VI 

Calendar No. 19 

AMENDMENT NO. 98 

Purpose: In the nature of a substitute. 

IN THE SENATE OF THE UNITED STATES—111th Cong., 1st Sess. 

H.R. 1 

Making supplemental appropriations for job preservation and 

creation, infrastructure investment, energy efficiency and 

science, assistance to the unemployed, and State and 

local fiscal stabilization, for the fiscal year ending September 30, 2009, and for other purposes. 

January 30, 2009 

Ordered to lie on the table and to be printed 

Intended to be proposed by Mr. INOUYE (for himself and 

Mr. BAUCUS) 

Viz: 

1 Strike out all after the enacting clause and insert the 

2 following: 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Recovery 

5 and Reinvestment Act of 2009’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 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 


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TITLE III—DEPARTMENT OF DEFENSE 

TITLE IV—ENERGY AND WATER DEVELOPMENT 

TITLE V—FINANCIAL SERVICES AND GENERAL GOVERNMENT 

TITLE VI—DEPARTMENT OF HOMELAND SECURITY 

TITLE VII—INTERIOR, ENVIRONMENT, AND RELATED AGENCIES 

TITLE VIII—DEPARTMENTS OF LABOR, HEALTH AND HUMAN 

SERVICES, AND EDUCATION, AND RELATED AGENCIES 

TITLE IX—LEGISLATIVE BRANCH 

TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND 

RELATED AGENCIES 

TITLE XI—STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS 

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

TITLE XIII—HEALTH INFORMATION TECHNOLOGY 

TITLE XIV—STATE FISCAL STABILIZATION 

TITLE XV—RECOVERY ACCOUNTABILITY AND TRANSPARENCY 

BOARD AND RECOVERY INDEPENDENT ADVISORY 

PANEL 

TITLE XVI—GENERAL PROVISIONS—THIS ACT 

DIVISION B—TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL 

RELIEF, AND OTHER PROVISIONS 

TITLE I—TAX PROVISIONS 

TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES 

TITLE III—HEALTH INSURANCE ASSISTANCE 

TITLE IV—HEALTH INFORMATION TECHNOLOGY 

TITLE V—STATE FISCAL RELIEF 

1 SEC. 3. REFERENCES. 

2 Except as expressly provided otherwise, any reference 

3 to ‘‘this Act’’ contained in any division of this Act shall 

4 be treated as referring only to the provisions of that divi5 sion. 

6 DIVISION A—APPROPRIATIONS 

7 PROVISIONS 

8 That the following sums are appropriated, out of any 

9 money in the Treasury not otherwise appropriated, for the 

10 fiscal year ending September 30, 2009, and for other pur11 poses, namely: 


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AMDT. NO. 98 

1 TITLE I—AGRICULTURE, RURAL DEVELOP2 MENT, FOOD AND DRUG ADMINISTRATION, 

3 AND RELATED AGENCIES 

4 DEPARTMENT OF AGRICULTURE 

5 OFFICE OF THE SECRETARY

6 (INCLUDING TRANSFERS OF FUNDS)

7 For an additional amount for the ‘‘Office of the Sec8 retary’’, $300,000,000, to remain available until Sep9 tember 30, 2010: Provided, That the Secretary may trans10 fer these funds to agencies of the Department, other than 

11 the Forest Service, for necessary replacement, moderniza12 tion, or upgrades of laboratories or other facilities to im13 prove workplace safety and mission-area efficiencies as 

14 deemed appropriate by the Secretary: Provided further, 

15 that the Secretary shall provide to the Committees on Ap16 propriations of the House and Senate a plan on the alloca17 tion of these funds no later than 60 days after the date 

18 of enactment of this Act. 

19 OFFICE OF INSPECTOR GENERAL

20 For an additional amount for ‘‘Office of Inspector 

21 General’’, $5,000,000, to remain available until Sep22 tember 30, 2010, for oversight and audit of programs, 

23 grants, and activities funded under this title. 


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1 COOPERATIVE STATE RESEARCH, EDUCATION AND

2 ECONOMIC SERVICE

3 RESEARCH AND EDUCATION ACTIVITIES

4 For an additional amount for competitive grants au5 thorized at 7 U.S.C. 450(i)(b), $100,000,000, to remain 

6 available until September 30, 2010. 

7 FARM SERVICE AGENCY

8 SALARIES AND EXPENSES

9 For an additional amount for ‘‘Farm Service Agency, 

10 Salaries and Expenses’’, $171,000,000, to remain avail11 able until September 30, 2010. 

12 AGRICULTURAL CREDIT INSURANCE FUND PROGARM

13 ACCOUNT

14 For an additional amount for gross obligations for 

15 the principal amount of direct and guaranteed farm own16 ership (7 U.S.C 1922 et seq.) and operating (7 U.S.C. 

17 1941 et seq.) loans, to be available from funds in the Agri18 cultural Credit Insurance Fund Program Account, as fol19 lows: farm ownership loans, $400,000,000 of which 

20 $100,000,000 shall be for unsubsidized guaranteed loans 

21 and $300,000,000 shall be for direct loans; and operating 

22 loans, $250,000,000 of which $50,000,000 shall be for un23 subsidized guaranteed loans and $200,000,000 shall be for 

24 direct loans. 

25 For an additional amount for the cost of direct and 

26 guaranteed loans, including the cost of modifying loans, 


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1 as defined in section 502 of the Congressional Budget Act 

2 of 1974, to remain available until September 30, 2010, 

3 as follows: farm ownership loans, $17,530,000 of which 

4 $330,000 shall be for unsubsidized guaranteed loans and 

5 $17,200,000 shall be for direct loans; and operating loans, 

6 $24,900,000 of which $1,300,000 shall be for unsub7 sidized guaranteed loans and $23,600,000 shall be for di8 rect loans. 

9 Funds appropriated by this Act to the Agricultural 

10 Credit Insurance Fund Program Account for farm owner11 ship, operating, and emergency direct loans and unsub12 sidized guaranteed loans may be transferred among these 

13 programs: Provided, That the Committees on Appropria14 tions of both Houses of Congress are notified at least 15 

15 days in advance of any transfer. 

16 NATURAL RESOURCES CONSERVATION SERVICE

17 WATERSHED AND FLOOD PREVENTION OPERATIONS

18 For an additional amount for ‘‘Watershed and Flood 

19 Prevention Operations’’, $275,000,000, to remain avail20 able until September 30, 2010. 

21 WATERSHED REHABILITATION PROGRAM

22 For an additional amount for the ‘‘Watershed Reha23 bilitation Program’’, $120,000,000, to remain available 

24 until September 30, 2010. 


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1 RURAL DEVELOPMENT SALARIES AND EXPENSES

2 For an additional amount for ‘‘Rural Development, 

3 Salaries and Expenses’’, $110,000,000, to remain avail4 able until September 30, 2010. 

5 RURAL HOUSING SERVICE

6 RURAL HOUSING INSURANCE PROGRAM ACCOUNT

7 For an additional amount for gross obligations for 

8 the principal amount of direct and guaranteed loans as 

9 authorized by title V of the Housing Act of 1949, to be 

10 available from funds in the Rural Housing Insurance 

11 Fund Program Account, as follows: $1,000,000,000 for 

12 section 502 direct loans; and $10,472,000,000 for section 

13 502 unsubsidized guaranteed loans. 

14 For an additional amount for the cost of direct and 

15 guaranteed loans, including the cost of modifying loans, 

16 as defined in section 502 of the Congressional Budget Act 

17 of 1974, to remain available until September 30, 2010, 

18 as follows: $67,000,000 for section 502 direct loans; and 

19 $133,000,000 for section 502 unsubsidized guaranteed 

20 loans. 

21 RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

22 For an additional amount for the cost of direct loans, 

23 loan guarantees, and grants for rural community facilities 

24 programs as authorized by section 306 and described in 

25 section 381E(d)(1) of the Consolidated Farm and Rural 


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1 Development Act, $127,000,000, to remain available until 

2 September 30, 2010. 

3 RURAL BUSINESS—COOPERATIVE SERVICE

4 RURAL BUSINESS PROGRAM ACCOUNT

5 For an additional amount for the cost of guaranteed 

6 loans and grants as authorized by sections 310B(a)(2)(A) 

7 and 310B(c) of the Consolidated Farm and Rural Devel8 opment Act (7 U.S.C. 1932), $150,000,000, to remain 

9 available until September 30, 2010. 

10 BIOREFINERY ASSISTANCE

11 For the cost of loan guarantees and grants, as au12 thorized by section 9003 of the Farm Security and Rural 

13 Investment Act of 2002 (7 U.S.C. 8103), $200,000,000, 

14 to remain available until September 30, 2010. 

15 RURAL ENERGY FOR AMERICA PROGRAM

16 For an additional amount for the cost of loan guaran17 tees and grants, as authorized by section 9007 of the 

18 Farm Security and Rural Investment Act of 2002 (7 

19 U.S.C. 8107), $50,000,000, to remain available until Sep20 tember 30, 2010: Provided, That these funds may be used 

21 by tribes, local units of government, and schools in rural 

22 areas, as defined in section 343(a) of the Consolidated 

23 Farm and Rural Development Act (7 U.S.C. 1991(a)). 


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1 RURAL UTILITIES SERVICE

2 RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

3 For an additional amount for the cost of direct loans, 

4 loan guarantees, and grants for the rural water, waste 

5 water, waste disposal, and solid waste management pro6 grams authorized by sections 306, 306A, 306C, 306D, 

7 and 310B and described in sections 306C(a)(2), 306D, 

8 and 381E(d)(2) of the Consolidated Farm and Rural De9 velopment Act, $1,375,000,000, to remain available until 

10 September 30, 2010. 

11 DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND

12 PROGRAM ACCOUNT

13 For an additional amount for direct loans and grants 

14 for distance learning and telemedicine services in rural 

15 areas, as authorized by 7 U.S.C. 950aaa, et seq., 

16 $200,000,000, to remain available until September 30, 

17 2010. 

18 FOOD AND NUTRITION SERVICE

19 CHILD NUTRITION PROGRAMS

20 For additional amount for the Richard B. Russell 

21 National School Lunch Act (42 U.S.C. 1751 et. seq.), ex22 cept section 21, and the Child Nutrition Act of 1966 (42 

23 U.S.C. 1771 et. seq.), except sections 17 and 21, 

24 $198,000,000, to remain available until September 30, 

25 2010, to carry out a grant program for National School 

26 Lunch Program equipment assistance: Provided, That 


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1 such funds shall be provided to States administering a 

2 school lunch program through a formula based on the 

3 ratio that the total number of lunches served in the Pro4 gram during the second preceding fiscal year bears to the 

5 total number of such lunches served in all States in such 

6 second preceding fiscal year: Provided further, That of 

7 such funds, the Secretary may approve the reserve by 

8 States of up to $20,000,000 for necessary enhancements 

9 to the State Distributing Agency’s commodity ordering 

10 and management system to achieve compatibility with the 

11 Department’s web-based supply chain management sys12 tem: Provided further, That of the funds remaining, the 

13 State shall provide competitive grants to school food au14 thorities based upon the need for equipment assistance in 

15 participating schools with priority given to schools in 

16 which not less than 50 percent of the students are eligible 

17 for free or reduced price meals under the Richard B. Rus18 sell National School Lunch Act and priority given to 

19 schools purchasing equipment for the purpose of offering 

20 more healthful foods and meals, in accordance with stand21 ards established by the Secretary. 

22 SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR

23 WOMEN, INFANTS, AND CHILDREN (WIC)

24 For an additional amount for the special supple25 mental nutrition program as authorized by section 17 of 

26 the Child Nutrition Act of 1966 (42 U.S.C. 1786), to reVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00009 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 main available until September 30, 2010, $500,000,000, 

2 of which $380,000,000 shall be placed in reserve to be 

3 allocated as the Secretary deems necessary, notwith4 standing section 17(i) of such Act, to support participa5 tion should cost or participation exceed budget estimates, 

6 and of which $120,000,000 shall be for the purposes speci7 fied in section 17(h)(10)(B)(ii): Provided, That up to one 

8 percent of the funding provided for the purposes specified 

9 in section 17(h)(10)(B)(ii) may be reserved by the Sec10 retary for Federal administrative activities in support of 

11 those purposes. 

12 COMMODITY ASSISTANCE PROGRAM

13 For an additional amount for the ‘‘Commodity As14 sistance Program’’, to remain available until September 

15 30, 2010, $150,000,000, which the Secretary shall use to 

16 purchase a variety of commodities as authorized by the 

17 Commodity Credit Corporation or under section 32 of the 

18 Act entitled ‘‘An Act to amend the Agricultural Adjust19 ment Act, and for other purposes’’, approved August 24, 

20 1935 (7 U.S.C. 612c): Provided, That the Secretary shall 

21 distribute the commodities to States for distribution in ac22 cordance with section 214 of the Emergency Food Assist23 ance Act of 1983 (Public Law 98–8; 7 U.S.C. 612c note): 

24 Provided further, That of the funds made available, the 

25 Secretary may use up to $50,000,000 for costs associated 

26 with the distribution of commodities. 


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AMDT. NO. 98 

1 GENERAL PROVISIONS—THIS TITLE 

2 SEC. 101. Funds appropriated by this Act and made 

3 available to the United States Department of Agriculture 

4 for broadband direct loans and loan guarantees, as author5 ized under title VI of the Rural Electrification Act of 1936 

6 (7 U.S.C. 950bb) and for grants, shall be available for 

7 broadband infrastructure in any area of the United States 

8 notwithstanding title VI of the Rural Electrification Act 

9 of 1936: Provided, That at least 75 percent of the area 

10 served by the projects receiving funds from such grants, 

11 loans, or loan guarantees is in a rural area without suffi12 cient access to high speed broadband service to facilitate 

13 rural economic development, as determined by the Sec14 retary: Provided further, That priority for awarding funds 

15 made available under this paragraph shall be given to 

16 projects that provide service to the highest proportion of 

17 rural residents that do not have sufficient access to 

18 broadband service: Provided further, That priority for 

19 awarding such funds shall be given to project applications 

20 that demonstrate that, if the application is approved, all 

21 project elements will be fully funded: Provided further, 

22 That priority for awarding such funds shall be given to 

23 activities that can commence promptly following approval: 

24 Provided further, That the Department shall submit a re25 port on planned spending and actual obligations describVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00011 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 ing the use of these funds not later than 90 days after 

2 the date of enactment of this Act, and quarterly thereafter 

3 until all funds are obligated, to the Committees on Appro4 priations of the House of Representatives and the Senate. 

5 SEC. 102. NUTRITION FOR ECONOMIC RECOVERY. 

6 (a) MAXIMUM BENEFIT INCREASES.— 

7 (1) ECONOMIC RECOVERY 1-MONTH BEGINNING

8 STIMULUS PAYMENT.—For the first month that be9 gins not less than 25 days after the date of enact10 ment of this Act, the Secretary of Agriculture (re11 ferred to in this section as the ‘‘Secretary’’) shall in12 crease the cost of the thrifty food plan for purposes 

13 of section 8(a) of the Food and Nutrition Act of 

14 2008 (7 U.S.C. 2017(a)) by 85 percent. 

15 (2) REMAINDER OF FISCAL YEAR 2009.—Begin16 ning with the second month that begins not less 

17 than 25 days after the date of enactment of this 

18 Act, and for each subsequent month through the 

19 month ending September 30, 2009, the Secretary 

20 shall increase the cost of the thrifty food plan for 

21 purposes of section 8(a) of the Food and Nutrition 

22 Act of 2008 (7 U.S.C. 2017(a)) by 12 percent. 

23 (3) SUBSEQUENT INCREASE FOR FISCAL YEAR

24 2010.—Beginning on October 1, 2009, and for each 

25 subsequent month through the month ending SepVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00012 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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AMDT. NO. 98 

1 tember 30, 2010, the Secretary shall increase the 

2 cost of the thrifty food plan for purposes of section 

3 8(a) of the Food and Nutrition Act of 2008 (7 

4 U.S.C. 2017(a)) by an amount equal to 12 percent, 

5 less the percentage by which the Secretary deter6 mines the thrifty food plan would otherwise be ad7 justed on October 1, 2009, as required under section 

8 3(u) of that Act (7 U.S.C. 2012(u)), if the percent9 age is less than 12 percent. 

10 (4) SUBSEQUENT INCREASE FOR FISCAL YEAR

11 2011.—Beginning on October 1, 2010, and for each 

12 subsequent month through the month ending Sep13 tember 30, 2011, the Secretary shall increase the 

14 cost of the thrifty food plan for purposes of section 

15 8(a) of the Food and Nutrition Act of 2008 (7 

16 U.S.C. 2017(a)) by an amount equal to 12 percent, 

17 less the sum of the percentages by which the Sec18 retary determines the thrifty food plan would other19 wise be adjusted on October 1, 2009 and October 1, 

20 2010, as required under section 3(u) of that Act (7 

21 U.S.C. 2012(u)), if the sum of such percentages is 

22 less than 12 percent. 

23 (5) TERMINATION OF EFFECTIVENESS.—Effec24 tive beginning October 1, 2011, the authority proVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00013 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 vided by this subsection terminates and has no ef2 fect. 

3 (b) ADMINISTRATION.—In carrying out this section, 

4 the Secretary shall— 

5 (1) consider the benefit increases described in 

6 subsection (a) to be a mass change; 

7 (2) require a simple process for States to notify 

8 households of the changes in benefits; 

9 (3) consider section 16(c)(3)(A) of the Food 

10 and Nutrition Act of 2008 (7 U.S.C. 2025(c)(3)(A)) 

11 to apply to any errors in the implementation of this 

12 section, without regard to the 120-day limit de13 scribed in section 16(c)(3)(A) of that Act; 

14 (4) disregard the additional amount of benefits 

15 that a household receives as a result of this section 

16 in determining the amount of overissuances under 

17 section 13 of the Food and Nutrition Act of 2008 

18 (7 U.S.C. 2022) and the hours of participation in a 

19 program under section 6(d), 20, or 26 of that Act 

20 (7 U.S.C. 2015(d), 2029, 2035); and 

21 (5) set the tolerance level for excluding small 

22 errors for the purposes of section 16(c) of the Food 

23 and Nutrition Act of 2008 (7 U.S.C. 2025(c)) at 

24 $50 for the period that the benefit increase under 

25 subsection (a) is in effect. 


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1 (c) ADMINISTRATIVE EXPENSES.— 

2 (1) IN GENERAL.—For the costs of State ad3 ministrative expenses associated with carrying out 

4 this section and administering the supplemental nu5 trition assistance program established under the 

6 Food and Nutrition Act of 2008 (7 U.S.C. 2011 et 

7 seq.) (referred to in this section as the ‘‘supple8 mental nutrition assistance program’’) during a pe9 riod of rising program caseloads, and for the ex10 penses of the Secretary under paragraph (6), the 

11 Secretary shall make available $150,000,000 for 

12 each of fiscal years 2009 and 2010, to remain avail13 able through September 30, 2010. 

14 (2) TIMING FOR FISCAL YEAR 2009.—Not later 

15 than 60 days after the date of enactment of this 

16 Act, the Secretary shall make available to States 

17 amounts for fiscal year 2009 under paragraph (1). 

18 (3) ALLOCATION OF FUNDS.—Except as pro19 vided in paragraph (6), funds described in para20 graph (1) shall be made available to States that 

21 meet the requirements of paragraph (5) as grants to 

22 State agencies for each fiscal year as follows: 

23 (A) 75 percent of the amounts available 

24 for each fiscal year shall be allocated to States 

25 based on the share of each State of households 


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1 that participate in the supplemental nutrition 

2 assistance program as reported to the Depart3 ment of Agriculture for the most recent 12- 

4 month period for which data are available, ad5 justed by the Secretary (in the discretion of the 

6 Secretary) for participation in disaster pro7 grams under section 5(h) of the Food and Nu8 trition Act of 2008 (7 U.S.C. 2014(h)); and 

9 (B) 25 percent of the amounts available 

10 for each fiscal year shall be allocated to States 

11 based on the increase in the number of house12 holds that participate in the supplemental nu13 trition assistance program as reported to the 

14 Department of Agriculture over the most recent 

15 12-month period for which data are available, 

16 adjusted by the Secretary (in the discretion of 

17 the Secretary) for participation in disaster pro18 grams under section 5(h) of the Food and Nu19 trition Act of 2008 (7 U.S.C. 2014(h)). 

20 (4) REDISTRIBUTION.—The Secretary shall de21 termine an appropriate procedure for redistribution 

22 of amounts allocated to States that would otherwise 

23 be provided allocations under paragraph (3) for a 

24 fiscal year but that do not meet the requirements of 

25 paragraph (5). 


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1 (5) MAINTENANCE OF EFFORT.— 

2 (A) DEFINITION OF SPECIFIED STATE AD3 MINISTRATIVE COSTS.—In this paragraph: 

4 (i) IN GENERAL.—The term ‘‘specified 

5 State administrative costs’’ includes all 

6 State administrative costs under the sup7 plemental nutrition assistance program. 

8 (ii) EXCLUSIONS.—The term ‘‘speci9 fied State administrative costs’’ does not 

10 include— 

11 (I) the costs of employment and 

12 training programs under section 6(d), 

13 20, or 26 of the Food and Nutrition 

14 Act of 2008 (7 U.S.C. 2015(d), 2029, 

15 2035); 

16 (II) the costs of nutrition edu17 cation under section 11(f) of that Act 

18 (7 U.S.C. 2020(f)); and 

19 (III) any other costs the Sec20 retary determines should be excluded. 

21 (B) REQUIREMENT.—The Secretary shall 

22 make funds under this subsection available only 

23 to States that, as determined by the Secretary, 

24 maintain State expenditures on specified State 

25 administrative costs. 


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1 (6) MONITORING AND EVALUATION.—Of the 

2 amounts made available under paragraph (1), the 

3 Secretary may retain up to $5,000,000 for the costs 

4 incurred by the Secretary in monitoring the integrity 

5 and evaluating the effects of the payments made 

6 under this section. 

7 (d) FOOD DISTRIBUTION PROGRAM ON INDIAN RES8 ERVATIONS.—For the costs of administrative expenses as9 sociated with the food distribution program on Indian res10 ervations established under section 4(b) of the Food and 

11 Nutrition Act of 2008 (7 U.S.C. 2013(b)), the Secretary 

12 shall make available $5,000,000, to remain available until 

13 September 30, 2010. 

14 (e) CONSOLIDATED BLOCK GRANTS FOR PUERTO

15 RICO AND AMERICAN SAMOA.— 

16 (1) FISCAL YEAR 2009.— 

17 (A) IN GENERAL.—For fiscal year 2009, 

18 the Secretary shall increase by 12 percent the 

19 amount available for nutrition assistance for eli20 gible households under the consolidated block 

21 grants for the Commonwealth of Puerto Rico 

22 and American Samoa under section 19 of the 

23 Food and Nutrition Act of 2008 (7 U.S.C. 

24 2028). 


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1 (B) AVAILABILITY OF FUNDS.—Funds 

2 made available under subparagraph (A) shall 

3 remain available through September 30, 2010. 

4 (2) FISCAL YEAR 2010.—For fiscal year 2010, 

5 the Secretary shall increase the amount available for 

6 nutrition assistance for eligible households under the 

7 consolidated block grants for the Commonwealth of 

8 Puerto Rico and American Samoa under section 19 

9 of the Food and Nutrition Act of 2008 (7 U.S.C. 

10 2028) by 12 percent, less the percentage by which 

11 the Secretary determines the consolidated block 

12 grants would otherwise be adjusted on October 1, 

13 2009, as required by section 19(a)(2)(A)(ii) of that 

14 Act (7 U.S.C. 2028(a)(2)(A)(ii)), if the percentage 

15 is less than 12 percent. 

16 (3) FISCAL YEAR 2011.—For fiscal year 2011, 

17 the Secretary shall increase the amount available for 

18 nutrition assistance for eligible households under the 

19 consolidated block grants for the Commonwealth of 

20 Puerto Rico and American Samoa under section 19 

21 of the Food and Nutrition Act of 2008 (7 U.S.C. 

22 2028) by 12 percent, less the sum of the percentages 

23 by which the Secretary determines the consolidated 

24 block grants would otherwise be adjusted on October 

25 1, 2009, and October 1, 2010, as required by section 


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1 19(a)(2)(A)(ii) of that Act (7 U.S.C. 

2 2028(a)(2)(A)(ii)), if the sum of the percentages is 

3 less than 12 percent. 

4 (f) TREATMENT OF JOBLESS WORKERS.— 

5 (1) REMAINDER OF FISCAL YEAR 2009

6 THROUGH FISCAL YEAR 2011.—Beginning with the 

7 first month that begins not less than 25 days after 

8 the date of enactment of this Act and for each sub9 sequent month through September 30, 2011, eligi10 bility for supplemental nutrition assistance program 

11 benefits shall not be limited under section 6(o)(2) of 

12 the Food and Nutrition Act of 2008 unless an indi13 vidual does not comply with the requirements of a 

14 program offered by the State agency that meets the 

15 standards of subparagraphs (B) or (C) of that para16 graph. 

17 (2) FISCAL YEAR 2012 AND THEREAFTER.—Be18 ginning on October 1, 2011, for the purposes of sec19 tion 6(o) of the Food and Nutrition Act of 2008 (7 

20 U.S.C. 2015(o)), a State agency shall disregard any 

21 period during which an individual received benefits 

22 under the supplemental nutrition assistance program 

23 prior to October 1, 2011. 

24 (g) FUNDING.—There are appropriated to the Sec25 retary out of funds of the Treasury not otherwise approVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00020 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 priated such sums as are necessary to carry out this sec2 tion. 

3 SEC. 103. AGRICULTURAL DISASTER ASSISTANCE

4 TRANSITION. (a) FEDERAL CROP INSURANCE ACT.—Sec5 tion 531(g) of the Federal Crop Insurance Act (7 U.S.C. 

6 1531(g)) is amended by adding at the end the following: 

7 ‘‘(7) 2008 TRANSITION ASSISTANCE.— 

8 ‘‘(A) IN GENERAL.—Eligible producers on 

9 a farm described in subparagraph (A) of para10 graph (4) that failed to timely pay the appro11 priate fee described in that subparagraph shall 

12 be eligible for assistance under this section in 

13 accordance with subparagraph (B) if the eligi14 ble producers on the farm— 

15 ‘‘(i) pay the appropriate fee described 

16 in paragraph (4)(A) not later than 90 days 

17 after the date of enactment of this para18 graph; and 

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

20 commodity of the eligible producers on the 

21 farm, excluding grazing land, agree to ob22 tain a policy or plan of insurance under 

23 subtitle A (excluding a crop insurance pilot 

24 program under that subtitle) for the next 

25 insurance year for which crop insurance is 


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1 available to the eligible producers on the 

2 farm at a level of coverage equal to 70 per3 cent or more of the recorded or appraised 

4 average yield indemnified at 100 percent of 

5 the expected market price, or an equivalent 

6 coverage; and 

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

8 commodity of the eligible producers on the 

9 farm, agree to file the required paperwork, 

10 and pay the administrative fee by the ap11 plicable State filing deadline, for the non12 insured crop assistance program for the 

13 2009 crop year. 

14 ‘‘(B) AMOUNT OF ASSISTANCE.—Eligible 

15 producers on a farm that meet the require16 ments of subparagraph (A) shall be eligible to 

17 receive assistance under this section as if the el18 igible producers on the farm— 

19 ‘‘(i) in the case of each insurable com20 modity of the eligible producers on the 

21 farm, had obtained a policy or plan of in22 surance for the 2008 crop year at a level 

23 of coverage not to exceed 70 percent or 

24 more of the recorded or appraised average 

25 yield indemnified at 100 percent of the exVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00022 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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AMDT. NO. 98 

1 pected market price, or an equivalent cov2 erage; and 

3 ‘‘(ii) in the case of each noninsurable 

4 commodity of the eligible producers on the 

5 farm, had filed the required paperwork, 

6 and paid the administrative fee by the ap7 plicable State filing deadline, for the non8 insured crop assistance program for the 

9 2008 crop year, except that in determining 

10 yield under that program, the Secretary 

11 shall use a percentage that is 70 percent. 

12 ‘‘(C) EQUITABLE RELIEF.—Except as pro13 vided in subparagraph (D), eligible producers 

14 on a farm that met the requirements of para15 graph (1) before the deadline described in para16 graph (4)(A) and received, or are eligible to re17 ceive, a disaster assistance payment under this 

18 section for a production loss during the 2008 

19 crop year shall be eligible to receive an addi20 tional amount equal to the greater of— 

21 ‘‘(i) the amount that would have been 

22 calculated under subparagraph (B) if the 

23 eligible producers on the farm had paid the 

24 appropriate fee under that subparagraph; 

25 or 


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AMDT. NO. 98 

1 ‘‘(ii) the amount that would have been 

2 calculated under subparagraph (A) of sub3 section (b)(3) if— 

4 ‘‘(I) in clause (i) of that subpara5 graph, ‘120 percent’ is substituted for 

6 ‘115 percent’; and 

7 ‘‘(II) in clause (ii) of that sub8 paragraph, ‘125’ is substituted for 

9 ‘120 percent’. 

10 ‘‘(D) LIMITATION.—For amounts made 

11 available under this paragraph, the Secretary 

12 may make such adjustments as are necessary to 

13 ensure that no producer receives a payment 

14 under this paragraph for an amount in excess 

15 of the assistance received by a similarly situated 

16 producer that had purchased the same or high17 er level of crop insurance prior to the date of 

18 enactment of this paragraph. 

19 ‘‘(E) AUTHORITY OF THE SECRETARY.— 

20 The Secretary may provide such additional as21 sistance as the Secretary considers appropriate 

22 to provide equitable treatment for eligible pro23 ducers on a farm that suffered production 

24 losses in the 2008 crop year that result in 


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AMDT. NO. 98 

1 multiyear production losses, as determined by 

2 the Secretary. 

3 ‘‘(F) LACK OF ACCESS.—Notwithstanding 

4 any other provision of this section, the Sec5 retary may provide assistance under this section 

6 to eligible producers on a farm that— 

7 ‘‘(i) suffered a production loss due to 

8 a natural cause during the 2008 crop year; 

9 and 

10 ‘‘(ii) as determined by the Secretary— 

11 ‘‘(I)(aa) except as provided in 

12 item (bb), lack access to a policy or 

13 plan of insurance under subtitle A; or 

14 ‘‘(bb) do not qualify for a written 

15 agreement because 1 or more farming 

16 practices, which the Secretary has de17 termined are good farming practices, 

18 of the eligible producers on the farm 

19 differ significantly from the farming 

20 practices used by producers of the 

21 same crop in other regions of the 

22 United States; and 

23 ‘‘(II) are not eligible for the non24 insured crop disaster assistance pro25 gram established by section 196 of the 


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AMDT. NO. 98 

1 Federal Agriculture Improvement and 

2 Reform Act of 1996 (7 U.S.C. 

3 7333).’’. 

4 (b) TRADE ACT OF 1974.—Section 901(g) of the 

5 Trade Act of 1974 (19 U.S.C. 2497(g)) is amended by 

6 adding at the end the following: 

7 ‘‘(7) 2008 TRANSITION ASSISTANCE.— 

8 ‘‘(A) IN GENERAL.—Eligible producers on 

9 a farm described in subparagraph (A) of para10 graph (4) that failed to timely pay the appro11 priate fee described in that subparagraph shall 

12 be eligible for assistance under this section in 

13 accordance with subparagraph (B) if the eligi14 ble producers on the farm— 

15 ‘‘(i) pay the appropriate fee described 

16 in paragraph (4)(A) not later than 90 days 

17 after the date of enactment of this para18 graph; and 

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

20 commodity of the eligible producers on the 

21 farm, excluding grazing land, agree to ob22 tain a policy or plan of insurance under 

23 the Federal Crop Insurance Act (7 U.S.C. 

24 1501 et seq.) (excluding a crop insurance 

25 pilot program under that Act) for the next 


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AMDT. NO. 98 

1 insurance year for which crop insurance is 

2 available to the eligible producers on the 

3 farm at a level of coverage equal to 70 per4 cent or more of the recorded or appraised 

5 average yield indemnified at 100 percent of 

6 the expected market price, or an equivalent 

7 coverage; and 

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

9 commodity of the eligible producers on the 

10 farm, agree to file the required paperwork, 

11 and pay the administrative fee by the ap12 plicable State filing deadline, for the non13 insured crop assistance program for the 

14 2009 crop year. 

15 ‘‘(B) AMOUNT OF ASSISTANCE.—Eligible 

16 producers on a farm that meet the require17 ments of subparagraph (A) shall be eligible to 

18 receive assistance under this section as if the el19 igible producers on the farm— 

20 ‘‘(i) in the case of each insurable com21 modity of the eligible producers on the 

22 farm, had obtained a policy or plan of in23 surance for the 2008 crop year at a level 

24 of coverage not to exceed 70 percent or 

25 more of the recorded or appraised average 


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AMDT. NO. 98 

1 yield indemnified at 100 percent of the ex2 pected market price, or an equivalent cov3 erage; and 

4 ‘‘(ii) in the case of each noninsurable 

5 commodity of the eligible producers on the 

6 farm, had filed the required paperwork, 

7 and paid the administrative fee by the ap8 plicable State filing deadline, for the non9 insured crop assistance program for the 

10 2008 crop year, except that in determining 

11 yield under that program, the Secretary 

12 shall use a percentage that is 70 percent. 

13 ‘‘(C) EQUITABLE RELIEF.—Except as pro14 vided in subparagraph (D), eligible producers 

15 on a farm that met the requirements of para16 graph (1) before the deadline described in para17 graph (4)(A) and received, or are eligible to re18 ceive, a disaster assistance payment under this 

19 section for a production loss during the 2008 

20 crop year shall be eligible to receive an addi21 tional amount equal to the greater of— 

22 ‘‘(i) the amount that would have been 

23 calculated under subparagraph (B) if the 

24 eligible producers on the farm had paid the 


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AMDT. NO. 98 

1 appropriate fee under that subparagraph; 

2 or 

3 ‘‘(ii) the amount that would have been 

4 calculated under subparagraph (A) of sub5 section (b)(3) if— 

6 ‘‘(I) in clause (i) of that subpara7 graph, ‘120 percent’ is substituted for 

8 ‘115 percent’; and 

9 ‘‘(II) in clause (ii) of that sub10 paragraph, ‘125’ is substituted for 

11 ‘120 percent’. 

12 ‘‘(D) LIMITATION.—For amounts made 

13 available under this paragraph, the Secretary 

14 may make such adjustments as are necessary to 

15 ensure that no producer receives a payment 

16 under this paragraph for an amount in excess 

17 of the assistance received by a similarly situated 

18 producer that had purchased the same or high19 er level of crop insurance prior to the date of 

20 enactment of this paragraph. 

21 ‘‘(E) AUTHORITY OF THE SECRETARY.— 

22 The Secretary may provide such additional as23 sistance as the Secretary considers appropriate 

24 to provide equitable treatment for eligible pro25 ducers on a farm that suffered production 


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AMDT. NO. 98 

1 losses in the 2008 crop year that result in 

2 multiyear production losses, as determined by 

3 the Secretary. 

4 ‘‘(F) LACK OF ACCESS.—Notwithstanding 

5 any other provision of this section, the Sec6 retary may provide assistance under this section 

7 to eligible producers on a farm that— 

8 ‘‘(i) suffered a production loss due to 

9 a natural cause during the 2008 crop year; 

10 and 

11 ‘‘(ii) as determined by the Secretary— 

12 ‘‘(I)(aa) except as provided in 

13 item (bb), lack access to a policy or 

14 plan of insurance under subtitle A; or 

15 ‘‘(bb) do not qualify for a written 

16 agreement because 1 or more farming 

17 practices, which the Secretary has de18 termined are good farming practices, 

19 of the eligible producers on the farm 

20 differ significantly from the farming 

21 practices used by producers of the 

22 same crop in other regions of the 

23 United States; and 

24 ‘‘(II) are not eligible for the non25 insured crop disaster assistance proVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00030 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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AMDT. NO. 98 

1 gram established by section 196 of the 

2 Federal Agriculture Improvement and 

3 Reform Act of 1996 (7 U.S.C. 

4 7333).’’. 

5 (c) EMERGENCY LOANS.— 

6 (1) IN GENERAL.—For the principal amount of 

7 direct emergency loans under section 321 of the 

8 Consolidated Farm and Rural Development Act (7 

9 U.S.C. 1961), $200,000,000. 

10 (2) DIRECT EMERGENCY LOANS.—For the cost 

11 of direct emergency loans, including the cost of 

12 modifying loans, as defined in section 502 of the 

13 Congressional Budget Act of 1974 (2 U.S.C. 661a), 

14 $28,440,000, to remain available until September 

15 30, 2010. 

16 (d) 2008 AQUACULTURE ASSISTANCE.— 

17 (1) DEFINITIONS.—In this subsection: 

18 (A) ELIGIBLE AQUACULTURE PRO19 DUCER.—The term ‘‘eligible aquaculture pro20 ducer’’ means an aquaculture producer that 

21 during the 2008 calendar year, as determined 

22 by the Secretary— 

23 (i) produced an aquaculture species 

24 for which feed costs represented a substanVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00031 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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AMDT. NO. 98 

1 tial percentage of the input costs of the 

2 aquaculture operation; and 

3 (ii) experienced a substantial price in4 crease of feed costs above the previous 5- 

5 year average. 

6 (B) SECRETARY.—The term ‘‘Secretary’’ 

7 means the Secretary of Agriculture. 

8 (2) GRANT PROGRAM.— 

9 (A) IN GENERAL.—Of the funds of the 

10 Commodity Credit Corporation, the Secretary 

11 shall use not more than $100,000,000, to re12 main available until September 30, 2010, to 

13 carry out a program of grants to States to as14 sist eligible aquaculture producers for losses as15 sociated with high feed input costs during the 

16 2008 calendar year. 

17 (B) NOTIFICATION.—Not later than 60 

18 days after the date of enactment of this Act, 

19 the Secretary shall notify the State department 

20 of agriculture (or similar entity) in each State 

21 of the availability of funds to assist eligible 

22 aquaculture producers, including such terms as 

23 determined by the Secretary to be necessary for 

24 the equitable treatment of eligible aquaculture 

25 producers. 


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AMDT. NO. 98 

1 (C) PROVISION OF GRANTS.— 

2 (i) IN GENERAL.—The Secretary shall 

3 make grants to States under this sub4 section on a pro rata basis based on the 

5 amount of aquaculture feed used in each 

6 State during the 2007 calendar year, as 

7 determined by the Secretary. 

8 (ii) TIMING.—Not later than 120 days 

9 after the date of enactment of this Act, the 

10 Secretary shall make grants to States to 

11 provide assistance under this subsection. 

12 (D) REQUIREMENTS.—The Secretary shall 

13 make grants under this subsection only to 

14 States that demonstrate to the satisfaction of 

15 the Secretary that the State will— 

16 (i) use grant funds to assist eligible 

17 aquaculture producers; 

18 (ii) provide assistance to eligible aqua19 culture producers not later than 60 days 

20 after the date on which the State receives 

21 grant funds; and 

22 (iii) not later than 30 days after the 

23 date on which the State provides assistance 

24 to eligible aquaculture producers, submit to 

25 the Secretary a report that describes— 


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AMDT. NO. 98 

1 (I) the manner in which the 

2 State provided assistance; 

3 (II) the amounts of assistance 

4 provided per species of aquaculture; 

5 and 

6 (III) the process by which the 

7 State determined the levels of assist8 ance to eligible aquaculture producers. 

9 (3) REDUCTION IN PAYMENTS.—An eligible 

10 aquaculture producer that receives assistance under 

11 this subsection shall not be eligible to receive any 

12 other assistance under the supplemental agricultural 

13 disaster assistance program established under sec14 tion 531 of the Federal Crop Insurance Act (7 

15 U.S.C. 1531) and section 901 of the Trade Act of 

16 1974 (19 U.S.C. 2497) for any losses in 2008 relat17 ing to the same species of aquaculture. 

18 (4) REPORT TO CONGRESS.—Not later than 

19 180 days after the date of enactment of this Act, the 

20 Secretary shall submit to the appropriate committees 

21 of Congress a report that— 

22 (A) describes in detail the manner in which 

23 this subsection has been carried out; and 

24 (B) includes the information reported to 

25 the Secretary under paragraph (2)(D)(iii). 


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AMDT. NO. 98 

1 SEC. 104. (a) Hereafter, in this section, the term 

2 ‘‘nonambulatory disabled cattle’’ means cattle, other than 

3 cattle that are less than 5 months old or weigh less than 

4 500 pounds, subject to inspection under section 3(b) of 

5 the Federal Meat Inspection Act (21 U.S.C. 603(b)) that 

6 cannot rise from a recumbent position or walk, including 

7 cattle with a broken appendage, severed tendon or liga8 ment, nerve paralysis, fractured vertebral column, or a 

9 metabolic condition. 

10 (b) Hereafter, none of the funds made available 

11 under this or any other Act may be used to pay the sala12 ries or expenses of any personnel of the Food Safety and 

13 Inspection Service to pass through inspection any non14 ambulatory disabled cattle for use as human food, regard15 less of the reason for the nonambulatory status of the cat16 tle or the time at which the cattle became nonambulatory. 

17 SEC. 105. STATE AND LOCAL GOVERNMENTS. Sec18 tion 1001(f)(6)(A) of the Food Security Act of 1985 (7 

19 U.S.C. 1308(f)(6)(A)) is amended by inserting ‘‘(other 

20 than the conservation reserve program established under 

21 subchapter B of chapter 1 of subtitle D of title XII of 

22 this Act)’’ before the period at the end. 

23 SEC. 106. Except for title I of the Food, Conserva24 tion, and Energy Act of 2008 (Public Law 110–246), 

25 Commodity Credit Corporation funds provided in that Act 


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AMDT. NO. 98 

1 shall be available for administrative expenses, including 

2 technical assistance, without regard to the limitation in 

3 15 U.S.C. 714i. 

4 TITLE II—COMMERCE, JUSTICE, SCIENCE, AND 

5 RELATED AGENCIES 

6 DEPARTMENT OF COMMERCE 

7 BUREAU OF INDUSTRY AND SECURITY

8 OPERATIONS AND ADMINISTRATION

9 For an additional amount for ‘‘Operations and Ad10 ministration’’, $20,000,000, to remain available until Sep11 tember 30, 2010. 

12 ECONOMIC DEVELOPMENT ADMINISTRATION

13 ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

14 For an additional amount for ‘‘Economic Develop15 ment Assistance Programs’’, $150,000,000, to remain 

16 available until September 30, 2010: Provided, That 

17 $50,000,000 shall be for economic adjustment assistance 

18 as authorized by section 209 of the Public Works and Eco19 nomic Development Act of 1965, as amended (42 U.S.C. 

20 3149): Provided further, That in allocating the funds pro21 vided in the previous proviso, the Secretary of Commerce 

22 shall give priority consideration to areas of the Nation 

23 that have experienced sudden and severe economic disloca24 tion and job loss due to corporate restructuring. 


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AMDT. NO. 98 

1 BUREAU OF THE CENSUS

2 PERIODIC CENSUSES AND PROGRAMS

3 For an additional amount for ‘‘Periodic Censuses and 

4 Programs’’, $1,000,000,000, to remain available until 

5 September 30, 2010. 

6 NATIONAL TELECOMMUNICATIONS AND INFORMATION

7 ADMINISTRATION

8 BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

9 For an amount for ‘‘Broadband Technology Opportu10 nities Program’’, $9,000,000,000, to remain available 

11 until September 30, 2010: Provided, That of the funds 

12 provided under this heading, $8,650,000,000 shall be ex13 pended pursuant to section 201 of this Act, of which: not 

14 less than $200,000,000 shall be available for competitive 

15 grants for expanding public computer center capacity, in16 cluding at community colleges and public libraries; not less 

17 than $250,000,000 shall be available for competitive 

18 grants for innovative programs to encourage sustainable 

19 adoption of broadband service; and $10,000,000 shall be 

20 transferred to ‘‘Department of Commerce, Office of In21 spector General’’ for the purposes of audits and oversight 

22 of funds provided under this heading and such funds shall 

23 remain available until expended: Provided further, That 50 

24 percent of the funds provided in the previous proviso shall 

25 be used to support projects in rural communities, which 


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AMDT. NO. 98 

1 in part may be transferred to the Department of Agri2 culture for administration through the Rural Utilities 

3 Service if deemed necessary and appropriate by the Sec4 retary of Commerce, in consultation with the Secretary of 

5 Agriculture, and only if the Committees on Appropriations 

6 of the House and the Senate are notified not less than 

7 15 days in advance of the transfer of such funds: Provided 

8 further, That of the funds provided under this heading, 

9 up to $350,000,000 may be expended pursuant to Public 

10 Law 110–385 (47 U.S.C. 1301 note) and for the purposes 

11 of developing and maintaining a broadband inventory map 

12 pursuant to section 201 of this Act: Provided further, That 

13 of the funds provided under this heading, amounts deemed 

14 necessary and appropriate by the Secretary of Commerce, 

15 in consultation with the Federal Communications Com16 mission (FCC), may be transferred to the FCC for the 

17 purposes of developing a national broadband plan or for 

18 carrying out any other FCC responsibilities pursuant to 

19 section 201 of this Act, and only if the Committees on 

20 Appropriations of the House and the Senate are notified 

21 not less than 15 days in advance of the transfer of such 

22 funds: Provided further, That not more than 3 percent of 

23 funds provided under this heading may be used for admin24 istrative costs, and this limitation shall apply to funds 


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AMDT. NO. 98 

1 which may be transferred to the Department of Agri2 culture and the FCC. 

3 DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM

4 For an amount for ‘‘Digital-to-Analog Converter Box 

5 Program’’, $650,000,000, for additional coupons and re6 lated activities under the program implemented under sec7 tion 3005 of the Digital Television Transition and Public 

8 Safety Act of 2005, to remain available until September 

9 30, 2010: Provided, That of the amounts provided under 

10 this heading, $90,000,000 may be for education and out11 reach, including grants to organizations for programs to 

12 educate vulnerable populations, including senior citizens, 

13 minority communities, people with disabilities, low-income 

14 individuals, and people living in rural areas, about the 

15 transition and to provide one-on-one assistance to vulner16 able populations, including help with converter box instal17 lation: Provided further, That the amounts provided in the 

18 previous proviso may be transferred to the Federal Com19 munications Commission (Commission) if deemed nec20 essary and appropriate by the Secretary of Commerce in 

21 consultation with the Commission, and only if the Com22 mittees on Appropriations of the House and the Senate 

23 are notified not less than 5 days in advance of transfer 

24 of such funds: Provided further, That $2,000,000 of funds 

25 provided under this heading shall be transferred to ‘‘DeVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00039 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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AMDT. NO. 98 

1 partment of Commerce, Office of Inspector General’’ for 

2 audits and oversight of funds provided under this heading. 

3 NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

4 SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES

5 For an additional amount for ‘‘Scientific and Tech6 nical Research and Services’’, $218,000,000, to remain 

7 available until September 30, 2010. 

8 CONSTRUCTION OF RESEARCH FACILITIES

9 For an additional amount for ‘‘Construction of Re10 search Facilities’’, $357,000,000, to remain available until 

11 September 30, 2010. 

12 NATIONAL OCEANIC AND ATMOSPHERIC

13 ADMINISTRATION

14 OPERATIONS, RESEARCH, AND FACILITIES

15 For an additional amount for ‘‘Operations, Research, 

16 and Facilities’’, $427,000,000, to remain available until 

17 September 30, 2010. 

18 PROCUREMENT, ACQUISITION AND CONSTRUCTION

19 For an additional amount for ‘‘Procurement, Acquisi20 tion and Construction’’, $795,000,000, to remain available 

21 until September 30, 2010. 

22 DEPARTMENTAL MANAGEMENT

23 For an additional amount for ‘‘Departmental Man24 agement’’, $34,000,000, to remain available until Sep25 tember 30, 2010. 


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AMDT. NO. 98 

1 OFFICE OF INSPECTOR GENERAL

2 For an additional amount for ‘‘Office of Inspector 

3 General’’, $6,000,000, to remain available until September 

4 30, 2010. 

5 DEPARTMENT OF JUSTICE 

6 GENERAL ADMINISTRATION

7 TACTICAL LAW ENFORCEMENT WIRELESS

8 COMMUNICATIONS

9 For an additional amount for ‘‘Tactical Law Enforce10 ment Wireless Communications’’, $200,000,000 for the 

11 costs of developing and implementing a nationwide Inte12 grated Wireless network supporting Federal law enforce13 ment, to remain available until September 30, 2010. 

14 DETENTION TRUSTEE

15 For an additional amount for ‘‘Detention Trustee’’, 

16 $150,000,000, to remain available until September 30, 

17 2010. 

18 OFFICE OF INSPECTOR GENERAL

19 For an additional amount for ‘‘Office of Inspector 

20 General’’, $2,000,000, to remain available until September 

21 30, 2010. 


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AMDT. NO. 98 

1 UNITED STATES MARSHALS SERVICE

2 SALARIES AND EXPENSES

3 For an additional amount for ‘‘Salaries and Ex4 penses’’, $50,000,000, to remain available until September 

5 30, 2010. 

6 CONSTRUCTION

7 For an additional amount for ‘‘Construction’’, 

8 $125,000,000, to remain available until September 30, 

9 2010. 

10 FEDERAL BUREAU OF INVESTIGATION

11 SALARIES AND EXPENSES

12 For an additional amount for ‘‘Salaries and Ex13 penses’’, $75,000,000, to remain available until September 

14 30, 2010. 

15 CONSTRUCTION

16 For an additional amount for ‘‘Construction’’, 

17 $400,000,000, to remain available until September 30, 

18 2010. 

19 FEDERAL PRISON SYSTEM

20 BUILDINGS AND FACILITIES

21 For an additional amount for ‘‘Federal Prison Sys22 tem, Buildings and Facilities’’, $1,000,000,000, to remain 

23 available until September 30, 2010. 


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AMDT. NO. 98 

1 STATE AND LOCAL LAW ENFORCEMENT ACTIVITIES

2 OFFICE ON VIOLENCE AGAINST WOMEN

3 VIOLENCE AGAINST WOMEN PREVENTION AND

4 PROSECUTION PROGRAMS

5 For an additional amount for ‘‘Violence Against 

6 Women Prevention and Prosecution Programs’’, 

7 $300,000,000 for grants to combat violence against 

8 women, as authorized by part T of the Omnibus Crime 

9 Control and Safe Streets Act of 1968 (42 U.S.C. 3711 

10 et seq.): Provided, That, $50,000,000 shall be transitional 

11 housing assistance grants for victims of domestic violence, 

12 stalking or sexual assault as authorized by section 40299 

13 of the Violent Crime Control and Law Enforcement Act 

14 of 1994 (Public Law 103–322). 

15 OFFICE OF JUSTICE PROGRAMS

16 STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

17 For an additional amount for ‘‘State and Local Law 

18 Enforcement Assistance’’, $1,500,000,000 for the Edward 

19 Byrne Memorial Justice Assistance Grant program as au20 thorized by subpart 1 of part E of title I of the Omnibus 

21 Crime Control and Safe Street Act of 1968 (‘‘1968 Act’’), 

22 (except that section 1001(c), and the special rules for 

23 Puerto Rico under section 505(g), of the 1968 Act, shall 

24 not apply for purposes of this Act), to remain available 

25 until September 30, 2010. 


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AMDT. NO. 98 

1 For an additional amount for ‘‘State and Local Law 

2 Enforcement Assistance’’, $440,000,000 for competitive 

3 grants to improve the functioning of the criminal justice 

4 system, to assist victims of crime (other than compensa5 tion), and youth mentoring grants, to remain available 

6 until September 30, 2010. 

7 For an additional amount for ‘‘State and Local Law 

8 Enforcement Assistance’’, $100,000,000, to remain avail9 able until September 30, 2010, for competitive grants to 

10 provide assistance and equipment to local law enforcement 

11 along the Southern border and in High-Intensity Drug 

12 Trafficking Areas to combat criminal narcotics activity 

13 stemming from the Southern border, of which 

14 $10,000,000 shall be transferred to ‘‘Bureau of Alcohol, 

15 Tobacco, Firearms and Explosives, Salaries and Ex16 penses’’ for the ATF Project Gunrunner. 

17 For an additional amount for ‘‘State and Local Law 

18 Enforcement Assistance’’, $300,000,000, to remain avail19 able until September 30, 2010, for assistance to Indian 

20 tribes, notwithstanding Public Law 108–199, division B, 

21 title I, section 112(a)(1) (118 Stat. 62), of which— 

22 (1) $250,000,000 shall be available for grants 

23 under section 20109 of subtitle A of title II of the 

24 Violent Crime Control and Law Enforcement Act of 

25 1994 (Public Law 103–322); 


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AMDT. NO. 98 

1 (2) $25,000,000 shall be available for the Trib2 al Courts Initiative; and 

3 (3) $25,000,000 shall be available for tribal al4 cohol and substance abuse drug reduction assistance 

5 grants. 

6 For an additional amount for ‘‘State and Local Law 

7 Enforcement Assistance’’, $100,000,000, to remain avail8 able until September 30, 2010, to be distributed by the 

9 Office for Victims of Crime in accordance with section 

10 1402(d)(4) of the Victims of Crime Act of 1984 (Public 

11 Law 98–473). 

12 For an additional amount for ‘‘State and Local Law 

13 Enforcement Assistance’’, $150,000,000, to remain avail14 able until September 30, 2010, for assistance to law en15 forcement in rural areas, to prevent and combat crime, 

16 especially drug-related crime. 

17 For an additional amount for ‘‘State and Local Law 

18 Enforcement Assistance’’, $50,000,000, to remain avail19 able until September 30, 2010, for Internet Crimes 

20 Against Children (ICAC) initiatives. 

21 COMMUNITY ORIENTED POLICING SERVICES

22 For an additional amount for ‘‘Community Oriented 

23 Policing Services’’, for grants under section 1701 of title 

24 I of the 1968 Omnibus Crime Control and Safe Streets 

25 Act (42 U.S.C. 3796dd) for hiring and rehiring of addiVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00045 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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AMDT. NO. 98 

1 tional career law enforcement officers under part Q of 

2 such title, and civilian public safety personnel, notwith3 standing subsection (i) of such section and notwith4 standing 42 U.S.C. 3796dd–3(c), $1,000,000,000, to re5 main available until September 30, 2010. 

6 SALARIES AND EXPENSES

7 For an additional amount, not elsewhere specified in 

8 this title, for management and administration and over9 sight of programs within the Office on Violence Against 

10 Women, the Office of Justice Programs, and the Commu11 nity Oriented Policing Services Office, $10,000,000, to re12 main available until September 30, 2010. 

13 SCIENCE 

14 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

15 SCIENCE

16 For an additional amount for ‘‘Science’’, 

17 $500,000,000, to remain available until September 30, 

18 2010. 

19 AERONAUTICS

20 For an additional amount for ‘‘Aeronautics’’, 

21 $250,000,000, to remain available until September 30, 

22 2010. 

23 EXPLORATION

24 For an additional amount for ‘‘Exploration’’, 

25 $500,000,000, to remain available until September 30, 

26 2010. 


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AMDT. NO. 98 

1 CROSS AGENCY SUPPORT

2 For an additional amount for ‘‘Cross Agency Sup3 port’’, $250,000,000, to remain available until September 

4 30, 2010. 

5 OFFICE OF INSPECTOR GENERAL

6 For an additional amount for ‘‘Office of Inspector 

7 General’’, $2,000,000, to remain available until September 

8 30, 2010. 

9 NATIONAL SCIENCE FOUNDATION

10 RESEARCH AND RELATED ACTIVITIES

11 For an additional amount for ‘‘Research and Related 

12 Activities’’, $1,200,000,000, to remain available until Sep13 tember 30, 2010. 

14 MAJOR RESEARCH EQUIPMENT AND FACILITIES

15 CONSTRUCTION

16 For an additional amount for ‘‘Major Research 

17 Equipment and Facilities Construction’’, $150,000,000, 

18 to remain available until September 30, 2010. 

19 EDUCATION AND HUMAN RESOURCES

20 For an additional amount for ‘‘Education and 

21 Human Resources’’, $50,000,000, to remain available 

22 until September 30, 2010. 

23 OFFICE OF INSPECTOR GENERAL

24 For an additional amount for ‘‘Office of Inspector 

25 General’’, $2,000,000, to remain available until September 

26 30, 2010. 


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AMDT. NO. 98 

1 GENERAL PROVISIONS—THIS TITLE 

2 SEC. 201. The Assistant Secretary of Commerce for 

3 Communications and Information (Assistant Secretary), 

4 in consultation with the Federal Communications Com5 mission (Commission) (and, with respect to rural areas, 

6 the Secretary of Agriculture), shall establish a national 

7 broadband service development and expansion program in 

8 conjunction with the technology opportunities program, 

9 which shall be referred to the Broadband Technology Op10 portunities Program. The Assistant Secretary shall ensure 

11 that the program complements and enhances and does not 

12 conflict with other Federal broadband initiatives and pro13 grams. 

14 (1) The purposes of the program are to— 

15 (A) provide access to broadband service to 

16 citizens residing in unserved areas of the 

17 United States; 

18 (B) provide improved access to broadband 

19 service to citizens residing in underserved areas 

20 of the United States; 

21 (C) provide broadband education, aware22 ness, training, access, equipment, and support 

23 to— 

24 (i) schools, libraries, medical and 

25 healthcare providers, community colleges 


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AMDT. NO. 98 

1 and other institutions of higher education, 

2 and other community support organiza3 tions and entities to facilitate greater use 

4 of broadband service by or through these 

5 organizations; 

6 (ii) organizations and agencies that 

7 provide outreach, access, equipment, and 

8 support services to facilitate greater use of 

9 broadband service by low-income, unem10 ployed, aged, and otherwise vulnerable pop11 ulations; and 

12 (iii) job-creating strategic facilities lo13 cated within a State-designated economic 

14 zone, Economic Development District des15 ignated by the Department of Commerce, 

16 Renewal Community or Empowerment 

17 Zone designated by the Department of 

18 Housing and Urban Development, or En19 terprise Community designated by the De20 partment of Agriculture. 

21 (D) improve access to, and use of, 

22 broadband service by public safety agencies; 

23 and 

24 (E) stimulate the demand for broadband, 

25 economic growth, and job creation. 


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AMDT. NO. 98 

1 (2) The Assistant Secretary may consult with 

2 the chief executive officer of any State with respect 

3 to— 

4 (A) the identification of areas described in 

5 subsection (1)(A) or (B) located in that State; 

6 and 

7 (B) the allocation of grant funds within 

8 that State for projects in or affecting the State. 

9 (3) The Assistant Secretary shall— 

10 (A) establish and implement the grant pro11 gram as expeditiously as practicable; 

12 (B) ensure that all awards are made before 

13 the end of fiscal year 2010; 

14 (C) seek such assurances as may be nec15 essary or appropriate from grantees under the 

16 program that they will substantially complete 

17 projects supported by the program in accord18 ance with project timelines, not to exceed 2 

19 years following an award; and 

20 (D) report on the status of the program to 

21 the Committees on Appropriations of the House 

22 and the Senate, the Committee on Energy and 

23 Commerce of the House, and the Committee on 

24 Commerce, Science, and Transportation of the 

25 Senate, every 90 days. 


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AMDT. NO. 98 

1 (4) To be eligible for a grant under the pro2 gram an applicant shall— 

3 (A) be a State or political subdivision 

4 thereof, a nonprofit foundation, corporation, in5 stitution or association, Indian tribe, Native 

6 Hawaiian organization, or other non-govern7 mental entity in partnership with a State or po8 litical subdivision thereof, Indian tribe, or Na9 tive Hawaiian organization if the Assistant Sec10 retary determines the partnership consistent 

11 with the purposes this section; 

12 (B) submit an application, at such time, in 

13 such form, and containing such information as 

14 the Assistant Secretary may require; 

15 (C) provide a detailed explanation of how 

16 any amount received under the program will be 

17 used to carry out the purposes of this section 

18 in an efficient and expeditious manner, includ19 ing a demonstration that the project would not 

20 have been implemented during the grant period 

21 without Federal grant assistance; 

22 (D) demonstrate, to the satisfaction of the 

23 Assistant Secretary, that it is capable of car24 rying out the project or function to which the 

25 application relates in a competent manner in 


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AMDT. NO. 98 

1 compliance with all applicable Federal, State, 

2 and local laws; 

3 (E) demonstrate, to the satisfaction of the 

4 Assistant Secretary, that it will appropriate (if 

5 the applicant is a State or local government 

6 agency) or otherwise unconditionally obligate, 

7 from non-Federal sources, funds required to 

8 meet the requirements of paragraph (5); 

9 (F) disclose to the Assistant Secretary the 

10 source and amount of other Federal or State 

11 funding sources from which the applicant re12 ceives, or has applied for, funding for activities 

13 or projects to which the application relates; and 

14 (G) provide such assurances and proce15 dures as the Assistant Secretary may require to 

16 ensure that grant funds are used and accounted 

17 for in an appropriate manner. 

18 (5) The Federal share of any project may not 

19 exceed 80 percent, except that the Assistant Sec20 retary may increase the Federal share of a project 

21 above 80 percent if— 

22 (A) the applicant petitions the Assistant 

23 Secretary for a waiver; and 

24 (B) the Assistant Secretary determines 

25 that the petition demonstrates financial need. 


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AMDT. NO. 98 

1 (6) The Assistant Secretary may make competi2 tive grants under the program to— 

3 (A) acquire equipment, instrumentation, 

4 networking capability, hardware and software, 

5 digital network technology, and infrastructure 

6 for broadband services; 

7 (B) construct and deploy broadband serv8 ice related infrastructure; 

9 (C) ensure access to broadband service by 

10 community anchor institutions; 

11 (D) facilitate access to broadband service 

12 by low-income, unemployed, aged, and otherwise 

13 vulnerable populations in order to provide edu14 cational and employment opportunities to mem15 bers of such populations; 

16 (E) construct and deploy broadband facili17 ties that improve public safety broadband com18 munications services; and 

19 (F) undertake such other projects and ac20 tivities as the Assistant Secretary finds to be 

21 consistent with the purposes for which the pro22 gram is established. 

23 (7) The Assistant Secretary— 

24 (A) shall require any entity receiving a 

25 grant pursuant to this section to report quarVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00053 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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AMDT. NO. 98 

1 terly, in a format specified by the Assistant 

2 Secretary, on such entity’s use of the assistance 

3 and progress fulfilling the objectives for which 

4 such funds were granted, and the Assistant 

5 Secretary shall make these reports available to 

6 the public; 

7 (B) may establish additional reporting and 

8 information requirements for any recipient of 

9 any assistance made available pursuant to this 

10 section; 

11 (C) shall establish appropriate mechanisms 

12 to ensure appropriate use and compliance with 

13 all terms of any use of funds made available 

14 pursuant to this section; 

15 (D) may, in addition to other authority 

16 under applicable law, deobligate awards to 

17 grantees that demonstrate an insufficient level 

18 of performance, or wasteful or fraudulent 

19 spending, as defined in advance by the Assist20 ant Secretary, and award these funds competi21 tively to new or existing applicants consistent 

22 with this section; and 

23 (E) shall create and maintain a fully 

24 searchable database, accessible on the Internet 

25 at no cost to the public, that contains at least 


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AMDT. NO. 98 

1 the name of each entity receiving funds made 

2 available pursuant to this section, the purpose 

3 for which such entity is receiving such funds, 

4 each quarterly report submitted by the entity 

5 pursuant to this section, and such other infor6 mation sufficient to allow the public to under7 stand and monitor grants awarded under the 

8 program. 

9 (8) Concurrent with the issuance of the Request 

10 for Proposal for grant applications pursuant to this 

11 section, the Assistant Secretary shall, in coordina12 tion with the Federal Communications Commission, 

13 publish the non-discrimination and network inter14 connection obligations that shall be contractual con15 ditions of grants awarded under this section. 

16 (9) Within 1 year after the date of enactment 

17 of this Act, the Commission shall complete a rule18 making to develop a national broadband plan. In de19 veloping the plan, the Commission shall— 

20 (A) consider the most effective and effi21 cient national strategy for ensuring that all 

22 Americans have access to, and take advantage 

23 of, advanced broadband services; 


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AMDT. NO. 98 

1 (B) have access to data provided to other 

2 Government agencies under the Broadband 

3 Data Improvement Act (47 U.S.C. 1301 note); 

4 (C) evaluate the status of deployments of 

5 broadband service, including the progress of 

6 projects supported by the grants made pursuant 

7 to this section; and 

8 (D) develop recommendations for achieving 

9 the goal of nationally available broadband serv10 ice for the United States and for promoting 

11 broadband adoption nationwide. 

12 (10) The Assistant Secretary shall develop and 

13 maintain a comprehensive nationwide inventory map 

14 of existing broadband service capability and avail15 ability in the United States that entities and depicts 

16 the geographic extent to which broadband service ca17 pability is deployed and available from a commercial 

18 provider or public provider throughout each State: 

19 Provided, That not later than 2 years after the date 

20 of the enactment of the Act, the Assistant Secretary 

21 shall make the broadband inventory map developed 

22 and maintained pursuant to this section accessible to 

23 the public. 

24 SEC. 202. The Assistant Secretary of Commerce for 

25 Communications and Information may reissue any coupon 


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AMDT. NO. 98 

1 issued under section 3005(a) of the Digital Television 

2 Transition and Public Safety Act of 2005 that has expired 

3 before use, and shall cancel any unredeemed coupon re4 ported as lost and may issue a replacement coupon for 

5 the lost coupon. 

6 TITLE III—DEPARTMENT OF DEFENSE 

7 OPERATION AND MAINTENANCE 

8 OPERATION AND MAINTENANCE, ARMY

9 For an additional amount for ‘‘Operation and Main10 tenance, Army’’, $1,169,291,000, to remain available for 

11 obligation until September 30, 2010. 

12 OPERATION AND MAINTENANCE, NAVY

13 For an additional amount for ‘‘Operation and Main14 tenance, Navy’’, $571,843,000, to remain available for ob15 ligation until September 30, 2010. 

16 OPERATION AND MAINTENANCE, MARINE CORPS

17 For an additional amount for ‘‘Operation and Main18 tenance, Marine Corps’’, $112,167,000, to remain avail19 able for obligation until September 30, 2010. 

20 OPERATION AND MAINTENANCE, AIR FORCE

21 For an additional amount for ‘‘Operation and Main22 tenance, Air Force’’, $927,113,000, to remain available 

23 for obligation until September 30, 2010. 


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AMDT. NO. 98 

1 OPERATION AND MAINTENANCE, ARMY RESERVE

2 For an additional amount for ‘‘Operation and Main3 tenance, Army Reserve’’, $79,543,000, to remain available 

4 for obligation until September 30, 2010. 

5 OPERATION AND MAINTENANCE, NAVY RESERVE

6 For an additional amount for ‘‘Operation and Main7 tenance, Navy Reserve’’, $44,586,000, to remain available 

8 for obligation until September 30, 2010. 

9 OPERATION AND MAINTENANCE, MARINE CORPS

10 RESERVE

11 For an additional amount for ‘‘Operation and Main12 tenance, Marine Corps Reserve’’, $32,304,000, to remain 

13 available for obligation until September 30, 2010. 

14 OPERATION AND MAINTENANCE, AIR FORCE RESERVE

15 For an additional amount for ‘‘Operation and Main16 tenance, Air Force Reserve’’, $10,674,000, to remain 

17 available for obligation until September 30, 2010. 

18 OPERATION AND MAINTENANCE, ARMY NATIONAL

19 GUARD

20 For an additional amount for ‘‘Operation and Main21 tenance, Army National Guard’’, $215,557,000, to remain 

22 available for obligation until September 30, 2010. 


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AMDT. NO. 98 

1 OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

2 For an additional amount for ‘‘Operation and Main3 tenance, Air National Guard’’, $20,922,000, to remain 

4 available for obligation until September 30, 2010. 

5 PROCUREMENT 

6 DEFENSE PRODUCTION ACT PURCHASES

7 For an additional amount for ‘‘Defense Production 

8 Act Purchases’’, $100,000,000, to remain available for ob9 ligation until September 30, 2010. 

10 RESEARCH, DEVELOPMENT, TEST AND 

11 EVALUATION 

12 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, 

13 DEFENSE-WIDE

14 For an additional amount for ‘‘Research, Develop15 ment, Test and Evaluation, Defense-Wide’’, 

16 $200,000,000, to remain available for obligation until Sep17 tember 30, 2010. 

18 OTHER DEPARTMENT OF DEFENSE PROGRAMS 

19 DEFENSE HEALTH PROGRAM

20 For an additional amount for ‘‘Defense Health Pro21 gram’’, $250,000,000 for operation and maintenance, to 

22 remain available for obligation until September 30, 2010. 


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AMDT. NO. 98 

1 OFFICE OF THE INSPECTOR GENERAL

2 For an additional amount for ‘‘Office of the Inspector 

3 General’’, $12,000,000 for operation and maintenance, to 

4 remain available for obligation until September 30, 2010. 

5 TITLE IV—ENERGY AND WATER 

6 DEVELOPMENT 

7 DEPARTMENT OF DEFENSE—CIVIL 

8 DEPARTMENT OF THE ARMY

9 CORPS OF ENGINEERS—CIVIL

10 INVESTIGATIONS

11 For an additional amount for ‘‘Investigations’’ for ex12 penses necessary where authorized by law for the collec13 tion and study of basic information pertaining to river and 

14 harbor, flood and storm damage reduction, shore protec15 tion, aquatic ecosystem restoration, and related needs; for 

16 surveys and detailed studies, and plans and specifications 

17 of proposed river and harbor, flood and storm damage re18 duction, shore protection, and aquatic ecosystem restora19 tion projects and related efforts prior to construction; for 

20 restudy of authorized projects; and for miscellaneous in21 vestigations and, when authorized by law, surveys and de22 tailed studies, and plans and specifications of projects 

23 prior to construction, $25,000,000: Provided, That funds 

24 provided under this heading in this title shall only be used 

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1 after receive funds provided in Acts making appropriations 

2 available for Energy and Water Development: Provided 

3 further, That funds provided under this heading in this 

4 title shall be used for programs, projects or activities or 

5 elements of programs, projects or activities that can be 

6 completed within the funds made available in that account 

7 and that will not require new budget authority to com8 plete: Provided further, That for projects that are being 

9 completed with funds appropriated in this Act that would 

10 otherwise be expired for obligation, expired funds appro11 priated in this Act may be used to pay the cost of associ12 ated supervision, inspection, over engineering and design 

13 on those projects and on subsequent claims, if any: Pro14 vided further, That the Secretary shall have unlimited re15 programming authority for these funds provided under 

16 this heading. 

17 CONSTRUCTION

18 For an additional amount for ‘‘Construction’’ for ex19 penses necessary for the construction of river and harbor, 

20 flood and storm damage reduction, shore protection, 

21 aquatic ecosystem restoration, and related projects au22 thorized by law, $2,000,000,000, of which such sums as 

23 are necessary to cover the Federal share of construction 

24 costs for facilities under the Dredged Material Disposal 

25 Facilities program shall be derived from the Harbor Main26 tenance Trust Fund as authorized by Public Law 104– 


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AMDT. NO. 98 

1 303: Provided, That not less than $200,000,000 of the 

2 funds provided shall be for water-related environmental in3 frastructure assistance: Provided further, That section 102 

4 of Public Law 109–103 (33 U.S.C. 2221) shall not apply 

5 to funds provided in this title: Provided further, That not6 withstanding any other provision of law, no funds shall 

7 be drawn from the Inland Waterways Trust Fund, as au8 thorized in Public Law 99–662: Provided further, That 

9 funds provided under this heading in this title shall only 

10 be used for programs, projects or activities that heretofore 

11 or hereafter receive funds provided in Acts making appro12 priations available for Energy and Water Development: 

13 Provided further, That funds provided under this heading 

14 in this title shall be used for programs, projects or activi15 ties or elements of programs, projects or activities that 

16 can be completed within the funds made available in that 

17 account and that will not require new budget authority 

18 to complete: Provided further, That the limitation con19 cerning total project costs in section 902 of the Water Re20 sources Development Act of 1986, as amended (33 U.S.C. 

21 2280), shall not apply during fiscal year 2009 to any 

22 project that received funds provided in this title: Provided 

23 further, That funds appropriated under this heading may 

24 be used by the Secretary of the Army, acting through the 

25 Chief of Engineers, to undertake work authorized to be 


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AMDT. NO. 98 

1 carried out in accordance with section 14 of the Flood 

2 Control Act of 1946 (33 U.S.C. 701r); section 205 of the 

3 Flood Control Act of 1948 (33 U.S.C. 701s); section 206 

4 of the Water Resources Development Act of 1996 (33 

5 U.S.C. 2330); or section 1135 of the Water Resources De6 velopment Act of 1986 (33 U.S.C. 2309a), notwith7 standing the program cost limitations set forth in those 

8 sections: Provided further, That for projects that are being 

9 completed with funds appropriated in this Act that would 

10 otherwise be expired for obligation, expired funds appro11 priated in this Act may be used to pay the cost of associ12 ated supervision, inspection, over engineering and design 

13 on those projects and on subsequent claims, if any: Pro14 vided further, That the Secretary shall have unlimited re15 programming authority for these funds provided under 

16 this heading. 

17 MISSISSIPPI RIVER AND TRIBUTARIES

18 For an additional amount for ‘‘Mississippi River and 

19 Tributaries’’ for expenses necessary for flood damage re20 duction projects and related efforts as authorized by law, 

21 $500,000,000, of which such sums as are necessary to 

22 cover the Federal share of operation and maintenance 

23 costs for inland harbors shall be derived from the Harbor 

24 Maintenance Trust Fund, pursuant to Public Law 99– 

25 662: Provided, That funds provided under this heading in 

26 this title shall only be used for programs, projects or acVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00063 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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AMDT. NO. 98 

1 tivities that heretofore or hereafter receive funds provided 

2 in Acts making appropriations available for Energy and 

3 Water Development: Provided further, That funds pro4 vided under this heading in this title shall be used for pro5 grams, projects or activities or elements of programs, 

6 projects or activities that can be completed within the 

7 funds made available in that account and that will not re8 quire new budget authority to complete: Provided further, 

9 That the limitation concerning total project costs in sec10 tion 902 of the Water Resources Development Act of 

11 1986, as amended (33 U.S.C. 2280), shall not apply dur12 ing fiscal year 2009 to any project that received funds pro13 vided in this title: Provided further, That for projects that 

14 are being completed with funds appropriated in this Act 

15 that would otherwise be expired for obligation, expired 

16 funds appropriated in this Act may be used to pay the 

17 cost of associated supervision, inspection, over engineering 

18 and design on those projects and on subsequent claims, 

19 if any: Provided further, That the Secretary shall have un20 limited reprogramming authority for these funds provided 

21 under this heading. 

22 OPERATION AND MAINTENANCE

23 For an additional amount for ‘‘Operation and Main24 tenance’’ for expenses necessary for the operation, mainte25 nance, and care of existing river and harbor, flood and 

26 storm damage reduction, aquatic ecosystem restoration, 


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AMDT. NO. 98 

1 and related projects authorized by law, and for surveys 

2 and charting of northern and northwestern lakes and con3 necting waters, clearing and straightening channels, and 

4 removal of obstructions to navigation, $1,900,000,000, of 

5 which such sums as are necessary to cover the Federal 

6 share of operation and maintenance costs for coastal har7 bors and channels, and inland harbors shall be derived 

8 from the Harbor Maintenance Trust Fund, pursuant to 

9 Public Law 99–662; and of which such sums as become 

10 available under section 217 of the Water Resources Devel11 opment Act of 1996, Public Law 104–303, shall be used 

12 to cover the cost of operation and maintenance of the 

13 dredged material disposal facilities for which fees have 

14 been collected: Provided, That funds provided under this 

15 heading in this title shall only be used for programs, 

16 projects or activities that heretofore or hereafter receive 

17 funds provided in Acts making appropriations available for 

18 Energy and Water Development: Provided further, That 

19 funds provided under this heading in this title shall be 

20 used for programs, projects or activities or elements of 

21 programs, projects or activities that can be completed 

22 within the funds made available in that account and that 

23 will not require new budget authority to complete: Pro24 vided further, That $90,000,000 of the funds provided 

25 under this heading shall be used for activities described 


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AMDT. NO. 98 

1 in section 9004 of Public Law 110–114: Provided further, 

2 That section 9006 of Public Law 110–114 shall not apply 

3 to funds provided in this title: Provided further, That for 

4 projects that are being completed with funds appropriated 

5 in this Act that would otherwise be expired for obligation, 

6 expired funds appropriated in this Act may be used to pay 

7 the cost of associated supervision, inspection, over engi8 neering and design on those projects and on subsequent 

9 claims, if any: Provided further, That the Secretary shall 

10 have unlimited reprogramming authority for these funds 

11 provided under this heading. 

12 REGULATORY PROGRAM

13 For an additional amount for ‘‘Regulatory Program’’ 

14 for expenses necessary for administration of laws per15 taining to regulation of navigable waters and wetlands, 

16 $25,000,000 is provided. 

17 FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAM

18 For an additional amount for ‘‘Formerly Utilized 

19 Sites Remedial Action Program’’ for expenses necessary 

20 to clean up contamination from sites in the United States 

21 resulting from work performed as part of the Nation’s 

22 early atomic energy program, $100,000,000: Provided fur23 ther, That funds provided under this heading in this title 

24 shall be used for programs, projects or activities or ele25 ments of programs, projects or activities that can be com26 pleted within the funds made available in that account and 


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AMDT. NO. 98 

1 that will not require new budget authority to complete: 

2 Provided further, That for projects that are being com3 pleted with funds appropriated in this Act that would oth4 erwise be expired for obligation, expired funds appro5 priated in this Act may be used to pay the cost of associ6 ated supervision, inspection, over engineering and design 

7 on those projects and on subsequent claims, if any: Pro8 vided further, That the Secretary shall have unlimited re9 programming authority for these funds provided under 

10 this heading. 

11 FLOOD CONTROL AND COASTAL EMERGENCIES

12 For an additional amount for ‘‘Flood Control and 

13 Coastal Emergencies’’ for expenses necessary for pre14 placement of materials and equipment, advance measures 

15 and other activities authorized by law, $50,000,000 is pro16 vided. 

17 DEPARTMENT OF THE INTERIOR 

18 BUREAU OF RECLAMATION

19 WATER AND RELATED RESOURCES

20 For an additional amount for management, develop21 ment, and restoration of water and related natural re22 sources and for related activities, including the operation, 

23 maintenance, and rehabilitation of reclamation and other 

24 facilities, participation in fulfilling related Federal respon25 sibilities to Native Americans, and related grants to, and 

26 cooperative and other agreements with, State and local 


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AMDT. NO. 98 

1 governments, federally recognized Indian tribes, and oth2 ers, $1,400,000,000; of which such amounts as may be 

3 necessary may be advanced to the Colorado River Dam 

4 Fund: Provided, That of the total appropriated, the 

5 amount for program activities that can be financed by the 

6 Reclamation Fund or the Bureau of Reclamation special 

7 fee account established by 16 U.S.C. 460l–6a(i) shall be 

8 derived from that Fund or account: Provided further, That 

9 funds contributed under 43 U.S.C. 395 are available until 

10 expended for the purposes for which contributed: Provided 

11 further, That funds advanced under 43 U.S.C. 397a shall 

12 be credited to this account and are available until ex13 pended for the same purposes as the sums appropriated 

14 under this heading: Provided further, That funds provided 

15 under this heading in this title shall only be used for pro16 grams, projects or activities that heretofore or hereafter 

17 receive funds provided in Acts making appropriations 

18 available for Energy and Water Development: Provided 

19 further, That funds provided in this Act shall be used for 

20 elements of projects, programs or activities that can be 

21 completed within these funding amounts and not create 

22 budgetary obligations in future fiscal years: Provided fur23 ther, That $50,000,000 of the funds provided under this 

24 heading may be transferred to the Department of the Inte25 rior for programs, projects and activities authorized by the 


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AMDT. NO. 98 

1 Central Utah Project Completion Act (titles II–V of Public 

2 Law 102–575): Provided further, That $50,000,000 of the 

3 funds provided under this heading may be used for pro4 grams, projects, and activities authorized by the California 

5 Bay-Delta Restoration Act (Public Law 108–361): Pro6 vided further, That not less than $60,000,000 of the funds 

7 provided under this heading shall be used for rural water 

8 projects and shall be expended primarily on water intake 

9 and treatment facilities of such projects: Provided further, 

10 That not less than $10,000,000 of the funds provided 

11 under this heading shall be used for a bureau-wide inspec12 tion of canals program in urbanized areas: Provided fur13 ther, That not less than $110,000,000 of the funds pro14 vided under this heading shall be used for water reclama15 tion and reuse projects (title 16 of Public Law 102–575): 

16 Provided further, That the costs of reimbursable activities, 

17 other than for maintenance and rehabilitation, carried out 

18 with funds provided in this Act shall be repaid pursuant 

19 to existing authorities and agreements: Provided further, 

20 That the costs of maintenance and rehabilitation activities 

21 carried out with funds provided in this Act shall be repaid 

22 pursuant to existing authority, except the length of repay23 ment period shall be determined on needs-based criteria 

24 to be established and adopted by the Commissioner, but 

25 in no case shall the repayment period exceed 25 years: 


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AMDT. NO. 98 

1 Provided further, That for projects that are being com2 pleted with funds appropriated in this Act that would oth3 erwise be expired for obligation, expired funds appro4 priated in this Act may be used to pay the cost of associ5 ated supervision, inspection, over engineering and design 

6 on those projects and on subsequent claims, if any: Pro7 vided further, That the Secretary shall have unlimited re8 programming authority for these funds provided under 

9 this heading. 

10 DEPARTMENT OF ENERGY 

11 ENERGY PROGRAMS

12 ENERGY EFFICIENCY AND RENEWABLE ENERGY

13 For an additional amount for ‘‘Energy Efficiency and 

14 Renewable Energy’’, $14,398,000,000, for necessary ex15 penses, to remain available until September 30, 2010: Pro16 vided, That $4,200,000,000 shall be available for Energy 

17 Efficiency and Conservation Block Grants for implementa18 tion of programs authorized under subtitle E of title V 

19 of the Energy Independence and Security Act of 2007 (42 

20 U.S.C. 17151 et seq.), of which $2,100,000,000 is avail21 able through the formula in subtitle E: Provided further, 

22 That the remaining $2,100,000,000 shall be awarded on 

23 a competitive basis only to competitive grant applicants 

24 from States in which the Governor certifies to the Sec25 retary of Energy that the applicable State regulatory auVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00070 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 thority will implement the integrated resource planning 

2 and rate design modifications standards required to be 

3 considered under paragraphs (16) and (17) of section 

4 111(d) of the Public Utility Regulatory Policies Act of 

5 1978 (16 U.S.C. 2621(d)(16) and (17)); and the Governor 

6 will take all actions within his or her authority to ensure 

7 that the State, or the applicable units of local government 

8 that have authority to adopt building codes, will imple9 ment— 

10 (A) building energy codes for residential build11 ings that the Secretary determines are likely to meet 

12 or exceed the 2009 International Energy Conserva13 tion Code; 

14 (B) building energy codes for commercial build15 ings that the Secretary determines are likely to meet 

16 or exceed the ANSI/ASHRAE/IESNA Standard 

17 90.1–2007; and 

18 (C) a plan for implementing and enforcing the 

19 building energy codes described in subparagraphs 

20 (A) and (B) that is likely to ensure that at least 90 

21 percent of the new and renovated residential and 

22 commercial building space will meet the standards 

23 within 8 years after the date of enactment of this 

24 Act: 


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1 Provided further, That $2,000,000,000 shall be available 

2 for grants for the manufacturing of advanced batteries 

3 and components and the Secretary shall provide facility 

4 funding awards under this section to manufacturers of ad5 vanced battery systems and vehicle batteries that are pro6 duced in the United States, including advanced lithium ion 

7 batteries, hybrid electrical systems, component manufac8 turers, and software designers: Provided further, That not9 withstanding section 3304 of title 5, United States Code, 

10 and without regard to the provisions of sections 3309 

11 through 3318 of such title 5, the Secretary of Energy, 

12 upon a determination that there is a severe shortage of 

13 candidates or a critical hiring need for particular posi14 tions, may from within the funds provided, recruit and di15 rectly appoint highly qualified individuals into the com16 petitive service: Provided further, That such authority 

17 shall not apply to positions in the Excepted Service or the 

18 Senior Executive Service: Provided further, That any ac19 tion authorized herein shall be consistent with the merit 

20 principles of section 2301 of such title 5, and the Depart21 ment shall comply with the public notice requirements of 

22 section 3327 of such title 5. 

23 ELECTRICITY DELIVERY AND ENERGY RELIABILITY

24 For an additional amount for ‘‘Electricity Delivery 

25 and Energy Reliability’’, $4,500,000,000, for necessary 


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AMDT. NO. 98 

1 expenses, to remain available until September 30, 2010: 

2 Provided, That $100,000,000 shall be available for worker 

3 training activities: Provided further, That notwithstanding 

4 section 3304 of title 5, United States Code, and without 

5 regard to the provisions of sections 3309 through 3318 

6 of such title 5, the Secretary of Energy, upon a determina7 tion that there is a severe shortage of candidates or a crit8 ical hiring need for particular positions, may from within 

9 the funds provided, recruit and directly appoint highly 

10 qualified individuals into the competitive service: Provided 

11 further, That such authority shall not apply to positions 

12 in the Excepted Service or the Senior Executive Service: 

13 Provided further, That any action authorized herein shall 

14 be consistent with the merit principles of section 2301 of 

15 such title 5, and the Department shall comply with the 

16 public notice requirements of section 3327 of such title 

17 5: Provided, That for the purpose of facilitating the devel18 opment of regional transmission plans, the Office of Elec19 tricity Delivery and Energy Reliability within the Depart20 ment of Energy is provided $80,000,000 within the avail21 able funds to conduct a resource assessment and an anal22 ysis of future demand and transmission requirements: 

23 Provided further, That the Office of Electricity Delivery 

24 and Energy Reliability will provide technical assistance to 

25 the North American Electric Reliability Corporation, the 


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1 regional reliability entities, the States, and other trans2 mission owners and operators for the formation of inter3 connection-based transmission plans for the Eastern and 

4 Western Interconnections and ERCOT: Provided further, 

5 That such assistance may include modeling, support to re6 gions and States for the development of coordinated State 

7 electricity policies, programs, laws, and regulations: Pro8 vided further, That $10,000,000 is provided to implement 

9 section 1305 of Public Law 110–140. 

10 FOSSIL ENERGY RESEARCH AND DEVELOPMENT

11 For an additional amount for ‘‘Fossil Energy Re12 search and Development’’, $4,600,000,000, to remain 

13 available until September 30, 2010: Provided, That 

14 $2,000,000,000 is available for one or more near zero 

15 emissions powerplant(s): Provided further, $1,000,000,000 

16 is available for selections under the Department’s Clean 

17 Coal Power Initiative Round III Funding Opportunity An18 nouncement; notwithstanding the mandatory eligibility re19 quirements of the Funding Opportunity Announcement, 

20 the Department shall consider applications that utilize pe21 troleum coke for some or all of the project’s fuel input: 

22 Provided further, $1,520,000,000 is available for a com23 petitive solicitation pursuant to section 703 of Public Law 

24 110–140 for projects that demonstrate carbon capture 

25 from industrial sources: Provided further, That awards for 


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1 such projects may include plant efficiency improvements 

2 for integration with carbon capture technology. 

3 NON-DEFENSE ENVIRONMENTAL CLEANUP

4 For an additional amount for ‘‘Non-Defense Environ5 mental Cleanup’’, $483,000,000, to remain available until 

6 September 30, 2010. 

7 URANIUM ENRICHMENT DECONTAMINATION AND

8 DECOMMISSIONING FUND

9 For an additional amount for ‘‘Uranium Enrichment 

10 Decontamination and Decommissioning Fund’’, 

11 $390,000,000, to remain available until September 30, 

12 2010, of which $70,000,000 shall be available in accord13 ance with title X, subtitle A of the Energy Policy Act of 

14 1992. 

15 SCIENCE

16 For an additional amount for ‘‘Science’’, 

17 $430,000,000, to remain available until September 30, 

18 2010. 

19 TITLE 17—INNOVATIVE TECHNOLOGY LOAN

20 GUARANTEE PROGRAM

21 Subject to section 502 of the Congressional Budget 

22 Act of 1974, commitments to guarantee loans under sec23 tion 1702(b)(2) of the Energy Policy Act of 2005, shall 

24 not exceed a total principal amount of $50,000,000,000 

25 for eligible projects, to remain available until committed: 


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1 Provided, That these amounts are in addition to any au2 thority provided elsewhere in this Act and this and pre3 vious fiscal years: Provided further, That such sums as are 

4 derived from amounts received from borrowers pursuant 

5 to section 1702(b)(2) of the Energy Policy Act of 2005 

6 under this heading in this and prior Acts, shall be collected 

7 in accordance with section 502(7) of the Congressional 

8 Budget Act of 1974: Provided further, That the source of 

9 such payment received from borrowers is not a loan or 

10 other debt obligation that is guaranteed by the Federal 

11 Government: Provided further, That pursuant to section 

12 1702(b)(2) of the Energy Policy Act of 2005, no appro13 priations are available to pay the subsidy cost of such 

14 guarantees: Provided further, That none of the loan guar15 antee authority made available in this Act shall be avail16 able for commitments to guarantee loans under section 

17 1702(b)(2) of the Energy Policy Act of 2005 for any 

18 projects where funds, personnel, or property (tangible or 

19 intangible) of any Federal agency, instrumentality, per20 sonnel or affiliated entity are expected to be used (directly 

21 or indirectly) through acquisitions, contracts, demonstra22 tions, exchanges, grants, incentives, leases, procurements, 

23 sales, other transaction authority, or other arrangements, 

24 to support the project or to obtain goods or services from 

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1 antee authority made available in this Act shall be avail2 able under section 1702(b)(2) of the Energy Policy Act 

3 of 2005 for any project unless the Director of the Office 

4 of Management and Budget has certified in advance in 

5 writing that the loan guarantee and the project comply 

6 with the provisions under this title: Provided further, That 

7 for an additional amount for the cost of guaranteed loans 

8 authorized by section 1702(b)(1) and section 1705 of the 

9 Energy Policy Act of 2005, $9,500,000,000, available 

10 until expended, to pay the costs of guarantees made under 

11 this section: Provided further, That of the amount pro12 vided for Title XVII, $15,000,000 shall be used for admin13 istrative expenses in carrying out the guaranteed loan pro14 gram. 

15 OFFICE OF THE INSPECTOR GENERAL

16 For necessary expenses of the Office of the Inspector 

17 General in carrying out the provisions of the Inspector 

18 General Act of 1978, as amended, $5,000,000, to remain 

19 available until expended. 

20 ATOMIC ENERGY DEFENSE ACTIVITIES 

21 NATIONAL NUCLEAR SECURITY ADMINISTRATION

22 WEAPONS ACTIVITIES

23 For an additional amount for weapons activities, 

24 $1,000,000,000, to remain available until September 30, 

25 2010. 


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AMDT. NO. 98 

1 ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

2 DEFENSE ENVIRONMENTAL CLEANUP

3 For an additional amount for ‘‘Defense Environ4 mental Cleanup’’, $5,527,000,000, to remain available 

5 until September 30, 2010. 

6 CONSTRUCTION, REHABILITATION, OPERATION, AND

7 MAINTENANCE, WESTERN AREA POWER ADMINIS8 TRATION

9 For carrying out the functions authorized by title III, 

10 section 302(a)(1)(E) of the Act of August 4, 1977 (42 

11 U.S.C. 7152), and other related activities including con12 servation and renewable resources programs as author13 ized, $10,000,000, to remain available until expended: 

14 Provided, That the Administrator shall establish such per15 sonnel staffing levels as he deems necessary to economi16 cally and efficiently complete the activities pursued under 

17 the authority granted by section 402 of this Act: Provided 

18 further, That this appropriation is non-reimbursable. 

19 GENERAL PROVISIONS—THIS TITLE 

20 SEC. 401. BONNEVILLE POWER ADMINISTRATION

21 BORROWING AUTHORITY. For the purposes of providing 

22 funds to assist in financing the construction, acquisition, 

23 and replacement of the transmission system of the Bonne24 ville Power Administration and to implement the authority 

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1 tion under the Pacific Northwest Electric Power Planning 

2 and Conservation Act (16 U.S.C. 839 et seq.), an addi3 tional $3,250,000,000 in borrowing authority is made 

4 available under the Federal Columbia River Transmission 

5 System Act (16 U.S.C. 838 et seq.), to remain outstanding 

6 at any time. 

7 SEC. 402. WESTERN AREA POWER ADMINISTRATION

8 BORROWING AUTHORITY. The Hoover Power Plant Act of 

9 1984 (Public Law 98–381) is amended by adding at the 

10 end the following: 

11 ‘‘TITLE III—BORROWING 

12 AUTHORITY 

13 ‘‘SEC. 301. WESTERN AREA POWER ADMINISTRATION BOR14 ROWING AUTHORITY. 

15 ‘‘(a) DEFINITIONS.—In this section: 

16 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis17 trator’ means the Administrator of the Western 

18 Area Power Administration. 

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

20 the Secretary of the Treasury. 

21 ‘‘(b) AUTHORITY.— 

22 ‘‘(1) IN GENERAL.—Notwithstanding any other 

23 provision of law, subject to paragraphs (2) through 

24 (5)— 


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1 ‘‘(A) the Western Area Power Administra2 tion may borrow funds from the Treasury; and 

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

4 appropriation and without fiscal year limitation, 

5 loan to the Western Area Power Administra6 tion, on such terms as may be fixed by the Ad7 ministrator and the Secretary, such sums (not 

8 to exceed, in the aggregate (including deferred 

9 interest), $3,250,000,000 in outstanding repay10 able balances at any one time) as, in the judg11 ment of the Administrator, are from time to 

12 time required for the purpose of— 

13 ‘‘(i) constructing, financing, facili14 tating, planning, operating, maintaining, 

15 or studying construction of new or up16 graded electric power transmission lines 

17 and related facilities with at least one ter18 minus within the area served by the West19 ern Area Power Administration; and 

20 ‘‘(ii) delivering or facilitating the de21 livery of power generated by renewable en22 ergy resources constructed or reasonably 

23 expected to be constructed after the date 

24 of enactment of this section. 


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AMDT. NO. 98 

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

2 charged in connection with any loan made pursuant 

3 to this subsection shall be fixed by the Secretary, 

4 taking into consideration market yields on out5 standing marketable obligations of the United States 

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

7 ‘‘(3) REFINANCING.—The Western Area Power 

8 Administration may refinance loans taken pursuant 

9 to this section within the Treasury. 

10 ‘‘(4) PARTICIPATION.—The Administrator may 

11 permit other entities to participate in the financing, 

12 construction and ownership projects financed under 

13 this section. 

14 ‘‘(5) CONGRESSIONAL REVIEW OF DISBURSE15 MENT.—Effective upon the date of enactment of this 

16 section, the Administrator shall have the authority 

17 to have utilized $1,750,000,000 at any one time. If 

18 the Administrator seeks to borrow funds above 

19 $1,750,000,000, the funds will be disbursed unless 

20 there is enacted, within 90 calendar days of the first 

21 such request, a joint resolution that rescinds the re22 mainder of the balance of the borrowing authority 

23 provided in this section. 

24 ‘‘(c) TRANSMISSION LINE AND RELATED FACILITY

25 PROJECTS.— 


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AMDT. NO. 98 

1 ‘‘(1) IN GENERAL.—For repayment purposes, 

2 each transmission line and related facility project in 

3 which the Western Area Power Administration par4 ticipates pursuant to this section shall be treated as 

5 separate and distinct from— 

6 ‘‘(A) each other such project; and 

7 ‘‘(B) all other Western Area Power Admin8 istration power and transmission facilities. 

9 ‘‘(2) PROCEEDS.—The Western Area Power 

10 Administration shall apply the proceeds from the use 

11 of the transmission capacity from an individual 

12 project under this section to the repayment of the 

13 principal and interest of the loan from the Treasury 

14 attributable to that project, after reserving such 

15 funds as the Western Area Power Administration 

16 determines are necessary— 

17 ‘‘(A) to pay for any ancillary services that 

18 are provided; and 

19 ‘‘(B) to meet the costs of operating and 

20 maintaining the new project from which the 

21 revenues are derived. 

22 ‘‘(3) SOURCE OF REVENUE.—Revenue from the 

23 use of projects under this section shall be the only 

24 source of revenue for— 


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AMDT. NO. 98 

1 ‘‘(A) repayment of the associated loan for 

2 the project; and 

3 ‘‘(B) payment of expenses for ancillary 

4 services and operation and maintenance. 

5 ‘‘(4) LIMITATION ON AUTHORITY.—Nothing in 

6 this section confers on the Administrator any addi7 tional authority or obligation to provide ancillary 

8 services to users of transmission facilities developed 

9 under this section. 

10 ‘‘(5) TREATMENT OF CERTAIN REVENUES.— 

11 Revenue from ancillary services provided by existing 

12 Federal power systems to users of transmission 

13 projects funded pursuant to this section shall be 

14 treated as revenue to the existing power system that 

15 provided the ancillary services. 

16 ‘‘(d) CERTIFICATION.— 

17 ‘‘(1) IN GENERAL.—For each project in which 

18 the Western Area Power Administration participates 

19 pursuant to this section, the Administrator shall cer20 tify, prior to committing funds for any such project, 

21 that— 

22 ‘‘(A) the project is in the public interest; 

23 ‘‘(B) the project will not adversely impact 

24 system reliability or operations, or other statu25 tory obligations; and 


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AMDT. NO. 98 

1 ‘‘(C) it is reasonable to expect that the 

2 proceeds from the project shall be adequate to 

3 make repayment of the loan. 

4 ‘‘(2) FORGIVENESS OF BALANCES.— 

5 ‘‘(A) IN GENERAL.—If, at the end of the 

6 useful life of a project, there is a remaining bal7 ance owed to the Treasury under this section, 

8 the balance shall be forgiven. 

9 ‘‘(B) UNCONSTRUCTED PROJECTS.—Funds 

10 expended to study projects that are considered 

11 pursuant to this section but that are not con12 structed shall be forgiven. 

13 ‘‘(C) NOTIFICATION.—The Administrator 

14 shall notify the Secretary of such amounts as 

15 are to be forgiven under this paragraph. 

16 ‘‘(e) PUBLIC PROCESSES.— 

17 ‘‘(1) POLICIES AND PRACTICES.—Prior to re18 questing any loans under this section, the Adminis19 trator shall use a public process to develop practices 

20 and policies that implement the authority granted by 

21 this section. 

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

23 of selecting potential projects to be funded under 

24 this section, the Administrator shall seek Requests 

25 For Interest from entities interested in identifying 


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AMDT. NO. 98 

1 potential projects through one or more notices pub2 lished in the Federal Register.’’ 

3 SEC. 403. TECHNICAL CORRECTIONS TO THE EN4 ERGY INDEPENDENCE AND SECURITY ACT OF 2007. Title 

5 XIII of the Energy Independence and Security Act of 

6 2007 (15 U.S.C. 17381 and following) is amended as fol7 lows: 

8 (1) By amending subparagraph (A) of section 

9 1304(b)(3) to read as follows: 

10 ‘‘(A) IN GENERAL.—In carrying out the 

11 initiative, the Secretary shall provide financial 

12 support to smart grid demonstration projects 

13 including those in rural areas and/or areas 

14 where the majority of generation and trans15 mission assets are controlled by a tax-exempt 

16 entity.’’. 

17 (2) By amending subparagraph (C) of section 

18 1304(b)(3) to read as follows: 

19 ‘‘(C) FEDERAL SHARE OF COST OF TECH20 NOLOGY INVESTMENTS.—The Secretary shall 

21 provide to an electric utility described in sub22 paragraph (B) or to other parties financial as23 sistance for use in paying an amount equal to 

24 not more than 50 percent of the cost of quali25 fying advanced grid technology investments 


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AMDT. NO. 98 

1 made by the electric utility or other party to 

2 carry out a demonstration project. ’’. 

3 (3) By inserting a new subparagraph (E) after 

4 1304(b)(3)(D) as follows: 

5 ‘‘(E) AVAILABILITY OF DATA.—The 

6 Secretary shall establish and maintain a 

7 smart grid information clearinghouse in a 

8 timely manner which will make data from 

9 smart grid demonstration projects and 

10 other sources available to the public. As a 

11 condition of receiving financial assistance 

12 under this subsection, a utility or other 

13 participant in a smart grid demonstration 

14 project shall provide such information as 

15 the Secretary may require to become avail16 able through the smart grid information 

17 clearinghouse in the form and within the 

18 timeframes as directed by the Secretary. 

19 The Secretary shall assure that business 

20 proprietary information and individual cus21 tomer information is not included in the 

22 information made available through the 

23 clearinghouse.’’. 

24 (4) By amending paragraph (2) of section 

25 1304(c) to read as follows: 


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AMDT. NO. 98 

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

2 may be necessary.’’. 

3 (5) By amending subsection (a) of section 1306 

4 by striking ‘‘reimbursement of one-fifth (20 per5 cent)’’ and inserting ‘‘grants of up to one-half (50 

6 percent)’’. 

7 (6) By striking the last sentence of subsection 

8 (b)(9) of section 1306. 

9 (7) By striking ‘‘are eligible for’’ in subsection 

10 (c)(1) of section 1306 and inserting ‘‘utilize’’. 

11 (8) By amending subsection (e) of section 1306 

12 to read as follows: 

13 ‘‘(e) The Secretary shall— 

14 ‘‘(1) establish within 60 days after the enact15 ment of the American Recovery and Reinvestment 

16 Act of 2009 procedures by which applicants can ob17 tain grants of not more than one-half of their docu18 mented costs; 

19 ‘‘(2) establish procedures to ensure that there is 

20 no duplication or multiple payment for the same in21 vestment or costs, that the grant goes to the party 

22 making the actual expenditures for Qualifying Smart 

23 Grid Investments, and that the grants made have 

24 significant effect in encouraging and facilitating the 

25 development of a smart grid; 


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AMDT. NO. 98 

1 ‘‘(3) maintain public records of grants made, 

2 recipients, and qualifying Smart Grid investments 

3 which have received grants; 

4 ‘‘(4) establish procedures to provide advance 

5 payment of moneys up to the full amount of the 

6 grant award; and 

7 ‘‘(5) have and exercise the discretion to deny 

8 grants for investments that do not qualify in the 

9 reasonable judgment of the Secretary.’’. 

10 SEC. 404. TEMPORARY STIMULUS LOAN GUARANTEE

11 PROGRAM. (a) AMENDMENT.—Title XVII of the Energy 

12 Policy Act of 2005 (42 U.S.C. 16511 et seq.) is amended 

13 by adding the following at the end: 

14 ‘‘SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOY15 MENT OF RENEWABLE ENERGY AND ELEC16 TRIC POWER TRANSMISSION PROJECTS. 

17 ‘‘(a) IN GENERAL.—Notwithstanding section 1703, 

18 the Secretary may make guarantees under this section 

19 only for commercial technology projects under subsection 

20 (b) that will reach financial close not later than September 

21 30, 2012. 

22 ‘‘(b) CATEGORIES.—Projects from only the following 

23 categories shall be eligible for support under this section: 

24 ‘‘(1) Renewable energy systems. 

25 ‘‘(2) Electric power transmission systems. 


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AMDT. NO. 98 

1 ‘‘(c) AUTHORIZATION LIMIT.—There are authorized 

2 to be appropriated $10,000,000,000 to the Secretary for 

3 fiscal years 2009 through 2012 to provide the cost of 

4 guarantees made under section. 

5 ‘‘(d) SUNSET.—The authority to enter into guaran6 tees under this section shall expire on September 30, 

7 2012.’’. 

8 (b) TABLE OF CONTENTS AMENDMENT.—The table 

9 of contents for the Energy Policy Act of 2005 is amended 

10 by inserting after the item relating to section 1704 the 

11 following new item: 

‘‘Sec. 1705. Temporary program for rapid deployment of renewable energy and 

electric power transmission projects.’’. 

12 SEC. 405. WEATHERIZATION PROGRAM AMEND13 MENTS. (a) INCOME LEVEL.—Section 412(7) of the En14 ergy Conservation and Production Act (42 U.S.C. 

15 6862(7)) is amended by striking ‘‘150 percent’’ both 

16 places it appears and inserting ‘‘200 percent’’. 

17 (b) ASSISTANCE LEVEL PER DWELLING UNIT.—Sec18 tion 415(c)(1) of the Energy Conservation and Production 

19 Act (42 U.S.C. 6865(c)(1)) is amended by striking 

20 ‘‘$2,500’’ and inserting ‘‘$5,000’’. 

21 (c) TRAINING AND TECHNICAL ASSISTANCE.—Sec22 tion 416 of the Energy Conservation and Production Act 

23 (42 U.S.C. 6866) is amended by striking ‘‘10 percent’’ 

24 and inserting ‘‘up to 20 percent’’. 


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1 SEC. 406. TECHNICAL CORRECTIONS TO PUBLIC

2 UTILITY REGULATORY POLICIES ACT OF 1978. (a) Sec3 tion 111(d) of the Public Utility Regulatory Policies Act 

4 of 1978 (16 U.S.C. 2621(d)) is amended by redesignating 

5 paragraph (16) relating to consideration of smart grid in6 vestments (added by section 1307(a) of Public Law 110– 

7 140) as paragraph (18) and by redesignating paragraph 

8 (17) relating to smart grid information (added by section 

9 1308(a) of Public Law 110–140) as paragraph (19). 

10 (b) Subsections (b) and (d) of section 112 of the Pub11 lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 

12 2622) are each amended by striking ‘‘(17) through (18)’’ 

13 in each place it appears and inserting ‘‘(16) through 

14 (19)’’. 

15 TITLE V—FINANCIAL SERVICES AND GENERAL 

16 GOVERNMENT 

17 DEPARTMENT OF THE TREASURY 

18 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

19 FUND PROGRAM ACCOUNT

20 For an additional amount for ‘‘Community Develop21 ment Financial Institutions Fund Program Account’’, 

22 $250,000,000, to remain available until September 30, 

23 2010, for qualified applicants under the fiscal year 2008 

24 and 2009 funding rounds of the Community Development 

25 Financial Institutions Program, of which up to 


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AMDT. NO. 98 

1 $20,000,000 may be for financial assistance, technical as2 sistance, training and outreach programs, including up to 

3 $5,000 for subsistence expenses, designed to benefit Na4 tive American, Native Hawaiian, and Alaskan Native com5 munities and provided primarily through qualified commu6 nity development lender organizations with experience and 

7 expertise in community development banking and lending 

8 in Indian country, Native American organizations, tribes 

9 and tribal organizations and other suitable providers and 

10 up to $5,000,000 may be used for administrative ex11 penses: Provided, That for purposes of the fiscal year 2008 

12 and 2009 funding rounds, the following statutory provi13 sions are hereby waived: 12 U.S.C. 4707(e) and 12 U.S.C. 

14 4707(d): Provided further, That no awardee, together with 

15 its subsidiaries and affiliates, may be awarded more than 

16 15 percent of the aggregate funds available during each 

17 of fiscal years 2008 and 2009 from the Community Devel18 opment Financial Institutions Program: Provided further, 

19 That no later than 60 days after the date of enactment 

20 of this Act, the Department of the Treasury shall submit 

21 to the Committees on Appropriations of the House of Rep22 resentatives and the Senate a detailed expenditure plan 

23 for funds provided under this heading. 


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1 DISTRICT OF COLUMBIA 

2 FEDERAL PAYMENTS

3 FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA

4 WATER AND SEWER AUTHORITY

5 For a Federal payment to the District of Columbia 

6 Water and Sewer Authority, $125,000,000, to remain 

7 available until September 30, 2010, to continue implemen8 tation of the Combined Sewer Overflow Long-Term Con9 trol Plan: Provided, That the District of Columbia Water 

10 and Sewer Authority provide a 100 percent match for this 

11 payment: Provided further, That no later than 60 days 

12 after the date of enactment of this Act, the District of 

13 Columbia Water and Sewer Authority shall submit to the 

14 Committees on Appropriations of the House of Represent15 atives and the Senate a detailed expenditure plan for 

16 funds provided under this heading: Provided further, That 

17 such expenditure plan shall include a description of each 

18 specific project, how specific projects will further the ob19 jectives of the Long-Term Control Plan, and all funding 

20 sources for each project. 


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AMDT. NO. 98 

1 GENERAL SERVICES ADMINISTRATION 

2 REAL PROPERTY ACTIVITIES

3 FEDERAL BUILDINGS FUND

4 LIMITATIONS ON AVAILABILITY OF REVENUE

5 (INCLUDING TRANSFER OF FUNDS)

6 For an additional amount to be deposited in the Fed7 eral Buildings Fund, $9,048,000,000, to carry out the 

8 purposes of the Fund, of which not less than 

9 $1,400,000,000 shall be available for Federal buildings 

10 and United States courthouses, not less than 

11 $1,200,000,000 shall be available for border stations, and 

12 not less than $6,000,000,000 shall be available for meas13 ures necessary to convert GSA facilities to High-Perform14 ance Green Buildings, as defined in section 401 of Public 

15 Law 110–140: Provided, That not to exceed $108,000,000 

16 of the amounts provided under this heading may be ex17 pended for rental of space, related to leasing of temporary 

18 space in connection with projects funded under this head19 ing: Provided further, That not to exceed $206,000,000 

20 of the amounts provided under this heading may be ex21 pended for building operations, for the administrative 

22 costs of completing projects funded under this heading: 

23 Provided further, That (1) not less than $7,000,000,000 

24 of the funds provided under this heading shall be obligated 

25 by September 30, 2010, and (2) $1,600,000,000 shall be 

26 available until September 30, 2011: Provided further, That 


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AMDT. NO. 98 

1 the Administrator of General Services is authorized to ini2 tiate design, construction, repair, alteration, and other 

3 projects through existing authorities of the Administrator: 

4 Provided further, That the General Services Administra5 tion shall submit a detailed plan, by project, regarding the 

6 use of funds made available in this Act to the Committees 

7 on Appropriations of the House of Representatives and the 

8 Senate within 60 days of enactment of this Act: Provided 

9 further, That of the amounts provided for converting GSA 

10 facilities to High-Performance Green Buildings, 

11 $4,000,000 shall be transferred to and merged with ‘‘Gov12 ernment-Wide Policy’’, for carrying out the provisions of 

13 section 436 of the Energy Independence and Security Act 

14 of 2007 (Public Law 110–140), establishing an Office of 

15 Federal High-Performance Green Buildings, to remain 

16 available until September 30, 2010: Provided further, That 

17 within the overall amount to be deposited into the Fund, 

18 $448,000,000 shall remain available until September 30, 

19 2011, for the development and construction of the head20 quarters for the Department of Homeland Security, except 

21 that none of the preceding provisos shall apply to amounts 

22 made available under this proviso. 


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AMDT. NO. 98 

1 ENERGY-EFFICIENT FEDERAL MOTOR VEHICLE FLEET

2 PROCUREMENT

3 For capital expenditures and necessary expenses of 

4 acquiring motor vehicles with higher fuel economy, includ5 ing: hybrid vehicles; neighborhood electric vehicles; electric 

6 vehicles; and commercially-available, plug-in hybrid vehi7 cles, $600,000,000, to remain available until September 

8 30, 2011. 

9 OFFICE OF INSPECTOR GENERAL

10 For an additional amount for the Office of the In11 spector General, to remain available until September 30, 

12 2011, $2,000,000. 

13 RECOVERY ACT ACCOUNTABILITY AND 

14 TRANSPARENCY BOARD 

15 For necessary expenses of the Recovery Act Account16 ability and Transparency Board to carry out the provi17 sions of title XV of this Act, $7,000,000, to remain avail18 able until September 30, 2010. 

19 SMALL BUSINESS ADMINISTRATION 

20 SALARIES AND EXPENSES

21 For an additional amount, to remain available until 

22 September 30, 2010, $84,000,000, of which $24,000,000 

23 is for marketing, management, and technical assistance 

24 under section 7(m) of the Small Business Act (15 U.S.C. 

25 636(m)(4)) by intermediaries that make microloans under 


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AMDT. NO. 98 

1 the microloan program, of which $15,000,000 is for lender 

2 oversight activities as authorized in section 501(c) of this 

3 title, and of which $20,000,000 is for improving, stream4 lining, and automating information technology systems re5 lated to lender processes and lender oversight: Provided, 

6 That no later than 60 days after the date of enactment 

7 of this Act, the Small Business Administration shall sub8 mit to the Committees on Appropriations of the House 

9 of Representatives and the Senate a detailed expenditure 

10 plan for funds provided under the heading ‘‘Small Busi11 ness Administration’’ in this Act. 

12 OFFICE OF INSPECTOR GENERAL

13 For an additional amount for the Office of Inspector 

14 General in carrying out the provisions of the Inspector 

15 General Act of 1978, $10,000,000, to remain available 

16 until September 30, 2011. 

17 SURETY BOND GUARANTEES REVOLVING FUND

18 For additional capital for the Surety Bond Guaran19 tees Revolving Fund, authorized by the Small Business 

20 Investment Act of 1958, $15,000,000, to remain available 

21 until expended. 

22 BUSINESS LOANS PROGRAM ACCOUNT

23 For an additional amount for the cost of direct loans, 

24 $6,000,000, to remain available until September 30, 2010, 

25 and for an additional amount for the cost of guaranteed 


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AMDT. NO. 98 

1 loans, $615,000,000, to remain available until September 

2 30, 2010: Provided, That of the amount for the cost of 

3 guaranteed loans, $515,000,000 shall be for loan subsidies 

4 and loan modifications for loans to small business con5 cerns authorized in section 501(a) of this title; and 

6 $100,000,000 shall be for loan subsidies and loan modi7 fications for loans to small business concerns authorized 

8 in section 501(b) of this title: Provided further, That such 

9 costs, including the cost of modifying such loans, shall be 

10 as defined in section 502 of the Congressional Budget Act 

11 of 1974. 

12 ADMINISTRATIVE PROVISIONS—SMALL BUSINESS

13 ADMINISTRATION

14 SEC. 501. ECONOMIC STIMULUS FOR SMALL BUSI15 NESS CONCERNS. (a) TEMPORARY FEE ELIMINATION FOR

16 THE 7(a) LOAN PROGRAM.—Until September 30, 2010, 

17 and to the extent that the cost of such elimination of fees 

18 is offset by appropriations, with respect to each loan guar19 anteed under section 7(a) of the Small Business Act (15 

20 U.S.C. 636(a)) for which the application is approved on 

21 or after the date of enactment of this Act, the Adminis22 trator shall— 

23 (1) in lieu of the fee otherwise applicable under 

24 section 7(a)(23)(A) of the Small Business Act (15 

25 U.S.C. 636(a)(23)(A)), collect no fee; and 


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AMDT. NO. 98 

1 (2) in lieu of the fee otherwise applicable under 

2 section 7(a)(18)(A) of the Small Business Act (15 

3 U.S.C. 636(a)(18)(A)), collect no fee. 

4 (b) TEMPORARY FEE ELIMINATION FOR THE 504 

5 LOAN PROGRAM.— 

6 (1) IN GENERAL.—Until September 30, 2010, 

7 and to the extent the cost of such elimination in fees 

8 is offset by appropriations, with respect to each 

9 project or loan guaranteed by the Administrator 

10 under title V of the Small Business Investment Act 

11 of 1958 (15 U.S.C. 695 et seq.) for which an appli12 cation is approved or pending approval on or after 

13 the date of enactment of this Act— 

14 (A) the Administrator shall, in lieu of the 

15 fee otherwise applicable under section 503(d)(2) 

16 of the Small Business Investment Act of 1958 

17 (15 U.S.C. 697(d)(2)), collect no fee; 

18 (B) a development company shall, in lieu 

19 of the processing fee under section 

20 120.971(a)(1) of title 13, Code of Federal Reg21 ulations (relating to fees paid by borrowers), or 

22 any successor thereto, collect no fee. 

23 (2) REIMBURSEMENT FOR WAIVED FEES.— 

24 (A) IN GENERAL.—To the extent that the 

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1 tions, the Administrator shall reimburse each 

2 development company that does not collect a 

3 processing fee pursuant to paragraph (1)(B). 

4 (B) AMOUNT.—The payment to a develop5 ment company under subparagraph (A) shall be 

6 in an amount equal to 1.5 percent of the net 

7 debenture proceeds for which the development 

8 company does not collect a processing fee pur9 suant to paragraph (1)(B). 

10 (c) TEMPORARY FEE ELIMINATION OF LENDER

11 OVERSIGHT FEES.—Until September 30, 2010, and to the 

12 extent the cost of such elimination in fees is offset by ap13 propriations, the Administrator shall, in lieu of the fee 

14 otherwise applicable under section 5(b)(14) of the Small 

15 Business Act (15 U.S.C. 634(b)(14)), collect no fee. 

16 (d) APPLICATION OF FEE ELIMINATIONS.—The Ad17 ministrator shall eliminate fees under subsections (a), (b), 

18 and (c) until the amount provided for such purposes, as 

19 applicable, under the headings ‘‘Salaries and Expenses’’ 

20 and ‘‘Business Loans Program Account’’ under the head21 ing ‘‘Small Business Administration’’ under this Act are 

22 expended. 

23 SEC. 502. FINANCIAL ASSISTANCE PROGRAM IM24 PROVEMENTS. (a) 7(a) LOAN MAXIMUM AMOUNT.—Sec25 tion 7(a)(3)(A) of the Small Business Act (15 U.S.C. 


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AMDT. NO. 98 

1 636(a)(3)(A)) is amended by striking ‘‘$1,500,000 (or if 

2 the gross loan amount would exceed $2,000,000)’’ and in3 serting ‘‘$2,250,000 (or if the gross loan amount would 

4 exceed $3,000,000)’’. 

5 (b) SMALL BUSINESS INVESTMENT COMPANIES.— 

6 (1) MAXIMUM LEVERAGE.—Section 303(b) of 

7 the Small Business Investment Act of 1958 (15 

8 U.S.C. 683(b)) is amended— 

9 (A) in paragraph (2), by striking subpara10 graphs (A), (B), and (C) and inserting the fol11 lowing: 

12 ‘‘(A) IN GENERAL.—The maximum 

13 amount of outstanding leverage made available 

14 to any 1 company licensed under section 301(c) 

15 may not exceed the lesser of— 

16 ‘‘(i) 300 percent of the private capital 

17 of the company; or 

18 ‘‘(ii) $150,000,000. 

19 ‘‘(B) MULTIPLE LICENSES UNDER COM20 MON CONTROL.—The maximum amount of out21 standing leverage made available to 2 or more 

22 companies licensed under section 301(c) that 

23 are commonly controlled (as determined by the 

24 Administrator) may not exceed $225,000,000. 


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AMDT. NO. 98 

1 ‘‘(C) INVESTMENTS IN LOW–INCOME GEO2 GRAPHIC AREAS.— 

3 ‘‘(i) IN GENERAL.—The maximum 

4 amount of outstanding leverage made 

5 available to— 

6 ‘‘(I) any 1 company described in 

7 clause (ii) may not exceed the lesser 

8 of— 

9 ‘‘(aa) 300 percent of private 

10 capital of the company; or 

11 ‘‘(bb) $175,000,000; and 

12 ‘‘(II) 2 or more companies de13 scribed in clause (ii) that are com14 monly controlled (as determined by 

15 the Administrator) may not exceed 

16 $250,000,000. 

17 ‘‘(ii) APPLICABILITY.—A company de18 scribed in this clause is a company licensed 

19 under section 301(c) that certifies in writ20 ing that not less than 50 percent of the 

21 dollar amount of investments of that com22 pany shall be made in companies that are 

23 located in a low-income geographic area 

24 (as that term is defined in section 351).’’; 

25 and 


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AMDT. NO. 98 

1 (B) by striking paragraph (4). 

2 (2) INVESTMENTS IN SMALLER ENTER3 PRISES.—Section 303(d) of the Small Business In4 vestment Act of 1958 (15 U.S.C. 683(d)) is amend5 ed to read as follows: 

6 ‘‘(d) INVESTMENTS IN SMALLER ENTERPRISES.— 

7 The Administrator shall require each licensee, as a condi8 tion of approval of an application for leverage, to certify 

9 in writing that not less than 25 percent of the aggregate 

10 dollar amount of financings of that licensee shall be pro11 vided to smaller enterprises.’’. 

12 (3) MAXIMUM INVESTMENT IN A COMPANY.— 

13 Section 306(a) of the Small Business Investment 

14 Act of 1958 (15 U.S.C. 686(a)) is amended by strik15 ing ‘‘20 per centum’’ and inserting ‘‘30 percent’’. 

16 (c) MAXIMUM 504 LOAN SIZE.—Section 502(2)(A) 

17 of the Small Business Investment Act of 1958 (15 U.S.C. 

18 696(2)(A)) is amended— 

19 (1) in clause (i), by striking ‘‘$1,500,000’’ and 

20 inserting ‘‘$3,000,000’’; 

21 (2) in clause (ii), by striking ‘‘$2,000,000’’ and 

22 inserting ‘‘$3,500,000’’; and 

23 (3) in clause (iii), by striking ‘‘$4,000,000’’ and 

24 inserting ‘‘$5,500,000’’. 


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AMDT. NO. 98 

1 SEC. 503. LOW-INTEREST REFINANCING. Section 

2 502 of the Small Business Investment Act of 1958 (15 

3 U.S.C. 696) is amended by adding at the end the fol4 lowing: 

5 ‘‘(7) PERMISSIBLE DEBT FINANCING.—A fi6 nancing under this title may include refinancing of 

7 existing indebtedness, in an amount not to exceed 50 

8 percent of the projected cost of the project financed 

9 under this title, if— 

10 ‘‘(A) the project financed under this title 

11 involves the expansion of a small business con12 cern; 

13 ‘‘(B) the existing indebtedness is 

14 collateralized by fixed assets; 

15 ‘‘(C) the existing indebtedness was in16 curred for the benefit of the small business con17 cern; 

18 ‘‘(D) the proceeds of the existing indebted19 ness were used to acquire land (including a 

20 building situated thereon), to construct or ex21 pand a building thereon, or to purchase equip22 ment; 

23 ‘‘(E) the borrower has been current on all 

24 payments due on the existing indebtedness for 


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1 not less than 1 year preceding the proposed 

2 date of refinancing; 

3 ‘‘(F) the financing under this title will pro4 vide better terms or a better rate of interest 

5 than exists on the existing indebtedness on the 

6 proposed date of refinancing; 

7 ‘‘(G) the financing under this title is not 

8 being used to refinance any debt guaranteed by 

9 the Government; and 

10 ‘‘(H) the financing under this title will be 

11 used only for— 

12 ‘‘(i) refinancing existing indebtedness; 

13 or 

14 ‘‘(ii) costs relating to the project fi15 nanced under this title.’’. 

16 SEC. 504. DEFINITIONS. Under the heading ‘‘Small 

17 Business Administration’’ in this title— 

18 (1) the terms ‘‘Administration’’ and ‘‘Adminis19 trator’’ mean the Small Business Administration 

20 and the Administrator thereof, respectively; 

21 (2) the term ‘‘development company’’ has the 

22 meaning given the term ‘‘development companies’’ in 

23 section 103 of the Small Business Investment Act of 

24 1958 (15 U.S.C. 662); and 


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AMDT. NO. 98 

1 (3) the term ‘‘small business concern’’ has the 

2 same meaning as in section 3 of the Small Business 

3 Act (15 U.S.C. 632). 

4 TITLE VI—DEPARTMENT OF HOMELAND 

5 SECURITY 

6 DEPARTMENT OF HOMELAND SECURITY 

7 OFFICE OF THE UNDER SECRETARY FOR MANAGEMENT

8 For an additional amount for the ‘‘Office of the 

9 Under Secretary for Management’’, $248,000,000, to re10 main available until September 30, 2011, solely for plan11 ning, design, and construction costs, including site secu12 rity, information technology infrastructure, furniture, fix13 tures, and related costs to consolidate the Department of 

14 Homeland Security headquarters: Provided, That no later 

15 than 60 days after the date of enactment of this Act, the 

16 Secretary of Homeland Security, in consultation with the 

17 Administrator of General Services, shall submit to the 

18 Committees on Appropriations of the Senate and the 

19 House of Representatives a plan for the expenditure of 

20 these funds. 

21 OFFICE OF INSPECTOR GENERAL

22 For an additional amount for the ‘‘Office of Inspector 

23 General’’, $5,000,000, to remain available until September 

24 30, 2010, for oversight and audit of programs, grants, and 

25 projects funded under this title. 


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AMDT. NO. 98 

1 U.S. CUSTOMS AND BORDER PROTECTION

2 SALARIES AND EXPENSES

3 For an additional amount for ‘‘Salaries and Ex4 penses’’, $198,000,000, to remain available until Sep5 tember 30, 2010, of which $100,800,000 shall be for the 

6 procurement and deployment of non-intrusive inspection 

7 systems to improve port security; and of which 

8 $97,200,000 shall be for procurement and deployment of 

9 tactical communications equipment and radios: Provided, 

10 That no later than 45 days after the date of enactment 

11 of this Act, the Secretary of Homeland Security shall sub12 mit to the Committees on Appropriations of the Senate 

13 and the House of Representatives a plan for expenditure 

14 of these funds. 

15 BORDER SECURITY FENCING, INFRASTRUCTURE, AND

16 TECHNOLOGY

17 For an additional amount for ‘‘Border Security Fenc18 ing, Infrastructure, and Technology’’, $200,000,000, to 

19 remain available until September 30, 2010, for expedited 

20 development and deployment of border security technology 

21 on the Southwest border: Provided, That no later than 45 

22 days after the date of enactment of this Act, the Secretary 

23 of Homeland Security shall submit to the Committees on 

24 Appropriations of the Senate and the House of Represent25 atives a plan for expenditure of these funds. 


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AMDT. NO. 98 

1 CONSTRUCTION

2 For an additional amount for ‘‘Construction’’, 

3 $800,000,000, to remain available until expended, solely 

4 for planning, management, design, alteration, and con5 struction of U.S. Customs and Border Protection owned 

6 land border ports of entry: Provided, That no later than 

7 45 days after the date of enactment of this Act, the Sec8 retary of Homeland Security shall submit to the Commit9 tees on Appropriations of the Senate and the House of 

10 Representatives a plan for expenditure of these funds. 

11 U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT

12 AUTOMATION MODERNIZATION

13 For an additional amount for ‘‘Automation Mod14 ernization’’, $27,800,000, to remain available until Sep15 tember 30, 2010, for the procurement and deployment of 

16 tactical communications equipment and radios: Provided, 

17 That no later than 45 days after the date of enactment 

18 of this Act, the Secretary of Homeland Security shall sub19 mit to the Committees on Appropriations of the Senate 

20 and the House of Representatives a plan for expenditure 

21 of these funds. 

22 TRANSPORTATION SECURITY ADMINISTRATION

23 AVIATION SECURITY

24 For an additional amount for ‘‘Aviation Security’’, 

25 $1,200,000,000, to remain available until September 30, 


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AMDT. NO. 98 

1 2010, for procurement and installation of checked baggage 

2 explosives detection systems and checkpoint explosives de3 tection equipment: Provided, That no later than 45 days 

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

5 Homeland Security shall submit to the Committees on Ap6 propriations of the Senate and the House of Representa7 tives a plan for the expenditure of these funds. 

8 COAST GUARD

9 ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS

10 For an additional amount for ‘‘Acquisition, Construc11 tion, and Improvements’’, $572,500,000, to remain avail12 able until September 30, 2010, of which $255,000,000 

13 shall be for shortfalls in priority procurements due to ma14 terials and labor cost increases; of which $195,000,000 

15 shall be for shore facilities and aids to navigation facilities; 

16 of which $87,500,000 shall be for the design of a new 

17 polar icebreaker or the renovation of an existing polar ice18 breaker, and major repair and maintenance of existing 

19 polar icebreakers; and of which $35,000,000 shall be for 

20 emergency maintenance of the Coast Guard’s high endur21 ance cutters: Provided, That amounts made available for 

22 the activities under this heading shall be available for all 

23 necessary expenses related to the oversight and manage24 ment of such activities: Provided further, That no later 

25 than 45 days after the date of enactment of this Act, the 


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1 Secretary of Homeland Security shall submit to the Com2 mittees on Appropriations of the Senate and the House 

3 of Representatives a plan for the expenditure of these 

4 funds. 

5 ALTERATION OF BRIDGES

6 For an additional amount for ‘‘Alteration of 

7 Bridges’’, $240,400,000, to remain available until Sep8 tember 30, 2010, for alteration or removal of obstructive 

9 bridges, as authorized by section 6 of the Truman-Hobbs 

10 Act (33 U.S.C. 516): Provided, That no later than 45 days 

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

12 Homeland Security shall submit to the Committees on Ap13 propriations of the Senate and the House of Representa14 tives a plan for the expenditure of these funds. 

15 FEDERAL EMERGENCY MANAGEMENT AGENCY

16 MANAGEMENT AND ADMINISTRATION

17 For an additional amount for ‘‘Management and Ad18 ministration’’, $6,000,000 for the acquisition of commu19 nications response vehicles to be deployed in response to 

20 a disaster or a national security event. 

21 STATE AND LOCAL PROGRAMS

22 For an additional amount for grants, $950,000,000, 

23 to be allocated as follows: 

24 (1) $100,000,000, to remain available until 

25 September 30, 2010, for Public Transportation Se26 curity Assistance, Railroad Security Assistance, and 


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AMDT. NO. 98 

1 Systemwide Amtrak Security Upgrades under sec2 tions 1406, 1513, and 1514 of the Implementing 

3 Recommendations of the 9/11 Commission Act of 

4 2007 (Public Law 110–53; 6 U.S.C. 1135, 1163, 

5 and 1164). 

6 (2) $100,000,000, to remain available until 

7 September 30, 2010, for Port Security Grants in ac8 cordance with 46 U.S.C. 70107, notwithstanding 46 

9 U.S.C. 70107(c). 

10 (3) $250,000,000, to remain available until 

11 September 30, 2010, for upgrading, modifying, or 

12 constructing emergency operations centers under 

13 section 614 of the Robert T. Stafford Disaster Relief 

14 and Emergency Assistance Act, notwithstanding sec15 tion 614(c) of that Act or for upgrading, modifying, 

16 or constructing State and local fusion centers as de17 fined by section 210A(j)(1) of the Homeland Secu18 rity Act of 2002 (6 U.S.C. 124h(j)(1)). 

19 (4) $500,000,000 for construction to upgrade 

20 or modify critical infrastructure, as defined in sec21 tion 1016(e) of the USA PATRIOT Act of 2001 (42 

22 U.S.C. 5195c(e)), to mitigate consequences related 

23 to potential damage from all-hazards: Provided, 

24 That funds in this paragraph shall remain available 

25 until September 30, 2011: Provided further, That 5 


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1 percent shall be for program administration: Pro2 vided further, That no later than 60 days after the 

3 date of enactment of this Act, the Secretary of 

4 Homeland Security shall submit to the Committees 

5 on Appropriations of the Senate and the House of 

6 Representatives a plan for expenditure of these 

7 funds. 

8 FIREFIGHTER ASSISTANCE GRANTS

9 For an additional amount for competitive grants, 

10 $500,000,000, to remain available until September 30, 

11 2010, for modifying, upgrading, or constructing State and 

12 local fire stations: Provided, That up to 5 percent shall 

13 be for program administration: Provided further, That no 

14 grant shall exceed $15,000,000. 

15 DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

16 Notwithstanding section 417(b) of the Robert T. 

17 Stafford Disaster Relief and Emergency Assistance Act, 

18 the amount of any such loan issued pursuant to this sec19 tion for major disasters occurring in calendar year 2008 

20 may exceed $5,000,000, and may be equal to not more 

21 than 50 percent of the annual operating budget of the 

22 local government in any case in which that local govern23 ment has suffered a loss of 25 percent or more in tax reve24 nues: Provided, That the cost of modifying such loans shall 

25 be as defined in section 502 of the Congressional Budget 

26 Act of 1974 (2 U.S.C. 661a). 


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1 EMERGENCY FOOD AND SHELTER

2 For an additional amount to carry out the emergency 

3 food and shelter program pursuant to title III of the 

4 McKinney-Vento Homeless Assistance Act (42 U.S.C. 

5 11331 et seq.), $100,000,000: Provided, That total admin6 istrative costs shall not exceed 3.5 percent of the total 

7 amount made available under this heading. 

8 FEDERAL LAW ENFORCEMENT TRAINING CENTER

9 ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND

10 RELATED EXPENSES

11 For an additional amount for ‘‘Acquisition, Construc12 tion, Improvements, and Related Expenses’’, $15,000,000, 

13 to remain available until September 30, 2010, for security 

14 systems and law enforcement upgrades for all Federal 

15 Law Enforcement Training Center facilities: Provided, 

16 That no later than 45 days after the date of enactment 

17 of this Act, the Secretary of Homeland Security shall sub18 mit to the Committees on Appropriations of the Senate 

19 and the House of Representatives a plan for the expendi20 ture of these funds. 

21 SCIENCE AND TECHNOLOGY

22 RESEARCH, DEVELOPMENT, ACQUISITION, AND

23 OPERATIONS

24 For an additional amount for ‘‘Research, Develop25 ment, Acquisition, and Operations’’, $14,000,000, to reVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00112 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 main available until September 30, 2010, for cyber secu2 rity research: Provided, That no later than 45 days after 

3 the date of enactment of this Act, the Secretary of Home4 land Security shall submit to the Committees on Appro5 priations of the Senate and the House of Representatives 

6 a plan for the expenditure of these funds. 

7 GENERAL PROVISIONS—THIS TITLE 

8 SEC. 601. Notwithstanding any other provision of 

9 law, the President shall establish an arbitration panel 

10 under the Federal Emergency Management Agency public 

11 assistance program to expedite the recovery efforts from 

12 Hurricanes Katrina, Rita, Gustav, and Ike within the Gulf 

13 Coast Region. The arbitration panel shall have sufficient 

14 authority regarding the award or denial of disputed public 

15 assistance applications for covered hurricane damage 

16 under section 403, 406, or 407 of the Robert T. Stafford 

17 Disaster Relief and Emergency Assistance Act (42 U.S.C. 

18 5170b, 5172, or 5173) for a project the total amount of 

19 which is more than $500,000. 

20 SEC. 602. The Administrator of the Federal Emer21 gency Management Agency may not prohibit or restrict 

22 the use of funds designated under the hazard mitigation 

23 grant program for damage caused by Hurricanes Katrina 

24 and Rita if the homeowner who is an applicant for assist25 ance under such program commenced work otherwise eligiVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00113 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 ble for hazard mitigation grant program assistance under 

2 section 404 of the Robert T. Stafford Disaster Relief and 

3 Emergency Assistance Act (42 U.S.C. 5170c) without ap4 proval in writing from the Administrator. 

5 TITLE VII—INTERIOR, ENVIRONMENT, AND 

6 RELATED AGENCIES 

7 DEPARTMENT OF THE INTERIOR 

8 BUREAU OF LAND MANAGEMENT

9 MANAGEMENT OF LANDS AND RESOURCES

10 For an additional amount for ‘‘Management of Lands 

11 and Resources’’, $135,000,000, to remain available until 

12 September 30, 2010. 

13 CONSTRUCTION

14 For an additional amount for ‘‘Construction’’, 

15 $180,000,000, to remain available until September 30, 

16 2010. 

17 WILDLAND FIRE MANAGEMENT

18 For an additional amount for ‘‘Wildland Fire Man19 agement’’, $15,000,000, to remain available until Sep20 tember 30, 2010. 

21 UNITED STATES FISH AND WILDLIFE SERVICE

22 RESOURCE MANAGEMENT

23 For an additional amount for ‘‘Resource Manage24 ment’’, $190,000,000, to remain available until September 

25 30, 2010. 


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1 CONSTRUCTION

2 For an additional amount for ‘‘Construction’’, 

3 $110,000,000, to remain available until September 30, 

4 2010. 

5 NATIONAL PARK SERVICE

6 OPERATION OF THE NATIONAL PARK SYSTEM

7 For an additional amount for ‘‘Operation of the Na8 tional Park System’’, $158,000,000, to remain available 

9 until September 30, 2010. 

10 HISTORIC PRESERVATION FUND

11 For an additional amount for ‘‘Historic Preservation 

12 Fund’’, $55,000,000, to remain available until September 

13 30, 2010. 

14 CONSTRUCTION

15 For an additional amount for ‘‘Construction’’, 

16 $589,000,000, to remain available until September 30, 

17 2010. 

18 UNITED STATES GEOLOGICAL SURVEY

19 SURVEYS, INVESTIGATIONS, AND RESEARCH

20 For an additional amount for ‘‘Surveys, Investiga21 tions, and Research’’, $135,000,000, to remain available 

22 until September 30, 2010. 

23 BUREAU OF INDIAN AFFAIRS

24 OPERATION OF INDIAN PROGRAMS

25 For an additional amount for ‘‘Operation of Indian 

26 Programs’’, $40,000,000, to remain available until SepVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00115 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 tember 30, 2010, of which $20,000,000 shall be for the 

2 housing improvement program. 

3 CONSTRUCTION

4 For an additional amount for ‘‘Construction’’, 

5 $522,000,000, to remain available until September 30, 

6 2010. 

7 INDIAN GUARANTEED LOAN PROGRAM ACCOUNT

8 For an additional amount for ‘‘Indian Guaranteed 

9 Loan Program Account’’, $10,000,000, to remain avail10 able until September 30, 2010. 

11 DEPARTMENTAL OFFICES 

12 INSULAR AFFAIRS

13 ASSISTANCE TO TERRITORIES

14 For an additional amount for ‘‘Assistance to Terri15 tories’’, $62,000,000, to remain available until September 

16 30, 2010. 

17 OFFICE OF INSPECTOR GENERAL

18 SALARIES AND EXPENSES

19 For an additional amount for ‘‘Office of Inspector 

20 General’’, $7,600,000, to remain available until September 

21 30, 2010. 

22 DEPARTMENT-WIDE PROGRAMS

23 CENTRAL HAZARDOUS MATERIALS FUND

24 For an additional amount for ‘‘Central Hazardous 

25 Materials Fund’’, $20,000,000, to remain available until 

26 September 30, 2010. 


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1 WORKING CAPITAL FUND

2 For an additional amount for ‘‘Working Capital 

3 Fund’’, $20,000,000, to remain available until September 

4 30, 2010. 

5 ENVIROMENTAL PROTECTION AGENCY 

6 HAZARDOUS SUBSTANCE SUPERFUND

7 (INCLUDING TRANSFERS OF FUNDS)

8 For an additional amount for ‘‘Hazardous Substance 

9 Superfund’’, $800,000,000, to remain available until Sep10 tember 30, 2010, as a payment from general revenues to 

11 the Hazardous Substance Superfund, to carry out reme12 dial actions: Provided, That the Administrator may retain 

13 up to 2 percent of the funds appropriated herein for 

14 Superfund remedial actions for program oversight and 

15 support purposes, and may transfer those funds to other 

16 accounts as needed. 

17 LEAKING UNDERGROUND STORAGE TANK TRUST FUND

18 PROGRAM

19 For an additional amount for ‘‘Leaking Underground 

20 Storage Tank Trust Fund Program’’, $200,000,0000, to 

21 remain available until September 30, 2010, for cleanup 

22 activities: Provided, That none of these funds shall be sub23 ject to cost share requirements. 


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1 STATE AND TRIBAL ASSISTANCE GRANTS

2 (INCLUDING TRANSFERS OF FUNDS)

3 For an additional amount for ‘‘State and Tribal As4 sistance Grants’’, $6,400,000,000, to remain available 

5 until September 30, 2010, of which $4,000,000,000 shall 

6 be for making capitalization grants for the Clean Water 

7 State Revolving Funds under title VI of the Federal Water 

8 Pollution Control Act, as amended; of which 

9 $2,000,000,000 shall be for making capitalization grants 

10 for the Drinking Water State Revolving Fund under sec11 tion 1452 of the Safe Drinking Water Act, as amended; 

12 of which $100,000,000 shall be available for Brownfields 

13 remediation grants pursuant to section 104(k)(3) of the 

14 Comprehensive Environmental Response, Compensation 

15 and Liability Act of 1980, as amended; and of which 

16 $300,000,000 shall be for Diesel Emission Reduction Act 

17 grants pursuant to title VII, subtitle G of the Energy Pol18 icy Act of 2005, as amended: Provided, That notwith19 standing the priority ranking they would otherwise receive 

20 under each program, priority for funds appropriated here21 in for the Clean Water State Revolving Funds and Drink22 ing Water State Revolving Funds (Revolving Funds) shall 

23 be allocated to projects that are ready to proceed to con24 struction within 180 days of enactment of this Act: Pro25 vided further, That the Administrator of the EnvironVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00118 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 mental Protection Agency (Administrator) may reallocate 

2 funds appropriated herein for the Revolving Funds that 

3 are not under binding commitments to proceed to con4 struction within 180 days of enactment of this Act: Pro5 vided further, That notwithstanding any other provision of 

6 law, financial assistance provided from funds appropriated 

7 herein for the Revolving Funds may include additional 

8 subsidization, including forgiveness of principal and nega9 tive interest loans: Provided further, That not less than 

10 15 percent of the funds appropriated herein for the Re11 volving Funds shall be designated for green infrastructure, 

12 water efficiency improvements or other environmentally 

13 innovative projects: Provided further, That notwith14 standing the limitation on amounts specified in section 

15 518(c) of the Federal Water Pollution Control Act, up to 

16 a total of 1.5 percent of the funds appropriated herein 

17 for the Clean Water State Revolving Funds may be re18 served by the Administrator for tribal grants under section 

19 518(c) of such Act: Provided further, That section 1452(k) 

20 of the Safe Drinking Water Act shall not apply to amounts 

21 appropriated herein for the Drinking Water State Revolv22 ing Funds: Provided further, That the Administrator may 

23 exceed the 30 percent limitation on State grants for funds 

24 appropriated herein for Diesel Emission Reduction Act 

25 grants if the Administrator determines such action will exVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00119 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 pedite allocation of funds: Provided further, That none of 

2 the funds appropriated herein shall be subject to cost 

3 share requirements: Provided further, That the Adminis4 trator may retain up to 0.25 percent of the funds appro5 priated herein for the Clean Water State Revolving Funds 

6 and Drinking Water State Revolving Funds and up to 1.5 

7 percent of the funds appropriated herein for the Diesel 

8 Emission Reduction Act grants program for program 

9 oversight and support purposes and may transfer those 

10 funds to other accounts as needed. 

11 DEPARTMENT OF AGRICULTURE 

12 FOREST SERVICE

13 CAPITAL IMPROVEMENT AND MAINTENANCE

14 For an additional amount for ‘‘Capital Improvement 

15 and Maintenance’’, $650,000,000, to remain available 

16 until September 30, 2010, which shall include remediation 

17 of abandoned mine sites and support costs necessary to 

18 carry out this work. 

19 WILDLAND FIRE MANAGEMENT

20 For an additional amount for ‘‘Wildland Fire Man21 agement’’, $650,000,000, to remain available until Sep22 tember 30, 2010, for hazardous fuels reduction and haz23 ard mitigation activities in areas at high risk of cata24 strophic wildfire, of which $350,000,000 is available for 

25 work on State and private lands using all the authorities 

26 available to the Forest Service: Provided, That of the 


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1 funds provided for State and private land fuels reduction 

2 activities, up to $50,000,000 may be used to make grants 

3 for the purpose of creating incentives for increased use 

4 of biomass from national forest lands. 

5 DEPARTMENT OF HEALTH AND HUMAN 

6 SERVICES 

7 INDIAN HEALTH SERVICE

8 INDIAN HEALTH SERVICES

9 For an additional amount for ‘‘Indian Health Serv10 ices’’, $135,000,000, to remain available until September 

11 30, 2010, of which $50,000,000 is for contract health 

12 services; and of which $85,000,000 is for health informa13 tion technology: Provided, That the amount made avail14 able for health information technology activities may be 

15 used for both telehealth services development and related 

16 infrastructure requirements that are typically funded 

17 through the ‘‘Indian Health Facilities’’ account: Provided 

18 further, That notwithstanding any other provision of law, 

19 health information technology funds provided within this 

20 title shall be allocated at the discretion of the Director 

21 of the Indian Health Service. 

22 INDIAN HEALTH FACILITIES

23 For an additional amount for ‘‘Indian Health Facili24 ties’’, $410,000,000, to remain available until September 

25 30, 2010: Provided, That for the purposes of this Act, 

26 spending caps included within the annual appropriation 


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1 for ‘‘Indian Health Facilities’’ for the purchase of medical 

2 equipment shall not apply. 

3 SMITHSONIAN INSTITUTION 

4 FACILITIES CAPITAL

5 For an additional amount for ‘‘Facilities Capital’’, 

6 $150,000,000, to remain available until September 30, 

7 2010. 

8 GENERAL PROVISIONS—THIS TITLE 

9 SEC. 701. (a) Within 30 days of enactment of this 

10 Act, each agency receiving funds under this title shall sub11 mit a general plan for the expenditure of such funds to 

12 the House and Senate Committees on Appropriations. 

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

14 agency receiving funds under this title shall submit to the 

15 Committees a report containing detailed project level in16 formation associated with the general plan submitted pur17 suant to subsection (a). 

18 SEC. 702. In carrying out the work for which funds 

19 in this title are being made available, the Secretary of the 

20 Interior and the Secretary of Agriculture may utilize the 

21 Public Lands Corps, Youth Conservation Corps, Job 

22 Corps and other related partnerships with Federal, State, 

23 local, tribal or non-profit groups that serve young adults. 


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1 TITLE VIII—DEPARTMENTS OF LABOR, 

2 HEALTH AND HUMAN SERVICES, AND EDU3 CATION, AND RELATED AGENCIES 

4 DEPARTMENT OF LABOR 

5 EMPLOYMENT AND TRAINING ADMINISTRATION

6 TRAINING AND EMPLOYMENT SERVICES

7 For an additional amount for ‘‘Training and Employ8 ment Services’’ for activities authorized by the Workforce 

9 Investment Act of 1998 (‘‘WIA’’), $3,250,000,000, which 

10 shall be available on the date of enactment of this Act, 

11 as follows: 

12 (1) $500,000,000 for adult employment and 

13 training activities, including supportive services and 

14 needs-related payments described in section 

15 134(e)(2) and (3) of the WIA: Provided, That a pri16 ority use of these funds shall be services to individ17 uals described in 134(d)(4)(E) of the WIA; 

18 (2) $1,200,000,000 for grants to the States for 

19 youth activities, including summer employment for 

20 youth: Provided, That no portion of such funds shall 

21 be reserved to carry out section 127(b)(1)(A) of the 

22 WIA: Provided further, That for purposes of section 

23 127(b)(1)(C)(iv) of the WIA, funds available for 

24 youth activities shall be allotted as if the total 

25 amount available for youth activities in the fiscal 


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1 year does not exceed $1,000,000,000: Provided fur2 ther, That, with respect to the youth activities pro3 vided with such funds, section 101(13)(A) of the 

4 WIA shall be applied by substituting ‘‘age 24’’ for 

5 ‘‘age 21’’: Provided further, That the work readiness 

6 performance indicator described in section 

7 136(b)(2)(A)(ii)(I) of the WIA shall be the only 

8 measure of performance used to assess the effective9 ness of youth activities provided with such funds; 

10 (3) $1,000,000,000 for grants to the States for 

11 dislocated worker employment and training activi12 ties; 

13 (4) $200,000,000 for national emergency 

14 grants; 

15 (5) $250,000,000 under the dislocated worker 

16 national reserve for a program of competitive grants 

17 for worker training in high growth and emerging in18 dustry sectors and assistance under 132(b)(2)(A) of 

19 the WIA: Provided, That the Secretary of Labor 

20 shall give priority when awarding such grants to 

21 projects that prepare workers for careers in energy 

22 efficiency and renewable energy as described in sec23 tion 171(e)(1)(B) of the WIA and for careers in the 

24 health care sector; and 


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1 (6) $100,000,000 for YouthBuild activities as 

2 described in section 173A of the WIA: Provided, 

3 That for program years 2008 and 2009, the 

4 YouthBuild program may serve an individual who 

5 has dropped out of high school and re-enrolled in an 

6 alternative school, if that re-enrollment is part of a 

7 sequential service strategy: 

8 Provided, That funds made available in this paragraph 

9 shall remain available through June 30, 2010: Provided 

10 further, That a local board may award a contract to an 

11 institution of higher education if the local board deter12 mines that it would facilitate the training of multiple indi13 viduals in high-demand occupations, if such contract does 

14 not limit customer choice. 

15 COMMUNITY SERVICE EMPLOYMENT FOR OLDER

16 AMERICANS

17 For an additional amount for ‘‘Community Service 

18 Employment for Older Americans’’ for carrying out title 

19 V of the Older Americans Act of 1965, $120,000,000, 

20 which shall be available on the date of enactment of this 

21 Act and shall remain available through June 30, 2010: 

22 Provided, That funds shall be allotted within 30 days of 

23 such enactment to current grantees in proportion to their 

24 allotment in program year 2008: Provided further, That 

25 funds made available under this heading in this Act may, 


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1 in accordance with section 517(c) of the Older Americans 

2 Act of 1965, be recaptured and reobligated. 

3 STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT

4 SERVICE OPERATIONS

5 For an additional amount for ‘‘State Unemployment 

6 Insurance and Employment Service Operations’’ for 

7 grants to States in accordance with section 6 of the Wag8 ner-Peyser Act, $400,000,000, which may be expended 

9 from the Employment Security Administration account in 

10 the Unemployment Trust Fund: Provided, That such 

11 funds shall be available on the date of enactment of this 

12 Act and remain available to the States through September 

13 30, 2010: Provided further, That $250,000,000 of such 

14 funds shall be used by States for reemployment services 

15 for unemployment insurance claimants (including the inte16 grated Employment Service and Unemployment Insurance 

17 information technology required to identify and serve the 

18 needs of such claimants): Provided further, That the Sec19 retary of Labor shall establish planning and reporting pro20 cedures necessary to provide oversight of funds used for 

21 reemployment services. 

22 DEPARTMENTAL MANAGEMENT

23 OFFICE OF JOB CORPS

24 For an additional amount for ‘‘Office of Job Corps’’ 

25 for construction, alteration and repairs of buildings and 

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1 able through June 30, 2010: Provided, That the Secretary 

2 of Labor may transfer up to 15 percent of such funds to 

3 meet the operational needs of Job Corps Centers, which 

4 may include training for careers in the energy efficiency, 

5 renewable energy, and environmental protection indus6 tries: Provided further, That not later than 90 days after 

7 the date of enactment of this Act, the Secretary shall pro8 vide to the Committee on Appropriations of the House of 

9 Representatives and the Senate an operating plan describ10 ing the planned uses of funds available in this paragraph. 

11 OFFICE OF INSPECTOR GENERAL

12 For an additional amount for the ‘‘Office of Inspector 

13 General’’, $3,000,000, which shall remain available 

14 through September 30, 2010, for salaries and expenses 

15 necessary for oversight and audit of programs, grants, and 

16 projects funded in this Act and administered by the De17 partment of Labor. 

18 DEPARTMENT OF HEALTH AND HUMAN 

19 SERVICES 

20 HEALTH RESOURCES AND SERVICES ADMINISTRATION

21 HEALTH RESOURCES AND SERVICES

22 For an additional amount for ‘‘Health Resources and 

23 Services’’, $1,088,000,000, which shall remain available 

24 through September 30, 2010, of which $88,000,000 shall 

25 be for necessary expenses related to leasing and renovating 

26 a headquarters building for Public Health Service agencies 


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1 and other components of the Department of Health and 

2 Human Services, including renovation and fit-out costs, 

3 and of which $1,000,000,000 shall be for grants for con4 struction, renovation and equipment for health centers re5 ceiving operating grants under section 330 of the Public 

6 Health Service Act, notwithstanding the limitation in sec7 tion 330(e)(3). 

8 CENTERS FOR DISEASE CONTROL AND PREVENTION

9 DISEASE CONTROL, RESEARCH, AND TRAINING

10 For an additional amount for ‘‘Disease Control, Re11 search, and Training’’ for acquisition of real property, 

12 equipment, construction, and renovation of facilities, in13 cluding necessary repairs and improvements to leased lab14 oratories, $412,000,000, which shall remain available 

15 through September 30, 2010: Provided, That notwith16 standing any other provision of law, the Centers for Dis17 ease Control and Prevention may award a single contract 

18 or related contracts for development and construction of 

19 facilities that collectively include the full scope of the 

20 project: Provided further, That the solicitation and con21 tract shall contain the clause ‘‘availability of funds’’ found 

22 at 48 CFR 52.232–18. 


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1 NATIONAL INSTITUTES OF HEALTH

2 NATIONAL CENTER FOR RESEARCH RESOURCES

3 For an additional amount for ‘‘National Center for 

4 Research Resources’’, $300,000,000, which shall be avail5 able through September 30, 2010, for shared instrumenta6 tion and other capital research equipment. 

7 OFFICE OF THE DIRECTOR

8 (INCLUDING TRANSFER OF FUNDS)

9 For an additional amount for ‘‘Office of the Direc10 tor’’, $2,700,000,000, which shall be available through 

11 September 30, 2010: Provided, That $1,350,000,000 shall 

12 be transferred to the Institutes and Centers of the Na13 tional Institutes of Health and to the Common Fund es14 tablished under section 402A(c)(1) of the Public Health 

15 Service Act in proportion to the appropriations otherwise 

16 made to such Institutes, Centers, and Common Fund for 

17 fiscal year 2009: Provided further, That these funds shall 

18 be used to support additional scientific research and shall 

19 be merged with and be available for the same purposes 

20 as the appropriation or fund to which transferred: Pro21 vided further, That this transfer authority is in addition 

22 to any other transfer authority available to the National 

23 Institutes of Health: Provided further, That none of these 

24 funds may be transferred to ‘‘National Institutes of 

25 Health—Buildings and Facilities’’, the Center for Sci26 entific Review, the Center for Information Technology, the 


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1 Clinical Center, the Global Fund for HIV/AIDS, Tuber2 culosis and Malaria, or the Office of the Director (except 

3 for the transfer to the Common Fund). 

4 BUILDINGS AND FACILITIES

5 For an additional amount for ‘‘Buildings and Facili6 ties’’, $500,000,000, which shall be available through Sep7 tember 30, 2010, to fund high-priority repair, construction 

8 and improvement projects for National Institutes of 

9 Health facilities on the Bethesda, Maryland campus and 

10 other agency locations. 

11 AGENCY FOR HEALTHCARE RESEARCH AND QUALITY

12 HEALTHCARE RESEARCH AND QUALITY

13 (INCLUDING TRANSFER OF FUNDS)

14 For an additional amount for ‘‘Healthcare Research 

15 and Quality’’ to carry out titles III and IX of the Public 

16 Health Service Act, part A of title XI of the Social Secu17 rity Act, and section 1013 of the Medicare Prescription 

18 Drug, Improvement, and Modernization Act of 2003, 

19 $700,000,000 for comparative clinical effectiveness re20 search, which shall remain available through September 

21 30, 2010: Provided, That of the amount appropriated in 

22 this paragraph, $400,000,000 shall be transferred to the 

23 Office of the Director of the National Institutes of Health 

24 (‘‘Office of the Director’’) to conduct or support compara25 tive clinical effectiveness research under section 301 and 

26 title IV of the Public Health Service Act: Provided further, 


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1 That funds transferred to the Office of the Director may 

2 be transferred to the Institutes and Centers of the Na3 tional Institutes of Health and to the Common Fund es4 tablished under section 402A(c)(1) of the Public Health 

5 Service Act: Provided further, That this transfer authority 

6 is in addition to any other transfer authority available to 

7 the National Institutes of Health: Provided further, That 

8 within the amount available in this paragraph for the 

9 Agency for Healthcare Research and Quality, not more 

10 than 1 percent shall be made available for additional full11 time equivalents. 

12 In addition, $400,000,000 shall be available for com13 parative clinical effectiveness research to be allocated at 

14 the discretion of the Secretary of Health and Human 

15 Services (‘‘Secretary’’) and shall remain available through 

16 September 30, 2010: Provided, That the funding appro17 priated in this paragraph shall be used to accelerate the 

18 development and dissemination of research assessing the 

19 comparative clinical effectiveness of health care treat20 ments and strategies, including through efforts that: (1) 

21 conduct, support, or synthesize research that compares the 

22 clinical outcomes, effectiveness, and appropriateness of 

23 items, services, and procedures that are used to prevent, 

24 diagnose, or treat diseases, disorders, and other health 

25 conditions and (2) encourage the development and use of 


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1 clinical registries, clinical data networks, and other forms 

2 of electronic health data that can be used to generate or 

3 obtain outcomes data: Provided further, That the Sec4 retary shall enter into a contract with the Institute of 

5 Medicine, for which no more than $1,500,000 shall be 

6 made available from funds provided in this paragraph, to 

7 produce and submit a report to the Congress and the Sec8 retary by not later than June 30, 2009 that includes rec9 ommendations on the national priorities for comparative 

10 clinical effectiveness research to be conducted or sup11 ported with the funds provided in this paragraph and that 

12 considers input from stakeholders: Provided further, That 

13 the Secretary shall consider any recommendations of the 

14 Federal Coordinating Council for Comparative Clinical Ef15 fectiveness Research established by section 802 of this Act 

16 and any recommendations included in the Institute of 

17 Medicine report pursuant to the preceding proviso in des18 ignating activities to receive funds provided in this para19 graph and may make grants and contracts with appro20 priate entities, which may include agencies within the De21 partment of Health and Human Services and other gov22 ernmental agencies, as well as private sector entities, that 

23 have demonstrated experience and capacity to achieve the 

24 goals of comparative clinical effectiveness research: Pro25 vided further, That the Secretary shall publish information 


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1 on grants and contracts awarded with the funds provided 

2 under this heading within a reasonable time of the obliga3 tion of funds for such grants and contracts and shall dis4 seminate research findings from such grants and contracts 

5 to clinicians, patients, and the general public, as appro6 priate: Provided further, That, to the extent feasible, the 

7 Secretary shall ensure that the recipients of the funds pro8 vided by this paragraph offer an opportunity for public 

9 comment on the research: Provided further, That the Sec10 retary shall provide the Committees on Appropriations of 

11 the House of Representatives and the Senate, the Com12 mittee on Energy and Commerce and the Committee on 

13 Ways and Means of the House of Representatives, and the 

14 Committee on Health, Education, Labor, and Pensions 

15 and the Committee on Finance of the Senate with an an16 nual report on the research conducted or supported 

17 through the funds provided under this heading. 

18 ADMINISTRATION FOR CHILDREN AND FAMILIES

19 PAYMENTS TO STATES FOR THE CHILD CARE AND

20 DEVELOPMENT BLOCK GRANT

21 For an additional amount for ‘‘Payments to States 

22 for the Child Care and Development Block Grant’’ for car23 rying out the Child Care and Development Block Grant 

24 Act of 1990, $2,000,000,000, which shall remain available 

25 through September 30, 2010: Provided, That funds proVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00133 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 vided under this heading shall be used to supplement, not 

2 supplant State general revenue funds for child care assist3 ance for low-income families: Provided further, That, in 

4 addition to the amounts required to be reserved by the 

5 States under section 658G of such Act, $255,186,000 

6 shall be reserved by the States for activities authorized 

7 under section 658G, of which $93,587,000 shall be for ac8 tivities that improve the quality of infant and toddler care. 

9 SOCIAL SERVICES BLOCK GRANT

10 For an additional amount for ‘‘Social Services Block 

11 Grant,’’ $400,000,000: Provided, That notwithstanding 

12 section 2003 of the Social Security Act, funds shall be al13 located to States on the basis of unemployment: Provided 

14 further, That these funds shall be obligated to States with15 in 60 calendar days from the date they become available 

16 for obligation. 

17 CHILDREN AND FAMILIES SERVICES PROGRAMS

18 For an additional amount for ‘‘Children and Families 

19 Services Programs’’ for carrying out activities under the 

20 Head Start Act, $1,000,000,000, which shall remain avail21 able through September 30, 2010. In addition, 

22 $1,100,000,000, which shall remain available through 

23 September 30, 2010, is hereby appropriated for expansion 

24 of Early Head Start programs, as described in section 

25 645A of such Act: Provided, That of the funds provided 

26 in this sentence, up to 10 percent shall be available for 


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1 the provision of training and technical assistance to such 

2 programs consistent with section 645A(g)(2) of such Act, 

3 and up to 3 percent shall be available for monitoring the 

4 operation of such programs consistent with section 641A 

5 of such Act. 

6 For an additional amount for ‘‘Children and Families 

7 Services Programs’’ for carrying out activities under sec8 tions 674 through 679 of the Community Services Block 

9 Grant Act, $200,000,000, which shall remain available 

10 through September 30, 2010: Provided, That of the funds 

11 provided under this paragraph, no part shall be subject 

12 to paragraph (3) of section 674(b) of such Act: Provided 

13 further, That not less than 5 percent of the funds allotted 

14 to a State from the appropriation under this paragraph 

15 shall be used under section 675C(b)(1) for benefits enroll16 ment coordination activities relating to the identification 

17 and enrollment of eligible individuals and families in Fed18 eral, State and local benefit programs. 

19 ADMINISTRATION ON AGING

20 AGING SERVICES PROGRAMS

21 For an additional amount for ‘‘Aging Services Pro22 grams,’’ $100,000,000, of which $67,000,000 shall be for 

23 Congregate Nutrition Services and $33,000,000 shall be 

24 for Home-Delivered Nutrition Services: Provided, That 


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1 these funds shall remain available through September 30, 

2 2010. 

3 OFFICE OF THE SECRETARY

4 OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH

5 INFORMATION TECHNOLOGY

6 (INCLUDING TRANSFER OF FUNDS)

7 For an additional amount for ‘‘Office of the National 

8 Coordinator for Health Information Technology’’, 

9 $5,000,000,000, to carry out title XIII of this Act which 

10 shall be available until expended: Provided, That of this 

11 amount, the Secretary of Health and Human Services 

12 shall transfer $20,000,000 to the Director of the National 

13 Institute of Standards and Technology in the Department 

14 of Commerce for continued work on advancing health care 

15 information enterprise integration through activities such 

16 as technical standards analysis and establishment of con17 formance testing infrastructure so long as such activities 

18 are coordinated with the Office of the National Coordi19 nator for Health Information Technology: Provided fur20 ther, That funds available under this heading shall become 

21 available for obligation only upon submission of an annual 

22 operating plan by the Secretary to the Committees on Ap23 propriations of the House of Representatives and the Sen24 ate: Provided further, That the Secretary shall provide to 

25 the Committees on Appropriations of the House of Rep26 resentatives and the Senate a report on the actual obligaVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00136 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 tions, expenditures, and unobligated balances for each 

2 major set of activities not later than November 1, 2009 

3 and every 6 months thereafter as long as funding under 

4 this heading is available for obligation or expenditure. 

5 OFFICE OF THE INSPECTOR GENERAL

6 For an additional amount for the Office of the In7 spector General, $4,000,000 which shall remain available 

8 until September 30, 2011. 

9 PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY

10 FUND

11 (INCLUDING TRANSFER OF FUNDS)

12 For an additional amount for the ‘‘Public Health and 

13 Social Services Emergency Fund’’ to carry out a program 

14 of grants, contracts, and cooperative agreements to fund 

15 projects and activities to reduce the incidence or severity 

16 of preventable disabilities, diseases and conditions and to 

17 invest in health workforce training, $5,800,000,000, to re18 main available through September 30, 2011: Provided, 

19 That the amount made available in this paragraph may 

20 be transferred to another appropriation account of the De21 partment of Health and Human Services (‘‘HHS’’), as de22 termined by the Secretary of Health and Human Services 

23 to be appropriate and upon notification of the Committees 

24 on Appropriations of the House of Representatives and the 

25 Senate, to be used for the purposes specified in this para26 graph, and the provisos of this paragraph shall apply to 


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1 any funds so transferred: Provided further, That of the 

2 amount provided in this paragraph, not less than 

3 $1,000,000,000 shall be transferred to the Centers for 

4 Disease Control and Prevention (‘‘CDC’’) as an additional 

5 amount for screening activities related to preventable dis6 abilities and chronic diseases and conditions, including 

7 counseling to prevent and mitigate the precursors of those 

8 disorders: Provided further, That of the amount provided 

9 in this paragraph, not less than $750,000,000 shall be 

10 transferred to the CDC as an additional amount to carry 

11 out the immunization program authorized by section 

12 317(a), (j), and (k)(1) of the Public Health Service Act 

13 (‘‘PHS Act’’): Provided further, That of the amount pro14 vided in this paragraph, not less than $600,000,000 shall 

15 be transferred to the Health Resources and Services Ad16 ministration as an additional amount to address health 

17 professions workforce shortages through scholarships, loan 

18 repayment, grants to training programs for equipment 

19 and activities to foster cross-state licensure agreements, 

20 authorized under sections 330 through 338, 737, 738, and 

21 846 of the PHS Act, of which $200,000,000 shall be avail22 able until expended for extending service contracts and the 

23 recapture and reallocation of funds in the event that a 

24 participant fails to fulfill their term of service: Provided 

25 further, That of the amount provided in this paragraph, 


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1 $400,000,000 shall be transferred to the CDC as an addi2 tional amount for the Healthy Communities program, 

3 which shall be used for multi-year awards: Provided fur4 ther, That of the amount provided in this paragraph, not 

5 less than $60,000,000 shall be made available for addi6 tional research, data collection and surveys relating to pre7 vention science and the current state of health, including 

8 equipment: Provided further, That of the amount provided 

9 in this paragraph, $40,000,000 shall be transferred to the 

10 CDC for information technology improvements to vital 

11 statistics record systems, including grants to State health 

12 departments for equipment: Provided further, That of the 

13 amount provided in this paragraph, $15,000,000 shall be 

14 made available for grants to States for equipment and 

15 maintenance related to newborn screening: Provided fur16 ther, That not less than 1 percent of the amount provided 

17 in this paragraph shall be available for evaluation of the 

18 activities supported by the amounts provided in this para19 graph: Provided further, That up to 1 percent of amounts 

20 made available in this paragraph may be used for adminis21 trative expenses in the office or division of HHS admin22 istering the funds: Provided further, That the transfers re23 quired by this paragraph shall be completed within 30 

24 days of enactment of this Act: Provided further, That the 

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1 propriations of the House of Representatives and the Sen2 ate detailing the following information on the amounts ap3 propriated in this paragraph: (1) an operating plan detail4 ing activities to be supported and timelines for expendi5 ture, to be submitted no later than 120 days after the 

6 enactment of this Act; (2) 15 day prior notification of any 

7 funds to be obligated prior to the submission of the oper8 ating plan; (3) an obligation and expenditure report to be 

9 submitted quarterly until all funds are fully expended; (4) 

10 a briefing 15 days prior to any new grant solicitation; (5) 

11 an evaluation plan that details the manner in which the 

12 Secretary intends to evaluate the outcomes of activities 

13 supported, to be submitted 120 days after enactment of 

14 this Act; (6) an outcomes report on all activities sup15 ported, to be submitted 1 year after enactment and every 

16 6 months thereafter until all funds have been expended; 

17 and (7) a report on best practices to be submitted 18 

18 months after enactment and every 6 months thereafter 

19 until all funds have been expended. 

20 For an additional amount for the ‘‘Public Health and 

21 Social Services Emergency Fund’’ to prepare for and re22 spond to an influenza pandemic, $870,000,000, for activi23 ties including the development and purchase of vaccine, 

24 antivirals, necessary medical supplies, diagnostics, and 

25 other surveillance tools which shall be available until exVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00140 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 pended: Provided, That products purchased with these 

2 funds may, at the discretion of the Secretary, be deposited 

3 in the Strategic National Stockpile: Provided further, That 

4 notwithstanding section 496(b) of the Public Health Serv5 ice Act, funds may be used for the construction or renova6 tion of privately owned facilities for the production of pan7 demic influenza vaccines and other biologics, where the 

8 Secretary finds such a contract necessary to secure suffi9 cient supplies of such vaccines or biologics: Provided fur10 ther, That funds appropriated herein may be transferred 

11 to other appropriation accounts of the Department of 

12 Health and Human Services, as determined by the Sec13 retary to be appropriate, to be used for the purposes speci14 fied in this sentence. 

15 DEPARTMENT OF EDUCATION 

16 EDUCATION FOR THE DISADVANTAGED

17 For an additional amount for carrying out title I of 

18 the Elementary and Secondary Education Act of 1965, 

19 $13,000,000,000, which shall be available through Sep20 tember 30, 2010: Provided, That $5,500,000,000 shall be 

21 for targeted grants under section 1125, $5,500,000,000 

22 shall be for education finance incentive grants under sec23 tion 1125A, and $2,000,000,000 shall be for school im24 provement grants under section 1003(g): Provided further, 

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1 able under this paragraph for sections 1125 and 1125A 

2 shall use not less than 15 percent of such funds for activi3 ties serving children who are eligible pursuant to section 

4 1115(b)(1)(A)(ii) and programs in section 1112(b)(1)(K): 

5 Provided further, That each local educational agency re6 ceiving funds available under this paragraph shall be re7 quired to file with the State educational agency, no later 

8 than December 1, 2009, a school-by-school listing of per9 pupil educational expenditures from State and local 

10 sources during the 2008–2009 academic year. 

11 SCHOOL IMPROVEMENT PROGRAMS

12 For an additional amount for ‘‘School Improvement 

13 Programs,’’ $17,070,000,000, which shall be available 

14 through September 30, 2010, for carrying out activities 

15 authorized by part D of title II of the Elementary and 

16 Secondary Education Act of 1965, subtitle B of title VII 

17 of the McKinney-Vento Homeless Assistance Act 

18 (‘‘McKinney-Vento’’), and section 804 of this Act: Pro19 vided, That the Secretary shall allot $70,000,000 for 

20 grants under McKinney-Vento to each State in proportion 

21 to the number of homeless students identified by the State 

22 during the 2007–2008 school year relative to the number 

23 of such children identified nationally during that school 

24 year: Provided further, That State educational agencies 

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1 cational agencies on a competitive basis or according to 

2 a formula based on the number of homeless students iden3 tified by the local educational agencies in the State: Pro4 vided further, That the Secretary shall distribute the 

5 McKinney-Vento funds to the States not later than 60 

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

7 further, That each State shall subgrant the McKinney8 Vento funds to local educational agencies not later than 

9 120 days after receiving its grant from the Secretary. 

10 SPECIAL EDUCATION

11 For an additional amount for ‘‘Special Education’’ 

12 for carrying out parts B and C of the Individuals with 

13 Disabilities Education Act (‘‘IDEA’’), $13,500,000,000, 

14 which shall remain available through September 30, 2010: 

15 Provided, That if every State, as defined by section 

16 602(31) of the IDEA, reaches its maximum allocation 

17 under section 611(d)(3)(B)(iii) of the IDEA, and there 

18 are remaining funds, such funds shall be proportionally 

19 allocated to each State subject to the maximum amounts 

20 contained in section 611(a)(2) of the IDEA: Provided fur21 ther, That by July 1, 2009, the Secretary of Education 

22 shall reserve the amount needed for grants under section 

23 643(e) of the IDEA, with any remaining funds to be allo24 cated in accordance with section 643(c) of the IDEA: Pro25 vided further, That the amount for section 611(b)(2) of 


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1 the IDEA shall be equal to the lesser of the amount avail2 able for that activity during fiscal year 2008, increased 

3 by the amount of inflation as specified in section 

4 619(d)(2)(B), or the percentage increase in the funds ap5 propriated under section 611(i): Provided further, That 

6 each local educational agency receiving funds available 

7 under this paragraph for part B shall use not less than 

8 15 percent for special education and related services to 

9 children described in section 619(a) of the IDEA. 

10 REHABILITATION SERVICES AND DISABILITY RESEARCH

11 For an additional amount for ‘‘Rehabilitation Serv12 ices and Disability Research’’ for providing grants to 

13 States to carry out the Vocational Rehabilitation Services 

14 program under part B of title I and parts B and C of 

15 chapter 1 and chapter 2 of title VII of the Rehabilitation 

16 Act of 1973, $610,000,000, which shall remain available 

17 through September 30, 2010: Provided, That 

18 $500,000,000 shall be available for part B of title I of 

19 the Rehabilitation Act: Provided further, That funds pro20 vided herein shall not be considered in determining the 

21 amount required to be appropriated under section 

22 100(b)(1) of the Rehabilitation Act of 1973 in any fiscal 

23 year: Provided further, That, notwithstanding section 

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1 habilitation services provided with the funds provided 

2 herein shall be 100 percent. 

3 STUDENT FINANCIAL ASSISTANCE

4 For an additional amount for ‘‘Student Financial As5 sistance’’ to carry out subpart 1 of part A of title IV of 

6 the Higher Education Act of 1965, $13,869,000,000: Pro7 vided, That such funds shall be used to increase the max8 imum Pell Grant by $281 for award year 2009–2010, to 

9 increase the maximum Pell Grant by $400 for the award 

10 year 2010–2011, and to reduce or eliminate the Pell Grant 

11 shortfall: Provided further, That these funds shall remain 

12 available through September 30, 2011. 

13 For an additional amount for ‘‘Student Financial As14 sistance’’ to carry out part E of title IV of the Higher 

15 Education Act of 1965, $61,000,000: Provided, That 

16 these funds shall remain available through September 30, 

17 2010. 

18 HIGHER EDUCATION

19 For an additional amount for ‘‘Higher Education’’ 

20 for carrying out activities under part A of title II of the 

21 Higher Education Act of 1965, $100,000,000: Provided, 

22 That these funds shall remain available through Sep23 tember 30, 2010. 


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1 HIGHER EDUCATION FACILITIES

2 For carrying out activities authorized under section 

3 803 of this Act, $3,500,000,000: Provided, That these 

4 funds shall remain available through September 30, 2010. 

5 DEPARTMENTAL MANAGEMENT

6 OFFICE OF THE INSPECTOR GENERAL

7 For an additional amount for the ‘‘Office of the In8 spector General’’, $4,000,000, which shall remain avail9 able through September 30, 2012, for salaries and ex10 penses necessary for oversight and audit of programs, 

11 grants, and projects funded in this Act and administered 

12 by the Department of Education. 

13 RELATED AGENCIES 

14 CORPORATION FOR NATIONAL AND 

15 COMMUNITY SERVICE 

16 OPERATING EXPENSES

17 (INCLUDING TRANSFER OF FUNDS)

18 For an additional amount for ‘‘Operating Expenses’’ 

19 to carry out the Domestic Volunteer Service Act of 1973 

20 (‘‘1973 Act’’) and the National and Community Service 

21 Act of 1990 (‘‘1990 Act’’), $160,000,000, to remain avail22 able through September 30, 2010: Provided, That funds 

23 made available in this paragraph may be used to provide 

24 adjustments to awards under subtitle C of title I of the 

25 1990 Act made prior to September 30, 2010 for which 


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1 the Chief Executive Officer of the Corporation for Na2 tional and Community Service (‘‘CEO’’) determines that 

3 a waiver of the Federal share limitation is warranted 

4 under section 2521.70 of title 45 of the Code of Federal 

5 Regulations: Provided further, That of the amount made 

6 available in this paragraph, not less than $6,000,000 shall 

7 be transferred to ‘‘Salaries and Expenses’’ for necessary 

8 expenses relating to information technology upgrades: 

9 Provided further, That of the amount provided in this 

10 paragraph, $10,000,000 shall be available for additional 

11 members in the Civilian Community Corps authorized 

12 under subtitle E of title I of the 1990 Act: Provided fur13 ther, That of the amount provided in this paragraph, 

14 $1,000,000 shall be made available for a one-time supple15 ment grant to State commissions on national and commu16 nity service under section 126(a) of the 1990 Act without 

17 regard to the limitation on Federal share under section 

18 126(a)(2) of the 1990 Act: Provided further, That of the 

19 amount made available in this paragraph, not less than 

20 $13,000,000 shall be for research activities authorized 

21 under subtitle H of title I of the 1990 Act: Provided fur22 ther, That of the amount made available in this paragraph, 

23 not less than $65,000,000 shall be for programs under 

24 title I, part A of the 1973 Act: Provided further, That 

25 funds provided in the previous proviso shall not be made 


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1 available in connection with cost-share agreements author2 ized under section 192A(g)(10) of the 1990 Act: Provided 

3 further, That of the funds available under this heading, 

4 up to 20 percent of funds allocated to grants authorized 

5 under section 124(b) of title I, subtitle C of the 1990 Act 

6 may be used to administer, reimburse, or support any na7 tional service program under section 129(d)(2) of the 

8 1990 Act: Provided further, That, except as provided here9 in and in addition to requirements identified herein, funds 

10 provided in this paragraph shall be subject to the terms 

11 and conditions under which funds were appropriated in 

12 fiscal year 2008: Provided further, That the CEO shall 

13 provide the Committees on Appropriations of the House 

14 of Representatives and the Senate a fiscal year 2009 oper15 ating plan for the funds appropriated in this paragraph 

16 prior to making any Federal obligations of such funds in 

17 fiscal year 2009, but not later than 90 days after the date 

18 of enactment of this Act, and a fiscal year 2010 operating 

19 plan for such funds prior to making any Federal obliga20 tions of such funds in fiscal year 2010, but not later than 

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

22 and the increased number of members supported by the 

23 AmeriCorps programs: Provided further, That the CEO 

24 shall provide to the Committees on Appropriations of the 

25 House of Representatives and the Senate a report on the 


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1 actual obligations, expenditures, and unobligated balances 

2 for each activity funded under this heading not later than 

3 November 1, 2009, and every 6 months thereafter as long 

4 as funding provided under this heading is available for ob5 ligation or expenditure. 

6 NATIONAL SERVICE TRUST

7 (INCLUDING TRANSFER OF FUNDS)

8 For an additional amount for ‘‘National Service 

9 Trust’’ established under subtitle D of title I of the Na10 tional and Community Service Act of 1990 (‘‘1990 Act’’), 

11 $40,000,000, which shall remain available until expended: 

12 Provided, That the Corporation for National and Commu13 nity Service may transfer additional funds from the 

14 amount provided within ‘‘Operating Expenses’’ for grants 

15 made under subtitle C of title I of the 1990 Act to this 

16 appropriation upon determination that such transfer is 

17 necessary to support the activities of national service par18 ticipants and after notice is transmitted to the Committees 

19 on Appropriations of the House of Representatives and the 

20 Senate: Provided further, That the amount appropriated 

21 for or transferred to the National Service Trust may be 

22 invested under section 145(b) of the 1990 Act without re23 gard to the requirement to apportion funds under 31 

24 U.S.C. 1513(b). 


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1 SOCIAL SECURITY ADMINISTRATION 

2 LIMITATION ON ADMINISTRATIVE EXPENSES

3 (INCLUDING TRANSFER OF FUNDS)

4 For an additional amount for ‘‘Limitation on Admin5 istrative Expenses’’, $890,000,000 shall be available as 

6 follows: 

7 (1) $750,000,000 shall remain available until 

8 expended for necessary expenses of the replacement 

9 of the National Computer Center and the informa10 tion technology costs associated with such Center: 

11 Provided, That the Commissioner of Social Security 

12 shall notify the Committees on Appropriations of the 

13 House of Representatives and the Senate not later 

14 than 10 days prior to each public notice soliciting 

15 bids related to site selection and construction: Pro16 vided further, That unobligated balances of funds 

17 not needed for this purpose may be used as de18 scribed in subparagraph (2); and 

19 (2) $140,000,000 shall be available through 

20 September 30, 2010 for information technology ac21 quisitions and research, which may include research 

22 and activities to facilitate the adoption of electronic 

23 medical records in disability claims and the transfer 

24 of funds to ‘‘Supplemental Security Income’’ to 

25 carry out activities under section 1110 of the Social 


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1 Security Act: Provided further, That not later than 

2 10 days prior to the obligation of such funds, the 

3 Commissioner shall provide to the Committees on 

4 Appropriations of the House of Representatives and 

5 the Senate an operating plan describing the planned 

6 uses of such funds. 

7 OFFICE OF INSPECTOR GENERAL

8 For an additional amount for the ‘‘Office of Inspector 

9 General’’, $3,000,000, which shall remain available 

10 through September 30, 2012, for salaries and expenses 

11 necessary for oversight and audit of programs, projects, 

12 and activities funded in this Act and administered by the 

13 Social Security Administration. 

14 GENERAL PROVISIONS—THIS TITLE 

15 SEC. 801. REPORT ON THE IMPACT OF PAST AND

16 FUTURE MINIMUM WAGE INCREASES. (a) IN GENERAL.— 

17 Section 8104 of the U.S. Troop Readiness, Veterans’ 

18 Care, Katrina Recovery, and Iraq Accountability Appro19 priations Act, 2007 (Public Law 110–28; 121 Stat. 189) 

20 is amended to read as follows: 

21 ‘‘SEC. 8104. REPORT ON THE IMPACT OF PAST AND FUTURE 

22 MINIMUM WAGE INCREASES. 

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

24 after the date of enactment of this Act, and every year 

25 thereafter until the minimum wage in the respective terriVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00151 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 tory is $7.25 per hour, the Government Accountability Of2 fice shall conduct a study to— 

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

4 increases that occurred in American Samoa and the 

5 Commonwealth of the Northern Mariana Islands in 

6 2007 and 2008, as required under Public Law 110– 

7 28, on the rates of employment and the living stand8 ards of workers, with full consideration of the other 

9 factors that impact rates of employment and the liv10 ing standards of workers such as inflation in the 

11 cost of food, energy, and other commodities; and 

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

13 increases on rates of employment and the living 

14 standards of workers in American Samoa and the 

15 Commonwealth of the Northern Mariana Islands, 

16 with full consideration of the other factors that may 

17 impact the rates of employment and the living 

18 standards of workers, including assessing how the 

19 profitability of major private sector firms may be 

20 impacted by wage increases in comparison to other 

21 factors such as energy costs and the value of tax 

22 benefits. 

23 ‘‘(b) REPORT.—No earlier than March 15, 2009, and 

24 not later than April 15, 2009, the Government Account25 ability Office shall transmit its first report to Congress 


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1 concerning the findings of the study required under sub2 section (a). The Government Accountability Office shall 

3 transmit any subsequent reports to Congress concerning 

4 the findings of a study required by subsection (a) between 

5 March 15 and April 15 of each year. 

6 ‘‘(c) ECONOMIC INFORMATION.—To provide suffi7 cient economic data for the conduct of the study under 

8 subsection (a)— 

9 ‘‘(1) the Department of Labor shall include and 

10 separately report on American Samoa and the Com11 monwealth of the Northern Mariana Islands in its 

12 household surveys and establishment surveys; 

13 ‘‘(2) the Bureau of Economic Analysis of the 

14 Department of Commerce shall include and sepa15 rately report on American Samoa and the Common16 wealth of the Northern Mariana Islands in its gross 

17 domestic product data; and 

18 ‘‘(3) the Bureau of the Census of the Depart19 ment of Commerce shall include and separately re20 port on American Samoa and the Commonwealth of 

21 the Northern Mariana Islands in its population esti22 mates and demographic profiles from the American 

23 Community Survey, 

24 with the same regularity and to the same extent as the 

25 Department or each Bureau collects and reports such data 


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1 for the 50 States. In the event that the inclusion of Amer2 ican Samoa and the Commonwealth of the Northern Mar3 iana Islands in such surveys and data compilations re4 quires time to structure and implement, the Department 

5 of Labor, the Bureau of Economic Analysis, and the Bu6 reau of the Census (as the case may be) shall in the in7 terim annually report the best available data that can fea8 sibly be secured with respect to such territories. Such in9 terim reports shall describe the steps the Department or 

10 the respective Bureau will take to improve future data col11 lection in the territories to achieve comparability with the 

12 data collected in the United States. The Department of 

13 Labor, the Bureau of Economic Analysis, and the Bureau 

14 of the Census, together with the Department of the Inte15 rior, shall coordinate their efforts to achieve such improve16 ments.’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall take effect on the date of enactment of 

19 this Act. 

20 SEC. 802. FEDERAL COORDINATING COUNCIL FOR

21 COMPARATIVE CLINICAL EFFECTIVENESS RESEARCH. (a) 

22 ESTABLISHMENT.—There is hereby established a Federal 

23 Coordinating Council for Comparative Clinical Effective24 ness Research (in this section referred to as the ‘‘Coun25 cil’’). 


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1 (b) PURPOSE; DUTIES.—The Council shall— 

2 (1) assist the offices and agencies of the Fed3 eral Government, including the Departments of 

4 Health and Human Services, Veterans Affairs, and 

5 Defense, and other Federal departments or agencies, 

6 to coordinate the conduct or support of comparative 

7 clinical effectiveness and related health services re8 search; and 

9 (2) advise the President and Congress on— 

10 (A) strategies with respect to the infra11 structure needs of comparative clinical effective12 ness research within the Federal Government; 

13 (B) appropriate organizational expendi14 tures for comparative clinical effectiveness re15 search by relevant Federal departments and 

16 agencies; and 

17 (C) opportunities to assure optimum co18 ordination of comparative clinical effectiveness 

19 and related health services research conducted 

20 or supported by relevant Federal departments 

21 and agencies, with the goal of reducing duplica22 tive efforts and encouraging coordinated and 

23 complementary use of resources. 

24 (c) MEMBERSHIP.— 


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1 (1) NUMBER AND APPOINTMENT.—The Council 

2 shall be composed of not more than 15 members, all 

3 of whom are senior Federal officers or employees 

4 with responsibility for health-related programs, ap5 pointed by the President, acting through the Sec6 retary of Health and Human Services (in this sec7 tion referred to as the ‘‘Secretary’’). Members shall 

8 first be appointed to the Council not later than 30 

9 days after the date of the enactment of this Act. 

10 (2) MEMBERS.— 

11 (A) IN GENERAL.—The members of the 

12 Council shall include one senior officer or em13 ployee from each of the following agencies: 

14 (i) The Agency for Healthcare Re15 search and Quality. 

16 (ii) The Centers for Medicare and 

17 Medicaid Services. 

18 (iii) The National Institutes of 

19 Health. 

20 (iv) The Office of the National Coor21 dinator for Health Information Tech22 nology. 

23 (v) The Food and Drug Administra24 tion. 


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1 (vi) The Veterans Health Administra2 tion within the Department of Veterans 

3 Affairs. 

4 (vii) The office within the Department 

5 of Defense responsible for management of 

6 the Department of Defense Military 

7 Health Care System. 

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

9 members of the Council shall be physicians or 

10 other experts with clinical expertise. 

11 (3) CHAIRMAN; VICE CHAIRMAN.—The Sec12 retary shall serve as Chairman of the Council and 

13 shall designate a member to serve as Vice Chairman. 

14 (d) REPORTS.— 

15 (1) INITIAL REPORT.—Not later than June 30, 

16 2009, the Council shall submit to the President and 

17 the Congress a report containing information de18 scribing Federal activities on comparative clinical ef19 fectiveness research and recommendations for addi20 tional investments in such research conducted or 

21 supported from funds made available for allotment 

22 by the Secretary for comparative clinical effective23 ness research in this Act. 

24 (2) ANNUAL REPORT.—The Council shall sub25 mit to the President and Congress an annual report 


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1 regarding its activities and recommendations con2 cerning the infrastructure needs, appropriate organi3 zational expenditures and opportunities for better 

4 coordination of comparative clinical effectiveness re5 search by relevant Federal departments and agen6 cies. 

7 (e) STAFFING; SUPPORT.—From funds made avail8 able for allotment by the Secretary for comparative clinical 

9 effectiveness research in this Act, the Secretary shall make 

10 available not more than 1 percent to the Council for staff 

11 and administrative support. 

12 SEC. 803. HIGHER EDUCATION MODERNIZATION, 

13 RENOVATION, AND REPAIR. (a) PURPOSE.—Grants 

14 awarded under this section shall be for the purpose of 

15 modernizing, renovating, and repairing institution of high16 er education facilities that are primarily used for instruc17 tion and research. 

18 Funds may also be used for leasing, purchasing or 

19 upgrading equipment, designed to strengthen and support 

20 academic and technical skill achievement. 

21 (b) GRANTS TO STATE HIGHER EDUCATION AGEN22 CIES.— 

23 (1) FORMULA.—From the amounts appro24 priated to carry out this section, the Secretary of 

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1 cation agencies based on the number of students at2 tending institutions of higher education, with the 

3 State higher education agency in each State receiv4 ing an amount that is in proportion to the number 

5 of full-time equivalent undergraduate students at6 tending institutions of higher education in such 

7 State for the most recent fiscal year for which there 

8 are data available, relative to the total number of 

9 full-time equivalent undergraduate students attend10 ing institutions of higher education in all States for 

11 such fiscal year. 

12 (2) APPLICATION.—To be eligible to receive an 

13 allocation from the Secretary under paragraph (1), 

14 a State higher education agency shall submit an ap15 plication to the Secretary at such time and in such 

16 manner as the Secretary may reasonably require. 

17 (3) REALLOCATION.—Amounts allocated to a 

18 State higher education agency under this section 

19 that are not obligated by such agency within 12 

20 months of the date the agency receives such 

21 amounts shall be returned to the Secretary, and the 

22 Secretary shall reallocate such amounts to State 

23 higher education agencies in other States on the 

24 same basis as the original allocations under para25 graph (1). 


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1 (4) ADMINISTRATION AND OVERSIGHT EX2 PENSES.—From the amounts appropriated to carry 

3 out this section, not more than $3,000,000 shall be 

4 available to the Secretary for administrative and 

5 oversight expenses related to carrying out this sec6 tion. 

7 (c) USE OF GRANTS BY STATE HIGHER EDUCATION

8 AGENCIES.— 

9 (1) SUBGRANTS TO INSTITUTIONS OF HIGHER

10 EDUCATION.— 

11 (A) IN GENERAL.—Except as provided in 

12 paragraph (2), each State higher education 

13 agency receiving an allocation under subsection 

14 (b)(1) shall use the amount allocated to award 

15 subgrants to institutions of higher education 

16 within the State to carry out projects in accord17 ance with subsection (d)(1). 

18 (B) SUBGRANT AWARD ALLOCATION.—A 

19 State higher education agency shall award sub20 grants to institutions of higher education under 

21 this section based on the demonstrated need of 

22 each institution for facility modernization, ren23 ovation, repair, and equipment. 

24 (C) COMMUNITY COLLEGES.—Notwith25 standing, subparagraph (B), the percentage of 


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1 funds allocated to community colleges in each 

2 State shall be no less than the percentage of 

3 full-time equivalent students attending commu4 nity colleges relative to the total number of full5 time equivalent undergraduate students attend6 ing public institutions of higher education in 

7 the State. 

8 (D) PRIORITY CONSIDERATIONS.—In 

9 awarding subgrants under this section, each 

10 State higher education agency shall give pri11 ority consideration to institutions of higher edu12 cation with any of the following characteristics: 

13 (i) The institution is eligible for Fed14 eral assistance under title III or title V of 

15 the Higher Education Act of 1965. 

16 (ii) The institution was impacted by a 

17 major disaster or emergency declared by 

18 the President (as defined in section 102(2) 

19 of the Robert T. Stafford Disaster Relief 

20 and Emergency Assistance Act (42 U.S.C. 

21 5122(2))), including an institution affected 

22 by a Gulf hurricane disaster, as such term 

23 is defined in section 824(g)(1) of the High24 er Education Act of 1965 (20 U.S.C. 

25 11611–3(g)(1)). 


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1 (iii) The institution demonstrates that 

2 the proposed project or projects to be car3 ried out with a subgrant under this section 

4 will increase the energy efficiency of the in5 stitution’s facilities and comply with the 

6 LEED Green Building Rating System. 

7 (2) ADMINISTRATIVE AND OVERSIGHT EX8 PENSES.—Of the allocation amount received under 

9 subsection (b)(1), a State higher education agency 

10 may reserve not more than 5 percent of such 

11 amount, or $500,000, whichever is less, for adminis12 trative and oversight expenses related to carrying 

13 out this section. 

14 (d) USE OF SUBGRANTS BY INSTITUTIONS OF HIGH15 ER EDUCATION.— 

16 (1) PERMISSIBLE USES OF FUNDS.—An institu17 tion of higher education receiving a subgrant under 

18 this section shall use such subgrant to modernize, 

19 renovate, or repair facilities of the institution that 

20 are primarily used for instruction, research, or stu21 dent housing, which may include any of the fol22 lowing: 

23 (A) Repair, replacement, or installation of 

24 roofs, electrical wiring, plumbing systems, sew25 age systems, or lighting systems. 


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1 (B) Repair, replacement, or installation of 

2 heating, ventilation, or air conditioning systems 

3 (including insulation). 

4 (C) Compliance with fire and safety codes, 

5 including— 

6 (i) professional installation of fire or 

7 life safety alarms; and 

8 (ii) modernizations, renovations, and 

9 repairs that ensure that the institution’s 

10 facilities are prepared for emergencies, 

11 such as improving building infrastructure 

12 to accommodate security measures. 

13 (D) Retrofitting necessary to increase the 

14 energy efficiency of the institution’s facilities. 

15 (E) Renovations to the institution’s facili16 ties necessary to comply with accessibility re17 quirements in the Americans with Disabilities 

18 Act of 1990 (42 U.S.C. 12101 et seq.) and sec19 tion 504 of the Rehabilitation Act of 1973 (29 

20 U.S.C. 794). 

21 (F) Abatement or removal of asbestos from 

22 the institution’s facilities. 

23 (G) Modernization, renovation, and repair 

24 relating to improving science and engineering 


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1 laboratories, libraries, and instructional facili2 ties. 

3 (H) Upgrading or installation of edu4 cational technology infrastructure. 

5 (I) Installation or upgrading of renewable 

6 energy generation and heating systems, includ7 ing solar, photovoltaic, wind, biomass (including 

8 wood pellet), or geothermal systems, or compo9 nents of such systems. 

10 (J) Other modernization, renovation, or re11 pair projects or purchase of equipment that are 

12 primarily for instruction or research. 

13 (2) PROHIBITED USES OF FUNDS.—No funds 

14 awarded under this section may be used for— 

15 (A) the maintenance of systems, equip16 ment, or facilities, including maintenance asso17 ciated with any permissible uses of funds de18 scribed in paragraph (1); 

19 (B) modernization, renovation, or repair of 

20 stadiums or other facilities primarily used for 

21 athletic contests or exhibitions or other events 

22 for which admission is charged to the general 

23 public; 

24 (C) modernization, renovation, or repair of 

25 facilities— 


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1 (i) used for sectarian instruction, reli2 gious worship, or a school or department 

3 of divinity; or 

4 (ii) in which a substantial portion of 

5 the functions of the facilities are subsumed 

6 in a religious mission; or 

7 (D) construction of new facilities. 

8 (e) APPLICATION OF GEPA.—The grant program au9 thorized in this section is an applicable program (as that 

10 term is defined in section 400 of the General Education 

11 Provisions Act (20 U.S.C. 1221)) subject to section 439 

12 of such Act (20 U.S.C. 1232b). The Secretary shall, not13 withstanding section 437 of such Act (20 U.S.C. 1232) 

14 and section 553 of title 5, United States Code, establish 

15 such program rules as may be necessary to implement 

16 such grant program by notice in the Federal Register. 

17 (f) REPORTING.— 

18 (1) REPORTS BY INSTITUTIONS.—Not later 

19 than September 30, 2011, each institution of higher 

20 education receiving a subgrant under this section 

21 shall submit to the State higher education agency 

22 awarding such subgrant a report describing the 

23 projects for which such subgrant was received, in24 cluding— 


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1 (A) a description of each project carried 

2 out, or planned to be carried out, with such 

3 subgrant, including the types of modernization, 

4 renovation, and repair to be completed by each 

5 such project; 

6 (B) the total amount of funds received by 

7 the institution under this section and the 

8 amount of such funds expended, as of the date 

9 of the report, on the such projects; 

10 (C) the actual or planned cost of each such 

11 project and any demonstrable or expected aca12 demic, energy, or environmental benefits result13 ing from such project; and 

14 (D) the total number of contracts, and 

15 amount of funding for such contracts, awarded 

16 by the institution to carry out such projects, as 

17 of the date of such report, including the num18 ber of contracts, and amount of funding for 

19 such contracts, awarded to local, small, minor20 ity-owned, women-owned, and veteran-owned 

21 businesses, as such terms are defined by the 

22 Small Business Act. 

23 (2) REPORTS BY STATES.—Not later than De24 cember 31, 2011, each State higher education agen25 cy receiving a grant under this section shall submit 


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1 to the Secretary a report containing a compilation of 

2 all of the reports under paragraph (1) submitted to 

3 the agency by institutions of higher education. 

4 (3) REPORTS BY THE SECRETARY.—Not later 

5 than March 31, 2012, the Secretary shall submit to 

6 the Committee on Education and Labor in the 

7 House of Representatives and the Committee on 

8 Health, Education, Labor, and Pensions in the Sen9 ate and Committees on Appropriations of the House 

10 of Representatives and the Senate a report on 

11 grants and subgrants made under this section, in12 cluding the information described in paragraph (1). 

13 (g) DEFINITIONS.—In this section: 

14 (1) INSTITUTION OF HIGHER EDUCATION.—The 

15 term ‘‘institution of higher education’’ has the 

16 meaning given such term in section 101 of the High17 er Education Act of 1965. 

18 (2) LEED GREEN BUILDING RATING SYS19 TEM.—The term ‘‘LEED Green Building Rating 

20 System’’ means the United States Green Building 

21 Council Leadership in Energy and Environmental 

22 Design green building rating standard referred to as 

23 the LEED Green Building Rating System. 

24 (3) SECRETARY.—The term ‘‘Secretary’’ means 

25 the Secretary of Education. 


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1 (4) STATE.—The term ‘‘State’’ has the mean2 ing given such term in section 103 of the Higher 

3 Education Act of 1965 (20 U.S.C. 1003). 

4 (5) STATE HIGHER EDUCATION AGENCY.—The 

5 term ‘‘State higher education agency’’ has the mean6 ing given such term in section 103 of the Higher 

7 Education Act of 1965 (20 U.S.C. 1003). 

8 (6) COMMUNITY COLLEGE.—The term ‘‘Com9 munity College’’ means a public non-profit institu10 tion of higher education as defined in section 101(a) 

11 of the Higher Education Act, whose highest degree 

12 offered is predominantly the associate degree. 

13 SEC. 804. GRANTS FOR SCHOOL RENOVATION, RE14 PAIR, AND CONSTRUCTION. (a) ALLOCATION OF FUNDS.— 

15 (1) RESERVATIONS.— 

16 (A) OUTLYING AREAS AND BUREAU OF IN17 DIAN EDUCATION.—From the funds appro18 priated to carry out this section, the Secretary 

19 shall reserve 1 percent to provide assistance 

20 under this section to the outlying areas and for 

21 payments to the Secretary of the Interior to 

22 provide assistance consistent with this section 

23 to schools funded by the Bureau of Indian Edu24 cation. Funds reserved under this subparagraph 

25 shall be distributed by the Secretary among the 


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1 outlying areas and the Secretary of the Interior 

2 on the basis of relative need, as determined by 

3 the Secretary, in accordance with the purposes 

4 of this section. 

5 (B) IMPACT AID SCHOOLS.— 

6 (i) IN GENERAL.—From the funds ap7 propriated to carry out this section, the 

8 Secretary shall reserve 2 percent to make 

9 payments and award grants to local edu10 cational agencies under section 8007 of the 

11 Elementary and Secondary Education Act 

12 of 1965 (20 U.S.C. 7707). 

13 (ii) CONSTRUCTION PAYMENTS AU14 THORIZED.— 

15 (I) IN GENERAL.—From 40 per16 cent of the amount reserved under 

17 clause (i), the Secretary shall make 

18 payments in accordance with section 

19 8007(a) of the Elementary and Sec20 ondary Education Act of 1965 (20 

21 U.S.C. 7707(a)), except that the 

22 amount of such payments shall be de23 termined in accordance with subclause 

24 (II). 


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1 (II) AMOUNT OF PAYMENTS.— 

2 The Secretary shall make a payment 

3 to each local educational agency eligi4 ble for a payment under section 

5 8007(a) of the Elementary and Sec6 ondary Education Act of 1965 (20 

7 U.S.C. 7707(a)) in an amount that 

8 bears the same relationship to the 

9 funds made available under subclause 

10 (I) as the number of children deter11 mined under subparagraphs (B), (C), 

12 and (D)(i) of section 8003(a)(1) of 

13 the Elementary and Secondary Edu14 cation Act of 1965 (20 U.S.C. 

15 7703(a)(1)(B), (C), and (D)(i)) who 

16 were in average daily attendance in 

17 the local educational agency for the 

18 most recent year for which such infor19 mation is available bears to the num20 ber of such children in all the local 

21 educational agencies eligible for a pay22 ment under section 8007(a) of the El23 ementary and Secondary Education 

24 Act of 1965 (20 U.S.C. 7707(a)). 


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AMDT. NO. 98 

1 (iii) SCHOOL FACILITY EMERGENCY

2 AND MODERNIZATION GRANTS AUTHOR3 IZED.— 

4 (I) IN GENERAL.—From 60 per5 cent of the amount reserved under 

6 clause (i), the Secretary— 

7 (aa) shall award emergency 

8 grants in accordance with section 

9 8007(b) of the Elementary and 

10 Secondary Education Act of 

11 1965 (20 U.S.C. 7703(b)) to eli12 gible local educational agencies to 

13 enable the agencies to carry out 

14 emergency repairs of school fa15 cilities; and 

16 (bb) may award moderniza17 tion grants in accordance with 

18 section 8007(b) of the Elemen19 tary and Secondary Education 

20 Act of 1965 (20 U.S.C. 7703(b)) 

21 to eligible local educational agen22 cies to enable the agencies to 

23 carry out the modernization of 

24 school facilities. 


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AMDT. NO. 98 

1 (II) PROVISIONS NOT TO

2 APPLY.—Paragraphs (2), (3), (4), 

3 (5)(A)(i), and (5)(A)(vi) of section 

4 8007(b) of the Elementary and Sec5 ondary Education Act of 1965 (20 

6 U.S.C. 7703(b)(2), (3), (4), (5)(A)(i), 

7 and (5)(A)(vi)) shall not apply to 

8 grants made under this clause. 

9 (III) ELIGIBILITY.—A local edu10 cational agency is eligible to receive a 

11 grant under this clause if the local 

12 educational agency— 

13 (aa) is eligible to receive a 

14 payment under section 8002 or 

15 8003 of the Elementary and Sec16 ondary Education Act of 1965 

17 (20 U.S.C. 7702 and 7703) for 

18 fiscal year 2008; and 

19 (bb) has— 

20 (AA) a total taxable as21 sessed value of real property 

22 that may be taxed for school 

23 purposes of less than 

24 $100,000,000; or 


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1 (BB) an assessed value 

2 of real property per student 

3 that may be taxed for school 

4 purposes that is less than 

5 the average of the assessed 

6 value of real property per 

7 student that may be taxed 

8 for school purposes in the 

9 State in which the local edu10 cational agency is located. 

11 (IV) CRITERIA FOR GRANTS.—In 

12 awarding grants under this clause, the 

13 Secretary shall consider the following 

14 criteria: 

15 (aa) Whether the facility 

16 poses a health or safety threat to 

17 students and school personnel, 

18 including noncompliance with 

19 building codes and inaccessibility 

20 for persons with disabilities, or 

21 whether the existing building ca22 pacity meets the needs of the 

23 current enrollment and supports 

24 the provision of comprehensive 

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1 rent standards in the State in 

2 which the local educational agen3 cy is located. 

4 (bb) The extent to which the 

5 new design and proposed con6 struction utilize energy efficient 

7 and recyclable materials. 

8 (cc) The extent to which the 

9 new design and proposed con10 struction utilizes non-traditional 

11 or alternative building methods 

12 to expedite construction and 

13 project completion and maximize 

14 cost efficiency. 

15 (dd) The feasibility of 

16 project completion within 24 

17 months from award. 

18 (ee) The availability of other 

19 resources for the proposed 

20 project. 

21 (C) ADMINISTRATION AND OVERSIGHT.— 

22 The Secretary may, in addition, reserve up to 

23 $5,000,000 of the amount appropriated to carry 

24 out this section for administration and over25 sight of this section. 


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1 (2) ALLOCATION TO STATE EDUCATIONAL

2 AGENCIES.— 

3 (A) IN GENERAL.—Except as provided in 

4 subparagraph (B), after making the reserva5 tions described in paragraph (1), from the re6 mainder of the appropriated funds described in 

7 paragraph (1), the Secretary shall allocate to 

8 each State educational agency serving a State 

9 an amount that bears the same relation to the 

10 remainder as the amount the State received 

11 under part A of title I of the Elementary and 

12 Secondary Education Act of 1965 (20 U.S.C. 

13 6311 et seq.) for fiscal year 2008 bears to the 

14 amount all States received under such part for 

15 fiscal year 2008. 

16 (B) MINIMUM AMOUNT.—No State edu17 cational agency shall receive less than 0.5 per18 cent of the amount allocated under this para19 graph. 

20 (3) SPECIAL RULE.—The Secretary shall make 

21 and distribute the reservations and allocations de22 scribed in paragraphs (1) and (2) not later than 60 

23 days after the date of enactment of this Act. 

24 (b) WITHIN-STATE ALLOTMENTS.— 

25 (1) ADMINISTRATIVE COSTS.— 


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1 (A) STATE EDUCATIONAL AGENCY ADMIN2 ISTRATION.—Except as provided in subpara3 graph (C), each State educational agency may 

4 reserve not more than 1 percent of its allocation 

5 under subsection (a)(2) or $2,000,000, which6 ever is less, for the purpose of administering 

7 the distribution of grants under this subsection. 

8 (B) REQUIRED USES.—Each State edu9 cational agency shall use a portion of the re10 served funds under subparagraph (A) to estab11 lish or support a State-level database of public 

12 school facility inventory, condition, design, and 

13 utilization. 

14 (C) STATE ENTITY ADMINISTRATION.—If a 

15 State educational agency transfers funds to a 

16 State entity described in paragraph (3)(A)(ii), 

17 the State educational agency shall transfer to 

18 such entity 0.75 percent of the amount reserved 

19 under subparagraph (A) for the purpose of ad20 ministering the distribution of grants under this 

21 subsection. 

22 (2) ALLOTMENTS TO THE LOCAL EDUCATIONAL

23 AGENCIES WITH THE MOST POOR CHILDREN.— 

24 (A) IN GENERAL.— 


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1 (i) ELIGIBLE LOCAL EDUCATIONAL

2 AGENCY.—In this subparagraph, the term 

3 ‘‘eligible local educational agency’’ means a 

4 local educational agency that is 1 of the 

5 100 local educational agencies in the 

6 United States that serve the most students 

7 who are poor children. 

8 (ii) ALLOTMENT.—Not later than 60 

9 days after the date a State educational 

10 agency receives an allocation from the Sec11 retary under this section, the State edu12 cational agency shall allot to each eligible 

13 local educational agency in the State an 

14 amount determined under clause (iii) to be 

15 used consistent with subsection (c) for 

16 school repair, renovation, and construction. 

17 (iii) DETERMINATION OF AMOUNT.— 

18 An allotment under this subparagraph to 

19 an eligible local educational agency shall be 

20 in an amount that bears the same relation 

21 to the amount allocated to the State under 

22 this section and not reserved under para23 graph (1), as the amount of funds under 

24 part A of title I of the Elementary and 

25 Secondary Education Act of 1965 (20 


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AMDT. NO. 98 

1 U.S.C. 6311 et seq.) that the eligible local 

2 educational agency received from the State 

3 for the most recent fiscal year for which 

4 data is available bears to the total amount 

5 of such funds received by all local edu6 cational agencies in the State under such 

7 part for the most recent fiscal year for 

8 which data is available. 

9 (B) NO ELIGIBILITY FOR COMPETITIVE

10 GRANTS.—No local educational agency receiving 

11 funding under subparagraph (A) shall be eligi12 ble for funding under paragraph (3). 

13 (C) PRIORITY IN FUNDING GREEN

14 PROJECTS.—A local educational agency that re15 ceives funding under subparagraph (A) shall 

16 give priority to funding school repair, renova17 tion, or construction projects that are certified, 

18 verified, or consistent with any applicable provi19 sions of— 

20 (i) the LEED Green Building Rating 

21 System; 

22 (ii) Energy Star; 

23 (iii) the CHPS Criteria; 

24 (iv) Green Globes; or 


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AMDT. NO. 98 

1 (v) an equivalent program adopted by 

2 the State or another jurisdiction with au3 thority over the local educational agency. 

4 (3) RESERVATION FOR COMPETITIVE SCHOOL

5 RENOVATION, REPAIR, AND CONSTRUCTION GRANTS

6 TO LOCAL EDUCATIONAL AGENCIES.— 

7 (A) IN GENERAL.—After making the res8 ervation described in paragraph (1), from the 

9 remainder of the funds allocated to a State edu10 cational agency under this section, the State 

11 educational agency shall— 

12 (i) award grants to local educational 

13 agencies to be used, consistent with sub14 section (c), for school renovation, repair, 

15 and construction; or 

16 (ii) if such State educational agency is 

17 not responsible for the financing of edu18 cation facilities, transfer such funds to the 

19 State entity responsible for the financing 

20 of education facilities (referred to in this 

21 section as the ‘‘State entity’’) to award 

22 grants to local educational agencies to be 

23 used as described in clause (i). 

24 (B) COMPETITIVE GRANTS TO LOCAL EDU25 CATIONAL AGENCIES.—The State educational 


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1 agency or State entity shall carry out a pro2 gram awarding grants, on a competitive basis, 

3 to local educational agencies for the purpose de4 scribed in subparagraph (A). Of the total 

5 amount allocated to the State under this section 

6 and not reserved under paragraph (1), the 

7 State educational agency or State entity, shall 

8 carry out the following: 

9 (i) Award to high-need local edu10 cational agencies, in the aggregate, not less 

11 than an amount which bears the same re12 lationship to such total amount as the ag13 gregate amount such high-need local edu14 cational agencies received under part A of 

15 title I of the Elementary and Secondary 

16 Education Act of 1965 (20 U.S.C. 6311 et 

17 seq.) for fiscal year 2008 bears to the ag18 gregate amount received for such fiscal 

19 year under such part by all local edu20 cational agencies in the State, reduced by 

21 the total amount the State educational 

22 agency has allotted under paragraph (2). 

23 (ii) Award to rural local educational 

24 agencies, in the aggregate, not less than an 

25 amount which bears the same relationship 


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AMDT. NO. 98 

1 to such total amount as the aggregate 

2 amount such rural local educational agen3 cies received under such part for fiscal 

4 year 2008 bears to the aggregate amount 

5 received for such fiscal year under such 

6 part by all local educational agencies in the 

7 State. 

8 (iii) Award the remaining funds to 

9 local educational agencies not receiving an 

10 award under clause (i) or (ii), including 

11 high-need local educational agencies and 

12 rural local educational agencies that did 

13 not receive such an award. 

14 (C) CRITERIA FOR AWARDING COMPETI15 TIVE GRANTS.—In awarding competitive grants 

16 under this paragraph, a State educational agen17 cy or State entity shall take into account the 

18 following criteria: 

19 (i) PERCENTAGE OF POOR CHIL20 DREN.—The percentage of poor children in 

21 a local educational agency. 

22 (ii) NEED FOR SCHOOL RENOVATION, 

23 REPAIR, AND CONSTRUCTION.—The need 

24 of a local educational agency for school 

25 renovation, repair, and construction, as 


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AMDT. NO. 98 

1 demonstrated by the condition of the pub2 lic school facilities of the local educational 

3 agency. 

4 (iii) GREEN SCHOOLS.—The extent to 

5 which the local educational agency will 

6 make use of green practices that are cer7 tified, verified, or consistent with any ap8 plicable provisions of— 

9 (I) the LEED Green Building 

10 Rating System; 

11 (II) Energy Star; 

12 (III) the CHPS Criteria; 

13 (IV) Green Globes; or 

14 (V) an equivalent program adopt15 ed by the State or another jurisdiction 

16 with authority over the local edu17 cational agency. 

18 (iv) CAPABILITY TO IMPLEMENT

19 PROJECTS EXPEDITIOUSLY.—The capa20 bility of the local educational agency to im21 plement school renovation, repair, or con22 struction projects expeditiously. 

23 (v) FISCAL CAPACITY.—The fiscal ca24 pacity of a local educational agency to 

25 meet the needs of the local educational 


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1 agency for renovation, repair, and con2 struction of public school facilities without 

3 assistance under this section, including the 

4 ability of the local educational agency to 

5 raise funds through the use of local bond6 ing capacity and otherwise. 

7 (vi) LIKELIHOOD OF MAINTAINING

8 THE FACILITY.—The likelihood that the 

9 local educational agency will maintain, in 

10 good condition, any facility whose renova11 tion, repair, or construction is assisted 

12 under this section. 

13 (vii) CHARTER SCHOOL ACCESS TO

14 FUNDING.—In the case of a local edu15 cational agency that proposes to fund a 

16 renovation, repair, or construction project 

17 for a charter school, the extent to which 

18 the school has access to funding for the 

19 project through the financing methods 

20 available to other public schools or local 

21 educational agencies in the State. 

22 (D) POSSIBLE MATCHING REQUIRE23 MENT.— 

24 (i) IN GENERAL.—A State educational 

25 agency or State entity may require local 


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AMDT. NO. 98 

1 educational agencies to match competitive 

2 grant funds awarded under this section. 

3 (ii) MATCH AMOUNT.—The amount of 

4 a match described in clause (i) may be es5 tablished by using a sliding scale that 

6 takes into account the relative poverty of 

7 the population served by the local edu8 cational agency. 

9 (c) RULES APPLICABLE TO SCHOOL RENOVATION, 

10 REPAIR, AND CONSTRUCTION.—With respect to funds 

11 made available under this section that are used for school 

12 renovation, repair, and construction, the following rules 

13 shall apply: 

14 (1) PERMISSIBLE USES OF FUNDS.—School 

15 renovation, repair, and construction shall be limited 

16 to 1 or more of the following: 

17 (A) Upgrade, repair, construct, or replace 

18 existing or planned public school building sys19 tems and components to improve the quality of 

20 education and ensure the health and safety of 

21 students and staff, including— 

22 (i) repairing, replacing, or con23 structing early learning facilities (including 

24 renovation of existing facilities to serve 

25 children under 5 years of age); 


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AMDT. NO. 98 

1 (ii) repairing, replacing, or installing 

2 roofs, windows, doors, electrical wiring, 

3 plumbing systems, or sewage systems; 

4 (iii) repairing, replacing, or installing 

5 heating, ventilation, or air conditioning 

6 systems (including insulation); and 

7 (iv) bringing public schools into com8 pliance with fire and safety codes. 

9 (B) Modifications necessary to reduce the 

10 consumption of electricity, natural gas, oil, 

11 water, coal, or land. 

12 (C) Modifications necessary to make public 

13 school facilities accessible to comply with the 

14 Americans with Disabilities Act of 1990 (42 

15 U.S.C. 12101 et seq.) and section 504 of the 

16 Rehabilitation Act of 1973 (29 U.S.C. 794). 

17 (D) Improve environmental conditions of 

18 school sites, including asbestos abatement or re19 moval, and the reduction or elimination of 

20 human exposure to lead-based paint, mold, or 

21 mildew. 

22 (E) Upgrade or install educational tech23 nology infrastructure to ensure that students 

24 have access to up-to-date educational tech25 nology. 


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AMDT. NO. 98 

1 (F) Broaden or improve the use of school 

2 buildings and grounds to the community to im3 prove educational outcomes. 

4 (2) IMPERMISSIBLE USES OF FUNDS.—No 

5 funds received under this section may be used for— 

6 (A) payment of maintenance costs in con7 nection with any projects constructed in whole 

8 or part with Federal funds provided under this 

9 section; 

10 (B) purchase or upgrade of vehicles; 

11 (C) stadiums or other facilities primarily 

12 used for athletic contests or exhibitions or other 

13 events for which admission is charged to the 

14 general public; 

15 (D) improvement or construction of stand16 alone facilities whose purpose is not the edu17 cation of children, including central office ad18 ministration or operations or logistical support 

19 facilities; or 

20 (E) purchase of information technology 

21 hardware, including computers, monitors, or 

22 printers. 

23 (3) SUPPLEMENT, NOT SUPPLANT.— 

24 (A) IN GENERAL.—Except as provided in 

25 subparagraph (B) and excluding the uses deVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00186 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 scribed in paragraph (1)(C), a local educational 

2 agency shall use Federal funds received under 

3 this section only to supplement the amount of 

4 funds that would, in the absence of such Fed5 eral funds, be made available from non-Federal 

6 sources for school renovation, repair, and con7 struction. 

8 (B) EXCEPTION.—A local educational 

9 agency that is located in a State that is under 

10 a court order to finance school facilities shall 

11 not be subject to the requirement under sub12 paragraph (A). 

13 (d) QUALIFIED BIDDERS; COMPETITION.—Each local 

14 educational agency that receives funds under this section 

15 shall ensure that, if the local educational agency carries 

16 out renovation, repair, or construction through a contract, 

17 any such contract process ensures the maximum number 

18 of qualified bidders, including small, minority, and women19 owned businesses, through full and open competition. 

20 (e) REPORTING.— 

21 (1) LOCAL REPORTING.—Each local educational 

22 agency receiving funds made available under this 

23 section shall submit a report to the State edu24 cational agency, at such time as the State edu25 cational agency may require describing the use of 


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1 such funds for school renovation, repair, and con2 struction, including the following: 

3 (A) Type and description of work com4 pleted. 

5 (B) The source of any non-federal funds 

6 used to complete the project. 

7 (C) Person hours needed at various wage 

8 levels to complete the project. 

9 (D) Anticipated energy or natural resource 

10 savings. 

11 (2) STATE REPORTING.—Each State edu12 cational agency receiving funds made available under 

13 this section shall submit to the Secretary, not later 

14 than December 31, 2010, a report on the use of 

15 funds received under subsection (a)(2) and made 

16 available to local educational agencies for school ren17 ovation, repair, and construction. 

18 (f) ADMINISTRATIVE COSTS.—Each local educational 

19 agency that receives funds under this section may reserve 

20 not more than 1 percent of the funds or $750,000, which21 ever amount is less, for the purpose of— 

22 (1) administering school renovation, repair, and 

23 construction projects; and 

24 (2) reporting under subsection (e). 


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AMDT. NO. 98 

1 (g) REALLOCATION.—If a State educational agency 

2 does not apply for an allocation of funds under subsection 

3 (a)(2), or does not use its entire allocation, then the Sec4 retary may reallocate the amount of the State educational 

5 agency’s allocation (or the remainder thereof, as the case 

6 may be) to the remaining State educational agencies in 

7 accordance with subsection (a)(2). 

8 (h) APPLICATION OF GEPA.—The grant program 

9 under this section is an applicable program (as that term 

10 is defined in section 400 of the General Education Provi11 sions Act (20 U.S.C. 1221)) subject to section 439 of such 

12 Act (20 U.S.C. 1232b). 

13 (i) DEFINITIONS.—In this section: 

14 (1) IN GENERAL.—The terms ‘‘local educational 

15 agency’’, ‘‘Secretary’’, and ‘‘State educational agen16 cy’’ have the meanings given the terms in section 

17 9101 of the Elementary and Secondary Education 

18 Act of 1965 (20 U.S.C. 7801). 

19 (2) CHARTER SCHOOL.—The term ‘‘charter 

20 school’’ has the meaning given the term in section 

21 5210 of the Elementary and Secondary Education 

22 Act of 1965 (20 U.S.C. 7221i). 

23 (3) CHPS CRITERIA.—The term ‘‘CHPS Cri24 teria’’ means the green building rating program deVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00189 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 veloped by the Collaborative for High Performance 

2 Schools. 

3 (4) ENERGY STAR.—The term ‘‘Energy Star’’ 

4 means the Energy Star program of the Department 

5 of Energy and the Environmental Protection Agen6 cy. 

7 (5) GREEN GLOBES.—The term ‘‘Green 

8 Globes’’ means the Green Building Initiative envi9 ronmental design and rating system. 

10 (6) HIGH-NEED LOCAL EDUCATIONAL AGEN11 CY.—The term ‘‘high-need local educational agency’’ 

12 has the meaning given the term in section 

13 2102(3)(A) of the Elementary and Secondary Edu14 cation Act of 1965 (20 U.S.C. 6602(3)(A)). 

15 (7) LEED GREEN BUILDING RATING SYSTEM.— 

16 The term ‘‘LEED Green Building Rating System’’ 

17 means the United States Green Building Council 

18 Leadership in Energy and Environmental Design 

19 green building rating standard. 

20 (8) OUTLYING AREA.—The term ‘‘outlying 

21 area’’ has the meaning given the term in section 

22 1121(c) of the Elementary and Secondary Education 

23 Act of 1965 (20 U.S.C. 6331(c)). 

24 (9) POOR CHILDREN.—The term ‘‘poor chil25 dren’’ refers to children 5 to 17 years of age, incluVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00190 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 sive, who are from families with incomes below the 

2 poverty line (as defined by the Office of Manage3 ment and Budget and revised annually in accordance 

4 with section 673(2) of the Community Services 

5 Block Grant Act (42 U.S.C. 9902(2)) applicable to 

6 a family of the size involved for the most recent fis7 cal year for which data satisfactory to the Secretary 

8 are available. 

9 (10) RURAL LOCAL EDUCATIONAL AGENCY.— 

10 The term ‘‘rural local educational agency’’ means a 

11 local educational agency that the State determines is 

12 located in a rural area using objective data and a 

13 commonly employed definition of the term ‘‘rural’’. 

14 (11) STATE.—The term ‘‘State’’ means each of 

15 the several States of the United States, the District 

16 of Columbia, and the Commonwealth of Puerto Rico. 

17 (TRANSFER OF FUNDS)

18 SEC. 805. (a) Not more than 1 percent of the funds 

19 made available to the Department of Labor in this title 

20 may be transferred by the Secretary of Labor to ‘‘Employ21 ment and Training Administration—Program Administra22 tion’’, ‘‘Employment Standards Administration—Salaries 

23 and Expenses’’, ‘‘Occupational Safety and Health Admin24 istration—Salaries and Expenses’’ and ‘‘Departmental 

25 Management—Salaries and Expenses’’ for expenses nec26 essary to administer and coordinate funds made available 


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1 to the Department of Labor in this title; oversee and 

2 evaluate the use of such funds; and enforce applicable laws 

3 and regulations governing worker rights and protections 

4 associated with the funds made available in this Act. 

5 (b) Not later than 10 days prior to obligating any 

6 funds proposed to be transferred under subsection (a), the 

7 Secretary shall provide to the Committees on Appropria8 tions of the House of Representatives and the Senate an 

9 operating plan describing the planned uses of each amount 

10 proposed to be transferred. 

11 (c) Funds transferred under this section may be 

12 available for obligation through September 30, 2010. 

13 SEC. 806. ELIGIBLE EMPLOYEES IN THE REC14 REATIONAL MARINE INDUSTRY. Section 2(3)(F) of the 

15 Longshore and Harbor Workers’ Compensation Act (33 

16 U.S.C. 902(3)(F)) is amended— 

17 (1) by striking ‘‘, repair or dismantle’’; and 

18 (2) by striking the semicolon and inserting ‘‘, or 

19 individuals employed to repair any recreational ves20 sel, or to dismantle any part of a recreational vessel 

21 in connection with the repair of such vessel;’’. 


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AMDT. NO. 98 

1 TITLE IX—LEGISLATIVE BRANCH 

2 GOVERNMENT ACCOUNTABLIITY OFFICE 

3 SALARIES AND EXPENSES

4 For an additional amount for ‘‘Salaries and Ex5 penses’’ of the Government Accountability Office, 

6 $20,000,000, to remain available until September 30, 

7 2010. 

8 GENERAL PROVISIONS—THIS TITLE 

9 SEC. 901. GOVERNMENT ACCOUNTABILITY OFFICE

10 REVIEWS AND REPORTS. (a) REVIEWS AND REPORTS.— 

11 (1) IN GENERAL.—The Comptroller General 

12 shall conduct bimonthly reviews and prepare reports 

13 on such reviews on the use by selected State and lo14 calities of funds made available in this Act. Such re15 ports, along with any audits conducted by the Comp16 troller General of such funds, shall be posted on the 

17 Internet and linked to the website established under 

18 this Act by the Recovery Accountability and Trans19 parency Board. 

20 (2) REDACTIONS.—Any portion of a report or 

21 audit under this subsection may be redacted when 

22 made publicly available, if that portion would dis23 close information that is not subject to disclosure 

24 under section 552 of title 5, United States Code 


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1 (commonly known as the Freedom of Information 

2 Act). 

3 (b) EXAMINATION OF RECORDS.—The Comptroller 

4 General may examine any records related to obligations 

5 of funds made available in this Act. 

6 SEC. 902. ACCESS OF GOVERNMENT ACCOUNT7 ABILITY OFFICE. Each contract awarded using funds 

8 made available in this Act shall provide that the Comp9 troller General and his representatives are authorized— 

10 (1) to examine any records of the contractor or 

11 any of its subcontractors, or any State or local agen12 cy administering such contract, that directly pertain 

13 to, and involve transactions relating to, the contract 

14 or subcontract; and 

15 (2) to interview any current employee regarding 

16 such transactions. 

17 TITLE X—MILITARY CONSTRUCTION AND 

18 VETERANS AFFAIRS, AND RELATED AGENCIES 

19 DEPARTMENT OF DEFENSE 

20 MILITARY CONSTRUCTION, ARMY

21 For an additional amount for ‘‘Military Construction, 

22 Army’’, $637,875,000, to remain available until Sep23 tember 30, 2013, of which $84,100,000 shall be for child 

24 development centers; $481,000,000 shall be for warrior 

25 transition complexes; and $42,400,000 shall be for health 


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AMDT. NO. 98 

1 and dental clinics (including acquisition, construction, in2 stallation, and equipment): Provided, That notwith3 standing any other provision of law, such funds may be 

4 obligated and expended to carry out planning and design 

5 and military construction projects in the United States not 

6 otherwise authorized by law: Provided further, That of the 

7 funds provided under this heading, not to exceed 

8 $30,375,000 shall be available for study, planning, design, 

9 and architect and engineer services: Provided further, That 

10 within 30 days of enactment of this Act the Secretary of 

11 the Army shall submit to the Committees on Appropria12 tions of both Houses of Congress an expenditure plan for 

13 funds provided under this heading prior to obligation. 

14 MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

15 For an additional amount for ‘‘Military Construction, 

16 Navy and Marine Corps’’, $990,092,000, to remain avail17 able until September 30, 2013, of which $172,820,000 

18 shall be for child development centers; $174,304,000 shall 

19 be for barracks; $125,000,000 shall be for health clinic 

20 replacement, and $494,362,000 shall be for energy con21 servation and alternative energy projects (including acqui22 sition, construction, installation, and equipment): Pro23 vided, That notwithstanding any other provision of law, 

24 such funds may be obligated and expended to carry out 

25 planning and design and military construction projects in 


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1 the United States not otherwise authorized by law: Pro2 vided further, That of the funds provided under this head3 ing, not to exceed $23,606,000 shall be available for study, 

4 planning, design, and architect and engineer services: Pro5 vided further, That within 30 days of enactment of this 

6 Act the Secretary of the Navy shall submit to the Commit7 tees on Appropriations of both Houses of Congress an ex8 penditure plan for funds provided under this heading prior 

9 to obligation. 

10 MILITARY CONSTRUCTION, AIR FORCE

11 For an additional amount for ‘‘Military Construction, 

12 Air Force’’, $871,332,000, to remain available until Sep13 tember 30, 2013, of which $80,100,000 shall be for child 

14 development centers; $612,246,000 shall be for dor15 mitories; and $138,100,000 shall be for health clinics (in16 cluding acquisition, construction, installation, and equip17 ment): Provided, That notwithstanding any other provi18 sion of law, such funds may be obligated and expended 

19 to carry out planning and design and military construction 

20 projects in the United States not otherwise authorized by 

21 law: Provided further, That of the funds provided under 

22 this heading, not to exceed $40,886,000 shall be available 

23 for study, planning, design, and architect and engineer 

24 services: Provided further, That within 30 days of enact25 ment of this Act the Secretary of the Air Force shall subVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00196 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 mit to the Committees on Appropriations of both Houses 

2 of Congress an expenditure plan for funds provided under 

3 this heading prior to obligation. 

4 MILITARY CONSTRUCTION, DEFENSE-WIDE

5 For an additional amount for ‘‘Military Construction, 

6 Defense-Wide’’, $118,560,000 for the Energy Conserva7 tion Investment Program, to remain available until Sep8 tember 30, 2010: Provided, That notwithstanding any 

9 other provision of law, such funds may be obligated and 

10 expended to carry out planning and design and military 

11 construction projects in the United States not otherwise 

12 authorized by law: Provided further, That within 30 days 

13 of enactment of this Act the Secretary of Defense shall 

14 submit to the Committees on Appropriations of both 

15 Houses of Congress an expenditure plan for funds pro16 vided under this heading prior to obligation. 

17 MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

18 For an additional amount for ‘‘Military Construction, 

19 Army National Guard’’, $150,000,000 for readiness cen20 ters (including construction, acquisition, expansion, reha21 bilitation, and conversion), to remain available until Sep22 tember 30, 2013: Provided, That notwithstanding any 

23 other provision of law, such funds may be obligated and 

24 expended to carry out planning and design and military 

25 construction projects in the United States not otherwise 


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1 authorized by law: Provided further, That within 30 days 

2 of enactment of this Act the Director of the Army Na3 tional Guard shall submit to the Committees on Appro4 priations of both Houses of Congress an expenditure plan 

5 for funds provided under this heading prior to obligation. 

6 MILITARY CONSTRUCTION, AIR NATIONAL GUARD

7 For an additional amount for ‘‘Military Construction, 

8 Air National Guard’’, $110,000,000, to remain available 

9 until September 30, 2013: Provided, That notwithstanding 

10 any other provision of law, such funds may be obligated 

11 and expended to carry out planning and design and mili12 tary construction projects in the United States not other13 wise authorized by law: Provided further, That within 30 

14 days of enactment of this Act the Director of the Air Na15 tional Guard shall submit to the Committees on Appro16 priations of both Houses of Congress an expenditure plan 

17 for funds provided under this heading prior to obligation. 

18 FAMILY HOUSING CONSTRUCTION, ARMY

19 For an additional amount for ‘‘Family Housing Con20 struction, Army’’, $34,570,000, to remain available until 

21 September 30, 2013: Provided, That notwithstanding any 

22 other provision of law, such funds may be obligated and 

23 expended to carry out planning and design and military 

24 construction projects in the United States not otherwise 

25 authorized by law: Provided further, That within 30 days 


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1 of enactment of this Act the Secretary of the Army shall 

2 submit to the Committees on Appropriations of both 

3 Houses of Congress an expenditure plan for funds pro4 vided under this heading prior to obligation. 

5 FAMILY HOUSING OPERATION AND MAINTENANCE, 

6 ARMY

7 For an additional amount for ‘‘Family Housing Oper8 ation and Maintenance, Army’’, $3,932,000: Provided, 

9 That notwithstanding any other provision of law, such 

10 funds may be obligated and expended for operation and 

11 maintenance and minor construction projects in the 

12 United States not otherwise authorized by law. 

13 FAMILY HOUSING CONSTRUCTION, AIR FORCE

14 For an additional amount for ‘‘Family Housing Con15 struction, Air Force’’, $80,100,000, to remain available 

16 until September 30, 2013: Provided, That notwithstanding 

17 any other provision of law, such funds may be obligated 

18 and expended to carry out planning and design and mili19 tary construction projects in the United States not other20 wise authorized by law: Provided further, That within 30 

21 days of enactment of this Act the Secretary of the Air 

22 Force shall submit to the Committees on Appropriations 

23 of both Houses of Congress an expenditure plan for funds 

24 provided under this heading prior to obligation. 


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AMDT. NO. 98 

1 FAMILY HOUSING OPERATION AND MAINTENANCE, AIR

2 FORCE

3 For an additional amount for ‘‘Family Housing Oper4 ation and Maintenance, Air Force’’, $16,461,000: Pro5 vided, That notwithstanding any other provision of law, 

6 such funds may be obligated and expended for operation 

7 and maintenance and minor construction projects in the 

8 United States not otherwise authorized by law. 

9 HOMEOWNERS ASSISTANCE FUND

10 For an additional amount for ‘‘Homeowners Assist11 ance Fund’’, established by section 1013 of the Dem12 onstration Cities and Metropolitan Development Act of 

13 1966, as amended (42 U.S.C. 3374), $410,973,000, to re14 main available until expended. 

15 ADMINISTRATIVE PROVISION

16 SEC. 1001. (a) TEMPORARY EXPANSION OF HOME17 OWNERS ASSISTANCE PLAN TO RESPOND TO MORTGAGE

18 FORECLOSURE AND CREDIT CRISIS.—Section 1013 of the 

19 Demonstration Cities and Metropolitan Development Act 

20 of 1966 (42 U.S.C. 3374) is amended— 

21 (1) in subsection (a)— 

22 (A) by redesignating paragraphs (1), (2), 

23 and (3) as clauses (i), (ii), and (iii), respec24 tively, and indenting such subparagraphs, as so 

25 redesignated, 6 ems from the left margin; 


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AMDT. NO. 98 

1 (B) by striking ‘‘Notwithstanding any 

2 other provision of law’’ and inserting the fol3 lowing: 

4 ‘‘(1) ACQUISITION OF PROPERTY AT OR NEAR

5 MILITARY INSTALLATIONS THAT HAVE BEEN OR6 DERED TO BE CLOSED.—Notwithstanding any other 

7 provision of law’’; 

8 (C) by striking ‘‘if he determines’’ and in9 serting ‘‘if— 

10 ‘‘(A) the Secretary determines—’’; 

11 (D) in clause (iii), as redesignated by sub12 paragraph (A), by striking the period at the 

13 end and inserting ‘‘; or’’; and 

14 (E) by adding at the end the following: 

15 ‘‘(B) the Secretary determines— 

16 ‘‘(i) that the conditions in clauses (i) 

17 and (ii) of subparagraph (A) have been 

18 met; 

19 ‘‘(ii) that the closing or realignment 

20 of the base or installation resulted from a 

21 realignment or closure carried out under 

22 the 2005 round of defense base closure 

23 and realignment under the Defense Base 

24 Closure and Realignment Act of 1990 


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AMDT. NO. 98 

1 (part XXIX of Public Law 101–510; 10 

2 U.S.C. 2687 note); 

3 ‘‘(iii) that the property was purchased 

4 by the owner before July 1, 2006; 

5 ‘‘(iv) that the property was sold by 

6 the owner between July 1, 2006, and Sep7 tember 30, 2012, or an earlier end date 

8 designated by the Secretary; 

9 ‘‘(v) that the property is the primary 

10 residence of the owner; and 

11 ‘‘(vi) that the owner has not pre12 viously received benefit payments author13 ized under this subsection. 

14 ‘‘(2) HOMEOWNER ASSISTANCE FOR WOUNDED

15 MEMBERS OF THE ARMED FORCES, DEPARTMENT OF

16 DEFENSE AND UNITED STATES COAST GUARD CIVIL17 IAN EMPLOYEES, AND THEIR SPOUSES.—Notwith18 standing any other provision of law, the Secretary of 

19 Defense is authorized to acquire title to, hold, man20 age, and dispose of, or, in lieu thereof, to reimburse 

21 for certain losses upon private sale of, or foreclosure 

22 against, any property improved with a one- or two23 family dwelling which was at the time of the relevant 

24 wound, injury, or illness, the primary residence of— 


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1 ‘‘(A) any member of the Armed Forces in 

2 medical transition who— 

3 ‘‘(i) incurred a wound, injury, or ill4 ness in the line of duty during a deploy5 ment in support of the Armed Forces; 

6 ‘‘(ii) is disabled to a degree of 30 per7 cent or more as a result of such wound, in8 jury, or illness, as determined by the Sec9 retary of Defense or the Secretary of Vet10 erans Affairs; and 

11 ‘‘(iii) is reassigned in furtherance of 

12 medical treatment or rehabilitation, or due 

13 to medical retirement in connection with 

14 such disability; 

15 ‘‘(B) any civilian employee of the Depart16 ment of Defense or the United States Coast 

17 Guard who— 

18 ‘‘(i) was wounded, injured, or became 

19 ill in the line of duty during a forward de20 ployment in support of the Armed Forces; 

21 and 

22 ‘‘(ii) is reassigned in furtherance of 

23 medical treatment, rehabilitation, or due to 

24 medical retirement resulting from the sus25 tained disability; or 


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AMDT. NO. 98 

1 ‘‘(C) the spouse of a member of the Armed 

2 Forces or a civilian employee of the Department 

3 of Defense or the United States Coast Guard 

4 if— 

5 ‘‘(i) the member or employee was 

6 killed in the line of duty during a deploy7 ment in support of the Armed Forces or 

8 died from a wound, injury, or illness in9 curred in the line of duty during such a 

10 deployment; and 

11 ‘‘(ii) the spouse relocates from such 

12 residence within 2 years after the death of 

13 such member or employee. 

14 ‘‘(3) TEMPORARY HOMEOWNER ASSISTANCE

15 FOR MEMBERS OF THE ARMED FORCES PERMA16 NENTLY REASSIGNED DURING SPECIFIED MORTGAGE

17 CRISIS.—Notwithstanding any other provision of 

18 law, the Secretary of Defense is authorized to ac19 quire title to, hold, manage, and dispose of, or, in 

20 lieu thereof, to reimburse for certain losses upon pri21 vate sale of, or foreclosure against, any property im22 proved with a one- or two-family dwelling situated at 

23 or near a military base or installation, if the Sec24 retary determines— 


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1 ‘‘(A) that the owner is a member of the 

2 Armed Forces serving on permanent assign3 ment; 

4 ‘‘(B) that the owner is permanently reas5 signed by order of the United States Govern6 ment to a duty station or home port outside a 

7 50-mile radius of the base or installation; 

8 ‘‘(C) that the reassignment was ordered 

9 between February 1, 2006, and September 30, 

10 2012, or an earlier end date designated by the 

11 Secretary; 

12 ‘‘(D) that the property was purchased by 

13 the owner before July 1, 2006; 

14 ‘‘(E) that the property was sold by the 

15 owner between July 1, 2006, and September 

16 30, 2012, or an earlier end date designated by 

17 the Secretary; 

18 ‘‘(F) that the property is the primary resi19 dence of the owner; and 

20 ‘‘(G) that the owner has not previously re21 ceived benefit payments authorized under this 

22 subsection.’’; 

23 (2) in subsection (b), by striking ‘‘this section’’ 

24 each place it appears and inserting ‘‘subsection 

25 (a)(1)’’; 


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1 (3) in subsection (c)— 

2 (A) by striking ‘‘Such persons’’ and insert3 ing the following: 

4 ‘‘(1) HOMEOWNER ASSISTANCE RELATED TO

5 CLOSED MILITARY INSTALLATIONS.— 

6 ‘‘(A) IN GENERAL.—Such persons’’; 

7 (B) by striking ‘‘set forth above shall elect 

8 either (1) to receive’’ and inserting the fol9 lowing: ‘‘set forth in subsection (a)(1) shall 

10 elect either— 

11 ‘‘(i) to receive’’; 

12 (C) by striking ‘‘difference between (A) 95 

13 per centum’’ and all that follows through ‘‘(B) 

14 the fair market value’’ and inserting the fol15 lowing: ‘‘difference between— 

16 ‘‘(I) 95 per centum of the fair 

17 market value of their property (as 

18 such value is determined by the Sec19 retary of Defense) prior to public an20 nouncement of intention to close all or 

21 part of the military base or installa22 tion; and 

23 ‘‘(II) the fair market value’’; 


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AMDT. NO. 98 

1 (D) by striking ‘‘time of the sale, or (2) to 

2 receive’’ and inserting the following: ‘‘time of 

3 the sale; or 

4 ‘‘(ii) to receive’’; 

5 (E) by striking ‘‘outstanding mortgages. 

6 The Secretary may also pay a person who elects 

7 to receive a cash payment under clause (1) of 

8 the preceding sentence an amount’’ and insert9 ing ‘‘outstanding mortgages. 

10 ‘‘(B) REIMBURSEMENT OF EXPENSES.— 

11 The Secretary may also pay a person who elects 

12 to receive a cash payment under subparagraph 

13 (A) an amount’’; and 

14 (F) by striking ‘‘best interest of the Fed15 eral Government. Cash payment’’ and inserting 

16 the following: ‘‘best interest of the United 

17 States. 

18 ‘‘(2) HOMEOWNER ASSISTANCE FOR WOUNDED

19 INDIVIDUALS AND THEIR SPOUSES.— 

20 ‘‘(A) IN GENERAL.—Persons eligible under 

21 the criteria set forth in subsection (a)(2) may 

22 elect either— 

23 ‘‘(i) to receive a cash payment as com24 pensation for losses which may be or have 

25 been sustained in a private sale, in an 


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AMDT. NO. 98 

1 amount not to exceed the difference be2 tween— 

3 ‘‘(I) 95 per centum of prior fair 

4 market value of their property (as 

5 such value is determined by the Sec6 retary of Defense); and 

7 ‘‘(II) the fair market value of 

8 such property (as such value is so de9 termined) at the time of the wound, 

10 injury, or illness qualifying the indi11 vidual for benefits under subsection 

12 (a)(2); or 

13 ‘‘(ii) to receive, as purchase price for 

14 their property an amount not to exceed 90 

15 per centum of prior fair market value as 

16 such value is determined by the Secretary 

17 of Defense, or the amount of the out18 standing mortgages. 

19 ‘‘(B) DETERMINATION OF BENEFITS.— 

20 The Secretary may also pay a person who elects 

21 to receive a cash payment under subparagraph 

22 (A) an amount that the Secretary determines 

23 appropriate to reimburse the person for the 

24 costs incurred by the person in the sale of the 

25 property if the Secretary determines that such 


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1 payment will benefit the person and is in the 

2 best interest of the United States. 

3 ‘‘(3) HOMEOWNER ASSISTANCE FOR PERMA4 NENTLY REASSIGNED INDIVIDUALS.— 

5 ‘‘(A) IN GENERAL.—Persons eligible under 

6 the criteria set forth in subsection (a)(3) may 

7 elect either— 

8 ‘‘(i) to receive a cash payment as com9 pensation for losses which may be or have 

10 been sustained in a private sale, in an 

11 amount not to exceed the difference be12 tween— 

13 ‘‘(I) 95 per centum of prior fair 

14 market value of their property (as 

15 such value is determined by the Sec16 retary of Defense); and 

17 ‘‘(II) the fair market value of 

18 such property (as such value is so de19 termined) at the time the person re20 ceived change of permanent station 

21 orders; or 

22 ‘‘(ii) to receive, as purchase price for 

23 their property an amount not to exceed 90 

24 per centum of prior fair market value as 

25 such value is determined by the Secretary 


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1 of Defense, or the amount of the out2 standing mortgages. 

3 ‘‘(B) DETERMINATION OF BENEFITS.— 

4 The Secretary may also pay a person who elects 

5 to receive a cash payment under subparagraph 

6 (A) an amount that the Secretary determines 

7 appropriate to reimburse the person for the 

8 costs incurred by the person in the sale of the 

9 property if the Secretary determines that such 

10 payment will benefit the person and is in the 

11 best interest of the United States. 

12 ‘‘(4) COMPENSATION AND LIMITATIONS RE13 LATED TO FORECLOSURES AND ENCUMBRANCES.— 

14 Cash payment’’; 

15 (4) by striking subsection (g); 

16 (5) in subsection (l), by striking ‘‘(a)(2)’’ and 

17 inserting ‘‘(a)(1)(A)(ii)’’; 

18 (6) in subsection (m), by striking ‘‘this section’’ 

19 and inserting ‘‘subsection (a)(1)’’; 

20 (7) in subsection (n)— 

21 (A) in paragraph (1), by striking ‘‘this sec22 tion’’ and inserting ‘‘subsection (a)(1)’’; and 

23 (B) in paragraph (2), by striking ‘‘this sec24 tion’’ and inserting ‘‘subsection (a)(1)’’; 

25 (8) in subsection (o)— 


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1 (A) in paragraph (1), by striking ‘‘this sec2 tion’’ and inserting ‘‘subsection (a)(1)’’; 

3 (B) in paragraph (2), by striking ‘‘this sec4 tion’’ and inserting ‘‘subsection (a)(1)’’; and 

5 (C) by striking paragraph (4); and 

6 (9) by adding at the end the following new sub7 section: 

8 ‘‘(p) DEFINITIONS.—In this section: 

9 ‘‘(1) the term ‘Armed Forces’ has the meaning 

10 given the term ‘armed forces’ in section 101(a) of 

11 title 10, United States Code; 

12 ‘‘(2) the term ‘civilian employee’ has the mean13 ing given the term ‘employee’ in section 2105(a) of 

14 title 5, United States Code; 

15 ‘‘(3) the term ‘medical transition’, in the case 

16 of a member of the Armed Forces, means a member 

17 who— 

18 ‘‘(A) is in Medical Holdover status; 

19 ‘‘(B) is in Active Duty Medical Extension 

20 status; 

21 ‘‘(C) is in Medical Hold status; 

22 ‘‘(D) is in a status pending an evaluation 

23 by a medical evaluation board; 

24 ‘‘(E) has a complex medical need requiring 

25 six or more months of medical treatment; or 


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1 ‘‘(F) is assigned or attached to an Army 

2 Warrior Transition Unit, an Air Force Patient 

3 Squadron, a Navy Patient Multidisciplinary 

4 Care Team, or a Marine Patient Affairs Team/ 

5 Wounded Warrior Regiment; and 

6 ‘‘(4) the term ‘nonappropriated fund instrumen7 tality employee’ means a civilian employee who— 

8 ‘‘(A) is a citizen of the United States; and 

9 ‘‘(B) is paid from nonappropriated funds 

10 of Army and Air Force Exchange Service, Navy 

11 Resale and Services Support Office, Marine 

12 Corps exchanges, or any other instrumentality 

13 of the United States under the jurisdiction of 

14 the Armed Forces which is conducted for the 

15 comfort, pleasure, contentment, or physical or 

16 mental improvement of members of the Armed 

17 Forces.’’. 

18 (b) CLERICAL AMENDMENT.—Such section is further 

19 amended in the section heading by inserting ‘‘and certain 

20 property owned by members of the armed forces, depart21 ment of defense and united states coast guard civilian em22 ployees, and surviving spouses’’ after ‘‘ordered to be 

23 closed’’. 

24 (c) AUTHORITY TO USE APPROPRIATED FUNDS.— 

25 Notwithstanding subsection (i) of such section, amounts 


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1 appropriated or otherwise made available by this title 

2 under the heading ‘‘Homeowners Assistance Fund’’ may 

3 be used for the Homeowners Assistance Fund established 

4 under such section. 

5 DEPARTMENT OF VETERANS AFFAIRS 

6 VETERANS HEALTH ADMINISTRATION

7 MEDICAL SUPPORT AND COMPLIANCE

8 For an additional amount for ‘‘Medical Support and 

9 Compliance’’, $5,000,000, to remain available until Sep10 tember 30, 2010, to support contract administration and 

11 energy initiative execution at the Veterans Health Admin12 istration. 

13 MEDICAL FACILITIES

14 For an additional amount for ‘‘Medical Facilities’’, 

15 $1,370,459,000, to remain available until September 30, 

16 2010, of which $1,047,313,000 shall be for facility condi17 tion assessment deficiencies and non-recurring mainte18 nance at existing medical facilities; and $323,146,000 

19 shall be for energy efficiency initiatives. 

20 NATIONAL CEMETERY ADMINISTRATION

21 For an additional amount for ‘‘National Cemetery 

22 Administration’’, $64,961,000, to remain available until 

23 September 30, 2010, of which $59,476,000 shall be for 

24 capital infrastructure and memorial and monument re25 pairs; and $5,485,000 shall be for energy efficiency initia26 tives. 


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1 DEPARTMENTAL ADMINISTRATION

2 GENERAL OPERATING EXPENSES

3 For an additional amount for ‘‘General Operating 

4 Expenses’’, $1,125,000, to remain available until Sep5 tember 30, 2010, for additional Full Time Equivalent sal6 ary and expenses for major construction project adminis7 tration and execution and energy initiative execution. 

8 INFORMATION TECHNOLOGY SYSTEMS

9 For an additional amount for ‘‘Information Tech10 nology Systems’’, $195,000,000, to remain available until 

11 September 30, 2010, of which $145,000,000 shall be for 

12 the Veterans Benefits Administration’s development of 

13 paperless claims processing; and $50,000,000 shall be for 

14 the development of systems required to implement chapter 

15 33 of title 38, United States Code. 

16 OFFICE OF INSPECTOR GENERAL

17 For an additional amount for ‘‘Office of Inspector 

18 General’’, $4,400,000, to remain available until September 

19 30, 2010, for oversight and audit of programs, grants and 

20 projects funded under this title. 

21 CONSTRUCTION, MAJOR PROJECTS

22 For an additional amount for ‘‘Construction, Major 

23 Projects’’, $1,105,333,000, to remain available until Sep24 tember 30, 2013, which shall be for acceleration and con25 struction of ongoing and planned construction, including 

26 physical security construction, of major medical facilities 


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1 and National Cemeteries consistent with the Department 

2 of Veterans Affairs’ Five Year Capital Plan: Provided, 

3 That notwithstanding any other provision of law, such 

4 funds may be obligated and expended to carry out plan5 ning and design and major medical facility construction 

6 not otherwise authorized by law: Provided further, That 

7 within 30 days of enactment of this Act the Secretary of 

8 Veterans Affairs shall submit to the Committees on Ap9 propriations of both Houses of Congress an expenditure 

10 plan for funds provided under this heading prior to obliga11 tion. 

12 CONSTRUCTION, MINOR PROJECTS

13 For an additional amount for ‘‘Construction, Minor 

14 Projects’’, $939,836,000, to remain available until Sep15 tember 30, 2010, of which $860,742,000 shall be for Vet16 erans Health Administration minor construction; 

17 $20,300,000 shall be for Veterans Benefits Administra18 tion minor construction, including $300,000 for energy ef19 ficiency initiatives; and $29,012,000 shall be for National 

20 Cemetery Administration minor construction. 

21 GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE

22 FACILITIES

23 For an additional amount for ‘‘Grants for Construc24 tion of State Extended Care Facilities’’, $257,986,000, to 

25 remain available until September 30, 2010, for grants to 

26 assist States to acquire or construct State nursing home 


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1 and domiciliary facilities and to remodel, modify, or alter 

2 existing hospital, nursing home, and domiciliary facilities 

3 in State homes, for furnishing care to veterans as author4 ized by sections 8131 through 8137 of title 38, United 

5 States Code. 

6 ADMINISTRATIVE PROVISION

7 SEC. 1002. PAYMENTS TO ELIGIBLE PERSONS WHO

8 SERVED IN THE UNITED STATES ARMED FORCES IN THE

9 FAR EAST DURING WORLD WAR II. (a) FINDINGS.—Con10 gress makes the following findings: 

11 (1) The Philippine islands became a United 

12 States possession in 1898 when they were ceded 

13 from Spain following the Spanish-American War. 

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

15 variety of units, some of which came under the di16 rect control of the United States Armed Forces. 

17 (3) The regular Philippine Scouts, the new 

18 Philippine Scouts, the Guerilla Services, and more 

19 than 100,000 members of the Philippine Common20 wealth Army were called into the service of the 

21 United States Armed Forces of the Far East on 

22 July 26, 1941, by an executive order of President 

23 Franklin D. Roosevelt. 

24 (4) Even after hostilities had ceased, wartime 

25 service of the new Philippine Scouts continued as a 


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1 matter of law until the end of 1946, and the force 

2 gradually disbanded and was disestablished in 1950. 

3 (5) Filipino veterans who were granted benefits 

4 prior to the enactment of the so-called Rescissions 

5 Acts of 1946 (Public Laws 79–301 and 79–391) 

6 currently receive full benefits under laws adminis7 tered by the Secretary of Veterans Affairs, but 

8 under section 107 of title 38, United States Code, 

9 the service of certain other Filipino veterans is 

10 deemed not to be active service for purposes of such 

11 laws. 

12 (6) These other Filipino veterans only receive 

13 certain benefits under title 38, United States Code, 

14 and, depending on where they legally reside, are paid 

15 such benefit amounts at reduced rates. 

16 (7) The benefits such veterans receive include 

17 service-connected compensation benefits paid under 

18 chapter 11 of title 38, United States Code, depend19 ency indemnity compensation survivor benefits paid 

20 under chapter 13 of title 38, United States Code, 

21 and burial benefits under chapters 23 and 24 of title 

22 38, United States Code, and such benefits are paid 

23 to beneficiaries at the rate of $0.50 per dollar au24 thorized, unless they lawfully reside in the United 

25 States. 


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1 (8) Dependents’ educational assistance under 

2 chapter 35 of title 38, United States Code, is also 

3 payable for the dependents of such veterans at the 

4 rate of $0.50 per dollar authorized, regardless of the 

5 veterans’ residency. 

6 (b) COMPENSATION FUND.— 

7 (1) IN GENERAL.—There is in the general fund 

8 of the Treasury a fund to be known as the ‘‘Filipino 

9 Veterans Equity Compensation Fund’’ (in this sec10 tion referred to as the ‘‘compensation fund’’). 

11 (2) AVAILABILITY OF FUNDS.—Subject to the 

12 availability of appropriations for such purpose, 

13 amounts in the fund shall be available to the Sec14 retary of Veterans Affairs without fiscal year limita15 tion to make payments to eligible persons in accord16 ance with this section. 

17 (c) PAYMENTS.— 

18 (1) IN GENERAL.—The Secretary may make a 

19 payment from the compensation fund to an eligible 

20 person who, during the one-year period beginning on 

21 the date of the enactment of this Act, submits to the 

22 Secretary a claim for benefits under this section. 

23 The application for the claim shall contain such in24 formation and evidence as the Secretary may re25 quire. 


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1 (2) PAYMENT TO SURVIVING SPOUSE.—If an el2 igible person who has filed a claim for benefits under 

3 this section dies before payment is made under this 

4 section, the payment under this section shall be 

5 made instead to the surviving spouse, if any, of the 

6 eligible person. 

7 (d) ELIGIBLE PERSONS.—An eligible person is any 

8 person who— 

9 (1) served— 

10 (A) before July 1, 1946, in the organized 

11 military forces of the Government of the Com12 monwealth of the Philippines, while such forces 

13 were in the service of the Armed Forces of the 

14 United States pursuant to the military order of 

15 the President dated July 26, 1941, including 

16 among such military forces organized guerrilla 

17 forces under commanders appointed, des18 ignated, or subsequently recognized by the 

19 Commander in Chief, Southwest Pacific Area, 

20 or other competent authority in the Army of the 

21 United States; or 

22 (B) in the Philippine Scouts under section 

23 14 of the Armed Forces Voluntary Recruitment 

24 Act of 1945 (59 Stat. 538); and 


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1 (2) was discharged or released from service de2 scribed in paragraph (1) under conditions other than 

3 dishonorable. 

4 (e) PAYMENT AMOUNTS.—Each payment under this 

5 section shall be— 

6 (1) in the case of an eligible person who is not 

7 a citizen of the United States, in the amount of 

8 $9,000; and 

9 (2) in the case of an eligible person who is a 

10 citizen of the United States, in the amount of 

11 $15,000. 

12 (f) LIMITATION.—The Secretary may not make more 

13 than one payment under this section for each eligible per14 son described in subsection (d). 

15 (g) CLARIFICATION OF TREATMENT OF PAYMENTS

16 UNDER CERTAIN LAWS.—Amounts paid to a person 

17 under this section— 

18 (1) shall be treated for purposes of the internal 

19 revenue laws of the United States as damages for 

20 human suffering; and 

21 (2) shall not be included in income or resources 

22 for purposes of determining— 

23 (A) eligibility of an individual to receive 

24 benefits described in section 3803(c)(2)(C) of 


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1 title 31, United States Code, or the amount of 

2 such benefits; 

3 (B) eligibility of an individual to receive 

4 benefits under title VIII of the Social Security 

5 Act, or the amount of such benefits; or 

6 (C) eligibility of an individual for, or the 

7 amount of benefits under, any other Federal or 

8 federally assisted program. 

9 (h) RELEASE.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), the acceptance by an eligible person or 

12 surviving spouse, as applicable, of a payment under 

13 this section shall be final, and shall constitute a 

14 complete release of any claim against the United 

15 States by reason of any service described in sub16 section (d). 

17 (2) PAYMENT OF PRIOR ELIGIBILITY STATUS.— 

18 Nothing in this section shall prohibit a person from 

19 receiving any benefit (including health care, survivor, 

20 or burial benefits) which the person would have been 

21 eligible to receive based on laws in effect as of the 

22 day before the date of the enactment of this Act. 

23 (i) RECOGNITION OF SERVICE.—The service of a per24 son as described in subsection (d) is hereby recognized as 


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1 active military service in the Armed Forces for purposes 

2 of, and to the extent provided in, this section. 

3 (j) ADMINISTRATION.— 

4 (1) The Secretary shall promptly issue applica5 tion forms and instructions to ensure the prompt 

6 and efficient administration of the provisions of this 

7 section. 

8 (2) The Secretary shall administer the provi9 sions of this section in a manner consistent with ap10 plicable provisions of title 38, United States Code, 

11 and other provisions of law, and shall apply the defi12 nitions in section 101 of such title in the administra13 tion of such provisions, except to the extent other14 wise provided in this section. 

15 (k) REPORTS.—The Secretary shall include, in docu16 ments submitted to Congress by the Secretary in support 

17 of the President’s budget for each fiscal year, detailed in18 formation on the operation of the compensation fund, in19 cluding the number of applicants, the number of eligible 

20 persons receiving benefits, the amounts paid out of the 

21 compensation fund, and the administration of the com22 pensation fund for the most recent fiscal year for which 

23 such data is available. 

24 (l) AUTHORIZATION OF APPROPRIATION.—There is 

25 authorized to be appropriated to the compensation fund 


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AMDT. NO. 98 

1 $198,000,000, to remain available until expended, to make 

2 payments under this section. 

3 RELATED AGENCY 

4 DEPARTMENT OF DEFENSE—CIVIL 

5 CEMETERIAL EXPENSES, ARMY

6 SALARY AND EXPENSES

7 For an additional amount for ‘‘Cemeterial Expenses, 

8 Army’’, $60,300,000, to remain available until September 

9 30, 2010, for land development, columbarium construc10 tion, and relocation of utilities at Arlington National Cem11 etery. 

12 TITLE XI—STATE, FOREIGN OPERATIONS, AND 

13 RELATED PROGRAMS 

14 DEPARTMENT OF STATE 

15 ADMINISTRATION OF FOREIGN AFFAIRS

16 DIPLOMATIC AND CONSULAR PROGRAMS

17 For an additional amount for ‘‘Diplomatic and Con18 sular Programs’’ for urgent domestic facilities require19 ments, $180,500,000, to remain available until September 

20 30, 2010, of which up to $45,000,000 shall be available 

21 for passport and visa facilities and systems, and up to 

22 $75,000,000 shall be available for a consolidated security 

23 training facility in the United States: Provided, That the 

24 Secretary of State shall submit to the Committees on Ap25 propriations within 90 days of enactment of this Act a 


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AMDT. NO. 98 

1 detailed spending plan for funds appropriated under this 

2 heading: Provided further, That with respect to the funds 

3 made available for passport facilities and systems, such 

4 plan shall be developed in consultation with the Depart5 ment of Homeland Security and the General Services Ad6 ministration and shall coordinate and co-locate, to the ex7 tent feasible, the construction of passport agencies with 

8 other Federal facilities. 

9 CAPITAL INVESTMENT FUND

10 For an additional amount for ‘‘Capital Investment 

11 Fund’’, $524,000,000, to remain available until Sep12 tember 30, 2010, of which up to $120,000,000 shall be 

13 available for the design and construction of a backup in14 formation management facility in the United States to 

15 support continuity of critical mission operations and pro16 grams, and up to $98,527,000 shall be available to carry 

17 out the Department of State’s responsibilities under the 

18 Comprehensive National Cybersecurity Initiative: Pro19 vided, That the Secretary of State and the Administrator 

20 of the United States Agency for International Develop21 ment shall coordinate information technology systems, 

22 where appropriate, to increase efficiencies and eliminate 

23 redundancies, to include co-location of backup information 

24 management facilities: Provided further, That the Sec25 retary of State shall submit to the Committees on Appro26 priations within 90 days of enactment of this Act a deVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00224 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 tailed spending plan for funds appropriated under this 

2 heading. 

3 OFFICE OF INSPECTOR GENERAL

4 For an additional amount for ‘‘Office of Inspector 

5 General’’ for oversight requirements, $2,000,000, to re6 main available until September 30, 2010. 

7 INTERNATIONAL COMMISSIONS 

8 INTERNATIONAL BOUNDARY AND WATER COMMISSION, 

9 UNITED STATES AND MEXICO

10 CONSTRUCTION

11 (INCLUDING TRANSFER OF FUNDS)

12 For an additional amount for ‘‘Construction’’ for the 

13 water quantity program to meet immediate repair and re14 habilitation requirements, $224,000,000, to remain avail15 able until September 30, 2010: Provided, That up to 

16 $2,000,000 may be transferred to, and merged with, funds 

17 available under the heading ‘‘International Boundary and 

18 Water Commission, United States and Mexico—Salaries 

19 and Expenses’’: Provided, That the Secretary of State 

20 shall submit to the Committees on Appropriations within 

21 90 days of enactment of this Act a detailed spending plan 

22 for funds appropriated under this heading. 


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AMDT. NO. 98 

1 UNITED STATES AGENCY FOR INTERNATIONAL 

2 DEVELOPMENT 

3 FUNDS APPROPRIATED TO THE PRESIDENT

4 CAPITAL INVESTMENT FUND

5 For an additional amount for ‘‘Capital Investment 

6 Fund’’, $100,000,000, to remain available until Sep7 tember 30, 2010, of which $34,000,000 shall be available 

8 for information technology modernization programs and of 

9 which up to $35,000,000 shall be available for implemen10 tation of the Global Acquisition System: Provided, That 

11 the Administrator of the United States Agency for Inter12 national Development shall submit to the Committees on 

13 Appropriations within 90 days of enactment of this Act 

14 a detailed spending plan for funds appropriated under this 

15 heading. 

16 OPERATING EXPENSES OF THE UNITED STATES AGENCY

17 FOR INTERNATIONAL DEVELOPMENT OFFICE OF IN18 SPECTOR GENERAL

19 For an additional amount for ‘‘Operating Expenses 

20 of the United States Agency for International Develop21 ment Office of Inspector General’’ for oversight require22 ments, $500,000, to remain available until September 30, 

23 2010. 


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AMDT. NO. 98 

1 TITLE XII—TRANSPORTATION AND HOUSING 

2 AND URBAN DEVELOPMENT, AND RELATED 

3 AGENCIES 

4 DEPARTMENT OF TRANSPORTATION 

5 OFFICE OF THE SECRETARY

6 SUPPLEMENTAL DISCRETIONARY GRANTS FOR A

7 NATIONAL SURFACE TRANSPORTATION SYSTEM

8 For an additional amount for capital investments in 

9 surface transportation infrastructure, $5,500,000,000, to 

10 remain available until September 30, 2011: Provided, 

11 That the Secretary of Transportation shall distribute 

12 funds provided under this heading as discretionary grants 

13 to be awarded to State and local governments on a com14 petitive basis for projects that will have a significant im15 pact on the Nation, a metropolitan area, or a region: Pro16 vided further, That projects eligible for funding provided 

17 under this heading shall include, but not be limited to, 

18 highway or bridge projects eligible under title 23, United 

19 States Code, including interstate rehabilitation, improve20 ments to the rural collector road system, the reconstruc21 tion of overpasses and interchanges, bridge replacements, 

22 seismic retrofit projects for bridges, and road realign23 ments; public transportation projects eligible under chap24 ter 53 of title 49, United States Code, including invest25 ments in projects participating in the New Starts or Small 


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1 Starts programs that will expedite the completion of those 

2 projects and their entry into revenue service; passenger 

3 and freight rail transportation projects; and port infra4 structure investments, including projects that connect 

5 ports to other modes of transportation and improve the 

6 efficiency of freight movement: Provided further, That of 

7 the amount made available under this paragraph, the Sec8 retary may use an amount not to exceed $200,000,000 

9 for the purpose of paying the subsidy costs of projects eli10 gible for federal credit assistance under chapter 6 of title 

11 23, United States Code, if the Secretary finds that such 

12 use of the funds would advance the purposes of this para13 graph: Provided further, That in distributing funds pro14 vided under this heading, the Secretary shall take such 

15 measures so as to ensure an equitable geographic distribu16 tion of funds and an appropriate balance in addressing 

17 the needs of urban and rural communities: Provided fur18 ther, That a grant funded under this heading shall be not 

19 less than $20,000,000 and not greater than 

20 $500,000,000: Provided further, That the Federal share 

21 of the costs for which an expenditure is made under this 

22 heading may be up to 100 percent: Provided further, That 

23 the Secretary shall give priority to projects that require 

24 an additional share of Federal funds in order to complete 

25 an overall financing package, and to projects that are exVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00228 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 pected to be completed within 3 years of enactment of this 

2 Act: Provided further, That the Secretary shall publish cri3 teria on which to base the competition for any grants 

4 awarded under this heading not later than 75 days after 

5 enactment of this Act: Provided further, That the Sec6 retary shall require applications for funding provided 

7 under this heading to be submitted not later than 180 

8 days after enactment of this Act, and announce all 

9 projects selected to be funded from such funds not later 

10 than 1 year after enactment of this Act: Provided further, 

11 That the Secretary shall require all additional applications 

12 to be submitted not later than 1 year after enactment of 

13 this Act, and announce not later than 180 days following 

14 such 1-year period all additional projects selected to be 

15 funded with funds withdrawn from States and grantees 

16 and transferred from ‘‘Supplemental Grants for Highway 

17 Investments’’ and ‘‘Supplemental Grants for Public Tran18 sit Investment’’: Provided further, That projects conducted 

19 using funds provided under this heading must comply with 

20 the requirements of subchapter IV of chapter 31 of title 

21 40, United States Code: Provided further, That the Sec22 retary may retain up to $5,000,000 of the funds provided 

23 under this heading, and may transfer portions of those 

24 funds to the Administrators of the Federal Highway Ad25 ministration, the Federal Transit Administration, the 


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1 Federal Railroad Administration and the Maritime Ad2 ministration, to fund the award and oversight of grants 

3 made under this heading. 

4 FEDERAL AVIATION ADMINISTRATION

5 SUPPLEMENTAL FUNDING FOR FACILITIES AND

6 EQUIPMENT

7 For an additional amount for necessary investments 

8 in Federal Aviation Administration infrastructure, 

9 $200,000,000: Provided, That funding provided under this 

10 heading shall be used to make improvements to power sys11 tems, air route traffic control centers, air traffic control 

12 towers, terminal radar approach control facilities, and 

13 navigation and landing equipment: Provided further, That 

14 priority be given to such projects or activities that will be 

15 completed within 2 years of enactment of this Act: Pro16 vided further, That amounts made available under this 

17 heading may be provided through grants in addition to 

18 the other instruments authorized under section 106(l)(6) 

19 of title 49, United States Code: Provided further, That the 

20 Federal share of the costs for which an expenditure is 

21 made under this heading shall be 100 percent: Provided 

22 further, That amounts provided under this heading may 

23 be used for expenses the agency incurs in administering 

24 this program: Provided further, That not more than 60 

25 days after enactment of this Act, the Administrator shall 


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1 establish a process for applying, reviewing and awarding 

2 grants and cooperative and other transaction agreements, 

3 including the form and content of an application, and re4 quirements for the maintenance of records that are nec5 essary to facilitate an effective audit of the use of the 

6 funding provided: Provided further, That section 50101 of 

7 title 49, United States Code, shall apply to funds provided 

8 under this heading. 

9 SUPPLEMENTAL DISCRETIONARY GRANTS FOR AIRPORT

10 INVESTMENT

11 For an additional amount for capital expenditures 

12 authorized under sections 47102(3) and 47504(c) of title 

13 49, United States Code, and for the procurement, installa14 tion and commissioning of runway incursion prevention 

15 devices and systems at airports of such title, 

16 $1,100,000,000: Provided, That the Secretary of Trans17 portation shall distribute funds provided under this head18 ing as discretionary grants to airports, with priority given 

19 to those projects that demonstrate to his or her satisfac20 tion their ability to be completed within 2 years of enact21 ment of this Act, and serve to supplement and not sup22 plant planned expenditures from airport-generated reve23 nues or from other State and local sources on such activi24 ties: Provided further, That the Federal share payable of 

25 the costs for which a grant is made under this heading 

26 shall be 100 percent: Provided further, That the amount 


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1 made available under this heading shall not be subject to 

2 any limitation on obligations for the Grants-in-Aid for Air3 ports program set forth in any Act: Provided further, That 

4 section 50101 of title 49, United States Code, shall apply 

5 to funds provided under this heading: Provided further, 

6 That projects conducted using funds provided under this 

7 heading must comply with the requirements of subchapter 

8 IV of chapter 31 of title 40, United States Code: Provided 

9 further, That the Administrator of the Federal Aviation 

10 Administration may retain and transfer to ‘‘Federal Avia11 tion Administration, Operations’’ up to one-quarter of 1 

12 percent of the funds provided under this heading to fund 

13 the award and oversight by the Administrator of grants 

14 made under this heading. 

15 FEDERAL HIGHWAY ADMINISTRATION

16 SUPPLEMENTAL GRANTS FOR HIGHWAY INVESTMENT

17 For an additional amount for restoration, repair, con18 struction and other activities eligible under paragraph (b) 

19 of section 133 of title 23, United States Code, 

20 $27,060,000,000: Provided, That funds provided under 

21 this heading shall be apportioned to States using the for22 mula set forth in section 104(b)(3) of such title: Provided 

23 further, That 180 days following the date of such appor24 tionment, the Secretary of Transportation shall withdraw 

25 from each State an amount equal to 50 percent of the 


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1 funds awarded to that grantee less the amount of funding 

2 obligated, and the Secretary shall redistribute such 

3 amounts to other States that have had no funds with4 drawn under this proviso in the manner described in sec5 tion 120(c) of division K of Public Law 110–161: Provided 

6 further, That 1 year following the date of such apportion7 ment, the Secretary shall withdraw from each recipient of 

8 funds apportioned under this heading any unobligated 

9 funds and transfer such funds to ‘‘Supplemental Discre10 tionary Grants for a National Surface Transportation Sys11 tem’’: Provided further, That at the request of a State, 

12 the Secretary of Transportation may provide an extension 

13 of such 1-year period only to the extent that he or she 

14 feels satisfied that the State has encountered extreme con15 ditions that create an unworkable bidding environment or 

16 other extenuating circumstances: Provided further, That 

17 before granting a such an extension, the Secretary shall 

18 send a letter to the House and Senate Committees on Ap19 propriations that provides a thorough justification for the 

20 extension: Provided further, That the provisions of sub21 sections 133(d)(3) and 133(d)(4) of title 23, United 

22 States Code, shall apply to funds apportioned under this 

23 heading, except that the percentage of funds to be allo24 cated to local jurisdictions shall be 40 percent and such 

25 allocation, notwithstanding any other provision of law, 


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1 shall be conducted in all states within the United States: 

2 Provided further, That funds allocated to such urbanized 

3 areas and other areas shall not be subject to the redis4 tribution of amounts required 180 days following the date 

5 of apportionment of funds provided under this heading: 

6 Provided further, That funds apportioned under this head7 ing may be used for, but not be limited to, projects that 

8 address stormwater runoff, investments in passenger and 

9 freight rail transportation, and investments in port infra10 structure: Provided further, that each State shall use not 

11 less than 5 percent of funds apportioned to it for activities 

12 eligible under subsections 149(b) and (c) of title 23, 

13 United States Code: Provided further, That of the funds 

14 provided under this heading, $60,000,000 shall be for cap15 ital expenditures eligible under section 147 of title 23, 

16 United States Code: Provided further, That the Secretary 

17 of Transportation shall distribute such $60,000,000 as 

18 competitive discretionary grants to States, with priority 

19 given to those projects that demonstrate to his or her sat20 isfaction their ability to be completed within 2 years of 

21 enactment of this Act: Provided further, That of the funds 

22 provided under this heading, $500,000,000 shall be for in23 vestments in transportation at Indian reservations and 

24 Federal lands, and administered in accordance with chap25 ter 2 of title 23, United States Code: Provided further, 


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1 That of the funds identified in the preceding proviso, 

2 $320,000,000 shall be for the Indian Reservation Roads 

3 program, $100,000,000 shall be for the Park Roads and 

4 Parkways program, $70,000,000 shall be for the Forest 

5 Highway Program, and $10,000,000 shall be for the Ref6 uge Roads program: Provided further, That for invest7 ments at Indian reservations and Federal lands, priority 

8 shall be given to capital investments, and to projects and 

9 activities that can be completed within 2 years of enact10 ment of this Act: Provided further, That 1 year following 

11 the enactment of this Act, to ensure the prompt use of 

12 the $500,000,000 provided for investments at Indian res13 ervations and Federal lands, the Secretary shall have the 

14 authority to redistribute unobligated funds within the re15 spective program for which the funds were appropriated: 

16 Provided further, That up to 4 percent of the funding pro17 vided for Indian Reservation Roads may be used by the 

18 Secretary of the Interior for program management and 

19 oversight and project-related administrative expenses: Pro20 vided further, That section 134(f)(3)(C)(ii)(II) of title 23, 

21 United States Code, shall not apply to funds provided 

22 under this heading: Provided further, That the Federal 

23 share payable on account of any project or activity carried 

24 out with funds made available under this heading shall 

25 be at the option of the recipient, and may be up to 100 


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1 percent of the total cost thereof: Provided further, That 

2 funding provided under this heading shall be in addition 

3 to any and all funds provided for fiscal years 2008 and 

4 2009 in any other Act for ‘‘Federal-aid Highways’’ and 

5 shall not affect the distribution of funds provided for 

6 ‘‘Federal-aid Highways’’ in any other Act: Provided fur7 ther, That the amount made available under this heading 

8 shall not be subject to any limitation on obligations for 

9 Federal-aid highways or highway safety construction pro10 grams set forth in any Act: Provided further, That projects 

11 conducted using funds provided under this heading must 

12 comply with the requirements of subchapter IV of chapter 

13 31 of title 40, United States Code: Provided further, That 

14 section 313 of title 23, United States Code, shall apply 

15 to funds provided under this heading: Provided further, 

16 That section 1101(b) of Public Law 109–59 shall apply 

17 to funds apportioned under this heading: Provided further, 

18 That for the purposes of the definition of States for this 

19 paragraph, sections 101(a)(32) of title 23, United States 

20 Code, shall apply: Provided further, That the Adminis21 trator of the Federal Highway Administration may retain 

22 up to $12,000,000 of the funds provided under this head23 ing to carry out the function of the ‘‘Federal Highway Ad24 ministration, Limitation on Administrative Expenses’’ and 

25 to fund the oversight by the Administrator of projects and 


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1 activities carried out with funds made available to the 

2 Federal Highway Administration in this Act. 

3 FEDERAL RAILROAD ADMINISTRATION

4 SUPPLEMENTAL GRANTS TO STATES FOR INTERCITY

5 PASSENGER RAIL SERVICE

6 For an additional amount for discretionary grants to 

7 States to pay for the cost of projects described in para8 graphs (2)(A) and (2)(B) of section 24401 of title 49, 

9 United States Code, and subsection (b) of section 24105 

10 of such title, $250,000,000: Provided, That to be eligible 

11 for assistance under this paragraph, the specific project 

12 must be on a Statewide Transportation Improvement Plan 

13 at the time of the application to qualify: Provided further, 

14 That the Secretary of Transportation shall give priority 

15 to projects that demonstrate an ability to be completed 

16 within 2 years of enactment of this Act, and to projects 

17 that improve the safety and reliability of intercity pas18 senger trains: Provided further, That the Federal share 

19 payable of the costs for which a grant is made under this 

20 heading shall be 100 percent: Provided further, That 

21 projects conducted using funds provided under this head22 ing must comply with the requirements of subchapter IV 

23 of chapter 31 of title 40, United States Code: Provided 

24 further, That section 24405(a) of title 49, United States 

25 Code, shall apply to funds provided under this heading: 


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1 Provided further, That the Administrator of the Federal 

2 Railroad Administration may retain and transfer to ‘‘Fed3 eral Railroad Administration, Safety and Operations’’ up 

4 to one-quarter of 1 percent of the funds provided under 

5 this heading to fund the award and oversight by the Ad6 ministrator of grants made under this heading. 

7 SUPPLEMENTAL CAPITAL GRANTS TO THE NATIONAL

8 RAILROAD PASSENGER CORPORATION

9 For an additional amount for the immediate invest10 ment in capital projects necessary to maintain and im11 prove national intercity passenger rail service, including 

12 the rehabilitation of rolling stock, $850,000,000: Provided, 

13 That funds made available under this heading shall be al14 located directly to the National Railroad Passenger Cor15 poration: Provided further, That the Board of Directors 

16 of the corporation shall take measures to ensure that pri17 ority is given to capital projects that expand passenger 

18 rail capacity: Provided further, That the Board of Direc19 tors shall take measures to ensure that projects funded 

20 under this heading shall be completed within 2 years of 

21 enactment of this Act, and shall serve to supplement and 

22 not supplant planned expenditures for such activities from 

23 other Federal, State, local and corporate sources: Provided 

24 further, That said Board of Directors shall certify to the 

25 House and Senate Committees on Appropriations in writ26 ing their compliance with the preceding proviso: Provided 


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1 further, That section 24305(f) of title 49, United States 

2 Code, shall apply to funds provided under this heading: 

3 Provided further, That not more than 50 percent of the 

4 funds provided under this heading may be used for capital 

5 projects along the Northeast Corridor. 

6 HIGH-SPEED RAIL CORRIDOR PROGRAM

7 To make grants for high-speed rail projects under the 

8 provisions of section 26106 of title 49, United States 

9 Code, $2,000,000,000, to remain available until Sep10 tember 30, 2011: Provided, That the Federal share pay11 able of the costs for which a grant is made under this 

12 heading shall be 100 percent: Provided further, That the 

13 Administrator of the Federal Railroad Administration 

14 may retain and transfer to ‘‘Federal Railroad Administra15 tion, Safety and Operations’’ up to one-quarter of 1 per16 cent of the funds provided under this heading to fund the 

17 award and oversight by the Administrator of grants made 

18 under this paragraph. 

19 FEDERAL TRANSIT ADMINISTRATION

20 SUPPLEMENTAL GRANTS FOR PUBLIC TRANSIT

21 INVESTMENT

22 For an additional amount for capital expenditures 

23 authorized under section 5302(a)(1) of title 49, United 

24 States Code, $8,400,000,000: Provided, That the Sec25 retary of Transportation shall apportion 71 percent of the 

26 funds apportioned under this heading using the formula 


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1 set forth in subsections (a) through (c) of section 5336 

2 of title 49, United States Code, 19 percent of the funds 

3 apportioned under this heading using the formula set 

4 forth in section 5340 of such title, and 10 percent of the 

5 funding apportioned under this heading using the formula 

6 set forth in subsection 5311(c) of such title: Provided fur7 ther, That 180 days following the date of such apportion8 ment, the Secretary shall withdraw from each grantee an 

9 amount equal to 50 percent of the funds awarded to that 

10 grantee less the amount of funding obligated, and the Sec11 retary shall redistribute such amounts to other grantees 

12 that have had no funds withdrawn under this proviso uti13 lizing whatever method he or she deems appropriate to en14 sure that all funds provided under this paragraph shall 

15 be utilized promptly: Provided further, That 1 year fol16 lowing the date of such apportionment, the Secretary shall 

17 withdraw from each grantee any unobligated funds and 

18 transfer such funds to ‘‘Supplemental Discretionary 

19 Grants for a National Surface Transportation System’’: 

20 Provided further, That at the request of a grantee, the 

21 Secretary of Transportation may provide an extension of 

22 such 1-year periods if he or she feels satisfied that the 

23 grantee has encountered an unworkable bidding environ24 ment or other extenuating circumstances: Provided fur25 ther, That before granting such an extension, the SecVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00240 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 retary shall send a letter to the House and Senate Com2 mittees on Appropriations that provides a thorough jus3 tification for the extension: Provided further, That of the 

4 funds apportioned using the formula set forth in sub5 section 5311(c) of title 49, United States Code, 2 percent 

6 shall be made available for section 5311(c)(1): Provided 

7 further, That of the funding provided under this heading, 

8 $200,000,000 shall be distributed as discretionary grants 

9 to public transit agencies for capital investments that will 

10 assist in reducing the energy consumption or greenhouse 

11 gas emissions of their public transportation systems: Pro12 vided further, That for such grants on energy-related in13 vestments, priority shall be given to projects based on the 

14 total energy savings that are projected to result from the 

15 investment, and projected energy savings as a percentage 

16 of the total energy usage of the public transit agency: Pro17 vided further, That the Federal share of the costs for 

18 which any grant is made under this heading shall be at 

19 the option of the recipient, and may be up to 100 percent: 

20 Provided further, That the amount made available under 

21 this heading shall not be subject to any limitation on obli22 gations for transit programs set forth in any Act: Provided 

23 further, That section 1101(b) of Public Law 109–59 shall 

24 apply to funds apportioned under this heading: Provided 

25 further, That the funds appropriated under this heading 


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AMDT. NO. 98 

1 shall be subject to subsection 5323(j) and section 5333 

2 of title 49, United States Code as well as sections 5304 

3 and 5305 of said title, as appropriate, but shall not be 

4 comingled with funds available under the Formula and 

5 Bus Grants account: Provided further, That the Adminis6 trator of the Federal Transit Administration may retain 

7 up to $3,000,000 of the funds provided under this heading 

8 to carry out the function of ‘‘Federal Transit Administra9 tion, Administrative Expenses’’ and to fund the oversight 

10 of grants made under this heading by the Administrator. 

11 MARITIME ADMINISTRATION

12 SUPPLEMENTAL GRANTS FOR ASSISTANCE TO SMALL

13 SHIPYARDS

14 To make grants to qualified shipyards as authorized 

15 under section 3506 of Public Law 109–163 or section 

16 54101 of title 46, United States Code, $100,000,000: Pro17 vided, That the Secretary of Transportation shall institute 

18 measures to ensure that funds provided under this head19 ing shall be obligated within 180 days of the date of their 

20 distribution: Provided further, That the Maritime Adminis21 trator may retain and transfer to ‘‘Maritime Administra22 tion, Operations and Training’’ up to 2 percent of the 

23 funds provided under this heading to fund the award and 

24 oversight by the Administrator of grants made under this 

25 heading. 


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AMDT. NO. 98 

1 OFFICE OF INSPECTOR GENERAL

2 SALARIES AND EXPENSES

3 For an additional amount for necessary expenses of 

4 the Office of Inspector General to carry out the provisions 

5 of the Inspector General Act of 1978, as amended, 

6 $7,750,000, to remain available until September 30, 2011: 

7 Provided, That the funding made available under this 

8 heading shall be used for conducting audits and investiga9 tions of projects and activities carried out with funds made 

10 available in this Act to the Department of Transportation 

11 and to the National Railroad Passenger Corporation: Pro12 vided further, That the Inspector General shall have all 

13 necessary authority, in carrying out the duties specified 

14 in the Inspector General Act, as amended (5 U.S.C. App. 

15 3), to investigate allegations of fraud, including false 

16 statements to the Government (18 U.S.C. 1001), by any 

17 person or entity that is subject to regulation by the De18 partment. 

19 GENERAL PROVISION—DEPARTMENT OF 

20 TRANSPORTATION 

21 SEC. 1201. Section 5309(g)(4)(A) of title 49, United 

22 States Code, is amended by striking ‘‘or an amount equiv23 alent to the last 3 fiscal years of funding allocated under 

24 subsections (m)(1)(A) and (m)(2)(A)(ii)’’ and inserting 

25 ‘‘or the sum of the funds available for the next 3 fiscal 


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1 years beyond the current fiscal year, assuming an annual 

2 growth of the program of 10 percent’’. 

3 DEPARTMENT OF HOUSING AND URBAN 

4 DEVELOPMENT 

5 NATIVE AMERICAN HOUSING BLOCK GRANTS

6 For an additional amount for ‘‘Native American 

7 Housing Block Grants’’, as authorized under title I of the 

8 Native American Housing Assistance and Self-Determina9 tion Act of 1996 (‘‘NAHASDA’’) (25 U.S.C. 4111 et 

10 seq.), $510,000,000, to remain available until September 

11 30, 2011: Provided, That $255,000,000 of the amount 

12 provided under this heading shall be distributed according 

13 to the same funding formula used in fiscal year 2008: Pro14 vided further, That in selecting projects to be funded, re15 cipients shall give priority to projects that can award con16 tracts based on bids within 180 days from the date that 

17 funds are available to recipients: Provided further, That 

18 the Secretary shall obligate $255,000,000 of the amount 

19 provided under this heading for competitive grants to eligi20 ble entities that apply for funds authorized under 

21 NAHASDA: Provided further, That in awarding competi22 tive funds, the Secretary shall give priority to projects that 

23 will spur construction and rehabilitation and will create 

24 employment opportunities for low-income and unemployed 

25 persons: Provided further, That recipients of funds under 


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1 this heading shall obligate 100 percent of such funds with2 in 1 year of the date of enactment of this Act, expend 

3 at least 50 percent of such funds within 2 years of the 

4 date on which funds become available to such jurisdictions 

5 for obligation, and expend 100 percent of such funds with6 in 3 years of such date: Provided further, That if a recipi7 ent fails to comply with either the 1-year obligation re8 quirement or the 2-year expenditure requirement, the Sec9 retary shall recapture all remaining funds awarded to the 

10 recipient and reallocate such funds to recipients that are 

11 in compliance with those requirements: Provided further, 

12 That if a recipient fails to comply with the 3-year expendi13 ture requirement, the Secretary shall recapture the bal14 ance of the funds awarded to the recipient: Provided fur15 ther, That, notwithstanding any other provision of this 

16 paragraph, the Secretary may institute measures to en17 sure participation in the formula and competitive alloca18 tion of funds provided under this paragraph by any hous19 ing entity eligible to receive funding under title VIII of 

20 NAHASDA (25 U.S.C. 4221 et seq.): Provided further, 

21 That in administering funds provided in this heading, the 

22 Secretary may waive any provision of any statute or regu23 lation that the Secretary administers in connection with 

24 the obligation by the Secretary or the use by the recipient 

25 of these funds except for requirements imposed by this 


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AMDT. NO. 98 

1 heading and requirements related to fair housing, non2 discrimination, labor standards, and the environment, 

3 upon a finding that such waiver is required to facilitate 

4 the timely use of such funds and would not be inconsistent 

5 with the overall purpose of the statute or regulation: Pro6 vided further, That, of the funds made available under this 

7 heading, up to 1 percent shall be available for staffing, 

8 training, technical assistance, technology, monitoring, re9 search and evaluation activities: Provided further, That 

10 any funds made available under this heading used by the 

11 Secretary for personnel expenses shall be transferred to 

12 and merged with funding provided to ‘‘Personnel Com13 pensation and Benefits, Office of Public and Indian Hous14 ing’’: Provided further, That any funds made available 

15 under this heading used by the Secretary for training or 

16 other administrative expenses shall be transferred to and 

17 merged with funding provided to ‘‘Administration, Oper18 ations, and Management’’, for non-personnel expenses of 

19 the Department of Housing and Urban Development: Pro20 vided further, That any funds made available under this 

21 heading used by the Secretary for technology shall be 

22 transferred to and merged with the funding provided to 

23 ‘‘Working Capital Fund’’. 


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AMDT. NO. 98 

1 PUBLIC HOUSING CAPITAL FUND

2 For an additional amount for the ‘‘Public Housing 

3 Capital Fund’’ to carry out capital and management ac4 tivities for public housing agencies, as authorized under 

5 section 9 of the United States Housing Act of 1937 (42 

6 U.S.C. 1437g) (the ‘‘Act’’), $5,000,000,000, to remain 

7 available until September 30, 2011: Provided, That the 

8 Secretary of Housing and Urban Development shall allo9 cate $3,000,000,000 of this amount by the formula au10 thorized under section 9(d)(2) of the Act, except that the 

11 Secretary may determine not to allocate funding to public 

12 housing agencies currently designated as troubled or to 

13 public housing agencies that elect not to accept such fund14 ing: Provided further, That the Secretary shall make avail15 able $2,000,000,000 by competition for priority invest16 ments, including investments that leverage private sector 

17 funding or financing for renovations and energy conserva18 tion retrofit investments: Provided further, That public 

19 housing agencies shall prioritize capital projects that are 

20 already underway or included in the 5-year capital fund 

21 plans required by the Act (42 U.S.C. 1437c–1(a)): Pro22 vided further, That in allocating competitive grants under 

23 this heading, the Secretary shall give priority consider24 ation to the rehabilitation of vacant rental units: Provided 

25 further, That notwithstanding any other provision of law, 


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AMDT. NO. 98 

1 (1) funding provided herein may not be used for operating 

2 or rental assistance activities, and (2) any restriction of 

3 funding to replacement housing uses shall be inapplicable: 

4 Provided further, That notwithstanding any other provi5 sion of law, the Secretary shall institute measures to en6 sure that funds provided under this heading shall serve 

7 to supplement and not supplant expenditures from other 

8 Federal, State, or local sources or funds independently 

9 generated by the grantee: Provided further, That notwith10 standing section 9(j), public housing agencies shall obli11 gate 100 percent of the funds within 1 year of the date 

12 of enactment of this Act, shall expend at least 60 percent 

13 of funds within 2 years of the date on which funds become 

14 available to the agency for obligation, and shall expend 

15 100 percent of the funds within 3 years of such date: Pro16 vided further, That if a public housing agency fails to com17 ply with either the 1-year obligation requirement or the 

18 2-year expenditure requirement, the Secretary shall recap19 ture all remaining funds awarded to the public housing 

20 agency and reallocate such funds to agencies that are in 

21 compliance with those requirements: Provided further, 

22 That if a public housing agency fails to comply with the 

23 3-year expenditure requirement, the Secretary shall recap24 ture the balance of the funds awarded to the public hous25 ing agency: Provided further, That in administering funds 


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1 provided in this heading, the Secretary may waive any pro2 vision of any statute or regulation that the Secretary ad3 ministers in connection with the obligation by the Sec4 retary or the use by the recipient of these funds except 

5 for requirements imposed by this heading and require6 ments related to conditions on use of funds for develop7 ment and modernization, fair housing, non-discrimination, 

8 labor standards, and the environment, upon a finding that 

9 such waiver is required to facilitate the timely use of such 

10 funds and would not be inconsistent with the overall pur11 pose of the statute or regulation: Provided further, That 

12 of the funds made available under this heading, up to 1 

13 percent shall be available for staffing, training, technical 

14 assistance, technology, monitoring, research and evalua15 tion activities: Provided further, That any funds made 

16 available under this heading used by the Secretary for per17 sonnel expenses shall be transferred to and merged with 

18 funding provided to ‘‘Personnel Compensation and Bene19 fits, Office of Public and Indian Housing’’: Provided fur20 ther, That any funds made available under this heading 

21 used by the Secretary for training or other administrative 

22 expenses shall be transferred to and merged with funding 

23 provided to ‘‘Administration, Operations, and Manage24 ment’’, for non-personnel expenses of the Department of 

25 Housing and Urban Development: Provided further, That 


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1 any funds made available under this heading used by the 

2 Secretary for technology shall be transferred to and 

3 merged with the funding provided to ‘‘Working Capital 

4 Fund’’. 

5 NEIGHBORHOOD STABILIZATION PROGRAM

6 For the provision of emergency assistance for the re7 development of abandoned and foreclosed homes, as au8 thorized by title III of division B of the Housing and Eco9 nomic Recovery Act of 2008 (the ‘‘Act’’) (42 U.S.C. 5301 

10 note), $2,250,000,000, to remain available until Sep11 tember 30, 2011: Provided, That funding shall be allo12 cated by a competition for which eligible entities shall be 

13 States, units of general local government, and nonprofit 

14 entities or consortia of nonprofit entities, which may sub15 mit proposals in partnership with for-profit entities: Pro16 vided further, That in selecting grantees the Secretary 

17 shall ensure that the grantee can expend funding within 

18 the period allowed under this heading: Provided further, 

19 That additional award criteria for such competition shall 

20 include demonstrated grantee capacity to execute projects, 

21 leveraging potential, targeted impact of foreclosure pre22 vention, neighborhood stabilization, and any additional 

23 factors determined by the Secretary of Housing and 

24 Urban Development: Provided further, That the Secretary 

25 may establish a minimum grant size: Provided further, 


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1 That the Secretary shall publish criteria on which to base 

2 the competition for any grants awarded under this heading 

3 not later than 75 days after the enactment of this Act 

4 and applications shall be due not later than 180 days after 

5 the enactment of this Act: Provided further, That the Sec6 retary shall award all funding within 1 year of enactment 

7 of this Act: Provided further, That grantees shall expend 

8 at least 75 percent of allocated funds within 2 years of 

9 the date funds become available to the grantees for obliga10 tion and 100 percent of such funds within 3 years of such 

11 date: Provided further, That funding used for section 

12 2301(c)(3)(E) of the Act shall be available only for the 

13 redevelopment of demolished or vacant properties as hous14 ing: Provided further, That in addition to the eligible uses 

15 in section 2301, the Secretary may also use up to 10 per16 cent of the funds provided under this heading for grantees 

17 for the provision of capacity building of and support for 

18 local communities receiving funding under section 2301 of 

19 the Act or under this heading: Provided further, That the 

20 construction or rehabilitation of early childhood and devel21 opment centers serving households that qualify as low in22 come shall also be an eligible use of funding: Provided fur23 ther, That in addition to the allowable uses of revenues 

24 provided in section 2301 of the Act, any revenues gen25 erated in the first 5 years using the funds provided under 


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1 this heading may be used by the State or applicable unit 

2 of general local government for maintenance associated 

3 with property acquisition and holding and with land bank4 ing activities: Provided further, That of the funds provided 

5 under this heading, up to 1.5 percent shall be available 

6 for staffing, training, technical assistance, technology, 

7 monitoring, research and evaluation activities: Provided 

8 further, That any funds made available under this heading 

9 used by the Secretary for personnel expense shall be trans10 ferred to and merged with funding provided to ‘‘Commu11 nity Planning and Development Personnel Compensation 

12 and Benefits’’: Provided further, That any funds made 

13 available under this heading used by the Secretary for 

14 training or other administrative expenses shall be trans15 ferred to and merged with funding provided to ‘‘Adminis16 tration, Operations, and Management’’ for non-personnel 

17 expenses of the Department of Housing and Urban Devel18 opment: Provided further, That any funding made avail19 able under this heading used by the Secretary for tech20 nology shall be transferred to and merged with the fund21 ing provided to ‘‘Working Capital Fund.’’ 

22 HOME INVESTMENT PARTNERSHIPS PROGRAM

23 For an additional amount for the ‘‘HOME Invest24 ment Partnerships Program’’ as authorized under title II 

25 of the Cranston-Gonzalez National Affordable Housing 


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1 Act (the ‘‘Act’’), $2,250,000,000, to remain available until 

2 September 30, 2011: Provided, That except as specifically 

3 provided herein, funds provided under this heading shall 

4 be distributed pursuant to the formula authorized by sec5 tion 217 of the Act: Provided further, That the Secretary 

6 may establish a minimum grant size: Provided further, 

7 That participating jurisdictions shall obligate 100 percent 

8 of the funds within 1 year of the date of enactment of 

9 this Act, shall expend at least 60 percent of funds within 

10 2 years of the date on which funds become available to 

11 the participating jurisdiction for obligation and shall ex12 pend 100 percent of the funds within 3 years of such date: 

13 Provided further, That if a participating jurisdiction fails 

14 to comply with either the 1-year obligation requirement 

15 or the 2-year expenditure requirement, the Secretary shall 

16 recapture all remaining funds awarded to the participating 

17 jurisdiction and reallocate such funds to participating ju18 risdictions that are in compliance with those requirements: 

19 Provided further, That if a participating jurisdiction fails 

20 to comply with the 3-year expenditure requirement, the 

21 Secretary shall recapture the balance of the funds awarded 

22 to the participating jurisdiction: Provided further, That in 

23 administering funds under this heading, the Secretary 

24 may waive any provision of any statute or regulation that 

25 the Secretary administers in connection with the obligaVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00253 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 tion by the Secretary or the use by the recipient of these 

2 funds except for requirements imposed by this heading 

3 and requirements related to fair housing, non-discrimina4 tion, labor standards and the environment, upon a finding 

5 that such waiver is required to facilitate the timely use 

6 of such funds and would not be inconsistent with the over7 all purpose of the statute or regulation: Provided further, 

8 That the Secretary may use funds provided under this 

9 heading to provide incentives to grantees to use funding 

10 for investments in energy efficiency and green building 

11 technology: Provided further, That such incentives may in12 clude allocation of up to 20 percent of funds made avail13 able under this heading other than pursuant to the for14 mula authorized by section 217 of the Act: Provided fur15 ther, That, of the funds made available under this heading, 

16 up to 1 percent shall be available for staffing, training, 

17 technical assistance, technology, monitoring, research and 

18 evaluation activities: Provided further, That any funds 

19 made available under this heading used by the Secretary 

20 for personnel expenses shall be transferred to and merged 

21 with funding provided to ‘‘Personnel Compensation and 

22 Benefits, Office of Community Planning and Develop23 ment’’: Provided further, That any funds made available 

24 under this heading used by the Secretary for training or 

25 other administrative expenses shall be transferred to and 


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1 merged with funding provided to ‘‘Administration, Oper2 ations, and Management’’, for non-personnel expenses of 

3 the Department of Housing and Urban Development: Pro4 vided further, That any funds made available under this 

5 heading used by the Secretary for technology shall be 

6 transferred to and merged with the funding provided to 

7 ‘‘Working Capital Fund’’. 

8 HOMELESSNESS PREVENTION FUND

9 For homelessness prevention activities, 

10 $1,500,000,000, to remain available until September 30, 

11 2011: Provided, That funds provided under this heading 

12 shall be used for the provision of short-term or medium13 term rental assistance; housing relocation and stabiliza14 tion services including housing search, mediation or out15 reach to property owners, credit repair, security or utility 

16 deposits, utility payments, rental assistance for a final 

17 month at a location, and moving cost assistance; or other 

18 appropriate homelessness prevention activities: Provided 

19 further, That grantees receiving such assistance shall col20 lect data on the use of the funds awarded and persons 

21 served with this assistance in the Homeless Management 

22 Information System (HMIS) or other comparable data23 base: Provided further, That grantees may use up to 5 per24 cent of any grant for administrative costs: Provided fur25 ther, That funding made available under this heading shall 


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1 be allocated to eligible grantees (as defined and designated 

2 in sections 411 and 412 of subtitle B of title IV of the 

3 McKinney-Vento Homeless Assistance Act, (the ‘‘Act’’)) 

4 pursuant to the formula authorized by section 413 of the 

5 Act: Provided further, That the Secretary may establish 

6 a minimum grant size: Provided further, That grantees 

7 shall expend at least 75 percent of funds within 2 years 

8 of the date that funds became available to them for obliga9 tion, and 100 percent of funds within 3 years of such date, 

10 and the Secretary may recapture unexpended funds in vio11 lation of the 2-year expenditure requirement and reallo12 cate such funds to grantees in compliance with that re13 quirement: Provided further, That the Secretary may 

14 waive statutory or regulatory provisions (except provisions 

15 for fair housing, nondiscrimination, labor standards, and 

16 the environment) necessary to facilitate the timely expend17 iture of funds: Provided further, That the Secretary shall 

18 publish a notice to establish such requirements as may be 

19 necessary to carry out the provisions of this section within 

20 30 days of enactment of the Act and that this notice shall 

21 take effect upon issuance: Provided further, That of the 

22 funds provided under this heading, up to 1.5 percent shall 

23 be available for staffing, training, technical assistance, 

24 technology, monitoring, research and evaluation activities: 

25 Provided further, That any funds made available under 


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1 this heading used by the Secretary for personnel expense 

2 shall be transferred to and merged with funding provided 

3 to ‘‘Community Planning and Development Personnel 

4 Compensation and Benefits’’: Provided further, That any 

5 funds made available under this heading used by the Sec6 retary for training or other administrative expenses shall 

7 be transferred to and merged with funding provided to 

8 ‘‘Administration, Operations, and Management’’ for non9 personnel expenses of the Department of Housing and 

10 Urban Development: Provided further, That any funding 

11 made available under this heading used by the Secretary 

12 for technology shall be transferred to and merged with the 

13 funding provided to ‘‘Working Capital Fund.’’ 

14 ASSISTED HOUSING STABILITY AND ENERGY AND

15 GREEN RETROFIT INVESTMENTS

16 For assistance to owners of properties receiving 

17 project-based assistance pursuant to section 202 of the 

18 Housing Act of 1959 (12 U.S.C. 17012), section 811 of 

19 the Cranston-Gonzalez National Affordable Housing Act 

20 (42 U.S.C. 8013), or section 8 of the United States Hous21 ing Act of 1937 as amended (42 U.S.C. 1437f), 

22 $3,500,000,000, of which $2,132,000,000 shall be for an 

23 additional amount for paragraph (1) under the heading 

24 ‘‘Project-Based Rental Assistance’’ in Public Law 110– 

25 161 for payments to owners for 12-month periods, and 


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1 of which $1,368,000,000 shall be for grants or loans for 

2 energy retrofit and green investments in such assisted 

3 housing: Provided, That projects funded with grants or 

4 loans provided under this heading must comply with the 

5 requirements of subchapter IV of chapter 31 of title 40, 

6 United States Code: Provided further, That such grants 

7 or loans shall be provided through the existing policies, 

8 procedures, contracts, and transactional infrastructure of 

9 the authorized programs administered by the Office of Af10 fordable Housing Preservation of the Department of 

11 Housing and Urban Development, on such terms and con12 ditions as the Secretary of Housing and Urban Develop13 ment deems appropriate to ensure the maintenance and 

14 preservation of the property, the continued operation and 

15 maintenance of energy efficiency technologies, and the 

16 timely expenditure of funds: Provided further, That the 

17 Secretary may provide incentives to owners to undertake 

18 energy or green retrofits as a part of such grant or loan 

19 terms, including, but not limited to, investment fees to 

20 cover oversight and implementation costs incurred by said 

21 owner, or to encourage job creation for low-income or very 

22 low-income individuals: Provided further, That the grants 

23 or loans shall include a financial assessment and physical 

24 inspection of such property: Provided further, That eligible 

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1 view rating, be in substantial compliance with applicable 

2 performance standards and legal requirements, and com3 mit to an additional period of affordability determined by 

4 the Secretary, but of not fewer than 15 years: Provided 

5 further, That the Secretary shall undertake appropriate 

6 underwriting and oversight with respect to grant and loan 

7 transactions and may set aside up to 5 percent of the 

8 funds made available under this heading for grants or 

9 loans for such purpose: Provided further, That the Sec10 retary shall take steps necessary to ensure that owners 

11 receiving funding for energy and green retrofit invest12 ments under this heading shall expend such funding with13 in 2 years of the date they received the funding: Provided 

14 further, That the Secretary may waive or modify statutory 

15 or regulatory requirements with respect to any existing 

16 grant, loan, or insurance mechanism authorized to be used 

17 by the Secretary to enable or facilitate the accomplishment 

18 of investments supported with funds made available under 

19 this heading for grants or loans: Provided further, That 

20 of the funds provided under this heading, up to 1.5 per21 cent shall be available for staffing, training, technical as22 sistance, technology, monitoring, research and evaluation 

23 activities: Provided further, That funding made available 

24 under this heading and used by the Secretary for per25 sonnel expenses shall be transferred to and merged with 


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1 funding provided to ‘‘Housing Compensation and Bene2 fits’’: Provided further, That any funding made available 

3 under this heading used by the Secretary for training and 

4 other administrative expenses shall be transferred to and 

5 merged with funding provided to ‘‘Administration, Oper6 ations and Management’’ for non-personnel expenses of 

7 the Department of Housing and Urban Development: Pro8 vided further, That any funding made available under this 

9 heading used by the Secretary for technology shall be 

10 transferred to and merged with funding provided to 

11 ‘‘Working Capital Fund.’’ 

12 OFFICE OF HEALTHY HOMES AND LEAD HAZARD

13 CONTROL

14 For an additional amount for the ‘‘Lead Hazard Re15 duction’’, as authorized by section 1011 of the Residential 

16 Lead-Based Paint Hazard Reduction Act of 1992, 

17 $100,000,000, to remain available until September 30, 

18 2011: Provided, That funds shall be awarded first to appli19 cant jurisdictions which had applied under the Lead20 Based Paint Hazard Control Grant Program Notice of 

21 Funding Availability for fiscal year 2008, and were found 

22 in the application review to be qualified for award, but 

23 were not awarded because of funding limitations, and that 

24 any funds which remain after reservation of funds for such 

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1 ed under the Lead-Based Paint Hazard Control Grant 

2 Program Notice of Funding Availability for fiscal year 

3 2009: Provided further, That each applicant jurisdiction 

4 for the Lead-Based Paint Hazard control Grant Program 

5 Notice of Funding Availability for fiscal year 2009 shall 

6 submit a detailed plan and strategy that demonstrates 

7 adequate capacity that is acceptable to the Secretary to 

8 carry out the proposed use of funds: Provided further, 

9 That recipients of funds under this heading shall obligate 

10 100 percent of such funds within 1 year of the date of 

11 enactment of this Act, expend at least 75 percent of such 

12 funds within 2 years of the date on which funds become 

13 available to such jurisdictions for obligation, and expend 

14 100 percent of such funds within 3 years of such date: 

15 Provided further, That if a recipient fails to comply with 

16 either the 1-year obligation requirement or the 2-year ex17 penditure requirement, the Secretary shall recapture all 

18 remaining funds awarded to the recipient and reallocate 

19 such funds to recipients that are in compliance with those 

20 requirements: Provided further, That if a recipient fails to 

21 comply with the 3-year expenditure requirement, the Sec22 retary shall recapture the balance of the funds awarded 

23 to the recipient: Provided further, That in administering 

24 funds provided in this heading, the Secretary may waive 

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1 retary administers in connection with the obligation by the 

2 Secretary or the use by the recipient of these funds except 

3 for requirements imposed by this heading and require4 ments related to fair housing, nondiscrimination, labor 

5 standards, and the environment, upon a finding that such 

6 waiver is required to facilitate the timely use of such funds 

7 and would not be inconsistent with the overall purpose of 

8 the statute or regulation: Provided further, That, of the 

9 funds made available under this heading, up to 1 percent 

10 shall be available for staffing, training, technical assist11 ance, technology, monitoring, research and evaluation ac12 tivities: Provided further, That any funds made available 

13 under this heading used by the Secretary for personnel 

14 expenses shall be transferred to and merged with funding 

15 provided to ‘‘Personnel Compensation and Benefits, Office 

16 of Healthy Homes and Lead Hazard Control’’: Provided 

17 further, That any funds made available under this heading 

18 used by the Secretary for training or other administrative 

19 expenses shall be transferred to and merged with funding 

20 provided to ‘‘Administration, Operations, and Manage21 ment’’, for non-personnel expenses of the Department of 

22 Housing and Urban Development: Provided further, That 

23 any funds made available under this heading used by the 

24 Secretary for technology shall be transferred to and 


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1 merged with the funding provided to ‘‘Working Capital 

2 Fund’’. 

3 OFFICE OF INSPECTOR GENERAL

4 For an additional amount for the necessary salaries 

5 and expenses of the Office of Inspector General in car6 rying out the Inspector General Act of 1978, as amended, 

7 $2,750,000, to remain available until September 30, 2011: 

8 Provided, That the Inspector General shall have inde9 pendent authority over all personnel issues within this of10 fice. 

11 TITLE XIII—HEALTH 

12 INFORMATION TECHNOLOGY 

13 SEC. 1301. SHORT TITLE. 

14 This title may be cited as the ‘‘Health Information 

15 Technology for Economic and Clinical Health Act’’ or the 

16 ‘‘HITECH Act’’. 

17 Subtitle A—Promotion of Health 

18 Information Technology 

19 PART I—IMPROVING HEALTH CARE QUALITY, 

20 SAFETY, AND EFFICIENCY 

21 SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT AND 

22 ADOPTION. 

23 The Public Health Service Act (42 U.S.C. 201 et 

24 seq.) is amended by adding at the end the following: 


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1 ‘‘TITLE XXX—HEALTH INFORMA2 TION TECHNOLOGY AND 

3 QUALITY 

4 ‘‘SEC. 3000. DEFINITIONS. 

5 ‘‘In this title: 

6 ‘‘(1) CERTIFIED EHR TECHNOLOGY.—The term 

7 ‘certified EHR technology’ means a qualified elec8 tronic health record and that is certified pursuant to 

9 section 3001(c)(5) as meeting standards adopted 

10 under section 3004 that are applicable to the type 

11 of record involved (as determined by the Secretary, 

12 such as an ambulatory electronic health record for 

13 office-based physicians or an inpatient hospital elec14 tronic health record for hospitals). 

15 ‘‘(2) ENTERPRISE INTEGRATION.—The term 

16 ‘enterprise integration’ means the electronic linkage 

17 of health care providers, health plans, the govern18 ment, and other interested parties, to enable the 

19 electronic exchange and use of health information 

20 among all the components in the health care infra21 structure in accordance with applicable law, and 

22 such term includes related application protocols and 

23 other related standards. 

24 ‘‘(3) HEALTH CARE PROVIDER.—The term 

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1 ing facility, nursing facility, home health entity, or 

2 other long-term care facility, health care clinic, 

3 emergency medical services provider, Federally quali4 fied health center, group practice (as defined in sec5 tion 1877(h)(4) of the Social Security Act), a phar6 macist, a pharmacy, a laboratory, a physician (as 

7 defined in section 1861(r) of the Social Security 

8 Act), a practitioner (as described in section 

9 1842(b)(18)(C) of the Social Security Act), a pro10 vider operated by, or under contract with, the Indian 

11 Health Service or by an Indian tribe (as defined in 

12 the Indian Self-Determination and Education Assist13 ance Act), tribal organization, or urban Indian orga14 nization (as defined in section 4 of the Indian 

15 Health Care Improvement Act), a rural health clinic, 

16 a covered entity under section 340B, and any other 

17 category of facility or clinician determined appro18 priate by the Secretary. 

19 ‘‘(4) HEALTH INFORMATION.—The term ‘health 

20 information’ has the meaning given such term in 

21 section 1171(4) of the Social Security Act. 

22 ‘‘(5) HEALTH INFORMATION TECHNOLOGY.— 

23 The term ‘health information technology’ means 

24 hardware, software, integrated technologies and re25 lated licenses, intellectual property, upgrades, and 


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1 packaged solutions sold as services for use by health 

2 care entities for the electronic creation, maintenance, 

3 or exchange of health information. 

4 ‘‘(6) HEALTH PLAN.—The term ‘health plan’ 

5 has the meaning given such term in section 1171(5) 

6 of the Social Security Act. 

7 ‘‘(7) HIT POLICY COMMITTEE.—The term ‘HIT 

8 Policy Committee’ means such Committee estab9 lished under section 3002(a). 

10 ‘‘(8) HIT STANDARDS COMMITTEE.—The term 

11 ‘HIT Standards Committee’ means such Committee 

12 established under section 3003(a). 

13 ‘‘(9) INDIVIDUALLY IDENTIFIABLE HEALTH IN14 FORMATION.—The term ‘individually identifiable 

15 health information’ has the meaning given such term 

16 in section 1171(6) of the Social Security Act. 

17 ‘‘(10) LABORATORY.—The term ‘laboratory’ 

18 has the meaning given such term in section 353(a). 

19 ‘‘(11) NATIONAL COORDINATOR.—The term 

20 ‘National Coordinator’ means the head of the Office 

21 of the National Coordinator for Health Information 

22 Technology established under section 3001(a). 

23 ‘‘(12) PHARMACIST.—The term ‘pharmacist’ 

24 has the meaning given such term in section 804(2) 

25 of the Federal Food, Drug, and Cosmetic Act. 


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1 ‘‘(13) QUALIFIED ELECTRONIC HEALTH

2 RECORD.—The term ‘qualified electronic health 

3 record’ means an electronic record of health-related 

4 information on an individual that— 

5 ‘‘(A) includes patient demographic and 

6 clinical health information, such as medical his7 tory and problem lists; and 

8 ‘‘(B) has the capacity— 

9 ‘‘(i) to provide clinical decision sup10 port; 

11 ‘‘(ii) to support physician order entry; 

12 ‘‘(iii) to capture and query informa13 tion relevant to health care quality; and 

14 ‘‘(iv) to exchange electronic health in15 formation with, and integrate such infor16 mation from other sources. 

17 ‘‘(14) STATE.—The term ‘State’ means each of 

18 the several States, the District of Columbia, Puerto 

19 Rico, the Virgin Islands, Guam, American Samoa, 

20 and the Northern Mariana Islands. 


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1 ‘‘Subtitle A—Promotion of Health 

2 Information Technology 

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

4 HEALTH INFORMATION TECHNOLOGY. 

5 ‘‘(a) ESTABLISHMENT.—There is established within 

6 the Department of Health and Human Services an Office 

7 of the National Coordinator for Health Information Tech8 nology (referred to in this section as the ‘Office’). The Of9 fice shall be headed by a National Coordinator who shall 

10 be appointed by the Secretary and shall report directly to 

11 the Secretary. 

12 ‘‘(b) PURPOSE.—The National Coordinator shall per13 form the duties under subsection (c) in a manner con14 sistent with the development of a nationwide health infor15 mation technology infrastructure that allows for the elec16 tronic use and exchange of information and that— 

17 ‘‘(1) ensures that each patient’s health informa18 tion is secure and protected, in accordance with ap19 plicable law; 

20 ‘‘(2) improves health care quality, reduces med21 ical errors, and advances the delivery of patient-cen22 tered medical care; 

23 ‘‘(3) reduces health care costs resulting from 

24 inefficiency, medical errors, inappropriate care, du25 plicative care, and incomplete information; 


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1 ‘‘(4) provides appropriate information to help 

2 guide medical decisions at the time and place of 

3 care; 

4 ‘‘(5) ensures the inclusion of meaningful public 

5 input in such development of such infrastructure; 

6 ‘‘(6) improves the coordination of care and in7 formation among hospitals, laboratories, physician 

8 offices, and other entities through an effective infra9 structure for the secure and authorized exchange of 

10 health care information; 

11 ‘‘(7) improves public health activities and facili12 tates the early identification and rapid response to 

13 public health threats and emergencies, including bio14 terror events and infectious disease outbreaks; 

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

16 health care quality; 

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

18 management of chronic diseases; 

19 ‘‘(10) promotes a more effective marketplace, 

20 greater competition, greater systems analysis, in21 creased consumer choice, and improved outcomes in 

22 health care services; and 

23 ‘‘(11) improves efforts to reduce health dispari24 ties. 

25 ‘‘(c) DUTIES OF THE NATIONAL COORDINATOR.— 


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1 ‘‘(1) STANDARDS.—The National Coordinator 

2 shall review and determine whether to endorse each 

3 standard, implementation specification, and certifi4 cation criterion for the electronic exchange and use 

5 of health information that is recommended by the 

6 HIT Standards Committee under section 3003 for 

7 purposes of adoption under section 3004. The Coor8 dinator shall make such determination, and report to 

9 the Secretary such determination, not later than 45 

10 days after the date the recommendation is received 

11 by the Coordinator. 

12 ‘‘(2) HIT POLICY COORDINATION.— 

13 ‘‘(A) IN GENERAL.—The National Coordi14 nator shall coordinate health information tech15 nology policy and programs of the Department 

16 with those of other relevant executive branch 

17 agencies with a goal of avoiding duplication of 

18 efforts and of helping to ensure that each agen19 cy undertakes health information technology ac20 tivities primarily within the areas of its greatest 

21 expertise and technical capability and in a man22 ner towards a coordinated national goal. 

23 ‘‘(B) HIT POLICY AND STANDARDS COM24 MITTEES.—The National Coordinator shall be a 

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1 ations of the HIT Policy Committee and the 

2 HIT Standards Committee and shall serve as a 

3 liaison among those two Committees and the 

4 Federal Government. 

5 ‘‘(3) STRATEGIC PLAN.— 

6 ‘‘(A) IN GENERAL.—The National Coordi7 nator shall, in consultation with other appro8 priate Federal agencies (including the National 

9 Institute of Standards and Technology), update 

10 the Federal Health IT Strategic Plan (devel11 oped as of June 3, 2008) to include specific ob12 jectives, milestones, and metrics with respect to 

13 the following: 

14 ‘‘(i) The electronic exchange and use 

15 of health information and the enterprise 

16 integration of such information. 

17 ‘‘(ii) The utilization of an electronic 

18 health record for each person in the United 

19 States by 2014. 

20 ‘‘(iii) The incorporation of privacy and 

21 security protections for the electronic ex22 change of an individual’s individually iden23 tifiable health information. 

24 ‘‘(iv) Ensuring security methods to 

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1 tronic authentication of health information 

2 and specifying technologies or methodolo3 gies for rendering health information unus4 able, unreadable, or indecipherable. 

5 ‘‘(v) Specifying a framework for co6 ordination and flow of recommendations 

7 and policies under this subtitle among the 

8 Secretary, the National Coordinator, the 

9 HIT Policy Committee, the HIT Standards 

10 Committee, and other health information 

11 exchanges and other relevant entities. 

12 ‘‘(vi) Methods to foster the public un13 derstanding of health information tech14 nology. 

15 ‘‘(vii) Strategies to enhance the use of 

16 health information technology in improving 

17 the quality of health care, reducing medical 

18 errors, reducing health disparities, improv19 ing public health, increasing prevention 

20 and coordination with community re21 sources, and improving the continuity of 

22 care among health care settings. 

23 ‘‘(viii) Specific plans for ensuring that 

24 populations with unique needs, such as 

25 children, are appropriately addressed in 


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1 the technology design, as appropriate, 

2 which may include technology that 

3 automates enrollment and retention for eli4 gible individuals. 

5 ‘‘(B) COLLABORATION.—The strategic 

6 plan shall be updated through collaboration of 

7 public and private entities. 

8 ‘‘(C) MEASURABLE OUTCOME GOALS.— 

9 The strategic plan update shall include measur10 able outcome goals. 

11 ‘‘(D) PUBLICATION.—The National Coor12 dinator shall republish the strategic plan, in13 cluding all updates. 

14 ‘‘(4) WEBSITE.—The National Coordinator 

15 shall maintain and frequently update an Internet 

16 website on which there is posted information on the 

17 work, schedules, reports, recommendations, and 

18 other information to ensure transparency in pro19 motion of a nationwide health information tech20 nology infrastructure. 

21 ‘‘(5) CERTIFICATION.— 

22 ‘‘(A) IN GENERAL.—The National Coordi23 nator, in consultation with the Director of the 

24 National Institute of Standards and Tech25 nology, shall develop a program (either directly 


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1 or by contract) for the voluntary certification of 

2 health information technology as being in com3 pliance with applicable certification criteria 

4 adopted under this subtitle. Such program shall 

5 include testing of the technology in accordance 

6 with section 14201(b) of the Health Informa7 tion Technology for Economic and Clinical 

8 Health Act. 

9 ‘‘(B) CERTIFICATION CRITERIA DE10 SCRIBED.—In this title, the term ‘certification 

11 criteria’ means, with respect to standards and 

12 implementation specifications for health infor13 mation technology, criteria to establish that the 

14 technology meets such standards and implemen15 tation specifications. 

16 ‘‘(6) REPORTS AND PUBLICATIONS.— 

17 ‘‘(A) REPORT ON ADDITIONAL FUNDING

18 OR AUTHORITY NEEDED.—Not later than 12 

19 months after the date of the enactment of this 

20 title, the National Coordinator shall submit to 

21 the appropriate committees of jurisdiction of 

22 the House of Representatives and the Senate a 

23 report on any additional funding or authority 

24 the Coordinator or the HIT Policy Committee 

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1 ate and develop standards, implementation 

2 specifications, and certification criteria, or to 

3 achieve full participation of stakeholders in the 

4 adoption of a nationwide health information 

5 technology infrastructure that allows for the 

6 electronic use and exchange of health informa7 tion. 

8 ‘‘(B) IMPLEMENTATION REPORT.—The 

9 National Coordinator shall prepare a report 

10 that identifies lessons learned from major pub11 lic and private health care systems in their im12 plementation of health information technology, 

13 including information on whether the tech14 nologies and practices developed by such sys15 tems may be applicable to and usable in whole 

16 or in part by other health care providers. 

17 ‘‘(C) ASSESSMENT OF IMPACT OF HIT ON

18 COMMUNITIES WITH HEALTH DISPARITIES AND

19 UNINSURED, UNDERINSURED, AND MEDICALLY

20 UNDERSERVED AREAS.—The National Coordi21 nator shall assess and publish the impact of 

22 health information technology in communities 

23 with health disparities and in areas with a high 

24 proportion of individuals who are uninsured, 

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1 viduals (including urban and rural areas) and 

2 identify practices to increase the adoption of 

3 such technology by health care providers in 

4 such communities, and the use of health infor5 mation technology to reduce and better manage 

6 chronic diseases. 

7 ‘‘(D) EVALUATION OF BENEFITS AND

8 COSTS OF THE ELECTRONIC USE AND EX9 CHANGE OF HEALTH INFORMATION.—The Na10 tional Coordinator shall evaluate and publish 

11 evidence on the benefits and costs of the elec12 tronic use and exchange of health information 

13 and assess to whom these benefits and costs ac14 crue. 

15 ‘‘(E) RESOURCE REQUIREMENTS.—The 

16 National Coordinator shall estimate and publish 

17 resources required annually to reach the goal of 

18 utilization of an electronic health record for 

19 each person in the United States by 2014, in20 cluding the required level of Federal funding, 

21 expectations for regional, State, and private in22 vestment, and the expected contributions by vol23 unteers to activities for the utilization of such 

24 records. 


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1 ‘‘(7) ASSISTANCE.—The National Coordinator 

2 may provide financial assistance to consumer advo3 cacy groups and not-for-profit entities that work in 

4 the public interest for purposes of defraying the cost 

5 to such groups and entities to participate under, 

6 whether in whole or in part, the National Tech7 nology Transfer Act of 1995 (15 U.S.C. 272 note). 

8 ‘‘(8) GOVERNANCE FOR NATIONWIDE HEALTH

9 INFORMATION NETWORK.—The National Coordi10 nator shall establish a governance mechanism for the 

11 nationwide health information network. 

12 ‘‘(d) DETAIL OF FEDERAL EMPLOYEES.— 

13 ‘‘(1) IN GENERAL.—Upon the request of the 

14 National Coordinator, the head of any Federal agen15 cy is authorized to detail, with or without reimburse16 ment from the Office, any of the personnel of such 

17 agency to the Office to assist it in carrying out its 

18 duties under this section. 

19 ‘‘(2) EFFECT OF DETAIL.—Any detail of per20 sonnel under paragraph (1) shall— 

21 ‘‘(A) not interrupt or otherwise affect the 

22 civil service status or privileges of the Federal 

23 employee; and 


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

2 the Department employed by the National Co3 ordinator. 

4 ‘‘(3) ACCEPTANCE OF DETAILEES.—Notwith5 standing any other provision of law, the Office may 

6 accept detailed personnel from other Federal agen7 cies without regard to whether the agency described 

8 under paragraph (1) is reimbursed. 

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

10 THE NATIONAL COORDINATOR.—Not later than 12 

11 months after the date of the enactment of this title, the 

12 Secretary shall appoint a Chief Privacy Officer of the Of13 fice of the National Coordinator, whose duty it shall be 

14 to advise the National Coordinator on privacy, security, 

15 and data stewardship of electronic health information and 

16 to coordinate with other Federal agencies (and similar pri17 vacy officers in such agencies), with State and regional 

18 efforts, and with foreign countries with regard to the pri19 vacy, security, and data stewardship of electronic individ20 ually identifiable health information. 

21 ‘‘SEC. 3002. HIT POLICY COMMITTEE. 

22 ‘‘(a) ESTABLISHMENT.—There is established a HIT 

23 Policy Committee to make policy recommendations to the 

24 National Coordinator relating to the implementation of a 

25 nationwide health information technology infrastructure, 


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1 including implementation of the strategic plan described 

2 in section 3001(c)(3). 

3 ‘‘(b) DUTIES.— 

4 ‘‘(1) RECOMMENDATIONS ON HEALTH INFOR5 MATION TECHNOLOGY INFRASTRUCTURE.—The HIT 

6 Policy Committee shall recommend a policy frame7 work for the development and adoption of a nation8 wide health information technology infrastructure 

9 that permits the electronic exchange and use of 

10 health information as is consistent with the strategic 

11 plan under section 3001(c)(3) and that includes the 

12 recommendations under paragraph (2). The Com13 mittee shall update such recommendations and make 

14 new recommendations as appropriate. 

15 ‘‘(2) SPECIFIC AREAS OF STANDARD DEVELOP16 MENT.— 

17 ‘‘(A) IN GENERAL.—The HIT Policy Com18 mittee shall recommend the areas in which 

19 standards, implementation specifications, and 

20 certification criteria are needed for the elec21 tronic exchange and use of health information 

22 for purposes of adoption under section 3004 

23 and shall recommend an order of priority for 

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1 tification criteria among the areas so rec2 ommended. Such standards and implementation 

3 specifications shall include named standards, 

4 architectures, and software schemes for the au5 thentication and security of individually identifi6 able health information and other information 

7 as needed to ensure the reproducible develop8 ment of common solutions across disparate en9 tities. 

10 ‘‘(B) AREAS REQUIRED FOR CONSIDER11 ATION.—For purposes of subparagraph (A), the 

12 HIT Policy Committee shall make recommenda13 tions for at least the following areas: 

14 ‘‘(i) Technologies that protect the pri15 vacy of health information and promote se16 curity in a qualified electronic health 

17 record, including for the segmentation and 

18 protection from disclosure of specific and 

19 sensitive individually identifiable health in20 formation with the goal of minimizing the 

21 reluctance of patients to seek care (or dis22 close information about a condition) be23 cause of privacy concerns, in accordance 

24 with applicable law, and for the use and 


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1 disclosure of limited data sets of such in2 formation. 

3 ‘‘(ii) A nationwide health information 

4 technology infrastructure that allows for 

5 the electronic use and accurate exchange of 

6 health information. 

7 ‘‘(iii) The utilization of a certified 

8 electronic health record for each person in 

9 the United States by 2014. 

10 ‘‘(iv) Technologies that as a part of a 

11 qualified electronic health record allow for 

12 an accounting of disclosures made by a 

13 covered entity (as defined for purposes of 

14 regulations promulgated under section 

15 264(c) of the Health Insurance Portability 

16 and Accountability Act of 1996) for pur17 poses of treatment, payment, and health 

18 care operations (as such terms are defined 

19 for purposes of such regulations). 

20 ‘‘(v) The use of certified electronic 

21 health records to improve the quality of 

22 health care, such as by promoting the co23 ordination of health care and improving 

24 continuity of health care among health 

25 care providers, by reducing medical errors, 


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1 by improving population health, reducing 

2 chronic disease, and by advancing research 

3 and education. 

4 ‘‘(C) OTHER AREAS FOR CONSIDER5 ATION.—In making recommendations under 

6 subparagraph (A), the HIT Policy Committee 

7 may consider the following additional areas: 

8 ‘‘(i) The appropriate uses of a nation9 wide health information infrastructure, in10 cluding for purposes of— 

11 ‘‘(I) the collection of quality data 

12 and public reporting; 

13 ‘‘(II) biosurveillance and public 

14 health; 

15 ‘‘(III) medical and clinical re16 search; and 

17 ‘‘(IV) drug safety. 

18 ‘‘(ii) Self-service technologies that fa19 cilitate the use and exchange of patient in20 formation and reduce wait times. 

21 ‘‘(iii) Telemedicine technologies, in 

22 order to reduce travel requirements for pa23 tients in remote areas. 


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1 ‘‘(iv) Technologies that facilitate home 

2 health care and the monitoring of patients 

3 recuperating at home. 

4 ‘‘(v) Technologies that help reduce 

5 medical errors. 

6 ‘‘(vi) Technologies that facilitate the 

7 continuity of care among health settings. 

8 ‘‘(vii) Technologies that meet the 

9 needs of diverse populations. 

10 ‘‘(viii) Technologies and design fea11 tures that address the needs of children 

12 and other vulnerable populations. 

13 ‘‘(ix) Any other technology that the 

14 HIT Policy Committee finds to be among 

15 the technologies with the greatest potential 

16 to improve the quality and efficiency of 

17 health care. 

18 ‘‘(3) FORUM.—The HIT Policy Committee shall 

19 serve as a forum for broad stakeholder input with 

20 specific expertise in policies relating to the matters 

21 described in paragraphs (1) and (2). 

22 ‘‘(c) MEMBERSHIP AND OPERATIONS.— 

23 ‘‘(1) IN GENERAL.—The National Coordinator 

24 shall provide leadership in the establishment and op25 erations of the HIT Policy Committee. 


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1 ‘‘(2) MEMBERSHIP.—The membership of the 

2 HIT Policy Committee shall at least reflect pro3 viders, ancillary healthcare workers, consumers, pur4 chasers, health plans, technology vendors, research5 ers, relevant Federal agencies, and individuals with 

6 technical expertise on health care quality, privacy 

7 and security, and on the electronic exchange and use 

8 of health information. 

9 ‘‘(3) CONSIDERATION.—The National Coordi10 nator shall ensure that the relevant recommenda11 tions and comments from the National Committee 

12 on Vital and Health Statistics are considered in the 

13 development of policies. 

14 ‘‘(d) APPLICATION OF FACA.—The Federal Advisory 

15 Committee Act (5 U.S.C. App.), other than section 14 of 

16 such Act, shall apply to the HIT Policy Committee. 

17 ‘‘(e) PUBLICATION.—The Secretary shall provide for 

18 publication in the Federal Register and the posting on the 

19 Internet website of the Office of the National Coordinator 

20 for Health Information Technology of all policy rec21 ommendations made by the HIT Policy Committee under 

22 this section. 

23 ‘‘SEC. 3003. HIT STANDARDS COMMITTEE. 

24 ‘‘(a) ESTABLISHMENT.—There is established a com25 mittee to be known as the HIT Standards Committee to 


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1 recommend to the National Coordinator standards, imple2 mentation specifications, and certification criteria for the 

3 electronic exchange and use of health information for pur4 poses of adoption under section 3004, consistent with the 

5 implementation of the strategic plan described in section 

6 3001(c)(3) and beginning with the areas listed in section 

7 3002(b)(2)(B) in accordance with policies developed by 

8 the HIT Policy Committee. 

9 ‘‘(b) DUTIES.— 

10 ‘‘(1) STANDARD DEVELOPMENT.— 

11 ‘‘(A) IN GENERAL.—The HIT Standards 

12 Committee shall recommend to the National 

13 Coordinator standards, implementation speci14 fications, and certification criteria described in 

15 subsection (a) that have been developed, har16 monized, or recognized by the HIT Standards 

17 Committee. The HIT Standards Committee 

18 shall update such recommendations and make 

19 new recommendations as appropriate, including 

20 in response to a notification sent under section 

21 3004(b)(2). Such recommendations shall be 

22 consistent with the latest recommendations 

23 made by the HIT Policy Committee. 

24 ‘‘(B) PILOT TESTING OF STANDARDS AND

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1 velopment, harmonization, or recognition of 

2 standards and implementation specifications, 

3 the HIT Standards Committee shall, as appro4 priate, provide for the testing of such standards 

5 and specifications by the National Institute for 

6 Standards and Technology under section 14201 

7 of the Health Information Technology for Eco8 nomic and Clinical Health Act. 

9 ‘‘(C) CONSISTENCY.—The standards, im10 plementation specifications, and certification 

11 criteria recommended under this subsection 

12 shall be consistent with the standards for infor13 mation transactions and data elements adopted 

14 pursuant to section 1173 of the Social Security 

15 Act. 

16 ‘‘(2) FORUM.—The HIT Standards Committee 

17 shall serve as a forum for the participation of a 

18 broad range of stakeholders to provide input on the 

19 development, harmonization, and recognition of 

20 standards, implementation specifications, and certifi21 cation criteria necessary for the development and 

22 adoption of a nationwide health information tech23 nology infrastructure that allows for the electronic 

24 use and exchange of health information. 


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1 ‘‘(3) SCHEDULE.—Not later than 90 days after 

2 the date of the enactment of this title, the HIT 

3 Standards Committee shall develop a schedule for 

4 the assessment of policy recommendations developed 

5 by the HIT Policy Committee under section 3002. 

6 The HIT Standards Committee shall update such 

7 schedule annually. The Secretary shall publish such 

8 schedule in the Federal Register. 

9 ‘‘(4) PUBLIC INPUT.—The HIT Standards 

10 Committee shall conduct open public meetings and 

11 develop a process to allow for public comment on the 

12 schedule described in paragraph (3) and rec13 ommendations described in this subsection. Under 

14 such process comments shall be submitted in a time15 ly manner after the date of publication of a rec16 ommendation under this subsection. 

17 ‘‘(c) MEMBERSHIP AND OPERATIONS.— 

18 ‘‘(1) IN GENERAL.—The National Coordinator 

19 shall provide leadership in the establishment and op20 erations of the HIT Standards Committee. 

21 ‘‘(2) MEMBERSHIP.—The membership of the 

22 HIT Standards Committee shall at least reflect pro23 viders, ancillary healthcare workers, consumers, pur24 chasers, health plans, technology vendors, research25 ers, relevant Federal agencies, and individuals with 


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1 technical expertise on health care quality, privacy 

2 and security, and on the electronic exchange and use 

3 of health information. 

4 ‘‘(3) CONSIDERATION.—The National Coordi5 nator shall ensure that the relevant recommenda6 tions and comments from the National Committee 

7 on Vital and Health Statistics are considered in the 

8 development of standards. 

9 ‘‘(4) ASSISTANCE.—For the purposes of car10 rying out this section, the Secretary may provide or 

11 ensure that financial assistance is provided by the 

12 HIT Standards Committee to defray in whole or in 

13 part any membership fees or dues charged by such 

14 Committee to those consumer advocacy groups and 

15 not for profit entities that work in the public inter16 est as a part of their mission. 

17 ‘‘(d) APPLICATION OF FACA.—The Federal Advisory 

18 Committee Act (5 U.S.C. App.), other than section 14, 

19 shall apply to the HIT Standards Committee. 

20 ‘‘(e) PUBLICATION.—The Secretary shall provide for 

21 publication in the Federal Register and the posting on the 

22 Internet website of the Office of the National Coordinator 

23 for Health Information Technology of all recommenda24 tions made by the HIT Standards Committee under this 

25 section. 


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1 ‘‘SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED REC2 OMMENDATIONS; ADOPTION OF INITIAL SET 

3 OF STANDARDS, IMPLEMENTATION SPECI4 FICATIONS, AND CERTIFICATION CRITERIA. 

5 ‘‘(a) PROCESS FOR ADOPTION OF ENDORSED REC6 OMMENDATIONS.— 

7 ‘‘(1) REVIEW OF ENDORSED STANDARDS, IM8 PLEMENTATION SPECIFICATIONS, AND CERTIFI9 CATION CRITERIA.—Not later than 90 days after the 

10 date of receipt of standards, implementation speci11 fications, or certification criteria endorsed under sec12 tion 3001(c), the Secretary, in consultation with rep13 resentatives of other relevant Federal agencies, shall 

14 jointly review such standards, implementation speci15 fications, or certification criteria and shall determine 

16 whether or not to propose adoption of such stand17 ards, implementation specifications, or certification 

18 criteria. 

19 ‘‘(2) DETERMINATION TO ADOPT STANDARDS, 

20 IMPLEMENTATION SPECIFICATIONS, AND CERTIFI21 CATION CRITERIA.—If the Secretary determines— 

22 ‘‘(A) to propose adoption of any grouping 

23 of such standards, implementation specifica24 tions, or certification criteria, the Secretary 

25 shall, by regulation, determine whether or not 


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1 to adopt such grouping of standards, implemen2 tation specifications, or certification criteria; or 

3 ‘‘(B) not to propose adoption of any group4 ing of standards, implementation specifications, 

5 or certification criteria, the Secretary shall no6 tify the National Coordinator and the HIT 

7 Standards Committee in writing of such deter8 mination and the reasons for not proposing the 

9 adoption of such recommendation. 

10 ‘‘(3) PUBLICATION.—The Secretary shall pro11 vide for publication in the Federal Register of all de12 terminations made by the Secretary under para13 graph (1). 

14 ‘‘(b) ADOPTION OF INITIAL SET OF STANDARDS, IM15 PLEMENTATION SPECIFICATIONS, AND CERTIFICATION

16 CRITERIA.— 

17 ‘‘(1) IN GENERAL.—Not later than December 

18 31, 2009, the Secretary shall, through the rule19 making process described in section 3003, adopt an 

20 initial set of standards, implementation specifica21 tions, and certification criteria for the areas required 

22 for consideration under section 3002(b)(2)(B). 

23 ‘‘(2) APPLICATION OF CURRENT STANDARDS, 

24 IMPLEMENTATION SPECIFICATIONS, AND CERTIFI25 CATION CRITERIA.—The standards, implementation 


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1 specifications, and certification criteria adopted be2 fore the date of the enactment of this title through 

3 the process existing through the Office of the Na4 tional Coordinator for Health Information Tech5 nology may be applied towards meeting the require6 ment of paragraph (1). 

7 ‘‘SEC. 3005. APPLICATION AND USE OF ADOPTED STAND8 ARDS AND IMPLEMENTATION SPECIFICA9 TIONS BY FEDERAL AGENCIES. 

10 ‘‘For requirements relating to the application and use 

11 by Federal agencies of the standards and implementation 

12 specifications adopted under section 3004, see section 

13 13111 of the Health Information Technology for Eco14 nomic and Clinical Health Act. 

15 ‘‘SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPT16 ED STANDARDS AND IMPLEMENTATION 

17 SPECIFICATIONS BY PRIVATE ENTITIES. 

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

19 13112 of the Health Information Technology for Eco20 nomic and Clinical Health Act, any standard or implemen21 tation specification adopted under section 3004 shall be 

22 voluntary with respect to private entities. 

23 ‘‘(b) RULE OF CONSTRUCTION.—Nothing in this sub24 title shall be construed to require that a private entity that 

25 enters into a contract with the Federal Government apply 


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1 or use the standards and implementation specifications 

2 adopted under section 3004 with respect to activities not 

3 related to the contract. 

4 ‘‘SEC. 3007. FEDERAL HEALTH INFORMATION TECH5 NOLOGY. 

6 ‘‘(a) IN GENERAL.—The National Coordinator shall 

7 support the development, routine updating and provision 

8 of qualified EHR technology (as defined in section 3000) 

9 consistent with subsections (b) and (c) unless the Sec10 retary determines that the needs and demands of pro11 viders are being substantially and adequately met through 

12 the marketplace. 

13 ‘‘(b) CERTIFICATION.—In making such EHR tech14 nology publicly available, the National Coordinator shall 

15 ensure that the qualified EHR technology described in 

16 subsection (a) is certified under the program developed 

17 under section 3001(c)(3) to be in compliance with applica18 ble standards adopted under section 3003(a). 

19 ‘‘(c) AUTHORIZATION TO CHARGE A NOMINAL

20 FEE.—The National Coordinator may impose a nominal 

21 fee for the adoption by a health care provider of the health 

22 information technology system developed or approved 

23 under subsection (a) and (b). Such fee shall take into ac24 count the financial circumstances of smaller providers, low 


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1 income providers, and providers located in rural or other 

2 medically underserved areas. 

3 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec4 tion shall be construed to require that a private or govern5 ment entity adopt or use the technology provided under 

6 this section. 

7 ‘‘SEC. 3008. TRANSITIONS. 

8 ‘‘(a) ONCHIT.—To the extent consistent with sec9 tion 3001, all functions, personnel, assets, liabilities, and 

10 administrative actions applicable to the National Coordi11 nator for Health Information Technology appointed under 

12 Executive Order 13335 or the Office of such National Co13 ordinator on the date before the date of the enactment 

14 of this title shall be transferred to the National Coordi15 nator appointed under section 3001(a) and the Office of 

16 such National Coordinator as of the date of the enactment 

17 of this title. 

18 ‘‘(b) AHIC.— 

19 ‘‘(1) To the extent consistent with sections 

20 3002 and 3003, all functions, personnel, assets, and 

21 liabilities applicable to the AHIC Successor, Inc. 

22 doing business as the National eHealth Collaborative 

23 as of the day before the date of the enactment of 

24 this title shall be transferred to the HIT Policy 

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1 lished under section 3002(a) or 3003(a), as appro2 priate, as of the date of the enactment of this title. 

3 ‘‘(2) In carrying out section 3003(b)(1)(A), 

4 until recommendations are made by the HIT Policy 

5 Committee, recommendations of the HIT Standards 

6 Committee shall be consistent with the most recent 

7 recommendations made by such AHIC Successor, 

8 Inc. 

9 ‘‘(c) RULES OF CONSTRUCTION.— 

10 ‘‘(1) ONCHIT.—Nothing in section 3001 or 

11 subsection (a) shall be construed as requiring the 

12 creation of a new entity to the extent that the Office 

13 of the National Coordinator for Health Information 

14 Technology established pursuant to Executive Order 

15 13335 is consistent with the provisions of section 

16 3001. 

17 ‘‘(2) AHIC.—Nothing in sections 3002 or 3003 

18 or subsection (b) shall be construed as prohibiting 

19 the AHIC Successor, Inc. doing business as the Na20 tional eHealth Collaborative from modifying its char21 ter, duties, membership, and any other structure or 

22 function required to be consistent with section 3002 

23 and 3003 in a manner that would permit the Sec24 retary to choose to recognize such AHIC Successor, 


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1 Inc. as the HIT Policy Committee or the HIT 

2 Standards Committee. 

3 ‘‘SEC. 3009. RELATION TO HIPAA PRIVACY AND SECURITY 

4 LAW. 

5 ‘‘(a) IN GENERAL.—With respect to the relation of 

6 this title to HIPAA privacy and security law: 

7 ‘‘(1) This title may not be construed as having 

8 any effect on the authorities of the Secretary under 

9 HIPAA privacy and security law. 

10 ‘‘(2) The purposes of this title include ensuring 

11 that the health information technology standards 

12 and implementation specifications adopted under 

13 section 3004 take into account the requirements of 

14 HIPAA privacy and security law. 

15 ‘‘(b) DEFINITION.—For purposes of this section, the 

16 term ‘HIPAA privacy and security law’ means— 

17 ‘‘(1) the provisions of part C of title XI of the 

18 Social Security Act, section 264 of the Health Insur19 ance Portability and Accountability Act of 1996, and 

20 subtitle D of the Health Information Technology for 

21 Economic and Clinical Health Act; and 

22 ‘‘(2) regulations under such provisions.’’. 


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1 SEC. 13102. TECHNICAL AMENDMENT. 

2 Section 1171(5) of the Social Security Act (42 U.S.C. 

3 1320d) is amended by striking ‘‘or C’’ and inserting ‘‘C, 

4 or D’’. 

5 PART II—APPLICATION AND USE OF ADOPTED 

6 HEALTH INFORMATION TECHNOLOGY 

7 STANDARDS; REPORTS 

8 SEC. 13111. COORDINATION OF FEDERAL ACTIVITIES WITH 

9 ADOPTED STANDARDS AND IMPLEMENTA10 TION SPECIFICATIONS. 

11 (a) SPENDING ON HEALTH INFORMATION TECH12 NOLOGY SYSTEMS.—As each agency (as defined in the Ex13 ecutive Order issued on August 22, 2006, relating to pro14 moting quality and efficient health care in Federal govern15 ment administered or sponsored health care programs) im16 plements, acquires, or upgrades health information tech17 nology systems used for the direct exchange of individually 

18 identifiable health information between agencies and with 

19 non-Federal entities, it shall utilize, where available, 

20 health information technology systems and products that 

21 meet standards and implementation specifications adopted 

22 under section 3004(b) of the Public Health Service Act, 

23 as added by section 13101. 

24 (b) FEDERAL INFORMATION COLLECTION ACTIVI25 TIES.—With respect to a standard or implementation 

26 specification adopted under section 3004(b) of the Public 


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1 Health Service Act, as added by section 13101, the Presi2 dent shall take measures to ensure that Federal activities 

3 involving the broad collection and submission of health in4 formation are consistent with such standard or implemen5 tation specification, respectively, within three years after 

6 the date of such adoption. 

7 (c) APPLICATION OF DEFINITIONS.—The definitions 

8 contained in section 3000 of the Public Health Service 

9 Act, as added by section 13101, shall apply for purposes 

10 of this part. 

11 SEC. 13112. APPLICATION TO PRIVATE ENTITIES. 

12 Each agency (as defined in such Executive Order 

13 issued on August 22, 2006, relating to promoting quality 

14 and efficient health care in Federal government adminis15 tered or sponsored health care programs) shall require in 

16 contracts or agreements with health care providers, health 

17 plans, or health insurance issuers that as each provider, 

18 plan, or issuer implements, acquires, or upgrades health 

19 information technology systems, it shall utilize, where 

20 available, health information technology systems and prod21 ucts that meet standards and implementation specifica22 tions adopted under section 3004(b) of the Public Health 

23 Service Act, as added by section 13101. 


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1 SEC. 13113. STUDY AND REPORTS. 

2 (a) REPORT ON ADOPTION OF NATIONWIDE SYS3 TEM.—Not later than 2 years after the date of the enact4 ment of this Act and annually thereafter, the Secretary 

5 of Health and Human Services shall submit to the appro6 priate committees of jurisdiction of the House of Rep7 resentatives and the Senate a report that— 

8 (1) describes the specific actions that have been 

9 taken by the Federal Government and private enti10 ties to facilitate the adoption of a nationwide system 

11 for the electronic use and exchange of health infor12 mation; 

13 (2) describes barriers to the adoption of such a 

14 nationwide system; and 

15 (3) contains recommendations to achieve full 

16 implementation of such a nationwide system. 

17 (b) REIMBURSEMENT INCENTIVE STUDY AND RE18 PORT.— 

19 (1) STUDY.—The Secretary of Health and 

20 Human Services shall carry out, or contract with a 

21 private entity to carry out, a study that examines 

22 methods to create efficient reimbursement incentives 

23 for improving health care quality in Federally quali24 fied health centers, rural health clinics, and free 

25 clinics. 


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1 (2) REPORT.—Not later than 2 years after the 

2 date of the enactment of this Act, the Secretary of 

3 Health and Human Services shall submit to the ap4 propriate committees of jurisdiction of the House of 

5 Representatives and the Senate a report on the 

6 study carried out under paragraph (1). 

7 (c) AGING SERVICES TECHNOLOGY STUDY AND RE8 PORT.— 

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

10 Human Services shall carry out, or contract with a 

11 private entity to carry out, a study of matters relat12 ing to the potential use of new aging services tech13 nology to assist seniors, individuals with disabilities, 

14 and their caregivers throughout the aging process. 

15 (2) MATTERS TO BE STUDIED.—The study 

16 under paragraph (1) shall include— 

17 (A) an evaluation of— 

18 (i) methods for identifying current, 

19 emerging, and future health technology 

20 that can be used to meet the needs of sen21 iors and individuals with disabilities and 

22 their caregivers across all aging services 

23 settings, as specified by the Secretary; 

24 (ii) methods for fostering scientific in25 novation with respect to aging services 


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1 technology within the business and aca2 demic communities; and 

3 (iii) developments in aging services 

4 technology in other countries that may be 

5 applied in the United States; and 

6 (B) identification of— 

7 (i) barriers to innovation in aging 

8 services technology and devising strategies 

9 for removing such barriers; and 

10 (ii) barriers to the adoption of aging 

11 services technology by health care pro12 viders and consumers and devising strate13 gies to removing such barriers. 

14 (3) REPORT.—Not later than 24 months after 

15 the date of the enactment of this Act, the Secretary 

16 shall submit to the appropriate committees of juris17 diction of the House of Representatives and of the 

18 Senate a report on the study carried out under para19 graph (1). 

20 (4) DEFINITIONS.—For purposes of this sub21 section: 

22 (A) AGING SERVICES TECHNOLOGY.—The 

23 term ‘‘aging services technology’’ means health 

24 technology that meets the health care needs of 


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1 seniors, individuals with disabilities, and the 

2 caregivers of such seniors and individuals. 

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

4 meaning as specified by the Secretary. 

5 Subtitle B—Testing of Health 

6 Information Technology 

7 SEC. 13201. NATIONAL INSTITUTE FOR STANDARDS AND 

8 TECHNOLOGY TESTING. 

9 (a) PILOT TESTING OF STANDARDS AND IMPLEMEN10 TATION SPECIFICATIONS.—In coordination with the HIT 

11 Standards Committee established under section 3003 of 

12 the Public Health Service Act, as added by section 13101, 

13 with respect to the development of standards and imple14 mentation specifications under such section, the Director 

15 of the National Institute for Standards and Technology 

16 shall test such standards and implementation specifica17 tions, as appropriate, in order to assure the efficient im18 plementation and use of such standards and implementa19 tion specifications. 

20 (b) VOLUNTARY TESTING PROGRAM.—In coordina21 tion with the HIT Standards Committee established under 

22 section 3003 of the Public Health Service Act, as added 

23 by section 13101, with respect to the development of 

24 standards and implementation specifications under such 

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1 ards and Technology shall support the establishment of 

2 a conformance testing infrastructure, including the devel3 opment of technical test beds. The development of this 

4 conformance testing infrastructure may include a program 

5 to accredit independent, non-Federal laboratories to per6 form testing. 

7 SEC. 13202. RESEARCH AND DEVELOPMENT PROGRAMS. 

8 (a) HEALTH CARE INFORMATION ENTERPRISE INTE9 GRATION RESEARCH CENTERS.— 

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

11 Institute of Standards and Technology, in consulta12 tion with the Director of the National Science Foun13 dation and other appropriate Federal agencies, shall 

14 establish a program of assistance to institutions of 

15 higher education (or consortia thereof which may in16 clude nonprofit entities and Federal Government 

17 laboratories) to establish multidisciplinary Centers 

18 for Health Care Information Enterprise Integration. 

19 (2) REVIEW; COMPETITION.—Grants shall be 

20 awarded under this subsection on a merit-reviewed, 

21 competitive basis. 

22 (3) PURPOSE.—The purposes of the Centers de23 scribed in paragraph (1) shall be— 

24 (A) to generate innovative approaches to 

25 health care information enterprise integration 


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1 by conducting cutting-edge, multidisciplinary 

2 research on the systems challenges to health 

3 care delivery; and 

4 (B) the development and use of health in5 formation technologies and other complemen6 tary fields. 

7 (4) RESEARCH AREAS.—Research areas may in8 clude— 

9 (A) interfaces between human information 

10 and communications technology systems; 

11 (B) voice-recognition systems; 

12 (C) software that improves interoperability 

13 and connectivity among health information sys14 tems; 

15 (D) software dependability in systems crit16 ical to health care delivery; 

17 (E) measurement of the impact of informa18 tion technologies on the quality and productivity 

19 of health care; 

20 (F) health information enterprise manage21 ment; 

22 (G) health information technology security 

23 and integrity; and 

24 (H) relevant health information technology 

25 to reduce medical errors. 


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1 (5) APPLICATIONS.—An institution of higher 

2 education (or a consortium thereof) seeking funding 

3 under this subsection shall submit an application to 

4 the Director of the National Institute of Standards 

5 and Technology at such time, in such manner, and 

6 containing such information as the Director may re7 quire. The application shall include, at a minimum, 

8 a description of— 

9 (A) the research projects that will be un10 dertaken by the Center established pursuant to 

11 assistance under paragraph (1) and the respec12 tive contributions of the participating entities; 

13 (B) how the Center will promote active col14 laboration among scientists and engineers from 

15 different disciplines, such as information tech16 nology, biologic sciences, management, social 

17 sciences, and other appropriate disciplines; 

18 (C) technology transfer activities to dem19 onstrate and diffuse the research results, tech20 nologies, and knowledge; and 

21 (D) how the Center will contribute to the 

22 education and training of researchers and other 

23 professionals in fields relevant to health infor24 mation enterprise integration. 


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1 (b) NATIONAL INFORMATION TECHNOLOGY RE2 SEARCH AND DEVELOPMENT PROGRAM.—The National 

3 High-Performance Computing Program established by 

4 section 101 of the High-Performance Computing Act of 

5 1991 (15 U.S.C. 5511) shall coordinate Federal research 

6 and development programs related to the development and 

7 deployment of health information technology, including ac8 tivities related to— 

9 (1) computer infrastructure; 

10 (2) data security; 

11 (3) development of large-scale, distributed, reli12 able computing systems; 

13 (4) wired, wireless, and hybrid high-speed net14 working; 

15 (5) development of software and software-inten16 sive systems; 

17 (6) human-computer interaction and informa18 tion management technologies; and 

19 (7) the social and economic implications of in20 formation technology. 


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1 Subtitle C—Incentives for the Use 

2 of Health Information Technology 

3 PART I—GRANTS AND LOANS FUNDING 

4 SEC. 13301. GRANT, LOAN, AND DEMONSTRATION PRO5 GRAMS. 

6 Title XXX of the Public Health Service Act, as added 

7 by section 13101, is amended by adding at the end the 

8 following new subtitle: 

9 ‘‘Subtitle B—Incentives for the Use 

10 of Health Information Technology 

11 ‘‘SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE 

12 HEALTH INFORMATION TECHNOLOGY INFRA13 STRUCTURE. 

14 ‘‘(a) IN GENERAL.—The Secretary of Health and 

15 Human Services shall, using amounts appropriated under 

16 section 3018, invest in the infrastructure necessary to 

17 allow for and promote the electronic exchange and use of 

18 health information for each individual in the United States 

19 consistent with the goals outlined in the strategic plan de20 veloped by the National Coordinator (and, as available) 

21 under section 3001. To the greatest extent practicable, the 

22 Secretary shall ensure that any funds so appropriated 

23 shall be used for the acquisition of health information 

24 technology that meets standards and certification criteria 

25 adopted before the date of the enactment of this title until 


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1 such date as the standards are adopted under section 

2 3004. The Secretary shall invest funds through the dif3 ferent agencies with expertise in such goals, such as the 

4 Office of the National Coordinator for Health Information 

5 Technology, the Health Resources and Services Adminis6 tration, the Agency for Healthcare Research and Quality, 

7 the Centers of Medicare & Medicaid Services, the Centers 

8 for Disease Control and Prevention, and the Indian 

9 Health Service to support the following: 

10 ‘‘(1) Health information technology architecture 

11 that will support the nationwide electronic exchange 

12 and use of health information in a secure, private, 

13 and accurate manner, including connecting health 

14 information exchanges, and which may include up15 dating and implementing the infrastructure nec16 essary within different agencies of the Department 

17 of Health and Human Services to support the elec18 tronic use and exchange of health information. 

19 ‘‘(2) Development and adoption of appropriate 

20 certified electronic health records for categories of 

21 providers not eligible for support under title XVIII 

22 or XIX of the Social Security Act for the adoption 

23 of such records. 

24 ‘‘(3) Training on and dissemination of informa25 tion on best practices to integrate health information 


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1 technology, including electronic health records, into 

2 a provider’s delivery of care, consistent with best 

3 practices learned from the Health Information Tech4 nology Research Center developed under section 

5 3012, including community health centers receiving 

6 assistance under section 330 of the Public Health 

7 Service Act, covered entities under section 340B of 

8 such Act, and providers participating in one or more 

9 of the programs under titles XVIII, XIX, and XXI 

10 of the Social Security Act (relating to Medicare, 

11 Medicaid, and the State Children’s Health Insurance 

12 Program). 

13 ‘‘(4) Infrastructure and tools for the promotion 

14 of telemedicine, including coordination among Fed15 eral agencies in the promotion of telemedicine. 

16 ‘‘(5) Promotion of the interoperability of clinical 

17 data repositories or registries. 

18 ‘‘(6) Promotion of technologies and best prac19 tices that enhance the protection of health informa20 tion by all holders of individually identifiable health 

21 information. 

22 ‘‘(7) Improve and expand the use of health in23 formation technology by public health departments. 


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1 ‘‘(8) Provide $300,000,000 to support regional 

2 or sub-national efforts towards health information 

3 exchange. 

4 ‘‘(b) COORDINATION.—The Secretary shall ensure 

5 funds under this section are used in a coordinated manner 

6 with other health information promotion activities. 

7 ‘‘(c) ADDITIONAL USE OF FUNDS.—In addition to 

8 using funds as provided in subsection (a), the Secretary 

9 may use amounts appropriated under section 3018 to 

10 carry out activities that are provided for under laws in 

11 effect on the date of enactment of this title. 

12 ‘‘SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLE13 MENTATION ASSISTANCE. 

14 ‘‘(a) HEALTH INFORMATION TECHNOLOGY EXTEN15 SION PROGRAM.—To assist health care providers to adopt, 

16 implement, and effectively use certified EHR technology 

17 that allows for the electronic exchange and use of health 

18 information, the Secretary, acting through the Office of 

19 the National Coordinator, shall establish a health informa20 tion technology extension program to provide health infor21 mation technology assistance services to be carried out 

22 through the Department of Health and Human Services. 

23 The National Coordinator shall consult with other Federal 

24 agencies with demonstrated experience and expertise in in25 formation technology services, such as the National InstiVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00309 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 tute of Standards and Technology, in developing and im2 plementing this program. 

3 ‘‘(b) HEALTH INFORMATION TECHNOLOGY RE4 SEARCH CENTER.— 

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

6 a Health Information Technology Research Center 

7 (in this section referred to as the ‘Center’) to pro8 vide technical assistance and develop or recognize 

9 best practices to support and accelerate efforts to 

10 adopt, implement, and effectively utilize health infor11 mation technology that allows for the electronic ex12 change and use of information in compliance with 

13 standards, implementation specifications, and certifi14 cation criteria adopted under section 3004(b). 

15 ‘‘(2) INPUT.—The Center shall incorporate 

16 input from— 

17 ‘‘(A) other Federal agencies with dem18 onstrated experience and expertise in informa19 tion technology services such as the National 

20 Institute of Standards and Technology; 

21 ‘‘(B) users of health information tech22 nology, such as providers and their support and 

23 clerical staff and others involved in the care and 

24 care coordination of patients, from the health 


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1 care and health information technology indus2 try; and 

3 ‘‘(C) others as appropriate. 

4 ‘‘(3) PURPOSES.—The purposes of the Center 

5 are to— 

6 ‘‘(A) provide a forum for the exchange of 

7 knowledge and experience; 

8 ‘‘(B) accelerate the transfer of lessons 

9 learned from existing public and private sector 

10 initiatives, including those currently receiving 

11 Federal financial support; 

12 ‘‘(C) assemble, analyze, and widely dis13 seminate evidence and experience related to the 

14 adoption, implementation, and effective use of 

15 health information technology that allows for 

16 the electronic exchange and use of information 

17 including through the regional centers described 

18 in subsection (c); 

19 ‘‘(D) provide technical assistance for the 

20 establishment and evaluation of regional and 

21 local health information networks to facilitate 

22 the electronic exchange of information across 

23 health care settings and improve the quality of 

24 health care; 


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1 ‘‘(E) provide technical assistance for the 

2 development and dissemination of solutions to 

3 barriers to the exchange of electronic health in4 formation; and 

5 ‘‘(F) learn about effective strategies to 

6 adopt and utilize health information technology 

7 in medically underserved communities. 

8 ‘‘(c) HEALTH INFORMATION TECHNOLOGY RE9 GIONAL EXTENSION CENTERS.— 

10 ‘‘(1) IN GENERAL.—The Secretary shall provide 

11 assistance for the creation and support of regional 

12 centers (in this subsection referred to as ‘regional 

13 centers’) to provide technical assistance and dissemi14 nate best practices and other information learned 

15 from the Center to support and accelerate efforts to 

16 adopt, implement, and effectively utilize health infor17 mation technology that allows for the electronic ex18 change and use of information in compliance with 

19 standards, implementation specifications, and certifi20 cation criteria adopted under section 3004. Activities 

21 conducted under this subsection shall be consistent 

22 with the strategic plan developed by the National 

23 Coordinator (and, as available) under section 3001. 

24 ‘‘(2) AFFILIATION.—Regional centers shall be 

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1 stitution or organization, or group thereof, that ap2 plies and is awarded financial assistance under this 

3 section. Individual awards shall be decided on the 

4 basis of merit. 

5 ‘‘(3) OBJECTIVE.—The objective of the regional 

6 centers is to enhance and promote the adoption of 

7 health information technology through— 

8 ‘‘(A) assistance with the implementation, 

9 effective use, upgrading, and ongoing mainte10 nance of health information technology, includ11 ing electronic health records, to healthcare pro12 viders nationwide; 

13 ‘‘(B) broad participation of individuals 

14 from industry, universities, and State govern15 ments; 

16 ‘‘(C) active dissemination of best practices 

17 and research on the implementation, effective 

18 use, upgrading, and ongoing maintenance of 

19 health information technology, including elec20 tronic health records, to health care providers 

21 in order to improve the quality of healthcare 

22 and protect the privacy and security of health 

23 information; 

24 ‘‘(D) participation, to the extent prac25 ticable, in health information exchanges; 


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1 ‘‘(E) utilization, when appropriate, of the 

2 expertise and capability that exists in federal 

3 agencies other than the Department; and 

4 ‘‘(F) integration of health information 

5 technology, including electronic health records, 

6 into the initial and ongoing training of health 

7 professionals and others in the healthcare in8 dustry that would be instrumental to improving 

9 the quality of healthcare through the smooth 

10 and accurate electronic use and exchange of 

11 health information. 

12 ‘‘(4) REGIONAL ASSISTANCE.—Each regional 

13 center shall aim to provide assistance and education 

14 to all providers in a region, but shall prioritize any 

15 direct assistance first to the following: 

16 ‘‘(A) Public or not-for-profit hospitals or 

17 critical access hospitals. 

18 ‘‘(B) Federally qualified health centers (as 

19 defined in section 1861(aa)(4) of the Social Se20 curity Act). 

21 ‘‘(C) Entities that are located in rural and 

22 other areas that serve uninsured, underinsured, 

23 and medically underserved individuals (regard24 less of whether such area is urban or rural). 


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1 ‘‘(D) Individual or small group practices 

2 (or a consortium thereof) that are primarily fo3 cused on primary care. 

4 ‘‘(5) FINANCIAL SUPPORT.—The Secretary may 

5 provide financial support to any regional center cre6 ated under this subsection for a period not to exceed 

7 four years. The Secretary may not provide more 

8 than 50 percent of the capital and annual operating 

9 and maintenance funds required to create and main10 tain such a center, except in an instance of national 

11 economic conditions which would render this cost12 share requirement detrimental to the program and 

13 upon notification to Congress as to the justification 

14 to waive the cost-share requirement. 

15 ‘‘(6) NOTICE OF PROGRAM DESCRIPTION AND

16 AVAILABILITY OF FUNDS.—The Secretary shall pub17 lish in the Federal Register, not later than 90 days 

18 after the date of the enactment of this Act, a draft 

19 description of the program for establishing regional 

20 centers under this subsection. Such description shall 

21 include the following: 

22 ‘‘(A) A detailed explanation of the program 

23 and the programs goals. 

24 ‘‘(B) Procedures to be followed by the ap25 plicants. 


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1 ‘‘(C) Criteria for determining qualified ap2 plicants. 

3 ‘‘(D) Maximum support levels expected to 

4 be available to centers under the program. 

5 ‘‘(7) APPLICATION REVIEW.—The Secretary 

6 shall subject each application under this subsection 

7 to merit review. In making a decision whether to ap8 prove such application and provide financial support, 

9 the Secretary shall consider at a minimum the mer10 its of the application, including those portions of the 

11 application regarding— 

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

13 assistance under this subsection and utilization 

14 of health information technology appropriate to 

15 the needs of particular categories of health care 

16 providers; 

17 ‘‘(B) the types of service to be provided to 

18 health care providers; 

19 ‘‘(C) geographical diversity and extent of 

20 service area; and 

21 ‘‘(D) the percentage of funding and 

22 amount of in-kind commitment from other 

23 sources. 

24 ‘‘(8) BIENNIAL EVALUATION.—Each regional 

25 center which receives financial assistance under this 


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1 subsection shall be evaluated biennially by an evalua2 tion panel appointed by the Secretary. Each evalua3 tion panel shall be composed of private experts, none 

4 of whom shall be connected with the center involved, 

5 and of Federal officials. Each evaluation panel shall 

6 measure the involved center’s performance against 

7 the objective specified in paragraph (3). The Sec8 retary shall not continue to provide funding to a re9 gional center unless its evaluation is overall positive. 

10 ‘‘(9) CONTINUING SUPPORT.—After the second 

11 year of assistance under this subsection a regional 

12 center may receive additional support under this 

13 subsection if it has received positive evaluations and 

14 a finding by the Secretary that continuation of Fed15 eral funding to the center was in the best interest 

16 of provision of health information technology exten17 sion services. 

18 ‘‘SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFOR19 MATION TECHNOLOGY. 

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

21 the National Coordinator, shall establish a program in ac22 cordance with this section to facilitate and expand the 

23 electronic movement and use of health information among 

24 organizations according to nationally recognized stand25 ards. 


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

2 a grant to a State or qualified State-designated entity (as 

3 described in subsection (d)) that submits an application 

4 to the Secretary at such time, in such manner, and con5 taining such information as the Secretary may specify, for 

6 the purpose of planning activities described in subsection 

7 (b). 

8 ‘‘(c) IMPLEMENTATION GRANTS.—The Secretary 

9 may award a grant to a State or qualified State designated 

10 entity that— 

11 ‘‘(1) has submitted, and the Secretary has ap12 proved, a plan described in subsection (c) (regardless 

13 of whether such plan was prepared using amounts 

14 awarded under paragraph (1)); and 

15 ‘‘(2) submits an application at such time, in 

16 such manner, and containing such information as 

17 the Secretary may specify. 

18 ‘‘(d) USE OF FUNDS.—Amounts received under a 

19 grant under subsection (a)(3) shall be used to conduct ac20 tivities to facilitate and expand the electronic movement 

21 and use of health information among organizations ac22 cording to nationally recognized standards through activi23 ties that include— 


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1 ‘‘(1) enhancing broad and varied participation 

2 in the authorized and secure nationwide electronic 

3 use and exchange of health information; 

4 ‘‘(2) identifying State or local resources avail5 able towards a nationwide effort to promote health 

6 information technology; 

7 ‘‘(3) complementing other Federal grants, pro8 grams, and efforts towards the promotion of health 

9 information technology; 

10 ‘‘(4) providing technical assistance for the de11 velopment and dissemination of solutions to barriers 

12 to the exchange of electronic health information; 

13 ‘‘(5) promoting effective strategies to adopt and 

14 utilize health information technology in medically 

15 underserved communities; 

16 ‘‘(6) assisting patients in utilizing health infor17 mation technology; 

18 ‘‘(7) encouraging clinicians to work with Health 

19 Information Technology Regional Extension Centers 

20 as described in section 3012, to the extent they are 

21 available and valuable; 

22 ‘‘(8) supporting public health agencies’ author23 ized use of and access to electronic health informa24 tion; 


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1 ‘‘(9) promoting the use of electronic health 

2 records for quality improvement including through 

3 quality measures reporting; and 

4 ‘‘(10) such other activities as the Secretary may 

5 specify. 

6 ‘‘(e) PLAN.— 

7 ‘‘(1) IN GENERAL.—A plan described in this 

8 subsection is a plan that describes the activities to 

9 be carried out by a State or by the qualified State10 designated entity within such State to facilitate and 

11 expand the electronic movement and use of health 

12 information among organizations according to na13 tionally recognized standards and implementation 

14 specifications. 

15 ‘‘(2) REQUIRED ELEMENTS.—A plan described 

16 in paragraph (1) shall— 

17 ‘‘(A) be pursued in the public interest; 

18 ‘‘(B) be consistent with the strategic plan 

19 developed by the National Coordinator (and, as 

20 available) under section 3001; 

21 ‘‘(C) include a description of the ways the 

22 State or qualified State-designated entity will 

23 carry out the activities described in subsection 

24 (b); and 


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1 ‘‘(D) contain such elements as the Sec2 retary may require. 

3 ‘‘(f) QUALIFIED STATE-DESIGNATED ENTITY.—For 

4 purposes of this section, to be a qualified State-designated 

5 entity, with respect to a State, an entity shall— 

6 ‘‘(1) be designated by the State as eligible to 

7 receive awards under this section; 

8 ‘‘(2) be a not-for-profit entity with broad stake9 holder representation on its governing board; 

10 ‘‘(3) demonstrate that one of its principal goals 

11 is to use information technology to improve health 

12 care quality and efficiency through the authorized 

13 and secure electronic exchange and use of health in14 formation; 

15 ‘‘(4) adopt nondiscrimination and conflict of in16 terest policies that demonstrate a commitment to 

17 open, fair, and nondiscriminatory participation by 

18 stakeholders; and 

19 ‘‘(5) conform to such other requirements as the 

20 Secretary may establish. 

21 ‘‘(g) REQUIRED CONSULTATION.—In carrying out 

22 activities described in subsections (a)(2) and (a)(3), a 

23 State or qualified State-designated entity shall consult 

24 with and consider the recommendations of— 


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

2 that provide services to low income and underserved 

3 populations); 

4 ‘‘(2) health plans; 

5 ‘‘(3) patient or consumer organizations that 

6 represent the population to be served; 

7 ‘‘(4) health information technology vendors; 

8 ‘‘(5) health care purchasers and employers; 

9 ‘‘(6) public health agencies; 

10 ‘‘(7) health professions schools, universities and 

11 colleges; 

12 ‘‘(8) clinical researchers; 

13 ‘‘(9) other users of health information tech14 nology such as the support and clerical staff of pro15 viders and others involved in the care and care co16 ordination of patients; and 

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

18 appropriate by the Secretary. 

19 ‘‘(h) CONTINUOUS IMPROVEMENT.—The Secretary 

20 shall annually evaluate the activities conducted under this 

21 section and shall, in awarding grants under this section, 

22 implement the lessons learned from such evaluation in a 

23 manner so that awards made subsequent to each such 

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1 provement in quality of care, decrease in costs, and the 

2 most effective authorized and secure electronic exchange 

3 of health information. 

4 ‘‘(i) REQUIRED MATCH.— 

5 ‘‘(1) IN GENERAL.—For a fiscal year (begin6 ning with fiscal year 2011), the Secretary may not 

7 make a grant under subsection (a) to a State unless 

8 the State agrees to make available non-Federal con9 tributions (which may include in-kind contributions) 

10 toward the costs of a grant awarded under sub11 section (a)(3) in an amount equal to— 

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

13 for each $10 of Federal funds provided under 

14 the grant; 

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

16 for each $7 of Federal funds provided under 

17 the grant; and 

18 ‘‘(C) for fiscal year 2013 and each subse19 quent fiscal year, not less than $1 for each $3 

20 of Federal funds provided under the grant. 

21 ‘‘(2) AUTHORITY TO REQUIRE STATE MATCH

22 FOR FISCAL YEARS BEFORE FISCAL YEAR 2011.—For 

23 any fiscal year during the grant program under this 

24 section before fiscal year 2011, the Secretary may 

25 determine the extent to which there shall be required 


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1 a non-Federal contribution from a State receiving a 

2 grant under this section. 

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

4 TRIBES FOR THE DEVELOPMENT OF LOAN 

5 PROGRAMS TO FACILITATE THE WIDE6 SPREAD ADOPTION OF CERTIFIED EHR TECH7 NOLOGY. 

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

9 award competitive grants to eligible entities for the estab10 lishment of programs for loans to health care providers 

11 to conduct the activities described in subsection (e). 

12 ‘‘(b) ELIGIBLE ENTITY DEFINED.—For purposes of 

13 this subsection, the term ‘eligible entity’ means a State 

14 or Indian tribe (as defined in the Indian Self-Determina15 tion and Education Assistance Act) that— 

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

17 application at such time, in such manner, and con18 taining such information as the National Coordi19 nator may require; 

20 ‘‘(2) submits to the National Coordinator a 

21 strategic plan in accordance with subsection (d) and 

22 provides to the National Coordinator assurances that 

23 the entity will update such plan annually in accord24 ance with such subsection; 


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1 ‘‘(3) provides assurances to the National Coor2 dinator that the entity will establish a Loan Fund 

3 in accordance with subsection (c); 

4 ‘‘(4) provides assurances to the National Coor5 dinator that the entity will not provide a loan from 

6 the Loan Fund to a health care provider unless the 

7 provider agrees to— 

8 ‘‘(A) submit reports on quality measures 

9 adopted by the Federal Government (by not 

10 later than 90 days after the date on which such 

11 measures are adopted), to— 

12 ‘‘(i) the Director of the Centers for 

13 Medicare & Medicaid Services (or his or 

14 her designee), in the case of an entity par15 ticipating in the Medicare program under 

16 title XVIII of the Social Security Act or 

17 the Medicaid program under title XIX of 

18 such Act; or 

19 ‘‘(ii) the Secretary in the case of other 

20 entities; 

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

22 Secretary (through criteria established by the 

23 Secretary) that any certified EHR technology 

24 purchased, improved, or otherwise financially 

25 supported under a loan under this section is 


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1 used to exchange health information in a man2 ner that, in accordance with law and standards 

3 (as adopted under section 3005) applicable to 

4 the exchange of information, improves the qual5 ity of health care, such as promoting care co6 ordination; 

7 ‘‘(C) comply with such other requirements 

8 as the entity or the Secretary may require; 

9 ‘‘(D) include a plan on how healthcare pro10 viders involved intend to maintain and support 

11 the certified EHR technology over time; and 

12 ‘‘(E) include a plan on how the healthcare 

13 providers involved intend to maintain and sup14 port the certified EHR technology that would 

15 be purchased with such loan, including the type 

16 of resources expected to be involved and any 

17 such other information as the State or Indian 

18 tribe, respectively, may require; and 

19 ‘‘(5) agrees to provide matching funds in ac20 cordance with subsection (i). 

21 ‘‘(c) ESTABLISHMENT OF FUND.—For purposes of 

22 subsection (b)(3), an eligible entity shall establish a cer23 tified EHR technology loan fund (referred to in this sub24 section as a ‘Loan Fund’) and comply with the other re25 quirements contained in this section. A grant to an eligible 


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1 entity under this section shall be deposited in the Loan 

2 Fund established by the eligible entity. No funds author3 ized by other provisions of this title to be used for other 

4 purposes specified in this title shall be deposited in any 

5 Loan Fund. 

6 ‘‘(d) STRATEGIC PLAN.— 

7 ‘‘(1) IN GENERAL.—For purposes of subsection 

8 (b)(2), a strategic plan of an eligible entity under 

9 this subsection shall identify the intended uses of 

10 amounts available to the Loan Fund of such entity. 

11 ‘‘(2) CONTENTS.—A strategic plan under para12 graph (1), with respect to a Loan Fund of an eligi13 ble entity, shall include for a year the following: 

14 ‘‘(A) A list of the projects to be assisted 

15 through the Loan Fund during such year. 

16 ‘‘(B) A description of the criteria and 

17 methods established for the distribution of 

18 funds from the Loan Fund during the year. 

19 ‘‘(C) A description of the financial status 

20 of the Loan Fund as of the date of submission 

21 of the plan. 

22 ‘‘(D) The short-term and long-term goals 

23 of the Loan Fund. 

24 ‘‘(e) USE OF FUNDS.—Amounts deposited in a Loan 

25 Fund, including loan repayments and interest earned on 


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1 such amounts, shall be used only for awarding loans or 

2 loan guarantees, making reimbursements described in sub3 section (g)(4)(A), or as a source of reserve and security 

4 for leveraged loans, the proceeds of which are deposited 

5 in the Loan Fund established under subsection (a). Loans 

6 under this section may be used by a health care provider 

7 to— 

8 ‘‘(1) facilitate the purchase of certified EHR 

9 technology; 

10 ‘‘(2) enhance the utilization of certified EHR 

11 technology (which may include costs associated with 

12 upgrading health information technology so that it 

13 meets criteria necessary to be a certified EHR tech14 nology); 

15 ‘‘(3) train personnel in the use of such tech16 nology; or 

17 ‘‘(4) improve the secure electronic exchange of 

18 health information. 

19 ‘‘(f) TYPES OF ASSISTANCE.—Except as otherwise 

20 limited by applicable State law, amounts deposited into a 

21 Loan Fund under this subsection may only be used for 

22 the following: 

23 ‘‘(1) To award loans that comply with the fol24 lowing: 


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1 ‘‘(A) The interest rate for each loan shall 

2 not exceed the market interest rate. 

3 ‘‘(B) The principal and interest payments 

4 on each loan shall commence not later than 1 

5 year after the date the loan was awarded, and 

6 each loan shall be fully amortized not later than 

7 10 years after the date of the loan. 

8 ‘‘(C) The Loan Fund shall be credited with 

9 all payments of principal and interest on each 

10 loan awarded from the Loan Fund. 

11 ‘‘(2) To guarantee, or purchase insurance for, 

12 a local obligation (all of the proceeds of which fi13 nance a project eligible for assistance under this 

14 subsection) if the guarantee or purchase would im15 prove credit market access or reduce the interest 

16 rate applicable to the obligation involved. 

17 ‘‘(3) As a source of revenue or security for the 

18 payment of principal and interest on revenue or gen19 eral obligation bonds issued by the eligible entity if 

20 the proceeds of the sale of the bonds will be depos21 ited into the Loan Fund. 

22 ‘‘(4) To earn interest on the amounts deposited 

23 into the Loan Fund. 

24 ‘‘(5) To make reimbursements described in sub25 section (g)(4)(A). 


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1 ‘‘(g) ADMINISTRATION OF LOAN FUNDS.— 

2 ‘‘(1) COMBINED FINANCIAL ADMINISTRATION.— 

3 An eligible entity may (as a convenience and to 

4 avoid unnecessary administrative costs) combine, in 

5 accordance with applicable State law, the financial 

6 administration of a Loan Fund established under 

7 this subsection with the financial administration of 

8 any other revolving fund established by the entity if 

9 otherwise not prohibited by the law under which the 

10 Loan Fund was established. 

11 ‘‘(2) COST OF ADMINISTERING FUND.—Each el12 igible entity may annually use not to exceed 4 per13 cent of the funds provided to the entity under a 

14 grant under this subsection to pay the reasonable 

15 costs of the administration of the programs under 

16 this section, including the recovery of reasonable 

17 costs expended to establish a Loan Fund which are 

18 incurred after the date of the enactment of this title. 

19 ‘‘(3) GUIDANCE AND REGULATIONS.—The Na20 tional Coordinator shall publish guidance and pro21 mulgate regulations as may be necessary to carry 

22 out the provisions of this section, including— 

23 ‘‘(A) provisions to ensure that each eligible 

24 entity commits and expends funds allotted to 

25 the entity under this subsection as efficiently as 


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1 possible in accordance with this title and appli2 cable State laws; and 

3 ‘‘(B) guidance to prevent waste, fraud, and 

4 abuse. 

5 ‘‘(4) PRIVATE SECTOR CONTRIBUTIONS.— 

6 ‘‘(A) IN GENERAL.—A Loan Fund estab7 lished under this subsection may accept con8 tributions from private sector entities, except 

9 that such entities may not specify the recipient 

10 or recipients of any loan issued under this sub11 section. An eligible entity may agree to reim12 burse a private sector entity for any contribu13 tion made under this subparagraph, except that 

14 the amount of such reimbursement may not be 

15 greater than the principal amount of the con16 tribution made. 

17 ‘‘(B) AVAILABILITY OF INFORMATION.— 

18 An eligible entity shall make publicly available 

19 the identity of, and amount contributed by, any 

20 private sector entity under subparagraph (A) 

21 and may issue letters of commendation or make 

22 other awards (that have no financial value) to 

23 any such entity. 

24 ‘‘(h) MATCHING REQUIREMENTS.— 


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1 ‘‘(1) IN GENERAL.—The National Coordinator 

2 may not make a grant under subsection (a) to an el3 igible entity unless the entity agrees to make avail4 able (directly or through donations from public or 

5 private entities) non-Federal contributions in cash to 

6 the costs of carrying out the activities for which the 

7 grant is awarded in an amount equal to not less 

8 than $1 for each $5 of Federal funds provided under 

9 the grant. 

10 ‘‘(2) DETERMINATION OF AMOUNT OF NON11 FEDERAL CONTRIBUTION.—In determining the 

12 amount of non-Federal contributions that an eligible 

13 entity has provided pursuant to subparagraph (A), 

14 the National Coordinator may not include any 

15 amounts provided to the entity by the Federal Gov16 ernment. 

17 ‘‘(i) EFFECTIVE DATE.—The Secretary may not 

18 make an award under this section prior to January 1, 

19 2010. 

20 ‘‘SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE IN21 FORMATION TECHNOLOGY INTO CLINICAL 

22 EDUCATION. 

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

24 under this section to carry out demonstration projects to 

25 develop academic curricula integrating certified EHR 


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1 technology in the clinical education of health professionals. 

2 Such awards shall be made on a competitive basis and 

3 pursuant to peer review. 

4 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant 

5 under subsection (a), an entity shall— 

6 ‘‘(1) submit to the Secretary an application at 

7 such time, in such manner, and containing such in8 formation as the Secretary may require; 

9 ‘‘(2) submit to the Secretary a strategic plan 

10 for integrating certified EHR technology in the clin11 ical education of health professionals to reduce med12 ical errors, increase access to prevention, reduce 

13 chronic diseases, and enhance health care quality; 

14 ‘‘(3) be— 

15 ‘‘(A) a school of medicine, osteopathic 

16 medicine, dentistry, or pharmacy, a graduate 

17 program in behavioral or mental health, or any 

18 other graduate health professions school; 

19 ‘‘(B) a graduate school of nursing or phy20 sician assistant studies; 

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

22 described in subparagraph (A) or (B); or 

23 ‘‘(D) an institution with a graduate med24 ical education program in medicine, osteopathic 


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1 medicine, dentistry, pharmacy, nursing, or phy2 sician assistance studies. 

3 ‘‘(4) provide for the collection of data regarding 

4 the effectiveness of the demonstration project to be 

5 funded under the grant in improving the safety of 

6 patients, the efficiency of health care delivery, and 

7 in increasing the likelihood that graduates of the 

8 grantee will adopt and incorporate certified EHR 

9 technology, in the delivery of health care services; 

10 and 

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

12 subsection (d). 

13 ‘‘(c) USE OF FUNDS.— 

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

15 under subsection (a), an eligible entity shall— 

16 ‘‘(A) use grant funds in collaboration with 

17 2 or more disciplines; and 

18 ‘‘(B) use grant funds to integrate certified 

19 EHR technology into community-based clinical 

20 education. 

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

22 use amounts received under a grant under sub23 section (a) to purchase hardware, software, or serv24 ices. 


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1 ‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 

2 provide more than 50 percent of the costs of any activity 

3 for which assistance is provided under subsection (a), ex4 cept in an instance of national economic conditions which 

5 would render the cost-share requirement under this sub6 section detrimental to the program and upon notification 

7 to Congress as to the justification to waive the cost-share 

8 requirement. 

9 ‘‘(e) EVALUATION.—The Secretary shall take such 

10 action as may be necessary to evaluate the projects funded 

11 under this section and publish, make available, and dis12 seminate the results of such evaluations on as wide a basis 

13 as is practicable. 

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

15 of enactment of this title, and annually thereafter, the Sec16 retary shall submit to the Committee on Health, Edu17 cation, Labor, and Pensions and the Committee on Fi18 nance of the Senate, and the Committee on Energy and 

19 Commerce of the House of Representatives a report 

20 that— 

21 ‘‘(1) describes the specific projects established 

22 under this section; and 

23 ‘‘(2) contains recommendations for Congress 

24 based on the evaluation conducted under subsection 

25 (e). 


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1 ‘‘SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS 

2 ON HEALTH CARE. 

3 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

4 with the Director of the National Science Foundation, 

5 shall provide assistance to institutions of higher education 

6 (or consortia thereof) to establish or expand medical 

7 health informatics education programs, including certifi8 cation, undergraduate, and masters degree programs, for 

9 both health care and information technology students to 

10 ensure the rapid and effective utilization and development 

11 of health information technologies (in the United States 

12 health care infrastructure). 

13 ‘‘(b) ACTIVITIES.—Activities for which assistance 

14 may be provided under subsection (a) may include the fol15 lowing: 

16 ‘‘(1) Developing and revising curricula in med17 ical health informatics and related disciplines. 

18 ‘‘(2) Recruiting and retaining students to the 

19 program involved. 

20 ‘‘(3) Acquiring equipment necessary for student 

21 instruction in these programs, including the installa22 tion of testbed networks for student use. 

23 ‘‘(4) Establishing or enhancing bridge programs 

24 in the health informatics fields between community 

25 colleges and universities. 


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1 ‘‘(c) PRIORITY.—In providing assistance under sub2 section (a), the Secretary shall give preference to the fol3 lowing: 

4 ‘‘(1) Existing education and training programs. 

5 ‘‘(2) Programs designed to be completed in less 

6 than six months. 

7 ‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 

8 provide more than 50 percent of the costs of any activity 

9 for which assistance is provided under subsection (a), ex10 cept in an instance of national economic conditions which 

11 would render the cost-share requirement under this sub12 section detrimental to the program and upon notification 

13 to Congress as to the justification to waive the cost-share 

14 requirement. 

15 ‘‘SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS. 

16 ‘‘(a) REPORTS.—The Secretary may require that an 

17 entity receiving assistance under this title shall submit to 

18 the Secretary, not later than the date that is 1 year after 

19 the date of receipt of such assistance, a report that in20 cludes— 

21 ‘‘(1) an analysis of the effectiveness of such ac22 tivities for which the entity receives such assistance, 

23 as compared to the goals for such activities; and 

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

25 healthcare quality and safety. 


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1 ‘‘(b) REQUIREMENT TO IMPROVE QUALITY OF CARE

2 AND DECREASE IN COSTS.—The National Coordinator 

3 shall annually evaluate the activities conducted under this 

4 title and shall, in awarding grants, implement the lessons 

5 learned from such evaluation in a manner so that awards 

6 made subsequent to each such evaluation are made in a 

7 manner that, in the determination of the National Coordi8 nator, will result in the greatest improvement in the qual9 ity and efficiency of health care. 

10 ‘‘SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS. 

11 ‘‘For the purposes of carrying out this subtitle, there 

12 is authorized to be appropriated such sums as may be nec13 essary for each of the fiscal years 2009 through 2013. 

14 Amounts so appropriated shall remain available until ex15 pended.’’. 

16 Subtitle D—Privacy 

17 SEC. 13400. DEFINITIONS. 

18 In this subtitle, except as specified otherwise: 

19 (1) BREACH.—The term ‘‘breach’’ means the 

20 unauthorized acquisition, access, use, or disclosure 

21 of protected health information which compromises 

22 the security, privacy, or integrity of protected health 

23 information maintained by or on behalf of a person. 

24 Such term does not include any unintentional acqui25 sition, access, use, or disclosure of such information 


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1 by an employee or agent of the covered entity or 

2 business associate involved if such acquisition, ac3 cess, use, or disclosure, respectively, was made in 

4 good faith and within the course and scope of the 

5 employment or other contractual relationship of such 

6 employee or agent, respectively, with the covered en7 tity or business associate and if such information is 

8 not further acquired, accessed, used, or disclosed by 

9 such employee or agent. 

10 (2) BUSINESS ASSOCIATE.—The term ‘‘business 

11 associate’’ has the meaning given such term in sec12 tion 160.103 of title 45, Code of Federal Regula13 tions. 

14 (3) COVERED ENTITY.—The term ‘‘covered en15 tity’’ has the meaning given such term in section 

16 160.103 of title 45, Code of Federal Regulations. 

17 (4) DISCLOSE.—The terms ‘‘disclose’’ and ‘‘dis18 closure’’ have the meaning given the term ‘‘disclo19 sure’’ in section 160.103 of title 45, Code of Federal 

20 Regulations. 

21 (5) ELECTRONIC HEALTH RECORD.—The term 

22 ‘‘electronic health record’’ means an electronic 

23 record of health-related information on an individual 

24 that is created, gathered, managed, and consulted by 

25 authorized health care clinicians and staff. 


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1 (6) HEALTH CARE OPERATIONS.—The term 

2 ‘‘health care operation’’ has the meaning given such 

3 term in section 164.501 of title 45, Code of Federal 

4 Regulations. 

5 (7) HEALTH CARE PROVIDER.—The term 

6 ‘‘health care provider’’ has the meaning given such 

7 term in section 160.103 of title 45, Code of Federal 

8 Regulations. 

9 (8) HEALTH PLAN.—The term ‘‘health plan’’ 

10 has the meaning given such term in section 1171(5) 

11 of the Social Security Act. 

12 (9) NATIONAL COORDINATOR.—The term ‘‘Na13 tional Coordinator’’ means the head of the Office of 

14 the National Coordinator for Health Information 

15 Technology established under section 3001(a) of the 

16 Public Health Service Act, as added by section 

17 13101. 

18 (10) PAYMENT.—The term ‘‘payment’’ has the 

19 meaning given such term in section 164.501 of title 

20 45, Code of Federal Regulations. 

21 (11) PERSONAL HEALTH RECORD.—The term 

22 ‘‘personal health record’’ means an electronic record 

23 of individually identifiable health information on an 

24 individual that can be drawn from multiple sources 


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1 and that is managed, shared, and controlled by or 

2 for the individual. 

3 (12) PROTECTED HEALTH INFORMATION.—The 

4 term ‘‘protected health information’’ has the mean5 ing given such term in section 160.103 of title 45, 

6 Code of Federal Regulations. 

7 (13) SECRETARY.—The term ‘‘Secretary’’ 

8 means the Secretary of Health and Human Services. 

9 (14) SECURITY.—The term ‘‘security’’ has the 

10 meaning given such term in section 164.304 of title 

11 45, Code of Federal Regulations. 

12 (15) STATE.—The term ‘‘State’’ means each of 

13 the several States, the District of Columbia, Puerto 

14 Rico, the Virgin Islands, Guam, American Samoa, 

15 and the Northern Mariana Islands. 

16 (16) TREATMENT.—The term ‘‘treatment’’ has 

17 the meaning given such term in section 164.501 of 

18 title 45, Code of Federal Regulations. 

19 (17) USE.—The term ‘‘use’’ has the meaning 

20 given such term in section 160.103 of title 45, Code 

21 of Federal Regulations. 

22 (18) VENDOR OF PERSONAL HEALTH

23 RECORDS.—The term ‘‘vendor of personal health 

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1 ty (as defined in paragraph (3)), that offers or 

2 maintains a personal health record. 

3 PART I—IMPROVED PRIVACY PROVISIONS AND 

4 SECURITY PROVISIONS 

5 SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND 

6 PENALTIES TO BUSINESS ASSOCIATES OF 

7 COVERED ENTITIES; ANNUAL GUIDANCE ON 

8 SECURITY PROVISIONS. 

9 (a) APPLICATION OF SECURITY PROVISIONS.—Sec10 tions 164.308, 164.310, 164.312, and 164.316 of title 45, 

11 Code of Federal Regulations, shall apply to a business as12 sociate of a covered entity in the same manner that such 

13 sections apply to the covered entity. The additional re14 quirements of this title that relate to security and that 

15 are made applicable with respect to covered entities shall 

16 also be applicable to such a business associate and shall 

17 be incorporated into the business associate agreement be18 tween the business associate and the covered entity. 

19 (b) APPLICATION OF CIVIL AND CRIMINAL PEN20 ALTIES.—In the case of a business associate that violates 

21 any security provision specified in subsection (a), sections 

22 1176 and 1177 of the Social Security Act (42 U.S.C. 

23 1320d-5, 1320d-6) shall apply to the business associate 

24 with respect to such violation in the same manner such 


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1 sections apply to a covered entity that violates such secu2 rity provision. 

3 (c) ANNUAL GUIDANCE.—For the first year begin4 ning after the date of the enactment of this Act and annu5 ally thereafter, the Secretary of Health and Human Serv6 ices shall, in consultation with industry stakeholders, an7 nually issue guidance on the most effective and appro8 priate technical safeguards for use in carrying out the sec9 tions referred to in subsection (a) and the security stand10 ards in subpart C of part 164 of title 45, Code of Federal 

11 Regulations, as such provisions are in effect as of the date 

12 before the enactment of this Act. 

13 SEC. 13402. NOTIFICATION IN THE CASE OF BREACH. 

14 (a) IN GENERAL.—A covered entity that accesses, 

15 maintains, retains, modifies, records, stores, destroys, or 

16 otherwise holds, uses, or discloses unsecured protected 

17 health information (as defined in subsection (h)(1)) shall, 

18 in the case of a breach of such information that is discov19 ered by the covered entity, notify each individual whose 

20 unsecured protected health information has been, or is 

21 reasonably believed by the covered entity to have been, 

22 accessed, acquired, or disclosed as a result of such breach. 

23 (b) NOTIFICATION OF COVERED ENTITY BY BUSI24 NESS ASSOCIATE.—A business associate of a covered enti25 ty that accesses, maintains, retains, modifies, records, 


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1 stores, destroys, or otherwise holds, uses, or discloses un2 secured protected health information shall, following the 

3 discovery of a breach of such information, notify the cov4 ered entity of such breach. Such notice shall include the 

5 identification of each individual whose unsecured protected 

6 health information has been, or is reasonably believed by 

7 the business associate to have been, accessed, acquired, 

8 or disclosed during such breach. 

9 (c) BREACHES TREATED AS DISCOVERED.—For pur10 poses of this section, a breach shall be treated as discov11 ered by a covered entity or by a business associate as of 

12 the first day on which such breach is known to such entity 

13 or associate, respectively, (including any person, other 

14 than the individual committing the breach, that is an em15 ployee, officer, or other agent of such entity or associate, 

16 respectively) or should reasonably have been known to 

17 such entity or associate (or person) to have occurred. 

18 (d) TIMELINESS OF NOTIFICATION.— 

19 (1) IN GENERAL.—Subject to subsection (g), all 

20 notifications required under this section shall be 

21 made without unreasonable delay and in no case 

22 later than 60 calendar days after the discovery of a 

23 breach by the covered entity involved (or business 

24 associate involved in the case of a notification re25 quired under subsection (b)). 


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1 (2) BURDEN OF PROOF.—The covered entity in2 volved (or business associate involved in the case of 

3 a notification required under subsection (b)), shall 

4 have the burden of demonstrating that all notifica5 tions were made as required under this part, includ6 ing evidence demonstrating the necessity of any 

7 delay. 

8 (e) METHODS OF NOTICE.— 

9 (1) INDIVIDUAL NOTICE.—Notice required 

10 under this section to be provided to an individual, 

11 with respect to a breach, shall be provided promptly 

12 and in the following form: 

13 (A) Written notification by first-class mail 

14 to the individual (or the next of kin of the indi15 vidual if the individual is deceased) at the last 

16 known address of the individual or the next of 

17 kin, respectively, or, if specified as a preference 

18 by the individual, by electronic mail. The notifi19 cation may be provided in one or more mailings 

20 as information is available. 

21 (B) In the case in which there is insuffi22 cient, or out-of-date contact information (in23 cluding a phone number, email address, or any 

24 other form of appropriate communication) that 

25 precludes direct written (or, if specified by the 


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1 individual under subparagraph (A), electronic) 

2 notification to the individual, a substitute form 

3 of notice shall be provided, including, in the 

4 case that there are 10 or more individuals for 

5 which there is insufficient or out-of-date contact 

6 information, a conspicuous posting for a period 

7 determined by the Secretary on the home page 

8 of the Web site of the covered entity involved or 

9 notice in major print or broadcast media, in10 cluding major media in geographic areas where 

11 the individuals affected by the breach likely re12 side. Such a notice in media or web posting will 

13 include a toll-free phone number where an indi14 vidual can learn whether or not the individual’s 

15 unsecured protected health information is pos16 sibly included in the breach. 

17 (C) In any case deemed by the covered en18 tity involved to require urgency because of pos19 sible imminent misuse of unsecured protected 

20 health information, the covered entity, in addi21 tion to notice provided under subparagraph (A), 

22 may provide information to individuals by tele23 phone or other means, as appropriate. 

24 (2) MEDIA NOTICE.—Notice shall be provided 

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1 diction, following the discovery of a breach described 

2 in subsection (a), if the unsecured protected health 

3 information of more than 500 residents of such 

4 State or jurisdiction is, or is reasonably believed to 

5 have been, accessed, acquired, or disclosed during 

6 such breach. 

7 (3) NOTICE TO SECRETARY.—Notice shall be 

8 provided to the Secretary by covered entities of un9 secured protected health information that has been 

10 acquired or disclosed in a breach. If the breach was 

11 with respect to 500 or more individuals than such 

12 notice must be provided immediately. If the breach 

13 was with respect to less than 500 individuals, the 

14 covered entity may maintain a log of any such 

15 breach occurring and annually submit such a log to 

16 the Secretary documenting such breaches occurring 

17 during the year involved. 

18 (4) POSTING ON HHS PUBLIC WEBSITE.—The 

19 Secretary shall make available to the public on the 

20 Internet website of the Department of Health and 

21 Human Services a list that identifies each covered 

22 entity involved in a breach described in subsection 

23 (a) in which the unsecured protected health informa24 tion of more than 500 individuals is acquired or dis25 closed. 


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1 (f) CONTENT OF NOTIFICATION.—Regardless of the 

2 method by which notice is provided to individuals under 

3 this section, notice of a breach shall include, to the extent 

4 possible, the following: 

5 (1) A brief description of what happened, in6 cluding the date of the breach and the date of the 

7 discovery of the breach, if known. 

8 (2) A description of the types of unsecured pro9 tected health information that were involved in the 

10 breach (such as full name, Social Security number, 

11 date of birth, home address, account number, or dis12 ability code). 

13 (3) The steps individuals should take to protect 

14 themselves from potential harm resulting from the 

15 breach. 

16 (4) A brief description of what the covered enti17 ty involved is doing to investigate the breach, to 

18 mitigate losses, and to protect against any further 

19 breaches. 

20 (5) Contact procedures for individuals to ask 

21 questions or learn additional information, which 

22 shall include a toll-free telephone number, an e-mail 

23 address, Web site, or postal address. 

24 (g) DELAY OF NOTIFICATION AUTHORIZED FOR LAW

25 ENFORCEMENT PURPOSES.—If a law enforcement official 


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1 determines that a notification, notice, or posting required 

2 under this section would impede a criminal investigation 

3 or cause damage to national security, such notification, 

4 notice, or posting shall be delayed in the same manner 

5 as provided under section 164.528(a)(2) of title 45, Code 

6 of Federal Regulations, in the case of a disclosure covered 

7 under such section. 

8 (h) UNSECURED PROTECTED HEALTH INFORMA9 TION.— 

10 (1) DEFINITION.— 

11 (A) IN GENERAL.—Subject to subpara12 graph (B), for purposes of this section, the 

13 term ‘‘unsecured protected health information’’ 

14 means protected health information that is not 

15 secured through the use of a technology or 

16 methodology specified by the Secretary in the 

17 guidance issued under paragraph (2). 

18 (B) EXCEPTION IN CASE TIMELY GUID19 ANCE NOT ISSUED.—In the case that the Sec20 retary does not issue guidance under paragraph 

21 (2) by the date specified in such paragraph, for 

22 purposes of this section, the term ‘‘unsecured 

23 protected health information’’ shall mean pro24 tected health information that is not secured by 

25 a technology standard that renders protected 


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1 health information unusable, unreadable, or in2 decipherable to unauthorized individuals and is 

3 developed or endorsed by a standards devel4 oping organization that is accredited by the 

5 American National Standards Institute. 

6 (2) GUIDANCE.—For purposes of paragraph (1) 

7 and section 13407(f)(3), not later than the date that 

8 is 60 days after the date of the enactment of this 

9 Act, the Secretary shall, after consultation with 

10 stakeholders, issue (and annually update) guidance 

11 specifying the technologies and methodologies that 

12 render protected health information unusable, 

13 unreadable, or indecipherable to unauthorized indi14 viduals. 

15 (i) REPORT TO CONGRESS ON BREACHES.— 

16 (1) IN GENERAL.—Not later than 12 months 

17 after the date of the enactment of this Act and an18 nually thereafter, the Secretary shall prepare and 

19 submit to the Committee on Finance and the Com20 mittee on Health, Education, Labor, and Pensions 

21 of the Senate and the Committee on Ways and 

22 Means and the Committee on Energy and Commerce 

23 of the House of Representatives a report containing 

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1 ing breaches for which notice was provided to the 

2 Secretary under subsection (e)(3). 

3 (2) INFORMATION.—The information described 

4 in this paragraph regarding breaches specified in 

5 paragraph (1) shall include— 

6 (A) the number and nature of such 

7 breaches; and 

8 (B) actions taken in response to such 

9 breaches. 

10 (j) REGULATIONS; EFFECTIVE DATE.—To carry out 

11 this section, the Secretary of Health and Human Services 

12 shall promulgate interim final regulations by not later 

13 than the date that is 180 days after the date of the enact14 ment of this title. The provisions of this section shall apply 

15 to breaches that are discovered on or after the date that 

16 is 30 days after the date of publication of such interim 

17 final regulations. 

18 SEC. 13403. EDUCATION ON HEALTH INFORMATION PRI19 VACY. 

20 (a) REGIONAL OFFICE PRIVACY ADVISORS.—Not 

21 later than 6 months after the date of the enactment of 

22 this Act, the Secretary shall designate an individual in 

23 each regional office of the Department of Health and 

24 Human Services to offer guidance and education to cov25 ered entities, business associates, and individuals on their 


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1 rights and responsibilities related to Federal privacy and 

2 security requirements for protected health information. 

3 (b) EDUCATION INITIATIVE ON USES OF HEALTH IN4 FORMATION.—Not later than 12 months after the date of 

5 the enactment of this Act, the Office for Civil Rights with6 in the Department of Health and Human Services shall 

7 develop and maintain a multi-faceted national education 

8 initiative to enhance public transparency regarding the 

9 uses of protected health information, including programs 

10 to educate individuals about the potential uses of their 

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

12 the rights of individuals with respect to such uses. Such 

13 programs shall be conducted in a variety of languages and 

14 present information in a clear and understandable man15 ner. 

16 SEC. 13404. APPLICATION OF PRIVACY PROVISIONS AND 

17 PENALTIES TO BUSINESS ASSOCIATES OF 

18 COVERED ENTITIES. 

19 (a) APPLICATION OF CONTRACT REQUIREMENTS.— 

20 In the case of a business associate of a covered entity that 

21 obtains or creates protected health information pursuant 

22 to a written contract (or other written arrangement) de23 scribed in section 164.502(e)(2) of title 45, Code of Fed24 eral Regulations, with such covered entity, the business 

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1 mation only if such use or disclosure, respectively, is in 

2 compliance with each applicable requirement of section 

3 164.504(e) of such title. The additional requirements of 

4 this subtitle that relate to privacy and that are made ap5 plicable with respect to covered entities shall also be appli6 cable to such a business associate and shall be incor7 porated into the business associate agreement between the 

8 business associate and the covered entity. 

9 (b) APPLICATION OF KNOWLEDGE ELEMENTS ASSO10 CIATED WITH CONTRACTS.—Section 164.504(e)(1)(ii) of 

11 title 45, Code of Federal Regulations, shall apply to a 

12 business associate described in subsection (a), with respect 

13 to compliance with such subsection, in the same manner 

14 that such section applies to a covered entity, with respect 

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

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

17 section 164.504(e)(1)(ii) each reference to the business as18 sociate, with respect to a contract, shall be treated as a 

19 reference to the covered entity involved in such contract. 

20 (c) APPLICATION OF CIVIL AND CRIMINAL PEN21 ALTIES.—In the case of a business associate that violates 

22 any provision of subsection (a) or (b), the provisions of 

23 sections 1176 and 1177 of the Social Security Act (42 

24 U.S.C. 1320d-5, 1320d-6) shall apply to the business as25 sociate with respect to such violation in the same manner 


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1 as such provisions apply to a person who violates a provi2 sion of part C of title XI of such Act. 

3 SEC. 13405. RESTRICTIONS ON CERTAIN DISCLOSURES AND 

4 SALES OF HEALTH INFORMATION; ACCOUNT5 ING OF CERTAIN PROTECTED HEALTH IN6 FORMATION DISCLOSURES; ACCESS TO CER7 TAIN INFORMATION IN ELECTRONIC FOR8 MAT. 

9 (a) REQUESTED RESTRICTIONS ON CERTAIN DIS10 CLOSURES OF HEALTH INFORMATION.—In the case that 

11 an individual requests under paragraph (a)(1)(i)(A) of 

12 section 164.522 of title 45, Code of Federal Regulations, 

13 that a covered entity restrict the disclosure of the pro14 tected health information of the individual, notwith15 standing paragraph (a)(1)(ii) of such section, the covered 

16 entity must comply with the requested restriction if— 

17 (1) except as otherwise required by law, the dis18 closure is to a health plan for purposes of carrying 

19 out payment or health care operations (and is not 

20 for purposes of carrying out treatment); and 

21 (2) the protected health information pertains 

22 solely to a health care item or service for which the 

23 health care provider involved has been paid out of 

24 pocket in full. 


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1 (b) DISCLOSURES REQUIRED TO BE LIMITED TO

2 THE LIMITED DATA SET OR THE MINIMUM NEC3 ESSARY.— 

4 (1) IN GENERAL.— 

5 (A) IN GENERAL.—Subject to subpara6 graph (B), a covered entity shall be treated as 

7 being in compliance with section 164.502(b)(1) 

8 of title 45, Code of Federal Regulations, with 

9 respect to the use, disclosure, or request of pro10 tected health information described in such sec11 tion, only if the covered entity limits such pro12 tected health information, to the extent prac13 ticable, to the limited data set (as defined in 

14 section 164.514(e)(2) of such title) or, if needed 

15 by such entity, to the minimum necessary to ac16 complish the intended purpose of such use, dis17 closure, or request, respectively. 

18 (B) GUIDANCE.—Not later than 18 

19 months after the date of the enactment of this 

20 section, the Secretary shall issue guidance on 

21 what constitutes ‘‘minimum necessary’’ for pur22 poses of subpart E of part 164 of title 45, Code 

23 of Federal Regulation. In issuing such guidance 

24 the Secretary shall take into consideration the 

25 guidance under section 13424(c). 


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1 (C) SUNSET.—Subparagraph (A) shall not 

2 apply on and after the effective date on which 

3 the Secretary issues the guidance under sub4 paragraph (B). 

5 (2) DETERMINATION OF MINIMUM NEC6 ESSARY.—For purposes of paragraph (1), in the 

7 case of the disclosure of protected health informa8 tion, the covered entity or business associate dis9 closing such information shall determine what con10 stitutes the minimum necessary to accomplish the 

11 intended purpose of such disclosure. 

12 (3) APPLICATION OF EXCEPTIONS.—The excep13 tions described in section 164.502(b)(2) of title 45, 

14 Code of Federal Regulations, shall apply to the re15 quirement under paragraph (1) as of the effective 

16 date described in section 13423 in the same manner 

17 that such exceptions apply to section 164.502(b)(1) 

18 of such title before such date. 

19 (4) RULE OF CONSTRUCTION.—Nothing in this 

20 subsection shall be construed as affecting the use, 

21 disclosure, or request of protected health information 

22 that has been de-identified. 

23 (c) ACCOUNTING OF CERTAIN PROTECTED HEALTH

24 INFORMATION DISCLOSURES REQUIRED IF COVERED EN25 TITY USES ELECTRONIC HEALTH RECORD.— 


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1 (1) IN GENERAL.—In applying section 164.528 

2 of title 45, Code of Federal Regulations, in the case 

3 that a covered entity uses or maintains an electronic 

4 health record with respect to protected health infor5 mation— 

6 (A) the exception under paragraph 

7 (a)(1)(i) of such section shall not apply to dis8 closures through an electronic health record 

9 made by such entity of such information; and 

10 (B) an individual shall have a right to re11 ceive an accounting of disclosures described in 

12 such paragraph of such information made by 

13 such covered entity during only the three years 

14 prior to the date on which the accounting is re15 quested. 

16 (2) REGULATIONS.—The Secretary shall pro17 mulgate regulations on what information shall be 

18 collected about each disclosure referred to in para19 graph (1)(A) not later than 18 months after the 

20 date on which the Secretary adopts standards on ac21 counting for disclosure described in the section 

22 3002(b)(2)(B)(iv) of the Public Health Service Act, 

23 as added by section 13101. Such regulations shall 

24 only require such information to be collected through 

25 an electronic health record in a manner that takes 


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1 into account the interests of individuals in learning 

2 the circumstances under which their protected health 

3 information is being disclosed and takes into account 

4 the administrative burden of accounting for such 

5 disclosures. 

6 (3) CONSTRUCTION.—Nothing in this sub7 section shall be construed as— 

8 (A) requiring a covered entity to account 

9 for disclosures of protected health information 

10 that are not made by such covered entity; or 

11 (B) requiring a business associate of a cov12 ered entity to account for disclosures of pro13 tected health information that are not made by 

14 such business associate. 

15 (4) REASONABLE FEE.—A covered entity may 

16 impose a reasonable fee on an individual for an ac17 counting performed under paragraph (1)(B). Any 

18 such fee shall not be greater than the entity’s labor 

19 costs in responding to the request. 

20 (5) EFFECTIVE DATE.— 

21 (A) CURRENT USERS OF ELECTRONIC

22 RECORDS.—In the case of a covered entity inso23 far as it acquired an electronic health record as 

24 of January 1, 2009, paragraph (1) shall apply 

25 to disclosures, with respect to protected health 


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1 information, made by the covered entity from 

2 such a record on and after January 1, 2014. 

3 (B) OTHERS.—In the case of a covered en4 tity insofar as it acquires an electronic health 

5 record after January 1, 2010, paragraph (1) 

6 shall apply to disclosures, with respect to pro7 tected health information, made by the covered 

8 entity from such record on and after the later 

9 of the following: 

10 (i) January 1, 2011; or 

11 (ii) the date that it acquires an elec12 tronic health record. 

13 (d) REVIEW OF HEALTH CARE OPERATIONS.—Not 

14 later than 18 months after the date of the enactment of 

15 this title, the Secretary shall promulgate regulations to 

16 eliminate from the definition of health care operations 

17 under section 164.501 of title 45, Code of Federal Regula18 tions, those activities that can reasonably and efficiently 

19 be conducted through the use of information that is de20 identified (in accordance with the requirements of section 

21 164.514(b) of such title) or that should require a valid 

22 authorization for use or disclosure. In promulgating such 

23 regulations, the Secretary may choose to narrow or clarify 

24 activities that the Secretary chooses to retain in the defini25 tion of health care operations and the Secretary shall take 


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1 into account the report under section 13424(d). In such 

2 regulations the Secretary shall specify the date on which 

3 such regulations shall apply to disclosures made by a cov4 ered entity, but in no case would such date be sooner than 

5 the date that is 24 months after the date of the enactment 

6 of this section. 

7 (e) PROHIBITION ON SALE OF ELECTRONIC HEALTH

8 RECORDS OR PROTECTED HEALTH INFORMATION OB9 TAINED FROM ELECTRONIC HEALTH RECORDS.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), a covered entity or business associate 

12 shall not directly or indirectly receive remuneration 

13 in exchange for any protected health information of 

14 an individual unless the covered entity obtained from 

15 the individual, in accordance with section 164.508 of 

16 title 45, Code of Federal Regulations, a valid au17 thorization that includes, in accordance with such 

18 section, a specification of whether the protected 

19 health information can be further exchanged for re20 muneration by the entity receiving protected health 

21 information of that individual. 

22 (2) EXCEPTIONS.—Paragraph (1) shall not 

23 apply in the following cases: 

24 (A) The purpose of the exchange is for re25 search or public health activities (as described 


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1 in sections 164.501, 164.512(i), and 164.512(b) 

2 of title 45, Code of Federal Regulations) and 

3 the price charged reflects the costs of prepara4 tion and transmittal of the data for such pur5 pose. 

6 (B) The purpose of the exchange is for the 

7 treatment of the individual and the price 

8 charges reflects not more than the costs of 

9 preparation and transmittal of the data for 

10 such purpose. 

11 (C) The purpose of the exchange is the 

12 health care operation specifically described in 

13 subparagraph (iv) of paragraph (6) of the defi14 nition of healthcare operations in section 

15 164.501 of title 45, Code of Federal Regula16 tions. 

17 (D) The purpose of the exchange is for re18 muneration that is provided by a covered entity 

19 to a business associate for activities involving 

20 the exchange of protected health information 

21 that the business associate undertakes on behalf 

22 of and at the specific request of the covered en23 tity pursuant to a business associate agreement. 

24 (E) The purpose of the exchange is to pro25 vide an individual with a copy of the individVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00361 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 ual’s protected health information pursuant to 

2 section 164.524 of title 45, Code of Federal 

3 Regulations. 

4 (F) The purpose of the exchange is other5 wise determined by the Secretary in regulations 

6 to be similarly necessary and appropriate as the 

7 exceptions provided in subparagraphs (A) 

8 through (E). 

9 (3) REGULATIONS.—The Secretary shall pro10 mulgate regulations to carry out this subsection, in11 cluding exceptions described in paragraph (2), not 

12 later than 18 months after the date of the enact13 ment of this title. 

14 (4) EFFECTIVE DATE.—Paragraph (1) shall 

15 apply to exchanges occurring on or after the date 

16 that is 6 months after the date of the promulgation 

17 of final regulations implementing this subsection. 

18 (f) ACCESS TO CERTAIN INFORMATION IN ELEC19 TRONIC FORMAT.—In applying section 164.524 of title 

20 45, Code of Federal Regulations, in the case that a cov21 ered entity uses or maintains an electronic health record 

22 with respect to protected health information of an indi23 vidual— 


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1 (1) the individual shall have a right to obtain 

2 from such covered entity a copy of such information 

3 in an electronic format; and 

4 (2) notwithstanding paragraph (c)(4) of such 

5 section, any fee that the covered entity may impose 

6 for providing such individual with a copy of such in7 formation (or a summary or explanation of such in8 formation) if such copy (or summary or explanation) 

9 is in an electronic form shall not be greater than the 

10 entity’s labor costs in responding to the request for 

11 the copy (or summary or explanation). 

12 SEC. 13406. CONDITIONS ON CERTAIN CONTACTS AS PART 

13 OF HEALTH CARE OPERATIONS. 

14 (a) MARKETING.— 

15 (1) IN GENERAL.—A communication by a cov16 ered entity or business associate that is about a 

17 product or service and that encourages recipients of 

18 the communication to purchase or use the product 

19 or service shall not be considered a health care oper20 ation for purposes of subpart E of part 164 of title 

21 45, Code of Federal Regulations, unless the commu22 nication is made as described in subparagraph (i), 

23 (ii), or (iii) of paragraph (1) of the definition of 

24 marketing in section 164.501 of such title. 


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1 (2) PAYMENT FOR CERTAIN COMMUNICA2 TIONS.—A covered entity or business associate may 

3 not receive direct or indirect payment in exchange 

4 for making any communication described in sub5 paragraph (i), (ii), or (iii) of paragraph (1) of the 

6 definition of marketing in section 164.501 of title 

7 45, Code of Federal Regulations, except— 

8 (A) a business associate of a covered entity 

9 may receive payment from the covered entity 

10 for making any such communication on behalf 

11 of the covered entity that is consistent with the 

12 written contract (or other written arrangement) 

13 described in section 164.502(e)(2) of such title 

14 between such business associate and covered en15 tity; 

16 (B) a covered entity may receive payment 

17 in exchange for making any such communica18 tion if the entity obtains from the recipient of 

19 the communication, in accordance with section 

20 164.508 of title 45, Code of Federal Regula21 tions, a valid authorization (as described in 

22 paragraph (b) of such section) with respect to 

23 such communication; and 

24 (C) where such communication describes 

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1 viously been prescribed for or administered to 

2 the recipient of the communication, or a family 

3 member of such recipient. 

4 (b) FUNDRAISING.—Fundraising for the benefit of a 

5 covered entity shall not be considered a health care oper6 ation for purposes of section 164.501 of title 45, Code of 

7 Federal Regulations. 

8 (c) EFFECTIVE DATE.—This section shall apply to 

9 contracting occurring on or after the effective date speci10 fied under section 13423. 

11 SEC. 13407. TEMPORARY BREACH NOTIFICATION REQUIRE12 MENT FOR VENDORS OF PERSONAL HEALTH 

13 RECORDS AND OTHER NON-HIPAA COVERED 

14 ENTITIES. 

15 (a) IN GENERAL.—In accordance with subsection (c), 

16 each vendor of personal health records, following the dis17 covery of a breach of security of unsecured PHR identifi18 able health information that is in a personal health record 

19 maintained or offered by such vendor, and each entity de20 scribed in clause (ii) or (iii) of section 13424(b)(1)(A), fol21 lowing the discovery of a breach of security of such infor22 mation that is obtained through a product or service pro23 vided by such entity, shall— 

24 (1) notify each individual who is a citizen or 

25 resident of the United States whose unsecured PHR 


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1 identifiable health information was acquired by an 

2 unauthorized person as a result of such a breach of 

3 security; and 

4 (2) notify the Federal Trade Commission. 

5 (b) NOTIFICATION BY THIRD PARTY SERVICE PRO6 VIDERS.—A third party service provider that provides 

7 services to a vendor of personal health records or to an 

8 entity described in clause (ii) or (iii) of section 

9 13424(b)(1)(A) in connection with the offering or mainte10 nance of a personal health record or a related product or 

11 service and that accesses, maintains, retains, modifies, 

12 records, stores, destroys, or otherwise holds, uses, or dis13 closes unsecured PHR identifiable health information in 

14 such a record as a result of such services shall, following 

15 the discovery of a breach of security of such information, 

16 notify such vendor or entity, respectively, of such breach. 

17 Such notice shall include the identification of each indi18 vidual whose unsecured PHR identifiable health informa19 tion has been, or is reasonably believed to have been, 

20 accessed, acquired, or disclosed during such breach. 

21 (c) APPLICATION OF REQUIREMENTS FOR TIMELI22 NESS, METHOD, AND CONTENT OF NOTIFICATIONS.— 

23 Subsections (c), (d), (e), and (f) of section 13402 shall 

24 apply to a notification required under subsection (a) and 

25 a vendor of personal health records, an entity described 


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1 in subsection (a) and a third party service provider de2 scribed in subsection (b), with respect to a breach of secu3 rity under subsection (a) of unsecured PHR identifiable 

4 health information in such records maintained or offered 

5 by such vendor, in a manner specified by the Federal 

6 Trade Commission. 

7 (d) NOTIFICATION OF THE SECRETARY.—Upon re8 ceipt of a notification of a breach of security under sub9 section (a)(2), the Federal Trade Commission shall notify 

10 the Secretary of such breach. 

11 (e) ENFORCEMENT.—A violation of subsection (a) or 

12 (b) shall be treated as an unfair and deceptive act or prac13 tice in violation of a regulation under section 18(a)(1)(B) 

14 of the Federal Trade Commission Act (15 U.S.C. 

15 57a(a)(1)(B)) regarding unfair or deceptive acts or prac16 tices. 

17 (f) DEFINITIONS.—For purposes of this section: 

18 (1) BREACH OF SECURITY.—The term ‘‘breach 

19 of security’’ means, with respect to unsecured PHR 

20 identifiable health information of an individual in a 

21 personal health record, acquisition of such informa22 tion without the authorization of the individual. 

23 (2) PHR IDENTIFIABLE HEALTH INFORMA24 TION.—The term ‘‘PHR identifiable health informa25 tion’’ means individually identifiable health informaVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00367 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 tion, as defined in section 1171(6) of the Social Se2 curity Act (42 U.S.C. 1320d(6)), and includes, with 

3 respect to an individual, information— 

4 (A) that is provided by or on behalf of the 

5 individual; and 

6 (B) that identifies the individual or with 

7 respect to which there is a reasonable basis to 

8 believe that the information can be used to 

9 identify the individual. 

10 (3) UNSECURED PHR IDENTIFIABLE HEALTH

11 INFORMATION.— 

12 (A) IN GENERAL.—Subject to subpara13 graph (B), the term ‘‘unsecured PHR identifi14 able health information’’ means PHR identifi15 able health information that is not protected 

16 through the use of a technology or methodology 

17 specified by the Secretary in the guidance 

18 issued under section 13402(h)(2). 

19 (B) EXCEPTION IN CASE TIMELY GUID20 ANCE NOT ISSUED.—In the case that the Sec21 retary does not issue guidance under section 

22 13402(h)(2) by the date specified in such sec23 tion, for purposes of this section, the term ‘‘un24 secured PHR identifiable health information’’ 

25 shall mean PHR identifiable health information 


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1 that is not secured by a technology standard 

2 that renders protected health information unus3 able, unreadable, or indecipherable to unauthor4 ized individuals and that is developed or en5 dorsed by a standards developing organization 

6 that is accredited by the American National 

7 Standards Institute. 

8 (g) REGULATIONS; EFFECTIVE DATE; SUNSET.— 

9 (1) REGULATIONS; EFFECTIVE DATE.—To 

10 carry out this section, the Secretary of Health and 

11 Human Services shall promulgate interim final regu12 lations by not later than the date that is 180 days 

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

14 provisions of this section shall apply to breaches of 

15 security that are discovered on or after the date that 

16 is 30 days after the date of publication of such in17 terim final regulations. 

18 (2) SUNSET.—The provisions of this section 

19 shall not apply to breaches of security occurring on 

20 or after the earlier of the following the dates: 

21 (A) The date on which a standard relating 

22 to requirements for entities that are not covered 

23 entities that includes requirements relating to 

24 breach notification has been promulgated by the 

25 Secretary. 


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1 (B) The date on which a standard relating 

2 to requirements for entities that are not covered 

3 entities that includes requirements relating to 

4 breach notification has been promulgated by the 

5 Federal Trade Commission and has taken ef6 fect. 

7 SEC. 13408. BUSINESS ASSOCIATE CONTRACTS REQUIRED 

8 FOR CERTAIN ENTITIES. 

9 Each organization, with respect to a covered entity, 

10 that provides data transmission of protected health infor11 mation to such entity (or its business associate) and that 

12 requires access on a routine basis to such protected health 

13 information, such as a Health Information Exchange Or14 ganization, Regional Health Information Organization, E15 prescribing Gateway, or each vendor that contracts with 

16 a covered entity to allow that covered entity to offer a per17 sonal health record to patients as part of its electronic 

18 health record, is required to enter into a written contract 

19 (or other written arrangement) described in section 

20 164.502(e)(2) of title 45, Code of Federal Regulations and 

21 a written contract (or other arrangement) described in 

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

23 be treated as a business associate of the covered entity 

24 for purposes of the provisions of this subtitle and subparts 

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1 tions, as such provisions are in effect as of the date of 

2 enactment of this title. 

3 SEC. 13409. CLARIFICATION OF APPLICATION OF WRONG4 FUL DISCLOSURES CRIMINAL PENALTIES. 

5 Section 1177(a) of the Social Security Act (42 U.S.C. 

6 1320d–6(a)) is amended by adding at the end the fol7 lowing new sentence: ‘‘For purposes of the previous sen8 tence, a person (including an employee or other individual) 

9 shall be considered to have obtained or disclosed individ10 ually identifiable health information in violation of this 

11 part if the information is maintained by a covered entity 

12 (as defined in the HIPAA privacy regulation described in 

13 section 1180(b)(3)) and the individual obtained or dis14 closed such information without authorization.’’. 

15 SEC. 13410. IMPROVED ENFORCEMENT. 

16 (a) IN GENERAL.—Section 1176 of the Social Secu17 rity Act (42 U.S.C. 1320d-5) is amended— 

18 (1) in subsection (b)(1), by striking ‘‘the act 

19 constitutes an offense punishable under section 

20 1177’’ and inserting ‘‘a penalty has been imposed 

21 under section 1177 with respect to such act’’; and 

22 (2) by adding at the end the following new sub23 section: 

24 ‘‘(c) NONCOMPLIANCE DUE TO WILLFUL NE25 GLECT.— 


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1 ‘‘(1) IN GENERAL.—A violation of a provision 

2 of this part due to willful neglect is a violation for 

3 which the Secretary is required to impose a penalty 

4 under subsection (a)(1). 

5 ‘‘(2) REQUIRED INVESTIGATION.—For purposes 

6 of paragraph (1), the Secretary shall formally inves7 tigate any complaint of a violation of a provision of 

8 this part if a preliminary investigation of the facts 

9 of the complaint indicate such a possible violation 

10 due to willful neglect.’’. 

11 (b) EFFECTIVE DATE; REGULATIONS.— 

12 (1) The amendments made by subsection (a) 

13 shall apply to penalties imposed on or after the date 

14 that is 24 months after the date of the enactment 

15 of this title. 

16 (2) Not later than 18 months after the date of 

17 the enactment of this title, the Secretary of Health 

18 and Human Services shall promulgate regulations to 

19 implement such amendments. 

20 (c) DISTRIBUTION OF CERTAIN CIVIL MONETARY

21 PENALTIES COLLECTED.— 

22 (1) IN GENERAL.—Subject to the regulation 

23 promulgated pursuant to paragraph (3), any civil 

24 monetary penalty or monetary settlement collected 

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1 title or section 1176 of the Social Security Act (42 

2 U.S.C. 1320d-5) insofar as such section relates to 

3 privacy or security shall be transferred to the Office 

4 of Civil Rights of the Department of Health and 

5 Human Services to be used for purposes of enforcing 

6 the provisions of this subtitle and subparts C and E 

7 of part 164 of title 45, Code of Federal Regulations, 

8 as such provisions are in effect as of the date of en9 actment of this Act. 

10 (2) GAO REPORT.—Not later than 18 months 

11 after the date of the enactment of this title, the 

12 Comptroller General shall submit to the Secretary a 

13 report including recommendations for a methodology 

14 under which an individual who is harmed by an act 

15 that constitutes an offense referred to in paragraph 

16 (1) may receive a percentage of any civil monetary 

17 penalty or monetary settlement collected with re18 spect to such offense. 

19 (3) ESTABLISHMENT OF METHODOLOGY TO

20 DISTRIBUTE PERCENTAGE OF CMPS COLLECTED TO

21 HARMED INDIVIDUALS.—Not later than 3 years 

22 after the date of the enactment of this title, the Sec23 retary shall establish by regulation and based on the 

24 recommendations submitted under paragraph (2), a 

25 methodology under which an individual who is 


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1 harmed by an act that constitutes an offense re2 ferred to in paragraph (1) may receive a percentage 

3 of any civil monetary penalty or monetary settlement 

4 collected with respect to such offense. 

5 (4) APPLICATION OF METHODOLOGY.—The 

6 methodology under paragraph (3) shall be applied 

7 with respect to civil monetary penalties or monetary 

8 settlements imposed on or after the effective date of 

9 the regulation. 

10 (d) TIERED INCREASE IN AMOUNT OF CIVIL MONE11 TARY PENALTIES.— 

12 (1) IN GENERAL.—Section 1176(a)(1) of the 

13 Social Security Act (42 U.S.C. 1320d-5(a)(1)) is 

14 amended by striking ‘‘who violates a provision of 

15 this part a penalty of not more than’’ and all that 

16 follows and inserting the following: ‘‘who violates a 

17 provision of this part— 

18 ‘‘(A) in the case of a violation of such pro19 vision in which it is established that the person 

20 did not know (and by exercising reasonable dili21 gence would not have known) that such person 

22 violated such provision, a penalty for each such 

23 violation of an amount that is at least the 

24 amount described in paragraph (3)(A) but not 


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1 to exceed the amount described in paragraph 

2 (3)(D); 

3 ‘‘(B) in the case of a violation of such pro4 vision in which it is established that the viola5 tion was due to reasonable cause and not to 

6 willful neglect, a penalty for each such violation 

7 of an amount that is at least the amount de8 scribed in paragraph (3)(B) but not to exceed 

9 the amount described in paragraph (3)(D); and 

10 ‘‘(C) in the case of a violation of such pro11 vision in which it is established that the viola12 tion was due to willful neglect— 

13 ‘‘(i) if the violation is corrected as de14 scribed in subsection (b)(3)(A), a penalty 

15 in an amount that is at least the amount 

16 described in paragraph (3)(C) but not to 

17 exceed the amount described in paragraph 

18 (3)(D); and 

19 ‘‘(ii) if the violation is not corrected 

20 as described in such subsection, a penalty 

21 in an amount that is at least the amount 

22 described in paragraph (3)(D). 

23 ‘‘In determining the amount of a penalty under 

24 this section for a violation, the Secretary shall 

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1 tent of the violation and the nature and extent 

2 of the harm resulting from such violation.’’. 

3 (2) TIERS OF PENALTIES DESCRIBED.—Section 

4 1176(a) of such Act (42 U.S.C. 1320d-5(a)) is fur5 ther amended by adding at the end the following 

6 new paragraph: 

7 ‘‘(3) TIERS OF PENALTIES DESCRIBED.—For 

8 purposes of paragraph (1), with respect to a viola9 tion by a person of a provision of this part— 

10 ‘‘(A) the amount described in this subpara11 graph is $100 for each such violation, except 

12 that the total amount imposed on the person 

13 for all such violations of an identical require14 ment or prohibition during a calendar year may 

15 not exceed $25,000; 

16 ‘‘(B) the amount described in this subpara17 graph is $1,000 for each such violation, except 

18 that the total amount imposed on the person 

19 for all such violations of an identical require20 ment or prohibition during a calendar year may 

21 not exceed $100,000; 

22 ‘‘(C) the amount described in this subpara23 graph is $10,000 for each such violation, except 

24 that the total amount imposed on the person 

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1 ment or prohibition during a calendar year may 

2 not exceed $250,000; and 

3 ‘‘(D) the amount described in this sub4 paragraph is $50,000 for each such violation, 

5 except that the total amount imposed on the 

6 person for all such violations of an identical re7 quirement or prohibition during a calendar year 

8 may not exceed $1,500,000.’’. 

9 (3) CONFORMING AMENDMENTS.—Section 

10 1176(b) of such Act (42 U.S.C. 1320d-5(b)) is 

11 amended— 

12 (A) by striking paragraph (2) and redesig13 nating paragraphs (3) and (4) as paragraphs 

14 (2) and (3), respectively; and 

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

16 (i) in subparagraph (A), by striking 

17 ‘‘in subparagraph (B), a penalty may not 

18 be imposed under subsection (a) if’’ and all 

19 that follows through ‘‘the failure to comply 

20 is corrected’’ and inserting ‘‘in subpara21 graph (B) or subsection (a)(1)(C), a pen22 alty may not be imposed under subsection 

23 (a) if the failure to comply is corrected’’; 

24 and 


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1 (ii) in subparagraph (B), by striking 

2 ‘‘(A)(ii)’’ and inserting ‘‘(A)’’ each place it 

3 appears. 

4 (4) EFFECTIVE DATE.—The amendments made 

5 by this subsection shall apply to violations occurring 

6 after the date of the enactment of this title. 

7 (e) ENFORCEMENT THROUGH STATE ATTORNEYS

8 GENERAL.— 

9 (1) IN GENERAL.—Section 1176 of the Social 

10 Security Act (42 U.S.C. 1320d–5) is amended by 

11 adding at the end the following new subsection: 

12 ‘‘(d) ENFORCEMENT BY STATE ATTORNEYS GEN13 ERAL.— 

14 ‘‘(1) CIVIL ACTION.—Except as provided in 

15 subsection (b), in any case in which the attorney 

16 general of a State has reason to believe that an in17 terest of one or more of the residents of that State 

18 has been or is threatened or adversely affected by 

19 any person who violates a provision of this part, the 

20 attorney general of the State, as parens patriae, may 

21 bring a civil action on behalf of such residents of the 

22 State in a district court of the United States of ap23 propriate jurisdiction— 

24 ‘‘(A) to enjoin further such violation by the 

25 defendant; or 


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

2 residents of the State, in an amount equal to 

3 the amount determined under paragraph (2). 

4 ‘‘(2) STATUTORY DAMAGES.— 

5 ‘‘(A) IN GENERAL.—For purposes of para6 graph (1)(B), the amount determined under 

7 this paragraph is the amount calculated by mul8 tiplying the number of violations by up to $100. 

9 For purposes of the preceding sentence, in the 

10 case of a continuing violation, the number of 

11 violations shall be determined consistent with 

12 the HIPAA privacy regulations (as defined in 

13 section 1180(b)(3)) for violations of subsection 

14 (a). 

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

16 damages imposed on the person for all viola17 tions of an identical requirement or prohibition 

18 during a calendar year may not exceed $25,000. 

19 ‘‘(C) REDUCTION OF DAMAGES.—In as20 sessing damages under subparagraph (A), the 

21 court may consider the factors the Secretary 

22 may consider in determining the amount of a 

23 civil money penalty under subsection (a) under 

24 the HIPAA privacy regulations. 


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1 ‘‘(3) ATTORNEY FEES.—In the case of any suc2 cessful action under paragraph (1), the court, in its 

3 discretion, may award the costs of the action and 

4 reasonable attorney fees to the State. 

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

6 serve prior written notice of any action under para7 graph (1) upon the Secretary and provide the Sec8 retary with a copy of its complaint, except in any 

9 case in which such prior notice is not feasible, in 

10 which case the State shall serve such notice imme11 diately upon instituting such action. The Secretary 

12 shall have the right— 

13 ‘‘(A) to intervene in the action; 

14 ‘‘(B) upon so intervening, to be heard on 

15 all matters arising therein; and 

16 ‘‘(C) to file petitions for appeal. 

17 ‘‘(5) CONSTRUCTION.—For purposes of bring18 ing any civil action under paragraph (1), nothing in 

19 this section shall be construed to prevent an attor20 ney general of a State from exercising the powers 

21 conferred on the attorney general by the laws of that 

22 State. 

23 ‘‘(6) VENUE; SERVICE OF PROCESS.— 

24 ‘‘(A) VENUE.—Any action brought under 

25 paragraph (1) may be brought in the district 


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1 court of the United States that meets applicable 

2 requirements relating to venue under section 

3 1391 of title 28, United States Code. 

4 ‘‘(B) SERVICE OF PROCESS.—In an action 

5 brought under paragraph (1), process may be 

6 served in any district in which the defendant— 

7 ‘‘(i) is an inhabitant; or 

8 ‘‘(ii) maintains a physical place of 

9 business. 

10 ‘‘(7) LIMITATION ON STATE ACTION WHILE

11 FEDERAL ACTION IS PENDING.—If the Secretary has 

12 instituted an action against a person under sub13 section (a) with respect to a specific violation of this 

14 part, no State attorney general may bring an action 

15 under this subsection against the person with re16 spect to such violation during the pendency of that 

17 action. 

18 ‘‘(8) APPLICATION OF CMP STATUTE OF LIMI19 TATION.—A civil action may not be instituted with 

20 respect to a violation of this part unless an action 

21 to impose a civil money penalty may be instituted 

22 under subsection (a) with respect to such violation 

23 consistent with the second sentence of section 

24 1128A(c)(1).’’. 


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1 (2) CONFORMING AMENDMENTS.—Subsection 

2 (b) of such section, as amended by subsection (d)(3), 

3 is amended— 

4 (A) in paragraph (1), by striking ‘‘A pen5 alty may not be imposed under subsection (a)’’ 

6 and inserting ‘‘No penalty may be imposed 

7 under subsection (a) and no damages obtained 

8 under subsection (d)’’; 

9 (B) in paragraph (2)(A)— 

10 (i) after ‘‘subsection (a)(1)(C),’’, by 

11 striking ‘‘a penalty may not be imposed 

12 under subsection (a)’’ and inserting ‘‘no 

13 penalty may be imposed under subsection 

14 (a) and no damages obtained under sub15 section (d)’’; and 

16 (ii) in clause (ii), by inserting ‘‘or 

17 damages’’ after ‘‘the penalty’’; 

18 (C) in paragraph (2)(B)(i), by striking 

19 ‘‘The period’’ and inserting ‘‘With respect to 

20 the imposition of a penalty by the Secretary 

21 under subsection (a), the period’’; and 

22 (D) in paragraph (3), by inserting ‘‘and 

23 any damages under subsection (d)’’ after ‘‘any 

24 penalty under subsection (a)’’. 


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1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to violations occurring 

3 after the date of the enactment of this Act. 

4 (f) ALLOWING CONTINUED USE OF CORRECTIVE AC5 TION.—Such section is further amended by adding at the 

6 end the following new subsection: 

7 ‘‘(e) ALLOWING CONTINUED USE OF CORRECTIVE

8 ACTION.—Nothing in this section shall be construed as 

9 preventing the Office of Civil Rights of the Department 

10 of Health and Human Services from continuing, in its dis11 cretion, to use corrective action without a penalty in cases 

12 where the person did not know (and by exercising reason13 able diligence would not have known) of the violation in14 volved.’’. 

15 SEC. 13411. AUDITS. 

16 The Secretary shall provide for periodic audits to en17 sure that covered entities and business associates that are 

18 subject to the requirements of this subtitle and subparts 

19 C and E of part 164 of title 45, Code of Federal Regula20 tions, as such provisions are in effect as of the date of 

21 enactment of this Act, comply with such requirements. 


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1 PART II—RELATIONSHIP TO OTHER LAWS; REGU2 LATORY REFERENCES; EFFECTIVE DATE; RE3 PORTS 

4 SEC. 13421. RELATIONSHIP TO OTHER LAWS. 

5 (a) APPLICATION OF HIPAA STATE PREEMPTION.— 

6 Section 1178 of the Social Security Act (42 U.S.C. 

7 1320d–7) shall apply to a provision or requirement under 

8 this subtitle in the same manner that such section applies 

9 to a provision or requirement under part C of title XI of 

10 such Act or a standard or implementation specification 

11 adopted or established under sections 1172 through 1174 

12 of such Act. 

13 (b) HEALTH INSURANCE PORTABILITY AND AC14 COUNTABILITY ACT.—The standards governing the pri15 vacy and security of individually identifiable health infor16 mation promulgated by the Secretary under sections 

17 262(a) and 264 of the Health Insurance Portability and 

18 Accountability Act of 1996 shall remain in effect to the 

19 extent that they are consistent with this subtitle. The Sec20 retary shall by rule amend such Federal regulations as re21 quired to make such regulations consistent with this sub22 title. In carrying out the preceding sentence, the Secretary 

23 shall revise the definition of ‘‘psychotherapy notes’’ in sec24 tion 164.501 of title 45, Code of Federal Regulations, to 

25 include test data that is related to direct responses, scores, 

26 items, forms, protocols, manuals, or other materials that 


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1 are part of a mental health evaluation, as determined by 

2 the mental health professional providing treatment or 

3 evaluation. 

4 SEC. 13422. REGULATORY REFERENCES. 

5 Each reference in this subtitle to a provision of the 

6 Code of Federal Regulations refers to such provision as 

7 in effect on the date of the enactment of this title (or to 

8 the most recent update of such provision). 

9 SEC. 13423. EFFECTIVE DATE. 

10 Except as otherwise specifically provided, the provi11 sions of part I shall take effect on the date that is 12 

12 months after the date of the enactment of this title. 

13 SEC. 13424. STUDIES, REPORTS, GUIDANCE. 

14 (a) REPORT ON COMPLIANCE.— 

15 (1) IN GENERAL.—For the first year beginning 

16 after the date of the enactment of this Act and an17 nually thereafter, the Secretary shall prepare and 

18 submit to the Committee on Health, Education, 

19 Labor, and Pensions of the Senate and the Com20 mittee on Ways and Means and the Committee on 

21 Energy and Commerce of the House of Representa22 tives a report concerning complaints of alleged viola23 tions of law, including the provisions of this subtitle 

24 as well as the provisions of subparts C and E of part 

25 164 of title 45, Code of Federal Regulations, (as 


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1 such provisions are in effect as of the date of enact2 ment of this Act) relating to privacy and security of 

3 health information that are received by the Secretary 

4 during the year for which the report is being pre5 pared. Each such report shall include, with respect 

6 to such complaints received during the year— 

7 (A) the number of such complaints; 

8 (B) the number of such complaints re9 solved informally, a summary of the types of 

10 such complaints so resolved, and the number of 

11 covered entities that received technical assist12 ance from the Secretary during such year in 

13 order to achieve compliance with such provi14 sions and the types of such technical assistance 

15 provided; 

16 (C) the number of such complaints that 

17 have resulted in the imposition of civil monetary 

18 penalties or have been resolved through mone19 tary settlements, including the nature of the 

20 complaints involved and the amount paid in 

21 each penalty or settlement; 

22 (D) the number of compliance reviews con23 ducted and the outcome of each such review; 

24 (E) the number of subpoenas or inquiries 

25 issued; 


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1 (F) the Secretary’s plan for improving 

2 compliance with and enforcement of such provi3 sions for the following year; and 

4 (G) the number of audits performed and a 

5 summary of audit findings pursuant to section 

6 13411. 

7 (2) AVAILABILITY TO PUBLIC.—Each report 

8 under paragraph (1) shall be made available to the 

9 public on the Internet website of the Department of 

10 Health and Human Services. 

11 (b) STUDY AND REPORT ON APPLICATION OF PRI12 VACY AND SECURITY REQUIREMENTS TO NON-HIPAA 

13 COVERED ENTITIES.— 

14 (1) STUDY.—Not later than one year after the 

15 date of the enactment of this title, the Secretary, in 

16 consultation with the Federal Trade Commission, 

17 shall conduct a study, and submit a report under 

18 paragraph (2), on privacy and security requirements 

19 for entities that are not covered entities or business 

20 associates as of the date of the enactment of this 

21 title, including— 

22 (A) requirements relating to security, pri23 vacy, and notification in the case of a breach of 

24 security or privacy (including the applicability 

25 of an exemption to notification in the case of 


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1 individually identifiable health information that 

2 has been rendered unusable, unreadable, or in3 decipherable through technologies or methodolo4 gies recognized by appropriate professional or5 ganization or standard setting bodies to provide 

6 effective security for the information) that 

7 should be applied to— 

8 (i) vendors of personal health records; 

9 (ii) entities that offer products or 

10 services through the website of a vendor of 

11 personal health records; 

12 (iii) entities that are not covered enti13 ties and that offer products or services 

14 through the websites of covered entities 

15 that offer individuals personal health 

16 records; 

17 (iv) entities that are not covered enti18 ties and that access information in a per19 sonal health record or send information to 

20 a personal health record; and 

21 (v) third party service providers used 

22 by a vendor or entity described in clause 

23 (i), (ii), (iii), or (iv) to assist in providing 

24 personal health record products or services; 


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1 (B) a determination of which Federal gov2 ernment agency is best equipped to enforce 

3 such requirements recommended to be applied 

4 to such vendors, entities, and service providers 

5 under subparagraph (A); and 

6 (C) a timeframe for implementing regula7 tions based on such findings. 

8 (2) REPORT.—The Secretary shall submit to 

9 the Committee on Finance, the Committee on 

10 Health, Education, Labor, and Pensions, and the 

11 Committee on Commerce of the Senate and the 

12 Committee on Ways and Means and the Committee 

13 on Energy and Commerce of the House of Rep14 resentatives a report on the findings of the study 

15 under paragraph (1) and shall include in such report 

16 recommendations on the privacy and security re17 quirements described in such paragraph. 

18 (c) GUIDANCE ON IMPLEMENTATION SPECIFICATION

19 TO DE-IDENTIFY PROTECTED HEALTH INFORMATION.— 

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

21 of this title, the Secretary shall, in consultation with stake22 holders, issue guidance on how best to implement the re23 quirements for the de-identification of protected health in24 formation under section 164.514(b) of title 45, Code of 

25 Federal Regulations. 


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1 (d) GAO REPORT ON TREATMENT DISCLOSURES.— 

2 Not later than one year after the date of the enactment 

3 of this title, the Comptroller General of the United States 

4 shall submit to the Committee on Health, Education, 

5 Labor, and Pensions of the Senate and the Committee on 

6 Ways and Means and the Committee on Energy and Com7 merce of the House of Representatives a report on the 

8 best practices related to the disclosure among health care 

9 providers of protected health information of an individual 

10 for purposes of treatment of such individual. Such report 

11 shall include an examination of the best practices imple12 mented by States and by other entities, such as health 

13 information exchanges and regional health information or14 ganizations, an examination of the extent to which such 

15 best practices are successful with respect to the quality 

16 of the resulting health care provided to the individual and 

17 with respect to the ability of the health care provider to 

18 manage such best practices, and an examination of the 

19 use of electronic informed consent for disclosing protected 

20 health information for treatment, payment, and health 

21 care operations. 


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1 TITLE XIV—STATE FISCAL STABILIZATION 

2 DEPARTMENT OF EDUCATION 

3 STATE FISCAL STABILIZATION FUND

4 For necessary expenses for a State Fiscal Stabiliza5 tion Fund, $79,000,000,000, which shall be administered 

6 by the Department of Education, and shall be available 

7 through September 30, 2010. 

8 GENERAL PROVISIONS—THIS TITLE 

9 SEC. 1401. ALLOCATIONS. 

10 (a) OUTLYING AREAS.—The Secretary of Education 

11 shall first allocate one-half of 1 percent to the outlying 

12 areas on the basis of their respective needs, as determined 

13 by the Secretary, for activities consistent with this title 

14 under such terms and conditions as the Secretary may de15 termine. 

16 (b) ADMINISTRATION AND OVERSIGHT.—The Sec17 retary may reserve up to $25,000,000 for administration 

18 and oversight of this title, including for program evalua19 tion. 

20 (c) RESERVATION FOR ADDITIONAL PROGRAMS.— 

21 After reserving funds under subsections (a) and (b), the 

22 Secretary shall reserve $15,000,000,000 for grants under 

23 sections 1406 and 1407. 

24 (d) STATE ALLOCATIONS.—After carrying out sub25 sections (a), (b), and (c), the Secretary shall allocate the 


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1 remaining funds made available to carry out this title to 

2 the States as follows: 

3 (1) 61 percent on the basis of their relative 

4 population of individuals aged 5 through 24. 

5 (2) 39 percent on the basis of their relative 

6 total population. 

7 (e) STATE GRANTS.—From funds allocated under 

8 subsection (d), the Secretary shall make grants to the 

9 Governor of each State. 

10 (f) REALLOCATION.—The Governor shall return to 

11 the Secretary any funds received under subsection (e) that 

12 the Governor does not obligate within 1 year of receiving 

13 a grant, and the Secretary shall reallocate such funds to 

14 the remaining States in accordance with subsection (d). 

15 SEC. 1402. STATE USES OF FUNDS. 

16 (a) EDUCATION FUND.— 

17 (1) IN GENERAL.—The Governor shall use at 

18 least 61 percent of the State’s allocation under sec19 tion 1401 for the support of elementary, secondary, 

20 and postsecondary education and, as applicable, 

21 early childhood education programs and services. 

22 (2) RESTORING 2008 STATE SUPPORT FOR EDU23 CATION.— 

24 (A) IN GENERAL.—The Governor shall 

25 first use the funds described in paragraph (1)— 


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1 (i) to provide the amount of funds, 

2 through the State’s principal elementary 

3 and secondary funding formula, that is 

4 needed to restore State support for elemen5 tary and secondary education to the fiscal 

6 year 2008 level; and where applicable, to 

7 allow existing State formula increases for 

8 fiscal years 2009, 2010, and 2011 to be 

9 implemented and allow funding for phasing 

10 in State equity and adequacy adjustments 

11 that were enacted prior to July 1, 2008; 

12 and 

13 (ii) to provide the amount of funds to 

14 public institutions of higher education in 

15 the State that is needed to restore State 

16 support for postsecondary education to the 

17 fiscal year 2008 level. 

18 (B) SHORTFALL.—If the Governor deter19 mines that the amount of funds available under 

20 paragraph (1) is insufficient to restore State 

21 support for education to the levels described in 

22 clauses (i) and (ii) of subparagraph (A), the 

23 Governor shall allocate those funds between 

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1 fall in State support for the education sectors 

2 described in those clauses. 

3 (3) SUBGRANTS TO IMPROVE BASIC PROGRAMS

4 OPERATED BY LOCAL EDUCATIONAL AGENCIES.— 

5 After carrying out paragraph (2), the Governor shall 

6 use any funds remaining under paragraph (1) to 

7 provide local educational agencies in the State with 

8 subgrants based on their relative shares of funding 

9 under part A of title I of the Elementary and Sec10 ondary Education Act of 1965 (20 U.S.C. 6311 et 

11 seq.) for the most recent year for which data are 

12 available. 

13 (b) OTHER GOVERNMENT SERVICES.—The Governor 

14 may use up to 39 percent of the State’s allocation under 

15 section 1401 for public safety and other government serv16 ices, which may include assistance for elementary and sec17 ondary education and public institutions of higher edu18 cation. 

19 SEC. 1403. USES OF FUNDS BY LOCAL EDUCATIONAL AGEN20 CIES. 

21 (a) IN GENERAL.—A local educational agency that 

22 receives funds under this title may use the funds for any 

23 activity authorized by the Elementary and Secondary Edu24 cation Act of 1965 (20 U.S.C. 6301 et seq.) (‘‘ESEA’’), 

25 the Individuals with Disabilities Education Act (20 U.S.C. 


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1 1400 et seq.) (‘‘IDEA’’), or the Carl D. Perkins Career 

2 and Technical Education Act of 2006 (20 U.S.C. 2301 

3 et seq.) (‘‘the Perkins Act’’). 

4 (b) PROHIBITION.—A local educational agency may 

5 not use funds received under this title for capital projects 

6 unless authorized by ESEA, IDEA, or the Perkins Act. 

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

8 EDUCATION. 

9 (a) IN GENERAL.—A public institution of higher edu10 cation that receives funds under this title shall use the 

11 funds for education and general expenditures, and in such 

12 a way as to mitigate the need to raise tuition and fees 

13 for in-State students. 

14 (b) PROHIBITION.—An institution of higher edu15 cation may not use funds received under this title to in16 crease its endowment. 

17 (c) ADDITIONAL PROHIBITION.—An institution of 

18 higher education may not use funds received under this 

19 title for construction, renovation, or facility repair. 

20 SEC. 1405. STATE APPLICATIONS. 

21 (a) IN GENERAL.—The Governor of a State desiring 

22 to receive an allocation under section 1401 shall submit 

23 an application at such time, in such manner, and con24 taining such information as the Secretary may reasonably 

25 require. 


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1 (b) APPLICATION.—The Governor shall— 

2 (1) include the assurances described in sub3 section (d); 

4 (2) provide baseline data that demonstrates the 

5 State’s current status in each of the areas described 

6 in such assurances; and 

7 (3) describe how the State intends to use its al8 location. 

9 (c) INCENTIVE GRANT APPLICATION.—The Governor 

10 of a State seeking a grant under section 1406 shall— 

11 (1) submit an application for consideration; 

12 (2) describe the status of the State’s progress 

13 in each of the areas described in subsection (d); 

14 (3) describe the achievement and graduation 

15 rates of public elementary and secondary school stu16 dents in the State, and the strategies the State is 

17 employing to help ensure that all subgroups of stu18 dents identified in 1111(b)(2) of ESEA in the State 

19 continue making progress toward meeting the 

20 State’s student academic achievement standards; 

21 (4) describe how the State would use its grant 

22 funding to improve student academic achievement in 

23 the State, including how it will allocate the funds to 

24 give priority to high-need schools and local edu25 cational agencies; and 


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1 (5) include a plan for evaluating its progress in 

2 closing achievement gaps. 

3 (d) ASSURANCES.—An application under subsection 

4 (b) shall include the following assurances: 

5 (1) MAINTENANCE OF EFFORT.— 

6 (A) ELEMENTARY AND SECONDARY EDU7 CATION.—The State will, in each of fiscal years 

8 2009 and 2010, maintain State support for ele9 mentary and secondary education at least at 

10 the level of such support in fiscal year 2006. 

11 (B) HIGHER EDUCATION.—The State will, 

12 in each of fiscal years 2009 and 2010, maintain 

13 State support for public institutions of higher 

14 education (not including support for capital 

15 projects or for research and development) at 

16 least at the level of such support in fiscal year 

17 2006. 

18 (2) ACHIEVING EQUITY IN TEACHER DISTRIBU19 TION.—The State will take action, including activi20 ties outlined in section 2113(c) of ESEA, to increase 

21 the number, and improve the distribution, of effec22 tive teachers and principals in high-poverty schools 

23 and local educational agencies throughout the State. 

24 (3) IMPROVING COLLECTION AND USE OF

25 DATA.—The State will establish a longitudinal data 


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1 system that includes the elements described in sec2 tion 6401(e)(2)(D) of the America COMPETES Act 

3 (20 U.S.C. 9871). 

4 (4) STANDARDS AND ASSESSMENTS.—The 

5 State— 

6 (A) will enhance the quality of academic 

7 assessments described in section 1111(b)(3) of 

8 ESEA (20 U.S.C. 6311(b)(3)) through activi9 ties such as those described in section 6112(a) 

10 of such Act (20 U.S.C. 7301a(a)); 

11 (B) will comply with the requirements of 

12 paragraphs (3)(C)(ix) and (6) of section 

13 1111(b) of ESEA (20 U.S.C. 6311(b)) and sec14 tion 612(a)(16) of IDEA (20 U.S.C. 

15 1412(a)(16)) related to the inclusion of children 

16 with disabilities and limited English proficient 

17 students in State assessments, the development 

18 of valid and reliable assessments for those stu19 dents, and the provision of accommodations 

20 that enable their participation in State assess21 ments; and 

22 (C) will take steps to improve State aca23 demic content standards and student academic 

24 achievement standards consistent with 


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1 6401(e)(1)(A)(ii) of the America COMPETES 

2 Act. 

3 (5) will ensure compliance with the require4 ments of section 1116(a)(7)(C)(iv) and section 

5 1116(a)(8)(B) with respect to schools identified 

6 under such sections. 

7 SEC. 1406. STATE INCENTIVE GRANTS. 

8 (a) IN GENERAL.—From the total amount reserved 

9 under section 1401(c) that is not used for section 1407, 

10 the Secretary shall, in fiscal year 2010, make grants to 

11 States that have made significant progress in meeting the 

12 objectives of paragraphs (2), (3), (4), and (5) of section 

13 1405(d). 

14 (b) BASIS FOR GRANTS.—The Secretary shall deter15 mine which States receive grants under this section, and 

16 the amount of those grants, on the basis of information 

17 provided in State applications under section 1405 and 

18 such other criteria as the Secretary determines appro19 priate. 

20 (c) SUBGRANTS TO LOCAL EDUCATIONAL AGEN21 CIES.—Each State receiving a grant under this section 

22 shall use at least 50 percent of the grant to provide local 

23 educational agencies in the State with subgrants based on 

24 their relative shares of funding under part A of title I of 

25 ESEA (20 U.S.C. 6311 et seq.) for the most recent year. 


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1 SEC. 1407. INNOVATION FUND. 

2 (a) IN GENERAL.— 

3 (1) ELIGIBLE ENTITY.—For the purposes of 

4 this section, the term ‘‘eligible entity’’ means— 

5 (A) A local educational agency; or 

6 (B) a partnership between a nonprofit or7 ganization and— 

8 (i) one or more local educational agen9 cies; 

10 (ii) or a consortium of schools. 

11 (2) PROGRAM ESTABLISHED.—From the total 

12 amount reserved under section 1401(c), the Sec13 retary may reserve up to $650,000,000 to establish 

14 an Innovation Fund, which shall consist of academic 

15 achievement awards that recognize eligible entities 

16 that meet the requirements described in subsection 

17 (b). 

18 (3) BASIS FOR AWARDS.—The Secretary shall 

19 make awards to eligible entities that have made sig20 nificant gains in closing the achievement gap as de21 scribed in subsection (b)(1)— 

22 (A) to allow such eligible entities to expand 

23 their work and serve as models for best prac24 tices; 


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1 (B) to allow such eligible entities to work 

2 in partnership with the private sector and the 

3 philanthropic community; and 

4 (C) to identify and document best practices 

5 that can be shared, and taken to scale based on 

6 demonstrated success. 

7 (b) ELIGIBILITY.—To be eligible for such an award, 

8 an eligible entity shall— 

9 (1) have significantly closed the achievement 

10 gaps between groups of students described in section 

11 1111(b)(2) of ESEA (20 U.S.C. 6311(b)(2)); 

12 (2) have exceeded the State’s annual measur13 able objectives consistent with such section 

14 1111(b)(2) for 2 or more consecutive years or have 

15 demonstrated success in significantly increasing stu16 dent academic achievement for all groups of stu17 dents described in such section through another 

18 measure, such as measures described in section 

19 1111(c)(2) of ESEA; 

20 (3) have made significant improvement in other 

21 areas, such as graduation rates or increased recruit22 ment and placement of high-quality teachers and 

23 school leaders, as demonstrated with meaningful 

24 data; and 


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1 (4) demonstrate that they have established 

2 partnerships with the private sector, which may in3 clude philanthropic organizations, and that the pri4 vate sector will provide matching funds in order to 

5 help bring results to scale. 

6 SEC. 1408. STATE REPORTS. 

7 A State receiving funds under this title shall submit 

8 a report to the Secretary, at such time and in such manner 

9 as the Secretary may require, that describes— 

10 (1) the uses of funds provided under this title 

11 within the State; 

12 (2) how the State distributed the funds it re13 ceived under this title; 

14 (3) the number of jobs that the Governor esti15 mates were saved or created with funds the State re16 ceived under this title; 

17 (4) tax increases that the Governor estimates 

18 were averted because of the availability of funds 

19 from this title; 

20 (5) the State’s progress in reducing inequities 

21 in the distribution of teachers, in implementing a 

22 State student longitudinal data system, and in devel23 oping and implementing valid and reliable assess24 ments for limited English proficient students and 

25 children with disabilities; 


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1 (6) the tuition and fee increases for in-State 

2 students imposed by public institutions of higher 

3 education in the State during the period of avail4 ability of funds under this title, and a description of 

5 any actions taken by the State to limit those in6 creases; and 

7 (7) the extent to which public institutions of 

8 higher education maintained, increased, or decreased 

9 enrollment of in-State students, including students 

10 eligible for Pell Grants or other need-based financial 

11 assistance. 

12 SEC. 1409. EVALUATION. 

13 The Comptroller General of the United States shall 

14 conduct evaluations of the programs under sections 1406 

15 and 1407 which shall include, but not be limited to, the 

16 criteria used for the awards made, the States selected for 

17 awards, award amounts, how each State used the award 

18 received, and the impact of this funding on the progress 

19 made toward closing achievement gaps. 

20 SEC. 1410. SECRETARY’S REPORT TO CONGRESS. 

21 The Secretary shall submit a report to the Committee 

22 on Education and Labor of the House of Representatives, 

23 the Committee on Health, Education, Labor, and Pen24 sions of the Senate, and the Committees on Appropria25 tions of the House of Representatives and of the Senate, 


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1 not less than 6 months following the submission of the 

2 State reports, that evaluates the information provided in 

3 the State reports under section 1408. 

4 SEC. 1411. PROHIBITION ON PROVISION OF CERTAIN AS5 SISTANCE. 

6 No recipient of funds under this title shall use such 

7 funds to provide financial assistance to students to attend 

8 private elementary or secondary schools, unless such funds 

9 are used to provide special education and related services 

10 to children with disabilities, as authorized by the Individ11 uals with Disabilities Education Act (20 U.S.C. 1400 et 

12 seq.). 

13 SEC. 1412. DEFINITIONS. 

14 Except as otherwise provided in this title, as used in 

15 this title— 

16 (1) the term ‘‘institution of higher education’’ 

17 has the meaning given such term in section 101 of 

18 the Higher Education Act of 1965 (20 U.S.C. 

19 1001); 

20 (2) the term ‘‘Secretary’’ means the Secretary 

21 of Education; 

22 (3) the term ‘‘State’’ means each of the 50 

23 States, the District of Columbia, and the Common24 wealth of Puerto Rico; and 


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1 (4) any other term that is defined in section 

2 9101 of ESEA (20 U.S.C. 7801) shall have the 

3 meaning given the term in such section. 

4 SEC. 1413. REGULATORY RELIEF. 

5 (a) WAIVER AUTHORITY.—Subject to subsections (b) 

6 and (c), the Secretary of Education may, as applicable, 

7 waive or modify, in order to ease fiscal burdens, any re8 quirement relating to the following: 

9 (1) Maintenance of effort. 

10 (2) The use of Federal funds to supplement, 

11 not supplant, non-Federal funds. 

12 (b) DURATION.—A waiver under this section shall be 

13 for fiscal years 2009 and 2010. 

14 (c) LIMITATIONS.— 

15 (1) RELATION TO IDEA.—Nothing in this sec16 tion shall be construed to permit the Secretary to 

17 waive or modify any provision of the Individuals 

18 with Disabilities Education Act (20 U.S.C. 1400 et 

19 seq.), except as described in a(1) and a(2). 

20 (2) MAINTENANCE OF EFFORT.—If the Sec21 retary grants a waiver or modification under this 

22 section waiving or modifying a requirement relating 

23 to maintenance of effort for fiscal years 2009 and 

24 2010, the level of effort required for fiscal year 2011 


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1 shall not be reduced because of the waiver or modi2 fication. 

3 TITLE XV—RECOVERY ACCOUNT4 ABILITY AND TRANSPARENCY 

5 BOARD AND RECOVERY INDE6 PENDENT ADVISORY PANEL 

7 SEC. 1501. DEFINITIONS. 

8 In this title: 

9 (1) AGENCY.—The term ‘‘agency’’ has the 

10 meaning given under section 551 of title 5, United 

11 States Code. 

12 (2) BOARD.—The term ‘‘Board’’ means the Re13 covery Accountability and Transparency Board es14 tablished in section 1511. 

15 (3) CHAIRPERSON.—The term ‘‘Chairperson’’ 

16 means the Chairperson of the Board. 

17 (4) COVERED FUNDS.—The term ‘‘covered 

18 funds’’ means any funds that are expended or obli19 gated— 

20 (A) from appropriations made under this 

21 Act; and 

22 (B) under any other authorities provided 

23 under this Act. 


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1 (5) PANEL.—The term ‘‘Panel’’ means the Re2 covery Independent Advisory Panel established in 

3 section 1531. 

4 Subtitle A—Recovery Account5 ability and Transparency Board 

6 SEC. 1511. ESTABLISHMENT OF THE RECOVERY ACCOUNT7 ABILITY AND TRANSPARENCY BOARD. 

8 There is established the Recovery Accountability and 

9 Transparency Board to coordinate and conduct oversight 

10 of covered funds to prevent fraud, waste, and abuse. 

11 SEC. 1512. COMPOSITION OF BOARD. 

12 (a) CHAIRPERSON.— 

13 (1) DESIGNATION OR APPOINTMENT.—The 

14 President shall— 

15 (A) designate the Deputy Director for 

16 Management of the Office of Management and 

17 Budget to serve as Chairperson of the Board; 

18 (B) designate another Federal officer who 

19 was appointed by the President to a position 

20 that required the advice and consent of the 

21 Senate, to serve as Chairperson of the Board; 

22 or 

23 (C) appoint an individual as the Chair24 person of the Board, by and with the advice 

25 and consent of the Senate. 


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1 (2) COMPENSATION.— 

2 (A) DESIGNATION OF FEDERAL OFFI3 CER.—If the President designates a Federal of4 ficer under paragraph (1)(A) or (B) to serve as 

5 Chairperson, that Federal officer may not re6 ceive additional compensation for services per7 formed as Chairperson. 

8 (B) APPOINTMENT OF NON-FEDERAL OF9 FICER.—If the President appoints an individual 

10 as Chairperson under paragraph (1)(C), that 

11 individual shall be compensated at the rate of 

12 basic pay prescribed for level IV of the Execu13 tive Schedule under section 5315 of title 5, 

14 United States Code. 

15 (b) MEMBERS.—The members of the Board shall in16 clude— 

17 (1) the Inspectors General of the Departments 

18 of Agriculture, Commerce, Education, Energy, 

19 Health and Human Services, Homeland Security, 

20 Justice, Transportation, Treasury, and the Treasury 

21 Inspector General for Tax Administration; and 

22 (2) any other Inspector General as designated 

23 by the President from any agency that expends or 

24 obligates covered funds. 


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1 SEC. 1513. FUNCTIONS OF THE BOARD. 

2 (a) FUNCTIONS.— 

3 (1) IN GENERAL.—The Board shall coordinate 

4 and conduct oversight of covered funds in order to 

5 prevent fraud, waste, and abuse. 

6 (2) SPECIFIC FUNCTIONS.—The functions of 

7 the Board shall include— 

8 (A) reviewing whether the reporting of con9 tracts and grants using covered funds meets ap10 plicable standards and specifies the purpose of 

11 the contract or grant and measures of perform12 ance; 

13 (B) reviewing whether competition require14 ments applicable to contracts and grants using 

15 covered funds have been satisfied; 

16 (C) auditing and investigating covered 

17 funds to determine whether wasteful spending, 

18 poor contract or grant management, or other 

19 abuses are occurring; 

20 (D) reviewing whether there are sufficient 

21 qualified acquisition and grant personnel over22 seeing covered funds; 

23 (E) reviewing whether personnel whose du24 ties involve acquisitions or grants made with 

25 covered funds receive adequate training; and 


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1 (F) reviewing whether there are appro2 priate mechanisms for interagency collaboration 

3 relating to covered funds. 

4 (b) REPORTS.— 

5 (1) QUARTERLY REPORTS.—The Board shall 

6 submit quarterly reports to the President and Con7 gress, including the Committees on Appropriations 

8 of the Senate and House of Representatives, summa9 rizing the findings of the Board and the findings of 

10 inspectors general of agencies. The Board may sub11 mit additional reports as appropriate. 

12 (2) ANNUAL REPORTS.—The Board shall sub13 mit annual reports to the President and the Com14 mittees on Appropriations of the Senate and House 

15 of Representatives, consolidating applicable quarterly 

16 reports on the use of covered funds. 

17 (3) PUBLIC AVAILABILITY.— 

18 (A) IN GENERAL.—All reports submitted 

19 under this subsection shall be made publicly 

20 available and posted on a website established by 

21 the Board. 

22 (B) REDACTIONS.—Any portion of a re23 port submitted under this subsection may be re24 dacted when made publicly available, if that 

25 portion would disclose information that is not 


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1 subject to disclosure under section 552 of title 

2 5, United States Code (commonly known as the 

3 Freedom of Information Act). 

4 (c) RECOMMENDATIONS.— 

5 (1) IN GENERAL.—The Board shall make rec6 ommendations to agencies on measures to prevent 

7 fraud, waste, and abuse relating to covered funds. 

8 (2) RESPONSIVE REPORTS.—Not later than 30 

9 days after receipt of a recommendation under para10 graph (1), an agency shall submit a report to the 

11 President, the congressional committees of jurisdic12 tion, including the Committees on Appropriations of 

13 the Senate and House of Representatives, and the 

14 Board on— 

15 (A) whether the agency agrees or disagrees 

16 with the recommendations; and 

17 (B) any actions the agency will take to im18 plement the recommendations. 

19 SEC. 1514. POWERS OF THE BOARD. 

20 (a) IN GENERAL.—The Board shall conduct, super21 vise, and coordinate audits and investigations by inspec22 tors general of agencies relating to covered funds. 

23 (b) AUDITS AND INVESTIGATIONS.—The Board 

24 may— 


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1 (1) conduct its own independent audits and in2 vestigations relating to covered funds; and 

3 (2) collaborate on audits and investigations re4 lating to covered funds with any inspector general of 

5 an agency. 

6 (c) AUTHORITIES.— 

7 (1) AUDITS AND INVESTIGATIONS.—In con8 ducting audits and investigations, the Board shall 

9 have the authorities provided under section 6 of the 

10 Inspector General Act of 1978 (5 U.S.C. App.). 

11 (2) STANDARDS AND GUIDELINES.—The Board 

12 shall carry out the powers under subsections (a) and 

13 (b) in accordance with section 4(b)(1) of the Inspec14 tor General Act of 1978 (5 U.S.C. App.). 

15 (d) PUBLIC HEARINGS.—The Board may hold public 

16 hearings and Board personnel may conduct investigative 

17 depositions. The head of each agency shall make all offi18 cers and employees of that agency available to provide tes19 timony to the Board and Board personnel. The Board may 

20 issue subpoenas to compel the testimony of persons who 

21 are not Federal officers or employees. Any such subpoenas 

22 may be enforced as provided under section 6 of the Inspec23 tor General Act of 1978 (5 U.S.C. App.). 

24 (e) CONTRACTS.—The Board may enter into con25 tracts to enable the Board to discharge its duties under 


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1 this subtitle, including contracts and other arrangements 

2 for audits, studies, analyses, and other services with public 

3 agencies and with private persons, and make such pay4 ments as may be necessary to carry out the duties of the 

5 Board. 

6 (f) TRANSFER OF FUNDS.—The Board may transfer 

7 funds appropriated to the Board for expenses to support 

8 administrative support services and audits or investiga9 tions of covered funds to any office of inspector general, 

10 the Office of Management and Budget, the General Serv11 ices Administration, and the Panel. 

12 SEC. 1515. EMPLOYMENT, PERSONNEL, AND RELATED AU13 THORITIES. 

14 (a) EMPLOYMENT AND PERSONNEL AUTHORITIES.— 

15 (1) IN GENERAL.— 

16 (A) AUTHORITIES.—Subject to paragraph 

17 (2), the Board may exercise the authorities of 

18 subsections (b) through (i) of section 3161 of 

19 title 5, United States Code (without regard to 

20 subsection (a) of that section). 

21 (B) APPLICATION.—For purposes of exer22 cising the authorities described under subpara23 graph (A), the term ‘‘Chairperson of the 

24 Board’’ shall be substituted for the term ‘‘head 

25 of a temporary organization’’. 


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1 (C) CONSULTATION.—In exercising the au2 thorities described under subparagraph (A), the 

3 Chairperson shall consult with members of the 

4 Board. 

5 (2) EMPLOYMENT AUTHORITIES.—In exercising 

6 the employment authorities under subsection (b) of 

7 section 3161 of title 5, United States Code, as pro8 vided under paragraph (1) of this subsection— 

9 (A) paragraph (2) of subsection (b) of sec10 tion 3161 of that title (relating to periods of 

11 appointments) shall not apply; and 

12 (B) no period of appointment may exceed 

13 the date on which the Board terminates under 

14 section 1521. 

15 (b) INFORMATION AND ASSISTANCE.— 

16 (1) IN GENERAL.—Upon request of the Board 

17 for information or assistance from any agency or 

18 other entity of the Federal Government, the head of 

19 such entity shall, insofar as is practicable and not in 

20 contravention of any existing law, furnish such infor21 mation or assistance to the Board, or an authorized 

22 designee. 

23 (2) REPORT OF REFUSALS.—Whenever infor24 mation or assistance requested by the Board is, in 

25 the judgment of the Board, unreasonably refused or 


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1 not provided, the Board shall report the cir2 cumstances to the congressional committees of juris3 diction, including the Committees on Appropriations 

4 of the Senate and House of Representatives, without 

5 delay. 

6 (c) ADMINISTRATIVE SUPPORT.—The General Serv7 ices Administration shall provide the Board with adminis8 trative support services, including the provision of office 

9 space and facilities. 

10 SEC. 1516. INDEPENDENCE OF INSPECTORS GENERAL. 

11 (a) INDEPENDENT AUTHORITY.—Nothing in this 

12 subtitle shall affect the independent authority of an in13 spector general to determine whether to conduct an audit 

14 or investigation of covered funds. 

15 (b) REQUESTS BY BOARD.—If the Board requests 

16 that an inspector general conduct or refrain from con17 ducting an audit or investigation and the inspector general 

18 rejects the request in whole or in part, the inspector gen19 eral shall, not later than 30 days after rejecting the re20 quest, submit a report to the Board, the head of the appli21 cable agency, and the congressional committees of juris22 diction, including the Committees on Appropriations of the 

23 Senate and House of Representatives. The report shall 

24 state the reasons that the inspector general has rejected 

25 the request in whole or in part. 


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1 SEC. 1517. COORDINATION WITH THE COMPTROLLER GEN2 ERAL AND STATE AUDITORS. 

3 The Board shall coordinate its oversight activities 

4 with the Comptroller General of the United States and 

5 State auditor generals. 

6 SEC. 1518. PROTECTING STATE AND LOCAL GOVERNMENT 

7 AND CONTRACTOR WHISTLEBLOWERS. 

8 (a) PROHIBITION OF REPRISALS.—An employee of 

9 any non-Federal employer receiving covered funds may not 

10 be discharged, demoted, or otherwise discriminated 

11 against as a reprisal for disclosing to the Board, an in12 spector general, the Comptroller General, a member of 

13 Congress, or a the head of a Federal agency, or their rep14 resentatives, information that the employee reasonably be15 lieves is evidence of— 

16 (1) gross mismanagement of an agency contract 

17 or grant relating to covered funds; 

18 (2) a gross waste of covered funds; 

19 (3) a substantial and specific danger to public 

20 health or safety; or 

21 (4) a violation of law related to an agency con22 tract (including the competition for or negotiation of 

23 a contract) or grant, awarded or issued relating to 

24 covered funds. 

25 (b) INVESTIGATION OF COMPLAINTS.— 


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1 (1) IN GENERAL.—A person who believes that 

2 the person has been subjected to a reprisal prohib3 ited by subsection (a) may submit a complaint to the 

4 appropriate inspector general. Unless the inspector 

5 general determines that the complaint is frivolous, 

6 the inspector general shall investigate the complaint 

7 and, upon completion of such investigation, submit 

8 a report of the findings of the investigation to the 

9 person, the person’s employer, the head of the ap10 propriate agency, and the Board. 

11 (2) TIME LIMITATIONS FOR ACTIONS.— 

12 (A) IN GENERAL.—Except as provided 

13 under subparagraph (B), the inspector general 

14 shall make a determination that a complaint is 

15 frivolous or submit a report under paragraph 

16 (1) within 180 days after receiving the com17 plaint. 

18 (B) EXTENSION.—If the inspector general 

19 is unable to complete an investigation in time to 

20 submit a report within the 180-day period spec21 ified under subparagraph (A) and the person 

22 submitting the complaint agrees to an extension 

23 of time, the inspector general shall submit a re24 port under paragraph (1) within such additional 

25 period of time as shall be agreed upon between 


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1 the inspector general and the person submitting 

2 the complaint. 

3 (c) REMEDY AND ENFORCEMENT AUTHORITY.— 

4 (1) AGENCY ACTION.—Not later than 30 days 

5 after receiving an inspector general report under 

6 subsection (b), the head of the agency concerned 

7 shall determine whether there is sufficient basis to 

8 conclude that the non-Federal employer has sub9 jected the complainant to a reprisal prohibited by 

10 subsection (a) and shall either issue an order deny11 ing relief or shall take 1 or more of the following ac12 tions: 

13 (A) Order the employer to take affirmative 

14 action to abate the reprisal. 

15 (B) Order the employer to reinstate the 

16 person to the position that the person held be17 fore the reprisal, together with the compensa18 tion (including back pay), employment benefits, 

19 and other terms and conditions of employment 

20 that would apply to the person in that position 

21 if the reprisal had not been taken. 

22 (C) Order the employer to pay the com23 plainant an amount equal to the aggregate 

24 amount of all costs and expenses (including at25 torneys’ fees and expert witnesses’ fees) that 


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1 were reasonably incurred by the complainant 

2 for, or in connection with, bringing the com3 plaint regarding the reprisal, as determined by 

4 the head of the agency. 

5 (2) CIVIL ACTION.—If the head of an agency 

6 issues an order denying relief under paragraph (1) 

7 or has not issued an order within 210 days after the 

8 submission of a complaint under subsection (b), or 

9 in the case of an extension of time under subsection 

10 (b)(2)(B), not later than 30 days after the expira11 tion of the extension of time, and there is no show12 ing that such delay is due to the bad faith of the 

13 complainant, the complainant shall be deemed to 

14 have exhausted all administrative remedies with re15 spect to the complaint, and the complainant may 

16 bring a de novo action at law or equity against the 

17 employer to seek compensatory damages and other 

18 relief available under this section in the appropriate 

19 district court of the United States, which shall have 

20 jurisdiction over such an action without regard to 

21 the amount in controversy. Such an action shall, at 

22 the request of either party to the action, be tried by 

23 the court with a jury. 

24 (3) EVIDENCE.—An inspector general deter25 mination and an agency head order denying relief 


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1 under paragraph (2) shall be admissible in evidence 

2 in any de novo action at law or equity brought in ac3 cordance with this subsection. 

4 (4) JUDICIAL ENFORCEMENT OF ORDER.— 

5 Whenever a person fails to comply with an order 

6 issued under paragraph (1), the head of the agency 

7 shall file an action for enforcement of such order in 

8 the United States district court for a district in 

9 which the reprisal was found to have occurred. In 

10 any action brought under this paragraph, the court 

11 may grant appropriate relief, including injunctive re12 lief and compensatory and exemplary damages. 

13 (5) JUDICIAL REVIEW.—Any person adversely 

14 affected or aggrieved by an order issued under para15 graph (1) may obtain review of the order’s conform16 ance with this subsection, and any regulations issued 

17 to carry out this section, in the United States court 

18 of appeals for a circuit in which the reprisal is al19 leged in the order to have occurred. No petition 

20 seeking such review may be filed more than 60 days 

21 after issuance of the order by the head of the agen22 cy. Review shall conform to chapter 7 of title 5, 

23 United States Code. 

24 (d) RULE OF CONSTRUCTION.—Nothing in this sec25 tion may be construed to authorize the discharge of, demoVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00420 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 tion of, or discrimination against an employee for a disclo2 sure other than a disclosure protected by subsection (a) 

3 or to modify or derogate from a right or remedy otherwise 

4 available to the employee. 

5 SEC. 1519. BOARD WEBSITE. 

6 (a) ESTABLISHMENT.—The Board shall establish and 

7 maintain a user-friendly, public-facing website to foster 

8 greater accountability and transparency in the use of cov9 ered funds. 

10 (b) PURPOSE.—The website established and main11 tained under subsection (a) shall be a portal or gateway 

12 to key information relating to this Act and provide connec13 tions to other Government websites with related informa14 tion. 

15 (c) CONTENT AND FUNCTION.—In establishing the 

16 website established and maintained under subsection (a), 

17 the Board shall ensure the following: 

18 (1) The website shall provide materials explain19 ing what this Act means for citizens. The materials 

20 shall be easy to understand and regularly updated. 

21 (2) The website shall provide accountability in22 formation, including a database of findings from au23 dits, inspectors general, and the Government Ac24 countability Office. 


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1 (3) The website shall provide data on relevant 

2 economic, financial, grant, and contract information 

3 in user-friendly visual presentations to enhance pub4 lic awareness of the use of covered funds. 

5 (4) The website shall provide detailed data on 

6 contracts awarded by the Government that expend 

7 covered funds, including information about the com8 petitiveness of the contracting process, notification 

9 of solicitations for contracts to be awarded, and in10 formation about the process that was used for the 

11 award of contracts. 

12 (5) The website shall include printable reports 

13 on covered funds obligated by month to each State 

14 and congressional district. 

15 (6) The website shall provide a means for the 

16 public to give feedback on the performance of con17 tracts that expend covered funds. 

18 (7) The website shall be enhanced and updated 

19 as necessary to carry out the purposes of this sub20 title. 

21 (d) WAIVER.—The Board may exclude posting con22 tractual or other information on the website on a case23 by-case basis when necessary to protect national security. 


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1 SEC. 1520. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated such sums 

3 as necessary to carry out this subtitle. 

4 SEC. 1521. TERMINATION OF THE BOARD. 

5 The Board shall terminate on September 30, 2012. 

6 Subtitle B—Recovery Independent 

7 Advisory Panel 

8 SEC. 1531. ESTABLISHMENT OF RECOVERY INDEPENDENT 

9 ADVISORY PANEL. 

10 (a) ESTABLISHMENT.—There is established the Re11 covery Independent Advisory Panel. 

12 (b) MEMBERSHIP.—The Panel shall be composed of 

13 5 members who shall be appointed by the President. 

14 (c) QUALIFICATIONS.—Members shall be appointed 

15 on the basis of expertise in economics, public finance, con16 tracting, accounting, or any other relevant field. 

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

18 the date on which all members of the Panel have been 

19 appointed, the Panel shall hold its first meeting. 

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

21 the Chairperson of the Panel. 

22 (f) QUORUM.—A majority of the members of the 

23 Panel shall constitute a quorum, but a lesser number of 

24 members may hold hearings. 


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1 (g) CHAIRPERSON AND VICE CHAIRPERSON.—The 

2 Panel shall select a Chairperson and Vice Chairperson 

3 from among its members. 

4 SEC. 1532. DUTIES OF THE PANEL. 

5 The Panel shall make recommendations to the Board 

6 on actions the Board could take to prevent fraud, waste, 

7 and abuse relating to covered funds. 

8 SEC. 1533. POWERS OF THE PANEL. 

9 (a) HEARINGS.—The Panel may hold such hearings, 

10 sit and act at such times and places, take such testimony, 

11 and receive such evidence as the Panel considers advisable 

12 to carry out this subtitle. 

13 (b) INFORMATION FROM FEDERAL AGENCIES.—The 

14 Panel may secure directly from any agency such informa15 tion as the Panel considers necessary to carry out this sub16 title. Upon request of the Chairperson of the Panel, the 

17 head of such agency shall furnish such information to the 

18 Panel. 

19 (c) POSTAL SERVICES.—The Panel may use the 

20 United States mails in the same manner and under the 

21 same conditions as agencies of the Federal Government. 

22 (d) GIFTS.—The Panel may accept, use, and dispose 

23 of gifts or donations of services or property. 


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1 SEC. 1534. PANEL PERSONNEL MATTERS. 

2 (a) COMPENSATION OF MEMBERS.—Each member of 

3 the Panel who is not an officer or employee of the Federal 

4 Government shall be compensated at a rate equal to the 

5 daily equivalent of the annual rate of basic pay prescribed 

6 for level IV of the Executive Schedule under section 5315 

7 of title 5, United States Code, for each day (including 

8 travel time) during which such member is engaged in the 

9 performance of the duties of the Panel. All members of 

10 the Panel who are officers or employees of the United 

11 States shall serve without compensation in addition to that 

12 received for their services as officers or employees of the 

13 United States. 

14 (b) TRAVEL EXPENSES.—The members of the Panel 

15 shall be allowed travel expenses, including per diem in lieu 

16 of subsistence, at rates authorized for employees of agen17 cies under subchapter I of chapter 57 of title 5, United 

18 States Code, while away from their homes or regular 

19 places of business in the performance of services for the 

20 Panel. 

21 (c) STAFF.— 

22 (1) IN GENERAL.—The Chairperson of the 

23 Panel may, without regard to the civil service laws 

24 and regulations, appoint and terminate an executive 

25 director and such other additional personnel as may 

26 be necessary to enable the Panel to perform its duVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00425 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 ties. The employment of an executive director shall 

2 be subject to confirmation by the Panel. 

3 (2) COMPENSATION.—The Chairperson of the 

4 Panel may fix the compensation of the executive di5 rector and other personnel without regard to chapter 

6 51 and subchapter III of chapter 53 of title 5, 

7 United States Code, relating to classification of posi8 tions and General Schedule pay rates, except that 

9 the rate of pay for the executive director and other 

10 personnel may not exceed the rate payable for level 

11 V of the Executive Schedule under section 5316 of 

12 such title. 

13 (3) PERSONNEL AS FEDERAL EMPLOYEES.— 

14 (A) IN GENERAL.—The executive director 

15 and any personnel of the Panel who are employ16 ees shall be employees under section 2105 of 

17 title 5, United States Code, for purposes of 

18 chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, 

19 and 90 of that title. 

20 (B) MEMBERS OF PANEL.—Subparagraph 

21 (A) shall not be construed to apply to members 

22 of the Panel. 

23 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any 

24 Federal Government employee may be detailed to the 

25 Panel without reimbursement, and such detail shall be 


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1 without interruption or loss of civil service status or privi2 lege. 

3 (e) PROCUREMENT OF TEMPORARY AND INTERMIT4 TENT SERVICES.—The Chairperson of the Panel may pro5 cure temporary and intermittent services under section 

6 3109(b) of title 5, United States Code, at rates for individ7 uals which do not exceed the daily equivalent of the annual 

8 rate of basic pay prescribed for level V of the Executive 

9 Schedule under section 5316 of such title. 

10 (f) ADMINISTRATIVE SUPPORT.—The General Serv11 ices Administration shall provide the Board with adminis12 trative support services, including the provision of office 

13 space and facilities. 

14 SEC. 1535. TERMINATION OF THE PANEL. 

15 The Panel shall terminate on September 30, 2012. 

16 SEC. 1536. AUTHORIZATION OF APPROPRIATIONS. 

17 There are authorized to be appropriated such sums 

18 as necessary to carry out this subtitle. 

19 Subtitle C—Reports of the Council 

20 of Economic Advisers 

21 SEC. 1541. REPORTS OF THE COUNCIL OF ECONOMIC AD22 VISERS. 

23 (a) IN GENERAL.—In consultation with the Director 

24 of the Office of Management and Budget and the Sec25 retary of the Treasury, the Chairperson of the Council of 


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AMDT. NO. 98 

1 Economic Advisers shall submit quarterly reports to the 

2 Committees on Appropriations of the Senate and House 

3 of Representatives that detail the estimated impact of pro4 grams funded through covered funds on employment, eco5 nomic growth, and other key economic indicators. 

6 (b) SUBMISSION.—The first report under subsection 

7 (a) shall be submitted not later than 15 days after the 

8 end of the first full quarter following the date of enact9 ment of this Act. The last report required to be submitted 

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

11 the Board terminates under section 1521. 

12 TITLE XVI—GENERAL PROVISIONS—THIS ACT 

13 EMERGENCY DESIGNATION

14 SEC. 1601. Each amount in this Act is designated 

15 as an emergency requirement and necessary to meet emer16 gency needs pursuant to section 204(a) of S. Con. Res. 

17 21 (110th Congress) and section 301(b)(2) of S. Con. Res. 

18 70 (110th Congress), the concurrent resolutions on the 

19 budget for fiscal years 2008 and 2009. 

20 AVAILABILITY

21 SEC. 1602. No part of any appropriation contained 

22 in this Act shall remain available for obligation beyond 

23 the current fiscal year unless expressly so provided herein. 

24 RELATIONSHIP TO OTHER APPROPRIATIONS

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1 priated for the fiscal year involved. Enactment of this Act 

2 shall have no effect on the availability of amounts under 

3 the Continuing Appropriations Resolution, 2009 (division 

4 A of Public Law 110–329). 

5 BUY AMERICAN

6 SEC. 1604. USE OF AMERICAN IRON, STEEL, AND

7 MANUFACTURED GOODS. (a) None of the funds appro8 priated or otherwise made available by this Act may be 

9 used for a project for the construction, alteration, mainte10 nance, or repair of a public building or public work unless 

11 all of the iron, steel, and manufactured goods used in the 

12 project are produced in the United States. 

13 (b) Subsection (a) shall not apply in any case in 

14 which the head of the Federal department or agency in15 volved finds that— 

16 (1) applying subsection (a) would be incon17 sistent with the public interest; 

18 (2) iron, steel, and the relevant manufactured 

19 goods are not produced in the United States if suffi20 cient and reasonably available quantities and of a 

21 satisfactory quality; or 

22 (3) inclusion of iron, steel, and manufactured 

23 goods produced in the United States will increase 

24 the cost of the overall project by more than 25 per25 cent. 


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1 (c) If the head of a Federal department or agency 

2 determines that it is necessary to waive the application 

3 of subsection (a) based on a finding under subsection (b), 

4 the head of the department or agency shall publish in the 

5 Federal Register a detailed written jurisdiction as to why 

6 the provision is being waived. 

7 (d) In this section, the terms ‘‘public building’’ and 

8 ‘‘public work’’ have the meanings given such terms in sec9 tion 1 of the Buy American Act (41 U.S.C. 10c) and in10 clude airports, bridges, canals, dams, dikes, pipelines, rail11 roads, multiline mass transit systems, roads, tunnels, har12 bors, and piers. 

13 CERTIFICATION

14 SEC. 1605. With respect to funds in titles I though 

15 XVI of this Act made available to State, or local govern16 ment agencies, the Governor, mayor, or other chief execu17 tive, as appropriate, shall certify that the infrastructure 

18 investment has received the full review and vetting re19 quired by law and that the chief executive accepts respon20 sibility that the infrastructure investment is an appro21 priate use of taxpayer dollars. A State or local agency may 

22 not receive infrastructure investment funding from funds 

23 made available in this Act unless this certification is made. 

24 ECONOMIC STABILIZATION CONTRACTING

25 SEC. 1606. REFORM OF CONTRACTING PROCEDURES

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1 nomic Stabilization Act of 2008 (12 U.S.C. 5217(b)) is 

2 amended by inserting ‘‘and individuals with disabilities 

3 and businesses owned by individuals with disabilities (for 

4 purposes of this subsection the term ‘individual with dis5 ability’ has the same meaning as the term ‘handicapped 

6 individual’ as that term is defined in section 3(f) of the 

7 Small Business Act (15 U.S.C. 632(f)),’’ after ‘‘(12 

8 U.S.C. 1441a(r)(4)),’’. 

9 DIVISION B—TAX, UNEMPLOY10 MENT, HEALTH, STATE FIS11 CAL RELIEF, AND OTHER 

12 PROVISIONS 

13 TITLE I—TAX PROVISIONS 

14 SEC. 1000. SHORT TITLE, ETC. 

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

16 ‘‘American Recovery and Reinvestment Tax Act of 2009’’. 

17 (b) REFERENCE.—Except as otherwise expressly pro18 vided, whenever in this title an amendment or repeal is 

19 expressed in terms of an amendment to, or repeal of, a 

20 section or other provision, the reference shall be consid21 ered to be made to a section or other provision of the In22 ternal Revenue Code of 1986. 

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

24 this title is as follows: 

TITLE I—TAX PROVISIONS 

Sec. 1000. Short title, etc. 


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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 first-time homebuyer credit; waiver of requirement to 

repay. 

Sec. 1007. Suspension of tax on portion of unemployment compensation. 

PART II—ALTERNATIVE MINIMUM TAX RELIEF

Sec. 1011. Extension of alternative minimum tax relief for nonrefundable personal credits. 

Sec. 1012. Extension of increased alternative minimum tax exemption amount. 

Subtitle B—Energy Incentives 

PART I—RENEWABLE ENERGY INCENTIVES

Sec. 1101. Extension of credit for electricity produced from certain renewable 

resources. 

Sec. 1102. Election of investment credit in lieu of production credit. 

Sec. 1103. Repeal of certain limitations on credit for renewable energy property. 

PART II—INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY

BONDS AND QUALIFIED ENERGY CONSERVATION BONDS

Sec. 1111. Increased limitation on issuance of new clean renewable energy 

bonds. 

Sec. 1112. Increased limitation on issuance of qualified energy conservation 

bonds. 

PART III—ENERGY CONSERVATION INCENTIVES

Sec. 1121. Extension and modification of credit for nonbusiness energy property. 

Sec. 1122. Modification of credit for residential energy efficient property. 

Sec. 1123. Temporary increase in credit for alternative fuel vehicle refueling 

property. 

PART IV—ENERGY RESEARCH INCENTIVES

Sec. 1131. Increased research credit for energy research. 

PART V—GENERAL BUSINESS CREDIT

Sec. 1141. 5-year carryback of general business credits. 

Sec. 1142. Temporary provision allowing general business credits to offset 100 

percent of Federal income tax liability. 

PART VI—MODIFICATION OF CREDIT FOR CARBON DIOXIDE

SEQUESTRATION


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AMDT. NO. 98 

Sec. 1151. Application of monitoring requirements to carbon dioxide used as a 

tertiary injectant. 

PART VII—PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

Sec. 1161. Modification of credit for qualified plug-in electric motor vehicles. 

Subtitle C—Tax Incentives for Business 

PART I—TEMPORARY INVESTMENT INCENTIVES

Sec. 1201. Special allowance for certain property acquired during 2009. 

Sec. 1202. Temporary increase in limitations on expensing of certain depreciable business assets. 

PART II—5-YEAR CARRYBACK OF OPERATING LOSSES

Sec. 1211. 5-year carryback of operating losses. 

Sec. 1212. Exception for TARP recipients. 

PART III—INCENTIVES FOR NEW JOBS

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

PART IV—CANCELLATION OF INDEBTEDNESS

Sec. 1231. Deferral and ratable inclusion of income arising from indebtedness 

discharged by the repurchase of a debt instrument. 

PART V—QUALIFIED SMALL BUSINESS STOCK

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

and 2010. 

PART VI—PARITY FOR TRANSPORTATION FRINGE BENEFITS

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

PART VII—S CORPORATIONS

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

PART VIII—BROADBAND INCENTIVES

Sec. 1271. Broadband Internet access tax credit. 

PART IX—CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON

CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE

Sec. 1281. Clarification of regulations related to limitations on certain built-in 

losses following an ownership change. 

Subtitle D—Manufacturing Recovery Provisions 

Sec. 1301. Temporary expansion of availability of industrial development bonds 

to facilities manufacturing intangible property. 

Sec. 1302. Credit for investment in advanced energy facilities. 

Subtitle E—Economic Recovery Tools 


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Sec. 1401. Recovery zone bonds. 

Sec. 1402. Tribal economic development bonds. 

Sec. 1403. Modifications to new markets tax credit. 

Subtitle F—Infrastructure Financing Tools 

PART I—IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS

Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of 

financial institutions. 

Sec. 1502. Modification of small issuer exception to tax-exempt interest expense 

allocation rules for financial institutions. 

Sec. 1503. Temporary modification of alternative minimum tax limitations on 

tax-exempt bonds. 

Sec. 1504. Modification to high speed intercity rail facility bonds. 

PART II—DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT

CONTRACTORS

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

PART III—TAX CREDIT BONDS FOR SCHOOLS

Sec. 1521. Qualified school construction bonds. 

Sec. 1522. Extension and expansion of qualified zone academy bonds. 

PART IV—BUILD AMERICA BONDS

Sec. 1531. Build America bonds. 

Subtitle G—Economic Recovery Payments to Certain Individuals 

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

Subtitle H—Trade Adjustment Assistance 

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

Subtitle I—Prohibition on Collection of Certain Payments Made Under the 

Continued Dumping and Subsidy Offset Act of 2000 

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

Subtitle J—Other Provisions 

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

Sec. 1902. Increase in public debt limit. 


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AMDT. NO. 98 

1 Subtitle A—Tax Relief for 

2 Individuals and Families 

3 PART I—GENERAL TAX RELIEF 

4 SEC. 1001. MAKING WORK PAY CREDIT. 

5 (a) IN GENERAL.—Subpart C of part IV of sub6 chapter A of chapter 1 is amended by inserting after sec7 tion 36 the following new section: 

8 ‘‘SEC. 36A. MAKING WORK PAY CREDIT. 

9 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli10 gible individual, there shall be allowed as a credit against 

11 the tax imposed by this subtitle for the taxable year an 

12 amount equal to the lesser of— 

13 ‘‘(1) 6.2 percent of earned income of the tax14 payer, or 

15 ‘‘(2) $500 ($1,000 in the case of a joint re16 turn). 

17 ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED

18 GROSS INCOME.— 

19 ‘‘(1) IN GENERAL.—The amount allowable as a 

20 credit under subsection (a) (determined without re21 gard to this paragraph and subsection (c)) for the 

22 taxable year shall be reduced (but not below zero) by 

23 4 percent of so much of the taxpayer’s modified ad24 justed gross income as exceeds $75,000 ($150,000 

25 in the case of a joint return). 


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1 ‘‘(2) MODIFIED ADJUSTED GROSS INCOME.— 

2 For purposes of subparagraph (A), the term ‘modi3 fied adjusted gross income’ means the adjusted 

4 gross income of the taxpayer for the taxable year in5 creased by any amount excluded from gross income 

6 under section 911, 931, or 933. 

7 ‘‘(c) REDUCTION FOR CERTAIN OTHER PAY8 MENTS.—The credit allowed under subsection (a) for any 

9 taxable year shall be reduced by the amount of any pay10 ments received by the taxpayer during such taxable year 

11 under section 1601 of the American Recovery and Rein12 vestment Tax Act of 2009. 

13 ‘‘(d) DEFINITIONS.—For purposes of this section— 

14 ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

15 individual’ means any individual other than— 

16 ‘‘(A) any nonresident alien individual, 

17 ‘‘(B) any individual with respect to whom 

18 a deduction under section 151 is allowable to 

19 another taxpayer for a taxable year beginning 

20 in the calendar year in which the individual’s 

21 taxable year begins, and 

22 ‘‘(C) an estate or trust. 

23 Such term shall not include any individual unless the 

24 requirements of section 32(c)(1)(E) are met with re25 spect to such individual. 


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AMDT. NO. 98 

1 ‘‘(2) EARNED INCOME.—The term ‘earned in2 come’ has the meaning given such term by section 

3 32(c)(2), except that such term shall not include net 

4 earnings from self-employment which are not taken 

5 into account in computing taxable income. For pur6 poses of the preceding sentence, any amount ex7 cluded from gross income by reason of section 112 

8 shall be treated as earned income which is taken 

9 into account in computing taxable income for the 

10 taxable year. 

11 ‘‘(e) TERMINATION.—This section shall not apply to 

12 taxable years beginning after December 31, 2010.’’. 

13 (b) TREATMENT OF POSSESSIONS.— 

14 (1) PAYMENTS TO POSSESSIONS.— 

15 (A) MIRROR CODE POSSESSION.—The Sec16 retary of the Treasury shall pay to each posses17 sion of the United States with a mirror code 

18 tax system amounts equal to the loss to that 

19 possession by reason of the amendments made 

20 by this section with respect to taxable years be21 ginning in 2009 and 2010. Such amounts shall 

22 be determined by the Secretary of the Treasury 

23 based on information provided by the govern24 ment of the respective possession. 


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AMDT. NO. 98 

1 (B) OTHER POSSESSIONS.—The Secretary 

2 of the Treasury shall pay to each possession of 

3 the United States which does not have a mirror 

4 code tax system amounts estimated by the Sec5 retary of the Treasury as being equal to the ag6 gregate benefits that would have been provided 

7 to residents of such possession by reason of the 

8 amendments made by this section for taxable 

9 years beginning in 2009 and 2010 if a mirror 

10 code tax system had been in effect in such pos11 session. The preceding sentence shall not apply 

12 with respect to any possession of the United 

13 States unless such possession has a plan, which 

14 has been approved by the Secretary of the 

15 Treasury, under which such possession will 

16 promptly distribute such payments to the resi17 dents of such possession. 

18 (2) COORDINATION WITH CREDIT ALLOWED

19 AGAINST UNITED STATES INCOME TAXES.—No cred20 it shall be allowed against United States income 

21 taxes for any taxable year under section 36A of the 

22 Internal Revenue Code of 1986 (as added by this 

23 section) to any person— 

24 (A) to whom a credit is allowed against 

25 taxes imposed by the possession by reason of 


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AMDT. NO. 98 

1 the amendments made by this section for such 

2 taxable year, or 

3 (B) who is eligible for a payment under a 

4 plan described in paragraph (1)(B) with respect 

5 to such taxable year. 

6 (3) DEFINITIONS AND SPECIAL RULES.— 

7 (A) POSSESSION OF THE UNITED

8 STATES.—For purposes of this subsection, the 

9 term ‘‘possession of the United States’’ includes 

10 the Commonwealth of Puerto Rico and the 

11 Commonwealth of the Northern Mariana Is12 lands. 

13 (B) MIRROR CODE TAX SYSTEM.—For pur14 poses of this subsection, the term ‘‘mirror code 

15 tax system’’ means, with respect to any posses16 sion of the United States, the income tax sys17 tem of such possession if the income tax liabil18 ity of the residents of such possession under 

19 such system is determined by reference to the 

20 income tax laws of the United States as if such 

21 possession were the United States. 

22 (C) TREATMENT OF PAYMENTS.—For pur23 poses of section 1324(b)(2) of title 31, United 

24 States Code, the payments under this sub25 section shall be treated in the same manner as 


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AMDT. NO. 98 

1 a refund due from the credit allowed under sec2 tion 36A of the Internal Revenue Code of 1986 

3 (as added by this section). 

4 (c) REFUNDS DISREGARDED IN THE ADMINISTRA5 TION OF FEDERAL PROGRAMS AND FEDERALLY AS6 SISTED PROGRAMS.—Any credit or refund allowed or 

7 made to any individual by reason of section 36A of the 

8 Internal Revenue Code of 1986 (as added by this section) 

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

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

11 account as resources for the month of receipt and the fol12 lowing 2 months, for purposes of determining the eligi13 bility of such individual or any other individual for benefits 

14 or assistance, or the amount or extent of benefits or assist15 ance, under any Federal program or under any State or 

16 local program financed in whole or in part with Federal 

17 funds. 

18 (d) AUTHORITY RELATING TO CLERICAL ERRORS.— 

19 Section 6213(g)(2) is amended by striking ‘‘and’’ at the 

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

21 end of subparagraph (M) and inserting ‘‘, and’’, and by 

22 adding at the end the following new subparagraph: 

23 ‘‘(N) an omission of the reduction required 

24 under section 36A(c) with respect to the credit 

25 allowed under section 36A or an omission of the 


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AMDT. NO. 98 

1 correct TIN required under section 

2 36A(d)(1).’’. 

3 (e) CONFORMING AMENDMENTS.— 

4 (1) Section 6211(b)(4)(A) is amended by insert5 ing ‘‘36A,’’ after ‘‘36,’’. 

6 (2) Section 1324(b)(2) of title 31, United 

7 States Code, is amended by inserting ‘‘36A,’’ after 

8 ‘‘36,’’. 

9 (3) The table of sections for subpart C of part 

10 IV of subchapter A of chapter 1 is amended by in11 serting after the item relating to section 36 the fol12 lowing new item: 

‘‘Sec. 36A. Making work pay credit.’’. 

13 (f) EFFECTIVE DATE.—This section, and the amend14 ments made by this section, shall apply to taxable years 

15 beginning after December 31, 2008. 

16 SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX 

17 CREDIT. 

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

19 amended by adding at the end the following new para20 graph: 

21 ‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 

22 the case of any taxable year beginning in 2009 or 

23 2010— 

24 ‘‘(A) INCREASED CREDIT PERCENTAGE

25 FOR 3 OR MORE QUALIFYING CHILDREN.—In 


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1 the case of a taxpayer with 3 or more qualifying 

2 children, the credit percentage is 45 percent. 

3 ‘‘(B) REDUCTION OF MARRIAGE PEN4 ALTY.— 

5 ‘‘(i) IN GENERAL.—The dollar amount 

6 in effect under paragraph (2)(B) shall be 

7 $5,000. 

8 ‘‘(ii) INFLATION ADJUSTMENT.—In 

9 the case of any taxable year beginning in 

10 2010, the $5,000 amount in clause (i) 

11 shall be increased by an amount equal to— 

12 ‘‘(I) such dollar amount, multi13 plied by 

14 ‘‘(II) the cost of living adjust15 ment determined under section 1(f)(3) 

16 for the calendar year in which the tax17 able year begins determined by sub18 stituting ‘calendar year 2008’ for ‘cal19 endar year 1992’ in subparagraph (B) 

20 thereof. 

21 ‘‘(iii) ROUNDING.—Subparagraph (A) 

22 of subsection (j)(2) shall apply after taking 

23 into account any increase under clause 

24 (ii).’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2008. 

4 SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE POR5 TION OF CHILD CREDIT. 

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

7 amended to read as follows: 

8 ‘‘(4) SPECIAL RULE FOR 2009 AND 2010.—Not9 withstanding paragraph (3), in the case of any tax10 able year beginning in 2009 or 2010, the dollar 

11 amount in effect for such taxable year under para12 graph (1)(B)(i) shall be $6,000.’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2008. 

16 SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT. 

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

18 scholarship credit) is amended by redesignating subsection 

19 (i) as subsection (j) and by inserting after subsection (h) 

20 the following new subsection: 

21 ‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.—In the 

22 case of any taxable year beginning in 2009 or 2010— 

23 ‘‘(1) INCREASE IN CREDIT.—The Hope Scholar24 ship Credit shall be an amount equal to the sum 

25 of— 


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1 ‘‘(A) 100 percent of so much of the quali2 fied tuition and related expenses paid by the 

3 taxpayer during the taxable year (for education 

4 furnished to the eligible student during any 

5 academic period beginning in such taxable year) 

6 as does not exceed $2,000, plus 

7 ‘‘(B) 25 percent of such expenses so paid 

8 as exceeds $2,000 but does not exceed $4,000. 

9 ‘‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF

10 POST-SECONDARY EDUCATION.—Subparagraphs (A) 

11 and (C) of subsection (b)(2) shall be applied by sub12 stituting ‘4’ for ‘2’. 

13 ‘‘(3) QUALIFIED TUITION AND RELATED EX14 PENSES TO INCLUDE REQUIRED COURSE MATE15 RIALS.—Subsection (f)(1)(A) shall be applied by 

16 substituting ‘tuition, fees, and course materials’ for 

17 ‘tuition and fees’. 

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

19 SCHOLARSHIP CREDIT.—In lieu of applying sub20 section (d) with respect to the Hope Scholarship 

21 Credit, such credit (determined without regard to 

22 this paragraph) shall be reduced (but not below 

23 zero) by the amount which bears the same ratio to 

24 such credit (as so determined) as— 

25 ‘‘(A) the excess of— 


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AMDT. NO. 98 

1 ‘‘(i) the taxpayer’s modified adjusted 

2 gross income (as defined in subsection 

3 (d)(3)) for such taxable year, over 

4 ‘‘(ii) $80,000 ($160,000 in the case of 

5 a joint return), bears to 

6 ‘‘(B) $10,000 ($20,000 in the case of a 

7 joint return). 

8 ‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE

9 MINIMUM TAX.—In the case of a taxable year to 

10 which section 26(a)(2) does not apply, so much of 

11 the credit allowed under subsection (a) as is attrib12 utable to the Hope Scholarship Credit shall not ex13 ceed the excess of— 

14 ‘‘(A) the sum of the regular tax liability 

15 (as defined in section 26(b)) plus the tax im16 posed by section 55, over 

17 ‘‘(B) the sum of the credits allowable 

18 under this subpart (other than this subsection 

19 and sections 23, 25D, and 30D) and section 27 

20 for the taxable year. 

21 Any reference in this section or section 24, 25, 26, 

22 25B, 904, or 1400C to a credit allowable under this 

23 subsection shall be treated as a reference to so much 

24 of the credit allowable under subsection (a) as is at25 tributable to the Hope Scholarship Credit. 


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1 ‘‘(6) PORTION OF CREDIT MADE REFUND2 ABLE.—30 percent of so much of the credit allowed 

3 under subsection (a) as is attributable to the Hope 

4 Scholarship Credit (determined after application of 

5 paragraph (4) and without regard to this paragraph 

6 and section 26(a)(2) or paragraph (5), as the case 

7 may be) shall be treated as a credit allowable under 

8 subpart C (and not allowed under subsection (a)). 

9 The preceding sentence shall not apply to any tax10 payer for any taxable year if such taxpayer is a child 

11 to whom subsection (g) of section 1 applies for such 

12 taxable year. 

13 ‘‘(7) COORDINATION WITH MIDWESTERN DIS14 ASTER AREA BENEFITS.—In the case of a taxpayer 

15 with respect to whom section 702(a)(1)(B) of the 

16 Heartland Disaster Tax Relief Act of 2008 applies 

17 for any taxable year, such taxpayer may elect to 

18 waive the application of this subsection to such tax19 payer for such taxable year.’’. 

20 (b) CONFORMING AMENDMENTS.— 

21 (1) Section 24(b)(3)(B) is amended by inserting 

22 ‘‘25A(i),’’ after ‘‘23,’’. 

23 (2) Section 25(e)(1)(C)(ii) is amended by in24 serting ‘‘25A(i),’’ after ‘‘24,’’. 


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1 (3) Section 26(a)(1) is amended by inserting 

2 ‘‘25A(i),’’ after ‘‘24,’’. 

3 (4) Section 25B(g)(2) is amended by inserting 

4 ‘‘25A(i),’’ after ‘‘23,’’. 

5 (5) Section 904(i) is amended by inserting 

6 ‘‘25A(i),’’ after ‘‘24,’’. 

7 (6) Section 1400C(d)(2) is amended by insert8 ing ‘‘25A(i),’’ after ‘‘24,’’. 

9 (7) Section 1324(b)(2) of title 31, United 

10 States Code, is amended by inserting ‘‘25A,’’ before 

11 ‘‘35’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2008. 

15 (d) APPLICATION OF EGTRRA SUNSET.—The 

16 amendment made by subsection (b)(1) shall be subject to 

17 title IX of the Economic Growth and Tax Relief Reconcili18 ation Act of 2001 in the same manner as the provision 

19 of such Act to which such amendment relates. 

20 (e) TREASURY STUDIES REGARDING EDUCATION IN21 CENTIVES.— 

22 (1) STUDY REGARDING COORDINATION WITH

23 NON-TAX EDUCATIONAL INCENTIVES.—The Sec24 retary of the Treasury, or the Secretary’s delegate, 

25 shall study how to coordinate the credit allowed 


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1 under section 25A of the Internal Revenue Code of 

2 1986 with the Federal Pell Grant program under 

3 section 401 of the Higher Education Act of 1965. 

4 (2) STUDY REGARDING IMPOSITION OF COMMU5 NITY SERVICE REQUIREMENTS.—The Secretary of 

6 the Treasury, or the Secretary’s delegate, shall study 

7 the feasibility of requiring students to perform com8 munity service as a condition of taking their tuition 

9 and related expenses into account under section 25A 

10 of the Internal Revenue Code of 1986. 

11 (3) REPORT.—Not later than 1 year after the 

12 date of the enactment of this Act, the Secretary of 

13 the Treasury, or the Secretary’s delegate, shall re14 port to Congress on the results of the studies con15 ducted under this paragraph. 

16 SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT AL17 LOWED AS A QUALIFIED HIGHER EDUCATION 

18 EXPENSE FOR SECTION 529 ACCOUNTS IN 

19 2009 AND 2010. 

20 (a) IN GENERAL.—Section 529(e)(3)(A) is amended 

21 by striking ‘‘and’’ at the end of clause (i), by striking the 

22 period at the end of clause (ii), and by adding at the end 

23 the following: 

24 ‘‘(iii) expenses paid or incurred in 

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1 puter technology or equipment (as defined 

2 in section 170(e)(6)(F)(i)) or Internet ac3 cess and related services, if such tech4 nology, equipment, or services are to be 

5 used by the beneficiary and the bene6 ficiary’s family during any of the years the 

7 beneficiary is enrolled at an eligible edu8 cational institution. 

9 Clause (iii) shall not include expenses for com10 puter software designed for sports, games, or 

11 hobbies unless the software is predominantly 

12 educational in nature.’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to expenses paid or incurred after 

15 December 31, 2008. 

16 SEC. 1006. EXTENSION OF FIRST-TIME HOMEBUYER CRED17 IT; WAIVER OF REQUIREMENT TO REPAY. 

18 (a) EXTENSION.— 

19 (1) IN GENERAL.—Section 36(h) is amended by 

20 striking ‘‘July 1, 2009’’ and inserting ‘‘September 1, 

21 2009’’. 

22 (2) CONFORMING AMENDMENT.—Section 36(g) 

23 is amended by striking ‘‘July 1, 2009’’ and inserting 

24 ‘‘September 1, 2009’’. 

25 (b) WAIVER OF RECAPTURE.— 


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1 (1) IN GENERAL.—Paragraph (4) of section 

2 36(f) is amended by adding at the end the following 

3 new subparagraph: 

4 ‘‘(D) WAIVER OF RECAPTURE FOR PUR5 CHASES IN 2009.—In the case of any credit al6 lowed with respect to the purchase of a prin7 cipal residence after December 31, 2008, and 

8 before September 1, 2009— 

9 ‘‘(i) paragraph (1) shall not apply, 

10 and 

11 ‘‘(ii) paragraph (2) shall apply only if 

12 the disposition or cessation described in 

13 paragraph (2) with respect to such resi14 dence occurs during the 36-month period 

15 beginning on the date of the purchase of 

16 such residence by the taxpayer.’’. 

17 (2) CONFORMING AMENDMENT.—Subsection (g) 

18 of section 36 is amended by striking ‘‘subsection 

19 (c)’’ and inserting ‘‘subsections (c) and (f)(4)(D)’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to residences purchased after De22 cember 31, 2008. 


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1 SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEM2 PLOYMENT COMPENSATION. 

3 (a) IN GENERAL.—Section 85 of the Internal Rev4 enue Code of 1986 (relating to unemployment compensa5 tion) is amended by adding at the end the following new 

6 subsection: 

7 ‘‘(c) SPECIAL RULE FOR 2009.—In the case of any 

8 taxable year beginning in 2009, gross income shall not in9 clude so much of the unemployment compensation received 

10 by an individual as does not exceed $2,400.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2008. 

14 PART II—ALTERNATIVE MINIMUM TAX RELIEF 

15 SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RE16 LIEF FOR NONREFUNDABLE PERSONAL 

17 CREDITS. 

18 (a) IN GENERAL.—Paragraph (2) of section 26(a) 

19 (relating to special rule for taxable years 2000 through 

20 2008) is amended— 

21 (1) by striking ‘‘or 2008’’ and inserting ‘‘2008, 

22 or 2009’’, and 

23 (2) by striking ‘‘2008’’ in the heading thereof 

24 and inserting ‘‘2009’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2008. 

4 SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MIN5 IMUM TAX EXEMPTION AMOUNT. 

6 (a) IN GENERAL.—Paragraph (1) of section 55(d) 

7 (relating to exemption amount) is amended— 

8 (1) by striking ‘‘($69,950 in the case of taxable 

9 years beginning in 2008)’’ in subparagraph (A) and 

10 inserting ‘‘($70,950 in the case of taxable years be11 ginning in 2009)’’, and 

12 (2) by striking ‘‘($46,200 in the case of taxable 

13 years beginning in 2008)’’ in subparagraph (B) and 

14 inserting ‘‘($46,700 in the case of taxable years be15 ginning in 2009)’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2008. 

19 Subtitle B—Energy Incentives 

20 PART I—RENEWABLE ENERGY INCENTIVES 

21 SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRO22 DUCED FROM CERTAIN RENEWABLE RE23 SOURCES. 

24 (a) IN GENERAL.—Subsection (d) of section 45 is 

25 amended— 


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1 (1) by striking ‘‘2010’’ in paragraph (1) and in2 serting ‘‘2013’’, 

3 (2) by striking ‘‘2011’’ each place it appears in 

4 paragraphs (2), (3), (4), (6), (7) and (9) and insert5 ing ‘‘2014’’, and 

6 (3) by striking ‘‘2012’’ in paragraph (11)(B) 

7 and inserting ‘‘2014’’. 

8 (b) TECHNICAL AMENDMENT.—Paragraph (5) of 

9 section 45(d) is amended by striking ‘‘and before’’ and 

10 all that follows and inserting ‘‘ and before October 3, 

11 2008.’’. 

12 (c) EFFECTIVE DATE.— 

13 (1) IN GENERAL.—The amendments made by 

14 subsection (a) shall apply to property placed in serv15 ice after the date of the enactment of this Act. 

16 (2) TECHNICAL AMENDMENT.—The amendment 

17 made by subsection (b) shall take effect as if in18 cluded in section 102 of the Energy Improvement 

19 and Extension Act of 2008. 

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

21 PRODUCTION CREDIT. 

22 (a) IN GENERAL.—Subsection (a) of section 48 is 

23 amended by adding at the end the following new para24 graph: 


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1 ‘‘(5) ELECTION TO TREAT QUALIFIED FACILI2 TIES AS ENERGY PROPERTY.— 

3 ‘‘(A) IN GENERAL.—In the case of any 

4 qualified investment credit facility— 

5 ‘‘(i) such facility shall be treated as 

6 energy property for purposes of this sec7 tion, and 

8 ‘‘(ii) the energy percentage with re9 spect to such property shall be 30 percent. 

10 ‘‘(B) DENIAL OF PRODUCTION CREDIT.— 

11 No credit shall be allowed under section 45 for 

12 any taxable year with respect to any qualified 

13 investment credit facility. 

14 ‘‘(C) QUALIFIED INVESTMENT CREDIT FA15 CILITY.—For purposes of this paragraph, the 

16 term ‘qualified investment credit facility’ means 

17 any of the following facilities if no credit has 

18 been allowed under section 45 with respect to 

19 such facility and the taxpayer makes an irrev20 ocable election to have this paragraph apply to 

21 such facility: 

22 ‘‘(i) WIND FACILITIES.—Any facility 

23 described in paragraph (1) of section 45(d) 

24 if such facility is placed in service in 2009, 

25 2010, 2011, or 2012. 


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1 ‘‘(ii) OTHER FACILITIES.—Any facility 

2 described in paragraph (2), (3), (4), (6), 

3 (7), (9), or (11) of section 45(d) if such fa4 cility is placed in service in 2009, 2010, 

5 2011, 2012, or 2013.’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to facilities placed in service after 

8 December 31, 2008. 

9 SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT 

10 FOR RENEWABLE ENERGY PROPERTY. 

11 (a) REPEAL OF LIMITATION ON CREDIT FOR QUALI12 FIED SMALL WIND ENERGY PROPERTY.—Paragraph (4) 

13 of section 48(c) is amended by striking subparagraph (B) 

14 and by redesignating subparagraphs (C) and (D) as sub15 paragraphs (B) and (C). 

16 (b) REPEAL OF LIMITATION ON PROPERTY FI17 NANCED BY SUBSIDIZED ENERGY FINANCING.— 

18 (1) IN GENERAL.—Section 48(a)(4) is amended 

19 by adding at the end the following new subpara20 graph: 

21 ‘‘(D) TERMINATION.—This paragraph 

22 shall not apply to periods after December 31, 

23 2008, under rules similar to the rules of section 

24 48(m) (as in effect on the day before the date 


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1 of the enactment of the Revenue Reconciliation 

2 Act of 1990).’’. 

3 (2) CONFORMING AMENDMENTS.— 

4 (A) Section 25C(e)(1) is amended by strik5 ing ‘‘(8), and (9)’’ and inserting ‘‘and (8)’’. 

6 (B) Section 25D(e) is amended by striking 

7 paragraph (9). 

8 (C) Section 48A(b)(2) is amended by in9 serting ‘‘(without regard to subparagraph (D) 

10 thereof)’’ after ‘‘section 48(a)(4)’’. 

11 (D) Section 48B(b)(2) is amended by in12 serting ‘‘(without regard to subparagraph (D) 

13 thereof)’’ after ‘‘section 48(a)(4)’’. 

14 (c) EFFECTIVE DATE.— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the amendment made by this section shall 

17 apply to periods after December 31, 2008, under 

18 rules similar to the rules of section 48(m) of the In19 ternal Revenue Code of 1986 (as in effect on the day 

20 before the date of the enactment of the Revenue 

21 Reconciliation Act of 1990). 

22 (2) CONFORMING AMENDMENTS.—The amend23 ments made by subsection (b)(2) shall apply to tax24 able years beginning after December 31, 2008. 


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1 PART II—INCREASED ALLOCATIONS OF NEW 

2 CLEAN RENEWABLE ENERGY BONDS AND 

3 QUALIFIED ENERGY CONSERVATION BONDS 

4 SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW 

5 CLEAN RENEWABLE ENERGY BONDS. 

6 Subsection (c) of section 54C is amended by adding 

7 at the end the following new paragraph: 

8 ‘‘(4) ADDITIONAL LIMITATION.—The national 

9 new clean renewable energy bond limitation shall be 

10 increased by $1,600,000,000. Such increase shall be 

11 allocated by the Secretary consistent with the rules 

12 of paragraphs (2) and (3).’’. 

13 SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF 

14 QUALIFIED ENERGY CONSERVATION BONDS. 

15 Section 54D(d) is amended by striking 

16 ‘‘800,000,000’’ and inserting ‘‘$3,200,000,000’’. 

17 PART III—ENERGY CONSERVATION INCENTIVES 

18 SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR 

19 NONBUSINESS ENERGY PROPERTY. 

20 (a) IN GENERAL.—Section 25C is amended by strik21 ing subsections (a) and (b) and inserting the following new 

22 subsections: 

23 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in24 dividual, there shall be allowed as a credit against the tax 

25 imposed by this chapter for the taxable year an amount 

26 equal to 30 percent of the sum of— 


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1 ‘‘(1) the amount paid or incurred by the tax2 payer during such taxable year for qualified energy 

3 efficiency improvements, and 

4 ‘‘(2) the amount of the residential energy prop5 erty expenditures paid or incurred by the taxpayer 

6 during such taxable year. 

7 ‘‘(b) LIMITATION.—The aggregate amount of the 

8 credits allowed under this section for taxable years begin9 ning in 2009 and 2010 with respect to any taxpayer shall 

10 not exceed $1,500.’’. 

11 (b) EXTENSION.—Section 25C(g)(2) is amended by 

12 striking ‘‘December 31, 2009’’ and inserting ‘‘December 

13 31, 2010’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 December 31, 2008. 

17 SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL 

18 ENERGY EFFICIENT PROPERTY. 

19 (a) REMOVAL OF CREDIT LIMITATION FOR PROP20 ERTY PLACED IN SERVICE.— 

21 (1) IN GENERAL.—Paragraph (1) of section 

22 25D(b) is amended to read as follows: 

23 ‘‘(1) MAXIMUM CREDIT FOR FUEL CELLS.—In 

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1 mined without regard to subsection (c)) for any tax2 able year shall not exceed $500 with respect to each 

3 half kilowatt of capacity of the qualified fuel cell 

4 property (as defined in section 48(c)(1)) to which 

5 such expenditure relates.’’. 

6 (2) CONFORMING AMENDMENT.—Paragraph (4) 

7 of section 25D(e) is amended— 

8 (A) by striking all that precedes subpara9 graph (B) and inserting the following: 

10 ‘‘(4) FUEL CELL EXPENDITURE LIMITATIONS

11 IN CASE OF JOINT OCCUPANCY.—In the case of any 

12 dwelling unit with respect to which qualified fuel cell 

13 property expenditures are made and which is jointly 

14 occupied and used during any calendar year as a 

15 residence by two or more individuals the following 

16 rules shall apply: 

17 ‘‘(A) MAXIMUM EXPENDITURES FOR FUEL

18 CELLS.—The maximum amount of such ex19 penditures which may be taken into account 

20 under subsection (a) by all such individuals 

21 with respect to such dwelling unit during such 

22 calendar year shall be $1,667 in the case of 

23 each half kilowatt of capacity of qualified fuel 

24 cell property (as defined in section 48(c)(1)) 


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1 with respect to which such expenditures re2 late.’’, and 

3 (B) by striking subparagraph (C). 

4 (b) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2008. 

7 SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTER8 NATIVE FUEL VEHICLE REFUELING PROP9 ERTY. 

10 (a) IN GENERAL.—Section 30C(e) is amended by 

11 adding at the end the following new paragraph: 

12 ‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN

13 SERVICE DURING 2009 AND 2010.—In the case of 

14 property placed in service in taxable years beginning 

15 after December 31, 2008, and before January 1, 

16 2011— 

17 ‘‘(A) in the case of any such property 

18 which does not relate to hydrogen— 

19 ‘‘(i) subsection (a) shall be applied by 

20 substituting ‘50 percent’ for ‘30 percent’, 

21 ‘‘(ii) subsection (b)(1) shall be applied 

22 by substituting ‘$50,000’ for ‘$30,000’, 

23 and 


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1 ‘‘(iii) subsection (b)(2) shall be ap2 plied by substituting ‘$2,000’ for ‘$1,000’, 

3 and 

4 ‘‘(B) in the case of any such property 

5 which relates to hydrogen, subsection (b)(1) 

6 shall be applied by substituting ‘$200,000’ for 

7 ‘$30,000’.’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2008. 

11 PART IV—ENERGY RESEARCH INCENTIVES 

12 SEC. 1131. INCREASED RESEARCH CREDIT FOR ENERGY RE13 SEARCH. 

14 (a) IN GENERAL.—Section 41 is amended by redesig15 nating subsection (h) as subsection (i) and by inserting 

16 after subsection (g) the following new subsection: 

17 ‘‘(h) ENERGY RESEARCH CREDIT.—In the case of 

18 any taxable year beginning in 2009 or 2010— 

19 ‘‘(1) IN GENERAL.—The credit determined 

20 under subsection (a)(1) shall be increased by 20 per21 cent of the qualified energy research expenses for 

22 the taxable year. 

23 ‘‘(2) QUALIFIED ENERGY RESEARCH EX24 PENSES.—For purposes of this subsection— 


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1 ‘‘(A) IN GENERAL.—The term ‘qualified 

2 energy research expenses’ means so much of the 

3 taxpayer’s qualified research expenses as are re4 lated to the fields of fuel cells and battery tech5 nology, renewable energy and renewable fuels, 

6 energy conservation technology, efficient trans7 mission and distribution of electricity, and car8 bon capture and sequestration. 

9 ‘‘(B) COORDINATION WITH QUALIFYING

10 ADVANCED ENERGY PROJECT CREDIT.—Such 

11 term shall not include expenditures taken into 

12 account in determining the amount of the credit 

13 under section 48 or 48C. 

14 ‘‘(3) COORDINATION WITH OTHER RESEARCH

15 CREDITS.— 

16 ‘‘(A) IN GENERAL.—The amount of quali17 fied energy research expenses taken into ac18 count under subsection (a)(1)(A) shall not ex19 ceed the base amount. 

20 ‘‘(B) ALTERNATIVE SIMPLIFIED CREDIT.— 

21 For purposes of subsection (c)(5), the amount 

22 of qualified energy research expenses taken into 

23 account for the taxable year for which the cred24 it is being determined shall not exceed— 


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1 ‘‘(i) in the case of subsection 

2 (c)(5)(A), 50 percent of the average quali3 fied research expenses for the 3 taxable 

4 years preceding the taxable year for which 

5 the credit is being determined, and 

6 ‘‘(ii) in the case of subsection 

7 (c)(5)(B)(ii), zero. 

8 ‘‘(C) BASIC RESEARCH AND ENERGY RE9 SEARCH CONSORTIUM PAYMENTS.—Any amount 

10 taken into account under paragraph (1) shall 

11 not be taken into account under paragraph (2) 

12 or (3) of subsection (a).’’. 

13 (b) CONFORMING AMENDMENT.—Subparagraph (B) 

14 of section 41(i)(1)(B), as redesignated by subsection (a), 

15 is amended by inserting ‘‘(in the case of the increase in 

16 the credit determined under subsection (h), December 31, 

17 2010)’’ after ‘‘December 31, 2009’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 December 31, 2008. 


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1 PART V—GENERAL BUSINESS CREDIT 

2 SEC. 1141. 5-YEAR CARRYBACK OF GENERAL BUSINESS 

3 CREDITS. 

4 (a) IN GENERAL.—Subsection (a) of section 39 is 

5 amended by adding at the end the following new para6 graph: 

7 ‘‘(4) SPECIAL RULE FOR 2008 AND 2009 BUSI8 NESS CREDITS.—In the case of any current year 

9 business credit for a taxable year ending in 2008 or 

10 2009— 

11 ‘‘(A) paragraph (1)(A) shall be applied by 

12 substituting ‘each of the 5 taxable years’ for 

13 ‘the taxable year’ in subparagraph (A) thereof, 

14 and 

15 ‘‘(B) paragraph (2) shall be applied— 

16 ‘‘(i) by substituting ‘25 taxable years’ 

17 for ‘21 taxable years’, and 

18 ‘‘(ii) by substituting ‘24 taxable years’ 

19 for ‘20 taxable years’.’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this subsection shall apply to taxable years ending after 

22 December 31, 2007, and to carrybacks of business credits 

23 from such taxable years. 


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1 SEC. 1142. TEMPORARY PROVISION ALLOWING GENERAL 

2 BUSINESS CREDITS TO OFFSET 100 PERCENT 

3 OF FEDERAL INCOME TAX LIABILITY. 

4 (a) IN GENERAL.—Subsection (c) of section 38 is 

5 amended by adding at the end the following new para6 graph: 

7 ‘‘(6) TEMPORARY PROVISION ALLOWING GEN8 ERAL BUSINESS CREDITS TO OFFSET 100 PERCENT

9 OF FEDERAL INCOME TAX LIABILITY.— 

10 ‘‘(A) IN GENERAL.—In the case of a tax11 able year ending in 2008 or 2009— 

12 ‘‘(i) the limitation under paragraph 

13 (1) shall be the net income tax (as defined 

14 in paragraph (1)) for purposes of deter15 mining the amount of the credit allowed 

16 under subsection (a) for such taxable year, 

17 and 

18 ‘‘(ii) the excess credit for such taxable 

19 year shall, solely for purposes of deter20 mining the amount of such excess credit 

21 which may be carried back to a preceding 

22 taxable year, be increased by the amount 

23 of business credit carryforwards which are 

24 carried to such taxable year and which are 

25 not allowed for such taxable year by reason 


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1 of the limitation under paragraph (1) (as 

2 modified by clause (i)). 

3 ‘‘(B) INCREASE IN LIMITATION FOR TAX4 ABLE YEARS TO WHICH EXCESS CREDITS FOR

5 2008 AND 2009 ARE CARRIED BACK.— 

6 ‘‘(i) IN GENERAL.—Solely for pur7 poses of determining the portion of any ex8 cess credit described in subparagraph 

9 (A)(ii) for which credit will be allowed 

10 under subsection (a)(3) for any preceding 

11 taxable year, the limitation under para12 graph (1) for such preceding taxable year 

13 shall be the net income tax (as defined in 

14 paragraph (1)). 

15 ‘‘(ii) ORDERING RULE.—If the excess 

16 credit described in subparagraph (A)(ii) in17 cludes business credit carryforwards from 

18 preceding taxable years, such excess credit 

19 shall be treated as allowed for any pre20 ceding taxable year on a first-in first-out 

21 basis.’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to taxable years ending after De24 cember 31, 2007, and to carrybacks of credits from such 

25 taxable years. 


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1 PART VI—MODIFICATION OF CREDIT FOR 

2 CARBON DIOXIDE SEQUESTRATION 

3 SEC. 1151. APPLICATION OF MONITORING REQUIREMENTS 

4 TO CARBON DIOXIDE USED AS A TERTIARY 

5 INJECTANT. 

6 (a) IN GENERAL.—Section 45Q(a)(2) is amended by 

7 striking ‘‘and’’ at the end of subparagraph (A), by striking 

8 the period at the end of subparagraph (B) and inserting 

9 ‘‘,and’’, and by adding at the end the following new sub10 paragraph: 

11 ‘‘(C) disposed of by the taxpayer in secure 

12 geological storage.’’. 

13 (b) CONFORMING AMENDMENT.—Section 45Q(d)(2) 

14 is amended by striking ‘‘subsection (a)(1)(B)’’ and insert15 ing ‘‘paragraph (1)(B) or (2)(C) of subsection (a)’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to carbon dioxide captured after 

18 the date of the enactment of this Act. 

19 PART VII—PLUG-IN ELECTRIC DRIVE MOTOR 

20 VEHICLES 

21 SEC. 1161. MODIFICATION OF CREDIT FOR QUALIFIED 

22 PLUG-IN ELECTRIC MOTOR VEHICLES. 

23 (a) INCREASE IN VEHICLES ELIGIBLE FOR CRED24 IT.—Section 30D(b)(2)(B) is amended by striking 

25 ‘‘250,000’’ and inserting ‘‘500,000’’. 


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1 (b) EXCLUSION OF NEIGHBORHOOD ELECTRIC VEHI2 CLES FROM EXISTING CREDIT.—Section 30D(e)(1) is 

3 amended to read as follows: 

4 ‘‘(1) MOTOR VEHICLE.—The term ‘motor vehi5 cle’ means a motor vehicle (as defined in section 

6 30(c)(2)), which is treated as a motor vehicle for 

7 purposes of title II of the Clean Air Act.’’. 

8 (c) CREDIT FOR CERTAIN OTHER VEHICLES.—Sec9 tion 30D is amended— 

10 (1) by redesignating subsections (f) and (g) as 

11 subsections (g) and (h), respectively, and 

12 (2) by inserting after subsection (e) the fol13 lowing new subsection: 

14 ‘‘(f) CREDIT FOR CERTAIN OTHER VEHICLES.—For 

15 purposes of this section— 

16 ‘‘(1) IN GENERAL.—In the case of a specified 

17 vehicle, this section shall be applied with the fol18 lowing modifications: 

19 ‘‘(A) For purposes of subsection (a)(1), in 

20 lieu of the applicable amount determined under 

21 subsection (a)(2), the applicable amount shall 

22 be 10 percent of so much of the cost of the 

23 specified vehicle as does not exceed $40,000. 


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1 ‘‘(B) Subsection (b) shall not apply and no 

2 specified vehicle shall be taken into account 

3 under subsection (b)(2). 

4 ‘‘(C) Subsection (c)(3) shall not apply. 

5 ‘‘(2) SPECIFIED VEHICLE.—For purposes of 

6 this subsection— 

7 ‘‘(A) IN GENERAL.—The term ‘specified 

8 vehicle’ means— 

9 ‘‘(i) any 2- or 3- wheeled motor vehi10 cle, or 

11 ‘‘(ii) any low-speed motor vehicle, 

12 which is placed in service after December 31, 

13 2009, and before January 1, 2012. 

14 ‘‘(B) 2- OR 3-WHEELED MOTOR VEHI15 CLE.—The term ‘2- or 3-wheeled motor vehicle’ 

16 means any vehicle— 

17 ‘‘(i) which would be described in sec18 tion 30(c)(2) except that it has 2 or 3 

19 wheels, 

20 ‘‘(ii) with motive power having a seat 

21 or saddle for the use of the rider and de22 signed to travel on not more than 3 wheels 

23 in contact with the ground, 

24 ‘‘(iii) which has an electric motor that 

25 produces in excess of 5-brake horsepower, 


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1 ‘‘(iv) which draws propulsion from 1 

2 or more traction batteries, and 

3 ‘‘(v) which has been certified to the 

4 Department of Transportation pursuant to 

5 section 567 of title 49, Code of Federal 

6 Regulations, as conforming to all applica7 ble Federal motor vehicle safety standards 

8 in effect on the date of the manufacture of 

9 the vehicle. 

10 ‘‘(C) LOW-SPEED MOTOR VEHICLE.—The 

11 term ‘low-speed motor vehicle’ means a motor 

12 vehicle (as defined in section 30(c)(2)) which 

13 meets the requirements of section 571.500 of 

14 title 49, Code of Federal Regulations.’’. 

15 (d) EFFECTIVE DATES.— 

16 (1) INCREASE IN VEHICLES ELIGIBLE FOR

17 CREDIT.—The amendment made by subsection (a) 

18 shall take effect on the date of the enactment of this 

19 Act. 

20 (2) OTHER MODIFICATIONS.—The amendments 

21 made by subsections (b) and (c) shall apply to prop22 erty placed in service after December 31, 2009, in 

23 taxable years beginning after such date. 


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1 Subtitle C—Tax Incentives for 

2 Business 

3 PART I—TEMPORARY INVESTMENT INCENTIVES 

4 SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY 

5 ACQUIRED DURING 2009. 

6 (a) EXTENSION OF SPECIAL ALLOWANCE.— 

7 (1) IN GENERAL.—Paragraph (2) of section 

8 168(k) is amended— 

9 (A) by striking ‘‘January 1, 2010’’ and in10 serting ‘‘January 1, 2011’’, and 

11 (B) by striking ‘‘January 1, 2009’’ each 

12 place it appears and inserting ‘‘January 1, 

13 2010’’. 

14 (2) CONFORMING AMENDMENTS.— 

15 (A) The heading for subsection (k) of sec16 tion 168 is amended by striking ‘‘JANUARY 1, 

17 2009’’ and inserting ‘‘JANUARY 1, 2010’’. 

18 (B) The heading for clause (ii) of section 

19 168(k)(2)(B) is amended by striking ‘‘PRE-JAN20 UARY 1, 2009’’ and inserting ‘‘PRE-JANUARY 1, 

21 2010’’. 

22 (C) Subparagraph (B) of section 168(l)(5) 

23 is amended by striking ‘‘January 1, 2009’’ and 

24 inserting ‘‘January 1, 2010’’. 


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1 (D) Subparagraph (C) of section 168(n)(2) 

2 is amended by striking ‘‘January 1, 2009’’ and 

3 inserting ‘‘January 1, 2010’’. 

4 (E) Subparagraph (B) of section 

5 1400N(d)(3) is amended by striking ‘‘January 

6 1, 2009’’ and inserting ‘‘January 1, 2010’’. 

7 (3) TECHNICAL AMENDMENT.—Subparagraph 

8 (D) of section 168(k)(4) is amended— 

9 (A) by striking ‘‘and’’ at the end of clause 

10 (i), 

11 (B) by redesignating clause (ii) as clause 

12 (iii), and 

13 (C) by inserting after clause (i) the fol14 lowing new clause: 

15 ‘‘(ii) ‘April 1, 2008’ shall be sub16 stituted for ‘January 1, 2008’ in subpara17 graph (A)(iii)(I) thereof, and’’. 

18 (b) EXTENSION OF ELECTION TO ACCELERATE THE

19 AMT AND RESEARCH CREDITS IN LIEU OF BONUS DE20 PRECIATION.—Section 168(k)(4) (relating to election to 

21 accelerate the AMT and research credits in lieu of bonus 

22 depreciation) is amended— 

23 (1) by striking ‘‘2009’’ and inserting ‘‘2010’’in 

24 subparagraph (D)(iii) (as redesignated by subsection 

25 (a)(3)), and 


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1 (2) by adding at the end the following new sub2 paragraph: 

3 ‘‘(H) SPECIAL RULES FOR EXTENSION

4 PROPERTY.— 

5 ‘‘(i) TAXPAYERS PREVIOUSLY ELECT6 ING ACCELERATION.—In the case of a tax7 payer who made the election under sub8 paragraph (A) for its first taxable year 

9 ending after March 31, 2008— 

10 ‘‘(I) the taxpayer may elect not 

11 to have this paragraph apply to exten12 sion property, but 

13 ‘‘(II) if the taxpayer does not 

14 make the election under subclause (I), 

15 in applying this paragraph to the tax16 payer a separate bonus depreciation 

17 amount, maximum amount, and max18 imum increase amount shall be com19 puted and applied to eligible qualified 

20 property which is extension property 

21 and to eligible qualified property 

22 which is not extension property. 

23 ‘‘(ii) TAXPAYERS NOT PREVIOUSLY

24 ELECTING ACCELERATION.—In the case of 

25 a taxpayer who did not make the election 


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1 under subparagraph (A) for its first tax2 able year ending after March 31, 2008— 

3 ‘‘(I) the taxpayer may elect to 

4 have this paragraph apply to its first 

5 taxable year ending after December 

6 31, 2008, and each subsequent tax7 able year, and 

8 ‘‘(II) if the taxpayer makes the 

9 election under subclause (I), this 

10 paragraph shall only apply to eligible 

11 qualified property which is extension 

12 property. 

13 ‘‘(iii) EXTENSION PROPERTY.—For 

14 purposes of this subparagraph, the term 

15 ‘extension property’ means property which 

16 is eligible qualified property solely by rea17 son of the extension of the application of 

18 the special allowance under paragraph (1) 

19 pursuant to the amendments made by sec20 tion 1201(a) of the American Recovery and 

21 Reinvestment Tax Act of 2009 (and the 

22 application of such extension to this para23 graph pursuant to the amendment made 

24 by section 1201(b)(1) of such Act).’’. 


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1 (c) INCLUSION OF FILMS OR VIDEOTAPE AS QUALI2 FIED PROPERTY.— 

3 (1) IN GENERAL.—Section 168(k)(2) is amend4 ed by adding at the end the following new subpara5 graph: 

6 ‘‘(H) CERTAIN FILMS.—The term ‘quali7 fied property’ includes property— 

8 ‘‘(i) which is a motion picture film or 

9 video tape (within the meaning of sub10 section (f)(3)) for which a deduction is al11 lowable under section 167(a) without re12 gard to this section, 

13 ‘‘(ii) the original use of which com14 mences with the taxpayer after December 

15 31, 2008, 

16 ‘‘(iii) which is— 

17 ‘‘(I) acquired by the taxpayer 

18 after December 31, 2008, and before 

19 January 1, 2010, but only if no writ20 ten binding contract for the acquisi21 tion was in effect before January 1, 

22 2009, or 

23 ‘‘(II) acquired by the taxpayer 

24 pursuant to a written binding contract 

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1 ber 31, 2008, and before January 1, 

2 2010, 

3 ‘‘(iv) which is placed in service by the 

4 taxpayer before January 1, 2010, or, in 

5 the case of property described in subpara6 graph (B), before January 1, 2011, and 

7 ‘‘(v) the production of which is a 

8 qualified film or television production (as 

9 defined in section 181(d) (determined with10 out regard to paragraph (2)(B)(ii) there11 of)) with respect to which an election is 

12 not in effect under section 181.’’. 

13 (2) CONFORMING AMENDMENTS.— 

14 (A) Subclause (I) of section 

15 168(k)(2)(B)(i) is amended by inserting ‘‘sub16 paragraph (H) or’’ after ‘‘requirements of’’. 

17 (B) Subclause (II) of section 

18 168(k)(2)(B)(i) is amended by striking ‘‘or is 

19 transportation property’’ and inserting ‘‘, is 

20 transportation property, or is property de21 scribed in subparagraph (H)’’. 

22 (C) Clause (iii) of section 168(k)(2)(D) is 

23 amended by adding at the end the following 

24 new sentence: ‘‘For purposes of the preceding 

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1 graph (H) shall be treated as one class of prop2 erty.’’. 

3 (D) Subparagraph (E) of section 168(k)(2) 

4 is amended by adding at the end the following 

5 new clause: 

6 ‘‘(v) APPLICATION TO FILM AND VID7 EOTAPE PROPERTY.—In the case of prop8 erty described in subparagraph (H), 

9 clauses (i), (ii), (iii), and (iv) of this sub10 paragraph shall be applied— 

11 ‘‘(I) by substituting ‘December 

12 31, 2008’ for ‘December 31, 2007’ 

13 each place it appears, and 

14 ‘‘(II) by treating any reference to 

15 a clause of subparagraph (A) as a ref16 erence to the corresponding clause of 

17 subparagraph (H).’’. 

18 (d) EFFECTIVE DATES.— 

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the amendments made by this section 

21 shall apply to property placed in service after De22 cember 31, 2008, in taxable years ending after such 

23 date. 


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1 (2) TECHNICAL AMENDMENT.—The amend2 ments made by subsection (a)(3) shall apply to tax3 able years ending after March 31, 2008. 

4 SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EX5 PENSING OF CERTAIN DEPRECIABLE BUSI6 NESS ASSETS. 

7 (a) IN GENERAL.—Paragraph (7) of section 179(b) 

8 is amended— 

9 (1) by striking ‘‘2008’’ and inserting ‘‘2008, or 

10 2009’’, and 

11 (2) by striking ‘‘2008’’ in the heading thereof 

12 and inserting ‘‘2008, AND 2009’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2008. 

16 PART II—5-YEAR CARRYBACK OF OPERATING 

17 LOSSES 

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

19 (a) IN GENERAL.—Subparagraph (H) of section 

20 172(b)(1) is amended to read as follows: 

21 ‘‘(H) CARRYBACK FOR 2008 AND 2009 NET

22 OPERATING LOSSES.— 

23 ‘‘(i) IN GENERAL.—In the case of an 

24 applicable 2008 or 2009 net operating loss 

25 with respect to which the taxpayer has 


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1 elected the application of this subpara2 graph— 

3 ‘‘(I) subparagraph (A)(i) shall be 

4 applied by substituting any whole 

5 number elected by the taxpayer which 

6 is more than 2 and less than 6 for ‘2’, 

7 ‘‘(II) subparagraph (E)(ii) shall 

8 be applied by substituting the whole 

9 number which is one less than the 

10 whole number substituted under sub11 clause (II) for ‘2’, and 

12 ‘‘(III) subparagraph (F) shall not 

13 apply. 

14 ‘‘(ii) APPLICABLE 2008 OR 2009 NET

15 OPERATING LOSS.—For purposes of this 

16 subparagraph, the term ‘applicable 2008 

17 or 2009 net operating loss’ means— 

18 ‘‘(I) the taxpayer’s net operating 

19 loss for any taxable year ending in 

20 2008 or 2009, or 

21 ‘‘(II) if the taxpayer elects to 

22 have this subclause apply in lieu of 

23 subclause (I), the taxpayer’s net oper24 ating loss for any taxable year begin25 ning in 2008 or 2009. 


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1 ‘‘(iii) ELECTION.—Any election under 

2 this subparagraph shall be made in such 

3 manner as may be prescribed by the Sec4 retary, and shall be made by the due date 

5 (including extension of time) for filing the 

6 taxpayer’s return for the taxable year of 

7 the net operating loss. Any such election, 

8 once made, shall be irrevocable. 

9 ‘‘(iv) COORDINATION WITH ALTER10 NATIVE TAX NET OPERATING LOSS DEDUC11 TION.—In the case of a taxpayer who 

12 elects to have clause (ii)(II) apply, section 

13 56(d)(1)(A)(ii) shall be applied by sub14 stituting ‘ending during 2001 or 2002 or 

15 beginning during 2008 or 2009’ for ‘end16 ing during 2001, 2002, 2008, or 2009’.’’. 

17 (b) ALTERNATIVE TAX NET OPERATING LOSS DE18 DUCTION.—Subclause (I) of section 56(d)(1)(A)(ii) is 

19 amended to read as follows: 

20 ‘‘(I) the amount of such deduc21 tion attributable to the sum of 

22 carrybacks of net operating losses 

23 from taxable years ending during 

24 2001, 2002, 2008, or 2009 and 


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1 carryovers of net operating losses to 

2 such taxable years, or’’. 

3 (c) LOSS FROM OPERATIONS OF LIFE INSURANCE

4 COMPANIES.—Subsection (b) of section 810 is amended 

5 by adding at the end the following new paragraph: 

6 ‘‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES.— 

7 ‘‘(A) IN GENERAL.—In the case of an ap8 plicable 2008 or 2009 loss from operations with 

9 respect to which the taxpayer has elected the 

10 application of this paragraph, paragraph (1)(A) 

11 shall be applied, at the election of the taxpayer, 

12 by substituting ‘5’ or ‘4’ for ‘3’. 

13 ‘‘(B) APPLICABLE 2008 OR 2009 LOSS FROM

14 OPERATIONS.—For purposes of this paragraph, 

15 the term ‘applicable 2008 or 2009 loss from op16 erations’ means— 

17 ‘‘(i) the taxpayer’s loss from oper18 ations for any taxable year ending in 2008 

19 or 2009, or 

20 ‘‘(ii) if the taxpayer elects to have this 

21 clause apply in lieu of clause (i), the tax22 payer’s loss from operations for any tax23 able year beginning in 2008 or 2009. 

24 ‘‘(C) ELECTION.—Any election under this 

25 paragraph shall be made in such manner as 


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1 may be prescribed by the Secretary, and shall 

2 be made by the due date (including extension of 

3 time) for filing the taxpayer’s return for the 

4 taxable year of the loss from operations. Any 

5 such election, once made, shall be irrevocable. 

6 ‘‘(D) COORDINATION WITH ALTERNATIVE

7 TAX NET OPERATING LOSS DEDUCTION.—In the 

8 case of a taxpayer who elects to have subpara9 graph (B)(ii) apply, section 56(d)(1)(A)(ii) shall 

10 be applied by substituting ‘ending during 2001 

11 or 2002 or beginning during 2008 or 2009’ for 

12 ‘ending during 2001, 2002, 2008, or 2009’.’’. 

13 (d) CONFORMING AMENDMENT.—Section 172 is 

14 amended by striking subsection (k) and by redesignating 

15 subsection (l) as subsection (k). 

16 (e) EFFECTIVE DATE.— 

17 (1) IN GENERAL.—Except as otherwise pro18 vided in this subsection, the amendments made by 

19 this section shall apply to net operating losses aris20 ing in taxable years ending after December 31, 

21 2007. 

22 (2) ALTERNATIVE TAX NET OPERATING LOSS

23 DEDUCTION.—The amendment made by subsection 

24 (b) shall apply to taxable years ending after 1997. 


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1 (3) LOSS FROM OPERATIONS OF LIFE INSUR2 ANCE COMPANIES.—The amendment made by sub3 section (d) shall apply to losses from operations aris4 ing in taxable years ending after December 31, 

5 2007. 

6 (4) TRANSITIONAL RULE.—In the case of a net 

7 operating loss (or, in the case of a life insurance 

8 company, a loss from operations) for a taxable year 

9 ending before the date of the enactment of this 

10 Act— 

11 (A) any election made under section 

12 172(b)(3) or 810(b)(3) of the Internal Revenue 

13 Code of 1986 with respect to such loss may 

14 (notwithstanding such section) be revoked be15 fore the applicable date, 

16 (B) any election made under section 

17 172(k) or 810(b)(4) of such Code with respect 

18 to such loss shall (notwithstanding such sec19 tion) be treated as timely made if made before 

20 the applicable date, and 

21 (C) any application under section 6411(a) 

22 of such Code with respect to such loss shall be 

23 treated as timely filed if filed before the appli24 cable date. 


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1 For purposes of this paragraph, the term ‘‘applica2 ble date’’ means the date which is 60 days after the 

3 date of the enactment of this Act. 

4 SEC. 1212. EXCEPTION FOR TARP RECIPIENTS. 

5 The amendments made by this part shall not apply 

6 to— 

7 (1) any taxpayer if— 

8 (A) the Federal Government acquires, at 

9 any time, an equity interest in the taxpayer 

10 pursuant to the Emergency Economic Stabiliza11 tion Act of 2008, or 

12 (B) the Federal Government acquires, at 

13 any time, any warrant (or other right) to ac14 quire any equity interest with respect to the 

15 taxpayer pursuant to such Act, 

16 (2) the Federal National Mortgage Association 

17 and the Federal Home Loan Mortgage Corporation, 

18 and 

19 (3) any taxpayer which at any time in 2008 or 

20 2009 is a member of the same affiliated group (as 

21 defined in section 1504 of the Internal Revenue 

22 Code of 1986, determined without regard to sub23 section (b) thereof) as a taxpayer described in para24 graph (1) or (2). 


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1 PART III—INCENTIVES FOR NEW JOBS 

2 SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS 

3 AND DISCONNECTED YOUTH. 

4 (a) IN GENERAL.—Subsection (d) of section 51 is 

5 amended by adding at the end the following new para6 graph: 

7 ‘‘(14) CREDIT ALLOWED FOR UNEMPLOYED

8 VETERANS AND DISCONNECTED YOUTH HIRED IN

9 2009 OR 2010.— 

10 ‘‘(A) IN GENERAL.—Any unemployed vet11 eran or disconnected youth who begins work for 

12 the employer during 2009 or 2010 shall be 

13 treated as a member of a targeted group for 

14 purposes of this subpart. 

15 ‘‘(B) DEFINITIONS.—For purposes of this 

16 paragraph— 

17 ‘‘(i) UNEMPLOYED VETERAN.—The 

18 term ‘unemployed veteran’ means any vet19 eran (as defined in paragraph (3)(B), de20 termined without regard to clause (ii) 

21 thereof) who is certified by the designated 

22 local agency as— 

23 ‘‘(I) having been discharged or 

24 released from active duty in the 

25 Armed Forces during 2008, 2009, or 

26 2010, and 


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1 ‘‘(II) being in receipt of unem2 ployment compensation under State or 

3 Federal law for not less than 4 weeks 

4 during the 1-year period ending on 

5 the hiring date. 

6 ‘‘(ii) DISCONNECTED YOUTH.—The 

7 term ‘disconnected youth’ means any indi8 vidual who is certified by the designated 

9 local agency— 

10 ‘‘(I) as having attained age 16 

11 but not age 25 on the hiring date, 

12 ‘‘(II) as not regularly attending 

13 any secondary, technical, or post-sec14 ondary school during the 6-month pe15 riod preceding the hiring date, 

16 ‘‘(III) as not regularly employed 

17 during such 6-month period, and 

18 ‘‘(IV) as not readily employable 

19 by reason of lacking a sufficient num20 ber of basic skills.’’. 

21 (b) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to individuals who begin work for 

23 the employer after December 31, 2008. 


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1 PART IV—CANCELLATION OF INDEBTEDNESS 

2 SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF IN3 COME ARISING FROM INDEBTEDNESS DIS4 CHARGED BY THE REPURCHASE OF A DEBT 

5 INSTRUMENT. 

6 (a) IN GENERAL.—Section 108 (relating to income 

7 from discharge of indebtedness) is amended by adding at 

8 the end the following new subsection: 

9 ‘‘(i) DEFERRAL AND RATABLE INCLUSION OF IN10 COME ARISING FROM INDEBTEDNESS DISCHARGED BY

11 THE REPURCHASE OF A DEBT INSTRUMENT.— 

12 ‘‘(1) IN GENERAL.—Notwithstanding section 

13 61, income from the discharge of indebtedness in 

14 connection with the repurchase of a debt instrument 

15 after December 31, 2008, and before January 1, 

16 2011, shall be includible in gross income ratably 

17 over the 8-taxable-year period beginning with— 

18 ‘‘(A) in the case of a repurchase occurring 

19 in 2009, the second taxable year following the 

20 taxable year in which the repurchase occurs, 

21 and 

22 ‘‘(B) in the case of a repurchase occurring 

23 in 2010, the taxable year following the taxable 

24 year in which the repurchase occurs. 

25 ‘‘(2) DEBT INSTRUMENT.—For purposes of this 

26 subsection, the term ‘debt instrument’ means a 


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1 bond, debenture, note, certificate, or any other in2 strument or contractual arrangement constituting 

3 indebtedness (within the meaning of section 

4 1275(a)(1)). 

5 ‘‘(3) REPURCHASE.—For purposes of this sub6 section, the term ‘repurchase’ means, with respect to 

7 any debt instrument, a cash purchase of the debt in8 strument by— 

9 ‘‘(A) the debtor which issued the debt in10 strument, or 

11 ‘‘(B) any person related to such debtor. 

12 For purposes of subparagraph (B), the determina13 tion of whether a person is related to another person 

14 shall be made in the same manner as under sub15 section (e)(4). 

16 ‘‘(4) AUTHORITY TO PRESCRIBE REGULA17 TIONS.—The Secretary may prescribe such regula18 tions as may be necessary or appropriate for pur19 poses of applying this subsection.’’. 

20 (b) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to discharges in taxable years end22 ing after December 31, 2008. 


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1 PART V—QUALIFIED SMALL BUSINESS STOCK 

2 SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED 

3 SMALL BUSINESS STOCK FOR 2009 AND 2010. 

4 (a) IN GENERAL.—Section 1202(a) is amended by 

5 adding at the end the following new paragraph: 

6 ‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 

7 the case of qualified small business stock acquired 

8 after the date of the enactment of this paragraph 

9 and before January 1, 2011— 

10 ‘‘(A) paragraph (1) shall be applied by 

11 substituting ‘75 percent’ for ‘50 percent’, and 

12 ‘‘(B) paragraph (2) shall not apply.’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to stock acquired after the date 

15 of the enactment of this Act. 

16 PART VI—PARITY FOR TRANSPORTATION 

17 FRINGE BENEFITS 

18 SEC. 1251. INCREASED EXCLUSION AMOUNT FOR COM19 MUTER TRANSIT BENEFITS AND TRANSIT 

20 PASSES. 

21 (a) IN GENERAL.—Paragraph (2) of section 132(f) 

22 is amended by adding at the end the following flush sen23 tence: 

24 ‘‘In the case of any month beginning on or after the 

25 date of the enactment of this sentence and before 

26 January 1, 2011, subparagraph (A) shall be applied 


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1 as if the dollar amount therein were the same as the 

2 dollar amount under subparagraph (B) (as in effect 

3 for such month).’’. 

4 (b) EFFECTIVE DATE.—The amendment made by 

5 this section shall apply to months beginning on or after 

6 the date of the enactment of this section. 

7 PART VII—S CORPORATIONS 

8 SEC. 1261. TEMPORARY REDUCTION IN RECOGNITION PE9 RIOD FOR BUILT-IN GAINS TAX. 

10 (a) IN GENERAL.—Paragraph (7) of section 1374(d) 

11 (relating to definitions and special rules) is amended to 

12 read as follows: 

13 ‘‘(7) RECOGNITION PERIOD.— 

14 ‘‘(A) IN GENERAL.—The term ‘recognition 

15 period’ means the 10-year period beginning 

16 with the 1st day of the 1st taxable year for 

17 which the corporation was an S corporation. 

18 ‘‘(B) SPECIAL RULE FOR 2009 AND 2010.— 

19 In the case of any taxable year beginning in 

20 2009 or 2010, no tax shall be imposed on the 

21 net unrecognized built-in gain of an S corpora22 tion if the 7th taxable year in the recognition 

23 period preceded such taxable year. The pre24 ceding sentence shall be applied separately with 


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1 respect to any asset to which paragraph (8) ap2 plies. 

3 ‘‘(C) SPECIAL RULE FOR DISTRIBUTIONS

4 TO SHAREHOLDERS.—For purposes of applying 

5 this section to any amount includible in income 

6 by reason of distributions to shareholders pur7 suant to section 593(e)— 

8 ‘‘(i) subparagraph (A) shall be applied 

9 without regard to the phrase ‘10-year’, and 

10 ‘‘(ii) subparagraph (B) shall not 

11 apply.’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2008. 

15 PART VIII—BROADBAND INCENTIVES 

16 SEC. 1271. BROADBAND INTERNET ACCESS TAX CREDIT. 

17 (a) IN GENERAL.—Subpart E of part IV of chapter 

18 1 of the Internal Revenue Code of 1986 (relating to rules 

19 for computing investment credit), as amended by this Act, 

20 is amended by inserting after section 48C the following 

21 new section: 

22 ‘‘SEC. 48D. BROADBAND INTERNET ACCESS CREDIT. 

23 ‘‘(a) GENERAL RULE.—For purposes of section 46, 

24 the broadband credit for any taxable year is the sum of— 


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1 ‘‘(1) the current generation broadband credit, 

2 plus 

3 ‘‘(2) the next generation broadband credit. 

4 ‘‘(b) CURRENT GENERATION BROADBAND CREDIT; 

5 NEXT GENERATION BROADBAND CREDIT.—For purposes 

6 of this section— 

7 ‘‘(1) CURRENT GENERATION BROADBAND

8 CREDIT.—The current generation broadband credit 

9 for any taxable year is equal to 10 percent (20 per10 cent in the case of qualified subscribers which are 

11 unserved subscribers) of the qualified broadband ex12 penditures incurred with respect to qualified equip13 ment providing current generation broadband serv14 ices to qualified subscribers and taken into account 

15 with respect to such taxable year. 

16 ‘‘(2) NEXT GENERATION BROADBAND CRED17 IT.—The next generation broadband credit for any 

18 taxable year is equal to 20 percent of the qualified 

19 broadband expenditures incurred with respect to 

20 qualified equipment providing next generation 

21 broadband services to qualified subscribers and 

22 taken into account with respect to such taxable year. 

23 ‘‘(c) WHEN EXPENDITURES TAKEN INTO AC24 COUNT.—For purposes of this section— 


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1 ‘‘(1) IN GENERAL.—Qualified broadband ex2 penditures with respect to qualified equipment shall 

3 be taken into account with respect to the first tax4 able year in which— 

5 ‘‘(A) current generation broadband services 

6 are provided through such equipment to quali7 fied subscribers, or 

8 ‘‘(B) next generation broadband services 

9 are provided through such equipment to quali10 fied subscribers. 

11 ‘‘(2) LIMITATION.— 

12 ‘‘(A) IN GENERAL.—Qualified broadband 

13 expenditures shall be taken into account under 

14 paragraph (1) only with respect to qualified 

15 equipment— 

16 ‘‘(i) the original use of which com17 mences with the taxpayer, and 

18 ‘‘(ii) which is placed in service, after 

19 December 31, 2008, and before January 1, 

20 2011. 

21 ‘‘(B) SALE-LEASEBACKS.—For purposes of 

22 subparagraph (A), if property— 

23 ‘‘(i) is originally placed in service 

24 after December 31, 2008, by any person, 

25 and 


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1 ‘‘(ii) sold and leased back by such per2 son within 3 months after the date such 

3 property was originally placed in service, 

4 such property shall be treated as originally 

5 placed in service not earlier than the date on 

6 which such property is used under the leaseback 

7 referred to in clause (ii). 

8 ‘‘(d) SPECIAL ALLOCATION RULES FOR CURRENT

9 GENERATION BROADBAND SERVICES.—For purposes of 

10 determining the current generation broadband credit 

11 under subsection (a)(1) with respect to qualified equip12 ment through which current generation broadband serv13 ices are provided, if the qualified equipment is capable of 

14 serving both qualified subscribers and other subscribers, 

15 the qualified broadband expenditures shall be multiplied 

16 by a fraction— 

17 ‘‘(1) the numerator of which is the sum of the 

18 number of potential qualified subscribers within the 

19 rural areas and the underserved areas and the 

20 unserved areas which the equipment is capable of 

21 serving with current generation broadband services, 

22 and 

23 ‘‘(2) the denominator of which is the total po24 tential subscriber population of the area which the 


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1 equipment is capable of serving with current genera2 tion broadband services. 

3 ‘‘(e) DEFINITIONS.—For purposes of this section— 

4 ‘‘(1) ANTENNA.—The term ‘antenna’ means 

5 any device used to transmit or receive signals 

6 through the electromagnetic spectrum, including sat7 ellite equipment. 

8 ‘‘(2) CABLE OPERATOR.—The term ‘cable oper9 ator’ has the meaning given such term by section 

10 602(5) of the Communications Act of 1934 (47 

11 U.S.C. 522(5)). 

12 ‘‘(3) COMMERCIAL MOBILE SERVICE CAR13 RIER.—The term ‘commercial mobile service carrier’ 

14 means any person authorized to provide commercial 

15 mobile radio service as defined in section 20.3 of 

16 title 47, Code of Federal Regulations. 

17 ‘‘(4) CURRENT GENERATION BROADBAND SERV18 ICE.—The term ‘current generation broadband serv19 ice’ means the transmission of signals at a rate of 

20 at least 5,000,000 bits per second to the subscriber 

21 and at least 1,000,000 bits per second from the sub22 scriber (at least 3,000,000 bits per second to the 

23 subscriber and at least 768,000 bits per second from 

24 the subscriber in the case of service through radio 

25 transmission of energy). 


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1 ‘‘(5) MULTIPLEXING OR DEMULTIPLEXING.— 

2 The term ‘multiplexing’ means the transmission of 2 

3 or more signals over a single channel, and the term 

4 ‘demultiplexing’ means the separation of 2 or more 

5 signals previously combined by compatible multi6 plexing equipment. 

7 ‘‘(6) NEXT GENERATION BROADBAND SERV8 ICE.—The term ‘next generation broadband service’ 

9 means the transmission of signals at a rate of at 

10 least 100,000,000 bits per second to the subscriber 

11 (or its equivalent when the data rate is measured be12 fore being compressed for transmission) and at least 

13 20,000,000 bits per second from the subscriber (or 

14 its equivalent as so measured). 

15 ‘‘(7) NONRESIDENTIAL SUBSCRIBER.—The 

16 term ‘nonresidential subscriber’ means any person 

17 who purchases broadband services which are deliv18 ered to the permanent place of business of such per19 son. 

20 ‘‘(8) OPEN VIDEO SYSTEM OPERATOR.—The 

21 term ‘open video system operator’ means any person 

22 authorized to provide service under section 653 of 

23 the Communications Act of 1934 (47 U.S.C. 573). 

24 ‘‘(9) OTHER WIRELESS CARRIER.—The term 

25 ‘other wireless carrier’ means any person (other than 


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1 a telecommunications carrier, commercial mobile 

2 service carrier, cable operator, open video system op3 erator, or satellite carrier) providing current genera4 tion broadband services or next generation 

5 broadband service to subscribers through the radio 

6 transmission of energy. 

7 ‘‘(10) PACKET SWITCHING.—The term ‘packet 

8 switching’ means controlling or routing the path of 

9 a digitized transmission signal which is assembled 

10 into packets or cells. 

11 ‘‘(11) PROVIDER.—The term ‘provider’ means, 

12 with respect to any qualified equipment any— 

13 ‘‘(A) cable operator, 

14 ‘‘(B) commercial mobile service carrier, 

15 ‘‘(C) open video system operator, 

16 ‘‘(D) satellite carrier, 

17 ‘‘(E) telecommunications carrier, or 

18 ‘‘(F) other wireless carrier, 

19 providing current generation broadband services or 

20 next generation broadband services to subscribers 

21 through such qualified equipment. 

22 ‘‘(12) PROVISION OF SERVICES.—A provider 

23 shall be treated as providing services to 1 or more 

24 subscribers if— 


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1 ‘‘(A) such a subscriber has been passed by 

2 the provider’s equipment and can be connected 

3 to such equipment for a standard connection 

4 fee, 

5 ‘‘(B) the provider is physically able to de6 liver current generation broadband services or 

7 next generation broadband services, as applica8 ble, to such a subscriber without making more 

9 than an insignificant investment with respect to 

10 such subscriber, 

11 ‘‘(C) the provider has made reasonable ef12 forts to make such subscribers aware of the 

13 availability of such services, 

14 ‘‘(D) such services have been purchased by 

15 1 or more such subscribers, and 

16 ‘‘(E) such services are made available to 

17 such subscribers at average prices comparable 

18 to those at which the provider makes available 

19 similar services in any areas in which the pro20 vider makes available such services. 

21 ‘‘(13) QUALIFIED EQUIPMENT.— 

22 ‘‘(A) IN GENERAL.—The term ‘qualified 

23 equipment’ means property with respect to 

24 which depreciation (or amortization in lieu of 

25 depreciation) is allowable and which provides 


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1 current generation broadband services or next 

2 generation broadband services— 

3 ‘‘(i) at least a majority of the time 

4 during periods of maximum demand to 

5 each subscriber who is utilizing such serv6 ices, and 

7 ‘‘(ii) in a manner substantially the 

8 same as such services are provided by the 

9 provider to subscribers through equipment 

10 with respect to which no credit is allowed 

11 under subsection (a)(1). 

12 ‘‘(B) ONLY CERTAIN INVESTMENT TAKEN

13 INTO ACCOUNT.—Except as provided in sub14 paragraph (C) or (D), equipment shall be taken 

15 into account under subparagraph (A) only to 

16 the extent it— 

17 ‘‘(i) extends from the last point of 

18 switching to the outside of the unit, build19 ing, dwelling, or office owned or leased by 

20 a subscriber in the case of a telecommuni21 cations carrier or broadband-over-powerline 

22 operator, 

23 ‘‘(ii) extends from the customer side 

24 of the mobile telephone switching office to 

25 a transmission/receive antenna (including 


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1 such antenna) owned or leased by a sub2 scriber in the case of a commercial mobile 

3 service carrier, 

4 ‘‘(iii) extends from the customer side 

5 of the headend to the outside of the unit, 

6 building, dwelling, or office owned or 

7 leased by a subscriber in the case of a 

8 cable operator or open video system oper9 ator, or 

10 ‘‘(iv) extends from a transmission/re11 ceive antenna (including such antenna) 

12 which transmits and receives signals to or 

13 from multiple subscribers, to a trans14 mission/receive antenna (including such 

15 antenna) on the outside of the unit, build16 ing, dwelling, or office owned or leased by 

17 a subscriber in the case of a satellite car18 rier or other wireless carrier, unless such 

19 other wireless carrier is also a tele20 communications carrier. 

21 ‘‘(C) PACKET SWITCHING EQUIPMENT.— 

22 Packet switching equipment, regardless of loca23 tion, shall be taken into account under subpara24 graph (A) only if it is deployed in connection 

25 with equipment described in subparagraph (B) 


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1 and is uniquely designed to perform the func2 tion of packet switching for current generation 

3 broadband services or next generation 

4 broadband services, but only if such packet 

5 switching is the last in a series of such func6 tions performed in the transmission of a signal 

7 to a subscriber or the first in a series of such 

8 functions performed in the transmission of a 

9 signal from a subscriber. 

10 ‘‘(D) MULTIPLEXING AND

11 DEMULTIPLEXING EQUIPMENT.—Multiplexing 

12 and demultiplexing equipment shall be taken 

13 into account under subparagraph (A) only to 

14 the extent it is deployed in connection with 

15 equipment described in subparagraph (B) and 

16 is uniquely designed to perform the function of 

17 multiplexing and demultiplexing packets or cells 

18 of data and making associated application 

19 adaptions, but only if such multiplexing or 

20 demultiplexing equipment is located between 

21 packet switching equipment described in sub22 paragraph (C) and the subscriber’s premises. 

23 ‘‘(14) QUALIFIED BROADBAND EXPENDI24 TURE.— 


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1 ‘‘(A) IN GENERAL.—The term ‘qualified 

2 broadband expenditure’ means any amount— 

3 ‘‘(i) chargeable to capital account with 

4 respect to the purchase and installation of 

5 qualified equipment (including any up6 grades thereto) for which depreciation is 

7 allowable under section 168, and 

8 ‘‘(ii) incurred after December 31, 

9 2008, and before January 1, 2011. 

10 ‘‘(B) CERTAIN SATELLITE EXPENDITURES

11 EXCLUDED.—Such term shall not include any 

12 expenditure with respect to the launching of 

13 any satellite equipment. 

14 ‘‘(C) LEASED EQUIPMENT.—Such term 

15 shall include so much of the purchase price paid 

16 by the lessor of equipment subject to a lease de17 scribed in subsection (c)(2)(B) as is attrib18 utable to expenditures incurred by the lessee 

19 which would otherwise be described in subpara20 graph (A). 

21 ‘‘(15) QUALIFIED SUBSCRIBER.—The term 

22 ‘qualified subscriber’ means— 

23 ‘‘(A) with respect to the provision of cur24 rent generation broadband services— 


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1 ‘‘(i) any nonresidential subscriber 

2 maintaining a permanent place of business 

3 in a rural area, an underserved area, or an 

4 unserved area, or 

5 ‘‘(ii) any residential subscriber resid6 ing in a dwelling located in a rural area, 

7 an underserved area, or an unserved area 

8 which is not a saturated market, and 

9 ‘‘(B) with respect to the provision of next 

10 generation broadband services— 

11 ‘‘(i) any nonresidential subscriber 

12 maintaining a permanent place of business 

13 in a rural area, an underserved area, or an 

14 unserved area , or 

15 ‘‘(ii) any residential subscriber. 

16 ‘‘(16) RESIDENTIAL SUBSCRIBER.—The term 

17 ‘residential subscriber’ means any individual who 

18 purchases broadband services which are delivered to 

19 such individual’s dwelling. 

20 ‘‘(17) RURAL AREA.—The term ‘rural area’ 

21 means any census tract which— 

22 ‘‘(A) is not within 10 miles of any incor23 porated or census designated place containing 

24 more than 25,000 people, and 


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1 ‘‘(B) is not within a county or county 

2 equivalent which has an overall population den3 sity of more than 500 people per square mile of 

4 land. 

5 ‘‘(18) RURAL SUBSCRIBER.—The term ‘rural 

6 subscriber’ means any residential subscriber residing 

7 in a dwelling located in a rural area or nonresiden8 tial subscriber maintaining a permanent place of 

9 business located in a rural area. 

10 ‘‘(19) SATELLITE CARRIER.—The term ‘sat11 ellite carrier’ means any person using the facilities 

12 of a satellite or satellite service licensed by the Fed13 eral Communications Commission and operating in 

14 the Fixed-Satellite Service under part 25 of title 47 

15 of the Code of Federal Regulations or the Direct 

16 Broadcast Satellite Service under part 100 of title 

17 47 of such Code to establish and operate a channel 

18 of communications for distribution of signals, and 

19 owning or leasing a capacity or service on a satellite 

20 in order to provide such point-to-multipoint distribu21 tion. 

22 ‘‘(20) SATURATED MARKET.—The term ‘satu23 rated market’ means any census tract in which, as 

24 of the date of the enactment of this section— 


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1 ‘‘(A) current generation broadband services 

2 have been provided by a single provider to 85 

3 percent or more of the total number of potential 

4 residential subscribers residing in dwellings lo5 cated within such census tract, and 

6 ‘‘(B) such services can be utilized— 

7 ‘‘(i) at least a majority of the time 

8 during periods of maximum demand by 

9 each such subscriber who is utilizing such 

10 services, and 

11 ‘‘(ii) in a manner substantially the 

12 same as such services are provided by the 

13 provider to subscribers through equipment 

14 with respect to which no credit is allowed 

15 under subsection (a)(1). 

16 ‘‘(21) SUBSCRIBER.—The term ‘subscriber’ 

17 means any person who purchases current generation 

18 broadband services or next generation broadband 

19 services. 

20 ‘‘(22) TELECOMMUNICATIONS CARRIER.—The 

21 term ‘telecommunications carrier’ has the meaning 

22 given such term by section 3(44) of the Communica23 tions Act of 1934 (47 U.S.C. 153(44)), but— 


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1 ‘‘(A) includes all members of an affiliated 

2 group of which a telecommunications carrier is 

3 a member, and 

4 ‘‘(B) does not include any commercial mo5 bile service carrier. 

6 ‘‘(23) TOTAL POTENTIAL SUBSCRIBER POPU7 LATION.—The term ‘total potential subscriber popu8 lation’ means, with respect to any area and based on 

9 the most recent census data, the total number of po10 tential residential subscribers residing in dwellings 

11 located in such area and potential nonresidential 

12 subscribers maintaining permanent places of busi13 ness located in such area. 

14 ‘‘(24) UNDERSERVED AREA.—The term ‘under15 served area’ means any census tract which is located 

16 in— 

17 ‘‘(A) an empowerment zone or enterprise 

18 community designated under section 1391, 

19 ‘‘(B) the District of Columbia Enterprise 

20 Zone established under section 1400, 

21 ‘‘(C) a renewal community designated 

22 under section 1400E, or 

23 ‘‘(D) a low-income community designated 

24 under section 45D. 


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1 ‘‘(25) UNDERSERVED SUBSCRIBER.—The term 

2 ‘underserved subscriber’ means any residential sub3 scriber residing in a dwelling located in an under4 served area or nonresidential subscriber maintaining 

5 a permanent place of business located in an under6 served area. 

7 ‘‘(26) UNSERVED AREA.—The term ‘unserved 

8 area’ means any census tract in which no current 

9 generation broadband services are provided, as cer10 tified by the State in which such tract is located not 

11 later than September 30, 2009. 

12 ‘‘(27) UNSERVED SUBSCRIBER.—The term 

13 ‘unserved subscriber’ means any residential sub14 scriber residing in a dwelling located in an unserved 

15 area or nonresidential subscriber maintaining a per16 manent place of business located in an unserved 

17 area.’’. 

18 (b) CREDIT TO BE PART OF INVESTMENT CREDIT.— 

19 Section 46 (relating to the amount of investment credit), 

20 as amended by this Act, is amended by striking ‘‘and’’ 

21 at the end of paragraph (4), by striking the period at the 

22 end of paragraph (5) and inserting ‘‘, and’’, and by adding 

23 at the end the following: 

24 ‘‘(6) the broadband Internet access credit.’’ 


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1 (c) SPECIAL RULE FOR MUTUAL OR COOPERATIVE

2 TELEPHONE COMPANIES.—Section 501(c)(12)(B) (relat3 ing to list of exempt organizations) is amended by striking 

4 ‘‘or’’ at the end of clause (iii), by striking the period at 

5 the end of clause (iv) and inserting ‘‘, or’’, and by adding 

6 at the end the following new clause: 

7 ‘‘(v) from the sale of property subject 

8 to a lease described in section 

9 48D(c)(2)(B), but only to the extent such 

10 income does not in any year exceed an 

11 amount equal to the credit for qualified 

12 broadband expenditures which would be 

13 determined under section 48D for such 

14 year if the mutual or cooperative telephone 

15 company was not exempt from taxation 

16 and was treated as the owner of the prop17 erty subject to such lease.’’. 

18 (d) CONFORMING AMENDMENTS.— 

19 (1) Section 49(a)(1)(C), as amended by this 

20 Act, is amended by striking ‘‘and’’ at the end of 

21 clause (iv), by striking the period at the end of 

22 clause (v) and inserting ‘‘, and’’, and by adding after 

23 clause (v) the following new clause: 

24 ‘‘(vi) the portion of the basis of any 

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AMDT. NO. 98 

1 fied broadband expenditures under section 

2 48D.’’. 

3 (2) The table of sections for subpart E of part 

4 IV of subchapter A of chapter 1, as amended by this 

5 Act, is amended by inserting after the item relating 

6 to section 48C the following: 

‘‘Sec. 48D. Broadband internet access credit’’. 

7 (e) DESIGNATION OF CENSUS TRACTS.— 

8 (1) IN GENERAL.—The Secretary of the Treas9 ury shall, not later than 90 days after the date of 

10 the enactment of this Act, designate and publish 

11 those census tracts meeting the criteria described in 

12 paragraphs (17), (23), (24), and (26) of section 

13 48D(e) of the Internal Revenue Code of 1986 (as 

14 added by this section). In making such designations, 

15 the Secretary of the Treasury shall consult with 

16 such other departments and agencies as the Sec17 retary determines appropriate. 

18 (2) SATURATED MARKET.— 

19 (A) IN GENERAL.—For purposes of desig20 nating and publishing those census tracts meet21 ing the criteria described in subsection (e)(20) 

22 of such section 48D— 

23 (i) the Secretary of the Treasury shall 

24 prescribe not later than 30 days after the 

25 date of the enactment of this Act the form 


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1 upon which any provider which takes the 

2 position that it meets such criteria with re3 spect to any census tract shall submit a 

4 list of such census tracts (and any other 

5 information required by the Secretary) not 

6 later than 60 days after the date of the 

7 publication of such form, and 

8 (ii) the Secretary of the Treasury 

9 shall publish an aggregate list of such cen10 sus tracts submitted and the applicable 

11 providers not later than 30 days after the 

12 last date such submissions are allowed 

13 under clause (i). 

14 (B) NO SUBSEQUENT LISTS REQUIRED.— 

15 The Secretary of the Treasury shall not be re16 quired to publish any list of census tracts meet17 ing such criteria subsequent to the list de18 scribed in subparagraph (A)(ii). 

19 (C) AUTHORITY TO DISREGARD FALSE

20 SUBMISSIONS.—In addition to imposing any 

21 other applicable penalties, the Secretary of the 

22 Treasury shall have the discretion to disregard 

23 any form described in subparagraph (A)(i) on 

24 which a provider knowingly submitted false in25 formation. 


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1 (f) OTHER REGULATORY MATTERS.— 

2 (1) PROHIBITION.—No Federal or State agency 

3 or instrumentality shall adopt regulations or rate4 making procedures that would have the effect of 

5 eliminating or reducing any credit or portion thereof 

6 allowed under section 48D of the Internal Revenue 

7 Code of 1986 (as added by this section) or otherwise 

8 subverting the purpose of this section. 

9 (2) TREASURY REGULATORY AUTHORITY.—It is 

10 the intent of Congress in providing the broadband 

11 Internet access credit under section 48D of the In12 ternal Revenue Code of 1986 (as added by this sec13 tion) to provide incentives for the purchase, installa14 tion, and connection of equipment and facilities of15 fering expanded broadband access to the Internet for 

16 users in certain low income and rural areas of the 

17 United States, as well as to residential users nation18 wide, in a manner that maintains competitive neu19 trality among the various classes of providers of 

20 broadband services. Accordingly, the Secretary of 

21 the Treasury shall prescribe such regulations as may 

22 be necessary or appropriate to carry out the pur23 poses of section 48D of such Code, including— 

24 (A) regulations to determine how and when 

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1 penditures satisfies the requirements of section 

2 48D of such Code to provide broadband serv3 ices, and 

4 (B) regulations describing the information, 

5 records, and data taxpayers are required to pro6 vide the Secretary to substantiate compliance 

7 with the requirements of section 48D of such 

8 Code. 

9 (g) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to expenditures incurred after De11 cember 31, 2008. 

12 PART IX—CLARIFICATION OF REGULATIONS RE13 LATED TO LIMITATIONS ON CERTAIN BUILT14 IN LOSSES FOLLOWING AN OWNERSHIP 

15 CHANGE 

16 SEC. 1281. CLARIFICATION OF REGULATIONS RELATED TO 

17 LIMITATIONS ON CERTAIN BUILT-IN LOSSES 

18 FOLLOWING AN OWNERSHIP CHANGE. 

19 (a) FINDINGS.—Congress finds as follows: 

20 (1) The delegation of authority to the Secretary 

21 of the Treasury under section 382(m) of the Inter22 nal Revenue Code of 1986 does not authorize the 

23 Secretary to provide exemptions or special rules that 

24 are restricted to particular industries or classes of 

25 taxpayers. 


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1 (2) Internal Revenue Service Notice 2008–83 is 

2 inconsistent with the congressional intent in enact3 ing such section 382(m). 

4 (3) The legal authority to prescribe Internal 

5 Revenue Service Notice 2008–83 is doubtful. 

6 (4) However, as taxpayers should generally be 

7 able to rely on guidance issued by the Secretary of 

8 the Treasury legislation is necessary to clarify the 

9 force and effect of Internal Revenue Service Notice 

10 2008–83 and restore the proper application under 

11 the Internal Revenue Code of 1986 of the limitation 

12 on built-in losses following an ownership change of 

13 a bank. 

14 (b) DETERMINATION OF FORCE AND EFFECT OF IN15 TERNAL REVENUE SERVICE NOTICE 2008–83 EXEMPT16 ING BANKS FROM LIMITATION ON CERTAIN BUILT–IN

17 LOSSES FOLLOWING OWNERSHIP CHANGE.— 

18 (1) IN GENERAL.—Internal Revenue Service 

19 Notice 2008–83— 

20 (A) shall be deemed to have the force and 

21 effect of law with respect to any ownership 

22 change (as defined in section 382(g) of the In23 ternal Revenue Code of 1986) occurring on or 

24 before January 16, 2009, and 


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AMDT. NO. 98 

1 (B) shall have no force or effect with re2 spect to any ownership change after such date. 

3 (2) BINDING CONTRACTS.—Notwithstanding 

4 paragraph (1), Internal Revenue Service Notice 

5 2008–83 shall have the force and effect of law with 

6 respect to any ownership change (as so defined) 

7 which occurs after January 16, 2009, if such 

8 change— 

9 (A) is pursuant to a written binding con10 tract entered into on or before such date, or 

11 (B) is pursuant to a written agreement en12 tered into on or before such date and such 

13 agreement was described on or before such date 

14 in a public announcement or in a filing with the 

15 Securities and Exchange Commission required 

16 by reason of such ownership change. 

17 Subtitle D—Manufacturing 

18 Recovery Provisions 

19 SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF 

20 INDUSTRIAL DEVELOPMENT BONDS TO FA21 CILITIES MANUFACTURING INTANGIBLE 

22 PROPERTY. 

23 (a) IN GENERAL.—Subparagraph (C) of section 

24 144(a)(12) is amended— 


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1 (1) by striking ‘‘For purposes of this para2 graph, the term’’ and inserting ‘‘For purposes of 

3 this paragraph— 

4 ‘‘(i) IN GENERAL.—The term’’, and 

5 (2) by striking the last sentence and inserting 

6 the following new clauses: 

7 ‘‘(ii) CERTAIN FACILITIES IN8 CLUDED.—Such term includes facilities 

9 which are directly related and ancillary to 

10 a manufacturing facility (determined with11 out regard to this clause) if— 

12 ‘‘(I) such facilities are located on 

13 the same site as the manufacturing 

14 facility, and 

15 ‘‘(II) not more than 25 percent 

16 of the net proceeds of the issue are 

17 used to provide such facilities. 

18 ‘‘(iii) SPECIAL RULES FOR BONDS

19 ISSUED IN 2009 AND 2010.—In the case of 

20 any issue made after the date of enactment 

21 of this clause and before January 1, 2011, 

22 clause (ii) shall not apply and the net pro23 ceeds from a bond shall be considered to 

24 be used to provide a manufacturing facility 

25 if such proceeds are used to provide— 


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AMDT. NO. 98 

1 ‘‘(I) a facility which is used in 

2 the creation or production of intan3 gible property which is described in 

4 section 197(d)(1)(C)(iii), or 

5 ‘‘(II) a facility which is function6 ally related and subordinate to a man7 ufacturing facility (determined with8 out regard to this subclause) if such 

9 facility is located on the same site as 

10 the manufacturing facility.’’. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to bonds issued after the date of 

13 the enactment of this Act. 

14 SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED EN15 ERGY FACILITIES. 

16 (a) IN GENERAL.—Section 46 (relating to amount of 

17 credit) is amended by striking ‘‘and’’ at the end of para18 graph (3), by striking the period at the end of paragraph 

19 (4), and by adding at the end the following new para20 graph: 

21 ‘‘(5) the qualifying advanced energy project 

22 credit.’’. 

23 (b) AMOUNT OF CREDIT.—Subpart E of part IV of 

24 subchapter A of chapter 1 (relating to rules for computing 


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AMDT. NO. 98 

1 investment credit) is amended by inserting after section 

2 48B the following new section: 

3 ‘‘SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT 

4 CREDIT. 

5 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

6 qualifying advanced energy project credit for any taxable 

7 year is an amount equal to 30 percent of the qualified 

8 investment for such taxable year with respect to any quali9 fying advanced energy project of the taxpayer. 

10 ‘‘(b) QUALIFIED INVESTMENT.— 

11 ‘‘(1) IN GENERAL.—For purposes of subsection 

12 (a), the qualified investment for any taxable year is 

13 the basis of eligible property placed in service by the 

14 taxpayer during such taxable year which is part of 

15 a qualifying advanced energy project— 

16 ‘‘(A)(i) the construction, reconstruction, or 

17 erection of which is completed by the taxpayer 

18 after October 31, 2008, or 

19 ‘‘(ii) which is acquired by the taxpayer if 

20 the original use of such eligible property com21 mences with the taxpayer after October 31, 

22 2008, and 

23 ‘‘(B) with respect to which depreciation (or 

24 amortization in lieu of depreciation) is allow25 able. 


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1 ‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED

2 PROPERTY.—Rules similar to section 48(a)(4) (with3 out regard to subparagraph (D) thereof) shall apply 

4 for purposes of this section. 

5 ‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI6 TURES RULES MADE APPLICABLE.—Rules similar to 

7 the rules of subsections (c)(4) and (d) of section 46 

8 (as in effect on the day before the enactment of the 

9 Revenue Reconciliation Act of 1990) shall apply for 

10 purposes of this section. 

11 ‘‘(4) LIMITATION.—The amount which is treat12 ed for all taxable years with respect to any quali13 fying advanced energy project shall not exceed the 

14 amount designated by the Secretary as eligible for 

15 the credit under this section. 

16 ‘‘(c) DEFINITIONS.— 

17 ‘‘(1) QUALIFYING ADVANCED ENERGY

18 PROJECT.— 

19 ‘‘(A) IN GENERAL.—The term ‘qualifying 

20 advanced energy project’ means a project— 

21 ‘‘(i) which re-equips, expands, or es22 tablishes a manufacturing facility for the 

23 production of property which is— 

24 ‘‘(I) designed to be used to 

25 produce energy from the sun, wind, 


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1 geothermal deposits (within the mean2 ing of section 613(e)(2)), or other re3 newable resources, 

4 ‘‘(II) designed to manufacture 

5 fuel cells, microturbines, or an energy 

6 storage system for use with electric or 

7 hybrid-electric motor vehicles, 

8 ‘‘(III) designed to manufacture 

9 electric grids to support the trans10 mission of intermittent sources of re11 newable energy, 

12 ‘‘(IV) designed to capture and se13 quester carbon dioxide emissions, or 

14 ‘‘(V) designed to refine or blend 

15 renewable fuels or to produce energy 

16 conservation technologies (including 

17 energy-conserving lighting tech18 nologies and smart grid technologies), 

19 and 

20 ‘‘(ii) any portion of the qualified in21 vestment of which is certified by the Sec22 retary under subsection (d) as eligible for 

23 a credit under this section. 

24 ‘‘(B) EXCEPTION.—Such term shall not in25 clude any portion of a project for the producVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00519 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 tion of any property which is used in the refin2 ing or blending of any transportation fuel 

3 (other than renewable fuels). 

4 ‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligible 

5 property’ means any property which is part of a 

6 qualifying advanced energy project and is necessary 

7 for the production of property described in para8 graph (1)(A)(i). 

9 ‘‘(d) QUALIFYING ADVANCED ENERGY PROJECT

10 PROGRAM.— 

11 ‘‘(1) ESTABLISHMENT.— 

12 ‘‘(A) IN GENERAL.—Not later than 180 

13 days after the date of enactment of this section, 

14 the Secretary, in consultation with the Sec15 retary of Energy, shall establish a qualifying 

16 advanced energy project program to consider 

17 and award certifications for qualified invest18 ments eligible for credits under this section to 

19 qualifying advanced energy project sponsors. 

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

21 credits that may be allocated under the pro22 gram shall not exceed $2,000,000,000. 

23 ‘‘(2) CERTIFICATION.— 

24 ‘‘(A) APPLICATION PERIOD.—Each appli25 cant for certification under this paragraph shall 


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1 submit an application containing such informa2 tion as the Secretary may require during the 3- 

3 year period beginning on the date the Secretary 

4 establishes the program under paragraph (1). 

5 ‘‘(B) TIME TO MEET CRITERIA FOR CER6 TIFICATION.—Each applicant for certification 

7 shall have 2 years from the date of acceptance 

8 by the Secretary of the application during 

9 which to provide to the Secretary evidence that 

10 the requirements of the certification have been 

11 met. 

12 ‘‘(C) PERIOD OF ISSUANCE.—An applicant 

13 which receives a certification shall have 5 years 

14 from the date of issuance of the certification in 

15 order to place the project in service and if such 

16 project is not placed in service by that time pe17 riod then the certification shall no longer be 

18 valid. 

19 ‘‘(3) SELECTION CRITERIA.—In determining 

20 which qualifying advanced energy projects to certify 

21 under this section, the Secretary shall take into con22 sideration only those projects where there is a rea23 sonable expectation of commercial viability. 

24 ‘‘(4) REVIEW AND REDISTRIBUTION.— 


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1 ‘‘(A) REVIEW.—Not later than 6 years 

2 after the date of enactment of this section, the 

3 Secretary shall review the credits allocated 

4 under this section as of the date which is 6 

5 years after the date of enactment of this sec6 tion. 

7 ‘‘(B) REDISTRIBUTION.—The Secretary 

8 may reallocate credits awarded under this sec9 tion if the Secretary determines that— 

10 ‘‘(i) there is an insufficient quantity 

11 of qualifying applications for certification 

12 pending at the time of the review, or 

13 ‘‘(ii) any certification made pursuant 

14 to paragraph (2) has been revoked pursu15 ant to paragraph (2)(B) because the 

16 project subject to the certification has been 

17 delayed as a result of third party opposi18 tion or litigation to the proposed project. 

19 ‘‘(C) REALLOCATION.—If the Secretary de20 termines that credits under this section are 

21 available for reallocation pursuant to the re22 quirements set forth in paragraph (2), the Sec23 retary is authorized to conduct an additional 

24 program for applications for certification. 


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1 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec2 retary shall, upon making a certification under this 

3 subsection, publicly disclose the identity of the appli4 cant and the amount of the credit with respect to 

5 such applicant. 

6 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—A credit shall 

7 not be allowed under this section for any qualified invest8 ment for which a credit is allowed under section 48, 48A, 

9 or 48B.’’. 

10 (c) CONFORMING AMENDMENTS.— 

11 (1) Section 49(a)(1)(C) is amended by striking 

12 ‘‘and’’ at the end of clause (iii), by striking the pe13 riod at the end of clause (iv) and inserting ‘‘, and’’, 

14 and by adding after clause (iv) the following new 

15 clause: 

16 ‘‘(v) the basis of any property which 

17 is part of a qualifying advanced energy 

18 project under section 48C.’’. 

19 (2) The table of sections for subpart E of part 

20 IV of subchapter A of chapter 1 is amended by in21 serting after the item relating to section 48B the fol22 lowing new item: 

‘‘48C. Qualifying advanced energy project credit.’’. 

23 (d) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to periods after the date of the 

25 enactment of this Act, under rules similar to the rules of 


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1 section 48(m) of the Internal Revenue Code of 1986 (as 

2 in effect on the day before the date of the enactment of 

3 the Revenue Reconciliation Act of 1990). 

4 Subtitle E—Economic Recovery 

5 Tools 

6 SEC. 1401. RECOVERY ZONE BONDS. 

7 (a) IN GENERAL.—Subchapter Y of chapter 1 is 

8 amended by adding at the end the following new part: 

9 ‘‘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. 

10 ‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. 

11 ‘‘(a) ALLOCATIONS.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall allo13 cate the national recovery zone economic develop14 ment bond limitation and the national recovery zone 

15 facility bond limitation among the States— 

16 ‘‘(A) by allocating 1 percent of each such 

17 limitation to each State, and 

18 ‘‘(B) by allocating the remainder of each 

19 such limitation among the States in the propor20 tion that each State’s 2008 State employment 

21 decline bears to the aggregate of the 2008 

22 State employment declines for all of the States. 

23 ‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For 

24 purposes of this subsection, the term ‘2008 State 


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1 employment decline’ means, with respect to any 

2 State, the excess (if any) of— 

3 ‘‘(A) the number of individuals employed 

4 in such State determined for December 2007, 

5 over 

6 ‘‘(B) the number of individuals employed 

7 in such State determined for December 2008. 

8 ‘‘(3) ALLOCATIONS BY STATES.— 

9 ‘‘(A) IN GENERAL.—Each State with re10 spect to which an allocation is made under 

11 paragraph (1) shall reallocate such allocation 

12 among the counties and large municipalities in 

13 such State in the proportion the each such 

14 county’s or municipality’s 2008 employment de15 cline bears to the aggregate of the 2008 em16 ployment declines for all the counties and mu17 nicipalities in such State. 

18 ‘‘(B) LARGE MUNICIPALITIES.—For pur19 poses of subparagraph (A), the term ‘large mu20 nicipality’ means a municipality with a popu21 lation of more than 100,000. 

22 ‘‘(C) DETERMINATION OF LOCAL EMPLOY23 MENT DECLINES.—For purposes of this para24 graph, the employment decline of any munici25 pality or county shall be determined in the 


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1 same manner as determining the State employ2 ment decline under paragraph (2), except that 

3 in the case of a municipality any portion of 

4 which is in a county, such portion shall be 

5 treated as part of such municipality and not 

6 part of such county. 

7 ‘‘(4) NATIONAL LIMITATIONS.— 

8 ‘‘(A) RECOVERY ZONE ECONOMIC DEVEL9 OPMENT BONDS.—There is a national recovery 

10 zone economic development bond limitation of 

11 $10,000,000,000. 

12 ‘‘(B) RECOVERY ZONE FACILITY BONDS.— 

13 There is a national recovery zone facility bond 

14 limitation of $15,000,000,000. 

15 ‘‘(b) RECOVERY ZONE.—For purposes of this part, 

16 the term ‘recovery zone’ means— 

17 ‘‘(1) any area designated by the issuer as hav18 ing significant poverty, unemployment, rate of home 

19 foreclosures, or general distress, and 

20 ‘‘(2) any area for which a designation as an em21 powerment zone or renewal community is in effect. 

22 ‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT 

23 BONDS. 

24 ‘‘(a) IN GENERAL.—In the case of a recovery zone 

25 economic development bond— 


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1 ‘‘(1) such bond shall be treated as a qualified 

2 bond for purposes of section 6431, and 

3 ‘‘(2) subsection (b) of such section shall be ap4 plied by substituting ‘40 percent’ for ‘35 percent’. 

5 ‘‘(b) RECOVERY ZONE ECONOMIC DEVELOPMENT

6 BOND.— 

7 ‘‘(1) IN GENERAL.—For purposes of this sec8 tion, the term ‘recovery zone economic development 

9 bond’ means any build America bond (as defined in 

10 section 54AA(d)) issued before January 1, 2011, as 

11 part of issue if— 

12 ‘‘(A) 100 percent of the available project 

13 proceeds (as defined in section 54A) of such 

14 issue are to be used for one or more qualified 

15 economic development purposes, and 

16 ‘‘(B) the issuer designates such bond for 

17 purposes of this section. 

18 ‘‘(2) LIMITATION ON AMOUNT OF BONDS DES19 IGNATED.—The maximum aggregate face amount of 

20 bonds which may be designated by any issuer under 

21 paragraph (1) shall not exceed the amount of the re22 covery zone economic development bond limitation 

23 allocated to such issuer under section 1400U–1. 

24 ‘‘(c) QUALIFIED ECONOMIC DEVELOPMENT PUR25 POSE.—For purposes of this section, the term ‘qualified 


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1 economic development purpose’ means expenditures for 

2 purposes of promoting development or other economic ac3 tivity in a recovery zone, including— 

4 ‘‘(1) capital expenditures paid or incurred with 

5 respect to property located in such zone, 

6 ‘‘(2) expenditures for public infrastructure and 

7 construction of public facilities, and 

8 ‘‘(3) expenditures for job training and edu9 cational programs. 

10 ‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. 

11 ‘‘(a) IN GENERAL.—For purposes of part IV of sub12 chapter B (relating to tax exemption requirements for 

13 State and local bonds), the term ‘exempt facility bond’ in14 cludes any recovery zone facility bond. 

15 ‘‘(b) RECOVERY ZONE FACILITY BOND.— 

16 ‘‘(1) IN GENERAL.—For purposes of this sec17 tion, the term ‘recovery zone facility bond’ means 

18 any bond issued as part of an issue if— 

19 ‘‘(A) 95 percent or more of the net pro20 ceeds (as defined in section 150(a)(3)) of such 

21 issue are to be used for recovery zone property, 

22 ‘‘(B) such bond is issued before January 1, 

23 2011, and 

24 ‘‘(C) the issuer designates such bond for 

25 purposes of this section. 


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AMDT. NO. 98 

1 ‘‘(2) LIMITATION ON AMOUNT OF BONDS DES2 IGNATED.—The maximum aggregate face amount of 

3 bonds which may be designated by any issuer under 

4 paragraph (1) shall not exceed the amount of recov5 ery zone facility bond limitation allocated to such 

6 issuer under section 1400U–1. 

7 ‘‘(c) RECOVERY ZONE PROPERTY.—For purposes of 

8 this section— 

9 ‘‘(1) IN GENERAL.—The term ‘recovery zone 

10 property’ means any property to which section 168 

11 applies (or would apply but for section 179) if— 

12 ‘‘(A) such property was acquired by the 

13 taxpayer by purchase (as defined in section 

14 179(d)(2)) after the date on which the designa15 tion of the recovery zone took effect, 

16 ‘‘(B) the original use of which in the recov17 ery zone commences with the taxpayer, and 

18 ‘‘(C) substantially all of the use of which 

19 is in the recovery zone and is in the active con20 duct of a qualified business by the taxpayer in 

21 such zone. 

22 ‘‘(2) QUALIFIED BUSINESS.—The term ‘quali23 fied business’ means any trade or business except 

24 that— 


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1 ‘‘(A) the rental to others of real property 

2 located in a recovery zone shall be treated as a 

3 qualified business only if the property is not 

4 residential rental property (as defined in section 

5 168(e)(2)), and 

6 ‘‘(B) such term shall not include any trade 

7 or business consisting of the operation of any 

8 facility described in section 144(c)(6)(B). 

9 ‘‘(3) SPECIAL RULES FOR SUBSTANTIAL REN10 OVATIONS AND SALE-LEASEBACK.—Rules similar to 

11 the rules of subsections (a)(2) and (b) of section 

12 1397D shall apply for purposes of this subsection. 

13 ‘‘(d) NONAPPLICATION OF CERTAIN RULES.—Sec14 tions 146 (relating to volume cap) and 147(d) (relating 

15 to acquisition of existing property not permitted) shall not 

16 apply to any recovery zone facility bond.’’. 

17 (b) CLERICAL AMENDMENT.—The table of parts for 

18 subchapter Y of chapter 1 of such Code is amended by 

19 adding at the end the following new item: 

‘‘PART III. RECOVERY ZONE BONDS.’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to obligations issued after the date 

22 of the enactment of this Act. 

23 SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS. 

24 (a) IN GENERAL.—Section 7871 is amended by add25 ing at the end the following new subsection: 


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1 ‘‘(f) TRIBAL ECONOMIC DEVELOPMENT BONDS.— 

2 ‘‘(1) ALLOCATION OF LIMITATION.— 

3 ‘‘(A) IN GENERAL.—The Secretary shall 

4 allocate the national tribal economic develop5 ment bond limitation among the Indian tribal 

6 governments in such manner as the Secretary, 

7 in consultation with the Secretary of the Inte8 rior, determines appropriate. 

9 ‘‘(B) NATIONAL LIMITATION.—There is a 

10 national tribal economic development bond limi11 tation of $2,000,000,000. 

12 ‘‘(2) BONDS TREATED AS EXEMPT FROM

13 TAX.—In the case of a tribal economic development 

14 bond— 

15 ‘‘(A) notwithstanding subsection (c), such 

16 bond shall be treated for purposes of this title 

17 in the same manner as if such bond were issued 

18 by a State, 

19 ‘‘(B) the Indian tribal government issuing 

20 such bond and any instrumentality of such In21 dian tribal government shall be treated as a 

22 State for purposes of section 141, and 

23 ‘‘(C) section 146 shall not apply. 

24 ‘‘(3) TRIBAL ECONOMIC DEVELOPMENT

25 BOND.— 


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1 ‘‘(A) IN GENERAL.—For purposes of this 

2 section, the term ‘tribal economic development 

3 bond’ means any bond issued by an Indian trib4 al government— 

5 ‘‘(i) the interest on which would be ex6 empt from tax under section 103 if issued 

7 by a State or local government, and 

8 ‘‘(ii) which is designated by the In9 dian tribal government as a tribal eco10 nomic development bond for purposes of 

11 this subsection. 

12 ‘‘(B) EXCEPTIONS.—The term tribal eco13 nomic development bond shall not include any 

14 bond issued as part of an issue if any portion 

15 of the proceeds of such issue are used to fi16 nance— 

17 ‘‘(i) any portion of a building in which 

18 class II or class III gaming (as defined in 

19 section 4 of the Indian Gaming Regulatory 

20 Act) is conducted or housed or any other 

21 property actually used in the conduct of 

22 such gaming, or 

23 ‘‘(ii) any facility located outside the 

24 Indian reservation (as defined in section 

25 168(j)(6)). 


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AMDT. NO. 98 

1 ‘‘(C) LIMITATION ON AMOUNT OF BONDS

2 DESIGNATED.—The maximum aggregate face 

3 amount of bonds which may be designated by 

4 any Indian tribal government under subpara5 graph (A) shall not exceed the amount of na6 tional tribal economic development bond limita7 tion allocated to such government under para8 graph (1).’’. 

9 (b) STUDY.—The Secretary of the Treasury, or the 

10 Secretary’s delegate, shall conduct a study of the effects 

11 of the amendment made by subsection (a). Not later than 

12 1 year after the date of the enactment of this Act, the 

13 Secretary of the Treasury, or the Secretary’s delegate, 

14 shall report to Congress on the results of the study con15 ducted under this paragraph, including the Secretary’s 

16 recommendations regarding such amendment. 

17 (c) EFFECTIVE DATE.—The amendment made by 

18 subsection (a) shall apply to obligations issued after the 

19 date of the enactment of this Act. 

20 SEC. 1403. MODIFICATIONS TO NEW MARKETS TAX CREDIT. 

21 (a) INCREASE IN NATIONAL LIMITATION.— 

22 (1) IN GENERAL.—Section 45D(f)(1) is amend23 ed— 

24 (A) by striking ‘‘and’’ at the end of sub25 paragraph (C), 


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AMDT. NO. 98 

1 (B) by striking ‘‘, 2007, 2008, and 2009.’’ 

2 in subparagraph (D), and inserting ‘‘and 

3 2007,’’, and 

4 (C) by adding at the end the following new 

5 subparagraphs: 

6 ‘‘(E) $5,000,000,000 for 2008, and 

7 ‘‘(F) $5,000,000,000 for 2009.’’. 

8 (2) SPECIAL RULE FOR ALLOCATION OF IN9 CREASED 2008 LIMITATION.—The amount of the in10 crease in the new markets tax credit limitation for 

11 calendar year 2008 by reason of the amendments 

12 made by subsection (a) shall be allocated in accord13 ance with section 45D(f)(2) of the Internal Revenue 

14 Code of 1986 to qualified community development 

15 entities (as defined in section 45D(c) of such Code) 

16 which— 

17 (A) submitted an allocation application 

18 with respect to calendar year 2008, and 

19 (B)(i) did not receive an allocation for 

20 such calendar year, or 

21 (ii) received an allocation for such calendar 

22 year in an amount less than the amount re23 quested in the allocation application. 

24 (b) ALTERNATIVE MINIMUM TAX RELIEF.— 


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1 (1) IN GENERAL.—Section 38(c)(4)(B) is 

2 amended by redesignating clauses (v) through (viii) 

3 as clauses (vi) through (ix), respectively, and by in4 serting after clause (iv) the following new clause: 

5 ‘‘(v) the credit determined under sec6 tion 45D to the extent that such credit is 

7 attributable to a qualified equity invest8 ment which is designated as such under 

9 section 45D(b)(1)(C) pursuant to an allo10 cation of the new markets tax credit limi11 tation for calendar year 2009,’’. 

12 (2) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply to credits determined 

14 under section 45D of the Internal Revenue Code of 

15 1986 in taxable years ending after the date of the 

16 enactment of this Act, and to carrybacks of such 

17 credits. 


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1 Subtitle F—Infrastructure 

2 Financing Tools 

3 PART I—IMPROVED MARKETABILITY FOR TAX4 EXEMPT BONDS 

5 SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX6 EXEMPT INTEREST EXPENSE OF FINANCIAL 

7 INSTITUTIONS. 

8 (a) IN GENERAL.—Subsection (b) of section 265 is 

9 amended by adding at the end the following new para10 graph: 

11 ‘‘(7) DE MINIMIS EXCEPTION FOR BONDS

12 ISSUED DURING 2009 OR 2010.— 

13 ‘‘(A) IN GENERAL.—In applying paragraph 

14 (2)(A), there shall not be taken into account 

15 tax-exempt obligations issued during 2009 or 

16 2010. 

17 ‘‘(B) LIMITATION.—The amount of tax-ex18 empt obligations not taken into account by rea19 son of subparagraph (A) shall not exceed 2 per20 cent of the amount determined under para21 graph (2)(B). 

22 ‘‘(C) REFUNDINGS.—For purposes of this 

23 paragraph, a refunding bond (whether a current 

24 or advance refunding) shall be treated as issued 

25 on the date of the issuance of the refunded 


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1 bond (or in the case of a series of refundings, 

2 the original bond).’’. 

3 (b) TREATMENT AS FINANCIAL INSTITUTION PREF4 ERENCE ITEM.—Clause (iv) of section 291(e)(1)(B) is 

5 amended by adding at the end the following: ‘‘That por6 tion of any obligation not taken into account under para7 graph (2)(A) of section 265(b) by reason of paragraph (7) 

8 of such section shall be treated for purposes of this section 

9 as having been acquired on August 7, 1986.’’. 

10 (c) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to obligations issued after Decem12 ber 31, 2008. 

13 SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION 

14 TO TAX-EXEMPT INTEREST EXPENSE ALLOCA15 TION RULES FOR FINANCIAL INSTITUTIONS. 

16 (a) IN GENERAL.—Paragraph (3) of section 265(b) 

17 (relating to exception for certain tax-exempt obligations) 

18 is amended by adding at the end the following new sub19 paragraph: 

20 ‘‘(G) SPECIAL RULES FOR OBLIGATIONS

21 ISSUED DURING 2009 AND 2010.— 

22 ‘‘(i) INCREASE IN LIMITATION.—In 

23 the case of obligations issued during 2009 

24 or 2010, subparagraphs (C)(i), (D)(i), and 


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1 (D)(iii)(II) shall each be applied by sub2 stituting ‘$30,000,000’ for ‘$10,000,000’. 

3 ‘‘(ii) QUALIFIED 501(c)(3) BONDS

4 TREATED AS ISSUED BY EXEMPT ORGANI5 ZATION.—In the case of a qualified 

6 501(c)(3) bond (as defined in section 145) 

7 issued during 2009 or 2010, this para8 graph shall be applied by treating the 

9 501(c)(3) organization for whose benefit 

10 such bond was issued as the issuer. 

11 ‘‘(iii) SPECIAL RULE FOR QUALIFIED

12 FINANCINGS.—In the case of a qualified fi13 nancing issue issued during 2009 or 

14 2010— 

15 ‘‘(I) subparagraph (F) shall not 

16 apply, and 

17 ‘‘(II) any obligation issued as a 

18 part of such issue shall be treated as 

19 a qualified tax-exempt obligation if 

20 the requirements of this paragraph 

21 are met with respect to each qualified 

22 portion of the issue (determined by 

23 treating each qualified portion as a 

24 separate issue which is issued by the 


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1 qualified borrower with respect to 

2 which such portion relates). 

3 ‘‘(iv) QUALIFIED FINANCING ISSUE.— 

4 For purposes of this subparagraph, the 

5 term ‘qualified financing issue’ means any 

6 composite, pooled, or other conduit financ7 ing issue the proceeds of which are used 

8 directly or indirectly to make or finance 

9 loans to 1 or more ultimate borrowers each 

10 of whom is a qualified borrower. 

11 ‘‘(v) QUALIFIED PORTION.—For pur12 poses of this subparagraph, the term 

13 ‘qualified portion’ means that portion of 

14 the proceeds which are used with respect 

15 to each qualified borrower under the issue. 

16 ‘‘(vi) QUALIFIED BORROWER.—For 

17 purposes of this subparagraph, the term 

18 ‘qualified borrower’ means a borrower 

19 which is a State or political subdivision 

20 thereof or an organization described in sec21 tion 501(c)(3) and exempt from taxation 

22 under section 501(a).’’. 

23 (b) EFFECTIVE DATE.—The amendment made by 

24 this section shall apply to obligations issued after Decem25 ber 31, 2008. 


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1 SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE 

2 MINIMUM TAX LIMITATIONS ON TAX-EXEMPT 

3 BONDS. 

4 (a) INTEREST ON PRIVATE ACTIVITY BONDS ISSUED

5 DURING 2009 AND 2010 NOT TREATED AS TAX PREF6 ERENCE ITEM.—Subparagraph (C) of section 57(a)(5) is 

7 amended by adding at the end a new clause: 

8 ‘‘(vi) EXCEPTION FOR BONDS ISSUED

9 IN 2009 AND 2010.—For purposes of clause 

10 (i), the term ‘private activity bond’ shall 

11 not include any bond issued after Decem12 ber 31, 2008, and before January 1, 2011. 

13 For purposes of the preceding sentence, a 

14 refunding bond (whether a current or ad15 vance refunding) shall be treated as issued 

16 on the date of the issuance of the refunded 

17 bond (or in the case of a series of 

18 refundings, the original bond).’’. 

19 (b) NO ADJUSTMENT TO ADJUSTED CURRENT

20 EARNINGS FOR INTEREST ON TAX-EXEMPT BONDS

21 ISSUED DURING 2009 AND 2010.—Subparagraph (B) of 

22 section 56(g)(4) is amended by adding at the end the fol23 lowing new clause: 

24 ‘‘(iv) TAX EXEMPT INTEREST ON

25 BONDS ISSUED IN 2009 AND 2010.—Clause 

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1 est on a bond issued after December 31, 

2 2008, and before January 1, 2011. For 

3 purposes of the preceding sentence, a re4 funding bond (whether a current or ad5 vance refunding) shall be treated as issued 

6 on the date of the issuance of the refunded 

7 bond (or in the case of a series of 

8 refundings, the original bond).’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to obligations issued after Decem11 ber 31, 2008. 

12 SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL 

13 FACILITY BONDS. 

14 (a) IN GENERAL.—Paragraph (1) of section 142(i) 

15 is amended by striking ‘‘operate at speeds in excess of’’ 

16 and inserting ‘‘be capable of attaining a maximum speed 

17 in excess of’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall apply to bonds issued after the date of 

20 the enactment of this Act. 


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AMDT. NO. 98 

1 PART II—DELAY IN APPLICATION OF WITH2 HOLDING TAX ON GOVERNMENT CONTRAC3 TORS 

4 SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX 

5 ON GOVERNMENT CONTRACTORS. 

6 Subsection (b) of section 511 of the Tax Increase 

7 Prevention and Reconciliation Act of 2005 is amended by 

8 striking ‘‘December 31, 2010’’ and inserting ‘‘December 

9 31, 2011’’. 

10 PART III—TAX CREDIT BONDS FOR SCHOOLS 

11 SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

12 (a) IN GENERAL.—Subpart I of part IV of sub13 chapter A of chapter 1 is amended by adding at the end 

14 the following new section: 

15 ‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

16 ‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.— 

17 For purposes of this subchapter, the term ‘qualified school 

18 construction bond’ means any bond issued as part of an 

19 issue if— 

20 ‘‘(1) 100 percent of the available project pro21 ceeds of such issue are to be used for the construc22 tion, rehabilitation, or repair of a public school facil23 ity or for the acquisition of land on which such a fa24 cility is to be constructed with part of the proceeds 

25 of such issue, 


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AMDT. NO. 98 

1 ‘‘(2) the bond is issued by a State or local gov2 ernment within the jurisdiction of which such school 

3 is located, and 

4 ‘‘(3) the issuer designates such bond for pur5 poses of this section. 

6 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES7 IGNATED.—The maximum aggregate face amount of 

8 bonds issued during any calendar year which may be des9 ignated under subsection (a) by any issuer shall not exceed 

10 the limitation amount allocated under subsection (d) for 

11 such calendar year to such issuer. 

12 ‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS

13 DESIGNATED.—There is a national qualified school con14 struction bond limitation for each calendar year. Such lim15 itation is— 

16 ‘‘(1) $5,000,000,000 for 2009, 

17 ‘‘(2) $5,000,000,000 for 2010, and 

18 ‘‘(3) except as provided in subsection (e), zero 

19 after 2010. 

20 ‘‘(d) LIMITATION ALLOCATED AMONG STATES.— 

21 ‘‘(1) IN GENERAL.—The limitation applicable 

22 under subsection (c) for any calendar year shall be 

23 allocated by the Secretary among the States in pro24 portion to the respective numbers of children in each 

25 State who have attained age 5 but not age 18 for 


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AMDT. NO. 98 

1 the most recent fiscal year ending before such cal2 endar year. The limitation amount allocated to a 

3 State under the preceding sentence shall be allocated 

4 by the State to issuers within such State. 

5 ‘‘(2) MINIMUM ALLOCATIONS TO STATES.— 

6 ‘‘(A) IN GENERAL.—The Secretary shall 

7 adjust the allocations under this subsection for 

8 any calendar year for each State to the extent 

9 necessary to ensure that the amount allocated 

10 to such State under this subsection for such 

11 year is not less than an amount equal to such 

12 State’s adjusted minimum percentage of the 

13 amount to be allocated under paragraph (1) for 

14 the calendar year. 

15 ‘‘(B) MINIMUM PERCENTAGE.—A State’s 

16 minimum percentage for any calendar year is 

17 equal to the product of— 

18 ‘‘(i) the quotient of— 

19 ‘‘(I) the amount the State is eli20 gible to receive under section 1124(d) 

21 of the Elementary and Secondary 

22 Education Act of 1965 (20 U.S.C. 

23 6333(d)) for the most recent fiscal 

24 year ending before such calendar year, 

25 divided by 


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AMDT. NO. 98 

1 ‘‘(II) the amount all States are 

2 eligible to receive under section 1124 

3 of such Act (20 U.S.C. 6333) for such 

4 fiscal year, multiplied by 

5 ‘‘(ii) 100. 

6 ‘‘(3) ALLOCATIONS TO CERTAIN POSSES7 SIONS.—The amount to be allocated under para8 graph (1) to any possession of the United States 

9 other than Puerto Rico shall be the amount which 

10 would have been allocated if all allocations under 

11 paragraph (1) were made on the basis of respective 

12 populations of individuals below the poverty line (as 

13 defined by the Office of Management and Budget). 

14 In making other allocations, the amount to be allo15 cated under paragraph (1) shall be reduced by the 

16 aggregate amount allocated under this paragraph to 

17 possessions of the United States. 

18 ‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In 

19 addition to the amounts otherwise allocated under 

20 this subsection, $200,000,000 for calendar year 

21 2009, and $200,000,000 for calendar year 2010, 

22 shall be allocated by the Secretary of the Interior for 

23 purposes of the construction, rehabilitation, and re24 pair of schools funded by the Bureau of Indian Af25 fairs. In the case of amounts allocated under the 


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1 preceding sentence, Indian tribal governments (as 

2 defined in section 7701(a)(40)) shall be treated as 

3 qualified issuers for purposes of this subchapter. 

4 ‘‘(e) CARRYOVER OF UNUSED LIMITATION.—If for 

5 any calendar year— 

6 ‘‘(1) the amount allocated under subsection (d) 

7 to any State, exceeds 

8 ‘‘(2) the amount of bonds issued during such 

9 year which are designated under subsection (a) pur10 suant to such allocation, 

11 the limitation amount under such subsection for such 

12 State for the following calendar year shall be increased 

13 by the amount of such excess. A similar rule shall apply 

14 to the amounts allocated under subsection (d)(4).’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) Paragraph (1) of section 54A(d) is amended 

17 by striking ‘‘or’’ at the end of subparagraph (C), by 

18 inserting ‘‘or’’ at the end of subparagraph (D), and 

19 by inserting after subparagraph (D) the following 

20 new subparagraph: 

21 ‘‘(E) a qualified school construction 

22 bond,’’. 

23 (2) Subparagraph (C) of section 54A(d)(2) is 

24 amended by striking ‘‘and’’ at the end of clause (iii), 

25 by striking the period at the end of clause (iv) and 


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1 inserting ‘‘, and’’, and by adding at the end the fol2 lowing new clause: 

3 ‘‘(v) in the case of a qualified school 

4 construction bond, a purpose specified in 

5 section 54F(a)(1).’’. 

6 (3) The table of sections for subpart I of part 

7 IV of subchapter A of chapter 1 is amended by add8 ing at the end the following new item: 

‘‘Sec. 54F. Qualified school construction bonds.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to obligations issued after the date 

11 of the enactment of this Act. 

12 SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED 

13 ZONE ACADEMY BONDS. 

14 (a) IN GENERAL.—Section 54E(c)(1) is amended by 

15 striking ‘‘and 2009’’ and inserting ‘‘and $1,400,000,000 

16 for 2009 and 2010’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to obligations issued after Decem19 ber 31, 2008. 

20 PART IV—BUILD AMERICA BONDS 

21 SEC. 1531. BUILD AMERICA BONDS. 

22 (a) IN GENERAL.—Part IV of subchapter A of chap23 ter 1 is amended by adding at the end the following new 

24 subpart: 


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1 ‘‘Subpart J—Build America Bonds 

‘‘Sec. 54AA. Build America bonds. 

2 ‘‘SEC. 54AA. BUILD AMERICA BONDS. 

3 ‘‘(a) IN GENERAL.—If a taxpayer holds a build 

4 America bond on one or more interest payment dates of 

5 the bond during any taxable year, there shall be allowed 

6 as a credit against the tax imposed by this chapter for 

7 the taxable year an amount equal to the sum of the credits 

8 determined under subsection (b) with respect to such 

9 dates. 

10 ‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 

11 determined under this subsection with respect to any in12 terest payment date for a build America bond is 35 per13 cent of the amount of interest payable by the issuer with 

14 respect to such date. 

15 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 

16 ‘‘(1) IN GENERAL.—The credit allowed under 

17 subsection (a) for any taxable year shall not exceed 

18 the excess of— 

19 ‘‘(A) the sum of the regular tax liability 

20 (as defined in section 26(b)) plus the tax im21 posed by section 55, over 

22 ‘‘(B) the sum of the credits allowable 

23 under this part (other than subpart C and this 

24 subpart). 


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1 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

2 credit allowable under subsection (a) exceeds the 

3 limitation imposed by paragraph (1) for such taxable 

4 year, such excess shall be carried to the succeeding 

5 taxable year and added to the credit allowable under 

6 subsection (a) for such taxable year (determined be7 fore the application of paragraph (1) for such suc8 ceeding taxable year). 

9 ‘‘(d) BUILD AMERICA BOND.— 

10 ‘‘(1) IN GENERAL.—For purposes of this sec11 tion, the term ‘build America bond’ means any obli12 gation (other than a private activity bond) if— 

13 ‘‘(A) the interest on such obligation would 

14 (but for this section) be excludable from gross 

15 income under section 103, 

16 ‘‘(B) such obligation is issued before Janu17 ary 1, 2012, and 

18 ‘‘(C) the issuer makes an irrevocable elec19 tion to have this section apply. 

20 ‘‘(2) APPLICABLE RULES.—For purposes of ap21 plying paragraph (1)— 

22 ‘‘(A) a build America bond shall not be 

23 treated as federally guaranteed by reason of the 

24 credit allowed under subsection (a) or section 

25 6431, 


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AMDT. NO. 98 

1 ‘‘(B) the yield on a build America bond 

2 shall be determined without regard to the credit 

3 allowed under subsection (a), and 

4 ‘‘(C) a bond shall not be treated as a build 

5 America bond if the issue price has more than 

6 a de minimis amount (determined under rules 

7 similar to the rules of section 1273(a)(3)) of 

8 premium over the stated principal amount of 

9 the bond. 

10 ‘‘(e) INTEREST PAYMENT DATE.—For purposes of 

11 this section, the term ‘interest payment date’ means any 

12 date on which the holder of record of the build America 

13 bond is entitled to a payment of interest under such bond. 

14 ‘‘(f) SPECIAL RULES.— 

15 ‘‘(1) INTEREST ON BUILD AMERICA BONDS IN16 CLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME

17 TAX PURPOSES.—For purposes of this title, interest 

18 on any build America bond shall be includible in 

19 gross income. 

20 ‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 

21 similar to the rules of subsections (f), (g), (h), and 

22 (i) of section 54A shall apply for purposes of the 

23 credit allowed under subsection (a). 


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1 ‘‘(g) SPECIAL RULE FOR QUALIFIED BONDS ISSUED

2 BEFORE 2011.—In the case of a qualified bond issued be3 fore January 1, 2011— 

4 ‘‘(1) ISSUER ALLOWED REFUNDABLE CRED5 IT.—In lieu of any credit allowed under this section 

6 with respect to such bond, the issuer of such bond 

7 shall be allowed a credit as provided in section 6431. 

8 ‘‘(2) QUALIFIED BOND.—For purposes of this 

9 subsection, the term ‘qualified bond’ means any 

10 build America bond issued as part of an issue if— 

11 ‘‘(A) 100 percent of the available project 

12 proceeds (as defined in section 54A) of such 

13 issue are to be used for capital expenditures, 

14 and 

15 ‘‘(B) the issuer makes an irrevocable elec16 tion to have this subsection apply. 

17 ‘‘(h) REGULATIONS.—The Secretary may prescribe 

18 such regulations and other guidance as may be necessary 

19 or appropriate to carry out this section and section 

20 6431.’’. 

21 (b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE

22 2011.—Subchapter B of chapter 65 is amended by adding 

23 at the end the following new section: 


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1 ‘‘SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO 

2 ISSUER. 

3 ‘‘(a) IN GENERAL.—In the case of a qualified bond 

4 issued before January 1, 2011, the issuer of such bond 

5 shall be allowed a credit with respect to each interest pay6 ment under such bond which shall be payable by the Sec7 retary as provided in subsection (b). 

8 ‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay 

9 (contemporaneously with each interest payment date 

10 under such bond) to the issuer of such bond (or to any 

11 person who makes such interest payments on behalf of the 

12 issuer) 35 percent of the interest payable under such bond 

13 on such date. 

14 ‘‘(c) APPLICATION OF ARBITRAGE RULES.—For pur15 poses of section 148, the yield on a qualified bond shall 

16 be reduced by the credit allowed under this section. 

17 ‘‘(d) INTEREST PAYMENT DATE.—For purposes of 

18 this subsection, the term ‘interest payment date’ means 

19 each date on which interest is payable by the issuer under 

20 the terms of the bond. 

21 ‘‘(e) QUALIFIED BOND.—For purposes of this sub22 section, the term ‘qualified bond’ has the meaning given 

23 such term in section 54AA(g).’’. 

24 (c) CONFORMING AMENDMENTS.— 


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1 (1) Section 1324(b)(2) of title 31, United 

2 States Code, is amended by striking ‘‘or 6428’’ and 

3 inserting ‘‘6428, or 6431,’’. 

4 (2) Section 54A(c)(1)(B) is amended by strik5 ing ‘‘subpart C’’ and inserting ‘‘subparts C and J’’. 

6 (3) Sections 54(c)(2), 1397E(c)(2), and 

7 1400N(l)(3)(B) are each amended by striking ‘‘and 

8 I’’ and inserting ‘‘, I, and J’’. 

9 (4) Section 6401(b)(1) is amended by striking 

10 ‘‘and I’’ and inserting ‘‘I, and J’’. 

11 (5) The table of subparts for part IV of sub12 chapter A of chapter 1 is amended by adding at the 

13 end the following new item: 

‘‘Subpart J. Build America bonds.’’. 

14 (6) The table of section for subchapter B of 

15 chapter 65 is amended by adding at the end the fol16 lowing new item: 

‘‘Sec. 6431. Credit for qualified bonds allowed to issuer.’’. 

17 (d) TRANSITIONAL COORDINATION WITH STATE

18 LAW.—Except as otherwise provided by a State after the 

19 date of the enactment of this Act, the interest on any build 

20 America bond (as defined in section 54AA of the Internal 

21 Revenue Code of 1986, as added by this section) and the 

22 amount of any credit determined under such section with 

23 respect to such bond shall be treated for purposes of the 


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AMDT. NO. 98 

1 income tax laws of such State as being exempt from Fed2 eral income tax. 

3 (e) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to obligations issued after the date 

5 of the enactment of this Act. 

6 Subtitle G—Economic Recovery 

7 Payments to Certain Individuals 

8 SEC. 1601. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS 

9 OF SOCIAL SECURITY, SUPPLEMENTAL SECU10 RITY INCOME, RAILROAD RETIREMENT BENE11 FITS, AND VETERANS DISABILITY COMPENSA12 TION OR PENSION BENEFITS. 

13 (a) AUTHORITY TO MAKE PAYMENTS.— 

14 (1) ELIGIBILITY.— 

15 (A) IN GENERAL.—Subject to paragraph 

16 (5)(B), the Secretary of the Treasury shall 

17 make a $300 payment to each individual who, 

18 for any month during the 3-month period end19 ing with the month which ends prior to the 

20 month that includes the date of the enactment 

21 of this Act, is entitled to a benefit payment de22 scribed in clause (i), (ii), or (iii) of subpara23 graph (B) or is eligible for a SSI cash benefit 

24 described in subparagraph (C). 


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1 (B) BENEFIT PAYMENT DESCRIBED.—For 

2 purposes of subparagraph (A): 

3 (i) TITLE II BENEFIT.—A benefit pay4 ment described in this clause is a monthly 

5 insurance benefit payable (without regard 

6 to sections 202(j)(1) and 223(b) of the So7 cial Security Act (42 U.S.C. 402(j)(1), 

8 423(b)) under— 

9 (I) section 202(a) of such Act 

10 (42 U.S.C. 402(a)); 

11 (II) section 202(b) of such Act 

12 (42 U.S.C. 402(b)); 

13 (III) section 202(c) of such Act 

14 (42 U.S.C. 402(c)); 

15 (IV) section 202(d)(1)(B)(ii) of 

16 such Act (42 U.S.C. 

17 402(d)(1)(B)(ii)); 

18 (V) section 202(e) of such Act 

19 (42 U.S.C. 402(e)); 

20 (VI) section 202(f) of such Act 

21 (42 U.S.C. 402(f)); 

22 (VII) section 202(g) of such Act 

23 (42 U.S.C. 402(g)); 

24 (VIII) section 202(h) of such Act 

25 (42 U.S.C. 402(h)); 


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AMDT. NO. 98 

1 (IX) section 223(a) of such Act 

2 (42 U.S.C. 423(a)); 

3 (X) section 227 of such Act (42 

4 U.S.C. 427); or 

5 (XI) section 228 of such Act (42 

6 U.S.C. 428). 

7 (ii) RAILROAD RETIREMENT BEN8 EFIT.—A benefit payment described in this 

9 clause is a monthly annuity or pension 

10 payment payable (without regard to section 

11 5(a)(ii) of the Railroad Retirement Act of 

12 1974 (45 U.S.C. 231d(a)(ii)) under— 

13 (I) section 2(a)(1) of such Act 

14 (45 U.S.C. 231a(a)(1)); 

15 (II) section 2(c) of such Act (45 

16 U.S.C. 231a(c)); 

17 (III) section 2(d)(1)(i) of such 

18 Act (45 U.S.C. 231a(d)(1)(i)); 

19 (IV) section 2(d)(1)(ii) of such 

20 Act (45 U.S.C. 231a(d)(1)(ii)); 

21 (V) section 2(d)(1)(iii)(C) of such 

22 Act to an adult disabled child (45 

23 U.S.C. 231a(d)(1)(iii)(C)); 

24 (VI) section 2(d)(1)(iv) of such 

25 Act (45 U.S.C. 231a(d)(1)(iv)); 


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AMDT. NO. 98 

1 (VII) section 2(d)(1)(v) of such 

2 Act (45 U.S.C. 231a(d)(1)(v)); or 

3 (VIII) section 7(b)(2) of such Act 

4 (45 U.S.C. 231f(b)(2)) with respect to 

5 any of the benefit payments described 

6 in clause (i) of this subparagraph. 

7 (iii) VETERANS BENEFIT.—A benefit 

8 payment described in this clause is a com9 pensation or pension payment payable 

10 under— 

11 (I) section 1110, 1117, 1121, 

12 1131, 1141, or 1151 of title 38, 

13 United States Code; 

14 (II) section 1310, 1312, 1313, 

15 1315, 1316, or 1318 of title 38, 

16 United States Code; 

17 (III) section 1513, 1521, 1533, 

18 1536, 1537, 1541, 1542, or 1562 of 

19 title 38, United States Code; or 

20 (IV) section 1805, 1815, or 1821 

21 of title 38, United States Code, 

22 to a veteran, surviving spouse, child, or 

23 parent as described in paragraph (2), (3), 

24 (4)(A)(ii), or (5) of section 101, title 38, 

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1 efit during any month within the 3 month 

2 period ending with the month which ends 

3 prior to the month that includes the date 

4 of the enactment of this Act. 

5 (C) SSI CASH BENEFIT DESCRIBED.—A 

6 SSI cash benefit described in this subparagraph 

7 is a cash benefit payable under section 1611 

8 (other than under subsection (e)(1)(B) of such 

9 section) or 1619(a) of the Social Security Act 

10 (42 U.S.C. 1382, 1382h). 

11 (2) REQUIREMENT.—A payment shall be made 

12 under paragraph (1) only to individuals who reside 

13 in 1 of the 50 States, the District of Columbia, 

14 Puerto Rico, Guam, the United States Virgin Is15 lands, American Samoa, or the Northern Mariana 

16 Islands. For purposes of the preceding sentence, the 

17 determination of the individual’s residence shall be 

18 based on the current address of record under a pro19 gram specified in paragraph (1). 

20 (3) NO DOUBLE PAYMENTS.—An individual 

21 shall be paid only 1 payment under this section, re22 gardless of whether the individual is entitled to, or 

23 eligible for, more than 1 benefit or cash payment de24 scribed in paragraph (1). 


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1 (4) LIMITATION.—A payment under this section 

2 shall not be made— 

3 (A) in the case of an individual entitled to 

4 a benefit specified in paragraph (1)(B)(i) or 

5 paragraph (1)(B)(ii)(VIII) if, for the most re6 cent month of such individual’s entitlement in 

7 the 3-month period described in paragraph (1), 

8 such individual’s benefit under such paragraph 

9 was not payable by reason of subsection (x) or 

10 (y) of section 202 the Social Security Act (42 

11 U.S.C. 402) or section 1129A of such Act (42 

12 U.S.C. 1320a-8a); 

13 (B) in the case of an individual entitled to 

14 a benefit specified in paragraph (1)(B)(iii) if, 

15 for the most recent month of such individual’s 

16 entitlement in the 3 month period described in 

17 paragraph (1), such individual’s benefit under 

18 such paragraph was not payable, or was re19 duced, by reason of section 1505, 5313, or 

20 5313B of title 38, United States Code; 

21 (C) in the case of an individual entitled to 

22 a benefit specified in paragraph (1)(C) if, for 

23 such most recent month, such individual’s ben24 efit under such paragraph was not payable by 

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1 tion 1611 (42 U.S.C. 1382) or section 1129A 

2 of such Act (42 U.S.C. 1320a-8a); or 

3 (D) in the case of any individual whose 

4 date of death occurs before the date on which 

5 the individual is certified under subsection (b) 

6 to receive a payment under this section. 

7 (5) TIMING AND MANNER OF PAYMENTS.— 

8 (A) IN GENERAL.—The Secretary of the 

9 Treasury shall commence making payments 

10 under this section at the earliest practicable 

11 date but in no event later than 120 days after 

12 the date of enactment of this Act. The Sec13 retary of the Treasury may make any payment 

14 electronically to an individual in such manner 

15 as if such payment was a benefit payment or 

16 cash benefit to such individual under the appli17 cable program described in subparagraph (B) 

18 or (C) of paragraph (1). 

19 (B) DEADLINE.—No payments shall be 

20 made under this section after December 31, 

21 2010, regardless of any determinations of enti22 tlement to, or eligibility for, such payments 

23 made after such date. 

24 (b) IDENTIFICATION OF RECIPIENTS.—The Commis25 sioner of Social Security, the Railroad Retirement Board, 


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1 and the Secretary of Veterans Affairs shall certify the in2 dividuals entitled to receive payments under this section 

3 and provide the Secretary of the Treasury with the infor4 mation needed to disburse such payments. A certification 

5 of an individual shall be unaffected by any subsequent de6 termination or redetermination of the individual’s entitle7 ment to, or eligibility for, a benefit specified in subpara8 graph (B) or (C) of subsection (a)(1). 

9 (c) TREATMENT OF PAYMENTS.— 

10 (1) PAYMENT TO BE DISREGARDED FOR PUR11 POSES OF ALL FEDERAL AND FEDERALLY ASSISTED

12 PROGRAMS.—A payment under subsection (a) shall 

13 not be regarded as income and shall not be regarded 

14 as a resource for the month of receipt and the fol15 lowing 9 months, for purposes of determining the 

16 eligibility of the recipient (or the recipient’s spouse 

17 or family) for benefits or assistance, or the amount 

18 or extent of benefits or assistance, under any Fed19 eral program or under any State or local program fi20 nanced in whole or in part with Federal funds. 

21 (2) PAYMENT NOT CONSIDERED INCOME FOR

22 PURPOSES OF TAXATION.—A payment under sub23 section (a) shall not be considered as gross income 

24 for purposes of the Internal Revenue Code of 1986. 


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1 (3) PAYMENTS PROTECTED FROM ASSIGN2 MENT.—The provisions of sections 207 and 

3 1631(d)(1) of the Social Security Act (42 U.S.C. 

4 407, 1383(d)(1)), section 14(a) of the Railroad Re5 tirement Act of 1974 (45 U.S.C. 231m(a)), and sec6 tion 5301 of title 38, United States Code, shall 

7 apply to any payment made under subsection (a) as 

8 if such payment was a benefit payment or cash ben9 efit to such individual under the applicable program 

10 described in subparagraph (B) or (C) of subsection 

11 (a)(1). 

12 (4) PAYMENTS SUBJECT TO OFFSET.—Notwith13 standing paragraph (3), for purposes of section 

14 3716 of title 31, United States Code, any payment 

15 made under this section shall not be considered a 

16 benefit payment or cash benefit made under the ap17 plicable program described in subparagraph (B) or 

18 (C) of subsection (a)(1) and all amounts paid shall 

19 be subject to offset to collect delinquent debts. 

20 (d) PAYMENT TO REPRESENTATIVE PAYEES AND FI21 DUCIARIES.— 

22 (1) IN GENERAL.—In any case in which an in23 dividual who is entitled to a payment under sub24 section (a) and whose benefit payment or cash ben25 efit described in paragraph (1) of that subsection is 


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1 paid to a representative payee or fiduciary, the pay2 ment under subsection (a) shall be made to the indi3 vidual’s representative payee or fiduciary and the en4 tire payment shall be used only for the benefit of the 

5 individual who is entitled to the payment. 

6 (2) APPLICABILITY.— 

7 (A) PAYMENT ON THE BASIS OF A TITLE

8 II OR SSI BENEFIT.—Section 1129(a)(3) of the 

9 Social Security Act (42 U.S.C. 1320a–8(a)(3)) 

10 shall apply to any payment made on the basis 

11 of an entitlement to a benefit specified in para12 graph (1)(B)(i) or (1)(C) of subsection (a) in 

13 the same manner as such section applies to a 

14 payment under title II or XVI of such Act. 

15 (B) PAYMENT ON THE BASIS OF A RAIL16 ROAD RETIREMENT BENEFIT.—Section 13 of 

17 the Railroad Retirement Act (45 U.S.C. 231l) 

18 shall apply to any payment made on the basis 

19 of an entitlement to a benefit specified in para20 graph (1)(B)(ii) of subsection (a) in the same 

21 manner as such section applies to a payment 

22 under such Act. 

23 (C) PAYMENT ON THE BASIS OF A VET24 ERANS BENEFIT.—Sections 5502, 6106, and 

25 6108 of title 38, United States Code, shall 


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1 apply to any payment made on the basis of an 

2 entitlement to a benefit specified in paragraph 

3 (1)(B)(iii) of subsection (a) in the same manner 

4 as those sections apply to a payment under that 

5 title. 

6 (e) APPROPRIATION.—Out of any sums in the Treas7 ury of the United States not otherwise appropriated, the 

8 following sums are appropriated for the period of fiscal 

9 years 2009 and 2010 to carry out this section: 

10 (1) For the Secretary of the Treasury— 

11 (A) such sums as may be necessary to 

12 make payments under this section; and 

13 (B) $57,000,000 for administrative costs 

14 incurred in carrying out this section and section 

15 36A of the Internal Revenue Code of 1986 (as 

16 added by this Act). 

17 (2) For the Commissioner of Social Security, 

18 $90,000,000 for the Social Security Administration’s 

19 Limitation on Administrative Expenses for costs in20 curred in carrying out this section. 

21 (3) For the Railroad Retirement Board, 

22 $1,000,000 for administrative costs incurred in car23 rying out this section. 

24 (4) For the Secretary of Veterans Affairs, 

25 $100,000 for the Information Systems Technology 


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1 account and $7,100,000 for the General Operating 

2 Expenses account for administrative costs incurred 

3 in carrying out this section. 

4 Subtitle H—Trade Adjustment 

5 Assistance 

6 SEC. 1701. TEMPORARY EXTENSION OF TRADE ADJUST7 MENT ASSISTANCE PROGRAM. 

8 (a) ASSISTANCE FOR WORKERS.— 

9 (1) IN GENERAL.—Section 245(a) of the Trade 

10 Act of 1974 (19 U.S.C. 2317(a)) is amended by 

11 striking ‘‘December 31, 2007’’ and inserting ‘‘De12 cember 31, 2010’’. 

13 (2) ALTERNATIVE TRADE ADJUSTMENT ASSIST14 ANCE.—Section 246(b)(1) of the Trade Act of 1974 

15 (19 U.S.C. 2318(b)(1)) is amended by striking ‘‘5 

16 years’’ and inserting ‘‘7 years’’. 

17 (b) ASSISTANCE FOR FIRMS.—Section 256(b) of the 

18 Trade Act of 1974 (19 U.S.C. 2346(b)) is amended by 

19 striking ‘‘2007, and $4,000,000 for the 3-month period 

20 beginning on October 1, 2007,’’ and inserting ‘‘December 

21 31, 2010’’. 

22 (c) ASSISTANCE FOR FARMERS.—Section 298(a) of 

23 the Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended 

24 by striking ‘‘through 2007’’ and all that follows through 


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1 the end period and inserting ‘‘through December 31, 2010 

2 to carry out the purposes of this chapter.’’. 

3 (d) EXTENSION OF TERMINATION DATES.—Section 

4 285 of the Trade Act of 1974 (19 U.S.C. 2271 note) is 

5 amended by striking ‘‘December 31, 2007’’ each place it 

6 appears and inserting ‘‘December 31, 2010’’. 

7 (e) SENSE OF THE SENATE REGARDING ADJUST8 MENT ASSISTANCE FOR COMMUNITIES.—It is the sense 

9 of the Senate that title II of the Trade Act of 1974 (19 

10 U.S.C. 2271 et seq.) should be amended to assist any com11 munity impacted by trade with economic adjustment 

12 through— 

13 (1) the coordination of efforts by State and 

14 local governments and economic organizations; 

15 (2) the coordination of Federal, State, and local 

16 resources; 

17 (3) the creation of community-based develop18 ment strategies; and 

19 (4) the development and provision of training 

20 programs. 

21 (f) EFFECTIVE DATE.—The amendments made by 

22 this section shall be effective as of January 1, 2008. 


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1 Subtitle I—Prohibition on Collec2 tion of Certain Payments Made 

3 Under the Continued Dumping 

4 and Subsidy Offset Act of 2000 

5 SEC. 1801. PROHIBITION ON COLLECTION OF CERTAIN PAY6 MENTS MADE UNDER THE CONTINUED DUMP7 ING AND SUBSIDY OFFSET ACT OF 2000. 

8 (a) IN GENERAL.—Notwithstanding any other provi9 sion of law, neither the Secretary of Homeland Security 

10 nor any other person may— 

11 (1) require repayment of, or attempt in any 

12 other way to recoup, any payments described in sub13 section (b); or 

14 (2) offset any past, current, or future distribu15 tions of antidumping or countervailing duties as16 sessed with respect to imports from countries that 

17 are not parties to the North American Free Trade 

18 Agreement in an attempt to recoup any payments 

19 described in subsection (b). 

20 (b) PAYMENTS DESCRIBED.—Payments described in 

21 this subsection are payments of antidumping or counter22 vailing duties made pursuant to the Continued Dumping 

23 and Subsidy Offset Act of 2000 (section 754 of the Tariff 

24 Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of 


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1 title VII of the Deficit Reduction Act of 2005 (Public Law 

2 109–171; 120 Stat. 154))) that were— 

3 (1) assessed and paid on imports of goods from 

4 countries that are parties to the North American 

5 Free Trade Agreement; and 

6 (2) distributed on or after January 1, 2001, 

7 and before January 1, 2006. 

8 (c) PAYMENT OF FUNDS COLLECTED OR WITH9 HELD.—Not later than the date that is 60 days after the 

10 date of the enactment of this Act, the Secretary of Home11 land Security shall— 

12 (1) refund any repayments, or any other 

13 recoupment, of payments described in subsection (b); 

14 and 

15 (2) fully distribute any antidumping or counter16 vailing duties that the U.S. Customs and Border 

17 Protection is withholding as an offset as described in 

18 subsection (a)(2). 

19 (d) LIMITATION.—Nothing in this section shall be 

20 construed to prevent the Secretary of Homeland Security, 

21 or any other person, from requiring repayment of, or at22 tempting to otherwise recoup, any payments described in 

23 subsection (b) as a result of— 

24 (1) a finding of false statements or other mis25 conduct by a recipient of such a payment; or 


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1 (2) the reliquidation of an entry with respect to 

2 which such a payment was made. 

3 Subtitle J—Other Provisions 

4 SEC. 1901. APPLICATION OF CERTAIN LABOR STANDARDS 

5 TO PROJECTS FINANCED WITH CERTAIN TAX6 FAVORED BONDS. 

7 Subchapter IV of chapter 31 of the title 40, United 

8 States Code, shall apply to projects financed with the pro9 ceeds of— 

10 (1) any new clean renewable energy bond (as 

11 defined in section 54C of the Internal Revenue Code 

12 of 1986) issued after the date of the enactment of 

13 this Act, 

14 (2) any qualified energy conservation bond (as 

15 defined in section 54D of the Internal Revenue Code 

16 of 1986) issued after the date of the enactment of 

17 this Act, 

18 (3) any qualified zone academy bond (as de19 fined in section 54E of the Internal Revenue Code 

20 of 1986) issued after the date of the enactment of 

21 this Act, 

22 (4) any qualified school construction bond (as 

23 defined in section 54F of the Internal Revenue Code 

24 of 1986), and 


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1 (5) any recovery zone economic development 

2 bond (as defined in section 1400U–2 of the Internal 

3 Revenue Code of 1986). 

4 SEC. 1902. INCREASE IN PUBLIC DEBT LIMIT. 

5 Subsection (b) of section 3101 of title 31, United 

6 States Code, is amended by striking out the dollar limita7 tion contained in such subsection and inserting 

8 ‘‘$12,140,000,000,000’’. 

9 TITLE II—ASSISTANCE FOR UN10 EMPLOYED WORKERS AND 

11 STRUGGLING FAMILIES 

12 SEC. 2000. SHORT TITLE; TABLE OF CONTENTS. 

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

14 ‘‘Assistance for Unemployed Workers and Struggling 

15 Families Act’’. 

16 (b) TABLE OF CONTENTS.—The table of contents for 

17 this title is as follows: 

TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND 

STRUGGLING FAMILIES 

Sec. 2000. Short title; table of contents. 

Subtitle A—Unemployment Insurance 

Sec. 2001. Extension of emergency unemployment compensation program. 

Sec. 2002. Increase in unemployment compensation benefits. 

Sec. 2003. Unemployment compensation modernization. 

Sec. 2004. Temporary assistance for States with advances. 

Subtitle B—Assistance for Vulnerable Individuals 

Sec. 2101. Emergency fund for TANF program. 

Sec. 2102. Extension of TANF supplemental grants. 

Sec. 2103. Clarification of authority of states to use tanf funds carried over 

from prior years to provide tanf benefits and services. 


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Sec. 2104. Temporary reinstatement of authority to provide Federal matching 

payments for State spending of child support incentive payments. 

1 Subtitle A—Unemployment 

2 Insurance 

3 SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT 

4 COMPENSATION PROGRAM. 

5 (a) IN GENERAL.—Section 4007 of the Supplemental 

6 Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 

7 3304 note), as amended by section 4 of the Unemployment 

8 Compensation Extension Act of 2008 (Public Law 110- 

9 449; 122 Stat. 5015), is amended— 

10 (1) by striking ‘‘March 31, 2009’’ each place it 

11 appears and inserting ‘‘December 31, 2009’’; 

12 (2) in the heading for subsection (b)(2), by 

13 striking ‘‘MARCH 31, 2009’’ and inserting ‘‘DECEM14 BER 31, 2009’’; and 

15 (3) in subsection (b)(3), by striking ‘‘August 

16 27, 2009’’ and inserting ‘‘May 31, 2010’’. 

17 (b) FINANCING PROVISIONS.—Section 4004 of such 

18 Act is amended by adding at the end the following: 

19 ‘‘(e) TRANSFER OF FUNDS.—Notwithstanding any 

20 other provision of law, the Secretary of the Treasury shall 

21 transfer from the general fund of the Treasury (from 

22 funds not otherwise appropriated)— 

23 ‘‘(1) to the extended unemployment compensa24 tion account (as established by section 905 of the 


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1 Social Security Act) such sums as the Secretary of 

2 Labor estimates to be necessary to make payments 

3 to States under this title by reason of the amend4 ments made by section 2001(a) of the Assistance for 

5 Unemployed Workers and Struggling Families Act; 

6 and 

7 ‘‘(2) to the employment security administration 

8 account (as established by section 901 of the Social 

9 Security Act) such sums as the Secretary of Labor 

10 estimates to be necessary for purposes of assisting 

11 States in meeting administrative costs by reason of 

12 the amendments referred to in paragraph (1). 

13 There are appropriated from the general fund of the 

14 Treasury, without fiscal year limitation, the sums referred 

15 to in the preceding sentence and such sums shall not be 

16 required to be repaid.’’. 

17 SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION 

18 BENEFITS. 

19 (a) FEDERAL-STATE AGREEMENTS.—Any State 

20 which desires to do so may enter into and participate in 

21 an agreement under this section with the Secretary of 

22 Labor (hereinafter in this section referred to as the ‘‘Sec23 retary’’). Any State which is a party to an agreement 

24 under this section may, upon providing 30 days’ written 

25 notice to the Secretary, terminate such agreement. 


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1 (b) PROVISIONS OF AGREEMENT.— 

2 (1) ADDITIONAL COMPENSATION.—Any agree3 ment under this section shall provide that the State 

4 agency of the State will make payments of regular 

5 compensation to individuals in amounts and to the 

6 extent that they would be determined if the State 

7 law of the State were applied, with respect to any 

8 week for which the individual is (disregarding this 

9 section) otherwise entitled under the State law to re10 ceive regular compensation, as if such State law had 

11 been modified in a manner such that the amount of 

12 regular compensation (including dependents’ allow13 ances) payable for any week shall be equal to the 

14 amount determined under the State law (before the 

15 application of this paragraph) plus an additional 

16 $25. 

17 (2) ALLOWABLE METHODS OF PAYMENT.—Any 

18 additional compensation provided for in accordance 

19 with paragraph (1) shall be payable either— 

20 (A) as an amount which is paid at the 

21 same time and in the same manner as any reg22 ular compensation otherwise payable for the 

23 week involved; or 

24 (B) at the option of the State, by pay25 ments which are made separately from, but on 


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1 the same weekly basis as, any regular com2 pensation otherwise payable. 

3 (c) NONREDUCTION RULE.—An agreement under 

4 this section shall not apply (or shall cease to apply) with 

5 respect to a State upon a determination by the Secretary 

6 that the method governing the computation of regular 

7 compensation under the State law of that State has been 

8 modified in a manner such that— 

9 (1) the average weekly benefit amount of reg10 ular compensation which will be payable during the 

11 period of the agreement (determined disregarding 

12 any additional amounts attributable to the modifica13 tion described in subsection (b)(1)) will be less than 

14 (2) the average weekly benefit amount of reg15 ular compensation which would otherwise have been 

16 payable during such period under the State law, as 

17 in effect on December 31, 2008. 

18 (d) PAYMENTS TO STATES.— 

19 (1) IN GENERAL.— 

20 (A) FULL REIMBURSEMENT.—There shall 

21 be paid to each State which has entered into an 

22 agreement under this section an amount equal 

23 to 100 percent of— 

24 (i) the total amount of additional 

25 compensation (as described in subsection 


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AMDT. NO. 98 

1 (b)(1)) paid to individuals by the State 

2 pursuant to such agreement; and 

3 (ii) any additional administrative ex4 penses incurred by the State by reason of 

5 such agreement (as determined by the Sec6 retary). 

7 (B) TERMS OF PAYMENTS.—Sums payable 

8 to any State by reason of such State’s having 

9 an agreement under this section shall be pay10 able, either in advance or by way of reimburse11 ment (as determined by the Secretary), in such 

12 amounts as the Secretary estimates the State 

13 will be entitled to receive under this section for 

14 each calendar month, reduced or increased, as 

15 the case may be, by any amount by which the 

16 Secretary finds that his estimates for any prior 

17 calendar month were greater or less than the 

18 amounts which should have been paid to the 

19 State. Such estimates may be made on the 

20 basis of such statistical, sampling, or other 

21 method as may be agreed upon by the Secretary 

22 and the State agency of the State involved. 

23 (2) CERTIFICATIONS.—The Secretary shall 

24 from time to time certify to the Secretary of the 


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1 Treasury for payment to each State the sums pay2 able to such State under this section. 

3 (3) APPROPRIATION.—There are appropriated 

4 from the general fund of the Treasury, without fiscal 

5 year limitation, such sums as may be necessary for 

6 purposes of this subsection. 

7 (e) APPLICABILITY.— 

8 (1) IN GENERAL.—An agreement entered into 

9 under this section shall apply to weeks of unemploy10 ment— 

11 (A) beginning after the date on which such 

12 agreement is entered into; and 

13 (B) ending before January 1, 2010. 

14 (2) TRANSITION RULE FOR INDIVIDUALS RE15 MAINING ENTITLED TO REGULAR COMPENSATION AS

16 OF JANUARY 1, 2010.—In the case of any individual 

17 who, as of the date specified in paragraph (1)(B), 

18 has not yet exhausted all rights to regular com19 pensation under the State law of a State with re20 spect to a benefit year that began before such date, 

21 additional compensation (as described in subsection 

22 (b)(1)) shall continue to be payable to such indi23 vidual for any week beginning on or after such date 

24 for which the individual is otherwise eligible for reg25 ular compensation with respect to such benefit year. 


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1 (3) TERMINATION.—Notwithstanding any other 

2 provision of this subsection, no additional compensa3 tion (as described in subsection (b)(1)) shall be pay4 able for any week beginning after June 30, 2010. 

5 (f) FRAUD AND OVERPAYMENTS.—The provisions of 

6 section 4005 of the Supplemental Appropriations Act, 

7 2008 (Public Law 110–252; 122 Stat. 2356) shall apply 

8 with respect to additional compensation (as described in 

9 subsection (b)(1)) to the same extent and in the same 

10 manner as in the case of emergency unemployment com11 pensation. 

12 (g) APPLICATION TO OTHER UNEMPLOYMENT BENE13 FITS.— 

14 (1) IN GENERAL.—Each agreement under this 

15 section shall include provisions to provide that the 

16 purposes of the preceding provisions of this section 

17 shall be applied with respect to unemployment bene18 fits described in subsection (i)(3) to the same extent 

19 and in the same manner as if those benefits were 

20 regular compensation. 

21 (2) ELIGIBILITY AND TERMINATION RULES.— 

22 Additional compensation (as described in subsection 

23 (b)(1))— 

24 (A) shall not be payable, pursuant to this 

25 subsection, with respect to any unemployment 


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AMDT. NO. 98 

1 benefits described in subsection (i)(3) for any 

2 week beginning on or after the date specified in 

3 subsection (e)(1)(B), except in the case of an 

4 individual who was eligible to receive additional 

5 compensation (as so described) in connection 

6 with any regular compensation or any unem7 ployment benefits described in subsection (i)(3) 

8 for any period of unemployment ending before 

9 such date; and 

10 (B) shall in no event be payable for any 

11 week beginning after the date specified in sub12 section (e)(3). 

13 (h) DISREGARD OF ADDITIONAL COMPENSATION FOR

14 PURPOSES OF MEDICAID AND SCHIP.—A State that en15 ters into an agreement under this section shall disregard 

16 the monthly equivalent of $25 per week for any individual 

17 who receives additional compensation under subsection 

18 (b)(1) in considering the amount of income of the indi19 vidual for any purposes under the Medicaid program 

20 under title XIX of the Social Security Act and the State 

21 Children’s Health Insurance Program under title XXI of 

22 such Act. 

23 (i) DEFINITIONS.—For purposes of this section— 

24 (1) the terms ‘‘compensation’’, ‘‘regular com25 pensation’’, ‘‘benefit year’’, ‘‘State’’, ‘‘State agency’’, 


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1 ‘‘State law’’, and ‘‘week’’ have the respective mean2 ings given such terms under section 205 of the Fed3 eral-State Extended Unemployment Compensation 

4 Act of 1970 (26 U.S.C. 3304 note); 

5 (2) the term ‘‘emergency unemployment com6 pensation’’ means emergency unemployment com7 pensation under title IV of the Supplemental Appro8 priations Act, 2008 (Public Law 110–252; 122 Stat. 

9 2353); and 

10 (3) any reference to unemployment benefits de11 scribed in this paragraph shall be considered to refer 

12 to— 

13 (A) extended compensation (as defined by 

14 section 205 of the Federal-State Extended Un15 employment Compensation Act of 1970); and 

16 (B) unemployment compensation (as de17 fined by section 85(b) of the Internal Revenue 

18 Code of 1986) provided under any program ad19 ministered by a State under an agreement with 

20 the Secretary. 

21 SEC. 2003. UNEMPLOYMENT COMPENSATION MODERNIZA22 TION. 

23 (a) IN GENERAL.—Section 903 of the Social Security 

24 Act (42 U.S.C. 1103) is amended by adding at the end 

25 the following: 


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1 ‘‘Special Transfers for Modernization 

2 ‘‘(f)(1)(A) In addition to any other amounts, the Sec3 retary of Labor shall provide for the making of unemploy4 ment compensation modernization incentive payments 

5 (hereinafter ‘incentive payments’) to the accounts of the 

6 States in the Unemployment Trust Fund, by transfer from 

7 amounts reserved for that purpose in the Federal unem8 ployment account, in accordance with succeeding provi9 sions of this subsection. 

10 ‘‘(B) The maximum incentive payment allowable 

11 under this subsection with respect to any State shall, as 

12 determined by the Secretary of Labor, be equal to the 

13 amount obtained by multiplying $7,000,000,000 by the 

14 same ratio as would apply under subsection (a)(2)(B) for 

15 purposes of determining such State’s share of any excess 

16 amount (as described in subsection (a)(1)) that would 

17 have been subject to transfer to State accounts, as of Oc18 tober 1, 2008, under the provisions of subsection (a). 

19 ‘‘(C) Of the maximum incentive payment determined 

20 under subparagraph (B) with respect to a State— 

21 ‘‘(i) one-third shall be transferred to the ac22 count of such State upon a certification under para23 graph (4)(B) that the State law of such State meets 

24 the requirements of paragraph (2); and 


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1 ‘‘(ii) the remainder shall be transferred to the 

2 account of such State upon a certification under 

3 paragraph (4)(B) that the State law of such State 

4 meets the requirements of paragraph (3). 

5 ‘‘(2) The State law of a State meets the requirements 

6 of this paragraph if such State law— 

7 ‘‘(A) uses a base period that includes the most 

8 recently completed calendar quarter before the start 

9 of the benefit year for purposes of determining eligi10 bility for unemployment compensation; or 

11 ‘‘(B) provides that, in the case of an individual 

12 who would not otherwise be eligible for unemploy13 ment compensation under the State law because of 

14 the use of a base period that does not include the 

15 most recently completed calendar quarter before the 

16 start of the benefit year, eligibility shall be deter17 mined using a base period that includes such cal18 endar quarter. 

19 ‘‘(3) The State law of a State meets the requirements 

20 of this paragraph if such State law includes provisions to 

21 carry out at least 2 of the following subparagraphs: 

22 ‘‘(A) An individual shall not be denied regular 

23 unemployment compensation under any State law 

24 provisions relating to availability for work, active 

25 search for work, or refusal to accept work, solely beVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00581 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 cause such individual is seeking only part-time (and 

2 not full-time) work, except that the State law provi3 sions carrying out this subparagraph may exclude an 

4 individual if a majority of the weeks of work in such 

5 individual’s base period do not include part-time 

6 work. 

7 ‘‘(B) An individual shall not be disqualified 

8 from regular unemployment compensation for sepa9 rating from employment if that separation is for any 

10 compelling family reason. For purposes of this sub11 paragraph, the term ‘compelling family reason’ 

12 means the following: 

13 ‘‘(i) Domestic violence, verified by such 

14 reasonable and confidential documentation as 

15 the State law may require, which causes the in16 dividual reasonably to believe that such individ17 ual’s continued employment would jeopardize 

18 the safety of the individual or of any member 

19 of the individual’s immediate family (as defined 

20 by the Secretary of Labor). 

21 ‘‘(ii) The illness or disability of a member 

22 of the individual’s immediate family (as defined 

23 by the Secretary of Labor). 

24 ‘‘(iii) The need for the individual to accom25 pany such individual’s spouse— 


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1 ‘‘(I) to a place from which it is im2 practical for such individual to commute; 

3 and 

4 ‘‘(II) due to a change in location of 

5 the spouse’s employment. 

6 ‘‘(C) Weekly unemployment compensation is 

7 payable under this subparagraph to any individual 

8 who is unemployed (as determined under the State 

9 unemployment compensation law), has exhausted all 

10 rights to regular unemployment compensation under 

11 the State law, and is enrolled and making satisfac12 tory progress in a State-approved training program 

13 or in a job training program authorized under the 

14 Workforce Investment Act of 1998. Such programs 

15 shall prepare individuals who have been separated 

16 from a declining occupation, or who have been invol17 untarily and indefinitely separated from employment 

18 as a result of a permanent reduction of operations 

19 at the individual’s place of employment, for entry 

20 into a high-demand occupation. The amount of un21 employment compensation payable under this sub22 paragraph to an individual for a week of unemploy23 ment shall be equal to the individual’s average week24 ly benefit amount (including dependents’ allowances) 

25 for the most recent benefit year, and the total 


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1 amount of unemployment compensation payable 

2 under this subparagraph to any individual shall be 

3 equal to at least 26 times the individual’s average 

4 weekly benefit amount (including dependents’ allow5 ances) for the most recent benefit year. 

6 ‘‘(D) Dependents’ allowances are provided, in 

7 the case of any individual who is entitled to receive 

8 regular unemployment compensation and who has 

9 any dependents (as defined by State law), in an 

10 amount equal to at least $15 per dependent per 

11 week, subject to any aggregate limitation on such al12 lowances which the State law may establish (but 

13 which aggregate limitation on the total allowance for 

14 dependents paid to an individual may not be less 

15 than $50 for each week of unemployment or 50 per16 cent of the individual’s weekly benefit amount for 

17 the benefit year, whichever is less). 

18 ‘‘(4)(A) Any State seeking an incentive payment 

19 under this subsection shall submit an application therefor 

20 at such time, in such manner, and complete with such in21 formation as the Secretary of Labor may within 60 days 

22 after the date of the enactment of this subsection prescribe 

23 (whether by regulation or otherwise), including informa24 tion relating to compliance with the requirements of para25 graph (2) or (3), as well as how the State intends to use 


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1 the incentive payment to improve or strengthen the State’s 

2 unemployment compensation program. The Secretary of 

3 Labor shall, within 30 days after receiving a complete ap4 plication, notify the State agency of the State of the Sec5 retary’s findings with respect to the requirements of para6 graph (2) or (3) (or both). 

7 ‘‘(B)(i) If the Secretary of Labor finds that the State 

8 law provisions (disregarding any State law provisions 

9 which are not then currently in effect as permanent law 

10 or which are subject to discontinuation) meet the require11 ments of paragraph (2) or (3), as the case may be, the 

12 Secretary of Labor shall thereupon make a certification 

13 to that effect to the Secretary of the Treasury, together 

14 with a certification as to the amount of the incentive pay15 ment to be transferred to the State account pursuant to 

16 that finding. The Secretary of the Treasury shall make 

17 the appropriate transfer within 7 days after receiving such 

18 certification. 

19 ‘‘(ii) For purposes of clause (i), State law provisions 

20 which are to take effect within 12 months after the date 

21 of their certification under this subparagraph shall be con22 sidered to be in effect as of the date of such certification. 

23 ‘‘(C)(i) No certification of compliance with the re24 quirements of paragraph (2) or (3) may be made with re25 spect to any State whose State law is not otherwise eligible 


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AMDT. NO. 98 

1 for certification under section 303 or approvable under 

2 section 3304 of the Federal Unemployment Tax Act. 

3 ‘‘(ii) No certification of compliance with the require4 ments of paragraph (3) may be made with respect to any 

5 State whose State law is not in compliance with the re6 quirements of paragraph (2). 

7 ‘‘(iii) No application under subparagraph (A) may be 

8 considered if submitted before the date of the enactment 

9 of this subsection or after the latest date necessary (as 

10 specified by the Secretary of Labor) to ensure that all in11 centive payments under this subsection are made before 

12 October 1, 2010. In the case of a State in which the first 

13 day of the first regularly scheduled session of the State 

14 legislature beginning after the date of enactment of this 

15 subsection begins after December 31, 2010, the preceding 

16 sentence shall be applied by substituting ‘October 1, 2011’ 

17 for ‘October 1, 2010’ . 

18 ‘‘(5)(A) Except as provided in subparagraph (B), any 

19 amount transferred to the account of a State under this 

20 subsection may be used by such State only in the payment 

21 of cash benefits to individuals with respect to their unem22 ployment (including for dependents’ allowances and for 

23 unemployment compensation under paragraph (3)(C)), ex24 clusive of expenses of administration. 


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1 ‘‘(B) A State may, subject to the same conditions as 

2 set forth in subsection (c)(2) (excluding subparagraph (B) 

3 thereof, and deeming the reference to ‘subsections (a) and 

4 (b)’ in subparagraph (D) thereof to include this sub5 section), use any amount transferred to the account of 

6 such State under this subsection for the administration 

7 of its unemployment compensation law and public employ8 ment offices. 

9 ‘‘(6) Out of any money in the Federal unemployment 

10 account not otherwise appropriated, the Secretary of the 

11 Treasury shall reserve $7,000,000,000 for incentive pay12 ments under this subsection. Any amount so reserved shall 

13 not be taken into account for purposes of any determina14 tion under section 902, 910, or 1203 of the amount in 

15 the Federal unemployment account as of any given time. 

16 Any amount so reserved for which the Secretary of the 

17 Treasury has not received a certification under paragraph 

18 (4)(B) by the deadline described in paragraph (4)(C)(iii) 

19 shall, upon the close of fiscal year 2011, become unre20 stricted as to use as part of the Federal unemployment 

21 account. 

22 ‘‘(7) For purposes of this subsection, the terms ‘ben23 efit year’, ‘base period’, and ‘week’ have the respective 

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1 eral-State Extended Unemployment Compensation Act of 

2 1970 (26 U.S.C. 3304 note). 

3 ‘‘Special Transfer in Fiscal Year 2009 for Administration 

4 ‘‘(g)(1) In addition to any other amounts, the Sec5 retary of the Treasury shall transfer from the employment 

6 security administration account to the account of each 

7 State in the Unemployment Trust Fund, within 30 days 

8 after the date of the enactment of this subsection, the 

9 amount determined with respect to such State under para10 graph (2). 

11 ‘‘(2) The amount to be transferred under this sub12 section to a State account shall (as determined by the Sec13 retary of Labor and certified by such Secretary to the Sec14 retary of the Treasury) be equal to the amount obtained 

15 by multiplying $500,000,000 by the same ratio as deter16 mined under subsection (f)(1)(B) with respect to such 

17 State. 

18 ‘‘(3) Any amount transferred to the account of a 

19 State as a result of the enactment of this subsection may 

20 be used by the State agency of such State only in the pay21 ment of expenses incurred by it for— 

22 ‘‘(A) the administration of the provisions of its 

23 State law carrying out the purposes of subsection 

24 (f)(2) or any subparagraph of subsection (f)(3); 


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1 ‘‘(B) improved outreach to individuals who 

2 might be eligible for regular unemployment com3 pensation by virtue of any provisions of the State 

4 law which are described in subparagraph (A); 

5 ‘‘(C) the improvement of unemployment benefit 

6 and unemployment tax operations, including re7 sponding to increased demand for unemployment 

8 compensation; and 

9 ‘‘(D) staff-assisted reemployment services for 

10 unemployment compensation claimants.’’. 

11 (b) REGULATIONS.—The Secretary of Labor may 

12 prescribe any regulations, operating instructions, or other 

13 guidance necessary to carry out the amendment made by 

14 subsection (a). 

15 SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH AD16 VANCES. 

17 Section 1202(b) of the Social Security Act (42 U.S.C. 

18 1322(b)) is amended by adding at the end the following 

19 new paragraph: 

20 ‘‘(10)(A) With respect to the period beginning on the 

21 date of enactment of this paragraph and ending on De22 cember 31, 2010— 

23 ‘‘(i) any interest payment otherwise due from a 

24 State under this subsection during such period shall 

25 be deemed to have been made by the State; and 


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1 ‘‘(ii) no interest shall accrue on any advance or 

2 advances made under section 1201 to a State during 

3 such period. 

4 ‘‘(B) The provisions of subparagraph (A) shall have 

5 no effect on the requirement for interest payments under 

6 this subsection after the period described in such subpara7 graph or on the accrual of interest under this subsection 

8 after such period.’’. 

9 Subtitle B—Assistance for 

10 Vulnerable Individuals 

11 SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM. 

12 (a) TEMPORARY FUND.— 

13 (1) IN GENERAL.—Section 403 of the Social 

14 Security Act (42 U.S.C. 603) is amended by adding 

15 at the end the following: 

16 ‘‘(c) EMERGENCY FUND.— 

17 ‘‘(1) ESTABLISHMENT.—There is established in 

18 the Treasury of the United States a fund which 

19 shall be known as the ‘Emergency Contingency 

20 Fund for State Temporary Assistance for Needy 

21 Families Programs’ (in this subsection referred to as 

22 the ‘Emergency Fund’). 

23 ‘‘(2) DEPOSITS INTO FUND.— 

24 ‘‘(A) IN GENERAL.—Out of any money in 

25 the Treasury of the United States not otherwise 


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1 appropriated, there are appropriated for fiscal 

2 year 2009, $3,000,000,000 for payment to the 

3 Emergency Fund. 

4 ‘‘(B) AVAILABILITY AND USE OF FUNDS.— 

5 The amounts appropriated to the Emergency 

6 Fund under subparagraph (A) shall remain 

7 available through fiscal year 2010 and shall be 

8 used to make grants to States in each of fiscal 

9 years 2009 and 2010 in accordance with the re10 quirements of paragraph (3). 

11 ‘‘(C) LIMITATION.—In no case may the 

12 Secretary make a grant from the Emergency 

13 Fund for a fiscal year after fiscal year 2010. 

14 ‘‘(3) GRANTS.— 

15 ‘‘(A) GRANT RELATED TO CASELOAD IN16 CREASES.— 

17 ‘‘(i) IN GENERAL.—For each calendar 

18 quarter in fiscal year 2009 or 2010, the 

19 Secretary shall make a grant from the 

20 Emergency Fund to each State that— 

21 ‘‘(I) requests a grant under this 

22 subparagraph for the quarter; and 

23 ‘‘(II) meets the requirement of 

24 clause (ii) for the quarter. 


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1 ‘‘(ii) CASELOAD INCREASE REQUIRE2 MENT.—A State meets the requirement of 

3 this clause for a quarter if the average 

4 monthly assistance caseload of the State 

5 for the quarter exceeds the average month6 ly assistance caseload of the State for the 

7 corresponding quarter in the emergency 

8 fund base year of the State. 

9 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

10 paragraph (5), the amount of the grant to 

11 be made to a State under this subpara12 graph for a quarter shall be 80 percent of 

13 the amount (if any) by which the total ex14 penditures of the State for basic assistance 

15 (as defined by the Secretary) in the quar16 ter, whether under the State program 

17 funded under this part or as qualified 

18 State expenditures, exceeds the total ex19 penditures of the State for such assistance 

20 for the corresponding quarter in the emer21 gency fund base year of the State. 

22 ‘‘(B) GRANT RELATED TO INCREASED EX23 PENDITURES FOR NON-RECURRENT SHORT

24 TERM BENEFITS.— 


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1 ‘‘(i) IN GENERAL.—For each calendar 

2 quarter in fiscal year 2009 or 2010, the 

3 Secretary shall make a grant from the 

4 Emergency Fund to each State that— 

5 ‘‘(I) requests a grant under this 

6 subparagraph for the quarter; and 

7 ‘‘(II) meets the requirement of 

8 clause (ii) for the quarter. 

9 ‘‘(ii) NON-RECURRENT SHORT TERM

10 EXPENDITURE REQUIREMENT.—A State 

11 meets the requirement of this clause for a 

12 quarter if the total expenditures of the 

13 State for non-recurrent short term benefits 

14 in the quarter, whether under the State 

15 program funded under this part or as 

16 qualified State expenditures, exceeds the 

17 total such expenditures of the State for 

18 non-recurrent short term benefits in the 

19 corresponding quarter in the emergency 

20 fund base year of the State. 

21 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

22 paragraph (5), the amount of the grant to 

23 be made to a State under this subpara24 graph for a quarter shall be an amount 


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1 equal to 80 percent of the excess described 

2 in clause (ii). 

3 ‘‘(C) GRANT RELATED TO INCREASED EX4 PENDITURES FOR SUBSIDIZED EMPLOYMENT.— 

5 ‘‘(i) IN GENERAL.—For each calendar 

6 quarter in fiscal year 2009 or 2010, the 

7 Secretary shall make a grant from the 

8 Emergency Fund to each State that— 

9 ‘‘(I) requests a grant under this 

10 subparagraph for the quarter; and 

11 ‘‘(II) meets the requirement of 

12 clause (ii) for the quarter. 

13 ‘‘(ii) SUBSIDIZED EMPLOYMENT EX14 PENDITURE REQUIREMENT.—A State 

15 meets the requirement of this clause for a 

16 quarter if the total expenditures of the 

17 State for subsidized employment in the 

18 quarter, whether under the State program 

19 funded under this part or as qualified 

20 State expenditures, exceeds the total of 

21 such expenditures of the State in the cor22 responding quarter in the emergency fund 

23 base year of the State. 

24 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

25 paragraph (5), the amount of the grant to 


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1 be made to a State under this subpara2 graph for a quarter shall be an amount 

3 equal to 80 percent of the excess described 

4 in clause (ii). 

5 ‘‘(4) AUTHORITY TO MAKE NECESSARY ADJUST6 MENTS TO DATA AND COLLECT NEEDED DATA.—In 

7 determining the size of the caseload of a State and 

8 the expenditures of a State for basic assistance, non9 recurrent short-term benefits, and subsidized em10 ployment, during any period for which the State re11 quests funds under this subsection, and during the 

12 emergency fund base year of the State, the Sec13 retary may make appropriate adjustments to the 

14 data to ensure that the data reflect expenditures 

15 under the State program funded under this part and 

16 qualified State expenditures. The Secretary may de17 velop a mechanism for collecting expenditure data, 

18 including procedures which allow States to make 

19 reasonable estimates, and may set deadlines for 

20 making revisions to the data. 

21 ‘‘(5) LIMITATION.—The total amount payable 

22 to a single State under subsection (b) and this sub23 section for a fiscal year shall not exceed 25 percent 

24 of the State family assistance grant. 


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1 ‘‘(6) LIMITATIONS ON USE OF FUNDS.—A State 

2 to which an amount is paid under this subsection 

3 may use the amount only as authorized by section 

4 404. 

5 ‘‘(7) TIMING OF IMPLEMENTATION.—The Sec6 retary shall implement this subsection as quickly as 

7 reasonably possible, pursuant to appropriate guid8 ance to States. 

9 ‘‘(8) DEFINITIONS.—In this subsection: 

10 ‘‘(A) AVERAGE MONTHLY ASSISTANCE

11 CASELOAD DEFINED.—The term ‘average 

12 monthly assistance caseload’ means, with re13 spect to a State and a quarter, the number of 

14 families receiving assistance during the quarter 

15 under the State program funded under this 

16 part or as qualified State expenditures, subject 

17 to adjustment under paragraph (4). 

18 ‘‘(B) EMERGENCY FUND BASE YEAR.— 

19 ‘‘(i) IN GENERAL.—The term ‘emer20 gency fund base year’ means, with respect 

21 to a State and a category described in 

22 clause (ii), whichever of fiscal year 2007 or 

23 2008 is the fiscal year in which the 

24 amount described by the category with re25 spect to the State is the lesser. 


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1 ‘‘(ii) CATEGORIES DESCRIBED.—The 

2 categories described in this clause are the 

3 following: 

4 ‘‘(I) The average monthly assist5 ance caseload of the State. 

6 ‘‘(II) The total expenditures of 

7 the State for non-recurrent short term 

8 benefits, whether under the State pro9 gram funded under this part or as 

10 qualified State expenditures. 

11 ‘‘(III) The total expenditures of 

12 the State for subsidized employment, 

13 whether under the State program 

14 funded under this part or as qualified 

15 State expenditures. 

16 ‘‘(C) QUALIFIED STATE EXPENDITURES.— 

17 The term ‘qualified State expenditures’ has the 

18 meaning given the term in section 409(a)(7).’’. 

19 (2) REPEAL.—Effective October 1, 2010, sub20 section (c) of section 403 of the Social Security Act 

21 (42 U.S.C. 603) (as added by paragraph (1)) is re22 pealed. 

23 (b) TEMPORARY MODIFICATION OF CASELOAD RE24 DUCTION CREDIT.—Section 407(b)(3)(A)(i) of such Act 

25 (42 U.S.C. 607(b)(3)(A)(i)) is amended by inserting ‘‘(or 


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1 if the immediately preceding fiscal year is fiscal year 2008, 

2 2009, or 2010, then, at State option, during the emer3 gency fund base year of the State with respect to the aver4 age monthly assistance caseload of the State (within the 

5 meaning of section 403(c)(8)(B), except that, if a State 

6 elects such option for fiscal year 2008, the emergency fund 

7 base year of the State with respect to such caseload shall 

8 be fiscal year 2007))’’ before ‘‘under the State’’. 

9 (c) DISREGARD FROM LIMITATION ON TOTAL PAY10 MENTS TO TERRITORIES.—Section 1108(a)(2) of the So11 cial Security Act (42 U.S.C. 1308(a)(2)) is amended by 

12 inserting ‘‘403(c)(3),’’ after ‘‘403(a)(5),’’. 

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section shall take effect on the date of the enactment 

15 of this Act. 

16 SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS. 

17 (a) EXTENSION THROUGH FISCAL YEAR 2010.—Sec18 tion 7101(a) of the Deficit Reduction Act of 2005 (Public 

19 Law 109–171; 120 Stat. 135), as amended by section 

20 301(a) of the Medicare Improvements for Patients and 

21 Providers Act of 2008 (Public Law 110–275), is amended 

22 by striking ‘‘fiscal year 2009’’ and inserting ‘‘fiscal year 

23 2010’’. 


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1 (b) CONFORMING AMENDMENT.—Section 

2 403(a)(3)(H)(ii) of the Social Security Act (42 U.S.C. 

3 603(a)(3)(H)(ii)) is amended to read as follows: 

4 ‘‘(ii) subparagraph (G) shall be ap5 plied as if ‘fiscal year 2010’ were sub6 stituted for ‘fiscal year 2001’; and’’. 

7 SEC. 2103. CLARIFICATION OF AUTHORITY OF STATES TO 

8 USE TANF FUNDS CARRIED OVER FROM 

9 PRIOR YEARS TO PROVIDE TANF BENEFITS 

10 AND SERVICES. 

11 Section 404(e) of the Social Security Act (42 U.S.C. 

12 604(e)) is amended to read as follows: 

13 ‘‘(e) AUTHORITY TO CARRY OVER CERTAIN

14 AMOUNTS FOR BENEFITS OR SERVICES OR FOR FUTURE

15 CONTINGENCIES.—A State or tribe may use a grant made 

16 to the State or tribe under this part for any fiscal year 

17 to provide, without fiscal year limitation, any benefit or 

18 service that may be provided under the State or tribal pro19 gram funded under this part.’’. 

20 SEC. 2104. TEMPORARY REINSTATEMENT OF AUTHORITY 

21 TO PROVIDE FEDERAL MATCHING PAYMENTS 

22 FOR STATE SPENDING OF CHILD SUPPORT 

23 INCENTIVE PAYMENTS. 

24 During the period that begins on October 1, 2008, 

25 and ends on December 31, 2010, section 455(a)(1) of the 


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1 Social Security Act (42 U.S.C. 655(a)(1)) shall be applied 

2 without regard to the amendment made by section 

3 7309(a) of the Deficit Reduction Act of 2005 (Public Law 

4 109–171, 120 Stat. 147). 

5 TITLE III—HEALTH INSURANCE 

6 ASSISTANCE 

7 SEC. 3000. TABLE OF CONTENTS OF TITLE. 

8 The table of contents for this title is as follows: 

TITLE III—HEALTH INSURANCE ASSISTANCE 

Sec. 3000. Table of contents of title. 

Subtitle A—Premium Subsidies for COBRA Continuation Coverage for 

Unemployed Workers 

Sec. 3001. Premium assistance for COBRA benefits. 

Subtitle B—Transitional Medical Assistance (TMA) 

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

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

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

Subtitle D—Other Provisions 

Sec. 3301. Premiums and cost sharing protections under Medicaid, eligibility 

determinations under Medicaid and CHIP, and protection of 

certain Indian property from Medicaid estate recovery. 

Sec. 3302. Rules applicable under Medicaid and CHIP to managed care entities 

with respect to Indian enrollees and Indian health care providers and Indian managed care entities. 

Sec. 3303. Consultation on Medicaid, CHIP, and other health care programs 

funded under the Social Security Act involving Indian Health 

Programs and Urban Indian Organizations. 

Sec. 3304. Application of prompt pay requirements to nursing facilities. 

Sec. 3305. Period of application; sunset. 


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1 Subtitle A—Premium Subsidies for 

2 COBRA Continuation Coverage 

3 for Unemployed Workers 

4 SEC. 3001. PREMIUM ASSISTANCE FOR COBRA BENEFITS. 

5 (a) TABLE OF CONTENTS OF SUBTITLE.—The table 

6 of contents of this subtitle is as follows: 

Sec. 3001. Premium assistance for COBRA benefits. 

7 (b) PREMIUM ASSISTANCE FOR COBRA CONTINU8 ATION COVERAGE FOR UNEMPLOYED WORKERS AND

9 THEIR FAMILIES.— 

10 (1) PROVISION OF PREMIUM ASSISTANCE.— 

11 (A) REDUCTION OF PREMIUMS PAY12 ABLE.—In the case of any premium for a 

13 month of coverage beginning after the date of 

14 the enactment of the Act for COBRA continu15 ation coverage with respect to any assistance el16 igible individual, such individual shall be treated 

17 for purposes of any COBRA continuation provi18 sion as having paid the amount of such pre19 mium if such individual pays 35 percent of the 

20 amount of such premium (as determined with21 out regard to this subsection). 

22 (B) PLAN ENROLLMENT OPTION.— 

23 (i) IN GENERAL.—Notwithstanding 

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1 sistance eligible individual may, not later 

2 than 90 days after the date of notice of the 

3 plan enrollment option described in this 

4 subparagraph, elect to enroll in coverage 

5 under a plan offered by the employer in6 volved, or the employee organization in7 volved (including, for this purpose, a joint 

8 board of trustees of a multiemployer trust 

9 affiliated with one or more multiemployer 

10 plans), that is different than coverage 

11 under the plan in which such individual 

12 was enrolled at the time the qualifying 

13 event occurred, and such coverage shall be 

14 treated as COBRA continuation coverage 

15 for purposes of the applicable COBRA con16 tinuation coverage provision. 

17 (ii) REQUIREMENTS.—An assistance 

18 eligible individual may elect to enroll in 

19 different coverage as described in clause (i) 

20 only if— 

21 (I) the employer involved has 

22 made a determination that such em23 ployer will permit assistance eligible 

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1 erage as provided for this subpara2 graph; 

3 (II) the premium for such dif4 ferent coverage does not exceed the 

5 premium for coverage in which the in6 dividual was enrolled at the time the 

7 qualifying event occurred; 

8 (III) the different coverage in 

9 which the individual elects to enroll is 

10 coverage that is also offered to the ac11 tive employees of the employer at the 

12 time at which such election is made; 

13 and 

14 (IV) the different coverage is 

15 not— 

16 (aa) coverage that provides 

17 only dental, vision, counseling, or 

18 referral services (or a combina19 tion of such services); 

20 (bb) a health flexible spend21 ing account or health reimburse22 ment arrangement; or 

23 (cc) coverage that provides 

24 coverage for services or treat25 ments furnished in an on-site 


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1 medical facility maintained by 

2 the employer and that consists 

3 primarily of first-aid services, 

4 prevention and wellness care, or 

5 similar care (or a combination of 

6 such care). 

7 (C) PREMIUM REIMBURSEMENT.—For pro8 visions providing the balance of such premium, 

9 see section 6432 of the Internal Revenue Code 

10 of 1986, as added by paragraph (12). 

11 (2) LIMITATION OF PERIOD OF PREMIUM AS12 SISTANCE.— 

13 (A) IN GENERAL.—Paragraph (1)(A) shall 

14 not apply with respect to any assistance eligible 

15 individual for months of coverage beginning on 

16 or after the earlier of— 

17 (i) the first date that such individual 

18 is eligible for coverage under any other 

19 group health plan (other than coverage 

20 consisting of only dental, vision, coun21 seling, or referral services (or a combina22 tion thereof), coverage under a health re23 imbursement arrangement or a health 

24 flexible spending arrangement, or coverage 

25 of treatment that is furnished in an on-site 


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1 medical facility maintained by the em2 ployer and that consists primarily of first3 aid services, prevention and wellness care, 

4 or similar care (or a combination thereof)) 

5 or is eligible for benefits under title XVIII 

6 of the Social Security Act; or 

7 (ii) the earliest of— 

8 (I) the date which is 9 months 

9 after the first day of first month that 

10 paragraph (1)(A) applies with respect 

11 to such individual, 

12 (II) the date following the expira13 tion of the maximum period of con14 tinuation coverage required under the 

15 applicable COBRA continuation cov16 erage provision, or 

17 (III) the date following the expi18 ration of the period of continuation 

19 coverage allowed under paragraph 

20 (4)(B)(ii). 

21 (B) TIMING OF ELIGIBILITY FOR ADDI22 TIONAL COVERAGE.—For purposes of subpara23 graph (A)(i), an individual shall not be treated 

24 as eligible for coverage under a group health 


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1 plan before the first date on which such indi2 vidual could be covered under such plan. 

3 (C) NOTIFICATION REQUIREMENT.—An 

4 assistance eligible individual shall notify in writ5 ing the group health plan with respect to which 

6 paragraph (1)(A) applies if such paragraph 

7 ceases to apply by reason of subparagraph 

8 (A)(i). Such notice shall be provided to the 

9 group health plan in such time and manner as 

10 may be specified by the Secretary of Labor. 

11 (3) ASSISTANCE ELIGIBLE INDIVIDUAL.—For 

12 purposes of this section, the term ‘‘assistance eligible 

13 individual’’ means any qualified beneficiary if— 

14 (A) at any time during the period that be15 gins with September 1, 2008, and ends with 

16 December 31, 2009, such qualified beneficiary 

17 is eligible for COBRA continuation coverage, 

18 (B) such qualified beneficiary elects such 

19 coverage, and 

20 (C) the qualifying event with respect to the 

21 COBRA continuation coverage consists of the 

22 involuntary termination of the covered employ23 ee’s employment and occurred during such pe24 riod. 


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1 (4) EXTENSION OF ELECTION PERIOD AND EF2 FECT ON COVERAGE.— 

3 (A) IN GENERAL.—Notwithstanding sec4 tion 605(a) of the Employee Retirement Income 

5 Security Act of 1974, section 4980B(f)(5)(A) of 

6 the Internal Revenue Code of 1986, section 

7 2205(a) of the Public Health Service Act, and 

8 section 8905a(c)(2) of title 5, United States 

9 Code, in the case of an individual who is a 

10 qualified beneficiary described in paragraph 

11 (3)(A) as of the date of the enactment of this 

12 Act and has not made the election referred to 

13 in paragraph (3)(B) as of such date, such indi14 vidual may elect the COBRA continuation cov15 erage under the COBRA continuation coverage 

16 provisions containing such sections during the 

17 60-day period commencing with the date on 

18 which the notification required under paragraph 

19 (7)(C) is provided to such individual. 

20 (B) COMMENCEMENT OF COVERAGE; NO

21 REACH-BACK.—Any COBRA continuation cov22 erage elected by a qualified beneficiary during 

23 an extended election period under subparagraph 

24 (A)— 


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1 (i) shall commence on the date of the 

2 enactment of this Act, and 

3 (ii) shall not extend beyond the period 

4 of COBRA continuation coverage that 

5 would have been required under the appli6 cable COBRA continuation coverage provi7 sion if the coverage had been elected as re8 quired under such provision. 

9 (C) PREEXISTING CONDITIONS.—With re10 spect to a qualified beneficiary who elects 

11 COBRA continuation coverage pursuant to sub12 paragraph (A), the period— 

13 (i) beginning on the date of the quali14 fying event, and 

15 (ii) ending with the day before the 

16 date of the enactment of this Act, 

17 shall be disregarded for purposes of deter18 mining the 63-day periods referred to in section 

19 701)(2) of the Employee Retirement Income 

20 Security Act of 1974, section 9801(c)(2) of the 

21 Internal Revenue Code of 1986, and section 

22 2701(c)(2) of the Public Health Service Act. 

23 (5) EXPEDITED REVIEW OF DENIALS OF PRE24 MIUM ASSISTANCE.—In any case in which an indi25 vidual requests treatment as an assistance eligible 


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1 individual and is denied such treatment by the group 

2 health plan by reason of such individual’s ineligi3 bility for COBRA continuation coverage, the Sec4 retary of Labor (or the Secretary of Health and 

5 Human services in connection with COBRA continu6 ation coverage which is provided other than pursu7 ant to part 6 of subtitle B of title I of the Employee 

8 Retirement Income Security Act of 1974), in con9 sultation with the Secretary of the Treasury, shall 

10 provide for expedited review of such denial. An indi11 vidual shall be entitled to such review upon applica12 tion to such Secretary in such form and manner as 

13 shall be provided by such Secretary. Such Secretary 

14 shall make a determination regarding such individ15 ual’s eligibility within 10 business days after receipt 

16 of such individual’s application for review under this 

17 paragraph. 

18 (6) DISREGARD OF SUBSIDIES FOR PURPOSES

19 OF FEDERAL AND STATE PROGRAMS.—Notwith20 standing any other provision of law, any premium 

21 reduction with respect to an assistance eligible indi22 vidual under this subsection shall not be considered 

23 income or resources in determining eligibility for, or 

24 the amount of assistance or benefits provided under, 

25 any other public benefit provided under Federal law 


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1 or the law of any State or political subdivision there2 of. 

3 (7) NOTICES TO INDIVIDUALS.— 

4 (A) GENERAL NOTICE.— 

5 (i) IN GENERAL.—In the case of no6 tices provided under section 606(4) of the 

7 Employee Retirement Income Security Act 

8 of 1974 (29 U.S.C. 1166(4)), section 

9 4980B(f)(6)(D) of the Internal Revenue 

10 Code of 1986, section 2206(4) of the Pub11 lic Health Service Act (42 U.S.C. 300bb12 6(4)), or section 8905a(f)(2)(A) of title 5, 

13 United States Code, with respect to indi14 viduals who, during the period described in 

15 paragraph (3)(A), become entitled to elect 

16 COBRA continuation coverage, such no17 tices shall include an additional notifica18 tion to the recipient of— 

19 (I) the availability of premium 

20 reduction with respect to such cov21 erage under this subsection; and 

22 (II) the option to enroll in dif23 ferent coverage if an employer that 

24 permits assistance eligible individuals 

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1 erage (as described in paragraph 

2 (1)(B)). 

3 (ii) ALTERNATIVE NOTICE.—In the 

4 case of COBRA continuation coverage to 

5 which the notice provision under such sec6 tions does not apply, the Secretary of 

7 Labor, in consultation with the Secretary 

8 of the Treasury and the Secretary of 

9 Health and Human Services, shall, in co10 ordination with administrators of the 

11 group health plans (or other entities) that 

12 provide or administer the COBRA continu13 ation coverage involved, provide rules re14 quiring the provision of such notice. 

15 (iii) FORM.—The requirement of the 

16 additional notification under this subpara17 graph may be met by amendment of exist18 ing notice forms or by inclusion of a sepa19 rate document with the notice otherwise 

20 required. 

21 (B) SPECIFIC REQUIREMENTS.—Each ad22 ditional notification under subparagraph (A) 

23 shall include— 


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1 (i) the forms necessary for estab2 lishing eligibility for premium reduction 

3 under this subsection, 

4 (ii) the name, address, and telephone 

5 number necessary to contact the plan ad6 ministrator and any other person main7 taining relevant information in connection 

8 with such premium reduction, 

9 (iii) a description of the extended elec10 tion period provided for in paragraph 

11 (4)(A), 

12 (iv) a description of the obligation of 

13 the qualified beneficiary under paragraph 

14 (2)(C) to notify the plan providing continu15 ation coverage of eligibility for subsequent 

16 coverage under another group health plan 

17 or eligibility for benefits under title XVIII 

18 of the Social Security Act and the penalty 

19 provided for failure to so notify the plan, 

20 (v) a description, displayed in a 

21 prominent manner, of the qualified bene22 ficiary’s right to a reduced premium and 

23 any conditions on entitlement to the re24 duced premium; and 


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1 (vi) a description of the option of the 

2 qualified beneficiary to enroll in different 

3 coverage if the employer permits such ben4 eficiary to elect to enroll in such different 

5 coverage under paragraph (1)(B). 

6 (C) NOTICE RELATING TO RETROACTIVE

7 COVERAGE.—In the case of an individual de8 scribed in paragraph (3)(A) who has elected 

9 COBRA continuation coverage as of the date of 

10 enactment of this Act or an individual described 

11 in paragraph (4)(A), the administrator of the 

12 group health plan (or other person) involved 

13 shall provide (within 60 days after the date of 

14 enactment of this Act) for the additional notifi15 cation required to be provided under subpara16 graph (A). 

17 (D) MODEL NOTICES.—Not later than 30 

18 days after the date of enactment of this Act, 

19 the Secretary of the Labor, in consultation with 

20 the Secretary of the Treasury and the Secretary 

21 of Health and Human Services, shall prescribe 

22 models for the additional notification required 

23 under this paragraph. 

24 (8) SAFEGUARDS.—The Secretary of the Treas25 ury shall provide such rules, procedures, regulations, 


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1 and other guidance as may be necessary and appro2 priate to prevent fraud and abuse under this sub3 section. 

4 (9) OUTREACH.—The Secretary of Labor, in 

5 consultation with the Secretary of the Treasury and 

6 the Secretary of Health and Human Services, shall 

7 provide outreach consisting of public education and 

8 enrollment assistance relating to premium reduction 

9 provided under this subsection. Such outreach shall 

10 target employers, group health plan administrators, 

11 public assistance programs, States, insurers, and 

12 other entities as determined appropriate by such 

13 Secretaries. Such outreach shall include an initial 

14 focus on those individuals electing continuation cov15 erage who are referred to in paragraph (7)(C). In16 formation on such premium reduction, including en17 rollment, shall also be made available on website of 

18 the Departments of Labor, Treasury, and Health 

19 and Human Services. 

20 (10) DEFINITIONS.—For purposes of this sub21 section— 

22 (A) ADMINISTRATOR.—The term ‘‘admin23 istrator’’ has the meaning given such term in 

24 section 3(16) of the Employee Retirement In25 come Security Act of 1974 


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1 (B) COBRA CONTINUATION COVERAGE.— 

2 The term ‘‘COBRA continuation coverage’’ 

3 means continuation coverage provided pursuant 

4 to part 6 of subtitle B of title I of the Em5 ployee Retirement Income Security Act of 1974 

6 (other than under section 609), title XXII of 

7 the Public Health Service Act, section 4980B of 

8 the Internal Revenue Code of 1986 (other than 

9 subsection (f)(1) of such section insofar as it 

10 relates to pediatric vaccines), or section 8905a 

11 of title 5, United States Code, or under a State 

12 program that provides continuation coverage 

13 comparable to such continuation coverage. Such 

14 term does not include coverage under a health 

15 flexible spending arrangement. 

16 (C) COBRA CONTINUATION PROVISION.— 

17 The term ‘‘COBRA continuation provision’’ 

18 means the provisions of law described in sub19 paragraph (B). 

20 (D) COVERED EMPLOYEE.—The term 

21 ‘‘covered employee’’ has the meaning given such 

22 term in section 607(2) of the Employee Retire23 ment Income Security Act of 1974. 

24 (E) QUALIFIED BENEFICIARY.—The term 

25 ‘‘qualified beneficiary’’ has the meaning given 


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1 such term in section 607(3) of the Employee 

2 Retirement Income Security Act of 1974. 

3 (F) GROUP HEALTH PLAN.—The term 

4 ‘‘group health plan’’ has the meaning given 

5 such term in section 607(1) of the Employee 

6 Retirement Income Security Act of 1974. 

7 (G) STATE.—The term ‘‘State’’ includes 

8 the District of Columbia, the Commonwealth of 

9 Puerto Rico, the Virgin Islands, Guam, Amer10 ican Samoa, and the Commonwealth of the 

11 Northern Mariana Islands. 

12 (11) REPORTS.— 

13 (A) INTERIM REPORT.—The Secretary of 

14 the Treasury shall submit an interim report to 

15 the Committee on Education and Labor, the 

16 Committee on Ways and Means, and the Com17 mittee on Energy and Commerce of the House 

18 of Representatives and the Committee on 

19 Health, Education, Labor, and Pensions and 

20 the Committee on Finance of the Senate re21 garding the premium reduction provided under 

22 this subsection that includes— 

23 (i) the number of individuals provided 

24 such assistance as of the date of the re25 port; and 


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1 (ii) the total amount of expenditures 

2 incurred (with administrative expenditures 

3 noted separately) in connection with such 

4 assistance as of the date of the report. 

5 (B) FINAL REPORT.—As soon as prac6 ticable after the last period of COBRA continu7 ation coverage for which premium reduction is 

8 provided under this section, the Secretary of the 

9 Treasury shall submit a final report to each 

10 Committee referred to in subparagraph (A) that 

11 includes— 

12 (i) the number of individuals provided 

13 premium reduction under this section; 

14 (ii) the average dollar amount 

15 (monthly and annually) of premium reduc16 tions provided to such individuals; and 

17 (iii) the total amount of expenditures 

18 incurred (with administrative expenditures 

19 noted separately) in connection with pre20 mium reduction under this section. 

21 (12) COBRA PREMIUM ASSISTANCE.— 

22 (A) IN GENERAL.—Subchapter B of chap23 ter 65 of the Internal Revenue Code of 1986 is 

24 amended by adding at the end the following 

25 new section: 


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1 ‘‘SEC. 6432. COBRA PREMIUM ASSISTANCE. 

2 ‘‘(a) IN GENERAL.—The person to whom premiums 

3 are payable under COBRA continuation coverage shall be 

4 reimbursed for the amount of premiums not paid by plan 

5 beneficiaries by reason of section 3001(b) of the American 

6 Recovery and Reinvestment Act of 2009. Such amount 

7 shall be treated as a credit against the requirement of such 

8 person to make deposits of payroll taxes and the liability 

9 of such person for payroll taxes. To the extent that such 

10 amount exceeds the amount of such taxes, the Secretary 

11 shall pay to such person the amount of such excess. No 

12 payment may be made under this subsection to a person 

13 with respect to any assistance eligible individual until after 

14 such person has received the reduced premium from such 

15 individual required under section 3001(a)(1)(A) of such 

16 Act. 

17 ‘‘(b) PAYROLL TAXES.—For purposes of this section, 

18 the term ‘payroll taxes’ means— 

19 ‘‘(1) amounts required to be deducted and with20 held for the payroll period under section 3401 (relat21 ing to wage withholding), 

22 ‘‘(2) amounts required to be deducted for the 

23 payroll period under section 3102 (relating to FICA 

24 employee taxes), and 


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1 ‘‘(3) amounts of the taxes imposed for the pay2 roll period under section 3111 (relating to FICA em3 ployer taxes). 

4 ‘‘(c) TREATMENT OF CREDIT.—Except as otherwise 

5 provided by the Secretary, the credit described in sub6 section (a) shall be applied as though the employer had 

7 paid to the Secretary, on the day that the qualified bene8 ficiary’s premium payment is received, an amount equal 

9 to such credit. 

10 ‘‘(d) TREATMENT OF PAYMENT.—For purposes of 

11 section 1324(b)(2) of title 31, United States Code, any 

12 payment under this subsection shall be treated in the same 

13 manner as a refund of the credit under section 35. 

14 ‘‘(e) REPORTING.— 

15 ‘‘(1) IN GENERAL.—Each person entitled to re16 imbursement under subsection (a) for any period 

17 shall submit such reports as the Secretary may re18 quire, including— 

19 ‘‘(A) an attestation of involuntary termi20 nation of employment for each covered em21 ployee on the basis of whose termination entitle22 ment to reimbursement is claimed under sub23 section (a), and 

24 ‘‘(B) a report of the amount of payroll 

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1 ing period and the estimated offsets of such 

2 taxes for the subsequent reporting period in 

3 connection with reimbursements under sub4 section (a). 

5 ‘‘(2) TIMING OF REPORTS RELATING TO

6 AMOUNT OF PAYROLL TAXES.—Reports required 

7 under paragraph (1)(B) shall be submitted at the 

8 same time as deposits of taxes imposed by chapters 

9 21, 22, and 24 or at such time as is specified by the 

10 Secretary. 

11 ‘‘(f) REGULATIONS.—The Secretary may issue such 

12 regulations or other guidance as may be necessary or ap13 propriate to carry out this section, including the require14 ment to report information or the establishment of other 

15 methods for verifying the correct amounts of payments 

16 and credits under this section, and the application of this 

17 section to group health plans which are multiemployer 

18 plans.’’. 

19 (B) SOCIAL SECURITY TRUST FUNDS HELD

20 HARMLESS.—In determining any amount trans21 ferred or appropriated to any fund under the 

22 Social Security Act, section 6432 of the Inter23 nal Revenue Code of 1986 shall not be taken 

24 into account. 


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1 (C) CLERICAL AMENDMENT.—The table of 

2 sections for subchapter B of chapter 65 of the 

3 Internal Revenue Code of 1986 is amended by 

4 adding at the end the following new item: 

‘‘Sec. 6432. COBRA premium assistance.’’. 

5 (D) EFFECTIVE DATE.—The amendments 

6 made by this paragraph shall apply to pre7 miums to which subsection (a)(1)(A) applies. 

8 (E) SPECIAL RULE.— 

9 (i) IN GENERAL.—In the case of an 

10 assistance eligible individual who pays the 

11 full premium amount required for COBRA 

12 continuation coverage for any month dur13 ing the 60-day period beginning on the 

14 first day of the first month after the date 

15 of enactment of this Act, the person to 

16 whom such payment is made shall— 

17 (I) make a reimbursement pay18 ment to such individual for the 

19 amount of such premium paid in ex20 cess of the amount required to be paid 

21 under subsection (b)(1)(A); or 

22 (II) provide credit to the indi23 vidual for such amount in a manner 

24 that reduces one or more subsequent 

25 premium payments that the individual 


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1 is required to pay under such sub2 section for the coverage involved. 

3 (ii) REIMBURSING EMPLOYER.—A 

4 person to which clause (i) applies shall be 

5 reimbursed as provided for in section 6432 

6 of the Internal Revenue Code of 1986 for 

7 any payment made, or credit provided, to 

8 the employee under such clause. 

9 (iii) PAYMENT OR CREDITS.—Unless 

10 it is reasonable to believe that the credit 

11 for the excess payment in clause (i)(II) will 

12 be used by the assistance eligible individual 

13 within 180 days of the date on which the 

14 person receives from the individual the 

15 payment of the full premium amount, a 

16 person to which clause (i) applies shall 

17 make the payment required under such 

18 clause to the individual within 60 days of 

19 such payment of the full premium amount. 

20 If, as of any day within the 180-day pe21 riod, it is no longer reasonable to believe 

22 that the credit will be used during that pe23 riod, payment equal to the remainder of 

24 the credit outstanding shall be made to the 

25 individual within 60 days of such day. 


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1 (13) PENALTY FOR FAILURE TO NOTIFY

2 HEALTH PLAN OF CESSATION OF ELIGIBILITY FOR

3 PREMIUM ASSISTANCE.— 

4 (A) IN GENERAL.—Part I of subchapter B 

5 of chapter 68 of the Internal Revenue Code of 

6 1986 is amended by adding at the end the fol7 lowing new section: 

8 ‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH 

9 PLAN OF CESSATION OF ELIGIBILITY FOR 

10 COBRA PREMIUM ASSISTANCE. 

11 ‘‘(a) IN GENERAL.—Any person required to notify a 

12 group health plan under section 3001(a)(2)(C) of the 

13 American Recovery and Reinvestment Act of 2009 who 

14 fails to make such a notification at such time and in such 

15 manner as the Secretary of Labor may require shall pay 

16 a penalty of 110 percent of the premium reduction pro17 vided under such section after termination of eligibility 

18 under such subsection. 

19 ‘‘(b) REASONABLE CAUSE EXCEPTION.—No penalty 

20 shall be imposed under subsection (a) with respect to any 

21 failure if it is shown that such failure is due to reasonable 

22 cause and not to willful neglect.’’. 

23 (B) CLERICAL AMENDMENT.—The table of 

24 sections of part I of subchapter B of chapter 68 


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1 of such Code is amended by adding at the end 

2 the following new item: 

‘‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility 

for COBRA premium assistance.’’. 

3 (C) EFFECTIVE DATE.—The amendments 

4 made by this paragraph shall apply to failures 

5 occurring after the date of the enactment of 

6 this Act. 

7 (14) COORDINATION WITH HCTC.— 

8 (A) IN GENERAL.—Subsection (g) of sec9 tion 35 of the Internal Revenue Code of 1986 

10 is amended by redesignating paragraph (9) as 

11 paragraph (10) and inserting after paragraph 

12 (8) the following new paragraph: 

13 ‘‘(9) COBRA PREMIUM ASSISTANCE.—In the 

14 case of an assistance eligible individual who receives 

15 premium reduction for COBRA continuation cov16 erage under section 3001(a) of the American Recov17 ery and Reinvestment Act of 2009 for any month 

18 during the taxable year, such individual shall not be 

19 treated as an eligible individual, a certified indi20 vidual, or a qualifying family member for purposes 

21 of this section or section 7527 with respect to such 

22 month.’’. 

23 (B) EFFECTIVE DATE.—The amendment 

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1 able years ending after the date of the enact2 ment of this Act. 

3 (15) EXCLUSION OF COBRA PREMIUM ASSIST4 ANCE FROM GROSS INCOME.— 

5 (A) IN GENERAL.—Part III of subchapter 

6 B of chapter 1 of the Internal Revenue Code of 

7 1986 is amended by inserting after section 

8 139B the following new section: 

9 ‘‘SEC. 139C. COBRA PREMIUM ASSISTANCE. 

10 ‘‘In the case of an assistance eligible individual (as 

11 defined in section 3001 of the American Recovery and Re12 investment Act of 2009), gross income does not include 

13 any premium reduction provided under subsection (a) of 

14 such section.’’. 

15 (B) CLERICAL AMENDMENT.—The table of 

16 sections for part III of subchapter B of chapter 

17 1 of such Code is amended by inserting after 

18 the item relating to section 139B the following 

19 new item: 

‘‘Sec. 139C. COBRA premium assistance.’’. 

20 (C) EFFECTIVE DATE.—The amendments 

21 made by this paragraph shall apply to taxable 

22 years ending after the date of the enactment of 

23 this Act. 


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1 Subtitle B—Transitional Medical 

2 Assistance (TMA) 

3 SEC. 3101. EXTENSION OF TRANSITIONAL MEDICAL ASSIST4 ANCE (TMA). 

5 (a) 18-MONTH EXTENSION.— 

6 (1) IN GENERAL.—Sections 1902(e)(1)(B) and 

7 1925(f) of the Social Security Act (42 U.S.C. 

8 1396a(e)(1)(B), 1396r–6(f)) are each amended by 

9 striking ‘‘September 30, 2003’’ and inserting ‘‘De10 cember 31, 2010’’. 

11 (2) EFFECTIVE DATE.—The amendments made 

12 by this subsection shall take effect on July 1, 2009. 

13 (b) STATE OPTION OF INITIAL 12-MONTH ELIGI14 BILITY.—Section 1925 of the Social Security Act (42 

15 U.S.C. 1396r–6) is amended— 

16 (1) in subsection (a)(1), by inserting ‘‘but sub17 ject to paragraph (5)’’ after ‘‘Notwithstanding any 

18 other provision of this title’’; 

19 (2) by adding at the end of subsection (a) the 

20 following: 

21 ‘‘(5) OPTION OF 12-MONTH INITIAL ELIGIBILITY

22 PERIOD.—A State may elect to treat any reference 

23 in this subsection to a 6-month period (or 6 months) 

24 as a reference to a 12-month period (or 12 months). 


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1 In the case of such an election, subsection (b) shall 

2 not apply.’’; and 

3 (3) in subsection (b)(1), by inserting ‘‘but sub4 ject to subsection (a)(5)’’ after ‘‘Notwithstanding 

5 any other provision of this title’’. 

6 (c) REMOVAL OF REQUIREMENT FOR PREVIOUS RE7 CEIPT OF MEDICAL ASSISTANCE.—Section 1925(a)(1) of 

8 such Act (42 U.S.C. 1396r–6(a)(1)), as amended by sub9 section (b)(1), is further amended— 

10 (1) by inserting ‘‘subparagraph (B) and’’ before 

11 ‘‘paragraph (5)’’; 

12 (2) by redesignating the matter after ‘‘RE13 QUIREMENT.—’’ as a subparagraph (A) with the 

14 heading ‘‘IN GENERAL.—’’ and with the same inden15 tation as subparagraph (B) (as added by paragraph 

16 (3)); and 

17 (3) by adding at the end the following: 

18 ‘‘(B) STATE OPTION TO WAIVE REQUIRE19 MENT FOR 3 MONTHS BEFORE RECEIPT OF

20 MEDICAL ASSISTANCE.—A State may, at its op21 tion, elect also to apply subparagraph (A) in 

22 the case of a family that was receiving such aid 

23 for fewer than three months or that had applied 

24 for and was eligible for such aid for fewer than 


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1 3 months during the 6 immediately preceding 

2 months described in such subparagraph.’’. 

3 (d) CMS REPORT ON ENROLLMENT AND PARTICIPA4 TION RATES UNDER TMA.—Section 1925 of such Act (42 

5 U.S.C. 1396r–6), as amended by this section, is further 

6 amended by adding at the end the following new sub7 section: 

8 ‘‘(g) COLLECTION AND REPORTING OF PARTICIPA9 TION INFORMATION.— 

10 ‘‘(1) COLLECTION OF INFORMATION FROM

11 STATES.—Each State shall collect and submit to the 

12 Secretary (and make publicly available), in a format 

13 specified by the Secretary, information on average 

14 monthly enrollment and average monthly participa15 tion rates for adults and children under this section 

16 and of the number and percentage of children who 

17 become ineligible for medical assistance under this 

18 section whose medical assistance is continued under 

19 another eligibility category or who are enrolled under 

20 the State’s child health plan under title XXI. Such 

21 information shall be submitted at the same time and 

22 frequency in which other enrollment information 

23 under this title is submitted to the Secretary. 

24 ‘‘(2) ANNUAL REPORTS TO CONGRESS.—Using 

25 the information submitted under paragraph (1), the 


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1 Secretary shall submit to Congress annual reports 

2 concerning enrollment and participation rates de3 scribed in such paragraph.’’. 

4 (e) EFFECTIVE DATE.—The amendments made by 

5 subsections (b) through (d) shall take effect on July 1, 

6 2009. 

7 Subtitle C—Extension of the 

8 Qualified Individual (QI) Program 

9 SEC. 3201. EXTENSION OF THE QUALIFYING INDIVIDUAL 

10 (QI) PROGRAM. 

11 (a) EXTENSION.—Section 1902(a)(10)(E)(iv) of the 

12 Social Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is 

13 amended by striking ‘‘December 2009’’ and inserting ‘‘De14 cember 2010’’. 

15 (b) EXTENDING TOTAL AMOUNT AVAILABLE FOR

16 ALLOCATION.—Section 1933(g) of such Act (42 U.S.C. 

17 1396u–3(g)) is amended— 

18 (1) in paragraph (2)— 

19 (A) by striking ‘‘and’’ at the end of sub20 paragraph (K); 

21 (B) in subparagraph (L), by striking the 

22 period at the end and inserting a semicolon; 

23 and 

24 (C) by adding at the end the following new 

25 subparagraphs: 


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1 ‘‘(M) for the period that begins on Janu2 ary 1, 2010, and ends on September 30, 2010, 

3 the total allocation amount is $412,500,000; 

4 and 

5 ‘‘(N) for the period that begins on October 

6 1, 2010, and ends on December 31, 2010, the 

7 total allocation amount is $150,000,000.’’; and 

8 (2) in paragraph (3), in the matter preceding 

9 subparagraph (A), by striking ‘‘or (L)’’ and insert10 ing ‘‘(L), or (N)’’. 

11 Subtitle D—Other Provisions 

12 SEC. 3301. PREMIUMS AND COST SHARING PROTECTIONS 

13 UNDER MEDICAID, ELIGIBILITY DETERMINA14 TIONS UNDER MEDICAID AND CHIP, AND 

15 PROTECTION OF CERTAIN INDIAN PROPERTY 

16 FROM MEDICAID ESTATE RECOVERY. 

17 (a) PREMIUMS AND COST SHARING PROTECTION

18 UNDER MEDICAID.— 

19 (1) IN GENERAL.—Section 1916 of the Social 

20 Security Act (42 U.S.C. 1396o) is amended— 

21 (A) in subsection (a), in the matter pre22 ceding paragraph (1), by striking ‘‘and (i)’’ and 

23 inserting ‘‘, (i), and (j)’’; and 

24 (B) by adding at the end the following new 

25 subsection: 


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1 ‘‘(j) NO PREMIUMS OR COST SHARING FOR INDIANS

2 FURNISHED ITEMS OR SERVICES DIRECTLY BY INDIAN

3 HEALTH PROGRAMS OR THROUGH REFERRAL UNDER

4 CONTRACT HEALTH SERVICES.— 

5 ‘‘(1) NO COST SHARING FOR ITEMS OR SERV6 ICES FURNISHED TO INDIANS THROUGH INDIAN

7 HEALTH PROGRAMS.— 

8 ‘‘(A) IN GENERAL.—No enrollment fee, 

9 premium, or similar charge, and no deduction, 

10 copayment, cost sharing, or similar charge shall 

11 be imposed against an Indian who is furnished 

12 an item or service directly by the Indian Health 

13 Service, an Indian Tribe, Tribal Organization, 

14 or Urban Indian Organization or through refer15 ral under contract health services for which 

16 payment may be made under this title. 

17 ‘‘(B) NO REDUCTION IN AMOUNT OF PAY18 MENT TO INDIAN HEALTH PROVIDERS.—Pay19 ment due under this title to the Indian Health 

20 Service, an Indian Tribe, Tribal Organization, 

21 or Urban Indian Organization, or a health care 

22 provider through referral under contract health 

23 services for the furnishing of an item or service 

24 to an Indian who is eligible for assistance under 

25 such title, may not be reduced by the amount 


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1 of any enrollment fee, premium, or similar 

2 charge, or any deduction, copayment, cost shar3 ing, or similar charge that would be due from 

4 the Indian but for the operation of subpara5 graph (A). 

6 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

7 this subsection shall be construed as restricting the 

8 application of any other limitations on the imposi9 tion of premiums or cost sharing that may apply to 

10 an individual receiving medical assistance under this 

11 title who is an Indian.’’. 

12 (2) CONFORMING AMENDMENT.—Section 

13 1916A(b)(3) of such Act (42 U.S.C. 1396o–1(b)(3)) 

14 is amended— 

15 (A) in subparagraph (A), by adding at the 

16 end the following new clause: 

17 ‘‘(vi) An Indian who is furnished an 

18 item or service directly by the Indian 

19 Health Service, an Indian Tribe, Tribal 

20 Organization or Urban Indian Organiza21 tion or through referral under contract 

22 health services.’’; and 

23 (B) in subparagraph (B), by adding at the 

24 end the following new clause: 


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1 ‘‘(ix) Items and services furnished to 

2 an Indian directly by the Indian Health 

3 Service, an Indian Tribe, Tribal Organiza4 tion or Urban Indian Organization or 

5 through referral under contract health 

6 services.’’. 

7 (b) TREATMENT OF CERTAIN PROPERTY FROM RE8 SOURCES FOR MEDICAID AND CHIP ELIGIBILITY.— 

9 (1) MEDICAID.—Section 1902 of the Social Se10 curity Act (42 U.S.C. 1396a) is amended by adding 

11 at the end the following new subsection: 

12 ‘‘(dd) Notwithstanding any other requirement of this 

13 title or any other provision of Federal or State law, a State 

14 shall disregard the following property from resources for 

15 purposes of determining the eligibility of an individual who 

16 is an Indian for medical assistance under this title: 

17 ‘‘(1) Property, including real property and im18 provements, that is held in trust, subject to Federal 

19 restrictions, or otherwise under the supervision of 

20 the Secretary of the Interior, located on a reserva21 tion, including any federally recognized Indian 

22 Tribe’s reservation, pueblo, or colony, including 

23 former reservations in Oklahoma, Alaska Native re24 gions established by the Alaska Native Claims Set25 tlement Act, and Indian allotments on or near a resVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00633 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 ervation as designated and approved by the Bureau 

2 of Indian Affairs of the Department of the Interior. 

3 ‘‘(2) For any federally recognized Tribe not de4 scribed in paragraph (1), property located within the 

5 most recent boundaries of a prior Federal reserva6 tion. 

7 ‘‘(3) Ownership interests in rents, leases, royal8 ties, or usage rights related to natural resources (in9 cluding extraction of natural resources or harvesting 

10 of timber, other plants and plant products, animals, 

11 fish, and shellfish) resulting from the exercise of fed12 erally protected rights. 

13 ‘‘(4) Ownership interests in or usage rights to 

14 items not covered by paragraphs (1) through (3) 

15 that have unique religious, spiritual, traditional, or 

16 cultural significance or rights that support subsist17 ence or a traditional lifestyle according to applicable 

18 tribal law or custom.’’. 

19 (2) APPLICATION TO CHIP.—Section 2107(e)(1) 

20 of such Act (42 U.S.C. 1397gg(e)(1)) is amended— 

21 (A) by redesignating subparagraphs (B) 

22 through (E), as subparagraphs (C) through 

23 (F), respectively; and 

24 (B) by inserting after subparagraph (A), 

25 the following new subparagraph: 


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1 ‘‘(B) Section 1902(dd) (relating to dis2 regard of certain property for purposes of mak3 ing eligibility determinations).’’. 

4 (c) CONTINUATION OF CURRENT LAW PROTECTIONS

5 OF CERTAIN INDIAN PROPERTY FROM MEDICAID ESTATE

6 RECOVERY.—Section 1917(b)(3) of the Social Security 

7 Act (42 U.S.C. 1396p(b)(3)) is amended— 

8 (1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 

9 (2) by adding at the end the following new sub10 paragraph: 

11 ‘‘(B) The standards specified by the Sec12 retary under subparagraph (A) shall require 

13 that the procedures established by the State 

14 agency under subparagraph (A) exempt income, 

15 resources, and property that are exempt from 

16 the application of this subsection as of April 1, 

17 2003, under manual instructions issued to carry 

18 out this subsection (as in effect on such date) 

19 because of the Federal responsibility for Indian 

20 Tribes and Alaska Native Villages. Nothing in 

21 this subparagraph shall be construed as pre22 venting the Secretary from providing additional 

23 estate recovery exemptions under this title for 

24 Indians.’’. 


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1 SEC. 3302. RULES APPLICABLE UNDER MEDICAID AND CHIP 

2 TO MANAGED CARE ENTITIES WITH RESPECT 

3 TO INDIAN ENROLLEES AND INDIAN HEALTH 

4 CARE PROVIDERS AND INDIAN MANAGED 

5 CARE ENTITIES. 

6 (a) IN GENERAL.—Section 1932 of the Social Secu7 rity Act (42 U.S.C. 1396u–2) is amended by adding at 

8 the end the following new subsection: 

9 ‘‘(h) SPECIAL RULES WITH RESPECT TO INDIAN EN10 ROLLEES, INDIAN HEALTH CARE PROVIDERS, AND IN11 DIAN MANAGED CARE ENTITIES.— 

12 ‘‘(1) ENROLLEE OPTION TO SELECT AN INDIAN

13 HEALTH CARE PROVIDER AS PRIMARY CARE PRO14 VIDER.—In the case of a non-Indian Medicaid man15 aged care entity that— 

16 ‘‘(A) has an Indian enrolled with the enti17 ty; and 

18 ‘‘(B) has an Indian health care provider 

19 that is participating as a primary care provider 

20 within the network of the entity, 

21 insofar as the Indian is otherwise eligible to receive 

22 services from such Indian health care provider and 

23 the Indian health care provider has the capacity to 

24 provide primary care services to such Indian, the 

25 contract with the entity under section 1903(m) or 

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1 tion of receiving payment under such contract, that 

2 the Indian shall be allowed to choose such Indian 

3 health care provider as the Indian’s primary care 

4 provider under the entity. 

5 ‘‘(2) ASSURANCE OF PAYMENT TO INDIAN

6 HEALTH CARE PROVIDERS FOR PROVISION OF COV7 ERED SERVICES.—Each contract with a managed 

8 care entity under section 1903(m) or under section 

9 1905(t)(3) shall require any such entity, as a condi10 tion of receiving payment under such contract, to 

11 satisfy the following requirements: 

12 ‘‘(A) DEMONSTRATION OF ACCESS TO IN13 DIAN HEALTH CARE PROVIDERS AND APPLICA14 TION OF ALTERNATIVE PAYMENT ARRANGE15 MENTS.—Subject to subparagraph (C), to— 

16 ‘‘(i) demonstrate that the number of 

17 Indian health care providers that are par18 ticipating providers with respect to such 

19 entity are sufficient to ensure timely access 

20 to covered Medicaid managed care services 

21 for those Indian enrollees who are eligible 

22 to receive services from such providers; and 

23 ‘‘(ii) agree to pay Indian health care 

24 providers, whether such providers are par25 ticipating or nonparticipating providers 


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1 with respect to the entity, for covered Med2 icaid managed care services provided to 

3 those Indian enrollees who are eligible to 

4 receive services from such providers at a 

5 rate equal to the rate negotiated between 

6 such entity and the provider involved or, if 

7 such a rate has not been negotiated, at a 

8 rate that is not less than the level and 

9 amount of payment which the entity would 

10 make for the services if the services were 

11 furnished by a participating provider which 

12 is not an Indian health care provider. 

13 ‘‘(B) PROMPT PAYMENT.—To agree to 

14 make prompt payment (consistent with rule for 

15 prompt payment of providers under section 

16 1932(f)) to Indian health care providers that 

17 are participating providers with respect to such 

18 entity or, in the case of an entity to which sub19 paragraph (A)(ii) or (C) applies, that the entity 

20 is required to pay in accordance with that sub21 paragraph. 

22 ‘‘(C) APPLICATION OF SPECIAL PAYMENT

23 REQUIREMENTS FOR FEDERALLY-QUALIFIED

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1 VIDED BY CERTAIN INDIAN HEALTH CARE PRO2 VIDERS.— 

3 ‘‘(i) FEDERALLY-QUALIFIED HEALTH

4 CENTERS.— 

5 ‘‘(I) MANAGED CARE ENTITY

6 PAYMENT REQUIREMENT.—To agree 

7 to pay any Indian health care provider 

8 that is a federally-qualified health 

9 center under this title but not a par10 ticipating provider with respect to the 

11 entity, for the provision of covered 

12 Medicaid managed care services by 

13 such provider to an Indian enrollee of 

14 the entity at a rate equal to the 

15 amount of payment that the entity 

16 would pay a federally-qualified health 

17 center that is a participating provider 

18 with respect to the entity but is not 

19 an Indian health care provider for 

20 such services. 

21 ‘‘(II) CONTINUED APPLICATION

22 OF STATE REQUIREMENT TO MAKE

23 SUPPLEMENTAL PAYMENT.—Nothing 

24 in subclause (I) or subparagraph (A) 

25 or (B) shall be construed as waiving 


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1 the application of section 1902(bb)(5) 

2 regarding the State plan requirement 

3 to make any supplemental payment 

4 due under such section to a federally5 qualified health center for services 

6 furnished by such center to an en7 rollee of a managed care entity (re8 gardless of whether the federally9 qualified health center is or is not a 

10 participating provider with the entity). 

11 ‘‘(ii) PAYMENT RATE FOR SERVICES

12 PROVIDED BY CERTAIN INDIAN HEALTH

13 CARE PROVIDERS.—If the amount paid by 

14 a managed care entity to an Indian health 

15 care provider that is not a federally-quali16 fied health center for services provided by 

17 the provider to an Indian enrollee with the 

18 managed care entity is less than the rate 

19 that applies to the provision of such serv20 ices by the provider under the State plan, 

21 the plan shall provide for payment to the 

22 Indian health care provider, whether the 

23 provider is a participating or nonpartici24 pating provider with respect to the entity, 

25 of the difference between such applicable 


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1 rate and the amount paid by the managed 

2 care entity to the provider for such serv3 ices. 

4 ‘‘(D) CONSTRUCTION.—Nothing in this 

5 paragraph shall be construed as waiving the ap6 plication of section 1902(a)(30)(A) (relating to 

7 application of standards to assure that pay8 ments are consistent with efficiency, economy, 

9 and quality of care). 

10 ‘‘(3) SPECIAL RULE FOR ENROLLMENT FOR IN11 DIAN MANAGED CARE ENTITIES.—Regarding the ap12 plication of a Medicaid managed care program to In13 dian Medicaid managed care entities, an Indian 

14 Medicaid managed care entity may restrict enroll15 ment under such program to Indians and to mem16 bers of specific Tribes in the same manner as Indian 

17 Health Programs may restrict the delivery of serv18 ices to such Indians and tribal members. 

19 ‘‘(4) DEFINITIONS.—For purposes of this sub20 section: 

21 ‘‘(A) INDIAN HEALTH CARE PROVIDER.— 

22 The term ‘Indian health care provider’ means 

23 an Indian Health Program or an Urban Indian 

24 Organization. 


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1 ‘‘(B) INDIAN MEDICAID MANAGED CARE

2 ENTITY.—The term ‘Indian Medicaid managed 

3 care entity’ means a managed care entity that 

4 is controlled (within the meaning of the last 

5 sentence of section 1903(m)(1)(C)) by the In6 dian Health Service, a Tribe, Tribal Organiza7 tion, or Urban Indian Organization, or a con8 sortium, which may be composed of 1 or more 

9 Tribes, Tribal Organizations, or Urban Indian 

10 Organizations, and which also may include the 

11 Service. 

12 ‘‘(C) NON-INDIAN MEDICAID MANAGED

13 CARE ENTITY.—The term ‘non-Indian Medicaid 

14 managed care entity’ means a managed care en15 tity that is not an Indian Medicaid managed 

16 care entity. 

17 ‘‘(D) COVERED MEDICAID MANAGED CARE

18 SERVICES.—The term ‘covered Medicaid man19 aged care services’ means, with respect to an 

20 individual enrolled with a managed care entity, 

21 items and services for which benefits are avail22 able with respect to the individual under the 

23 contract between the entity and the State in24 volved. 


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1 ‘‘(E) MEDICAID MANAGED CARE PRO2 GRAM.—The term ‘Medicaid managed care pro3 gram’ means a program under sections 

4 1903(m), 1905(t), and 1932 and includes a 

5 managed care program operating under a waiv6 er under section 1915(b) or 1115 or other7 wise.’’. 

8 (b) APPLICATION TO CHIP.—Subject to section 

9 l013(d), section 2107(e)(1) of such Act (42 U.S.C. 

10 1397gg(1)) is amended by adding at the end the following 

11 new subparagraph: 

12 ‘‘(E) Subsections (a)(2)(C) and (h) of sec13 tion 1932.’’. 

14 SEC. 3303. CONSULTATION ON MEDICAID, CHIP, AND 

15 OTHER HEALTH CARE PROGRAMS FUNDED 

16 UNDER THE SOCIAL SECURITY ACT INVOLV17 ING INDIAN HEALTH PROGRAMS AND URBAN 

18 INDIAN ORGANIZATIONS. 

19 (a) CONSULTATION WITH TRIBAL TECHNICAL ADVI20 SORY GROUP (TTAG).—The Secretary of Health and 

21 Human Services shall maintain within the Centers for 

22 Medicaid & Medicare Services (CMS) a Tribal Technical 

23 Advisory Group (TTAG), which was first established in 

24 accordance with requirements of the charter dated Sep25 tember 30, 2003, and the Secretary of Health and Human 


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1 Services shall include in such Group a representative of 

2 a national urban Indian health organization and a rep3 resentative of the Indian Health Service. The inclusion of 

4 a representative of a national urban Indian health organi5 zation in such Group shall not affect the nonapplication 

6 of the Federal Advisory Committee Act (5 U.S.C. App.) 

7 to such Group. 

8 (b) SOLICITATION OF ADVICE UNDER MEDICAID AND

9 CHIP.— 

10 (1) MEDICAID STATE PLAN AMENDMENT.— 

11 Subject to subsection (d), section 1902(a) of the So12 cial Security Act (42 U.S.C. 1396a(a)) is amend13 ed— 

14 (A) in paragraph (70), by striking ‘‘and’’ 

15 at the end; 

16 (B) in paragraph (71), by striking the pe17 riod at the end and inserting ‘‘; and’’; and 

18 (C) by inserting after paragraph (71), the 

19 following new paragraph: 

20 ‘‘(72) in the case of any State in which 1 or 

21 more Indian Health Programs or Urban Indian Or22 ganizations furnishes health care services, provide 

23 for a process under which the State seeks advice on 

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1 tions on matters relating to the application of this 

2 title that are likely to have a direct effect on such 

3 Indian Health Programs and Urban Indian Organi4 zations and that— 

5 ‘‘(A) shall include solicitation of advice 

6 prior to submission of any plan amendments, 

7 waiver requests, and proposals for demonstra8 tion projects likely to have a direct effect on In9 dians, Indian Health Programs, or Urban In10 dian Organizations; and 

11 ‘‘(B) may include appointment of an advi12 sory committee and of a designee of such In13 dian Health Programs and Urban Indian Orga14 nizations to the medical care advisory com15 mittee advising the State on its State plan 

16 under this title.’’. 

17 (2) APPLICATION TO CHIP.—Subject to sub18 section (d), section 2107(e)(1) of such Act (42 

19 U.S.C. 1397gg(e)(1)), as amended by section 

20 3302(b)(2), is amended— 

21 (A) by redesignating subparagraphs (B) 

22 through (E) as subparagraphs (C) through (F), 

23 respectively; and 

24 (B) by inserting after subparagraph (A), 

25 the following new subparagraph: 


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1 ‘‘(B) Section 1902(a)(72) (relating to re2 quiring certain States to seek advice from des3 ignees of Indian Health Programs and Urban 

4 Indian Organizations).’’. 

5 (c) RULE OF CONSTRUCTION.—Nothing in the 

6 amendments made by this section shall be construed as 

7 superseding existing advisory committees, working groups, 

8 guidance, or other advisory procedures established by the 

9 Secretary of Health and Human Services or by any State 

10 with respect to the provision of health care to Indians. 

11 (d) CONTINGENCY RULE.—If the Children’s Health 

12 Insurance Program Reauthorization Act of 2009 (in this 

13 subsection referred to as ‘‘CHIPRA’’) has been enacted 

14 as of the date of enactment of this Act, the following shall 

15 apply: 

16 (1) Subparagraph (I) of section 2107(e) of the 

17 Social Security Act (as redesignated by CHIPRA) is 

18 redesignated as subparagraph (K) and the subpara19 graph (E) added to section 2107(e) of the Social Se20 curity Act by section 3302(b) is redesignated as sub21 paragraph (J). 

22 (2) Subparagraphs (D) through (H) of section 

23 2107(e) of the Social Security Act (as added and re24 designated by CHIPRA) are redesignated as sub25 paragraphs (E) through (I), respectively and the 


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1 subparagraph (B) of section 2107(e) of the Social 

2 Security Act added by subsection (b)(2) of this sec3 tion is redesignated as subparagraph (D) and 

4 amended by striking ‘‘1902(a)(72)’’ and inserting 

5 ‘‘1902(a)(73)’’. 

6 (3) Section 1902(a) of the Social Security Act 

7 (as amended by CHIPRA) is amended by striking 

8 ‘‘and’’ at the end of paragraph (71), by striking the 

9 period at the end of the paragraph (72) added by 

10 CHIPRA and inserting ‘‘; and’’ and by redesignated 

11 the paragraph (72) added to such section by sub12 section (b)(1) of this section as paragraph (73). 

13 SEC. 3304. APPLICATION OF PROMPT PAY REQUIREMENTS 

14 TO NURSING FACILITIES. 

15 Section 1902(a)(37)(A) of the Social Security Act 

16 (42 U.S.C. 1396a(a)(37)(A)) is amended by inserting ‘‘, 

17 or by nursing facilities,’’ after ‘‘health facilities’’ 

18 SEC. 3305. PERIOD OF APPLICATION; SUNSET. 

19 This subtitle and the amendments made by this sub20 title shall be in effect only during the period that begins 

21 on April 1, 2009, and ends on December 31, 2010. On 

22 and after January 1, 2011, the Social Security Act shall 

23 be applied as if this subtitle and the amendments made 

24 by this subtitle had not been enacted. 


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AMDT. NO. 98 

1 TITLE IV—HEALTH 

2 INFORMATION TECHNOLOGY 

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

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

5 ‘‘Medicare and Medicaid Health Information Technology 

6 for Economic and Clinical Health Act’’ or the ‘‘M7 HITECH Act’’. 

8 (b) TABLE OF CONTENTS OF TITLE.—The table of 

9 contents for this title is as follows: 

TITLE IV—HEALTH INFORMATION TECHNOLOGY 

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

Subtitle A—Medicare Program 

Sec. 4201. Incentives for eligible professionals. 

Sec. 4202. Incentives for hospitals. 

Sec. 4203. Premium hold harmless and implementation funding. 

Sec. 4204. Non-application of phased-out indirect medical education (IME) adjustment factor for fiscal year 2009. 

Sec. 4205. Study on application of EHR payment incentives for providers not 

receiving other incentive payments. 

Sec. 4206. Study on availability of open source health information technology 

systems. 

Subtitle B—Medicaid Funding 

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

10 Subtitle A—Medicare Program 

11 SEC. 4201. INCENTIVES FOR ELIGIBLE PROFESSIONALS. 

12 (a) INCENTIVE PAYMENTS.—Section 1848 of the So13 cial Security Act (42 U.S.C. 1395w–4) is amended by add14 ing at the end the following new subsection: 

15 ‘‘(o) INCENTIVES FOR ADOPTION AND MEANINGFUL

16 USE OF CERTIFIED EHR TECHNOLOGY.— 


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1 ‘‘(1) INCENTIVE PAYMENTS.— 

2 ‘‘(A) IN GENERAL.— 

3 ‘‘(i) IN GENERAL.—Subject to clause 

4 (ii) and the succeeding subparagraphs of 

5 this paragraph, with respect to covered 

6 professional services furnished by an eligi7 ble professional during a payment year (as 

8 defined in subparagraph (E)), if the eligi9 ble professional is a meaningful EHR user 

10 (as determined under paragraph (2)) for 

11 the reporting period with respect to such 

12 year, in addition to the amount otherwise 

13 paid under this part, there also shall be 

14 paid to the eligible professional (or to an 

15 employer or facility in the cases described 

16 in clause (A) of section 1842(b)(6)), from 

17 the Federal Supplementary Medical Insur18 ance Trust Fund established under section 

19 1841 an amount equal to 75 percent of the 

20 Secretary’s estimate (based on claims sub21 mitted not later than 2 months after the 

22 end of the payment year) of the allowed 

23 charges under this part for all such cov24 ered professional services furnished by the 

25 eligible professional during such year. 


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1 ‘‘(ii) NO INCENTIVE PAYMENTS WITH

2 RESPECT TO YEARS AFTER 2015.—No in3 centive payments may be made under this 

4 subsection with respect to a year after 

5 2015. 

6 ‘‘(B) LIMITATIONS ON AMOUNTS OF IN7 CENTIVE PAYMENTS.— 

8 ‘‘(i) IN GENERAL.—In no case shall 

9 the amount of the incentive payment pro10 vided under this paragraph for an eligible 

11 professional for a payment year exceed the 

12 applicable amount specified under this sub13 paragraph with respect to such eligible 

14 professional and such year. 

15 ‘‘(ii) AMOUNT.—Subject to clauses 

16 (iii) through (v), the applicable amount 

17 specified in this subparagraph for an eligi18 ble professional is as follows: 

19 ‘‘(I) For the first payment year 

20 for such professional, $15,000 (or, if 

21 the first payment year for such eligi22 ble professional is 2011 or 2012, 

23 $18,000). 

24 ‘‘(II) For the second payment 

25 year for such professional, $12,000. 


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1 ‘‘(III) For the third payment 

2 year for such professional, $8,000. 

3 ‘‘(IV) For the fourth payment 

4 year for such professional, $4,000. 

5 ‘‘(V) For the fifth payment year 

6 for such professional, $2,000. 

7 ‘‘(VI) For any succeeding pay8 ment year for such professional, $0. 

9 ‘‘(iii) PHASE DOWN FOR ELIGIBLE

10 PROFESSIONALS FIRST ADOPTING EHR IN

11 2014.—If the first payment year for an eli12 gible professional is 2014, then the amount 

13 specified in this subparagraph for a pay14 ment year for such professional is the 

15 same as the amount specified in clause (ii) 

16 for such payment year for an eligible pro17 fessional whose first payment year is 2013. 

18 ‘‘(iv) INCREASE FOR CERTAIN RURAL

19 ELIGIBLE PROFESSIONALS.—In the case of 

20 an eligible professional who predominantly 

21 furnishes services under this part in a 

22 rural area that is designated by the Sec23 retary (under section 332(a)(1)(A) of the 

24 Public Health Service Act) as a health pro25 fessional shortage area, the amount that 


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AMDT. NO. 98 

1 would otherwise apply for a payment year 

2 for such professional under subclauses (I) 

3 through (V) of clause (ii) shall be in4 creased by 25 percent. In implementing 

5 the preceding sentence, the Secretary may, 

6 as determined appropriate, apply provi7 sions of subsections (m) and (u) of section 

8 1833 in a similar manner as such provi9 sions apply under such subsection. 

10 ‘‘(v) NO INCENTIVE PAYMENT IF

11 FIRST ADOPTING AFTER 2014.—If the first 

12 payment year for an eligible professional is 

13 after 2014 then the applicable amount 

14 specified in this subparagraph for such 

15 professional for such year and any subse16 quent year shall be $0. 

17 ‘‘(C) NON-APPLICATION TO HOSPITAL18 BASED ELIGIBLE PROFESSIONALS.— 

19 ‘‘(i) IN GENERAL.—No incentive pay20 ment may be made under this paragraph 

21 in the case of a hospital-based eligible pro22 fessional. 

23 ‘‘(ii) HOSPITAL-BASED ELIGIBLE PRO24 FESSIONAL.—For purposes of clause (i), 

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1 sional’ means, with respect to covered pro2 fessional services furnished by an eligible 

3 professional during the reporting period for 

4 a payment year, an eligible professional, 

5 such as a pathologist, anesthesiologist, or 

6 emergency physician, who furnishes sub7 stantially all of such services in a hospital 

8 setting (whether inpatient or outpatient) 

9 and through the use of the facilities and 

10 equipment, including qualified electronic 

11 health records, of the hospital. 

12 ‘‘(D) PAYMENT.— 

13 ‘‘(i) FORM OF PAYMENT.—The pay14 ment under this paragraph may be in the 

15 form of a single consolidated payment or 

16 in the form of such periodic installments 

17 as the Secretary may specify. 

18 ‘‘(ii) COORDINATION OF APPLICATION

19 OF LIMITATION FOR PROFESSIONALS IN

20 DIFFERENT PRACTICES.—In the case of an 

21 eligible professional furnishing covered pro22 fessional services in more than one practice 

23 (as specified by the Secretary), the Sec24 retary shall establish rules to coordinate 

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1 plication of the limitation on amounts of 

2 such incentive payments under this para3 graph, among such practices. 

4 ‘‘(iii) COORDINATION WITH MED5 ICAID.—The Secretary shall seek, to the 

6 maximum extent practicable, to avoid du7 plicative requirements from Federal and 

8 State Governments to demonstrate mean9 ingful use of certified EHR technology 

10 under this title and title XIX. In doing so, 

11 the Secretary may deem satisfaction of 

12 State requirements for such meaningful 

13 use for a payment year under title XIX to 

14 be sufficient to qualify as meaningful use 

15 under this subsection and subsection (a)(7) 

16 and vice versa. The Secretary may also ad17 just the reporting periods under such title 

18 and such subsections in order to carry out 

19 this clause. 

20 ‘‘(E) PAYMENT YEAR DEFINED.— 

21 ‘‘(i) IN GENERAL.—For purposes of 

22 this subsection, the term ‘payment year’ 

23 means a year beginning with 2011. 

24 ‘‘(ii) FIRST, SECOND, ETC. PAYMENT

25 YEAR.—The term ‘first payment year’ 


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1 means, with respect to covered professional 

2 services furnished by an eligible profes3 sional, the first year for which an incentive 

4 payment is made for such services under 

5 this subsection. The terms ‘second pay6 ment year’, ‘third payment year’, ‘fourth 

7 payment year’, and ‘fifth payment year’ 

8 mean, with respect to covered professional 

9 services furnished by such eligible profes10 sional, each successive year immediately 

11 following the first payment year for such 

12 professional. 

13 ‘‘(2) MEANINGFUL EHR USER.— 

14 ‘‘(A) IN GENERAL.—For purposes of para15 graph (1), an eligible professional shall be 

16 treated as a meaningful EHR user for a report17 ing period for a payment year (or, for purposes 

18 of subsection (a)(7), for a reporting period 

19 under such subsection for a year) if each of the 

20 following requirements is met: 

21 ‘‘(i) MEANINGFUL USE OF CERTIFIED

22 EHR TECHNOLOGY.—The eligible profes23 sional demonstrates to the satisfaction of 

24 the Secretary, in accordance with subpara25 graph (C)(i), that during such period the 


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1 professional is using certified EHR tech2 nology in a meaningful manner, which 

3 shall include the use of electronic pre4 scribing as determined to be appropriate 

5 by the Secretary. 

6 ‘‘(ii) INFORMATION EXCHANGE.—The 

7 eligible professional demonstrates to the 

8 satisfaction of the Secretary, in accordance 

9 with subparagraph (C)(i), that during such 

10 period such certified EHR technology is 

11 connected in a manner that provides, in 

12 accordance with law and standards appli13 cable to the exchange of information, for 

14 the electronic exchange of health informa15 tion to improve the quality of health care, 

16 such as promoting care coordination. 

17 ‘‘(iii) REPORTING ON MEASURES

18 USING EHR.—Subject to subparagraph 

19 (B)(ii) and using such certified EHR tech20 nology, the eligible professional submits in21 formation for such period, in a form and 

22 manner specified by the Secretary, on such 

23 clinical quality measures and such other 

24 measures as selected by the Secretary 

25 under subparagraph (B)(i). 


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1 The Secretary may provide for the use of alter2 native means for meeting the requirements of 

3 clauses (i), (ii), and (iii) in the case of an eligi4 ble professional furnishing covered professional 

5 services in a group practice (as defined by the 

6 Secretary). The Secretary shall seek to improve 

7 the use of electronic health records and health 

8 care quality over time by requiring more strin9 gent measures of meaningful use selected under 

10 this paragraph. 

11 ‘‘(B) REPORTING ON MEASURES.— 

12 ‘‘(i) SELECTION.—The Secretary shall 

13 select measures for purposes of subpara14 graph (A)(iii) but only consistent with the 

15 following: 

16 ‘‘(I) The Secretary shall provide 

17 preference to clinical quality measures 

18 that have been endorsed by the entity 

19 with a contract with the Secretary 

20 under section 1890(a). 

21 ‘‘(II) Prior to any measure being 

22 selected under this subparagraph, the 

23 Secretary shall publish in the Federal 

24 Register such measure and provide for 


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1 a period of public comment on such 

2 measure. 

3 ‘‘(ii) LIMITATION.—The Secretary 

4 may not require the electronic reporting of 

5 information on clinical quality measures 

6 under subparagraph (A)(iii) unless the 

7 Secretary has the capacity to accept the in8 formation electronically, which may be on 

9 a pilot basis. 

10 ‘‘(iii) COORDINATION OF REPORTING

11 OF INFORMATION.—In selecting such 

12 measures, and in establishing the form and 

13 manner for reporting measures under sub14 paragraph (A)(iii), the Secretary shall seek 

15 to avoid redundant or duplicative reporting 

16 otherwise required, including reporting 

17 under subsection (k)(2)(C). 

18 ‘‘(C) DEMONSTRATION OF MEANINGFUL

19 USE OF CERTIFIED EHR TECHNOLOGY AND IN20 FORMATION EXCHANGE.— 

21 ‘‘(i) IN GENERAL.—A professional 

22 may satisfy the demonstration requirement 

23 of clauses (i) and (ii) of subparagraph (A) 

24 through means specified by the Secretary, 

25 which may include— 


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1 ‘‘(I) an attestation; 

2 ‘‘(II) the submission of claims 

3 with appropriate coding (such as a 

4 code indicating that a patient encoun5 ter was documented using certified 

6 EHR technology); 

7 ‘‘(III) a survey response; 

8 ‘‘(IV) reporting under subpara9 graph (A)(iii); and 

10 ‘‘(V) other means specified by the 

11 Secretary. 

12 ‘‘(ii) USE OF PART D DATA.—Not13 withstanding sections 1860D–15(d)(2)(B) 

14 and 1860D–15(f)(2), the Secretary may 

15 use data regarding drug claims submitted 

16 for purposes of section 1860D–15 that are 

17 necessary for purposes of subparagraph 

18 (A). 

19 ‘‘(3) APPLICATION.— 

20 ‘‘(A) PHYSICIAN REPORTING SYSTEM

21 RULES.—Paragraphs (5), (6), and (8) of sub22 section (k) shall apply for purposes of this sub23 section in the same manner as they apply for 

24 purposes of such subsection. 


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1 ‘‘(B) COORDINATION WITH OTHER PAY2 MENTS.—The provisions of this subsection shall 

3 not be taken into account in applying the provi4 sions of subsection (m) of this section and of 

5 section 1833(m) and any payment under such 

6 provisions shall not be taken into account in 

7 computing allowable charges under this sub8 section. 

9 ‘‘(C) LIMITATIONS ON REVIEW.—There 

10 shall be no administrative or judicial review 

11 under section 1869, section 1878, or otherwise 

12 of the determination of any incentive payment 

13 under this subsection and the payment adjust14 ment under subsection (a)(7), including the de15 termination of a meaningful EHR user under 

16 paragraph (2), a limitation under paragraph 

17 (1)(B), and the exception under subsection 

18 (a)(7)(B). 

19 ‘‘(D) POSTING ON WEBSITE.—The Sec20 retary shall post on the Internet website of the 

21 Centers for Medicare & Medicaid Services, in an 

22 easily understandable format, a list of the 

23 names, business addresses, and business phone 

24 numbers of the eligible professionals who are 

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1 propriate by the Secretary, of group practices 

2 receiving incentive payments under paragraph 

3 (1). 

4 ‘‘(4) CERTIFIED EHR TECHNOLOGY DEFINED.— 

5 For purposes of this section, the term ‘certified 

6 EHR technology’ means a qualified electronic health 

7 record (as defined in 3000(13) of the Public Health 

8 Service Act) that is certified pursuant to section 

9 3001(c)(5) of such Act as meeting standards adopt10 ed under section 3004 of such Act that are applica11 ble to the type of record involved (as determined by 

12 the Secretary, such as an ambulatory electronic 

13 health record for office-based physicians or an inpa14 tient hospital electronic health record for hospitals). 

15 ‘‘(5) DEFINITIONS.—For purposes of this sub16 section: 

17 ‘‘(A) COVERED PROFESSIONAL SERV18 ICES.—The term ‘covered professional services’ 

19 has the meaning given such term in subsection 

20 (k)(3). 

21 ‘‘(B) ELIGIBLE PROFESSIONAL.—The term 

22 ‘eligible professional’ means a physician, as de23 fined in section 1861(r). 

24 ‘‘(C) REPORTING PERIOD.—The term ‘re25 porting period’ means any period (or periods), 


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1 with respect to a payment year, as specified by 

2 the Secretary.’’. 

3 (b) INCENTIVE PAYMENT ADJUSTMENT.—Section 

4 1848(a) of the Social Security Act (42 U.S.C. 1395w– 

5 4(a)) is amended by adding at the end the following new 

6 paragraph: 

7 ‘‘(7) INCENTIVES FOR MEANINGFUL USE OF

8 CERTIFIED EHR TECHNOLOGY.— 

9 ‘‘(A) ADJUSTMENT.— 

10 ‘‘(i) IN GENERAL.—Subject to sub11 paragraphs (B) and (D), with respect to 

12 covered professional services furnished by 

13 an eligible professional during 2015 or any 

14 subsequent payment year, if the eligible 

15 professional is not a meaningful EHR user 

16 (as determined under subsection (o)(2)) for 

17 a reporting period for the year, the fee 

18 schedule amount for such services fur19 nished by such professional during the year 

20 (including the fee schedule amount for pur21 poses of determining a payment based on 

22 such amount) shall be equal to the applica23 ble percent of the fee schedule amount that 

24 would otherwise apply to such services 

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1 plication of paragraph (3) but without re2 gard to this paragraph). 

3 ‘‘(ii) APPLICABLE PERCENT.—Subject 

4 to clause (iii), for purposes of clause (i), 

5 the term ‘applicable percent’ means— 

6 ‘‘(I) for 2015, 99 percent (or, in 

7 the case of an eligible professional 

8 who was subject to the application of 

9 the payment adjustment under section 

10 1848(a)(5) for 2014, 98 percent); 

11 ‘‘(II) for 2016, 98 percent; and 

12 ‘‘(III) for 2017 and each subse13 quent year, 97 percent. 

14 ‘‘(iii) AUTHORITY TO DECREASE AP15 PLICABLE PERCENTAGE FOR 2018 AND

16 SUBSEQUENT YEARS.—For 2018 and each 

17 subsequent year, if the Secretary finds that 

18 the proportion of eligible professionals who 

19 are meaningful EHR users (as determined 

20 under subsection (o)(2)) is less than 75 

21 percent, the applicable percent shall be de22 creased by 1 percentage point from the ap23 plicable percent in the preceding year, but 

24 in no case shall the applicable percent be 

25 less than 95 percent. 


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1 ‘‘(B) SIGNIFICANT HARDSHIP EXCEP2 TION.—The Secretary may, on a case-by-case 

3 basis, exempt an eligible professional from the 

4 application of the payment adjustment under 

5 subparagraph (A) if the Secretary determines, 

6 subject to annual renewal, that compliance with 

7 the requirement for being a meaningful EHR 

8 user would result in a significant hardship, such 

9 as in the case of an eligible professional who 

10 practices in a rural area without sufficient 

11 Internet access. In no case may an eligible pro12 fessional be granted an exemption under this 

13 subparagraph for more than 5 years. 

14 ‘‘(C) APPLICATION OF PHYSICIAN REPORT15 ING SYSTEM RULES.—Paragraphs (5), (6), and 

16 (8) of subsection (k) shall apply for purposes of 

17 this paragraph in the same manner as they 

18 apply for purposes of such subsection. 

19 ‘‘(D) NON-APPLICATION TO HOSPITAL20 BASED ELIGIBLE PROFESSIONALS.—No pay21 ment adjustment may be made under subpara22 graph (A) in the case of hospital-based eligible 

23 professionals (as defined in subsection 

24 (o)(1)(C)(ii)). 


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1 ‘‘(E) DEFINITIONS.—For purposes of this 

2 paragraph: 

3 ‘‘(i) COVERED PROFESSIONAL SERV4 ICES.—The term ‘covered professional 

5 services’ has the meaning given such term 

6 in subsection (k)(3). 

7 ‘‘(ii) ELIGIBLE PROFESSIONAL.—The 

8 term ‘eligible professional’ means a physi9 cian, as defined in section 1861(r). 

10 ‘‘(iii) REPORTING PERIOD.—The term 

11 ‘reporting period’ means, with respect to a 

12 year, a period specified by the Secretary.’’. 

13 (c) APPLICATION TO CERTAIN MA-AFFILIATED ELI14 GIBLE PROFESSIONALS.—Section 1853 of the Social Secu15 rity Act (42 U.S.C. 1395w–23) is amended by adding at 

16 the end the following new subsection: 

17 ‘‘(l) APPLICATION OF ELIGIBLE PROFESSIONAL IN18 CENTIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOP19 TION AND MEANINGFUL USE OF CERTIFIED EHR TECH20 NOLOGY.— 

21 ‘‘(1) IN GENERAL.—Subject to paragraphs (3) 

22 and (4), in the case of a qualifying MA organization, 

23 the provisions of sections 1848(o) and 1848(a)(7) 

24 shall apply with respect to eligible professionals de25 scribed in paragraph (2) of the organization who the 


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1 organization attests under paragraph (6) to be 

2 meaningful EHR users in a similar manner as they 

3 apply to eligible professionals under such sections. 

4 Incentive payments under paragraph (3) shall be 

5 made to and payment adjustments under paragraph 

6 (4) shall apply to such qualifying organizations. 

7 ‘‘(2) ELIGIBLE PROFESSIONAL DESCRIBED.— 

8 With respect to a qualifying MA organization, an eli9 gible professional described in this paragraph is an 

10 eligible professional (as defined for purposes of sec11 tion 1848(o)) who— 

12 ‘‘(A)(i) is employed by the organization; or 

13 ‘‘(ii)(I) is employed by, or is a partner of, 

14 an entity that through contract with the organi15 zation furnishes at least 80 percent of the enti16 ty’s patient care services to enrollees of such or17 ganization; and 

18 ‘‘(II) furnishes at least 75 percent of the 

19 professional services of the eligible professional 

20 to enrollees of the organization; and 

21 ‘‘(B) furnishes, on average, at least 20 

22 hours per week of patient care services. 

23 ‘‘(3) ELIGIBLE PROFESSIONAL INCENTIVE PAY24 MENTS.— 


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1 ‘‘(A) IN GENERAL.—In applying section 

2 1848(o) under paragraph (1), instead of the ad3 ditional payment amount under section 

4 1848(o)(1)(A) and subject to subparagraph 

5 (B), the Secretary may substitute an amount 

6 determined by the Secretary to the extent fea7 sible and practical to be similar to the esti8 mated amount in the aggregate that would be 

9 payable if payment for services furnished by 

10 such professionals was payable under part B in11 stead of this part. 

12 ‘‘(B) AVOIDING DUPLICATION OF PAY13 MENTS.— 

14 ‘‘(i) IN GENERAL.—If an eligible pro15 fessional described in paragraph (2) is eli16 gible for the maximum incentive payment 

17 under section 1848(o)(1)(A) for the same 

18 payment period, the payment incentive 

19 shall be made only under such section and 

20 not under this subsection. 

21 ‘‘(ii) METHODS.—In the case of an el22 igible professional described in paragraph 

23 (2) who is eligible for an incentive payment 

24 under section 1848(o)(1)(A) but is not de25 scribed in clause (i) for the same payment 


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1 period, the Secretary shall develop a proc2 ess— 

3 ‘‘(I) to ensure that duplicate pay4 ments are not made with respect to 

5 an eligible professional both under 

6 this subsection and under section 

7 1848(o)(1)(A); and 

8 ‘‘(II) to collect data from Medi9 care Advantage organizations to en10 sure against such duplicate payments. 

11 ‘‘(C) FIXED SCHEDULE FOR APPLICATION

12 OF LIMITATION ON INCENTIVE PAYMENTS FOR

13 ALL ELIGIBLE PROFESSIONALS.—In applying 

14 section 1848(o)(1)(B)(ii) under subparagraph 

15 (A), in accordance with rules specified by the 

16 Secretary, a qualifying MA organization shall 

17 specify a year (not earlier than 2011) that shall 

18 be treated as the first payment year for all eli19 gible professionals with respect to such organi20 zation. 

21 ‘‘(D) CAP FOR ECONOMIES OF SCALE.—In 

22 no case may an incentive payment be made 

23 under this subsection, including under subpara24 graph (A), to a qualifying MA organization with 


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1 respect to more than 5,000 eligible profes2 sionals of the organization. 

3 ‘‘(4) PAYMENT ADJUSTMENT.— 

4 ‘‘(A) IN GENERAL.—In applying section 

5 1848(a)(7) under paragraph (1), instead of the 

6 payment adjustment being an applicable per7 cent of the fee schedule amount for a year 

8 under such section, subject to subparagraph 

9 (D), the payment adjustment under paragraph 

10 (1) shall be equal to the percent specified in 

11 subparagraph (B) for such year of the payment 

12 amount otherwise provided under this section 

13 for such year. 

14 ‘‘(B) SPECIFIED PERCENT.—The percent 

15 specified under this subparagraph for a year is 

16 100 percent minus a number of percentage 

17 points equal to the product of— 

18 ‘‘(i) a percentage equal to 100 percent 

19 reduced by the applicable percent (under 

20 section 1848(a)(7)(A)(ii)) for the year; and 

21 ‘‘(ii) a percentage equal to the Sec22 retary’s estimate of the proportion for the 

23 year, of the expenditures under parts A 

24 and B that are not attributable to this 


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1 part, that are attributable to expenditures 

2 for physicians’ services. 

3 ‘‘(C) APPLICATION OF PAYMENT ADJUST4 MENT.—In the case that a qualifying MA orga5 nization attests that not all eligible profes6 sionals of the organization are meaningful EHR 

7 users with respect to a year, the Secretary shall 

8 apply the payment adjustment under this para9 graph based on the proportion of all eligible 

10 professionals of the organization that are not 

11 meaningful EHR users for such year. If the 

12 number of eligible professionals of the organiza13 tion that are not meaningful EHR users for 

14 such year exceeds 5,000, such number shall be 

15 reduced to 5,000 for purposes of determining 

16 the proportion under the preceding sentence. 

17 ‘‘(5) QUALIFYING MA ORGANIZATION DE18 FINED.—In this subsection and subsection (m), the 

19 term ‘qualifying MA organization’ means a Medicare 

20 Advantage organization that is organized as a health 

21 maintenance organization (as defined in section 

22 2791(b)(3) of the Public Health Service Act). 

23 ‘‘(6) MEANINGFUL EHR USER ATTESTATION.— 

24 For purposes of this subsection and subsection (m), 

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1 tation, in a form and manner specified by the Sec2 retary which may include the submission of such at3 testation as part of submission of the initial bid 

4 under section 1854(a)(1)(A)(iv), identifying— 

5 ‘‘(A) whether each eligible professional de6 scribed in paragraph (2), with respect to such 

7 organization is a meaningful EHR user (as de8 fined in section 1848(o)(2)) for a year specified 

9 by the Secretary; and 

10 ‘‘(B) whether each eligible hospital de11 scribed in subsection (m)(1), with respect to 

12 such organization, is a meaningful EHR user 

13 (as defined in section 1886(n)(3)) for an appli14 cable period specified by the Secretary. 

15 ‘‘(7) POSTING ON WEBSITE.—The Secretary 

16 shall post on the Internet website of the Centers for 

17 Medicare & Medicaid Services, in an easily under18 standable format, a list of the names, business ad19 dresses, and business phone numbers of— 

20 ‘‘(A) each qualifying MA organization re21 ceiving an incentive payment under this sub22 section for eligible professionals of the organiza23 tion; and 


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1 ‘‘(B) the eligible professionals of such or2 ganization for which such incentive payment is 

3 based.’’. 

4 (d) CONFORMING AMENDMENTS.—Section 1853 of 

5 the Social Security Act (42 U.S.C. 1395w–23) is amend6 ed— 

7 (1) in subsection (a)(1)(A), by striking ‘‘and 

8 (i)’’ and inserting ‘‘(i), and (l)’’; 

9 (2) in subsection (c)— 

10 (A) in paragraph (1)(D)(i), by striking 

11 ‘‘section 1886(h)’’ and inserting ‘‘sections 

12 1848(o) and 1886(h)’’; and 

13 (B) in paragraph (6)(A), by inserting after 

14 ‘‘under part B,’’ the following: ‘‘excluding ex15 penditures attributable to subsections (a)(7) 

16 and (o) of section 1848,’’; and 

17 (3) in subsection (f), by inserting ‘‘and for pay18 ments under subsection (l)’’ after ‘‘with the organi19 zation’’. 

20 (e) CONFORMING AMENDMENTS TO E-PRE21 SCRIBING.— 

22 (1) Section 1848(a)(5)(A) of the Social Security 

23 Act (42 U.S.C. 1395w–4(a)(5)(A)) is amended— 


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1 (A) in clause (i), by striking ‘‘or any sub2 sequent year’’ and inserting ‘‘, 2013, or 2014’’; 

3 and 

4 (B) in clause (ii), by striking ‘‘and each 

5 subsequent year’’. 

6 (2) Section 1848(m)(2) of such Act (42 U.S.C. 

7 1395w–4(m)(2)) is amended— 

8 (A) in subparagraph (A), by striking ‘‘For 

9 2009’’ and inserting ‘‘Subject to subparagraph 

10 (D), for 2009’’; and 

11 (B) by adding at the end the following new 

12 subparagraph: 

13 ‘‘(D) LIMITATION WITH RESPECT TO EHR

14 INCENTIVE PAYMENTS.—The provisions of this 

15 paragraph shall not apply to an eligible profes16 sional (or, in the case of a group practice under 

17 paragraph (3)(C), to the group practice) if, for 

18 the reporting period the eligible professional (or 

19 group practice) receives an incentive payment 

20 under subsection (o)(1)(A) with respect to a 

21 certified EHR technology (as defined in sub22 section (o)(4)) that has the capability of elec23 tronic prescribing.’’. 

24 (f) PROVIDING ASSISTANCE TO ELIGIBLE PROFES25 SIONALS AND CERTAIN HOSPITALS.— 


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

2 Human Services shall provide assistance to eligible 

3 professionals (as defined in section 1848(o)(5), as 

4 added by subsection (a)), Medicaid providers (as de5 fined in section 1903(t)(2) of such Act, as added by 

6 section 4211(a)), and eligible hospitals (as defined in 

7 section 1886(n)(6)(A) of such Act, as added by sec8 tion 4202(a)) located in rural or other medically un9 derserved areas to successfully choose, implement, 

10 and use certified EHR technology (as defined in sec11 tion 1848(o)(4) of the Social Security Act, as added 

12 by section 4201(a)). 

13 (2) USE OF ENTITIES WITH EXPERTISE.—To 

14 the extent practicable, the Secretary shall provide 

15 such assistance through entities that have expertise 

16 in the choice, implementation, and use of such cer17 tified EHR technology. 

18 SEC. 4202. INCENTIVES FOR HOSPITALS. 

19 (a) INCENTIVE PAYMENT.—Section 1886 of the So20 cial Security Act (42 U.S.C. 1395ww) is amended by add21 ing at the end the following new subsection: 

22 ‘‘(n) INCENTIVES FOR ADOPTION AND MEANINGFUL

23 USE OF CERTIFIED EHR TECHNOLOGY.— 

24 ‘‘(1) IN GENERAL.—Subject to the succeeding 

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1 tient hospital services furnished by an eligible hos2 pital during a payment year (as defined in para3 graph (2)(G)), if the eligible hospital is a meaningful 

4 EHR user (as determined under paragraph (3)) for 

5 the reporting period with respect to such year, in ad6 dition to the amount otherwise paid under this sec7 tion, there also shall be paid to the eligible hospital, 

8 from the Federal Hospital Insurance Trust Fund es9 tablished under section 1817, an amount equal to 

10 the applicable amount specified in paragraph (2)(A) 

11 for the hospital for such payment year. 

12 ‘‘(2) PAYMENT AMOUNT.— 

13 ‘‘(A) IN GENERAL.—Subject to the suc14 ceeding subparagraphs of this paragraph, the 

15 applicable amount specified in this subpara16 graph for an eligible hospital for a payment 

17 year is equal to the product of the following: 

18 ‘‘(i) INITIAL AMOUNT.—The sum of— 

19 ‘‘(I) the base amount specified in 

20 subparagraph (B); plus 

21 ‘‘(II) the discharge related 

22 amount specified in subparagraph (C) 

23 for a 12-month period selected by the 

24 Secretary with respect to such pay25 ment year. 


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1 ‘‘(ii) MEDICARE SHARE.—The Medi2 care share as specified in subparagraph 

3 (D) for the hospital for a period selected 

4 by the Secretary with respect to such pay5 ment year. 

6 ‘‘(iii) TRANSITION FACTOR.—The 

7 transition factor specified in subparagraph 

8 (E) for the hospital for the payment year. 

9 ‘‘(B) BASE AMOUNT.—The base amount 

10 specified in this subparagraph is $2,000,000. 

11 ‘‘(C) DISCHARGE RELATED AMOUNT.—The 

12 discharge related amount specified in this sub13 paragraph for a 12-month period selected by 

14 the Secretary shall be determined as the sum of 

15 the amount, based upon total discharges (re16 gardless of any source of payment) for the pe17 riod, for each discharge up to the 23,000th dis18 charge as follows: 

19 ‘‘(i) For the 1,150th through the 

20 9,200nd discharge, $200. 

21 ‘‘(ii) For the 9,201st through the 

22 13,800th discharge, 50 percent of the 

23 amount specified in clause (i). 


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1 ‘‘(iii) For the 13,801st through the 

2 23,000th discharge, 30 percent of the 

3 amount specified in clause (i). 

4 ‘‘(D) MEDICARE SHARE.—The Medicare 

5 share specified under this subparagraph for a 

6 hospital for a period selected by the Secretary 

7 for a payment year is equal to the fraction— 

8 ‘‘(i) the numerator of which is the 

9 sum (for such period and with respect to 

10 the hospital) of— 

11 ‘‘(I) the number of inpatient-bed12 days (as established by the Secretary) 

13 which are attributable to individuals 

14 with respect to whom payment may be 

15 made under part A; and 

16 ‘‘(II) the number of inpatient17 bed-days (as so established) which are 

18 attributable to individuals who are en19 rolled with a Medicare Advantage or20 ganization under part C; and 

21 ‘‘(ii) the denominator of which is the 

22 product of— 

23 ‘‘(I) the total number of inpa24 tient-bed-days with respect to the hos25 pital during such period; and 


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1 ‘‘(II) the total amount of the hos2 pital’s charges during such period, not 

3 including any charges that are attrib4 utable to charity care (as such term is 

5 used for purposes of hospital cost re6 porting under this title), divided by 

7 the total amount of the hospital’s 

8 charges during such period. 

9 Insofar as the Secretary determines that data 

10 are not available on charity care necessary to 

11 calculate the portion of the formula specified in 

12 clause (ii)(II), the Secretary shall use data on 

13 uncompensated care and may adjust such data 

14 so as to be an appropriate proxy for charity 

15 care including a downward adjustment to elimi16 nate bad debt data from uncompensated care 

17 data. In the absence of the data necessary, with 

18 respect to a hospital, for the Secretary to com19 pute the amount described in clause (ii)(II), the 

20 amount under such clause shall be deemed to 

21 be 1. In the absence of data, with respect to a 

22 hospital, necessary to compute the amount de23 scribed in clause (i)(II), the amount under such 

24 clause shall be deemed to be 0. 

25 ‘‘(E) TRANSITION FACTOR SPECIFIED.— 


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1 ‘‘(i) IN GENERAL.—Subject to clause 

2 (ii), the transition factor specified in this 

3 subparagraph for an eligible hospital for a 

4 payment year is as follows: 

5 ‘‘(I) For the first payment year 

6 for such hospital, 1. 

7 ‘‘(II) For the second payment 

year for such hospital, 3 8 ⁄4. 

9 ‘‘(III) For the third payment 

year for such hospital, 1 10 ⁄2. 

11 ‘‘(IV) For the fourth payment 

year for such hospital, 1 12 ⁄4. 

13 ‘‘(V) For any succeeding pay14 ment year for such hospital, 0. 

15 ‘‘(ii) PHASE DOWN FOR ELIGIBLE

16 HOSPITALS FIRST ADOPTING EHR AFTER

17 2013.—If the first payment year for an eli18 gible hospital is after 2013, then the tran19 sition factor specified in this subparagraph 

20 for a payment year for such hospital is the 

21 same as the amount specified in clause (i) 

22 for such payment year for an eligible hos23 pital for which the first payment year is 

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1 tion factor specified in this subparagraph 

2 for such hospital and for such year and 

3 any subsequent year shall be 0. 

4 ‘‘(F) FORM OF PAYMENT.—The payment 

5 under this subsection for a payment year may 

6 be in the form of a single consolidated payment 

7 or in the form of such periodic installments as 

8 the Secretary may specify. 

9 ‘‘(G) PAYMENT YEAR DEFINED.— 

10 ‘‘(i) IN GENERAL.—For purposes of 

11 this subsection, the term ‘payment year’ 

12 means a fiscal year beginning with fiscal 

13 year 2011. 

14 ‘‘(ii) FIRST, SECOND, ETC. PAYMENT

15 YEAR.—The term ‘first payment year’ 

16 means, with respect to inpatient hospital 

17 services furnished by an eligible hospital, 

18 the first fiscal year for which an incentive 

19 payment is made for such services under 

20 this subsection. The terms ‘second pay21 ment year’, ‘third payment year’, and 

22 ‘fourth payment year’ mean, with respect 

23 to an eligible hospital, each successive year 

24 immediately following the first payment 

25 year for that hospital. 


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1 ‘‘(3) MEANINGFUL EHR USER.— 

2 ‘‘(A) IN GENERAL.—For purposes of para3 graph (1), an eligible hospital shall be treated 

4 as a meaningful EHR user for a reporting pe5 riod for a payment year (or, for purposes of 

6 subsection (b)(3)(B)(ix), for a reporting period 

7 under such subsection for a fiscal year) if each 

8 of the following requirements are met: 

9 ‘‘(i) MEANINGFUL USE OF CERTIFIED

10 EHR TECHNOLOGY.—The eligible hospital 

11 demonstrates to the satisfaction of the Sec12 retary, in accordance with subparagraph 

13 (C)(i), that during such period the hospital 

14 is using certified EHR technology in a 

15 meaningful manner. 

16 ‘‘(ii) INFORMATION EXCHANGE.—The 

17 eligible hospital demonstrates to the satis18 faction of the Secretary, in accordance 

19 with subparagraph (C)(i), that during such 

20 period such certified EHR technology is 

21 connected in a manner that provides, in 

22 accordance with law and standards appli23 cable to the exchange of information, for 

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1 tion to improve the quality of health care, 

2 such as promoting care coordination. 

3 ‘‘(iii) REPORTING ON MEASURES

4 USING EHR.—Subject to subparagraph 

5 (B)(ii) and using such certified EHR tech6 nology, the eligible hospital submits infor7 mation for such period, in a form and 

8 manner specified by the Secretary, on such 

9 clinical quality measures and such other 

10 measures as selected by the Secretary 

11 under subparagraph (B)(i). 

12 The Secretary shall seek to improve the use of 

13 electronic health records and health care quality 

14 over time by requiring more stringent measures 

15 of meaningful use selected under this para16 graph. 

17 ‘‘(B) REPORTING ON MEASURES.— 

18 ‘‘(i) SELECTION.—The Secretary shall 

19 select measures for purposes of subpara20 graph (A)(iii) but only consistent with the 

21 following: 

22 ‘‘(I) The Secretary shall provide 

23 preference to clinical quality measures 

24 that have been selected for purposes 

25 of applying subsection (b)(3)(B)(viii) 


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1 or that have been endorsed by the en2 tity with a contract with the Secretary 

3 under section 1890(a). 

4 ‘‘(II) Prior to any measure (other 

5 than a clinical quality measure that 

6 has been selected for purposes of ap7 plying subsection (b)(3)(B)(viii)) 

8 being selected under this subpara9 graph, the Secretary shall publish in 

10 the Federal Register such measure 

11 and provide for a period of public 

12 comment on such measure. 

13 ‘‘(ii) LIMITATIONS.—The Secretary 

14 may not require the electronic reporting of 

15 information on clinical quality measures 

16 under subparagraph (A)(iii) unless the 

17 Secretary has the capacity to accept the in18 formation electronically, which may be on 

19 a pilot basis. 

20 ‘‘(iii) COORDINATION OF REPORTING

21 OF INFORMATION.—In selecting such 

22 measures, and in establishing the form and 

23 manner for reporting measures under sub24 paragraph (A)(iii), the Secretary shall seek 

25 to avoid redundant or duplicative reporting 


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1 with reporting otherwise required, includ2 ing reporting under subsection 

3 (b)(3)(B)(viii). 

4 ‘‘(C) DEMONSTRATION OF MEANINGFUL

5 USE OF CERTIFIED EHR TECHNOLOGY AND IN6 FORMATION EXCHANGE.— 

7 ‘‘(i) IN GENERAL.—A hospital may 

8 satisfy the demonstration requirement of 

9 clauses (i) and (ii) of subparagraph (A) 

10 through means specified by the Secretary, 

11 which may include— 

12 ‘‘(I) an attestation; 

13 ‘‘(II) the submission of claims 

14 with appropriate coding (such as a 

15 code indicating that inpatient care 

16 was documented using certified EHR 

17 technology); 

18 ‘‘(III) a survey response; 

19 ‘‘(IV) reporting under subpara20 graph (A)(iii); and 

21 ‘‘(V) other means specified by the 

22 Secretary. 

23 ‘‘(ii) USE OF PART D DATA.—Not24 withstanding sections 1860D–15(d)(2)(B) 

25 and 1860D–15(f)(2), the Secretary may 


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1 use data regarding drug claims submitted 

2 for purposes of section 1860D–15 that are 

3 necessary for purposes of subparagraph 

4 (A). 

5 ‘‘(4) APPLICATION.— 

6 ‘‘(A) LIMITATIONS ON REVIEW.—There 

7 shall be no administrative or judicial review 

8 under section 1869, section 1878, or otherwise 

9 of the determination of any incentive payment 

10 under this subsection and the payment adjust11 ment under subsection (b)(3)(B)(ix), including 

12 the determination of a meaningful EHR user 

13 under paragraph (3), determination of meas14 ures applicable to services furnished by eligible 

15 hospitals under this subsection, and the excep16 tion under subsection (b)(3)(B)(ix)(II). 

17 ‘‘(B) POSTING ON WEBSITE.—The Sec18 retary shall post on the Internet website of the 

19 Centers for Medicare & Medicaid Services, in an 

20 easily understandable format, a list of the 

21 names of the eligible hospitals that are mean22 ingful EHR users under this subsection or sub23 section (b)(3)(B)(ix) and other relevant data as 

24 determined appropriate by the Secretary. The 

25 Secretary shall ensure that a hospital has the 


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1 opportunity to review the other relevant data 

2 that are to be made public with respect to the 

3 hospital prior to such data being made public. 

4 ‘‘(5) CERTIFIED EHR TECHNOLOGY DEFINED.— 

5 The term ‘certified EHR technology’ has the mean6 ing given such term in section 1848(o)(4). 

7 ‘‘(6) DEFINITIONS.—For purposes of this sub8 section: 

9 ‘‘(A) ELIGIBLE HOSPITAL.—The term ‘eli10 gible hospital’ means— 

11 ‘‘(i) a subsection (d) hospital; and 

12 ‘‘(ii) a critical access hospital (as de13 fined in section 1861(mm)(1)). 

14 ‘‘(B) REPORTING PERIOD.—The term ‘re15 porting period’ means any period (or periods), 

16 with respect to a payment year, as specified by 

17 the Secretary.’’. 

18 (b) INCENTIVE MARKET BASKET ADJUSTMENT.— 

19 (1) IN GENERAL.—Section 1886(b)(3)(B) of 

20 the Social Security Act (42 U.S.C. 

21 1395ww(b)(3)(B)) is amended— 

22 (A) in clause (viii)(I), by inserting ‘‘(or, 

23 beginning with fiscal year 2016, by one-quar24 ter)’’ after ‘‘2.0 percentage points’’; and 


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1 (B) by adding at the end the following new 

2 clause: 

3 ‘‘(ix)(I) For purposes of clause (i) for fiscal year 

4 2015 and each subsequent fiscal year, in the case of an 

5 eligible hospital (as defined in subsection (n)(6)(A)) that 

6 is not a meaningful EHR user (as defined in subsection 

7 (n)(3)) for the reporting period for such fiscal year, three8 quarters of the applicable percentage increase otherwise 

9 applicable under clause (i) for such fiscal year shall be 

reduced by 331⁄3 percent for fiscal year 2015, 662 10 ⁄3 per11 cent for fiscal year 2016, and 100 percent for fiscal year 

12 2017 and each subsequent fiscal year. Such reduction 

13 shall apply only with respect to the fiscal year involved 

14 and the Secretary shall not take into account such reduc15 tion in computing the applicable percentage increase under 

16 clause (i) for a subsequent fiscal year. 

17 ‘‘(II) The Secretary may, on a case-by-case basis, ex18 empt a subsection (d) hospital from the application of sub19 clause (I) with respect to a fiscal year if the Secretary 

20 determines, subject to annual renewal, that requiring such 

21 hospital to be a meaningful EHR user during such fiscal 

22 year would result in a significant hardship, such as in the 

23 case of a hospital in a rural area without sufficient Inter24 net access. In no case may a hospital be granted an ex25 emption under this subclause for more than 5 years. 


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1 ‘‘(III) For fiscal year 2015 and each subsequent fis2 cal year, a State in which hospitals are paid for services 

3 under section 1814(b)(3) shall adjust the payments to 

4 each subsection (d) hospital in the State that is not a 

5 meaningful EHR user (as defined in subsection (n)(3)) 

6 in a manner that is designed to result in an aggregate 

7 reduction in payments to hospitals in the State that is 

8 equivalent to the aggregate reduction that would have oc9 curred if payments had been reduced to each subsection 

10 (d) hospital in the State in a manner comparable to the 

11 reduction under the previous provisions of this clause. The 

12 State shall report to the Secretary the methodology it will 

13 use to make the payment adjustment under the previous 

14 sentence. 

15 ‘‘(IV) For purposes of this clause, the term ‘reporting 

16 period’ means, with respect to a fiscal year, any period 

17 (or periods), with respect to the fiscal year, as specified 

18 by the Secretary.’’. 

19 (2) CRITICAL ACCESS HOSPITALS.—Section 

20 1814(l) of the Social Security Act (42 U.S.C. 

21 1395f(l)) is amended— 

22 (A) in subparagraph (1), by striking 

23 ‘‘paragraph (2)’’ and inserting ‘‘paragraphs (2) 

24 and (3)’’; and 


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1 (B) by adding at the end the following new 

2 paragraph: 

3 ‘‘(3)(A) Subject to subparagraph (B), for fiscal year 

4 2015 and each subsequent fiscal year, in the case of a 

5 critical access hospital that is not a meaningful EHR user 

6 (as defined in section 1886(n)(3)) for the reporting period 

7 for such fiscal year, paragraph (1) shall be applied by sub8 stituting the applicable percent under subparagraph (C) 

9 for the percent described in such paragraph (1). 

10 ‘‘(B) The Secretary may, on a case-by-case basis, ex11 empt a critical access hospital from the application of sub12 paragraph (A) with respect to a fiscal year if the Secretary 

13 determines, subject to annual renewal, that requiring such 

14 hospital to be a meaningful EHR user during such fiscal 

15 year would result in a significant hardship, such as in the 

16 case of a hospital in a rural area without sufficient Inter17 net access. In no case may a hospital be granted an ex18 emption under this subparagraph for more than 5 years. 

19 ‘‘(C) The percent described in this subparagraph is— 

20 ‘‘(i) for fiscal year 2015, 100.66 percent; 

21 ‘‘(ii) for fiscal year 2016, 100.33 percent; and 

22 ‘‘(iii) for fiscal year 2017 and each subsequent 

23 fiscal year, 100 percent.’’. 

24 (c) APPLICATION TO CERTAIN MA-AFFILIATED ELI25 GIBLE HOSPITALS.—Section 1853 of the Social Security 


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1 Act (42 U.S.C. 1395w-23), as amended by section 

2 4201(c), is further amended by adding at the end the fol3 lowing new subsection: 

4 ‘‘(m) APPLICATION OF ELIGIBLE HOSPITAL INCEN5 TIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOPTION

6 AND MEANINGFUL USE OF CERTIFIED EHR TECH7 NOLOGY.— 

8 ‘‘(1) APPLICATION.—Subject to paragraphs (3) 

9 and (4), in the case of a qualifying MA organization, 

10 the provisions of sections 1814(l)(3), 1886(n), and 

11 1886(b)(3)(B)(ix) shall apply with respect to eligible 

12 hospitals described in paragraph (2) of the organiza13 tion which the organization attests under subsection 

14 (l)(6) to be meaningful EHR users in a similar man15 ner as they apply to eligible hospitals under such 

16 sections. Incentive payments under paragraph (3) 

17 shall be made to and payment adjustments under 

18 paragraph (4) shall apply to such qualifying organi19 zations. 

20 ‘‘(2) ELIGIBLE HOSPITAL DESCRIBED.—With 

21 respect to a qualifying MA organization, an eligible 

22 hospital described in this paragraph is an eligible 

23 hospital (as defined in section 1886(n)(6)(A)) that is 

24 under common corporate governance with such orgaVerDate Nov 24 2008 02:17 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00690 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 nization and serves individuals enrolled under an 

2 MA plan offered by such organization. 

3 ‘‘(3) ELIGIBLE HOSPITAL INCENTIVE PAY4 MENTS.— 

5 ‘‘(A) IN GENERAL.—In applying section 

6 1886(n)(2) under paragraph (1), instead of the 

7 additional payment amount under section 

8 1886(n)(2), there shall be substituted an 

9 amount determined by the Secretary to be simi10 lar to the estimated amount in the aggregate 

11 that would be payable if payment for services 

12 furnished by such hospitals was payable under 

13 part A instead of this part. In implementing the 

14 previous sentence, the Secretary— 

15 ‘‘(i) shall, insofar as data to deter16 mine the discharge related amount under 

17 section 1886(n)(2)(C) for an eligible hos18 pital are not available to the Secretary, use 

19 such alternative data and methodology to 

20 estimate such discharge related amount as 

21 the Secretary determines appropriate; and 

22 ‘‘(ii) shall, insofar as data to deter23 mine the medicare share described in sec24 tion 1886(n)(2)(D) for an eligible hospital 

25 are not available to the Secretary, use such 


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1 alternative data and methodology to esti2 mate such share, which data and method3 ology may include use of the inpatient bed 

4 days (or discharges) with respect to an eli5 gible hospital during the appropriate pe6 riod which are attributable to both individ7 uals for whom payment may be made 

8 under part A or individuals enrolled in an 

9 MA plan under a Medicare Advantage or10 ganization under this part as a proportion 

11 of the total number of patient-bed-days (or 

12 discharges) with respect to such hospital 

13 during such period. 

14 ‘‘(B) AVOIDING DUPLICATION OF PAY15 MENTS.— 

16 ‘‘(i) IN GENERAL.—In the case of a 

17 hospital that for a payment year is an eli18 gible hospital described in paragraph (2) 

19 and for which at least one-third of their 

20 discharges (or bed-days) of Medicare pa21 tients for the year are covered under part 

22 A, payment for the payment year shall be 

23 made only under section 1886(n) and not 

24 under this subsection. 


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1 ‘‘(ii) METHODS.—In the case of a 

2 hospital that is an eligible hospital de3 scribed in paragraph (2) and also is eligi4 ble for an incentive payment under section 

5 1886(n) but is not described in clause (i) 

6 for the same payment period, the Secretary 

7 shall develop a process— 

8 ‘‘(I) to ensure that duplicate pay9 ments are not made with respect to 

10 an eligible hospital both under this 

11 subsection and under section 1886(n); 

12 and 

13 ‘‘(II) to collect data from Medi14 care Advantage organizations to en15 sure against such duplicate payments. 

16 ‘‘(4) PAYMENT ADJUSTMENT.— 

17 ‘‘(A) Subject to paragraph (3), in the case 

18 of a qualifying MA organization (as defined in 

19 section 1853(l)(5)), if, according to the attesta20 tion of the organization submitted under sub21 section (l)(6) for an applicable period, one or 

22 more eligible hospitals (as defined in section 

23 1886(n)(6)(A)) that are under common cor24 porate governance with such organization and 

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1 fered by such organization are not meaningful 

2 EHR users (as defined in section 1886(n)(3)) 

3 with respect to a period, the payment amount 

4 payable under this section for such organization 

5 for such period shall be the percent specified in 

6 subparagraph (B) for such period of the pay7 ment amount otherwise provided under this sec8 tion for such period. 

9 ‘‘(B) SPECIFIED PERCENT.—The percent 

10 specified under this subparagraph for a year is 

11 100 percent minus a number of percentage 

12 points equal to the product of— 

13 ‘‘(i) the number of the percentage 

14 point reduction effected under section 

15 1886(b)(3)(B)(ix)(I) for the period; and 

16 ‘‘(ii) the Medicare hospital expendi17 ture proportion specified in subparagraph 

18 (C) for the year. 

19 ‘‘(C) MEDICARE HOSPITAL EXPENDITURE

20 PROPORTION.—The Medicare hospital expendi21 ture proportion under this subparagraph for a 

22 year is the Secretary’s estimate of the propor23 tion, of the expenditures under parts A and B 

24 that are not attributable to this part, that are 


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1 attributable to expenditures for inpatient hos2 pital services. 

3 ‘‘(D) APPLICATION OF PAYMENT ADJUST4 MENT.—In the case that a qualifying MA orga5 nization attests that not all eligible hospitals 

6 are meaningful EHR users with respect to an 

7 applicable period, the Secretary shall apply the 

8 payment adjustment under this paragraph 

9 based on a methodology specified by the Sec10 retary, taking into account the proportion of 

11 such eligible hospitals, or discharges from such 

12 hospitals, that are not meaningful EHR users 

13 for such period. 

14 ‘‘(5) POSTING ON WEBSITE.—The Secretary 

15 shall post on the Internet website of the Centers for 

16 Medicare & Medicaid Services, in an easily under17 standable format, — 

18 ‘‘(A) a list of the names, business address19 es, and business phone numbers of each quali20 fying MA organization receiving an incentive 

21 payment under this subsection for eligible hos22 pitals described in paragraph (2); and 

23 ‘‘(B) a list of the names of the eligible hos24 pitals for which such incentive payment is 

25 based.’’. 


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1 (d) CONFORMING AMENDMENTS.— 

2 (1) Section 1814(b) of the Social Security Act 

3 (42 U.S.C. 1395f(b)) is amended— 

4 (A) in paragraph (3), in the matter pre5 ceding subparagraph (A), by inserting ‘‘, sub6 ject to section 1886(d)(3)(B)(ix)(III),’’ after 

7 ‘‘then’’; and 

8 (B) by adding at the end the following: 

9 ‘‘For purposes of applying paragraph (3), there 

10 shall be taken into account incentive payments, 

11 and payment adjustments under subsection 

12 (b)(3)(B)(ix) or (n) of section 1886.’’. 

13 (2) Section 1851(i)(1) of the Social Security 

14 Act (42 U.S.C. 1395w–21(i)(1)) is amended by 

15 striking ‘‘and 1886(h)(3)(D)’’ and inserting 

16 ‘‘1886(h)(3)(D), and 1853(m)’’. 

17 (3) Section 1853 of the Social Security Act (42 

18 U.S.C. 1395w–23), as amended by section 

19 4311(d)(1), is amended— 

20 (A) in subsection (c)— 

21 (i) in paragraph (1)(D)(i), by striking 

22 ‘‘1848(o)’’ and inserting ‘‘, 1848(o), and 

23 1886(n)’’; and 


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1 (ii) in paragraph (6)(A), by inserting 

2 ‘‘and subsections (b)(3)(B)(ix) and (n) of 

3 section 1886’’ after ‘‘section 1848’’; and 

4 (B) in subsection (f), by inserting ‘‘and 

5 subsection (m)’’ after ‘‘under subsection (l)’’. 

6 SEC. 4203. PREMIUM HOLD HARMLESS AND IMPLEMENTA7 TION FUNDING. 

8 (a) PREMIUM HOLD HARMLESS.— 

9 (1) IN GENERAL.—Section 1839(a)(1) of the 

10 Social Security Act (42 U.S.C. 1395r(a)(1)) is 

11 amended by adding at the end the following: ‘‘In ap12 plying this paragraph there shall not be taken into 

13 account additional payments under section 1848(o) 

14 and section 1853(l)(3) and the Government con15 tribution under section 1844(a)(3).’’. 

16 (2) PAYMENT.—Section 1844(a) of such Act 

17 (42 U.S.C. 1395w(a)) is amended— 

18 (A) in paragraph (2), by striking the pe19 riod at the end and inserting ‘‘; plus’’; and 

20 (B) by adding at the end the following new 

21 paragraph: 

22 ‘‘(3) a Government contribution equal to the 

23 amount of payment incentives payable under sec24 tions 1848(o) and 1853(l)(3).’’. 


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1 (b) IMPLEMENTATION FUNDING.—In addition to 

2 funds otherwise available, out of any funds in the Treas3 ury not otherwise appropriated, there are appropriated to 

4 the Secretary of Health and Human Services for the Cen5 ter for Medicare & Medicaid Services Program Manage6 ment Account, $100,000,000 for each of fiscal years 2009 

7 through 2015 and $45,000,000 for each succeeding fiscal 

8 year through fiscal year 2018, which shall be available for 

9 purposes of carrying out the provisions of (and amend10 ments made by) this part. Amounts appropriated under 

11 this subsection for a fiscal year shall be available until ex12 pended. 

13 SEC. 4204. NON-APPLICATION OF PHASED-OUT INDIRECT 

14 MEDICAL EDUCATION (IME) ADJUSTMENT 

15 FACTOR FOR FISCAL YEAR 2009. 

16 (a) IN GENERAL.—Section 412.322 of title 42, Code 

17 of Federal Regulations, shall be applied without regard to 

18 paragraph (c) of such section, and the Secretary of Health 

19 and Human Services shall recompute payments for dis20 charges occurring on or after October 1, 2008, as if such 

21 paragraph had never been in effect. 

22 (b) NO EFFECT ON SUBSEQUENT YEARS.—Nothing 

23 in subsection (a) shall be construed as having any effect 

24 on the application of paragraph (d) of section 412.322 of 

25 title 42, Code of Federal Regulations. 


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1 SEC. 4205. STUDY ON APPLICATION OF EHR PAYMENT IN2 CENTIVES FOR PROVIDERS NOT RECEIVING 

3 OTHER INCENTIVE PAYMENTS. 

4 (a) STUDY.— 

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

6 Human Services shall conduct a study to determine 

7 the extent to which and manner in which payment 

8 incentives (such as under title XVIII or XIX of the 

9 Social Security Act) and other funding for purposes 

10 of implementing and using certified EHR technology 

11 (as defined in section 1848(o)(4) of the Social Secu12 rity Act, as added by section 4311(a)) should be 

13 made available to health care providers who are re14 ceiving minimal or no payment incentives or other 

15 funding under this Act, under title XVIII or XIX of 

16 such Act, or otherwise, for such purposes. 

17 (2) DETAILS OF STUDY.—Such study shall in18 clude an examination of— 

19 (A) the adoption rates of certified EHR 

20 technology (as so defined) by such health care 

21 providers; 

22 (B) the clinical utility of such technology 

23 by such health care providers; 

24 (C) whether the services furnished by such 

25 health care providers are appropriate for or 

26 would benefit from the use of such technology; 


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1 (D) the extent to which such health care 

2 providers work in settings that might otherwise 

3 receive an incentive payment or other funding 

4 under this Act, title XVIII or XIX of the Social 

5 Security Act, or otherwise; 

6 (E) the potential costs and the potential 

7 benefits of making payment incentives and 

8 other funding available to such health care pro9 viders; and 

10 (F) any other issues the Secretary deems 

11 to be appropriate. 

12 (b) REPORT.—Not later than June 30, 2010, the 

13 Secretary shall submit to Congress a report on the find14 ings and conclusions of the study conducted under sub15 section (a). 

16 SEC. 4206. STUDY ON AVAILABILITY OF OPEN SOURCE 

17 HEALTH INFORMATION TECHNOLOGY SYS18 TEMS. 

19 (a) IN GENERAL.— 

20 (1) STUDY.—The Secretary of Health and 

21 Human Services shall, in consultation with the 

22 Under Secretary for Health of the Veterans Health 

23 Administration, the Director of the Indian Health 

24 Service, the Secretary of Defense, the Director of 

25 the Agency for Healthcare Research and Quality, 


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1 the Administrator of the Health Resources and Serv2 ices Administration, and the Chairman of the Fed3 eral Communications Commission, conduct a study 

4 on— 

5 (A) the current availability of open source 

6 health information technology systems to Fed7 eral safety net providers (including small, rural 

8 providers); 

9 (B) the total cost of ownership of such sys10 tems in comparison to the cost of proprietary 

11 commercial products available; 

12 (C) the ability of such systems to respond 

13 to the needs of, and be applied to, various pop14 ulations (including children and disabled indi15 viduals); and 

16 (D) the capacity of such systems to facili17 tate interoperability. 

18 (2) CONSIDERATIONS.—In conducting the study 

19 under paragraph (1), the Secretary of Health and 

20 Human Services shall take into account the cir21 cumstances of smaller health care providers, health 

22 care providers located in rural or other medically un23 derserved areas, and safety net providers that deliver 

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AMDT. NO. 98 

1 viduals, Medicaid beneficiaries, SCHIP beneficiaries, 

2 and other vulnerable individuals. 

3 (b) REPORT.—Not later than October 1, 2010, the 

4 Secretary of Health and Human Services shall submit to 

5 Congress a report on the findings and the conclusions of 

6 the study conducted under subsection (a), together with 

7 recommendations for such legislation and administrative 

8 action as the Secretary determines appropriate. 

9 Subtitle B—Medicaid Funding 

10 SEC. 4211. MEDICAID PROVIDER EHR ADOPTION AND OPER11 ATION PAYMENTS; IMPLEMENTATION FUND12 ING. 

13 (a) IN GENERAL.—Section 1903 of the Social Secu14 rity Act (42 U.S.C. 1396b) is amended— 

15 (1) in subsection (a)(3)— 

16 (A) by striking ‘‘and’’ at the end of sub17 paragraph (D); 

18 (B) by striking ‘‘plus’’ at the end of sub19 paragraph (E) and inserting ‘‘and’’; and 

20 (C) by adding at the end the following new 

21 subparagraph: 

22 ‘‘(F)(i) 100 percent of so much of the 

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1 nance and training that is for, or is necessary 

2 for the adoption and operation of, such tech3 nology) by Medicaid providers described in sub4 section (t)(1); and 

5 ‘‘(ii) 90 percent of so much of the sums ex6 pended during such quarter as are attributable 

7 to payments for reasonable administrative ex8 penses related to the administration of pay9 ments described in clause (i) if the State meets 

10 the condition described in subsection (t)(9); 

11 plus’’; and 

12 (2) by inserting after subsection (s) the fol13 lowing new subsection: 

14 ‘‘(t)(1)(A) For purposes of subsection (a)(3)(F), the 

15 payments for certified EHR technology (and support serv16 ices including maintenance that is for, or is necessary for 

17 the operation of, such technology) by Medicaid providers 

18 described in this paragraph are payments made by the 

19 State in accordance with this subsection of the applicable 

20 percent of the net allowable costs of Medicaid providers 

21 (as defined in paragraph (2)) for such technology (and 

22 support services). 

23 ‘‘(B) For purposes of subparagraph (A), the term 

24 ‘applicable percent’ means— 


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1 ‘‘(i) in the case of a Medicaid provider de2 scribed in paragraph (2)(A), 85 percent; 

3 ‘‘(ii) in the case of a Medicaid provider de4 scribed in clause (i) or (ii) of paragraph (2)(B), 100 

5 percent; and 

6 ‘‘(iii) in the case of a Medicaid provider de7 scribed in clause (iii) of paragraph (2)(B), a percent 

8 specified by the Secretary, but not less than 85 per9 cent. 

10 ‘‘(2) In this subsection and subsection (a)(3)(F), the 

11 term ‘Medicaid provider’ means— 

12 ‘‘(A) an eligible professional (as defined in 

13 paragraph (3)(B)) who is not hospital-based and has 

14 at least 30 percent of the professional’s patient vol15 ume (as estimated in accordance with standards es16 tablished by the Secretary) attributable to individ17 uals who are receiving medical assistance under this 

18 title; and 

19 ‘‘(B)(i) a children’s hospital, (ii) an acute-care 

20 hospital that is not described in clause (i) and that 

21 has at least 10 percent of the hospital’s patient vol22 ume (as estimated in accordance with standards es23 tablished by the Secretary) attributable to individ24 uals who are receiving medical assistance under this 

25 title, or (iii) a Federally-qualified health center or 


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1 rural health clinic that has at least 30 percent of the 

2 center’s or clinic’s patient volume (as estimated in 

3 accordance with standards established by the Sec4 retary) attributable to individuals who are receiving 

5 medical assistance under this title. 

6 An eligible professional shall not qualify as a Medicaid 

7 provider under this subsection unless the professional has 

8 waived, in a manner specified by the Secretary, any right 

9 to payment under section 1848(o) with respect to the 

10 adoption or support of certified EHR technology by the 

11 eligible professional. In applying clauses (ii) and (iii) of 

12 subparagraph (B), the standards established by the Sec13 retary for patient volume shall include individuals enrolled 

14 in a Medicaid managed care plan (under section 1903(m) 

15 or section 1932). 

16 ‘‘(3) In this subsection and subsection (a)(3)(F): 

17 ‘‘(A) The term ‘certified EHR technology’ 

18 means a qualified electronic health record (as de19 fined in 3000(13) of the Public Health Service Act) 

20 that is certified pursuant to section 3001(c)(5) of 

21 such Act as meeting standards adopted under sec22 tion 3004 of such Act that are applicable to the type 

23 of record involved (as determined by the Secretary, 

24 such as an ambulatory electronic health record for 


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1 office-based physicians or an inpatient hospital elec2 tronic health record for hospitals). 

3 ‘‘(B) The term ‘eligible professional’ means a 

4 physician as defined in paragraphs (1) and (2) of 

5 section 1861(r), and includes a nurse mid-wife and 

6 a nurse practitioner. 

7 ‘‘(C) The term ‘hospital-based’ means, with re8 spect to an eligible professional, a professional (such 

9 as a pathologist, anesthesiologist, or emergency phy10 sician) who furnishes substantially all of the individ11 ual’s professional services in a hospital setting 

12 (whether inpatient or outpatient) and through the 

13 use of the facilities and equipment, including quali14 fied electronic health records, of the hospital. 

15 ‘‘(4)(A) The term ‘allowable costs’ means, with re16 spect to certified EHR technology of a Medicaid provider, 

17 costs of such technology (and support services including 

18 maintenance and training that is for, or is necessary for 

19 the adoption and operation of, such technology) as deter20 mined by the Secretary to be reasonable. 

21 ‘‘(B) The term ‘net allowable costs’ means allowable 

22 costs reduced by any payment that is made to the Med23 icaid provider involved from any other source that is di24 rectly attributable to payment for certified EHR tech25 nology or services described in subparagraph (A). 


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1 ‘‘(C) In no case shall— 

2 ‘‘(i) the aggregate allowable costs under this 

3 subsection (covering one or more years) with respect 

4 to a Medicaid provider described in paragraph 

5 (2)(A) for purchase and initial implementation of 

6 certified EHR technology (and services described in 

7 subparagraph (A)) exceed $25,000 or include costs 

8 over a period of longer than 5 years; 

9 ‘‘(ii) for costs not described in clause (i) relat10 ing to the operation, maintenance, or use of certified 

11 EHR technology, the annual allowable costs under 

12 this subsection with respect to such a Medicaid pro13 vider for costs not described in clause (i) for any 

14 year exceed $10,000; 

15 ‘‘(iii) payment described in paragraph (1) for 

16 costs described in clause (ii) be made with respect 

17 to such a Medicaid provider over a period of more 

18 than 5 years; 

19 ‘‘(iv) the aggregate allowable costs under this 

20 subsection with respect to such a Medicaid provider 

21 for all costs exceed $75,000; or 

22 ‘‘(v) the allowable costs, whether for purchase 

23 and initial implementation, maintenance, or other24 wise, for a Medicaid provider described in paragraph 

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1 tion as the Secretary shall establish, based on an 

2 amount determined by the Secretary as being ade3 quate to adopt and maintain certified EHR tech4 nology, consistent with paragraph (6). 

5 ‘‘(5) Payments described in paragraph (1) are not in 

6 accordance with this subsection unless the following re7 quirements are met: 

8 ‘‘(A) The State provides assurances satisfactory 

9 to the Secretary that amounts received under sub10 section (a)(3)(F) with respect to costs of a Medicaid 

11 provider are paid directly to such provider without 

12 any deduction or rebate. 

13 ‘‘(B) Such Medicaid provider is responsible for 

14 payment of the costs described in such paragraph 

15 that are not provided under this title. 

16 ‘‘(C) With respect to payments to such Med17 icaid provider for costs other than costs related to 

18 the initial adoption of certified EHR technology, the 

19 Medicaid provider demonstrates meaningful use of 

20 certified EHR technology through a means that is 

21 approved by the State and acceptable to the Sec22 retary, and that may be based upon the methodolo23 gies applied under section 1848(o) or 1886(n). In 

24 establishing such means, which may include the re25 porting of clinical quality measures to the State, the 


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1 State shall ensure that populations with unique 

2 needs, such as children, are appropriately addressed. 

3 ‘‘(D) To the extent specified by the Secretary, 

4 the certified EHR technology is compatible with 

5 State or Federal administrative management sys6 tems. 

7 ‘‘(6)(A) In no case shall the payments described in 

8 paragraph (1), with respect to a hospital, exceed in the 

9 aggregate the product of— 

10 ‘‘(i) the overall hospital EHR amount for the 

11 hospital computed under subparagraph (B); and 

12 ‘‘(ii) the Medicaid share for such hospital com13 puted under subparagraph (C). 

14 ‘‘(B) For purposes of this paragraph, the overall hos15 pital EHR amount, with respect to a hospital, is the sum 

16 of the applicable amounts specified in section 

17 1886(n)(2)(A) for such hospital for the first 4 payment 

18 years (as estimated by the Secretary) determined as if the 

19 Medicare share specified in clause (ii) of such section were 

20 1. The Secretary shall publish in the Federal Register the 

21 overall hospital EHR amount for each hospital eligible for 

22 payments under this subsection. In computing amounts 

23 under clause (ii) for payment years after the first payment 

24 year, the Secretary shall assume that in subsequent pay25 ment years discharges increase at the average annual rate 


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1 of growth of the most recent three years for which dis2 charge data are available. 

3 ‘‘(C) The Medicaid share computed under this sub4 paragraph, for a hospital for a period specified by the Sec5 retary, shall be calculated in the same manner as the 

6 Medicare share under section 1886(n)(2)(D) for such a 

7 hospital and period, except that there shall be substituted 

8 for the numerator under clause (i) of such section the 

9 amount that is equal to the number of inpatient-bed-days 

10 (as established by the Secretary) which are attributable 

11 to individuals who are receiving medical assistance under 

12 this title and who are not described in section 

13 1886(n)(2)(D)(i). In computing inpatient-bed-days under 

14 the previous sentence, the Secretary shall take into ac15 count inpatient-bed-days attributable to inpatient-bed16 days that are paid for individuals enrolled in a Medicaid 

17 managed care plan (under section 1903(m) or section 

18 1932). 

19 ‘‘(7) With respect to health care providers other than 

20 hospitals, the Secretary shall establish and implement a 

21 detailed process to ensure coordination of the different 

22 programs for payment of such health care providers for 

23 adoption or use of health information technology (includ24 ing certified EHR technology), as well as payments for 

25 such health care providers provided under this title or title 


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1 XVIII, to assure no duplication of funding. The Secretary 

2 shall promulgate regulations to carry out the preceding 

3 sentence. 

4 ‘‘(8) In carrying out paragraph (5)(C), the State and 

5 Secretary shall seek, to the maximum extent practicable, 

6 to avoid duplicative requirements from Federal and State 

7 Governments to demonstrate meaningful use of certified 

8 EHR technology under this title and title XVIII. In doing 

9 so, the Secretary may deem satisfaction of requirements 

10 for such meaningful use for a payment year under title 

11 XVIII to be sufficient to qualify as meaningful use under 

12 this subsection. The Secretary may also specify the report13 ing periods under this subsection in order to carry out this 

14 paragraph. 

15 ‘‘(9) In order to be provided Federal financial partici16 pation under subsection (a)(3)(F)(ii), a State must dem17 onstrate to the satisfaction of the Secretary, that the 

18 State— 

19 ‘‘(A) is using the funds provided for the pur20 poses of administering payments under this sub21 section, including tracking of meaningful use by 

22 Medicaid providers; 

23 ‘‘(B) is conducting adequate oversight of the 

24 program under this subsection, including routine 


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1 tracking of meaningful use attestations and report2 ing mechanisms; and 

3 ‘‘(C) is pursuing initiatives to encourage the 

4 adoption of certified EHR technology to promote 

5 health care quality and the exchange of health care 

6 information under this title, subject to applicable 

7 laws and regulations governing such exchange. 

8 ‘‘(10) The Secretary shall periodically submit reports 

9 to the Committee on Energy and Commerce of the House 

10 of Representatives and the Committee on Finance of the 

11 Senate on status, progress, and oversight of payments 

12 under paragraph (1).’’. 

13 (b) IMPLEMENTATION FUNDING.—In addition to 

14 funds otherwise available, out of any funds in the Treas15 ury not otherwise appropriated, there are appropriated to 

16 the Secretary of Health and Human Services for the Cen17 ter for Medicare & Medicaid Services Program Manage18 ment Account, $40,000,000 for each of fiscal years 2009 

19 through 2015 and $20,000,000 for each succeeding fiscal 

20 year through fiscal year 2018, which shall be available for 

21 purposes of carrying out the provisions of (and the amend22 ments made by) this part. Amounts appropriated under 

23 this subsection for a fiscal year shall be available until ex24 pended. 


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1 (c) HHS REPORT ON IMPLEMENTATION OF DE2 TAILED PROCESS TO ASSURE NO DUPLICATION OF FUND3 ING.—Not later than July 1, 2012, the Secretary of 

4 Health and Human Services shall submit to Congress a 

5 report on the establishment and implementation of the de6 tailed process under section 1903(t)(7) of the Social Secu7 rity Act, as added by subsection (a), together with rec8 ommendations for such legislation and administrative ac9 tion as the Secretary determines appropriate. 

10 TITLE V—STATE FISCAL RELIEF 

11 SEC. 5000. PURPOSES; TABLE OF CONTENTS. 

12 (a) PURPOSES.—The purposes of this title are as fol13 lows: 

14 (1) To provide fiscal relief to States in a period 

15 of economic downturn. 

16 (2) To protect and maintain State Medicaid 

17 programs during a period of economic downturn, in18 cluding by helping to avert cuts to provider payment 

19 rates and benefits or services, and to prevent con20 strictions of income eligibility requirements for such 

21 programs, but not to promote increases in such re22 quirements. 

23 (b) TABLE OF CONTENTS.—The table of contents for 

24 this title is as follows: 

TITLE V—STATE FISCAL RELIEF 

Sec. 5000. Purposes; table of contents. 


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Sec. 5001. Temporary increase of Medicaid FMAP. 

Sec. 5002. Extension and update of special rule for increase of Medicaid DSH 

allotments for low DSH States. 

Sec. 5003. Payment of Medicare liability to States as a result of the Special 

Disability Workload Project. 

Sec. 5004. Funding for the Department of Health and Human Services Office 

of the Inspector General. 

Sec. 5005. GAO study and report regarding State needs during periods of national economic downturn. 

1 SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP. 

2 (a) PERMITTING MAINTENANCE OF FMAP.—Subject 

3 to subsections (e), (f), and (g), if the FMAP determined 

4 without regard to this section for a State for— 

5 (1) fiscal year 2009 is less than the FMAP as 

6 so determined for fiscal year 2008, the FMAP for 

7 the State for fiscal year 2008 shall be substituted 

8 for the State’s FMAP for fiscal year 2009, before 

9 the application of this section; 

10 (2) fiscal year 2010 is less than the FMAP as 

11 so determined for fiscal year 2008 or fiscal year 

12 2009 (after the application of paragraph (1)), the 

13 greater of such FMAP for the State for fiscal year 

14 2008 or fiscal year 2009 shall be substituted for the 

15 State’s FMAP for fiscal year 2010, before the appli16 cation of this section; and 

17 (3) fiscal year 2011 is less than the FMAP as 

18 so determined for fiscal year 2008, fiscal year 2009 

19 (after the application of paragraph (1)), or fiscal 

20 year 2010 (after the application of paragraph (2)), 

21 the greatest of such FMAP for the State for fiscal 


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1 year 2008, fiscal year 2009, or fiscal year 2010 shall 

2 be substituted for the State’s FMAP for fiscal year 

3 2011, before the application of this section, but only 

4 for the first calendar quarter in fiscal year 2011. 

5 (b) GENERAL 7.6 PERCENTAGE POINT INCREASE.— 

6 Subject to subsections (e), (f), and (g), for each State for 

7 calendar quarters during the recession adjustment period 

8 (as defined in subsection (h)(2)) , the FMAP (after the 

9 application of subsection (a)) shall be increased (without 

10 regard to any limitation otherwise specified in section 

11 1905(b) of the Social Security Act) by 7.6 percentage 

12 points. 

13 (c) ADDITIONAL RELIEF BASED ON INCREASE IN

14 UNEMPLOYMENT.— 

15 (1) IN GENERAL.—Subject to subsections (e), 

16 (f), and (g), if a State is a qualifying State under 

17 paragraph (2) for a calendar quarter occurring dur18 ing the recession adjustment period, the FMAP for 

19 the State shall be further increased by the number 

20 of percentage points equal to the product of the 

21 State percentage applicable for the State under sec22 tion 1905(b) of the Social Security Act (42 U.S.C. 

23 1396d(b)) after the application of subsections (a) 

24 and (b) and the applicable percent determined in 

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1 er, for a previous such calendar quarter, subject to 

2 paragraph (4)) . 

3 (2) QUALIFYING CRITERIA.— 

4 (A) IN GENERAL.—For purposes of para5 graph (1), a State qualifies for additional relief 

6 under this subsection for a calendar quarter oc7 curring during the recession adjustment period 

8 if the State is 1 of the 50 States or the District 

9 of Columbia and the State satisfies any of the 

10 following criteria for the quarter: 

11 (i) An increase of at least 1.5 percent12 age points, but less than 2.5 percentage 

13 points, in the average monthly unemploy14 ment rate, seasonally adjusted, for the 

15 State or District, as determined by com16 paring months in the most recent previous 

17 3-consecutive month period for which data 

18 are available for the State or District to 

19 the lowest average monthly unemployment 

20 rate, seasonally adjusted, for the State or 

21 District for any 3-consecutive-month pe22 riod preceding that period and beginning 

23 on or after January 1, 2006 (based on the 

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1 tions of the Bureau of Labor Statistics of 

2 the Department of Labor). 

3 (ii) An increase of at least 2.5 per4 centage points, but less than 3.5 percent5 age points, in the average monthly unem6 ployment rate, seasonally adjusted, for the 

7 State or District (as so determined). 

8 (iii) An increase of at least 3.5 per9 centage points for the State or District, in 

10 the average monthly unemployment rate, 

11 seasonally adjusted, for the State or Dis12 trict (as so determined). 

13 (B) MAINTENANCE OF STATUS.—If a 

14 State qualifies for additional relief under this 

15 subsection for a calendar quarter, it shall be 

16 deemed to have qualified for such relief for each 

17 subsequent calendar quarter ending before July 

18 1, 2010. 

19 (3) APPLICABLE PERCENT.—For purposes of 

20 paragraph (1), the applicable percent is— 

21 (A) 2.5 percent, if the State satisfies the 

22 criteria described in paragraph (2)(A)(i) for the 

23 calendar quarter; 


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1 (B) 4.5 percent if the State satisfies the 

2 criteria described in paragraph (2)(A)(ii) for 

3 the calendar quarter; and 

4 (C) 6.5 percent if the State satisfies the 

5 criteria described in paragraph (2)(A)(iii) for 

6 the calendar quarter. 

7 (4) MAINTENANCE OF HIGHER PERCENTAGE

8 REDUCTION FOR PERIOD AFTER LOWER PERCENT9 AGE DEDUCTION WOULD OTHERWISE TAKE EF10 FECT.— 

11 (A) HOLD HARMLESS PERIOD.—If the per12 centage reduction applied to a State under 

13 paragraph (3) for any calendar quarter in the 

14 recession adjustment period beginning on or 

15 after January 1, 2009, and ending before July 

16 1, 2010, (determined without regard to this 

17 paragraph) is less than the percentage reduc18 tion applied for the preceding quarter (as so de19 termined), the higher percentage reduction shall 

20 continue in effect for each subsequent calendar 

21 quarter ending before July 1, 2010. 

22 (B) NOTICE OF DECREASE IN PERCENT23 AGE REDUCTION.—The Secretary shall notify a 

24 State at least 3 months prior to applying any 


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1 lower percentage reduction to the State under 

2 paragraph (3). 

3 (d) INCREASE IN CAP ON MEDICAID PAYMENTS TO

4 TERRITORIES.—Subject to subsections (f) and (g), with 

5 respect to entire fiscal years occurring during the reces6 sion adjustment period and with respect to fiscal years 

7 only a portion of which occurs during such period (and 

8 in proportion to the portion of the fiscal year that occurs 

9 during such period), the amounts otherwise determined for 

10 Puerto Rico, the Virgin Islands, Guam, the Northern Mar11 iana Islands, and American Samoa under subsections (f) 

12 and (g) of section 1108 of the Social Security Act (42 

13 6 U.S.C. 1308) shall each be increased by 15.2 percent. 

14 (e) SCOPE OF APPLICATION.—The increases in the 

15 FMAP for a State under this section shall apply for pur16 poses of title XIX of the Social Security Act and shall 

17 not apply with respect to— 

18 (1) disproportionate share hospital payments 

19 described in section 1923 of such Act (42 U.S.C. 

20 1396r–4); 

21 (2) payments under title IV of such Act (42 

22 U.S.C. 601 et seq.) (except that the increases under 

23 subsections (a) and (b) shall apply to payments 

24 under part E of title IV of such Act (42 U.S.C. 670 

25 et seq.)); 


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1 (3) payments under title XXI of such Act (42 

2 U.S.C. 1397aa et seq.); 

3 (4) any payments under title XIX of such Act 

4 that are based on the enhanced FMAP described in 

5 section 2105(b) of such Act (42 U.S.C. 1397ee(b)); 

6 or 

7 (5) any payments under title XIX of such Act 

8 that are attributable to expenditures for medical as9 sistance provided to individuals made eligible under 

10 a State plan under title XIX of the Social Security 

11 Act (including under any waiver under such title or 

12 under section 1115 of such Act (42 U.S.C. 1315)) 

13 because of income standards (expressed as a per14 centage of the poverty line) for eligibility for medical 

15 assistance that are higher than the income stand16 ards (as so expressed) for such eligibility as in effect 

17 on July 1, 2008. 

18 (f) STATE INELIGIBILITY.— 

19 (1) MAINTENANCE OF ELIGIBILITY REQUIRE20 MENTS.— 

21 (A) IN GENERAL.—Subject to subpara22 graphs (B) and (C), a State is not eligible for 

23 an increase in its FMAP under subsection (a), 

24 (b), or (c), or an increase in a cap amount 

25 under subsection (d), if eligibility standards, 


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AMDT. NO. 98 

1 methodologies, or procedures under its State 

2 plan under title XIX of the Social Security Act 

3 (including any waiver under such title or under 

4 section 1115 of such Act (42 U.S.C. 1315)) are 

5 more restrictive than the eligibility standards, 

6 methodologies, or procedures, respectively, 

7 under such plan (or waiver) as in effect on July 

8 1, 2008. 

9 (B) STATE REINSTATEMENT OF ELIGI10 BILITY PERMITTED.—Subject to subparagraph 

11 (C), a State that has restricted eligibility stand12 ards, methodologies, or procedures under its 

13 State plan under title XIX of the Social Secu14 rity Act (including any waiver under such title 

15 or under section 1115 of such Act (42 U.S.C. 

16 1315)) after July 1, 2008, is no longer ineli17 gible under subparagraph (A) beginning with 

18 the first calendar quarter in which the State 

19 has reinstated eligibility standards, methodolo20 gies, or procedures that are no more restrictive 

21 than the eligibility standards, methodologies, or 

22 procedures, respectively, under such plan (or 

23 waiver) as in effect on July 1, 2008. 

24 (C) SPECIAL RULES.—A State shall not be 

25 ineligible under subparagraph (A)— 


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1 (i) for the calendar quarters before 

2 July 1, 2009, on the basis of a restriction 

3 that was applied after July 1, 2008, and 

4 before the date of the enactment of this 

5 Act, if the State prior to July 1, 2009, has 

6 reinstated eligibility standards, methodolo7 gies, or procedures that are no more re8 strictive than the eligibility standards, 

9 methodologies, or procedures, respectively, 

10 under such plan (or waiver) as in effect on 

11 July 1, 2008; or 

12 (ii) on the basis of a restriction that 

13 was directed to be made under State law 

14 as of July 1, 2008, and would have been 

15 in effect as of such date, but for a delay 

16 in the request for, and approval of, a waiv17 er under section 1115 of such Act with re18 spect to such restriction. 

19 (2) COMPLIANCE WITH PROMPT PAY REQUIRE20 MENTS.—No State shall be eligible for an increased 

21 FMAP rate as provided under this section for any 

22 claim submitted by a provider subject to the terms 

23 of section 1902(a)(37)(A) of the Social Security Act 

24 (42 U.S.C. 1396a(a)(37)(A)) during any period in 

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1 ance with section 1902(a)(37)(A) of such Act. Each 

2 State shall report to the Secretary, no later than 30 

3 days following the 1st day of the month, its compli4 ance with the requirements of section 

5 1902(a)(37)(A) of the Social Security Act as they 

6 pertain to claims made for covered services during 

7 the preceding month. 

8 (3) NO WAIVER AUTHORITY.—The Secretary 

9 may not waive the application of this subsection or 

10 subsection (g) under section 1115 of the Social Se11 curity Act or otherwise. 

12 (g) REQUIREMENTS.— 

13 (1) IN GENERAL.—A State may not deposit or 

14 credit the additional Federal funds paid to the State 

15 as a result of this section to any reserve or rainy day 

16 fund maintained by the State. 

17 (2) STATE REPORTS.—Each State that is paid 

18 additional Federal funds as a result of this section 

19 shall, not later than September 30, 2011, submit a 

20 report to the Secretary, in such form and such man21 ner as the Secretary shall determine, regarding how 

22 the additional Federal funds were expended. 

23 (3) ADDITIONAL REQUIREMENT FOR CERTAIN

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1 ward the non-Federal share of expenditures under 

2 the State Medicaid plan required under section 

3 1902(a)(2) of the Social Security Act (42 U.S.C. 

4 1396a(a)(2)), the State is not eligible for an in5 crease in its FMAP under subsection (b) or (c), or 

6 an increase in a cap amount under subsection (d), 

7 if it requires that such political subdivisions pay for 

8 quarters during the recession adjustment period a 

9 greater percentage of the non-Federal share of such 

10 expenditures, or a greater percentage of the non11 Federal share of payments under section 1923, than 

12 the respective percentage that would have been re13 quired by the State under such plan on September 

14 30, 2008, prior to application of this section. 

15 (h) DEFINITIONS.—In this section, except as other16 wise provided: 

17 (1) FMAP.—The term ‘‘FMAP’’ means the 

18 Federal medical assistance percentage, as defined in 

19 section 1905(b) of the Social Security Act (42 

20 U.S.C. 1396d(b)), as determined without regard to 

21 this section except as otherwise specified. 

22 (2) POVERTY LINE.—The term ‘‘poverty line’’ 

23 has the meaning given such term in section 673(2) 

24 of the Community Services Block Grant Act (42 


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1 U.S.C. 9902(2)), including any revision required by 

2 such section. 

3 (3) RECESSION ADJUSTMENT PERIOD.—The 

4 term ‘‘recession adjustment period’’ means the pe5 riod beginning on October 1, 2008, and ending on 

6 December 31, 2010. 

7 (4) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of Health and Human Services. 

9 (5) STATE.—The term ‘‘State’’ has the mean10 ing given such term for purposes of title XIX of the 

11 Social Security Act (42 U.S.C. 1396 et seq.). 

12 (i) SUNSET.—This section shall not apply to items 

13 and services furnished after the end of the recession ad14 justment period. 

15 SEC. 5002. EXTENSION AND UPDATE OF SPECIAL RULE FOR 

16 INCREASE OF MEDICAID DSH ALLOTMENTS 

17 FOR LOW DSH STATES. 

18 Section 1923(f)(5) of the Social Security Act (42 

19 U.S.C. 1396r–4(f)(5)) is amended— 

20 (1) in subparagraph (B)— 

21 (A) in the subparagraph heading, by strik22 ing ‘‘YEAR 2004 AND SUBSEQUENT FISCAL

23 YEARS’’ and inserting ‘‘YEARS 2004 THROUGH

24 2008’’; 


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1 (B) in clause (i), by inserting ‘‘and’’ after 

2 the semicolon; 

3 (C) in clause (ii), by striking ‘‘; and’’ and 

4 inserting a period; and 

5 (D) by striking clause (iii); and 

6 (2) by adding at the end the following subpara7 graph: 

8 ‘‘(C) FOR FISCAL YEAR 2009 AND SUBSE9 QUENT FISCAL YEARS.—In the case of a State 

10 in which the total expenditures under the State 

11 plan (including Federal and State shares) for 

12 disproportionate share hospital adjustments 

13 under this section for fiscal year 2006, as re14 ported to the Administrator of the Centers for 

15 Medicare & Medicaid Services as of August 31, 

16 2009, is greater than 0 but less than 3 percent 

17 of the State’s total amount of expenditures 

18 under the State plan for medical assistance 

19 during the fiscal year, the DSH allotment for 

20 the State with respect to— 

21 ‘‘(i) fiscal year 2009, shall be the 

22 DSH allotment for the State for fiscal year 

23 2008 increased by 16 percent; 


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1 ‘‘(ii) fiscal year 2010, shall be the 

2 DSH allotment for the State for fiscal year 

3 2009 increased by 16 percent; 

4 ‘‘(iii) fiscal year 2011 for the period 

ending on December 31, 2010, shall be 1 5 ⁄4

6 of the DSH allotment for the State for fis7 cal year 2010 increased by 16 percent; 

8 ‘‘(iv) fiscal year 2011 for the period 

9 beginning on January 1, 2011, and ending 

on September 30, 2011, shall be 3 10 ⁄4 of the 

11 DSH allotment that would have been de12 termined under this subsection for the 

13 State for fiscal year 2011 if this subpara14 graph had not been enacted; 

15 ‘‘(v) fiscal year 2012, shall be the 

16 DSH allotment that would have been de17 termined under this subsection for the 

18 State for fiscal year 2012 if this subpara19 graph had not been enacted; and 

20 ‘‘(vi) fiscal year 2013 and any subse21 quent fiscal year, shall be the DSH allot22 ment for the State for the previous fiscal 

23 year subject to an increase for inflation as 

24 provided in paragraph (3)(A).’’. 


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1 SEC. 5003. PAYMENT OF MEDICARE LIABILITY TO STATES 

2 AS A RESULT OF THE SPECIAL DISABILITY 

3 WORKLOAD PROJECT. 

4 (a) IN GENERAL.—The Secretary, in consultation 

5 with the Commissioner, shall work with each State to 

6 reach an agreement, not later than 3 months after the 

7 date of enactment of this Act, on the amount of a payment 

8 for the State related to the Medicare program liability as 

9 a result of the Special Disability Workload project, subject 

10 to the requirements of subsection (c). 

11 (b) PAYMENTS.— 

12 (1) DEADLINE FOR MAKING PAYMENTS.—Not 

13 later than 30 days after reaching an agreement with 

14 a State under subsection (a), the Secretary shall pay 

15 the State, from the amounts appropriated under 

16 paragraph (2), the payment agreed to for the State. 

17 (2) APPROPRIATION.—Out of any money in the 

18 Treasury not otherwise appropriated, there is appro19 priated $3,000,000,000 for fiscal year 2009 for 

20 making payments to States under paragraph (1). 

21 (3) LIMITATIONS.—In no case may— 

22 (A) the aggregate amount of payments 

23 made by the Secretary to States under para24 graph (1) exceed $3,000,000,000; or 

25 (B) any payments be provided by the Sec26 retary under this section after the first day of 


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1 the first month that begins 4 months after the 

2 date of enactment of this Act. 

3 (c) REQUIREMENTS.—The requirements of this sub4 section are the following: 

5 (1) FEDERAL DATA USED TO DETERMINE

6 AMOUNT OF PAYMENTS.—The amount of the pay7 ment under subsection (a) for each State is deter8 mined on the basis of the most recent Federal data 

9 available, including the use of proxies and reasonable 

10 estimates as necessary, for determining expeditiously 

11 the amount of the payment that shall be made to 

12 each State that enters into an agreement under this 

13 section. The payment methodology shall consider the 

14 following factors: 

15 (A) The number of SDW cases found to 

16 have been eligible for benefits under the Medi17 care program and the month of the initial 

18 Medicare program eligibility for such cases. 

19 (B) The applicable non-Federal share of 

20 expenditures made by a State under the Med21 icaid program during the time period for SDW 

22 cases. 

23 (C) Such other factors as the Secretary 

24 and the Commissioner, in consultation with the 

25 States, determine appropriate. 


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1 (2) CONDITIONS FOR PAYMENTS.—A State 

2 shall not receive a payment under this section unless 

3 the State— 

4 (A) waives the right to file a civil action 

5 (or to be a party to any action) in any Federal 

6 or State court in which the relief sought in7 cludes a payment from the United States to the 

8 State related to the Medicare liability under 

9 title XVIII of the Social Security Act (42 

10 U.S.C. 1395 et seq.) as a result of the Special 

11 Disability Workload project; and 

12 (B) releases the United States from any 

13 further claims for reimbursement of State ex14 penditures as a result of the Special Disability 

15 Workload project. 

16 (3) NO INDIVIDUAL STATE CLAIMS DATA RE17 QUIRED.—No State shall be required to submit indi18 vidual claims evidencing payment under the Med19 icaid program as a condition for receiving a payment 

20 under this section. 

21 (4) INELIGIBLE STATES.—No State that is a 

22 party to a civil action in any Federal or State court 

23 in which the relief sought includes a payment from 

24 the United States to the State related to the Medi25 care liability under title XVIII of the Social Security 


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1 Act (42 U.S.C. 1395 et seq.) as a result of the Spe2 cial Disability Workload project shall be eligible to 

3 receive a payment under this section while such an 

4 action is pending or if such an action is resolved in 

5 favor of the State. 

6 (d) DEFINITIONS.—In this section: 

7 (1) COMMISSIONER.—The term ‘‘Commis8 sioner’’ means the Commissioner of Social Security. 

9 (2) MEDICAID PROGRAM.—The term ‘‘Medicaid 

10 program’’ means the program of medical assistance 

11 established under title XIX of the Social Security 

12 Act (42 U.S.C. 1396a et seq.) and includes medical 

13 assistance provided under any waiver of that pro14 gram approved under section 1115 or 1915 of such 

15 Act (42 U.S.C. 1315, 1396n) or otherwise. 

16 (3) MEDICARE PROGRAM.—The term ‘‘Medicare 

17 program’’ means the program established under title 

18 XVIII of the Social Security Act (42 U.S.C. 1395 et 

19 seq.). 

20 (4) SECRETARY.—The term ‘‘Secretary’’ means 

21 the Secretary of Health and Human Services. 

22 (5) SDW CASE.—The term ‘‘SDW case’’ means 

23 a case in the Special Disability Workload project in24 volving an individual determined by the Commis25 sioner to have been eligible for benefits under title 


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1 II of the Social Security Act (42 U.S.C. 401 et seq.) 

2 for a period during which such benefits were not 

3 provided to the individual and who was, during all 

4 or part of such period, enrolled in a State Medicaid 

5 program. 

6 (6) SPECIAL DISABILITY WORKLOAD

7 PROJECT.—The term ‘‘Special Disability Workload 

8 project’’ means the project described in the 2008 

9 Annual Report of the Board of Trustees of the Fed10 eral Old-Age and Survivors Insurance and Federal 

11 Disability Insurance Trust Funds, H.R. Doc. No. 

12 110-104, 110th Cong. (2008). 

13 (7) STATE.—The term ‘‘State’’ means each of 

14 the 50 States and the District of Columbia. 

15 SEC. 5004. FUNDING FOR THE DEPARTMENT OF HEALTH 

16 AND HUMAN SERVICES OFFICE OF THE IN17 SPECTOR GENERAL. 

18 For purposes of ensuring the proper expenditure of 

19 Federal funds under title XIX of the Social Security Act 

20 (42 U.S.C. 1396 et seq.), there is appropriated to the Of21 fice of the Inspector General of the Department of Health 

22 and Human Services, out of any money in the Treasury 

23 not otherwise appropriated and without further appropria24 tion, $31,250,000 for the recession adjustment period (as 

25 defined in section 5001(h)(3)). Amounts appropriated 


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1 under this section shall remain available for expenditure 

2 until expended and shall be in addition to any other 

3 amounts appropriated or made available to such Office for 

4 such purposes. 

5 SEC. 5005. GAO STUDY AND REPORT REGARDING STATE 

6 NEEDS DURING PERIODS OF NATIONAL ECO7 NOMIC DOWNTURN. 

8 (a) IN GENERAL.—The Comptroller General of the 

9 United States shall study the period of national economic 

10 downturn in effect on the date of enactment of this Act, 

11 as well as previous periods of national economic downturn 

12 since 1974, for the purpose of developing recommenda13 tions for addressing the needs of States during such peri14 ods. As part of such analysis, the Comptroller General 

15 shall study the past and projected effects of temporary in16 creases in the Federal medical assistance percentage 

17 under the Medicaid program with respect to such periods. 

18 (b) REPORT.—Not later than April 1, 2011, the 

19 Comptroller General of the United States shall submit a 

20 report to the appropriate committees of Congress on the 

21 results of the study conducted under paragraph (1). Such 

22 report shall include the following: 

23 (1) Such recommendations as the Comptroller 

24 General determines appropriate for modifying the 

25 national economic downturn assistance formula for 


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1 temporary adjustment of the Federal medical assist2 ance percentage under Medicaid (also referred to as 

3 a ‘‘countercyclical FMAP’’) described in GAO report 

4 number GAO–07–97 to improve the effectiveness of 

5 the application of such percentage in addressing the 

6 needs of States during periods of national economic 

7 downturn, including recommendations for— 

8 (A) improvements to the factors that would 

9 begin and end the application of such percent10 age; 

11 (B) how the determination of the amount 

12 of such percentage could be adjusted to address 

13 State and regional economic variations during 

14 such periods; and 

15 (C) how the determination of the amount 

16 of such percentage could be adjusted to be more 

17 responsive to actual Medicaid costs incurred by 

18 States during such periods. 

19 (2) An analysis of the impact on States during 

20 such periods of— 

21 (A) declines in private health benefits cov22 erage; 

23 (B) declines in State revenues; and 

24 (C) caseload maintenance and growth 

25 under Medicaid, the State Children’s Health InVerDate Nov 24 2008 03:40 Jan 31, 2009 Jkt 079200 PO 00000 Frm 00734 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS H1

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1 surance Program, or any other publicly-funded 

2 programs to provide health benefits coverage 

3 for State residents. 

4 (3) Identification of, and recommendations for 

5 addressing, the effects on States of any other spe6 cific economic indicators that the Comptroller Gen7 eral determines appropriate. 


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Amendment No. 98 

H.R. 1 


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