I 

111TH CONGRESS 

1ST SESSION 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. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 26, 2009 

Mr. OBEY (for himself, Mr. RANGEL, Mr. WAXMAN, Mr. GEORGE MILLER of 

California, Mr. OBERSTAR, Mr. GORDON of Tennessee, Mr. FRANK of 

Massachusetts, Ms. VELA ́ZQUEZ, Mr. SPRATT, and Mr. TOWNS) introduced the following bill; which was referred to the Committee on Appropriations, and in addition to the Committee on the Budget, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

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

3 and Reinvestment Act of 2009’’. 

4 SEC. 2. TABLE OF CONTENTS. 

5 The table of contents for this Act is as follows: 

DIVISION A—APPROPRIATION PROVISIONS 

TITLE I—GENERAL PROVISIONS 

TITLE II—AGRICULTURE, NUTRITION, AND RURAL DEVELOPMENT 

TITLE III—COMMERCE, JUSTICE, AND SCIENCE 

TITLE IV—DEFENSE 

TITLE V—ENERGY AND WATER 

TITLE VI—FINANCIAL SERVICES AND GENERAL GOVERNMENT 

TITLE VII—HOMELAND SECURITY 

TITLE VIII—INTERIOR AND ENVIRONMENT 

TITLE IX—LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION 

TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS 

TITLE XI—DEPARTMENT OF STATE 

TITLE XII—TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT 

TITLE XIII—STATE FISCAL STABILIZATION FUND 

DIVISION B—OTHER PROVISIONS 

TITLE I—TAX PROVISIONS 

TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES 

TITLE III—HEALTH INSURANCE ASSISTANCE FOR THE UNEMPLOYED 

TITLE IV—HEALTH INFORMATION TECHNOLOGY 

TITLE V—MEDICAID PROVISIONS 

TITLE VI—BROADBAND COMMUNICATIONS 

TITLE VII—ENERGY 

6 SEC. 3. PURPOSES AND PRINCIPLES. 

7 (a) STATEMENT OF PURPOSES.—The purposes of 

8 this Act include the following: 

9 (1) To preserve and create jobs and promote 

10 economic recovery. 

11 (2) To assist those most impacted by the reces12 sion. 


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1 (3) To provide investments needed to increase 

2 economic efficiency by spurring technological ad3 vances in science and health. 

4 (4) To invest in transportation, environmental 

5 protection, and other infrastructure that will provide 

6 long-term economic benefits. 

7 (5) To stabilize State and local government 

8 budgets, in order to minimize and avoid reductions 

9 in essential services and counterproductive state and 

10 local tax increases. 

11 (b) GENERAL PRINCIPLES CONCERNING USE OF

12 FUNDS.—The President and the heads of Federal depart13 ments and agencies shall manage and expend the funds 

14 made available in this Act so as to achieve the purposes 

15 specified in subsection (a), including commencing expendi16 tures and activities as quickly as possible consistent with 

17 prudent management. 

18 SEC. 4. REFERENCES. 

19 Except as expressly provided otherwise, any reference 

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

21 be treated as referring only to the provisions of that divi22 sion. 

23 SEC. 5. EMERGENCY DESIGNATIONS. 

24 (a) IN GENERAL.—Each amount in this Act is des25 ignated as an emergency requirement and necessary to 


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1 meet emergency needs pursuant to section 204(a) of S. 

2 Con. Res. 21 (110th Congress) and section 301(b)(2) of 

3 S. Con. Res. 70 (110th Congress), the concurrent resolu4 tions on the budget for fiscal years 2008 and 2009. 

5 (b) PAY-AS-YOU-GO.—All applicable provisions in 

6 this Act are designated as an emergency for purposes of 

7 pay-as-you-go principles. 

8 DIVISION A—APPROPRIATION 

9 PROVISIONS 

10 SEC. 1001. STATEMENT OF APPROPRIATIONS. 

11 The following sums in this Act are appropriated, out 

12 of any money in the Treasury not otherwise appropriated, 

13 for the fiscal year ending September 30, 2009, and for 

14 other purposes. 

15 TITLE I—GENERAL PROVISIONS 

16 Subtitle A—Use of Funds 

17 SEC. 1101. RELATIONSHIP TO OTHER APPROPRIATIONS. 

18 Each amount appropriated or made available in this 

19 Act is in addition to amounts otherwise appropriated for 

20 the fiscal year involved. Enactment of this Act shall have 

21 no effect on the availability of amounts under the Con22 tinuing Appropriations Resolution, 2009 (division A of 

23 Public Law 110–329). 


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1 SEC. 1102. PREFERENCE FOR QUICK-START ACTIVITIES. 

2 In using funds made available in this Act for infra3 structure investment, recipients shall give preference to 

4 activities that can be started and completed expeditiously, 

5 including a goal of using at least 50 percent of the funds 

6 for activities that can be initiated not later than 120 days 

7 after the date of the enactment of this Act. Recipients 

8 shall also use grant funds in a manner that maximizes 

9 job creation and economic benefit. 

10 SEC. 1103. REQUIREMENT OF TIMELY AWARD OF GRANTS. 

11 (a) FORMULA GRANTS.—Formula grants using funds 

12 made available in this Act shall be awarded not later than 

13 30 days after the date of the enactment of this Act (or, 

14 in the case of appropriations not available upon enact15 ment, not later than 30 days after the appropriation be16 comes available for obligation), unless expressly provided 

17 otherwise in this Act. 

18 (b) COMPETITIVE GRANTS.—Competitive grants 

19 using funds made available in this Act shall be awarded 

20 not later than 90 days after the date of the enactment 

21 of this Act (or, in the case of appropriations not available 

22 upon enactment, not later than 90 days after the appro23 priation becomes available for obligation), unless expressly 

24 provided otherwise in this Act. 

25 (c) ADDITIONAL PERIOD FOR NEW PROGRAMS.—The 

26 time limits specified in subsections (a) and (b) may each 


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1 be extended by up to 30 days in the case of grants for 

2 which funding was not provided in fiscal year 2008. 

3 SEC. 1104. USE IT OR LOSE IT REQUIREMENTS FOR GRANT4 EES. 

5 (a) DEADLINE FOR BINDING COMMITMENTS.—Each 

6 recipient of a grant made using amounts made available 

7 in this Act in any account listed in subsection (c) shall 

8 enter into contracts or other binding commitments not 

9 later than 1 year after the date of the enactment of this 

10 Act (or not later than 9 months after the grant is award11 ed, if later) to make use of 50 percent of the funds award12 ed, and shall enter into contracts or other binding commit13 ments not later than 2 years after the date of the enact14 ment of this Act (or not later than 21 months after the 

15 grant is awarded, if later) to make use of the remaining 

16 funds. In the case of activities to be carried out directly 

17 by a grant recipient (rather than by contracts, subgrants, 

18 or other arrangements with third parties), a certification 

19 by the recipient specifying the amounts, planned timing, 

20 and purpose of such expenditures shall be deemed a bind21 ing commitment for purposes of this section. 

22 (b) REDISTRIBUTION OF UNCOMMITTED FUNDS.— 

23 The head of the Federal department or agency involved 

24 shall recover or deobligate any grant funds not committed 

25 in accordance with subsection (a), and redistribute such 


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1 funds to other recipients eligible under the grant program 

2 and able to make use of such funds in a timely manner 

3 (including binding commitments within 120 days after the 

4 reallocation). 

5 (c) APPROPRIATIONS TO WHICH THIS SECTION AP6 PLIES.—This section shall apply to grants made using 

7 amounts appropriated in any of the following accounts 

8 within this Act: 

9 (1) ‘‘Environmental Protection Agency—State 

10 and Tribal Assistance Grants’’. 

11 (2) ‘‘Department of Transportation—Federal 

12 Aviation Administration—Grants-in-Aid for Air13 ports’’. 

14 (3) ‘‘Department of Transportation—Federal 

15 Railroad Administration—Capital Assistance for 

16 Intercity Passenger Rail Service’’. 

17 (4) ‘‘Department of Transportation—Federal 

18 Transit Administration—Capital Investment 

19 Grants’’. 

20 (5) ‘‘Department of Transportation—Federal 

21 Transit Administration—Fixed Guideway Infra22 structure Investment’’. 

23 (6) ‘‘Department of Transportation—Federal 

24 Transit Administration—Transit Capital Assist25 ance’’. 


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1 (7) ‘‘Department of Housing and Urban Devel2 opment—Public and Indian Housing—Public Hous3 ing Capital Fund’’. 

4 (8) ‘‘Department of Housing and Urban Devel5 opment—Public and Indian Housing—Elderly, Dis6 abled, and Section 8 Assisted Housing Energy Ret7 rofit’’. 

8 (9) ‘‘Department of Housing and Urban Devel9 opment—Public and Indian Housing—Native Amer10 ican Housing Block Grants’’. 

11 (10) ‘‘Department of Housing and Urban De12 velopment—Community Planning and Develop13 ment—HOME Investment Partnerships Program’’. 

14 (11) ‘‘Department of Housing and Urban De15 velopment—Community Planning and Develop16 ment—Self-Help and Assisted Homeownership Op17 portunity Program’’. 

18 SEC. 1105. PERIOD OF AVAILABILITY. 

19 (a) IN GENERAL.—All funds appropriated in this Act 

20 shall remain available for obligation until September 30, 

21 2010, unless expressly provided otherwise in this Act. 

22 (b) REOBLIGATION.—Amounts that are not needed 

23 or cannot be used under title X of this Act for the activity 

24 for which originally obligated may be deobligated and, not25 withstanding the limitation on availability specified in subVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 section (a), reobligated for other activities that have re2 ceived funding from the same account or appropriation in 

3 such title. 

4 SEC. 1106. SET-ASIDE FOR MANAGEMENT AND OVERSIGHT. 

5 Unless other provision is made in this Act (or in other 

6 applicable law) for such expenses, up to 0.5 percent of 

7 each amount appropriated in this Act may be used for the 

8 expenses of management and oversight of the programs, 

9 grants, and activities funded by such appropriation, and 

10 may be transferred by the head of the Federal department 

11 or agency involved to any other appropriate account within 

12 the department or agency for that purpose. Funds set 

13 aside under this section shall remain available for obliga14 tion until September 30, 2012. 

15 SEC. 1107. APPROPRIATIONS FOR INSPECTORS GENERAL. 

16 In addition to funds otherwise made available in this 

17 Act, there are hereby appropriated the following sums to 

18 the specified Offices of Inspector General, to remain avail19 able until September 30, 2013, for oversight and audit of 

20 programs, grants, and projects funded under this Act: 

21 (1) ‘‘Department of Agriculture—Office of In22 spector General’’, $22,500,000. 

23 (2) ‘‘Department of Commerce—Office of In24 spector General’’, $10,000,000. 


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1 (3) ‘‘Department of Defense—Office of the In2 spector General’’, $15,000,000. 

3 (4) ‘‘Department of Education—Departmental 

4 Management—Office of the Inspector General’’, 

5 $14,000,000. 

6 (5) ‘‘Department of Energy—Office of Inspec7 tor General’’, $15,000,000. 

8 (6) ‘‘Department of Health and Human Serv9 ices—Office of the Secretary—Office of Inspector 

10 General’’, $19,000,000. 

11 (7) ‘‘Department of Homeland Security—Office 

12 of Inspector General’’, $2,000,000. 

13 (8) ‘‘Department of Housing and Urban Devel14 opment—Management and Administration—Office 

15 of Inspector General’’, $15,000,000. 

16 (9) ‘‘Department of the Interior—Office of In17 spector General’’, $15,000,000. 

18 (10) ‘‘Department of Justice—Office of Inspec19 tor General’’, $2,000,000. 

20 (11) ‘‘Department of Labor—Departmental 

21 Management—Office of Inspector General’’, 

22 $6,000,000. 

23 (12) ‘‘Department of Transportation—Office of 

24 Inspector General’’, $20,000,000. 


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1 (13) ‘‘Department of Veterans Affairs—Office 

2 of Inspector General’’, $1,000,000. 

3 (14) ‘‘Environmental Protection Agency—Office 

4 of Inspector General’’, $20,000,000. 

5 (15) ‘‘General Services Administration—Gen6 eral Activities—Office of Inspector General’’, 

7 $15,000,000. 

8 (16) ‘‘National Aeronautics and Space Adminis9 tration—Office of Inspector General’’, $2,000,000. 

10 (17) ‘‘National Science Foundation—Office of 

11 Inspector General’’, $2,000,000. 

12 (18) ‘‘Small Business Administration—Office of 

13 Inspector General’’, $10,000,000. 

14 (19) ‘‘Social Security Administration—Office of 

15 Inspector General’’, $2,000,000. 

16 (20) ‘‘Corporation for National and Community 

17 Service—Office of Inspector General’’, $1,000,000. 

18 SEC. 1108. APPROPRIATION FOR GOVERNMENT ACCOUNT19 ABILITY OFFICE. 

20 There is hereby appropriated as an additional amount 

21 for ‘‘Government Accountability Office—Salaries and Ex22 penses’’ $25,000,000, for oversight activities relating to 

23 this Act. 


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1 SEC. 1109. PROHIBITED USES. 

2 None of the funds appropriated or otherwise made 

3 available in this Act may be used for any casino or other 

4 gambling establishment, aquarium, zoo, golf course, or 

5 swimming pool. 

6 SEC. 1110. USE OF AMERICAN IRON AND STEEL. 

7 (a) IN GENERAL.—None of the funds appropriated 

8 or otherwise made available by this Act may be used for 

9 a project for the construction, alteration, maintenance, or 

10 repair of a public building or public work unless all of the 

11 iron and steel used in the project is produced in the United 

12 States. 

13 (b) EXCEPTIONS.—Subsection (a) shall not apply in 

14 any case in which the head of the Federal department or 

15 agency involved finds that— 

16 (1) applying subsection (a) would be incon17 sistent with the public interest; 

18 (2) iron and steel are not produced in the 

19 United States in sufficient and reasonably available 

20 quantities and of a satisfactory quality; or 

21 (3) inclusion of iron and steel produced in the 

22 United States will increase the cost of the overall 

23 project by more than 25 percent. 

24 (c) WRITTEN JUSTIFICATION FOR WAIVER.—If the 

25 head of a Federal department or agency determines that 

26 it is necessary to waive the application of subsection (a) 


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1 based on a finding under subsection (b), the head of the 

2 department or agency shall publish in the Federal Register 

3 a detailed written justification as to why the provision is 

4 being waived. 

5 (d) DEFINITIONS.—In this section, the terms ‘‘public 

6 building’’ and ‘‘public work’’ have the meanings given such 

7 terms in section 1 of the Buy American Act (41 U.S.C. 

8 10c) and include airports, bridges, canals, dams, dikes, 

9 pipelines, railroads, multiline mass transit systems, roads, 

10 tunnels, harbors, and piers. 

11 SEC. 1111. WAGE RATE REQUIREMENTS. 

12 Notwithstanding any other provision of law and in 

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

14 laborers and mechanics employed by contractors and sub15 contractors on projects funded directly by or assisted in 

16 whole or in part by and through the Federal Government 

17 pursuant to this Act shall be paid wages at rates not less 

18 than those prevailing on projects of a character similar 

19 in the locality as determined by the Secretary of Labor 

20 in accordance with subchapter IV of chapter 31 of title 

21 40, United States Code. With respect to the labor stand22 ards specified in this section, the Secretary of Labor shall 

23 have the authority and functions set forth in Reorganiza24 tion Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 

25 App.) and section 3145 of title 40, United States Code. 


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1 SEC. 1112. ADDITIONAL ASSURANCE OF APPROPRIATE USE 

2 OF FUNDS. 

3 None of the funds provided by this Act may be made 

4 available to the State of Illinois, or any agency of the 

5 State, unless (1) the use of such funds by the State is 

6 approved in legislation enacted by the State after the date 

7 of the enactment of this Act, or (2) Rod R. Blagojevich 

8 no longer holds the office of Governor of the State of Illi9 nois. The preceding sentence shall not apply to any funds 

10 provided directly to a unit of local government (1) by a 

11 Federal department or agency, or (2) by an established 

12 formula from the State. 

13 SEC. 1113. PERSISTENT POVERTY COUNTIES. 

14 (a) ALLOCATION REQUIREMENT.—Of the amount ap15 propriated in this Act for ‘‘Department of Agriculture— 

16 Rural Development Programs—Rural Community Ad17 vancement Program’’, at least 10 percent shall be allo18 cated for assistance in persistent poverty counties. 

19 (b) DEFINITION.—For purposes of this section, the 

20 term ‘‘persistent poverty counties’’ means any county that 

21 has had 20 percent or more of its population living in pov22 erty over the past 30 years, as measured by the 1980, 

23 1990, and 2000 decennial censuses. 


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1 SEC. 1114. REQUIRED PARTICIPATION IN E-VERIFY PRO2 GRAM. 

3 None of the funds made available in this Act may 

4 be used to enter into a contract with an entity that does 

5 not participate in the E-verify program described in sec6 tion 401(b) of the Illegal Immigration Reform and Immi7 grant Responsibility Act of 1996 (8 U.S.C. 1324a note). 

8 Subtitle B—Accountability in 

9 Recovery Act Spending 

10 PART 1—TRANSPARENCY AND OVERSIGHT 

11 REQUIREMENTS 

12 SEC. 1201. TRANSPARENCY REQUIREMENTS. 

13 (a) REQUIREMENTS FOR FEDERAL AGENCIES.— 

14 Each Federal agency shall publish on the website Recov15 ery.gov (as established under section 1226 of this sub16 title)— 

17 (1) a plan for using funds made available in 

18 this Act to the agency; and 

19 (2) all announcements for grant competitions, 

20 allocations of formula grants, and awards of com21 petitive grants using those funds. 

22 (b) REQUIREMENTS FOR FEDERAL, STATE, AND

23 LOCAL GOVERNMENT AGENCIES.— 

24 (1) INFRASTRUCTURE INVESTMENT FUND25 ING.—With respect to funds made available under 

26 this Act for infrastructure investments to Federal, 


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1 State, or local government agencies, the following re2 quirements apply: 

3 (A) Each such agency shall notify the pub4 lic of funds obligated to particular infrastruc5 ture investments by posting the notification on 

6 the website Recovery.gov. 

7 (B) The notification required by subpara8 graph (A) shall include the following: 

9 (i) A description of the infrastructure 

10 investment funded. 

11 (ii) The purpose of the infrastructure 

12 investment. 

13 (iii) The total cost of the infrastruc14 ture investment. 

15 (iv) The rationale of the agency for 

16 funding the infrastructure investment with 

17 funds made available under this Act. 

18 (v) The name of the person to contact 

19 at the agency if there are concerns with 

20 the infrastructure investment and, with re21 spect to Federal agencies, an email address 

22 for the Federal official in the agency whom 

23 the public can contact. 

24 (vi) In the case of State or local agen25 cies, a certification from the Governor, 


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1 mayor, or other chief executive, as appro2 priate, that the infrastructure investment 

3 has received the full review and vetting re4 quired by law and that the chief executive 

5 accepts responsibility that the infrastruc6 ture investment is an appropriate use of 

7 taxpayer dollars. A State or local agency 

8 may not receive infrastructure investment 

9 funding from funds made available in this 

10 Act unless this certification is made. 

11 (2) OPERATIONAL FUNDING.—With respect to 

12 funds made available under this Act in the form of 

13 grants for operational purposes to State or local gov14 ernment agencies or other organizations, the agency 

15 or organization shall publish on the website Recov16 ery.gov a description of the intended use of the 

17 funds, including the number of jobs sustained or cre18 ated. 

19 (c) AVAILABILITY ON INTERNET OF CONTRACTS AND

20 GRANTS.—Each contract awarded or grant issued using 

21 funds made available in this Act shall be posted on the 

22 Internet and linked to the website Recovery.gov. Propri23 etary data that is required to be kept confidential under 

24 applicable Federal or State law or regulation shall be re25 dacted before posting. 


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1 SEC. 1202. INSPECTOR GENERAL REVIEWS. 

2 (a) REVIEWS.—Any inspector general of a Federal 

3 department or executive agency shall review, as appro4 priate, any concerns raised by the public about specific 

5 investments using funds made available in this Act. Any 

6 findings of an inspector general resulting from such a re7 view shall be relayed immediately to the head of each de8 partment and agency. In addition, the findings of such re9 views, along with any audits conducted by any inspector 

10 general of funds made available in this Act, shall be posted 

11 on the Internet and linked to the website Recovery.gov. 

12 (b) EXAMINATION OF RECORDS.—The Inspector 

13 General of the agency concerned may examine any records 

14 related to obligations of funds made available in this Act. 

15 SEC. 1203. GOVERNMENT ACCOUNTABILITY OFFICE RE16 VIEWS AND REPORTS. 

17 (a) REVIEWS AND REPORTS.—The Comptroller Gen18 eral of the United States shall conduct bimonthly reviews 

19 and prepare reports on such reviews on the use by selected 

20 States and localities of funds made available in this Act. 

21 Such reports, along with any audits conducted by the 

22 Comptroller General of such funds, shall be posted on the 

23 Internet and linked to the website Recovery.gov. 

24 (b) EXAMINATION OF RECORDS.—The Comptroller 

25 General may examine any records related to obligations 

26 of funds made available in this Act. 


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1 SEC. 1204. COUNCIL OF ECONOMIC ADVISERS REPORTS. 

2 The Chairman of the Council of Economic Advisers, 

3 in consultation with the Director of the Office of Manage4 ment and Budget and the Secretary of the Treasury, shall 

5 submit quarterly reports to Congress detailing the esti6 mated impact of programs under this Act on employment, 

7 economic growth, and other key economic indicators. 

8 SEC. 1205. SPECIAL CONTRACTING PROVISIONS. 

9 The Federal Acquisition Regulation shall apply to 

10 contracts awarded with funds made available in this Act. 

11 To the maximum extent possible, such contracts shall be 

12 awarded as fixed-price contracts through the use of com13 petitive procedures. Existing contracts so awarded may be 

14 utilized in order to obligate such funds expeditiously. Any 

15 contract awarded with such funds that is not fixed-price 

16 and not awarded using competitive procedures shall be 

17 posted in a special section of the website Recovery.gov. 

18 PART 2—ACCOUNTABILITY AND TRANSPARENCY 

19 BOARD 

20 SEC. 1221. ESTABLISHMENT OF THE ACCOUNTABILITY AND 

21 TRANSPARENCY BOARD. 

22 There is established a board to be known as the ‘‘Re23 covery Act Accountability and Transparency Board’’ 

24 (hereafter in this subtitle referred to as the ‘‘Board’’) to 

25 coordinate and conduct oversight of Federal spending 

26 under this Act to prevent waste, fraud, and abuse. 


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1 SEC. 1222. COMPOSITION OF BOARD. 

2 (a) MEMBERSHIP.—The Board shall be composed of 

3 seven members as follows: 

4 (1) The Chief Performance Officer of the Presi5 dent, who shall chair the Board. 

6 (2) Six members designated by the President 

7 from the inspectors general and deputy secretaries 

8 of the Departments of Education, Energy, Health 

9 and Human Services, Transportation, and other 

10 Federal departments and agencies to which funds 

11 are made available in this Act. 

12 (b) TERMS.—Each member of the Board shall serve 

13 for a term to be determined by the President. 

14 SEC. 1223. FUNCTIONS OF THE BOARD. 

15 (a) OVERSIGHT.—The Board shall coordinate and 

16 conduct oversight of spending under this Act to prevent 

17 waste, fraud, and abuse. In addition to responsibilities set 

18 forth in this subtitle, the responsibilities of the Board shall 

19 include the following: 

20 (1) Ensuring that the reporting of information 

21 regarding contract and grants under this Act meets 

22 applicable standards and specifies the purpose of the 

23 contract or grant and measures of performance. 

24 (2) Verifying that competition requirements ap25 plicable to contracts and grants under this Act and 

26 other applicable Federal law have been satisfied. 


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1 (3) Investigating spending under this Act to de2 termine whether wasteful spending, poor contract or 

3 grant management, or other abuses are occurring. 

4 (4) Reviewing whether there are sufficient 

5 qualified acquisition and grant personnel overseeing 

6 spending under this Act. 

7 (5) Reviewing whether acquisition and grant 

8 personnel receive adequate training and whether 

9 there are appropriate mechanisms for interagency 

10 collaboration. 

11 (b) REPORTS.— 

12 (1) FLASH AND OTHER REPORTS.—The Board 

13 shall submit to Congress reports, to be known as 

14 ‘‘flash reports’’, on potential management and fund15 ing problems that require immediate attention. The 

16 Board also shall submit to Congress such other re17 ports as the Board considers appropriate on the use 

18 and benefits of funds made available in this Act. 

19 (2) QUARTERLY.—The Board shall submit to 

20 the President and Congress quarterly reports sum21 marizing its findings and the findings of agency in22 spectors general and may issue additional reports as 

23 appropriate. 

24 (3) ANNUALLY.—On an annual basis, the 

25 Board shall prepare a consolidated report on the use 


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1 of funds under this Act. All reports shall be publicly 

2 available and shall be posted on the Internet website 

3 Recovery.gov, except that portions of reports may be 

4 redacted if the portions would disclose information 

5 that is protected from public disclosure under sec6 tion 552 of title 5, United States Code (popularly 

7 known as the Freedom of Information Act). 

8 (c) RECOMMENDATIONS TO AGENCIES.—The Board 

9 shall make recommendations to Federal agencies on meas10 ures to prevent waste, fraud, and abuse. A Federal agency 

11 shall, within 30 days after receipt of any such rec12 ommendation, submit to the Board, the President, and the 

13 congressional committees of jurisdiction a report on 

14 whether the agency agrees or disagrees with the rec15 ommendations and what steps, if any, the agency plans 

16 to take to implement the recommendations. 

17 SEC. 1224. POWERS OF THE BOARD. 

18 (a) COORDINATION OF AUDITS AND INVESTIGATIONS

19 BY AGENCY INSPECTORS GENERAL.—The Board shall co20 ordinate the audits and investigations of spending under 

21 this Act by agency inspectors general. 

22 (b) CONDUCT OF REVIEWS BY BOARD.—The Board 

23 may conduct reviews of spending under this Act and may 

24 collaborate on such reviews with any inspector general. 


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1 (c) MEETINGS.—The Board may, for the purpose of 

2 carrying out its duties under this Act, hold public meet3 ings, sit and act at times and places, and receive informa4 tion as the Board considers appropriate. The Board shall 

5 meet at least once a month. 

6 (d) OBTAINING OFFICIAL DATA.—The Board may 

7 secure directly from any department or agency of the 

8 United States information necessary to enable it to carry 

9 out its duties under this Act. Upon request of the Chair10 man of the Board, the head of that department or agency 

11 shall furnish that information to the Board. 

12 (e) CONTRACTS.—The Board may enter into con13 tracts to enable the Board to discharge its duties under 

14 this Act. 

15 SEC. 1225. STAFFING. 

16 (a) EXECUTIVE DIRECTOR.—The Chairman of the 

17 Board may appoint and fix the compensation of an execu18 tive director and other personnel as may be required to 

19 carry out the functions of the Board. The Director shall 

20 be paid at the rate of basic pay for level IV of the Execu21 tive Schedule. 

22 (b) STAFF OF FEDERAL AGENCIES.—Upon request 

23 of the Board, the head of any Federal department or agen24 cy may detail any Federal official or employee, including 

25 officials and employees of offices of inspector general, to 


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1 the Board without reimbursement from the Board, and 

2 such detailed staff shall retain the rights, status, and 

3 privileges of his or her regular employment without inter4 ruption. 

5 (c) OFFICE SPACE.—Office space shall be provided 

6 to the Board within the Executive Office of the President. 

7 SEC. 1226. RECOVERY.GOV. 

8 (a) REQUIREMENT TO ESTABLISH WEBSITE.—The 

9 Board shall establish and maintain a website on the Inter10 net to be named Recovery.gov, to foster greater account11 ability and transparency in the use of funds made avail12 able in this Act. 

13 (b) PURPOSE.—Recovery.gov shall be a portal or 

14 gateway to key information related to this Act and provide 

15 a window to other Government websites with related infor16 mation. 

17 (c) MATTERS COVERED.—In establishing the website 

18 Recovery.gov, the Board shall ensure the following: 

19 (1) The website shall provide materials explain20 ing what this Act means for citizens. The materials 

21 shall be easy to understand and regularly updated. 

22 (2) The website shall provide accountability in23 formation, including a database of findings from au24 dits, inspectors general, and the Government Ac25 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 funds made available in this 

5 Act. 

6 (4) The website shall provide detailed data on 

7 contracts awarded by the Government for purposes 

8 of carrying out this Act, including information about 

9 the competitiveness of the contracting process, noti10 fication of solicitations for contracts to be awarded, 

11 and information about the process that was used for 

12 the award of contracts. 

13 (5) The website shall include printable reports 

14 on funds made available in this Act obligated by 

15 month to each State and congressional district. 

16 (6) The website shall provide a means for the 

17 public to give feedback on the performance of con18 tracts awarded for purposes of carrying out this Act. 

19 (7) The website shall be enhanced and updated 

20 as necessary to carry out the purposes of this sub21 title. 

22 SEC. 1227. PRESERVATION OF THE INDEPENDENCE OF IN23 SPECTORS GENERAL. 

24 Inspectors general shall retain independent authority 

25 to determine whether to conduct an audit or investigation 


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1 of spending under this Act. If the Board requests that 

2 an inspector general conduct or refrain from conducting 

3 an audit or investigation and the inspector general rejects 

4 the request in whole or in part, the inspector general shall, 

5 within 30 days after receipt of the request, submit to the 

6 Board, the agency head, and the congressional committees 

7 of jurisdiction a report explaining why the inspector gen8 eral has rejected the request in whole or in part. 

9 SEC. 1228. COORDINATION WITH THE COMPTROLLER GEN10 ERAL AND STATE AUDITORS. 

11 The Board shall coordinate its oversight activities 

12 with the Comptroller General of the United States and 

13 State auditor generals. 

14 SEC. 1229. INDEPENDENT ADVISORY PANEL. 

15 (a) ESTABLISHMENT.—There is established a panel 

16 to be known as the ‘‘Independent Advisory Panel’’ to ad17 vise the Board. 

18 (b) MEMBERSHIP.—The Panel shall be composed of 

19 five members appointed by the President from among indi20 viduals with expertise in economics, public finance, con21 tracting, accounting, or other relevant fields. 

22 (c) FUNCTIONS.—The Panel shall make rec23 ommendations to the Board on actions the Board could 

24 take to prevent waste, fraud, and abuse in Federal spend25 ing under this Act. 


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1 (d) TRAVEL EXPENSES.—Each member of the Panel 

2 shall receive travel expenses, including per diem in lieu 

3 of subsistence, in accordance with applicable provisions 

4 under subchapter I of chapter 57 of title 5, United States 

5 Code. 

6 SEC. 1230. FUNDING. 

7 There is hereby appropriated to the Board 

8 $14,000,000 to carry out this subtitle. 

9 SEC. 1231. BOARD TERMINATION. 

10 The Board shall terminate 12 months after 90 per11 cent of the funds made available under this Act have been 

12 expended, as determined by the Director of the Office of 

13 Management and Budget. 

14 PART 3—ADDITIONAL ACCOUNTABILITY AND 

15 TRANSPARENCY PROVISIONS 

16 SEC. 1241. LIMITATION ON THE LENGTH OF CERTAIN NON17 COMPETITIVE CONTRACTS. 

18 No contract entered into using funds made available 

19 in this Act pursuant to the authority provided in section 

20 303(c)(2) of the Federal Property and Administrative 

21 Services Act of 1949 (41 U.S.C. 253(c)(2)) that is for an 

22 amount greater than the simplified acquisition threshold 

23 (as defined in section 4(11) of the Office of Federal Pro24 curement Policy Act (41 U.S.C. (4)(11))— 

25 (1) may exceed the time necessary— 


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1 (A) to meet the unusual and compelling re2 quirements of the work to be performed under 

3 the contract; and 

4 (B) for the executive agency to enter into 

5 another contract for the required goods or serv6 ices through the use of competitive procedures; 

7 and 

8 (2) may exceed one year unless the head of the 

9 executive agency entering into such contract deter10 mines that exceptional circumstances apply. 

11 SEC. 1242. ACCESS OF GOVERNMENT ACCOUNTABILITY OF12 FICE AND OFFICES OF INSPECTOR GENERAL 

13 TO CERTAIN EMPLOYEES. 

14 (a) ACCESS.—Each contract awarded using funds 

15 made available in this Act shall provide that the Comp16 troller General and his representatives, and any represent17 atives of an appropriate inspector general appointed under 

18 section 3 or 8G of the Inspector General Act of 1978 (5 

19 U.S.C. App.), are authorized— 

20 (1) to examine any records of the contractor or 

21 any of its subcontractors, or any State or local agen22 cy administering such contract, that directly pertain 

23 to, and involve transactions relating to, the contract 

24 or subcontract; and 


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1 (2) to interview any current employee regarding 

2 such transactions. 

3 (b) RELATIONSHIP TO EXISTING AUTHORITY.— 

4 Nothing in this section shall be interpreted to limit or re5 strict in any way any existing authority of the Comptroller 

6 General or an Inspector General. 

7 SEC. 1243. PROTECTING STATE AND LOCAL GOVERNMENT 

8 AND CONTRACTOR WHISTLEBLOWERS. 

9 (a) PROHIBITION OF REPRISALS.—An employee of 

10 any non-Federal employer receiving funds made available 

11 in this Act may not be discharged, demoted, or otherwise 

12 discriminated against as a reprisal for disclosing to the 

13 Board, an inspector general, the Comptroller General, a 

14 member of Congress, or a Federal agency head, or their 

15 representatives, information that the employee reasonably 

16 believes is evidence of— 

17 (1) gross mismanagement of an executive agen18 cy contract or grant; 

19 (2) a gross waste of executive agency funds; 

20 (3) a substantial and specific danger to public 

21 health or safety; or 

22 (4) a violation of law related to an executive 

23 agency contract (including the competition for or ne24 gotiation of a contract) or grant awarded or issued 

25 to carry out this Act. 


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1 (b) INVESTIGATION OF COMPLAINTS.— 

2 (1) A person who believes that the person has 

3 been subjected to a reprisal prohibited by subsection 

4 (a) may submit a complaint to the inspector general 

5 of the executive agency that awarded the contract or 

6 issued the grant. Unless the inspector general deter7 mines that the complaint is frivolous, the inspector 

8 general shall investigate the complaint and, upon 

9 completion of such investigation, submit a report of 

10 the findings of the investigation to the person, the 

11 person’s employer, the head of the Federal agency 

12 that awarded the contract or issued the grant, and 

13 the Board. 

14 (2)(A) Except as provided under subparagraph 

15 (B), the inspector general shall make a determina16 tion that a complaint is frivolous or submit a report 

17 under paragraph (1) within 180 days after receiving 

18 the complaint. 

19 (B) If the inspector general is unable to com20 plete an investigation in time to submit a report 

21 within the 180-day period specified in subparagraph 

22 (A) and the person submitting the complaint agrees 

23 to an extension of time, the inspector general shall 

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1 tween the inspector general and the person submit2 ting the complaint. 

3 (c) REMEDY AND ENFORCEMENT AUTHORITY.— 

4 (1) Not later than 30 days after receiving an 

5 inspector general report pursuant to subsection (b), 

6 the head of the agency concerned shall determine 

7 whether there is sufficient basis to conclude that the 

8 non-Federal employer has subjected the complainant 

9 to a reprisal prohibited by subsection (a) and shall 

10 either issue an order denying relief or shall take one 

11 or more of the following actions: 

12 (A) Order the employer to take affirmative 

13 action to abate the reprisal. 

14 (B) Order the employer to reinstate the 

15 person to the position that the person held be16 fore the reprisal, together with the compensa17 tion (including back pay), employment benefits, 

18 and other terms and conditions of employment 

19 that would apply to the person in that position 

20 if the reprisal had not been taken. 

21 (C) Order the employer to pay the com22 plainant an amount equal to the aggregate 

23 amount of all costs and expenses (including at24 torneys’ fees and expert witnesses’ fees) that 

25 were reasonably incurred by the complainant 


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1 for, or in connection with, bringing the com2 plaint regarding the reprisal, as determined by 

3 the head of the agency. 

4 (2) If the head of an executive agency issues an 

5 order denying relief under paragraph (1) or has not 

6 issued an order within 210 days after the submission 

7 of a complaint under subsection (b), or in the case 

8 of an extension of time under paragraph (b)(2)(B), 

9 not later than 30 days after the expiration of the ex10 tension of time, and there is no showing that such 

11 delay is due to the bad faith of the complainant, the 

12 complainant shall be deemed to have exhausted all 

13 administrative remedies with respect to the com14 plaint, and the complainant may bring a de novo ac15 tion at law or equity against the employer to seek 

16 compensatory damages and other relief available 

17 under this section in the appropriate district court 

18 of the United States, which shall have jurisdiction 

19 over such an action without regard to the amount in 

20 controversy. Such an action shall, at the request of 

21 either party to the action, be tried by the court with 

22 a jury. 

23 (3) An inspector general determination and an 

24 agency head order denying relief under paragraph 

25 (2) shall be admissible in evidence in any de novo 


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1 action at law or equity brought pursuant to this sub2 section. 

3 (4) Whenever a person fails to comply with an 

4 order issued under paragraph (1), the head of the 

5 agency shall file an action for enforcement of such 

6 order in the United States district court for a dis7 trict in which the reprisal was found to have oc8 curred. In any action brought under this paragraph, 

9 the court may grant appropriate relief, including in10 junctive relief and compensatory and exemplary 

11 damages. 

12 (5) Any person adversely affected or aggrieved 

13 by an order issued under paragraph (1) may obtain 

14 review of the order’s conformance with this sub15 section, and any regulations issued to carry out this 

16 section, in the United States court of appeals for a 

17 circuit in which the reprisal is alleged in the order 

18 to have occurred. No petition seeking such review 

19 may be filed more than 60 days after issuance of the 

20 order by the head of the agency. Review shall con21 form to chapter 7 of title 5. 

22 (d) CONSTRUCTION.—Nothing in this section may be 

23 construed to authorize the discharge of, demotion of, or 

24 discrimination against an employee for a disclosure other 

25 than a disclosure protected by subsection (a) or to modify 


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1 or derogate from a right or remedy otherwise available to 

2 the employee. 

3 (e) DEFINITIONS.— 

4 (1) NON-FEDERAL EMPLOYER RECEIVING

5 FUNDS UNDER THIS ACT.—The term ‘‘non-Federal 

6 employer receiving funds made available in this Act’’ 

7 means— 

8 (A) with respect to a Federal contract 

9 awarded or Federal grant issued to carry out 

10 this Act, the contractor or grantee, as the case 

11 may be, if the contractor or grantee is an em12 ployer; or 

13 (B) a State or local government, if the 

14 State or local government has received funds 

15 made available in this Act. 

16 (2) EXECUTIVE AGENCY.—The term ‘‘executive 

17 agency’’ has the meaning given that term in section 

18 4 of the Office of Federal Procurement Policy Act 

19 (41 U.S.C. 403). 

20 (3) STATE OR LOCAL GOVERNMENT.—The term 

21 ‘‘State or local government’’ means— 

22 (A) the government of each of the several 

23 States, the District of Columbia, the Common24 wealth of Puerto Rico, Guam, American Samoa, 

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1 lands, or any other territory or possession of 

2 the United States; or 

3 (B) the government of any political sub4 division of a government listed in subparagraph 

5 (A). 

6 TITLE II—AGRICULTURE, NUTRI7 TION, AND RURAL DEVELOP8 MENT 

9 DEPARTMENT OF AGRICULTURE 

10 AGRICULTURE BUILDINGS AND FACILITIES AND RENTAL

11 PAYMENTS

12 For an additional amount for ‘‘Agriculture Buildings 

13 and Facilities and Rental Payments’’, $44,000,000, for 

14 necessary construction, repair, and improvement activities: 

15 Provided, That section 1106 of this Act shall not apply 

16 to this appropriation. 

17 AGRICULTURAL RESEARCH SERVICE

18 BUILDINGS AND FACILITIES

19 For an additional amount for ‘‘Buildings and Facili20 ties’’, $209,000,000, for work on deferred maintenance at 

21 Agricultural Research Service facilities: Provided, That 

22 priority in the use of such funds shall be given to critical 

23 deferred maintenance, to projects that can be completed, 

24 and to activities that can commence promptly following 

25 enactment of this Act. 


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1 FARM SERVICE AGENCY

2 SALARIES AND EXPENSES

3 For an additional amount for ‘‘Salaries and Ex4 penses,’’ $245,000,000, for the purpose of maintaining 

5 and modernizing the information technology system: Pro6 vided, That section 1106 of this Act shall not apply to 

7 this appropriation. 

8 NATURAL RESOURCES CONSERVATION SERVICE

9 WATERSHED AND FLOOD PREVENTION OPERATIONS

10 For an additional amount for ‘‘Watershed and Flood 

11 Prevention Operations’’, $350,000,000, of which 

12 $175,000,000 is for necessary expenses to purchase and 

13 restore floodplain easements as authorized by section 403 

14 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) 

15 (except that no more than $50,000,000 of the amount pro16 vided for the purchase of floodplain easements may be ob17 ligated for projects in any one State): Provided, That sec18 tion 1106 of this Act shall not apply to this appropriation: 

19 Provided further, That priority in the use of such funds 

20 shall be given to projects that can be fully funded and 

21 completed with the funds appropriated in this Act, and 

22 to activities that can commence promptly following enact23 ment of this Act. 


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1 WATERSHED REHABILITATION PROGRAM

2 For an additional amount for ‘‘Watershed Rehabilita3 tion Program’’, $50,000,000, for necessary expenses to 

4 carry out rehabilitation of structural measures: Provided, 

5 That section 1106 of this Act shall not apply to this ap6 propriation: Provided further, That priority in the use of 

7 such funds shall be given to projects that can be fully 

8 funded and completed with the funds appropriated in this 

9 Act, and to activities that can commence promptly fol10 lowing enactment of this Act. 

11 RURAL DEVELOPMENT PROGRAMS

12 RURAL COMMUNITY ADVANCEMENT PROGRAM

13 (INCLUDING TRANSFERS OF FUNDS)

14 For an additional amount for gross obligations for 

15 the principal amount of direct and guaranteed loans as 

16 authorized by sections 306 and 310B and described in sec17 tions 381E(d)(1), 381E(d)(2), and 381E(d)(3) of the 

18 Consolidated Farm and Rural Development Act, to be 

19 available from the rural community advancement pro20 gram, as follows: $5,838,000,000, of which 

21 $1,102,000,000 is for rural community facilities direct 

22 loans, of which $2,000,000,000 is for business and indus23 try guaranteed loans, and of which $2,736,000,000 is for 

24 rural water and waste disposal direct loans. 


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

2 loan guarantees, and grants, including the cost of modi3 fying loans, as defined in section 502 of the Congressional 

4 Budget Act of 1974, as follows: $1,800,000,000, of which 

5 $63,000,000 is for rural community facilities direct loans, 

6 of which $137,000,000 is for rural community facilities 

7 grants authorized under section 306(a) of the Consoli8 dated Farm and Rural Development Act, of which 

9 $87,000,000 is for business and industry guaranteed 

10 loans, of which $13,000,000 is for rural business enter11 prise grants authorized under section 310B of the Consoli12 dated Farm and Rural Development Act, of which 

13 $400,000,000 is for rural water and waste disposal direct 

14 loans, and of which $1,100,000,000 is for rural water and 

15 waste disposal grants authorized under section 306(a): 

16 Provided, That the amounts appropriated under this head17 ing shall be transferred to, and merged with, the appro18 priation for ‘‘Rural Housing Service, Rural Community 

19 Facilities Program Account’’, the appropriation for 

20 ‘‘Rural Business-Cooperative Service, Rural Business Pro21 gram Account’’, and the appropriation for ‘‘Rural Utilities 

22 Service, Rural Water and Waste Disposal Program Ac23 count’’: Provided further, That priority for awarding such 

24 funds shall be given to project applications that dem25 onstrate that, if the application is approved, all project 


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1 elements will be fully funded: Provided further, That pri2 ority for awarding such funds shall be given to project ap3 plications for activities that can be completed if the re4 quested funds are provided: Provided further, That priority 

5 for awarding such funds shall be given to activities that 

6 can commence promptly following enactment of this Act. 

7 In addition to other available funds, the Secretary of 

8 Agriculture may use not more than 3 percent of the funds 

9 made available under this account for administrative costs 

10 to carry out loans, loan guarantees, and grants funded 

11 under this account, which shall be transferred and merged 

12 with the appropriation for ‘‘Rural Development, Salaries 

13 and Expenses’’ and shall remain available until September 

14 30, 2012: Provided, That the authority provided in this 

15 paragraph shall apply to appropriations under this head16 ing in lieu of the provisions of section 1106 of this Act. 

17 Funds appropriated by this Act to the Rural Commu18 nity Advancement Program for rural community facilities, 

19 rural business, and rural water and waste disposal direct 

20 loans, loan guarantees and grants may be transferred 

21 among these programs: Provided, That the Committees on 

22 Appropriations of the House of Representatives and the 

23 Senate shall be notified at least 15 days in advance of 

24 any transfer. 


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1 RURAL HOUSING SERVICE

2 RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

3 (INCLUDING TRANSFERS OF FUNDS)

4 For an additional amount of gross obligations for the 

5 principal amount of direct and guaranteed loans as au6 thorized by title V of the Housing Act of 1949, to be avail7 able from funds in the rural housing insurance fund, as 

8 follows: $22,129,000,000 for loans to section 502 bor9 rowers, of which $4,018,000,000 shall be for direct loans, 

10 and of which $18,111,000,000 shall be for unsubsidized 

11 guaranteed loans. 

12 For an additional amount for the cost of direct and 

13 guaranteed loans, including the cost of modifying loans, 

14 as defined in section 502 of the Congressional Budget Act 

15 of 1974, as follows: section 502 loans, $500,000,000, of 

16 which $270,000,000 shall be for direct loans, and of which 

17 $230,000,000 shall be for unsubsidized guaranteed loans. 

18 In addition to other available funds, the Secretary of 

19 Agriculture may use not more than 3 percent of the funds 

20 made available under this account for administrative costs 

21 to carry out loans and loan guarantees funded under this 

22 account, of which $1,750,000 will be committed to agency 

23 projects associated with maintaining the compliance, safe24 ty, and soundness of the portfolio of loans guaranteed 

25 through the section 502 guaranteed loan program: ProVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 vided, These funds shall be transferred and merged with 

2 the appropriation for ‘‘Rural Development, Salaries and 

3 Expenses’’: Provided further, That the authority provided 

4 in this paragraph shall apply to appropriations under this 

5 heading in lieu of the provisions of section 1106 of this 

6 Act. 

7 Funds appropriated by this Act to the Rural Housing 

8 Insurance Fund Program account for section 502 direct 

9 loans and unsubsidized guaranteed loans may be trans10 ferred between these programs: Provided, That the Com11 mittees on Appropriations of the House of Representatives 

12 and the Senate shall be notified at least 15 days in ad13 vance of any transfer. 

14 RURAL UTILITIES SERVICE

15 DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND

16 PROGRAM

17 (INCLUDING TRANSFERS OF FUNDS)

18 For an additional amount for the cost of broadband 

19 loans and loan guarantees, as authorized by the Rural 

20 Electrification Act of 1936 (7 U.S.C. 901 et seq.) and for 

21 grants, $2,825,000,000: Provided, That the cost of direct 

22 and guaranteed loans shall be as defined in section 502 

23 of the Congressional Budget Act of 1974: Provided fur24 ther, That, notwithstanding title VI of the Rural Elec25 trification Act of 1936, this amount is available for grants, 


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1 loans and loan guarantees for open access broadband in2 frastructure in any area of the United States: Provided 

3 further, That at least 75 percent of the area to be served 

4 by a project receiving funds from such grants, loans or 

5 loan guarantees shall be in a rural area without sufficient 

6 access to high speed broadband service to facilitate rural 

7 economic development, as determined by the Secretary of 

8 Agriculture: Provided further, That priority for awarding 

9 funds made available under this paragraph shall be given 

10 to projects that provide service to the most rural residents 

11 that do not have access to broadband service: Provided fur12 ther, That priority shall be given for project applications 

13 from borrowers or former borrowers under title II of the 

14 Rural Electrification Act of 1936 and for project applica15 tions that include such borrowers or former borrowers: 

16 Provided further, That notwithstanding section 1103 of 

17 this Act, 50 percent of the grants, loans, and loan guaran18 tees made available under this heading shall be awarded 

19 not later than September 30, 2009: Provided further, That 

20 priority for awarding such funds shall be given to project 

21 applications that demonstrate that, if the application is 

22 approved, all project elements will be fully funded: Pro23 vided further, That priority for awarding such funds shall 

24 be given to project applications for activities that can be 

25 completed if the requested funds are provided: Provided 


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1 further, That priority for awarding such funds shall be 

2 given to activities that can commence promptly following 

3 enactment of this Act: Provided further, That no area of 

4 a project funded with amounts made available under this 

5 paragraph may receive funding to provide broadband serv6 ice under the Broadband Deployment Grant Program: 

7 Provided further, That the Secretary shall submit a report 

8 on planned spending and actual obligations describing the 

9 use of these funds not later than 90 days after the date 

10 of enactment of this Act, and quarterly thereafter until 

11 all funds are obligated, to the Committees on Appropria12 tions of the House of Representatives and the Senate. 

13 In addition to other available funds, the Secretary 

14 may use not more than 3 percent of the funds made avail15 able under this account for administrative costs to carry 

16 out loans, loan guarantees, and grants funded under this 

17 account, which shall be transferred and merged with the 

18 appropriation for ‘‘Rural Development, Salaries and Ex19 penses’’ and shall remain available until September 30, 

20 2012: Provided, That the authority provided in this para21 graph shall apply to appropriations under this heading in 

22 lieu of the provisions of section 1106 of this Act. 


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1 FOOD AND NUTRITION SERVICE

2 SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR

3 WOMEN, INFANTS, AND CHILDREN (WIC)

4 For an additional amount for the special supple5 mental nutrition program as authorized by section 17 of 

6 the Child Nutrition Act of 1966 (42 U.S.C. 1786), 

7 $100,000,000, for the purposes specified in section 

8 17(h)(10)(B)(ii) for the Secretary of Agriculture to pro9 vide assistance to State agencies to implement new man10 agement information systems or improve existing manage11 ment information systems for the program. 

12 EMERGENCY FOOD ASSISTANCE PROGRAM

13 For an additional amount for the emergency food as14 sistance program as authorized by section 27(a) of the 

15 Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)) and 

16 section 204(a)(1) of the Emergency Food Assistance Act 

17 of 1983 (7 U.S.C. 7508(a)(1)), $150,000,000, of which 

18 $100,000,000 is for the purchase of commodities and of 

19 which $50,000,000 is for costs associated with the dis20 tribution of commodities. 

21 GENERAL PROVISIONS, THIS TITLE 

22 SEC. 2001. TEMPORARY INCREASE IN BENEFITS UNDER 

23 THE SUPPLEMENTAL NUTRITION ASSIST24 ANCE PROGRAM. 

25 (a) MAXIMUM BENEFIT INCREASE.— 


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

2 that begins not less than 25 days after the date of 

3 enactment of this Act, the value of benefits deter4 mined under section 8(a) of the Food and Nutrition 

5 Act of 2008 and consolidated block grants for Puer6 to Rico and American Samoa determined under sec7 tion 19(a) of such Act shall be calculated using 

8 113.6 percent of the June 2008 value of the thrifty 

9 food plan as specified under section 3(o) of such 

10 Act. 

11 (2) TERMINATION.— 

12 (A) The authority provided by this sub13 section shall terminate after September 30, 

14 2009. 

15 (B) Notwithstanding subparagraph (A), 

16 the Secretary of Agriculture may not reduce the 

17 value of the maximum allotment below the level 

18 in effect for fiscal year 2009 as a result of 

19 paragraph (1). 

20 (b) REQUIREMENTS FOR THE SECRETARY.—In car21 rying out this section, the Secretary shall— 

22 (1) consider the benefit increases described in 

23 subsection (a) to be a ‘‘mass change’’; 

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

25 households of the increase in benefits; 


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

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

3 to apply to any errors in the implementation of this 

4 section, without regard to the 120-day limit de5 scribed in that section; and 

6 (4) have the authority to take such measures as 

7 necessary to ensure the efficient administration of 

8 the benefits provided in this section. 

9 (c) ADMINISTRATIVE EXPENSES.— 

10 (1) IN GENERAL.—For the costs of State ad11 ministrative expenses associated with carrying out 

12 this section, the Secretary shall make available 

13 $150,000,000 in each of fiscal years 2009 and 2010, 

14 to remain available through September 30, 2012, of 

15 which $4,500,000 is for necessary expenses of the 

16 Food and Nutrition Service for management and 

17 oversight of the program and for monitoring the in18 tegrity and evaluating the effects of the payments 

19 made under this section. 

20 (2) AVAILABILITY OF FUNDS.—Funds described 

21 in paragraph (1) shall be made available as grants 

22 to State agencies based on each State’s share of 

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1 partment of Agriculture for the 12-month period 

2 ending with June, 2008. 

3 (d) TREATMENT OF JOBLESS WORKERS.—Beginning 

4 with the first month that begins not less than 25 days 

5 after the date of enactment of this Act, and for each sub6 sequent month through September 30, 2010, jobless 

7 adults who comply with work registration and employment 

8 and training requirements under section 6, section 20, or 

9 section 26 of the Food and Nutrition Act of 2008 (7 

10 U.S.C. 2015, 2029, or 2035) shall not be disqualified from 

11 the Supplemental Nutrition Assistance Program because 

12 of the provisions of section 6(o)(2) of such Act (7 U.S.C. 

13 2015(o)(2)). Beginning on October 1, 2010, for the pur14 poses of section 6(o), a State agency shall disregard any 

15 period during which an individual received Supplemental 

16 Nutrition Assistance Program benefits prior to October 1, 

17 2010. 

18 (e) FUNDING.—There is appropriated to the Sec19 retary of Agriculture such sums as are necessary to carry 

20 out this section, to remain available until expended. Sec21 tion 1106 of this Act shall not apply to this appropriation. 


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1 SEC. 2002. AFTERSCHOOL FEEDING PROGRAM FOR AT-RISK 

2 CHILDREN. 

3 Section 17(r) of the Richard B. Russell National 

4 School Lunch Act (42 U.S.C. 1766(r)) is amended by 

5 striking paragraph (5). 

6 TITLE III—COMMERCE, JUSTICE, 

7 AND SCIENCE 

8 Subtitle A—Commerce 

9 DEPARTMENT OF COMMERCE 

10 ECONOMIC DEVELOPMENT ADMINISTRATION

11 ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

12 (INCLUDING TRANSFER OF FUNDS) 

13 For an additional amount for ‘‘Economic Develop14 ment Assistance Programs’’, $250,000,000: Provided, 

15 That the amount set aside from this appropriation pursu16 ant to section 1106 of this Act shall not exceed 2 percent 

17 instead of the percentage specified in such section: Pro18 vided further, That the amount set aside pursuant to the 

19 previous proviso shall be transferred to and merged with 

20 the appropriation for ‘‘Salaries and Expenses’’ for pur21 poses of program administration and oversight: Provided 

22 further, That up to $50,000,000 may be transferred to 

23 federally authorized regional economic development com24 missions. 


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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: Provided, That section 1106 

5 of this Act shall not apply to funds provided under this 

6 heading. 

7 NATIONAL TELECOMMUNICATIONS AND INFORMATION

8 ADMINISTRATION

9 SALARIES AND EXPENSES

10 For an additional amount for ‘‘Salaries and Ex11 penses’’, $350,000,000, to remain available until Sep12 tember 30, 2011: Provided, That funds shall be available 

13 to establish the State Broadband Data and Development 

14 Grant Program, as authorized by Public Law 110–385, 

15 for the development and implementation of statewide ini16 tiatives to identify and track the availability and adoption 

17 of broadband services within each State, and to develop 

18 and maintain a nationwide broadband inventory map, as 

19 authorized by section 6001 of division B of this Act. 

20 WIRELESS AND BROADBAND DEPLOYMENT GRANT

21 PROGRAMS

22 (INCLUDING TRANSFER OF FUNDS)

23 For necessary expenses related to the Wireless and 

24 Broadband Deployment Grant Programs established by 

25 section 6002 of division B of this Act, $2,825,000,000, 


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1 of which $1,000,000,000 shall be for Wireless Deployment 

2 Grants and $1,825,000,000 shall be for Broadband De3 ployment Grants: Provided, That the National Tele4 communications and Information Administration shall 

5 submit a report on planned spending and actual obliga6 tions describing the use of these funds not later than 120 

7 days after the date of enactment of this Act, and an up8 date report not later than 60 days following the initial re9 port, to the Committees on Appropriations of the House 

10 of Representatives and the Senate, the Committee on En11 ergy and Commerce of the House of Representatives, and 

12 the Committee on Commerce, Science, and Transportation 

13 of the Senate: Provided further, That notwithstanding sec14 tion 1103 of this Act, 50 percent of the grants made avail15 able under this heading shall be awarded not later than 

16 September 30, 2009: Provided further, That up to 20 per17 cent of the funds provided under this heading for Wireless 

18 Deployment Grants and Broadband Deployment Grants 

19 may be transferred between these programs: Provided fur20 ther, That the Committees on Appropriations of the House 

21 of Representatives and the Senate shall be notified at least 

22 15 days in advance of any transfer. 

23 DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM

24 Notwithstanding any other provision of law, and in 

25 addition to amounts otherwise provided in any other Act, 


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1 for costs associated with the Digital-to-Analog Converter 

2 Box Program, $650,000,000, to be available until Sep3 tember 30, 2009: Provided, That these funds shall be 

4 available for coupons and related activities, including but 

5 not limited to education, consumer support and outreach, 

6 as deemed appropriate and necessary to ensure a timely 

7 conversion of analog to digital television. 

8 NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

9 SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES

10 For an additional amount for ‘‘Scientific and Tech11 nical Research and Services’’, $100,000,000. 

12 INDUSTRIAL TECHNOLOGY SERVICES

13 For an additional amount for ‘‘Industrial Technology 

14 Services’’, $100,000,000, of which $70,000,000 shall be 

15 available for the necessary expenses of the Technology In16 novation Program and $30,000,000 shall be available for 

17 the necessary expenses of the Hollings Manufacturing Ex18 tension Partnership. 

19 CONSTRUCTION OF RESEARCH FACILITIES

20 For an additional amount for ‘‘Construction of Re21 search Facilities’’, as authorized by sections 13 through 

22 15 of the Act of March 13, 1901 (15 U.S.C. 278c–278e), 

23 $300,000,000, for a competitive construction grant pro24 gram for research science buildings: Provided further, 

25 That for peer-reviewed grants made under this heading, 


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1 the time limitation provided in section 1103(b) of this Act 

2 shall be 120 days. 

3 NATIONAL OCEANIC AND ATMOSPHERIC

4 ADMINISTRATION

5 OPERATIONS, RESEARCH, AND FACILITIES

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

7 and Facilities’’, $400,000,000, for habitat restoration and 

8 mitigation activities. 

9 PROCUREMENT, ACQUISITION AND CONSTRUCTION

10 For an additional amount for ‘‘Procurement, Acquisi11 tion and Construction’’, $600,000,000, for accelerating 

12 satellite development and acquisition, acquiring climate 

13 sensors and climate modeling capacity, and establishing 

14 climate data records: Provided further, That not less than 

15 $140,000,000 shall be available for climate data modeling. 

16 Subtitle B—Justice 

17 DEPARTMENT OF JUSTICE 

18 STATE AND LOCAL LAW ENFORCEMENT ACTIVITIES

19 OFFICE OF JUSTICE PROGRAMS

20 STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

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

22 Enforcement Assistance’’, $3,000,000,000, to be available 

23 for the Edward Byrne Memorial Justice Assistance Grant 

24 Program as authorized by subpart 1 of part E of title I 

25 of the Omnibus Crime Control and Safe Streets Act of 


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1 1968, (except that section 1001(c), and the special rules 

2 for Puerto Rico under section 505(g), of such Act shall 

3 not apply for purposes of this Act): Provided, That section 

4 1106 of this Act shall not apply to funds provided under 

5 this heading. 

6 COMMUNITY ORIENTED POLICING SERVICES

7 For an additional amount for ‘‘Community Oriented 

8 Policing Services’’, $1,000,000,000, to be available for 

9 grants under section 1701 of title I of the 1968 Act (42 

10 U.S.C. 3796dd) for the hiring and rehiring of additional 

11 career law enforcement officers under part Q of such title 

12 notwithstanding subsection (i) of such section: Provided, 

13 That for peer-reviewed grants made under this heading, 

14 the time limitation provided in section 1103(b) of this Act 

15 shall be 120 days. 

16 Subtitle C—Science 

17 NATIONAL AERONAUTICS AND SPACE 

18 ADMINISTRATION 

19 SCIENCE

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

21 $400,000,000, of which not less than $250,000,000 shall 

22 be solely for accelerating the development of the tier 1 set 

23 of Earth science climate research missions recommended 

24 by the National Academies Decadal Survey. 


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1 AERONAUTICS

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

3 $150,000,000. 

4 CROSS AGENCY SUPPORT PROGRAMS

5 For an additional amount for ‘‘Cross Agency Support 

6 Programs’’, for necessary expenses for restoration and 

7 mitigation of National Aeronautics and Space Administra8 tion owned infrastructure and facilities related to the con9 sequences of hurricanes, floods, and other natural disas10 ters occurring during 2008 for which the President de11 clared a major disaster under title IV of the Robert T. 

12 Stafford Disaster Relief and Emergency Assistance Act of 

13 1974, $50,000,000. 

14 NATIONAL SCIENCE FOUNDATION 

15 RESEARCH AND RELATED ACTIVITIES

16 For an additional amount for ‘‘Research and Related 

17 Activities’’, $2,500,000,000: Provided, That $300,000,000 

18 shall be available solely for the Major Research Instru19 mentation program and $200,000,000 shall be for activi20 ties authorized by title II of Public Law 100–570 for aca21 demic research facilities modernization: Provided, That for 

22 peer-reviewed grants made under this heading, the time 

23 limitation provided in section 1103(b) of this Act shall be 

24 120 days. 


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1 EDUCATION AND HUMAN RESOURCES

2 For an additional amount for ‘‘Education and 

3 Human Resources’’, $100,000,000: Provided, That 

4 $60,000,000 shall be for activities authorized by section 

5 7030 of Public Law 110–69 and $40,000,000 shall be for 

6 activities authorized by section 9 of the National Science 

7 Foundation Authorization Act of 2002 (42 U.S.C. 1862n). 

8 MAJOR RESEARCH EQUIPMENT AND FACILITIES

9 CONSTRUCTION

10 For an additional amount for ‘‘Major Research 

11 Equipment and Facilities Construction’’, $400,000,000, 

12 which shall be available only for approved projects. 

13 TITLE IV—DEFENSE 

14 DEPARTMENT OF DEFENSE 

15 FACILITY INFRASTRUCTURE INVESTMENTS, DEFENSE

16 For expenses, not otherwise provided for, to improve, 

17 repair and modernize Department of Defense facilities, re18 store and modernize Army barracks, and invest in the en19 ergy efficiency of Department of Defense facilities, 

20 $4,500,000,000, for Facilities Sustainment, Restoration 

21 and Modernization programs of the Department of De22 fense (including minor construction and major mainte23 nance and repair), which shall be available as follows: 

24 (1) ‘‘Operation and Maintenance, Army’’, 

25 $1,490,804,000. 


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1 (2) ‘‘Operation and Maintenance, Navy’’, 

2 $624,380,000. 

3 (3) ‘‘Operation and Maintenance, Marine 

4 Corps’’, $128,499,000. 

5 (4) ‘‘Operation and Maintenance, Air Force’’, 

6 $1,236,810,000. 

7 (5) ‘‘Defense Health Program’’, $454,658,000. 

8 (6) ‘‘Operation and Maintenance, Army Re9 serve’’, $110,899,000. 

10 (7) ‘‘Operation and Maintenance, Navy Re11 serve’’, $62,162,000. 

12 (8) ‘‘Operation and Maintenance, Marine Corps 

13 Reserve’’, $45,038,000. 

14 (9) ‘‘Operation and Maintenance, Air Force Re15 serve’’, $14,881,000. 

16 (10) ‘‘Operation and Maintenance, Army Na17 tional Guard’’, $302,700,000. 

18 (11) ‘‘Operation and Maintenance, Air National 

19 Guard’’, $29,169,000. 

20 ENERGY RESEARCH AND DEVELOPMENT, DEFENSE

21 For expenses, not otherwise provided for, for re22 search, development, test and evaluation programs for im23 provements in energy generation, transmission, regulation, 

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1 cles, and other military equipment, $350,000,000, which 

2 shall be available as follows: 

3 (1) ‘‘Research, Development, Test and Evalua4 tion, Army’’, $87,500,000. 

5 (2) ‘‘Research, Development, Test and Evalua6 tion, Navy’’, $87,500,000. 

7 (3) ‘‘Research, Development, Test and Evalua8 tion, Air Force’’, $87,500,000. 

9 (4) ‘‘Research, Development, Test and Evalua10 tion, Defense-Wide’’, $87,500,000 

11 TITLE V—ENERGY AND WATER 

12 DEPARTMENT OF THE ARMY 

13 CORPS OF ENGINEERS—CIVIL

14 CONSTRUCTION

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

16 $2,000,000,000: Provided, That section 102 of Public 

17 Law 109–103 (33 U.S.C. 2221) shall not apply to funds 

18 provided in this paragraph: Provided further, That not19 withstanding any other provision of law, funds provided 

20 in this paragraph shall not be cost shared with the Inland 

21 Waterways Trust Fund as authorized in Public Law 99– 

22 662: Provided further, That funds provided in this para23 graph may only be used for programs, projects or activities 

24 previously funded: Provided further, That the Corps of En25 gineers is directed to prioritize funding for activities based 


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1 on the ability to accelerate existing contracts or fully fund 

2 project elements and contracts for such elements in a time 

3 period of 2 years after the date of enactment of this Act 

4 giving preference to projects and activities that are labor 

5 intensive: Provided further, That funds provided in this 

6 paragraph shall be used for elements of projects, programs 

7 or activities that can be completed using funds provided 

8 herein: Provided further, That funds appropriated in this 

9 paragraph may be used by the Secretary of the Army, act10 ing through the Chief of Engineers, to undertake work au11 thorized to be carried out in accordance with one or more 

12 of section 14 of the Flood Control Act of 1946 (33 U.S.C. 

13 701r), section 205 of the Flood Control Act of 1948 (33 

14 U.S.C. 701s), section 206 of the Water Resources Devel15 opment Act of 1996 (33 U.S.C. 2330), and section 1135 

16 of the Water Resources Development Act of 1986 (33 

17 U.S.C. 2309a), notwithstanding the program cost limita18 tions set forth in those sections: Provided further, That 

19 the limitation concerning total project costs in section 902 

20 of the Water Resources Development Act of 1986, as 

21 amended (33 U.S.C. 2280), shall not apply during fiscal 

22 year 2009 to any project that received funds provided in 

23 this title: Provided further, That for projects that are 

24 being completed with funds appropriated in this Act that 

25 are otherwise expired or lapsed for obligation, expired or 


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1 lapsed funds appropriated in this Act may be used to pay 

2 the cost of associated supervision, inspection, overhead, 

3 engineering and design on those projects and on subse4 quent claims, if any: Provided further, That the Secretary 

5 of the Army shall submit a quarterly report to the Com6 mittees on Appropriations of the House of Representatives 

7 and the Senate detailing the allocation, obligation and ex8 penditures of these funds, beginning not later than 45 

9 days after enactment of this Act. 

10 MISSISSIPPI RIVER AND TRIBUTARIES

11 For an additional amount for ‘‘Mississippi River and 

12 Tributaries’’, $250,000,000: Provided, That funds pro13 vided in this paragraph may only be used for programs, 

14 projects, or activities previously funded: Provided further, 

15 That the Corps of Engineers is directed to prioritize fund16 ing for activities based on the ability to accelerate existing 

17 contracts or fully fund project elements and contracts for 

18 such elements in a time period of 2 years after the date 

19 of enactment of this Act giving preference to projects and 

20 activities that are labor intensive: Provided further, That 

21 funds provided in this paragraph shall be used for ele22 ments of projects, programs, or activities that can be com23 pleted using funds provided herein: Provided further, That 

24 for projects that are being completed with funds appro25 priated in this Act that are otherwise expired or lapsed 


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1 for obligation, expired or lapsed funds appropriated in this 

2 Act may be used to pay the cost of associated supervision, 

3 inspection, overhead, engineering and design on those 

4 projects and on subsequent claims, if any: Provided fur5 ther, That the Secretary of the Army shall submit a quar6 terly report to the Committees on Appropriations of the 

7 House of Representatives and the Senate detailing the al8 location, obligation and expenditures of these funds, begin9 ning not later than 45 days after enactment of this Act. 

10 OPERATION AND MAINTENANCE

11 For an additional amount for ‘‘Operation and Main12 tenance’’, $2,225,000,000: Provided, That the Corps of 

13 Engineers is directed to prioritize funding for activities 

14 based on the ability to accelerate existing contracts or fully 

15 fund project elements and contracts for such elements in 

16 a time period of 2 years after the date of enactment of 

17 this Act giving preference to projects and activities that 

18 are labor intensive: Provided further, That funds provided 

19 in this paragraph shall be used for elements of projects, 

20 programs, or activities that can be completed using funds 

21 provided herein: Provided further, That for projects that 

22 are being completed with funds appropriated in this Act 

23 that are otherwise expired or lapsed for obligation, expired 

24 or lapsed funds appropriated in this Act may be used to 

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1 head, engineering and design on those projects and on 

2 subsequent claims, if any: Provided further, That the Sec3 retary of the Army shall submit a quarterly report to the 

4 Committees on Appropriations of the House of Represent5 atives and the Senate detailing the allocation, obligation 

6 and expenditures of these funds, beginning not later than 

7 45 days after enactment of this Act. 

8 REGULATORY PROGRAM

9 For an additional amount for ‘‘Regulatory Program’’, 

10 $25,000,000. 

11 DEPARTMENT OF THE INTERIOR 

12 BUREAU OF RECLAMATION

13 WATER AND RELATED RESOURCES

14 For an additional amount for ‘‘Water and Related 

15 Resources’’, $500,000,000: Provided, That of the amount 

16 appropriated under this heading, not less than 

17 $126,000,000 shall be used for water reclamation and 

18 reuse projects authorized under title XVI of Public Law 

19 102–575: Provided further, That of the amount appro20 priated under this heading, not less than $80,000,000 

21 shall be used for rural water projects and these funds shall 

22 be expended primarily on water intake and treatment fa23 cilities of such projects: Provided further, That the costs 

24 of reimbursable activities, other than for maintenance and 

25 rehabilitation, carried out with funds made available under 


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1 this heading shall be repaid pursuant to existing authori2 ties and agreements: Provided further, That the costs of 

3 maintenance and rehabilitation activities carried out with 

4 funds provided in this Act shall be repaid pursuant to ex5 isting authority, except the length of repayment period 

6 shall be determined on needs-based criteria to be estab7 lished and adopted by the Commissioner of the Bureau 

8 of Reclamation, but in no case shall the repayment period 

9 exceed 25 years. 

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’’, $18,500,000,000, which shall be used 

15 as follows: 

16 (1) $2,000,000,000 shall be for expenses nec17 essary for energy efficiency and renewable energy re18 search, development, demonstration and deployment 

19 activities, to accelerate the development of tech20 nologies, to include advanced batteries, of which not 

21 less than $800,000,000 is for biomass and 

22 $400,000,000 is for geothermal technologies. 

23 (2) $500,000,000 shall be for expenses nec24 essary to implement the programs authorized under 


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1 part E of title III of the Energy Policy and Con2 servation Act (42 U.S.C. 6341 et seq.). 

3 (3) $1,000,000,000 shall be for the cost of 

4 grants to institutional entities for energy sustain5 ability and efficiency under section 399A of the En6 ergy Policy and Conservation Act (42 U.S.C. 

7 6371h–1). 

8 (4) $6,200,000,000 shall be for the Weatheriza9 tion Assistance Program under part A of title IV of 

10 the Energy Conservation and Production Act (42 

11 U.S.C. 6861 et seq.). 

12 (5) $3,500,000,000 shall be for Energy Effi13 ciency and Conservation Block Grants, for imple14 mentation of programs authorized under subtitle E 

15 of title V of the Energy Independence and Security 

16 Act of 2007 (42 U.S.C. 17151 et seq.). 

17 (6) $3,400,000,000 shall be for the State En18 ergy Program authorized under part D of title III 

19 of the Energy Policy and Conservation Act (42 

20 U.S.C. 6321). 

21 (7) $200,000,000 shall be for expenses nec22 essary to implement the programs authorized under 

23 section 131 of the Energy Independence and Secu24 rity Act of 2007 (42 U.S.C. 17011). 


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1 (8) $300,000,000 shall be for expenses nec2 essary to implement the program authorized under 

3 section 124 of the Energy Policy Act of 2005 (42 

4 U.S.C. 15821) and the Energy Star program. 

5 (9) $400,000,000 shall be for expenses nec6 essary to implement the program authorized under 

7 section 721 of the Energy Policy Act of 2005 (42 

8 U.S.C. 16071). 

9 (10) $1,000,000,000 shall be for expenses nec10 essary for the manufacturing of advanced batteries 

11 authorized under section 136(b)(1)(B) of the Energy 

12 Independence and Security Act of 2007 (42 U.S.C. 

13 17013(b)(1)(B)): 

14 Provided, That notwithstanding section 3304 of title 5, 

15 United States Code, and without regard to the provisions 

16 of sections 3309 through 3318 of such title 5, the Sec17 retary of Energy may, upon a determination that there 

18 is a severe shortage of candidates or a critical hiring need 

19 for particular positions, recruit and directly appoint highly 

20 qualified individuals into the competitive service: Provided 

21 further, That such authority shall not apply to positions 

22 in the Excepted Service or the Senior Executive Service: 

23 Provided further, That any action authorized herein shall 

24 be consistent with the merit principles of section 2301 of 

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


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1 public notice requirements of section 3327 of such title 

2 5. 

3 ELECTRICITY DELIVERY AND ENERGY RELIABILITY

4 For an additional amount for ‘‘Electricity Delivery 

5 and Energy Reliability,’’ $4,500,000,000: Provided, That 

6 funds shall be available for expenses necessary for elec7 tricity delivery and energy reliability activities to mod8 ernize the electric grid, enhance security and reliability of 

9 the energy infrastructure, energy storage research, devel10 opment, demonstration and deployment, and facilitate re11 covery from disruptions to the energy supply, and for im12 plementation of programs authorized under title XIII of 

13 the Energy Independence and Security Act of 2007 (42 

14 U.S.C. 17381 et seq.): Provided further, That of such 

15 amounts, $100,000,000 shall be for worker training: Pro16 vided further, That the Secretary of Energy may use or 

17 transfer amounts provided under this heading to carry out 

18 new authority for transmission improvements, if such au19 thority is enacted in any subsequent Act, consistent with 

20 existing fiscal management practices and procedures. 

21 ADVANCED BATTERY LOAN GUARANTEE PROGRAM

22 For the cost of guaranteed loans as authorized by 

23 section 135 of the Energy Independence and Security Act 

24 of 2007 (42 U.S.C. 17012), $1,000,000,000, to remain 

25 available until expended: Provided, That of such amount, 


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1 $10,000,000 shall be used for administrative expenses in 

2 carrying out the guaranteed loan program, and shall be 

3 in lieu of the amount set aside under section 1106 of this 

4 Act: Provided further, That the cost of such loans, includ5 ing the cost of modifying such loans, shall be as defined 

6 in section 502 of the Congressional Budget Act of 1974. 

7 INSTITUTIONAL LOAN GUARANTEE PROGRAM

8 For the cost of guaranteed loans as authorized by 

9 section 399A of the Energy Policy and Conservation Act 

10 (42 U.S.C. 6371h–1), $500,000,000: Provided, That of 

11 such amount, $10,000,000 shall be used for administra12 tive expenses in carrying out the guaranteed loan pro13 gram, and shall be in lieu of the amount set aside under 

14 section 1106 of this Act: Provided further, That the cost 

15 of such loans, including the cost of modifying such loans, 

16 shall be as defined in section 502 of the Congressional 

17 Budget Act of 1974. 

18 INNOVATIVE TECHNOLOGY LOAN GUARANTEE PROGRAM

19 For an additional amount for ‘‘Innovative Technology 

20 Loan Guarantee Program’’ for the cost of guaranteed 

21 loans authorized by section 1705 of the Energy Policy Act 

22 of 2005, $8,000,000,000: Provided, That of such amount, 

23 $25,000,000 shall be used for administrative expenses in 

24 carrying out the guaranteed loan program, and shall be 

25 in lieu of the amount set aside under section 1106 of this 


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1 Act: Provided further, That the cost of such loans, includ2 ing the cost of modifying such loans, shall be as defined 

3 in section 502 of the Congressional Budget Act of 1974. 

4 FOSSIL ENERGY

5 For an additional amount for ‘‘Fossil Energy’’, 

6 $2,400,000,000 for necessary expenses to demonstrate 

7 carbon capture and sequestration technologies as author8 ized under section 702 of the Energy Independence and 

9 Security Act of 2007. 

10 SCIENCE

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

12 $2,000,000,000: Provided, That of such amounts, not less 

13 than $400,000,000 shall be used for the Advanced Re14 search Projects Agency—Energy authorized under section 

15 5012 of the America COMPETES Act (42 U.S.C. 16538): 

16 Provided further, That of such amounts, not less than 

17 $100,000,000 shall be used for advanced scientific com18 puting. 

19 ENVIRONMENTAL AND OTHER DEFENSE 

20 ACTIVITIES 

21 DEFENSE ENVIRONMENTAL CLEANUP

22 For an additional amount for ‘‘Defense Environ23 mental Cleanup,’’ $500,000,000: Provided, That such 

24 amounts shall be used for elements of projects, programs, 


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1 or activities that can be completed using funds provided 

2 herein. 

3 GENERAL PROVISIONS, THIS TITLE 

4 SEC. 5001. WESTERN AREA POWER ADMINISTRATION BOR5 ROWING AUTHORITY. 

6 The Hoover Power Plant Act of 1984 (Public Law 

7 98–381) is amended by adding at the end the following: 

8 ‘‘TITLE III—BORROWING 

9 AUTHORITY 

10 ‘‘SEC. 301. WESTERN AREA POWER ADMINISTRATION BOR11 ROWING AUTHORITY. 

12 ‘‘(a) DEFINITIONS.—In this section— 

13 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis14 trator’ means the Administrator of the Western 

15 Area Power Administration. 

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

17 the Secretary of the Treasury. 

18 ‘‘(b) AUTHORITY.— 

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

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

21 (5)— 

22 ‘‘(A) the Western Area Power Administra23 tion may borrow funds from the Treasury; and 

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

25 appropriation and without fiscal year limitation, 


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1 loan to the Western Area Power Administra2 tion, on such terms as may be fixed by the Ad3 ministrator and the Secretary, such sums (not 

4 to exceed, in the aggregate (including deferred 

5 interest), $3,250,000,000 in outstanding repay6 able balances at any 1 time) as, in the judg7 ment of the Administrator, are from time to 

8 time required for the purpose of— 

9 ‘‘(i) constructing, financing, facili10 tating, or studying construction of new or 

11 upgraded electric power transmission lines 

12 and related facilities with at least 1 ter13 minus within the area served by the West14 ern Area Power Administration; and 

15 ‘‘(ii) delivering or facilitating the de16 livery of power generated by renewable en17 ergy resources constructed or reasonably 

18 expected to be constructed after the date 

19 of enactment of this section. 

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

21 charged in connection with any loan made pursuant 

22 to this subsection shall be fixed by the Secretary, 

23 taking into consideration market yields on out24 standing marketable obligations of the United States 

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


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

2 Administration may refinance loans taken pursuant 

3 to this section within the Treasury. 

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

5 permit other entities to participate in projects fi6 nanced under this section. 

7 ‘‘(5) CONGRESSIONAL REVIEW OF DISBURSE8 MENT.—Effective upon the date of enactment of this 

9 section, the Administrator shall have the authority 

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

11 the Administrator seeks to borrow funds above 

12 $1,750,000,000, the funds will be disbursed unless 

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

14 such request, a joint resolution that rescinds the re15 mainder of the balance of the borrowing authority 

16 provided in this section. 

17 ‘‘(c) TRANSMISSION LINE AND RELATED FACILITY

18 PROJECTS.— 

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

20 each transmission line and related facility project in 

21 which the Western Area Power Administration par22 ticipates pursuant to this section shall be treated as 

23 separate and distinct from— 

24 ‘‘(A) each other such project; and 


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1 ‘‘(B) all other Western Area Power Admin2 istration power and transmission facilities. 

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

4 Administration shall apply the proceeds from the use 

5 of the transmission capacity from an individual 

6 project under this section to the repayment of the 

7 principal and interest of the loan from the Treasury 

8 attributable to that project, after reserving such 

9 funds as the Western Area Power Administration 

10 determines are necessary— 

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

12 are provided; and 

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

14 maintaining the new project from which the 

15 revenues are derived. 

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

17 use of projects under this section shall be the only 

18 source of revenue for— 

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

20 the project; and 

21 ‘‘(B) payment of expenses for ancillary 

22 services and operation and maintenance. 

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

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1 tion to provide ancillary services to users of trans2 mission facilities developed under this section. 

3 ‘‘(d) CERTIFICATION.— 

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

5 the Western Area Power Administration participates 

6 pursuant to this section, the Administrator shall cer7 tify, prior to committing funds for any such project, 

8 that— 

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

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

11 system reliability or operations, or other statu12 tory obligations; and 

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

14 proceeds from the project shall be adequate to 

15 make repayment of the loan. 

16 ‘‘(2) FORGIVENESS OF BALANCES.— 

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

18 useful life of a project, there is a remaining bal19 ance owed to the Treasury under this section, 

20 the balance shall be forgiven. 

21 ‘‘(B) UNCONSTRUCTED PROJECTS.—Funds 

22 expended to study projects that are considered 

23 pursuant to this section but that are not con24 structed shall be forgiven. 


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1 ‘‘(C) NOTIFICATION.—The Administrator 

2 shall notify the Secretary of such amounts as 

3 are to be forgiven under this paragraph. 

4 ‘‘(e) PUBLIC PROCESSES.— 

5 ‘‘(1) POLICIES AND PRACTICES.—Prior to re6 questing any loans under this section, the Adminis7 trator shall use a public process to develop practices 

8 and policies that implement the authority granted by 

9 this section. 

10 ‘‘(2) REQUESTS FOR INTERESTS.—In the 

11 course of selecting potential projects to be funded 

12 under this section, the Administrator shall seek re13 quests for interest from entities interested in identi14 fying potential projects through one or more notices 

15 published in the Federal Register.’’. 

16 SEC. 5002. BONNEVILLE POWER ADMINISTRATION. 

17 For the purposes of providing funds to assist in fi18 nancing the construction, acquisition, and replacement of 

19 the transmission system of the Bonneville Power Adminis20 tration and to implement the authority of the Adminis21 trator under the Pacific Northwest Electric Power Plan22 ning and Conservation Act (16 U.S.C. 839 et seq.), an 

23 additional $3,250,000,000 in borrowing authority is made 

24 available under the Federal Columbia River Transmission 


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

2 at any time. 

3 SEC. 5003. APPROPRIATIONS TRANSFER AUTHORITY. 

4 Not to exceed 20 percent of the amounts made avail5 able in this Act to the Department of Energy for ‘‘Energy 

6 Efficiency and Renewable Energy’’, ‘‘Electricity Delivery 

7 and Energy Reliability’’, and ‘‘Advanced Battery Loan 

8 Guarantee Program’’ may be transferred within and be9 tween such accounts, except that no amount specified 

10 under any such heading may be increased or decreased 

11 by more than a total of 20 percent by such transfers, and 

12 notification of such transfers shall be submitted promptly 

13 to the Committees on Appropriations of the House of Rep14 resentatives and the Senate. 

15 TITLE VI—FINANCIAL SERVICES 

16 AND GENERAL GOVERNMENT 

17 Subtitle A—General Services 

18 GENERAL SERVICES ADMINISTRATION

19 FEDERAL BUILDINGS FUND

20 LIMITATIONS ON AVAILABILITY OF REVENUE

21 (INCLUDING TRANSFER OF FUNDS)

22 For an additional amount to be deposited in the Fed23 eral Buildings Fund, $7,700,000,000 for real property ac24 tivities with priority given to activities that can commence 

25 promptly following enactment of this Act; of which up to 


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1 $1,000,000,000 shall be used for construction, repair, and 

2 alteration of border facilities and land ports of entry; of 

3 which not less than $6,000,000,000 shall be used for con4 struction, repair, and alteration of Federal buildings for 

5 projects that will create the greatest impact on energy effi6 ciency and conservation; of which $108,000,000 shall re7 main available until September 30, 2012, and shall be 

8 used for rental of space costs associated with the construc9 tion, repair, and alteration of these projects; Provided, 

10 That of the amounts provided, $160,000,000 shall remain 

11 available until September 30, 2012, and shall be for build12 ing operations in support of the activities described in this 

13 paragraph: Provided further, That the preceding proviso 

14 shall apply to this appropriation in lieu of the provisions 

15 of section 1106 of this Act: Provided further, That the Ad16 ministrator of General Services is authorized to initiate 

17 design, construction, repair, alteration, leasing, and other 

18 projects through existing authorities of the Administrator: 

19 Provided further, That the Administrator shall submit a 

20 detailed plan, by project, regarding the use of funds to 

21 the Committees on Appropriations of the House of Rep22 resentatives and the Senate within 30 days after enact23 ment of this Act, and shall provide notification to the 

24 Committees within 15 days prior to any changes regarding 

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1 istrator shall report to the Committees on the obligation 

2 of these funds on a quarterly basis beginning on June 30, 

3 2009: Provided further, That of the amounts provided, 

4 $4,000,000 shall be transferred to and merged with ‘‘Gov5 ernment-Wide Policy’’, for the Office of Federal High-Per6 formance Green Buildings as authorized in the Energy 

7 Independence and Security Act of 2007 (Public Law 110– 

8 140). 

9 ENERGY EFFICIENT FEDERAL MOTOR VEHICLE FLEET

10 PROCUREMENT

11 For capital expenditures and necessary expenses of 

12 the General Services Administration’s Motor Vehicle Ac13 quisition and Motor Vehicle Leasing programs for the ac14 quisition of motor vehicles, including plug-in and alter15 native fuel vehicles, $600,000,000: Provided, That the 

16 amount set aside from this appropriation pursuant to sec17 tion 1106 of this Act shall be 1 percent instead of the 

18 percentage specified in such section: Provided further, 

19 That none of these funds may be obligated until the Ad20 ministrator of General Services submits to the Committees 

21 on Appropriations of the House of Representatives and the 

22 Senate, within 90 days after enactment of this Act, a plan 

23 for expenditure of the funds that details the current inven24 tory of the Federal fleet owned by the General Services 

25 Administration, as well as other Federal agencies, and the 


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1 strategy to expend these funds to replace a portion of the 

2 Federal fleet with the goal of substantially increasing en3 ergy efficiency over the current status, including increas4 ing fuel efficiency and reducing emissions: Provided fur5 ther, That the Administrator shall report to the Commit6 tees on the obligation of these funds on a quarterly basis 

7 beginning on June 30, 2009. 

8 Subtitle B—Small Business 

9 SMALL BUSINESS ADMINISTRATION

10 BUSINESS LOANS PROGRAM ACCOUNT

11 (INCLUDING TRANSFERS OF FUNDS)

12 For the cost of direct loans and loan guarantees au13 thorized by sections 6202 through 6205 of this Act, 

14 $426,000,000: Provided, That such cost, including the 

15 cost of modifying such loans, shall be as defined in section 

16 502 of the Congressional Budget Act of 1974. In addition, 

17 for administrative expenses to carry out the direct loan 

18 and loan guarantee programs authorized by this Act, 

19 $4,000,000, which may be transferred to and merged with 

20 the appropriations for Salaries and Expenses: Provided, 

21 That this sentence shall apply to this appropriation in lieu 

22 of the provisions of section 1106 of this Act. 


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1 GENERAL PROVISIONS, THIS SUBTITLE 

2 SEC. 6201. ECONOMIC STIMULUS LENDING PROGRAM FOR 

3 SMALL BUSINESSES. 

4 (a) PURPOSE.—The purpose of this section is to per5 mit the Small Business Administration to guarantee up 

6 to 95 percent of qualifying small business loans made by 

7 eligible lenders. 

8 (b) DEFINITIONS.—For purposes of this section: 

9 (1) The term ‘‘Administrator’’ means the Ad10 ministrator of the Small Business Administration. 

11 (2) The term ‘‘qualifying small business loan’’ 

12 means any loan to a small business concern that 

13 would be eligible for a loan guarantee under section 

14 7(a) of the Small Business Act (15 U.S.C. 636) or 

15 title V of the Small Business Investment Act of 

16 1958 (15 U.S.C. 695 and following). 

17 (3) The term ‘‘small business concern’’ has the 

18 same meaning as provided by section 3 of the Small 

19 Business Act (15 U.S.C. 632). 

20 (c) APPLICATION.—In order to participate in the loan 

21 guarantee program under this section a lender shall sub22 mit an application to the Administrator for the guarantee 

23 of up to 95 percent of the principal amount of a qualifying 

24 small business loan. The Administrator shall approve or 

25 deny each such application within 5 business days after 


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1 receipt thereof. The Administrator may not delegate to 

2 lenders the authority to approve or disapprove such appli3 cations. 

4 (d) FEES.—The Administrator may charge fees for 

5 guarantees issued under this section. Such fees shall not 

6 exceed the fees permitted for loan guarantees under sec7 tion 7(a) of the Small Business Act (15 U.S.C. 631 and 

8 following). 

9 (e) INTEREST RATES.—The Administrator may not 

10 guarantee under this section any loan that bears interest 

11 at a rate higher than 3 percent above the higher of either 

12 of the following as quoted in the Wall Street Journal on 

13 the first business day of the week in which such guarantee 

14 is issued: 

15 (1) The London interbank offered rate 

16 (LIBOR) for a 3-month period. 

17 (2) The Prime Rate. 

18 (f) QUALIFIED BORROWERS.— 

19 (1) ALIENS UNLAWFULLY PRESENT IN THE

20 UNITED STATES.—A loan guarantee may not be 

21 made under this section for a loan made to a con22 cern if an individual who is an alien unlawfully 

23 present in the United States— 

24 (A) has an ownership interest in that con25 cern; or 


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1 (B) has an ownership interest in another 

2 concern that itself has an ownership interest in 

3 that concern. 

4 (2) FIRMS IN VIOLATION OF IMMIGRATION

5 LAWS.—No loan guarantee may be made under this 

6 section for a loan to any entity found, based on a 

7 determination by the Secretary of Homeland Secu8 rity or the Attorney General to have engaged in a 

9 pattern or practice of hiring, recruiting or referring 

10 for a fee, for employment in the United States an 

11 alien knowing the person is an unauthorized alien. 

12 (g) CRIMINAL BACKGROUND CHECKS.—Prior to the 

13 approval of any loan guarantee under this section, the Ad14 ministrator may verify the applicant’s criminal back15 ground, or lack thereof, through the best available means, 

16 including, if possible, use of the National Crime Informa17 tion Center computer system at the Federal Bureau of In18 vestigation. 

19 (h) APPLICATION OF OTHER LAW.—Nothing in this 

20 section shall be construed to exempt any activity of the 

21 Administrator under this section from the Federal Credit 

22 Reform Act of 1990 (title V of the Congressional Budget 

23 and Impoundment Control Act of 1974; 2 U.S.C. 661 and 

24 following). 


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1 (i) SUNSET.—Loan guarantees may not be issued 

2 under this section after the date 90 days after the date 

3 of establishment (as determined by the Administrator) of 

4 the economic recovery program under section 6204. 

5 (j) SMALL BUSINESS ACT PROVISIONS.—The provi6 sions of the Small Business Act applicable to loan guaran7 tees under section 7 of that Act shall apply to loan guaran8 tees under this section except as otherwise provided in this 

9 section. 

10 (k) AUTHORIZATION.—There are authorized to be ap11 propriated such sums as may be necessary to carry out 

12 this section. 

13 SEC. 6202. ESTABLISHMENT OF SBA SECONDARY MARKET 

14 LENDING AUTHORITY. 

15 (a) PURPOSE.—The purpose of this section is to pro16 vide the Small Business Administration with the authority 

17 to establish a Secondary Market Lending Authority within 

18 the SBA to make loans to the systemically important SBA 

19 secondary market broker-dealers who operate the SBA 

20 secondary market. 

21 (b) DEFINITIONS.—For purposes of this section: 

22 (1) The term ‘‘Administrator’’ means the Ad23 ministrator of the SBA. 

24 (2) The term ‘‘SBA’’ means the Small Business 

25 Administration. 


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1 (3) The terms ‘‘Secondary Market Lending Au2 thority’’ and ‘‘Authority’’ mean the office established 

3 under subsection (c). 

4 (4) The term ‘‘SBA secondary market’’ means 

5 the market for the purchase and sale of loans origi6 nated, underwritten, and closed under the Small 

7 Business Act. 

8 (5) The term ‘‘Systemically Important Sec9 ondary Market Broker-Dealers’’ mean those entities 

10 designated under subsection (c)(1) as vital to the 

11 continued operation of the SBA secondary market 

12 by reason of their purchase and sale of the govern13 ment guaranteed portion of loans, or pools of loans, 

14 originated, underwritten, and closed under the Small 

15 Business Act. 

16 (c) RESPONSIBILITIES, AUTHORITIES, ORGANIZA17 TION, AND LIMITATIONS.— 

18 (1) DESIGNATION OF SYSTEMICALLY IMPOR19 TANT SBA SECONDARY MARKET BROKER-DEAL20 ERS.—The Administrator shall establish a process to 

21 designate, in consultation with the Board of Gov22 ernors of the Federal Reserve and the Secretary of 

23 the Treasury, Systemically Important Secondary 

24 Market Broker-Dealers. 


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1 (2) ESTABLISHMENT OF SBA SECONDARY MAR2 KET LENDING AUTHORITY.— 

3 (A) ORGANIZATION.— 

4 (i) The Administrator shall establish 

5 within the SBA an office to provide loans 

6 to Systemically Important Secondary Mar7 ket Broker-dealers to be used for the pur8 pose of financing the inventory of the gov9 ernment guaranteed portion of loans, origi10 nated, underwritten, and closed under the 

11 Small Business Act or pools of such loans. 

12 (ii) The Administrator shall appoint a 

13 Director of the Authority who shall report 

14 to the Administrator. 

15 (iii) The Administrator is authorized 

16 to hire such personnel as are necessary to 

17 operate the Authority. 

18 (iv) The Administrator may contract 

19 such Authority operations as he determines 

20 necessary to qualified third-party compa21 nies or individuals. 

22 (v) The Administrator is authorized to 

23 contract with private sector fiduciary and 

24 custodial agents as necessary to operate 

25 the Authority. 


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1 (B) LOANS.— 

2 (i) The Administrator shall establish 

3 by rule a process under which Systemically 

4 Important SBA Secondary Market Broker5 Dealers designated under paragraph (1) 

6 may apply to the Administrator for loans 

7 under this section. 

8 (ii) The rule under clause (i) shall 

9 provide a process for the Administrator to 

10 consider and make decisions regarding 

11 whether or not to extend a loan applied for 

12 under this section. Such rule shall include 

13 provisions to assure each of the following: 

14 (I) That loans made under this 

15 section are for the sole purpose of fi16 nancing the inventory of the govern17 ment guaranteed portion of loans, 

18 originated, underwritten, and closed 

19 under the Small Business Act or pools 

20 of such loans. 

21 (II) That loans made under this 

22 section are fully collateralized to the 

23 satisfaction of the Administrator. 

24 (III) That there is no limit to the 

25 frequency in which a borrower may 


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1 borrow under this section unless the 

2 Administrator determines that doing 

3 so would create an undue risk of loss 

4 to the agency or the United States. 

5 (IV) That there is no limit on the 

6 size of a loan, subject to the discretion 

7 of the Administrator. 

8 (iii) Interest on loans under this sec9 tion shall not exceed the Federal Funds 

10 target rate as established by the Federal 

11 Reserve Board of Governors plus 25 basis 

12 points. 

13 (iv) The rule under this section shall 

14 provide for such loan documents, legal cov15 enants, collateral requirements and other 

16 required documentation as necessary to 

17 protect the interests of the agency, the 

18 United States, and the taxpayer. 

19 (v) The Administrator shall establish 

20 custodial accounts to safeguard any collat21 eral pledged to the SBA in connection with 

22 a loan under this section. 

23 (vi) The Administrator shall establish 

24 a process to disburse and receive funds to 

25 and from borrowers under this section. 


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1 (C) LIMITATIONS ON USE OF LOAN PRO2 CEEDS BY SYSTEMICALLY IMPORTANT SEC3 ONDARY MARKET BROKER-DEALERS.—The Ad4 ministrator shall ensure that borrowers under 

5 this section are using funds provided under this 

6 section only for the purpose specified in sub7 paragraph (B)(ii)(I). If the Administrator finds 

8 that such funds were used for any other pur9 pose, the Administrator shall— 

10 (i) require immediate repayment of 

11 outstanding loans; 

12 (ii) prohibit the borrower, its affili13 ates, or any future corporate manifestation 

14 of the borrower from using the Authority; 

15 and 

16 (iii) take any other actions the Ad17 ministrator, in consultation with the Attor18 ney General of the United States, deems 

19 appropriate. 

20 (d) REPORT TO CONGRESS.—The Administrator shall 

21 submit a report to Congress not later than the third busi22 ness day of each month containing a statement of each 

23 of the following: 

24 (1) The aggregate loan amounts extended dur25 ing the preceding month under this section. 


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1 (2) The aggregate loan amounts repaid under 

2 this section during the proceeding month. 

3 (3) The aggregate loan amount outstanding 

4 under this section. 

5 (4) The aggregate value of assets held as collat6 eral under this section. 

7 (5) The amount of any defaults or delinquencies 

8 on loans made under this section. 

9 (6) The identity of any borrower found by the 

10 Administrator to misuse funds made available under 

11 this section. 

12 (7) Any other information the Administrator 

13 deems necessary to fully inform Congress of undue 

14 risk of financial loss to the United States in connec15 tion with loans made under this section. 

16 (e) DURATION.—The authority of this section shall 

17 remain in effect for a period of 2 years after the date of 

18 enactment of this section. 

19 (f) FUNDING.—Such sums as necessary are author20 ized to be appropriated to carry out the provisions of this 

21 section. 

22 (g) BUDGET TREATMENT.—Nothing in this section 

23 shall be construed to exempt any activity of the Adminis24 trator under this section from the Federal Credit Reform 

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1 poundment Control Act of 1974; 2 U.S.C. 661 and fol2 lowing). 

3 (h) EMERGENCY RULEMAKING AUTHORITY.—The 

4 Administrator shall promulgate regulations under this sec5 tion within 15 days after the date of enactment of enact6 ment of this section. In promulgating these regulations, 

7 the Administrator the notice requirements of section 

8 553(b) of title 5 of the United States Code shall not apply. 

9 SEC. 6203. ESTABLISHMENT OF SBA SECONDARY MARKET 

10 GUARANTEE AUTHORITY. 

11 (a) PURPOSE.—The purpose of this section is to pro12 vide the Administrator with the authority to establish the 

13 SBA Secondary Market Guarantee Authority within the 

14 SBA to provide a Federal guarantee for pools of first lien 

15 504 loans that are to be sold to third-party investors. 

16 (b) DEFINITIONS.—For purposes of this section: 

17 (1) The term ‘‘Administrator’’ means the Ad18 ministrator of the Small Business Administration. 

19 (2) The term ‘‘first lien position 504 loan’’ 

20 means the first mortgage position, non-federally 

21 guaranteed loans made by private sector lenders 

22 made under title V of the Small Business Invest23 ment Act. 

24 (c) ESTABLISHMENT OF AUTHORITY.— 

25 (1) ORGANIZATION.— 


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1 (A) The Administrator shall establish a 

2 Secondary Market Guarantee Authority within 

3 the Small Business Administration. 

4 (B) The Administrator shall appoint a Di5 rector of the Authority who shall report to the 

6 Administrator. 

7 (C) The Administrator is authorized to 

8 hire such personnel as are necessary to operate 

9 the Authority and may contract such operations 

10 of the Authority as necessary to qualified third11 party companies or individuals. 

12 (D) The Administrator is authorized to 

13 contract with private sector fiduciary and custo14 dial agents as necessary to operate the Author15 ity. 

16 (2) GUARANTEE PROCESS.— 

17 (A) The Administrator shall establish, by 

18 rule, a process in which private sector entities 

19 may apply to the Administration for a Federal 

20 guarantee on pools of first lien position 504 

21 loans that are to be sold to third-party inves22 tors. 

23 (B) The Administrator shall appoint a Di24 rector of the Authority who shall report to the 

25 Administrator. 


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1 (C) The Administrator is authorized to 

2 hire such personnel as are necessary to operate 

3 the Authority and may contract such operations 

4 of the Authority as necessary to qualified third5 party companies or individuals. 

6 (D) The Administrator is authorized to 

7 contract with private sector fiduciary and custo8 dial agents as necessary to operate the Author9 ity. 

10 (3) RESPONSIBILITIES.— 

11 (A) The Administrator shall establish, by 

12 rule, a process in which private sector entities 

13 may apply to the SBA for a Federal guarantee 

14 on pools of first lien position 504 loans that are 

15 to be sold to third-party investors. 

16 (B) The rule under this section shall pro17 vide for a process for the Administrator to con18 sider and make decisions regarding whether to 

19 extend a Federal guarantee referred to in 

20 clause (i). Such rule shall also provide that: 

21 (i) The seller of the pools purchasing 

22 a guarantee under this section retains not 

23 less than 5 percent of the dollar amount of 

24 the pools to be sold to third-party inves25 tors. 


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1 (ii) The seller of such pools shall ab2 sorb any and all losses resulting from a 

3 shortage or excess of monthly cash flows. 

4 (iii) The Administrator shall receive a 

5 monthly fee of not more than 50 basis 

6 points on the outstanding balance of the 

7 dollar amount of the pools that are guar8 anteed. 

9 (iv) The Administrator may guarantee 

10 not more than $3,000,000,0000 of pools 

11 under this authority. 

12 (C) The Administrator shall establish doc13 uments, legal covenants, and other required 

14 documentation to protect the interests of the 

15 United States. 

16 (D) The Administrator shall establish a 

17 process to receive and disburse funds to entities 

18 under the authority established in this section. 

19 (d) LIMITATIONS.— 

20 (1) The Administrator shall ensure that entities 

21 purchasing a guarantee under this section are using 

22 such guarantee for the purpose of selling 504 first 

23 lien position pools to third-party investors. 


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1 (2) If the Administrator finds that any such 

2 guarantee was used for a purpose other than that 

3 specified in paragraph (1), the Administrator shall— 

4 (A) terminate such guarantee immediately, 

5 (B) prohibit the purchaser of the guar6 antee or its affiliates (within the meaning of the 

7 regulations under 13 CFR 121.103) from using 

8 the authority of this section in the future; and 

9 (C) take any other actions the Adminis10 trator, in consultation with the Attorney Gen11 eral of the United States deems appropriate. 

12 (e) OVERSIGHT.—The Administrator shall submit a 

13 report to Congress not later than the third business day 

14 of each month setting forth each of the following: 

15 (1) The aggregate amount of guarantees ex16 tended under this section during the proceeding 

17 month. 

18 (2) The aggregate amount of guarantees out19 standing. 

20 (3) Defaults and payments on defaults made 

21 under this section. 

22 (4) The identity of each purchaser of a guar23 antee found by the Administrator to have misused 

24 guarantees under this section. 


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1 (5) Any other information the Administrator 

2 deems necessary to fully inform Congress of undue 

3 risk to the United States associated with the 

4 issuance of guarantees under this section. 

5 (f) DURATION OF PROGRAM.—The authority of this 

6 section shall terminate on the date 2 years after the date 

7 of enactment of this section. 

8 (g) FUNDING.—Such sums as necessary are author9 ized to be appropriated to carry out the provisions of this 

10 section. 

11 (h) BUDGET TREATMENT.—Nothing in this section 

12 shall be construed to exempt any activity of the Adminis13 trator under this section from the Federal Credit Reform 

14 Act of 1990 (title V of the Congressional Budget and Im15 poundment Control Act of 1974; 2 U.S.C. 661 and fol16 lowing). 

17 (i) EMERGENCY RULEMAKING AUTHORITY.—The 

18 Administrator shall issue regulations under this section 

19 within 15 days after the date of enactment of this section. 

20 The notice requirements of section 553(b) of Title 5, 

21 United States Code shall not apply to the promulgation 

22 of such regulations. 


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1 SEC. 6204. ECONOMIC RECOVERY PROGRAM. 

2 (a) PURPOSE.—The purpose of this section is to es3 tablish a new lending and refinancing authority within the 

4 Small Business Administration. 

5 (b) DEFINITIONS.—For purposes of this section: 

6 (1) The term ‘‘Administrator’’ means the Ad7 ministrator of the Small Business Administration. 

8 (2) The term ‘‘small business concern’’ has the 

9 same meaning as provided by section 3 of the Small 

10 Business Act (15 U.S.C. 632). 

11 (c) REFINANCING AUTHORITY.— 

12 (1) IN GENERAL.—Upon application from a 

13 lender (and with consent of the borrower), the Ad14 ministrator may refinance existing non-Small Busi15 ness Administration or Small Business Administra16 tion loans (including loans under sections 7(a) and 

17 504 of the Small Business Act) made to small busi18 ness concerns. 

19 (2) ELIGIBLE LOANS.—In order to be eligible 

20 for refinancing under this section— 

21 (A) the amount of the loan refinanced may 

22 not exceed $10,000,000 and a first lien must be 

23 conveyed to the Administrator; 

24 (B) the lender shall offer to accept from 

25 the Administrator as full repayment of the loan 

26 an amount equal to less than 100 percent but 


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1 more than 85 percent of the remaining balance 

2 of the principal of the loan; and 

3 (C) the loan to be refinanced was made be4 fore the date of enactment of this Act and for 

5 a purpose that would have been eligible for a 

6 loan under any Small Business Administration 

7 lending program. 

8 (3) TERMS.—The term of the refinancing by 

9 the Administrator under this section shall not be 

10 less than remaining term on the loan that is refi11 nanced but shall not exceed a term of 20 years. The 

12 rate of interest on the loan refinanced under this 

13 section shall be fixed by the Administrator at a level 

14 that the Administrator determines will result in 

15 manageable monthly payments for the borrower. 

16 (4) LIMIT.—The Administrator may not refi17 nance amounts under this section that are greater 

18 than the amount the lender agrees to accept from 

19 the Administrator as full repayment of the loan as 

20 provided in paragraph (2)(B). 

21 (d) UNDERWRITING AND OTHER LOAN SERVICES.— 

22 (1) IN GENERAL.—The Administrator is au23 thorized to engage in underwriting, loan closing, 

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1 ness concerns and to guarantee loans made by other 

2 entities to small business concerns. 

3 (2) APPLICATION PROCESS.—The Adminis4 trator shall by rule establish a process in which 

5 small business concerns may submit applications to 

6 the Administrator for the purposes of securing a 

7 loan under this subsection. The Administrator shall, 

8 at a minimum, collect all information necessary to 

9 determine the creditworthiness and repayment abil10 ity of the borrower. 

11 (3) PARTICIPATION OF LENDERS.— 

12 (A) The Administrator shall by rule estab13 lish a process in which the Administrator makes 

14 available loan applications and all accom15 panying information to lenders for the purpose 

16 of such lenders originating, underwriting, clos17 ing, and servicing such loans. 

18 (B) Lenders are eligible to receive loan ap19 plications and accompanying information under 

20 this paragraph if they participate in the pro21 grams established in section 7(a) of the Small 

22 Business Act (15 U.S.C. 636) or title V of the 

23 Small Business Investment Act (15 U.S.C. 

24 695). 


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1 (C) The Administrator shall first make 

2 available such loan applications and accom3 panying information to lenders within 100 miles 

4 of a loan applicant’s principal office. 

5 (D) If a lender described in subparagraph 

6 (C) does not agree to originate, underwrite, 

7 close, and service such loans within 5 business 

8 days of receiving the loan applications, the Ad9 ministrator shall subsequently make available 

10 such loan applications and accompanying infor11 mation to lenders in the Preferred Lenders Pro12 gram under section 7(a)(2)(C)(ii) of the Small 

13 Business Act (15 U.S.C. 636). 

14 (E) If a lender described in subparagraph 

15 (C) or (D) does not agree to originate, under16 write, close, and service such loans within 10 

17 business days of receiving the loan applications, 

18 the Administrator may originate, underwrite, 

19 close, and service such loans as described in 

20 paragraph (1) of this subsection. 

21 (4) ASSET SALES.—The Administrator shall 

22 offer to sell loans made or refinanced by the Admin23 istrator under this section. Such sales shall be made 

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1 chase. The Administrator may contract with vendors 

2 for due diligence, asset valuation, and other services 

3 related to such sales. The Administrator may not 

4 sell any loan under this section for less than 90 per5 cent of the net present value of the loan, as deter6 mined and certified by a qualified third-party. 

7 (5) LOANS NOT SOLD.—The Administrator 

8 shall maintain and service loans made by the Admin9 istrator under this section that are not sold through 

10 the asset sales under this section. 

11 (e) DURATION.— The authority of this section shall 

12 terminate on the date two years after the date on which 

13 the program under this section becomes operational (as 

14 determined by the Administrator). 

15 (f) APPLICATION OF OTHER LAW.—Nothing in this 

16 section shall be construed to exempt any activity of the 

17 Administrator under this section from the Federal Credit 

18 Reform Act of 1990 (title V of the Congressional Budget 

19 and Impoundment Control Act of 1974; 2 U.S.C. 661 and 

20 following). 

21 (g) QUALIFIED LOANS.— 

22 (1) ALIENS UNLAWFULLY PRESENT IN THE

23 UNITED STATES.—A loan to any concern shall not 

24 be subject to this section if an individual who is an 

25 alien unlawfully present in the United States— 


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1 (A) has an ownership interest in that con2 cern; or 

3 (B) has an ownership interest in another 

4 concern that itself has an ownership interest in 

5 that concern. 

6 (2) FIRMS IN VIOLATION OF IMMIGRATION

7 LAWS.—No loan shall be subject to this section if 

8 the borrower is an entity found, based on a deter9 mination by the Secretary of Homeland Security or 

10 the Attorney General to have engaged in a pattern 

11 or practice of hiring, recruiting or referring for a 

12 fee, for employment in the United States an alien 

13 knowing the person is an unauthorized alien. 

14 (h) REPORTS.—The Administrator shall submit a re15 port to Congress semi-annually setting forth the aggregate 

16 amount of loans and geographic dispersion of such loans 

17 made, underwritten, closed, funded, serviced, sold, guaran18 teed, or held by the Administrator under the authority of 

19 this section. Such report shall also set forth information 

20 concerning loan defaults, prepayments, and recoveries re21 lated to loans ,made under the authority of this section. 

22 (i) AUTHORIZATION.—There are authorized to be ap23 propriated such sums as may be necessary to carry out 

24 this section. 


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1 SEC. 6205. STIMULUS FOR COMMUNITY DEVELOPMENT 

2 LENDING. 

3 (a) REFINANCING UNDER THE LOCAL DEVELOP4 MENT BUSINESS LOAN PROGRAM.—Section 502 of the 

5 Small Business Investment Act of 1958 (15 U.S.C. 696) 

6 is amended by adding at the end the following: 

7 ‘‘(7) PERMISSIBLE DEBT REFINANCING.— 

8 ‘‘(A) IN GENERAL.—Any financing ap9 proved under this title may include a limited 

10 amount of debt refinancing. 

11 ‘‘(B) EXPANSIONS.—If the project involves 

12 expansion of a small business concern which 

13 has existing indebtedness collateralized by fixed 

14 assets, any amount of existing indebtedness 

that does not exceed 1 15 ⁄2 of the project cost of 

16 the expansion may be refinanced and added to 

17 the expansion cost, if— 

18 ‘‘(i) the proceeds of the indebtedness 

19 were used to acquire land, including a 

20 building situated thereon, to construct a 

21 building thereon, or to purchase equip22 ment; 

23 ‘‘(ii) the borrower has been current on 

24 all payments due on the existing debt for 

25 not less than 1 year preceding the date of 

26 refinancing; and 


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1 ‘‘(iii) the financing under section 504 

2 will provide better terms or rate of interest 

3 than exists on the debt at the time of refi4 nancing.’’. 

5 (b) JOB CREATION GOALS.—Section 501(e)(1) and 

6 section 501(e)(2) of the Small Business Investment Act 

7 (15 U.S.C. 695) are each amended by striking ‘‘$50,000’’ 

8 and inserting ‘‘$65,000’’. 

9 SEC. 6206. INCREASING SMALL BUSINESS INVESTMENT. 

10 (a) SIMPLIFIED MAXIMUM LEVERAGE LIMITS.—Sec11 tion 303(b) of the Small Business Investment Act of 1958 

12 (15 U.S.C. 683(b)) is amended— 

13 (1) by striking so much of paragraph (2) as 

14 precedes subparagraphs (C) and (D) and inserting 

15 the following: 

16 ‘‘(2) MAXIMUM LEVERAGE.— 

17 ‘‘(A) IN GENERAL.—The maximum 

18 amount of outstanding leverage made available 

19 to any one company licensed under section 

20 301(c) of this Act may not exceed the lesser 

21 of— 

22 ‘‘(i) 300 percent of such company’s 

23 private capital; or 

24 ‘‘(ii) $150,000,000. 


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1 ‘‘(B) MULTIPLE LICENSES UNDER COM2 MON CONTROL.—The maximum amount of out3 standing leverage made available to two or more 

4 companies licensed under section 301(c) of this 

5 Act that are commonly controlled (as deter6 mined by the Administrator) and not under 

7 capital impairment may not exceed 

8 $225,000,000.’’; and 

9 (2) by striking paragraph (4). 

10 (b) SIMPLIFIED AGGREGATE INVESTMENT LIMITA11 TIONS.—Section 306(a) of the Small Business Investment 

12 Act of 1958 (15 U.S.C. 686(a)) is amended to read as 

13 follows: 

14 ‘‘(a) PERCENTAGE LIMITATION ON PRIVATE CAP15 ITAL.—If any small business investment company has ob16 tained financing from the Administrator and such financ17 ing remains outstanding, the aggregate amount of securi18 ties acquired and for which commitments may be issued 

19 by such company under the provisions of this title for any 

20 single enterprise shall not, without the approval of the Ad21 ministrator, exceed 10 percent of the sum of— 

22 ‘‘(1) the private capital of such company; and 

23 ‘‘(2) the total amount of leverage projected by 

24 the company in the company’s business plan that 


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1 was approved by the Administrator at the time of 

2 the grant of the company’s license.’’. 

3 SEC. 6207. GAO REPORT. 

4 (a) REPORT.—Not later than 30 days after the enact5 ment of this Act, the Comptroller General of the United 

6 States shall report to the Congress on the actions of the 

7 Administrator in implementing the authority established 

8 in sections 6201 through 6206 of this Act. 

9 (b) INCLUDED ITEM.—The report under this section 

10 shall include a summary of the activity of the Adminis11 trator under this section and an analysis of whether he 

12 is accomplishing the purpose of increasing liquidity in the 

13 secondary market for Small Business Administration 

14 loans. 

15 TITLE VII—HOMELAND 

16 SECURITY 

17 DEPARTMENT OF HOMELAND SECURITY 

18 U.S. CUSTOMS AND BORDER PROTECTION

19 SALARIES AND EXPENSES

20 For an additional amount for ‘‘Salaries and Ex21 penses’’, $100,000,000, for non-intrusive detection tech22 nology to be deployed at sea ports of entry. 


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1 CONSTRUCTION

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

3 $150,000,000, to repair and construct inspection facilities 

4 at land border ports of entry. 

5 TRANSPORTATION SECURITY ADMINISTRATION

6 AVIATION SECURITY

7 For an additional amount for ‘‘Aviation Security’’, 

8 $500,000,000, for the purchase and installation of explo9 sive detection systems and emerging checkpoint tech10 nologies: Provided, That the Assistant Secretary of Home11 land Security (Transportation Security Administration) 

12 shall prioritize the award of these funds to accelerate the 

13 installations at locations with completed design plans and 

14 to expeditiously award new letters of intent. 

15 COAST GUARD

16 ALTERATION OF BRIDGES

17 For an additional amount for ‘‘Alteration of 

18 Bridges’’, $150,000,000, for alteration or removal of ob19 structive bridges, as authorized by section 6 of the Tru20 man-Hobbs Act (33 U.S.C. 516): Provided, That the 

21 Coast Guard shall award these funds to those bridges that 

22 are ready to proceed to construction. 


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1 FEDERAL EMERGENCY MANAGEMENT AGENCY

2 EMERGENCY FOOD AND SHELTER

3 For an additional amount for ‘‘Emergency Food and 

4 Shelter’’, $200,000,000, to carry out the emergency food 

5 and shelter program pursuant to title III of the McKin6 ney-Vento Homeless Assistance Act (42 U.S.C. 11331 et 

7 seq.): Provided, That for the purposes of this appropria8 tion, the redistribution required by section 1104(b) shall 

9 be carried out by the Federal Emergency Management 

10 Agency and the National Board, who may reallocate and 

11 obligate any funds that are unclaimed or returned to the 

12 program: Provided further, That the amount set aside 

13 from this appropriation pursuant to section 1106 of this 

14 Act shall be 3.5 percent instead of the percentage specified 

15 in such section. 

16 GENERAL PROVISIONS, THIS TITLE 

17 SEC. 7001. EXTENSION OF PROGRAMS. 

18 Section 401(b) of the Illegal Immigration Reform and 

19 Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a 

20 note) is amended by striking ‘‘11-year period’’ and insert21 ing ‘‘16-year period’’. 

22 SEC. 7002. PROTECTION OF SOCIAL SECURITY ADMINIS23 TRATION PROGRAMS. 

24 (a) FUNDING UNDER AGREEMENT.—Effective for 

25 fiscal years beginning on or after October 1, 2008, the 


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1 Commissioner of Social Security and the Secretary of 

2 Homeland Security shall enter into and maintain an 

3 agreement which shall— 

4 (1) provide funds to the Commissioner for the 

5 full costs of the responsibilities of the Commissioner 

6 under section 404 of the Illegal Immigration Reform 

7 and Immigrant Responsibility Act of 1996 (8 U.S.C. 

8 1324a note), including (but not limited to)— 

9 (A) acquiring, installing, and maintaining 

10 technological equipment and systems necessary 

11 for the fulfillment of the responsibilities of the 

12 Commissioner under such section 404, but only 

13 that portion of such costs that are attributable 

14 exclusively to such responsibilities; and 

15 (B) responding to individuals who contest 

16 a tentative nonconfirmation provided by the 

17 basic pilot confirmation system established 

18 under such section; 

19 (2) provide such funds quarterly in advance of 

20 the applicable quarter based on estimating method21 ology agreed to by the Commissioner and the Sec22 retary (except in such instances where the delayed 

23 enactment of an annual appropriation may preclude 

24 such quarterly payments); and 


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1 (3) require an annual accounting and reconcili2 ation of the actual costs incurred and the funds pro3 vided under the agreement, which shall be reviewed 

4 by the Office of Inspector General of the Social Se5 curity Administration and the Department of Home6 land Security. 

7 (b) CONTINUATION OF EMPLOYMENT VERIFICATION

8 IN ABSENCE OF TIMELY AGREEMENT.—In any case in 

9 which the agreement required under subsection (a) for any 

10 fiscal year beginning on or after October 1, 2008, has not 

11 been reached as of October 1 of such fiscal year, the latest 

12 agreement between the Commissioner and the Secretary 

13 of Homeland Security providing for funding to cover the 

14 costs of the responsibilities of the Commissioner under 

15 section 404 of the Illegal Immigration Reform and Immi16 grant Responsibility Act of 1996 (8 U.S.C. 1324a note) 

17 shall be deemed in effect on an interim basis for such fis18 cal year until such time as an agreement required under 

19 subsection (a) is subsequently reached, except that the 

20 terms of such interim agreement shall be modified by the 

21 Director of the Office of Management and Budget to ad22 just for inflation and any increase or decrease in the vol23 ume of requests under the basic pilot confirmation system. 

24 In any case in which an interim agreement applies for any 

25 fiscal year under this subsection, the Commissioner and 


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1 the Secretary shall, not later than October 1 of such fiscal 

2 year, notify the Committee on Ways and Means, the Com3 mittee on the Judiciary, and the Committee on Appropria4 tions of the House of Representatives and the Committee 

5 on Finance, the Committee on the Judiciary, and the 

6 Committee on Appropriations of the Senate of the failure 

7 to reach the agreement required under subsection (a) for 

8 such fiscal year. Until such time as the agreement re9 quired under subsection (a) has been reached for such fis10 cal year, the Commissioner and the Secretary shall, not 

11 later than the end of each 90-day period after October 

12 1 of such fiscal year, notify such Committees of the status 

13 of negotiations between the Commissioner and the Sec14 retary in order to reach such an agreement. 

15 SEC. 7003. GAO STUDY OF BASIC PILOT CONFIRMATION 

16 SYSTEM. 

17 (a) IN GENERAL.—As soon as practicable after the 

18 date of the enactment of this Act, the Comptroller General 

19 of the United States shall conduct a study regarding erro20 neous tentative nonconfirmations under the basic pilot 

21 confirmation system established under section 404(a) of 

22 the Illegal Immigration Reform and Immigrant Responsi23 bility Act of 1996 (8 U.S.C. 1324a note). 


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1 (b) MATTERS TO BE STUDIED.—In the study re2 quired under subsection (a), the Comptroller General shall 

3 determine and analyze— 

4 (1) the causes of erroneous tentative noncon5 firmations under the basic pilot confirmation system; 

6 (2) the processes by which such erroneous ten7 tative nonconfirmations are remedied; and 

8 (3) the effect of such erroneous tentative non9 confirmations on individuals, employers, and Federal 

10 agencies. 

11 (c) REPORT.—Not later than 2 years after the date 

12 of the enactment of this Act, the Comptroller General shall 

13 submit the results of the study required under subsection 

14 (a) to the Committee on Ways and Means and the Com15 mittee on the Judiciary of the House of Representatives 

16 and the Committee on Finance and the Committee on the 

17 Judiciary of the Senate. 

18 SEC. 7004. GAO STUDY OF EFFECTS OF BASIC PILOT PRO19 GRAM ON SMALL ENTITIES. 

20 (a) IN GENERAL.—Not later than 2 years after the 

21 date of the enactment of this Act, the Comptroller General 

22 of the United States shall submit to the Committees on 

23 the Judiciary of the United States House of Representa24 tives and the Senate a report containing the Comptroller 

25 General’s analysis of the effects of the basic pilot program 


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1 described in section 403(a) of the Illegal Immigration Re2 form and Immigrant Responsibility Act of 1996 (8 U.S.C. 

3 1324a note) on small entities (as defined in section 601 

4 of title 5, United States Code). The report shall detail— 

5 (1) the costs of compliance with such program 

6 on small entities; 

7 (2) a description and an estimate of the number 

8 of small entities enrolled and participating in such 

9 program or an explanation of why no such estimate 

10 is available; 

11 (3) the projected reporting, recordkeeping and 

12 other compliance requirements of such program on 

13 small entities; 

14 (4) factors that impact small entities’ enroll15 ment and participation in such program, including 

16 access to appropriate technology, geography, entity 

17 size, and class of entity; and 

18 (5) the steps, if any, the Secretary of Homeland 

19 Security has taken to minimize the economic impact 

20 of participating in such program on small entities. 

21 (b) DIRECT AND INDIRECT EFFECTS.—The report 

22 shall cover, and treat separately, direct effects (such as 

23 wages, time, and fees spent on compliance) and indirect 

24 effects (such as the effect on cash flow, sales, and competi25 tiveness). 


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1 (c) SPECIFIC CONTENTS.—The report shall provide 

2 specific and separate details with respect to— 

3 (1) small businesses (as defined in section 601 

4 of title 5, United States Code) with fewer than 50 

5 employees; and 

6 (2) small entities operating in States that have 

7 mandated use of the basic pilot program. 

8 TITLE VIII—INTERIOR AND 

9 ENVIRONMENT 

10 DEPARTMENT OF THE INTERIOR 

11 BUREAU OF LAND MANAGEMENT

12 CONSTRUCTION

13 (INCLUDING TRANSFERS OF FUNDS)

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

15 $325,000,000, for priority road, bridge, and trail repair 

16 or decommissioning, critical deferred maintenance 

17 projects, facilities construction and renovation, hazardous 

18 fuels reduction, and remediation of abandoned mine or 

19 well sites: Provided, That funds may be transferred to 

20 other appropriate accounts of the Bureau of Land man21 agement: Provided further, That the amount set aside 

22 from this appropriation pursuant to section 1106 of this 

23 Act shall be not more than 5 percent instead of the per24 centage specified in such section. 


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1 UNITED STATES FISH AND WILDLIFE SERVICE

2 CONSTRUCTION

3 (INCLUDING TRANSFER OF FUNDS)

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

5 $300,000,000, for priority road and bridge repair and re6 placement, and critical deferred maintenance and improve7 ment projects on National Wildlife Refuges, National Fish 

8 Hatcheries, and other Service properties: Provided, That 

9 funds may be transferred to ‘‘Resource Management’’: 

10 Provided further, That the amount set aside from this ap11 propriation pursuant to section 1106 of this Act shall be 

12 not more than 5 percent instead of the percentage speci13 fied in such section. 

14 NATIONAL PARK SERVICE

15 CONSTRUCTION

16 (INCLUDING TRANSFER OF FUNDS)

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

18 $1,700,000,000, for projects to address critical deferred 

19 maintenance needs within the National Park System, in20 cluding roads, bridges and trails, and for other critical in21 frastructure projects: Provided, That funds may be trans22 ferred to ‘‘Operation of the National Park System’’: Pro23 vided further, That $200,000,000 of these funds shall be 

24 for projects related to the preservation and repair of his25 torical and cultural resources within the National Park 


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1 System: Provided further, That the amount set aside from 

2 this appropriation pursuant to section 1106 of this Act 

3 shall be not more than 5 percent instead of the percentage 

4 specified in such section. 

5 NATIONAL MALL REVITALIZATION FUND

6 For construction, improvements, repair, or replace7 ment of facilities related to the revitalization of National 

8 Park Service assets on the National Mall in Washington, 

9 DC, $200,000,000, of which $100,000,000 shall only be 

10 made available to the extent that funds are matched by 

11 non-Federal contributions: Provided, That the amount set 

12 aside from this appropriation pursuant to section 1106 of 

13 this Act shall be not more than 5 percent instead of the 

14 percentage specified in such section. 

15 CENTENNIAL CHALLENGE

16 To carry out provisions of section 814(g) of Public 

17 Law 104–333 relating to challenge cost share agreements, 

18 $100,000,000, for National Park Service Centennial Chal19 lenge signature projects and programs: Provided, That not 

20 less than 50 percent of the total cost of each project or 

21 program is derived from non-Federal sources in the form 

22 of donated cash, assets, in-kind services, or a pledge of 

23 donation guaranteed by an irrevocable letter of credit: Pro24 vided further, That the amount set aside from this appro25 priation pursuant to section 1106 of this Act shall be not 


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1 more than 5 percent instead of the percentage specified 

2 in such section. 

3 UNITED STATES GEOLOGICAL SURVEY

4 SURVEYS, INVESTIGATIONS, AND RESEARCH

5 For an additional amount for ‘‘Surveys, Investiga6 tions, and Research’’, $200,000,000, for repair and res7 toration of facilities; equipment replacement and upgrades 

8 including stream gages, and seismic and volcano moni9 toring systems; national map activities; and other critical 

10 deferred maintenance and improvement projects: Pro11 vided, That the amount set aside from this appropriation 

12 pursuant to section 1106 of this Act shall be not more 

13 than 5 percent instead of the percentage specified in such 

14 section. 

15 BUREAU OF INDIAN AFFAIRS

16 CONSTRUCTION

17 (INCLUDING TRANSFER OF FUNDS)

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

19 $500,000,000, for priority repair and replacement of 

20 schools, detention centers, roads, bridges, employee hous21 ing, and critical deferred maintenance projects: Provided, 

22 That not less than $250,000,000 shall be used for new 

23 and replacement schools and detention centers: Provided 

24 further, That funds may be transferred to ‘‘Operation of 

25 Indian Programs’’: Provided further, That the amount set 


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1 aside from this appropriation pursuant to section 1106 of 

2 this Act shall be not more than 5 percent instead of the 

3 percentage specified in such section. 

4 ENVIRONMENTAL PROTECTION AGENCY 

5 HAZARDOUS SUBSTANCE SUPERFUND

6 For an additional amount for ‘‘Hazardous Substance 

7 Superfund’’, $800,000,000, which shall be used for the 

8 Superfund Remedial program: Provided, That amounts 

9 available by law from this appropriation for management 

10 and administration shall take the place of the set-aside 

11 under section 1106 of this Act. 

12 LEAKING UNDERGROUND STORAGE TANK TRUST FUND

13 PROGRAM

14 For an additional amount for ‘‘Leaking Underground 

15 Storage Tank Trust Fund Program’’, to carry out leaking 

16 underground storage tank cleanup activities authorized by 

17 subtitle I of the Solid Waste Disposal Act, $200,000,000, 

18 which shall be used to carry out leaking underground stor19 age tank cleanup activities authorized by section 9003(h) 

20 of the Solid Waste Disposal Act, except that such funds 

21 shall not be subject to the State matching requirements 

22 in section 9003(h)(7)(B): Provided, That amounts avail23 able by law from this appropriation for management and 

24 administration shall take the place of the set-aside under 

25 section 1106 of this Act. 


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1 STATE AND TRIBAL ASSISTANCE GRANTS

2 For an additional amount for ‘‘State and Tribal As3 sistance Grants’’, $8,400,000,000, which shall be used as 

4 follows: 

5 (1) $6,000,000,000 shall be for capitalization 

6 grants for the Clean Water State Revolving Funds 

7 under title VI of the Federal Water Pollution Con8 trol Act (33 U.S.C. 1381 et seq.), except that such 

9 funds shall not be subject to the State matching re10 quirements in paragraphs (2) and (3) of section 

11 602(b) of such Act or to the Federal cost share limi12 tations in section 202 of such Act: Provided, That 

13 the amount set aside from this appropriation pursu14 ant to section 1106 of this Act shall be not more 

15 than 2 percent instead of the percentage specified in 

16 such section: Provided further, That, notwith17 standing the limitation on amounts specified in sec18 tion 518(c) of the Federal Water Pollution Control 

19 Act, up to a total of 1.5 percent of such funds may 

20 be reserved by the Administrator of the Environ21 mental Protection Agency for grants under section 

22 518(c) of such Act: Provided further, That the re23 quirements of section 513 of such Act shall apply to 

24 the construction of treatment works carried out in 

25 whole or in part with assistance made available 


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1 under this heading by a Clean Water State Revolv2 ing Fund under title VI of such Act, or with assist3 ance made available under section 205(m) of such 

4 Act, or both: Provided further, That, notwith5 standing the requirements of section 603(d) of such 

6 Act, each State shall use 50 percent of the amount 

7 of the capitalization grant received by the State 

8 under title VI of such Act to provide assistance, in 

9 the form of additional subsidization, including for10 giveness of principal, negative interest loans, and 

11 grants, to municipalities (as defined in section 502 

12 of such Act) for projects that are included on the 

13 State’s priority list established under section 603(g) 

14 of such Act, of which 80 percent shall be for projects 

15 to benefit municipalities that meet affordability cri16 teria as determined by the Governor of the State 

17 and 20 percent shall be for projects to address 

18 water-efficiency goals, address energy-efficiency 

19 goals, mitigate stormwater runoff, or encourage en20 vironmentally sensitive project planning, design, and 

21 construction, to the extent that there are sufficient 

22 project applications eligible for such assistance. 

23 (2) $2,000,000,000 shall be for capitalization 

24 grants for the Drinking Water State Revolving 

25 Funds under section 1452 of the Safe Drinking 


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1 Water Act (42 U.S.C. 300j–12), except that such 

2 funds shall not be subject to the State matching re3 quirements of section 1452(e) of such Act: Provided, 

4 That the amount set aside from this appropriation 

5 pursuant to section 1106 of this Act shall be not 

6 more than 2 percent instead of the percentage speci7 fied in such section: Provided further, That section 

8 1452(k) of the Safe Drinking Water Act shall not 

9 apply to such funds: Provided further, That the re10 quirements of section 1450(e) of such Act (42 

11 U.S.C. 300j–9(e)) shall apply to the construction 

12 carried out in whole or part with assistance made 

13 available under this heading by a Drinking Water 

14 State Revolving fund under section 1452 of such 

15 Act: Provided further, That, notwithstanding the re16 quirements of section 1452(a)(2) of such Act, each 

17 State shall use 50 percent of the amount of the cap18 italization grant received by the State under section 

19 1452 of such Act to provide assistance, in the form 

20 of additional subsidization, including forgiveness of 

21 principal, negative interest loans, and grants, to mu22 nicipalities (as defined in section 1401 of such Act) 

23 for projects that are included on the State’s priority 

24 list established under section 1452(b)(3) of such 

25 Act. 


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1 (3) $300,000,000 shall be for grants under title 

2 VII, Subtitle G of the Energy Policy Act of 2005: 

3 Provided, That the amount set aside from this ap4 propriation pursuant to section 1106 of this Act 

5 shall be not more than 3 percent instead of the per6 centage specified in such section. 

7 (4) $100,000,000 shall be to carry out section 

8 104(k) of the Comprehensive Environmental Re9 sponse, Compensation, and Liability Act of 1980: 

10 Provided, That the amount set aside from this ap11 propriation pursuant to section 1106 of this Act 

12 shall be not more than 3 percent instead of the per13 centage specified in such section. 

14 DEPARTMENT OF AGRICULTURE 

15 FOREST SERVICE

16 CAPITAL IMPROVEMENT AND MAINTENANCE

17 (INCLUDING TRANSFER OF FUNDS)

18 For an additional amount for ‘‘Capital Improvement 

19 and Maintenance’’, $650,000,000, for reconstruction, cap20 ital improvement, decommissioning, and maintenance of 

21 forest roads, bridges and trails; alternative energy tech22 nologies, energy efficiency enhancements and deferred 

23 maintenance at Federal facilities; and for remediation of 

24 abandoned mine sites, removal of fish passage barriers, 

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1 shed enhancement projects on Federal lands and waters: 

2 Provided, That funds may be transferred to ‘‘National 

3 Forest System’’: Provided further, That the amount set 

4 aside from this appropriation pursuant to section 1106 of 

5 this Act shall be not more than 5 percent instead of the 

6 percentage specified in such section. 

7 WILDLAND FIRE MANAGEMENT

8 (INCLUDING TRANSFERS OF FUNDS)

9 For an additional amount for ‘‘Wildland Fire Man10 agement’’, $850,000,000, of which $300,000,000 is for 

11 hazardous fuels reduction, forest health, wood to energy 

12 grants and rehabilitation and restoration activities on 

13 Federal lands, and of which $550,000,000 is for State fire 

14 assistance hazardous fuels projects, volunteer fire assist15 ance, cooperative forest health projects, city forest en16 hancements, and wood to energy grants on State and pri17 vate lands: Provided, That amounts in this paragraph may 

18 be transferred to ‘‘State and Private Forestry’’ and ‘‘Na19 tional Forest System’’: Provided further, That the amount 

20 set aside from this appropriation pursuant to section 1106 

21 of this Act shall be not more than 5 percent instead of 

22 the percentage specified in such section. 


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1 DEPARTMENT OF HEALTH AND HUMAN 

2 SERVICES 

3 INDIAN HEALTH SERVICE

4 INDIAN HEALTH FACILITIES

5 For an additional amount for ‘‘Indian Health Facili6 ties’’, $550,000,000, for priority health care facilities con7 struction projects and deferred maintenance, and the pur8 chase of equipment and related services, including but not 

9 limited to health information technology: Provided, That 

10 notwithstanding any other provision of law, the amounts 

11 available under this paragraph shall be allocated at the 

12 discretion of the Director of the Indian Health Service: 

13 Provided further, That the amount set aside from this ap14 propriation pursuant to section 1106 of this Act shall be 

15 not more than 5 percent instead of the percentage speci16 fied in such section. 

17 OTHER RELATED AGENCIES 

18 SMITHSONIAN INSTITUTION

19 FACILITIES CAPITAL

20 (INCLUDING TRANSFER OF FUNDS)

21 For an additional amount for ‘‘Facilities Capital’’, 

22 $150,000,000, for deferred maintenance projects, and for 

23 repair, revitalization, and alteration of facilities owned or 

24 occupied by the Smithsonian Institution, by contract or 

25 otherwise, as authorized by section 2 of the Act of August 


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1 22, 1949 (63 Stat. 623): Provided, That funds may be 

2 transferred to ‘‘Salaries and Expenses’’: Provided further, 

3 That the amount set aside from this appropriation pursu4 ant to section 1106 of this Act shall be not more than 

5 5 percent instead of the percentage specified in such sec6 tion. 

7 NATIONAL FOUNDATION ON THE ARTS AND THE

8 HUMANITIES

9 NATIONAL ENDOWMENT FOR THE ARTS

10 GRANTS AND ADMINISTRATION

11 For an additional amount for ‘‘Grants and Adminis12 tration’’, $50,000,000, to be distributed in direct grants 

13 to fund arts projects and activities which preserve jobs in 

14 the non-profit arts sector threatened by declines in philan15 thropic and other support during the current economic 

16 downturn: Provided, That 40 percent of such funds shall 

17 be distributed to State arts agencies and regional arts or18 ganizations in a manner similar to the agency’s current 

19 practice and 60 percent of such funds shall be for competi20 tively selected arts projects and activities according to sec21 tions 2 and 5(c) of the National Foundation on the Arts 

22 and Humanities Act of 1965 (20 U.S.C. 951, 954(c)): 

23 Provided further, That matching requirements under sec24 tion 5(e) of such Act shall be waived: Provided further, 

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1 ant to section 1106 of this Act shall be not more than 

2 5 percent instead of the percentage specified in such sec3 tion. 

4 TITLE IX—LABOR, HEALTH AND 

5 HUMAN SERVICES, AND EDU6 CATION 

7 Subtitle A—Labor 

8 DEPARTMENT OF LABOR 

9 EMPLOYMENT AND TRAINING ADMINISTRATION

10 TRAINING AND EMPLOYMENT SERVICES

11 For an additional amount for ‘‘Training and Employ12 ment Services’’ for activities under the Workforce Invest13 ment Act of 1998 (‘‘WIA’’), $4,000,000,000, which shall 

14 be available for obligation on the date of enactment of this 

15 Act, as follows: 

16 (1) $500,000,000 for grants to the States for 

17 adult employment and training activities; 

18 (2) $1,200,000,000 for grants to the States for 

19 youth activities, including summer jobs for youth: 

20 Provided, That the work readiness performance indi21 cator described in section 136(b)(2)(A)(ii)(I) of the 

22 WIA shall be the only measure of performance used 

23 to assess the effectiveness of summer jobs for youth 

24 provided with such funds: Provided further, That 

25 with respect to the youth activities provided with 


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1 such funds, section 101(13)(A) of the WIA shall be 

2 applied by substituting ‘‘age 24’’ for ‘‘age 21’’: Pro3 vided further, That no portion of the additional 

4 funds provided herein shall be reserved to carry out 

5 section 127(b)(1)(A) of the WIA: Provided further, 

6 That for purposes of section 127(b)(1)(C)(iv) of the 

7 WIA, such funds shall be allotted as if the total 

8 amount of funding available for youth activities in 

9 the fiscal year does not exceed $1,000,000,000; 

10 (3) $1,000,000,000 for grants to the States for 

11 dislocated worker employment and training activi12 ties; 

13 (4) $500,000,000 for the dislocated workers as14 sistance national reserve to remain available for 

15 Federal obligation through June 30, 2010: Provided, 

16 That such funds shall be made available for grants 

17 only to eligible entities that serve areas of high un18 employment or high poverty and only for the pur19 poses described in subsection 173(a)(1) of the WIA: 

20 Provided further, That the Secretary of Labor shall 

21 ensure that applicants for such funds demonstrate 

22 how income support, child care, and other supportive 

23 services necessary for an individual’s participation in 

24 job training will be provided; 


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1 (5) $50,000,000 for YouthBuild activities, 

2 which shall remain available for Federal obligation 

3 through June 30, 2010; and 

4 (6) $750,000,000 for a program of competitive 

5 grants for worker training and placement in high 

6 growth and emerging industry sectors: Provided, 

7 That $500,000,000 shall be for research, labor ex8 change and job training projects that prepare work9 ers for careers in the energy efficiency and renew10 able energy industries specified in section 

11 171(e)(1)(B)(ii) of the WIA (as amended by the 

12 Green Jobs Act of 2007): Provided further, That in 

13 awarding grants from those funds not designated in 

14 the preceding proviso, the Secretary of Labor shall 

15 give priority to projects that prepare workers for ca16 reers in the health care sector: Provided further, 

17 That the provisions of section 1103 of this Act shall 

18 not apply to this appropriation: 

19 Provided, That the additional funds provided to States 

20 under this heading are not subject to section 191(a) of 

21 the WIA: Provided further, That notwithstanding section 

22 1106 of this Act, there shall be no amount set aside from 

23 the appropriations made in subsections (1) through (3) 

24 under this heading and the amount set aside for subVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00125 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 sections (4) through (6) shall be up to 1 percent instead 

2 of the percentage specified in such section. 

3 COMMUNITY SERVICE EMPLOYMENT FOR OLDER

4 AMERICANS

5 For an additional amount for ‘‘Community Service 

6 Employment for Older Americans’’ to carry out title V of 

7 the Older Americans Act of 1965, $120,000,000, which 

8 shall be available for obligation on the date of enactment 

9 of this Act: Provided, That funds shall be allotted within 

10 30 days of such enactment to current grantees in propor11 tion to their allotment in program year 2008. 

12 STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT

13 SERVICE OPERATIONS

14 For an additional amount for ‘‘State Unemployment 

15 Insurance and Employment Service Operations’’ for 

16 grants to the States in accordance with section 6 of the 

17 Wagner-Peyser Act, $500,000,000, which may be ex18 pended from the Employment Security Administration Ac19 count in the Unemployment Trust Fund, and which shall 

20 be available for obligation on the date of enactment of this 

21 Act: Provided, That such funds shall remain available to 

22 the States through September 30, 2010: Provided further, 

23 That, with respect to such funds, section 6(b)(1) of such 

24 Act shall be applied by substituting ‘‘one-third’’ for ‘‘two25 thirds’’ in subparagraph (A), with the remaining one-third 


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1 of the sums to be allotted in accordance with section 

2 132(b)(2)(B)(ii)(III) of the Workforce Investment Act of 

3 1998: Provided further, That not less than $250,000,000 

4 of the amount provided under this heading shall be used 

5 by States for reemployment services for unemployment in6 surance claimants (including the integrated Employment 

7 Service and Unemployment Insurance information tech8 nology required to identify and serve the needs of such 

9 claimants): Provided further, That the Secretary of Labor 

10 shall establish planning and reporting procedures nec11 essary to provide oversight of funds used for reemploy12 ment services. 

13 DEPARTMENTAL MANAGEMENT

14 SALARIES AND EXPENSES

15 (INCLUDING TRANSFER OF FUNDS)

16 For an additional amount for ‘‘Departmental Man17 agement’’, $80,000,000, for the enforcement of worker 

18 protection laws and regulations, oversight, and coordina19 tion activities related to the infrastructure and unemploy20 ment insurance investments in this Act: Provided, That 

21 the Secretary of Labor may transfer such sums as nec22 essary to ‘‘Employment and Standards Administration’’, 

23 ‘‘Occupational Safety and Health Administration’’, and 

24 ‘‘Employment and Training Administration—Program 

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1 tion activities: Provided further, That the provisions of sec2 tion 1106 of this Act shall not apply to this appropriation. 

3 OFFICE OF JOB CORPS

4 For an additional amount for ‘‘Office of Job Corps’’, 

5 $300,000,000, for construction, rehabilitation and acquisi6 tion of Job Corps Centers, which shall be available upon 

7 the date of enactment of this Act and remain available 

8 for obligation through June 30, 2010: Provided, That sec9 tion 1552(a) of title 31, United States Code shall not 

10 apply to up to 30 percent of such funds, if such funds 

11 are used for a multi-year lease agreement that will result 

12 in construction activities that can commence within 120 

13 days of enactment of this Act: Provided further, That not14 withstanding section 3324(a) of title 31, United States 

15 Code, the funds referred to in the preceding proviso may 

16 be used for advance, progress, and other payments: Pro17 vided further, That the Secretary of Labor may transfer 

18 up to 15 percent of such funds to meet the operational 

19 needs of such centers, which may include the provision of 

20 additional training for careers in the energy efficiency and 

21 renewable energy industries: Provided further, That pri22 ority should be given to activities that can commence 

23 promptly following enactment and to those projects that 

24 will create the greatest impact on the energy efficiency of 

25 Job Corps facilities: Provided further, That the Secretary 


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1 shall provide to the Committees on Appropriations of the 

2 House of Representatives and the Senate a report on the 

3 actual obligations, expenditures, and unobligated balances 

4 for each activity funded under this heading not later than 

5 September 30, 2009 and quarterly thereafter as long as 

6 funding provided under this heading is available for obli7 gation or expenditure. 

8 GENERAL PROVISIONS, THIS SUBTITLE 

9 SEC. 9101. ELIGIBLE EMPLOYEES IN THE RECREATIONAL 

10 MARINE INDUSTRY. 

11 Section 2(3)(F) of the Longshore and Harbor Work12 ers’ Compensation Act (33 U.S.C. 902(3)(F)) is amend13 ed— 

14 (1) by striking ‘‘, repair, or dismantle’’; and 

15 (2) by striking the semicolon and inserting ‘‘, or 

16 individuals employed to repair any recreational ves17 sel, or to dismantle any part of a recreational vessel 

18 in connection with the repair of such vessel;’’. 

19 Subtitle B—Health and Human 

20 Services 

21 DEPARTMENT OF HEALTH AND HUMAN 

22 SERVICES 

23 HEALTH RESOURCES AND SERVICES

24 For an additional amount for ‘‘Health Resources and 

25 Services’’, $2,188,000,000 which shall be used as follows: 


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1 (1) $500,000,000, of which $250,000,000 shall 

2 not be available until October 1, 2009, shall be for 

3 grants to health centers authorized under section 

4 330 of the Public Health Service Act (‘‘PHS Act’’); 

5 (2) $1,000,000,000 shall be available for ren6 ovation and repair of health centers authorized 

7 under section 330 of the PHS Act and for the acqui8 sition by such centers of health information tech9 nology systems: Provided, That the timeframe for 

10 the award of grants pursuant to section 1103(b) of 

11 this Act shall not be later than 180 days after the 

12 date of enactment of this Act instead of the time13 frame specified in such section; 

14 (3) $88,000,000 shall be for fit-out and other 

15 costs related to moving into a facility to be secured 

16 through a competitive lease procurement to replace 

17 or renovate a headquarters building for Public 

18 Health Service agencies and other components of the 

19 Department of Health and Human Services; and 

20 (4) $600,000,000, of which $300,000,000 shall 

21 not be available until October 1, 2009, shall be for 

22 the training of nurses and primary care physicians 

23 and dentists as authorized under titles VII and VIII 

24 of the PHS Act, for the provision of health care per25 sonnel under the National Health Service Corps proVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00130 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 gram authorized under title III of the PHS Act, and 

2 for the patient navigator program authorized under 

3 title III of the PHS Act. 

4 CENTERS FOR DISEASE CONTROL AND PREVENTION

5 DISEASE CONTROL, RESEARCH, AND TRAINING

6 For an additional amount for ‘‘Disease Control, Re7 search, and Training’’ for equipment, construction, and 

8 renovation of facilities, including necessary repairs and 

9 improvements to leased laboratories, $462,000,000: Pro10 vided, That notwithstanding any other provision of law, 

11 the Centers for Disease Control and Prevention may 

12 award a single contract or related contracts for develop13 ment and construction of facilities that collectively include 

14 the full scope of the project: Provided further, That the 

15 solicitation and contract shall contain the clause ‘‘avail16 ability of funds’’ found at 48 CFR 52.232–18: Provided 

17 further, That in accordance with applicable authorities, 

18 policies, and procedures, the Centers for Disease Control 

19 and Prevention shall acquire real property, and make any 

20 necessary improvements thereon, to relocate and consoli21 date property and facilities of the National Institute for 

22 Occupational Safety and Health. 


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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’’, $1,500,000,000 for grants or con5 tracts under section 481A of the Public Health Service 

6 Act to renovate or repair existing non-Federal research fa7 cilities: Provided, That sections 481A(c)(1)(B)(ii), para8 graphs (1), (3), and (4) of section 481A(e), and section 

9 481B of such Act shall not apply to the use of such funds: 

10 Provided further, That the references to ‘‘20 years’’ in sub11 sections (c)(1)(B)(i) and (f) of section 481A of such Act 

12 are deemed to be references to ‘‘10 years’’ for purposes 

13 of using such funds: Provided further, That the National 

14 Center for Research Resources may also use such funds 

15 to provide, under the authority of section 301 and title 

16 IV of such Act, shared instrumentation and other capital 

17 research equipment to recipients of grants and contracts 

18 under section 481A of such Act and other appropriate en19 tities: Provided further, That the Director of the Center 

20 shall provide to the Committees on Appropriations of the 

21 House of Representatives and the Senate an annual report 

22 indicating the number of institutions receiving awards of 

23 a grant or contract under section 481A of such Act, the 

24 proposed use of the funding, the average award size, a 

25 list of grant or contract recipients, and the amount of each 


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1 award: Provided further, That the Center, in obligating 

2 such funds, shall require that each entity that applies for 

3 a grant or contract under section 481A for any project 

4 shall include in its application an assurance described in 

5 section 1621(b)(1)(I) of the Public Health Service Act: 

6 Provided further, That the Center shall give priority in the 

7 award of grants and contracts under section 481A of such 

8 Act to those applications that are expected to generate de9 monstrable energy-saving or beneficial environmental ef10 fects: Provided further, That the provisions of section 1103 

11 of this Act shall not apply to the peer-reviewed grants 

12 awarded under this heading. 

13 OFFICE OF THE DIRECTOR

14 (INCLUDING TRANSFER OF FUNDS)

15 For an additional amount for ‘‘Office of the Direc16 tor’’, $1,500,000,000, of which $750,000,000 shall not be 

17 available until October 1, 2009: Provided, That such funds 

18 shall be transferred to the Institutes and Centers of the 

19 National Institutes of Health and to the Common Fund 

20 established under section 402A(c)(1) of the Public Health 

21 Service Act in proportion to the appropriations otherwise 

22 made to such Institutes, Centers, and Common Fund for 

23 fiscal year 2009: Provided further, That these funds shall 

24 be used to support additional scientific research and shall 

25 be merged with and be available for the same purposes 


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1 as the appropriation or fund to which transferred: Pro2 vided further, That this transfer authority is in addition 

3 to any other transfer authority available to the National 

4 Institutes of Health: Provided further, That none of these 

5 funds may be transferred to ‘‘National Institutes of 

6 Health—Buildings and Facilities’’, the Center for Sci7 entific Review, the Center for Information Technology, the 

8 Clinical Center, the Global Fund for HIV/AIDS, Tuber9 culosis and Malaria, or the Office of the Director (except 

10 for the transfer to the Common Fund): Provided further, 

11 That the provisions of section 1103 of this Act shall not 

12 apply to the peer-reviewed grants awarded under this 

13 heading. 

14 BUILDINGS AND FACILITIES

15 For an additional amount for ‘‘Buildings and Facili16 ties’’, $500,000,000, to fund high priority repair and im17 provement projects for National Institutes of Health facili18 ties on the Bethesda, Maryland campus and other agency 

19 locations. 

20 AGENCY FOR HEALTHCARE RESEARCH AND QUALITY

21 HEALTHCARE RESEARCH AND QUALITY

22 (INCLUDING TRANSFER OF FUNDS)

23 For an additional amount for ‘‘Healthcare Research 

24 and Quality’’ to carry out titles III and IX of the Public 

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1 rity Act, and section 1013 of the Medicare Prescription 

2 Drug, Improvement, and Modernization Act of 2003, 

3 $700,000,000 for comparative effectiveness research: Pro4 vided, That of the amount appropriated in this paragraph, 

5 $400,000,000 shall be transferred to the Office of the Di6 rector of the National Institutes of Health (‘‘Office of the 

7 Director’’) to conduct or support comparative effectiveness 

8 research: Provided further, That funds transferred to the 

9 Office of the Director may be transferred to the national 

10 research institutes and national centers of the National 

11 Institutes of Health and to the Common Fund established 

12 under section 402A(c)(1) of the Public Health Service Act: 

13 Provided further, That this transfer authority is in addi14 tion to any other transfer authority available to the Na15 tional Institutes of Health: Provided further, That the pro16 visions of section 1103 of this Act shall not apply to the 

17 peer-reviewed grants awarded under this paragraph: Pro18 vided further, That the amount set aside from this appro19 priation pursuant to section 1106 of this Act shall be not 

20 more than 1 percent instead of the percentage specified 

21 in such section. 

22 In addition, $400,000,000 shall be available for com23 parative effectiveness research to be allocated at the dis24 cretion of the Secretary of Health and Human Services 

25 (‘‘Secretary’’): Provided, That the funding appropriated in 


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1 this paragraph shall be used to accelerate the development 

2 and dissemination of research assessing the comparative 

3 effectiveness of health care treatments and strategies, in4 cluding through efforts that: (1) conduct, support, or syn5 thesize research that compares the clinical outcomes, ef6 fectiveness, and appropriateness of items, services, and 

7 procedures that are used to prevent, diagnose, or treat dis8 eases, disorders, and other health conditions; and (2) en9 courage the development and use of clinical registries, clin10 ical data networks, and other forms of electronic health 

11 data that can be used to generate or obtain outcomes data: 

12 Provided further, That the Secretary shall enter into a 

13 contract with the Institute of Medicine, for which no more 

14 than $1,500,000 shall be made available from funds pro15 vided in this paragraph, to produce and submit a report 

16 to the Congress and the Secretary by not later than June 

17 30, 2009, that includes recommendations on the national 

18 priorities for comparative effectiveness research to be con19 ducted or supported with the funds provided in this para20 graph and that considers input from stakeholders: Pro21 vided further, That the Secretary shall consider any rec22 ommendations of the Federal Coordinating Council for 

23 Comparative Effectiveness Research established by section 

24 9201 of this Act and any recommendations included in 

25 the Institute of Medicine report pursuant to the preceding 


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1 proviso in designating activities to receive funds provided 

2 in this paragraph and may make grants and contracts 

3 with appropriate entities, which may include agencies 

4 within the Department of Health and Human Services and 

5 other governmental agencies, as well as private sector enti6 ties, that have demonstrated experience and capacity to 

7 achieve the goals of comparative effectiveness research: 

8 Provided further, That the Secretary shall publish infor9 mation on grants and contracts awarded with the funds 

10 provided under this heading within a reasonable time of 

11 the obligation of funds for such grants and contracts and 

12 shall disseminate research findings from such grants and 

13 contracts to clinicians, patients, and the general public, 

14 as appropriate: Provided further, That, to the extent fea15 sible, the Secretary shall ensure that the recipients of the 

16 funds provided by this paragraph offer an opportunity for 

17 public comment on the research: Provided further, That 

18 the provisions of section 1103 of this Act shall not apply 

19 to the peer-reviewed grants awarded under this paragraph: 

20 Provided further, That the Secretary shall provide the 

21 Committees on Appropriations of the House of Represent22 atives and the Senate, the Committee on Energy and Com23 merce and the Committee on Ways and Means of the 

24 House of Representatives, and the Committee on Health, 

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1 nance of the Senate with an annual report on the research 

2 conducted or supported through the funds provided under 

3 this heading: Provided further, That the Secretary, jointly 

4 with the Directors of the Agency for Healthcare Research 

5 and Quality and the National Institutes of Health, shall 

6 provide the Committees on Appropriations of the House 

7 of Representatives and the Senate a fiscal year 2009 oper8 ating plan for the funds appropriated under this heading 

9 prior to making any Federal obligations of such funds in 

10 fiscal year 2009, but not later than 90 days after the date 

11 of enactment of this Act, and a fiscal year 2010 operating 

12 plan for such funds prior to making any Federal obliga13 tions of such funds in fiscal year 2010, but not later than 

14 November 1, 2009, that detail the type of research being 

15 conducted or supported, including the priority conditions 

16 addressed; and specify the allocation of resources within 

17 the Department of Health and Human Services: Provided 

18 further, That the Secretary jointly with the Directors of 

19 the Agency for Healthcare Research and Quality and the 

20 National Institutes of Health, shall provide to the Com21 mittees on Appropriations of the House of Representatives 

22 and the Senate a report on the actual obligations, expendi23 tures, and unobligated balances for each activity funded 

24 under this heading not later than November 1, 2009, and 

25 every 6 months thereafter as long as funding provided 


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1 under this heading is available for obligation or expendi2 ture. 

3 ADMINISTRATION FOR CHILDREN AND FAMILIES

4 LOW-INCOME HOME ENERGY ASSISTANCE

5 For an additional amount for ‘‘Low-Income Home 

6 Energy Assistance’’ for making payments under section 

7 2602(b) and section 2602(d) of the Low-Income Home 

8 Energy Assistance Act of 1981, $1,000,000,000, which 

9 shall become available on October 1, 2009: Provided, That 

10 the provisions of section 1106 of this Act shall not apply 

11 to this appropriation. 

12 PAYMENTS TO STATES FOR THE CHILD CARE AND

13 DEVELOPMENT BLOCK GRANT

14 For an additional amount for ‘‘Payments to States 

15 for the Child Care and Development Block Grant’’, 

16 $2,000,000,000, of which $1,000,000,000 shall become 

17 available on October 1, 2009, which shall be used to sup18 plement, not supplant State general revenue funds for 

19 child care assistance for low-income families: Provided, 

20 That the provisions of section 1106 of this Act shall not 

21 apply to this appropriation. 

22 CHILDREN AND FAMILIES SERVICES PROGRAMS

23 For an additional amount for ‘‘Children and Families 

24 Services Programs’’, $3,200,000,000, which shall be used 

25 as follows: 


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1 (1) $1,000,000,000 for carrying out activities 

2 under the Head Start Act, of which $500,000,000 

3 shall become available on October 1, 2009; 

4 (2) $1,100,000,000 for expansion of Early 

5 Head Start programs, as described in section 645A 

6 of the Head Start Act, of which $550,000,000 shall 

7 become available on October 1, 2009: Provided, That 

8 of the funds provided in this sentence, up to 10 per9 cent shall be available for the provision of training 

10 and technical assistance to such programs consistent 

11 with section 645A(g)(2) of such Act, and up to 3 

12 percent shall be available for monitoring the oper13 ation of such programs consistent with section 641A 

14 of such Act: Provided further, That the preceding 

15 proviso shall apply to this appropriation in lieu of 

16 the provisions of section 1106 of this Act: Provided 

17 further, That the provisions of section 1103 of this 

18 Act shall not apply to this appropriation; 

19 (3) $1,000,000,000 for carrying out activities 

20 under sections 674 through 679 of the Community 

21 Services Block Grant Act, of which $500,000,000 

22 shall become available on October 1, 2009, and of 

23 which no part shall be subject to paragraphs (2) and 

24 (3) of section 674(b) of such Act: Provided, That 

25 notwithstanding section 675C(a)(1) of such Act, 100 


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1 percent of the funds made available to a State from 

2 this additional amount shall be distributed to eligible 

3 entities as defined in section 673(1) of such Act: 

4 Provided further, That for services furnished under 

5 such Act during fiscal years 2009 and 2010, States 

6 may apply the last sentence of section 673(2) of 

7 such Act by substituting ‘‘200 percent’’ for ‘‘125 

8 percent’’: Provided further, That the provisions of 

9 section 1106 of this Act shall not apply to this ap10 propriation; and 

11 (4) $100,000,000 for carrying out activities 

12 under section 1110 of the Social Security Act, of 

13 which $50,000,000 shall become available on Octo14 ber 1, 2009: Provided, That the Secretary of Health 

15 and Human Services shall distribute such amount 

16 under the Compassion Capital Fund to eligible faith17 based and community organizations: Provided fur18 ther, That the provisions of section 1106 of this Act 

19 shall not apply to this appropriation. 

20 ADMINISTRATION ON AGING

21 AGING SERVICES PROGRAMS

22 For an additional amount for ‘‘Aging Services Pro23 grams’’ under section 311, and subparts 1 and 2 of part 

24 C, of title III of the Older Americans Act of 1965, 

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1 able on October 1, 2009: Provided, That the provisions 

2 of section 1106 of this Act shall not apply to this appro3 priation. 

4 OFFICE OF THE SECRETARY

5 OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH

6 INFORMATION TECHNOLOGY

7 (INCLUDING TRANSFER OF FUNDS)

8 For an additional amount for ‘‘Office of the National 

9 Coordinator for Health Information Technology’’ to carry 

10 out section 9202 of this Act, $2,000,000,000, to remain 

11 available until expended: Provided, That of such amount, 

12 the Secretary of Health and Human Services shall trans13 fer $20,000,000 to the Director of the National Institute 

14 of Standards and Technology in the Department of Com15 merce for continued work on advancing health care infor16 mation enterprise integration through activities such as 

17 technical standards analysis and establishment of con18 formance testing infrastructure, so long as such activities 

19 are coordinated with the Office of the National Coordi20 nator for Health Information Technology: Provided fur21 ther, That the provisions of section 1103 of this Act shall 

22 not apply to this appropriation: Provided further, That the 

23 amount set aside from this appropriation pursuant to sec24 tion 1106 of this Act shall be 0.25 percent instead of the 

25 percentage specified in such section: Provided further, 


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1 That funds available under this heading shall become 

2 available for obligation only upon submission of an annual 

3 operating plan by the Secretary to the Committees on Ap4 propriations of the House of Representatives and the Sen5 ate: Provided further, That the fiscal year 2009 operating 

6 plan shall be provided not later than 90 days after enact7 ment of this Act and that subsequent annual operating 

8 plans shall be provided not later than November 1 of each 

9 year: Provided further, That these operating plans shall 

10 describe how expenditures are aligned with the specific ob11 jectives, milestones, and metrics of the Federal Health In12 formation Technology Strategic Plan, including any subse13 quent updates to the Plan; the allocation of resources 

14 within the Department of Health and Human Services and 

15 other Federal agencies; and the identification of programs 

16 and activities that are supported: Provided further, That 

17 the Secretary shall provide to the Committees on Appro18 priations of the House of Representatives and the Senate 

19 a report on the actual obligations, expenditures, and unob20 ligated balances for each major set of activities not later 

21 than November 1, 2009, and every 6 months thereafter 

22 as long as funding provided under this heading is available 

23 for obligation or expenditure: Provided further, That the 

24 Comptroller General of the United States shall review on 

25 an annual basis the expenditures from funds provided 


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1 under this heading to determine if such funds are used 

2 in a manner consistent with the purpose and requirements 

3 under this heading. 

4 PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY

5 FUND

6 (INCLUDING TRANSFER OF FUNDS)

7 For an additional amount for ‘‘Public Health and So8 cial Services Emergency Fund’’ to support advanced re9 search and development pursuant to section 319L of the 

10 Public Health Service Act, $430,000,000: Provided, That 

11 the provisions of section 1103 of this Act shall not apply 

12 to this appropriation. 

13 For an additional amount for ‘‘Public Health and So14 cial Services Emergency Fund’’ to prepare for and re15 spond to an influenza pandemic, including the develop16 ment and purchase of vaccine, antivirals, necessary med17 ical supplies, diagnostics, and other surveillance tools, 

18 $420,000,000: Provided, That the provisions of section 

19 1103 of this Act shall not apply to this appropriation: Pro20 vided further, That products purchased with these funds 

21 may, at the discretion of the Secretary of Health and 

22 Human Services (‘‘Secretary’’), be deposited in the Stra23 tegic National Stockpile: Provided further, That notwith24 standing section 496(b) of the Public Health Service Act, 

25 funds may be used for the construction or renovation of 


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1 privately owned facilities for the production of pandemic 

2 influenza vaccine and other biologics, where the Secretary 

3 finds such a contract necessary to secure sufficient sup4 plies of such vaccines or biologics: Provided further, That 

5 funds appropriated in this paragraph may be transferred 

6 to other appropriation accounts of the Department of 

7 Health and Human Services, as determined by the Sec8 retary to be appropriate, to be used for the purposed speci9 fied in this sentence. 

10 For an additional amount for ‘‘Public Health and So11 cial Services Emergency Fund’’ to improve information 

12 technology security at the Department of Health and 

13 Human Services, $50,000,000: Provided, That the Sec14 retary shall prepare and submit a report by not later than 

15 November 1, 2009, and by not later than 15 days after 

16 the end of each month thereafter, updating the status of 

17 actions taken and funds obligated in this and previous ap18 propriations Acts for pandemic influenza preparedness 

19 and response activities, biomedical advanced research and 

20 development activities, Project BioShield, and Cyber Secu21 rity. 

22 PREVENTION AND WELLNESS FUND

23 (INCLUDING TRANSFER OF FUNDS)

24 For necessary expenses for a ‘‘Prevention and 

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1 ment of Health and Human Services Office of the Sec2 retary, $3,000,000,000: Provided, That the provisions of 

3 section 1103 of this Act shall not apply to this appropria4 tion: Provided further, That of the amount appropriated 

5 under this heading not less than $2,350,000,000 shall be 

6 transferred to the Centers for Disease Control and Pre7 vention as follows: 

8 (1) not less than $954,000,000 shall be used as 

9 an additional amount to carry out the immunization 

10 program authorized by section 317(a), (j), and 

11 (k)(1) of the Public Health Service Act (‘‘section 

12 317 immunization program’’), of which 

13 $649,900,000 shall be available on October 1, 2009; 

14 (2) not less than $296,000,000 shall be used as 

15 an additional amount to carry out Part A of title 

16 XIX of the Public Health Service Act, of which 

17 $148,000,000 shall be available on October 1, 2009; 

18 (3) not less than $545,000,000 shall be used as 

19 an additional amount to carry out chronic disease, 

20 health promotion, and genomics programs, as jointly 

21 determined by the Secretary of Health and Human 

22 Services (‘‘Secretary’’) and the Director of the Cen23 ters for Disease Control and Prevention (‘‘Direc24 tor’’); 


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1 (4) not less than $335,000,000 shall be used as 

2 an additional amount to carry out domestic HIV/ 

3 AIDS, viral hepatitis, sexually-transmitted diseases, 

4 and tuberculosis prevention programs, as jointly de5 termined by the Secretary and the Director; 

6 (5) not less than $60,000,000 shall be used as 

7 an additional amount to carry out environmental 

8 health programs, as jointly determined by the Sec9 retary and the Director; 

10 (6) not less than $50,000,000 shall be used as 

11 an additional amount to carry out injury prevention 

12 and control programs, as jointly determined by the 

13 Secretary and the Director; 

14 (7) not less than $30,000,000 shall be used as 

15 an additional amount for public health workforce de16 velopment activities, as jointly determined by the 

17 Secretary and the Director; 

18 (8) not less than $40,000,000 shall be used as 

19 an additional amount for the National Institute for 

20 Occupational Safety and Health to carry out re21 search activities within the National Occupational 

22 Research Agenda; and 

23 (9) not less than $40,000,000 shall be used as 

24 an additional amount for the National Center for 

25 Health Statistics: 


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1 Provided further, That of the amount appropriated under 

2 this heading not less than $150,000,000 shall be available 

3 for an additional amount to carry out activities to imple4 ment a national action plan to prevent healthcare-associ5 ated infections, as determined by the Secretary, of which 

6 not less $50,000,000 shall be provided to States to imple7 ment healthcare-associated infection reduction strategies: 

8 Provided further, That of the amount appropriated under 

9 this heading $500,000,000 shall be used to carry out evi10 dence-based clinical and community-based prevention and 

11 wellness strategies and public health workforce develop12 ment activities authorized by the Public Health Service 

13 Act, as determined by the Secretary, that deliver specific, 

14 measurable health outcomes that address chronic and in15 fectious disease rates and health disparities, which shall 

16 include evidence-based interventions in obesity, diabetes, 

17 heart disease, cancer, tobacco cessation and smoking pre18 vention, and oral health, and which may be used for the 

19 Healthy Communities program administered by the Cen20 ters for Disease Control and Prevention and other existing 

21 community-based programs administered by the Depart22 ment of Health and Human Services: Provided further, 

23 That funds appropriated in the preceding proviso may be 

24 transferred to other appropriation accounts of the Depart25 ment of Health and Human Services, as determined by 


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1 the Secretary to be appropriate: Provided further, That the 

2 Secretary shall, directly or through contracts with public 

3 or private entities, provide for annual evaluations of pro4 grams carried out with funds provided under this heading 

5 in order to determine the quality and effectiveness of the 

6 programs: Provided further, That the Secretary shall, not 

7 later than 1 year after the date of enactment of this Act, 

8 submit to the Committees on Appropriations of the House 

9 of Representatives and the Senate, the Committee on En10 ergy and Commerce of the House of Representatives, and 

11 the Committee on Health, Education, Labor, and Pen12 sions of the Senate, a report (1) summarizing the annual 

13 evaluations of programs from the preceding proviso; and 

14 (2) making recommendations concerning future spending 

15 on prevention and wellness activities, including any rec16 ommendations made by the United States Preventive 

17 Services Task Force in the area of clinical preventive serv18 ices and the Task Force on Community Preventive Serv19 ices in the area of community preventive services: Provided 

20 further, That the Secretary shall enter into a contract with 

21 the Institute of Medicine, for which no more than 

22 $1,500,000 shall be made available from funds provided 

23 in this paragraph, to produce and submit a report to the 

24 Congress and the Secretary by no later than 1 year after 

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1 ommendations on the national priorities for clinical and 

2 community-based prevention and wellness activities that 

3 will have a positive impact in preventing illness or reduc4 ing healthcare costs and that considers input from stake5 holders: Provided further, That the Secretary shall provide 

6 to the Committees on Appropriations of the House of Rep7 resentatives and the Senate a fiscal year 2009 operating 

8 plan for the Prevention and Wellness Fund prior to mak9 ing any Federal obligations of funds provided under this 

10 heading in fiscal year 2009 (excluding funds to carry out 

11 the section 317 immunization program), but not later than 

12 90 days after the date of enactment of this Act, and a 

13 fiscal year 2010 operating plan for the Prevention and 

14 Wellness Fund prior to making any Federal obligations 

15 of funds provided under this heading in fiscal year 2010 

16 (excluding funds to carry out the section 317 immuniza17 tion program), but not later than November 1, 2009, that 

18 indicate the prevention priorities to be addressed; provide 

19 measurable goals for each prevention priority; detail the 

20 allocation of resources within the Department of Health 

21 and Human Services; and identify which programs or ac22 tivities are supported, including descriptions of any new 

23 programs or activities: Provided further, That the Sec24 retary shall provide to the Committees on Appropriations 

25 of the House of Representatives and the Senate a report 


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1 on the actual obligations, expenditures, and unobligated 

2 balances for each activity funded under this heading not 

3 later than November 1, 2009 and every 6 months there4 after as long as funding provided under this heading is 

5 available for obligation or expenditure. 

6 GENERAL PROVISIONS, THIS SUBTITLE 

7 SEC. 9201. FEDERAL COORDINATING COUNCIL FOR COM8 PARATIVE EFFECTIVENESS RESEARCH. 

9 (a) ESTABLISHMENT.—There is hereby established a 

10 Federal Coordinating Council for Comparative Effective11 ness Research (in this section referred to as the ‘‘Coun12 cil’’). 

13 (b) PURPOSE; DUTIES.—The Council shall— 

14 (1) assist the offices and agencies of the Fed15 eral Government, including the Departments of 

16 Health and Human Services, Veterans Affairs, and 

17 Defense, and other Federal departments or agencies, 

18 to coordinate the conduct or support of comparative 

19 effectiveness and related health services research; 

20 and 

21 (2) advise the President and Congress on— 

22 (A) strategies with respect to the infra23 structure needs of comparative effectiveness re24 search within the Federal Government; 


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1 (B) appropriate organizational expendi2 tures for comparative effectiveness research by 

3 relevant Federal departments and agencies; and 

4 (C) opportunities to assure optimum co5 ordination of comparative effectiveness and re6 lated health services research conducted or sup7 ported by relevant Federal departments and 

8 agencies, with the goal of reducing duplicative 

9 efforts and encouraging coordinated and com10 plementary use of resources. 

11 (c) MEMBERSHIP.— 

12 (1) NUMBER AND APPOINTMENT.—The Council 

13 shall be composed of not more than 15 members, all 

14 of whom are senior Federal officers or employees 

15 with responsibility for health-related programs, ap16 pointed by the President, acting through the Sec17 retary of Health and Human Services (in this sec18 tion referred to as the ‘‘Secretary’’). Members shall 

19 first be appointed to the Council not later than 30 

20 days after the date of the enactment of this Act. 

21 (2) MEMBERS.— 

22 (A) IN GENERAL.—The members of the 

23 Council shall include one senior officer or em24 ployee from each of the following agencies: 


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1 (i) The Agency for Healthcare Re2 search and Quality. 

3 (ii) The Centers for Medicare and 

4 Medicaid Services. 

5 (iii) The National Institutes of 

6 Health. 

7 (iv) The Office of the National Coor8 dinator for Health Information Tech9 nology. 

10 (v) The Food and Drug Administra11 tion. 

12 (vi) The Veterans Health Administra13 tion within the Department of Veterans 

14 Affairs. 

15 (vii) The office within the Department 

16 of Defense responsible for management of 

17 the Department of Defense Military 

18 Health Care System. 

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

20 members of the Council shall be physicians or 

21 other experts with clinical expertise. 

22 (3) CHAIRMAN; VICE CHAIRMAN.—The Sec23 retary shall serve as Chairman of the Council and 

24 shall designate a member to serve as Vice Chairman. 

25 (d) REPORTS.— 


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1 (1) INITIAL REPORT.—Not later than June 30, 

2 2009, the Council shall submit to the President and 

3 the Congress a report containing information de4 scribing Federal activities on comparative effective5 ness research and recommendations for additional 

6 investments in such research conducted or supported 

7 from funds made available for allotment by the Sec8 retary for comparative effectiveness research in this 

9 Act. 

10 (2) ANNUAL REPORT.—The Council shall sub11 mit to the President and Congress an annual report 

12 regarding its activities and recommendations con13 cerning the infrastructure needs, appropriate organi14 zational expenditures and opportunities for better 

15 coordination of comparative effectiveness research by 

16 relevant Federal departments and agencies. 

17 (e) STAFFING; SUPPORT.—From funds made avail18 able for allotment by the Secretary for comparative effec19 tiveness research in this Act, the Secretary shall make 

20 available not more than 1 percent to the Council for staff 

21 and administrative support. 

22 SEC. 9202. INVESTMENT IN HEALTH INFORMATION TECH23 NOLOGY. 

24 (a) IN GENERAL.—The Secretary of Health and 

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1 essary to allow for and promote the electronic exchange 

2 and use of health information for each individual in the 

3 United States consistent with the goals outlined in the 

4 Strategic Plan developed by the Office of the National Co5 ordinator for Health Information Technology. Such invest6 ment shall include investment in at least the following: 

7 (1) Health information technology architecture 

8 that will support the nationwide electronic exchange 

9 and use of health information in a secure, private, 

10 and accurate manner, including connecting health 

11 information exchanges, and which may include up12 dating and implementing the infrastructure nec13 essary within different agencies of the Department 

14 of Health and Human Services to support the elec15 tronic use and exchange of health information. 

16 (2) Integration of health information tech17 nology, including electronic medical records, into the 

18 initial and ongoing training of health professionals 

19 and others in the healthcare industry who would be 

20 instrumental to improving the quality of healthcare 

21 through the smooth and accurate electronic use and 

22 exchange of health information as determined by the 

23 Secretary. 

24 (3) Training on and dissemination of informa25 tion on best practices to integrate health information 


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1 technology, including electronic records, into a pro2 vider’s delivery of care, including community health 

3 centers receiving assistance under section 330 of the 

4 Public Health Service Act and providers partici5 pating in one or more of the programs under titles 

6 XVIII, XIX, and XXI of the Social Security Act (re7 lating to Medicare, Medicaid, and the State Chil8 drens Health Insurance Program). 

9 (4) Infrastructure and tools for the promotion 

10 of telemedicine, including coordination among Fed11 eral agencies in the promotion of telemedicine. 

12 (5) Promotion of the interoperability of clinical 

13 data repositories or registries. 

14 The Secretary shall implement paragraph (3) in coordina15 tion with State agencies administering the Medicaid pro16 gram and the State Children’s Health Insurance Program. 

17 (b) LIMITATION.—None of the funds appropriated to 

18 carry out this section may be used to make significant in19 vestments in, or provide significant funds for, the acquisi20 tion of hardware or software or for the use of an electronic 

21 health or medical record, or significant components there22 of, unless such investments or funds are for certified prod23 ucts that would permit the full and accurate electronic ex24 change and use of health information in a medical record, 

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1 provement functions adopted by the Office of the National 

2 Coordinator for Health Information Technology. 

3 (c) REPORT.—The Secretary shall annually report to 

4 the Committees on Energy and Commerce, on Ways and 

5 Means, on Science and Technology, and on Appropriations 

6 of the House of Representatives and the Committees on 

7 Finance, on Health, Education, Labor, and Pensions, and 

8 on Appropriations of the Senate on the uses of these funds 

9 and their impact on the infrastructure for the electronic 

10 exchange and use of health information. 

11 Subtitle C—Education 

12 DEPARTMENT OF EDUCATION 

13 EDUCATION FOR THE DISADVANTAGED

14 For an additional amount for ‘‘Education for the Dis15 advantaged’’ to carry out title I of the Elementary and 

16 Secondary Education Act of 1965 (‘‘ESEA’’), 

17 $13,000,000,000: Provided, That $5,500,000,000 shall be 

18 available for targeted grants under section 1125 of the 

19 ESEA, of which $2,750,000,000 shall become available on 

20 July 1, 2009, and shall remain available through Sep21 tember 30, 2010, and $2,750,000,000 shall become avail22 able on July 1, 2010, and shall remain available through 

23 September 30, 2011: Provided further, That 

24 $5,500,000,000 shall be available for education finance in25 centive grants under section 1125A of the ESEA, of which 


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1 $2,750,000,000 shall become available on July 1, 2009, 

2 and shall remain available through September 30, 2010, 

3 and $2,750,000,000 shall become available on July 1, 

4 2010, and shall remain available through September 30, 

5 2011: Provided further, That $2,000,000,000 shall be for 

6 school improvement grants under section 1003(g) of the 

7 ESEA, of which $1,000,000,000 shall become available on 

8 July 1, 2009, and shall remain available through Sep9 tember 30, 2010, and $1,000,000,000 shall become avail10 able on July 1, 2010, and shall remain available through 

11 September 30, 2011: Provided further, That the provisions 

12 of section 1106 of this Act shall not apply to this appro13 priation. 

14 IMPACT AID

15 For an additional amount for ‘‘Impact Aid’’ to carry 

16 out section 8007 of title VIII of the Elementary and Sec17 ondary Education Act of 1965, $100,000,000, which shall 

18 remain available through September 30, 2010: Provided, 

19 That the amount set aside from this appropriation pursu20 ant to section 1106 of this Act shall be 1 percent instead 

21 of the percentage specified in such section. 

22 SCHOOL IMPROVEMENT PROGRAMS

23 For an additional amount for ‘‘School Improvement 

24 Programs’’ to carry out subpart 1, part D of title II of 

25 the Elementary and Secondary Education Act of 1965 


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1 (‘‘ESEA’’), and subtitle B of title VII of the McKinney2 Vento Homeless Assistance Act, $1,066,000,000: Pro3 vided, That $1,000,000,000 shall be available for subpart 

4 1, part D of title II of the ESEA, of which $500,000,000 

5 shall become available on July 1, 2009, and shall remain 

6 available through September 30, 2010, and $500,000,000 

7 shall become available on July 1, 2010, and remain avail8 able through September 30, 2011: Provided further, That 

9 the provisions of section 1106 of this Act shall not apply 

10 to these funds: Provided further, That $66,000,000 shall 

11 be available for subtitle B of title VII of the McKinney12 Vento Homeless Assistance Act, of which $33,000,000 

13 shall become available on July 1, 2009, and shall remain 

14 available through September 30, 2010, and $33,000,000 

15 shall become available on July 1, 2010, and remain avail16 able through September 30, 2011. 

17 INNOVATION AND IMPROVEMENT

18 For an additional amount for ‘‘Innovation and Im19 provement’’ to carry out subpart 1, part D and subpart 

20 2, part B of title V of the Elementary and Secondary Edu21 cation Act of 1965 (‘‘ESEA’’), $225,000,000: Provided, 

22 That $200,000,000 shall be available for subpart 1, part 

23 D of title V of the ESEA: Provided further, That these 

24 funds shall be expended as directed in the fifth, sixth, and 

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1 provement’’ in the Department of Education Appropria2 tions Act, 2008: Provided further, That a portion of these 

3 funds shall also be used for a rigorous national evaluation 

4 by the Institute of Education Sciences, utilizing random5 ized controlled methodology to the extent feasible, that as6 sesses the impact of performance-based teacher and prin7 cipal compensation systems supported by the funds pro8 vided in this Act on teacher and principal recruitment and 

9 retention in high-need schools and subjects: Provided fur10 ther, That $25,000,000 shall be available for subpart 2, 

11 part B of title V of the ESEA: Provided further, That the 

12 amount set aside from this appropriation pursuant to sec13 tion 1106 of this Act shall be 1 percent instead of the 

14 percentage specified in such section. 

15 SPECIAL EDUCATION

16 For an additional amount for ‘‘Special Education’’ 

17 for carrying out section 611 and part C of the Individuals 

18 with Disabilities Education Act (‘‘IDEA’’), 

19 $13,600,000,000: Provided, That $13,000,000,000 shall 

20 be available for section 611 of the IDEA, of which 

21 $6,000,000,000 shall become available on July 1, 2009, 

22 and remain available through September 30, 2010, and 

23 $7,000,000,000 shall become available on July 1, 2010, 

24 and remain available through September 30, 2011: Pro25 vided further, That $600,000,000 shall be available for 


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1 part C of the IDEA, of which $300,000,000 shall become 

2 available on July 1, 2009, and remain available through 

3 September 30, 2010, and $300,000,000 shall become 

4 available on July 1, 2010, and remain available through 

5 September 30, 2011: Provided further, That by July 1, 

6 2009, the Secretary of Education shall reserve the amount 

7 needed for grants under section 643(e) of the IDEA from 

8 funds available for obligation on July 1, 2009, with any 

9 remaining funds to be allocated in accordance with section 

10 643(c) of the IDEA: Provided further, That by July 1, 

11 2010, the Secretary shall reserve the amount needed for 

12 grants under section 643(e) of the IDEA from funds avail13 able for obligation on July 1, 2010, with any remaining 

14 funds to be allocated in accordance with section 643(c) 

15 of the IDEA: Provided further, That if every State, as de16 fined by section 602(31) of the IDEA, reaches its max17 imum allocation under section 611(d)(3)(B)(iii) of the 

18 IDEA, and there are remaining funds, such funds shall 

19 be proportionally allocated to each State subject to the 

20 maximum amounts contained in section 611(a)(2) of the 

21 IDEA: Provided further, That the provisions of section 

22 1106 of this Act shall not apply to this appropriation. 

23 REHABILITATION SERVICES AND DISABILITY RESEARCH

24 For an additional amount for ‘‘Rehabilitation Serv25 ices and Disability Research’’ for providing grants to 


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1 States to carry out the Vocational Rehabilitation Services 

2 program under part B of title I and parts B and C of 

3 chapter 1 and chapter 2 of title VII of the Rehabilitation 

4 Act of 1973, $700,000,000: Provided, That $500,000,000 

5 shall be available for part B of title I of the Rehabilitation 

6 Act, of which $250,000,000 shall become available on Oc7 tober 1, 2009: Provided further, That funds provided here8 in shall not be considered in determining the amount re9 quired to be appropriated under section 100(b)(1) of the 

10 Rehabilitation Act of 1973 in any fiscal year: Provided fur11 ther, That, notwithstanding section 7(14)(A), the Federal 

12 share of the costs of vocational rehabilitation services pro13 vided with the funds provided herein shall be 100 percent: 

14 Provided further, That the provisions of section 1106 of 

15 this Act shall not apply to these funds: Provided further, 

16 That $200,000,000 shall be available for parts B and C 

17 of chapter 1 and chapter 2 of title VII of the Rehabilita18 tion Act, of which $100,000,000 shall become available on 

19 October 1, 2009: Provided further, That $34,775,000 shall 

20 be for State Grants, $114,581,000 shall be for inde21 pendent living centers, and $50,644,000 shall be for serv22 ices for older blind individuals. 

23 STUDENT FINANCIAL ASSISTANCE

24 For an additional amount for ‘‘Student Financial As25 sistance’’ to carry out subpart 1 of part A and part C 


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1 of title IV of the Higher Education Act of 1965 (‘‘HEA’’), 

2 $16,126,000,000, which shall remain available through 

3 September 30, 2011: Provided, That $15,636,000,000 

4 shall be available for subpart 1of part A of title IV of the 

5 HEA: Provided further, That $490,000,000 shall be avail6 able for part C of title IV of the HEA, of which 

7 $245,000,000 shall become available on October 1, 2009: 

8 Provided further, That the provisions of section 1106 of 

9 this Act shall not apply to this appropriation. 

10 The maximum Pell Grant for which a student shall 

11 be eligible during award year 2009-2010 shall be $4,860. 

12 STUDENT AID ADMINISTRATION

13 For an additional amount for ‘‘Student Aid Adminis14 tration’’ to carry out part D of title I, and subparts 1, 

15 3, and 4 of part A, and parts B, C, D, and E of title 

16 IV of the Higher Education Act of 1965, $50,000,000, 

17 which shall remain available through September 30, 2011: 

18 Provided, That such amount shall also be available for an 

19 independent audit of programs and activities authorized 

20 under section 459A of such Act: Provided further, That 

21 the provisions of section 1106 of this Act shall not apply 

22 to this appropriation. 

23 HIGHER EDUCATION

24 For an additional amount for ‘‘Higher Education’’ to 

25 carry out part A of title II of the Higher Education Act 


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1 of 1965, $100,000,000: Provided, That section 203(c)(1) 

2 of such Act shall not apply to awards made with these 

3 funds. 

4 INSTITUTE OF EDUCATION SCIENCES

5 For an additional amount for Institute of Education 

6 Sciences to carry out section 208 of the Educational Tech7 nical Assistance Act, $250,000,000, which may be used 

8 for Statewide data systems that include postsecondary and 

9 workforce information, of which up to $5,000,000 may be 

10 used for State data coordinators and for awards to public 

11 or private organizations or agencies to improve data co12 ordination: Provided, That the amount set aside from this 

13 appropriation pursuant to section 1106 of this Act shall 

14 be 1 percent instead of the percentage specified in such 

15 section. 

16 SCHOOL MODERNIZATION, RENOVATION, AND REPAIR

17 For carrying out section 9301 of this Act, 

18 $14,000,000,000: Provided, That amount available under 

19 section 9301 of this Act for administration and oversight 

20 shall take the place of the set-aside under section 1106 

21 of this Act. 

22 HIGHER EDUCATION MODERNIZATION, RENOVATION, 

23 AND REPAIR

24 For carrying out section 9302 of this Act, 

25 $6,000,000,000: Provided, That amount available under 


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1 section 9302 of this Act for administration and oversight 

2 shall take the place of the set-aside under section 1106 

3 of this Act. 

4 GENERAL PROVISIONS, THIS SUBTITLE 

5 SEC. 9301. 21ST CENTURY GREEN HIGH-PERFORMING PUB6 LIC SCHOOL FACILITIES. 

7 (a) DEFINITIONS.—In this section: 

8 (1) The term ‘‘Bureau-funded school’’ has the 

9 meaning given to such term in section 1141 of the 

10 Education Amendments of 1978 (25 U.S.C. 2021). 

11 (2) The term ‘‘charter school’’ has the meaning 

12 given such term in section 5210 of the Elementary 

13 and Secondary Education Act of 1965. 

14 (3) The term ‘‘local educational agency’’— 

15 (A) has the meaning given to that term in 

16 section 9101 of the Elementary and Secondary 

17 Education Act of 1965, and shall also include 

18 the Recovery School District of Louisiana and 

19 the New Orleans Public Schools; and 

20 (B) includes any public charter school that 

21 constitutes a local educational agency under 

22 State law. 

23 (4) The term ‘‘outlying area’’— 

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1 monwealth of the Northern Mariana Islands; 

2 and 

3 (B) includes the freely associated states of 

4 the Republic of the Marshall Islands, the Fed5 erated States of Micronesia, and the Republic 

6 of Palau. 

7 (5) The term ‘‘public school facilities’’ includes 

8 charter schools. 

9 (6) The term ‘‘State’’ means each of the 50 

10 States, the District of Columbia, and the Common11 wealth of Puerto Rico. 

12 (7) The term ‘‘LEED Green Building Rating 

13 System’’ means the United States Green Building 

14 Council Leadership in Energy and Environmental 

15 Design green building rating standard referred to as 

16 the LEED Green Building Rating System. 

17 (8) The term ‘‘Energy Star’’ means the Energy 

18 Star program of the United States Department of 

19 Energy and the United States Environmental Pro20 tection Agency. 

21 (9) The term ‘‘CHPS Criteria’’ means the 

22 green building rating program developed by the Col23 laborative for High Performance Schools. 


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1 (10) The term ‘‘Green Globes’’ means the 

2 Green Building Initiative environmental design and 

3 rating system referred to as Green Globes. 

4 (b) PURPOSE.—Grants under this section shall be for 

5 the purpose of modernizing, renovating, or repairing pub6 lic school facilities, based on their need for such improve7 ments, to be safe, healthy, high-performing, and up-to8 date technologically. 

9 (c) ALLOCATION OF FUNDS.— 

10 (1) RESERVATIONS.— 

11 (A) IN GENERAL.—From the amount ap12 propriated to carry out this section, the Sec13 retary of Education shall reserve 1 percent of 

14 such amount, consistent with the purpose de15 scribed in subsection (b)— 

16 (i) to provide assistance to the out17 lying areas; and 

18 (ii) for payments to the Secretary of 

19 the Interior to provide assistance to Bu20 reau-funded schools. 

21 (B) ADMINISTRATION AND OVERSIGHT.— 

22 The Secretary may, in addition, reserve up to 

23 $6,000,000 of such amount for administration 

24 and oversight of this section. 

25 (2) ALLOCATION TO STATES.— 


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1 (A) STATE-BY-STATE ALLOCATION.—Of 

2 the amount appropriated to carry out this sec3 tion, and not reserved under paragraph (1), 

4 each State shall be allocated an amount in pro5 portion to the amount received by all local edu6 cational agencies in the State under part A of 

7 title I of the Elementary and Secondary Edu8 cation Act of 1965 for fiscal year 2008 relative 

9 to the total amount received by all local edu10 cational agencies in every State under such part 

11 for such fiscal year. 

12 (B) STATE ADMINISTRATION.—A State 

13 may reserve up to 1 percent of its allocation 

14 under subparagraph (A) to carry out its respon15 sibilities under this section, including— 

16 (i) providing technical assistance to 

17 local educational agencies; 

18 (ii) developing, within 6 months of re19 ceiving its allocation under subparagraph 

20 (A), a plan to develop a database that in21 cludes an inventory of public school facili22 ties in the State and the modernization, 

23 renovation, and repair needs of, energy use 

24 by, and the carbon footprint of such 

25 schools; and 


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1 (iii) developing a school energy effi2 ciency quality plan. 

3 (C) GRANTS TO LOCAL EDUCATIONAL

4 AGENCIES.—From the amount allocated to a 

5 State under subparagraph (A), each local edu6 cational agency in the State that meets the re7 quirements of section 1112(a) of the Elemen8 tary and Secondary Education Act of 1965 

9 shall receive an amount in proportion to the 

10 amount received by such local educational agen11 cy under part A of title I of that Act for fiscal 

12 year 2008 relative to the total amount received 

13 by all local educational agencies in the State 

14 under such part for such fiscal year, except that 

15 no local educational agency that received funds 

16 under part A of title I of that Act for such fis17 cal year shall receive a grant of less than 

18 $5,000. 

19 (D) SPECIAL RULE.—Section 1122(c)(3) 

20 of the Elementary and Secondary Education 

21 Act of 1965 shall not apply to subparagraph 

22 (A) or (C). 

23 (3) SPECIAL RULES.— 

24 (A) DISTRIBUTIONS BY SECRETARY.—The 

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1 tribute the reservations and allocations de2 scribed in paragraphs (1) and (2) not later than 

3 30 days after the date of the enactment of this 

4 Act. 

5 (B) DISTRIBUTIONS BY STATES.—A State 

6 shall make and distribute the allocations de7 scribed in paragraph (2)(C) within 30 days of 

8 receiving such funds from the Secretary. 

9 (d) USE IT OR LOSE IT REQUIREMENTS.— 

10 (1) DEADLINE FOR BINDING COMMITMENTS.— 

11 Each local educational agency receiving funds under 

12 this section shall enter into contracts or other bind13 ing commitments not later than 1 year after the 

14 date of the enactment of this Act (or not later than 

15 9 months after such funds are awarded, if later) to 

16 make use of 50 percent of such funds, and shall 

17 enter into contracts or other binding commitments 

18 not later than 2 years after the date of the enact19 ment of this Act (or not later than 21 months after 

20 such funds are awarded, if later) to make use of the 

21 remaining funds. In the case of activities to be car22 ried out directly by a local educational agency (rath23 er than by contracts, subgrants, or other arrange24 ments with third parties), a certification by the 

25 agency specifying the amounts, planned timing, and 


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1 purpose of such expenditures shall be deemed a 

2 binding commitment for purposes of this subsection. 

3 (2) REDISTRIBUTION OF UNCOMMITTED

4 FUNDS.—A State shall recover or deobligate any 

5 funds not committed in accordance with paragraph 

6 (1), and redistribute such funds to other local edu7 cational agencies eligible under this section and able 

8 to make use of such funds in a timely manner (in9 cluding binding commitments within 120 days after 

10 the reallocation). 

11 (e) ALLOWABLE USES OF FUNDS.—A local edu12 cational agency receiving a grant under this section shall 

13 use the grant for modernization, renovation, or repair of 

14 public school facilities, including— 

15 (1) repairing, replacing, or installing roofs, in16 cluding extensive, intensive or semi-intensive green 

17 roofs, electrical wiring, plumbing systems, sewage 

18 systems, lighting systems, or components of such 

19 systems, windows, or doors, including security doors; 

20 (2) repairing, replacing, or installing heating, 

21 ventilation, air conditioning systems, or components 

22 of such systems (including insulation), including in23 door air quality assessments; 

24 (3) bringing public schools into compliance with 

25 fire, health, and safety codes, including professional 


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1 installation of fire/life safety alarms, including mod2 ernizations, renovations, and repairs that ensure 

3 that schools are prepared for emergencies, such as 

4 improving building infrastructure to accommodate 

5 security measures; 

6 (4) modifications necessary to make public 

7 school facilities accessible to comply with the Ameri8 cans with Disabilities Act of 1990 (42 U.S.C. 12101 

9 et seq.) and section 504 of the Rehabilitation Act of 

10 1973 (29 U.S.C. 794), except that such modifica11 tions shall not be the primary use of the grant; 

12 (5) asbestos or polychlorinated biphenyls abate13 ment or removal from public school facilities; 

14 (6) implementation of measures designed to re15 duce or eliminate human exposure to lead-based 

16 paint hazards through methods including interim 

17 controls, abatement, or a combination of each; 

18 (7) implementation of measures designed to re19 duce or eliminate human exposure to mold or mil20 dew; 

21 (8) upgrading or installing educational tech22 nology infrastructure to ensure that students have 

23 access to up-to-date educational technology; 


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1 (9) technology activities that are carried out in 

2 connection with school repair and renovation, includ3 ing— 

4 (A) wiring; 

5 (B) acquiring hardware and software; 

6 (C) acquiring connectivity linkages and re7 sources; and 

8 (D) acquiring microwave, fiber optics, 

9 cable, and satellite transmission equipment; 

10 (10) modernization, renovation, or repair of 

11 science and engineering laboratory facilities, librar12 ies, and career and technical education facilities, in13 cluding those related to energy efficiency and renew14 able energy, and improvements to building infra15 structure to accommodate bicycle and pedestrian ac16 cess; 

17 (11) renewable energy generation and heating 

18 systems, including solar, photovoltaic, wind, geo19 thermal, or biomass, including wood pellet, systems 

20 or components of such systems; 

21 (12) other modernization, renovation, or repair 

22 of public school facilities to— 

23 (A) improve teachers’ ability to teach and 

24 students’ ability to learn; 


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1 (B) ensure the health and safety of stu2 dents and staff; 

3 (C) make them more energy efficient; or 

4 (D) reduce class size; and 

5 (13) required environmental remediation related 

6 to public school modernization, renovation, or repair 

7 described in paragraphs (1) through (12). 

8 (f) IMPERMISSIBLE USES OF FUNDS.—No funds re9 ceived under this section may be used for— 

10 (1) payment of maintenance costs; or 

11 (2) stadiums or other facilities primarily used 

12 for athletic contests or exhibitions or other events 

13 for which admission is charged to the general public. 

14 (g) SUPPLEMENT, NOT SUPPLANT.—A local edu15 cational agency receiving a grant under this section shall 

16 use such Federal funds only to supplement and not sup17 plant the amount of funds that would, in the absence of 

18 such Federal funds, be available for modernization, ren19 ovation, or repair of public school facilities. 

20 (h) PROHIBITION REGARDING STATE AID.—A State 

21 shall not take into consideration payments under this sec22 tion in determining the eligibility of any local educational 

23 agency in that State for State aid, or the amount of State 

24 aid, with respect to free public education of children. 


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1 (i) SPECIAL RULE ON CONTRACTING.—Each local 

2 educational agency receiving a grant under this section 

3 shall ensure that, if the agency carries out modernization, 

4 renovation, or repair through a contract, the process for 

5 any such contract ensures the maximum number of quali6 fied bidders, including local, small, minority, and women7 and veteran-owned businesses, through full and open com8 petition. 

9 (j) SPECIAL RULE ON USE OF IRON AND STEEL

10 PRODUCED IN THE UNITED STATES.— 

11 (1) IN GENERAL.—A local educational agency 

12 shall not obligate or expend funds received under 

13 this section for a project for the modernization, ren14 ovation, or repair of a public school facility unless all 

15 of the iron and steel used in such project is pro16 duced in the United States. 

17 (2) EXCEPTIONS.—The provisions of paragraph 

18 (1) shall not apply in any case in which the local 

19 educational agency finds that— 

20 (A) their application would be inconsistent 

21 with the public interest; 

22 (B) iron and steel are not produced in the 

23 United States in sufficient and reasonably 

24 available quantities and of a satisfactory qual25 ity; or 


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1 (C) inclusion of iron and steel produced in 

2 the United States will increase the cost of the 

3 overall project contract by more than 25 per4 cent. 

5 (k) APPLICATION OF GEPA.—The grant program 

6 under this section is an applicable program (as that term 

7 is defined in section 400 of the General Education Provi8 sions Act (20 U.S.C. 1221)) subject to section 439 of such 

9 Act (20 U.S.C. 1232b). 

10 (l) CHARTER SCHOOLS.—A local educational agency 

11 receiving an allocation under this section shall use an equi12 table portion of that allocation for allowable activities ben13 efitting charter schools within its jurisdiction, as deter14 mined based on the percentage of students from low-in15 come families in the schools of the agency who are enrolled 

16 in charter schools and on the needs of those schools as 

17 determined by the agency. 

18 (m) GREEN SCHOOLS.— 

19 (1) IN GENERAL.—A local educational agency 

20 shall use not less than 25 percent of the funds re21 ceived under this section for public school mod22 ernization, renovation, or repairs that are certified, 

23 verified, or consistent with any applicable provisions 

24 of— 


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1 (A) the LEED Green Building Rating Sys2 tem; 

3 (B) Energy Star; 

4 (C) the CHPS Criteria; 

5 (D) Green Globes; or 

6 (E) an equivalent program adopted by the 

7 State or another jurisdiction with authority over 

8 the local educational agency. 

9 (2) TECHNICAL ASSISTANCE.—The Secretary, 

10 in consultation with the Secretary of Energy and the 

11 Administrator of the Environmental Protection 

12 Agency, shall provide outreach and technical assist13 ance to States and school districts concerning the 

14 best practices in school modernization, renovation, 

15 and repair, including those related to student aca16 demic achievement and student and staff health, en17 ergy efficiency, and environmental protection. 

18 (n) YOUTHBUILD PROGRAMS.—The Secretary of 

19 Education, in consultation with the Secretary of Labor, 

20 shall work with recipients of funds under this section to 

21 promote appropriate opportunities for participants in a 

22 YouthBuild program (as defined in section 173A of the 

23 Workforce Investment Act of 1998 (29 U.S.C. 2918a)) to 

24 gain employment experience on modernization, renovation, 

25 and repair projects funded under this section. 


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1 (o) REPORTING.— 

2 (1) REPORTS BY LOCAL EDUCATIONAL AGEN3 CIES.—Local educational agencies receiving a grant 

4 under this section shall compile, and submit to the 

5 State educational agency (which shall compile and 

6 submit such reports to the Secretary), a report de7 scribing the projects for which such funds were used, 

8 including— 

9 (A) the number of public schools in the 

10 agency, including the number of charter 

11 schools; 

12 (B) the total amount of funds received by 

13 the local educational agency under this section 

14 and the amount of such funds expended, includ15 ing the amount expended for modernization, 

16 renovation, and repair of charter schools; 

17 (C) the number of public schools in the 

18 agency with a metro-centric locale code of 41, 

19 42, or 43 as determined by the National Center 

20 for Education Statistics and the percentage of 

21 funds received by the agency under this section 

22 that were used for projects at such schools; 

23 (D) the number of public schools in the 

24 agency that are eligible for schoolwide programs 

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1 ondary Education Act of 1965 and the percent2 age of funds received by the agency under this 

3 section that were used for projects at such 

4 schools; 

5 (E) the cost of each project, which, if any, 

6 of the standards described in subsection (k)(1) 

7 the project met, and any demonstrable or ex8 pected academic, energy, or environmental ben9 efits as a result of the project; 

10 (F) if flooring was installed, whether— 

11 (i) it was low- or no-VOC (Volatile 

12 Organic Compounds) flooring; 

13 (ii) it was made from sustainable ma14 terials; and 

15 (iii) use of flooring described in clause 

16 (i) or (ii) was cost effective; and 

17 (G) the total number and amount of con18 tracts awarded, and the number and amount of 

19 contracts awarded to local, small, minority20 owned, women-owned, and veteran-owned busi21 nesses. 

22 (2) REPORTS BY SECRETARY.—Not later than 

23 December 31, 2011, the Secretary of Education 

24 shall submit to the Committees on Education and 

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1 resentatives and the Committees on Health, Edu2 cation, Labor, and Pensions and Appropriations of 

3 the Senate a report on grants made under this sec4 tion, including the information described in para5 graph (1), the types of modernization, renovation, 

6 and repair funded, and the number of students im7 pacted, including the number of students counted 

8 under section 1113(a)(5) of the Elementary and 

9 Secondary Education Act of 1965. 

10 SEC. 9302. HIGHER EDUCATION MODERNIZATION, RENOVA11 TION, AND REPAIR. 

12 (a) PURPOSE.—Grants awarded under this section 

13 shall be for the purpose of modernizing, renovating, and 

14 repairing institution of higher education facilities that are 

15 primarily used for instruction, research, or student hous16 ing. 

17 (b) GRANTS TO STATE HIGHER EDUCATION AGEN18 CIES.— 

19 (1) FORMULA.—From the amounts appro20 priated to carry out this section, the Secretary of 

21 Education shall allocate funds to State higher edu22 cation agencies based on the number of students at23 tending institutions of higher education, with the 

24 State higher education agency in each State receiv25 ing an amount that is in proportion to the number 


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1 of full-time equivalent undergraduate students at2 tending institutions of higher education in such 

3 State for the most recent fiscal year for which there 

4 are data available, relative to the total number of 

5 full-time equivalent undergraduate students attend6 ing institutions of higher education in all States for 

7 such fiscal year. 

8 (2) APPLICATION.—To be eligible to receive an 

9 allocation from the Secretary under paragraph (1), 

10 a State higher education agency shall submit an ap11 plication to the Secretary at such time and in such 

12 manner as the Secretary may reasonably require. 

13 (3) REALLOCATION.—Amounts allocated to a 

14 State higher education agency under this section 

15 that are not obligated by such agency within 6 

16 months of the date the agency receives such 

17 amounts shall be returned to the Secretary, and the 

18 Secretary shall reallocate such amounts to State 

19 higher education agencies in other States on the 

20 same basis as the original allocations under para21 graph (1)(B). 

22 (4) ADMINISTRATION AND OVERSIGHT EX23 PENSES.—From the amounts appropriated to carry 

24 out this section, not more than $6,000,000 shall be 

25 available to the Secretary for administrative and 


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1 oversight expenses related to carrying out this sec2 tion. 

3 (c) USE OF GRANTS BY STATE HIGHER EDUCATION

4 AGENCIES.— 

5 (1) SUBGRANTS TO INSTITUTIONS OF HIGHER

6 EDUCATION.— 

7 (A) IN GENERAL.—Except as provided in 

8 paragraph (2), each State higher education 

9 agency receiving an allocation under subsection 

10 (b)(1) shall use the amount allocated to award 

11 subgrants to institutions of higher education 

12 within the State to carry out projects in accord13 ance with subsection (d)(1). 

14 (B) SUBGRANT AWARD ALLOCATION.—A 

15 State higher education agency shall award sub16 grants to institutions of higher education under 

17 this section based on the demonstrated need of 

18 each institution for facility modernization, ren19 ovation, and repair. 

20 (C) PRIORITY CONSIDERATIONS.—In 

21 awarding subgrants under this section, each 

22 State higher education agency shall give pri23 ority consideration to institutions of higher edu24 cation with any of the following characteristics: 


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1 (i) The institution is eligible for Fed2 eral assistance under title III or title V of 

3 the Higher Education Act of 1965. 

4 (ii) The institution was impacted by a 

5 major disaster or emergency declared by 

6 the President (as defined in section 102(2) 

7 of the Robert T. Stafford Disaster Relief 

8 and Emergency Assistance Act (42 U.S.C. 

9 5122(2))), including an institution affected 

10 by a Gulf hurricane disaster, as such term 

11 is defined in section 824(g)(1) of the High12 er Education Act of 1965 (20 U.S.C. 

13 11611–3(g)(1)). 

14 (iii) The institution demonstrates that 

15 the proposed project or projects to be car16 ried out with a subgrant under this section 

17 will increase the energy efficiency of the in18 stitution’s facilities and comply with the 

19 LEED Green Building Rating System. 

20 (2) ADMINISTRATIVE AND OVERSIGHT EX21 PENSES.—Of the allocation amount received under 

22 subsection (b)(1), a State higher education agency 

23 may reserve not more than 5 percent of such 

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1 trative and oversight expenses related to carrying 

2 out this section. 

3 (d) USE OF SUBGRANTS BY INSTITUTIONS OF HIGH4 ER EDUCATION.— 

5 (1) PERMISSIBLE USES OF FUNDS.—An institu6 tion of higher education receiving a subgrant under 

7 this section shall use such subgrant to modernize, 

8 renovate, or repair facilities of the institution that 

9 are primarily used for instruction, research, or stu10 dent housing, which may include any of the fol11 lowing: 

12 (A) Repair, replacement, or installation of 

13 roofs, electrical wiring, plumbing systems, sew14 age systems, or lighting systems. 

15 (B) Repair, replacement, or installation of 

16 heating, ventilation, or air conditioning systems 

17 (including insulation). 

18 (C) Compliance with fire and safety codes, 

19 including— 

20 (i) professional installation of fire or 

21 life safety alarms; and 

22 (ii) modernizations, renovations, and 

23 repairs that ensure that the institution’s 

24 facilities are prepared for emergencies, 


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1 such as improving building infrastructure 

2 to accommodate security measures. 

3 (D) Retrofitting necessary to increase the 

4 energy efficiency of the institution’s facilities. 

5 (E) Renovations to the institution’s facili6 ties necessary to comply with accessibility re7 quirements in the Americans with Disabilities 

8 Act of 1990 (42 U.S.C. 12101 et seq.) and sec9 tion 504 of the Rehabilitation Act of 1973 (29 

10 U.S.C. 794). 

11 (F) Abatement or removal of asbestos from 

12 the institution’s facilities. 

13 (G) Modernization, renovation, and repair 

14 relating to improving science and engineering 

15 laboratories, libraries, and instructional facili16 ties. 

17 (H) Upgrading or installation of edu18 cational technology infrastructure. 

19 (I) Installation or upgrading of renewable 

20 energy generation and heating systems, includ21 ing solar, photovoltaic, wind, biomass (including 

22 wood pellet), or geothermal systems, or compo23 nents of such systems. 


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1 (J) Other modernization, renovation, or re2 pair projects that are primarily for instruction, 

3 research, or student housing. 

4 (2) GREEN SCHOOL REQUIREMENT.—An insti5 tution of higher education receiving a subgrant 

6 under this section shall use not less than 25 percent 

7 of such subgrant to carry out projects for mod8 ernization, renovation, or repair that are certified, 

9 verified, or consistent with the applicable provisions 

10 of— 

11 (A) the LEED Green Building Rating Sys12 tem; 

13 (B) Energy Star; 

14 (C) the CHPS Criteria; 

15 (D) Green Globes; or 

16 (E) an equivalent program adopted by the 

17 State or the State higher education agency. 

18 (3) PROHIBITED USES OF FUNDS.—No funds 

19 awarded under this section may be used for— 

20 (A) the maintenance of systems, equip21 ment, or facilities, including maintenance asso22 ciated with any permissible uses of funds de23 scribed in paragraph (1); 

24 (B) modernization, renovation, or repair of 

25 stadiums or other facilities primarily used for 


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1 athletic contests or exhibitions or other events 

2 for which admission is charged to the general 

3 public; 

4 (C) modernization, renovation, or repair of 

5 facilities— 

6 (i) used for sectarian instruction, reli7 gious worship, or a school or department 

8 of divinity; or 

9 (ii) in which a substantial portion of 

10 the functions of the facilities are subsumed 

11 in a religious mission; or 

12 (D) construction of new facilities. 

13 (4) USE IT OR LOSE IT REQUIREMENTS.— 

14 (A) DEADLINE FOR BINDING COMMIT15 MENTS.—Each institution of higher education 

16 receiving a subgrant under this section shall 

17 enter into contracts or other binding commit18 ments not later than 1 year after the date of 

19 the enactment of this Act (or not later than 9 

20 months after the subgrant is awarded, if later) 

21 to make use of 50 percent of the funds award22 ed, and shall enter into contracts or other bind23 ing commitments not later than 2 years after 

24 the date of the enactment of this Act (or not 

25 later than 21 months after the subgrant is 


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1 awarded, if later) to make use of the remaining 

2 funds. In the case of activities to be carried out 

3 directly by an institution of higher education re4 ceiving such a subgrant (rather than by con5 tracts, subgrants, or other arrangements with 

6 third parties), a certification by the institution 

7 specifying the amounts, planned timing, and 

8 purpose of such expenditures shall be deemed a 

9 binding commitment for purposes of this sec10 tion. 

11 (B) REDISTRIBUTION OF UNCOMMITTED

12 FUNDS.—A State higher education agency shall 

13 recover or deobligate any subgrant funds not 

14 committed in accordance with subparagraph 

15 (A), and redistribute such funds to other insti16 tutions of higher education that are— 

17 (i) eligible for subgrants under this 

18 section; and 

19 (ii) able to make use of such funds in 

20 a timely manner (including binding com21 mitments within 120 days after the re22 allocation). 

23 (e) APPLICATION OF GEPA.—The grant program au24 thorized in this section is an applicable program (as that 

25 term is defined in section 400 of the General Education 


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1 Provisions Act (20 U.S.C. 1221)) subject to section 439 

2 of such Act (20 U.S.C. 1232b). The Secretary shall, not3 withstanding section 437 of such Act (20 U.S.C. 1232) 

4 and section 553 of title 5, United States Code, establish 

5 such program rules as may be necessary to implement 

6 such grant program by notice in the Federal Register. 

7 (f) REPORTING.— 

8 (1) REPORTS BY INSTITUTIONS.—Not later 

9 than September 30, 2011, each institution of higher 

10 education receiving a subgrant under this section 

11 shall submit to the State higher education agency 

12 awarding such subgrant a report describing the 

13 projects for which such subgrant was received, in14 cluding— 

15 (A) a description of each project carried 

16 out, or planned to be carried out, with such 

17 subgrant, including the types of modernization, 

18 renovation, and repair to be completed by each 

19 such project; 

20 (B) the total amount of funds received by 

21 the institution under this section and the 

22 amount of such funds expended, as of the date 

23 of the report, on the such projects; 

24 (C) the actual or planned cost of each such 

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1 demic, energy, or environmental benefits result2 ing from such project; and 

3 (D) the total number of contracts, and 

4 amount of funding for such contracts, awarded 

5 by the institution to carry out such projects, as 

6 of the date of such report, including the num7 ber of contracts, and amount of funding for 

8 such contracts, awarded to local, small, minor9 ity-owned, women-owned, and veteran-owned 

10 businesses, as such terms are defined by the 

11 Small Business Act. 

12 (2) REPORTS BY STATES.—Not later than De13 cember 31, 2011, each State higher education agen14 cy receiving a grant under this section shall submit 

15 to the Secretary a report containing a compilation of 

16 all of the reports under paragraph (1) submitted to 

17 the agency by institutions of higher education. 

18 (3) REPORTS BY THE SECRETARY.—Not later 

19 than March 31, 2012, the Secretary shall submit to 

20 the Committee on Education and Labor in the 

21 House of Representatives and the Committee on 

22 Health, Education, Labor, and Pensions in the Sen23 ate and Committees on Appropriations of the House 

24 of Representatives and the Senate a report on 


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1 grants and subgrants made under this section, in2 cluding the information described in paragraph (1). 

3 (g) DEFINITIONS.—In this section: 

4 (1) CHPS CRITERIA.—The term ‘‘CHPS Cri5 teria’’ means the green building rating program de6 veloped by the Collaborative for High Performance 

7 Schools. 

8 (2) ENERGY STAR.—The term ‘‘Energy Star’’ 

9 means the Energy Star program of the United 

10 States Department of Energy and the United States 

11 Environmental Protection Agency. 

12 (3) GREEN GLOBES.—The term ‘‘Green 

13 Globes’’ means the Green Building Initiative envi14 ronmental design and rating system referred to as 

15 Green Globes. 

16 (4) INSTITUTION OF HIGHER EDUCATION.—The 

17 term ‘‘institution of higher education’’ has the 

18 meaning given such term in section 101 of the High19 er Education Act of 1965. 

20 (5) LEED GREEN BUILDING RATING SYS21 TEM.—The term ‘‘LEED Green Building Rating 

22 System’’ means the United States Green Building 

23 Council Leadership in Energy and Environmental 

24 Design green building rating standard referred to as 

25 the LEED Green Building Rating System. 


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1 (6) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Education. 

3 (7) STATE.—The term ‘‘State’’ has the mean4 ing given such term in section 103 of the Higher 

5 Education Act of 1965 (20 U.S.C. 1003). 

6 (8) STATE HIGHER EDUCATION AGENCY.—The 

7 term ‘‘State higher education agency’’ has the mean8 ing given such term in section 103 of the Higher 

9 Education Act of 1965 (20 U.S.C. 1003). 

10 SEC. 9303. MANDATORY PELL GRANTS. 

11 Section 401(b)(9)(A) of the Higher Education Act of 

12 1965 (20 U.S.C. 1070a(b)(9)(A)) is amended— 

13 (1) in clause (ii), by striking ‘‘$2,090,000,000’’ 

14 and inserting ‘‘$2,733,000,000’’; and 

15 (2) in clause (iii), by striking ‘‘$3,030,000,000’’ 

16 and inserting ‘‘$3,861,000,000’’. 

17 SEC. 9304. INCREASE STUDENT LOAN LIMITS. 

18 (a) AMENDMENTS.—Section 428H(d) of the Higher 

19 Education Act of 1965 (20 U.S.C. 1078–8(d)) is amend20 ed— 

21 (1) in paragraph (3)— 

22 (A) in subparagraph (A), by striking 

23 ‘‘$2,000’’ and inserting ‘‘$4,000’’; and 

24 (B) in subparagraph (B), by striking 

25 ‘‘$31,000’’ and inserting ‘‘$39,000’’; and 


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1 (2) in paragraph (4)— 

2 (A) in subparagraph (A)— 

3 (i) in clause (i)(I) and clause (iii)(I), 

4 by striking ‘‘$6,000’’ each place it appears 

5 and inserting ‘‘$8,000’’; and 

6 (ii) in clause (ii)(I) and clause 

7 (iii)(II), by striking ‘‘$7,000’’ each place it 

8 appears and inserting ‘‘$9,000’’; and 

9 (B) in subparagraph (B), by striking 

10 ‘‘$57,500’’ and inserting ‘‘$65,500’’. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 this section shall be effective for loans first disbursed on 

13 or after January 1, 2009. 

14 SEC. 9305. STUDENT LENDER SPECIAL ALLOWANCE. 

15 (a) TEMPORARY CALCULATION RULE.—Section 

16 438(b)(2)(I) of the Higher Education Act of 1965 (20 

17 U.S.C. 1087–1(b)(2)(I)) is amended by adding at the end 

18 the following new clause: 

19 ‘‘(vii) TEMPORARY CALCULATION

20 RULE DURING UNSTABLE COMMERCIAL

21 PAPER MARKETS.— 

22 ‘‘(I) CALCULATION BASED ON

23 LIBOR.—For the calendar quarter be24 ginning on October 1, 2008, and end25 ing on December 31, 2008, in comVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00193 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 puting the special allowance paid pur2 suant to this subsection with respect 

3 to loans for which the first disburse4 ment is made on or after January 1, 

5 2000, clause (i)(I) of this subpara6 graph shall be applied by substituting 

7 ‘the rate that is the average rate of 

8 the 3-month London Inter Bank Of9 fered Rate (LIBOR) for United 

10 States dollars in effect for each of the 

11 days in such quarter as compiled and 

12 released by the British Bankers Asso13 ciation, minus 0.13 percent,’ for ‘the 

14 average of the bond equivalent rates 

15 of the quotes of the 3-month commer16 cial paper (financial) rates in effect 

17 for each of the days in such quarter 

18 as reported by the Federal Reserve in 

19 Publication H–15 (or its successor) 

20 for such 3-month period’. 

21 ‘‘(II) PARTICIPATION INTER22 ESTS.—Notwithstanding subclause (I) 

23 of this clause, the special allowance 

24 paid on any loan held by a lender that 

25 has sold participation interests in 


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1 such loan to the Secretary shall be the 

2 rate computed under this subpara3 graph without regard to subclause (I) 

4 of this clause, unless the lender agrees 

5 that the participant’s yield with re6 spect to such participation interest is 

7 to be calculated in accordance with 

8 subclause (I) of this clause.’’. 

9 (b) CONFORMING AMENDMENTS.—Section 

10 438(b)(2)(I) of the Higher Education Act of 1965 (20 

11 U.S.C. 1087–1(b)(2)(I)) is further amended— 

12 (1) in clause (i)(II), by striking ‘‘such average 

13 bond equivalent rate’’ and inserting ‘‘the rate deter14 mined under subclause (I)’’; and 

15 (2) in clause (v)(III), by striking ‘‘(iv), and 

16 (vi)’’ and inserting ‘‘(iv), (vi), and (vii)’’. 

17 Subtitle D—Related Agencies 

18 CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

19 OPERATING EXPENSES

20 For an additional amount for ‘‘Operating Expenses’’ 

21 to carry out the Domestic Volunteer Service Act of 1973 

22 and the National and Community Service Act of 1990 

23 (‘‘1990 Act’’), $160,000,000, which shall be used to ex24 pand existing AmeriCorps grants: Provided, That funds 

25 made available under this heading may be used to provide 


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1 adjustments to awards made prior to September 30, 2010 

2 in order to waive the match requirement authorized in sec3 tion 121(e)(4) of part I of subtitle C of the 1990 Act, 

4 if the Chief Executive Officer of the Corporation for Na5 tional and Community Service (‘‘CEO’’) determines that 

6 the grantee has reduced capacity to meet this requirement: 

7 Provided further, That in addition to requirements identi8 fied herein, funds provided under this heading shall be 

9 subject to the terms and conditions under which funds are 

10 appropriated in fiscal year 2009: Provided further, That 

11 the CEO shall provide the Committees on Appropriations 

12 of the House of Representatives and the Senate a fiscal 

13 year 2009 operating plan for the funds appropriated under 

14 this heading prior to making any Federal obligations of 

15 such funds in fiscal year 2009, but not later than 90 days 

16 after the date of enactment of this Act, and a fiscal year 

17 2010 operating plan for such funds prior to making any 

18 Federal obligations of such funds in fiscal year 2010, but 

19 not later than November 1, 2009, that detail the allocation 

20 of resources and the increased number of volunteers sup21 ported by the AmeriCorps programs: Provided further, 

22 That the CEO shall provide to the Committees on Appro23 priations of the House of Representatives and the Senate 

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1 ing not later than November 1, 2009, and every 6 months 

2 thereafter as long as funding provided under this heading 

3 is available for obligation or expenditure. 

4 NATIONAL SERVICE TRUST

5 (INCLUDING TRANSFER OF FUNDS) 

6 For an additional amount for ‘‘National Service 

7 Trust’’ established under subtitle D of title I of the Na8 tional and Community Service Act of 1990 (‘‘1990 Act’’), 

9 $40,000,000, which shall remain available until expended: 

10 Provided, That the Corporation for National and Commu11 nity Service may transfer additional funds from the 

12 amount provided within ‘‘Operating Expenses’’ for grants 

13 made under subtitle C of the 1990 Act to this appropria14 tion upon determination that such transfer is necessary 

15 to support the activities of national service participants 

16 and after notice is transmitted to the Committees on Ap17 propriations of the House of Representatives and the Sen18 ate: Provided further, That the amount appropriated for 

19 or transferred to the National Service Trust may be in20 vested under section 145(b) of the 1990 Act without re21 gard to the requirement to apportion funds under 31 

22 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’’, $900,000,000, which shall be used as 

6 follows: 

7 (1) $400,000,000 for the construction and asso8 ciated costs to establish a new National Computer 

9 Center, which may include lease or purchase of real 

10 property: Provided, That the construction plan and 

11 site selection for such center shall be subject to re12 view and approval by the Office of Management and 

13 Budget: Provided further, That the Committees on 

14 Appropriations of the House of Representatives and 

15 the Senate shall be notified 15 days in advance of 

16 the lease or purchase of such site: Provided further, 

17 That such center shall continue to be a government18 operated facility; and 

19 (2) $500,000,000 for processing disability and 

20 retirement workloads: Provided, That up to 

21 $40,000,000 may be used by the Commissioner of 

22 Social Security for health information technology re23 search and activities to facilitate the adoption of 

24 electronic medical records in disability claims, in25 cluding the transfer of funds to ‘‘Supplemental SeVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00198 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 curity Income Program’’ to carry out activities 

2 under section 1110 of the Social Security Act. 

3 TITLE X—MILITARY CONSTRUC4 TION AND VETERANS AF5 FAIRS 

6 DEPARTMENT OF DEFENSE 

7 MILITARY CONSTRUCTION, ARMY

8 For an additional amount for ‘‘Military Construction, 

9 Army’’, $920,000,000: 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 of the 

14 amount provided under this heading, $600,000,000 shall 

15 be for training and recruit troop housing, $220,000,000 

16 shall be for permanent party troop housing, and 

17 $100,000,000 shall be for child development centers: Pro18 vided further, That not later than 30 days after the date 

19 of enactment of this Act, the Secretary of Defense shall 

20 submit to the Committees on Appropriations of the House 

21 of Representatives and the Senate an expenditure plan for 

22 funds provided under this heading. 

23 MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

24 For an additional amount for ‘‘Military Construction, 

25 Navy and Marine Corps’’, $350,000,000: Provided, That 


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1 notwithstanding any other provision of law, such funds 

2 may be obligated and expended to carry out planning and 

3 design and military construction projects in the United 

4 States not otherwise authorized by law: Provided further, 

5 That of the amount provided under this heading, 

6 $170,000,000 shall be for sailor and marine housing and 

7 $180,000,000 shall be for child development centers: Pro8 vided further, That not later than 30 days after the date 

9 of enactment of this Act, the Secretary of Defense shall 

10 submit to the Committees on Appropriations of the House 

11 of Representatives and the Senate an expenditure plan for 

12 funds provided under this heading. 

13 MILITARY CONSTRUCTION, AIR FORCE

14 For an additional amount for ‘‘Military Construction, 

15 Air Force’’, $280,000,000: Provided, That notwith16 standing any other provision of law, such funds may be 

17 obligated and expended to carry out planning and design 

18 and military construction projects in the United States not 

19 otherwise authorized by law: Provided further, That of the 

20 amount provided under this heading, $200,000,000 shall 

21 be for airmen housing and $80,000,000 shall be for child 

22 development centers: Provided further, That not later than 

23 30 days after the date of enactment of this Act, the Sec24 retary of Defense shall submit to the Committees on Ap25 propriations of the House of Representatives and the SenVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00200 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 ate an expenditure plan for funds provided under this 

2 heading. 

3 MILITARY CONSTRUCTION, DEFENSE-WIDE

4 For an additional amount for ‘‘Military Construction, 

5 Defense-Wide’’, $3,750,000,000, for the construction of 

6 hospitals and ambulatory surgery centers: Provided, That 

7 notwithstanding any other provision of law, such funds 

8 may be obligated and expended to carry out planning and 

9 design and military construction projects in the United 

10 States not otherwise authorized by law: Provided further, 

11 That not later than 30 days after the date of enactment 

12 of this Act, the Secretary of Defense shall submit to the 

13 Committees on Appropriations of the House of Represent14 atives and the Senate an expenditure plan for funds pro15 vided under this heading. 

16 MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

17 For an additional amount for ‘‘Military Construction, 

18 Army National Guard’’, $140,000,000: Provided, That 

19 notwithstanding any other provision of law, such funds 

20 may be obligated and expended to carry out planning and 

21 design and military construction projects in the United 

22 States not otherwise authorized by law: Provided further, 

23 That not later than 30 days after the date of enactment 

24 of this Act, the Secretary of Defense shall submit to the 

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1 atives and the Senate an expenditure plan for funds pro2 vided under this heading. 

3 MILITARY CONSTRUCTION, AIR NATIONAL GUARD

4 For an additional amount for ‘‘Military Construction, 

5 Air National Guard’’, $70,000,000: Provided, That not6 withstanding any other provision of law, such funds may 

7 be obligated and expended to carry out planning and de8 sign and military construction projects in the United 

9 States not otherwise authorized by law: Provided further, 

10 That not later than 30 days after the date of enactment 

11 of this Act, the Secretary of Defense shall submit to the 

12 Committees on Appropriations of the House of Represent13 atives and the Senate an expenditure plan for funds pro14 vided under this heading. 

15 MILITARY CONSTRUCTION, ARMY RESERVE

16 For an additional amount for ‘‘Military Construction, 

17 Army Reserve’’, $100,000,000: Provided, That notwith18 standing any other provision of law, such funds may be 

19 obligated and expended to carry out planning and design 

20 and military construction projects in the United States not 

21 otherwise authorized by law: Provided further, That not 

22 later than 30 days after the date of enactment of this Act, 

23 the Secretary of Defense shall submit to the Committees 

24 on Appropriations of the House of Representatives and the 


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1 Senate an expenditure plan for funds provided under this 

2 heading. 

3 MILITARY CONSTRUCTION, NAVY RESERVE

4 For an additional amount for ‘‘Military Construction, 

5 Navy Reserve’’, $30,000,000: Provided, That notwith6 standing any other provision of law, such funds may be 

7 obligated and expended to carry out planning and design 

8 and military construction projects in the United States not 

9 otherwise authorized by law: Provided further, That not 

10 later than 30 days after the date of enactment of this Act, 

11 the Secretary of Defense shall submit to the Committees 

12 on Appropriations of the House of Representatives and the 

13 Senate an expenditure plan for funds provided under this 

14 heading. 

15 MILITARY CONSTRUCTION, AIR FORCE RESERVE

16 For an additional amount for ‘‘Military Construction, 

17 Air Force Reserve’’, $60,000,000: Provided, That notwith18 standing any other provision of law, such funds may be 

19 obligated and expended to carry out planning and design 

20 and military construction projects in the United States not 

21 otherwise authorized by law: Provided further, That not 

22 later than 30 days after the date of enactment of this Act, 

23 the Secretary of Defense shall submit to the Committees 

24 on Appropriations of the House of Representatives and the 


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1 Senate an expenditure plan for funds provided under this 

2 heading. 

3 DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT

4 1990 

5 For an additional amount to be deposited into the 

6 Department of Defense Base Closure Account 1990, es7 tablished by section 2906(a)(1) of the Defense Base Clo8 sure and Realignment Act of 1990 (10 U.S.C. 2687 note), 

9 $300,000,000: Provided, That not later than 30 days after 

10 the date of enactment of this Act, the Secretary of Defense 

11 shall submit to the Committees on Appropriations of the 

12 House of Representatives and the Senate an expenditure 

13 plan for funds provided under this heading. 

14 DEPARTMENT OF VETERANS AFFAIRS 

15 VETERANS HEALTH ADMINISTRATION

16 MEDICAL FACILITIES

17 For an additional amount for ‘‘Medical Facilities’’ for 

18 non-recurring maintenance, including energy projects, 

19 $950,000,000: Provided, That not later than 30 days after 

20 the date of enactment of this Act, the Secretary of Vet21 erans Affairs shall submit to the Committees on Appro22 priations of the House of Representatives and the Senate 

23 an expenditure plan for funds provided under this head24 ing. 


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1 NATIONAL CEMETERY ADMINISTRATION

2 For an additional amount for ‘‘National Cemetery 

3 Administration’’ for monument and memorial repairs, 

4 $50,000,000: Provided, That not later than 30 days after 

5 the date of enactment of this Act, the Secretary of Vet6 erans Affairs shall submit to the Committees on Appro7 priations of the House of Representatives and the Senate 

8 an expenditure plan for funds provided under this head9 ing. 

10 TITLE XI—DEPARTMENT OF 

11 STATE 

12 DEPARTMENT OF STATE 

13 ADMINISTRATION OF FOREIGN AFFAIRS

14 CAPITAL INVESTMENT FUND

15 For an additional amount for ‘‘Capital Investment 

16 Fund’’, $276,000,000, of which up to $120,000,000 shall 

17 be available for the design and construction of a backup 

18 information management facility in the United States to 

19 support mission-critical operations and projects, and up 

20 to $98,527,000 shall be available to carry out the Depart21 ment of State’s responsibilities under the Comprehensive 

22 National Cybersecurity Initiative: Provided, That the Sec23 retary of State shall submit to the Committees on Appro24 priations of the House of Representatives and the Senate 


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1 within 90 days of enactment of this Act a detailed spend2 ing plan for funds appropriated under this heading. 

3 INTERNATIONAL COMMISSIONS

4 INTERNATIONAL BOUNDARY AND WATER COMMISSION, 

5 UNITED STATES AND MEXICO

6 CONSTRUCTION

7 (INCLUDING TRANSFER OF FUNDS)

8 For an additional amount for ‘‘Construction’’ for the 

9 water quantity program to meet immediate repair and re10 habilitation requirements, $224,000,000: Provided, That 

11 up to $2,000,000 may be transferred to, and merged with, 

12 funds available under the heading ‘‘International Bound13 ary and Water Commission, United States and Mexico— 

14 Salaries and Expenses’’, and such amount shall be in lieu 

15 of amounts available under section 1106 of this Act: Pro16 vided, That the Secretary of State shall submit to the 

17 Committees on Appropriations of the House of Represent18 atives and the Senate within 90 days of enactment of this 

19 Act a detailed spending plan for funds appropriated under 

20 this heading. 


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1 TITLE XII—TRANSPORTATION, 

2 AND HOUSING AND URBAN 

3 DEVELOPMENT 

4 DEPARTMENT OF TRANSPORTATION 

5 FEDERAL AVIATION ADMINISTRATION

6 GRANTS-IN-AID FOR AIRPORTS

7 For an additional amount for ‘‘Grants-in-Aid for Air8 ports’’, to enable the Secretary of Transportation to make 

9 grants for discretionary projects as authorized by sub10 chapter I of chapter 471 and subchapter I of chapter 475 

11 of title 49, United States Code, $3,000,000,000: Provided, 

12 That such funds shall not be subject to apportionment for13 mulas, special apportionment categories, or minimum per14 centages under chapter 471: Provided further, That the 

15 conditions, certifications, and assurances required for 

16 grants under subchapter I of chapter 471 of such title 

17 apply: Provided further, That for purposes of applying sec18 tion 1104 of this Act to this appropriation, the deadline 

19 for grantees to enter into contracts or other binding com20 mitments to make use of not less than 50 percent of the 

21 funds awarded shall be 120 days after award of the grant. 

22 FEDERAL HIGHWAY ADMINISTRATION

23 HIGHWAY INFRASTRUCTURE INVESTMENT

24 For projects and activities eligible under section 133 

25 of title 23, United States Code, section 144 of such title 


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1 (without regard to subsection (g)), and sections 103, 119, 

2 134, 148, and 149 of such title, $30,000,000,000, of 

3 which $300,000,000 shall be for Indian reservation roads 

4 under section 204 of such title; $250,000,000 shall be for 

5 park roads and parkways under section 204 of such title; 

6 $20,000,000 shall be for highway surface transportation 

7 and technology training under section 140(b) of such title; 

8 and $20,000,000 shall be for disadvantaged business en9 terprises bonding assistance under section 332(e) of title 

10 49, United States Code: Provided, That the amount set 

11 aside from this appropriation pursuant to section 1106 of 

12 this Act shall not be more than 0.2 percent of the funds 

13 made available under this heading instead of the percent14 age specified in such section: Provided further, That, after 

15 making the set-asides authorized by the previous provisos, 

16 the funds made available under this heading shall be dis17 tributed among the States, and Puerto Rico, American 

18 Samoa, Guam, the Virgin Islands, and the Commonwealth 

19 of the Northern Mariana Islands, in the same ratio as the 

20 obligation limitation for fiscal year 2008 was distributed 

21 among the States in accordance with the formula specified 

22 in section 120(a)(6) of division K of Public Law 110–161, 

23 but, in the case of the Puerto Rico Highway Program and 

24 the Territorial Highway Program, under section 120(a)(5) 

25 of such division: Provided further, That 45 percent of the 


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1 funds distributed to a State under this heading shall be 

2 suballocated within the State in the manner and for the 

3 purposes described in section 133(d) of title 23, United 

4 States Code, (without regard to the comparison to fiscal 

5 year 2005 in paragraph (2)): Provided further, That in 

6 selecting projects to be funded, recipients shall give pri7 ority to projects that can award contracts within 120 days 

8 of enactment of this Act, are included in an approved 

9 Statewide Transportation Improvement Program (STIP) 

10 and/or Metropolitan Transportation Improvement Pro11 gram (TIP), are projected for completion within a three12 year time frame, and are located in economically dis13 tressed areas as defined by section 301 of the Public 

14 Works and Economic Development Act of 1965, as 

15 amended (42 U.S.C. 3161): Provided further, That funds 

16 made available under this heading shall be administered 

17 as if apportioned under chapter 1 of title 23, United 

18 States Code, except for funds made available for Indian 

19 reservation roads and park roads and parkways which 

20 shall be administered in accordance with chapter 2 of title 

21 23, United States Code: Provided further, That the Fed22 eral share payable on account of any project or activity 

23 carried out with funds made available under this heading 

24 shall, at the option of the recipient, be up to 100 percent 

25 of the total cost thereof: Provided further, That funds 


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1 made available by this Act shall not be obligated for the 

2 purposes authorized under section 115(b) of title 23, 

3 United States Code: Provided further, That the provisions 

4 of section 1101(b) of Public Law 109–59 shall apply to 

5 funds made available under this heading: Provided further, 

6 That, in lieu of the redistribution required by section 

7 1104(b) of this Act, if less than 50 percent of the funds 

8 made available to each State and territory under this 

9 heading are obligated within 180 days after the date of 

10 distribution of those funds to the States and territories, 

11 then the portion of the 50 percent of the total funding 

12 distributed to the State or territory that has not been obli13 gated shall be redistributed, in the manner described in 

14 section 120(c) of division K of Public Law 110–161, to 

15 those States and territories that have obligated at least 

16 50 percent of the funds made available under this heading 

17 and are able to obligate amounts in addition to those pre18 viously distributed, except that, for those funds suballo19 cated within the State, if less than 50 percent of the funds 

20 so suballocated within the State are obligated within 150 

21 days of suballocation, then the portion of the 50 percent 

22 of funding so suballocated that has not been obligated will 

23 be returned to the State for use anywhere in the State 

24 prior to being redistributed in accordance with the first 

25 part of this proviso: Provided further, That, in lieu of the 


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1 redistribution required by section 1104(b) of this Act, any 

2 funds made available under this heading that are not obli3 gated by August 1, 2010, shall be redistributed, in the 

4 manner described in section 120(c) of division K of Public 

5 Law 110–161, to those States able to obligate amounts 

6 in addition to those previously distributed, except that 

7 funds suballocated within the State that are not obligated 

8 by June 1, 2010, will be returned to the State for use 

9 anywhere in the State prior to being redistributed in ac10 cordance with the first part of this proviso: Provided fur11 ther, That notwithstanding section 1103 of this Act, funds 

12 made available under this heading shall be apportioned not 

13 later than 7 days after the date of enactment of this Act. 

14 FEDERAL RAILROAD ADMINISTRATION

15 CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL

16 SERVICE

17 For an additional amount for ‘‘Capital Assistance for 

18 Intercity Passenger Rail Service’’ to enable the Secretary 

19 of Transportation to make grants for capital costs as au20 thorized by chapter 244 of title 49 United States Code, 

21 $300,000,000: Provided, That notwithstanding section 

22 1103 of this Act, the Secretary shall give preference to 

23 projects for the repair, rehabilitation, upgrade, or pur24 chase of railroad assets or infrastructure that can be 

25 awarded within 180 days of enactment of this Act: ProVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00211 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 vided further, That in awarding grants for the acquisition 

2 of a piece of rolling stock or locomotive, the Secretary shall 

3 give preference to FRA-compliant rolling stock and loco4 motives: Provided further, That the Secretary shall give 

5 preference to projects that support the development of 

6 intercity high speed rail service: Provided further, That the 

7 Federal share shall be, at the option of the recipient, up 

8 to 100 percent. 

9 CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL

10 RAILROAD PASSENGER CORPORATION

11 For an additional amount for ‘‘Capital and Debt 

12 Service Grants to the National Railroad Passenger Cor13 poration’’ (Amtrak) to enable the Secretary of Transpor14 tation to make capital grants to Amtrak as authorized by 

15 section 101(c) of the Passenger Rail Investment and Im16 provement Act of 2008 (Public Law 110–432), 

17 $800,000,000: Provided, That priority shall be given to 

18 projects for the repair, rehabilitation, or upgrade of rail19 road assets or infrastructure: Provided further, That none 

20 of the funds under this heading shall be used to subsidize 

21 the operating losses of Amtrak: Provided further, Notwith22 standing section 1103 of this Act, funds made available 

23 under this heading shall be awarded not later than 7 days 

24 after the date of enactment of this Act. 


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1 FEDERAL TRANSIT ADMINISTRATION

2 TRANSIT CAPITAL ASSISTANCE

3 For transit capital assistance grants, 

4 $6,000,000,000, of which $5,400,000,000 shall be for 

5 grants under section 5307 of title 49, United States Code 

6 and shall be apportioned in accordance with section 5336 

7 of such title (other than subsections (i)(1) and (j)) but 

8 may not be combined or commingled with any other funds 

9 apportioned under such section 5336, and of which 

10 $600,000,000 shall be for grants under section 5311 of 

11 such title and shall be apportioned in accordance with such 

12 section 5311 but may not be combined or commingled with 

13 any other funds apportioned under that section: Provided, 

14 That of the funds provided for section 5311 under this 

15 heading, 3 percent shall be made available for section 

16 5311(c)(1): Provided further, That applicable chapter 53 

17 requirements shall apply except that the Federal share of 

18 the costs for which a grant is made under this heading 

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

20 Provided further, In lieu of the requirements of section 

21 1103 of this Act, funds made available under this heading 

22 shall be apportioned not later than 7 days after the date 

23 of enactment of this Act: Provided further, That for pur24 poses of applying section 1104 of this Act to this appro25 priation, the deadline for grantees to enter into obligations 


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1 to make use of not less than 50 percent of the funds 

2 awarded shall be 180 days after apportionment: Provided 

3 further, That the provisions of section 1101(b) of Public 

4 Law 109–59 shall apply to funds made available under 

5 this heading: Provided further, That notwithstanding any 

6 other provision of law, of the funds apportioned in accord7 ance with section 5336, up to three-quarters of 1 percent 

8 shall be available for administrative expenses and program 

9 management oversight and of the funds apportioned in ac10 cordance with section 5311, up to one-half of 1 percent 

11 shall be available for administrative expenses and program 

12 management oversight and both amounts shall remain 

13 available for obligation until September 30, 2012: Pro14 vided further, That the preceding proviso shall apply in 

15 lieu of the provisions in section 1106 of this Act. 

16 FIXED GUIDEWAY INFRASTRUCTURE INVESTMENT

17 For an amount for capital expenditures authorized 

18 under section 5309(b)(2) of title 49, United States Code, 

19 $2,000,000,000: Provided, That the Secretary of Trans20 portation shall apportion funds under this heading pursu21 ant to the formula set forth in section 5337 of title 49, 

22 United States Code: Provided further, That the funds ap23 propriated under this heading shall not be commingled 

24 with funds available under the Formula and Bus Grants 

25 account: Provided further, In lieu of the requirements of 


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1 section 1103 of this Act, funds made available under this 

2 heading shall be apportioned not later than 7 days after 

3 the date of enactment of this Act: Provided further, That 

4 for purposes of applying section 1104 of this Act to this 

5 appropriation, the deadline for grantees to enter into obli6 gations to make use of not less than 50 percent of the 

7 funds awarded shall be 180 days after apportionment: 

8 Provided further, That applicable chapter 53 requirements 

9 shall apply except that the Federal share of the costs for 

10 which a grant is made under this heading shall be, at the 

11 option of the recipient, up to 100 percent: Provided fur12 ther, That the provisions of section 1101(b) of Public Law 

13 109–59 shall apply to funds made available under this 

14 heading: Provided further, That notwithstanding any other 

15 provision of law, up to 1 percent of the funds under this 

16 heading shall be available for administrative expenses and 

17 program management oversight and shall remain available 

18 for obligation until September 30, 2012: Provided further, 

19 That the preceding proviso shall apply in lieu of the provi20 sions in section 1106 of this Act. 

21 CAPITAL INVESTMENT GRANTS

22 For an additional amount for ‘‘Capital Investment 

23 Grants’’, as authorized under section 5338(c)(4) of title 

24 49, United States Code, and allocated under section 

25 5309(m)(2)(A) of such title, to enable the Secretary of 


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1 Transportation to make discretionary grants as authorized 

2 by section 5309(d) and (e) of such title, $1,000,000,000: 

3 Provided, That such amount shall be allocated without re4 gard to the limitation under section 5309(m)(2)(A)(i): 

5 Provided further, That in selecting projects to be funded, 

6 priority shall be given to projects that are currently in con7 struction or are able to award contracts based on bids 

8 within 120 days of enactment of this Act: Provided further, 

9 That for purposes of applying section 1104 of this Act 

10 to this appropriation, the deadline for grantees to enter 

11 into contracts or other binding commitments to make use 

12 of not less than 50 percent of the funds awarded shall 

13 be 120 days after award: Provided further, That the provi14 sions of section 1101(b) of Public Law 109–59 shall apply 

15 to funds made available under this heading: Provided fur16 ther, That applicable chapter 53 requirements shall apply, 

17 except that notwithstanding any other provision of law, 

18 up to 1 percent of the funds under this heading shall be 

19 available for administrative expenses and program man20 agement oversight and shall remain available for obliga21 tion until September 30, 2012: Provided further, That the 

22 preceding proviso shall apply in lieu of the provisions in 

23 section 1106 of this Act. 


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1 DEPARTMENT OF HOUSING AND URBAN 

2 DEVELOPMENT 

3 PUBLIC AND INDIAN HOUSING

4 PUBLIC HOUSING CAPITAL FUND

5 For an additional amount for ‘‘Public Housing Cap6 ital Fund’’ to carry out capital and management activities 

7 for public housing agencies, as authorized under section 

8 9 of the United States Housing Act of 1937 (42 U.S.C. 

9 1437g) (‘‘the Act’’), $5,000,000,000: Provided, That the 

10 Secretary of Housing and Urban Development shall dis11 tribute at least $4,000,000,000 of this amount by the 

12 same formula used for amounts made available in fiscal 

13 year 2008: Provided further, That public housing authori14 ties shall give priority to capital projects that can award 

15 contracts based on bids within 120 days from the date 

16 the funds are made available to the public housing au17 thorities: Provided further, That public housing agencies 

18 shall give priority consideration to the rehabilitation of va19 cant rental units: Provided further, That notwithstanding 

20 any other provision of the Act or regulations, (1) funding 

21 provided herein may not be used for Operating Fund ac22 tivities pursuant to section 9(g) of the Act, and (2) any 

23 restriction of funding to replacement housing uses shall 

24 be inapplicable: Provided further, That public housing 

25 agencies shall prioritize capital projects underway or alVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00217 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 ready in their 5-year plans: Provided further, That of the 

2 amount provided under this heading, the Secretary may 

3 obligate up to $1,000,000,000, for competitive grants to 

4 public housing authorities for activities including: (1) in5 vestments that leverage private sector funding or financ6 ing for housing renovations and energy conservation ret7 rofit investments; (2) rehabilitation of units using sustain8 able materials and methods that improve energy efficiency, 

9 reduce energy costs, or preserve and improve units with 

10 good access to public transportation or employment cen11 ters; (3) increase the availability of affordable rental hous12 ing by expediting rehabilitation projects to bring vacant 

13 units into use or by filling the capital investment gap for 

14 redevelopment or replacement housing projects which have 

15 been approved or are otherwise ready to proceed but are 

16 stalled due to the inability to obtain anticipated private 

17 capital; or (4) address the needs of seniors and persons 

18 with disabilities through improvements to housing and re19 lated facilities which attract or promote the coordinated 

20 delivery of supportive services: Provided further, That the 

21 Secretary may waive statutory or regulatory provisions re22 lated to the obligation and expenditure of capital funds 

23 if necessary to facilitate the timely expenditure of funds 

24 (except for requirements related to fair housing, non25 discrimination, labor standards, and the environment). 


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1 ELDERLY, DISABLED, AND SECTION 8 ASSISTED HOUSING

2 ENERGY RETROFIT

3 For grants or loans to owners of properties receiving 

4 project-based assistance pursuant to section 202 of the 

5 Housing Act of 1959 (12 U.S.C. 17012), section 811 of 

6 the Cranston-Gonzalez National Affordable Housing Act 

7 (42 U.S.C. 8013), or section 8 of the United States Hous8 ing Act of 1937 (42 U.S.C. 1437f), to accomplish energy 

9 retrofit investments, $2,500,000,000: Provided, That such 

10 loans or grants shall be provided through the Office of 

11 Affordable Housing Preservation of the Department of 

12 Housing and Urban Development, on such terms and con13 ditions as the Secretary of Housing and Urban Develop14 ment deems appropriate: Provided further, That eligible 

15 owners must have at least a satisfactory management re16 view rating, be in substantial compliance with applicable 

17 performance standards and legal requirements, and com18 mit to an additional period of affordability determined by 

19 the Secretary: Provided further, That the Secretary shall 

20 undertake appropriate underwriting and oversight with re21 spect to such transactions: Provided further, That the Sec22 retary may set aside funds made available under this 

23 heading for an efficiency incentive payable upon satisfac24 tory completion of energy retrofit investments, and may 

25 provide additional incentives if such investments resulted 


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1 in extraordinary job creation for low-income and very low2 income persons: Provided further, that of the funds pro3 vided under this heading, 1 percent shall be available only 

4 for staffing, training, technical assistance, technology, 

5 monitoring, research and evaluation activities. 

6 NATIVE AMERICAN HOUSING BLOCK GRANTS

7 For an additional amount for ‘‘Native American 

8 Housing Block Grants’’, as authorized under title I of the 

9 Native American Housing Assistance and Self-Determina10 tion Act of 1996 (‘‘NAHASDA’’) (25 U.S.C. 4111 et 

11 seq.), $500,000,000: Provided, That $250,000,000 of the 

12 amount appropriated under this heading shall be distrib13 uted according to the same funding formula used in fiscal 

14 year 2008: Provided further, That in selecting projects to 

15 be funded, recipients shall give priority to projects that 

16 can award contracts based on bids within 120 days from 

17 the date that funds are available to the recipients: Pro18 vided further, That in allocating the funds appropriated 

19 under this heading, the Secretary of Housing and Urban 

20 Development shall not require an additional action plan 

21 from grantees: Provided further, That the Secretary may 

22 obligate $250,000,000 of the amount appropriated under 

23 this heading for competitive grants to eligible entities that 

24 apply for funds as authorized under NAHASDA: Provided 

25 further, That in awarding competitive funds, the Secretary 


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1 shall give priority to projects that will spur construction 

2 and rehabilitation and will create employment opportuni3 ties for low-income and unemployed persons. 

4 COMMUNITY PLANNING AND DEVELOPMENT

5 COMMUNITY DEVELOPMENT FUND

6 For an additional amount for ‘‘Community Develop7 ment Fund’’ $1,000,000,000, to carry out the community 

8 development block grant program under title I of the 

9 Housing and Community Development Act of 1974 (42 

10 U.S.C. 5301 et seq.): Provided, That the amount appro11 priated in this paragraph shall be distributed according 

12 to the same funding formula used in fiscal year 2008: Pro13 vided further, That in allocating the funds appropriated 

14 in this paragraph, the Secretary of Housing and Urban 

15 Development shall not require an additional action plan 

16 from grantees: Provided further, That in selecting projects 

17 to be funded, recipients shall give priority to projects that 

18 can award contracts based on bids within 120 days from 

19 the date the funds are made available to the recipients; 

20 Provided further, That in administering funds provided in 

21 this paragraph, the Secretary may waive any provision of 

22 any statute or regulation that the Secretary administers 

23 in connection with the obligation by the Secretary or the 

24 use by the recipient of these funds (except for require25 ments related to fair housing, nondiscrimination, labor 


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1 standards, and the environment), upon a finding that such 

2 waiver is required to facilitate the timely use of such funds 

3 and would not be inconsistent with the overall purpose of 

4 the statute. 

5 For a further additional amount for ‘‘Community De6 velopment Fund’’, $4,190,000,000, to be used for neigh7 borhood stabilization activities related to emergency as8 sistance for the redevelopment of abandoned and fore9 closed homes as authorized under division B, title III of 

10 the Housing and Economic Recovery Act of 2008 (Public 

11 Law 110–289), of which— 

12 (1) not less than $3,440,000,000 shall be allo13 cated by a competition for which eligible entities 

14 shall be States, units of general local government, 

15 and nonprofit entities or consortia of nonprofit enti16 ties: Provided, That the award criteria for such com17 petition shall include grantee capacity, leveraging 

18 potential, targeted impact of foreclosure prevention, 

19 and any additional factors determined by the Sec20 retary of Housing and Urban Development: Provided 

21 further, that the Secretary may establish a minimum 

22 grant size: Provided further, That amounts made 

23 available under this Section may be used to (A) es24 tablish financing mechanisms for purchase and rede25 velopment of foreclosed-upon homes and residential 


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1 properties, including such mechanisms as soft-sec2 onds, loan loss reserves, and shared-equity loans for 

3 low- and moderate-income homebuyers; (B) purchase 

4 and rehabilitate homes and residential properties 

5 that have been abandoned or foreclosed upon, in 

6 order to sell or rent such homes and properties; (C) 

7 establish and operate land banks for homes that 

8 have been foreclosed upon; (D) demolish foreclosed 

9 properties that have become blighted structures; and 

10 (E) redevelop demolished or vacant foreclosed prop11 erties in order to sell or rent such properties; and 

12 (2) up to $750,000,000 shall be awarded by 

13 competition to nonprofit entities or consortia of non14 profit entities to provide community stabilization as15 sistance by (A) accelerating state and local govern16 ment and nonprofit productivity; (B) increasing the 

17 scale and efficiency of property transfers of fore18 closed and vacant residential properties from finan19 cial institutions and government entities to qualified 

20 local housing providers in order to return the prop21 erties to productive affordable housing use; (C) 

22 building industry and property management capac23 ity; and (D) partnering with private sector real es24 tate developers and contractors and leveraging pri25 vate sector capital: Provided further, That such comVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00223 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 munity stabilization assistance shall be provided pri2 marily in States and areas with high rates of de3 faults and foreclosures to support the acquisition, re4 habilitation and property management of single-fam5 ily and multi-family homes and to work in partner6 ship with the private sector real estate industry and 

7 to leverage available private and public funds for 

8 those purposes: Provided further, That for purposes 

9 of this paragraph qualified local housing providers 

10 shall be nonprofit organizations with demonstrated 

11 capabilities in real estate development or acquisition 

12 and rehabilitation or property management of single13 or multi-family homes, or local or state governments 

14 or instrumentalities of such governments: Provided 

15 further, That qualified local housing providers shall 

16 be expected to utilize and leverage additional local 

17 nonprofit, governmental, for-profit and private re18 sources: 

19 Provided further, That in the case of any foreclosure on 

20 any dwelling or residential real property acquired with any 

21 amounts made available under this heading, any successor 

22 in interest in such property pursuant to the foreclosure 

23 shall assume such interest subject to—(1) the provision 

24 by such successor in interest of a notice to vacate to any 

25 bona fide tenant at least 90 days before the effective date 


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1 of such notice; and (2) the rights of any bona fide tenant, 

2 as of the date of such notice of foreclosure (A) under any 

3 bona fide lease entered into before the notice of foreclosure 

4 to occupy the premises until the end of the remaining term 

5 of the lease, except that a successor in interest may termi6 nate a lease effective on the date of sale of the unit to 

7 a purchaser who will occupy the unit as a primary resi8 dence, subject to the receipt by the tenant of the 90-day 

9 notice under this paragraph; or (B) without a lease or with 

10 a lease terminable at will under State law, subject to the 

11 receipt by the tenant of the 90-day notice under this para12 graph, except that nothing in this paragraph shall affect 

13 the requirements for termination of any Federal- or State14 subsidized tenancy or of any State or local law that pro15 vides longer time periods or other additional protections 

16 for tenants: Provided further, That, for purposes of this 

17 paragraph, a lease or tenancy shall be considered bona fide 

18 only if (1) the mortgagor under the contract is not the 

19 tenant; (2) the lease or tenancy was the result of an arms20 length transaction; and (3) the lease or tenancy requires 

21 the receipt of rent that is not substantially less than fair 

22 market rent for the property: Provided further, That the 

23 recipient of any grant or loan from amounts made avail24 able under this heading may not refuse to lease a dwelling 

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1 er of a voucher or certificate of eligibility under section 

2 8 of the United States Housing Act of 1937 (42 U.S.C. 

3 1437f) because of the status of the prospective tenant as 

4 such a holder: Provided further, That in the case of any 

5 qualified foreclosed housing for which funds made avail6 able under this heading are used and in which a recipient 

7 of assistance under section 8(o) of the U.S. Housing Act 

8 of 1937 resides at the time of acquisition or financing, 

9 the owner and any successor in interest shall be subject 

10 to the lease and to the housing assistance payments con11 tract for the occupied unit: Provided further, That 

12 vacating the property prior to sale shall not constitute 

13 good cause for termination of the tenancy unless the prop14 erty is unmarketable while occupied or unless the owner 

15 or subsequent purchaser desires the unit for personal or 

16 family use: Provided further, That this paragraph shall not 

17 preempt any State or local law that provides more protec18 tion for tenants: Provided further, That amounts made 

19 available under this heading may be used for the costs 

20 of demolishing foreclosed housing that is deteriorated or 

21 unsafe: Provided further, That the amount for demolition 

22 of such housing may not exceed 10 percent of amounts 

23 allocated under this paragraph to States and units of gen24 eral local government: Provided further, That no amounts 

25 from a grant made under this paragraph may be used to 


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1 demolish any public housing (as such term is defined in 

2 section 3 of the United States Housing Act of 1937 (42 

3 U.S.C. 1437a)): Provided further, That section 2301(d)(4) 

4 of the Housing and Economic Recovery Act of 2008 (Pub5 lic Law 110–289) is repealed. 

6 HOME INVESTMENT PARTNERSHIPS PROGRAM

7 For an additional amount for ‘‘HOME Investment 

8 Partnerships Program’’ as authorized under Title II of the 

9 Cranston-Gonzalez National Affordable Housing Act (‘‘the 

10 Act’’), $1,500,000,000: Provided, That the amount appro11 priated under this heading shall be distributed according 

12 to the same funding formula used in fiscal year 2008: Pro13 vided further, That the Secretary of Housing and Urban 

14 Development may waive statutory or regulatory provisions 

15 related to the obligation of such funds if necessary to fa16 cilitate the timely expenditure of funds (except for require17 ments related to fair housing, nondiscrimination, labor 

18 standards, and the environment): Provided further, That 

19 in selecting projects to be funded, recipients shall give pri20 ority to projects that can award contracts based on bids 

21 within 120 days from the date that funds are available 

22 to the recipients. 


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1 SELF-HELP AND ASSISTED HOMEOWNERSHIP

2 OPPORTUNITY PROGRAM

3 For an additional amount for ‘‘Self-Help and As4 sisted Homeownership Opportunity Program’’, as author5 ized under section 11 of the Housing Opportunity Pro6 gram Extension Act of 1996, $10,000,000: Provided, That 

7 in awarding competitive grant funds, the Secretary of 

8 Housing and Urban Development shall give priority to the 

9 provision and rehabilitation of sustainable, affordable sin10 gle and multifamily units in low-income, high-need rural 

11 areas: Provided further, That in selecting projects to be 

12 funded, grantees shall give priority to projects that can 

13 award contracts based on bids within 120 days from the 

14 date the funds are made available to the grantee. 

15 HOMELESS ASSISTANCE GRANTS

16 For an additional amount for ‘‘Homeless Assistance 

17 Grants’’, for the emergency shelter grants program as au18 thorized under subtitle B of tile IV of the McKinney-Vento 

19 Homeless Assistance Act, $1,500,000,000: Provided, That 

20 in addition to homeless prevention activities specified in 

21 the emergency shelter grant program, funds provided 

22 under this heading may be used for the provision of short23 term or medium-term rental assistance; housing relocation 

24 and stabilization services including housing search, medi25 ation or outreach to property owners, legal services, credit 


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1 repair, resolution of security or utility deposits, utility pay2 ments, rental assistance for a final month at a location, 

3 and moving costs assistance; or other appropriate home4 lessness prevention activities; Provided further, That these 

5 funds shall be allocated pursuant to the formula author6 ized by section 413 of such Act: Provided further, That 

7 the Secretary of Housing and Urban Development may 

8 waive statutory or regulatory provisions related to the obli9 gation and use of emergency shelter grant funds necessary 

10 to facilitate the timely expenditure of funds. 

11 OFFICE OF HEALTHY HOMES AND LEAD HAZARD

12 CONTROL

13 LEAD HAZARD REDUCTION

14 For an additional amount for ‘‘Lead Hazard Reduc15 tion’’, for the Lead Hazard Reduction Program as author16 ized by section 1011 of the Residential Lead-Based Paint 

17 Hazard Reduction Act of 1992, $100,000,000: Provided, 

18 That for purposes of environmental review, pursuant to 

19 the National Environmental Policy Act of 1969 (42 U.S.C. 

20 4321 et seq.) and other provisions of law that further the 

21 purposes of such Act, a grant under the Healthy Homes 

22 Initiative, Operation Lead Elimination Action Plan 

23 (LEAP), or the Lead Technical Studies program under 

24 this heading or under prior appropriations Acts for such 

25 purposes under this heading, shall be considered to be 


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1 funds for a special project for purposes of section 305(e) 

2 of the Multifamily Housing Property Disposition Reform 

3 Act of 1994: Provided further, That of the total amount 

4 made available under this heading, $30,000,000 shall be 

5 made available on a competitive basis for areas with the 

6 highest lead paint abatement needs. 

7 GENERAL PROVISIONS, THIS TITLE 

8 SEC. 12001. MAINTENANCE OF EFFORT AND REPORTING 

9 REQUIREMENTS TO ENSURE TRANSPARENCY 

10 AND ACCOUNTABILITY. 

11 (a) MAINTENANCE OF EFFORT.—Not later than 30 

12 days after the date of enactment of this Act, for each 

13 amount that is distributed to a State or agency thereof 

14 from an appropriation in this Act for a covered program, 

15 the Governor of the State shall certify that the State will 

16 maintain its effort with regard to State funding for the 

17 types of projects that are funded by the appropriation. As 

18 part of this certification, the Governor shall submit to the 

19 covered agency a statement identifying the amount of 

20 funds the State planned to expend as of the date of enact21 ment of this Act from non-Federal sources in the period 

22 beginning on the date of enactment of this Act through 

23 September 30, 2010, for the types of projects that are 

24 funded by the appropriation. 

25 (b) PERIODIC REPORTS.— 


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1 (1) IN GENERAL.—Notwithstanding any other 

2 provision of law, each grant recipient shall submit to 

3 the covered agency from which they received funding 

4 periodic reports on the use of the funds appropriated 

5 in this Act for covered programs. Such reports shall 

6 be collected and compiled by the covered agency and 

7 transmitted to Congress. 

8 (2) CONTENTS OF REPORTS.—For amounts re9 ceived under each covered program by a grant re10 cipient under this Act, the grant recipient shall in11 clude in the periodic reports information tracking— 

12 (A) the amount of Federal funds appro13 priated, allocated, obligated, and outlayed under 

14 the appropriation; 

15 (B) the number of projects that have been 

16 put out to bid under the appropriation and the 

17 amount of Federal funds associated with such 

18 projects; 

19 (C) the number of projects for which con20 tracts have been awarded under the appropria21 tion and the amount of Federal funds associ22 ated with such contracts; 

23 (D) the number of projects for which work 

24 has begun under such contracts and the 


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1 amount of Federal funds associated with such 

2 contracts; 

3 (E) the number of projects for which work 

4 has been completed under such contracts and 

5 the amount of Federal funds associated with 

6 such contracts; 

7 (F) the number of jobs created or sus8 tained by the Federal funds provided for 

9 projects under the appropriation, including in10 formation on job sectors and pay levels; and 

11 (G) for each covered program report infor12 mation tracking the actual aggregate expendi13 tures by each grant recipient from non-Federal 

14 sources for projects eligible for funding under 

15 the program during the period beginning on the 

16 date of enactment of this Act through Sep17 tember 30, 2010, as compared to the level of 

18 such expenditures that were planned to occur 

19 during such period as of the date of enactment 

20 of this Act. 

21 (3) TIMING OF REPORTS.—Each grant recipient 

22 shall submit the first of the periodic reports required 

23 under this subsection not later than 30 days after 

24 the date of enactment of this Act and shall submit 

25 updated reports not later than 60 days, 120 days, 


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1 180 days, 1 year, and 3 years after such date of en2 actment. 

3 (c) DEFINITIONS.—In this section, the following defi4 nitions apply: 

5 (1) COVERED AGENCY.—The term ‘‘covered 

6 agency’’ means the Federal Aviation Administration, 

7 the Federal Highway Administration, the Federal 

8 Railroad Administration, and the Federal Transit 

9 Administration of the Department of Transpor10 tation. 

11 (2) COVERED PROGRAM.—The term ‘‘covered 

12 program’’ means funds appropriated in this Act for 

13 ‘‘Grants-in-Aid for Airports’’ to the Federal Aviation 

14 Administration; for ‘‘Highway Infrastructure Invest15 ment’’ to the Federal Highway Administration; for 

16 ‘‘Capital Assistance for Intercity Passenger Rail 

17 Service’’ to the Federal Railroad Administration; for 

18 ‘‘Transit Capital Assistance’’, ‘‘Fixed Guideway In19 frastructure Investment’’, and ‘‘Capital Investment 

20 Grants’’ to the Federal Transit Administration. 

21 (3) GRANT RECIPIENT.—The term ‘‘grant re22 cipient’’ means a State or other recipient of assist23 ance provided under a covered program in this Act. 

24 Such term does not include a Federal department or 

25 agency. 


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1 SEC. 12002. FHA LOAN LIMITS FOR 2009. 

2 (a) LOAN LIMIT FLOOR BASED ON 2008 LEVELS.— 

3 For mortgages for which the mortgagee issues credit ap4 proval for the borrower during calendar year 2009, if the 

5 dollar amount limitation on the principal obligation of a 

6 mortgage determined under section 203(b)(2) of the Na7 tional Housing Act (12 U.S.C. 1709(b)(2)) for any size 

8 residence for any area is less than such dollar amount lim9 itation that was in effect for such size residence for such 

10 area for 2008 pursuant to section 202 of the Economic 

11 Stimulus Act of 2008 (Public Law 110–185; 122 Stat. 

12 620), notwithstanding any other provision of law, the max13 imum dollar amount limitation on the principal obligation 

14 of a mortgage for such size residence for such area for 

15 purposes of such section 203(b)(2) shall be considered (ex16 cept for purposes of section 255(g) of such Act (12 U.S.C. 

17 1715z–20(g))) to be such dollar amount limitation in ef18 fect for such size residence for such area for 2008. 

19 (b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 

20 Notwithstanding any other provision of law, if the Sec21 retary of Housing and Urban Development determines, for 

22 any geographic area that is smaller than an area for which 

23 dollar amount limitations on the principal obligation of a 

24 mortgage are determined under section 203(b)(2) of the 

25 National Housing Act, that a higher such maximum dollar 

26 amount limitation is warranted for any particular size or 


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1 sizes of residences in such sub-area by higher median 

2 home prices in such sub-area, the Secretary may, for mort3 gages for which the mortgagee issues credit approval for 

4 the borrower during calendar year 2009, increase the max5 imum dollar amount limitation for such size or sizes of 

6 residences for such sub-area that is otherwise in effect (in7 cluding pursuant to subsection (a) of this section), but in 

8 no case to an amount that exceeds the amount specified 

9 in section 202(a)(2) of the Economic Stimulus Act of 

10 2008. 

11 SEC. 12003. GSE CONFORMING LOAN LIMITS FOR 2009. 

12 (a) LOAN LIMIT FLOOR BASED ON 2008 LEVELS.— 

13 For mortgages originated during calendar year 2009, if 

14 the limitation on the maximum original principal obliga15 tion of a mortgage that may purchased by the Federal 

16 National Mortgage Association or the Federal Home Loan 

17 Mortgage Corporation determined under section 302(b)(2) 

18 of the Federal National Mortgage Association Charter Act 

19 (12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Fed20 eral Home Loan Mortgage Corporation Act (12 U.S.C. 

21 1754(a)(2)), respectively, for any size residence for any 

22 area is less than such maximum original principal obliga23 tion limitation that was in effect for such size residence 

24 for such area for 2008 pursuant to section 201 of the Eco25 nomic Stimulus Act of 2008 (Public Law 110–185; 122 


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1 Stat. 619), notwithstanding any other provision of law, the 

2 limitation on the maximum original principal obligation of 

3 a mortgage for such Association and Corporation for such 

4 size residence for such area shall be such maximum limita5 tion in effect for such size residence for such area for 

6 2008. 

7 (b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 

8 Notwithstanding any other provision of law, if the Direc9 tor of the Federal Housing Finance Agency determines, 

10 for any geographic area that is smaller than an area for 

11 which limitations on the maximum original principal obli12 gation of a mortgage are determined for the Federal Na13 tional Mortgage Association or the Federal Home Loan 

14 Mortgage Corporation, that a higher such maximum origi15 nal principal obligation limitation is warranted for any 

16 particular size or sizes of residences in such sub-area by 

17 higher median home prices in such sub-area, the Director 

18 may, for mortgages originated during 2009, increase the 

19 maximum original principal obligation limitation for such 

20 size or sizes of residences for such sub-area that is other21 wise in effect (including pursuant to subsection (a) of this 

22 section) for such Association and Corporation, but in no 

23 case to an amount that exceeds the amount specified in 

24 the matter following the comma in section 201(a)(1)(B) 

25 of the Economic Stimulus Act of 2008. 


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1 SEC. 12004. FHA REVERSE MORTGAGE LOAN LIMITS FOR 

2 2009. 

3 For mortgages for which the mortgagee issues credit 

4 approval for the borrower during calendar year 2009, the 

5 second sentence of section 255(g) of the National Housing 

6 Act (12 U.S.C. 171520(g)) shall be considered to require 

7 that in no case may the benefits of insurance under such 

8 section 255 exceed 150 percent of the maximum dollar 

9 amount in effect under the sixth sentence of section 

10 305(a)(2) of the Federal Home Loan Mortgage Corpora11 tion Act (12 U.S.C. 1454(a)(2)). 

12 TITLE XIII—STATE FISCAL 

13 STABILIZATION FUND 

14 DEPARTMENT OF EDUCATION 

15 STATE FISCAL STABILIZATION FUND

16 For necessary expenses for a State Fiscal Stabiliza17 tion Fund, $79,000,000,000, which shall be administered 

18 by the Department of Education, of which 

19 $39,500,000,000 shall become available on July 1, 2009 

20 and remain available through September 30, 2010, and 

21 $39,500,000,000 shall become available on July 1, 2010 

22 and remain available through September 30, 2011: Pro23 vided, That the provisions of section 1103 of this Act shall 

24 not apply to the funds reserved under section 13001(c) 

25 of this title: Provided further, That the amount made 

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1 tration and oversight shall take the place of the set-aside 

2 under section 1106 of this Act. 

3 GENERAL PROVISIONS, THIS TITLE 

4 SEC. 13001. ALLOCATIONS. 

5 (a) OUTLYING AREAS.—From each year’s appropria6 tion to carry out this title, the Secretary of Education 

7 shall first allocate one half of 1 percent to the outlying 

8 areas on the basis of their respective needs, as determined 

9 by the Secretary, for activities consistent with this title 

10 under such terms and conditions as the Secretary may de11 termine. 

12 (b) ADMINISTRATION AND OVERSIGHT.—The Sec13 retary may, in addition, reserve up to $12,500,000 each 

14 year for administration and oversight of this title, includ15 ing for program evaluation. 

16 (c) RESERVATION FOR ADDITIONAL PROGRAMS.— 

17 After reserving funds under subsections (a) and (b), the 

18 Secretary shall reserve $7,500,000,000 each year for 

19 grants under sections 13006 and 13007. 

20 (d) STATE ALLOCATIONS.—After carrying out sub21 sections (a), (b), and (c), the Secretary shall allocate the 

22 remaining funds made available to carry out this title to 

23 the States as follows: 

24 (1) 61 percent on the basis of their relative 

25 population of individuals aged 5 through 24. 


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1 (2) 39 percent on the basis of their relative 

2 total population. 

3 (e) STATE GRANTS.—From funds allocated under 

4 subsection (d), the Secretary shall make grants to the 

5 Governor of each State. 

6 (f) REALLOCATION.—The Governor shall return to 

7 the Secretary any funds received under subsection (e) that 

8 the Governor does not obligate within one year of receiving 

9 a grant, and the Secretary shall reallocate such funds to 

10 the remaining States in accordance with subsection (d). 

11 SEC. 13002. STATE USES OF FUNDS. 

12 (a) EDUCATION FUND.— 

13 (1) IN GENERAL.—For each fiscal year, the 

14 Governor shall use at least 61 percent of the State’s 

15 allocation under section 13001 for the support of el16 ementary, secondary, and postsecondary education. 

17 (2) RESTORING 2008 STATE SUPPORT FOR EDU18 CATION.— 

19 (A) IN GENERAL.—The Governor shall 

20 first use the funds described in paragraph (1)— 

21 (i) to provide the amount of funds, 

22 through the State’s principal elementary 

23 and secondary funding formula, that is 

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1 tary and secondary education to the fiscal 

2 year 2008 level; and 

3 (ii) to provide the amount of funds to 

4 public institutions of higher education in 

5 the State that is needed to restore State 

6 support for postsecondary education to the 

7 fiscal year 2008 level. 

8 (B) SHORTFALL.—If the Governor deter9 mines that the amount of funds available under 

10 paragraph (1) is insufficient to restore State 

11 support for education to the levels described in 

12 clauses (i) and (ii) of subparagraph (A), the 

13 Governor shall allocate those funds between 

14 those clauses in proportion to the relative short15 fall in State support for the education sectors 

16 described in those clauses. 

17 (3) SUBGRANTS TO IMPROVE BASIC PROGRAMS

18 OPERATED BY LOCAL EDUCATIONAL AGENCIES.— 

19 After carrying out paragraph (2), the Governor shall 

20 use any funds remaining under paragraph (1) to 

21 provide local educational agencies in the State with 

22 subgrants based on their relative shares of funding 

23 under part A of title I of the Elementary and Sec24 ondary Education Act of 1965 (20 U.S.C. 6311 et 


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1 seq.) for the most recent year for which data are 

2 available. 

3 (b) OTHER GOVERNMENT SERVICES.—For each fis4 cal year, the Governor may use up to 39 percent of the 

5 State’s allocation under section 1301 for public safety and 

6 other government services, which may include assistance 

7 for elementary and secondary education and public institu8 tions of higher education. 

9 SEC. 13003. USES OF FUNDS BY LOCAL EDUCATIONAL 

10 AGENCIES. 

11 (a) IN GENERAL.—A local educational agency that 

12 receives funds under this title may use the funds for any 

13 activity authorized by the Elementary and Secondary Edu14 cation Act of 1965 (20 U.S.C. 6301 et seq.) (‘‘ESEA’’), 

15 the Individuals with Disabilities Education Act (20 U.S.C. 

16 1400 et seq.) (‘‘IDEA’’), or the Carl D. Perkins Career 

17 and Technical Education Act of 2006 (20 U.S.C. 2301 

18 et seq.) (‘‘the Perkins Act’’). 

19 (b) PROHIBITION.—A local educational agency may 

20 not use funds received under this title for capital projects 

21 unless authorized by ESEA, IDEA, or the Perkins Act. 

22 SEC. 13004. USES OF FUNDS BY INSTITUTIONS OF HIGHER 

23 EDUCATION. 

24 (a) IN GENERAL.—A public institution of higher edu25 cation that receives funds under this title shall use the 


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1 funds for education and general expenditures, and in such 

2 a way as to mitigate the need to raise tuition and fees 

3 for in-State students. 

4 (b) PROHIBITION.—An institution of higher edu5 cation may not use funds received under this title to in6 crease its endowment. 

7 (c) ADDITIONAL PROHIBITION.—An institution of 

8 higher education may not use funds received under this 

9 title for construction, renovation, or facility repair. 

10 SEC. 13005. STATE APPLICATIONS. 

11 (a) IN GENERAL.—The Governor of a State desiring 

12 to receive an allocation under section 13001 shall submit 

13 an annual application at such time, in such manner, and 

14 containing such information as the Secretary may reason15 ably require. 

16 (b) FIRST YEAR APPLICATION.—In the first of such 

17 applications, the Governor shall— 

18 (1) include the assurances described in sub19 section (e); 

20 (2) provide baseline data that demonstrates the 

21 State’s current status in each of the areas described 

22 in such assurances; and 

23 (3) describe how the State intends to use its al24 location. 


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1 (c) SECOND YEAR APPLICATION.—In the second year 

2 application, the Governor shall— 

3 (1) include the assurances described in sub4 section (e); and 

5 (2) describe how the State intends to use its al6 location. 

7 (d) INCENTIVE GRANT APPLICATION.—The Governor 

8 of a State seeking a grant under section 13006 shall— 

9 (1) submit an application for consideration; 

10 (2) describe the status of the State’s progress 

11 in each of the areas described in subsection (e), and 

12 the strategies the State is employing to help ensure 

13 that high-need students in the State continue mak14 ing progress towards meeting the State’s student 

15 academic achievement standards; 

16 (3) describe how the State would use its grant 

17 funding, including how it will allocate the funds to 

18 give priority to high-need schools and local edu19 cational agencies; and 

20 (4) include a plan for evaluating its progress in 

21 closing achievement gaps. 

22 (e) ASSURANCES.—An application under subsection 

23 (b) or (c) shall include the following assurances: 

24 (1) MAINTENANCE OF EFFORT.— 


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1 (A) ELEMENTARY AND SECONDARY EDU2 CATION.—The State will, in each of fiscal years 

3 2009 and 2010, maintain State support for ele4 mentary and secondary education at least at 

5 the level of such support in fiscal year 2006. 

6 (B) HIGHER EDUCATION.—The State will, 

7 in each of fiscal years 2009 and 2010, maintain 

8 State support for public institutions of higher 

9 education (not including support for capital 

10 projects or for research and development) at 

11 least at the level of such support in fiscal year 

12 2006. 

13 (2) ACHIEVING EQUITY IN TEACHER DISTRIBU14 TION.—The State will take actions to comply with 

15 section 1111(b)(8)(C) of ESEA (20 U.S.C. 

16 6311(b)(8)(C)) in order to address inequities in the 

17 distribution of teachers between high-and low-pov18 erty schools, and to ensure that low-income and mi19 nority children are not taught at higher rates than 

20 other children by inexperienced, unqualified, or out21 of-field teachers. 

22 (3) IMPROVING COLLECTION AND USE OF

23 DATA.—The State will establish a longitudinal data 

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1 tion 6401(e)(2)(D) of the America COMPETES Act 

2 (20 U.S.C. 9871). 

3 (4) ASSESSMENTS.—The State— 

4 (A) will enhance the quality of academic 

5 assessments described in section 1111(b)(3) of 

6 ESEA (20 U.S.C. 6311(b)(3)) through activi7 ties such as those described in section 6112(a) 

8 of such Act (20 U.S.C. 7301a(a)); and 

9 (B) will comply with the requirements of 

10 paragraphs 3(C)(ix) and (6) of section 1111(b) 

11 of ESEA (20 U.S.C. 6311(b)) and section 

12 612(a)(16) of IDEA (20 U.S.C. 1412(a)(16)) 

13 related to the inclusion of children with disabil14 ities and limited English proficient students in 

15 State assessments, the development of valid and 

16 reliable assessments for those students, and the 

17 provision of accommodations that enable their 

18 participation in State assessments. 

19 SEC. 13006. STATE INCENTIVE GRANTS. 

20 (a) IN GENERAL.—From the total amount reserved 

21 under section 13001(c) that is not used for section 13007, 

22 the Secretary shall, in fiscal year 2010, make grants to 

23 States that have made significant progress in meeting the 

24 objectives of paragraphs (2), (3), and (4) of section 

25 13005(e). 


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1 (b) BASIS FOR GRANTS.—The Secretary shall deter2 mine which States receive grants under this section, and 

3 the amount of those grants, on the basis of information 

4 provided in State applications under section 13005 and 

5 such other criteria as the Secretary determines appro6 priate. 

7 (c) SUBGRANTS TO LOCAL EDUCATIONAL AGEN8 CIES.—Each State receiving a grant under this section 

9 shall use at least 50 percent of the grant to provide local 

10 educational agencies in the State with subgrants based on 

11 their relative shares of funding under part A of title I of 

12 ESEA (20 U.S.C. 6311 et seq.) for the most recent year. 

13 SEC. 13007. INNOVATION FUND. 

14 (a) IN GENERAL.— 

15 (1) PROGRAM ESTABLISHED.—From the total 

16 amount reserved under section 13001(c), the Sec17 retary may reserve up to $325,000,000 each year to 

18 establish an Innovation Fund, which shall consist of 

19 academic achievement awards that recognize States, 

20 local educational agencies, or schools that meet the 

21 requirements described in subsection (b). 

22 (2) BASIS FOR AWARDS.—The Secretary shall 

23 make awards to States, local educational agencies, 

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1 ing the achievement gap as described in subsection 

2 (b)(1)— 

3 (A) to allow such States, local educational 

4 agencies, and schools to expand their work and 

5 serve as models for best practices; 

6 (B) to allow such States, local educational 

7 agencies, and schools to work in partnership 

8 with the private sector and the philanthropic 

9 community; and 

10 (C) to identify and document best practices 

11 that can be shared, and taken to scale based on 

12 demonstrated success. 

13 (b) ELIGIBILITY.—To be eligible for such an award, 

14 a State, local educational agency, or school shall— 

15 (1) have significantly closed the achievement 

16 gaps between groups of students described in section 

17 1111(b)(2) of ESEA (20 U.S.C. 6311(b)(2)); 

18 (2) have exceeded the State’s annual measur19 able objectives consistent with such section 

20 1111(b)(2) for 2 or more consecutive years or have 

21 demonstrated success in significantly increasing stu22 dent academic achievement for all groups of stu23 dents described in such section through another 

24 measure, such as measures described in section 

25 1111(c)(2) of ESEA; 


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1 (3) have made significant improvement in other 

2 areas, such as graduation rates or increased recruit3 ment and placement of high-quality teachers and 

4 school leaders, as demonstrated with meaningful 

5 data; and 

6 (4) demonstrate that they have established 

7 partnerships with the private sector, which may in8 clude philanthropic organizations, and that the pri9 vate sector will provide matching funds in order to 

10 help bring results to scale. 

11 SEC. 13008. STATE REPORTS. 

12 For each year of the program under this title, a State 

13 receiving funds under this title shall submit a report to 

14 the Secretary, at such time and in such manner as the 

15 Secretary may require, that describes— 

16 (1) the uses of funds provided under this title 

17 within the State; 

18 (2) how the State distributed the funds it re19 ceived under this title; 

20 (3) the number of jobs that the Governor esti21 mates were saved or created with funds the State re22 ceived under this title; 

23 (4) tax increases that the Governor estimates 

24 were averted because of the availability of funds 

25 from this title; 


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1 (5) the State’s progress in reducing inequities 

2 in the distribution of teachers, in implementing a 

3 State student longitudinal data system, and in devel4 oping and implementing valid and reliable assess5 ments for limited English proficient students and 

6 children with disabilities; 

7 (6) the tuition and fee increases for in-State 

8 students imposed by public institutions of higher 

9 education in the State during the period of avail10 ability of funds under this title, and a description of 

11 any actions taken by the State to limit those in12 creases; and 

13 (7) the extent to which public institutions of 

14 higher education maintained, increased, or decreased 

15 enrollment of in-State students, including students 

16 eligible for Pell Grants or other need-based financial 

17 assistance. 

18 SEC. 13009. EVALUATION. 

19 The Comptroller General of the United States shall 

20 conduct evaluations of the programs under sections 13006 

21 and 13007 which shall include, but not be limited to, the 

22 criteria used for the awards made, the States selected for 

23 awards, award amounts, how each State used the award 

24 received, and the impact of this funding on the progress 

25 made toward closing achievement gaps. 


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1 SEC. 13010. SECRETARY’S REPORT TO CONGRESS. 

2 The Secretary shall submit a report to the Committee 

3 on Education and Labor of the House of Representatives, 

4 the Committee on Health, Education, Labor, and Pen5 sions of the Senate, and the Committees on Appropria6 tions of the House of Representatives and of the Senate, 

7 not less than 6 months following the submission of State 

8 reports, that evaluates the information provided in the 

9 State reports under section 13008. 

10 SEC. 13011. PROHIBITION ON PROVISION OF CERTAIN AS11 SISTANCE. 

12 No recipient of funds under this title shall use such 

13 funds to provide financial assistance to students to attend 

14 private elementary or secondary schools. 

15 SEC. 13012. DEFINITIONS. 

16 Except as otherwise provided in this title, as used in 

17 this title— 

18 (1) the term ‘‘institution of higher education’’ 

19 has the meaning given such term in section 101 of 

20 the Higher Education Act of 1965 (20 U.S.C. 

21 1001); 

22 (2) the term ‘‘Secretary’’ means the Secretary 

23 of Education; 

24 (3) the term ‘‘State’’ means each of the 50 

25 States, the District of Columbia, and the Common26 wealth of Puerto Rico; and 


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1 (4) any other term used in this title that is de2 fined in section 9101 of ESEA (20 U.S.C. 7801) 

3 shall have the meaning given the term in that sec4 tion. 

5 DIVISION B—OTHER 

6 PROVISIONS 

7 TITLE I—TAX PROVISIONS 

8 SEC. 1000. SHORT TITLE, ETC. 

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

10 ‘‘American Recovery and Reinvestment Tax Act of 2009’’. 

11 (b) REFERENCE.—Except as otherwise expressly pro12 vided, whenever in this title an amendment or repeal is 

13 expressed in terms of an amendment to, or repeal of, a 

14 section or other provision, the reference shall be consid15 ered to be made to a section or other provision of the In16 ternal Revenue Code of 1986. 

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

18 this title is as follows: 

Sec. 1000. Short title, etc. 

Subtitle A—Making Work Pay 

Sec. 1001. Making work pay credit. 

Subtitle B—Additional Tax Relief for Families With Children 

Sec. 1101. Increase in earned income tax credit. 

Sec. 1102. Increase of refundable portion of child credit. 

Subtitle C—American Opportunity Tax Credit 

Sec. 1201. American opportunity tax credit. 

Subtitle D—Housing Incentives 

Sec. 1301. Waiver of requirement to repay first-time homebuyer credit. 


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Sec. 1302. Coordination of low-income housing credit and low-income housing 

grants. 

Subtitle E—Tax Incentives for Business 

PART 1—TEMPORARY INVESTMENT INCENTIVES

Sec. 1401. Special allowance for certain property acquired during 2009. 

Sec. 1402. Temporary increase in limitations on expensing of certain depreciable business assets. 

PART 2—5-YEAR CARRYBACK OF OPERATING LOSSES

Sec. 1411. 5-year carryback of operating losses. 

Sec. 1412. Exception for TARP recipients. 

PART 3—INCENTIVES FOR NEW JOBS

Sec. 1421. Incentives to hire unemployed veterans and disconnected youth. 

PART 4—CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON

CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE

Sec. 1431. Clarification of regulations related to limitations on certain built-in 

losses following an ownership change. 

Subtitle F—Fiscal Relief for State and Local Governments 

PART 1—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. 

PART 2—TAX CREDIT BONDS FOR SCHOOLS

Sec. 1511. Qualified school construction bonds. 

Sec. 1512. Extension and expansion of qualified zone academy bonds. 

PART 3—TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS

Sec. 1521. Taxable bond option for governmental bonds. 

PART 4—RECOVERY ZONE BONDS

Sec. 1531. Recovery zone bonds. 

Sec. 1532. Tribal economic development bonds. 

PART 5—REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS

Sec. 1541. Repeal of withholding tax on government contractors. 

Subtitle G—Energy Incentives 

PART 1—RENEWABLE ENERGY INCENTIVES


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Sec. 1601. Extension of credit for electricity produced from certain renewable 

resources. 

Sec. 1602. Election of investment credit in lieu of production credit. 

Sec. 1603. Repeal of certain limitations on credit for renewable energy property. 

Sec. 1604. Coordination with renewable energy grants. 

PART 2—INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY

BONDS AND QUALIFIED ENERGY CONSERVATION BONDS

Sec. 1611. Increased limitation on issuance of new clean renewable energy 

bonds. 

Sec. 1612. Increased limitation and expansion of qualified energy conservation 

bonds. 

PART 3—ENERGY CONSERVATION INCENTIVES

Sec. 1621. Extension and modification of credit for nonbusiness energy property. 

Sec. 1622. Modification of credit for residential energy efficient property. 

Sec. 1623. Temporary increase in credit for alternative fuel vehicle refueling 

property. 

PART 4—ENERGY RESEARCH INCENTIVES

Sec. 1631. Increased research credit for energy research. 

Subtitle H—Other Provisions 

PART 1—APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS

FINANCED WITH CERTAIN TAX-FAVORED BONDS

Sec. 1701. Application of certain labor standards to projects financed with certain tax-favored bonds. 

PART 2—GRANTS TO PROVIDE FINANCING FOR LOW-INCOME HOUSING

Sec. 1711. Grants to States for low-income housing projects in lieu of low-income housing credit allocations for 2009. 

PART 3—GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX

CREDITS

Sec. 1721. Grants for specified energy property in lieu of tax credits. 

PART 4—STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF

THIS ACT

Sec. 1731. Study of economic, employment, and related effects of this Act. 


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1 Subtitle A—Making Work Pay 

2 SEC. 1001. MAKING WORK PAY CREDIT. 

3 (a) IN GENERAL.—Subpart C of part IV of sub4 chapter A of chapter 1 is amended by inserting after sec5 tion 36 the following new section: 

6 ‘‘SEC. 36A. MAKING WORK PAY CREDIT. 

7 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli8 gible individual, there shall be allowed as a credit against 

9 the tax imposed by this subtitle for the taxable year an 

10 amount equal to the lesser of— 

11 ‘‘(1) 6.2 percent of earned income of the tax12 payer, or 

13 ‘‘(2) $500 ($1,000 in the case of a joint re14 turn). 

15 ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED

16 GROSS INCOME.— 

17 ‘‘(1) IN GENERAL.—The amount allowable as a 

18 credit under subsection (a) (determined without re19 gard to this paragraph) for the taxable year shall be 

20 reduced (but not below zero) by 2 percent of so 

21 much of the taxpayer’s modified adjusted gross in22 come as exceeds $75,000 ($150,000 in the case of 

23 a joint return). 

24 ‘‘(2) MODIFIED ADJUSTED GROSS INCOME.— 

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1 fied adjusted gross income’ means the adjusted 

2 gross income of the taxpayer for the taxable year in3 creased by any amount excluded from gross income 

4 under section 911, 931, or 933. 

5 ‘‘(c) DEFINITIONS.—For purposes of this section— 

6 ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

7 individual’ means any individual other than— 

8 ‘‘(A) any nonresident alien individual, 

9 ‘‘(B) any individual with respect to whom 

10 a deduction under section 151 is allowable to 

11 another taxpayer for a taxable year beginning 

12 in the calendar year in which the individual’s 

13 taxable year begins, and 

14 ‘‘(C) an estate or trust. 

15 Such term shall not include any individual unless the 

16 requirements of section 32(c)(1)(E) are met with re17 spect to such individual. 

18 ‘‘(2) EARNED INCOME.—The term ‘earned in19 come’ has the meaning given such term by section 

20 32(c)(2), except that such term shall not include net 

21 earnings from self-employment which are not taken 

22 into account in computing taxable income. For pur23 poses of the preceding sentence, any amount ex24 cluded from gross income by reason of section 112 

25 shall be treated as earned income which is taken 


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1 into account in computing taxable income for the 

2 taxable year. 

3 ‘‘(d) TERMINATION.—This section shall not apply to 

4 taxable years beginning after December 31, 2010.’’. 

5 (b) TREATMENT OF POSSESSIONS.— 

6 (1) PAYMENTS TO POSSESSIONS.— 

7 (A) MIRROR CODE POSSESSION.—The Sec8 retary of the Treasury shall pay to each posses9 sion of the United States with a mirror code 

10 tax system amounts equal to the loss to that 

11 possession by reason of the amendments made 

12 by this section with respect to taxable years be13 ginning in 2009 and 2010. Such amounts shall 

14 be determined by the Secretary of the Treasury 

15 based on information provided by the govern16 ment of the respective possession. 

17 (B) OTHER POSSESSIONS.—The Secretary 

18 of the Treasury shall pay to each possession of 

19 the United States which does not have a mirror 

20 code tax system amounts estimated by the Sec21 retary of the Treasury as being equal to the ag22 gregate benefits that would have been provided 

23 to residents of such possession by reason of the 

24 amendments made by this section for taxable 

25 years beginning in 2009 and 2010 if a mirror 


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1 code tax system had been in effect in such pos2 session. The preceding sentence shall not apply 

3 with respect to any possession of the United 

4 States unless such possession has a plan, which 

5 has been approved by the Secretary of the 

6 Treasury, under which such possession will 

7 promptly distribute such payments to the resi8 dents of such possession. 

9 (2) COORDINATION WITH CREDIT ALLOWED

10 AGAINST UNITED STATES INCOME TAXES.—No cred11 it shall be allowed against United States income 

12 taxes for any taxable year under section 36A of the 

13 Internal Revenue Code of 1986 (as added by this 

14 section) to any person— 

15 (A) to whom a credit is allowed against 

16 taxes imposed by the possession by reason of 

17 the amendments made by this section for such 

18 taxable year, or 

19 (B) who is eligible for a payment under a 

20 plan described in paragraph (1)(B) with respect 

21 to such taxable year. 

22 (3) DEFINITIONS AND SPECIAL RULES.— 

23 (A) POSSESSION OF THE UNITED

24 STATES.—For purposes of this subsection, the 

25 term ‘‘possession of the United States’’ includes 


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1 the Commonwealth of Puerto Rico and the 

2 Commonwealth of the Northern Mariana Is3 lands. 

4 (B) MIRROR CODE TAX SYSTEM.—For pur5 poses of this subsection, the term ‘‘mirror code 

6 tax system’’ means, with respect to any posses7 sion of the United States, the income tax sys8 tem of such possession if the income tax liabil9 ity of the residents of such possession under 

10 such system is determined by reference to the 

11 income tax laws of the United States as if such 

12 possession were the United States. 

13 (C) TREATMENT OF PAYMENTS.—For pur14 poses of section 1324(b)(2) of title 31, United 

15 States Code, the payments under this sub16 section shall be treated in the same manner as 

17 a refund due from the credit allowed under sec18 tion 36A of the Internal Revenue Code of 1986 

19 (as added by this section). 

20 (c) REFUNDS DISREGARDED IN THE ADMINISTRA21 TION OF FEDERAL PROGRAMS AND FEDERALLY AS22 SISTED PROGRAMS.—Any credit or refund allowed or 

23 made to any individual by reason of section 36A of the 

24 Internal Revenue Code of 1986 (as added by this section) 

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


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

2 account as resources for the month of receipt and the fol3 lowing 2 months, for purposes of determining the eligi4 bility of such individual or any other individual for benefits 

5 or assistance, or the amount or extent of benefits or assist6 ance, under any Federal program or under any State or 

7 local program financed in whole or in part with Federal 

8 funds. 

9 (d) CONFORMING AMENDMENTS.— 

10 (1) Section 6211(b)(4)(A) is amended by insert11 ing ‘‘36A,’’ after ‘‘36,’’. 

12 (2) Section 1324(b)(2) of title 31, United 

13 States Code, is amended by inserting ‘‘36A,’’ after 

14 ‘‘36,’’. 

15 (3) The table of sections for subpart C of part 

16 IV of subchapter A of chapter 1 is amended by in17 serting after the item relating to section 36 the fol18 lowing new item: 

‘‘Sec. 36A. Making work pay credit.’’. 

19 (e) EFFECTIVE DATE.—This section shall apply to 

20 taxable years beginning after December 31, 2008. 


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1 Subtitle B—Additional Tax Relief 

2 for Families With Children 

3 SEC. 1101. INCREASE IN EARNED INCOME TAX CREDIT. 

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

5 amended by adding at the end the following new para6 graph: 

7 ‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 

8 the case of any taxable year beginning in 2009 or 

9 2010— 

10 ‘‘(A) INCREASED CREDIT PERCENTAGE

11 FOR 3 OR MORE QUALIFYING CHILDREN.—In 

12 the case of a taxpayer with 3 or more qualifying 

13 children, the credit percentage is 45 percent. 

14 ‘‘(B) REDUCTION OF MARRIAGE PEN15 ALTY.— 

16 ‘‘(i) IN GENERAL.—The dollar amount 

17 in effect under paragraph (2)(B) shall be 

18 $5,000. 

19 ‘‘(ii) INFLATION ADJUSTMENT.—In 

20 the case of any taxable year beginning in 

21 2010, the $5,000 amount in clause (i) 

22 shall be increased by an amount equal to— 

23 ‘‘(I) such dollar amount, multi24 plied by 


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1 ‘‘(II) the cost of living adjust2 ment determined under section 1(f)(3) 

3 for the calendar year in which the tax4 able year begins determined by sub5 stituting ‘calendar year 2008’ for ‘cal6 endar year 1992’ in subparagraph (B) 

7 thereof. 

8 ‘‘(iii) ROUNDING.—Subparagraph (A) 

9 of subsection (j)(2) shall apply after taking 

10 into account any increase under clause 

11 (ii).’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2008. 

15 SEC. 1102. INCREASE OF REFUNDABLE PORTION OF CHILD 

16 CREDIT. 

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

18 amended to read as follows: 

19 ‘‘(4) SPECIAL RULE FOR 2009 AND 2010.—Not20 withstanding paragraph (3), in the case of any tax21 able year beginning in 2009 or 2010, the dollar 

22 amount in effect for such taxable year under para23 graph (1)(B)(i) shall be zero.’’. 


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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 Subtitle C—American Opportunity 

5 Tax Credit 

6 SEC. 1201. AMERICAN OPPORTUNITY TAX CREDIT. 

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

8 scholarship credit) is amended by redesignating subsection 

9 (i) as subsection (j) and by inserting after subsection (h) 

10 the following new subsection: 

11 ‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.—In the 

12 case of any taxable year beginning in 2009 or 2010— 

13 ‘‘(1) INCREASE IN CREDIT.—The Hope Scholar14 ship Credit shall be an amount equal to the sum 

15 of— 

16 ‘‘(A) 100 percent of so much of the quali17 fied tuition and related expenses paid by the 

18 taxpayer during the taxable year (for education 

19 furnished to the eligible student during any 

20 academic period beginning in such taxable year) 

21 as does not exceed $2,000, plus 

22 ‘‘(B) 25 percent of such expenses so paid 

23 as exceeds $2,000 but does not exceed $4,000. 

24 ‘‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF

25 POST-SECONDARY EDUCATION.—Subparagraphs (A) 


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1 and (C) of subsection (b)(2) shall be applied by sub2 stituting ‘4’ for ‘2’. 

3 ‘‘(3) QUALIFIED TUITION AND RELATED EX4 PENSES TO INCLUDE REQUIRED COURSE MATE5 RIALS.—Subsection (f)(1)(A) shall be applied by 

6 substituting ‘tuition, fees, and course materials’ for 

7 ‘tuition and fees’. 

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

9 SCHOLARSHIP CREDIT.—In lieu of applying sub10 section (d) with respect to the Hope Scholarship 

11 Credit, such credit (determined without regard to 

12 this paragraph) shall be reduced (but not below 

13 zero) by the amount which bears the same ratio to 

14 such credit (as so determined) as— 

15 ‘‘(A) the excess of— 

16 ‘‘(i) the taxpayer’s modified adjusted 

17 gross income (as defined in subsection 

18 (d)(3)) for such taxable year, over 

19 ‘‘(ii) $80,000 ($160,000 in the case of 

20 a joint return), bears to 

21 ‘‘(B) $10,000 ($20,000 in the case of a 

22 joint return). 

23 ‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE

24 MINIMUM TAX.—In the case of a taxable year to 

25 which section 26(a)(2) does not apply, so much of 


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1 the credit allowed under subsection (a) as is attrib2 utable to the Hope Scholarship Credit shall not ex3 ceed the excess of— 

4 ‘‘(A) the sum of the regular tax liability 

5 (as defined in section 26(b)) plus the tax im6 posed by section 55, over 

7 ‘‘(B) the sum of the credits allowable 

8 under this subpart (other than this subsection 

9 and sections 23, 25D, and 30D) and section 27 

10 for the taxable year. 

11 Any reference in this section or section 24, 25, 26, 

12 25B, 904, or 1400C to a credit allowable under this 

13 subsection shall be treated as a reference to so much 

14 of the credit allowable under subsection (a) as is at15 tributable to the Hope Scholarship Credit. 

16 ‘‘(6) PORTION OF CREDIT MADE REFUND17 ABLE.—40 percent of so much of the credit allowed 

18 under subsection (a) as is attributable to the Hope 

19 Scholarship Credit (determined after application of 

20 paragraph (4) and without regard to this paragraph 

21 and section 26(a)(2) or paragraph (5), as the case 

22 may be) shall be treated as a credit allowable under 

23 subpart C (and not allowed under subsection (a)). 

24 The preceding sentence shall not apply to any tax25 payer for any taxable year if such taxpayer is a child 


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1 to whom subsection (g) of section 1 applies for such 

2 taxable year. 

3 ‘‘(7) COORDINATION WITH MIDWESTERN DIS4 ASTER AREA BENEFITS.—In the case of a taxpayer 

5 with respect to whom section 702(a)(1)(B) of the 

6 Heartland Disaster Tax Relief Act of 2008 applies 

7 for any taxable year, such taxpayer may elect to 

8 waive the application of this subsection to such tax9 payer for such taxable year.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 24(b)(3)(B) is amended by inserting 

12 ‘‘25A(i),’’ after ‘‘23,’’. 

13 (2) Section 25(e)(1)(C)(ii) is amended by in14 serting ‘‘25A(i),’’ after ‘‘24,’’. 

15 (3) Section 26(a)(1) is amended by inserting 

16 ‘‘25A(i),’’ after ‘‘24,’’. 

17 (4) Section 25B(g)(2) is amended by inserting 

18 ‘‘25A(i),’’ after ‘‘23,’’. 

19 (5) Section 904(i) is amended by inserting 

20 ‘‘25A(i),’’ after ‘‘24,’’. 

21 (6) Section 1400C(d)(2) is amended by insert22 ing ‘‘25A(i),’’ after ‘‘24,’’. 

23 (7) Section 1324(b)(2) of title 31, United 

24 States Code, is amended by inserting ‘‘25A,’’ before 

25 ‘‘35’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2008. 

4 (d) APPLICATION OF EGTRRA SUNSET.—The 

5 amendment made by subsection (b)(1) shall be subject to 

6 title IX of the Economic Growth and Tax Relief Reconcili7 ation Act of 2001 in the same manner as the provision 

8 of such Act to which such amendment relates. 

9 (e) TREASURY STUDIES REGARDING EDUCATION IN10 CENTIVES.— 

11 (1) STUDY REGARDING COORDINATION WITH

12 NON-TAX EDUCATIONAL INCENTIVES.—The Sec13 retary of the Treasury, or the Secretary’s delegate, 

14 shall study how to coordinate the credit allowed 

15 under section 25A of the Internal Revenue Code of 

16 1986 with the Federal Pell Grant program under 

17 section 401 of the Higher Education Act of 1965. 

18 (2) STUDY REGARDING IMPOSITION OF COMMU19 NITY SERVICE REQUIREMENTS.—The Secretary of 

20 the Treasury, or the Secretary’s delegate, shall study 

21 the feasibility of requiring students to perform com22 munity service as a condition of taking their tuition 

23 and related expenses into account under section 25A 

24 of the Internal Revenue Code of 1986. 


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1 (3) REPORT.—Not later than 1 year after the 

2 date of the enactment of this Act, the Secretary of 

3 the Treasury, or the Secretary’s delegate, shall re4 port to Congress on the results of the studies con5 ducted under this paragraph. 

6 Subtitle D—Housing Incentives 

7 SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST8 TIME HOMEBUYER CREDIT. 

9 (a) IN GENERAL.—Paragraph (4) of section 36(f) is 

10 amended by adding at the end the following new subpara11 graph: 

12 ‘‘(D) WAIVER OF RECAPTURE FOR PUR13 CHASES IN 2009.—In the case of any credit al14 lowed with respect to the purchase of a prin15 cipal residence after December 31, 2008, and 

16 before July 1, 2009— 

17 ‘‘(i) paragraph (1) shall not apply, 

18 and 

19 ‘‘(ii) paragraph (2) shall apply only if 

20 the disposition or cessation described in 

21 paragraph (2) with respect to such resi22 dence occurs during the 36-month period 

23 beginning on the date of the purchase of 

24 such residence by the taxpayer.’’. 


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1 (b) CONFORMING AMENDMENT.—Subsection (g) of 

2 section 36 is amended by striking ‘‘subsection (c)’’ and 

3 inserting ‘‘subsections (c) and (f)(4)(D)’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to residences purchased after De6 cember 31, 2008. 

7 SEC. 1302. COORDINATION OF LOW-INCOME HOUSING 

8 CREDIT AND LOW-INCOME HOUSING GRANTS. 

9 Subsection (i) of section 42 of the Internal Revenue 

10 Code of 1986 is amended by adding at the end the fol11 lowing new paragraph: 

12 ‘‘(9) COORDINATION WITH LOW-INCOME HOUS13 ING GRANTS.— 

14 ‘‘(A) REDUCTION IN STATE HOUSING

15 CREDIT CEILING FOR LOW-INCOME HOUSING

16 GRANTS RECEIVED IN 2009.—For purposes of 

17 this section, the amounts described in clauses 

18 (i) through (iv) of subsection (h)(3)(C) with re19 spect to any State for 2009 shall each be re20 duced by so much of such amount as is taken 

21 into account in determining the amount of any 

22 grant to such State under section 1711 of the 

23 American Recovery and Reinvestment Tax Act 

24 of 2009. 


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1 ‘‘(B) SPECIAL RULE FOR BASIS.—Basis of 

2 a qualified low-income building shall not be re3 duced by the amount of any grant described in 

4 subparagraph (A).’’. 

5 Subtitle E—Tax Incentives for 

6 Business 

7 PART 1—TEMPORARY INVESTMENT INCENTIVES 

8 SEC. 1401. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY 

9 ACQUIRED DURING 2009. 

10 (a) IN GENERAL.—Paragraph (2) of section 168(k) 

11 is amended— 

12 (1) by striking ‘‘January 1, 2010’’ and insert13 ing ‘‘January 1, 2011’’, and 

14 (2) by striking ‘‘January 1, 2009’’ each place 

15 it appears and inserting ‘‘January 1, 2010’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) The heading for subsection (k) of section 

18 168 is amended by striking ‘‘JANUARY 1, 2009’’ and 

19 inserting ‘‘JANUARY 1, 2010’’. 

20 (2) The heading for clause (ii) of section 

21 168(k)(2)(B) is amended by striking ‘‘PRE-JANUARY

22 1, 2009’’ and inserting ‘‘PRE-JANUARY 1, 2010’’. 

23 (3) Subparagraph (D) of section 168(k)(4) is 

24 amended— 


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1 (A) by striking ‘‘and’’ at the end of clause 

2 (i), 

3 (B) by redesignating clause (ii) as clause 

4 (v), and 

5 (C) by inserting after clause (i) the fol6 lowing new clauses: 

7 ‘‘(ii) ‘April 1, 2008’ shall be sub8 stituted for ‘January 1, 2008’ in subpara9 graph (A)(iii)(I) thereof, 

10 ‘‘(iii) ‘January 1, 2009’ shall be sub11 stituted for ‘January 1, 2010’ each place it 

12 appears, 

13 ‘‘(iv) ‘January 1, 2010’ shall be sub14 stituted for ‘January 1, 2011’ in subpara15 graph (A)(iv) thereof, and’’. 

16 (4) Subparagraph (B) of section 168(l)(5) is 

17 amended by striking ‘‘January 1, 2009’’ and insert18 ing ‘‘January 1, 2010’’. 

19 (5) Subparagraph (B) of section 1400N(d)(3) 

20 is amended by striking ‘‘January 1, 2009’’ and in21 serting ‘‘January 1, 2010’’. 

22 (c) EFFECTIVE DATES.— 

23 (1) IN GENERAL.—Except as provided in para24 graph (2), the amendments made by this section 

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1 cember 31, 2008, in taxable years ending after such 

2 date. 

3 (2) TECHNICAL AMENDMENT.—Section 

4 168(k)(4)(D)(ii) of the Internal Revenue Code of 

5 1986, as added by subsection (b)(3)(C), shall apply 

6 to taxable years ending after March 31, 2008. 

7 SEC. 1402. TEMPORARY INCREASE IN LIMITATIONS ON EX8 PENSING OF CERTAIN DEPRECIABLE BUSI9 NESS ASSETS. 

10 (a) IN GENERAL.—Paragraph (7) of section 179(b) 

11 is amended— 

12 (1) by striking ‘‘2008’’ and inserting ‘‘2008, or 

13 2009’’, and 

14 (2) by striking ‘‘2008’’ in the heading thereof 

15 and inserting ‘‘2008, AND 2009’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2008. 

19 PART 2—5-YEAR CARRYBACK OF OPERATING 

20 LOSSES 

21 SEC. 1411. 5-YEAR CARRYBACK OF OPERATING LOSSES. 

22 (a) IN GENERAL.—Subparagraph (H) of section 

23 172(b)(1) is amended to read as follows: 

24 ‘‘(H) CARRYBACK FOR 2008 AND 2009 NET

25 OPERATING LOSSES.— 


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1 ‘‘(i) IN GENERAL.—In the case of an 

2 applicable 2008 or 2009 net operating loss 

3 with respect to which the taxpayer has 

4 elected the application of this subpara5 graph— 

6 ‘‘(I) such net operating loss shall 

7 be reduced by 10 percent of such loss 

8 (determined without regard to this 

9 subparagraph), 

10 ‘‘(II) subparagraph (A)(i) shall 

11 be applied by substituting any whole 

12 number elected by the taxpayer which 

13 is more than 2 and less than 6 for ‘2’, 

14 ‘‘(III) subparagraph (E)(ii) shall 

15 be applied by substituting the whole 

16 number which is one less than the 

17 whole number substituted under sub18 clause (II) for ‘2’, and 

19 ‘‘(IV) subparagraph (F) shall not 

20 apply. 

21 ‘‘(ii) APPLICABLE 2008 OR 2009 NET

22 OPERATING LOSS.—For purposes of this 

23 subparagraph, the term ‘applicable 2008 

24 or 2009 net operating loss’ means— 


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1 ‘‘(I) the taxpayer’s net operating 

2 loss for any taxable year ending in 

3 2008 or 2009, or 

4 ‘‘(II) if the taxpayer elects to 

5 have this subclause apply in lieu of 

6 subclause (I), the taxpayer’s net oper7 ating loss for any taxable year begin8 ning in 2008 or 2009. 

9 ‘‘(iii) ELECTION.—Any election under 

10 this subparagraph shall be made in such 

11 manner as may be prescribed by the Sec12 retary, and shall be made by the due date 

13 (including extension of time) for filing the 

14 taxpayer’s return for the taxable year of 

15 the net operating loss. Any such election, 

16 once made, shall be irrevocable. 

17 ‘‘(iv) COORDINATION WITH ALTER18 NATIVE TAX NET OPERATING LOSS DEDUC19 TION.—In the case of a taxpayer who 

20 elects to have clause (ii)(II) apply, section 

21 56(d)(1)(A)(ii) shall be applied by sub22 stituting ‘ending during 2001 or 2002 or 

23 beginning during 2008 or 2009’ for ‘end24 ing during 2001, 2002, 2008, or 2009’.’’. 


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1 (b) ALTERNATIVE TAX NET OPERATING LOSS DE2 DUCTION.—Subclause (I) of section 56(d)(1)(A)(ii) is 

3 amended to read as follows: 

4 ‘‘(I) the amount of such deduc5 tion attributable to the sum of 

6 carrybacks of net operating losses 

7 from taxable years ending during 

8 2001, 2002, 2008, or 2009 and 

9 carryovers of net operating losses to 

10 such taxable years, or’’. 

11 (c) LOSS FROM OPERATIONS OF LIFE INSURANCE

12 COMPANIES.—Subsection (b) of section 810 is amended 

13 by adding at the end the following new paragraph: 

14 ‘‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES.— 

15 ‘‘(A) IN GENERAL.—In the case of an ap16 plicable 2008 or 2009 loss from operations with 

17 respect to which the taxpayer has elected the 

18 application of this paragraph— 

19 ‘‘(i) such loss from operations shall be 

20 reduced by 10 percent of such loss (deter21 mined without regard to this paragraph), 

22 and 

23 ‘‘(ii) paragraph (1)(A) shall be ap24 plied, at the election of the taxpayer, by 

25 substituting ‘5’ or ‘4’ for ‘3’. 


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1 ‘‘(B) APPLICABLE 2008 OR 2009 LOSS FROM

2 OPERATIONS.—For purposes of this paragraph, 

3 the term ‘applicable 2008 or 2009 loss from op4 erations’ means— 

5 ‘‘(i) the taxpayer’s loss from oper6 ations for any taxable year ending in 2008 

7 or 2009, or 

8 ‘‘(ii) if the taxpayer elects to have this 

9 clause apply in lieu of clause (i), the tax10 payer’s loss from operations for any tax11 able year beginning in 2008 or 2009. 

12 ‘‘(C) ELECTION.—Any election under this 

13 paragraph shall be made in such manner as 

14 may be prescribed by the Secretary, and shall 

15 be made by the due date (including extension of 

16 time) for filing the taxpayer’s return for the 

17 taxable year of the loss from operations. Any 

18 such election, once made, shall be irrevocable. 

19 ‘‘(D) COORDINATION WITH ALTERNATIVE

20 TAX NET OPERATING LOSS DEDUCTION.—In the 

21 case of a taxpayer who elects to have subpara22 graph (B)(ii) apply, section 56(d)(1)(A)(ii) shall 

23 be applied by substituting ‘ending during 2001 

24 or 2002 or beginning during 2008 or 2009’ for 

25 ‘ending during 2001, 2002, 2008, or 2009’.’’. 


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1 (d) CONFORMING AMENDMENT.—Section 172 is 

2 amended by striking subsection (k). 

3 (e) EFFECTIVE DATE.— 

4 (1) IN GENERAL.—Except as otherwise pro5 vided in this subsection, the amendments made by 

6 this section shall apply to net operating losses aris7 ing in taxable years ending after December 31, 

8 2007. 

9 (2) ALTERNATIVE TAX NET OPERATING LOSS

10 DEDUCTION.—The amendment made by subsection 

11 (b) shall apply to taxable years ending after 1997. 

12 (3) LOSS FROM OPERATIONS OF LIFE INSUR13 ANCE COMPANIES.—The amendment made by sub14 section (d) shall apply to losses from operations aris15 ing in taxable years ending after December 31, 

16 2007. 

17 (4) TRANSITIONAL RULE.—In the case of a net 

18 operating loss (or, in the case of a life insurance 

19 company, a loss from operations) for a taxable year 

20 ending before the date of the enactment of this 

21 Act— 

22 (A) any election made under section 

23 172(b)(3) or 810(b)(3) of the Internal Revenue 

24 Code of 1986 with respect to such loss may 


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1 (notwithstanding such section) be revoked be2 fore the applicable date, 

3 (B) any election made under section 

4 172(b)(1)(H) or 810(b)(4) of such Code with 

5 respect to such loss shall (notwithstanding such 

6 section) be treated as timely made if made be7 fore the applicable date, and 

8 (C) any application under section 6411(a) 

9 of such Code with respect to such loss shall be 

10 treated as timely filed if filed before the appli11 cable date. 

12 For purposes of this paragraph, the term ‘‘applica13 ble date’’ means the date which is 60 days after the 

14 date of the enactment of this Act. 

15 SEC. 1412. EXCEPTION FOR TARP RECIPIENTS. 

16 The amendments made by this part shall not apply 

17 to— 

18 (1) any taxpayer if— 

19 (A) the Federal Government acquires, at 

20 any time, an equity interest in the taxpayer 

21 pursuant to the Emergency Economic Stabiliza22 tion Act of 2008, or 

23 (B) the Federal Government acquires, at 

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1 quire any equity interest with respect to the 

2 taxpayer pursuant to such Act, 

3 (2) the Federal National Mortgage Association 

4 and the Federal Home Loan Mortgage Corporation, 

5 and 

6 (3) any taxpayer which at any time in 2008 or 

7 2009 is a member of the same affiliated group (as 

8 defined in section 1504 of the Internal Revenue 

9 Code of 1986, determined without regard to sub10 section (b) thereof) as a taxpayer described in para11 graph (1) or (2). 

12 PART 3—INCENTIVES FOR NEW JOBS 

13 SEC. 1421. INCENTIVES TO HIRE UNEMPLOYED VETERANS 

14 AND DISCONNECTED YOUTH. 

15 (a) IN GENERAL.—Subsection (d) of section 51 is 

16 amended by adding at the end the following new para17 graph: 

18 ‘‘(14) CREDIT ALLOWED FOR UNEMPLOYED

19 VETERANS AND DISCONNECTED YOUTH HIRED IN

20 2009 OR 2010.— 

21 ‘‘(A) IN GENERAL.—Any unemployed vet22 eran or disconnected youth who begins work for 

23 the employer during 2009 or 2010 shall be 

24 treated as a member of a targeted group for 

25 purposes of this subpart. 


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1 ‘‘(B) DEFINITIONS.—For purposes of this 

2 paragraph— 

3 ‘‘(i) UNEMPLOYED VETERAN.—The 

4 term ‘unemployed veteran’ means any vet5 eran (as defined in paragraph (3)(B), de6 termined without regard to clause (ii) 

7 thereof) who is certified by the designated 

8 local agency as— 

9 ‘‘(I) having been discharged or 

10 released from active duty in the 

11 Armed Forces during 2008, 2009, or 

12 2010, and 

13 ‘‘(II) being in receipt of unem14 ployment compensation under State or 

15 Federal law for not less than 4 weeks 

16 during the 1-year period ending on 

17 the hiring date. 

18 ‘‘(ii) DISCONNECTED YOUTH.—The 

19 term ‘disconnected youth’ means any indi20 vidual who is certified by the designated 

21 local agency— 

22 ‘‘(I) as having attained age 16 

23 but not age 25 on the hiring date, 

24 ‘‘(II) as not regularly attending 

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1 ondary school during the 6-month pe2 riod preceding the hiring date, 

3 ‘‘(III) as not regularly employed 

4 during such 6-month period, and 

5 ‘‘(IV) as not readily employable 

6 by reason of lacking a sufficient num7 ber of basic skills.’’. 

8 (b) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to individuals who begin work for 

10 the employer after December 31, 2008. 

11 PART 4—CLARIFICATION OF REGULATIONS RE12 LATED TO LIMITATIONS ON CERTAIN BUILT13 IN LOSSES FOLLOWING AN OWNERSHIP 

14 CHANGE 

15 SEC. 1431. CLARIFICATION OF REGULATIONS RELATED TO 

16 LIMITATIONS ON CERTAIN BUILT-IN LOSSES 

17 FOLLOWING AN OWNERSHIP CHANGE. 

18 (a) FINDINGS.—Congress finds as follows: 

19 (1) The delegation of authority to the Secretary 

20 of the Treasury under section 382(m) of the Inter21 nal Revenue Code of 1986 does not authorize the 

22 Secretary to provide exemptions or special rules that 

23 are restricted to particular industries or classes of 

24 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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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. 


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1 Subtitle F—Fiscal Relief for State 

2 and Local Governments 

3 PART 1—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 issued by the qualified 


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1 borrower with respect to which such 

2 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 one or more ultimate borrowers 

10 each 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 amendments 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 AFTER 2008.—Subparagraph (B) of section 

22 56(g)(4) is amended by adding at the end the following 

23 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 PART 2—TAX CREDIT BONDS FOR SCHOOLS 

13 SEC. 1511. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

14 (a) IN GENERAL.—Subpart I of part IV of sub15 chapter A of chapter 1 is amended by adding at the end 

16 the following new section: 

17 ‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

18 ‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.— 

19 For purposes of this subchapter, the term ‘qualified school 

20 construction bond’ means any bond issued as part of an 

21 issue if— 

22 ‘‘(1) 100 percent of the available project pro23 ceeds of such issue are to be used for the construc24 tion, rehabilitation, or repair of a public school facil25 ity or for the acquisition of land on which such a faVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00288 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 cility is to be constructed with part of the proceeds 

2 of such issue, 

3 ‘‘(2) the bond is issued by a State or local gov4 ernment within the jurisdiction of which such school 

5 is located, and 

6 ‘‘(3) the issuer designates such bond for pur7 poses of this section. 

8 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES9 IGNATED.—The maximum aggregate face amount of 

10 bonds issued during any calendar year which may be des11 ignated under subsection (a) by any issuer shall not exceed 

12 the sum of— 

13 ‘‘(1) the limitation amount allocated under sub14 section (d) for such calendar year to such issuer, 

15 and 

16 ‘‘(2) if such issuer is a large local educational 

17 agency (as defined in subsection (e)(4)) or is issuing 

18 on behalf of such an agency, the limitation amount 

19 allocated under subsection (e) for such calendar year 

20 to such agency. 

21 ‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS

22 DESIGNATED.—There is a national qualified school con23 struction bond limitation for each calendar year. Such lim24 itation is— 

25 ‘‘(1) $11,000,000,000 for 2009, 


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1 ‘‘(2) $11,000,000,000 for 2010, and 

2 ‘‘(3) except as provided in subsection (f), zero 

3 after 2010. 

4 ‘‘(d) 60 PERCENT OF LIMITATION ALLOCATED

5 AMONG STATES.— 

6 ‘‘(1) IN GENERAL.—60 percent of the limitation 

7 applicable under subsection (c) for any calendar year 

8 shall be allocated by the Secretary among the States 

9 in proportion to the respective numbers of children 

10 in each State who have attained age 5 but not age 

11 18 for the most recent fiscal year ending before such 

12 calendar year. The limitation amount allocated to a 

13 State under the preceding sentence shall be allocated 

14 by the State to issuers within such State. 

15 ‘‘(2) MINIMUM ALLOCATIONS TO STATES.— 

16 ‘‘(A) IN GENERAL.—The Secretary shall 

17 adjust the allocations under this subsection for 

18 any calendar year for each State to the extent 

19 necessary to ensure that the sum of— 

20 ‘‘(i) the amount allocated to such 

21 State under this subsection for such year, 

22 and 

23 ‘‘(ii) the aggregate amounts allocated 

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1 cational agencies in such State for such 

2 year, 

3 is not less than an amount equal to such 

4 State’s adjusted minimum percentage of the 

5 amount to be allocated under paragraph (1) for 

6 the calendar year. 

7 ‘‘(B) ADJUSTED MINIMUM PERCENTAGE.— 

8 A State’s adjusted minimum percentage for any 

9 calendar year is the product of— 

10 ‘‘(i) the minimum percentage de11 scribed in section 1124(d) of the Elemen12 tary and Secondary Education Act of 1965 

13 (20 U.S.C. 6334(d)) for such State for the 

14 most recent fiscal year ending before such 

15 calendar year, multiplied by 

16 ‘‘(ii) 1.68. 

17 ‘‘(3) ALLOCATIONS TO CERTAIN POSSES18 SIONS.—The amount to be allocated under para19 graph (1) to any possession of the United States 

20 other than Puerto Rico shall be the amount which 

21 would have been allocated if all allocations under 

22 paragraph (1) were made on the basis of respective 

23 populations of individuals below the poverty line (as 

24 defined by the Office of Management and Budget). 

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1 cated under paragraph (1) shall be reduced by the 

2 aggregate amount allocated under this paragraph to 

3 possessions of the United States. 

4 ‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In 

5 addition to the amounts otherwise allocated under 

6 this subsection, $200,000,000 for calendar year 

7 2009, and $200,000,000 for calendar year 2010, 

8 shall be allocated by the Secretary of the Interior for 

9 purposes of the construction, rehabilitation, and re10 pair of schools funded by the Bureau of Indian Af11 fairs. In the case of amounts allocated under the 

12 preceding sentence, Indian tribal governments (as 

13 defined in section 7701(a)(40)) shall be treated as 

14 qualified issuers for purposes of this subchapter. 

15 ‘‘(e) 40 PERCENT OF LIMITATION ALLOCATED

16 AMONG LARGEST SCHOOL DISTRICTS.— 

17 ‘‘(1) IN GENERAL.—40 percent of the limitation 

18 applicable under subsection (c) for any calendar year 

19 shall be allocated under paragraph (2) by the Sec20 retary among local educational agencies which are 

21 large local educational agencies for such year. 

22 ‘‘(2) ALLOCATION FORMULA.—The amount to 

23 be allocated under paragraph (1) for any calendar 

24 year shall be allocated among large local educational 

25 agencies in proportion to the respective amounts 


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1 each such agency received for Basic Grants under 

2 subpart 2 of part A of title I of the Elementary and 

3 Secondary Education Act of 1965 (20 U.S.C. 6331 

4 et seq.) for the most recent fiscal year ending before 

5 such calendar year. 

6 ‘‘(3) ALLOCATION OF UNUSED LIMITATION TO

7 STATE.—The amount allocated under this subsection 

8 to a large local educational agency for any calendar 

9 year may be reallocated by such agency to the State 

10 in which such agency is located for such calendar 

11 year. Any amount reallocated to a State under the 

12 preceding sentence may be allocated as provided in 

13 subsection (d)(1). 

14 ‘‘(4) LARGE LOCAL EDUCATIONAL AGENCY.— 

15 For purposes of this section, the term ‘large local 

16 educational agency’ means, with respect to a cal17 endar year, any local educational agency if such 

18 agency is— 

19 ‘‘(A) among the 100 local educational 

20 agencies with the largest numbers of children 

21 aged 5 through 17 from families living below 

22 the poverty level, as determined by the Sec23 retary using the most recent data available 

24 from the Department of Commerce that are 

25 satisfactory to the Secretary, or 


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1 ‘‘(B) 1 of not more than 25 local edu2 cational agencies (other than those described in 

3 subparagraph (A)) that the Secretary of Edu4 cation determines (based on the most recent 

5 data available satisfactory to the Secretary) are 

6 in particular need of assistance, based on a low 

7 level of resources for school construction, a high 

8 level of enrollment growth, or such other factors 

9 as the Secretary deems appropriate. 

10 ‘‘(f) CARRYOVER OF UNUSED LIMITATION.—If for 

11 any calendar year— 

12 ‘‘(1) the amount allocated under subsection (d) 

13 to any State, exceeds 

14 ‘‘(2) the amount of bonds issued during such 

15 year which are designated under subsection (a) pur16 suant to such allocation, 

17 the limitation amount under such subsection for such 

18 State for the following calendar year shall be increased 

19 by the amount of such excess. A similar rule shall apply 

20 to the amounts allocated under subsection (d)(4) or (e).’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Paragraph (1) of section 54A(d) is amended 

23 by striking ‘‘or’’ at the end of subparagraph (C), by 

24 inserting ‘‘or’’ at the end of subparagraph (D), and 


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1 by inserting after subparagraph (D) the following 

2 new subparagraph: 

3 ‘‘(E) a qualified school construction 

4 bond,’’. 

5 (2) Subparagraph (C) of section 54A(d)(2) is 

6 amended by striking ‘‘and’’ at the end of clause (iii), 

7 by striking the period at the end of clause (iv) and 

8 inserting ‘‘, and’’, and by adding at the end the fol9 lowing new clause: 

10 ‘‘(v) in the case of a qualified school 

11 construction bond, a purpose specified in 

12 section 54F(a)(1).’’. 

13 (3) The table of sections for subpart I of part 

14 IV of subchapter A of chapter 1 is amended by add15 ing at the end the following new item: 

‘‘Sec. 54F. Qualified school construction bonds.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to obligations issued after Decem18 ber 31, 2008. 

19 SEC. 1512. EXTENSION AND EXPANSION OF QUALIFIED 

20 ZONE ACADEMY BONDS. 

21 (a) IN GENERAL.—Section 54E(c)(1) is amended by 

22 striking ‘‘and 2009’’ and inserting ‘‘and $1,400,000,000 

23 for 2009 and 2010’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to obligations issued after Decem3 ber 31, 2008. 

4 PART 3—TAXABLE BOND OPTION FOR 

5 GOVERNMENTAL BONDS 

6 SEC. 1521. TAXABLE BOND OPTION FOR GOVERNMENTAL 

7 BONDS. 

8 (a) IN GENERAL.—Part IV of subchapter A of chap9 ter 1 is amended by adding at the end the following new 

10 subpart: 

11 ‘‘Subpart J—Taxable Bond Option for Governmental 

12 Bonds 

‘‘Sec. 54AA. Taxable bond option for governmental bonds. 

13 ‘‘SEC. 54AA. TAXABLE BOND OPTION FOR GOVERNMENTAL 

14 BONDS. 

15 ‘‘(a) IN GENERAL.—If a taxpayer holds a taxable 

16 governmental bond on one or more interest payment dates 

17 of the bond during any taxable year, there shall be allowed 

18 as a credit against the tax imposed by this chapter for 

19 the taxable year an amount equal to the sum of the credits 

20 determined under subsection (b) with respect to such 

21 dates. 

22 ‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 

23 determined under this subsection with respect to any in24 terest payment date for a taxable governmental bond is 


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1 35 percent of the amount of interest payable by the issuer 

2 with respect to such date. 

3 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 

4 ‘‘(1) IN GENERAL.—The credit allowed under 

5 subsection (a) for any taxable year shall not exceed 

6 the excess of— 

7 ‘‘(A) the sum of the regular tax liability 

8 (as defined in section 26(b)) plus the tax im9 posed by section 55, over 

10 ‘‘(B) the sum of the credits allowable 

11 under this part (other than subpart C and this 

12 subpart). 

13 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

14 credit allowable under subsection (a) exceeds the 

15 limitation imposed by paragraph (1) for such taxable 

16 year, such excess shall be carried to the succeeding 

17 taxable year and added to the credit allowable under 

18 subsection (a) for such taxable year (determined be19 fore the application of paragraph (1) for such suc20 ceeding taxable year). 

21 ‘‘(d) TAXABLE GOVERNMENTAL BOND.— 

22 ‘‘(1) IN GENERAL.—For purposes of this sec23 tion, the term ‘taxable governmental bond’ means 

24 any obligation (other than a private activity bond) 

25 if— 


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1 ‘‘(A) the interest on such obligation would 

2 (but for this section) be excludable from gross 

3 income under section 103, and 

4 ‘‘(B) the issuer makes an irrevocable elec5 tion to have this section apply. 

6 ‘‘(2) APPLICABLE RULES.—For purposes of ap7 plying paragraph (1)— 

8 ‘‘(A) a taxable governmental bond shall not 

9 be treated as federally guaranteed by reason of 

10 the credit allowed under subsection (a) or sec11 tion 6432, 

12 ‘‘(B) the yield on a taxable governmental 

13 bond shall be determined without regard to the 

14 credit allowed under subsection (a), and 

15 ‘‘(C) a bond shall not be treated as a tax16 able governmental bond if the issue price has 

17 more than a de minimis amount (determined 

18 under rules similar to the rules of section 

19 1273(a)(3)) of premium over the stated prin20 cipal amount of the bond. 

21 ‘‘(e) INTEREST PAYMENT DATE.—For purposes of 

22 this section, the term ‘interest payment date’ means any 

23 date on which the holder of record of the taxable govern24 mental bond is entitled to a payment of interest under 

25 such bond. 


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1 ‘‘(f) SPECIAL RULES.— 

2 ‘‘(1) INTEREST ON TAXABLE GOVERNMENTAL

3 BONDS INCLUDIBLE IN GROSS INCOME FOR FED4 ERAL INCOME TAX PURPOSES.—For purposes of this 

5 title, interest on any taxable governmental bond 

6 shall be includible in gross income. 

7 ‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 

8 similar to the rules of subsections (f), (g), (h), and 

9 (i) of section 54A shall apply for purposes of the 

10 credit allowed under subsection (a). 

11 ‘‘(g) SPECIAL RULE FOR QUALIFIED BONDS ISSUED

12 BEFORE 2011.—In the case of a qualified bond issued be13 fore January 1, 2011— 

14 ‘‘(1) ISSUER ALLOWED REFUNDABLE CRED15 IT.—In lieu of any credit allowed under this section 

16 with respect to such bond, the issuer of such bond 

17 shall be allowed a credit as provided in section 6432. 

18 ‘‘(2) QUALIFIED BOND.—For purposes of this 

19 subsection, the term ‘qualified bond’ means any tax20 able governmental bond issued as part of an issue 

21 if— 

22 ‘‘(A) 100 percent of the available project 

23 proceeds (as defined in section 54A) of such 

24 issue are to be used for capital expenditures, 

25 and 


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1 ‘‘(B) the issuer makes an irrevocable elec2 tion to have this subsection apply. 

3 ‘‘(h) REGULATIONS.—The Secretary may prescribe 

4 such regulations and other guidance as may be necessary 

5 or appropriate to carry out this section and section 

6 6432.’’. 

7 (b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE

8 2011.—Subchapter B of chapter 65, as amended by this 

9 Act, is amended by adding at the end the following new 

10 section: 

11 ‘‘SEC. 6432. CREDIT FOR QUALIFIED BONDS ALLOWED TO 

12 ISSUER. 

13 ‘‘(a) IN GENERAL.—In the case of a qualified bond 

14 issued before January 1, 2011, the issuer of such bond 

15 shall be allowed a credit with respect to each interest pay16 ment under such bond which shall be payable by the Sec17 retary as provided in subsection (b). 

18 ‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay 

19 (contemporaneously with each interest payment date 

20 under such bond) to the issuer of such bond (or to any 

21 person who makes such interest payments on behalf of the 

22 issuer) 35 percent of the interest payable under such bond 

23 on such date. 


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1 ‘‘(c) APPLICATION OF ARBITRAGE RULES.—For pur2 poses of section 148, the yield on a qualified bond shall 

3 be reduced by the credit allowed under this section. 

4 ‘‘(d) INTEREST PAYMENT DATE.—For purposes of 

5 this subsection, the term ‘interest payment date’ means 

6 each date on which interest is payable by the issuer under 

7 the terms of the bond. 

8 ‘‘(e) QUALIFIED BOND.—For purposes of this sub9 section, the term ‘qualified bond’ has the meaning given 

10 such term in section 54AA(h).’’. 

11 (c) CONFORMING AMENDMENTS.— 

12 (1) Section 1324(b)(2) of title 31, United 

13 States Code, is amended by striking ‘‘or 6428’’ and 

14 inserting ‘‘6428, or 6432,’’. 

15 (2) Section 54A(c)(1)(B) is amended by strik16 ing ‘‘subpart C’’ and inserting ‘‘subparts C and J’’. 

17 (3) Sections 54(c)(2), 1397E(c)(2), and 

18 1400N(l)(3)(B) are each amended by striking ‘‘and 

19 I’’ and inserting ‘‘, I, and J’’. 

20 (4) Section 6401(b)(1) is amended by striking 

21 ‘‘and I’’ and inserting ‘‘I, and J’’. 

22 (5) The table of subparts for part IV of sub23 chapter A of chapter 1 is amended by adding at the 

24 end the following new item: 

‘‘Subpart J. Taxable bond option for governmental bonds.’’. 


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1 (6) The table of sections for subchapter B of 

2 chapter 65, as amended by this Act, is amended by 

3 adding at the end the following new item: 

‘‘Sec. 6432. Credit for qualified bonds allowed to issuer on advance basis.’’. 

4 (d) TRANSITIONAL COORDINATION WITH STATE

5 LAW.—Except as otherwise provided by a State after the 

6 date of the enactment of this Act, the interest on any tax7 able governmental bond (as defined in section 54AA of 

8 the Internal Revenue Code of 1986, as added by this sec9 tion) and the amount of any credit determined under such 

10 section with respect to such bond shall be treated for pur11 poses of the income tax laws of such State as being exempt 

12 from Federal income tax. 

13 (e) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to obligations issued after the date 

15 of the enactment of this Act. 

16 PART 4—RECOVERY ZONE BONDS 

17 SEC. 1531. RECOVERY ZONE BONDS. 

18 (a) IN GENERAL.—Subchapter Y of chapter 1 is 

19 amended by adding at the end the following new part: 

20 ‘‘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. 

21 ‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. 

22 ‘‘(a) ALLOCATIONS.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall allo2 cate the national recovery zone economic develop3 ment bond limitation and the national recovery zone 

4 facility bond limitation among the States in the pro5 portion that each such State’s 2008 State employ6 ment decline bears to the aggregate of the 2008 

7 State employment declines for all of the States. 

8 ‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For 

9 purposes of this subsection, the term ‘2008 State 

10 employment decline’ means, with respect to any 

11 State, the excess (if any) of— 

12 ‘‘(A) the number of individuals employed 

13 in such State determined for December 2007, 

14 over 

15 ‘‘(B) the number of individuals employed 

16 in such State determined for December 2008. 

17 ‘‘(3) ALLOCATIONS BY STATES.— 

18 ‘‘(A) IN GENERAL.—Each State with re19 spect to which an allocation is made under 

20 paragraph (1) shall reallocate such allocation 

21 among the counties and large municipalities in 

22 such State in the proportion the each such 

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1 ployment declines for all the counties and mu2 nicipalities in such State. 

3 ‘‘(B) LARGE MUNICIPALITIES.—For pur4 poses of subparagraph (A), the term ‘large mu5 nicipality’ means a municipality with a popu6 lation of more than 100,000. 

7 ‘‘(C) DETERMINATION OF LOCAL EMPLOY8 MENT DECLINES.—For purposes of this para9 graph, the employment decline of any munici10 pality or county shall be determined in the 

11 same manner as determining the State employ12 ment decline under paragraph (2), except that 

13 in the case of a municipality any portion of 

14 which is in a county, such portion shall be 

15 treated as part of such municipality and not 

16 part of such county. 

17 ‘‘(4) NATIONAL LIMITATIONS.— 

18 ‘‘(A) RECOVERY ZONE ECONOMIC DEVEL19 OPMENT BONDS.—There is a national recovery 

20 zone economic development bond limitation of 

21 $10,000,000,000. 

22 ‘‘(B) RECOVERY ZONE FACILITY BONDS.— 

23 There is a national recovery zone facility bond 

24 limitation of $15,000,000,000. 


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1 ‘‘(b) RECOVERY ZONE.—For purposes of this part, 

2 the term ‘recovery zone’ means— 

3 ‘‘(1) any area designated by the issuer as hav4 ing significant poverty, unemployment, home fore5 closures, or general distress, and 

6 ‘‘(2) any area for which a designation as an em7 powerment zone or renewal community is in effect. 

8 ‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT 

9 BONDS. 

10 ‘‘(a) IN GENERAL.—In the case of a recovery zone 

11 economic development bond— 

12 ‘‘(1) such bond shall be treated as a qualified 

13 bond for purposes of section 6432, and 

14 ‘‘(2) subsection (b) of such section shall be ap15 plied by substituting ‘55 percent’ for ‘35 percent’. 

16 ‘‘(b) RECOVERY ZONE ECONOMIC DEVELOPMENT

17 BOND.— 

18 ‘‘(1) IN GENERAL.—For purposes of this sec19 tion, the term ‘recovery zone economic development 

20 bond’ means any taxable governmental bond (as de21 fined in section 54AA(d)) issued before January 1, 

22 2011, as part of issue if— 

23 ‘‘(A) 100 percent of the available project 

24 proceeds (as defined in section 54A) of such 


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1 issue are to be used for one or more qualified 

2 economic development purposes, and 

3 ‘‘(B) the issuer designates such bond for 

4 purposes of this section. 

5 ‘‘(2) LIMITATION ON AMOUNT OF BONDS DES6 IGNATED.—The maximum aggregate face amount of 

7 bonds which may be designated by any issuer under 

8 paragraph (1) shall not exceed the amount of the re9 covery zone economic development bond limitation 

10 allocated to such issuer under section 1400U–1. 

11 ‘‘(c) QUALIFIED ECONOMIC DEVELOPMENT PUR12 POSE.—For purposes of this section, the term ‘qualified 

13 economic development purpose’ means expenditures for 

14 purposes of promoting development or other economic ac15 tivity in a recovery zone, including— 

16 ‘‘(1) capital expenditures paid or incurred with 

17 respect to property located in such zone, 

18 ‘‘(2) expenditures for public infrastructure and 

19 construction of public facilities, and 

20 ‘‘(3) expenditures for job training and edu21 cational programs. 

22 ‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. 

23 ‘‘(a) IN GENERAL.—For purposes of part IV of sub24 chapter B (relating to tax exemption requirements for 


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1 State and local bonds), the term ‘exempt facility bond’ in2 cludes any recovery zone facility bond. 

3 ‘‘(b) RECOVERY ZONE FACILITY BOND.— 

4 ‘‘(1) IN GENERAL.—For purposes of this sec5 tion, the term ‘recovery zone facility bond’ means 

6 any bond issued as part of an issue if— 

7 ‘‘(A) 95 percent or more of the net pro8 ceeds (as defined in section 150(a)(3)) of such 

9 issue are to be used for recovery zone property, 

10 ‘‘(B) such bond is issued before January 1, 

11 2011, and 

12 ‘‘(C) the issuer designates such bond for 

13 purposes of this section. 

14 ‘‘(2) LIMITATION ON AMOUNT OF BONDS DES15 IGNATED.—The maximum aggregate face amount of 

16 bonds which may be designated by any issuer under 

17 paragraph (1) shall not exceed the amount of recov18 ery zone facility bond limitation allocated to such 

19 issuer under section 1400U–1. 

20 ‘‘(c) RECOVERY ZONE PROPERTY.—For purposes of 

21 this section— 

22 ‘‘(1) IN GENERAL.—The term ‘recovery zone 

23 property’ means any property to which section 168 

24 applies (or would apply but for section 179) if— 


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1 ‘‘(A) such property was acquired by the 

2 taxpayer by purchase (as defined in section 

3 179(d)(2)) after the date on which the designa4 tion of the recovery zone took effect, 

5 ‘‘(B) the original use of which in the recov6 ery zone commences with the taxpayer, and 

7 ‘‘(C) substantially all of the use of which 

8 is in the recovery zone and is in the active con9 duct of a qualified business by the taxpayer in 

10 such zone. 

11 ‘‘(2) QUALIFIED BUSINESS.—The term ‘quali12 fied business’ means any trade or business except 

13 that— 

14 ‘‘(A) the rental to others of real property 

15 located in a recovery zone shall be treated as a 

16 qualified business only if the property is not 

17 residential rental property (as defined in section 

18 168(e)(2)), and 

19 ‘‘(B) such term shall not include any trade 

20 or business consisting of the operation of any 

21 facility described in section 144(c)(6)(B). 

22 ‘‘(3) SPECIAL RULES FOR SUBSTANTIAL REN23 OVATIONS AND SALE-LEASEBACK.—Rules similar to 

24 the rules of subsections (a)(2) and (b) of section 

25 1397D shall apply for purposes of this subsection. 


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1 ‘‘(d) NONAPPLICATION OF CERTAIN RULES.—Sec2 tions 146 (relating to volume cap) and 147(d) (relating 

3 to acquisition of existing property not permitted) shall not 

4 apply to any recovery zone facility bond.’’. 

5 (b) CLERICAL AMENDMENT.—The table of parts for 

6 subchapter Y of chapter 1 of such Code is amended by 

7 adding at the end the following new item: 

‘‘PART III. RECOVERY ZONE BONDS.’’. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to obligations issued after the date 

10 of the enactment of this Act. 

11 SEC. 1532. TRIBAL ECONOMIC DEVELOPMENT BONDS. 

12 (a) IN GENERAL.—Section 7871 is amended by add13 ing at the end the following new subsection: 

14 ‘‘(f) TRIBAL ECONOMIC DEVELOPMENT BONDS.— 

15 ‘‘(1) ALLOCATION OF LIMITATION.— 

16 ‘‘(A) IN GENERAL.—The Secretary shall 

17 allocate the national tribal economic develop18 ment bond limitation among the Indian tribal 

19 governments in such manner as the Secretary, 

20 in consultation with the Secretary of the Inte21 rior, determines appropriate. 

22 ‘‘(B) NATIONAL LIMITATION.—There is a 

23 national tribal economic development bond limi24 tation of $2,000,000,000. 


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1 ‘‘(2) BONDS TREATED AS EXEMPT FROM

2 TAX.—In the case of a tribal economic development 

3 bond— 

4 ‘‘(A) notwithstanding subsection (c), such 

5 bond shall be treated for purposes of this title 

6 in the same manner as if such bond were issued 

7 by a State, and 

8 ‘‘(B) section 146 shall not apply. 

9 ‘‘(3) TRIBAL ECONOMIC DEVELOPMENT

10 BOND.— 

11 ‘‘(A) IN GENERAL.—For purposes of this 

12 section, the term ‘tribal economic development 

13 bond’ means any bond issued by an Indian trib14 al government— 

15 ‘‘(i) the interest on which is not ex16 empt from tax under section 103 by reason 

17 of subsection (c) (determined without re18 gard to this subsection) but would be so 

19 exempt if issued by a State or local govern20 ment, and 

21 ‘‘(ii) which is designated by the In22 dian tribal government as a tribal eco23 nomic development bond for purposes of 

24 this subsection. 


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1 ‘‘(B) EXCEPTIONS.—The term tribal eco2 nomic development bond shall not include any 

3 bond issued as part of an issue if any portion 

4 of the proceeds of such issue are used to fi5 nance— 

6 ‘‘(i) any portion of a building in which 

7 class II or class III gaming (as defined in 

8 section 4 of the Indian Gaming Regulatory 

9 Act) is conducted or housed or any other 

10 property actually used in the conduct of 

11 such gaming, or 

12 ‘‘(ii) any facility located outside the 

13 Indian reservation (as defined in section 

14 168(j)(6)). 

15 ‘‘(C) LIMITATION ON AMOUNT OF BONDS

16 DESIGNATED.—The maximum aggregate face 

17 amount of bonds which may be designated by 

18 any Indian tribal government under subpara19 graph (A) shall not exceed the amount of na20 tional tribal economic development bond limita21 tion allocated to such government under para22 graph (1).’’. 

23 (b) STUDY.—The Secretary of the Treasury, or the 

24 Secretary’s delegate, shall conduct a study of the effects 

25 of the amendment made by subsection (a). Not later than 


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1 1 year after the date of the enactment of this Act, the 

2 Secretary of the Treasury, or the Secretary’s delegate, 

3 shall report to Congress on the results of the studies con4 ducted under this paragraph, including the Secretary’s 

5 recommendations regarding such amendment. 

6 (c) EFFECTIVE DATE.—The amendment made by 

7 subsection (a) shall apply to obligations issued after the 

8 date of the enactment of this Act. 

9 PART 5—REPEAL OF WITHHOLDING TAX ON 

10 GOVERNMENT CONTRACTORS 

11 SEC. 1541. REPEAL OF WITHHOLDING TAX ON GOVERN12 MENT CONTRACTORS. 

13 Section 3402 is amended by striking subsection (t). 

14 Subtitle G—Energy Incentives 

15 PART 1—RENEWABLE ENERGY INCENTIVES 

16 SEC. 1601. EXTENSION OF CREDIT FOR ELECTRICITY PRO17 DUCED FROM CERTAIN RENEWABLE RE18 SOURCES. 

19 (a) IN GENERAL.—Subsection (d) of section 45 is 

20 amended— 

21 (1) by striking ‘‘2010’’ in paragraph (1) and in22 serting ‘‘2013’’, 

23 (2) by striking ‘‘2011’’ each place it appears in 

24 paragraphs (2), (3), (4), (6), (7) and (9) and insert25 ing ‘‘2014’’, and 


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1 (3) by striking ‘‘2012’’ in paragraph (11)(B) 

2 and inserting ‘‘2014’’. 

3 (b) TECHNICAL AMENDMENT.—Paragraph (5) of 

4 section 45(d) is amended by striking ‘‘and before’’ and 

5 all that follows and inserting ‘‘ and before October 3, 

6 2008.’’. 

7 (c) EFFECTIVE DATE.— 

8 (1) IN GENERAL.—The amendments made by 

9 subsection (a) shall apply to property placed in serv10 ice after the date of the enactment of this Act. 

11 (2) TECHNICAL AMENDMENT.—The amendment 

12 made by subsection (b) shall take effect as if in13 cluded in section 102 of the Energy Improvement 

14 and Extension Act of 2008. 

15 SEC. 1602. ELECTION OF INVESTMENT CREDIT IN LIEU OF 

16 PRODUCTION CREDIT. 

17 (a) IN GENERAL.—Subsection (a) of section 48 is 

18 amended by adding at the end the following new para19 graph: 

20 ‘‘(5) ELECTION TO TREAT QUALIFIED FACILI21 TIES AS ENERGY PROPERTY.— 

22 ‘‘(A) IN GENERAL.—In the case of any 

23 qualified investment credit facility placed in 

24 service in 2009 or 2010— 


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1 ‘‘(i) such facility shall be treated as 

2 energy property for purposes of this sec3 tion, and 

4 ‘‘(ii) the energy percentage with re5 spect to such property shall be 30 percent. 

6 ‘‘(B) DENIAL OF PRODUCTION CREDIT.— 

7 No credit shall be allowed under section 45 for 

8 any taxable year with respect to any qualified 

9 investment credit facility. 

10 ‘‘(C) QUALIFIED INVESTMENT CREDIT FA11 CILITY.—For purposes of this paragraph, the 

12 term ‘qualified investment credit facility’ means 

13 any facility described in paragraph (1), (2), (3), 

14 (4), (6), (7), (9), or (11) of section 45(d) if no 

15 credit has been allowed under section 45 with 

16 respect to such facility and the taxpayer makes 

17 an irrevocable election to have this paragraph 

18 apply to such facility.’’. 

19 (b) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to facilities placed in service after 

21 December 31, 2008. 

22 SEC. 1603. REPEAL OF CERTAIN LIMITATIONS ON CREDIT 

23 FOR RENEWABLE ENERGY PROPERTY. 

24 (a) REPEAL OF LIMITATION ON CREDIT FOR QUALI25 FIED SMALL WIND ENERGY PROPERTY.—Paragraph (4) 


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1 of section 48(c) is amended by striking subparagraph (B) 

2 and by redesignating subparagraphs (C) and (D) as sub3 paragraphs (B) and (C). 

4 (b) REPEAL OF LIMITATION ON PROPERTY FI5 NANCED BY SUBSIDIZED ENERGY FINANCING.— 

6 (1) IN GENERAL.—Subsection (a) of section 48 

7 is amended by striking paragraph (4). 

8 (2) CONFORMING AMENDMENTS.— 

9 (A) Section 25C(e)(1) is amended by strik10 ing ‘‘(8), and (9)’’ and inserting ‘‘and (8)’’. 

11 (B) Section 25D(e) is amended by striking 

12 paragraph (9). 

13 (c) EFFECTIVE DATE.— 

14 (1) IN GENERAL.—Except as provided in para15 graph (2),the amendment made by this section shall 

16 apply to periods after December 31, 2008, under 

17 rules similar to the rules of section 48(m) of the In18 ternal Revenue Code of 1986 (as in effect on the day 

19 before the date of the enactment of the Revenue 

20 Reconciliation Act of 1990). 

21 (2) CONFORMING AMENDMENTS.—The amend22 ments made by subsection (b)(2) shall apply to tax23 able years beginning after December 31, 2008. 


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1 SEC. 1604. COORDINATION WITH RENEWABLE ENERGY 

2 GRANTS. 

3 Section 48 is amended by adding at the end the fol4 lowing new subsection: 

5 ‘‘(d) COORDINATION WITH DEPARTMENT OF EN6 ERGY GRANTS.—In the case of any property with respect 

7 to which the Secretary of Energy makes a grant under 

8 section 1721 of the American Recovery and Reinvestment 

9 Tax Act of 2009— 

10 ‘‘(1) DENIAL OF PRODUCTION AND INVEST11 MENT CREDITS.—No credit shall be determined 

12 under this section or section 45 with respect to such 

13 property for the taxable year in which such grant is 

14 made or any subsequent taxable year. 

15 ‘‘(2) RECAPTURE OF CREDITS FOR PROGRESS

16 EXPENDITURES MADE BEFORE GRANT.—If a credit 

17 was determined under this section with respect to 

18 such property for any taxable year ending before 

19 such grant is made— 

20 ‘‘(A) the tax imposed under subtitle A on 

21 the taxpayer for the taxable year in which such 

22 grant is made shall be increased by so much of 

23 such credit as was allowed under section 38, 

24 ‘‘(B) the general business carryforwards 

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1 capture the portion of such credit which was 

2 not so allowed, and 

3 ‘‘(C) the amount of such grant shall be de4 termined without regard to any reduction in the 

5 basis of such property by reason of such credit. 

6 ‘‘(3) TREATMENT OF GRANTS.—Any such grant 

7 shall— 

8 ‘‘(A) not be includible in the gross income 

9 of the taxpayer, but 

10 ‘‘(B) shall be taken into account in deter11 mining the basis of the property to which such 

12 grant relates, except that the basis of such 

13 property shall be reduced under section 50(c) in 

14 the same manner as a credit allowed under sub15 section (a).’’. 

16 PART 2—INCREASED ALLOCATIONS OF NEW 

17 CLEAN RENEWABLE ENERGY BONDS AND 

18 QUALIFIED ENERGY CONSERVATION BONDS 

19 SEC. 1611. INCREASED LIMITATION ON ISSUANCE OF NEW 

20 CLEAN RENEWABLE ENERGY BONDS. 

21 Subsection (c) of section 54C is amended by adding 

22 at the end the following new paragraph: 

23 ‘‘(4) ADDITIONAL LIMITATION.—The national 

24 new clean renewable energy bond limitation shall be 

25 increased by $1,600,000,000. Such increase shall be 


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1 allocated by the Secretary consistent with the rules 

2 of paragraphs (2) and (3).’’. 

3 SEC. 1612. INCREASED LIMITATION AND EXPANSION OF 

4 QUALIFIED ENERGY CONSERVATION BONDS. 

5 (a) INCREASED LIMITATION.—Subsection (e) of sec6 tion 54D is amended by adding at the end the following 

7 new paragraph: 

8 ‘‘(4) ADDITIONAL LIMITATION.—The national 

9 qualified energy conservation bond limitation shall 

10 be increased by $2,400,000,000. Such increase shall 

11 be allocated by the Secretary consistent with the 

12 rules of paragraphs (1), (2), and (3).’’. 

13 (b) LOANS AND GRANTS TO IMPLEMENT GREEN

14 COMMUNITY PROGRAMS.— 

15 (1) IN GENERAL.—Subparagraph (A) of section 

16 54D(f)(1) is amended by inserting ‘‘(or loans or 

17 grants for capital expenditures to implement any 

18 green community program)’’ after ‘‘Capital expendi19 tures’’. 

20 (2) BONDS TO IMPLEMENT GREEN COMMUNITY

21 PROGRAMS NOT TREATED AS PRIVATE ACTIVITY

22 BONDS FOR PURPOSES OF LIMITATIONS ON QUALI23 FIED ENERGY CONSERVATION BONDS .—Subsection 

24 (e) of section 54D is amended by adding at the end 

25 the following new paragraph: 


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1 ‘‘(4) BONDS TO IMPLEMENT GREEN COMMU2 NITY PROGRAMS NOT TREATED AS PRIVATE ACTIV3 ITY BONDS.—For purposes of paragraph (3) and 

4 subsection (f)(2), a bond shall not be treated as a 

5 private activity bond solely because proceeds of the 

6 issue of which such bond is a part are to be used 

7 for loans or grants for capital expenditures to imple8 ment any green community program.’’. 

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 PART 3—ENERGY CONSERVATION INCENTIVES 

13 SEC. 1621. EXTENSION AND MODIFICATION OF CREDIT FOR 

14 NONBUSINESS ENERGY PROPERTY. 

15 (a) IN GENERAL.—Section 25C is amended by strik16 ing subsections (a) and (b) and inserting the following new 

17 subsections: 

18 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in19 dividual, there shall be allowed as a credit against the tax 

20 imposed by this chapter for the taxable year an amount 

21 equal to 30 percent of the sum of— 

22 ‘‘(1) the amount paid or incurred by the tax23 payer during such taxable year for qualified energy 

24 efficiency improvements, and 


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1 ‘‘(2) the amount of the residential energy prop2 erty expenditures paid or incurred by the taxpayer 

3 during such taxable year. 

4 ‘‘(b) LIMITATION.—The aggregate amount of the 

5 credits allowed under this section for taxable years begin6 ning in 2009 and 2010 with respect to any taxpayer shall 

7 not exceed $1,500.’’. 

8 (b) EXTENSION.—Section 25C(g)(2) is amended by 

9 striking ‘‘December 31, 2009’’ and inserting ‘‘December 

10 31, 2010’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2008. 

14 SEC. 1622. MODIFICATION OF CREDIT FOR RESIDENTIAL 

15 ENERGY EFFICIENT PROPERTY. 

16 (a) REMOVAL OF CREDIT LIMITATION FOR PROP17 ERTY PLACED IN SERVICE.— 

18 (1) IN GENERAL.—Paragraph (1) of section 

19 25D(b) is amended to read as follows: 

20 ‘‘(1) MAXIMUM CREDIT FOR FUEL CELLS.—In 

21 the case of any qualified fuel cell property expendi22 ture, the credit allowed under subsection (a) (deter23 mined without regard to subsection (c)) for any tax24 able year shall not exceed $500 with respect to each 

25 half kilowatt of capacity of the qualified fuel cell 


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1 property (as defined in section 48(c)(1)) to which 

2 such expenditure relates.’’. 

3 (2) CONFORMING AMENDMENT.—Paragraph (4) 

4 of section 25D(e) is amended— 

5 (A) by striking all that precedes subpara6 graph (B) and inserting the following: 

7 ‘‘(4) FUEL CELL EXPENDITURE LIMITATIONS

8 IN CASE OF JOINT OCCUPANCY.—In the case of any 

9 dwelling unit with respect to which qualified fuel cell 

10 property expenditures are made and which is jointly 

11 occupied and used during any calendar year as a 

12 residence by two or more individuals the following 

13 rules shall apply: 

14 ‘‘(A) MAXIMUM EXPENDITURES FOR FUEL

15 CELLS.—The maximum amount of such ex16 penditures which may be taken into account 

17 under subsection (a) by all such individuals 

18 with respect to such dwelling unit during such 

19 calendar year shall be $1,667 in the case of 

20 each half kilowatt of capacity of qualified fuel 

21 cell property (as defined in section 48(c)(1)) 

22 with respect to which such expenditures re23 late.’’, and 

24 (B) by striking subparagraph (C). 


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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. 1623. TEMPORARY INCREASE IN CREDIT FOR ALTER5 NATIVE FUEL VEHICLE REFUELING PROP6 ERTY. 

7 (a) IN GENERAL.—Section 30C(e) is amended by 

8 adding at the end the following new paragraph: 

9 ‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN

10 SERVICE DURING 2009 AND 2010.—In the case of 

11 property placed in service in taxable years beginning 

12 after December 31, 2008, and before January 1, 

13 2011— 

14 ‘‘(A) in the case of any such property 

15 which does not relate to hydrogen— 

16 ‘‘(i) subsection (a) shall be applied by 

17 substituting ‘50 percent’ for ‘30 percent’, 

18 ‘‘(ii) subsection (b)(1) shall be applied 

19 by substituting ‘$50,000’ for ‘$30,000’, 

20 and 

21 ‘‘(iii) subsection (b)(2) shall be ap22 plied by substituting ‘$2,000’ for ‘$1,000’, 

23 and 

24 ‘‘(B) in the case of any such property 

25 which relates to hydrogen, subsection (b) shall 


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1 be applied by substituting ‘$200,000’ for 

2 ‘$30,000’.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2008. 

6 PART 4—ENERGY RESEARCH INCENTIVES 

7 SEC. 1631. INCREASED RESEARCH CREDIT FOR ENERGY RE8 SEARCH. 

9 (a) IN GENERAL.—Section 41 is amended by redesig10 nating subsection (h) as subsection (i) and by inserting 

11 after subsection (g) the following new subsection: 

12 ‘‘(h) ENERGY RESEARCH CREDIT.—In the case of 

13 any taxable year beginning in 2009 or 2010— 

14 ‘‘(1) IN GENERAL.—The credit determined 

15 under subsection (a)(1) shall be increased by 20 per16 cent of the qualified energy research expenses for 

17 the taxable year. 

18 ‘‘(2) QUALIFIED ENERGY RESEARCH EX19 PENSES.—For purposes of this subsection, the term 

20 ‘qualified energy research expenses’ means so much 

21 of the taxpayer’s qualified research expenses as are 

22 related to the fields of fuel cells and battery tech23 nology, renewable energy, energy conservation tech24 nology, efficient transmission and distribution of 

25 electricity, and carbon capture and sequestration. 


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1 ‘‘(3) COORDINATION WITH OTHER RESEARCH

2 CREDITS.— 

3 ‘‘(A) INCREMENTAL CREDIT.—The amount 

4 of qualified energy research expenses taken into 

5 account under subsection (a)(1)(A) shall not ex6 ceed the base amount. 

7 ‘‘(B) ALTERNATIVE SIMPLIFIED CREDIT.— 

8 For purposes of subsection (c)(5), the amount 

9 of qualified energy research expenses taken into 

10 account for the taxable year for which the cred11 it is being determined shall not exceed— 

12 ‘‘(i) in the case of subsection 

13 (c)(5)(A), 50 percent of the average quali14 fied research expenses for the 3 taxable 

15 years preceding the taxable year for which 

16 the credit is being determined, and 

17 ‘‘(ii) in the case of subsection 

18 (c)(5)(B)(ii), zero. 

19 ‘‘(C) BASIC RESEARCH AND ENERGY RE20 SEARCH CONSORTIUM PAYMENTS.—Any amount 

21 taken into account under paragraph (1) shall 

22 not be taken into account under paragraph (2) 

23 or (3) of subsection (a).’’. 

24 (b) CONFORMING AMENDMENT.—Subparagraph (B) 

25 of section 41(i)(1)(B), as redesignated by subsection (a), 


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1 is amended by inserting ‘‘(in the case of the increase in 

2 the credit determined under subsection (h), December 31, 

3 2010)’’ after ‘‘December 31, 2009’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2008. 

7 Subtitle H—Other Provisions 

8 PART 1—APPLICATION OF CERTAIN LABOR 

9 STANDARDS TO PROJECTS FINANCED WITH 

10 CERTAIN TAX-FAVORED BONDS 

11 SEC. 1701. APPLICATION OF CERTAIN LABOR STANDARDS 

12 TO PROJECTS FINANCED WITH CERTAIN TAX13 FAVORED BONDS. 

14 Subchapter IV of chapter 31 of the title 40, United 

15 States Code, shall apply to projects financed with the pro16 ceeds of— 

17 (1) any qualified clean renewable energy bond 

18 (as defined in section 54C of the Internal Revenue 

19 Code of 1986) issued after the date of the enact20 ment of this Act, 

21 (2) any qualified energy conservation bond (as 

22 defined in section 54D of the Internal Revenue Code 

23 of 1986) issued after the date of the enactment of 

24 this Act, 


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1 (3) any qualified zone academy bond (as de2 fined in section 54E of the Internal Revenue Code 

3 of 1986) issued after the date of the enactment of 

4 this Act, 

5 (4) any qualified school construction bond (as 

6 defined in section 54F of the Internal Revenue Code 

7 of 1986), and 

8 (5) any recovery zone economic development 

9 bond (as defined in section 1400U–2 of the Internal 

10 Revenue Code of 1986). 

11 PART 2—GRANTS TO PROVIDE FINANCING FOR 

12 LOW-INCOME HOUSING 

13 SEC. 1711. GRANTS TO STATES FOR LOW-INCOME HOUSING 

14 PROJECTS IN LIEU OF LOW-INCOME HOUS15 ING CREDIT ALLOCATIONS FOR 2009. 

16 (a) IN GENERAL.—The Secretary of the Treasury 

17 shall make a grant to the housing credit agency of each 

18 State in an amount equal to such State’s low-income hous19 ing grant election amount. 

20 (b) LOW-INCOME HOUSING GRANT ELECTION

21 AMOUNT.—For purposes of this section, the term ‘‘low22 income housing grant election amount’’ means, with re23 spect to any State, such amount as the State may elect 

24 which does not exceed 85 percent of the product of— 

25 (1) the sum of— 


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1 (A) 100 percent of the State housing credit 

2 ceiling for 2009 which is attributable to 

3 amounts described in clauses (i) and (iii) of sec4 tion 42(h)(3)(C) of the Internal Revenue Code 

5 of 1986, and 

6 (B) 40 percent of the State housing credit 

7 ceiling for 2009 which is attributable to 

8 amounts described in clauses (ii) and (iv) of 

9 such section, multiplied by 

10 (2) 10. 

11 (c) SUBAWARDS FOR LOW-INCOME BUILDINGS.— 

12 (1) IN GENERAL.—A State housing credit agen13 cy receiving a grant under this section shall use such 

14 grant to make subawards to finance the construction 

15 or acquisition and rehabilitation of qualified low-in16 come buildings. A subaward under this section may 

17 be made to finance a qualified low-income building 

18 with or without an allocation under section 42 of the 

19 Internal Revenue Code of 1986, except that a State 

20 housing credit agency may make subawards to fi21 nance qualified low-income buildings without an allo22 cation only if it makes a determination that such use 

23 will increase the total funds available to the State to 

24 build and rehabilitate affordable housing. In com25 plying with such determination requirement, a State 


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1 housing credit agency shall establish a process in 

2 which applicants that are allocated credits are re3 quired to demonstrate good faith efforts to obtain 

4 investment commitments for such credits before the 

5 agency makes such subawards. 

6 (2) SUBAWARDS SUBJECT TO SAME REQUIRE7 MENTS AS LOW-INCOME HOUSING CREDIT ALLOCA8 TIONS.—Any such subaward with respect to any 

9 qualified low-income building shall be made in the 

10 same manner and shall be subject to the same limi11 tations (including rent, income, and use restrictions 

12 on such building) as an allocation of housing credit 

13 dollar amount allocated by such State housing credit 

14 agency under section 42 of the Internal Revenue 

15 Code of 1986, except that such subawards shall not 

16 be limited by, or otherwise affect (except as provided 

17 in subsection (h)(3)(J) of such section), the State 

18 housing credit ceiling applicable to such agency. 

19 (3) COMPLIANCE AND ASSET MANAGEMENT.— 

20 The State housing credit agency shall perform asset 

21 management functions to ensure compliance with 

22 section 42 of the Internal Revenue Code of 1986 

23 and the long-term viability of buildings funded by 

24 any subaward under this section. The State housing 

25 credit agency may collect reasonable fees from a 


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1 subaward recipient to cover expenses associated with 

2 the performance of its duties under this paragraph. 

3 The State housing credit agency may retain an 

4 agent or other private contractor to satisfy the re5 quirements of this paragraph. 

6 (4) RECAPTURE.—The State housing credit 

7 agency shall impose conditions or restrictions, in8 cluding a requirement providing for recapture, on 

9 any subaward under this section so as to assure that 

10 the building with respect to which such subaward is 

11 made remains a qualified low-income building during 

12 the compliance period. Any such recapture shall be 

13 payable to the Secretary of the Treasury for deposit 

14 in the general fund of the Treasury and may be en15 forced by means of liens or such other methods as 

16 the Secretary of the Treasury determines appro17 priate. 

18 (d) RETURN OF UNUSED GRANT FUNDS.—Any grant 

19 funds not used to make subawards under this section be20 fore January 1, 2011, shall be returned to the Secretary 

21 of the Treasury on such date. Any subawards returned 

22 to the State housing credit agency on or after such date 

23 shall be promptly returned to the Secretary of the Treas24 ury. Any amounts returned to the Secretary of the TreasVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00329 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 ury under this subsection shall be deposited in the general 

2 fund of the Treasury. 

3 (e) DEFINITIONS.—Any term used in this section 

4 which is also used in section 42 of the Internal Revenue 

5 Code of 1986 shall have the same meaning for purposes 

6 of this section as when used in such section 42. Any ref7 erence in this section to the Secretary of the Treasury 

8 shall be treated as including the Secretary’s delegate. 

9 (f) APPROPRIATIONS.—There is hereby appropriated 

10 to the Secretary of the Treasury such sums as may be 

11 necessary to carry out this section. 

12 PART 3—GRANTS FOR SPECIFIED ENERGY 

13 PROPERTY IN LIEU OF TAX CREDITS 

14 SEC. 1721. GRANTS FOR SPECIFIED ENERGY PROPERTY IN 

15 LIEU OF TAX CREDITS. 

16 (a) IN GENERAL.—Upon application, the Secretary 

17 of Energy shall, within 60 days of the application and sub18 ject to the requirements of this section, provide a grant 

19 to each person who places in service specified energy prop20 erty during 2009 or 2010 to reimburse such person for 

21 a portion of the expense of such facility as provided in 

22 subsection (b). 

23 (b) GRANT AMOUNT.— 

24 (1) IN GENERAL.—The amount of the grant 

25 under subsection (a) with respect to any specified 


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1 energy property shall be the applicable percentage of 

2 the basis of such facility. 

3 (2) APPLICABLE PERCENTAGE.—For purposes 

4 of paragraph (1), the term ‘‘applicable percentage’’ 

5 means— 

6 (A) 30 percent in the case of any property 

7 described in paragraphs (1) through (4) of sub8 section (c), and 

9 (B) 10 percent in the case of any other 

10 property. 

11 (3) DOLLAR LIMITATIONS.—In the case of 

12 property described in paragraph (2), (6), or (7) of 

13 subsection (c), the amount of any grant under this 

14 section with respect to such property shall not ex15 ceed the limitation described in section 48(c)(1)(B), 

16 48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue 

17 Code of 1986, respectively, with respect to such 

18 property. 

19 (c) SPECIFIED ENERGY PROPERTY.—For purposes 

20 of this section, the term ‘‘specified energy property’’ 

21 means any of the following: 

22 (1) QUALIFIED FACILITIES.—Any facility de23 scribed in paragraph (1), (2), (3), (4), (6), (7), (9), 

24 or (11) of section 45(d) of the Internal Revenue 

25 Code of 1986. 


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1 (2) QUALIFIED FUEL CELL PROPERTY.—Any 

2 qualified fuel cell property (as defined in section 

3 48(c)(1) of such Code). 

4 (3) SOLAR PROPERTY.—Any property described 

5 in clause (i) or (ii) of section 48(a)(3)(A) of such 

6 Code. 

7 (4) QUALIFIED SMALL WIND ENERGY PROP8 ERTY.—Any qualified small wind energy property 

9 (as defined in section 48(c)(4) of such Code). 

10 (5) GEOTHERMAL PROPERTY.—Any property 

11 described in clause (iii) of section 48(a)(3)(A) of 

12 such Code. 

13 (6) QUALIFIED MICROTURBINE PROPERTY.— 

14 Any qualified microturbine property (as defined in 

15 section 48(c)(2) of such Code). 

16 (7) COMBINED HEAT AND POWER SYSTEM

17 PROPERTY.—Any combined heat and power system 

18 property (as defined in section 48(c)(3) of such 

19 Code). 

20 (8) GEOTHERMAL HEATPUMP PROPERTY.—Any 

21 property described in clause (vii) of section 

22 48(a)(3)(A) of such Code. 

23 (d) APPLICATION OF CERTAIN RULES.—In making 

24 grants under this section, the Secretary of Energy shall 

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1 nal Revenue Code of 1986. In applying such rules, if the 

2 facility is disposed of, or otherwise ceases to be a qualified 

3 renewable energy facility, the Secretary of Energy shall 

4 provide for the recapture of the appropriate percentage of 

5 the grant amount in such manner as the Secretary of En6 ergy determines appropriate. 

7 (e) EXCEPTION FOR CERTAIN NON-TAXPAYERS.— 

8 The Secretary of Energy shall not make any grant under 

9 this section to any Federal, State, or local government (or 

10 any political subdivision, agency, or instrumentality there11 of) or any organization described in section 501(c) of the 

12 Internal Revenue Code of 1986 and exempt from tax 

13 under section 501(a) of such Code. 

14 (f) DEFINITIONS.—Terms used in this section which 

15 are also used in section 45 or 48 of the Internal Revenue 

16 Code of 1986 shall have the same meaning for purposes 

17 of this section as when used in such section 45 or 48. 

18 Any reference in this section to the Secretary of the Treas19 ury shall be treated as including the Secretary’s delegate. 

20 (g) COORDINATION BETWEEN DEPARTMENTS OF

21 TREASURY AND ENERGY.—The Secretary of the Treasury 

22 shall provide the Secretary of Energy with such technical 

23 assistance as the Secretary of Energy may require in car24 rying out this section. The Secretary of Energy shall pro25 vide the Secretary of the Treasury with such information 


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1 as the Secretary of the Treasury may require in carrying 

2 out the amendment made by section 1604. 

3 (h) APPROPRIATIONS.—There is hereby appropriated 

4 to the Secretary of Energy such sums as may be necessary 

5 to carry out this section. 

6 (i) TERMINATION.—The Secretary of Energy shall 

7 not make any grant to any person under this section un8 less the application of such person for such grant is re9 ceived before October 1, 2011. 

10 PART 4—STUDY OF ECONOMIC, EMPLOYMENT, 

11 AND RELATED EFFECTS OF THIS ACT 

12 SEC. 1731. STUDY OF ECONOMIC, EMPLOYMENT, AND RE13 LATED EFFECTS OF THIS ACT. 

14 On February 1, 2010, and every 3 months thereafter 

15 in calendar year 2010, the Comptroller General of the 

16 United States shall submit to the Committee on Ways and 

17 Means a written report on the most recent national (and, 

18 where available, State-by-State) information on— 

19 (1) the economic effects of this Act; 

20 (2) the employment effects of this Act, includ21 ing— 

22 (A) a comparison of the number of jobs 

23 preserved and the number of jobs created as a 

24 result of this Act; and 


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1 (B) a comparison of the numbers of jobs 

2 preserved and the number of jobs created in 

3 each of the public and private sectors; 

4 (3) the share of tax and non-tax expenditures 

5 provided under this Act that were spent or saved, by 

6 group and income class; 

7 (4) how the funds provided to States under this 

8 Act have been spent, including a breakdown of— 

9 (A) funds used for services provided to citi10 zens; and 

11 (B) wages and other compensation for 

12 public employees; and 

13 (5) a description of any funds made available 

14 under this Act that remain unspent, and the reasons 

15 why. 

16 TITLE II—ASSISTANCE FOR UN17 EMPLOYED WORKERS AND 

18 STRUGGLING FAMILIES 

19 SEC. 2000. SHORT TITLE. 

20 This title may be cited as the ‘‘Assistance for Unem21 ployed Workers and Struggling Families Act’’. 


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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 

7 U.S.C. 3304 note), as amended by section 4 of the Unem8 ployment Compensation Extension Act of 2008 (Public 

9 Law 110–449; 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 

25 Social Security Act) such sums as the Secretary of 


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1 Labor estimates to be necessary to make payments 

2 to States under this title by reason of the amend3 ments made by section 2001(a) of the Assistance for 

4 Unemployed Workers and Struggling Families Act; 

5 and 

6 ‘‘(2) to the employment security administration 

7 account (as established by section 901 of the Social 

8 Security Act) such sums as the Secretary of Labor 

9 estimates to be necessary for purposes of assisting 

10 States in meeting administrative costs by reason of 

11 the amendments referred to in paragraph (1). 

12 There are appropriated from the general fund of the 

13 Treasury, without fiscal year limitation, the sums referred 

14 to in the preceding sentence and such sums shall not be 

15 required to be repaid.’’. 

16 SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION 

17 BENEFITS. 

18 (a) FEDERAL-STATE AGREEMENTS.—Any State 

19 which desires to do so may enter into and participate in 

20 an agreement under this section with the Secretary of 

21 Labor (hereinafter in this section referred to as the ‘‘Sec22 retary’’). Any State which is a party to an agreement 

23 under this section may, upon providing 30 days’ written 

24 notice to the Secretary, terminate such agreement. 

25 (b) PROVISIONS OF AGREEMENT.— 


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1 (1) ADDITIONAL COMPENSATION.—Any agree2 ment under this section shall provide that the State 

3 agency of the State will make payments of regular 

4 compensation to individuals in amounts and to the 

5 extent that they would be determined if the State 

6 law of the State were applied, with respect to any 

7 week for which the individual is (disregarding this 

8 section) otherwise entitled under the State law to re9 ceive regular compensation, as if such State law had 

10 been modified in a manner such that the amount of 

11 regular compensation (including dependents’ allow12 ances) payable for any week shall be equal to the 

13 amount determined under the State law (before the 

14 application of this paragraph) plus an additional 

15 $25. 

16 (2) ALLOWABLE METHODS OF PAYMENT.—Any 

17 additional compensation provided for in accordance 

18 with paragraph (1) shall be payable either— 

19 (A) as an amount which is paid at the 

20 same time and in the same manner as any reg21 ular compensation otherwise payable for the 

22 week involved; or 

23 (B) at the option of the State, by pay24 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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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 (h)(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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1 benefits described in subsection (h)(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 (h)(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.—The monthly 

15 equivalent of any additional compensation paid under this 

16 section shall be disregarded in considering the amount of 

17 income of an individual for any purposes under title XIX 

18 and title XXI of the Social Security Act. 

19 (i) DEFINITIONS.—For purposes of this section— 

20 (1) the terms ‘‘compensation’’, ‘‘regular com21 pensation’’, ‘‘benefit year’’, ‘‘State’’, ‘‘State agency’’, 

22 ‘‘State law’’, and ‘‘week’’ have the respective mean23 ings given such terms under section 205 of the Fed24 eral-State Extended Unemployment Compensation 

25 Act of 1970 (26 U.S.C. 3304 note); 


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1 (2) the term ‘‘emergency unemployment com2 pensation’’ means emergency unemployment com3 pensation under title IV of the Supplemental Appro4 priations Act, 2008 (Public Law 110–252; 122 Stat. 

5 2353); and 

6 (3) any reference to unemployment benefits de7 scribed in this paragraph shall be considered to refer 

8 to— 

9 (A) extended compensation (as defined by 

10 section 205 of the Federal-State Extended Un11 employment Compensation Act of 1970); and 

12 (B) unemployment compensation (as de13 fined by section 85(b) of the Internal Revenue 

14 Code of 1986) provided under any program ad15 ministered by a State under an agreement with 

16 the Secretary. 

17 SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT 

18 COMPENSATION MODERNIZATION. 

19 (a) IN GENERAL.—Section 903 of the Social Security 

20 Act (42 U.S.C. 1103) is amended by adding at the end 

21 the following: 

22 ‘‘Special Transfers in Fiscal Years 2009, 2010, and 2011 

23 for Modernization 

24 ‘‘(f)(1)(A) In addition to any other amounts, the Sec25 retary of Labor shall provide for the making of unemployVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00344 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 ment compensation modernization incentive payments 

2 (hereinafter ‘incentive payments’) to the accounts of the 

3 States in the Unemployment Trust Fund, by transfer from 

4 amounts reserved for that purpose in the Federal unem5 ployment account, in accordance with succeeding provi6 sions of this subsection. 

7 ‘‘(B) The maximum incentive payment allowable 

8 under this subsection with respect to any State shall, as 

9 determined by the Secretary of Labor, be equal to the 

10 amount obtained by multiplying $7,000,000,000 by the 

11 same ratio as would apply under subsection (a)(2)(B) for 

12 purposes of determining such State’s share of any excess 

13 amount (as described in subsection (a)(1)) that would 

14 have been subject to transfer to State accounts, as of Oc15 tober 1, 2008, under the provisions of subsection (a). 

16 ‘‘(C) Of the maximum incentive payment determined 

17 under subparagraph (B) with respect to a State— 

18 ‘‘(i) one-third shall be transferred to the ac19 count of such State upon a certification under para20 graph (4)(B) that the State law of such State meets 

21 the requirements of paragraph (2); and 

22 ‘‘(ii) the remainder shall be transferred to the 

23 account of such State upon a certification under 

24 paragraph (4)(B) that the State law of such State 

25 meets the requirements of paragraph (3). 


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1 ‘‘(2) The State law of a State meets the requirements 

2 of this paragraph if such State law— 

3 ‘‘(A) uses a base period that includes the most 

4 recently completed calendar quarter before the start 

5 of the benefit year for purposes of determining eligi6 bility for unemployment compensation; or 

7 ‘‘(B) provides that, in the case of an individual 

8 who would not otherwise be eligible for unemploy9 ment compensation under the State law because of 

10 the use of a base period that does not include the 

11 most recently completed calendar quarter before the 

12 start of the benefit year, eligibility shall be deter13 mined using a base period that includes such cal14 endar quarter. 

15 ‘‘(3) The State law of a State meets the requirements 

16 of this paragraph if such State law includes provisions to 

17 carry out at least 2 of the following subparagraphs: 

18 ‘‘(A) An individual shall not be denied regular 

19 unemployment compensation under any State law 

20 provisions relating to availability for work, active 

21 search for work, or refusal to accept work, solely be22 cause such individual is seeking only part-time work 

23 (as defined by the Secretary of Labor), except that 

24 the State law provisions carrying out this subpara25 graph may exclude an individual if a majority of the 


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1 weeks of work in such individual’s base period do 

2 not include part-time work (as so defined). 

3 ‘‘(B) An individual shall not be disqualified 

4 from regular unemployment compensation for sepa5 rating from employment if that separation is for any 

6 compelling family reason. For purposes of this sub7 paragraph, the term ‘compelling family reason’ 

8 means the following: 

9 ‘‘(i) Domestic violence, verified by such 

10 reasonable and confidential documentation as 

11 the State law may require, which causes the in12 dividual reasonably to believe that such individ13 ual’s continued employment would jeopardize 

14 the safety of the individual or of any member 

15 of the individual’s immediate family (as defined 

16 by the Secretary of Labor). 

17 ‘‘(ii) The illness or disability of a member 

18 of the individual’s immediate family (as those 

19 terms are defined by the Secretary of Labor). 

20 ‘‘(iii) The need for the individual to accom21 pany such individual’s spouse— 

22 ‘‘(I) to a place from which it is im23 practical for such individual to commute; 

24 and 


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1 ‘‘(II) due to a change in location of 

2 the spouse’s employment. 

3 ‘‘(C) Weekly unemployment compensation is 

4 payable under this subparagraph to any individual 

5 who is unemployed (as determined under the State 

6 unemployment compensation law), has exhausted all 

7 rights to regular unemployment compensation under 

8 the State law, and is enrolled and making satisfac9 tory progress in a State-approved training program 

10 or in a job training program authorized under the 

11 Workforce Investment Act of 1998. Such programs 

12 shall prepare individuals who have been separated 

13 from a declining occupation, or who have been invol14 untarily and indefinitely separated from employment 

15 as a result of a permanent reduction of operations 

16 at the individual’s place of employment, for entry 

17 into a high-demand occupation. The amount of un18 employment compensation payable under this sub19 paragraph to an individual for a week of unemploy20 ment shall be equal to the individual’s average week21 ly benefit amount (including dependents’ allowances) 

22 for the most recent benefit year, and the total 

23 amount of unemployment compensation payable 

24 under this subparagraph to any individual shall be 

25 equal to at least 26 times the individual’s average 


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1 weekly benefit amount (including dependents’ allow2 ances) for the most recent benefit year. 

3 ‘‘(D) Dependents’ allowances are provided, in 

4 the case of any individual who is entitled to receive 

5 regular unemployment compensation and who has 

6 any dependents (as defined by State law), in an 

7 amount equal to at least $15 per dependent per 

8 week, subject to any aggregate limitation on such al9 lowances which the State law may establish (but 

10 which aggregate limitation on the total allowance for 

11 dependents paid to an individual may not be less 

12 than $50 for each week of unemployment or 50 per13 cent of the individual’s weekly benefit amount for 

14 the benefit year, whichever is less). 

15 ‘‘(4)(A) Any State seeking an incentive payment 

16 under this subsection shall submit an application therefor 

17 at such time, in such manner, and complete with such in18 formation as the Secretary of Labor may within 60 days 

19 after the date of the enactment of this subsection prescribe 

20 (whether by regulation or otherwise), including informa21 tion relating to compliance with the requirements of para22 graph (2) or (3), as well as how the State intends to use 

23 the incentive payment to improve or strengthen the State’s 

24 unemployment compensation program. The Secretary of 

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1 plication, notify the State agency of the State of the Sec2 retary’s findings with respect to the requirements of para3 graph (2) or (3) (or both). 

4 ‘‘(B)(i) If the Secretary of Labor finds that the State 

5 law provisions (disregarding any State law provisions 

6 which are not then currently in effect as permanent law 

7 or which are subject to discontinuation) meet the require8 ments of paragraph (2) or (3), as the case may be, the 

9 Secretary of Labor shall thereupon make a certification 

10 to that effect to the Secretary of the Treasury, together 

11 with a certification as to the amount of the incentive pay12 ment to be transferred to the State account pursuant to 

13 that finding. The Secretary of the Treasury shall make 

14 the appropriate transfer within 7 days after receiving such 

15 certification. 

16 ‘‘(ii) For purposes of clause (i), State law provisions 

17 which are to take effect within 12 months after the date 

18 of their certification under this subparagraph shall be con19 sidered to be in effect as of the date of such certification. 

20 ‘‘(C)(i) No certification of compliance with the re21 quirements of paragraph (2) or (3) may be made with re22 spect to any State whose State law is not otherwise eligible 

23 for certification under section 303 or approvable under 

24 section 3304 of the Federal Unemployment Tax Act. 


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1 ‘‘(ii) No certification of compliance with the require2 ments of paragraph (3) may be made with respect to any 

3 State whose State law is not in compliance with the re4 quirements of paragraph (2). 

5 ‘‘(iii) No application under subparagraph (A) may be 

6 considered if submitted before the date of the enactment 

7 of this subsection or after the latest date necessary (as 

8 specified by the Secretary of Labor) to ensure that all in9 centive payments under this subsection are made before 

10 October 1, 2011. 

11 ‘‘(5)(A) Except as provided in subparagraph (B), any 

12 amount transferred to the account of a State under this 

13 subsection may be used by such State only in the payment 

14 of cash benefits to individuals with respect to their unem15 ployment (including for dependents’ allowances and for 

16 unemployment compensation under paragraph (3)(C)), ex17 clusive of expenses of administration. 

18 ‘‘(B) A State may, subject to the same conditions as 

19 set forth in subsection (c)(2) (excluding subparagraph (B) 

20 thereof, and deeming the reference to ‘subsections (a) and 

21 (b)’ in subparagraph (D) thereof to include this sub22 section), use any amount transferred to the account of 

23 such State under this subsection for the administration 

24 of its unemployment compensation law and public employ25 ment offices. 


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1 ‘‘(6) Out of any money in the Federal unemployment 

2 account not otherwise appropriated, the Secretary of the 

3 Treasury shall reserve $7,000,000,000 for incentive pay4 ments under this subsection. Any amount so reserved shall 

5 not be taken into account for purposes of any determina6 tion under section 902, 910, or 1203 of the amount in 

7 the Federal unemployment account as of any given time. 

8 Any amount so reserved for which the Secretary of the 

9 Treasury has not received a certification under paragraph 

10 (4)(B) by the deadline described in paragraph (4)(C)(iii) 

11 shall, upon the close of fiscal year 2011, become unre12 stricted as to use as part of the Federal unemployment 

13 account. 

14 ‘‘(7) For purposes of this subsection, the terms ‘ben15 efit year’, ‘base period’, and ‘week’ have the respective 

16 meanings given such terms under section 205 of the Fed17 eral-State Extended Unemployment Compensation Act of 

18 1970 (26 U.S.C. 3304 note). 

19 ‘‘Special Transfer in Fiscal Year 2009 for Administration 

20 ‘‘(g)(1) In addition to any other amounts, the Sec21 retary of the Treasury shall transfer from the employment 

22 security administration account to the account of each 

23 State in the Unemployment Trust Fund, within 30 days 

24 after the date of the enactment of this subsection, the 


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1 amount determined with respect to such State under para2 graph (2). 

3 ‘‘(2) The amount to be transferred under this sub4 section to a State account shall (as determined by the Sec5 retary of Labor and certified by such Secretary to the Sec6 retary of the Treasury) be equal to the amount obtained 

7 by multiplying $500,000,000 by the same ratio as deter8 mined under subsection (f)(1)(B) with respect to such 

9 State. 

10 ‘‘(3) Any amount transferred to the account of a 

11 State as a result of the enactment of this subsection may 

12 be used by the State agency of such State only in the pay13 ment of expenses incurred by it for— 

14 ‘‘(A) the administration of the provisions of its 

15 State law carrying out the purposes of subsection 

16 (f)(2) or any subparagraph of subsection (f)(3); 

17 ‘‘(B) improved outreach to individuals who 

18 might be eligible for regular unemployment com19 pensation by virtue of any provisions of the State 

20 law which are described in subparagraph (A); 

21 ‘‘(C) the improvement of unemployment benefit 

22 and unemployment tax operations, including re23 sponding to increased demand for unemployment 

24 compensation; and 


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1 ‘‘(D) staff-assisted reemployment services for 

2 unemployment compensation claimants.’’. 

3 (b) REGULATIONS.—The Secretary of Labor may 

4 prescribe any regulations, operating instructions, or other 

5 guidance necessary to carry out the amendment made by 

6 subsection (a). 

7 Subtitle B—Assistance for 

8 Vulnerable Individuals 

9 SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM. 

10 (a) IN GENERAL.—Section 403 of the Social Security 

11 Act (42 U.S.C. 603) is amended by adding at the end the 

12 following: 

13 ‘‘(c) EMERGENCY FUND.— 

14 ‘‘(1) ESTABLISHMENT.—There is established in 

15 the Treasury of the United States a fund which 

16 shall be known as the ‘Emergency Contingency 

17 Fund for State Temporary Assistance for Needy 

18 Families Programs’ (in this subsection referred to as 

19 the ‘Emergency Fund’). 

20 ‘‘(2) DEPOSITS INTO FUND.—Out of any money 

21 in the Treasury of the United States not otherwise 

22 appropriated, there are appropriated such sums as 

23 are necessary for payment to the Emergency Fund. 

24 ‘‘(3) GRANTS.— 


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1 ‘‘(A) GRANT RELATED TO CASELOAD IN2 CREASES.— 

3 ‘‘(i) IN GENERAL.—For each calendar 

4 quarter in fiscal year 2009 or 2010, the 

5 Secretary shall make a grant from the 

6 Emergency Fund to each State that— 

7 ‘‘(I) requests a grant under this 

8 subparagraph for the quarter; and 

9 ‘‘(II) meets the requirement of 

10 clause (ii) for the quarter. 

11 ‘‘(ii) CASELOAD INCREASE REQUIRE12 MENT.—A State meets the requirement of 

13 this clause for a quarter if the average 

14 monthly assistance caseload of the State 

15 for the quarter exceeds the average month16 ly assistance caseload of the State for the 

17 corresponding quarter in the emergency 

18 fund base year of the State. 

19 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

20 paragraph (5), the amount of the grant to 

21 be made to a State under this subpara22 graph for a quarter shall be 80 percent of 

23 the amount (if any) by which the total ex24 penditures of the State for basic assistance 

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1 ter, whether under the State program 

2 funded under this part or as qualified 

3 State expenditures, exceeds the total ex4 penditures of the State for such assistance 

5 for the corresponding quarter in the emer6 gency fund base year of the State. 

7 ‘‘(B) GRANT RELATED TO INCREASED EX8 PENDITURES FOR NON-RECURRENT SHORT

9 TERM BENEFITS.— 

10 ‘‘(i) IN GENERAL.—For each calendar 

11 quarter in fiscal year 2009 or 2010, the 

12 Secretary shall make a grant from the 

13 Emergency Fund to each State that— 

14 ‘‘(I) requests a grant under this 

15 subparagraph for the quarter; and 

16 ‘‘(II) meets the requirement of 

17 clause (ii) for the quarter. 

18 ‘‘(ii) NON-RECURRENT SHORT TERM

19 EXPENDITURE REQUIREMENT.—A State 

20 meets the requirement of this clause for a 

21 quarter if the total expenditures of the 

22 State for non-recurrent short term benefits 

23 in the quarter, whether under the State 

24 program funded under this part or as 

25 qualified State expenditures, exceeds the 


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1 total such expenditures of the State for 

2 non-recurrent short term benefits in the 

3 corresponding quarter in the emergency 

4 fund base year of the State. 

5 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

6 paragraph (5), the amount of the grant to 

7 be made to a State under this subpara8 graph for a quarter shall be an amount 

9 equal to 80 percent of the excess described 

10 in clause (ii). 

11 ‘‘(C) GRANT RELATED TO INCREASED EX12 PENDITURES FOR SUBSIDIZED EMPLOYMENT.— 

13 ‘‘(i) IN GENERAL.—For each calendar 

14 quarter in fiscal year 2009 or 2010, the 

15 Secretary shall make a grant from the 

16 Emergency Fund to each State that— 

17 ‘‘(I) requests a grant under this 

18 subparagraph for the quarter; and 

19 ‘‘(II) meets the requirement of 

20 clause (ii) for the quarter. 

21 ‘‘(ii) SUBSIDIZED EMPLOYMENT EX22 PENDITURE REQUIREMENT.—A State 

23 meets the requirement of this clause for a 

24 quarter if the total expenditures of the 

25 State for subsidized employment in the 


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1 quarter, whether under the State program 

2 funded under this part or as qualified 

3 State expenditures, exceeds the total of 

4 such expenditures of the State in the cor5 responding quarter in the emergency fund 

6 base year of the State. 

7 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

8 paragraph (5), the amount of the grant to 

9 be made to a State under this subpara10 graph for a quarter shall be an amount 

11 equal to 80 percent of the excess described 

12 in clause (ii). 

13 ‘‘(4) AUTHORITY TO MAKE NECESSARY ADJUST14 MENTS TO DATA AND COLLECT NEEDED DATA.—In 

15 determining the size of the caseload of a State and 

16 the expenditures of a State for basic assistance, non17 recurrent short-term benefits, and subsidized em18 ployment, during any period for which the State re19 quests funds under this subsection, and during the 

20 emergency fund base year of the State, the Sec21 retary may make appropriate adjustments to the 

22 data to ensure that the data reflect expenditures 

23 under the State program funded under this part and 

24 qualified State expenditures. The Secretary may de25 velop a mechanism for collecting expenditure data, 


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1 including procedures which allow States to make 

2 reasonable estimates, and may set deadlines for 

3 making revisions to the data. 

4 ‘‘(5) LIMITATION.—The total amount payable 

5 to a single State under subsection (b) and this sub6 section for a fiscal year shall not exceed 25 percent 

7 of the State family assistance grant. 

8 ‘‘(6) LIMITATIONS ON USE OF FUNDS.—A State 

9 to which an amount is paid under this subsection 

10 may use the amount only as authorized by section 

11 404. 

12 ‘‘(7) TIMING OF IMPLEMENTATION.—The Sec13 retary shall implement this subsection as quickly as 

14 reasonably possible, pursuant to appropriate guid15 ance to States. 

16 ‘‘(8) DEFINITIONS.—In this subsection: 

17 ‘‘(A) AVERAGE MONTHLY ASSISTANCE

18 CASELOAD.—The term ‘average monthly assist19 ance caseload’ means, with respect to a State 

20 and a quarter, the number of families receiving 

21 assistance during the quarter under the State 

22 program funded under this part or as qualified 

23 State expenditures, subject to adjustment under 

24 paragraph (4). 

25 ‘‘(B) EMERGENCY FUND BASE YEAR.— 


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1 ‘‘(i) IN GENERAL.—The term ‘emer2 gency fund base year’ means, with respect 

3 to a State and a category described in 

4 clause (ii), whichever of fiscal year 2007 or 

5 2008 is the fiscal year in which the 

6 amount described by the category with re7 spect to the State is the lesser. 

8 ‘‘(ii) CATEGORIES DESCRIBED.—The 

9 categories described in this clause are the 

10 following: 

11 ‘‘(I) The average monthly assist12 ance caseload of the State. 

13 ‘‘(II) The total expenditures of 

14 the State for non-recurrent short term 

15 benefits, whether under the State pro16 gram funded under this part or as 

17 qualified State expenditures. 

18 ‘‘(III) The total expenditures of 

19 the State for subsidized employment, 

20 whether under the State program 

21 funded under this part or as qualified 

22 State expenditures. 

23 ‘‘(C) QUALIFIED STATE EXPENDITURES.— 

24 The term ‘qualified State expenditures’ has the 

25 meaning given the term in section 409(a)(7).’’. 


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1 (b) TEMPORARY MODIFICATION OF CASELOAD RE2 DUCTION CREDIT.—Section 407(b)(3)(A)(i) of such Act 

3 (42 U.S.C. 607(b)(3)(A)(i)) is amended by inserting ‘‘(or 

4 if the immediately preceding fiscal year is fiscal year 2009 

5 or 2010, then, at State option, during the emergency fund 

6 base year of the State with respect to the average monthly 

7 assistance caseload of the State (within the meaning of 

8 section 403(c)(8)(B)))’’ before ‘‘under the State’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall take effect on the date of the enactment 

11 of this Act. 

12 SEC. 2102. ONE-TIME EMERGENCY PAYMENT TO SSI RECIPI13 ENTS. 

14 (a) PAYMENT AUTHORITY.— 

15 (1) IN GENERAL.—At the earliest practicable 

16 date in calendar year 2009 but not later than 120 

17 days after the date of the enactment of this section, 

18 the Commissioner of Social Security shall make a 

19 one-time payment to each individual who is deter20 mined by the Commissioner in calendar year 2009 to 

21 be an individual who— 

22 (A) is entitled to a cash benefit under the 

23 supplemental security income program under 

24 title XVI of the Social Security Act (other than 

25 pursuant to section 1611(e)(1)(B) of such Act) 


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1 for at least 1 day in the calendar month in 

2 which the first payment under this section is to 

3 be made; or 

4 (B)(i) was entitled to such a cash benefit 

5 (other than pursuant to section 1611(e)(1)(B) 

6 of such Act) for at least 1 day in the 2-month 

7 period preceding that calendar month; and 

8 (ii) whose entitlement to that benefit 

9 ceased in that 2-month period solely because 

10 the income of the individual (and the income of 

11 the spouse, if any, of the individual) exceeded 

12 the applicable income limit described in para13 graph (1)(A) or (2)(A) of section 1611(a) of 

14 such Act. 

15 (2) AMOUNT OF PAYMENT.—Subject to sub16 section (b)(1) of this section, the amount of the pay17 ment shall be— 

18 (A) in the case of an individual eligible for 

19 a payment under this section who does not have 

20 a spouse eligible for such a payment, an 

21 amount equal to the average of the cash bene22 fits payable in the aggregate under section 

23 1611 or 1619(a) of the Social Security Act to 

24 eligible individuals who do not have an eligible 

25 spouse, for the most recent month for which 


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1 data on payment of the benefits are available, 

2 as determined by the Commissioner of Social 

3 Security; or 

4 (B) in the case of an individual eligible for 

5 a payment under this section who has a spouse 

6 eligible for such a payment, an amount equal to 

7 the average of the cash benefits payable in the 

8 aggregate under section 1611 or 1619(a) of the 

9 Social Security Act to eligible individuals who 

10 have an eligible spouse, for the most recent 

11 month for which data on payment of the bene12 fits are available, as so determined. 

13 (b) ADMINISTRATIVE PROVISIONS.— 

14 (1) AUTHORITY TO WITHHOLD PAYMENT TO

15 RECOVER PRIOR OVERPAYMENT OF SSI BENEFITS.— 

16 The Commissioner of Social Security may withhold 

17 part or all of a payment otherwise required to be 

18 made under subsection (a) of this section to an indi19 vidual, in order to recover a prior overpayment of 

20 benefits to the individual under the supplemental se21 curity income program under title XVI of the Social 

22 Security Act, subject to the limitations of section 

23 1631(b) of such Act. 

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1 GRAM.—A payment under subsection (a) shall be 

2 disregarded in determining whether there has been 

3 an underpayment of benefits under the supplemental 

4 security income program under title XVI of the So5 cial Security Act. 

6 (3) NONASSIGNMENT.—The provisions of sec7 tion 1631(d) of the Social Security Act shall apply 

8 with respect to payments under this section to the 

9 same extent as they apply in the case of title XVI 

10 of such Act. 

11 (c) PAYMENTS TO BE DISREGARDED FOR PURPOSES

12 OF ALL FEDERAL AND FEDERALLY ASSISTED PRO13 GRAMS.—A payment under subsection (a) shall not be re14 garded as income to the recipient, and shall not be re15 garded as a resource of the recipient for the month of re16 ceipt and the following 6 months, for purposes of deter17 mining the eligibility of any individual for benefits or as18 sistance, or the amount or extent of benefits or assistance, 

19 under any Federal program or under any State or local 

20 program financed in whole or in part with Federal funds. 

21 (d) APPROPRIATION.—Out of any sums in the Treas22 ury of the United States not otherwise appropriated, there 

23 are appropriated such sums as may be necessary to carry 

24 out this section. 


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1 SEC. 2103. TEMPORARY RESUMPTION OF PRIOR CHILD 

2 SUPPORT LAW. 

3 During the period that begins with October 1, 2008, 

4 and ends with September 30, 2010, section 455(a)(1) of 

5 the Social Security Act shall be applied and administered 

6 as if the phrase ‘‘from amounts paid to the State under 

7 section 458 or’’ did not appear in such section. 

8 TITLE III—HEALTH INSURANCE 

9 ASSISTANCE FOR THE UNEM10 PLOYED 

11 SEC. 3001. SHORT TITLE AND TABLE OF CONTENTS OF 

12 TITLE. 

13 (a) SHORT TITLE OF TITLE.—This title may be cited 

14 as the ‘‘Health Insurance Assistance for the Unemployed 

15 Act of 2009’’. 

16 (b) TABLE OF CONTENTS OF TITLE.—The table of 

17 contents of this title is as follows: 

Sec. 3001. Short title and table of contents of title. 

Sec. 3002. Premium assistance for COBRA benefits and extension of COBRA 

benefits for older or long-term employees. 

Sec. 3003. Temporary optional Medicaid coverage for the unemployed. 

18 SEC. 3002. PREMIUM ASSISTANCE FOR COBRA BENEFITS 

19 AND EXTENSION OF COBRA BENEFITS FOR 

20 OLDER OR LONG-TERM EMPLOYEES. 

21 (a) PREMIUM ASSISTANCE FOR COBRA CONTINU22 ATION COVERAGE FOR INDIVIDUALS AND THEIR FAMI23 LIES.— 


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1 (1) PROVISION OF PREMIUM ASSISTANCE.— 

2 (A) REDUCTION OF PREMIUMS PAY3 ABLE.—In the case of any premium for a pe4 riod of coverage beginning on or after the date 

5 of the enactment of this Act for COBRA con6 tinuation coverage with respect to any assist7 ance eligible individual, such individual shall be 

8 treated for purposes of any COBRA continu9 ation provision as having paid the amount of 

10 such premium if such individual pays 35 per11 cent of the amount of such premium (as deter12 mined without regard to this subsection). 

13 (B) PREMIUM REIMBURSEMENT.—For pro14 visions providing the balance of such premium, 

15 see section 6431 of the Internal Revenue Code 

16 of 1986, as added by paragraph (12). 

17 (2) LIMITATION OF PERIOD OF PREMIUM AS18 SISTANCE.— 

19 (A) IN GENERAL.—Paragraph (1)(A) shall 

20 not apply with respect to any assistance eligible 

21 individual for months of coverage beginning on 

22 or after the earlier of— 

23 (i) the first date that such individual 

24 is eligible for coverage under any other 

25 group health plan (other than coverage 


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1 consisting of only dental, vision, coun2 seling, or referral services (or a combina3 tion thereof), coverage under a health re4 imbursement arrangement or a health 

5 flexible spending arrangement, or coverage 

6 of treatment that is furnished in an on-site 

7 medical facility maintained by the em8 ployer and that consists primarily of first9 aid services, prevention and wellness care, 

10 or similar care (or a combination thereof)) 

11 or is eligible for benefits under title XVIII 

12 of the Social Security Act, or 

13 (ii) the earliest of— 

14 (I) the date which is 12 months 

15 after the first day of the first month 

16 that paragraph (1)(A) applies with re17 spect to such individual, 

18 (II) the date following the expira19 tion of the maximum period of con20 tinuation coverage required under the 

21 applicable COBRA continuation cov22 erage provision, or 

23 (III) the date following the expi24 ration of the period of continuation 


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1 coverage allowed under paragraph 

2 (4)(B)(ii). 

3 (B) TIMING OF ELIGIBILITY FOR ADDI4 TIONAL COVERAGE.—For purposes of subpara5 graph (A)(i), an individual shall not be treated 

6 as eligible for coverage under a group health 

7 plan before the first date on which such indi8 vidual could be covered under such plan. 

9 (C) NOTIFICATION REQUIREMENT.—An 

10 assistance eligible individual shall notify in writ11 ing the group health plan with respect to which 

12 paragraph (1)(A) applies if such paragraph 

13 ceases to apply by reason of subparagraph 

14 (A)(i). Such notice shall be provided to the 

15 group health plan in such time and manner as 

16 may be specified by the Secretary of Labor. 

17 (3) ASSISTANCE ELIGIBLE INDIVIDUAL.—For 

18 purposes of this section, the term ‘‘assistance eligible 

19 individual’’ means any qualified beneficiary if— 

20 (A) at any time during the period that be21 gins with September 1, 2008, and ends with 

22 December 31, 2009, such qualified beneficiary 

23 is eligible for COBRA continuation coverage, 

24 (B) such qualified beneficiary elects such 

25 coverage, and 


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1 (C) the qualifying event with respect to the 

2 COBRA continuation coverage consists of the 

3 involuntary termination of the covered employ4 ee’s employment and occurred during such pe5 riod. 

6 (4) EXTENSION OF ELECTION PERIOD AND EF7 FECT ON COVERAGE.— 

8 (A) IN GENERAL.—Notwithstanding sec9 tion 605(a) of the Employee Retirement Income 

10 Security Act of 1974, section 4980B(f)(5)(A) of 

11 the Internal Revenue Code of 1986, section 

12 2205(a) of the Public Health Service Act, and 

13 section 8905a(c)(2) of title 5, United States 

14 Code, in the case of an individual who is a 

15 qualified beneficiary described in paragraph 

16 (3)(A) as of the date of the enactment of this 

17 Act and has not made the election referred to 

18 in paragraph (3)(B) as of such date, such indi19 vidual may elect the COBRA continuation cov20 erage under the COBRA continuation coverage 

21 provisions containing such sections during the 

22 60-day period commencing with the date on 

23 which the notification required under paragraph 

24 (7)(C) is provided to such individual. 


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1 (B) COMMENCEMENT OF COVERAGE; NO

2 REACH-BACK.—Any COBRA continuation cov3 erage elected by a qualified beneficiary during 

4 an extended election period under subparagraph 

5 (A)— 

6 (i) shall commence on the date of the 

7 enactment of this Act, and 

8 (ii) shall not extend beyond the period 

9 of COBRA continuation coverage that 

10 would have been required under the appli11 cable COBRA continuation coverage provi12 sion if the coverage had been elected as re13 quired under such provision. 

14 (C) PREEXISTING CONDITIONS.—With re15 spect to a qualified beneficiary who elects 

16 COBRA continuation coverage pursuant to sub17 paragraph (A), the period— 

18 (i) beginning on the date of the quali19 fying event, and 

20 (ii) ending with the day before the 

21 date of the enactment of this Act, 

22 shall be disregarded for purposes of deter23 mining the 63-day periods referred to in section 

24 701)(2) of the Employee Retirement Income 

25 Security Act of 1974, section 9801(c)(2) of the 


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1 Internal Revenue Code of 1986, and section 

2 2701(c)(2) of the Public Health Service Act. 

3 (5) EXPEDITED REVIEW OF DENIALS OF PRE4 MIUM ASSISTANCE.—In any case in which an indi5 vidual requests treatment as an assistance eligible 

6 individual and is denied such treatment by the group 

7 health plan by reason of such individual’s ineligi8 bility for COBRA continuation coverage, the Sec9 retary of Labor (or the Secretary of Health and 

10 Human services in connection with COBRA continu11 ation coverage which is provided other than pursu12 ant to part 6 of subtitle B of title I of the Employee 

13 Retirement Income Security Act of 1974), in con14 sultation with the Secretary of the Treasury, shall 

15 provide for expedited review of such denial. An indi16 vidual shall be entitled to such review upon applica17 tion to such Secretary in such form and manner as 

18 shall be provided by such Secretary. Such Secretary 

19 shall make a determination regarding such individ20 ual’s eligibility within 10 business days after receipt 

21 of such individual’s application for review under this 

22 paragraph. 

23 (6) DISREGARD OF SUBSIDIES FOR PURPOSES

24 OF FEDERAL AND STATE PROGRAMS.—Notwith25 standing any other provision of law, any premium 


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1 reduction with respect to an assistance eligible indi2 vidual under this subsection shall not be considered 

3 income or resources in determining eligibility for, or 

4 the amount of assistance or benefits provided under, 

5 any other public benefit provided under Federal law 

6 or the law of any State or political subdivision there7 of. 

8 (7) NOTICES TO INDIVIDUALS.— 

9 (A) GENERAL NOTICE.— 

10 (i) IN GENERAL.—In the case of no11 tices provided under section 606(4) of the 

12 Employee Retirement Income Security Act 

13 of 1974 (29 U.S.C. 1166(4)), section 

14 4980B(f)(6)(D) of the Internal Revenue 

15 Code of 1986, section 2206(4) of the Pub16 lic Health Service Act (42 U.S.C. 300bb17 6(4)), or section 8905a(f)(2)(A) of title 5, 

18 United States Code, with respect to indi19 viduals who, during the period described in 

20 paragraph (3)(A), become entitled to elect 

21 COBRA continuation coverage, such no22 tices shall include an additional notifica23 tion to the recipient of the availability of 

24 premium reduction with respect to such 

25 coverage under this subsection. 


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1 (ii) ALTERNATIVE NOTICE.—In the 

2 case of COBRA continuation coverage to 

3 which the notice provision under such sec4 tions does not apply, the Secretary of 

5 Labor, in consultation with the Secretary 

6 of the Treasury and the Secretary of 

7 Health and Human Services, shall, in co8 ordination with administrators of the 

9 group health plans (or other entities) that 

10 provide or administer the COBRA continu11 ation coverage involved, provide rules re12 quiring the provision of such notice. 

13 (iii) FORM.—The requirement of the 

14 additional notification under this subpara15 graph may be met by amendment of exist16 ing notice forms or by inclusion of a sepa17 rate document with the notice otherwise 

18 required. 

19 (B) SPECIFIC REQUIREMENTS.—Each ad20 ditional notification under subparagraph (A) 

21 shall include— 

22 (i) the forms necessary for estab23 lishing eligibility for premium reduction 

24 under this subsection, 


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1 (ii) the name, address, and telephone 

2 number necessary to contact the plan ad3 ministrator and any other person main4 taining relevant information in connection 

5 with such premium reduction, 

6 (iii) a description of the extended elec7 tion period provided for in paragraph 

8 (4)(A), 

9 (iv) a description of the obligation of 

10 the qualified beneficiary under paragraph 

11 (2)(C) to notify the plan providing continu12 ation coverage of eligibility for subsequent 

13 coverage under another group health plan 

14 or eligibility for benefits under title XVIII 

15 of the Social Security Act and the penalty 

16 provided for failure to so notify the plan, 

17 and 

18 (v) a description, displayed in a 

19 prominent manner, of the qualified bene20 ficiary’s right to a reduced premium and 

21 any conditions on entitlement to the re22 duced premium. 

23 (C) NOTICE RELATING TO RETROACTIVE

24 COVERAGE.—In the case of an individual de25 scribed in paragraph (3)(A) who has elected 


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1 COBRA continuation coverage as of the date of 

2 enactment of this Act or an individual described 

3 in paragraph (4)(A), the administrator of the 

4 group health plan (or other entity) involved 

5 shall provide (within 60 days after the date of 

6 enactment of this Act) for the additional notifi7 cation required to be provided under subpara8 graph (A). 

9 (D) MODEL NOTICES.—Not later than 30 

10 days after the date of enactment of this Act, 

11 the Secretary of the Labor, in consultation with 

12 the Secretary of the Treasury and the Secretary 

13 of Health and Human Services, shall prescribe 

14 models for the additional notification required 

15 under this paragraph. 

16 (8) SAFEGUARDS.—The Secretary of the Treas17 ury shall provide such rules, procedures, regulations, 

18 and other guidance as may be necessary and appro19 priate to prevent fraud and abuse under this sub20 section. 

21 (9) OUTREACH.—The Secretary of Labor, in 

22 consultation with the Secretary of the Treasury and 

23 the Secretary of Health and Human Services, shall 

24 provide outreach consisting of public education and 

25 enrollment assistance relating to premium reduction 


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1 provided under this subsection. Such outreach shall 

2 target employers, group health plan administrators, 

3 public assistance programs, States, insurers, and 

4 other entities as determined appropriate by such 

5 Secretaries. Such outreach shall include an initial 

6 focus on those individuals electing continuation cov7 erage who are referred to in paragraph (7)(C). In8 formation on such premium reduction, including en9 rollment, shall also be made available on website of 

10 the Departments of Labor, Treasury, and Health 

11 and Human Services. 

12 (10) DEFINITIONS.—For purposes of this sub13 section— 

14 (A) ADMINISTRATOR.—The term ‘‘admin15 istrator’’ has the meaning given such term in 

16 section 3(16) of the Employee Retirement In17 come Security Act of 1974. 

18 (B) COBRA CONTINUATION COVERAGE.— 

19 The term ‘‘COBRA continuation coverage’’ 

20 means continuation coverage provided pursuant 

21 to part 6 of subtitle B of title I of the Em22 ployee Retirement Income Security Act of 1974 

23 (other than under section 609), title XXII of 

24 the Public Health Service Act, section 4980B of 

25 the Internal Revenue Code of 1986 (other than 


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1 subsection (f)(1) of such section insofar as it 

2 relates to pediatric vaccines), or section 8905a 

3 of title 5, United States Code, or under a State 

4 program that provides continuation coverage 

5 comparable to such continuation coverage. Such 

6 term does not include coverage under a health 

7 flexible spending arrangement. 

8 (C) COBRA CONTINUATION PROVISION.— 

9 The term ‘‘COBRA continuation provision’’ 

10 means the provisions of law described in sub11 paragraph (B). 

12 (D) COVERED EMPLOYEE.—The term 

13 ‘‘covered employee’’ has the meaning given such 

14 term in section 607(2) of the Employee Retire15 ment Income Security Act of 1974. 

16 (E) QUALIFIED BENEFICIARY.—The term 

17 ‘‘qualified beneficiary’’ has the meaning given 

18 such term in section 607(3) of the Employee 

19 Retirement Income Security Act of 1974. 

20 (F) GROUP HEALTH PLAN.—The term 

21 ‘‘group health plan’’ has the meaning given 

22 such term in section 607(1) of the Employee 

23 Retirement Income Security Act of 1974. 

24 (G) STATE.—The term ‘‘State’’ includes 

25 the District of Columbia, the Commonwealth of 


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1 Puerto Rico, the Virgin Islands, Guam, Amer2 ican Samoa, and the Commonwealth of the 

3 Northern Mariana Islands. 

4 (11) REPORTS.— 

5 (A) INTERIM REPORT.—The Secretary of 

6 the Treasury shall submit an interim report to 

7 the Committee on Education and Labor, the 

8 Committee on Ways and Means, and the Com9 mittee on Energy and Commerce of the House 

10 of Representatives and the Committee on 

11 Health, Education, Labor, and Pensions and 

12 the Committee on Finance of the Senate re13 garding the premium reduction provided under 

14 this subsection that includes— 

15 (i) the number of individuals provided 

16 such assistance as of the date of the re17 port; and 

18 (ii) the total amount of expenditures 

19 incurred (with administrative expenditures 

20 noted separately) in connection with such 

21 assistance as of the date of the report. 

22 (B) FINAL REPORT.—As soon as prac23 ticable after the last period of COBRA continu24 ation coverage for which premium reduction is 

25 provided under this section, the Secretary of the 


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1 Treasury shall submit a final report to each 

2 Committee referred to in subparagraph (A) that 

3 includes— 

4 (i) the number of individuals provided 

5 premium reduction under this section; 

6 (ii) the average dollar amount 

7 (monthly and annually) of premium reduc8 tions provided to such individuals; and 

9 (iii) the total amount of expenditures 

10 incurred (with administrative expenditures 

11 noted separately) in connection with pre12 mium reduction under this section. 

13 (12) COBRA PREMIUM ASSISTANCE.— 

14 (A) IN GENERAL.—Subchapter B of chap15 ter 65 of the Internal Revenue Code of 1986 is 

16 amended by adding at the end the following 

17 new section: 

18 ‘‘SEC. 6431. COBRA PREMIUM ASSISTANCE. 

19 ‘‘(a) IN GENERAL.—The entity to whom premiums 

20 are payable under COBRA continuation coverage shall be 

21 reimbursed for the amount of premiums not paid by plan 

22 beneficiaries by reason of section 3002(a) of the Health 

23 Insurance Assistance for the Unemployed Act of 2009. 

24 Such amount shall be treated as a credit against the re25 quirement of such entity to make deposits of payroll taxes 


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1 and the liability of such entity for payroll taxes. To the 

2 extent that such amount exceeds the amount of such 

3 taxes, the Secretary shall pay to such entity the amount 

4 of such excess. No payment may be made under this sub5 section to an entity with respect to any assistance eligible 

6 individual until after such entity has received the reduced 

7 premium from such individual required under section 

8 3002(a)(1)(A) of such Act. 

9 ‘‘(b) PAYROLL TAXES.—For purposes of this section, 

10 the term ‘payroll taxes’ means— 

11 ‘‘(1) amounts required to be deducted and with12 held for the payroll period under section 3401 (relat13 ing to wage withholding), 

14 ‘‘(2) amounts required to be deducted for the 

15 payroll period under section 3102 (relating to FICA 

16 employee taxes), and 

17 ‘‘(3) amounts of the taxes imposed for the pay18 roll period under section 3111 (relating to FICA em19 ployer taxes). 

20 ‘‘(c) TREATMENT OF CREDIT.—Except as otherwise 

21 provided by the Secretary, the credit described in sub22 section (a) shall be applied as though the employer had 

23 paid to the Secretary, on the day that the qualified bene24 ficiary’s premium payment is received, an amount equal 

25 to such credit. 


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1 ‘‘(d) TREATMENT OF PAYMENT.—For purposes of 

2 section 1324(b)(2) of title 31, United States Code, any 

3 payment under this section shall be treated in the same 

4 manner as a refund of the credit under section 35. 

5 ‘‘(e) REPORTING.— 

6 ‘‘(1) IN GENERAL.—Each entity entitled to re7 imbursement under subsection (a) for any period 

8 shall submit such reports as the Secretary may re9 quire, including— 

10 ‘‘(A) an attestation of involuntary termi11 nation of employment for each covered em12 ployee on the basis of whose termination entitle13 ment to reimbursement is claimed under sub14 section (a), and 

15 ‘‘(B) a report of the amount of payroll 

16 taxes offset under subsection (a) for the report17 ing period and the estimated offsets of such 

18 taxes for the subsequent reporting period in 

19 connection with reimbursements under sub20 section (a). 

21 ‘‘(2) TIMING OF REPORTS RELATING TO

22 AMOUNT OF PAYROLL TAXES.—Reports required 

23 under paragraph (1)(B) shall be submitted at the 

24 same time as deposits of taxes imposed by chapters 


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1 21, 22, and 24 or at such time as is specified by the 

2 Secretary. 

3 ‘‘(f) REGULATIONS.—The Secretary may issue such 

4 regulations or other guidance as may be necessary or ap5 propriate to carry out this section, including the require6 ment to report information or the establishment of other 

7 methods for verifying the correct amounts of payments 

8 and credits under this section. The Secretary shall issue 

9 such regulations or guidance with respect to the applica10 tion of this section to group health plans that are multiem11 ployer plans (as defined in section 3(37) of the Employee 

12 Retirement Income Security Act of 1974).’’. 

13 (B) SOCIAL SECURITY TRUST FUNDS HELD

14 HARMLESS.—In determining any amount trans15 ferred or appropriated to any fund under the 

16 Social Security Act, section 6431 of the Inter17 nal Revenue Code of 1986 shall not be taken 

18 into account. 

19 (C) CLERICAL AMENDMENT.—The table of 

20 sections for subchapter B of chapter 65 of the 

21 Internal Revenue Code of 1986 is amended by 

22 adding at the end the following new item: 

‘‘Sec. 6431. COBRA premium assistance.’’. 

23 (D) EFFECTIVE DATE.—The amendments 

24 made by this paragraph shall apply to pre25 miums to which subsection (a)(1)(A) applies. 


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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 3002(a)(2)(C)) of the 

13 Health Insurance Assistance for the Unemployed Act of 

14 2009 who fails to make such a notification at such time 

15 and in such manner as the Secretary of Labor may require 

16 shall pay a penalty of 110 percent of the premium reduc17 tion provided under such section after termination of eligi18 bility 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 3002(a) of the Health Insurance 

17 Assistance for the Unemployed Act of 2009 for any 

18 month during the taxable year, such individual shall 

19 not be treated as an eligible individual, a certified 

20 individual, or a qualifying family member for pur21 poses of this section or section 7527 with respect to 

22 such 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 3002 of the Health Insurance Assist12 ance for the Unemployed Act of 2009), gross income does 

13 not include any premium reduction provided under sub14 section (a) of 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. 

24 (b) EXTENSION OF COBRA BENEFITS FOR OLDER

25 OR LONG-TERM EMPLOYEES.— 


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1 (1) ERISA AMENDMENT.—Section 602(2)(A) 

2 of the Employee Retirement Income Security Act of 

3 1974 is amended by adding at the end the following 

4 new clauses: 

5 ‘‘(x) SPECIAL RULE FOR OLDER OR

6 LONG-TERM EMPLOYEES GENERALLY.—In 

7 the case of a qualifying event described in 

8 section 603(2) with respect to a covered 

9 employee who (as of such qualifying event) 

10 has attained age 55 or has completed 10 

11 or more years of service with the entity 

12 that is the employer at the time of the 

13 qualifying event, clauses (i) and (ii) shall 

14 not apply. For purposes of this clause, in 

15 the case of a group health plan that is a 

16 multiemployer plan, service by the covered 

17 employee performed for 2 or more employ18 ers during periods for which such employ19 ers contributed to such plan shall be treat20 ed as service performed for the entity re21 ferred to in the preceding sentence. 

22 ‘‘(xi) YEAR OF SERVICE.— For pur23 poses of this subparagraph, the term ‘year 

24 of service’ shall have the meaning provided 

25 in section 202(a)(3).’’. 


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1 (2) IRC AMENDMENT.—Clause (i) of section 

2 4980B(f)(2)(B) of the Internal Revenue Code of 

3 1986 is amended by adding at the end the following 

4 new subclauses: 

5 ‘‘(X) SPECIAL RULE FOR OLDER

6 OR LONG-TERM EMPLOYEES GEN7 ERALLY.—In the case of a qualifying 

8 event described in paragraph (3)(B) 

9 with respect to a covered employee 

10 who (as of such qualifying event) has 

11 attained age 55 or has completed 10 

12 or more years of service with the enti13 ty that is the employer at the time of 

14 the qualifying event, subclauses (I) 

15 and (II) shall not apply. For purposes 

16 of this subclause, in the case of a 

17 group health plan that is a multiem18 ployer plan (as defined in section 

19 3(37) of the Employee Retirement In20 come Security Act of 1974), service by 

21 the covered employee performed for 2 

22 or more employers during periods for 

23 which such employers contributed to 

24 such plan shall be treated as service 


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1 performed for the entity referred to in 

2 the preceding sentence. 

3 ‘‘(XI) YEAR OF SERVICE.— For 

4 purposes of this clause, the term ‘year 

5 of service’ shall have the meaning pro6 vided in section 202(a)(3) of the Em7 ployee Retirement Income Security 

8 Act of 1974.’’. 

9 (3) PHSA AMENDMENT.—Section 2202(2)(A) 

10 of the Public Health Service Act is amended by add11 ing at the end the following new clauses: 

12 ‘‘(viii) SPECIAL RULE FOR OLDER OR

13 LONG-TERM EMPLOYEES GENERALLY.—In 

14 the case of a qualifying event described in 

15 section 2203(2) with respect to a covered 

16 employee who (as of such qualifying event) 

17 has attained age 55 or has completed 10 

18 or more years of service with the entity 

19 that is the employer at the time of the 

20 qualifying event, clauses (i) and (ii) shall 

21 not apply. For purposes of this clause, in 

22 the case of a group health plan that is a 

23 multiemployer plan (as defined in section 

24 3(37) of the Employee Retirement Income 

25 Security Act of 1974), service by the covVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00388 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 ered employee performed for 2 or more 

2 employers during periods for which such 

3 employers contributed to such plan shall be 

4 treated as service performed for the entity 

5 referred to in the preceding sentence. 

6 ‘‘(ix) YEAR OF SERVICE.— For pur7 poses of this subparagraph, the term ‘year 

8 of service’ shall have the meaning provided 

9 in section 202(a)(3) of the Employee Re10 tirement Income Security Act of 1974.’’. 

11 (4) EFFECTIVE DATE OF AMENDMENTS.—The 

12 amendments made by this subsection shall apply to 

13 periods of coverage which would (without regard to 

14 the amendments made by this section) end on or 

15 after the date of the enactment of this Act. 

16 SEC. 3003. TEMPORARY OPTIONAL MEDICAID COVERAGE 

17 FOR THE UNEMPLOYED. 

18 (a) IN GENERAL.—Section 1902 of the Social Secu19 rity Act (42 U.S.C. 1396b) is amended— 

20 (1) in subsection (a)(10)(A)(ii)— 

21 (A) by striking ‘‘or’’ at the end of sub22 clause (XVIII); 

23 (B) by adding ‘‘or’’ at the end of subclause 

24 (XIX); and 


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1 (C) by adding at the end the following new 

2 subclause 

3 ‘‘(XX) who are described in sub4 section (dd)(1) (relating to certain un5 employed individuals and their fami6 lies);’’; and 

7 (2) by adding at the end the following new sub8 section: 

9 ‘‘(dd)(1) Individuals described in this paragraph 

10 are— 

11 ‘‘(A) individuals who— 

12 ‘‘(i) are within one or more of the categories de13 scribed in paragraph (2), as elected under the State 

14 plan; and 

15 ‘‘(ii) meet the applicable requirements of para16 graph (3); and 

17 ‘‘(B) individuals who— 

18 ‘‘(i) are the spouse, or dependent child under 

19 19 years of age, of an individual described in sub20 paragraph (A); and 

21 ‘‘(ii) meet the requirement of paragraph (3)(B). 

22 ‘‘(2) The categories of individuals described in this 

23 paragraph are each of the following: 

24 ‘‘(A)(i) Individuals who are receiving unemploy25 ment compensation benefits; and 


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1 ‘‘(ii) individuals who were receiving, but have 

2 exhausted, unemployment compensation benefits on 

3 or after July 1, 2008. 

4 ‘‘(B) Individuals who are involuntarily unem5 ployed and were involuntarily separated from em6 ployment on or after September 1, 2008, and before 

7 January 1, 2011, whose family gross income does 

8 not exceed a percentage specified by the State (not 

9 to exceed 200 percent) of the income official poverty 

10 line (as defined by the Office of Management and 

11 Budget, and revised annually in accordance with sec12 tion 673(2) of the Omnibus Budget Reconciliation 

13 Act of 1981) applicable to a family of the size in14 volved, and who, but for subsection 

15 (a)(10)(A)(ii)(XX), are not eligible for medical as16 sistance under this title or health assistance under 

17 title XXI. 

18 ‘‘(C) Individuals who are involuntarily unem19 ployed and were involuntarily separated from em20 ployment on or after September 1, 2008, and before 

21 January 1, 2011, who are members of households 

22 participating in the supplemental nutrition assist23 ance program established under the Food and Nutri24 tion Act of 2008 (7 U.S.C. 2011 et seq), and who, 

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1 ble for medical assistance under this title or health 

2 assistance under title XXI. 

3 ‘‘(3) The requirements of this paragraph with respect 

4 to an individual are the following: 

5 ‘‘(A) In the case of individuals within a cat6 egory described in subparagraph (A)(i) of paragraph 

7 (2), the individual was involuntarily separated from 

8 employment on or after September 1, 2008, and be9 fore January 1, 2011, or meets such comparable re10 quirement as the Secretary specifies through rule, 

11 guidance, or otherwise in the case of an individual 

12 who was an independent contractor. 

13 ‘‘(B) The individual is not otherwise covered 

14 under creditable coverage, as defined in section 

15 2701(c) of the Public Health Service Act (42 U.S.C. 

16 300gg(c)), but applied without regard to paragraph 

17 (1)(F) of such section and without regard to cov18 erage provided by reason of the application of sub19 section (a)(10)(A)(ii)(XX). 

20 ‘‘(4)(A) No income or resources test shall be applied 

21 with respect to any category of individuals described in 

22 subparagraph (A) or (C) of paragraph (2) who are eligible 

23 for medical assistance only by reason of the application 

24 of subsection (a)(10)(A)(ii)(XX). 


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1 ‘‘(B) Nothing in this subsection shall be construed 

2 to prevent a State from imposing a resource test for the 

3 category of individuals described in paragraph (2)(B)). 

4 ‘‘(C) In the case of individuals described in paragraph 

5 (2)(A) or (2)(C), the requirements of subsections (i)(22) 

6 and (x) in section 1903 shall not apply.’’. 

7 (b) 100 PERCENT FEDERAL MATCHING RATE.— 

8 (1) FMAP FOR TIME-LIMITED PERIOD.—The 

9 third sentence of section 1905(b) of such Act (42 

10 U.S.C. 1396d(b)) is amended by inserting before the 

11 period at the end the following: ‘‘and for items and 

12 services furnished on or after the date of enactment 

13 of this Act and before January 1, 2011, to individ14 uals who are eligible for medical assistance only by 

15 reason of the application of section 

16 1902(a)(10)(A)(ii)(XX)’’. 

17 (2) CERTAIN ENROLLMENT-RELATED ADMINIS18 TRATIVE COSTS.—Notwithstanding any other provi19 sion of law, for purposes of applying section 1903(a) 

20 of the Social Security Act (42 U.S.C. 1396b(a)), 

21 with respect to expenditures incurred on or after the 

22 date of the enactment of this Act and before Janu23 ary 1, 2011, for costs of administration (including 

24 outreach and the modification and operation of eligi25 bility information systems) attributable to eligibility 


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1 determination and enrollment of individuals who are 

2 eligible for medical assistance only by reason of the 

3 application of section 1902(a)(10)(A)(ii)(XX) of 

4 such Act, as added by subsection (a)(1), the Federal 

5 matching percentage shall be 100 percent instead of 

6 the matching percentage otherwise applicable. 

7 (c) CONFORMING AMENDMENTS.—(1) Section 

8 1903(f)(4) of such Act (42 U.S.C. 1396c(f)(4)) is amend9 ed by inserting ‘‘1902(a)(10)(A)(ii)(XX), or’’ after 

10 ‘‘1902(a)(10)(A)(ii)(XIX),’’. 

11 (2) Section 1905(a) of such Act (42 U.S.C. 

12 1396d(a)) is amended, in the matter preceding paragraph 

13 (1)— 

14 (A) by striking ‘‘or’’ at the end of clause (xii); 

15 (B) by adding ‘‘or’’ at the end of clause (xiii); 

16 and 

17 (C) by inserting after clause (xiii) the following 

18 new clause: 

19 ‘‘(xiv) individuals described in section 

20 1902(dd)(1),’’. 


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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 ‘‘Health Information Technology for Economic and Clin6 ical Health Act’’ or the ‘‘HITECH Act’’. 

7 (b) TABLE OF CONTENTS OF TITLE.—The table of 

8 contents of this title is as follows: 

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

Subtitle A—Promotion of Health Information Technology 

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

Sec. 4101. ONCHIT; standards development and adoption. 

‘‘TITLE XXX—HEALTH INFORMATION TECHNOLOGY AND 

QUALITY 

‘‘Sec. 3000. Definitions. 

‘‘Subtitle A—Promotion of Health Information Technology 

‘‘Sec. 3001. Office of the National Coordinator for Health Information 

Technology. 

‘‘Sec. 3002. HIT Policy Committee. 

‘‘Sec. 3003. HIT Standards Committee. 

‘‘Sec. 3004. Process for adoption of endorsed recommendations; adoption 

of initial set of standards, implementation specifications, 

and certification criteria. 

‘‘Sec. 3005. Application and use of adopted standards and implementation 

specifications by Federal agencies. 

‘‘Sec. 3006. Voluntary application and use of adopted standards and implementation specifications by private entities. 

‘‘Sec. 3007. Federal health information technology. 

‘‘Sec. 3008. Transitions. 

‘‘Sec. 3009. Relation to HIPAA privacy and security law. 

‘‘Sec. 3010. Authorization for appropriations. 

Sec. 4102. Technical amendment. 

PART II—APPLICATION AND USE OF ADOPTED HEALTH INFORMATION

TECHNOLOGY STANDARDS; REPORTS

Sec. 4111. Coordination of Federal activities with adopted standards and implementation specifications. 

Sec. 4112. Application to private entities. 

Sec. 4113. Study and reports. 


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Subtitle B—Testing of Health Information Technology 

Sec. 4201. National Institute for Standards and Technology testing. 

Sec. 4202. Research and development programs. 

Subtitle C—Incentives for the Use of Health Information Technology 

PART I—GRANTS AND LOANS FUNDING

Sec. 4301. Grant, loan, and demonstration programs. 

‘‘Subtitle B—Incentives for the Use of Health Information Technology 

‘‘Sec. 3011. Immediate funding to strengthen the health information technology infrastructure. 

‘‘Sec. 3012. Health information technology implementation assistance. 

‘‘Sec. 3013. State grants to promote health information technology. 

‘‘Sec. 3014. Competitive grants to States and Indian tribes for the development of loan programs to facilitate the widespread 

adoption of certified EHR technology. 

‘‘Sec. 3015. Demonstration program to integrate information technology 

into clinical education. 

‘‘Sec. 3016. Information technology professionals on health care. 

‘‘Sec. 3017. General grant and loan provisions. 

‘‘Sec. 3018. Authorization for appropriations. 

PART II—MEDICARE PROGRAM

Sec. 4311. Incentives for eligible professionals. 

Sec. 4312. Incentives for hospitals. 

Sec. 4313. Treatment of payments and savings; implementation funding. 

Sec. 4314. Study on application of EHR payment incentives for providers not 

receiving other incentive payments. 

PART III—MEDICAID FUNDING

Sec. 4321. Medicaid provider HIT adoption and operation payments; implementation funding. 

Sec. 4322. Medicaid nursing home grant program. 

Subtitle D—Privacy 

Sec. 4400. Definitions. 

PART I—IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS

Sec. 4401. Application of security provisions and penalties to business associates of covered entities; annual guidance on security provisions. 

Sec. 4402. Notification in the case of breach. 

Sec. 4403. Education on Health Information Privacy. 

Sec. 4404. Application of privacy provisions and penalties to business associates 

of covered entities. 

Sec. 4405. Restrictions on certain disclosures and sales of health information; 

accounting of certain protected health information disclosures; 

access to certain information in electronic format. 

Sec. 4406. Conditions on certain contacts as part of health care operations. 

Sec. 4407. Temporary breach notification requirement for vendors of personal 

health records and other non-HIPAA covered entities. 


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Sec. 4408. Business associate contracts required for certain entities. 

Sec. 4409. Clarification of application of wrongful disclosures criminal penalties. 

Sec. 4410. Improved enforcement. 

Sec. 4411. Audits. 

Sec. 4412. Special rule for information to reduce medication errors and improve 

patient safety. 

PART II—RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; 

EFFECTIVE DATE; REPORTS

Sec. 4421. Relationship to other laws. 

Sec. 4422. Regulatory references. 

Sec. 4423. Effective date. 

Sec. 4424. Studies, reports, guidance. 

Subtitle E—Miscellaneous Medicare Provisions 

Sec. 4501. Moratoria on certain Medicare regulations. 

Sec. 4502. Long-term care hospital technical corrections. 

1 Subtitle A—Promotion of Health 

2 Information Technology 

3 PART I—IMPROVING HEALTH CARE QUALITY, 

4 SAFETY, AND EFFICIENCY 

5 SEC. 4101. ONCHIT; STANDARDS DEVELOPMENT AND ADOP6 TION. 

7 The Public Health Service Act (42 U.S.C. 201 et 

8 seq.) is amended by adding at the end the following: 

9 ‘‘TITLE XXX—HEALTH INFORMA10 TION TECHNOLOGY AND 

11 QUALITY 

12 ‘‘SEC. 3000. DEFINITIONS. 

13 ‘‘In this title: 

14 ‘‘(1) CERTIFIED EHR TECHNOLOGY.—The term 

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1 tion 3001(c)(5) as meeting standards adopted under 

2 section 3004 that are applicable to the type of 

3 record involved (as determined by the Secretary, 

4 such as an ambulatory electronic health record for 

5 office-based physicians or an inpatient hospital elec6 tronic health record for hospitals). 

7 ‘‘(2) ENTERPRISE INTEGRATION.—The term 

8 ‘enterprise integration’ means the electronic linkage 

9 of health care providers, health plans, the govern10 ment, and other interested parties, to enable the 

11 electronic exchange and use of health information 

12 among all the components in the health care infra13 structure in accordance with applicable law, and 

14 such term includes related application protocols and 

15 other related standards. 

16 ‘‘(3) HEALTH CARE PROVIDER.—The term 

17 ‘health care provider’ means a hospital, skilled nurs18 ing facility, nursing facility, home health entity or 

19 other long term care facility, health care clinic, Fed20 erally qualified health center, group practice (as de21 fined in section 1877(h)(4) of the Social Security 

22 Act), a pharmacist, a pharmacy, a laboratory, a phy23 sician (as defined in section 1861(r) of the Social 

24 Security Act), a practitioner (as described in section 

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1 vider operated by, or under contract with, the Indian 

2 Health Service or by an Indian tribe (as defined in 

3 the Indian Self-Determination and Education Assist4 ance Act), tribal organization, or urban Indian orga5 nization (as defined in section 4 of the Indian 

6 Health Care Improvement Act), a rural health clinic, 

7 a covered entity under section 340B, an ambulatory 

8 surgical center described in section 1833(i) of the 

9 Social Security Act, and any other category of facil10 ity or clinician determined appropriate by the Sec11 retary. 

12 ‘‘(4) HEALTH INFORMATION.—The term ‘health 

13 information’ has the meaning given such term in 

14 section 1171(4) of the Social Security Act. 

15 ‘‘(5) HEALTH INFORMATION TECHNOLOGY.— 

16 The term ‘health information technology’ means 

17 hardware, software, integrated technologies and re18 lated licenses, intellectual property, upgrades, and 

19 packaged solutions sold as services that are specifi20 cally designed for use by health care entities for the 

21 electronic creation, maintenance, or exchange of 

22 health information. 

23 ‘‘(6) HEALTH PLAN.—The term ‘health plan’ 

24 has the meaning given such term in section 1171(5) 

25 of the Social Security Act. 


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1 ‘‘(7) HIT POLICY COMMITTEE.—The term ‘HIT 

2 Policy Committee’ means such Committee estab3 lished under section 3002(a). 

4 ‘‘(8) HIT STANDARDS COMMITTEE.—The term 

5 ‘HIT Standards Committee’ means such Committee 

6 established under section 3003(a). 

7 ‘‘(9) INDIVIDUALLY IDENTIFIABLE HEALTH IN8 FORMATION.—The term ‘individually identifiable 

9 health information’ has the meaning given such term 

10 in section 1171(6) of the Social Security Act. 

11 ‘‘(10) LABORATORY.—The term ‘laboratory’ 

12 has the meaning given such term in section 353(a). 

13 ‘‘(11) NATIONAL COORDINATOR.—The term 

14 ‘National Coordinator’ means the head of the Office 

15 of the National Coordinator for Health Information 

16 Technology established under section 3001(a). 

17 ‘‘(12) PHARMACIST.—The term ‘pharmacist’ 

18 has the meaning given such term in section 804(2) 

19 of the Federal Food, Drug, and Cosmetic Act. 

20 ‘‘(13) QUALIFIED ELECTRONIC HEALTH

21 RECORD.—The term ‘qualified electronic health 

22 record’ means an electronic record of health-related 

23 information on an individual that— 


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1 ‘‘(A) includes patient demographic and 

2 clinical health information, such as medical his3 tory and problem lists; and 

4 ‘‘(B) has the capacity— 

5 ‘‘(i) to provide clinical decision sup6 port; 

7 ‘‘(ii) to support physician order entry; 

8 ‘‘(iii) to capture and query informa9 tion relevant to health care quality; and 

10 ‘‘(iv) to exchange electronic health in11 formation with, and integrate such infor12 mation from other sources. 

13 ‘‘(14) STATE.—The term ‘State’ means each of 

14 the several States, the District of Columbia, Puerto 

15 Rico, the Virgin Islands, Guam, American Samoa, 

16 and the Northern Mariana Islands. 

17 ‘‘Subtitle A—Promotion of Health 

18 Information Technology 

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

20 HEALTH INFORMATION TECHNOLOGY. 

21 ‘‘(a) ESTABLISHMENT.—There is established within 

22 the Department of Health and Human Services an Office 

23 of the National Coordinator for Health Information Tech24 nology (referred to in this section as the ‘Office’). The Of25 fice shall be headed by a National Coordinator who shall 


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1 be appointed by the Secretary and shall report directly to 

2 the Secretary. 

3 ‘‘(b) PURPOSE.—The National Coordinator shall per4 form the duties under subsection (c) in a manner con5 sistent with the development of a nationwide health infor6 mation technology infrastructure that allows for the elec7 tronic use and exchange of information and that— 

8 ‘‘(1) ensures that each patient’s health informa9 tion is secure and protected, in accordance with ap10 plicable law; 

11 ‘‘(2) improves health care quality, reduces med12 ical errors, reduces health disparities, and advances 

13 the delivery of patient-centered medical care; 

14 ‘‘(3) reduces health care costs resulting from 

15 inefficiency, medical errors, inappropriate care, du16 plicative care, and incomplete information; 

17 ‘‘(4) provides appropriate information to help 

18 guide medical decisions at the time and place of 

19 care; 

20 ‘‘(5) ensures the inclusion of meaningful public 

21 input in such development of such infrastructure; 

22 ‘‘(6) improves the coordination of care and in23 formation among hospitals, laboratories, physician 

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1 structure for the secure and authorized exchange of 

2 health care information; 

3 ‘‘(7) improves public health activities and facili4 tates the early identification and rapid response to 

5 public health threats and emergencies, including bio6 terror events and infectious disease outbreaks; 

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

8 health care quality; 

9 ‘‘(9) promotes prevention of chronic diseases; 

10 ‘‘(10) promotes a more effective marketplace, 

11 greater competition, greater systems analysis, in12 creased consumer choice, and improved outcomes in 

13 health care services; and 

14 ‘‘(11) improves efforts to reduce health dispari15 ties. 

16 ‘‘(c) DUTIES OF THE NATIONAL COORDINATOR.— 

17 ‘‘(1) STANDARDS.—The National Coordinator 

18 shall review and determine whether to endorse each 

19 standard, implementation specification, and certifi20 cation criterion for the electronic exchange and use 

21 of health information that is recommended by the 

22 HIT Standards Committee under section 3003 for 

23 purposes of adoption under section 3004. The Coor24 dinator shall make such determination, and report to 

25 the Secretary such determination, not later than 45 


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1 days after the date the recommendation is received 

2 by the Coordinator. 

3 ‘‘(2) HIT POLICY COORDINATION.— 

4 ‘‘(A) IN GENERAL.—The National Coordi5 nator shall coordinate health information tech6 nology policy and programs of the Department 

7 with those of other relevant executive branch 

8 agencies with a goal of avoiding duplication of 

9 efforts and of helping to ensure that each agen10 cy undertakes health information technology ac11 tivities primarily within the areas of its greatest 

12 expertise and technical capability and in a man13 ner towards a coordinated national goal. 

14 ‘‘(B) HIT POLICY AND STANDARDS COM15 MITTEES.—The National Coordinator shall be a 

16 leading member in the establishment and oper17 ations of the HIT Policy Committee and the 

18 HIT Standards Committee and shall serve as a 

19 liaison among those two Committees and the 

20 Federal Government. 

21 ‘‘(3) STRATEGIC PLAN.— 

22 ‘‘(A) IN GENERAL.—The National Coordi23 nator shall, in consultation with other appro24 priate Federal agencies (including the National 

25 Institute of Standards and Technology), update 


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1 the Federal Health IT Strategic Plan (devel2 oped as of June 3, 2008) to include specific ob3 jectives, milestones, and metrics with respect to 

4 the following: 

5 ‘‘(i) The electronic exchange and use 

6 of health information and the enterprise 

7 integration of such information. 

8 ‘‘(ii) The utilization of an electronic 

9 health record for each person in the United 

10 States by 2014. 

11 ‘‘(iii) The incorporation of privacy and 

12 security protections for the electronic ex13 change of an individual’s individually iden14 tifiable health information. 

15 ‘‘(iv) Ensuring security methods to 

16 ensure appropriate authorization and elec17 tronic authentication of health information 

18 and specifying technologies or methodolo19 gies for rendering health information unus20 able, unreadable, or indecipherable. 

21 ‘‘(v) Specifying a framework for co22 ordination and flow of recommendations 

23 and policies under this subtitle among the 

24 Secretary, the National Coordinator, the 

25 HIT Policy Committee, the HIT Standards 


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1 Committee, and other health information 

2 exchanges and other relevant entities. 

3 ‘‘(vi) Methods to foster the public un4 derstanding of health information tech5 nology. 

6 ‘‘(vii) Strategies to enhance the use of 

7 health information technology in improving 

8 the quality of health care, reducing medical 

9 errors, reducing health disparities, improv10 ing public health, and improving the con11 tinuity of care among health care settings. 

12 ‘‘(B) COLLABORATION.—The strategic 

13 plan shall be updated through collaboration of 

14 public and private entities. 

15 ‘‘(C) MEASURABLE OUTCOME GOALS.— 

16 The strategic plan update shall include measur17 able outcome goals. 

18 ‘‘(D) PUBLICATION.—The National Coor19 dinator shall republish the strategic plan, in20 cluding all updates. 

21 ‘‘(4) WEBSITE.—The National Coordinator 

22 shall maintain and frequently update an Internet 

23 website on which there is posted information on the 

24 work, schedules, reports, recommendations, and 

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1 motion of a nationwide health information tech2 nology infrastructure. 

3 ‘‘(5) CERTIFICATION.— 

4 ‘‘(A) IN GENERAL.—The National Coordi5 nator, in consultation with the Director of the 

6 National Institute of Standards and Tech7 nology, shall develop a program (either directly 

8 or by contract) for the voluntary certification of 

9 health information technology as being in com10 pliance with applicable certification criteria 

11 adopted under this subtitle. Such program shall 

12 include testing of the technology in accordance 

13 with section 4201(b) of the HITECH Act. 

14 ‘‘(B) CERTIFICATION CRITERIA DE15 SCRIBED.—In this title, the term ‘certification 

16 criteria’ means, with respect to standards and 

17 implementation specifications for health infor18 mation technology, criteria to establish that the 

19 technology meets such standards and implemen20 tation specifications. 

21 ‘‘(6) REPORTS AND PUBLICATIONS.— 

22 ‘‘(A) REPORT ON ADDITIONAL FUNDING

23 OR AUTHORITY NEEDED.—Not later than 12 

24 months after the date of the enactment of this 

25 title, the National Coordinator shall submit to 


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1 the appropriate committees of jurisdiction of 

2 the House of Representatives and the Senate a 

3 report on any additional funding or authority 

4 the Coordinator or the HIT Policy Committee 

5 or HIT Standards Committee requires to evalu6 ate and develop standards, implementation 

7 specifications, and certification criteria, or to 

8 achieve full participation of stakeholders in the 

9 adoption of a nationwide health information 

10 technology infrastructure that allows for the 

11 electronic use and exchange of health informa12 tion. 

13 ‘‘(B) IMPLEMENTATION REPORT.—The 

14 National Coordinator shall prepare a report 

15 that identifies lessons learned from major pub16 lic and private health care systems in their im17 plementation of health information technology, 

18 including information on whether the tech19 nologies and practices developed by such sys20 tems may be applicable to and usable in whole 

21 or in part by other health care providers. 

22 ‘‘(C) ASSESSMENT OF IMPACT OF HIT ON

23 COMMUNITIES WITH HEALTH DISPARITIES AND

24 UNINSURED, UNDERINSURED, AND MEDICALLY

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1 nator shall assess and publish the impact of 

2 health information technology in communities 

3 with health disparities and in areas with a high 

4 proportion of individuals who are uninsured, 

5 underinsured, and medically underserved indi6 viduals (including urban and rural areas) and 

7 identify practices to increase the adoption of 

8 such technology by health care providers in 

9 such communities. 

10 ‘‘(D) EVALUATION OF BENEFITS AND

11 COSTS OF THE ELECTRONIC USE AND EX12 CHANGE OF HEALTH INFORMATION.—The Na13 tional Coordinator shall evaluate and publish 

14 evidence on the benefits and costs of the elec15 tronic use and exchange of health information 

16 and assess to whom these benefits and costs ac17 crue. 

18 ‘‘(E) RESOURCE REQUIREMENTS.—The 

19 National Coordinator shall estimate and publish 

20 resources required annually to reach the goal of 

21 utilization of an electronic health record for 

22 each person in the United States by 2014, in23 cluding the required level of Federal funding, 

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1 unteers to activities for the utilization of such 

2 records. 

3 ‘‘(7) ASSISTANCE.—The National Coordinator 

4 may provide financial assistance to consumer advo5 cacy groups and not-for-profit entities that work in 

6 the public interest for purposes of defraying the cost 

7 to such groups and entities to participate under, 

8 whether in whole or in part, the National Tech9 nology Transfer Act of 1995 (15 U.S.C. 272 note). 

10 ‘‘(8) GOVERNANCE FOR NATIONWIDE HEALTH

11 INFORMATION NETWORK.—The National Coordi12 nator shall establish a governance mechanism for the 

13 nationwide health information network. 

14 ‘‘(d) DETAIL OF FEDERAL EMPLOYEES.— 

15 ‘‘(1) IN GENERAL.—Upon the request of the 

16 National Coordinator, the head of any Federal agen17 cy is authorized to detail, with or without reimburse18 ment from the Office, any of the personnel of such 

19 agency to the Office to assist it in carrying out its 

20 duties under this section. 

21 ‘‘(2) EFFECT OF DETAIL.—Any detail of per22 sonnel under paragraph (1) shall— 

23 ‘‘(A) not interrupt or otherwise affect the 

24 civil service status or privileges of the Federal 

25 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, by reduc2 ing health disparities, and by advancing re3 search and education. 

4 ‘‘(vi) Technologies that allow individ5 ually identifiable health information to be 

6 rendered unusable, unreadable, or indeci7 pherable to unauthorized individuals when 

8 such information is transmitted in the na9 tionwide health information network or 

10 physically transported outside of the se11 cured, physical perimeter of a health care 

12 provider, health plan, or health care clear13 inghouse. 

14 ‘‘(C) OTHER AREAS FOR CONSIDER15 ATION.—In making recommendations under 

16 subparagraph (A), the HIT Policy Committee 

17 may consider the following additional areas: 

18 ‘‘(i) The appropriate uses of a nation19 wide health information infrastructure, in20 cluding for purposes of— 

21 ‘‘(I) the collection of quality data 

22 and public reporting; 

23 ‘‘(II) biosurveillance and public 

24 health; 


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1 ‘‘(III) medical and clinical re2 search; and 

3 ‘‘(IV) drug safety. 

4 ‘‘(ii) Self-service technologies that fa5 cilitate the use and exchange of patient in6 formation and reduce wait times. 

7 ‘‘(iii) Telemedicine technologies, in 

8 order to reduce travel requirements for pa9 tients in remote areas. 

10 ‘‘(iv) Technologies that facilitate home 

11 health care and the monitoring of patients 

12 recuperating at home. 

13 ‘‘(v) Technologies that help reduce 

14 medical errors. 

15 ‘‘(vi) Technologies that facilitate the 

16 continuity of care among health settings. 

17 ‘‘(vii) Technologies that meet the 

18 needs of diverse populations. 

19 ‘‘(viii) Any other technology that the 

20 HIT Policy Committee finds to be among 

21 the technologies with the greatest potential 

22 to improve the quality and efficiency of 

23 health care. 

24 ‘‘(3) FORUM.—The HIT Policy Committee shall 

25 serve as a forum for broad stakeholder input with 


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1 specific expertise in policies relating to the matters 

2 described in paragraphs (1) and (2). 

3 ‘‘(c) MEMBERSHIP AND OPERATIONS.— 

4 ‘‘(1) IN GENERAL.—The National Coordinator 

5 shall provide leadership in the establishment and op6 erations of the HIT Policy Committee. 

7 ‘‘(2) MEMBERSHIP.—The membership of the 

8 HIT Policy Committee shall at least reflect pro9 viders, ancillary healthcare workers, consumers, pur10 chasers, health plans, technology vendors, research11 ers, relevant Federal agencies, and individuals with 

12 technical expertise on health care quality, privacy 

13 and security, and on the electronic exchange and use 

14 of health information. 

15 ‘‘(3) CONSIDERATION.—The National Coordi16 nator shall ensure that the relevant recommenda17 tions and comments from the National Committee 

18 on Vital and Health Statistics are considered in the 

19 development of policies. 

20 ‘‘(d) APPLICATION OF FACA.—The Federal Advisory 

21 Committee Act (5 U.S.C. App.), other than section 14 of 

22 such Act, shall apply to the HIT Policy Committee. 

23 ‘‘(e) PUBLICATION.—The Secretary shall provide for 

24 publication in the Federal Register and the posting on the 

25 Internet website of the Office of the National Coordinator 


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1 for Health Information Technology of all policy rec2 ommendations made by the HIT Policy Committee under 

3 this section. 

4 ‘‘SEC. 3003. HIT STANDARDS COMMITTEE. 

5 ‘‘(a) ESTABLISHMENT.—There is established a com6 mittee to be known as the HIT Standards Committee to 

7 recommend to the National Coordinator standards, imple8 mentation specifications, and certification criteria for the 

9 electronic exchange and use of health information for pur10 poses of adoption under section 3004, consistent with the 

11 implementation of the strategic plan described in section 

12 3001(c)(3) and beginning with the areas listed in section 

13 3002(b)(2)(B) in accordance with policies developed by 

14 the HIT Policy Committee. 

15 ‘‘(b) DUTIES.— 

16 ‘‘(1) STANDARDS DEVELOPMENT.— 

17 ‘‘(A) IN GENERAL.—The HIT Standards 

18 Committee shall recommend to the National 

19 Coordinator standards, implementation speci20 fications, and certification criteria described in 

21 subsection (a) that have been developed, har22 monized, or recognized by the HIT Standards 

23 Committee. The HIT Standards Committee 

24 shall update such recommendations and make 

25 new recommendations as appropriate, including 


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1 in response to a notification sent under section 

2 3004(a)(2)(B). Such recommendations shall be 

3 consistent with the latest recommendations 

4 made by the HIT Policy Committee. 

5 ‘‘(B) PILOT TESTING OF STANDARDS AND

6 IMPLEMENTATION SPECIFICATIONS.—In the de7 velopment, harmonization, or recognition of 

8 standards and implementation specifications, 

9 the HIT Standards Committee shall, as appro10 priate, provide for the testing of such standards 

11 and specifications by the National Institute for 

12 Standards and Technology under section 

13 4201(a) of the HITECH Act. 

14 ‘‘(C) CONSISTENCY.—The standards, im15 plementation specifications, and certification 

16 criteria recommended under this subsection 

17 shall be consistent with the standards for infor18 mation transactions and data elements adopted 

19 pursuant to section 1173 of the Social Security 

20 Act. 

21 ‘‘(2) FORUM.—The HIT Standards Committee 

22 shall serve as a forum for the participation of a 

23 broad range of stakeholders to provide input on the 

24 development, harmonization, and recognition of 

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1 cation criteria necessary for the development and 

2 adoption of a nationwide health information tech3 nology infrastructure that allows for the electronic 

4 use and exchange of health information. 

5 ‘‘(3) SCHEDULE.—Not later than 90 days after 

6 the date of the enactment of this title, the HIT 

7 Standards Committee shall develop a schedule for 

8 the assessment of policy recommendations developed 

9 by the HIT Policy Committee under section 3002. 

10 The HIT Standards Committee shall update such 

11 schedule annually. The Secretary shall publish such 

12 schedule in the Federal Register. 

13 ‘‘(4) PUBLIC INPUT.—The HIT Standards 

14 Committee shall conduct open public meetings and 

15 develop a process to allow for public comment on the 

16 schedule described in paragraph (3) and rec17 ommendations described in this subsection. Under 

18 such process comments shall be submitted in a time19 ly manner after the date of publication of a rec20 ommendation under this subsection. 

21 ‘‘(c) MEMBERSHIP AND OPERATIONS.— 

22 ‘‘(1) IN GENERAL.—The National Coordinator 

23 shall provide leadership in the establishment and op24 erations of the HIT Standards Committee. 


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1 ‘‘(2) MEMBERSHIP.—The membership of the 

2 HIT Standards 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 standards. 

14 ‘‘(4) ASSISTANCE.—For the purposes of car15 rying out this section, the Secretary may provide or 

16 ensure that financial assistance is provided by the 

17 HIT Standards Committee to defray in whole or in 

18 part any membership fees or dues charged by such 

19 Committee to those consumer advocacy groups and 

20 not for profit entities that work in the public inter21 est as a part of their mission. 

22 ‘‘(d) APPLICATION OF FACA.—The Federal Advisory 

23 Committee Act (5 U.S.C. App.), other than section 14, 

24 shall apply to the HIT Standards Committee. 


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1 ‘‘(e) PUBLICATION.—The Secretary shall provide for 

2 publication in the Federal Register and the posting on the 

3 Internet website of the Office of the National Coordinator 

4 for Health Information Technology of all recommenda5 tions made by the HIT Standards Committee under this 

6 section. 

7 ‘‘SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED REC8 OMMENDATIONS; ADOPTION OF INITIAL SET 

9 OF STANDARDS, IMPLEMENTATION SPECI10 FICATIONS, AND CERTIFICATION CRITERIA. 

11 ‘‘(a) PROCESS FOR ADOPTION OF ENDORSED REC12 OMMENDATIONS.— 

13 ‘‘(1) REVIEW OF ENDORSED STANDARDS, IM14 PLEMENTATION SPECIFICATIONS, AND CERTIFI15 CATION CRITERIA.—Not later than 90 days after the 

16 date of receipt of standards, implementation speci17 fications, or certification criteria endorsed under sec18 tion 3001(c), the Secretary, in consultation with rep19 resentatives of other relevant Federal agencies, shall 

20 jointly review such standards, implementation speci21 fications, or certification criteria and shall determine 

22 whether or not to propose adoption of such stand23 ards, implementation specifications, or certification 

24 criteria. 


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1 ‘‘(2) DETERMINATION TO ADOPT STANDARDS, 

2 IMPLEMENTATION SPECIFICATIONS, AND CERTIFI3 CATION CRITERIA.—If the Secretary determines— 

4 ‘‘(A) to propose adoption of any grouping 

5 of such standards, implementation specifica6 tions, or certification criteria, the Secretary 

7 shall, by regulation, determine whether or not 

8 to adopt such grouping of standards, implemen9 tation specifications, or certification criteria; or 

10 ‘‘(B) not to propose adoption of any group11 ing of standards, implementation specifications, 

12 or certification criteria, the Secretary shall no13 tify the National Coordinator and the HIT 

14 Standards Committee in writing of such deter15 mination and the reasons for not proposing the 

16 adoption of such recommendation. 

17 ‘‘(3) PUBLICATION.—The Secretary shall pro18 vide for publication in the Federal Register of all de19 terminations made by the Secretary under para20 graph (1). 

21 ‘‘(b) ADOPTION OF INITIAL SET OF STANDARDS, IM22 PLEMENTATION SPECIFICATIONS, AND CERTIFICATION

23 CRITERIA.— 

24 ‘‘(1) IN GENERAL.—Not later than December 

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1 making process described in section 3004(a), adopt 

2 an initial set of standards, implementation specifica3 tions, and certification criteria for the areas required 

4 for consideration under section 3002(b)(2)(B). 

5 ‘‘(2) APPLICATION OF CURRENT STANDARDS, 

6 IMPLEMENTATION SPECIFICATIONS, AND CERTIFI7 CATION CRITERIA.—The standards, implementation 

8 specifications, and certification criteria adopted be9 fore the date of the enactment of this title through 

10 the process existing through the Office of the Na11 tional Coordinator for Health Information Tech12 nology may be applied towards meeting the require13 ment of paragraph (1). 

14 ‘‘SEC. 3005. APPLICATION AND USE OF ADOPTED STAND15 ARDS AND IMPLEMENTATION SPECIFICA16 TIONS BY FEDERAL AGENCIES. 

17 ‘‘For requirements relating to the application and use 

18 by Federal agencies of the standards and implementation 

19 specifications adopted under section 3004, see section 

20 4111 of the HITECH Act. 

21 ‘‘SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPT22 ED STANDARDS AND IMPLEMENTATION 

23 SPECIFICATIONS BY PRIVATE ENTITIES. 

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

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1 tion specification adopted under section 3004 shall be vol2 untary with respect to private entities. 

3 ‘‘(b) RULE OF CONSTRUCTION.—Nothing in this sub4 title shall be construed to require that a private entity that 

5 enters into a contract with the Federal Government apply 

6 or use the standards and implementation specifications 

7 adopted under section 3004 with respect to activities not 

8 related to the contract. 

9 ‘‘SEC. 3007. FEDERAL HEALTH INFORMATION TECH10 NOLOGY. 

11 ‘‘(a) IN GENERAL.—The National Coordinator shall 

12 support the development, routine updating, and provision 

13 of qualified EHR technology (as defined in section 3000) 

14 consistent with subsections (b) and (c) unless the Sec15 retary determines that the needs and demands of pro16 viders are being substantially and adequately met through 

17 the marketplace. 

18 ‘‘(b) CERTIFICATION.—In making such EHR tech19 nology publicly available, the National Coordinator shall 

20 ensure that the qualified EHR technology described in 

21 subsection (a) is certified under the program developed 

22 under section 3001(c)(3) to be in compliance with applica23 ble standards adopted under section 3003(a). 

24 ‘‘(c) AUTHORIZATION TO CHARGE A NOMINAL

25 FEE.—The National Coordinator may impose a nominal 


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1 fee for the adoption by a health care provider of the health 

2 information technology system developed or approved 

3 under subsection (a) and (b). Such fee shall take into ac4 count the financial circumstances of smaller providers, low 

5 income providers, and providers located in rural or other 

6 medically underserved areas. 

7 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec8 tion shall be construed to require that a private or govern9 ment entity adopt or use the technology provided under 

10 this section. 

11 ‘‘SEC. 3008. TRANSITIONS. 

12 ‘‘(a) ONCHIT.—To the extent consistent with sec13 tion 3001, all functions, personnel, assets, liabilities, and 

14 administrative actions applicable to the National Coordi15 nator for Health Information Technology appointed under 

16 Executive Order 13335 or the Office of such National Co17 ordinator on the date before the date of the enactment 

18 of this title shall be transferred to the National Coordi19 nator appointed under section 3001(a) and the Office of 

20 such National Coordinator as of the date of the enactment 

21 of this title. 

22 ‘‘(b) AHIC.— 

23 ‘‘(1) To the extent consistent with sections 

24 3002 and 3003, all functions, personnel, assets, and 

25 liabilities applicable to the AHIC Successor, Inc. 


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1 doing business as the National eHealth Collaborative 

2 as of the day before the date of the enactment of 

3 this title shall be transferred to the HIT Policy 

4 Committee or the HIT Standards Committee, estab5 lished under section 3002(a) or 3003(a), as appro6 priate, as of the date of the enactment of this title. 

7 ‘‘(2) In carrying out section 3003(b)(1)(A), 

8 until recommendations are made by the HIT Policy 

9 Committee, recommendations of the HIT Standards 

10 Committee shall be consistent with the most recent 

11 recommendations made by such AHIC Successor, 

12 Inc. 

13 ‘‘(c) RULES OF CONSTRUCTION.— 

14 ‘‘(1) ONCHIT.—Nothing in section 3001 or 

15 subsection (a) shall be construed as requiring the 

16 creation of a new entity to the extent that the Office 

17 of the National Coordinator for Health Information 

18 Technology established pursuant to Executive Order 

19 13335 is consistent with the provisions of section 

20 3001. 

21 ‘‘(2) AHIC.—Nothing in sections 3002 or 3003 

22 or subsection (b) shall be construed as prohibiting 

23 the AHIC Successor, Inc. doing business as the Na24 tional eHealth Collaborative from modifying its char25 ter, duties, membership, and any other structure or 


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1 function required to be consistent with section 3002 

2 and 3003 in a manner that would permit the Sec3 retary to choose to recognize such AHIC Successor, 

4 Inc. as the HIT Policy Committee or the HIT 

5 Standards Committee. 

6 ‘‘SEC. 3009. RELATION TO HIPAA PRIVACY AND SECURITY 

7 LAW. 

8 ‘‘(a) IN GENERAL.—With respect to the relation of 

9 this title to HIPAA privacy and security law: 

10 ‘‘(1) This title may not be construed as having 

11 any effect on the authorities of the Secretary under 

12 HIPAA privacy and security law. 

13 ‘‘(2) The purposes of this title include ensuring 

14 that the health information technology standards 

15 and implementation specifications adopted under 

16 section 3004 take into account the requirements of 

17 HIPAA privacy and security law. 

18 ‘‘(b) DEFINITION.—For purposes of this section, the 

19 term ‘HIPAA privacy and security law’ means— 

20 ‘‘(1) the provisions of part C of title XI of the 

21 Social Security Act, section 264 of the Health Insur22 ance Portability and Accountability Act of 1996, and 

23 subtitle D of title IV of the HITECH Act; and 

24 ‘‘(2) regulations under such provisions. 


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1 ‘‘SEC. 3010. AUTHORIZATION FOR APPROPRIATIONS. 

2 ‘‘There is authorized to be appropriated to the Office 

3 of the National Coordinator for Health Information Tech4 nology to carry out this subtitle $250,000,000 for fiscal 

5 year 2009.’’. 

6 SEC. 4102. TECHNICAL AMENDMENT. 

7 Section 1171(5) of the Social Security Act (42 U.S.C. 

8 1320d) is amended by striking ‘‘or C’’ and inserting ‘‘C, 

9 or D’’. 

10 PART II—APPLICATION AND USE OF ADOPTED 

11 HEALTH INFORMATION TECHNOLOGY 

12 STANDARDS; REPORTS 

13 SEC. 4111. COORDINATION OF FEDERAL ACTIVITIES WITH 

14 ADOPTED STANDARDS AND IMPLEMENTA15 TION SPECIFICATIONS. 

16 (a) SPENDING ON HEALTH INFORMATION TECH17 NOLOGY SYSTEMS.—As each agency (as defined in the Ex18 ecutive Order issued on August 22, 2006, relating to pro19 moting quality and efficient health care in Federal govern20 ment administered or sponsored health care programs) im21 plements, acquires, or upgrades health information tech22 nology systems used for the direct exchange of individually 

23 identifiable health information between agencies and with 

24 non-Federal entities, it shall utilize, where available, 

25 health information technology systems and products that 

26 meet standards and implementation specifications adopted 


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1 under section 3004 of the Public Health Service Act, as 

2 added by section 4101. 

3 (b) FEDERAL INFORMATION COLLECTION ACTIVI4 TIES.—With respect to a standard or implementation 

5 specification adopted under section 3004 of the Public 

6 Health Service Act, as added by section 4101, the Presi7 dent shall take measures to ensure that Federal activities 

8 involving the broad collection and submission of health in9 formation are consistent with such standard or implemen10 tation specification, respectively, within three years after 

11 the date of such adoption. 

12 (c) APPLICATION OF DEFINITIONS.—The definitions 

13 contained in section 3000 of the Public Health Service 

14 Act, as added by section 4101, shall apply for purposes 

15 of this part. 

16 SEC. 4112. APPLICATION TO PRIVATE ENTITIES. 

17 Each agency (as defined in such Executive Order 

18 issued on August 22, 2006, relating to promoting quality 

19 and efficient health care in Federal government adminis20 tered or sponsored health care programs) shall require in 

21 contracts or agreements with health care providers, health 

22 plans, or health insurance issuers that as each provider, 

23 plan, or issuer implements, acquires, or upgrades health 

24 information technology systems, it shall utilize, where 

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1 ucts that meet standards and implementation specifica2 tions adopted under section 3004 of the Public Health 

3 Service Act, as added by section 4101. 

4 SEC. 4113. STUDY AND REPORTS. 

5 (a) REPORT ON ADOPTION OF NATIONWIDE SYS6 TEM.—Not later than 2 years after the date of the enact7 ment of this Act and annually thereafter, the Secretary 

8 of Health and Human Services shall submit to the appro9 priate committees of jurisdiction of the House of Rep10 resentatives and the Senate a report that— 

11 (1) describes the specific actions that have been 

12 taken by the Federal Government and private enti13 ties to facilitate the adoption of a nationwide system 

14 for the electronic use and exchange of health infor15 mation; 

16 (2) describes barriers to the adoption of such a 

17 nationwide system; and 

18 (3) contains recommendations to achieve full 

19 implementation of such a nationwide system. 

20 (b) REIMBURSEMENT INCENTIVE STUDY AND RE21 PORT.— 

22 (1) STUDY.—The Secretary of Health and 

23 Human Services shall carry out, or contract with a 

24 private entity to carry out, a study that examines 

25 methods to create efficient reimbursement incentives 


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1 for improving health care quality in Federally quali2 fied health centers, rural health clinics, and free 

3 clinics. 

4 (2) REPORT.—Not later than 2 years after the 

5 date of the enactment of this Act, the Secretary of 

6 Health and Human Services shall submit to the ap7 propriate committees of jurisdiction of the House of 

8 Representatives and the Senate a report on the 

9 study carried out under paragraph (1). 

10 (c) AGING SERVICES TECHNOLOGY STUDY AND RE11 PORT.— 

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

13 Human Services shall carry out, or contract with a 

14 private entity to carry out, a study of matters relat15 ing to the potential use of new aging services tech16 nology to assist seniors, individuals with disabilities, 

17 and their caregivers throughout the aging process. 

18 (2) MATTERS TO BE STUDIED.—The study 

19 under paragraph (1) shall include— 

20 (A) an evaluation of— 

21 (i) methods for identifying current, 

22 emerging, and future health technology 

23 that can be used to meet the needs of sen24 iors and individuals with disabilities and 


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1 their caregivers across all aging services 

2 settings, as specified by the Secretary; 

3 (ii) methods for fostering scientific in4 novation with respect to aging services 

5 technology within the business and aca6 demic communities; and 

7 (iii) developments in aging services 

8 technology in other countries that may be 

9 applied in the United States; and 

10 (B) identification of— 

11 (i) barriers to innovation in aging 

12 services technology and devising strategies 

13 for removing such barriers; and 

14 (ii) barriers to the adoption of aging 

15 services technology by health care pro16 viders and consumers and devising strate17 gies to removing such barriers. 

18 (3) REPORT.—Not later than 24 months after 

19 the date of the enactment of this Act, the Secretary 

20 shall submit to the appropriate committees of juris21 diction of the House of Representatives and of the 

22 Senate a report on the study carried out under para23 graph (1). 

24 (4) DEFINITIONS.—For purposes of this sub25 section: 


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1 (A) AGING SERVICES TECHNOLOGY.—The 

2 term ‘‘aging services technology’’ means health 

3 technology that meets the health care needs of 

4 seniors, individuals with disabilities, and the 

5 caregivers of such seniors and individuals. 

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

7 meaning as specified by the Secretary. 

8 Subtitle B—Testing of Health 

9 Information Technology 

10 SEC. 4201. NATIONAL INSTITUTE FOR STANDARDS AND 

11 TECHNOLOGY TESTING. 

12 (a) PILOT TESTING OF STANDARDS AND IMPLEMEN13 TATION SPECIFICATIONS.—In coordination with the HIT 

14 Standards Committee established under section 3003 of 

15 the Public Health Service Act, as added by section 4101, 

16 with respect to the development of standards and imple17 mentation specifications under such section, the Director 

18 of the National Institute for Standards and Technology 

19 shall test such standards and implementation specifica20 tions, as appropriate, in order to assure the efficient im21 plementation and use of such standards and implementa22 tion specifications. 

23 (b) VOLUNTARY TESTING PROGRAM.—In coordina24 tion with the HIT Standards Committee established under 

25 section 3003 of the Public Health Service Act, as added 


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1 by section 4101, with respect to the development of stand2 ards and implementation specifications under such sec3 tion, the Director of the National Institute of Standards 

4 and Technology shall support the establishment of a con5 formance testing infrastructure, including the develop6 ment of technical test beds. The development of this con7 formance testing infrastructure may include a program to 

8 accredit independent, non-Federal laboratories to perform 

9 testing. 

10 SEC. 4202. RESEARCH AND DEVELOPMENT PROGRAMS. 

11 (a) HEALTH CARE INFORMATION ENTERPRISE INTE12 GRATION RESEARCH CENTERS.— 

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

14 Institute of Standards and Technology, in consulta15 tion with the Director of the National Science Foun16 dation and other appropriate Federal agencies, shall 

17 establish a program of assistance to institutions of 

18 higher education (or consortia thereof which may in19 clude nonprofit entities and Federal Government 

20 laboratories) to establish multidisciplinary Centers 

21 for Health Care Information Enterprise Integration. 

22 (2) REVIEW; COMPETITION.—Grants shall be 

23 awarded under this subsection on a merit-reviewed, 

24 competitive basis. 


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1 (3) PURPOSE.—The purposes of the Centers de2 scribed in paragraph (1) shall be— 

3 (A) to generate innovative approaches to 

4 health care information enterprise integration 

5 by conducting cutting-edge, multidisciplinary 

6 research on the systems challenges to health 

7 care delivery; and 

8 (B) the development and use of health in9 formation technologies and other complemen10 tary fields. 

11 (4) RESEARCH AREAS.—Research areas may in12 clude— 

13 (A) interfaces between human information 

14 and communications technology systems; 

15 (B) voice-recognition systems; 

16 (C) software that improves interoperability 

17 and connectivity among health information sys18 tems; 

19 (D) software dependability in systems crit20 ical to health care delivery; 

21 (E) measurement of the impact of informa22 tion technologies on the quality and productivity 

23 of health care; 

24 (F) health information enterprise manage25 ment; 


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1 (G) health information technology security 

2 and integrity; and 

3 (H) relevant health information technology 

4 to reduce medical errors. 

5 (5) APPLICATIONS.—An institution of higher 

6 education (or a consortium thereof) seeking funding 

7 under this subsection shall submit an application to 

8 the Director of the National Institute of Standards 

9 and Technology at such time, in such manner, and 

10 containing such information as the Director may re11 quire. The application shall include, at a minimum, 

12 a description of— 

13 (A) the research projects that will be un14 dertaken by the Center established pursuant to 

15 assistance under paragraph (1) and the respec16 tive contributions of the participating entities; 

17 (B) how the Center will promote active col18 laboration among scientists and engineers from 

19 different disciplines, such as information tech20 nology, biologic sciences, management, social 

21 sciences, and other appropriate disciplines; 

22 (C) technology transfer activities to dem23 onstrate and diffuse the research results, tech24 nologies, and knowledge; and 


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1 (D) how the Center will contribute to the 

2 education and training of researchers and other 

3 professionals in fields relevant to health infor4 mation enterprise integration. 

5 (b) NATIONAL INFORMATION TECHNOLOGY RE6 SEARCH AND DEVELOPMENT PROGRAM.—The National 

7 High-Performance Computing Program established by 

8 section 101 of the High-Performance Computing Act of 

9 1991 (15 U.S.C. 5511) shall coordinate Federal research 

10 and development programs related to the development and 

11 deployment of health information technology, including ac12 tivities related to— 

13 (1) computer infrastructure; 

14 (2) data security; 

15 (3) development of large-scale, distributed, reli16 able computing systems; 

17 (4) wired, wireless, and hybrid high-speed net18 working; 

19 (5) development of software and software-inten20 sive systems; 

21 (6) human-computer interaction and informa22 tion management technologies; and 

23 (7) the social and economic implications of in24 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. 4301. GRANT, LOAN, AND DEMONSTRATION PRO5 GRAMS. 

6 Title XXX of the Public Health Service Act, as added 

7 by section 4101, is amended by adding at the end the fol8 lowing 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 shall, using 

15 amounts appropriated under section 3018, invest in the 

16 infrastructure necessary to allow for and promote the elec17 tronic exchange and use of health information for each 

18 individual in the United States consistent with the goals 

19 outlined in the strategic plan developed by the National 

20 Coordinator (and as available) under section 3001. To the 

21 greatest extent practicable, the Secretary shall ensure that 

22 any funds so appropriated shall be used for the acquisition 

23 of health information technology that meets standards and 

24 certification criteria adopted before the date of the enact25 ment of this title until such date as the standards are 


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1 adopted under section 3004. The Secretary shall invest 

2 funds through the different agencies with expertise in such 

3 goals, such as the Office of the National Coordinator for 

4 Health Information Technology, the Health Resources and 

5 Services Administration, the Agency for Healthcare Re6 search and Quality, the Centers of Medicare & Medicaid 

7 Services, the Centers for Disease Control and Prevention, 

8 and the Indian Health Service to support the following: 

9 ‘‘(1) Health information technology architecture 

10 that will support the nationwide electronic exchange 

11 and use of health information in a secure, private, 

12 and accurate manner, including connecting health 

13 information exchanges, and which may include up14 dating and implementing the infrastructure nec15 essary within different agencies of the Department 

16 of Health and Human Services to support the elec17 tronic use and exchange of health information. 

18 ‘‘(2) Development and adoption of appropriate 

19 certified electronic health records for categories of 

20 providers, as defined in section 3000, not eligible for 

21 support under title XVIII or XIX of the Social Secu22 rity Act for the adoption of such records. 

23 ‘‘(3) Training on and dissemination of informa24 tion on best practices to integrate health information 

25 technology, including electronic health records, into 


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1 a provider’s delivery of care, consistent with best 

2 practices learned from the Health Information Tech3 nology Research Center developed under section 

4 3012(b), including community health centers receiv5 ing assistance under section 330, covered entities 

6 under section 340B, and providers participating in 

7 one or more of the programs under titles XVIII, 

8 XIX, and XXI of the Social Security Act (relating 

9 to Medicare, Medicaid, and the State Children’s 

10 Health Insurance Program). 

11 ‘‘(4) Infrastructure and tools for the promotion 

12 of telemedicine, including coordination among Fed13 eral agencies in the promotion of telemedicine. 

14 ‘‘(5) Promotion of the interoperability of clinical 

15 data repositories or registries. 

16 ‘‘(6) Promotion of technologies and best prac17 tices that enhance the protection of health informa18 tion by all holders of individually identifiable health 

19 information. 

20 ‘‘(7) Improvement and expansion of the use of 

21 health information technology by public health de22 partments. 

23 ‘‘(8) Provision of $300 million to support re24 gional or sub-national efforts towards health infor25 mation exchange. 


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1 ‘‘(b) COORDINATION.—The Secretary shall ensure 

2 funds under this section are used in a coordinated manner 

3 with other health information promotion activities. 

4 ‘‘(c) ADDITIONAL USE OF FUNDS.—In addition to 

5 using funds as provided in subsection (a), the Secretary 

6 may use amounts appropriated under section 3018 to 

7 carry out health information technology activities that are 

8 provided for under laws in effect on the date of the enact9 ment of this title. 

10 ‘‘SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLE11 MENTATION ASSISTANCE. 

12 ‘‘(a) HEALTH INFORMATION TECHNOLOGY EXTEN13 SION PROGRAM.—To assist health care providers to adopt, 

14 implement, and effectively use certified EHR technology 

15 that allows for the electronic exchange and use of health 

16 information, the Secretary, acting through the Office of 

17 the National Coordinator, shall establish a health informa18 tion technology extension program to provide health infor19 mation technology assistance services to be carried out 

20 through the Department of Health and Human Services. 

21 The National Coordinator shall consult with other Federal 

22 agencies with demonstrated experience and expertise in in23 formation technology services, such as the National Insti24 tute of Standards and Technology, in developing and im25 plementing this program. 


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1 ‘‘(b) HEALTH INFORMATION TECHNOLOGY RE2 SEARCH CENTER.— 

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

4 a Health Information Technology Research Center 

5 (in this section referred to as the ‘Center’) to pro6 vide technical assistance and develop or recognize 

7 best practices to support and accelerate efforts to 

8 adopt, implement, and effectively utilize health infor9 mation technology that allows for the electronic ex10 change and use of information in compliance with 

11 standards, implementation specifications, and certifi12 cation criteria adopted under section 3004. 

13 ‘‘(2) INPUT.—The Center shall incorporate 

14 input from— 

15 ‘‘(A) other Federal agencies with dem16 onstrated experience and expertise in informa17 tion technology services such as the National 

18 Institute of Standards and Technology; 

19 ‘‘(B) users of health information tech20 nology, such as providers and their support and 

21 clerical staff and others involved in the care and 

22 care coordination of patients, from the health 

23 care and health information technology indus24 try; and 

25 ‘‘(C) others as appropriate. 


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1 ‘‘(3) PURPOSES.—The purposes of the Center 

2 are to— 

3 ‘‘(A) provide a forum for the exchange of 

4 knowledge and experience; 

5 ‘‘(B) accelerate the transfer of lessons 

6 learned from existing public and private sector 

7 initiatives, including those currently receiving 

8 Federal financial support; 

9 ‘‘(C) assemble, analyze, and widely dis10 seminate evidence and experience related to the 

11 adoption, implementation, and effective use of 

12 health information technology that allows for 

13 the electronic exchange and use of information 

14 including through the regional centers described 

15 in subsection (c); 

16 ‘‘(D) provide technical assistance for the 

17 establishment and evaluation of regional and 

18 local health information networks to facilitate 

19 the electronic exchange of information across 

20 health care settings and improve the quality of 

21 health care; 

22 ‘‘(E) provide technical assistance for the 

23 development and dissemination of solutions to 

24 barriers to the exchange of electronic health in25 formation; and 


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1 ‘‘(F) learn about effective strategies to 

2 adopt and utilize health information technology 

3 in medically underserved communities. 

4 ‘‘(c) HEALTH INFORMATION TECHNOLOGY RE5 GIONAL EXTENSION CENTERS.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall provide 

7 assistance for the creation and support of regional 

8 centers (in this subsection referred to as ‘regional 

9 centers’) to provide technical assistance and dissemi10 nate best practices and other information learned 

11 from the Center to support and accelerate efforts to 

12 adopt, implement, and effectively utilize health infor13 mation technology that allows for the electronic ex14 change and use of information in compliance with 

15 standards, implementation specifications, and certifi16 cation criteria adopted under section 3004. Activities 

17 conducted under this subsection shall be consistent 

18 with the strategic plan developed by the National 

19 Coordinator, (and, as available) under section 3001. 

20 ‘‘(2) AFFILIATION.—Regional centers shall be 

21 affiliated with any United States-based nonprofit in22 stitution or organization, or group thereof, that ap23 plies and is awarded financial assistance under this 

24 section. Individual awards shall be decided on the 

25 basis of merit. 


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1 ‘‘(3) OBJECTIVE.—The objective of the regional 

2 centers is to enhance and promote the adoption of 

3 health information technology through— 

4 ‘‘(A) assistance with the implementation, 

5 effective use, upgrading, and ongoing mainte6 nance of health information technology, includ7 ing electronic health records, to healthcare pro8 viders nationwide; 

9 ‘‘(B) broad participation of individuals 

10 from industry, universities, and State govern11 ments; 

12 ‘‘(C) active dissemination of best practices 

13 and research on the implementation, effective 

14 use, upgrading, and ongoing maintenance of 

15 health information technology, including elec16 tronic health records, to health care providers 

17 in order to improve the quality of healthcare 

18 and protect the privacy and security of health 

19 information; 

20 ‘‘(D) participation, to the extent prac21 ticable, in health information exchanges; 

22 ‘‘(E) utilization, when appropriate, of the 

23 expertise and capability that exists in Federal 

24 agencies other than the Department; and 


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1 ‘‘(F) integration of health information 

2 technology, including electronic health records, 

3 into the initial and ongoing training of health 

4 professionals and others in the healthcare in5 dustry that would be instrumental to improving 

6 the quality of healthcare through the smooth 

7 and accurate electronic use and exchange of 

8 health information. 

9 ‘‘(4) REGIONAL ASSISTANCE.—Each regional 

10 center shall aim to provide assistance and education 

11 to all providers in a region, but shall prioritize any 

12 direct assistance first to the following: 

13 ‘‘(A) Public or not-for-profit hospitals or 

14 critical access hospitals. 

15 ‘‘(B) Federally qualified health centers (as 

16 defined in section 1861(aa)(4) of the Social Se17 curity Act). 

18 ‘‘(C) Entities that are located in rural and 

19 other areas that serve uninsured, underinsured, 

20 and medically underserved individuals (regard21 less of whether such area is urban or rural). 

22 ‘‘(D) Individual or small group practices 

23 (or a consortium thereof) that are primarily fo24 cused on primary care. 


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1 ‘‘(5) FINANCIAL SUPPORT.—The Secretary may 

2 provide financial support to any regional center cre3 ated under this subsection for a period not to exceed 

4 four years. The Secretary may not provide more 

5 than 50 percent of the capital and annual operating 

6 and maintenance funds required to create and main7 tain such a center, except in an instance of national 

8 economic conditions which would render this cost9 share requirement detrimental to the program and 

10 upon notification to Congress as to the justification 

11 to waive the cost-share requirement. 

12 ‘‘(6) NOTICE OF PROGRAM DESCRIPTION AND

13 AVAILABILITY OF FUNDS.—The Secretary shall pub14 lish in the Federal Register, not later than 90 days 

15 after the date of the enactment of this title, a draft 

16 description of the program for establishing regional 

17 centers under this subsection. Such description shall 

18 include the following: 

19 ‘‘(A) A detailed explanation of the program 

20 and the programs goals. 

21 ‘‘(B) Procedures to be followed by the ap22 plicants. 

23 ‘‘(C) Criteria for determining qualified ap24 plicants. 


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1 ‘‘(D) Maximum support levels expected to 

2 be available to centers under the program. 

3 ‘‘(7) APPLICATION REVIEW.—The Secretary 

4 shall subject each application under this subsection 

5 to merit review. In making a decision whether to ap6 prove such application and provide financial support, 

7 the Secretary shall consider at a minimum the mer8 its of the application, including those portions of the 

9 application regarding— 

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

11 assistance under this subsection and utilization 

12 of health information technology appropriate to 

13 the needs of particular categories of health care 

14 providers; 

15 ‘‘(B) the types of service to be provided to 

16 health care providers; 

17 ‘‘(C) geographical diversity and extent of 

18 service area; and 

19 ‘‘(D) the percentage of funding and 

20 amount of in-kind commitment from other 

21 sources. 

22 ‘‘(8) BIENNIAL EVALUATION.—Each regional 

23 center which receives financial assistance under this 

24 subsection shall be evaluated biennially by an evalua25 tion panel appointed by the Secretary. Each evaluaVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00449 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 tion panel shall be composed of private experts, none 

2 of whom shall be connected with the center involved, 

3 and of Federal officials. Each evaluation panel shall 

4 measure the involved center’s performance against 

5 the objective specified in paragraph (3). The Sec6 retary shall not continue to provide funding to a re7 gional center unless its evaluation is overall positive. 

8 ‘‘(9) CONTINUING SUPPORT.—After the second 

9 year of assistance under this subsection, a regional 

10 center may receive additional support under this 

11 subsection if it has received positive evaluations and 

12 a finding by the Secretary that continuation of Fed13 eral funding to the center was in the best interest 

14 of provision of health information technology exten15 sion services. 

16 ‘‘SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFOR17 MATION TECHNOLOGY. 

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

19 the National Coordinator, shall establish a program in ac20 cordance with this section to facilitate and expand the 

21 electronic movement and use of health information among 

22 organizations according to nationally recognized stand23 ards. 

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

25 a grant to a State or qualified State-designated entity (as 


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1 described in subsection (f)) that submits an application 

2 to the Secretary at such time, in such manner, and con3 taining such information as the Secretary may specify, for 

4 the purpose of planning activities described in subsection 

5 (d). 

6 ‘‘(c) IMPLEMENTATION GRANTS.—The Secretary 

7 may award a grant to a State or qualified State designated 

8 entity that— 

9 ‘‘(1) has submitted, and the Secretary has ap10 proved, a plan described in subsection (e) (regardless 

11 of whether such plan was prepared using amounts 

12 awarded under subsection (b); and 

13 ‘‘(2) submits an application at such time, in 

14 such manner, and containing such information as 

15 the Secretary may specify. 

16 ‘‘(d) USE OF FUNDS.—Amounts received under a 

17 grant under subsection (c) shall be used to conduct activi18 ties to facilitate and expand the electronic movement and 

19 use of health information among organizations according 

20 to nationally recognized standards through activities that 

21 include— 

22 ‘‘(1) enhancing broad and varied participation 

23 in the authorized and secure nationwide electronic 

24 use and exchange of health information; 


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1 ‘‘(2) identifying State or local resources avail2 able towards a nationwide effort to promote health 

3 information technology; 

4 ‘‘(3) complementing other Federal grants, pro5 grams, and efforts towards the promotion of health 

6 information technology; 

7 ‘‘(4) providing technical assistance for the de8 velopment and dissemination of solutions to barriers 

9 to the exchange of electronic health information; 

10 ‘‘(5) promoting effective strategies to adopt and 

11 utilize health information technology in medically 

12 underserved communities; 

13 ‘‘(6) assisting patients in utilizing health infor14 mation technology; 

15 ‘‘(7) encouraging clinicians to work with Health 

16 Information Technology Regional Extension Centers 

17 as described in section 3012, to the extent they are 

18 available and valuable; 

19 ‘‘(8) supporting public health agencies’ author20 ized use of and access to electronic health informa21 tion; 

22 ‘‘(9) promoting the use of electronic health 

23 records for quality improvement including through 

24 quality measures reporting; and 


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1 ‘‘(10) such other activities as the Secretary may 

2 specify. 

3 ‘‘(e) PLAN.— 

4 ‘‘(1) IN GENERAL.—A plan described in this 

5 subsection is a plan that describes the activities to 

6 be carried out by a State or by the qualified State7 designated entity within such State to facilitate and 

8 expand the electronic movement and use of health 

9 information among organizations according to na10 tionally recognized standards and implementation 

11 specifications. 

12 ‘‘(2) REQUIRED ELEMENTS.—A plan described 

13 in paragraph (1) shall— 

14 ‘‘(A) be pursued in the public interest; 

15 ‘‘(B) be consistent with the strategic plan 

16 developed by the National Coordinator, (and, as 

17 available) under section 3001; 

18 ‘‘(C) include a description of the ways the 

19 State or qualified State-designated entity will 

20 carry out the activities described in subsection 

21 (b); and 

22 ‘‘(D) contain such elements as the Sec23 retary may require. 


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1 ‘‘(f) QUALIFIED STATE-DESIGNATED ENTITY.—For 

2 purposes of this section, to be a qualified State-designated 

3 entity, with respect to a State, an entity shall— 

4 ‘‘(1) be designated by the State as eligible to 

5 receive awards under this section; 

6 ‘‘(2) be a not-for-profit entity with broad stake7 holder representation on its governing board; 

8 ‘‘(3) demonstrate that one of its principal goals 

9 is to use information technology to improve health 

10 care quality and efficiency through the authorized 

11 and secure electronic exchange and use of health in12 formation; 

13 ‘‘(4) adopt nondiscrimination and conflict of in14 terest policies that demonstrate a commitment to 

15 open, fair, and nondiscriminatory participation by 

16 stakeholders; and 

17 ‘‘(5) conform to such other requirements as the 

18 Secretary may establish. 

19 ‘‘(g) REQUIRED CONSULTATION.—In carrying out 

20 activities described in subsections (b) and (c), a State or 

21 qualified State-designated entity shall consult with and 

22 consider the recommendations of— 

23 ‘‘(1) health care providers (including providers 

24 that provide services to low income and underserved 

25 populations); 


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1 ‘‘(2) health plans; 

2 ‘‘(3) patient or consumer organizations that 

3 represent the population to be served; 

4 ‘‘(4) health information technology vendors; 

5 ‘‘(5) health care purchasers and employers; 

6 ‘‘(6) public health agencies; 

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

8 colleges; 

9 ‘‘(8) clinical researchers; 

10 ‘‘(9) other users of health information tech11 nology such as the support and clerical staff of pro12 viders and others involved in the care and care co13 ordination of patients; and 

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

15 appropriate by the Secretary. 

16 ‘‘(h) CONTINUOUS IMPROVEMENT.—The Secretary 

17 shall annually evaluate the activities conducted under this 

18 section and shall, in awarding grants under this section, 

19 implement the lessons learned from such evaluation in a 

20 manner so that awards made subsequent to each such 

21 evaluation are made in a manner that, in the determina22 tion of the Secretary, will lead towards the greatest im23 provement in quality of care, decrease in costs, and the 

24 most effective authorized and secure electronic exchange 

25 of health information. 


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1 ‘‘(i) REQUIRED MATCH.— 

2 ‘‘(1) IN GENERAL.—For a fiscal year (begin3 ning with fiscal year 2011), the Secretary may not 

4 make a grant under this section to a State unless 

5 the State agrees to make available non-Federal con6 tributions (which may include in-kind contributions) 

7 toward the costs of a grant awarded under sub8 section (c) in an amount equal to— 

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

10 for each $10 of Federal funds provided under 

11 the grant; 

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

13 for each $7 of Federal funds provided under 

14 the grant; and 

15 ‘‘(C) for fiscal year 2013 and each subse16 quent fiscal year, not less than $1 for each $3 

17 of Federal funds provided under the grant. 

18 ‘‘(2) AUTHORITY TO REQUIRE STATE MATCH

19 FOR FISCAL YEARS BEFORE FISCAL YEAR 2011.—For 

20 any fiscal year during the grant program under this 

21 section before fiscal year 2011, the Secretary may 

22 determine the extent to which there shall be required 

23 a non-Federal contribution from a State receiving a 

24 grant under this section. 


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

2 TRIBES FOR THE DEVELOPMENT OF LOAN 

3 PROGRAMS TO FACILITATE THE WIDE4 SPREAD ADOPTION OF CERTIFIED EHR TECH5 NOLOGY. 

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

7 award competitive grants to eligible entities for the estab8 lishment of programs for loans to health care providers 

9 to conduct the activities described in subsection (e). 

10 ‘‘(b) ELIGIBLE ENTITY DEFINED.—For purposes of 

11 this subsection, the term ‘eligible entity’ means a State 

12 or Indian tribe (as defined in the Indian Self-Determina13 tion and Education Assistance Act) that— 

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

15 application at such time, in such manner, and con16 taining such information as the National Coordi17 nator may require; 

18 ‘‘(2) submits to the National Coordinator a 

19 strategic plan in accordance with subsection (d) and 

20 provides to the National Coordinator assurances that 

21 the entity will update such plan annually in accord22 ance with such subsection; 

23 ‘‘(3) provides assurances to the National Coor24 dinator that the entity will establish a Loan Fund 

25 in accordance with subsection (c); 


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1 ‘‘(4) provides assurances to the National Coor2 dinator that the entity will not provide a loan from 

3 the Loan Fund to a health care provider unless the 

4 provider agrees to— 

5 ‘‘(A) submit reports on quality measures 

6 adopted by the Federal Government (by not 

7 later than 90 days after the date on which such 

8 measures are adopted), to— 

9 ‘‘(i) the Administrator of the Centers 

10 for Medicare & Medicaid Services (or his 

11 or her designee), in the case of an entity 

12 participating in the Medicare program 

13 under title XVIII of the Social Security 

14 Act or the Medicaid program under title 

15 XIX of such Act; or 

16 ‘‘(ii) the Secretary in the case of other 

17 entities; 

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

19 Secretary (through criteria established by the 

20 Secretary) that any certified EHR technology 

21 purchased, improved, or otherwise financially 

22 supported under a loan under this section is 

23 used to exchange health information in a man24 ner that, in accordance with law and standards 

25 (as adopted under section 3004) applicable to 


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1 the exchange of information, improves the qual2 ity of health care, such as promoting care co3 ordination; and 

4 ‘‘(C) comply with such other requirements 

5 as the entity or the Secretary may require; 

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

7 providers involved intend to maintain and sup8 port the certified EHR technology over time; 

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

10 providers involved intend to maintain and sup11 port the certified EHR technology that would 

12 be purchased with such loan, including the type 

13 of resources expected to be involved and any 

14 such other information as the State or Indian 

15 Tribe, respectively, may require; and 

16 ‘‘(5) agrees to provide matching funds in ac17 cordance with subsection (h). 

18 ‘‘(c) ESTABLISHMENT OF FUND.—For purposes of 

19 subsection (b)(3), an eligible entity shall establish a cer20 tified EHR technology loan fund (referred to in this sub21 section as a ‘Loan Fund’) and comply with the other re22 quirements contained in this section. A grant to an eligible 

23 entity under this section shall be deposited in the Loan 

24 Fund established by the eligible entity. No funds author25 ized by other provisions of this title to be used for other 


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1 purposes specified in this title shall be deposited in any 

2 Loan Fund. 

3 ‘‘(d) STRATEGIC PLAN.— 

4 ‘‘(1) IN GENERAL.—For purposes of subsection 

5 (b)(2), a strategic plan of an eligible entity under 

6 this subsection shall identify the intended uses of 

7 amounts available to the Loan Fund of such entity. 

8 ‘‘(2) CONTENTS.—A strategic plan under para9 graph (1), with respect to a Loan Fund of an eligi10 ble entity, shall include for a year the following: 

11 ‘‘(A) A list of the projects to be assisted 

12 through the Loan Fund during such year. 

13 ‘‘(B) A description of the criteria and 

14 methods established for the distribution of 

15 funds from the Loan Fund during the year. 

16 ‘‘(C) A description of the financial status 

17 of the Loan Fund as of the date of submission 

18 of the plan. 

19 ‘‘(D) The short-term and long-term goals 

20 of the Loan Fund. 

21 ‘‘(e) USE OF FUNDS.—Amounts deposited in a Loan 

22 Fund, including loan repayments and interest earned on 

23 such amounts, shall be used only for awarding loans or 

24 loan guarantees, making reimbursements described in sub25 section (g)(4)(A), or as a source of reserve and security 


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1 for leveraged loans, the proceeds of which are deposited 

2 in the Loan Fund established under subsection (c). Loans 

3 under this section may be used by a health care provider 

4 to— 

5 ‘‘(1) facilitate the purchase of certified EHR 

6 technology; 

7 ‘‘(2) enhance the utilization of certified EHR 

8 technology; 

9 ‘‘(3) train personnel in the use of such tech10 nology; or 

11 ‘‘(4) improve the secure electronic exchange of 

12 health information. 

13 ‘‘(f) TYPES OF ASSISTANCE.—Except as otherwise 

14 limited by applicable State law, amounts deposited into a 

15 Loan Fund under this section may only be used for the 

16 following: 

17 ‘‘(1) To award loans that comply with the fol18 lowing: 

19 ‘‘(A) The interest rate for each loan shall 

20 not exceed the market interest rate. 

21 ‘‘(B) The principal and interest payments 

22 on each loan shall commence not later than 1 

23 year after the date the loan was awarded, and 

24 each loan shall be fully amortized not later than 

25 10 years after the date of the loan. 


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1 ‘‘(C) The Loan Fund shall be credited with 

2 all payments of principal and interest on each 

3 loan awarded from the Loan Fund. 

4 ‘‘(2) To guarantee, or purchase insurance for, 

5 a local obligation (all of the proceeds of which fi6 nance a project eligible for assistance under this 

7 subsection) if the guarantee or purchase would im8 prove credit market access or reduce the interest 

9 rate applicable to the obligation involved. 

10 ‘‘(3) As a source of revenue or security for the 

11 payment of principal and interest on revenue or gen12 eral obligation bonds issued by the eligible entity if 

13 the proceeds of the sale of the bonds will be depos14 ited into the Loan Fund. 

15 ‘‘(4) To earn interest on the amounts deposited 

16 into the Loan Fund. 

17 ‘‘(5) To make reimbursements described in sub18 section (g)(4)(A). 

19 ‘‘(g) ADMINISTRATION OF LOAN FUNDS.— 

20 ‘‘(1) COMBINED FINANCIAL ADMINISTRATION.— 

21 An eligible entity may (as a convenience and to 

22 avoid unnecessary administrative costs) combine, in 

23 accordance with applicable State law, the financial 

24 administration of a Loan Fund established under 

25 this subsection with the financial administration of 


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1 any other revolving fund established by the entity if 

2 otherwise not prohibited by the law under which the 

3 Loan Fund was established. 

4 ‘‘(2) COST OF ADMINISTERING FUND.—Each el5 igible entity may annually use not to exceed 4 per6 cent of the funds provided to the entity under a 

7 grant under this section to pay the reasonable costs 

8 of the administration of the programs under this 

9 section, including the recovery of reasonable costs 

10 expended to establish a Loan Fund which are in11 curred after the date of the enactment of this title. 

12 ‘‘(3) GUIDANCE AND REGULATIONS.—The Na13 tional Coordinator shall publish guidance and pro14 mulgate regulations as may be necessary to carry 

15 out the provisions of this section, including— 

16 ‘‘(A) provisions to ensure that each eligible 

17 entity commits and expends funds allotted to 

18 the entity under this section as efficiently as 

19 possible in accordance with this title and appli20 cable State laws; and 

21 ‘‘(B) guidance to prevent waste, fraud, and 

22 abuse. 

23 ‘‘(4) PRIVATE SECTOR CONTRIBUTIONS.— 

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1 tions from private sector entities, except that 

2 such entities may not specify the recipient or 

3 recipients of any loan issued under this sub4 section. An eligible entity may agree to reim5 burse a private sector entity for any contribu6 tion made under this subparagraph, except that 

7 the amount of such reimbursement may not be 

8 greater than the principal amount of the con9 tribution made. 

10 ‘‘(B) AVAILABILITY OF INFORMATION.— 

11 An eligible entity shall make publicly available 

12 the identity of, and amount contributed by, any 

13 private sector entity under subparagraph (A) 

14 and may issue letters of commendation or make 

15 other awards (that have no financial value) to 

16 any such entity. 

17 ‘‘(h) MATCHING REQUIREMENTS.— 

18 ‘‘(1) IN GENERAL.—The National Coordinator 

19 may not make a grant under subsection (a) to an el20 igible entity unless the entity agrees to make avail21 able (directly or through donations from public or 

22 private entities) non-Federal contributions in cash to 

23 the costs of carrying out the activities for which the 

24 grant is awarded in an amount equal to not less 


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1 than $1 for each $5 of Federal funds provided under 

2 the grant. 

3 ‘‘(2) DETERMINATION OF AMOUNT OF NON4 FEDERAL CONTRIBUTION.—In determining the 

5 amount of non-Federal contributions that an eligible 

6 entity has provided pursuant to subparagraph (A), 

7 the National Coordinator may not include any 

8 amounts provided to the entity by the Federal Gov9 ernment. 

10 ‘‘(i) EFFECTIVE DATE.—The Secretary may not 

11 make an award under this section prior to January 1, 

12 2010. 

13 ‘‘SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE IN14 FORMATION TECHNOLOGY INTO CLINICAL 

15 EDUCATION. 

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

17 under this section to carry out demonstration projects to 

18 develop academic curricula integrating certified EHR 

19 technology in the clinical education of health professionals. 

20 Such awards shall be made on a competitive basis and 

21 pursuant to peer review. 

22 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant 

23 under subsection (a), an entity shall— 


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1 ‘‘(1) submit to the Secretary an application at 

2 such time, in such manner, and containing such in3 formation as the Secretary may require; 

4 ‘‘(2) submit to the Secretary a strategic plan 

5 for integrating certified EHR technology in the clin6 ical education of health professionals to reduce med7 ical errors and enhance health care quality; 

8 ‘‘(3) be— 

9 ‘‘(A) a school of medicine, osteopathic 

10 medicine, dentistry, or pharmacy, a graduate 

11 program in behavioral or mental health, or any 

12 other graduate health professions school; 

13 ‘‘(B) a graduate school of nursing or phy14 sician assistant studies; 

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

16 described in subparagraph (A) or (B); or 

17 ‘‘(D) an institution with a graduate med18 ical education program in medicine, osteopathic 

19 medicine, dentistry, pharmacy, nursing, or phy20 sician assistance studies; 

21 ‘‘(4) provide for the collection of data regarding 

22 the effectiveness of the demonstration project to be 

23 funded under the grant in improving the safety of 

24 patients, the efficiency of health care delivery, and 

25 in increasing the likelihood that graduates of the 


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1 grantee will adopt and incorporate certified EHR 

2 technology, in the delivery of health care services; 

3 and 

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

5 subsection (d). 

6 ‘‘(c) USE OF FUNDS.— 

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

8 under subsection (a), an eligible entity shall— 

9 ‘‘(A) use grant funds in collaboration with 

10 2 or more disciplines; and 

11 ‘‘(B) use grant funds to integrate certified 

12 EHR technology into community-based clinical 

13 education. 

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

15 use amounts received under a grant under sub16 section (a) to purchase hardware, software, or serv17 ices. 

18 ‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 

19 provide more than 50 percent of the costs of any activity 

20 for which assistance is provided under subsection (a), ex21 cept in an instance of national economic conditions which 

22 would render the cost-share requirement under this sub23 section detrimental to the program and upon notification 

24 to Congress as to the justification to waive the cost-share 

25 requirement. 


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1 ‘‘(e) EVALUATION.—The Secretary shall take such 

2 action as may be necessary to evaluate the projects funded 

3 under this section and publish, make available, and dis4 seminate the results of such evaluations on as wide a basis 

5 as is practicable. 

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

7 of enactment of this title, and annually thereafter, the Sec8 retary shall submit to the Committee on Health, Edu9 cation, Labor, and Pensions and the Committee on Fi10 nance of the Senate, and the Committee on Energy and 

11 Commerce of the House of Representatives a report 

12 that— 

13 ‘‘(1) describes the specific projects established 

14 under this section; and 

15 ‘‘(2) contains recommendations for Congress 

16 based on the evaluation conducted under subsection 

17 (e). 

18 ‘‘SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS 

19 ON HEALTH CARE. 

20 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

21 with the Director of the National Science Foundation, 

22 shall provide assistance to institutions of higher education 

23 (or consortia thereof) to establish or expand medical 

24 health informatics education programs, including certifi25 cation, undergraduate, and masters degree programs, for 


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1 both health care and information technology students to 

2 ensure the rapid and effective utilization and development 

3 of health information technologies (in the United States 

4 health care infrastructure). 

5 ‘‘(b) ACTIVITIES.—Activities for which assistance 

6 may be provided under subsection (a) may include the fol7 lowing: 

8 ‘‘(1) Developing and revising curricula in med9 ical health informatics and related disciplines. 

10 ‘‘(2) Recruiting and retaining students to the 

11 program involved. 

12 ‘‘(3) Acquiring equipment necessary for student 

13 instruction in these programs, including the installa14 tion of testbed networks for student use. 

15 ‘‘(4) Establishing or enhancing bridge programs 

16 in the health informatics fields between community 

17 colleges and universities. 

18 ‘‘(c) PRIORITY.—In providing assistance under sub19 section (a), the Secretary shall give preference to the fol20 lowing: 

21 ‘‘(1) Existing education and training programs. 

22 ‘‘(2) Programs designed to be completed in less 

23 than six months. 

24 ‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 

25 provide more than 50 percent of the costs of any activity 


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1 for which assistance is provided under subsection (a), ex2 cept in an instance of national economic conditions which 

3 would render the cost-share requirement under this sub4 section detrimental to the program and upon notification 

5 to Congress as to the justification to waive the cost-share 

6 requirement. 

7 ‘‘SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS. 

8 ‘‘(a) REPORTS.—The Secretary may require that an 

9 entity receiving assistance under this subtitle shall submit 

10 to the Secretary, not later than the date that is 1 year 

11 after the date of receipt of such assistance, a report that 

12 includes— 

13 ‘‘(1) an analysis of the effectiveness of the ac14 tivities for which the entity receives such assistance, 

15 as compared to the goals for such activities; and 

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

17 health care quality and safety. 

18 ‘‘(b) REQUIREMENT TO IMPROVE QUALITY OF CARE

19 AND DECREASE IN COSTS.—The National Coordinator 

20 shall annually evaluate the activities conducted under this 

21 subtitle and shall, in awarding grants, implement the les22 sons learned from such evaluation in a manner so that 

23 awards made subsequent to each such evaluation are made 

24 in a manner that, in the determination of the National 


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1 Coordinator, will result in the greatest improvement in the 

2 quality and efficiency of health care. 

3 ‘‘SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS. 

4 ‘‘For the purposes of carrying out this subtitle, there 

5 is authorized to be appropriated such sums as may be nec6 essary for each of the fiscal years 2009 through 2013. 

7 Amounts so appropriated shall remain available until ex8 pended.’’. 

9 PART II—MEDICARE PROGRAM 

10 SEC. 4311. INCENTIVES FOR ELIGIBLE PROFESSIONALS. 

11 (a) INCENTIVE PAYMENTS.—Section 1848 of the So12 cial Security Act (42 U.S.C. 1395w–4) is amended by add13 ing at the end the following new subsection: 

14 ‘‘(o) INCENTIVES FOR ADOPTION AND MEANINGFUL

15 USE OF CERTIFIED EHR TECHNOLOGY.— 

16 ‘‘(1) INCENTIVE PAYMENTS.— 

17 ‘‘(A) IN GENERAL.—Subject to the suc18 ceeding subparagraphs of this paragraph, with 

19 respect to covered professional services fur20 nished by an eligible professional during a pay21 ment year (as defined in subparagraph (E)), if 

22 the eligible professional is a meaningful EHR 

23 user (as determined under paragraph (2)) for 

24 the reporting period with respect to such year, 

25 in addition to the amount otherwise paid under 


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1 this part, there also shall be paid to the eligible 

2 professional (or to an employer or facility in the 

3 cases described in clause (A) of section 

4 1842(b)(6)), from the Federal Supplementary 

5 Medical Insurance Trust Fund established 

6 under section 1841 an amount equal to 75 per7 cent of the Secretary’s estimate (based on 

8 claims submitted not later than 2 months after 

9 the end of the payment year) of the allowed 

10 charges under this part for all such covered 

11 professional services furnished by the eligible 

12 professional during such year. 

13 ‘‘(B) LIMITATIONS ON AMOUNTS OF IN14 CENTIVE PAYMENTS.— 

15 ‘‘(i) IN GENERAL.—In no case shall 

16 the amount of the incentive payment pro17 vided under this paragraph for an eligible 

18 professional for a payment year exceed the 

19 applicable amount specified under this sub20 paragraph with respect to such eligible 

21 professional and such year. 

22 ‘‘(ii) AMOUNT.—Subject to clause 

23 (iii), the applicable amount specified in this 

24 subparagraph for an eligible professional is 

25 as follows: 


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1 ‘‘(I) For the first payment year 

2 for such professional, $15,000. 

3 ‘‘(II) For the second payment 

4 year for such professional, $12,000. 

5 ‘‘(III) For the third payment 

6 year for such professional, $8,000. 

7 ‘‘(IV) For the fourth payment 

8 year for such professional, $4,000. 

9 ‘‘(V) For the fifth payment year 

10 for such professional, $2,000. 

11 ‘‘(VI) For any succeeding pay12 ment year for such professional, $0. 

13 ‘‘(iii) PHASE DOWN FOR ELIGIBLE

14 PROFESSIONALS FIRST ADOPTING EHR

15 AFTER 2013.—If the first payment year for 

16 an eligible professional is after 2013, then 

17 the amount specified in this subparagraph 

18 for a payment year for such professional is 

19 the same as the amount specified in clause 

20 (ii) for such payment year for an eligible 

21 professional whose first payment year is 

22 2013. If the first payment year for an eli23 gible professional is after 2015 then the 

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1 paragraph for such professional for such 

2 year and any subsequent year shall be $0. 

3 ‘‘(C) NON-APPLICATION TO HOSPITAL4 BASED ELIGIBLE PROFESSIONALS.— 

5 ‘‘(i) IN GENERAL.—No incentive pay6 ment may be made under this paragraph 

7 in the case of a hospital-based eligible pro8 fessional. 

9 ‘‘(ii) HOSPITAL-BASED ELIGIBLE PRO10 FESSIONAL.—For purposes of clause (i), 

11 the term ‘hospital-based eligible profes12 sional’ means, with respect to covered pro13 fessional services furnished by an eligible 

14 professional during the reporting period for 

15 a payment year, an eligible professional, 

16 such as a pathologist, anesthesiologist, or 

17 emergency physician, who furnishes sub18 stantially all of such services in a hospital 

19 setting (whether inpatient or outpatient) 

20 and through the use of the facilities and 

21 equipment, including computer equipment, 

22 of the hospital. 

23 ‘‘(D) PAYMENT.— 

24 ‘‘(i) FORM OF PAYMENT.—The pay25 ment under this paragraph may be in the 


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1 form of a single consolidated payment or 

2 in the form of such periodic installments 

3 as the Secretary may specify. 

4 ‘‘(ii) COORDINATION OF APPLICATION

5 OF LIMITATION FOR PROFESSIONALS IN

6 DIFFERENT PRACTICES.—In the case of an 

7 eligible professional furnishing covered pro8 fessional services in more than one practice 

9 (as specified by the Secretary), the Sec10 retary shall establish rules to coordinate 

11 the incentive payments, including the ap12 plication of the limitation on amounts of 

13 such incentive payments under this para14 graph, among such practices. 

15 ‘‘(iii) COORDINATION WITH MED16 ICAID.—The Secretary shall seek, to the 

17 maximum extent practicable, to avoid du18 plicative requirements from Federal and 

19 State Governments to demonstrate mean20 ingful use of certified EHR technology 

21 under this title and title XIX. The Sec22 retary may also adjust the reporting peri23 ods under such title and such subsections 

24 in order to carry out this clause. 

25 ‘‘(E) PAYMENT YEAR DEFINED.— 


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1 ‘‘(i) IN GENERAL.—For purposes of 

2 this subsection, the term ‘payment year’ 

3 means a year beginning with 2011. 

4 ‘‘(ii) FIRST, SECOND, ETC. PAYMENT

5 YEAR.—The term ‘first payment year’ 

6 means, with respect to covered professional 

7 services furnished by an eligible profes8 sional, the first year for which an incentive 

9 payment is made for such services under 

10 this subsection. The terms ‘second pay11 ment year’, ‘third payment year’, ‘fourth 

12 payment year’, and ‘fifth payment year’ 

13 mean, with respect to covered professional 

14 services furnished by such eligible profes15 sional, each successive year immediately 

16 following the first payment year for such 

17 professional. 

18 ‘‘(2) MEANINGFUL EHR USER.— 

19 ‘‘(A) IN GENERAL.—For purposes of para20 graph (1), an eligible professional shall be 

21 treated as a meaningful EHR user for a report22 ing period for a payment year (or, for purposes 

23 of subsection (a)(7), for a reporting period 

24 under such subsection for a year) if each of the 

25 following requirements is met: 


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1 ‘‘(i) MEANINGFUL USE OF CERTIFIED

2 EHR TECHNOLOGY.—The eligible profes3 sional demonstrates to the satisfaction of 

4 the Secretary, in accordance with subpara5 graph (C)(i), that during such period the 

6 professional is using certified EHR tech7 nology in a meaningful manner, which 

8 shall include the use of electronic pre9 scribing as determined to be appropriate 

10 by the Secretary. 

11 ‘‘(ii) INFORMATION EXCHANGE.—The 

12 eligible professional demonstrates to the 

13 satisfaction of the Secretary, in accordance 

14 with subparagraph (C)(i), that during such 

15 period such certified EHR technology is 

16 connected in a manner that provides, in 

17 accordance with law and standards appli18 cable to the exchange of information, for 

19 the electronic exchange of health informa20 tion to improve the quality of health care, 

21 such as promoting care coordination. 

22 ‘‘(iii) REPORTING ON MEASURES

23 USING EHR.—Subject to subparagraph 

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1 formation for such period, in a form and 

2 manner specified by the Secretary, on such 

3 clinical quality measures and such other 

4 measures as selected by the Secretary 

5 under subparagraph (B)(i). 

6 The Secretary may provide for the use of alter7 native means for meeting the requirements of 

8 clauses (i), (ii), and (iii) in the case of an eligi9 ble professional furnishing covered professional 

10 services in a group practice (as defined by the 

11 Secretary). The Secretary shall seek to improve 

12 the use of electronic health records and health 

13 care quality over time by requiring more strin14 gent measures of meaningful use selected under 

15 this paragraph. 

16 ‘‘(B) REPORTING ON MEASURES.— 

17 ‘‘(i) SELECTION.—The Secretary shall 

18 select measures for purposes of subpara19 graph (A)(iii) but only consistent with the 

20 following: 

21 ‘‘(I) The Secretary shall provide 

22 preference to clinical quality measures 

23 that have been endorsed by the entity 

24 with a contract with the Secretary 

25 under section 1890(a). 


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1 ‘‘(II) Prior to any measure being 

2 selected under this subparagraph, the 

3 Secretary shall publish in the Federal 

4 Register such measure and provide for 

5 a period of public comment on such 

6 measure. 

7 ‘‘(ii) LIMITATION.—The Secretary 

8 may not require the electronic reporting of 

9 information on clinical quality measures 

10 under subparagraph (A)(iii) unless the 

11 Secretary has the capacity to accept the in12 formation electronically, which may be on 

13 a pilot basis. 

14 ‘‘(iii) COORDINATION OF REPORTING

15 OF INFORMATION.—In selecting such 

16 measures, and in establishing the form and 

17 manner for reporting measures under sub18 paragraph (A)(iii), the Secretary shall seek 

19 to avoid redundant or duplicative reporting 

20 otherwise required, including reporting 

21 under subsection (k)(2)(C). 

22 ‘‘(C) DEMONSTRATION OF MEANINGFUL

23 USE OF CERTIFIED EHR TECHNOLOGY AND IN24 FORMATION EXCHANGE.— 


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1 ‘‘(i) IN GENERAL.—A professional 

2 may satisfy the demonstration requirement 

3 of clauses (i) and (ii) of subparagraph (A) 

4 through means specified by the Secretary, 

5 which may include— 

6 ‘‘(I) an attestation; 

7 ‘‘(II) the submission of claims 

8 with appropriate coding (such as a 

9 code indicating that a patient encoun10 ter was documented using certified 

11 EHR technology); 

12 ‘‘(III) a survey response; 

13 ‘‘(IV) reporting under subpara14 graph (A)(iii); and 

15 ‘‘(V) other means specified by the 

16 Secretary. 

17 ‘‘(ii) USE OF PART D DATA.—Not18 withstanding sections 1860D–15(d)(2)(B) 

19 and 1860D–15(f)(2), the Secretary may 

20 use data regarding drug claims submitted 

21 for purposes of section 1860D–15 that are 

22 necessary for purposes of subparagraph 

23 (A). 

24 ‘‘(3) APPLICATION.— 


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1 ‘‘(A) PHYSICIAN REPORTING SYSTEM

2 RULES.—Paragraphs (5), (6), and (8) of sub3 section (k) shall apply for purposes of this sub4 section in the same manner as they apply for 

5 purposes of such subsection. 

6 ‘‘(B) COORDINATION WITH OTHER PAY7 MENTS.—The provisions of this subsection shall 

8 not be taken into account in applying the provi9 sions of subsection (m) of this section and of 

10 section 1833(m) and any payment under such 

11 provisions shall not be taken into account in 

12 computing allowable charges under this sub13 section. 

14 ‘‘(C) LIMITATIONS ON REVIEW.—There 

15 shall be no administrative or judicial review 

16 under section 1869, section 1878, or otherwise 

17 of the determination of any incentive payment 

18 under this subsection and the payment adjust19 ment under subsection (a)(7), including the de20 termination of a meaningful EHR user under 

21 paragraph (2), a limitation under paragraph 

22 (1)(B), and the exception under subsection 

23 (a)(7)(B). 

24 ‘‘(D) POSTING ON WEBSITE.—The Sec25 retary shall post on the Internet website of the 


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1 Centers for Medicare & Medicaid Services, in an 

2 easily understandable format, a list of the 

3 names, business addresses, and business phone 

4 numbers of the eligible professionals who are 

5 meaningful EHR users and, as determined ap6 propriate by the Secretary, of group practices 

7 receiving incentive payments under paragraph 

8 (1). 

9 ‘‘(4) CERTIFIED EHR TECHNOLOGY DEFINED.— 

10 For purposes of this section, the term ‘certified 

11 EHR technology’ means a qualified electronic health 

12 record (as defined in 3000(13) of the Public Health 

13 Service Act) that is certified pursuant to section 

14 3001(c)(5) of such Act as meeting standards adopt15 ed under section 3004 of such Act that are applica16 ble to the type of record involved (as determined by 

17 the Secretary, such as an ambulatory electronic 

18 health record for office-based physicians or an inpa19 tient hospital electronic health record for hospitals). 

20 ‘‘(5) DEFINITIONS.—For purposes of this sub21 section: 

22 ‘‘(A) COVERED PROFESSIONAL SERV23 ICES.—The term ‘covered professional services’ 

24 has the meaning given such term in subsection 

25 (k)(3). 


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1 ‘‘(B) ELIGIBLE PROFESSIONAL.—The term 

2 ‘eligible professional’ means a physician, as de3 fined in section 1861(r). 

4 ‘‘(C) REPORTING PERIOD.—The term ‘re5 porting period’ means any period (or periods), 

6 with respect to a payment year, as specified by 

7 the Secretary.’’. 

8 (b) INCENTIVE PAYMENT ADJUSTMENT.—Section 

9 1848(a) of the Social Security Act (42 U.S.C. 1395w– 

10 4(a)) is amended by adding at the end the following new 

11 paragraph: 

12 ‘‘(7) INCENTIVES FOR MEANINGFUL USE OF

13 CERTIFIED EHR TECHNOLOGY.— 

14 ‘‘(A) ADJUSTMENT.— 

15 ‘‘(i) IN GENERAL.—Subject to sub16 paragraphs (B) and (D), with respect to 

17 covered professional services furnished by 

18 an eligible professional during 2016 or any 

19 subsequent payment year, if the eligible 

20 professional is not a meaningful EHR user 

21 (as determined under subsection (o)(2)) for 

22 a reporting period for the year, the fee 

23 schedule amount for such services fur24 nished by such professional during the year 

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1 poses of determining a payment based on 

2 such amount) shall be equal to the applica3 ble percent of the fee schedule amount that 

4 would otherwise apply to such services 

5 under this subsection (determined after ap6 plication of paragraph (3) but without re7 gard to this paragraph). 

8 ‘‘(ii) APPLICABLE PERCENT.—Subject 

9 to clause (iii), for purposes of clause (i), 

10 the term ‘applicable percent’ means— 

11 ‘‘(I) for 2016, 99 percent; 

12 ‘‘(II) for 2017, 98 percent; and 

13 ‘‘(III) for 2018 and each subse14 quent year, 97 percent. 

15 ‘‘(iii) AUTHORITY TO DECREASE AP16 PLICABLE PERCENTAGE FOR 2019 AND

17 SUBSEQUENT YEARS.—For 2019 and each 

18 subsequent year, if the Secretary finds that 

19 the proportion of eligible professionals who 

20 are meaningful EHR users (as determined 

21 under subsection (o)(2)) is less than 75 

22 percent, the applicable percent shall be de23 creased by 1 percentage point from the ap24 plicable percent in the preceding year, but 


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1 in no case shall the applicable percent be 

2 less than 95 percent. 

3 ‘‘(B) SIGNIFICANT HARDSHIP EXCEP4 TION.—The Secretary may, on a case-by-case 

5 basis, exempt an eligible professional from the 

6 application of the payment adjustment under 

7 subparagraph (A) if the Secretary determines, 

8 subject to annual renewal, that compliance with 

9 the requirement for being a meaningful EHR 

10 user would result in a significant hardship, such 

11 as in the case of an eligible professional who 

12 practices in a rural area without sufficient 

13 Internet access. In no case may an eligible pro14 fessional be granted an exemption under this 

15 subparagraph for more than 5 years. 

16 ‘‘(C) APPLICATION OF PHYSICIAN REPORT17 ING SYSTEM RULES.—Paragraphs (5), (6), and 

18 (8) of subsection (k) shall apply for purposes of 

19 this paragraph in the same manner as they 

20 apply for purposes of such subsection. 

21 ‘‘(D) NON-APPLICATION TO HOSPITAL22 BASED ELIGIBLE PROFESSIONALS.—No pay23 ment adjustment may be made under subpara24 graph (A) in the case of hospital-based eligible 


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1 professionals (as defined in subsection 

2 (o)(1)(C)(ii)). 

3 ‘‘(E) DEFINITIONS.—For purposes of this 

4 paragraph: 

5 ‘‘(i) COVERED PROFESSIONAL SERV6 ICES.—The term ‘covered professional 

7 services’ has the meaning given such term 

8 in subsection (k)(3). 

9 ‘‘(ii) ELIGIBLE PROFESSIONAL.—The 

10 term ‘eligible professional’ means a physi11 cian, as defined in section 1861(r). 

12 ‘‘(iii) REPORTING PERIOD.—The term 

13 ‘reporting period’ means, with respect to a 

14 year, a period specified by the Secretary.’’. 

15 (c) APPLICATION TO CERTAIN HMO-AFFILIATED

16 ELIGIBLE PROFESSIONALS.—Section 1853 of the Social 

17 Security Act (42 U.S.C. 1395w–23) is amended by adding 

18 at the end the following new subsection: 

19 ‘‘(l) APPLICATION OF ELIGIBLE PROFESSIONAL IN20 CENTIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOP21 TION AND MEANINGFUL USE OF CERTIFIED EHR TECH22 NOLOGY.— 

23 ‘‘(1) IN GENERAL.—Subject to paragraphs (3) 

24 and (4), in the case of a qualifying MA organization, 

25 the provisions of sections 1848(o) and 1848(a)(7) 


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1 shall apply with respect to eligible professionals de2 scribed in paragraph (2) of the organization who the 

3 organization attests under paragraph (6) to be 

4 meaningful EHR users in a similar manner as they 

5 apply to eligible professionals under such sections. 

6 Incentive payments under paragraph (3) shall be 

7 made to and payment adjustments under paragraph 

8 (4) shall apply to such qualifying organizations. 

9 ‘‘(2) ELIGIBLE PROFESSIONAL DESCRIBED.— 

10 With respect to a qualifying MA organization, an eli11 gible professional described in this paragraph is an 

12 eligible professional (as defined for purposes of sec13 tion 1848(o)) who— 

14 ‘‘(A)(i) is employed by the organization; or 

15 ‘‘(ii)(I) is employed by, or is a partner of, 

16 an entity that through contract with the organi17 zation furnishes at least 80 percent of the enti18 ty’s patient care services to enrollees of such or19 ganization; and 

20 ‘‘(II) furnishes at least 80 percent of the 

21 professional services of the eligible professional 

22 to enrollees of the organization; and 

23 ‘‘(B) furnishes, on average, at least 20 

24 hours per week of patient care services. 


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1 ‘‘(3) ELIGIBLE PROFESSIONAL INCENTIVE PAY2 MENTS.— 

3 ‘‘(A) IN GENERAL.—In applying section 

4 1848(o) under paragraph (1), instead of the ad5 ditional payment amount under section 

6 1848(o)(1)(A) and subject to subparagraph 

7 (B), the Secretary may substitute an amount 

8 determined by the Secretary to the extent fea9 sible and practical to be similar to the esti10 mated amount in the aggregate that would be 

11 payable if payment for services furnished by 

12 such professionals was payable under part B in13 stead of this part. 

14 ‘‘(B) AVOIDING DUPLICATION OF PAY15 MENTS.— 

16 ‘‘(i) IN GENERAL.—If an eligible pro17 fessional described in paragraph (2) is eli18 gible for the maximum incentive payment 

19 under section 1848(o)(1)(A) for the same 

20 payment period, the payment incentive 

21 shall be made only under such section and 

22 not under this subsection. 

23 ‘‘(ii) METHODS.—In the case of an el24 igible professional described in paragraph 

25 (2) who is eligible for an incentive payment 


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1 under section 1848(o)(1)(A) but is not de2 scribed in clause (i) for the same payment 

3 period, the Secretary shall develop a proc4 ess— 

5 ‘‘(I) to ensure that duplicate pay6 ments are not made with respect to 

7 an eligible professional both under 

8 this subsection and under section 

9 1848(o)(1)(A); and 

10 ‘‘(II) to collect data from Medi11 care Advantage organizations to en12 sure against such duplicate payments. 

13 ‘‘(C) FIXED SCHEDULE FOR APPLICATION

14 OF LIMITATION ON INCENTIVE PAYMENTS FOR

15 ALL ELIGIBLE PROFESSIONALS.—In applying 

16 section 1848(o)(1)(B)(ii) under subparagraph 

17 (A), in accordance with rules specified by the 

18 Secretary, a qualifying MA organization shall 

19 specify a year (not earlier than 2011) that shall 

20 be treated as the first payment year for all eli21 gible professionals with respect to such organi22 zation. 

23 ‘‘(4) PAYMENT ADJUSTMENT.— 

24 ‘‘(A) IN GENERAL.—In applying section 

25 1848(a)(7) under paragraph (1), instead of the 


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1 payment adjustment being an applicable per2 cent of the fee schedule amount for a year 

3 under such section, subject to subparagraph 

4 (D), the payment adjustment under paragraph 

5 (1) shall be equal to the percent specified in 

6 subparagraph (B) for such year of the payment 

7 amount otherwise provided under this section 

8 for such year. 

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 percentage points 

14 by which the applicable percent (under sec15 tion 1848(a)(7)(A)(ii)) for the year is less 

16 than 100 percent; and 

17 ‘‘(ii) the Medicare physician expendi18 ture proportion specified in subparagraph 

19 (C) for the year. 

20 ‘‘(C) MEDICARE PHYSICIAN EXPENDITURE

21 PROPORTION.—The Medicare physician expend22 iture proportion under this subparagraph for a 

23 year is the Secretary’s estimate of the propor24 tion, of the expenditures under parts A and B 

25 that are not attributable to this part, that are 


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1 attributable to expenditures for physicians’ 

2 services. 

3 ‘‘(D) APPLICATION OF PAYMENT ADJUST4 MENT.—In the case that a qualifying MA orga5 nization attests that not all eligible profes6 sionals are meaningful EHR users with respect 

7 to a year, the Secretary shall apply the payment 

8 adjustment under this paragraph based on the 

9 proportion of such eligible professionals that are 

10 not meaningful EHR users for such year. 

11 ‘‘(5) QUALIFYING MA ORGANIZATION DE12 FINED.—In this subsection and subsection (m), the 

13 term ‘qualifying MA organization’ means a Medicare 

14 Advantage organization that is organized as a health 

15 maintenance organization (as defined in section 

16 2791(b)(3) of the Public Health Service Act). 

17 ‘‘(6) MEANINGFUL EHR USER ATTESTATION.— 

18 For purposes of this subsection and subsection (m), 

19 a qualifying MA organization shall submit an attes20 tation, in a form and manner specified by the Sec21 retary which may include the submission of such at22 testation as part of submission of the initial bid 

23 under section 1854(a)(1)(A)(iv), identifying— 

24 ‘‘(A) whether each eligible professional de25 scribed in paragraph (2), with respect to such 


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1 organization is a meaningful EHR user (as de2 fined in section 1848(o)(2)) for a year specified 

3 by the Secretary; and 

4 ‘‘(B) whether each eligible hospital de5 scribed in subsection (m)(1), with respect to 

6 such organization, is a meaningful EHR user 

7 (as defined in section 1886(n)(3)) for an appli8 cable period specified by the Secretary.’’. 

9 (d) CONFORMING AMENDMENTS.—Section 1853 of 

10 the Social Security Act (42 U.S.C. 1395w–23) is amend11 ed— 

12 (1) in subsection (a)(1)(A), by striking ‘‘and 

13 (i)’’ and inserting ‘‘(i), and (l)’’; 

14 (2) in subsection (c)— 

15 (A) in paragraph (1)(D)(i), by striking 

16 ‘‘section 1886(h)’’ and inserting ‘‘sections 

17 1848(o) and 1886(h)’’; and 

18 (B) in paragraph (6)(A), by inserting after 

19 ‘‘under part B,’’ the following: ‘‘excluding ex20 penditures attributable to subsections (a)(7) 

21 and (o) of section 1848,’’; and 

22 (3) in subsection (f), by inserting ‘‘and for pay23 ments under subsection (l)’’ after ‘‘with the organi24 zation’’. 


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1 (e) CONFORMING AMENDMENTS TO E-PRE2 SCRIBING.— 

3 (1) Section 1848(a)(5)(A) of the Social Security 

4 Act (42 U.S.C. 1395w–4(a)(5)(A)) is amended— 

5 (A) in clause (i), by striking ‘‘or any sub6 sequent year’’ and inserting ‘‘, 2013, 2014, or 

7 2015’’; and 

8 (B) in clause (ii), by striking ‘‘and each 

9 subsequent year’’ and inserting ‘‘and 2015’’. 

10 (2) Section 1848(m)(2) of such Act (42 U.S.C. 

11 1395w–4(m)(2)) is amended— 

12 (A) in subparagraph (A), by striking ‘‘For 

13 2009’’ and inserting ‘‘Subject to subparagraph 

14 (D), for 2009’’; and 

15 (B) by adding at the end the following new 

16 subparagraph: 

17 ‘‘(D) LIMITATION WITH RESPECT TO EHR

18 INCENTIVE PAYMENTS.—The provisions of this 

19 paragraph shall not apply to an eligible profes20 sional (or, in the case of a group practice under 

21 paragraph (3)(C), to the group practice) if, for 

22 the reporting period the eligible professional (or 

23 group practice) receives an incentive payment 

24 under subsection (o)(1)(A) with respect to a 

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1 section (o)(4)) that has the capability of elec2 tronic prescribing.’’. 

3 SEC. 4312. INCENTIVES FOR HOSPITALS. 

4 (a) INCENTIVE PAYMENT.—Section 1886 of the So5 cial Security Act (42 U.S.C. 1395ww) is amended by add6 ing at the end the following new subsection: 

7 ‘‘(n) INCENTIVES FOR ADOPTION AND MEANINGFUL

8 USE OF CERTIFIED EHR TECHNOLOGY.— 

9 ‘‘(1) IN GENERAL.—Subject to the succeeding 

10 provisions of this subsection, with respect to inpa11 tient hospital services furnished by an eligible hos12 pital during a payment year (as defined in para13 graph (2)(G)), if the eligible hospital is a meaningful 

14 EHR user (as determined under paragraph (3)) for 

15 the reporting period with respect to such year, in ad16 dition to the amount otherwise paid under this sec17 tion, there also shall be paid to the eligible hospital, 

18 from the Federal Hospital Insurance Trust Fund es19 tablished under section 1817, an amount equal to 

20 the applicable amount specified in paragraph (2)(A) 

21 for the hospital for such payment year. 

22 ‘‘(2) PAYMENT AMOUNT.— 

23 ‘‘(A) IN GENERAL.—Subject to the suc24 ceeding subparagraphs of this paragraph, the 

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1 graph for an eligible hospital for a payment 

2 year is equal to the product of the following: 

3 ‘‘(i) INITIAL AMOUNT.—The sum of— 

4 ‘‘(I) the base amount specified in 

5 subparagraph (B); plus 

6 ‘‘(II) the discharge related 

7 amount specified in subparagraph (C) 

8 for a 12-month period selected by the 

9 Secretary with respect to such pay10 ment year. 

11 ‘‘(ii) MEDICARE SHARE.—The Medi12 care share as specified in subparagraph 

13 (D) for the hospital for a period selected 

14 by the Secretary with respect to such pay15 ment year. 

16 ‘‘(iii) TRANSITION FACTOR.—The 

17 transition factor specified in subparagraph 

18 (E) for the hospital for the payment year. 

19 ‘‘(B) BASE AMOUNT.—The base amount 

20 specified in this subparagraph is $2,000,000. 

21 ‘‘(C) DISCHARGE RELATED AMOUNT.—The 

22 discharge related amount specified in this sub23 paragraph for a 12-month period selected by 

24 the Secretary shall be determined as the sum of 

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1 gardless of any source of payment) for the pe2 riod, for each discharge up to the 23,000th dis3 charge as follows: 

4 ‘‘(i) For the 1,150th through the 

5 23,000th discharge, $200. 

6 ‘‘(ii) For any discharge greater than 

7 the 23,000th, $0. 

8 ‘‘(D) MEDICARE SHARE.—The Medicare 

9 share specified under this subparagraph for a 

10 hospital for a period selected by the Secretary 

11 for a payment year is equal to the fraction— 

12 ‘‘(i) the numerator of which is the 

13 sum (for such period and with respect to 

14 the hospital) of— 

15 ‘‘(I) the number of inpatient-bed16 days (as established by the Secretary) 

17 which are attributable to individuals 

18 with respect to whom payment may be 

19 made under part A; and 

20 ‘‘(II) the number of inpatient21 bed-days (as so established) which are 

22 attributable to individuals who are en23 rolled with a Medicare Advantage or24 ganization under part C; and 


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1 ‘‘(ii) the denominator of which is the 

2 product of— 

3 ‘‘(I) the total number of inpa4 tient-bed-days with respect to the hos5 pital during such period; and 

6 ‘‘(II) the total amount of the hos7 pital’s charges during such period, not 

8 including any charges that are attrib9 utable to charity care (as such term is 

10 used for purposes of hospital cost re11 porting under this title), divided by 

12 the total amount of the hospital’s 

13 charges during such period. 

14 Insofar as the Secretary determines that data 

15 are not available on charity care necessary to 

16 calculate the portion of the formula specified in 

17 clause (ii)(II), the Secretary shall use data on 

18 uncompensated care and may adjust such data 

19 so as to be an appropriate proxy for charity 

20 care including a downward adjustment to elimi21 nate bad debt data from uncompensated care 

22 data. In the absence of the data necessary, with 

23 respect to a hospital, for the Secretary to com24 pute the amount described in clause (ii)(II), the 

25 amount under such clause shall be deemed to 


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1 be 1. In the absence of data, with respect to a 

2 hospital, necessary to compute the amount de3 scribed in clause (i)(II), the amount under such 

4 clause shall be deemed to be 0. 

5 ‘‘(E) TRANSITION FACTOR SPECIFIED.— 

6 ‘‘(i) IN GENERAL.—Subject to clause 

7 (ii), the transition factor specified in this 

8 subparagraph for an eligible hospital for a 

9 payment year is as follows: 

10 ‘‘(I) For the first payment year 

11 for such hospital, 1. 

12 ‘‘(II) For the second payment 

year for such hospital, 3 13 ⁄4. 

14 ‘‘(III) For the third payment 

year for such hospital, 1 15 ⁄2. 

16 ‘‘(IV) For the fourth payment 

year for such hospital, 1 17 ⁄4. 

18 ‘‘(V) For any succeeding pay19 ment year for such hospital, 0. 

20 ‘‘(ii) PHASE DOWN FOR ELIGIBLE

21 HOSPITALS FIRST ADOPTING EHR AFTER

22 2013.—If the first payment year for an eli23 gible hospital is after 2013, then the tran24 sition factor specified in this subparagraph 

25 for a payment year for such hospital is the 


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1 same as the amount specified in clause (i) 

2 for such payment year for an eligible hos3 pital for which the first payment year is 

4 2013. If the first payment year for an eli5 gible hospital is after 2015 then the transi6 tion factor specified in this subparagraph 

7 for such hospital and for such year and 

8 any subsequent year shall be 0. 

9 ‘‘(F) FORM OF PAYMENT.—The payment 

10 under this subsection for a payment year may 

11 be in the form of a single consolidated payment 

12 or in the form of such periodic installments as 

13 the Secretary may specify. 

14 ‘‘(G) PAYMENT YEAR DEFINED.— 

15 ‘‘(i) IN GENERAL.—For purposes of 

16 this subsection, the term ‘payment year’ 

17 means a fiscal year beginning with fiscal 

18 year 2011. 

19 ‘‘(ii) FIRST, SECOND, ETC. PAYMENT

20 YEAR.—The term ‘first payment year’ 

21 means, with respect to inpatient hospital 

22 services furnished by an eligible hospital, 

23 the first fiscal year for which an incentive 

24 payment is made for such services under 

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1 ment year’, ‘third payment year’, and 

2 ‘fourth payment year’ mean, with respect 

3 to an eligible hospital, each successive year 

4 immediately following the first payment 

5 year for that hospital. 

6 ‘‘(3) MEANINGFUL EHR USER.— 

7 ‘‘(A) IN GENERAL.—For purposes of para8 graph (1), an eligible hospital shall be treated 

9 as a meaningful EHR user for a reporting pe10 riod for a payment year (or, for purposes of 

11 subsection (b)(3)(B)(ix), for a reporting period 

12 under such subsection for a fiscal year) if each 

13 of the following requirements are met: 

14 ‘‘(i) MEANINGFUL USE OF CERTIFIED

15 EHR TECHNOLOGY.—The eligible hospital 

16 demonstrates to the satisfaction of the Sec17 retary, in accordance with subparagraph 

18 (C)(i), that during such period the hospital 

19 is using certified EHR technology in a 

20 meaningful manner. 

21 ‘‘(ii) INFORMATION EXCHANGE.—The 

22 eligible hospital demonstrates to the satis23 faction of the Secretary, in accordance 

24 with subparagraph (C)(i), that during such 

25 period such certified EHR technology is 


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1 connected in a manner that provides, in 

2 accordance with law and standards appli3 cable to the exchange of information, for 

4 the electronic exchange of health informa5 tion to improve the quality of health care, 

6 such as promoting care coordination. 

7 ‘‘(iii) REPORTING ON MEASURES

8 USING EHR.—Subject to subparagraph 

9 (B)(ii) and using such certified EHR tech10 nology, the eligible hospital submits infor11 mation for such period, in a form and 

12 manner specified by the Secretary, on such 

13 clinical quality measures and such other 

14 measures as selected by the Secretary 

15 under subparagraph (B)(i). 

16 The Secretary shall seek to improve the use of 

17 electronic health records and health care quality 

18 over time by requiring more stringent measures 

19 of meaningful use selected under this para20 graph. 

21 ‘‘(B) REPORTING ON MEASURES.— 

22 ‘‘(i) SELECTION.—The Secretary shall 

23 select measures for purposes of subpara24 graph (A)(iii) but only consistent with the 

25 following: 


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1 ‘‘(I) The Secretary shall provide 

2 preference to clinical quality measures 

3 that have been selected for purposes 

4 of applying subsection (b)(3)(B)(viii) 

5 or that have been endorsed by the en6 tity with a contract with the Secretary 

7 under section 1890(a). 

8 ‘‘(II) Prior to any measure (other 

9 than a clinical quality measure that 

10 has been selected for purposes of ap11 plying subsection (b)(3)(B)(viii)) 

12 being selected under this subpara13 graph, the Secretary shall publish in 

14 the Federal Register such measure 

15 and provide for a period of public 

16 comment on such measure. 

17 ‘‘(ii) LIMITATIONS.—The Secretary 

18 may not require the electronic reporting of 

19 information on clinical quality measures 

20 under subparagraph (A)(iii) unless the 

21 Secretary has the capacity to accept the in22 formation electronically, which may be on 

23 a pilot basis. 

24 ‘‘(iii) COORDINATION OF REPORTING

25 OF INFORMATION.—In selecting such 


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1 measures, and in establishing the form and 

2 manner for reporting measures under sub3 paragraph (A)(iii), the Secretary shall seek 

4 to avoid redundant or duplicative reporting 

5 with reporting otherwise required, includ6 ing reporting under subsection 

7 (b)(3)(B)(viii). 

8 ‘‘(C) DEMONSTRATION OF MEANINGFUL

9 USE OF CERTIFIED EHR TECHNOLOGY AND IN10 FORMATION EXCHANGE.— 

11 ‘‘(i) IN GENERAL.—A hospital may 

12 satisfy the demonstration requirement of 

13 clauses (i) and (ii) of subparagraph (A) 

14 through means specified by the Secretary, 

15 which may include— 

16 ‘‘(I) an attestation; 

17 ‘‘(II) the submission of claims 

18 with appropriate coding (such as a 

19 code indicating that inpatient care 

20 was documented using certified EHR 

21 technology); 

22 ‘‘(III) a survey response; 

23 ‘‘(IV) reporting under subpara24 graph (A)(iii); and 


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1 ‘‘(V) other means specified by the 

2 Secretary. 

3 ‘‘(ii) USE OF PART D DATA.—Not4 withstanding sections 1860D–15(d)(2)(B) 

5 and 1860D–15(f)(2), the Secretary may 

6 use data regarding drug claims submitted 

7 for purposes of section 1860D–15 that are 

8 necessary for purposes of subparagraph 

9 (A). 

10 ‘‘(4) APPLICATION.— 

11 ‘‘(A) LIMITATIONS ON REVIEW.—There 

12 shall be no administrative or judicial review 

13 under section 1869, section 1878, or otherwise 

14 of the determination of any incentive payment 

15 under this subsection and the payment adjust16 ment under subsection (b)(3)(B)(ix), including 

17 the determination of a meaningful EHR user 

18 under paragraph (3), determination of meas19 ures applicable to services furnished by eligible 

20 hospitals under this subsection, and the excep21 tion under subsection (b)(3)(B)(ix)(II). 

22 ‘‘(B) POSTING ON WEBSITE.—The Sec23 retary shall post on the Internet website of the 

24 Centers for Medicare & Medicaid Services, in an 

25 easily understandable format, a list of the 


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1 names of the eligible hospitals that are mean2 ingful EHR users under this subsection or sub3 section (b)(3)(B)(ix) and other relevant data as 

4 determined appropriate by the Secretary. The 

5 Secretary shall ensure that a hospital has the 

6 opportunity to review the other relevant data 

7 that are to be made public with respect to the 

8 hospital prior to such data being made public. 

9 ‘‘(5) CERTIFIED EHR TECHNOLOGY DEFINED.— 

10 The term ‘certified EHR technology’ has the mean11 ing given such term in section 1848(o)(4). 

12 ‘‘(6) DEFINITIONS.—For purposes of this sub13 section: 

14 ‘‘(A) ELIGIBLE HOSPITAL.—The term ‘eli15 gible hospital’ means a subsection (d) hospital. 

16 ‘‘(B) REPORTING PERIOD.—The term ‘re17 porting period’ means any period (or periods), 

18 with respect to a payment year, as specified by 

19 the Secretary.’’. 

20 (b) INCENTIVE MARKET BASKET ADJUSTMENT.— 

21 Section 1886(b)(3)(B) of the Social Security Act (42 

22 U.S.C. 1395ww(b)(3)(B)) is amended— 

23 (1) in clause (viii)(I), by inserting ‘‘(or, begin24 ning with fiscal year 2016, by one-quarter)’’ after 

25 ‘‘2.0 percentage points’’; and 


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1 (2) by adding at the end the following new 

2 clause: 

3 ‘‘(ix)(I) For purposes of clause (i) for fiscal year 

4 2016 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 2016, 662 10 ⁄3 per11 cent for fiscal year 2017, and 100 percent for fiscal year 

12 2018 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 2016 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 (c) APPLICATION TO CERTAIN HMO-AFFILIATED

20 ELIGIBLE HOSPITALS.—Section 1853 of the Social Secu21 rity Act (42 U.S.C. 1395w–23), as amended by section 

22 4311(c), is further amended by adding at the end the fol23 lowing new subsection: 

24 ‘‘(m) APPLICATION OF ELIGIBLE HOSPITAL INCEN25 TIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOPTION


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1 AND MEANINGFUL USE OF CERTIFIED EHR TECH2 NOLOGY.— 

3 ‘‘(1) APPLICATION.—Subject to paragraphs (3) 

4 and (4), in the case of a qualifying MA organization, 

5 the provisions of sections 1886(n) and 

6 1886(b)(3)(B)(ix) shall apply with respect to eligible 

7 hospitals described in paragraph (2) of the organiza8 tion which the organization attests under subsection 

9 (l)(6) to be meaningful EHR users in a similar man10 ner as they apply to eligible hospitals under such 

11 sections. Incentive payments under paragraph (3) 

12 shall be made to and payment adjustments under 

13 paragraph (4) shall apply to such qualifying organi14 zations. 

15 ‘‘(2) ELIGIBLE HOSPITAL DESCRIBED.—With 

16 respect to a qualifying MA organization, an eligible 

17 hospital described in this paragraph is an eligible 

18 hospital that is under common corporate governance 

19 with such organization and serves individuals en20 rolled under an MA plan offered by such organiza21 tion. 

22 ‘‘(3) ELIGIBLE HOSPITAL INCENTIVE PAY23 MENTS.— 

24 ‘‘(A) IN GENERAL.—In applying section 

25 1886(n)(2) under paragraph (1), instead of the 


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1 additional payment amount under section 

2 1886(n)(2), there shall be substituted an 

3 amount determined by the Secretary to be simi4 lar to the estimated amount in the aggregate 

5 that would be payable if payment for services 

6 furnished by such hospitals was payable under 

7 part A instead of this part. In implementing the 

8 previous sentence, the Secretary— 

9 ‘‘(i) shall, insofar as data to deter10 mine the discharge related amount under 

11 section 1886(n)(2)(C) for an eligible hos12 pital are not available to the Secretary, use 

13 such alternative data and methodology to 

14 estimate such discharge related amount as 

15 the Secretary determines appropriate; and 

16 ‘‘(ii) shall, insofar as data to deter17 mine the medicare share described in sec18 tion 1886(n)(2)(D) for an eligible hospital 

19 are not available to the Secretary, use such 

20 alternative data and methodology to esti21 mate such share, which data and method22 ology may include use of the inpatient bed 

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1 uals for whom payment may be made 

2 under part A or individuals enrolled in an 

3 MA plan under a Medicare Advantage or4 ganization under this part as a proportion 

5 of the total number of patient-bed-days (or 

6 discharges) with respect to such hospital 

7 during such period. 

8 ‘‘(B) AVOIDING DUPLICATION OF PAY9 MENTS.— 

10 ‘‘(i) IN GENERAL.—In the case of a 

11 hospital that for a payment year is an eli12 gible hospital described in paragraph (2), 

13 is an eligible hospital under section 

14 1886(n), and for which at least one-third 

15 of their discharges (or bed-days) of Medi16 care patients for the year are covered 

17 under part A, payment for the payment 

18 year shall be made only under section 

19 1886(n) and not under this subsection. 

20 ‘‘(ii) METHODS.—In the case of a 

21 hospital that is an eligible hospital de22 scribed in paragraph (2) and also is eligi23 ble for an incentive payment under section 

24 1886(n) but is not described in clause (i) 


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1 for the same payment period, the Secretary 

2 shall develop a process— 

3 ‘‘(I) to ensure that duplicate pay4 ments are not made with respect to 

5 an eligible hospital both under this 

6 subsection and under section 1886(n); 

7 and 

8 ‘‘(II) to collect data from Medi9 care Advantage organizations to en10 sure against such duplicate payments. 

11 ‘‘(4) PAYMENT ADJUSTMENT.— 

12 ‘‘(A) Subject to paragraph (3), in the case 

13 of a qualifying MA organization (as defined in 

14 section 1853(l)(5)), if, according to the attesta15 tion of the organization submitted under sub16 section (l)(6) for an applicable period, one or 

17 more eligible hospitals (as defined in section 

18 1886(n)(6)(A)) that are under common cor19 porate governance with such organization and 

20 that serve individuals enrolled under a plan of21 fered by such organization are not meaningful 

22 EHR users (as defined in section 1886(n)(3)) 

23 with respect to a period, the payment amount 

24 payable under this section for such organization 

25 for such period shall be the percent specified in 


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1 subparagraph (B) for such period of the pay2 ment amount otherwise provided under this sec3 tion for such period. 

4 ‘‘(B) SPECIFIED PERCENT.—The percent 

5 specified under this subparagraph for a year is 

6 100 percent minus a number of percentage 

7 points equal to the product of— 

8 ‘‘(i) the number of the percentage 

9 point reduction effected under section 

10 1886(b)(3)(B)(ix)(I) for the period; and 

11 ‘‘(ii) the Medicare hospital expendi12 ture proportion specified in subparagraph 

13 (C) for the year. 

14 ‘‘(C) MEDICARE HOSPITAL EXPENDITURE

15 PROPORTION.—The Medicare hospital expendi16 ture proportion under this subparagraph for a 

17 year is the Secretary’s estimate of the propor18 tion, of the expenditures under parts A and B 

19 that are not attributable to this part, that are 

20 attributable to expenditures for inpatient hos21 pital services. 

22 ‘‘(D) APPLICATION OF PAYMENT ADJUST23 MENT.—In the case that a qualifying MA orga24 nization attests that not all eligible hospitals 

25 are meaningful EHR users with respect to an 


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1 applicable period, the Secretary shall apply the 

2 payment adjustment under this paragraph 

3 based on a methodology specified by the Sec4 retary, taking into account the proportion of 

5 such eligible hospitals, or discharges from such 

6 hospitals, that are not meaningful EHR users 

7 for such period.’’. 

8 (d) CONFORMING AMENDMENTS.— 

9 (1) Section 1814(b) of the Social Security Act 

10 (42 U.S.C. 1395f(b)) is amended— 

11 (A) in paragraph (3), in the matter pre12 ceding subparagraph (A), by inserting ‘‘, sub13 ject to section 1886(d)(3)(B)(ix)(III),’’ after 

14 ‘‘then’’; and 

15 (B) by adding at the end the following: 

16 ‘‘For purposes of applying paragraph (3), there 

17 shall be taken into account incentive payments, 

18 and payment adjustments under subsection 

19 (b)(3)(B)(ix) or (n) of section 1886.’’. 

20 (2) Section 1851(i)(1) of the Social Security 

21 Act (42 U.S.C. 1395w–21(i)(1)) is amended by 

22 striking ‘‘and 1886(h)(3)(D)’’ and inserting 

23 ‘‘1886(h)(3)(D), and 1853(m)’’. 


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1 (3) Section 1853 of the Social Security Act (42 

2 U.S.C. 1395w–23), as amended by section 

3 4311(d)(1), is amended— 

4 (A) in subsection (c)— 

5 (i) in paragraph (1)(D)(i), by striking 

6 ‘‘1848(o)’’ and inserting ‘‘, 1848(o), and 

7 1886(n)’’; and 

8 (ii) in paragraph (6)(A), by inserting 

9 ‘‘and subsections (b)(3)(B)(ix) and (n) of 

10 section 1886’’ after ‘‘section 1848’’; and 

11 (B) in subsection (f), by inserting ‘‘and 

12 subsection (m)’’ after ‘‘under subsection (l)’’. 

13 SEC. 4313. TREATMENT OF PAYMENTS AND SAVINGS; IM14 PLEMENTATION FUNDING. 

15 (a) PREMIUM HOLD HARMLESS.— 

16 (1) IN GENERAL.—Section 1839(a)(1) of the 

17 Social Security Act (42 U.S.C. 1395r(a)(1)) is 

18 amended by adding at the end the following: ‘‘In ap19 plying this paragraph there shall not be taken into 

20 account additional payments under section 1848(o) 

21 and section 1853(l)(3) and the Government con22 tribution under section 1844(a)(3).’’. 

23 (2) PAYMENT.—Section 1844(a) of such Act 

24 (42 U.S.C. 1395w(a)) is amended— 


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1 (A) in paragraph (2), by striking the pe2 riod at the end and inserting ‘‘; plus’’; and 

3 (B) by adding at the end the following new 

4 paragraph: 

5 ‘‘(3) a Government contribution equal to the 

6 amount of payment incentives payable under sec7 tions 1848(o) and 1853(l)(3).’’. 

8 (b) MEDICARE IMPROVEMENT FUND.—Section 1898 

9 of the Social Security Act (42 U.S.C. 1395iii), as added 

10 by section 7002(a) of the Supplemental Appropriations 

11 Act, 2008 (Public Law 110–252) and as amended by sec12 tion 188(a)(2) of the Medicare Improvements for Patients 

13 and Providers Act of 2008 (Public Law 110–275; 122 

14 Stat. 2589) and by section 6 of the QI Program Supple15 mental Funding Act of 2008, is amended— 

16 (1) in subsection (a)— 

17 (A) by inserting ‘‘medicare’’ before ‘‘fee18 for-service’’; and 

19 (B) by inserting before the period at the 

20 end the following: ‘‘including, but not limited 

21 to, an increase in the conversion factor under 

22 section 1848(d) to address, in whole or in part, 

23 any projected shortfall in the conversion factor 

24 for 2014 relative to the conversion factor for 

25 2008 and adjustments to payments for items 


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1 and services furnished by providers of services 

2 and suppliers under such original medicare fee3 for-service program’’; and 

4 (2) in subsection (b)— 

5 (A) in paragraph (1), by striking ‘‘during 

6 fiscal year 2014,’’ and all that follows and in7 serting the following: ‘‘during— 

8 ‘‘(A) fiscal year 2014, $22,290,000,000; 

9 and 

10 ‘‘(B) fiscal year 2020 and each subsequent 

11 fiscal year, the Secretary’s estimate, as of July 

12 1 of the fiscal year, of the aggregate reduction 

13 in expenditures under this title during the pre14 ceding fiscal year directly resulting from the re15 duction in payment amounts under sections 

16 1848(a)(7), 1853(l)(4), 1853(m)(4), and 

17 1886(b)(3)(B)(ix).’’; and 

18 (B) by adding at the end the following new 

19 paragraph: 

20 ‘‘(4) NO EFFECT ON PAYMENTS IN SUBSE21 QUENT YEARS.—In the case that expenditures from 

22 the Fund are applied to, or otherwise affect, a pay23 ment rate for an item or service under this title for 

24 a year, the payment rate for such item or service 


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1 shall be computed for a subsequent year as if such 

2 application or effect had never occurred.’’. 

3 (c) IMPLEMENTATION FUNDING.—In addition to 

4 funds otherwise available, out of any funds in the Treas5 ury not otherwise appropriated, there are appropriated to 

6 the Secretary of Health and Human Services for the Cen7 ter for Medicare & Medicaid Services Program Manage8 ment Account, $60,000,000 for each of fiscal years 2009 

9 through 2015 and $30,000,000 for each succeeding fiscal 

10 year through fiscal year 2019, which shall be available for 

11 purposes of carrying out the provisions of (and amend12 ments made by) this part. Amounts appropriated under 

13 this subsection for a fiscal year shall be available until ex14 pended. 

15 SEC. 4314. STUDY ON APPLICATION OF EHR PAYMENT IN16 CENTIVES FOR PROVIDERS NOT RECEIVING 

17 OTHER INCENTIVE PAYMENTS. 

18 (a) STUDY.— 

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

20 Human Services shall conduct a study to determine 

21 the extent to which and manner in which payment 

22 incentives (such as under title XVIII or XIX of the 

23 Social Security Act) and other funding for purposes 

24 of implementing and using certified EHR technology 

25 (as defined in section 3000 of the Public Health 


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1 Service Act) should be made available to health care 

2 providers who are receiving minimal or no payment 

3 incentives or other funding under this Act, under 

4 title XVIII or XIX of the Social Security Act, or 

5 otherwise, for such purposes. 

6 (2) DETAILS OF STUDY.—Such study shall in7 clude an examination of— 

8 (A) the adoption rates of certified EHR 

9 technology by such health care providers; 

10 (B) the clinical utility of such technology 

11 by such health care providers; 

12 (C) whether the services furnished by such 

13 health care providers are appropriate for or 

14 would benefit from the use of such technology; 

15 (D) the extent to which such health care 

16 providers work in settings that might otherwise 

17 receive an incentive payment or other funding 

18 under this Act, title XVIII or XIX of the Social 

19 Security Act, or otherwise; 

20 (E) the potential costs and the potential 

21 benefits of making payment incentives and 

22 other funding available to such health care pro23 viders; and 

24 (F) any other issues the Secretary deems 

25 to be appropriate. 


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1 (b) REPORT.—Not later than June 30, 2010, the 

2 Secretary shall submit to Congress a report on the find3 ings and conclusions of the study conducted under sub4 section (a). 

5 PART III—MEDICAID FUNDING 

6 SEC. 4321. MEDICAID PROVIDER HIT ADOPTION AND OPER7 ATION PAYMENTS; IMPLEMENTATION FUND8 ING. 

9 (a) IN GENERAL.—Section 1903 of the Social Secu10 rity Act (42 U.S.C. 1396b) is amended— 

11 (1) in subsection (a)(3)— 

12 (A) by striking ‘‘and’’ at the end of sub13 paragraph (D); 

14 (B) by striking ‘‘plus’’ at the end of sub15 paragraph (E) and inserting ‘‘and’’; and 

16 (C) by adding at the end the following new 

17 subparagraph: 

18 ‘‘(F)(i) 100 percent of so much of the 

19 sums expended during such quarter as are at20 tributable to payments for certified EHR tech21 nology (and support services including mainte22 nance and training that is for, or is necessary 

23 for the adoption and operation of, such tech24 nology) by Medicaid providers described in sub25 section (t)(1); and 


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1 ‘‘(ii) 90 percent of so much of the sums ex2 pended during such quarter as are attributable 

3 to payments for reasonable administrative ex4 penses related to the administration of pay5 ments described in clause (i) if the State meets 

6 the condition described in subsection (t)(9); 

7 plus’’; and 

8 (2) by inserting after subsection (s) the fol9 lowing new subsection: 

10 ‘‘(t)(1)(A) For purposes of subsection (a)(3)(F), the 

11 payments for certified EHR technology (and support serv12 ices including maintenance that is for, or is necessary for 

13 the operation of, such technology) by Medicaid providers 

14 described in this paragraph are payments made by the 

15 State in accordance with this subsection of the applicable 

16 percent (as specified in subparagraph (B)) of the net al17 lowable costs of Medicaid providers (as defined in para18 graph (2)) for such technology (and support services). 

19 ‘‘(B) For purposes of subparagraph (A), the applica20 ble percent is— 

21 ‘‘(i) in the case of a Medicaid provider de22 scribed in paragraph (2)(A), 85 percent; and 

23 ‘‘(ii) in the case of a Medicaid provider de24 scribed in paragraph (2)(B), 100 percent. 


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1 ‘‘(2) In this subsection and subsection (a)(3)(F), the 

2 term ‘Medicaid provider’ means— 

3 ‘‘(A) an eligible professional (as defined in 

4 paragraph (3)(B)) who is not hospital-based and has 

5 at least 30 percent of the professional’s patient vol6 ume (as estimated in accordance with standards es7 tablished by the Secretary) attributable to individ8 uals who are receiving medical assistance under this 

9 title; and 

10 ‘‘(B)(i) a children’s hospital, (ii) an acute-care 

11 hospital that is not described in clause (i) and that 

12 has at least 10 percent of the hospital’s patient vol13 ume (as estimated in accordance with standards es14 tablished by the Secretary) attributable to individ15 uals who are receiving medical assistance under this 

16 title, or (iii) a Federally-qualified health center or 

17 rural health clinic that has at least 30 percent of the 

18 center’s or clinic’s patient volume (as estimated in 

19 accordance with standards established by the Sec20 retary) attributable to individuals who are receiving 

21 medical assistance under this title. 

22 An eligible professional shall not qualify as a Medicaid 

23 provider under this subsection unless the eligible profes24 sional has waived, in a manner specified by the Secretary, 

25 any right to payment under section 1848(o) with respect 


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1 to the adoption or support of certified EHR technology 

2 by the professional. In applying clauses (ii) and (iii) of 

3 subparagraph (B), the standards established by the Sec4 retary for patient volume shall include individuals enrolled 

5 in a Medicaid managed care plan (under section 1903(m) 

6 or section 1932). 

7 ‘‘(3) In this subsection and subsection (a)(3)(F): 

8 ‘‘(A) The term ‘certified EHR technology’ 

9 means a qualified electronic health record (as de10 fined in 3000(13) of the Public Health Service Act) 

11 that is certified pursuant to section 3001(c)(5) of 

12 such Act as meeting standards adopted under sec13 tion 3004 of such Act that are applicable to the type 

14 of record involved (as determined by the Secretary, 

15 such as an ambulatory electronic health record for 

16 office-based physicians or an inpatient hospital elec17 tronic health record for hospitals). 

18 ‘‘(B) The term ‘eligible professional’ means a 

19 physician as defined in paragraphs (1) and (2) of 

20 section 1861(r), and includes a certified nurse mid21 wife and a nurse practitioner. 

22 ‘‘(C) The term ‘hospital-based’ means, with re23 spect to an eligible professional, a professional (such 

24 as a pathologist, anesthesiologist, or emergency phy25 sician) who furnishes substantially all of the individVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00522 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 ual’s professional services in a hospital setting 

2 (whether inpatient or outpatient) and through the 

3 use of the facilities and equipment, including com4 puter equipment, of the hospital. 

5 ‘‘(4)(A) The term ‘allowable costs’ means, with re6 spect to certified EHR technology of a Medicaid provider, 

7 costs of such technology (and support services including 

8 maintenance and training that is for, or is necessary for 

9 the adoption and operation of, such technology) as deter10 mined by the Secretary to be reasonable. 

11 ‘‘(B) The term ‘net allowable costs’ means allowable 

12 costs reduced by any payment that is made to the Med13 icaid provider involved from any other source that is di14 rectly attributable to payment for certified EHR tech15 nology or services described in subparagraph (A). 

16 ‘‘(C) In no case shall— 

17 ‘‘(i) the aggregate allowable costs under this 

18 subsection (covering one or more years) with respect 

19 to a Medicaid provider described in paragraph 

20 (2)(A) for purchase and initial implementation of 

21 certified EHR technology (and services described in 

22 subparagraph (A)) exceed $25,000 or include costs 

23 over a period of longer than 5 years; 

24 ‘‘(ii) for costs not described in clause (i) relat25 ing to the operation, maintenance, or use of certified 


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1 EHR technology, the annual allowable costs under 

2 this subsection with respect to such a Medicaid pro3 vider for costs not described in clause (i) for any 

4 year exceed $10,000; 

5 ‘‘(iii) payment described in paragraph (1) for 

6 costs described in clause (ii) be made with respect 

7 to such a Medicaid provider over a period of more 

8 than 5 years; 

9 ‘‘(iv) the aggregate allowable costs under this 

10 subsection with respect to such a Medicaid provider 

11 for all costs exceed $75,000; or 

12 ‘‘(v) the allowable costs, whether for purchase 

13 and initial implementation, maintenance, or other14 wise, for a Medicaid provider described in paragraph 

15 (2)(B)(iii) exceed such aggregate or annual limita16 tion as the Secretary shall establish, based on an 

17 amount determined by the Secretary as being ade18 quate to adopt and maintain certified EHR tech19 nology, consistent with paragraph (6). 

20 ‘‘(5) Payments described in paragraph (1) are not in 

21 accordance with this subsection unless the following re22 quirements are met: 

23 ‘‘(A) The State provides assurances satisfactory 

24 to the Secretary that amounts received under sub25 section (a)(3)(F) with respect to costs of a Medicaid 


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1 provider are paid directly to such provider without 

2 any deduction or rebate. 

3 ‘‘(B) Such Medicaid provider is responsible for 

4 payment of the costs described in such paragraph 

5 that are not provided under this title. 

6 ‘‘(C) With respect to payments to such Med7 icaid provider for costs other than costs related to 

8 the initial adoption of certified EHR technology, the 

9 Medicaid provider demonstrates meaningful use of 

10 certified EHR technology through a means that is 

11 approved by the State and acceptable to the Sec12 retary, and that may be based upon the methodolo13 gies applied under section 1848(o) or 1886(n). 

14 ‘‘(D) To the extent specified by the Secretary, 

15 the certified EHR technology is compatible with 

16 State or Federal administrative management sys17 tems. 

18 ‘‘(6)(A) In no case shall the payments described in 

19 paragraph (1), with respect to a hospital, exceed in the 

20 aggregate the product of— 

21 ‘‘(i) the overall hospital EHR amount for the 

22 hospital computed under subparagraph (B); and 

23 ‘‘(ii) the Medicaid share for such hospital com24 puted under subparagraph (C). 


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1 ‘‘(B) For purposes of this paragraph, the overall hos2 pital EHR amount, with respect to a hospital, is the sum 

3 of the applicable amounts specified in section 

4 1886(n)(2)(A) for such hospital for the first 4 payment 

5 years (as estimated by the Secretary) determined as if the 

6 Medicare share specified in clause (ii) of such section were 

7 1. The Secretary shall publish in the Federal Register the 

8 overall hospital EHR amount for each hospital eligible for 

9 payments under this subsection. In computing amounts 

10 under paragraph 1886(n)(2)(C) for payment years after 

11 the first payment year, the Secretary shall assume that 

12 in subsequent payment years discharges increase at the 

13 average annual rate of growth of the most recent 3 years 

14 for which discharge data are available per year. 

15 ‘‘(C) The Medicaid share computed under this sub16 paragraph, for a hospital for a period specified by the Sec17 retary, shall be calculated in the same manner as the 

18 Medicare share under section 1886(n)(2)(D) for such a 

19 hospital and period, except that there shall be substituted 

20 for the numerator under clause (i) of such section the 

21 amount that is equal to the number of inpatient-bed-days 

22 (as established by the Secretary) which are attributable 

23 to individuals who are receiving medical assistance under 

24 this title and who are not described in section 

25 1886(n)(2)(D)(i). In computing inpatient-bed-days under 


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1 the previous sentence, the Secretary shall take into ac2 count inpatient-bed-days attributable to inpatient-bed3 days that are paid for individuals enrolled in a Medicaid 

4 managed care plan (under section 1903(m) or section 

5 1932). 

6 ‘‘(7) With respect to health care providers other than 

7 hospitals, the Secretary shall ensure coordination of the 

8 different programs for payment of such health care pro9 viders for adoption or use of health information technology 

10 (including certified EHR technology), as well as payments 

11 for such health care providers provided under this title or 

12 title XVIII, to assure no duplication of funding. 

13 ‘‘(8) In carrying out paragraph (5)(C), the State and 

14 Secretary shall seek, to the maximum extent practicable, 

15 to avoid duplicative requirements from Federal and State 

16 Governments to demonstrate meaningful use of certified 

17 EHR technology under this title and title XVIII. In doing 

18 so, the Secretary may deem satisfaction of requirements 

19 for such meaningful use for a payment year under title 

20 XVIII to be sufficient to qualify as meaningful use under 

21 this subsection. The Secretary may also specify the report22 ing periods under this subsection in order to carry out this 

23 paragraph. 

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1 onstrate to the satisfaction of the Secretary, that the 

2 State— 

3 ‘‘(A) is using the funds provided for the pur4 poses of administering payments under this sub5 section, including tracking of meaningful use by 

6 Medicaid providers; 

7 ‘‘(B) is conducting adequate oversight of the 

8 program under this subsection, including routine 

9 tracking of meaningful use attestations and report10 ing mechanisms; and 

11 ‘‘(C) is pursuing initiatives to encourage the 

12 adoption of certified EHR technology to promote 

13 health care quality and the exchange of health care 

14 information under this title, subject to applicable 

15 laws and regulations governing such exchange. 

16 ‘‘(10) The Secretary shall periodically submit reports 

17 to the Committee on Energy and Commerce of the House 

18 of Representatives and the Committee on Finance of the 

19 Senate on status, progress, and oversight of payments 

20 under paragraph (1).’’. 

21 (b) IMPLEMENTATION FUNDING.—In addition to 

22 funds otherwise available, out of any funds in the Treas23 ury not otherwise appropriated, there are appropriated to 

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1 ment Account, $40,000,000 for each of fiscal years 2009 

2 through 2015 and $20,000,000 for each succeeding fiscal 

3 year through fiscal year 2019, which shall be available for 

4 purposes of carrying out the provisions of (and the amend5 ments made by) this part. Amounts appropriated under 

6 this subsection for a fiscal year shall be available until ex7 pended. 

8 SEC. 4322. MEDICAID NURSING FACILITY GRANT PROGRAM. 

9 (a) IN GENERAL.—The Secretary shall establish a 

10 grant program to enhance the meaningful use of certified 

11 electronic health records in nursing facilities. In estab12 lishing such program, the Secretary shall use payment in13 centives for meaningful use of certified EHR technology, 

14 similar to those specified in sections 4311, 4312, and 

15 4321, as appropriate. For the purpose of such incentives, 

16 the Secretary shall define meaningful use in a manner so 

17 as to be consistent with such sections to the extent prac18 ticable. The Secretary shall award funds to not more than 

19 10 States to carry out activities under this section. 

20 (b) ACTIVITIES.—The Secretary shall require a State 

21 participating in the grant program to— 

22 (1) provide payment incentives to nursing facili23 ties contingent on the demonstration of meaningful 

24 use of certified electronic health records; 


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1 (2) require participating nursing facilities to en2 gage in programs to improve the quality and coordi3 nation of care through the use of certified EHR 

4 technology, including for persons who are repeatedly 

5 admitted to acute care hospitals from the nursing 

6 facility and persons who receive services across mul7 tiple medical and social services providers (including 

8 facility and community-based providers); and 

9 (3) provide for training of appropriate per10 sonnel in the use of certified electronic health 

11 records. 

12 (c) TARGETING.—The Secretary shall require a State 

13 participating in the grant program to target nursing facili14 ties with a significant percentage (but not less than the 

15 average in the State) of the facility’s patient volume (as 

16 estimated in accordance with standards established by the 

17 Secretary) attributable to individuals who are receiving 

18 medical assistance under title XIX of the Social Security 

19 Act. 

20 (d) PRIORITY.—In making grants under this section, 

21 the Secretary shall give priority to States with a high pro22 portion of total national nursing facility days paid under 

23 title XIX of the Social Security Act. 

24 (e) LIMITATIONS ON USE OF FUNDS.—A State may 

25 not make payments to a nursing facility in excess of 90 


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1 percent of the costs of such nursing facility for the adop2 tion and operation of certified EHR technology. 

3 (f) APPLICATION.—No grant may be made to a State 

4 under this section unless the State submits an application 

5 to the Secretary in a form and manner specified by the 

6 Secretary. 

7 (g) REPORT.—Not later than the end of the 3-year 

8 period beginning on the date that grants under this sec9 tion are first awarded, the Secretary shall submit a report 

10 to Congress on the activities under this grant program and 

11 the effect of this program on quality and coordination of 

12 care under title XIX of the Social Security Act. 

13 (h) APPROPRIATION.—Out of any money in the 

14 Treasury not otherwise appropriated, there is appro15 priated to the Secretary of Health and Human Services 

16 to carry out this section $600,000,000, to remain available 

17 until expended. 

18 Subtitle D—Privacy 

19 SEC. 4400. DEFINITIONS. 

20 In this subtitle, except as specified otherwise: 

21 (1) BREACH.—The term ‘‘breach’’ means the 

22 unauthorized acquisition, access, use, or disclosure 

23 of protected health information which compromises 

24 the security, privacy, or integrity of protected health 

25 information maintained by or on behalf of a person. 


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1 Such term does not include any unintentional acqui2 sition, access, use, or disclosure of such information 

3 by an employee or agent of the covered entity or 

4 business associate involved if such acquisition, ac5 cess, use, or disclosure, respectively, was made in 

6 good faith and within the course and scope of the 

7 employment or other contractual relationship of such 

8 employee or agent, respectively, with the covered en9 tity or business associate and if such information is 

10 not further acquired, accessed, used, or disclosed by 

11 such employee or agent. 

12 (2) BUSINESS ASSOCIATE.—The term ‘‘business 

13 associate’’ has the meaning given such term in sec14 tion 160.103 of title 45, Code of Federal Regula15 tions. 

16 (3) COVERED ENTITY.—The term ‘‘covered en17 tity’’ has the meaning given such term in section 

18 160.103 of title 45, Code of Federal Regulations. 

19 (4) DISCLOSE.—The terms ‘‘disclose’’ and ‘‘dis20 closure’’ have the meaning given the term ‘‘disclo21 sure’’ in section 160.103 of title 45, Code of Federal 

22 Regulations. 

23 (5) ELECTRONIC HEALTH RECORD.—The term 

24 ‘‘electronic health record’’ means an electronic 

25 record of health-related information on an individual 


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1 that is created, gathered, managed, and consulted by 

2 authorized health care clinicians and staff. 

3 (6) HEALTH CARE OPERATIONS.—The term 

4 ‘‘health care operation’’ has the meaning given such 

5 term in section 164.501 of title 45, Code of Federal 

6 Regulations. 

7 (7) HEALTH CARE PROVIDER.—The term 

8 ‘‘health care provider’’ has the meaning given such 

9 term in section 160.103 of title 45, Code of Federal 

10 Regulations. 

11 (8) HEALTH PLAN.—The term ‘‘health plan’’ 

12 has the meaning given such term in section 1171(5) 

13 of the Social Security Act. 

14 (9) NATIONAL COORDINATOR.—The term ‘‘Na15 tional Coordinator’’ means the head of the Office of 

16 the National Coordinator for Health Information 

17 Technology established under section 3001(a) of the 

18 Public Health Service Act, as added by section 

19 4101. 

20 (10) PAYMENT.—The term ‘‘payment’’ has the 

21 meaning given such term in section 164.501 of title 

22 45, Code of Federal Regulations. 

23 (11) PERSONAL HEALTH RECORD.—The term 

24 ‘‘personal health record’’ means an electronic record 

25 of individually identifiable health information on an 


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1 individual that can be drawn from multiple sources 

2 and that is managed, shared, and controlled by or 

3 for the individual. 

4 (12) PROTECTED HEALTH INFORMATION.—The 

5 term ‘‘protected health information’’ has the mean6 ing given such term in section 160.103 of title 45, 

7 Code of Federal Regulations. 

8 (13) SECRETARY.—The term ‘‘Secretary’’ 

9 means the Secretary of Health and Human Services. 

10 (14) SECURITY.—The term ‘‘security’’ has the 

11 meaning given such term in section 164.304 of title 

12 45, Code of Federal Regulations. 

13 (15) STATE.—The term ‘‘State’’ means each of 

14 the several States, the District of Columbia, Puerto 

15 Rico, the Virgin Islands, Guam, American Samoa, 

16 and the Northern Mariana Islands. 

17 (16) TREATMENT.—The term ‘‘treatment’’ has 

18 the meaning given such term in section 164.501 of 

19 title 45, Code of Federal Regulations. 

20 (17) USE.—The term ‘‘use’’ has the meaning 

21 given such term in section 160.103 of title 45, Code 

22 of Federal Regulations. 

23 (18) VENDOR OF PERSONAL HEALTH

24 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. 4401. 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, including the use of standards developed 

12 under section 3002(b)(2)(B)(vi) of the Public Health 

13 Service Act, as added by section 4101, as such provisions 

14 are in effect as of the date before the enactment of this 

15 Act. 

16 SEC. 4402. NOTIFICATION IN THE CASE OF BREACH. 

17 (a) IN GENERAL.—A covered entity that accesses, 

18 maintains, retains, modifies, records, stores, destroys, or 

19 otherwise holds, uses, or discloses unsecured protected 

20 health information (as defined in subsection (h)(1)) shall, 

21 in the case of a breach of such information that is discov22 ered by the covered entity, notify each individual whose 

23 unsecured protected health information has been, or is 

24 reasonably believed by the covered entity to have been, 

25 accessed, acquired, or disclosed as a result of such breach. 


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1 (b) NOTIFICATION OF COVERED ENTITY BY BUSI2 NESS ASSOCIATE.—A business associate of a covered enti3 ty that accesses, maintains, retains, modifies, records, 

4 stores, destroys, or otherwise holds, uses, or discloses un5 secured protected health information shall, following the 

6 discovery of a breach of such information, notify the cov7 ered entity of such breach. Such notice shall include the 

8 identification of each individual whose unsecured protected 

9 health information has been, or is reasonably believed by 

10 the business associate to have been, accessed, acquired, 

11 or disclosed during such breach. 

12 (c) BREACHES TREATED AS DISCOVERED.—For pur13 poses of this section, a breach shall be treated as discov14 ered by a covered entity or by a business associate as of 

15 the first day on which such breach is known to such entity 

16 or associate, respectively, (including any person, other 

17 than the individual committing the breach, that is an em18 ployee, officer, or other agent of such entity or associate, 

19 respectively) or should reasonably have been known to 

20 such entity or associate (or person) to have occurred. 

21 (d) TIMELINESS OF NOTIFICATION.— 

22 (1) IN GENERAL.—Subject to subsection (g), all 

23 notifications required under this section shall be 

24 made without unreasonable delay and in no case 

25 later than 60 calendar days after the discovery of a 


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1 breach by the covered entity involved (or business 

2 associate involved in the case of a notification re3 quired under subsection (b)). 

4 (2) BURDEN OF PROOF.—The covered entity in5 volved (or business associate involved in the case of 

6 a notification required under subsection (b)), shall 

7 have the burden of demonstrating that all notifica8 tions were made as required under this part, includ9 ing evidence demonstrating the necessity of any 

10 delay. 

11 (e) METHODS OF NOTICE.— 

12 (1) INDIVIDUAL NOTICE.—Notice required 

13 under this section to be provided to an individual, 

14 with respect to a breach, shall be provided promptly 

15 and in the following form: 

16 (A) Written notification by first-class mail 

17 to the individual (or the next of kin of the indi18 vidual if the individual is deceased) at the last 

19 known address of the individual or the next of 

20 kin, respectively, or, if specified as a preference 

21 by the individual, by electronic mail. The notifi22 cation may be provided in one or more mailings 

23 as information is available. 

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1 cluding a phone number, email address, or any 

2 other form of appropriate communication) that 

3 precludes direct written (or, if specified by the 

4 individual under subparagraph (A), electronic) 

5 notification to the individual, a substitute form 

6 of notice shall be provided, including, in the 

7 case that there are 10 or more individuals for 

8 which there is insufficient or out-of-date contact 

9 information, a conspicuous posting for a period 

10 determined by the Secretary on the home page 

11 of the Web site of the covered entity involved or 

12 notice in major print or broadcast media, in13 cluding major media in geographic areas where 

14 the individuals affected by the breach likely re15 side. Such a notice in media or web posting will 

16 include a toll-free phone number where an indi17 vidual can learn whether or not the individual’s 

18 unsecured protected health information is pos19 sibly included in the breach. 

20 (C) In any case deemed by the covered en21 tity involved to require urgency because of pos22 sible imminent misuse of unsecured protected 

23 health information, the covered entity, in addi24 tion to notice provided under subparagraph (A), 


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1 may provide information to individuals by tele2 phone or other means, as appropriate. 

3 (2) MEDIA NOTICE.—Notice shall be provided 

4 to prominent media outlets serving a State or juris5 diction, following the discovery of a breach described 

6 in subsection (a), if the unsecured protected health 

7 information of more than 500 residents of such 

8 State or jurisdiction is, or is reasonably believed to 

9 have been, accessed, acquired, or disclosed during 

10 such breach. 

11 (3) NOTICE TO SECRETARY.—Notice shall be 

12 provided to the Secretary by covered entities of un13 secured protected health information that has been 

14 acquired or disclosed in a breach. If the breach was 

15 with respect to 500 or more individuals than such 

16 notice must be provided immediately. If the breach 

17 was with respect to less than 500 individuals, the 

18 covered entity involved may maintain a log of any 

19 such breach occurring and annually submit such a 

20 log to the Secretary documenting such breaches oc21 curring during the year involved. 

22 (4) POSTING ON HHS PUBLIC WEBSITE.—The 

23 Secretary shall make available to the public on the 

24 Internet website of the Department of Health and 

25 Human Services a list that identifies each covered 


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1 entity involved in a breach described in subsection 

2 (a) in which the unsecured protected health informa3 tion of more than 500 individuals is acquired or dis4 closed. 

5 (f) CONTENT OF NOTIFICATION.—Regardless of the 

6 method by which notice is provided to individuals under 

7 this section, notice of a breach shall include, to the extent 

8 possible, the following: 

9 (1) A brief description of what happened, in10 cluding the date of the breach and the date of the 

11 discovery of the breach, if known. 

12 (2) A description of the types of unsecured pro13 tected health information that were involved in the 

14 breach (such as full name, Social Security number, 

15 date of birth, home address, account number, or dis16 ability code). 

17 (3) The steps individuals should take to protect 

18 themselves from potential harm resulting from the 

19 breach. 

20 (4) A brief description of what the covered enti21 ty involved is doing to investigate the breach, to 

22 mitigate losses, and to protect against any further 

23 breaches. 

24 (5) Contact procedures for individuals to ask 

25 questions or learn additional information, which 


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1 shall include a toll-free telephone number, an e-mail 

2 address, Web site, or postal address. 

3 (g) DELAY OF NOTIFICATION AUTHORIZED FOR LAW

4 ENFORCEMENT PURPOSES.—If a law enforcement official 

5 determines that a notification, notice, or posting required 

6 under this section would impede a criminal investigation 

7 or cause damage to national security, such notification, 

8 notice, or posting shall be delayed in the same manner 

9 as provided under section 164.528(a)(2) of title 45, Code 

10 of Federal Regulations, in the case of a disclosure covered 

11 under such section. 

12 (h) UNSECURED PROTECTED HEALTH INFORMA13 TION.— 

14 (1) DEFINITION.— 

15 (A) IN GENERAL.—Subject to subpara16 graph (B), for purposes of this section, the 

17 term ‘‘unsecured protected health information’’ 

18 means protected health information that is not 

19 secured through the use of a technology or 

20 methodology specified by the Secretary in the 

21 guidance issued under paragraph (2). 

22 (B) EXCEPTION IN CASE TIMELY GUID23 ANCE NOT ISSUED.—In the case that the Sec24 retary does not issue guidance under paragraph 

25 (2) by the date specified in such paragraph, for 


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1 purposes of this section, the term ‘‘unsecured 

2 protected health information’’ shall mean pro3 tected health information that is not secured by 

4 a technology standard that renders protected 

5 health information unusable, unreadable, or in6 decipherable to unauthorized individuals and is 

7 developed or endorsed by a standards devel8 oping organization that is accredited by the 

9 American National Standards Institute. 

10 (2) GUIDANCE.—For purposes of paragraph (1) 

11 and section 407(f)(3), not later than the date that 

12 is 60 days after the date of the enactment of this 

13 Act, the Secretary shall, after consultation with 

14 stakeholders, issue (and annually update) guidance 

15 specifying the technologies and methodologies that 

16 render protected health information unusable, 

17 unreadable, or indecipherable to unauthorized indi18 viduals, including use of standards developed under 

19 section 3002(b)(2)(B)(vi) of the Public Health Serv20 ice Act, as added by section 4101. 

21 (i) REPORT TO CONGRESS ON BREACHES.— 

22 (1) IN GENERAL.—Not later than 12 months 

23 after the date of the enactment of this Act and an24 nually thereafter, the Secretary shall prepare and 

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1 mittee on Health, Education, Labor, and Pensions 

2 of the Senate and the Committee on Ways and 

3 Means and the Committee on Energy and Commerce 

4 of the House of Representatives a report containing 

5 the information described in paragraph (2) regard6 ing breaches for which notice was provided to the 

7 Secretary under subsection (e)(3). 

8 (2) INFORMATION.—The information described 

9 in this paragraph regarding breaches specified in 

10 paragraph (1) shall include— 

11 (A) the number and nature of such 

12 breaches; and 

13 (B) actions taken in response to such 

14 breaches. 

15 (j) REGULATIONS; EFFECTIVE DATE.—To carry out 

16 this section, the Secretary of Health and Human Services 

17 shall promulgate interim final regulations by not later 

18 than the date that is 180 days after the date of the enact19 ment of this title. The provisions of this section shall apply 

20 to breaches that are discovered on or after the date that 

21 is 30 days after the date of publication of such interim 

22 final regulations. 


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1 SEC. 4403. EDUCATION ON HEALTH INFORMATION PRI2 VACY. 

3 (a) REGIONAL OFFICE PRIVACY ADVISORS.—Not 

4 later than 6 months after the date of the enactment of 

5 this Act, the Secretary shall designate an individual in 

6 each regional office of the Department of Health and 

7 Human Services to offer guidance and education to cov8 ered entities, business associates, and individuals on their 

9 rights and responsibilities related to Federal privacy and 

10 security requirements for protected health information. 

11 (b) EDUCATION INITIATIVE ON USES OF HEALTH IN12 FORMATION.—Not later than 12 months after the date of 

13 the enactment of this Act, the Office for Civil Rights with14 in the Department of Health and Human Services shall 

15 develop and maintain a multi-faceted national education 

16 initiative to enhance public transparency regarding the 

17 uses of protected health information, including programs 

18 to educate individuals about the potential uses of their 

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

20 the rights of individuals with respect to such uses. Such 

21 programs shall be conducted in a variety of languages and 

22 present information in a clear and understandable man23 ner. 


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1 SEC. 4404. APPLICATION OF PRIVACY PROVISIONS AND 

2 PENALTIES TO BUSINESS ASSOCIATES OF 

3 COVERED ENTITIES. 

4 (a) APPLICATION OF CONTRACT REQUIREMENTS.— 

5 In the case of a business associate of a covered entity that 

6 obtains or creates protected health information pursuant 

7 to a written contract (or other written arrangement) de8 scribed in section 164.502(e)(2) of title 45, Code of Fed9 eral Regulations, with such covered entity, the business 

10 associate may use and disclose such protected health infor11 mation only if such use or disclosure, respectively, is in 

12 compliance with each applicable requirement of section 

13 164.504(e) of such title. The additional requirements of 

14 this subtitle that relate to privacy and that are made ap15 plicable with respect to covered entities shall also be appli16 cable to such a business associate and shall be incor17 porated into the business associate agreement between the 

18 business associate and the covered entity. 

19 (b) APPLICATION OF KNOWLEDGE ELEMENTS ASSO20 CIATED WITH CONTRACTS.—Section 164.504(e)(1)(ii) of 

21 title 45, Code of Federal Regulations, shall apply to a 

22 business associate described in subsection (a), with respect 

23 to compliance with such subsection, in the same manner 

24 that such section applies to a covered entity, with respect 

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

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


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1 section 164.504(e)(1)(ii) each reference to the business as2 sociate, with respect to a contract, shall be treated as a 

3 reference to the covered entity involved in such contract. 

4 (c) APPLICATION OF CIVIL AND CRIMINAL PEN5 ALTIES.—In the case of a business associate that violates 

6 any provision of subsection (a) or (b), the provisions of 

7 sections 1176 and 1177 of the Social Security Act (42 

8 U.S.C. 1320d–5, 1320d–6) shall apply to the business as9 sociate with respect to such violation in the same manner 

10 as such provisions apply to a person who violates a provi11 sion of part C of title XI of such Act. 

12 SEC. 4405. RESTRICTIONS ON CERTAIN DISCLOSURES AND 

13 SALES OF HEALTH INFORMATION; ACCOUNT14 ING OF CERTAIN PROTECTED HEALTH IN15 FORMATION DISCLOSURES; ACCESS TO CER16 TAIN INFORMATION IN ELECTRONIC FOR17 MAT. 

18 (a) REQUESTED RESTRICTIONS ON CERTAIN DIS19 CLOSURES OF HEALTH INFORMATION.—In the case that 

20 an individual requests under paragraph (a)(1)(i)(A) of 

21 section 164.522 of title 45, Code of Federal Regulations, 

22 that a covered entity restrict the disclosure of the pro23 tected health information of the individual, notwith24 standing paragraph (a)(1)(ii) of such section, the covered 

25 entity must comply with the requested restriction if— 


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1 (1) except as otherwise required by law, the dis2 closure is to a health plan for purposes of carrying 

3 out payment or health care operations (and is not 

4 for purposes of carrying out treatment); and 

5 (2) the protected health information pertains 

6 solely to a health care item or service for which the 

7 health care provider involved has been paid out of 

8 pocket in full. 

9 (b) DISCLOSURES REQUIRED TO BE LIMITED TO

10 THE LIMITED DATA SET OR THE MINIMUM NEC11 ESSARY.— 

12 (1) IN GENERAL.— 

13 (A) IN GENERAL.—Subject to subpara14 graph (B), a covered entity shall be treated as 

15 being in compliance with section 164.502(b)(1) 

16 of title 45, Code of Federal Regulations, with 

17 respect to the use, disclosure, or request of pro18 tected health information described in such sec19 tion, only if the covered entity limits such pro20 tected health information, to the extent prac21 ticable, to the limited data set (as defined in 

22 section 164.514(e)(2) of such title) or, if needed 

23 by such entity, to the minimum necessary to ac24 complish the intended purpose of such use, dis25 closure, or request, respectively. 


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1 (B) GUIDANCE.—Not later than 18 

2 months after the date of the enactment of this 

3 section, the Secretary shall issue guidance on 

4 what constitutes ‘‘minimum necessary’’ for pur5 poses of subpart E of part 164 of title 45, Code 

6 of Federal Regulation. In issuing such guidance 

7 the Secretary shall take into consideration the 

8 guidance under section 4424(c). 

9 (C) SUNSET.—Subparagraph (A) shall not 

10 apply on and after the effective date on which 

11 the Secretary issues the guidance under sub12 paragraph (B). 

13 (2) DETERMINATION OF MINIMUM NEC14 ESSARY.—For purposes of paragraph (1), in the 

15 case of the disclosure of protected health informa16 tion, the covered entity or business associate dis17 closing such information shall determine what con18 stitutes the minimum necessary to accomplish the 

19 intended purpose of such disclosure. 

20 (3) APPLICATION OF EXCEPTIONS.—The excep21 tions described in section 164.502(b)(2) of title 45, 

22 Code of Federal Regulations, shall apply to the re23 quirement under paragraph (1) as of the effective 

24 date described in section 4423 in the same manner 


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1 that such exceptions apply to section 164.502(b)(1) 

2 of such title before such date. 

3 (4) RULE OF CONSTRUCTION.—Nothing in this 

4 subsection shall be construed as affecting the use, 

5 disclosure, or request of protected health information 

6 that has been de-identified. 

7 (c) ACCOUNTING OF CERTAIN PROTECTED HEALTH

8 INFORMATION DISCLOSURES REQUIRED IF COVERED EN9 TITY USES ELECTRONIC HEALTH RECORD.— 

10 (1) IN GENERAL.—In applying section 164.528 

11 of title 45, Code of Federal Regulations, in the case 

12 that a covered entity uses or maintains an electronic 

13 health record with respect to protected health infor14 mation— 

15 (A) the exception under paragraph 

16 (a)(1)(i) of such section shall not apply to dis17 closures through an electronic health record 

18 made by such entity of such information; and 

19 (B) an individual shall have a right to re20 ceive an accounting of disclosures described in 

21 such paragraph of such information made by 

22 such covered entity during only the three years 

23 prior to the date on which the accounting is re24 quested. 


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1 (2) REGULATIONS.—The Secretary shall pro2 mulgate regulations on what information shall be 

3 collected about each disclosure referred to in para4 graph (1)(A) not later than 18 months after the 

5 date on which the Secretary adopts standards on ac6 counting for disclosure described in the section 

7 3002(b)(2)(B)(iv) of the Public Health Service Act, 

8 as added by section 4101. Such regulations shall 

9 only require such information to be collected through 

10 an electronic health record in a manner that takes 

11 into account the interests of individuals in learning 

12 the circumstances under which their protected health 

13 information is being disclosed and takes into account 

14 the administrative burden of accounting for such 

15 disclosures. 

16 (3) CONSTRUCTION.—Nothing in this sub17 section shall be construed as requiring a covered en18 tity to account for disclosures of protected health in19 formation that are not made by such covered entity 

20 or by a business associate acting on behalf of the 

21 covered entity. 

22 (4) EFFECTIVE DATE.— 

23 (A) CURRENT USERS OF ELECTRONIC

24 RECORDS.—In the case of a covered entity inso25 far as it acquired an electronic health record as 


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1 of January 1, 2009, paragraph (1) shall apply 

2 to disclosures, with respect to protected health 

3 information, made by the covered entity from 

4 such a record on and after January 1, 2014. 

5 (B) OTHERS.—In the case of a covered en6 tity insofar as it acquires an electronic health 

7 record after January 1, 2009, paragraph (1) 

8 shall apply to disclosures, with respect to pro9 tected health information, made by the covered 

10 entity from such record on and after the later 

11 of the following: 

12 (i) January 1, 2011; or 

13 (ii) the date that it acquires an elec14 tronic health record. 

15 (d) REVIEW OF HEALTH CARE OPERATIONS.—Not 

16 later than 18 months after the date of the enactment of 

17 this title, the Secretary shall promulgate regulations to 

18 eliminate from the definition of health care operations 

19 under section 164.501 of title 45, Code of Federal Regula20 tions, those activities that can reasonably and efficiently 

21 be conducted through the use of information that is de22 identified (in accordance with the requirements of section 

23 164.514(b) of such title) or that should require a valid 

24 authorization for use or disclosure. In promulgating such 

25 regulations, the Secretary may choose to narrow or clarify 


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1 activities that the Secretary chooses to retain in the defini2 tion of health care operations and the Secretary shall take 

3 into account the report under section 424(d). In such reg4 ulations the Secretary shall specify the date on which such 

5 regulations shall apply to disclosures made by a covered 

6 entity, but in no case would such date be sooner than the 

7 date that is 24 months after the date of the enactment 

8 of this section. 

9 (e) PROHIBITION ON SALE OF ELECTRONIC HEALTH

10 RECORDS OR PROTECTED HEALTH INFORMATION.— 

11 (1) IN GENERAL.—Except as provided in para12 graph (2), a covered entity or business associate 

13 shall not directly or indirectly receive remuneration 

14 in exchange for any protected health information of 

15 an individual unless the covered entity obtained from 

16 the individual, in accordance with section 164.508 of 

17 title 45, Code of Federal Regulations, a valid au18 thorization that includes, in accordance with such 

19 section, a specification of whether the protected 

20 health information can be further exchanged for re21 muneration by the entity receiving protected health 

22 information of that individual. 

23 (2) EXCEPTIONS.—Paragraph (1) shall not 

24 apply in the following cases: 


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1 (A) The purpose of the exchange is for re2 search or public health activities (as described 

3 in sections 164.501, 164.512(i), and 164.512(b) 

4 of title 45, Code of Federal Regulations) and 

5 the price charged reflects the costs of prepara6 tion and transmittal of the data for such pur7 pose. 

8 (B) The purpose of the exchange is for the 

9 treatment of the individual and the price 

10 charges reflects not more than the costs of 

11 preparation and transmittal of the data for 

12 such purpose. 

13 (C) The purpose of the exchange is the 

14 health care operation specifically described in 

15 subparagraph (iv) of paragraph (6) of the defi16 nition of health care operations in section 

17 164.501 of title 45, Code of Federal Regula18 tions. 

19 (D) The purpose of the exchange is for re20 muneration that is provided by a covered entity 

21 to a business associate for activities involving 

22 the exchange of protected health information 

23 that the business associate undertakes on behalf 

24 of and at the specific request of the covered en25 tity pursuant to a business associate agreement. 


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1 (E) The purpose of the exchange is to pro2 vide an individual with a copy of the individ3 ual’s protected health information pursuant to 

4 section 164.524 of title 45, Code of Federal 

5 Regulations. 

6 (F) The purpose of the exchange is other7 wise determined by the Secretary in regulations 

8 to be similarly necessary and appropriate as the 

9 exceptions provided in subparagraphs (A) 

10 through (E). 

11 (3) REGULATIONS.—The Secretary shall pro12 mulgate regulations to carry out paragraph (this 

13 subsection, including exceptions described in para14 graph (2), not later than 18 months after the date 

15 of the enactment of this title. 

16 (4) EFFECTIVE DATE.—Paragraph (1) shall 

17 apply to exchanges occurring on or after the date 

18 that is 6 months after the date of the promulgation 

19 of final regulations implementing this subsection. 

20 (f) ACCESS TO CERTAIN INFORMATION IN ELEC21 TRONIC FORMAT.—In applying section 164.524 of title 

22 45, Code of Federal Regulations, in the case that a cov23 ered entity uses or maintains an electronic health record 

24 with respect to protected health information of an indi25 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 (g) CLARIFICATION.—Nothing in this subtitle shall 

13 constitute a waiver of any privilege otherwise applicable 

14 to an individual with respect to the protected health infor15 mation of such individual. 

16 SEC. 4406. CONDITIONS ON CERTAIN CONTACTS AS PART 

17 OF HEALTH CARE OPERATIONS. 

18 (a) MARKETING.— 

19 (1) IN GENERAL.—A communication by a cov20 ered entity or business associate that is about a 

21 product or service and that encourages recipients of 

22 the communication to purchase or use the product 

23 or service shall not be considered a health care oper24 ation for purposes of subpart E of part 164 of title 

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1 nication is made as described in subparagraph (i), 

2 (ii), or (iii) of paragraph (1) of the definition of 

3 marketing in section 164.501 of such title. 

4 (2) PAYMENT FOR CERTAIN COMMUNICA5 TIONS.—A covered entity or business associate may 

6 not receive direct or indirect payment in exchange 

7 for making any communication described in sub8 paragraph (i), (ii), or (iii) of paragraph (1) of the 

9 definition of marketing in section 164.501 of title 

10 45, Code of Federal Regulations, except— 

11 (A) a business associate of a covered entity 

12 may receive payment from the covered entity 

13 for making any such communication on behalf 

14 of the covered entity that is consistent with the 

15 written contract (or other written arrangement) 

16 described in section 164.502(e)(2) of such title 

17 between such business associate and covered en18 tity; or 

19 (B) a covered entity may receive payment 

20 in exchange for making any such communica21 tion if the entity obtains from the recipient of 

22 the communication, in accordance with section 

23 164.508 of title 45, Code of Federal Regula24 tions, a valid authorization (as described in 


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1 paragraph (b) of such section) with respect to 

2 such communication. 

3 (b) FUNDRAISING.—Fundraising for the benefit of a 

4 covered entity shall not be considered a health care oper5 ation for purposes of section 164.501 of title 45, Code of 

6 Federal Regulations. 

7 (c) EFFECTIVE DATE.—This section shall apply to 

8 contracting occurring on or after the effective date speci9 fied under section 4423. 

10 SEC. 4407. TEMPORARY BREACH NOTIFICATION REQUIRE11 MENT FOR VENDORS OF PERSONAL HEALTH 

12 RECORDS AND OTHER NON-HIPAA COVERED 

13 ENTITIES. 

14 (a) IN GENERAL.—In accordance with subsection (c), 

15 each vendor of personal health records, following the dis16 covery of a breach of security of unsecured PHR identifi17 able health information that is in a personal health record 

18 maintained or offered by such vendor, and each entity de19 scribed in clause (ii) or (iii) of section 4424(b)(1)(A), fol20 lowing the discovery of a breach of security of such infor21 mation that is obtained through a product or service pro22 vided by such entity, shall— 

23 (1) notify each individual who is a citizen or 

24 resident of the United States whose unsecured PHR 

25 identifiable health information was acquired by an 


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1 unauthorized person as a result of such a breach of 

2 security; and 

3 (2) notify the Federal Trade Commission. 

4 (b) NOTIFICATION BY THIRD PARTY SERVICE PRO5 VIDERS.—A third party service provider that provides 

6 services to a vendor of personal health records or to an 

7 entity described in clause (ii) or (iii) of section 

8 4424(b)(1)(A) in connection with the offering or mainte9 nance of a personal health record or a related product or 

10 service and that accesses, maintains, retains, modifies, 

11 records, stores, destroys, or otherwise holds, uses, or dis12 closes unsecured PHR identifiable health information in 

13 such a record as a result of such services shall, following 

14 the discovery of a breach of security of such information, 

15 notify such vendor or entity, respectively, of such breach. 

16 Such notice shall include the identification of each indi17 vidual whose unsecured PHR identifiable health informa18 tion has been, or is reasonably believed to have been, 

19 accessed, acquired, or disclosed during such breach. 

20 (c) APPLICATION OF REQUIREMENTS FOR TIMELI21 NESS, METHOD, AND CONTENT OF NOTIFICATIONS.— 

22 Subsections (c), (d), (e), and (f) of section 402 shall apply 

23 to a notification required under subsection (a) and a ven24 dor of personal health records, an entity described in sub25 section (a) and a third party service provider described 


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1 in subsection (b), with respect to a breach of security 

2 under subsection (a) of unsecured PHR identifiable health 

3 information in such records maintained or offered by such 

4 vendor, in a manner specified by the Federal Trade Com5 mission. 

6 (d) NOTIFICATION OF THE SECRETARY.—Upon re7 ceipt of a notification of a breach of security under sub8 section (a)(2), the Federal Trade Commission shall notify 

9 the Secretary of such breach. 

10 (e) ENFORCEMENT.—A violation of subsection (a) or 

11 (b) shall be treated as an unfair and deceptive act or prac12 tice in violation of a regulation under section 18(a)(1)(B) 

13 of the Federal Trade Commission Act (15 U.S.C. 

14 57a(a)(1)(B)) regarding unfair or deceptive acts or prac15 tices. 

16 (f) DEFINITIONS.—For purposes of this section: 

17 (1) BREACH OF SECURITY.—The term ‘‘breach 

18 of security’’ means, with respect to unsecured PHR 

19 identifiable health information of an individual in a 

20 personal health record, acquisition of such informa21 tion without the authorization of the individual. 

22 (2) PHR IDENTIFIABLE HEALTH INFORMA23 TION.—The term ‘‘PHR identifiable health informa24 tion’’ means individually identifiable health informa25 tion, as defined in section 1171(6) of the Social SeVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00560 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 curity Act (42 U.S.C. 1320d(6)), and includes, with 

2 respect to an individual, information— 

3 (A) that is provided by or on behalf of the 

4 individual; and 

5 (B) that identifies the individual or with 

6 respect to which there is a reasonable basis to 

7 believe that the information can be used to 

8 identify the individual. 

9 (3) UNSECURED PHR IDENTIFIABLE HEALTH

10 INFORMATION.— 

11 (A) IN GENERAL.—Subject to subpara12 graph (B), the term ‘‘unsecured PHR identifi13 able health information’’ means PHR identifi14 able health information that is not protected 

15 through the use of a technology or methodology 

16 specified by the Secretary in the guidance 

17 issued under section 4402(h)(2). 

18 (B) EXCEPTION IN CASE TIMELY GUID19 ANCE NOT ISSUED.—In the case that the Sec20 retary does not issue guidance under section 

21 4402(h)(2) by the date specified in such sec22 tion, for purposes of this section, the term ‘‘un23 secured PHR identifiable health information’’ 

24 shall mean PHR identifiable health information 

25 that is not secured by a technology standard 


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1 that renders protected health information unus2 able, unreadable, or indecipherable to unauthor3 ized individuals and that is developed or en4 dorsed by a standards developing organization 

5 that is accredited by the American National 

6 Standards Institute. 

7 (g) REGULATIONS; EFFECTIVE DATE; SUNSET.— 

8 (1) REGULATIONS; EFFECTIVE DATE.—To 

9 carry out this section, the Secretary of Health and 

10 Human Services shall promulgate interim final regu11 lations by not later than the date that is 180 days 

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

13 provisions of this section shall apply to breaches of 

14 security that are discovered on or after the date that 

15 is 30 days after the date of publication of such in16 terim final regulations. 

17 (2) SUNSET.—The provisions of this section 

18 shall not apply to breaches of security occurring on 

19 or after the earlier of the following the dates: 

20 (A) The date on which a standard relating 

21 to requirements for entities that are not covered 

22 entities that includes requirements relating to 

23 breach notification has been promulgated by the 

24 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. 4408. 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. 4409. CLARIFICATION OF APPLICATION OF WRONGFUL 

4 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. 4410. 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 ‘‘(c) 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 (c)’’; 

9 (B) in paragraph (2)(A)— 

10 (i) in the matter before clause (i), 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 (c)’’; 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 (c)’’ 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 ‘‘(d) 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. 4411. 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 SEC. 4412. SPECIAL RULE FOR INFORMATION TO REDUCE 

2 MEDICATION ERRORS AND IMPROVE PA3 TIENT SAFETY. 

4 Nothing under this subtitle shall prevent a phar5 macist from communicating with patients in order to re6 duce medication errors and improve patient safety pro7 vided there is no remuneration other than for the treat8 ment of the individual and payment for such treatment 

9 of the individual as defined in 45 CFR 164.501. The 

10 Secretary may by regulation authorize a pharmacy to re11 ceive remuneration that does not exceed their reasonable 

12 out-of-pocket costs for such communications if the Sec13 retary determines that allowing this remuneration im14 proves patient care and protects protected health informa15 tion. 

16 PART II—RELATIONSHIP TO OTHER LAWS; REGU17 LATORY REFERENCES; EFFECTIVE DATE; RE18 PORTS 

19 SEC. 4421. RELATIONSHIP TO OTHER LAWS. 

20 (a) APPLICATION OF HIPAA STATE PREEMPTION.— 

21 Section 1178 of the Social Security Act (42 U.S.C. 

22 1320d–7) shall apply to a provision or requirement under 

23 this subtitle in the same manner that such section applies 

24 to a provision or requirement under part C of title XI of 

25 such Act or a standard or implementation specification 


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1 adopted or established under sections 1172 through 1174 

2 of such Act. 

3 (b) HEALTH INSURANCE PORTABILITY AND AC4 COUNTABILITY ACT.—The standards governing the pri5 vacy and security of individually identifiable health infor6 mation promulgated by the Secretary under sections 

7 262(a) and 264 of the Health Insurance Portability and 

8 Accountability Act of 1996 shall remain in effect to the 

9 extent that they are consistent with this subtitle. The Sec10 retary shall by rule amend such Federal regulations as re11 quired to make such regulations consistent with this sub12 title. 

13 SEC. 4422. REGULATORY REFERENCES. 

14 Each reference in this subtitle to a provision of the 

15 Code of Federal Regulations refers to such provision as 

16 in effect on the date of the enactment of this title (or to 

17 the most recent update of such provision). 

18 SEC. 4423. EFFECTIVE DATE. 

19 Except as otherwise specifically provided, the provi20 sions of part I shall take effect on the date that is 12 

21 months after the date of the enactment of this title. 

22 SEC. 4424. STUDIES, REPORTS, GUIDANCE. 

23 (a) REPORT ON COMPLIANCE.— 

24 (1) IN GENERAL.—For the first year beginning 

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1 nually thereafter, the Secretary shall prepare and 

2 submit to the Committee on Health, Education, 

3 Labor, and Pensions of the Senate and the Com4 mittee on Ways and Means and the Committee on 

5 Energy and Commerce of the House of Representa6 tives a report concerning complaints of alleged viola7 tions of law, including the provisions of this subtitle 

8 as well as the provisions of subparts C and E of part 

9 164 of title 45, Code of Federal Regulations, (as 

10 such provisions are in effect as of the date of enact11 ment of this Act) relating to privacy and security of 

12 health information that are received by the Secretary 

13 during the year for which the report is being pre14 pared. Each such report shall include, with respect 

15 to such complaints received during the year— 

16 (A) the number of such complaints; 

17 (B) the number of such complaints re18 solved informally, a summary of the types of 

19 such complaints so resolved, and the number of 

20 covered entities that received technical assist21 ance from the Secretary during such year in 

22 order to achieve compliance with such provi23 sions and the types of such technical assistance 

24 provided; 


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1 (C) the number of such complaints that 

2 have resulted in the imposition of civil monetary 

3 penalties or have been resolved through mone4 tary settlements, including the nature of the 

5 complaints involved and the amount paid in 

6 each penalty or settlement; 

7 (D) the number of compliance reviews con8 ducted and the outcome of each such review; 

9 (E) the number of subpoenas or inquiries 

10 issued; 

11 (F) the Secretary’s plan for improving 

12 compliance with and enforcement of such provi13 sions for the following year; and 

14 (G) the number of audits performed and a 

15 summary of audit findings pursuant to section 

16 4411. 

17 (2) AVAILABILITY TO PUBLIC.—Each report 

18 under paragraph (1) shall be made available to the 

19 public on the Internet website of the Department of 

20 Health and Human Services. 

21 (b) STUDY AND REPORT ON APPLICATION OF PRI22 VACY AND SECURITY REQUIREMENTS TO NON-HIPAA 

23 COVERED ENTITIES.— 

24 (1) STUDY.—Not later than one year after the 

25 date of the enactment of this title, the Secretary, in 


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1 consultation with the Federal Trade Commission, 

2 shall conduct a study, and submit a report under 

3 paragraph (2), on privacy and security requirements 

4 for entities that are not covered entities or business 

5 associates as of the date of the enactment of this 

6 title, including— 

7 (A) requirements relating to security, pri8 vacy, and notification in the case of a breach of 

9 security or privacy (including the applicability 

10 of an exemption to notification in the case of 

11 individually identifiable health information that 

12 has been rendered unusable, unreadable, or in13 decipherable through technologies or methodolo14 gies recognized by appropriate professional or15 ganization or standard setting bodies to provide 

16 effective security for the information) that 

17 should be applied to— 

18 (i) vendors of personal health records; 

19 (ii) entities that offer products or 

20 services through the website of a vendor of 

21 personal health records; 

22 (iii) entities that are not covered enti23 ties and that offer products or services 

24 through the websites of covered entities 


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1 that offer individuals personal health 

2 records; 

3 (iv) entities that are not covered enti4 ties and that access information in a per5 sonal health record or send information to 

6 a personal health record; and 

7 (v) third party service providers used 

8 by a vendor or entity described in clause 

9 (i), (ii), (iii), or (iv) to assist in providing 

10 personal health record products or services; 

11 (B) a determination of which Federal gov12 ernment agency is best equipped to enforce 

13 such requirements recommended to be applied 

14 to such vendors, entities, and service providers 

15 under subparagraph (A); and 

16 (C) a timeframe for implementing regula17 tions based on such findings. 

18 (2) REPORT.—The Secretary shall submit to 

19 the Committee on Finance, the Committee on 

20 Health, Education, Labor, and Pensions, and the 

21 Committee on Commerce of the Senate and the 

22 Committee on Ways and Means and the Committee 

23 on Energy and Commerce of the House of Rep24 resentatives a report on the findings of the study 

25 under paragraph (1) and shall include in such report 


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1 recommendations on the privacy and security re2 quirements described in such paragraph. 

3 (c) GUIDANCE ON IMPLEMENTATION SPECIFICATION

4 TO DE-IDENTIFY PROTECTED HEALTH INFORMATION.— 

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

6 of this title, the Secretary shall, in consultation with stake7 holders, issue guidance on how best to implement the re8 quirements for the de-identification of protected health in9 formation under section 164.514(b) of title 45, Code of 

10 Federal Regulations. 

11 (d) GAO REPORT ON TREATMENT DISCLOSURES.— 

12 Not later than one year after the date of the enactment 

13 of this title, the Comptroller General of the United States 

14 shall submit to the Committee on Health, Education, 

15 Labor, and Pensions of the Senate and the Committee on 

16 Ways and Means and the Committee on Energy and Com17 merce of the House of Representatives a report on the 

18 best practices related to the disclosure among health care 

19 providers of protected health information of an individual 

20 for purposes of treatment of such individual. Such report 

21 shall include an examination of the best practices imple22 mented by States and by other entities, such as health 

23 information exchanges and regional health information or24 ganizations, an examination of the extent to which such 

25 best practices are successful with respect to the quality 


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1 of the resulting health care provided to the individual and 

2 with respect to the ability of the health care provider to 

3 manage such best practices, and an examination of the 

4 use of electronic informed consent for disclosing protected 

5 health information for treatment, payment, and health 

6 care operations. 

7 Subtitle E—Miscellaneous 

8 Medicare Provisions 

9 SEC. 4501. MORATORIA ON CERTAIN MEDICARE REGULA10 TIONS. 

11 (a) DELAY IN PHASE OUT OF MEDICARE HOSPICE

12 BUDGET NEUTRALITY ADJUSTMENT FACTOR DURING

13 FISCAL YEAR 2009.—Notwithstanding any other provi14 sion of law, including the final rule published on August 

15 8, 2008, 73 Federal Register 46464 et seq., relating to 

16 Medicare Program; Hospice Wage Index for Fiscal Year 

17 2009, the Secretary of Health and Human Services shall 

18 not phase out or eliminate the budget neutrality adjust19 ment factor in the Medicare hospice wage index before Oc20 tober 1, 2009, and the Secretary shall recompute and 

21 apply the final Medicare hospice wage index for fiscal year 

22 2009 as if there had been no reduction in the budget neu23 trality adjustment factor. 


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1 (b) NON-APPLICATION OF PHASED-OUT INDIRECT

2 MEDICAL EDUCATION (IME) ADJUSTMENT FACTOR FOR

3 FISCAL YEAR 2009.— 

4 (1) IN GENERAL.—Section 412.322 of title 42, 

5 Code of Federal Regulations, shall be applied with6 out regard to paragraph (c) of such section, and the 

7 Secretary of Health and Human Services shall re8 compute payments for discharges occurring on or 

9 after October 1, 2008, as if such paragraph had 

10 never been in effect. 

11 (2) NO EFFECT ON SUBSEQUENT YEARS.— 

12 Nothing in paragraph (1) shall be construed as hav13 ing any effect on the application of paragraph (d) of 

14 section 412.322 of title 42, Code of Federal Regula15 tions. 

16 (c) FUNDING FOR IMPLEMENTATION.—In addition to 

17 funds otherwise available, for purposes of implementing 

18 the provisions of subsections (a) and (b), including costs 

19 incurred in reprocessing claims in carrying out such provi20 sions, the Secretary of Health and Human Services shall 

21 provide for the transfer from the Federal Hospital Insur22 ance Trust Fund established under section 1817 of the 

23 Social Security Act (42 U.S.C. 1395i) to the Centers for 

24 Medicare & Medicaid Services Program Management Ac25 count of $2,000,000 for fiscal year 2009. 


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1 SEC. 4502. LONG-TERM CARE HOSPITAL TECHNICAL COR2 RECTIONS. 

3 (a) PAYMENT.—Subsection (c) of section 114 of the 

4 Medicare, Medicaid, and SCHIP Extension Act of 2007 

5 (Public Law 110–173) is amended— 

6 (1) in paragraph (1)— 

7 (A) by amending the heading to read as 

8 follows: ‘‘DELAY IN APPLICATION OF 25 PER9 CENT PATIENT THRESHOLD PAYMENT ADJUST10 MENT’’; 

11 (B) by striking ‘‘the date of the enactment 

12 of this Act’’ and inserting ‘‘July 1, 2007,’’; and 

13 (C) in subparagraph (A), by inserting ‘‘or 

14 to a long-term care hospital, or satellite facility, 

15 that as of December 29, 2007, was co-located 

16 with an entity that is a provider-based, off-cam17 pus location of a subsection (d) hospital which 

18 did not provide services payable under section 

19 1886(d) of the Social Security Act at the off20 campus location’’ after ‘‘freestanding long-term 

21 care hospitals’’; and 

22 (2) in paragraph (2)— 

23 (A) in subparagraph (B)(ii), by inserting 

24 ‘‘or that is described in section 412.22(h)(3)(i) 

25 of such title’’ before the period; and 


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1 (B) in subparagraph (C), by striking ‘‘the 

2 date of the enactment of this Act’’ and insert3 ing ‘‘October 1, 2007 (or July 1, 2007, in the 

4 case of a satellite facility described in section 

5 412.22(h)(3)(i) of title 42, Code of Federal 

6 Regulations)’’. 

7 (b) MORATORIUM.—Subsection (d)(3)(A) of such sec8 tion is amended by striking ‘‘if the hospital or facility’’ 

9 and inserting ‘‘if the hospital or facility obtained a certifi10 cate of need for an increase in beds that is in a State 

11 for which such certificate of need is required and that was 

12 issued on or after April 1, 2005, and before December 

13 29, 2007, or if the hospital or facility’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall be effective and apply as if included in 

16 the enactment of the Medicare, Medicaid, and SCHIP Ex17 tension Act of 2007 (Public Law 110–173). 

18 TITLE V—MEDICAID 

19 PROVISIONS 

20 SEC. 5000. TABLE OF CONTENTS OF TITLE. 

21 The table of contents of this title is as follows: 

Sec. 5000. Table of contents of title. 

Sec. 5001. Temporary increase of Medicaid FMAP. 

Sec. 5002. Moratoria on certain regulations. 

Sec. 5003. Transitional Medicaid assistance (TMA). 

Sec. 5004. State eligibility option for family planning services. 

Sec. 5005. Protections for Indians under Medicaid and CHIP. 

Sec. 5006. Consultation on Medicaid and CHIP. 

Sec. 5007. Temporary increase in DSH allotments during recession. 


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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 

22 year 2008, fiscal year 2009, or fiscal year 2010 shall 

23 be substituted for the State’s FMAP for fiscal year 

24 2011, before the application of this section, but only 

25 for the first calendar quarter in fiscal year 2011. 

26 (b) GENERAL 4.9 PERCENTAGE POINT INCREASE.— 


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1 (1) IN GENERAL.—Subject to subsections (e), 

2 (f), and (g) and paragraph (2), for each State for 

3 calendar quarters during the recession adjustment 

4 period (as defined in subsection (h)(2)), the FMAP 

5 (after the application of subsection (a)) shall be in6 creased (without regard to any limitation otherwise 

7 specified in section 1905(b) of the Social Security 

8 Act) by 4.9 percentage points. 

9 (2) SPECIAL ELECTION FOR TERRITORIES.—In 

10 the case of a State that is not one of the 50 States 

11 or the District of Columbia, paragraph (1) shall only 

12 apply if the State makes a one-time election, in a 

13 form and manner specified by the Secretary and for 

14 the entire recession adjustment period, to apply the 

15 increase in FMAP under paragraph (1) and a 10 

16 percent increase under subsection (d) instead of ap17 plying a 20 percent increase under subsection (d). 

18 (c) ADDITIONAL ADJUSTMENT TO REFLECT IN19 CREASE IN UNEMPLOYMENT.— 

20 (1) IN GENERAL.—Subject to subsections (e), 

21 (f), and (g), in the case of a State that is a high 

22 unemployment State (as defined in paragraph (2)) 

23 for a calendar quarter during the recession adjust24 ment period, the FMAP (taking into account the ap25 plication of subsections (a) and (b)) for such quarter 


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1 shall be further increased by the high unemployment 

2 percentage point adjustment specified in paragraph 

3 (3) for the State for the quarter. 

4 (2) HIGH UNEMPLOYMENT STATE.— 

5 (A) IN GENERAL.—In this subsection, sub6 ject to subparagraph (B), the term ‘‘high unem7 ployment State’’ means, with respect to a cal8 endar quarter in the recession adjustment pe9 riod, a State that is 1 of the 50 States or the 

10 District of Columbia and for which the State 

11 unemployment increase percentage (as com12 puted under paragraph (5)) for the quarter is 

13 not less than 1.5 percentage points. 

14 (B) MAINTENANCE OF STATUS.—If a 

15 State is a high unemployment State for a cal16 endar quarter, it shall remain a high unemploy17 ment State for each subsequent calendar quar18 ter ending before July 1, 2010. 

19 (3) HIGH UNEMPLOYMENT PERCENTAGE POINT

20 ADJUSTMENT.— 

21 (A) IN GENERAL.—The high unemploy22 ment percentage point adjustment specified in 

23 this paragraph for a high unemployment State 

24 for a quarter is equal to the product of— 


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1 (i) the SMAP for such State and 

2 quarter (determined after the application 

3 of subsection (a) and before the application 

4 of subsection (b)); and 

5 (ii) subject to subparagraph (B), the 

6 State unemployment reduction factor spec7 ified in paragraph (4) for the State and 

8 quarter. 

9 (B) MAINTENANCE OF ADJUSTMENT

10 LEVEL FOR CERTAIN QUARTERS.—In no case 

11 shall the State unemployment reduction factor 

12 applied under subparagraph (A)(ii) for a State 

13 for a quarter (beginning on or after January 1, 

14 2009, and ending before July 1, 2010) be less 

15 than the State unemployment reduction factor 

16 applied to the State for the previous quarter 

17 (taking into account the application of this sub18 paragraph). 

19 (4) STATE UNEMPLOYMENT REDUCTION FAC20 TOR.—In the case of a high unemployment State for 

21 which the State unemployment increase percentage 

22 (as computed under paragraph (5)) with respect to 

23 a calendar quarter is— 

24 (A) not less than 1.5, but is less than 2.5, 

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1 duction factor for the State and quarter is 6 

2 percent; 

3 (B) not less than 2.5, but is less than 3.5, 

4 percentage points, the State unemployment re5 duction factor for the State and quarter is 12 

6 percent; or 

7 (C) not less than 3.5 percentage points, 

8 the State unemployment reduction factor for 

9 the State and quarter is 14 percent. 

10 (5) COMPUTATION OF STATE UNEMPLOYMENT

11 INCREASE PERCENTAGE.— 

12 (A) IN GENERAL.—In this subsection, the 

13 ‘‘State unemployment increase percentage’’ for 

14 a State for a calendar quarter is equal to the 

15 number of percentage points (if any) by 

16 which— 

17 (i) the average monthly unemployment 

18 rate for the State for months in the most 

19 recent previous 3-consecutive-month period 

20 for which data are available, subject to 

21 subparagraph (C); exceeds 

22 (ii) the lowest average monthly unem23 ployment rate for the State for any 3-con24 secutive-month period preceding the period 


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1 described in clause (i) and beginning on or 

2 after January 1, 2006. 

3 (B) AVERAGE MONTHLY UNEMPLOYMENT

4 RATE DEFINED.—In this paragraph, the term 

5 ‘‘average monthly unemployment rate’’ means 

6 the average of the monthly number unemployed, 

7 divided by the average of the monthly civilian 

8 labor force, seasonally adjusted, as determined 

9 based on the most recent monthly publications 

10 of the Bureau of Labor Statistics of the De11 partment of Labor. 

12 (C) SPECIAL RULE.—With respect to— 

13 (i) the first 2 calendar quarters of the 

14 recession adjustment period, the most re15 cent previous 3-consecutive-month period 

16 described in subparagraph (A)(i) shall be 

17 the 3-consecutive-month period beginning 

18 with October 2008; and 

19 (ii) the last 2 calendar quarters of the 

20 recession adjustment period, the most re21 cent previous 3-consecutive-month period 

22 described in such subparagraph shall be 

23 the 3-consecutive-month period beginning 

24 with December 2009. 


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1 (d) INCREASE IN CAP ON MEDICAID PAYMENTS TO

2 TERRITORIES.—Subject to subsections (f) and (g) , with 

3 respect to entire fiscal years occurring during the reces4 sion adjustment period and with respect to fiscal years 

5 only a portion of which occurs during such period (and 

6 in proportion to the portion of the fiscal year that occurs 

7 during such period), the amounts otherwise determined for 

8 Puerto Rico, the Virgin Islands, Guam, the Northern Mar9 iana Islands, and American Samoa under subsections (f) 

10 and (g) of section 1108 of the Social Security Act (42 

11 U.S.C. 1308) shall each be increased by 20 percent (or, 

12 in the case of an election under subsection (b)(2), 10 per13 cent). 

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— 

17 (1) the increases applied under subsections (a), 

18 (b), and (c) shall not apply with respect— 

19 (A) to payments under parts A, B, and D 

20 of title IV or title XXI of such Act (42 U.S.C. 

21 601 et seq. and 1397aa et seq.); 

22 (B) to payments under title XIX of such 

23 Act that are based on the enhanced FMAP de24 scribed in section 2105(b) of such Act (42 

25 U.S.C. 1397ee(b)); and 


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1 (C) to payments for disproportionate share 

2 hospital (DSH) payment adjustments under 

3 section 1923 of such Act (42 U.S.C. 1396r–4); 

4 and 

5 (2) the increase provided under subsection (c) 

6 shall not apply with respect to payments under part 

7 E of title IV of such Act. 

8 (f) STATE INELIGIBILITY AND LIMITATION.— 

9 (1) IN GENERAL.—Subject to paragraphs (2) 

10 and (3), a State is not eligible for an increase in its 

11 FMAP under subsection (a), (b), or (c), or an in12 crease in a cap amount under subsection (d), if eligi13 bility standards, methodologies, or procedures under 

14 its State plan under title XIX of the Social Security 

15 Act (including any waiver under such title or under 

16 section 1115 of such Act (42 U.S.C. 1315)) are 

17 more restrictive than the eligibility standards, meth18 odologies, or procedures, respectively, under such 

19 plan (or waiver) as in effect on July 1, 2008. 

20 (2) STATE REINSTATEMENT OF ELIGIBILITY

21 PERMITTED.—Subject to paragraph (3), a State that 

22 has restricted eligibility standards, methodologies, or 

23 procedures under its State plan under title XIX of 

24 the Social Security Act (including any waiver under 

25 such title or under section 1115 of such Act (42 


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1 U.S.C. 1315)) after July 1, 2008, is no longer ineli2 gible under paragraph (1) beginning with the first 

3 calendar quarter in which the State has reinstated 

4 eligibility standards, methodologies, or procedures 

5 that are no more restrictive than the eligibility 

6 standards, methodologies, or procedures, respec7 tively, under such plan (or waiver) as in effect on 

8 July 1, 2008. 

9 (3) SPECIAL RULES.—A State shall not be in10 eligible under paragraph (1)— 

11 (A) for the calendar quarters before July 

12 1, 2009, on the basis of a restriction that was 

13 applied after July 1, 2008, and before the date 

14 of the enactment of this Act, if the State, prior 

15 to July 1, 2009, reinstated eligibility standards, 

16 methodologies, or procedures that are no more 

17 restrictive than the eligibility standards, meth18 odologies, or procedures, respectively, under 

19 such plan (or waiver) as in effect on July 1, 

20 2008; or 

21 (B) on the basis of a restriction that was 

22 effective under State law as of July 1, 2008, 

23 and would have been in effect as of such date, 

24 but for a delay (of not longer than 1 calendar 

25 quarter) in the approval of a request for a new 


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1 waiver under section 1115 of such Act with re2 spect to such restriction. 

3 (4) STATE’S APPLICATION TOWARD RAINY DAY

4 FUND.—A State is not eligible for an increase in its 

5 FMAP under subsection (b) or (c), or an increase in 

6 a cap amount under subsection (d), if any amounts 

7 attributable (directly or indirectly) to such increase 

8 are deposited or credited into any reserve or rainy 

9 day fund of the State. 

10 (5) RULE OF CONSTRUCTION.—Nothing in 

11 paragraph (1) or (2) shall be construed as affecting 

12 a State’s flexibility with respect to benefits offered 

13 under the State Medicaid program under title XIX 

14 of the Social Security Act (42 U.S.C. 1396 et seq.) 

15 (including any waiver under such title or under sec16 tion 1115 of such Act (42 U.S.C. 1315)). 

17 (6) NO WAIVER AUTHORITY.—The Secretary 

18 may not waive the application of this subsection or 

19 subsection (g) under section 1115 of the Social Se20 curity Act or otherwise. 

21 (g) REQUIREMENT FOR CERTAIN STATES.—In the 

22 case of a State that requires political subdivisions within 

23 the State to contribute toward the non-Federal share of 

24 expenditures under the State Medicaid plan required 

25 under section 1902(a)(2) of the Social Security Act (42 


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1 U.S.C. 1396a(a)(2)), the State is not eligible for an in2 crease in its FMAP under subsection (a), (b), or (c), or 

3 an increase in a cap amount under subsection (d), if it 

4 requires that such political subdivisions pay a greater per5 centage of the non-Federal share of such expenditures for 

6 quarters during the recession adjustment period, than the 

7 percentage that would have been required by the State 

8 under such plan on September 30, 2008, prior to applica9 tion of this section. 

10 (h) DEFINITIONS.—In this section, except as other11 wise provided: 

12 (1) FMAP.—The term ‘‘FMAP’’ means the 

13 Federal medical assistance percentage, as defined in 

14 section 1905(b) of the Social Security Act (42 

15 U.S.C. 1396d(b)), as determined without regard to 

16 this section except as otherwise specified. 

17 (2) RECESSION ADJUSTMENT PERIOD.—The 

18 term ‘‘recession adjustment period’’ means the pe19 riod beginning on October 1, 2008, and ending on 

20 December 31, 2010. 

21 (3) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of Health and Human Services. 

23 (4) SMAP.—The term ‘‘SMAP’’ means, for a 

24 State, 100 percent minus the Federal medical assist25 ance percentage. 


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1 (5) STATE.—The term ‘‘State’’ has the mean2 ing given such term in section 1101(a)(1) of the So3 cial Security Act (42 U.S.C. 1301(a)(1)) for pur4 poses of title XIX of the Social Security Act (42 

5 U.S.C. 1396 et seq.). 

6 (i) SUNSET.—This section shall not apply to items 

7 and services furnished after the end of the recession ad8 justment period. 

9 SEC. 5002. MORATORIA ON CERTAIN REGULATIONS. 

10 (a) EXTENSION OF MORATORIA ON CERTAIN MED11 ICAID REGULATIONS.—The following sections are each 

12 amended by striking ‘‘April 1, 2009’’ and inserting ‘‘July 

13 1, 2009’’: 

14 (1) Section 7002(a)(1) of the U.S. Troop Read15 iness, Veterans’ Care, Katrina Recovery, and Iraq 

16 Accountability Appropriations Act, 2007 (Public 

17 Law 110–28), as amended by section 7001(a)(1) of 

18 the Supplemental Appropriations Act, 2008 (Public 

19 Law 110–252). 

20 (2) Section 206 of the Medicare, Medicaid, and 

21 SCHIP Extension Act of 2007 (Public Law 110- 

22 173), as amended by section 7001(a)(2) of the Sup23 plemental Appropriations Act, 2008 (Public Law 

24 110–252). 


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1 (3) Section 7001(a)(3)(A) of the Supplemental 

2 Appropriations Act, 2008 (Public Law 110–252). 

3 (b) ADDITIONAL MEDICAID MORATORIUM.—Not4 withstanding any other provision of law, with respect to 

5 expenditures for services furnished during the period be6 ginning on December 8, 2008 and ending on June 30, 

7 2009, the Secretary of Health and Human Services shall 

8 not take any action (through promulgation of regulation, 

9 issuance of regulatory guidance, use of Federal payment 

10 audit procedures, or other administrative action, policy, or 

11 practice, including a Medical Assistance Manual trans12 mittal or letter to State Medicaid directors) to implement 

13 the final regulation relating to clarification of the defini14 tion of outpatient hospital facility services under the Med15 icaid program published on November 7, 2008 (73 Federal 

16 Register 66187). 

17 SEC. 5003. TRANSITIONAL MEDICAID ASSISTANCE (TMA). 

18 (a) 18-MONTH EXTENSION.— 

19 (1) IN GENERAL.—Sections 1902(e)(1)(B) and 

20 1925(f) of the Social Security Act (42 U.S.C. 

21 1396a(e)(1)(B), 1396r–6(f)) are each amended by 

22 striking ‘‘September 30, 2003’’ and inserting ‘‘De23 cember 31, 2010’’. 

24 (2) EFFECTIVE DATE.—The amendments made 

25 by this subsection shall take effect on July 1, 2009. 


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1 (b) STATE OPTION OF INITIAL 12-MONTH ELIGI2 BILITY.—Section 1925 of the Social Security Act (42 

3 U.S.C. 1396r–6) is amended— 

4 (1) in subsection (a)(1), by inserting ‘‘but sub5 ject to paragraph (5)’’ after ‘‘Notwithstanding any 

6 other provision of this title’’; 

7 (2) by adding at the end of subsection (a) the 

8 following: 

9 ‘‘(5) OPTION OF 12-MONTH INITIAL ELIGIBILITY

10 PERIOD.—A State may elect to treat any reference 

11 in this subsection to a 6-month period (or 6 months) 

12 as a reference to a 12-month period (or 12 months). 

13 In the case of such an election, subsection (b) shall 

14 not apply.’’; and 

15 (3) in subsection (b)(1), by inserting ‘‘but sub16 ject to subsection (a)(5)’’ after ‘‘Notwithstanding 

17 any other provision of this title’’. 

18 (c) REMOVAL OF REQUIREMENT FOR PREVIOUS RE19 CEIPT OF MEDICAL ASSISTANCE.—Section 1925(a)(1) of 

20 such Act (42 U.S.C. 1396r–6(a)(1)), as amended by sub21 section (b)(1), is further amended— 

22 (1) by inserting ‘‘subparagraph (B) and’’ before 

23 ‘‘paragraph (5)’’; 

24 (2) by redesignating the matter after ‘‘RE25 QUIREMENT.—’’ as a subparagraph (A) with the 


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1 heading ‘‘IN GENERAL.—’’ and with the same inden2 tation as subparagraph (B) (as added by paragraph 

3 (3)); and 

4 (3) by adding at the end the following: 

5 ‘‘(B) STATE OPTION TO WAIVE REQUIRE6 MENT FOR 3 MONTHS BEFORE RECEIPT OF

7 MEDICAL ASSISTANCE.—A State may, at its op8 tion, elect also to apply subparagraph (A) in 

9 the case of a family that was receiving such aid 

10 for fewer than three months or that had applied 

11 for and was eligible for such aid for fewer than 

12 3 months during the 6 immediately preceding 

13 months described in such subparagraph.’’. 

14 (d) CMS REPORT ON ENROLLMENT AND PARTICIPA15 TION RATES UNDER TMA.—Section 1925 of such Act (42 

16 U.S.C. 1396r–6), as amended by this section, is further 

17 amended by adding at the end the following new sub18 section: 

19 ‘‘(g) COLLECTION AND REPORTING OF PARTICIPA20 TION INFORMATION.— 

21 ‘‘(1) COLLECTION OF INFORMATION FROM

22 STATES.—Each State shall collect and submit to the 

23 Secretary (and make publicly available), in a format 

24 specified by the Secretary, information on average 

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1 tion rates for adults and children under this section 

2 and of the number and percentage of children who 

3 become ineligible for medical assistance under this 

4 section whose medical assistance is continued under 

5 another eligibility category or who are enrolled under 

6 the State’s child health plan under title XXI. Such 

7 information shall be submitted at the same time and 

8 frequency in which other enrollment information 

9 under this title is submitted to the Secretary. 

10 ‘‘(2) ANNUAL REPORTS TO CONGRESS.—Using 

11 the information submitted under paragraph (1), the 

12 Secretary shall submit to Congress annual reports 

13 concerning enrollment and participation rates de14 scribed in such paragraph.’’. 

15 (e) EFFECTIVE DATE.—The amendments made by 

16 subsections (b) through (d) shall take effect on July 1, 

17 2009. 

18 SEC. 5004. STATE ELIGIBILITY OPTION FOR FAMILY PLAN19 NING SERVICES. 

20 (a) COVERAGE AS OPTIONAL CATEGORICALLY

21 NEEDY GROUP.— 

22 (1) IN GENERAL.—Section 1902(a)(10)(A)(ii) 

23 of the Social Security Act (42 U.S.C. 

24 1396a(a)(10)(A)(ii)), as amended by section 3003(a) 


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1 of the Health Insurance Assistance for the Unem2 ployed Act of 2009, is amended— 

3 (A) in subclause (XIX), by striking ‘‘or’’ at 

4 the end; 

5 (B) in subclause (XX), by adding ‘‘or’’ at 

6 the end; and 

7 (C) by adding at the end the following new 

8 subclause: 

9 ‘‘(XXI) who are described in subsection (ee) 

10 (relating to individuals who meet certain income 

11 standards);’’. 

12 (2) GROUP DESCRIBED.—Section 1902 of such 

13 Act (42 U.S.C. 1396a), as amended by section 

14 3003(a) of the Health Insurance Assistance for the 

15 Unemployed Act of 2009, is amended by adding at 

16 the end the following new subsection: 

17 ‘‘(ee)(1) Individuals described in this subsection are 

18 individuals— 

19 ‘‘(A) whose income does not exceed an in20 come eligibility level established by the State 

21 that does not exceed the highest income eligi22 bility level established under the State plan 

23 under this title (or under its State child health 

24 plan under title XXI) for pregnant women; and 

25 ‘‘(B) who are not pregnant. 


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1 ‘‘(2) At the option of a State, individuals de2 scribed in this subsection may include individuals 

3 who, had individuals applied on or before January 1, 

4 2007, would have been made eligible pursuant to the 

5 standards and processes imposed by that State for 

6 benefits described in clause (XV) of the matter fol7 lowing subparagraph (G) of section subsection 

8 (a)(10) pursuant to a waiver granted under section 

9 1115. 

10 ‘‘(3) At the option of a State, for purposes of 

11 subsection (a)(17)(B), in determining eligibility for 

12 services under this subsection, the State may con13 sider only the income of the applicant or recipient.’’. 

14 (3) LIMITATION ON BENEFITS.—Section 

15 1902(a)(10) of the Social Security Act (42 U.S.C. 

16 1396a(a)(10)) is amended in the matter following 

17 subparagraph (G)— 

18 (A) by striking ‘‘and (XIV)’’ and inserting 

19 ‘‘(XIV)’’; and 

20 (B) by inserting ‘‘, and (XV) the medical 

21 assistance made available to an individual de22 scribed in subsection (ee) shall be limited to 

23 family planning services and supplies described 

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1 vided pursuant to a family planning service in 

2 a family planning setting’’ after ‘‘cervical can3 cer’’. 

4 (4) CONFORMING AMENDMENTS.—Section 

5 1905(a) of the Social Security Act (42 U.S.C. 

6 1396d(a)), as amended by section 3003(c)(2) of the 

7 Health Insurance Assistance for the Unemployed 

8 Act of 2009, is amended in the matter preceding 

9 paragraph (1)— 

10 (A) in clause (xiii), by striking ‘‘or’’ at the 

11 end; 

12 (B) in clause (xiv), by adding ‘‘or’’ at the 

13 end; and 

14 (C) by inserting after clause (xiii) the fol15 lowing: 

16 ‘‘(xv) individuals described in section 

17 1902(ee),’’. 

18 (b) PRESUMPTIVE ELIGIBILITY.— 

19 (1) IN GENERAL.—Title XIX of the Social Se20 curity Act (42 U.S.C. 1396 et seq.) is amended by 

21 inserting after section 1920B the following: 

22 ‘‘PRESUMPTIVE ELIGIBILITY FOR FAMILY PLANNING

23 SERVICES

24 ‘‘SEC. 1920C. (a) STATE OPTION.—State plan ap25 proved under section 1902 may provide for making med26 ical assistance available to an individual described in secVerDate Nov 24 2008 01:08 Jan 27, 2009 Jkt 079200 PO 00000 Frm 00606 Fmt 6652 Sfmt 6201 E:\BILLS\H1.IH H1

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1 tion 1902(ee) (relating to individuals who meet certain in2 come eligibility standard) during a presumptive eligibility 

3 period. In the case of an individual described in section 

4 1902(ee), such medical assistance shall be limited to fam5 ily planning services and supplies described in 

6 1905(a)(4)(C) and, at the State’s option, medical diag7 nosis and treatment services that are provided in conjunc8 tion with a family planning service in a family planning 

9 setting. 

10 ‘‘(b) DEFINITIONS.—For purposes of this section: 

11 ‘‘(1) PRESUMPTIVE ELIGIBILITY PERIOD.—The 

12 term ‘presumptive eligibility period’ means, with re13 spect to an individual described in subsection (a), 

14 the period that— 

15 ‘‘(A) begins with the date on which a 

16 qualified entity determines, on the basis of pre17 liminary information, that the individual is de18 scribed in section 1902(ee); and 

19 ‘‘(B) ends with (and includes) the earlier 

20 of— 

21 ‘‘(i) the day on which a determination 

22 is made with respect to the eligibility of 

23 such individual for services under the State 

24 plan; or 


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1 ‘‘(ii) in the case of such an individual 

2 who does not file an application by the last 

3 day of the month following the month dur4 ing which the entity makes the determina5 tion referred to in subparagraph (A), such 

6 last day. 

7 ‘‘(2) QUALIFIED ENTITY.— 

8 ‘‘(A) IN GENERAL.—Subject to subpara9 graph (B), the term ‘qualified entity’ means 

10 any entity that— 

11 ‘‘(i) is eligible for payments under a 

12 State plan approved under this title; and 

13 ‘‘(ii) is determined by the State agen14 cy to be capable of making determinations 

15 of the type described in paragraph (1)(A). 

16 ‘‘(B) RULE OF CONSTRUCTION.—Nothing 

17 in this paragraph shall be construed as pre18 venting a State from limiting the classes of en19 tities that may become qualified entities in 

20 order to prevent fraud and abuse. 

21 ‘‘(c) ADMINISTRATION.— 

22 ‘‘(1) IN GENERAL.—The State agency shall pro23 vide qualified entities with— 

24 ‘‘(A) such forms as are necessary for an 

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1 scribed in subsection (a) for medical assistance 

2 under the State plan; and 

3 ‘‘(B) information on how to assist such in4 dividuals in completing and filing such forms. 

5 ‘‘(2) NOTIFICATION REQUIREMENTS.—A quali6 fied entity that determines under subsection 

7 (b)(1)(A) that an individual described in subsection 

8 (a) is presumptively eligible for medical assistance 

9 under a State plan shall— 

10 ‘‘(A) notify the State agency of the deter11 mination within 5 working days after the date 

12 on which determination is made; and 

13 ‘‘(B) inform such individual at the time 

14 the determination is made that an application 

15 for medical assistance is required to be made by 

16 not later than the last day of the month fol17 lowing the month during which the determina18 tion is made. 

19 ‘‘(3) APPLICATION FOR MEDICAL ASSIST20 ANCE.—In the case of an individual described in 

21 subsection (a) who is determined by a qualified enti22 ty to be presumptively eligible for medical assistance 

23 under a State plan, the individual shall apply for 

24 medical assistance by not later than the last day of 


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1 the month following the month during which the de2 termination is made. 

3 ‘‘(d) PAYMENT.—Notwithstanding any other provi4 sion of law, medical assistance that— 

5 ‘‘(1) is furnished to an individual described in 

6 subsection (a)— 

7 ‘‘(A) during a presumptive eligibility pe8 riod; 

9 ‘‘(B) by a entity that is eligible for pay10 ments under the State plan; and 

11 ‘‘(2) is included in the care and services covered 

12 by the State plan, 

13 shall be treated as medical assistance provided by such 

14 plan for purposes of clause (4) of the first sentence of 

15 section 1905(b).’’. 

16 (2) CONFORMING AMENDMENTS.— 

17 (A) Section 1902(a)(47) of the Social Se18 curity Act (42 U.S.C. 1396a(a)(47)) is amend19 ed by inserting before the semicolon at the end 

20 the following: ‘‘and provide for making medical 

21 assistance available to individuals described in 

22 subsection (a) of section 1920C during a pre23 sumptive eligibility period in accordance with 

24 such section’’. 


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1 (B) Section 1903(u)(1)(D)(v) of such Act 

2 (42 U.S.C. 1396b(u)(1)(D)(v)) is amended— 

3 (i) by striking ‘‘or for’’ and inserting 

4 ‘‘for’’; and 

5 (ii) by inserting before the period the 

6 following: ‘‘, or for medical assistance pro7 vided to an individual described in sub8 section (a) of section 1920C during a pre9 sumptive eligibility period under such sec10 tion’’. 

11 (c) CLARIFICATION OF COVERAGE OF FAMILY PLAN12 NING SERVICES AND SUPPLIES.—Section 1937(b) of the 

13 Social Security Act (42 U.S.C. 1396u–7(b)) is amended 

14 by adding at the end the following: 

15 ‘‘(5) COVERAGE OF FAMILY PLANNING SERV16 ICES AND SUPPLIES.—Notwithstanding the previous 

17 provisions of this section, a State may not provide 

18 for medical assistance through enrollment of an indi19 vidual with benchmark coverage or benchmark-equiv20 alent coverage under this section unless such cov21 erage includes for any individual described in section 

22 1905(a)(4)(C), medical assistance for family plan23 ning services and supplies in accordance with such 

24 section.’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section take effect on the date of the enactment of 

3 this Act and shall apply to items and services furnished 

4 on or after such date. 

5 SEC. 5005. PROTECTIONS FOR INDIANS UNDER MEDICAID 

6 AND CHIP. 

7 (a) PREMIUMS AND COST SHARING PROTECTION

8 UNDER MEDICAID.— 

9 (1) IN GENERAL.—Section 1916 of the Social 

10 Security Act (42 U.S.C. 1396o) is amended— 

11 (A) in subsection (a), in the matter pre12 ceding paragraph (1), by striking ‘‘and (i)’’ and 

13 inserting ‘‘, (i), and (j)’’; and 

14 (B) by adding at the end the following new 

15 subsection: 

16 ‘‘(j) NO PREMIUMS OR COST SHARING FOR INDIANS

17 FURNISHED ITEMS OR SERVICES DIRECTLY BY INDIAN

18 HEALTH PROGRAMS OR THROUGH REFERRAL UNDER

19 CONTRACT HEALTH SERVICES.— 

20 ‘‘(1) NO COST SHARING FOR ITEMS OR SERV21 ICES FURNISHED TO INDIANS THROUGH INDIAN

22 HEALTH PROGRAMS.— 

23 ‘‘(A) IN GENERAL.—No enrollment fee, 

24 premium, or similar charge, and no deduction, 

25 copayment, cost sharing, or similar charge shall 


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1 be imposed against an Indian who is furnished 

2 an item or service directly by the Indian Health 

3 Service, an Indian Tribe, Tribal Organization, 

4 or Urban Indian Organization or through refer5 ral under contract health services for which 

6 payment may be made under this title. 

7 ‘‘(B) NO REDUCTION IN AMOUNT OF PAY8 MENT TO INDIAN HEALTH PROVIDERS.—Pay9 ment due under this title to the Indian Health 

10 Service, an Indian Tribe, Tribal Organization, 

11 or Urban Indian Organization, or a health care 

12 provider through referral under contract health 

13 services for the furnishing of an item or service 

14 to an Indian who is eligible for assistance under 

15 such title, may not be reduced by the amount 

16 of any enrollment fee, premium, or similar 

17 charge, or any deduction, copayment, cost shar18 ing, or similar charge that would be due from 

19 the Indian but for the operation of subpara20 graph (A). 

21 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

22 this subsection shall be construed as restricting the 

23 application of any other limitations on the imposi24 tion of premiums or cost sharing that may apply to 


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1 an individual receiving medical assistance under this 

2 title who is an Indian.’’. 

3 (2) CONFORMING AMENDMENT.—Section 

4 1916A(b)(3) of such Act (42 U.S.C. 1396o–1(b)(3)) 

5 is amended— 

6 (A) in subparagraph (A), by adding at the 

7 end the following new clause: 

8 ‘‘(vi) An Indian who is furnished an 

9 item or service directly by the Indian 

10 Health Service, an Indian Tribe, Tribal 

11 Organization or Urban Indian Organiza12 tion or through referral under contract 

13 health services.’’; and 

14 (B) in subparagraph (B), by adding at the 

15 end the following new clause: 

16 ‘‘(ix) Items and services furnished to 

17 an Indian directly by the Indian Health 

18 Service, an Indian Tribe, Tribal Organiza19 tion or Urban Indian Organization or 

20 through referral under contract health 

21 services.’’. 

22 (3) EFFECTIVE DATE.—The amendments made 

23 by this subsection shall take effect on October 1, 

24 2009. 


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1 (b) TREATMENT OF CERTAIN PROPERTY FROM RE2 SOURCES FOR MEDICAID AND CHIP ELIGIBILITY.— 

3 (1) MEDICAID.—Section 1902 of the Social Se4 curity Act (42 U.S.C. 1396a), as amended by sec5 tion 3003(a) of the Health Insurance Assistance for 

6 the Unemployed Act of 2009 and section 5004, is 

7 amended by adding at the end the following new 

8 subsection: 

9 ‘‘(ff) Notwithstanding any other requirement of this 

10 title or any other provision of Federal or State law, a State 

11 shall disregard the following property from resources for 

12 purposes of determining the eligibility of an individual who 

13 is an Indian for medical assistance under this title: 

14 ‘‘(1) Property, including real property and im15 provements, that is held in trust, subject to Federal 

16 restrictions, or otherwise under the supervision of 

17 the Secretary of the Interior, located on a reserva18 tion, including any federally recognized Indian 

19 Tribe’s reservation, pueblo, or colony, including 

20 former reservations in Oklahoma, Alaska Native re21 gions established by the Alaska Native Claims Set22 tlement Act, and Indian allotments on or near a res23 ervation as designated and approved by the Bureau 

24 of Indian Affairs of the Department of the Interior. 


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1 ‘‘(2) For any federally recognized Tribe not de2 scribed in paragraph (1), property located within the 

3 most recent boundaries of a prior Federal reserva4 tion. 

5 ‘‘(3) Ownership interests in rents, leases, royal6 ties, or usage rights related to natural resources (in7 cluding extraction of natural resources or harvesting 

8 of timber, other plants and plant products, animals, 

9 fish, and shellfish) resulting from the exercise of fed10 erally protected rights. 

11 ‘‘(4) Ownership interests in or usage rights to 

12 items not covered by paragraphs (1) through (3) 

13 that have unique religious, spiritual, traditional, or 

14 cultural significance or rights that support subsist15 ence or a traditional lifestyle according to applicable 

16 tribal law or custom.’’. 

17 (2) APPLICATION TO CHIP.—Section 2107(e)(1) 

18 of such Act (42 U.S.C. 1397gg(e)(1)) is amended by 

19 adding at the end the following new subparagraph: 

20 ‘‘(E) Section 1902(ff) (relating to dis21 regard of certain property for purposes of mak22 ing eligibility determinations).’’. 

23 (c) CONTINUATION OF CURRENT LAW PROTECTIONS

24 OF CERTAIN INDIAN PROPERTY FROM MEDICAID ESTATE


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1 RECOVERY.—Section 1917(b)(3) of the Social Security 

2 Act (42 U.S.C. 1396p(b)(3)) is amended— 

3 (1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 

4 (2) by adding at the end the following new sub5 paragraph: 

6 ‘‘(B) The standards specified by the Sec7 retary under subparagraph (A) shall require 

8 that the procedures established by the State 

9 agency under subparagraph (A) exempt income, 

10 resources, and property that are exempt from 

11 the application of this subsection as of April 1, 

12 2003, under manual instructions issued to carry 

13 out this subsection (as in effect on such date) 

14 because of the Federal responsibility for Indian 

15 Tribes and Alaska Native Villages. Nothing in 

16 this subparagraph shall be construed as pre17 venting the Secretary from providing additional 

18 estate recovery exemptions under this title for 

19 Indians.’’. 

20 SEC. 5006. CONSULTATION ON MEDICAID AND CHIP. 

21 (a) IN GENERAL.—Section 1139 of the Social Secu22 rity Act (42 U.S.C. 1320b–9) is amended to read as fol23 lows: 


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1 ‘‘CONSULTATION WITH TRIBAL TECHNICAL ADVISORY

2 GROUP (TTAG)

3 ‘‘SEC. 1139. The Secretary shall maintain within the 

4 Centers for Medicaid & Medicare Services (CMS) a Tribal 

5 Technical Advisory Group, which was first established in 

6 accordance with requirements of the charter dated Sep7 tember 30, 2003, and the Secretary shall include in such 

8 Group a representative of the Urban Indian Organizations 

9 and the Service. The representative of the Urban Indian 

10 Organization shall be deemed to be an elected officer of 

11 a tribal government for purposes of applying section 

12 204(b) of the Unfunded Mandates Reform Act of 1995 

13 (2 U.S.C. 1534(b)).’’. 

14 (b) SOLICITATION OF ADVICE UNDER MEDICAID AND

15 CHIP.— 

16 (1) MEDICAID STATE PLAN AMENDMENT.—Sec17 tion 1902(a) of the Social Security Act (42 U.S.C. 

18 1396a(a)) is amended— 

19 (A) in paragraph (70), by striking ‘‘and’’ 

20 at the end; 

21 (B) in paragraph (71), by striking the pe22 riod at the end and inserting ‘‘; and’’; and 

23 (C) by inserting after paragraph (71), the 

24 following new paragraph: 


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1 ‘‘(72) in the case of any State in which 1 or 

2 more Indian Health Programs or Urban Indian Or3 ganizations furnishes health care services, provide 

4 for a process under which the State seeks advice on 

5 a regular, ongoing basis from designees of such In6 dian Health Programs and Urban Indian Organiza7 tions on matters relating to the application of this 

8 title that are likely to have a direct effect on such 

9 Indian Health Programs and Urban Indian Organi10 zations and that— 

11 ‘‘(A) shall include solicitation of advice 

12 prior to submission of any plan amendments, 

13 waiver requests, and proposals for demonstra14 tion projects likely to have a direct effect on In15 dians, Indian Health Programs, or Urban In16 dian Organizations; and 

17 ‘‘(B) may include appointment of an advi18 sory committee and of a designee of such In19 dian Health Programs and Urban Indian Orga20 nizations to the medical care advisory com21 mittee advising the State on its State plan 

22 under this title.’’. 

23 (2) APPLICATION TO CHIP.—Section 2107(e)(1) 

24 of such Act (42 U.S.C. 1397gg(e)(1)), as amended 


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1 by section 5005(b), is amended by adding at the end 

2 the following new subparagraph: 

3 ‘‘(F) Section 1902(a)(72) (relating to re4 quiring certain States to seek advice from des5 ignees of Indian Health Programs and Urban 

6 Indian Organizations).’’. 

7 (c) RULE OF CONSTRUCTION.—Nothing in the 

8 amendments made by this section shall be construed as 

9 superseding existing advisory committees, working groups, 

10 guidance, or other advisory procedures established by the 

11 Secretary of Health and Human Services or by any State 

12 with respect to the provision of health care to Indians. 

13 SEC. 5007. TEMPORARY INCREASE IN DSH ALLOTMENTS 

14 DURING RECESSION. 

15 Section 1923(f)(3) of the Social Security Act (42 

16 U.S.C. 1396r–4(f)(3)) is amended— 

17 (1) in subparagraph (A), by striking ‘‘para18 graph (6)’’ and inserting ‘‘paragraph (6) and sub19 paragraph (E)’’; and 

20 (2) by adding at the end the following new sub21 paragraph: 

22 ‘‘(E) TEMPORARY INCREASE IN ALLOT23 MENTS DURING RECESSION.— 

24 ‘‘(i) IN GENERAL.—Subject to clause 

25 (ii), the DSH allotment for any State— 


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1 ‘‘(I) for fiscal year 2009 is equal 

2 to 102.5 percent of the DSH allot3 ment that would be determined under 

4 this paragraph for the State for fiscal 

5 year 2009 without application of this 

6 subparagraph, notwithstanding sub7 paragraph (B); 

8 ‘‘(II) for fiscal year 2010 is equal 

9 to 102.5 percent of the the DSH al10 lotment for the State for fiscal year 

11 2009, as determined under subclause 

12 (I); and 

13 ‘‘(III) for each succeeding fiscal 

14 year is equal to the DSH allotment 

15 for the State under this paragraph de16 termined without applying subclauses 

17 (I) and (II). 

18 ‘‘(ii) APPLICATION.—Clause (i) shall 

19 not apply to a State for a year in the case 

20 that the DSH allotment for such State for 

21 such year under this paragraph determined 

22 without applying clause (i) would grow 

23 higher than the DSH allotment specified 

24 under clause (i) for the State for such 

25 year.’’. 


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1 TITLE VI—BROADBAND 

2 COMMUNICATIONS 

3 SEC. 6001. INVENTORY OF BROADBAND SERVICE CAPA4 BILITY AND AVAILABILITY. 

5 (a) ESTABLISHMENT.—To provide a comprehensive 

6 nationwide inventory of existing broadband service capa7 bility and availability, the National Telecommunications 

8 and Information Administration (‘‘NTIA’’) shall develop 

9 and maintain a broadband inventory map of the United 

10 States that identifies and depicts the geographic extent 

11 to which broadband service capability is deployed and 

12 available from a commercial provider or public provider 

13 throughout each State. 

14 (b) PUBLIC AVAILABILITY AND INTERACTIVITY.— 

15 Not later than 2 years after the date of enactment of this 

16 Act, the NTIA shall make the broadband inventory map 

17 developed and maintained pursuant to this section acces18 sible by the public on a World Wide Web site of the NTIA 

19 in a form that is interactive and searchable. 

20 SEC. 6002. WIRELESS AND BROADBAND DEPLOYMENT 

21 GRANT PROGRAMS. 

22 (a) GRANTS AUTHORIZED.— 

23 (1) IN GENERAL.—The National Telecommuni24 cations and Information Administration (‘‘NTIA’’) 

25 is authorized to carry out a program to award 


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1 grants to eligible entities for the non-recurring costs 

2 associated with the deployment of broadband infra3 structure in rural, suburban, and urban areas, in ac4 cordance with the requirements of this section. 

5 (2) PROGRAM WEBSITE.—The NTIA shall de6 velop and maintain a website to make publicly avail7 able information about the program described in 

8 paragraph (1), including— 

9 (A) each prioritization report submitted by 

10 a State under subsection (b); 

11 (B) a list of eligible entities that have ap12 plied for a grant under this section, and the 

13 area or areas the entity proposes to serve; and 

14 (C) the status of each such application, 

15 whether approved, denied, or pending. 

16 (b) STATE PRIORITIES.— 

17 (1) PRIORITIES REPORT SUBMISSION.—Not 

18 later than 75 days after the date of enactment of 

19 this section, each State intending to participate in 

20 the program under this section shall submit to the 

21 NTIA a report indicating the geographic areas of 

22 the State which— 

23 (A) for the purposes of determining the 

24 need for Wireless Deployment Grants under 


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1 subsection (c), the State considers to have the 

2 greatest priority for— 

3 (i) wireless voice service in unserved 

4 areas; and 

5 (ii) advanced wireless broadband serv6 ice in underserved areas; and 

7 (B) for the purposes of determining the 

8 need for Broadband Deployment Grants under 

9 subsection (d), the State considers to have the 

10 greatest priority for— 

11 (i) basic broadband service in 

12 unserved areas; and 

13 (ii) advanced broadband service in un14 derserved areas. 

15 (2) LIMITATION.—The unserved and under16 served areas identified by a State in the report re17 quired by this subsection shall not represent, in the 

18 aggregate, more than 20 percent of the population 

19 of such State. 

20 (c) WIRELESS DEPLOYMENT GRANTS.— 

21 (1) AUTHORIZED ACTIVITY.—The NTIA shall 

22 award Wireless Deployment Grants in accordance 

23 with this subsection from amounts authorized for 

24 Wireless Deployment Grants by this subtitle to eligi25 ble entities to deploy necessary infrastructure for the 


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1 provision of wireless voice service or advanced wire2 less broadband service to end users in designated 

3 areas. 

4 (2) GRANT DISTRIBUTION.—The NTIA shall 

5 seek to distribute grants, to the extent possible, so 

6 that 25 percent of the grants awarded under this 

7 subsection shall be awarded to eligible entities for 

8 providing wireless voice service to unserved areas 

9 and 75 percent of grants awarded under this sub10 section shall be awarded to eligible entities for pro11 viding advanced wireless broadband service to under12 served areas. 

13 (d) BROADBAND DEPLOYMENT GRANTS.— 

14 (1) AUTHORIZED ACTIVITY.—The NTIA shall 

15 award Broadband Deployment Grants in accordance 

16 with this subsection from amounts authorized for 

17 Broadband Deployment Grants by this subtitle to el18 igible entities to deploy necessary infrastructure for 

19 the provision of basic broadband service or advanced 

20 broadband service to end users in designated areas. 

21 (2) GRANT DISTRIBUTION.—The NTIA shall 

22 seek to distribute grants, to the extent possible, so 

23 that 25 percent of the grants awarded under this 

24 subsection shall be awarded to eligible entities for 

25 providing basic broadband service to unserved areas 


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1 and 75 percent of grants awarded under this sub2 section shall be awarded to eligible entities for pro3 viding advanced broadband service to underserved 

4 areas. 

5 (e) GRANT REQUIREMENTS.—The NTIA shall— 

6 (1) adopt rules to protect against unjust enrich7 ment; and 

8 (2) ensure that grant recipients— 

9 (A) meet buildout requirements; 

10 (B) maximize use of the supported infra11 structure by the public; 

12 (C) operate basic and advanced broadband 

13 service networks on an open access basis; 

14 (D) operate advanced wireless broadband 

15 service on a wireless open access basis; and 

16 (E) adhere to the principles contained in 

17 the Federal Communications Commission’s 

18 broadband policy statement (FCC 05–151, 

19 adopted August 5, 2005). 

20 (f) APPLICATIONS.— 

21 (1) SUBMISSION.—To be considered for a grant 

22 awarded under subsection (c) or (d), an eligible enti23 ty shall submit to the NTIA an application at such 

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1 tion and assurances as the NTIA may require. Such 

2 an application shall include— 

3 (A) a cost-study estimate for serving the 

4 particular geographic area to be served by the 

5 entity; 

6 (B) a proposed build-out schedule to resi7 dential households and small businesses in the 

8 area; 

9 (C) for applicants for Wireless Deployment 

10 Grants under subsection (c), a build-out sched11 ule for geographic coverage of such areas; and 

12 (D) any other requirements the NTIA 

13 deems necessary. 

14 (2) SELECTION.— 

15 (A) NOTIFICATION.—The NTIA shall no16 tify each eligible entity that has submitted a 

17 complete application whether the entity has 

18 been approved or denied for a grant under this 

19 section in a timely fashion. 

20 (B) GRANT DISTRIBUTION CONSIDER21 ATIONS.—In awarding grants under this sec22 tion, the NTIA shall, to the extent practical— 

23 (i) award not less than one grant in 

24 each State; 


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1 (ii) give substantial weight to whether 

2 an application is from an eligible entity to 

3 deploy infrastructure in an area that is an 

4 area— 

5 (I) identified by a State in a re6 port submitted under subsection (b); 

7 or 

8 (II) in which the NTIA deter9 mines there will be a significant 

10 amount of public safety or emergency 

11 response use of the infrastructure; 

12 (iii) consider whether an application 

13 from an eligible entity to deploy infrastruc14 ture in an area— 

15 (I) will, if approved, increase the 

16 affordability of, or subscribership to, 

17 service to the greatest population of 

18 underserved users in the area; 

19 (II) will, if approved, enhance 

20 service for health care delivery, edu21 cation, or children to the greatest pop22 ulation of underserved users in the 

23 area; 


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1 (III) contains concrete plans for 

2 enhancing computer ownership or 

3 computer literacy in the area; 

4 (IV) is from a recipient of more 

5 than 20 percent matching grants from 

6 State, local, or private entities for 

7 service in the area and the extent of 

8 such commitment; 

9 (V) will, if approved, result in 

10 unjust enrichment because the eligible 

11 entity has applied for, or intends to 

12 apply for, support for the non-recur13 ring costs through another Federal 

14 program for service in the area; and 

15 (VI) will, if approved, signifi16 cantly improve interoperable 

17 broadband communications systems 

18 available for use by public safety and 

19 emergency response; and 

20 (iv) consider whether the eligible enti21 ty is a socially and economically disadvan22 taged small business concern, as defined 

23 under section 8(a) of the Small Business 

24 Act (15 U.S.C. 637). 


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1 (g) COORDINATION AND CONSULTATION.—The 

2 NTIA shall coordinate with the Federal Communications 

3 Commission and shall consult with other appropriate Fed4 eral agencies in implementing this section. 

5 (h) REPORT REQUIRED.—The NTIA shall submit an 

6 annual report to the Committee on Energy and Commerce 

7 of the House of Representatives and the Committee on 

8 Commerce, Science, and Transportation of the Senate for 

9 5 years assessing the impact of the grants funded under 

10 this section on the basis of the objectives and criteria de11 scribed in subsection (f)(2)(B)(iii). 

12 (i) RULEMAKING AUTHORITY.—The NTIA shall have 

13 the authority to prescribe such rules as necessary to carry 

14 out the purposes of this section. 

15 (j) DEFINITIONS.—For the purpose of this section— 

16 (1) the term ‘‘advanced broadband service’’ 

17 means a service delivering data to the end user 

18 transmitted at a speed of at least 45 megabits per 

19 second downstream and at least 15 megabits per 

20 second upstream; 

21 (2) the term ‘‘advanced wireless broadband 

22 service’’ means a wireless service delivering to the 

23 end user data transmitted at a speed of at least 3 

24 megabits per second downstream and at least 1 


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1 megabit per second upstream over an end-to-end 

2 internet protocol wireless network; 

3 (3) the term ‘‘basic broadband service’’ means 

4 a service delivering data to the end user transmitted 

5 at a speed of at least 5 megabits per second down6 stream and at least 1 megabit per second upstream; 

7 (4) the term ‘‘eligible entity’’ means— 

8 (A) a provider of wireless voice service, ad9 vanced wireless broadband service, basic 

10 broadband service, or advanced broadband serv11 ice, including a satellite carrier that provides 

12 any such service; 

13 (B) a State or unit of local government, or 

14 agency or instrumentality thereof, that is or in15 tends to be a provider of any such service; and 

16 (C) any other entity, including construc17 tion companies, tower companies, backhaul 

18 companies, or other service providers, that the 

19 NTIA authorizes by rule to participate in the 

20 programs under this section, if such other enti21 ty is required to provide access to the supported 

22 infrastructure on a neutral, reasonable basis to 

23 maximize use; 

24 (5) the term ‘‘interoperable broadband commu25 nications systems’’ means communications systems 


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1 which enable public safety agencies to share infor2 mation among local, State, Federal, and tribal public 

3 safety agencies in the same area using voice or data 

4 signals via advanced wireless broadband service; 

5 (6) the term ‘‘open access’’ shall be defined by 

6 the Federal Communications Commission not later 

7 than 45 days after the date of enactment of this sec8 tion; 

9 (7) the term ‘‘State’’ includes the District of 

10 Columbia and the territories and possessions; 

11 (8) the term ‘‘underserved area’’ shall be de12 fined by the Federal Communications Commission 

13 not later than 45 days after the date of enactment 

14 of this section; 

15 (9) the term ‘‘unserved area’’ shall be defined 

16 by the Federal Communications Commission not 

17 later than 45 days after the date of enactment of 

18 this section; 

19 (10) the term ‘‘wireless open access’’ shall be 

20 defined by the Federal Communications Commission 

21 not later than 45 days after the date of enactment 

22 of this section; and 

23 (11) the term ‘‘wireless voice service’’ means 

24 the provision of two-way, real-time, voice commu25 nications using a mobile service. 


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1 (k) REVIEW OF DEFINITIONS.—Not later than 3 

2 months after the date the NTIA makes a broadband in3 ventory map of the United States accessible to the public 

4 pursuant to section 6001(b), the Federal Communications 

5 Commission shall review the definitions of ‘‘underserved 

6 area’’ and ‘‘unserved area’’, as defined by the Commission 

7 within 45 days after the date of enactment of this Act 

8 (as required by paragraphs (8) and (9) of subsection (j)), 

9 and shall revise such definitions based on the data used 

10 by the NTIA to develop and maintain such map. 

11 SEC. 6003. NATIONAL BROADBAND PLAN. 

12 (a) REPORT REQUIRED.—Not later than 1 year after 

13 the date of enactment of this section, the Federal Commu14 nications Commission shall submit to the Committee on 

15 Energy and Commerce of the House of Representatives 

16 and the Committee on Commerce, Science, and Transpor17 tation of the Senate, a report containing a national 

18 broadband plan. 

19 (b) CONTENTS OF PLAN.—The national broadband 

20 plan required by this section shall seek to ensure that all 

21 people of the United States have access to broadband ca22 pability and shall establish benchmarks for meeting that 

23 goal. The plan shall also include— 


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1 (1) an analysis of the most effective and effi2 cient mechanisms for ensuring broadband access by 

3 all people of the United States; 

4 (2) a detailed strategy for achieving afford5 ability of such service and maximum utilization of 

6 broadband infrastructure and service by the public; 

7 and 

8 (3) a plan for use of broadband infrastructure 

9 and services in advancing consumer welfare, civic 

10 participation, public safety and homeland security, 

11 community development, health care delivery, energy 

12 independence and efficiency, education, worker train13 ing, private sector investment, entrepreneurial activ14 ity, job creation and economic growth, and other na15 tional purposes. 

16 TITLE VII—ENERGY 

17 SEC. 7001. TECHNICAL CORRECTIONS TO THE ENERGY 

18 INDEPENDENCE AND SECURITY ACT OF 2007. 

19 (a) Section 543(a) of the Energy Independence and 

20 Security Act of 2007 (42 U.S.C. 17153(a)) is amended— 

21 (1) by redesignating paragraphs (2) through 

22 (4) as paragraphs (3) through (5), respectively; and 

23 (2) by striking paragraph (1) and inserting the 

24 following: 


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1 ‘‘(1) 34 percent to eligible units of local govern2 ment–alternative 1, in accordance with subsection 

3 (b); 

4 ‘‘(2) 34 percent to eligible units of local govern5 ment–alternative 2, in accordance with subsection 

6 (b);’’. 

7 (b) Section 543(b) of the Energy Independence and 

8 Security Act of 2007 (42 U.S.C. 17153(b)) is amended 

9 by striking ‘‘subsection (a)(1)’’ and inserting ‘‘subsection 

10 (a)(1) or (2)’’. 

11 (c) Section 548(a)(1) of the Energy Independence 

12 and Security Act of 2007 (42 U.S.C. 17158(a)(1)) is 

13 amending by striking ‘‘; provided’’ and all that follows 

14 through ‘‘541(3)(B)’’. 

15 SEC. 7002. AMENDMENTS TO TITLE XIII OF THE ENERGY 

16 INDEPENDENCE AND SECURITY ACT OF 2007. 

17 Title XIII of the Energy Independence and Security 

18 Act of 2007 (42 U.S.C. 17381 and following) is amended 

19 as follows: 

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

21 1304(b)(3) to read as follows: 

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

23 initiative, the Secretary shall provide financial 

24 support to smart grid demonstration projects in 

25 urban, suburban, and rural areas, including 


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1 areas where electric system assets are controlled 

2 by tax-exempt entities and areas where electric 

3 system assets are controlled by investor-owned 

4 utilities.’’. 

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

6 1304(b)(3) to read as follows: 

7 ‘‘(C) FEDERAL SHARE OF COST OF TECH8 NOLOGY INVESTMENTS.—The Secretary shall 

9 provide to an electric utility described in sub10 paragraph (B) or to other parties financial as11 sistance for use in paying an amount equal to 

12 not more than 50 percent of the cost of quali13 fying advanced grid technology investments 

14 made by the electric utility or other party to 

15 carry out a demonstration project.’’. 

16 (3) By inserting after section 1304(b)(3)(D) 

17 the following new subparagraphs: 

18 ‘‘(E) AVAILABILITY OF DATA.—The Sec19 retary shall establish and maintain a smart grid 

20 information clearinghouse in a timely manner 

21 which will make data from smart grid dem22 onstration projects and other sources available 

23 to the public. As a condition of receiving finan24 cial assistance under this subsection, a utility or 

25 other participant in a smart grid demonstration 


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1 project shall provide such information as the 

2 Secretary may require to become available 

3 through the smart grid information clearing4 house in the form and within the timeframes as 

5 directed by the Secretary. The Secretary shall 

6 assure that business proprietary information 

7 and individual customer information is not in8 cluded in the information made available 

9 through the clearinghouse. 

10 ‘‘(F) OPEN INTERNET-BASED PROTOCOLS

11 AND STANDARDS.—The Secretary shall require 

12 as a condition of receiving funding under this 

13 subsection that demonstration projects utilize 

14 open Internet-based protocols and standards if 

15 available.’’. 

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

17 1304(c) to read as follows: 

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

19 may be necessary.’’. 

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

21 by striking ‘‘reimbursement of one-fifth (20 per22 cent)’’ and inserting ‘‘grants of up to one-half (50 

23 percent)’’. 

24 (6) By striking the last sentence of subsection 

25 (b)(9) of section 1306. 


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

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

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

4 to read as follows: 

5 ‘‘(e) PROCEDURES AND RULES.—The Secretary 

6 shall— 

7 ‘‘(1) establish within 60 days after the enact8 ment of the American Recovery and Reinvestment 

9 Act of 2009 procedures by which applicants can ob10 tain grants of not more than one-half of their docu11 mented costs; 

12 ‘‘(2) require as a condition of receiving a grant 

13 under this section that grant recipients utilize open 

14 Internet-based protocols and standards if available; 

15 ‘‘(3) establish procedures to ensure that there is 

16 no duplication or multiple payment or recovery for 

17 the same investment or costs, that the grant goes to 

18 the party making the actual expenditures for quali19 fying smart grid investments, and that the grants 

20 made have significant effect in encouraging and fa21 cilitating the development of a smart grid; 

22 ‘‘(4) maintain public records of grants made, 

23 recipients, and qualifying smart grid investments 

24 which have received grants; 


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1 ‘‘(5) establish procedures to provide advance 

2 payment of moneys up to the full amount of the 

3 grant award; and 

4 ‘‘(6) have and exercise the discretion to deny 

5 grants for investments that do not qualify in the 

6 reasonable judgment of the Secretary.’’. 

7 SEC. 7003. RENEWABLE ENERGY AND ELECTRIC POWER 

8 TRANSMISSION LOAN GUARANTEE PROGRAM. 

9 (a) AMENDMENT.—Title XVII of the Energy Policy 

10 Act of 2005 (42 U.S.C. 16511 et seq.) is amended by add11 ing the following at the end: 

12 ‘‘SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOY13 MENT OF RENEWABLE ENERGY AND ELEC14 TRIC POWER TRANSMISSION PROJECTS. 

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

16 the Secretary may make guarantees under this section 

17 only for commercial technology projects under subsection 

18 (b) that will commence construction not later than Sep19 tember 30, 2011. 

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

21 categories shall be eligible for support under this section: 

22 ‘‘(1) Renewable energy systems, including incre23 mental hydropower, that generate electricity. 

24 ‘‘(2) Electric power transmission systems, in25 cluding upgrading and reconductoring projects. 


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1 ‘‘(3) Leading edge biofuel projects that will use 

2 technologies performing at the pilot or demonstra3 tion scale that the Secretary determines are likely to 

4 become commercial technologies and will produce 

5 transportation fuels that substantially reduce life6 cycle greenhouse gas emissions compared to other 

7 transportation fuels. 

8 ‘‘(c) FACTORS RELATING TO ELECTRIC POWER

9 TRANSMISSION SYSTEMS.—In determining to make guar10 antees to projects described in subsection (b)(2), the Sec11 retary shall consider the following factors: 

12 ‘‘(1) The viability of the project without guar13 antees. 

14 ‘‘(2) The availability of other Federal and State 

15 incentives. 

16 ‘‘(3) The importance of the project in meeting 

17 reliability needs. 

18 ‘‘(4) The effect of the project in meeting a 

19 State or region’s environment (including climate 

20 change) and energy goals. 

21 ‘‘(d) WAGE RATE REQUIREMENTS.—The Secretary 

22 shall require that each recipient of support under this sec23 tion provide reasonable assurance that all laborers and 

24 mechanics employed in the performance of the project for 

25 which the assistance is provided, including those employed 


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1 by contractors or subcontractors, will be paid wages at 

2 rates not less than those prevailing on similar work in the 

3 locality as determined by the Secretary of Labor in accord4 ance with subchapter IV of chapter 31 of part A of subtitle 

5 II of title 40, United States Code (commonly referred to 

6 as the ‘Davis-Bacon Act’). 

7 ‘‘(e) LIMITATION.—Funding under this section for 

8 projects described in subsection (b)(3) shall not exceed 

9 $500,000,000. 

10 ‘‘(f) SUNSET.—The authority to enter into guaran11 tees under this section shall expire on September 30, 

12 2011.’’. 

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

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

15 by inserting after the item relating to section 1704 the 

16 following new item: 

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

electric power transmission projects.’’. 

17 SEC. 7004. WEATHERIZATION ASSISTANCE PROGRAM 

18 AMENDMENTS. 

19 (a) INCOME LEVEL.—Section 412(7) of the Energy 

20 Conservation and Production Act (42 U.S.C. 6862(7)) is 

21 amended by striking ‘‘150 percent’’ both places it appears 

22 and inserting ‘‘200 percent’’. 

23 (b) ASSISTANCE LEVEL PER DWELLING UNIT.— 

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

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

3 (c) EFFECTIVE USE OF FUNDS.—In providing funds 

4 made available by this Act for the Weatherization Assist5 ance Program, the Secretary may encourage States to give 

6 priority to using such funds for the most cost-effective ef7 ficiency activities, which may include insulation of attics, 

8 if, in the Secretary’s view, such use of funds would in9 crease the effectiveness of the program. 

10 SEC. 7005. RENEWABLE ELECTRICITY TRANSMISSION 

11 STUDY. 

12 In completing the 2009 National Electric Trans13 mission Congestion Study, the Secretary of Energy shall 

14 include— 

15 (1) an analysis of the significant potential 

16 sources of renewable energy that are constrained in 

17 accessing appropriate market areas by lack of ade18 quate transmission capacity; 

19 (2) an analysis of the reasons for failure to de20 velop the adequate transmission capacity; 

21 (3) recommendations for achieving adequate 

22 transmission capacity; 

23 (4) an analysis of the extent to which legal 

24 challenges filed at the State and Federal level are 


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1 delaying the construction of transmission necessary 

2 to access renewable energy; and 

3 (5) an explanation of assumptions and projec4 tions made in the Study, including— 

5 (A) assumptions and projections relating 

6 to energy efficiency improvements in each load 

7 center; 

8 (B) assumptions and projections regarding 

9 the location and type of projected new genera10 tion capacity; and 

11 (C) assumptions and projections regarding 

12 projected deployment of distributed generation 

13 infrastructure. 

14 SEC. 7006. ADDITIONAL STATE ENERGY GRANTS. 

15 (a) IN GENERAL.—Amounts appropriated in para16 graph (6) under the heading ‘‘Department of Energy— 

17 Energy Programs—Energy Efficiency and Renewable En18 ergy’’ in title V of division A of this Act shall be available 

19 to the Secretary of Energy for making additional grants 

20 under part D of title III of the Energy Policy and Con21 servation Act (42 U.S.C. 6321 et seq.). The Secretary 

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

23 allocation established for a State under regulations issued 

24 pursuant to the authorization provided in section 365(f) 

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1 fies the Secretary of Energy that the governor will seek, 

2 to the extent of his or her authority, to ensure that each 

3 of the following will occur: 

4 (1) The applicable State regulatory authority 

5 will implement the following regulatory policies for 

6 each electric and gas utility with respect to which 

7 the State regulatory authority has ratemaking au8 thority: 

9 (A) Policies that ensure that a utility’s re10 covery of prudent fixed costs of service is timely 

11 and independent of its retail sales, without in 

12 the process shifting prudent costs from variable 

13 to fixed charges. This cost shifting constraint 

14 shall not apply to rate designs adopted prior to 

15 the date of enactment of this Act. 

16 (B) Cost recovery for prudent investments 

17 by utilities in energy efficiency. 

18 (C) An earnings opportunity for utilities 

19 associated with cost-effective energy efficiency 

20 savings. 

21 (2) The State, or the applicable units of local 

22 government that have authority to adopt building 

23 codes, will implement the following: 

24 (A) A building energy code (or codes) for 

25 residential buildings that meets or exceeds the 


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1 most recently published International Energy 

2 Conservation Code, or achieves equivalent or 

3 greater energy savings. 

4 (B) A building energy code (or codes) for 

5 commercial buildings throughout the State that 

6 meets or exceeds the ANSI/ASHRAE/IESNA 

7 Standard 90.1–2007, or achieves equivalent or 

8 greater energy savings. 

9 (C) A plan for the jurisdiction achieving 

10 compliance with the building energy code or 

11 codes described in subparagraphs (A) and (B) 

12 within 8 years of the date of enactment of this 

13 Act in at least 90 percent of new and renovated 

14 residential and commercial building space. Such 

15 plan shall include active training and enforce16 ment programs and measurement of the rate of 

17 compliance each year. 

18 (3) The State will to the extent practicable 

19 prioritize the grants toward funding energy effi20 ciency and renewable energy programs, including— 

21 (A) the expansion of existing energy effi22 ciency programs approved by the State or the 

23 appropriate regulatory authority, including en24 ergy efficiency retrofits of buildings and indus25 trial facilities, that are funded— 


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1 (i) by the State; or 

2 (ii) through rates under the oversight 

3 of the applicable regulatory authority, to 

4 the extent applicable; 

5 (B) the expansion of existing programs, 

6 approved by the State or the appropriate regu7 latory authority, to support renewable energy 

8 projects and deployment activities, including 

9 programs operated by entities which have the 

10 authority and capability to manage and dis11 tribute grants, loans, performance incentives, 

12 and other forms of financial assistance; and 

13 (C) cooperation and joint activities between 

14 States to advance more efficient and effective 

15 use of this funding to support the priorities de16 scribed in this paragraph. 

17 (b) STATE MATCH.—The State cost share require18 ment under the item relating to ‘‘DEPARTMENT OF 

19 ENERGY; energy conservation’’ in title II of the Depart20 ment of the Interior and Related Agencies Appropriations 

21 Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not 

22 apply to assistance provided under this section. 

23 (c) EQUIPMENT AND MATERIALS FOR ENERGY EFFI24 CIENCY MEASURES.—No limitation on the percentage of 

25 funding that may be used for the purchase and installation 


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1 of equipment and materials for energy efficiency measures 

2 under grants provided under part D of title III of the En3 ergy Policy and Conservation Act (42 U.S.C. 6321 et seq.) 

4 shall apply to assistance provided under this section. 

5 SEC. 7007. INAPPLICABILITY OF LIMITATION. 

6 The limitations in section 399A(f)(2), (3), and (4) 

7 of the Energy Policy and Conservation Act (42 U.S.C. 

8 6371h–1(f)(2), (3), and (4)) shall not apply to grants 

9 funded with appropriations provided by this Act, except 

10 that such grant funds shall be available for not more than 

11 an amount equal to 80 percent of the costs of the project 

12 for which the grant is provided. 

Æ 


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