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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1 Introduced in House (IH)]

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. Velazquez, 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.

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

                  DIVISION A--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

SEC. 3. PURPOSES AND PRINCIPLES.

    (a) Statement of Purposes.--The purposes of this Act include the 
following:
            (1) To preserve and create jobs and promote economic 
        recovery.
            (2) To assist those most impacted by the recession.
            (3) To provide investments needed to increase economic 
        efficiency by spurring technological advances in science and 
        health.
            (4) To invest in transportation, environmental protection, 
        and other infrastructure that will provide long-term economic 
        benefits.
            (5) To stabilize State and local government budgets, in 
        order to minimize and avoid reductions in essential services 
        and counterproductive state and local tax increases.
    (b) General Principles Concerning Use of Funds.--The President and 
the heads of Federal departments and agencies shall manage and expend 
the funds made available in this Act so as to achieve the purposes 
specified in subsection (a), including commencing expenditures and 
activities as quickly as possible consistent with prudent management.

SEC. 4. REFERENCES.

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

SEC. 5. EMERGENCY DESIGNATIONS.

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

                  DIVISION A--APPROPRIATION PROVISIONS

SEC. 1001. STATEMENT OF APPROPRIATIONS.

     The following sums in this Act are appropriated, out of any money 
in the Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 2009, and for other purposes.

                      TITLE I--GENERAL PROVISIONS

                        Subtitle A--Use of Funds

SEC. 1101. RELATIONSHIP TO OTHER APPROPRIATIONS.

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

SEC. 1102. PREFERENCE FOR QUICK-START ACTIVITIES.

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

SEC. 1103. REQUIREMENT OF TIMELY AWARD OF GRANTS.

    (a) Formula Grants.--Formula grants using funds made available in 
this Act shall be awarded not later than 30 days after the date of the 
enactment of this Act (or, in the case of appropriations not available 
upon enactment, not later than 30 days after the appropriation becomes 
available for obligation), unless expressly provided otherwise in this 
Act.
    (b) Competitive Grants.--Competitive grants using funds made 
available in this Act shall be awarded not later than 90 days after the 
date of the enactment of this Act (or, in the case of appropriations 
not available upon enactment, not later than 90 days after the 
appropriation becomes available for obligation), unless expressly 
provided otherwise in this Act.
    (c) Additional Period for New Programs.--The time limits specified 
in subsections (a) and (b) may each be extended by up to 30 days in the 
case of grants for which funding was not provided in fiscal year 2008.

SEC. 1104. USE IT OR LOSE IT REQUIREMENTS FOR GRANTEES.

    (a) Deadline for Binding Commitments.--Each recipient of a grant 
made using amounts made available in this Act in any account listed in 
subsection (c) shall enter into contracts or other binding commitments 
not later than 1 year after the date of the enactment of this Act (or 
not later than 9 months after the grant is awarded, if later) to make 
use of 50 percent of the funds awarded, and shall enter into contracts 
or other binding commitments not later than 2 years after the date of 
the enactment of this Act (or not later than 21 months after the grant 
is awarded, if later) to make use of the remaining funds. In the case 
of activities to be carried out directly by a grant recipient (rather 
than by contracts, subgrants, or other arrangements with third 
parties), a certification by the recipient specifying the amounts, 
planned timing, and purpose of such expenditures shall be deemed a 
binding commitment for purposes of this section.
    (b) Redistribution of Uncommitted Funds.--The head of the Federal 
department or agency involved shall recover or deobligate any grant 
funds not committed in accordance with subsection (a), and redistribute 
such funds to other recipients eligible under the grant program and 
able to make use of such funds in a timely manner (including binding 
commitments within 120 days after the reallocation).
    (c) Appropriations to Which This Section Applies.--This section 
shall apply to grants made using amounts appropriated in any of the 
following accounts within this Act:
            (1) ``Environmental Protection Agency--State and Tribal 
        Assistance Grants''.
            (2) ``Department of Transportation--Federal Aviation 
        Administration--Grants-in-Aid for Airports''.
            (3) ``Department of Transportation--Federal Railroad 
        Administration--Capital Assistance for Intercity Passenger Rail 
        Service''.
            (4) ``Department of Transportation--Federal Transit 
        Administration--Capital Investment Grants''.
            (5) ``Department of Transportation--Federal Transit 
        Administration--Fixed Guideway Infrastructure Investment''.
            (6) ``Department of Transportation--Federal Transit 
        Administration--Transit Capital Assistance''.
            (7) ``Department of Housing and Urban Development--Public 
        and Indian Housing--Public Housing Capital Fund''.
            (8) ``Department of Housing and Urban Development--Public 
        and Indian Housing--Elderly, Disabled, and Section 8 Assisted 
        Housing Energy Retrofit''.
            (9) ``Department of Housing and Urban Development--Public 
        and Indian Housing--Native American Housing Block Grants''.
            (10) ``Department of Housing and Urban Development--
        Community Planning and Development--HOME Investment 
        Partnerships Program''.
            (11) ``Department of Housing and Urban Development--
        Community Planning and Development--Self-Help and Assisted 
        Homeownership Opportunity Program''.

SEC. 1105. PERIOD OF AVAILABILITY.

    (a) In General.--All funds appropriated in this Act shall remain 
available for obligation until September 30, 2010, unless expressly 
provided otherwise in this Act.
    (b) Reobligation.--Amounts that are not needed or cannot be used 
under title X of this Act for the activity for which originally 
obligated may be deobligated and, notwithstanding the limitation on 
availability specified in subsection (a), reobligated for other 
activities that have received funding from the same account or 
appropriation in such title.

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

    Unless other provision is made in this Act (or in other applicable 
law) for such expenses, up to 0.5 percent of each amount appropriated 
in this Act may be used for the expenses of management and oversight of 
the programs, grants, and activities funded by such appropriation, and 
may be transferred by the head of the Federal department or agency 
involved to any other appropriate account within the department or 
agency for that purpose. Funds set aside under this section shall 
remain available for obligation until September 30, 2012.

SEC. 1107. APPROPRIATIONS FOR INSPECTORS GENERAL.

    In addition to funds otherwise made available in this Act, there 
are hereby appropriated the following sums to the specified Offices of 
Inspector General, to remain available until September 30, 2013, for 
oversight and audit of programs, grants, and projects funded under this 
Act:
            (1) ``Department of Agriculture--Office of Inspector 
        General'', $22,500,000.
            (2) ``Department of Commerce--Office of Inspector 
        General'', $10,000,000.
            (3) ``Department of Defense--Office of the Inspector 
        General'', $15,000,000.
            (4) ``Department of Education--Departmental Management--
        Office of the Inspector General'', $14,000,000.
            (5) ``Department of Energy--Office of Inspector General'', 
        $15,000,000.
            (6) ``Department of Health and Human Services--Office of 
        the Secretary--Office of Inspector General'', $19,000,000.
            (7) ``Department of Homeland Security--Office of Inspector 
        General'', $2,000,000.
            (8) ``Department of Housing and Urban Development--
        Management and Administration--Office of Inspector General'', 
        $15,000,000.
            (9) ``Department of the Interior--Office of Inspector 
        General'', $15,000,000.
            (10) ``Department of Justice--Office of Inspector 
        General'', $2,000,000.
            (11) ``Department of Labor--Departmental Management--Office 
        of Inspector General'', $6,000,000.
            (12) ``Department of Transportation--Office of Inspector 
        General'', $20,000,000.
            (13) ``Department of Veterans Affairs--Office of Inspector 
        General'', $1,000,000.
            (14) ``Environmental Protection Agency--Office of Inspector 
        General'', $20,000,000.
            (15) ``General Services Administration--General 
        Activities--Office of Inspector General'', $15,000,000.
            (16) ``National Aeronautics and Space Administration--
        Office of Inspector General'', $2,000,000.
            (17) ``National Science Foundation--Office of Inspector 
        General'', $2,000,000.
            (18) ``Small Business Administration--Office of Inspector 
        General'', $10,000,000.
            (19) ``Social Security Administration--Office of Inspector 
        General'', $2,000,000.
            (20) ``Corporation for National and Community Service--
        Office of Inspector General'', $1,000,000.

SEC. 1108. APPROPRIATION FOR GOVERNMENT ACCOUNTABILITY OFFICE.

    There is hereby appropriated as an additional amount for 
``Government Accountability Office--Salaries and Expenses'' 
$25,000,000, for oversight activities relating to this Act.

SEC. 1109. PROHIBITED USES.

    None of the funds appropriated or otherwise made available in this 
Act may be used for any casino or other gambling establishment, 
aquarium, zoo, golf course, or swimming pool.

SEC. 1110. USE OF AMERICAN IRON AND STEEL.

    (a) In General.--None of the funds appropriated or otherwise made 
available by this Act may be used for a project for the construction, 
alteration, maintenance, or repair of a public building or public work 
unless all of the iron and steel used in the project is produced in the 
United States.
    (b) Exceptions.--Subsection (a) shall not apply in any case in 
which the head of the Federal department or agency involved finds 
that--
            (1) applying subsection (a) would be inconsistent with the 
        public interest;
            (2) iron and steel are not produced in the United States in 
        sufficient and reasonably available quantities and of a 
        satisfactory quality; or
            (3) inclusion of iron and steel produced in the United 
        States will increase the cost of the overall project by more 
        than 25 percent.
    (c) Written Justification for Waiver.--If the head of a Federal 
department or agency determines that it is necessary to waive the 
application of subsection (a) based on a finding under subsection (b), 
the head of the department or agency shall publish in the Federal 
Register a detailed written justification as to why the provision is 
being waived.
    (d) Definitions.--In this section, the terms ``public building'' 
and ``public work'' have the meanings given such terms in section 1 of 
the Buy American Act (41 U.S.C. 10c) and include airports, bridges, 
canals, dams, dikes, pipelines, railroads, multiline mass transit 
systems, roads, tunnels, harbors, and piers.

SEC. 1111. WAGE RATE REQUIREMENTS.

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

SEC. 1112. ADDITIONAL ASSURANCE OF APPROPRIATE USE OF FUNDS.

    None of the funds provided by this Act may be made available to the 
State of Illinois, or any agency of the State, unless (1) the use of 
such funds by the State is approved in legislation enacted by the State 
after the date of the enactment of this Act, or (2) Rod R. Blagojevich 
no longer holds the office of Governor of the State of Illinois. The 
preceding sentence shall not apply to any funds provided directly to a 
unit of local government (1) by a Federal department or agency, or (2) 
by an established formula from the State.

SEC. 1113. PERSISTENT POVERTY COUNTIES.

    (a) Allocation Requirement.--Of the amount appropriated in this Act 
for ``Department of Agriculture--Rural Development Programs--Rural 
Community Advancement Program'', at least 10 percent shall be allocated 
for assistance in persistent poverty counties.
    (b) Definition.--For purposes of this section, the term 
``persistent poverty counties'' means any county that has had 20 
percent or more of its population living in poverty over the past 30 
years, as measured by the 1980, 1990, and 2000 decennial censuses.

SEC. 1114. REQUIRED PARTICIPATION IN E-VERIFY PROGRAM.

    None of the funds made available in this Act may be used to enter 
into a contract with an entity that does not participate in the E-
verify program described in section 401(b) of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note).

          Subtitle B--Accountability in Recovery Act Spending

            PART 1--TRANSPARENCY AND OVERSIGHT REQUIREMENTS

SEC. 1201. TRANSPARENCY REQUIREMENTS.

    (a) Requirements for Federal Agencies.--Each Federal agency shall 
publish on the website Recovery.gov (as established under section 1226 
of this subtitle)--
            (1) a plan for using funds made available in this Act to 
        the agency; and
            (2) all announcements for grant competitions, allocations 
        of formula grants, and awards of competitive grants using those 
        funds.
    (b) Requirements for Federal, State, and Local Government 
Agencies.--
            (1) Infrastructure investment funding.--With respect to 
        funds made available under this Act for infrastructure 
        investments to Federal, State, or local government agencies, 
        the following requirements apply:
                    (A) Each such agency shall notify the public of 
                funds obligated to particular infrastructure 
                investments by posting the notification on the website 
                Recovery.gov.
                    (B) The notification required by subparagraph (A) 
                shall include the following:
                            (i) A description of the infrastructure 
                        investment funded.
                            (ii) The purpose of the infrastructure 
                        investment.
                            (iii) The total cost of the infrastructure 
                        investment.
                            (iv) The rationale of the agency for 
                        funding the infrastructure investment with 
                        funds made available under this Act.
                            (v) The name of the person to contact at 
                        the agency if there are concerns with the 
                        infrastructure investment and, with respect to 
                        Federal agencies, an email address for the 
                        Federal official in the agency whom the public 
                        can contact.
                            (vi) In the case of State or local 
                        agencies, a certification from the Governor, 
                        mayor, or other chief executive, as 
                        appropriate, that the infrastructure investment 
                        has received the full review and vetting 
                        required by law and that the chief executive 
                        accepts responsibility that the infrastructure 
                        investment is an appropriate use of taxpayer 
                        dollars. A State or local agency may not 
                        receive infrastructure investment funding from 
                        funds made available in this Act unless this 
                        certification is made.
            (2) Operational funding.--With respect to funds made 
        available under this Act in the form of grants for operational 
        purposes to State or local government agencies or other 
        organizations, the agency or organization shall publish on the 
        website Recovery.gov a description of the intended use of the 
        funds, including the number of jobs sustained or created.
    (c) Availability on Internet of Contracts and Grants.--Each 
contract awarded or grant issued using funds made available in this Act 
shall be posted on the Internet and linked to the website Recovery.gov. 
Proprietary data that is required to be kept confidential under 
applicable Federal or State law or regulation shall be redacted before 
posting.

SEC. 1202. INSPECTOR GENERAL REVIEWS.

    (a) Reviews.--Any inspector general of a Federal department or 
executive agency shall review, as appropriate, any concerns raised by 
the public about specific investments using funds made available in 
this Act. Any findings of an inspector general resulting from such a 
review shall be relayed immediately to the head of each department and 
agency. In addition, the findings of such reviews, along with any 
audits conducted by any inspector general of funds made available in 
this Act, shall be posted on the Internet and linked to the website 
Recovery.gov.
    (b) Examination of Records.--The Inspector General of the agency 
concerned may examine any records related to obligations of funds made 
available in this Act.

SEC. 1203. GOVERNMENT ACCOUNTABILITY OFFICE REVIEWS AND REPORTS.

    (a) Reviews and Reports.--The Comptroller General of the United 
States shall conduct bimonthly reviews and prepare reports on such 
reviews on the use by selected States and localities of funds made 
available in this Act. Such reports, along with any audits conducted by 
the Comptroller General of such funds, shall be posted on the Internet 
and linked to the website Recovery.gov.
    (b) Examination of Records.--The Comptroller General may examine 
any records related to obligations of funds made available in this Act.

SEC. 1204. COUNCIL OF ECONOMIC ADVISERS REPORTS.

    The Chairman of the Council of Economic Advisers, in consultation 
with the Director of the Office of Management and Budget and the 
Secretary of the Treasury, shall submit quarterly reports to Congress 
detailing the estimated impact of programs under this Act on 
employment, economic growth, and other key economic indicators.

SEC. 1205. SPECIAL CONTRACTING PROVISIONS.

    The Federal Acquisition Regulation shall apply to contracts awarded 
with funds made available in this Act. To the maximum extent possible, 
such contracts shall be awarded as fixed-price contracts through the 
use of competitive procedures. Existing contracts so awarded may be 
utilized in order to obligate such funds expeditiously. Any contract 
awarded with such funds that is not fixed-price and not awarded using 
competitive procedures shall be posted in a special section of the 
website Recovery.gov.

             PART 2--ACCOUNTABILITY AND TRANSPARENCY BOARD

SEC. 1221. ESTABLISHMENT OF THE ACCOUNTABILITY AND TRANSPARENCY BOARD.

    There is established a board to be known as the ``Recovery Act 
Accountability and Transparency Board'' (hereafter in this subtitle 
referred to as the ``Board'') to coordinate and conduct oversight of 
Federal spending under this Act to prevent waste, fraud, and abuse.

SEC. 1222. COMPOSITION OF BOARD.

    (a) Membership.--The Board shall be composed of seven members as 
follows:
            (1) The Chief Performance Officer of the President, who 
        shall chair the Board.
            (2) Six members designated by the President from the 
        inspectors general and deputy secretaries of the Departments of 
        Education, Energy, Health and Human Services, Transportation, 
        and other Federal departments and agencies to which funds are 
        made available in this Act.
    (b) Terms.--Each member of the Board shall serve for a term to be 
determined by the President.

SEC. 1223. FUNCTIONS OF THE BOARD.

    (a) Oversight.--The Board shall coordinate and conduct oversight of 
spending under this Act to prevent waste, fraud, and abuse. In addition 
to responsibilities set forth in this subtitle, the responsibilities of 
the Board shall include the following:
            (1) Ensuring that the reporting of information regarding 
        contract and grants under this Act meets applicable standards 
        and specifies the purpose of the contract or grant and measures 
        of performance.
            (2) Verifying that competition requirements applicable to 
        contracts and grants under this Act and other applicable 
        Federal law have been satisfied.
            (3) Investigating spending under this Act to determine 
        whether wasteful spending, poor contract or grant management, 
        or other abuses are occurring.
            (4) Reviewing whether there are sufficient qualified 
        acquisition and grant personnel overseeing spending under this 
        Act.
            (5) Reviewing whether acquisition and grant personnel 
        receive adequate training and whether there are appropriate 
        mechanisms for interagency collaboration.
    (b) Reports.--
            (1) Flash and other reports.--The Board shall submit to 
        Congress reports, to be known as ``flash reports'', on 
        potential management and funding problems that require 
        immediate attention. The Board also shall submit to Congress 
        such other reports as the Board considers appropriate on the 
        use and benefits of funds made available in this Act.
            (2) Quarterly.--The Board shall submit to the President and 
        Congress quarterly reports summarizing its findings and the 
        findings of agency inspectors general and may issue additional 
        reports as appropriate.
            (3) Annually.--On an annual basis, the Board shall prepare 
        a consolidated report on the use of funds under this Act. All 
        reports shall be publicly available and shall be posted on the 
        Internet website Recovery.gov, except that portions of reports 
        may be redacted if the portions would disclose information that 
        is protected from public disclosure under section 552 of title 
        5, United States Code (popularly known as the Freedom of 
        Information Act).
    (c) Recommendations to Agencies.--The Board shall make 
recommendations to Federal agencies on measures to prevent waste, 
fraud, and abuse. A Federal agency shall, within 30 days after receipt 
of any such recommendation, submit to the Board, the President, and the 
congressional committees of jurisdiction a report on whether the agency 
agrees or disagrees with the recommendations and what steps, if any, 
the agency plans to take to implement the recommendations.

SEC. 1224. POWERS OF THE BOARD.

    (a) Coordination of Audits and Investigations by Agency Inspectors 
General.--The Board shall coordinate the audits and investigations of 
spending under this Act by agency inspectors general.
    (b) Conduct of Reviews by Board.--The Board may conduct reviews of 
spending under this Act and may collaborate on such reviews with any 
inspector general.
    (c) Meetings.--The Board may, for the purpose of carrying out its 
duties under this Act, hold public meetings, sit and act at times and 
places, and receive information as the Board considers appropriate. The 
Board shall meet at least once a month.
    (d) Obtaining Official Data.--The Board may secure directly from 
any department or agency of the United States information necessary to 
enable it to carry out its duties under this Act. Upon request of the 
Chairman of the Board, the head of that department or agency shall 
furnish that information to the Board.
    (e) Contracts.--The Board may enter into contracts to enable the 
Board to discharge its duties under this Act.

SEC. 1225. STAFFING.

    (a) Executive Director.--The Chairman of the Board may appoint and 
fix the compensation of an executive director and other personnel as 
may be required to carry out the functions of the Board. The Director 
shall be paid at the rate of basic pay for level IV of the Executive 
Schedule.
    (b) Staff of Federal Agencies.--Upon request of the Board, the head 
of any Federal department or agency may detail any Federal official or 
employee, including officials and employees of offices of inspector 
general, to the Board without reimbursement from the Board, and such 
detailed staff shall retain the rights, status, and privileges of his 
or her regular employment without interruption.
    (c) Office Space.--Office space shall be provided to the Board 
within the Executive Office of the President.

SEC. 1226. RECOVERY.GOV.

    (a) Requirement To Establish Website.--The Board shall establish 
and maintain a website on the Internet to be named Recovery.gov, to 
foster greater accountability and transparency in the use of funds made 
available in this Act.
    (b) Purpose.--Recovery.gov shall be a portal or gateway to key 
information related to this Act and provide a window to other 
Government websites with related information.
    (c) Matters Covered.--In establishing the website Recovery.gov, the 
Board shall ensure the following:
            (1) The website shall provide materials explaining what 
        this Act means for citizens. The materials shall be easy to 
        understand and regularly updated.
            (2) The website shall provide accountability information, 
        including a database of findings from audits, inspectors 
        general, and the Government Accountability Office.
            (3) The website shall provide data on relevant economic, 
        financial, grant, and contract information in user-friendly 
        visual presentations to enhance public awareness of the use 
        funds made available in this Act.
            (4) The website shall provide detailed data on contracts 
        awarded by the Government for purposes of carrying out this 
        Act, including information about the competitiveness of the 
        contracting process, notification of solicitations for 
        contracts to be awarded, and information about the process that 
        was used for the award of contracts.
            (5) The website shall include printable reports on funds 
        made available in this Act obligated by month to each State and 
        congressional district.
            (6) The website shall provide a means for the public to 
        give feedback on the performance of contracts awarded for 
        purposes of carrying out this Act.
            (7) The website shall be enhanced and updated as necessary 
        to carry out the purposes of this subtitle.

SEC. 1227. PRESERVATION OF THE INDEPENDENCE OF INSPECTORS GENERAL.

    Inspectors general shall retain independent authority to determine 
whether to conduct an audit or investigation of spending under this 
Act. If the Board requests that an inspector general conduct or refrain 
from conducting an audit or investigation and the inspector general 
rejects the request in whole or in part, the inspector general shall, 
within 30 days after receipt of the request, submit to the Board, the 
agency head, and the congressional committees of jurisdiction a report 
explaining why the inspector general has rejected the request in whole 
or in part.

SEC. 1228. COORDINATION WITH THE COMPTROLLER GENERAL AND STATE 
              AUDITORS.

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

SEC. 1229. INDEPENDENT ADVISORY PANEL.

    (a) Establishment.--There is established a panel to be known as the 
``Independent Advisory Panel'' to advise the Board.
    (b) Membership.--The Panel shall be composed of five members 
appointed by the President from among individuals with expertise in 
economics, public finance, contracting, accounting, or other relevant 
fields.
    (c) Functions.--The Panel shall make recommendations to the Board 
on actions the Board could take to prevent waste, fraud, and abuse in 
Federal spending under this Act.
    (d) Travel Expenses.--Each member of the Panel shall receive travel 
expenses, including per diem in lieu of subsistence, in accordance with 
applicable provisions under subchapter I of chapter 57 of title 5, 
United States Code.

SEC. 1230. FUNDING.

    There is hereby appropriated to the Board $14,000,000 to carry out 
this subtitle.

SEC. 1231. BOARD TERMINATION.

     The Board shall terminate 12 months after 90 percent of the funds 
made available under this Act have been expended, as determined by the 
Director of the Office of Management and Budget.

     PART 3--ADDITIONAL ACCOUNTABILITY AND TRANSPARENCY PROVISIONS

SEC. 1241. LIMITATION ON THE LENGTH OF CERTAIN NONCOMPETITIVE 
              CONTRACTS.

    No contract entered into using funds made available in this Act 
pursuant to the authority provided in section 303(c)(2) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 253(c)(2)) 
that is for an amount greater than the simplified acquisition threshold 
(as defined in section 4(11) of the Office of Federal Procurement 
Policy Act (41 U.S.C. (4)(11))--
            (1) may exceed the time necessary--
                    (A) to meet the unusual and compelling requirements 
                of the work to be performed under the contract; and
                    (B) for the executive agency to enter into another 
                contract for the required goods or services through the 
                use of competitive procedures; and
            (2) may exceed one year unless the head of the executive 
        agency entering into such contract determines that exceptional 
        circumstances apply.

SEC. 1242. ACCESS OF GOVERNMENT ACCOUNTABILITY OFFICE AND OFFICES OF 
              INSPECTOR GENERAL TO CERTAIN EMPLOYEES.

    (a) Access.--Each contract awarded using funds made available in 
this Act shall provide that the Comptroller General and his 
representatives, and any representatives of an appropriate inspector 
general appointed under section 3 or 8G of the Inspector General Act of 
1978 (5 U.S.C. App.), are authorized--
            (1) to examine any records of the contractor or any of its 
        subcontractors, or any State or local agency administering such 
        contract, that directly pertain to, and involve transactions 
        relating to, the contract or subcontract; and
            (2) to interview any current employee regarding such 
        transactions.
    (b) Relationship to Existing Authority.--Nothing in this section 
shall be interpreted to limit or restrict in any way any existing 
authority of the Comptroller General or an Inspector General.

SEC. 1243. PROTECTING STATE AND LOCAL GOVERNMENT AND CONTRACTOR 
              WHISTLEBLOWERS.

    (a) Prohibition of Reprisals.--An employee of any non-Federal 
employer receiving funds made available in this Act may not be 
discharged, demoted, or otherwise discriminated against as a reprisal 
for disclosing to the Board, an inspector general, the Comptroller 
General, a member of Congress, or a Federal agency head, or their 
representatives, information that the employee reasonably believes is 
evidence of--
            (1) gross mismanagement of an executive agency contract or 
        grant;
            (2) a gross waste of executive agency funds;
            (3) a substantial and specific danger to public health or 
        safety; or
            (4) a violation of law related to an executive agency 
        contract (including the competition for or negotiation of a 
        contract) or grant awarded or issued to carry out this Act.
    (b) Investigation of Complaints.--
            (1) A person who believes that the person has been 
        subjected to a reprisal prohibited by subsection (a) may submit 
        a complaint to the inspector general of the executive agency 
        that awarded the contract or issued the grant. Unless the 
        inspector general determines that the complaint is frivolous, 
        the inspector general shall investigate the complaint and, upon 
        completion of such investigation, submit a report of the 
        findings of the investigation to the person, the person's 
        employer, the head of the Federal agency that awarded the 
        contract or issued the grant, and the Board.
            (2)(A) Except as provided under subparagraph (B), the 
        inspector general shall make a determination that a complaint 
        is frivolous or submit a report under paragraph (1) within 180 
        days after receiving the complaint.
            (B) If the inspector general is unable to complete an 
        investigation in time to submit a report within the 180-day 
        period specified in subparagraph (A) and the person submitting 
        the complaint agrees to an extension of time, the inspector 
        general shall submit a report under paragraph (1) within such 
        additional period of time as shall be agreed upon between the 
        inspector general and the person submitting the complaint.
    (c) Remedy and Enforcement Authority.--
            (1) Not later than 30 days after receiving an inspector 
        general report pursuant to subsection (b), the head of the 
        agency concerned shall determine whether there is sufficient 
        basis to conclude that the non-Federal employer has subjected 
        the complainant to a reprisal prohibited by subsection (a) and 
        shall either issue an order denying relief or shall take one or 
        more of the following actions:
                    (A) Order the employer to take affirmative action 
                to abate the reprisal.
                    (B) Order the employer to reinstate the person to 
                the position that the person held before the reprisal, 
                together with the compensation (including back pay), 
                employment benefits, and other terms and conditions of 
                employment that would apply to the person in that 
                position if the reprisal had not been taken.
                    (C) Order the employer to pay the complainant an 
                amount equal to the aggregate amount of all costs and 
                expenses (including attorneys' fees and expert 
                witnesses' fees) that were reasonably incurred by the 
                complainant for, or in connection with, bringing the 
                complaint regarding the reprisal, as determined by the 
                head of the agency.
            (2) If the head of an executive agency issues an order 
        denying relief under paragraph (1) or has not issued an order 
        within 210 days after the submission of a complaint under 
        subsection (b), or in the case of an extension of time under 
        paragraph (b)(2)(B), not later than 30 days after the 
        expiration of the extension of time, and there is no showing 
        that such delay is due to the bad faith of the complainant, the 
        complainant shall be deemed to have exhausted all 
        administrative remedies with respect to the complaint, and the 
        complainant may bring a de novo action at law or equity against 
        the employer to seek compensatory damages and other relief 
        available under this section in the appropriate district court 
        of the United States, which shall have jurisdiction over such 
        an action without regard to the amount in controversy. Such an 
        action shall, at the request of either party to the action, be 
        tried by the court with a jury.
            (3) An inspector general determination and an agency head 
        order denying relief under paragraph (2) shall be admissible in 
        evidence in any de novo action at law or equity brought 
        pursuant to this subsection.
            (4) Whenever a person fails to comply with an order issued 
        under paragraph (1), the head of the agency shall file an 
        action for enforcement of such order in the United States 
        district court for a district in which the reprisal was found 
        to have occurred. In any action brought under this paragraph, 
        the court may grant appropriate relief, including injunctive 
        relief and compensatory and exemplary damages.
            (5) Any person adversely affected or aggrieved by an order 
        issued under paragraph (1) may obtain review of the order's 
        conformance with this subsection, and any regulations issued to 
        carry out this section, in the United States court of appeals 
        for a circuit in which the reprisal is alleged in the order to 
        have occurred. No petition seeking such review may be filed 
        more than 60 days after issuance of the order by the head of 
        the agency. Review shall conform to chapter 7 of title 5.
    (d) Construction.--Nothing in this section may be construed to 
authorize the discharge of, demotion of, or discrimination against an 
employee for a disclosure other than a disclosure protected by 
subsection (a) or to modify or derogate from a right or remedy 
otherwise available to the employee.
    (e) Definitions.--
            (1) Non-federal employer receiving funds under this act.--
        The term ``non-Federal employer receiving funds made available 
        in this Act'' means--
                    (A) with respect to a Federal contract awarded or 
                Federal grant issued to carry out this Act, the 
                contractor or grantee, as the case may be, if the 
                contractor or grantee is an employer; or
                    (B) a State or local government, if the State or 
                local government has received funds made available in 
                this Act.
            (2) Executive agency.--The term ``executive agency'' has 
        the meaning given that term in section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403).
            (3) State or local government.--The term ``State or local 
        government'' means--
                    (A) the government of each of the several States, 
                the District of Columbia, the Commonwealth of Puerto 
                Rico, Guam, American Samoa, the Virgin Islands, the 
                Northern Mariana Islands, or any other territory or 
                possession of the United States; or
                    (B) the government of any political subdivision of 
                a government listed in subparagraph (A).

        TITLE II--AGRICULTURE, NUTRITION, AND RURAL DEVELOPMENT

                       DEPARTMENT OF AGRICULTURE

        Agriculture Buildings and Facilities and Rental Payments

    For an additional amount for ``Agriculture Buildings and Facilities 
and Rental Payments'', $44,000,000, for necessary construction, repair, 
and improvement activities: Provided, That section 1106 of this Act 
shall not apply to this appropriation.

                     Agricultural Research Service

                        buildings and facilities

    For an additional amount for ``Buildings and Facilities'', 
$209,000,000, for work on deferred maintenance at Agricultural Research 
Service facilities: Provided, That priority in the use of such funds 
shall be given to critical deferred maintenance, to projects that can 
be completed, and to activities that can commence promptly following 
enactment of this Act.

                          Farm Service Agency

                         salaries and expenses

    For an additional amount for ``Salaries and Expenses,'' 
$245,000,000, for the purpose of maintaining and modernizing the 
information technology system: Provided, That section 1106 of this Act 
shall not apply to this appropriation.

                 Natural Resources Conservation Service

               watershed and flood prevention operations

     For an additional amount for ``Watershed and Flood Prevention 
Operations'', $350,000,000, of which $175,000,000 is for necessary 
expenses to purchase and restore floodplain easements as authorized by 
section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) 
(except that no more than $50,000,000 of the amount provided for the 
purchase of floodplain easements may be obligated for projects in any 
one State): Provided, That section 1106 of this Act shall not apply to 
this appropriation: Provided further, That priority in the use of such 
funds shall be given to projects that can be fully funded and completed 
with the funds appropriated in this Act, and to activities that can 
commence promptly following enactment of this Act.

                    watershed rehabilitation program

    For an additional amount for ``Watershed Rehabilitation Program'', 
$50,000,000, for necessary expenses to carry out rehabilitation of 
structural measures: Provided, That section 1106 of this Act shall not 
apply to this appropriation: Provided further, That priority in the use 
of such funds shall be given to projects that can be fully funded and 
completed with the funds appropriated in this Act, and to activities 
that can commence promptly following enactment of this Act.

                       Rural Development Programs

                  rural community advancement program

                     (including transfers of funds)

     For an additional amount for gross obligations for the principal 
amount of direct and guaranteed loans as authorized by sections 306 and 
310B and described in sections 381E(d)(1), 381E(d)(2), and 381E(d)(3) 
of the Consolidated Farm and Rural Development Act, to be available 
from the rural community advancement program, as follows: 
$5,838,000,000, of which $1,102,000,000 is for rural community 
facilities direct loans, of which $2,000,000,000 is for business and 
industry guaranteed loans, and of which $2,736,000,000 is for rural 
water and waste disposal direct loans.
    For an additional amount for the cost of direct loans, loan 
guarantees, and grants, including the cost of modifying loans, as 
defined in section 502 of the Congressional Budget Act of 1974, as 
follows: $1,800,000,000, of which $63,000,000 is for rural community 
facilities direct loans, of which $137,000,000 is for rural community 
facilities grants authorized under section 306(a) of the Consolidated 
Farm and Rural Development Act, of which $87,000,000 is for business 
and industry guaranteed loans, of which $13,000,000 is for rural 
business enterprise grants authorized under section 310B of the 
Consolidated Farm and Rural Development Act, of which $400,000,000 is 
for rural water and waste disposal direct loans, and of which 
$1,100,000,000 is for rural water and waste disposal grants authorized 
under section 306(a): Provided, That the amounts appropriated under 
this heading shall be transferred to, and merged with, the 
appropriation for ``Rural Housing Service, Rural Community Facilities 
Program Account'', the appropriation for ``Rural Business-Cooperative 
Service, Rural Business Program Account'', and the appropriation for 
``Rural Utilities Service, Rural Water and Waste Disposal Program 
Account'': Provided further, That priority for awarding such funds 
shall be given to project applications that demonstrate that, if the 
application is approved, all project elements will be fully funded: 
Provided further, That priority for awarding such funds shall be given 
to project applications for activities that can be completed if the 
requested funds are provided: Provided further, That priority for 
awarding such funds shall be given to activities that can commence 
promptly following enactment of this Act.
    In addition to other available funds, the Secretary of Agriculture 
may use not more than 3 percent of the funds made available under this 
account for administrative costs to carry out loans, loan guarantees, 
and grants funded under this account, which shall be transferred and 
merged with the appropriation for ``Rural Development, Salaries and 
Expenses'' and shall remain available until September 30, 2012: 
Provided, That the authority provided in this paragraph shall apply to 
appropriations under this heading in lieu of the provisions of section 
1106 of this Act.
    Funds appropriated by this Act to the Rural Community Advancement 
Program for rural community facilities, rural business, and rural water 
and waste disposal direct loans, loan guarantees and grants may be 
transferred among these programs: Provided, That the Committees on 
Appropriations of the House of Representatives and the Senate shall be 
notified at least 15 days in advance of any transfer.

                         Rural Housing Service

              rural housing insurance fund program account

                     (including transfers of funds)

     For an additional amount of gross obligations for the principal 
amount of direct and guaranteed loans as authorized by title V of the 
Housing Act of 1949, to be available from funds in the rural housing 
insurance fund, as follows: $22,129,000,000 for loans to section 502 
borrowers, of which $4,018,000,000 shall be for direct loans, and of 
which $18,111,000,000 shall be for unsubsidized guaranteed loans.
    For an additional amount for the cost of direct and guaranteed 
loans, including the cost of modifying loans, as defined in section 502 
of the Congressional Budget Act of 1974, as follows: section 502 loans, 
$500,000,000, of which $270,000,000 shall be for direct loans, and of 
which $230,000,000 shall be for unsubsidized guaranteed loans.
    In addition to other available funds, the Secretary of Agriculture 
may use not more than 3 percent of the funds made available under this 
account for administrative costs to carry out loans and loan guarantees 
funded under this account, of which $1,750,000 will be committed to 
agency projects associated with maintaining the compliance, safety, and 
soundness of the portfolio of loans guaranteed through the section 502 
guaranteed loan program: Provided, These funds shall be transferred and 
merged with the appropriation for ``Rural Development, Salaries and 
Expenses'':  Provided further, That the authority provided in this 
paragraph shall apply to appropriations under this heading in lieu of 
the provisions of section 1106 of this Act.
    Funds appropriated by this Act to the Rural Housing Insurance Fund 
Program account for section 502 direct loans and unsubsidized 
guaranteed loans may be transferred between these programs: Provided, 
That the Committees on Appropriations of the House of Representatives 
and the Senate shall be notified at least 15 days in advance of any 
transfer.

                        Rural Utilities Service

         distance learning, telemedicine, and broadband program

                     (including transfers of funds)

     For an additional amount for the cost of broadband loans and loan 
guarantees, as authorized by the Rural Electrification Act of 1936 (7 
U.S.C. 901 et seq.) and for grants, $2,825,000,000: Provided, That the 
cost of direct and guaranteed loans shall be as defined in section 502 
of the Congressional Budget Act of 1974: Provided further, That, 
notwithstanding title VI of the Rural Electrification Act of 1936, this 
amount is available for grants, loans and loan guarantees for open 
access broadband infrastructure in any area of the United States: 
Provided further, That at least 75 percent of the area to be served by 
a project receiving funds from such grants, loans or loan guarantees 
shall be in a rural area without sufficient access to high speed 
broadband service to facilitate rural economic development, as 
determined by the Secretary of Agriculture: Provided further, That 
priority for awarding funds made available under this paragraph shall 
be given to projects that provide service to the most rural residents 
that do not have access to broadband service: Provided further, That 
priority shall be given for project applications from borrowers or 
former borrowers under title II of the Rural Electrification Act of 
1936 and for project applications that include such borrowers or former 
borrowers: Provided further, That notwithstanding section 1103 of this 
Act, 50 percent of the grants, loans, and loan guarantees made 
available under this heading shall be awarded not later than September 
30, 2009: Provided further, That priority for awarding such funds shall 
be given to project applications that demonstrate that, if the 
application is approved, all project elements will be fully funded: 
Provided further, That priority for awarding such funds shall be given 
to project applications for activities that can be completed if the 
requested funds are provided: Provided further, That priority for 
awarding such funds shall be given to activities that can commence 
promptly following enactment of this Act: Provided further, That no 
area of a project funded with amounts made available under this 
paragraph may receive funding to provide broadband service under the 
Broadband Deployment Grant Program: Provided further, That the 
Secretary shall submit a report on planned spending and actual 
obligations describing the use of these funds not later than 90 days 
after the date of enactment of this Act, and quarterly thereafter until 
all funds are obligated, to the Committees on Appropriations of the 
House of Representatives and the Senate.
     In addition to other available funds, the Secretary may use not 
more than 3 percent of the funds made available under this account for 
administrative costs to carry out loans, loan guarantees, and grants 
funded under this account, which shall be transferred and merged with 
the appropriation for ``Rural Development, Salaries and Expenses'' and 
shall remain available until September 30, 2012: Provided, That the 
authority provided in this paragraph shall apply to appropriations 
under this heading in lieu of the provisions of section 1106 of this 
Act.

                       Food and Nutrition Service

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

    For an additional amount for the special supplemental nutrition 
program as authorized by section 17 of the Child Nutrition Act of 1966 
(42 U.S.C. 1786), $100,000,000, for the purposes specified in section 
17(h)(10)(B)(ii) for the Secretary of Agriculture to provide assistance 
to State agencies to implement new management information systems or 
improve existing management information systems for the program.

                   emergency food assistance program

    For an additional amount for the emergency food assistance program 
as authorized by section 27(a) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2036(a)) and section 204(a)(1) of the Emergency Food Assistance 
Act of 1983 (7 U.S.C. 7508(a)(1)), $150,000,000, of which $100,000,000 
is for the purchase of commodities and of which $50,000,000 is for 
costs associated with the distribution of commodities.

                     GENERAL PROVISIONS, THIS TITLE

SEC. 2001. TEMPORARY INCREASE IN BENEFITS UNDER THE SUPPLEMENTAL 
              NUTRITION ASSISTANCE PROGRAM.

    (a) Maximum Benefit Increase.--
            (1) In general.--Beginning the first month that begins not 
        less than 25 days after the date of enactment of this Act, the 
        value of benefits determined under section 8(a) of the Food and 
        Nutrition Act of 2008 and consolidated block grants for Puerto 
        Rico and American Samoa determined under section 19(a) of such 
        Act shall be calculated using 113.6 percent of the June 2008 
        value of the thrifty food plan as specified under section 3(o) 
        of such Act.
            (2) Termination.--
                    (A) The authority provided by this subsection shall 
                terminate after September 30, 2009.
                    (B) Notwithstanding subparagraph (A), the Secretary 
                of Agriculture may not reduce the value of the maximum 
                allotment below the level in effect for fiscal year 
                2009 as a result of paragraph (1).
    (b) Requirements for the Secretary.--In carrying out this section, 
the Secretary shall--
            (1) consider the benefit increases described in subsection 
        (a) to be a ``mass change'';
            (2) require a simple process for States to notify 
        households of the increase in benefits;
            (3) consider section 16(c)(3)(A) of the Food and Nutrition 
        Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply to any errors in 
        the implementation of this section, without regard to the 120-
        day limit described in that section; and
            (4) have the authority to take such measures as necessary 
        to ensure the efficient administration of the benefits provided 
        in this section.
    (c) Administrative Expenses.--
            (1) In general.--For the costs of State administrative 
        expenses associated with carrying out this section, the 
        Secretary shall make available $150,000,000 in each of fiscal 
        years 2009 and 2010, to remain available through September 30, 
        2012, of which $4,500,000 is for necessary expenses of the Food 
        and Nutrition Service for management and oversight of the 
        program and for monitoring the integrity and evaluating the 
        effects of the payments made under this section.
            (2) Availability of funds.--Funds described in paragraph 
        (1) shall be made available as grants to State agencies based 
        on each State's share of households that participate in the 
        Supplemental Nutrition Assistance Program as reported to the 
        Department of Agriculture for the 12-month period ending with 
        June, 2008.
    (d) Treatment of Jobless Workers.--Beginning with the first month 
that begins not less than 25 days after the date of enactment of this 
Act, and for each subsequent month through September 30, 2010, jobless 
adults who comply with work registration and employment and training 
requirements under section 6, section 20, or section 26 of the Food and 
Nutrition Act of 2008 (7 U.S.C. 2015, 2029, or 2035) shall not be 
disqualified from the Supplemental Nutrition Assistance Program because 
of the provisions of section 6(o)(2) of such Act (7 U.S.C. 2015(o)(2)). 
Beginning on October 1, 2010, for the purposes of section 6(o), a State 
agency shall disregard any period during which an individual received 
Supplemental Nutrition Assistance Program benefits prior to October 1, 
2010.
    (e) Funding.--There is appropriated to the Secretary of Agriculture 
such sums as are necessary to carry out this section, to remain 
available until expended. Section 1106 of this Act shall not apply to 
this appropriation.

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

    Section 17(r) of the Richard B. Russell National School Lunch Act 
(42 U.S.C. 1766(r)) is amended by striking paragraph (5).

               TITLE III--COMMERCE, JUSTICE, AND SCIENCE

                          Subtitle A--Commerce

                         DEPARTMENT OF COMMERCE

                  Economic Development Administration

                Economic Development Assistance Programs

                     (including transfer of funds)

    For an additional amount for ``Economic Development Assistance 
Programs'', $250,000,000: Provided, That the amount set aside from this 
appropriation pursuant to section 1106 of this Act shall not exceed 2 
percent instead of the percentage specified in such section: Provided 
further, That the amount set aside pursuant to the previous proviso 
shall be transferred to and merged with the appropriation for 
``Salaries and Expenses'' for purposes of program administration and 
oversight: Provided further, That up to $50,000,000 may be transferred 
to federally authorized regional economic development commissions.

                          Bureau of the Census

                     periodic censuses and programs

     For an additional amount for ``Periodic Censuses and Programs'', 
$1,000,000,000: Provided, That section 1106 of this Act shall not apply 
to funds provided under this heading.

       National Telecommunications and Information Administration

                         salaries and expenses

     For an additional amount for ``Salaries and Expenses'', 
$350,000,000, to remain available until September 30, 2011: Provided, 
That funds shall be available to establish the State Broadband Data and 
Development Grant Program, as authorized by Public Law 110-385, for the 
development and implementation of statewide initiatives to identify and 
track the availability and adoption of broadband services within each 
State, and to develop and maintain a nationwide broadband inventory 
map, as authorized by section 6001 of division B of this Act.

            wireless and broadband deployment grant programs

                     (including transfer of funds)

    For necessary expenses related to the Wireless and Broadband 
Deployment Grant Programs established by section 6002 of division B of 
this Act, $2,825,000,000, of which $1,000,000,000 shall be for Wireless 
Deployment Grants and $1,825,000,000 shall be for Broadband Deployment 
Grants: Provided, That the National Telecommunications and Information 
Administration shall submit a report on planned spending and actual 
obligations describing the use of these funds not later than 120 days 
after the date of enactment of this Act, and an update report not later 
than 60 days following the initial report, to the Committees on 
Appropriations of the House of Representatives and the Senate, the 
Committee on Energy and Commerce of the House of Representatives, and 
the Committee on Commerce, Science, and Transportation of the Senate: 
Provided further, That notwithstanding section 1103 of this Act, 50 
percent of the grants made available under this heading shall be 
awarded not later than September 30, 2009: Provided further, That up to 
20 percent of the funds provided under this heading for Wireless 
Deployment Grants and Broadband Deployment Grants may be transferred 
between these programs: Provided further, That the Committees on 
Appropriations of the House of Representatives and the Senate shall be 
notified at least 15 days in advance of any transfer.

                digital-to-analog converter box program

    Notwithstanding any other provision of law, and in addition to 
amounts otherwise provided in any other Act, for costs associated with 
the Digital-to-Analog Converter Box Program, $650,000,000, to be 
available until September 30, 2009: Provided, That these funds shall be 
available for coupons and related activities, including but not limited 
to education, consumer support and outreach, as deemed appropriate and 
necessary to ensure a timely conversion of analog to digital 
television.

             National Institute of Standards and Technology

             scientific and technical research and services

     For an additional amount for ``Scientific and Technical Research 
and Services'', $100,000,000.

                     industrial technology services

     For an additional amount for ``Industrial Technology Services'', 
$100,000,000, of which $70,000,000 shall be available for the necessary 
expenses of the Technology Innovation Program and $30,000,000 shall be 
available for the necessary expenses of the Hollings Manufacturing 
Extension Partnership.

                  construction of research facilities

     For an additional amount for ``Construction of Research 
Facilities'', as authorized by sections 13 through 15 of the Act of 
March 13, 1901 (15 U.S.C. 278c-278e), $300,000,000, for a competitive 
construction grant program for research science buildings: Provided 
further, That for peer-reviewed grants made under this heading, the 
time limitation provided in section 1103(b) of this Act shall be 120 
days.

            National Oceanic and Atmospheric Administration

                  operations, research, and facilities

    For an additional amount for ``Operations, Research, and 
Facilities'', $400,000,000, for habitat restoration and mitigation 
activities.

               procurement, acquisition and construction

    For an additional amount for ``Procurement, Acquisition and 
Construction'', $600,000,000, for accelerating satellite development 
and acquisition, acquiring climate sensors and climate modeling 
capacity, and establishing climate data records: Provided further, That 
not less than $140,000,000 shall be available for climate data 
modeling.

                          Subtitle B--Justice

                         DEPARTMENT OF JUSTICE

               State and Local Law Enforcement Activities

                       Office of Justice Programs

               state and local law enforcement assistance

    For an additional amount for ``State and Local Law Enforcement 
Assistance'', $3,000,000,000, to be available for the Edward Byrne 
Memorial Justice Assistance Grant Program as authorized by subpart 1 of 
part E of title I of the Omnibus Crime Control and Safe Streets Act of 
1968, (except that section 1001(c), and the special rules for Puerto 
Rico under section 505(g), of such Act shall not apply for purposes of 
this Act): Provided, That section 1106 of this Act shall not apply to 
funds provided under this heading.

                  community oriented policing services

    For an additional amount for ``Community Oriented Policing 
Services'', $1,000,000,000, to be available for grants under section 
1701 of title I of the 1968 Act (42 U.S.C. 3796dd) for the hiring and 
rehiring of additional career law enforcement officers under part Q of 
such title notwithstanding subsection (i) of such section: Provided, 
That for peer-reviewed grants made under this heading, the time 
limitation provided in section 1103(b) of this Act shall be 120 days.

                          Subtitle C--Science

             NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

                                science

     For an additional amount for ``Science'', $400,000,000, of which 
not less than $250,000,000 shall be solely for accelerating the 
development of the tier 1 set of Earth science climate research 
missions recommended by the National Academies Decadal Survey.

                              aeronautics

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

                     cross agency support programs

     For an additional amount for ``Cross Agency Support Programs'', 
for necessary expenses for restoration and mitigation of National 
Aeronautics and Space Administration owned infrastructure and 
facilities related to the consequences of hurricanes, floods, and other 
natural disasters occurring during 2008 for which the President 
declared a major disaster under title IV of the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act of 1974, $50,000,000.

                      NATIONAL SCIENCE FOUNDATION

                    research and related activities

     For an additional amount for ``Research and Related Activities'', 
$2,500,000,000: Provided, That $300,000,000 shall be available solely 
for the Major Research Instrumentation program and $200,000,000 shall 
be for activities authorized by title II of Public Law 100-570 for 
academic research facilities modernization: Provided, That for peer-
reviewed grants made under this heading, the time limitation provided 
in section 1103(b) of this Act shall be 120 days.

                     education and human resources

     For an additional amount for ``Education and Human Resources'', 
$100,000,000: Provided, That $60,000,000 shall be for activities 
authorized by section 7030 of Public Law 110-69 and $40,000,000 shall 
be for activities authorized by section 9 of the National Science 
Foundation Authorization Act of 2002 (42 U.S.C. 1862n).

          major research equipment and facilities construction

     For an additional amount for ``Major Research Equipment and 
Facilities Construction'', $400,000,000, which shall be available only 
for approved projects.

                           TITLE IV--DEFENSE

                         DEPARTMENT OF DEFENSE

              Facility Infrastructure Investments, Defense

    For expenses, not otherwise provided for, to improve, repair and 
modernize Department of Defense facilities, restore and modernize Army 
barracks, and invest in the energy efficiency of Department of Defense 
facilities, $4,500,000,000, for Facilities Sustainment, Restoration and 
Modernization programs of the Department of Defense (including minor 
construction and major maintenance and repair), which shall be 
available as follows:
            (1) ``Operation and Maintenance, Army'', $1,490,804,000.
            (2) ``Operation and Maintenance, Navy'', $624,380,000.
            (3) ``Operation and Maintenance, Marine Corps'', 
        $128,499,000.
            (4) ``Operation and Maintenance, Air Force'', 
        $1,236,810,000.
            (5) ``Defense Health Program'', $454,658,000.
            (6) ``Operation and Maintenance, Army Reserve'', 
        $110,899,000.
            (7) ``Operation and Maintenance, Navy Reserve'', 
        $62,162,000.
            (8) ``Operation and Maintenance, Marine Corps Reserve'', 
        $45,038,000.
            (9) ``Operation and Maintenance, Air Force Reserve'', 
        $14,881,000.
            (10) ``Operation and Maintenance, Army National Guard'', 
        $302,700,000.
            (11) ``Operation and Maintenance, Air National Guard'', 
        $29,169,000.

                Energy Research and Development, Defense

    For expenses, not otherwise provided for, for research, 
development, test and evaluation programs for improvements in energy 
generation, transmission, regulation, use, and storage, for military 
installations, military vehicles, and other military equipment, 
$350,000,000, which shall be available as follows:
            (1) ``Research, Development, Test and Evaluation, Army'', 
        $87,500,000.
            (2) ``Research, Development, Test and Evaluation, Navy'', 
        $87,500,000.
            (3) ``Research, Development, Test and Evaluation, Air 
        Force'', $87,500,000.
            (4) ``Research, Development, Test and Evaluation, Defense-
        Wide'', $87,500,000

                       TITLE V--ENERGY AND WATER

                         DEPARTMENT OF THE ARMY

                       Corps of Engineers--Civil

                              construction

    For an additional amount for ``Construction'', $2,000,000,000: 
Provided, That section 102 of Public Law 109-103 (33 U.S.C. 2221) shall 
not apply to funds provided in this paragraph: Provided further, That 
notwithstanding any other provision of law, funds provided in this 
paragraph shall not be cost shared with the Inland Waterways Trust Fund 
as authorized in Public Law 99-662: Provided further, That funds 
provided in this paragraph may only be used for programs, projects or 
activities previously funded: Provided further, That the Corps of 
Engineers is directed to prioritize funding for activities based on the 
ability to accelerate existing contracts or fully fund project elements 
and contracts for such elements in a time period of 2 years after the 
date of enactment of this Act giving preference to projects and 
activities that are labor intensive: Provided further, That funds 
provided in this paragraph shall be used for elements of projects, 
programs or activities that can be completed using funds provided 
herein: Provided further, That funds appropriated in this paragraph may 
be used by the Secretary of the Army, acting through the Chief of 
Engineers, to undertake work authorized to be carried out in accordance 
with one or more of section 14 of the Flood Control Act of 1946 (33 
U.S.C. 701r), section 205 of the Flood Control Act of 1948 (33 U.S.C. 
701s), section 206 of the Water Resources Development Act of 1996 (33 
U.S.C. 2330), and section 1135 of the Water Resources Development Act 
of 1986 (33 U.S.C. 2309a), notwithstanding the program cost limitations 
set forth in those sections: Provided further, That the limitation 
concerning total project costs in section 902 of the Water Resources 
Development Act of 1986, as amended (33 U.S.C. 2280), shall not apply 
during fiscal year 2009 to any project that received funds provided in 
this title: Provided further, That for projects that are being 
completed with funds appropriated in this Act that are otherwise 
expired or lapsed for obligation, expired or lapsed funds appropriated 
in this Act may be used to pay the cost of associated supervision, 
inspection, overhead, engineering and design on those projects and on 
subsequent claims, if any: Provided further, That the Secretary of the 
Army shall submit a quarterly report to the Committees on 
Appropriations of the House of Representatives and the Senate detailing 
the allocation, obligation and expenditures of these funds, beginning 
not later than 45 days after enactment of this Act.

                   mississippi river and tributaries

    For an additional amount for ``Mississippi River and Tributaries'', 
$250,000,000: Provided, That funds provided in this paragraph may only 
be used for programs, projects, or activities previously funded: 
Provided further, That the Corps of Engineers is directed to prioritize 
funding for activities based on the ability to accelerate existing 
contracts or fully fund project elements and contracts for such 
elements in a time period of 2 years after the date of enactment of 
this Act giving preference to projects and activities that are labor 
intensive: Provided further, That funds provided in this paragraph 
shall be used for elements of projects, programs, or activities that 
can be completed using funds provided herein: Provided further, That 
for projects that are being completed with funds appropriated in this 
Act that are otherwise expired or lapsed for obligation, expired or 
lapsed funds appropriated in this Act may be used to pay the cost of 
associated supervision, inspection, overhead, engineering and design on 
those projects and on subsequent claims, if any: Provided further, That 
the Secretary of the Army shall submit a quarterly report to the 
Committees on Appropriations of the House of Representatives and the 
Senate detailing the allocation, obligation and expenditures of these 
funds, beginning not later than 45 days after enactment of this Act.

                       operation and maintenance

    For an additional amount for ``Operation and Maintenance'', 
$2,225,000,000: Provided, That the Corps of Engineers is directed to 
prioritize funding for activities based on the ability to accelerate 
existing contracts or fully fund project elements and contracts for 
such elements in a time period of 2 years after the date of enactment 
of this Act giving preference to projects and activities that are labor 
intensive: Provided further, That funds provided in this paragraph 
shall be used for elements of projects, programs, or activities that 
can be completed using funds provided herein: Provided further, That 
for projects that are being completed with funds appropriated in this 
Act that are otherwise expired or lapsed for obligation, expired or 
lapsed funds appropriated in this Act may be used to pay the cost of 
associated supervision, inspection, overhead, engineering and design on 
those projects and on subsequent claims, if any: Provided further, That 
the Secretary of the Army shall submit a quarterly report to the 
Committees on Appropriations of the House of Representatives and the 
Senate detailing the allocation, obligation and expenditures of these 
funds, beginning not later than 45 days after enactment of this Act.

                           regulatory program

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

                       DEPARTMENT OF THE INTERIOR

                         Bureau of Reclamation

                      water and related resources

    For an additional amount for ``Water and Related Resources'', 
$500,000,000: Provided, That of the amount appropriated under this 
heading, not less than $126,000,000 shall be used for water reclamation 
and reuse projects authorized under title XVI of Public Law 102-575: 
Provided further, That of the amount appropriated under this heading, 
not less than $80,000,000 shall be used for rural water projects and 
these funds shall be expended primarily on water intake and treatment 
facilities of such projects: Provided further, That the costs of 
reimbursable activities, other than for maintenance and rehabilitation, 
carried out with funds made available under this heading shall be 
repaid pursuant to existing authorities and agreements: Provided 
further, That the costs of maintenance and rehabilitation activities 
carried out with funds provided in this Act shall be repaid pursuant to 
existing authority, except the length of repayment period shall be 
determined on needs-based criteria to be established and adopted by the 
Commissioner of the Bureau of Reclamation, but in no case shall the 
repayment period exceed 25 years.

                          DEPARTMENT OF ENERGY

                            ENERGY PROGRAMS

                 Energy Efficiency and Renewable Energy

     For an additional amount for ``Energy Efficiency and Renewable 
Energy'', $18,500,000,000, which shall be used as follows:
            (1) $2,000,000,000 shall be for expenses necessary for 
        energy efficiency and renewable energy research, development, 
        demonstration and deployment activities, to accelerate the 
        development of technologies, to include advanced batteries, of 
        which not less than $800,000,000 is for biomass and 
        $400,000,000 is for geothermal technologies.
            (2) $500,000,000 shall be for expenses necessary to 
        implement the programs authorized under part E of title III of 
        the Energy Policy and Conservation Act (42 U.S.C. 6341 et 
        seq.).
            (3) $1,000,000,000 shall be for the cost of grants to 
        institutional entities for energy sustainability and efficiency 
        under section 399A of the Energy Policy and Conservation Act 
        (42 U.S.C. 6371h-1).
            (4) $6,200,000,000 shall be for the Weatherization 
        Assistance Program under part A of title IV of the Energy 
        Conservation and Production Act (42 U.S.C. 6861 et seq.).
            (5) $3,500,000,000 shall be for Energy Efficiency and 
        Conservation Block Grants, for implementation of programs 
        authorized under subtitle E of title V of the Energy 
        Independence and Security Act of 2007 (42 U.S.C. 17151 et 
        seq.).
            (6) $3,400,000,000 shall be for the State Energy Program 
        authorized under part D of title III of the Energy Policy and 
        Conservation Act (42 U.S.C. 6321).
            (7) $200,000,000 shall be for expenses necessary to 
        implement the programs authorized under section 131 of the 
        Energy Independence and Security Act of 2007 (42 U.S.C. 17011).
            (8) $300,000,000 shall be for expenses necessary to 
        implement the program authorized under section 124 of the 
        Energy Policy Act of 2005 (42 U.S.C. 15821) and the Energy Star 
        program.
            (9) $400,000,000 shall be for expenses necessary to 
        implement the program authorized under section 721 of the 
        Energy Policy Act of 2005 (42 U.S.C. 16071).
            (10) $1,000,000,000 shall be for expenses necessary for the 
        manufacturing of advanced batteries authorized under section 
        136(b)(1)(B) of the Energy Independence and Security Act of 
        2007 (42 U.S.C. 17013(b)(1)(B)):
Provided, That notwithstanding section 3304 of title 5, United States 
Code, and without regard to the provisions of sections 3309 through 
3318 of such title 5, the Secretary of Energy may, upon a determination 
that there is a severe shortage of candidates or a critical hiring need 
for particular positions, recruit and directly appoint highly qualified 
individuals into the competitive service: Provided further, That such 
authority shall not apply to positions in the Excepted Service or the 
Senior Executive Service: Provided further, That any action authorized 
herein shall be consistent with the merit principles of section 2301 of 
such title 5, and the Department shall comply with the public notice 
requirements of section 3327 of such title 5.

              Electricity Delivery and Energy Reliability

    For an additional amount for ``Electricity Delivery and Energy 
Reliability,'' $4,500,000,000: Provided, That funds shall be available 
for expenses necessary for electricity delivery and energy reliability 
activities to modernize the electric grid, enhance security and 
reliability of the energy infrastructure, energy storage research, 
development, demonstration and deployment, and facilitate recovery from 
disruptions to the energy supply, and for implementation of programs 
authorized under title XIII of the Energy Independence and Security Act 
of 2007 (42 U.S.C. 17381 et seq.): Provided further, That of such 
amounts, $100,000,000 shall be for worker training: Provided further, 
That the Secretary of Energy may use or transfer amounts provided under 
this heading to carry out new authority for transmission improvements, 
if such authority is enacted in any subsequent Act, consistent with 
existing fiscal management practices and procedures.

                Advanced Battery Loan Guarantee Program

    For the cost of guaranteed loans as authorized by section 135 of 
the Energy Independence and Security Act of 2007 (42 U.S.C. 17012), 
$1,000,000,000, to remain available until expended: Provided, That of 
such amount, $10,000,000 shall be used for administrative expenses in 
carrying out the guaranteed loan program, and shall be in lieu of the 
amount set aside under section 1106 of this Act: Provided further, That 
the cost of such loans, including the cost of modifying such loans, 
shall be as defined in section 502 of the Congressional Budget Act of 
1974.

                  Institutional Loan Guarantee Program

    For the cost of guaranteed loans as authorized by section 399A of 
the Energy Policy and Conservation Act (42 U.S.C. 6371h-1), 
$500,000,000: Provided, That of such amount, $10,000,000 shall be used 
for administrative expenses in carrying out the guaranteed loan 
program, and shall be in lieu of the amount set aside under section 
1106 of this Act: Provided further, That the cost of such loans, 
including the cost of modifying such loans, shall be as defined in 
section 502 of the Congressional Budget Act of 1974.

              Innovative Technology Loan Guarantee Program

    For an additional amount for ``Innovative Technology Loan Guarantee 
Program'' for the cost of guaranteed loans authorized by section 1705 
of the Energy Policy Act of 2005, $8,000,000,000: Provided, That of 
such amount, $25,000,000 shall be used for administrative expenses in 
carrying out the guaranteed loan program, and shall be in lieu of the 
amount set aside under section 1106 of this Act: Provided further, That 
the cost of such loans, including the cost of modifying such loans, 
shall be as defined in section 502 of the Congressional Budget Act of 
1974.

                             Fossil Energy

     For an additional amount for ``Fossil Energy'', $2,400,000,000 for 
necessary expenses to demonstrate carbon capture and sequestration 
technologies as authorized under section 702 of the Energy Independence 
and Security Act of 2007.

                                Science

    For an additional amount for ``Science'', $2,000,000,000: Provided, 
That of such amounts, not less than $400,000,000 shall be used for the 
Advanced Research Projects Agency--Energy authorized under section 5012 
of the America COMPETES Act (42 U.S.C. 16538): Provided further, That 
of such amounts, not less than $100,000,000 shall be used for advanced 
scientific computing.

               ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

                     Defense Environmental Cleanup

    For an additional amount for ``Defense Environmental Cleanup,'' 
$500,000,000: Provided, That such amounts shall be used for elements of 
projects, programs, or activities that can be completed using funds 
provided herein.

                     GENERAL PROVISIONS, THIS TITLE

SEC. 5001. WESTERN AREA POWER ADMINISTRATION BORROWING AUTHORITY.

    The Hoover Power Plant Act of 1984 (Public Law 98-381) is amended 
by adding at the end the following:

                    ``TITLE III--BORROWING AUTHORITY

``SEC. 301. WESTERN AREA POWER ADMINISTRATION BORROWING AUTHORITY.

    ``(a) Definitions.--In this section--
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of the Western Area Power Administration.
            ``(2) Secretary.--The term `Secretary' means the Secretary 
        of the Treasury.
    ``(b) Authority.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, subject to paragraphs (2) through (5)--
                    ``(A) the Western Area Power Administration may 
                borrow funds from the Treasury; and
                    ``(B) the Secretary shall, without further 
                appropriation and without fiscal year limitation, loan 
                to the Western Area Power Administration, on such terms 
                as may be fixed by the Administrator and the Secretary, 
                such sums (not to exceed, in the aggregate (including 
                deferred interest), $3,250,000,000 in outstanding 
                repayable balances at any 1 time) as, in the judgment 
                of the Administrator, are from time to time required 
                for the purpose of--
                            ``(i) constructing, financing, 
                        facilitating, or studying construction of new 
                        or upgraded electric power transmission lines 
                        and related facilities with at least 1 terminus 
                        within the area served by the Western Area 
                        Power Administration; and
                            ``(ii) delivering or facilitating the 
                        delivery of power generated by renewable energy 
                        resources constructed or reasonably expected to 
                        be constructed after the date of enactment of 
                        this section.
            ``(2) Interest.--The rate of interest to be charged in 
        connection with any loan made pursuant to this subsection shall 
        be fixed by the Secretary, taking into consideration market 
        yields on outstanding marketable obligations of the United 
        States of comparable maturities as of the date of the loan.
            ``(3) Refinancing.--The Western Area Power Administration 
        may refinance loans taken pursuant to this section within the 
        Treasury.
            ``(4) Participation.--The Administrator may permit other 
        entities to participate in projects financed under this 
        section.
            ``(5) Congressional review of disbursement.--Effective upon 
        the date of enactment of this section, the Administrator shall 
        have the authority to have utilized $1,750,000,000 at any one 
        time. If the Administrator seeks to borrow funds above 
        $1,750,000,000, the funds will be disbursed unless there is 
        enacted, within 90 calendar days of the first such request, a 
        joint resolution that rescinds the remainder of the balance of 
        the borrowing authority provided in this section.
    ``(c) Transmission Line and Related Facility Projects.--
            ``(1) In general.--For repayment purposes, each 
        transmission line and related facility project in which the 
        Western Area Power Administration participates pursuant to this 
        section shall be treated as separate and distinct from--
                    ``(A) each other such project; and
                    ``(B) all other Western Area Power Administration 
                power and transmission facilities.
            ``(2) Proceeds.--The Western Area Power Administration 
        shall apply the proceeds from the use of the transmission 
        capacity from an individual project under this section to the 
        repayment of the principal and interest of the loan from the 
        Treasury attributable to that project, after reserving such 
        funds as the Western Area Power Administration determines are 
        necessary--
                    ``(A) to pay for any ancillary services that are 
                provided; and
                    ``(B) to meet the costs of operating and 
                maintaining the new project from which the revenues are 
                derived.
            ``(3) Source of revenue.--Revenue from the use of projects 
        under this section shall be the only source of revenue for--
                    ``(A) repayment of the associated loan for the 
                project; and
                    ``(B) payment of expenses for ancillary services 
                and operation and maintenance.
            ``(4) Limitation on authority.--Nothing in this section 
        confers on the Administrator any obligation to provide 
        ancillary services to users of transmission facilities 
        developed under this section.
    ``(d) Certification.--
            ``(1) In general.--For each project in which the Western 
        Area Power Administration participates pursuant to this 
        section, the Administrator shall certify, prior to committing 
        funds for any such project, that--
                    ``(A) the project is in the public interest;
                    ``(B) the project will not adversely impact system 
                reliability or operations, or other statutory 
                obligations; and
                    ``(C) it is reasonable to expect that the proceeds 
                from the project shall be adequate to make repayment of 
                the loan.
            ``(2) Forgiveness of balances.--
                    ``(A) In general.--If, at the end of the useful 
                life of a project, there is a remaining balance owed to 
                the Treasury under this section, the balance shall be 
                forgiven.
                    ``(B) Unconstructed projects.--Funds expended to 
                study projects that are considered pursuant to this 
                section but that are not constructed shall be forgiven.
                    ``(C) Notification.--The Administrator shall notify 
                the Secretary of such amounts as are to be forgiven 
                under this paragraph.
    ``(e) Public Processes.--
            ``(1) Policies and practices.--Prior to requesting any 
        loans under this section, the Administrator shall use a public 
        process to develop practices and policies that implement the 
        authority granted by this section.
            ``(2) Requests for interests.--In the course of selecting 
        potential projects to be funded under this section, the 
        Administrator shall seek requests for interest from entities 
        interested in identifying potential projects through one or 
        more notices published in the Federal Register.''.

SEC. 5002. BONNEVILLE POWER ADMINISTRATION.

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

SEC. 5003. APPROPRIATIONS TRANSFER AUTHORITY.

    Not to exceed 20 percent of the amounts made available in this Act 
to the Department of Energy for ``Energy Efficiency and Renewable 
Energy'', ``Electricity Delivery and Energy Reliability'', and 
``Advanced Battery Loan Guarantee Program'' may be transferred within 
and between such accounts, except that no amount specified under any 
such heading may be increased or decreased by more than a total of 20 
percent by such transfers, and notification of such transfers shall be 
submitted promptly to the Committees on Appropriations of the House of 
Representatives and the Senate.

          TITLE VI--FINANCIAL SERVICES AND GENERAL GOVERNMENT

                      Subtitle A--General Services

                    General Services Administration

                         federal buildings fund

                 limitations on availability of revenue

                     (including transfer of funds)

     For an additional amount to be deposited in the Federal Buildings 
Fund, $7,700,000,000 for real property activities with priority given 
to activities that can commence promptly following enactment of this 
Act; of which up to $1,000,000,000 shall be used for construction, 
repair, and alteration of border facilities and land ports of entry; of 
which not less than $6,000,000,000 shall be used for construction, 
repair, and alteration of Federal buildings for projects that will 
create the greatest impact on energy efficiency and conservation; of 
which $108,000,000 shall remain available until September 30, 2012, and 
shall be used for rental of space costs associated with the 
construction, repair, and alteration of these projects; Provided, That 
of the amounts provided, $160,000,000 shall remain available until 
September 30, 2012, and shall be for building operations in support of 
the activities described in this paragraph: Provided further, That the 
preceding proviso shall apply to this appropriation in lieu of the 
provisions of section 1106 of this Act: Provided further, That the 
Administrator of General Services is authorized to initiate design, 
construction, repair, alteration, leasing, and other projects through 
existing authorities of the Administrator: Provided further, That the 
Administrator shall submit a detailed plan, by project, regarding the 
use of funds to the Committees on Appropriations of the House of 
Representatives and the Senate within 30 days after enactment of this 
Act, and shall provide notification to the Committees within 15 days 
prior to any changes regarding the use of these funds: Provided 
further, That the Administrator shall report to the Committees on the 
obligation of these funds on a quarterly basis beginning on June 30, 
2009: Provided further, That of the amounts provided, $4,000,000 shall 
be transferred to and merged with ``Government-Wide Policy'', for the 
Office of Federal High-Performance Green Buildings as authorized in the 
Energy Independence and Security Act of 2007 (Public Law 110-140).

        energy efficient federal motor vehicle fleet procurement

     For capital expenditures and necessary expenses of the General 
Services Administration's Motor Vehicle Acquisition and Motor Vehicle 
Leasing programs for the acquisition of motor vehicles, including plug-
in and alternative fuel vehicles, $600,000,000: Provided, That the 
amount set aside from this appropriation pursuant to section 1106 of 
this Act shall be 1 percent instead of the percentage specified in such 
section: Provided further, That none of these funds may be obligated 
until the Administrator of General Services submits to the Committees 
on Appropriations of the House of Representatives and the Senate, 
within 90 days after enactment of this Act, a plan for expenditure of 
the funds that details the current inventory of the Federal fleet owned 
by the General Services Administration, as well as other Federal 
agencies, and the strategy to expend these funds to replace a portion 
of the Federal fleet with the goal of substantially increasing energy 
efficiency over the current status, including increasing fuel 
efficiency and reducing emissions: Provided further, That the 
Administrator shall report to the Committees on the obligation of these 
funds on a quarterly basis beginning on June 30, 2009.

                       Subtitle B--Small Business

                     Small Business Administration

                     business loans program account

                     (including transfers of funds)

    For the cost of direct loans and loan guarantees authorized by 
sections 6202 through 6205 of this Act, $426,000,000: Provided, That 
such cost, including the cost of modifying such loans, shall be as 
defined in section 502 of the Congressional Budget Act of 1974. In 
addition, for administrative expenses to carry out the direct loan and 
loan guarantee programs authorized by this Act, $4,000,000, which may 
be transferred to and merged with the appropriations for Salaries and 
Expenses: Provided, That this sentence shall apply to this 
appropriation in lieu of the provisions of section 1106 of this Act.

                   GENERAL PROVISIONS, THIS SUBTITLE

SEC. 6201. ECONOMIC STIMULUS LENDING PROGRAM FOR SMALL BUSINESSES.

    (a) Purpose.--The purpose of this section is to permit the Small 
Business Administration to guarantee up to 95 percent of qualifying 
small business loans made by eligible lenders.
    (b) Definitions.--For purposes of this section:
            (1) The term ``Administrator'' means the Administrator of 
        the Small Business Administration.
            (2) The term ``qualifying small business loan'' means any 
        loan to a small business concern that would be eligible for a 
        loan guarantee under section 7(a) of the Small Business Act (15 
        U.S.C. 636) or title V of the Small Business Investment Act of 
        1958 (15 U.S.C. 695 and following).
            (3) The term ``small business concern'' has the same 
        meaning as provided by section 3 of the Small Business Act (15 
        U.S.C. 632).
    (c) Application.--In order to participate in the loan guarantee 
program under this section a lender shall submit an application to the 
Administrator for the guarantee of up to 95 percent of the principal 
amount of a qualifying small business loan. The Administrator shall 
approve or deny each such application within 5 business days after 
receipt thereof. The Administrator may not delegate to lenders the 
authority to approve or disapprove such applications.
    (d) Fees.--The Administrator may charge fees for guarantees issued 
under this section. Such fees shall not exceed the fees permitted for 
loan guarantees under section 7(a) of the Small Business Act (15 U.S.C. 
631 and following).
    (e) Interest Rates.--The Administrator may not guarantee under this 
section any loan that bears interest at a rate higher than 3 percent 
above the higher of either of the following as quoted in the Wall 
Street Journal on the first business day of the week in which such 
guarantee is issued:
            (1) The London interbank offered rate (LIBOR) for a 3-month 
        period.
            (2) The Prime Rate.
    (f) Qualified Borrowers.--
            (1) Aliens unlawfully present in the united states.--A loan 
        guarantee may not be made under this section for a loan made to 
        a concern if an individual who is an alien unlawfully present 
        in the United States--
                    (A) has an ownership interest in that concern; or
                    (B) has an ownership interest in another concern 
                that itself has an ownership interest in that concern.
            (2)  Firms in violation of immigration laws.--No loan 
        guarantee may be made under this section for a loan to any 
        entity found, based on a determination by the Secretary of 
        Homeland Security or the Attorney General to have engaged in a 
        pattern or practice of hiring, recruiting or referring for a 
        fee, for employment in the United States an alien knowing the 
        person is an unauthorized alien.
    (g) Criminal Background Checks.--Prior to the approval of any loan 
guarantee under this section, the Administrator may verify the 
applicant's criminal background, or lack thereof, through the best 
available means, including, if possible, use of the National Crime 
Information Center computer system at the Federal Bureau of 
Investigation.
    (h) Application of Other Law.--Nothing in this section shall be 
construed to exempt any activity of the Administrator under this 
section from the Federal Credit Reform Act of 1990 (title V of the 
Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 
and following).
    (i) Sunset.--Loan guarantees may not be issued under this section 
after the date 90 days after the date of establishment (as determined 
by the Administrator) of the economic recovery program under section 
6204.
    (j) Small Business Act Provisions.--The provisions of the Small 
Business Act applicable to loan guarantees under section 7 of that Act 
shall apply to loan guarantees under this section except as otherwise 
provided in this section.
    (k) Authorization.--There are authorized to be appropriated such 
sums as may be necessary to carry out this section.

SEC. 6202. ESTABLISHMENT OF SBA SECONDARY MARKET LENDING AUTHORITY.

     (a) Purpose.--The purpose of this section is to provide the Small 
Business Administration with the authority to establish a Secondary 
Market Lending Authority within the SBA to make loans to the 
systemically important SBA secondary market broker-dealers who operate 
the SBA secondary market.
    (b) Definitions.--For purposes of this section:
            (1) The term ``Administrator'' means the Administrator of 
        the SBA.
            (2) The term ``SBA'' means the Small Business 
        Administration.
            (3) The terms ``Secondary Market Lending Authority'' and 
        ``Authority'' mean the office established under subsection (c).
            (4) The term ``SBA secondary market'' means the market for 
        the purchase and sale of loans originated, underwritten, and 
        closed under the Small Business Act.
            (5) The term ``Systemically Important Secondary Market 
        Broker-Dealers'' mean those entities designated under 
        subsection (c)(1) as vital to the continued operation of the 
        SBA secondary market by reason of their purchase and sale of 
        the government guaranteed portion of loans, or pools of loans, 
        originated, underwritten, and closed under the Small Business 
        Act.
    (c) Responsibilities, Authorities, Organization, and Limitations.--
            (1) Designation of systemically important sba secondary 
        market broker-dealers.--The Administrator shall establish a 
        process to designate, in consultation with the Board of 
        Governors of the Federal Reserve and the Secretary of the 
        Treasury, Systemically Important Secondary Market Broker-
        Dealers.
            (2) Establishment of sba secondary market lending 
        authority.--
                    (A) Organization.--
                            (i) The Administrator shall establish 
                        within the SBA an office to provide loans to 
                        Systemically Important Secondary Market Broker-
                        dealers to be used for the purpose of financing 
                        the inventory of the government guaranteed 
                        portion of loans, originated, underwritten, and 
                        closed under the Small Business Act or pools of 
                        such loans.
                            (ii) The Administrator shall appoint a 
                        Director of the Authority who shall report to 
                        the Administrator.
                            (iii) The Administrator is authorized to 
                        hire such personnel as are necessary to operate 
                        the Authority.
                            (iv) The Administrator may contract such 
                        Authority operations as he determines necessary 
                        to qualified third-party companies or 
                        individuals.
                            (v) The Administrator is authorized to 
                        contract with private sector fiduciary and 
                        custodial agents as necessary to operate the 
                        Authority.
                    (B) Loans.--
                            (i) The Administrator shall establish by 
                        rule a process under which Systemically 
                        Important SBA Secondary Market Broker-Dealers 
                        designated under paragraph (1) may apply to the 
                        Administrator for loans under this section.
                            (ii) The rule under clause (i) shall 
                        provide a process for the Administrator to 
                        consider and make decisions regarding whether 
                        or not to extend a loan applied for under this 
                        section. Such rule shall include provisions to 
                        assure each of the following:
                                    (I) That loans made under this 
                                section are for the sole purpose of 
                                financing the inventory of the 
                                government guaranteed portion of loans, 
                                originated, underwritten, and closed 
                                under the Small Business Act or pools 
                                of such loans.
                                    (II) That loans made under this 
                                section are fully collateralized to the 
                                satisfaction of the Administrator.
                                    (III) That there is no limit to the 
                                frequency in which a borrower may 
                                borrow under this section unless the 
                                Administrator determines that doing so 
                                would create an undue risk of loss to 
                                the agency or the United States.
                                    (IV) That there is no limit on the 
                                size of a loan, subject to the 
                                discretion of the Administrator.
                            (iii) Interest on loans under this section 
                        shall not exceed the Federal Funds target rate 
                        as established by the Federal Reserve Board of 
                        Governors plus 25 basis points.
                            (iv) The rule under this section shall 
                        provide for such loan documents, legal 
                        covenants, collateral requirements and other 
                        required documentation as necessary to protect 
                        the interests of the agency, the United States, 
                        and the taxpayer.
                            (v) The Administrator shall establish 
                        custodial accounts to safeguard any collateral 
                        pledged to the SBA in connection with a loan 
                        under this section.
                            (vi) The Administrator shall establish a 
                        process to disburse and receive funds to and 
                        from borrowers under this section.
                    (C) Limitations on use of loan proceeds by 
                systemically important secondary market broker-
                dealers.--The Administrator shall ensure that borrowers 
                under this section are using funds provided under this 
                section only for the purpose specified in subparagraph 
                (B)(ii)(I). If the Administrator finds that such funds 
                were used for any other purpose, the Administrator 
                shall--
                            (i) require immediate repayment of 
                        outstanding loans;
                            (ii) prohibit the borrower, its affiliates, 
                        or any future corporate manifestation of the 
                        borrower from using the Authority; and
                            (iii) take any other actions the 
                        Administrator, in consultation with the 
                        Attorney General of the United States, deems 
                        appropriate.
    (d) Report to Congress.--The Administrator shall submit a report to 
Congress not later than the third business day of each month containing 
a statement of each of the following:
            (1) The aggregate loan amounts extended during the 
        preceding month under this section.
            (2) The aggregate loan amounts repaid under this section 
        during the proceeding month.
            (3) The aggregate loan amount outstanding under this 
        section.
            (4) The aggregate value of assets held as collateral under 
        this section.
            (5) The amount of any defaults or delinquencies on loans 
        made under this section.
            (6) The identity of any borrower found by the Administrator 
        to misuse funds made available under this section.
            (7) Any other information the Administrator deems necessary 
        to fully inform Congress of undue risk of financial loss to the 
        United States in connection with loans made under this section.
    (e) Duration.--The authority of this section shall remain in effect 
for a period of 2 years after the date of enactment of this section.
    (f) Funding.--Such sums as necessary are authorized to be 
appropriated to carry out the provisions of this section.
    (g) Budget Treatment.--Nothing in this section shall be construed 
to exempt any activity of the Administrator under this section from the 
Federal Credit Reform Act of 1990 (title V of the Congressional Budget 
and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
    (h) Emergency Rulemaking Authority.--The Administrator shall 
promulgate regulations under this section within 15 days after the date 
of enactment of enactment of this section. In promulgating these 
regulations, the Administrator the notice requirements of section 
553(b) of title 5 of the United States Code shall not apply.

SEC. 6203. ESTABLISHMENT OF SBA SECONDARY MARKET GUARANTEE AUTHORITY.

     (a) Purpose.--The purpose of this section is to provide the 
Administrator with the authority to establish the SBA Secondary Market 
Guarantee Authority within the SBA to provide a Federal guarantee for 
pools of first lien 504 loans that are to be sold to third-party 
investors.
    (b) Definitions.--For purposes of this section:
            (1) The term ``Administrator'' means the Administrator of 
        the Small Business Administration.
            (2) The term ``first lien position 504 loan'' means the 
        first mortgage position, non-federally guaranteed loans made by 
        private sector lenders made under title V of the Small Business 
        Investment Act.
    (c) Establishment of Authority.--
            (1) Organization.--
                    (A) The Administrator shall establish a Secondary 
                Market Guarantee Authority within the Small Business 
                Administration.
                    (B) The Administrator shall appoint a Director of 
                the Authority who shall report to the Administrator.
                    (C) The Administrator is authorized to hire such 
                personnel as are necessary to operate the Authority and 
                may contract such operations of the Authority as 
                necessary to qualified third-party companies or 
                individuals.
                    (D) The Administrator is authorized to contract 
                with private sector fiduciary and custodial agents as 
                necessary to operate the Authority.
            (2) Guarantee process.--
                    (A) The Administrator shall establish, by rule, a 
                process in which private sector entities may apply to 
                the Administration for a Federal guarantee on pools of 
                first lien position 504 loans that are to be sold to 
                third-party investors.
                    (B) The Administrator shall appoint a Director of 
                the Authority who shall report to the Administrator.
                    (C) The Administrator is authorized to hire such 
                personnel as are necessary to operate the Authority and 
                may contract such operations of the Authority as 
                necessary to qualified third-party companies or 
                individuals.
                    (D) The Administrator is authorized to contract 
                with private sector fiduciary and custodial agents as 
                necessary to operate the Authority.
            (3) Responsibilities.--
                    (A) The Administrator shall establish, by rule, a 
                process in which private sector entities may apply to 
                the SBA for a Federal guarantee on pools of first lien 
                position 504 loans that are to be sold to third-party 
                investors.
                    (B) The rule under this section shall provide for a 
                process for the Administrator to consider and make 
                decisions regarding whether to extend a Federal 
                guarantee referred to in clause (i). Such rule shall 
                also provide that:
                            (i) The seller of the pools purchasing a 
                        guarantee under this section retains not less 
                        than 5 percent of the dollar amount of the 
                        pools to be sold to third-party investors.
                            (ii) The seller of such pools shall absorb 
                        any and all losses resulting from a shortage or 
                        excess of monthly cash flows.
                            (iii) The Administrator shall receive a 
                        monthly fee of not more than 50 basis points on 
                        the outstanding balance of the dollar amount of 
                        the pools that are guaranteed.
                            (iv) The Administrator may guarantee not 
                        more than $3,000,000,0000 of pools under this 
                        authority.
                    (C) The Administrator shall establish documents, 
                legal covenants, and other required documentation to 
                protect the interests of the United States.
                    (D) The Administrator shall establish a process to 
                receive and disburse funds to entities under the 
                authority established in this section.
    (d) Limitations.--
            (1) The Administrator shall ensure that entities purchasing 
        a guarantee under this section are using such guarantee for the 
        purpose of selling 504 first lien position pools to third-party 
        investors.
            (2) If the Administrator finds that any such guarantee was 
        used for a purpose other than that specified in paragraph (1), 
        the Administrator shall--
                    (A) terminate such guarantee immediately,
                    (B) prohibit the purchaser of the guarantee or its 
                affiliates (within the meaning of the regulations under 
                13 CFR 121.103) from using the authority of this 
                section in the future; and
                    (C) take any other actions the Administrator, in 
                consultation with the Attorney General of the United 
                States deems appropriate.
    (e) Oversight.--The Administrator shall submit a report to Congress 
not later than the third business day of each month setting forth each 
of the following:
            (1) The aggregate amount of guarantees extended under this 
        section during the proceeding month.
            (2) The aggregate amount of guarantees outstanding.
            (3) Defaults and payments on defaults made under this 
        section.
            (4) The identity of each purchaser of a guarantee found by 
        the Administrator to have misused guarantees under this 
        section.
            (5) Any other information the Administrator deems necessary 
        to fully inform Congress of undue risk to the United States 
        associated with the issuance of guarantees under this section.
    (f) Duration of Program.--The authority of this section shall 
terminate on the date 2 years after the date of enactment of this 
section.
    (g) Funding.--Such sums as necessary are authorized to be 
appropriated to carry out the provisions of this section.
    (h) Budget Treatment.--Nothing in this section shall be construed 
to exempt any activity of the Administrator under this section from the 
Federal Credit Reform Act of 1990 (title V of the Congressional Budget 
and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
    (i) Emergency Rulemaking Authority.--The Administrator shall issue 
regulations under this section within 15 days after the date of 
enactment of this section. The notice requirements of section 553(b) of 
Title 5, United States Code shall not apply to the promulgation of such 
regulations.

SEC. 6204. ECONOMIC RECOVERY PROGRAM.

    (a) Purpose.--The purpose of this section is to establish a new 
lending and refinancing authority within the Small Business 
Administration.
    (b) Definitions.--For purposes of this section:
            (1) The term ``Administrator'' means the Administrator of 
        the Small Business Administration.
            (2) The term ``small business concern'' has the same 
        meaning as provided by section 3 of the Small Business Act (15 
        U.S.C. 632).
    (c) Refinancing Authority.--
            (1) In general.--Upon application from a lender (and with 
        consent of the borrower), the Administrator may refinance 
        existing non-Small Business Administration or Small Business 
        Administration loans (including loans under sections 7(a) and 
        504 of the Small Business Act) made to small business concerns.
            (2) Eligible loans.--In order to be eligible for 
        refinancing under this section--
                    (A) the amount of the loan refinanced may not 
                exceed $10,000,000 and a first lien must be conveyed to 
                the Administrator;
                    (B) the lender shall offer to accept from the 
                Administrator as full repayment of the loan an amount 
                equal to less than 100 percent but more than 85 percent 
                of the remaining balance of the principal of the loan; 
                and
                    (C) the loan to be refinanced was made before the 
                date of enactment of this Act and for a purpose that 
                would have been eligible for a loan under any Small 
                Business Administration lending program.
            (3) Terms.--The term of the refinancing by the 
        Administrator under this section shall not be less than 
        remaining term on the loan that is refinanced but shall not 
        exceed a term of 20 years. The rate of interest on the loan 
        refinanced under this section shall be fixed by the 
        Administrator at a level that the Administrator determines will 
        result in manageable monthly payments for the borrower.
            (4) Limit.--The Administrator may not refinance amounts 
        under this section that are greater than the amount the lender 
        agrees to accept from the Administrator as full repayment of 
        the loan as provided in paragraph (2)(B).
    (d) Underwriting and Other Loan Services.--
            (1) In general.--The Administrator is authorized to engage 
        in underwriting, loan closing, funding, and servicing of loans 
        made to small business concerns and to guarantee loans made by 
        other entities to small business concerns.
            (2) Application process.--The Administrator shall by rule 
        establish a process in which small business concerns may submit 
        applications to the Administrator for the purposes of securing 
        a loan under this subsection. The Administrator shall, at a 
        minimum, collect all information necessary to determine the 
        creditworthiness and repayment ability of the borrower.
            (3) Participation of lenders.--
                    (A) The Administrator shall by rule establish a 
                process in which the Administrator makes available loan 
                applications and all accompanying information to 
                lenders for the purpose of such lenders originating, 
                underwriting, closing, and servicing such loans.
                    (B) Lenders are eligible to receive loan 
                applications and accompanying information under this 
                paragraph if they participate in the programs 
                established in section 7(a) of the Small Business Act 
                (15 U.S.C. 636) or title V of the Small Business 
                Investment Act (15 U.S.C. 695).
                    (C) The Administrator shall first make available 
                such loan applications and accompanying information to 
                lenders within 100 miles of a loan applicant's 
                principal office.
                    (D) If a lender described in subparagraph (C) does 
                not agree to originate, underwrite, close, and service 
                such loans within 5 business days of receiving the loan 
                applications, the Administrator shall subsequently make 
                available such loan applications and accompanying 
                information to lenders in the Preferred Lenders Program 
                under section 7(a)(2)(C)(ii) of the Small Business Act 
                (15 U.S.C. 636).
                    (E) If a lender described in subparagraph (C) or 
                (D) does not agree to originate, underwrite, close, and 
                service such loans within 10 business days of receiving 
                the loan applications, the Administrator may originate, 
                underwrite, close, and service such loans as described 
                in paragraph (1) of this subsection.
            (4) Asset sales.--The Administrator shall offer to sell 
        loans made or refinanced by the Administrator under this 
        section. Such sales shall be made through semi-annual public 
        solicitation (in the Federal Register and in other media) of 
        offers to purchase. The Administrator may contract with vendors 
        for due diligence, asset valuation, and other services related 
        to such sales. The Administrator may not sell any loan under 
        this section for less than 90 percent of the net present value 
        of the loan, as determined and certified by a qualified third-
        party.
            (5) Loans not sold.--The Administrator shall maintain and 
        service loans made by the Administrator under this section that 
        are not sold through the asset sales under this section.
    (e) Duration.-- The authority of this section shall terminate on 
the date two years after the date on which the program under this 
section becomes operational (as determined by the Administrator).
    (f) Application of Other Law.--Nothing in this section shall be 
construed to exempt any activity of the Administrator under this 
section from the Federal Credit Reform Act of 1990 (title V of the 
Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 
and following).
    (g) Qualified Loans.--
            (1) Aliens unlawfully present in the united states.--A loan 
        to any concern shall not be subject to this section if an 
        individual who is an alien unlawfully present in the United 
        States--
                    (A) has an ownership interest in that concern; or
                    (B) has an ownership interest in another concern 
                that itself has an ownership interest in that concern.
            (2)  Firms in violation of immigration laws.--No loan shall 
        be subject to this section if the borrower is an entity found, 
        based on a determination by the Secretary of Homeland Security 
        or the Attorney General to have engaged in a pattern or 
        practice of hiring, recruiting or referring for a fee, for 
        employment in the United States an alien knowing the person is 
        an unauthorized alien.
    (h) Reports.--The Administrator shall submit a report to Congress 
semi-annually setting forth the aggregate amount of loans and 
geographic dispersion of such loans made, underwritten, closed, funded, 
serviced, sold, guaranteed, or held by the Administrator under the 
authority of this section. Such report shall also set forth information 
concerning loan defaults, prepayments, and recoveries related to loans 
,made under the authority of this section.
    (i) Authorization.--There are authorized to be appropriated such 
sums as may be necessary to carry out this section.

SEC. 6205. STIMULUS FOR COMMUNITY DEVELOPMENT LENDING.

    (a) Refinancing Under the Local Development Business Loan 
Program.--Section 502 of the Small Business Investment Act of 1958 (15 
U.S.C. 696) is amended by adding at the end the following:
            ``(7) Permissible debt refinancing.--
                    ``(A) In general.--Any financing approved under 
                this title may include a limited amount of debt 
                refinancing.
                    ``(B) Expansions.--If the project involves 
                expansion of a small business concern which has 
                existing indebtedness collateralized by fixed assets, 
                any amount of existing indebtedness that does not 
                exceed \1/2\ of the project cost of the expansion may 
                be refinanced and added to the expansion cost, if--
                            ``(i) the proceeds of the indebtedness were 
                        used to acquire land, including a building 
                        situated thereon, to construct a building 
                        thereon, or to purchase equipment;
                            ``(ii) the borrower has been current on all 
                        payments due on the existing debt for not less 
                        than 1 year preceding the date of refinancing; 
                        and
                            ``(iii) the financing under section 504 
                        will provide better terms or rate of interest 
                        than exists on the debt at the time of 
                        refinancing.''.
    (b) Job Creation Goals.--Section 501(e)(1) and section 501(e)(2) of 
the Small Business Investment Act (15 U.S.C. 695) are each amended by 
striking ``$50,000'' and inserting ``$65,000''.

SEC. 6206. INCREASING SMALL BUSINESS INVESTMENT.

    (a) Simplified Maximum Leverage Limits.--Section 303(b) of the 
Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended--
            (1) by striking so much of paragraph (2) as precedes 
        subparagraphs (C) and (D) and inserting the following:
            ``(2) Maximum leverage.--
                    ``(A) In general.--The maximum amount of 
                outstanding leverage made available to any one company 
                licensed under section 301(c) of this Act may not 
                exceed the lesser of--
                            ``(i) 300 percent of such company's private 
                        capital; or
                            ``(ii) $150,000,000.
                    ``(B) Multiple licenses under common control.--The 
                maximum amount of outstanding leverage made available 
                to two or more companies licensed under section 301(c) 
                of this Act that are commonly controlled (as determined 
                by the Administrator) and not under capital impairment 
                may not exceed $225,000,000.''; and
            (2) by striking paragraph (4).
    (b) Simplified Aggregate Investment Limitations.--Section 306(a) of 
the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is amended 
to read as follows:
    ``(a) Percentage Limitation on Private Capital.--If any small 
business investment company has obtained financing from the 
Administrator and such financing remains outstanding, the aggregate 
amount of securities acquired and for which commitments may be issued 
by such company under the provisions of this title for any single 
enterprise shall not, without the approval of the Administrator, exceed 
10 percent of the sum of--
            ``(1) the private capital of such company; and
            ``(2) the total amount of leverage projected by the company 
        in the company's business plan that was approved by the 
        Administrator at the time of the grant of the company's 
        license.''.

SEC. 6207. GAO REPORT.

    (a) Report.--Not later than 30 days after the enactment of this 
Act, the Comptroller General of the United States shall report to the 
Congress on the actions of the Administrator in implementing the 
authority established in sections 6201 through 6206 of this Act.
    (b) Included Item.--The report under this section shall include a 
summary of the activity of the Administrator under this section and an 
analysis of whether he is accomplishing the purpose of increasing 
liquidity in the secondary market for Small Business Administration 
loans.

                      TITLE VII--HOMELAND SECURITY

                    DEPARTMENT OF HOMELAND SECURITY

                   U.S. Customs and Border Protection

                         salaries and expenses

     For an additional amount for ``Salaries and Expenses'', 
$100,000,000, for non-intrusive detection technology to be deployed at 
sea ports of entry.

                              construction

    For an additional amount for ``Construction'', $150,000,000, to 
repair and construct inspection facilities at land border ports of 
entry.

                 Transportation Security Administration

                           aviation security

     For an additional amount for ``Aviation Security'', $500,000,000, 
for the purchase and installation of explosive detection systems and 
emerging checkpoint technologies: Provided, That the Assistant 
Secretary of Homeland Security (Transportation Security Administration) 
shall prioritize the award of these funds to accelerate the 
installations at locations with completed design plans and to 
expeditiously award new letters of intent.

                              Coast Guard

                         alteration of bridges

     For an additional amount for ``Alteration of Bridges'', 
$150,000,000, for alteration or removal of obstructive bridges, as 
authorized by section 6 of the Truman-Hobbs Act (33 U.S.C. 516): 
Provided, That the Coast Guard shall award these funds to those bridges 
that are ready to proceed to construction.

                  Federal Emergency Management Agency

                       emergency food and shelter

    For an additional amount for ``Emergency Food and Shelter'', 
$200,000,000, to carry out the emergency food and shelter program 
pursuant to title III of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11331 et seq.): Provided, That for the purposes of this 
appropriation, the redistribution required by section 1104(b) shall be 
carried out by the Federal Emergency Management Agency and the National 
Board, who may reallocate and obligate any funds that are unclaimed or 
returned to the program: Provided further, That the amount set aside 
from this appropriation pursuant to section 1106 of this Act shall be 
3.5 percent instead of the percentage specified in such section.

                     GENERAL PROVISIONS, THIS TITLE

SEC. 7001. EXTENSION OF PROGRAMS.

    Section 401(b) of the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended by striking 
``11-year period'' and inserting ``16-year period''.

SEC. 7002. PROTECTION OF SOCIAL SECURITY ADMINISTRATION PROGRAMS.

    (a) Funding Under Agreement.--Effective for fiscal years beginning 
on or after October 1, 2008, the Commissioner of Social Security and 
the Secretary of Homeland Security shall enter into and maintain an 
agreement which shall--
            (1) provide funds to the Commissioner for the full costs of 
        the responsibilities of the Commissioner under section 404 of 
        the Illegal Immigration Reform and Immigrant Responsibility Act 
        of 1996 (8 U.S.C. 1324a note), including (but not limited to)--
                    (A) acquiring, installing, and maintaining 
                technological equipment and systems necessary for the 
                fulfillment of the responsibilities of the Commissioner 
                under such section 404, but only that portion of such 
                costs that are attributable exclusively to such 
                responsibilities; and
                    (B) responding to individuals who contest a 
                tentative nonconfirmation provided by the basic pilot 
                confirmation system established under such section;
            (2) provide such funds quarterly in advance of the 
        applicable quarter based on estimating methodology agreed to by 
        the Commissioner and the Secretary (except in such instances 
        where the delayed enactment of an annual appropriation may 
        preclude such quarterly payments); and
            (3) require an annual accounting and reconciliation of the 
        actual costs incurred and the funds provided under the 
        agreement, which shall be reviewed by the Office of Inspector 
        General of the Social Security Administration and the 
        Department of Homeland Security.
    (b) Continuation of Employment Verification in Absence of Timely 
Agreement.--In any case in which the agreement required under 
subsection (a) for any fiscal year beginning on or after October 1, 
2008, has not been reached as of October 1 of such fiscal year, the 
latest agreement between the Commissioner and the Secretary of Homeland 
Security providing for funding to cover the costs of the 
responsibilities of the Commissioner under section 404 of the Illegal 
Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 
1324a note) shall be deemed in effect on an interim basis for such 
fiscal year until such time as an agreement required under subsection 
(a) is subsequently reached, except that the terms of such interim 
agreement shall be modified by the Director of the Office of Management 
and Budget to adjust for inflation and any increase or decrease in the 
volume of requests under the basic pilot confirmation system. In any 
case in which an interim agreement applies for any fiscal year under 
this subsection, the Commissioner and the Secretary shall, not later 
than October 1 of such fiscal year, notify the Committee on Ways and 
Means, the Committee on the Judiciary, and the Committee on 
Appropriations of the House of Representatives and the Committee on 
Finance, the Committee on the Judiciary, and the Committee on 
Appropriations of the Senate of the failure to reach the agreement 
required under subsection (a) for such fiscal year. Until such time as 
the agreement required under subsection (a) has been reached for such 
fiscal year, the Commissioner and the Secretary shall, not later than 
the end of each 90-day period after October 1 of such fiscal year, 
notify such Committees of the status of negotiations between the 
Commissioner and the Secretary in order to reach such an agreement.

SEC. 7003. GAO STUDY OF BASIC PILOT CONFIRMATION SYSTEM.

    (a) In General.--As soon as practicable after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall conduct a study regarding erroneous tentative nonconfirmations 
under the basic pilot confirmation system established under section 
404(a) of the Illegal Immigration Reform and Immigrant Responsibility 
Act of 1996 (8 U.S.C. 1324a note).
    (b) Matters To Be Studied.--In the study required under subsection 
(a), the Comptroller General shall determine and analyze--
            (1) the causes of erroneous tentative nonconfirmations 
        under the basic pilot confirmation system;
            (2) the processes by which such erroneous tentative 
        nonconfirmations are remedied; and
            (3) the effect of such erroneous tentative nonconfirmations 
        on individuals, employers, and Federal agencies.
    (c) Report.--Not later than 2 years after the date of the enactment 
of this Act, the Comptroller General shall submit the results of the 
study required under subsection (a) to the Committee on Ways and Means 
and the Committee on the Judiciary of the House of Representatives and 
the Committee on Finance and the Committee on the Judiciary of the 
Senate.

SEC. 7004. GAO STUDY OF EFFECTS OF BASIC PILOT PROGRAM ON SMALL 
              ENTITIES.

    (a) In General.--Not later than 2 years after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committees on the Judiciary of the United States 
House of Representatives and the Senate a report containing the 
Comptroller General's analysis of the effects of the basic pilot 
program described in section 403(a) of the Illegal Immigration Reform 
and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) on small 
entities (as defined in section 601 of title 5, United States Code). 
The report shall detail--
            (1) the costs of compliance with such program on small 
        entities;
            (2) a description and an estimate of the number of small 
        entities enrolled and participating in such program or an 
        explanation of why no such estimate is available;
            (3) the projected reporting, recordkeeping and other 
        compliance requirements of such program on small entities;
            (4) factors that impact small entities' enrollment and 
        participation in such program, including access to appropriate 
        technology, geography, entity size, and class of entity; and
            (5) the steps, if any, the Secretary of Homeland Security 
        has taken to minimize the economic impact of participating in 
        such program on small entities.
    (b) Direct and Indirect Effects.--The report shall cover, and treat 
separately, direct effects (such as wages, time, and fees spent on 
compliance) and indirect effects (such as the effect on cash flow, 
sales, and competitiveness).
    (c) Specific Contents.--The report shall provide specific and 
separate details with respect to--
            (1) small businesses (as defined in section 601 of title 5, 
        United States Code) with fewer than 50 employees; and
            (2) small entities operating in States that have mandated 
        use of the basic pilot program.

                  TITLE VIII--INTERIOR AND ENVIRONMENT

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management

                              construction

                     (including transfers of funds)

    For an additional amount for ``Construction'', $325,000,000, for 
priority road, bridge, and trail repair or decommissioning, critical 
deferred maintenance projects, facilities construction and renovation, 
hazardous fuels reduction, and remediation of abandoned mine or well 
sites: Provided, That funds may be transferred to other appropriate 
accounts of the Bureau of Land management: Provided further, That the 
amount set aside from this appropriation pursuant to section 1106 of 
this Act shall be not more than 5 percent instead of the percentage 
specified in such section.

                United States Fish and Wildlife Service

                              construction

                     (including transfer of funds)

    For an additional amount for ``Construction'', $300,000,000, for 
priority road and bridge repair and replacement, and critical deferred 
maintenance and improvement projects on National Wildlife Refuges, 
National Fish Hatcheries, and other Service properties: Provided, That 
funds may be transferred to ``Resource Management'': Provided further, 
That the amount set aside from this appropriation pursuant to section 
1106 of this Act shall be not more than 5 percent instead of the 
percentage specified in such section.

                         National Park Service

                              construction

                     (including transfer of funds)

    For an additional amount for ``Construction'', $1,700,000,000, for 
projects to address critical deferred maintenance needs within the 
National Park System, including roads, bridges and trails, and for 
other critical infrastructure projects: Provided, That funds may be 
transferred to ``Operation of the National Park System'': Provided 
further, That $200,000,000 of these funds shall be for projects related 
to the preservation and repair of historical and cultural resources 
within the National Park System: Provided further, That the amount set 
aside from this appropriation pursuant to section 1106 of this Act 
shall be not more than 5 percent instead of the percentage specified in 
such section.

                   national mall revitalization fund

    For construction, improvements, repair, or replacement of 
facilities related to the revitalization of National Park Service 
assets on the National Mall in Washington, DC, $200,000,000, of which 
$100,000,000 shall only be made available to the extent that funds are 
matched by non-Federal contributions: Provided, That the amount set 
aside from this appropriation pursuant to section 1106 of this Act 
shall be not more than 5 percent instead of the percentage specified in 
such section.

                          centennial challenge

    To carry out provisions of section 814(g) of Public Law 104-333 
relating to challenge cost share agreements, $100,000,000, for National 
Park Service Centennial Challenge signature projects and programs: 
Provided, That not less than 50 percent of the total cost of each 
project or program is derived from non-Federal sources in the form of 
donated cash, assets, in-kind services, or a pledge of donation 
guaranteed by an irrevocable letter of credit: Provided further, That 
the amount set aside from this appropriation pursuant to section 1106 
of this Act shall be not more than 5 percent instead of the percentage 
specified in such section.

                    United States Geological Survey

                 surveys, investigations, and research

    For an additional amount for ``Surveys, Investigations, and 
Research'', $200,000,000, for repair and restoration of facilities; 
equipment replacement and upgrades including stream gages, and seismic 
and volcano monitoring systems; national map activities; and other 
critical deferred maintenance and improvement projects: Provided, That 
the amount set aside from this appropriation pursuant to section 1106 
of this Act shall be not more than 5 percent instead of the percentage 
specified in such section.

                        Bureau of Indian Affairs

                              construction

                     (including transfer of funds)

    For an additional amount for ``Construction'', $500,000,000, for 
priority repair and replacement of schools, detention centers, roads, 
bridges, employee housing, and critical deferred maintenance projects: 
Provided, That not less than $250,000,000 shall be used for new and 
replacement schools and detention centers: Provided further, That funds 
may be transferred to ``Operation of Indian Programs'': Provided 
further, That the amount set aside from this appropriation pursuant to 
section 1106 of this Act shall be not more than 5 percent instead of 
the percentage specified in such section.

                    ENVIRONMENTAL PROTECTION AGENCY

                     Hazardous Substance Superfund

    For an additional amount for ``Hazardous Substance Superfund'', 
$800,000,000, which shall be used for the Superfund Remedial program: 
Provided, That amounts available by law from this appropriation for 
management and administration shall take the place of the set-aside 
under section 1106 of this Act.

          Leaking Underground Storage Tank Trust Fund Program

    For an additional amount for ``Leaking Underground Storage Tank 
Trust Fund Program'', to carry out leaking underground storage tank 
cleanup activities authorized by subtitle I of the Solid Waste Disposal 
Act, $200,000,000, which shall be used to carry out leaking underground 
storage tank cleanup activities authorized by section 9003(h) of the 
Solid Waste Disposal Act, except that such funds shall not be subject 
to the State matching requirements in section 9003(h)(7)(B):  Provided, 
That amounts available by law from this appropriation for management 
and administration shall take the place of the set-aside under section 
1106 of this Act.

                   State and Tribal Assistance Grants

    For an additional amount for ``State and Tribal Assistance 
Grants'', $8,400,000,000, which shall be used as follows:
            (1) $6,000,000,000 shall be for capitalization grants for 
        the Clean Water State Revolving Funds under title VI of the 
        Federal Water Pollution Control Act (33 U.S.C. 1381 et seq.), 
        except that such funds shall not be subject to the State 
        matching requirements in paragraphs (2) and (3) of section 
        602(b) of such Act or to the Federal cost share limitations in 
        section 202 of such Act: Provided, That the amount set aside 
        from this appropriation pursuant to section 1106 of this Act 
        shall be not more than 2 percent instead of the percentage 
        specified in such section: Provided further, That, 
        notwithstanding the limitation on amounts specified in section 
        518(c) of the Federal Water Pollution Control Act, up to a 
        total of 1.5 percent of such funds may be reserved by the 
        Administrator of the Environmental Protection Agency for grants 
        under section 518(c) of such Act: Provided further, That the 
        requirements of section 513 of such Act shall apply to the 
        construction of treatment works carried out in whole or in part 
        with assistance made available under this heading by a Clean 
        Water State Revolving Fund under title VI of such Act, or with 
        assistance made available under section 205(m) of such Act, or 
        both: Provided further, That, notwithstanding the requirements 
        of section 603(d) of such Act, each State shall use 50 percent 
        of the amount of the capitalization grant received by the State 
        under title VI of such Act to provide assistance, in the form 
        of additional subsidization, including forgiveness of 
        principal, negative interest loans, and grants, to 
        municipalities (as defined in section 502 of such Act) for 
        projects that are included on the State's priority list 
        established under section 603(g) of such Act, of which 80 
        percent shall be for projects to benefit municipalities that 
        meet affordability criteria as determined by the Governor of 
        the State and 20 percent shall be for projects to address 
        water-efficiency goals, address energy-efficiency goals, 
        mitigate stormwater runoff, or encourage environmentally 
        sensitive project planning, design, and construction, to the 
        extent that there are sufficient project applications eligible 
        for such assistance.
            (2) $2,000,000,000 shall be for capitalization grants for 
        the Drinking Water State Revolving Funds under section 1452 of 
        the Safe Drinking Water Act (42 U.S.C. 300j-12), except that 
        such funds shall not be subject to the State matching 
        requirements of section 1452(e) of such Act: Provided, That the 
        amount set aside from this appropriation pursuant to section 
        1106 of this Act shall be not more than 2 percent instead of 
        the percentage specified in such section: Provided further, 
        That section 1452(k) of the Safe Drinking Water Act shall not 
        apply to such funds: Provided further, That the requirements of 
        section 1450(e) of such Act (42 U.S.C. 300j-9(e)) shall apply 
        to the construction carried out in whole or part with 
        assistance made available under this heading by a Drinking 
        Water State Revolving fund under section 1452 of such Act: 
        Provided further, That, notwithstanding the requirements of 
        section 1452(a)(2) of such Act, each State shall use 50 percent 
        of the amount of the capitalization grant received by the State 
        under section 1452 of such Act to provide assistance, in the 
        form of additional subsidization, including forgiveness of 
        principal, negative interest loans, and grants, to 
        municipalities (as defined in section 1401 of such Act) for 
        projects that are included on the State's priority list 
        established under section 1452(b)(3) of such Act.
            (3) $300,000,000 shall be for grants under title VII, 
        Subtitle G of the Energy Policy Act of 2005:  Provided, That 
        the amount set aside from this appropriation pursuant to 
        section 1106 of this Act shall be not more than 3 percent 
        instead of the percentage specified in such section.
            (4) $100,000,000 shall be to carry out section 104(k) of 
        the Comprehensive Environmental Response, Compensation, and 
        Liability Act of 1980:  Provided, That the amount set aside 
        from this appropriation pursuant to section 1106 of this Act 
        shall be not more than 3 percent instead of the percentage 
        specified in such section.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service

                  capital improvement and maintenance

                     (including transfer of funds)

    For an additional amount for ``Capital Improvement and 
Maintenance'', $650,000,000, for reconstruction, capital improvement, 
decommissioning, and maintenance of forest roads, bridges and trails; 
alternative energy technologies, energy efficiency enhancements and 
deferred maintenance at Federal facilities; and for remediation of 
abandoned mine sites, removal of fish passage barriers, and other 
critical habitat, forest improvement and watershed enhancement projects 
on Federal lands and waters: Provided, That funds may be transferred to 
``National Forest System'': Provided further, That the amount set aside 
from this appropriation pursuant to section 1106 of this Act shall be 
not more than 5 percent instead of the percentage specified in such 
section.

                        wildland fire management

                     (including transfers of funds)

    For an additional amount for ``Wildland Fire Management'', 
$850,000,000, of which $300,000,000 is for hazardous fuels reduction, 
forest health, wood to energy grants and rehabilitation and restoration 
activities on Federal lands, and of which $550,000,000 is for State 
fire assistance hazardous fuels projects, volunteer fire assistance, 
cooperative forest health projects, city forest enhancements, and wood 
to energy grants on State and private lands: Provided, That amounts in 
this paragraph may be transferred to ``State and Private Forestry'' and 
``National Forest System'': Provided further, That the amount set aside 
from this appropriation pursuant to section 1106 of this Act shall be 
not more than 5 percent instead of the percentage specified in such 
section.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                         Indian Health Service

                        indian health facilities

    For an additional amount for ``Indian Health Facilities'', 
$550,000,000, for priority health care facilities construction projects 
and deferred maintenance, and the purchase of equipment and related 
services, including but not limited to health information technology: 
Provided, That notwithstanding any other provision of law, the amounts 
available under this paragraph shall be allocated at the discretion of 
the Director of the Indian Health Service: Provided further, That the 
amount set aside from this appropriation pursuant to section 1106 of 
this Act shall be not more than 5 percent instead of the percentage 
specified in such section.

                         OTHER RELATED AGENCIES

                        Smithsonian Institution

                           facilities capital

                     (including transfer of funds)

    For an additional amount for ``Facilities Capital'', $150,000,000, 
for deferred maintenance projects, and for repair, revitalization, and 
alteration of facilities owned or occupied by the Smithsonian 
Institution, by contract or otherwise, as authorized by section 2 of 
the Act of August 22, 1949 (63 Stat. 623): Provided, That funds may be 
transferred to ``Salaries and Expenses'': Provided further, That the 
amount set aside from this appropriation pursuant to section 1106 of 
this Act shall be not more than 5 percent instead of the percentage 
specified in such section.

           National Foundation on the Arts and the Humanities

                    National Endowment for the Arts

                       grants and administration

    For an additional amount for ``Grants and Administration'', 
$50,000,000, to be distributed in direct grants to fund arts projects 
and activities which preserve jobs in the non-profit arts sector 
threatened by declines in philanthropic and other support during the 
current economic downturn: Provided, That 40 percent of such funds 
shall be distributed to State arts agencies and regional arts 
organizations in a manner similar to the agency's current practice and 
60 percent of such funds shall be for competitively selected arts 
projects and activities according to sections 2 and 5(c) of the 
National Foundation on the Arts and Humanities Act of 1965 (20 U.S.C. 
951, 954(c)): Provided further, That matching requirements under 
section 5(e) of such Act shall be waived: Provided further, That the 
amount set aside from this appropriation pursuant to section 1106 of 
this Act shall be not more than 5 percent instead of the percentage 
specified in such section.

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

                           Subtitle A--Labor

                          DEPARTMENT OF LABOR

                 Employment and Training Administration

                    training and employment services

    For an additional amount for ``Training and Employment Services'' 
for activities under the Workforce Investment Act of 1998 (``WIA''), 
$4,000,000,000, which shall be available for obligation on the date of 
enactment of this Act, as follows:
            (1) $500,000,000 for grants to the States for adult 
        employment and training activities;
            (2) $1,200,000,000 for grants to the States for youth 
        activities, including summer jobs for youth: Provided, That the 
        work readiness performance indicator described in section 
        136(b)(2)(A)(ii)(I) of the WIA shall be the only measure of 
        performance used to assess the effectiveness of summer jobs for 
        youth provided with such funds: Provided further, That with 
        respect to the youth activities provided with such funds, 
        section 101(13)(A) of the WIA shall be applied by substituting 
        ``age 24'' for ``age 21'': Provided further, That no portion of 
        the additional funds provided herein shall be reserved to carry 
        out section 127(b)(1)(A) of the WIA: Provided further, That for 
        purposes of section 127(b)(1)(C)(iv) of the WIA, such funds 
        shall be allotted as if the total amount of funding available 
        for youth activities in the fiscal year does not exceed 
        $1,000,000,000;
            (3) $1,000,000,000 for grants to the States for dislocated 
        worker employment and training activities;
            (4) $500,000,000 for the dislocated workers assistance 
        national reserve to remain available for Federal obligation 
        through June 30, 2010: Provided, That such funds shall be made 
        available for grants only to eligible entities that serve areas 
        of high unemployment or high poverty and only for the purposes 
        described in subsection 173(a)(1) of the WIA: Provided further, 
        That the Secretary of Labor shall ensure that applicants for 
        such funds demonstrate how income support, child care, and 
        other supportive services necessary for an individual's 
        participation in job training will be provided;
            (5) $50,000,000 for YouthBuild activities, which shall 
        remain available for Federal obligation through June 30, 2010; 
        and
            (6) $750,000,000 for a program of competitive grants for 
        worker training and placement in high growth and emerging 
        industry sectors: Provided, That $500,000,000 shall be for 
        research, labor exchange and job training projects that prepare 
        workers for careers in the energy efficiency and renewable 
        energy industries specified in section 171(e)(1)(B)(ii) of the 
        WIA (as amended by the Green Jobs Act of 2007): Provided 
        further, That in awarding grants from those funds not 
        designated in the preceding proviso, the Secretary of Labor 
        shall give priority to projects that prepare workers for 
        careers in the health care sector: Provided further, That the 
        provisions of section 1103 of this Act shall not apply to this 
        appropriation:
Provided, That the additional funds provided to States under this 
heading are not subject to section 191(a) of the WIA: Provided further, 
That notwithstanding section 1106 of this Act, there shall be no amount 
set aside from the appropriations made in subsections (1) through (3) 
under this heading and the amount set aside for subsections (4) through 
(6) shall be up to 1 percent instead of the percentage specified in 
such section.

            community service employment for older americans

     For an additional amount for ``Community Service Employment for 
Older Americans'' to carry out title V of the Older Americans Act of 
1965, $120,000,000, which shall be available for obligation on the date 
of enactment of this Act: Provided, That funds shall be allotted within 
30 days of such enactment to current grantees in proportion to their 
allotment in program year 2008.

     state unemployment insurance and employment service operations

    For an additional amount for ``State Unemployment Insurance and 
Employment Service Operations'' for grants to the States in accordance 
with section 6 of the Wagner-Peyser Act, $500,000,000, which may be 
expended from the Employment Security Administration Account in the 
Unemployment Trust Fund, and which shall be available for obligation on 
the date of enactment of this Act: Provided, That such funds shall 
remain available to the States through September 30, 2010: Provided 
further, That, with respect to such funds, section 6(b)(1) of such Act 
shall be applied by substituting ``one-third'' for ``two-thirds'' in 
subparagraph (A), with the remaining one-third of the sums to be 
allotted in accordance with section 132(b)(2)(B)(ii)(III) of the 
Workforce Investment Act of 1998: Provided further, That not less than 
$250,000,000 of the amount provided under this heading shall be used by 
States for reemployment services for unemployment insurance claimants 
(including the integrated Employment Service and Unemployment Insurance 
information technology required to identify and serve the needs of such 
claimants): Provided further, That the Secretary of Labor shall 
establish planning and reporting procedures necessary to provide 
oversight of funds used for reemployment services.

                        Departmental Management

                         salaries and expenses

                     (including transfer of funds)

    For an additional amount for ``Departmental Management'', 
$80,000,000, for the enforcement of worker protection laws and 
regulations, oversight, and coordination activities related to the 
infrastructure and unemployment insurance investments in this Act: 
Provided, That the Secretary of Labor may transfer such sums as 
necessary to ``Employment and Standards Administration'', 
``Occupational Safety and Health Administration'', and ``Employment and 
Training Administration--Program Administration'' for enforcement, 
oversight, and coordination activities: Provided further, That the 
provisions of section 1106 of this Act shall not apply to this 
appropriation.

                          office of job corps

    For an additional amount for ``Office of Job Corps'', $300,000,000, 
for construction, rehabilitation and acquisition of Job Corps Centers, 
which shall be available upon the date of enactment of this Act and 
remain available for obligation through June 30, 2010: Provided, That 
section 1552(a) of title 31, United States Code shall not apply to up 
to 30 percent of such funds, if such funds are used for a multi-year 
lease agreement that will result in construction activities that can 
commence within 120 days of enactment of this Act: Provided further, 
That notwithstanding section 3324(a) of title 31, United States Code, 
the funds referred to in the preceding proviso may be used for advance, 
progress, and other payments: Provided further, That the Secretary of 
Labor may transfer up to 15 percent of such funds to meet the 
operational needs of such centers, which may include the provision of 
additional training for careers in the energy efficiency and renewable 
energy industries: Provided further, That priority should be given to 
activities that can commence promptly following enactment and to those 
projects that will create the greatest impact on the energy efficiency 
of Job Corps facilities: Provided further, That the Secretary shall 
provide to the Committees on Appropriations of the House of 
Representatives and the Senate a report on the actual obligations, 
expenditures, and unobligated balances for each activity funded under 
this heading not later than September 30, 2009 and quarterly thereafter 
as long as funding provided under this heading is available for 
obligation or expenditure.

                   GENERAL PROVISIONS, THIS SUBTITLE

SEC. 9101. ELIGIBLE EMPLOYEES IN THE RECREATIONAL MARINE INDUSTRY.

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

                 Subtitle B--Health and Human Services

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                     Health Resources and Services

    For an additional amount for ``Health Resources and Services'', 
$2,188,000,000 which shall be used as follows:
            (1) $500,000,000, of which $250,000,000 shall not be 
        available until October 1, 2009, shall be for grants to health 
        centers authorized under section 330 of the Public Health 
        Service Act (``PHS Act'');
            (2) $1,000,000,000 shall be available for renovation and 
        repair of health centers authorized under section 330 of the 
        PHS Act and for the acquisition by such centers of health 
        information technology systems: Provided, That the timeframe 
        for the award of grants pursuant to section 1103(b) of this Act 
        shall not be later than 180 days after the date of enactment of 
        this Act instead of the timeframe specified in such section;
            (3) $88,000,000 shall be for fit-out and other costs 
        related to moving into a facility to be secured through a 
        competitive lease procurement to replace or renovate a 
        headquarters building for Public Health Service agencies and 
        other components of the Department of Health and Human 
        Services; and
            (4) $600,000,000, of which $300,000,000 shall not be 
        available until October 1, 2009, shall be for the training of 
        nurses and primary care physicians and dentists as authorized 
        under titles VII and VIII of the PHS Act, for the provision of 
        health care personnel under the National Health Service Corps 
        program authorized under title III of the PHS Act, and for the 
        patient navigator program authorized under title III of the PHS 
        Act.

               Centers for Disease Control and Prevention

                disease control, research, and training

    For an additional amount for ``Disease Control, Research, and 
Training'' for equipment, construction, and renovation of facilities, 
including necessary repairs and improvements to leased laboratories, 
$462,000,000: Provided, That notwithstanding any other provision of 
law, the Centers for Disease Control and Prevention may award a single 
contract or related contracts for development and construction of 
facilities that collectively include the full scope of the project: 
Provided further, That the solicitation and contract shall contain the 
clause ``availability of funds'' found at 48 CFR 52.232-18: Provided 
further, That in accordance with applicable authorities, policies, and 
procedures, the Centers for Disease Control and Prevention shall 
acquire real property, and make any necessary improvements thereon, to 
relocate and consolidate property and facilities of the National 
Institute for Occupational Safety and Health.

                     National Institutes of Health

                 national center for research resources

    For an additional amount for ``National Center for Research 
Resources'', $1,500,000,000 for grants or contracts under section 481A 
of the Public Health Service Act to renovate or repair existing non-
Federal research facilities: Provided, That sections 481A(c)(1)(B)(ii), 
paragraphs (1), (3), and (4) of section 481A(e), and section 481B of 
such Act shall not apply to the use of such funds: Provided further, 
That the references to ``20 years'' in subsections (c)(1)(B)(i) and (f) 
of section 481A of such Act are deemed to be references to ``10 years'' 
for purposes of using such funds: Provided further, That the National 
Center for Research Resources may also use such funds to provide, under 
the authority of section 301 and title IV of such Act, shared 
instrumentation and other capital research equipment to recipients of 
grants and contracts under section 481A of such Act and other 
appropriate entities: Provided further, That the Director of the Center 
shall provide to the Committees on Appropriations of the House of 
Representatives and the Senate an annual report indicating the number 
of institutions receiving awards of a grant or contract under section 
481A of such Act, the proposed use of the funding, the average award 
size, a list of grant or contract recipients, and the amount of each 
award: Provided further, That the Center, in obligating such funds, 
shall require that each entity that applies for a grant or contract 
under section 481A for any project shall include in its application an 
assurance described in section 1621(b)(1)(I) of the Public Health 
Service Act: Provided further, That the Center shall give priority in 
the award of grants and contracts under section 481A of such Act to 
those applications that are expected to generate demonstrable energy-
saving or beneficial environmental effects: Provided further, That the 
provisions of section 1103 of this Act shall not apply to the peer-
reviewed grants awarded under this heading.

                         office of the director

                     (including transfer of funds)

    For an additional amount for ``Office of the Director'', 
$1,500,000,000, of which $750,000,000 shall not be available until 
October 1, 2009: Provided, That such funds shall be transferred to the 
Institutes and Centers of the National Institutes of Health and to the 
Common Fund established under section 402A(c)(1) of the Public Health 
Service Act in proportion to the appropriations otherwise made to such 
Institutes, Centers, and Common Fund for fiscal year 2009: Provided 
further, That these funds shall be used to support additional 
scientific research and shall be merged with and be available for the 
same purposes as the appropriation or fund to which transferred: 
Provided further, That this transfer authority is in addition to any 
other transfer authority available to the National Institutes of 
Health: Provided further, That none of these funds may be transferred 
to ``National Institutes of Health--Buildings and Facilities'', the 
Center for Scientific Review, the Center for Information Technology, 
the Clinical Center, the Global Fund for HIV/AIDS, Tuberculosis and 
Malaria, or the Office of the Director (except for the transfer to the 
Common Fund): Provided further, That the provisions of section 1103 of 
this Act shall not apply to the peer-reviewed grants awarded under this 
heading.

                        buildings and facilities

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

               Agency for Healthcare Research and Quality

                    healthcare research and quality

                     (including transfer of funds)

    For an additional amount for ``Healthcare Research and Quality'' to 
carry out titles III and IX of the Public Health Service Act, part A of 
title XI of the Social Security Act, and section 1013 of the Medicare 
Prescription Drug, Improvement, and Modernization Act of 2003, 
$700,000,000 for comparative effectiveness research: Provided, That of 
the amount appropriated in this paragraph, $400,000,000 shall be 
transferred to the Office of the Director of the National Institutes of 
Health (``Office of the Director'') to conduct or support comparative 
effectiveness research: Provided further, That funds transferred to the 
Office of the Director may be transferred to the national research 
institutes and national centers of the National Institutes of Health 
and to the Common Fund established under section 402A(c)(1) of the 
Public Health Service Act: Provided further, That this transfer 
authority is in addition to any other transfer authority available to 
the National Institutes of Health: Provided further, That the 
provisions of section 1103 of this Act shall not apply to the peer-
reviewed grants awarded under this paragraph: Provided further, That 
the amount set aside from this appropriation pursuant to section 1106 
of this Act shall be not more than 1 percent instead of the percentage 
specified in such section.
    In addition, $400,000,000 shall be available for comparative 
effectiveness research to be allocated at the discretion of the 
Secretary of Health and Human Services (``Secretary''): Provided, That 
the funding appropriated in this paragraph shall be used to accelerate 
the development and dissemination of research assessing the comparative 
effectiveness of health care treatments and strategies, including 
through efforts that: (1) conduct, support, or synthesize research that 
compares the clinical outcomes, effectiveness, and appropriateness of 
items, services, and procedures that are used to prevent, diagnose, or 
treat diseases, disorders, and other health conditions; and (2) 
encourage the development and use of clinical registries, clinical data 
networks, and other forms of electronic health data that can be used to 
generate or obtain outcomes data: Provided further, That the Secretary 
shall enter into a contract with the Institute of Medicine, for which 
no more than $1,500,000 shall be made available from funds provided in 
this paragraph, to produce and submit a report to the Congress and the 
Secretary by not later than June 30, 2009, that includes 
recommendations on the national priorities for comparative 
effectiveness research to be conducted or supported with the funds 
provided in this paragraph and that considers input from stakeholders: 
Provided further, That the Secretary shall consider any recommendations 
of the Federal Coordinating Council for Comparative Effectiveness 
Research established by section 9201 of this Act and any 
recommendations included in the Institute of Medicine report pursuant 
to the preceding proviso in designating activities to receive funds 
provided in this paragraph and may make grants and contracts with 
appropriate entities, which may include agencies within the Department 
of Health and Human Services and other governmental agencies, as well 
as private sector entities, that have demonstrated experience and 
capacity to achieve the goals of comparative effectiveness research: 
Provided further, That the Secretary shall publish information on 
grants and contracts awarded with the funds provided under this heading 
within a reasonable time of the obligation of funds for such grants and 
contracts and shall disseminate research findings from such grants and 
contracts to clinicians, patients, and the general public, as 
appropriate: Provided further, That, to the extent feasible, the 
Secretary shall ensure that the recipients of the funds provided by 
this paragraph offer an opportunity for public comment on the research: 
Provided further, That the provisions of section 1103 of this Act shall 
not apply to the peer-reviewed grants awarded under this paragraph: 
Provided further, That the Secretary shall provide the Committees on 
Appropriations of the House of Representatives and the Senate, the 
Committee on Energy and Commerce and the Committee on Ways and Means of 
the House of Representatives, and the Committee on Health, Education, 
Labor, and Pensions and the Committee on Finance of the Senate with an 
annual report on the research conducted or supported through the funds 
provided under this heading: Provided further, That the Secretary, 
jointly with the Directors of the Agency for Healthcare Research and 
Quality and the National Institutes of Health, shall provide the 
Committees on Appropriations of the House of Representatives and the 
Senate a fiscal year 2009 operating plan for the funds appropriated 
under this heading prior to making any Federal obligations of such 
funds in fiscal year 2009, but not later than 90 days after the date of 
enactment of this Act, and a fiscal year 2010 operating plan for such 
funds prior to making any Federal obligations of such funds in fiscal 
year 2010, but not later than November 1, 2009, that detail the type of 
research being conducted or supported, including the priority 
conditions addressed; and specify the allocation of resources within 
the Department of Health and Human Services: Provided further, That the 
Secretary jointly with the Directors of the Agency for Healthcare 
Research and Quality and the National Institutes of Health, shall 
provide to the Committees on Appropriations of the House of 
Representatives and the Senate a report on the actual obligations, 
expenditures, and unobligated balances for each activity funded under 
this heading not later than November 1, 2009, and every 6 months 
thereafter as long as funding provided under this heading is available 
for obligation or expenditure.

                Administration for Children and Families

                   low-income home energy assistance

    For an additional amount for ``Low-Income Home Energy Assistance'' 
for making payments under section 2602(b) and section 2602(d) of the 
Low-Income Home Energy Assistance Act of 1981, $1,000,000,000, which 
shall become available on October 1, 2009: Provided, That the 
provisions of section 1106 of this Act shall not apply to this 
appropriation.

   payments to states for the child care and development block grant

    For an additional amount for ``Payments to States for the Child 
Care and Development Block Grant'', $2,000,000,000, of which 
$1,000,000,000 shall become available on October 1, 2009, which shall 
be used to supplement, not supplant State general revenue funds for 
child care assistance for low-income families: Provided, That the 
provisions of section 1106 of this Act shall not apply to this 
appropriation.

                children and families services programs

    For an additional amount for ``Children and Families Services 
Programs'', $3,200,000,000, which shall be used as follows:
            (1) $1,000,000,000 for carrying out activities under the 
        Head Start Act, of which $500,000,000 shall become available on 
        October 1, 2009;
            (2) $1,100,000,000 for expansion of Early Head Start 
        programs, as described in section 645A of the Head Start Act, 
        of which $550,000,000 shall become available on October 1, 
        2009: Provided, That of the funds provided in this sentence, up 
        to 10 percent shall be available for the provision of training 
        and technical assistance to such programs consistent with 
        section 645A(g)(2) of such Act, and up to 3 percent shall be 
        available for monitoring the operation of such programs 
        consistent with section 641A of such Act: Provided further, 
        That the preceding proviso shall apply to this appropriation in 
        lieu of the provisions of section 1106 of this Act: Provided 
        further, That the provisions of section 1103 of this Act shall 
        not apply to this appropriation;
            (3) $1,000,000,000 for carrying out activities under 
        sections 674 through 679 of the Community Services Block Grant 
        Act, of which $500,000,000 shall become available on October 1, 
        2009, and of which no part shall be subject to paragraphs (2) 
        and (3) of section 674(b) of such Act: Provided, That 
        notwithstanding section 675C(a)(1) of such Act, 100 percent of 
        the funds made available to a State from this additional amount 
        shall be distributed to eligible entities as defined in section 
        673(1) of such Act: Provided further, That for services 
        furnished under such Act during fiscal years 2009 and 2010, 
        States may apply the last sentence of section 673(2) of such 
        Act by substituting ``200 percent'' for ``125 percent'': 
        Provided further, That the provisions of section 1106 of this 
        Act shall not apply to this appropriation; and
            (4) $100,000,000 for carrying out activities under section 
        1110 of the Social Security Act, of which $50,000,000 shall 
        become available on October 1, 2009: Provided, That the 
        Secretary of Health and Human Services shall distribute such 
        amount under the Compassion Capital Fund to eligible faith-
        based and community organizations: Provided further, That the 
        provisions of section 1106 of this Act shall not apply to this 
        appropriation.

                        Administration on Aging

                        aging services programs

    For an additional amount for ``Aging Services Programs'' under 
section 311, and subparts 1 and 2 of part C, of title III of the Older 
Americans Act of 1965, $200,000,000, of which $100,000,000 shall become 
available on October 1, 2009: Provided, That the provisions of section 
1106 of this Act shall not apply to this appropriation.

                        Office of the Secretary

  office of the national coordinator for health information technology

                     (including transfer of funds)

    For an additional amount for ``Office of the National Coordinator 
for Health Information Technology'' to carry out section 9202 of this 
Act, $2,000,000,000, to remain available until expended: Provided, That 
of such amount, the Secretary of Health and Human Services shall 
transfer $20,000,000 to the Director of the National Institute of 
Standards and Technology in the Department of Commerce for continued 
work on advancing health care information enterprise integration 
through activities such as technical standards analysis and 
establishment of conformance testing infrastructure, so long as such 
activities are coordinated with the Office of the National Coordinator 
for Health Information Technology: Provided further, That the 
provisions of section 1103 of this Act shall not apply to this 
appropriation: Provided further, That the amount set aside from this 
appropriation pursuant to section 1106 of this Act shall be 0.25 
percent instead of the percentage specified in such section: Provided 
further, That funds available under this heading shall become available 
for obligation only upon submission of an annual operating plan by the 
Secretary to the Committees on Appropriations of the House of 
Representatives and the Senate: Provided further, That the fiscal year 
2009 operating plan shall be provided not later than 90 days after 
enactment of this Act and that subsequent annual operating plans shall 
be provided not later than November 1 of each year: Provided further, 
That these operating plans shall describe how expenditures are aligned 
with the specific objectives, milestones, and metrics of the Federal 
Health Information Technology Strategic Plan, including any subsequent 
updates to the Plan; the allocation of resources within the Department 
of Health and Human Services and other Federal agencies; and the 
identification of programs and activities that are supported: Provided 
further, That the Secretary shall provide to the Committees on 
Appropriations of the House of Representatives and the Senate a report 
on the actual obligations, expenditures, and unobligated balances for 
each major set of activities not later than November 1, 2009, and every 
6 months thereafter as long as funding provided under this heading is 
available for obligation or expenditure: Provided further, That the 
Comptroller General of the United States shall review on an annual 
basis the expenditures from funds provided under this heading to 
determine if such funds are used in a manner consistent with the 
purpose and requirements under this heading.

            public health and social services emergency fund

                     (including transfer of funds)

    For an additional amount for ``Public Health and Social Services 
Emergency Fund'' to support advanced research and development pursuant 
to section 319L of the Public Health Service Act, $430,000,000: 
Provided, That the provisions of section 1103 of this Act shall not 
apply to this appropriation.
    For an additional amount for ``Public Health and Social Services 
Emergency Fund'' to prepare for and respond to an influenza pandemic, 
including the development and purchase of vaccine, antivirals, 
necessary medical supplies, diagnostics, and other surveillance tools, 
$420,000,000: Provided, That the provisions of section 1103 of this Act 
shall not apply to this appropriation: Provided further, That products 
purchased with these funds may, at the discretion of the Secretary of 
Health and Human Services (``Secretary''), be deposited in the 
Strategic National Stockpile: Provided further, That notwithstanding 
section 496(b) of the Public Health Service Act, funds may be used for 
the construction or renovation of privately owned facilities for the 
production of pandemic influenza vaccine and other biologics, where the 
Secretary finds such a contract necessary to secure sufficient supplies 
of such vaccines or biologics: Provided further, That funds 
appropriated in this paragraph may be transferred to other 
appropriation accounts of the Department of Health and Human Services, 
as determined by the Secretary to be appropriate, to be used for the 
purposed specified in this sentence.
    For an additional amount for ``Public Health and Social Services 
Emergency Fund'' to improve information technology security at the 
Department of Health and Human Services, $50,000,000: Provided, That 
the Secretary shall prepare and submit a report by not later than 
November 1, 2009, and by not later than 15 days after the end of each 
month thereafter, updating the status of actions taken and funds 
obligated in this and previous appropriations Acts for pandemic 
influenza preparedness and response activities, biomedical advanced 
research and development activities, Project BioShield, and Cyber 
Security.

                      prevention and wellness fund

                     (including transfer of funds)

     For necessary expenses for a ``Prevention and Wellness Fund'' to 
be administered through the Department of Health and Human Services 
Office of the Secretary, $3,000,000,000: Provided, That the provisions 
of section 1103 of this Act shall not apply to this appropriation: 
Provided further, That of the amount appropriated under this heading 
not less than $2,350,000,000 shall be transferred to the Centers for 
Disease Control and Prevention as follows:
            (1) not less than $954,000,000 shall be used as an 
        additional amount to carry out the immunization program 
        authorized by section 317(a), (j), and (k)(1) of the Public 
        Health Service Act (``section 317 immunization program''), of 
        which $649,900,000 shall be available on October 1, 2009;
            (2) not less than $296,000,000 shall be used as an 
        additional amount to carry out Part A of title XIX of the 
        Public Health Service Act, of which $148,000,000 shall be 
        available on October 1, 2009;
            (3) not less than $545,000,000 shall be used as an 
        additional amount to carry out chronic disease, health 
        promotion, and genomics programs, as jointly determined by the 
        Secretary of Health and Human Services (``Secretary'') and the 
        Director of the Centers for Disease Control and Prevention 
        (``Director'');
            (4) not less than $335,000,000 shall be used as an 
        additional amount to carry out domestic HIV/AIDS, viral 
        hepatitis, sexually-transmitted diseases, and tuberculosis 
        prevention programs, as jointly determined by the Secretary and 
        the Director;
            (5) not less than $60,000,000 shall be used as an 
        additional amount to carry out environmental health programs, 
        as jointly determined by the Secretary and the Director;
            (6) not less than $50,000,000 shall be used as an 
        additional amount to carry out injury prevention and control 
        programs, as jointly determined by the Secretary and the 
        Director;
            (7) not less than $30,000,000 shall be used as an 
        additional amount for public health workforce development 
        activities, as jointly determined by the Secretary and the 
        Director;
            (8) not less than $40,000,000 shall be used as an 
        additional amount for the National Institute for Occupational 
        Safety and Health to carry out research activities within the 
        National Occupational Research Agenda; and
            (9) not less than $40,000,000 shall be used as an 
        additional amount for the National Center for Health 
        Statistics:
Provided further, That of the amount appropriated under this heading 
not less than $150,000,000 shall be available for an additional amount 
to carry out activities to implement a national action plan to prevent 
healthcare-associated infections, as determined by the Secretary, of 
which not less $50,000,000 shall be provided to States to implement 
healthcare-associated infection reduction strategies: Provided further, 
That of the amount appropriated under this heading $500,000,000 shall 
be used to carry out evidence-based clinical and community-based 
prevention and wellness strategies and public health workforce 
development activities authorized by the Public Health Service Act, as 
determined by the Secretary, that deliver specific, measurable health 
outcomes that address chronic and infectious disease rates and health 
disparities, which shall include evidence-based interventions in 
obesity, diabetes, heart disease, cancer, tobacco cessation and smoking 
prevention, and oral health, and which may be used for the Healthy 
Communities program administered by the Centers for Disease Control and 
Prevention and other existing community-based programs administered by 
the Department of Health and Human Services: Provided further, That 
funds appropriated in the preceding proviso may be transferred to other 
appropriation accounts of the Department of Health and Human Services, 
as determined by the Secretary to be appropriate: Provided further, 
That the Secretary shall, directly or through contracts with public or 
private entities, provide for annual evaluations of programs carried 
out with funds provided under this heading in order to determine the 
quality and effectiveness of the programs: Provided further, That the 
Secretary shall, not later than 1 year after the date of enactment of 
this Act, submit to the Committees on Appropriations of the House of 
Representatives and the Senate, the Committee on Energy and Commerce of 
the House of Representatives, and the Committee on Health, Education, 
Labor, and Pensions of the Senate, a report (1) summarizing the annual 
evaluations of programs from the preceding proviso; and (2) making 
recommendations concerning future spending on prevention and wellness 
activities, including any recommendations made by the United States 
Preventive Services Task Force in the area of clinical preventive 
services and the Task Force on Community Preventive Services in the 
area of community preventive services: Provided further, That the 
Secretary shall enter into a contract with the Institute of Medicine, 
for which no more than $1,500,000 shall be made available from funds 
provided in this paragraph, to produce and submit a report to the 
Congress and the Secretary by no later than 1 year after the date of 
enactment of this Act that includes recommendations on the national 
priorities for clinical and community-based prevention and wellness 
activities that will have a positive impact in preventing illness or 
reducing healthcare costs and that considers input from stakeholders: 
Provided further, That the Secretary shall provide to the Committees on 
Appropriations of the House of Representatives and the Senate a fiscal 
year 2009 operating plan for the Prevention and Wellness Fund prior to 
making any Federal obligations of funds provided under this heading in 
fiscal year 2009 (excluding funds to carry out the section 317 
immunization program), but not later than 90 days after the date of 
enactment of this Act, and a fiscal year 2010 operating plan for the 
Prevention and Wellness Fund prior to making any Federal obligations of 
funds provided under this heading in fiscal year 2010 (excluding funds 
to carry out the section 317 immunization program), but not later than 
November 1, 2009, that indicate the prevention priorities to be 
addressed; provide measurable goals for each prevention priority; 
detail the allocation of resources within the Department of Health and 
Human Services; and identify which programs or activities are 
supported, including descriptions of any new programs or activities: 
Provided further, That the Secretary shall provide to the Committees on 
Appropriations of the House of Representatives and the Senate a report 
on the actual obligations, expenditures, and unobligated balances for 
each activity funded under this heading not later than November 1, 2009 
and every 6 months thereafter as long as funding provided under this 
heading is available for obligation or expenditure.

                   GENERAL PROVISIONS, THIS SUBTITLE

SEC. 9201. FEDERAL COORDINATING COUNCIL FOR COMPARATIVE EFFECTIVENESS 
              RESEARCH.

    (a) Establishment.--There is hereby established a Federal 
Coordinating Council for Comparative Effectiveness Research (in this 
section referred to as the ``Council'').
    (b) Purpose; Duties.--The Council shall--
            (1) assist the offices and agencies of the Federal 
        Government, including the Departments of Health and Human 
        Services, Veterans Affairs, and Defense, and other Federal 
        departments or agencies, to coordinate the conduct or support 
        of comparative effectiveness and related health services 
        research; and
            (2) advise the President and Congress on--
                    (A) strategies with respect to the infrastructure 
                needs of comparative effectiveness research within the 
                Federal Government;
                    (B) appropriate organizational expenditures for 
                comparative effectiveness research by relevant Federal 
                departments and agencies; and
                    (C) opportunities to assure optimum coordination of 
                comparative effectiveness and related health services 
                research conducted or supported by relevant Federal 
                departments and agencies, with the goal of reducing 
                duplicative efforts and encouraging coordinated and 
                complementary use of resources.
    (c) Membership.--
            (1) Number and appointment.--The Council shall be composed 
        of not more than 15 members, all of whom are senior Federal 
        officers or employees with responsibility for health-related 
        programs, appointed by the President, acting through the 
        Secretary of Health and Human Services (in this section 
        referred to as the ``Secretary''). Members shall first be 
        appointed to the Council not later than 30 days after the date 
        of the enactment of this Act.
            (2) Members.--
                    (A) In general.--The members of the Council shall 
                include one senior officer or employee from each of the 
                following agencies:
                            (i) The Agency for Healthcare Research and 
                        Quality.
                            (ii) The Centers for Medicare and Medicaid 
                        Services.
                            (iii) The National Institutes of Health.
                            (iv) The Office of the National Coordinator 
                        for Health Information Technology.
                            (v) The Food and Drug Administration.
                            (vi) The Veterans Health Administration 
                        within the Department of Veterans Affairs.
                            (vii) The office within the Department of 
                        Defense responsible for management of the 
                        Department of Defense Military Health Care 
                        System.
                    (B) Qualifications.--At least half of the members 
                of the Council shall be physicians or other experts 
                with clinical expertise.
            (3) Chairman; vice chairman.--The Secretary shall serve as 
        Chairman of the Council and shall designate a member to serve 
        as Vice Chairman.
    (d) Reports.--
            (1) Initial report.--Not later than June 30, 2009, the 
        Council shall submit to the President and the Congress a report 
        containing information describing Federal activities on 
        comparative effectiveness research and recommendations for 
        additional investments in such research conducted or supported 
        from funds made available for allotment by the Secretary for 
        comparative effectiveness research in this Act.
            (2) Annual report.--The Council shall submit to the 
        President and Congress an annual report regarding its 
        activities and recommendations concerning the infrastructure 
        needs, appropriate organizational expenditures and 
        opportunities for better coordination of comparative 
        effectiveness research by relevant Federal departments and 
        agencies.
    (e) Staffing; Support.--From funds made available for allotment by 
the Secretary for comparative effectiveness research in this Act, the 
Secretary shall make available not more than 1 percent to the Council 
for staff and administrative support.

SEC. 9202. INVESTMENT IN HEALTH INFORMATION TECHNOLOGY.

    (a) In General.--The Secretary of Health and Human Services shall 
invest in the infrastructure necessary to allow for and promote the 
electronic exchange and use of health information for each individual 
in the United States consistent with the goals outlined in the 
Strategic Plan developed by the Office of the National Coordinator for 
Health Information Technology. Such investment shall include investment 
in at least the following:
            (1) Health information technology architecture that will 
        support the nationwide electronic exchange and use of health 
        information in a secure, private, and accurate manner, 
        including connecting health information exchanges, and which 
        may include updating and implementing the infrastructure 
        necessary within different agencies of the Department of Health 
        and Human Services to support the electronic use and exchange 
        of health information.
            (2) Integration of health information technology, including 
        electronic medical records, into the initial and ongoing 
        training of health professionals and others in the healthcare 
        industry who would be instrumental to improving the quality of 
        healthcare through the smooth and accurate electronic use and 
        exchange of health information as determined by the Secretary.
            (3) Training on and dissemination of information on best 
        practices to integrate health information technology, including 
        electronic records, into a provider's delivery of care, 
        including community health centers receiving assistance under 
        section 330 of the Public Health Service Act and providers 
        participating in one or more of the programs under titles 
        XVIII, XIX, and XXI of the Social Security Act (relating to 
        Medicare, Medicaid, and the State Childrens Health Insurance 
        Program).
            (4) Infrastructure and tools for the promotion of 
        telemedicine, including coordination among Federal agencies in 
        the promotion of telemedicine.
            (5) Promotion of the interoperability of clinical data 
        repositories or registries.
The Secretary shall implement paragraph (3) in coordination with State 
agencies administering the Medicaid program and the State Children's 
Health Insurance Program.
    (b) Limitation.--None of the funds appropriated to carry out this 
section may be used to make significant investments in, or provide 
significant funds for, the acquisition of hardware or software or for 
the use of an electronic health or medical record, or significant 
components thereof, unless such investments or funds are for certified 
products that would permit the full and accurate electronic exchange 
and use of health information in a medical record, including standards 
for security, privacy, and quality improvement functions adopted by the 
Office of the National Coordinator for Health Information Technology.
    (c) Report.--The Secretary shall annually report to the Committees 
on Energy and Commerce, on Ways and Means, on Science and Technology, 
and on Appropriations of the House of Representatives and the 
Committees on Finance, on Health, Education, Labor, and Pensions, and 
on Appropriations of the Senate on the uses of these funds and their 
impact on the infrastructure for the electronic exchange and use of 
health information.

                         Subtitle C--Education

                        DEPARTMENT OF EDUCATION

                    Education for the Disadvantaged

    For an additional amount for ``Education for the Disadvantaged'' to 
carry out title I of the Elementary and Secondary Education Act of 1965 
(``ESEA''), $13,000,000,000: Provided, That $5,500,000,000 shall be 
available for targeted grants under section 1125 of the ESEA, of which 
$2,750,000,000 shall become available on July 1, 2009, and shall remain 
available through September 30, 2010, and $2,750,000,000 shall become 
available on July 1, 2010, and shall remain available through September 
30, 2011: Provided further, That $5,500,000,000 shall be available for 
education finance incentive grants under section 1125A of the ESEA, of 
which $2,750,000,000 shall become available on July 1, 2009, and shall 
remain available through September 30, 2010, and $2,750,000,000 shall 
become available on July 1, 2010, and shall remain available through 
September 30, 2011: Provided further, That $2,000,000,000 shall be for 
school improvement grants under section 1003(g) of the ESEA, of which 
$1,000,000,000 shall become available on July 1, 2009, and shall remain 
available through September 30, 2010, and $1,000,000,000 shall become 
available on July 1, 2010, and shall remain available through September 
30, 2011: Provided further, That the provisions of section 1106 of this 
Act shall not apply to this appropriation.

                               Impact Aid

    For an additional amount for ``Impact Aid'' to carry out section 
8007 of title VIII of the Elementary and Secondary Education Act of 
1965, $100,000,000, which shall remain available through September 30, 
2010: Provided, That the amount set aside from this appropriation 
pursuant to section 1106 of this Act shall be 1 percent instead of the 
percentage specified in such section.

                      School Improvement Programs

    For an additional amount for ``School Improvement Programs'' to 
carry out subpart 1, part D of title II of the Elementary and Secondary 
Education Act of 1965 (``ESEA''), and subtitle B of title VII of the 
McKinney-Vento Homeless Assistance Act, $1,066,000,000: Provided, That 
$1,000,000,000 shall be available for subpart 1, part D of title II of 
the ESEA, of which $500,000,000 shall become available on July 1, 2009, 
and shall remain available through September 30, 2010, and $500,000,000 
shall become available on July 1, 2010, and remain available through 
September 30, 2011: Provided further, That the provisions of section 
1106 of this Act shall not apply to these funds: Provided further, That 
$66,000,000 shall be available for subtitle B of title VII of the 
McKinney-Vento Homeless Assistance Act, of which $33,000,000 shall 
become available on July 1, 2009, and shall remain available through 
September 30, 2010, and $33,000,000 shall become available on July 1, 
2010, and remain available through September 30, 2011.

                       Innovation and Improvement

    For an additional amount for ``Innovation and Improvement'' to 
carry out subpart 1, part D and subpart 2, part B of title V of the 
Elementary and Secondary Education Act of 1965 (``ESEA''), 
$225,000,000: Provided, That $200,000,000 shall be available for 
subpart 1, part D of title V of the ESEA: Provided further, That these 
funds shall be expended as directed in the fifth, sixth, and seventh 
provisos under the heading ``Innovation and Improvement'' in the 
Department of Education Appropriations Act, 2008: Provided further, 
That a portion of these funds shall also be used for a rigorous 
national evaluation by the Institute of Education Sciences, utilizing 
randomized controlled methodology to the extent feasible, that assesses 
the impact of performance-based teacher and principal compensation 
systems supported by the funds provided in this Act on teacher and 
principal recruitment and retention in high-need schools and subjects: 
Provided further, That $25,000,000 shall be available for subpart 2, 
part B of title V of the ESEA: Provided further, That the amount set 
aside from this appropriation pursuant to section 1106 of this Act 
shall be 1 percent instead of the percentage specified in such section.

                           Special Education

    For an additional amount for ``Special Education'' for carrying out 
section 611 and part C of the Individuals with Disabilities Education 
Act (``IDEA''), $13,600,000,000: Provided, That $13,000,000,000 shall 
be available for section 611 of the IDEA, of which $6,000,000,000 shall 
become available on July 1, 2009, and remain available through 
September 30, 2010, and $7,000,000,000 shall become available on July 
1, 2010, and remain available through September 30, 2011: Provided 
further, That $600,000,000 shall be available for part C of the IDEA, 
of which $300,000,000 shall become available on July 1, 2009, and 
remain available through September 30, 2010, and $300,000,000 shall 
become available on July 1, 2010, and remain available through 
September 30, 2011: Provided further, That by July 1, 2009, the 
Secretary of Education shall reserve the amount needed for grants under 
section 643(e) of the IDEA from funds available for obligation on July 
1, 2009, with any remaining funds to be allocated in accordance with 
section 643(c) of the IDEA: Provided further, That by July 1, 2010, the 
Secretary shall reserve the amount needed for grants under section 
643(e) of the IDEA from funds available for obligation on July 1, 2010, 
with any remaining funds to be allocated in accordance with section 
643(c) of the IDEA: Provided further, That if every State, as defined 
by section 602(31) of the IDEA, reaches its maximum allocation under 
section 611(d)(3)(B)(iii) of the IDEA, and there are remaining funds, 
such funds shall be proportionally allocated to each State subject to 
the maximum amounts contained in section 611(a)(2) of the IDEA: 
Provided further, That the provisions of section 1106 of this Act shall 
not apply to this appropriation.

            Rehabilitation Services and Disability Research

    For an additional amount for ``Rehabilitation Services and 
Disability Research'' for providing grants to States to carry out the 
Vocational Rehabilitation Services program under part B of title I and 
parts B and C of chapter 1 and chapter 2 of title VII of the 
Rehabilitation Act of 1973, $700,000,000: Provided, That $500,000,000 
shall be available for part B of title I of the Rehabilitation Act, of 
which $250,000,000 shall become available on October 1, 2009: Provided 
further, That funds provided herein shall not be considered in 
determining the amount required to be appropriated under section 
100(b)(1) of the Rehabilitation Act of 1973 in any fiscal year: 
Provided further, That, notwithstanding section 7(14)(A), the Federal 
share of the costs of vocational rehabilitation services provided with 
the funds provided herein shall be 100 percent: Provided further, That 
the provisions of section 1106 of this Act shall not apply to these 
funds: Provided further, That $200,000,000 shall be available for parts 
B and C of chapter 1 and chapter 2 of title VII of the Rehabilitation 
Act, of which $100,000,000 shall become available on October 1, 2009: 
Provided further, That $34,775,000 shall be for State Grants, 
$114,581,000 shall be for independent living centers, and $50,644,000 
shall be for services for older blind individuals.

                      Student Financial Assistance

    For an additional amount for ``Student Financial Assistance'' to 
carry out subpart 1 of part A and part C of title IV of the Higher 
Education Act of 1965 (``HEA''), $16,126,000,000, which shall remain 
available through September 30, 2011: Provided, That $15,636,000,000 
shall be available for subpart 1of part A of title IV of the HEA: 
Provided further, That $490,000,000 shall be available for part C of 
title IV of the HEA, of which $245,000,000 shall become available on 
October 1, 2009: Provided further, That the provisions of section 1106 
of this Act shall not apply to this appropriation.
    The maximum Pell Grant for which a student shall be eligible during 
award year 2009-2010 shall be $4,860.

                       Student Aid Administration

    For an additional amount for ``Student Aid Administration'' to 
carry out part D of title I, and subparts 1, 3, and 4 of part A, and 
parts B, C, D, and E of title IV of the Higher Education Act of 1965, 
$50,000,000, which shall remain available through September 30, 2011: 
Provided, That such amount shall also be available for an independent 
audit of programs and activities authorized under section 459A of such 
Act: Provided further, That the provisions of section 1106 of this Act 
shall not apply to this appropriation.

                            Higher Education

    For an additional amount for ``Higher Education'' to carry out part 
A of title II of the Higher Education Act of 1965, $100,000,000: 
Provided, That section 203(c)(1) of such Act shall not apply to awards 
made with these funds.

                    Institute of Education Sciences

    For an additional amount for Institute of Education Sciences to 
carry out section 208 of the Educational Technical Assistance Act, 
$250,000,000, which may be used for Statewide data systems that include 
postsecondary and workforce information, of which up to $5,000,000 may 
be used for State data coordinators and for awards to public or private 
organizations or agencies to improve data coordination: Provided, That 
the amount set aside from this appropriation pursuant to section 1106 
of this Act shall be 1 percent instead of the percentage specified in 
such section.

              School Modernization, Renovation, and Repair

    For carrying out section 9301 of this Act, $14,000,000,000: 
Provided, That amount available under section 9301 of this Act for 
administration and oversight shall take the place of the set-aside 
under section 1106 of this Act.

         Higher Education Modernization, Renovation, and Repair

    For carrying out section 9302 of this Act, $6,000,000,000: 
Provided, That amount available under section 9302 of this Act for 
administration and oversight shall take the place of the set-aside 
under section 1106 of this Act.

                   GENERAL PROVISIONS, THIS SUBTITLE

SEC. 9301. 21ST CENTURY GREEN HIGH-PERFORMING PUBLIC SCHOOL FACILITIES.

    (a) Definitions.--In this section:
            (1) The term ``Bureau-funded school'' has the meaning given 
        to such term in section 1141 of the Education Amendments of 
        1978 (25 U.S.C. 2021).
            (2) The term ``charter school'' has the meaning given such 
        term in section 5210 of the Elementary and Secondary Education 
        Act of 1965.
            (3) The term ``local educational agency''--
                    (A) has the meaning given to that term in section 
                9101 of the Elementary and Secondary Education Act of 
                1965, and shall also include the Recovery School 
                District of Louisiana and the New Orleans Public 
                Schools; and
                    (B) includes any public charter school that 
                constitutes a local educational agency under State law.
            (4) The term ``outlying area''--
                    (A) means the United States Virgin Islands, Guam, 
                American Samoa, and the Commonwealth of the Northern 
                Mariana Islands; and
                    (B) includes the freely associated states of the 
                Republic of the Marshall Islands, the Federated States 
                of Micronesia, and the Republic of Palau.
            (5) The term ``public school facilities'' includes charter 
        schools.
            (6) The term ``State'' means each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico.
            (7) The term ``LEED Green Building Rating System'' means 
        the United States Green Building Council Leadership in Energy 
        and Environmental Design green building rating standard 
        referred to as the LEED Green Building Rating System.
            (8) The term ``Energy Star'' means the Energy Star program 
        of the United States Department of Energy and the United States 
        Environmental Protection Agency.
            (9) The term ``CHPS Criteria'' means the green building 
        rating program developed by the Collaborative for High 
        Performance Schools.
            (10) The term ``Green Globes'' means the Green Building 
        Initiative environmental design and rating system referred to 
        as Green Globes.
    (b) Purpose.--Grants under this section shall be for the purpose of 
modernizing, renovating, or repairing public school facilities, based 
on their need for such improvements, to be safe, healthy, high-
performing, and up-to-date technologically.
    (c) Allocation of Funds.--
            (1) Reservations.--
                    (A) In general.--From the amount appropriated to 
                carry out this section, the Secretary of Education 
                shall reserve 1 percent of such amount, consistent with 
                the purpose described in subsection (b)--
                            (i) to provide assistance to the outlying 
                        areas; and
                            (ii) for payments to the Secretary of the 
                        Interior to provide assistance to Bureau-funded 
                        schools.
                    (B) Administration and oversight.--The Secretary 
                may, in addition, reserve up to $6,000,000 of such 
                amount for administration and oversight of this 
                section.
            (2) Allocation to states.--
                    (A) State-by-state allocation.--Of the amount 
                appropriated to carry out this section, and not 
                reserved under paragraph (1), each State shall be 
                allocated an amount in proportion to the amount 
                received by all local educational agencies in the State 
                under part A of title I of the Elementary and Secondary 
                Education Act of 1965 for fiscal year 2008 relative to 
                the total amount received by all local educational 
                agencies in every State under such part for such fiscal 
                year.
                    (B) State administration.--A State may reserve up 
                to 1 percent of its allocation under subparagraph (A) 
                to carry out its responsibilities under this section, 
                including--
                            (i) providing technical assistance to local 
                        educational agencies;
                            (ii) developing, within 6 months of 
                        receiving its allocation under subparagraph 
                        (A), a plan to develop a database that includes 
                        an inventory of public school facilities in the 
                        State and the modernization, renovation, and 
                        repair needs of, energy use by, and the carbon 
                        footprint of such schools; and
                            (iii) developing a school energy efficiency 
                        quality plan.
                    (C) Grants to local educational agencies.--From the 
                amount allocated to a State under subparagraph (A), 
                each local educational agency in the State that meets 
                the requirements of section 1112(a) of the Elementary 
                and Secondary Education Act of 1965 shall receive an 
                amount in proportion to the amount received by such 
                local educational agency under part A of title I of 
                that Act for fiscal year 2008 relative to the total 
                amount received by all local educational agencies in 
                the State under such part for such fiscal year, except 
                that no local educational agency that received funds 
                under part A of title I of that Act for such fiscal 
                year shall receive a grant of less than $5,000.
                    (D) Special rule.--Section 1122(c)(3) of the 
                Elementary and Secondary Education Act of 1965 shall 
                not apply to subparagraph (A) or (C).
            (3) Special rules.--
                    (A) Distributions by secretary.--The Secretary of 
                Education shall make and distribute the reservations 
                and allocations described in paragraphs (1) and (2) not 
                later than 30 days after the date of the enactment of 
                this Act.
                    (B) Distributions by states.--A State shall make 
                and distribute the allocations described in paragraph 
                (2)(C) within 30 days of receiving such funds from the 
                Secretary.
    (d) Use It or Lose It Requirements.--
            (1) Deadline for binding commitments.--Each local 
        educational agency receiving funds under this section shall 
        enter into contracts or other binding commitments not later 
        than 1 year after the date of the enactment of this Act (or not 
        later than 9 months after such funds are awarded, if later) to 
        make use of 50 percent of such funds, and shall enter into 
        contracts or other binding commitments not later than 2 years 
        after the date of the enactment of this Act (or not later than 
        21 months after such funds are awarded, if later) to make use 
        of the remaining funds. In the case of activities to be carried 
        out directly by a local educational agency (rather than by 
        contracts, subgrants, or other arrangements with third 
        parties), a certification by the agency specifying the amounts, 
        planned timing, and purpose of such expenditures shall be 
        deemed a binding commitment for purposes of this subsection.
            (2) Redistribution of uncommitted funds.--A State shall 
        recover or deobligate any funds not committed in accordance 
        with paragraph (1), and redistribute such funds to other local 
        educational agencies eligible under this section and able to 
        make use of such funds in a timely manner (including binding 
        commitments within 120 days after the reallocation).
    (e) Allowable Uses of Funds.--A local educational agency receiving 
a grant under this section shall use the grant for modernization, 
renovation, or repair of public school facilities, including--
            (1) repairing, replacing, or installing roofs, including 
        extensive, intensive or semi-intensive green roofs, electrical 
        wiring, plumbing systems, sewage systems, lighting systems, or 
        components of such systems, windows, or doors, including 
        security doors;
            (2) repairing, replacing, or installing heating, 
        ventilation, air conditioning systems, or components of such 
        systems (including insulation), including indoor air quality 
        assessments;
            (3) bringing public schools into compliance with fire, 
        health, and safety codes, including professional installation 
        of fire/life safety alarms, including modernizations, 
        renovations, and repairs that ensure that schools are prepared 
        for emergencies, such as improving building infrastructure to 
        accommodate security measures;
            (4) modifications necessary to make public school 
        facilities accessible to comply with the Americans with 
        Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and section 
        504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), except 
        that such modifications shall not be the primary use of the 
        grant;
            (5) asbestos or polychlorinated biphenyls abatement or 
        removal from public school facilities;
            (6) implementation of measures designed to reduce or 
        eliminate human exposure to lead-based paint hazards through 
        methods including interim controls, abatement, or a combination 
        of each;
            (7) implementation of measures designed to reduce or 
        eliminate human exposure to mold or mildew;
            (8) upgrading or installing educational technology 
        infrastructure to ensure that students have access to up-to-
        date educational technology;
            (9) technology activities that are carried out in 
        connection with school repair and renovation, including--
                    (A) wiring;
                    (B) acquiring hardware and software;
                    (C) acquiring connectivity linkages and resources; 
                and
                    (D) acquiring microwave, fiber optics, cable, and 
                satellite transmission equipment;
            (10) modernization, renovation, or repair of science and 
        engineering laboratory facilities, libraries, and career and 
        technical education facilities, including those related to 
        energy efficiency and renewable energy, and improvements to 
        building infrastructure to accommodate bicycle and pedestrian 
        access;
            (11) renewable energy generation and heating systems, 
        including solar, photovoltaic, wind, geothermal, or biomass, 
        including wood pellet, systems or components of such systems;
            (12) other modernization, renovation, or repair of public 
        school facilities to--
                    (A) improve teachers' ability to teach and 
                students' ability to learn;
                    (B) ensure the health and safety of students and 
                staff;
                    (C) make them more energy efficient; or
                    (D) reduce class size; and
            (13) required environmental remediation related to public 
        school modernization, renovation, or repair described in 
        paragraphs (1) through (12).
    (f) Impermissible Uses of Funds.--No funds received under this 
section may be used for--
            (1) payment of maintenance costs; or
            (2) stadiums or other facilities primarily used for 
        athletic contests or exhibitions or other events for which 
        admission is charged to the general public.
    (g) Supplement, Not Supplant.--A local educational agency receiving 
a grant under this section shall use such Federal funds only to 
supplement and not supplant the amount of funds that would, in the 
absence of such Federal funds, be available for modernization, 
renovation, or repair of public school facilities.
    (h) Prohibition Regarding State Aid.--A State shall not take into 
consideration payments under this section in determining the 
eligibility of any local educational agency in that State for State 
aid, or the amount of State aid, with respect to free public education 
of children.
    (i) Special Rule on Contracting.--Each local educational agency 
receiving a grant under this section shall ensure that, if the agency 
carries out modernization, renovation, or repair through a contract, 
the process for any such contract ensures the maximum number of 
qualified bidders, including local, small, minority, and women- and 
veteran-owned businesses, through full and open competition.
    (j) Special Rule on Use of Iron and Steel Produced in the United 
States.--
            (1) In general.--A local educational agency shall not 
        obligate or expend funds received under this section for a 
        project for the modernization, renovation, or repair of a 
        public school facility unless all of the iron and steel used in 
        such project is produced in the United States.
            (2) Exceptions.--The provisions of paragraph (1) shall not 
        apply in any case in which the local educational agency finds 
        that--
                    (A) their application would be inconsistent with 
                the public interest;
                    (B) iron and steel are not produced in the United 
                States in sufficient and reasonably available 
                quantities and of a satisfactory quality; or
                    (C) inclusion of iron and steel produced in the 
                United States will increase the cost of the overall 
                project contract by more than 25 percent.
    (k) Application of GEPA.--The grant program under this section is 
an applicable program (as that term is defined in section 400 of the 
General Education Provisions Act (20 U.S.C. 1221)) subject to section 
439 of such Act (20 U.S.C. 1232b).
    (l) Charter Schools.--A local educational agency receiving an 
allocation under this section shall use an equitable portion of that 
allocation for allowable activities benefitting charter schools within 
its jurisdiction, as determined based on the percentage of students 
from low-income families in the schools of the agency who are enrolled 
in charter schools and on the needs of those schools as determined by 
the agency.
    (m) Green Schools.--
            (1) In general.--A local educational agency shall use not 
        less than 25 percent of the funds received under this section 
        for public school modernization, renovation, or repairs that 
        are certified, verified, or consistent with any applicable 
        provisions of--
                    (A) the LEED Green Building Rating System;
                    (B) Energy Star;
                    (C) the CHPS Criteria;
                    (D) Green Globes; or
                    (E) an equivalent program adopted by the State or 
                another jurisdiction with authority over the local 
                educational agency.
            (2) Technical assistance.--The Secretary, in consultation 
        with the Secretary of Energy and the Administrator of the 
        Environmental Protection Agency, shall provide outreach and 
        technical assistance to States and school districts concerning 
        the best practices in school modernization, renovation, and 
        repair, including those related to student academic achievement 
        and student and staff health, energy efficiency, and 
        environmental protection.
    (n) Youthbuild Programs.--The Secretary of Education, in 
consultation with the Secretary of Labor, shall work with recipients of 
funds under this section to promote appropriate opportunities for 
participants in a YouthBuild program (as defined in section 173A of the 
Workforce Investment Act of 1998 (29 U.S.C. 2918a)) to gain employment 
experience on modernization, renovation, and repair projects funded 
under this section.
    (o) Reporting.--
            (1) Reports by local educational agencies.--Local 
        educational agencies receiving a grant under this section shall 
        compile, and submit to the State educational agency (which 
        shall compile and submit such reports to the Secretary), a 
        report describing the projects for which such funds were used, 
        including--
                    (A) the number of public schools in the agency, 
                including the number of charter schools;
                    (B) the total amount of funds received by the local 
                educational agency under this section and the amount of 
                such funds expended, including the amount expended for 
                modernization, renovation, and repair of charter 
                schools;
                    (C) the number of public schools in the agency with 
                a metro-centric locale code of 41, 42, or 43 as 
                determined by the National Center for Education 
                Statistics and the percentage of funds received by the 
                agency under this section that were used for projects 
                at such schools;
                    (D) the number of public schools in the agency that 
                are eligible for schoolwide programs under section 1114 
                of the Elementary and Secondary Education Act of 1965 
                and the percentage of funds received by the agency 
                under this section that were used for projects at such 
                schools;
                    (E) the cost of each project, which, if any, of the 
                standards described in subsection (k)(1) the project 
                met, and any demonstrable or expected academic, energy, 
                or environmental benefits as a result of the project;
                    (F) if flooring was installed, whether--
                            (i) it was low- or no-VOC (Volatile Organic 
                        Compounds) flooring;
                            (ii) it was made from sustainable 
                        materials; and
                            (iii) use of flooring described in clause 
                        (i) or (ii) was cost effective; and
                    (G) the total number and amount of contracts 
                awarded, and the number and amount of contracts awarded 
                to local, small, minority-owned, women-owned, and 
                veteran-owned businesses.
            (2) Reports by secretary.--Not later than December 31, 
        2011, the Secretary of Education shall submit to the Committees 
        on Education and Labor and Appropriations of the House of 
        Representatives and the Committees on Health, Education, Labor, 
        and Pensions and Appropriations of the Senate a report on 
        grants made under this section, including the information 
        described in paragraph (1), the types of modernization, 
        renovation, and repair funded, and the number of students 
        impacted, including the number of students counted under 
        section 1113(a)(5) of the Elementary and Secondary Education 
        Act of 1965.

SEC. 9302. HIGHER EDUCATION MODERNIZATION, RENOVATION, AND REPAIR.

    (a) Purpose.--Grants awarded under this section shall be for the 
purpose of modernizing, renovating, and repairing institution of higher 
education facilities that are primarily used for instruction, research, 
or student housing.
    (b) Grants to State Higher Education Agencies.--
            (1) Formula.--From the amounts appropriated to carry out 
        this section, the Secretary of Education shall allocate funds 
        to State higher education agencies based on the number of 
        students attending institutions of higher education, with the 
        State higher education agency in each State receiving an amount 
        that is in proportion to the number of full-time equivalent 
        undergraduate students attending institutions of higher 
        education in such State for the most recent fiscal year for 
        which there are data available, relative to the total number of 
        full-time equivalent undergraduate students attending 
        institutions of higher education in all States for such fiscal 
        year.
            (2) Application.--To be eligible to receive an allocation 
        from the Secretary under paragraph (1), a State higher 
        education agency shall submit an application to the Secretary 
        at such time and in such manner as the Secretary may reasonably 
        require.
            (3) Reallocation.--Amounts allocated to a State higher 
        education agency under this section that are not obligated by 
        such agency within 6 months of the date the agency receives 
        such amounts shall be returned to the Secretary, and the 
        Secretary shall reallocate such amounts to State higher 
        education agencies in other States on the same basis as the 
        original allocations under paragraph (1)(B).
            (4) Administration and oversight expenses.--From the 
        amounts appropriated to carry out this section, not more than 
        $6,000,000 shall be available to the Secretary for 
        administrative and oversight expenses related to carrying out 
        this section.
    (c) Use of Grants by State Higher Education Agencies.--
            (1) Subgrants to institutions of higher education.--
                    (A) In general.--Except as provided in paragraph 
                (2), each State higher education agency receiving an 
                allocation under subsection (b)(1) shall use the amount 
                allocated to award subgrants to institutions of higher 
                education within the State to carry out projects in 
                accordance with subsection (d)(1).
                    (B) Subgrant award allocation.--A State higher 
                education agency shall award subgrants to institutions 
                of higher education under this section based on the 
                demonstrated need of each institution for facility 
                modernization, renovation, and repair.
                    (C) Priority considerations.--In awarding subgrants 
                under this section, each State higher education agency 
                shall give priority consideration to institutions of 
                higher education with any of the following 
                characteristics:
                            (i) The institution is eligible for Federal 
                        assistance under title III or title V of the 
                        Higher Education Act of 1965.
                            (ii) The institution was impacted by a 
                        major disaster or emergency declared by the 
                        President (as defined in section 102(2) of the 
                        Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act (42 U.S.C. 5122(2))), 
                        including an institution affected by a Gulf 
                        hurricane disaster, as such term is defined in 
                        section 824(g)(1) of the Higher Education Act 
                        of 1965 (20 U.S.C. 11611-3(g)(1)).
                            (iii) The institution demonstrates that the 
                        proposed project or projects to be carried out 
                        with a subgrant under this section will 
                        increase the energy efficiency of the 
                        institution's facilities and comply with the 
                        LEED Green Building Rating System.
            (2) Administrative and oversight expenses.--Of the 
        allocation amount received under subsection (b)(1), a State 
        higher education agency may reserve not more than 5 percent of 
        such amount, or $500,000, whichever is less, for administrative 
        and oversight expenses related to carrying out this section.
    (d) Use of Subgrants by Institutions of Higher Education.--
            (1) Permissible uses of funds.--An institution of higher 
        education receiving a subgrant under this section shall use 
        such subgrant to modernize, renovate, or repair facilities of 
        the institution that are primarily used for instruction, 
        research, or student housing, which may include any of the 
        following:
                    (A) Repair, replacement, or installation of roofs, 
                electrical wiring, plumbing systems, sewage systems, or 
                lighting systems.
                    (B) Repair, replacement, or installation of 
                heating, ventilation, or air conditioning systems 
                (including insulation).
                    (C) Compliance with fire and safety codes, 
                including--
                            (i) professional installation of fire or 
                        life safety alarms; and
                            (ii) modernizations, renovations, and 
                        repairs that ensure that the institution's 
                        facilities are prepared for emergencies, such 
                        as improving building infrastructure to 
                        accommodate security measures.
                    (D) Retrofitting necessary to increase the energy 
                efficiency of the institution's facilities.
                    (E) Renovations to the institution's facilities 
                necessary to comply with accessibility requirements in 
                the Americans with Disabilities Act of 1990 (42 U.S.C. 
                12101 et seq.) and section 504 of the Rehabilitation 
                Act of 1973 (29 U.S.C. 794).
                    (F) Abatement or removal of asbestos from the 
                institution's facilities.
                    (G) Modernization, renovation, and repair relating 
                to improving science and engineering laboratories, 
                libraries, and instructional facilities.
                    (H) Upgrading or installation of educational 
                technology infrastructure.
                    (I) Installation or upgrading of renewable energy 
                generation and heating systems, including solar, 
                photovoltaic, wind, biomass (including wood pellet), or 
                geothermal systems, or components of such systems.
                    (J) Other modernization, renovation, or repair 
                projects that are primarily for instruction, research, 
                or student housing.
            (2) Green school requirement.--An institution of higher 
        education receiving a subgrant under this section shall use not 
        less than 25 percent of such subgrant to carry out projects for 
        modernization, renovation, or repair that are certified, 
        verified, or consistent with the applicable provisions of--
                    (A) the LEED Green Building Rating System;
                    (B) Energy Star;
                    (C) the CHPS Criteria;
                    (D) Green Globes; or
                    (E) an equivalent program adopted by the State or 
                the State higher education agency.
            (3) Prohibited uses of funds.--No funds awarded under this 
        section may be used for--
                    (A) the maintenance of systems, equipment, or 
                facilities, including maintenance associated with any 
                permissible uses of funds described in paragraph (1);
                    (B) modernization, renovation, or repair of 
                stadiums or other facilities primarily used for 
                athletic contests or exhibitions or other events for 
                which admission is charged to the general public;
                    (C) modernization, renovation, or repair of 
                facilities--
                            (i) used for sectarian instruction, 
                        religious worship, or a school or department of 
                        divinity; or
                            (ii) in which a substantial portion of the 
                        functions of the facilities are subsumed in a 
                        religious mission; or
                    (D) construction of new facilities.
            (4) Use it or lose it requirements.--
                    (A) Deadline for binding commitments.--Each 
                institution of higher education receiving a subgrant 
                under this section shall enter into contracts or other 
                binding commitments not later than 1 year after the 
                date of the enactment of this Act (or not later than 9 
                months after the subgrant is awarded, if later) to make 
                use of 50 percent of the funds awarded, and shall enter 
                into contracts or other binding commitments not later 
                than 2 years after the date of the enactment of this 
                Act (or not later than 21 months after the subgrant is 
                awarded, if later) to make use of the remaining funds. 
                In the case of activities to be carried out directly by 
                an institution of higher education receiving such a 
                subgrant (rather than by contracts, subgrants, or other 
                arrangements with third parties), a certification by 
                the institution specifying the amounts, planned timing, 
                and purpose of such expenditures shall be deemed a 
                binding commitment for purposes of this section.
                    (B) Redistribution of uncommitted funds.--A State 
                higher education agency shall recover or deobligate any 
                subgrant funds not committed in accordance with 
                subparagraph (A), and redistribute such funds to other 
                institutions of higher education that are--
                            (i) eligible for subgrants under this 
                        section; and
                            (ii) able to make use of such funds in a 
                        timely manner (including binding commitments 
                        within 120 days after the reallocation).
    (e) Application of GEPA.--The grant program authorized in this 
section is an applicable program (as that term is defined in section 
400 of the General Education Provisions Act (20 U.S.C. 1221)) subject 
to section 439 of such Act (20 U.S.C. 1232b). The Secretary shall, 
notwithstanding section 437 of such Act (20 U.S.C. 1232) and section 
553 of title 5, United States Code, establish such program rules as may 
be necessary to implement such grant program by notice in the Federal 
Register.
    (f) Reporting.--
            (1) Reports by institutions.--Not later than September 30, 
        2011, each institution of higher education receiving a subgrant 
        under this section shall submit to the State higher education 
        agency awarding such subgrant a report describing the projects 
        for which such subgrant was received, including--
                    (A) a description of each project carried out, or 
                planned to be carried out, with such subgrant, 
                including the types of modernization, renovation, and 
                repair to be completed by each such project;
                    (B) the total amount of funds received by the 
                institution under this section and the amount of such 
                funds expended, as of the date of the report, on the 
                such projects;
                    (C) the actual or planned cost of each such project 
                and any demonstrable or expected academic, energy, or 
                environmental benefits resulting from such project; and
                    (D) the total number of contracts, and amount of 
                funding for such contracts, awarded by the institution 
                to carry out such projects, as of the date of such 
                report, including the number of contracts, and amount 
                of funding for such contracts, awarded to local, small, 
                minority-owned, women-owned, and veteran-owned 
                businesses, as such terms are defined by the Small 
                Business Act.
            (2) Reports by states.--Not later than December 31, 2011, 
        each State higher education agency receiving a grant under this 
        section shall submit to the Secretary a report containing a 
        compilation of all of the reports under paragraph (1) submitted 
        to the agency by institutions of higher education.
            (3) Reports by the secretary.--Not later than March 31, 
        2012, the Secretary shall submit to the Committee on Education 
        and Labor in the House of Representatives and the Committee on 
        Health, Education, Labor, and Pensions in the Senate and 
        Committees on Appropriations of the House of Representatives 
        and the Senate a report on grants and subgrants made under this 
        section, including the information described in paragraph (1).
    (g) Definitions.--In this section:
            (1) Chps criteria.--The term ``CHPS Criteria'' means the 
        green building rating program developed by the Collaborative 
        for High Performance Schools.
            (2) Energy star.--The term ``Energy Star'' means the Energy 
        Star program of the United States Department of Energy and the 
        United States Environmental Protection Agency.
            (3) Green globes.--The term ``Green Globes'' means the 
        Green Building Initiative environmental design and rating 
        system referred to as Green Globes.
            (4) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given such 
        term in section 101 of the Higher Education Act of 1965.
            (5) LEED green building rating system.--The term ``LEED 
        Green Building Rating System'' means the United States Green 
        Building Council Leadership in Energy and Environmental Design 
        green building rating standard referred to as the LEED Green 
        Building Rating System.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (7) State.--The term ``State'' has the meaning given such 
        term in section 103 of the Higher Education Act of 1965 (20 
        U.S.C. 1003).
            (8) State higher education agency.--The term ``State higher 
        education agency'' has the meaning given such term in section 
        103 of the Higher Education Act of 1965 (20 U.S.C. 1003).

SEC. 9303. MANDATORY PELL GRANTS.

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

SEC. 9304. INCREASE STUDENT LOAN LIMITS.

    (a) Amendments.--Section 428H(d) of the Higher Education Act of 
1965 (20 U.S.C. 1078-8(d)) is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``$2,000'' and 
                inserting ``$4,000''; and
                    (B) in subparagraph (B), by striking ``$31,000'' 
                and inserting ``$39,000''; and
            (2) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) in clause (i)(I) and clause (iii)(I), 
                        by striking ``$6,000'' each place it appears 
                        and inserting ``$8,000''; and
                            (ii) in clause (ii)(I) and clause 
                        (iii)(II), by striking ``$7,000'' each place it 
                        appears and inserting ``$9,000''; and
                    (B) in subparagraph (B), by striking ``$57,500'' 
                and inserting ``$65,500''.
    (b) Effective Date.--The amendments made by this section shall be 
effective for loans first disbursed on or after January 1, 2009.

SEC. 9305. STUDENT LENDER SPECIAL ALLOWANCE.

    (a) Temporary Calculation Rule.--Section 438(b)(2)(I) of the Higher 
Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(I)) is amended by adding 
at the end the following new clause:
                            ``(vii) Temporary calculation rule during 
                        unstable commercial paper markets.--
                                    ``(I) Calculation based on libor.--
                                For the calendar quarter beginning on 
                                October 1, 2008, and ending on December 
                                31, 2008, in computing the special 
                                allowance paid pursuant to this 
                                subsection with respect to loans for 
                                which the first disbursement is made on 
                                or after January 1, 2000, clause (i)(I) 
                                of this subparagraph shall be applied 
                                by substituting `the rate that is the 
                                average rate of the 3-month London 
                                Inter Bank Offered Rate (LIBOR) for 
                                United States dollars in effect for 
                                each of the days in such quarter as 
                                compiled and released by the British 
                                Bankers Association, minus 0.13 
                                percent,' for `the average of the bond 
                                equivalent rates of the quotes of the 
                                3-month commercial paper (financial) 
                                rates in effect for each of the days in 
                                such quarter as reported by the Federal 
                                Reserve in Publication H-15 (or its 
                                successor) for such 3-month period'.
                                    ``(II) Participation interests.--
                                Notwithstanding subclause (I) of this 
                                clause, the special allowance paid on 
                                any loan held by a lender that has sold 
                                participation interests in such loan to 
                                the Secretary shall be the rate 
                                computed under this subparagraph 
                                without regard to subclause (I) of this 
                                clause, unless the lender agrees that 
                                the participant's yield with respect to 
                                such participation interest is to be 
                                calculated in accordance with subclause 
                                (I) of this clause.''.
    (b) Conforming Amendments.--Section 438(b)(2)(I) of the Higher 
Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(I)) is further amended--
            (1) in clause (i)(II), by striking ``such average bond 
        equivalent rate'' and inserting ``the rate determined under 
        subclause (I)''; and
            (2) in clause (v)(III), by striking ``(iv), and (vi)'' and 
        inserting ``(iv), (vi), and (vii)''.

                      Subtitle D--Related Agencies

             Corporation for National and Community Service

                           operating expenses

    For an additional amount for ``Operating Expenses'' to carry out 
the Domestic Volunteer Service Act of 1973 and the National and 
Community Service Act of 1990 (``1990 Act''), $160,000,000, which shall 
be used to expand existing AmeriCorps grants: Provided, That funds made 
available under this heading may be used to provide adjustments to 
awards made prior to September 30, 2010 in order to waive the match 
requirement authorized in section 121(e)(4) of part I of subtitle C of 
the 1990 Act, if the Chief Executive Officer of the Corporation for 
National and Community Service (``CEO'') determines that the grantee 
has reduced capacity to meet this requirement: Provided further, That 
in addition to requirements identified herein, funds provided under 
this heading shall be subject to the terms and conditions under which 
funds are appropriated in fiscal year 2009: Provided further, That the 
CEO shall provide the Committees on Appropriations of the House of 
Representatives and the Senate a fiscal year 2009 operating plan for 
the funds appropriated under this heading prior to making any Federal 
obligations of such funds in fiscal year 2009, but not later than 90 
days after the date of enactment of this Act, and a fiscal year 2010 
operating plan for such funds prior to making any Federal obligations 
of such funds in fiscal year 2010, but not later than November 1, 2009, 
that detail the allocation of resources and the increased number of 
volunteers supported by the AmeriCorps programs: Provided further, That 
the CEO shall provide to the Committees on Appropriations of the House 
of Representatives and the Senate a report on the actual obligations, 
expenditures, and unobligated balances for each activity funded under 
this heading not later than November 1, 2009, and every 6 months 
thereafter as long as funding provided under this heading is available 
for obligation or expenditure.

                         National Service Trust

                     (including transfer of funds)

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

                     Social Security Administration

                 limitation on administrative expenses

                     (including transfer of funds)

     For an additional amount for ``Limitation on Administrative 
Expenses'', $900,000,000, which shall be used as follows:
            (1) $400,000,000 for the construction and associated costs 
        to establish a new National Computer Center, which may include 
        lease or purchase of real property: Provided, That the 
        construction plan and site selection for such center shall be 
        subject to review and approval by the Office of Management and 
        Budget: Provided further, That the Committees on Appropriations 
        of the House of Representatives and the Senate shall be 
        notified 15 days in advance of the lease or purchase of such 
        site: Provided further, That such center shall continue to be a 
        government-operated facility; and
            (2) $500,000,000 for processing disability and retirement 
        workloads: Provided, That up to $40,000,000 may be used by the 
        Commissioner of Social Security for health information 
        technology research and activities to facilitate the adoption 
        of electronic medical records in disability claims, including 
        the transfer of funds to ``Supplemental Security Income 
        Program'' to carry out activities under section 1110 of the 
        Social Security Act.

          TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS

                         DEPARTMENT OF DEFENSE

                      Military Construction, Army

     For an additional amount for ``Military Construction, Army'', 
$920,000,000: Provided, That notwithstanding any other provision of 
law, such funds may be obligated and expended to carry out planning and 
design and military construction projects in the United States not 
otherwise authorized by law: Provided further, That of the amount 
provided under this heading, $600,000,000 shall be for training and 
recruit troop housing, $220,000,000 shall be for permanent party troop 
housing, and $100,000,000 shall be for child development centers: 
Provided further, That not later than 30 days after the date of 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Appropriations of the House of Representatives and the 
Senate an expenditure plan for funds provided under this heading.

              Military Construction, Navy and Marine Corps

     For an additional amount for ``Military Construction, Navy and 
Marine Corps'', $350,000,000: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to carry out 
planning and design and military construction projects in the United 
States not otherwise authorized by law: Provided further, That of the 
amount provided under this heading, $170,000,000 shall be for sailor 
and marine housing and $180,000,000 shall be for child development 
centers: Provided further, That not later than 30 days after the date 
of enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Appropriations of the House of Representatives and the 
Senate an expenditure plan for funds provided under this heading.

                    Military Construction, Air Force

     For an additional amount for ``Military Construction, Air Force'', 
$280,000,000: Provided, That notwithstanding any other provision of 
law, such funds may be obligated and expended to carry out planning and 
design and military construction projects in the United States not 
otherwise authorized by law: Provided further, That of the amount 
provided under this heading, $200,000,000 shall be for airmen housing 
and $80,000,000 shall be for child development centers: Provided 
further, That not later than 30 days after the date of enactment of 
this Act, the Secretary of Defense shall submit to the Committees on 
Appropriations of the House of Representatives and the Senate an 
expenditure plan for funds provided under this heading.

                  Military Construction, Defense-Wide

     For an additional amount for ``Military Construction, Defense-
Wide'', $3,750,000,000, for the construction of hospitals and 
ambulatory surgery centers: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to carry out 
planning and design and military construction projects in the United 
States not otherwise authorized by law: Provided further, That not 
later than 30 days after the date of enactment of this Act, the 
Secretary of Defense shall submit to the Committees on Appropriations 
of the House of Representatives and the Senate an expenditure plan for 
funds provided under this heading.

               Military Construction, Army National Guard

     For an additional amount for ``Military Construction, Army 
National Guard'', $140,000,000: Provided, That notwithstanding any 
other provision of law, such funds may be obligated and expended to 
carry out planning and design and military construction projects in the 
United States not otherwise authorized by law: Provided further, That 
not later than 30 days after the date of enactment of this Act, the 
Secretary of Defense shall submit to the Committees on Appropriations 
of the House of Representatives and the Senate an expenditure plan for 
funds provided under this heading.

               Military Construction, Air National Guard

     For an additional amount for ``Military Construction, Air National 
Guard'', $70,000,000: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to carry out 
planning and design and military construction projects in the United 
States not otherwise authorized by law: Provided further, That not 
later than 30 days after the date of enactment of this Act, the 
Secretary of Defense shall submit to the Committees on Appropriations 
of the House of Representatives and the Senate an expenditure plan for 
funds provided under this heading.

                  Military Construction, Army Reserve

     For an additional amount for ``Military Construction, Army 
Reserve'', $100,000,000: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to carry out 
planning and design and military construction projects in the United 
States not otherwise authorized by law: Provided further, That not 
later than 30 days after the date of enactment of this Act, the 
Secretary of Defense shall submit to the Committees on Appropriations 
of the House of Representatives and the Senate an expenditure plan for 
funds provided under this heading.

                  Military Construction, Navy Reserve

     For an additional amount for ``Military Construction, Navy 
Reserve'', $30,000,000: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to carry out 
planning and design and military construction projects in the United 
States not otherwise authorized by law: Provided further, That not 
later than 30 days after the date of enactment of this Act, the 
Secretary of Defense shall submit to the Committees on Appropriations 
of the House of Representatives and the Senate an expenditure plan for 
funds provided under this heading.

                Military Construction, Air Force Reserve

     For an additional amount for ``Military Construction, Air Force 
Reserve'', $60,000,000: Provided, That notwithstanding any other 
provision of law, such funds may be obligated and expended to carry out 
planning and design and military construction projects in the United 
States not otherwise authorized by law: Provided further, That not 
later than 30 days after the date of enactment of this Act, the 
Secretary of Defense shall submit to the Committees on Appropriations 
of the House of Representatives and the Senate an expenditure plan for 
funds provided under this heading.

            Department of Defense Base Closure Account 1990

     For an additional amount to be deposited into the Department of 
Defense Base Closure Account 1990, established by section 2906(a)(1) of 
the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. 2687 
note), $300,000,000: Provided, That not later than 30 days after the 
date of enactment of this Act, the Secretary of Defense shall submit to 
the Committees on Appropriations of the House of Representatives and 
the Senate an expenditure plan for funds provided under this heading.

                     DEPARTMENT OF VETERANS AFFAIRS

                     Veterans Health Administration

                           medical facilities

     For an additional amount for ``Medical Facilities'' for non-
recurring maintenance, including energy projects, $950,000,000: 
Provided, That not later than 30 days after the date of enactment of 
this Act, the Secretary of Veterans Affairs shall submit to the 
Committees on Appropriations of the House of Representatives and the 
Senate an expenditure plan for funds provided under this heading.

                    National Cemetery Administration

    For an additional amount for ``National Cemetery Administration'' 
for monument and memorial repairs, $50,000,000: Provided, That not 
later than 30 days after the date of enactment of this Act, the 
Secretary of Veterans Affairs shall submit to the Committees on 
Appropriations of the House of Representatives and the Senate an 
expenditure plan for funds provided under this heading.

                     TITLE XI--DEPARTMENT OF STATE

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs

                        capital investment fund

    For an additional amount for ``Capital Investment Fund'', 
$276,000,000, of which up to $120,000,000 shall be available for the 
design and construction of a backup information management facility in 
the United States to support mission-critical operations and projects, 
and up to $98,527,000 shall be available to carry out the Department of 
State's responsibilities under the Comprehensive National Cybersecurity 
Initiative: Provided, That the Secretary of State shall submit to the 
Committees on Appropriations of the House of Representatives and the 
Senate within 90 days of enactment of this Act a detailed spending plan 
for funds appropriated under this heading.

                       International Commissions

 international boundary and water commission, united states and mexico

                              construction

                     (including transfer of funds)

    For an additional amount for ``Construction'' for the water 
quantity program to meet immediate repair and rehabilitation 
requirements, $224,000,000: Provided, That up to $2,000,000 may be 
transferred to, and merged with, funds available under the heading 
``International Boundary and Water Commission, United States and 
Mexico--Salaries and Expenses'', and such amount shall be in lieu of 
amounts available under section 1106 of this Act: Provided, That the 
Secretary of State shall submit to the Committees on Appropriations of 
the House of Representatives and the Senate within 90 days of enactment 
of this Act a detailed spending plan for funds appropriated under this 
heading.

      TITLE XII--TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT

                      DEPARTMENT OF TRANSPORTATION

                    Federal Aviation Administration

                       grants-in-aid for airports

    For an additional amount for ``Grants-in-Aid for Airports'', to 
enable the Secretary of Transportation to make grants for discretionary 
projects as authorized by subchapter I of chapter 471 and subchapter I 
of chapter 475 of title 49, United States Code, $3,000,000,000: 
Provided, That such funds shall not be subject to apportionment 
formulas, special apportionment categories, or minimum percentages 
under chapter 471: Provided further, That the conditions, 
certifications, and assurances required for grants under subchapter I 
of chapter 471 of such title apply: Provided further, That for purposes 
of applying section 1104 of this Act to this appropriation, the 
deadline for grantees to enter into contracts or other binding 
commitments to make use of not less than 50 percent of the funds 
awarded shall be 120 days after award of the grant.

                     Federal Highway Administration

                   highway infrastructure investment

    For projects and activities eligible under section 133 of title 23, 
United States Code, section 144 of such title (without regard to 
subsection (g)), and sections 103, 119, 134, 148, and 149 of such 
title, $30,000,000,000, of which $300,000,000 shall be for Indian 
reservation roads under section 204 of such title; $250,000,000 shall 
be for park roads and parkways under section 204 of such title; 
$20,000,000 shall be for highway surface transportation and technology 
training under section 140(b) of such title; and $20,000,000 shall be 
for disadvantaged business enterprises bonding assistance under section 
332(e) of title 49, United States Code: Provided, That the amount set 
aside from this appropriation pursuant to section 1106 of this Act 
shall not be more than 0.2 percent of the funds made available under 
this heading instead of the percentage specified in such section: 
Provided further, That, after making the set-asides authorized by the 
previous provisos, the funds made available under this heading shall be 
distributed among the States, and Puerto Rico, American Samoa, Guam, 
the Virgin Islands, and the Commonwealth of the Northern Mariana 
Islands, in the same ratio as the obligation limitation for fiscal year 
2008 was distributed among the States in accordance with the formula 
specified in section 120(a)(6) of division K of Public Law 110-161, 
but, in the case of the Puerto Rico Highway Program and the Territorial 
Highway Program, under section 120(a)(5) of such division: Provided 
further, That 45 percent of the funds distributed to a State under this 
heading shall be suballocated within the State in the manner and for 
the purposes described in section 133(d) of title 23, United States 
Code, (without regard to the comparison to fiscal year 2005 in 
paragraph (2)): Provided further, That in selecting projects to be 
funded, recipients shall give priority to projects that can award 
contracts within 120 days of enactment of this Act, are included in an 
approved Statewide Transportation Improvement Program (STIP) and/or 
Metropolitan Transportation Improvement Program (TIP), are projected 
for completion within a three-year time frame, and are located in 
economically distressed areas as defined by section 301 of the Public 
Works and Economic Development Act of 1965, as amended (42 U.S.C. 
3161): Provided further, That funds made available under this heading 
shall be administered as if apportioned under chapter 1 of title 23, 
United States Code, except for funds made available for Indian 
reservation roads and park roads and parkways which shall be 
administered in accordance with chapter 2 of title 23, United States 
Code: Provided further, That the Federal share payable on account of 
any project or activity carried out with funds made available under 
this heading shall, at the option of the recipient, be up to 100 
percent of the total cost thereof: Provided further, That funds made 
available by this Act shall not be obligated for the purposes 
authorized under section 115(b) of title 23, United States Code: 
Provided further, That the provisions of section 1101(b) of Public Law 
109-59 shall apply to funds made available under this heading: Provided 
further, That, in lieu of the redistribution required by section 
1104(b) of this Act, if less than 50 percent of the funds made 
available to each State and territory under this heading are obligated 
within 180 days after the date of distribution of those funds to the 
States and territories, then the portion of the 50 percent of the total 
funding distributed to the State or territory that has not been 
obligated shall be redistributed, in the manner described in section 
120(c) of division K of Public Law 110-161, to those States and 
territories that have obligated at least 50 percent of the funds made 
available under this heading and are able to obligate amounts in 
addition to those previously distributed, except that, for those funds 
suballocated within the State, if less than 50 percent of the funds so 
suballocated within the State are obligated within 150 days of 
suballocation, then the portion of the 50 percent of funding so 
suballocated that has not been obligated will be returned to the State 
for use anywhere in the State prior to being redistributed in 
accordance with the first part of this proviso: Provided further, That, 
in lieu of the redistribution required by section 1104(b) of this Act, 
any funds made available under this heading that are not obligated by 
August 1, 2010, shall be redistributed, in the manner described in 
section 120(c) of division K of Public Law 110-161, to those States 
able to obligate amounts in addition to those previously distributed, 
except that funds suballocated within the State that are not obligated 
by June 1, 2010, will be returned to the State for use anywhere in the 
State prior to being redistributed in accordance with the first part of 
this proviso:  Provided further, That notwithstanding section 1103 of 
this Act, funds made available under this heading shall be apportioned 
not later than 7 days after the date of enactment of this Act.

                    Federal Railroad Administration

        capital assistance for intercity passenger rail service

     For an additional amount for ``Capital Assistance for Intercity 
Passenger Rail Service'' to enable the Secretary of Transportation to 
make grants for capital costs as authorized by chapter 244 of title 49 
United States Code, $300,000,000: Provided, That notwithstanding 
section 1103 of this Act, the Secretary shall give preference to 
projects for the repair, rehabilitation, upgrade, or purchase of 
railroad assets or infrastructure that can be awarded within 180 days 
of enactment of this Act: Provided further, That in awarding grants for 
the acquisition of a piece of rolling stock or locomotive, the 
Secretary shall give preference to FRA-compliant rolling stock and 
locomotives: Provided further, That the Secretary shall give preference 
to projects that support the development of intercity high speed rail 
service: Provided further, That the Federal share shall be, at the 
option of the recipient, up to 100 percent.

  capital and debt service grants to the national railroad passenger 
                              corporation

    For an additional amount for ``Capital and Debt Service Grants to 
the National Railroad Passenger Corporation'' (Amtrak) to enable the 
Secretary of Transportation to make capital grants to Amtrak as 
authorized by section 101(c) of the Passenger Rail Investment and 
Improvement Act of 2008 (Public Law 110-432), $800,000,000: Provided, 
That priority shall be given to projects for the repair, 
rehabilitation, or upgrade of railroad assets or infrastructure: 
Provided further, That none of the funds under this heading shall be 
used to subsidize the operating losses of Amtrak: Provided further, 
Notwithstanding section 1103 of this Act, funds made available under 
this heading shall be awarded not later than 7 days after the date of 
enactment of this Act.

                     Federal Transit Administration

                       transit capital assistance

    For transit capital assistance grants, $6,000,000,000, of which 
$5,400,000,000 shall be for grants under section 5307 of title 49, 
United States Code and shall be apportioned in accordance with section 
5336 of such title (other than subsections (i)(1) and (j)) but may not 
be combined or commingled with any other funds apportioned under such 
section 5336, and of which $600,000,000 shall be for grants under 
section 5311 of such title and shall be apportioned in accordance with 
such section 5311 but may not be combined or commingled with any other 
funds apportioned under that section: Provided, That of the funds 
provided for section 5311 under this heading, 3 percent shall be made 
available for section 5311(c)(1): Provided further, That applicable 
chapter 53 requirements shall apply except that the Federal share of 
the costs for which a grant is made under this heading shall be, at the 
option of the recipient, up to 100 percent:  Provided further, In lieu 
of the requirements of section 1103 of this Act, funds made available 
under this heading shall be apportioned not later than 7 days after the 
date of enactment of this Act: Provided further, That for purposes of 
applying section 1104 of this Act to this appropriation, the deadline 
for grantees to enter into obligations to make use of not less than 50 
percent of the funds awarded shall be 180 days after apportionment: 
Provided further, That the provisions of section 1101(b) of Public Law 
109-59 shall apply to funds made available under this heading: Provided 
further, That notwithstanding any other provision of law, of the funds 
apportioned in accordance with section 5336, up to three-quarters of 1 
percent shall be available for administrative expenses and program 
management oversight and of the funds apportioned in accordance with 
section 5311, up to one-half of 1 percent shall be available for 
administrative expenses and program management oversight and both 
amounts shall remain available for obligation until September 30, 2012: 
Provided further, That the preceding proviso shall apply in lieu of the 
provisions in section 1106 of this Act.

                fixed guideway infrastructure investment

    For an amount for capital expenditures authorized under section 
5309(b)(2) of title 49, United States Code, $2,000,000,000: Provided, 
That the Secretary of Transportation shall apportion funds under this 
heading pursuant to the formula set forth in section 5337 of title 49, 
United States Code: Provided further, That the funds appropriated under 
this heading shall not be commingled with funds available under the 
Formula and Bus Grants account:  Provided further, In lieu of the 
requirements of section 1103 of this Act, funds made available under 
this heading shall be apportioned not later than 7 days after the date 
of enactment of this Act: Provided further, That for purposes of 
applying section 1104 of this Act to this appropriation, the deadline 
for grantees to enter into obligations to make use of not less than 50 
percent of the funds awarded shall be 180 days after apportionment: 
Provided further, That applicable chapter 53 requirements shall apply 
except that the Federal share of the costs for which a grant is made 
under this heading shall be, at the option of the recipient, up to 100 
percent: Provided further, That the provisions of section 1101(b) of 
Public Law 109-59 shall apply to funds made available under this 
heading: Provided further, That notwithstanding any other provision of 
law, up to 1 percent of the funds under this heading shall be available 
for administrative expenses and program management oversight and shall 
remain available for obligation until September 30, 2012: Provided 
further, That the preceding proviso shall apply in lieu of the 
provisions in section 1106 of this Act.

                       capital investment grants

     For an additional amount for ``Capital Investment Grants'', as 
authorized under section 5338(c)(4) of title 49, United States Code, 
and allocated under section 5309(m)(2)(A) of such title, to enable the 
Secretary of Transportation to make discretionary grants as authorized 
by section 5309(d) and (e) of such title, $1,000,000,000: Provided, 
That such amount shall be allocated without regard to the limitation 
under section 5309(m)(2)(A)(i): Provided further, That in selecting 
projects to be funded, priority shall be given to projects that are 
currently in construction or are able to award contracts based on bids 
within 120 days of enactment of this Act: Provided further, That for 
purposes of applying section 1104 of this Act to this appropriation, 
the deadline for grantees to enter into contracts or other binding 
commitments to make use of not less than 50 percent of the funds 
awarded shall be 120 days after award: Provided further, That the 
provisions of section 1101(b) of Public Law 109-59 shall apply to funds 
made available under this heading: Provided further, That applicable 
chapter 53 requirements shall apply, except that notwithstanding any 
other provision of law, up to 1 percent of the funds under this heading 
shall be available for administrative expenses and program management 
oversight and shall remain available for obligation until September 30, 
2012: Provided further, That the preceding proviso shall apply in lieu 
of the provisions in section 1106 of this Act.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                       Public and Indian Housing

                      public housing capital fund

    For an additional amount for ``Public Housing Capital Fund'' to 
carry out capital and management activities for public housing 
agencies, as authorized under section 9 of the United States Housing 
Act of 1937 (42 U.S.C. 1437g) (``the Act''), $5,000,000,000: Provided, 
That the Secretary of Housing and Urban Development shall distribute at 
least $4,000,000,000 of this amount by the same formula used for 
amounts made available in fiscal year 2008: Provided further, That 
public housing authorities shall give priority to capital projects that 
can award contracts based on bids within 120 days from the date the 
funds are made available to the public housing authorities: Provided 
further, That public housing agencies shall give priority consideration 
to the rehabilitation of vacant rental units: Provided further, That 
notwithstanding any other provision of the Act or regulations, (1) 
funding provided herein may not be used for Operating Fund activities 
pursuant to section 9(g) of the Act, and (2) any restriction of funding 
to replacement housing uses shall be inapplicable: Provided further, 
That public housing agencies shall prioritize capital projects underway 
or already in their 5-year plans: Provided further, That of the amount 
provided under this heading, the Secretary may obligate up to 
$1,000,000,000, for competitive grants to public housing authorities 
for activities including: (1) investments that leverage private sector 
funding or financing for housing renovations and energy conservation 
retrofit investments; (2) rehabilitation of units using sustainable 
materials and methods that improve energy efficiency, reduce energy 
costs, or preserve and improve units with good access to public 
transportation or employment centers; (3) increase the availability of 
affordable rental housing by expediting rehabilitation projects to 
bring vacant units into use or by filling the capital investment gap 
for redevelopment or replacement housing projects which have been 
approved or are otherwise ready to proceed but are stalled due to the 
inability to obtain anticipated private capital; or (4) address the 
needs of seniors and persons with disabilities through improvements to 
housing and related facilities which attract or promote the coordinated 
delivery of supportive services: Provided further, That the Secretary 
may waive statutory or regulatory provisions related to the obligation 
and expenditure of capital funds if necessary to facilitate the timely 
expenditure of funds (except for requirements related to fair housing, 
nondiscrimination, labor standards, and the environment).

   elderly, disabled, and section 8 assisted housing energy retrofit

    For grants or loans to owners of properties receiving project-based 
assistance pursuant to section 202 of the Housing Act of 1959 (12 
U.S.C. 17012), section 811 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013), or section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f), to accomplish energy retrofit 
investments, $2,500,000,000: Provided, That such loans or grants shall 
be provided through the Office of Affordable Housing Preservation of 
the Department of Housing and Urban Development, on such terms and 
conditions as the Secretary of Housing and Urban Development deems 
appropriate: Provided further, That eligible owners must have at least 
a satisfactory management review rating, be in substantial compliance 
with applicable performance standards and legal requirements, and 
commit to an additional period of affordability determined by the 
Secretary: Provided further, That the Secretary shall undertake 
appropriate underwriting and oversight with respect to such 
transactions: Provided further, That the Secretary may set aside funds 
made available under this heading for an efficiency incentive payable 
upon satisfactory completion of energy retrofit investments, and may 
provide additional incentives if such investments resulted in 
extraordinary job creation for low-income and very low-income persons: 
Provided further, that of the funds provided under this heading, 1 
percent shall be available only for staffing, training, technical 
assistance, technology, monitoring, research and evaluation activities.

                  native american housing block grants

    For an additional amount for ``Native American Housing Block 
Grants'', as authorized under title I of the Native American Housing 
Assistance and Self-Determination Act of 1996 (``NAHASDA'') (25 U.S.C. 
4111 et seq.), $500,000,000: Provided, That $250,000,000 of the amount 
appropriated under this heading shall be distributed according to the 
same funding formula used in fiscal year 2008: Provided further, That 
in selecting projects to be funded, recipients shall give priority to 
projects that can award contracts based on bids within 120 days from 
the date that funds are available to the recipients: Provided further, 
That in allocating the funds appropriated under this heading, the 
Secretary of Housing and Urban Development shall not require an 
additional action plan from grantees: Provided further, That the 
Secretary may obligate $250,000,000 of the amount appropriated under 
this heading for competitive grants to eligible entities that apply for 
funds as authorized under NAHASDA: Provided further, That in awarding 
competitive funds, the Secretary shall give priority to projects that 
will spur construction and rehabilitation and will create employment 
opportunities for low-income and unemployed persons.

                   Community Planning and Development

                       community development fund

    For an additional amount for ``Community Development Fund'' 
$1,000,000,000, to carry out the community development block grant 
program under title I of the Housing and Community Development Act of 
1974 (42 U.S.C. 5301 et seq.): Provided, That the amount appropriated 
in this paragraph shall be distributed according to the same funding 
formula used in fiscal year 2008: Provided further, That in allocating 
the funds appropriated in this paragraph, the Secretary of Housing and 
Urban Development shall not require an additional action plan from 
grantees: Provided further, That in selecting projects to be funded, 
recipients shall give priority to projects that can award contracts 
based on bids within 120 days from the date the funds are made 
available to the recipients; Provided further, That in administering 
funds provided in this paragraph, the Secretary may waive any provision 
of any statute or regulation that the Secretary administers in 
connection with the obligation by the Secretary or the use by the 
recipient of these funds (except for requirements related to fair 
housing, nondiscrimination, labor standards, and the environment), upon 
a finding that such waiver is required to facilitate the timely use of 
such funds and would not be inconsistent with the overall purpose of 
the statute.
     For a further additional amount for ``Community Development 
Fund'', $4,190,000,000, to be used for neighborhood stabilization 
activities related to emergency assistance for the redevelopment of 
abandoned and foreclosed homes as authorized under division B, title 
III of the Housing and Economic Recovery Act of 2008 (Public Law 110-
289), of which--
            (1) not less than $3,440,000,000 shall be allocated by a 
        competition for which eligible entities shall be States, units 
        of general local government, and nonprofit entities or 
        consortia of nonprofit entities: Provided, That the award 
        criteria for such competition shall include grantee capacity, 
        leveraging potential, targeted impact of foreclosure 
        prevention, and any additional factors determined by the 
        Secretary of Housing and Urban Development: Provided further, 
        that the Secretary may establish a minimum grant size: Provided 
        further, That amounts made available under this Section may be 
        used to (A) establish financing mechanisms for purchase and 
        redevelopment of foreclosed-upon homes and residential 
        properties, including such mechanisms as soft-seconds, loan 
        loss reserves, and shared-equity loans for low- and moderate-
        income homebuyers; (B) purchase and rehabilitate homes and 
        residential properties that have been abandoned or foreclosed 
        upon, in order to sell or rent such homes and properties; (C) 
        establish and operate land banks for homes that have been 
        foreclosed upon; (D) demolish foreclosed properties that have 
        become blighted structures; and (E) redevelop demolished or 
        vacant foreclosed properties in order to sell or rent such 
        properties; and
            (2) up to $750,000,000 shall be awarded by competition to 
        nonprofit entities or consortia of nonprofit entities to 
        provide community stabilization assistance by (A) accelerating 
        state and local government and nonprofit productivity; (B) 
        increasing the scale and efficiency of property transfers of 
        foreclosed and vacant residential properties from financial 
        institutions and government entities to qualified local housing 
        providers in order to return the properties to productive 
        affordable housing use; (C) building industry and property 
        management capacity; and (D) partnering with private sector 
        real estate developers and contractors and leveraging private 
        sector capital: Provided further, That such community 
        stabilization assistance shall be provided primarily in States 
        and areas with high rates of defaults and foreclosures to 
        support the acquisition, rehabilitation and property management 
        of single-family and multi-family homes and to work in 
        partnership with the private sector real estate industry and to 
        leverage available private and public funds for those purposes: 
        Provided further, That for purposes of this paragraph qualified 
        local housing providers shall be nonprofit organizations with 
        demonstrated capabilities in real estate development or 
        acquisition and rehabilitation or property management of 
        single- or multi-family homes, or local or state governments or 
        instrumentalities of such governments: Provided further, That 
        qualified local housing providers shall be expected to utilize 
        and leverage additional local nonprofit, governmental, for-
        profit and private resources: 
Provided further, That in the case of any foreclosure on any dwelling 
or residential real property acquired with any amounts made available 
under this heading, any successor in interest in such property pursuant 
to the foreclosure shall assume such interest subject to--(1) the 
provision by such successor in interest of a notice to vacate to any 
bona fide tenant at least 90 days before the effective date of such 
notice; and (2) the rights of any bona fide tenant, as of the date of 
such notice of foreclosure (A) under any bona fide lease entered into 
before the notice of foreclosure to occupy the premises until the end 
of the remaining term of the lease, except that a successor in interest 
may terminate a lease effective on the date of sale of the unit to a 
purchaser who will occupy the unit as a primary residence, subject to 
the receipt by the tenant of the 90-day notice under this paragraph; or 
(B) without a lease or with a lease terminable at will under State law, 
subject to the receipt by the tenant of the 90-day notice under this 
paragraph, except that nothing in this paragraph shall affect the 
requirements for termination of any Federal- or State-subsidized 
tenancy or of any State or local law that provides longer time periods 
or other additional protections for tenants: Provided further, That, 
for purposes of this paragraph, a lease or tenancy shall be considered 
bona fide only if (1) the mortgagor under the contract is not the 
tenant; (2) the lease or tenancy was the result of an arms-length 
transaction; and (3) the lease or tenancy requires the receipt of rent 
that is not substantially less than fair market rent for the property: 
Provided further, That the recipient of any grant or loan from amounts 
made available under this heading may not refuse to lease a dwelling 
unit in housing assisted with such loan or grant to a holder of a 
voucher or certificate of eligibility under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f) because of the status of 
the prospective tenant as such a holder: Provided further, That in the 
case of any qualified foreclosed housing for which funds made available 
under this heading are used and in which a recipient of assistance 
under section 8(o) of the U.S. Housing Act of 1937 resides at the time 
of acquisition or financing, the owner and any successor in interest 
shall be subject to the lease and to the housing assistance payments 
contract for the occupied unit: Provided further, That vacating the 
property prior to sale shall not constitute good cause for termination 
of the tenancy unless the property is unmarketable while occupied or 
unless the owner or subsequent purchaser desires the unit for personal 
or family use: Provided further, That this paragraph shall not preempt 
any State or local law that provides more protection for tenants: 
Provided further, That amounts made available under this heading may be 
used for the costs of demolishing foreclosed housing that is 
deteriorated or unsafe: Provided further, That the amount for 
demolition of such housing may not exceed 10 percent of amounts 
allocated under this paragraph to States and units of general local 
government: Provided further, That no amounts from a grant made under 
this paragraph may be used to demolish any public housing (as such term 
is defined in section 3 of the United States Housing Act of 1937 (42 
U.S.C. 1437a)): Provided further, That section 2301(d)(4) of the 
Housing and Economic Recovery Act of 2008 (Public Law 110-289) is 
repealed.

                  home investment partnerships program

     For an additional amount for ``HOME Investment Partnerships 
Program'' as authorized under Title II of the Cranston-Gonzalez 
National Affordable Housing Act (``the Act''), $1,500,000,000: 
Provided, That the amount appropriated under this heading shall be 
distributed according to the same funding formula used in fiscal year 
2008: Provided further, That the Secretary of Housing and Urban 
Development may waive statutory or regulatory provisions related to the 
obligation of such funds if necessary to facilitate the timely 
expenditure of funds (except for requirements related to fair housing, 
nondiscrimination, labor standards, and the environment): Provided 
further, That in selecting projects to be funded, recipients shall give 
priority to projects that can award contracts based on bids within 120 
days from the date that funds are available to the recipients.

        self-help and assisted homeownership opportunity program

     For an additional amount for ``Self-Help and Assisted 
Homeownership Opportunity Program'', as authorized under section 11 of 
the Housing Opportunity Program Extension Act of 1996, $10,000,000: 
Provided, That in awarding competitive grant funds, the Secretary of 
Housing and Urban Development shall give priority to the provision and 
rehabilitation of sustainable, affordable single and multifamily units 
in low-income, high-need rural areas: Provided further, That in 
selecting projects to be funded, grantees shall give priority to 
projects that can award contracts based on bids within 120 days from 
the date the funds are made available to the grantee.

                       homeless assistance grants

    For an additional amount for ``Homeless Assistance Grants'', for 
the emergency shelter grants program as authorized under subtitle B of 
tile IV of the McKinney-Vento Homeless Assistance Act, $1,500,000,000: 
Provided, That in addition to homeless prevention activities specified 
in the emergency shelter grant program, funds provided under this 
heading may be used for the provision of short-term or medium-term 
rental assistance; housing relocation and stabilization services 
including housing search, mediation or outreach to property owners, 
legal services, credit repair, resolution of security or utility 
deposits, utility payments, rental assistance for a final month at a 
location, and moving costs assistance; or other appropriate 
homelessness prevention activities; Provided further, That these funds 
shall be allocated pursuant to the formula authorized by section 413 of 
such Act: Provided further, That the Secretary of Housing and Urban 
Development may waive statutory or regulatory provisions related to the 
obligation and use of emergency shelter grant funds necessary to 
facilitate the timely expenditure of funds.

            Office of Healthy Homes and Lead Hazard Control

                         lead hazard reduction

     For an additional amount for ``Lead Hazard Reduction'', for the 
Lead Hazard Reduction Program as authorized by section 1011 of the 
Residential Lead-Based Paint Hazard Reduction Act of 1992, 
$100,000,000: Provided, That for purposes of environmental review, 
pursuant to the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.) and other provisions of law that further the purposes of 
such Act, a grant under the Healthy Homes Initiative, Operation Lead 
Elimination Action Plan (LEAP), or the Lead Technical Studies program 
under this heading or under prior appropriations Acts for such purposes 
under this heading, shall be considered to be funds for a special 
project for purposes of section 305(e) of the Multifamily Housing 
Property Disposition Reform Act of 1994: Provided further, That of the 
total amount made available under this heading, $30,000,000 shall be 
made available on a competitive basis for areas with the highest lead 
paint abatement needs.

                     GENERAL PROVISIONS, THIS TITLE

SEC. 12001. MAINTENANCE OF EFFORT AND REPORTING REQUIREMENTS TO ENSURE 
              TRANSPARENCY AND ACCOUNTABILITY.

    (a) Maintenance of Effort.--Not later than 30 days after the date 
of enactment of this Act, for each amount that is distributed to a 
State or agency thereof from an appropriation in this Act for a covered 
program, the Governor of the State shall certify that the State will 
maintain its effort with regard to State funding for the types of 
projects that are funded by the appropriation. As part of this 
certification, the Governor shall submit to the covered agency a 
statement identifying the amount of funds the State planned to expend 
as of the date of enactment of this Act from non-Federal sources in the 
period beginning on the date of enactment of this Act through September 
30, 2010, for the types of projects that are funded by the 
appropriation.
    (b) Periodic Reports.--
            (1) In general.--Notwithstanding any other provision of 
        law, each grant recipient shall submit to the covered agency 
        from which they received funding periodic reports on the use of 
        the funds appropriated in this Act for covered programs. Such 
        reports shall be collected and compiled by the covered agency 
        and transmitted to Congress.
            (2) Contents of reports.--For amounts received under each 
        covered program by a grant recipient under this Act, the grant 
        recipient shall include in the periodic reports information 
        tracking--
                    (A) the amount of Federal funds appropriated, 
                allocated, obligated, and outlayed under the 
                appropriation;
                    (B) the number of projects that have been put out 
                to bid under the appropriation and the amount of 
                Federal funds associated with such projects;
                    (C) the number of projects for which contracts have 
                been awarded under the appropriation and the amount of 
                Federal funds associated with such contracts;
                    (D) the number of projects for which work has begun 
                under such contracts and the amount of Federal funds 
                associated with such contracts;
                    (E) the number of projects for which work has been 
                completed under such contracts and the amount of 
                Federal funds associated with such contracts;
                    (F) the number of jobs created or sustained by the 
                Federal funds provided for projects under the 
                appropriation, including information on job sectors and 
                pay levels; and
                    (G) for each covered program report information 
                tracking the actual aggregate expenditures by each 
                grant recipient from non-Federal sources for projects 
                eligible for funding under the program during the 
                period beginning on the date of enactment of this Act 
                through September 30, 2010, as compared to the level of 
                such expenditures that were planned to occur during 
                such period as of the date of enactment of this Act.
            (3) Timing of reports.--Each grant recipient shall submit 
        the first of the periodic reports required under this 
        subsection not later than 30 days after the date of enactment 
        of this Act and shall submit updated reports not later than 60 
        days, 120 days, 180 days, 1 year, and 3 years after such date 
        of enactment.
    (c) Definitions.--In this section, the following definitions apply:
            (1) Covered agency.--The term ``covered agency'' means the 
        Federal Aviation Administration, the Federal Highway 
        Administration, the Federal Railroad Administration, and the 
        Federal Transit Administration of the Department of 
        Transportation.
            (2) Covered program.--The term ``covered program'' means 
        funds appropriated in this Act for ``Grants-in-Aid for 
        Airports'' to the Federal Aviation Administration; for 
        ``Highway Infrastructure Investment'' to the Federal Highway 
        Administration; for ``Capital Assistance for Intercity 
        Passenger Rail Service'' to the Federal Railroad 
        Administration; for ``Transit Capital Assistance'', ``Fixed 
        Guideway Infrastructure Investment'', and ``Capital Investment 
        Grants'' to the Federal Transit Administration.
            (3) Grant recipient.--The term ``grant recipient'' means a 
        State or other recipient of assistance provided under a covered 
        program in this Act. Such term does not include a Federal 
        department or agency.

SEC. 12002. FHA LOAN LIMITS FOR 2009.

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

SEC. 12003. GSE CONFORMING LOAN LIMITS FOR 2009.

    (a) Loan Limit Floor Based on 2008 Levels.--For mortgages 
originated during calendar year 2009, if the limitation on the maximum 
original principal obligation of a mortgage that may purchased by the 
Federal National Mortgage Association or the Federal Home Loan Mortgage 
Corporation determined under section 302(b)(2) of the Federal National 
Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) or section 
305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 
1754(a)(2)), respectively, for any size residence for any area is less 
than such maximum original principal obligation limitation that was in 
effect for such size residence for such area for 2008 pursuant to 
section 201 of the Economic Stimulus Act of 2008 (Public Law 110-185; 
122 Stat. 619), notwithstanding any other provision of law, the 
limitation on the maximum original principal obligation of a mortgage 
for such Association and Corporation for such size residence for such 
area shall be such maximum limitation in effect for such size residence 
for such area for 2008.
    (b) Discretionary Authority for Sub-Areas.--Notwithstanding any 
other provision of law, if the Director of the Federal Housing Finance 
Agency determines, for any geographic area that is smaller than an area 
for which limitations on the maximum original principal obligation of a 
mortgage are determined for the Federal National Mortgage Association 
or the Federal Home Loan Mortgage Corporation, that a higher such 
maximum original principal obligation limitation is warranted for any 
particular size or sizes of residences in such sub-area by higher 
median home prices in such sub-area, the Director may, for mortgages 
originated during 2009, increase the maximum original principal 
obligation limitation for such size or sizes of residences for such 
sub-area that is otherwise in effect (including pursuant to subsection 
(a) of this section) for such Association and Corporation, but in no 
case to an amount that exceeds the amount specified in the matter 
following the comma in section 201(a)(1)(B) of the Economic Stimulus 
Act of 2008.

SEC. 12004. FHA REVERSE MORTGAGE LOAN LIMITS FOR 2009.

    For mortgages for which the mortgagee issues credit approval for 
the borrower during calendar year 2009, the second sentence of section 
255(g) of the National Housing Act (12 U.S.C. 171520(g)) shall be 
considered to require that in no case may the benefits of insurance 
under such section 255 exceed 150 percent of the maximum dollar amount 
in effect under the sixth sentence of section 305(a)(2) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).

              TITLE XIII--STATE FISCAL STABILIZATION FUND

                        DEPARTMENT OF EDUCATION

                    State Fiscal Stabilization Fund

    For necessary expenses for a State Fiscal Stabilization Fund, 
$79,000,000,000, which shall be administered by the Department of 
Education, of which $39,500,000,000 shall become available on July 1, 
2009 and remain available through September 30, 2010, and 
$39,500,000,000 shall become available on July 1, 2010 and remain 
available through September 30, 2011: Provided, That the provisions of 
section 1103 of this Act shall not apply to the funds reserved under 
section 13001(c) of this title: Provided further, That the amount made 
available under section 13001(b) of this title for administration and 
oversight shall take the place of the set-aside under section 1106 of 
this Act.

                     GENERAL PROVISIONS, THIS TITLE

SEC. 13001. ALLOCATIONS.

    (a) Outlying Areas.--From each year's appropriation to carry out 
this title, the Secretary of Education shall first allocate one half of 
1 percent to the outlying areas on the basis of their respective needs, 
as determined by the Secretary, for activities consistent with this 
title under such terms and conditions as the Secretary may determine.
    (b) Administration and Oversight.--The Secretary may, in addition, 
reserve up to $12,500,000 each year for administration and oversight of 
this title, including for program evaluation.
    (c) Reservation for Additional Programs.--After reserving funds 
under subsections (a) and (b), the Secretary shall reserve 
$7,500,000,000 each year for grants under sections 13006 and 13007.
    (d) State Allocations.--After carrying out subsections (a), (b), 
and (c), the Secretary shall allocate the remaining funds made 
available to carry out this title to the States as follows:
            (1) 61 percent on the basis of their relative population of 
        individuals aged 5 through 24.
            (2) 39 percent on the basis of their relative total 
        population.
    (e) State Grants.--From funds allocated under subsection (d), the 
Secretary shall make grants to the Governor of each State.
    (f) Reallocation.--The Governor shall return to the Secretary any 
funds received under subsection (e) that the Governor does not obligate 
within one year of receiving a grant, and the Secretary shall 
reallocate such funds to the remaining States in accordance with 
subsection (d).

SEC. 13002. STATE USES OF FUNDS.

    (a) Education Fund.--
            (1) In general.--For each fiscal year, the Governor shall 
        use at least 61 percent of the State's allocation under section 
        13001 for the support of elementary, secondary, and 
        postsecondary education.
            (2) Restoring 2008 state support for education.--
                    (A) In general.--The Governor shall first use the 
                funds described in paragraph (1)--
                            (i) to provide the amount of funds, through 
                        the State's principal elementary and secondary 
                        funding formula, that is needed to restore 
                        State support for elementary and secondary 
                        education to the fiscal year 2008 level; and
                            (ii) to provide the amount of funds to 
                        public institutions of higher education in the 
                        State that is needed to restore State support 
                        for postsecondary education to the fiscal year 
                        2008 level.
                    (B) Shortfall.--If the Governor determines that the 
                amount of funds available under paragraph (1) is 
                insufficient to restore State support for education to 
                the levels described in clauses (i) and (ii) of 
                subparagraph (A), the Governor shall allocate those 
                funds between those clauses in proportion to the 
                relative shortfall in State support for the education 
                sectors described in those clauses.
            (3) Subgrants to improve basic programs operated by local 
        educational agencies.--After carrying out paragraph (2), the 
        Governor shall use any funds remaining under paragraph (1) to 
        provide local educational agencies in the State with subgrants 
        based on their relative shares of funding under part A of title 
        I of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6311 et seq.) for the most recent year for which data 
        are available.
    (b) Other Government Services.--For each fiscal year, the Governor 
may use up to 39 percent of the State's allocation under section 1301 
for public safety and other government services, which may include 
assistance for elementary and secondary education and public 
institutions of higher education.

SEC. 13003. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES.

    (a) In General.--A local educational agency that receives funds 
under this title may use the funds for any activity authorized by the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) 
(``ESEA''), the Individuals with Disabilities Education Act (20 U.S.C. 
1400 et seq.) (``IDEA''), or the Carl D. Perkins Career and Technical 
Education Act of 2006 (20 U.S.C. 2301 et seq.) (``the Perkins Act'').
    (b) Prohibition.--A local educational agency may not use funds 
received under this title for capital projects unless authorized by 
ESEA, IDEA, or the Perkins Act.

SEC. 13004. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.

    (a) In General.--A public institution of higher education that 
receives funds under this title shall use the funds for education and 
general expenditures, and in such a way as to mitigate the need to 
raise tuition and fees for in-State students.
    (b) Prohibition.--An institution of higher education may not use 
funds received under this title to increase its endowment.
    (c) Additional Prohibition.--An institution of higher education may 
not use funds received under this title for construction, renovation, 
or facility repair.

SEC. 13005. STATE APPLICATIONS.

    (a) In General.--The Governor of a State desiring to receive an 
allocation under section 13001 shall submit an annual application at 
such time, in such manner, and containing such information as the 
Secretary may reasonably require.
    (b) First Year Application.--In the first of such applications, the 
Governor shall--
            (1) include the assurances described in subsection (e);
            (2) provide baseline data that demonstrates the State's 
        current status in each of the areas described in such 
        assurances; and
            (3) describe how the State intends to use its allocation.
    (c) Second Year Application.--In the second year application, the 
Governor shall--
            (1) include the assurances described in subsection (e); and
            (2) describe how the State intends to use its allocation.
    (d) Incentive Grant Application.--The Governor of a State seeking a 
grant under section 13006 shall--
            (1) submit an application for consideration;
            (2) describe the status of the State's progress in each of 
        the areas described in subsection (e), and the strategies the 
        State is employing to help ensure that high-need students in 
        the State continue making progress towards meeting the State's 
        student academic achievement standards;
            (3) describe how the State would use its grant funding, 
        including how it will allocate the funds to give priority to 
        high-need schools and local educational agencies; and
            (4) include a plan for evaluating its progress in closing 
        achievement gaps.
    (e) Assurances.--An application under subsection (b) or (c) shall 
include the following assurances:
            (1) Maintenance of effort.--
                    (A) Elementary and secondary education.--The State 
                will, in each of fiscal years 2009 and 2010, maintain 
                State support for elementary and secondary education at 
                least at the level of such support in fiscal year 2006.
                    (B) Higher education.--The State will, in each of 
                fiscal years 2009 and 2010, maintain State support for 
                public institutions of higher education (not including 
                support for capital projects or for research and 
                development) at least at the level of such support in 
                fiscal year 2006.
            (2) Achieving equity in teacher distribution.--The State 
        will take actions to comply with section 1111(b)(8)(C) of ESEA 
        (20 U.S.C. 6311(b)(8)(C)) in order to address inequities in the 
        distribution of teachers between high-and low-poverty schools, 
        and to ensure that low-income and minority children are not 
        taught at higher rates than other children by inexperienced, 
        unqualified, or out-of-field teachers.
            (3) Improving collection and use of data.--The State will 
        establish a longitudinal data system that includes the elements 
        described in section 6401(e)(2)(D) of the America COMPETES Act 
        (20 U.S.C. 9871).
            (4) Assessments.--The State--
                    (A) will enhance the quality of academic 
                assessments described in section 1111(b)(3) of ESEA (20 
                U.S.C. 6311(b)(3)) through activities such as those 
                described in section 6112(a) of such Act (20 U.S.C. 
                7301a(a)); and
                    (B) will comply with the requirements of paragraphs 
                3(C)(ix) and (6) of section 1111(b) of ESEA (20 U.S.C. 
                6311(b)) and section 612(a)(16) of IDEA (20 U.S.C. 
                1412(a)(16)) related to the inclusion of children with 
                disabilities and limited English proficient students in 
                State assessments, the development of valid and 
                reliable assessments for those students, and the 
                provision of accommodations that enable their 
                participation in State assessments.

SEC. 13006. STATE INCENTIVE GRANTS.

    (a) In General.--From the total amount reserved under section 
13001(c) that is not used for section 13007, the Secretary shall, in 
fiscal year 2010, make grants to States that have made significant 
progress in meeting the objectives of paragraphs (2), (3), and (4) of 
section 13005(e).
    (b) Basis for Grants.--The Secretary shall determine which States 
receive grants under this section, and the amount of those grants, on 
the basis of information provided in State applications under section 
13005 and such other criteria as the Secretary determines appropriate.
    (c) Subgrants to Local Educational Agencies.--Each State receiving 
a grant under this section shall use at least 50 percent of the grant 
to provide local educational agencies in the State with subgrants based 
on their relative shares of funding under part A of title I of ESEA (20 
U.S.C. 6311 et seq.) for the most recent year.

SEC. 13007. INNOVATION FUND.

    (a) In General.--
            (1) Program established.--From the total amount reserved 
        under section 13001(c), the Secretary may reserve up to 
        $325,000,000 each year to establish an Innovation Fund, which 
        shall consist of academic achievement awards that recognize 
        States, local educational agencies, or schools that meet the 
        requirements described in subsection (b).
            (2) Basis for awards.--The Secretary shall make awards to 
        States, local educational agencies, or schools that have made 
        significant gains in closing the achievement gap as described 
        in subsection (b)(1)--
                    (A) to allow such States, local educational 
                agencies, and schools to expand their work and serve as 
                models for best practices;
                    (B) to allow such States, local educational 
                agencies, and schools to work in partnership with the 
                private sector and the philanthropic community; and
                    (C) to identify and document best practices that 
                can be shared, and taken to scale based on demonstrated 
                success.
    (b) Eligibility.--To be eligible for such an award, a State, local 
educational agency, or school shall--
            (1) have significantly closed the achievement gaps between 
        groups of students described in section 1111(b)(2) of ESEA (20 
        U.S.C. 6311(b)(2));
            (2) have exceeded the State's annual measurable objectives 
        consistent with such section 1111(b)(2) for 2 or more 
        consecutive years or have demonstrated success in significantly 
        increasing student academic achievement for all groups of 
        students described in such section through another measure, 
        such as measures described in section 1111(c)(2) of ESEA;
            (3) have made significant improvement in other areas, such 
        as graduation rates or increased recruitment and placement of 
        high-quality teachers and school leaders, as demonstrated with 
        meaningful data; and
            (4) demonstrate that they have established partnerships 
        with the private sector, which may include philanthropic 
        organizations, and that the private sector will provide 
        matching funds in order to help bring results to scale.

SEC. 13008. STATE REPORTS.

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

SEC. 13009. EVALUATION.

    The Comptroller General of the United States shall conduct 
evaluations of the programs under sections 13006 and 13007 which shall 
include, but not be limited to, the criteria used for the awards made, 
the States selected for awards, award amounts, how each State used the 
award received, and the impact of this funding on the progress made 
toward closing achievement gaps.

SEC. 13010. SECRETARY'S REPORT TO CONGRESS.

    The Secretary shall submit a report to the Committee on Education 
and Labor of the House of Representatives, the Committee on Health, 
Education, Labor, and Pensions of the Senate, and the Committees on 
Appropriations of the House of Representatives and of the Senate, not 
less than 6 months following the submission of State reports, that 
evaluates the information provided in the State reports under section 
13008.

SEC. 13011. PROHIBITION ON PROVISION OF CERTAIN ASSISTANCE.

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

SEC. 13012. DEFINITIONS.

    Except as otherwise provided in this title, as used in this title--
            (1) the term ``institution of higher education'' has the 
        meaning given such term in section 101 of the Higher Education 
        Act of 1965 (20 U.S.C. 1001);
            (2) the term ``Secretary'' means the Secretary of 
        Education;
            (3) the term ``State'' means each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico; and
            (4) any other term used in this title that is defined in 
        section 9101 of ESEA (20 U.S.C. 7801) shall have the meaning 
        given the term in that section.

                      DIVISION B--OTHER PROVISIONS

                        TITLE I--TAX PROVISIONS

SEC. 1000. SHORT TITLE, ETC.

    (a) Short Title.--This title may be cited as the ``American 
Recovery and Reinvestment Tax Act of 2009''.
    (b) Reference.--Except as otherwise expressly provided, whenever in 
this title an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Internal 
Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this title is as 
follows:

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.
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

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.

                      Subtitle A--Making Work Pay

SEC. 1001. MAKING WORK PAY CREDIT.

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

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

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
subtitle for the taxable year an amount equal to the lesser of--
            ``(1) 6.2 percent of earned income of the taxpayer, or
            ``(2) $500 ($1,000 in the case of a joint return).
    ``(b) Limitation Based on Modified Adjusted Gross Income.--
            ``(1) In general.--The amount allowable as a credit under 
        subsection (a) (determined without regard to this paragraph) 
        for the taxable year shall be reduced (but not below zero) by 2 
        percent of so much of the taxpayer's modified adjusted gross 
        income as exceeds $75,000 ($150,000 in the case of a joint 
        return).
            ``(2) Modified adjusted gross income.--For purposes of 
        subparagraph (A), the term `modified adjusted gross income' 
        means the adjusted gross income of the taxpayer for the taxable 
        year increased by any amount excluded from gross income under 
        section 911, 931, or 933.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Eligible individual.--The term `eligible individual' 
        means any individual other than--
                    ``(A) any nonresident alien individual,
                    ``(B) any individual with respect to whom a 
                deduction under section 151 is allowable to another 
                taxpayer for a taxable year beginning in the calendar 
                year in which the individual's taxable year begins, and
                    ``(C) an estate or trust.
        Such term shall not include any individual unless the 
        requirements of section 32(c)(1)(E) are met with respect to 
        such individual.
            ``(2) Earned income.--The term `earned income' has the 
        meaning given such term by section 32(c)(2), except that such 
        term shall not include net earnings from self-employment which 
        are not taken into account in computing taxable income. For 
        purposes of the preceding sentence, any amount excluded from 
        gross income by reason of section 112 shall be treated as 
        earned income which is taken into account in computing taxable 
        income for the taxable year.
    ``(d) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2010.''.
    (b)  Treatment of Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possession.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States with a mirror code tax system amounts equal to 
                the loss to that possession by reason of the amendments 
                made by this section with respect to taxable years 
                beginning in 2009 and 2010. Such amounts shall be 
                determined by the Secretary of the Treasury based on 
                information provided by the government of the 
                respective possession.
                    (B) Other possessions.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States which does not have a mirror code tax system 
                amounts estimated by the Secretary of the Treasury as 
                being equal to the aggregate benefits that would have 
                been provided to residents of such possession by reason 
                of the amendments made by this section for taxable 
                years beginning in 2009 and 2010 if a mirror code tax 
                system had been in effect in such possession. The 
                preceding sentence shall not apply with respect to any 
                possession of the United States unless such possession 
                has a plan, which has been approved by the Secretary of 
                the Treasury, under which such possession will promptly 
                distribute such payments to the residents of such 
                possession.
            (2) Coordination with credit allowed against united states 
        income taxes.--No credit shall be allowed against United States 
        income taxes for any taxable year under section 36A of the 
        Internal Revenue Code of 1986 (as added by this section) to any 
        person--
                    (A) to whom a credit is allowed against taxes 
                imposed by the possession by reason of the amendments 
                made by this section for such taxable year, or
                    (B) who is eligible for a payment under a plan 
                described in paragraph (1)(B) with respect to such 
                taxable year.
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For purposes 
                of this subsection, the term ``possession of the United 
                States'' includes the Commonwealth of Puerto Rico and 
                the Commonwealth of the Northern Mariana Islands.
                    (B) Mirror code tax system.--For purposes of this 
                subsection, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324(b)(2) of title 31, United States Code, the 
                payments under this subsection shall be treated in the 
                same manner as a refund due from the credit allowed 
                under section 36A of the Internal Revenue Code of 1986 
                (as added by this section).
    (c) Refunds Disregarded in the Administration of Federal Programs 
and Federally Assisted Programs.--Any credit or refund allowed or made 
to any individual by reason of section 36A of the Internal Revenue Code 
of 1986 (as added by this section) or by reason of subsection (b) of 
this section shall not be taken into account as income and shall not be 
taken into account as resources for the month of receipt and the 
following 2 months, for purposes of determining the eligibility of such 
individual or any other individual for benefits or assistance, or the 
amount or extent of benefits or assistance, under any Federal program 
or under any State or local program financed in whole or in part with 
Federal funds.
    (d) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) is amended by inserting ``36A,'' 
        after ``36,''.
            (2) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``36A,'' after ``36,''.
            (3) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 is amended by inserting after the 
        item relating to section 36 the following new item:

``Sec. 36A. Making work pay credit.''.
    (e) Effective Date.--This section shall apply to taxable years 
beginning after December 31, 2008.

      Subtitle B--Additional Tax Relief for Families With Children

SEC. 1101. INCREASE IN EARNED INCOME TAX CREDIT.

    (a) In General.--Subsection (b) of section 32 is amended by adding 
at the end the following new paragraph:
            ``(3) Special rules for 2009 and 2010.--In the case of any 
        taxable year beginning in 2009 or 2010--
                    ``(A) Increased credit percentage for 3 or more 
                qualifying children.--In the case of a taxpayer with 3 
                or more qualifying children, the credit percentage is 
                45 percent.
                    ``(B) Reduction of marriage penalty.--
                            ``(i) In general.--The dollar amount in 
                        effect under paragraph (2)(B) shall be $5,000.
                            ``(ii) Inflation adjustment.--In the case 
                        of any taxable year beginning in 2010, the 
                        $5,000 amount in clause (i) shall be increased 
                        by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost of living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins determined by 
                                substituting `calendar year 2008' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                            ``(iii) Rounding.--Subparagraph (A) of 
                        subsection (j)(2) shall apply after taking into 
                        account any increase under clause (ii).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 1102. INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT.

    (a) In General.--Paragraph (4) of section 24(d) is amended to read 
as follows:
            ``(4) Special rule for 2009 and 2010.--Notwithstanding 
        paragraph (3), in the case of any taxable year beginning in 
        2009 or 2010, the dollar amount in effect for such taxable year 
        under paragraph (1)(B)(i) shall be zero.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

              Subtitle C--American Opportunity Tax Credit

SEC. 1201. AMERICAN OPPORTUNITY TAX CREDIT.

    (a) In General.--Section 25A (relating to Hope scholarship credit) 
is amended by redesignating subsection (i) as subsection (j) and by 
inserting after subsection (h) the following new subsection:
    ``(i) American Opportunity Tax Credit.--In the case of any taxable 
year beginning in 2009 or 2010--
            ``(1) Increase in credit.--The Hope Scholarship Credit 
        shall be an amount equal to the sum of--
                    ``(A) 100 percent of so much of the qualified 
                tuition and related expenses paid by the taxpayer 
                during the taxable year (for education furnished to the 
                eligible student during any academic period beginning 
                in such taxable year) as does not exceed $2,000, plus
                    ``(B) 25 percent of such expenses so paid as 
                exceeds $2,000 but does not exceed $4,000.
            ``(2) Credit allowed for first 4 years of post-secondary 
        education.--Subparagraphs (A) and (C) of subsection (b)(2) 
        shall be applied by substituting `4' for `2'.
            ``(3) Qualified tuition and related expenses to include 
        required course materials.--Subsection (f)(1)(A) shall be 
        applied by substituting `tuition, fees, and course materials' 
        for `tuition and fees'.
            ``(4) Increase in agi limits for hope scholarship credit.--
        In lieu of applying subsection (d) with respect to the Hope 
        Scholarship Credit, such credit (determined without regard to 
        this paragraph) shall be reduced (but not below zero) by the 
        amount which bears the same ratio to such credit (as so 
        determined) as--
                    ``(A) the excess of--
                            ``(i) the taxpayer's modified adjusted 
                        gross income (as defined in subsection (d)(3)) 
                        for such taxable year, over
                            ``(ii) $80,000 ($160,000 in the case of a 
                        joint return), bears to
                    ``(B) $10,000 ($20,000 in the case of a joint 
                return).
            ``(5) Credit allowed against alternative minimum tax.--In 
        the case of a taxable year to which section 26(a)(2) does not 
        apply, so much of the credit allowed under subsection (a) as is 
        attributable to the Hope Scholarship Credit shall not exceed 
        the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this subsection and sections 23, 
                25D, and 30D) and section 27 for the taxable year.
        Any reference in this section or section 24, 25, 26, 25B, 904, 
        or 1400C to a credit allowable under this subsection shall be 
        treated as a reference to so much of the credit allowable under 
        subsection (a) as is attributable to the Hope Scholarship 
        Credit.
            ``(6) Portion of credit made refundable.--40 percent of so 
        much of the credit allowed under subsection (a) as is 
        attributable to the Hope Scholarship Credit (determined after 
        application of paragraph (4) and without regard to this 
        paragraph and section 26(a)(2) or paragraph (5), as the case 
        may be) shall be treated as a credit allowable under subpart C 
        (and not allowed under subsection (a)). The preceding sentence 
        shall not apply to any taxpayer for any taxable year if such 
        taxpayer is a child to whom subsection (g) of section 1 applies 
        for such taxable year.
            ``(7) Coordination with midwestern disaster area 
        benefits.--In the case of a taxpayer with respect to whom 
        section 702(a)(1)(B) of the Heartland Disaster Tax Relief Act 
        of 2008 applies for any taxable year, such taxpayer may elect 
        to waive the application of this subsection to such taxpayer 
        for such taxable year.''.
    (b) Conforming Amendments.--
            (1) Section 24(b)(3)(B) is amended by inserting ``25A(i),'' 
        after ``23,''.
            (2) Section 25(e)(1)(C)(ii) is amended by inserting 
        ``25A(i),'' after ``24,''.
            (3) Section 26(a)(1) is amended by inserting ``25A(i),'' 
        after ``24,''.
            (4) Section 25B(g)(2) is amended by inserting ``25A(i),'' 
        after ``23,''.
            (5) Section 904(i) is amended by inserting ``25A(i),'' 
        after ``24,''.
            (6) Section 1400C(d)(2) is amended by inserting ``25A(i),'' 
        after ``24,''.
            (7) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``25A,'' before ``35''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
    (d) Application of EGTRRA Sunset.--The amendment made by subsection 
(b)(1) shall be subject to title IX of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 in the same manner as the provision 
of such Act to which such amendment relates.
    (e) Treasury Studies Regarding Education Incentives.--
            (1) Study regarding coordination with non-tax educational 
        incentives.--The Secretary of the Treasury, or the Secretary's 
        delegate, shall study how to coordinate the credit allowed 
        under section 25A of the Internal Revenue Code of 1986 with the 
        Federal Pell Grant program under section 401 of the Higher 
        Education Act of 1965.
            (2) Study regarding imposition of community service 
        requirements.--The Secretary of the Treasury, or the 
        Secretary's delegate, shall study the feasibility of requiring 
        students to perform community service as a condition of taking 
        their tuition and related expenses into account under section 
        25A of the Internal Revenue Code of 1986.
            (3) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Secretary of the Treasury, or the 
        Secretary's delegate, shall report to Congress on the results 
        of the studies conducted under this paragraph.

                     Subtitle D--Housing Incentives

SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST-TIME HOMEBUYER CREDIT.

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

SEC. 1302. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME 
              HOUSING GRANTS.

    Subsection (i) of section 42 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph:
            ``(9) Coordination with low-income housing grants.--
                    ``(A) Reduction in state housing credit ceiling for 
                low-income housing grants received in 2009.--For 
                purposes of this section, the amounts described in 
                clauses (i) through (iv) of subsection (h)(3)(C) with 
                respect to any State for 2009 shall each be reduced by 
                so much of such amount as is taken into account in 
                determining the amount of any grant to such State under 
                section 1711 of the American Recovery and Reinvestment 
                Tax Act of 2009.
                    ``(B) Special rule for basis.--Basis of a qualified 
                low-income building shall not be reduced by the amount 
                of any grant described in subparagraph (A).''.

                Subtitle E--Tax Incentives for Business

                PART 1--TEMPORARY INVESTMENT INCENTIVES

SEC. 1401. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009.

    (a) In General.--Paragraph (2) of section 168(k) is amended--
            (1) by striking ``January 1, 2010'' and inserting ``January 
        1, 2011'', and
            (2) by striking ``January 1, 2009'' each place it appears 
        and inserting ``January 1, 2010''.
    (b) Conforming Amendments.--
            (1) The heading for subsection (k) of section 168 is 
        amended by striking ``January 1, 2009'' and inserting ``January 
        1, 2010''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) is 
        amended by striking ``pre-january 1, 2009'' and inserting 
        ``pre-january 1, 2010''.
            (3) Subparagraph (D) of section 168(k)(4) is amended--
                    (A) by striking ``and'' at the end of clause (i),
                    (B) by redesignating clause (ii) as clause (v), and
                    (C) by inserting after clause (i) the following new 
                clauses:
                            ``(ii) `April 1, 2008' shall be substituted 
                        for `January 1, 2008' in subparagraph 
                        (A)(iii)(I) thereof,
                            ``(iii) `January 1, 2009' shall be 
                        substituted for `January 1, 2010' each place it 
                        appears,
                            ``(iv) `January 1, 2010' shall be 
                        substituted for `January 1, 2011' in 
                        subparagraph (A)(iv) thereof, and''.
            (4) Subparagraph (B) of section 168(l)(5) is amended by 
        striking ``January 1, 2009'' and inserting ``January 1, 2010''.
            (5) Subparagraph (B) of section 1400N(d)(3) is amended by 
        striking ``January 1, 2009'' and inserting ``January 1, 2010''.
    (c) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to property placed 
        in service after December 31, 2008, in taxable years ending 
        after such date.
            (2) Technical amendment.--Section 168(k)(4)(D)(ii) of the 
        Internal Revenue Code of 1986, as added by subsection 
        (b)(3)(C), shall apply to taxable years ending after March 31, 
        2008.

SEC. 1402. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN 
              DEPRECIABLE BUSINESS ASSETS.

    (a) In General.--Paragraph (7) of section 179(b) is amended--
            (1) by striking ``2008'' and inserting ``2008, or 2009'', 
        and
            (2) by striking ``2008'' in the heading thereof and 
        inserting ``2008, and 2009''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

              PART 2--5-YEAR CARRYBACK OF OPERATING LOSSES

SEC. 1411. 5-YEAR CARRYBACK OF OPERATING LOSSES.

    (a) In General.--Subparagraph (H) of section 172(b)(1) is amended 
to read as follows:
                    ``(H) Carryback for 2008 and 2009 net operating 
                losses.--
                            ``(i) In general.--In the case of an 
                        applicable 2008 or 2009 net operating loss with 
                        respect to which the taxpayer has elected the 
                        application of this subparagraph--
                                    ``(I) such net operating loss shall 
                                be reduced by 10 percent of such loss 
                                (determined without regard to this 
                                subparagraph),
                                    ``(II) subparagraph (A)(i) shall be 
                                applied by substituting any whole 
                                number elected by the taxpayer which is 
                                more than 2 and less than 6 for `2',
                                    ``(III) subparagraph (E)(ii) shall 
                                be applied by substituting the whole 
                                number which is one less than the whole 
                                number substituted under subclause (II) 
                                for `2', and
                                    ``(IV) subparagraph (F) shall not 
                                apply.
                            ``(ii) Applicable 2008 or 2009 net 
                        operating loss.--For purposes of this 
                        subparagraph, the term `applicable 2008 or 2009 
                        net operating loss' means--
                                    ``(I) the taxpayer's net operating 
                                loss for any taxable year ending in 
                                2008 or 2009, or
                                    ``(II) if the taxpayer elects to 
                                have this subclause apply in lieu of 
                                subclause (I), the taxpayer's net 
                                operating loss for any taxable year 
                                beginning in 2008 or 2009.
                            ``(iii) Election.--Any election under this 
                        subparagraph shall be made in such manner as 
                        may be prescribed by the Secretary, and shall 
                        be made by the due date (including extension of 
                        time) for filing the taxpayer's return for the 
                        taxable year of the net operating loss. Any 
                        such election, once made, shall be irrevocable.
                            ``(iv) Coordination with alternative tax 
                        net operating loss deduction.--In the case of a 
                        taxpayer who elects to have clause (ii)(II) 
                        apply, section 56(d)(1)(A)(ii) shall be applied 
                        by substituting `ending during 2001 or 2002 or 
                        beginning during 2008 or 2009' for `ending 
                        during 2001, 2002, 2008, or 2009'.''.
    (b) Alternative Tax Net Operating Loss Deduction.--Subclause (I) of 
section 56(d)(1)(A)(ii) is amended to read as follows:
                                    ``(I) the amount of such deduction 
                                attributable to the sum of carrybacks 
                                of net operating losses from taxable 
                                years ending during 2001, 2002, 2008, 
                                or 2009 and carryovers of net operating 
                                losses to such taxable years, or''.
    (c) Loss From Operations of Life Insurance Companies.--Subsection 
(b) of section 810 is amended by adding at the end the following new 
paragraph:
            ``(4) Carryback for 2008 and 2009 losses.--
                    ``(A) In general.--In the case of an applicable 
                2008 or 2009 loss from operations with respect to which 
                the taxpayer has elected the application of this 
                paragraph--
                            ``(i) such loss from operations shall be 
                        reduced by 10 percent of such loss (determined 
                        without regard to this paragraph), and
                            ``(ii) paragraph (1)(A) shall be applied, 
                        at the election of the taxpayer, by 
                        substituting `5' or `4' for `3'.
                    ``(B) Applicable 2008 or 2009 loss from 
                operations.--For purposes of this paragraph, the term 
                `applicable 2008 or 2009 loss from operations' means--
                            ``(i) the taxpayer's loss from operations 
                        for any taxable year ending in 2008 or 2009, or
                            ``(ii) if the taxpayer elects to have this 
                        clause apply in lieu of clause (i), the 
                        taxpayer's loss from operations for any taxable 
                        year beginning in 2008 or 2009.
                    ``(C) Election.--Any election under this paragraph 
                shall be made in such manner as may be prescribed by 
                the Secretary, and shall be made by the due date 
                (including extension of time) for filing the taxpayer's 
                return for the taxable year of the loss from 
                operations. Any such election, once made, shall be 
                irrevocable.
                    ``(D) Coordination with alternative tax net 
                operating loss deduction.--In the case of a taxpayer 
                who elects to have subparagraph (B)(ii) apply, section 
                56(d)(1)(A)(ii) shall be applied by substituting 
                `ending during 2001 or 2002 or beginning during 2008 or 
                2009' for `ending during 2001, 2002, 2008, or 2009'.''.
    (d) Conforming Amendment.--Section 172 is amended by striking 
subsection (k).
    (e) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall apply to 
        net operating losses arising in taxable years ending after 
        December 31, 2007.
            (2) Alternative tax net operating loss deduction.--The 
        amendment made by subsection (b) shall apply to taxable years 
        ending after 1997.
            (3) Loss from operations of life insurance companies.--The 
        amendment made by subsection (d) shall apply to losses from 
        operations arising in taxable years ending after December 31, 
        2007.
            (4) Transitional rule.--In the case of a net operating loss 
        (or, in the case of a life insurance company, a loss from 
        operations) for a taxable year ending before the date of the 
        enactment of this Act--
                    (A) any election made under section 172(b)(3) or 
                810(b)(3) of the Internal Revenue Code of 1986 with 
                respect to such loss may (notwithstanding such section) 
                be revoked before the applicable date,
                    (B) any election made under section 172(b)(1)(H) or 
                810(b)(4) of such Code with respect to such loss shall 
                (notwithstanding such section) be treated as timely 
                made if made before the applicable date, and
                    (C) any application under section 6411(a) of such 
                Code with respect to such loss shall be treated as 
                timely filed if filed before the applicable date.
        For purposes of this paragraph, the term ``applicable date'' 
        means the date which is 60 days after the date of the enactment 
        of this Act.

SEC. 1412. EXCEPTION FOR TARP RECIPIENTS.

    The amendments made by this part shall not apply to--
            (1) any taxpayer if--
                    (A) the Federal Government acquires, at any time, 
                an equity interest in the taxpayer pursuant to the 
                Emergency Economic Stabilization Act of 2008, or
                    (B) the Federal Government acquires, at any time, 
                any warrant (or other right) to acquire any equity 
                interest with respect to the taxpayer pursuant to such 
                Act,
            (2) the Federal National Mortgage Association and the 
        Federal Home Loan Mortgage Corporation, and
            (3) any taxpayer which at any time in 2008 or 2009 is a 
        member of the same affiliated group (as defined in section 1504 
        of the Internal Revenue Code of 1986, determined without regard 
        to subsection (b) thereof) as a taxpayer described in paragraph 
        (1) or (2).

                    PART 3--INCENTIVES FOR NEW JOBS

SEC. 1421. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED 
              YOUTH.

    (a) In General.--Subsection (d) of section 51 is amended by adding 
at the end the following new paragraph:
            ``(14) Credit allowed for unemployed veterans and 
        disconnected youth hired in 2009 or 2010.--
                    ``(A) In general.--Any unemployed veteran or 
                disconnected youth who begins work for the employer 
                during 2009 or 2010 shall be treated as a member of a 
                targeted group for purposes of this subpart.
                    ``(B) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Unemployed veteran.--The term 
                        `unemployed veteran' means any veteran (as 
                        defined in paragraph (3)(B), determined without 
                        regard to clause (ii) thereof) who is certified 
                        by the designated local agency as--
                                    ``(I) having been discharged or 
                                released from active duty in the Armed 
                                Forces during 2008, 2009, or 2010, and
                                    ``(II) being in receipt of 
                                unemployment compensation under State 
                                or Federal law for not less than 4 
                                weeks during the 1-year period ending 
                                on the hiring date.
                            ``(ii) Disconnected youth.--The term 
                        `disconnected youth' means any individual who 
                        is certified by the designated local agency--
                                    ``(I) as having attained age 16 but 
                                not age 25 on the hiring date,
                                    ``(II) as not regularly attending 
                                any secondary, technical, or post-
                                secondary school during the 6-month 
                                period preceding the hiring date,
                                    ``(III) as not regularly employed 
                                during such 6-month period, and
                                    ``(IV) as not readily employable by 
                                reason of lacking a sufficient number 
                                of basic skills.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after December 31, 
2008.

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.

    (a) Findings.--Congress finds as follows:
            (1) The delegation of authority to the Secretary of the 
        Treasury under section 382(m) of the Internal Revenue Code of 
        1986 does not authorize the Secretary to provide exemptions or 
        special rules that are restricted to particular industries or 
        classes of taxpayers.
            (2) Internal Revenue Service Notice 2008-83 is inconsistent 
        with the congressional intent in enacting such section 382(m).
            (3) The legal authority to prescribe Internal Revenue 
        Service Notice 2008-83 is doubtful.
            (4) However, as taxpayers should generally be able to rely 
        on guidance issued by the Secretary of the Treasury legislation 
        is necessary to clarify the force and effect of Internal 
        Revenue Service Notice 2008-83 and restore the proper 
        application under the Internal Revenue Code of 1986 of the 
        limitation on built-in losses following an ownership change of 
        a bank.
    (b) Determination of Force and Effect of Internal Revenue Service 
Notice 2008-83 Exempting Banks From Limitation on Certain Built-in 
Losses Following Ownership Change.--
            (1) In general.--Internal Revenue Service Notice 2008-83--
                    (A) shall be deemed to have the force and effect of 
                law with respect to any ownership change (as defined in 
                section 382(g) of the Internal Revenue Code of 1986) 
                occurring on or before January 16, 2009, and
                    (B) shall have no force or effect with respect to 
                any ownership change after such date.
            (2) Binding contracts.--Notwithstanding paragraph (1), 
        Internal Revenue Service Notice 2008-83 shall have the force 
        and effect of law with respect to any ownership change (as so 
        defined) which occurs after January 16, 2009 if such change--
                    (A) is pursuant to a written binding contract 
                entered into on or before such date, or
                    (B) is pursuant to a written agreement entered into 
                on or before such date and such agreement was described 
                on or before such date in a public announcement or in a 
                filing with the Securities and Exchange Commission 
                required by reason of such ownership change.

       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.

    (a) In General.--Subsection (b) of section 265 is amended by adding 
at the end the following new paragraph:
            ``(7) De minimis exception for bonds issued during 2009 or 
        2010.--
                    ``(A) In general.--In applying paragraph (2)(A), 
                there shall not be taken into account tax-exempt 
                obligations issued during 2009 or 2010.
                    ``(B) Limitation.--The amount of tax-exempt 
                obligations not taken into account by reason of 
                subparagraph (A) shall not exceed 2 percent of the 
                amount determined under paragraph (2)(B).
                    ``(C) Refundings.--For purposes of this paragraph, 
                a refunding bond (whether a current or advance 
                refunding) shall be treated as issued on the date of 
                the issuance of the refunded bond (or in the case of a 
                series of refundings, the original bond).''.
    (b) Treatment as Financial Institution Preference Item.--Clause 
(iv) of section 291(e)(1)(B) is amended by adding at the end the 
following: ``That portion of any obligation not taken into account 
under paragraph (2)(A) of section 265(b) by reason of paragraph (7) of 
such section shall be treated for purposes of this section as having 
been acquired on August 7, 1986.''.
     (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2008.

SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT 
              INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL 
              INSTITUTIONS.

    (a) In General.--Paragraph (3) of section 265(b) (relating to 
exception for certain tax-exempt obligations) is amended by adding at 
the end the following new subparagraph:
                    ``(G) Special rules for obligations issued during 
                2009 and 2010.--
                            ``(i) Increase in limitation.--In the case 
                        of obligations issued during 2009 or 2010, 
                        subparagraphs (C)(i), (D)(i), and (D)(iii)(II) 
                        shall each be applied by substituting 
                        `$30,000,000' for `$10,000,000'.
                            ``(ii) Qualified 501(c)(3) bonds treated as 
                        issued by exempt organization.--In the case of 
                        a qualified 501(c)(3) bond (as defined in 
                        section 145) issued during 2009 or 2010, this 
                        paragraph shall be applied by treating the 
                        501(c)(3) organization for whose benefit such 
                        bond was issued as the issuer.
                            ``(iii) Special rule for qualified 
                        financings.--In the case of a qualified 
                        financing issue issued during 2009 or 2010--
                                    ``(I) subparagraph (F) shall not 
                                apply, and
                                    ``(II) any obligation issued as a 
                                part of such issue shall be treated as 
                                a qualified tax-exempt obligation if 
                                the requirements of this paragraph are 
                                met with respect to each qualified 
                                portion of the issue (determined by 
                                treating each qualified portion as a 
                                separate issue issued by the qualified 
                                borrower with respect to which such 
                                portion relates).
                            ``(iv) Qualified financing issue.--For 
                        purposes of this subparagraph, the term 
                        `qualified financing issue' means any 
                        composite, pooled, or other conduit financing 
                        issue the proceeds of which are used directly 
                        or indirectly to make or finance loans to one 
                        or more ultimate borrowers each of whom is a 
                        qualified borrower.
                            ``(v) Qualified portion.--For purposes of 
                        this subparagraph, the term `qualified portion' 
                        means that portion of the proceeds which are 
                        used with respect to each qualified borrower 
                        under the issue.
                            ``(vi) Qualified borrower.--For purposes of 
                        this subparagraph, the term `qualified 
                        borrower' means a borrower which is a State or 
                        political subdivision thereof or an 
                        organization described in section 501(c)(3) and 
                        exempt from taxation under section 501(a).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2008.

SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX 
              LIMITATIONS ON TAX-EXEMPT BONDS.

    (a) Interest on Private Activity Bonds Issued During 2009 and 2010 
Not Treated as Tax Preference Item.--Subparagraph (C) of section 
57(a)(5) is amended by adding at the end a new clause:
                            ``(vi) Exception for bonds issued in 2009 
                        and 2010.--For purposes of clause (i), the term 
                        `private activity bond' shall not include any 
                        bond issued after December 31, 2008, and before 
                        January 1, 2011. For purposes of the preceding 
                        sentence, a refunding bond (whether a current 
                        or advance refunding) shall be treated as 
                        issued on the date of the issuance of the 
                        refunded bond (or in the case of a series of 
                        refundings, the original bond).''.
    (b) No Adjustment to Adjusted Current Earnings for Interest on Tax-
Exempt Bonds Issued After 2008.--Subparagraph (B) of section 56(g)(4) 
is amended by adding at the end the following new clause:
                            ``(iv) Tax exempt interest on bonds issued 
                        in 2009 and 2010.--Clause (i) shall not apply 
                        in the case of any interest on a bond issued 
                        after December 31, 2008, and before January 1, 
                        2011. For purposes of the preceding sentence, a 
                        refunding bond (whether a current or advance 
                        refunding) shall be treated as issued on the 
                        date of the issuance of the refunded bond (or 
                        in the case of a series of refundings, the 
                        original bond).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2008.

                  PART 2--TAX CREDIT BONDS FOR SCHOOLS

SEC. 1511. QUALIFIED SCHOOL CONSTRUCTION BONDS.

    (a) In General.--Subpart I of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new section:

``SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS.

    ``(a) Qualified School Construction Bond.--For purposes of this 
subchapter, the term `qualified school construction bond' means any 
bond issued as part of an issue if--
            ``(1) 100 percent of the available project proceeds of such 
        issue are to be used for the construction, rehabilitation, or 
        repair of a public school facility or for the acquisition of 
        land on which such a facility is to be constructed with part of 
        the proceeds of such issue,
            ``(2) the bond is issued by a State or local government 
        within the jurisdiction of which such school is located, and
            ``(3) the issuer designates such bond for purposes of this 
        section.
    ``(b) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds issued during any calendar year which 
may be designated under subsection (a) by any issuer shall not exceed 
the sum of--
            ``(1) the limitation amount allocated under subsection (d) 
        for such calendar year to such issuer, and
            ``(2) if such issuer is a large local educational agency 
        (as defined in subsection (e)(4)) or is issuing on behalf of 
        such an agency, the limitation amount allocated under 
        subsection (e) for such calendar year to such agency.
    ``(c) National Limitation on Amount of Bonds Designated.--There is 
a national qualified school construction bond limitation for each 
calendar year. Such limitation is--
            ``(1) $11,000,000,000 for 2009,
            ``(2) $11,000,000,000 for 2010, and
            ``(3) except as provided in subsection (f), zero after 
        2010.
    ``(d) 60 Percent of Limitation Allocated Among States.--
            ``(1) In general.--60 percent of the limitation applicable 
        under subsection (c) for any calendar year shall be allocated 
        by the Secretary among the States in proportion to the 
        respective numbers of children in each State who have attained 
        age 5 but not age 18 for the most recent fiscal year ending 
        before such calendar year. The limitation amount allocated to a 
        State under the preceding sentence shall be allocated by the 
        State to issuers within such State.
            ``(2) Minimum allocations to states.--
                    ``(A) In general.--The Secretary shall adjust the 
                allocations under this subsection for any calendar year 
                for each State to the extent necessary to ensure that 
                the sum of--
                            ``(i) the amount allocated to such State 
                        under this subsection for such year, and
                            ``(ii) the aggregate amounts allocated 
                        under subsection (e) to large local educational 
                        agencies in such State for such year,
                is not less than an amount equal to such State's 
                adjusted minimum percentage of the amount to be 
                allocated under paragraph (1) for the calendar year.
                    ``(B) Adjusted minimum percentage.--A State's 
                adjusted minimum percentage for any calendar year is 
                the product of--
                            ``(i) the minimum percentage described in 
                        section 1124(d) of the Elementary and Secondary 
                        Education Act of 1965 (20 U.S.C. 6334(d)) for 
                        such State for the most recent fiscal year 
                        ending before such calendar year, multiplied by
                            ``(ii) 1.68.
            ``(3) Allocations to certain possessions.--The amount to be 
        allocated under paragraph (1) to any possession of the United 
        States other than Puerto Rico shall be the amount which would 
        have been allocated if all allocations under paragraph (1) were 
        made on the basis of respective populations of individuals 
        below the poverty line (as defined by the Office of Management 
        and Budget). In making other allocations, the amount to be 
        allocated under paragraph (1) shall be reduced by the aggregate 
        amount allocated under this paragraph to possessions of the 
        United States.
            ``(4) Allocations for indian schools.--In addition to the 
        amounts otherwise allocated under this subsection, $200,000,000 
        for calendar year 2009, and $200,000,000 for calendar year 
        2010, shall be allocated by the Secretary of the Interior for 
        purposes of the construction, rehabilitation, and repair of 
        schools funded by the Bureau of Indian Affairs. In the case of 
        amounts allocated under the preceding sentence, Indian tribal 
        governments (as defined in section 7701(a)(40)) shall be 
        treated as qualified issuers for purposes of this subchapter.
    ``(e) 40 Percent of Limitation Allocated Among Largest School 
Districts.--
            ``(1) In general.--40 percent of the limitation applicable 
        under subsection (c) for any calendar year shall be allocated 
        under paragraph (2) by the Secretary among local educational 
        agencies which are large local educational agencies for such 
        year.
            ``(2) Allocation formula.--The amount to be allocated under 
        paragraph (1) for any calendar year shall be allocated among 
        large local educational agencies in proportion to the 
        respective amounts each such agency received for Basic Grants 
        under subpart 2 of part A of title I of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) for 
        the most recent fiscal year ending before such calendar year.
            ``(3) Allocation of unused limitation to state.--The amount 
        allocated under this subsection to a large local educational 
        agency for any calendar year may be reallocated by such agency 
        to the State in which such agency is located for such calendar 
        year. Any amount reallocated to a State under the preceding 
        sentence may be allocated as provided in subsection (d)(1).
            ``(4) Large local educational agency.--For purposes of this 
        section, the term `large local educational agency' means, with 
        respect to a calendar year, any local educational agency if 
        such agency is--
                    ``(A) among the 100 local educational agencies with 
                the largest numbers of children aged 5 through 17 from 
                families living below the poverty level, as determined 
                by the Secretary using the most recent data available 
                from the Department of Commerce that are satisfactory 
                to the Secretary, or
                    ``(B) 1 of not more than 25 local educational 
                agencies (other than those described in subparagraph 
                (A)) that the Secretary of Education determines (based 
                on the most recent data available satisfactory to the 
                Secretary) are in particular need of assistance, based 
                on a low level of resources for school construction, a 
                high level of enrollment growth, or such other factors 
                as the Secretary deems appropriate.
    ``(f) Carryover of Unused Limitation.--If for any calendar year--
            ``(1) the amount allocated under subsection (d) to any 
        State, exceeds
            ``(2) the amount of bonds issued during such year which are 
        designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State for the 
following calendar year shall be increased by the amount of such 
excess. A similar rule shall apply to the amounts allocated under 
subsection (d)(4) or (e).''.
    (b) Conforming Amendments.--
            (1) Paragraph (1) of section 54A(d) is amended by striking 
        ``or'' at the end of subparagraph (C), by inserting ``or'' at 
        the end of subparagraph (D), and by inserting after 
        subparagraph (D) the following new subparagraph:
                    ``(E) a qualified school construction bond,''.
            (2) Subparagraph (C) of section 54A(d)(2) is amended by 
        striking ``and'' at the end of clause (iii), by striking the 
        period at the end of clause (iv) and inserting ``, and'', and 
        by adding at the end the following new clause:
                            ``(v) in the case of a qualified school 
                        construction bond, a purpose specified in 
                        section 54F(a)(1).''.
            (3) The table of sections for subpart I of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 54F. Qualified school construction bonds.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2008.

SEC. 1512. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY BONDS.

    (a) In General.--Section 54E(c)(1) is amended by striking ``and 
2009'' and inserting ``and $1,400,000,000 for 2009 and 2010''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after December 31, 2008.

           PART 3--TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS

SEC. 1521. TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 is amended by 
adding at the end the following new subpart:

        ``Subpart J--Taxable Bond Option for Governmental Bonds

``Sec. 54AA. Taxable bond option for governmental bonds.

``SEC. 54AA. TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS.

    ``(a) In General.--If a taxpayer holds a taxable governmental bond 
on one or more interest payment dates of the bond during any taxable 
year, there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to the sum of the 
credits determined under subsection (b) with respect to such dates.
    ``(b) Amount of Credit.--The amount of the credit determined under 
this subsection with respect to any interest payment date for a taxable 
governmental bond is 35 percent of the amount of interest payable by 
the issuer with respect to such date.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year 
        (determined before the application of paragraph (1) for such 
        succeeding taxable year).
    ``(d) Taxable Governmental Bond.--
            ``(1) In general.--For purposes of this section, the term 
        `taxable governmental bond' means any obligation (other than a 
        private activity bond) if--
                    ``(A) the interest on such obligation would (but 
                for this section) be excludable from gross income under 
                section 103, and
                    ``(B) the issuer makes an irrevocable election to 
                have this section apply.
            ``(2) Applicable rules.--For purposes of applying paragraph 
        (1)--
                    ``(A) a taxable governmental bond shall not be 
                treated as federally guaranteed by reason of the credit 
                allowed under subsection (a) or section 6432,
                    ``(B) the yield on a taxable governmental bond 
                shall be determined without regard to the credit 
                allowed under subsection (a), and
                    ``(C) a bond shall not be treated as a taxable 
                governmental bond if the issue price has more than a de 
                minimis amount (determined under rules similar to the 
                rules of section 1273(a)(3)) of premium over the stated 
                principal amount of the bond.
    ``(e) Interest Payment Date.--For purposes of this section, the 
term `interest payment date' means any date on which the holder of 
record of the taxable governmental bond is entitled to a payment of 
interest under such bond.
    ``(f) Special Rules.--
            ``(1) Interest on taxable governmental bonds includible in 
        gross income for federal income tax purposes.--For purposes of 
        this title, interest on any taxable governmental bond shall be 
        includible in gross income.
            ``(2) Application of certain rules.--Rules similar to the 
        rules of subsections (f), (g), (h), and (i) of section 54A 
        shall apply for purposes of the credit allowed under subsection 
        (a).
    ``(g) Special Rule for Qualified Bonds Issued Before 2011.--In the 
case of a qualified bond issued before January 1, 2011--
            ``(1) Issuer allowed refundable credit.--In lieu of any 
        credit allowed under this section with respect to such bond, 
        the issuer of such bond shall be allowed a credit as provided 
        in section 6432.
            ``(2) Qualified bond.--For purposes of this subsection, the 
        term `qualified bond' means any taxable governmental bond 
        issued as part of an issue if--
                    ``(A) 100 percent of the available project proceeds 
                (as defined in section 54A) of such issue are to be 
                used for capital expenditures, and
                    ``(B) the issuer makes an irrevocable election to 
                have this subsection apply.
    ``(h) Regulations.--The Secretary may prescribe such regulations 
and other guidance as may be necessary or appropriate to carry out this 
section and section 6432.''.
    (b) Credit for Qualified Bonds Issued Before 2011.--Subchapter B of 
chapter 65, as amended by this Act, is amended by adding at the end the 
following new section:

``SEC. 6432. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER.

    ``(a) In General.--In the case of a qualified bond issued before 
January 1, 2011, the issuer of such bond shall be allowed a credit with 
respect to each interest payment under such bond which shall be payable 
by the Secretary as provided in subsection (b).
    ``(b) Payment of Credit.--The Secretary shall pay 
(contemporaneously with each interest payment date under such bond) to 
the issuer of such bond (or to any person who makes such interest 
payments on behalf of the issuer) 35 percent of the interest payable 
under such bond on such date.
    ``(c) Application of Arbitrage Rules.--For purposes of section 148, 
the yield on a qualified bond shall be reduced by the credit allowed 
under this section.
    ``(d) Interest Payment Date.--For purposes of this subsection, the 
term `interest payment date' means each date on which interest is 
payable by the issuer under the terms of the bond.
    ``(e) Qualified Bond.--For purposes of this subsection, the term 
`qualified bond' has the meaning given such term in section 54AA(h).''.
    (c) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by striking ``or 6428'' and inserting ``6428, or 
        6432,''.
            (2) Section 54A(c)(1)(B) is amended by striking ``subpart 
        C'' and inserting ``subparts C and J''.
            (3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are 
        each amended by striking ``and I'' and inserting ``, I, and 
        J''.
            (4) Section 6401(b)(1) is amended by striking ``and I'' and 
        inserting ``I, and J''.
            (5) The table of subparts for part IV of subchapter A of 
        chapter 1 is amended by adding at the end the following new 
        item:

``Subpart J. Taxable bond option for governmental bonds.''.
            (6) The table of sections for subchapter B of chapter 65, 
        as amended by this Act, is amended by adding at the end the 
        following new item:

``Sec. 6432. Credit for qualified bonds allowed to issuer on advance 
                            basis.''.
    (d) Transitional Coordination With State Law.--Except as otherwise 
provided by a State after the date of the enactment of this Act, the 
interest on any taxable governmental bond (as defined in section 54AA 
of the Internal Revenue Code of 1986, as added by this section) and the 
amount of any credit determined under such section with respect to such 
bond shall be treated for purposes of the income tax laws of such State 
as being exempt from Federal income tax.
    (e) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

                      PART 4--RECOVERY ZONE BONDS

SEC. 1531. RECOVERY ZONE BONDS.

    (a) In General.--Subchapter Y of chapter 1 is amended by adding at 
the end the following new part:

                    ``PART III--RECOVERY ZONE BONDS

``Sec. 1400U-1. Allocation of recovery zone bonds.
``Sec. 1400U-2. Recovery zone economic development bonds.
``Sec. 1400U-3. Recovery zone facility bonds.

``SEC. 1400U-1. ALLOCATION OF RECOVERY ZONE BONDS.

    ``(a) Allocations.--
            ``(1) In general.--The Secretary shall allocate the 
        national recovery zone economic development bond limitation and 
        the national recovery zone facility bond limitation among the 
        States in the proportion that each such State's 2008 State 
        employment decline bears to the aggregate of the 2008 State 
        employment declines for all of the States.
            ``(2) 2008 state employment decline.--For purposes of this 
        subsection, the term `2008 State employment decline' means, 
        with respect to any State, the excess (if any) of--
                    ``(A) the number of individuals employed in such 
                State determined for December 2007, over
                    ``(B) the number of individuals employed in such 
                State determined for December 2008.
            ``(3) Allocations by states.--
                    ``(A) In general.--Each State with respect to which 
                an allocation is made under paragraph (1) shall 
                reallocate such allocation among the counties and large 
                municipalities in such State in the proportion the each 
                such county's or municipality's 2008 employment decline 
                bears to the aggregate of the 2008 employment declines 
                for all the counties and municipalities in such State.
                    ``(B) Large municipalities.--For purposes of 
                subparagraph (A), the term `large municipality' means a 
                municipality with a population of more than 100,000.
                    ``(C) Determination of local employment declines.--
                For purposes of this paragraph, the employment decline 
                of any municipality or county shall be determined in 
                the same manner as determining the State employment 
                decline under paragraph (2), except that in the case of 
                a municipality any portion of which is in a county, 
                such portion shall be treated as part of such 
                municipality and not part of such county.
            ``(4) National limitations.--
                    ``(A) Recovery zone economic development bonds.--
                There is a national recovery zone economic development 
                bond limitation of $10,000,000,000.
                    ``(B) Recovery zone facility bonds.--There is a 
                national recovery zone facility bond limitation of 
                $15,000,000,000.
    ``(b) Recovery Zone.--For purposes of this part, the term `recovery 
zone' means--
            ``(1) any area designated by the issuer as having 
        significant poverty, unemployment, home foreclosures, or 
        general distress, and
            ``(2) any area for which a designation as an empowerment 
        zone or renewal community is in effect.

``SEC. 1400U-2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS.

    ``(a) In General.--In the case of a recovery zone economic 
development bond--
            ``(1) such bond shall be treated as a qualified bond for 
        purposes of section 6432, and
            ``(2) subsection (b) of such section shall be applied by 
        substituting `55 percent' for `35 percent'.
    ``(b) Recovery Zone Economic Development Bond.--
            ``(1) In general.--For purposes of this section, the term 
        `recovery zone economic development bond' means any taxable 
        governmental bond (as defined in section 54AA(d)) issued before 
        January 1, 2011, as part of issue if--
                    ``(A) 100 percent of the available project proceeds 
                (as defined in section 54A) of such issue are to be 
                used for one or more qualified economic development 
                purposes, and
                    ``(B) the issuer designates such bond for purposes 
                of this section.
            ``(2) Limitation on amount of bonds designated.--The 
        maximum aggregate face amount of bonds which may be designated 
        by any issuer under paragraph (1) shall not exceed the amount 
        of the recovery zone economic development bond limitation 
        allocated to such issuer under section 1400U-1.
    ``(c) Qualified Economic Development Purpose.--For purposes of this 
section, the term `qualified economic development purpose' means 
expenditures for purposes of promoting development or other economic 
activity in a recovery zone, including--
            ``(1) capital expenditures paid or incurred with respect to 
        property located in such zone,
            ``(2) expenditures for public infrastructure and 
        construction of public facilities, and
            ``(3) expenditures for job training and educational 
        programs.

``SEC. 1400U-3. RECOVERY ZONE FACILITY BONDS.

    ``(a) In General.--For purposes of part IV of subchapter B 
(relating to tax exemption requirements for State and local bonds), the 
term `exempt facility bond' includes any recovery zone facility bond.
    ``(b) Recovery Zone Facility Bond.--
            ``(1) In general.--For purposes of this section, the term 
        `recovery zone facility bond' means any bond issued as part of 
        an issue if--
                    ``(A) 95 percent or more of the net proceeds (as 
                defined in section 150(a)(3)) of such issue are to be 
                used for recovery zone property,
                    ``(B) such bond is issued before January 1, 2011, 
                and
                    ``(C) the issuer designates such bond for purposes 
                of this section.
            ``(2) Limitation on amount of bonds designated.--The 
        maximum aggregate face amount of bonds which may be designated 
        by any issuer under paragraph (1) shall not exceed the amount 
        of recovery zone facility bond limitation allocated to such 
        issuer under section 1400U-1.
    ``(c) Recovery Zone Property.--For purposes of this section--
            ``(1) In general.--The term `recovery zone property' means 
        any property to which section 168 applies (or would apply but 
        for section 179) if--
                    ``(A) such property was acquired by the taxpayer by 
                purchase (as defined in section 179(d)(2)) after the 
                date on which the designation of the recovery zone took 
                effect,
                    ``(B) the original use of which in the recovery 
                zone commences with the taxpayer, and
                    ``(C) substantially all of the use of which is in 
                the recovery zone and is in the active conduct of a 
                qualified business by the taxpayer in such zone.
            ``(2) Qualified business.--The term `qualified business' 
        means any trade or business except that--
                    ``(A) the rental to others of real property located 
                in a recovery zone shall be treated as a qualified 
                business only if the property is not residential rental 
                property (as defined in section 168(e)(2)), and
                    ``(B) such term shall not include any trade or 
                business consisting of the operation of any facility 
                described in section 144(c)(6)(B).
            ``(3) Special rules for substantial renovations and sale-
        leaseback.--Rules similar to the rules of subsections (a)(2) 
        and (b) of section 1397D shall apply for purposes of this 
        subsection.
    ``(d) Nonapplication of Certain Rules.--Sections 146 (relating to 
volume cap) and 147(d) (relating to acquisition of existing property 
not permitted) shall not apply to any recovery zone facility bond.''.
    (b) Clerical Amendment.--The table of parts for subchapter Y of 
chapter 1 of such Code is amended by adding at the end the following 
new item:

                  ``Part III. Recovery Zone Bonds.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 1532. TRIBAL ECONOMIC DEVELOPMENT BONDS.

    (a) In General.--Section 7871 is amended by adding at the end the 
following new subsection:
    ``(f) Tribal Economic Development Bonds.--
            ``(1) Allocation of limitation.--
                    ``(A) In general.--The Secretary shall allocate the 
                national tribal economic development bond limitation 
                among the Indian tribal governments in such manner as 
                the Secretary, in consultation with the Secretary of 
                the Interior, determines appropriate.
                    ``(B) National limitation.--There is a national 
                tribal economic development bond limitation of 
                $2,000,000,000.
            ``(2) Bonds treated as exempt from tax.--In the case of a 
        tribal economic development bond--
                    ``(A) notwithstanding subsection (c), such bond 
                shall be treated for purposes of this title in the same 
                manner as if such bond were issued by a State, and
                    ``(B) section 146 shall not apply.
            ``(3) Tribal economic development bond.--
                    ``(A) In general.--For purposes of this section, 
                the term `tribal economic development bond' means any 
                bond issued by an Indian tribal government--
                            ``(i) the interest on which is not exempt 
                        from tax under section 103 by reason of 
                        subsection (c) (determined without regard to 
                        this subsection) but would be so exempt if 
                        issued by a State or local government, and
                            ``(ii) which is designated by the Indian 
                        tribal government as a tribal economic 
                        development bond for purposes of this 
                        subsection.
                    ``(B) Exceptions.--The term tribal economic 
                development bond shall not include any bond issued as 
                part of an issue if any portion of the proceeds of such 
                issue are used to finance--
                            ``(i) any portion of a building in which 
                        class II or class III gaming (as defined in 
                        section 4 of the Indian Gaming Regulatory Act) 
                        is conducted or housed or any other property 
                        actually used in the conduct of such gaming, or
                            ``(ii) any facility located outside the 
                        Indian reservation (as defined in section 
                        168(j)(6)).
                    ``(C) Limitation on amount of bonds designated.--
                The maximum aggregate face amount of bonds which may be 
                designated by any Indian tribal government under 
                subparagraph (A) shall not exceed the amount of 
                national tribal economic development bond limitation 
                allocated to such government under paragraph (1).''.
    (b) Study.--The Secretary of the Treasury, or the Secretary's 
delegate, shall conduct a study of the effects of the amendment made by 
subsection (a). Not later than 1 year after the date of the enactment 
of this Act, the Secretary of the Treasury, or the Secretary's 
delegate, shall report to Congress on the results of the studies 
conducted under this paragraph, including the Secretary's 
recommendations regarding such amendment.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to obligations issued after the date of the enactment of this 
Act.

      PART 5--REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS

SEC. 1541. REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.

    Section 3402 is amended by striking subsection (t).

                     Subtitle G--Energy Incentives

                  PART 1--RENEWABLE ENERGY INCENTIVES

SEC. 1601. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN 
              RENEWABLE RESOURCES.

    (a) In General.--Subsection (d) of section 45 is amended--
            (1) by striking ``2010'' in paragraph (1) and inserting 
        ``2013'',
            (2) by striking ``2011'' each place it appears in 
        paragraphs (2), (3), (4), (6), (7) and (9) and inserting 
        ``2014'', and
            (3) by striking ``2012'' in paragraph (11)(B) and inserting 
        ``2014''.
    (b) Technical Amendment.--Paragraph (5) of section 45(d) is amended 
by striking ``and before'' and all that follows and inserting `` and 
before October 3, 2008.''.
    (c) Effective Date.--
            (1) In general.--The amendments made by subsection (a) 
        shall apply to property placed in service after the date of the 
        enactment of this Act.
            (2) Technical amendment.--The amendment made by subsection 
        (b) shall take effect as if included in section 102 of the 
        Energy Improvement and Extension Act of 2008.

SEC. 1602. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT.

    (a) In General.--Subsection (a) of section 48 is amended by adding 
at the end the following new paragraph:
            ``(5) Election to treat qualified facilities as energy 
        property.--
                    ``(A) In general.--In the case of any qualified 
                investment credit facility placed in service in 2009 or 
                2010--
                            ``(i) such facility shall be treated as 
                        energy property for purposes of this section, 
                        and
                            ``(ii) the energy percentage with respect 
                        to such property shall be 30 percent.
                    ``(B) Denial of production credit.--No credit shall 
                be allowed under section 45 for any taxable year with 
                respect to any qualified investment credit facility.
                    ``(C) Qualified investment credit facility.--For 
                purposes of this paragraph, the term `qualified 
                investment credit facility' means any facility 
                described in paragraph (1), (2), (3), (4), (6), (7), 
                (9), or (11) of section 45(d) if no credit has been 
                allowed under section 45 with respect to such facility 
                and the taxpayer makes an irrevocable election to have 
                this paragraph apply to such facility.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to facilities placed in service after December 31, 2008.

SEC. 1603. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY 
              PROPERTY.

    (a) Repeal of Limitation on Credit for Qualified Small Wind Energy 
Property.--Paragraph (4) of section 48(c) is amended by striking 
subparagraph (B) and by redesignating subparagraphs (C) and (D) as 
subparagraphs (B) and (C).
    (b) Repeal of Limitation on Property Financed by Subsidized Energy 
Financing.--
            (1) In general.--Subsection (a) of section 48 is amended by 
        striking paragraph (4).
            (2) Conforming amendments.--
                    (A) Section 25C(e)(1) is amended by striking ``(8), 
                and (9)'' and inserting ``and (8)''.
                    (B) Section 25D(e) is amended by striking paragraph 
                (9).
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2),the 
        amendment made by this section shall apply to periods after 
        December 31, 2008, under rules similar to the rules of section 
        48(m) of the Internal Revenue Code of 1986 (as in effect on the 
        day before the date of the enactment of the Revenue 
        Reconciliation Act of 1990).
            (2) Conforming amendments.--The amendments made by 
        subsection (b)(2) shall apply to taxable years beginning after 
        December 31, 2008.

SEC. 1604. COORDINATION WITH RENEWABLE ENERGY GRANTS.

    Section 48 is amended by adding at the end the following new 
subsection:
    ``(d) Coordination With Department of Energy Grants.--In the case 
of any property with respect to which the Secretary of Energy makes a 
grant under section 1721 of the American Recovery and Reinvestment Tax 
Act of 2009--
            ``(1) Denial of production and investment credits.--No 
        credit shall be determined under this section or section 45 
        with respect to such property for the taxable year in which 
        such grant is made or any subsequent taxable year.
            ``(2) Recapture of credits for progress expenditures made 
        before grant.--If a credit was determined under this section 
        with respect to such property for any taxable year ending 
        before such grant is made--
                    ``(A) the tax imposed under subtitle A on the 
                taxpayer for the taxable year in which such grant is 
                made shall be increased by so much of such credit as 
                was allowed under section 38,
                    ``(B) the general business carryforwards under 
                section 39 shall be adjusted so as to recapture the 
                portion of such credit which was not so allowed, and
                    ``(C) the amount of such grant shall be determined 
                without regard to any reduction in the basis of such 
                property by reason of such credit.
            ``(3) Treatment of grants.--Any such grant shall--
                    ``(A) not be includible in the gross income of the 
                taxpayer, but
                    ``(B) shall be taken into account in determining 
                the basis of the property to which such grant relates, 
                except that the basis of such property shall be reduced 
                under section 50(c) in the same manner as a credit 
                allowed under subsection (a).''.

 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.

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

SEC. 1612. INCREASED LIMITATION AND EXPANSION OF QUALIFIED ENERGY 
              CONSERVATION BONDS.

    (a) Increased Limitation.--Subsection (e) of section 54D is amended 
by adding at the end the following new paragraph:
            ``(4) Additional limitation.--The national qualified energy 
        conservation bond limitation shall be increased by 
        $2,400,000,000. Such increase shall be allocated by the 
        Secretary consistent with the rules of paragraphs (1), (2), and 
        (3).''.
    (b) Loans and Grants to Implement Green Community Programs.--
            (1) In general.--Subparagraph (A) of section 54D(f)(1) is 
        amended by inserting ``(or loans or grants for capital 
        expenditures to implement any green community program)'' after 
        ``Capital expenditures''.
            (2) Bonds to implement green community programs not treated 
        as private activity bonds for purposes of limitations on 
        qualified energy conservation bonds .--Subsection (e) of 
        section 54D is amended by adding at the end the following new 
        paragraph:
            ``(4) Bonds to implement green community programs not 
        treated as private activity bonds.--For purposes of paragraph 
        (3) and subsection (f)(2), a bond shall not be treated as a 
        private activity bond solely because proceeds of the issue of 
        which such bond is a part are to be used for loans or grants 
        for capital expenditures to implement any green community 
        program.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

                 PART 3--ENERGY CONSERVATION INCENTIVES

SEC. 1621. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY.

    (a) In General.--Section 25C is amended by striking subsections (a) 
and (b) and inserting the following new subsections:
    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 30 percent of the sum of--
            ``(1) the amount paid or incurred by the taxpayer during 
        such taxable year for qualified energy efficiency improvements, 
        and
            ``(2) the amount of the residential energy property 
        expenditures paid or incurred by the taxpayer during such 
        taxable year.
    ``(b) Limitation.--The aggregate amount of the credits allowed 
under this section for taxable years beginning in 2009 and 2010 with 
respect to any taxpayer shall not exceed $1,500.''.
    (b) Extension.--Section 25C(g)(2) is amended by striking ``December 
31, 2009'' and inserting ``December 31, 2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 1622. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
              PROPERTY.

    (a) Removal of Credit Limitation for Property Placed in Service.--
            (1) In general.--Paragraph (1) of section 25D(b) is amended 
        to read as follows:
            ``(1) Maximum credit for fuel cells.--In the case of any 
        qualified fuel cell property expenditure, the credit allowed 
        under subsection (a) (determined without regard to subsection 
        (c)) for any taxable year shall not exceed $500 with respect to 
        each half kilowatt of capacity of the qualified fuel cell 
        property (as defined in section 48(c)(1)) to which such 
        expenditure relates.''.
            (2) Conforming amendment.--Paragraph (4) of section 25D(e) 
        is amended--
                    (A) by striking all that precedes subparagraph (B) 
                and inserting the following:
            ``(4) Fuel cell expenditure limitations in case of joint 
        occupancy.--In the case of any dwelling unit with respect to 
        which qualified fuel cell property expenditures are made and 
        which is jointly occupied and used during any calendar year as 
        a residence by two or more individuals the following rules 
        shall apply:
                    ``(A) Maximum expenditures for fuel cells.--The 
                maximum amount of such expenditures which may be taken 
                into account under subsection (a) by all such 
                individuals with respect to such dwelling unit during 
                such calendar year shall be $1,667 in the case of each 
                half kilowatt of capacity of qualified fuel cell 
                property (as defined in section 48(c)(1)) with respect 
                to which such expenditures relate.'', and
                    (B) by striking subparagraph (C).
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 1623. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE 
              REFUELING PROPERTY.

    (a) In General.--Section 30C(e) is amended by adding at the end the 
following new paragraph:
            ``(6) Special rule for property placed in service during 
        2009 and 2010.--In the case of property placed in service in 
        taxable years beginning after December 31, 2008, and before 
        January 1, 2011--
                    ``(A) in the case of any such property which does 
                not relate to hydrogen--
                            ``(i) subsection (a) shall be applied by 
                        substituting `50 percent' for `30 percent',
                            ``(ii) subsection (b)(1) shall be applied 
                        by substituting `$50,000' for `$30,000', and
                            ``(iii) subsection (b)(2) shall be applied 
                        by substituting `$2,000' for `$1,000', and
                    ``(B) in the case of any such property which 
                relates to hydrogen, subsection (b) shall be applied by 
                substituting `$200,000' for `$30,000'.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2008.

                   PART 4--ENERGY RESEARCH INCENTIVES

SEC. 1631. INCREASED RESEARCH CREDIT FOR ENERGY RESEARCH.

    (a) In General.--Section 41 is amended by redesignating subsection 
(h) as subsection (i) and by inserting after subsection (g) the 
following new subsection:
    ``(h) Energy Research Credit.--In the case of any taxable year 
beginning in 2009 or 2010--
            ``(1) In general.--The credit determined under subsection 
        (a)(1) shall be increased by 20 percent of the qualified energy 
        research expenses for the taxable year.
            ``(2) Qualified energy research expenses.--For purposes of 
        this subsection, the term `qualified energy research expenses' 
        means so much of the taxpayer's qualified research expenses as 
        are related to the fields of fuel cells and battery technology, 
        renewable energy, energy conservation technology, efficient 
        transmission and distribution of electricity, and carbon 
        capture and sequestration.
            ``(3) Coordination with other research credits.--
                    ``(A) Incremental credit.--The amount of qualified 
                energy research expenses taken into account under 
                subsection (a)(1)(A) shall not exceed the base amount.
                    ``(B) Alternative simplified credit.--For purposes 
                of subsection (c)(5), the amount of qualified energy 
                research expenses taken into account for the taxable 
                year for which the credit is being determined shall not 
                exceed--
                            ``(i) in the case of subsection (c)(5)(A), 
                        50 percent of the average qualified research 
                        expenses for the 3 taxable years preceding the 
                        taxable year for which the credit is being 
                        determined, and
                            ``(ii) in the case of subsection 
                        (c)(5)(B)(ii), zero.
                    ``(C) Basic research and energy research consortium 
                payments.--Any amount taken into account under 
                paragraph (1) shall not be taken into account under 
                paragraph (2) or (3) of subsection (a).''.
    (b) Conforming Amendment.--Subparagraph (B) of section 41(i)(1)(B), 
as redesignated by subsection (a), is amended by inserting ``(in the 
case of the increase in the credit determined under subsection (h), 
December 31, 2010)'' after ``December 31, 2009''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

                      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.

    Subchapter IV of chapter 31 of the title 40, United States Code, 
shall apply to projects financed with the proceeds of--
            (1) any qualified clean renewable energy bond (as defined 
        in section 54C of the Internal Revenue Code of 1986) issued 
        after the date of the enactment of this Act,
            (2) any qualified energy conservation bond (as defined in 
        section 54D of the Internal Revenue Code of 1986) issued after 
        the date of the enactment of this Act,
            (3) any qualified zone academy bond (as defined in section 
        54E of the Internal Revenue Code of 1986) issued after the date 
        of the enactment of this Act,
            (4) any qualified school construction bond (as defined in 
        section 54F of the Internal Revenue Code of 1986), and
            (5) any recovery zone economic development bond (as defined 
        in section 1400U-2 of the Internal Revenue Code of 1986).

       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.

    (a) In General.--The Secretary of the Treasury shall make a grant 
to the housing credit agency of each State in an amount equal to such 
State's low-income housing grant election amount.
    (b) Low-Income Housing Grant Election Amount.--For purposes of this 
section, the term ``low-income housing grant election amount'' means, 
with respect to any State, such amount as the State may elect which 
does not exceed 85 percent of the product of--
            (1) the sum of--
                    (A) 100 percent of the State housing credit ceiling 
                for 2009 which is attributable to amounts described in 
                clauses (i) and (iii) of section 42(h)(3)(C) of the 
                Internal Revenue Code of 1986, and
                    (B) 40 percent of the State housing credit ceiling 
                for 2009 which is attributable to amounts described in 
                clauses (ii) and (iv) of such section, multiplied by
            (2) 10.
    (c) Subawards for Low-Income Buildings.--
            (1) In general.--A State housing credit agency receiving a 
        grant under this section shall use such grant to make subawards 
        to finance the construction or acquisition and rehabilitation 
        of qualified low-income buildings. A subaward under this 
        section may be made to finance a qualified low-income building 
        with or without an allocation under section 42 of the Internal 
        Revenue Code of 1986, except that a State housing credit agency 
        may make subawards to finance qualified low-income buildings 
        without an allocation only if it makes a determination that 
        such use will increase the total funds available to the State 
        to build and rehabilitate affordable housing. In complying with 
        such determination requirement, a State housing credit agency 
        shall establish a process in which applicants that are 
        allocated credits are required to demonstrate good faith 
        efforts to obtain investment commitments for such credits 
        before the agency makes such subawards.
            (2) Subawards subject to same requirements as low-income 
        housing credit allocations.--Any such subaward with respect to 
        any qualified low-income building shall be made in the same 
        manner and shall be subject to the same limitations (including 
        rent, income, and use restrictions on such building) as an 
        allocation of housing credit dollar amount allocated by such 
        State housing credit agency under section 42 of the Internal 
        Revenue Code of 1986, except that such subawards shall not be 
        limited by, or otherwise affect (except as provided in 
        subsection (h)(3)(J) of such section), the State housing credit 
        ceiling applicable to such agency.
            (3) Compliance and asset management.--The State housing 
        credit agency shall perform asset management functions to 
        ensure compliance with section 42 of the Internal Revenue Code 
        of 1986 and the long-term viability of buildings funded by any 
        subaward under this section. The State housing credit agency 
        may collect reasonable fees from a subaward recipient to cover 
        expenses associated with the performance of its duties under 
        this paragraph. The State housing credit agency may retain an 
        agent or other private contractor to satisfy the requirements 
        of this paragraph.
            (4) Recapture.--The State housing credit agency shall 
        impose conditions or restrictions, including a requirement 
        providing for recapture, on any subaward under this section so 
        as to assure that the building with respect to which such 
        subaward is made remains a qualified low-income building during 
        the compliance period. Any such recapture shall be payable to 
        the Secretary of the Treasury for deposit in the general fund 
        of the Treasury and may be enforced by means of liens or such 
        other methods as the Secretary of the Treasury determines 
        appropriate.
    (d) Return of Unused Grant Funds.--Any grant funds not used to make 
subawards under this section before January 1, 2011, shall be returned 
to the Secretary of the Treasury on such date. Any subawards returned 
to the State housing credit agency on or after such date shall be 
promptly returned to the Secretary of the Treasury. Any amounts 
returned to the Secretary of the Treasury under this subsection shall 
be deposited in the general fund of the Treasury.
    (e) Definitions.--Any term used in this section which is also used 
in section 42 of the Internal Revenue Code of 1986 shall have the same 
meaning for purposes of this section as when used in such section 42. 
Any reference in this section to the Secretary of the Treasury shall be 
treated as including the Secretary's delegate.
    (f) Appropriations.--There is hereby appropriated to the Secretary 
of the Treasury such sums as may be necessary to carry out this 
section.

  PART 3--GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS

SEC. 1721. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS.

    (a) In General.--Upon application, the Secretary of Energy shall, 
within 60 days of the application and subject to the requirements of 
this section, provide a grant to each person who places in service 
specified energy property during 2009 or 2010 to reimburse such person 
for a portion of the expense of such facility as provided in subsection 
(b).
    (b) Grant Amount.--
            (1) In general.--The amount of the grant under subsection 
        (a) with respect to any specified energy property shall be the 
        applicable percentage of the basis of such facility.
            (2) Applicable percentage.--For purposes of paragraph (1), 
        the term ``applicable percentage'' means--
                    (A) 30 percent in the case of any property 
                described in paragraphs (1) through (4) of subsection 
                (c), and
                    (B) 10 percent in the case of any other property.
            (3) Dollar limitations.--In the case of property described 
        in paragraph (2), (6), or (7) of subsection (c), the amount of 
        any grant under this section with respect to such property 
        shall not exceed the limitation described in section 
        48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal 
        Revenue Code of 1986, respectively, with respect to such 
        property.
    (c) Specified Energy Property.--For purposes of this section, the 
term ``specified energy property'' means any of the following:
            (1) Qualified facilities.--Any facility described in 
        paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of section 
        45(d) of the Internal Revenue Code of 1986.
            (2) Qualified fuel cell property.--Any qualified fuel cell 
        property (as defined in section 48(c)(1) of such Code).
            (3) Solar property.--Any property described in clause (i) 
        or (ii) of section 48(a)(3)(A) of such Code.
            (4) Qualified small wind energy property.--Any qualified 
        small wind energy property (as defined in section 48(c)(4) of 
        such Code).
            (5) Geothermal property.--Any property described in clause 
        (iii) of section 48(a)(3)(A) of such Code.
            (6) Qualified microturbine property.--Any qualified 
        microturbine property (as defined in section 48(c)(2) of such 
        Code).
            (7) Combined heat and power system property.--Any combined 
        heat and power system property (as defined in section 48(c)(3) 
        of such Code).
            (8) Geothermal heatpump property.--Any property described 
        in clause (vii) of section 48(a)(3)(A) of such Code.
    (d) Application of Certain Rules.--In making grants under this 
section, the Secretary of Energy shall apply rules similar to the rules 
of section 50 of the Internal Revenue Code of 1986. In applying such 
rules, if the facility is disposed of, or otherwise ceases to be a 
qualified renewable energy facility, the Secretary of Energy shall 
provide for the recapture of the appropriate percentage of the grant 
amount in such manner as the Secretary of Energy determines 
appropriate.
    (e) Exception for Certain Non-Taxpayers.--The Secretary of Energy 
shall not make any grant under this section to any Federal, State, or 
local government (or any political subdivision, agency, or 
instrumentality thereof) or any organization described in section 
501(c) of the Internal Revenue Code of 1986 and exempt from tax under 
section 501(a) of such Code.
    (f) Definitions.--Terms used in this section which are also used in 
section 45 or 48 of the Internal Revenue Code of 1986 shall have the 
same meaning for purposes of this section as when used in such section 
45 or 48. Any reference in this section to the Secretary of the 
Treasury shall be treated as including the Secretary's delegate.
    (g) Coordination Between Departments of Treasury and Energy.--The 
Secretary of the Treasury shall provide the Secretary of Energy with 
such technical assistance as the Secretary of Energy may require in 
carrying out this section. The Secretary of Energy shall provide the 
Secretary of the Treasury with such information as the Secretary of the 
Treasury may require in carrying out the amendment made by section 
1604.
    (h) Appropriations.--There is hereby appropriated to the Secretary 
of Energy such sums as may be necessary to carry out this section.
    (i) Termination.--The Secretary of Energy shall not make any grant 
to any person under this section unless the application of such person 
for such grant is received before October 1, 2011.

 PART 4--STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF THIS ACT

SEC. 1731. STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF THIS 
              ACT.

    On February 1, 2010, and every 3 months thereafter in calendar year 
2010, the Comptroller General of the United States shall submit to the 
Committee on Ways and Means a written report on the most recent 
national (and, where available, State-by-State) information on--
            (1) the economic effects of this Act;
            (2) the employment effects of this Act, including--
                    (A) a comparison of the number of jobs preserved 
                and the number of jobs created as a result of this Act; 
                and
                    (B) a comparison of the numbers of jobs preserved 
                and the number of jobs created in each of the public 
                and private sectors;
            (3) the share of tax and non-tax expenditures provided 
        under this Act that were spent or saved, by group and income 
        class;
            (4) how the funds provided to States under this Act have 
        been spent, including a breakdown of--
                    (A) funds used for services provided to citizens; 
                and
                    (B) wages and other compensation for public 
                employees; and
            (5) a description of any funds made available under this 
        Act that remain unspent, and the reasons why.

  TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

SEC. 2000. SHORT TITLE.

    This title may be cited as the ``Assistance for Unemployed Workers 
and Struggling Families Act''.

                   Subtitle A--Unemployment Insurance

SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

    (a) In General.--Section 4007 of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by 
section 4 of the Unemployment Compensation Extension Act of 2008 
(Public Law 110-449; 122 Stat. 5015), is amended--
            (1) by striking ``March 31, 2009'' each place it appears 
        and inserting ``December 31, 2009'';
            (2) in the heading for subsection (b)(2), by striking 
        ``march 31, 2009'' and inserting ``december 31, 2009''; and
            (3) in subsection (b)(3), by striking ``August 27, 2009'' 
        and inserting ``May 31, 2010''.
    (b) Financing Provisions.--Section 4004 of such Act is amended by 
adding at the end the following:
    ``(e) Transfer of Funds.--Notwithstanding any other provision of 
law, the Secretary of the Treasury shall transfer from the general fund 
of the Treasury (from funds not otherwise appropriated)--
            ``(1) to the extended unemployment compensation account (as 
        established by section 905 of the Social Security Act) such 
        sums as the Secretary of Labor estimates to be necessary to 
        make payments to States under this title by reason of the 
        amendments made by section 2001(a) of the Assistance for 
        Unemployed Workers and Struggling Families Act; and
            ``(2) to the employment security administration account (as 
        established by section 901 of the Social Security Act) such 
        sums as the Secretary of Labor estimates to be necessary for 
        purposes of assisting States in meeting administrative costs by 
        reason of the amendments referred to in paragraph (1).
There are appropriated from the general fund of the Treasury, without 
fiscal year limitation, the sums referred to in the preceding sentence 
and such sums shall not be required to be repaid.''.

SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS.

    (a) Federal-State Agreements.--Any State which desires to do so may 
enter into and participate in an agreement under this section with the 
Secretary of Labor (hereinafter in this section referred to as the 
``Secretary''). Any State which is a party to an agreement under this 
section may, upon providing 30 days' written notice to the Secretary, 
terminate such agreement.
    (b) Provisions of Agreement.--
            (1) Additional compensation.--Any agreement under this 
        section shall provide that the State agency of the State will 
        make payments of regular compensation to individuals in amounts 
        and to the extent that they would be determined if the State 
        law of the State were applied, with respect to any week for 
        which the individual is (disregarding this section) otherwise 
        entitled under the State law to receive regular compensation, 
        as if such State law had been modified in a manner such that 
        the amount of regular compensation (including dependents' 
        allowances) payable for any week shall be equal to the amount 
        determined under the State law (before the application of this 
        paragraph) plus an additional $25.
            (2) Allowable methods of payment.--Any additional 
        compensation provided for in accordance with paragraph (1) 
        shall be payable either--
                    (A) as an amount which is paid at the same time and 
                in the same manner as any regular compensation 
                otherwise payable for the week involved; or
                    (B) at the option of the State, by payments which 
                are made separately from, but on the same weekly basis 
                as, any regular compensation otherwise payable.
    (c) Nonreduction Rule.--An agreement under this section shall not 
apply (or shall cease to apply) with respect to a State upon a 
determination by the Secretary that the method governing the 
computation of regular compensation under the State law of that State 
has been modified in a manner such that--
            (1) the average weekly benefit amount of regular 
        compensation which will be payable during the period of the 
        agreement (determined disregarding any additional amounts 
        attributable to the modification described in subsection 
        (b)(1)) will be less than
            (2) the average weekly benefit amount of regular 
        compensation which would otherwise have been payable during 
        such period under the State law, as in effect on December 31, 
        2008.
    (d) Payments to States.--
            (1) In general.--
                    (A) Full reimbursement.--There shall be paid to 
                each State which has entered into an agreement under 
                this section an amount equal to 100 percent of--
                            (i) the total amount of additional 
                        compensation (as described in subsection 
                        (b)(1)) paid to individuals by the State 
                        pursuant to such agreement; and
                            (ii) any additional administrative expenses 
                        incurred by the State by reason of such 
                        agreement (as determined by the Secretary).
                    (B) Terms of payments.--Sums payable to any State 
                by reason of such State's having an agreement under 
                this section shall be payable, either in advance or by 
                way of reimbursement (as determined by the Secretary), 
                in such amounts as the Secretary estimates the State 
                will be entitled to receive under this section for each 
                calendar month, reduced or increased, as the case may 
                be, by any amount by which the Secretary finds that his 
                estimates for any prior calendar month were greater or 
                less than the amounts which should have been paid to 
                the State. Such estimates may be made on the basis of 
                such statistical, sampling, or other method as may be 
                agreed upon by the Secretary and the State agency of 
                the State involved.
            (2) Certifications.--The Secretary shall from time to time 
        certify to the Secretary of the Treasury for payment to each 
        State the sums payable to such State under this section.
            (3) Appropriation.--There are appropriated from the general 
        fund of the Treasury, without fiscal year limitation, such sums 
        as may be necessary for purposes of this subsection.
    (e) Applicability.--
            (1) In general.--An agreement entered into under this 
        section shall apply to weeks of unemployment--
                    (A) beginning after the date on which such 
                agreement is entered into; and
                    (B) ending before January 1, 2010.
            (2) Transition rule for individuals remaining entitled to 
        regular compensation as of january 1, 2010.--In the case of any 
        individual who, as of the date specified in paragraph (1)(B), 
        has not yet exhausted all rights to regular compensation under 
        the State law of a State with respect to a benefit year that 
        began before such date, additional compensation (as described 
        in subsection (b)(1)) shall continue to be payable to such 
        individual for any week beginning on or after such date for 
        which the individual is otherwise eligible for regular 
        compensation with respect to such benefit year.
            (3) Termination.--Notwithstanding any other provision of 
        this subsection, no additional compensation (as described in 
        subsection (b)(1)) shall be payable for any week beginning 
        after June 30, 2010.
    (f) Fraud and Overpayments.--The provisions of section 4005 of the 
Supplemental Appropriations Act, 2008 (Public Law 110-252; 122 Stat. 
2356) shall apply with respect to additional compensation (as described 
in subsection (b)(1)) to the same extent and in the same manner as in 
the case of emergency unemployment compensation.
    (g) Application to Other Unemployment Benefits.--
            (1) In general.--Each agreement under this section shall 
        include provisions to provide that the purposes of the 
        preceding provisions of this section shall be applied with 
        respect to unemployment benefits described in subsection (h)(3) 
        to the same extent and in the same manner as if those benefits 
        were regular compensation.
            (2) Eligibility and termination rules.-- Additional 
        compensation (as described in subsection (b)(1))--
                    (A) shall not be payable, pursuant to this 
                subsection, with respect to any unemployment benefits 
                described in subsection (h)(3) for any week beginning 
                on or after the date specified in subsection (e)(1)(B), 
                except in the case of an individual who was eligible to 
                receive additional compensation (as so described) in 
                connection with any regular compensation or any 
                unemployment benefits described in subsection (h)(3) 
                for any period of unemployment ending before such date; 
                and
                    (B) shall in no event be payable for any week 
                beginning after the date specified in subsection 
                (e)(3).
    (h)  Disregard of Additional Compensation for Purposes of Medicaid 
and SCHIP.--The monthly equivalent of any additional compensation paid 
under this section shall be disregarded in considering the amount of 
income of an individual for any purposes under title XIX and title XXI 
of the Social Security Act.
    (i) Definitions.--For purposes of this section--
            (1) the terms ``compensation'', ``regular compensation'', 
        ``benefit year'', ``State'', ``State agency'', ``State law'', 
        and ``week'' have the respective meanings given such terms 
        under section 205 of the Federal-State Extended Unemployment 
        Compensation Act of 1970 (26 U.S.C. 3304 note);
            (2) the term ``emergency unemployment compensation'' means 
        emergency unemployment compensation under title IV of the 
        Supplemental Appropriations Act, 2008 (Public Law 110-252; 122 
        Stat. 2353); and
            (3) any reference to unemployment benefits described in 
        this paragraph shall be considered to refer to--
                    (A) extended compensation (as defined by section 
                205 of the Federal-State Extended Unemployment 
                Compensation Act of 1970); and
                    (B) unemployment compensation (as defined by 
                section 85(b) of the Internal Revenue Code of 1986) 
                provided under any program administered by a State 
                under an agreement with the Secretary.

SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT COMPENSATION 
              MODERNIZATION.

    (a) In General.--Section 903 of the Social Security Act (42 U.S.C. 
1103) is amended by adding at the end the following:

     ``Special Transfers in Fiscal Years 2009, 2010, and 2011 for 
                             Modernization

    ``(f)(1)(A) In addition to any other amounts, the Secretary of 
Labor shall provide for the making of unemployment compensation 
modernization incentive payments (hereinafter `incentive payments') to 
the accounts of the States in the Unemployment Trust Fund, by transfer 
from amounts reserved for that purpose in the Federal unemployment 
account, in accordance with succeeding provisions of this subsection.
    ``(B) The maximum incentive payment allowable under this subsection 
with respect to any State shall, as determined by the Secretary of 
Labor, be equal to the amount obtained by multiplying $7,000,000,000 by 
the same ratio as would apply under subsection (a)(2)(B) for purposes 
of determining such State's share of any excess amount (as described in 
subsection (a)(1)) that would have been subject to transfer to State 
accounts, as of October 1, 2008, under the provisions of subsection 
(a).
    ``(C) Of the maximum incentive payment determined under 
subparagraph (B) with respect to a State--
            ``(i) one-third shall be transferred to the account of such 
        State upon a certification under paragraph (4)(B) that the 
        State law of such State meets the requirements of paragraph 
        (2); and
            ``(ii) the remainder shall be transferred to the account of 
        such State upon a certification under paragraph (4)(B) that the 
        State law of such State meets the requirements of paragraph 
        (3).
    ``(2) The State law of a State meets the requirements of this 
paragraph if such State law--
            ``(A) uses a base period that includes the most recently 
        completed calendar quarter before the start of the benefit year 
        for purposes of determining eligibility for unemployment 
        compensation; or
            ``(B) provides that, in the case of an individual who would 
        not otherwise be eligible for unemployment compensation under 
        the State law because of the use of a base period that does not 
        include the most recently completed calendar quarter before the 
        start of the benefit year, eligibility shall be determined 
        using a base period that includes such calendar quarter.
    ``(3) The State law of a State meets the requirements of this 
paragraph if such State law includes provisions to carry out at least 2 
of the following subparagraphs:
            ``(A) An individual shall not be denied regular 
        unemployment compensation under any State law provisions 
        relating to availability for work, active search for work, or 
        refusal to accept work, solely because such individual is 
        seeking only part-time work (as defined by the Secretary of 
        Labor), except that the State law provisions carrying out this 
        subparagraph may exclude an individual if a majority of the 
        weeks of work in such individual's base period do not include 
        part-time work (as so defined).
            ``(B) An individual shall not be disqualified from regular 
        unemployment compensation for separating from employment if 
        that separation is for any compelling family reason. For 
        purposes of this subparagraph, the term `compelling family 
        reason' means the following:
                    ``(i) Domestic violence, verified by such 
                reasonable and confidential documentation as the State 
                law may require, which causes the individual reasonably 
                to believe that such individual's continued employment 
                would jeopardize the safety of the individual or of any 
                member of the individual's immediate family (as defined 
                by the Secretary of Labor).
                    ``(ii) The illness or disability of a member of the 
                individual's immediate family (as those terms are 
                defined by the Secretary of Labor).
                    ``(iii) The need for the individual to accompany 
                such individual's spouse--
                            ``(I) to a place from which it is 
                        impractical for such individual to commute; and
                            ``(II) due to a change in location of the 
                        spouse's employment.
            ``(C) Weekly unemployment compensation is payable under 
        this subparagraph to any individual who is unemployed (as 
        determined under the State unemployment compensation law), has 
        exhausted all rights to regular unemployment compensation under 
        the State law, and is enrolled and making satisfactory progress 
        in a State-approved training program or in a job training 
        program authorized under the Workforce Investment Act of 1998. 
        Such programs shall prepare individuals who have been separated 
        from a declining occupation, or who have been involuntarily and 
        indefinitely separated from employment as a result of a 
        permanent reduction of operations at the individual's place of 
        employment, for entry into a high-demand occupation. The amount 
        of unemployment compensation payable under this subparagraph to 
        an individual for a week of unemployment shall be equal to the 
        individual's average weekly benefit amount (including 
        dependents' allowances) for the most recent benefit year, and 
        the total amount of unemployment compensation payable under 
        this subparagraph to any individual shall be equal to at least 
        26 times the individual's average weekly benefit amount 
        (including dependents' allowances) for the most recent benefit 
        year.
            ``(D) Dependents' allowances are provided, in the case of 
        any individual who is entitled to receive regular unemployment 
        compensation and who has any dependents (as defined by State 
        law), in an amount equal to at least $15 per dependent per 
        week, subject to any aggregate limitation on such allowances 
        which the State law may establish (but which aggregate 
        limitation on the total allowance for dependents paid to an 
        individual may not be less than $50 for each week of 
        unemployment or 50 percent of the individual's weekly benefit 
        amount for the benefit year, whichever is less).
    ``(4)(A) Any State seeking an incentive payment under this 
subsection shall submit an application therefor at such time, in such 
manner, and complete with such information as the Secretary of Labor 
may within 60 days after the date of the enactment of this subsection 
prescribe (whether by regulation or otherwise), including information 
relating to compliance with the requirements of paragraph (2) or (3), 
as well as how the State intends to use the incentive payment to 
improve or strengthen the State's unemployment compensation program. 
The Secretary of Labor shall, within 30 days after receiving a complete 
application, notify the State agency of the State of the Secretary's 
findings with respect to the requirements of paragraph (2) or (3) (or 
both).
    ``(B)(i) If the Secretary of Labor finds that the State law 
provisions (disregarding any State law provisions which are not then 
currently in effect as permanent law or which are subject to 
discontinuation) meet the requirements of paragraph (2) or (3), as the 
case may be, the Secretary of Labor shall thereupon make a 
certification to that effect to the Secretary of the Treasury, together 
with a certification as to the amount of the incentive payment to be 
transferred to the State account pursuant to that finding. The 
Secretary of the Treasury shall make the appropriate transfer within 7 
days after receiving such certification.
    ``(ii) For purposes of clause (i), State law provisions which are 
to take effect within 12 months after the date of their certification 
under this subparagraph shall be considered to be in effect as of the 
date of such certification.
    ``(C)(i) No certification of compliance with the requirements of 
paragraph (2) or (3) may be made with respect to any State whose State 
law is not otherwise eligible for certification under section 303 or 
approvable under section 3304 of the Federal Unemployment Tax Act.
    ``(ii) No certification of compliance with the requirements of 
paragraph (3) may be made with respect to any State whose State law is 
not in compliance with the requirements of paragraph (2).
    ``(iii) No application under subparagraph (A) may be considered if 
submitted before the date of the enactment of this subsection or after 
the latest date necessary (as specified by the Secretary of Labor) to 
ensure that all incentive payments under this subsection are made 
before October 1, 2011.
    ``(5)(A) Except as provided in subparagraph (B), any amount 
transferred to the account of a State under this subsection may be used 
by such State only in the payment of cash benefits to individuals with 
respect to their unemployment (including for dependents' allowances and 
for unemployment compensation under paragraph (3)(C)), exclusive of 
expenses of administration.
    ``(B) A State may, subject to the same conditions as set forth in 
subsection (c)(2) (excluding subparagraph (B) thereof, and deeming the 
reference to `subsections (a) and (b)' in subparagraph (D) thereof to 
include this subsection), use any amount transferred to the account of 
such State under this subsection for the administration of its 
unemployment compensation law and public employment offices.
    ``(6) Out of any money in the Federal unemployment account not 
otherwise appropriated, the Secretary of the Treasury shall reserve 
$7,000,000,000 for incentive payments under this subsection. Any amount 
so reserved shall not be taken into account for purposes of any 
determination under section 902, 910, or 1203 of the amount in the 
Federal unemployment account as of any given time. Any amount so 
reserved for which the Secretary of the Treasury has not received a 
certification under paragraph (4)(B) by the deadline described in 
paragraph (4)(C)(iii) shall, upon the close of fiscal year 2011, become 
unrestricted as to use as part of the Federal unemployment account.
    ``(7) For purposes of this subsection, the terms `benefit year', 
`base period', and `week' have the respective meanings given such terms 
under section 205 of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note).

       ``Special Transfer in Fiscal Year 2009 for Administration

    ``(g)(1) In addition to any other amounts, the Secretary of the 
Treasury shall transfer from the employment security administration 
account to the account of each State in the Unemployment Trust Fund, 
within 30 days after the date of the enactment of this subsection, the 
amount determined with respect to such State under paragraph (2).
    ``(2) The amount to be transferred under this subsection to a State 
account shall (as determined by the Secretary of Labor and certified by 
such Secretary to the Secretary of the Treasury) be equal to the amount 
obtained by multiplying $500,000,000 by the same ratio as determined 
under subsection (f)(1)(B) with respect to such State.
    ``(3) Any amount transferred to the account of a State as a result 
of the enactment of this subsection may be used by the State agency of 
such State only in the payment of expenses incurred by it for--
            ``(A) the administration of the provisions of its State law 
        carrying out the purposes of subsection (f)(2) or any 
        subparagraph of subsection (f)(3);
            ``(B) improved outreach to individuals who might be 
        eligible for regular unemployment compensation by virtue of any 
        provisions of the State law which are described in subparagraph 
        (A);
            ``(C) the improvement of unemployment benefit and 
        unemployment tax operations, including responding to increased 
        demand for unemployment compensation; and
            ``(D) staff-assisted reemployment services for unemployment 
        compensation claimants.''.
    (b) Regulations.--The Secretary of Labor may prescribe any 
regulations, operating instructions, or other guidance necessary to 
carry out the amendment made by subsection (a).

           Subtitle B--Assistance for Vulnerable Individuals

SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.

    (a) In General.--Section 403 of the Social Security Act (42 U.S.C. 
603) is amended by adding at the end the following:
    ``(c) Emergency Fund.--
            ``(1) Establishment.--There is established in the Treasury 
        of the United States a fund which shall be known as the 
        `Emergency Contingency Fund for State Temporary Assistance for 
        Needy Families Programs' (in this subsection referred to as the 
        `Emergency Fund').
            ``(2) Deposits into fund.--Out of any money in the Treasury 
        of the United States not otherwise appropriated, there are 
        appropriated such sums as are necessary for payment to the 
        Emergency Fund.
            ``(3) Grants.--
                    ``(A) Grant related to caseload increases.--
                            ``(i) In general.--For each calendar 
                        quarter in fiscal year 2009 or 2010, the 
                        Secretary shall make a grant from the Emergency 
                        Fund to each State that--
                                    ``(I) requests a grant under this 
                                subparagraph for the quarter; and
                                    ``(II) meets the requirement of 
                                clause (ii) for the quarter.
                            ``(ii) Caseload increase requirement.--A 
                        State meets the requirement of this clause for 
                        a quarter if the average monthly assistance 
                        caseload of the State for the quarter exceeds 
                        the average monthly assistance caseload of the 
                        State for the corresponding quarter in the 
                        emergency fund base year of the State.
                            ``(iii) Amount of grant.--Subject to 
                        paragraph (5), the amount of the grant to be 
                        made to a State under this subparagraph for a 
                        quarter shall be 80 percent of the amount (if 
                        any) by which the total expenditures of the 
                        State for basic assistance (as defined by the 
                        Secretary) in the quarter, whether under the 
                        State program funded under this part or as 
                        qualified State expenditures, exceeds the total 
                        expenditures of the State for such assistance 
                        for the corresponding quarter in the emergency 
                        fund base year of the State.
                    ``(B) Grant related to increased expenditures for 
                non-recurrent short term benefits.--
                            ``(i) In general.--For each calendar 
                        quarter in fiscal year 2009 or 2010, the 
                        Secretary shall make a grant from the Emergency 
                        Fund to each State that--
                                    ``(I) requests a grant under this 
                                subparagraph for the quarter; and
                                    ``(II) meets the requirement of 
                                clause (ii) for the quarter.
                            ``(ii) Non-recurrent short term expenditure 
                        requirement.--A State meets the requirement of 
                        this clause for a quarter if the total 
                        expenditures of the State for non-recurrent 
                        short term benefits in the quarter, whether 
                        under the State program funded under this part 
                        or as qualified State expenditures, exceeds the 
                        total such expenditures of the State for non-
                        recurrent short term benefits in the 
                        corresponding quarter in the emergency fund 
                        base year of the State.
                            ``(iii) Amount of grant.--Subject to 
                        paragraph (5), the amount of the grant to be 
                        made to a State under this subparagraph for a 
                        quarter shall be an amount equal to 80 percent 
                        of the excess described in clause (ii).
                    ``(C) Grant related to increased expenditures for 
                subsidized employment.--
                            ``(i) In general.--For each calendar 
                        quarter in fiscal year 2009 or 2010, the 
                        Secretary shall make a grant from the Emergency 
                        Fund to each State that--
                                    ``(I) requests a grant under this 
                                subparagraph for the quarter; and
                                    ``(II) meets the requirement of 
                                clause (ii) for the quarter.
                            ``(ii) Subsidized employment expenditure 
                        requirement.--A State meets the requirement of 
                        this clause for a quarter if the total 
                        expenditures of the State for subsidized 
                        employment in the quarter, whether under the 
                        State program funded under this part or as 
                        qualified State expenditures, exceeds the total 
                        of such expenditures of the State in the 
                        corresponding quarter in the emergency fund 
                        base year of the State.
                            ``(iii) Amount of grant.--Subject to 
                        paragraph (5), the amount of the grant to be 
                        made to a State under this subparagraph for a 
                        quarter shall be an amount equal to 80 percent 
                        of the excess described in clause (ii).
            ``(4) Authority to make necessary adjustments to data and 
        collect needed data.--In determining the size of the caseload 
        of a State and the expenditures of a State for basic 
        assistance, non-recurrent short-term benefits, and subsidized 
        employment, during any period for which the State requests 
        funds under this subsection, and during the emergency fund base 
        year of the State, the Secretary may make appropriate 
        adjustments to the data to ensure that the data reflect 
        expenditures under the State program funded under this part and 
        qualified State expenditures. The Secretary may develop a 
        mechanism for collecting expenditure data, including procedures 
        which allow States to make reasonable estimates, and may set 
        deadlines for making revisions to the data.
            ``(5) Limitation.--The total amount payable to a single 
        State under subsection (b) and this subsection for a fiscal 
        year shall not exceed 25 percent of the State family assistance 
        grant.
            ``(6) Limitations on use of funds.--A State to which an 
        amount is paid under this subsection may use the amount only as 
        authorized by section 404.
            ``(7) Timing of implementation.--The Secretary shall 
        implement this subsection as quickly as reasonably possible, 
        pursuant to appropriate guidance to States.
            ``(8) Definitions.--In this subsection:
                    ``(A) Average monthly assistance caseload.--The 
                term `average monthly assistance caseload' means, with 
                respect to a State and a quarter, the number of 
                families receiving assistance during the quarter under 
                the State program funded under this part or as 
                qualified State expenditures, subject to adjustment 
                under paragraph (4).
                    ``(B) Emergency fund base year.--
                            ``(i) In general.--The term `emergency fund 
                        base year' means, with respect to a State and a 
                        category described in clause (ii), whichever of 
                        fiscal year 2007 or 2008 is the fiscal year in 
                        which the amount described by the category with 
                        respect to the State is the lesser.
                            ``(ii) Categories described.--The 
                        categories described in this clause are the 
                        following:
                                    ``(I) The average monthly 
                                assistance caseload of the State.
                                    ``(II) The total expenditures of 
                                the State for non-recurrent short term 
                                benefits, whether under the State 
                                program funded under this part or as 
                                qualified State expenditures.
                                    ``(III) The total expenditures of 
                                the State for subsidized employment, 
                                whether under the State program funded 
                                under this part or as qualified State 
                                expenditures.
                    ``(C) Qualified state expenditures.--The term 
                `qualified State expenditures' has the meaning given 
                the term in section 409(a)(7).''.
    (b) Temporary Modification of Caseload Reduction Credit.--Section 
407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by 
inserting ``(or if the immediately preceding fiscal year is fiscal year 
2009 or 2010, then, at State option, during the emergency fund base 
year of the State with respect to the average monthly assistance 
caseload of the State (within the meaning of section 403(c)(8)(B)))'' 
before ``under the State''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 2102. ONE-TIME EMERGENCY PAYMENT TO SSI RECIPIENTS.

    (a) Payment Authority.--
            (1) In general.--At the earliest practicable date in 
        calendar year 2009 but not later than 120 days after the date 
        of the enactment of this section, the Commissioner of Social 
        Security shall make a one-time payment to each individual who 
        is determined by the Commissioner in calendar year 2009 to be 
        an individual who--
                    (A) is entitled to a cash benefit under the 
                supplemental security income program under title XVI of 
                the Social Security Act (other than pursuant to section 
                1611(e)(1)(B) of such Act) for at least 1 day in the 
                calendar month in which the first payment under this 
                section is to be made; or
                    (B)(i) was entitled to such a cash benefit (other 
                than pursuant to section 1611(e)(1)(B) of such Act) for 
                at least 1 day in the 2-month period preceding that 
                calendar month; and
                    (ii) whose entitlement to that benefit ceased in 
                that 2-month period solely because the income of the 
                individual (and the income of the spouse, if any, of 
                the individual) exceeded the applicable income limit 
                described in paragraph (1)(A) or (2)(A) of section 
                1611(a) of such Act.
            (2) Amount of payment.--Subject to subsection (b)(1) of 
        this section, the amount of the payment shall be--
                    (A) in the case of an individual eligible for a 
                payment under this section who does not have a spouse 
                eligible for such a payment, an amount equal to the 
                average of the cash benefits payable in the aggregate 
                under section 1611 or 1619(a) of the Social Security 
                Act to eligible individuals who do not have an eligible 
                spouse, for the most recent month for which data on 
                payment of the benefits are available, as determined by 
                the Commissioner of Social Security; or
                    (B) in the case of an individual eligible for a 
                payment under this section who has a spouse eligible 
                for such a payment, an amount equal to the average of 
                the cash benefits payable in the aggregate under 
                section 1611 or 1619(a) of the Social Security Act to 
                eligible individuals who have an eligible spouse, for 
                the most recent month for which data on payment of the 
                benefits are available, as so determined.
    (b) Administrative Provisions.--
            (1) Authority to withhold payment to recover prior 
        overpayment of ssi benefits.--The Commissioner of Social 
        Security may withhold part or all of a payment otherwise 
        required to be made under subsection (a) of this section to an 
        individual, in order to recover a prior overpayment of benefits 
        to the individual under the supplemental security income 
        program under title XVI of the Social Security Act, subject to 
        the limitations of section 1631(b) of such Act.
            (2) Payment to be disregarded in determining underpayments 
        under the ssi program.--A payment under subsection (a) shall be 
        disregarded in determining whether there has been an 
        underpayment of benefits under the supplemental security income 
        program under title XVI of the Social Security Act.
            (3) Nonassignment.--The provisions of section 1631(d) of 
        the Social Security Act shall apply with respect to payments 
        under this section to the same extent as they apply in the case 
        of title XVI of such Act.
    (c) Payments To Be Disregarded for Purposes of All Federal and 
Federally Assisted Programs.--A payment under subsection (a) shall not 
be regarded as income to the recipient, and shall not be regarded as a 
resource of the recipient for the month of receipt and the following 6 
months, for purposes of determining the eligibility of any individual 
for benefits or assistance, or the amount or extent of benefits or 
assistance, under any Federal program or under any State or local 
program financed in whole or in part with Federal funds.
    (d) Appropriation.--Out of any sums in the Treasury of the United 
States not otherwise appropriated, there are appropriated such sums as 
may be necessary to carry out this section.

SEC. 2103. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW.

    During the period that begins with October 1, 2008, and ends with 
September 30, 2010, section 455(a)(1) of the Social Security Act shall 
be applied and administered as if the phrase ``from amounts paid to the 
State under section 458 or'' did not appear in such section.

       TITLE III--HEALTH INSURANCE ASSISTANCE FOR THE UNEMPLOYED

SEC. 3001. SHORT TITLE AND TABLE OF CONTENTS OF TITLE.

    (a) Short Title of Title.--This title may be cited as the ``Health 
Insurance Assistance for the Unemployed Act of 2009''.
    (b) Table of Contents of Title.--The table of 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.

SEC. 3002. PREMIUM ASSISTANCE FOR COBRA BENEFITS AND EXTENSION OF COBRA 
              BENEFITS FOR OLDER OR LONG-TERM EMPLOYEES.

    (a) Premium Assistance for COBRA Continuation Coverage for 
Individuals and Their Families.--
            (1) Provision of premium assistance.--
                    (A) Reduction of premiums payable.--In the case of 
                any premium for a period of coverage beginning on or 
                after the date of the enactment of this Act for COBRA 
                continuation coverage with respect to any assistance 
                eligible individual, such individual shall be treated 
                for purposes of any COBRA continuation provision as 
                having paid the amount of such premium if such 
                individual pays 35 percent of the amount of such 
                premium (as determined without regard to this 
                subsection).
                    (B) Premium reimbursement.--For provisions 
                providing the balance of such premium, see section 6431 
                of the Internal Revenue Code of 1986, as added by 
                paragraph (12).
            (2) Limitation of period of premium assistance.--
                    (A) In general.--Paragraph (1)(A) shall not apply 
                with respect to any assistance eligible individual for 
                months of coverage beginning on or after the earlier 
                of--
                            (i) the first date that such individual is 
                        eligible for coverage under any other group 
                        health plan (other than coverage consisting of 
                        only dental, vision, counseling, or referral 
                        services (or a combination thereof), coverage 
                        under a health reimbursement arrangement or a 
                        health flexible spending arrangement, or 
                        coverage of treatment that is furnished in an 
                        on-site medical facility maintained by the 
                        employer and that consists primarily of first-
                        aid services, prevention and wellness care, or 
                        similar care (or a combination thereof)) or is 
                        eligible for benefits under title XVIII of the 
                        Social Security Act, or
                            (ii) the earliest of--
                                    (I) the date which is 12 months 
                                after the first day of the first month 
                                that paragraph (1)(A) applies with 
                                respect to such individual,
                                    (II) the date following the 
                                expiration of the maximum period of 
                                continuation coverage required under 
                                the applicable COBRA continuation 
                                coverage provision, or
                                    (III) the date following the 
                                expiration of the period of 
                                continuation coverage allowed under 
                                paragraph (4)(B)(ii).
                    (B) Timing of eligibility for additional 
                coverage.--For purposes of subparagraph (A)(i), an 
                individual shall not be treated as eligible for 
                coverage under a group health plan before the first 
                date on which such individual could be covered under 
                such plan.
                    (C) Notification requirement.--An assistance 
                eligible individual shall notify in writing the group 
                health plan with respect to which paragraph (1)(A) 
                applies if such paragraph ceases to apply by reason of 
                subparagraph (A)(i). Such notice shall be provided to 
                the group health plan in such time and manner as may be 
                specified by the Secretary of Labor.
            (3) Assistance eligible individual.--For purposes of this 
        section, the term ``assistance eligible individual'' means any 
        qualified beneficiary if--
                    (A) at any time during the period that begins with 
                September 1, 2008, and ends with December 31, 2009, 
                such qualified beneficiary is eligible for COBRA 
                continuation coverage,
                    (B) such qualified beneficiary elects such 
                coverage, and
                    (C) the qualifying event with respect to the COBRA 
                continuation coverage consists of the involuntary 
                termination of the covered employee's employment and 
                occurred during such period.
            (4) Extension of election period and effect on coverage.--
                    (A) In general.--Notwithstanding section 605(a) of 
                the Employee Retirement Income Security Act of 1974, 
                section 4980B(f)(5)(A) of the Internal Revenue Code of 
                1986, section 2205(a) of the Public Health Service Act, 
                and section 8905a(c)(2) of title 5, United States Code, 
                in the case of an individual who is a qualified 
                beneficiary described in paragraph (3)(A) as of the 
                date of the enactment of this Act and has not made the 
                election referred to in paragraph (3)(B) as of such 
                date, such individual may elect the COBRA continuation 
                coverage under the COBRA continuation coverage 
                provisions containing such sections during the 60-day 
                period commencing with the date on which the 
                notification required under paragraph (7)(C) is 
                provided to such individual.
                    (B) Commencement of coverage; no reach-back.--Any 
                COBRA continuation coverage elected by a qualified 
                beneficiary during an extended election period under 
                subparagraph (A)--
                            (i) shall commence on the date of the 
                        enactment of this Act, and
                            (ii) shall not extend beyond the period of 
                        COBRA continuation coverage that would have 
                        been required under the applicable COBRA 
                        continuation coverage provision if the coverage 
                        had been elected as required under such 
                        provision.
                    (C) Preexisting conditions.--With respect to a 
                qualified beneficiary who elects COBRA continuation 
                coverage pursuant to subparagraph (A), the period--
                            (i) beginning on the date of the qualifying 
                        event, and
                            (ii) ending with the day before the date of 
                        the enactment of this Act,
                shall be disregarded for purposes of determining the 
                63-day periods referred to in section 701)(2) of the 
                Employee Retirement Income Security Act of 1974, 
                section 9801(c)(2) of the Internal Revenue Code of 
                1986, and section 2701(c)(2) of the Public Health 
                Service Act.
            (5) Expedited review of denials of premium assistance.--In 
        any case in which an individual requests treatment as an 
        assistance eligible individual and is denied such treatment by 
        the group health plan by reason of such individual's 
        ineligibility for COBRA continuation coverage, the Secretary of 
        Labor (or the Secretary of Health and Human services in 
        connection with COBRA continuation coverage which is provided 
        other than pursuant to part 6 of subtitle B of title I of the 
        Employee Retirement Income Security Act of 1974), in 
        consultation with the Secretary of the Treasury, shall provide 
        for expedited review of such denial. An individual shall be 
        entitled to such review upon application to such Secretary in 
        such form and manner as shall be provided by such Secretary. 
        Such Secretary shall make a determination regarding such 
        individual's eligibility within 10 business days after receipt 
        of such individual's application for review under this 
        paragraph.
            (6) Disregard of subsidies for purposes of federal and 
        state programs.--Notwithstanding any other provision of law, 
        any premium reduction with respect to an assistance eligible 
        individual under this subsection shall not be considered income 
        or resources in determining eligibility for, or the amount of 
        assistance or benefits provided under, any other public benefit 
        provided under Federal law or the law of any State or political 
        subdivision thereof.
            (7) Notices to individuals.--
                    (A) General notice.--
                            (i) In general.--In the case of notices 
                        provided under section 606(4) of the Employee 
                        Retirement Income Security Act of 1974 (29 
                        U.S.C. 1166(4)), section 4980B(f)(6)(D) of the 
                        Internal Revenue Code of 1986, section 2206(4) 
                        of the Public Health Service Act (42 U.S.C. 
                        300bb-6(4)), or section 8905a(f)(2)(A) of title 
                        5, United States Code, with respect to 
                        individuals who, during the period described in 
                        paragraph (3)(A), become entitled to elect 
                        COBRA continuation coverage, such notices shall 
                        include an additional notification to the 
                        recipient of the availability of premium 
                        reduction with respect to such coverage under 
                        this subsection.
                            (ii) Alternative notice.--In the case of 
                        COBRA continuation coverage to which the notice 
                        provision under such sections does not apply, 
                        the Secretary of Labor, in consultation with 
                        the Secretary of the Treasury and the Secretary 
                        of Health and Human Services, shall, in 
                        coordination with administrators of the group 
                        health plans (or other entities) that provide 
                        or administer the COBRA continuation coverage 
                        involved, provide rules requiring the provision 
                        of such notice.
                            (iii) Form.--The requirement of the 
                        additional notification under this subparagraph 
                        may be met by amendment of existing notice 
                        forms or by inclusion of a separate document 
                        with the notice otherwise required.
                    (B) Specific requirements.--Each additional 
                notification under subparagraph (A) shall include--
                            (i) the forms necessary for establishing 
                        eligibility for premium reduction under this 
                        subsection,
                            (ii) the name, address, and telephone 
                        number necessary to contact the plan 
                        administrator and any other person maintaining 
                        relevant information in connection with such 
                        premium reduction,
                            (iii) a description of the extended 
                        election period provided for in paragraph 
                        (4)(A),
                            (iv) a description of the obligation of the 
                        qualified beneficiary under paragraph (2)(C) to 
                        notify the plan providing continuation coverage 
                        of eligibility for subsequent coverage under 
                        another group health plan or eligibility for 
                        benefits under title XVIII of the Social 
                        Security Act and the penalty provided for 
                        failure to so notify the plan, and
                            (v) a description, displayed in a prominent 
                        manner, of the qualified beneficiary's right to 
                        a reduced premium and any conditions on 
                        entitlement to the reduced premium.
                    (C) Notice relating to retroactive coverage.--In 
                the case of an individual described in paragraph (3)(A) 
                who has elected COBRA continuation coverage as of the 
                date of enactment of this Act or an individual 
                described in paragraph (4)(A), the administrator of the 
                group health plan (or other entity) involved shall 
                provide (within 60 days after the date of enactment of 
                this Act) for the additional notification required to 
                be provided under subparagraph (A).
                    (D) Model notices.--Not later than 30 days after 
                the date of enactment of this Act, the Secretary of the 
                Labor, in consultation with the Secretary of the 
                Treasury and the Secretary of Health and Human 
                Services, shall prescribe models for the additional 
                notification required under this paragraph.
            (8) Safeguards.--The Secretary of the Treasury shall 
        provide such rules, procedures, regulations, and other guidance 
        as may be necessary and appropriate to prevent fraud and abuse 
        under this subsection.
            (9) Outreach.--The Secretary of Labor, in consultation with 
        the Secretary of the Treasury and the Secretary of Health and 
        Human Services, shall provide outreach consisting of public 
        education and enrollment assistance relating to premium 
        reduction provided under this subsection. Such outreach shall 
        target employers, group health plan administrators, public 
        assistance programs, States, insurers, and other entities as 
        determined appropriate by such Secretaries. Such outreach shall 
        include an initial focus on those individuals electing 
        continuation coverage who are referred to in paragraph (7)(C). 
        Information on such premium reduction, including enrollment, 
        shall also be made available on website of the Departments of 
        Labor, Treasury, and Health and Human Services.
            (10) Definitions.--For purposes of this subsection--
                    (A) Administrator.--The term ``administrator'' has 
                the meaning given such term in section 3(16) of the 
                Employee Retirement Income Security Act of 1974.
                    (B) COBRA continuation coverage.--The term ``COBRA 
                continuation coverage'' means continuation coverage 
                provided pursuant to part 6 of subtitle B of title I of 
                the Employee Retirement Income Security Act of 1974 
                (other than under section 609), title XXII of the 
                Public Health Service Act, section 4980B of the 
                Internal Revenue Code of 1986 (other than subsection 
                (f)(1) of such section insofar as it relates to 
                pediatric vaccines), or section 8905a of title 5, 
                United States Code, or under a State program that 
                provides continuation coverage comparable to such 
                continuation coverage. Such term does not include 
                coverage under a health flexible spending arrangement.
                    (C) COBRA continuation provision.--The term ``COBRA 
                continuation provision'' means the provisions of law 
                described in subparagraph (B).
                    (D) Covered employee.--The term ``covered 
                employee'' has the meaning given such term in section 
                607(2) of the Employee Retirement Income Security Act 
                of 1974.
                    (E) Qualified beneficiary.--The term ``qualified 
                beneficiary'' has the meaning given such term in 
                section 607(3) of the Employee Retirement Income 
                Security Act of 1974.
                    (F) Group health plan.--The term ``group health 
                plan'' has the meaning given such term in section 
                607(1) of the Employee Retirement Income Security Act 
                of 1974.
                    (G) State.--The term ``State'' includes the 
                District of Columbia, the Commonwealth of Puerto Rico, 
                the Virgin Islands, Guam, American Samoa, and the 
                Commonwealth of the Northern Mariana Islands.
            (11) Reports.--
                    (A) Interim report.--The Secretary of the Treasury 
                shall submit an interim report to the Committee on 
                Education and Labor, the Committee on Ways and Means, 
                and the Committee on Energy and Commerce of the House 
                of Representatives and the Committee on Health, 
                Education, Labor, and Pensions and the Committee on 
                Finance of the Senate regarding the premium reduction 
                provided under this subsection that includes--
                            (i) the number of individuals provided such 
                        assistance as of the date of the report; and
                            (ii) the total amount of expenditures 
                        incurred (with administrative expenditures 
                        noted separately) in connection with such 
                        assistance as of the date of the report.
                    (B) Final report.--As soon as practicable after the 
                last period of COBRA continuation coverage for which 
                premium reduction is provided under this section, the 
                Secretary of the Treasury shall submit a final report 
                to each Committee referred to in subparagraph (A) that 
                includes--
                            (i) the number of individuals provided 
                        premium reduction under this section;
                            (ii) the average dollar amount (monthly and 
                        annually) of premium reductions provided to 
                        such individuals; and
                            (iii) the total amount of expenditures 
                        incurred (with administrative expenditures 
                        noted separately) in connection with premium 
                        reduction under this section.
            (12) COBRA premium assistance.--
                    (A) In general.--Subchapter B of chapter 65 of the 
                Internal Revenue Code of 1986 is amended by adding at 
                the end the following new section:

``SEC. 6431. COBRA PREMIUM ASSISTANCE.

    ``(a) In General.--The entity to whom premiums are payable under 
COBRA continuation coverage shall be reimbursed for the amount of 
premiums not paid by plan beneficiaries by reason of section 3002(a) of 
the Health Insurance Assistance for the Unemployed Act of 2009. Such 
amount shall be treated as a credit against the requirement of such 
entity to make deposits of payroll taxes and the liability of such 
entity for payroll taxes. To the extent that such amount exceeds the 
amount of such taxes, the Secretary shall pay to such entity the amount 
of such excess. No payment may be made under this subsection to an 
entity with respect to any assistance eligible individual until after 
such entity has received the reduced premium from such individual 
required under section 3002(a)(1)(A) of such Act.
    ``(b) Payroll Taxes.--For purposes of this section, the term 
`payroll taxes' means--
            ``(1) amounts required to be deducted and withheld for the 
        payroll period under section 3401 (relating to wage 
        withholding),
            ``(2) amounts required to be deducted for the payroll 
        period under section 3102 (relating to FICA employee taxes), 
        and
            ``(3) amounts of the taxes imposed for the payroll period 
        under section 3111 (relating to FICA employer taxes).
    ``(c) Treatment of Credit.--Except as otherwise provided by the 
Secretary, the credit described in subsection (a) shall be applied as 
though the employer had paid to the Secretary, on the day that the 
qualified beneficiary's premium payment is received, an amount equal to 
such credit.
    ``(d) Treatment of Payment.--For purposes of section 1324(b)(2) of 
title 31, United States Code, any payment under this section shall be 
treated in the same manner as a refund of the credit under section 35.
    ``(e) Reporting.--
            ``(1) In general.--Each entity entitled to reimbursement 
        under subsection (a) for any period shall submit such reports 
        as the Secretary may require, including--
                    ``(A) an attestation of involuntary termination of 
                employment for each covered employee on the basis of 
                whose termination entitlement to reimbursement is 
                claimed under subsection (a), and
                    ``(B) a report of the amount of payroll taxes 
                offset under subsection (a) for the reporting period 
                and the estimated offsets of such taxes for the 
                subsequent reporting period in connection with 
                reimbursements under subsection (a).
            ``(2) Timing of reports relating to amount of payroll 
        taxes.--Reports required under paragraph (1)(B) shall be 
        submitted at the same time as deposits of taxes imposed by 
        chapters 21, 22, and 24 or at such time as is specified by the 
        Secretary.
    ``(f) Regulations.--The Secretary may issue such regulations or 
other guidance as may be necessary or appropriate to carry out this 
section, including the requirement to report information or the 
establishment of other methods for verifying the correct amounts of 
payments and credits under this section. The Secretary shall issue such 
regulations or guidance with respect to the application of this section 
to group health plans that are multiemployer plans (as defined in 
section 3(37) of the Employee Retirement Income Security Act of 
1974).''.
                    (B) Social security trust funds held harmless.--In 
                determining any amount transferred or appropriated to 
                any fund under the Social Security Act, section 6431 of 
                the Internal Revenue Code of 1986 shall not be taken 
                into account.
                    (C) Clerical amendment.--The table of sections for 
                subchapter B of chapter 65 of the Internal Revenue Code 
                of 1986 is amended by adding at the end the following 
                new item:

``Sec. 6431. COBRA premium assistance.''.
                    (D) Effective date.--The amendments made by this 
                paragraph shall apply to premiums to which subsection 
                (a)(1)(A) applies.
            (13) Penalty for failure to notify health plan of cessation 
        of eligibility for premium assistance.--
                    (A) In general.--Part I of subchapter B of chapter 
                68 of the Internal Revenue Code of 1986 is amended by 
                adding at the end the following new section:

``SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF CESSATION OF 
              ELIGIBILITY FOR COBRA PREMIUM ASSISTANCE.

    ``(a) In General.--Any person required to notify a group health 
plan under section 3002(a)(2)(C)) of the Health Insurance Assistance 
for the Unemployed Act of 2009 who fails to make such a notification at 
such time and in such manner as the Secretary of Labor may require 
shall pay a penalty of 110 percent of the premium reduction provided 
under such section after termination of eligibility under such 
subsection.
    ``(b) Reasonable Cause Exception.--No penalty shall be imposed 
under subsection (a) with respect to any failure if it is shown that 
such failure is due to reasonable cause and not to willful neglect.''.
                    (B) Clerical amendment.--The table of sections of 
                part I of subchapter B of chapter 68 of such Code is 
                amended by adding at the end the following new item:

``Sec. 6720C. Penalty for failure to notify health plan of cessation of 
                            eligibility for COBRA premium 
                            assistance.''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to failures occurring after the 
                date of the enactment of this Act.
            (14) Coordination with hctc.--
                    (A) In general.--Subsection (g) of section 35 of 
                the Internal Revenue Code of 1986 is amended by 
                redesignating paragraph (9) as paragraph (10) and 
                inserting after paragraph (8) the following new 
                paragraph:
            ``(9) COBRA premium assistance.--In the case of an 
        assistance eligible individual who receives premium reduction 
        for COBRA continuation coverage under section 3002(a) of the 
        Health Insurance Assistance for the Unemployed Act of 2009 for 
        any month during the taxable year, such individual shall not be 
        treated as an eligible individual, a certified individual, or a 
        qualifying family member for purposes of this section or 
        section 7527 with respect to such month.''.
                    (B) Effective date.--The amendment made by 
                subparagraph (A) shall apply to taxable years ending 
                after the date of the enactment of this Act.
            (15) Exclusion of cobra premium assistance from gross 
        income.--
                    (A) In general.--Part III of subchapter B of 
                chapter 1 of the Internal Revenue Code of 1986 is 
                amended by inserting after section 139B the following 
                new section:

``SEC. 139C. COBRA PREMIUM ASSISTANCE.

    ``In the case of an assistance eligible individual (as defined in 
section 3002 of the Health Insurance Assistance for the Unemployed Act 
of 2009), gross income does not include any premium reduction provided 
under subsection (a) of such section.''.
                    (B) Clerical amendment.--The table of sections for 
                part III of subchapter B of chapter 1 of such Code is 
                amended by inserting after the item relating to section 
                139B the following new item:

``Sec. 139C. COBRA premium assistance.''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to taxable years ending after the 
                date of the enactment of this Act.
    (b) Extension of COBRA Benefits for Older or Long-Term Employees.--
            (1) ERISA amendment.--Section 602(2)(A) of the Employee 
        Retirement Income Security Act of 1974 is amended by adding at 
        the end the following new clauses:
                            ``(x) Special rule for older or long-term 
                        employees generally.--In the case of a 
                        qualifying event described in section 603(2) 
                        with respect to a covered employee who (as of 
                        such qualifying event) has attained age 55 or 
                        has completed 10 or more years of service with 
                        the entity that is the employer at the time of 
                        the qualifying event, clauses (i) and (ii) 
                        shall not apply. For purposes of this clause, 
                        in the case of a group health plan that is a 
                        multiemployer plan, service by the covered 
                        employee performed for 2 or more employers 
                        during periods for which such employers 
                        contributed to such plan shall be treated as 
                        service performed for the entity referred to in 
                        the preceding sentence.
                            ``(xi) Year of service.-- For purposes of 
                        this subparagraph, the term `year of service' 
                        shall have the meaning provided in section 
                        202(a)(3).''.
            (2) IRC amendment.--Clause (i) of section 4980B(f)(2)(B) of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new subclauses:
                                    ``(X) Special rule for older or 
                                long-term employees generally.--In the 
                                case of a qualifying event described in 
                                paragraph (3)(B) with respect to a 
                                covered employee who (as of such 
                                qualifying event) has attained age 55 
                                or has completed 10 or more years of 
                                service with the entity that is the 
                                employer at the time of the qualifying 
                                event, subclauses (I) and (II) shall 
                                not apply. For purposes of this 
                                subclause, in the case of a group 
                                health plan that is a multiemployer 
                                plan (as defined in section 3(37) of 
                                the Employee Retirement Income Security 
                                Act of 1974), service by the covered 
                                employee performed for 2 or more 
                                employers during periods for which such 
                                employers contributed to such plan 
                                shall be treated as service performed 
                                for the entity referred to in the 
                                preceding sentence.
                                    ``(XI) Year of service.-- For 
                                purposes of this clause, the term `year 
                                of service' shall have the meaning 
                                provided in section 202(a)(3) of the 
                                Employee Retirement Income Security Act 
                                of 1974.''.
            (3) PHSA amendment.--Section 2202(2)(A) of the Public 
        Health Service Act is amended by adding at the end the 
        following new clauses:
                            ``(viii) Special rule for older or long-
                        term employees generally.--In the case of a 
                        qualifying event described in section 2203(2) 
                        with respect to a covered employee who (as of 
                        such qualifying event) has attained age 55 or 
                        has completed 10 or more years of service with 
                        the entity that is the employer at the time of 
                        the qualifying event, clauses (i) and (ii) 
                        shall not apply. For purposes of this clause, 
                        in the case of a group health plan that is a 
                        multiemployer plan (as defined in section 3(37) 
                        of the Employee Retirement Income Security Act 
                        of 1974), service by the covered employee 
                        performed for 2 or more employers during 
                        periods for which such employers contributed to 
                        such plan shall be treated as service performed 
                        for the entity referred to in the preceding 
                        sentence.
                            ``(ix) Year of service.-- For purposes of 
                        this subparagraph, the term `year of service' 
                        shall have the meaning provided in section 
                        202(a)(3) of the Employee Retirement Income 
                        Security Act of 1974.''.
            (4) Effective date of amendments.--The amendments made by 
        this subsection shall apply to periods of coverage which would 
        (without regard to the amendments made by this section) end on 
        or after the date of the enactment of this Act.

SEC. 3003. TEMPORARY OPTIONAL MEDICAID COVERAGE FOR THE UNEMPLOYED.

    (a) In General.--Section 1902 of the Social Security Act (42 U.S.C. 
1396b) is amended--
            (1) in subsection (a)(10)(A)(ii)--
                    (A) by striking ``or'' at the end of subclause 
                (XVIII);
                    (B) by adding ``or'' at the end of subclause (XIX); 
                and
                    (C) by adding at the end the following new 
                subclause
                                    ``(XX) who are described in 
                                subsection (dd)(1) (relating to certain 
                                unemployed individuals and their 
                                families);''; and
            (2) by adding at the end the following new subsection:
    ``(dd)(1) Individuals described in this paragraph are--
    ``(A) individuals who--
            ``(i) are within one or more of the categories described in 
        paragraph (2), as elected under the State plan; and
            ``(ii) meet the applicable requirements of paragraph (3); 
        and
    ``(B) individuals who--
            ``(i) are the spouse, or dependent child under 19 years of 
        age, of an individual described in subparagraph (A); and
            ``(ii) meet the requirement of paragraph (3)(B).
    ``(2) The categories of individuals described in this paragraph are 
each of the following:
            ``(A)(i) Individuals who are receiving unemployment 
        compensation benefits; and
            ``(ii) individuals who were receiving, but have exhausted, 
        unemployment compensation benefits on or after July 1, 2008.
            ``(B) Individuals who are involuntarily unemployed and were 
        involuntarily separated from employment on or after September 
        1, 2008, and before January 1, 2011, whose family gross income 
        does not exceed a percentage specified by the State (not to 
        exceed 200 percent) of the income official poverty line (as 
        defined by the Office of Management and Budget, and revised 
        annually in accordance with section 673(2) of the Omnibus 
        Budget Reconciliation Act of 1981) applicable to a family of 
        the size involved, and who, but for subsection 
        (a)(10)(A)(ii)(XX), are not eligible for medical assistance 
        under this title or health assistance under title XXI.
            ``(C) Individuals who are involuntarily unemployed and were 
        involuntarily separated from employment on or after September 
        1, 2008, and before January 1, 2011, who are members of 
        households participating in the supplemental nutrition 
        assistance program established under the Food and Nutrition Act 
        of 2008 (7 U.S.C. 2011 et seq), and who, but for subsection 
        (a)(10)(A)(ii)(XX), are not eligible for medical assistance 
        under this title or health assistance under title XXI.
    ``(3) The requirements of this paragraph with respect to an 
individual are the following:
            ``(A) In the case of individuals within a category 
        described in subparagraph (A)(i) of paragraph (2), the 
        individual was involuntarily separated from employment on or 
        after September 1, 2008, and before January 1, 2011, or meets 
        such comparable requirement as the Secretary specifies through 
        rule, guidance, or otherwise in the case of an individual who 
        was an independent contractor.
            ``(B) The individual is not otherwise covered under 
        creditable coverage, as defined in section 2701(c) of the 
        Public Health Service Act (42 U.S.C. 300gg(c)), but applied 
        without regard to paragraph (1)(F) of such section and without 
        regard to coverage provided by reason of the application of 
        subsection (a)(10)(A)(ii)(XX).
    ``(4)(A) No income or resources test shall be applied with respect 
to any category of individuals described in subparagraph (A) or (C) of 
paragraph (2) who are eligible for medical assistance only by reason of 
the application of subsection (a)(10)(A)(ii)(XX).
    ``(B) Nothing in this subsection shall be construed to prevent a 
State from imposing a resource test for the category of individuals 
described in paragraph (2)(B)).
    ``(C) In the case of individuals described in paragraph (2)(A) or 
(2)(C), the requirements of subsections (i)(22) and (x) in section 1903 
shall not apply.''.
    (b) 100 Percent Federal Matching Rate.--
            (1) FMAP for time-limited period.--The third sentence of 
        section 1905(b) of such Act (42 U.S.C. 1396d(b)) is amended by 
        inserting before the period at the end the following: ``and for 
        items and services furnished on or after the date of enactment 
        of this Act and before January 1, 2011, to individuals who are 
        eligible for medical assistance only by reason of the 
        application of section 1902(a)(10)(A)(ii)(XX)''.
            (2) Certain enrollment-related administrative costs.--
        Notwithstanding any other provision of law, for purposes of 
        applying section 1903(a) of the Social Security Act (42 U.S.C. 
        1396b(a)), with respect to expenditures incurred on or after 
        the date of the enactment of this Act and before January 1, 
        2011, for costs of administration (including outreach and the 
        modification and operation of eligibility information systems) 
        attributable to eligibility determination and enrollment of 
        individuals who are eligible for medical assistance only by 
        reason of the application of section 1902(a)(10)(A)(ii)(XX) of 
        such Act, as added by subsection (a)(1), the Federal matching 
        percentage shall be 100 percent instead of the matching 
        percentage otherwise applicable.
    (c) Conforming Amendments.--(1) Section 1903(f)(4) of such Act (42 
U.S.C. 1396c(f)(4)) is amended by inserting ``1902(a)(10)(A)(ii)(XX), 
or'' after ``1902(a)(10)(A)(ii)(XIX),''.
    (2) Section 1905(a) of such Act (42 U.S.C. 1396d(a)) is amended, in 
the matter preceding paragraph (1)--
            (A) by striking ``or'' at the end of clause (xii);
            (B) by adding ``or'' at the end of clause (xiii); and
            (C) by inserting after clause (xiii) the following new 
        clause:
                            ``(xiv) individuals described in section 
                        1902(dd)(1),''.

                TITLE IV--HEALTH INFORMATION TECHNOLOGY

SEC. 4001. SHORT TITLE; TABLE OF CONTENTS OF TITLE.

    (a) Short Title.--This title may be cited as the ``Health 
Information Technology for Economic and Clinical Health Act'' or the 
``HITECH Act''.
    (b) Table of Contents of Title.--The table of contents of this 
title is as follows:

Sec. 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.
          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.
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.

         Subtitle A--Promotion of Health Information Technology

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

SEC. 4101. ONCHIT; STANDARDS DEVELOPMENT AND ADOPTION.

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

         ``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY

``SEC. 3000. DEFINITIONS.

    ``In this title:
            ``(1) Certified ehr technology.--The term `certified EHR 
        technology' means a qualified electronic health record that is 
        certified pursuant to section 3001(c)(5) as meeting standards 
        adopted under section 3004 that are applicable to the type of 
        record involved (as determined by the Secretary, such as an 
        ambulatory electronic health record for office-based physicians 
        or an inpatient hospital electronic health record for 
        hospitals).
            ``(2) Enterprise integration.--The term `enterprise 
        integration' means the electronic linkage of health care 
        providers, health plans, the government, and other interested 
        parties, to enable the electronic exchange and use of health 
        information among all the components in the health care 
        infrastructure in accordance with applicable law, and such term 
        includes related application protocols and other related 
        standards.
            ``(3) Health care provider.--The term `health care 
        provider' means a hospital, skilled nursing facility, nursing 
        facility, home health entity or other long term care facility, 
        health care clinic, Federally qualified health center, group 
        practice (as defined in section 1877(h)(4) of the Social 
        Security Act), a pharmacist, a pharmacy, a laboratory, a 
        physician (as defined in section 1861(r) of the Social Security 
        Act), a practitioner (as described in section 1842(b)(18)(C) of 
        the Social Security Act), a provider operated by, or under 
        contract with, the Indian Health Service or by an Indian tribe 
        (as defined in the Indian Self-Determination and Education 
        Assistance Act), tribal organization, or urban Indian 
        organization (as defined in section 4 of the Indian Health Care 
        Improvement Act), a rural health clinic, a covered entity under 
        section 340B, an ambulatory surgical center described in 
        section 1833(i) of the Social Security Act, and any other 
        category of facility or clinician determined appropriate by the 
        Secretary.
            ``(4) Health information.--The term `health information' 
        has the meaning given such term in section 1171(4) of the 
        Social Security Act.
            ``(5) Health information technology.--The term `health 
        information technology' means hardware, software, integrated 
        technologies and related licenses, intellectual property, 
        upgrades, and packaged solutions sold as services that are 
        specifically designed for use by health care entities for the 
        electronic creation, maintenance, or exchange of health 
        information.
            ``(6) Health plan.--The term `health plan' has the meaning 
        given such term in section 1171(5) of the Social Security Act.
            ``(7) HIT policy committee.--The term `HIT Policy 
        Committee' means such Committee established under section 
        3002(a).
            ``(8) HIT standards committee.--The term `HIT Standards 
        Committee' means such Committee established under section 
        3003(a).
            ``(9) Individually identifiable health information.--The 
        term `individually identifiable health information' has the 
        meaning given such term in section 1171(6) of the Social 
        Security Act.
            ``(10) Laboratory.--The term `laboratory' has the meaning 
        given such term in section 353(a).
            ``(11) National coordinator.--The term `National 
        Coordinator' means the head of the Office of the National 
        Coordinator for Health Information Technology established under 
        section 3001(a).
            ``(12) Pharmacist.--The term `pharmacist' has the meaning 
        given such term in section 804(2) of the Federal Food, Drug, 
        and Cosmetic Act.
            ``(13) Qualified electronic health record.--The term 
        `qualified electronic health record' means an electronic record 
        of health-related information on an individual that--
                    ``(A) includes patient demographic and clinical 
                health information, such as medical history and problem 
                lists; and
                    ``(B) has the capacity--
                            ``(i) to provide clinical decision support;
                            ``(ii) to support physician order entry;
                            ``(iii) to capture and query information 
                        relevant to health care quality; and
                            ``(iv) to exchange electronic health 
                        information with, and integrate such 
                        information from other sources.
            ``(14) State.--The term `State' means each of the several 
        States, the District of Columbia, Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, and the Northern Mariana 
        Islands.

        ``Subtitle A--Promotion of Health Information Technology

``SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH INFORMATION 
              TECHNOLOGY.

    ``(a) Establishment.--There is established within the Department of 
Health and Human Services an Office of the National Coordinator for 
Health Information Technology (referred to in this section as the 
`Office'). The Office shall be headed by a National Coordinator who 
shall be appointed by the Secretary and shall report directly to the 
Secretary.
    ``(b) Purpose.--The National Coordinator shall perform the duties 
under subsection (c) in a manner consistent with the development of a 
nationwide health information technology infrastructure that allows for 
the electronic use and exchange of information and that--
            ``(1) ensures that each patient's health information is 
        secure and protected, in accordance with applicable law;
            ``(2) improves health care quality, reduces medical errors, 
        reduces health disparities, and advances the delivery of 
        patient-centered medical care;
            ``(3) reduces health care costs resulting from 
        inefficiency, medical errors, inappropriate care, duplicative 
        care, and incomplete information;
            ``(4) provides appropriate information to help guide 
        medical decisions at the time and place of care;
            ``(5) ensures the inclusion of meaningful public input in 
        such development of such infrastructure;
            ``(6) improves the coordination of care and information 
        among hospitals, laboratories, physician offices, and other 
        entities through an effective infrastructure for the secure and 
        authorized exchange of health care information;
            ``(7) improves public health activities and facilitates the 
        early identification and rapid response to public health 
        threats and emergencies, including bioterror events and 
        infectious disease outbreaks;
            ``(8) facilitates health and clinical research and health 
        care quality;
            ``(9) promotes prevention of chronic diseases;
            ``(10) promotes a more effective marketplace, greater 
        competition, greater systems analysis, increased consumer 
        choice, and improved outcomes in health care services; and
            ``(11) improves efforts to reduce health disparities.
    ``(c) Duties of the National Coordinator.--
            ``(1) Standards.--The National Coordinator shall review and 
        determine whether to endorse each standard, implementation 
        specification, and certification criterion for the electronic 
        exchange and use of health information that is recommended by 
        the HIT Standards Committee under section 3003 for purposes of 
        adoption under section 3004. The Coordinator shall make such 
        determination, and report to the Secretary such determination, 
        not later than 45 days after the date the recommendation is 
        received by the Coordinator.
            ``(2) HIT policy coordination.--
                    ``(A) In general.--The National Coordinator shall 
                coordinate health information technology policy and 
                programs of the Department with those of other relevant 
                executive branch agencies with a goal of avoiding 
                duplication of efforts and of helping to ensure that 
                each agency undertakes health information technology 
                activities primarily within the areas of its greatest 
                expertise and technical capability and in a manner 
                towards a coordinated national goal.
                    ``(B) HIT policy and standards committees.--The 
                National Coordinator shall be a leading member in the 
                establishment and operations of the HIT Policy 
                Committee and the HIT Standards Committee and shall 
                serve as a liaison among those two Committees and the 
                Federal Government.
            ``(3) Strategic plan.--
                    ``(A) In general.--The National Coordinator shall, 
                in consultation with other appropriate Federal agencies 
                (including the National Institute of Standards and 
                Technology), update the Federal Health IT Strategic 
                Plan (developed as of June 3, 2008) to include specific 
                objectives, milestones, and metrics with respect to the 
                following:
                            ``(i) The electronic exchange and use of 
                        health information and the enterprise 
                        integration of such information.
                            ``(ii) The utilization of an electronic 
                        health record for each person in the United 
                        States by 2014.
                            ``(iii) The incorporation of privacy and 
                        security protections for the electronic 
                        exchange of an individual's individually 
                        identifiable health information.
                            ``(iv) Ensuring security methods to ensure 
                        appropriate authorization and electronic 
                        authentication of health information and 
                        specifying technologies or methodologies for 
                        rendering health information unusable, 
                        unreadable, or indecipherable.
                            ``(v) Specifying a framework for 
                        coordination and flow of recommendations and 
                        policies under this subtitle among the 
                        Secretary, the National Coordinator, the HIT 
                        Policy Committee, the HIT Standards Committee, 
                        and other health information exchanges and 
                        other relevant entities.
                            ``(vi) Methods to foster the public 
                        understanding of health information technology.
                            ``(vii) Strategies to enhance the use of 
                        health information technology in improving the 
                        quality of health care, reducing medical 
                        errors, reducing health disparities, improving 
                        public health, and improving the continuity of 
                        care among health care settings.
                    ``(B) Collaboration.--The strategic plan shall be 
                updated through collaboration of public and private 
                entities.
                    ``(C) Measurable outcome goals.--The strategic plan 
                update shall include measurable outcome goals.
                    ``(D) Publication.--The National Coordinator shall 
                republish the strategic plan, including all updates.
            ``(4) Website.--The National Coordinator shall maintain and 
        frequently update an Internet website on which there is posted 
        information on the work, schedules, reports, recommendations, 
        and other information to ensure transparency in promotion of a 
        nationwide health information technology infrastructure.
            ``(5) Certification.--
                    ``(A) In general.--The National Coordinator, in 
                consultation with the Director of the National 
                Institute of Standards and Technology, shall develop a 
                program (either directly or by contract) for the 
                voluntary certification of health information 
                technology as being in compliance with applicable 
                certification criteria adopted under this subtitle. 
                Such program shall include testing of the technology in 
                accordance with section 4201(b) of the HITECH Act.
                    ``(B) Certification criteria described.--In this 
                title, the term `certification criteria' means, with 
                respect to standards and implementation specifications 
                for health information technology, criteria to 
                establish that the technology meets such standards and 
                implementation specifications.
            ``(6) Reports and publications.--
                    ``(A) Report on additional funding or authority 
                needed.--Not later than 12 months after the date of the 
                enactment of this title, the National Coordinator shall 
                submit to the appropriate committees of jurisdiction of 
                the House of Representatives and the Senate a report on 
                any additional funding or authority the Coordinator or 
                the HIT Policy Committee or HIT Standards Committee 
                requires to evaluate and develop standards, 
                implementation specifications, and certification 
                criteria, or to achieve full participation of 
                stakeholders in the adoption of a nationwide health 
                information technology infrastructure that allows for 
                the electronic use and exchange of health information.
                    ``(B) Implementation report.--The National 
                Coordinator shall prepare a report that identifies 
                lessons learned from major public and private health 
                care systems in their implementation of health 
                information technology, including information on 
                whether the technologies and practices developed by 
                such systems may be applicable to and usable in whole 
                or in part by other health care providers.
                    ``(C) Assessment of impact of hit on communities 
                with health disparities and uninsured, underinsured, 
                and medically underserved areas.--The National 
                Coordinator shall assess and publish the impact of 
                health information technology in communities with 
                health disparities and in areas with a high proportion 
                of individuals who are uninsured, underinsured, and 
                medically underserved individuals (including urban and 
                rural areas) and identify practices to increase the 
                adoption of such technology by health care providers in 
                such communities.
                    ``(D) Evaluation of benefits and costs of the 
                electronic use and exchange of health information.--The 
                National Coordinator shall evaluate and publish 
                evidence on the benefits and costs of the electronic 
                use and exchange of health information and assess to 
                whom these benefits and costs accrue.
                    ``(E) Resource requirements.--The National 
                Coordinator shall estimate and publish resources 
                required annually to reach the goal of utilization of 
                an electronic health record for each person in the 
                United States by 2014, including the required level of 
                Federal funding, expectations for regional, State, and 
                private investment, and the expected contributions by 
                volunteers to activities for the utilization of such 
                records.
            ``(7) Assistance.--The National Coordinator may provide 
        financial assistance to consumer advocacy groups and not-for-
        profit entities that work in the public interest for purposes 
        of defraying the cost to such groups and entities to 
        participate under, whether in whole or in part, the National 
        Technology Transfer Act of 1995 (15 U.S.C. 272 note).
            ``(8) Governance for nationwide health information 
        network.--The National Coordinator shall establish a governance 
        mechanism for the nationwide health information network.
    ``(d) Detail of Federal Employees.--
            ``(1) In general.--Upon the request of the National 
        Coordinator, the head of any Federal agency is authorized to 
        detail, with or without reimbursement from the Office, any of 
        the personnel of such agency to the Office to assist it in 
        carrying out its duties under this section.
            ``(2) Effect of detail.--Any detail of personnel under 
        paragraph (1) shall--
                    ``(A) not interrupt or otherwise affect the civil 
                service status or privileges of the Federal employee; 
                and
                    ``(B) be in addition to any other staff of the 
                Department employed by the National Coordinator.
            ``(3) Acceptance of detailees.--Notwithstanding any other 
        provision of law, the Office may accept detailed personnel from 
        other Federal agencies without regard to whether the agency 
        described under paragraph (1) is reimbursed.
    ``(e) Chief Privacy Officer of the Office of the National 
Coordinator.--Not later than 12 months after the date of the enactment 
of this title, the Secretary shall appoint a Chief Privacy Officer of 
the Office of the National Coordinator, whose duty it shall be to 
advise the National Coordinator on privacy, security, and data 
stewardship of electronic health information and to coordinate with 
other Federal agencies (and similar privacy officers in such agencies), 
with State and regional efforts, and with foreign countries with regard 
to the privacy, security, and data stewardship of electronic 
individually identifiable health information.

``SEC. 3002. HIT POLICY COMMITTEE.

    ``(a) Establishment.--There is established a HIT Policy Committee 
to make policy recommendations to the National Coordinator relating to 
the implementation of a nationwide health information technology 
infrastructure, including implementation of the strategic plan 
described in section 3001(c)(3).
    ``(b) Duties.--
            ``(1) Recommendations on health information technology 
        infrastructure.--The HIT Policy Committee shall recommend a 
        policy framework for the development and adoption of a 
        nationwide health information technology infrastructure that 
        permits the electronic exchange and use of health information 
        as is consistent with the strategic plan under section 
        3001(c)(3) and that includes the recommendations under 
        paragraph (2). The Committee shall update such recommendations 
        and make new recommendations as appropriate.
            ``(2) Specific areas of standard development.--
                    ``(A) In general.--The HIT Policy Committee shall 
                recommend the areas in which standards, implementation 
                specifications, and certification criteria are needed 
                for the electronic exchange and use of health 
                information for purposes of adoption under section 3004 
                and shall recommend an order of priority for the 
                development, harmonization, and recognition of such 
                standards, specifications, and certification criteria 
                among the areas so recommended. Such standards and 
                implementation specifications shall include named 
                standards, architectures, and software schemes for the 
                authentication and security of individually 
                identifiable health information and other information 
                as needed to ensure the reproducible development of 
                common solutions across disparate entities.
                    ``(B) Areas required for consideration.--For 
                purposes of subparagraph (A), the HIT Policy Committee 
                shall make recommendations for at least the following 
                areas:
                            ``(i) Technologies that protect the privacy 
                        of health information and promote security in a 
                        qualified electronic health record, including 
                        for the segmentation and protection from 
                        disclosure of specific and sensitive 
                        individually identifiable health information 
                        with the goal of minimizing the reluctance of 
                        patients to seek care (or disclose information 
                        about a condition) because of privacy concerns, 
                        in accordance with applicable law, and for the 
                        use and disclosure of limited data sets of such 
                        information.
                            ``(ii) A nationwide health information 
                        technology infrastructure that allows for the 
                        electronic use and accurate exchange of health 
                        information.
                            ``(iii) The utilization of a certified 
                        electronic health record for each person in the 
                        United States by 2014.
                            ``(iv) Technologies that as a part of a 
                        qualified electronic health record allow for an 
                        accounting of disclosures made by a covered 
                        entity (as defined for purposes of regulations 
                        promulgated under section 264(c) of the Health 
                        Insurance Portability and Accountability Act of 
                        1996) for purposes of treatment, payment, and 
                        health care operations (as such terms are 
                        defined for purposes of such regulations).
                            ``(v) The use of certified electronic 
                        health records to improve the quality of health 
                        care, such as by promoting the coordination of 
                        health care and improving continuity of health 
                        care among health care providers, by reducing 
                        medical errors, by improving population health, 
                        by reducing health disparities, and by 
                        advancing research and education.
                            ``(vi) Technologies that allow individually 
                        identifiable health information to be rendered 
                        unusable, unreadable, or indecipherable to 
                        unauthorized individuals when such information 
                        is transmitted in the nationwide health 
                        information network or physically transported 
                        outside of the secured, physical perimeter of a 
                        health care provider, health plan, or health 
                        care clearinghouse.
                    ``(C) Other areas for consideration.--In making 
                recommendations under subparagraph (A), the HIT Policy 
                Committee may consider the following additional areas:
                            ``(i) The appropriate uses of a nationwide 
                        health information infrastructure, including 
                        for purposes of--
                                    ``(I) the collection of quality 
                                data and public reporting;
                                    ``(II) biosurveillance and public 
                                health;
                                    ``(III) medical and clinical 
                                research; and
                                    ``(IV) drug safety.
                            ``(ii) Self-service technologies that 
                        facilitate the use and exchange of patient 
                        information and reduce wait times.
                            ``(iii) Telemedicine technologies, in order 
                        to reduce travel requirements for patients in 
                        remote areas.
                            ``(iv) Technologies that facilitate home 
                        health care and the monitoring of patients 
                        recuperating at home.
                            ``(v) Technologies that help reduce medical 
                        errors.
                            ``(vi) Technologies that facilitate the 
                        continuity of care among health settings.
                            ``(vii) Technologies that meet the needs of 
                        diverse populations.
                            ``(viii) Any other technology that the HIT 
                        Policy Committee finds to be among the 
                        technologies with the greatest potential to 
                        improve the quality and efficiency of health 
                        care.
            ``(3) Forum.--The HIT Policy Committee shall serve as a 
        forum for broad stakeholder input with specific expertise in 
        policies relating to the matters described in paragraphs (1) 
        and (2).
    ``(c) Membership and Operations.--
            ``(1) In general.--The National Coordinator shall provide 
        leadership in the establishment and operations of the HIT 
        Policy Committee.
            ``(2) Membership.--The membership of the HIT Policy 
        Committee shall at least reflect providers, ancillary 
        healthcare workers, consumers, purchasers, health plans, 
        technology vendors, researchers, relevant Federal agencies, and 
        individuals with technical expertise on health care quality, 
        privacy and security, and on the electronic exchange and use of 
        health information.
            ``(3) Consideration.--The National Coordinator shall ensure 
        that the relevant recommendations and comments from the 
        National Committee on Vital and Health Statistics are 
        considered in the development of policies.
    ``(d) Application of FACA.--The Federal Advisory Committee Act (5 
U.S.C. App.), other than section 14 of such Act, shall apply to the HIT 
Policy Committee.
    ``(e) Publication.--The Secretary shall provide for publication in 
the Federal Register and the posting on the Internet website of the 
Office of the National Coordinator for Health Information Technology of 
all policy recommendations made by the HIT Policy Committee under this 
section.

``SEC. 3003. HIT STANDARDS COMMITTEE.

    ``(a) Establishment.--There is established a committee to be known 
as the HIT Standards Committee to recommend to the National Coordinator 
standards, implementation specifications, and certification criteria 
for the electronic exchange and use of health information for purposes 
of adoption under section 3004, consistent with the implementation of 
the strategic plan described in section 3001(c)(3) and beginning with 
the areas listed in section 3002(b)(2)(B) in accordance with policies 
developed by the HIT Policy Committee.
    ``(b) Duties.--
            ``(1) Standards development.--
                    ``(A) In general.--The HIT Standards Committee 
                shall recommend to the National Coordinator standards, 
                implementation specifications, and certification 
                criteria described in subsection (a) that have been 
                developed, harmonized, or recognized by the HIT 
                Standards Committee. The HIT Standards Committee shall 
                update such recommendations and make new 
                recommendations as appropriate, including in response 
                to a notification sent under section 3004(a)(2)(B). 
                Such recommendations shall be consistent with the 
                latest recommendations made by the HIT Policy 
                Committee.
                    ``(B) Pilot testing of standards and implementation 
                specifications.--In the development, harmonization, or 
                recognition of standards and implementation 
                specifications, the HIT Standards Committee shall, as 
                appropriate, provide for the testing of such standards 
                and specifications by the National Institute for 
                Standards and Technology under section 4201(a) of the 
                HITECH Act.
                    ``(C) Consistency.--The standards, implementation 
                specifications, and certification criteria recommended 
                under this subsection shall be consistent with the 
                standards for information transactions and data 
                elements adopted pursuant to section 1173 of the Social 
                Security Act.
            ``(2) Forum.--The HIT Standards Committee shall serve as a 
        forum for the participation of a broad range of stakeholders to 
        provide input on the development, harmonization, and 
        recognition of standards, implementation specifications, and 
        certification criteria necessary for the development and 
        adoption of a nationwide health information technology 
        infrastructure that allows for the electronic use and exchange 
        of health information.
            ``(3) Schedule.--Not later than 90 days after the date of 
        the enactment of this title, the HIT Standards Committee shall 
        develop a schedule for the assessment of policy recommendations 
        developed by the HIT Policy Committee under section 3002. The 
        HIT Standards Committee shall update such schedule annually. 
        The Secretary shall publish such schedule in the Federal 
        Register.
            ``(4) Public input.--The HIT Standards Committee shall 
        conduct open public meetings and develop a process to allow for 
        public comment on the schedule described in paragraph (3) and 
        recommendations described in this subsection. Under such 
        process comments shall be submitted in a timely manner after 
        the date of publication of a recommendation under this 
        subsection.
    ``(c) Membership and Operations.--
            ``(1) In general.--The National Coordinator shall provide 
        leadership in the establishment and operations of the HIT 
        Standards Committee.
            ``(2) Membership.--The membership of the HIT Standards 
        Committee shall at least reflect providers, ancillary 
        healthcare workers, consumers, purchasers, health plans, 
        technology vendors, researchers, relevant Federal agencies, and 
        individuals with technical expertise on health care quality, 
        privacy and security, and on the electronic exchange and use of 
        health information.
            ``(3) Consideration.--The National Coordinator shall ensure 
        that the relevant recommendations and comments from the 
        National Committee on Vital and Health Statistics are 
        considered in the development of standards.
            ``(4) Assistance.--For the purposes of carrying out this 
        section, the Secretary may provide or ensure that financial 
        assistance is provided by the HIT Standards Committee to defray 
        in whole or in part any membership fees or dues charged by such 
        Committee to those consumer advocacy groups and not for profit 
        entities that work in the public interest as a part of their 
        mission.
    ``(d) Application of FACA.--The Federal Advisory Committee Act (5 
U.S.C. App.), other than section 14, shall apply to the HIT Standards 
Committee.
    ``(e) Publication.--The Secretary shall provide for publication in 
the Federal Register and the posting on the Internet website of the 
Office of the National Coordinator for Health Information Technology of 
all recommendations made by the HIT Standards Committee under this 
section.

``SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED RECOMMENDATIONS; ADOPTION 
              OF INITIAL SET OF STANDARDS, IMPLEMENTATION 
              SPECIFICATIONS, AND CERTIFICATION CRITERIA.

    ``(a) Process for Adoption of Endorsed Recommendations.--
            ``(1) Review of endorsed standards, implementation 
        specifications, and certification criteria.--Not later than 90 
        days after the date of receipt of standards, implementation 
        specifications, or certification criteria endorsed under 
        section 3001(c), the Secretary, in consultation with 
        representatives of other relevant Federal agencies, shall 
        jointly review such standards, implementation specifications, 
        or certification criteria and shall determine whether or not to 
        propose adoption of such standards, implementation 
        specifications, or certification criteria.
            ``(2) Determination to adopt standards, implementation 
        specifications, and certification criteria.--If the Secretary 
        determines--
                    ``(A) to propose adoption of any grouping of such 
                standards, implementation specifications, or 
                certification criteria, the Secretary shall, by 
                regulation, determine whether or not to adopt such 
                grouping of standards, implementation specifications, 
                or certification criteria; or
                    ``(B) not to propose adoption of any grouping of 
                standards, implementation specifications, or 
                certification criteria, the Secretary shall notify the 
                National Coordinator and the HIT Standards Committee in 
                writing of such determination and the reasons for not 
                proposing the adoption of such recommendation.
            ``(3) Publication.--The Secretary shall provide for 
        publication in the Federal Register of all determinations made 
        by the Secretary under paragraph (1).
    ``(b) Adoption of Initial Set of Standards, Implementation 
Specifications, and Certification Criteria.--
            ``(1) In general.--Not later than December 31, 2009, the 
        Secretary shall, through the rulemaking process described in 
        section 3004(a), adopt an initial set of standards, 
        implementation specifications, and certification criteria for 
        the areas required for consideration under section 
        3002(b)(2)(B).
            ``(2) Application of current standards, implementation 
        specifications, and certification criteria.--The standards, 
        implementation specifications, and certification criteria 
        adopted before the date of the enactment of this title through 
        the process existing through the Office of the National 
        Coordinator for Health Information Technology may be applied 
        towards meeting the requirement of paragraph (1).

``SEC. 3005. APPLICATION AND USE OF ADOPTED STANDARDS AND 
              IMPLEMENTATION SPECIFICATIONS BY FEDERAL AGENCIES.

    ``For requirements relating to the application and use by Federal 
agencies of the standards and implementation specifications adopted 
under section 3004, see section 4111 of the HITECH Act.

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

    ``(a) In General.--Except as provided under section 4112 of the 
HITECH Act, any standard or implementation specification adopted under 
section 3004 shall be voluntary with respect to private entities.
    ``(b) Rule of Construction.--Nothing in this subtitle shall be 
construed to require that a private entity that enters into a contract 
with the Federal Government apply or use the standards and 
implementation specifications adopted under section 3004 with respect 
to activities not related to the contract.

``SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY.

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

``SEC. 3008. TRANSITIONS.

    ``(a) ONCHIT.--To the extent consistent with section 3001, all 
functions, personnel, assets, liabilities, and administrative actions 
applicable to the National Coordinator for Health Information 
Technology appointed under Executive Order 13335 or the Office of such 
National Coordinator on the date before the date of the enactment of 
this title shall be transferred to the National Coordinator appointed 
under section 3001(a) and the Office of such National Coordinator as of 
the date of the enactment of this title.
    ``(b) AHIC.--
            ``(1) To the extent consistent with sections 3002 and 3003, 
        all functions, personnel, assets, and liabilities applicable to 
        the AHIC Successor, Inc. doing business as the National eHealth 
        Collaborative as of the day before the date of the enactment of 
        this title shall be transferred to the HIT Policy Committee or 
        the HIT Standards Committee, established under section 3002(a) 
        or 3003(a), as appropriate, as of the date of the enactment of 
        this title.
            ``(2) In carrying out section 3003(b)(1)(A), until 
        recommendations are made by the HIT Policy Committee, 
        recommendations of the HIT Standards Committee shall be 
        consistent with the most recent recommendations made by such 
        AHIC Successor, Inc.
    ``(c) Rules of Construction.--
            ``(1) ONCHIT.--Nothing in section 3001 or subsection (a) 
        shall be construed as requiring the creation of a new entity to 
        the extent that the Office of the National Coordinator for 
        Health Information Technology established pursuant to Executive 
        Order 13335 is consistent with the provisions of section 3001.
            ``(2) AHIC.--Nothing in sections 3002 or 3003 or subsection 
        (b) shall be construed as prohibiting the AHIC Successor, Inc. 
        doing business as the National eHealth Collaborative from 
        modifying its charter, duties, membership, and any other 
        structure or function required to be consistent with section 
        3002 and 3003 in a manner that would permit the Secretary to 
        choose to recognize such AHIC Successor, Inc. as the HIT Policy 
        Committee or the HIT Standards Committee.

``SEC. 3009. RELATION TO HIPAA PRIVACY AND SECURITY LAW.

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

``SEC. 3010. AUTHORIZATION FOR APPROPRIATIONS.

    ``There is authorized to be appropriated to the Office of the 
National Coordinator for Health Information Technology to carry out 
this subtitle $250,000,000 for fiscal year 2009.''.

SEC. 4102. TECHNICAL AMENDMENT.

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

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

SEC. 4111. COORDINATION OF FEDERAL ACTIVITIES WITH ADOPTED STANDARDS 
              AND IMPLEMENTATION SPECIFICATIONS.

    (a) Spending on Health Information Technology Systems.--As each 
agency (as defined in the Executive Order issued on August 22, 2006, 
relating to promoting quality and efficient health care in Federal 
government administered or sponsored health care programs) implements, 
acquires, or upgrades health information technology systems used for 
the direct exchange of individually identifiable health information 
between agencies and with non-Federal entities, it shall utilize, where 
available, health information technology systems and products that meet 
standards and implementation specifications adopted under section 3004 
of the Public Health Service Act, as added by section 4101.
    (b) Federal Information Collection Activities.--With respect to a 
standard or implementation specification adopted under section 3004 of 
the Public Health Service Act, as added by section 4101, the President 
shall take measures to ensure that Federal activities involving the 
broad collection and submission of health information are consistent 
with such standard or implementation specification, respectively, 
within three years after the date of such adoption.
    (c) Application of Definitions.--The definitions contained in 
section 3000 of the Public Health Service Act, as added by section 
4101, shall apply for purposes of this part.

SEC. 4112. APPLICATION TO PRIVATE ENTITIES.

    Each agency (as defined in such Executive Order issued on August 
22, 2006, relating to promoting quality and efficient health care in 
Federal government administered or sponsored health care programs) 
shall require in contracts or agreements with health care providers, 
health plans, or health insurance issuers that as each provider, plan, 
or issuer implements, acquires, or upgrades health information 
technology systems, it shall utilize, where available, health 
information technology systems and products that meet standards and 
implementation specifications adopted under section 3004 of the Public 
Health Service Act, as added by section 4101.

SEC. 4113. STUDY AND REPORTS.

    (a) Report on Adoption of Nationwide System.--Not later than 2 
years after the date of the enactment of this Act and annually 
thereafter, the Secretary of Health and Human Services shall submit to 
the appropriate committees of jurisdiction of the House of 
Representatives and the Senate a report that--
            (1) describes the specific actions that have been taken by 
        the Federal Government and private entities to facilitate the 
        adoption of a nationwide system for the electronic use and 
        exchange of health information;
            (2) describes barriers to the adoption of such a nationwide 
        system; and
            (3) contains recommendations to achieve full implementation 
        of such a nationwide system.
    (b) Reimbursement Incentive Study and Report.--
            (1) Study.--The Secretary of Health and Human Services 
        shall carry out, or contract with a private entity to carry 
        out, a study that examines methods to create efficient 
        reimbursement incentives for improving health care quality in 
        Federally qualified health centers, rural health clinics, and 
        free clinics.
            (2) Report.--Not later than 2 years after the date of the 
        enactment of this Act, the Secretary of Health and Human 
        Services shall submit to the appropriate committees of 
        jurisdiction of the House of Representatives and the Senate a 
        report on the study carried out under paragraph (1).
    (c) Aging Services Technology Study and Report.--
            (1) In general.--The Secretary of Health and Human Services 
        shall carry out, or contract with a private entity to carry 
        out, a study of matters relating to the potential use of new 
        aging services technology to assist seniors, individuals with 
        disabilities, and their caregivers throughout the aging 
        process.
            (2) Matters to be studied.--The study under paragraph (1) 
        shall include--
                    (A) an evaluation of--
                            (i) methods for identifying current, 
                        emerging, and future health technology that can 
                        be used to meet the needs of seniors and 
                        individuals with disabilities and their 
                        caregivers across all aging services settings, 
                        as specified by the Secretary;
                            (ii) methods for fostering scientific 
                        innovation with respect to aging services 
                        technology within the business and academic 
                        communities; and
                            (iii) developments in aging services 
                        technology in other countries that may be 
                        applied in the United States; and
                    (B) identification of--
                            (i) barriers to innovation in aging 
                        services technology and devising strategies for 
                        removing such barriers; and
                            (ii) barriers to the adoption of aging 
                        services technology by health care providers 
                        and consumers and devising strategies to 
                        removing such barriers.
            (3) Report.--Not later than 24 months after the date of the 
        enactment of this Act, the Secretary shall submit to the 
        appropriate committees of jurisdiction of the House of 
        Representatives and of the Senate a report on the study carried 
        out under paragraph (1).
            (4) Definitions.--For purposes of this subsection:
                    (A) Aging services technology.--The term ``aging 
                services technology'' means health technology that 
                meets the health care needs of seniors, individuals 
                with disabilities, and the caregivers of such seniors 
                and individuals.
                    (B) Senior.--The term ``senior'' has such meaning 
                as specified by the Secretary.

          Subtitle B--Testing of Health Information Technology

SEC. 4201. NATIONAL INSTITUTE FOR STANDARDS AND TECHNOLOGY TESTING.

    (a) Pilot Testing of Standards and Implementation Specifications.--
In coordination with the HIT Standards Committee established under 
section 3003 of the Public Health Service Act, as added by section 
4101, with respect to the development of standards and implementation 
specifications under such section, the Director of the National 
Institute for Standards and Technology shall test such standards and 
implementation specifications, as appropriate, in order to assure the 
efficient implementation and use of such standards and implementation 
specifications.
    (b) Voluntary Testing Program.--In coordination with the HIT 
Standards Committee established under section 3003 of the Public Health 
Service Act, as added by section 4101, with respect to the development 
of standards and implementation specifications under such section, the 
Director of the National Institute of Standards and Technology shall 
support the establishment of a conformance testing infrastructure, 
including the development of technical test beds. The development of 
this conformance testing infrastructure may include a program to 
accredit independent, non-Federal laboratories to perform testing.

SEC. 4202. RESEARCH AND DEVELOPMENT PROGRAMS.

    (a) Health Care Information Enterprise Integration Research 
Centers.--
            (1) In general.--The Director of the National Institute of 
        Standards and Technology, in consultation with the Director of 
        the National Science Foundation and other appropriate Federal 
        agencies, shall establish a program of assistance to 
        institutions of higher education (or consortia thereof which 
        may include nonprofit entities and Federal Government 
        laboratories) to establish multidisciplinary Centers for Health 
        Care Information Enterprise Integration.
            (2) Review; competition.--Grants shall be awarded under 
        this subsection on a merit-reviewed, competitive basis.
            (3) Purpose.--The purposes of the Centers described in 
        paragraph (1) shall be--
                    (A) to generate innovative approaches to health 
                care information enterprise integration by conducting 
                cutting-edge, multidisciplinary research on the systems 
                challenges to health care delivery; and
                    (B) the development and use of health information 
                technologies and other complementary fields.
            (4) Research areas.--Research areas may include--
                    (A) interfaces between human information and 
                communications technology systems;
                    (B) voice-recognition systems;
                    (C) software that improves interoperability and 
                connectivity among health information systems;
                    (D) software dependability in systems critical to 
                health care delivery;
                    (E) measurement of the impact of information 
                technologies on the quality and productivity of health 
                care;
                    (F) health information enterprise management;
                    (G) health information technology security and 
                integrity; and
                    (H) relevant health information technology to 
                reduce medical errors.
            (5) Applications.--An institution of higher education (or a 
        consortium thereof) seeking funding under this subsection shall 
        submit an application to the Director of the National Institute 
        of Standards and Technology at such time, in such manner, and 
        containing such information as the Director may require. The 
        application shall include, at a minimum, a description of--
                    (A) the research projects that will be undertaken 
                by the Center established pursuant to assistance under 
                paragraph (1) and the respective contributions of the 
                participating entities;
                    (B) how the Center will promote active 
                collaboration among scientists and engineers from 
                different disciplines, such as information technology, 
                biologic sciences, management, social sciences, and 
                other appropriate disciplines;
                    (C) technology transfer activities to demonstrate 
                and diffuse the research results, technologies, and 
                knowledge; and
                    (D) how the Center will contribute to the education 
                and training of researchers and other professionals in 
                fields relevant to health information enterprise 
                integration.
    (b) National Information Technology Research and Development 
Program.--The National High-Performance Computing Program established 
by section 101 of the High-Performance Computing Act of 1991 (15 U.S.C. 
5511) shall coordinate Federal research and development programs 
related to the development and deployment of health information 
technology, including activities related to--
            (1) computer infrastructure;
            (2) data security;
            (3) development of large-scale, distributed, reliable 
        computing systems;
            (4) wired, wireless, and hybrid high-speed networking;
            (5) development of software and software-intensive systems;
            (6) human-computer interaction and information management 
        technologies; and
            (7) the social and economic implications of information 
        technology.

  Subtitle C--Incentives for the Use of Health Information Technology

                    PART I--GRANTS AND LOANS FUNDING

SEC. 4301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS.

    Title XXX of the Public Health Service Act, as added by section 
4101, is amended by adding at the end the following new subtitle:

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

``SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE HEALTH INFORMATION 
              TECHNOLOGY INFRASTRUCTURE.

    ``(a) In General.--The Secretary shall, using amounts appropriated 
under section 3018, invest in the infrastructure necessary to allow for 
and promote the electronic exchange and use of health information for 
each individual in the United States consistent with the goals outlined 
in the strategic plan developed by the National Coordinator (and as 
available) under section 3001. To the greatest extent practicable, the 
Secretary shall ensure that any funds so appropriated shall be used for 
the acquisition of health information technology that meets standards 
and certification criteria adopted before the date of the enactment of 
this title until such date as the standards are adopted under section 
3004. The Secretary shall invest funds through the different agencies 
with expertise in such goals, such as the Office of the National 
Coordinator for Health Information Technology, the Health Resources and 
Services Administration, the Agency for Healthcare Research and 
Quality, the Centers of Medicare & Medicaid Services, the Centers for 
Disease Control and Prevention, and the Indian Health Service to 
support the following:
            ``(1) Health information technology architecture that will 
        support the nationwide electronic exchange and use of health 
        information in a secure, private, and accurate manner, 
        including connecting health information exchanges, and which 
        may include updating and implementing the infrastructure 
        necessary within different agencies of the Department of Health 
        and Human Services to support the electronic use and exchange 
        of health information.
            ``(2) Development and adoption of appropriate certified 
        electronic health records for categories of providers, as 
        defined in section 3000, not eligible for support under title 
        XVIII or XIX of the Social Security Act for the adoption of 
        such records.
            ``(3) Training on and dissemination of information on best 
        practices to integrate health information technology, including 
        electronic health records, into a provider's delivery of care, 
        consistent with best practices learned from the Health 
        Information Technology Research Center developed under section 
        3012(b), including community health centers receiving 
        assistance under section 330, covered entities under section 
        340B, and providers participating in one or more of the 
        programs under titles XVIII, XIX, and XXI of the Social 
        Security Act (relating to Medicare, Medicaid, and the State 
        Children's Health Insurance Program).
            ``(4) Infrastructure and tools for the promotion of 
        telemedicine, including coordination among Federal agencies in 
        the promotion of telemedicine.
            ``(5) Promotion of the interoperability of clinical data 
        repositories or registries.
            ``(6) Promotion of technologies and best practices that 
        enhance the protection of health information by all holders of 
        individually identifiable health information.
            ``(7) Improvement and expansion of the use of health 
        information technology by public health departments.
            ``(8) Provision of $300 million to support regional or sub-
        national efforts towards health information exchange.
    ``(b) Coordination.--The Secretary shall ensure funds under this 
section are used in a coordinated manner with other health information 
promotion activities.
    ``(c) Additional Use of Funds.--In addition to using funds as 
provided in subsection (a), the Secretary may use amounts appropriated 
under section 3018 to carry out health information technology 
activities that are provided for under laws in effect on the date of 
the enactment of this title.

``SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLEMENTATION ASSISTANCE.

    ``(a) Health Information Technology Extension Program.--To assist 
health care providers to adopt, implement, and effectively use 
certified EHR technology that allows for the electronic exchange and 
use of health information, the Secretary, acting through the Office of 
the National Coordinator, shall establish a health information 
technology extension program to provide health information technology 
assistance services to be carried out through the Department of Health 
and Human Services. The National Coordinator shall consult with other 
Federal agencies with demonstrated experience and expertise in 
information technology services, such as the National Institute of 
Standards and Technology, in developing and implementing this program.
    ``(b) Health Information Technology Research Center.--
            ``(1) In general.--The Secretary shall create a Health 
        Information Technology Research Center (in this section 
        referred to as the `Center') to provide technical assistance 
        and develop or recognize best practices to support and 
        accelerate efforts to adopt, implement, and effectively utilize 
        health information technology that allows for the electronic 
        exchange and use of information in compliance with standards, 
        implementation specifications, and certification criteria 
        adopted under section 3004.
            ``(2) Input.--The Center shall incorporate input from--
                    ``(A) other Federal agencies with demonstrated 
                experience and expertise in information technology 
                services such as the National Institute of Standards 
                and Technology;
                    ``(B) users of health information technology, such 
                as providers and their support and clerical staff and 
                others involved in the care and care coordination of 
                patients, from the health care and health information 
                technology industry; and
                    ``(C) others as appropriate.
            ``(3) Purposes.--The purposes of the Center are to--
                    ``(A) provide a forum for the exchange of knowledge 
                and experience;
                    ``(B) accelerate the transfer of lessons learned 
                from existing public and private sector initiatives, 
                including those currently receiving Federal financial 
                support;
                    ``(C) assemble, analyze, and widely disseminate 
                evidence and experience related to the adoption, 
                implementation, and effective use of health information 
                technology that allows for the electronic exchange and 
                use of information including through the regional 
                centers described in subsection (c);
                    ``(D) provide technical assistance for the 
                establishment and evaluation of regional and local 
                health information networks to facilitate the 
                electronic exchange of information across health care 
                settings and improve the quality of health care;
                    ``(E) provide technical assistance for the 
                development and dissemination of solutions to barriers 
                to the exchange of electronic health information; and
                    ``(F) learn about effective strategies to adopt and 
                utilize health information technology in medically 
                underserved communities.
    ``(c) Health Information Technology Regional Extension Centers.--
            ``(1) In general.--The Secretary shall provide assistance 
        for the creation and support of regional centers (in this 
        subsection referred to as `regional centers') to provide 
        technical assistance and disseminate best practices and other 
        information learned from the Center to support and accelerate 
        efforts to adopt, implement, and effectively utilize health 
        information technology that allows for the electronic exchange 
        and use of information in compliance with standards, 
        implementation specifications, and certification criteria 
        adopted under section 3004. Activities conducted under this 
        subsection shall be consistent with the strategic plan 
        developed by the National Coordinator, (and, as available) 
        under section 3001.
            ``(2) Affiliation.--Regional centers shall be affiliated 
        with any United States-based nonprofit institution or 
        organization, or group thereof, that applies and is awarded 
        financial assistance under this section. Individual awards 
        shall be decided on the basis of merit.
            ``(3) Objective.--The objective of the regional centers is 
        to enhance and promote the adoption of health information 
        technology through--
                    ``(A) assistance with the implementation, effective 
                use, upgrading, and ongoing maintenance of health 
                information technology, including electronic health 
                records, to healthcare providers nationwide;
                    ``(B) broad participation of individuals from 
                industry, universities, and State governments;
                    ``(C) active dissemination of best practices and 
                research on the implementation, effective use, 
                upgrading, and ongoing maintenance of health 
                information technology, including electronic health 
                records, to health care providers in order to improve 
                the quality of healthcare and protect the privacy and 
                security of health information;
                    ``(D) participation, to the extent practicable, in 
                health information exchanges;
                    ``(E) utilization, when appropriate, of the 
                expertise and capability that exists in Federal 
                agencies other than the Department; and
                    ``(F) integration of health information technology, 
                including electronic health records, into the initial 
                and ongoing training of health professionals and others 
                in the healthcare industry that would be instrumental 
                to improving the quality of healthcare through the 
                smooth and accurate electronic use and exchange of 
                health information.
            ``(4) Regional assistance.--Each regional center shall aim 
        to provide assistance and education to all providers in a 
        region, but shall prioritize any direct assistance first to the 
        following:
                    ``(A) Public or not-for-profit hospitals or 
                critical access hospitals.
                    ``(B) Federally qualified health centers (as 
                defined in section 1861(aa)(4) of the Social Security 
                Act).
                    ``(C) Entities that are located in rural and other 
                areas that serve uninsured, underinsured, and medically 
                underserved individuals (regardless of whether such 
                area is urban or rural).
                    ``(D) Individual or small group practices (or a 
                consortium thereof) that are primarily focused on 
                primary care.
            ``(5) Financial support.--The Secretary may provide 
        financial support to any regional center created under this 
        subsection for a period not to exceed four years. The Secretary 
        may not provide more than 50 percent of the capital and annual 
        operating and maintenance funds required to create and maintain 
        such a center, except in an instance of national economic 
        conditions which would render this cost-share requirement 
        detrimental to the program and upon notification to Congress as 
        to the justification to waive the cost-share requirement.
            ``(6) Notice of program description and availability of 
        funds.--The Secretary shall publish in the Federal Register, 
        not later than 90 days after the date of the enactment of this 
        title, a draft description of the program for establishing 
        regional centers under this subsection. Such description shall 
        include the following:
                    ``(A) A detailed explanation of the program and the 
                programs goals.
                    ``(B) Procedures to be followed by the applicants.
                    ``(C) Criteria for determining qualified 
                applicants.
                    ``(D) Maximum support levels expected to be 
                available to centers under the program.
            ``(7) Application review.--The Secretary shall subject each 
        application under this subsection to merit review. In making a 
        decision whether to approve such application and provide 
        financial support, the Secretary shall consider at a minimum 
        the merits of the application, including those portions of the 
        application regarding--
                    ``(A) the ability of the applicant to provide 
                assistance under this subsection and utilization of 
                health information technology appropriate to the needs 
                of particular categories of health care providers;
                    ``(B) the types of service to be provided to health 
                care providers;
                    ``(C) geographical diversity and extent of service 
                area; and
                    ``(D) the percentage of funding and amount of in-
                kind commitment from other sources.
            ``(8) Biennial evaluation.--Each regional center which 
        receives financial assistance under this subsection shall be 
        evaluated biennially by an evaluation panel appointed by the 
        Secretary. Each evaluation panel shall be composed of private 
        experts, none of whom shall be connected with the center 
        involved, and of Federal officials. Each evaluation panel shall 
        measure the involved center's performance against the objective 
        specified in paragraph (3). The Secretary shall not continue to 
        provide funding to a regional center unless its evaluation is 
        overall positive.
            ``(9) Continuing support.--After the second year of 
        assistance under this subsection, a regional center may receive 
        additional support under this subsection if it has received 
        positive evaluations and a finding by the Secretary that 
        continuation of Federal funding to the center was in the best 
        interest of provision of health information technology 
        extension services.

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

    ``(a) In General.--The Secretary, acting through the National 
Coordinator, shall establish a program in accordance with this section 
to facilitate and expand the electronic movement and use of health 
information among organizations according to nationally recognized 
standards.
    ``(b) Planning Grants.--The Secretary may award a grant to a State 
or qualified State-designated entity (as described in subsection (f)) 
that submits an application to the Secretary at such time, in such 
manner, and containing such information as the Secretary may specify, 
for the purpose of planning activities described in subsection (d).
    ``(c) Implementation Grants.--The Secretary may award a grant to a 
State or qualified State designated entity that--
            ``(1) has submitted, and the Secretary has approved, a plan 
        described in subsection (e) (regardless of whether such plan 
        was prepared using amounts awarded under subsection (b); and
            ``(2) submits an application at such time, in such manner, 
        and containing such information as the Secretary may specify.
    ``(d) Use of Funds.--Amounts received under a grant under 
subsection (c) shall be used to conduct activities to facilitate and 
expand the electronic movement and use of health information among 
organizations according to nationally recognized standards through 
activities that include--
            ``(1) enhancing broad and varied participation in the 
        authorized and secure nationwide electronic use and exchange of 
        health information;
            ``(2) identifying State or local resources available 
        towards a nationwide effort to promote health information 
        technology;
            ``(3) complementing other Federal grants, programs, and 
        efforts towards the promotion of health information technology;
            ``(4) providing technical assistance for the development 
        and dissemination of solutions to barriers to the exchange of 
        electronic health information;
            ``(5) promoting effective strategies to adopt and utilize 
        health information technology in medically underserved 
        communities;
            ``(6) assisting patients in utilizing health information 
        technology;
            ``(7) encouraging clinicians to work with Health 
        Information Technology Regional Extension Centers as described 
        in section 3012, to the extent they are available and valuable;
            ``(8) supporting public health agencies' authorized use of 
        and access to electronic health information;
            ``(9) promoting the use of electronic health records for 
        quality improvement including through quality measures 
        reporting; and
            ``(10) such other activities as the Secretary may specify.
    ``(e) Plan.--
            ``(1) In general.--A plan described in this subsection is a 
        plan that describes the activities to be carried out by a State 
        or by the qualified State-designated entity within such State 
        to facilitate and expand the electronic movement and use of 
        health information among organizations according to nationally 
        recognized standards and implementation specifications.
            ``(2) Required elements.--A plan described in paragraph (1) 
        shall--
                    ``(A) be pursued in the public interest;
                    ``(B) be consistent with the strategic plan 
                developed by the National Coordinator, (and, as 
                available) under section 3001;
                    ``(C) include a description of the ways the State 
                or qualified State-designated entity will carry out the 
                activities described in subsection (b); and
                    ``(D) contain such elements as the Secretary may 
                require.
    ``(f) Qualified State-Designated Entity.--For purposes of this 
section, to be a qualified State-designated entity, with respect to a 
State, an entity shall--
            ``(1) be designated by the State as eligible to receive 
        awards under this section;
            ``(2) be a not-for-profit entity with broad stakeholder 
        representation on its governing board;
            ``(3) demonstrate that one of its principal goals is to use 
        information technology to improve health care quality and 
        efficiency through the authorized and secure electronic 
        exchange and use of health information;
            ``(4) adopt nondiscrimination and conflict of interest 
        policies that demonstrate a commitment to open, fair, and 
        nondiscriminatory participation by stakeholders; and
            ``(5) conform to such other requirements as the Secretary 
        may establish.
    ``(g) Required Consultation.--In carrying out activities described 
in subsections (b) and (c), a State or qualified State-designated 
entity shall consult with and consider the recommendations of--
            ``(1) health care providers (including providers that 
        provide services to low income and underserved populations);
            ``(2) health plans;
            ``(3) patient or consumer organizations that represent the 
        population to be served;
            ``(4) health information technology vendors;
            ``(5) health care purchasers and employers;
            ``(6) public health agencies;
            ``(7) health professions schools, universities and 
        colleges;
            ``(8) clinical researchers;
            ``(9) other users of health information technology such as 
        the support and clerical staff of providers and others involved 
        in the care and care coordination of patients; and
            ``(10) such other entities, as may be determined 
        appropriate by the Secretary.
    ``(h) Continuous Improvement.--The Secretary shall annually 
evaluate the activities conducted under this section and shall, in 
awarding grants under this section, implement the lessons learned from 
such evaluation in a manner so that awards made subsequent to each such 
evaluation are made in a manner that, in the determination of the 
Secretary, will lead towards the greatest improvement in quality of 
care, decrease in costs, and the most effective authorized and secure 
electronic exchange of health information.
    ``(i) Required Match.--
            ``(1) In general.--For a fiscal year (beginning with fiscal 
        year 2011), the Secretary may not make a grant under this 
        section to a State unless the State agrees to make available 
        non-Federal contributions (which may include in-kind 
        contributions) toward the costs of a grant awarded under 
        subsection (c) in an amount equal to--
                    ``(A) for fiscal year 2011, not less than $1 for 
                each $10 of Federal funds provided under the grant;
                    ``(B) for fiscal year 2012, not less than $1 for 
                each $7 of Federal funds provided under the grant; and
                    ``(C) for fiscal year 2013 and each subsequent 
                fiscal year, not less than $1 for each $3 of Federal 
                funds provided under the grant.
            ``(2) Authority to require state match for fiscal years 
        before fiscal year 2011.--For any fiscal year during the grant 
        program under this section before fiscal year 2011, the 
        Secretary may determine the extent to which there shall be 
        required a non-Federal contribution from a State receiving a 
        grant under this section.

``SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN TRIBES FOR THE 
              DEVELOPMENT OF LOAN PROGRAMS TO FACILITATE THE WIDESPREAD 
              ADOPTION OF CERTIFIED EHR TECHNOLOGY.

    ``(a) In General.--The National Coordinator may award competitive 
grants to eligible entities for the establishment of programs for loans 
to health care providers to conduct the activities described in 
subsection (e).
    ``(b) Eligible Entity Defined.--For purposes of this subsection, 
the term `eligible entity' means a State or Indian tribe (as defined in 
the Indian Self-Determination and Education Assistance Act) that--
            ``(1) submits to the National Coordinator an application at 
        such time, in such manner, and containing such information as 
        the National Coordinator may require;
            ``(2) submits to the National Coordinator a strategic plan 
        in accordance with subsection (d) and provides to the National 
        Coordinator assurances that the entity will update such plan 
        annually in accordance with such subsection;
            ``(3) provides assurances to the National Coordinator that 
        the entity will establish a Loan Fund in accordance with 
        subsection (c);
            ``(4) provides assurances to the National Coordinator that 
        the entity will not provide a loan from the Loan Fund to a 
        health care provider unless the provider agrees to--
                    ``(A) submit reports on quality measures adopted by 
                the Federal Government (by not later than 90 days after 
                the date on which such measures are adopted), to--
                            ``(i) the Administrator of the Centers for 
                        Medicare & Medicaid Services (or his or her 
                        designee), in the case of an entity 
                        participating in the Medicare program under 
                        title XVIII of the Social Security Act or the 
                        Medicaid program under title XIX of such Act; 
                        or
                            ``(ii) the Secretary in the case of other 
                        entities;
                    ``(B) demonstrate to the satisfaction of the 
                Secretary (through criteria established by the 
                Secretary) that any certified EHR technology purchased, 
                improved, or otherwise financially supported under a 
                loan under this section is used to exchange health 
                information in a manner that, in accordance with law 
                and standards (as adopted under section 3004) 
                applicable to the exchange of information, improves the 
                quality of health care, such as promoting care 
                coordination; and
                    ``(C) comply with such other requirements as the 
                entity or the Secretary may require;
                    ``(D) include a plan on how health care providers 
                involved intend to maintain and support the certified 
                EHR technology over time;
                    ``(E) include a plan on how the health care 
                providers involved intend to maintain and support the 
                certified EHR technology that would be purchased with 
                such loan, including the type of resources expected to 
                be involved and any such other information as the State 
                or Indian Tribe, respectively, may require; and
            ``(5) agrees to provide matching funds in accordance with 
        subsection (h).
    ``(c) Establishment of Fund.--For purposes of subsection (b)(3), an 
eligible entity shall establish a certified EHR technology loan fund 
(referred to in this subsection as a `Loan Fund') and comply with the 
other requirements contained in this section. A grant to an eligible 
entity under this section shall be deposited in the Loan Fund 
established by the eligible entity. No funds authorized by other 
provisions of this title to be used for other purposes specified in 
this title shall be deposited in any Loan Fund.
    ``(d) Strategic Plan.--
            ``(1) In general.--For purposes of subsection (b)(2), a 
        strategic plan of an eligible entity under this subsection 
        shall identify the intended uses of amounts available to the 
        Loan Fund of such entity.
            ``(2) Contents.--A strategic plan under paragraph (1), with 
        respect to a Loan Fund of an eligible entity, shall include for 
        a year the following:
                    ``(A) A list of the projects to be assisted through 
                the Loan Fund during such year.
                    ``(B) A description of the criteria and methods 
                established for the distribution of funds from the Loan 
                Fund during the year.
                    ``(C) A description of the financial status of the 
                Loan Fund as of the date of submission of the plan.
                    ``(D) The short-term and long-term goals of the 
                Loan Fund.
    ``(e) Use of Funds.--Amounts deposited in a Loan Fund, including 
loan repayments and interest earned on such amounts, shall be used only 
for awarding loans or loan guarantees, making reimbursements described 
in subsection (g)(4)(A), or as a source of reserve and security for 
leveraged loans, the proceeds of which are deposited in the Loan Fund 
established under subsection (c). Loans under this section may be used 
by a health care provider to--
            ``(1) facilitate the purchase of certified EHR technology;
            ``(2) enhance the utilization of certified EHR technology;
            ``(3) train personnel in the use of such technology; or
            ``(4) improve the secure electronic exchange of health 
        information.
    ``(f) Types of Assistance.--Except as otherwise limited by 
applicable State law, amounts deposited into a Loan Fund under this 
section may only be used for the following:
            ``(1) To award loans that comply with the following:
                    ``(A) The interest rate for each loan shall not 
                exceed the market interest rate.
                    ``(B) The principal and interest payments on each 
                loan shall commence not later than 1 year after the 
                date the loan was awarded, and each loan shall be fully 
                amortized not later than 10 years after the date of the 
                loan.
                    ``(C) The Loan Fund shall be credited with all 
                payments of principal and interest on each loan awarded 
                from the Loan Fund.
            ``(2) To guarantee, or purchase insurance for, a local 
        obligation (all of the proceeds of which finance a project 
        eligible for assistance under this subsection) if the guarantee 
        or purchase would improve credit market access or reduce the 
        interest rate applicable to the obligation involved.
            ``(3) As a source of revenue or security for the payment of 
        principal and interest on revenue or general obligation bonds 
        issued by the eligible entity if the proceeds of the sale of 
        the bonds will be deposited into the Loan Fund.
            ``(4) To earn interest on the amounts deposited into the 
        Loan Fund.
            ``(5) To make reimbursements described in subsection 
        (g)(4)(A).
    ``(g) Administration of Loan Funds.--
            ``(1) Combined financial administration.--An eligible 
        entity may (as a convenience and to avoid unnecessary 
        administrative costs) combine, in accordance with applicable 
        State law, the financial administration of a Loan Fund 
        established under this subsection with the financial 
        administration of any other revolving fund established by the 
        entity if otherwise not prohibited by the law under which the 
        Loan Fund was established.
            ``(2) Cost of administering fund.--Each eligible entity may 
        annually use not to exceed 4 percent of the funds provided to 
        the entity under a grant under this section to pay the 
        reasonable costs of the administration of the programs under 
        this section, including the recovery of reasonable costs 
        expended to establish a Loan Fund which are incurred after the 
        date of the enactment of this title.
            ``(3) Guidance and regulations.--The National Coordinator 
        shall publish guidance and promulgate regulations as may be 
        necessary to carry out the provisions of this section, 
        including--
                    ``(A) provisions to ensure that each eligible 
                entity commits and expends funds allotted to the entity 
                under this section as efficiently as possible in 
                accordance with this title and applicable State laws; 
                and
                    ``(B) guidance to prevent waste, fraud, and abuse.
            ``(4) Private sector contributions.--
                    ``(A) In general.--A Loan Fund established under 
                this section may accept contributions from private 
                sector entities, except that such entities may not 
                specify the recipient or recipients of any loan issued 
                under this subsection. An eligible entity may agree to 
                reimburse a private sector entity for any contribution 
                made under this subparagraph, except that the amount of 
                such reimbursement may not be greater than the 
                principal amount of the contribution made.
                    ``(B) Availability of information.--An eligible 
                entity shall make publicly available the identity of, 
                and amount contributed by, any private sector entity 
                under subparagraph (A) and may issue letters of 
                commendation or make other awards (that have no 
                financial value) to any such entity.
    ``(h) Matching Requirements.--
            ``(1) In general.--The National Coordinator may not make a 
        grant under subsection (a) to an eligible entity unless the 
        entity agrees to make available (directly or through donations 
        from public or private entities) non-Federal contributions in 
        cash to the costs of carrying out the activities for which the 
        grant is awarded in an amount equal to not less than $1 for 
        each $5 of Federal funds provided under the grant.
            ``(2) Determination of amount of non-federal 
        contribution.--In determining the amount of non-Federal 
        contributions that an eligible entity has provided pursuant to 
        subparagraph (A), the National Coordinator may not include any 
        amounts provided to the entity by the Federal Government.
    ``(i) Effective Date.--The Secretary may not make an award under 
this section prior to January 1, 2010.

``SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE INFORMATION TECHNOLOGY 
              INTO CLINICAL EDUCATION.

    ``(a) In General.--The Secretary may award grants under this 
section to carry out demonstration projects to develop academic 
curricula integrating certified EHR technology in the clinical 
education of health professionals. Such awards shall be made on a 
competitive basis and pursuant to peer review.
    ``(b) Eligibility.--To be eligible to receive a grant under 
subsection (a), an entity shall--
            ``(1) submit to the Secretary an application at such time, 
        in such manner, and containing such information as the 
        Secretary may require;
            ``(2) submit to the Secretary a strategic plan for 
        integrating certified EHR technology in the clinical education 
        of health professionals to reduce medical errors and enhance 
        health care quality;
            ``(3) be--
                    ``(A) a school of medicine, osteopathic medicine, 
                dentistry, or pharmacy, a graduate program in 
                behavioral or mental health, or any other graduate 
                health professions school;
                    ``(B) a graduate school of nursing or physician 
                assistant studies;
                    ``(C) a consortium of two or more schools described 
                in subparagraph (A) or (B); or
                    ``(D) an institution with a graduate medical 
                education program in medicine, osteopathic medicine, 
                dentistry, pharmacy, nursing, or physician assistance 
                studies;
            ``(4) provide for the collection of data regarding the 
        effectiveness of the demonstration project to be funded under 
        the grant in improving the safety of patients, the efficiency 
        of health care delivery, and in increasing the likelihood that 
        graduates of the grantee will adopt and incorporate certified 
        EHR technology, in the delivery of health care services; and
            ``(5) provide matching funds in accordance with subsection 
        (d).
    ``(c) Use of Funds.--
            ``(1) In general.--With respect to a grant under subsection 
        (a), an eligible entity shall--
                    ``(A) use grant funds in collaboration with 2 or 
                more disciplines; and
                    ``(B) use grant funds to integrate certified EHR 
                technology into community-based clinical education.
            ``(2) Limitation.--An eligible entity shall not use amounts 
        received under a grant under subsection (a) to purchase 
        hardware, software, or services.
    ``(d) Financial Support.--The Secretary may not provide more than 
50 percent of the costs of any activity for which assistance is 
provided under subsection (a), except in an instance of national 
economic conditions which would render the cost-share requirement under 
this subsection detrimental to the program and upon notification to 
Congress as to the justification to waive the cost-share requirement.
    ``(e) Evaluation.--The Secretary shall take such action as may be 
necessary to evaluate the projects funded under this section and 
publish, make available, and disseminate the results of such 
evaluations on as wide a basis as is practicable.
    ``(f) Reports.--Not later than 1 year after the date of enactment 
of this title, and annually thereafter, the Secretary shall submit to 
the Committee on Health, Education, Labor, and Pensions and the 
Committee on Finance of the Senate, and the Committee on Energy and 
Commerce of the House of Representatives a report that--
            ``(1) describes the specific projects established under 
        this section; and
            ``(2) contains recommendations for Congress based on the 
        evaluation conducted under subsection (e).

``SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS ON HEALTH CARE.

    ``(a) In General.--The Secretary, in consultation with the Director 
of the National Science Foundation, shall provide assistance to 
institutions of higher education (or consortia thereof) to establish or 
expand medical health informatics education programs, including 
certification, undergraduate, and masters degree programs, for both 
health care and information technology students to ensure the rapid and 
effective utilization and development of health information 
technologies (in the United States health care infrastructure).
    ``(b) Activities.--Activities for which assistance may be provided 
under subsection (a) may include the following:
            ``(1) Developing and revising curricula in medical health 
        informatics and related disciplines.
            ``(2) Recruiting and retaining students to the program 
        involved.
            ``(3) Acquiring equipment necessary for student instruction 
        in these programs, including the installation of testbed 
        networks for student use.
            ``(4) Establishing or enhancing bridge programs in the 
        health informatics fields between community colleges and 
        universities.
    ``(c) Priority.--In providing assistance under subsection (a), the 
Secretary shall give preference to the following:
            ``(1) Existing education and training programs.
            ``(2) Programs designed to be completed in less than six 
        months.
    ``(d) Financial Support.--The Secretary may not provide more than 
50 percent of the costs of any activity for which assistance is 
provided under subsection (a), except in an instance of national 
economic conditions which would render the cost-share requirement under 
this subsection detrimental to the program and upon notification to 
Congress as to the justification to waive the cost-share requirement.

``SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS.

    ``(a) Reports.--The Secretary may require that an entity receiving 
assistance under this subtitle shall submit to the Secretary, not later 
than the date that is 1 year after the date of receipt of such 
assistance, a report that includes--
            ``(1) an analysis of the effectiveness of the activities 
        for which the entity receives such assistance, as compared to 
        the goals for such activities; and
            ``(2) an analysis of the impact of the project on health 
        care quality and safety.
    ``(b) Requirement to Improve Quality of Care and Decrease in 
Costs.--The National Coordinator shall annually evaluate the activities 
conducted under this subtitle and shall, in awarding grants, implement 
the lessons learned from such evaluation in a manner so that awards 
made subsequent to each such evaluation are made in a manner that, in 
the determination of the National Coordinator, will result in the 
greatest improvement in the quality and efficiency of health care.

``SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS.

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

                       PART II--MEDICARE PROGRAM

SEC. 4311. INCENTIVES FOR ELIGIBLE PROFESSIONALS.

    (a) Incentive Payments.--Section 1848 of the Social Security Act 
(42 U.S.C. 1395w-4) is amended by adding at the end the following new 
subsection:
    ``(o) Incentives for Adoption and Meaningful Use of Certified EHR 
Technology.--
            ``(1) Incentive payments.--
                    ``(A) In general.--Subject to the succeeding 
                subparagraphs of this paragraph, with respect to 
                covered professional services furnished by an eligible 
                professional during a payment year (as defined in 
                subparagraph (E)), if the eligible professional is a 
                meaningful EHR user (as determined under paragraph (2)) 
                for the reporting period with respect to such year, in 
                addition to the amount otherwise paid under this part, 
                there also shall be paid to the eligible professional 
                (or to an employer or facility in the cases described 
                in clause (A) of section 1842(b)(6)), from the Federal 
                Supplementary Medical Insurance Trust Fund established 
                under section 1841 an amount equal to 75 percent of the 
                Secretary's estimate (based on claims submitted not 
                later than 2 months after the end of the payment year) 
                of the allowed charges under this part for all such 
                covered professional services furnished by the eligible 
                professional during such year.
                    ``(B) Limitations on amounts of incentive 
                payments.--
                            ``(i) In general.--In no case shall the 
                        amount of the incentive payment provided under 
                        this paragraph for an eligible professional for 
                        a payment year exceed the applicable amount 
                        specified under this subparagraph with respect 
                        to such eligible professional and such year.
                            ``(ii) Amount.--Subject to clause (iii), 
                        the applicable amount specified in this 
                        subparagraph for an eligible professional is as 
                        follows:
                                    ``(I) For the first payment year 
                                for such professional, $15,000.
                                    ``(II) For the second payment year 
                                for such professional, $12,000.
                                    ``(III) For the third payment year 
                                for such professional, $8,000.
                                    ``(IV) For the fourth payment year 
                                for such professional, $4,000.
                                    ``(V) For the fifth payment year 
                                for such professional, $2,000.
                                    ``(VI) For any succeeding payment 
                                year for such professional, $0.
                            ``(iii) Phase down for eligible 
                        professionals first adopting ehr after 2013.--
                        If the first payment year for an eligible 
                        professional is after 2013, then the amount 
                        specified in this subparagraph for a payment 
                        year for such professional is the same as the 
                        amount specified in clause (ii) for such 
                        payment year for an eligible professional whose 
                        first payment year is 2013. If the first 
                        payment year for an eligible professional is 
                        after 2015 then the applicable amount specified 
                        in this subparagraph for such professional for 
                        such year and any subsequent year shall be $0.
                    ``(C) Non-application to hospital-based eligible 
                professionals.--
                            ``(i) In general.--No incentive payment may 
                        be made under this paragraph in the case of a 
                        hospital-based eligible professional.
                            ``(ii) Hospital-based eligible 
                        professional.--For purposes of clause (i), the 
                        term `hospital-based eligible professional' 
                        means, with respect to covered professional 
                        services furnished by an eligible professional 
                        during the reporting period for a payment year, 
                        an eligible professional, such as a 
                        pathologist, anesthesiologist, or emergency 
                        physician, who furnishes substantially all of 
                        such services in a hospital setting (whether 
                        inpatient or outpatient) and through the use of 
                        the facilities and equipment, including 
                        computer equipment, of the hospital.
                    ``(D) Payment.--
                            ``(i) Form of payment.--The payment under 
                        this paragraph may be in the form of a single 
                        consolidated payment or in the form of such 
                        periodic installments as the Secretary may 
                        specify.
                            ``(ii) Coordination of application of 
                        limitation for professionals in different 
                        practices.--In the case of an eligible 
                        professional furnishing covered professional 
                        services in more than one practice (as 
                        specified by the Secretary), the Secretary 
                        shall establish rules to coordinate the 
                        incentive payments, including the application 
                        of the limitation on amounts of such incentive 
                        payments under this paragraph, among such 
                        practices.
                            ``(iii) Coordination with medicaid.--The 
                        Secretary shall seek, to the maximum extent 
                        practicable, to avoid duplicative requirements 
                        from Federal and State Governments to 
                        demonstrate meaningful use of certified EHR 
                        technology under this title and title XIX. The 
                        Secretary may also adjust the reporting periods 
                        under such title and such subsections in order 
                        to carry out this clause.
                    ``(E) Payment year defined.--
                            ``(i) In general.--For purposes of this 
                        subsection, the term `payment year' means a 
                        year beginning with 2011.
                            ``(ii) First, second, etc. payment year.--
                        The term `first payment year' means, with 
                        respect to covered professional services 
                        furnished by an eligible professional, the 
                        first year for which an incentive payment is 
                        made for such services under this subsection. 
                        The terms `second payment year', `third payment 
                        year', `fourth payment year', and `fifth 
                        payment year' mean, with respect to covered 
                        professional services furnished by such 
                        eligible professional, each successive year 
                        immediately following the first payment year 
                        for such professional.
            ``(2) Meaningful ehr user.--
                    ``(A) In general.--For purposes of paragraph (1), 
                an eligible professional shall be treated as a 
                meaningful EHR user for a reporting period for a 
                payment year (or, for purposes of subsection (a)(7), 
                for a reporting period under such subsection for a 
                year) if each of the following requirements is met:
                            ``(i) Meaningful use of certified ehr 
                        technology.--The eligible professional 
                        demonstrates to the satisfaction of the 
                        Secretary, in accordance with subparagraph 
                        (C)(i), that during such period the 
                        professional is using certified EHR technology 
                        in a meaningful manner, which shall include the 
                        use of electronic prescribing as determined to 
                        be appropriate by the Secretary.
                            ``(ii) Information exchange.--The eligible 
                        professional demonstrates to the satisfaction 
                        of the Secretary, in accordance with 
                        subparagraph (C)(i), that during such period 
                        such certified EHR technology is connected in a 
                        manner that provides, in accordance with law 
                        and standards applicable to the exchange of 
                        information, for the electronic exchange of 
                        health information to improve the quality of 
                        health care, such as promoting care 
                        coordination.
                            ``(iii) Reporting on measures using ehr.--
                        Subject to subparagraph (B)(ii) and using such 
                        certified EHR technology, the eligible 
                        professional submits information for such 
                        period, in a form and manner specified by the 
                        Secretary, on such clinical quality measures 
                        and such other measures as selected by the 
                        Secretary under subparagraph (B)(i).
                The Secretary may provide for the use of alternative 
                means for meeting the requirements of clauses (i), 
                (ii), and (iii) in the case of an eligible professional 
                furnishing covered professional services in a group 
                practice (as defined by the Secretary). The Secretary 
                shall seek to improve the use of electronic health 
                records and health care quality over time by requiring 
                more stringent measures of meaningful use selected 
                under this paragraph.
                    ``(B) Reporting on measures.--
                            ``(i) Selection.--The Secretary shall 
                        select measures for purposes of subparagraph 
                        (A)(iii) but only consistent with the 
                        following:
                                    ``(I) The Secretary shall provide 
                                preference to clinical quality measures 
                                that have been endorsed by the entity 
                                with a contract with the Secretary 
                                under section 1890(a).
                                    ``(II) Prior to any measure being 
                                selected under this subparagraph, the 
                                Secretary shall publish in the Federal 
                                Register such measure and provide for a 
                                period of public comment on such 
                                measure.
                            ``(ii) Limitation.--The Secretary may not 
                        require the electronic reporting of information 
                        on clinical quality measures under subparagraph 
                        (A)(iii) unless the Secretary has the capacity 
                        to accept the information electronically, which 
                        may be on a pilot basis.
                            ``(iii) Coordination of reporting of 
                        information.--In selecting such measures, and 
                        in establishing the form and manner for 
                        reporting measures under subparagraph (A)(iii), 
                        the Secretary shall seek to avoid redundant or 
                        duplicative reporting otherwise required, 
                        including reporting under subsection (k)(2)(C).
                    ``(C) Demonstration of meaningful use of certified 
                ehr technology and information exchange.--
                            ``(i) In general.--A professional may 
                        satisfy the demonstration requirement of 
                        clauses (i) and (ii) of subparagraph (A) 
                        through means specified by the Secretary, which 
                        may include--
                                    ``(I) an attestation;
                                    ``(II) the submission of claims 
                                with appropriate coding (such as a code 
                                indicating that a patient encounter was 
                                documented using certified EHR 
                                technology);
                                    ``(III) a survey response;
                                    ``(IV) reporting under subparagraph 
                                (A)(iii); and
                                    ``(V) other means specified by the 
                                Secretary.
                            ``(ii) Use of part d data.--Notwithstanding 
                        sections 1860D-15(d)(2)(B) and 1860D-15(f)(2), 
                        the Secretary may use data regarding drug 
                        claims submitted for purposes of section 1860D-
                        15 that are necessary for purposes of 
                        subparagraph (A).
            ``(3) Application.--
                    ``(A) Physician reporting system rules.--Paragraphs 
                (5), (6), and (8) of subsection (k) shall apply for 
                purposes of this subsection in the same manner as they 
                apply for purposes of such subsection.
                    ``(B) Coordination with other payments.--The 
                provisions of this subsection shall not be taken into 
                account in applying the provisions of subsection (m) of 
                this section and of section 1833(m) and any payment 
                under such provisions shall not be taken into account 
                in computing allowable charges under this subsection.
                    ``(C) Limitations on review.--There shall be no 
                administrative or judicial review under section 1869, 
                section 1878, or otherwise of the determination of any 
                incentive payment under this subsection and the payment 
                adjustment under subsection (a)(7), including the 
                determination of a meaningful EHR user under paragraph 
                (2), a limitation under paragraph (1)(B), and the 
                exception under subsection (a)(7)(B).
                    ``(D) Posting on website.--The Secretary shall post 
                on the Internet website of the Centers for Medicare & 
                Medicaid Services, in an easily understandable format, 
                a list of the names, business addresses, and business 
                phone numbers of the eligible professionals who are 
                meaningful EHR users and, as determined appropriate by 
                the Secretary, of group practices receiving incentive 
                payments under paragraph (1).
            ``(4) Certified ehr technology defined.--For purposes of 
        this section, the term `certified EHR technology' means a 
        qualified electronic health record (as defined in 3000(13) of 
        the Public Health Service Act) that is certified pursuant to 
        section 3001(c)(5) of such Act as meeting standards adopted 
        under section 3004 of such Act that are applicable to the type 
        of record involved (as determined by the Secretary, such as an 
        ambulatory electronic health record for office-based physicians 
        or an inpatient hospital electronic health record for 
        hospitals).
            ``(5) Definitions.--For purposes of this subsection:
                    ``(A) Covered professional services.--The term 
                `covered professional services' has the meaning given 
                such term in subsection (k)(3).
                    ``(B) Eligible professional.--The term `eligible 
                professional' means a physician, as defined in section 
                1861(r).
                    ``(C) Reporting period.--The term `reporting 
                period' means any period (or periods), with respect to 
                a payment year, as specified by the Secretary.''.
    (b) Incentive Payment Adjustment.--Section 1848(a) of the Social 
Security Act (42 U.S.C. 1395w-4(a)) is amended by adding at the end the 
following new paragraph:
            ``(7) Incentives for meaningful use of certified ehr 
        technology.--
                    ``(A) Adjustment.--
                            ``(i) In general.--Subject to subparagraphs 
                        (B) and (D), with respect to covered 
                        professional services furnished by an eligible 
                        professional during 2016 or any subsequent 
                        payment year, if the eligible professional is 
                        not a meaningful EHR user (as determined under 
                        subsection (o)(2)) for a reporting period for 
                        the year, the fee schedule amount for such 
                        services furnished by such professional during 
                        the year (including the fee schedule amount for 
                        purposes of determining a payment based on such 
                        amount) shall be equal to the applicable 
                        percent of the fee schedule amount that would 
                        otherwise apply to such services under this 
                        subsection (determined after application of 
                        paragraph (3) but without regard to this 
                        paragraph).
                            ``(ii) Applicable percent.--Subject to 
                        clause (iii), for purposes of clause (i), the 
                        term `applicable percent' means--
                                    ``(I) for 2016, 99 percent;
                                    ``(II) for 2017, 98 percent; and
                                    ``(III) for 2018 and each 
                                subsequent year, 97 percent.
                            ``(iii) Authority to decrease applicable 
                        percentage for 2019 and subsequent years.--For 
                        2019 and each subsequent year, if the Secretary 
                        finds that the proportion of eligible 
                        professionals who are meaningful EHR users (as 
                        determined under subsection (o)(2)) is less 
                        than 75 percent, the applicable percent shall 
                        be decreased by 1 percentage point from the 
                        applicable percent in the preceding year, but 
                        in no case shall the applicable percent be less 
                        than 95 percent.
                    ``(B) Significant hardship exception.--The 
                Secretary may, on a case-by-case basis, exempt an 
                eligible professional from the application of the 
                payment adjustment under subparagraph (A) if the 
                Secretary determines, subject to annual renewal, that 
                compliance with the requirement for being a meaningful 
                EHR user would result in a significant hardship, such 
                as in the case of an eligible professional who 
                practices in a rural area without sufficient Internet 
                access. In no case may an eligible professional be 
                granted an exemption under this subparagraph for more 
                than 5 years.
                    ``(C) Application of physician reporting system 
                rules.--Paragraphs (5), (6), and (8) of subsection (k) 
                shall apply for purposes of this paragraph in the same 
                manner as they apply for purposes of such subsection.
                    ``(D) Non-application to hospital-based eligible 
                professionals.--No payment adjustment may be made under 
                subparagraph (A) in the case of hospital-based eligible 
                professionals (as defined in subsection (o)(1)(C)(ii)).
                    ``(E) Definitions.--For purposes of this paragraph:
                            ``(i) Covered professional services.--The 
                        term `covered professional services' has the 
                        meaning given such term in subsection (k)(3).
                            ``(ii) Eligible professional.--The term 
                        `eligible professional' means a physician, as 
                        defined in section 1861(r).
                            ``(iii) Reporting period.--The term 
                        `reporting period' means, with respect to a 
                        year, a period specified by the Secretary.''.
    (c) Application to Certain HMO-Affiliated Eligible Professionals.--
Section 1853 of the Social Security Act (42 U.S.C. 1395w-23) is amended 
by adding at the end the following new subsection:
    ``(l) Application of Eligible Professional Incentives for Certain 
MA Organizations for Adoption and Meaningful Use of Certified EHR 
Technology.--
            ``(1) In general.--Subject to paragraphs (3) and (4), in 
        the case of a qualifying MA organization, the provisions of 
        sections 1848(o) and 1848(a)(7) shall apply with respect to 
        eligible professionals described in paragraph (2) of the 
        organization who the organization attests under paragraph (6) 
        to be meaningful EHR users in a similar manner as they apply to 
        eligible professionals under such sections. Incentive payments 
        under paragraph (3) shall be made to and payment adjustments 
        under paragraph (4) shall apply to such qualifying 
        organizations.
            ``(2) Eligible professional described.--With respect to a 
        qualifying MA organization, an eligible professional described 
        in this paragraph is an eligible professional (as defined for 
        purposes of section 1848(o)) who--
                    ``(A)(i) is employed by the organization; or
                    ``(ii)(I) is employed by, or is a partner of, an 
                entity that through contract with the organization 
                furnishes at least 80 percent of the entity's patient 
                care services to enrollees of such organization; and
                    ``(II) furnishes at least 80 percent of the 
                professional services of the eligible professional to 
                enrollees of the organization; and
                    ``(B) furnishes, on average, at least 20 hours per 
                week of patient care services.
            ``(3) Eligible professional incentive payments.--
                    ``(A) In general.--In applying section 1848(o) 
                under paragraph (1), instead of the additional payment 
                amount under section 1848(o)(1)(A) and subject to 
                subparagraph (B), the Secretary may substitute an 
                amount determined by the Secretary to the extent 
                feasible and practical to be similar to the estimated 
                amount in the aggregate that would be payable if 
                payment for services furnished by such professionals 
                was payable under part B instead of this part.
                    ``(B) Avoiding duplication of payments.--
                            ``(i) In general.--If an eligible 
                        professional described in paragraph (2) is 
                        eligible for the maximum incentive payment 
                        under section 1848(o)(1)(A) for the same 
                        payment period, the payment incentive shall be 
                        made only under such section and not under this 
                        subsection.
                            ``(ii) Methods.--In the case of an eligible 
                        professional described in paragraph (2) who is 
                        eligible for an incentive payment under section 
                        1848(o)(1)(A) but is not described in clause 
                        (i) for the same payment period, the Secretary 
                        shall develop a process--
                                    ``(I) to ensure that duplicate 
                                payments are not made with respect to 
                                an eligible professional both under 
                                this subsection and under section 
                                1848(o)(1)(A); and
                                    ``(II) to collect data from 
                                Medicare Advantage organizations to 
                                ensure against such duplicate payments.
                    ``(C) Fixed schedule for application of limitation 
                on incentive payments for all eligible professionals.--
                In applying section 1848(o)(1)(B)(ii) under 
                subparagraph (A), in accordance with rules specified by 
                the Secretary, a qualifying MA organization shall 
                specify a year (not earlier than 2011) that shall be 
                treated as the first payment year for all eligible 
                professionals with respect to such organization.
            ``(4) Payment adjustment.--
                    ``(A) In general.--In applying section 1848(a)(7) 
                under paragraph (1), instead of the payment adjustment 
                being an applicable percent of the fee schedule amount 
                for a year under such section, subject to subparagraph 
                (D), the payment adjustment under paragraph (1) shall 
                be equal to the percent specified in subparagraph (B) 
                for such year of the payment amount otherwise provided 
                under this section for such year.
                    ``(B) Specified percent.--The percent specified 
                under this subparagraph for a year is 100 percent minus 
                a number of percentage points equal to the product of--
                            ``(i) the number of percentage points by 
                        which the applicable percent (under section 
                        1848(a)(7)(A)(ii)) for the year is less than 
                        100 percent; and
                            ``(ii) the Medicare physician expenditure 
                        proportion specified in subparagraph (C) for 
                        the year.
                    ``(C) Medicare physician expenditure proportion.--
                The Medicare physician expenditure proportion under 
                this subparagraph for a year is the Secretary's 
                estimate of the proportion, of the expenditures under 
                parts A and B that are not attributable to this part, 
                that are attributable to expenditures for physicians' 
                services.
                    ``(D) Application of payment adjustment.--In the 
                case that a qualifying MA organization attests that not 
                all eligible professionals are meaningful EHR users 
                with respect to a year, the Secretary shall apply the 
                payment adjustment under this paragraph based on the 
                proportion of such eligible professionals that are not 
                meaningful EHR users for such year.
            ``(5) Qualifying ma organization defined.--In this 
        subsection and subsection (m), the term `qualifying MA 
        organization' means a Medicare Advantage organization that is 
        organized as a health maintenance organization (as defined in 
        section 2791(b)(3) of the Public Health Service Act).
            ``(6) Meaningful ehr user attestation.--For purposes of 
        this subsection and subsection (m), a qualifying MA 
        organization shall submit an attestation, in a form and manner 
        specified by the Secretary which may include the submission of 
        such attestation as part of submission of the initial bid under 
        section 1854(a)(1)(A)(iv), identifying--
                    ``(A) whether each eligible professional described 
                in paragraph (2), with respect to such organization is 
                a meaningful EHR user (as defined in section 
                1848(o)(2)) for a year specified by the Secretary; and
                    ``(B) whether each eligible hospital described in 
                subsection (m)(1), with respect to such organization, 
                is a meaningful EHR user (as defined in section 
                1886(n)(3)) for an applicable period specified by the 
                Secretary.''.
    (d) Conforming Amendments.--Section 1853 of the Social Security Act 
(42 U.S.C. 1395w-23) is amended--
            (1) in subsection (a)(1)(A), by striking ``and (i)'' and 
        inserting ``(i), and (l)'';
            (2) in subsection (c)--
                    (A) in paragraph (1)(D)(i), by striking ``section 
                1886(h)'' and inserting ``sections 1848(o) and 
                1886(h)''; and
                    (B) in paragraph (6)(A), by inserting after ``under 
                part B,'' the following: ``excluding expenditures 
                attributable to subsections (a)(7) and (o) of section 
                1848,''; and
            (3) in subsection (f), by inserting ``and for payments 
        under subsection (l)'' after ``with the organization''.
    (e) Conforming Amendments to e-Prescribing.--
            (1) Section 1848(a)(5)(A) of the Social Security Act (42 
        U.S.C. 1395w-4(a)(5)(A)) is amended--
                    (A) in clause (i), by striking ``or any subsequent 
                year'' and inserting ``, 2013, 2014, or 2015''; and
                    (B) in clause (ii), by striking ``and each 
                subsequent year'' and inserting ``and 2015''.
            (2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w-
        4(m)(2)) is amended--
                    (A) in subparagraph (A), by striking ``For 2009'' 
                and inserting ``Subject to subparagraph (D), for 
                2009''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(D) Limitation with respect to ehr incentive 
                payments.--The provisions of this paragraph shall not 
                apply to an eligible professional (or, in the case of a 
                group practice under paragraph (3)(C), to the group 
                practice) if, for the reporting period the eligible 
                professional (or group practice) receives an incentive 
                payment under subsection (o)(1)(A) with respect to a 
                certified EHR technology (as defined in subsection 
                (o)(4)) that has the capability of electronic 
                prescribing.''.

SEC. 4312. INCENTIVES FOR HOSPITALS.

    (a) Incentive Payment.--Section 1886 of the Social Security Act (42 
U.S.C. 1395ww) is amended by adding at the end the following new 
subsection:
    ``(n) Incentives for Adoption and Meaningful Use of Certified EHR 
Technology.--
            ``(1) In general.--Subject to the succeeding provisions of 
        this subsection, with respect to inpatient hospital services 
        furnished by an eligible hospital during a payment year (as 
        defined in paragraph (2)(G)), if the eligible hospital is a 
        meaningful EHR user (as determined under paragraph (3)) for the 
        reporting period with respect to such year, in addition to the 
        amount otherwise paid under this section, there also shall be 
        paid to the eligible hospital, from the Federal Hospital 
        Insurance Trust Fund established under section 1817, an amount 
        equal to the applicable amount specified in paragraph (2)(A) 
        for the hospital for such payment year.
            ``(2) Payment amount.--
                    ``(A) In general.--Subject to the succeeding 
                subparagraphs of this paragraph, the applicable amount 
                specified in this subparagraph for an eligible hospital 
                for a payment year is equal to the product of the 
                following:
                            ``(i) Initial amount.--The sum of--
                                    ``(I) the base amount specified in 
                                subparagraph (B); plus
                                    ``(II) the discharge related amount 
                                specified in subparagraph (C) for a 12-
                                month period selected by the Secretary 
                                with respect to such payment year.
                            ``(ii) Medicare share.--The Medicare share 
                        as specified in subparagraph (D) for the 
                        hospital for a period selected by the Secretary 
                        with respect to such payment year.
                            ``(iii) Transition factor.--The transition 
                        factor specified in subparagraph (E) for the 
                        hospital for the payment year.
                    ``(B) Base amount.--The base amount specified in 
                this subparagraph is $2,000,000.
                    ``(C) Discharge related amount.--The discharge 
                related amount specified in this subparagraph for a 12-
                month period selected by the Secretary shall be 
                determined as the sum of the amount, based upon total 
                discharges (regardless of any source of payment) for 
                the period, for each discharge up to the 23,000th 
                discharge as follows:
                            ``(i) For the 1,150th through the 23,000th 
                        discharge, $200.
                            ``(ii) For any discharge greater than the 
                        23,000th, $0.
                    ``(D) Medicare share.--The Medicare share specified 
                under this subparagraph for a hospital for a period 
                selected by the Secretary for a payment year is equal 
                to the fraction--
                            ``(i) the numerator of which is the sum 
                        (for such period and with respect to the 
                        hospital) of--
                                    ``(I) the number of inpatient-bed-
                                days (as established by the Secretary) 
                                which are attributable to individuals 
                                with respect to whom payment may be 
                                made under part A; and
                                    ``(II) the number of inpatient-bed-
                                days (as so established) which are 
                                attributable to individuals who are 
                                enrolled with a Medicare Advantage 
                                organization under part C; and
                            ``(ii) the denominator of which is the 
                        product of--
                                    ``(I) the total number of 
                                inpatient-bed-days with respect to the 
                                hospital during such period; and
                                    ``(II) the total amount of the 
                                hospital's charges during such period, 
                                not including any charges that are 
                                attributable to charity care (as such 
                                term is used for purposes of hospital 
                                cost reporting under this title), 
                                divided by the total amount of the 
                                hospital's charges during such period.
                Insofar as the Secretary determines that data are not 
                available on charity care necessary to calculate the 
                portion of the formula specified in clause (ii)(II), 
                the Secretary shall use data on uncompensated care and 
                may adjust such data so as to be an appropriate proxy 
                for charity care including a downward adjustment to 
                eliminate bad debt data from uncompensated care data. 
                In the absence of the data necessary, with respect to a 
                hospital, for the Secretary to compute the amount 
                described in clause (ii)(II), the amount under such 
                clause shall be deemed to be 1. In the absence of data, 
                with respect to a hospital, necessary to compute the 
                amount described in clause (i)(II), the amount under 
                such clause shall be deemed to be 0.
                    ``(E) Transition factor specified.--
                            ``(i) In general.--Subject to clause (ii), 
                        the transition factor specified in this 
                        subparagraph for an eligible hospital for a 
                        payment year is as follows:
                                    ``(I) For the first payment year 
                                for such hospital, 1.
                                    ``(II) For the second payment year 
                                for such hospital, \3/4\.
                                    ``(III) For the third payment year 
                                for such hospital, \1/2\.
                                    ``(IV) For the fourth payment year 
                                for such hospital, \1/4\.
                                    ``(V) For any succeeding payment 
                                year for such hospital, 0.
                            ``(ii) Phase down for eligible hospitals 
                        first adopting ehr after 2013.--If the first 
                        payment year for an eligible hospital is after 
                        2013, then the transition factor specified in 
                        this subparagraph for a payment year for such 
                        hospital is the same as the amount specified in 
                        clause (i) for such payment year for an 
                        eligible hospital for which the first payment 
                        year is 2013. If the first payment year for an 
                        eligible hospital is after 2015 then the 
                        transition factor specified in this 
                        subparagraph for such hospital and for such 
                        year and any subsequent year shall be 0.
                    ``(F) Form of payment.--The payment under this 
                subsection for a payment year may be in the form of a 
                single consolidated payment or in the form of such 
                periodic installments as the Secretary may specify.
                    ``(G) Payment year defined.--
                            ``(i) In general.--For purposes of this 
                        subsection, the term `payment year' means a 
                        fiscal year beginning with fiscal year 2011.
                            ``(ii) First, second, etc. payment year.--
                        The term `first payment year' means, with 
                        respect to inpatient hospital services 
                        furnished by an eligible hospital, the first 
                        fiscal year for which an incentive payment is 
                        made for such services under this subsection. 
                        The terms `second payment year', `third payment 
                        year', and `fourth payment year' mean, with 
                        respect to an eligible hospital, each 
                        successive year immediately following the first 
                        payment year for that hospital.
            ``(3) Meaningful ehr user.--
                    ``(A) In general.--For purposes of paragraph (1), 
                an eligible hospital shall be treated as a meaningful 
                EHR user for a reporting period for a payment year (or, 
                for purposes of subsection (b)(3)(B)(ix), for a 
                reporting period under such subsection for a fiscal 
                year) if each of the following requirements are met:
                            ``(i) Meaningful use of certified ehr 
                        technology.--The eligible hospital demonstrates 
                        to the satisfaction of the Secretary, in 
                        accordance with subparagraph (C)(i), that 
                        during such period the hospital is using 
                        certified EHR technology in a meaningful 
                        manner.
                            ``(ii) Information exchange.--The eligible 
                        hospital demonstrates to the satisfaction of 
                        the Secretary, in accordance with subparagraph 
                        (C)(i), that during such period such certified 
                        EHR technology is connected in a manner that 
                        provides, in accordance with law and standards 
                        applicable to the exchange of information, for 
                        the electronic exchange of health information 
                        to improve the quality of health care, such as 
                        promoting care coordination.
                            ``(iii) Reporting on measures using ehr.--
                        Subject to subparagraph (B)(ii) and using such 
                        certified EHR technology, the eligible hospital 
                        submits information for such period, in a form 
                        and manner specified by the Secretary, on such 
                        clinical quality measures and such other 
                        measures as selected by the Secretary under 
                        subparagraph (B)(i).
                The Secretary shall seek to improve the use of 
                electronic health records and health care quality over 
                time by requiring more stringent measures of meaningful 
                use selected under this paragraph.
                    ``(B) Reporting on measures.--
                            ``(i) Selection.--The Secretary shall 
                        select measures for purposes of subparagraph 
                        (A)(iii) but only consistent with the 
                        following:
                                    ``(I) The Secretary shall provide 
                                preference to clinical quality measures 
                                that have been selected for purposes of 
                                applying subsection (b)(3)(B)(viii) or 
                                that have been endorsed by the entity 
                                with a contract with the Secretary 
                                under section 1890(a).
                                    ``(II) Prior to any measure (other 
                                than a clinical quality measure that 
                                has been selected for purposes of 
                                applying subsection (b)(3)(B)(viii)) 
                                being selected under this subparagraph, 
                                the Secretary shall publish in the 
                                Federal Register such measure and 
                                provide for a period of public comment 
                                on such measure.
                            ``(ii) Limitations.--The Secretary may not 
                        require the electronic reporting of information 
                        on clinical quality measures under subparagraph 
                        (A)(iii) unless the Secretary has the capacity 
                        to accept the information electronically, which 
                        may be on a pilot basis.
                            ``(iii) Coordination of reporting of 
                        information.--In selecting such measures, and 
                        in establishing the form and manner for 
                        reporting measures under subparagraph (A)(iii), 
                        the Secretary shall seek to avoid redundant or 
                        duplicative reporting with reporting otherwise 
                        required, including reporting under subsection 
                        (b)(3)(B)(viii).
                    ``(C) Demonstration of meaningful use of certified 
                ehr technology and information exchange.--
                            ``(i) In general.--A hospital may satisfy 
                        the demonstration requirement of clauses (i) 
                        and (ii) of subparagraph (A) through means 
                        specified by the Secretary, which may include--
                                    ``(I) an attestation;
                                    ``(II) the submission of claims 
                                with appropriate coding (such as a code 
                                indicating that inpatient care was 
                                documented using certified EHR 
                                technology);
                                    ``(III) a survey response;
                                    ``(IV) reporting under subparagraph 
                                (A)(iii); and
                                    ``(V) other means specified by the 
                                Secretary.
                            ``(ii) Use of part d data.--Notwithstanding 
                        sections 1860D-15(d)(2)(B) and 1860D-15(f)(2), 
                        the Secretary may use data regarding drug 
                        claims submitted for purposes of section 1860D-
                        15 that are necessary for purposes of 
                        subparagraph (A).
            ``(4) Application.--
                    ``(A) Limitations on review.--There shall be no 
                administrative or judicial review under section 1869, 
                section 1878, or otherwise of the determination of any 
                incentive payment under this subsection and the payment 
                adjustment under subsection (b)(3)(B)(ix), including 
                the determination of a meaningful EHR user under 
                paragraph (3), determination of measures applicable to 
                services furnished by eligible hospitals under this 
                subsection, and the exception under subsection 
                (b)(3)(B)(ix)(II).
                    ``(B) Posting on website.--The Secretary shall post 
                on the Internet website of the Centers for Medicare & 
                Medicaid Services, in an easily understandable format, 
                a list of the names of the eligible hospitals that are 
                meaningful EHR users under this subsection or 
                subsection (b)(3)(B)(ix) and other relevant data as 
                determined appropriate by the Secretary. The Secretary 
                shall ensure that a hospital has the opportunity to 
                review the other relevant data that are to be made 
                public with respect to the hospital prior to such data 
                being made public.
            ``(5) Certified ehr technology defined.--The term 
        `certified EHR technology' has the meaning given such term in 
        section 1848(o)(4).
            ``(6) Definitions.--For purposes of this subsection:
                    ``(A) Eligible hospital.--The term `eligible 
                hospital' means a subsection (d) hospital.
                    ``(B) Reporting period.--The term `reporting 
                period' means any period (or periods), with respect to 
                a payment year, as specified by the Secretary.''.
    (b) Incentive Market Basket Adjustment.--Section 1886(b)(3)(B) of 
the Social Security Act (42 U.S.C. 1395ww(b)(3)(B)) is amended--
            (1) in clause (viii)(I), by inserting ``(or, beginning with 
        fiscal year 2016, by one-quarter)'' after ``2.0 percentage 
        points''; and
            (2) by adding at the end the following new clause:
    ``(ix)(I) For purposes of clause (i) for fiscal year 2016 and each 
subsequent fiscal year, in the case of an eligible hospital (as defined 
in subsection (n)(6)(A)) that is not a meaningful EHR user (as defined 
in subsection (n)(3)) for the reporting period for such fiscal year, 
three-quarters of the applicable percentage increase otherwise 
applicable under clause (i) for such fiscal year shall be reduced by 
33\1/3\ percent for fiscal year 2016, 66\2/3\ percent for fiscal year 
2017, and 100 percent for fiscal year 2018 and each subsequent fiscal 
year. Such reduction shall apply only with respect to the fiscal year 
involved and the Secretary shall not take into account such reduction 
in computing the applicable percentage increase under clause (i) for a 
subsequent fiscal year.
    ``(II) The Secretary may, on a case-by-case basis, exempt a 
subsection (d) hospital from the application of subclause (I) with 
respect to a fiscal year if the Secretary determines, subject to annual 
renewal, that requiring such hospital to be a meaningful EHR user 
during such fiscal year would result in a significant hardship, such as 
in the case of a hospital in a rural area without sufficient Internet 
access. In no case may a hospital be granted an exemption under this 
subclause for more than 5 years.
    ``(III) For fiscal year 2016 and each subsequent fiscal year, a 
State in which hospitals are paid for services under section 1814(b)(3) 
shall adjust the payments to each subsection (d) hospital in the State 
that is not a meaningful EHR user (as defined in subsection (n)(3)) in 
a manner that is designed to result in an aggregate reduction in 
payments to hospitals in the State that is equivalent to the aggregate 
reduction that would have occurred if payments had been reduced to each 
subsection (d) hospital in the State in a manner comparable to the 
reduction under the previous provisions of this clause. The State shall 
report to the Secretary the methodology it will use to make the payment 
adjustment under the previous sentence.
    ``(IV) For purposes of this clause, the term `reporting period' 
means, with respect to a fiscal year, any period (or periods), with 
respect to the fiscal year, as specified by the Secretary.''.
    (c) Application to Certain HMO-Affiliated Eligible Hospitals.--
Section 1853 of the Social Security Act (42 U.S.C. 1395w-23), as 
amended by section 4311(c), is further amended by adding at the end the 
following new subsection:
    ``(m) Application of Eligible Hospital Incentives for Certain MA 
Organizations for Adoption and Meaningful Use of Certified EHR 
Technology.--
            ``(1) Application.--Subject to paragraphs (3) and (4), in 
        the case of a qualifying MA organization, the provisions of 
        sections 1886(n) and 1886(b)(3)(B)(ix) shall apply with respect 
        to eligible hospitals described in paragraph (2) of the 
        organization which the organization attests under subsection 
        (l)(6) to be meaningful EHR users in a similar manner as they 
        apply to eligible hospitals under such sections. Incentive 
        payments under paragraph (3) shall be made to and payment 
        adjustments under paragraph (4) shall apply to such qualifying 
        organizations.
            ``(2) Eligible hospital described.--With respect to a 
        qualifying MA organization, an eligible hospital described in 
        this paragraph is an eligible hospital that is under common 
        corporate governance with such organization and serves 
        individuals enrolled under an MA plan offered by such 
        organization.
            ``(3) Eligible hospital incentive payments.--
                    ``(A) In general.--In applying section 1886(n)(2) 
                under paragraph (1), instead of the additional payment 
                amount under section 1886(n)(2), there shall be 
                substituted an amount determined by the Secretary to be 
                similar to the estimated amount in the aggregate that 
                would be payable if payment for services furnished by 
                such hospitals was payable under part A instead of this 
                part. In implementing the previous sentence, the 
                Secretary--
                            ``(i) shall, insofar as data to determine 
                        the discharge related amount under section 
                        1886(n)(2)(C) for an eligible hospital are not 
                        available to the Secretary, use such 
                        alternative data and methodology to estimate 
                        such discharge related amount as the Secretary 
                        determines appropriate; and
                            ``(ii) shall, insofar as data to determine 
                        the medicare share described in section 
                        1886(n)(2)(D) for an eligible hospital are not 
                        available to the Secretary, use such 
                        alternative data and methodology to estimate 
                        such share, which data and methodology may 
                        include use of the inpatient bed days (or 
                        discharges) with respect to an eligible 
                        hospital during the appropriate period which 
                        are attributable to both individuals for whom 
                        payment may be made under part A or individuals 
                        enrolled in an MA plan under a Medicare 
                        Advantage organization under this part as a 
                        proportion of the total number of patient-bed-
                        days (or discharges) with respect to such 
                        hospital during such period.
                    ``(B) Avoiding duplication of payments.--
                            ``(i) In general.--In the case of a 
                        hospital that for a payment year is an eligible 
                        hospital described in paragraph (2), is an 
                        eligible hospital under section 1886(n), and 
                        for which at least one-third of their 
                        discharges (or bed-days) of Medicare patients 
                        for the year are covered under part A, payment 
                        for the payment year shall be made only under 
                        section 1886(n) and not under this subsection.
                            ``(ii) Methods.--In the case of a hospital 
                        that is an eligible hospital described in 
                        paragraph (2) and also is eligible for an 
                        incentive payment under section 1886(n) but is 
                        not described in clause (i) for the same 
                        payment period, the Secretary shall develop a 
                        process--
                                    ``(I) to ensure that duplicate 
                                payments are not made with respect to 
                                an eligible hospital both under this 
                                subsection and under section 1886(n); 
                                and
                                    ``(II) to collect data from 
                                Medicare Advantage organizations to 
                                ensure against such duplicate payments.
            ``(4) Payment adjustment.--
                    ``(A) Subject to paragraph (3), in the case of a 
                qualifying MA organization (as defined in section 
                1853(l)(5)), if, according to the attestation of the 
                organization submitted under subsection (l)(6) for an 
                applicable period, one or more eligible hospitals (as 
                defined in section 1886(n)(6)(A)) that are under common 
                corporate governance with such organization and that 
                serve individuals enrolled under a plan offered by such 
                organization are not meaningful EHR users (as defined 
                in section 1886(n)(3)) with respect to a period, the 
                payment amount payable under this section for such 
                organization for such period shall be the percent 
                specified in subparagraph (B) for such period of the 
                payment amount otherwise provided under this section 
                for such period.
                    ``(B) Specified percent.--The percent specified 
                under this subparagraph for a year is 100 percent minus 
                a number of percentage points equal to the product of--
                            ``(i) the number of the percentage point 
                        reduction effected under section 
                        1886(b)(3)(B)(ix)(I) for the period; and
                            ``(ii) the Medicare hospital expenditure 
                        proportion specified in subparagraph (C) for 
                        the year.
                    ``(C) Medicare hospital expenditure proportion.--
                The Medicare hospital expenditure proportion under this 
                subparagraph for a year is the Secretary's estimate of 
                the proportion, of the expenditures under parts A and B 
                that are not attributable to this part, that are 
                attributable to expenditures for inpatient hospital 
                services.
                    ``(D) Application of payment adjustment.--In the 
                case that a qualifying MA organization attests that not 
                all eligible hospitals are meaningful EHR users with 
                respect to an applicable period, the Secretary shall 
                apply the payment adjustment under this paragraph based 
                on a methodology specified by the Secretary, taking 
                into account the proportion of such eligible hospitals, 
                or discharges from such hospitals, that are not 
                meaningful EHR users for such period.''.
    (d) Conforming Amendments.--
            (1) Section 1814(b) of the Social Security Act (42 U.S.C. 
        1395f(b)) is amended--
                    (A) in paragraph (3), in the matter preceding 
                subparagraph (A), by inserting ``, subject to section 
                1886(d)(3)(B)(ix)(III),'' after ``then''; and
                    (B) by adding at the end the following: ``For 
                purposes of applying paragraph (3), there shall be 
                taken into account incentive payments, and payment 
                adjustments under subsection (b)(3)(B)(ix) or (n) of 
                section 1886.''.
            (2) Section 1851(i)(1) of the Social Security Act (42 
        U.S.C. 1395w-21(i)(1)) is amended by striking ``and 
        1886(h)(3)(D)'' and inserting ``1886(h)(3)(D), and 1853(m)''.
            (3) Section 1853 of the Social Security Act (42 U.S.C. 
        1395w-23), as amended by section 4311(d)(1), is amended--
                    (A) in subsection (c)--
                            (i) in paragraph (1)(D)(i), by striking 
                        ``1848(o)'' and inserting ``, 1848(o), and 
                        1886(n)''; and
                            (ii) in paragraph (6)(A), by inserting 
                        ``and subsections (b)(3)(B)(ix) and (n) of 
                        section 1886'' after ``section 1848''; and
                    (B) in subsection (f), by inserting ``and 
                subsection (m)'' after ``under subsection (l)''.

SEC. 4313. TREATMENT OF PAYMENTS AND SAVINGS; IMPLEMENTATION FUNDING.

    (a) Premium Hold Harmless.--
            (1) In general.--Section 1839(a)(1) of the Social Security 
        Act (42 U.S.C. 1395r(a)(1)) is amended by adding at the end the 
        following: ``In applying this paragraph there shall not be 
        taken into account additional payments under section 1848(o) 
        and section 1853(l)(3) and the Government contribution under 
        section 1844(a)(3).''.
            (2) Payment.--Section 1844(a) of such Act (42 U.S.C. 
        1395w(a)) is amended--
                    (A) in paragraph (2), by striking the period at the 
                end and inserting ``; plus''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(3) a Government contribution equal to the amount of 
        payment incentives payable under sections 1848(o) and 
        1853(l)(3).''.
    (b) Medicare Improvement Fund.--Section 1898 of the Social Security 
Act (42 U.S.C. 1395iii), as added by section 7002(a) of the 
Supplemental Appropriations Act, 2008 (Public Law 110-252) and as 
amended by section 188(a)(2) of the Medicare Improvements for Patients 
and Providers Act of 2008 (Public Law 110-275; 122 Stat. 2589) and by 
section 6 of the QI Program Supplemental Funding Act of 2008, is 
amended--
            (1) in subsection (a)--
                    (A) by inserting ``medicare'' before ``fee-for-
                service''; and
                    (B) by inserting before the period at the end the 
                following: ``including, but not limited to, an increase 
                in the conversion factor under section 1848(d) to 
                address, in whole or in part, any projected shortfall 
                in the conversion factor for 2014 relative to the 
                conversion factor for 2008 and adjustments to payments 
                for items and services furnished by providers of 
                services and suppliers under such original medicare 
                fee-for-service program''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``during fiscal 
                year 2014,'' and all that follows and inserting the 
                following: ``during--
                    ``(A) fiscal year 2014, $22,290,000,000; and
                    ``(B) fiscal year 2020 and each subsequent fiscal 
                year, the Secretary's estimate, as of July 1 of the 
                fiscal year, of the aggregate reduction in expenditures 
                under this title during the preceding fiscal year 
                directly resulting from the reduction in payment 
                amounts under sections 1848(a)(7), 1853(l)(4), 
                1853(m)(4), and 1886(b)(3)(B)(ix).''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(4) No effect on payments in subsequent years.--In the 
        case that expenditures from the Fund are applied to, or 
        otherwise affect, a payment rate for an item or service under 
        this title for a year, the payment rate for such item or 
        service shall be computed for a subsequent year as if such 
        application or effect had never occurred.''.
    (c) Implementation Funding.--In addition to funds otherwise 
available, out of any funds in the Treasury not otherwise appropriated, 
there are appropriated to the Secretary of Health and Human Services 
for the Center for Medicare & Medicaid Services Program Management 
Account, $60,000,000 for each of fiscal years 2009 through 2015 and 
$30,000,000 for each succeeding fiscal year through fiscal year 2019, 
which shall be available for purposes of carrying out the provisions of 
(and amendments made by) this part. Amounts appropriated under this 
subsection for a fiscal year shall be available until expended.

SEC. 4314. STUDY ON APPLICATION OF EHR PAYMENT INCENTIVES FOR PROVIDERS 
              NOT RECEIVING OTHER INCENTIVE PAYMENTS.

    (a) Study.--
            (1) In general.--The Secretary of Health and Human Services 
        shall conduct a study to determine the extent to which and 
        manner in which payment incentives (such as under title XVIII 
        or XIX of the Social Security Act) and other funding for 
        purposes of implementing and using certified EHR technology (as 
        defined in section 3000 of the Public Health Service Act) 
        should be made available to health care providers who are 
        receiving minimal or no payment incentives or other funding 
        under this Act, under title XVIII or XIX of the Social Security 
        Act, or otherwise, for such purposes.
            (2) Details of study.--Such study shall include an 
        examination of--
                    (A) the adoption rates of certified EHR technology 
                by such health care providers;
                    (B) the clinical utility of such technology by such 
                health care providers;
                    (C) whether the services furnished by such health 
                care providers are appropriate for or would benefit 
                from the use of such technology;
                    (D) the extent to which such health care providers 
                work in settings that might otherwise receive an 
                incentive payment or other funding under this Act, 
                title XVIII or XIX of the Social Security Act, or 
                otherwise;
                    (E) the potential costs and the potential benefits 
                of making payment incentives and other funding 
                available to such health care providers; and
                    (F) any other issues the Secretary deems to be 
                appropriate.
    (b) Report.--Not later than June 30, 2010, the Secretary shall 
submit to Congress a report on the findings and conclusions of the 
study conducted under subsection (a).

                       PART III--MEDICAID FUNDING

SEC. 4321. MEDICAID PROVIDER HIT ADOPTION AND OPERATION PAYMENTS; 
              IMPLEMENTATION FUNDING.

    (a) In General.--Section 1903 of the Social Security Act (42 U.S.C. 
1396b) is amended--
            (1) in subsection (a)(3)--
                    (A) by striking ``and'' at the end of subparagraph 
                (D);
                    (B) by striking ``plus'' at the end of subparagraph 
                (E) and inserting ``and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(F)(i) 100 percent of so much of the sums 
                expended during such quarter as are attributable to 
                payments for certified EHR technology (and support 
                services including maintenance and training that is 
                for, or is necessary for the adoption and operation of, 
                such technology) by Medicaid providers described in 
                subsection (t)(1); and
                    ``(ii) 90 percent of so much of the sums expended 
                during such quarter as are attributable to payments for 
                reasonable administrative expenses related to the 
                administration of payments described in clause (i) if 
                the State meets the condition described in subsection 
                (t)(9); plus''; and
            (2) by inserting after subsection (s) the following new 
        subsection:
    ``(t)(1)(A) For purposes of subsection (a)(3)(F), the payments for 
certified EHR technology (and support services including maintenance 
that is for, or is necessary for the operation of, such technology) by 
Medicaid providers described in this paragraph are payments made by the 
State in accordance with this subsection of the applicable percent (as 
specified in subparagraph (B)) of the net allowable costs of Medicaid 
providers (as defined in paragraph (2)) for such technology (and 
support services).
    ``(B) For purposes of subparagraph (A), the applicable percent is--
            ``(i) in the case of a Medicaid provider described in 
        paragraph (2)(A), 85 percent; and
            ``(ii) in the case of a Medicaid provider described in 
        paragraph (2)(B), 100 percent.
    ``(2) In this subsection and subsection (a)(3)(F), the term 
`Medicaid provider' means--
            ``(A) an eligible professional (as defined in paragraph 
        (3)(B)) who is not hospital-based and has at least 30 percent 
        of the professional's patient volume (as estimated in 
        accordance with standards established by the Secretary) 
        attributable to individuals who are receiving medical 
        assistance under this title; and
            ``(B)(i) a children's hospital, (ii) an acute-care hospital 
        that is not described in clause (i) and that has at least 10 
        percent of the hospital's patient volume (as estimated in 
        accordance with standards established by the Secretary) 
        attributable to individuals who are receiving medical 
        assistance under this title, or (iii) a Federally-qualified 
        health center or rural health clinic that has at least 30 
        percent of the center's or clinic's patient volume (as 
        estimated in accordance with standards established by the 
        Secretary) attributable to individuals who are receiving 
        medical assistance under this title.
An eligible professional shall not qualify as a Medicaid provider under 
this subsection unless the eligible professional has waived, in a 
manner specified by the Secretary, any right to payment under section 
1848(o) with respect to the adoption or support of certified EHR 
technology by the professional. In applying clauses (ii) and (iii) of 
subparagraph (B), the standards established by the Secretary for 
patient volume shall include individuals enrolled in a Medicaid managed 
care plan (under section 1903(m) or section 1932).
    ``(3) In this subsection and subsection (a)(3)(F):
            ``(A) The term `certified EHR technology' means a qualified 
        electronic health record (as defined in 3000(13) of the Public 
        Health Service Act) that is certified pursuant to section 
        3001(c)(5) of such Act as meeting standards adopted under 
        section 3004 of such Act that are applicable to the type of 
        record involved (as determined by the Secretary, such as an 
        ambulatory electronic health record for office-based physicians 
        or an inpatient hospital electronic health record for 
        hospitals).
            ``(B) The term `eligible professional' means a physician as 
        defined in paragraphs (1) and (2) of section 1861(r), and 
        includes a certified nurse mid-wife and a nurse practitioner.
            ``(C) The term `hospital-based' means, with respect to an 
        eligible professional, a professional (such as a pathologist, 
        anesthesiologist, or emergency physician) who furnishes 
        substantially all of the individual's professional services in 
        a hospital setting (whether inpatient or outpatient) and 
        through the use of the facilities and equipment, including 
        computer equipment, of the hospital.
    ``(4)(A) The term `allowable costs' means, with respect to 
certified EHR technology of a Medicaid provider, costs of such 
technology (and support services including maintenance and training 
that is for, or is necessary for the adoption and operation of, such 
technology) as determined by the Secretary to be reasonable.
    ``(B) The term `net allowable costs' means allowable costs reduced 
by any payment that is made to the Medicaid provider involved from any 
other source that is directly attributable to payment for certified EHR 
technology or services described in subparagraph (A).
    ``(C) In no case shall--
            ``(i) the aggregate allowable costs under this subsection 
        (covering one or more years) with respect to a Medicaid 
        provider described in paragraph (2)(A) for purchase and initial 
        implementation of certified EHR technology (and services 
        described in subparagraph (A)) exceed $25,000 or include costs 
        over a period of longer than 5 years;
            ``(ii) for costs not described in clause (i) relating to 
        the operation, maintenance, or use of certified EHR technology, 
        the annual allowable costs under this subsection with respect 
        to such a Medicaid provider for costs not described in clause 
        (i) for any year exceed $10,000;
            ``(iii) payment described in paragraph (1) for costs 
        described in clause (ii) be made with respect to such a 
        Medicaid provider over a period of more than 5 years;
            ``(iv) the aggregate allowable costs under this subsection 
        with respect to such a Medicaid provider for all costs exceed 
        $75,000; or
            ``(v) the allowable costs, whether for purchase and initial 
        implementation, maintenance, or otherwise, for a Medicaid 
        provider described in paragraph (2)(B)(iii) exceed such 
        aggregate or annual limitation as the Secretary shall 
        establish, based on an amount determined by the Secretary as 
        being adequate to adopt and maintain certified EHR technology, 
        consistent with paragraph (6).
    ``(5) Payments described in paragraph (1) are not in accordance 
with this subsection unless the following requirements are met:
            ``(A) The State provides assurances satisfactory to the 
        Secretary that amounts received under subsection (a)(3)(F) with 
        respect to costs of a Medicaid provider are paid directly to 
        such provider without any deduction or rebate.
            ``(B) Such Medicaid provider is responsible for payment of 
        the costs described in such paragraph that are not provided 
        under this title.
            ``(C) With respect to payments to such Medicaid provider 
        for costs other than costs related to the initial adoption of 
        certified EHR technology, the Medicaid provider demonstrates 
        meaningful use of certified EHR technology through a means that 
        is approved by the State and acceptable to the Secretary, and 
        that may be based upon the methodologies applied under section 
        1848(o) or 1886(n).
            ``(D) To the extent specified by the Secretary, the 
        certified EHR technology is compatible with State or Federal 
        administrative management systems.
    ``(6)(A) In no case shall the payments described in paragraph (1), 
with respect to a hospital, exceed in the aggregate the product of--
            ``(i) the overall hospital EHR amount for the hospital 
        computed under subparagraph (B); and
            ``(ii) the Medicaid share for such hospital computed under 
        subparagraph (C).
    ``(B) For purposes of this paragraph, the overall hospital EHR 
amount, with respect to a hospital, is the sum of the applicable 
amounts specified in section 1886(n)(2)(A) for such hospital for the 
first 4 payment years (as estimated by the Secretary) determined as if 
the Medicare share specified in clause (ii) of such section were 1. The 
Secretary shall publish in the Federal Register the overall hospital 
EHR amount for each hospital eligible for payments under this 
subsection. In computing amounts under paragraph 1886(n)(2)(C) for 
payment years after the first payment year, the Secretary shall assume 
that in subsequent payment years discharges increase at the average 
annual rate of growth of the most recent 3 years for which discharge 
data are available per year.
    ``(C) The Medicaid share computed under this subparagraph, for a 
hospital for a period specified by the Secretary, shall be calculated 
in the same manner as the Medicare share under section 1886(n)(2)(D) 
for such a hospital and period, except that there shall be substituted 
for the numerator under clause (i) of such section the amount that is 
equal to the number of inpatient-bed-days (as established by the 
Secretary) which are attributable to individuals who are receiving 
medical assistance under this title and who are not described in 
section 1886(n)(2)(D)(i). In computing inpatient-bed-days under the 
previous sentence, the Secretary shall take into account inpatient-bed-
days attributable to inpatient-bed-days that are paid for individuals 
enrolled in a Medicaid managed care plan (under section 1903(m) or 
section 1932).
    ``(7) With respect to health care providers other than hospitals, 
the Secretary shall ensure coordination of the different programs for 
payment of such health care providers for adoption or use of health 
information technology (including certified EHR technology), as well as 
payments for such health care providers provided under this title or 
title XVIII, to assure no duplication of funding.
    ``(8) In carrying out paragraph (5)(C), the State and Secretary 
shall seek, to the maximum extent practicable, to avoid duplicative 
requirements from Federal and State Governments to demonstrate 
meaningful use of certified EHR technology under this title and title 
XVIII. In doing so, the Secretary may deem satisfaction of requirements 
for such meaningful use for a payment year under title XVIII to be 
sufficient to qualify as meaningful use under this subsection. The 
Secretary may also specify the reporting periods under this subsection 
in order to carry out this paragraph.
    ``(9) In order to be provided Federal financial participation under 
subsection (a)(3)(F)(ii), a State must demonstrate to the satisfaction 
of the Secretary, that the State--
            ``(A) is using the funds provided for the purposes of 
        administering payments under this subsection, including 
        tracking of meaningful use by Medicaid providers;
            ``(B) is conducting adequate oversight of the program under 
        this subsection, including routine tracking of meaningful use 
        attestations and reporting mechanisms; and
            ``(C) is pursuing initiatives to encourage the adoption of 
        certified EHR technology to promote health care quality and the 
        exchange of health care information under this title, subject 
        to applicable laws and regulations governing such exchange.
    ``(10) The Secretary shall periodically submit reports to the 
Committee on Energy and Commerce of the House of Representatives and 
the Committee on Finance of the Senate on status, progress, and 
oversight of payments under paragraph (1).''.
    (b) Implementation Funding.--In addition to funds otherwise 
available, out of any funds in the Treasury not otherwise appropriated, 
there are appropriated to the Secretary of Health and Human Services 
for the Center for Medicare & Medicaid Services Program Management 
Account, $40,000,000 for each of fiscal years 2009 through 2015 and 
$20,000,000 for each succeeding fiscal year through fiscal year 2019, 
which shall be available for purposes of carrying out the provisions of 
(and the amendments made by) this part. Amounts appropriated under this 
subsection for a fiscal year shall be available until expended.

SEC. 4322. MEDICAID NURSING FACILITY GRANT PROGRAM.

    (a) In General.--The Secretary shall establish a grant program to 
enhance the meaningful use of certified electronic health records in 
nursing facilities. In establishing such program, the Secretary shall 
use payment incentives for meaningful use of certified EHR technology, 
similar to those specified in sections 4311, 4312, and 4321, as 
appropriate. For the purpose of such incentives, the Secretary shall 
define meaningful use in a manner so as to be consistent with such 
sections to the extent practicable. The Secretary shall award funds to 
not more than 10 States to carry out activities under this section.
    (b) Activities.--The Secretary shall require a State participating 
in the grant program to--
            (1) provide payment incentives to nursing facilities 
        contingent on the demonstration of meaningful use of certified 
        electronic health records;
            (2) require participating nursing facilities to engage in 
        programs to improve the quality and coordination of care 
        through the use of certified EHR technology, including for 
        persons who are repeatedly admitted to acute care hospitals 
        from the nursing facility and persons who receive services 
        across multiple medical and social services providers 
        (including facility and community-based providers); and
            (3) provide for training of appropriate personnel in the 
        use of certified electronic health records.
    (c) Targeting.--The Secretary shall require a State participating 
in the grant program to target nursing facilities with a significant 
percentage (but not less than the average in the State) of the 
facility's patient volume (as estimated in accordance with standards 
established by the Secretary) attributable to individuals who are 
receiving medical assistance under title XIX of the Social Security 
Act.
    (d) Priority.--In making grants under this section, the Secretary 
shall give priority to States with a high proportion of total national 
nursing facility days paid under title XIX of the Social Security Act.
    (e) Limitations on Use of Funds.--A State may not make payments to 
a nursing facility in excess of 90 percent of the costs of such nursing 
facility for the adoption and operation of certified EHR technology.
    (f) Application.--No grant may be made to a State under this 
section unless the State submits an application to the Secretary in a 
form and manner specified by the Secretary.
    (g) Report.--Not later than the end of the 3-year period beginning 
on the date that grants under this section are first awarded, the 
Secretary shall submit a report to Congress on the activities under 
this grant program and the effect of this program on quality and 
coordination of care under title XIX of the Social Security Act.
    (h) Appropriation.--Out of any money in the Treasury not otherwise 
appropriated, there is appropriated to the Secretary of Health and 
Human Services to carry out this section $600,000,000, to remain 
available until expended.

                          Subtitle D--Privacy

SEC. 4400. DEFINITIONS.

    In this subtitle, except as specified otherwise:
            (1) Breach.--The term ``breach'' means the unauthorized 
        acquisition, access, use, or disclosure of protected health 
        information which compromises the security, privacy, or 
        integrity of protected health information maintained by or on 
        behalf of a person. Such term does not include any 
        unintentional acquisition, access, use, or disclosure of such 
        information by an employee or agent of the covered entity or 
        business associate involved if such acquisition, access, use, 
        or disclosure, respectively, was made in good faith and within 
        the course and scope of the employment or other contractual 
        relationship of such employee or agent, respectively, with the 
        covered entity or business associate and if such information is 
        not further acquired, accessed, used, or disclosed by such 
        employee or agent.
            (2) Business associate.--The term ``business associate'' 
        has the meaning given such term in section 160.103 of title 45, 
        Code of Federal Regulations.
            (3) Covered entity.--The term ``covered entity'' has the 
        meaning given such term in section 160.103 of title 45, Code of 
        Federal Regulations.
            (4) Disclose.--The terms ``disclose'' and ``disclosure'' 
        have the meaning given the term ``disclosure'' in section 
        160.103 of title 45, Code of Federal Regulations.
            (5) Electronic health record.--The term ``electronic health 
        record'' means an electronic record of health-related 
        information on an individual that is created, gathered, 
        managed, and consulted by authorized health care clinicians and 
        staff.
            (6) Health care operations.--The term ``health care 
        operation'' has the meaning given such term in section 164.501 
        of title 45, Code of Federal Regulations.
            (7) Health care provider.--The term ``health care 
        provider'' has the meaning given such term in section 160.103 
        of title 45, Code of Federal Regulations.
            (8) Health plan.--The term ``health plan'' has the meaning 
        given such term in section 1171(5) of the Social Security Act.
            (9) National coordinator.--The term ``National 
        Coordinator'' means the head of the Office of the National 
        Coordinator for Health Information Technology established under 
        section 3001(a) of the Public Health Service Act, as added by 
        section 4101.
            (10) Payment.--The term ``payment'' has the meaning given 
        such term in section 164.501 of title 45, Code of Federal 
        Regulations.
            (11) Personal health record.--The term ``personal health 
        record'' means an electronic record of individually 
        identifiable health information on an individual that can be 
        drawn from multiple sources and that is managed, shared, and 
        controlled by or for the individual.
            (12) Protected health information.--The term ``protected 
        health information'' has the meaning given such term in section 
        160.103 of title 45, Code of Federal Regulations.
            (13) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (14) Security.--The term ``security'' has the meaning given 
        such term in section 164.304 of title 45, Code of Federal 
        Regulations.
            (15) State.--The term ``State'' means each of the several 
        States, the District of Columbia, Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, and the Northern Mariana 
        Islands.
            (16) Treatment.--The term ``treatment'' has the meaning 
        given such term in section 164.501 of title 45, Code of Federal 
        Regulations.
            (17) Use.--The term ``use'' has the meaning given such term 
        in section 160.103 of title 45, Code of Federal Regulations.
            (18) Vendor of personal health records.--The term ``vendor 
        of personal health records'' means an entity, other than a 
        covered entity (as defined in paragraph (3)), that offers or 
        maintains a personal health record.

      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.

    (a) Application of Security Provisions.--Sections 164.308, 164.310, 
164.312, and 164.316 of title 45, Code of Federal Regulations, shall 
apply to a business associate of a covered entity in the same manner 
that such sections apply to the covered entity. The additional 
requirements of this title that relate to security and that are made 
applicable with respect to covered entities shall also be applicable to 
such a business associate and shall be incorporated into the business 
associate agreement between the business associate and the covered 
entity.
    (b) Application of Civil and Criminal Penalties.--In the case of a 
business associate that violates any security provision specified in 
subsection (a), sections 1176 and 1177 of the Social Security Act (42 
U.S.C. 1320d-5, 1320d-6) shall apply to the business associate with 
respect to such violation in the same manner such sections apply to a 
covered entity that violates such security provision.
    (c) Annual Guidance.--For the first year beginning after the date 
of the enactment of this Act and annually thereafter, the Secretary of 
Health and Human Services shall, in consultation with industry 
stakeholders, annually issue guidance on the most effective and 
appropriate technical safeguards for use in carrying out the sections 
referred to in subsection (a) and the security standards in subpart C 
of part 164 of title 45, Code of Federal Regulations, including the use 
of standards developed under section 3002(b)(2)(B)(vi) of the Public 
Health Service Act, as added by section 4101, as such provisions are in 
effect as of the date before the enactment of this Act.

SEC. 4402. NOTIFICATION IN THE CASE OF BREACH.

    (a) In General.--A covered entity that accesses, maintains, 
retains, modifies, records, stores, destroys, or otherwise holds, uses, 
or discloses unsecured protected health information (as defined in 
subsection (h)(1)) shall, in the case of a breach of such information 
that is discovered by the covered entity, notify each individual whose 
unsecured protected health information has been, or is reasonably 
believed by the covered entity to have been, accessed, acquired, or 
disclosed as a result of such breach.
    (b) Notification of Covered Entity by Business Associate.--A 
business associate of a covered entity that accesses, maintains, 
retains, modifies, records, stores, destroys, or otherwise holds, uses, 
or discloses unsecured protected health information shall, following 
the discovery of a breach of such information, notify the covered 
entity of such breach. Such notice shall include the identification of 
each individual whose unsecured protected health information has been, 
or is reasonably believed by the business associate to have been, 
accessed, acquired, or disclosed during such breach.
    (c) Breaches Treated as Discovered.--For purposes of this section, 
a breach shall be treated as discovered by a covered entity or by a 
business associate as of the first day on which such breach is known to 
such entity or associate, respectively, (including any person, other 
than the individual committing the breach, that is an employee, 
officer, or other agent of such entity or associate, respectively) or 
should reasonably have been known to such entity or associate (or 
person) to have occurred.
    (d) Timeliness of Notification.--
            (1) In general.--Subject to subsection (g), all 
        notifications required under this section shall be made without 
        unreasonable delay and in no case later than 60 calendar days 
        after the discovery of a breach by the covered entity involved 
        (or business associate involved in the case of a notification 
        required under subsection (b)).
            (2) Burden of proof.--The covered entity involved (or 
        business associate involved in the case of a notification 
        required under subsection (b)), shall have the burden of 
        demonstrating that all notifications were made as required 
        under this part, including evidence demonstrating the necessity 
        of any delay.
    (e) Methods of Notice.--
            (1) Individual notice.--Notice required under this section 
        to be provided to an individual, with respect to a breach, 
        shall be provided promptly and in the following form:
                    (A) Written notification by first-class mail to the 
                individual (or the next of kin of the individual if the 
                individual is deceased) at the last known address of 
                the individual or the next of kin, respectively, or, if 
                specified as a preference by the individual, by 
                electronic mail. The notification may be provided in 
                one or more mailings as information is available.
                    (B) In the case in which there is insufficient, or 
                out-of-date contact information (including a phone 
                number, email address, or any other form of appropriate 
                communication) that precludes direct written (or, if 
                specified by the individual under subparagraph (A), 
                electronic) notification to the individual, a 
                substitute form of notice shall be provided, including, 
                in the case that there are 10 or more individuals for 
                which there is insufficient or out-of-date contact 
                information, a conspicuous posting for a period 
                determined by the Secretary on the home page of the Web 
                site of the covered entity involved or notice in major 
                print or broadcast media, including major media in 
                geographic areas where the individuals affected by the 
                breach likely reside. Such a notice in media or web 
                posting will include a toll-free phone number where an 
                individual can learn whether or not the individual's 
                unsecured protected health information is possibly 
                included in the breach.
                    (C) In any case deemed by the covered entity 
                involved to require urgency because of possible 
                imminent misuse of unsecured protected health 
                information, the covered entity, in addition to notice 
                provided under subparagraph (A), may provide 
                information to individuals by telephone or other means, 
                as appropriate.
            (2) Media notice.--Notice shall be provided to prominent 
        media outlets serving a State or jurisdiction, following the 
        discovery of a breach described in subsection (a), if the 
        unsecured protected health information of more than 500 
        residents of such State or jurisdiction is, or is reasonably 
        believed to have been, accessed, acquired, or disclosed during 
        such breach.
            (3) Notice to secretary.--Notice shall be provided to the 
        Secretary by covered entities of unsecured protected health 
        information that has been acquired or disclosed in a breach. If 
        the breach was with respect to 500 or more individuals than 
        such notice must be provided immediately. If the breach was 
        with respect to less than 500 individuals, the covered entity 
        involved may maintain a log of any such breach occurring and 
        annually submit such a log to the Secretary documenting such 
        breaches occurring during the year involved.
            (4) Posting on hhs public website.--The Secretary shall 
        make available to the public on the Internet website of the 
        Department of Health and Human Services a list that identifies 
        each covered entity involved in a breach described in 
        subsection (a) in which the unsecured protected health 
        information of more than 500 individuals is acquired or 
        disclosed.
    (f) Content of Notification.--Regardless of the method by which 
notice is provided to individuals under this section, notice of a 
breach shall include, to the extent possible, the following:
            (1) A brief description of what happened, including the 
        date of the breach and the date of the discovery of the breach, 
        if known.
            (2) A description of the types of unsecured protected 
        health information that were involved in the breach (such as 
        full name, Social Security number, date of birth, home address, 
        account number, or disability code).
            (3) The steps individuals should take to protect themselves 
        from potential harm resulting from the breach.
            (4) A brief description of what the covered entity involved 
        is doing to investigate the breach, to mitigate losses, and to 
        protect against any further breaches.
            (5) Contact procedures for individuals to ask questions or 
        learn additional information, which shall include a toll-free 
        telephone number, an e-mail address, Web site, or postal 
        address.
    (g) Delay of Notification Authorized for Law Enforcement 
Purposes.--If a law enforcement official determines that a 
notification, notice, or posting required under this section would 
impede a criminal investigation or cause damage to national security, 
such notification, notice, or posting shall be delayed in the same 
manner as provided under section 164.528(a)(2) of title 45, Code of 
Federal Regulations, in the case of a disclosure covered under such 
section.
    (h) Unsecured Protected Health Information.--
            (1) Definition.--
                    (A) In general.--Subject to subparagraph (B), for 
                purposes of this section, the term ``unsecured 
                protected health information'' means protected health 
                information that is not secured through the use of a 
                technology or methodology specified by the Secretary in 
                the guidance issued under paragraph (2).
                    (B) Exception in case timely guidance not issued.--
                In the case that the Secretary does not issue guidance 
                under paragraph (2) by the date specified in such 
                paragraph, for purposes of this section, the term 
                ``unsecured protected health information'' shall mean 
                protected health information that is not secured by a 
                technology standard that renders protected health 
                information unusable, unreadable, or indecipherable to 
                unauthorized individuals and is developed or endorsed 
                by a standards developing organization that is 
                accredited by the American National Standards 
                Institute.
            (2) Guidance.--For purposes of paragraph (1) and section 
        407(f)(3), not later than the date that is 60 days after the 
        date of the enactment of this Act, the Secretary shall, after 
        consultation with stakeholders, issue (and annually update) 
        guidance specifying the technologies and methodologies that 
        render protected health information unusable, unreadable, or 
        indecipherable to unauthorized individuals, including use of 
        standards developed under section 3002(b)(2)(B)(vi) of the 
        Public Health Service Act, as added by section 4101.
    (i) Report to Congress on Breaches.--
            (1) In general.--Not later than 12 months after the date of 
        the enactment of this Act and annually thereafter, the 
        Secretary shall prepare and submit to the Committee on Finance 
        and the Committee on Health, Education, Labor, and Pensions of 
        the Senate and the Committee on Ways and Means and the 
        Committee on Energy and Commerce of the House of 
        Representatives a report containing the information described 
        in paragraph (2) regarding breaches for which notice was 
        provided to the Secretary under subsection (e)(3).
            (2) Information.--The information described in this 
        paragraph regarding breaches specified in paragraph (1) shall 
        include--
                    (A) the number and nature of such breaches; and
                    (B) actions taken in response to such breaches.
    (j) Regulations; Effective Date.--To carry out this section, the 
Secretary of Health and Human Services shall promulgate interim final 
regulations by not later than the date that is 180 days after the date 
of the enactment of this title. The provisions of this section shall 
apply to breaches that are discovered on or after the date that is 30 
days after the date of publication of such interim final regulations.

SEC. 4403. EDUCATION ON HEALTH INFORMATION PRIVACY.

    (a) Regional Office Privacy Advisors.--Not later than 6 months 
after the date of the enactment of this Act, the Secretary shall 
designate an individual in each regional office of the Department of 
Health and Human Services to offer guidance and education to covered 
entities, business associates, and individuals on their rights and 
responsibilities related to Federal privacy and security requirements 
for protected health information.
    (b) Education Initiative on Uses of Health Information.--Not later 
than 12 months after the date of the enactment of this Act, the Office 
for Civil Rights within the Department of Health and Human Services 
shall develop and maintain a multi-faceted national education 
initiative to enhance public transparency regarding the uses of 
protected health information, including programs to educate individuals 
about the potential uses of their protected health information, the 
effects of such uses, and the rights of individuals with respect to 
such uses. Such programs shall be conducted in a variety of languages 
and present information in a clear and understandable manner.

SEC. 4404. APPLICATION OF PRIVACY PROVISIONS AND PENALTIES TO BUSINESS 
              ASSOCIATES OF COVERED ENTITIES.

    (a) Application of Contract Requirements.--In the case of a 
business associate of a covered entity that obtains or creates 
protected health information pursuant to a written contract (or other 
written arrangement) described in section 164.502(e)(2) of title 45, 
Code of Federal Regulations, with such covered entity, the business 
associate may use and disclose such protected health information only 
if such use or disclosure, respectively, is in compliance with each 
applicable requirement of section 164.504(e) of such title. The 
additional requirements of this subtitle that relate to privacy and 
that are made applicable with respect to covered entities shall also be 
applicable to such a business associate and shall be incorporated into 
the business associate agreement between the business associate and the 
covered entity.
    (b) Application of Knowledge Elements Associated With Contracts.--
Section 164.504(e)(1)(ii) of title 45, Code of Federal Regulations, 
shall apply to a business associate described in subsection (a), with 
respect to compliance with such subsection, in the same manner that 
such section applies to a covered entity, with respect to compliance 
with the standards in sections 164.502(e) and 164.504(e) of such title, 
except that in applying such section 164.504(e)(1)(ii) each reference 
to the business associate, with respect to a contract, shall be treated 
as a reference to the covered entity involved in such contract.
    (c) Application of Civil and Criminal Penalties.--In the case of a 
business associate that violates any provision of subsection (a) or 
(b), the provisions of sections 1176 and 1177 of the Social Security 
Act (42 U.S.C. 1320d-5, 1320d-6) shall apply to the business associate 
with respect to such violation in the same manner as such provisions 
apply to a person who violates a provision of part C of title XI of 
such Act.

SEC. 4405. RESTRICTIONS ON CERTAIN DISCLOSURES AND SALES OF HEALTH 
              INFORMATION; ACCOUNTING OF CERTAIN PROTECTED HEALTH 
              INFORMATION DISCLOSURES; ACCESS TO CERTAIN INFORMATION IN 
              ELECTRONIC FORMAT.

    (a) Requested Restrictions on Certain Disclosures of Health 
Information.--In the case that an individual requests under paragraph 
(a)(1)(i)(A) of section 164.522 of title 45, Code of Federal 
Regulations, that a covered entity restrict the disclosure of the 
protected health information of the individual, notwithstanding 
paragraph (a)(1)(ii) of such section, the covered entity must comply 
with the requested restriction if--
            (1) except as otherwise required by law, the disclosure is 
        to a health plan for purposes of carrying out payment or health 
        care operations (and is not for purposes of carrying out 
        treatment); and
            (2) the protected health information pertains solely to a 
        health care item or service for which the health care provider 
        involved has been paid out of pocket in full.
    (b) Disclosures Required To Be Limited to the Limited Data Set or 
the Minimum Necessary.--
            (1) In general.--
                    (A) In general.--Subject to subparagraph (B), a 
                covered entity shall be treated as being in compliance 
                with section 164.502(b)(1) of title 45, Code of Federal 
                Regulations, with respect to the use, disclosure, or 
                request of protected health information described in 
                such section, only if the covered entity limits such 
                protected health information, to the extent 
                practicable, to the limited data set (as defined in 
                section 164.514(e)(2) of such title) or, if needed by 
                such entity, to the minimum necessary to accomplish the 
                intended purpose of such use, disclosure, or request, 
                respectively.
                    (B) Guidance.--Not later than 18 months after the 
                date of the enactment of this section, the Secretary 
                shall issue guidance on what constitutes ``minimum 
                necessary'' for purposes of subpart E of part 164 of 
                title 45, Code of Federal Regulation. In issuing such 
                guidance the Secretary shall take into consideration 
                the guidance under section 4424(c).
                    (C) Sunset.--Subparagraph (A) shall not apply on 
                and after the effective date on which the Secretary 
                issues the guidance under subparagraph (B).
            (2) Determination of minimum necessary.--For purposes of 
        paragraph (1), in the case of the disclosure of protected 
        health information, the covered entity or business associate 
        disclosing such information shall determine what constitutes 
        the minimum necessary to accomplish the intended purpose of 
        such disclosure.
            (3) Application of exceptions.--The exceptions described in 
        section 164.502(b)(2) of title 45, Code of Federal Regulations, 
        shall apply to the requirement under paragraph (1) as of the 
        effective date described in section 4423 in the same manner 
        that such exceptions apply to section 164.502(b)(1) of such 
        title before such date.
            (4) Rule of construction.--Nothing in this subsection shall 
        be construed as affecting the use, disclosure, or request of 
        protected health information that has been de-identified.
    (c) Accounting of Certain Protected Health Information Disclosures 
Required if Covered Entity Uses Electronic Health Record.--
            (1) In general.--In applying section 164.528 of title 45, 
        Code of Federal Regulations, in the case that a covered entity 
        uses or maintains an electronic health record with respect to 
        protected health information--
                    (A) the exception under paragraph (a)(1)(i) of such 
                section shall not apply to disclosures through an 
                electronic health record made by such entity of such 
                information; and
                    (B) an individual shall have a right to receive an 
                accounting of disclosures described in such paragraph 
                of such information made by such covered entity during 
                only the three years prior to the date on which the 
                accounting is requested.
            (2) Regulations.--The Secretary shall promulgate 
        regulations on what information shall be collected about each 
        disclosure referred to in paragraph (1)(A) not later than 18 
        months after the date on which the Secretary adopts standards 
        on accounting for disclosure described in the section 
        3002(b)(2)(B)(iv) of the Public Health Service Act, as added by 
        section 4101. Such regulations shall only require such 
        information to be collected through an electronic health record 
        in a manner that takes into account the interests of 
        individuals in learning the circumstances under which their 
        protected health information is being disclosed and takes into 
        account the administrative burden of accounting for such 
        disclosures.
            (3) Construction.--Nothing in this subsection shall be 
        construed as requiring a covered entity to account for 
        disclosures of protected health information that are not made 
        by such covered entity or by a business associate acting on 
        behalf of the covered entity.
            (4) Effective date.--
                    (A) Current users of electronic records.--In the 
                case of a covered entity insofar as it acquired an 
                electronic health record as of January 1, 2009, 
                paragraph (1) shall apply to disclosures, with respect 
                to protected health information, made by the covered 
                entity from such a record on and after January 1, 2014.
                    (B) Others.--In the case of a covered entity 
                insofar as it acquires an electronic health record 
                after January 1, 2009, paragraph (1) shall apply to 
                disclosures, with respect to protected health 
                information, made by the covered entity from such 
                record on and after the later of the following:
                            (i) January 1, 2011; or
                            (ii) the date that it acquires an 
                        electronic health record.
    (d) Review of Health Care Operations.--Not later than 18 months 
after the date of the enactment of this title, the Secretary shall 
promulgate regulations to eliminate from the definition of health care 
operations under section 164.501 of title 45, Code of Federal 
Regulations, those activities that can reasonably and efficiently be 
conducted through the use of information that is de-identified (in 
accordance with the requirements of section 164.514(b) of such title) 
or that should require a valid authorization for use or disclosure. In 
promulgating such regulations, the Secretary may choose to narrow or 
clarify activities that the Secretary chooses to retain in the 
definition of health care operations and the Secretary shall take into 
account the report under section 424(d). In such regulations the 
Secretary shall specify the date on which such regulations shall apply 
to disclosures made by a covered entity, but in no case would such date 
be sooner than the date that is 24 months after the date of the 
enactment of this section.
    (e) Prohibition on Sale of Electronic Health Records or Protected 
Health Information.--
            (1) In general.--Except as provided in paragraph (2), a 
        covered entity or business associate shall not directly or 
        indirectly receive remuneration in exchange for any protected 
        health information of an individual unless the covered entity 
        obtained from the individual, in accordance with section 
        164.508 of title 45, Code of Federal Regulations, a valid 
        authorization that includes, in accordance with such section, a 
        specification of whether the protected health information can 
        be further exchanged for remuneration by the entity receiving 
        protected health information of that individual.
            (2) Exceptions.--Paragraph (1) shall not apply in the 
        following cases:
                    (A) The purpose of the exchange is for research or 
                public health activities (as described in sections 
                164.501, 164.512(i), and 164.512(b) of title 45, Code 
                of Federal Regulations) and the price charged reflects 
                the costs of preparation and transmittal of the data 
                for such purpose.
                    (B) The purpose of the exchange is for the 
                treatment of the individual and the price charges 
                reflects not more than the costs of preparation and 
                transmittal of the data for such purpose.
                    (C) The purpose of the exchange is the health care 
                operation specifically described in subparagraph (iv) 
                of paragraph (6) of the definition of health care 
                operations in section 164.501 of title 45, Code of 
                Federal Regulations.
                    (D) The purpose of the exchange is for remuneration 
                that is provided by a covered entity to a business 
                associate for activities involving the exchange of 
                protected health information that the business 
                associate undertakes on behalf of and at the specific 
                request of the covered entity pursuant to a business 
                associate agreement.
                    (E) The purpose of the exchange is to provide an 
                individual with a copy of the individual's protected 
                health information pursuant to section 164.524 of title 
                45, Code of Federal Regulations.
                    (F) The purpose of the exchange is otherwise 
                determined by the Secretary in regulations to be 
                similarly necessary and appropriate as the exceptions 
                provided in subparagraphs (A) through (E).
            (3) Regulations.--The Secretary shall promulgate 
        regulations to carry out paragraph (this subsection, including 
        exceptions described in paragraph (2), not later than 18 months 
        after the date of the enactment of this title.
            (4) Effective date.--Paragraph (1) shall apply to exchanges 
        occurring on or after the date that is 6 months after the date 
        of the promulgation of final regulations implementing this 
        subsection.
    (f) Access to Certain Information in Electronic Format.--In 
applying section 164.524 of title 45, Code of Federal Regulations, in 
the case that a covered entity uses or maintains an electronic health 
record with respect to protected health information of an individual--
            (1) the individual shall have a right to obtain from such 
        covered entity a copy of such information in an electronic 
        format; and
            (2) notwithstanding paragraph (c)(4) of such section, any 
        fee that the covered entity may impose for providing such 
        individual with a copy of such information (or a summary or 
        explanation of such information) if such copy (or summary or 
        explanation) is in an electronic form shall not be greater than 
        the entity's labor costs in responding to the request for the 
        copy (or summary or explanation).
    (g) Clarification.--Nothing in this subtitle shall constitute a 
waiver of any privilege otherwise applicable to an individual with 
respect to the protected health information of such individual.

SEC. 4406. CONDITIONS ON CERTAIN CONTACTS AS PART OF HEALTH CARE 
              OPERATIONS.

    (a) Marketing.--
            (1) In general.--A communication by a covered entity or 
        business associate that is about a product or service and that 
        encourages recipients of the communication to purchase or use 
        the product or service shall not be considered a health care 
        operation for purposes of subpart E of part 164 of title 45, 
        Code of Federal Regulations, unless the communication is made 
        as described in subparagraph (i), (ii), or (iii) of paragraph 
        (1) of the definition of marketing in section 164.501 of such 
        title.
            (2) Payment for certain communications.--A covered entity 
        or business associate may not receive direct or indirect 
        payment in exchange for making any communication described in 
        subparagraph (i), (ii), or (iii) of paragraph (1) of the 
        definition of marketing in section 164.501 of title 45, Code of 
        Federal Regulations, except--
                    (A) a business associate of a covered entity may 
                receive payment from the covered entity for making any 
                such communication on behalf of the covered entity that 
                is consistent with the written contract (or other 
                written arrangement) described in section 164.502(e)(2) 
                of such title between such business associate and 
                covered entity; or
                    (B) a covered entity may receive payment in 
                exchange for making any such communication if the 
                entity obtains from the recipient of the communication, 
                in accordance with section 164.508 of title 45, Code of 
                Federal Regulations, a valid authorization (as 
                described in paragraph (b) of such section) with 
                respect to such communication.
    (b) Fundraising.--Fundraising for the benefit of a covered entity 
shall not be considered a health care operation for purposes of section 
164.501 of title 45, Code of Federal Regulations.
    (c) Effective Date.--This section shall apply to contracting 
occurring on or after the effective date specified under section 4423.

SEC. 4407. TEMPORARY BREACH NOTIFICATION REQUIREMENT FOR VENDORS OF 
              PERSONAL HEALTH RECORDS AND OTHER NON-HIPAA COVERED 
              ENTITIES.

    (a) In General.--In accordance with subsection (c), each vendor of 
personal health records, following the discovery of a breach of 
security of unsecured PHR identifiable health information that is in a 
personal health record maintained or offered by such vendor, and each 
entity described in clause (ii) or (iii) of section 4424(b)(1)(A), 
following the discovery of a breach of security of such information 
that is obtained through a product or service provided by such entity, 
shall--
            (1) notify each individual who is a citizen or resident of 
        the United States whose unsecured PHR identifiable health 
        information was acquired by an unauthorized person as a result 
        of such a breach of security; and
            (2) notify the Federal Trade Commission.
    (b) Notification by Third Party Service Providers.--A third party 
service provider that provides services to a vendor of personal health 
records or to an entity described in clause (ii) or (iii) of section 
4424(b)(1)(A) in connection with the offering or maintenance of a 
personal health record or a related product or service and that 
accesses, maintains, retains, modifies, records, stores, destroys, or 
otherwise holds, uses, or discloses unsecured PHR identifiable health 
information in such a record as a result of such services shall, 
following the discovery of a breach of security of such information, 
notify such vendor or entity, respectively, of such breach. Such notice 
shall include the identification of each individual whose unsecured PHR 
identifiable health information has been, or is reasonably believed to 
have been, accessed, acquired, or disclosed during such breach.
    (c) Application of Requirements for Timeliness, Method, and Content 
of Notifications.--Subsections (c), (d), (e), and (f) of section 402 
shall apply to a notification required under subsection (a) and a 
vendor of personal health records, an entity described in subsection 
(a) and a third party service provider described in subsection (b), 
with respect to a breach of security under subsection (a) of unsecured 
PHR identifiable health information in such records maintained or 
offered by such vendor, in a manner specified by the Federal Trade 
Commission.
    (d) Notification of the Secretary.--Upon receipt of a notification 
of a breach of security under subsection (a)(2), the Federal Trade 
Commission shall notify the Secretary of such breach.
    (e) Enforcement.--A violation of subsection (a) or (b) shall be 
treated as an unfair and deceptive act or practice in violation of a 
regulation under section 18(a)(1)(B) of the Federal Trade Commission 
Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or 
practices.
    (f) Definitions.--For purposes of this section:
            (1) Breach of security.--The term ``breach of security'' 
        means, with respect to unsecured PHR identifiable health 
        information of an individual in a personal health record, 
        acquisition of such information without the authorization of 
        the individual.
            (2) PHR identifiable health information.--The term ``PHR 
        identifiable health information'' means individually 
        identifiable health information, as defined in section 1171(6) 
        of the Social Security Act (42 U.S.C. 1320d(6)), and includes, 
        with respect to an individual, information--
                    (A) that is provided by or on behalf of the 
                individual; and
                    (B) that identifies the individual or with respect 
                to which there is a reasonable basis to believe that 
                the information can be used to identify the individual.
            (3) Unsecured phr identifiable health information.--
                    (A) In general.--Subject to subparagraph (B), the 
                term ``unsecured PHR identifiable health information'' 
                means PHR identifiable health information that is not 
                protected through the use of a technology or 
                methodology specified by the Secretary in the guidance 
                issued under section 4402(h)(2).
                    (B) Exception in case timely guidance not issued.--
                In the case that the Secretary does not issue guidance 
                under section 4402(h)(2) by the date specified in such 
                section, for purposes of this section, the term 
                ``unsecured PHR identifiable health information'' shall 
                mean PHR identifiable health information that is not 
                secured by a technology standard that renders protected 
                health information unusable, unreadable, or 
                indecipherable to unauthorized individuals and that is 
                developed or endorsed by a standards developing 
                organization that is accredited by the American 
                National Standards Institute.
    (g) Regulations; Effective Date; Sunset.--
            (1) Regulations; effective date.--To carry out this 
        section, the Secretary of Health and Human Services shall 
        promulgate interim final regulations by not later than the date 
        that is 180 days after the date of the enactment of this 
        section. The provisions of this section shall apply to breaches 
        of security that are discovered on or after the date that is 30 
        days after the date of publication of such interim final 
        regulations.
            (2) Sunset.--The provisions of this section shall not apply 
        to breaches of security occurring on or after the earlier of 
        the following the dates:
                    (A) The date on which a standard relating to 
                requirements for entities that are not covered entities 
                that includes requirements relating to breach 
                notification has been promulgated by the Secretary.
                    (B) The date on which a standard relating to 
                requirements for entities that are not covered entities 
                that includes requirements relating to breach 
                notification has been promulgated by the Federal Trade 
                Commission and has taken effect.

SEC. 4408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CERTAIN ENTITIES.

    Each organization, with respect to a covered entity, that provides 
data transmission of protected health information to such entity (or 
its business associate) and that requires access on a routine basis to 
such protected health information, such as a Health Information 
Exchange Organization, Regional Health Information Organization, E-
prescribing Gateway, or each vendor that contracts with a covered 
entity to allow that covered entity to offer a personal health record 
to patients as part of its electronic health record, is required to 
enter into a written contract (or other written arrangement) described 
in section 164.502(e)(2) of title 45, Code of Federal Regulations and a 
written contract (or other arrangement) described in section 164.308(b) 
of such title, with such entity and shall be treated as a business 
associate of the covered entity for purposes of the provisions of this 
subtitle and subparts C and E of part 164 of title 45, Code of Federal 
Regulations, as such provisions are in effect as of the date of 
enactment of this title.

SEC. 4409. CLARIFICATION OF APPLICATION OF WRONGFUL DISCLOSURES 
              CRIMINAL PENALTIES.

    Section 1177(a) of the Social Security Act (42 U.S.C. 1320d-6(a)) 
is amended by adding at the end the following new sentence: ``For 
purposes of the previous sentence, a person (including an employee or 
other individual) shall be considered to have obtained or disclosed 
individually identifiable health information in violation of this part 
if the information is maintained by a covered entity (as defined in the 
HIPAA privacy regulation described in section 1180(b)(3)) and the 
individual obtained or disclosed such information without 
authorization.''.

SEC. 4410. IMPROVED ENFORCEMENT.

    (a) In General.--Section 1176 of the Social Security Act (42 U.S.C. 
1320d-5) is amended--
            (1) in subsection (b)(1), by striking ``the act constitutes 
        an offense punishable under section 1177'' and inserting ``a 
        penalty has been imposed under section 1177 with respect to 
        such act''; and
            (2) by adding at the end the following new subsection:
    ``(c) Noncompliance Due to Willful Neglect.--
            ``(1) In general.--A violation of a provision of this part 
        due to willful neglect is a violation for which the Secretary 
        is required to impose a penalty under subsection (a)(1).
            ``(2) Required investigation.--For purposes of paragraph 
        (1), the Secretary shall formally investigate any complaint of 
        a violation of a provision of this part if a preliminary 
        investigation of the facts of the complaint indicate such a 
        possible violation due to willful neglect.''.
    (b) Effective Date; Regulations.--
            (1) The amendments made by subsection (a) shall apply to 
        penalties imposed on or after the date that is 24 months after 
        the date of the enactment of this title.
            (2) Not later than 18 months after the date of the 
        enactment of this title, the Secretary of Health and Human 
        Services shall promulgate regulations to implement such 
        amendments.
    (c) Distribution of Certain Civil Monetary Penalties Collected.--
            (1) In general.--Subject to the regulation promulgated 
        pursuant to paragraph (3), any civil monetary penalty or 
        monetary settlement collected with respect to an offense 
        punishable under this subtitle or section 1176 of the Social 
        Security Act (42 U.S.C. 1320d-5) insofar as such section 
        relates to privacy or security shall be transferred to the 
        Office of Civil Rights of the Department of Health and Human 
        Services to be used for purposes of enforcing the provisions of 
        this subtitle and subparts C and E of part 164 of title 45, 
        Code of Federal Regulations, as such provisions are in effect 
        as of the date of enactment of this Act.
            (2) GAO report.--Not later than 18 months after the date of 
        the enactment of this title, the Comptroller General shall 
        submit to the Secretary a report including recommendations for 
        a methodology under which an individual who is harmed by an act 
        that constitutes an offense referred to in paragraph (1) may 
        receive a percentage of any civil monetary penalty or monetary 
        settlement collected with respect to such offense.
            (3) Establishment of methodology to distribute percentage 
        of cmps collected to harmed individuals.--Not later than 3 
        years after the date of the enactment of this title, the 
        Secretary shall establish by regulation and based on the 
        recommendations submitted under paragraph (2), a methodology 
        under which an individual who is harmed by an act that 
        constitutes an offense referred to in paragraph (1) may receive 
        a percentage of any civil monetary penalty or monetary 
        settlement collected with respect to such offense.
            (4) Application of methodology.--The methodology under 
        paragraph (3) shall be applied with respect to civil monetary 
        penalties or monetary settlements imposed on or after the 
        effective date of the regulation.
    (d) Tiered Increase in Amount of Civil Monetary Penalties.--
            (1) In general.--Section 1176(a)(1) of the Social Security 
        Act (42 U.S.C. 1320d-5(a)(1)) is amended by striking ``who 
        violates a provision of this part a penalty of not more than'' 
        and all that follows and inserting the following: ``who 
        violates a provision of this part--
                    ``(A) in the case of a violation of such provision 
                in which it is established that the person did not know 
                (and by exercising reasonable diligence would not have 
                known) that such person violated such provision, a 
                penalty for each such violation of an amount that is at 
                least the amount described in paragraph (3)(A) but not 
                to exceed the amount described in paragraph (3)(D);
                    ``(B) in the case of a violation of such provision 
                in which it is established that the violation was due 
                to reasonable cause and not to willful neglect, a 
                penalty for each such violation of an amount that is at 
                least the amount described in paragraph (3)(B) but not 
                to exceed the amount described in paragraph (3)(D); and
                    ``(C) in the case of a violation of such provision 
                in which it is established that the violation was due 
                to willful neglect--
                            ``(i) if the violation is corrected as 
                        described in subsection (b)(3)(A), a penalty in 
                        an amount that is at least the amount described 
                        in paragraph (3)(C) but not to exceed the 
                        amount described in paragraph (3)(D); and
                            ``(ii) if the violation is not corrected as 
                        described in such subsection, a penalty in an 
                        amount that is at least the amount described in 
                        paragraph (3)(D).
                In determining the amount of a penalty under this 
                section for a violation, the Secretary shall base such 
                determination on the nature and extent of the violation 
                and the nature and extent of the harm resulting from 
                such violation.''.
            (2) Tiers of penalties described.--Section 1176(a) of such 
        Act (42 U.S.C. 1320d-5(a)) is further amended by adding at the 
        end the following new paragraph:
            ``(3) Tiers of penalties described.--For purposes of 
        paragraph (1), with respect to a violation by a person of a 
        provision of this part--
                    ``(A) the amount described in this subparagraph is 
                $100 for each such violation, except that the total 
                amount imposed on the person for all such violations of 
                an identical requirement or prohibition during a 
                calendar year may not exceed $25,000;
                    ``(B) the amount described in this subparagraph is 
                $1,000 for each such violation, except that the total 
                amount imposed on the person for all such violations of 
                an identical requirement or prohibition during a 
                calendar year may not exceed $100,000;
                    ``(C) the amount described in this subparagraph is 
                $10,000 for each such violation, except that the total 
                amount imposed on the person for all such violations of 
                an identical requirement or prohibition during a 
                calendar year may not exceed $250,000; and
                    ``(D) the amount described in this subparagraph is 
                $50,000 for each such violation, except that the total 
                amount imposed on the person for all such violations of 
                an identical requirement or prohibition during a 
                calendar year may not exceed $1,500,000.''.
            (3) Conforming amendments.--Section 1176(b) of such Act (42 
        U.S.C. 1320d-5(b)) is amended--
                    (A) by striking paragraph (2) and redesignating 
                paragraphs (3) and (4) as paragraphs (2) and (3), 
                respectively; and
                    (B) in paragraph (2), as so redesignated--
                            (i) in subparagraph (A), by striking ``in 
                        subparagraph (B), a penalty may not be imposed 
                        under subsection (a) if'' and all that follows 
                        through ``the failure to comply is corrected'' 
                        and inserting ``in subparagraph (B) or 
                        subsection (a)(1)(C), a penalty may not be 
                        imposed under subsection (a) if the failure to 
                        comply is corrected''; and
                            (ii) in subparagraph (B), by striking 
                        ``(A)(ii)'' and inserting ``(A)'' each place it 
                        appears.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to violations occurring after the date of the 
        enactment of this title.
    (e) Enforcement Through State Attorneys General.--
            (1) In general.--Section 1176 of the Social Security Act 
        (42 U.S.C. 1320d-5) is amended by adding at the end the 
        following new subsection:
    ``(c) Enforcement by State Attorneys General.--
            ``(1) Civil action.--Except as provided in subsection (b), 
        in any case in which the attorney general of a State has reason 
        to believe that an interest of one or more of the residents of 
        that State has been or is threatened or adversely affected by 
        any person who violates a provision of this part, the attorney 
        general of the State, as parens patriae, may bring a civil 
        action on behalf of such residents of the State in a district 
        court of the United States of appropriate jurisdiction--
                    ``(A) to enjoin further such violation by the 
                defendant; or
                    ``(B) to obtain damages on behalf of such residents 
                of the State, in an amount equal to the amount 
                determined under paragraph (2).
            ``(2) Statutory damages.--
                    ``(A) In general.--For purposes of paragraph 
                (1)(B), the amount determined under this paragraph is 
                the amount calculated by multiplying the number of 
                violations by up to $100. For purposes of the preceding 
                sentence, in the case of a continuing violation, the 
                number of violations shall be determined consistent 
                with the HIPAA privacy regulations (as defined in 
                section 1180(b)(3)) for violations of subsection (a).
                    ``(B) Limitation.--The total amount of damages 
                imposed on the person for all violations of an 
                identical requirement or prohibition during a calendar 
                year may not exceed $25,000.
                    ``(C) Reduction of damages.--In assessing damages 
                under subparagraph (A), the court may consider the 
                factors the Secretary may consider in determining the 
                amount of a civil money penalty under subsection (a) 
                under the HIPAA privacy regulations.
            ``(3) Attorney fees.--In the case of any successful action 
        under paragraph (1), the court, in its discretion, may award 
        the costs of the action and reasonable attorney fees to the 
        State.
            ``(4) Notice to secretary.--The State shall serve prior 
        written notice of any action under paragraph (1) upon the 
        Secretary and provide the Secretary with a copy of its 
        complaint, except in any case in which such prior notice is not 
        feasible, in which case the State shall serve such notice 
        immediately upon instituting such action. The Secretary shall 
        have the right--
                    ``(A) to intervene in the action;
                    ``(B) upon so intervening, to be heard on all 
                matters arising therein; and
                    ``(C) to file petitions for appeal.
            ``(5) Construction.--For purposes of bringing any civil 
        action under paragraph (1), nothing in this section shall be 
        construed to prevent an attorney general of a State from 
        exercising the powers conferred on the attorney general by the 
        laws of that State.
            ``(6) Venue; service of process.--
                    ``(A) Venue.--Any action brought under paragraph 
                (1) may be brought in the district court of the United 
                States that meets applicable requirements relating to 
                venue under section 1391 of title 28, United States 
                Code.
                    ``(B) Service of process.--In an action brought 
                under paragraph (1), process may be served in any 
                district in which the defendant--
                            ``(i) is an inhabitant; or
                            ``(ii) maintains a physical place of 
                        business.
            ``(7) Limitation on state action while federal action is 
        pending.--If the Secretary has instituted an action against a 
        person under subsection (a) with respect to a specific 
        violation of this part, no State attorney general may bring an 
        action under this subsection against the person with respect to 
        such violation during the pendency of that action.
            ``(8) Application of cmp statute of limitation.--A civil 
        action may not be instituted with respect to a violation of 
        this part unless an action to impose a civil money penalty may 
        be instituted under subsection (a) with respect to such 
        violation consistent with the second sentence of section 
        1128A(c)(1).''.
            (2) Conforming amendments.--Subsection (b) of such section, 
        as amended by subsection (d)(3), is amended--
                    (A) in paragraph (1), by striking ``A penalty may 
                not be imposed under subsection (a)'' and inserting 
                ``No penalty may be imposed under subsection (a) and no 
                damages obtained under subsection (c)'';
                    (B) in paragraph (2)(A)--
                            (i) in the matter before clause (i), by 
                        striking ``a penalty may not be imposed under 
                        subsection (a)'' and inserting ``no penalty may 
                        be imposed under subsection (a) and no damages 
                        obtained under subsection (c)''; and
                            (ii) in clause (ii), by inserting ``or 
                        damages'' after ``the penalty'';
                    (C) in paragraph (2)(B)(i), by striking ``The 
                period'' and inserting ``With respect to the imposition 
                of a penalty by the Secretary under subsection (a), the 
                period''; and
                    (D) in paragraph (3), by inserting ``and any 
                damages under subsection (c)'' after ``any penalty 
                under subsection (a)''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to violations occurring after the date of the 
        enactment of this Act.
    (f) Allowing Continued Use of Corrective Action.--Such section is 
further amended by adding at the end the following new subsection:
    ``(d) Allowing Continued Use of Corrective Action.--Nothing in this 
section shall be construed as preventing the Office of Civil Rights of 
the Department of Health and Human Services from continuing, in its 
discretion, to use corrective action without a penalty in cases where 
the person did not know (and by exercising reasonable diligence would 
not have known) of the violation involved.''.

SEC. 4411. AUDITS.

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

SEC. 4412. SPECIAL RULE FOR INFORMATION TO REDUCE MEDICATION ERRORS AND 
              IMPROVE PATIENT SAFETY.

    Nothing under this subtitle shall prevent a pharmacist from 
communicating with patients in order to reduce medication errors and 
improve patient safety provided there is no remuneration other than for 
the treatment of the individual and payment for such treatment of the 
individual as defined in 45 CFR 164.501.   The Secretary may by 
regulation authorize a pharmacy to receive remuneration that does not 
exceed their reasonable out-of-pocket costs for such communications if 
the Secretary determines that allowing this remuneration improves 
patient care and protects protected health information.

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

SEC. 4421. RELATIONSHIP TO OTHER LAWS.

    (a) Application of HIPAA State Preemption.--Section 1178 of the 
Social Security Act (42 U.S.C. 1320d-7) shall apply to a provision or 
requirement under this subtitle in the same manner that such section 
applies to a provision or requirement under part C of title XI of such 
Act or a standard or implementation specification adopted or 
established under sections 1172 through 1174 of such Act.
    (b) Health Insurance Portability and Accountability Act.--The 
standards governing the privacy and security of individually 
identifiable health information promulgated by the Secretary under 
sections 262(a) and 264 of the Health Insurance Portability and 
Accountability Act of 1996 shall remain in effect to the extent that 
they are consistent with this subtitle. The Secretary shall by rule 
amend such Federal regulations as required to make such regulations 
consistent with this subtitle.

SEC. 4422. REGULATORY REFERENCES.

    Each reference in this subtitle to a provision of the Code of 
Federal Regulations refers to such provision as in effect on the date 
of the enactment of this title (or to the most recent update of such 
provision).

SEC. 4423. EFFECTIVE DATE.

    Except as otherwise specifically provided, the provisions of part I 
shall take effect on the date that is 12 months after the date of the 
enactment of this title.

SEC. 4424. STUDIES, REPORTS, GUIDANCE.

    (a) Report on Compliance.--
            (1) In general.--For the first year beginning after the 
        date of the enactment of this Act and annually thereafter, the 
        Secretary shall prepare and submit to the Committee on Health, 
        Education, Labor, and Pensions of the Senate and the Committee 
        on Ways and Means and the Committee on Energy and Commerce of 
        the House of Representatives a report concerning complaints of 
        alleged violations of law, including the provisions of this 
        subtitle as well as the provisions of subparts C and E of part 
        164 of title 45, Code of Federal Regulations, (as such 
        provisions are in effect as of the date of enactment of this 
        Act) relating to privacy and security of health information 
        that are received by the Secretary during the year for which 
        the report is being prepared. Each such report shall include, 
        with respect to such complaints received during the year--
                    (A) the number of such complaints;
                    (B) the number of such complaints resolved 
                informally, a summary of the types of such complaints 
                so resolved, and the number of covered entities that 
                received technical assistance from the Secretary during 
                such year in order to achieve compliance with such 
                provisions and the types of such technical assistance 
                provided;
                    (C) the number of such complaints that have 
                resulted in the imposition of civil monetary penalties 
                or have been resolved through monetary settlements, 
                including the nature of the complaints involved and the 
                amount paid in each penalty or settlement;
                    (D) the number of compliance reviews conducted and 
                the outcome of each such review;
                    (E) the number of subpoenas or inquiries issued;
                    (F) the Secretary's plan for improving compliance 
                with and enforcement of such provisions for the 
                following year; and
                    (G) the number of audits performed and a summary of 
                audit findings pursuant to section 4411.
            (2) Availability to public.--Each report under paragraph 
        (1) shall be made available to the public on the Internet 
        website of the Department of Health and Human Services.
    (b) Study and Report on Application of Privacy and Security 
Requirements to Non-HIPAA Covered Entities.--
            (1) Study.--Not later than one year after the date of the 
        enactment of this title, the Secretary, in consultation with 
        the Federal Trade Commission, shall conduct a study, and submit 
        a report under paragraph (2), on privacy and security 
        requirements for entities that are not covered entities or 
        business associates as of the date of the enactment of this 
        title, including--
                    (A) requirements relating to security, privacy, and 
                notification in the case of a breach of security or 
                privacy (including the applicability of an exemption to 
                notification in the case of individually identifiable 
                health information that has been rendered unusable, 
                unreadable, or indecipherable through technologies or 
                methodologies recognized by appropriate professional 
                organization or standard setting bodies to provide 
                effective security for the information) that should be 
                applied to--
                            (i) vendors of personal health records;
                            (ii) entities that offer products or 
                        services through the website of a vendor of 
                        personal health records;
                            (iii) entities that are not covered 
                        entities and that offer products or services 
                        through the websites of covered entities that 
                        offer individuals personal health records;
                            (iv) entities that are not covered entities 
                        and that access information in a personal 
                        health record or send information to a personal 
                        health record; and
                            (v) third party service providers used by a 
                        vendor or entity described in clause (i), (ii), 
                        (iii), or (iv) to assist in providing personal 
                        health record products or services;
                    (B) a determination of which Federal government 
                agency is best equipped to enforce such requirements 
                recommended to be applied to such vendors, entities, 
                and service providers under subparagraph (A); and
                    (C) a timeframe for implementing regulations based 
                on such findings.
            (2) Report.--The Secretary shall submit to the Committee on 
        Finance, the Committee on Health, Education, Labor, and 
        Pensions, and the Committee on Commerce of the Senate and the 
        Committee on Ways and Means and the Committee on Energy and 
        Commerce of the House of Representatives a report on the 
        findings of the study under paragraph (1) and shall include in 
        such report recommendations on the privacy and security 
        requirements described in such paragraph.
    (c) Guidance on Implementation Specification To De-Identify 
Protected Health Information.--Not later than 12 months after the date 
of the enactment of this title, the Secretary shall, in consultation 
with stakeholders, issue guidance on how best to implement the 
requirements for the de-identification of protected health information 
under section 164.514(b) of title 45, Code of Federal Regulations.
    (d) GAO Report on Treatment Disclosures.--Not later than one year 
after the date of the enactment of this title, the Comptroller General 
of the United States shall submit to the Committee on Health, 
Education, Labor, and Pensions of the Senate and the Committee on Ways 
and Means and the Committee on Energy and Commerce of the House of 
Representatives a report on the best practices related to the 
disclosure among health care providers of protected health information 
of an individual for purposes of treatment of such individual. Such 
report shall include an examination of the best practices implemented 
by States and by other entities, such as health information exchanges 
and regional health information organizations, an examination of the 
extent to which such best practices are successful with respect to the 
quality of the resulting health care provided to the individual and 
with respect to the ability of the health care provider to manage such 
best practices, and an examination of the use of electronic informed 
consent for disclosing protected health information for treatment, 
payment, and health care operations.

             Subtitle E--Miscellaneous Medicare Provisions

SEC. 4501. MORATORIA ON CERTAIN MEDICARE REGULATIONS.

    (a) Delay in Phase Out of Medicare Hospice Budget Neutrality 
Adjustment Factor During Fiscal Year 2009.--Notwithstanding any other 
provision of law, including the final rule published on August 8, 2008, 
73 Federal Register 46464 et seq., relating to Medicare Program; 
Hospice Wage Index for Fiscal Year 2009, the Secretary of Health and 
Human Services shall not phase out or eliminate the budget neutrality 
adjustment factor in the Medicare hospice wage index before October 1, 
2009, and the Secretary shall recompute and apply the final Medicare 
hospice wage index for fiscal year 2009 as if there had been no 
reduction in the budget neutrality adjustment factor.
    (b) Non-Application of Phased-Out Indirect Medical Education (IME) 
Adjustment Factor for Fiscal Year 2009.--
            (1) In general.--Section 412.322 of title 42, Code of 
        Federal Regulations, shall be applied without regard to 
        paragraph (c) of such section, and the Secretary of Health and 
        Human Services shall recompute payments for discharges 
        occurring on or after October 1, 2008, as if such paragraph had 
        never been in effect.
            (2) No effect on subsequent years.--Nothing in paragraph 
        (1) shall be construed as having any effect on the application 
        of paragraph (d) of section 412.322 of title 42, Code of 
        Federal Regulations.
    (c) Funding for Implementation.--In addition to funds otherwise 
available, for purposes of implementing the provisions of subsections 
(a) and (b), including costs incurred in reprocessing claims in 
carrying out such provisions, the Secretary of Health and Human 
Services shall provide for the transfer from the Federal Hospital 
Insurance Trust Fund established under section 1817 of the Social 
Security Act (42 U.S.C. 1395i) to the Centers for Medicare & Medicaid 
Services Program Management Account of $2,000,000 for fiscal year 2009.

SEC. 4502. LONG-TERM CARE HOSPITAL TECHNICAL CORRECTIONS.

    (a) Payment.--Subsection (c) of section 114 of the Medicare, 
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-173) is 
amended--
            (1) in paragraph (1)--
                    (A) by amending the heading to read as follows: 
                ``Delay in application of 25 percent patient threshold 
                payment adjustment'';
                    (B) by striking ``the date of the enactment of this 
                Act'' and inserting ``July 1, 2007,''; and
                    (C) in subparagraph (A), by inserting ``or to a 
                long-term care hospital, or satellite facility, that as 
                of December 29, 2007, was co-located with an entity 
                that is a provider-based, off-campus location of a 
                subsection (d) hospital which did not provide services 
                payable under section 1886(d) of the Social Security 
                Act at the off-campus location'' after ``freestanding 
                long-term care hospitals''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (B)(ii), by inserting ``or that 
                is described in section 412.22(h)(3)(i) of such title'' 
                before the period; and
                    (B) in subparagraph (C), by striking ``the date of 
                the enactment of this Act'' and inserting ``October 1, 
                2007 (or July 1, 2007, in the case of a satellite 
                facility described in section 412.22(h)(3)(i) of title 
                42, Code of Federal Regulations)''.
    (b) Moratorium.--Subsection (d)(3)(A) of such section is amended by 
striking ``if the hospital or facility'' and inserting ``if the 
hospital or facility obtained a certificate of need for an increase in 
beds that is in a State for which such certificate of need is required 
and that was issued on or after April 1, 2005, and before December 29, 
2007, or if the hospital or facility''.
    (c) Effective Date.--The amendments made by this section shall be 
effective and apply as if included in the enactment of the Medicare, 
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-173).

                      TITLE V--MEDICAID PROVISIONS

SEC. 5000. TABLE OF CONTENTS OF TITLE.

    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.

SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP.

    (a) Permitting Maintenance of FMAP.--Subject to subsections (e), 
(f), and (g), if the FMAP determined without regard to this section for 
a State for--
            (1) fiscal year 2009 is less than the FMAP as so determined 
        for fiscal year 2008, the FMAP for the State for fiscal year 
        2008 shall be substituted for the State's FMAP for fiscal year 
        2009, before the application of this section;
            (2) fiscal year 2010 is less than the FMAP as so determined 
        for fiscal year 2008 or fiscal year 2009 (after the application 
        of paragraph (1)), the greater of such FMAP for the State for 
        fiscal year 2008 or fiscal year 2009 shall be substituted for 
        the State's FMAP for fiscal year 2010, before the application 
        of this section; and
            (3) fiscal year 2011 is less than the FMAP as so determined 
        for fiscal year 2008, fiscal year 2009 (after the application 
        of paragraph (1)), or fiscal year 2010 (after the application 
        of paragraph (2)), the greatest of such FMAP for the State for 
        fiscal year 2008, fiscal year 2009, or fiscal year 2010 shall 
        be substituted for the State's FMAP for fiscal year 2011, 
        before the application of this section, but only for the first 
        calendar quarter in fiscal year 2011.
    (b) General 4.9 Percentage Point Increase.--
            (1) In general.--Subject to subsections (e), (f), and (g) 
        and paragraph (2), for each State for calendar quarters during 
        the recession adjustment period (as defined in subsection 
        (h)(2)), the FMAP (after the application of subsection (a)) 
        shall be increased (without regard to any limitation otherwise 
        specified in section 1905(b) of the Social Security Act) by 4.9 
        percentage points.
            (2) Special election for territories.--In the case of a 
        State that is not one of the 50 States or the District of 
        Columbia, paragraph (1) shall only apply if the State makes a 
        one-time election, in a form and manner specified by the 
        Secretary and for the entire recession adjustment period, to 
        apply the increase in FMAP under paragraph (1) and a 10 percent 
        increase under subsection (d) instead of applying a 20 percent 
        increase under subsection (d).
    (c) Additional Adjustment To Reflect Increase in Unemployment.--
            (1) In general.--Subject to subsections (e), (f), and (g), 
        in the case of a State that is a high unemployment State (as 
        defined in paragraph (2)) for a calendar quarter during the 
        recession adjustment period, the FMAP (taking into account the 
        application of subsections (a) and (b)) for such quarter shall 
        be further increased by the high unemployment percentage point 
        adjustment specified in paragraph (3) for the State for the 
        quarter.
            (2) High unemployment state.--
                    (A) In general.--In this subsection, subject to 
                subparagraph (B), the term ``high unemployment State'' 
                means, with respect to a calendar quarter in the 
                recession adjustment period, a State that is 1 of the 
                50 States or the District of Columbia and for which the 
                State unemployment increase percentage (as computed 
                under paragraph (5)) for the quarter is not less than 
                1.5 percentage points.
                    (B) Maintenance of status.--If a State is a high 
                unemployment State for a calendar quarter, it shall 
                remain a high unemployment State for each subsequent 
                calendar quarter ending before July 1, 2010.
            (3) High unemployment percentage point adjustment.--
                    (A) In general.--The high unemployment percentage 
                point adjustment specified in this paragraph for a high 
                unemployment State for a quarter is equal to the 
                product of--
                            (i) the SMAP for such State and quarter 
                        (determined after the application of subsection 
                        (a) and before the application of subsection 
                        (b)); and
                            (ii) subject to subparagraph (B), the State 
                        unemployment reduction factor specified in 
                        paragraph (4) for the State and quarter.
                    (B) Maintenance of adjustment level for certain 
                quarters.--In no case shall the State unemployment 
                reduction factor applied under subparagraph (A)(ii) for 
                a State for a quarter (beginning on or after January 1, 
                2009, and ending before July 1, 2010) be less than the 
                State unemployment reduction factor applied to the 
                State for the previous quarter (taking into account the 
                application of this subparagraph).
            (4) State unemployment reduction factor.--In the case of a 
        high unemployment State for which the State unemployment 
        increase percentage (as computed under paragraph (5)) with 
        respect to a calendar quarter is--
                    (A) not less than 1.5, but is less than 2.5, 
                percentage points, the State unemployment reduction 
                factor for the State and quarter is 6 percent;
                    (B) not less than 2.5, but is less than 3.5, 
                percentage points, the State unemployment reduction 
                factor for the State and quarter is 12 percent; or
                    (C) not less than 3.5 percentage points, the State 
                unemployment reduction factor for the State and quarter 
                is 14 percent.
            (5) Computation of state unemployment increase 
        percentage.--
                    (A) In general.--In this subsection, the ``State 
                unemployment increase percentage'' for a State for a 
                calendar quarter is equal to the number of percentage 
                points (if any) by which--
                            (i) the average monthly unemployment rate 
                        for the State for months in the most recent 
                        previous 3-consecutive-month period for which 
                        data are available, subject to subparagraph 
                        (C); exceeds
                            (ii) the lowest average monthly 
                        unemployment rate for the State for any 3-
                        consecutive-month period preceding the period 
                        described in clause (i) and beginning on or 
                        after January 1, 2006.
                    (B) Average monthly unemployment rate defined.--In 
                this paragraph, the term ``average monthly unemployment 
                rate'' means the average of the monthly number 
                unemployed, divided by the average of the monthly 
                civilian labor force, seasonally adjusted, as 
                determined based on the most recent monthly 
                publications of the Bureau of Labor Statistics of the 
                Department of Labor.
                    (C) Special rule.--With respect to--
                            (i) the first 2 calendar quarters of the 
                        recession adjustment period, the most recent 
                        previous 3-consecutive-month period described 
                        in subparagraph (A)(i) shall be the 3-
                        consecutive-month period beginning with October 
                        2008; and
                            (ii) the last 2 calendar quarters of the 
                        recession adjustment period, the most recent 
                        previous 3-consecutive-month period described 
                        in such subparagraph shall be the 3-
                        consecutive-month period beginning with 
                        December 2009.
    (d)  Increase in Cap on Medicaid Payments to Territories.--Subject 
to subsections (f) and (g) , with respect to entire fiscal years 
occurring during the recession adjustment period and with respect to 
fiscal years only a portion of which occurs during such period (and in 
proportion to the portion of the fiscal year that occurs during such 
period), the amounts otherwise determined for Puerto Rico, the Virgin 
Islands, Guam, the Northern Mariana Islands, and American Samoa under 
subsections (f) and (g) of section 1108 of the Social Security Act (42 
U.S.C. 1308) shall each be increased by 20 percent (or, in the case of 
an election under subsection (b)(2), 10 percent).
    (e) Scope of Application.--The increases in the FMAP for a State 
under this section shall apply for purposes of title XIX of the Social 
Security Act and--
            (1) the increases applied under subsections (a), (b), and 
        (c) shall not apply with respect--
                    (A) to payments under parts A, B, and D of title IV 
                or title XXI of such Act (42 U.S.C. 601 et seq. and 
                1397aa et seq.);
                    (B) to payments under title XIX of such Act that 
                are based on the enhanced FMAP described in section 
                2105(b) of such Act (42 U.S.C. 1397ee(b)); and
                    (C) to payments for disproportionate share hospital 
                (DSH) payment adjustments under section 1923 of such 
                Act (42 U.S.C. 1396r-4); and
            (2) the increase provided under subsection (c) shall not 
        apply with respect to payments under part E of title IV of such 
        Act.
    (f) State Ineligibility and Limitation.--
            (1) In general.--Subject to paragraphs (2) and (3), a State 
        is not eligible for an increase in its FMAP under subsection 
        (a), (b), or (c), or an increase in a cap amount under 
        subsection (d), if eligibility standards, methodologies, or 
        procedures under its State plan under title XIX of the Social 
        Security Act (including any waiver under such title or under 
        section 1115 of such Act (42 U.S.C. 1315)) are more restrictive 
        than the eligibility standards, methodologies, or procedures, 
        respectively, under such plan (or waiver) as in effect on July 
        1, 2008.
            (2) State reinstatement of eligibility permitted.--Subject 
        to paragraph (3), a State that has restricted eligibility 
        standards, methodologies, or procedures under its State plan 
        under title XIX of the Social Security Act (including any 
        waiver under such title or under section 1115 of such Act (42 
        U.S.C. 1315)) after July 1, 2008, is no longer ineligible under 
        paragraph (1) beginning with the first calendar quarter in 
        which the State has reinstated eligibility standards, 
        methodologies, or procedures that are no more restrictive than 
        the eligibility standards, methodologies, or procedures, 
        respectively, under such plan (or waiver) as in effect on July 
        1, 2008.
            (3) Special rules.--A State shall not be ineligible under 
        paragraph (1)--
                    (A) for the calendar quarters before July 1, 2009, 
                on the basis of a restriction that was applied after 
                July 1, 2008, and before the date of the enactment of 
                this Act, if the State, prior to July 1, 2009, 
                reinstated eligibility standards, methodologies, or 
                procedures that are no more restrictive than the 
                eligibility standards, methodologies, or procedures, 
                respectively, under such plan (or waiver) as in effect 
                on July 1, 2008; or
                    (B) on the basis of a restriction that was 
                effective under State law as of July 1, 2008, and would 
                have been in effect as of such date, but for a delay 
                (of not longer than 1 calendar quarter) in the approval 
                of a request for a new waiver under section 1115 of 
                such Act with respect to such restriction.
            (4) State's application toward rainy day fund.--A State is 
        not eligible for an increase in its FMAP under subsection (b) 
        or (c), or an increase in a cap amount under subsection (d), if 
        any amounts attributable (directly or indirectly) to such 
        increase are deposited or credited into any reserve or rainy 
        day fund of the State.
            (5) Rule of construction.--Nothing in paragraph (1) or (2) 
        shall be construed as affecting a State's flexibility with 
        respect to benefits offered under the State Medicaid program 
        under title XIX of the Social Security Act (42 U.S.C. 1396 et 
        seq.) (including any waiver under such title or under section 
        1115 of such Act (42 U.S.C. 1315)).
            (6) No waiver authority.--The Secretary may not waive the 
        application of this subsection or subsection (g) under section 
        1115 of the Social Security Act or otherwise.
    (g) Requirement for Certain States.--In the case of a State that 
requires political subdivisions within the State to contribute toward 
the non-Federal share of expenditures under the State Medicaid plan 
required under section 1902(a)(2) of the Social Security Act (42 U.S.C. 
1396a(a)(2)), the State is not eligible for an increase in its FMAP 
under subsection (a), (b), or (c), or an increase in a cap amount under 
subsection (d), if it requires that such political subdivisions pay a 
greater percentage of the non-Federal share of such expenditures for 
quarters during the recession adjustment period, than the percentage 
that would have been required by the State under such plan on September 
30, 2008, prior to application of this section.
    (h) Definitions.--In this section, except as otherwise provided:
            (1) FMAP.--The term ``FMAP'' means the Federal medical 
        assistance percentage, as defined in section 1905(b) of the 
        Social Security Act (42 U.S.C. 1396d(b)), as determined without 
        regard to this section except as otherwise specified.
            (2) Recession adjustment period.--The term ``recession 
        adjustment period'' means the period beginning on October 1, 
        2008, and ending on December 31, 2010.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (4) SMAP.--The term ``SMAP'' means, for a State, 100 
        percent minus the Federal medical assistance percentage.
            (5) State.--The term ``State'' has the meaning given such 
        term in section 1101(a)(1) of the Social Security Act (42 
        U.S.C. 1301(a)(1)) for purposes of title XIX of the Social 
        Security Act (42 U.S.C. 1396 et seq.).
    (i) Sunset.--This section shall not apply to items and services 
furnished after the end of the recession adjustment period.

SEC. 5002. MORATORIA ON CERTAIN REGULATIONS.

    (a) Extension of Moratoria on Certain Medicaid Regulations.--The 
following sections are each amended by striking ``April 1, 2009'' and 
inserting ``July 1, 2009'':
            (1) Section 7002(a)(1) of the U.S. Troop Readiness, 
        Veterans' Care, Katrina Recovery, and Iraq Accountability 
        Appropriations Act, 2007 (Public Law 110-28), as amended by 
        section 7001(a)(1) of the Supplemental Appropriations Act, 2008 
        (Public Law 110-252).
            (2) Section 206 of the Medicare, Medicaid, and SCHIP 
        Extension Act of 2007 (Public Law 110-173), as amended by 
        section 7001(a)(2) of the Supplemental Appropriations Act, 2008 
        (Public Law 110-252).
            (3) Section 7001(a)(3)(A) of the Supplemental 
        Appropriations Act, 2008 (Public Law 110-252).
    (b) Additional Medicaid Moratorium.--Notwithstanding any other 
provision of law, with respect to expenditures for services furnished 
during the period beginning on December 8, 2008 and ending on June 30, 
2009, the Secretary of Health and Human Services shall not take any 
action (through promulgation of regulation, issuance of regulatory 
guidance, use of Federal payment audit procedures, or other 
administrative action, policy, or practice, including a Medical 
Assistance Manual transmittal or letter to State Medicaid directors) to 
implement the final regulation relating to clarification of the 
definition of outpatient hospital facility services under the Medicaid 
program published on November 7, 2008 (73 Federal Register 66187).

SEC. 5003. TRANSITIONAL MEDICAID ASSISTANCE (TMA).

    (a) 18-Month Extension.--
            (1) In general.--Sections 1902(e)(1)(B) and 1925(f) of the 
        Social Security Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are 
        each amended by striking ``September 30, 2003'' and inserting 
        ``December 31, 2010''.
            (2) Effective date.--The amendments made by this subsection 
        shall take effect on July 1, 2009.
    (b) State Option of Initial 12-Month Eligibility.--Section 1925 of 
the Social Security Act (42 U.S.C. 1396r-6) is amended--
            (1) in subsection (a)(1), by inserting ``but subject to 
        paragraph (5)'' after ``Notwithstanding any other provision of 
        this title'';
            (2) by adding at the end of subsection (a) the following:
            ``(5) Option of 12-month initial eligibility period.--A 
        State may elect to treat any reference in this subsection to a 
        6-month period (or 6 months) as a reference to a 12-month 
        period (or 12 months). In the case of such an election, 
        subsection (b) shall not apply.''; and
            (3) in subsection (b)(1), by inserting ``but subject to 
        subsection (a)(5)'' after ``Notwithstanding any other provision 
        of this title''.
    (c) Removal of Requirement for Previous Receipt of Medical 
Assistance.--Section 1925(a)(1) of such Act (42 U.S.C. 1396r-6(a)(1)), 
as amended by subsection (b)(1), is further amended--
            (1) by inserting ``subparagraph (B) and'' before 
        ``paragraph (5)'';
            (2) by redesignating the matter after ``Requirement.--'' as 
        a subparagraph (A) with the heading ``In general.--'' and with 
        the same indentation as subparagraph (B) (as added by paragraph 
        (3)); and
            (3) by adding at the end the following:
                    ``(B) State option to waive requirement for 3 
                months before receipt of medical assistance.--A State 
                may, at its option, elect also to apply subparagraph 
                (A) in the case of a family that was receiving such aid 
                for fewer than three months or that had applied for and 
                was eligible for such aid for fewer than 3 months 
                during the 6 immediately preceding months described in 
                such subparagraph.''.
    (d) CMS Report on Enrollment and Participation Rates Under TMA.--
Section 1925 of such Act (42 U.S.C. 1396r-6), as amended by this 
section, is further amended by adding at the end the following new 
subsection:
    ``(g) Collection and Reporting of Participation Information.--
            ``(1) Collection of information from states.--Each State 
        shall collect and submit to the Secretary (and make publicly 
        available), in a format specified by the Secretary, information 
        on average monthly enrollment and average monthly participation 
        rates for adults and children under this section and of the 
        number and percentage of children who become ineligible for 
        medical assistance under this section whose medical assistance 
        is continued under another eligibility category or who are 
        enrolled under the State's child health plan under title XXI. 
        Such information shall be submitted at the same time and 
        frequency in which other enrollment information under this 
        title is submitted to the Secretary.
            ``(2) Annual reports to congress.--Using the information 
        submitted under paragraph (1), the Secretary shall submit to 
        Congress annual reports concerning enrollment and participation 
        rates described in such paragraph.''.
    (e) Effective Date.--The amendments made by subsections (b) through 
(d) shall take effect on July 1, 2009.

SEC. 5004. STATE ELIGIBILITY OPTION FOR FAMILY PLANNING SERVICES.

    (a) Coverage as Optional Categorically Needy Group.--
            (1) In general.--Section 1902(a)(10)(A)(ii) of the Social 
        Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)), as amended by 
        section 3003(a) of the Health Insurance Assistance for the 
        Unemployed Act of 2009, is amended--
                    (A) in subclause (XIX), by striking ``or'' at the 
                end;
                    (B) in subclause (XX), by adding ``or'' at the end; 
                and
                    (C) by adding at the end the following new 
                subclause:
            ``(XXI) who are described in subsection (ee) (relating to 
        individuals who meet certain income standards);''.
            (2) Group described.--Section 1902 of such Act (42 U.S.C. 
        1396a), as amended by section 3003(a) of the Health Insurance 
        Assistance for the Unemployed Act of 2009, is amended by adding 
        at the end the following new subsection:
    ``(ee)(1) Individuals described in this subsection are 
individuals--
                    ``(A) whose income does not exceed an income 
                eligibility level established by the State that does 
                not exceed the highest income eligibility level 
                established under the State plan under this title (or 
                under its State child health plan under title XXI) for 
                pregnant women; and
                    ``(B) who are not pregnant.
            ``(2) At the option of a State, individuals described in 
        this subsection may include individuals who, had individuals 
        applied on or before January 1, 2007, would have been made 
        eligible pursuant to the standards and processes imposed by 
        that State for benefits described in clause (XV) of the matter 
        following subparagraph (G) of section subsection (a)(10) 
        pursuant to a waiver granted under section 1115.
            ``(3) At the option of a State, for purposes of subsection 
        (a)(17)(B), in determining eligibility for services under this 
        subsection, the State may consider only the income of the 
        applicant or recipient.''.
            (3) Limitation on benefits.--Section 1902(a)(10) of the 
        Social Security Act (42 U.S.C. 1396a(a)(10)) is amended in the 
        matter following subparagraph (G)--
                    (A) by striking ``and (XIV)'' and inserting 
                ``(XIV)''; and
                    (B) by inserting ``, and (XV) the medical 
                assistance made available to an individual described in 
                subsection (ee) shall be limited to family planning 
                services and supplies described in section 
                1905(a)(4)(C) including medical diagnosis and treatment 
                services that are provided pursuant to a family 
                planning service in a family planning setting'' after 
                ``cervical cancer''.
            (4) Conforming amendments.--Section 1905(a) of the Social 
        Security Act (42 U.S.C. 1396d(a)), as amended by section 
        3003(c)(2) of the Health Insurance Assistance for the 
        Unemployed Act of 2009, is amended in the matter preceding 
        paragraph (1)--
                    (A) in clause (xiii), by striking ``or'' at the 
                end;
                    (B) in clause (xiv), by adding ``or'' at the end; 
                and
                    (C) by inserting after clause (xiii) the following:
                            ``(xv) individuals described in section 
                        1902(ee),''.
    (b) Presumptive Eligibility.--
            (1) In general.--Title XIX of the Social Security Act (42 
        U.S.C. 1396 et seq.) is amended by inserting after section 
        1920B the following:

         ``presumptive eligibility for family planning services

    ``Sec. 1920C.  (a) State Option.--State plan approved under section 
1902 may provide for making medical assistance available to an 
individual described in section 1902(ee) (relating to individuals who 
meet certain income eligibility standard) during a presumptive 
eligibility period. In the case of an individual described in section 
1902(ee), such medical assistance shall be limited to family planning 
services and supplies described in 1905(a)(4)(C) and, at the State's 
option, medical diagnosis and treatment services that are provided in 
conjunction with a family planning service in a family planning 
setting.
    ``(b) Definitions.--For purposes of this section:
            ``(1) Presumptive eligibility period.--The term 
        `presumptive eligibility period' means, with respect to an 
        individual described in subsection (a), the period that--
                    ``(A) begins with the date on which a qualified 
                entity determines, on the basis of preliminary 
                information, that the individual is described in 
                section 1902(ee); and
                    ``(B) ends with (and includes) the earlier of--
                            ``(i) the day on which a determination is 
                        made with respect to the eligibility of such 
                        individual for services under the State plan; 
                        or
                            ``(ii) in the case of such an individual 
                        who does not file an application by the last 
                        day of the month following the month during 
                        which the entity makes the determination 
                        referred to in subparagraph (A), such last day.
            ``(2) Qualified entity.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `qualified entity' means any entity that--
                            ``(i) is eligible for payments under a 
                        State plan approved under this title; and
                            ``(ii) is determined by the State agency to 
                        be capable of making determinations of the type 
                        described in paragraph (1)(A).
                    ``(B) Rule of construction.--Nothing in this 
                paragraph shall be construed as preventing a State from 
                limiting the classes of entities that may become 
                qualified entities in order to prevent fraud and abuse.
    ``(c) Administration.--
            ``(1) In general.--The State agency shall provide qualified 
        entities with--
                    ``(A) such forms as are necessary for an 
                application to be made by an individual described in 
                subsection (a) for medical assistance under the State 
                plan; and
                    ``(B) information on how to assist such individuals 
                in completing and filing such forms.
            ``(2) Notification requirements.--A qualified entity that 
        determines under subsection (b)(1)(A) that an individual 
        described in subsection (a) is presumptively eligible for 
        medical assistance under a State plan shall--
                    ``(A) notify the State agency of the determination 
                within 5 working days after the date on which 
                determination is made; and
                    ``(B) inform such individual at the time the 
                determination is made that an application for medical 
                assistance is required to be made by not later than the 
                last day of the month following the month during which 
                the determination is made.
            ``(3) Application for medical assistance.--In the case of 
        an individual described in subsection (a) who is determined by 
        a qualified entity to be presumptively eligible for medical 
        assistance under a State plan, the individual shall apply for 
        medical assistance by not later than the last day of the month 
        following the month during which the determination is made.
    ``(d) Payment.--Notwithstanding any other provision of law, medical 
assistance that--
            ``(1) is furnished to an individual described in subsection 
        (a)--
                    ``(A) during a presumptive eligibility period;
                    ``(B) by a entity that is eligible for payments 
                under the State plan; and
            ``(2) is included in the care and services covered by the 
        State plan,
shall be treated as medical assistance provided by such plan for 
purposes of clause (4) of the first sentence of section 1905(b).''.
            (2) Conforming amendments.--
                    (A) Section 1902(a)(47) of the Social Security Act 
                (42 U.S.C. 1396a(a)(47)) is amended by inserting before 
                the semicolon at the end the following: ``and provide 
                for making medical assistance available to individuals 
                described in subsection (a) of section 1920C during a 
                presumptive eligibility period in accordance with such 
                section''.
                    (B) Section 1903(u)(1)(D)(v) of such Act (42 U.S.C. 
                1396b(u)(1)(D)(v)) is amended--
                            (i) by striking ``or for'' and inserting 
                        ``for''; and
                            (ii) by inserting before the period the 
                        following: ``, or for medical assistance 
                        provided to an individual described in 
                        subsection (a) of section 1920C during a 
                        presumptive eligibility period under such 
                        section''.
    (c) Clarification of Coverage of Family Planning Services and 
Supplies.--Section 1937(b) of the Social Security Act (42 U.S.C. 1396u-
7(b)) is amended by adding at the end the following:
            ``(5) Coverage of family planning services and supplies.--
        Notwithstanding the previous provisions of this section, a 
        State may not provide for medical assistance through enrollment 
        of an individual with benchmark coverage or benchmark-
        equivalent coverage under this section unless such coverage 
        includes for any individual described in section 1905(a)(4)(C), 
        medical assistance for family planning services and supplies in 
        accordance with such section.''.
    (d) Effective Date.--The amendments made by this section take 
effect on the date of the enactment of this Act and shall apply to 
items and services furnished on or after such date.

SEC. 5005. PROTECTIONS FOR INDIANS UNDER MEDICAID AND CHIP.

    (a) Premiums and Cost Sharing Protection Under Medicaid.--
            (1) In general.--Section 1916 of the Social Security Act 
        (42 U.S.C. 1396o) is amended--
                    (A) in subsection (a), in the matter preceding 
                paragraph (1), by striking ``and (i)'' and inserting 
                ``, (i), and (j)''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(j) No Premiums or Cost Sharing for Indians Furnished Items or 
Services Directly by Indian Health Programs or Through Referral Under 
Contract Health Services.--
            ``(1) No cost sharing for items or services furnished to 
        indians through indian health programs.--
                    ``(A) In general.--No enrollment fee, premium, or 
                similar charge, and no deduction, copayment, cost 
                sharing, or similar charge shall be imposed against an 
                Indian who is furnished an item or service directly by 
                the Indian Health Service, an Indian Tribe, Tribal 
                Organization, or Urban Indian Organization or through 
                referral under contract health services for which 
                payment may be made under this title.
                    ``(B) No reduction in amount of payment to indian 
                health providers.--Payment due under this title to the 
                Indian Health Service, an Indian Tribe, Tribal 
                Organization, or Urban Indian Organization, or a health 
                care provider through referral under contract health 
                services for the furnishing of an item or service to an 
                Indian who is eligible for assistance under such title, 
                may not be reduced by the amount of any enrollment fee, 
                premium, or similar charge, or any deduction, 
                copayment, cost sharing, or similar charge that would 
                be due from the Indian but for the operation of 
                subparagraph (A).
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed as restricting the application of any other 
        limitations on the imposition of premiums or cost sharing that 
        may apply to an individual receiving medical assistance under 
        this title who is an Indian.''.
            (2) Conforming amendment.--Section 1916A(b)(3) of such Act 
        (42 U.S.C. 1396o-1(b)(3)) is amended--
                    (A) in subparagraph (A), by adding at the end the 
                following new clause:
                            ``(vi) An Indian who is furnished an item 
                        or service directly by the Indian Health 
                        Service, an Indian Tribe, Tribal Organization 
                        or Urban Indian Organization or through 
                        referral under contract health services.''; and
                    (B) in subparagraph (B), by adding at the end the 
                following new clause:
                            ``(ix) Items and services furnished to an 
                        Indian directly by the Indian Health Service, 
                        an Indian Tribe, Tribal Organization or Urban 
                        Indian Organization or through referral under 
                        contract health services.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on October 1, 2009.
    (b) Treatment of Certain Property From Resources for Medicaid and 
CHIP Eligibility.--
            (1) Medicaid.--Section 1902 of the Social Security Act (42 
        U.S.C. 1396a), as amended by section 3003(a) of the Health 
        Insurance Assistance for the Unemployed Act of 2009 and section 
        5004, is amended by adding at the end the following new 
        subsection:
    ``(ff) Notwithstanding any other requirement of this title or any 
other provision of Federal or State law, a State shall disregard the 
following property from resources for purposes of determining the 
eligibility of an individual who is an Indian for medical assistance 
under this title:
            ``(1) Property, including real property and improvements, 
        that is held in trust, subject to Federal restrictions, or 
        otherwise under the supervision of the Secretary of the 
        Interior, located on a reservation, including any federally 
        recognized Indian Tribe's reservation, pueblo, or colony, 
        including former reservations in Oklahoma, Alaska Native 
        regions established by the Alaska Native Claims Settlement Act, 
        and Indian allotments on or near a reservation as designated 
        and approved by the Bureau of Indian Affairs of the Department 
        of the Interior.
            ``(2) For any federally recognized Tribe not described in 
        paragraph (1), property located within the most recent 
        boundaries of a prior Federal reservation.
            ``(3) Ownership interests in rents, leases, royalties, or 
        usage rights related to natural resources (including extraction 
        of natural resources or harvesting of timber, other plants and 
        plant products, animals, fish, and shellfish) resulting from 
        the exercise of federally protected rights.
            ``(4) Ownership interests in or usage rights to items not 
        covered by paragraphs (1) through (3) that have unique 
        religious, spiritual, traditional, or cultural significance or 
        rights that support subsistence or a traditional lifestyle 
        according to applicable tribal law or custom.''.
            (2) Application to chip.--Section 2107(e)(1) of such Act 
        (42 U.S.C. 1397gg(e)(1)) is amended by adding at the end the 
        following new subparagraph:
                    ``(E) Section 1902(ff) (relating to disregard of 
                certain property for purposes of making eligibility 
                determinations).''.
    (c) Continuation of Current Law Protections of Certain Indian 
Property From Medicaid Estate Recovery.--Section 1917(b)(3) of the 
Social Security Act (42 U.S.C. 1396p(b)(3)) is amended--
            (1) by inserting ``(A)'' after ``(3)''; and
            (2) by adding at the end the following new subparagraph:
                    ``(B) The standards specified by the Secretary 
                under subparagraph (A) shall require that the 
                procedures established by the State agency under 
                subparagraph (A) exempt income, resources, and property 
                that are exempt from the application of this subsection 
                as of April 1, 2003, under manual instructions issued 
                to carry out this subsection (as in effect on such 
                date) because of the Federal responsibility for Indian 
                Tribes and Alaska Native Villages. Nothing in this 
                subparagraph shall be construed as preventing the 
                Secretary from providing additional estate recovery 
                exemptions under this title for Indians.''.

SEC. 5006. CONSULTATION ON MEDICAID AND CHIP.

    (a) In General.--Section 1139 of the Social Security Act (42 U.S.C. 
1320b-9) is amended to read as follows:

       ``consultation with tribal technical advisory group (ttag)

    ``Sec. 1139. The Secretary shall maintain within the Centers for 
Medicaid & Medicare Services (CMS) a Tribal Technical Advisory Group, 
which was first established in accordance with requirements of the 
charter dated September 30, 2003, and the Secretary shall include in 
such Group a representative of the Urban Indian Organizations and the 
Service. The representative of the Urban Indian Organization shall be 
deemed to be an elected officer of a tribal government for purposes of 
applying section 204(b) of the Unfunded Mandates Reform Act of 1995 (2 
U.S.C. 1534(b)).''.
    (b) Solicitation of Advice Under Medicaid and CHIP.--
            (1) Medicaid state plan amendment.--Section 1902(a) of the 
        Social Security Act (42 U.S.C. 1396a(a)) is amended--
                    (A) in paragraph (70), by striking ``and'' at the 
                end;
                    (B) in paragraph (71), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by inserting after paragraph (71), the 
                following new paragraph:
            ``(72) in the case of any State in which 1 or more Indian 
        Health Programs or Urban Indian Organizations furnishes health 
        care services, provide for a process under which the State 
        seeks advice on a regular, ongoing basis from designees of such 
        Indian Health Programs and Urban Indian Organizations on 
        matters relating to the application of this title that are 
        likely to have a direct effect on such Indian Health Programs 
        and Urban Indian Organizations and that--
                    ``(A) shall include solicitation of advice prior to 
                submission of any plan amendments, waiver requests, and 
                proposals for demonstration projects likely to have a 
                direct effect on Indians, Indian Health Programs, or 
                Urban Indian Organizations; and
                    ``(B) may include appointment of an advisory 
                committee and of a designee of such Indian Health 
                Programs and Urban Indian Organizations to the medical 
                care advisory committee advising the State on its State 
                plan under this title.''.
            (2) Application to chip.--Section 2107(e)(1) of such Act 
        (42 U.S.C. 1397gg(e)(1)), as amended by section 5005(b), is 
        amended by adding at the end the following new subparagraph:
                    ``(F) Section 1902(a)(72) (relating to requiring 
                certain States to seek advice from designees of Indian 
                Health Programs and Urban Indian Organizations).''.
    (c) Rule of Construction.--Nothing in the amendments made by this 
section shall be construed as superseding existing advisory committees, 
working groups, guidance, or other advisory procedures established by 
the Secretary of Health and Human Services or by any State with respect 
to the provision of health care to Indians.

SEC. 5007. TEMPORARY INCREASE IN DSH ALLOTMENTS DURING RECESSION.

    Section 1923(f)(3) of the Social Security Act (42 U.S.C. 1396r-
4(f)(3)) is amended--
            (1) in subparagraph (A), by striking ``paragraph (6)'' and 
        inserting ``paragraph (6) and subparagraph (E)''; and
            (2) by adding at the end the following new subparagraph:
                    ``(E) Temporary increase in allotments during 
                recession.--
                            ``(i) In general.--Subject to clause (ii), 
                        the DSH allotment for any State--
                                    ``(I) for fiscal year 2009 is equal 
                                to 102.5 percent of the DSH allotment 
                                that would be determined under this 
                                paragraph for the State for fiscal year 
                                2009 without application of this 
                                subparagraph, notwithstanding 
                                subparagraph (B);
                                    ``(II) for fiscal year 2010 is 
                                equal to 102.5 percent of the the DSH 
                                allotment for the State for fiscal year 
                                2009, as determined under subclause 
                                (I); and
                                    ``(III) for each succeeding fiscal 
                                year is equal to the DSH allotment for 
                                the State under this paragraph 
                                determined without applying subclauses 
                                (I) and (II).
                            ``(ii) Application.--Clause (i) shall not 
                        apply to a State for a year in the case that 
                        the DSH allotment for such State for such year 
                        under this paragraph determined without 
                        applying clause (i) would grow higher than the 
                        DSH allotment specified under clause (i) for 
                        the State for such year.''.

                   TITLE VI--BROADBAND COMMUNICATIONS

SEC. 6001. INVENTORY OF BROADBAND SERVICE CAPABILITY AND AVAILABILITY.

    (a) Establishment.--To provide a comprehensive nationwide inventory 
of existing broadband service capability and availability, the National 
Telecommunications and Information Administration (``NTIA'') shall 
develop and maintain a broadband inventory map of the United States 
that identifies and depicts the geographic extent to which broadband 
service capability is deployed and available from a commercial provider 
or public provider throughout each State.
    (b) Public Availability and Interactivity.--Not later than 2 years 
after the date of enactment of this Act, the NTIA shall make the 
broadband inventory map developed and maintained pursuant to this 
section accessible by the public on a World Wide Web site of the NTIA 
in a form that is interactive and searchable.

SEC. 6002. WIRELESS AND BROADBAND DEPLOYMENT GRANT PROGRAMS.

    (a) Grants Authorized.--
            (1) In general.--The National Telecommunications and 
        Information Administration (``NTIA'') is authorized to carry 
        out a program to award grants to eligible entities for the non-
        recurring costs associated with the deployment of broadband 
        infrastructure in rural, suburban, and urban areas, in 
        accordance with the requirements of this section.
            (2) Program website.--The NTIA shall develop and maintain a 
        website to make publicly available information about the 
        program described in paragraph (1), including--
                    (A) each prioritization report submitted by a State 
                under subsection (b);
                    (B) a list of eligible entities that have applied 
                for a grant under this section, and the area or areas 
                the entity proposes to serve; and
                    (C) the status of each such application, whether 
                approved, denied, or pending.
    (b) State Priorities.--
            (1) Priorities report submission.--Not later than 75 days 
        after the date of enactment of this section, each State 
        intending to participate in the program under this section 
        shall submit to the NTIA a report indicating the geographic 
        areas of the State which--
                    (A) for the purposes of determining the need for 
                Wireless Deployment Grants under subsection (c), the 
                State considers to have the greatest priority for--
                            (i) wireless voice service in unserved 
                        areas; and
                            (ii) advanced wireless broadband service in 
                        underserved areas; and
                    (B) for the purposes of determining the need for 
                Broadband Deployment Grants under subsection (d), the 
                State considers to have the greatest priority for--
                            (i) basic broadband service in unserved 
                        areas; and
                            (ii) advanced broadband service in 
                        underserved areas.
            (2) Limitation.--The unserved and underserved areas 
        identified by a State in the report required by this subsection 
        shall not represent, in the aggregate, more than 20 percent of 
        the population of such State.
    (c) Wireless Deployment Grants.--
            (1) Authorized activity.--The NTIA shall award Wireless 
        Deployment Grants in accordance with this subsection from 
        amounts authorized for Wireless Deployment Grants by this 
        subtitle to eligible entities to deploy necessary 
        infrastructure for the provision of wireless voice service or 
        advanced wireless broadband service to end users in designated 
        areas.
            (2) Grant distribution.--The NTIA shall seek to distribute 
        grants, to the extent possible, so that 25 percent of the 
        grants awarded under this subsection shall be awarded to 
        eligible entities for providing wireless voice service to 
        unserved areas and 75 percent of grants awarded under this 
        subsection shall be awarded to eligible entities for providing 
        advanced wireless broadband service to underserved areas.
    (d) Broadband Deployment Grants.--
            (1) Authorized activity.--The NTIA shall award Broadband 
        Deployment Grants in accordance with this subsection from 
        amounts authorized for Broadband Deployment Grants by this 
        subtitle to eligible entities to deploy necessary 
        infrastructure for the provision of basic broadband service or 
        advanced broadband service to end users in designated areas.
            (2) Grant distribution.--The NTIA shall seek to distribute 
        grants, to the extent possible, so that 25 percent of the 
        grants awarded under this subsection shall be awarded to 
        eligible entities for providing basic broadband service to 
        unserved areas and 75 percent of grants awarded under this 
        subsection shall be awarded to eligible entities for providing 
        advanced broadband service to underserved areas.
    (e) Grant Requirements.--The NTIA shall--
            (1) adopt rules to protect against unjust enrichment; and
            (2) ensure that grant recipients--
                    (A) meet buildout requirements;
                    (B) maximize use of the supported infrastructure by 
                the public;
                    (C) operate basic and advanced broadband service 
                networks on an open access basis;
                    (D) operate advanced wireless broadband service on 
                a wireless open access basis; and
                    (E) adhere to the principles contained in the 
                Federal Communications Commission's broadband policy 
                statement (FCC 05-151, adopted August 5, 2005).
    (f) Applications.--
            (1) Submission.--To be considered for a grant awarded under 
        subsection (c) or (d), an eligible entity shall submit to the 
        NTIA an application at such time, in such manner, and 
        containing such information and assurances as the NTIA may 
        require. Such an application shall include--
                    (A) a cost-study estimate for serving the 
                particular geographic area to be served by the entity;
                    (B) a proposed build-out schedule to residential 
                households and small businesses in the area;
                    (C) for applicants for Wireless Deployment Grants 
                under subsection (c), a build-out schedule for 
                geographic coverage of such areas; and
                    (D) any other requirements the NTIA deems 
                necessary.
            (2) Selection.--
                    (A) Notification.--The NTIA shall notify each 
                eligible entity that has submitted a complete 
                application whether the entity has been approved or 
                denied for a grant under this section in a timely 
                fashion.
                    (B) Grant distribution considerations.--In awarding 
                grants under this section, the NTIA shall, to the 
                extent practical--
                            (i) award not less than one grant in each 
                        State;
                            (ii) give substantial weight to whether an 
                        application is from an eligible entity to 
                        deploy infrastructure in an area that is an 
                        area--
                                    (I) identified by a State in a 
                                report submitted under subsection (b); 
                                or
                                    (II) in which the NTIA determines 
                                there will be a significant amount of 
                                public safety or emergency response use 
                                of the infrastructure;
                            (iii) consider whether an application from 
                        an eligible entity to deploy infrastructure in 
                        an area--
                                    (I) will, if approved, increase the 
                                affordability of, or subscribership to, 
                                service to the greatest population of 
                                underserved users in the area;
                                    (II) will, if approved, enhance 
                                service for health care delivery, 
                                education, or children to the greatest 
                                population of underserved users in the 
                                area;
                                    (III) contains concrete plans for 
                                enhancing computer ownership or 
                                computer literacy in the area;
                                    (IV) is from a recipient of more 
                                than 20 percent matching grants from 
                                State, local, or private entities for 
                                service in the area and the extent of 
                                such commitment;
                                    (V) will, if approved, result in 
                                unjust enrichment because the eligible 
                                entity has applied for, or intends to 
                                apply for, support for the non-
                                recurring costs through another Federal 
                                program for service in the area; and
                                    (VI) will, if approved, 
                                significantly improve interoperable 
                                broadband communications systems 
                                available for use by public safety and 
                                emergency response; and
                            (iv) consider whether the eligible entity 
                        is a socially and economically disadvantaged 
                        small business concern, as defined under 
                        section 8(a) of the Small Business Act (15 
                        U.S.C. 637).
    (g) Coordination and Consultation.--The NTIA shall coordinate with 
the Federal Communications Commission and shall consult with other 
appropriate Federal agencies in implementing this section.
    (h) Report Required.--The NTIA shall submit an annual report to the 
Committee on Energy and Commerce of the House of Representatives and 
the Committee on Commerce, Science, and Transportation of the Senate 
for 5 years assessing the impact of the grants funded under this 
section on the basis of the objectives and criteria described in 
subsection (f)(2)(B)(iii).
    (i) Rulemaking Authority.--The NTIA shall have the authority to 
prescribe such rules as necessary to carry out the purposes of this 
section.
    (j) Definitions.--For the purpose of this section--
            (1) the term ``advanced broadband service'' means a service 
        delivering data to the end user transmitted at a speed of at 
        least 45 megabits per second downstream and at least 15 
        megabits per second upstream;
            (2) the term ``advanced wireless broadband service'' means 
        a wireless service delivering to the end user data transmitted 
        at a speed of at least 3 megabits per second downstream and at 
        least 1 megabit per second upstream over an end-to-end internet 
        protocol wireless network;
            (3) the term ``basic broadband service'' means a service 
        delivering data to the end user transmitted at a speed of at 
        least 5 megabits per second downstream and at least 1 megabit 
        per second upstream;
            (4) the term ``eligible entity'' means--
                    (A) a provider of wireless voice service, advanced 
                wireless broadband service, basic broadband service, or 
                advanced broadband service, including a satellite 
                carrier that provides any such service;
                    (B) a State or unit of local government, or agency 
                or instrumentality thereof, that is or intends to be a 
                provider of any such service; and
                    (C) any other entity, including construction 
                companies, tower companies, backhaul companies, or 
                other service providers, that the NTIA authorizes by 
                rule to participate in the programs under this section, 
                if such other entity is required to provide access to 
                the supported infrastructure on a neutral, reasonable 
                basis to maximize use;
            (5) the term ``interoperable broadband communications 
        systems'' means communications systems which enable public 
        safety agencies to share information among local, State, 
        Federal, and tribal public safety agencies in the same area 
        using voice or data signals via advanced wireless broadband 
        service;
            (6) the term ``open access'' shall be defined by the 
        Federal Communications Commission not later than 45 days after 
        the date of enactment of this section;
            (7) the term ``State'' includes the District of Columbia 
        and the territories and possessions;
            (8) the term ``underserved area'' shall be defined by the 
        Federal Communications Commission not later than 45 days after 
        the date of enactment of this section;
            (9) the term ``unserved area'' shall be defined by the 
        Federal Communications Commission not later than 45 days after 
        the date of enactment of this section;
            (10) the term ``wireless open access'' shall be defined by 
        the Federal Communications Commission not later than 45 days 
        after the date of enactment of this section; and
            (11) the term ``wireless voice service'' means the 
        provision of two-way, real-time, voice communications using a 
        mobile service.
    (k) Review of Definitions.--Not later than 3 months after the date 
the NTIA makes a broadband inventory map of the United States 
accessible to the public pursuant to section 6001(b), the Federal 
Communications Commission shall review the definitions of ``underserved 
area'' and ``unserved area'', as defined by the Commission within 45 
days after the date of enactment of this Act (as required by paragraphs 
(8) and (9) of subsection (j)), and shall revise such definitions based 
on the data used by the NTIA to develop and maintain such map.

SEC. 6003. NATIONAL BROADBAND PLAN.

    (a) Report Required.--Not later than 1 year after the date of 
enactment of this section, the Federal Communications Commission shall 
submit to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation of the Senate, a report containing a national broadband 
plan.
    (b) Contents of Plan.--The national broadband plan required by this 
section shall seek to ensure that all people of the United States have 
access to broadband capability and shall establish benchmarks for 
meeting that goal. The plan shall also include--
            (1) an analysis of the most effective and efficient 
        mechanisms for ensuring broadband access by all people of the 
        United States;
            (2) a detailed strategy for achieving affordability of such 
        service and maximum utilization of broadband infrastructure and 
        service by the public; and
            (3) a plan for use of broadband infrastructure and services 
        in advancing consumer welfare, civic participation, public 
        safety and homeland security, community development, health 
        care delivery, energy independence and efficiency, education, 
        worker training, private sector investment, entrepreneurial 
        activity, job creation and economic growth, and other national 
        purposes.

                           TITLE VII--ENERGY

SEC. 7001. TECHNICAL CORRECTIONS TO THE ENERGY INDEPENDENCE AND 
              SECURITY ACT OF 2007.

    (a) Section 543(a) of the Energy Independence and Security Act of 
2007 (42 U.S.C. 17153(a)) is amended--
            (1) by redesignating paragraphs (2) through (4) as 
        paragraphs (3) through (5), respectively; and
            (2) by striking paragraph (1) and inserting the following:
            ``(1) 34 percent to eligible units of local government-
        alternative 1, in accordance with subsection (b);
            ``(2) 34 percent to eligible units of local government-
        alternative 2, in accordance with subsection (b);''.
    (b) Section 543(b) of the Energy Independence and Security Act of 
2007 (42 U.S.C. 17153(b)) is amended by striking ``subsection (a)(1)'' 
and inserting ``subsection (a)(1) or (2)''.
    (c) Section 548(a)(1) of the Energy Independence and Security Act 
of 2007 (42 U.S.C. 17158(a)(1)) is amending by striking ``; provided'' 
and all that follows through ``541(3)(B)''.

SEC. 7002. AMENDMENTS TO TITLE XIII OF THE ENERGY INDEPENDENCE AND 
              SECURITY ACT OF 2007.

    Title XIII of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17381 and following) is amended as follows:
            (1) By amending subparagraph (A) of section 1304(b)(3) to 
        read as follows:
                    ``(A) In general.--In carrying out the initiative, 
                the Secretary shall provide financial support to smart 
                grid demonstration projects in urban, suburban, and 
                rural areas, including areas where electric system 
                assets are controlled by tax-exempt entities and areas 
                where electric system assets are controlled by 
                investor-owned utilities.''.
            (2) By amending subparagraph (C) of section 1304(b)(3) to 
        read as follows:
                    ``(C) Federal share of cost of technology 
                investments.--The Secretary shall provide to an 
                electric utility described in subparagraph (B) or to 
                other parties financial assistance for use in paying an 
                amount equal to not more than 50 percent of the cost of 
                qualifying advanced grid technology investments made by 
                the electric utility or other party to carry out a 
                demonstration project.''.
            (3) By inserting after section 1304(b)(3)(D) the following 
        new subparagraphs:
                    ``(E) Availability of data.--The Secretary shall 
                establish and maintain a smart grid information 
                clearinghouse in a timely manner which will make data 
                from smart grid demonstration projects and other 
                sources available to the public. As a condition of 
                receiving financial assistance under this subsection, a 
                utility or other participant in a smart grid 
                demonstration project shall provide such information as 
                the Secretary may require to become available through 
                the smart grid information clearinghouse in the form 
                and within the timeframes as directed by the Secretary. 
                The Secretary shall assure that business proprietary 
                information and individual customer information is not 
                included in the information made available through the 
                clearinghouse.
                    ``(F) Open internet-based protocols and 
                standards.--The Secretary shall require as a condition 
                of receiving funding under this subsection that 
                demonstration projects utilize open Internet-based 
                protocols and standards if available.''.
            (4) By amending paragraph (2) of section 1304(c) to read as 
        follows:
            ``(2) to carry out subsection (b), such sums as may be 
        necessary.''.
            (5) By amending subsection (a) of section 1306 by striking 
        ``reimbursement of one-fifth (20 percent)'' and inserting 
        ``grants of up to one-half (50 percent)''.
            (6) By striking the last sentence of subsection (b)(9) of 
        section 1306.
            (7) By striking ``are eligible for'' in subsection (c)(1) 
        of section 1306 and inserting ``utilize''.
            (8) By amending subsection (e) of section 1306 to read as 
        follows:
    ``(e) Procedures and Rules.--The Secretary shall--
            ``(1) establish within 60 days after the enactment of the 
        American Recovery and Reinvestment Act of 2009 procedures by 
        which applicants can obtain grants of not more than one-half of 
        their documented costs;
            ``(2) require as a condition of receiving a grant under 
        this section that grant recipients utilize open Internet-based 
        protocols and standards if available;
            ``(3) establish procedures to ensure that there is no 
        duplication or multiple payment or recovery for the same 
        investment or costs, that the grant goes to the party making 
        the actual expenditures for qualifying smart grid investments, 
        and that the grants made have significant effect in encouraging 
        and facilitating the development of a smart grid;
            ``(4) maintain public records of grants made, recipients, 
        and qualifying smart grid investments which have received 
        grants;
            ``(5) establish procedures to provide advance payment of 
        moneys up to the full amount of the grant award; and
            ``(6) have and exercise the discretion to deny grants for 
        investments that do not qualify in the reasonable judgment of 
        the Secretary.''.

SEC. 7003. RENEWABLE ENERGY AND ELECTRIC POWER TRANSMISSION LOAN 
              GUARANTEE PROGRAM.

    (a) Amendment.--Title XVII of the Energy Policy Act of 2005 (42 
U.S.C. 16511 et seq.) is amended by adding the following at the end:

``SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOYMENT OF RENEWABLE ENERGY 
              AND ELECTRIC POWER TRANSMISSION PROJECTS.

    ``(a) In General.--Notwithstanding section 1703, the Secretary may 
make guarantees under this section only for commercial technology 
projects under subsection (b) that will commence construction not later 
than September 30, 2011.
    ``(b) Categories.--Projects from only the following categories 
shall be eligible for support under this section:
            ``(1) Renewable energy systems, including incremental 
        hydropower, that generate electricity.
            ``(2) Electric power transmission systems, including 
        upgrading and reconductoring projects.
            ``(3) Leading edge biofuel projects that will use 
        technologies performing at the pilot or demonstration scale 
        that the Secretary determines are likely to become commercial 
        technologies and will produce transportation fuels that 
        substantially reduce life-cycle greenhouse gas emissions 
        compared to other transportation fuels.
    ``(c) Factors Relating to Electric Power Transmission Systems.--In 
determining to make guarantees to projects described in subsection 
(b)(2), the Secretary shall consider the following factors:
            ``(1) The viability of the project without guarantees.
            ``(2) The availability of other Federal and State 
        incentives.
            ``(3) The importance of the project in meeting reliability 
        needs.
            ``(4) The effect of the project in meeting a State or 
        region's environment (including climate change) and energy 
        goals.
    ``(d) Wage Rate Requirements.--The Secretary shall require that 
each recipient of support under this section provide reasonable 
assurance that all laborers and mechanics employed in the performance 
of the project for which the assistance is provided, including those 
employed by contractors or subcontractors, will be paid wages at rates 
not less than those prevailing on similar work in the locality as 
determined by the Secretary of Labor in accordance with subchapter IV 
of chapter 31 of part A of subtitle II of title 40, United States Code 
(commonly referred to as the `Davis-Bacon Act').
    ``(e) Limitation.--Funding under this section for projects 
described in subsection (b)(3) shall not exceed $500,000,000.
    ``(f) Sunset.--The authority to enter into guarantees under this 
section shall expire on September 30, 2011.''.
    (b) Table of Contents Amendment.--The table of contents for the 
Energy Policy Act of 2005 is amended by inserting after the item 
relating to section 1704 the following new item:

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

SEC. 7004. WEATHERIZATION ASSISTANCE PROGRAM AMENDMENTS.

    (a) Income Level.--Section 412(7) of the Energy Conservation and 
Production Act (42 U.S.C. 6862(7)) is amended by striking ``150 
percent'' both places it appears and inserting ``200 percent''.
    (b) Assistance Level Per Dwelling Unit.-- Section 415(c)(1) of the 
Energy Conservation and Production Act (42 U.S.C. 6865(c)(1)) is 
amended by striking ``$2,500'' and inserting ``$5,000''.
    (c) Effective Use of Funds.--In providing funds made available by 
this Act for the Weatherization Assistance Program, the Secretary may 
encourage States to give priority to using such funds for the most 
cost-effective efficiency activities, which may include insulation of 
attics, if, in the Secretary's view, such use of funds would increase 
the effectiveness of the program.

SEC. 7005. RENEWABLE ELECTRICITY TRANSMISSION STUDY.

    In completing the 2009 National Electric Transmission Congestion 
Study, the Secretary of Energy shall include--
            (1) an analysis of the significant potential sources of 
        renewable energy that are constrained in accessing appropriate 
        market areas by lack of adequate transmission capacity;
            (2) an analysis of the reasons for failure to develop the 
        adequate transmission capacity;
            (3) recommendations for achieving adequate transmission 
        capacity;
            (4) an analysis of the extent to which legal challenges 
        filed at the State and Federal level are delaying the 
        construction of transmission necessary to access renewable 
        energy; and
            (5) an explanation of assumptions and projections made in 
        the Study, including--
                    (A) assumptions and projections relating to energy 
                efficiency improvements in each load center;
                    (B) assumptions and projections regarding the 
                location and type of projected new generation capacity; 
                and
                    (C) assumptions and projections regarding projected 
                deployment of distributed generation infrastructure.

SEC. 7006. ADDITIONAL STATE ENERGY GRANTS.

    (a) In General.--Amounts appropriated in paragraph (6) under the 
heading ``Department of Energy--Energy Programs--Energy Efficiency and 
Renewable Energy'' in title V of division A of this Act shall be 
available to the Secretary of Energy for making additional grants under 
part D of title III of the Energy Policy and Conservation Act (42 
U.S.C. 6321 et seq.). The Secretary shall make grants under this 
section in excess of the base allocation established for a State under 
regulations issued pursuant to the authorization provided in section 
365(f) of such Act only if the governor of the recipient State notifies 
the Secretary of Energy that the governor will seek, to the extent of 
his or her authority, to ensure that each of the following will occur:
            (1) The applicable State regulatory authority will 
        implement the following regulatory policies for each electric 
        and gas utility with respect to which the State regulatory 
        authority has ratemaking authority:
                    (A) Policies that ensure that a utility's recovery 
                of prudent fixed costs of service is timely and 
                independent of its retail sales, without in the process 
                shifting prudent costs from variable to fixed charges. 
                This cost shifting constraint shall not apply to rate 
                designs adopted prior to the date of enactment of this 
                Act.
                    (B) Cost recovery for prudent investments by 
                utilities in energy efficiency.
                    (C) An earnings opportunity for utilities 
                associated with cost-effective energy efficiency 
                savings.
            (2) The State, or the applicable units of local government 
        that have authority to adopt building codes, will implement the 
        following:
                    (A) A building energy code (or codes) for 
                residential buildings that meets or exceeds the most 
                recently published International Energy Conservation 
                Code, or achieves equivalent or greater energy savings.
                    (B) A building energy code (or codes) for 
                commercial buildings throughout the State that meets or 
                exceeds the ANSI/ASHRAE/IESNA Standard 90.1-2007, or 
                achieves equivalent or greater energy savings.
                    (C) A plan for the jurisdiction achieving 
                compliance with the building energy code or codes 
                described in subparagraphs (A) and (B) within 8 years 
                of the date of enactment of this Act in at least 90 
                percent of new and renovated residential and commercial 
                building space. Such plan shall include active training 
                and enforcement programs and measurement of the rate of 
                compliance each year.
            (3) The State will to the extent practicable prioritize the 
        grants toward funding energy efficiency and renewable energy 
        programs, including--
                    (A) the expansion of existing energy efficiency 
                programs approved by the State or the appropriate 
                regulatory authority, including energy efficiency 
                retrofits of buildings and industrial facilities, that 
                are funded--
                            (i) by the State; or
                            (ii) through rates under the oversight of 
                        the applicable regulatory authority, to the 
                        extent applicable;
                    (B) the expansion of existing programs, approved by 
                the State or the appropriate regulatory authority, to 
                support renewable energy projects and deployment 
                activities, including programs operated by entities 
                which have the authority and capability to manage and 
                distribute grants, loans, performance incentives, and 
                other forms of financial assistance; and
                    (C) cooperation and joint activities between States 
                to advance more efficient and effective use of this 
                funding to support the priorities described in this 
                paragraph.
    (b) State Match.--The State cost share requirement under the item 
relating to ``DEPARTMENT OF ENERGY; energy conservation'' in title II 
of the Department of the Interior and Related Agencies Appropriations 
Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not apply to 
assistance provided under this section.
    (c) Equipment and Materials for Energy Efficiency Measures.--No 
limitation on the percentage of funding that may be used for the 
purchase and installation of equipment and materials for energy 
efficiency measures under grants provided under part D of title III of 
the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.) shall 
apply to assistance provided under this section.

SEC. 7007. INAPPLICABILITY OF LIMITATION.

    The limitations in section 399A(f)(2), (3), and (4) of the Energy 
Policy and Conservation Act (42 U.S.C. 6371h-1(f)(2), (3), and (4)) 
shall not apply to grants funded with appropriations provided by this 
Act, except that such grant funds shall be available for not more than 
an amount equal to 80 percent of the costs of the project for which the 
grant is provided.
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