`[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1 Enrolled Bill (ENR)]

        H.R.1

                      One Hundred Eleventh Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
             the sixth day of January, two thousand and nine


                                 An Act


 
 Making supplemental appropriations for job preservation and creation, 
infrastructure investment, energy efficiency and science, assistance to 
the unemployed, and State and local fiscal stabilization, for the fiscal 
         year ending September 30, 2009, and for other purposes.

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

SECTION 1. SHORT TITLE.

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

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

                  DIVISION A--APPROPRIATIONS PROVISIONS

TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, 
          AND RELATED AGENCIES
TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES
TITLE III--DEPARTMENT OF DEFENSE
TITLE IV--ENERGY AND WATER DEVELOPMENT
TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT
TITLE VI--DEPARTMENT OF HOMELAND SECURITY
TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES
TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND 
          EDUCATION, AND RELATED AGENCIES
TITLE IX--LEGISLATIVE BRANCH
TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND RELATED AGENCIES
TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS
TITLE XII--TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND RELATED 
          AGENCIES
TITLE XIII--HEALTH INFORMATION TECHNOLOGY
TITLE XIV--STATE FISCAL STABILIZATION FUND
TITLE XV--ACCOUNTABILITY AND TRANSPARENCY
TITLE XVI--GENERAL PROVISIONS--THIS ACT

 DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER 
                               PROVISIONS

TITLE I--TAX PROVISIONS
TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS
TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY; 
          MISCELLANEOUS MEDICARE PROVISIONS
TITLE V--STATE FISCAL RELIEF
TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM
TITLE VII--LIMITS ON EXECUTIVE COMPENSATION

SEC. 3. PURPOSES AND PRINCIPLES.

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

SEC. 4. REFERENCES.

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

SEC. 5. EMERGENCY DESIGNATIONS.

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

                 DIVISION A--APPROPRIATIONS PROVISIONS

    That the following sums are appropriated, out of any money in the 
Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 2009, and for other purposes, namely:

TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, 
                          AND RELATED AGENCIES

                       DEPARTMENT OF AGRICULTURE

        Agriculture Buildings and Facilities and Rental Payments

    For an additional amount for ``Agriculture Buildings and Facilities 
and Rental Payments'', $24,000,000, for necessary construction, repair, 
and improvement activities.

                      office of inspector general

    For an additional amount for ``Office of Inspector General'', 
$22,500,000, to remain available until September 30, 2013, for 
oversight and audit of programs, grants, and activities funded by this 
Act and administered by the Department of Agriculture.

                     Agricultural Research Service

                        buildings and facilities

    For an additional amount for ``Buildings and Facilities'', 
$176,000,000, for work on deferred maintenance at Agricultural Research 
Service facilities: Provided, That priority in the use of such funds 
shall be given to critical deferred maintenance, to projects that can 
be completed, and to activities that can commence promptly following 
enactment of this Act.

                          Farm Service Agency

                         salaries and expenses

    For an additional amount for ``Farm Service Agency, Salaries and 
Expenses,'' $50,000,000, for the purpose of maintaining and modernizing 
the information technology system.

                 Natural Resources Conservation Service

               watershed and flood prevention operations

     For an additional amount for ``Watershed and Flood Prevention 
Operations'', $290,000,000, of which $145,000,000 is for necessary 
expenses to purchase and restore floodplain easements as authorized by 
section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) 
(except that no more than $30,000,000 of the amount provided for the 
purchase of floodplain easements may be obligated for projects in any 
one State): Provided, That such funds shall be allocated to projects 
that can be fully funded and completed with the funds appropriated in 
this Act, and to activities that can commence promptly following 
enactment of this Act.

                    watershed rehabilitation program

    For an additional amount for ``Watershed Rehabilitation Program'', 
$50,000,000: Provided, That such funds shall be allocated to projects 
that can be fully funded and completed with the funds appropriated in 
this Act, and to activities that can commence promptly following 
enactment of this Act.

                         Rural Housing Service

              rural housing insurance fund program account

    For an additional amount for gross obligations for the principal 
amount of direct and guaranteed loans as authorized by title V of the 
Housing Act of 1949, to be available from funds in the rural housing 
insurance fund, as follows: $1,000,000,000 for section 502 direct 
loans; and $10,472,000,000 for section 502 unsubsidized guaranteed 
loans.
    For an additional amount for the cost of direct and guaranteed 
loans, including the cost of modifying loans, as defined in section 502 
of the Congressional Budget Act of 1974, as follows: $67,000,000 for 
section 502 direct loans; and $133,000,000 for section 502 unsubsidized 
guaranteed loans.

               rural community facilities program account

    For an additional amount for the cost of direct loans and grants 
for rural community facilities programs as authorized by section 306 
and described in section 381E(d)(1) of the Consolidated Farm and Rural 
Development Act, $130,000,000.

                  Rural Business--cooperative Service

                     rural business program account

    For an additional amount for the cost of guaranteed loans and 
grants as authorized by sections 310B(a)(2)(A) and 310B(c) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1932), 
$150,000,000.

                        Rural Utilities Service

             rural water and waste disposal program account

    For an additional amount for the cost of direct loans and grants 
for the rural water, waste water, and waste disposal programs 
authorized by sections 306 and 310B and described in section 381E(d)(2) 
of the Consolidated Farm and Rural Development Act, $1,380,000,000.

         distance learning, telemedicine, and broadband program

     For an additional amount for the cost of broadband loans and loan 
guarantees, as authorized by the Rural Electrification Act of 1936 (7 
U.S.C. 901 et seq.) and for grants (including for technical 
assistance), $2,500,000,000: Provided, That the cost of direct and 
guaranteed loans shall be as defined in section 502 of the 
Congressional Budget Act of 1974: Provided further, That, 
notwithstanding title VI of the Rural Electrification Act of 1936, this 
amount is available for grants, loans and loan guarantees for broadband 
infrastructure in any area of the United States: Provided further, That 
at least 75 percent of the area to be served by a project receiving 
funds from such grants, loans or loan guarantees shall be in a rural 
area without sufficient access to high speed broadband service to 
facilitate rural economic development, as determined by the Secretary 
of Agriculture: Provided further, That priority for awarding such funds 
shall be given to project applications for broadband systems that will 
deliver end users a choice of more than one service provider: Provided 
further, That priority for awarding funds made available under this 
paragraph shall be given to projects that provide service to the 
highest proportion of rural residents that do not have access to 
broadband service: Provided further, That priority shall be given for 
project applications from borrowers or former borrowers under title II 
of the Rural Electrification Act of 1936 and for project applications 
that include such borrowers or former borrowers: Provided further, That 
priority for awarding such funds shall be given to project applications 
that demonstrate that, if the application is approved, all project 
elements will be fully funded: Provided further, That priority for 
awarding such funds shall be given to project applications for 
activities that can be completed if the requested funds are provided: 
Provided further, That priority for awarding such funds shall be given 
to activities that can commence promptly following approval: Provided 
further, That no area of a project funded with amounts made available 
under this paragraph may receive funding to provide broadband service 
under the Broadband Technology Opportunities Program: Provided further, 
That the Secretary shall submit a report on planned spending and actual 
obligations describing the use of these funds not later than 90 days 
after the date of enactment of this Act, and quarterly thereafter until 
all funds are obligated, to the Committees on Appropriations of the 
House of Representatives and the Senate.

          FOOD AND NUTRITION SERVICE CHILD NUTRITION PROGRAMS

    For an additional amount for the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1751 et. seq.), except section 21, and the Child 
Nutrition Act of 1966 (42 U.S.C. 1771 et. seq.), except sections 17 and 
21, $100,000,000, to carry out a grant program for National School 
Lunch Program equipment assistance: Provided, That such funds shall be 
provided to States administering a school lunch program in a manner 
proportional with each States' administrative expense allocation: 
Provided further, That the States shall provide competitive grants to 
school food authorities based upon the need for equipment assistance in 
participating schools with priority given to school in which not less 
than 50 percent of the students are eligible for free or reduced price 
meals under the Richard B. Russell National School Lunch Act.

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

    For an additional amount for the special supplemental nutrition 
program as authorized by section 17 of the Child Nutrition Act of 1966 
(42 U.S.C. 1786), $500,000,000, of which $400,000,000 shall be placed 
in reserve to be allocated as the Secretary deems necessary, 
notwithstanding section 17(i) of such Act, to support participation 
should cost or participation exceed budget estimates, and of which 
$100,000,000 shall be for the purposes specified in section 
17(h)(10)(B)(ii): Provided, That up to one percent of the funding 
provided for the purposes specified in section 17(h)(10)(B)(ii) may be 
reserved by the Secretary for Federal administrative activities in 
support of those purposes.

                      commodity assistance program

    For an additional amount for the emergency food assistance program 
as authorized by section 27(a) of the Food and Nutrition Act of 2008 (7 
U.S.C. 2036(a)) and section 204(a)(1) of the Emergency Food Assistance 
Act of 1983 (7 U.S.C. 7508(a)(1)), $150,000,000: Provided, That of the 
funds made available, the Secretary may use up to $50,000,000 for costs 
associated with the distribution of commodities, of which up to 
$25,000,000 shall be made available in fiscal year 2009.

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 101. Temporary Increase in Benefits Under the Supplemental 
Nutrition Assistance Program. (a) Maximum Benefit Increase.--
        (1) In general.--Beginning the first month that begins not less 
    than 25 days after the date of enactment of this Act, the value of 
    benefits determined under section 8(a) of the Food and Nutrition 
    Act of 2008 and consolidated block grants for Puerto Rico and 
    American Samoa determined under section 19(a) of such Act shall be 
    calculated using 113.6 percent of the June 2008 value of the 
    thrifty food plan as specified under section 3(o) of such Act.
        (2) Termination.--
            (A) The authority provided by this subsection shall 
        terminate after September 30, 2009.
            (B) Notwithstanding subparagraph (A), the Secretary of 
        Agriculture may not reduce the value of the maximum allotments, 
        minimum allotments or consolidated block grants for Puerto Rico 
        and American Samoa below the level in effect for fiscal year 
        2009 as a result of paragraph (1).
    (b) Requirements for the Secretary.--In carrying out this section, 
the Secretary shall--
        (1) consider the benefit increases described in subsection (a) 
    to be a ``mass change'';
        (2) require a simple process for States to notify households of 
    the increase in benefits;
        (3) consider section 16(c)(3)(A) of the Food and Nutrition Act 
    of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply to any errors in the 
    implementation of this section, without regard to the 120-day limit 
    described in that section;
        (4) disregard the additional amount of benefits that a 
    household receives as a result of this section in determining the 
    amount of overissuances under section 13 of the Food and Nutrition 
    Act of 2008 (7 U.S.C. 2022); and
        (5) set the tolerance level for excluding small errors for the 
    purposes of section 16(c) of the Food and Nutrition Act of 2008 (7 
    U.S.C. 2025(c)) at $50 through September 30, 2009.
    (c) Administrative Expenses.--
        (1) In general.--For the costs of State administrative expenses 
    associated with carrying out this section and administering the 
    supplemental nutrition assistance program established under the 
    Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), the 
    Secretary shall make available $145,000,000 in fiscal year 2009 and 
    $150,000,000 in fiscal year 2010, of which $4,500,000 is for 
    necessary expenses of the Food and Nutrition Service for management 
    and oversight of the program and for monitoring the integrity and 
    evaluating the effects of the payments made under this section.
        (2) Timing for fiscal year 2009.--Not later than 60 days after 
    the date of enactment of this Act, the Secretary shall make 
    available to States amounts for fiscal year 2009 under paragraph 
    (1).
        (3) Allocation of funds.--Except as provided for management and 
    oversight, funds described in paragraph (1) shall be made available 
    as grants to State agencies for each fiscal year as follows:
            (A) 75 percent of the amounts available for each fiscal 
        year shall be allocated to States based on the share of each 
        State of households that participate in the supplemental 
        nutrition assistance program as reported to the Department of 
        Agriculture for the most recent 12-month period for which data 
        are available, adjusted by the Secretary (as of the date of 
        enactment) for participation in disaster programs under section 
        5(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(h)); 
        and
            (B) 25 percent of the amounts available for each fiscal 
        year shall be allocated to States based on the increase in the 
        number of households that participate in the supplemental 
        nutrition assistance program as reported to the Department of 
        Agriculture over the most recent 12-month period for which data 
        are available, adjusted by the Secretary (as of the date of 
        enactment) for participation in disaster programs under section 
        5(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(h)).
    (d) Food Distribution Program on Indian Reservations.--For the 
costs relating to facility improvements and equipment upgrades 
associated with the Food Distribution Program on Indian Reservations, 
as established under section 4(b) of the Food and Nutrition Act of 2008 
(7 U.S.C. 2013(b)), the Secretary shall make available $5,000,000: 
Provided, That administrative cost-sharing requirements are not 
applicable to funds provided in accordance with this provision.
    (e) Treatment of Jobless Workers.--
        (1) Remainder of fiscal year 2009 through fiscal year 2010.--
    Beginning with the first month that begins not less than 25 days 
    after the date of enactment of this Act and for each subsequent 
    month through September 30, 2010, eligibility for supplemental 
    nutrition assistance program benefits shall not be limited under 
    section 6(o)(2) of the Food and Nutrition Act of 2008 unless an 
    individual does not comply with the requirements of a program 
    offered by the State agency that meets the standards of 
    subparagraphs (B) or (C) of that paragraph.
        (2) Fiscal year 2011 and thereafter.--Beginning on October 1, 
    2010, for the purposes of section 6(o) of the Food and Nutrition 
    Act of 2008 (7 U.S.C. 2015(o)), a State agency shall disregard any 
    period during which an individual received benefits under the 
    supplemental nutrition assistance program prior to October 1, 2010.
    (f)  Funding.--There are appropriated to the Secretary out of funds 
of the Treasury not otherwise appropriated such sums as are necessary 
to carry out this section.
    Sec. 102. Agricultural Disaster Assistance Transition. (a) Federal 
Crop Insurance Act. Section 531(g) of the Federal Crop Insurance Act (7 
U.S.C. 1531(g)) is amended by adding at the end the following:
        ``(7) 2008 transition assistance.--
            ``(A) In general.--Eligible producers on a farm described 
        in subparagraph (A) of paragraph (4) that failed to timely pay 
        the appropriate fee described in that subparagraph shall be 
        eligible for assistance under this section in accordance with 
        subparagraph (B) if the eligible producers on the farm--
                ``(i) pay the appropriate fee described in paragraph 
            (4)(A) not later than 90 days after the date of enactment 
            of this paragraph; and
                ``(ii)(I) in the case of each insurable commodity of 
            the eligible producers on the farm, excluding grazing land, 
            agree to obtain a policy or plan of insurance under 
            subtitle A (excluding a crop insurance pilot program under 
            that subtitle) for the next insurance year for which crop 
            insurance is available to the eligible producers on the 
            farm at a level of coverage equal to 70 percent or more of 
            the recorded or appraised average yield indemnified at 100 
            percent of the expected market price, or an equivalent 
            coverage; and
                ``(II) in the case of each noninsurable commodity of 
            the eligible producers on the farm, agree to file the 
            required paperwork, and pay the administrative fee by the 
            applicable State filing deadline, for the noninsured crop 
            assistance program for the next year for which a policy is 
            available.
            ``(B) Amount of assistance.--Eligible producers on a farm 
        that meet the requirements of subparagraph (A) shall be 
        eligible to receive assistance under this section as if the 
        eligible producers on the farm--
                ``(i) in the case of each insurable commodity of the 
            eligible producers on the farm, had obtained a policy or 
            plan of insurance for the 2008 crop year at a level of 
            coverage not to exceed 70 percent or more of the recorded 
            or appraised average yield indemnified at 100 percent of 
            the expected market price, or an equivalent coverage; and
                ``(ii) in the case of each noninsurable commodity of 
            the eligible producers on the farm, had filed the required 
            paperwork, and paid the administrative fee by the 
            applicable State filing deadline, for the noninsured crop 
            assistance program for the 2008 crop year, except that in 
            determining the level of coverage, the Secretary shall use 
            70 percent of the applicable yield.
            ``(C) Equitable relief.--Except as provided in subparagraph 
        (D), eligible producers on a farm that met the requirements of 
        paragraph (1) before the deadline described in paragraph (4)(A) 
        and are eligible to receive, a disaster assistance payment 
        under this section for a production loss during the 2008 crop 
        year shall be eligible to receive an amount equal to the 
        greater of--
                ``(i) the amount that would have been calculated under 
            subparagraph (B) if the eligible producers on the farm had 
            paid the appropriate fee under that subparagraph; or
                ``(ii) the amount that would have been calculated under 
            subparagraph (A) of subsection (b)(3) if--

                    ``(I) in clause (i) of that subparagraph, `120 
                percent' is substituted for `115 percent'; and
                    ``(II) in clause (ii) of that subparagraph, `125' 
                is substituted for `120 percent'.

            ``(D) Limitation.--For amounts made available under this 
        paragraph, the Secretary may make such adjustments as are 
        necessary to ensure that no producer receives a payment under 
        this paragraph for an amount in excess of the assistance 
        received by a similarly situated producer that had purchased 
        the same or higher level of crop insurance prior to the date of 
        enactment of this paragraph.
            ``(E) Authority of the secretary.--The Secretary may 
        provide such additional assistance as the Secretary considers 
        appropriate to provide equitable treatment for eligible 
        producers on a farm that suffered production losses in the 2008 
        crop year that result in multiyear production losses, as 
        determined by the Secretary.
            ``(F) Lack of access.--Notwithstanding any other provision 
        of this section, the Secretary may provide assistance under 
        this section to eligible producers on a farm that--
                ``(i) suffered a production loss due to a natural cause 
            during the 2008 crop year; and
                ``(ii) as determined by the Secretary--

                    ``(I)(aa) except as provided in item (bb), lack 
                access to a policy or plan of insurance under subtitle 
                A; or
                    ``(bb) do not qualify for a written agreement 
                because 1 or more farming practices, which the 
                Secretary has determined are good farming practices, of 
                the eligible producers on the farm differ significantly 
                from the farming practices used by producers of the 
                same crop in other regions of the United States; and
                    ``(II) are not eligible for the noninsured crop 
                disaster assistance program established by section 196 
                of the Federal Agriculture Improvement and Reform Act 
                of 1996 (7 U.S.C. 7333).''.

    (b) Trade Act of 1974.--Section 901(g) of the Trade Act of 1974 (19 
U.S.C. 2497(g)) is amended by adding at the end the following:
        ``(7) 2008 transition assistance.--
            ``(A) In general.--Eligible producers on a farm described 
        in subparagraph (A) of paragraph (4) that failed to timely pay 
        the appropriate fee described in that subparagraph shall be 
        eligible for assistance under this section in accordance with 
        subparagraph (B) if the eligible producers on the farm--
                ``(i) pay the appropriate fee described in paragraph 
            (4)(A) not later than 90 days after the date of enactment 
            of this paragraph; and
                ``(ii)(I) in the case of each insurable commodity of 
            the eligible producers on the farm, excluding grazing land, 
            agree to obtain a policy or plan of insurance under the 
            Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) 
            (excluding a crop insurance pilot program under that Act) 
            for the next insurance year for which crop insurance is 
            available to the eligible producers on the farm at a level 
            of coverage equal to 70 percent or more of the recorded or 
            appraised average yield indemnified at 100 percent of the 
            expected market price, or an equivalent coverage; and
                ``(II) in the case of each noninsurable commodity of 
            the eligible producers on the farm, agree to file the 
            required paperwork, and pay the administrative fee by the 
            applicable State filing deadline, for the noninsured crop 
            assistance program for the next year for which a policy is 
            available.
            ``(B) Amount of assistance.--Eligible producers on a farm 
        that meet the requirements of subparagraph (A) shall be 
        eligible to receive assistance under this section as if the 
        eligible producers on the farm--
                ``(i) in the case of each insurable commodity of the 
            eligible producers on the farm, had obtained a policy or 
            plan of insurance for the 2008 crop year at a level of 
            coverage not to exceed 70 percent or more of the recorded 
            or appraised average yield indemnified at 100 percent of 
            the expected market price, or an equivalent coverage; and
                ``(ii) in the case of each noninsurable commodity of 
            the eligible producers on the farm, had filed the required 
            paperwork, and paid the administrative fee by the 
            applicable State filing deadline, for the noninsured crop 
            assistance program for the 2008 crop year, except that in 
            determining the level of coverage, the Secretary shall use 
            70 percent of the applicable yield.
            ``(C) Equitable relief.--Except as provided in subparagraph 
        (D), eligible producers on a farm that met the requirements of 
        paragraph (1) before the deadline described in paragraph (4)(A) 
        and are eligible to receive, a disaster assistance payment 
        under this section for a production loss during the 2008 crop 
        year shall be eligible to receive an amount equal to the 
        greater of--
                ``(i) the amount that would have been calculated under 
            subparagraph (B) if the eligible producers on the farm had 
            paid the appropriate fee under that subparagraph; or
                ``(ii) the amount that would have been calculated under 
            subparagraph (A) of subsection (b)(3) if--

                    ``(I) in clause (i) of that subparagraph, `120 
                percent' is substituted for `115 percent'; and
                    ``(II) in clause (ii) of that subparagraph, `125' 
                is substituted for `120 percent'.

            ``(D) Limitation.--For amounts made available under this 
        paragraph, the Secretary may make such adjustments as are 
        necessary to ensure that no producer receives a payment under 
        this paragraph for an amount in excess of the assistance 
        received by a similarly situated producer that had purchased 
        the same or higher level of crop insurance prior to the date of 
        enactment of this paragraph.
            ``(E) Authority of the secretary.--The Secretary may 
        provide such additional assistance as the Secretary considers 
        appropriate to provide equitable treatment for eligible 
        producers on a farm that suffered production losses in the 2008 
        crop year that result in multiyear production losses, as 
        determined by the Secretary.
            ``(F) Lack of access.--Notwithstanding any other provision 
        of this section, the Secretary may provide assistance under 
        this section to eligible producers on a farm that--
                ``(i) suffered a production loss due to a natural cause 
            during the 2008 crop year; and
                ``(ii) as determined by the Secretary--

                    ``(I)(aa) except as provided in item (bb), lack 
                access to a policy or plan of insurance under subtitle 
                A; or
                    ``(bb) do not qualify for a written agreement 
                because 1 or more farming practices, which the 
                Secretary has determined are good farming practices, of 
                the eligible producers on the farm differ significantly 
                from the farming practices used by producers of the 
                same crop in other regions of the United States; and
                    ``(II) are not eligible for the noninsured crop 
                disaster assistance program established by section 196 
                of the Federal Agriculture Improvement and Reform Act 
                of 1996 (7 U.S.C. 7333).''.

    (c) Farm Operating Loans.--
        (1) In general.--For the principal amount of direct farm 
    operating loans under section 311 of the Consolidated Farm and 
    Rural Development Act (7 U.S.C. 1941), $173,367,000.
        (2) Direct farm operating loans.--For the cost of direct farm 
    operating loans, including the cost of modifying loans, as defined 
    in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 
    661a), $20,440,000.
    (d) 2008 Aquaculture Assistance.--
        (1) Definitions.--In this subsection:
            (A) Eligible aquaculture producer.--The term ``eligible 
        aquaculture producer'' means an aquaculture producer that 
        during the 2008 calendar year, as determined by the Secretary--
                (i) produced an aquaculture species for which feed 
            costs represented a substantial percentage of the input 
            costs of the aquaculture operation; and
                (ii) experienced a substantial price increase of feed 
            costs above the previous 5-year average.
            (B) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
        (2) Grant program.--
            (A) In general.--Of the funds of the Commodity Credit 
        Corporation, the Secretary shall use not more than $50,000,000, 
        to remain available until September 30, 2010, to carry out a 
        program of grants to States to assist eligible aquaculture 
        producers for losses associated with high feed input costs 
        during the 2008 calendar year.
            (B) Notification.--Not later than 60 days after the date of 
        enactment of this Act, the Secretary shall notify the State 
        department of agriculture (or similar entity) in each State of 
        the availability of funds to assist eligible aquaculture 
        producers, including such terms as determined by the Secretary 
        to be necessary for the equitable treatment of eligible 
        aquaculture producers.
            (C) Provision of grants.--
                (i) In general.--The Secretary shall make grants to 
            States under this subsection on a pro rata basis based on 
            the amount of aquaculture feed used in each State during 
            the 2007 calendar year, as determined by the Secretary.
                (ii) Timing.--Not later than 120 days after the date of 
            enactment of this Act, the Secretary shall make grants to 
            States to provide assistance under this subsection.
            (D) Requirements.--The Secretary shall make grants under 
        this subsection only to States that demonstrate to the 
        satisfaction of the Secretary that the State will--
                (i) use grant funds to assist eligible aquaculture 
            producers;
                (ii) provide assistance to eligible aquaculture 
            producers not later than 60 days after the date on which 
            the State receives grant funds; and
                (iii) not later than 30 days after the date on which 
            the State provides assistance to eligible aquaculture 
            producers, submit to the Secretary a report that 
            describes--

                    (I) the manner in which the State provided 
                assistance;
                    (II) the amounts of assistance provided per species 
                of aquaculture; and
                    (III) the process by which the State determined the 
                levels of assistance to eligible aquaculture producers.

        (3) Reduction in payments.--An eligible aquaculture producer 
    that receives assistance under this subsection shall not be 
    eligible to receive any other assistance under the supplemental 
    agricultural disaster assistance program established under section 
    531 of the Federal Crop Insurance Act (7 U.S.C. 1531) and section 
    901 of the Trade Act of 1974 (19 U.S.C. 2497) for any losses in 
    2008 relating to the same species of aquaculture.
        (4) Report to congress.--Not later than 180 days after the date 
    of enactment of this Act, the Secretary shall submit to the 
    appropriate committees of Congress a report that--
            (A) describes in detail the manner in which this subsection 
        has been carried out; and
            (B) includes the information reported to the Secretary 
        under paragraph (2)(D)(iii).
    Sec. 103. For fiscal years 2009 and 2010, in the case of each 
program established or amended by the Food, Conservation, and Energy 
Act of 2008 (Public Law 110-246), other than by title I of such Act, 
that is authorized or required to be carried out using funds of the 
Commodity Credit Corporation--
        (1) such funds shall be available for the purpose of covering 
    salaries and related administrative expenses, including technical 
    assistance, associated with the implementation of the program, 
    without regard to the limitation on the total amount of allotments 
    and fund transfers contained in section 11 of the Commodity Credit 
    Corporation Charter Act (15 U.S.C. 714i); and
        (2) the use of such funds for such purpose shall not be 
    considered to be a fund transfer or allotment for purposes of 
    applying the limitation on the total amount of allotments and fund 
    transfers contained in such section.
    Sec. 104. In addition to other available funds, of the funds made 
available to the Rural Development mission area in this title, not more 
than 3 percent of the funds can be used for administrative costs to 
carry out loan, loan guarantee and grant activities funded in this 
title, which shall be transferred to and merged with the appropriation 
for ``Rural Development, Salaries and Expenses'': Provided, That of 
this amount $1,750,000 shall be committed to agency projects associated 
with maintaining the compliance, safety, and soundness of the portfolio 
of loans guaranteed through the section 502 guaranteed loan program.
    Sec. 105. Of the amounts appropriated in this title to the ``Rural 
Housing Service, Rural Community Facilities Program Account'', the 
``Rural Business-Cooperative Service, Rural Business Program Account'', 
and the "Rural Utilities Service, Rural Water and Waste Disposal 
Program Account'', at least 10 percent shall be allocated for 
assistance in persistent poverty counties: Provided, That for the 
purposes of this section, the term ``persistent poverty counties'' 
means any county that has had 20 percent or more of its population 
living in poverty over the past 30 years, as measured by the 1980, 
1990, and 2000 decennial censuses.

       TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES

                         DEPARTMENT OF COMMERCE

                  Economic Development Administration

                economic development assistance programs

    For an additional amount for ``Economic Development Assistance 
Programs'', $150,000,000: Provided, That $50,000,000 shall be for 
economic adjustment assistance as authorized by section 209 of the 
Public Works and Economic Development Act of 1965, as amended (42 
U.S.C. 3149): Provided further, That in allocating the funds provided 
in the previous proviso, the Secretary of Commerce shall give priority 
consideration to areas of the Nation that have experienced sudden and 
severe economic dislocation and job loss due to corporate 
restructuring: Provided further, That not to exceed 2 percent of the 
funds provided under this heading may be transferred to and merged with 
the appropriation for ``Salaries and Expenses'' for purposes of program 
administration and oversight: Provided further, That up to $50,000,000 
of the funds provided under this heading may be transferred to 
federally authorized regional economic development commissions.

                          Bureau of the Census

                     periodic censuses and programs

    For an additional amount for ``Periodic Censuses and Programs'', 
$1,000,000,000.

       National Telecommunications and Information Administration

               broadband technology opportunities program

    For an amount for ``Broadband Technology Opportunities Program'', 
$4,700,000,000: Provided, That of the funds provided under this 
heading, not less than $4,350,000,000 shall be expended pursuant to 
division B of this Act, of which: not less than $200,000,000 shall be 
available for competitive grants for expanding public computer center 
capacity, including at community colleges and public libraries; not 
less than $250,000,000 shall be available for competitive grants for 
innovative programs to encourage sustainable adoption of broadband 
service; and $10,000,000 shall be transferred to ``Department of 
Commerce, Office of Inspector General'' for the purposes of audits and 
oversight of funds provided under this heading and such funds shall 
remain available until expended: Provided further, That of the funds 
provided under this heading, up to $350,000,000 may be expended 
pursuant to Public Law 110-385 (47 U.S.C. 1301 note) and for the 
purposes of developing and maintaining a broadband inventory map 
pursuant to division B of this Act: Provided further, That of the funds 
provided under this heading, amounts deemed necessary and appropriate 
by the Secretary of Commerce, in consultation with the Federal 
Communications Commission (FCC), may be transferred to the FCC for the 
purposes of developing a national broadband plan or for carrying out 
any other FCC responsibilities pursuant to division B of this Act, and 
only if the Committees on Appropriations of the House and the Senate 
are notified not less than 15 days in advance of the transfer of such 
funds: Provided further, That not more than 3 percent of funds provided 
under this heading may be used for administrative costs, and this 
limitation shall apply to funds which may be transferred to the FCC.

                digital-to-analog converter box program

    For an amount for ``Digital-to-Analog Converter Box Program'', 
$650,000,000, for additional coupons and related activities under the 
program implemented under section 3005 of the Digital Television 
Transition and Public Safety Act of 2005: Provided, That of the amounts 
provided under this heading, $90,000,000 may be for education and 
outreach, including grants to organizations for programs to educate 
vulnerable populations, including senior citizens, minority 
communities, people with disabilities, low-income individuals, and 
people living in rural areas, about the transition and to provide one-
on-one assistance to vulnerable populations, including help with 
converter box installation: Provided further, That the amounts provided 
in the previous proviso may be transferred to the Federal 
Communications Commission (FCC) if deemed necessary and appropriate by 
the Secretary of Commerce in consultation with the FCC, and only if the 
Committees on Appropriations of the House and the Senate are notified 
not less than 5 days in advance of transfer of such funds.

             National Institute of Standards and Technology

             scientific and technical research and services

     For an additional amount for ``Scientific and Technical Research 
and Services'', $220,000,000.

                  construction of research facilities

    For an additional amount for ``Construction of Research 
Facilities'', $360,000,000, of which $180,000,000 shall be for a 
competitive construction grant program for research science buildings.

            National Oceanic and Atmospheric Administration

                  operations, research, and facilities

    For an additional amount for ``Operations, Research, and 
Facilities'', $230,000,000.

               procurement, acquisition and construction

    For an additional amount for ``Procurement, Acquisition and 
Construction'', $600,000,000.

                      Office of Inspector General

    For an additional amount for ``Office of Inspector General'', 
$6,000,000, to remain available until September 30, 2013.

                         DEPARTMENT OF JUSTICE

                         General Administration


                       Office of Inspector General

    For an additional amount for ``Office of Inspector General'', 
$2,000,000, to remain available until September 30, 2013.

               State and Local Law Enforcement Activities

                    Office on Violence Against Women

       violence against women prevention and prosecution programs

    For an additional amount for ``Violence Against Women Prevention 
and Prosecution Programs'', $225,000,000 for grants to combat violence 
against women, as authorized by part T of the Omnibus Crime Control and 
Safe Streets Act of 1968 (42 U.S.C. 3796gg et seq.): Provided, That, 
$50,000,000 shall be for transitional housing assistance grants for 
victims of domestic violence, stalking or sexual assault as authorized 
by section 40299 of the Violent Crime Control and Law Enforcement Act 
of 1994 (Public Law 103-322).

                       Office of Justice Programs

               state and local law enforcement assistance

    For an additional amount for ``State and Local Law Enforcement 
Assistance'', $2,000,000,000, for the Edward Byrne Memorial Justice 
Assistance Grant program as authorized by subpart 1 of part E of title 
I of the Omnibus Crime Control and Safe Streets Acts of 1968 (``1968 
Act''), (except that section 1001(c), and the special rules for Puerto 
Rico under section 505(g), of the 1968 Act, shall not apply for 
purposes of this Act).
    For an additional amount for ``State and Local Law Enforcement 
Assistance'', $225,000,000, for competitive grants to improve the 
functioning of the criminal justice system, to assist victims of crime 
(other than compensation), and youth mentoring grants.
    For an additional amount for ``State and Local Law Enforcement 
Assistance'', $40,000,000, for competitive grants to provide assistance 
and equipment to local law enforcement along the Southern border and in 
High-Intensity Drug Trafficking Areas to combat criminal narcotics 
activity stemming from the Southern border, of which $10,000,000 shall 
be transferred to ``Bureau of Alcohol, Tobacco, Firearms and 
Explosives, Salaries and Expenses'' for the ATF Project Gunrunner.
    For an additional amount for ``State and Local Law Enforcement 
Assistance'', $225,000,000, for assistance to Indian tribes, 
notwithstanding Public Law 108-199, division B, title I, section 
112(a)(1) (118 Stat. 62), which shall be available for grants under 
section 20109 of subtitle A of title II of the Violent Crime Control 
and Law Enforcement Act of 1994 (Public Law 103-322).
    For an additional amount for ``State and Local Law Enforcement 
Assistance'', $100,000,000, to be distributed by the Office for Victims 
of Crime in accordance with section 1402(d)(4) of the Victims of Crime 
Act of 1984 (Public Law 98-473).
    For an additional amount for ``State and Local Law Enforcement 
Assistance'', $125,000,000, for assistance to law enforcement in rural 
States and rural areas, to prevent and combat crime, especially drug-
related crime.
    For an additional amount for ``State and Local Law Enforcement 
Assistance'', $50,000,000, for Internet Crimes Against Children (ICAC) 
initiatives.

                  Community Oriented Policing Services

    For an additional amount for ``Community Oriented Policing 
Services'', for grants under section 1701 of title I of the 1968 
Omnibus Crime Control and Safe Streets Act (42 U.S.C. 3796dd) for 
hiring and rehiring of additional career law enforcement officers under 
part Q of such title, notwithstanding subsection (i) of such section, 
$1,000,000,000.

                         Salaries and Expenses

    For an additional amount, not elsewhere specified in this title, 
for management and administration and oversight of programs within the 
Office on Violence Against Women, the Office of Justice Programs, and 
the Community Oriented Policing Services Office, $10,000,000.

                                SCIENCE

             National Aeronautics and Space Administration

                                science

    For an additional amount for ``Science'', $400,000,000.

                              aeronautics

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

                              exploration

    For an additional amount for ``Exploration'', $400,000,000.

                          cross agency support

    For an additional amount for ``Cross Agency Support'', $50,000,000.

                      office of inspector general

    For an additional amount for ``Office of Inspector General'', 
$2,000,000, to remain available until September 30, 2013.

                      National Science Foundation

                    research and related activities

     For an additional amount for ``Research and Related Activities'', 
$2,500,000,000: Provided, That $300,000,000 shall be available solely 
for the Major Research Instrumentation program and $200,000,000 shall 
be for activities authorized by title II of Public Law 100-570 for 
academic research facilities modernization.

                     education and human resources

     For an additional amount for ``Education and Human Resources'', 
$100,000,000.

          major research equipment and facilities construction

    For an additional amount for ``Major Research Equipment and 
Facilities Construction'', $400,000,000.

                      office of inspector general

    For an additional amount for ``Office of Inspector General'', 
$2,000,000, to remain available until September 30, 2013.

                     GENERAL PROVISION--THIS TITLE

    Sec. 201. Sections 1701(g) and 1704(c) of the Omnibus Crime Control 
and Safe Streets Act of 1968 (42 U.S.C. 3796dd(g) and 3796dd-3(c)) 
shall not apply with respect to funds appropriated in this or any other 
Act making appropriations for fiscal year 2009 or 2010 for Community 
Oriented Policing Services authorized under part Q of such Act of 1968.

                    TITLE III--DEPARTMENT OF DEFENSE

                       OPERATION AND MAINTENANCE

                    Operation and Maintenance, Army

    For an additional amount for ``Operation and Maintenance, Army'', 
$1,474,525,000, to remain available for obligation until September 30, 
2010, to improve, repair and modernize Department of Defense 
facilities, restore and modernize real property to include barracks, 
and invest in the energy efficiency of Department of Defense 
facilities.

                    Operation and Maintenance, Navy

    For an additional amount for ``Operation and Maintenance, Navy'', 
$657,051,000, to remain available for obligation until September 30, 
2010, to improve, repair and modernize Department of Defense 
facilities, restore and modernize real property to include barracks, 
and invest in the energy efficiency of Department of Defense 
facilities.

                Operation and Maintenance, Marine Corps

    For an additional amount for ``Operation and Maintenance, Marine 
Corps'', $113,865,000, to remain available for obligation until 
September 30, 2010, to improve, repair and modernize Department of 
Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of Defense 
facilities.

                  Operation and Maintenance, Air Force

    For an additional amount for ``Operation and Maintenance, Air 
Force'', $1,095,959,000, to remain available for obligation until 
September 30, 2010, to improve, repair and modernize Department of 
Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of Defense 
facilities.

                Operation and Maintenance, Army Reserve

    For an additional amount for ``Operation and Maintenance, Army 
Reserve'', $98,269,000, to remain available for obligation until 
September 30, 2010, to improve, repair and modernize Department of 
Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of Defense 
facilities.

                Operation and Maintenance, Navy Reserve

    For an additional amount for ``Operation and Maintenance, Navy 
Reserve'', $55,083,000, to remain available for obligation until 
September 30, 2010, to improve, repair and modernize Department of 
Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of Defense 
facilities.

            Operation and Maintenance, Marine Corps Reserve

    For an additional amount for ``Operation and Maintenance, Marine 
Corps Reserve'', $39,909,000, to remain available for obligation until 
September 30, 2010, to improve, repair and modernize Department of 
Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of Defense 
facilities.

              Operation and Maintenance, Air Force Reserve

    For an additional amount for ``Operation and Maintenance, Air Force 
Reserve'', $13,187,000, to remain available for obligation until 
September 30, 2010, to improve, repair and modernize Department of 
Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of Defense 
facilities.

             Operation and Maintenance, Army National Guard

    For an additional amount for ``Operation and Maintenance, Army 
National Guard'', $266,304,000, to remain available for obligation 
until September 30, 2010, to improve, repair and modernize Department 
of Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of Defense 
facilities.

             Operation and Maintenance, Air National Guard

    For an additional amount for ``Operation and Maintenance, Air 
National Guard'', $25,848,000, to remain available for obligation until 
September 30, 2010, to improve, repair and modernize Department of 
Defense facilities, restore and modernize real property to include 
barracks, and invest in the energy efficiency of Department of Defense 
facilities.

               RESEARCH, DEVELOPMENT, TEST AND EVALUATION

            Research, Development, Test and Evaluation, Army

    For an additional amount for ``Research, Development, Test and 
Evaluation, Army'', $75,000,000, to remain available for obligation 
until September 30, 2010.

            Research, Development, Test and Evaluation, Navy

    For an additional amount for ``Research, Development, Test and 
Evaluation, Navy'', $75,000,000, to remain available for obligation 
until September 30, 2010.

         Research, Development, Test and Evaluation, Air Force

    For an additional amount for ``Research, Development, Test and 
Evaluation, Air Force'', $75,000,000, to remain available for 
obligation until September 30, 2010.

        Research, Development, Test and Evaluation, Defense-Wide

    For an additional amount for ``Research, Development, Test and 
Evaluation, Defense-Wide'', $75,000,000, to remain available for 
obligation until September 30, 2010.

                  OTHER DEPARTMENT OF DEFENSE PROGRAMS

                         Defense Health Program

    For an additional amount for ``Defense Health Program'', 
$400,000,000 for operation and maintenance, to remain available for 
obligation until September 30, 2010, to improve, repair and modernize 
military medical facilities, and invest in the energy efficiency of 
military medical facilities.

                    Office of the Inspector General

    For an additional amount for ``Office of the Inspector General'', 
$15,000,000 for operation and maintenance, to remain available for 
obligation until September 30, 2011.

                 TITLE IV--ENERGY AND WATER DEVELOPMENT

                      DEPARTMENT OF DEFENSE--CIVIL

                         Department of the Army

                       Corps of Engineers--Civil

                             investigations

    For an additional amount for ``Investigations'', $25,000,000: 
Provided, That funds provided under this heading in this title shall 
only be used for programs, projects or activities that heretofore or 
hereafter receive funds provided in Acts making appropriations 
available for Energy and Water Development: Provided further, That 
funds provided under this heading in this title shall be used for 
programs, projects or activities or elements of programs, projects or 
activities that can be completed within the funds made available in 
that account and that will not require new budget authority to 
complete: Provided further, That for projects that are being completed 
with funds appropriated in this Act that would otherwise be expired for 
obligation, expired funds appropriated in this Act may be used to pay 
the cost of associated supervision, inspection, overhead, engineering 
and design on those projects and on subsequent claims, if any: Provided 
further, That the Secretary of the Army shall submit a quarterly report 
to the Committees on Appropriations of the House of Representatives and 
the Senate detailing the allocation, obligation and expenditures of 
these funds, beginning not later than 45 days after enactment of this 
Act: Provided further, That the Secretary shall have unlimited 
reprogramming authority for these funds provided under this heading.

                              construction

    For an additional amount for ``Construction'', $2,000,000,000: 
Provided, That not less than $200,000,000 of the funds provided shall 
be for water-related environmental infrastructure assistance: Provided 
further, That section 102 of Public Law 109-103 (33 U.S.C. 2221) shall 
not apply to funds provided in this title: Provided further, That 
notwithstanding any other provision of law, funds provided in this 
paragraph shall not be cost shared with the Inland Waterways Trust Fund 
as authorized in Public Law 99-662: Provided further, That funds 
provided under this heading in this title shall only be used for 
programs, projects or activities that heretofore or hereafter receive 
funds provided in Acts making appropriations available for Energy and 
Water Development: Provided further, That funds provided under this 
heading in this title shall be used for programs, projects or 
activities or elements of programs, projects or activities that can be 
completed within the funds made available in that account and that will 
not require new budget authority to complete: Provided further, That 
the limitation concerning total project costs in section 902 of the 
Water Resources Development Act of 1986, as amended (33 U.S.C. 2280), 
shall not apply during fiscal year 2009 to any project that received 
funds provided in this title: Provided further, That funds appropriated 
under this heading may be used by the Secretary of the Army, acting 
through the Chief of Engineers, to undertake work authorized to be 
carried out in accordance with section 14 of the Flood Control Act of 
1946 (33 U.S.C. 701r); section 205 of the Flood Control Act of 1948 (33 
U.S.C. 701s); section 206 of the Water Resources Development Act of 
1996 (33 U.S.C. 2330); or section 1135 of the Water Resources 
Development Act of 1986 (33 U.S.C. 2309a), notwithstanding the program 
cost limitations set forth in those sections: Provided further, That 
for projects that are being completed with funds appropriated in this 
Act that would otherwise be expired for obligation, expired funds 
appropriated in this Act may be used to pay the cost of associated 
supervision, inspection, overhead, engineering and design on those 
projects and on subsequent claims, if any: Provided further, That the 
Secretary of the Army shall submit a quarterly report to the Committees 
on Appropriations of the House of Representatives and the Senate 
detailing the allocation, obligation and expenditures of these funds, 
beginning not later than 45 days after enactment of this Act: Provided 
further, That the Secretary shall have unlimited reprogramming 
authority for these funds provided under this heading.

                   mississippi river and tributaries

    For an additional amount for ``Mississippi River and Tributaries'', 
$375,000,000: Provided, That funds provided under this heading in this 
title shall only be used for programs, projects or activities that 
heretofore or hereafter receive funds provided in Acts making 
appropriations available for Energy and Water Development: Provided 
further, That funds provided under this heading in this title shall be 
used for programs, projects or activities or elements of programs, 
projects or activities that can be completed within the funds made 
available in that account and that will not require new budget 
authority to complete: Provided further, That the limitation concerning 
total project costs in section 902 of the Water Resources Development 
Act of 1986, as amended (33 U.S.C. 2280), shall not apply during fiscal 
year 2009 to any project that received funds provided in this title: 
Provided further, That for projects that are being completed with funds 
appropriated in this Act that would otherwise be expired for 
obligation, expired funds appropriated in this Act may be used to pay 
the cost of associated supervision, inspection, overhead, engineering 
and design on those projects and on subsequent claims, if any: Provided 
further, That the Secretary of the Army shall submit a quarterly report 
to the Committees on Appropriations of the House of Representatives and 
the Senate detailing the allocation, obligation and expenditures of 
these funds, beginning not later than 45 days after enactment of this 
Act: Provided further, That the Secretary shall have unlimited 
reprogramming authority for these funds provided under this heading.

                       operation and maintenance

    For an additional amount for ``Operation and Maintenance'', 
$2,075,000,000: Provided, That funds provided under this heading in 
this title shall only be used for programs, projects or activities that 
heretofore or hereafter receive funds provided in Acts making 
appropriations available for Energy and Water Development: Provided 
further, That funds provided under this heading in this title shall be 
used for programs, projects or activities or elements of programs, 
projects or activities that can be completed within the funds made 
available in that account and that will not require new budget 
authority to complete: Provided further, That section 9006 of Public 
Law 110-114 shall not apply to funds provided in this title: Provided 
further, That for projects that are being completed with funds 
appropriated in this Act that would otherwise be expired for 
obligation, expired funds appropriated in this Act may be used to pay 
the cost of associated supervision, inspection, overhead, engineering 
and design on those projects and on subsequent claims, if any: Provided 
further, That the Secretary of the Army shall submit a quarterly report 
to the Committees on Appropriations of the House of Representatives and 
the Senate detailing the allocation, obligation and expenditures of 
these funds, beginning not later than 45 days after enactment of this 
Act: Provided further, That the Secretary shall have unlimited 
reprogramming authority for these funds provided under this heading.

                           regulatory program

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

            formerly utilized sites remedial action program

    For an additional amount for ``Formerly Utilized Sites Remedial 
Action Program'', $100,000,000: Provided, That funds provided under 
this heading in this title shall be used for programs, projects or 
activities or elements of programs, projects or activities that can be 
completed within the funds made available in that account and that will 
not require new budget authority to complete: Provided further, That 
for projects that are being completed with funds appropriated in this 
Act that would otherwise be expired for obligation, expired funds 
appropriated in this Act may be used to pay the cost of associated 
supervision, inspection, overhead, engineering and design on those 
projects and on subsequent claims, if any: Provided further, That the 
Secretary of the Army shall submit a quarterly report to the Committees 
on Appropriations of the House of Representatives and the Senate 
detailing the allocation, obligation and expenditures of these funds, 
beginning not later than 45 days after enactment of this Act: Provided 
further, That the Secretary shall have unlimited reprogramming 
authority for these funds provided under this heading.

                       DEPARTMENT OF THE INTERIOR

                         Bureau of Reclamation

                      water and related resources

    For an additional amount for ``Water and Related Resources'', 
$1,000,000,000: Provided, That of the amount appropriated under this 
heading, not less than $126,000,000 shall be used for water reclamation 
and reuse projects authorized under title XVI of Public Law 102-575: 
Provided further, That funds provided in this Act shall be used for 
elements of projects, programs or activities that can be completed 
within these funding amounts and not create budgetary obligations in 
future fiscal years: Provided further, That $50,000,000 of the funds 
provided under this heading may be transferred to the Department of the 
Interior for programs, projects and activities authorized by the 
Central Utah Project Completion Act (titles II-V of Public Law 102-
575): Provided further, That $50,000,000 of the funds provided under 
this heading may be used for programs, projects, and activities 
authorized by the California Bay-Delta Restoration Act (Public Law 108-
361): Provided further, That not less than $60,000,000 of the funds 
provided under this heading shall be used for rural water projects and 
shall be expended primarily on water intake and treatment facilities of 
such projects: Provided further, That not less than $10,000,000 of the 
funds provided under this heading shall be used for a bureau-wide 
inspection of canals program in urbanized areas: Provided further, That 
the costs of extraordinary maintenance and replacement activities 
carried out with funds provided in this Act shall be repaid pursuant to 
existing authority, except the length of repayment period shall be as 
determined by the Commissioner, but in no case shall the repayment 
period exceed 50 years and the repayment shall include interest, at a 
rate determined by the Secretary of the Treasury as of the beginning of 
the fiscal year in which the work is commenced, on the basis of average 
market yields on outstanding marketable obligations of the United 
States with the remaining periods of maturity comparable to the 
applicable reimbursement period of the project adjusted to the nearest 
one-eighth of 1 percent on the unamortized balance of any portion of 
the loan: Provided further, That for projects that are being completed 
with funds appropriated in this Act that would otherwise be expired for 
obligation, expired funds appropriated in this Act may be used to pay 
the cost of associated supervision, inspection, overhead, engineering 
and design on those projects and on subsequent claims, if any: Provided 
further, That the Secretary of the Interior shall submit a quarterly 
report to the Committees on Appropriations of the House of 
Representatives and the Senate detailing the allocation, obligation and 
expenditures of these funds, beginning not later than 45 days after 
enactment of this Act: Provided further, That the Secretary shall have 
unlimited reprogramming authority for these funds provided under this 
heading.

                          DEPARTMENT OF ENERGY

                            ENERGY PROGRAMS

                 Energy Efficiency and Renewable Energy

    For an additional amount for ``Energy Efficiency and Renewable 
Energy'', $16,800,000,000: Provided, That $3,200,000,000 shall be 
available for Energy Efficiency and Conservation Block Grants for 
implementation of programs authorized under subtitle E of title V of 
the Energy Independence and Security Act of 2007 (42 U.S.C. 17151 et 
seq.), of which $2,800,000,000 is available through the formula in 
subtitle E: Provided further, That the Secretary may use the most 
recent and accurate population data available to satisfy the 
requirements of section 543(b) of the Energy Independence and Security 
Act of 2007: Provided further, That the remaining $400,000,000 shall be 
awarded on a competitive basis: Provided further, That $5,000,000,000 
shall be for the Weatherization Assistance Program under part A of 
title IV of the Energy Conservation and Production Act (42 U.S.C. 6861 
et seq.): Provided further, That $3,100,000,000 shall be for the State 
Energy Program authorized under part D of title III of the Energy 
Policy and Conservation Act (42 U.S.C. 6321): Provided further, That 
$2,000,000,000 shall be available for grants for the manufacturing of 
advanced batteries and components and the Secretary shall provide 
facility funding awards under this section to manufacturers of advanced 
battery systems and vehicle batteries that are produced in the United 
States, including advanced lithium ion batteries, hybrid electrical 
systems, component manufacturers, and software designers: Provided 
further, That notwithstanding section 3304 of title 5, United States 
Code, and without regard to the provisions of sections 3309 through 
3318 of such title 5, the Secretary of Energy, upon a determination 
that there is a severe shortage of candidates or a critical hiring need 
for particular positions, may from within the funds provided, recruit 
and directly appoint highly qualified individuals into the competitive 
service: Provided further, That such authority shall not apply to 
positions in the Excepted Service or the Senior Executive Service: 
Provided further, That any action authorized herein shall be consistent 
with the merit principles of section 2301 of such title 5, and the 
Department shall comply with the public notice requirements of section 
3327 of such title 5.

              Electricity Delivery and Energy Reliability

    For an additional amount for ``Electricity Delivery and Energy 
Reliability,'' $4,500,000,000: Provided, That funds shall be available 
for expenses necessary for electricity delivery and energy reliability 
activities to modernize the electric grid, to include demand responsive 
equipment, enhance security and reliability of the energy 
infrastructure, energy storage research, development, demonstration and 
deployment, and facilitate recovery from disruptions to the energy 
supply, and for implementation of programs authorized under title XIII 
of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et 
seq.): Provided further, That $100,000,000 shall be available for 
worker training activities: Provided further, That notwithstanding 
section 3304 of title 5, United States Code, and without regard to the 
provisions of sections 3309 through 3318 of such title 5, the Secretary 
of Energy, upon a determination that there is a severe shortage of 
candidates or a critical hiring need for particular positions, may from 
within the funds provided, recruit and directly appoint highly 
qualified individuals into the competitive service: Provided further, 
That such authority shall not apply to positions in the Excepted 
Service or the Senior Executive Service: Provided further, That any 
action authorized herein shall be consistent with the merit principles 
of section 2301 of such title 5, and the Department shall comply with 
the public notice requirements of section 3327 of such title 5: 
Provided further, That for the purpose of facilitating the development 
of regional transmission plans, the Office of Electricity Delivery and 
Energy Reliability within the Department of Energy is provided 
$80,000,000 within the available funds to conduct a resource assessment 
and an analysis of future demand and transmission requirements after 
consultation with the Federal Energy Regulatory Commission: Provided 
further, That the Office of Electricity Delivery and Energy Reliability 
in coordination with the Federal Energy Regulatory Commission will 
provide technical assistance to the North American Electric Reliability 
Corporation, the regional reliability entities, the States, and other 
transmission owners and operators for the formation of interconnection-
based transmission plans for the Eastern and Western Interconnections 
and ERCOT: Provided further, That such assistance may include modeling, 
support to regions and States for the development of coordinated State 
electricity policies, programs, laws, and regulations: Provided 
further, That $10,000,000 is provided to implement section 1305 of 
Public Law 110-140: Provided further, That the Secretary of Energy may 
use or transfer amounts provided under this heading to carry out new 
authority for transmission improvements, if such authority is enacted 
in any subsequent Act, consistent with existing fiscal management 
practices and procedures.

                 Fossil Energy Research and Development

    For an additional amount for ``Fossil Energy Research and 
Development'', $3,400,000,000.

                   Non-Defense Environmental Cleanup

    For an additional amount for ``Non-Defense Environmental Cleanup'', 
$483,000,000.

      Uranium Enrichment Decontamination and Decommissioning Fund

    For an additional amount for ``Uranium Enrichment Decontamination 
and Decommissioning Fund'', $390,000,000, of which $70,000,000 shall be 
available in accordance with title X, subtitle A of the Energy Policy 
Act of 1992.

                                Science

    For an additional amount for ``Science'', $1,600,000,000.

               Advanced Research Projects Agency--Energy

    For the Advanced Research Projects Agency--Energy, $400,000,000, as 
authorized under section 5012 of the America COMPETES Act (42 U.S.C. 
16538).

         Title 17--Innovative Technology Loan Guarantee Program

    For an additional amount for the cost of guaranteed loans 
authorized by section 1705 of the Energy Policy Act of 2005, 
$6,000,000,000, available until expended, to pay the costs of 
guarantees made under this section: Provided, That of the amount 
provided for title XVII, $25,000,000 shall be used for administrative 
expenses in carrying out the guaranteed loan program: Provided further, 
That of the amounts provided for title XVII, $10,000,000 shall be 
transferred to and available for administrative expenses for the 
Advanced Technology Vehicles Manufacturing Loan Program.

                    Office of the Inspector General

    For necessary expenses of the Office of the Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, $15,000,000, to remain available until September 30, 2012.

               ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

                     Defense Environmental Cleanup

    For an additional amount for ``Defense Environmental Cleanup,'' 
$5,127,000,000.

Construction, Rehabilitation, Operation, and Maintenance, Western Area 
                          Power Administration

    For carrying out the functions authorized by title III, section 
302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. 7152), and other 
related activities including conservation and renewable resources 
programs as authorized, $10,000,000, to remain available until 
expended: Provided, That the Administrator shall establish such 
personnel staffing levels as he deems necessary to economically and 
efficiently complete the activities pursued under the authority granted 
by section 402 of this Act: Provided further, That this appropriation 
is non-reimbursable.

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 401.  Bonneville Power Administration Borrowing Authority. For 
the purposes of providing funds to assist in financing the 
construction, acquisition, and replacement of the transmission system 
of the Bonneville Power Administration and to implement the authority 
of the Administrator of the Bonneville Power Administration under the 
Pacific Northwest Electric Power Planning and Conservation Act (16 
U.S.C. 839 et seq.), an additional $3,250,000,000 in borrowing 
authority is made available under the Federal Columbia River 
Transmission System Act (16 U.S.C. 838 et seq.), to remain outstanding 
at any time.
    Sec. 402.  Western Area Power Administration Borrowing Authority. 
The Hoover Power Plant Act of 1984 (Public Law 98-381) is amended by 
adding at the end the following:

                    ``TITLE III--BORROWING AUTHORITY

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

    ``(a) Definitions.--In this section:
        ``(1) Administrator.--The term `Administrator' means the 
    Administrator of the Western Area Power Administration.
        ``(2) Secretary.--The term `Secretary' means the Secretary of 
    the Treasury.
    ``(b) Authority.--
        ``(1) In general.--Notwithstanding any other provision of law, 
    subject to paragraphs (2) through (5)--
            ``(A) the Western Area Power Administration may borrow 
        funds from the Treasury; and
            ``(B) the Secretary shall, without further appropriation 
        and without fiscal year limitation, loan to the Western Area 
        Power Administration, on such terms as may be fixed by the 
        Administrator and the Secretary, such sums (not to exceed, in 
        the aggregate (including deferred interest), $3,250,000,000 in 
        outstanding repayable balances at any one time) as, in the 
        judgment of the Administrator, are from time to time required 
        for the purpose of--
                ``(i) constructing, financing, facilitating, planning, 
            operating, maintaining, or studying construction of new or 
            upgraded electric power transmission lines and related 
            facilities with at least one terminus within the area 
            served by the Western Area Power Administration; and
                ``(ii) delivering or facilitating the delivery of power 
            generated by renewable energy resources constructed or 
            reasonably expected to be constructed after the date of 
            enactment of this section.
        ``(2) Interest.--The rate of interest to be charged in 
    connection with any loan made pursuant to this subsection shall be 
    fixed by the Secretary, taking into consideration market yields on 
    outstanding marketable obligations of the United States of 
    comparable maturities as of the date of the loan.
        ``(3) Refinancing.--The Western Area Power Administration may 
    refinance loans taken pursuant to this section within the Treasury.
        ``(4) Participation.--The Administrator may permit other 
    entities to participate in the financing, construction and 
    ownership projects financed under this section.
        ``(5) Congressional review of disbursement.--Effective upon the 
    date of enactment of this section, the Administrator shall have the 
    authority to have utilized $1,750,000,000 at any one time. If the 
    Administrator seeks to borrow funds above $1,750,000,000, the funds 
    will be disbursed unless there is enacted, within 90 calendar days 
    of the first such request, a joint resolution that rescinds the 
    remainder of the balance of the borrowing authority provided in 
    this section.
    ``(c) Transmission Line and Related Facility Projects.--
        ``(1) In general.--For repayment purposes, each transmission 
    line and related facility project in which the Western Area Power 
    Administration participates pursuant to this section shall be 
    treated as separate and distinct from--
            ``(A) each other such project; and
            ``(B) all other Western Area Power Administration power and 
        transmission facilities.
        ``(2) Proceeds.--The Western Area Power Administration shall 
    apply the proceeds from the use of the transmission capacity from 
    an individual project under this section to the repayment of the 
    principal and interest of the loan from the Treasury attributable 
    to that project, after reserving such funds as the Western Area 
    Power Administration determines are necessary--
            ``(A) to pay for any ancillary services that are provided; 
        and
            ``(B) to meet the costs of operating and maintaining the 
        new project from which the revenues are derived.
        ``(3) Source of revenue.--Revenue from the use of projects 
    under this section shall be the only source of revenue for--
            ``(A) repayment of the associated loan for the project; and
            ``(B) payment of expenses for ancillary services and 
        operation and maintenance.
        ``(4) Limitation on authority.--Nothing in this section confers 
    on the Administrator any additional authority or obligation to 
    provide ancillary services to users of transmission facilities 
    developed under this section.
        ``(5) Treatment of certain revenues.--Revenue from ancillary 
    services provided by existing Federal power systems to users of 
    transmission projects funded pursuant to this section shall be 
    treated as revenue to the existing power system that provided the 
    ancillary services.
    ``(d) Certification.--
        ``(1) In general.--For each project in which the Western Area 
    Power Administration participates pursuant to this section, the 
    Administrator shall certify, prior to committing funds for any such 
    project, that--
            ``(A) the project is in the public interest;
            ``(B) the project will not adversely impact system 
        reliability or operations, or other statutory obligations; and
            ``(C) it is reasonable to expect that the proceeds from the 
        project shall be adequate to make repayment of the loan.
        ``(2) Forgiveness of balances.--
            ``(A) In general.--If, at the end of the useful life of a 
        project, there is a remaining balance owed to the Treasury 
        under this section, the balance shall be forgiven.
            ``(B) Unconstructed projects.--Funds expended to study 
        projects that are considered pursuant to this section but that 
        are not constructed shall be forgiven.
            ``(C) Notification.--The Administrator shall notify the 
        Secretary of such amounts as are to be forgiven under this 
        paragraph.
    ``(e) Public Processes.--
        ``(1) Policies and practices.--Prior to requesting any loans 
    under this section, the Administrator shall use a public process to 
    develop practices and policies that implement the authority granted 
    by this section.
        ``(2) Requests for interest.--In the course of selecting 
    potential projects to be funded under this section, the 
    Administrator shall seek Requests For Interest from entities 
    interested in identifying potential projects through one or more 
    notices published in the Federal Register.''
    Sec. 403. Set-aside for Management and Oversight. Up to 0.5 percent 
of each amount appropriated in this title may be used for the expenses 
of management and oversight of the programs, grants, and activities 
funded by such appropriation, and may be transferred by the head of the 
Federal department or agency involved to any other appropriate account 
within the department or agency for that purpose: Provided, That the 
Secretary will provide a report to the Committees on Appropriations of 
the House of Representatives and the Senate 30 days prior to the 
transfer: Provided further, That funds set aside under this section 
shall remain available for obligation until September 30, 2012.
    Sec. 404. Technical Corrections to the Energy Independence and 
Security Act of 2007. (a) Section 543(a) of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17153(a)) is amended--
        (1) by redesignating paragraphs (2) through (4) as paragraphs 
    (3) through (5), respectively; and
        (2) by striking paragraph (1) and inserting the following:
        ``(1) 34 percent to eligible units of local government--
    alternative 1, in accordance with subsection (b);
        ``(2) 34 percent to eligible units of local government--
    alternative 2, in accordance with subsection (b);''.
    (b) Section 543(b) of the Energy Independence and Security Act of 
2007 (42 U.S.C. 17153(b)) is amended by striking ``subsection (a)(1)'' 
and inserting ``subsection (a)(1) or (2)''.
    (c) Section 548(a)(1) of the Energy Independence and Security Act 
of 2007 (42 U.S.C. 17158(a)(1)) is amending by striking ``; provided'' 
and all that follows through ``541(3)(B)''.
    Sec. 405. Amendments to Title XIII of the Energy Independence and 
Security Act of 2007. Title XIII of the Energy Independence and 
Security Act of 2007 (42 U.S.C. 17381 and following) is amended as 
follows:
        (1) By amending subparagraph (A) of section 1304(b)(3) to read 
    as follows:
            ``(A) In general.--In carrying out the initiative, the 
        Secretary shall provide financial support to smart grid 
        demonstration projects in urban, suburban, tribal, and rural 
        areas, including areas where electric system assets are 
        controlled by nonprofit entities and areas where electric 
        system assets are controlled by investor-owned utilities.''.
        (2) By amending subparagraph (C) of section 1304(b)(3) to read 
    as follows:
            ``(C) Federal share of cost of technology investments.--The 
        Secretary shall provide to an electric utility described in 
        subparagraph (B) or to other parties financial assistance for 
        use in paying an amount equal to not more than 50 percent of 
        the cost of qualifying advanced grid technology investments 
        made by the electric utility or other party to carry out a 
        demonstration project.''.
        (3) By inserting after section 1304(b)(3)(D) the following new 
    subparagraphs:
            ``(E) Availability of data.--The Secretary shall establish 
        and maintain a smart grid information clearinghouse in a timely 
        manner which will make data from smart grid demonstration 
        projects and other sources available to the public. As a 
        condition of receiving financial assistance under this 
        subsection, a utility or other participant in a smart grid 
        demonstration project shall provide such information as the 
        Secretary may require to become available through the smart 
        grid information clearinghouse in the form and within the 
        timeframes as directed by the Secretary. The Secretary shall 
        assure that business proprietary information and individual 
        customer information is not included in the information made 
        available through the clearinghouse.
            ``(F) Open protocols and standards.--The Secretary shall 
        require as a condition of receiving funding under this 
        subsection that demonstration projects utilize open protocols 
        and standards (including Internet-based protocols and 
        standards) if available and appropriate.''.
        (4) By amending paragraph (2) of section 1304(c) to read as 
    follows:
        ``(2) to carry out subsection (b), such sums as may be 
    necessary.''.
        (5) By amending subsection (a) of section 1306 by striking 
    ``reimbursement of one-fifth (20 percent)'' and inserting ``grants 
    of up to one-half (50 percent)''.
        (6) By striking the last sentence of subsection (b)(9) of 
    section 1306.
        (7) By striking ``are eligible for'' in subsection (c)(1) of 
    section 1306 and inserting ``utilize''.
        (8) By amending subsection (e) of section 1306 to read as 
    follows:
    ``(e) Procedures and Rules.--(1) The Secretary shall, within 60 
days after the enactment of the American Recovery and Reinvestment Act 
of 2009, by means of a notice of intent and subsequent solicitation of 
grant proposals--
        ``(A) establish procedures by which applicants can obtain 
    grants of not more than one-half of their documented costs;
        ``(B) require as a condition of receiving funding under this 
    subsection that demonstration projects utilize open protocols and 
    standards (including Internet-based protocols and standards) if 
    available and appropriate;
        ``(C) establish procedures to ensure that there is no 
    duplication or multiple payment for the same investment or costs, 
    that the grant goes to the party making the actual expenditures for 
    the qualifying Smart Grid investments, and that the grants made 
    have a significant effect in encouraging and facilitating the 
    development of a smart grid;
        ``(D) establish procedures to ensure there will be public 
    records of grants made, recipients, and qualifying Smart Grid 
    investments which have received grants; and
        ``(E) establish procedures to provide advance payment of moneys 
    up to the full amount of the grant award.
    ``(2) The Secretary shall have discretion and exercise reasonable 
judgment to deny grants for investments that do not qualify.''.
    Sec. 406. Renewable Energy and Electric Power Transmission Loan 
Guarantee Program. (a) Amendment.--Title XVII of the Energy Policy Act 
of 2005 (42 U.S.C. 16511 et seq.) is amended by adding the following at 
the end:

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

    ``(a) In General.--Notwithstanding section 1703, the Secretary may 
make guarantees under this section only for the following categories of 
projects that commence construction not later than September 30, 2011:
        ``(1) Renewable energy systems, including incremental 
    hydropower, that generate electricity or thermal energy, and 
    facilities that manufacture related components.
        ``(2) Electric power transmission systems, including upgrading 
    and reconductoring projects.
        ``(3) Leading edge biofuel projects that will use technologies 
    performing at the pilot or demonstration scale that the Secretary 
    determines are likely to become commercial technologies and will 
    produce transportation fuels that substantially reduce life-cycle 
    greenhouse gas emissions compared to other transportation fuels.
    ``(b) Factors Relating to Electric Power Transmission Systems.--In 
determining to make guarantees to projects described in subsection 
(a)(2), the Secretary may consider the following factors:
        ``(1) The viability of the project without guarantees.
        ``(2) The availability of other Federal and State incentives.
        ``(3) The importance of the project in meeting reliability 
    needs.
        ``(4) The effect of the project in meeting a State or region's 
    environment (including climate change) and energy goals.
    ``(c) Wage Rate Requirements.--The Secretary shall require that 
each recipient of support under this section provide reasonable 
assurance that all laborers and mechanics employed in the performance 
of the project for which the assistance is provided, including those 
employed by contractors or subcontractors, will be paid wages at rates 
not less than those prevailing on similar work in the locality as 
determined by the Secretary of Labor in accordance with subchapter IV 
of chapter 31 of part A of subtitle II of title 40, United States Code 
(commonly referred to as the `Davis-Bacon Act').
    ``(d) Limitation.--Funding under this section for projects 
described in subsection (a)(3) shall not exceed $500,000,000.
    ``(e) Sunset.--The authority to enter into guarantees under this 
section shall expire on September 30, 2011.''.
    (b) Table of Contents Amendment.--The table of contents for the 
Energy Policy Act of 2005 is amended by inserting after the item 
relating to section 1704 the following new item:
``Sec. 1705. Temporary program for rapid deployment of renewable energy 
          and electric power transmission projects.''.
    Sec. 407. Weatherization Assistance Program Amendments. (a) Income 
Level.--Section 412(7) of the Energy Conservation and Production Act 
(42 U.S.C. 6862(7)) is amended by striking ``150 percent'' both places 
it appears and inserting ``200 percent''.
    (b) Assistance Level Per Dwelling Unit.--Section 415(c)(1) of the 
Energy Conservation and Production Act (42 U.S.C. 6865(c)(1)) is 
amended by striking ``$2,500'' and inserting ``$6,500''.
    (c) Effective Use of Funds.--In providing funds made available by 
this Act for the Weatherization Assistance Program, the Secretary may 
encourage States to give priority to using such funds for the most 
cost-effective efficiency activities, which may include insulation of 
attics, if, in the Secretary's view, such use of funds would increase 
the effectiveness of the program.
    (d) Training and Technical Assistance.--Section 416 of the Energy 
Conservation and Production Act (42 U.S.C. 6866) is amended by striking 
``10 percent'' and inserting ``up to 20 percent''.
    (e) Assistance for Previously Weatherized Dwelling Units.--Section 
415(c)(2) of the Energy Conservation and Production Act (42 U.S.C. 
6865(c)(2)) is amended by striking ``September 30, 1979'' and inserting 
``September 30, 1994''.
    Sec. 408. Technical Corrections to Public Utility Regulatory 
Policies Act of 1978. (a) Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
redesignating paragraph (16) relating to consideration of smart grid 
investments (added by section 1307(a) of Public Law 110-140) as 
paragraph (18) and by redesignating paragraph (17) relating to smart 
grid information (added by section 1308(a) of Public Law 110-140) as 
paragraph (19).
    (b) Subsections (b) and (d) of section 112 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2622) are each amended by 
striking ``(17) through (18)'' in each place it appears and inserting 
``(16) through (19)''.
    Sec. 409. Renewable Electricity Transmission Study. In completing 
the 2009 National Electric Transmission Congestion Study, the Secretary 
of Energy shall include--
        (1) an analysis of the significant potential sources of 
    renewable energy that are constrained in accessing appropriate 
    market areas by lack of adequate transmission capacity;
        (2) an analysis of the reasons for failure to develop the 
    adequate transmission capacity;
        (3) recommendations for achieving adequate transmission 
    capacity;
        (4) an analysis of the extent to which legal challenges filed 
    at the State and Federal level are delaying the construction of 
    transmission necessary to access renewable energy; and
        (5) an explanation of assumptions and projections made in the 
    Study, including--
            (A) assumptions and projections relating to energy 
        efficiency improvements in each load center;
            (B) assumptions and projections regarding the location and 
        type of projected new generation capacity; and
            (C) assumptions and projections regarding projected 
        deployment of distributed generation infrastructure.
    Sec. 410. Additional State Energy Grants. (a) In General.--Amounts 
appropriated under the heading ``Department of Energy--Energy 
Programs--Energy Efficiency and Renewable Energy'' in this title shall 
be available to the Secretary of Energy for making additional grants 
under part D of title III of the Energy Policy and Conservation Act (42 
U.S.C. 6321 et seq.). The Secretary shall make grants under this 
section in excess of the base allocation established for a State under 
regulations issued pursuant to the authorization provided in section 
365(f) of such Act only if the governor of the recipient State notifies 
the Secretary of Energy in writing that the governor has obtained 
necessary assurances that each of the following will occur:
        (1) The applicable State regulatory authority will seek to 
    implement, in appropriate proceedings for each electric and gas 
    utility, with respect to which the State regulatory authority has 
    ratemaking authority, a general policy that ensures that utility 
    financial incentives are aligned with helping their customers use 
    energy more efficiently and that provide timely cost recovery and a 
    timely earnings opportunity for utilities associated with cost-
    effective measurable and verifiable efficiency savings, in a way 
    that sustains or enhances utility customers' incentives to use 
    energy more efficiently.
        (2) The State, or the applicable units of local government that 
    have authority to adopt building codes, will implement the 
    following:
            (A) A building energy code (or codes) for residential 
        buildings that meets or exceeds the most recently published 
        International Energy Conservation Code, or achieves equivalent 
        or greater energy savings.
            (B) A building energy code (or codes) for commercial 
        buildings throughout the State that meets or exceeds the ANSI/
        ASHRAE/IESNA Standard 90.1-2007, or achieves equivalent or 
        greater energy savings.
            (C) A plan for the jurisdiction achieving compliance with 
        the building energy code or codes described in subparagraphs 
        (A) and (B) within 8 years of the date of enactment of this Act 
        in at least 90 percent of new and renovated residential and 
        commercial building space. Such plan shall include active 
        training and enforcement programs and measurement of the rate 
        of compliance each year.
        (3) The State will to the extent practicable prioritize the 
    grants toward funding energy efficiency and renewable energy 
    programs, including--
            (A) the expansion of existing energy efficiency programs 
        approved by the State or the appropriate regulatory authority, 
        including energy efficiency retrofits of buildings and 
        industrial facilities, that are funded--
                (i) by the State; or
                (ii) through rates under the oversight of the 
            applicable regulatory authority, to the extent applicable;
            (B) the expansion of existing programs, approved by the 
        State or the appropriate regulatory authority, to support 
        renewable energy projects and deployment activities, including 
        programs operated by entities which have the authority and 
        capability to manage and distribute grants, loans, performance 
        incentives, and other forms of financial assistance; and
            (C) cooperation and joint activities between States to 
        advance more efficient and effective use of this funding to 
        support the priorities described in this paragraph.
    (b) State Match.--The State cost share requirement under the item 
relating to ``Department of Energy; Energy Conservation'' in title II 
of the Department of the Interior and Related Agencies Appropriations 
Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not apply to 
assistance provided under this section.
    (c) Equipment and Materials for Energy Efficiency Measures and 
Renewable Energy Measures.--No limitation on the percentage of funding 
that may be used for the purchase and installation of equipment and 
materials for energy efficiency measures and renewable energy measures 
under grants provided under part D of title III of the Energy Policy 
and Conservation Act (42 U.S.C. 6321 et seq.) shall apply to assistance 
provided under this section.

           TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT

                       DEPARTMENT OF THE TREASURY

           Treasury Inspector General for Tax Administration


                          SALARIES AND EXPENSES

    For an additional amount for necessary expenses of the Treasury 
Inspector General for Tax Administration in carrying out the Inspector 
General Act of 1978, $7,000,000, to remain available until September 
30, 2013, for oversight and audits of the administration of the making 
work pay tax credit and economic recovery payments under the American 
Recovery and Reinvestment Act of 2009.

   Community Development Financial Institutions Fund Program Account

    For an additional amount for ``Community Development Financial 
Institutions Fund Program Account'', $100,000,000, to remain available 
until September 30, 2010, for qualified applicants under the fiscal 
year 2009 funding round of the Community Development Financial 
Institutions Program, of which up to $8,000,000 may be for financial 
assistance, technical assistance, training and outreach programs 
designed to benefit Native American, Native Hawaiian, and Alaskan 
Native communities and provided primarily through qualified community 
development lender organizations with experience and expertise in 
community development banking and lending in Indian country, Native 
American organizations, tribes and tribal organizations and other 
suitable providers and up to $2,000,000 may be used for administrative 
expenses: Provided, That for the purpose of the fiscal year 2009 
funding round, the following statutory provisions are hereby waived: 12 
U.S.C. 4707(e) and 12 U.S.C. 4707(d): Provided further, That no 
awardee, together with its subsidiaries and affiliates, may be awarded 
more than 5 percent of the aggregate funds available during fiscal year 
2009 from the Community Development Financial Institutions Program: 
Provided further, That no later than 60 days after the date of 
enactment of this Act, the Department of the Treasury shall submit to 
the Committees on Appropriations of the House of Representatives and 
the Senate a detailed expenditure plan for funds provided under this 
heading.

                        Internal Revenue Service


                HEALTH INSURANCE TAX CREDIT ADMINISTRATION

    For an additional amount to implement the health insurance tax 
credit under the TAA Health Coverage Improvement Act of 2009, 
$80,000,000, to remain available until September 30, 2010.

                    GENERAL SERVICES ADMINISTRATION

                        Real Property Activities


                          federal buildings fund

                  limitations on availability of revenue

                      (including transfer of funds)

    For an additional amount to be deposited in the Federal Buildings 
Fund, $5,550,000,000, to carry out the purposes of the Fund, of which 
not less than $750,000,000 shall be available for Federal buildings and 
United States courthouses, not less than $300,000,000 shall be 
available for border stations and land ports of entry, and not less 
than $4,500,000,000 shall be available for measures necessary to 
convert GSA facilities to High-Performance Green Buildings, as defined 
in section 401 of Public Law 110-140: Provided, That not to exceed 
$108,000,000 of the amounts provided under this heading may be expended 
for rental of space, related to leasing of temporary space in 
connection with projects funded under this heading: Provided further, 
That not to exceed $127,000,000 of the amounts provided under this 
heading may be expended for building operations, for the administrative 
costs of completing projects funded under this heading: Provided 
further, That not to exceed $3,000,000 of the funds provided shall be 
for on-the-job pre-apprenticeship and apprenticeship training programs 
registered with the Department of Labor, for the construction, repair, 
and alteration of Federal buildings: Provided further, That not less 
than $5,000,000,000 of the funds provided under this heading shall be 
obligated by September 30, 2010, and the remainder of the funds 
provided under this heading shall be obligated not later than September 
30, 2011: Provided further, That the Administrator of General Services 
is authorized to initiate design, construction, repair, alteration, and 
other projects through existing authorities of the Administrator: 
Provided further, That the General Services Administration shall submit 
a detailed plan, by project, regarding the use of funds made available 
in this Act to the Committees on Appropriations of the House of 
Representatives and the Senate within 45 days of enactment of this Act, 
and shall provide notification to the Committees within 15 days prior 
to any changes regarding the use of these funds: Provided further, 
That, hereafter, the Administrator shall report to the Committees on 
the obligation of these funds on a quarterly basis beginning on June 
30, 2009: Provided further, That of the amounts provided, $4,000,000 
shall be transferred to and merged with ``Government-Wide Policy'', for 
the Office of Federal High-Performance Green Buildings as authorized in 
the Energy Independence and Security Act of 2007 (Public Law 110-140): 
Provided further, That amounts provided under this heading that are 
savings or cannot be used for the activity for which originally 
obligated may be deobligated and, notwithstanding any other provision 
of law, reobligated for the purposes identified in the plan required 
under this heading not less than 15 days after notification has been 
provided to the Committees on Appropriations of the House of 
Representatives and the Senate.

        Energy-Efficient Federal Motor Vehicle Fleet Procurement

    For capital expenditures and necessary expenses of acquiring motor 
vehicles with higher fuel economy, including: hybrid vehicles; electric 
vehicles; and commercially-available, plug-in hybrid vehicles, 
$300,000,000, to remain available until September 30, 2011: Provided, 
That none of these funds may be obligated until the Administrator of 
General Services submits to the Committees on Appropriations of the 
House of Representatives and the Senate, within 90 days after enactment 
of this Act, a plan for expenditure of the funds that details the 
current inventory of the Federal fleet owned by the General Services 
Administration, as well as other Federal agencies, and the strategy to 
expend these funds to replace a portion of the Federal fleet with the 
goal of substantially increasing energy efficiency over the current 
status, including increasing fuel efficiency and reducing emissions: 
Provided further, That, hereafter, the Administrator shall report to 
the Committees on the obligation of these funds on a quarterly basis 
beginning on September 30, 2009.

                      Office of Inspector General

    For an additional amount for the Office of the Inspector General, 
to remain available until September 30, 2013, for oversight and audit 
of programs, grants, and projects funded under this title, $7,000,000.

           RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY BOARD

    For necessary expenses of the Recovery Act Accountability and 
Transparency Board to carry out the provisions of title XV of this Act, 
$84,000,000, to remain available until September 30, 2011.

                     SMALL BUSINESS ADMINISTRATION

                         Salaries and Expenses

    For an additional amount, to remain available until September 30, 
2010, $69,000,000, of which $24,000,000 is for marketing, management, 
and technical assistance under section 7(m) of the Small Business Act 
(15 U.S.C. 636(m)(4)) by intermediaries that make microloans under the 
microloan program, and of which $20,000,000 is for improving, 
streamlining, and automating information technology systems related to 
lender processes and lender oversight: Provided, That no later than 60 
days after the date of enactment of this Act, the Small Business 
Administration shall submit to the Committees on Appropriations of the 
House of Representatives and the Senate a detailed expenditure plan for 
funds provided under the heading ``Small Business Administration'' in 
this Act.

                      Office of Inspector General

    For an additional amount for the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, 
$10,000,000, to remain available until September 30, 2013, for 
oversight and audit of programs, grants, and projects funded under this 
title.

                 Surety Bond Guarantees Revolving Fund

    For additional capital for the Surety Bond Guarantees Revolving 
Fund, authorized by the Small Business Investment Act of 1958, 
$15,000,000, to remain available until expended.

                     Business Loans Program Account

    For an additional amount for the cost of direct loans, $6,000,000, 
to remain available until September 30, 2010, and for an additional 
amount for the cost of guaranteed loans, $630,000,000, to remain 
available until September 30, 2010: Provided, That of the amount for 
the cost of guaranteed loans, $375,000,000 shall be for reimbursements, 
loan subsidies and loan modifications for loans to small business 
concerns authorized in section 501 of this title; and $255,000,000 
shall be for loan subsidies and loan modifications for loans to small 
business concerns authorized in section 506 of this title: Provided 
further, That such costs, including the cost of modifying such loans, 
shall be as defined in section 502 of the Congressional Budget Act of 
1974.

        Administrative Provisions--Small Business Administration

    Sec. 501. Fee Reductions. (a) Administrative Provisions Small 
Business Administration.--Until September 30, 2010, and to the extent 
that the cost of such elimination or reduction of fees is offset by 
appropriations, with respect to each loan guaranteed under section 7(a) 
of the Small Business Act (15 U.S.C. 636(a)) and section 502 of this 
title, for which the application is approved on or after the date of 
enactment of this Act, the Administrator shall--
        (1) in lieu of the fee otherwise applicable under section 
    7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)), 
    collect no fee or reduce fees to the maximum extent possible; and
        (2) in lieu of the fee otherwise applicable under section 
    7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)), 
    collect no fee or reduce fees to the maximum extent possible.
    (b) Temporary Fee Elimination for the 504 Loan Program.--
        (1) In general.--Until September 30, 2010, and to the extent 
    the cost of such elimination in fees is offset by appropriations, 
    with respect to each project or loan guaranteed by the 
    Administrator pursuant to title V of the Small Business Investment 
    Act of 1958 (15 U.S.C. 695 et seq.) for which an application is 
    approved or pending approval on or after the date of enactment of 
    this Act--
            (A) the Administrator shall, in lieu of the fee otherwise 
        applicable under section 503(d)(2) of the Small Business 
        Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no fee;
            (B) a development company shall, in lieu of the processing 
        fee under section 120.971(a)(1) of title 13, Code of Federal 
        Regulations (relating to fees paid by borrowers), or any 
        successor thereto, collect no fee.
        (2) Reimbursement for waived fees.--
            (A) In general.--To the extent that the cost of such 
        payments is offset by appropriations, the Administrator shall 
        reimburse each development company that does not collect a 
        processing fee pursuant to paragraph (1)(B).
            (B) Amount.--The payment to a development company under 
        subparagraph (A) shall be in an amount equal to 1.5 percent of 
        the net debenture proceeds for which the development company 
        does not collect a processing fee pursuant to paragraph (1)(B).
    (c) Application of Fee Eliminations.--
        (1) To the extent that amounts are made available to the 
    Administrator for the purpose of fee eliminations or reductions 
    under subsection (a), the Administrator shall--
            (A) first use any amounts provided to eliminate or reduce 
        fees paid by small business borrowers under clauses (i) through 
        (iii) of paragraph (18)(A), to the maximum extent possible; and
            (B) then use any amounts provided to eliminate or reduce 
        fees under paragraph (23)(A) paid by small business lenders 
        with assets less than $1,000,000,000 as of the date of 
        enactment; and
            (C) then use any remaining amounts appropriated under this 
        title to reduce fees paid by small business lenders other than 
        those with assets less than $1,000,000,000.
        (2) The Administrator shall eliminate fees under subsections 
    (a) and (b) until the amount provided for such purposes, as 
    applicable, under the heading ``Business Loans Program Account'' 
    under the heading ``Small Business Administration'' under this Act 
    are expended.
    Sec. 502. Economic Stimulus Lending Program for Small Businesses. 
(a) Purpose.--The purpose of this section is to permit the Small 
Business Administration to guarantee up to 90 percent of qualifying 
small business loans made by eligible lenders.
    (b) Definitions.--For purposes of this section:
        (1) The term ``Administrator'' means the Administrator of the 
    Small Business Administration.
        (2) The term ``qualifying small business loan'' means any loan 
    to a small business concern pursuant to section 7(a) of the Small 
    Business Act (15 U.S.C. 636) or title V of the Small Business 
    Investment Act of 1958 (15 U.S.C. 695 and following) except for 
    such loans made under section 7(a)(31).
        (3) The term ``small business concern'' has the same meaning as 
    provided by section 3 of the Small Business Act (15 U.S.C. 632).
    (c) Qualified Borrowers.--
        (1) Aliens unlawfully present in the united states.--A loan 
    guarantee may not be made under this section for a loan made to a 
    concern if an individual who is an alien unlawfully present in the 
    United States--
            (A) has an ownership interest in that concern; or
            (B) has an ownership interest in another concern that 
        itself has an ownership interest in that concern.
        (2) Firms in violation of immigration laws.--No loan guarantee 
    may be made under this section for a loan to any entity found, 
    based on a determination by the Secretary of Homeland Security or 
    the Attorney General to have engaged in a pattern or practice of 
    hiring, recruiting or referring for a fee, for employment in the 
    United States an alien knowing the person is an unauthorized alien.
    (d) Criminal Background Checks.--Prior to the approval of any loan 
guarantee under this section, the Administrator may verify the 
applicant's criminal background, or lack thereof, through the best 
available means, including, if possible, use of the National Crime 
Information Center computer system at the Federal Bureau of 
Investigation.
    (e) Application of Other Law.--Nothing in this section shall be 
construed to exempt any activity of the Administrator under this 
section from the Federal Credit Reform Act of 1990 (title V of the 
Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 
and following).
    (f) Sunset.--Loan guarantees may not be issued under this section 
after the date 12 months after the date of enactment of this Act.
    (g) Small Business Act Provisions.--The provisions of the Small 
Business Act applicable to loan guarantees under section 7 of that Act 
and regulations promulgated thereunder as of the date of enactment of 
this Act shall apply to loan guarantees under this section except as 
otherwise provided in this section.
    (h) Authorization.--There are authorized to be appropriated such 
sums as may be necessary to carry out this section.
    Sec. 503. Establishment of SBA Secondary Market Guarantee 
Authority. (a) Purpose.--The purpose of this section is to provide the 
Administrator with the authority to establish the SBA Secondary Market 
Guarantee Authority within the SBA to provide a Federal guarantee for 
pools of first lien 504 loans that are to be sold to third-party 
investors.
    (b) Definitions.--For purposes of this section:
        (1) The term ``Administrator'' means the Administrator of the 
    Small Business Administration.
        (2) The term ``first lien position 504 loan'' means the first 
    mortgage position, non-federally guaranteed loans made by private 
    sector lenders made under title V of the Small Business Investment 
    Act.
    (c) Establishment of Authority.--
        (1) Organization.--
            (A) The Administrator shall establish a Secondary Market 
        Guarantee Authority within the Small Business Administration.
            (B) The Administrator shall appoint a Director of the 
        Authority who shall report to the Administrator.
            (C) The Administrator is authorized to hire such personnel 
        as are necessary to operate the Authority and may contract such 
        operations of the Authority as necessary to qualified third 
        party companies or individuals.
            (D) The Administrator is authorized to contract with 
        private sector fiduciary and custom dial agents as necessary to 
        operate the Authority.
        (2) Guarantee process.--
            (A) The Administrator shall establish, by rule, a process 
        in which private sector entities may apply to the 
        Administration for a Federal guarantee on pools of first lien 
        position 504 loans that are to be sold to third-party 
        investors.
            (B) The Administrator is authorized to contract with 
        private sector fiduciary and custom dial agents as necessary to 
        operate the Authority.
        (3) Responsibilities.--
            (A) The Administrator shall establish, by rule, a process 
        in which private sector entities may apply to the SBA for a 
        Federal guarantee on pools of first lien position 504 loans 
        that are to be sold to third-party investors.
            (B) The rule under this section shall provide for a process 
        for the Administrator to consider and make decisions regarding 
        whether to extend a Federal guarantee referred to in clause 
        (i). Such rule shall also provide that:
                (i) The seller of the pools purchasing a guarantee 
            under this section retains not less than 5 percent of the 
            dollar amount of the pools to be sold to third-party 
            investors.
                (ii) The Administrator shall charge fees, upfront or 
            annual, at a specified percentage of the loan amount that 
            is at such a rate that the cost of the program under the 
            Federal Credit Reform Act of 1990 (title V of the 
            Congressional Budget and Impoundment Control Act of 1974; 2 
            U.S.C. 661) shall be equal to zero.
                (iii) The Administrator may guarantee not more than 
            $3,000,000,000 of pools under this authority.
            (C) The Administrator shall establish documents, legal 
        covenants, and other required documentation to protect the 
        interests of the United States.
            (D) The Administrator shall establish a process to receive 
        and disburse funds to entities under the authority established 
        in this section.
    (d) Limitations.--
        (1) The Administrator shall ensure that entities purchasing a 
    guarantee under this section are using such guarantee for the 
    purpose of selling 504 first lien position pools to third-party 
    investors.
        (2) If the Administrator finds that any such guarantee was used 
    for a purpose other than that specified in paragraph (1), the 
    Administrator shall--
            (A) prohibit the purchaser of the guarantee or its 
        affiliates (within the meaning of the regulations under 13 CFR 
        121.103) from using the authority of this section in the 
        future; and
            (B) take any other actions the Administrator, in 
        consultation with the Attorney General of the United States 
        deems appropriate.
    (e) Oversight.--The 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 preceding month.
        (2) The aggregate amount of guarantees outstanding.
        (3) Defaults and payments on defaults made under this section.
        (4) The identity of each purchaser of a guarantee found by the 
    Administrator to have misused guarantees under this section.
        (5) Any other information the Administrator deems necessary to 
    fully inform Congress of undue risk to the United States associated 
    with the issuance of guarantees under this section.
    (f) Duration of Program.--The authority of this section shall 
terminate on the date 2 years after the date of enactment of this 
section.
    (g) Funding.--Such sums as necessary are authorized to be 
appropriated to carry out the provisions of this section.
    (h) Budget Treatment.--Nothing in this section shall be construed 
to exempt any activity of the Administrator under this section from the 
Federal Credit Reform Act of 1990 (title V of the Congressional Budget 
and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
    (i) Emergency Rulemaking Authority.--The Administrator shall issue 
regulations under this section within 15 days after the date of 
enactment of this section. The notice requirements of section 553(b) of 
title 5, United States Code shall not apply to the promulgation of such 
regulations.
    Sec. 504. Stimulus for Community Development Lending. (a) Low 
Interest Refinancing Under the Local Development Business Loan 
Program.--Section 502 of the Small Business Investment Act of 1958 (15 
U.S.C. 696) is amended by adding at the end the following:
        ``(7) Permissible debt refinancing.--
            ``(A) In general.--Any financing approved under this title 
        may include a limited amount of debt refinancing.
            ``(B) Expansions.--If the project involves expansion of a 
        small business concern, any amount of existing indebtedness 
        that does not exceed 50 percent of the project cost of the 
        expansion may be refinanced and added to the expansion cost, 
        if--
                ``(i) the proceeds of the indebtedness were used to 
            acquire land, including a building situated thereon, to 
            construct a building thereon, or to purchase equipment;
                ``(ii) the existing indebtedness is collateralized by 
            fixed assets;
                ``(iii) the existing indebtedness was incurred for the 
            benefit of the small business concern;
                ``(iv) the financing under this title will be used only 
            for refinancing existing indebtedness or costs relating to 
            the project financed under this title;
                ``(v) the financing under this title will provide a 
            substantial benefit to the borrower when prepayment 
            penalties, financing fees, and other financing costs are 
            accounted for;
                ``(vi) the borrower has been current on all payments 
            due on the existing debt for not less than 1 year preceding 
            the date of refinancing; and
                ``(vii) the financing under section 504 will provide 
            better terms or rate of interest than the existing 
            indebtedness at the time of refinancing.''.
    (b) Job Creation Goals.--Section 501(e)(1) and section 501(e)(2) of 
the Small Business Investment Act (15 U.S.C. 695) are each amended by 
striking ``$50,000'' and inserting ``$65,000''.
    Sec. 505. Increasing Small Business Investment. (a) Simplified 
Maximum Leverage Limits.--Section 303(b) of the Small Business 
Investment Act of 1958 (15 U.S.C. 683(b)) is amended as follows:
        (1) By striking so much of paragraph (2) as precedes 
    subparagraphs (C) and (D) and inserting the following:
        ``(2) Maximum leverage.--
            ``(A) In general.--The maximum amount of outstanding 
        leverage made available to any one company licensed under 
        section 301(c) of this Act may not exceed the lesser of--
                ``(i) 300 percent of such company's private capital; or
                ``(ii) $150,000,000.
            ``(B) Multiple licenses under common control.--The maximum 
        amount of outstanding leverage made available to two or more 
        companies licensed under section 301(c) of this Act that are 
        commonly controlled (as determined by the Administrator) and 
        not under capital impairment may not exceed $225,000,000.'';
        (2) By amending paragraph (2)(C) by inserting ``(i)'' before 
    ``In calculating'' and adding the following at the end thereof:
                ``(ii) The maximum amount of outstanding leverage made 
            available to--

                    ``(I) any 1 company described in clause (iii) may 
                not exceed the lesser of 300 percent of private capital 
                of the company, or $175,000,000; and
                    ``(II) 2 or more companies described in clause 
                (iii) that are under common control (as determined by 
                the Administrator) may not exceed $250,000,000.

                ``(iii) A company described in this clause is a company 
            licensed under section 301(c) in the first fiscal year 
            after the date of enactment of this clause or any fiscal 
            year thereafter that certifies in writing that not less 
            than 50 percent of the dollar amount of investments of that 
            company shall be made in companies that are located in a 
            low-income geographic area (as that term is defined in 
            section 351).''.
        (3) By striking paragraph (4).
    (b) Simplified Aggregate Investment Limitations.--Section 306(a) of 
the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is amended 
to read as follows:
    ``(a) Percentage Limitation on Private Capital.--If any small 
business investment company has obtained financing from the 
Administrator and such financing remains outstanding, the aggregate 
amount of securities acquired and for which commitments may be issued 
by such company under the provisions of this title for any single 
enterprise shall not, without the approval of the Administrator, exceed 
10 percent of the sum of--
        ``(1) the private capital of such company; and
        ``(2) the total amount of leverage projected by the company in 
    the company's business plan that was approved by the Administrator 
    at the time of the grant of the company's license.''.
    (c) Investments in Smaller Enterprises.--Section 303(d) of the 
Small Business Investment Act of 1958 (15 U.S.C. 683(d)) is amended to 
read as follows:
    ``(d) Investments in Smaller Enterprises.--The Administrator shall 
require each licensee, as a condition of approval of an application for 
leverage, to certify in writing that not less than 25 percent of the 
aggregate dollar amount of financings of that licensee shall be 
provided to smaller enterprises.''.
    Sec. 506. Business Stabilization Program. (a) In General.--Subject 
to the availability of appropriations, the Administrator of the Small 
Business Administration shall carry out a program to provide loans on a 
deferred basis to viable (as such term is determined pursuant to 
regulation by the Administrator of the Small Business Administration) 
small business concerns that have a qualifying small business loan and 
are experiencing immediate financial hardship.
    (b) Eligible Borrower.--A small business concern as defined under 
section 3 of the Small Business Act (15 U.S.C. 632).
    (c) Qualifying Small Business Loan.--A loan made to a small 
business concern that meets the eligibility standards in section 7(a) 
of the Small Business Act (15 U.S.C. 636(a)) but shall not include 
loans guarantees (or loan guarantee commitments made) by the 
Administrator prior to the date of enactment of this Act.
    (d) Loan Size.--Loans guaranteed under this section may not exceed 
$35,000.
    (e) Purpose.--Loans guaranteed under this program shall be used to 
make periodic payment of principal and interest, either in full or in 
part, on an existing qualifying small business loan for a period of 
time not to exceed 6 months.
    (f) Loan Terms.--Loans made under this section shall:
        (1) carry a 100 percent guaranty; and
        (2) have interest fully subsidized for the period of repayment.
    (g) Repayment.--Repayment for loans made under this section shall--
        (1) be amortized over a period of time not to exceed 5 years; 
    and
        (2) not begin until 12 months after the final disbursement of 
    funds is made.
    (h) Collateral.--The Administrator of the Small Business 
Administration may accept any available collateral, including 
subordinated liens, to secure loans made under this section.
    (i) Fees.--The Administrator of the Small Business Administration 
is prohibited from charging any processing fees, origination fees, 
application fees, points, brokerage fees, bonus points, prepayment 
penalties, and other fees that could be charged to a loan applicant for 
loans under this section.
    (j) Sunset.--The Administrator of the Small Business Administration 
shall not issue loan guarantees under this section after September 30, 
2010.
    (k) Emergency Rulemaking Authority.--The Administrator of the Small 
Business Administration shall issue regulations under this section 
within 15 days after the date of enactment of this section. The notice 
requirements of section 553(b) of title 5, United States Code shall not 
apply to the promulgation of such regulations.

SEC. 507. GAO REPORT.

    (a) Report.--Not later than 60 days after the enactment of this 
Act, the Comptroller General of the United States shall report to the 
Congress on the actions of the Administrator in implementing the 
authorities established in the administrative provisions of this title.
    (b) Included Item.--The report under this section shall include a 
summary of the activity of the Administrator under this title and an 
analysis of whether he is accomplishing the purpose of increasing 
liquidity in the secondary market for Small Business Administration 
loans.

SEC. 508. SURETY BONDS.

    (a) Maximum Bond Amount.--Section 411(a)(1) of the Small Business 
Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended--
        (1) by inserting ``(A)'' after ``(1)'';
        (2) by striking ``$2,000,000'' and inserting ``$5,000,000''; 
    and
        (3) by adding at the end the following:
    ``(B) The Administrator may guarantee a surety under subparagraph 
(A) for a total work order or contract amount that does not exceed 
$10,000,000, if a contracting officer of a Federal agency certifies 
that such a guarantee is necessary.''.
    (b) Denial of Liability--
        Section 411 of the Small Business Investment Act of 1958 (15 
    U.S.C. 694b) is amended--
        (1) by striking subsection (e) and inserting the following:
    ``(e) Reimbursement of Surety; Conditions.--
Pursuant to any such guarantee or agreement, the Administration shall 
reimburse the surety, as provided in subsection (c) of this section, 
except that the Administration shall be relieved of liability (in whole 
or in part within the discretion of the Administration) if--
        (1) the surety obtained such guarantee or agreement, or applied 
    for such reinbursement, by fraud or material misrepresentation,
        (2) the total contract amount at the time of execution of the 
    bond or bonds exceeds $5,000,000,
        (3) the surety has breached a material term or condition of 
    such guarantee agreement, or
        (4) the surety has substantially violated the regulations 
    promulgated by the Administration pursuant to subsection (d).''
    (2) by adding at the end the following:
    ``(k) For bonds made or executed with the prior approval of the 
Administration, the Administration shall not deny liability to a surety 
based upon material information that was provided as part of the 
guaranty application.''.
    (c) Size Standards.--Section 410 of the Small Business Investment 
Act of 1958 (15 U.S.C. 694a) is amended by adding at the end the 
following:
        ``(9) Notwithstanding any other provision of law or any rule, 
    regulation, or order of the Administration, for purposes of 
    sections 410, 411, and 412 the term `small business concern' means 
    a business concern that meets the size standard for the primary 
    industry in which such business concern, and the affiliates of such 
    business concern, is engaged, as determined by the Administrator in 
    accordance with the North American Industry Classification 
    System.''.
    (d) Study--The Administrator of the Small Business Administration 
shall conduct a study of the current funding structure of the surety 
bond program carried out under part B (15 U.S.C. 694a et seq.) of title 
IV of the Small Business Investment Act of 1958. The study shall 
include--
        (1) an assessment of whether the program's current funding 
    framework and program fees are inhibiting the program's growth;
        (2) an assessment of whether surety companies and small 
    business concerns could benefit from an alternative funding 
    structure; and
    (e) Report--Not later than 180 days after the date of enactment of 
this Act, the Administrator shall submit to Congress a report on the 
results of the study required under subsection (d).
    (f) Sunset.--The amendments made by this section shall remain in 
effect until September 30, 2010.

SEC. 509. ESTABLISHMENT OF SBA SECONDARY MARKET LENDING AUTHORITY.

    (a) Purpose.--The purpose of this section is to provide the Small 
Business Administration with the authority to establish a Secondary 
Market Lending Authority within the SBA to make loans to the 
systemically important SBA secondary market broker-dealers who operate 
the SBA secondary market.
    (b) Definitions.--For purposes of this section:
        (1) The term ``Administrator'' means the Administrator of the 
    SBA.
        (2) The term ``SBA'' means the Small Business Administration.
        (3) The terms ``Secondary Market Lending Authority'' and 
    ``Authority'' mean the office establishedunder subsection (c).
        (4) The term ``SBA secondary market'' meansthe market for the 
    purchase and sale of loans originated, underwritten, and closed 
    under the Small Business Act.
        (5) The term ``Systemically Important Secondary Market Broker-
    Dealers'' mean those entities designated under subsection (c)(1) as 
    vital to the continued operation of the SBA secondary market by 
    reason of their purchase and sale of the government guaranteed 
    portion of loans, or pools of loans,originated, underwritten, and 
    closed under the Small Business Act.
    (c) Responsibilities, Authorities, Organization, and Limitations.--
        (1) Designation of systemically important SBA secondary market 
    broker-dealers.--The Administrator shall establish a process to 
    designate, in consultation with the Board of Governors of the 
    Federal Reserve and the Secretary of the Treasury, Systemically 
    Important Secondary Market Broker-Dealers.
        (2) Establishment of SBA secondary market lending authority.--
            (A) Organization.--
                (i) The Administrator shall establish within the SBA an 
            office to provide loans to Systemically Important Secondary 
            Market Broker-dealers to be used for the purpose of 
            financing the inventory of the government guaranteed 
            portion of loans, originated, underwritten, and closed 
            under the Small Business Act or pools of such loans.
                (ii) The Administrator shall appoint a Director of the 
            Authority who shall report to the Administrator.
                (iii) The Administrator is authorized to hire such 
            personnel as are necessary to operate the Authority.
                (iv) The Administrator may contract such Authority 
            operations as he determines necessary to qualified third-
            party companies or individuals.
                (v) The Administrator is authorized to contract with 
            private sector fiduciary and custodial agents as necessary 
            to operate the Authority.
            (B) Loans.--
                (i) The Administrator shall establish by rule a process 
            under which Systemically Important SBA Secondary Market 
            Broker-Dealers designated under paragraph (1) may apply to 
            the Administrator for loans under this section.
                (ii) The rule under clause (i) shall provide a process 
            for the Administrator to consider and make decisions 
            regarding whether or not to extend a loan applied for under 
            this section. Such rule shall include provisions to assure 
            each of the following:

                    (I) That loans made under this section are for the 
                sole purpose of financing the inventory of the govern 
                ment guaranteed portion of loans, originated, 
                underwritten, and closed under the Small Business Act 
                or pools of such loans.
                    (II) That loans made under this section are fully 
                collateralized to the satisfaction of the 
                Administrator.
                    (III) That there is no limit to the frequency in 
                which a borrower may borrow under this section unless 
                the Administrator determines that doing so would create 
                an undue risk of loss to the agency or the United 
                States.
                    (IV) That there is no limit on the size of a loan, 
                subject to the discretion of the Administrator.

                (iii) Interest on loans under this section shall not 
            exceed the Federal Funds target rate as established by the 
            Federal Reserve Board of Governors plus 25 basis points.
                (iv) The rule under this section shall provide for such 
            loan documents, legal covenants, collateral requirements 
            and other required documentation as necessary to protect 
            the interests of the agency, the United States, and the 
            taxpayer.
                (v) The Administrator shall establish custodial 
            accounts to safeguard any collateral pledged to the SBA in 
            connection with a loan under this section.
                (vi) The Administrator shall establish a process to 
            disburse and receive funds to and from borrowers under this 
            section.
    (C) Limitations on use of Loan Proceeds by Systemically Important 
Secondary Market Broker-Dealers.--The Administrator shall ensure that 
borrowers under this section are using funds provided under this 
section only for the purpose specified in subparagraph (B)(ii)(I). If 
the Administrator finds that such funds were used for any other 
purpose, the Administrator shall--
        (i) require immediate repayment of outstanding loans;
        (ii) prohibit the borrower, its affiliates, or any future 
    corporate manifestation of the borrower from using the Authority; 
    and
        (iii) take any other actions the Administrator, in consultation 
    with the Attorney General of the United States, deemsappropriate.
    (d) Report to Congress.--The Administrator shall submit a report to 
Congress not later than the third business day of each month containing 
a statement of each of the following:
        (1) The aggregate loan amounts extended during the preceding 
    month under this section.
        (2) The aggregate loan amounts repaid under this section during 
    the proceeding month.
        (3) The aggregate loan amount outstanding under this section.
        (4) The aggregate value of assets held as collateral under this 
    section;
        (5) The amount of any defaults or delinquencies on loans made 
    under this section.
        (6) The identity of any borrower found by the Administrator to 
    misuse funds made available under this section.
        (7) Any other information the Administrator deems necessary to 
    fully inform Congress of undue risk of financial loss to the United 
    States in connection with loans made under this section.
    (e) Duration.--The authority of this section shall remain in effect 
for a period of 2 years after the date of enactment of this section.
    (f) Fees.--The Administrator shall charge fees, up front, annual, 
or both at a specified percentage of the loan amount that is at such a 
rate that the cost of the program under the Federal Credit Reform Act 
of 1990 ((title V of the Congressional Budget and Impoundment Control 
Act of 1974; 2 U.S.C. 661) shall be equal to zero.
    (h) Budget treatment.--Nothing in this section shall be construed 
to exempt any activity of the Administrator under this section from the 
Federal Credit Reform Act of 1990 (title V of the Congressional Budget 
and Im poundment Control Act of 1974; 2 U.S.C. 661 and following).
    (i) Emergency Rulemaking Authority.--The Administrator shall 
promulgate regulations under this section within 30 days after the date 
of enactment of enactment of this section. In promulgating these 
regulations,the Administrator the notice requirements of section 553(b) 
of title 5 of the United States Code shall not apply.

               TITLE VI--DEPARTMENT OF HOMELAND SECURITY

              Office of the Under Secretary for Management

    For an additional amount for the ``Office of the Under Secretary 
for Management'', $200,000,000 for planning, design, construction 
costs, site security, information technology infrastructure, fixtures, 
and related costs to consolidate the Department of Homeland Security 
headquarters: Provided, That no later than 60 days after the date of 
enactment of this Act, the Secretary of Homeland Security, in 
consultation with the Administrator of General Services, shall submit 
to the Committees on Appropriations of the Senate and the House of 
Representatives a plan for the expenditure of these funds.

                      office of inspector general

    For an additional amount for the ``Office of Inspector General'', 
$5,000,000, to remain available until September 30, 2012, for oversight 
and audit of programs, grants, and projects funded under this title.

                   U.S. Customs and Border Protection

                         salaries and expenses

    For an additional amount for ``Salaries and Expenses'', 
$160,000,000, of which $100,000,000 shall be for the procurement and 
deployment of non-intrusive inspection systems; and of which 
$60,000,000 shall be for procurement and deployment of tactical 
communications equipment and radios: Provided, That no later than 45 
days after the date of enactment of this Act, the Secretary of Homeland 
Security shall submit to the Committees on Appropriations of the Senate 
and the House of Representatives a plan for expenditure of these funds.

        border security fencing, infrastructure, and technology

    For an additional amount for ``Border Security Fencing, 
Infrastructure, and Technology'', $100,000,000 for expedited 
development and deployment of border security technology on the 
Southwest border: Provided, That no later than 45 days after the date 
of enactment of this Act, the Secretary of Homeland Security shall 
submit to the Committees on Appropriations of the Senate and the House 
of Representatives a plan for expenditure of these funds.

                              construction

    For an additional amount for ``Construction'', $420,000,000 solely 
for planning, management, design, alteration, and construction of U.S. 
Customs and Border Protection owned land border ports of entry: 
Provided, That no later than 45 days after the date of enactment of 
this Act, the Secretary of Homeland Security shall submit to the 
Committees on Appropriations of the Senate and the House of 
Representatives a plan for expenditure of these funds.

                U.S. Immigration and Customs Enforcement

                        automation modernization

    For an additional amount for ``Automation Modernization'', 
$20,000,000 for the procurement and deployment of tactical 
communications equipment and radios: Provided, That no later than 45 
days after the date of enactment of this Act, the Secretary of Homeland 
Security shall submit to the Committees on Appropriations of the Senate 
and the House of Representatives a plan for expenditure of these funds.

                 Transportation Security Administration

                           aviation security

    For an additional amount for ``Aviation Security'', $1,000,000,000 
for procurement and installation of checked baggage explosives 
detection systems and checkpoint explosives detection equipment: 
Provided, That the Assistant Secretary of Homeland Security 
(Transportation Security Administration) shall prioritize the award of 
these funds to accelerate the installations at locations with completed 
design plans: Provided further, That no later than 45 days after the 
date of enactment of this Act, the Secretary of Homeland Security shall 
submit to the Committees on Appropriations of the Senate and the House 
of Representatives a plan for the expenditure of these funds.

                              Coast Guard

              acquisition, construction, and improvements

    For an additional amount for ``Acquisition, Construction, and 
Improvements'', $98,000,000 for shore facilities and aids to navigation 
facilities; for priority procurements due to materials and labor cost 
increases; and for costs to repair, renovate, assess, or improve 
vessels: Provided, That no later than 45 days after the date of 
enactment of this Act, the Secretary of Homeland Security shall submit 
to the Committees on Appropriations of the Senate and the House of 
Representatives a plan for the expenditure of these funds.

                         alteration of bridges

     For an additional amount for ``Alteration of Bridges'', 
$142,000,000 for alteration or removal of obstructive bridges, as 
authorized by section 6 of the Truman-Hobbs Act (33 U.S.C. 516): 
Provided, That the Coast Guard shall award these funds to those bridges 
that are ready to proceed to construction: Provided further, That no 
later than 45 days after the date of enactment of this Act, the 
Secretary of Homeland Security shall submit to the Committees on 
Appropriations of the Senate and the House of Representatives a plan 
for the expenditure of these funds.

                  Federal Emergency Management Agency

                        state and local programs

    For an additional amount for grants, $300,000,000, to be allocated 
as follows:
        (1) $150,000,000 for Public Transportation Security Assistance 
    and Railroad Security Assistance under sections 1406 and 1513 of 
    the Implementing Recommendations of the 9/11 Commission Act of 2007 
    (Public Law 110-53; 6 U.S.C. 1135 and 1163).
        (2) $150,000,000 for Port Security Grants in accordance with 46 
    U.S.C. 70107, notwithstanding 46 U.S.C. 70107(c).

                     firefighter assistance grants

    For an additional amount for competitive grants, $210,000,000 for 
modifying, upgrading, or constructing non-Federal fire stations: 
Provided, That up to 5 percent shall be for program administration: 
Provided further, That no grant shall exceed $15,000,000.

            disaster assistance direct loan program account

    Notwithstanding section 417(b) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act, the amount of any such loan issued 
pursuant to this section for major disasters occurring in calendar year 
2008 may exceed $5,000,000, and may be equal to not more than 50 
percent of the annual operating budget of the local government in any 
case in which that local government has suffered a loss of 25 percent 
or more in tax revenues: Provided, That the cost of modifying such 
loans shall be as defined in section 502 of the Congressional Budget 
Act of 1974 (2 U.S.C. 661a).

                       emergency food and shelter

    For an additional amount to carry out the emergency food and 
shelter program pursuant to title III of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11331 et seq.), $100,000,000: Provided, That 
total administrative costs shall not exceed 3.5 percent of the total 
amount made available under this heading.

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 601.  Notwithstanding any other provision of law, the 
President shall establish an arbitration panel under the Federal 
Emergency Management Agency public assistance program to expedite the 
recovery efforts from Hurricanes Katrina and Rita within the Gulf Coast 
Region. The arbitration panel shall have sufficient authority regarding 
the award or denial of disputed public assistance applications for 
covered hurricane damage under section 403, 406, or 407 of the Robert 
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 
5170b, 5172, or 5173) for a project the total amount of which is more 
than $500,000.
    Sec. 602.  The Administrator of the Federal Emergency Management 
Agency may not prohibit or restrict the use of funds designated under 
the hazard mitigation grant program for damage caused by Hurricanes 
Katrina and Rita if the homeowner who is an applicant for assistance 
under such program commenced work otherwise eligible for hazard 
mitigation grant program assistance under section 404 of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170c) 
without approval in writing from the Administrator.
    Sec. 603. Subparagraph (E) of section 34(a)(1) of the Federal Fire 
Prevention and Control Act of 1974 (15 U.S.C. 2229a(a)(1)(E)) shall not 
apply with respect to funds appropriated in this or any other Act 
making appropriations for fiscal year 2009 or 2010 for grants under 
such section 34.
    Sec. 604. (a) Requirement.--Except as provided in subsections (c) 
through (g), funds appropriated or otherwise available to the 
Department of Homeland Security may not be used for the procurement of 
an item described in subsection (b) if the item is not grown, 
reprocessed, reused, or produced in the United States.
    (b) Covered Items.--An item referred to in subsection (a) is any of 
the following, if the item is directly related to the national security 
interests of the United States:
        (1) An article or item of--
            (A) clothing and the materials and components thereof, 
        other than sensors, electronics, or other items added to, and 
        not normally associated with, clothing (and the materials and 
        components thereof);
            (B) tents, tarpaulins, covers, textile belts, bags, 
        protective equipment (including but not limited to body armor), 
        sleep systems, load carrying equipment (including but not 
        limited to fieldpacks), textile marine equipment, parachutes, 
        or bandages;
            (C) cotton and other natural fiber products, woven silk or 
        woven silk blends, spun silk yarn for cartridge cloth, 
        synthetic fabric or coated synthetic fabric (including all 
        textile fibers and yarns that are for use in such fabrics), 
        canvas products, or wool (whether in the form of fiber or yarn 
        or contained in fabrics, materials, or manufactured articles); 
        or
            (D) any item of individual equipment manufactured from or 
        containing such fibers, yarns, fabrics, or materials.
    (c) Availability Exception.--Subsection (a) does not apply to the 
extent that the Secretary of Homeland Security determines that 
satisfactory quality and sufficient quantity of any such article or 
item described in subsection (b)(1) grown, reprocessed, reused, or 
produced in the United States cannot be procured as and when needed at 
United States market prices. This section is not applicable to covered 
items that are, or include, materials determined to be non-available in 
accordance with Federal Acquisition Regulation 25.104 Nonavailable 
Articles.
    (d) De Minimis Exception.--Notwithstanding subsection (a), the 
Secretary of Homeland Security may accept delivery of an item covered 
by subsection (b) that contains non-compliant fibers if the total value 
of non-compliant fibers contained in the end item does not exceed 10 
percent of the total purchase price of the end item.
    (e) Exception for Certain Procurements Outside the United States.--
Subsection (a) does not apply to the following:
        (1) Procurements by vessels in foreign waters.
        (2) Emergency procurements.
    (f) Exception for Small Purchases.--Subsection (a) does not apply 
to purchases for amounts not greater than the simplified acquisition 
threshold referred to in section 2304(g) of title 10, United States 
Code.
    (g) Applicability to Contracts and Subcontracts for Procurement of 
Commercial Items.--This section is applicable to contracts and 
subcontracts for the procurement of commercial items not withstanding 
section 34 of the Office of Federal Procurement Policy Act (41 U.S.C. 
430), with the exception of commercial items listed under subsections 
(b)(1)(C) and (b)(1)(D) above. For the purposes of this section, 
``commercial'' shall be as defined in the Federal Acquisition 
Regulation--Part 2.
    (h) Geographic Coverage.--In this section, the term ``United 
States'' includes the possessions of the United States.
    (i) Notification Required Within 7 Days After Contract Award if 
Certain Exceptions Applied.--In the case of any contract for the 
procurement of an item described in subsection (b)(1), if the Secretary 
of Homeland Security applies an exception set forth in subsection (c) 
with respect to that contract, the Secretary shall, not later than 7 
days after the award of the contract, post a notification that the 
exception has been applied on the Internet site maintained by the 
General Services Administration known as FedBizOps.gov (or any 
successor site).
    (j) Training During Fiscal Year 2009.--
        (1) In general.--The Secretary of Homeland Security shall 
    ensure that each member of the acquisition workforce in the 
    Department of Homeland Security who participates personally and 
    substantially in the acquisition of textiles on a regular basis 
    receives training during fiscal year 2009 on the requirements of 
    this section and the regulations implementing this section.
        (2) Inclusion of information in new training programs.--The 
    Secretary shall ensure that any training program for the 
    acquisition workforce developed or implemented after the date of 
    the enactment of this Act includes comprehensive information on the 
    requirements described in paragraph (1).
    (k) CONSISTENCY WITH INTERNATIONAL AGREEMENTS.-- This section shall 
be applied in a manner consistent with United States obligations under 
international agreements.
    (l) Effective Date.--This section applies with respect to contracts 
entered into by the Department of Homeland Security 180 days after the 
date of the enactment of this Act.

         TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES

                       DEPARTMENT OF THE INTERIOR

                       Bureau of Land Management

                   management of lands and resources

    For an additional amount for ``Management of Lands and Resources'', 
for activities on all Bureau of Land Management lands including 
maintenance, rehabilitation, and restoration of facilities, property, 
trails and lands and for remediation of abandoned mines and wells, 
$125,000,000.

                              construction

    For an additional amount for ``Construction'', for activities on 
all Bureau of Land Management lands including construction, 
reconstruction, decommissioning and repair of roads, bridges, trails, 
property, and facilities and for energy efficient retrofits of existing 
facilities, $180,000,000.

                        wildland fire management

    For an additional amount for ``Wildland Fire Management'', for 
hazardous fuels reduction, $15,000,000.

                United States Fish and Wildlife Service

                          resource management

    For an additional amount for ``Resource Management'', for deferred 
maintenance, construction, and capital improvement projects on national 
wildlife refuges and national fish hatcheries and for high priority 
habitat restoration projects, $165,000,000.

                              construction

    For an additional amount for ``Construction'', for construction, 
reconstruction, and repair of roads, bridges, property, and facilities 
and for energy efficient retrofits of existing facilities, 
$115,000,000.

                         National Park Service

                 operation of the national park system

    For an additional amount for ``Operation of the National Park 
System'', for deferred maintenance of facilities and trails and for 
other critical repair and rehabilitation projects, $146,000,000.


                        Historic Preservation Fund

    For an additional amount for ``Historic Preservation Fund'', for 
historic preservation projects at historically black colleges and 
universities as authorized by the Historic Preservation Fund Act of 
1996 and the Omnibus Parks and Public Lands Act of 1996, $15,000,000: 
Provided, That any matching requirements otherwise required for such 
projects are waived.

                              construction

    For an additional amount for ``Construction'', for repair and 
restoration of roads; construction of facilities, including energy 
efficient retrofits of existing facilities; equipment replacement; 
preservation and repair of historical resources within the National 
Park System; cleanup of abandoned mine sites on park lands; and other 
critical infrastructure projects, $589,000,000.

                    United States Geological Survey

                 surveys, investigations, and research

    For an additional amount for ``Surveys, Investigations, and 
Research'', $140,000,000, for repair, construction and restoration of 
facilities; equipment replacement and upgrades including stream gages, 
and seismic and volcano monitoring systems; national map activities; 
and other critical deferred maintenance and improvement projects.

                        Bureau of Indian Affairs

                      operation of indian programs

    For an additional amount for ``Operation of Indian Programs'', for 
workforce training programs and the housing improvement program, 
$40,000,000.

                              construction

    For an additional amount for ``Construction'', for repair and 
restoration of roads; replacement school construction; school 
improvements and repairs; and detention center maintenance and repairs, 
$450,000,000: Provided, That section 1606 of this Act shall not apply 
to tribal contracts entered into by the Bureau of Indian Affairs with 
this appropriation.

                 indian guaranteed loan program account

    For an additional amount for ``Indian Guaranteed Loan Program 
Account'', $10,000,000.

                      Office of Inspector General

                         salaries and expenses

    For an additional amount for ``Office of Inspector General'', 
$15,000,000, to remain available until September 30, 2012.

                     ENVIROMENTAL PROTECTION AGENCY

                      Office of Inspector General

    For an additional amount for ``Office of Inspector General'', 
$20,000,000, to remain available until September 30, 2012.

                     Hazardous Substance Superfund

    For an additional amount for ``Hazardous Substance Superfund'', 
$600,000,000, which shall be for the Superfund Remedial program: 
Provided, That the Administrator of the Environmental Protection Agency 
(Administrator) may retain up to 3 percent of the funds appropriated 
herein for management and oversight purposes.

          Leaking Underground Storage Tank Trust Fund Program

    For an additional amount for ``Leaking Underground Storage Tank 
Trust Fund Program'', $200,000,000, which shall be for cleanup 
activities authorized by section 9003(h) of the Solid Waste Disposal 
Act: Provided, That none of these funds shall be subject to cost share 
requirements under section 9003(h)(7)(B) of such Act: Provided further, 
That the Administrator may retain up to 1.5 percent of the funds 
appropriated herein for management and oversight purposes.

                   State and Tribal Assistance Grants

                     (including transfers of funds)

    For an additional amount for ``State and Tribal Assistance 
Grants'', $6,400,000,000, which shall be allocated as follows:
        (1) $4,000,000,000 shall be for capitalization grants for the 
    Clean Water State Revolving Funds under title VI of the Federal 
    Water Pollution Control Act and $2,000,000,000 shall be for 
    capitalization grants under section 1452 of the Safe Drinking Water 
    Act: Provided, That the Administrator may retain up to 1 percent of 
    the funds appropriated herein for management and oversight 
    purposes: Provided further, That funds appropriated herein shall 
    not be subject to the matching or cost share requirements of 
    sections 602(b)(2), 602(b)(3) or 202 of the Federal Water Pollution 
    Control Act nor the matching requirements of section 1452(e) of the 
    Safe Drinking Water Act: Provided further, That the Administrator 
    shall reallocate funds appropriated herein for the Clean and 
    Drinking Water State Revolving Funds (Revolving Funds) where 
    projects are not under contract or construction within 12 months of 
    the date of enactment of this Act: Provided further, That 
    notwithstanding the priority rankings they would otherwise receive 
    under each program, priority for funds appropriated herein shall be 
    given to projects on a State priority list that are ready to 
    proceed to construction within 12 months of the date of enactment 
    of this Act: Provided further, That notwithstanding the 
    requirements of section 603(d) of the Federal Water Pollution 
    Control Act or section 1452(f) of the Safe Drinking Water Act, for 
    the funds appropriated herein, each State shall use not less than 
    50 percent of the amount of its capitalization grants to provide 
    additional subsidization to eligible recipients in the form of 
    forgiveness of principal, negative interest loans or grants or any 
    combination of these: Provided further, That, to the extent there 
    are sufficient eligible project applications, not less than 20 
    percent of the funds appropriated herein for the Revolving Funds 
    shall be for projects to address green infrastructure, water or 
    energy efficiency improvements or other environmentally innovative 
    activities: Provided further, That notwithstanding the limitation 
    on amounts specified in section 518(c) of the Federal Water 
    Pollution Control Act, up to 1.5 percent of the funds appropriated 
    herein for the Clean Water State Revolving Funds may be reserved by 
    the Administrator for tribal grants under section 518(c) of such 
    Act: Provided further, That up to 4 percent of the funds 
    appropriated herein for tribal set-asides under the Revolving Funds 
    may be transferred to the Indian Health Service to support 
    management and oversight of tribal projects: Provided further, That 
    none of the funds appropriated herein shall be available for the 
    purchase of land or easements as authorized by section 603(c) of 
    the Federal Water Pollution Control Act or for activities 
    authorized by section 1452(k) of the Safe Drinking Water Act: 
    Provided further, That notwithstanding section 603(d)(2) of the 
    Federal Water Pollution Control Act and section 1452(f)(2) of the 
    Safe Drinking Water Act, funds may be used to buy, refinance or 
    restructure the debt obligations of eligible recipients only where 
    such debt was incurred on or after October 1, 2008;
        (2) $100,000,000 shall be to carry out Brownfields projects 
    authorized by section 104(k) of the Comprehensive Environmental 
    Response, Compensation, and Liability Act of 1980: Provided, That 
    the Administrator may reserve up to 3.5 percent of the funds 
    appropriated herein for management and oversight purposes: Provided 
    further, That none of the funds appropriated herein shall be 
    subject to cost share requirements under section 104(k)(9)(B)(iii) 
    of such Act; and
        (3) $300,000,000 shall be for Diesel Emission Reduction Act 
    grants pursuant to title VII, subtitle G of the Energy Policy Act 
    of 2005: Provided, That the Administrator may reserve up to 2 
    percent of the funds appropriated herein for management and 
    oversight purposes: Provided further, That none of the funds 
    appropriated herein for Diesel Emission Reduction Act grants shall 
    be subject to the State Grant and Loan Program Matching Incentive 
    provisions of section 793(c)(3) of such Act.

       Administrative Provision, Environmental Protection Agency


                      (Including Transfers of Funds)

    Funds made available to the Environmental Protection Agency by this 
Act for management and oversight purposes shall remain available until 
September 30, 2011, and may be transferred to the ``Environmental 
Programs and Management'' account as needed.

                       DEPARTMENT OF AGRICULTURE

                             Forest Service

                  capital improvement and maintenance

    For an additional amount for ``Capital Improvement and 
Maintenance'', $650,000,000, for priority road, bridge and trail 
maintenance and decommissioning, including related watershed 
restoration and ecosystem enhancement projects; facilities improvement, 
maintenance and renovation; remediation of abandoned mine sites; and 
support costs necessary to carry out this work.

                        wildland fire management

    For an additional amount for ``Wildland Fire Management'', 
$500,000,000, of which $250,000,000 is for hazardous fuels reduction, 
forest health protection, rehabilitation and hazard mitigation 
activities on Federal lands and of which $250,000,000 is for State and 
private forestry activities including hazardous fuels reduction, forest 
health and ecosystem improvement activities on State and private lands 
using all authorities available to the Forest Service: Provided, That 
up to $50,000,000 of the total funding may be used to make wood-to-
energy grants to promote increased utilization of biomass from Federal, 
State and private lands: Provided further, That funds provided for 
activities on State and private lands shall not be subject to matching 
or cost share requirements.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                         Indian Health Service

                         indian health services

    For an additional amount for ``Indian Health Services'', for health 
information technology activities, $85,000,000: Provided, That such 
funds may be used for both telehealth services development and related 
infrastructure requirements that are typically funded through the 
``Indian Health Facilities'' account: Provided further, That 
notwithstanding any other provision of law, health information 
technology funds provided within this title shall be allocated at the 
discretion of the Director of the Indian Health Service.

                        indian health facilities

    For an additional amount for ``Indian Health Facilities'', for 
facilities construction projects, deferred maintenance and improvement 
projects, the backlog of sanitation projects and the purchase of 
equipment, $415,000,000, of which $227,000,000 is provided within the 
health facilities construction activity for the completion of up to two 
facilities from the current priority list for which work has already 
been initiated: Provided, That for the purposes of this Act, spending 
caps included within the annual appropriation for ``Indian Health 
Facilities'' for the purchase of medical equipment shall not apply: 
Provided further, That section 1606 of this Act shall not apply to 
tribal contracts entered into by the Service with this appropriation.

                         OTHER RELATED AGENCIES

                        Smithsonian Institution


                            Facilities Capital

    For an additional amount for ``Facilities Capital'', for repair and 
revitalization of existing facilities, $25,000,000.

           National Foundation on the Arts and the Humanities

                    National Endowment for the Arts

                       grants and administration

    For an additional amount for ``Grants and Administration'', 
$50,000,000, to be distributed in direct grants to fund arts projects 
and activities which preserve jobs in the non-profit arts sector 
threatened by declines in philanthropic and other support during the 
current economic downturn: Provided, That 40 percent of such funds 
shall be distributed to State arts agencies and regional arts 
organizations in a manner similar to the agency's current practice and 
60 percent of such funds shall be for competitively selected arts 
projects and activities according to sections 2 and 5(c) of the 
National Foundation on the Arts and Humanities Act of 1965 (20 U.S.C. 
951, 954(c)): Provided further, That matching requirements under 
section 5(e) of such Act shall be waived.

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 701. (a) Within 30 days of enactment of this Act, each agency 
receiving funds under this title shall submit a general plan for the 
expenditure of such funds to the House and Senate Committees on 
Appropriations.
    (b) Within 90 days of enactment of this Act, each agency receiving 
funds under this title shall submit to the Committees a report 
containing detailed project level information associated with the 
general plan submitted pursuant to subsection (a).
    Sec. 702.  In carrying out the work for which funds in this title 
are being made available, the Secretary of the Interior and the 
Secretary of Agriculture shall utilize, where practicable, the Public 
Lands Corps, Youth Conservation Corps, Student Conservation 
Association, Job Corps and other related partnerships with Federal, 
State, local, tribal or non-profit groups that serve young adults.
    Sec. 703. Each agency receiving funds under this title may transfer 
up to 10 percent of the funds in any account to other appropriation 
accounts within the agency, if the head of the agency (1) determines 
that the transfer will enhance the efficiency or effectiveness of the 
use of the funds without changing the intended purpose; and (2) 
notifies the Committees on Appropriations of the House of 
Representatives and the Senate 10 days prior to the transfer.

   TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND 
                    EDUCATION, AND RELATED AGENCIES

                          DEPARTMENT OF LABOR

                 Employment and Training Administration

                    training and employment services

    For an additional amount for ``Training and Employment Services'' 
for activities under the Workforce Investment Act of 1998 (``WIA''), 
$3,950,000,000, which shall be available for obligation on the date of 
enactment of this Act, as follows:
        (1) $500,000,000 for grants to the States for adult employment 
    and training activities, including supportive services and needs-
    related payments described in section 134(e)(2) and (3) of the WIA: 
    Provided, That a priority use of these funds shall be services to 
    individuals described in 134(d)(4)(E) of the WIA;
        (2) $1,200,000,000 for grants to the States for youth 
    activities, including summer employment for youth: Provided, That 
    no portion of such funds shall be reserved to carry out section 
    127(b)(1)(A) of the WIA: Provided further, That for purposes of 
    section 127(b)(1)(C)(iv) of the WIA, funds available for youth 
    activities shall be allotted as if the total amount available for 
    youth activities in the fiscal year does not exceed $1,000,000,000: 
    Provided further, That with respect to the youth activities 
    provided with such funds, section 101(13)(A) of the WIA shall be 
    applied by substituting ``age 24'' for ``age 21'': Provided 
    further, That the work readiness performance indicator described in 
    section 136(b)(2)(A)(ii)(I) of the WIA shall be the only measure of 
    performance used to assess the effectiveness of summer employment 
    for youth provided with such funds;
        (3) $1,250,000,000 for grants to the States for dislocated 
    worker employment and training activities;
        (4) $200,000,000 for the dislocated workers assistance national 
    reserve;
        (5) $50,000,000 for YouthBuild activities: Provided, That for 
    program years 2008 and 2009, the YouthBuild program may serve an 
    individual who has dropped out of high school and re-enrolled in an 
    alternative school, if that re-enrollment is part of a sequential 
    service strategy; and
        (6) $750,000,000 for a program of competitive grants for worker 
    training and placement in high growth and emerging industry 
    sectors: Provided, That $500,000,000 shall be for research, labor 
    exchange and job training projects that prepare workers for careers 
    in energy efficiency and renewable energy as described in section 
    171(e)(1)(B) of the WIA: Provided further, That in awarding grants 
    from those funds not designated in the preceding proviso, the 
    Secretary of Labor shall give priority to projects that prepare 
    workers for careers in the health care sector:
Provided, That funds made available in this paragraph shall remain 
available through June 30, 2010: Provided further, That a local board 
may award a contract to an institution of higher education or other 
eligible training provider if the local board determines that it would 
facilitate the training of multiple individuals in high-demand 
occupations, if such contract does not limit customer choice.

            community service employment for older americans

     For an additional amount for ``Community Service Employment for 
Older Americans'' to carry out title V of the Older Americans Act of 
1965, $120,000,000, which shall be available for obligation on the date 
of enactment of this Act and shall remain available through June 30, 
2010: Provided, That funds shall be allotted within 30 days of such 
enactment to current grantees in proportion to their allotment in 
program year 2008: Provided further, That funds made available under 
this heading in this Act may, in accordance with section 517(c) of the 
Older Americans Act of 1965, be recaptured and reobligated.

     state unemployment insurance and employment service operations

    For an additional amount for ``State Unemployment Insurance and 
Employment Service Operations'' for grants to States in accordance with 
section 6 of the Wagner-Peyser Act, $400,000,000, which may be expended 
from the Employment Security Administration Account in the Unemployment 
Trust Fund, and which shall be available for obligation on the date of 
enactment of this Act: Provided, That such funds shall remain available 
to the States through September 30, 2010: Provided further, That 
$250,000,000 of such funds shall be used by States for reemployment 
services for unemployment insurance claimants (including the integrated 
Employment Service and Unemployment Insurance information technology 
required to identify and serve the needs of such claimants): Provided 
further, That the Secretary of Labor shall establish planning and 
reporting procedures necessary to provide oversight of funds used for 
reemployment services.

                        Departmental Management

                         salaries and expenses

                     (including transfer of funds)

    For an additional amount for ``Departmental Management'', 
$80,000,000, for the enforcement of worker protection laws and 
regulations, oversight, and coordination activities related to the 
infrastructure and unemployment insurance investments in this Act: 
Provided, That the Secretary of Labor may transfer such sums as 
necessary to ``Employment and Standards Administration'', ``Employee 
Benefits Security Administration'', ``Occupational Safety and Health 
Administration'', and ``Employment and Training Administration--Program 
Administration'' for enforcement, oversight, and coordination 
activities: Provided further, That prior to obligating any funds 
proposed to be transferred from this account, the Secretary shall 
provide to the Committees on Appropriations of the House of 
Representatives and the Senate an operating plan describing the planned 
uses of each amount proposed to be transferred.

                          office of job corps

    For an additional amount for ``Office of Job Corps'', $250,000,000, 
for construction, rehabilitation and acquisition of Job Corps Centers, 
which shall be available upon the date of enactment of this Act and 
remain available for obligation through June 30, 2010: Provided, That 
section 1552(a) of title 31, United States Code shall not apply if 
funds are used for a multi-year lease agreement that will result in 
construction activities that can commence within 120 days of enactment 
of this Act: Provided further, That notwithstanding section 3324(a) of 
title 31, United States Code, the funds used for an agreement under the 
preceding proviso may be used for advance, progress, and other 
payments: Provided further, That the Secretary of Labor may transfer up 
to 15 percent of such funds to meet the operational needs of such 
centers, which may include training for careers in the energy 
efficiency, renewable energy, and environmental protection industries: 
Provided further, That the Secretary shall provide to the Committees on 
Appropriations of the House of Representatives and the Senate an 
operating plan describing the allocation of funds, and a report on the 
actual obligations, expenditures, and unobligated balances for each 
activity funded under this heading not later than September 30, 2009 
and quarterly thereafter as long as funding provided under this heading 
is available for obligation or expenditure.

                      office of inspector general

    For an additional amount for the ``Office of Inspector General'', 
$6,000,000, which shall remain available through September 30, 2012, 
for salaries and expenses necessary for oversight and audit of 
programs, grants, and projects funded in this Act.

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

              Health Resources and Services Administration

                     health resources and services

    For an additional amount for ``Health Resources and Services'', 
$2,500,000,000 which shall be used as follows:
        (1) $500,000,000 shall be for grants to health centers 
    authorized under section 330 of the Public Health Service Act 
    (``PHS Act'');
        (2) $1,500,000,000 shall be available for grants for 
    construction, renovation and equipment, and for the acquisition of 
    health information technology systems, for health centers including 
    health center controlled networks receiving operating grants under 
    section 330 of the PHS Act, notwithstanding the limitation in 
    section 330(e)(3); and
        (3) $500,000,000 to address health professions workforce 
    shortages, of which $75,000,000 for the National Health Service 
    Corps shall remain available through September 30, 2011: Provided, 
    That funds may be used to provide scholarships, loan repayment, and 
    grants to training programs for equipment as authorized in the PHS 
    Act, and grants authorized in sections 330L, 747, 767 and 768 of 
    the PHS Act: Provided further, That 20 percent of the funds 
    allocated to the National Health Service Corps shall be used for 
    field operations:
    Provided, That up to 0.5 percent of funds provided in this 
paragraph may used for administration of such funds: Provided further, 
That the Secretary shall provide to the Committees on Appropriations of 
the House of Representatives and the Senate an operating plan detailing 
activities to be supported and timelines for expenditure prior to 
making any Federal obligations of funds provided in this paragraph but 
not later than 90 days after the date of enactment of this Act: 
Provided further, That the Secretary shall provide to the Committees on 
Appropriations of the House of Representatives and the Senate a report 
on the actual obligations, expenditures, and unobligated balances for 
each activity funded in this paragraph not later than November 1, 2009 
and every 6 months thereafter as long as funding provided in this 
paragraph is available for obligation or expenditure.

                     National Institutes of Health

                 national center for research resources

    For an additional amount for ``National Center for Research 
Resources'', $1,300,000,000, of which $1,000,000,000 shall be for 
grants or contracts under section 481A of the Public Health Service Act 
to construct, renovate or repair existing non-Federal research 
facilities: Provided, That sections 481A(c)(1)(B)(ii), paragraphs (1), 
(3), and (4) of section 481A(e), and section 481B of such Act shall not 
apply to the use of such funds: Provided further, That the references 
to ``20 years'' in subsections (c)(1)(B)(i) and (f) of section 481A of 
such Act are deemed to be references to ``10 years'' for purposes of 
using such funds: Provided further, That the National Center for 
Research Resources may also use $300,000,000 to provide, under the 
authority of section 301 and title IV of such Act, shared 
instrumentation and other capital research equipment to recipients of 
grants and contracts under section 481A of such Act and other 
appropriate entities: Provided further, That the Director of the Center 
shall provide to the Committees on Appropriations of the House of 
Representatives and the Senate an annual report indicating the number 
of institutions receiving awards of a grant or contract under section 
481A of such Act, the proposed use of the funding, the average award 
size, a list of grant or contract recipients, and the amount of each 
award.

                         office of the director

                     (including transfer of funds)

    For an additional amount for ``Office of the Director'', 
$8,200,000,000: Provided, That $7,400,000,000 shall be transferred to 
the Institutes and Centers of the National Institutes of Health 
(``NIH'') and to the Common Fund established under section 402A(c)(1) 
of the Public Health Service Act in proportion to the appropriations 
otherwise made to such Institutes, Centers, and Common Fund for fiscal 
year 2009: Provided further, That these funds shall be used to support 
additional scientific research and shall be merged with and be 
available for the same purposes as the appropriation or fund to which 
transferred: Provided further, That this transfer authority is in 
addition to any other transfer authority available to the NIH: Provided 
further, That none of these funds may be transferred to ``National 
Institutes of Health--Buildings and Facilities'', the Center for 
Scientific Review, the Center for Information Technology, the Clinical 
Center, or the Global Fund for HIV/AIDS, Tuberculosis and Malaria: 
Provided further, That the funds provided in this Act to the NIH shall 
not be subject to the provisions of 15 U.S.C. 638(f)(1) and 15 U.S.C. 
638(n)(1): Provided further, That $400,000,000 may be used to carry out 
section 215 of division G of Public Law 110-161.

                        buildings and facilities

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

               Agency for Healthcare Research and Quality

                    healthcare research and quality

                     (including transfer of funds)

    For an additional amount for ``Healthcare Research and Quality'' to 
carry out titles III and IX of the Public Health Service Act, part A of 
title XI of the Social Security Act, and section 1013 of the Medicare 
Prescription Drug, Improvement, and Modernization Act of 2003, 
$700,000,000 for comparative effectiveness research: Provided, That of 
the amount appropriated in this paragraph, $400,000,000 shall be 
transferred to the Office of the Director of the National Institutes of 
Health (``Office of the Director'') to conduct or support comparative 
effectiveness research under section 301 and title IV of the Public 
Health Service Act: Provided further, That funds transferred to the 
Office of the Director may be transferred to the Institutes and Centers 
of the National Institutes of Health and to the Common Fund established 
under section 402A(c)(1) of the Public Health Service Act: Provided 
further, That this transfer authority is in addition to any other 
transfer authority available to the National Institutes of Health: 
Provided further, That within the amount available in this paragraph 
for the Agency for Healthcare Research and Quality, not more than 1 
percent shall be made available for additional full-time equivalents.
    In addition, $400,000,000 shall be available for comparative 
effectiveness research to be allocated at the discretion of the 
Secretary of Health and Human Services (``Secretary''): Provided, That 
the funding appropriated in this paragraph shall be used to accelerate 
the development and dissemination of research assessing the comparative 
effectiveness of health care treatments and strategies, through efforts 
that: (1) conduct, support, or synthesize research that compares the 
clinical outcomes, effectiveness, and appropriateness of items, 
services, and procedures that are used to prevent, diagnose, or treat 
diseases, disorders, and other health conditions; and (2) encourage the 
development and use of clinical registries, clinical data networks, and 
other forms of electronic health data that can be used to generate or 
obtain outcomes data: Provided further, That the Secretary shall enter 
into a contract with the Institute of Medicine, for which no more than 
$1,500,000 shall be made available from funds provided in this 
paragraph, to produce and submit a report to the Congress and the 
Secretary by not later than June 30, 2009, that includes 
recommendations on the national priorities for comparative 
effectiveness research to be conducted or supported with the funds 
provided in this paragraph and that considers input from stakeholders: 
Provided further, That the Secretary shall consider any recommendations 
of the Federal Coordinating Council for Comparative Effectiveness 
Research established by section 804 of this Act and any recommendations 
included in the Institute of Medicine report pursuant to the preceding 
proviso in designating activities to receive funds provided in this 
paragraph and may make grants and contracts with appropriate entities, 
which may include agencies within the Department of Health and Human 
Services and other governmental agencies, as well as private sector 
entities, that have demonstrated experience and capacity to achieve the 
goals of comparative effectiveness research: Provided further, That the 
Secretary shall publish information on grants and contracts awarded 
with the funds provided under this heading within a reasonable time of 
the obligation of funds for such grants and contracts and shall 
disseminate research findings from such grants and contracts to 
clinicians, patients, and the general public, as appropriate: Provided 
further, That, to the extent feasible, the Secretary shall ensure that 
the recipients of the funds provided by this paragraph offer an 
opportunity for public comment on the research: Provided further, That 
research conducted with funds appropriated under this paragraph shall 
be consistent with Departmental policies relating to the inclusion of 
women and minorities in research: Provided further, That the Secretary 
shall provide the Committees on Appropriations of the House of 
Representatives and the Senate, the Committee on Energy and Commerce 
and the Committee on Ways and Means of the House of Representatives, 
and the Committee on Health, Education, Labor, and Pensions and the 
Committee on Finance of the Senate with an annual report on the 
research conducted or supported through the funds provided under this 
heading: Provided further, That the Secretary, jointly with the 
Directors of the Agency for Healthcare Research and Quality and the 
National Institutes of Health, shall provide the Committees on 
Appropriations of the House of Representatives and the Senate a fiscal 
year 2009 operating plan for the funds appropriated under this heading 
prior to making any Federal obligations of such funds in fiscal year 
2009, but not later than July 30, 2009, and a fiscal year 2010 
operating plan for such funds prior to making any Federal obligations 
of such funds in fiscal year 2010, but not later than November 1, 2009, 
that detail the type of research being conducted or supported, 
including the priority conditions addressed; and specify the allocation 
of resources within the Department of Health and Human Services: 
Provided further, That the Secretary, jointly with the Directors of the 
Agency for Healthcare Research and Quality and the National Institutes 
of Health, shall provide to the Committees on Appropriations of the 
House of Representatives and the Senate a report on the actual 
obligations, expenditures, and unobligated balances for each activity 
funded under this heading not later than November 1, 2009, and every 6 
months thereafter as long as funding provided under this heading is 
available for obligation or expenditure.

                Administration for Children and Families

   payments to states for the child care and development block grant

    For an additional amount for ``Payments to States for the Child 
Care and Development Block Grant'', $2,000,000,000, which shall be used 
to supplement, not supplant State general revenue funds for child care 
assistance for low-income families: Provided, That, in addition to the 
amounts required to be reserved by the States under section 658G of the 
Child Care and Development Block Grant Act of 1990, $255,186,000 shall 
be reserved by the States for activities authorized under section 658G, 
of which $93,587,000 shall be for activities that improve the quality 
of infant and toddler care.

                children and families services programs

    For an additional amount for ``Children and Families Services 
Programs'', $3,150,000,000, which shall be used as follows:
        (1) $1,000,000,000 for carrying out activities under the Head 
    Start Act.
        (2) $1,100,000,000 for expansion of Early Head Start programs, 
    as described in section 645A of the Head Start Act: Provided, That 
    of the funds provided in this paragraph, up to 10 percent shall be 
    available for the provision of training and technical assistance to 
    such programs consistent with section 645A(g)(2) of such Act, and 
    up to 3 percent shall be available for monitoring the operation of 
    such programs consistent with section 641A of such Act.
        (3) $1,000,000,000 for carrying out activities under sections 
    674 through 679 of the Community Services Block Grant Act, of which 
    no part shall be subject to section 674(b)(3) of such Act: 
    Provided, That notwithstanding section 675C(a)(1) and 675C(b) of 
    such Act, 1 percent of the funds made available to each State from 
    this additional amount shall be used for benefits enrollment 
    coordination activities relating to the identification and 
    enrollment of eligible individuals and families in Federal, State, 
    and local benefit programs: Provided further, That all funds 
    remaining available to a State from this additional amount after 
    application of the previous proviso shall be distributed to 
    eligible entities as defined in section 673(1) of such Act: 
    Provided further, That for services furnished under such Act during 
    fiscal years 2009 and 2010, States may apply the last sentence of 
    section 673(2) of such Act by substituting ``200 percent'' for 
    ``125 percent''.
        (4) $50,000,000 for carrying out activities under section 1110 
    of the Social Security Act.

                        Administration on Aging

                        aging services programs

    For an additional amount for ``Aging Services Programs'' under 
subparts 1 and 2 of part C, of title III, and under title VI, of the 
Older Americans Act of 1965, $100,000,000, of which $65,000,000 shall 
be for Congregate Nutrition Services, $32,000,000 shall be for Home-
Delivered Nutrition Services and $3,000,000 shall be for Nutrition 
Services for Native Americans.

                        Office of the Secretary

  office of the national coordinator for health information technology

                     (including transfer of funds)

    For an additional amount for ``Office of the National Coordinator 
for Health Information Technology'', $2,000,000,000, to carry out title 
XIII of this Act, to remain available until expended: Provided, That of 
such amount, the Secretary of Health and Human Services shall transfer 
$20,000,000 to the Director of the National Institute of Standards and 
Technology in the Department of Commerce for continued work on 
advancing health care information enterprise integration through 
activities such as technical standards analysis and establishment of 
conformance testing infrastructure, so long as such activities are 
coordinated with the Office of the National Coordinator for Health 
Information Technology: Provided further, That $300,000,000 is to 
support regional or sub-national efforts toward health information 
exchange: Provided further, That 0.25 percent of the funds provided in 
this paragraph may be used for administration of such funds: Provided 
further, That funds available under this heading shall become available 
for obligation only upon submission of an annual operating plan by the 
Secretary to the Committees on Appropriations of the House of 
Representatives and the Senate: Provided further, That the fiscal year 
2009 operating plan shall be provided not later than 90 days after 
enactment of this Act and that subsequent annual operating plans shall 
be provided not later than November 1 of each year: Provided further, 
That these operating plans shall describe how expenditures are aligned 
with the specific objectives, milestones, and metrics of the Federal 
Health Information Technology Strategic Plan, including any subsequent 
updates to the Plan; the allocation of resources within the Department 
of Health and Human Services and other Federal agencies; and the 
identification of programs and activities that are supported: Provided 
further, That the Secretary shall provide to the Committees on 
Appropriations of the House of Representatives and the Senate a report 
on the actual obligations, expenditures, and unobligated balances for 
each major set of activities not later than November 1, 2009, and every 
6 months thereafter as long as funding provided under this heading is 
available for obligation or expenditure.

                      office of inspector general

    For an additional amount for the ``Office of Inspector General'', 
$17,000,000 which shall remain available until September 30, 2012.

            public health and social services emergency fund

    For an additional amount for ``Public Health and Social Services 
Emergency Fund'' to improve information technology security at the 
Department of Health and Human Services, $50,000,000.

                      prevention and wellness fund

                     (including transfer of funds)

    For necessary expenses for a ``Prevention and Wellness Fund'' to be 
administered through the Department of Health and Human Services, 
Office of the Secretary, $1,000,000,000: Provided, That of the amount 
provided in this paragraph, $300,000,000 shall be transferred to the 
Centers for Disease Control and Prevention (``CDC'') as an additional 
amount to carry out the immunization program (``section 317 
immunization program'') authorized by section 317(a), (j), and (k)(1) 
of the Public Health Service Act (``PHS Act''): Provided further, That 
of the amount provided in this paragraph, $650,000,000 shall be to 
carry out evidence-based clinical and community-based prevention and 
wellness strategies authorized by the PHS Act, as determined by the 
Secretary, that deliver specific, measurable health outcomes that 
address chronic disease rates: Provided further, That funds 
appropriated in the preceding proviso may be transferred to other 
appropriation accounts of the Department of Health and Human Services, 
as determined by the Secretary to be appropriate: Provided further, 
That of the amount appropriated in this paragraph, $50,000,000 shall be 
provided to States for an additional amount to carry out activities to 
implement healthcare associated infections reduction strategies: 
Provided further, That not more than 0.5 percent of funds made 
available in this paragraph may be used for management and oversight 
expenses in the office or division of the Department of Health and 
Human Services administering the funds: 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 summarizing the annual 
evaluations of programs from the preceding proviso: Provided further, 
That the Secretary shall provide to the Committees on Appropriations of 
the House of Representatives and the Senate an operating plan for the 
Prevention and Wellness Fund prior to making any Federal obligations of 
funds provided in this paragraph (excluding funds to carry out the 
section 317 immunization program), but not later than 90 days after the 
date of enactment of this Act, that indicates the prevention priorities 
to be addressed; provides measurable goals for each prevention 
priority; details the allocation of resources within the Department of 
Health and Human Services; and identifies which programs or activities 
are supported, including descriptions of any new programs or 
activities: Provided further, That the Secretary shall provide to the 
Committees on Appropriations of the House of Representatives and the 
Senate a report on the actual obligations, expenditures, and 
unobligated balances for each activity funded under this heading not 
later than November 1, 2009, and every 6 months thereafter as long as 
funding provided under this heading is available for obligation or 
expenditure.

                        DEPARTMENT OF EDUCATION

                    Education for the Disadvantaged

    For an additional amount for ``Education for the Disadvantaged'' to 
carry out title I of the Elementary and Secondary Education Act of 1965 
(``ESEA''), $13,000,000,000: Provided, That $5,000,000,000 shall be 
available for targeted grants under section 1125 of the ESEA: Provided 
further, That $5,000,000,000 shall be available for education finance 
incentive grants under section 1125A of the ESEA: Provided further, 
That $3,000,000,000 shall be for school improvement grants under 
section 1003(g) of the ESEA: Provided further, That each local 
educational agency receiving funds available under this paragraph shall 
be required to file with the State educational agency, no later than 
December 1, 2009, a school-by-school listing of per-pupil educational 
expenditures from State and local sources during the 2008-2009 academic 
year: Provided further, That each State educational agency shall report 
that information to the Secretary of Education by March 31, 2010.

                               Impact Aid

    For an additional amount for ``Impact Aid'' to carry out section 
8007 of title VIII of the Elementary and Secondary Education Act of 
1965, $100,000,000, which shall be expended pursuant to the 
requirements of section 805.

                      School Improvement Programs

    For an additional amount for ``School Improvement Programs'' to 
carry out subpart 1, part D of title II of the Elementary and Secondary 
Education Act of 1965 (``ESEA''), and subtitle B of title VII of the 
McKinney-Vento Homeless Assistance Act, $720,000,000: Provided, That 
$650,000,000 shall be available for subpart 1, part D of title II of 
the ESEA: Provided further, That the Secretary shall allot $70,000,000 
for grants under McKinney-Vento to each State in proportion to the 
number of homeless students identified by the State during the 2007-
2008 school year relative to the number of such children identified 
nationally during that school year: Provided further, That State 
educational agencies shall subgrant the McKinney-Vento funds to local 
educational agencies on a competitive basis or according to a formula 
based on the number of homeless students identified by the local 
educational agencies in the State: Provided further, That the Secretary 
shall distribute the McKinney-Vento funds to the States not later than 
60 days after the date of the enactment of this Act: Provided further, 
That each State shall subgrant the McKinney-Vento funds to local 
educational agencies not later than 120 days after receiving its grant 
from the Secretary.

                       Innovation and Improvement

    For an additional amount for ``Innovation and Improvement'' to 
carry out subpart 1, part D of title V of the Elementary and Secondary 
Education Act of 1965 (``ESEA''), $200,000,000: Provided, That these 
funds shall be expended as directed in the fifth, sixth, and seventh 
provisos under the heading ``Innovation and Improvement'' in the 
Department of Education Appropriations Act, 2008: Provided further, 
That a portion of these funds shall also be used for a rigorous 
national evaluation by the Institute of Education Sciences, utilizing 
randomized controlled methodology to the extent feasible, that assesses 
the impact of performance-based teacher and principal compensation 
systems supported by the funds provided in this Act on teacher and 
principal recruitment and retention in high-need schools and subjects: 
Provided further, That the Secretary may reserve up to 1 percent of the 
amount made available under this heading for management and oversight 
of the activities supported with those funds.

                           Special Education

    For an additional amount for ``Special Education'' for carrying out 
parts B and C of the Individuals with Disabilities Education Act 
(``IDEA''), $12,200,000,000, of which $11,300,000,000 shall be 
available for section 611 of the IDEA: Provided, That if every State, 
as defined by section 602(31) of the IDEA, reaches its maximum 
allocation under section 611(d)(3)(B)(iii) of the IDEA, and there are 
remaining funds, such funds shall be proportionally allocated to each 
State subject to the maximum amounts contained in section 611(a)(2) of 
the IDEA: Provided further, That by July 1, 2009, the Secretary of 
Education shall reserve the amount needed for grants under section 
643(e) of the IDEA, with any remaining funds to be allocated in 
accordance with section 643(c) of the IDEA: Provided further, That the 
total amount for each of sections 611(b)(2) and 643(b)(1) of the IDEA, 
under this and all other Acts, for fiscal year 2009, whenever enacted, 
shall be equal to the amounts respectively available for these 
activities under these sections during fiscal year 2008 increased by 
the amount of inflation as specified in section 619(d)(2)(B) of the 
IDEA: Provided further, That $400,000,000 shall be available for 
section 619 of the IDEA and $500,000,000 shall be available for part C 
of the IDEA.

            Rehabilitation Services and Disability Research

    For an additional amount for ``Rehabilitation Services and 
Disability Research'' for providing grants to States to carry out the 
Vocational Rehabilitation Services program under part B of title I and 
parts B and C of chapter 1 and chapter 2 of title VII of the 
Rehabilitation Act of 1973, $680,000,000: Provided, That $540,000,000 
shall be available for part B of title I of the Rehabilitation Act: 
Provided further, That funds provided herein shall not be considered in 
determining the amount required to be appropriated under section 
100(b)(1) of the Rehabilitation Act of 1973 in any fiscal year: 
Provided further, That, notwithstanding section 7(14)(A), the Federal 
share of the costs of vocational rehabilitation services provided with 
the funds provided herein shall be 100 percent: Provided further, That 
$140,000,000 shall be available for parts B and C of chapter 1 and 
chapter 2 of title VII of the Rehabilitation Act: Provided further, 
That $18,200,000 shall be for State Grants, $87,500,000 shall be for 
independent living centers, and $34,300,000 shall be for services for 
older blind individuals.

                      Student Financial Assistance

    For an additional amount for ``Student Financial Assistance'' to 
carry out subpart 1 of part A and part C of title IV of the Higher 
Education Act of 1965 (``HEA''), $15,840,000,000, which shall remain 
available through September 30, 2011: Provided, That $15,640,000,000 
shall be available for subpart 1 of part A of title IV of the HEA: 
Provided further, That $200,000,000 shall be available for part C of 
title IV of the HEA.
    The maximum Pell Grant for which a student shall be eligible during 
award year 2009-2010 shall be $4,860.

                       Student Aid Administration

    For an additional amount for ``Student Aid Administration'' to 
carry out part D of title I, and subparts 1, 3, and 4 of part A, and 
parts B, C, D, and E of title IV of the Higher Education Act of 1965, 
$60,000,000.

                            Higher Education

    For an additional amount for ``Higher Education'' to carry out part 
A of title II of the Higher Education Act of 1965, $100,000,000.

                    Institute of Education Sciences

    For an additional amount for ``Institute of Education Sciences'' to 
carry out section 208 of the Educational Technical Assistance Act, 
$250,000,000, which may be used for Statewide data systems that include 
postsecondary and workforce information, of which up to $5,000,000 may 
be used for State data coordinators and for awards to public or private 
organizations or agencies to improve data coordination.

                        Departmental Management

                    office of the inspector general

    For an additional amount for the ``Office of the Inspector 
General'', $14,000,000, which shall remain available through September 
30, 2012, for salaries and expenses necessary for oversight and audit 
of programs, grants, and projects funded in this Act.

                            RELATED AGENCIES

             Corporation for National and Community Service


                            Operating Expenses

                     (including transfer of funds)

    For an additional amount for ``Operating Expenses'' to carry out 
the Domestic Volunteer Service Act of 1973 (``1973 Act'') and the 
National and Community Service Act of 1990 (``1990 Act''), 
$160,000,000: Provided, That $89,000,000 of the funds made available in 
this paragraph shall be used to make additional awards to existing 
AmeriCorps grantees and may be used to provide adjustments to awards 
under subtitle C of title I of the 1990 Act made prior to September 30, 
2010 for which the Chief Executive Officer of the Corporation for 
National and Community Service (``CEO'') determines that a waiver of 
the Federal share limitation is warranted under section 2521.70 of 
title 45 of the Code of Federal Regulations: Provided further, That of 
the amount made available in this paragraph, not less than $6,000,000 
shall be transferred to ``Salaries and Expenses'' for necessary 
expenses relating to information technology upgrades, of which up to 
$800,000 may be used to administer the funds provided in this 
paragraph: Provided further, That of the amount provided in this 
paragraph, not less than $65,000,000 shall be for programs under title 
I, part A of the 1973 Act: Provided further, That funds provided in the 
previous proviso shall not be made available in connection with cost-
share agreements authorized under section 192A(g)(10) of the 1990 Act: 
Provided further, That of the funds available under this heading, up to 
20 percent of funds allocated to grants authorized under section 124(b) 
of title I, subtitle C of the 1990 Act may be used to administer, 
reimburse, or support any national service program under section 
129(d)(2) of the 1990 Act: Provided further, That, except as provided 
herein and in addition to requirements identified herein, funds 
provided in this paragraph shall be subject to the terms and conditions 
under which funds were appropriated in fiscal year 2008: Provided 
further, That the CEO shall provide the Committees on Appropriations of 
the House of Representatives and the Senate a fiscal year 2009 
operating plan for the funds appropriated in this paragraph prior to 
making any Federal obligations of such funds in fiscal year 2009, but 
not later than 90 days after the date of enactment of this Act, and a 
fiscal year 2010 operating plan for such funds prior to making any 
Federal obligations of such funds in fiscal year 2010, but not later 
than November 1, 2009, that detail the allocation of resources and the 
increased number of members supported by the AmeriCorps programs: 
Provided further, That the CEO shall provide to the Committees on 
Appropriations of the House of Representatives and the Senate a report 
on the actual obligations, expenditures, and unobligated balances for 
each activity funded under this heading not later than November 1, 
2009, and every 6 months thereafter as long as funding provided under 
this heading is available for obligation or expenditure.

                      Office of Inspector General

    For an additional amount for the ``Office of Inspector General'', 
$1,000,000, which shall remain available until September 30, 2012.

                         National Service Trust

                     (including transfer of funds)

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

                     Social Security Administration


                  Limitation on Administrative Expenses

                      (including transfer of funds)

    For an additional amount for ``Limitation on Administrative 
Expenses'', $1,000,000,000 shall be available as follows:
        (1) $500,000,000 shall remain available until expended for 
    necessary expenses of the replacement of the National Computer 
    Center and the information technology costs associated with such 
    Center: Provided, That the Commissioner of Social Security shall 
    notify the Committees on Appropriations of the House of 
    Representatives and the Senate not later than 10 days prior to each 
    public notice soliciting bids related to site selection and 
    construction and prior to the lease or purchase of such site: 
    Provided further, That the construction plan and site selection for 
    such center shall be subject to review and approval by the Office 
    of Management and Budget: Provided further, That such center shall 
    continue to be a government-operated facility; and
        (2) $500,000,000 for processing disability and retirement 
    workloads, including information technology acquisitions and 
    research in support of such activities: Provided, That up to 
    $40,000,000 may be used by the Commissioner of Social Security for 
    health information technology research and activities to facilitate 
    the adoption of electronic medical records in disability claims, 
    including the transfer of funds to ``Supplemental Security Income 
    Program'' to carry out activities under section 1110 of the Social 
    Security Act.

                      Office of Inspector General

    For an additional amount for the ``Office of Inspector General'', 
$2,000,000, which shall remain available through September 30, 2012, 
for salaries and expenses necessary for oversight and audit of 
programs, projects, and activities funded in this Act.

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 801. (a) Up to 1 percent of the funds made available to the 
Department of Labor in this title may be used for the administration, 
management, and oversight of the programs, grants, and activities 
funded by such appropriation, including the evaluation of the use of 
such funds.
    (b) Funds designated for these purposes may be available for 
obligation through September 30, 2010.
    (c) Not later than 30 days after enactment of this Act, the 
Secretary of Labor shall provide an operating plan describing the 
proposed use of funds for the purposes described in (a).
    Sec. 802.  Report on the Impact of Past and Future Minimum Wage 
Increases.  (a) In General.--Section 8104 of the U.S. Troop Readiness, 
Veterans' Care, Katrina Recovery, and Iraq Accountability 
Appropriations Act, 2007 (Public Law 110-28; 121 Stat. 189) is amended 
to read as follows:

``SEC. 8104. REPORT ON THE IMPACT OF PAST AND FUTURE MINIMUM WAGE 
              INCREASES.

    ``(a) Study.--Beginning on the date that is 60 days after the date 
of enactment of this Act, and every year thereafter until the minimum 
wage in the respective territory is $7.25 per hour, the Government 
Accountability Office shall conduct a study to--
        ``(1) assess the impact of the minimum wage increases that 
    occurred in American Samoa and the Commonwealth of the Northern 
    Mariana Islands in 2007 and 2008, as required under Public Law 110-
    28, on the rates of employment and the living standards of workers, 
    with full consideration of the other factors that impact rates of 
    employment and the living standards of workers such as inflation in 
    the cost of food, energy, and other commodities; and
        ``(2) estimate the impact of any further wage increases on 
    rates of employment and the living standards of workers in American 
    Samoa and the Commonwealth of the Northern Mariana Islands, with 
    full consideration of the other factors that may impact the rates 
    of employment and the living standards of workers, including 
    assessing how the profitability of major private sector firms may 
    be impacted by wage increases in comparison to other factors such 
    as energy costs and the value of tax benefits.
    ``(b) Report.--No earlier than March 15, 2010, and not later than 
April 15, 2010, the Government Accountability Office shall transmit its 
first report to Congress concerning the findings of the study required 
under subsection (a). The Government Accountability Office shall 
transmit any subsequent reports to Congress concerning the findings of 
a study required by subsection (a) between March 15 and April 15 of 
each year.
    ``(c) Economic Information.--To provide sufficient economic data 
for the conduct of the study under subsection (a) the Bureau of the 
Census of the Department of Commerce shall include and separately 
report on American Samoa, the Commonwealth of the Northern Mariana 
Islands, Guam, and the Virgin Islands in its County Business Patterns 
data with the same regularity and to the same extent as each Bureau 
collects and reports such data for the 50 States. In the event that the 
inclusion of American Samoa, the Commonwealth of the Northern Mariana 
Islands, Guam, and the Virgin Islands in such surveys and data 
compilations requires time to structure and implement, the Bureau of 
the Census shall in the interim annually report the best available data 
that can feasibly be secured with respect to such territories. Such 
interim report shall describe the steps the Bureau will take to improve 
future data collection in the territories to achieve comparability with 
the data collected in the United States. The Bureau of the Census, 
together with the Department of the Interior, shall coordinate their 
efforts to achieve such improvements.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect on the date of enactment of this Act.
    Sec. 803.  Eligible Employees in the Recreational Marine Industry. 
Section 2(3)(F) of the Longshore and Harbor Workers' Compensation Act 
(33 U.S.C. 902(3)(F)) is amended--
        (1) by striking ``, repair or dismantle''; and
        (2) by striking the semicolon and inserting ``, or individuals 
    employed to repair any recreational vessel, or to dismantle any 
    part of a recreational vessel in connection with the repair of such 
    vessel;''.
    Sec. 804. Federal Coordinating Council for Comparative 
Effectiveness Research. (a) Establishment.--There is hereby established 
a Federal Coordinating Council for Comparative Effectiveness Research 
(in this section referred to as the ``Council'').
    (b) Purpose.--The Council shall foster optimum coordination of 
comparative effectiveness and related health services research 
conducted or supported by relevant Federal departments and agencies, 
with the goal of reducing duplicative efforts and encouraging 
coordinated and complementary use of resources.
    (c) Duties.--The Council shall--
        (1) assist the offices and agencies of the Federal Government, 
    including the Departments of Health and Human Services, Veterans 
    Affairs, and Defense, and other Federal departments or agencies, to 
    coordinate the conduct or support of comparative effectiveness and 
    related health services research; and
        (2) advise the President and Congress on--
            (A) strategies with respect to the infrastructure needs of 
        comparative effectiveness research within the Federal 
        Government; and
            (B) organizational expenditures for comparative 
        effectiveness research by relevant Federal departments and 
        agencies.
    (d) Membership.--
        (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.
    (e) Reports.--
        (1) Initial report.--Not later than June 30, 2009, the Council 
    shall submit to the President and the Congress a report containing 
    information describing current Federal activities on comparative 
    effectiveness research and recommendations for such research 
    conducted or supported from funds made available for allotment by 
    the Secretary for comparative effectiveness research in this Act.
        (2) Annual report.--The Council shall submit to the President 
    and Congress an annual report regarding its activities and 
    recommendations concerning the infrastructure needs, organizational 
    expenditures and opportunities for better coordination of 
    comparative effectiveness research by relevant Federal departments 
    and agencies.
    (f) Staffing; Support.--From funds made available for allotment by 
the Secretary for comparative effectiveness research in this Act, the 
Secretary shall make available not more than 1 percent to the Council 
for staff and administrative support.
    (g) Rules of Construction.--
        (1) Coverage.--Nothing in this section shall be construed to 
    permit the Council to mandate coverage, reimbursement, or other 
    policies for any public or private payer.
        (2) Reports and recommendations.--None of the reports submitted 
    under this section or recommendations made by the Council shall be 
    construed as mandates or clinical guidelines for payment, coverage, 
    or treatment.
    Sec. 805. Grants for Impact Aid Construction. (a) Reservation for 
Management and Oversight.--From the funds appropriated to carry out 
this section, the Secretary may reserve up to 1 percent for management 
and oversight of the activities carried out with those funds.
    (b) Construction Payments.--
        (1) Formula grants.--(A) in general.--From 40 percent of the 
    amount not reserved under subsection (a), the Secretary shall make 
    payments in accordance with section 8007(a) of the Elementary and 
    Secondary Education Act of 1965 (20 U.S.C. 7707(a)), except that 
    the amount of such payments shall be determined in accordance with 
    subparagraph (B).
            (B) Amount of payments.--The Secretary shall make a payment 
        to each local educational agency eligible for a payment under 
        section 8007(a) of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 7707(a)) in an amount that bears the same 
        relationship to the funds made available under subparagraph (A) 
        as the number of children determined under subparagraphs (B), 
        (C), and (D)(i) of section 8003(a)(1) of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7703(a)(1)(B), (C), 
        and (D)(i)) who were in average daily attendance in the local 
        educational agency for the most recent year for which such 
        information is available bears to the number of such children 
        in all the local educational agencies eligible for a payment 
        under section 8007(a) of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 7707(a)).
        (2) Competitive grants.--From 60 percent of the amount not 
    reserved under subsection (a), the Secretary--
            (A) shall award emergency grants in accordance with section 
        8007(b) of the Elementary and Secondary Education Act of 1965 
        (20 U.S.C. 7707(b)) to eligible local educational agencies to 
        enable the agencies to carry out emergency repairs of school 
        facilities; and
            (B) may award modernization grants in accordance with 
        section 8007(b) of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 7707(b)) to eligible local educational 
        agencies to enable the agencies to carry out the modernization 
        of school facilities.
        (3) Provisions not to apply.--Paragraphs (2), (3), (4), 
    (5)(A)(i), and (5)(A)(vi) of section 8007(b) of the Elementary and 
    Secondary Education Act of 1965 (20 U.S.C. 7707(b)(2), (3), (4), 
    (5)(A)(i), and (5)(A)(vi)) shall not apply to grants made under 
    paragraph (2).
        (4) Eligibility.--A local educational agency is eligible to 
    receive a grant under paragraph (2) if the local educational 
    agency--
            (A) was eligible to receive a payment under section 8002 or 
        8003 of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 7702 and 7703) for fiscal year 2008; and
            (B) has--
                (i) a total taxable assessed value of real property 
            that may be taxed for school purposes of less than 
            $100,000,000; or
                (ii) an assessed value of real property per student 
            that may be taxed for school purposes that is less than the 
            average of the assessed value of real property per student 
            that may be taxed for school purposes in the State in which 
            the local educational agency is located.
        (5) Criteria for grants.--In awarding grants under paragraph 
    (2), the Secretary shall consider the following criteria:
            (A) Whether the facility poses a health or safety threat to 
        students and school personnel, including noncompliance with 
        building codes and inaccessibility for persons with 
        disabilities, or whether the existing building capacity meets 
        the needs of the current enrollment and supports the provision 
        of comprehensive educational services to meet current standards 
        in the State in which the local educational agency is located.
            (B) The extent to which the new design and proposed 
        construction utilize energy efficient and recyclable materials.
            (C) The extent to which the new design and proposed 
        construction utilizes non-traditional or alternative building 
        methods to expedite construction and project completion and 
        maximize cost efficiency.
            (D) The feasibility of project completion within 24 months 
        from award.
            (E) The availability of other resources for the proposed 
        project.
    Sec. 806. Mandatory Pell Grants. Section 401(b)(9)(A) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(b)(9)(A)) is amended--
        (1) in clause (ii), by striking ``$2,090,000,000'' and 
    inserting ``$2,733,000,000''; and
        (2) in clause (iii), by striking ``$3,030,000,000'' and 
    inserting ``$3,861,000,000''.
    Sec. 807. (a) In General.--Notwithstanding any other provision of 
law, and in order to begin expenditures and activities under this Act 
as quickly as possible consistent with prudent management, the 
Secretary of Education may--
        (1) award fiscal year 2009 funds to States and local 
    educational agencies on the basis of eligibility determinations 
    made for the award of fiscal year 2008 funds; and
        (2) require States to make prompt allocations to local 
    educational agencies.
    (b) Interest Not to Accrue.--Notwithstanding sections 3335 and 6503 
of title 31, United States Code, or any other provision of law, the 
United States shall not be liable to any State or other entity for any 
interest or fee with respect to any funds under this Act that are 
allocated by the Secretary of Education to the State or other entity 
within 30 days of the date on which they are available for obligation.

                      TITLE IX--LEGISLATIVE BRANCH

                    GOVERNMENT ACCOUNTABILITY OFFICE

                         Salaries and Expenses

    For an additional amount for ``Salaries and Expenses'' of the 
Government Accountability Office, $25,000,000, to remain available 
until September 30, 2010.

                     GENERAL PROVISIONS--THIS TITLE

    Sec. 901.  Government Accountability Office Reviews and Reports.  
(a) Reviews and Reports.--
        (1) In General.--The Comptroller General shall conduct 
    bimonthly reviews and prepare reports on such reviews on the use by 
    selected States and localities of funds made available in this Act. 
    Such reports, along with any audits conducted by the Comptroller 
    General of such funds, shall be posted on the Internet and linked 
    to the website established under this Act by the Recovery 
    Accountability and Transparency Board.
        (2) Redactions.--Any portion of a report or audit under this 
    subsection may be redacted when made publicly available, if that 
    portion would disclose information that is not subject to 
    disclosure under section 552 of title 5, United States Code 
    (commonly known as the Freedom of Information Act).
    (b) Examination of Records.--The Comptroller General may examine 
any records related to obligations and use by any Federal, State, or 
local government agency of funds made available in this Act.
    Sec. 902.  Access of Government Accountability Office. (a) 
Access.--Each contract awarded using funds made available in this Act 
shall provide that the Comptroller General and his representatives are 
authorized--
        (1) to examine any records of the contractor or any of its 
    subcontractors, or any State or local agency administering such 
    contract, that directly pertain to, and involve transactions 
    relating to, the contract or subcontract; and
        (2) to interview any officer or employee of the contractor or 
    any of its subcontractors, or of any State or local government 
    agency administering the contract, regarding such transactions.
    (b) Relationship to Existing Authority.--Nothing in this section 
shall be interpreted to limit or restrict in any way any existing 
authority of the Comptroller General.

          TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS

                         DEPARTMENT OF DEFENSE

                      Military Construction, Army

     For an additional amount for ``Military Construction, Army'', 
$180,000,000, to remain available until September 30, 2013: Provided, 
That notwithstanding any other provision of law, such funds may be 
obligated and expended to carry out planning and design and military 
construction projects in the United States not otherwise authorized by 
law: Provided further, That of the amount provided under this heading, 
$80,000,000 shall be for child development centers, and $100,000,000 
shall be for warrior transition complexes: Provided further, That not 
later than 30 days after the date of enactment of this Act, the 
Secretary of Defense shall submit to the Committees on Appropriations 
of both Houses of Congress an expenditure plan for funds provided under 
this heading.

              Military Construction, Navy and Marine Corps

     For an additional amount for ``Military Construction, Navy and 
Marine Corps'', $280,000,000, to remain available until September 30, 
2013: Provided, That notwithstanding any other provision of law, such 
funds may be obligated and expended to carry out planning and design 
and military construction projects in the United States not otherwise 
authorized by law: Provided further, That of the amount provided under 
this heading, $100,000,000 shall be for troop housing, $80,000,000 
shall be for child development centers, and $100,000,000 shall be for 
energy conservation and alternative energy projects: Provided further, 
That not later than 30 days after the date of enactment of this Act, 
the Secretary of Defense shall submit to the Committees on 
Appropriations of both Houses of Congress an expenditure plan for funds 
provided under this heading.

                    Military Construction, Air Force

     For an additional amount for ``Military Construction, Air Force'', 
$180,000,000, to remain available until September 30, 2013: Provided, 
That notwithstanding any other provision of law, such funds may be 
obligated and expended to carry out planning and design and military 
construction projects in the United States not otherwise authorized by 
law: Provided further, That of the amount provided under this heading, 
$100,000,000 shall be for troop housing and $80,000,000 shall be for 
child development centers: Provided further, That not later than 30 
days after the date of enactment of this Act, the Secretary of Defense 
shall submit to the Committees on Appropriations of both Houses of 
Congress an expenditure plan for funds provided under this heading.

                  Military Construction, Defense-Wide

    For an additional amount for ``Military Construction, Defense-
Wide'', $1,450,000,000, to remain available until September 30, 2013: 
Provided, That notwithstanding any other provision of law, such funds 
may be obligated and expended to carry out planning and design and 
military construction projects in the United States not otherwise 
authorized by law: Provided further, That of the amount provided under 
this heading, $1,330,000,000 shall be for the construction of hospitals 
and $120,000,000 shall be for the Energy Conservation Investment 
Program: Provided further, That not later than 30 days after the date 
of enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Appropriations of both Houses of Congress an expenditure 
plan for funds provided under this heading.

               Military Construction, Army National Guard

     For an additional amount for ``Military Construction, Army 
National Guard'', $50,000,000, to remain available until September 30, 
2013: Provided, That notwithstanding any other provision of law, such 
funds may be obligated and expended to carry out planning and design 
and military construction projects in the United States not otherwise 
authorized by law: Provided further, That not later than 30 days after 
the date of enactment of this Act, the Secretary of Defense, in 
consultation with the Director of the Army National Guard, shall submit 
to the Committees on Appropriations of both Houses of Congress an 
expenditure plan for funds provided under this heading.

               Military Construction, Air National Guard

     For an additional amount for ``Military Construction, Air National 
Guard'', $50,000,000, to remain available until September 30, 2013: 
Provided, That notwithstanding any other provision of law, such funds 
may be obligated and expended to carry out planning and design and 
military construction projects in the United States not otherwise 
authorized by law: Provided further, That not later than 30 days after 
the date of enactment of this Act, the Secretary of Defense, in 
consultation with the Director of the Air National Guard, shall submit 
to the Committees on Appropriations of both Houses of Congress an 
expenditure plan for funds provided under this heading.

                   Family Housing Construction, Army

    For an additional amount for ``Family Housing Construction, Army'', 
$34,507,000, to remain available until September 30, 2013: Provided, 
That notwithstanding any other provision of law, such funds may be 
obligated and expended to carry out planning and design and military 
construction projects in the United States not otherwise authorized by 
law: Provided further, That within 30 days of enactment of this Act, 
the Secretary of Defense shall submit to the Committees on 
Appropriations of both Houses of Congress an expenditure plan for funds 
provided under this heading.

             Family Housing Operation and Maintenance, Army

    For an additional amount for ``Family Housing Operation and 
Maintenance, Army'', $3,932,000: Provided, That notwithstanding any 
other provision of law, such funds may be obligated and expended for 
maintenance and repair and minor construction projects in the United 
States not otherwise authorized by law.

                 Family Housing Construction, Air Force

    For an additional amount for ``Family Housing Construction, Air 
Force'', $80,100,000, to remain available until September 30, 2013: 
Provided, That notwithstanding any other provision of law, such funds 
may be obligated and expended to carry out planning and design and 
military construction projects in the United States not otherwise 
authorized by law: Provided further, That within 30 days of enactment 
of this Act, the Secretary of Defense shall submit to the Committees on 
Appropriations of both Houses of Congress an expenditure plan for funds 
provided under this heading.

          Family Housing Operation and Maintenance, Air Force

    For an additional amount for ``Family Housing Operation and 
Maintenance, Air Force'', $16,461,000: Provided, That notwithstanding 
any other provision of law, such funds may be obligated and expended 
for maintenance and repair and minor construction projects in the 
United States not otherwise authorized by law.

                       Homeowners Assistance Fund

    For an additional amount for ``Homeowners Assistance Fund'', 
established by section 1013 of the Demonstration Cities and 
Metropolitan Development Act of 1966, as amended (42 U.S.C. 3374), 
$555,000,000, to remain available until expended: Provided, That the 
Secretary of Defense shall submit quarterly reports to the Committees 
on Appropriations of both Houses of Congress on the expenditure of 
funds made available under this heading in this or any other Act.

                        Administrative Provision

    Sec. 1001. (a) Temporary Expansion of Homeowners Assistance Program 
to Respond to Mortgage Foreclosure and Credit Crisis. Section 1013 of 
the Demonstration Cities and Metropolitan Development Act of 1966 (42 
U.S.C. 3374) is amended--
        (1) in subsection (a)--
            (A) by redesignating paragraphs (1), (2), and (3) as 
        clauses (i), (ii), and (iii), respectively, and indenting such 
        subparagraphs, as so redesignated, 6 ems from the left margin;
            (B) by striking ``Notwithstanding any other provision of 
        law'' and inserting the following:
        ``(1) Acquisition of property at or near military installations 
    that have been ordered to be closed.--Notwithstanding any other 
    provision of law'';
            (C) by striking ``if he determines'' and inserting ``if--
            ``(A) the Secretary determines--'';
            (D) in clause (iii), as redesignated by subparagraph (A), 
        by striking the period at the end and inserting ``; or''; and
            (E) by adding at the end the following:
            ``(B) the Secretary determines--
                ``(i) that the conditions in clauses (i) and (ii) of 
            subparagraph (A) have been met;
                ``(ii) that the closing or realignment of the base or 
            installation resulted from a realignment or closure carried 
            out under the 2005 round of defense base closure and 
            realignment under the Defense Base Closure and Realignment 
            Act of 1990 (part XXIX of Public Law 101-510; 10 U.S.C. 
            2687 note);
                ``(iii) that the property was purchased by the owner 
            before July 1, 2006;
                ``(iv) that the property was sold by the owner between 
            July 1, 2006, and September 30, 2012, or an earlier end 
            date designated by the Secretary;
                ``(v) that the property is the primary residence of the 
            owner; and
                ``(vi) that the owner has not previously received 
            benefit payments authorized under this subsection.
        ``(2) Homeowner assistance for wounded members of the armed 
    forces, department of defense and united states coast guard 
    civilian employees, and their spouses.--Notwithstanding any other 
    provision of law, the Secretary of Defense is authorized to acquire 
    title to, hold, manage, and dispose of, or, in lieu thereof, to 
    reimburse for certain losses upon private sale of, or foreclosure 
    against, any property improved with a one- or two-family dwelling 
    which was at the time of the relevant wound, injury, or illness, 
    the primary residence of--
            ``(A) any member of the Armed Forces in medical transition 
        who--
                ``(i) incurred a wound, injury, or illness in the line 
            of duty during a deployment in support of the Armed Forces;
                ``(ii) is disabled to a degree of 30 percent or more as 
            a result of such wound, injury, or illness, as determined 
            by the Secretary of Defense; and
                ``(iii) is reassigned in furtherance of medical 
            treatment or rehabilitation, or due to medical retirement 
            in connection with such disability;
            ``(B) any civilian employee of the Department of Defense or 
        the United States Coast Guard who--
                ``(i) was wounded, injured, or became ill in the 
            performance of his or her duties during a forward 
            deployment occurring on or after September 11, 2001, in 
            support of the Armed Forces; and
                ``(ii) is reassigned in furtherance of medical 
            treatment, rehabilitation, or due to medical retirement 
            resulting from the sustained disability; or
            ``(C) the spouse of a member of the Armed Forces or a 
        civilian employee of the Department of Defense or the United 
        States Coast Guard if--
                ``(i) the member or employee was killed in the line of 
            duty or in the performance of his or her duties during a 
            deployment on or after September 11, 2001, in support of 
            the Armed Forces or died from a wound, injury, or illness 
            incurred in the line of duty during such a deployment; and
                ``(ii) the spouse relocates from such residence within 
            2 years after the death of such member or employee.
        ``(3) Temporary homeowner assistance for members of the armed 
    forces permanently reassigned during specified mortgage crisis.--
    Notwithstanding any other provision of law, the Secretary of 
    Defense is authorized to acquire title to, hold, manage, and 
    dispose of, or, in lieu thereof, to reimburse for certain losses 
    upon private sale of, or foreclosure against, any property improved 
    with a one- or two-family dwelling situated at or near a military 
    base or installation, if the Secretary determines--
            ``(A) that the owner is a member of the Armed Forces 
        serving on permanent assignment;
            ``(B) that the owner is permanently reassigned by order of 
        the United States Government to a duty station or home port 
        outside a 50-mile radius of the base or installation;
            ``(C) that the reassignment was ordered between February 1, 
        2006, and September 30, 2012, or an earlier end date designated 
        by the Secretary;
            ``(D) that the property was purchased by the owner before 
        July 1, 2006;
            ``(E) that the property was sold by the owner between July 
        1, 2006, and September 30, 2012, or an earlier end date 
        designated by the Secretary;
            ``(F) that the property is the primary residence of the 
        owner; and
            ``(G) that the owner has not previously received benefit 
        payments authorized under this subsection.'';
        (2) in subsection (b), by striking ``this section'' each place 
    it appears and inserting ``subsection (a)(1)'';
        (3) in subsection (c)--
            (A) by striking ``Such persons'' and inserting the 
        following:
        ``(1) Homeowner assistance related to closed military 
    installations.--
            ``(A) In general.--Such persons'';
            (B) by striking ``set forth above shall elect either (1) to 
        receive'' and inserting the following: ``set forth in 
        subsection (a)(1) shall elect either--
                ``(i) to receive'';
            (C) by striking ``difference between (A) 95 per centum'' 
        and all that follows through ``(B) the fair market value'' and 
        inserting the following: ``difference between--

                    ``(I) 95 per centum of the fair market value of 
                their property (as such value is determined by the 
                Secretary of Defense) prior to public announcement of 
                intention to close all or part of the military base or 
                installation; and
                    ``(II) the fair market value'';

            (D) by striking ``time of the sale, or (2) to receive'' and 
        inserting the following: ``time of the sale; or
                ``(ii) to receive'';
            (E) by striking ``outstanding mortgages. The Secretary may 
        also pay a person who elects to receive a cash payment under 
        clause (1) of the preceding sentence an amount'' and inserting 
        ``outstanding mortgages.
            ``(B) Reimbursement of expenses.--The Secretary may also 
        pay a person who elects to receive a cash payment under 
        subparagraph (A) an amount''; and
            (F) by striking ``best interest of the Federal Government. 
        Cash payment'' and inserting the following: ``best interest of 
        the United States.
        ``(2) Homeowner assistance for wounded individuals and their 
    spouses.--
            ``(A) In general.--Persons eligible under the criteria set 
        forth in subsection (a)(2) may elect either--
                ``(i) to receive a cash payment as compensation for 
            losses which may be or have been sustained in a private 
            sale, in an amount not to exceed the difference between--

                    ``(I) 95 per centum of prior fair market value of 
                their property (as such value is determined by the 
                Secretary of Defense); and
                    ``(II) the fair market value of such property (as 
                such value is determined by the Secretary of Defense) 
                at the time of sale; or

                ``(ii) to receive, as purchase price for their property 
            an amount not to exceed 90 per centum of prior fair market 
            value as such value is determined by the Secretary of 
            Defense, or the amount of the outstanding mortgages.
            ``(B) Determination of benefits.--The Secretary may also 
        pay a person who elects to receive a cash payment under 
        subparagraph (A) an amount that the Secretary determines 
        appropriate to reimburse the person for the costs incurred by 
        the person in the sale of the property if the Secretary 
        determines that such payment will benefit the person and is in 
        the best interest of the United States.
        ``(3) Homeowner assistance for permanently reassigned 
    individuals.--
            ``(A) In general.--Persons eligible under the criteria set 
        forth in subsection (a)(3) may elect either--
                ``(i) to receive a cash payment as compensation for 
            losses which may be or have been sustained in a private 
            sale, in an amount not to exceed the difference between--

                    ``(I) 95 per centum of prior fair market value of 
                their property (as such value is determined by the 
                Secretary of Defense); and
                    ``(II) the fair market value of such property (as 
                such value is determined by the Secretary of Defense) 
                at the time of sale; or

                ``(ii) to receive, as purchase price for their property 
            an amount not to exceed 90 per centum of prior fair market 
            value as such value is determined by the Secretary of 
            Defense, or the amount of the outstanding mortgages.
            ``(B) Determination of benefits.--The Secretary may also 
        pay a person who elects to receive a cash payment under 
        subparagraph (A) an amount that the Secretary determines 
        appropriate to reimburse the person for the costs incurred by 
        the person in the sale of the property if the Secretary 
        determines that such payment will benefit the person and is in 
        the best interest of the United States.
        ``(4) Compensation and limitations related to foreclosures and 
    encumbrances.--Cash payment'';
        (4) by striking subsection (g);
        (5) in subsection (l), by striking ``(a)(2)'' and inserting 
    ``(a)(1)(A)(ii)'';
        (6) in subsection (m), by striking ``this section'' and 
    inserting ``subsection (a)(1)'';
        (7) in subsection (n)--
            (A) in paragraph (1), by striking ``this section'' and 
        inserting ``subsection (a)(1)''; and
            (B) in paragraph (2), by striking ``this section'' and 
        inserting ``subsection (a)(1)'';
        (8) in subsection (o)--
            (A) in paragraph (1), by striking ``this section'' and 
        inserting ``subsection (a)(1)'';
            (B) in paragraph (2), by striking ``this section'' and 
        inserting ``subsection (a)(1)''; and
            (C) by striking paragraph (4); and
        (9) by adding at the end the following new subsection:
    ``(p) Definitions.--In this section:
        ``(1) the term `Armed Forces' has the meaning given the term 
    `armed forces' in section 101(a) of title 10, United States Code;
        ``(2) the term `civilian employee' has the meaning given the 
    term `employee' in section 2105(a) of title 5, United States Code;
        ``(3) the term `medical transition', in the case of a member of 
    the Armed Forces, means a member who--
            ``(A) is in Medical Holdover status;
            ``(B) is in Active Duty Medical Extension status;
            ``(C) is in Medical Hold status;
            ``(D) is in a status pending an evaluation by a medical 
        evaluation board;
            ``(E) has a complex medical need requiring six or more 
        months of medical treatment; or
            ``(F) is assigned or attached to an Army Warrior Transition 
        Unit, an Air Force Patient Squadron, a Navy Patient 
        Multidisciplinary Care Team, or a Marine Patient Affairs Team/
        Wounded Warrior Regiment; and
        ``(4) the term `nonappropriated fund instrumentality employee' 
    means a civilian employee who--
            ``(A) is a citizen of the United States; and
            ``(B) is paid from nonappropriated funds of Army and Air 
        Force Exchange Service, Navy Resale and Services Support 
        Office, Marine Corps exchanges, or any other instrumentality of 
        the United States under the jurisdiction of the Armed Forces 
        which is conducted for the comfort, pleasure, contentment, or 
        physical or mental improvement of members of the Armed 
        Forces.''.
    (b) Clerical Amendment.--Such section is further amended in the 
section heading by inserting ``and certain property owned by members of 
the Armed Forces, Department of Defense and United States Coast Guard 
civilian employees, and surviving spouses'' after ``ordered to be 
closed''.
    (c) Authority to Use Appropriated Funds.--Notwithstanding 
subsection (i) of such section, amounts appropriated or otherwise made 
available by this title under the heading ``Homeowners Assistance 
Fund'' may be used for the Homeowners Assistance Fund established under 
such section.

                     DEPARTMENT OF VETERANS AFFAIRS

                     Veterans Health Administration

                           medical facilities

     For an additional amount for ``Medical Facilities'' for non-
recurring maintenance, including energy projects, $1,000,000,000, to 
remain available until September 30, 2010: Provided, That not later 
than 30 days after the date of enactment of this Act, the Secretary of 
Veterans Affairs shall submit to the Committees on Appropriations of 
both Houses of Congress an expenditure plan for funds provided under 
this heading.

                    National Cemetery Administration

    For an additional amount for ``National Cemetery Administration'' 
for monument and memorial repairs, including energy projects, 
$50,000,000, to remain available until September 30, 2010: Provided, 
That not later than 30 days after the date of enactment of this Act, 
the Secretary of Veterans Affairs shall submit to the Committees on 
Appropriations of both Houses of Congress an expenditure plan for funds 
provided under this heading.

                      Departmental Administration

                       general operating expenses

    For an additional amount for ``General Operating Expenses'', 
$150,000,000, to remain available until September 30, 2010, for 
additional expenses related to hiring and training temporary surge 
claims processors.

                     information technology systems

    For an additional amount for ``Information Technology Systems'', 
$50,000,000, to remain available until September 30, 2010, for the 
Veterans Benefits Administration: Provided, That not later than 30 days 
after the enactment of this Act, the Secretary of Veterans Affairs 
shall submit to the Committees on Appropriations of both Houses of 
Congress an expenditure plan for funds provided under this heading.

                      office of inspector general

    For an additional amount for ``Office of Inspector General'', 
$1,000,000, to remain available until September 30, 2011, for oversight 
and audit of programs, grants and projects funded under this title.

       grants for construction of state extended care facilities

    For an additional amount for ``Grants for Construction of State 
Extended Care Facilities'', $150,000,000, to remain available until 
September 30, 2010, for grants to assist States to acquire or construct 
State nursing home and domiciliary facilities and to remodel, modify, 
or alter existing hospital, nursing home, and domiciliary facilities in 
State homes, for furnishing care to veterans as authorized by sections 
8131 through 8137 of title 38, United States Code.

                        Administrative Provision

    Sec. 1002.  Payments to Eligible Persons Who Served in the United 
States Armed Forces in the Far East During World War II.  (a) 
Findings.--Congress makes the following findings:
        (1) The Philippine islands became a United States possession in 
    1898 when they were ceded from Spain following the Spanish-American 
    War.
        (2) During World War II, Filipinos served in a variety of 
    units, some of which came under the direct control of the United 
    States Armed Forces.
        (3) The regular Philippine Scouts, the new Philippine Scouts, 
    the Guerrilla Services, and more than 100,000 members of the 
    Philippine Commonwealth Army were called into the service of the 
    United States Armed Forces of the Far East on July 26, 1941, by an 
    executive order of President Franklin D. Roosevelt.
        (4) Even after hostilities had ceased, wartime service of the 
    new Philippine Scouts continued as a matter of law until the end of 
    1946, and the force gradually disbanded and was disestablished in 
    1950.
        (5) Filipino veterans who were granted benefits prior to the 
    enactment of the so-called Rescissions Acts of 1946 (Public Laws 
    79-301 and 79-391) currently receive full benefits under laws 
    administered by the Secretary of Veterans Affairs, but under 
    section 107 of title 38, United States Code, the service of certain 
    other Filipino veterans is deemed not to be active service for 
    purposes of such laws.
        (6) These other Filipino veterans only receive certain benefits 
    under title 38, United States Code, and, depending on where they 
    legally reside, are paid such benefit amounts at reduced rates.
        (7) The benefits such veterans receive include service-
    connected compensation benefits paid under chapter 11 of title 38, 
    United States Code, dependency indemnity compensation survivor 
    benefits paid under chapter 13 of title 38, United States Code, and 
    burial benefits under chapters 23 and 24 of title 38, United States 
    Code, and such benefits are paid to beneficiaries at the rate of 
    $0.50 per dollar authorized, unless they lawfully reside in the 
    United States.
        (8) Dependents' educational assistance under chapter 35 of 
    title 38, United States Code, is also payable for the dependents of 
    such veterans at the rate of $0.50 per dollar authorized, 
    regardless of the veterans' residency.
    (b) Compensation Fund.--
        (1) In General.--There is in the general fund of the Treasury a 
    fund to be known as the ``Filipino Veterans Equity Compensation 
    Fund'' (in this section referred to as the ``compensation fund'').
        (2) Availability of Funds.--Subject to the availability of 
    appropriations for such purpose, amounts in the fund shall be 
    available to the Secretary of Veterans Affairs without fiscal year 
    limitation to make payments to eligible persons in accordance with 
    this section.
    (c) Payments.--
        (1) In General.--The Secretary may make a payment from the 
    compensation fund to an eligible person who, during the one-year 
    period beginning on the date of the enactment of this Act, submits 
    to the Secretary a claim for benefits under this section. The 
    application for the claim shall contain such information and 
    evidence as the Secretary may require.
        (2) Payment to Surviving Spouse.--If an eligible person who has 
    filed a claim for benefits under this section dies before payment 
    is made under this section, the payment under this section shall be 
    made instead to the surviving spouse, if any, of the eligible 
    person.
    (d) Eligible Persons.--An eligible person is any person who--
        (1) served--
            (A) before July 1, 1946, in the organized military forces 
        of the Government of the Commonwealth of the Philippines, while 
        such forces were in the service of the Armed Forces of the 
        United States pursuant to the military order of the President 
        dated July 26, 1941, including among such military forces 
        organized guerrilla forces under commanders appointed, 
        designated, or subsequently recognized by the Commander in 
        Chief, Southwest Pacific Area, or other competent authority in 
        the Army of the United States; or
            (B) in the Philippine Scouts under section 14 of the Armed 
        Forces Voluntary Recruitment Act of 1945 (59 Stat. 538); and
        (2) was discharged or released from service described in 
    paragraph (1) under conditions other than dishonorable.
    (e) Payment Amounts.--Each payment under this section shall be--
        (1) in the case of an eligible person who is not a citizen of 
    the United States, in the amount of $9,000; and
        (2) in the case of an eligible person who is a citizen of the 
    United States, in the amount of $15,000.
    (f) Limitation.--The Secretary may not make more than one payment 
under this section for each eligible person described in subsection 
(d).
    (g) Clarification of Treatment of Payments Under Certain Laws.--
Amounts paid to a person under this section--
        (1) shall be treated for purposes of the internal revenue laws 
    of the United States as damages for human suffering; and
        (2) shall not be included in income or resources for purposes 
    of determining--
            (A) eligibility of an individual to receive benefits 
        described in section 3803(c)(2)(C) of title 31, United States 
        Code, or the amount of such benefits;
            (B) eligibility of an individual to receive benefits under 
        title VIII of the Social Security Act, or the amount of such 
        benefits; or
            (C) eligibility of an individual for, or the amount of 
        benefits under, any other Federal or federally assisted 
        program.
    (h) Release.--
        (1) In General.--Except as provided in paragraph (2), the 
    acceptance by an eligible person or surviving spouse, as 
    applicable, of a payment under this section shall be final, and 
    shall constitute a complete release of any claim against the United 
    States by reason of any service described in subsection (d).
        (2) Payment of Prior Eligibility Status.--Nothing in this 
    section shall prohibit a person from receiving any benefit 
    (including health care, survivor, or burial benefits) which the 
    person would have been eligible to receive based on laws in effect 
    as of the day before the date of the enactment of this Act.
    (i) Recognition of Service.--The service of a person as described 
in subsection (d) is hereby recognized as active military service in 
the Armed Forces for purposes of, and to the extent provided in, this 
section.
    (j) Administration.--
        (1) The Secretary shall promptly issue application forms and 
    instructions to ensure the prompt and efficient administration of 
    the provisions of this section.
        (2) The Secretary shall administer the provisions of this 
    section in a manner consistent with applicable provisions of title 
    38, United States Code, and other provisions of law, and shall 
    apply the definitions in section 101 of such title in the 
    administration of such provisions, except to the extent otherwise 
    provided in this section.
    (k) Reports.--The Secretary shall include, in documents submitted 
to Congress by the Secretary in support of the President's budget for 
each fiscal year, detailed information on the operation of the 
compensation fund, including the number of applicants, the number of 
eligible persons receiving benefits, the amounts paid out of the 
compensation fund, and the administration of the compensation fund for 
the most recent fiscal year for which such data is available.
    (l) Authorization of Appropriation.--There is authorized to be 
appropriated to the compensation fund $198,000,000, to remain available 
until expended, to make payments under this section.

       TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS

                          DEPARTMENT OF STATE

                   Administration of Foreign Affairs

                    diplomatic and consular programs

    For an additional amount for ``Diplomatic and Consular Programs'' 
for urgent domestic facilities requirements for passport and training 
functions, $90,000,000: Provided, That the Secretary of State shall 
submit to the Committees on Appropriations within 90 days of enactment 
of this Act a detailed spending plan for funds appropriated under this 
heading: Provided further, That with respect to the funds made 
available for passport agencies, such plan shall be developed in 
consultation with the Department of Homeland Security and the General 
Services Administration and shall coordinate and co-locate, to the 
extent feasible, passport agencies with other Federal facilities.

                        capital investment fund


                      (including transfer of funds)

    For an additional amount for ``Capital Investment Fund'', 
$290,000,000, for information technology security and upgrades to 
support mission-critical operations, of which up to $38,000,000 shall 
be transferred to, and merged with, funds made available under the 
heading ``Capital Investment Fund'' of the United States Agency for 
International Development: Provided, That the Secretary of State and 
the Administrator of the United States Agency for International 
Development shall coordinate information technology systems, where 
appropriate, to increase efficiencies and eliminate redundancies, to 
include co-location of backup information management facilities, and 
shall submit to the Committees on Appropriations within 90 days of 
enactment of this Act a detailed spending plan for funds appropriated 
under this heading.

                      office of inspector general

    For an additional amount for ``Office of Inspector General'' for 
oversight requirements, $2,000,000.

                       International Commissions


  International Boundary and Water Commission, United States and Mexico

                               construction

                      (including transfer of funds)

    For an additional amount for ``Construction'' for the water 
quantity program to meet immediate repair and rehabilitation 
requirements, $220,000,000: Provided, That up to $2,000,000 may be 
transferred to, and merged with, funds available under the heading 
``International Boundary and Water Commission, United States and 
Mexico--Salaries and Expenses'': Provided further, That the Secretary 
of State shall submit to the Committees on Appropriations within 90 
days of enactment of this Act a detailed spending plan for funds 
appropriated under this heading.

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

                      DEPARTMENT OF TRANSPORTATION

                        Office of the Secretary


        supplemental discretionary grants for a national surface 
                         transportation system

    For an additional amount for capital investments in surface 
transportation infrastructure, $1,500,000,000, to remain available 
through September 30, 2011: Provided, That the Secretary of 
Transportation shall distribute funds provided under this heading as 
discretionary grants to be awarded to State and local governments or 
transit agencies on a competitive basis for projects that will have a 
significant impact on the Nation, a metropolitan area, or a region: 
Provided further, That projects eligible for funding provided under 
this heading shall include, but not be limited to, highway or bridge 
projects eligible under title 23, United States Code, including 
interstate rehabilitation, improvements to the rural collector road 
system, the reconstruction of overpasses and interchanges, bridge 
replacements, seismic retrofit projects for bridges, and road 
realignments; public transportation projects eligible under chapter 53 
of title 49, United States Code, including investments in projects 
participating in the New Starts or Small Starts programs that will 
expedite the completion of those projects and their entry into revenue 
service; passenger and freight rail transportation projects; and port 
infrastructure investments, including projects that connect ports to 
other modes of transportation and improve the efficiency of freight 
movement: Provided further, That of the amount made available under 
this paragraph, the Secretary may use an amount not to exceed 
$200,000,000 for the purpose of paying the subsidy and administrative 
costs of projects eligible for federal credit assistance under chapter 
6 of title 23, United States Code, if the Secretary finds that such use 
of the funds would advance the purposes of this paragraph: Provided 
further, That in distributing funds provided under this heading, the 
Secretary shall take such measures so as to ensure an equitable 
geographic distribution of funds and an appropriate balance in 
addressing the needs of urban and rural communities: Provided further, 
That a grant funded under this heading shall be not less than 
$20,000,000 and not greater than $300,000,000: Provided further, That 
the Secretary may waive the minimum grant size cited in the preceding 
proviso for the purpose of funding significant projects in smaller 
cities, regions, or States: Provided further, That not more than 20 
percent of the funds made available under this paragraph may be awarded 
to projects in a single State: Provided further, That the Federal share 
of the costs for which an expenditure is made under this heading may be 
up to 100 percent: Provided further, That the Secretary shall give 
priority to projects that require a contribution of Federal funds in 
order to complete an overall financing package, and to projects that 
are expected to be completed within 3 years of enactment of this Act: 
Provided further, That the Secretary shall publish criteria on which to 
base the competition for any grants awarded under this heading not 
later than 90 days after enactment of this Act: Provided further, That 
the Secretary shall require applications for funding provided under 
this heading to be submitted not later than 180 days after the 
publication of such criteria, and announce all projects selected to be 
funded from such funds not later than 1 year after enactment of this 
Act: Provided further, That projects conducted using funds provided 
under this heading must comply with the requirements of subchapter IV 
of chapter 31 of title 40, United States Code: Provided further, That 
the Secretary may retain up to $1,500,000 of the funds provided under 
this heading, and may transfer portions of those funds to the 
Administrators of the Federal Highway Administration, the Federal 
Transit Administration, the Federal Railroad Administration and the 
Maritime Administration, to fund the award and oversight of grants made 
under this heading.

                    Federal Aviation Administration

           supplemental funding for facilities and equipment

    For an additional amount for necessary investments in Federal 
Aviation Administration infrastructure, $200,000,000, to remain 
available through September 30, 2010: Provided, That funding provided 
under this heading shall be used to make improvements to power systems, 
air route traffic control centers, air traffic control towers, terminal 
radar approach control facilities, and navigation and landing 
equipment: Provided further, That priority be given to such projects or 
activities that will be completed within 2 years of enactment of this 
Act: Provided further, That amounts made available under this heading 
may be provided through grants in addition to the other instruments 
authorized under section 106(l)(6) of title 49, United States Code: 
Provided further, That the Federal share of the costs for which an 
expenditure is made under this heading shall be 100 percent: Provided 
further, That amounts provided under this heading may be used for 
expenses the agency incurs in administering this program: Provided 
further, That not more than 60 days after enactment of this Act, the 
Administrator shall establish a process for applying, reviewing and 
awarding grants and cooperative and other transaction agreements, 
including the form and content of an application, and requirements for 
the maintenance of records that are necessary to facilitate an 
effective audit of the use of the funding provided: Provided further, 
That section 50101 of title 49, United States Code, shall apply to 
funds provided under this heading.


                        Grants-In-Aid for Airports

    For an additional amount for ``Grants-In-Aid for Airports'', to 
enable the Secretary of Transportation to make grants for discretionary 
projects as authorized by subchapter 1 of chapter 471 and subchapter 1 
of chapter 475 of title 49, United States Code, and for the 
procurement, installation and commissioning of runway incursion 
prevention devices and systems at airports of such title, 
$1,100,000,000, to remain available through September 30, 2010: 
Provided, That such funds shall not be subject to apportionment 
formulas, special apportionment categories, or minimum percentages 
under chapter 471: Provided further, That the Secretary shall 
distribute funds provided under this heading as discretionary grants to 
airports, with priority given to those projects that demonstrate to his 
satisfaction their ability to be completed within 2 years of enactment 
of this Act, and serve to supplement and not supplant planned 
expenditures from airport-generated revenues or from other State and 
local sources on such activities: Provided further, That the Secretary 
shall award grants totaling not less than 50 percent of the funds made 
available under this heading within 120 days of enactment of this Act, 
and award grants for the remaining amounts not later than 1 year after 
enactment of this Act: Provided further, That the Federal share payable 
of the costs for which a grant is made under this heading shall be 100 
percent: Provided further, That the amount made available under this 
heading shall not be subject to any limitation on obligations for the 
Grants-in-Aid for Airports program set forth in any Act: Provided 
further, That the Administrator of the Federal Aviation Administration 
may retain up to 0.2 percent of the funds provided under this heading 
to fund the award and oversight by the Administrator of grants made 
under this heading.

                     Federal Highway Administration


                    highway infrastructure investment

    For an additional amount for restoration, repair, construction and 
other activities eligible under paragraph (b) of section 133 of title 
23, United States Code, and for passenger and freight rail 
transportation and port infrastructure projects eligible for assistance 
under subsection 601(a)(8) of such title, $27,500,000,000, to remain 
available through September 30, 2010: Provided, That, after making the 
set-asides required under this heading, 50 percent of the funds made 
available under this heading shall be apportioned to States using the 
formula set forth in section 104(b)(3) of title 23, United States Code, 
and the remaining funds shall be apportioned to States in the same 
ratio as the obligation limitation for fiscal year 2008 was distributed 
among the States in accordance with the formula specified in section 
120(a)(6) of division K of Public Law 110-161: Provided further, That 
funds made available under this heading shall be apportioned not later 
than 21 days after the date of enactment of this Act: Provided further, 
That in selecting projects to be carried out with funds apportioned 
under this heading, priority shall be given to projects that are 
projected for completion within a 3-year time frame, and are located in 
economically distressed areas as defined by section 301 of the Public 
Works and Economic Development Act of 1965, as amended (42 U.S.C. 
3161): Provided further, That 120 days following the date of such 
apportionment, the Secretary of Transportation shall withdraw from each 
State an amount equal to 50 percent of the funds awarded to that State 
(excluding funds suballocated within the State) less the amount of 
funding obligated (excluding funds suballocated within the State), and 
the Secretary shall redistribute such amounts to other States that have 
had no funds withdrawn under this proviso in the manner described in 
section 120(c) of division K of Public Law 110-161: Provided further, 
That 1 year following the date of such apportionment, the Secretary 
shall withdraw from each recipient of funds apportioned under this 
heading any unobligated funds, and the Secretary shall redistribute 
such amounts to States that have had no funds withdrawn under this 
proviso (excluding funds suballocated within the State) in the manner 
described in section 120(c) of division K of Public Law 110-161: 
Provided further, That at the request of a State, the Secretary of 
Transportation may provide an extension of such 1-year period only to 
the extent that he feels satisfied that the State has encountered 
extreme conditions that create an unworkable bidding environment or 
other extenuating circumstances: Provided further, That before granting 
such an extension, the Secretary shall send a letter to the House and 
Senate Committees on Appropriations that provides a thorough 
justification for the extension: Provided further, That 3 percent of 
the funds apportioned to a State under this heading shall be set aside 
for the purposes described in subsection 133(d)(2) of title 23, United 
States Code (without regard to the comparison to fiscal year 2005): 
Provided further, That 30 percent of the funds apportioned to a State 
under this heading shall be suballocated within the State in the manner 
and for the purposes described in the first sentence of subsection 
133(d)(3)(A), in subsection 133(d)(3)(B), and in subsection 
133(d)(3)(D): Provided further, That such suballocation shall be 
conducted in every State: Provided further, That funds suballocated 
within a State to urbanized areas and other areas shall not be subject 
to the redistribution of amounts required 120 days following the date 
of apportionment of funds provided under this heading: Provided 
further, That of the funds provided under this heading, $105,000,000 
shall be for the Puerto Rico highway program authorized under section 
165 of title 23, United States Code, and $45,000,000 shall be for the 
territorial highway program authorized under section 215 of title 23, 
United States Code: Provided further, That of the funds provided under 
this heading, $60,000,000 shall be for capital expenditures eligible 
under section 147 of title 23, United States Code (without regard to 
subsection(d)): Provided further, That the Secretary of Transportation 
shall distribute such $60,000,000 as competitive discretionary grants 
to States, with priority given to those projects that demonstrate to 
his satisfaction their ability to be completed within 2 years of 
enactment of this Act: Provided further, That of the funds provided 
under this heading, $550,000,000 shall be for investments in 
transportation at Indian reservations and Federal lands: Provided 
further, That of the funds identified in the preceding proviso, 
$310,000,000 shall be for the Indian Reservation Roads program, 
$170,000,000 shall be for the Park Roads and Parkways program, 
$60,000,000 shall be for the Forest Highway Program, and $10,000,000 
shall be for the Refuge Roads program: Provided further, That for 
investments at Indian reservations and Federal lands, priority shall be 
given to capital investments, and to projects and activities that can 
be completed within 2 years of enactment of this Act: Provided further, 
That 1 year following the enactment of this Act, to ensure the prompt 
use of the $550,000,000 provided for investments at Indian reservations 
and Federal lands, the Secretary shall have the authority to 
redistribute unobligated funds within the respective program for which 
the funds were appropriated: Provided further, That up to 4 percent of 
the funding provided for Indian Reservation Roads may be used by the 
Secretary of the Interior for program management and oversight and 
project-related administrative expenses: Provided further, That section 
134(f)(3)(C)(ii)(II) of title 23, United States Code, shall not apply 
to funds provided under this heading: Provided further, That of the 
funds made available under this heading, $20,000,000 shall be for 
highway surface transportation and technology training under section 
140(b) of title 23, United States Code, and $20,000,000 shall be for 
disadvantaged business enterprises bonding assistance under section 
332(e) of title 49, United States Code: Provided further, That funds 
made available under this heading shall be administered as if 
apportioned under chapter 1 of title 23, United States Code, except for 
funds made available for investments in transportation at Indian 
reservations and Federal lands, and for the territorial highway 
program, which shall be administered in accordance with chapter 2 of 
title 23, United States Code, and except for funds made available for 
disadvantaged business enterprises bonding assistance, which shall be 
administered in accordance with chapter 3 of title 49, United States 
Code: Provided further, That the Federal share payable on account of 
any project or activity carried out with funds made available under 
this heading shall be, at the option of the recipient, up to 100 
percent of the total cost thereof: Provided further, That funds made 
available by this Act shall not be obligated for the purposes 
authorized under section 115(b) of title 23, United States Code: 
Provided further, That funding provided under this heading shall be in 
addition to any and all funds provided for fiscal years 2009 and 2010 
in any other Act for ``Federal-aid Highways'' and shall not affect the 
distribution of funds provided for ``Federal-aid Highways'' in any 
other Act: Provided further, That the amount made available under this 
heading shall not be subject to any limitation on obligations for 
Federal-aid highways or highway safety construction programs set forth 
in any Act: Provided further, That section 1101(b) of Public Law 109-59 
shall apply to funds apportioned under this heading: Provided further, 
That the Administrator of the Federal Highway Administration may retain 
up to $40,000,000 of the funds provided under this heading to fund the 
oversight by the Administrator of projects and activities carried out 
with funds made available to the Federal Highway Administration in this 
Act, and such funds shall be available through September 30, 2012.

                    Federal Railroad Administration


     Capital Assistance for High Speed Rail Corridors and Intercity 
                         Passenger Rail Service

    For an additional amount for section 501 of Public Law 110-432 and 
discretionary grants to States to pay for the cost of projects 
described in paragraphs (2)(A) and (2)(B) of section 24401 of title 49, 
United States Code, subsection (b) of section 24105 of such title, 
$8,000,000,000, to remain available through September 30, 2012: 
Provided, That the Secretary of Transportation shall give priority to 
projects that support the development of intercity high speed rail 
service: Provided further, That within 60 days of the enactment of this 
Act, the Secretary shall submit to the House and Senate Committees on 
Appropriations a strategic plan that describes how the Secretary will 
use the funding provided under this heading to improve and deploy high 
speed passenger rail systems: Provided further, That within 120 days of 
enactment of this Act, the Secretary shall issue interim guidance to 
applicants covering grant terms, conditions, and procedures until final 
regulations are issued: Provided further, That such interim guidance 
shall provide separate instructions for the high speed rail corridor 
program, capital assistance for intercity passenger rail service 
grants, and congestion grants: Provided further, That the Secretary 
shall waive the requirement that a project conducted using funds 
provided under this heading be in a State rail plan developed under 
chapter 227 of title 49, United States Code: Provided further, That the 
Federal share payable of the costs for which a grant is made under this 
heading shall be, at the option of the recipient, up to 100 percent: 
Provided further, That projects conducted using funds provided under 
this heading must comply with the requirements of subchapter IV of 
chapter 31 of title 40, United States Code: Provided further, That 
section 24405 of title 49, United States Code, shall apply to funds 
provided under this heading: Provided further, That the Administrator 
of the Federal Railroad Administration may retain up to one-quarter of 
1 percent of the funds provided under this heading to fund the award 
and oversight by the Administrator of grants made under this heading, 
and funds retained for said purposes shall remain available through 
September 30, 2014.


      capital grants to the national railroad passenger corporation

    For an additional amount for the National Railroad Passenger 
Corporation (Amtrak) to enable the Secretary of Transportation to make 
capital grants to Amtrak as authorized by section 101(c) of the 
Passenger Rail Investment and Improvement Act of 2008 (Public Law 110-
432), $1,300,000,000, to remain available through September 30, 2010, 
of which $450,000,000 shall be used for capital security grants: 
Provided, That priority for the use of non-security funds shall be 
given to projects for the repair, rehabilitation, or upgrade of 
railroad assets or infrastructure, and for capital projects that expand 
passenger rail capacity including the rehabilitation of rolling stock: 
Provided further, That none of the funds under this heading shall be 
used to subsidize the operating losses of Amtrak: Provided further, 
That funds provided under this heading shall be awarded not later than 
30 days after the date of enactment of this Act: Provided further, That 
the Secretary shall take measures to ensure that projects funded under 
this heading shall be completed within 2 years of enactment of this 
Act, and shall serve to supplement and not supplant planned 
expenditures for such activities from other Federal, State, local and 
corporate sources: Provided further, That the Secretary shall certify 
to the House and Senate Committees on Appropriations in writing 
compliance with the preceding proviso: Provided further, That not more 
than 60 percent of the funds provided for non-security activities under 
this heading may be used for capital projects along the Northeast 
Corridor: Provided further, That of the funding provided under this 
heading, $5,000,000 shall be made available for the Amtrak Office of 
Inspector General and made available through September 30, 2013.

                     Federal Transit Administration


                        transit capital assistance

    For an additional amount for transit capital assistance grants 
authorized under section 5302(a)(1) of title 49, United States Code, 
$6,900,000,000, to remain available through September 30, 2010: 
Provided, That the Secretary of Transportation shall provide 80 percent 
of the funds appropriated under this heading for grants under section 
5307 of title 49, United States Code, and apportion such funds in 
accordance with section 5336 of such title (other than subsections 
(i)(1) and (j)): Provided further, That the Secretary shall apportion 
10 percent of the funds appropriated under this heading in accordance 
with section 5340 of such title: Provided further, That the Secretary 
shall provide 10 percent of the funds appropriated under this heading 
for grants under section 5311 of title 49, United States Code, and 
apportion such funds in accordance with such section: Provided further, 
That funds apportioned under this heading shall be apportioned not 
later than 21 days after the date of enactment of this Act: Provided 
further, That 180 days following the date of such apportionment, the 
Secretary shall withdraw from each urbanized area or State an amount 
equal to 50 percent of the funds apportioned to such urbanized areas or 
States less the amount of funding obligated, and the Secretary shall 
redistribute such amounts to other urbanized areas or States that have 
had no funds withdrawn under this proviso utilizing whatever method he 
deems appropriate to ensure that all funds redistributed under this 
proviso shall be utilized promptly: Provided further, That 1 year 
following the date of such apportionment, the Secretary shall withdraw 
from each urbanized area or State any unobligated funds, and the 
Secretary shall redistribute such amounts to other urbanized areas or 
States that have had no funds withdrawn under this proviso utilizing 
whatever method he deems appropriate to ensure that all funds 
redistributed under this proviso shall be utilized promptly: Provided 
further, That at the request of an urbanized area or State, the 
Secretary of Transportation may provide an extension of such 1-year 
period if he feels satisfied that the urbanized area or State has 
encountered an unworkable bidding environment or other extenuating 
circumstances: Provided further, That before granting such an 
extension, the Secretary shall send a letter to the House and Senate 
Committees on Appropriations that provides a thorough justification for 
the extension: Provided further, That of the funds provided for section 
5311 of title 49, United States Code, 2.5 percent shall be made 
available for section 5311(c)(1): Provided further, That of the funding 
provided under this heading, $100,000,000 shall be distributed as 
discretionary grants to public transit agencies for capital investments 
that will assist in reducing the energy consumption or greenhouse gas 
emissions of their public transportation systems: Provided further, 
That for such grants on energy-related investments, priority shall be 
given to projects based on the total energy savings that are projected 
to result from the investment, and projected energy savings as a 
percentage of the total energy usage of the public transit agency: 
Provided further, That applicable chapter 53 requirements shall apply 
to funding provided under this heading, except that the Federal share 
of the costs for which any grant is made under this heading shall be, 
at the option of the recipient, up to 100 percent: Provided further, 
That the amount made available under this heading shall not be subject 
to any limitation on obligations for transit programs set forth in any 
Act: Provided further, That section 1101(b) of Public Law 109-59 shall 
apply to funds appropriated under this heading: Provided further, That 
the funds appropriated under this heading shall not be comingled with 
any prior year funds: Provided further, That notwithstanding any other 
provision of law, three-quarters of 1 percent of the funds provided for 
grants under section 5307 and section 5340, and one-half of 1 percent 
of the funds provided for grants under section 5311, shall be available 
for administrative expenses and program management oversight, and such 
funds shall be available through September 30, 2012.

                fixed guideway infrastructure investment

    For an amount for capital expenditures authorized under section 
5309(b)(2) of title 49, United States Code, $750,000,000, to remain 
available through September 30, 2010: Provided, That the Secretary of 
Transportation shall apportion funds under this heading pursuant to the 
formula set forth in section 5337 of title 49, United States Code: 
Provided further, That the funds appropriated under this heading shall 
not be commingled with any prior year funds: Provided further, That 
funds made available under this heading shall be apportioned not later 
than 21 days after the date of enactment of this Act: Provided further, 
That 180 days following the date of such apportionment, the Secretary 
shall withdraw from each urbanized area an amount equal to 50 percent 
of the funds apportioned to such urbanized area less the amount of 
funding obligated, and the Secretary shall redistribute such amounts to 
other urbanized areas that have had no funds withdrawn under this 
proviso utilizing whatever method he or she deems appropriate to ensure 
that all funds redistributed under this proviso shall be utilized 
promptly: Provided further, That 1 year following the date of such 
apportionment, the Secretary shall withdraw from each urbanized area 
any unobligated funds, and the Secretary shall redistribute such 
amounts to other urbanized areas that have had no funds withdrawn under 
this proviso utilizing whatever method he or she deems appropriate to 
ensure that all funds redistributed under this proviso shall be 
utilized promptly: Provided further, That at the request of an 
urbanized area, the Secretary of Transportation may provide an 
extension of such 1-year period if he or she feels satisfied that the 
urbanized area has encountered an unworkable bidding environment or 
other extenuating circumstances: Provided further, That before granting 
such an extension, the Secretary shall send a letter to the House and 
Senate Committees on Appropriations that provides a thorough 
justification for the extension: Provided further, That applicable 
chapter 53 requirements shall apply except that the Federal share of 
the costs for which a grant is made under this heading shall be, at the 
option of the recipient, up to 100 percent: Provided further, That the 
provisions of section 1101(b) of Public Law 109-59 shall apply to funds 
made available under this heading: Provided further, That 
notwithstanding any other provision of law, up to 1 percent of the 
funds under this heading shall be available for administrative expenses 
and program management oversight and shall remain available for 
obligation until September 30, 2012.


                        capital investment grants

     For an additional amount for ``Capital Investment Grants'', as 
authorized under section 5338(c)(4) of title 49, United States Code, 
and allocated under section 5309(m)(2)(A) of such title, to enable the 
Secretary of Transportation to make discretionary grants as authorized 
by section 5309(d) and (e) of such title, $750,000,000, to remain 
available through September 30, 2010: Provided, That such amount shall 
be allocated without regard to the limitation under section 
5309(m)(2)(A)(i): Provided further, That in selecting projects to be 
funded, priority shall be given to projects that are currently in 
construction or are able to obligate funds within 150 days of enactment 
of this Act: Provided further, That the provisions of section 1101(b) 
of Public Law 109-59 shall apply to funds made available under this 
heading: Provided further, That funds appropriated under this heading 
shall not be commingled with any prior year funds: Provided further, 
That applicable chapter 53 requirements shall apply, except that 
notwithstanding any other provision of law, up to 1 percent of the 
funds provided under this heading shall be available for administrative 
expenses and program management oversight, and shall remain available 
through September 30, 2012.

                        Maritime Administration


          supplemental grants for assistance to small shipyards

    To make grants to qualified shipyards as authorized under section 
3508 of Public Law 110-417 or section 54101 of title 46, United States 
Code, $100,000,000, to remain available through September 30, 2010: 
Provided, That the Secretary of Transportation shall institute measures 
to ensure that funds provided under this heading shall be obligated 
within 180 days of the date of their distribution: Provided further, 
That the Maritime Administrator may retain and transfer to ``Maritime 
Administration, Operations and Training'' up to 2 percent of the funds 
provided under this heading to fund the award and oversight by the 
Administrator of grants made under this heading.

                      Office of Inspector General


                          salaries and expenses

    For an additional amount for necessary expenses of the Office of 
Inspector General to carry out the provisions of the Inspector General 
Act of 1978, as amended, $20,000,000, to remain available through 
September 30, 2013: Provided, That the funding made available under 
this heading shall be used for conducting audits and investigations of 
projects and activities carried out with funds made available in this 
Act to the Department of Transportation: Provided further, That the 
Inspector General shall have all necessary authority, in carrying out 
the duties specified in the Inspector General Act, as amended (5 U.S.C. 
App. 3), to investigate allegations of fraud, including false 
statements to the Government (18 U.S.C. 1001), by any person or entity 
that is subject to regulation by the Department.

            GENERAL PROVISION--DEPARTMENT OF TRANSPORTATION

    Sec. 1201. (a) Maintenance of Effort.--Not later than 30 days after 
the date of enactment of this Act, for each amount that is distributed 
to a State or agency thereof from an appropriation in this Act for a 
covered program, the Governor of the State shall certify to the 
Secretary of Transportation that the State will maintain its effort 
with regard to State funding for the types of projects that are funded 
by the appropriation. As part of this certification, the Governor shall 
submit to the Secretary of Transportation a statement identifying the 
amount of funds the State planned to expend from State sources as of 
the date of enactment of this Act during the period beginning on the 
date of enactment of this Act through September 30, 2010, for the types 
of projects that are funded by the appropriation.
    (b) Failure To Maintain Effort.--
        If a State is unable to maintain the level of effort certified 
    pursuant to subsection (a), the State will be prohibited by the 
    Secretary of Transportation from receiving additional limitation 
    pursuant to the redistribution of the limitation on obligations for 
    Federal-aid highway and highway safety construction programs that 
    occurs after August 1 for fiscal year 2011.
    (c) Periodic Reports.--
        (1) In general.--Notwithstanding any other provision of law, 
    each grant recipient shall submit to the covered agency from which 
    they received funding periodic reports on the use of the funds 
    appropriated in this Act for covered programs. Such reports shall 
    be collected and compiled by the covered agency and transmitted to 
    Congress. Covered agencies may develop such reports on behalf of 
    grant recipients to ensure the accuracy and consistency of such 
    reports.
        (2) Contents of Reports.--For amounts received under each 
    covered program by a grant recipient under this Act, the grant 
    recipient shall include in the periodic reports information 
    tracking-
            (A) the amount of Federal funds appropriated, allocated, 
        obligated, and outlayed under the appropriation;
            (B) the number of projects that have been put out to bid 
        under the appropriation and the amount of Federal funds 
        associated with such projects;
            (C) the number of projects for which contracts have been 
        awarded under the appropriation and the amount of Federal funds 
        associated with such contracts;
            (D) the number of projects for which work has begun under 
        such contracts and the amount of Federal funds associated with 
        such contracts;
            (E) the number of projects for which work has been 
        completed under such contracts and the amount of Federal funds 
        associated with such contracts;
            (F) the number of direct, on-project jobs created or 
        sustained by the Federal funds provided for projects under the 
        appropriation and, to the extent possible, the estimated 
        indirect jobs created or sustained in the associated supplying 
        industries, including the number of job-years created and the 
        total increase in employment since the date of enactment of 
        this Act; and
            (G) for each covered program report information tracking 
        the actual aggregate expenditures by each grant recipient from 
        State sources for projects eligible for funding under the 
        program during the period beginning on the date of enactment of 
        this Act through September 30, 2010, as compared to the level 
        of such expenditures that were planned to occur during such 
        period as of the date of enactment of this Act.
        (3) Timing of Reports.--Each grant recipient shall submit the 
    first of the periodic reports required under this subsection not 
    later than 90 days after the date of enactment of this Act and 
    shall submit updated reports not later than 180 days, 1 year, 2 
    years, and 3 years after such date of enactment.
    (d) Definitions.--In this section, the following definitions apply:
        (1) Covered Agency.--The term ``covered agency'' means the 
    Office of the Secretary of Transportation, the Federal Aviation 
    Administration, the Federal Highway Administration, the Federal 
    Railroad Administration, the Federal Transit Administration and the 
    Maritime Administration of the Department of Transportation.
        (2) Covered Program.--The term ``covered program'' means funds 
    appropriated in this Act for ``Supplemental Discretionary Grants 
    for a National Surface Transportation System'' to the Office of the 
    Secretary of Transportation, for ``Supplemental Funding for 
    Facilities and Equipment'' and ``Grants-in-Aid for Airports'' to 
    the Federal Aviation Administration; for ``Highway Infrastructure 
    Investment'' to the Federal Highway Administration; for ``Capital 
    Assistance for High Speed Rail Corridors and Intercity Passenger 
    Rail Service'' and ``Capital Grants to the National Railroad 
    Passenger Corporation'' to the Federal Railroad Administration; for 
    ``Transit Capital Assistance'', ``Fixed Guideway Infrastructure 
    Investment'', and ``Capital Investment Grants'' to the Federal 
    Transit Administration; and ``Supplemental Grants for Assistance to 
    Small Shipyards'' to the Maritime Administration.
        (3) Grant recipient.--The term ``grant recipient'' means a 
    State or other recipient of assistance provided under a covered 
    program in this Act. Such term does not include a Federal 
    department or agency.
    (e) Notwithstanding any other provision of law, sections 3501-3521 
of title 44, United States Code, shall not apply to the provisions of 
this section.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                       Public and Indian Housing


                       public housing capital fund

    For an additional amount for the ``Public Housing Capital Fund'' to 
carry out capital and management activities for public housing 
agencies, as authorized under section 9 of the United States Housing 
Act of 1937 (42 U.S.C. 1437g) (the ``Act''), $4,000,000,000, to remain 
available until September 30, 2011: Provided, That the Secretary of 
Housing and Urban Development shall distribute $3,000,000,000 of this 
amount by the same formula used for amounts made available in fiscal 
year 2008, except that the Secretary may determine not to allocate 
funding to public housing agencies currently designated as troubled or 
to public housing agencies that elect not to accept such funding: 
Provided further, That the Secretary shall obligate funds allocated by 
formula within 30 days of enactment of this Act: Provided further, That 
the Secretary shall make available $1,000,000,000 by competition for 
priority investments, including investments that leverage private 
sector funding or financing for renovations and energy conservation 
retrofit investments: Provided further, That the Secretary shall 
obligate competitive funding by September 30, 2009: Provided further, 
That public housing authorities shall give priority to capital projects 
that can award contracts based on bids within 120 days from the date 
the funds are made available to the public housing authorities: 
Provided further, That public housing agencies shall give priority 
consideration to the rehabilitation of vacant rental units: Provided 
further, That public housing agencies shall prioritize capital projects 
that are already underway or included in the 5-year capital fund plans 
required by the Act (42 U.S.C. 1437c-1(a)): Provided further, That 
notwithstanding any other provision of law, (1) funding provided under 
this heading may not be used for operating or rental assistance 
activities, and (2) any restriction of funding to replacement housing 
uses shall be inapplicable: Provided further, That notwithstanding any 
other provision of law, the Secretary shall institute measures to 
ensure that funds provided under this heading shall serve to supplement 
and not supplant expenditures from other Federal, State, or local 
sources or funds independently generated by the grantee: Provided 
further, That notwithstanding section 9(j), public housing agencies 
shall obligate 100 percent of the funds within 1 year of the date on 
which funds become available to the agency for obligation, shall expend 
at least 60 percent of funds within 2 years of the date on which funds 
become available to the agency for obligation, and shall expend 100 
percent of the funds within 3 years of such date: Provided further, 
That if a public housing agency fails to comply with the 1-year 
obligation requirement, the Secretary shall recapture all remaining 
unobligated funds awarded to the public housing agency and reallocate 
such funds to agencies that are in compliance with those requirements: 
Provided further, That if a public housing agency fails to comply with 
either the 2-year or the 3-year expenditure requirement, the Secretary 
shall recapture the balance of the funds awarded to the public housing 
agency and reallocate such funds to agencies that are in compliance 
with those requirements: Provided further, That in administering funds 
appropriated or otherwise made available under this heading, the 
Secretary may waive or specify alternative requirements for any 
provision of any statute or regulation in connection with the 
obligation by the Secretary or the use of these funds (except for 
requirements related to fair housing, nondiscrimination, labor 
standards, and the environment), upon a finding that such a waiver is 
necessary to expedite or facilitate the use of such funds: Provided 
further, That, in addition to waivers authorized under the previous 
proviso, the Secretary may direct that requirements relating to the 
procurement of goods and services arising under state and local laws 
and regulations shall not apply to amounts made available under this 
heading: Provided further, That of the funds made available under this 
heading, up to .5 percent shall be available for staffing, training, 
technical assistance, technology, monitoring, travel, enforcement, 
research and evaluation activities: Provided further, That funds set 
aside in the previous proviso shall remain available until September 
30, 2012: Provided further, That any funds made available under this 
heading used by the Secretary for personnel expenses related to 
administering funding under this heading shall be transferred to 
``Personnel Compensation and Benefits, Office of Public and Indian 
Housing'' and shall retain the terms and conditions of this account, 
including reprogramming provisions, except that the period of 
availability set forth in the previous proviso shall govern such 
transferred funds: Provided further, That any funds made available 
under this heading used by the Secretary for training or other 
administrative expenses shall be transferred to ``Administration, 
Operations, and Management'', for non-personnel expenses of the 
Department of Housing and Urban Development: Provided further, That any 
funds made available under this heading used by the Secretary for 
technology shall be transferred to ``Working Capital Fund''.

                  Native American Housing Block Grants

    For an additional amount for ``Native American Housing Block 
Grants'', as authorized under title I of the Native American Housing 
Assistance and Self-Determination Act of 1996 (``NAHASDA'') (25 U.S.C. 
4111 et seq.), $510,000,000 to remain available until September 30, 
2011: Provided, That $255,000,000 of the amount provided under this 
heading shall be distributed according to the same funding formula used 
in fiscal year 2008: Provided further, That the Secretary shall 
obligate funds allocated by formula within 30 days of enactment of this 
Act: Provided further, That the amounts distributed through the formula 
shall be used for new construction, acquisition, rehabilitation 
including energy efficiency and conservation, and infrastructure 
development: Provided further, That in selecting projects to be funded, 
recipients shall give priority to projects for which contracts can be 
awarded within 180 days from the date that funds are available to the 
recipients: Provided further, that the Secretary may obligate 
$255,000,000 of the amount provided under this heading for competitive 
grants to eligible entities that apply for funds authorized under 
NAHASDA: Provided further, That the Secretary shall obligate 
competitive funding by September 30, 2009: Provided further, That in 
awarding competitive funds, the Secretary shall give priority to 
projects that will spur construction and rehabilitation and will create 
employment opportunities for low-income and unemployed persons: 
Provided further, That recipients of funds under this heading shall 
obligate 100 percent of such funds within 1 year of the date funds are 
made available to a recipient, expend at least 50 percent of such funds 
within 2 years of the date on which funds become available to such 
recipients for obligation and expend 100 percent of such funds within 3 
years of such date: Provided further, That if a recipient fails to 
comply with the 2-year expenditure requirement, the Secretary shall 
recapture all remaining funds awarded to the recipient and reallocate 
such funds through the funding formula to recipients that are in 
compliance with these requirements: Provided further, That if a 
recipient fails to comply with the 3-year expenditure requirement, the 
Secretary shall recapture the balance of the funds originally awarded 
to the recipient: Provided further, That notwithstanding any other 
provision of law, the Secretary may set aside up to 2 percent of funds 
made available under this paragraph for a housing entity eligible to 
receive funding under title VIII of NAHASDA (25 U.S.C. 4221 et seq.): 
Provided further, That in administering funds appropriated or otherwise 
made available under this heading, the Secretary may waive or specify 
alternative requirements for any provision of any statute or regulation 
in connection with the obligation by the Secretary or the use of these 
funds (except for requirements related to fair housing, 
nondiscrimination, labor standards, and the environment), upon a 
finding that such a waiver is necessary to expedite or facilitate the 
use of such funds: Provided further, That of the funds made available 
under this heading, up to .5 percent shall be available for staffing, 
training, technical assistance, technology, monitoring, travel, 
enforcement, research and evaluation activities: Provided further, That 
funds set aside in the previous proviso shall remain available until 
September 30, 2012: Provided further, That any funds made available 
under this heading used by the Secretary for personnel expenses related 
to administering funding under this heading shall be transferred to 
``Personnel Compensation and Benefits, Office of Public and Indian 
Housing'' and shall retain the terms and conditions of this account, 
including reprogramming provisions, except that the period of 
availability set forth in the previous proviso shall govern such 
transferred funds: Provided further, That any funds made available 
under this heading used by the Secretary for training or other 
administrative expenses shall be transferred to ``Administration, 
Operations, and Management'', for non-personnel expenses of the 
Department of Housing and Urban Development: Provided further, That any 
funds made available under this heading used by the Secretary for 
technology shall be transferred to ``Working Capital Fund''.

                   Community Planning and Development


                        community development fund

    For an additional amount for ``Community Development Fund'' 
$1,000,000,000, to remain available until September 30, 2010 to carry 
out the community development block grant program under title I of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.): 
Provided, That the amount appropriated in this paragraph shall be 
distributed pursuant to 42 U.S.C. 5306 to grantees that received 
funding in fiscal year 2008: Provided further, That in administering 
the funds appropriated in this paragraph, the Secretary of Housing and 
Urban Development shall establish requirements to expedite the use of 
the funds: Provided further, That in selecting projects to be funded, 
recipients shall give priority to projects that can award contracts 
based on bids within 120 days from the date the funds are made 
available to the recipients: Provided further, That in administering 
funds appropriated or otherwise made available under this heading, the 
Secretary may waive or specify alternative requirements for any 
provision of any statute or regulation in connection with the 
obligation by the Secretary or the use by the recipient of these funds 
(except for requirements related to fair housing, nondiscrimination, 
labor standards, and the environment), upon a finding that such waiver 
is necessary to expedite or facilitate the timely use of such funds and 
would not be inconsistent with the overall purpose of the statute.
    For the provision of emergency assistance for the redevelopment of 
abandoned and foreclosed homes, as authorized under division B, title 
III of the Housing and Economic Recovery Act of 2008 (``the Act'') 
(Public Law 110-289) (42 U.S.C. 5301 note), $2,000,000,000, to remain 
available until September 30, 2010: Provided, That grantees shall 
expend at least 50 percent of allocated funds within 2 years of the 
date funds become available to the grantee for obligation, and 100 
percent of such funds within 3 years of such date: Provided further, 
That unless otherwise noted herein, the provisions of the Act govern 
the use of the additional funds made available under this heading: 
Provided further, That notwithstanding the provisions of sections 
2301(b) and (c)(1) and section 2302 of the Act, funding under this 
paragraph shall be allocated by competitions for which eligible 
entities shall be States, units of general local government, and 
nonprofit entities or consortia of nonprofit entities, which may submit 
proposals in partnership with for profit entities: Provided further, 
That in selecting grantees, the Secretary of Housing and Urban 
Development shall ensure that the grantees are in areas with the 
greatest number and percentage of foreclosures and can expend funding 
within the period allowed under this heading: Provided further, That 
additional award criteria for such competitions shall include 
demonstrated grantee capacity to execute projects, leveraging 
potential, concentration of investment to achieve neighborhood 
stabilization, and any additional factors determined by the Secretary 
of Housing and Urban Development: Provided further, That the Secretary 
may establish a minimum grant size: Provided further, That the 
Secretary shall publish criteria on which to base competition for any 
grants awarded under this heading not later than 75 days after the 
enactment of this Act and applications shall be due to HUD not later 
than 150 days after the enactment of this Act: Provided further, That 
the Secretary shall obligate all funding within 1 year of enactment of 
this Act: Provided further, That section 2301(d)(4) of the Act is 
repealed: Provided further, That section 2301(c)(3)(C) of the Act is 
amended to read ``establish and operate land banks for homes and 
residential properties that have been foreclosed upon'': Provided 
further, That funding used for section 2301(c)(3)(E) of the Act shall 
be available only for the redevelopment of demolished or vacant 
properties as housing: Provided further, That no amounts made available 
from a grant under this heading may be used to demolish any public 
housing (as such term is defined in section 3 of the United States 
Housing Act of 1937 (42 U.S.C. 1437a)): Provided further, That a 
grantee may not use more than 10 percent of its grant under this 
heading for demolition activities under section 2301(c)(3)(C) and (D) 
unless the Secretary determines that such use represents an appropriate 
response to local market conditions: Provided further, That the 
recipient of any grant or loan from amounts made available under this 
heading or, after the date of enactment under division B, title III of 
the Housing and Economic Recovery Act of 2008, may not refuse to lease 
a dwelling unit in housing with such loan or grant to a participant 
under section 8 of the United States Housing Act of 1937 (42 U.S.C 
1437f) because of the status of the prospective tenant as such a 
participant: Provided further, That in addition to the eligible uses in 
section 2301, the Secretary may also use up to 10 percent of the funds 
provided under this heading for grantees for the provision of capacity 
building of and support for local communities receiving funding under 
section 2301 of the Act or under this heading: Provided further, That 
in administering funds appropriated or otherwise made available under 
this section, the Secretary may waive or specify alternative 
requirements for any provision of any statute or regulation in 
connection with the obligation by the Secretary or the use of funds 
except for requirements related to fair housing, nondiscrimination, 
labor standards and the environment, upon a finding that such a waiver 
is necessary to expedite or facilitate the use of such funds: Provided 
further, That in the case of any acquisition of a foreclosed upon 
dwelling or residential real property acquired after the date of 
enactment with any amounts made available under this heading or under 
division B, title III of the Housing and Economic Recovery Act of 2008 
(Public Law 110-289), the initial successor in interest in such 
property pursuant to the foreclosure shall assume such interest subject 
to: (1) the provision by such successor in interest of a notice to 
vacate to any bona fide tenant at least 90 days before the effective 
date of such notice; and (2) the rights of any bona fide tenant, as of 
the date of such notice of foreclosure: (A) under any bona fide lease 
entered into before the notice of foreclosure to occupy the premises 
until the end of the remaining term of the lease, except that a 
successor in interest may terminate a lease effective on 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 or, after 
the date of enactment, under division B, title III of the Housing and 
Economic Recovery Act of 2008 (Public Law 110-289) may not refuse to 
lease a dwelling unit in housing assisted with such loan or grant to a 
holder of a voucher or certificate of eligibility under section 8 of 
the United States Housing Act of 1937 (42 U.S.C. 1437f) because of the 
status of the prospective tenant as such a holder: Provided further, 
That in the case of any qualified foreclosed housing for which funds 
made available under this heading or, after the date of enactment, 
under division B, title III of the Housing and Economic Recovery Act of 
2008 (Public Law 110-289) are used and in which a recipient of 
assistance under section 8(o) of the U.S. Housing Act of 1937 resides 
at the time of foreclosure, the initial successor in interest shall be 
subject to the lease and to the housing assistance payments contract 
for the occupied unit: Provided further, That vacating the property 
prior to sale shall not constitute good cause for termination of the 
tenancy unless the property is unmarketable while occupied or unless 
the owner or subsequent purchaser desires the unit for personal or 
family use: Provided further, That if a public housing agency is unable 
to make payments under the contract to the immediate successor in 
interest after foreclosures, due to (1) an action or inaction by the 
successor in interest, including the rejection of payments or the 
failure of the successor to maintain the unit in compliance with 
section 8(o)(8) of the United States Housing Act of 1937 (42 
U.S.C.1437f) or (2) an inability to identify the successor, the agency 
may use funds that would have been used to pay the rental amount on 
behalf of the family--(i) to pay for utilities that are the 
responsibility of the owner under the lease or applicable law, after 
taking reasonable steps to notify the owner that it intends to make 
payments to a utility provider in lieu of payments to the owner, except 
prior notification shall not be required in any case in which the unit 
will be or has been rendered uninhabitable due to the termination or 
threat of termination of service, in which case the public housing 
agency shall notify the owner within a reasonable time after making 
such payment; or (ii) for the family's reasonable moving costs, 
including security deposit costs: Provided further, That this paragraph 
shall not preempt any Federal, State or local law that provides more 
protections for tenants: Provided further, That of the funds made 
available under this heading, up to 1 percent shall be available for 
staffing, training, technical assistance, technology, monitoring, 
travel, enforcement, research and evaluation activities: Provided 
further, That funds set aside in the previous proviso shall remain 
available until September 30, 2012: Provided further, That any funds 
made available under this heading used by the Secretary for personnel 
expenses related to administering funding under this heading shall be 
transferred to ``Personnel Compensation and Benefits, Community 
Planning and Development'' and shall retain the terms and conditions of 
this account, including reprogramming provisions, except that the 
period of availability set forth in the previous proviso shall govern 
such transferred funds: Provided further, That any funds made available 
under this heading used by the Secretary for training or other 
administrative expenses shall be transferred to ``Administration, 
Operations, and Management'' for non-personnel expenses of the 
Department of Housing and Urban Development: Provided further, That any 
funds made available under this heading used by the Secretary for 
technology shall be transferred to ``Working Capital Fund''.

                  home investment partnerships program

    For an additional amount for capital investments in low-income 
housing tax credit projects, $2,250,000,000, to remain available until 
September 30, 2011: Provided, That such funds shall be made available 
to State housing credit agencies, as defined in section 42(h) of the 
Internal Revenue Code of 1986, and shall be apportioned among the 
States based on the percentage of HOME funds apportioned to each State 
and the participating jurisdictions therein for Fiscal Year 2008: 
Provided further, That the housing credit agencies in each State shall 
distribute these funds competitively under this heading and pursuant to 
their qualified allocation plan (as defined in section 42(m) of the 
Internal Revenue Code of 1986) to owners of projects who have received 
or receive simultaneously an award of low-income housing tax credits 
under section 42(h) of the Internal Revenue Code of 1986: Provided 
further, That housing credit agencies in each State shall commit not 
less than 75 percent of such funds within one year of the date of 
enactment of this Act, and shall demonstrate that the project owners 
shall have expended 75 percent of the funds made available under this 
heading within two years of the date of enactment of this Act, and 
shall have expended 100 percent of the funds within 3 years of the date 
of enactment of this Act: Provided further, That failure by an owner to 
expend funds within the parameters required within the previous proviso 
shall result in a redistribution of these funds by a housing credit 
agency to a more deserving project in such State, except any funds not 
expended after 3 years from enactment shall be redistributed by the 
Secretary to other States that have fully utilized the funds made 
available to them: Provided further, That projects awarded low income 
housing tax credits under section 42(h) of the IRC of 1986 in fiscal 
years 2007, 2008, or 2009 shall be eligible for funding under this 
heading: Provided further, That housing credit agencies shall give 
priority to projects that are expected to be completed within 3 years 
of enactment: Provided further, That any assistance provided to an 
eligible low income housing tax credit project under this heading shall 
be made in the same manner and be subject to the same limitations 
(including rent, income, and use restrictions, in lieu of corresponding 
limitations under the HOME program) as required by the state housing 
credit agency with respect to an award of low income housing credits 
under section 42 of the IRC of 1986: Provided further, That the housing 
credit agency shall perform asset management functions, or shall 
contract for the performance of such services, in either case, at the 
owner's expense, to ensure compliance with section 42 of the IRC of 
1986, and the long term viability of buildings funded by assistance 
under this heading: Provided further, That the term eligible basis (as 
such term is defined in such section 42) of a qualified low-income 
housing tax credit building receiving assistance under this heading 
shall not be reduced by the amount of any grant described under this 
heading: Provided further, That the Secretary shall be given access 
upon reasonable notice to a State housing credit agency to information 
related to the award of Federal funds from such housing credit agency 
pursuant to this heading and shall establish an Internet site that 
shall identify all projects selected for an award, including the amount 
of the award and such site shall provide linkage to the housing credit 
agency allocation plan which describes the process that was used to 
make the award decision: Provided further, That in administering funds 
under this heading, the Secretary may waive any provision of any 
statute or regulation that the Secretary administers in connection with 
the obligation by the Secretary or the use by the recipient of these 
funds except for requirements imposed by this heading and requirements 
related to fair housing, non-discrimination, labor standards and the 
environment, upon a finding that such waiver is required to expedite 
the use of such funds: Provided further, That for purposes of 
environmental compliance review, funds under this heading that are made 
available to State housing credit agencies for distribution to projects 
awarded low income housing tax credits shall be treated as funds under 
the HOME program and shall be subject to Section 288 of the HOME 
Investment Partnership Act.

                      homelessness prevention fund

    For homelessness prevention and rapid re-housing activities, 
$1,500,000,000, to remain available until September 30, 2011: Provided, 
That funds provided under this heading shall be used for the provision 
of short-term or medium-term rental assistance; housing relocation and 
stabilization services including housing search, mediation or outreach 
to property owners, credit repair, security or utility deposits, 
utility payments, rental assistance for a final month at a location, 
moving cost assistance, and case management; or other appropriate 
activities for homelessness prevention and rapid re-housing of persons 
who have become homeless: Provided further, That grantees receiving 
such assistance shall collect data on the use of the funds awarded and 
persons served with this assistance in the HUD Homeless Management 
Information System (``HMIS'') or other comparable database: Provided 
further, That grantees may use up to 5 percent of any grant for 
administrative costs: Provided further, That funding made available 
under this heading shall be allocated to eligible grantees (as defined 
and designated in sections 411 and 412 of subtitle B of title IV of the 
McKinney-Vento Homeless Assistance Act, (the ``Act'')) pursuant to the 
formula authorized by section 413 of the Act: Provided further, That 
the Secretary may establish a minimum grant size: Provided further, 
That grantees shall expend at least 60 percent of funds within 2 years 
of the date that funds became available to them for obligation, and 100 
percent of funds within 3 years of such date, and the Secretary may 
recapture unexpended funds in violation of the 2-year expenditure 
requirement and reallocate such funds to grantees in compliance with 
that requirement: Provided further, That the Secretary may waive 
statutory or regulatory provisions (except provisions for fair housing, 
nondiscrimination, labor standards, and the environment) necessary to 
facilitate the timely expenditure of funds: Provided further, That the 
Secretary shall publish a notice to establish such requirements as may 
be necessary to carry out the provisions of this section within 30 days 
of enactment of this Act and that this notice shall take effect upon 
issuance: Provided further, That of the funds provided under this 
heading, up to .5 percent shall be available for staffing, training, 
technical assistance, technology, monitoring, research and evaluation 
activities: Provided further, That funds set aside under the previous 
proviso shall remain available until September 30, 2012: Provided 
further, That any funds made available under this heading used by the 
Secretary for personnel expenses related to administering funding under 
this heading shall be transferred to ``Community Planning and 
Development Personnel Compensation and Benefits'' and shall retain the 
terms and conditions of this account including reprogramming provisions 
except that the period of availability set forth in the previous 
proviso shall govern such transferred funds: Provided further, That any 
funds made available under this heading used by the Secretary for 
training or other administrative expenses shall be transferred to 
``Administration, Operations, and Management'' for non-personnel 
expenses of the Department of Housing and Urban Development: Provided 
further, That any funding made available under this heading used by the 
Secretary for technology shall be transferred to ``Working Capital 
Fund.''

                            Housing Programs

  assisted housing stability and energy and green retrofit investments

    For assistance to owners of properties receiving project-based 
assistance pursuant to section 202 of the Housing Act of 1959 (12 
U.S.C. 17012), section 811 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 8013), or section 8 of the United States Housing 
Act of 1937 as amended (42 U.S.C. 1437f), $2,250,000,000, of which 
$2,000,000,000 shall be for an additional amount for paragraph (1) 
under the heading ``Project-Based Rental Assistance'' in Public Law 
110-161 for payments to owners for 12-month periods, and of which 
$250,000,000 shall be for grants or loans for energy retrofit and green 
investments in such assisted housing: Provided, That projects funded 
with grants or loans provided under this heading must comply with the 
requirements of subchapter IV of chapter 31 of title 40, United States 
Code: Provided further, That such grants or loans shall be provided 
through the policies, procedures, contracts, and transactional 
infrastructure of the authorized programs administered by the Office of 
Affordable Housing Preservation of the Department of Housing and Urban 
Development, on such terms and conditions as the Secretary of Housing 
and Urban Development deems appropriate to ensure the maintenance and 
preservation of the property, the continued operation and maintenance 
of energy efficiency technologies, and the timely expenditure of funds: 
Provided further, That the Secretary may provide incentives to owners 
to undertake energy or green retrofits as a part of such grant or loan 
terms, including, but not limited to, fees to cover investment 
oversight and implementation by said owner, or to encourage job 
creation for low-income or very low-income individuals: Provided 
further, That the Secretary may share in a portion of future property 
utility savings resulting from improvements made by grants or loans 
made available under this heading: Provided further, That the grants or 
loans shall include a financial assessment and physical inspection of 
such property: Provided further, That eligible owners must have at 
least a satisfactory management review rating, be in substantial 
compliance with applicable performance standards and legal 
requirements, and commit to an additional period of affordability 
determined by the Secretary, but of not fewer than 15 years: Provided 
further, That the Secretary shall undertake appropriate underwriting 
and oversight with respect to grant and loan transactions and may set 
aside up to 5 percent of the funds made available under this heading 
for grants or loans for such purpose: Provided further, That the 
Secretary shall take steps necessary to ensure that owners receiving 
funding for energy and green retrofit investments under this heading 
shall expend such funding within 2 years of the date they received the 
funding: Provided further, That in administering funds appropriated or 
otherwise made available under this heading, the Secretary may waive or 
specify alternative requirements for any provision of any statute or 
regulation in connection with the obligation by the Secretary or the 
use of these funds (except for requirements related to fair housing, 
nondiscrimination, labor standards, and the environment), upon a 
finding that such a waiver is necessary to expedite or facilitate the 
use of such funds: Provided further, That of the funds provided under 
this heading for grants and loans, up to 1 percent shall be available 
for staffing, training, technical assistance, technology, monitoring, 
research and evaluation activities: Provided further, That funds set 
aside in the previous proviso shall remain available until September 
30, 2012: Provided further, That funding made available under this 
heading and used by the Secretary for personnel expenses related to 
administering funding under this heading shall be transferred to 
``Housing Personnel Compensation and Benefits'' and shall retain the 
terms and conditions of this account including reprogramming provisos 
except that the period of availability set forth in the previous 
proviso shall govern such transferred funds: Provided further, That any 
funding made available under this heading used by the Secretary for 
training and other administrative expenses shall be transferred to 
``Administration, Operations and Management'' for non-personnel 
expenses of the Department of Housing and Urban Development: Provided 
further, That any funding made available under this heading used by the 
Secretary for technology shall be transferred to ``Working Capital 
Fund.''

            Office of Lead Hazard Control and Healthy Homes

    For an additional amount for the ``Lead Hazard Reduction Program'', 
as authorized by section 1011 of the Residential Lead-Based Paint 
Hazard Reduction Act of 1992, and by sections 501 and 502 of the 
Housing and Urban Development Act of 1974, $100,000,000, to remain 
available until September 30, 2011: Provided, That for purposes of 
environmental review, pursuant to the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.) and other provisions of law that 
further the purposes of such Act, a grant under the Healthy Homes 
Initiative, Operation Lead Elimination Action Plan (LEAP), or the Lead 
Technical Studies program under this heading or under prior 
appropriations Acts for such purposes under this heading, shall be 
considered to be funds for a special project for purposes of section 
305(e) of the Multifamily Housing Property Disposition Reform Act of 
1994: Provided further, That funds shall be awarded first to applicants 
which had applied under the Lead Hazard Reduction Program Notices of 
Funding Availability for fiscal year 2008, and were found in the 
application review to be qualified for award, but were not awarded 
because of funding limitations, and that any funds which remain after 
reservation of funds for such grants shall be added to the amount of 
funds to be awarded under the Lead Hazard Reduction Program Notices of 
Funding Availability for fiscal year 2009: Provided further, That each 
applicant for the Lead Hazard Program Notices of Funding Availability 
for fiscal year 2009 shall submit a detailed plan and strategy that 
demonstrates adequate capacity that is acceptable to the Secretary to 
carry out the proposed use of funds: Provided further, That recipients 
of funds under this heading shall expend at least 50 percent of such 
funds within 2 years of the date on which funds become available to 
such jurisdictions for obligation, and expend 100 percent of such funds 
within 3 years of such date: Provided further, That if a recipient 
fails to comply with the 2-year expenditure requirement, the Secretary 
shall recapture all remaining funds awarded to the recipient and 
reallocate such funds to recipients that are in compliance with those 
requirements: Provided further, That if a recipient fails to comply 
with the 3-year expenditure requirement, the Secretary shall recapture 
the balance of the funds awarded to the recipient: Provided further, 
That in administering funds appropriated or otherwise made available 
under this heading, the Secretary may waive or specify alternative 
requirements for any provision of any statute or regulation in 
connection with the obligation by the Secretary or the use of these 
funds (except for requirements related to fair housing, 
nondiscrimination, labor standards and the environment), upon a finding 
that such a waiver is necessary to expedite or facilitate the use of 
such funds: Provided further, That of the funds made available under 
this heading, up to .5 percent shall be available for staffing, 
training, technical assistance, technology, monitoring, travel, 
enforcement, research and evaluation activities: Provided further, That 
funds set aside in the previous proviso shall remain available until 
September 30, 2012: Provided further, That any funds made available 
under this heading used by the Secretary for personnel expenses related 
to administering funding under this heading shall be transferred to 
``Personnel Compensation and Benefits, Office of Lead Hazard Control 
and Healthy Homes'' and shall retain the terms and conditions of this 
account, including reprogramming provisions, except that the period of 
availability set forth in the previous proviso shall govern such 
transferred funds: Provided further, That any funds made available 
under this heading used by the Secretary for training or other 
administrative expenses shall be transferred to ``Administration, 
Operations, and Management'', for non-personnel expenses of the 
Department of Housing and Urban Development: Provided further, That any 
funds made available under this heading used by the Secretary for 
technology shall be transferred to ``Working Capital Fund''.

                     Management and Administration

                      office of inspector general

    For an additional amount for the necessary salaries and expenses of 
the Office of Inspector General in carrying out the Inspector General 
Act of 1978, as amended, $15,000,000, to remain available until 
September 30, 2013: Provided, That the Inspector General shall have 
independent authority over all personnel issues within this office.

    GENERAL PROVISIONS--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

    Sec. 1202. FHA Loan Limits for 2009. (a) Loan Limit Floor Based on 
2008 Levels.--For mortgages for which the mortgagee issues credit 
approval for the borrower during calendar year 2009, if the dollar 
amount limitation on the principal obligation of a mortgage determined 
under section 203(b)(2) of the National Housing Act (12 U.S.C. 
1709(b)(2)) for any size residence for any area is less than such 
dollar amount limitation that was in effect for such size residence for 
such area for 2008 pursuant to section 202 of the Economic Stimulus Act 
of 2008 (Public Law 110-185; 122 Stat. 620), notwithstanding any other 
provision of law, the maximum dollar amount limitation on the principal 
obligation of a mortgage for such size residence for such area for 
purposes of such section 203(b)(2) shall be considered (except for 
purposes of section 255(g) of such Act (12 U.S.C. 1715z-20(g))) to be 
such dollar amount limitation in effect for such size residence for 
such area for 2008.
    (b) Discretionary Authority for Sub-Areas.--Notwithstanding any 
other provision of law, if the Secretary of Housing and Urban 
Development determines, for any geographic area that is smaller than an 
area for which dollar amount limitations on the principal obligation of 
a mortgage are determined under section 203(b)(2) of the National 
Housing Act, that a higher such maximum dollar amount limitation is 
warranted for any particular size or sizes of residences in such sub-
area by higher median home prices in such sub-area, the Secretary may, 
for mortgages for which the mortgagee issues credit approval for the 
borrower during calendar year 2009, increase the maximum dollar amount 
limitation for such size or sizes of residences for such sub-area that 
is otherwise in effect (including pursuant to subsection (a) of this 
section), but in no case to an amount that exceeds the amount specified 
in section 202(a)(2) of the Economic Stimulus Act of 2008.
    Sec. 1203. GSE Conforming Loan Limits for 2009. (a) Loan Limit 
Floor Based on 2008 Levels.--For mortgages originated during calendar 
year 2009, if the limitation on the maximum original principal 
obligation of a mortgage that may be purchased by the Federal National 
Mortgage Association or the Federal Home Loan Mortgage Corporation 
determined under section 302(b)(2) of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 1717(b)(2)) or section 305(a)(2) of 
the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1754(a)(2)), 
respectively, for any size residence for any area is less than such 
maximum original principal obligation limitation that was in effect for 
such size residence for such area for 2008 pursuant to section 201 of 
the Economic Stimulus Act of 2008 (Public Law 110-185; 122 Stat. 619), 
notwithstanding any other provision of law, the limitation on the 
maximum original principal obligation of a mortgage for such 
Association and Corporation for such size residence for such area shall 
be such maximum limitation in effect for such size residence for such 
area for 2008.
    (b) Discretionary Authority for Sub-Areas.--Notwithstanding any 
other provision of law, if the Director of the Federal Housing Finance 
Agency determines, for any geographic area that is smaller than an area 
for which limitations on the maximum original principal obligation of a 
mortgage are determined for the Federal National Mortgage Association 
or the Federal Home Loan Mortgage Corporation, that a higher such 
maximum original principal obligation limitation is warranted for any 
particular size or sizes of residences in such sub-area by higher 
median home prices in such sub-area, the Director may, for mortgages 
originated during 2009, increase the maximum original principal 
obligation limitation for such size or sizes of residences for such 
sub-area that is otherwise in effect (including pursuant to subsection 
(a) of this section) for such Association and Corporation, but in no 
case to an amount that exceeds the amount specified in the matter 
following the comma in section 201(a)(1)(B) of the Economic Stimulus 
Act of 2008.
    Sec. 1204. FHA Reverse Mortgage Loan Limits for 2009. For mortgages 
for which the mortgagee issues credit approval for the borrower during 
calendar year 2009, the second sentence of section 255(g) of the 
National Housing Act (12 U.S.C. 1715z-20(g)) shall be considered to 
require that in no case may the benefits of insurance under such 
section 255 exceed 150 percent of the maximum dollar amount in effect 
under the sixth sentence of section 305(a)(2) of the Federal Home Loan 
Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).

               TITLE XIII--HEALTH INFORMATION TECHNOLOGY

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

    (a) Short Title.--This title (and title IV of division B) may be 
cited as the ``Health Information Technology for Economic and Clinical 
Health Act'' or the ``HITECH Act''.
    (b) Table of Contents of Title.--The table of contents of this 
title is as follows:
Sec. 13001. Short title; table of contents of title.

         Subtitle A--Promotion of Health Information Technology

      Part 1--Improving Health Care Quality, Safety, and Efficiency

Sec. 13101. ONCHIT; standards development and adoption.

         ``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY

    ``Sec. 3000. Definitions.

        ``Subtitle A--Promotion of Health Information Technology

    ``Sec. 3001. Office of the National Coordinator for Health 
              Information Technology.
    ``Sec. 3002. HIT Policy Committee.
    ``Sec. 3003. HIT Standards Committee.
    ``Sec. 3004. Process for adoption of endorsed recommendations; 
              adoption of initial set of standards, implementation 
              specifications, and certification criteria.
    ``Sec. 3005. Application and use of adopted standards and 
              implementation specifications by Federal agencies.
    ``Sec. 3006. Voluntary application and use of adopted standards and 
              implementation specifications by private entities.
    ``Sec. 3007. Federal health information technology.
    ``Sec. 3008. Transitions.
    ``Sec. 3009. Miscellaneous provisions.
Sec. 13102. Technical amendment.

  Part 2--Application and Use of Adopted Health Information Technology 
                           Standards; Reports

Sec. 13111. Coordination of Federal activities with adopted standards 
          and implementation specifications.
Sec. 13112. Application to private entities.
Sec. 13113. Study and reports.

          Subtitle B--Testing of Health Information Technology

Sec. 13201. National Institute for Standards and Technology testing.
Sec. 13202. Research and development programs.

                  Subtitle C--Grants and Loans Funding

Sec. 13301. Grant, loan, and demonstration programs.

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

    ``Sec. 3011. Immediate funding to strengthen the health information 
              technology infrastructure.
    ``Sec. 3012. Health information technology implementation 
              assistance.
    ``Sec. 3013. State grants to promote health information technology.
    ``Sec. 3014. Competitive grants to States and Indian tribes for the 
              development of loan programs to facilitate the widespread 
              adoption of certified EHR technology.
    ``Sec. 3015. Demonstration program to integrate information 
              technology into clinical education.
    ``Sec. 3016. Information technology professionals in health care.
    ``Sec. 3017. General grant and loan provisions.
    ``Sec. 3018. Authorization for appropriations.

                           Subtitle D--Privacy

Sec. 13400. Definitions.

       Part 1--Improved Privacy Provisions and Security Provisions

Sec. 13401. Application of security provisions and penalties to business 
          associates of covered entities; annual guidance on security 
          provisions.
Sec. 13402. Notification in the case of breach.
Sec. 13403. Education on health information privacy.
Sec. 13404. Application of privacy provisions and penalties to business 
          associates of covered entities.
Sec. 13405. Restrictions on certain disclosures and sales of health 
          information; accounting of certain protected health 
          information disclosures; access to certain information in 
          electronic format.
Sec. 13406. Conditions on certain contacts as part of health care 
          operations.
Sec. 13407. Temporary breach notification requirement for vendors of 
          personal health records and other non-HIPAA covered entities.
Sec. 13408. Business associate contracts required for certain entities.
Sec. 13409. Clarification of application of wrongful disclosures 
          criminal penalties.
Sec. 13410. Improved enforcement.
Sec. 13411. Audits.

  Part 2--Relationship to Other Laws; Regulatory References; Effective 
                              Date; Reports

Sec. 13421. Relationship to other laws.
Sec. 13422. Regulatory references.
Sec. 13423. Effective date.
Sec. 13424. Studies, reports, guidance.

         Subtitle A--Promotion of Health Information Technology

     PART 1--IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY

SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT AND ADOPTION.

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

         ``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY

``SEC. 3000. DEFINITIONS.

    ``In this title:
        ``(1) Certified ehr technology.--The term `certified EHR 
    technology' means a qualified electronic health record that is 
    certified pursuant to section 3001(c)(5) as meeting standards 
    adopted under section 3004 that are applicable to the type of 
    record involved (as determined by the Secretary, such as an 
    ambulatory electronic health record for office-based physicians or 
    an inpatient hospital electronic health record for hospitals).
        ``(2) Enterprise integration.--The term `enterprise 
    integration' means the electronic linkage of health care providers, 
    health plans, the government, and other interested parties, to 
    enable the electronic exchange and use of health information among 
    all the components in the health care infrastructure in accordance 
    with applicable law, and such term includes related application 
    protocols and other related standards.
        ``(3) Health care provider.--The term `health care provider' 
    includes a hospital, skilled nursing facility, nursing facility, 
    home health entity or other long term care facility, health care 
    clinic, community mental health center (as defined in section 
    1913(b)(1)), renal dialysis facility, blood center, ambulatory 
    surgical center described in section 1833(i) of the Social Security 
    Act, emergency medical services provider, Federally qualified 
    health center, group practice, a pharmacist, a pharmacy, a 
    laboratory, a physician (as defined in section 1861(r) of the 
    Social Security Act), a practitioner (as described in section 
    1842(b)(18)(C) of the Social Security Act), a provider operated by, 
    or under contract with, the Indian Health Service or by an Indian 
    tribe (as defined in the Indian Self-Determination and Education 
    Assistance Act), tribal organization, or urban Indian organization 
    (as defined in section 4 of the Indian Health Care Improvement 
    Act), a rural health clinic, a covered entity under section 340B, 
    an ambulatory surgical center described in section 1833(i) of the 
    Social Security Act, a therapist (as defined in section 
    1848(k)(3)(B)(iii) of the Social Security Act), and any other 
    category of health care facility, entity, practitioner, or 
    clinician determined appropriate by the Secretary.
        ``(4) Health information.--The term `health information' has 
    the meaning given such term in section 1171(4) of the Social 
    Security Act.
        ``(5) Health information technology.--The term `health 
    information technology' means hardware, software, integrated 
    technologies or related licenses, intellectual property, upgrades, 
    or packaged solutions sold as services that are designed for or 
    support the use by health care entities or patients for the 
    electronic creation, maintenance, access, or exchange of health 
    information
        ``(6) Health plan.--The term `health plan' has the meaning 
    given such term in section 1171(5) of the Social Security Act.
        ``(7) HIT policy committee.--The term `HIT Policy Committee' 
    means such Committee established under section 3002(a).
        ``(8) HIT standards committee.--The term `HIT Standards 
    Committee' means such Committee established under section 3003(a).
        ``(9) Individually identifiable health information.--The term 
    `individually identifiable health information' has the meaning 
    given such term in section 1171(6) of the Social Security Act.
        ``(10) Laboratory.--The term `laboratory' has the meaning given 
    such term in section 353(a).
        ``(11) National coordinator.--The term `National Coordinator' 
    means the head of the Office of the National Coordinator for Health 
    Information Technology established under section 3001(a).
        ``(12) Pharmacist.--The term `pharmacist' has the meaning given 
    such term in section 804(2) of the Federal Food, Drug, and Cosmetic 
    Act.
        ``(13) Qualified electronic health record.--The term `qualified 
    electronic health record' means an electronic record of health-
    related information on an individual that--
            ``(A) includes patient demographic and clinical health 
        information, such as medical history and problem lists; and
            ``(B) has the capacity--
                ``(i) to provide clinical decision support;
                ``(ii) to support physician order entry;
                ``(iii) to capture and query information relevant to 
            health care quality; and
                ``(iv) to exchange electronic health information with, 
            and integrate such information from other sources.
        ``(14) State.--The term `State' means each of the several 
    States, the District of Columbia, Puerto Rico, the Virgin Islands, 
    Guam, American Samoa, and the Northern Mariana Islands.

        ``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 early detection, prevention, and management of 
    chronic diseases;
        ``(10) promotes a more effective marketplace, greater 
    competition, greater systems analysis, increased consumer choice, 
    and improved outcomes in health care services; and
        ``(11) improves efforts to reduce health disparities.
    ``(c) Duties of the National Coordinator.--
        ``(1) Standards.--The National Coordinator shall--
            ``(A) review and determine whether to endorse each 
        standard, implementation specification, and certification 
        criterion for the electronic exchange and use of health 
        information that is recommended by the HIT Standards Committee 
        under section 3003 for purposes of adoption under section 3004;
            ``(B) make such determinations under subparagraph (A), and 
        report to the Secretary such determinations, not later than 45 
        days after the date the recommendation is received by the 
        Coordinator; and
            ``(C) review Federal health information technology 
        investments to ensure that Federal health information 
        technology programs are meeting the objectives of the strategic 
        plan published under paragraph (3).
        ``(2) HIT policy coordination.--
            ``(A) In general.--The National Coordinator shall 
        coordinate health information technology policy and programs of 
        the Department with those of other relevant executive branch 
        agencies with a goal of avoiding duplication of efforts and of 
        helping to ensure that each agency undertakes health 
        information technology activities primarily within the areas of 
        its greatest expertise and technical capability and in a manner 
        towards a coordinated national goal.
            ``(B) HIT policy and standards committees.--The National 
        Coordinator shall be a leading member in the establishment and 
        operations of the HIT Policy Committee and the HIT Standards 
        Committee and shall serve as a liaison among those two 
        Committees and the Federal Government.
        ``(3) Strategic plan.--
            ``(A) In general.--The National Coordinator shall, in 
        consultation with other appropriate Federal agencies (including 
        the National Institute of Standards and Technology), update the 
        Federal Health IT Strategic Plan (developed as of June 3, 2008) 
        to include specific objectives, milestones, and metrics with 
        respect to the following:
                ``(i) The electronic exchange and use of health 
            information and the enterprise integration of such 
            information.
                ``(ii) The utilization of an electronic health record 
            for each person in the United States by 2014.
                ``(iii) The incorporation of privacy and security 
            protections for the electronic exchange of an individual's 
            individually identifiable health information.
                ``(iv) Ensuring security methods to ensure appropriate 
            authorization and electronic authentication of health 
            information and specifying technologies or methodologies 
            for rendering health information unusable, unreadable, or 
            indecipherable.
                ``(v) Specifying a framework for coordination and flow 
            of recommendations and policies under this subtitle among 
            the Secretary, the National Coordinator, the HIT Policy 
            Committee, the HIT Standards Committee, and other health 
            information exchanges and other relevant entities.
                ``(vi) Methods to foster the public understanding of 
            health information technology.
                ``(vii) Strategies to enhance the use of health 
            information technology in improving the quality of health 
            care, reducing medical errors, reducing health disparities, 
            improving public health, increasing prevention and 
            coordination with community resources, and improving the 
            continuity of care among health care settings.
                ``(viii) Specific plans for ensuring that populations 
            with unique needs, such as children, are appropriately 
            addressed in the technology design, as appropriate, which 
            may include technology that automates enrollment and 
            retention for eligible individuals.
            ``(B) Collaboration.--The strategic plan shall be updated 
        through collaboration of public and private entities.
            ``(C) Measurable outcome goals.--The strategic plan update 
        shall include measurable outcome goals.
            ``(D) Publication.--The National Coordinator shall 
        republish the strategic plan, including all updates.
        ``(4) Website.--The National Coordinator shall maintain and 
    frequently update an Internet website on which there is posted 
    information on the work, schedules, reports, recommendations, and 
    other information to ensure transparency in promotion of a 
    nationwide health information technology infrastructure.
        ``(5) Certification.--
            ``(A) In general.--The National Coordinator, in 
        consultation with the Director of the National Institute of 
        Standards and Technology, shall keep or recognize a program or 
        programs for the voluntary certification of health information 
        technology as being in compliance with applicable certification 
        criteria adopted under this subtitle. Such program shall 
        include, as appropriate, testing of the technology in 
        accordance with section 13201(b) of the Health Information 
        Technology for Economic and Clinical Health Act.
            ``(B) Certification criteria described.--In this title, the 
        term `certification criteria' means, with respect to standards 
        and implementation specifications for health information 
        technology, criteria to establish that the technology meets 
        such standards and implementation specifications.
        ``(6) Reports and publications.--
            ``(A) Report on additional funding or authority needed.--
        Not later than 12 months after the date of the enactment of 
        this title, the National Coordinator shall submit to the 
        appropriate committees of jurisdiction of the House of 
        Representatives and the Senate a report on any additional 
        funding or authority the Coordinator or the HIT Policy 
        Committee or HIT Standards Committee requires to evaluate and 
        develop standards, implementation specifications, and 
        certification criteria, or to achieve full participation of 
        stakeholders in the adoption of a nationwide health information 
        technology infrastructure that allows for the electronic use 
        and exchange of health information.
            ``(B) Implementation report.--The National Coordinator 
        shall prepare a report that identifies lessons learned from 
        major public and private health care systems in their 
        implementation of health information technology, including 
        information on whether the technologies and practices developed 
        by such systems may be applicable to and usable in whole or in 
        part by other health care providers.
            ``(C) Assessment of impact of hit on communities with 
        health disparities and uninsured, underinsured, and medically 
        underserved areas.--The National Coordinator shall assess and 
        publish the impact of health information technology in 
        communities with health disparities and in areas with a high 
        proportion of individuals who are uninsured, underinsured, and 
        medically underserved individuals (including urban and rural 
        areas) and identify practices to increase the adoption of such 
        technology by health care providers in such communities, and 
        the use of health information technology to reduce and better 
        manage chronic diseases.
            ``(D) Evaluation of benefits and costs of the electronic 
        use and exchange of health information.--The National 
        Coordinator shall evaluate and publish evidence on the benefits 
        and costs of the electronic use and exchange of health 
        information and assess to whom these benefits and costs accrue.
            ``(E) Resource requirements.--The National Coordinator 
        shall estimate and publish resources required annually to reach 
        the goal of utilization of an electronic health record for each 
        person in the United States by 2014, including--
                ``(i) the required level of Federal funding;
                ``(ii) expectations for regional, State, and private 
            investment;
                ``(iii) the expected contributions by volunteers to 
            activities for the utilization of such records; and
                ``(iv) the resources needed to establish a health 
            information technology workforce sufficient to support this 
            effort (including education programs in medical informatics 
            and health information management).
        ``(7) Assistance.--The National Coordinator may provide 
    financial assistance to consumer advocacy groups and not-for-profit 
    entities that work in the public interest for purposes of defraying 
    the cost to such groups and entities to participate under, whether 
    in whole or in part, the National Technology Transfer Act of 1995 
    (15 U.S.C. 272 note).
        ``(8) Governance for nationwide health information network.--
    The 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, by reducing chronic disease, and by 
            advancing research and education.
                ``(vi) Technologies that allow individually 
            identifiable health information to be rendered unusable, 
            unreadable, or indecipherable to unauthorized individuals 
            when such information is transmitted in the nationwide 
            health information network or physically transported 
            outside of the secured, physical perimeter of a health care 
            provider, health plan, or health care clearinghouse.
                ``(vii) The use of electronic systems to ensure the 
            comprehensive collection of patient demographic data, 
            including, at a minimum, race, ethnicity, primary language, 
            and gender information.
                ``(viii) Technologies that address the needs of 
            children and other vulnerable populations.
            ``(C) Other areas for consideration.--In making 
        recommendations under subparagraph (A), the HIT Policy 
        Committee may consider the following additional areas:
                ``(i) The appropriate uses of a nationwide health 
            information infrastructure, including for purposes of--

                    ``(I) the collection of quality data and public 
                reporting;
                    ``(II) biosurveillance and public health;
                    ``(III) medical and clinical research; and
                    ``(IV) drug safety.

                ``(ii) Self-service technologies that facilitate the 
            use and exchange of patient information and reduce wait 
            times.
                ``(iii) Telemedicine technologies, in order to reduce 
            travel requirements for patients in remote areas.
                ``(iv) Technologies that facilitate home health care 
            and the monitoring of patients recuperating at home.
                ``(v) Technologies that help reduce medical errors.
                ``(vi) Technologies that facilitate the continuity of 
            care among health settings.
                ``(vii) Technologies that meet the needs of diverse 
            populations.
                ``(viii) Methods to facilitate secure access by an 
            individual to such individual's protected health 
            information.
                ``(ix) Methods, guidelines, and safeguards to 
            facilitate secure access to patient information by a family 
            member, caregiver, or guardian acting on behalf of a 
            patient due to age-related and other disability, cognitive 
            impairment, or dementia.
                ``(x) Any other technology that the HIT Policy 
            Committee finds to be among the technologies with the 
            greatest potential to improve the quality and efficiency of 
            health care.
        ``(3) Forum.--The HIT Policy Committee shall serve as a forum 
    for broad stakeholder input with specific expertise in policies 
    relating to the matters described in paragraphs (1) and (2).
        ``(4) Consistency with evaluation conducted under mippa.--
            ``(A) Requirement for consistency.--The HIT Policy 
        Committee shall ensure that recommendations made under 
        paragraph (2)(B)(vi) are consistent with the evaluation 
        conducted under section 1809(a) of the Social Security Act.
            ``(B) Scope.--Nothing in subparagraph (A) shall be 
        construed to limit the recommendations under paragraph 
        (2)(B)(vi) to the elements described in section 1809(a)(3) of 
        the Social Security Act.
            ``(C) Timing.--The requirement under subparagraph (A) shall 
        be applicable to the extent that evaluations have been 
        conducted under section 1809(a) of the Social Security Act, 
        regardless of whether the report described in subsection (b) of 
        such section has been submitted.
    ``(c) Membership and Operations.--
        ``(1) In general.--The National Coordinator shall take a 
    leading position in the establishment and operations of the HIT 
    Policy Committee.
        ``(2) Membership.--The HIT Policy Committee shall be composed 
    of members to be appointed as follows:
            ``(A) 3 members shall be appointed by the Secretary, 1 of 
        whom shall be appointed to represent the Department of Health 
        and Human Services and 1 of whom shall be a public health 
        official.
            ``(B) 1 member shall be appointed by the majority leader of 
        the Senate.
            ``(C) 1 member shall be appointed by the minority leader of 
        the Senate.
            ``(D) 1 member shall be appointed by the Speaker of the 
        House of Representatives.
            ``(E) 1 member shall be appointed by the minority leader of 
        the House of Representatives.
            ``(F) Such other members as shall be appointed by the 
        President as representatives of other relevant Federal 
        agencies.
            ``(G) 13 members shall be appointed by the Comptroller 
        General of the United States of whom--
                ``(i) 3 members shall advocates for patients or 
            consumers;
                ``(ii) 2 members shall represent health care providers, 
            one of which shall be a physician;
                ``(iii) 1 member shall be from a labor organization 
            representing health care workers;
                ``(iv) 1 member shall have expertise in health 
            information privacy and security;
                ``(v) 1 member shall have expertise in improving the 
            health of vulnerable populations;
                ``(vi) 1 member shall be from the research community;
                ``(vii) 1 member shall represent health plans or other 
            third-party payers;
                ``(viii) 1 member shall represent information 
            technology vendors;
                ``(ix) 1 member shall represent purchasers or 
            employers; and
                ``(x) 1 member shall have expertise in health care 
            quality measurement and reporting.
        ``(3) Participation.--The members of the HIT Policy Committee 
    appointed under paragraph (2) shall represent a balance among 
    various sectors of the health care system so that no single sector 
    unduly influences the recommendations of the Policy Committee.
        ``(4) Terms.--
            ``(A) In general.--The terms of the members of the HIT 
        Policy Committee shall be for 3 years, except that the 
        Comptroller General shall designate staggered terms for the 
        members first appointed.
            ``(B) Vacancies.--Any member appointed to fill a vacancy in 
        the membership of the HIT Policy Committee that occurs prior to 
        the expiration of the term for which the member's predecessor 
        was appointed shall be appointed only for the remainder of that 
        term. A member may serve after the expiration of that member's 
        term until a successor has been appointed. A vacancy in the HIT 
        Policy Committee shall be filled in the manner in which the 
        original appointment was made.
        ``(5) Outside involvement.--The HIT Policy Committee shall 
    ensure an opportunity for the participation in activities of the 
    Committee of outside advisors, including individuals with expertise 
    in the development of policies for the electronic exchange and use 
    of health information, including in the areas of health information 
    privacy and security.
        ``(6) Quorum.--A majority of the member of the HIT Policy 
    Committee shall constitute a quorum for purposes of voting, but a 
    lesser number of members may meet and hold hearings.
        ``(7) Failure of initial appointment.--If, on the date that is 
    45 days after the date of enactment of this title, an official 
    authorized under paragraph (2) to appoint one or more members of 
    the HIT Policy Committee has not appointed the full number of 
    members that such paragraph authorizes such official to appoint, 
    the Secretary is authorized to appoint such members.
        ``(8) Consideration.--The National Coordinator shall ensure 
    that the relevant and available recommendations and comments from 
    the National Committee on Vital and Health Statistics are 
    considered in the development of policies.
    ``(d) Application of FACA.--The Federal Advisory Committee Act (5 
U.S.C. App.), other than section 14 of such Act, shall apply to the HIT 
Policy Committee.
    ``(e) Publication.--The Secretary shall provide for publication in 
the Federal Register and the posting on the Internet website of the 
Office of the National Coordinator for Health Information Technology of 
all policy recommendations made by the HIT Policy Committee under this 
section.

``SEC. 3003. HIT STANDARDS COMMITTEE.

    ``(a) Establishment.--There is established a committee to be known 
as the HIT Standards Committee to recommend to the National Coordinator 
standards, implementation specifications, and certification criteria 
for the electronic exchange and use of health information for purposes 
of adoption under section 3004, consistent with the implementation of 
the strategic plan described in section 3001(c)(3) and beginning with 
the areas listed in section 3002(b)(2)(B) in accordance with policies 
developed by the HIT Policy Committee.
    ``(b) Duties.--
        ``(1) Standards development.--
            ``(A) In general.--The HIT Standards Committee shall 
        recommend to the National Coordinator standards, implementation 
        specifications, and certification criteria described in 
        subsection (a) that have been developed, harmonized, or 
        recognized by the HIT Standards Committee. The HIT Standards 
        Committee shall update such recommendations and make new 
        recommendations as appropriate, including in response to a 
        notification sent under section 3004(a)(2)(B). Such 
        recommendations shall be consistent with the latest 
        recommendations made by the HIT Policy Committee.
            ``(B) Harmonization.--The HIT Standards Committee recognize 
        harmonized or updated standards from an entity or entities for 
        the purpose of harmonizing or updating standards and 
        implementation specifications in order to achieve uniform and 
        consistent implementation of the standards and implementation 
        specifications.
            ``(C) Pilot testing of standards and implementation 
        specifications.--In the development, harmonization, or 
        recognition of standards and implementation specifications, the 
        HIT Standards Committee shall, as appropriate, provide for the 
        testing of such standards and specifications by the National 
        Institute for Standards and Technology under section 13201(a) 
        of the Health Information Technology for Economic and Clinical 
        Health Act.
            ``(D) Consistency.--The standards, implementation 
        specifications, and certification criteria recommended under 
        this subsection shall be consistent with the standards for 
        information transactions and data elements adopted pursuant to 
        section 1173 of the Social Security Act.
        ``(2) Forum.--The HIT Standards Committee shall serve as a 
    forum for the participation of a broad range of stakeholders to 
    provide input on the development, harmonization, and recognition of 
    standards, implementation specifications, and certification 
    criteria necessary for the development and adoption of a nationwide 
    health information technology infrastructure that allows for the 
    electronic use and exchange of health information.
        ``(3) Schedule.--Not later than 90 days after the date of the 
    enactment of this title, the HIT Standards Committee shall develop 
    a schedule for the assessment of policy recommendations developed 
    by the HIT Policy Committee under section 3002. The HIT Standards 
    Committee shall update such schedule annually. The Secretary shall 
    publish such schedule in the Federal Register.
        ``(4) Public input.--The HIT Standards Committee shall conduct 
    open public meetings and develop a process to allow for public 
    comment on the schedule described in paragraph (3) and 
    recommendations described in this subsection. Under such process 
    comments shall be submitted in a timely manner after the date of 
    publication of a recommendation under this subsection.
        ``(5) Consideration.--The National Coordinator shall ensure 
    that the relevant and available recommendations and comments from 
    the National Committee on Vital and Health Statistics are 
    considered in the development of standards.
    ``(c) Membership and Operations.--
        ``(1) In general.--The National Coordinator shall take a 
    leading position in the establishment and operations of the HIT 
    Standards Committee.
        ``(2) Membership.--The membership of the HIT Standards 
    Committee shall at least reflect providers, ancillary healthcare 
    workers, consumers, purchasers, health plans, technology vendors, 
    researchers, relevant Federal agencies, and individuals with 
    technical expertise on health care quality, privacy and security, 
    and on the electronic exchange and use of health information.
        ``(3) Participation.--The members of the HIT Standards 
    Committee appointed under this subsection shall represent a balance 
    among various sectors of the health care system so that no single 
    sector unduly influences the recommendations of such Committee.
        ``(4) Outside involvement.--The HIT Policy Committee shall 
    ensure an opportunity for the participation in activities of the 
    Committee of outside advisors, including individuals with expertise 
    in the development of standards for the electronic exchange and use 
    of health information, including in the areas of health information 
    privacy and security.
        ``(5) Balance among sectors.--In developing the procedures for 
    conducting the activities of the HIT Standards Committee, the HIT 
    Standards Committee shall act to ensure a balance among various 
    sectors of the health care system so that no single sector unduly 
    influences the actions of the HIT Standards Committee.
        ``(6) Assistance.--For the purposes of carrying out this 
    section, the Secretary may provide or ensure that financial 
    assistance is provided by the HIT Standards Committee to defray in 
    whole or in part any membership fees or dues charged by such 
    Committee to those consumer advocacy groups and not for profit 
    entities that work in the public interest as a part of their 
    mission.
    ``(d) Application of FACA.--The Federal Advisory Committee Act (5 
U.S.C. App.), other than section 14, shall apply to the HIT Standards 
Committee.
    ``(e) Publication.--The Secretary shall provide for publication in 
the Federal Register and the posting on the Internet website of the 
Office of the National Coordinator for Health Information Technology of 
all recommendations made by the HIT Standards Committee under this 
section.

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

    ``(a) Process for Adoption of Endorsed Recommendations.--
        ``(1) Review of endorsed standards, implementation 
    specifications, and certification criteria.--Not later than 90 days 
    after the date of receipt of standards, implementation 
    specifications, or certification criteria endorsed under section 
    3001(c), the Secretary, in consultation with representatives of 
    other relevant Federal agencies, shall jointly review such 
    standards, implementation specifications, or certification criteria 
    and shall determine whether or not to propose adoption of such 
    standards, implementation specifications, or certification 
    criteria.
        ``(2) Determination to adopt standards, implementation 
    specifications, and certification criteria.--If the Secretary 
    determines--
            ``(A) to propose adoption of any grouping of such 
        standards, implementation specifications, or certification 
        criteria, the Secretary shall, by regulation under section 553 
        of title 5, United States Code, determine whether or not to 
        adopt such grouping of standards, implementation 
        specifications, or certification criteria; or
            ``(B) not to propose adoption of any grouping of standards, 
        implementation specifications, or certification criteria, the 
        Secretary shall notify the National Coordinator and the HIT 
        Standards Committee in writing of such determination and the 
        reasons for not proposing the adoption of such recommendation.
        ``(3) Publication.--The Secretary shall provide for publication 
    in the Federal Register of all determinations made by the Secretary 
    under paragraph (1).
    ``(b) Adoption of Standards, Implementation Specifications, and 
Certification Criteria.--
        ``(1) In general.--Not later than December 31, 2009, the 
    Secretary shall, through the rulemaking process consistent with 
    subsection (a)(2)(A), adopt an initial set of standards, 
    implementation specifications, and certification criteria for the 
    areas required for consideration under section 3002(b)(2)(B). The 
    rulemaking for the initial set of standards, implementation 
    specifications, and certification criteria may be issued on an 
    interim, final basis.
        ``(2) Application of current standards, implementation 
    specifications, and certification criteria.--The standards, 
    implementation specifications, and certification criteria adopted 
    before the date of the enactment of this title through the process 
    existing through the Office of the National Coordinator for Health 
    Information Technology may be applied towards meeting the 
    requirement of paragraph (1).
        ``(3) Subsequent standards activity.--The Secretary shall adopt 
    additional standards, implementation specifications, and 
    certification criteria as necessary and consistent with the 
    schedule published under section 3003(b)(2).

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

    ``For requirements relating to the application and use by Federal 
agencies of the standards and implementation specifications adopted 
under section 3004, see section 13111 of the Health Information 
Technology for Economic and Clinical Health Act.

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

    ``(a) In General.--Except as provided under section 13112 of the 
HITECH Act, nothing in such Act or in the amendments made by such Act 
shall be construed--
        ``(1) to require a private entity to adopt or comply with a 
    standard or implementation specification adopted under section 
    3004; or
        ``(2) to provide a Federal agency authority, other than the 
    authority such agency may have under other provisions of law, to 
    require a private entity to comply with such a standard or 
    implementation specification.
    ``(b) Rule of Construction.--Nothing in this subtitle shall be 
construed to require that a private entity that enters into a contract 
with the Federal Government apply or use the standards and 
implementation specifications adopted under section 3004 with respect 
to activities not related to the contract.

``SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY.

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

``SEC. 3008. TRANSITIONS.

    ``(a) ONCHIT.--To the extent consistent with section 3001, all 
functions, personnel, assets, liabilities, and administrative actions 
applicable to the National Coordinator for Health Information 
Technology appointed under Executive Order No. 13335 or the Office of 
such National Coordinator on the date before the date of the enactment 
of this title shall be transferred to the National Coordinator 
appointed under section 3001(a) and the Office of such National 
Coordinator as of the date of the enactment of this title.
    ``(b) National EHealth Collaborative.--Nothing in sections 3002 or 
3003 or this subsection shall be construed as prohibiting the AHIC 
Successor, Inc. doing business as the National eHealth Collaborative 
from modifying its charter, duties, membership, and any other structure 
or function required to be consistent with section 3002 and 3003 so as 
to allow the Secretary to recognize such AHIC Successor, Inc. as the 
HIT Policy Committee or the HIT Standards Committee.
    ``(c) Consistency of Recommendations.--In carrying out section 
3003(b)(1)(A), until recommendations are made by the HIT Policy 
Committee, recommendations of the HIT Standards Committee shall be 
consistent with the most recent recommendations made by such AHIC 
Successor, Inc.

``SEC. 3009. MISCELLANEOUS PROVISIONS.

    ``(a) Relation to HIPAA Privacy and Security Law.--
        ``(1) In general.--With respect to the relation of this title 
    to HIPAA privacy and security law:
            ``(A) This title may not be construed as having any effect 
        on the authorities of the Secretary under HIPAA privacy and 
        security law.
            ``(B) The purposes of this title include ensuring that the 
        health information technology standards and implementation 
        specifications adopted under section 3004 take into account the 
        requirements of HIPAA privacy and security law.
        ``(2) Definition.--For purposes of this section, the term 
    `HIPAA privacy and security law' means--
            ``(A) the provisions of part C of title XI of the Social 
        Security Act, section 264 of the Health Insurance Portability 
        and Accountability Act of 1996, and subtitle D of title IV of 
        the Health Information Technology for Economic and Clinical 
        Health Act; and
            ``(B) regulations under such provisions.
    ``(b) Flexibility.--In administering the provisions of this title, 
the Secretary shall have flexibility in applying the definition of 
health care provider under section 3000(3), including the authority to 
omit certain entities listed in such definition when applying such 
definition under this title, where appropriate.''.

SEC. 13102. TECHNICAL AMENDMENT.

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

 PART 2--APPLICATION AND USE OF ADOPTED HEALTH INFORMATION TECHNOLOGY 
                           STANDARDS; REPORTS

SEC. 13111. COORDINATION OF FEDERAL ACTIVITIES WITH ADOPTED STANDARDS 
              AND IMPLEMENTATION SPECIFICATIONS.

    (a) Spending on Health Information Technology Systems.--As each 
agency (as defined by the Director of the Office of Management and 
Budget, in consultation with the Secretary of Health and Human 
Services) implements, acquires, or upgrades health information 
technology systems used for the direct exchange of individually 
identifiable health information between agencies and with non-Federal 
entities, it shall utilize, where available, health information 
technology systems and products that meet standards and implementation 
specifications adopted under section 3004 of the Public Health Service 
Act, as added by section 13101.
    (b) Federal Information Collection Activities.--With respect to a 
standard or implementation specification adopted under section 3004 of 
the Public Health Service Act, as added by section 13101, the President 
shall take measures to ensure that Federal activities involving the 
broad collection and submission of health information are consistent 
with such standard or implementation specification, respectively, 
within three years after the date of such adoption.
    (c) Application of Definitions.--The definitions contained in 
section 3000 of the Public Health Service Act, as added by section 
13101, shall apply for purposes of this part.

SEC. 13112. APPLICATION TO PRIVATE ENTITIES.

    Each agency (as defined in such Executive Order issued on August 
22, 2006, relating to promoting quality and efficient health care in 
Federal government administered or sponsored health care programs) 
shall require in contracts or agreements with health care providers, 
health plans, or health insurance issuers that as each provider, plan, 
or issuer implements, acquires, or upgrades health information 
technology systems, it shall utilize, where available, health 
information technology systems and products that meet standards and 
implementation specifications adopted under section 3004 of the Public 
Health Service Act, as added by section 13101.

SEC. 13113. STUDY AND REPORTS.

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

          Subtitle B--Testing of Health Information Technology

SEC. 13201. NATIONAL INSTITUTE FOR STANDARDS AND TECHNOLOGY TESTING.

    (a) Pilot Testing of Standards and Implementation Specifications.--
In coordination with the HIT Standards Committee established under 
section 3003 of the Public Health Service Act, as added by section 
13101, with respect to the development of standards and implementation 
specifications under such section, the Director of the National 
Institute for Standards and Technology shall test such standards and 
implementation specifications, as appropriate, in order to assure the 
efficient implementation and use of such standards and implementation 
specifications.
    (b) Voluntary Testing Program.--In coordination with the HIT 
Standards Committee established under section 3003 of the Public Health 
Service Act, as added by section 13101, with respect to the development 
of standards and implementation specifications under such section, the 
Director of the National Institute of Standards and Technology shall 
support the establishment of a conformance testing infrastructure, 
including the development of technical test beds. The development of 
this conformance testing infrastructure may include a program to 
accredit independent, non-Federal laboratories to perform testing.

SEC. 13202. RESEARCH AND DEVELOPMENT PROGRAMS.

    (a) Health Care Information Enterprise Integration Research 
Centers.--
        (1) In general.--The Director of the National Institute of 
    Standards and Technology, in consultation with the Director of the 
    National Science Foundation and other appropriate Federal agencies, 
    shall establish a program of assistance to institutions of higher 
    education (or consortia thereof which may include nonprofit 
    entities and Federal Government laboratories) to establish 
    multidisciplinary Centers for Health Care Information Enterprise 
    Integration.
        (2) Review; competition.--Grants shall be awarded under this 
    subsection on a merit-reviewed, competitive basis.
        (3) Purpose.--The purposes of the Centers described in 
    paragraph (1) shall be--
            (A) to generate innovative approaches to health care 
        information enterprise integration by conducting 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 include Federal research and development programs related 
to health information technology.

                  Subtitle C--Grants and Loans Funding

SEC. 13301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS.

    Title XXX of the Public Health Service Act, as added by section 
13101, is amended by adding at the end the following new subtitle:

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

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

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

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

    ``(a) Health Information Technology Extension Program.--To assist 
health care providers to adopt, implement, and effectively use 
certified EHR technology that allows for the electronic exchange and 
use of health information, the Secretary, acting through the Office of 
the National Coordinator, shall establish a health information 
technology extension program to provide health information technology 
assistance services to be carried out through the Department of Health 
and Human Services. The National Coordinator shall consult with other 
Federal agencies with demonstrated experience and expertise in 
information technology services, such as the National Institute of 
Standards and Technology, in developing and implementing this program.
    ``(b) Health Information Technology Research Center.--
        ``(1) In general.--The Secretary shall create a Health 
    Information Technology Research Center (in this section referred to 
    as the `Center') to provide technical assistance and develop or 
    recognize best practices to support and accelerate 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 
    (which may include costs associated with upgrading health 
    information technology so that it meets criteria necessary to be a 
    certified EHR technology);
        ``(3) train personnel in the use of such technology; or
        ``(4) improve the secure electronic exchange of health 
    information.
    ``(f) Types of Assistance.--Except as otherwise limited by 
applicable State law, amounts deposited into a Loan Fund under this 
section may only be used for the following:
        ``(1) To award loans that comply with the following:
            ``(A) The interest rate for each loan shall not exceed the 
        market interest rate.
            ``(B) The principal and interest payments on each loan 
        shall commence not later than 1 year after the date the loan 
        was awarded, and each loan shall be fully amortized not later 
        than 10 years after the date of the loan.
            ``(C) The Loan Fund shall be credited with all payments of 
        principal and interest on each loan awarded from the Loan Fund.
        ``(2) To guarantee, or purchase insurance for, a local 
    obligation (all of the proceeds of which finance a project eligible 
    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, increase access to 
    prevention, reduce chronic diseases, and enhance health care 
    quality;
        ``(3) be--
            ``(A) a school of medicine, osteopathic medicine, 
        dentistry, or pharmacy, a graduate program in behavioral or 
        mental health, or any other graduate health professions school;
            ``(B) a graduate school of nursing or physician assistant 
        studies;
            ``(C) a consortium of two or more schools described in 
        subparagraph (A) or (B); or
            ``(D) an institution with a graduate medical education 
        program in medicine, osteopathic medicine, dentistry, pharmacy, 
        nursing, or physician assistance studies;
        ``(4) provide for the collection of data regarding the 
    effectiveness of the demonstration project to be funded under the 
    grant in improving the safety of patients, the efficiency of health 
    care delivery, and in increasing the likelihood that graduates of 
    the grantee will adopt and incorporate certified EHR technology, in 
    the delivery of health care services; and
        ``(5) provide matching funds in accordance with subsection (d).
    ``(c) Use of Funds.--
        ``(1) In general.--With respect to a grant under subsection 
    (a), an eligible entity shall--
            ``(A) use grant funds in collaboration with 2 or more 
        disciplines; and
            ``(B) use grant funds to integrate certified EHR technology 
        into community-based clinical education.
        ``(2) Limitation.--An eligible entity shall not use amounts 
    received under a grant under subsection (a) to purchase hardware, 
    software, or services.
    ``(d) Financial Support.--The Secretary may not provide more than 
50 percent of the costs of any activity for which assistance is 
provided under subsection (a), except in an instance of national 
economic conditions which would render the cost-share requirement under 
this subsection detrimental to the program and upon notification to 
Congress as to the justification to waive the cost-share requirement.
    ``(e) Evaluation.--The Secretary shall take such action as may be 
necessary to evaluate the projects funded under this section and 
publish, make available, and disseminate the results of such 
evaluations on as wide a basis as is practicable.
    ``(f) Reports.--Not later than 1 year after the date of enactment 
of this title, and annually thereafter, the Secretary shall submit to 
the Committee on Health, Education, Labor, and Pensions and the 
Committee on Finance of the Senate, and the Committee on Energy and 
Commerce of the House of Representatives a report that--
        ``(1) describes the specific projects established under this 
    section; and
        ``(2) contains recommendations for Congress based on the 
    evaluation conducted under subsection (e).

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

    ``(a) In General.--The Secretary, in consultation with the Director 
of the National Science Foundation, shall provide assistance to 
institutions of higher education (or consortia thereof) to establish or 
expand medical health informatics education programs, including 
certification, undergraduate, and masters degree programs, for both 
health care and information technology students to ensure the rapid and 
effective utilization and development of health information 
technologies (in the United States health care infrastructure).
    ``(b) Activities.--Activities for which assistance may be provided 
under subsection (a) may include the following:
        ``(1) Developing and revising curricula in medical health 
    informatics and related disciplines.
        ``(2) Recruiting and retaining students to the program 
    involved.
        ``(3) Acquiring equipment necessary for student instruction in 
    these programs, including the installation of testbed networks for 
    student use.
        ``(4) Establishing or enhancing bridge programs in the health 
    informatics fields between community colleges and universities.
    ``(c) Priority.--In providing assistance under subsection (a), the 
Secretary shall give preference to the following:
        ``(1) Existing education and training programs.
        ``(2) Programs designed to be completed in less than six 
    months.

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

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

``SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS.

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

                          Subtitle D--Privacy

SEC. 13400. DEFINITIONS.

    In this subtitle, except as specified otherwise:
        (1) Breach.--
            (A) In general.--The term ``breach'' means the unauthorized 
        acquisition, access, use, or disclosure of protected health 
        information which compromises the security or privacy of such 
        information, except where an unauthorized person to whom such 
        information is disclosed would not reasonably have been able to 
        retain such information.
            (B) Exceptions.--The term ``breach'' does not include--
                (i) any unintentional acquisition, access, or use of 
            protected health information by an employee or individual 
            acting under the authority of a covered entity or business 
            associate if--

                    (I) such acquisition, access, or use was made in 
                good faith and within the course and scope of the 
                employment or other professional relationship of such 
                employee or individual, respectively, with the covered 
                entity or business associate; and
                    (II) such information is not further acquired, 
                accessed, used, or disclosed by any person; or

                (ii) any inadvertent disclosure from an individual who 
            is otherwise authorized to access protected health 
            information at a facility operated by a covered entity or 
            business associate to another similarly situated individual 
            at same facility; and
                (iii) any such information received as a result of such 
            disclosure is not further acquired, accessed, used, or 
            disclosed without authorization by any person.
        (2) Business associate.--The term ``business associate'' has 
    the meaning given such term in section 160.103 of title 45, Code of 
    Federal Regulations.
        (3) Covered entity.--The term ``covered entity'' has the 
    meaning given such term in section 160.103 of title 45, Code of 
    Federal Regulations.
        (4) Disclose.--The terms ``disclose'' and ``disclosure'' have 
    the meaning given the term ``disclosure'' in section 160.103 of 
    title 45, Code of Federal Regulations.
        (5) Electronic health record.--The term ``electronic health 
    record'' means an electronic record of health-related information 
    on an individual that is created, gathered, managed, and consulted 
    by authorized health care clinicians and staff.
        (6) Health care operations.--The term ``health care operation'' 
    has the meaning given such term in section 164.501 of title 45, 
    Code of Federal Regulations.
        (7) Health care provider.--The term ``health care provider'' 
    has the meaning given such term in section 160.103 of title 45, 
    Code of Federal Regulations.
        (8) Health plan.--The term ``health plan'' has the meaning 
    given such term in section 160.103 of title 45, Code of Federal 
    Regulations.
        (9) National coordinator.--The term ``National Coordinator'' 
    means the head of the Office of the National Coordinator for Health 
    Information Technology established under section 3001(a) of the 
    Public Health Service Act, as added by section 13101.
        (10) Payment.--The term ``payment'' has the meaning given such 
    term in section 164.501 of title 45, Code of Federal Regulations.
        (11) Personal health record.--The term ``personal health 
    record'' means an electronic record of PHR identifiable health 
    information (as defined in section 13407(f)(2)) on an individual 
    that can be drawn from multiple sources and that is managed, 
    shared, and controlled by or primarily for the individual.
        (12) Protected health information.--The term ``protected health 
    information'' has the meaning given such term in section 160.103 of 
    title 45, Code of Federal Regulations.
        (13) Secretary.--The term ``Secretary'' means the Secretary of 
    Health and Human Services.
        (14) Security.--The term ``security'' has the meaning given 
    such term in section 164.304 of title 45, Code of Federal 
    Regulations.
        (15) State.--The term ``State'' means each of the several 
    States, the District of Columbia, Puerto Rico, the Virgin Islands, 
    Guam, American Samoa, and the Northern Mariana Islands.
        (16) Treatment.--The term ``treatment'' has the meaning given 
    such term in section 164.501 of title 45, Code of Federal 
    Regulations.
        (17) Use.--The term ``use'' has the meaning given such term in 
    section 160.103 of title 45, Code of Federal Regulations.
        (18) Vendor of personal health records.--The term ``vendor of 
    personal health records'' means an entity, other than a covered 
    entity (as defined in paragraph (3)), that offers or maintains a 
    personal health record.

      PART 1--IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS

SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND PENALTIES TO 
              BUSINESS ASSOCIATES OF COVERED ENTITIES; ANNUAL GUIDANCE 
              ON SECURITY PROVISIONS.

    (a) Application of Security Provisions.--Sections 164.308, 164.310, 
164.312, and 164.316 of title 45, Code of Federal Regulations, shall 
apply to a business associate of a covered entity in the same manner 
that such sections apply to the covered entity. The additional 
requirements of this title that relate to security and that are made 
applicable with respect to covered entities shall also be applicable to 
such a business associate and shall be incorporated into the business 
associate agreement between the business associate and the covered 
entity.
    (b) Application of Civil and Criminal Penalties.--In the case of a 
business associate that violates any security provision specified in 
subsection (a), sections 1176 and 1177 of the Social Security Act (42 
U.S.C. 1320d-5, 1320d-6) shall apply to the business associate with 
respect to such violation in the same manner such sections apply to a 
covered entity that violates such security provision.
    (c) Annual Guidance.--For the first year beginning after the date 
of the enactment of this Act and annually thereafter, the Secretary of 
Health and Human Services shall, after consultation with stakeholders, 
annually issue guidance on the most effective and appropriate technical 
safeguards for use in carrying out the sections referred to in 
subsection (a) and the security standards in subpart C of part 164 of 
title 45, Code of Federal Regulations, including the use of standards 
developed under section 3002(b)(2)(B)(vi) of the Public Health Service 
Act, as added by section 13101 of this Act, as such provisions are in 
effect as of the date before the enactment of this Act.

SEC. 13402. NOTIFICATION IN THE CASE OF BREACH.

    (a) In General.--A covered entity that accesses, maintains, 
retains, modifies, records, stores, destroys, or otherwise holds, uses, 
or discloses unsecured protected health information (as defined in 
subsection (h)(1)) shall, in the case of a breach of such information 
that is discovered by the covered entity, notify each individual whose 
unsecured protected health information has been, or is reasonably 
believed by the covered entity to have been, accessed, acquired, or 
disclosed as a result of such breach.
    (b) Notification of Covered Entity by Business 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 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 
    13407(f)(3), not later than the date that is 60 days after the date 
    of the enactment of this Act, the Secretary shall, after 
    consultation with stakeholders, issue (and annually update) 
    guidance specifying the technologies and methodologies that render 
    protected health information unusable, unreadable, or 
    indecipherable to unauthorized individuals, including the use of 
    standards developed under section 3002(b)(2)(B)(vi) of the Public 
    Health Service Act, as added by section 13101 of this Act.
    (i) Report to Congress on Breaches.--
        (1) In general.--Not later than 12 months after the date of the 
    enactment of this Act and annually thereafter, the Secretary shall 
    prepare and submit to the Committee on Finance and the Committee on 
    Health, Education, Labor, and Pensions of the Senate and the 
    Committee on Ways and Means and the Committee on Energy and 
    Commerce of the House of Representatives a report containing the 
    information described in paragraph (2) regarding breaches for which 
    notice was provided to the Secretary under subsection (e)(3).
        (2) Information.--The information described in this paragraph 
    regarding breaches specified in paragraph (1) shall include--
            (A) the number and nature of such breaches; and
            (B) actions taken in response to such breaches.
    (j) Regulations; Effective Date.--To carry out this section, the 
Secretary of Health and Human Services shall promulgate interim final 
regulations by not later than the date that is 180 days after the date 
of the enactment of this title. The provisions of this section shall 
apply to breaches that are discovered on or after the date that is 30 
days after the date of publication of such interim final regulations.

SEC. 13403. EDUCATION ON HEALTH INFORMATION PRIVACY.

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

SEC. 13404. APPLICATION OF PRIVACY PROVISIONS AND PENALTIES TO BUSINESS 
              ASSOCIATES OF COVERED ENTITIES.

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

SEC. 13405. RESTRICTIONS ON CERTAIN DISCLOSURES AND SALES OF HEALTH 
              INFORMATION; ACCOUNTING OF CERTAIN PROTECTED HEALTH 
              INFORMATION DISCLOSURES; ACCESS TO CERTAIN INFORMATION IN 
              ELECTRONIC FORMAT.

    (a) Requested Restrictions on Certain Disclosures of Health 
Information.--In the case that an individual requests under paragraph 
(a)(1)(i)(A) of section 164.522 of title 45, Code of Federal 
Regulations, that a covered entity restrict the disclosure of the 
protected health information of the individual, notwithstanding 
paragraph (a)(1)(ii) of such section, the covered entity must comply 
with the requested restriction if--
        (1) except as otherwise required by law, the disclosure is to a 
    health plan for purposes of carrying out payment or health care 
    operations (and is not for purposes of carrying out treatment); and
        (2) the protected health information pertains solely to a 
    health care item or service for which the health care provider 
    involved has been paid out of pocket in full.
    (b) Disclosures Required to Be Limited to the Limited Data Set or 
the Minimum Necessary.--
        (1) In general.--
            (A) In general.--Subject to subparagraph (B), a covered 
        entity shall be treated as being in compliance with section 
        164.502(b)(1) of title 45, Code of Federal Regulations, with 
        respect to the use, disclosure, or request of protected health 
        information described in such section, only if the covered 
        entity limits such protected health information, to the extent 
        practicable, to the limited data set (as defined in section 
        164.514(e)(2) of such title) or, if needed by such entity, to 
        the minimum necessary to accomplish the intended purpose of 
        such use, disclosure, or request, respectively.
            (B) Guidance.--Not later than 18 months after the date of 
        the enactment of this section, the Secretary shall issue 
        guidance on what constitutes ``minimum necessary'' for purposes 
        of subpart E of part 164 of title 45, Code of Federal 
        Regulation. In issuing such guidance the Secretary shall take 
        into consideration the guidance under section 13424(c) and the 
        information necessary to improve patient outcomes and to 
        detect, prevent, and manage chronic disease.
            (C) Sunset.--Subparagraph (A) shall not apply on and after 
        the effective date on which the Secretary issues the guidance 
        under subparagraph (B).
        (2) Determination of minimum necessary.--For purposes of 
    paragraph (1), in the case of the disclosure of protected health 
    information, the covered entity or business associate disclosing 
    such information shall determine what constitutes the minimum 
    necessary to accomplish the intended purpose of such disclosure.
        (3) Application of exceptions.--The exceptions described in 
    section 164.502(b)(2) of title 45, Code of Federal Regulations, 
    shall apply to the requirement under paragraph (1) as of the 
    effective date described in section 13423 in the same manner that 
    such exceptions apply to section 164.502(b)(1) of such title before 
    such date.
        (4) Rule of construction.--Nothing in this subsection shall be 
    construed as affecting the use, disclosure, or request of protected 
    health information that has been de-identified.
    (c) Accounting of Certain Protected Health Information Disclosures 
Required if Covered Entity Uses Electronic Health Record.--
        ``(1) In general.--In applying section 164.528 of title 45, 
    Code of Federal Regulations, in the case that a covered entity uses 
    or maintains an electronic health record with respect to protected 
    health information--
            ``(A) the exception under paragraph (a)(1)(i) of such 
        section shall not apply to disclosures through an electronic 
        health record made by such entity of such information; and
            ``(B) an individual shall have a right to receive an 
        accounting of disclosures described in such paragraph of such 
        information made by such covered entity during only the three 
        years prior to the date on which the accounting is requested.
        ``(2) Regulations.--The Secretary shall promulgate regulations 
    on what information shall be collected about each disclosure 
    referred to in paragraph (1), not later than 6 months after the 
    date on which the Secretary adopts standards on accounting for 
    disclosure described in the section 3002(b)(2)(B)(iv) of the Public 
    Health Service Act, as added by section 13101. Such regulations 
    shall only require such information to be collected through an 
    electronic health record in a manner that takes into account the 
    interests of the individuals in learning the circumstances under 
    which their protected health information is being disclosed and 
    takes into account the administrative burden of accounting for such 
    disclosures.
        ``(3) Process.--In response to an request from an individual 
    for an accounting, a covered entity shall elect to provide either 
    an--
            ``(A) accounting, as specified under paragraph (1), for 
        disclosures of protected health information that are made by 
        such covered entity and by a business associate acting on 
        behalf of the covered entity; or
            ``(B) accounting, as specified under paragraph (1), for 
        disclosures that are made by such covered entity and provide a 
        list of all business associates acting on behalf of the covered 
        entity, including contact information for such associates (such 
        as mailing address, phone, and email address).
    A business associate included on a list under subparagraph (B) 
    shall provide an accounting of disclosures (as required under 
    paragraph (1) for a covered entity) made by the business associate 
    upon a request made by an individual directly to the business 
    associate for such an accounting.
        ``(4) Effective date.--
            ``(A) Current users of electronic records.--In the case of 
        a covered entity insofar as it acquired an electronic health 
        record as of January 1, 2009, paragraph (1) shall apply to 
        disclosures, with respect to protected health information, made 
        by the covered entity from such a record on and after January 
        1, 2014.
            ``(B) Others.--In the case of a covered entity insofar as 
        it acquires an electronic health record after January 1, 2009, 
        paragraph (1) shall apply to disclosures, with respect to 
        protected health information, made by the covered entity from 
        such record on and after the later of the following:
                ``(i) January 1, 2011; or
                ``(ii) the date that it acquires an electronic health 
            record.
            ``(C) Later date.--The Secretary may set an effective date 
        that is later that the date specified under subparagraph (A) or 
        (B) if the Secretary determines that such later date is 
        necessary, but in no case may the date specified under--
                ``(i) subparagraph (A) be later than 2016; or
                ``(ii) subparagraph (B) be later than 2013.''
    (d) Prohibition on Sale of Electronic Health Records or Protected 
Health Information.--
        (1) In general.--Except as provided in paragraph (2), a covered 
    entity or business associate shall not directly or indirectly 
    receive remuneration in exchange for any protected health 
    information of an individual unless the covered entity obtained 
    from the individual, in accordance with section 164.508 of title 
    45, Code of Federal Regulations, a valid authorization that 
    includes, in accordance with such section, a specification of 
    whether the protected health information can be further exchanged 
    for remuneration by the entity receiving protected health 
    information of that individual.
        (2) Exceptions.--Paragraph (1) shall not apply in the following 
    cases:
            (A) The purpose of the exchange is for public health 
        activities (as described in section 164.512(b) of title 45, 
        Code of Federal Regulations).
            (B) The purpose of the exchange is for research (as 
        described in sections 164.501 and 164.512(i) of title 45, Code 
        of Federal Regulations) and the price charged reflects the 
        costs of preparation and transmittal of the data for such 
        purpose.
            (C) The purpose of the exchange is for the treatment of the 
        individual, subject to any regulation that the Secretary may 
        promulgate to prevent protected health information from 
        inappropriate access, use, or disclosure.
            (D) The purpose of the exchange is the health care 
        operation specifically described in subparagraph (iv) of 
        paragraph (6) of the definition of healthcare operations in 
        section 164.501 of title 45, Code of Federal Regulations.
            (E) The purpose of the exchange is for remuneration that is 
        provided by a covered entity to a business associate for 
        activities involving the exchange of protected health 
        information that the business associate undertakes on behalf of 
        and at the specific request of the covered entity pursuant to a 
        business associate agreement.
            (F) The purpose of the exchange is to provide an individual 
        with a copy of the individual's protected health information 
        pursuant to section 164.524 of title 45, Code of Federal 
        Regulations.
            (G) The purpose of the exchange is otherwise determined by 
        the Secretary in regulations to be similarly necessary and 
        appropriate as the exceptions provided in subparagraphs (A) 
        through (F).
        (3) Regulations.--Not later than 18 months after the date of 
    enactment of this title, the Secretary shall promulgate regulations 
    to carry out this subsection. In promulgating such regulations, the 
    Secretary--
            (A) shall evaluate the impact of restricting the exception 
        described in paragraph (2)(A) to require that the price charged 
        for the purposes described in such paragraph reflects the costs 
        of the preparation and transmittal of the data for such 
        purpose, on research or public health activities, including 
        those conducted by or for the use of the Food and Drug 
        Administration; and
            (B) may further restrict the exception described in 
        paragraph (2)(A) to require that the price charged for the 
        purposes described in such paragraph reflects the costs of the 
        preparation and transmittal of the data for such purpose, if 
        the Secretary finds that such further restriction will not 
        impede such research or public health activities.
        (4) Effective date.--Paragraph (1) shall apply to exchanges 
    occurring on or after the date that is 6 months after the date of 
    the promulgation of final regulations implementing this subsection.
    (e) Access to Certain Information in Electronic Format.--In 
applying section 164.524 of title 45, Code of Federal Regulations, in 
the case that a covered entity uses or maintains an electronic health 
record with respect to protected health information of an individual--
        (1) the individual shall have a right to obtain from such 
    covered entity a copy of such information in an electronic format 
    and, if the individual chooses, to direct the covered entity to 
    transmit such copy directly to an entity or person designated by 
    the individual, provided that any such choice is clear, 
    conspicuous, and specific; and
        (2) notwithstanding paragraph (c)(4) of such section, any fee 
    that the covered entity may impose for providing such individual 
    with a copy of such information (or a summary or explanation of 
    such information) if such copy (or summary or explanation) is in an 
    electronic form shall not be greater than the entity's labor costs 
    in responding to the request for the copy (or summary or 
    explanation).

SEC. 13406. CONDITIONS ON CERTAIN CONTACTS AS PART OF HEALTH CARE 
              OPERATIONS.

    (a) Marketing.--
        (1) In general.--A communication by a covered entity or 
    business associate that is about a product or service and that 
    encourages recipients of the communication to purchase or use the 
    product or service shall not be considered a health care operation 
    for purposes of subpart E of part 164 of title 45, Code of Federal 
    Regulations, unless the communication is made as described in 
    subparagraph (i), (ii), or (iii) of paragraph (1) of the definition 
    of marketing in section 164.501 of such title.
        (2) Payment for certain communications.--A communication by a 
    covered entity or business associate that is described in 
    subparagraph (i), (ii), or (iii) of paragraph (1) of the definition 
    of marketing in section 164.501 of title 45, Code of Federal 
    Regulations, shall not be considered a health care operation for 
    purposes of subpart E of part 164 of title 45, Code of Federal 
    Regulations if the covered entity receives or has received direct 
    or indirect payment in exchange for making such communication, 
    except where--
            (A)(i) such communication describes only a drug or biologic 
        that is currently being prescribed for the recipient of the 
        communication; and
            (ii) any payment received by such covered entity in 
        exchange for making a communication described in clause (i) is 
        reasonable in amount;
            (B) each of the following conditions apply--
                (i) the communication is made by the covered entity; 
            and
                (ii) the covered entity making such communication 
            obtains from the recipient of the communication, in 
            accordance with section 164.508 of title 45, Code of 
            Federal Regulations, a valid authorization (as described in 
            paragraph (b) of such section) with respect to such 
            communication; or
            (C) each of the following conditions apply--
                (i) the communication is made by a business associate 
            on behalf of the covered entity; and
                (ii) the communication is consistent with the written 
            contract (or other written arrangement described in section 
            164.502(e)(2) of such title) between such business 
            associate and covered entity.
        (3) Reasonable in amount defined.--For purposes of paragraph 
    (2), the term ``reasonable in amount'' shall have the meaning given 
    such term by the Secretary by regulation.
        (4) Direct or indirect payment.--For purposes of paragraph (2), 
    the term ``direct or indirect payment'' shall not include any 
    payment for treatment (as defined in section 164.501 of title 45, 
    Code of Federal Regulations) of an individual.
    (b) Opportunity to Opt Out of Fundraising.--The Secretary shall by 
rule provide that any written fundraising communication that is a 
healthcare operation as defined under section 164.501 of title 45, Code 
of Federal Regulations, shall, in a clear and conspicuous manner, 
provide an opportunity for the recipient of the communications to elect 
not to receive any further such communication. When an individual 
elects not to receive any further such communication, such election 
shall be treated as a revocation of authorization under section 164.508 
of title 45, Code of Federal Regulations.
    (c) Effective Date.--This section shall apply to written 
communications occurring on or after the effective date specified under 
section 13423.

SEC. 13407. TEMPORARY BREACH NOTIFICATION REQUIREMENT FOR VENDORS OF 
              PERSONAL HEALTH RECORDS AND OTHER NON-HIPAA COVERED 
              ENTITIES.

    (a) In General.--In accordance with subsection (c), each vendor of 
personal health records, following the discovery of a breach of 
security of unsecured PHR identifiable health information that is in a 
personal health record maintained or offered by such vendor, and each 
entity described in clause (ii), (iii), or (iv) of section 
13424(b)(1)(A), following the discovery of a breach of security of such 
information that is obtained through a product or service provided by 
such entity, shall--
        (1) notify each individual who is a citizen or resident of the 
    United States whose unsecured PHR identifiable health information 
    was acquired by an unauthorized person as a result of such a breach 
    of security; and
        (2) notify the Federal Trade Commission.
    (b) Notification by Third Party Service Providers.--A third party 
service provider that provides services to a vendor of personal health 
records or to an entity described in clause (ii), (iii). or (iv) of 
section 13424(b)(1)(A) in connection with the offering or maintenance 
of a personal health record or a related product or service and that 
accesses, maintains, retains, modifies, records, stores, destroys, or 
otherwise holds, uses, or discloses unsecured PHR identifiable health 
information in such a record as a result of such services shall, 
following the discovery of a breach of security of such information, 
notify such vendor or entity, respectively, of such breach. Such notice 
shall include the identification of each individual whose unsecured PHR 
identifiable health information has been, or is reasonably believed to 
have been, accessed, acquired, or disclosed during such breach.
    (c) Application of Requirements for Timeliness, Method, and Content 
of Notifications.--Subsections (c), (d), (e), and (f) of section 13402 
shall apply to a notification required under subsection (a) and a 
vendor of personal health records, an entity described in subsection 
(a) and a third party service provider described in subsection (b), 
with respect to a breach of security under subsection (a) of unsecured 
PHR identifiable health information in such records maintained or 
offered by such vendor, in a manner specified by the Federal Trade 
Commission.
    (d) Notification of the Secretary.--Upon receipt of a notification 
of a breach of security under subsection (a)(2), the Federal Trade 
Commission shall notify the Secretary of such breach.
    (e) Enforcement.--A violation of subsection (a) or (b) shall be 
treated as an unfair and deceptive act or practice in violation of a 
regulation under section 18(a)(1)(B) of the Federal Trade Commission 
Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or 
practices.
    (f) Definitions.--For purposes of this section:
        (1) Breach of security.--The term ``breach of security'' means, 
    with respect to unsecured PHR identifiable health information of an 
    individual in a personal health record, acquisition of such 
    information without the authorization of the individual.
        (2) PHR identifiable health information.--The term ``PHR 
    identifiable health information'' means individually identifiable 
    health information, as defined in section 1171(6) of the Social 
    Security Act (42 U.S.C. 1320d(6)), and includes, with respect to an 
    individual, information--
            (A) that is provided by or on behalf of the individual; and
            (B) that identifies the individual or with respect to which 
        there is a reasonable basis to believe that the information can 
        be used to identify the individual.
        (3) Unsecured phr identifiable health information.--
            (A) In general.--Subject to subparagraph (B), the term 
        ``unsecured PHR identifiable health information'' means PHR 
        identifiable health information that is not protected through 
        the use of a technology or methodology specified by the 
        Secretary in the guidance issued under section 13402(h)(2).
            (B) Exception in case timely guidance not issued.--In the 
        case that the Secretary does not issue guidance under section 
        13402(h)(2) by the date specified in such section, for purposes 
        of this section, the term ``unsecured PHR identifiable health 
        information'' shall mean PHR identifiable health information 
        that is not secured by a technology standard that renders 
        protected health information unusable, unreadable, or 
        indecipherable to unauthorized individuals and that is 
        developed or endorsed by a standards developing organization 
        that is accredited by the American National Standards 
        Institute.
    (g) Regulations; Effective Date; Sunset.--
        (1) Regulations; effective date.--To carry out this section, 
    the Federal Trade Commission shall promulgate interim final 
    regulations by not later than the date that is 180 days after the 
    date of the enactment of this section. The provisions of this 
    section shall apply to breaches of security that are discovered on 
    or after the date that is 30 days after the date of publication of 
    such interim final regulations.
        (2) Sunset.--If Congress enacts new legislation establishing 
    requirements for notification in the case of a breach of security, 
    that apply to entities that are not covered entities or business 
    associates, the provisions of this section shall not apply to 
    breaches of security discovered on or after the effective date of 
    regulations implementing such legislation.

SEC. 13408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CERTAIN ENTITIES.

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

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

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

SEC. 13410. IMPROVED ENFORCEMENT.

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

SEC. 13411. AUDITS.

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

 PART 2--RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; EFFECTIVE 
                             DATE; REPORTS

SEC. 13421. RELATIONSHIP TO OTHER LAWS.

    (a) Application of Hipaa State Preemption.--Section 1178 of the 
Social Security Act (42 U.S.C. 1320d-7) shall apply to a provision or 
requirement under this subtitle in the same manner that such section 
applies to a provision or requirement under part C of title XI of such 
Act or a standard or implementation specification adopted or 
established under sections 1172 through 1174 of such Act.
    (b) Health Insurance Portability and Accountability Act.--The 
standards governing the privacy and security of individually 
identifiable health information promulgated by the Secretary under 
sections 262(a) and 264 of the Health Insurance Portability and 
Accountability Act of 1996 shall remain in effect to the extent that 
they are consistent with this subtitle. The Secretary shall by rule 
amend such Federal regulations as required to make such regulations 
consistent with this subtitle.
    (c) Construction.--Nothing in this subtitle shall constitute a 
waiver of any privilege otherwise applicable to an individual with 
respect to the protected health information of such individual.

SEC. 13422. REGULATORY REFERENCES.

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

SEC. 13423. EFFECTIVE DATE.

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

SEC. 13424. STUDIES, REPORTS, GUIDANCE.

    (a) Report on Compliance.--
        (1) In general.--For the first year beginning after the date of 
    the enactment of this Act and annually thereafter, the Secretary 
    shall prepare and submit to the Committee on Health, Education, 
    Labor, and Pensions of the Senate and the Committee on Ways and 
    Means and the Committee on Energy and Commerce of the House of 
    Representatives a report concerning complaints of alleged 
    violations of law, including the provisions of this subtitle as 
    well as the provisions of subparts C and E of part 164 of title 45, 
    Code of Federal Regulations, (as such provisions are in effect as 
    of the date of enactment of this Act) relating to privacy and 
    security of health information that are received by the Secretary 
    during the year for which the report is being prepared. Each such 
    report shall include, with respect to such complaints received 
    during the year--
            (A) the number of such complaints;
            (B) the number of such complaints resolved informally, a 
        summary of the types of such complaints so resolved, and the 
        number of covered entities that received technical assistance 
        from the Secretary during such year in order to achieve 
        compliance with such provisions and the types of such technical 
        assistance provided;
            (C) the number of such complaints that have resulted in the 
        imposition of civil monetary penalties or have been resolved 
        through monetary settlements, including the nature of the 
        complaints involved and the amount paid in each penalty or 
        settlement;
            (D) the number of compliance reviews conducted and the 
        outcome of each such review;
            (E) the number of subpoenas or inquiries issued;
            (F) the Secretary's plan for improving compliance with and 
        enforcement of such provisions for the following year; and
            (G) the number of audits performed and a summary of audit 
        findings pursuant to section 13411.
        (2) Availability to public.--Each report under paragraph (1) 
    shall be made available to the public on the Internet website of 
    the Department of Health and Human Services.
    (b) Study and Report on Application of Privacy and Security 
Requirements to Non-Hipaa Covered Entities.--
        (1) Study.--Not later than one year after the date of the 
    enactment of this title, the Secretary, in consultation with the 
    Federal Trade Commission, shall conduct a study, and submit a 
    report under paragraph (2), on privacy and security requirements 
    for entities that are not covered entities or business associates 
    as of the date of the enactment of this title, including--
            (A) requirements relating to security, privacy, and 
        notification in the case of a breach of security or privacy 
        (including the applicability of an exemption to notification in 
        the case of individually identifiable health information that 
        has been rendered unusable, unreadable, or indecipherable 
        through technologies or methodologies recognized by appropriate 
        professional organization or standard setting bodies to provide 
        effective security for the information) that should be applied 
        to--
                (i) vendors of personal health records;
                (ii) entities that offer products or services through 
            the website of a vendor of personal health records;
                (iii) entities that are not covered entities and that 
            offer products or services through the websites of covered 
            entities that offer individuals personal health records;
                (iv) entities that are not covered entities and that 
            access information in a personal health record or send 
            information to a personal health record; and
                (v) third party service providers used by a vendor or 
            entity described in clause (i), (ii), (iii), or (iv) to 
            assist in providing personal health record products or 
            services;
            (B) a determination of which Federal government agency is 
        best equipped to enforce such requirements recommended to be 
        applied to such vendors, entities, and service providers under 
        subparagraph (A); and
            (C) a timeframe for implementing regulations based on such 
        findings.
        (2) Report.--The Secretary shall submit to the Committee on 
    Finance, the Committee on Health, Education, Labor, and Pensions, 
    and the Committee on Commerce of the Senate and the Committee on 
    Ways and Means and the Committee on Energy and Commerce of the 
    House of Representatives a report on the findings of the study 
    under paragraph (1) and shall include in such report 
    recommendations on the privacy and security requirements described 
    in such paragraph.
    (c) Guidance on Implementation Specification to De-Identify 
Protected Health Information.--Not later than 12 months after the date 
of the enactment of this title, the Secretary shall, in consultation 
with stakeholders, issue guidance on how best to implement the 
requirements for the de-identification of protected health information 
under section 164.514(b) of title 45, Code of Federal Regulations.
    (d) GAO Report on Treatment Disclosures.--Not later than one year 
after the date of the enactment of this title, the Comptroller General 
of the United States shall submit to the Committee on Health, 
Education, Labor, and Pensions of the Senate and the Committee on Ways 
and Means and the Committee on Energy and Commerce of the House of 
Representatives a report on the best practices related to the 
disclosure among health care providers of protected health information 
of an individual for purposes of treatment of such individual. Such 
report shall include an examination of the best practices implemented 
by States and by other entities, such as health information exchanges 
and regional health information organizations, an examination of the 
extent to which such best practices are successful with respect to the 
quality of the resulting health care provided to the individual and 
with respect to the ability of the health care provider to manage such 
best practices, and an examination of the use of electronic informed 
consent for disclosing protected health information for treatment, 
payment, and health care operations.
    (e) Report Required.--Not later than 5 years after the date of 
enactment of this section, the Government Accountability Office shall 
submit to Congress and the Secretary of Health and Human Services a 
report on the impact of any of the provisions of this Act on health 
insurance premiums, overall health care costs, adoption of electronic 
health records by providers, and reduction in medical errors and other 
quality improvements.
    (f) Study.--The Secretary shall study the definition of 
``psychotherapy notes'' in section 164.501 of title 45, Code of Federal 
Regulations, with regard to including test data that is related to 
direct responses, scores, items, forms, protocols, manuals, or other 
materials that are part of a mental health evaluation, as determined by 
the mental health professional providing treatment or evaluation in 
such definitions and may, based on such study, issue regulations to 
revise such definition.

               TITLE XIV--STATE FISCAL STABILIZATION FUND

                        DEPARTMENT OF EDUCATION

                    State Fiscal Stabilization Fund

    For necessary expenses for a State Fiscal Stabilization Fund, 
$53,600,000,000, which shall be administered by the Department of 
Education.

                     GENERAL PROVISIONS--THIS TITLE

SEC. 14001. ALLOCATIONS.

    (a) Outlying Areas.--From the amount appropriated to carry out this 
title, the Secretary of Education shall first allocate up to one-half 
of 1 percent to the outlying areas on the basis of their respective 
needs, as determined by the Secretary, in consultation with the 
Secretary of the Interior, for activities consistent with this title 
under such terms and conditions as the Secretary may determine.
    (b) Administration and Oversight.--The Secretary may, in addition, 
reserve up to $14,000,000 for administration and oversight of this 
title, including for program evaluation.
    (c) Reservation for Additional Programs.--After reserving funds 
under subsections (a) and (b), the Secretary shall reserve 
$5,000,000,000 for grants under sections 14006 and 14007.
    (d) State Allocations.--After carrying out subsections (a), (b), 
and (c), the Secretary shall allocate the remaining funds made 
available to carry out this title to the States as follows:
        (1) 61 percent on the basis of their relative population of 
    individuals aged 5 through 24.
        (2) 39 percent on the basis of their relative total population.
    (e) State Grants.--From funds allocated under subsection (d), the 
Secretary shall make grants to the Governor of each State.
    (f) Reallocation.--The Governor shall return to the Secretary any 
funds received under subsection (e) that the Governor does not award as 
subgrants or otherwise commit within two years of receiving such funds, 
and the Secretary shall reallocate such funds to the remaining States 
in accordance with subsection (d).

SEC. 14002. STATE USES OF FUNDS.

    (a) Education Fund.--
        (1) In general.--For each fiscal year, the Governor shall use 
    81.8 percent of the State's allocation under section 14001(d) for 
    the support of elementary, secondary, and postsecondary education 
    and, as applicable, early childhood education programs and 
    services.
        (2) Restoring state support for education.--
            (A) In general.--The Governor shall first use the funds 
        described in paragraph (1)--
                (i) to provide the amount of funds, through the State's 
            primary elementary and secondary funding formulae, that is 
            needed--

                    (I) to restore, in each of fiscal years 2009, 2010, 
                and 2011, the level of State support provided through 
                such formulae to the greater of the fiscal year 2008 or 
                fiscal year 2009 level; and
                    (II) where applicable, to allow existing State 
                formulae increases to support elementary and secondary 
                education for fiscal years 2010 and 2011 to be 
                implemented and allow funding for phasing in State 
                equity and adequacy adjustments, if such increases were 
                enacted pursuant to State law prior to October 1, 2008.

                (ii) to provide, in each of fiscal years 2009, 2010, 
            and 2011, the amount of funds to public institutions of 
            higher education in the State that is needed to restore 
            State support for such institutions (excluding tuition and 
            fees paid by students) to the greater of the fiscal year 
            2008 or fiscal year 2009 level.
            (B) Shortfall.--If the Governor determines that the amount 
        of funds available under paragraph (1) is insufficient to 
        support, in each of fiscal years 2009, 2010, and 2011, public 
        elementary, secondary, and higher education at the levels 
        described in clauses (i) and (ii) of subparagraph (A), the 
        Governor shall allocate those funds between those clauses in 
        proportion to the relative shortfall in State support for the 
        education sectors described in those clauses.
            (C) Fiscal year.--For purposes of this paragraph, the term 
        ``fiscal year'' shall have the meaning given such term under 
        State law.
        (3) Subgrants to improve basic programs operated by local 
    educational agencies.--After carrying out paragraph (2), the 
    Governor shall use any funds remaining under paragraph (1) to 
    provide local educational agencies in the State with subgrants 
    based on their relative shares of funding under part A of title I 
    of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
    6311 et seq.) for the most recent year for which data are 
    available.
    (b) Other Government Services.--
        (1) In general.--The Governor shall use 18.2 percent of the 
    State's allocation under section 14001 for public safety and other 
    government services, which may include assistance for elementary 
    and secondary education and public institutions of higher 
    education, and for modernization, renovation, or repair of public 
    school facilities and institutions of higher education facilities, 
    including modernization, renovation, and repairs that are 
    consistent with a recognized green building rating system.
        (2) Availability to all institutions of higher education.--A 
    Governor shall not consider the type or mission of an institution 
    of higher education, and shall consider any institution for funding 
    for modernization, renovation, and repairs within the State that--
            (A) qualifies as an institution of higher education, as 
        defined in subsection 14013(3); and
            (B) continues to be eligible to participate in the programs 
        under title IV of the Higher Education Act of 1965.
    (c) Rule of Construction.--Nothing in this section shall allow a 
local educational agency to engage in school modernization, renovation, 
or repair that is inconsistent with State law.

SEC. 14003. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES.

    (a) In General.--A local educational agency that receives funds 
under this title may use the funds for any activity authorized by the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) 
(``ESEA''), the Individuals with Disabilities Education Act (20 U.S.C. 
1400 et seq.) (``IDEA''), the Adult and Family Literacy Act (20 U.S.C. 
1400 et seq.), or the Carl D. Perkins Career and Technical Education 
Act of 2006 (20 U.S.C. 2301 et seq.) (``the Perkins Act'') or for 
modernization, renovation, or repair of public school facilities, 
including modernization, renovation, and repairs that are consistent 
with a recognized green building rating system.
    (b) Prohibition.--A local educational agency may not use funds 
received under this title for--
        (1) payment of maintenance costs;
        (2) stadiums or other facilities primarily used for athletic 
    contests or exhibitions or other events for which admission is 
    charged to the general public;
        (3) purchase or upgrade of vehicles; or
        (4) improvement of stand-alone facilities whose purpose is not 
    the education of children, including central office administration 
    or operations or logistical support facilities.
    (c) Rule of Construction.--Nothing in this section shall allow a 
local educational agency to engage in school modernization, renovation, 
or repair that is inconsistent with State law.

SEC. 14004. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.

    (a) In General.--A public institution of higher education that 
receives funds under this title shall use the funds for education and 
general expenditures, and in such a way as to mitigate the need to 
raise tuition and fees for in-State students, or for modernization, 
renovation, or repair of institution of higher education facilities 
that are primarily used for instruction, research, or student housing, 
including modernization, renovation, and repairs that are consistent 
with a recognized green building rating system.
    (b) Prohibition.--An institution of higher education may not use 
funds received under this title to increase its endowment.
    (c) Additional Prohibition.--No funds awarded under this title may 
be used for--
        (1) the maintenance of systems, equipment, or facilities;
        (2) modernization, renovation, or repair of stadiums or other 
    facilities primarily used for athletic contests or exhibitions or 
    other events for which admission is charged to the general public; 
    or
        (3) modernization, renovation, or repair of facilities--
            (A) used for sectarian instruction or religious worship; or
            (B) in which a substantial portion of the functions of the 
        facilities are subsumed in a religious mission.

SEC. 14005. STATE APPLICATIONS.

    (a) In General.--The Governor of a State desiring to receive an 
allocation under section 14001 shall submit an application at such 
time, in such manner, and containing such information as the Secretary 
may reasonably require.
    (b) Application.--In such application, the Governor shall--
        (1) include the assurances described in subsection (d);
        (2) provide baseline data that demonstrates the State's current 
    status in each of the areas described in such assurances; and
        (3) describe how the State intends to use its allocation, 
    including whether the State will use such allocation to meet 
    maintenance of effort requirements under the ESEA and IDEA and, in 
    such cases, what amount will be used to meet such requirements.
    (c) Incentive Grant Application.--The Governor of a State seeking a 
grant under section 14006 shall--
        (1) submit an application for consideration;
        (2) describe the status of the State's progress in each of the 
    areas described in subsection (d), and the strategies the State is 
    employing to help ensure that students in the subgroups described 
    in section 1111(b)(2)(C)(v)(II) of the ESEA (20 U.S.C. 
    6311(b)(2)(C)(v)(II)) who have not met the State's proficiency 
    targets continue making progress toward meeting the State's student 
    academic achievement standards;
        (3) describe the achievement and graduation rates (as described 
    in section 1111(b)(2)(C)(vi) of the ESEA (20 U.S.C. 
    6311(b)(2)(C)(vi)) and as clarified in section 200.19(b)(1) of 
    title 34, Code of Federal Regulations) of public elementary and 
    secondary school students in the State, and the strategies the 
    State is employing to help ensure that all subgroups of students 
    identified in section 1111(b)(2) of the ESEA (20 U.S.C. 6311(b)(2)) 
    in the State continue making progress toward meeting the State's 
    student academic achievement standards;
        (4) describe how the State would use its grant funding to 
    improve student academic achievement in the State, including how it 
    will allocate the funds to give priority to high-need local 
    educational agencies; and
        (5) include a plan for evaluating the State's progress in 
    closing achievement gaps.
    (d) Assurances.--An application under subsection (b) shall include 
the following assurances:
        (1) Maintenance of effort.--
            (A) Elementary and secondary education.--The State will, in 
        each of fiscal years 2009, 2010, and 2011, maintain State 
        support for elementary and secondary education at least at the 
        level of such support in fiscal year 2006.
            (B) Higher education.--The State will, in each of fiscal 
        years 2009, 2010, and 2011, maintain State support for public 
        institutions of higher education (not including support for 
        capital projects or for research and development or tuition and 
        fees paid by students) at least at the level of such support in 
        fiscal year 2006.
        (2) Achieving equity in teacher distribution.--The State will 
    take actions to improve teacher effectiveness and comply with 
    section 1111(b)(8)(C) of the ESEA (20 U.S.C. 6311(b)(8)(C)) in 
    order to address inequities in the distribution of highly qualified 
    teachers between high- and low-poverty schools, and to ensure that 
    low-income and minority children are not taught at higher rates 
    than other children by inexperienced, unqualified, or out-of-field 
    teachers.
        (3) Improving collection and use of data.--The State will 
    establish a longitudinal data system that includes the elements 
    described in section 6401(e)(2)(D) of the America COMPETES Act (20 
    U.S.C. 9871).
        (4) Standards and assessments.--The State--
            (A) will enhance the quality of the academic assessments it 
        administers pursuant to section 1111(b)(3) of the ESEA (20 
        U.S.C. 6311(b)(3)) through activities such as those described 
        in section 6112(a) of such Act (20 U.S.C. 7301a(a));
            (B) will comply with the requirements of paragraphs 
        (3)(C)(ix) and (6) of section 1111(b) of the ESEA (20 U.S.C. 
        6311(b)) and section 612(a)(16) of the IDEA (20 U.S.C. 
        1412(a)(16)) related to the inclusion of children with 
        disabilities and limited English proficient students in State 
        assessments, the development of valid and reliable assessments 
        for those students, and the provision of accommodations that 
        enable their participation in State assessments; and
            (C) will take steps to improve State academic content 
        standards and student academic achievement standards consistent 
        with section 6401(e)(1)(9)(A)(ii) of the America COMPETES Act.
        (5) Supporting struggling schools.--The State will ensure 
    compliance with the requirements of section 1116(a)(7)(C)(iv) and 
    section 1116(a)(8)(B) of the ESEA with respect to schools 
    identified under such sections.

SEC. 14006. STATE INCENTIVE GRANTS.

    (a) In General.--
        (1) Reservation.--From the total amount reserved under section 
    14001(c) that is not used for section 14007, the Secretary may 
    reserve up to 1 percent for technical assistance to States to 
    assist them in meeting the objectives of paragraphs (2), (3), (4), 
    and (5) of section 14005(d).
        (2) Remainder.--Of the remaining funds, the Secretary shall, in 
    fiscal year 2010, make grants to States that have made significant 
    progress in meeting the objectives of paragraphs (2), (3), (4), and 
    (5) of section 14005(d).
    (b) Basis for Grants.--The Secretary shall determine which States 
receive grants under this section, and the amount of those grants, on 
the basis of information provided in State applications under section 
14005 and such other criteria as the Secretary determines appropriate, 
which may include a State's need for assistance to help meet the 
objective of paragraphs (2), (3), (4), and (5) of section 14005(d).
    (c) Subgrants to Local Educational Agencies.--Each State receiving 
a grant under this section shall use at least 50 percent of the grant 
to provide local educational agencies in the State with subgrants based 
on their relative shares of funding under part A of title I of the ESEA 
(20 U.S.C. 6311 et seq.) for the most recent year.

SEC. 14007. INNOVATION FUND.

    (a) In General.--
        (1) Eligible entities.--For the purposes of this section, the 
    term ``eligible entity'' means--
            (A) a local educational agency; or
            (B) a partnership between a nonprofit organization and--
                (i) one or more local educational agencies; or
                (ii) a consortium of schools.
        (2) Program established.--From the total amount reserved under 
    section 14001(c), the Secretary may reserve up to $650,000,000 to 
    establish an Innovation Fund, which shall consist of academic 
    achievement awards that recognize eligible entities that meet the 
    requirements described in subsection (b).
        (3) Basis for awards.--The Secretary shall make awards to 
    eligible entities that have made significant gains in closing the 
    achievement gap as described in subsection (b)(1)--
            (A) to allow such eligible entities to expand their work 
        and serve as models for best practices;
            (B) to allow such eligible entities to work in partnership 
        with the private sector and the philanthropic community; and
            (C) to identify and document best practices that can be 
        shared, and taken to scale based on demonstrated success.
    (b) Eligibility.--To be eligible for such an award, an eligible 
entity shall--
        (1) have significantly closed the achievement gaps between 
    groups of students described in section 1111(b)(2) of the ESEA (20 
    U.S.C. 6311(b)(2));
        (2) have exceeded the State's annual measurable objectives 
    consistent with such section 1111(b)(2) for 2 or more consecutive 
    years or have demonstrated success in significantly increasing 
    student academic achievement for all groups of students described 
    in such section through another measure, such as measures described 
    in section 1111(c)(2) of the ESEA;
        (3) have made significant improvement in other areas, such as 
    graduation rates or increased recruitment and placement of high-
    quality teachers and school leaders, as demonstrated with 
    meaningful data; and
        (4) demonstrate that they have established partnerships with 
    the private sector, which may include philanthropic organizations, 
    and that the private sector will provide matching funds in order to 
    help bring results to scale.
    (c) Special Rule.--In the case of an eligible entity that includes 
a nonprofit organization, the eligible entity shall be considered to 
have met the eligibility requirements of paragraphs (1), (2), (3) of 
subsection (b) if such nonprofit organization has a record of meeting 
such requirements.

SEC. 14008. STATE REPORTS.

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

SEC. 14009. EVALUATION.

    The Comptroller General of the United States shall conduct 
evaluations of the programs under sections 14006 and 14007 which shall 
include, but not be limited to, the criteria used for the awards made, 
the States selected for awards, award amounts, how each State used the 
award received, and the impact of this funding on the progress made 
toward closing achievement gaps.

SEC. 14010. SECRETARY'S REPORT TO CONGRESS.

    The Secretary shall submit a report to the Committee on Education 
and Labor of the House of Representatives, the Committee on Health, 
Education, Labor, and Pensions of the Senate, and the Committees on 
Appropriations of the House of Representatives and of the Senate, not 
less than 6 months following the submission of State reports, that 
evaluates the information provided in the State reports under section 
14008 and the information required by section 14005(b)(3) including 
State-by-State information.

SEC. 14011. PROHIBITION ON PROVISION OF CERTAIN ASSISTANCE.

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

SEC. 14012. FISCAL RELIEF.

    (a) In General.--For the purpose of relieving fiscal burdens on 
States and local educational agencies that have experienced a 
precipitous decline in financial resources, the Secretary of Education 
may waive or modify any requirement of this title relating to 
maintaining fiscal effort.
    (b) Duration.--A waiver or modification under this section shall be 
for any of fiscal year 2009, fiscal year 2010, or fiscal year 2011, as 
determined by the Secretary.
    (c) Criteria.--The Secretary shall not grant a waiver or 
modification under this section unless the Secretary determines that 
the State or local educational agency receiving such waiver or 
modification will not provide for elementary and secondary education, 
for the fiscal year under consideration, a smaller percentage of the 
total revenues available to the State or local educational agency than 
the amount provided for such purpose in the preceding fiscal year.
    (d) Maintenance of Effort.--Upon prior approval from the Secretary, 
a State or local educational agency that receives funds under this 
title may treat any portion of such funds that is used for elementary, 
secondary, or postsecondary education as non-Federal funds for the 
purpose of any requirement to maintain fiscal effort under any other 
program, including part C of the Individuals with Disabilities 
Education Act (20 U.S.C. 1431 et seq.), administered by the Secretary.
    (e) Subsequent Level of Effort.--Notwithstanding (d), the level of 
effort required by a State or local educational agency for the 
following fiscal year shall not be reduced.

SEC. 14013. DEFINITIONS.

    Except as otherwise provided in this title, as used in this title--
        (1) the terms ``elementary education'' and ``secondary 
    education'' have the meaning given such terms under State law;
        (2) the term ``high-need local educational agency'' means a 
    local educational agency--
            (A) that serves not fewer than 10,000 children from 
        families with incomes below the poverty line; or
            (B) for which not less than 20 percent of the children 
        served by the agency are from families with incomes below the 
        poverty line;
        (3) the term ``institution of higher education'' has the 
    meaning given such term in section 101 of the Higher Education Act 
    of 1965 (20 U.S.C. 1001);
        (4) the term ``Secretary'' means the Secretary of Education;
        (5) the term ``State'' means each of the 50 States, the 
    District of Columbia, and the Commonwealth of Puerto Rico; and
        (6) any other term used that is defined in section 9101 of the 
    ESEA (20 U.S.C. 7801) shall have the meaning given the term in such 
    section.

               TITLE XV--ACCOUNTABILITY AND TRANSPARENCY

SEC. 1501. DEFINITIONS.

    In this title:
        (1) Agency.--The term ``agency'' has the meaning given under 
    section 551 of title 5, United States Code.
        (2) Board.--The term ``Board'' means the Recovery 
    Accountability and Transparency Board established in section 1521.
        (3) Chairperson.--The term ``Chairperson'' means the 
    Chairperson of the Board.
        (4) Covered funds.--The term ``covered funds'' means any funds 
    that are expended or obligated from appropriations made under this 
    Act.
        (5) Panel.--The term ``Panel'' means the Recovery Independent 
    Advisory Panel established in section 1541.

          Subtitle A--Transparency and Oversight Requirements

SEC. 1511. CERTIFICATIONS.

    With respect to covered funds made available to State or local 
governments for infrastructure investments, the Governor, mayor, or 
other chief executive, as appropriate, shall certify that the 
infrastructure investment has received the full review and vetting 
required by law and that the chief executive accepts responsibility 
that the infrastructure investment is an appropriate use of taxpayer 
dollars. Such certification shall include a description of the 
investment, the estimated total cost, and the amount of covered funds 
to be used, and shall be posted on a website and linked to the website 
established by section 1526. A State or local agency may not receive 
infrastructure investment funding from funds made available in this Act 
unless this certification is made and posted.

SEC. 1512. REPORTS ON USE OF FUNDS.

    (a) Short Title.--This section may be cited as the ``Jobs 
Accountability Act''.
    (b) Definitions.--In this section:
        (1) Recipient.--The term ``recipient''--
            (A) means any entity that receives recovery funds directly 
        from the Federal Government (including recovery funds received 
        through grant, loan, or contract) other than an individual; and
            (B) includes a State that receives recovery funds.
        (2) Recovery funds.--The term ``recovery funds'' means any 
    funds that are made available from appropriations made under this 
    Act.
    (c) Recipient Reports.--Not later than 10 days after the end of 
each calendar quarter, each recipient that received recovery funds from 
a Federal agency shall submit a report to that agency that contains--
        (1) the total amount of recovery funds received from that 
    agency;
        (2) the amount of recovery funds received that were expended or 
    obligated to projects or activities; and
        (3) a detailed list of all projects or activities for which 
    recovery funds were expended or obligated, including--
            (A) the name of the project or activity;
            (B) a description of the project or activity;
            (C) an evaluation of the completion status of the project 
        or activity;
            (D) an estimate of the number of jobs created and the 
        number of jobs retained by the project or activity; and
            (E) for infrastructure investments made by State and local 
        governments, the purpose, total cost, and rationale of the 
        agency for funding the infrastructure investment with funds 
        made available under this Act, and name of the person to 
        contact at the agency if there are concerns with the 
        infrastructure investment.
        (4) Detailed information on any subcontracts or subgrants 
    awarded by the recipient to include the data elements required to 
    comply with the Federal Funding Accountability and Transparency Act 
    of 2006 (Public Law 109-282), allowing aggregate reporting on 
    awards below $25,000 or to individuals, as prescribed by the 
    Director of the Office of Management and Budget.
    (d) Agency Reports.--Not later than 30 days after the end of each 
calendar quarter, each agency that made recovery funds available to any 
recipient shall make the information in reports submitted under 
subsection (c) publicly available by posting the information on a 
website.
    (e) Other Reports.--The Congressional Budget Office and the 
Government Accountability Office shall comment on the information 
described in subsection (c)(3)(D) for any reports submitted under 
subsection (c). Such comments shall be due within 45 days after such 
reports are submitted.
    (f) Compliance.--Within 180 days of enactment, as a condition of 
receipt of funds under this Act, Federal agencies shall require any 
recipient of such funds to provide the information required under 
subsection (c).
    (g) Guidance.--Federal agencies, in coordination with the Director 
of the Office of Management and Budget, shall provide for user-friendly 
means for recipients of covered funds to meet the requirements of this 
section.
    (h) Registration.--Funding recipients required to report 
information per subsection (c)(4) must register with the Central 
Contractor Registration database or complete other registration 
requirements as determined by the Director of the Office of Management 
and Budget.

SEC. 1513. REPORTS OF THE COUNCIL OF ECONOMIC ADVISERS.

    (a) In General.--In consultation with the Director of the Office of 
Management and Budget and the Secretary of the Treasury, the 
Chairperson of the Council of Economic Advisers shall submit quarterly 
reports to the Committees on Appropriations of the Senate and House of 
Representatives that detail the impact of programs funded through 
covered funds on employment, estimated economic growth, and other key 
economic indicators.
    (b) Submission of Reports.--
        (1) First report.--The first report submitted under subsection 
    (a) shall be submitted not later than 45 days after the end of the 
    first full quarter following the date of enactment of this Act.
        (2) Last report.--The last report required to be submitted 
    under subsection (a) shall apply to the quarter in which the Board 
    terminates under section 1530.

SEC. 1514. INSPECTOR GENERAL REVIEWS.

    (a) Reviews.--Any inspector general of a Federal department or 
executive agency shall review, as appropriate, any concerns raised by 
the public about specific investments using funds made available in 
this Act. Any findings of such reviews not related to an ongoing 
criminal proceeding shall be relayed immediately to the head of the 
department or agency concerned. In addition, the findings of such 
reviews, along with any audits conducted by any inspector general of 
funds made available in this Act, shall be posted on the inspector 
general's website and linked to the website established by section 
1526, except that portions of reports may be redacted to the extent the 
portions would disclose information that is protected from public 
disclosure under sections 552 and 552a of title 5, United States Code.

SEC. 1515. ACCESS OF OFFICES OF INSPECTOR GENERAL TO CERTAIN RECORDS 
              AND EMPLOYEES.

    (a) Access.--With respect to each contract or grant awarded using 
covered funds, any representative of an appropriate inspector general 
appointed under section 3 or 8G of the Inspector General Act of 1978 (5 
U.S.C. App.), is authorized--
        (1) to examine any records of the contractor or grantee, any of 
    its subcontractors or subgrantees, or any State or local agency 
    administering such contract, that pertain to, and involve 
    transactions relating to, the contract, subcontract, grant, or 
    subgrant; and
        (2) to interview any officer or employee of the contractor, 
    grantee, subgrantee, or agency regarding such transactions.
    (b) Relationship to Existing Authority.--Nothing in this section 
shall be interpreted to limit or restrict in any way any existing 
authority of an inspector general.

       Subtitle B--Recovery Accountability and Transparency Board

SEC. 1521. ESTABLISHMENT OF THE RECOVERY ACCOUNTABILITY AND 
              TRANSPARENCY BOARD.

    There is established the Recovery Accountability and Transparency 
Board to coordinate and conduct oversight of covered funds to prevent 
fraud, waste, and abuse.

SEC. 1522. COMPOSITION OF BOARD.

    (a) Chairperson.--
        (1) Designation or appointment.--The President shall--
            (A) designate the Deputy Director for Management of the 
        Office of Management and Budget to serve as Chairperson of the 
        Board;
            (B) designate another Federal officer who was appointed by 
        the President to a position that required the advice and 
        consent of the Senate, to serve as Chairperson of the Board; or
            (C) appoint an individual as the Chairperson of the Board, 
        by and with the advice and consent of the Senate.
        (2) Compensation.--
            (A) Designation of federal officer.--If the President 
        designates a Federal officer under paragraph (1)(A) or (B) to 
        serve as Chairperson, that Federal officer may not receive 
        additional compensation for services performed as Chairperson.
            (B) Appointment of non-federal officer.--If the President 
        appoints an individual as Chairperson under paragraph (1)(C), 
        that individual shall be compensated at the rate of basic pay 
        prescribed for level IV of the Executive Schedule under section 
        5315 of title 5, United States Code.
    (b) Members.--The members of the Board shall include--
        (1) the Inspectors General of the Departments of Agriculture, 
    Commerce, Education, Energy, Health and Human Services, Homeland 
    Security, Justice, Transportation, Treasury, and the Treasury 
    Inspector General for Tax Administration; and
        (2) any other Inspector General as designated by the President 
    from any agency that expends or obligates covered funds.

SEC. 1523. FUNCTIONS OF THE BOARD.

    (a) Functions.--
        (1) In general.--The Board shall coordinate and conduct 
    oversight of covered funds in order to prevent fraud, waste, and 
    abuse.
        (2) Specific functions.--The functions of the Board shall 
    include--
            (A) reviewing whether the reporting of contracts and grants 
        using covered funds meets applicable standards and specifies 
        the purpose of the contract or grant and measures of 
        performance;
            (B) reviewing whether competition requirements applicable 
        to contracts and grants using covered funds have been 
        satisfied;
            (C) auditing or reviewing covered funds to determine 
        whether wasteful spending, poor contract or grant management, 
        or other abuses are occurring and referring matters it 
        considers appropriate for investigation to the inspector 
        general for the agency that disbursed the covered funds;
            (D) reviewing whether there are sufficient qualified 
        acquisition and grant personnel overseeing covered funds;
            (E) reviewing whether personnel whose duties involve 
        acquisitions or grants made with covered funds receive adequate 
        training; and
            (F) reviewing whether there are appropriate mechanisms for 
        interagency collaboration relating to covered funds, including 
        coordinating and collaborating to the extent practicable with 
        the Inspectors General Council on Integrity and Efficiency 
        established by the Inspector General Reform Act of 2008 (Public 
        Law 110-409).
    (b) Reports.--
        (1) Flash and other reports.--The Board shall submit to the 
    President and Congress, including the Committees on Appropriations 
    of the Senate and House of Representatives, reports, to be known as 
    ``flash reports'', on potential management and funding problems 
    that require immediate attention. The Board also shall submit to 
    Congress such other reports as the Board considers appropriate on 
    the use and benefits of funds made available in this Act.
        (2) Quarterly reports.--The Board shall submit quarterly 
    reports to the President and Congress, including the Committees on 
    Appropriations of the Senate and House of Representatives, 
    summarizing the findings of the Board and the findings of 
    inspectors general of agencies. The Board may submit additional 
    reports as appropriate.
        (3) Annual reports.--The Board shall submit annual reports to 
    the President and Congress, including the Committees on 
    Appropriations of the Senate and House of Representatives, 
    consolidating applicable quarterly reports on the use of covered 
    funds.
        (4) Public availability.--
            (A) In general.--All reports submitted under this 
        subsection shall be made publicly available and posted on the 
        website established by section 1526.
            (B) Redactions.--Any portion of a report submitted under 
        this subsection may be redacted when made publicly available, 
        if that portion would disclose information that is not subject 
        to disclosure under sections 552 and 552a of title 5, United 
        States Code.
    (c) Recommendations.--
        (1) In general.--The Board shall make recommendations to 
    agencies on measures to prevent fraud, waste, and abuse relating to 
    covered funds.
        (2) Responsive reports.--Not later than 30 days after receipt 
    of a recommendation under paragraph (1), an agency shall submit a 
    report to the President, the congressional committees of 
    jurisdiction, including the Committees on Appropriations of the 
    Senate and House of Representatives, and the Board on--
            (A) whether the agency agrees or disagrees with the 
        recommendations; and
            (B) any actions the agency will take to implement the 
        recommendations.

SEC. 1524. POWERS OF THE BOARD.

    (a) In General.--The Board shall conduct audits and reviews of 
spending of covered funds and coordinate on such activities with the 
inspectors general of the relevant agency to avoid duplication and 
overlap of work.
    (b) Audits and Reviews.--The Board may--
        (1) conduct its own independent audits and reviews relating to 
    covered funds; and
        (2) collaborate on audits and reviews relating to covered funds 
    with any inspector general of an agency.
    (c) Authorities.--
        (1) Audits and reviews.--In conducting audits and reviews, the 
    Board shall have the authorities provided under section 6 of the 
    Inspector General Act of 1978 (5 U.S.C. App.). Additionally, the 
    Board may issue subpoenas to compel the testimony of persons who 
    are not Federal officers or employees and may enforce such 
    subpoenas in the same manner as provided for inspector general 
    subpoenas under section 6 of the Inspector General Act of 1978 (5 
    U.S.C. App.).
        (2) Standards and guidelines.--The Board shall carry out the 
    powers under subsections (a) and (b) in accordance with section 
    4(b)(1) of the Inspector General Act of 1978 (5 U.S.C. App.).
    (d) Public Hearings.--The Board may hold public hearings and Board 
personnel may conduct necessary inquiries. The head of each agency 
shall make all officers and employees of that agency available to 
provide testimony to the Board and Board personnel. The Board may issue 
subpoenas to compel the testimony of persons who are not Federal 
officers or employees at such public hearings. Any such subpoenas may 
be enforced in the same manner as provided for inspector general 
subpoenas under section 6 of the Inspector General Act of 1978 (5 
U.S.C. App.).
    (e) Contracts.--The Board may enter into contracts to enable the 
Board to discharge its duties under this subtitle, including contracts 
and other arrangements for audits, studies, analyses, and other 
services with public agencies and with private persons, and make such 
payments as may be necessary to carry out the duties of the Board.
    (f) Transfer of Funds.--The Board may transfer funds appropriated 
to the Board for expenses to support administrative support services 
and audits, reviews, or other activities related to oversight by the 
Board of covered funds to any office of inspector general, the Office 
of Management and Budget, the General Services Administration, and the 
Panel.

SEC. 1525. EMPLOYMENT, PERSONNEL, AND RELATED AUTHORITIES.

    (a) Employment and Personnel Authorities.--
        (1) In general.--
            (A) Authorities.--Subject to paragraph (2), the Board may 
        exercise the authorities of subsections (b) through (i) of 
        section 3161 of title 5, United States Code (without regard to 
        subsection (a) of that section).
            (B) Application.--For purposes of exercising the 
        authorities described under subparagraph (A), the term 
        ``Chairperson of the Board'' shall be substituted for the term 
        ``head of a temporary organization''.
            (C) Consultation.--In exercising the authorities described 
        under subparagraph (A), the Chairperson shall consult with 
        members of the Board.
        (2) Employment authorities.--In exercising the employment 
    authorities under subsection (b) of section 3161 of title 5, United 
    States Code, as provided under paragraph (1) of this subsection--
            (A) paragraph (2) of subsection (b) of section 3161 of that 
        title (relating to periods of appointments) shall not apply; 
        and
            (B) no period of appointment may exceed the date on which 
        the Board terminates under section 1530.
    (b) Information and Assistance.--
        (1) In general.--Upon request of the Board for information or 
    assistance from any agency or other entity of the Federal 
    Government, the head of such entity shall, insofar as is 
    practicable and not in contravention of any existing law, furnish 
    such information or assistance to the Board, or an authorized 
    designee.
        (2) Report of refusals.--Whenever information or assistance 
    requested by the Board is, in the judgment of the Board, 
    unreasonably refused or not provided, the Board shall report the 
    circumstances to the congressional committees of jurisdiction, 
    including the Committees on Appropriations of the Senate and House 
    of Representatives, without delay.
    (c) Administrative Support.--The General Services Administration 
shall provide the Board with administrative support services, including 
the provision of office space and facilities.

SEC. 1526. BOARD WEBSITE.

    (a) Establishment.--The Board shall establish and maintain, no 
later than 30 days after enactment of this Act, a user-friendly, 
public-facing website to foster greater accountability and transparency 
in the use of covered funds.
    (b) Purpose.--The website established and maintained under 
subsection (a) shall be a portal or gateway to key information relating 
to this Act and provide connections to other Government websites with 
related information.
    (c) Content and Function.--In establishing the website established 
and maintained under subsection (a), the Board shall ensure the 
following:
        (1) The website shall provide materials explaining what this 
    Act means for citizens. The materials shall be easy to understand 
    and regularly updated.
        (2) The website shall provide accountability information, 
    including findings from audits, inspectors general, and the 
    Government Accountability Office.
        (3) The website shall provide data on relevant economic, 
    financial, grant, and contract information in user-friendly visual 
    presentations to enhance public awareness of the use of covered 
    funds.
        (4) The website shall provide detailed data on contracts 
    awarded by the Federal Government that expend covered funds, 
    including information about the competitiveness of the contracting 
    process, information about the process that was used for the award 
    of contracts, and for contracts over $500,000 a summary of the 
    contract.
        (5) The website shall include printable reports on covered 
    funds obligated by month to each State and congressional district.
        (6) The website shall provide a means for the public to give 
    feedback on the performance of contracts that expend covered funds.
        (7) The website shall include detailed information on Federal 
    Government contracts and grants that expend covered funds, to 
    include the data elements required to comply with the Federal 
    Funding Accountability and Transparency Act of 2006 (Public Law 
    109-282), allowing aggregate reporting on awards below $25,000 or 
    to individuals, as prescribed by the Director of the Office of 
    Management and Budget.
        (8) The website shall provide a link to estimates of the jobs 
    sustained or created by the Act.
        (9) The website shall provide a link to information about 
    announcements of grant competitions and solicitations for contracts 
    to be awarded.
        (10) The website shall include appropriate links to other 
    government websites with information concerning covered funds, 
    including Federal agency and State websites.
        (11) The website shall include a plan from each Federal agency 
    for using funds made available in this Act to the agency.
        (12) The website shall provide information on Federal 
    allocations of formula grants and awards of competitive grants 
    using covered funds.
        (13) The website shall provide information on Federal 
    allocations of mandatory and other entitlement programs by State, 
    county, or other appropriate geographical unit.
        (14) To the extent practical, the website shall provide, 
    organized by the location of the job opportunities involved, links 
    to and information about how to access job opportunities, 
    including, if possible, links to or information about local 
    employment agencies, job banks operated by State workforce 
    agencies, the Department of Labor's CareerOneStop website, State, 
    local and other public agencies receiving Federal funding, and 
    private firms contracted to perform work with Federal funding, in 
    order to direct job seekers to job opportunities created by this 
    Act.
        (15) The website shall be enhanced and updated as necessary to 
    carry out the purposes of this subtitle.
    (d) Waiver.--The Board may exclude posting contractual or other 
information on the website on a case-by-case basis when necessary to 
protect national security or to protect information that is not subject 
to disclosure under sections 552 and 552a of title 5, United States 
Code.

SEC. 1527. INDEPENDENCE OF INSPECTORS GENERAL.

    (a) Independent Authority.--Nothing in this subtitle shall affect 
the independent authority of an inspector general to determine whether 
to conduct an audit or investigation of covered funds.
    (b) Requests by Board.--If the Board requests that an inspector 
general conduct or refrain from conducting an audit or investigation 
and the inspector general rejects the request in whole or in part, the 
inspector general shall, not later than 30 days after rejecting the 
request, submit a report to the Board, the head of the applicable 
agency, and the congressional committees of jurisdiction, including the 
Committees on Appropriations of the Senate and House of 
Representatives. The report shall state the reasons that the inspector 
general has rejected the request in whole or in part. The inspector 
general's decision shall be final.

SEC. 1528. COORDINATION WITH THE COMPTROLLER GENERAL AND STATE 
              AUDITORS.

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

SEC. 1529. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as necessary to 
carry out this subtitle.

SEC. 1530. TERMINATION OF THE BOARD.

    The Board shall terminate on September 30, 2013.

            Subtitle C--Recovery Independent Advisory Panel

SEC. 1541. ESTABLISHMENT OF RECOVERY INDEPENDENT ADVISORY PANEL.

    (a) Establishment.--There is established the Recovery Independent 
Advisory Panel.
    (b) Membership.--The Panel shall be composed of 5 members who shall 
be appointed by the President.
    (c) Qualifications.--Members shall be appointed on the basis of 
expertise in economics, public finance, contracting, accounting, or any 
other relevant field.
    (d) Initial Meeting.--Not later than 30 days after the date on 
which all members of the Panel have been appointed, the Panel shall 
hold its first meeting.
    (e) Meetings.--The Panel shall meet at the call of the Chairperson 
of the Panel.
    (f) Quorum.--A majority of the members of the Panel shall 
constitute a quorum, but a lesser number of members may hold hearings.
    (g) Chairperson and Vice Chairperson.--The Panel shall select a 
Chairperson and Vice Chairperson from among its members.

SEC. 1542. DUTIES OF THE PANEL.

    The Panel shall make recommendations to the Board on actions the 
Board could take to prevent fraud, waste, and abuse relating to covered 
funds.

SEC. 1543. POWERS OF THE PANEL.

    (a) Hearings.--The Panel may hold such hearings, sit and act at 
such times and places, take such testimony, and receive such evidence 
as the Panel considers advisable to carry out this subtitle.
    (b) Information From Federal Agencies.--The Panel may secure 
directly from any agency such information as the Panel considers 
necessary to carry out this subtitle. Upon request of the Chairperson 
of the Panel, the head of such agency shall furnish such information to 
the Panel.
    (c) Postal Services.--The Panel may use the United States mails in 
the same manner and under the same conditions as agencies of the 
Federal Government.
    (d) Gifts.--The Panel may accept, use, and dispose of gifts or 
donations of services or property.

SEC. 1544. PANEL PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Panel who is not 
an officer or employee of the Federal Government shall be compensated 
at a rate equal to the daily equivalent of the annual rate of basic pay 
prescribed for level IV of the Executive Schedule under section 5315 of 
title 5, United States Code, for each day (including travel time) 
during which such member is engaged in the performance of the duties of 
the Panel. All members of the Panel who are officers or employees of 
the United States shall serve without compensation in addition to that 
received for their services as officers or employees of the United 
States.
    (b) Travel Expenses.--The members of the Panel shall be allowed 
travel expenses, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I of chapter 57 
of title 5, United States Code, while away from their homes or regular 
places of business in the performance of services for the Panel.
    (c) Staff.--
        (1) In general.--The Chairperson of the Panel may, without 
    regard to the civil service laws and regulations, appoint and 
    terminate an executive director and such other additional personnel 
    as may be necessary to enable the Panel to perform its duties. The 
    employment of an executive director shall be subject to 
    confirmation by the Panel.
        (2) Compensation.--The Chairperson of the Panel may fix the 
    compensation of the executive director and other personnel without 
    regard to chapter 51 and subchapter III of chapter 53 of title 5, 
    United States Code, relating to classification of positions and 
    General Schedule pay rates, except that the rate of pay for the 
    executive director and other personnel may not exceed the rate 
    payable for level V of the Executive Schedule under section 5316 of 
    such title.
        (3) Personnel as federal employees.--
            (A) In general.--The executive director and any personnel 
        of the Panel who are employees shall be employees under section 
        2105 of title 5, United States Code, for purposes of chapters 
        63, 81, 83, 84, 85, 87, 89, 89A, 89B, and 90 of that title.
            (B) Members of panel.--Subparagraph (A) shall not be 
        construed to apply to members of the Panel.
    (d) Detail of Government Employees.--Any Federal Government 
employee may be detailed to the Panel without reimbursement, and such 
detail shall be without interruption or loss of civil service status or 
privilege.
    (e) Procurement of Temporary and Intermittent Services.--The 
Chairperson of the Panel may procure temporary and intermittent 
services under section 3109(b) of title 5, United States Code, at rates 
for individuals which do not exceed the daily equivalent of the annual 
rate of basic pay prescribed for level V of the Executive Schedule 
under section 5316 of such title.
    (f) Administrative Support.--The General Services Administration 
shall provide the Panel with administrative support services, including 
the provision of office space and facilities.

SEC. 1545. TERMINATION OF THE PANEL.

    The Panel shall terminate on September 30, 2013.

SEC. 1546. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as necessary to 
carry out this subtitle.

  Subtitle D--Additional Accountability and Transparency Requirements

SEC. 1551. AUTHORITY TO ESTABLISH SEPARATE FUNDING ACCOUNTS.

    Although this Act provides supplemental appropriations for 
programs, projects, and activities in existing Treasury accounts, to 
facilitate tracking these funds through Treasury and agency accounting 
systems, the Secretary of the Treasury shall ensure that all funds 
appropriated in this Act shall be established in separate Treasury 
accounts, unless a waiver from this provision is approved by the 
Director of the Office of Management and Budget.

SEC. 1552. SET-ASIDE FOR STATE AND LOCAL GOVERNMENT REPORTING AND 
              RECORDKEEPING.

    Federal agencies receiving funds under this Act, may, after 
following the notice and comment rulemaking requirements under the 
Administrative Procedures Act (5 U.S.C. 500), reasonably adjust 
applicable limits on administrative expenditures for Federal awards to 
help award recipients defray the costs of data collection requirements 
initiated pursuant to this Act.

SEC. 1553. PROTECTING STATE AND LOCAL GOVERNMENT AND CONTRACTOR 
              WHISTLEBLOWERS.

    (a) Prohibition of Reprisals.--An employee of any non-Federal 
employer receiving covered funds may not be discharged, demoted, or 
otherwise discriminated against as a reprisal for disclosing, including 
a disclosure made in the ordinary course of an employee's duties, to 
the Board, an inspector general, the Comptroller General, a member of 
Congress, a State or Federal regulatory or law enforcement agency, a 
person with supervisory authority over the employee (or such other 
person working for the employer who has the authority to investigate, 
discover, or terminate misconduct), a court or grand jury, the head of 
a Federal agency, or their representatives, information that the 
employee reasonably believes is evidence of--
        (1) gross mismanagement of an agency contract or grant relating 
    to covered funds;
        (2) a gross waste of covered funds;
        (3) a substantial and specific danger to public health or 
    safety related to the implementation or use of covered funds;
        (4) an abuse of authority related to the implementation or use 
    of covered funds; or
        (5) a violation of law, rule, or regulation related to an 
    agency contract (including the competition for or negotiation of a 
    contract) or grant, awarded or issued relating to covered funds.
    (b) Investigation of Complaints.--
        (1) In general.--A person who believes that the person has been 
    subjected to a reprisal prohibited by subsection (a) may submit a 
    complaint regarding the reprisal to the appropriate inspector 
    general. Except as provided under paragraph (3), unless the 
    inspector general determines that the complaint is frivolous, does 
    not relate to covered funds, or another Federal or State judicial 
    or administrative proceeding has previously been invoked to resolve 
    such complaint, the inspector general shall investigate the 
    complaint and, upon completion of such investigation, submit a 
    report of the findings of the investigation to the person, the 
    person's employer, the head of the appropriate agency, and the 
    Board.
        (2) Time limitations for actions.--
            (A) In general.--Except as provided under subparagraph (B), 
        the inspector general shall, not later than 180 days after 
        receiving a complaint under paragraph (1)--
                (i) make a determination that the complaint is 
            frivolous, does not relate to covered funds, or another 
            Federal or State judicial or administrative proceeding has 
            previously been invoked to resolve such complaint; or
                (ii) submit a report under paragraph (1).
            (B) Extensions.--
                (i) Voluntary extension agreed to between inspector 
            general and complainant.--If the inspector general is 
            unable to complete an investigation under this section in 
            time to submit a report within the 180-day period specified 
            under subparagraph (A) and the person submitting the 
            complaint agrees to an extension of time, the inspector 
            general shall submit a report under paragraph (1) within 
            such additional period of time as shall be agreed upon 
            between the inspector general and the person submitting the 
            complaint.
                (ii) Extension granted by inspector general.--If the 
            inspector general is unable to complete an investigation 
            under this section in time to submit a report within the 
            180-day period specified under subparagraph (A), the 
            inspector general may extend the period for not more than 
            180 days without agreeing with the person submitting the 
            complaint to such extension, provided that the inspector 
            general provides a written explanation (subject to the 
            authority to exclude information under paragraph (4)(C)) 
            for the decision, which shall be provided to both the 
            person submitting the complaint and the non-Federal 
            employer.
                (iii) Semi-annual report on extensions.--The inspector 
            general shall include in semi-annual reports to Congress a 
            list of those investigations for which the inspector 
            general received an extension.
        (3) Discretion not to investigate complaints.--
            (A) In general.--The inspector general may decide not to 
        conduct or continue an investigation under this section upon 
        providing to the person submitting the complaint and the non-
        Federal employer a written explanation (subject to the 
        authority to exclude information under paragraph (4)(C)) for 
        such decision.
            (B) Assumption of rights to civil remedy.--Upon receipt of 
        an explanation of a decision not to conduct or continue an 
        investigation under subparagraph (A), the person submitting a 
        complaint shall immediately assume the right to a civil remedy 
        under subsection (c)(3) as if the 210-day period specified 
        under such subsection has already passed.
            (C) Semi-annual report.--The inspector general shall 
        include in semi-annual reports to Congress a list of those 
        investigations the inspector general decided not to conduct or 
        continue under this paragraph.
        (4) Access to investigative file of inspector general.--
            (A) In general.--The person alleging a reprisal under this 
        section shall have access to the investigation file of the 
        appropriate inspector general in accordance with section 552a 
        of title 5, United States Code (commonly referred to as the 
        ``Privacy Act''). The investigation of the inspector general 
        shall be deemed closed for purposes of disclosure under such 
        section when an employee files an appeal to an agency head or a 
        court of competent jurisdiction.
            (B) Civil action.--In the event the person alleging the 
        reprisal brings suit under subsection (c)(3), the person 
        alleging the reprisal and the non-Federal employer shall have 
        access to the investigative file of the inspector general in 
        accordance with the Privacy Act.
            (C) Exception.--The inspector general may exclude from 
        disclosure--
                (i) information protected from disclosure by a 
            provision of law; and
                (ii) any additional information the inspector general 
            determines disclosure of which would impede a continuing 
            investigation, provided that such information is disclosed 
            once such disclosure would no longer impede such 
            investigation, unless the inspector general determines that 
            disclosure of law enforcement techniques, procedures, or 
            information could reasonably be expected to risk 
            circumvention of the law or disclose the identity of a 
            confidential source.
        (5) Privacy of information.--An inspector general investigating 
    an alleged reprisal under this section may not respond to any 
    inquiry or disclose any information from or about any person 
    alleging such reprisal, except in accordance with the provisions of 
    section 552a of title 5, United States Code, or as required by any 
    other applicable Federal law.
    (c) Remedy and Enforcement Authority.--
        (1) Burden of proof.--
            (A) Disclosure as contributing factor in reprisal.--
                (i) In general.--A person alleging a reprisal under 
            this section shall be deemed to have affirmatively 
            established the occurrence of the reprisal if the person 
            demonstrates that a disclosure described in subsection (a) 
            was a contributing factor in the reprisal.
                (ii) Use of circumstantial evidence.--A disclosure may 
            be demonstrated as a contributing factor in a reprisal for 
            purposes of this paragraph by circumstantial evidence, 
            including--

                    (I) evidence that the official undertaking the 
                reprisal knew of the disclosure; or
                    (II) evidence that the reprisal occurred within a 
                period of time after the disclosure such that a 
                reasonable person could conclude that the disclosure 
                was a contributing factor in the reprisal.

            (B) Opportunity for rebuttal.--The head of an agency may 
        not find the occurrence of a reprisal with respect to a 
        reprisal that is affirmatively established under subparagraph 
        (A) if the non-Federal employer demonstrates by clear and 
        convincing evidence that the non-Federal employer would have 
        taken the action constituting the reprisal in the absence of 
        the disclosure.
        (2) Agency action.--Not later than 30 days after receiving an 
    inspector general report under subsection (b), the head of the 
    agency concerned shall determine whether there is sufficient basis 
    to conclude that the non-Federal employer has subjected the 
    complainant to a reprisal prohibited by subsection (a) and shall 
    either issue an order denying relief in whole or in part or shall 
    take 1 or more of the following actions:
            (A) Order the employer to take affirmative action to abate 
        the reprisal.
            (B) Order the employer to reinstate the person to the 
        position that the person held before the reprisal, together 
        with the compensation (including back pay), compensatory 
        damages, employment benefits, and other terms and conditions of 
        employment that would apply to the person in that position if 
        the reprisal had not been taken.
            (C) Order the employer to pay the complainant an amount 
        equal to the aggregate amount of all costs and expenses 
        (including attorneys' fees and expert witnesses' fees) that 
        were reasonably incurred by the complainant for, or in 
        connection with, bringing the complaint regarding the reprisal, 
        as determined by the head of the agency or a court of competent 
        jurisdiction.
        (3) Civil action.--If the head of an agency issues an order 
    denying relief in whole or in part under paragraph (1), has not 
    issued an order within 210 days after the submission of a complaint 
    under subsection (b), or in the case of an extension of time under 
    subsection (b)(2)(B)(i), within 30 days after the expiration of the 
    extension of time, or decides under subsection (b)(3) not to 
    investigate or to discontinue an investigation, and there is no 
    showing that such delay or decision is due to the bad faith of the 
    complainant, the complainant shall be deemed to have exhausted all 
    administrative remedies with respect to the complaint, and the 
    complainant may bring a de novo action at law or equity against the 
    employer to seek compensatory damages and other relief available 
    under this section in the appropriate district court of the United 
    States, which shall have jurisdiction over such an action without 
    regard to the amount in controversy. Such an action shall, at the 
    request of either party to the action, be tried by the court with a 
    jury.
        (4) Judicial enforcement of order.--Whenever a person fails to 
    comply with an order issued under paragraph (2), the head of the 
    agency shall file an action for enforcement of such order in the 
    United States district court for a district in which the reprisal 
    was found to have occurred. In any action brought under this 
    paragraph, the court may grant appropriate relief, including 
    injunctive relief, compensatory and exemplary damages, and 
    attorneys fees and costs.
        (5) Judicial review.--Any person adversely affected or 
    aggrieved by an order issued under paragraph (2) may obtain review 
    of the order's conformance with this subsection, and any 
    regulations issued to carry out this section, in the United States 
    court of appeals for a circuit in which the reprisal is alleged in 
    the order to have occurred. No petition seeking such review may be 
    filed more than 60 days after issuance of the order by the head of 
    the agency. Review shall conform to chapter 7 of title 5, United 
    States Code.
    (d) Nonenforceability of Certain Provisions Waiving Rights and 
Remedies or Requiring Arbitration of Disputes.--
        (1) Waiver of rights and remedies.--Except as provided under 
    paragraph (3), the rights and remedies provided for in this section 
    may not be waived by any agreement, policy, form, or condition of 
    employment, including by any predispute arbitration agreement.
        (2) Predispute arbitration agreements.--Except as provided 
    under paragraph (3), no predispute arbitration agreement shall be 
    valid or enforceable if it requires arbitration of a dispute 
    arising under this section.
        (3) Exception for collective bargaining agreements.--
    Notwithstanding paragraphs (1) and (2), an arbitration provision in 
    a collective bargaining agreement shall be enforceable as to 
    disputes arising under the collective bargaining agreement.
    (e) Requirement to Post Notice of Rights and Remedies.--Any 
employer receiving covered funds shall post notice of the rights and 
remedies provided under this section.
    (f) Rules of Construction.--
        (1) No implied authority to retaliate for non-protected 
    disclosures.--Nothing in this section may be construed to authorize 
    the discharge of, demotion of, or discrimination against an 
    employee for a disclosure other than a disclosure protected by 
    subsection (a) or to modify or derogate from a right or remedy 
    otherwise available to the employee.
        (2) Relationship to state laws.--Nothing in this section may be 
    construed to preempt, preclude, or limit the protections provided 
    for public or private employees under State whistleblower laws.
    (g) Definitions.--In this section:
        (1) Abuse of authority.--The term ``abuse of authority'' means 
    an arbitrary and capricious exercise of authority by a contracting 
    official or employee that adversely affects the rights of any 
    person, or that results in personal gain or advantage to the 
    official or employee or to preferred other persons.
        (2) Covered funds.--The term ``covered funds'' means any 
    contract, grant, or other payment received by any non-Federal 
    employer if--
            (A) the Federal Government provides any portion of the 
        money or property that is provided, requested, or demanded; and
            (B) at least some of the funds are appropriated or 
        otherwise made available by this Act.
        (3) Employee.--The term ``employee''--
            (A) except as provided under subparagraph (B), means an 
        individual performing services on behalf of an employer; and
            (B) does not include any Federal employee or member of the 
        uniformed services (as that term is defined in section 
        101(a)(5) of title 10, United States Code).
        (4) Non-federal employer.--The term ``non-Federal employer''--
            (A) means any employer--
                (i) with respect to covered funds--

                    (I) the contractor, subcontractor, grantee, or 
                recipient, as the case may be, if the contractor, 
                subcontractor, grantee, or recipient is an employer; 
                and
                    (II) any professional membership organization, 
                certification or other professional body, any agent or 
                licensee of the Federal government, or any person 
                acting directly or indirectly in the interest of an 
                employer receiving covered funds; or

                (ii) with respect to covered funds received by a State 
            or local government, the State or local government 
            receiving the funds and any contractor or subcontractor of 
            the State or local government; and
            (B) does not mean any department, agency, or other entity 
        of the Federal Government.
        (5) State or local government.--The term ``State or local 
    government'' means--
            (A) the government of each of the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, Guam, 
        American Samoa, the Virgin Islands, the Commonwealth of the 
        Northern Mariana Islands, or any other territory or possession 
        of the United States; or
            (B) the government of any political subdivision of a 
        government listed in subparagraph (A).

SEC. 1554. SPECIAL CONTRACTING PROVISIONS.

    To the maximum extent possible, contracts funded under this Act 
shall be awarded as fixed-price contracts through the use of 
competitive procedures. A summary of any contract awarded with such 
funds that is not fixed-price and not awarded using competitive 
procedures shall be posted in a special section of the website 
established in section 1526.

                TITLE XVI--GENERAL PROVISIONS--THIS ACT


                   RELATIONSHIP TO OTHER APPROPRIATIONS

    Sec. 1601.  Each amount appropriated or made available in this Act 
is in addition to amounts otherwise appropriated for the fiscal year 
involved. Enactment of this Act shall have no effect on the 
availability of amounts under the Continuing Appropriations Resolution, 
2009 (division A of Public Law 110-329).


                  PREFERENCE FOR QUICK-START ACTIVITIES

    Sec. 1602. In using funds made available in this Act for 
infrastructure investment, recipients shall give preference to 
activities that can be started and completed expeditiously, including a 
goal of using at least 50 percent of the funds for activities that can 
be initiated not later than 120 days after the date of the enactment of 
this Act. Recipients shall also use grant funds in a manner that 
maximizes job creation and economic benefit.


                          PERIOD OF AVAILABILITY

    Sec. 1603. All funds appropriated in this Act shall remain 
available for obligation until September 30, 2010, unless expressly 
provided otherwise in this Act.


                              LIMIT ON FUNDS

    Sec. 1604. None of the funds appropriated or otherwise made 
available in this Act may be used by any State or local government, or 
any private entity, for any casino or other gambling establishment, 
aquarium, zoo, golf course, or swimming pool.


                               BUY AMERICAN

    Sec. 1605.  Use of American Iron, Steel, and Manufactured Goods. 
(a) None of the funds appropriated or otherwise made available by this 
Act may be used for a project for the construction, alteration, 
maintenance, or repair of a public building or public work unless all 
of the iron, steel, and manufactured goods used in the project are 
produced in the United States.
    (b) Subsection (a) shall not apply in any case or category of cases 
in which the head of the Federal department or agency involved finds 
that--
        (1) applying subsection (a) would be inconsistent with the 
    public interest;
        (2) iron, steel, and the relevant manufactured goods are not 
    produced in the United States in sufficient and reasonably 
    available quantities and of a satisfactory quality; or
        (3) inclusion of iron, steel, and manufactured goods produced 
    in the United States will increase the cost of the overall project 
    by more than 25 percent.
    (c) If the head of a Federal department or agency determines that 
it is necessary to waive the application of subsection (a) based on a 
finding under subsection (b), the head of the department or agency 
shall publish in the Federal Register a detailed written justification 
as to why the provision is being waived.
    (d) This section shall be applied in a manner consistent with 
United States obligations under international agreements.


                          WAGE RATE REQUIREMENTS

    Sec. 1606. Notwithstanding any other provision of law and in a 
manner consistent with other provisions in this Act, all laborers and 
mechanics employed by contractors and subcontractors on projects funded 
directly by or assisted in whole or in part by and through the Federal 
Government pursuant to this Act shall be paid wages at rates not less 
than those prevailing on projects of a character similar in the 
locality as determined by the Secretary of Labor in accordance with 
subchapter IV of chapter 31 of title 40, United States Code. With 
respect to the labor standards specified in this section, the Secretary 
of Labor shall have the authority and functions set forth in 
Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) 
and section 3145 of title 40, United States Code.


   ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF APPROPRIATE USE OF 
                                 FUNDS

    Sec. 1607. (a) Certification by Governor.--Not later than 45 days 
after the date of enactment of this Act, for funds provided to any 
State or agency thereof, the Governor of the State shall certify that: 
(1) the State will request and use funds provided by this Act; and (2) 
the funds will be used to create jobs and promote economic growth.
    (b) Acceptance by State Legislature.--If funds provided to any 
State in any division of this Act are not accepted for use by the 
Governor, then acceptance by the State legislature, by means of the 
adoption of a concurrent resolution, shall be sufficient to provide 
funding to such State.
    (c) Distribution.--After the adoption of a State legislature's 
concurrent resolution, funding to the State will be for distribution to 
local governments, councils of government, public entities, and public-
private entities within the State either by formula or at the State's 
discretion.


                    economic stabilization contracting

    Sec. 1608. Reform of Contracting Procedures Under EESA. Section 
107(b) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 
5217(b)) is amended by inserting ``and individuals with disabilities 
and businesses owned by individuals with disabilities (for purposes of 
this subsection the term `individual with disability' has the same 
meaning as the term `handicapped individual' as that term is defined in 
section 3(f) of the Small Business Act (15 U.S.C. 632(f)),'' after 
``(12 U.S.C. 1441a(r)(4)),''.
    Sec. 1609. (a) Findings.--
        (1) The National Environmental Policy Act protects public 
    health, safety and environmental quality: by ensuring transparency, 
    accountability and public involvement in federal actions and in the 
    use of public funds;
        (2) When President Nixon signed the National Environmental 
    Policy Act into law on January 1, 1970, he said that the Act 
    provided the ``direction'' for the country to ``regain a productive 
    harmony between man and nature'';
        (3) The National Environmental Policy Act helps to provide an 
    orderly process for considering federal actions and funding 
    decisions and prevents ligation and delay that would otherwise be 
    inevitable and existed prior to the establishment of the National 
    Environmental Policy Act.
    (b) Adequate resources within this bill must be devoted to ensuring 
that applicable environmental reviews under the National Environmental 
Policy Act are completed on an expeditious basis and that the shortest 
existing applicable process under the National Environmental Policy Act 
shall be utilized.
    (c) The President shall report to the Senate Environment and Public 
Works Committee and the House Natural Resources Committee every 90 days 
following the date of enactment until September 30, 2011 on the status 
and progress of projects and activities funded by this Act with respect 
to compliance with National Environmental Policy Act requirements and 
documentation.
    Sec. 1610. (a) None of the funds appropriated or otherwise made 
available by this Act, for projects initiated after the effective date 
of this Act, may be used by an executive agency to enter into any 
Federal contract unless such contract is entered into in accordance 
with the Federal Property and Administrative Services Act (41 U.S.C. 
253) or chapter 137 of title 10, United States Code, and the Federal 
Acquisition Regulation, unless such contract is otherwise authorized by 
statute to be entered into without regard to the above referenced 
statutes.
    (b) All projects to be conducted under the authority of the Indian 
Self-Determination and Education Assistance Act, the Tribally-
Controlled Schools Act, the Sanitation and Facilities Act, the Native 
American Housing and Self-Determination Assistance Act and the Buy-
Indian Act shall be identified by the appropriate Secretary and the 
appropriate Secretary shall incorporate provisions to ensure that the 
agreement conforms with the provisions of this Act regarding the timing 
for use of funds and transparency, oversight, reporting, and 
accountability, including review by the Inspectors General, the 
Accountability and Transparency Board, and Government Accountability 
Office, consistent with the objectives of this Act.
    Sec. 1611. Hiring American Workers in Companies Receiving TARP 
Funding. (a) Short Title.--This section may be cited as the ``Employ 
American Workers Act''.
    (b) Prohibition.--
        (1) In general.--Notwithstanding any other provision of law, it 
    shall be unlawful for any recipient of funding under title I of the 
    Emergency Economic Stabilization Act of 2008 (Public Law 110-343) 
    or section 13 of the Federal Reserve Act (12 U.S.C. 342 et seq.) to 
    hire any nonimmigrant described in section 101(a)(15)(h)(i)(b) of 
    the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(h)(i)(b)) 
    unless the recipient is in compliance with the requirements for an 
    H-1B dependent employer (as defined in section 212(n)(3) of such 
    Act (8 U.S.C. 1182(n)(3))), except that the second sentence of 
    section 212(n)(1)(E)(ii) of such Act shall not apply.
        (2) Defined term.--In this subsection, the term ``hire'' means 
    to permit a new employee to commence a period of employment.
    (c) Sunset Provision.--This section shall be effective during the 
2-year period beginning on the date of the enactment of this Act.
    Sec. 1612. During the current fiscal year not to exceed 1 percent 
of any appropriation made available by this Act may be transferred by 
an agency head between such appropriations funded in this Act of that 
department or agency: Provided, That such appropriations shall be 
merged with and available for the same purposes, and for the same time 
period, as the appropriation to which transferred: Provided further, 
That the agency head shall notify the Committees on Appropriations of 
the Senate and House of Representatives of the transfer 15 days in 
advance: Provided further, That notice of any transfer made pursuant to 
this authority be posted on the website established by the Recovery Act 
Accountability and Transparency Board 15 days following such transfer: 
Provided further, That the authority contained in this section is in 
addition to transfer authorities otherwise available under current law: 
Provided further, That the authority provided in this section shall not 
apply to any appropriation that is subject to transfer provisions 
included elsewhere in this Act.

 DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER 
                               PROVISIONS
                        TITLE I--TAX PROVISIONS

SEC. 1000. SHORT TITLE, ETC.

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

                         TITLE I--TAX PROVISIONS

Sec. 1000. Short title, etc.

           Subtitle A--Tax Relief for Individuals and Families

                       PART I--General Tax Relief

Sec. 1001. Making work pay credit.
Sec. 1002. Temporary increase in earned income tax credit.
Sec. 1003. Temporary increase of refundable portion of child credit.
Sec. 1004. American opportunity tax credit.
Sec. 1005. Computer technology and equipment allowed as a qualified 
          higher education expense for section 529 accounts in 2009 and 
          2010.
Sec. 1006. Extension of and increase in first-time homebuyer credit; 
          waiver of requirement to repay.
Sec. 1007. Suspension of tax on portion of unemployment compensation.
Sec. 1008. Additional deduction for State sales tax and excise tax on 
          the purchase of certain motor vehicles.

                 PART II--Alternative Minimum Tax Relief

Sec. 1011. Extension of alternative minimum tax relief for nonrefundable 
          personal credits.
Sec. 1012. Extension of increased alternative minimum tax exemption 
          amount.

                      Subtitle B--Energy Incentives

                   PART I--Renewable Energy Incentives

Sec. 1101. Extension of credit for electricity produced from certain 
          renewable resources.
Sec. 1102. Election of investment credit in lieu of production credit.
Sec. 1103. Repeal of certain limitations on credit for renewable energy 
          property.
Sec. 1104. Coordination with renewable energy grants.

 PART II--Increased Allocations of New Clean Renewable Energy Bonds and 
                   Qualified Energy Conservation Bonds

Sec. 1111. Increased limitation on issuance of new clean renewable 
          energy bonds.
Sec. 1112. Increased limitation on issuance of qualified energy 
          conservation bonds.

                PART III--Energy Conservation Incentives

Sec. 1121. Extension and modification of credit for nonbusiness energy 
          property.
Sec. 1122. Modification of credit for residential energy efficient 
          property.
Sec. 1123. Temporary increase in credit for alternative fuel vehicle 
          refueling property.

    PART IV--Modification of Credit for Carbon Dioxide Sequestration

Sec. 1131. Application of monitoring requirements to carbon dioxide used 
          as a tertiary injectant.

              PART V--Plug-in Electric Drive Motor Vehicles

Sec. 1141. Credit for new qualified plug-in electric drive motor 
          vehicles.
Sec. 1142. Credit for certain plug-in electric vehicles.
Sec. 1143. Conversion kits.
Sec. 1144. Treatment of alternative motor vehicle credit as a personal 
          credit allowed against AMT.

           PART VI--Parity for Transportation Fringe Benefits

Sec. 1151. Increased exclusion amount for commuter transit benefits and 
          transit passes.

                 Subtitle C--Tax Incentives for Business

                 PART I--Temporary Investment Incentives

Sec. 1201. Special allowance for certain property acquired during 2009.
Sec. 1202. Temporary increase in limitations on expensing of certain 
          depreciable business assets.

                   PART II--Small Business Provisions

Sec. 1211. 5-year carryback of operating losses of small businesses.
Sec. 1212. Decreased required estimated tax payments in 2009 for certain 
          small businesses.

                    PART III--Incentives for New Jobs

Sec. 1221. Incentives to hire unemployed veterans and disconnected 
          youth.

               PART IV--Rules Relating to Debt Instruments

Sec. 1231. Deferral and ratable inclusion of income arising from 
          business indebtedness discharged by the reacquisition of a 
          debt instrument.
Sec. 1232. Modifications of rules for original issue discount on certain 
          high yield obligations.

                 PART V--Qualified Small Business Stock

Sec. 1241. Special rules applicable to qualified small business stock 
          for 2009 and 2010.

                         PART VI--S Corporations

Sec. 1251. Temporary reduction in recognition period for built-in gains 
          tax.

              PART VII--Rules Relating to Ownership Changes

Sec. 1261. Clarification of regulations related to limitations on 
          certain built-in losses following an ownership change.
Sec. 1262. Treatment of certain ownership changes for purposes of 
          limitations on net operating loss carryforwards and certain 
          built-in losses.

              Subtitle D--Manufacturing Recovery Provisions

Sec. 1301. Temporary expansion of availability of industrial development 
          bonds to facilities manufacturing intangible property.
Sec. 1302. Credit for investment in advanced energy facilities.

                   Subtitle E--Economic Recovery Tools

Sec. 1401. Recovery zone bonds.
Sec. 1402. Tribal economic development bonds.
Sec. 1403. Increase in new markets tax credit.
Sec. 1404. Coordination of low-income housing credit and low-income 
          housing grants.

               Subtitle F--Infrastructure Financing Tools

           PART I--Improved Marketability for Tax-Exempt Bonds

Sec. 1501. De minimis safe harbor exception for tax-exempt interest 
          expense of financial institutions.
Sec. 1502. Modification of small issuer exception to tax-exempt interest 
          expense allocation rules for financial institutions.
Sec. 1503. Temporary modification of alternative minimum tax limitations 
          on tax-exempt bonds.
Sec. 1504. Modification to high speed intercity rail facility bonds.

     PART II--Delay in Application of Withholding Tax on Government 
                               Contractors

Sec. 1511. Delay in application of withholding tax on government 
          contractors.

                 PART III--Tax Credit Bonds for Schools

Sec. 1521. Qualified school construction bonds.
Sec. 1522. Extension and expansion of qualified zone academy bonds.

                      PART IV--Build America Bonds

Sec. 1531. Build America bonds.

 PART V--Regulated Investment Companies Allowed to Pass-Thru Tax Credit 
                              Bond Credits

Sec. 1541. Regulated investment companies allowed to pass-thru tax 
          credit bond credits.

                      Subtitle G--Other Provisions

Sec. 1601. Application of certain labor standards to projects financed 
          with certain tax-favored bonds.
Sec. 1602. Grants to States for low-income housing projects in lieu of 
          low-income housing credit allocations for 2009.
Sec. 1603. Grants for specified energy property in lieu of tax credits.
Sec. 1604. Increase in public debt limit.

Subtitle H--Prohibition on Collection of Certain Payments Made Under the 
            Continued Dumping and Subsidy Offset Act of 2000

Sec. 1701. Prohibition on collection of certain payments made under the 
          Continued Dumping and Subsidy Offset Act of 2000.

                 Subtitle I--Trade Adjustment Assistance

Sec. 1800. Short title.

             PART I--Trade Adjustment Assistance for Workers

    subpart a--trade adjustment assistance for service sector workers

Sec. 1801. Extension of trade adjustment assistance to service sector 
          and public agency workers; shifts in production.
Sec. 1802. Separate basis for certification.
Sec. 1803. Determinations by Secretary of Labor.
Sec. 1804. Monitoring and reporting relating to service sector.

    subpart b--industry notifications following certain affirmative 
                             determinations

Sec. 1811. Notifications following certain affirmative determinations.
Sec. 1812. Notification to Secretary of Commerce.

                       subpart c--program benefits

Sec. 1821. Qualifying Requirements for Workers.
Sec. 1822. Weekly amounts.
Sec. 1823. Limitations on trade readjustment allowances; allowances for 
          extended training and breaks in training.
Sec. 1824. Special rules for calculation of eligibility period.
Sec. 1825. Application of State laws and regulations on good cause for 
          waiver of time limits or late filing of claims.
Sec. 1826. Employment and case management services.
Sec. 1827. Administrative expenses and employment and case management 
          services.
Sec. 1828. Training funding.
Sec. 1829. Prerequisite education; approved training programs.
Sec. 1830. Pre-layoff and part-time training.
Sec. 1831. On-the-job training.
Sec. 1832. Eligibility for unemployment insurance and program benefits 
          while in training.
Sec. 1833. Job search and relocation allowances.

       subpart d--reemployment trade adjustment assistance program

Sec. 1841. Reemployment trade adjustment assistance program.

                        subpart e--other matters

Sec. 1851. Office of Trade Adjustment Assistance.
Sec. 1852. Accountability of State agencies; collection and publication 
          of program data; agreements with States.
Sec. 1853. Verification of eligibility for program benefits.
Sec. 1854. Collection of data and reports; information to workers.
Sec. 1855. Fraud and recovery of overpayments.
Sec. 1856. Sense of Congress on application of trade adjustment 
          assistance.
Sec. 1857. Consultations in promulgation of regulations.
Sec. 1858. Technical corrections.

             PART II--Trade Adjustment Assistance for Firms

Sec. 1861. Expansion to service sector firms.
Sec. 1862. Modification of requirements for certification.
Sec. 1863. Basis for determinations.
Sec. 1864. Oversight and administration; authorization of 
          appropriations.
Sec. 1865. Increased penalties for false statements.
Sec. 1866. Annual report on trade adjustment assistance for firms.
Sec. 1867. Technical corrections.

          PART III--Trade Adjustment Assistance for Communities

Sec. 1871. Purpose.
Sec. 1872. Trade adjustment assistance for communities.
Sec. 1873. Conforming amendments.

            PART IV--Trade Adjustment Assistance for Farmers

Sec. 1881. Definitions.
Sec. 1882. Eligibility.
Sec. 1883. Benefits.
Sec. 1884. Report.
Sec. 1885. Fraud and recovery of overpayments.
Sec. 1886. Determination of increases of imports for certain fishermen.
Sec. 1887. Extension of trade adjustment assistance for farmers.

                       PART V--General Provisions

Sec. 1891. Effective date.
Sec. 1892. Extension of trade adjustment assistance programs.
Sec. 1893. Termination; related provisions.
Sec. 1894. Government Accountability Office report.
Sec. 1895. Emergency designation.

                  PART VI--Health Coverage Improvement

Sec. 1899. Short title.
Sec. 1899A. Improvement of the affordability of the credit.
Sec. 1899B. Payment for monthly premiums paid prior to commencement of 
          advance payments of credit.
Sec. 1899C. TAA recipients not enrolled in training programs eligible 
          for credit.
Sec. 1899D. TAA pre-certification period rule for purposes of 
          determining whether there is a 63-day lapse in creditable 
          coverage.
Sec. 1899E. Continued qualification of family members after certain 
          events.
Sec. 1899F. Extension of COBRA benefits for certain TAA-eligible 
          individuals and PBGC recipients.
Sec. 1899G. Addition of coverage through voluntary employees' 
          beneficiary associations.
Sec. 1899H. Notice requirements.
Sec. 1899I. Survey and report on enhanced health coverage tax credit 
          program.
Sec. 1899J. Authorization of appropriations.
Sec. 1899K. Extension of national emergency grants.
Sec. 1899L. GAO study and report.

          Subtitle A--Tax Relief for Individuals and Families

                       PART I--GENERAL TAX RELIEF

SEC. 1001. MAKING WORK PAY CREDIT.

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

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

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
subtitle for the taxable year an amount equal to the lesser of--
        ``(1) 6.2 percent of earned income of the taxpayer, or
        ``(2) $400 ($800 in the case of a joint return).
    ``(b) Limitation Based on Modified Adjusted Gross Income.--
        ``(1) In general.--The amount allowable as a credit under 
    subsection (a) (determined without regard to this paragraph and 
    subsection (c)) for the taxable year shall be reduced (but not 
    below zero) by 2 percent of so much of the taxpayer's modified 
    adjusted gross income as exceeds $75,000 ($150,000 in the case of a 
    joint return).
        ``(2) Modified adjusted gross income.--For purposes of 
    subparagraph (A), the term `modified adjusted gross income' means 
    the adjusted gross income of the taxpayer for the taxable year 
    increased by any amount excluded from gross income under section 
    911, 931, or 933.
    ``(c) Reduction for Certain Other Payments.--The credit allowed 
under subsection (a) for any taxable year shall be reduced by the 
amount of any payments received by the taxpayer during such taxable 
year under section 2201, and any credit allowed to the taxpayer under 
section 2202, of the American Recovery and Reinvestment Tax Act of 
2009.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
        ``(1) Eligible individual.--
            ``(A) In general.--The term `eligible individual' means any 
        individual other than--
                ``(i) any nonresident alien individual,
                ``(ii) any individual with respect to whom a deduction 
            under section 151 is allowable to another taxpayer for a 
            taxable year beginning in the calendar year in which the 
            individual's taxable year begins, and
                ``(iii) an estate or trust.
            ``(B) Identification number requirement.--Such term shall 
        not include any individual who does not include on the return 
        of tax for the taxable year--
                ``(i) such individual's social security account number, 
            and
                ``(ii) in the case of a joint return, the social 
            security account number of one of the taxpayers on such 
            return.
        For purposes of the preceding sentence, the social security 
        account number shall not include a TIN issued by the Internal 
        Revenue Service.
        ``(2) Earned income.--The term `earned income' has the meaning 
    given such term by section 32(c)(2), except that such term shall 
    not include net earnings from self-employment which are not taken 
    into account in computing taxable income. For purposes of the 
    preceding sentence, any amount excluded from gross income by reason 
    of section 112 shall be treated as earned income which is taken 
    into account in computing taxable income for the taxable year.
    ``(e) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2010.''.
    (b) Treatment of Possessions.--
        (1) Payments to possessions.--
            (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) Authority Relating to Clerical Errors.--Section 6213(g)(2) is 
amended by striking ``and'' at the end of subparagraph (L)(ii), by 
striking the period at the end of subparagraph (M) and inserting ``, 
and'', and by adding at the end the following new subparagraph:
            ``(N) an omission of the reduction required under section 
        36A(c) with respect to the credit allowed under section 36A or 
        an omission of the correct social security account number 
        required under section 36A(d)(1)(B).''.
    (e) Conforming Amendments.--
        (1) Section 6211(b)(4)(A) is amended by inserting ``36A,'' 
    after ``36,''.
        (2) Section 1324(b)(2) of title 31, United States Code, is 
    amended by inserting ``36A,'' after ``36,''.
        (3) The table of sections for subpart C of part IV of 
    subchapter A of chapter 1 is amended by inserting after the item 
    relating to section 36 the following new item:
``Sec. 36A. Making work pay credit.''.
    (f) Effective Date.--This section, and the amendments made by this 
section, shall apply to taxable years beginning after December 31, 
2008.

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

    (a) In General.--Subsection (b) of section 32 is amended by adding 
at the end the following new paragraph:
        ``(3) Special rules for 2009 and 2010.--In the case of any 
    taxable year beginning in 2009 or 2010--
            ``(A) Increased credit percentage for 3 or more qualifying 
        children.--In the case of a taxpayer with 3 or more qualifying 
        children, the credit percentage is 45 percent.
            ``(B) Reduction of marriage penalty.--
                ``(i) In general.--The dollar amount in effect under 
            paragraph (2)(B) shall be $5,000.
                ``(ii) Inflation adjustment.--In the case of any 
            taxable year beginning in 2010, the $5,000 amount in clause 
            (i) shall be increased by an amount equal to--

                    ``(I) such dollar amount, multiplied by
                    ``(II) the cost of living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins determined by substituting 
                `calendar year 2008' for `calendar year 1992' in 
                subparagraph (B) thereof.

                ``(iii) Rounding.--Subparagraph (A) of subsection 
            (j)(2) shall apply after taking into account any increase 
            under clause (ii).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT.

    (a) In General.--Paragraph (4) of section 24(d) is amended to read 
as follows:
        ``(4) Special rule for 2009 and 2010.--Notwithstanding 
    paragraph (3), in the case of any taxable year beginning in 2009 or 
    2010, the dollar amount in effect for such taxable year under 
    paragraph (1)(B)(i) shall be $3,000.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT.

    (a) In General.--Section 25A (relating to Hope scholarship credit) 
is amended by redesignating subsection (i) as subsection (j) and by 
inserting after subsection (h) the following new subsection:
    ``(i) American Opportunity Tax Credit.--In the case of any taxable 
year beginning in 2009 or 2010--
        ``(1) Increase in credit.--The Hope Scholarship Credit shall be 
    an amount equal to the sum of--
            ``(A) 100 percent of so much of the qualified tuition and 
        related expenses paid by the taxpayer during the taxable year 
        (for education furnished to the eligible student during any 
        academic period beginning in such taxable year) as does not 
        exceed $2,000, plus
            ``(B) 25 percent of such expenses so paid as exceeds $2,000 
        but does not exceed $4,000.
        ``(2) Credit allowed for first 4 years of post-secondary 
    education.--Subparagraphs (A) and (C) of subsection (b)(2) shall be 
    applied by substituting `4' for `2'.
        ``(3) Qualified tuition and related expenses to include 
    required course materials.--Subsection (f)(1)(A) shall be applied 
    by substituting `tuition, fees, and course materials' for `tuition 
    and fees'.
        ``(4) Increase in agi limits for hope scholarship credit.--In 
    lieu of applying subsection (d) with respect to the Hope 
    Scholarship Credit, such credit (determined without regard to this 
    paragraph) shall be reduced (but not below zero) by the amount 
    which bears the same ratio to such credit (as so determined) as--
            ``(A) the excess of--
                ``(i) the taxpayer's modified adjusted gross income (as 
            defined in subsection (d)(3)) for such taxable year, over
                ``(ii) $80,000 ($160,000 in the case of a joint 
            return), bears to
            ``(B) $10,000 ($20,000 in the case of a joint return).
        ``(5) Credit allowed against alternative minimum tax.--In the 
    case of a taxable year to which section 26(a)(2) does not apply, so 
    much of the credit allowed under subsection (a) as is attributable 
    to the Hope Scholarship Credit shall not exceed the excess of--
            ``(A) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(B) the sum of the credits allowable under this subpart 
        (other than this subsection and sections 23, 25D, and 30D) and 
        section 27 for the taxable year.
    Any reference in this section or section 24, 25, 26, 25B, 904, or 
    1400C to a credit allowable under this subsection shall be treated 
    as a reference to so much of the credit allowable under subsection 
    (a) as is attributable to the Hope Scholarship Credit.
        ``(6) Portion of credit made refundable.--40 percent of so much 
    of the credit allowed under subsection (a) as is attributable to 
    the Hope Scholarship Credit (determined after application of 
    paragraph (4) and without regard to this paragraph and section 
    26(a)(2) or paragraph (5), as the case may be) shall be treated as 
    a credit allowable under subpart C (and not allowed under 
    subsection (a)). The preceding sentence shall not apply to any 
    taxpayer for any taxable year if such taxpayer is a child to whom 
    subsection (g) of section 1 applies for such taxable year.
        ``(7) Coordination with midwestern disaster area benefits.--In 
    the case of a taxpayer with respect to whom section 702(a)(1)(B) of 
    the Heartland Disaster Tax Relief Act of 2008 applies for any 
    taxable year, such taxpayer may elect to waive the application of 
    this subsection to such taxpayer for such taxable year.''.
    (b) Conforming Amendments.--
        (1) Section 24(b)(3)(B) is amended by inserting ``25A(i),'' 
    after ``23,''.
        (2) Section 25(e)(1)(C)(ii) is amended by inserting ``25A(i),'' 
    after ``24,''.
        (3) Section 26(a)(1) is amended by inserting ``25A(i),'' after 
    ``24,''.
        (4) Section 25B(g)(2) is amended by inserting ``25A(i),'' after 
    ``23,''.
        (5) Section 904(i) is amended by inserting ``25A(i),'' after 
    ``24,''.
        (6) Section 1400C(d)(2) is amended by inserting ``25A(i),'' 
    after ``24,''.
        (7) Section 6211(b)(4)(A) is amended by inserting ``25A by 
    reason of subsection (i)(6) thereof,'' after ``24(d),''.
        (8) Section 1324(b)(2) of title 31, United States Code, is 
    amended by inserting ``25A,'' before ``35''.
    (c) Treatment of Possessions.--
        (1) Payments to possessions.--
            (A) Mirror code possession.--The Secretary of the Treasury 
        shall pay to each possession of the United States with a mirror 
        code tax system amounts equal to the loss to that possession by 
        reason of the application of section 25A(i)(6) of the Internal 
        Revenue Code of 1986 (as added by this section) with respect to 
        taxable years beginning in 2009 and 2010. Such amounts shall be 
        determined by the Secretary of the Treasury based on 
        information provided by the government of the respective 
        possession.
            (B) Other possessions.--The Secretary of the Treasury shall 
        pay to each possession of the United States which does not have 
        a mirror code tax system amounts estimated by the Secretary of 
        the Treasury as being equal to the aggregate benefits that 
        would have been provided to residents of such possession by 
        reason of the application of section 25A(i)(6) of such Code (as 
        so added) for taxable years beginning in 2009 and 2010 if a 
        mirror code tax system had been in effect in such possession. 
        The preceding sentence shall not apply with respect to any 
        possession of the United States unless such possession has a 
        plan, which has been approved by the Secretary of the Treasury, 
        under which such possession will promptly distribute such 
        payments to the residents of such possession.
        (2) Coordination with credit allowed against united states 
    income taxes.--Section 25A(i)(6) of such Code (as added by this 
    section) shall not apply to a bona fide resident of any possession 
    of the United States.
        (3) Definitions and special rules.--
            (A) Possession of the united states.--For purposes of this 
        subsection, the term ``possession of the United States'' 
        includes the Commonwealth of Puerto Rico and the Commonwealth 
        of the Northern Mariana Islands.
            (B) Mirror code tax system.--For purposes of this 
        subsection, the term ``mirror code tax system'' means, with 
        respect to any possession of the United States, the income tax 
        system of such possession if the income tax liability of the 
        residents of such possession under such system is determined by 
        reference to the income tax laws of the United States as if 
        such possession were the United States.
            (C) Treatment of payments.--For purposes of section 
        1324(b)(2) of title 31, United States Code, the payments under 
        this subsection shall be treated in the same manner as a refund 
        due from the credit allowed under section 25A of the Internal 
        Revenue Code of 1986 by reason of subsection (i)(6) of such 
        section (as added by this section).
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
    (e) Application of EGTRRA Sunset.--The amendment made by subsection 
(b)(1) shall be subject to title IX of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 in the same manner as the provision 
of such Act to which such amendment relates.
    (f) Treasury Studies Regarding Education Incentives.--
        (1) Study regarding coordination with non-tax student financial 
    assistance.--The Secretary of the Treasury and the Secretary of 
    Education, or their delegates, shall--
            (A) study how to coordinate the credit allowed under 
        section 25A of the Internal Revenue Code of 1986 with the 
        Federal Pell Grant program under section 401 of the Higher 
        Education Act of 1965 to maximize their effectiveness at 
        promoting college affordability, and
            (B) examine ways to expedite the delivery of the tax 
        credit.
        (2) Study regarding inclusion of community service 
    requirements.--The Secretary of the Treasury and the Secretary of 
    Education, or their delegates, shall study the feasibility of 
    requiring including community service as a condition of taking 
    their tuition and related expenses into account under section 25A 
    of the Internal Revenue Code of 1986.
        (3) Report.--Not later than 1 year after the date of the 
    enactment of this Act, the Secretary of the Treasury, or the 
    Secretary's delegate, shall report to Congress on the results of 
    the studies conducted under this paragraph.

SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A QUALIFIED 
              HIGHER EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS IN 2009 
              AND 2010.

    (a) In General.--Section 529(e)(3)(A) is amended by striking 
``and'' at the end of clause (i), by striking the period at the end of 
clause (ii), and by adding at the end the following:
                ``(iii) expenses paid or incurred in 2009 or 2010 for 
            the purchase of any computer technology or equipment (as 
            defined in section 170(e)(6)(F)(i)) or Internet access and 
            related services, if such technology, equipment, or 
            services are to be used by the beneficiary and the 
            beneficiary's family during any of the years the 
            beneficiary is enrolled at an eligible educational 
            institution.
        Clause (iii) shall not include expenses for computer software 
        designed for sports, games, or hobbies unless the software is 
        predominantly educational in nature.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to expenses paid or incurred after December 31, 2008.

SEC. 1006. EXTENSION OF AND INCREASE IN FIRST-TIME HOMEBUYER CREDIT; 
              WAIVER OF REQUIREMENT TO REPAY.

    (a) Extension.--
        (1) In general.--Section 36(h) is amended by striking ``July 1, 
    2009'' and inserting ``December 1, 2009''.
        (2) Conforming amendment.--Section 36(g) is amended by striking 
    ``July 1, 2009'' and inserting ``December 1, 2009''.
    (b) Increase.--
        (1) In general.--Section 36(b) is amended by striking 
    ``$7,500'' each place it appears and inserting ``$8,000''.
        (2) Conforming amendment.--Section 36(b)(1)(B) is amended by 
    striking ``$3,750'' and inserting ``$4,000''.
    (c) Waiver of Recapture.--
        (1) In general.--Paragraph (4) of section 36(f) is amended by 
    adding at the end the following new subparagraph:
            ``(D) Waiver of recapture for purchases in 2009.--In the 
        case of any credit allowed with respect to the purchase of a 
        principal residence after December 31, 2008, and before 
        December 1, 2009--
                ``(i) paragraph (1) shall not apply, and
                ``(ii) paragraph (2) shall apply only if the 
            disposition or cessation described in paragraph (2) with 
            respect to such residence occurs during the 36-month period 
            beginning on the date of the purchase of such residence by 
            the taxpayer.''.
        (2) Conforming amendment.--Subsection (g) of section 36 is 
    amended by striking ``subsection (c)'' and inserting ``subsections 
    (c) and (f)(4)(D)''.
    (d) Coordination With First-Time Homebuyer Credit for District of 
Columbia.--
        (1) In general.--Subsection (e) of section 1400C is amended by 
    adding at the end the following new paragraph:
        ``(4) Coordination with national first-time homebuyers 
    credit.--No credit shall be allowed under this section to any 
    taxpayer with respect to the purchase of a residence after December 
    31, 2008, and before December 1, 2009, if a credit under section 36 
    is allowable to such taxpayer (or the taxpayer's spouse) with 
    respect to such purchase.''.
        (2) Conforming amendment.--Section 36(d) is amended by striking 
    paragraph (1).
    (e) Removal of Prohibition on Financing by Mortgage Revenue 
Bonds.--Section 36(d), as amended by subsection (c)(2), is amended by 
striking paragraph (2) and by redesignating paragraphs (3) and (4) as 
paragraphs (1) and (2), respectively.
    (f) Effective Date.--The amendments made by this section shall 
apply to residences purchased after December 31, 2008.

SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION.

    (a) In General.--Section 85 of the Internal Revenue Code of 1986 
(relating to unemployment compensation) is amended by adding at the end 
the following new subsection:
    ``(c) Special Rule for 2009.--In the case of any taxable year 
beginning in 2009, gross income shall not include so much of the 
unemployment compensation received by an individual as does not exceed 
$2,400.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2008.

SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND EXCISE TAX ON 
              THE PURCHASE OF CERTAIN MOTOR VEHICLES.

    (a) In General.--Subsection (a) of section 164 is amended by 
inserting after paragraph (5) the following new paragraph:
        ``(6) Qualified motor vehicle taxes.''.
    (b) Qualified Motor Vehicle Taxes.--Subsection (b) of section 164 
is amended by adding at the end the following new paragraph:
        ``(6) Qualified motor vehicle taxes.--
            ``(A) In general.--For purposes of this section, the term 
        `qualified motor vehicle taxes' means any State or local sales 
        or excise tax imposed on the purchase of a qualified motor 
        vehicle.
            ``(B) Limitation based on vehicle price.--The amount of any 
        State or local sales or excise tax imposed on the purchase of a 
        qualified motor vehicle taken into account under subparagraph 
        (A) shall not exceed the portion of such tax attributable to so 
        much of the purchase price as does not exceed $49,500.
            ``(C) Income limitation.--The amount otherwise taken into 
        account under subparagraph (A) (after the application of 
        subparagraph (B)) for any taxable year shall be reduced (but 
        not below zero) by the amount which bears the same ratio to the 
        amount which is so treated as--
                ``(i) the excess (if any) of--

                    ``(I) the taxpayer's modified adjusted gross income 
                for such taxable year, over
                    ``(II) $125,000 ($250,000 in the case of a joint 
                return), bears to

                ``(ii) $10,000.
        For purposes of the preceding sentence, the term `modified 
        adjusted gross income' means the adjusted gross income of the 
        taxpayer for the taxable year (determined without regard to 
        sections 911, 931, and 933).
            ``(D) Qualified motor vehicle.--For purposes of this 
        paragraph--
                ``(i) In general.--The term `qualified motor vehicle' 
            means--

                    ``(I) a passenger automobile or light truck which 
                is treated as a motor vehicle for purposes of title II 
                of the Clean Air Act, the gross vehicle weight rating 
                of which is not more than 8,500 pounds, and the 
                original use of which commences with the taxpayer,
                    ``(II) a motorcycle the gross vehicle weight rating 
                of which is not more than 8,500 pounds and the original 
                use of which commences with the taxpayer, and
                    ``(III) a motor home the original use of which 
                commences with the taxpayer.

                ``(ii) Other terms.--The terms `motorcycle' and `motor 
            home' have the meanings given such terms under section 
            571.3 of title 49, Code of Federal Regulations (as in 
            effect on the date of the enactment of this paragraph).
            ``(E) Qualified motor vehicle taxes not included in cost of 
        acquired property.--The last sentence of subsection (a) shall 
        not apply to any qualified motor vehicle taxes.
            ``(F) Coordination with general sales tax.--This paragraph 
        shall not apply in the case of a taxpayer who makes an election 
        under paragraph (5) for the taxable year.
            ``(G) Termination.--This paragraph shall not apply to 
        purchases after December 31, 2009.''.
    (c) Deduction Allowed to Nonitemizers.--
        (1) In general.--Paragraph (1) of section 63(c) is amended by 
    striking ``and'' at the end of subparagraph (C), by striking the 
    period at the end of subparagraph (D) and inserting ``, and'', and 
    by adding at the end the following new subparagraph:
            ``(E) the motor vehicle sales tax deduction.''.
        (2) Definition.--Section 63(c) is amended by adding at the end 
    the following new paragraph:
        ``(9) Motor vehicle sales tax deduction.--For purposes of 
    paragraph (1), the term `motor vehicle sales tax deduction' means 
    the amount allowable as a deduction under section 164(a)(6). Such 
    term shall not include any amount taken into account under section 
    62(a).''.
    (d) Treatment of Deduction Under Alternative Minimum Tax.--The last 
sentence of section 56(b)(1)(E) is amended by striking ``section 
63(c)(1)(D)'' and inserting ``subparagraphs (D) and (E) of section 
63(c)(1)''.
    (e) Effective Date.--The amendments made by this section shall 
apply to purchases on or after the date of the enactment of this Act in 
taxable years ending after such date.

                PART II--ALTERNATIVE MINIMUM TAX RELIEF

SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR 
              NONREFUNDABLE PERSONAL CREDITS.

    (a) In General.--Paragraph (2) of section 26(a) (relating to 
special rule for taxable years 2000 through 2008) is amended--
        (1) by striking ``or 2008'' and inserting ``2008, or 2009'', 
    and
        (2) by striking ``2008'' in the heading thereof and inserting 
    ``2009''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION 
              AMOUNT.

    (a) In General.--Paragraph (1) of section 55(d) (relating to 
exemption amount) is amended--
        (1) by striking ``($69,950 in the case of taxable years 
    beginning in 2008)'' in subparagraph (A) and inserting ``($70,950 
    in the case of taxable years beginning in 2009)'', and
        (2) by striking ``($46,200 in the case of taxable years 
    beginning in 2008)'' in subparagraph (B) and inserting ``($46,700 
    in the case of taxable years beginning in 2009)''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

                     Subtitle B--Energy Incentives

                  PART I--RENEWABLE ENERGY INCENTIVES

SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN 
              RENEWABLE RESOURCES.

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

SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT.

    (a) In General.--Subsection (a) of section 48 is amended by adding 
at the end the following new paragraph:
        ``(5) Election to treat qualified facilities as energy 
    property.--
            ``(A) In general.--In the case of any qualified property 
        which is part of a qualified investment credit facility--
                ``(i) such property shall be treated as energy property 
            for purposes of this section, and
                ``(ii) the energy percentage with respect to such 
            property shall be 30 percent.
            ``(B) Denial of production credit.--No credit shall be 
        allowed under section 45 for any taxable year with respect to 
        any qualified investment credit facility.
            ``(C) Qualified investment credit facility.--For purposes 
        of this paragraph, the term `qualified investment credit 
        facility' means any of the following facilities if no credit 
        has been allowed under section 45 with respect to such facility 
        and the taxpayer makes an irrevocable election to have this 
        paragraph apply to such facility:
                ``(i) Wind facilities.--Any qualified facility (within 
            the meaning of section 45) described in paragraph (1) of 
            section 45(d) if such facility is placed in service in 
            2009, 2010, 2011, or 2012.
                ``(ii) Other facilities.--Any qualified facility 
            (within the meaning of section 45) described in paragraph 
            (2), (3), (4), (6), (7), (9), or (11) of section 45(d) if 
            such facility is placed in service in 2009, 2010, 2011, 
            2012, or 2013.
            ``(D) Qualified property.--For purposes of this paragraph, 
        the term `qualified property' means property--
                ``(i) which is--

                    ``(I) tangible personal property, or
                    ``(II) other tangible property (not including a 
                building or its structural components), but only if 
                such property is used as an integral part of the 
                qualified investment credit facility, and

                ``(ii) with respect to which depreciation (or 
            amortization in lieu of depreciation) is allowable.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to facilities placed in service after December 31, 2008.

SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY 
              PROPERTY.

    (a) Repeal of Limitation on Credit for Qualified Small Wind Energy 
Property.--Paragraph (4) of section 48(c) is amended by striking 
subparagraph (B) and by redesignating subparagraphs (C) and (D) as 
subparagraphs (B) and (C).
    (b) Repeal of Limitation on Property Financed by Subsidized Energy 
Financing.--
        (1) In general.--Section 48(a)(4) is amended by adding at the 
    end the following new subparagraph:
            ``(D) Termination.--This paragraph shall not apply to 
        periods after December 31, 2008, under rules similar to the 
        rules of section 48(m) (as in effect on the day before the date 
        of the enactment of the Revenue Reconciliation Act of 1990).''.
        (2) Conforming amendments.--
            (A) Section 25C(e)(1) is amended by striking ``(8), and 
        (9)'' and inserting ``and (8)''.
            (B) Section 25D(e) is amended by striking paragraph (9).
            (C) Section 48A(b)(2) is amended by inserting ``(without 
        regard to subparagraph (D) thereof)'' after ``section 
        48(a)(4)''.
            (D) Section 48B(b)(2) is amended by inserting ``(without 
        regard to subparagraph (D) thereof)'' after ``section 
        48(a)(4)''.
    (c) Effective Date.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendment made by this section shall apply to periods after 
    December 31, 2008, under rules similar to the rules of section 
    48(m) of the Internal Revenue Code of 1986 (as in effect on the day 
    before the date of the enactment of the Revenue Reconciliation Act 
    of 1990).
        (2) Conforming amendments.--The amendments made by 
    subparagraphs (A) and (B) of subsection (b)(2) shall apply to 
    taxable years beginning after December 31, 2008.

SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS.

    Section 48 is amended by adding at the end the following new 
subsection:
    ``(d) Coordination With Department of Treasury Grants.--In the case 
of any property with respect to which the Secretary makes a grant under 
section 1603 of the American Recovery and Reinvestment Tax Act of 
2009--
        ``(1) Denial of production and investment credits.--No credit 
    shall be determined under this section or section 45 with respect 
    to such property for the taxable year in which such grant is made 
    or any subsequent taxable year.
        ``(2) Recapture of credits for progress expenditures made 
    before grant.--If a credit was determined under this section with 
    respect to such property for any taxable year ending before such 
    grant is made--
            ``(A) the tax imposed under subtitle A on the taxpayer for 
        the taxable year in which such grant is made shall be increased 
        by so much of such credit as was allowed under section 38,
            ``(B) the general business carryforwards under section 39 
        shall be adjusted so as to recapture the portion of such credit 
        which was not so allowed, and
            ``(C) the amount of such grant shall be determined without 
        regard to any reduction in the basis of such property by reason 
        of such credit.
        ``(3) Treatment of grants.--Any such grant shall--
            ``(A) not be includible in the gross income of the 
        taxpayer, but
            ``(B) shall be taken into account in determining the basis 
        of the property to which such grant relates, except that the 
        basis of such property shall be reduced under section 50(c) in 
        the same manner as a credit allowed under subsection (a).''.

PART II--INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND 
                  QUALIFIED ENERGY CONSERVATION BONDS

SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN RENEWABLE 
              ENERGY BONDS.

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

SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED ENERGY 
              CONSERVATION BONDS.

    (a) In General.--Section 54D(d) is amended by striking 
``$800,000,000'' and inserting ``$3,200,000,000''.
    (b) Clarification With Respect to Green Community Programs.--
        (1) In general.--Clause (ii) of section 54D(f)(1)(A) is amended 
    by inserting ``(including the use of loans, grants, or other 
    repayment mechanisms to implement such programs)'' after ``green 
    community programs''.
        (2) Special rules for bonds for implementing green community 
    programs.--Subsection (e) of section 54D is amended by adding at 
    the end the following new paragraph:
        ``(4) Special rules for bonds to implement green community 
    programs.--In the case of any bond issued for the purpose of 
    providing loans, grants, or other repayment mechanisms for capital 
    expenditures to implement green community programs, such bond shall 
    not be treated as a private activity bond for purposes of paragraph 
    (3).''.

                PART III--ENERGY CONSERVATION INCENTIVES

SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY.

    (a) In General.--Section 25C is amended by striking subsections (a) 
and (b) and inserting the following new subsections:
    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 30 percent of the sum of--
        ``(1) the amount paid or incurred by the taxpayer during such 
    taxable year for qualified energy efficiency improvements, and
        ``(2) the amount of the residential energy property 
    expenditures paid or incurred by the taxpayer during such taxable 
    year.
    ``(b) Limitation.--The aggregate amount of the credits allowed 
under this section for taxable years beginning in 2009 and 2010 with 
respect to any taxpayer shall not exceed $1,500.''.
    (b) Modifications of Standards for Energy-Efficient Building 
Property.--
        (1) Electric heat pumps.--Subparagraph (B) of section 25C(d)(3) 
    is amended to read as follows:
            ``(B) an electric heat pump which achieves the highest 
        efficiency tier established by the Consortium for Energy 
        Efficiency, as in effect on January 1, 2009.''.
        (2) Central air conditioners.--Subparagraph (C) of section 
    25C(d)(3) is amended by striking ``2006'' and inserting ``2009''.
        (3) Water heaters.--Subparagraph (D) of section 25C(d)(3) is 
    amended to read as follows:
            ``(D) a natural gas, propane, or oil water heater which has 
        either an energy factor of at least 0.82 or a thermal 
        efficiency of at least 90 percent.''.
        (4) Wood stoves.--Subparagraph (E) of section 25C(d)(3) is 
    amended by inserting ``, as measured using a lower heating value'' 
    after ``75 percent''.
    (c) Modifications of Standards for Oil Furnaces and Hot Water 
Boilers.--
        (1) In general.--Paragraph (4) of section 25C(d) is amended to 
    read as follows:
        ``(4) Qualified natural gas, propane, and oil furnaces and hot 
    water boilers.--
            ``(A) Qualified natural gas furnace.--The term `qualified 
        natural gas furnace' means any natural gas furnace which 
        achieves an annual fuel utilization efficiency rate of not less 
        than 95.
            ``(B) Qualified natural gas hot water boiler.--The term 
        `qualified natural gas hot water boiler' means any natural gas 
        hot water boiler which achieves an annual fuel utilization 
        efficiency rate of not less than 90.
            ``(C) Qualified propane furnace.--The term `qualified 
        propane furnace' means any propane furnace which achieves an 
        annual fuel utilization efficiency rate of not less than 95.
            ``(D) Qualified propane hot water boiler.--The term 
        `qualified propane hot water boiler' means any propane hot 
        water boiler which achieves an annual fuel utilization 
        efficiency rate of not less than 90.
            ``(E) Qualified oil furnaces.--The term `qualified oil 
        furnace' means any oil furnace which achieves an annual fuel 
        utilization efficiency rate of not less than 90.
            ``(F) Qualified oil hot water boiler.--The term `qualified 
        oil hot water boiler' means any oil hot water boiler which 
        achieves an annual fuel utilization efficiency rate of not less 
        than 90.''.
        (2) Conforming amendment.--Clause (ii) of section 25C(d)(2)(A) 
    is amended to read as follows:
                ``(ii) any qualified natural gas furnace, qualified 
            propane furnace, qualified oil furnace, qualified natural 
            gas hot water boiler, qualified propane hot water boiler, 
            or qualified oil hot water boiler, or''.
    (d) Modifications of Standards for Qualified Energy Efficiency 
Improvements.--
        (1) Qualifications for exterior windows, doors, and 
    skylights.--Subsection (c) of section 25C is amended by adding at 
    the end the following new paragraph:
        ``(4) Qualifications for exterior windows, doors, and 
    skylights.--Such term shall not include any component described in 
    subparagraph (B) or (C) of paragraph (2) unless such component is 
    equal to or below a U factor of 0.30 and SHGC of 0.30.''.
        (2) Additional qualification for insulation.--Subparagraph (A) 
    of section 25C(c)(2) is amended by inserting ``and meets the 
    prescriptive criteria for such material or system established by 
    the 2009 International Energy Conservation Code, as such Code 
    (including supplements) is in effect on the date of the enactment 
    of the American Recovery and Reinvestment Tax Act of 2009'' after 
    ``such dwelling unit''.
    (e) Extension.--Section 25C(g)(2) is amended by striking ``December 
31, 2009'' and inserting ``December 31, 2010''.
    (f) Effective Dates.--
        (1) In general.--Except as provided in paragraph (2), the 
    amendments made by this section shall apply to taxable years 
    beginning after December 31, 2008.
        (2) Efficiency standards.--The amendments made by paragraphs 
    (1), (2), and (3) of subsection (b) and subsections (c) and (d) 
    shall apply to property placed in service after the date of the 
    enactment of this Act.

SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT 
              PROPERTY.

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

SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE 
              REFUELING PROPERTY.

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

    PART IV--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION

SEC. 1131. APPLICATION OF MONITORING REQUIREMENTS TO CARBON DIOXIDE 
              USED AS A TERTIARY INJECTANT.

    (a) In General.--Section 45Q(a)(2) is amended by striking ``and'' 
at the end of subparagraph (A), by striking the period at the end of 
subparagraph (B) and inserting ``, and'', and by adding at the end the 
following new subparagraph:
            ``(C) disposed of by the taxpayer in secure geological 
        storage.''.
    (b) Conforming Amendments.--
        (1) Section 45Q(d)(2) is amended--
            (A) by striking ``subsection (a)(1)(B)'' and inserting 
        ``paragraph (1)(B) or (2)(C) of subsection (a)'',
            (B) by striking ``and unminable coal seems'' and inserting 
        ``, oil and gas reservoirs, and unminable coal seams'', and
            (C) by inserting ``the Secretary of Energy, and the 
        Secretary of the Interior,'' after ``Environmental Protection 
        Agency''.
        (2) Section 45Q(a)(1)(B) is amended by inserting ``and not used 
    by the taxpayer as described in paragraph (2)(B)'' after 
    ``storage''.
        (3) Section 45Q(e) is amended by striking ``captured and 
    disposed of or used as a tertiary injectant'' and inserting ``taken 
    into account in accordance with subsection (a)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to carbon dioxide captured after the date of the enactment of 
this Act.

             PART V--PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

SEC. 1141. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
              VEHICLES.

    (a) In General.--Section 30D is amended to read as follows:

``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the sum of the credit amounts determined under subsection (b) 
with respect to each new qualified plug-in electric drive motor vehicle 
placed in service by the taxpayer during the taxable year.
    ``(b) Per Vehicle Dollar Limitation.--
        ``(1) In general.--The amount determined under this subsection 
    with respect to any new qualified plug-in electric drive motor 
    vehicle is the sum of the amounts determined under paragraphs (2) 
    and (3) with respect to such vehicle.
        ``(2) Base amount.--The amount determined under this paragraph 
    is $2,500.
        ``(3) Battery capacity.--In the case of a vehicle which draws 
    propulsion energy from a battery with not less than 5 kilowatt 
    hours of capacity, the amount determined under this paragraph is 
    $417, plus $417 for each kilowatt hour of capacity in excess of 5 
    kilowatt hours. The amount determined under this paragraph shall 
    not exceed $5,000.
    ``(c) Application With Other Credits.--
        ``(1) Business credit treated as part of general business 
    credit.--So much of the credit which would be allowed under 
    subsection (a) for any taxable year (determined without regard to 
    this subsection) that is attributable to property of a character 
    subject to an allowance for depreciation shall be treated as a 
    credit listed in section 38(b) for such taxable year (and not 
    allowed under subsection (a)).
        ``(2) Personal credit.--
            ``(A) In general.--For purposes of this title, the credit 
        allowed under subsection (a) for any taxable year (determined 
        after application of paragraph (1)) shall be treated as a 
        credit allowable under subpart A for such taxable year.
            ``(B) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for any taxable year 
        (determined after application of paragraph (1)) shall not 
        exceed the excess of--
                ``(i) the sum of the regular tax liability (as defined 
            in section 26(b)) plus the tax imposed by section 55, over
                ``(ii) the sum of the credits allowable under subpart A 
            (other than this section and sections 23 and 25D) and 
            section 27 for the taxable year.
    ``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--For 
purposes of this section--
        ``(1) In general.--The term `new qualified plug-in electric 
    drive motor vehicle' means a motor vehicle--
            ``(A) the original use of which commences with the 
        taxpayer,
            ``(B) which is acquired for use or lease by the taxpayer 
        and not for resale,
            ``(C) which is made by a manufacturer,
            ``(D) which is treated as a motor vehicle for purposes of 
        title II of the Clean Air Act,
            ``(E) which has a gross vehicle weight rating of less than 
        14,000 pounds, and
            ``(F) which is propelled to a significant extent by an 
        electric motor which draws electricity from a battery which--
                ``(i) has a capacity of not less than 4 kilowatt hours, 
            and
                ``(ii) is capable of being recharged from an external 
            source of electricity.
        ``(2) Motor vehicle.--The term `motor vehicle' means any 
    vehicle which is manufactured primarily for use on public streets, 
    roads, and highways (not including a vehicle operated exclusively 
    on a rail or rails) and which has at least 4 wheels.
        ``(3) Manufacturer.--The term `manufacturer' has the meaning 
    given such term in regulations prescribed by the Administrator of 
    the Environmental Protection Agency for purposes of the 
    administration of title II of the Clean Air Act (42 U.S.C. 7521 et 
    seq.).
        ``(4) Battery capacity.--The term `capacity' means, with 
    respect to any battery, the quantity of electricity which the 
    battery is capable of storing, expressed in kilowatt hours, as 
    measured from a 100 percent state of charge to a 0 percent state of 
    charge.
    ``(e) Limitation on Number of New Qualified Plug-in Electric Drive 
Motor Vehicles Eligible for Credit.--
        ``(1) In general.--In the case of a new qualified plug-in 
    electric drive motor vehicle sold during the phaseout period, only 
    the applicable percentage of the credit otherwise allowable under 
    subsection (a) shall be allowed.
        ``(2) Phaseout period.--For purposes of this subsection, the 
    phaseout period is the period beginning with the second calendar 
    quarter following the calendar quarter which includes the first 
    date on which the number of new qualified plug-in electric drive 
    motor vehicles manufactured by the manufacturer of the vehicle 
    referred to in paragraph (1) sold for use in the United States 
    after December 31, 2009, is at least 200,000.
        ``(3) Applicable percentage.--For purposes of paragraph (1), 
    the applicable percentage is--
            ``(A) 50 percent for the first 2 calendar quarters of the 
        phaseout period,
            ``(B) 25 percent for the 3d and 4th calendar quarters of 
        the phaseout period, and
            ``(C) 0 percent for each calendar quarter thereafter.
        ``(4) Controlled groups.--Rules similar to the rules of section 
    30B(f)(4) shall apply for purposes of this subsection.
    ``(f) Special Rules.--
        ``(1) Basis reduction.--For purposes of this subtitle, the 
    basis of any property for which a credit is allowable under 
    subsection (a) shall be reduced by the amount of such credit so 
    allowed.
        ``(2) No double benefit.--The amount of any deduction or other 
    credit allowable under this chapter for a new qualified plug-in 
    electric drive motor vehicle shall be reduced by the amount of 
    credit allowed under subsection (a) for such vehicle.
        ``(3) Property used by tax-exempt entity.--In the case of a 
    vehicle the use of which is described in paragraph (3) or (4) of 
    section 50(b) and which is not subject to a lease, the person who 
    sold such vehicle to the person or entity using such vehicle shall 
    be treated as the taxpayer that placed such vehicle in service, but 
    only if such person clearly discloses to such person or entity in a 
    document the amount of any credit allowable under subsection (a) 
    with respect to such vehicle (determined without regard to 
    subsection (c)).
        ``(4) Property used outside united states not qualified.--No 
    credit shall be allowable under subsection (a) with respect to any 
    property referred to in section 50(b)(1).
        ``(5) Recapture.--The Secretary shall, by regulations, provide 
    for recapturing the benefit of any credit allowable under 
    subsection (a) with respect to any property which ceases to be 
    property eligible for such credit.
        ``(6) Election not to take credit.--No credit shall be allowed 
    under subsection (a) for any vehicle if the taxpayer elects to not 
    have this section apply to such vehicle.
        ``(7) Interaction with air quality and motor vehicle safety 
    standards.--A motor vehicle shall not be considered eligible for a 
    credit under this section unless such vehicle is in compliance 
    with--
            ``(A) the applicable provisions of the Clean Air Act for 
        the applicable make and model year of the vehicle (or 
        applicable air quality provisions of State law in the case of a 
        State which has adopted such provision under a waiver under 
        section 209(b) of the Clean Air Act), and
            ``(B) the motor vehicle safety provisions of sections 30101 
        through 30169 of title 49, United States Code.''.
    (b) Conforming Amendments.--
        (1) Section 30B(d)(3)(D) is amended by striking ``subsection 
    (d) thereof'' and inserting ``subsection (c) thereof''.
        (2) Section 38(b)(35) is amended by striking ``30D(d)(1)'' and 
    inserting ``30D(c)(1)''.
        (3) Section 1016(a)(25) is amended by striking ``section 
    30D(e)(4)'' and inserting ``section 30D(f)(1)''.
        (4) Section 6501(m) is amended by striking ``section 
    30D(e)(9)'' and inserting ``section 30D(e)(4)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to vehicles acquired after December 31, 2009.

SEC. 1142. CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES.

    (a) In General.--Section 30 is amended to read as follows:

``SEC. 30. CERTAIN PLUG-IN ELECTRIC VEHICLES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to 10 percent of the cost of any qualified plug-in electric 
vehicle placed in service by the taxpayer during the taxable year.
    ``(b) Per Vehicle Dollar Limitation.--The amount of the credit 
allowed under subsection (a) with respect to any vehicle shall not 
exceed $2,500.
    ``(c) Application With Other Credits.--
        ``(1) Business credit treated as part of general business 
    credit.--So much of the credit which would be allowed under 
    subsection (a) for any taxable year (determined without regard to 
    this subsection) that is attributable to property of a character 
    subject to an allowance for depreciation shall be treated as a 
    credit listed in section 38(b) for such taxable year (and not 
    allowed under subsection (a)).
        ``(2) Personal credit.--
            ``(A) In general.--For purposes of this title, the credit 
        allowed under subsection (a) for any taxable year (determined 
        after application of paragraph (1)) shall be treated as a 
        credit allowable under subpart A for such taxable year.
            ``(B) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for any taxable year 
        (determined after application of paragraph (1)) shall not 
        exceed the excess of--
                ``(i) the sum of the regular tax liability (as defined 
            in section 26(b)) plus the tax imposed by section 55, over
                ``(ii) the sum of the credits allowable under subpart A 
            (other than this section and sections 23, 25D, and 30D) and 
            section 27 for the taxable year.
    ``(d) Qualified Plug-in Electric Vehicle.--For purposes of this 
section--
        ``(1) In general.--The term `qualified plug-in electric 
    vehicle' means a specified vehicle--
            ``(A) the original use of which commences with the 
        taxpayer,
            ``(B) which is acquired for use or lease by the taxpayer 
        and not for resale,
            ``(C) which is made by a manufacturer,
            ``(D) which is manufactured primarily for use on public 
        streets, roads, and highways,
            ``(E) which has a gross vehicle weight rating of less than 
        14,000 pounds, and
            ``(F) which is propelled to a significant extent by an 
        electric motor which draws electricity from a battery which--
                ``(i) has a capacity of not less than 4 kilowatt hours 
            (2.5 kilowatt hours in the case of a vehicle with 2 or 3 
            wheels), and
                ``(ii) is capable of being recharged from an external 
            source of electricity.
        ``(2) Specified vehicle.--The term `specified vehicle' means 
    any vehicle which--
            ``(A) is a low speed vehicle within the meaning of section 
        571.3 of title 49, Code of Federal Regulations (as in effect on 
        the date of the enactment of the American Recovery and 
        Reinvestment Tax Act of 2009), or
            ``(B) has 2 or 3 wheels.
        ``(3) Manufacturer.--The term `manufacturer' has the meaning 
    given such term in regulations prescribed by the Administrator of 
    the Environmental Protection Agency for purposes of the 
    administration of title II of the Clean Air Act (42 U.S.C. 7521 et 
    seq.).
        ``(4) Battery capacity.--The term `capacity' means, with 
    respect to any battery, the quantity of electricity which the 
    battery is capable of storing, expressed in kilowatt hours, as 
    measured from a 100 percent state of charge to a 0 percent state of 
    charge.
    ``(e) Special Rules.--
        ``(1) Basis reduction.--For purposes of this subtitle, the 
    basis of any property for which a credit is allowable under 
    subsection (a) shall be reduced by the amount of such credit so 
    allowed.
        ``(2) No double benefit.--The amount of any deduction or other 
    credit allowable under this chapter for a new qualified plug-in 
    electric drive motor vehicle shall be reduced by the amount of 
    credit allowable under subsection (a) for such vehicle.
        ``(3) Property used by tax-exempt entity.--In the case of a 
    vehicle the use of which is described in paragraph (3) or (4) of 
    section 50(b) and which is not subject to a lease, the person who 
    sold such vehicle to the person or entity using such vehicle shall 
    be treated as the taxpayer that placed such vehicle in service, but 
    only if such person clearly discloses to such person or entity in a 
    document the amount of any credit allowable under subsection (a) 
    with respect to such vehicle (determined without regard to 
    subsection (c)).
        ``(4) Property used outside united states not qualified.--No 
    credit shall be allowable under subsection (a) with respect to any 
    property referred to in section 50(b)(1).
        ``(5) Recapture.--The Secretary shall, by regulations, provide 
    for recapturing the benefit of any credit allowable under 
    subsection (a) with respect to any property which ceases to be 
    property eligible for such credit.
        ``(6) Election not to take credit.--No credit shall be allowed 
    under subsection (a) for any vehicle if the taxpayer elects to not 
    have this section apply to such vehicle.
    ``(f) Termination.--This section shall not apply to any vehicle 
acquired after December 31, 2011.''.
    (b) Conforming Amendments.--
        (1)(A) Section 24(b)(3)(B) is amended by inserting ``30,'' 
    after ``25D,''.
        (B) Section 25(e)(1)(C)(ii) is amended by inserting ``30,'' 
    after ``25D,''.
        (C) Section 25B(g)(2) is amended by inserting ``30,'' after 
    ``25D,''.
        (D) Section 26(a)(1) is amended by inserting ``30,'' after 
    ``25D,''.
        (E) Section 904(i) is amended by striking ``and 25B'' and 
    inserting ``25B, 30, and 30D''.
        (F) Section 1400C(d)(2) is amended by striking ``and 25D'' and 
    inserting ``25D, and 30''.
        (2) Paragraph (1) of section 30B(h) is amended to read as 
    follows:
        ``(1) Motor vehicle.--The term `motor vehicle' means any 
    vehicle which is manufactured primarily for use on public streets, 
    roads, and highways (not including a vehicle operated exclusively 
    on a rail or rails) and which has at least 4 wheels.''.
        (3) Section 30C(d)(2)(A) is amended by striking ``, 30,''.
        (4)(A) Section 53(d)(1)(B) is amended by striking clause (iii) 
    and redesignating clause (iv) as clause (iii).
        (B) Subclause (II) of section 53(d)(1)(B)(iii), as so 
    redesignated, is amended by striking ``increased in the manner 
    provided in clause (iii)''.
        (5) Section 55(c)(3) is amended by striking ``30(b)(3),''.
        (6) Section 1016(a)(25) is amended by striking ``section 
    30(d)(1)'' and inserting ``section 30(e)(1)''.
        (7) Section 6501(m) is amended by striking ``section 30(d)(4)'' 
    and inserting ``section 30(e)(6)''.
        (8) The item in the table of sections for subpart B of part IV 
    of subchapter A of chapter 1 is amended to read as follows:
``Sec. 30. Certain plug-in electric vehicles.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to vehicles acquired after the date of the enactment of this Act.
    (d) Transitional Rule.--In the case of a vehicle acquired after the 
date of the enactment of this Act and before January 1, 2010, no credit 
shall be allowed under section 30 of the Internal Revenue Code of 1986, 
as added by this section, if credit is allowable under section 30D of 
such Code with respect to such vehicle.
    (e) Application of EGTRRA Sunset.--The amendment made by subsection 
(b)(1)(A) shall be subject to title IX of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 in the same manner as the provision 
of such Act to which such amendment relates.

SEC. 1143. CONVERSION KITS.

    (a) In General.--Section 30B (relating to alternative motor vehicle 
credit) is amended by redesignating subsections (i) and (j) as 
subsections (j) and (k), respectively, and by inserting after 
subsection (h) the following new subsection:
    ``(i) Plug-in Conversion Credit.--
        ``(1) In general.--For purposes of subsection (a), the plug-in 
    conversion credit determined under this subsection with respect to 
    any motor vehicle which is converted to a qualified plug-in 
    electric drive motor vehicle is 10 percent of so much of the cost 
    of the converting such vehicle as does not exceed $40,000.
        ``(2) Qualified plug-in electric drive motor vehicle.--For 
    purposes of this subsection, the term `qualified plug-in electric 
    drive motor vehicle' means any new qualified plug-in electric drive 
    motor vehicle (as defined in section 30D, determined without regard 
    to whether such vehicle is made by a manufacturer or whether the 
    original use of such vehicle commences with the taxpayer).
        ``(3) Credit allowed in addition to other credits.--The credit 
    allowed under this subsection shall be allowed with respect to a 
    motor vehicle notwithstanding whether a credit has been allowed 
    with respect to such motor vehicle under this section (other than 
    this subsection) in any preceding taxable year.
        ``(4) Termination.--This subsection shall not apply to 
    conversions made after December 31, 2011.''.
    (b) Credit Treated as Part of Alternative Motor Vehicle Credit.--
Section 30B(a) is amended by striking ``and'' at the end of paragraph 
(3), by striking the period at the end of paragraph (4) and inserting 
``, and'', and by adding at the end the following new paragraph:
        ``(5) the plug-in conversion credit determined under subsection 
    (i).''.
    (c) No Recapture for Vehicles Converted to Qualified Plug-in 
Electric Drive Motor Vehicles.--Paragraph (8) of section 30B(h) is 
amended by adding at the end the following: ``, except that no benefit 
shall be recaptured if such property ceases to be eligible for such 
credit by reason of conversion to a qualified plug-in electric drive 
motor vehicle.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 1144. TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS A PERSONAL 
              CREDIT ALLOWED AGAINST AMT.

    (a) In General.--Paragraph (2) of section 30B(g) is amended to read 
as follows:
        ``(2) Personal credit.--
            ``(A) In general.--For purposes of this title, the credit 
        allowed under subsection (a) for any taxable year (determined 
        after application of paragraph (1)) shall be treated as a 
        credit allowable under subpart A for such taxable year.
            ``(B) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for any taxable year 
        (determined after application of paragraph (1)) shall not 
        exceed the excess of--
                ``(i) the sum of the regular tax liability (as defined 
            in section 26(b)) plus the tax imposed by section 55, over
                ``(ii) the sum of the credits allowable under subpart A 
            (other than this section and sections 23, 25D, 30, and 30D) 
            and section 27 for the taxable year.''.
    (b) Conforming Amendments.--
        (1)(A) Section 24(b)(3)(B), as amended by this Act, is amended 
    by inserting ``30B,'' after ``30,''.
        (B) Section 25(e)(1)(C)(ii), as amended by this Act, is amended 
    by inserting ``30B,'' after ``30,''.
        (C) Section 25B(g)(2), as amended by this Act, is amended by 
    inserting ``30B,'' after ``30,''.
        (D) Section 26(a)(1), as amended by this Act, is amended by 
    inserting ``30B,'' after ``30,''.
        (E) Section 904(i), as amended by this Act, is amended by 
    inserting ``30B,'' after ``30''.
        (F) Section 1400C(d)(2), as amended by this Act, is amended by 
    striking ``and 30'' and inserting ``30, and 30B''.
        (2) Section 30C(d)(2)(A), as amended by this Act, is amended by 
    striking ``sections 27 and 30B'' and inserting ``section 27''.
        (3) Section 55(c)(3) is amended by striking ``30B(g)(2),''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
    (d) Application of EGTRRA Sunset.--The amendment made by subsection 
(b)(1)(A) shall be subject to title IX of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 in the same manner as the provision 
of such Act to which such amendment relates.

           PART VI--PARITY FOR TRANSPORTATION FRINGE BENEFITS

SEC. 1151. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT BENEFITS AND 
              TRANSIT PASSES.

    (a) In General.--Paragraph (2) of section 132(f) is amended by 
adding at the end the following flush sentence:
    ``In the case of any month beginning on or after the date of the 
    enactment of this sentence and before January 1, 2011, subparagraph 
    (A) shall be applied as if the dollar amount therein were the same 
    as the dollar amount in effect for such month under subparagraph 
    (B).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to months beginning on or after the date of the enactment of this 
section.

                Subtitle C--Tax Incentives for Business

                PART I--TEMPORARY INVESTMENT INCENTIVES

SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009.

    (a) Extension of Special Allowance.--
        (1) In general.--Paragraph (2) of section 168(k) is amended--
            (A) by striking ``January 1, 2010'' and inserting ``January 
        1, 2011'', and
            (B) by striking ``January 1, 2009'' each place it appears 
        and inserting ``January 1, 2010''.
        (2) Conforming amendments.--
            (A) The heading for subsection (k) of section 168 is 
        amended by striking ``January 1, 2009'' and inserting ``January 
        1, 2010''.
            (B) The heading for clause (ii) of section 168(k)(2)(B) is 
        amended by striking ``pre-january 1, 2009'' and inserting 
        ``pre-january 1, 2010''.
            (C) Subparagraph (B) of section 168(l)(5) is amended by 
        striking ``January 1, 2009'' and inserting ``January 1, 2010''.
            (D) Subparagraph (C) of section 168(n)(2) is amended by 
        striking ``January 1, 2009'' and inserting ``January 1, 2010''.
            (E) Subparagraph (B) of section 1400N(d)(3) is amended by 
        striking ``January 1, 2009'' and inserting ``January 1, 2010''.
        (3) Technical amendments.--
            (A) Subparagraph (D) of section 168(k)(4) is amended--
                (i) by striking ``and'' at the end of clause (i),
                (ii) by redesignating clause (ii) as clause (iii), and
                (iii) by inserting after clause (i) the following new 
            clause:
                ``(ii) `April 1, 2008' shall be substituted for 
            `January 1, 2008' in subparagraph (A)(iii)(I) thereof, 
            and''.
            (B) Subparagraph (A) of section 6211(b)(4) is amended by 
        inserting ``168(k)(4),'' after ``53(e),''.
    (b) Extension of Election to Accelerate the Amt and Research 
Credits in Lieu of Bonus Depreciation.--
        (1) In general.--Section 168(k)(4) (relating to election to 
    accelerate the AMT and research credits in lieu of bonus 
    depreciation) is amended--
            (A) by striking ``2009'' and inserting ``2010''in 
        subparagraph (D)(iii) (as redesignated by subsection (a)(3)), 
        and
            (B) by adding at the end the following new subparagraph:
            ``(H) Special rules for extension property.--
                ``(i) Taxpayers previously electing acceleration.--In 
            the case of a taxpayer who made the election under 
            subparagraph (A) for its first taxable year ending after 
            March 31, 2008--

                    ``(I) the taxpayer may elect not to have this 
                paragraph apply to extension property, but
                    ``(II) if the taxpayer does not make the election 
                under subclause (I), in applying this paragraph to the 
                taxpayer a separate bonus depreciation amount, maximum 
                amount, and maximum increase amount shall be computed 
                and applied to eligible qualified property which is 
                extension property and to eligible qualified property 
                which is not extension property.

                ``(ii) Taxpayers not previously electing 
            acceleration.--In the case of a taxpayer who did not make 
            the election under subparagraph (A) for its first taxable 
            year ending after March 31, 2008--

                    ``(I) the taxpayer may elect to have this paragraph 
                apply to its first taxable year ending after December 
                31, 2008, and each subsequent taxable year, and
                    ``(II) if the taxpayer makes the election under 
                subclause (I), this paragraph shall only apply to 
                eligible qualified property which is extension 
                property.

                ``(iii) Extension property.--For purposes of this 
            subparagraph, the term `extension property' means property 
            which is eligible qualified property solely by reason of 
            the extension of the application of the special allowance 
            under paragraph (1) pursuant to the amendments made by 
            section 1201(a) of the American Recovery and Reinvestment 
            Tax Act of 2009 (and the application of such extension to 
            this paragraph pursuant to the amendment made by section 
            1201(b)(1) of such Act).''.
        (2) Technical amendment.--Section 6211(b)(4)(A) is amended by 
    inserting ``168(k)(4),'' after ``53(e),''.
    (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 amendments.--The amendments made by subsections 
    (a)(3) and (b)(2) shall apply to taxable years ending after March 
    31, 2008.

SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN 
              DEPRECIABLE BUSINESS ASSETS.

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

                   PART II--SMALL BUSINESS PROVISIONS

SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL BUSINESSES.

    (a) In General.--Subparagraph (H) of section 172(b)(1) is amended 
to read as follows:
            ``(H) Carryback for 2008 net operating losses of small 
        businesses.--
                ``(i) In general.--If an eligible small business elects 
            the application of this subparagraph with respect to an 
            applicable 2008 net operating loss--

                    ``(I) subparagraph (A)(i) shall be applied by 
                substituting any whole number elected by the taxpayer 
                which is more than 2 and less than 6 for `2',
                    ``(II) subparagraph (E)(ii) shall be applied by 
                substituting the whole number which is one less than 
                the whole number substituted under subclause (I) for 
                `2', and
                    ``(III) subparagraph (F) shall not apply.

                ``(ii) Applicable 2008 net operating loss.--For 
            purposes of this subparagraph, the term `applicable 2008 
            net operating loss' means--

                    ``(I) the taxpayer's net operating loss for any 
                taxable year ending in 2008, or
                    ``(II) if the taxpayer elects to have this 
                subclause apply in lieu of subclause (I), the 
                taxpayer's net operating loss for any taxable year 
                beginning in 2008.

                ``(iii) Election.--Any election under this subparagraph 
            shall be made in such manner as may be prescribed by the 
            Secretary, and shall be made by the due date (including 
            extension of time) for filing the taxpayer's return for the 
            taxable year of the net operating loss. Any such election, 
            once made, shall be irrevocable. Any election under this 
            subparagraph may be made only with respect to 1 taxable 
            year.
                ``(iv) Eligible small business.--For purposes of this 
            subparagraph, the term `eligible small business' has the 
            meaning given such term by subparagraph (F)(iii), except 
            that in applying such subparagraph, section 448(c) shall be 
            applied by substituting `$15,000,000' for `$5,000,000' each 
            place it appears.''.
    (b) Conforming Amendment.--Section 172 is amended by striking 
subsection (k) and by redesignating subsection (l) as subsection (k).
    (c) Anti-Abuse Rules.--The Secretary of Treasury or the Secretary's 
designee shall prescribe such rules as are necessary to prevent the 
abuse of the purposes of the amendments made by this section, including 
anti-stuffing rules, anti-churning rules (including rules relating to 
sale-leasebacks), and rules similar to the rules under section 1091 of 
the Internal Revenue Code of 1986 relating to losses from wash sales.
    (d) Effective Date.--
        (1) In general.--Except as otherwise provided in this 
    subsection, the amendments made by this section shall apply to net 
    operating losses arising in taxable years ending after December 31, 
    2007.
        (2) Transitional rule.--In the case of a net operating loss for 
    a taxable year ending before the date of the enactment of this 
    Act--
            (A) any election made under section 172(b)(3) of the 
        Internal Revenue Code of 1986 with respect to such loss may 
        (notwithstanding such section) be revoked before the applicable 
        date,
            (B) any election made under section 172(b)(1)(H) of such 
        Code with respect to such loss shall (notwithstanding such 
        section) be treated as timely made if made before the 
        applicable date, and
            (C) any application under section 6411(a) of such Code with 
        respect to such loss shall be treated as timely filed if filed 
        before the applicable date.
    For purposes of this paragraph, the term ``applicable date'' means 
    the date which is 60 days after the date of the enactment of this 
    Act.

SEC. 1212. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 FOR 
              CERTAIN SMALL BUSINESSES.

    Paragraph (1) of section 6654(d) is amended by adding at the end 
the following new subparagraph:
            ``(D) Special rule for 2009.--
                ``(i) In general.--Notwithstanding subparagraph (C), in 
            the case of any taxable year beginning in 2009, clause (ii) 
            of subparagraph (B) shall be applied to any qualified 
            individual by substituting `90 percent' for `100 percent'.
                ``(ii) Qualified individual.--For purposes of this 
            subparagraph, the term `qualified individual' means any 
            individual if--

                    ``(I) the adjusted gross income shown on the return 
                of such individual for the preceding taxable year is 
                less than $500,000, and
                    ``(II) such individual certifies that more than 50 
                percent of the gross income shown on the return of such 
                individual for the preceding taxable year was income 
                from a small business.

            A certification under subclause (II) shall be in such form 
            and manner and filed at such time as the Secretary may by 
            regulations prescribe.
                ``(iii) Income from a small business.--For purposes of 
            clause (ii), income from a small business means, with 
            respect to any individual, income from a trade or business 
            the average number of employees of which was less than 500 
            employees for the calendar year ending with or within the 
            preceding taxable year of the individual.
                ``(iv) Separate returns.--In the case of a married 
            individual (within the meaning of section 7703) who files a 
            separate return for the taxable year for which the amount 
            of the installment is being determined, clause (ii)(I) 
            shall be applied by substituting `$250,000' for `$500,000'.
                ``(v) Estates and trusts.--In the case of an estate or 
            trust, adjusted gross income shall be determined as 
            provided in section 67(e).''.

                   PART III--INCENTIVES FOR NEW JOBS

SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED 
              YOUTH.

    (a) In General.--Subsection (d) of section 51 is amended by adding 
at the end the following new paragraph:
        ``(14) Credit allowed for unemployed veterans and disconnected 
    youth hired in 2009 or 2010.--
            ``(A) In general.--Any unemployed veteran or disconnected 
        youth who begins work for the employer during 2009 or 2010 
        shall be treated as a member of a targeted group for purposes 
        of this subpart.
            ``(B) Definitions.--For purposes of this paragraph--
                ``(i) Unemployed veteran.--The term `unemployed 
            veteran' means any veteran (as defined in paragraph (3)(B), 
            determined without regard to clause (ii) thereof) who is 
            certified by the designated local agency as--

                    ``(I) having been discharged or released from 
                active duty in the Armed Forces at any time during the 
                5-year period ending on the hiring date, and
                    ``(II) being in receipt of unemployment 
                compensation under State or Federal law for not less 
                than 4 weeks during the 1-year period ending on the 
                hiring date.

                ``(ii) Disconnected youth.--The term `disconnected 
            youth' means any individual who is certified by the 
            designated local agency--

                    ``(I) as having attained age 16 but not age 25 on 
                the hiring date,
                    ``(II) as not regularly attending any secondary, 
                technical, or post-secondary school during the 6-month 
                period preceding the hiring date,
                    ``(III) as not regularly employed during such 6-
                month period, and
                    ``(IV) as not readily employable by reason of 
                lacking a sufficient number of basic skills.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after December 31, 
2008.

              PART IV--RULES RELATING TO DEBT INSTRUMENTS

SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM 
              BUSINESS INDEBTEDNESS DISCHARGED BY THE REACQUISITION OF 
              A DEBT INSTRUMENT.

    (a) In General.--Section 108 (relating to income from discharge of 
indebtedness) is amended by adding at the end the following new 
subsection:
    ``(i) Deferral and Ratable Inclusion of Income Arising From 
Business Indebtedness Discharged by the Reacquisition of a Debt 
Instrument.--
        ``(1) In general.--At the election of the taxpayer, income from 
    the discharge of indebtedness in connection with the reacquisition 
    after December 31, 2008, and before January 1, 2011, of an 
    applicable debt instrument shall be includible in gross income 
    ratably over the 5-taxable-year period beginning with--
            ``(A) in the case of a reacquisition occurring in 2009, the 
        fifth taxable year following the taxable year in which the 
        reacquisition occurs, and
            ``(B) in the case of a reacquisition occurring in 2010, the 
        fourth taxable year following the taxable year in which the 
        reacquisition occurs.
        ``(2) Deferral of deduction for original issue discount in debt 
    for debt exchanges.--
            ``(A) In general.--If, as part of a reacquisition to which 
        paragraph (1) applies, any debt instrument is issued for the 
        applicable debt instrument being reacquired (or is treated as 
        so issued under subsection (e)(4) and the regulations 
        thereunder) and there is any original issue discount determined 
        under subpart A of part V of subchapter P of this chapter with 
        respect to the debt instrument so issued--
                ``(i) except as provided in clause (ii), no deduction 
            otherwise allowable under this chapter shall be allowed to 
            the issuer of such debt instrument with respect to the 
            portion of such original issue discount which--

                    ``(I) accrues before the 1st taxable year in the 5-
                taxable-year period in which income from the discharge 
                of indebtedness attributable to the reacquisition of 
                the debt instrument is includible under paragraph (1), 
                and
                    ``(II) does not exceed the income from the 
                discharge of indebtedness with respect to the debt 
                instrument being reacquired, and

                ``(ii) the aggregate amount of deductions disallowed 
            under clause (i) shall be allowed as a deduction ratably 
            over the 5-taxable-year period described in clause (i)(I).
        If the amount of the original issue discount accruing before 
        such 1st taxable year exceeds the income from the discharge of 
        indebtedness with respect to the applicable debt instrument 
        being reacquired, the deductions shall be disallowed in the 
        order in which the original issue discount is accrued.
            ``(B) Deemed debt for debt exchanges.--For purposes of 
        subparagraph (A), if any debt instrument is issued by an issuer 
        and the proceeds of such debt instrument are used directly or 
        indirectly by the issuer to reacquire an applicable debt 
        instrument of the issuer, the debt instrument so issued shall 
        be treated as issued for the debt instrument being reacquired. 
        If only a portion of the proceeds from a debt instrument are so 
        used, the rules of subparagraph (A) shall apply to the portion 
        of any original issue discount on the newly issued debt 
        instrument which is equal to the portion of the proceeds from 
        such instrument used to reacquire the outstanding instrument.
        ``(3) Applicable debt instrument.--For purposes of this 
    subsection--
            ``(A) Applicable debt instrument.--The term `applicable 
        debt instrument' means any debt instrument which was issued 
        by--
                ``(i) a C corporation, or
                ``(ii) any other person in connection with the conduct 
            of a trade or business by such person.
            ``(B) Debt instrument.--The term `debt instrument' means a 
        bond, debenture, note, certificate, or any other instrument or 
        contractual arrangement constituting indebtedness (within the 
        meaning of section 1275(a)(1)).
        ``(4) Reacquisition.--For purposes of this subsection--
            ``(A) In general.--The term `reacquisition' means, with 
        respect to any applicable debt instrument, any acquisition of 
        the debt instrument by--
                ``(i) the debtor which issued (or is otherwise the 
            obligor under) the debt instrument, or
                ``(ii) a related person to such debtor.
            ``(B) Acquisition.--The term `acquisition' shall, with 
        respect to any applicable debt instrument, include an 
        acquisition of the debt instrument for cash, the exchange of 
        the debt instrument for another debt instrument (including an 
        exchange resulting from a modification of the debt instrument), 
        the exchange of the debt instrument for corporate stock or a 
        partnership interest, and the contribution of the debt 
        instrument to capital. Such term shall also include the 
        complete forgiveness of the indebtedness by the holder of the 
        debt instrument.
        ``(5) Other definitions and rules.--For purposes of this 
    subsection--
            ``(A) Related person.--The determination of whether a 
        person is related to another person shall be made in the same 
        manner as under subsection (e)(4).
            ``(B) Election.--
                ``(i) In general.--An election under this subsection 
            with respect to any applicable debt instrument shall be 
            made by including with the return of tax imposed by chapter 
            1 for the taxable year in which the reacquisition of the 
            debt instrument occurs a statement which--

                    ``(I) clearly identifies such instrument, and
                    ``(II) includes the amount of income to which 
                paragraph (1) applies and such other information as the 
                Secretary may prescribe.

                ``(ii) Election irrevocable.--Such election, once made, 
            is irrevocable.
                ``(iii) Pass-thru entities.--In the case of a 
            partnership, S corporation, or other pass-thru entity, the 
            election under this subsection shall be made by the 
            partnership, the S corporation, or other entity involved.
            ``(C) Coordination with other exclusions.--If a taxpayer 
        elects to have this subsection apply to an applicable debt 
        instrument, subparagraphs (A), (B), (C), and (D) of subsection 
        (a)(1) shall not apply to the income from the discharge of such 
        indebtedness for the taxable year of the election or any 
        subsequent taxable year.
            ``(D) Acceleration of deferred items.--
                ``(i) In general.--In the case of the death of the 
            taxpayer, the liquidation or sale of substantially all the 
            assets of the taxpayer (including in a title 11 or similar 
            case), the cessation of business by the taxpayer, or 
            similar circumstances, any item of income or deduction 
            which is deferred under this subsection (and has not 
            previously been taken into account) shall be taken into 
            account in the taxable year in which such event occurs (or 
            in the case of a title 11 or similar case, the day before 
            the petition is filed).
                ``(ii) Special rule for pass-thru entities.--The rule 
            of clause (i) shall also apply in the case of the sale or 
            exchange or redemption of an interest in a partnership, S 
            corporation, or other pass- thru entity by a partner, 
            shareholder, or other person holding an ownership interest 
            in such entity.
        ``(6) Special rule for partnerships.--In the case of a 
    partnership, any income deferred under this subsection shall be 
    allocated to the partners in the partnership immediately before the 
    discharge in the manner such amounts would have been included in 
    the distributive shares of such partners under section 704 if such 
    income were recognized at such time. Any decrease in a partner's 
    share of partnership liabilities as a result of such discharge 
    shall not be taken into account for purposes of section 752 at the 
    time of the discharge to the extent it would cause the partner to 
    recognize gain under section 731. Any decrease in partnership 
    liabilities deferred under the preceding sentence shall be taken 
    into account by such partner at the same time, and to the extent 
    remaining in the same amount, as income deferred under this 
    subsection is recognized.
        ``(7) Secretarial authority.--The Secretary may prescribe such 
    regulations, rules, or other guidance as may be necessary or 
    appropriate for purposes of applying this subsection, including--
            ``(A) extending the application of the rules of paragraph 
        (5)(D) to other circumstances where appropriate,
            ``(B) requiring reporting of the election (and such other 
        information as the Secretary may require) on returns of tax for 
        subsequent taxable years, and
            ``(C) rules for the application of this subsection to 
        partnerships, S corporations, and other pass-thru entities, 
        including for the allocation of deferred deductions.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to discharges in taxable years ending after December 31, 2008.

SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT ON 
              CERTAIN HIGH YIELD OBLIGATIONS.

    (a) Suspension of Special Rules.--Section 163(e)(5) (relating to 
special rules for original issue discount on certain high yield 
obligations) is amended by redesignating subparagraph (F) as 
subparagraph (G) and by inserting after subparagraph (E) the following 
new subparagraph:
            ``(F) Suspension of application of paragraph.--
                ``(i) Temporary suspension.--This paragraph shall not 
            apply to any applicable high yield discount obligation 
            issued during the period beginning on September 1, 2008, 
            and ending on December 31, 2009, in exchange (including an 
            exchange resulting from a modification of the debt 
            instrument) for an obligation which is not an applicable 
            high yield discount obligation and the issuer (or obligor) 
            of which is the same as the issuer (or obligor) of such 
            applicable high yield discount obligation. The preceding 
            sentence shall not apply to any obligation the interest on 
            which is interest described in section 871(h)(4) (without 
            regard to subparagraph (D) thereof) or to any obligation 
            issued to a related person (within the meaning of section 
            108(e)(4)).
                ``(ii) Successive application.--Any obligation to which 
            clause (i) applies shall not be treated as an applicable 
            high yield discount obligation for purposes of applying 
            this subparagraph to any other obligation issued in 
            exchange for such obligation.
                ``(iii) Secretarial authority to suspend application.--
            The Secretary may apply this paragraph with respect to debt 
            instruments issued in periods following the period 
            described in clause (i) if the Secretary determines that 
            such application is appropriate in light of distressed 
            conditions in the debt capital markets.''.
    (b) Interest Rate Used in Determining High Yield Obligations.--The 
last sentence of section 163(i)(1) is amended--
        (1) by inserting ``(i)'' after ``regulation'', and
        (2) by inserting ``, or (ii) permit, on a temporary basis, a 
    rate to be used with respect to any debt instrument which is higher 
    than the applicable Federal rate if the Secretary determines that 
    such rate is appropriate in light of distressed conditions in the 
    debt capital markets'' before the period at the end.
    (c) Effective Date.--
        (1) Suspension.--The amendments made by subsection (a) shall 
    apply to obligations issued after August 31, 2008, in taxable years 
    ending after such date.
        (2) Interest rate authority.--The amendments made by subsection 
    (b) shall apply to obligations issued after December 31, 2009, in 
    taxable years ending after such date.

                 PART V--QUALIFIED SMALL BUSINESS STOCK

SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK 
              FOR 2009 AND 2010.

    (a) In General.--Section 1202(a) is amended by adding at the end 
the following new paragraph:
        ``(3) Special rules for 2009 and 2010.--In the case of 
    qualified small business stock acquired after the date of the 
    enactment of this paragraph and before January 1, 2011--
            ``(A) paragraph (1) shall be applied by substituting `75 
        percent' for `50 percent', and
            ``(B) paragraph (2) shall not apply.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to stock acquired after the date of the enactment of this Act.

                        PART VI--S CORPORATIONS

SEC. 1251. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS 
              TAX.

    (a) In General.--Paragraph (7) of section 1374(d) (relating to 
definitions and special rules) is amended to read as follows:
        ``(7) Recognition period.--
            ``(A) In general.--The term `recognition period' means the 
        10-year period beginning with the 1st day of the 1st taxable 
        year for which the corporation was an S corporation.
            ``(B) Special rule for 2009 and 2010.--In the case of any 
        taxable year beginning in 2009 or 2010, no tax shall be imposed 
        on the net recognized built-in gain of an S corporation if the 
        7th taxable year in the recognition period preceded such 
        taxable year. The preceding sentence shall be applied 
        separately with respect to any asset to which paragraph (8) 
        applies.
            ``(C) Special rule for distributions to shareholders.--For 
        purposes of applying this section to any amount includible in 
        income by reason of distributions to shareholders pursuant to 
        section 593(e)--
                ``(i) subparagraph (A) shall be applied without regard 
            to the phrase `10-year', and
                ``(ii) subparagraph (B) shall not apply.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2008.

             PART VII--RULES RELATING TO OWNERSHIP CHANGES

SEC. 1261. CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON 
              CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE.

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

SEC. 1262. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PURPOSES OF 
              LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND 
              CERTAIN BUILT-IN LOSSES.

    (a) In General.--Section 382 is amended by adding at the end the 
following new subsection:
    ``(n) Special Rule for Certain Ownership Changes.--
        ``(1) In general.--The limitation contained in subsection (a) 
    shall not apply in the case of an ownership change which is 
    pursuant to a restructuring plan of a taxpayer which--
            ``(A) is required under a loan agreement or a commitment 
        for a line of credit entered into with the Department of the 
        Treasury under the Emergency Economic Stabilization Act of 
        2008, and
            ``(B) is intended to result in a rationalization of the 
        costs, capitalization, and capacity with respect to the 
        manufacturing workforce of, and suppliers to, the taxpayer and 
        its subsidiaries.
        ``(2) Subsequent acquisitions.--Paragraph (1) shall not apply 
    in the case of any subsequent ownership change unless such 
    ownership change is described in such paragraph.
        ``(3) Limitation based on control in corporation.--
            ``(A) In general.--Paragraph (1) shall not apply in the 
        case of any ownership change if, immediately after such 
        ownership change, any person (other than a voluntary employees' 
        beneficiary association under section 501(c)(9)) owns stock of 
        the new loss corporation possessing 50 percent or more of the 
        total combined voting power of all classes of stock entitled to 
        vote, or of the total value of the stock of such corporation.
            ``(B) Treatment of related persons.--
                ``(i) In general.--Related persons shall be treated as 
            a single person for purposes of this paragraph.
                ``(ii) Related persons.--For purposes of clause (i), a 
            person shall be treated as related to another person if--

                    ``(I) such person bears a relationship to such 
                other person described in section 267(b) or 707(b), or
                    ``(II) such persons are members of a group of 
                persons acting in concert.''.

    (b) Effective Date.--The amendment made by this section shall apply 
to ownership changes after the date of the enactment of this Act.

             Subtitle D--Manufacturing Recovery Provisions

SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL 
              DEVELOPMENT BONDS TO FACILITIES MANUFACTURING INTANGIBLE 
              PROPERTY.

    (a) In General.--Subparagraph (C) of section 144(a)(12) is 
amended--
        (1) by striking ``For purposes of this paragraph, the term'' 
    and inserting ``For purposes of this paragraph--
                ``(i) In general.--The term'', and
        (2) by striking the last sentence and inserting the following 
    new clauses:
                ``(ii) Certain facilities included.--Such term includes 
            facilities which are directly related and ancillary to a 
            manufacturing facility (determined without regard to this 
            clause) if--

                    ``(I) such facilities are located on the same site 
                as the manufacturing facility, and
                    ``(II) not more than 25 percent of the net proceeds 
                of the issue are used to provide such facilities.

                ``(iii) Special rules for bonds issued in 2009 and 
            2010.--In the case of any issue made after the date of 
            enactment of this clause and before January 1, 2011, clause 
            (ii) shall not apply and the net proceeds from a bond shall 
            be considered to be used to provide a manufacturing 
            facility if such proceeds are used to provide--

                    ``(I) a facility which is used in the creation or 
                production of intangible property which is described in 
                section 197(d)(1)(C)(iii), or
                    ``(II) a facility which is functionally related and 
                subordinate to a manufacturing facility (determined 
                without regard to this subclause) if such facility is 
                located on the same site as the manufacturing 
                facility.''.

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

SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY FACILITIES.

    (a) In General.--Section 46 (relating to amount of credit) is 
amended by striking ``and'' at the end of paragraph (3), by striking 
the period at the end of paragraph (4), and by adding at the end the 
following new paragraph:
        ``(5) the qualifying advanced energy project credit.''.
    (b) Amount of Credit.--Subpart E of part IV of subchapter A of 
chapter 1 (relating to rules for computing investment credit) is 
amended by inserting after section 48B the following new section:

``SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

    ``(a) In General.--For purposes of section 46, the qualifying 
advanced energy project credit for any taxable year is an amount equal 
to 30 percent of the qualified investment for such taxable year with 
respect to any qualifying advanced energy project of the taxpayer.
    ``(b) Qualified Investment.--
        ``(1) In general.--For purposes of subsection (a), the 
    qualified investment for any taxable year is the basis of eligible 
    property placed in service by the taxpayer during such taxable year 
    which is part of a qualifying advanced energy project.
        ``(2) Certain qualified progress expenditures rules made 
    applicable.--Rules similar to the rules of subsections (c)(4) and 
    (d) of section 46 (as in effect on the day before the enactment of 
    the Revenue Reconciliation Act of 1990) shall apply for purposes of 
    this section.
        ``(3) Limitation.--The amount which is treated for all taxable 
    years with respect to any qualifying advanced energy project shall 
    not exceed the amount designated by the Secretary as eligible for 
    the credit under this section.
    ``(c) Definitions.--
        ``(1) Qualifying advanced energy project.--
            ``(A) In general.--The term `qualifying advanced energy 
        project' means a project--
                ``(i) which re-equips, expands, or establishes a 
            manufacturing facility for the production of--

                    ``(I) property designed to be used to produce 
                energy from the sun, wind, geothermal deposits (within 
                the meaning of section 613(e)(2)), or other renewable 
                resources,
                    ``(II) fuel cells, microturbines, or an energy 
                storage system for use with electric or hybrid-electric 
                motor vehicles,
                    ``(III) electric grids to support the transmission 
                of intermittent sources of renewable energy, including 
                storage of such energy,
                    ``(IV) property designed to capture and sequester 
                carbon dioxide emissions,
                    ``(V) property designed to refine or blend 
                renewable fuels or to produce energy conservation 
                technologies (including energy-conserving lighting 
                technologies and smart grid technologies),
                    ``(VI) new qualified plug-in electric drive motor 
                vehicles (as defined by section 30D), qualified plug-in 
                electric vehicles (as defined by section 30(d)), or 
                components which are designed specifically for use with 
                such vehicles, including electric motors, generators, 
                and power control units, or
                    ``(VII) other advanced energy property designed to 
                reduce greenhouse gas emissions as may be determined by 
                the Secretary, and

                ``(ii) any portion of the qualified investment of which 
            is certified by the Secretary under subsection (d) as 
            eligible for a credit under this section.
            ``(B) Exception.--Such term shall not include any portion 
        of a project for the production of any property which is used 
        in the refining or blending of any transportation fuel (other 
        than renewable fuels).
        ``(2) Eligible property.--The term `eligible property' means 
    any property--
            ``(A) which is necessary for the production of property 
        described in paragraph (1)(A)(i),
            ``(B) which is--
                ``(i) tangible personal property, or
                ``(ii) other tangible property (not including a 
            building or its structural components), but only if such 
            property is used as an integral part of the qualified 
            investment credit facility, and
            ``(C) with respect to which depreciation (or amortization 
        in lieu of depreciation) is allowable.
    ``(d) Qualifying Advanced Energy Project Program.--
        ``(1) Establishment.--
            ``(A) In general.--Not later than 180 days after the date 
        of enactment of this section, the Secretary, in consultation 
        with the Secretary of Energy, shall establish a qualifying 
        advanced energy project program to consider and award 
        certifications for qualified investments eligible for credits 
        under this section to qualifying advanced energy project 
        sponsors.
            ``(B) Limitation.--The total amount of credits that may be 
        allocated under the program shall not exceed $2,300,000,000.
        ``(2) Certification.--
            ``(A) Application period.--Each applicant for certification 
        under this paragraph shall submit an application containing 
        such information as the Secretary may require during the 2-year 
        period beginning on the date the Secretary establishes the 
        program under paragraph (1).
            ``(B) Time to meet criteria for certification.--Each 
        applicant for certification shall have 1 year from the date of 
        acceptance by the Secretary of the application during which to 
        provide to the Secretary evidence that the requirements of the 
        certification have been met.
            ``(C) Period of issuance.--An applicant which receives a 
        certification shall have 3 years from the date of issuance of 
        the certification in order to place the project in service and 
        if such project is not placed in service by that time period, 
        then the certification shall no longer be valid.
        ``(3) Selection criteria.--In determining which qualifying 
    advanced energy projects to certify under this section, the 
    Secretary--
            ``(A) shall take into consideration only those projects 
        where there is a reasonable expectation of commercial 
        viability, and
            ``(B) shall take into consideration which projects--
                ``(i) will provide the greatest domestic job creation 
            (both direct and indirect) during the credit period,
                ``(ii) will provide the greatest net impact in avoiding 
            or reducing air pollutants or anthropogenic emissions of 
            greenhouse gases,
                ``(iii) have the greatest potential for technological 
            innovation and commercial deployment,
                ``(iv) have the lowest levelized cost of generated or 
            stored energy, or of measured reduction in energy 
            consumption or greenhouse gas emission (based on costs of 
            the full supply chain), and
                ``(v) have the shortest project time from certification 
            to completion.
        ``(4) Review and redistribution.--
            ``(A) Review.--Not later than 4 years after the date of 
        enactment of this section, the Secretary shall review the 
        credits allocated under this section as of such date.
            ``(B) Redistribution.--The Secretary may reallocate credits 
        awarded under this section if the Secretary determines that--
                ``(i) there is an insufficient quantity of qualifying 
            applications for certification pending at the time of the 
            review, or
                ``(ii) any certification made pursuant to paragraph (2) 
            has been revoked pursuant to paragraph (2)(B) because the 
            project subject to the certification has been delayed as a 
            result of third party opposition or litigation to the 
            proposed project.
            ``(C) Reallocation.--If the Secretary determines that 
        credits under this section are available for reallocation 
        pursuant to the requirements set forth in paragraph (2), the 
        Secretary is authorized to conduct an additional program for 
        applications for certification.
        ``(5) Disclosure of allocations.--The Secretary shall, upon 
    making a certification under this subsection, publicly disclose the 
    identity of the applicant and the amount of the credit with respect 
    to such applicant.
    ``(e) Denial of Double Benefit.--A credit shall not be allowed 
under this section for any qualified investment for which a credit is 
allowed under section 48, 48A, or 48B.''.
    (c) Conforming Amendments.--
        (1) Section 49(a)(1)(C) is amended by striking ``and'' at the 
    end of clause (iii), by striking the period at the end of clause 
    (iv) and inserting ``, and'', and by adding after clause (iv) the 
    following new clause:
                ``(v) the basis of any property which is part of a 
            qualifying advanced energy project under section 48C.''.
        (2) The table of sections for subpart E of part IV of 
    subchapter A of chapter 1 is amended by inserting after the item 
    relating to section 48B the following new item:
``48C. Qualifying advanced energy project credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, under 
rules similar to the rules of section 48(m) of the Internal Revenue 
Code of 1986 (as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990).

                  Subtitle E--Economic Recovery Tools

SEC. 1401. RECOVERY ZONE BONDS.

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

                    ``PART III--RECOVERY ZONE BONDS

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

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

    ``(a) Allocations.--
        ``(1) In general.--
            ``(A) General allocation.--The Secretary shall allocate the 
        national recovery zone economic development bond limitation and 
        the national recovery zone facility bond limitation among the 
        States in the proportion that each such State's 2008 State 
        employment decline bears to the aggregate of the 2008 State 
        employment declines for all of the States.
            ``(B) Minimum allocation.--The Secretary shall adjust the 
        allocations under subparagraph (A) for any calendar year for 
        each State to the extent necessary to ensure that no State 
        receives less than 0.9 percent of the national recovery zone 
        economic development bond limitation and 0.9 percent of the 
        national recovery zone facility bond limitation.
        ``(2) 2008 state employment decline.--For purposes of this 
    subsection, the term `2008 State employment decline' means, with 
    respect to any State, the excess (if any) of--
            ``(A) the number of individuals employed in such State 
        determined for December 2007, over
            ``(B) the number of individuals employed in such State 
        determined for December 2008.
        ``(3) Allocations by states.--
            ``(A) In general.--Each State with respect to which an 
        allocation is made under paragraph (1) shall reallocate such 
        allocation among the counties and large municipalities in such 
        State in the proportion to each such county's or municipality's 
        2008 employment decline bears to the aggregate of the 2008 
        employment declines for all the counties and municipalities in 
        such State. A county or municipality may waive any portion of 
        an allocation made under this subparagraph.
            ``(B) Large municipalities.--For purposes of subparagraph 
        (A), the term `large municipality' means a municipality with a 
        population of more than 100,000.
            ``(C) Determination of local employment declines.--For 
        purposes of this paragraph, the employment decline of any 
        municipality or county shall be determined in the same manner 
        as determining the State employment decline under paragraph 
        (2), except that in the case of a municipality any portion of 
        which is in a county, such portion shall be treated as part of 
        such municipality and not part of such county.
        ``(4) National limitations.--
            ``(A) Recovery zone economic development bonds.--There is a 
        national recovery zone economic development bond limitation of 
        $10,000,000,000.
            ``(B) Recovery zone facility bonds.--There is a national 
        recovery zone facility bond limitation of $15,000,000,000.
    ``(b) Recovery Zone.--For purposes of this part, the term `recovery 
zone' means--
        ``(1) any area designated by the issuer as having significant 
    poverty, unemployment, rate of home foreclosures, or general 
    distress,
        ``(2) any area designated by the issuer as economically 
    distressed by reason of the closure or realignment of a military 
    installation pursuant to the Defense Base Closure and Realignment 
    Act of 1990, and
        ``(3) any area for which a designation as an empowerment zone 
    or renewal community is in effect.

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

    ``(a) In General.--In the case of a recovery zone economic 
development bond--
        ``(1) such bond shall be treated as a qualified bond for 
    purposes of section 6431, and
        ``(2) subsection (b) of such section shall be applied by 
    substituting `45 percent' for `35 percent'.
    ``(b) Recovery Zone Economic Development Bond.--
        ``(1) In general.--For purposes of this section, the term 
    `recovery zone economic development bond' means any build America 
    bond (as defined in section 54AA(d)) issued before January 1, 2011, 
    as part of issue if--
            ``(A) 100 percent of the excess of--
                ``(i) the available project proceeds (as defined in 
            section 54A) of such issue, over
                ``(ii) the amounts in a reasonably required reserve 
            (within the meaning of section 150(a)(3)) with respect to 
            such issue,
        are to be used for one or more qualified economic development 
        purposes, and
            ``(B) the issuer designates such bond for purposes of this 
        section.
        ``(2) Limitation on amount of bonds designated.--The maximum 
    aggregate face amount of bonds which may be designated by any 
    issuer under paragraph (1) shall not exceed the amount of the 
    recovery zone economic development bond limitation allocated to 
    such issuer under section 1400U-1.
    ``(c) Qualified Economic Development Purpose.--For purposes of this 
section, the term `qualified economic development purpose' means 
expenditures for purposes of promoting development or other economic 
activity in a recovery zone, including--
        ``(1) capital expenditures paid or incurred with respect to 
    property located in such zone,
        ``(2) expenditures for public infrastructure and construction 
    of public facilities, and
        ``(3) expenditures for job training and educational programs.

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

    ``(a) In General.--For purposes of part IV of subchapter B 
(relating to tax exemption requirements for State and local bonds), the 
term `exempt facility bond' includes any recovery zone facility bond.
    ``(b) Recovery Zone Facility Bond.--
        ``(1) In general.--For purposes of this section, the term 
    `recovery zone facility bond' means any bond issued as part of an 
    issue if--
            ``(A) 95 percent or more of the net proceeds (as defined in 
        section 150(a)(3)) of such issue are to be used for recovery 
        zone property,
            ``(B) such bond is issued before January 1, 2011, and
            ``(C) the issuer designates such bond for purposes of this 
        section.
        ``(2) Limitation on amount of bonds designated.--The maximum 
    aggregate face amount of bonds which may be designated by any 
    issuer under paragraph (1) shall not exceed the amount of recovery 
    zone facility bond limitation allocated to such issuer under 
    section 1400U-1.
    ``(c) Recovery Zone Property.--For purposes of this section--
        ``(1) In general.--The term `recovery zone property' means any 
    property to which section 168 applies (or would apply but for 
    section 179) if--
            ``(A) such property was constructed, reconstructed, 
        renovated, or acquired by purchase (as defined in section 
        179(d)(2)) by the taxpayer after the date on which the 
        designation of the recovery zone took effect,
            ``(B) the original use of which in the recovery zone 
        commences with the taxpayer, and
            ``(C) substantially all of the use of which is in the 
        recovery zone and is in the active conduct of a qualified 
        business by the taxpayer in such zone.
        ``(2) Qualified business.--The term `qualified business' means 
    any trade or business except that--
            ``(A) the rental to others of real property located in a 
        recovery zone shall be treated as a qualified business only if 
        the property is not residential rental property (as defined in 
        section 168(e)(2)), and
            ``(B) such term shall not include any trade or business 
        consisting of the operation of any facility described in 
        section 144(c)(6)(B).
        ``(3) Special rules for substantial renovations and sale-
    leaseback.--Rules similar 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. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS.

    (a) In General.--Section 7871 is amended by adding at the end the 
following new subsection:
    ``(f) Tribal Economic Development Bonds.--
        ``(1) Allocation of limitation.--
            ``(A) In general.--The Secretary shall allocate the 
        national tribal economic development bond limitation among the 
        Indian tribal governments in such manner as the Secretary, in 
        consultation with the Secretary of the Interior, determines 
        appropriate.
            ``(B) National limitation.--There is a national tribal 
        economic development bond limitation of $2,000,000,000.
        ``(2) Bonds treated as exempt from tax.--In the case of a 
    tribal economic development bond--
            ``(A) notwithstanding subsection (c), such bond shall be 
        treated for purposes of this title in the same manner as if 
        such bond were issued by a State,
            ``(B) the Indian tribal government issuing such bond and 
        any instrumentality of such Indian tribal government shall be 
        treated as a State for purposes of section 141, and
            ``(C) section 146 shall not apply.
        ``(3) Tribal economic development bond.--
            ``(A) In general.--For purposes of this section, the term 
        `tribal economic development bond' means any bond issued by an 
        Indian tribal government--
                ``(i) the interest on which would be exempt from tax 
            under section 103 if issued by a State or local government, 
            and
                ``(ii) which is designated by the Indian tribal 
            government as a tribal economic development bond for 
            purposes of this subsection.
            ``(B) Exceptions.--Such term shall not include any bond 
        issued as part of an issue if any portion of the proceeds of 
        such issue are used to finance--
                ``(i) any portion of a building in which class II or 
            class III gaming (as defined in section 4 of the Indian 
            Gaming Regulatory Act) is conducted or housed or any other 
            property actually used in the conduct of such gaming, or
                ``(ii) any facility located outside the Indian 
            reservation (as defined in section 168(j)(6)).
            ``(C) Limitation on amount of bonds designated.--The 
        maximum aggregate face amount of bonds which may be designated 
        by any Indian tribal government under subparagraph (A) shall 
        not exceed the amount of national tribal economic development 
        bond limitation allocated to such government under paragraph 
        (1).''.
    (b) Study.--The Secretary of the Treasury, or the Secretary's 
delegate, shall conduct a study of the effects of the amendment made by 
subsection (a). Not later than 1 year after the date of the enactment 
of this Act, the Secretary of the Treasury, or the Secretary's 
delegate, shall report to Congress on the results of the study 
conducted under this paragraph, including the Secretary's 
recommendations regarding such amendment.
    (c) Effective Date.--The amendment made by subsection (a) shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 1403. INCREASE IN NEW MARKETS TAX CREDIT.

    (a) In General.--Section 45D(f)(1) is amended--
        (1) by striking ``and'' at the end of subparagraph (C),
        (2) by striking ``, 2007, 2008, and 2009.'' in subparagraph 
    (D), and inserting ``and 2007,'', and
        (3) by adding at the end the following new subparagraphs:
            ``(E) $5,000,000,000 for 2008, and
            ``(F) $5,000,000,000 for 2009.''.
    (b) Special Rule for Allocation of Increased 2008 Limitation.--The 
amount of the increase in the new markets tax credit limitation for 
calendar year 2008 by reason of the amendments made by subsection (a) 
shall be allocated in accordance with section 45D(f)(2) of the Internal 
Revenue Code of 1986 to qualified community development entities (as 
defined in section 45D(c) of such Code) which--
        (1) submitted an allocation application with respect to 
    calendar year 2008, and
        (2)(A) did not receive an allocation for such calendar year, or
        (B) received an allocation for such calendar year in an amount 
    less than the amount requested in the allocation application.

SEC. 1404. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME 
              HOUSING GRANTS.

    Subsection (i) of section 42 is amended by adding at the end the 
following new paragraph:
        ``(9) Coordination with low-income housing grants.--
            ``(A) Reduction in state housing credit ceiling for low-
        income housing grants received in 2009.--For purposes of this 
        section, the amounts described in clauses (i) through (iv) of 
        subsection (h)(3)(C) with respect to any State for 2009 shall 
        each be reduced by so much of such amount as is taken into 
        account in determining the amount of any grant to such State 
        under section 1602 of the American Recovery and Reinvestment 
        Tax Act of 2009.
            ``(B) Special rule for basis.--Basis of a qualified low-
        income building shall not be reduced by the amount of any grant 
        described in subparagraph (A).''.

               Subtitle F--Infrastructure Financing Tools

          PART I--IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS

SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT INTEREST 
              EXPENSE OF FINANCIAL INSTITUTIONS.

    (a) In General.--Subsection (b) of section 265 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 which is issued by the qualified 
                borrower with respect to which such portion relates).

                ``(iv) Qualified financing issue.--For purposes of this 
            subparagraph, the term `qualified financing issue' means 
            any composite, pooled, or other conduit financing issue the 
            proceeds of which are used directly or indirectly to make 
            or finance loans to 1 or more ultimate borrowers each of 
            whom is a qualified borrower.
                ``(v) Qualified portion.--For purposes of this 
            subparagraph, the term `qualified portion' means that 
            portion of the proceeds which are used with respect to each 
            qualified borrower under the issue.
                ``(vi) Qualified borrower.--For purposes of this 
            subparagraph, the term `qualified borrower' means a 
            borrower which is a State or political subdivision thereof 
            or an organization described in section 501(c)(3) and 
            exempt from taxation under section 501(a).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after December 31, 2008.

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

    (a) Interest on Private Activity Bonds Issued During 2009 and 2010 
Not Treated as Tax Preference Item.--Subparagraph (C) of section 
57(a)(5) is amended by adding at the end a new clause:
                ``(vi) Exception for bonds issued in 2009 and 2010.--

                    ``(I) In general.--For purposes of clause (i), the 
                term `private activity bond' shall not include any bond 
                issued after December 31, 2008, and before January 1, 
                2011.
                    ``(II) Treatment of refunding bonds.--For purposes 
                of subclause (I), a refunding bond (whether a current 
                or advance refunding) shall be treated as issued on the 
                date of the issuance of the refunded bond (or in the 
                case of a series of refundings, the original bond).
                    ``(III) Exception for certain refunding bonds.--
                Subclause (II) shall not apply to any refunding bond 
                which is issued to refund any bond which was issued 
                after December 31, 2003, and before January 1, 2009.''.

    (b) No Adjustment to Adjusted Current Earnings for Interest on Tax-
Exempt Bonds Issued During 2009 and 2010.--Subparagraph (B) of section 
56(g)(4) is amended by adding at the end the following new clause:
                ``(iv) Tax exempt interest on bonds issued in 2009 and 
            2010.--

                    ``(I) In general.--Clause (i) shall not apply in 
                the case of any interest on a bond issued after 
                December 31, 2008, and before January 1, 2011.
                    ``(II) Treatment of refunding bonds.--For purposes 
                of subclause (I), a refunding bond (whether a current 
                or advance refunding) shall be treated as issued on the 
                date of the issuance of the refunded bond (or in the 
                case of a series of refundings, the original bond).
                    ``(III) Exception for certain refunding bonds.--
                Subclause (II) shall not apply to any refunding bond 
                which is issued to refund any bond which was issued 
                after December 31, 2003, and before January 1, 2009.''.

    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2008.

SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY BONDS.

    (a) In General.--Paragraph (1) of section 142(i) is amended by 
striking ``operate at speeds in excess of'' and inserting ``be capable 
of attaining a maximum speed in excess of''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after the date of the enactment of this Act.

    PART II--DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT 
                              CONTRACTORS

SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT 
              CONTRACTORS.

    Subsection (b) of section 511 of the Tax Increase Prevention and 
Reconciliation Act of 2005 is amended by striking ``December 31, 2010'' 
and inserting ``December 31, 2011''.

                 PART III--TAX CREDIT BONDS FOR SCHOOLS

SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS.

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

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

    ``(a) Qualified School Construction Bond.--For purposes of this 
subchapter, the term `qualified school construction bond' means any 
bond issued as part of an issue if--
        ``(1) 100 percent of the available project proceeds of such 
    issue are to be used for the construction, rehabilitation, or 
    repair of a public school facility or for the acquisition of land 
    on which such a facility is to be constructed with part of the 
    proceeds of such issue,
        ``(2) the bond is issued by a State or local government within 
    the jurisdiction of which such school is located, and
        ``(3) the issuer designates such bond for purposes of this 
    section.
    ``(b) Limitation on Amount of Bonds Designated.--The maximum 
aggregate face amount of bonds issued during any calendar year which 
may be designated under subsection (a) by any issuer shall not exceed 
the limitation amount allocated under subsection (d) for such calendar 
year to such issuer.
    ``(c) National Limitation on Amount of Bonds Designated.--There is 
a national qualified school construction bond limitation for each 
calendar year. Such limitation is--
        ``(1) $11,000,000,000 for 2009,
        ``(2) $11,000,000,000 for 2010, and
        ``(3) except as provided in subsection (e), zero after 2010.
    ``(d) Allocation of Limitation.--
        ``(1) Allocation among states.--Except as provided in paragraph 
    (2)(C), the limitation applicable under subsection (c) for any 
    calendar year shall be allocated by the Secretary among the States 
    in proportion to the respective amounts each such State is eligible 
    to receive under section 1124 of the Elementary and Secondary 
    Education Act of 1965 (20 U.S.C. 6333) for the most recent fiscal 
    year ending before such calendar year. The limitation amount 
    allocated to a State under the preceding sentence shall be 
    allocated by the State to issuers within such State.
        ``(2) 40 percent of limitation allocated among largest school 
    districts.--
            ``(A) In general.--40 percent of the limitation applicable 
        under subsection (c) for any calendar year shall be allocated 
        under subparagraph (B) by the Secretary among local educational 
        agencies which are large local educational agencies for such 
        year.
            ``(B) Allocation formula.--The amount to be allocated under 
        subparagraph (A) for any calendar year shall be allocated among 
        large local educational agencies in proportion to the 
        respective amounts each such agency received under section 1124 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6333) for the most recent fiscal year ending before such 
        calendar year.
            ``(C) Reduction in state allocation.--The allocation to any 
        State under paragraph (1) shall be reduced by the aggregate 
        amount of the allocations under this paragraph to large local 
        educational agencies within such State.
            ``(D) Allocation of unused limitation to state.--The amount 
        allocated under this paragraph to a large local educational 
        agency for any calendar year may be reallocated by such agency 
        to the State in which such agency is located for such calendar 
        year. Any amount reallocated to a State under the preceding 
        sentence may be allocated as provided in paragraph (1).
            ``(E) Large local educational agency.--For purposes of this 
        paragraph, the term `large local educational agency' means, 
        with respect to a calendar year, any local educational agency 
        if such agency is--
                ``(i) among the 100 local educational agencies with the 
            largest numbers of children aged 5 through 17 from families 
            living below the poverty level, as determined by the 
            Secretary using the most recent data available from the 
            Department of Commerce that are satisfactory to the 
            Secretary, or
                ``(ii) 1 of not more than 25 local educational agencies 
            (other than those described in clause (i)) that the 
            Secretary of Education determines (based on the most recent 
            data available satisfactory to the Secretary) are in 
            particular need of assistance, based on a low level of 
            resources for school construction, a high level of 
            enrollment growth, or such other factors as the Secretary 
            deems appropriate.
        ``(3) Allocations to certain possessions.--The amount to be 
    allocated under paragraph (1) to any possession of the United 
    States other than Puerto Rico shall be the amount which would have 
    been allocated if all allocations under paragraph (1) were made on 
    the basis of respective populations of individuals below the 
    poverty line (as defined by the Office of Management and Budget). 
    In making other allocations, the amount to be allocated under 
    paragraph (1) shall be reduced by the aggregate amount allocated 
    under this paragraph to possessions of the United States.
        ``(4) Allocations for indian schools.--In addition to the 
    amounts otherwise allocated under this subsection, $200,000,000 for 
    calendar year 2009, and $200,000,000 for calendar year 2010, shall 
    be allocated by the Secretary of the Interior for purposes of the 
    construction, rehabilitation, and repair of schools funded by the 
    Bureau of Indian Affairs. In the case of amounts allocated under 
    the preceding sentence, Indian tribal governments (as defined in 
    section 7701(a)(40)) shall be treated as qualified issuers for 
    purposes of this subchapter.
    ``(e) Carryover of Unused Limitation.--If for any calendar year--
        ``(1) the amount allocated under subsection (d) to any State, 
    exceeds
        ``(2) the amount of bonds issued during such year which are 
    designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State for the 
following calendar year shall be increased by the amount of such 
excess. A similar rule shall apply to the amounts allocated under 
subsection (d)(4).''.
    (b) Conforming Amendments.--
        (1) Paragraph (1) of section 54A(d) is amended by striking 
    ``or'' at the end of subparagraph (C), by inserting ``or'' at the 
    end of subparagraph (D), and by inserting after subparagraph (D) 
    the following new subparagraph:
            ``(E) a qualified school construction bond,''.
        (2) Subparagraph (C) of section 54A(d)(2) is amended by 
    striking ``and'' at the end of clause (iii), by striking the period 
    at the end of clause (iv) and inserting ``, and'', and by adding at 
    the end the following new clause:
                ``(v) in the case of a qualified school construction 
            bond, a purpose specified in section 54F(a)(1).''.
        (3) The table of sections for subpart I of part IV of 
    subchapter A of chapter 1 is amended by adding at the end the 
    following new item:
``Sec. 54F. Qualified school construction bonds.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY BONDS.

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

                      PART IV--BUILD AMERICA BONDS

SEC. 1531. BUILD AMERICA BONDS.

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

                    ``Subpart J--Build America Bonds

``Sec. 54AA. Build America bonds.

``SEC. 54AA. BUILD AMERICA BONDS.

    ``(a) In General.--If a taxpayer holds a build America bond on one 
or more interest payment dates of the bond during any taxable year, 
there shall be allowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to the sum of the credits 
determined under subsection (b) with respect to such dates.
    ``(b) Amount of Credit.--The amount of the credit determined under 
this subsection with respect to any interest payment date for a build 
America bond is 35 percent of the amount of interest payable by the 
issuer with respect to such date .
    ``(c) Limitation Based on Amount of Tax.--
        ``(1) In general.--The credit allowed under subsection (a) for 
    any taxable year shall not exceed the excess of--
            ``(A) the sum of the regular tax liability (as defined in 
        section 26(b)) plus the tax imposed by section 55, over
            ``(B) the sum of the credits allowable under this part 
        (other than subpart C and this subpart).
        ``(2) Carryover of unused credit.--If the credit allowable 
    under subsection (a) exceeds the limitation imposed by paragraph 
    (1) for such taxable year, such excess shall be carried to the 
    succeeding taxable year and added to the credit allowable under 
    subsection (a) for such taxable year (determined before the 
    application of paragraph (1) for such succeeding taxable year).
    ``(d) Build America Bond.--
        ``(1) In general.--For purposes of this section, the term 
    `build America bond' means any obligation (other than a private 
    activity bond) if--
            ``(A) the interest on such obligation would (but for this 
        section) be excludable from gross income under section 103,
            ``(B) such obligation is issued before January 1, 2011, and
            ``(C) the issuer makes an irrevocable election to have this 
        section apply.
        ``(2) Applicable rules.--For purposes of applying paragraph 
    (1)--
            ``(A) for purposes of section 149(b), a build America bond 
        shall not be treated as federally guaranteed by reason of the 
        credit allowed under subsection (a) or section 6431,
            ``(B) for purposes of section 148, the yield on a build 
        America bond shall be determined without regard to the credit 
        allowed under subsection (a), and
            ``(C) a bond shall not be treated as a build America bond 
        if the issue price has more than a de minimis amount 
        (determined under rules similar to the rules of section 
        1273(a)(3)) of premium over the stated principal amount of the 
        bond.
    ``(e) Interest Payment Date.--For purposes of this section, the 
term `interest payment date' means any date on which the holder of 
record of the build America bond is entitled to a payment of interest 
under such bond.
    ``(f) Special Rules.--
        ``(1) Interest on build america bonds includible in gross 
    income for federal income tax purposes.--For purposes of this 
    title, interest on any build America bond shall be includible in 
    gross income.
        ``(2) Application of certain rules.--Rules similar to the rules 
    of subsections (f), (g), (h), and (i) of section 54A shall apply 
    for purposes of the credit allowed under subsection (a).
    ``(g) Special Rule for Qualified Bonds Issued Before 2011.--In the 
case of a qualified bond issued before January 1, 2011--
        ``(1) Issuer allowed refundable credit.--In lieu of any credit 
    allowed under this section with respect to such bond, the issuer of 
    such bond shall be allowed a credit as provided in section 6431.
        ``(2) Qualified bond.--For purposes of this subsection, the 
    term `qualified bond' means any build America bond issued as part 
    of an issue if--
            ``(A) 100 percent of the excess of--
                ``(i) the available project proceeds (as defined in 
            section 54A) of such issue, over
                ``(ii) the amounts in a reasonably required reserve 
            (within the meaning of section 150(a)(3)) with respect to 
            such issue,
        are to be used for capital expenditures, and
            ``(B) the issuer makes an irrevocable election to have this 
        subsection apply.
    ``(h) Regulations.--The Secretary may prescribe such regulations 
and other guidance as may be necessary or appropriate to carry out this 
section and section 6431.''.
    (b) Credit for Qualified Bonds Issued Before 2011.--Subchapter B of 
chapter 65 is amended by adding at the end the following new section:

``SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER.

    ``(a) In General.--In the case of a qualified bond issued before 
January 1, 2011, the issuer of such bond shall be allowed a credit with 
respect to each interest payment under such bond which shall be payable 
by the Secretary as provided in subsection (b).
    ``(b) Payment of Credit.--The Secretary shall pay 
(contemporaneously with each interest payment date under such bond) to 
the issuer of such bond (or to any person who makes such interest 
payments on behalf of the issuer) 35 percent of the interest payable 
under such bond on such date.
    ``(c) Application of Arbitrage Rules.--For purposes of section 148, 
the yield on a qualified bond shall be reduced by the credit allowed 
under this section.
    ``(d) Interest Payment Date.--For purposes of this subsection, the 
term `interest payment date' means each date on which interest is 
payable by the issuer under the terms of the bond.
    ``(e) Qualified Bond.--For purposes of this subsection, the term 
`qualified bond' has the meaning given such term in section 54AA(g).''.
    (c) Conforming Amendments.--
        (1) Section 1324(b)(2) of title 31, United States Code, is 
    amended by striking ``or 6428'' and inserting ``6428, or 6431,''.
        (2) Section 54A(c)(1)(B) is amended by striking ``subpart C'' 
    and inserting ``subparts C and J''.
        (3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are each 
    amended by striking ``and I'' and inserting ``, I, and J''.
        (4) Section 6211(b)(4)(A) is amended by striking ``and 6428'' 
    and inserting ``6428, and 6431''.
        (5) Section 6401(b)(1) is amended by striking ``and I'' and 
    inserting ``I, and J''.
        (6) The table of subparts for part IV of subchapter A of 
    chapter 1 is amended by adding at the end the following new item:

                  ``subpart j. build america bonds.''.

        (7) The table of section for subchapter B of chapter 65 is 
    amended by adding at the end the following new item:
``Sec. 6431. Credit for qualified bonds allowed to issuer.''.
    (d) Transitional Coordination With State Law.--Except as otherwise 
provided by a State after the date of the enactment of this Act, the 
interest on any build America bond (as defined in section 54AA of the 
Internal Revenue Code of 1986, as added by this section) and the amount 
of any credit determined under such section with respect to such bond 
shall be treated for purposes of the income tax laws of such State as 
being exempt from Federal income tax.
    (e) Effective Date.--The amendments made by this section shall 
apply to obligations issued after the date of the enactment of this 
Act.

PART V--REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT 
                              BOND CREDITS

SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX 
              CREDIT BOND CREDITS.

    (a) In General.--Part I of subchapter M of chapter 1 is amended by 
inserting after section 853 the following new section:

``SEC. 853A. CREDITS FROM TAX CREDIT BONDS ALLOWED TO SHAREHOLDERS.

    ``(a) General Rule.--A regulated investment company--
        ``(1) which holds (directly or indirectly) one or more tax 
    credit bonds on one or more applicable dates during the taxable 
    year, and
        ``(2) which meets the requirements of section 852(a) for the 
    taxable year,
may elect the application of this section with respect to credits 
allowable to the investment company during such taxable year with 
respect to such bonds.
    ``(b) Effect of Election.--If the election provided in subsection 
(a) is in effect for any taxable year--
        ``(1) the regulated investment company shall not be allowed any 
    credits to which subsection (a) applies for such taxable year,
        ``(2) the regulated investment company shall--
            ``(A) include in gross income (as interest) for such 
        taxable year an amount equal to the amount that such investment 
        company would have included in gross income with respect to 
        such credits if this section did not apply, and
            ``(B) increase the amount of the dividends paid deduction 
        for such taxable year by the amount of such income, and
        ``(3) each shareholder of such investment company shall--
            ``(A) include in gross income an amount equal to such 
        shareholder's proportionate share of the interest income 
        attributable to such credits, and
            ``(B) be allowed the shareholder's proportionate share of 
        such credits against the tax imposed by this chapter.
    ``(c) Notice to Shareholders.--For purposes of subsection (b)(3), 
the shareholder's proportionate share of--
        ``(1) credits described in subsection (a), and
        ``(2) gross income in respect of such credits,
shall not exceed the amounts so designated by the regulated investment 
company in a written notice mailed to its shareholders not later than 
60 days after the close of its taxable year.
    ``(d) Manner of Making Election and Notifying Shareholders.--The 
election provided in subsection (a) and the notice to shareholders 
required by subsection (c) shall be made in such manner as the 
Secretary may prescribe.
    ``(e) Definitions and Special Rules.--
        ``(1) Definitions.--For purposes of this subsection--
            ``(A) Tax credit bond.--The term `tax credit bond' means--
                ``(i) a qualified tax credit bond (as defined in 
            section 54A(d)),
                ``(ii) a build America bond (as defined in section 
            54AA(d)), and
                ``(iii) any bond for which a credit is allowable under 
            subpart H of part IV of subchapter A of this chapter.
            ``(B) Applicable date.--The term `applicable date' means--
                ``(i) in the case of a qualified tax credit bond or a 
            bond described in subparagraph (A)(iii), any credit 
            allowance date (as defined in section 54A(e)(1)), and
                ``(ii) in the case of a build America bond (as defined 
            in section 54AA(d)), any interest payment date (as defined 
            in section 54AA(e)).
        ``(2) Stripped tax credit bonds.--If the ownership of a tax 
    credit bond is separated from the credit with respect to such bond, 
    subsection (a) shall be applied by reference to the instruments 
    evidencing the entitlement to the credit rather than the tax credit 
    bond.
    ``(f) Regulations, etc.--The Secretary shall prescribe such 
regulations or other guidance as may be necessary or appropriate to 
carry out the purposes of this section, including methods for 
determining a shareholder's proportionate share of credits.''.
    (b) Conforming Amendments.--
        (1) Section 54(l) is amended by striking paragraph (4) and by 
    redesignating paragraphs (5) and (6) as paragraphs (4) and (5), 
    respectively.
        (2) Section 54A(h) is amended to read as follows:
    ``(h) Bonds Held by Real Estate Investment Trusts.--If any 
qualified tax credit bond is held by a real estate investment trust, 
the credit determined under subsection (a) shall be allowed to 
beneficiaries of such trust (and any gross income included under 
subsection (f) with respect to such credit shall be distributed to such 
beneficiaries) under procedures prescribed by the Secretary.''.
        (3) The table of sections for part I of subchapter M of chapter 
    1 is amended by inserting after the item relating to section 853 
    the following new item:
``Sec. 853A. Credits from tax credit bonds allowed to shareholders.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

                      Subtitle G--Other Provisions

SEC. 1601. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED 
              WITH CERTAIN TAX-FAVORED BONDS.

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

SEC. 1602. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN LIEU OF 
              LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR 2009.

    (a) In General.--The Secretary of the Treasury shall make a grant 
to the housing credit agency of each State in an amount equal to such 
State's low-income housing grant election amount.
    (b) Low-Income Housing Grant Election Amount.--For purposes of this 
section, the term ``low-income housing grant election amount'' means, 
with respect to any State, such amount as the 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.

SEC. 1603. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS.

    (a) In General.--Upon application, the Secretary of the Treasury 
shall, subject to the requirements of this section, provide a grant to 
each person who places in service specified energy property to 
reimburse such person for a portion of the expense of such property as 
provided in subsection (b). No grant shall be made under this section 
with respect to any property unless such property--
        (1) is placed in service during 2009 or 2010, or
        (2) is placed in service after 2010 and before the credit 
    termination date with respect to such property, but only if the 
    construction of such property began during 2009 or 2010.
    (b) Grant Amount.--
        (1) In general.--The amount of the grant under subsection (a) 
    with respect to any specified energy property shall be the 
    applicable percentage of the basis of such property.
        (2) Applicable percentage.--For purposes of paragraph (1), the 
    term ``applicable percentage'' means--
            (A) 30 percent in the case of any property described in 
        paragraphs (1) through (4) of subsection (d), and
            (B) 10 percent in the case of any other property.
        (3) Dollar limitations.--In the case of property described in 
    paragraph (2), (6), or (7) of subsection (d), the amount of any 
    grant under this section with respect to such property shall not 
    exceed the limitation described in section 48(c)(1)(B), 
    48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986, 
    respectively, with respect to such property.
    (c) Time for Payment of Grant.--The Secretary of the Treasury shall 
make payment of any grant under subsection (a) during the 60-day period 
beginning on the later of--
        (1) the date of the application for such grant, or
        (2) the date the specified energy property for which the grant 
    is being made is placed in service.
    (d) Specified Energy Property.--For purposes of this section, the 
term ``specified energy property'' means any of the following:
        (1) Qualified facilities.--Any qualified property (as defined 
    in section 48(a)(5)(D) of the Internal Revenue Code of 1986) which 
    is part of a qualified facility (within the meaning of section 45 
    of such Code) described in paragraph (1), (2), (3), (4), (6), (7), 
    (9), or (11) of section 45(d) of such Code.
        (2) Qualified fuel cell property.--Any qualified fuel cell 
    property (as defined in section 48(c)(1) of such Code).
        (3) Solar property.--Any property described in clause (i) or 
    (ii) of section 48(a)(3)(A) of such Code.
        (4) Qualified small wind energy property.--Any qualified small 
    wind energy property (as defined in section 48(c)(4) of such Code).
        (5) Geothermal property.--Any property described in clause 
    (iii) of section 48(a)(3)(A) of such Code.
        (6) Qualified microturbine property.--Any qualified 
    microturbine property (as defined in section 48(c)(2) of such 
    Code).
        (7) Combined heat and power system property.--Any combined heat 
    and power system property (as defined in section 48(c)(3) of such 
    Code).
        (8) Geothermal heat pump property.--Any property described in 
    clause (vii) of section 48(a)(3)(A) of such Code.
Such term shall not include any property unless depreciation (or 
amortization in lieu of depreciation) is allowable with respect to such 
property.
    (e) Credit Termination Date.--For purposes of this section, the 
term ``credit termination date'' means--
        (1) in the case of any specified energy property which is part 
    of a facility described in paragraph (1) of section 45(d) of the 
    Internal Revenue Code of 1986, January 1, 2013,
        (2) in the case of any specified energy property which is part 
    of a facility described in paragraph (2), (3), (4), (6), (7), (9), 
    or (11) of section 45(d) of such Code, January 1, 2014, and
        (3) in the case of any specified energy property described in 
    section 48 of such Code, January 1, 2017.
In the case of any property which is described in paragraph (3) and 
also in another paragraph of this subsection, paragraph (3) shall apply 
with respect to such property.
    (f) Application of Certain Rules.--In making grants under this 
section, the Secretary of the Treasury shall apply rules similar to the 
rules of section 50 of the Internal Revenue Code of 1986. In applying 
such rules, if the property is disposed of, or otherwise ceases to be 
specified energy property, the Secretary of the Treasury shall provide 
for the recapture of the appropriate percentage of the grant amount in 
such manner as the Secretary of the Treasury determines appropriate.
    (g) Exception for Certain Non-Taxpayers.--The Secretary of the 
Treasury shall not make any grant under this section to--
        (1) any Federal, State, or local government (or any political 
    subdivision, agency, or instrumentality thereof),
        (2) any organization described in section 501(c) of the 
    Internal Revenue Code of 1986 and exempt from tax under section 
    501(a) of such Code,
        (3) any entity referred to in paragraph (4) of section 54(j) of 
    such Code, or
        (4) any partnership or other pass-thru entity any partner (or 
    other holder of an equity or profits interest) of which is 
    described in paragraph (1), (2) or (3).
    (h) Definitions.--Terms used in this section which are also used in 
section 45 or 48 of the Internal Revenue Code of 1986 shall have the 
same meaning for purposes of this section as when used in such section 
45 or 48. Any reference in this section to the Secretary of the 
Treasury shall be treated as including the Secretary's delegate.
    (i) Appropriations.--There is hereby appropriated to the Secretary 
of the Treasury such sums as may be necessary to carry out this 
section.
    (j) Termination.--The Secretary of the Treasury shall not make any 
grant to any person under this section unless the application of such 
person for such grant is received before October 1, 2011.

SEC. 1604. INCREASE IN PUBLIC DEBT LIMIT.

    Subsection (b) of section 3101 of title 31, United States Code, is 
amended by striking out the dollar limitation contained in such 
subsection and inserting ``$12,104,000,000,000''.

 Subtitle H--Prohibition on Collection of Certain Payments Made Under 
          the Continued Dumping and Subsidy Offset Act of 2000

SEC. 1701. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE UNDER THE 
              CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000.

    (a) In General.--Notwithstanding any other provision of law, 
neither the Secretary of Homeland Security nor any other person may--
        (1) require repayment of, or attempt in any other way to 
    recoup, any payments described in subsection (b); or
        (2) offset any past, current, or future distributions of 
    antidumping or countervailing duties assessed with respect to 
    imports from countries that are not parties to the North American 
    Free Trade Agreement in an attempt to recoup any payments described 
    in subsection (b).
    (b) Payments Described.--Payments described in this subsection are 
payments of antidumping or countervailing duties made pursuant to the 
Continued Dumping and Subsidy Offset Act of 2000 (section 754 of the 
Tariff Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title 
VII of the Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat. 
154))) that were--
        (1) assessed and paid on imports of goods from countries that 
    are parties to the North American Free Trade Agreement; and
        (2) distributed on or after January 1, 2001, and before January 
    1, 2006.
    (c) Payment of Funds Collected or Withheld.--Not later than the 
date that is 60 days after the date of the enactment of this Act, the 
Secretary of Homeland Security shall--
        (1) refund any repayments, or any other recoupment, of payments 
    described in subsection (b); and
        (2) fully distribute any antidumping or countervailing duties 
    that the U.S. Customs and Border Protection is withholding as an 
    offset as described in subsection (a)(2).
    (d) Limitation.--Nothing in this section shall be construed to 
prevent the Secretary of Homeland Security, or any other person, from 
requiring repayment of, or attempting to otherwise recoup, any payments 
described in subsection (b) as a result of--
        (1) a finding of false statements or other misconduct by a 
    recipient of such a payment; or
        (2) the reliquidation of an entry with respect to which such a 
    payment was made.

                Subtitle I--Trade Adjustment Assistance

SEC. 1800. SHORT TITLE.

    This subtitle may be cited as the ``Trade and Globalization 
Adjustment Assistance Act of 2009''.

            PART I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

   Subpart A--Trade Adjustment Assistance for Service Sector Workers

SEC. 1801. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICE SECTOR 
              AND PUBLIC AGENCY WORKERS; SHIFTS IN PRODUCTION.

    (a) Definitions.--Section 247 of the Trade Act of 1974 (19 U.S.C. 
2319) is amended--
        (1) in paragraph (1)--
            (A) by striking ``or appropriate subdivision of a firm''; 
        and
            (B) by striking ``or subdivision'';
        (2) in paragraph (2), by striking ``employment--'' and all that 
    follows and inserting ``employment, has been totally or partially 
    separated from such employment.'';
        (3) by inserting after paragraph (2) the following:
        ``(3) Subject to section 222(d)(5), the term `firm' means--
            ``(A) a firm, including an agricultural firm, service 
        sector firm, or public agency; or
            ``(B) an appropriate subdivision thereof.'';
        (4) by inserting after paragraph (6) the following:
        ``(7) The term `public agency' means a department or agency of 
    a State or local government or of the Federal Government, or a 
    subdivision thereof.'';
        (5) in paragraph (11), by striking ``, or in a subdivision of 
    which,''; and
        (6) by adding at the end the following:
        ``(18) The term `service sector firm' means a firm engaged in 
    the business of supplying services.''.
    (b) Group Eligibility Requirements.--Section 222 of the Trade Act 
of 1974 (19 U.S.C. 2272) is amended--
        (1) in subsection (a)(2)--
            (A) by amending subparagraph (A)(ii) to read as follows:
        ``(ii)(I) imports of articles or services like or directly 
    competitive with articles produced or services supplied by such 
    firm have increased;
        ``(II) imports of articles like or directly competitive with 
    articles--
            ``(aa) into which one or more component parts produced by 
        such firm are directly incorporated, or
            ``(bb) which are produced directly using services supplied 
        by such firm,
    have increased; or
        ``(III) imports of articles directly incorporating one or more 
    component parts produced outside the United States that are like or 
    directly competitive with imports of articles incorporating one or 
    more component parts produced by such firm have increased; and''; 
    and
            (B) by amending subparagraph (B) to read as follows:
        ``(B)(i)(I) there has been a shift by such workers' firm to a 
    foreign country in the production of articles or the supply of 
    services like or directly competitive with articles which are 
    produced or services which are supplied by such firm; or
        ``(II) such workers' firm has acquired from a foreign country 
    articles or services that are like or directly competitive with 
    articles which are produced or services which are supplied by such 
    firm; and
        ``(ii) the shift described in clause (i)(I) or the acquisition 
    of articles or services described in clause (i)(II) contributed 
    importantly to such workers' separation or threat of separation.'';
        (2) by redesignating subsections (b) and (c) as subsections (c) 
    and (d), respectively; and
        (3) by inserting after subsection (a) the following:
    ``(b) Adversely Affected Workers in Public Agencies.--A group of 
workers in a public agency shall be certified by the Secretary as 
eligible to apply for adjustment assistance under this chapter pursuant 
to a petition filed under section 221 if the Secretary determines 
that--
        ``(1) a significant number or proportion of the workers in the 
    public agency have become totally or partially separated, or are 
    threatened to become totally or partially separated;
        ``(2) the public agency has acquired from a foreign country 
    services like or directly competitive with services which are 
    supplied by such agency; and
        ``(3) the acquisition of services described in paragraph (2) 
    contributed importantly to such workers' separation or threat of 
    separation.''.
    (c) Basis for Secretary's Determinations.--Section 222 of the Trade 
Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding 
at the end the following:
    ``(e) Basis for Secretary's Determinations.--
        ``(1) In general.--The Secretary shall, in determining whether 
    to certify a group of workers under section 223, obtain from the 
    workers' firm, or a customer of the workers' firm, information the 
    Secretary determines to be necessary to make the certification, 
    through questionnaires and in such other manner as the Secretary 
    determines appropriate.
        ``(2) Additional information.--The Secretary may seek 
    additional information to determine whether to certify a group of 
    workers under subsection (a), (b), or (c)--
            ``(A) by contacting--
                ``(i) officials or employees of the workers' firm;
                ``(ii) officials of customers of the workers' firm;
                ``(iii) officials of certified or recognized unions or 
            other duly authorized representatives of the group of 
            workers; or
                ``(iv) one-stop operators or one-stop partners (as 
            defined in section 101 of the Workforce Investment Act of 
            1998 (29 U.S.C. 2801)); or
            ``(B) by using other available sources of information.
        ``(3) Verification of information.--
            ``(A) Certification.--The Secretary shall require a firm or 
        customer to certify--
                ``(i) all information obtained under paragraph (1) from 
            the firm or customer (as the case may be) through 
            questionnaires; and
                ``(ii) all other information obtained under paragraph 
            (1) from the firm or customer (as the case may be) on which 
            the Secretary relies in making a determination under 
            section 223, unless the Secretary has a reasonable basis 
            for determining that such information is accurate and 
            complete without being certified.
            ``(B) Use of subpoenas.--The Secretary shall require the 
        workers' firm or a customer of the workers' firm to provide 
        information requested by the Secretary under paragraph (1) by 
        subpoena pursuant to section 249 if the firm or customer (as 
        the case may be) fails to provide the information within 20 
        days after the date of the Secretary's request, unless the firm 
        or customer (as the case may be) demonstrates to the 
        satisfaction of the Secretary that the firm or customer (as the 
        case may be) will provide the information within a reasonable 
        period of time.
            ``(C) Protection of confidential information.--The 
        Secretary may not release information obtained under paragraph 
        (1) that the Secretary considers to be confidential business 
        information unless the firm or customer (as the case may be) 
        submitting the confidential business information had notice, at 
        the time of submission, that the information would be released 
        by the Secretary, or the firm or customer (as the case may be) 
        subsequently consents to the release of the information. 
        Nothing in this subparagraph shall be construed to prohibit the 
        Secretary from providing such confidential business information 
        to a court in camera or to another party under a protective 
        order issued by a court.''.
    (d) Penalties.--Section 244 of the Trade Act of 1974 (19 U.S.C. 
2316) is amended to read as follows:

``SEC. 244. PENALTIES.

    ``Any person who--
        ``(1) makes a false statement of a material fact knowing it to 
    be false, or knowingly fails to disclose a material fact, for the 
    purpose of obtaining or increasing for that person or for any other 
    person any payment authorized to be furnished under this chapter or 
    pursuant to an agreement under section 239, or
        ``(2) makes a false statement of a material fact knowing it to 
    be false, or knowingly fails to disclose a material fact, when 
    providing information to the Secretary during an investigation of a 
    petition under section 221,
shall be imprisoned for not more than one year, or fined under title 
18, United States Code, or both.''.
    (e) Conforming Amendments.--
        (1) Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a)) 
    is amended--
            (A) in paragraph (1)--
                (i) in the matter preceding subparagraph (A)--

                    (I) by striking ``Secretary'' and inserting 
                ``Secretary of Labor''; and
                    (II) by striking ``or subdivision'' and inserting 
                ``(as defined in section 247)''; and

                (ii) in subparagraph (A), by striking ``(including 
            workers in an agricultural firm or subdivision of any 
            agricultural firm)'';
            (B) in paragraph (2)(A), by striking ``rapid response 
        assistance'' and inserting ``rapid response activities''; and
            (C) in paragraph (3), by inserting ``and on the website of 
        the Department of Labor'' after ``Federal Register''.
        (2) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as 
    amended, is further amended--
            (A) by striking ``(including workers in any agricultural 
        firm or subdivision of an agricultural firm)'' each place it 
        appears;
            (B) in subsection (a)--
                (i) in paragraph (1), by striking ``, or an appropriate 
            subdivision of the firm,''; and
                (ii) in paragraph (2), by striking ``or subdivision'' 
            each place it appears;
            (C) in subsection (c) (as redesignated)--
                (i) in paragraph (2)--

                    (I) by striking ``(or subdivision)'' each place it 
                appears;
                    (II) by inserting ``or service'' after ``the 
                article''; and
                    (III) by striking ``(c) (3)'' and inserting ``(d) 
                (3)''; and

                (ii) in paragraph (3), by striking ``(or subdivision)'' 
            each place it appears; and
            (D) in subsection (d) (as redesignated)--
                (i) by striking ``For purposes'' and inserting 
            ``Definitions.--For purposes'';
                (ii) in paragraph (2), by striking ``, or appropriate 
            subdivision of a firm,'' each place it appears;
                (iii) by amending paragraph (3) to read as follows:
        ``(3) Downstream producer.--
            ``(A) In general.--The term `downstream producer' means a 
        firm that performs additional, value-added production processes 
        or services directly for another firm for articles or services 
        with respect to which a group of workers in such other firm has 
        been certified under subsection (a).
            ``(B) Value-added production processes or services.--For 
        purposes of subparagraph (A), value-added production processes 
        or services include final assembly, finishing, testing, 
        packaging, or maintenance or transportation services.'';
                (iv) in paragraph (4)--

                    (I) by striking ``(or subdivision)''; and
                    (II) by inserting ``, or services, used in the 
                production of articles or in the supply of services, as 
                the case may be,'' after ``for articles''; and

                (v) by adding at the end the following:
        ``(5) Reference to firm.--For purposes of subsection (a), the 
    term `firm' does not include a public agency.''.
        (3) Section 231(a)(2) of the Trade Act of 1974 (19 U.S.C. 
    2291(a)(2)) is amended--
            (A) in the matter preceding subparagraph (A), by striking 
        ``or subdivision of a firm''; and
            (B) in subparagraph (C), by striking ``or subdivision''.

SEC. 1802. SEPARATE BASIS FOR CERTIFICATION.

    Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended, 
is further amended by adding at the end the following:
    ``(f) Firms Identified by the International Trade Commission.--
Notwithstanding any other provision of this chapter, a group of workers 
covered by a petition filed under section 221 shall be certified under 
subsection (a) as eligible to apply for adjustment assistance under 
this chapter if--
        ``(1) the workers' firm is publicly identified by name by the 
    International Trade Commission as a member of a domestic industry 
    in an investigation resulting in--
            ``(A) an affirmative determination of serious injury or 
        threat thereof under section 202(b)(1);
            ``(B) an affirmative determination of market disruption or 
        threat thereof under section 421(b)(1); or
            ``(C) an affirmative final determination of material injury 
        or threat thereof under section 705(b)(1)(A) or 735(b)(1)(A) of 
        the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 
        1673d(b)(1)(A));
        ``(2) the petition is filed during the one-year period 
    beginning on the date on which--
            ``(A) a summary of the report submitted to the President by 
        the International Trade Commission under section 202(f)(1) with 
        respect to the affirmative determination described in paragraph 
        (1)(A) is published in the Federal Register under section 
        202(f)(3); or
            ``(B) notice of an affirmative determination described in 
        subparagraph (B) or (C) of paragraph (1) is published in the 
        Federal Register; and
        ``(3) the workers have become totally or partially separated 
    from the workers' firm within--
            ``(A) the one-year period described in paragraph (2); or
            ``(B) notwithstanding section 223(b), the one-year period 
        preceding the one-year period described in paragraph (2).''.

SEC. 1803. DETERMINATIONS BY SECRETARY OF LABOR.

    Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended--
        (1) in subsection (b), by striking ``or appropriate subdivision 
    of the firm before his application'' and all that follows and 
    inserting ``before the worker's application under section 231 
    occurred more than one year before the date of the petition on 
    which such certification was granted.'';
        (2) in subsection (c), by striking ``together with his 
    reasons'' and inserting ``and on the website of the Department of 
    Labor, together with the Secretary's reasons'';
        (3) in subsection (d)--
            (A) by striking ``or subdivision of the firm'' and all that 
        follows through ``he shall'' and inserting ``, that total or 
        partial separations from such firm are no longer attributable 
        to the conditions specified in section 222, the Secretary 
        shall''; and
            (B) by striking ``together with his reasons'' and inserting 
        ``and on the website of the Department of Labor, together with 
        the Secretary's reasons''; and
        (4) by adding at the end the following:
    ``(e) Standards for Investigations and Determinations.--
        ``(1) In general.--The Secretary shall establish standards, 
    including data requirements, for investigations of petitions filed 
    under section 221 and criteria for making determinations under 
    subsection (a).
        ``(2) Consultations.--Not less than 90 days before issuing a 
    final rule with respect to the standards required under paragraph 
    (1), the Secretary shall consult with the Committee on Finance of 
    the Senate and the Committee on Ways and Means of the House of 
    Representatives with respect to such rule.''.

SEC. 1804. MONITORING AND REPORTING RELATING TO SERVICE SECTOR.

    (a) In General.--Section 282 of the Trade Act of 1974 (19 U.S.C. 
2393) is amended--
        (1) in the heading, by striking ``system'' and inserting ``and 
    data collection'';
        (2) in the first sentence--
            (A) by striking ``The Secretary'' and inserting ``(a) 
        Monitoring Programs.--The Secretary'';
            (B) by inserting ``and services'' after ``imports of 
        articles'';
            (C) by inserting ``and domestic supply of services'' after 
        ``domestic production'';
            (D) by inserting ``or supplying services'' after 
        ``producing articles''; and
            (E) by inserting ``, or supply of services,'' after 
        ``changes in production''; and
        (3) by adding at the end the following:
    ``(b) Collection of Data and Reports on Service Sector.--
        ``(1) Secretary of labor.--Not later than 90 days after the 
    date of the enactment of this subsection, the Secretary of Labor 
    shall implement a system to collect data on adversely affected 
    workers employed in the service sector that includes the number of 
    workers by State and industry, and by the cause of the dislocation 
    of each worker, as identified in the certification.
        ``(2) Secretary of commerce.--Not later than 1 year after such 
    date of enactment, the Secretary of Commerce shall, in consultation 
    with the Secretary of Labor, conduct a study and submit to the 
    Committee on Finance of the Senate and the Committee on Ways and 
    Means of the House of Representatives a report on ways to improve 
    the timeliness and coverage of data on trade in services, including 
    methods to identify increased imports due to the relocation of 
    United States firms to foreign countries, and increased imports due 
    to United States firms acquiring services from firms in foreign 
    countries.''.
    (b) Clerical Amendment.--The table of contents of the Trade Act of 
1974 is amended by striking the item relating to section 282 and 
inserting the following:
``Sec. 282. Trade monitoring and data collection.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

    Subpart B--Industry Notifications Following Certain Affirmative 
                             Determinations

SEC. 1811. NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE DETERMINATIONS.

    (a) In General.--Section 224 of the Trade Act of 1974 (19 U.S.C. 
2274) is amended--
        (1) by amending the heading to read as follows:

``SEC. 224. STUDY AND NOTIFICATIONS REGARDING CERTAIN AFFIRMATIVE 
              DETERMINATIONS; INDUSTRY NOTIFICATION OF ASSISTANCE.'';

        (2) in subsection (a), by striking ``Whenever'' and inserting 
    ``Study of Domestic Industry.--Whenever'';
        (3) in subsection (b)--
            (A) by striking ``The report'' and inserting ``Report by 
        the Secretary.--The report''; and
            (B) by inserting ``and on the website of the Department of 
        Labor'' after ``Federal Register''; and
        (4) by adding at the end the following:
    ``(c) Notifications Following Affirmative Global Safeguard 
Determinations.--Upon making an affirmative determination under section 
202(b)(1), the Commission shall promptly notify the Secretary of Labor 
and the Secretary of Commerce and, in the case of a determination with 
respect to an agricultural commodity, the Secretary of Agriculture, of 
the determination.
    ``(d) Notifications Following Affirmative Bilateral or Plurilateral 
Safeguard Determinations.--
        ``(1) Notifications of determinations of market disruption.--
    Upon making an affirmative determination under section 421(b)(1), 
    the Commission shall promptly notify the Secretary of Labor and the 
    Secretary of Commerce and, in the case of a determination with 
    respect to an agricultural commodity, the Secretary of Agriculture, 
    of the determination.
        ``(2) Notifications regarding trade agreement safeguards.--Upon 
    making an affirmative determination in a proceeding initiated under 
    an applicable safeguard provision (other than a provision described 
    in paragraph (3)) that is enacted to implement a trade agreement to 
    which the United States is a party, the Commission shall promptly 
    notify the Secretary of Labor and the Secretary of Commerce and, in 
    the case of a determination with respect to an agricultural 
    commodity, the Secretary of Agriculture, of the determination.
        ``(3) Notifications regarding textile and apparel safeguards.--
    Upon making an affirmative determination in a proceeding initiated 
    under any safeguard provision relating to textile and apparel 
    articles that is enacted to implement a trade agreement to which 
    the United States is a party, the President shall promptly notify 
    the Secretary of Labor and the Secretary of Commerce of the 
    determination.
    ``(e) Notifications Following Certain Affirmative Determinations 
Under Title Vii of the Tariff Act of 1930.--Upon making an affirmative 
determination under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff 
Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)), the 
Commission shall promptly notify the Secretary of Labor and the 
Secretary of Commerce and, in the case of a determination with respect 
to an agricultural commodity, the Secretary of Agriculture, of the 
determination.
    ``(f) Industry Notification of Assistance.--Upon receiving a 
notification of a determination under subsection (c), (d), or (e) with 
respect to a domestic industry--
        ``(1) the Secretary of Labor shall--
            ``(A) notify the representatives of the domestic industry 
        affected by the determination, firms publicly identified by 
        name during the course of the proceeding relating to the 
        determination, and any certified or recognized union or, to the 
        extent practicable, other duly authorized representative of 
        workers employed by such representatives of the domestic 
        industry, of--
                ``(i) the allowances, training, employment services, 
            and other benefits available under this chapter;
                ``(ii) the manner in which to file a petition and apply 
            for such benefits; and
                ``(iii) the availability of assistance in filing such 
            petitions;
            ``(B) notify the Governor of each State in which one or 
        more firms in the industry described in subparagraph (A) are 
        located of the Commission's determination and the identity of 
        the firms; and
            ``(C) upon request, provide any assistance that is 
        necessary to file a petition under section 221;
        ``(2) the Secretary of Commerce shall--
            ``(A) notify the representatives of the domestic industry 
        affected by the determination and any firms publicly identified 
        by name during the course of the proceeding relating to the 
        determination of--
                ``(i) the benefits available under chapter 3;
                ``(ii) the manner in which to file a petition and apply 
            for such benefits; and
                ``(iii) the availability of assistance in filing such 
            petitions; and
            ``(B) upon request, provide any assistance that is 
        necessary to file a petition under section 251; and
        ``(3) in the case of an affirmative determination based upon 
    imports of an agricultural commodity, the Secretary of Agriculture 
    shall--
            ``(A) notify representatives of the domestic industry 
        affected by the determination and any agricultural commodity 
        producers publicly identified by name during the course of the 
        proceeding relating to the determination of--
                ``(i) the benefits available under chapter 6;
                ``(ii) the manner in which to file a petition and apply 
            for such benefits; and
                ``(iii) the availability of assistance in filing such 
            petitions; and
            ``(B) upon request, provide any assistance that is 
        necessary to file a petition under section 292.
    ``(g) Representatives of the Domestic Industry.--For purposes of 
subsection (f), the term `representatives of the domestic industry' 
means the persons that petitioned for relief in connection with--
        ``(1) a proceeding under section 202 or 421 of this Act;
        ``(2) a proceeding under section 702(b) or 732(b) of the Tariff 
    Act of 1930 (19 U.S.C. 1671d(b) and 1673d(b)); or
        ``(3) any safeguard investigation described in subsection 
    (d)(2) or (d)(3).''.
    (b) Clerical Amendment.--The table of contents of the Trade Act of 
1974 is amended by striking the item relating to section 224 and 
inserting the following:
``Sec. 224. Study and notifications regarding certain affirmative 
          determinations; industry notification of assistance.''.

SEC. 1812. NOTIFICATION TO SECRETARY OF COMMERCE.

    Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended by 
adding at the end the following:
    ``(c) Upon issuing a certification under section 223, the Secretary 
shall notify the Secretary of Commerce of the identity of each firm 
covered by the certification.''.

                      Subpart C--Program Benefits

SEC. 1821. QUALIFYING REQUIREMENTS FOR WORKERS.

    (a) In General.--Section 231(a)(5)(A)(ii) of the Trade Act of 1974 
(19 U.S.C. 2291 (a)(5)(A)(ii)) is amended--
        (1) by striking subclauses (I) and (II) and inserting the 
    following:
                ``(I) in the case of a worker whose most recent total 
            separation from adversely affected employment that meets 
            the requirements of paragraphs (1) and (2) occurs after the 
            date on which the Secretary issues a certification covering 
            the worker, the last day of the 26th week after such total 
            separation,
                ``(II) in the case of a worker whose most recent total 
            separation from adversely affected employment that meets 
            the requirements of paragraphs (1) and (2) occurs before 
            the date on which the Secretary issues a certification 
            covering the worker, the last day of the 26th week after 
            the date of such certification,'';
        (2) in subclause (III)--
            (A) by striking ``later of the dates specified in subclause 
        (I) or (II)'' and inserting ``date specified in subclause (I) 
        or (II), as the case may be''; and
            (B) by striking ``or'' at the end;
        (3) by redesignating subclause (IV) as subclause (V); and
        (4) by inserting after subclause (III) the following:
                ``(IV) in the case of a worker who fails to enroll by 
            the date required by subclause (I), (II), or (III), as the 
            case may be, due to the failure to provide the worker with 
            timely information regarding the date specified in such 
            subclause, the last day of a period determined by the 
            Secretary, or''.
    (b) Waivers of Training Requirements.--Section 231(c) of the Trade 
Act of 1974 (19 U.S.C. 2291(c)) is amended--
        (1) in paragraph (1)(B)--
            (A) by striking ``The worker possesses'' and inserting the 
        following:
                ``(i) In general.--The worker possesses''; and
            (B) by adding at the end the following:
                ``(ii) Marketable skills defined.--For purposes of 
            clause (i), the term `marketable skills' may include the 
            possession of a postgraduate degree from an institution of 
            higher education (as defined in section 102 of the Higher 
            Education Act of 1965 (20 U.S.C. 1002)) or an equivalent 
            institution, or the possession of an equivalent 
            postgraduate certification in a specialized field.'';
        (2) in paragraph (2)(A), by striking ``A waiver'' and inserting 
    ``Except as provided in paragraph (3)(B), a waiver''; and
        (3) in paragraph (3)--
            (A) in subparagraph (A), by striking ``Pursuant to an 
        agreement under section 239, the Secretary may authorize a'' 
        and inserting ``An agreement under section 239 shall authorize 
        a'';
            (B) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (C) by inserting after subparagraph (A) the following:
            ``(B) Review of waivers.--An agreement under section 239 
        shall require a cooperating State to review each waiver issued 
        by the State under subparagraph (A), (B), (D), (E), or (F) of 
        paragraph (1)--
                ``(i) 3 months after the date on which the State issues 
            the waiver; and
                ``(ii) on a monthly basis thereafter.''.
    (c) Conforming Amendments.--
        (1) Section 231 of the Trade Act of 1974 (19 U.S.C. 2291), as 
    amended, is further amended--
            (A) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``more than 60 days'' and all that follows 
        through ``section 221'' and inserting ``on or after the date of 
        such certification''; and
            (B) in subsection (b)--
                (i) by striking paragraph (2); and
                (ii) in paragraph (1)--

                    (I) by striking ``(1)'';
                    (II) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2), respectively;
                    (III) by redesignating clauses (i) and (ii) as 
                subparagraphs (A) and (B), respectively; and
                    (IV) by redesignating subclauses (I) and (II) as 
                clauses (i) and (ii), respectively.

        (2) Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is 
    amended--
            (A) by striking subsection (b); and
            (B) by redesignating subsections (c) through (g) as 
        subsections (b) through (f), respectively.

SEC. 1822. WEEKLY AMOUNTS.

    Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended--
        (1) in subsection (a)--
            (A) by striking ``subsections (b) and (c)'' and inserting 
        ``subsections (b), (c), and (d)'';
            (B) by striking ``total unemployment'' the first place it 
        appears and inserting ``unemployment''; and
            (C) in paragraph (2), by inserting before the period the 
        following: ``, except that in the case of an adversely affected 
        worker who is participating in training under this chapter, 
        such income shall not include earnings from work for such week 
        that are equal to or less than the most recent weekly benefit 
        amount of the unemployment insurance payable to the worker for 
        a week of total unemployment preceding the worker's first 
        exhaustion of unemployment insurance (as determined for 
        purposes of section 231(a)(3)(B))''; and
        (2) by adding at the end the following:
    ``(d) Election of Trade Readjustment Allowance or Unemployment 
Insurance.--Notwithstanding section 231(a)(3)(B), an adversely affected 
worker may elect to receive a trade readjustment allowance instead of 
unemployment insurance during any week with respect to which the 
worker--
        ``(1) is entitled to receive unemployment insurance as a result 
    of the establishment by the worker of a new benefit year under 
    State law, based in whole or in part upon part-time or short-term 
    employment in which the worker engaged after the worker's most 
    recent total separation from adversely affected employment; and
        ``(2) is otherwise entitled to a trade readjustment 
    allowance.''.

SEC. 1823. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; ALLOWANCES FOR 
              EXTENDED TRAINING AND BREAKS IN TRAINING.

    Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) is 
amended--
        (1) in paragraph (2), by inserting ``under paragraph (1)'' 
    after ``trade readjustment allowance''; and
        (2) in paragraph (3)--
            (A) in the matter preceding subparagraph (A)--
                (i) by striking ``training approved for him'' and 
            inserting ``a training program approved for the worker'';
                (ii) by striking ``52 additional weeks'' and inserting 
            ``78 additional weeks''; and
                (iii) by striking ``52-week'' and inserting ``91-
            week''; and
            (B) in the matter following subparagraph (B), by striking 
        ``52-week'' and inserting ``91-week''.

SEC. 1824. SPECIAL RULES FOR CALCULATION OF ELIGIBILITY PERIOD.

    Section 233 of the Trade Act of 1974 (19 U.S.C. 2293), as amended, 
is further amended by adding at the end the following:
    ``(g) Special Rule for Calculating Separation.--Notwithstanding any 
other provision of this chapter, any period during which a judicial or 
administrative appeal is pending with respect to the denial by the 
Secretary of a petition under section 223 shall not be counted for 
purposes of calculating the period of separation under subsection 
(a)(2).
    ``(h) Special Rule for Justifiable Cause.--If the Secretary 
determines that there is justifiable cause, the Secretary may extend 
the period during which trade readjustment allowances are payable to an 
adversely affected worker under paragraphs (2) and (3) of subsection 
(a) (but not the maximum amounts of such allowances that are payable 
under this section).
    ``(i) Special Rule With Respect to Military Service.--
        ``(1) In general.--Notwithstanding any other provision of this 
    chapter, the Secretary may waive any requirement of this chapter 
    that the Secretary determines is necessary to ensure that an 
    adversely affected worker who is a member of a reserve component of 
    the Armed Forces and serves a period of duty described in paragraph 
    (2) is eligible to receive a trade readjustment allowance, 
    training, and other benefits under this chapter in the same manner 
    and to the same extent as if the worker had not served the period 
    of duty.
        ``(2) Period of duty described.--An adversely affected worker 
    serves a period of duty described in this paragraph if, before 
    completing training under section 236, the worker--
            ``(A) serves on active duty for a period of more than 30 
        days under a call or order to active duty of more than 30 days; 
        or
            ``(B) in the case of a member of the Army National Guard of 
        the United States or Air National Guard of the United States, 
        performs full-time National Guard duty under section 502(f) of 
        title 32, United States Code, for 30 consecutive days or more 
        when authorized by the President or the Secretary of Defense 
        for the purpose of responding to a national emergency declared 
        by the President and supported by Federal funds.''.

SEC. 1825. APPLICATION OF STATE LAWS AND REGULATIONS ON GOOD CAUSE FOR 
              WAIVER OF TIME LIMITS OR LATE FILING OF CLAIMS.

    Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is amended--
        (1) by striking ``Except where inconsistent'' and inserting 
    ``(a) In General.--Except where inconsistent''; and
        (2) by adding at the end the following:
    ``(b) Special Rule With Respect to State Laws and Regulations on 
Good Cause for Waiver of Time Limits or Late Filing of Claims.--Any 
law, regulation, policy, or practice of a cooperating State that allows 
for a waiver for good cause of any time limitation relating to the 
administration of the State unemployment insurance law shall, in the 
administration of the program under this chapter by the State, apply to 
any time limitation with respect to an application for a trade 
readjustment allowance or enrollment in training under this chapter.''.

SEC. 1826. EMPLOYMENT AND CASE MANAGEMENT SERVICES.

    (a) In General.--Section 235 of the Trade Act of 1974 (19 U.S.C. 
2295) is amended to read as follows:

``SEC. 235. EMPLOYMENT AND CASE MANAGEMENT SERVICES.

    ``The Secretary shall make available, directly or through 
agreements with States under section 239, to adversely affected workers 
and adversely affected incumbent workers covered by a certification 
under subchapter A of this chapter the following employment and case 
management services:
        ``(1) Comprehensive and specialized assessment of skill levels 
    and service needs, including through--
            ``(A) diagnostic testing and use of other assessment tools; 
        and
            ``(B) in-depth interviewing and evaluation to identify 
        employment barriers and appropriate employment goals.
        ``(2) Development of an individual employment plan to identify 
    employment goals and objectives, and appropriate training to 
    achieve those goals and objectives.
        ``(3) Information on training available in local and regional 
    areas, information on individual counseling to determine which 
    training is suitable training, and information on how to apply for 
    such training.
        ``(4) Information on how to apply for financial aid, including 
    referring workers to educational opportunity centers described in 
    section 402F of the Higher Education Act of 1965 (20 U.S.C. 1070a-
    16), where applicable, and notifying workers that the workers may 
    request financial aid administrators at institutions of higher 
    education (as defined in section 102 of such Act (20 U.S.C. 1002)) 
    to use the administrators' discretion under section 479A of such 
    Act (20 U.S.C. 1087tt) to use current year income data, rather than 
    preceding year income data, for determining the amount of need of 
    the workers for Federal financial assistance under title IV of such 
    Act (20 U.S.C. 1070 et seq.).
        ``(5) Short-term prevocational services, including development 
    of learning skills, communications skills, interviewing skills, 
    punctuality, personal maintenance skills, and professional conduct 
    to prepare individuals for employment or training.
        ``(6) Individual career counseling, including job search and 
    placement counseling, during the period in which the individual is 
    receiving a trade adjustment allowance or training under this 
    chapter, and after receiving such training for purposes of job 
    placement.
        ``(7) Provision of employment statistics information, including 
    the provision of accurate information relating to local, regional, 
    and national labor market areas, including--
            ``(A) job vacancy listings in such labor market areas;
            ``(B) information on jobs skills necessary to obtain jobs 
        identified in job vacancy listings described in subparagraph 
        (A);
            ``(C) information relating to local occupations that are in 
        demand and earnings potential of such occupations; and
            ``(D) skills requirements for local occupations described 
        in subparagraph (C).
        ``(8) Information relating to the availability of supportive 
    services, including services relating to child care, 
    transportation, dependent care, housing assistance, and need-
    related payments that are necessary to enable an individual to 
    participate in training.''.
    (b) Clerical Amendment.--The table of contents of the Trade Act of 
1974 is amended by striking the item relating to section 235 and 
inserting the following:
``235. Employment and case management services.''.

SEC. 1827. ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT 
              SERVICES.

    (a) In General.--Part II of subchapter B of chapter 2 of title II 
of the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is amended by 
inserting after section 235 the following:

``SEC. 235A. FUNDING FOR ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND 
              CASE MANAGEMENT SERVICES.

    ``(a) Funding for Administrative Expenses and Employment and Case 
Management Services.--
        ``(1) In general.--In addition to any funds made available to a 
    State to carry out section 236 for a fiscal year, the State shall 
    receive for the fiscal year a payment in an amount that is equal to 
    15 percent of the amount of such funds.
        ``(2) Use of funds.--A State that receives a payment under 
    paragraph (1) shall--
            ``(A) use not more than \2/3\ of such payment for the 
        administration of the trade adjustment assistance for workers 
        program under this chapter, including for--
                ``(i) processing waivers of training requirements under 
            section 231;
                ``(ii) collecting, validating, and reporting data 
            required under this chapter; and
                ``(iii) providing reemployment trade adjustment 
            assistance under section 246; and
            ``(B) use not less than \1/3\ of such payment for 
        employment and case management services under section 235.
    ``(b) Additional Funding for Employment and Case Management 
Services.--
        ``(1) In general.--In addition to any funds made available to a 
    State to carry out section 236 and the payment under subsection 
    (a)(1) for a fiscal year, the Secretary shall provide to the State 
    for the fiscal year a payment in the amount of $350,000.
        ``(2) Use of funds.--A State that receives a payment under 
    paragraph (1) shall use such payment for the purpose of providing 
    employment and case management services under section 235.
        ``(3) Voluntary return of funds.--A State that receives a 
    payment under paragraph (1) may decline or otherwise return such 
    payment to the Secretary.''.
    (b) Clerical Amendment.--The table of contents of the Trade Act of 
1974 is amended by inserting after the item relating to section 235 the 
following:
``Sec. 235A. Funding for administrative expenses and employment and case 
          management services.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 1828. TRAINING FUNDING.

    (a) In General.--Section 236(a)(2) of the Trade Act of 1974 (19 
U.S.C. 2296(a)(2)) is amended to read as follows:
    ``(2)(A) The total amount of payments that may be made under 
paragraph (1) shall not exceed--
        ``(i) for each of the fiscal years 2009 and 2010, $575,000,000; 
    and
        ``(ii) for the period beginning October 1, 2010, and ending 
    December 31, 2010, $143,750,000.
    ``(B)(i) The Secretary shall, as soon as practicable after the 
beginning of each fiscal year, make an initial distribution of the 
funds made available to carry out this section, in accordance with the 
requirements of subparagraph (C).
    ``(ii) The Secretary shall ensure that not less than 90 percent of 
the funds made available to carry out this section for a fiscal year 
are distributed to the States by not later than July 15 of that fiscal 
year.
    ``(C)(i) In making the initial distribution of funds pursuant to 
subparagraph (B)(i) for a fiscal year, the Secretary shall hold in 
reserve 35 percent of the funds made available to carry out this 
section for that fiscal year for additional distributions during the 
remainder of the fiscal year.
    ``(ii) Subject to clause (iii), in determining how to apportion the 
initial distribution of funds pursuant to subparagraph (B)(i) in a 
fiscal year, the Secretary shall take into account, with respect to 
each State--
        ``(I) the trend in the number of workers covered by 
    certifications of eligibility under this chapter during the most 
    recent 4 consecutive calendar quarters for which data are 
    available;
        ``(II) the trend in the number of workers participating in 
    training under this section during the most recent 4 consecutive 
    calendar quarters for which data are available;
        ``(III) the number of workers estimated to be participating in 
    training under this section during the fiscal year;
        ``(IV) the amount of funding estimated to be necessary to 
    provide training approved under this section to such workers during 
    the fiscal year; and
        ``(V) such other factors as the Secretary considers appropriate 
    relating to the provision of training under this section.
    ``(iii) In no case may the amount of the initial distribution to a 
State pursuant to subparagraph (B)(i) in a fiscal year be less than 25 
percent of the initial distribution to the State in the preceding 
fiscal year.
    ``(D) The Secretary shall establish procedures for the distribution 
of the funds that remain available for the fiscal year after the 
initial distribution required under subparagraph (B)(i). Such 
procedures may include the distribution of funds pursuant to requests 
submitted by States in need of such funds.
    ``(E) If, during a fiscal year, the Secretary estimates that the 
amount of funds necessary to pay the costs of training approved under 
this section will exceed the dollar amount limitation specified in 
subparagraph (A), the Secretary shall decide how the amount of funds 
made available to carry out this section that have not been distributed 
at the time of the estimate will be apportioned among the States for 
the remainder of the fiscal year.''.
    (b) Determinations Regarding Training.--Section 236(a)(9) of the 
Trade Act of 1974 (19 U.S.C. 2296(a)(9)) is amended--
        (1) by striking ``The Secretary'' and inserting ``(A) Subject 
    to subparagraph (B), the Secretary''; and
        (2) by adding at the end the following:
    ``(B)(i) In determining under paragraph (1)(E) whether a worker is 
qualified to undertake and complete training, the Secretary may approve 
training for a period longer than the worker's period of eligibility 
for trade readjustment allowances under part I if the worker 
demonstrates a financial ability to complete the training after the 
expiration of the worker's period of eligibility for such trade 
readjustment allowances.
    ``(ii) In determining the reasonable cost of training under 
paragraph (1)(F) with respect to a worker, the Secretary may consider 
whether other public or private funds are reasonably available to the 
worker, except that the Secretary may not require a worker to obtain 
such funds as a condition of approval of training under paragraph 
(1).''.
    (c) Regulations.--Section 236 of the Trade Act of 1974 (19 U.S.C. 
2296) is amended by adding at the end the following:
    ``(g) Regulations With Respect to Apportionment of Training Funds 
to States.--
        ``(1) In general.--Not later than 1 year after the date of the 
    enactment of this subsection, the Secretary shall issue such 
    regulations as may be necessary to carry out the provisions of 
    subsection (a)(2).
        ``(2) Consultations.--The Secretary shall consult with the 
    Committee on Finance of the Senate and the Committee on Ways and 
    Means of the House of Representatives not less than 90 days before 
    issuing any regulation pursuant to paragraph (1).''.
    (d) Effective Date.--This section and the amendments made by this 
section shall take effect upon the expiration of the 90-day period 
beginning on the date of the enactment of this Act, except that--
        (1) subparagraph (A) of section 236(a)(2) of the Trade Act of 
    1974, as amended by subsection (a) of this section, shall take 
    effect on the date of the enactment of this Act; and
        (2) subparagraphs (B), (C), and (D) of such section 236(a)(2) 
    shall take effect on October 1, 2009.

SEC. 1829. PREREQUISITE EDUCATION; APPROVED TRAINING PROGRAMS.

    (a) In General.--Section 236(a)(5) of the Trade Act of 1974 (19 
U.S.C. 2296(a)(5)) is amended--
        (1) in subparagraph (A)--
            (A) by striking ``and'' at the end of clause (i);
            (B) by adding ``and'' at the end of clause (ii); and
            (C) by inserting after clause (ii) the following:
            ``(iii) apprenticeship programs registered under the Act of 
        August 16, 1937 (commonly known as the `National Apprenticeship 
        Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),'';
        (2) by redesignating subparagraphs (E) and (F) as subparagraphs 
    (F) and (G), respectively;
        (3) by inserting after subparagraph (D) the following:
        ``(E) any program of prerequisite education or coursework 
    required to enroll in training that may be approved under this 
    section,'';
        (4) in subparagraph (F)(ii), as redesignated by paragraph (2), 
    by striking ``and'' at the end;
        (5) in subparagraph (G), as redesignated by paragraph (2), by 
    striking the period at the end and inserting ``, and''; and
        (6) by adding at the end the following:
        ``(H) any training program or coursework at an accredited 
    institution of higher education (described in section 102 of the 
    Higher Education Act of 1965 (20 U.S.C. 1002)), including a 
    training program or coursework for the purpose of--
            ``(i) obtaining a degree or certification; or
            ``(ii) completing a degree or certification that the worker 
        had previously begun at an accredited institution of higher 
        education.
The Secretary may not limit approval of a training program under 
paragraph (1) to a program provided pursuant to title I of the 
Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).''.
    (b) Conforming Amendments.--Section 233 of the Trade Act of 1974 
(19 U.S.C. 2293) is amended--
        (1) in subsection (a)(2), by inserting ``prerequisite education 
    or'' after ``requires a program of''; and
        (2) in subsection (f) (as redesignated by section 1821(c) of 
    this subtitle), by inserting ``prerequisite education or'' after 
    ``includes a program of''.
    (c) Technical Corrections.--Section 236 of the Trade Act of 1974 
(19 U.S.C. 2296) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1), in the flush text, by striking ``his 
        behalf'' and inserting ``the worker's behalf''; and
            (B) in paragraph (3), by striking ``this paragraph (1)'' 
        and inserting ``paragraph (1)''; and
        (2) in subsection (b)(2), by striking ``, and'' and inserting a 
    period.

SEC. 1830. PRE-LAYOFF AND PART-TIME TRAINING.

    (a) Pre-Layoff Training.--
        (1) In general.--Section 236(a) of the Trade Act of 1974 (19 
    U.S.C. 2296(a)) is amended--
            (A) in paragraph (1), by inserting after ``determines'' the 
        following: ``, with respect to an adversely affected worker or 
        an adversely affected incumbent worker,'';
            (B) in paragraph (4)--
                (i) in subparagraphs (A) and (B), by inserting ``or an 
            adversely affected incumbent worker'' after ``an adversely 
            affected worker'' each place it appears; and
                (ii) in subparagraph (C), by inserting ``or adversely 
            affected incumbent worker'' after ``adversely affected 
            worker'' each place it appears;
            (C) in paragraph (5), in the matter preceding subparagraph 
        (A), by striking ``The training programs'' and inserting 
        ``Except as provided in paragraph (10), the training 
        programs'';
            (D) in paragraph (6)(B), by inserting ``or adversely 
        affected incumbent worker'' after ``adversely affected 
        worker'';
            (E) in paragraph (7)(B), by inserting ``or adversely 
        affected incumbent worker'' after ``adversely affected 
        worker''; and
            (F) by inserting after paragraph (9) the following:
    ``(10) In the case of an adversely affected incumbent worker, the 
Secretary may not approve--
        ``(A) on-the-job training under paragraph (5)(A)(i); or
        ``(B) customized training under paragraph (5)(A)(ii), unless 
    such training is for a position other than the worker's adversely 
    affected employment.
    ``(11) If the Secretary determines that an adversely affected 
incumbent worker for whom the Secretary approved training under this 
section is no longer threatened with a total or partial separation, the 
Secretary shall terminate the approval of such training.''.
        (2) Definitions.--Section 247 of the Trade Act of 1974 (19 
    U.S.C. 2319), as amended, is further amended by adding at the end 
    the following:
        ``(19) The term `adversely affected incumbent worker' means a 
    worker who--
            ``(A) is a member of a group of workers who have been 
        certified as eligible to apply for adjustment assistance under 
        subchapter A;
            ``(B) has not been totally or partially separated from 
        adversely affected employment; and
            ``(C) the Secretary determines, on an individual basis, is 
        threatened with total or partial separation.''.
    (b) Part-Time Training.--Section 236 of the Trade Act of 1974 (19 
U.S.C. 2296), as amended, is further amended by adding at the end the 
following:
    ``(h) Part-Time Training.--
        ``(1) In general.--The Secretary may approve full-time or part-
    time training for a worker under subsection (a).
        ``(2) Limitation.--Notwithstanding paragraph (1), a worker 
    participating in part-time training approved under subsection (a) 
    may not receive a trade readjustment allowance under section 
    231.''.

SEC. 1831. ON-THE-JOB TRAINING.

    (a) In General.--Section 236(c) of the Trade Act of 1974 (19 U.S.C. 
2296(c)) is amended--
        (1) by redesignating paragraphs (1) through (10) as 
    subparagraphs (A) through (J) and moving such subparagraphs 2 ems 
    to the right;
        (2) by striking ``(c) The Secretary shall'' and all that 
    follows through ``such costs,'' and inserting the following:
    ``(c) On-the-Job Training Requirements.--
        ``(1) In general.--The Secretary may approve on-the-job 
    training for any adversely affected worker if--
            ``(A) the worker meets the requirements for training to be 
        approved under subsection (a)(1);
            ``(B) the Secretary determines that on-the-job training--
                ``(i) can reasonably be expected to lead to suitable 
            employment with the employer offering the on-the-job 
            training;
                ``(ii) is compatible with the skills of the worker;
                ``(iii) includes a curriculum through which the worker 
            will gain the knowledge or skills to become proficient in 
            the job for which the worker is being trained; and
                ``(iv) can be measured by benchmarks that indicate that 
            the worker is gaining such knowledge or skills; and
            ``(C) the State determines that the on-the-job training 
        program meets the requirements of clauses (iii) and (iv) of 
        subparagraph (B).
        ``(2) Monthly payments.--The Secretary shall pay the costs of 
    on-the-job training approved under paragraph (1) in monthly 
    installments.
        ``(3) Contracts for on-the-job training.--
            ``(A) In general.--The Secretary shall ensure, in entering 
        into a contract with an employer to provide on-the-job training 
        to a worker under this subsection, that the skill requirements 
        of the job for which the worker is being trained, the academic 
        and occupational skill level of the worker, and the work 
        experience of the worker are taken into consideration.
            ``(B) Term of contract.--Training under any such contract 
        shall be limited to the period of time required for the worker 
        receiving on-the-job training to become proficient in the job 
        for which the worker is being trained, but may not exceed 104 
        weeks in any case.
        ``(4) Exclusion of certain employers.--The Secretary shall not 
    enter into a contract for on-the-job training with an employer that 
    exhibits a pattern of failing to provide workers receiving on-the-
    job training from the employer with--
            ``(A) continued, long-term employment as regular employees; 
        and
            ``(B) wages, benefits, and working conditions that are 
        equivalent to the wages, benefits, and working conditions 
        provided to regular employees who have worked a similar period 
        of time and are doing the same type of work as workers 
        receiving on-the-job training from the employer.
        ``(5) Labor standards.--The Secretary may pay the costs of on-
    the-job training,''; and
        (3) in paragraph (5), as redesignated--
            (A) in subparagraph (I), as redesignated by paragraph (1) 
        of this section, by striking ``paragraphs (1), (2), (3), (4), 
        (5), and (6)'' and inserting ``subparagraphs (A), (B), (C), 
        (D), (E), and (F)''; and
            (B) in subparagraph (J), as redesignated by paragraph (1) 
        of this section, by striking ``paragraph (8)'' and inserting 
        ``subparagraph (H)''.
    (b) Repeal of Preference for Training on the Job.--Section 
236(a)(1) of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is amended by 
striking the last sentence.

SEC. 1832. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PROGRAM BENEFITS 
              WHILE IN TRAINING.

    Section 236(d) of the Trade Act of 1974 (19 U.S.C. 2296(d)) is 
amended to read as follows:
    ``(d) Eligibility.--An adversely affected worker may not be 
determined to be ineligible or disqualified for unemployment insurance 
or program benefits under this subchapter--
        ``(1) because the worker--
            ``(A) is enrolled in training approved under subsection 
        (a);
            ``(B) left work--
                ``(i) that was not suitable employment in order to 
            enroll in such training; or
                ``(ii) that the worker engaged in on a temporary basis 
            during a break in such training or a delay in the 
            commencement of such training; or
            ``(C) left on-the-job training not later than 30 days after 
        commencing such training because the training did not meet the 
        requirements of subsection (c)(1)(B); or
        ``(2) because of the application to any such week in training 
    of the provisions of State law or Federal unemployment insurance 
    law relating to availability for work, active search for work, or 
    refusal to accept work.''.

SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES.

    (a) Job Search Allowances.--Section 237 of the Trade Act of 1974 
(19 U.S.C. 2297) is amended--
        (1) in subsection (a)(2)(C)(ii), by striking ``, unless the 
    worker received a waiver under section 231(c)''; and
        (2) in subsection (b)--
            (A) in paragraph (1), by striking ``90 percent of the cost 
        of'' and inserting ``all''; and
            (B) in paragraph (2), by striking ``$1,250'' and inserting 
        ``$1,500''.
    (b) Relocation Allowances.--Section 238 of the Trade Act of 1974 
(19 U.S.C. 2298) is amended--
        (1) in subsection (a)(2)(E)(ii), by striking ``, unless the 
    worker received a waiver under section 231(c)''; and
        (2) in subsection (b)--
            (A) in paragraph (1), by striking ``90 percent of the'' and 
        inserting ``all''; and
            (B) in paragraph (2), by striking ``$1,250'' and inserting 
        ``$1,500''.

      Subpart D--Reemployment Trade Adjustment Assistance Program

SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.

    (a) In General.--Section 246 of the Trade Act of 1974 (19 U.S.C. 
2318) is amended--
        (1) by amending the heading to read as follows:

``SEC. 246. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.'';

        (2) in subsection (a)--
            (A) in paragraph (1)--
                (i) by striking ``Not later than'' and all that follows 
            through ``2002, the Secretary'' and inserting ``The 
            Secretary''; and
                (ii) by striking ``an alternative trade adjustment 
            assistance program for older workers'' and inserting ``a 
            reemployment trade adjustment assistance program'';
            (B) in paragraph (2)--
                (i) in subparagraph (A)--

                    (I) in the matter preceding clause (i), by striking 
                ``for a period not to exceed 2 years'' and inserting 
                ``for the eligibility period under subparagraph (A) or 
                (B) of paragraph (4) (as the case may be)''; and
                    (II) by striking clauses (i) and (ii) and inserting 
                the following:

                ``(i) the wages received by the worker at the time of 
            separation; and
                ``(ii) the wages received by the worker from 
            reemployment.'';
                (ii) in subparagraph (B)--

                    (I) by striking ``for a period not to exceed 2 
                years'' and inserting ``for the eligibility period 
                under subparagraph (A) or (B) of paragraph (4) (as the 
                case may be)''; and
                    (II) by striking ``, as added by section 201 of the 
                Trade Act of 2002''; and

                (iii) by adding at the end the following:
            ``(C) Training and other services.--A worker described in 
        paragraph (3)(B) participating in the program established under 
        paragraph (1) is eligible to receive training approved under 
        section 236 and employment and case management services under 
        section 235.''; and
            (C) by striking paragraphs (3) through (5) and inserting 
        the following:
        ``(3) Eligibility.--
            ``(A) In general.--A group of workers certified under 
        subchapter A as eligible for adjustment assistance under 
        subchapter A is eligible for benefits described in paragraph 
        (2) under the program established under paragraph (1).
            ``(B) Individual eligibility.--A worker in a group of 
        workers described in subparagraph (A) may elect to receive 
        benefits described in paragraph (2) under the program 
        established under paragraph (1) if the worker--
                ``(i) is at least 50 years of age;
                ``(ii) earns not more than $55,000 each year in wages 
            from reemployment;
                ``(iii)(I) is employed on a full-time basis as defined 
            by the law of the State in which the worker is employed and 
            is not enrolled in a training program approved under 
            section 236; or
                ``(II) is employed at least 20 hours per week and is 
            enrolled in a training program approved under section 236; 
            and
                ``(iv) is not employed at the firm from which the 
            worker was separated.
        ``(4) Eligibility period for payments.--
            ``(A) Worker who has not received trade readjustment 
        allowance.--In the case of a worker described in paragraph 
        (3)(B) who has not received a trade readjustment allowance 
        under part I of subchapter B pursuant to the certification 
        described in paragraph (3)(A), the worker may receive benefits 
        described in paragraph (2) for a period not to exceed 2 years 
        beginning on the earlier of--
                ``(i) the date on which the worker exhausts all rights 
            to unemployment insurance based on the separation of the 
            worker from the adversely affected employment that is the 
            basis of the certification; or
                ``(ii) the date on which the worker obtains 
            reemployment described in paragraph (3)(B).
            ``(B) Worker who has received trade readjustment 
        allowance.--In the case of a worker described in paragraph 
        (3)(B) who has received a trade readjustment allowance under 
        part I of subchapter B pursuant to the certification described 
        in paragraph (3)(A), the worker may receive benefits described 
        in paragraph (2) for a period of 104 weeks beginning on the 
        date on which the worker obtains reemployment described in 
        paragraph (3)(B), reduced by the total number of weeks for 
        which the worker received such trade readjustment allowance.
        ``(5) Total amount of payments.--
            ``(A) In general.--The payments described in paragraph 
        (2)(A) made to a worker may not exceed--
                ``(i) $12,000 per worker during the eligibility period 
            under paragraph (4)(A); or
                ``(ii) the amount described in subparagraph (B) per 
            worker during the eligibility period under paragraph 
            (4)(B).
            ``(B) Amount described.--The amount described in this 
        subparagraph is the amount equal to the product of--
                ``(i) $12,000, and
                ``(ii) the ratio of--

                    ``(I) the total number of weeks in the eligibility 
                period under paragraph (4)(B) with respect to the 
                worker, to
                    ``(II) 104 weeks.

        ``(6) Calculation of amount of payments for certain workers.--
            ``(A) In general.--In the case of a worker described in 
        paragraph (3)(B)(iii)(II), paragraph (2)(A) shall be applied by 
        substituting the percentage described in subparagraph (B) for 
        `50 percent'.
            ``(B) Percentage described.--The percentage described in 
        this subparagraph is the percentage--
                ``(i) equal to \1/2\ of the ratio of--

                    ``(I) the number of weekly hours of employment of 
                the worker referred to in paragraph (3)(B)(iii)(II), to
                    ``(II) the number of weekly hours of employment of 
                the worker at the time of separation, but

                ``(ii) in no case more than 50 percent.
        ``(7) Limitation on other benefits.--A worker described in 
    paragraph (3)(B) may not receive a trade readjustment allowance 
    under part I of subchapter B pursuant to the certification 
    described in paragraph (3)(A) during any week for which the worker 
    receives a payment described in paragraph (2)(A).''; and
        (3) in subsection (b)(2), by striking ``subsection (a)(3)(B)'' 
    and inserting ``subsection (a)(3)''.
    (b) Extension of Program.--Section 246(b)(1) of the Trade Act of 
1974 (19 U.S.C. 2318(b)(1)) is amended by striking ``the date that is 5 
years'' and all that follows through the end period and inserting 
``December 31, 2010.''.
    (c) Clerical Amendment.--The table of contents of the Trade Act of 
1974 is amended by striking the item relating to section 246 and 
inserting the following:
``Sec. 246. Reemployment trade adjustment assistance program.''.

                        Subpart E--Other Matters

SEC. 1851. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

    (a) In General.--Subchapter C of chapter 2 of title II of the Trade 
Act of 1974 (19 U.S.C. 2311 et seq.) is amended by adding at the end 
the following:

``SEC. 249A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.

    ``(a) Establishment.--There is established in the Department of 
Labor an office to be known as the Office of Trade Adjustment 
Assistance (in this section referred to as the `Office').
    ``(b) Head of Office.--The head of the Office shall be an 
administrator, who shall report directly to the Deputy Assistant 
Secretary for Employment and Training.
    ``(c) Principal Functions.--The principal functions of the 
administrator of the Office shall be--
        ``(1) to oversee and implement the administration of trade 
    adjustment assistance program under this chapter; and
        ``(2) to carry out functions delegated to the Secretary of 
    Labor under this chapter, including--
            ``(A) making determinations under section 223;
            ``(B) providing information under section 225 about trade 
        adjustment assistance to workers and assisting such workers to 
        prepare petitions or applications for program benefits;
            ``(C) providing assistance to employers of groups of 
        workers that have filed petitions under section 221 in 
        submitting information required by the Secretary relating to 
        the petitions;
            ``(D) ensuring workers covered by a certification of 
        eligibility under subchapter A receive the employment and case 
        management services described in section 235;
            ``(E) ensuring that States fully comply with agreements 
        entered into under section 239;
            ``(F) advocating for workers applying for benefits 
        available under this chapter;
            ``(G) establishing and overseeing a hotline that workers, 
        employers, and other entities may call to obtain information 
        regarding eligibility criteria, procedural requirements, and 
        benefits available under this chapter; and
            ``(H) carrying out such other duties with respect to this 
        chapter as the Secretary specifies for purposes of this 
        section.
    ``(d) Administration.--
        ``(1) Designation.--The administrator shall designate an 
    employee of the Department of Labor with appropriate experience and 
    expertise to carry out the duties described in paragraph (2).
        ``(2) Duties.--The employee designated under paragraph (1) 
    shall--
            ``(A) receive complaints and requests for assistance 
        related to the trade adjustment assistance program under this 
        chapter;
            ``(B) resolve such complaints and requests for assistance, 
        in coordination with other employees of the Office;
            ``(C) compile basic information concerning such complaints 
        and requests for assistance; and
            ``(D) carry out such other duties with respect to this 
        chapter as the Secretary specifies for purposes of this 
        section.''.
    (b) Clerical Amendment.--The table of contents of the Trade Act of 
1974 is amended by inserting after the item relating to section 249 the 
following:
``Sec. 249A. Office of Trade Adjustment Assistance.''.

SEC. 1852. ACCOUNTABILITY OF STATE AGENCIES; COLLECTION AND PUBLICATION 
              OF PROGRAM DATA; AGREEMENTS WITH STATES.

    (a) In General.--Section 239(a) of the Trade Act of 1974 (19 U.S.C. 
2311(a)) is amended--
        (1) by amending clause (2) to read as follows: ``(2) in 
    accordance with subsection (f), shall make available to adversely 
    affected workers and adversely affected incumbent workers covered 
    by a certification under subchapter A the employment and case 
    management services described in section 235,''; and
        (2) by striking ``will'' each place it appears and inserting 
    ``shall''.
    (b) Form and Manner of Data.--Section 239 of the Trade Act of 1974 
(19 U.S.C. 2311) is amended--
        (1) by redesignating subsections (c) through (g) as subsections 
    (d) through (h), respectively; and
        (2) by inserting after subsection (b) the following:
    ``(c) Form and Manner of Data.--Each agreement under this 
subchapter shall--
        ``(1) provide the Secretary with the authority to collect any 
    data the Secretary determines necessary to meet the requirements of 
    this chapter; and
        ``(2) specify the form and manner in which any such data 
    requested by the Secretary shall be reported.''.
    (c) State Activities.--Section 239(g) of the Trade Act of 1974 (as 
redesignated) is amended--
        (1) in paragraph (3), by striking ``and'' at the end;
        (2) by amending paragraph (4) to read as follows:
        ``(4) perform outreach to, intake of, and orientation for 
    adversely affected workers and adversely affected incumbent workers 
    covered by a certification under subchapter A with respect to 
    assistance and benefits available under this chapter, and''; and
        (3) by adding at the end the following:
        ``(5) make employment and case management services described in 
    section 235 available to adversely affected workers and adversely 
    affected incumbent workers covered by a certification under 
    subchapter A and, if funds provided to carry out this chapter are 
    insufficient to make such services available, make arrangements to 
    make such services available through other Federal programs.''.
    (d) Reporting Requirement.--Section 239(h) of the Trade Act of 1974 
(as redesignated) is amended by striking ``1998.'' and inserting ``1998 
(29 U.S.C. 2822(b)) and a description of the State's rapid response 
activities under section 221(a)(2)(A).''.
    (e) Control Measures.--Section 239 of the Trade Act of 1974 (19 
U.S.C. 2311), as amended, is further amended by adding at the end the 
following:
    ``(i) Control Measures.--
        ``(1) In general.--The Secretary shall require each cooperating 
    State and cooperating State agency to implement effective control 
    measures and to effectively oversee the operation and 
    administration of the trade adjustment assistance program under 
    this chapter, including by means of monitoring the operation of 
    control measures to improve the accuracy and timeliness of the data 
    being collected and reported.
        ``(2) Definition.--For purposes of paragraph (1), the term 
    `control measures' means measures that--
            ``(A) are internal to a system used by a State to collect 
        data; and
            ``(B) are designed to ensure the accuracy and verifiability 
        of such data.
    ``(j) Data Reporting.--
        ``(1) In general.--Any agreement entered into under this 
    section shall require the cooperating State or cooperating State 
    agency to report to the Secretary on a quarterly basis 
    comprehensive performance accountability data, to consist of--
            ``(A) the core indicators of performance described in 
        paragraph (2)(A);
            ``(B) the additional indicators of performance described in 
        paragraph (2)(B), if any; and
            ``(C) a description of efforts made to improve outcomes for 
        workers under the trade adjustment assistance program.
        ``(2) Core indicators described.--
            ``(A) In general.--The core indicators of performance 
        described in this paragraph are--
                ``(i) the percentage of workers receiving benefits 
            under this chapter who are employed during the second 
            calendar quarter following the calendar quarter in which 
            the workers cease receiving such benefits;
                ``(ii) the percentage of such workers who are employed 
            in each of the third and fourth calendar quarters following 
            the calendar quarter in which the workers cease receiving 
            such benefits; and
                ``(iii) the earnings of such workers in each of the 
            third and fourth calendar quarters following the calendar 
            quarter in which the workers cease receiving such benefits.
            ``(B) Additional indicators.--The Secretary and a 
        cooperating State or cooperating State agency may agree upon 
        additional indicators of performance for the trade adjustment 
        assistance program under this chapter, as appropriate.
        ``(3) Standards with respect to reliability of data.--In 
    preparing the quarterly report required by paragraph (1), each 
    cooperating State or cooperating State agency shall establish 
    procedures that are consistent with guidelines to be issued by the 
    Secretary to ensure that the data reported are valid and 
    reliable.''.

SEC. 1853. VERIFICATION OF ELIGIBILITY FOR PROGRAM BENEFITS.

    Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended, 
is further amended by adding at the end the following:
    ``(k) Verification of Eligibility for Program Benefits.--
        ``(1) In general.--An agreement under this subchapter shall 
    provide that the State shall periodically redetermine that a worker 
    receiving benefits under this subchapter who is not a citizen or 
    national of the United States remains in a satisfactory immigration 
    status. Once satisfactory immigration status has been initially 
    verified through the immigration status verification system 
    described in section 1137(d) of the Social Security Act (42 U.S.C. 
    1320b-7(d)) for purposes of establishing a worker's eligibility for 
    unemployment compensation, the State shall reverify the worker's 
    immigration status if the documentation provided during initial 
    verification will expire during the period in which that worker is 
    potentially eligible to receive benefits under this subchapter. The 
    State shall conduct such redetermination in a timely manner, 
    utilizing the immigration status verification system described in 
    section 1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)).
        ``(2) Procedures.--The Secretary shall establish procedures to 
    ensure the uniform application by the States of the requirements of 
    this subsection.''.

SEC. 1854. COLLECTION OF DATA AND REPORTS; INFORMATION TO WORKERS.

    (a) In General.--Subchapter C of chapter 2 of title II of the Trade 
Act of 1974 (19 U.S.C. 2311 et seq.), as amended, is further amended by 
adding at the end the following:

``SEC. 249B. COLLECTION AND PUBLICATION OF DATA AND REPORTS; 
              INFORMATION TO WORKERS.

    ``(a) In General.--Not later than 180 days after the date of the 
enactment of this section, the Secretary shall implement a system to 
collect and report the data described in subsection (b), as well as any 
other information that the Secretary considers appropriate to 
effectively carry out this chapter.
    ``(b) Data to Be Included.--The system required under subsection 
(a) shall include collection of and reporting on the following data for 
each fiscal year:
        ``(1) Data on petitions filed, certified, and denied.--
            ``(A) The number of petitions filed, certified, and denied 
        under this chapter.
            ``(B) The number of workers covered by petitions filed, 
        certified, and denied.
            ``(C) The number of petitions, classified by--
                ``(i) the basis for certification, including increased 
            imports, shifts in production, and other bases of 
            eligibility; and
                ``(ii) congressional district of the United States.
            ``(D) The average time for processing such petitions.
        ``(2) Data on benefits received.--
            ``(A) The number of workers receiving benefits under this 
        chapter.
            ``(B) The number of workers receiving each type of benefit, 
        including training, trade readjustment allowances, employment 
        and case management services, and relocation and job search 
        allowances, and, to the extent feasible, credits for health 
        insurance costs under section 35 of the Internal Revenue Code 
        of 1986.
            ``(C) The average time during which such workers receive 
        each such type of benefit.
        ``(3) Data on training.--
            ``(A) The number of workers enrolled in training approved 
        under section 236, classified by major types of training, 
        including classroom training, training through distance 
        learning, on-the-job training, and customized training.
            ``(B) The number of workers enrolled in full-time training 
        and part-time training.
            ``(C) The average duration of training.
            ``(D) The number of training waivers granted under section 
        231(c), classified by type of waiver.
            ``(E) The number of workers who complete training and the 
        duration of such training.
            ``(F) The number of workers who do not complete training.
        ``(4) Data on outcomes.--
            ``(A) A summary of the quarterly reports required under 
        section 239(j).
            ``(B) The sectors in which workers are employed after 
        receiving benefits under this chapter.
        ``(5) Data on rapid response activities.--Whether rapid 
    response activities were provided with respect to each petition 
    filed under section 221.
    ``(c) Classification of Data.--To the extent possible, in 
collecting and reporting the data described in subsection (b), the 
Secretary shall classify the data by industry, State, and national 
totals.
    ``(d) Report.--Not later than December 15 of each year, the 
Secretary shall submit to the Committee on Finance of the Senate and 
the Committee on Ways and Means of the House of Representatives a 
report that includes--
        ``(1) a summary of the information collected under this section 
    for the preceding fiscal year;
        ``(2) information on the distribution of funds to each State 
    pursuant to section 236(a)(2); and
        ``(3) any recommendations of the Secretary with respect to 
    changes in eligibility requirements, benefits, or training funding 
    under this chapter based on the data collected under this section.
    ``(e) Availability of Data.--
        ``(1) In general.--The Secretary shall make available to the 
    public, by publishing on the website of the Department of Labor and 
    by other means, as appropriate--
            ``(A) the report required under subsection (d);
            ``(B) the data collected under this section, in a 
        searchable format; and
            ``(C) a list of cooperating States and cooperating State 
        agencies that failed to submit the data required by this 
        section to the Secretary in a timely manner.
        ``(2) Updates.--The Secretary shall update the data under 
    paragraph (1) on a quarterly basis.''.
    (b) Clerical Amendment.--The table of contents of the Trade Act of 
1974 is amended by inserting after the item relating to section 249A 
the following:
``Sec. 249B. Collection and publication of data and reports; information 
          to workers.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 1855. FRAUD AND RECOVERY OF OVERPAYMENTS.

    Section 243(a)(1) of the Trade Act of 1974 (19 U.S.C. 2315(a)(1)) 
is amended--
        (1) in the matter preceding subparagraph (A)--
            (A) by striking ``may waive'' and inserting ``shall 
        waive''; and
            (B) by striking ``, in accordance with guidelines 
        prescribed by the Secretary,''; and
        (2) in subparagraph (B), by striking ``would be contrary to 
    equity and good conscience'' and inserting ``would cause a 
    financial hardship for the individual (or the individual's 
    household, if applicable) when taking into consideration the income 
    and resources reasonably available to the individual (or household) 
    and other ordinary living expenses of the individual (or 
    household)''.

SEC. 1856. SENSE OF CONGRESS ON APPLICATION OF TRADE ADJUSTMENT 
              ASSISTANCE.

    (a) In General.--Chapter 5 of title II of the Trade Act of 1974 (19 
U.S.C. 2391 et seq.) is amended by adding at the end the following:

``SEC. 288. SENSE OF CONGRESS.

    ``It is the sense of Congress that the Secretaries of Labor, 
Commerce, and Agriculture should apply the provisions of chapter 2 
(relating to adjustment assistance for workers), chapter 3 (relating to 
adjustment assistance for firms), chapter 4 (relating to adjustment 
assistance for communities), and chapter 6 (relating to adjustment 
assistance for farmers), respectively, with the utmost regard for the 
interests of workers, firms, communities, and farmers petitioning for 
benefits under such chapters.''.
    (b) Clerical Amendment.--The table of contents of the Trade Act of 
1974 is amended by inserting after the item relating to section 287 the 
following:
``Sec. 288. Sense of Congress.''.

SEC. 1857. CONSULTATIONS IN PROMULGATION OF REGULATIONS.

    Section 248 of the Trade Act of 1974 (19 U.S.C. 2320) is amended--
        (1) by striking ``The Secretary shall'' and inserting the 
    following:
    ``(a) In General.--The Secretary shall''; and
        (2) by adding at the end the following:
    ``(b) Consultations.--Not later than 90 days before issuing a 
regulation under subsection (a), the Secretary shall consult with the 
Committee on Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives with respect to the regulation.''.

SEC. 1858. TECHNICAL CORRECTIONS.

    (a) Determinations by Secretary of Labor.--Section 223(c) of the 
Trade Act of 1974 (19 U.S.C. 2273(c)) is amended by striking ``his 
determination'' and inserting ``a determination''.
    (b) Qualifying Requirements for Workers.--Section 231(a) of the 
Trade Act of 1974 (19 U.S.C. 2291(a)) is amended--
        (1) in paragraph (1)--
            (A) in the matter preceding subparagraph (A), by striking 
        ``his application'' and inserting ``the worker's application''; 
        and
            (B) in subparagraph (A), by striking ``he is covered'' and 
        inserting ``the worker is covered'';
        (2) in paragraph (2)--
            (A) in subparagraph (A), by striking the period and 
        inserting a comma; and
            (B) in subparagraph (D), by striking ``5 U.S.C. 
        8521(a)(1)'' and inserting ``section 8521(a)(1) of title 5, 
        United States Code''; and
        (3) in paragraph (3)--
            (A) by striking ``he'' each place it appears and inserting 
        ``the worker''; and
            (B) in subparagraph (C), by striking ``him'' and inserting 
        ``the worker''.
    (c) Subpoena Power.--Section 249 of the Trade Act of 1974 (19 
U.S.C. 2321) is amended--
        (1) in the section heading, by striking ``subpena'' and 
    inserting ``subpoena'';
        (2) by striking ``subpena'' and inserting ``subpoena'' each 
    place it appears; and
        (3) in subsection (a), by striking ``him'' and inserting ``the 
    Secretary''.
    (d) Clerical Amendment.--The table of contents of the Trade Act of 
1974 is amended by striking the item relating to section 249 and 
inserting the following:
``Sec. 249. Subpoena power.''.

             PART II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS

SEC. 1861. EXPANSION TO SERVICE SECTOR FIRMS.

    (a) In General.--Section 251 of the Trade Act of 1974 (19 U.S.C. 
2341) is amended by inserting ``or service sector firm'' after 
``agricultural firm'' each place it appears.
    (b) Definition of Service Sector Firm.--Section 261 of the Trade 
Act of 1974 (19 U.S.C. 2351) is amended--
        (1) by striking ``chapter,'' and inserting ``chapter:'';
        (2) by striking ``the term `firm''' and inserting the 
    following:
        ``(1) Firm.--The term `firm'''; and
        (3) by adding at the end the following:
        ``(2) Service sector firm.--The term `service sector firm' 
    means a firm engaged in the business of supplying services.''.
    (c) Conforming Amendments.--
        (1) Section 251(c)(1)(C) of the Trade Act of 1974 (19 U.S.C. 
    2341(c)(1)(C)) is amended--
            (A) by inserting ``or services'' after ``articles'' the 
        first place it appears; and
            (B) by inserting ``or services which are supplied'' after 
        ``produced''.
        (2) Section 251(c)(2)(B)(ii) of such Act is amended to read as 
    follows:
        ``(ii) Any firm that engages in exploration or drilling for oil 
    or natural gas, or otherwise produces oil or natural gas, shall be 
    considered to be producing articles directly competitive with 
    imports of oil and with imports of natural gas.''.

SEC. 1862. MODIFICATION OF REQUIREMENTS FOR CERTIFICATION.

    Section 251(c)(1)(B) of the Trade Act of 1974 (19 U.S.C. 
2341(c)(1)(B)) is amended to read as follows:
        ``(B) that--
            ``(i) sales or production, or both, of the firm have 
        decreased absolutely,
            ``(ii) sales or production, or both, of an article or 
        service that accounted for not less than 25 percent of the 
        total sales or production of the firm during the 12-month 
        period preceding the most recent 12-month period for which date 
        are available have decreased absolutely,
            ``(iii) sales or production, or both, of the firm during 
        the most recent 12-month period for which data are available 
        have decreased compared to--
                ``(I) the average annual sales or production for the 
            firm during the 24-month period preceding that 12-month 
            period, or
                ``(II) the average annual sales or production for the 
            firm during the 36-month period preceding that 12-month 
            period, and
            ``(iv) sales or production, or both, of an article or 
        service that accounted for not less than 25 percent of the 
        total sales or production of the firm during the most recent 
        12-month period for which data are available have decreased 
        compared to--
                ``(I) the average annual sales or production for the 
            article or service during the 24-month period preceding 
            that 12-month period, or
                ``(II) the average annual sales or production for the 
            article or service during the 36-month period preceding 
            that 12-month period, and''.

SEC. 1863. BASIS FOR DETERMINATIONS.

    Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended, 
is further amended by adding at the end the following:
    ``(e) Basis for Secretary's Determinations.--For purposes of 
subsection (c)(1)(C), the Secretary may determine that there are 
increased imports of like or directly competitive articles or services, 
if customers accounting for a significant percentage of the decrease in 
the sales or production of the firm certify to the Secretary that such 
customers have increased their imports of such articles or services 
from a foreign country, either absolutely or relative to their 
acquisition of such articles or services from suppliers located in the 
United States.
    ``(f) Notification to Firms of Availability of Benefits.--Upon 
receiving notice from the Secretary of Labor under section 225 of the 
identity of a firm that is covered by a certification issued under 
section 223, the Secretary of Commerce shall notify the firm of the 
availability of adjustment assistance under this chapter.''.

SEC. 1864. OVERSIGHT AND ADMINISTRATION; AUTHORIZATION OF 
              APPROPRIATIONS.

    (a) In General.--Chapter 3 of title II of the Trade Act of 1974 (19 
U.S.C. 2341 et seq.) is amended--
        (1) by striking sections 254, 255, 256, and 257;
        (2) by redesignating sections 258, 259, 260, 261, 262, 264, and 
    265, as sections 256, 257, 258, 259, 260, 261, and 262, 
    respectively; and
        (3) by inserting after section 253 the following:

``SEC. 254. OVERSIGHT AND ADMINISTRATION.

    ``(a) In General.--The Secretary shall, to such extent and in such 
amounts as are provided in appropriations Acts, provide grants to 
intermediary organizations (referred to in section 253(b)(1)) 
throughout the United States pursuant to agreements with such 
intermediary organizations. Each such agreement shall require the 
intermediary organization to provide benefits to firms certified under 
section 251. The Secretary shall, to the maximum extent practicable, 
provide by October 1, 2010, that contracts entered into with 
intermediary organizations be for a 12-month period and that all such 
contracts have the same beginning date and the same ending date.
    ``(b) Distribution of Funds.--
        ``(1) In general.--Not later than 90 days after the date of the 
    enactment of this subsection, the Secretary shall develop a 
    methodology for the distribution of funds among the intermediary 
    organizations described in subsection (a).
        ``(2) Prompt initial distribution.--The methodology described 
    in paragraph (1) shall ensure the prompt initial distribution of 
    funds and establish additional criteria governing the apportionment 
    and distribution of the remainder of such funds among the 
    intermediary organizations.
        ``(3) Criteria.--The methodology described in paragraph (1) 
    shall include criteria based on the data in the annual report on 
    the trade adjustment assistance for firms program described in 
    section 1866 of the Trade and Globalization Adjustment Assistance 
    Act of 2009.
    ``(c) Requirements for Contracts.--An agreement with an 
intermediary organization described in subsection (a) shall require the 
intermediary organization to contract for the supply of services to 
carry out grants under this chapter in accordance with terms and 
conditions that are consistent with guidelines established by the 
Secretary.
    ``(d) Consultations.--
        ``(1) Consultations regarding methodology.--The Secretary shall 
    consult with the Committee on Finance of the Senate and the 
    Committee on Ways and Means of the House of Representatives--
            ``(A) not less than 30 days before finalizing the 
        methodology described in subsection (b); and
            ``(B) not less than 60 days before adopting any changes to 
        such methodology.
        ``(2) Consultations regarding guidelines.--The Secretary shall 
    consult with the Committee on Finance of the Senate and the 
    Committee on Ways and Means of the House of Representatives not 
    less than 60 days before finalizing the guidelines described in 
    subsection (c) or adopting any subsequent changes to such 
    guidelines.

``SEC. 255. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to the 
Secretary $50,000,000 for each of the fiscal years 2009 through 2010, 
and $12,501,000 for the period beginning October 1, 2010, and ending 
December 31, 2010, to carry out the provisions of this chapter. Amounts 
appropriated pursuant to this subsection shall--
        ``(1) be available to provide adjustment assistance to firms 
    that file a petition for such assistance pursuant to this chapter 
    on or before December 31, 2010; and
        ``(2) otherwise remain available until expended.
    ``(b) Personnel.--Of the amounts appropriated pursuant to this 
section for each fiscal year, $350,000 shall be available for full-time 
positions in the Department of Commerce to administer the provisions of 
this chapter. Of such funds the Secretary shall make available to the 
Economic Development Administration such sums as may be necessary to 
establish the position of Director of Adjustment Assistance for Firms 
and such other full-time positions as may be appropriate to administer 
the provisions of this chapter.''.
    (b) Residual Authority.--The Secretary of Commerce shall have the 
authority to modify, terminate, resolve, liquidate, or take any other 
action with respect to a loan, guarantee, contract, or any other 
financial assistance that was extended under section 254, 255, 256, or 
257 of the Trade Act of 1974 (19 U.S.C. 2344, 2345, 2346, and 2347), as 
in effect on the day before the effective date set forth in section 
1891.
    (c) Conforming Amendments.--
        (1) Section 256 of the Trade Act of 1974, as redesignated by 
    subsection (a) of this section, is amended by striking subsection 
    (d).
        (2) Section 258 of the Trade Act of 1974, as redesignated by 
    subsection (a) of this section, is amended--
            (A) in the first sentence, by striking ``and financial''; 
        and
            (B) in the last sentence--
                (i) by striking ``sections 253 and 254'' and inserting 
            ``section 253''; and
                (ii) by striking ``title 28 of the United States Code'' 
            and inserting ``title 28, United States Code''.
    (d) Clerical Amendments.--The table of contents of the Trade Act of 
1974 is amended by striking the items relating to sections 254, 255, 
256, 257, 258, 259, 260, 261, 262, 264, and 265, and inserting the 
following:
``Sec. 254. Oversight and administration.
``Sec. 255. Authorization of appropriations.
``Sec. 256. Protective provisions.
``Sec. 257. Penalties.
``Sec. 258. Civil actions.
``Sec. 259. Definitions.
``Sec. 260. Regulations.
``Sec. 261. Study by Secretary of Commerce when International Trade 
          Commission begins investigation; action where there is 
          affirmative finding.
``Sec. 262. Assistance to industries.''.
    (e) Effective Date.--This section and the amendments made by this 
section shall take effect upon the expiration of the 90-day period 
beginning on the date of the enactment of this Act, except that 
subsections (b) and (d) of section 254 of the Trade Act of 1974 (as 
added by subsection (a) of this section) shall take effect on such date 
of enactment.

SEC. 1865. INCREASED PENALTIES FOR FALSE STATEMENTS.

    Section 257 of the Trade Act of 1974, as redesignated by section 
1864(a), is amended to read as follows:

``SEC. 257. PENALTIES.

    ``Any person who--
        ``(1) makes a false statement of a material fact knowing it to 
    be false, or knowingly fails to disclose a material fact, or 
    willfully overvalues any security, for the purpose of influencing 
    in any way a determination under this chapter, or for the purpose 
    of obtaining money, property, or anything of value under this 
    chapter, or
        ``(2) makes a false statement of a material fact knowing it to 
    be false, or knowingly fails to disclose a material fact, when 
    providing information to the Secretary during an investigation of a 
    petition under this chapter,
shall be imprisoned for not more than 2 years, or fined under title 18, 
United States Code, or both.''.

SEC. 1866. ANNUAL REPORT ON TRADE ADJUSTMENT ASSISTANCE FOR FIRMS.

    (a) In General.--Not later than December 15, 2009, and each year 
thereafter, the Secretary of Commerce shall prepare a report containing 
data regarding the trade adjustment assistance for firms program 
provided for in chapter 3 of title II of the Trade Act of 1974 (19 
U.S.C. 2341 et seq.) for the preceding fiscal year. The data shall 
include the following:
        (1) The number of firms that inquired about the program.
        (2) The number of petitions filed under section 251.
        (3) The number of petitions certified and denied.
        (4) The average time for processing petitions.
        (5) The number of petitions filed and firms certified for each 
    congressional district of the United States.
        (6) The number of firms that received assistance in preparing 
    their petitions.
        (7) The number of firms that received assistance developing 
    business recovery plans.
        (8) The number of business recovery plans approved and denied 
    by the Secretary of Commerce.
        (9) Sales, employment, and productivity at each firm 
    participating in the program at the time of certification.
        (10) Sales, employment, and productivity at each firm upon 
    completion of the program and each year for the 2-year period 
    following completion.
        (11) The financial assistance received by each firm 
    participating in the program.
        (12) The financial contribution made by each firm participating 
    in the program.
        (13) The types of technical assistance included in the business 
    recovery plans of firms participating in the program.
        (14) The number of firms leaving the program before completing 
    the project or projects in their business recovery plans and the 
    reason the project was not completed.
    (b) Classification of Data.--To the extent possible, in collecting 
and reporting the data described in subsection (a), the Secretary shall 
classify the data by intermediary organization, State, and national 
totals.
    (c) Report to Congress; Publication.--The Secretary of Commerce 
shall--
        (1) submit the report described in subsection (a) to the 
    Committee on Finance of the Senate and the Committee on Ways and 
    Means of the House of Representatives; and
        (2) publish the report in the Federal Register and on the 
    website of the Department of Commerce.
    (d) Protection of Confidential Information.--The Secretary of 
Commerce may not release information described in subsection (a) that 
the Secretary considers to be confidential business information unless 
the person submitting the confidential business information had notice, 
at the time of submission, that such information would be released by 
the Secretary, or such person subsequently consents to the release of 
the information. Nothing in this subsection shall be construed to 
prohibit the Secretary from providing such confidential business 
information to a court in camera or to another party under a protective 
order issued by a court.

SEC. 1867. TECHNICAL CORRECTIONS.

    (a) In General.--Section 251 of the Trade Act of 1974 (19 U.S.C. 
2341), as amended, is further amended--
        (1) in subsection (a), by striking ``he has'' and inserting 
    ``the Secretary has''; and
        (2) in subsection (d), by striking ``60 days'' and inserting 
    ``40 days''.
    (b) Technical Assistance.--Section 253(a)(3) of the Trade Act of 
1974 (19 U.S.C. 2343(a)(3)) is amended by striking ``of a certified 
firm'' and inserting ``to a certified firm''.

         PART III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

SEC. 1871. PURPOSE.

    The purpose of the amendments made by this part is to assist 
communities impacted by trade with economic adjustment through the 
coordination of Federal, State, and local resources, the creation of 
community-based development strategies, and the development and 
provision of programs that meet the training needs of workers covered 
by certifications under section 223.

SEC. 1872. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.

    (a) In General.--Chapter 4 of title II of the Trade Act of 1974 (19 
U.S.C. 2371 et seq.) is amended to read as follows:

        ``CHAPTER 4--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES

      ``Subchapter A--Trade Adjustment Assistance for Communities

``SEC. 271. DEFINITIONS.

    ``In this subchapter:
        ``(1) Agricultural commodity producer.--The term `agricultural 
    commodity producer' has the meaning given that term in section 291.
        ``(2) Community.--The term `community' means a city, county, or 
    other political subdivision of a State or a consortium of political 
    subdivisions of a State.
        ``(3) Community impacted by trade.--The term `community 
    impacted by trade' means a community described in section 
    273(b)(2).
        ``(4) Eligible community.--The term `eligible community' means 
    a community that the Secretary has determined under section 
    273(b)(1) is eligible to apply for assistance under this 
    subchapter.
        ``(5) Secretary.--The term `Secretary' means the Secretary of 
    Commerce.

``SEC. 272. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE FOR 
              COMMUNITIES PROGRAM.

    ``Not later than August 1, 2009, the Secretary shall establish a 
trade adjustment assistance for communities program at the Department 
of Commerce under which the Secretary shall--
        ``(1) provide technical assistance under section 274 to 
    communities impacted by trade to facilitate the economic adjustment 
    of those communities; and
        ``(2) award grants to communities impacted by trade to carry 
    out strategic plans developed under section 276.

``SEC. 273. ELIGIBILITY; NOTIFICATION.

    ``(a) Petition.--
        ``(1) In general.--A community may submit a petition to the 
    Secretary for an affirmative determination under subsection (b)(1) 
    that the community is eligible to apply for assistance under this 
    subchapter if--
            ``(A) on or after August 1, 2009, one or more 
        certifications described in subsection (b)(3) are made with 
        respect to the community; and
            ``(B) the community submits the petition not later than 180 
        days after the date of the most recent certification.
        ``(2) Special rule with respect to certain communities.--In the 
    case of a community with respect to which one or more 
    certifications described in subsection (b)(3) were made on or after 
    January 1, 2007, and before August 1, 2009, the community may 
    submit not later than February 1, 2010, a petition to the Secretary 
    for an affirmative determination under subsection (b)(1).
    ``(b) Affirmative Determination.--
        ``(1) In general.--The Secretary shall make an affirmative 
    determination that a community is eligible to apply for assistance 
    under this subchapter if the Secretary determines that the 
    community is a community impacted by trade.
        ``(2) Community impacted by trade.--A community is a community 
    impacted by trade if--
            ``(A) one or more certifications described in paragraph (3) 
        are made with respect to the community; and
            ``(B) the Secretary determines that the community is 
        significantly affected by the threat to, or the loss of, jobs 
        associated with any such certification.
        ``(3) Certification described.--A certification described in 
    this paragraph is a certification--
            ``(A) by the Secretary of Labor that a group of workers in 
        the community is eligible to apply for assistance under section 
        223;
            ``(B) by the Secretary of Commerce that a firm located in 
        the community is eligible to apply for adjustment assistance 
        under section 251; or
            ``(C) by the Secretary of Agriculture that a group of 
        agricultural commodity producers in the community is eligible 
        to apply for adjustment assistance under section 293.
    ``(c) Notifications.--
        ``(1) Notification to the governor.--The Governor of a State 
    shall be notified promptly--
            ``(A) by the Secretary of Labor, upon making a 
        determination that a group of workers in the State is eligible 
        for assistance under section 223;
            ``(B) by the Secretary of Commerce, upon making a 
        determination that a firm in the State is eligible for 
        assistance under section 251; and
            ``(C) by the Secretary of Agriculture, upon making a 
        determination that a group of agricultural commodity producers 
        in the State is eligible for assistance under section 293.
        ``(2) Notification to community.--Upon making an affirmative 
    determination under subsection (b)(1) that a community is eligible 
    to apply for assistance under this subchapter, the Secretary shall 
    promptly notify the community and the Governor of the State in 
    which the community is located--
            ``(A) of the affirmative determination;
            ``(B) of the applicable provisions of this subchapter; and
            ``(C) of the means for obtaining assistance under this 
        subchapter and other appropriate economic assistance that may 
        be available to the community.

``SEC. 274. TECHNICAL ASSISTANCE.

    ``(a) In General.--The Secretary shall provide comprehensive 
technical assistance to an eligible community to assist the community 
to--
        ``(1) diversify and strengthen the economy in the community;
        ``(2) identify significant impediments to economic development 
    that result from the impact of trade on the community; and
        ``(3) develop a strategic plan under section 276 to address 
    economic adjustment and workforce dislocation in the community, 
    including unemployment among agricultural commodity producers.
    ``(b) Coordination of Federal Response.--The Secretary shall 
coordinate the Federal response to an eligible community by--
        ``(1) identifying Federal, State, and local resources that are 
    available to assist the community in responding to economic 
    distress; and
        ``(2) assisting the community in accessing available Federal 
    assistance and ensuring that such assistance is provided in a 
    targeted, integrated manner.
    ``(c) Interagency Community Assistance Working Group.--
        ``(1) In general.--The Secretary shall establish an interagency 
    Community Assistance Working Group, to be chaired by the Secretary 
    or the Secretary's designee, which shall assist the Secretary with 
    the coordination of the Federal response pursuant to subsection 
    (b).
        ``(2) Membership.--The Working Group shall consist of 
    representatives of any Federal department or agency with 
    responsibility for providing economic adjustment assistance, 
    including the Department of Agriculture, the Department of Defense, 
    the Department of Education, the Department of Labor, the 
    Department of Housing and Urban Development, the Department of 
    Health and Human Services, the Small Business Administration, the 
    Department of the Treasury, and any other Federal, State, or 
    regional public department or agency the Secretary determines to be 
    appropriate.

``SEC. 275. GRANTS FOR ELIGIBLE COMMUNITIES.

    ``(a) In General.--The Secretary may award a grant under this 
section to an eligible community to assist the community in carrying 
out any project or program that is included in a strategic plan 
developed by the community under section 276.
    ``(b) Application.--
        ``(1) In general.--An eligible community seeking to receive a 
    grant under this section shall submit a grant application to the 
    Secretary that contains--
            ``(A) the strategic plan developed by the community under 
        section 276(a)(1)(A) and approved by the Secretary under 
        section 276(a)(1)(B); and
            ``(B) a description of the project or program included in 
        the strategic plan with respect to which the community seeks 
        the grant.
        ``(2) Coordination among grant programs.--If an entity in an 
    eligible community is seeking or plans to seek a Community College 
    and Career Training Grant under section 278 or a Sector Partnership 
    Grant under section 279A while the eligible community is seeking a 
    grant under this section, the eligible community shall include in 
    the grant application a description of how the eligible community 
    will integrate any projects or programs carried out using a grant 
    under this section with any projects or programs that may be 
    carried out using such other grants.
    ``(c) Limitation.--An eligible community may not be awarded more 
than $5,000,000 under this section.
    ``(d) Cost-Sharing.--
        ``(1) Federal share.--The Federal share of a project or program 
    for which a grant is awarded under this section may not exceed 95 
    percent of the cost of such project or program.
        ``(2) Community share.--The Secretary shall require, as a 
    condition of awarding a grant to an eligible community under this 
    section, that the eligible community contribute not less than an 
    amount equal to 5 percent of the amount of the grant toward the 
    cost of the project or program for which the grant is awarded.
    ``(e) Grants to Small- and Medium-Sized Communities.--The Secretary 
shall give priority to grant applications submitted under this section 
by eligible communities that are small- and medium-sized communities.
    ``(f) Annual Report.--Not later than December 15 in each of the 
calendar years 2009 through 2011, the Secretary shall submit to the 
Committee on Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives a report--
        ``(1) describing each grant awarded under this section during 
    the preceding fiscal year; and
        ``(2) assessing the impact on the eligible community of each 
    such grant awarded in a fiscal year before the fiscal year referred 
    to in paragraph (1).

``SEC. 276. STRATEGIC PLANS.

    ``(a) In General.--
        ``(1) Development.--An eligible community that intends to apply 
    for a grant under section 275 shall--
            ``(A) develop a strategic plan for the community's economic 
        adjustment to the impact of trade; and
            ``(B) submit the plan to the Secretary for evaluation and 
        approval.
        ``(2) Involvement of private and public entities.--
            ``(A) In general.--To the extent practicable, an eligible 
        community shall consult with entities described in subparagraph 
        (B) in developing a strategic plan under paragraph (1).
            ``(B) Entities described.--Entities described in this 
        subparagraph are public and private entities within the 
        eligible community, including--
                ``(i) local, county, or State government agencies 
            serving the community;
                ``(ii) firms, including small- and medium-sized firms, 
            within the community;
                ``(iii) local workforce investment boards established 
            under section 117 of the Workforce Investment Act of 1998 
            (29 U.S.C. 2832);
                ``(iv) labor organizations, including State labor 
            federations and labor-management initiatives, representing 
            workers in the community; and
                ``(v) educational institutions, local educational 
            agencies, or other training providers serving the 
            community.
    ``(b) Contents.--The strategic plan shall, at a minimum, contain 
the following:
        ``(1) A description and analysis of the capacity of the 
    eligible community to achieve economic adjustment to the impact of 
    trade.
        ``(2) An analysis of the economic development challenges and 
    opportunities facing the community as well as the strengths and 
    weaknesses of the economy of the community.
        ``(3) An assessment of the commitment of the eligible community 
    to the strategic plan over the long term and the participation and 
    input of members of the community affected by economic dislocation.
        ``(4) A description of the role and the participation of the 
    entities described in subsection (a)(2)(B) in developing the 
    strategic plan.
        ``(5) A description of the projects to be undertaken by the 
    eligible community under the strategic plan.
        ``(6) A description of how the strategic plan and the projects 
    to be undertaken by the eligible community will facilitate the 
    community's economic adjustment.
        ``(7) A description of the educational and training programs 
    available to workers in the eligible community and the future 
    employment needs of the community.
        ``(8) An assessment of the cost of implementing the strategic 
    plan, the timing of funding required by the eligible community to 
    implement the strategic plan, and the method of financing to be 
    used to implement the strategic plan.
        ``(9) A strategy for continuing the economic adjustment of the 
    eligible community after the completion of the projects described 
    in paragraph (5).
    ``(c) Grants to Develop Strategic Plans.--
        ``(1) In general.--The Secretary, upon receipt of an 
    application from an eligible community, may award a grant to the 
    community to assist the community in developing a strategic plan 
    under subsection (a)(1). A grant awarded under this paragraph shall 
    not exceed 75 percent of the cost of developing the strategic plan.
        ``(2) Funds to be used.--Of the funds appropriated pursuant to 
    section 277(c), the Secretary may make available not more than 
    $25,000,000 for each of the fiscal years 2009 and 2010, and 
    $6,250,000 for the period beginning October 1, 2010, and ending 
    December 31, 2010, to provide grants to eligible communities under 
    paragraph (1).

``SEC. 277. GENERAL PROVISIONS.

    ``(a) Regulations.--
        ``(1) In general.--The Secretary shall prescribe such 
    regulations as are necessary to carry out the provisions of this 
    subchapter, including--
            ``(A) establishing specific guidelines for the submission 
        and evaluation of strategic plans under section 276;
            ``(B) establishing specific guidelines for the submission 
        and evaluation of grant applications under section 275; and
            ``(C) administering the grant programs established under 
        sections 275 and 276.
        ``(2) Consultations.--The Secretary shall consult with the 
    Committee on Finance of the Senate and the Committee on Ways and 
    Means of the House of Representatives not less than 90 days prior 
    to promulgating any final rule or regulation pursuant to paragraph 
    (1).
    ``(b) Personnel.--The Secretary shall designate such staff as may 
be necessary to carry out the responsibilities described in this 
subchapter.
    ``(c) Authorization of Appropriations.--
        ``(1) In general.--There are authorized to be appropriated to 
    the Secretary $150,000,000 for each of the fiscal years 2009 and 
    2010, and $37,500,000 for the period beginning October 1, 2010, and 
    ending December 31, 2010, to carry out this subchapter.
        ``(2) Availability.--Amounts appropriated pursuant to this 
    subchapter--
            ``(A) shall be available to provide adjustment assistance 
        to communities that have been approved for assistance pursuant 
        to this chapter on or before December 31, 2010; and
            ``(B) shall otherwise remain available until expended.
        ``(3) Supplement not supplant.--Funds appropriated pursuant to 
    this subchapter shall be used to supplement and not supplant other 
    Federal, State, and local public funds expended to provide economic 
    development assistance for communities.

  ``Subchapter B--Community College and Career Training Grant Program

``SEC. 278. COMMUNITY COLLEGE AND CAREER TRAINING GRANT PROGRAM.

    ``(a) Grants Authorized.--
        ``(1) In general.--Beginning August 1, 2009, the Secretary may 
    award Community College and Career Training Grants to eligible 
    institutions for the purpose of developing, offering, or improving 
    educational or career training programs for workers eligible for 
    training under section 236.
        ``(2) Limitations.--An eligible institution may not be 
    awarded--
            ``(A) more than one grant under this section; or
            ``(B) a grant under this section in excess of $1,000,000.
    ``(b) Definitions.--In this section:
        ``(1) Eligible institution.--The term `eligible institution' 
    means an institution of higher education (as defined in section 102 
    of the Higher Education Act of 1965 (20 U.S.C. 1002)), but only 
    with respect to a program offered by the institution that can be 
    completed in not more than 2 years.
        ``(2) Secretary.--The term `Secretary' means the Secretary of 
    Labor.
    ``(c) Grant Proposals.--
        ``(1) In general.--An eligible institution seeking to receive a 
    grant under this section shall submit a grant proposal to the 
    Secretary at such time, in such manner, and containing such 
    information as the Secretary may require.
        ``(2) Guidelines.--Not later than June 1, 2009, the Secretary 
    shall--
            ``(A) promulgate guidelines for the submission of grant 
        proposals under this section; and
            ``(B) publish and maintain such guidelines on the website 
        of the Department of Labor.
        ``(3) Assistance.--The Secretary shall offer assistance in 
    preparing a grant proposal to any eligible institution that 
    requests such assistance.
        ``(4) General requirements for grant proposals.--
            ``(A) In general.--A grant proposal submitted to the 
        Secretary under this section shall include a detailed 
        description of--
                ``(i) the specific project for which the grant proposal 
            is submitted, including the manner in which the grant will 
            be used to develop, offer, or improve an educational or 
            career training program that is suited to workers eligible 
            for training under section 236;
                ``(ii) the extent to which the project for which the 
            grant proposal is submitted will meet the educational or 
            career training needs of workers in the community served by 
            the eligible institution who are eligible for training 
            under section 236;
                ``(iii) the extent to which the project for which the 
            grant proposal is submitted fits within any overall 
            strategic plan developed by an eligible community under 
            section 276;
                ``(iv) the extent to which the project for which the 
            grant proposal is submitted relates to any project funded 
            by a Sector Partnership Grant awarded under section 279A; 
            and
                ``(v) any previous experience of the eligible 
            institution in providing educational or career training 
            programs to workers eligible for training under section 
            236.
            ``(B) Absence of experience.--The absence of any previous 
        experience in providing educational or career training programs 
        described in subparagraph (A)(v) shall not automatically 
        disqualify an eligible institution from receiving a grant under 
        this section.
        ``(5) Community outreach required.--In order to be considered 
    by the Secretary, a grant proposal submitted by an eligible 
    institution under this section shall--
            ``(A) demonstrate that the eligible institution--
                ``(i) reached out to employers, and other entities 
            described in section 276(a)(2)(B) to identify--

                    ``(I) any shortcomings in existing educational and 
                career training opportunities available to workers in 
                the community; and
                    ``(II) any future employment opportunities within 
                the community and the educational and career training 
                skills required for workers to meet the future 
                employment demand;

                ``(ii) reached out to other similarly situated 
            institutions in an effort to benefit from any best 
            practices that may be shared with respect to providing 
            educational or career training programs to workers eligible 
            for training under section 236; and
                ``(iii) reached out to any eligible partnership in the 
            community that has sought or received a Sector Partnership 
            Grant under section 279A to enhance the effectiveness of 
            each grant and avoid duplication of efforts; and
            ``(B) include a detailed description of--
                ``(i) the extent and outcome of the outreach conducted 
            under subparagraph (A);
                ``(ii) the extent to which the project for which the 
            grant proposal is submitted will contribute to meeting any 
            shortcomings identified under subparagraph (A)(i)(I) or any 
            educational or career training needs identified under 
            subparagraph (A)(i)(II); and
                ``(iii) the extent to which employers, including small- 
            and medium-sized firms within the community, have 
            demonstrated a commitment to employing workers who would 
            benefit from the project for which the grant proposal is 
            submitted.
    ``(d) Criteria for Award of Grants.--
        ``(1) In general.--Subject to the appropriation of funds, the 
    Secretary shall award a grant under this section based on--
            ``(A) a determination of the merits of the grant proposal 
        submitted by the eligible institution to develop, offer, or 
        improve educational or career training programs to be made 
        available to workers eligible for training under section 236;
            ``(B) an evaluation of the likely employment opportunities 
        available to workers who complete an educational or career 
        training program that the eligible institution proposes to 
        develop, offer, or improve; and
            ``(C) an evaluation of prior demand for training programs 
        by workers eligible for training under section 236 in the 
        community served by the eligible institution, as well as the 
        availability and capacity of existing training programs to meet 
        future demand for training programs.
        ``(2) Priority for certain communities.--In awarding grants 
    under this section, the Secretary shall give priority to an 
    eligible institution that serves a community that the Secretary of 
    Commerce has determined under section 273 is eligible to apply for 
    assistance under subchapter A within the 5-year period preceding 
    the date on which the grant proposal is submitted to the Secretary 
    under this section.
        ``(3) Matching requirements.--A grant awarded under this 
    section may not be used to satisfy any private matching requirement 
    under any other provision of law.
    ``(e) Annual Report.--Not later than December 15 in each of the 
calendar years 2009 through 2011, the Secretary shall submit to the 
Committee on Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives a report--
        ``(1) describing each grant awarded under this section during 
    the preceding fiscal year; and
        ``(2) assessing the impact of each award of a grant under this 
    section in a fiscal year preceding the fiscal year referred to in 
    paragraph (1) on workers receiving training under section 236.

``SEC. 279. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Labor $40,000,000 for each of the 
fiscal years 2009 and 2010, and $10,000,000 for the period beginning 
October 1, 2010, and ending December 31, 2010, to fund the Community 
College and Career Training Grant Program. Funds appropriated pursuant 
to this section shall remain available until expended.
    ``(b) Supplement Not Supplant.--Funds appropriated pursuant to this 
section shall be used to supplement and not supplant other Federal, 
State, and local public funds expended to support community college and 
career training programs.

   ``Subchapter C--Industry or Sector Partnership Grant Program for 
                     Communities Impacted by Trade

``SEC. 279A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM FOR 
              COMMUNITIES IMPACTED BY TRADE.

    ``(a) Purpose.--The purpose of this subchapter is to facilitate 
efforts by industry or sector partnerships to strengthen and revitalize 
industries and create employment opportunities for workers in 
communities impacted by trade.
    ``(b) Definitions.--In this subchapter:
        ``(1) Community impacted by trade.--The term `community 
    impacted by trade' has the meaning given that term in section 271.
        ``(2) Dislocated worker.--The term `dislocated worker' means a 
    worker who has been totally or partially separated, or is 
    threatened with total or partial separation, from employment in an 
    industry or sector in a community impacted by trade.
        ``(3) Eligible partnership.--The term `eligible partnership' 
    means a voluntary partnership composed of public and private 
    persons, firms, or other entities within a community impacted by 
    trade, that shall include representatives of--
            ``(A) an industry or sector within the community, including 
        an industry association;
            ``(B) local, county, or State government;
            ``(C) multiple firms in the industry or sector, including 
        small- and medium-sized firms, within the community;
            ``(D) local workforce investment boards established under 
        section 117 of the Workforce Investment Act of 1998 (29 U.S.C. 
        2832);
            ``(E) labor organizations, including State labor 
        federations and labor-management initiatives, representing 
        workers in the community; and
            ``(F) educational institutions, local educational agencies, 
        or other training providers serving the community.
        ``(4) Lead entity.--The term `lead entity' means--
            ``(A) an entity designated by the eligible partnership to 
        be responsible for submitting a grant proposal under subsection 
        (e) and serving as the eligible partnership's fiscal agent in 
        expending any Sector Partnership Grant awarded under this 
        section; or
            ``(B) a State agency designated by the Governor of the 
        State to carry out the responsibilities described in 
        subparagraph (A).
        ``(5) Secretary.--The term `Secretary' means the Secretary of 
    Labor.
        ``(6) Targeted industry or sector.--The term `targeted industry 
    or sector' means the industry or sector represented by an eligible 
    partnership.
    ``(c) Sector Partnership Grants Authorized.--Beginning on August 1, 
2009, and subject to the appropriation of funds, the Secretary shall 
award Sector Partnership Grants to eligible partnerships to assist the 
eligible partnerships in carrying out projects, over periods of not 
more than 3 years, to strengthen and revitalize industries and sectors 
and create employment opportunities for dislocated workers.
    ``(d) Use of Sector Partnership Grants.--An eligible partnership 
may use a Sector Partnership Grant to carry out any project that the 
Secretary determines will further the purpose of this subchapter, which 
may include--
        ``(1) identifying the skill needs of the targeted industry or 
    sector and any gaps in the available supply of skilled workers in 
    the community impacted by trade, and developing strategies for 
    filling the gaps, including by--
            ``(A) developing systems to better link firms in the 
        targeted industry or sector to available skilled workers;
            ``(B) helping firms in the targeted industry or sector to 
        obtain access to new sources of qualified job applicants;
            ``(C) retraining dislocated and incumbent workers; or
            ``(D) facilitating the training of new skilled workers by 
        aligning the instruction provided by local suppliers of 
        education and training services with the needs of the targeted 
        industry or sector;
        ``(2) analyzing the skills and education levels of dislocated 
    and incumbent workers and developing training to address skill gaps 
    that prevent such workers from obtaining jobs in the targeted 
    industry or sector;
        ``(3) helping firms, especially small- and medium-sized firms, 
    in the targeted industry or sector increase their productivity and 
    the productivity of their workers;
        ``(4) helping such firms retain incumbent workers;
        ``(5) developing learning consortia of small- and medium-sized 
    firms in the targeted industry or sector with similar training 
    needs to enable the firms to combine their purchases of training 
    services, and thereby lower their training costs;
        ``(6) providing information and outreach activities to firms in 
    the targeted industry or sector regarding the activities of the 
    eligible partnership and other local service suppliers that could 
    assist the firms in meeting needs for skilled workers;
        ``(7) seeking, applying, and disseminating best practices 
    learned from similarly situated communities impacted by trade in 
    the development and implementation of economic growth and 
    revitalization strategies; and
        ``(8) identifying additional public and private resources to 
    support the activities described in this subsection, which may 
    include the option to apply for a community grant under section 275 
    or a Community College and Career Training Grant under section 278 
    (subject to meeting any additional requirements of those sections).
    ``(e) Grant Proposals.--
        ``(1) In general.--The lead entity of an eligible partnership 
    seeking to receive a Sector Partnership Grant under this section 
    shall submit a grant proposal to the Secretary at such time, in 
    such manner, and containing such information as the Secretary may 
    require.
        ``(2) General requirements of grant proposals.--A grant 
    proposal submitted under paragraph (1) shall, at a minimum--
            ``(A) identify the members of the eligible partnership;
            ``(B) identify the targeted industry or sector for which 
        the eligible partnership intends to carry out projects using 
        the Sector Partnership Grant;
            ``(C) describe the goals that the eligible partnership 
        intends to achieve to promote the targeted industry or sector;
            ``(D) describe the projects that the eligible partnership 
        will undertake to achieve such goals;
            ``(E) demonstrate that the eligible partnership has the 
        organizational capacity to carry out the projects described in 
        subparagraph (D);
            ``(F) explain--
                ``(i) whether--

                    ``(I) the community impacted by trade has sought or 
                received a community grant under section 275;
                    ``(II) an eligible institution in the community has 
                sought or received a Community College and Career 
                Training Grant under section 278; or
                    ``(III) any other entity in the community has 
                received funds pursuant to any other federally funded 
                training project; and

                ``(ii) how the eligible partnership will coordinate its 
            use of a Sector Partnership Grant with the use of such 
            other grants or funds in order to enhance the effectiveness 
            of each grant and any such funds and avoid duplication of 
            efforts; and
            ``(G) include performance measures, developed based on the 
        performance measures issued by the Secretary under subsection 
        (g)(2), and a timeline for measuring progress toward achieving 
        the goals described in subparagraph (C).
    ``(f) Award of Grants.--
        ``(1) In general.--Upon application by the lead entity of an 
    eligible partnership, the Secretary may award a Sector Partnership 
    Grant to the eligible partnership to assist the partnership in 
    carrying out any of the projects in the grant proposal that the 
    Secretary determines will further the purposes of this subchapter.
        ``(2) Limitations.--An eligible partnership may not be 
    awarded--
            ``(A) more than one Sector Partnership Grant; or
            ``(B) a total grant award under this subchapter in excess 
        of--
                ``(i) except as provided in clause (ii), $2,500,000; or
                ``(ii) in the case of an eligible partnership located 
            within a community impacted by trade that is not served by 
            an institution receiving a Community College and Career 
            Training Grant under section 278, $3,000,000.
    ``(g) Administration by the Secretary.--
        ``(1) Technical assistance and oversight.--
            ``(A) In general.--The Secretary shall provide technical 
        assistance to, and oversight of, the lead entity of an eligible 
        partnership in applying for and administering Sector 
        Partnership Grants awarded under this section.
            ``(B) Technical assistance.--Technical assistance provided 
        under subparagraph (A) shall include providing conferences and 
        such other methods of collecting and disseminating information 
        on best practices developed by eligible partnerships as the 
        Secretary determines appropriate.
            ``(C) Grants or contracts for technical assistance.--The 
        Secretary may award a grant or contract to one or more national 
        or State organizations to provide technical assistance to 
        foster the planning, formation, and implementation of eligible 
        partnerships.
        ``(2) Performance measures.--The Secretary shall issue a range 
    of performance measures, with quantifiable benchmarks, and 
    methodologies that eligible partnerships may use to measure 
    progress toward the goals described in subsection (e). In 
    developing such measures, the Secretary shall consider the benefits 
    of the eligible partnership and its activities for workers, firms, 
    industries, and communities.
    ``(h) Reports.--
        ``(1) Progress report.--Not later than 1 year after receiving a 
    Sector Partnership Grant, and 3 years thereafter, the lead entity 
    shall submit to the Secretary, on behalf of the eligible 
    partnership, a report containing--
            ``(A) a detailed description of the progress made toward 
        achieving the goals described in subsection (e)(2)(C), using 
        the performance measures required under subsection (e)(2)(G);
            ``(B) a detailed evaluation of the impact of the grant 
        award on workers and employers in the community impacted by 
        trade; and
            ``(C) a detailed description of all expenditures of funds 
        awarded to the eligible partnership under the Sector 
        Partnership Grant approved by the Secretary under this 
        subchapter.
        ``(2) Annual report.--Not later than December 15 in each of the 
    calendar years 2009 through 2011, the Secretary shall submit to the 
    Committee on Finance of the Senate and the Committee on Ways and 
    Means of the House of Representatives a report--
            ``(A) describing each Sector Partnership Grant awarded to 
        an eligible partnership during the preceding fiscal year; and
            ``(B) assessing the impact of each Sector Partnership Grant 
        awarded in a fiscal year preceding the fiscal year referred to 
        in subparagraph (A) on workers and employers in communities 
        impacted by trade.

``SEC. 279B. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to the 
Secretary of Labor $40,000,000 for each of the fiscal years 2009 and 
2010, and $10,000,000 for the period beginning October 1, 2010, and 
ending December 31, 2010, to carry out the Sector Partnership Grant 
program under section 279A. Funds appropriated pursuant to this section 
shall remain available until expended.
    ``(b) Supplement Not Supplant.--Funds appropriated pursuant to this 
section shall be used to supplement and not supplant other Federal, 
State, and local public funds expended to support the economic 
development of local communities.
    ``(c) Administrative Costs.--The Secretary may retain not more than 
5 percent of the funds appropriated pursuant to this section for each 
fiscal year to administer the Sector Partnership Grant program under 
section 279A.

                   ``Subchapter D--General Provisions

``SEC. 279C. RULE OF CONSTRUCTION.

    ``Nothing in this chapter prevents a worker from receiving trade 
adjustment assistance under chapter 2 of this title at the same time 
the worker is receiving assistance in any manner from--
        ``(1) a community receiving a community grant under subchapter 
    A;
        ``(2) an eligible institution receiving a Community College and 
    Career Training Grant under subchapter B; or
        ``(3) an eligible partnership receiving a Sector Partnership 
    Grant under subchapter C.''.

SEC. 1873. CONFORMING AMENDMENTS.

    (a) Table of Contents.--The table of contents of the Trade Act of 
1974 is amended by striking the items relating to chapter 4 of title II 
and inserting the following:

        ``Chapter 4--Trade Adjustment Assistance for Communities

       ``Subchapter A--Trade Adjustment Assistance for Communities

``Sec. 271. Definitions.
``Sec. 272. Establishment of trade adjustment assistance for communities 
          program.
``Sec. 273. Eligibility; notification.
``Sec. 274. Technical assistance.
``Sec. 275. Grants for eligible communities.
``Sec. 276. Strategic plans.
``Sec. 277. General provisions.

   ``Subchapter B--Community College and Career Training Grant Program

``Sec. 278. Community college and career training grant program.
``Sec. 279. Authorization of appropriations.

    ``Subchapter C--Industry or Sector Partnership Grant Program for 
                      Communities Impacted by Trade

``Sec. 279A. Industry or sector partnership grant program for 
          communities impacted by trade.
``Sec. 279B. Authorization of appropriations.

                   ``Subchapter D--General Provisions

``Sec. 279C. Rule of construction.''
    (b) Judicial Review.--
        (1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a)) 
    is amended--
            (A) by inserting ``or 296'' after ``section 293'';
            (B) by striking ``or any other interested domestic party'' 
        and inserting ``or authorized representative of a community''; 
        and
            (C) by striking ``section 271'' and inserting ``section 
        273''.
        (2) Section 1581(d) of title 28, United States Code, is 
    amended--
            (A) in paragraph (2), by striking ``; and'' and inserting a 
        semicolon;
            (B) in paragraph (3)--
                (i) by striking ``271'' and inserting ``273''; and
                (ii) by striking the period and inserting ``; and''; 
            and
            (C) by adding at the end the following:
        ``(4) any final determination of the Secretary of Agriculture 
    under section 293 or 296 of the Trade Act of 1974 (19 U.S.C. 2401b) 
    with respect to the eligibility of a group of agricultural 
    commodity producers for adjustment assistance under such Act.''.

            PART IV--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

SEC. 1881. DEFINITIONS.

    Section 291 of the Trade Act of 1974 (19 U.S.C. 2401) is amended--
        (1) by amending paragraph (1) to read as follows:
        ``(1) Agricultural commodity.--The term `agricultural 
    commodity' includes--
            ``(A) any agricultural commodity (including livestock) in 
        its raw or natural state;
            ``(B) any class of goods within an agricultural commodity; 
        and
            ``(C) in the case of an agricultural commodity producer 
        described in paragraph (2)(B), wild-caught aquatic species.'';
        (2) by amending paragraph (2) to read as follows:
        ``(2) Agricultural commodity producer.--The term `agricultural 
    commodity producer' means--
            ``(A) a person that shares in the risk of producing an 
        agricultural commodity and that is entitled to a share of the 
        commodity for marketing, including an operator, a sharecropper, 
        or a person that owns or rents the land on which the commodity 
        is produced; or
            ``(B) a person that reports gain or loss from the trade or 
        business of fishing on the person's annual Federal income tax 
        return for the taxable year that most closely corresponds to 
        the marketing year with respect to which a petition is filed 
        under section 292.''; and
        (3) by adding at the end the following:
        ``(7) Marketing year.--The term `marketing year' means--
            ``(A) a marketing year designated by the Secretary with 
        respect to an agricultural commodity; or
            ``(B) in the case of an agricultural commodity with respect 
        to which the Secretary does not designate a marketing year, a 
        calendar year.''.

SEC. 1882. ELIGIBILITY.

    (a) In General.--Section 292 of the Trade Act of 1974 (19 U.S.C. 
2401a) is amended by striking subsections (c) through (e) and inserting 
the following:
    ``(c) Group Eligibility Requirements.--The Secretary shall certify 
a group of agricultural commodity producers as eligible to apply for 
adjustment assistance under this chapter if the Secretary determines 
that--
        ``(1)(A) the national average price of the agricultural 
    commodity produced by the group during the most recent marketing 
    year for which data are available is less than 85 percent of the 
    average of the national average price for the commodity in the 3 
    marketing years preceding such marketing year;
        ``(B) the quantity of production of the agricultural commodity 
    produced by the group during such marketing year is less than 85 
    percent of the average of the quantity of production of the 
    commodity produced by the group in the 3 marketing years preceding 
    such marketing year;
        ``(C) the value of production of the agricultural commodity 
    produced by the group during such marketing year is less than 85 
    percent of the average value of production of the commodity 
    produced by the group in the 3 marketing years preceding such 
    marketing year; or
        ``(D) the cash receipts for the agricultural commodity produced 
    by the group during such marketing year are less than 85 percent of 
    the average of the cash receipts for the commodity produced by the 
    group in the 3 marketing years preceding such marketing year;
        ``(2) the volume of imports of articles like or directly 
    competitive with the agricultural commodity produced by the group 
    in the marketing year with respect to which the group files the 
    petition increased compared to the average volume of such imports 
    during the 3 marketing years preceding such marketing year; and
        ``(3) the increase in such imports contributed importantly to 
    the decrease in the national average price, quantity of production, 
    or value of production of, or cash receipts for, the agricultural 
    commodity, as described in paragraph (1).
    ``(d) Eligibility of Certain Other Producers.--An agricultural 
commodity producer or group of producers that resides outside of the 
State or region identified in the petition filed under subsection (a) 
may file a request to become a party to that petition not later than 15 
days after the date the notice is published in the Federal Register 
under subsection (a) with respect to that petition.
    ``(e) Treatment of Classes of Goods Within a Commodity.--In any 
case in which there are separate classes of goods within an 
agricultural commodity, the Secretary shall treat each class as a 
separate commodity in determining under subsection (c)--
        ``(1) group eligibility;
        ``(2) the national average price, quantity of production, or 
    value of production, or cash receipts; and
        ``(3) the volume of imports.''.
    (b) Conforming Amendments.--Section 293 of the Trade Act of 1974 
(19 U.S.C. 2401b) is amended--
        (1) in subsection (a), by striking ``section 292 (c) or (d), as 
    the case may be,'' and inserting ``section 292(c)''; and
        (2) in subsection (c), by striking ``decline in price for'' and 
    inserting ``decrease in the national average price, quantity of 
    production, or value of production of, or cash receipts for,''.

SEC. 1883. BENEFITS.

    (a) In General.--Section 296 of the Trade Act of 1974 (19 U.S.C. 
2401e) is amended to read as follows:

``SEC. 296. QUALIFYING REQUIREMENTS AND BENEFITS FOR AGRICULTURAL 
              COMMODITY PRODUCERS.

    ``(a) In General.--
        ``(1) Requirements.--
            ``(A) In general.--Benefits under this chapter shall be 
        available to an agricultural commodity producer covered by a 
        certification under this chapter who files an application for 
        such benefits not later than 90 days after the date on which 
        the Secretary makes a determination and issues a certification 
        of eligibility under section 293, if the producer submits to 
        the Secretary sufficient information to establish that--
                ``(i) the producer produced the agricultural commodity 
            covered by the application filed under this subsection in 
            the marketing year with respect to which the petition is 
            filed and in at least 1 of the 3 marketing years preceding 
            that marketing year;
                ``(ii)(I) the quantity of the agricultural commodity 
            that was produced by the producer in the marketing year 
            with respect to which the petition is filed has decreased 
            compared to the most recent marketing year preceding that 
            marketing year for which data are available; or
                ``(II)(aa) the price received for the agricultural 
            commodity by the producer during the marketing year with 
            respect to which the petition is filed has decreased 
            compared to the average price for the commodity received by 
            the producer in the 3 marketing years preceding that 
            marketing year; or
                ``(bb) the county level price maintained by the 
            Secretary for the agricultural commodity on the date on 
            which the petition is filed has decreased compared to the 
            average county level price for the commodity in the 3 
            marketing years preceding the date on which the petition is 
            filed; and
                ``(iii) the producer is not receiving--

                    ``(I) cash benefits under chapter 2 or 3; or
                    ``(II) benefits based on the production of an 
                agricultural commodity covered by another petition 
                filed under this chapter.

            ``(B) Special rule with respect to crops not grown every 
        year.--For purposes of subparagraph (A)(ii)(II)(aa), if a 
        petition is filed with respect to an agricultural commodity 
        that is not produced by the producer every year, an 
        agricultural commodity producer producing that commodity may 
        establish the average price received for the commodity by the 
        producer in the 3 marketing years preceding the year with 
        respect to which the petition is filed by using average price 
        data for the 3 most recent marketing years in which the 
        producer produced the commodity and for which data are 
        available.
        ``(2) Limitations based on adjusted gross income.--
            ``(A) In general.--Notwithstanding any other provision of 
        this chapter, an agricultural commodity producer shall not be 
        eligible for assistance under this chapter in any year in which 
        the average adjusted gross income (as defined in section 
        1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308-
        3a(a))) of the producer exceeds the level set forth in 
        subparagraph (A) or (B) of section 1001D(b)(1) of the Food 
        Security Act of 1985 (7 U.S.C. 1308-3a(b)(1)), whichever is 
        applicable.
            ``(B) Demonstration of compliance.--An agricultural 
        commodity producer shall provide to the Secretary such 
        information as the Secretary determines necessary to 
        demonstrate that the producer is in compliance with the 
        limitation under subparagraph (A).
            ``(C) Counter-cyclical and acre payments.--The total amount 
        of payments made to an agricultural commodity producer under 
        this chapter during any crop year may not exceed the 
        limitations on payments set forth in subsections (b)(2), 
        (b)(3), (c)(2), and (c)(3) of section 1001 of the Food Security 
        Act of 1985 (7 U.S.C. 1308).
    ``(b) Technical Assistance.--
        ``(1) Initial technical assistance.--
            ``(A) In general.--An agricultural commodity producer that 
        files an application and meets the requirements under 
        subsection (a)(1) shall be entitled to receive initial 
        technical assistance designed to improve the competitiveness of 
        the production and marketing of the agricultural commodity with 
        respect to which the producer was certified under this chapter. 
        Such assistance shall include information regarding--
                ``(i) improving the yield and marketing of that 
            agricultural commodity; and
                ``(ii) the feasibility and desirability of substituting 
            one or more alternative agricultural commodities for that 
            agricultural commodity.
            ``(B) Transportation and subsistence expenses.--
                ``(i) In general.--The Secretary may authorize 
            supplemental assistance necessary to defray reasonable 
            transportation and subsistence expenses incurred by an 
            agricultural commodity producer in connection with initial 
            technical assistance under subparagraph (A) if such 
            assistance is provided at facilities that are not within 
            normal commuting distance of the regular place of residence 
            of the producer.
                ``(ii) Exceptions.--The Secretary may not authorize 
            payments to an agricultural commodity producer under clause 
            (i)--

                    ``(I) for subsistence expenses that exceed the 
                lesser of--

                        ``(aa) the actual per diem expenses for 
                    subsistence incurred by the producer; or
                        ``(bb) the prevailing per diem allowance rate 
                    authorized under Federal travel regulations; or

                    ``(II) for travel expenses that exceed the 
                prevailing mileage rate authorized under the Federal 
                travel regulations.

        ``(2) Intensive technical assistance.--A producer that has 
    completed initial technical assistance under paragraph (1) shall be 
    eligible to participate in intensive technical assistance. Such 
    assistance shall consist of--
            ``(A) a series of courses to further assist the producer in 
        improving the competitiveness of the producer in producing--
                ``(i) the agricultural commodity with respect to which 
            the producer was certified under this chapter; or
                ``(ii) another agricultural commodity; and
            ``(B) assistance in developing an initial business plan 
        based on the courses completed under subparagraph (A).
        ``(3) Initial business plan.--
            ``(A) Approval by secretary.--The Secretary shall approve 
        an initial business plan developed under paragraph (2)(B) if 
        the plan--
                ``(i) reflects the skills gained by the producer 
            through the courses described in paragraph (2)(A); and
                ``(ii) demonstrates how the producer will apply those 
            skills to the circumstances of the producer.
            ``(B) Financial assistance for implementing initial 
        business plan.--Upon approval of the producer's initial 
        business plan by the Secretary under subparagraph (A), a 
        producer shall be entitled to an amount not to exceed $4,000 
        to--
                ``(i) implement the initial business plan; or
                ``(ii) develop a long-term business adjustment plan 
            under paragraph (4).
        ``(4) Long-term business adjustment plan.--
            ``(A) In general.--A producer that has completed intensive 
        technical assistance under paragraph (2) and whose initial 
        business plan has been approved under paragraph (3)(A) shall be 
        eligible for, in addition to the amount under subparagraph (C), 
        assistance in developing a long-term business adjustment plan.
            ``(B) Approval of long-term business adjustment plans.--The 
        Secretary shall approve a long-term business adjustment plan 
        developed under subparagraph (A) if the Secretary determines 
        that the plan--
                ``(i) includes steps reasonably calculated to 
            materially contribute to the economic adjustment of the 
            producer to changing market conditions;
                ``(ii) takes into consideration the interests of the 
            workers employed by the producer; and
                ``(iii) demonstrates that the producer will have 
            sufficient resources to implement the business plan.
            ``(C) Plan implementation.--Upon approval of the producer's 
        long-term business adjustment plan under subparagraph (B), a 
        producer shall be entitled to an amount not to exceed $8,000 to 
        implement the long-term business adjustment plan.
    ``(c) Maximum Amount of Assistance.--An agricultural commodity 
producer may receive not more than $12,000 under paragraphs (3) and (4) 
of subsection (b) in the 36-month period following certification under 
section 293.
    ``(d) Limitations on Other Assistance.--An agricultural commodity 
producer that receives benefits under this chapter (other than initial 
technical assistance under subsection (b)(1)) shall not be eligible for 
cash benefits under chapter 2 or 3.''.
    (b) Clerical Amendment.--The table of contents of the Trade Act of 
1974 is amended by striking the item relating to section 296 and 
inserting the following:
``Sec. 296. Qualifying requirements and benefits for agricultural 
          commodity producers.''.

SEC. 1884. REPORT.

    Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended 
by adding at the end the following:
    ``(d) Report by the Secretary.--Not later than January 30, 2010, 
and annually thereafter, the Secretary of Agriculture shall submit to 
the Committee on Finance of the Senate and the Committee on Ways and 
Means of the House of Representatives a report containing the following 
information with respect to adjustment assistance provided under this 
chapter during the preceding fiscal year:
        ``(1) A list of the agricultural commodities covered by a 
    certification under this chapter.
        ``(2) The States or regions in which such commodities are 
    produced and the aggregate amount of such commodities produced in 
    each such State or region.
        ``(3) The total number of agricultural commodity producers, by 
    congressional district, receiving benefits under this chapter.
        ``(4) The total number of agricultural commodity producers, by 
    congressional district, receiving technical assistance under this 
    chapter.''.

SEC. 1885. FRAUD AND RECOVERY OF OVERPAYMENTS.

    Section 297(a)(1) of the Trade Act of 1974 (19 U.S.C. 2401f(a)(1)) 
is amended by inserting ``or has expended funds received under this 
chapter for a purpose that was not approved by the Secretary,'' after 
``entitled,''.

SEC. 1886. DETERMINATION OF INCREASES OF IMPORTS FOR CERTAIN FISHERMEN.

    For purposes of chapters 2 and 6 of title II of the Trade Act of 
1974 (19 U.S.C. 2251 et seq.), in the case of an agricultural commodity 
producer that--
        (1) is a fisherman or aquaculture producer, and
        (2) is otherwise eligible for adjustment assistance under 
    chapter 2 or 6, as the case may be,
the increase in imports of articles like or directly competitive with 
the agricultural commodity produced by such producer may be based on 
imports of wild-caught seafood, farm-raised seafood, or both.

SEC. 1887. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.

    Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is 
amended by striking ``fiscal years 2003 through 2007'' and all that 
follows through the end period and inserting ``fiscal years 2009 and 
2010, and $22,500,000 for the period beginning October 1, 2010, and 
ending December 31, 2010, to carry out the purposes of this chapter, 
including administrative costs, and salaries and expenses of employees 
of the Department of Agriculture.''.

                       PART V--GENERAL PROVISIONS

SEC. 1891. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this subtitle, and 
subsection (b) of this section, this subtitle and the amendments made 
by this subtitle--
        (1) shall take effect upon the expiration of the 90-day period 
    beginning on the date of the enactment of this Act; and
        (2) shall apply to--
            (A) petitions for certification filed under chapter 2, 3, 
        or 6 of title II of the Trade Act of 1974 on or after the 
        effective date described in paragraph (1); and
            (B) petitions for assistance and proposals for grants filed 
        under chapter 4 of title II of the Trade Act of 1974 on or 
        after such effective date.
    (b) Certifications Made Before Effective Date.--Notwithstanding 
subsection (a)--
        (1) a worker shall continue to receive (or be eligible to 
    receive) trade adjustment assistance and other benefits under 
    subchapter B of chapter 2 of title II of the Trade Act of 1974, as 
    in effect on the day before the effective date described in 
    subsection (a)(1), for any week for which the worker meets the 
    eligibility requirements of such chapter 2 as in effect on the day 
    before such effective date, if the worker--
            (A) is certified as eligible for trade adjustment 
        assistance benefits under such chapter 2 pursuant to a petition 
        filed under section 221 of the Trade Act of 1974 on or before 
        such effective date; and
            (B) would otherwise be eligible to receive trade adjustment 
        assistance benefits under such chapter as in effect on the day 
        before such effective date;
        (2) a worker shall continue to receive (or be eligible to 
    receive) benefits under section 246(a)(2) of the Trade Act of 1974, 
    as in effect on the day before the effective date described in 
    subsection (a)(1), for such period for which the worker meets the 
    eligibility requirements of section 246 of that Act as in effect on 
    the day before such effective date, if the worker--
            (A) is certified as eligible for benefits under such 
        section 246 pursuant to a petition filed under section 221 of 
        the Trade Act of 1974 on or before such effective date; and
            (B) would otherwise be eligible to receive benefits under 
        such section 246(a)(2) as in effect on the day before such 
        effective date; and
        (3) a firm shall continue to receive (or be eligible to 
    receive) adjustment assistance under chapter 3 of title II of the 
    Trade Act of 1974, as in effect on the day before the effective 
    date described in subsection (a)(1), for such period for which the 
    firm meets the eligibility requirements of such chapter 3 as in 
    effect on the day before such effective date, if the firm--
            (A) is certified as eligible for benefits under such 
        chapter 3 pursuant to a petition filed under section 251 of the 
        Trade Act of 1974 on or before such effective date; and
            (B) would otherwise be eligible to receive benefits under 
        such chapter 3 as in effect on the day before such effective 
        date.

SEC. 1892. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAMS.

    (a) For Workers.--Section 245(a) of the Trade Act of 1974 (19 
U.S.C. 2317(a)) is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2010''.
    (b) Termination.--Section 285 of the Trade Act of 1974 (19 U.S.C. 
2271 note prec.) is amended--
        (1) in subsection (a), by striking ``December 31, 2007'' each 
    place it appears and inserting ``December 31, 2010''; and
        (2) by amending subsection (b) to read as follows:
    ``(b) Other Assistance.--
        ``(1) Assistance for firms.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        technical assistance and grants may not be provided under 
        chapter 3 after December 31, 2010.
            ``(B) Exception.--Notwithstanding subparagraph (A), any 
        technical assistance or grant approved under chapter 3 on or 
        before December 31, 2010, may be provided--
                ``(i) to the extent funds are available pursuant to 
            such chapter for such purpose; and
                ``(ii) to the extent the recipient of the technical 
            assistance or grant is otherwise eligible to receive such 
            technical assistance or grant, as the case may be.
        ``(2) Farmers.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        technical assistance and financial assistance may not be 
        provided under chapter 6 after December 31, 2010.
            ``(B) Exception.--Notwithstanding subparagraph (A), any 
        technical or financial assistance approved under chapter 6 on 
        or before December 31, 2010, may be provided--
                ``(i) to the extent funds are available pursuant to 
            such chapter for such purpose; and
                ``(ii) to the extent the recipient of the technical or 
            financial assistance is otherwise eligible to receive such 
            technical or financial assistance, as the case may be.
        ``(3) Assistance for communities.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        technical assistance and grants may not be provided under 
        chapter 4 after December 31, 2010.
            ``(B) Exception.--Notwithstanding subparagraph (A), any 
        technical assistance or grant approved under chapter 4 on or 
        before December 31, 2010, may be provided--
                ``(i) to the extent funds are available pursuant to 
            such chapter for such purpose; and
                ``(ii) to the extent the recipient of the technical 
            assistance or grant is otherwise eligible to receive such 
            technical assistance or grant, as the case may be.''.

SEC. 1893. TERMINATION; RELATED PROVISIONS.

    (a) Sunset.--
        (1) In general.--Subject to paragraph (2), the amendments made 
    by this subtitle to chapters 2, 3, 4, 5, and 6 of title II of the 
    Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall not apply on or 
    after January 1, 2011.
        (2) Exception.--The amendments made by this subtitle to section 
    285 of the Trade Act of 1974 shall continue to apply on and after 
    January 1, 2011, with respect to--
            (A) workers certified as eligible for trade adjustment 
        assistance benefits under chapter 2 of title II of that Act 
        pursuant to petitions filed under section 221 of that Act 
        before January 1, 2011;
            (B) firms certified as eligible for technical assistance or 
        grants under chapter 3 of title II of that Act pursuant to 
        petitions filed under section 251 of that Act before January 1, 
        2011;
            (C) recipients approved for technical assistance or grants 
        under chapter 4 of title II of that Act pursuant to petitions 
        for assistance or proposals for grants (as the case may be) 
        filed pursuant to such chapter before January 1, 2011; and
            (D) agricultural commodity producers certified as eligible 
        for technical or financial assistance under chapter 6 of title 
        II of that Act pursuant to petitions filed under section 292 of 
        that Act before January 1, 2011.
    (b) Application of Prior Law.--Chapters 2, 3, 4, 5, and 6 of title 
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall be applied 
and administered beginning January 1, 2011, as if the amendments made 
by this subtitle (other than part VI) had never been enacted, except 
that in applying and administering such chapters--
        (1) section 245 of that Act shall be applied and administered 
    by substituting ``2011'' for ``2007'';
        (2) section 246(b) of that Act shall be applied and 
    administered by substituting ``December 31, 2011'' for ``the date 
    that is 5 years'' and all that follows through ``State'';
        (3) section 256(b) of that Act shall be applied and 
    administered by substituting ``the 1-year period beginning January 
    1, 2011'' for ``each of fiscal years 2003 through 2007, and 
    $4,000,000 for the 3-month period beginning October 1, 2007'';
        (4) section 298(a) of that Act shall be applied and 
    administered by substituting ``the 1-year period beginning January 
    1, 2011'' for ``each of the fiscal years'' and all that follows 
    through ``October 1, 2007''; and
        (5) subject to subsection (a)(2), section 285 of that Act shall 
    be applied and administered--
            (A) in subsection (a), by substituting ``2011'' for 
        ``2007'' each place it appears; and
            (B) by applying and administering subsection (b) as if it 
        read as follows:
    ``(b) Other Assistance.--
        ``(1) Assistance for firms.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        assistance may not be provided under chapter 3 after December 
        31, 2011.
            ``(B) Exception.--Notwithstanding subparagraph (A), any 
        assistance approved under chapter 3 on or before December 31, 
        2011, may be provided--
                ``(i) to the extent funds are available pursuant to 
            such chapter for such purpose; and
                ``(ii) to the extent the recipient of the assistance is 
            otherwise eligible to receive such assistance.
        ``(2) Farmers.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        assistance may not be provided under chapter 6 after December 
        31, 2011.
            ``(B) Exception.--Notwithstanding subparagraph (A), any 
        assistance approved under chapter 6 on or before December 31, 
        2011, may be provided--
                ``(i) to the extent funds are available pursuant to 
            such chapter for such purpose; and
                ``(ii) to the extent the recipient of the assistance is 
            otherwise eligible to receive such assistance.''.

SEC. 1894. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.

    Not later than September 30, 2012, the Comptroller General of the 
United States shall prepare and submit to the Committee on Finance of 
the Senate and the Committee on Ways and Means of the House of 
Representatives a comprehensive report on the operation and 
effectiveness of the amendments made by this subtitle to chapters 2, 3, 
4, and 6 of the Trade Act of 1974.

SEC. 1895. EMERGENCY DESIGNATION.

    Amounts appropriated pursuant to this subtitle are designated as an 
emergency requirement and necessary to meet emergency needs pursuant to 
section 204(a) of S. Con. Res. 21 (110th Congress) and section 
301(b)(2) of S. Con. Res. 70 (110th Congress), the concurrent 
resolutions on the budget for fiscal years 2008 and 2009.

                  PART VI--HEALTH COVERAGE IMPROVEMENT

SEC. 1899. SHORT TITLE.

    This part may be cited as the ``TAA Health Coverage Improvement Act 
of 2009''.

SEC. 1899A. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT.

    (a) Improvement of Affordability.--
        (1) In general.--Section 35(a) of the Internal Revenue Code of 
    1986 (relating to credit for health insurance costs of eligible 
    individuals) is amended by inserting ``(80 percent in the case of 
    eligible coverage months beginning before January 1, 2011)'' after 
    ``65 percent''.
        (2) Conforming amendment.--Section 7527(b) of such Code 
    (relating to advance payment of credit for health insurance costs 
    of eligible individuals) is amended by inserting ``(80 percent in 
    the case of eligible coverage months beginning before January 1, 
    2011)'' after ``65 percent''.
    (b) Effective Date.--The amendments made by this section shall 
apply to coverage months beginning on or after the first day of the 
first month beginning 60 days after the date of the enactment of this 
Act.

SEC. 1899B. PAYMENT FOR MONTHLY PREMIUMS PAID PRIOR TO COMMENCEMENT OF 
              ADVANCE PAYMENTS OF CREDIT.

    (a) Payment for Premiums Due Prior to Commencement of Advance 
Payments of Credit.--Section 7527 of the Internal Revenue Code of 1986 
(relating to advance payment of credit for health insurance costs of 
eligible individuals) is amended by adding at the end the following new 
subsection:
    ``(e) Payment for Premiums Due Prior to Commencement of Advance 
Payments.--In the case of eligible coverage months beginning before 
January 1, 2011--
        ``(1) In general.--The program established under subsection (a) 
    shall provide that the Secretary shall make 1 or more retroactive 
    payments on behalf of a certified individual in an aggregate amount 
    equal to 80 percent of the premiums for coverage of the taxpayer 
    and qualifying family members under qualified health insurance for 
    eligible coverage months (as defined in section 35(b)) occurring 
    prior to the first month for which an advance payment is made on 
    behalf of such individual under subsection (a).
        ``(2) Reduction of payment for amounts received under national 
    emergency grants.--The amount of any payment determined under 
    paragraph (1) shall be reduced by the amount of any payment made to 
    the taxpayer for the purchase of qualified health insurance under a 
    national emergency grant pursuant to section 173(f) of the 
    Workforce Investment Act of 1998 for a taxable year including the 
    eligible coverage months described in paragraph (1).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to coverage months beginning after December 31, 2008.
    (c) Transitional Rule.--The Secretary of the Treasury shall not be 
required to make any payments under section 7527(e) of the Internal 
Revenue Code of 1986, as added by this section, until after the date 
that is 6 months after the date of the enactment of this Act.

SEC. 1899C. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS ELIGIBLE 
              FOR CREDIT.

    (a) In General.--Paragraph (2) of section 35(c) of the Internal 
Revenue Code of 1986 (defining eligible TAA recipient) is amended to 
read as follows:
        ``(2) Eligible taa recipient.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the term `eligible TAA recipient' means, with respect to any 
        month, any individual who is receiving for any day of such 
        month a trade readjustment allowance under chapter 2 of title 
        II of the Trade Act of 1974 or who would be eligible to receive 
        such allowance if section 231 of such Act were applied without 
        regard to subsection (a)(3)(B) of such section. An individual 
        shall continue to be treated as an eligible TAA recipient 
        during the first month that such individual would otherwise 
        cease to be an eligible TAA recipient by reason of the 
        preceding sentence.
            ``(B) Special rule.--In the case of any eligible coverage 
        month beginning after the date of the enactment of this 
        paragraph and before January 1, 2011, the term `eligible TAA 
        recipient' means, with respect to any month, any individual 
        who--
                ``(i) is receiving for any day of such month a trade 
            readjustment allowance under chapter 2 of title II of the 
            Trade Act of 1974,
                ``(ii) would be eligible to receive such allowance 
            except that such individual is in a break in training 
            provided under a training program approved under section 
            236 of such Act that exceeds the period specified in 
            section 233(e) of such Act, but is within the period for 
            receiving such allowances provided under section 233(a) of 
            such Act, or
                ``(iii) is receiving unemployment compensation (as 
            defined in section 85(b)) for any day of such month and who 
            would be eligible to receive such allowance for such month 
            if section 231 of such Act were applied without regard to 
            subsections (a)(3)(B) and (a)(5) thereof.
        An individual shall continue to be treated as an eligible TAA 
        recipient during the first month that such individual would 
        otherwise cease to be an eligible TAA recipient by reason of 
        the preceding sentence.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to coverage months beginning after the date of the enactment of this 
Act.

SEC. 1899D. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF 
              DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE 
              COVERAGE.

    (a) IRC Amendment.--Section 9801(c)(2) of the Internal Revenue Code 
of 1986 (relating to not counting periods before significant breaks in 
creditable coverage) is amended by adding at the end the following new 
subparagraph:
            ``(D) TAA-eligible individuals.--In the case of plan years 
        beginning before January 1, 2011--
                ``(i) TAA pre-certification period rule.--In the case 
            of a TAA-eligible individual, the period beginning on the 
            date the individual has a TAA-related loss of coverage and 
            ending on the date which is 7 days after the date of the 
            issuance by the Secretary (or by any person or entity 
            designated by the Secretary) of a qualified health 
            insurance costs credit eligibility certificate for such 
            individual for purposes of section 7527 shall not be taken 
            into account in determining the continuous period under 
            subparagraph (A).
                ``(ii) Definitions.--The terms `TAA-eligible 
            individual' and `TAA-related loss of coverage' have the 
            meanings given such terms in section 4980B(f)(5)(C)(iv).''.
    (b) ERISA Amendment.--Section 701(c)(2) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding 
at the end the following new subparagraph:
            ``(C) TAA-eligible individuals.--In the case of plan years 
        beginning before January 1, 2011--
                ``(i) TAA pre-certification period rule.--In the case 
            of a TAA-eligible individual, the period beginning on the 
            date the individual has a TAA-related loss of coverage and 
            ending on the date that is 7 days after the date of the 
            issuance by the Secretary (or by any person or entity 
            designated by the Secretary) of a qualified health 
            insurance costs credit eligibility certificate for such 
            individual for purposes of section 7527 of the Internal 
            Revenue Code of 1986 shall not be taken into account in 
            determining the continuous period under subparagraph (A).
                ``(ii) Definitions.--The terms `TAA-eligible 
            individual' and `TAA-related loss of coverage' have the 
            meanings given such terms in section 605(b)(4).''.
    (c) PHSA Amendment.--Section 2701(c)(2) of the Public Health 
Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the 
following new subparagraph:
            ``(C) TAA-eligible individuals.--In the case of plan years 
        beginning before January 1, 2011--
                ``(i) TAA pre-certification period rule.--In the case 
            of a TAA-eligible individual, the period beginning on the 
            date the individual has a TAA-related loss of coverage and 
            ending on the date that is 7 days after the date of the 
            issuance by the Secretary (or by any person or entity 
            designated by the Secretary) of a qualified health 
            insurance costs credit eligibility certificate for such 
            individual for purposes of section 7527 of the Internal 
            Revenue Code of 1986 shall not be taken into account in 
            determining the continuous period under subparagraph (A).
                ``(ii) Definitions.--The terms `TAA-eligible 
            individual' and `TAA-related loss of coverage' have the 
            meanings given such terms in section 2205(b)(4).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after the date of the enactment of this 
Act.

SEC. 1899E. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN 
              EVENTS.

    (a) In General.--Subsection (g) of section 35 of such Code is 
amended by redesignating paragraph (9) as paragraph (10) and inserting 
after paragraph (8) the following new paragraph:
        ``(9) Continued qualification of family members after certain 
    events.--In the case of eligible coverage months beginning before 
    January 1, 2011--
            ``(A) Medicare eligibility.--In the case of any month which 
        would be an eligible coverage month with respect to an eligible 
        individual but for subsection (f)(2)(A), such month shall be 
        treated as an eligible coverage month with respect to such 
        eligible individual solely for purposes of determining the 
        amount of the credit under this section with respect to any 
        qualifying family members of such individual (and any advance 
        payment of such credit under section 7527). This subparagraph 
        shall only apply with respect to the first 24 months after such 
        eligible individual is first entitled to the benefits described 
        in subsection (f)(2)(A).
            ``(B) Divorce.--In the case of the finalization of a 
        divorce between an eligible individual and such individual's 
        spouse, such spouse shall be treated as an eligible individual 
        for purposes of this section and section 7527 for a period of 
        24 months beginning with the date of such finalization, except 
        that the only qualifying family members who may be taken into 
        account with respect to such spouse are those individuals who 
        were qualifying family members immediately before such 
        finalization.
            ``(C) Death.--In the case of the death of an eligible 
        individual--
                ``(i) any spouse of such individual (determined at the 
            time of such death) shall be treated as an eligible 
            individual for purposes of this section and section 7527 
            for a period of 24 months beginning with the date of such 
            death, except that the only qualifying family members who 
            may be taken into account with respect to such spouse are 
            those individuals who were qualifying family members 
            immediately before such death, and
                ``(ii) any individual who was a qualifying family 
            member of the decedent immediately before such death (or, 
            in the case of an individual to whom paragraph (4) applies, 
            the taxpayer to whom the deduction under section 151 is 
            allowable) shall be treated as an eligible individual for 
            purposes of this section and section 7527 for a period of 
            24 months beginning with the date of such death, except 
            that in determining the amount of such credit only such 
            qualifying family member may be taken into account.''.
    (b) Conforming Amendment.--Section 173(f) of the Workforce 
Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the 
end the following:
        ``(8) Continued qualification of family members after certain 
    events.--In the case of eligible coverage months beginning before 
    January 1, 2011--
            ``(A) Medicare eligibility.--In the case of any month which 
        would be an eligible coverage month with respect to an eligible 
        individual but for paragraph (7)(B)(i), such month shall be 
        treated as an eligible coverage month with respect to such 
        eligible individual solely for purposes of determining the 
        eligibility of qualifying family members of such individual 
        under this subsection. This subparagraph shall only apply with 
        respect to the first 24 months after such eligible individual 
        is first entitled to the benefits described in paragraph 
        (7)(B)(i).
            ``(B) Divorce.--In the case of the finalization of a 
        divorce between an eligible individual and such individual's 
        spouse, such spouse shall be treated as an eligible individual 
        for purposes of this subsection for a period of 24 months 
        beginning with the date of such finalization, except that the 
        only qualifying family members who may be taken into account 
        with respect to such spouse are those individuals who were 
        qualifying family members immediately before such finalization.
            ``(C) Death.--In the case of the death of an eligible 
        individual--
                ``(i) any spouse of such individual (determined at the 
            time of such death) shall be treated as an eligible 
            individual for purposes of this subsection for a period of 
            24 months beginning with the date of such death, except 
            that the only qualifying family members who may be taken 
            into account with respect to such spouse are those 
            individuals who were qualifying family members immediately 
            before such death, and
                ``(ii) any individual who was a qualifying family 
            member of the decedent immediately before such death shall 
            be treated as an eligible individual for purposes this 
            subsection for a period of 24 months beginning with the 
            date of such death, except that no qualifying family 
            members may be taken into account with respect to such 
            individual.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to months beginning after December 31, 2009.

SEC. 1899F. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE 
              INDIVIDUALS AND PBGC RECIPIENTS.

    (a) ERISA Amendments.--Section 602(2)(A) of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) is amended--
        (1) by moving clause (v) to after clause (iv) and before the 
    flush left sentence beginning with ``In the case of a qualified 
    beneficiary'';
        (2) by striking ``In the case of a qualified beneficiary'' and 
    inserting the following:
                ``(vi) Special rule for disability.--In the case of a 
            qualified beneficiary''; and
        (3) by redesignating clauses (v) and (vi), as amended by 
    paragraphs (1) and (2), as clauses (vii) and (viii), respectively, 
    and by inserting after clause (iv) the following new clauses:
                ``(v) Special rule for pbgc recipients.--In the case of 
            a qualifying event described in section 603(2) with respect 
            to a covered employee who (as of such qualifying event) has 
            a nonforfeitable right to a benefit any portion of which is 
            to be paid by the Pension Benefit Guaranty Corporation 
            under title IV, notwithstanding clause (i) or (ii), the 
            date of the death of the covered employee, or in the case 
            of the surviving spouse or dependent children of the 
            covered employee, 24 months after the date of the death of 
            the covered employee. The preceding sentence shall not 
            require any period of coverage to extend beyond December 
            31, 2010.
                ``(vi) Special rule for taa-eligible individuals.--In 
            the case of a qualifying event described in section 603(2) 
            with respect to a covered employee who is (as of the date 
            that the period of coverage would, but for this clause or 
            clause (vii), otherwise terminate under clause (i) or (ii)) 
            a TAA-eligible individual (as defined in section 
            605(b)(4)(B)), the period of coverage shall not terminate 
            by reason of clause (i) or (ii), as the case may be, before 
            the later of the date specified in such clause or the date 
            on which such individual ceases to be such a TAA-eligible 
            individual. The preceding sentence shall not require any 
            period of coverage to extend beyond December 31, 2010.''.
    (b) IRC Amendments.--Clause (i) of section 4980B(f)(2)(B) of the 
Internal Revenue Code of 1986 is amended--
        (1) by striking ``In the case of a qualified beneficiary'' and 
    inserting the following:

                    ``(VI) Special rule for disability.--In the case of 
                a qualified beneficiary'', and

        (2) by redesignating subclauses (V) and (VI), as amended by 
    paragraph (1), as subclauses (VII) and (VIII), respectively, and by 
    inserting after clause (IV) the following new subclauses:

                    ``(V) Special rule for pbgc recipients.--In the 
                case of a qualifying event described in paragraph 
                (3)(B) with respect to a covered employee who (as of 
                such qualifying event) has a nonforfeitable right to a 
                benefit any portion of which is to be paid by the 
                Pension Benefit Guaranty Corporation under title IV of 
                the Employee Retirement Income Security Act of 1974, 
                notwithstanding subclause (I) or (II), the date of the 
                death of the covered employee, or in the case of the 
                surviving spouse or dependent children of the covered 
                employee, 24 months after the date of the death of the 
                covered employee. The preceding sentence shall not 
                require any period of coverage to extend beyond 
                December 31, 2010.
                    ``(VI) Special rule for taa-eligible individuals.--
                In the case of a qualifying event described in 
                paragraph (3)(B) with respect to a covered employee who 
                is (as of the date that the period of coverage would, 
                but for this subclause or subclause (VII), otherwise 
                terminate under subclause (I) or (II)) a TAA-eligible 
                individual (as defined in paragraph (5)(C)(iv)(II)), 
                the period of coverage shall not terminate by reason of 
                subclause (I) or (II), as the case may be, before the 
                later of the date specified in such subclause or the 
                date on which such individual ceases to be such a TAA-
                eligible individual. The preceding sentence shall not 
                require any period of coverage to extend beyond 
                December 31, 2010.''.

    (c) PHSA Amendments.--Section 2202(2)(A) of the Public Health 
Service Act (42 U.S.C. 300bb-2(2)(A)) is amended--
        (1) by striking ``In the case of a qualified beneficiary'' and 
    inserting the following:
                ``(v) Special rule for disability.--In the case of a 
            qualified beneficiary''; and
        (2) by redesignating clauses (iv) and (v), as amended by 
    paragraph (1), as clauses (v) and (vi), respectively, and by 
    inserting after clause (iii) the following new clause:
                ``(iv) Special rule for taa-eligible individuals.--In 
            the case of a qualifying event described in section 2203(2) 
            with respect to a covered employee who is (as of the date 
            that the period of coverage would, but for this clause or 
            clause (v), otherwise terminate under clause (i) or (ii)) a 
            TAA-eligible individual (as defined in section 
            2205(b)(4)(B)), the period of coverage shall not terminate 
            by reason of clause (i) or (ii), as the case may be, before 
            the later of the date specified in such clause or the date 
            on which such individual ceases to be such a TAA-eligible 
            individual. The preceding sentence shall not require any 
            period of coverage to extend beyond December 31, 2010.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods of coverage which would (without regard to the 
amendments made by this section) end on or after the date of the 
enactment of this Act.

SEC. 1899G. ADDITION OF COVERAGE THROUGH VOLUNTARY EMPLOYEES' 
              BENEFICIARY ASSOCIATIONS.

    (a) In General.--Paragraph (1) of section 35(e) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
            ``(K) In the case of eligible coverage months beginning 
        before January 1, 2011, coverage under an employee benefit plan 
        funded by a voluntary employees' beneficiary association (as 
        defined in section 501(c)(9)) established pursuant to an order 
        of a bankruptcy court, or by agreement with an authorized 
        representative, as provided in section 1114 of title 11, United 
        States Code.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to coverage months beginning after the date of the enactment of 
this Act.

SEC. 1899H. NOTICE REQUIREMENTS.

    (a) In General.--Subsection (d) of section 7527 of the Internal 
Revenue Code of 1986 (relating to qualified health insurance costs 
credit eligibility certificate) is amended to read as follows:
    ``(d) Qualified Health Insurance Costs Eligibility Certificate.--
        ``(1) In general.--For purposes of this section, the term 
    `qualified health insurance costs eligibility certificate' means 
    any written statement that an individual is an eligible individual 
    (as defined in section 35(c)) if such statement provides such 
    information as the Secretary may require for purposes of this 
    section and--
            ``(A) in the case of an eligible TAA recipient (as defined 
        in section 35(c)(2)) or an eligible alternative TAA recipient 
        (as defined in section 35(c)(3)), is certified by the Secretary 
        of Labor (or by any other person or entity designated by the 
        Secretary), or
            ``(B) in the case of an eligible PBGC pension recipient (as 
        defined in section 35(c)(4)), is certified by the Pension 
        Benefit Guaranty Corporation (or by any other person or entity 
        designated by the Secretary).
        ``(2) Inclusion of certain information.--In the case of any 
    statement described in paragraph (1) which is issued before January 
    1, 2011, such statement shall not be treated as a qualified health 
    insurance costs credit eligibility certificate unless such 
    statement includes--
            ``(A) the name, address, and telephone number of the State 
        office or offices responsible for providing the individual with 
        assistance with enrollment in qualified health insurance (as 
        defined in section 35(e)),
            ``(B) a list of the coverage options that are treated as 
        qualified health insurance (as so defined) by the State in 
        which the individual resides, and
            ``(C) in the case of a TAA-eligible individual (as defined 
        in section 4980B(f)(5)(C)(iv)(II)), a statement informing the 
        individual that the individual has 63 days from the date that 
        is 7 days after the date of the issuance of such certificate to 
        enroll in such insurance without a lapse in creditable coverage 
        (as defined in section 9801(c)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to certificates issued after the date that is 6 months after the date 
of the enactment of this Act.

SEC. 1899I. SURVEY AND REPORT ON ENHANCED HEALTH COVERAGE TAX CREDIT 
              PROGRAM.

    (a) Survey.--
        (1) In general.--The Secretary of the Treasury shall conduct a 
    biennial survey of eligible individuals (as defined in section 
    35(c) of the Internal Revenue Code of 1986) relating to the health 
    coverage tax credit under section 35 of the Internal Revenue Code 
    of 1986 (hereinafter in this section referred to as the ``health 
    coverage tax credit'').
        (2) Information obtained.--The survey conducted under 
    subsection (a) shall obtain the following information:
            (A) HCTC participants.--In the case of eligible individuals 
        receiving the health coverage tax credit (including individuals 
        participating in the health coverage tax credit program under 
        section 7527 of such Code, hereinafter in this section referred 
        to as the ``HCTC program'')--
                (i) demographic information of such individuals, 
            including income and education levels,
                (ii) satisfaction of such individuals with the 
            enrollment process in the HCTC program,
                (iii) satisfaction of such individuals with available 
            health coverage options under the credit, including level 
            of premiums, benefits, deductibles, cost-sharing 
            requirements, and the adequacy of provider networks, and
                (iv) any other information that the Secretary 
            determines is appropriate.
            (B) Non-HCTC participants.--In the case of eligible 
        individuals not receiving the health coverage tax credit--
                (i) demographic information of each individual, 
            including income and education levels,
                (ii) whether the individual was aware of the health 
            coverage tax credit or the HCTC program,
                (iii) the reasons the individual has not enrolled in 
            the HCTC program, including whether such reasons include 
            the burden of the process of enrollment and the 
            affordability of coverage,
                (iv) whether the individual has health insurance 
            coverage, and, if so, the source of such coverage, and
                (v) any other information that the Secretary determines 
            is appropriate.
        (3) Report.--Not later than December 31 of each year in which a 
    survey is conducted under paragraph (1) (beginning in 2010), the 
    Secretary of the Treasury shall report to the Committee on Finance 
    and the Committee on Health, Education, Labor, and Pensions of the 
    Senate and the Committee on Ways and Means, the Committee on 
    Education and Labor, and the Committee on Energy and Commerce of 
    the House of Representatives the findings of the most recent survey 
    conducted under paragraph (1).
    (b) Report.--Not later than October 1 of each year (beginning in 
2010), the Secretary of the Treasury (after consultation with the 
Secretary of Health and Human Services, and, in the case of the 
information required under paragraph (7), the Secretary of Labor) shall 
report to the Committee on Finance and the Committee on Health, 
Education, Labor, and Pensions of the Senate and the Committee on Ways 
and Means, the Committee on Education and Labor, and the Committee on 
Energy and Commerce of the House of Representatives the following 
information with respect to the most recent taxable year ending before 
such date:
        (1) In each State and nationally--
            (A) the total number of eligible individuals (as defined in 
        section 35(c) of the Internal Revenue Code of 1986) and the 
        number of eligible individuals receiving the health coverage 
        tax credit,
            (B) the total number of such eligible individuals who 
        receive an advance payment of the health coverage tax credit 
        through the HCTC program,
            (C) the average length of the time period of the 
        participation of eligible individuals in the HCTC program, and
            (D) the total number of participating eligible individuals 
        in the HCTC program who are enrolled in each category of 
        coverage as described in section 35(e)(1) of such Code,
    with respect to each category of eligible individuals described in 
    section 35(c)(1) of such Code.
        (2) In each State and nationally, an analysis of--
            (A) the range of monthly health insurance premiums, for 
        self-only coverage and for family coverage, for individuals 
        receiving the health coverage tax credit, and
            (B) the average and median monthly health insurance 
        premiums, for self-only coverage and for family coverage, for 
        individuals receiving the health coverage tax credit,
    with respect to each category of coverage as described in section 
    35(e)(1) of such Code.
        (3) In each State and nationally, an analysis of the following 
    information with respect to the health insurance coverage of 
    individuals receiving the health coverage tax credit who are 
    enrolled in coverage described in subparagraphs (B) through (H) of 
    section 35(e)(1) of such Code:
            (A) Deductible amounts.
            (B) Other out-of-pocket cost-sharing amounts.
            (C) A description of any annual or lifetime limits on 
        coverage or any other significant limits on coverage services, 
        or benefits.
    The information required under this paragraph shall be reported 
    with respect to each category of coverage described in such 
    subparagraphs.
        (4) In each State and nationally, the gender and average age of 
    eligible individuals (as defined in section 35(c) of such Code) who 
    receive the health coverage tax credit, in each category of 
    coverage described in section 35(e)(1) of such Code, with respect 
    to each category of eligible individuals described in such section.
        (5) The steps taken by the Secretary of the Treasury to 
    increase the participation rates in the HCTC program among eligible 
    individuals, including outreach and enrollment activities.
        (6) The cost of administering the HCTC program by function, 
    including the cost of subcontractors, and recommendations on ways 
    to reduce administrative costs, including recommended statutory 
    changes.
        (7) The number of States applying for and receiving national 
    emergency grants under section 173(f) of the Workforce Investment 
    Act of 1998 (29 U.S.C. 2918(f)), the activities funded by such 
    grants on a State-by-State basis, and the time necessary for 
    application approval of such grants.

SEC. 1899J. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated $80,000,000 for the period 
of fiscal years 2009 through 2010 to implement the amendments made by, 
and the provisions of, sections 1899 through 1899I of this part.

SEC. 1899K. EXTENSION OF NATIONAL EMERGENCY GRANTS.

    (a) In General.--Section 173(f) of the Workforce Investment Act of 
1998 (29 U.S.C. 2918(f)), as amended by this Act, is amended--
        (1) by striking paragraph (1) and inserting the following new 
    paragraph:
        ``(1) Use of funds.--
            ``(A) Health insurance coverage for eligible individuals in 
        order to obtain qualified health insurance that has guaranteed 
        issue and other consumer protections.--Funds made available to 
        a State or entity under paragraph (4)(A) of subsection (a) may 
        be used to provide an eligible individual described in 
        paragraph (4)(C) and such individual's qualifying family 
        members with health insurance coverage for the 3-month period 
        that immediately precedes the first eligible coverage month (as 
        defined in section 35(b) of the Internal Revenue Code of 1986) 
        in which such eligible individual and such individual's 
        qualifying family members are covered by qualified health 
        insurance that meets the requirements described in clauses (i) 
        through (v) of section 35(e)(2)(A) of the Internal Revenue Code 
        of 1986 (or such longer minimum period as is necessary in order 
        for such eligible individual and such individual's qualifying 
        family members to be covered by qualified health insurance that 
        meets such requirements).
            ``(B) Additional uses.--Funds made available to a State or 
        entity under paragraph (4)(A) of subsection (a) may be used by 
        the State or entity for the following:
                ``(i) Health insurance coverage.--To assist an eligible 
            individual and such individual's qualifying family members 
            with enrolling in health insurance coverage and qualified 
            health insurance or paying premiums for such coverage or 
            insurance.
                ``(ii) Administrative expenses and start-up expenses to 
            establish group health plan coverage options for qualified 
            health insurance.--To pay the administrative expenses 
            related to the enrollment of eligible individuals and such 
            individuals' qualifying family members in health insurance 
            coverage and qualified health insurance, including--

                    ``(I) eligibility verification activities;
                    ``(II) the notification of eligible individuals of 
                available health insurance and qualified health 
                insurance options;
                    ``(III) processing qualified health insurance costs 
                credit eligibility certificates provided for under 
                section 7527 of the Internal Revenue Code of 1986;
                    ``(IV) providing assistance to eligible individuals 
                in enrolling in health insurance coverage and qualified 
                health insurance;
                    ``(V) the development or installation of necessary 
                data management systems; and
                    ``(VI) any other expenses determined appropriate by 
                the Secretary, including start-up costs and on going 
                administrative expenses, in order for the State to 
                treat the coverage described in subparagraphs (C) 
                through (H) of section 35(e)(1) of the Internal Revenue 
                Code of 1986 as qualified health insurance under that 
                section.

                ``(iii) Outreach.--To pay for outreach to eligible 
            individuals to inform such individuals of available health 
            insurance and qualified health insurance options, including 
            outreach consisting of notice to eligible individuals of 
            such options made available after the date of enactment of 
            this clause and direct assistance to help potentially 
            eligible individuals and such individual's qualifying 
            family members qualify and remain eligible for the credit 
            established under section 35 of the Internal Revenue Code 
            of 1986 and advance payment of such credit under section 
            7527 of such Code.
                ``(iv) Bridge funding.--To assist potentially eligible 
            individuals to purchase qualified health insurance coverage 
            prior to issuance of a qualified health insurance costs 
            credit eligibility certificate under section 7527 of the 
            Internal Revenue Code of 1986 and commencement of advance 
            payment, and receipt of expedited payment, under 
            subsections (a) and (e), respectively, of that section.
            ``(C) Rule of construction.--The inclusion of a permitted 
        use under this paragraph shall not be construed as prohibiting 
        a similar use of funds permitted under subsection (g).''; and
        (2) by striking paragraph (2) and inserting the following new 
    paragraph:
        ``(2) Qualified health insurance.--For purposes of this 
    subsection and subsection (g), the term `qualified health 
    insurance' has the meaning given that term in section 35(e) of the 
    Internal Revenue Code of 1986.''.
    (b) Funding.--Section 174(c)(1) of the Workforce Investment Act of 
1998 (29 U.S.C. 2919(c)(1)) is amended--
        (1) in the paragraph heading, by striking ``Authorization and 
    appropriation for fiscal year 2002'' and inserting 
    ``Appropriations''; and
        (2) by striking subparagraph (A) and inserting the following 
    new subparagraph:
            ``(A) to carry out subsection (a)(4)(A) of section 173--
                ``(i) $10,000,000 for fiscal year 2002; and
                ``(ii) $150,000,000 for the period of fiscal years 2009 
            through 2010; and''.

SEC. 1899L. GAO STUDY AND REPORT.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study regarding the health insurance tax credit allowed under 
section 35 of the Internal Revenue Code of 1986.
    (b) Report.--Not later than March 1, 2010, the Comptroller General 
shall submit a report to Congress regarding the results of the study 
conducted under subsection (a). Such report shall include an analysis 
of--
        (1) the administrative costs--
            (A) of the Federal Government with respect to such credit 
        and the advance payment of such credit under section 7527 of 
        such Code, and
            (B) of providers of qualified health insurance with respect 
        to providing such insurance to eligible individuals and their 
        qualifying family members,
        (2) the health status and relative risk status of eligible 
    individuals and qualifying family members covered under such 
    insurance,
        (3) participation in such credit and the advance payment of 
    such credit by eligible individuals and their qualifying family 
    members, including the reasons why such individuals did or did not 
    participate and the effect of the amendments made by this part on 
    such participation, and
        (4) the extent to which eligible individuals and their 
    qualifying family members--
            (A) obtained health insurance other than qualifying health 
        insurance, or
            (B) went without health insurance coverage.
    (c) Access to Records.--For purposes of conducting the study 
required under this section, the Comptroller General and any of his 
duly authorized representatives shall have access to, and the right to 
examine and copy, all documents, records, and other recorded 
information--
        (1) within the possession or control of providers of qualified 
    health insurance, and
        (2) determined by the Comptroller General (or any such 
    representative) to be relevant to the study.
The Comptroller General shall not disclose the identity of any provider 
of qualified health insurance or any eligible individual in making any 
information obtained under this section available to the public.
    (d) Definitions.--Any term which is defined in section 35 of the 
Internal Revenue Code of 1986 shall have the same meaning when used in 
this section.

  TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

SEC. 2000. SHORT TITLE; TABLE OF CONTENTS OF TITLE.

    (a) Short Title.--This title may be cited as the ``Assistance for 
Unemployed Workers and Struggling Families Act''.
    (b) Table of Contents of Title.--The table of contents of this 
title is as follows:

   TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES

Sec. 2000. Short title; table of contents of title.

                   Subtitle A--Unemployment Insurance

Sec. 2001. Extension of emergency unemployment compensation program.
Sec. 2002. Increase in unemployment compensation benefits.
Sec. 2003. Special transfers for unemployment compensation 
          modernization.
Sec. 2004. Temporary assistance for states with advances.
Sec. 2005. Full Federal funding of extended unemployment compensation 
          for a limited period.
Sec. 2006. Temporary increase in extended unemployment benefits under 
          the Railroad Unemployment Insurance Act.

            Subtitle B--Assistance for Vulnerable Individuals

Sec. 2101. Emergency fund for TANF program.
Sec. 2102. Extension of TANF supplemental grants.
Sec. 2103. Clarification of authority of States to use TANF funds 
          carried over from prior years to provide TANF benefits and 
          services.
Sec. 2104. Temporary resumption of prior child support law.

      Subtitle C--Economic Recovery Payments to Certain Individuals

Sec. 2201. Economic recovery payment to recipients of social security, 
          supplemental security income, railroad retirement benefits, 
          and veterans disability compensation or pension benefits.
Sec. 2202. Special credit for certain government retirees.

                   Subtitle A--Unemployment Insurance

SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

    (a) In General.--Section 4007 of the Supplemental Appropriations 
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by 
section 4 of the Unemployment Compensation Extension Act of 2008 
(Public Law 110-449; 122 Stat. 5015), is amended--
        (1) by striking ``March 31, 2009'' each place it appears and 
    inserting ``December 31, 2009'';
        (2) in the heading for subsection (b)(2), by striking ``march 
    31, 2009'' and inserting ``december 31, 2009''; and
        (3) in subsection (b)(3), by striking ``August 27, 2009'' and 
    inserting ``May 31, 2010''.
    (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 (i)(3) to the same 
    extent and in the same manner as if those benefits were regular 
    compensation.
        (2) Eligibility and termination rules.--Additional compensation 
    (as described in subsection (b)(1))--
            (A) shall not be payable, pursuant to this subsection, with 
        respect to any unemployment benefits described in subsection 
        (i)(3) for any week beginning on or after the date specified in 
        subsection (e)(1)(B), except in the case of an individual who 
        was eligible to receive additional compensation (as so 
        described) in connection with any regular compensation or any 
        unemployment benefits described in subsection (i)(3) for any 
        period of unemployment ending before such date; and
            (B) shall in no event be payable for any week beginning 
        after the date specified in subsection (e)(3).
    (h)  Disregard of Additional Compensation for Purposes of Medicaid 
and SCHIP.--The monthly equivalent of any additional compensation paid 
under this section shall be disregarded in considering the amount of 
income of an individual for any purposes under title XIX and title XXI 
of the Social Security Act.
    (i) Definitions.--For purposes of this section--
        (1) the terms ``compensation'', ``regular compensation'', 
    ``benefit year'', ``State'', ``State agency'', ``State law'', and 
    ``week'' have the respective meanings given such terms under 
    section 205 of the Federal-State Extended Unemployment Compensation 
    Act of 1970 (26 U.S.C. 3304 note);
        (2) the term ``emergency unemployment compensation'' means 
    emergency unemployment compensation under title IV of the 
    Supplemental Appropriations Act, 2008 (Public Law 110-252; 122 
    Stat. 2353); and
        (3) any reference to unemployment benefits described in this 
    paragraph shall be considered to refer to--
            (A) extended compensation (as defined by section 205 of the 
        Federal-State Extended Unemployment Compensation Act of 1970); 
        and
            (B) unemployment compensation (as defined by section 85(b) 
        of the Internal Revenue Code of 1986) provided under any 
        program administered by a State under an agreement with the 
        Secretary.

SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT COMPENSATION 
              MODERNIZATION.

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

     ``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)(i) Weekly unemployment compensation is payable under this 
    subparagraph to any individual who is unemployed (as determined 
    under the State unemployment compensation law), has exhausted all 
    rights to regular unemployment compensation under the State law, 
    and is enrolled and making satisfactory progress in a State-
    approved training program or in a job training program authorized 
    under the Workforce Investment Act of 1998, except that such 
    compensation is not required to be paid to an individual who is 
    receiving similar stipends or other training allowances for non-
    training costs.
        ``(ii) Each State-approved training program or job training 
    program referred to in clause (i) shall prepare individuals who 
    have been separated from a declining occupation, or who have been 
    involuntarily and indefinitely separated from employment as a 
    result of a permanent reduction of operations at the individual's 
    place of employment, for entry into a high-demand occupation.
        ``(iii) The amount of unemployment compensation payable under 
    this subparagraph to an individual for a week of unemployment shall 
    be equal to--
            ``(I) the individual's average weekly benefit amount 
        (including dependents' allowances) for the most recent benefit 
        year, less
            ``(II) any deductible income, as determined under State 
        law.
    The total amount of unemployment compensation payable under this 
    subparagraph to any individual shall be equal to at least 26 times 
    the individual's average weekly benefit amount (including 
    dependents' allowances) for the most recent benefit year.
        ``(D) Dependents' allowances are provided, in the case of any 
    individual who is entitled to receive regular unemployment 
    compensation and who has any dependents (as defined by State law), 
    in an amount equal to at least $15 per dependent per week, subject 
    to any aggregate limitation on such allowances which the State law 
    may establish (but which aggregate limitation on the total 
    allowance for dependents paid to an individual may not be less than 
    $50 for each week of unemployment or 50 percent of the individual's 
    weekly benefit amount for the benefit year, whichever is less), 
    except that a State law may provide for a reasonable reduction in 
    the amount of any such allowance for a week of less than total 
    unemployment.
    ``(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).

SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH ADVANCES.

    Section 1202(b) of the Social Security Act (42 U.S.C. 1322(b)) is 
amended by adding at the end the following new paragraph:
    ``(10)(A) With respect to the period beginning on the date of 
enactment of this paragraph and ending on December 31, 2010--
        ``(i) any interest payment otherwise due from a State under 
    this subsection during such period shall be deemed to have been 
    made by the State; and
        ``(ii) no interest shall accrue during such period on any 
    advance or advances made under section 1201 to a State.
    ``(B) The provisions of subparagraph (A) shall have no effect on 
the requirement for interest payments under this subsection after the 
period described in such subparagraph or on the accrual of interest 
under this subsection after such period.''.

SEC. 2005. FULL FEDERAL FUNDING OF EXTENDED UNEMPLOYMENT COMPENSATION 
              FOR A LIMITED PERIOD.

    (a) In General.--In the case of sharable extended compensation and 
sharable regular compensation paid for weeks of unemployment beginning 
after the date of the enactment of this section and before January 1, 
2010, section 204(a)(1) of the Federal-State Extended Unemployment 
Compensation Act of 1970 (26 U.S.C. 3304 note) shall be applied by 
substituting ``100 percent of'' for ``one-half of''.
    (b) Special Rule.--At the option of a State, for any weeks of 
unemployment beginning after the date of the enactment of this section 
and before January 1, 2010, an individual's eligibility period (as 
described in section 203(c) of the Federal-State Extended Unemployment 
Compensation Act of 1970) shall, for purposes of any determination of 
eligibility for extended compensation under the State law of such 
State, be considered to include any week which begins--
        (1) after the date as of which such individual exhausts all 
    rights to emergency unemployment compensation; and
        (2) during an extended benefit period that began on or before 
    the date described in paragraph (1).
    (c) Limited Extension.--In the case of an individual who receives 
extended compensation with respect to 1 or more weeks of unemployment 
beginning after the date of the enactment of this Act and before 
January 1, 2010, the provisions of subsections (a) and (b) shall, at 
the option of a State, be applied by substituting ``ending before June 
1, 2010'' for ``before January 1, 2010''.
    (d) Extension of Temporary Federal Matching for the First Week of 
Extended Benefits for States With No Waiting Week.--
        (1) In general.--Section 5 of the Unemployment Compensation 
    Extension Act of 2008 (Public Law 110-449) is amended by striking 
    ``December 8, 2009'' and inserting ``May 30, 2010''.
        (2) Effective date.--The amendment made by paragraph (1) shall 
    take effect as if included in the enactment of the Unemployment 
    Compensation Extension Act of 2008 (Public Law 110-449).
    (e) Definitions.--For purposes of this section--
        (1) the terms ``sharable extended compensation'' and ``sharable 
    regular compensation'' have the respective meanings given such 
    terms under section 204 of the Federal-State Extended Unemployment 
    Compensation Act of 1970;
        (2) the terms ``extended compensation'', ``State'', ``State 
    law'', and ``week'' have the respective meanings given such terms 
    under section 205 of the Federal-State Extended Unemployment 
    Compensation Act of 1970;
        (3) the term ``emergency unemployment compensation'' means 
    benefits payable to individuals under title IV of the Supplemental 
    Appropriations Act, 2008 with respect to their unemployment; and
        (4) the term ``extended benefit period'' means an extended 
    benefit period as determined in accordance with applicable 
    provisions of the Federal-State Extended Unemployment Compensation 
    Act of 1970.
    (f) Regulations.--The Secretary of Labor may prescribe any 
operating instructions or regulations necessary to carry out this 
section.

SEC. 2006. TEMPORARY INCREASE IN EXTENDED UNEMPLOYMENT BENEFITS UNDER 
              THE RAILROAD UNEMPLOYMENT INSURANCE ACT.

    (a) In General.--Section 2(c)(2) of the Railroad Unemployment 
Insurance Act (45 U.S.C. 352(c)(2)) is amended by adding at the end the 
following:
            ``(D) Temporary increase in extended unemployment 
        benefits.--
                ``(i) Employees with 10 or more years of service.--
            Subject to clause (iii), in the case of an employee who has 
            10 or more years of service (as so defined), with respect 
            to extended unemployment benefits--

                    ``(I) subparagraph (A) shall be applied by 
                substituting `130 days of unemployment' for `65 days of 
                unemployment'; and
                    ``(II) subparagraph (B) shall be applied by 
                inserting `(or, in the case of unemployment benefits, 
                13 consecutive 14-day periods)' after `7 consecutive 
                14-day periods'.

                ``(ii) Employees with less than 10 years of service.--
            Subject to clause (iii), in the case of an employee who has 
            less than 10 years of service (as so defined), with respect 
            to extended unemployment benefits, this paragraph shall 
            apply to such an employee in the same manner as this 
            paragraph would apply to an employee described in clause 
            (i) if such clause had not been enacted.
                ``(iii) Application.--The provisions of clauses (i) and 
            (ii) shall apply to an employee who received normal 
            benefits for days of unemployment under this Act during the 
            period beginning July 1, 2008, and ending on June 30, 2009, 
            except that no extended benefit period under this paragraph 
            shall begin after December 31, 2009. Notwithstanding the 
            preceding sentence, no benefits shall be payable under this 
            subparagraph and clauses (i) and (ii) shall no longer be 
            applicable upon the exhaustion of the funds appropriated 
            under clause (iv) for payment of benefits under this 
            subparagraph.
                ``(iv) Appropriation.--Out of any funds in the Treasury 
            not otherwise appropriated, there are appropriated 
            $20,000,000 to cover the cost of additional extended 
            unemployment benefits provided under this subparagraph, to 
            remain available until expended.''.
    (b) Funding for Administration.--Out of any funds in the Treasury 
not otherwise appropriated, there are appropriated to the Railroad 
Retirement Board $80,000 to cover the administrative expenses 
associated with the payment of additional extended unemployment 
benefits under section 2(c)(2)(D) of the Railroad Unemployment 
Insurance Act, as added by subsection (a), to remain available until 
expended.

           Subtitle B--Assistance for Vulnerable Individuals

SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.

    (a) Temporary Fund.--
        (1) In general.--Section 403 of the Social Security Act (42 
    U.S.C. 603) is amended by adding at the end the following:
    ``(c) Emergency Fund.--
        ``(1) Establishment.--There is established in the Treasury of 
    the United States a fund which shall be known as the `Emergency 
    Contingency Fund for State Temporary Assistance for Needy Families 
    Programs' (in this subsection referred to as the `Emergency Fund').
        ``(2) Deposits into fund.--
            ``(A) In general.--Out of any money in the Treasury of the 
        United States not otherwise appropriated, there are 
        appropriated for fiscal year 2009, $5,000,000,000 for payment 
        to the Emergency Fund.
            ``(B) Availability and use of funds.--The amounts 
        appropriated to the Emergency Fund under subparagraph (A) shall 
        remain available through fiscal year 2010 and shall be used to 
        make grants to States in each of fiscal years 2009 and 2010 in 
        accordance with the requirements of paragraph (3).
            ``(C) Limitation.--In no case may the Secretary make a 
        grant from the Emergency Fund for a fiscal year after fiscal 
        year 2010.
        ``(3) Grants.--
            ``(A) Grant related to caseload increases.--
                ``(i) In general.--For each calendar quarter in fiscal 
            year 2009 or 2010, the Secretary shall make a grant from 
            the Emergency Fund to each State that--

                    ``(I) requests a grant under this subparagraph for 
                the quarter; and
                    ``(II) meets the requirement of clause (ii) for the 
                quarter.

                ``(ii) Caseload increase requirement.--A State meets 
            the requirement of this clause for a quarter if the average 
            monthly assistance caseload of the State for the quarter 
            exceeds the average monthly assistance caseload of the 
            State for the corresponding quarter in the emergency fund 
            base year of the State.
                ``(iii) Amount of grant.--Subject to paragraph (5), the 
            amount of the grant to be made to a State under this 
            subparagraph for a quarter shall be an amount equal to 80 
            percent of the amount (if any) by which the total 
            expenditures of the State for basic assistance (as defined 
            by the Secretary) in the quarter, whether under the State 
            program funded under this part or as qualified State 
            expenditures, exceeds the total expenditures of the State 
            for such assistance for the corresponding quarter in the 
            emergency fund base year of the State.
            ``(B) Grant related to increased expenditures for non-
        recurrent short term benefits.--
                ``(i) In general.--For each calendar quarter in fiscal 
            year 2009 or 2010, the Secretary shall make a grant from 
            the Emergency Fund to each State that--

                    ``(I) requests a grant under this subparagraph for 
                the quarter; and
                    ``(II) meets the requirement of clause (ii) for the 
                quarter.

                ``(ii) Non-recurrent short term expenditure 
            requirement.--A State meets the requirement of this clause 
            for a quarter if the total expenditures of the State for 
            non-recurrent short term benefits in the quarter, whether 
            under the State program funded under this part or as 
            qualified State expenditures, exceeds the total 
            expenditures of the State for non-recurrent short term 
            benefits in the corresponding quarter in the emergency fund 
            base year of the State.
                ``(iii) Amount of grant.--Subject to paragraph (5), the 
            amount of the grant to be made to a State under this 
            subparagraph for a quarter shall be an amount equal to 80 
            percent of the excess described in clause (ii).
            ``(C) Grant related to increased expenditures for 
        subsidized employment.--
                ``(i) In general.--For each calendar quarter in fiscal 
            year 2009 or 2010, the Secretary shall make a grant from 
            the Emergency Fund to each State that--

                    ``(I) requests a grant under this subparagraph for 
                the quarter; and
                    ``(II) meets the requirement of clause (ii) for the 
                quarter.

                ``(ii) Subsidized employment expenditure requirement.--
            A State meets the requirement of this clause for a quarter 
            if the total expenditures of the State for subsidized 
            employment in the quarter, whether under the State program 
            funded under this part or as qualified State expenditures, 
            exceeds the total such expenditures of the State in the 
            corresponding quarter in the emergency fund base year of 
            the State.
                ``(iii) Amount of grant.--Subject to paragraph (5), the 
            amount of the grant to be made to a State under this 
            subparagraph for a quarter shall be an amount equal to 80 
            percent of the excess described in clause (ii).
        ``(4) Authority to make necessary adjustments to data and 
    collect needed data.--In determining the size of the caseload of a 
    State and the expenditures of a State for basic assistance, non-
    recurrent short-term benefits, and subsidized employment, during 
    any period for which the State requests funds under this 
    subsection, and during the emergency fund base year of the State, 
    the Secretary may make appropriate adjustments to the data, on a 
    State-by-State basis, to ensure that the data are comparable with 
    respect to the groups of families served and the types of aid 
    provided. The Secretary may develop a mechanism for collecting 
    expenditure data, including procedures which allow States to make 
    reasonable estimates, and may set deadlines for making revisions to 
    the data.
        ``(5) Limitation.--The total amount payable to a single State 
    under subsection (b) and this subsection for fiscal years 2009 and 
    2010 combined shall not exceed 50 percent of the annual State 
    family assistance grant.
        ``(6) Limitations on use of funds.--A State to which an amount 
    is paid under this subsection may use the amount only as authorized 
    by section 404.
        ``(7) Timing of implementation.--The Secretary shall implement 
    this subsection as quickly as reasonably possible, pursuant to 
    appropriate guidance to States.
        ``(8) Application to indian tribes.--This subsection shall 
    apply to an Indian tribe with an approved tribal family assistance 
    plan under section 412 in the same manner as this subsection 
    applies to a State.
        ``(9) Definitions.--In this subsection:
            ``(A) Average monthly assistance caseload defined.--The 
        term `average monthly assistance caseload' means, with respect 
        to a State and a quarter, the number of families receiving 
        assistance during the quarter under the State program funded 
        under this part or as qualified State expenditures, subject to 
        adjustment under paragraph (4).
            ``(B) Emergency fund base year.--
                ``(i) In general.--The term `emergency fund base year' 
            means, with respect to a State and a category described in 
            clause (ii), whichever of fiscal year 2007 or 2008 is the 
            fiscal year in which the amount described by the category 
            with respect to the State is the lesser.
                ``(ii) Categories described.--The categories described 
            in this clause are the following:

                    ``(I) The average monthly assistance caseload of 
                the State.
                    ``(II) The total expenditures of the State for non-
                recurrent short term benefits, whether under the State 
                program funded under this part or as qualified State 
                expenditures.
                    ``(III) The total expenditures of the State for 
                subsidized employment, whether under the State program 
                funded under this part or as qualified State 
                expenditures.

            ``(C) Qualified state expenditures.--The term `qualified 
        State expenditures' has the meaning given the term in section 
        409(a)(7).''.
        (2) Repeal.--Effective October 1, 2010, subsection (c) of 
    section 403 of the Social Security Act (42 U.S.C. 603) (as added by 
    paragraph (1)) is repealed, except that paragraph (9) of such 
    subsection shall remain in effect until October 1, 2011, but only 
    with respect to section 407(b)(3)(A)(i) of such Act.
    (b) Temporary Modification of Caseload Reduction Credit.--Section 
407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by 
inserting ``(or if the immediately preceding fiscal year is fiscal year 
2008, 2009, or 2010, then, at State option, during the emergency fund 
base year of the State with respect to the average monthly assistance 
caseload of the State (within the meaning of section 403(c)(9)), except 
that, if a State elects such option for fiscal year 2008, the emergency 
fund base year of the State with respect to such caseload shall be 
fiscal year 2007))'' before ``under the State''.
    (c) Disregard From Limitation on Total Payments to Territories.--
Section 1108(a)(2) of the Social Security Act (42 U.S.C. 1308(a)(2)) is 
amended by inserting ``403(c)(3),'' after ``403(a)(5),''.
    (d) Sunset of Other Temporary Provisions.--
        (1) Disregard from limitation on total payments to 
    territories.--Effective October 1, 2010, section 1108(a)(2) of the 
    Social Security Act (42 U.S.C. 1308(a)(2)) is amended by striking 
    ``403(c)(3),'' (as added by subsection (c)).
        (2) Caseload reduction credit.--Effective October 1, 2011, 
    section 407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is 
    amended by striking ``(or if the immediately preceding fiscal year 
    is fiscal year 2008, 2009, or 2010, then, at State option, during 
    the emergency fund base year of the State with respect to the 
    average monthly assistance caseload of the State (within the 
    meaning of section 403(c)(9)), except that, if a State elects such 
    option for fiscal year 2008, the emergency fund base year of the 
    State with respect to such caseload shall be fiscal year 2007))'' 
    (as added by subsection (b)).

SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS.

    (a) Extension Through Fiscal Year 2010.--Section 7101(a) of the 
Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat. 135), as 
amended by section 301(a) of the Medicare Improvements for Patients and 
Providers Act of 2008 (Public Law 110-275), is amended by striking 
``fiscal year 2009'' and inserting ``fiscal year 2010''.
    (b) Conforming Amendment.--Section 403(a)(3)(H)(ii) of the Social 
Security Act (42 U.S.C. 603(a)(3)(H)(ii)) is amended to read as 
follows:
                ``(ii) subparagraph (G) shall be applied as if `fiscal 
            year 2010' were substituted for `fiscal year 2001'; and''.

SEC. 2103. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF FUNDS 
              CARRIED OVER FROM PRIOR YEARS TO PROVIDE TANF BENEFITS 
              AND SERVICES.

    Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is 
amended to read as follows:
    ``(e) Authority to Carry Over Certain Amounts for Benefits or 
Services or for Future Contingencies.--A State or tribe may use a grant 
made to the State or tribe under this part for any fiscal year to 
provide, without fiscal year limitation, any benefit or service that 
may be provided under the State or tribal program funded under this 
part.''.

SEC. 2104. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW.

    During the period that begins on October 1, 2008, and ends on 
September 30, 2010, section 455(a)(1) of the Social Security Act (42 
U.S.C. 655(a)(1)) shall be applied and administered as if the phrase 
``from amounts paid to the State under section 458 or'' does not appear 
in such section.

     Subtitle C--Economic Recovery Payments to Certain Individuals

SEC. 2201. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS OF SOCIAL SECURITY, 
              SUPPLEMENTAL SECURITY INCOME, RAILROAD RETIREMENT 
              BENEFITS, AND VETERANS DISABILITY COMPENSATION OR PENSION 
              BENEFITS.

    (a) Authority to Make Payments.--
        (1) Eligibility.--
            (A) In general.--Subject to paragraph (5)(B), the Secretary 
        of the Treasury shall disburse a $250 payment to each 
        individual who, for any month during the 3-month period ending 
        with the month which ends prior to the month that includes the 
        date of the enactment of this Act, is entitled to a benefit 
        payment described in clause (i), (ii), or (iii) of subparagraph 
        (B) or is eligible for a SSI cash benefit described in 
        subparagraph (C).
            (B) Benefit payment described.--For purposes of 
        subparagraph (A):
                (i) Title ii benefit.--A benefit payment described in 
            this clause is a monthly insurance benefit payable (without 
            regard to sections 202(j)(1) and 223(b) of the Social 
            Security Act (42 U.S.C. 402(j)(1), 423(b)) under--

                    (I) section 202(a) of such Act (42 U.S.C. 402(a));
                    (II) section 202(b) of such Act (42 U.S.C. 402(b));
                    (III) section 202(c) of such Act (42 U.S.C. 
                402(c));
                    (IV) section 202(d)(1)(B)(ii) of such Act (42 
                U.S.C. 402(d)(1)(B)(ii));
                    (V) section 202(e) of such Act (42 U.S.C. 402(e));
                    (VI) section 202(f) of such Act (42 U.S.C. 402(f));
                    (VII) section 202(g) of such Act (42 U.S.C. 
                402(g));
                    (VIII) section 202(h) of such Act (42 U.S.C. 
                402(h));
                    (IX) section 223(a) of such Act (42 U.S.C. 423(a));
                    (X) section 227 of such Act (42 U.S.C. 427); or
                    (XI) section 228 of such Act (42 U.S.C. 428).

                (ii) Railroad retirement benefit.--A benefit payment 
            described in this clause is a monthly annuity or pension 
            payment payable (without regard to section 5(a)(ii) of the 
            Railroad Retirement Act of 1974 (45 U.S.C. 231d(a)(ii))) 
            under--

                    (I) section 2(a)(1) of such Act (45 U.S.C. 
                231a(a)(1));
                    (II) section 2(c) of such Act (45 U.S.C. 231a(c));
                    (III) section 2(d)(1)(i) of such Act (45 U.S.C. 
                231a(d)(1)(i));
                    (IV) section 2(d)(1)(ii) of such Act (45 U.S.C. 
                231a(d)(1)(ii));
                    (V) section 2(d)(1)(iii)(C) of such Act to an adult 
                disabled child (45 U.S.C. 231a(d)(1)(iii)(C));
                    (VI) section 2(d)(1)(iv) of such Act (45 U.S.C. 
                231a(d)(1)(iv));
                    (VII) section 2(d)(1)(v) of such Act (45 U.S.C. 
                231a(d)(1)(v)); or
                    (VIII) section 7(b)(2) of such Act (45 U.S.C. 
                231f(b)(2)) with respect to any of the benefit payments 
                described in clause (i) of this subparagraph.

                (iii) Veterans benefit.--A benefit payment described in 
            this clause is a compensation or pension payment payable 
            under--

                    (I) section 1110, 1117, 1121, 1131, 1141, or 1151 
                of title 38, United States Code;
                    (II) section 1310, 1312, 1313, 1315, 1316, or 1318 
                of title 38, United States Code;
                    (III) section 1513, 1521, 1533, 1536, 1537, 1541, 
                1542, or 1562 of title 38, United States Code; or
                    (IV) section 1805, 1815, or 1821 of title 38, 
                United States Code,

            to a veteran, surviving spouse, child, or parent as 
            described in paragraph (2), (3), (4)(A)(ii), or (5) of 
            section 101, title 38, United States Code, who received 
            that benefit during any month within the 3 month period 
            ending with the month which ends prior to the month that 
            includes the date of the enactment of this Act.
            (C) Ssi cash benefit described.--A SSI cash benefit 
        described in this subparagraph is a cash benefit payable under 
        section 1611 (other than under subsection (e)(1)(B) of such 
        section) or 1619(a) of the Social Security Act (42 U.S.C. 1382, 
        1382h).
        (2) Requirement.--A payment shall be made under paragraph (1) 
    only to individuals who reside in 1 of the 50 States, the District 
    of Columbia, Puerto Rico, Guam, the United States Virgin Islands, 
    American Samoa, or the Northern Mariana Islands. For purposes of 
    the preceding sentence, the determination of the individual's 
    residence shall be based on the current address of record under a 
    program specified in paragraph (1).
        (3) No double payments.--An individual shall be paid only 1 
    payment under this section, regardless of whether the individual is 
    entitled to, or eligible for, more than 1 benefit or cash payment 
    described in paragraph (1).
        (4) Limitation.--A payment under this section shall not be 
    made--
            (A) in the case of an individual entitled to a benefit 
        specified in paragraph (1)(B)(i) or paragraph (1)(B)(ii)(VIII) 
        if, for the most recent month of such individual's entitlement 
        in the 3-month period described in paragraph (1), such 
        individual's benefit under such paragraph was not payable by 
        reason of subsection (x) or (y) of section 202 the Social 
        Security Act (42 U.S.C. 402) or section 1129A of such Act (42 
        U.S.C. 1320a-8a);
            (B) in the case of an individual entitled to a benefit 
        specified in paragraph (1)(B)(iii) if, for the most recent 
        month of such individual's entitlement in the 3 month period 
        described in paragraph (1), such individual's benefit under 
        such paragraph was not payable, or was reduced, by reason of 
        section 1505, 5313, or 5313B of title 38, United States Code;
            (C) in the case of an individual entitled to a benefit 
        specified in paragraph (1)(C) if, for such most recent month, 
        such individual's benefit under such paragraph was not payable 
        by reason of subsection (e)(1)(A) or (e)(4) of section 1611 (42 
        U.S.C. 1382) or section 1129A of such Act (42 U.S.C. 1320a-8a); 
        or
            (D) in the case of any individual whose date of death 
        occurs before the date on which the individual is certified 
        under subsection (b) to receive a payment under this section.
        (5) Timing and manner of payments.--
            (A) In general.--The Secretary of the Treasury shall 
        commence disbursing payments under this section at the earliest 
        practicable date but in no event later than 120 days after the 
        date of enactment of this Act. The Secretary of the Treasury 
        may disburse any payment electronically to an individual in 
        such manner as if such payment was a benefit payment or cash 
        benefit to such individual under the applicable program 
        described in subparagraph (B) or (C) of paragraph (1).
            (B) Deadline.--No payments shall be disbursed under this 
        section after December 31, 2010, regardless of any 
        determinations of entitlement to, or eligibility for, such 
        payments made after such date.
    (b) Identification of Recipients.--The Commissioner of Social 
Security, the Railroad Retirement Board, and the Secretary of Veterans 
Affairs shall certify the individuals entitled to receive payments 
under this section and provide the Secretary of the Treasury with the 
information needed to disburse such payments. A certification of an 
individual shall be unaffected by any subsequent determination or 
redetermination of the individual's entitlement to, or eligibility for, 
a benefit specified in subparagraph (B) or (C) of subsection (a)(1).
    (c) Treatment of Payments.--
        (1) Payment to be disregarded for purposes of all federal and 
    federally assisted programs.--A payment under subsection (a) shall 
    not be regarded as income and shall not be regarded as a resource 
    for the month of receipt and the following 9 months, for purposes 
    of determining the eligibility of the recipient (or the recipient's 
    spouse or family) for benefits or assistance, or the amount or 
    extent of benefits or assistance, under any Federal program or 
    under any State or local program financed in whole or in part with 
    Federal funds.
        (2) Payment not considered income for purposes of taxation.--A 
    payment under subsection (a) shall not be considered as gross 
    income for purposes of the Internal Revenue Code of 1986.
        (3) Payments protected from assignment.--The provisions of 
    sections 207 and 1631(d)(1) of the Social Security Act (42 U.S.C. 
    407, 1383(d)(1)), section 14(a) of the Railroad Retirement Act of 
    1974 (45 U.S.C. 231m(a)), and section 5301 of title 38, United 
    States Code, shall apply to any payment made under subsection (a) 
    as if such payment was a benefit payment or cash benefit to such 
    individual under the applicable program described in subparagraph 
    (B) or (C) of subsection (a)(1).
        (4) Payments subject to offset.--Notwithstanding paragraph (3), 
    for purposes of section 3716 of title 31, United States Code, any 
    payment made under this section shall not be considered a benefit 
    payment or cash benefit made under the applicable program described 
    in subparagraph (B) or (C) of subsection (a)(1) and all amounts 
    paid shall be subject to offset to collect delinquent debts.
    (d) Payment to Representative Payees and Fiduciaries.--
        (1) In general.--In any case in which an individual who is 
    entitled to a payment under subsection (a) and whose benefit 
    payment or cash benefit described in paragraph (1) of that 
    subsection is paid to a representative payee or fiduciary, the 
    payment under subsection (a) shall be made to the individual's 
    representative payee or fiduciary and the entire payment shall be 
    used only for the benefit of the individual who is entitled to the 
    payment.
        (2) Applicability.--
            (A) Payment on the basis of a title ii or ssi benefit.--
        Section 1129(a)(3) of the Social Security Act (42 U.S.C. 1320a-
        8(a)(3)) shall apply to any payment made on the basis of an 
        entitlement to a benefit specified in paragraph (1)(B)(i) or 
        (1)(C) of subsection (a) in the same manner as such section 
        applies to a payment under title II or XVI of such Act.
            (B) Payment on the basis of a railroad retirement 
        benefit.--Section 13 of the Railroad Retirement Act (45 U.S.C. 
        231l) shall apply to any payment made on the basis of an 
        entitlement to a benefit specified in paragraph (1)(B)(ii) of 
        subsection (a) in the same manner as such section applies to a 
        payment under such Act.
            (C) Payment on the basis of a veterans benefit.--Sections 
        5502, 6106, and 6108 of title 38, United States Code, shall 
        apply to any payment made on the basis of an entitlement to a 
        benefit specified in paragraph (1)(B)(iii) of subsection (a) in 
        the same manner as those sections apply to a payment under that 
        title.
    (e) Appropriation.--Out of any sums in the Treasury of the United 
States not otherwise appropriated, the following sums are appropriated 
for the period of fiscal years 2009 through 2011, to remain available 
until expended, to carry out this section:
        (1) For the Secretary of the Treasury, $131,000,000 for 
    administrative costs incurred in carrying out this section, section 
    2202, section 36A of the Internal Revenue Code of 1986 (as added by 
    this Act), and other provisions of this Act or the amendments made 
    by this Act relating to the Internal Revenue Code of 1986.
        (2) For the Commissioner of Social Security--
            (A) such sums as may be necessary for payments to 
        individuals certified by the Commissioner of Social Security as 
        entitled to receive a payment under this section; and
            (B) $90,000,000 for the Social Security Administration's 
        Limitation on Administrative Expenses for costs incurred in 
        carrying out this section.
        (3) For the Railroad Retirement Board--
            (A) such sums as may be necessary for payments to 
        individuals certified by the Railroad Retirement Board as 
        entitled to receive a payment under this section; and
            (B) $1,400,000 to the Railroad Retirement Board's 
        Limitation on Administration for administrative costs incurred 
        in carrying out this section.
        (4)(A) For the Secretary of Veterans Affairs--
                (i) such sums as may be necessary for the Compensation 
            and Pensions account, for payments to individuals certified 
            by the Secretary of Veterans Affairs as entitled to receive 
            a payment under this section; and
                (ii) $100,000 for the Information Systems Technology 
            account and $7,100,000 for the General Operating Expenses 
            account for administrative costs incurred in carrying out 
            this section.
        (B) The Department of Veterans Affairs Compensation and 
    Pensions account shall hereinafter be available for payments 
    authorized under subsection (a)(1)(A) to individuals entitled to a 
    benefit payment described in subsection (a)(1)(B)(iii).

SEC. 2202. SPECIAL CREDIT FOR CERTAIN GOVERNMENT RETIREES.

    (a) In General.--In the case of an eligible individual, there shall 
be allowed as a credit against the tax imposed by subtitle A of the 
Internal Revenue Code of 1986 for the first taxable year beginning in 
2009 an amount equal $250 ($500 in the case of a joint return where 
both spouses are eligible individuals).
    (b) Eligible Individual.--For purposes of this section--
        (1) In general.--The term ``eligible individual'' means any 
    individual--
            (A) who receives during the first taxable year beginning in 
        2009 any amount as a pension or annuity for service performed 
        in the employ of the United States or any State, or any 
        instrumentality thereof, which is not considered employment for 
        purposes of chapter 21 of the Internal Revenue Code of 1986, 
        and
            (B) who does not receive a payment under section 2201 
        during such taxable year.
        (2) Identification number requirement.--Such term shall not 
    include any individual who does not include on the return of tax 
    for the taxable year--
            (A) such individual's social security account number, and
            (B) in the case of a joint return, the social security 
        account number of one of the taxpayers on such return.
    For purposes of the preceding sentence, the social security account 
    number shall not include a TIN (as defined in section 7701(a)(41) 
    of the Internal Revenue Code of 1986) issued by the Internal 
    Revenue Service. Any omission of a correct social security account 
    number required under this subparagraph shall be treated as a 
    mathematical or clerical error for purposes of applying section 
    6213(g)(2) of such Code to such omission.
    (c) Treatment of Credit.--
        (1) Refundable credit.--
            (A) In general.--The credit allowed by subsection (a) shall 
        be treated as allowed by subpart C of part IV of subchapter A 
        of chapter 1 of the Internal Revenue Code of 1986.
            (B) Appropriations.--For purposes of section 1324(b)(2) of 
        title 31, United States Code, the credit allowed by subsection 
        (a) shall be treated in the same manner a refund from the 
        credit allowed under section 36A of the Internal Revenue Code 
        of 1986 (as added by this Act).
        (2) Deficiency rules.--For purposes of section 6211(b)(4)(A) of 
    the Internal Revenue Code of 1986, the credit allowable by 
    subsection (a) shall be treated in the same manner as the credit 
    allowable under section 36A of the Internal Revenue Code of 1986 
    (as added by this Act).
    (d) Refunds Disregarded in the Administration of Federal Programs 
and Federally Assisted Programs.--Any credit or refund allowed or made 
to any individual by reason of this section shall not be taken into 
account as income and shall not be taken into account as resources for 
the month of receipt and the following 2 months, for purposes of 
determining the eligibility of such individual or any other individual 
for benefits or assistance, or the amount or extent of benefits or 
assistance, under any Federal program or under any State or local 
program financed in whole or in part with Federal funds.

            TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS

SEC. 3000. TABLE OF CONTENTS.

    The table of contents of this title is as follows:

            TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS

Sec. 3000. Table of contents.
Sec. 3001. Premium assistance for COBRA benefits.

SEC. 3001. PREMIUM ASSISTANCE FOR COBRA BENEFITS.

    (a) Premium Assistance for COBRA Continuation Coverage for 
Individuals and Their Families.--
        (1) Provision of premium assistance.--
            (A) Reduction of premiums payable.--In the case of any 
        premium for a period of coverage beginning on or after the date 
        of the enactment of this Act for COBRA continuation coverage 
        with respect to any assistance eligible individual, such 
        individual shall be treated for purposes of any COBRA 
        continuation provision as having paid the amount of such 
        premium if such individual pays (or a person other than such 
        individual's employer pays on behalf of such individual) 35 
        percent of the amount of such premium (as determined without 
        regard to this subsection).
            (B) Plan enrollment option.--
                (i) In general.--Notwithstanding the COBRA continuation 
            provisions, an assistance eligible individual may, not 
            later than 90 days after the date of notice of the plan 
            enrollment option described in this subparagraph, elect to 
            enroll in coverage under a plan offered by the employer 
            involved, or the employee organization involved (including, 
            for this purpose, a joint board of trustees of a 
            multiemployer trust affiliated with one or more 
            multiemployer plans), that is different than coverage under 
            the plan in which such individual was enrolled at the time 
            the qualifying event occurred, and such coverage shall be 
            treated as COBRA continuation coverage for purposes of the 
            applicable COBRA continuation coverage provision.
                (ii) Requirements.--An assistance eligible individual 
            may elect to enroll in different coverage as described in 
            clause (i) only if--

                    (I) the employer involved has made a determination 
                that such employer will permit assistance eligible 
                individuals to enroll in different coverage as provided 
                for this subparagraph;
                    (II) the premium for such different coverage does 
                not exceed the premium for coverage in which the 
                individual was enrolled at the time the qualifying 
                event occurred;
                    (III) the different coverage in which the 
                individual elects to enroll is coverage that is also 
                offered to the active employees of the employer at the 
                time at which such election is made; and
                    (IV) the different coverage is not--

                        (aa) coverage that provides only dental, 
                    vision, counseling, or referral services (or a 
                    combination of such services);
                        (bb) a flexible spending arrangement (as 
                    defined in section 106(c)(2) of the Internal 
                    Revenue Code of 1986); or
                        (cc) coverage that provides coverage for 
                    services or treatments furnished in an on-site 
                    medical facility maintained by the employer and 
                    that consists primarily of first-aid services, 
                    prevention and wellness care, or similar care (or a 
                    combination of such care).
            (C) Premium reimbursement.--For provisions providing the 
        balance of such premium, see section 6432 of the Internal 
        Revenue Code of 1986, as added by paragraph (12).
        (2) Limitation of period of premium assistance.--
            (A) In general.--Paragraph (1)(A) shall not apply with 
        respect to any assistance eligible individual for months of 
        coverage beginning on or after the earlier of--
                (i) the first date that such individual is eligible for 
            coverage under any other group health plan (other than 
            coverage consisting of only dental, vision, counseling, or 
            referral services (or a combination thereof), coverage 
            under a flexible spending arrangement (as defined in 
            section 106(c)(2) of the Internal Revenue Code of 1986), or 
            coverage of treatment that is furnished in an on-site 
            medical facility maintained by the employer and that 
            consists primarily of first-aid services, prevention and 
            wellness care, or similar care (or a combination thereof)) 
            or is eligible for benefits under title XVIII of the Social 
            Security Act, or
                (ii) the earliest of--

                    (I) the date which is 9 months after the first day 
                of the first month that paragraph (1)(A) applies with 
                respect to such individual,
                    (II) the date following the expiration of the 
                maximum period of continuation coverage required under 
                the applicable COBRA continuation coverage provision, 
                or
                    (III) the date following the expiration of the 
                period of continuation coverage allowed under paragraph 
                (4)(B)(ii).

            (B) Timing of eligibility for additional coverage.--For 
        purposes of subparagraph (A)(i), an individual shall not be 
        treated as eligible for coverage under a group health plan 
        before the first date on which such individual could be covered 
        under such plan.
            (C) Notification requirement.--An assistance eligible 
        individual shall notify in writing the group health plan with 
        respect to which paragraph (1)(A) applies if such paragraph 
        ceases to apply by reason of subparagraph (A)(i). Such notice 
        shall be provided to the group health plan in such time and 
        manner as may be specified by the Secretary of Labor.
        (3) Assistance eligible individual.--For purposes of this 
    section, the term ``assistance eligible individual'' means any 
    qualified beneficiary if--
            (A) at any time during the period that begins with 
        September 1, 2008, and ends with December 31, 2009, such 
        qualified beneficiary is eligible for COBRA continuation 
        coverage,
            (B) such qualified beneficiary elects such coverage, and
            (C) the qualifying event with respect to the COBRA 
        continuation coverage consists of the involuntary termination 
        of the covered employee's employment and occurred during such 
        period.
        (4) Extension of election period and effect on coverage.--
            (A) In general.--For purposes of applying section 605(a) of 
        the Employee Retirement Income Security Act of 1974, section 
        4980B(f)(5)(A) of the Internal Revenue Code of 1986, section 
        2205(a) of the Public Health Service Act, and section 
        8905a(c)(2) of title 5, United States Code, in the case of an 
        individual who does not have an election of COBRA continuation 
        coverage in effect on the date of the enactment of this Act but 
        who would be an assistance eligible individual if such election 
        were so in effect, such individual may elect the COBRA 
        continuation coverage under the COBRA continuation coverage 
        provisions containing such sections during the period beginning 
        on the date of the enactment of this Act and ending 60 days 
        after the date on which the notification required under 
        paragraph (7)(C) is provided to such individual.
            (B) Commencement of coverage; no reach-back.--Any COBRA 
        continuation coverage elected by a qualified beneficiary during 
        an extended election period under subparagraph (A)--
                (i) shall commence with the first period of coverage 
            beginning on or after the date of the enactment of this 
            Act, and
                (ii) shall not extend beyond the period of COBRA 
            continuation coverage that would have been required under 
            the applicable COBRA continuation coverage provision if the 
            coverage had been elected as required under such provision.
            (C) Preexisting conditions.--With respect to a qualified 
        beneficiary who elects COBRA continuation coverage pursuant to 
        subparagraph (A), the period--
                (i) beginning on the date of the qualifying event, and
                (ii) ending with the beginning of the period described 
            in subparagraph (B)(i),
        shall be disregarded for purposes of determining the 63-day 
        periods referred to in section 701(c)(2) of the Employee 
        Retirement Income Security Act of 1974, section 9801(c)(2) of 
        the Internal Revenue Code of 1986, and section 2701(c)(2) of 
        the Public Health Service Act.
        (5) Expedited review of denials of premium assistance.--In any 
    case in which an individual requests treatment as an assistance 
    eligible individual and is denied such treatment by the group 
    health plan, the Secretary of Labor (or the Secretary of Health and 
    Human Services in connection with COBRA continuation coverage which 
    is provided other than pursuant to part 6 of subtitle B of title I 
    of the Employee Retirement Income Security Act of 1974), in 
    consultation with the Secretary of the Treasury, shall provide for 
    expedited review of such denial. An individual shall be entitled to 
    such review upon application to such Secretary in such form and 
    manner as shall be provided by such Secretary. Such Secretary shall 
    make a determination regarding such individual's eligibility within 
    15 business days after receipt of such individual's application for 
    review under this paragraph. Either Secretary's determination upon 
    review of the denial shall be de novo and shall be the final 
    determination of such Secretary. A reviewing court shall grant 
    deference to such Secretary's determination. The provisions of this 
    paragraph, paragraphs (1) through (4), and paragraph (7) shall be 
    treated as provisions of title I of the Employee Retirement Income 
    Security Act of 1974 for purposes of part 5 of subtitle B of such 
    title.
        (6) Disregard of subsidies for purposes of federal and state 
    programs.--Notwithstanding any other provision of law, any premium 
    reduction with respect to an assistance eligible individual under 
    this subsection shall not be considered income or resources in 
    determining eligibility for, or the amount of assistance or 
    benefits provided under, any other public benefit provided under 
    Federal law or the law of any State or political subdivision 
    thereof.
        (7) Notices to individuals.--
            (A) General notice.--
                (i) In general.--In the case of notices provided under 
            section 606(a)(4) of the Employee Retirement Income 
            Security Act of 1974 (29 U.S.C. 1166(4)), section 
            4980B(f)(6)(D) of the Internal Revenue Code of 1986, 
            section 2206(4) of the Public Health Service Act (42 U.S.C. 
            300bb-6(4)), or section 8905a(f)(2)(A) of title 5, United 
            States Code, with respect to individuals who, during the 
            period described in paragraph (3)(A), become entitled to 
            elect COBRA continuation coverage, the requirements of such 
            sections shall not be treated as met unless such notices 
            include an additional notification to the recipient of--

                    (I) the availability of premium reduction with 
                respect to such coverage under this subsection, and
                    (II) the option to enroll in different coverage if 
                the employer permits assistance eligible individuals to 
                elect enrollment in different coverage (as described in 
                paragraph (1)(B)).

                (ii) Alternative notice.--In the case of COBRA 
            continuation coverage to which the notice provision under 
            such sections does not apply, the Secretary of Labor, in 
            consultation with the Secretary of the Treasury and the 
            Secretary of Health and Human Services, shall, in 
            consultation with administrators of the group health plans 
            (or other entities) that provide or administer the COBRA 
            continuation coverage involved, provide rules requiring the 
            provision of such notice.
                (iii) Form.--The requirement of the additional 
            notification under this subparagraph may be met by 
            amendment of existing notice forms or by inclusion of a 
            separate document with the notice otherwise required.
            (B) Specific requirements.--Each additional notification 
        under subparagraph (A) shall include--
                (i) the forms necessary for establishing eligibility 
            for premium reduction under this subsection,
                (ii) the name, address, and telephone number necessary 
            to contact the plan administrator and any other person 
            maintaining relevant information in connection with such 
            premium reduction,
                (iii) a description of the extended election period 
            provided for in paragraph (4)(A),
                (iv) a description of the obligation of the qualified 
            beneficiary under paragraph (2)(C) to notify the plan 
            providing continuation coverage of eligibility for 
            subsequent coverage under another group health plan or 
            eligibility for benefits under title XVIII of the Social 
            Security Act and the penalty provided under section 6720C 
            of the Internal Revenue Code of 1986 for failure to so 
            notify the plan,
                (v) a description, displayed in a prominent manner, of 
            the qualified beneficiary's right to a reduced premium and 
            any conditions on entitlement to the reduced premium, and
                (vi) a description of the option of the qualified 
            beneficiary to enroll in different coverage if the employer 
            permits such beneficiary to elect to enroll in such 
            different coverage under paragraph (1)(B).
            (C) Notice in connection with extended election periods.--
        In the case of any assistance eligible individual (or any 
        individual described in paragraph (4)(A)) who became entitled 
        to elect COBRA continuation coverage before the date of the 
        enactment of this Act, the administrator of the group health 
        plan (or other entity) involved shall provide (within 60 days 
        after the date of enactment of this Act) for the additional 
        notification required to be provided under subparagraph (A) and 
        failure to provide such notice shall be treated as a failure to 
        meet the notice requirements under the applicable COBRA 
        continuation provision.
            (D) Model notices.--Not later than 30 days after the date 
        of enactment of this Act--
                (i) the Secretary of the Labor, in consultation with 
            the Secretary of the Treasury and the Secretary of Health 
            and Human Services, shall prescribe models for the 
            additional notification required under this paragraph 
            (other than the additional notification described in clause 
            (ii)), and
                (ii) in the case of any additional notification 
            provided pursuant to subparagraph (A) under section 
            8905a(f)(2)(A) of title 5, United States Code, the Office 
            of Personnel Management shall prescribe a model for such 
            additional notification.
        (8) Regulations.--The Secretary of the Treasury may prescribe 
    such regulations or other guidance as may be necessary or 
    appropriate to carry out the provisions of this subsection, 
    including the prevention of fraud and abuse under this subsection, 
    except that the Secretary of Labor and the Secretary of Health and 
    Human Services may prescribe such regulations (including interim 
    final regulations) or other guidance as may be necessary or 
    appropriate to carry out the provisions of paragraphs (5), (7), and 
    (9).
        (9) Outreach.--The Secretary of Labor, in consultation with the 
    Secretary of the Treasury and the Secretary of Health and Human 
    Services, shall provide outreach consisting of public education and 
    enrollment assistance relating to premium reduction provided under 
    this subsection. Such outreach shall target employers, group health 
    plan administrators, public assistance programs, States, insurers, 
    and other entities as determined appropriate by such Secretaries. 
    Such outreach shall include an initial focus on those individuals 
    electing continuation coverage who are referred to in paragraph 
    (7)(C). Information on such premium reduction, including 
    enrollment, shall also be made available on websites of the 
    Departments of Labor, Treasury, and Health and Human Services.
        (10) Definitions.--For purposes of this section--
            (A) Administrator.--The term ``administrator'' has the 
        meaning given such term in section 3(16)(A) of the Employee 
        Retirement Income Security Act of 1974.
            (B) COBRA continuation coverage.--The term ``COBRA 
        continuation coverage'' means continuation coverage provided 
        pursuant to part 6 of subtitle B of title I of the Employee 
        Retirement Income Security Act of 1974 (other than under 
        section 609), title XXII of the Public Health Service Act, 
        section 4980B of the Internal Revenue Code of 1986 (other than 
        subsection (f)(1) of such section insofar as it relates to 
        pediatric vaccines), or section 8905a of title 5, United States 
        Code, or under a State program that provides comparable 
        continuation coverage. Such term does not include coverage 
        under a health flexible spending arrangement under a cafeteria 
        plan within the meaning of section 125 of the Internal Revenue 
        Code of 1986.
            (C) COBRA continuation provision.--The term ``COBRA 
        continuation provision'' means the provisions of law described 
        in subparagraph (B).
            (D) Covered employee.--The term ``covered employee'' has 
        the meaning given such term in section 607(2) of the Employee 
        Retirement Income Security Act of 1974.
            (E) Qualified beneficiary.--The term ``qualified 
        beneficiary'' has the meaning given such term in section 607(3) 
        of the Employee Retirement Income Security Act of 1974.
            (F) Group health plan.--The term ``group health plan'' has 
        the meaning given such term in section 607(1) of the Employee 
        Retirement Income Security Act of 1974.
            (G) State.--The term ``State'' includes the District of 
        Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.
            (H) Period of coverage.--Any reference in this subsection 
        to a period of coverage shall be treated as a reference to a 
        monthly or shorter period of coverage with respect to which 
        premiums are charged with respect to such coverage.
        (11) Reports.--
            (A) Interim report.--The Secretary of the Treasury shall 
        submit an interim report to the Committee on Education and 
        Labor, the Committee on Ways and Means, and the Committee on 
        Energy and Commerce of the House of Representatives and the 
        Committee on Health, Education, Labor, and Pensions and the 
        Committee on Finance of the Senate regarding the premium 
        reduction provided under this subsection that includes--
                (i) the number of individuals provided such assistance 
            as of the date of the report; and
                (ii) the total amount of expenditures incurred (with 
            administrative expenditures noted separately) in connection 
            with such assistance as of the date of the report.
            (B) Final report.--As soon as practicable after the last 
        period of COBRA continuation coverage for which premium 
        reduction is provided under this section, the Secretary of the 
        Treasury shall submit a final report to each Committee referred 
        to in subparagraph (A) that includes--
                (i) the number of individuals provided premium 
            reduction under this section;
                (ii) the average dollar amount (monthly and annually) 
            of premium reductions provided to such individuals; and
                (iii) the total amount of expenditures incurred (with 
            administrative expenditures noted separately) in connection 
            with premium reduction under this section.
        (12) COBRA premium assistance.--
            (A) In general.--Subchapter B of chapter 65 of the Internal 
        Revenue Code of 1986, as amended by this Act, is amended by 
        adding at the end the following new section:

``SEC. 6432. COBRA PREMIUM ASSISTANCE.

    ``(a) In General.--The person to whom premiums are payable under 
COBRA continuation coverage shall be reimbursed as provided in 
subsection (c) for the amount of premiums not paid by assistance 
eligible individuals by reason of section 3002(a) of the Health 
Insurance Assistance for the Unemployed Act of 2009.
    ``(b) Person Entitled to Reimbursement.--For purposes of subsection 
(a), except as otherwise provided by the Secretary, the person to whom 
premiums are payable under COBRA continuation coverage shall be treated 
as being--
        ``(1) in the case of any group health plan which is a 
    multiemployer plan (as defined in section 3(37) of the Employee 
    Retirement Income Security Act of 1974), the plan,
        ``(2) in the case of any group health plan not described in 
    paragraph (1)--
            ``(A) which is subject to the COBRA continuation provisions 
        contained in--
                ``(i) the Internal Revenue Code of 1986,
                ``(ii) the Employee Retirement Income Security Act of 
            1974,
                ``(iii) the Public Health Service Act, or
                ``(iv) title 5, United States Code, or
            ``(B) under which some or all of the coverage is not 
        provided by insurance,
    the employer maintaining the plan, and
        ``(3) in the case of any group health plan not described in 
    paragraph (1) or (2), the insurer providing the coverage under the 
    group health plan.
    ``(c) Method of Reimbursement.--Except as otherwise provided by the 
Secretary--
        ``(1) Treatment as payment of payroll taxes.--Each person 
    entitled to reimbursement under subsection (a) (and filing a claim 
    for such reimbursement at such time and in such manner as the 
    Secretary may require) shall be treated for purposes of this title 
    and section 1324(b)(2) of title 31, United States Code, as having 
    paid to the Secretary, on the date that the assistance eligible 
    individual's premium payment is received, payroll taxes in an 
    amount equal to the portion of such reimbursement which relates to 
    such premium. To the extent that the amount treated as paid under 
    the preceding sentence exceeds the amount of such person's 
    liability for such taxes, the Secretary shall credit or refund such 
    excess in the same manner as if it were an overpayment of such 
    taxes.
        ``(2) Overstatements.--Any overstatement of the reimbursement 
    to which a person is entitled under this section (and any amount 
    paid by the Secretary as a result of such overstatement) shall be 
    treated as an underpayment of payroll taxes by such person and may 
    be assessed and collected by the Secretary in the same manner as 
    payroll taxes.
        ``(3) Reimbursement contingent on payment of remaining 
    premium.--No reimbursement may be made under this section to a 
    person with respect to any assistance eligible individual until 
    after the reduced premium required under section 3002(a)(1)(A) of 
    such Act with respect to such individual has been received.
    ``(d) Definitions.--For purposes of this section--
        ``(1) Payroll taxes.--The term `payroll taxes' means--
            ``(A) amounts required to be deducted and withheld for the 
        payroll period under section 3402 (relating to wage 
        withholding),
            ``(B) amounts required to be deducted for the payroll 
        period under section 3102 (relating to FICA employee taxes), 
        and
            ``(C) amounts of the taxes imposed for the payroll period 
        under section 3111 (relating to FICA employer taxes).
        ``(2) Person.--The term `person' includes any governmental 
    entity.
    ``(e) Reporting.--Each person entitled to reimbursement under 
subsection (a) for any period shall submit such reports (at such time 
and in such manner) as the Secretary may require, including--
        ``(1) an attestation of involuntary termination of employment 
    for each covered employee on the basis of whose termination 
    entitlement to reimbursement is claimed under subsection (a),
        ``(2) a report of the amount of payroll taxes offset under 
    subsection (a) for the reporting period and the estimated offsets 
    of such taxes for the subsequent reporting period in connection 
    with reimbursements under subsection (a), and
        ``(3) a report containing the TINs of all covered employees, 
    the amount of subsidy reimbursed with respect to each covered 
    employee and qualified beneficiaries, and a designation with 
    respect to each covered employee as to whether the subsidy 
    reimbursement is for coverage of 1 individual or 2 or more 
    individuals.
    ``(f) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out this 
section, including--
        ``(1) the requirement to report information or the 
    establishment of other methods for verifying the correct amounts of 
    reimbursements under this section, and
        ``(2) the application of this section to group health plans 
    that are multiemployer plans (as defined in section 3(37) of the 
    Employee Retirement Income Security Act of 1974).''.
            (B) Social security trust funds held harmless.--In 
        determining any amount transferred or appropriated to any fund 
        under the Social Security Act, section 6432 of the Internal 
        Revenue Code of 1986 shall not be taken into account.
            (C) Clerical amendment.--The table of sections for 
        subchapter B of chapter 65 of the Internal Revenue Code of 1986 
        is amended by adding at the end the following new item:
``Sec. 6432. COBRA premium assistance.''.
            (D) Effective date.--The amendments made by this paragraph 
        shall apply to premiums to which subsection (a)(1)(A) applies.
            (E) Special rule.--
                (i) In general.--In the case of an assistance eligible 
            individual who pays, with respect to the first period of 
            COBRA continuation coverage to which subsection (a)(1)(A) 
            applies or the immediately subsequent period, the full 
            premium amount for such coverage, the person to whom such 
            payment is payable shall--

                    (I) make a reimbursement payment to such individual 
                for the amount of such premium paid in excess of the 
                amount required to be paid under subsection (a)(1)(A); 
                or
                    (II) provide credit to the individual for such 
                amount in a manner that reduces one or more subsequent 
                premium payments that the individual is required to pay 
                under such subsection for the coverage involved.

                (ii) Reimbursing employer.--A person to which clause 
            (i) applies shall be reimbursed as provided for in section 
            6432 of the Internal Revenue Code of 1986 for any payment 
            made, or credit provided, to the employee under such 
            clause.
                (iii) Payment or credits.--Unless it is reasonable to 
            believe that the credit for the excess payment in clause 
            (i)(II) will be used by the assistance eligible individual 
            within 180 days of the date on which the person receives 
            from the individual the payment of the full premium amount, 
            a person to which clause (i) applies shall make the payment 
            required under such clause to the individual within 60 days 
            of such payment of the full premium amount. If, as of any 
            day within the 180-day period, it is no longer reasonable 
            to believe that the credit will be used during that period, 
            payment equal to the remainder of the credit outstanding 
            shall be made to the individual within 60 days of such day.
        (13) Penalty for failure to notify health plan of cessation of 
    eligibility for premium assistance.--
            (A) In general.--Part I of subchapter B of chapter 68 of 
        the Internal Revenue Code of 1986 is amended by adding at the 
        end the following new section:

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

    ``(a) In General.--Any person required to notify a group health 
plan under section 3002(a)(2)(C)) of the Health Insurance Assistance 
for the Unemployed Act of 2009 who fails to make such a notification at 
such time and in such manner as the Secretary of Labor may require 
shall pay a penalty of 110 percent of the premium reduction provided 
under such section after termination of eligibility under such 
subsection.
    ``(b) Reasonable Cause Exception.--No penalty shall be imposed 
under subsection (a) with respect to any failure if it is shown that 
such failure is due to reasonable cause and not to willful neglect.''.
            (B) Clerical amendment.--The table of sections of part I of 
        subchapter B of chapter 68 of such Code is amended by adding at 
        the end the following new item:
``Sec. 6720C. Penalty for failure to notify health plan of cessation of 
          eligibility for COBRA premium assistance.''.
            (C) Effective date.--The amendments made by this paragraph 
        shall apply to failures occurring after the date of the 
        enactment of this Act.
        (14) Coordination with hctc.--
            (A) In general.--Subsection (g) of section 35 of the 
        Internal Revenue Code of 1986 is amended by redesignating 
        paragraph (9) as paragraph (10) and inserting after paragraph 
        (8) the following new paragraph:
        ``(9) COBRA premium assistance.--In the case of an assistance 
    eligible individual who receives premium reduction for COBRA 
    continuation coverage under section 3002(a) of the Health Insurance 
    Assistance for the Unemployed Act of 2009 for any month during the 
    taxable year, such individual shall not be treated as an eligible 
    individual, a certified individual, or a qualifying family member 
    for purposes of this section or section 7527 with respect to such 
    month.''.
            (B) Effective date.--The amendment made by subparagraph (A) 
        shall apply to taxable years ending after the date of the 
        enactment of this Act.
        (15) Exclusion of cobra premium assistance from gross income.--
            (A) In general.--Part III of subchapter B of chapter 1 of 
        the Internal Revenue Code of 1986 is amended by inserting after 
        section 139B the following new section:

``SEC. 139C. COBRA PREMIUM ASSISTANCE.

    ``In the case of an assistance eligible individual (as defined in 
section 3002 of the Health Insurance Assistance for the Unemployed Act 
of 2009), gross income does not include any premium reduction provided 
under subsection (a) of such section.''.
            (B) Clerical amendment.--The table of sections for part III 
        of subchapter B of chapter 1 of such Code is amended by 
        inserting after the item relating to section 139B the following 
        new item:
``Sec. 139C. COBRA premium assistance.''.
            (C) Effective date.--The amendments made by this paragraph 
        shall apply to taxable years ending after the date of the 
        enactment of this Act.
    (b) Elimination of Premium Subsidy for High-Income Individuals.--
        (1) Recapture of subsidy for high-income individuals.--If--
            (A) premium assistance is provided under this section with 
        respect to any COBRA continuation coverage which covers the 
        taxpayer, the taxpayer's spouse, or any dependent (within the 
        meaning of section 152 of the Internal Revenue Code of 1986, 
        determined without regard to subsections (b)(1), (b)(2), and 
        (d)(1)(B) thereof) of the taxpayer during any portion of the 
        taxable year, and
            (B) the taxpayer's modified adjusted gross income for such 
        taxable year exceeds $125,000 ($250,000 in the case of a joint 
        return),
    then the tax imposed by chapter 1 of such Code with respect to the 
    taxpayer for such taxable year shall be increased by the amount of 
    such assistance.
        (2) Phase-in of recapture.--
            (A) In general.--In the case of a taxpayer whose modified 
        adjusted gross income for the taxable year does not exceed 
        $145,000 ($290,000 in the case of a joint return), the increase 
        in the tax imposed under paragraph (1) shall not exceed the 
        phase-in percentage of such increase (determined without regard 
        to this paragraph).
            (B) Phase-in percentage.--For purposes of this subsection, 
        the term ``phase-in percentage'' means the ratio (expressed as 
        a percentage) obtained by dividing--
                (i) the excess of described in subparagraph (B) of 
            paragraph (1), by
                (ii) $20,000 ($40,000 in the case of a joint return).
        (3) Option for high-income individuals to waive assistance and 
    avoid recapture.--Notwithstanding subsection (a)(3), an individual 
    shall not be treated as an assistance eligible individual for 
    purposes of this section and section 6432 of the Internal Revenue 
    Code of 1986 if such individual--
            (A) makes a permanent election (at such time and in such 
        form and manner as the Secretary of the Treasury may prescribe) 
        to waive the right to the premium assistance provided under 
        this section, and
            (B) notifies the entity to whom premiums are reimbursed 
        under section 6432(a) of such Code of such election.
        (4) Modified adjusted gross income.--For purposes of this 
    subsection, the term ``modified adjusted gross income'' means the 
    adjusted gross income (as defined in section 62 of the Internal 
    Revenue Code of 1986) of the taxpayer for the taxable year 
    increased by any amount excluded from gross income under section 
    911, 931, or 933 of such Code.
        (5) Credits not allowed against tax, etc.--For purposes 
    determining regular tax liability under section 26(b) of such Code, 
    the increase in tax under this subsection shall not be treated as a 
    tax imposed under chapter 1 of such Code.
        (6) Regulations.--The Secretary of the Treasury shall issue 
    such regulations or other guidance as are necessary or appropriate 
    to carry out this subsection, including requirements that the 
    entity to whom premiums are reimbursed under section 6432(a) of the 
    Internal Revenue Code of 1986 report to the Secretary, and to each 
    assistance eligible individual, the amount of premium assistance 
    provided under subsection (a) with respect to each such individual.
        (7) Effective date.--The provisions of this subsection shall 
    apply to taxable years ending after the date of the enactment of 
    this Act.

    TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY; 
                   MISCELLANEOUS MEDICARE PROVISIONS

SEC. 4001. TABLE OF CONTENTS OF TITLE.

    The table of contents of this title is as follows:

     TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY; 
                    MISCELLANEOUS MEDICARE PROVISIONS

Sec. 4001. Table of contents of title.

                     Subtitle A--Medicare Incentives

Sec. 4101. Incentives for eligible professionals.
Sec. 4102. Incentives for hospitals.
Sec. 4103. Treatment of payments and savings; implementation funding.
Sec. 4104. Studies and reports on health information technology.

                     Subtitle B--Medicaid Incentives

Sec. 4201. Medicaid provider HIT adoption and operation payments; 
          implementation funding.

              Subtitle C--Miscellaneous Medicare Provisions

Sec. 4301. Moratoria on certain Medicare regulations.
Sec. 4302. Long-term care hospital technical corrections.

                    Subtitle A--Medicare Incentives

SEC. 4101. INCENTIVES FOR ELIGIBLE PROFESSIONALS.

    (a) Incentive Payments.--Section 1848 of the Social Security Act 
(42 U.S.C. 1395w-4) is amended by adding at the end the following new 
subsection:
    ``(o) Incentives for Adoption and Meaningful Use of Certified EHR 
Technology.--
        ``(1) Incentive payments.--
            ``(A) In general.--
                ``(i) In general.--Subject to the succeeding 
            subparagraphs of this paragraph, with respect to covered 
            professional services furnished by an eligible professional 
            during a payment year (as defined in subparagraph (E)), if 
            the eligible professional is a meaningful EHR user (as 
            determined under paragraph (2)) for the EHR reporting 
            period with respect to such year, in addition to the amount 
            otherwise paid under this part, there also shall be paid to 
            the eligible professional (or to an employer or facility in 
            the cases described in clause (A) of section 1842(b)(6)), 
            from the Federal Supplementary Medical Insurance Trust Fund 
            established under section 1841 an amount equal to 75 
            percent of the Secretary's estimate (based on claims 
            submitted not later than 2 months after the end of the 
            payment year) of the allowed charges under this part for 
            all such covered professional services furnished by the 
            eligible professional during such year.
                ``(ii) No incentive payments with respect to years 
            after 2016.--No incentive payments may be made under this 
            subsection with respect to a year after 2016.
            ``(B) Limitations on amounts of incentive payments.--
                ``(i) In general.--In no case shall the amount of the 
            incentive payment provided under this paragraph for an 
            eligible professional for a payment year exceed the 
            applicable amount specified under this subparagraph with 
            respect to such eligible professional and such year.
                ``(ii) Amount.--Subject to clauses (iii) through (v), 
            the applicable amount specified in this subparagraph for an 
            eligible professional is as follows:

                    ``(I) For the first payment year for such 
                professional, $15,000 (or, if the first payment year 
                for such eligible professional is 2011 or 2012, 
                $18,000).
                    ``(II) For the second payment year for such 
                professional, $12,000.
                    ``(III) For the third payment year for such 
                professional, $8,000.
                    ``(IV) For the fourth payment year for such 
                professional, $4,000.
                    ``(V) For the fifth payment year for such 
                professional, $2,000.
                    ``(VI) For any succeeding payment year for such 
                professional, $0.

                ``(iii) Phase down for eligible professionals first 
            adopting ehr after 2013.--If the first payment year for an 
            eligible professional is after 2013, then the amount 
            specified in this subparagraph for a payment year for such 
            professional is the same as the amount specified in clause 
            (ii) for such payment year for an eligible professional 
            whose first payment year is 2013.
                ``(iv) Increase for certain eligible professionals.--In 
            the case of an eligible professional who predominantly 
            furnishes services under this part in an area that is 
            designated by the Secretary (under section 332(a)(1)(A) of 
            the Public Health Service Act) as a health professional 
            shortage area, the amount that would otherwise apply for a 
            payment year for such professional under subclauses (I) 
            through (V) of clause (ii) shall be increased by 10 
            percent. In implementing the preceding sentence, the 
            Secretary may, as determined appropriate, apply provisions 
            of subsections (m) and (u) of section 1833 in a similar 
            manner as such provisions apply under such subsection.
                ``(v) No incentive payment if first adopting after 
            2014.--If the first payment year for an eligible 
            professional is after 2014 then the applicable amount 
            specified in this subparagraph for such professional for 
            such year and any subsequent year shall be $0.
            ``(C) Non-application to hospital-based eligible 
        professionals.--
                ``(i) In general.--No incentive payment may be made 
            under this paragraph in the case of a hospital-based 
            eligible professional.
                ``(ii) Hospital-based eligible professional.--For 
            purposes of clause (i), the term `hospital-based eligible 
            professional' means, with respect to covered professional 
            services furnished by an eligible professional during the 
            EHR reporting period for a payment year, an eligible 
            professional, such as a pathologist, anesthesiologist, or 
            emergency physician, who furnishes substantially all of 
            such services in a hospital setting (whether inpatient or 
            outpatient) and through the use of the facilities and 
            equipment, including qualified electronic health records, 
            of the hospital. The determination of whether an eligible 
            professional is a hospital-based eligible professional 
            shall be made on the basis of the site of service (as 
            defined by the Secretary) and without regard to any 
            employment or billing arrangement between the eligible 
            professional and any other provider.
            ``(D) Payment.--
                ``(i) Form of payment.--The payment under this 
            paragraph may be in the form of a single consolidated 
            payment or in the form of such periodic installments as the 
            Secretary may specify.
                ``(ii) Coordination of application of limitation for 
            professionals in different practices.--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 an EHR reporting period for a payment year (or, for 
        purposes of subsection (a)(7), for an EHR reporting period 
        under such subsection for a year) if each of the following 
        requirements is met:
                ``(i) Meaningful use of certified ehr technology.--The 
            eligible professional demonstrates to the satisfaction of 
            the Secretary, in accordance with subparagraph (C)(i), that 
            during such period the professional is using certified EHR 
            technology in a meaningful manner, which shall include the 
            use of electronic prescribing as determined to be 
            appropriate by the Secretary.
                ``(ii) Information exchange.--The eligible professional 
            demonstrates to the satisfaction of the Secretary, in 
            accordance with subparagraph (C)(i), that during such 
            period such certified EHR technology is connected in a 
            manner that provides, in accordance with law and standards 
            applicable to the exchange of information, for the 
            electronic exchange of health information to improve the 
            quality of health care, such as promoting care 
            coordination.
                ``(iii) Reporting on measures using ehr.--Subject to 
            subparagraph (B)(ii) and using such certified EHR 
            technology, the eligible professional submits information 
            for such period, in a form and manner specified by the 
            Secretary, on such clinical quality measures and such other 
            measures as selected by the Secretary under subparagraph 
            (B)(i).
        The Secretary may provide for the use of alternative means for 
        meeting the requirements of clauses (i), (ii), and (iii) in the 
        case of an eligible professional furnishing covered 
        professional services in a group practice (as defined by the 
        Secretary). The Secretary shall seek to improve the use of 
        electronic health records and health care quality over time by 
        requiring more stringent measures of meaningful use selected 
        under this paragraph.
            ``(B) Reporting on measures.--
                ``(i) Selection.--The Secretary shall select measures 
            for purposes of subparagraph (A)(iii) but only consistent 
            with the following:

                    ``(I) The Secretary shall provide preference to 
                clinical quality measures that have been endorsed by 
                the entity with a contract with the Secretary under 
                section 1890(a).
                    ``(II) 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--
                ``(i) the methodology and standards for determining 
            payment amounts under this subsection and payment 
            adjustments under subsection (a)(7)(A), including the 
            limitation under paragraph (1)(B) and coordination under 
            clauses (ii) and (iii) of paragraph (1)(D);
                ``(ii) the methodology and standards for determining a 
            meaningful EHR user under paragraph (2), including 
            selection of measures under paragraph (2)(B), specification 
            of the means of demonstrating meaningful EHR use under 
            paragraph (2)(C), and the hardship exception under 
            subsection (a)(7)(B);
                ``(iii) the methodology and standards for determining a 
            hospital-based eligible professional under paragraph 
            (1)(C); and
                ``(iv) the specification of reporting periods under 
            paragraph (5) and the selection of the form of payment 
            under paragraph (1)(D)(i).
            ``(D) Posting on website.--The Secretary shall post on the 
        Internet website of the Centers for Medicare & Medicaid 
        Services, in an easily understandable format, a list of the 
        names, business addresses, and business phone numbers of the 
        eligible professionals who are meaningful EHR users and, as 
        determined appropriate by the Secretary, of group practices 
        receiving incentive payments under paragraph (1).
        ``(4) Certified ehr technology defined.--For purposes of this 
    section, the term `certified EHR technology' means a qualified 
    electronic health record (as defined in section 3000(13) of the 
    Public Health Service Act) that is certified pursuant to section 
    3001(c)(5) of such Act as meeting standards adopted under section 
    3004 of such Act that are applicable to the type of record involved 
    (as determined by the Secretary, such as an ambulatory electronic 
    health record for office-based physicians or an inpatient hospital 
    electronic health record for hospitals).
        ``(5) Definitions.--For purposes of this subsection:
            ``(A) Covered professional services.--The term `covered 
        professional services' has the meaning given such term in 
        subsection (k)(3).
            ``(B) EHR reporting period.--The term `EHR reporting 
        period' means, with respect to a payment year, any period (or 
        periods) as specified by the Secretary.
            ``(C) Eligible professional.--The term `eligible 
        professional' means a physician, as defined in section 
        1861(r).''.
    (b) Incentive Payment Adjustment.--Section 1848(a) of the Social 
Security Act (42 U.S.C. 1395w-4(a)) is amended by adding at the end the 
following new paragraph:
        ``(7) Incentives for meaningful use of certified ehr 
    technology.--
            ``(A) Adjustment.--
                ``(i) In general.--Subject to subparagraphs (B) and 
            (D), with respect to covered professional services 
            furnished by an eligible professional during 2015 or any 
            subsequent payment year, if the eligible professional is 
            not a meaningful EHR user (as determined under subsection 
            (o)(2)) for an EHR reporting period for the year, the fee 
            schedule amount for such services furnished by such 
            professional during the year (including the fee schedule 
            amount for purposes of determining a payment based on such 
            amount) shall be equal to the applicable percent of the fee 
            schedule amount that would otherwise apply to such services 
            under this subsection (determined after application of 
            paragraph (3) but without regard to this paragraph).
                ``(ii) Applicable percent.--Subject to clause (iii), 
            for purposes of clause (i), the term `applicable percent' 
            means--

                    ``(I) for 2015, 99 percent (or, in the case of an 
                eligible professional who was subject to the 
                application of the payment adjustment under section 
                1848(a)(5) for 2014, 98 percent);
                    ``(II) for 2016, 98 percent; and
                    ``(III) for 2017 and each subsequent year, 97 
                percent.

                ``(iii) Authority to decrease applicable percentage for 
            2018 and subsequent years.--For 2018 and each subsequent 
            year, if the Secretary finds that the proportion of 
            eligible professionals who are meaningful EHR users (as 
            determined under subsection (o)(2)) is less than 75 
            percent, the applicable percent shall be decreased by 1 
            percentage point from the applicable percent in the 
            preceding year, but in no case shall the applicable percent 
            be less than 95 percent.
            ``(B) Significant hardship exception.--The Secretary may, 
        on a case-by-case basis, exempt an eligible professional from 
        the application of the payment adjustment under subparagraph 
        (A) if the Secretary determines, subject to annual renewal, 
        that compliance with the requirement for being a meaningful EHR 
        user would result in a significant hardship, such as in the 
        case of an eligible professional who practices in a rural area 
        without sufficient Internet access. In no case may an eligible 
        professional be granted an exemption under this subparagraph 
        for more than 5 years.
            ``(C) Application of physician reporting system rules.--
        Paragraphs (5), (6), and (8) of subsection (k) shall apply for 
        purposes of this paragraph in the same manner as they apply for 
        purposes of such subsection.
            ``(D) Non-application to hospital-based eligible 
        professionals.--No payment adjustment may be made under 
        subparagraph (A) in the case of hospital-based eligible 
        professionals (as defined in subsection (o)(1)(C)(ii)).
            ``(E) Definitions.--For purposes of this paragraph:
                ``(i) Covered professional services.--The term `covered 
            professional services' has the meaning given such term in 
            subsection (k)(3).
                ``(ii) EHR reporting period.--The term `EHR reporting 
            period' means, with respect to a year, a period (or 
            periods) specified by the Secretary.
                ``(iii) Eligible professional.--The term `eligible 
            professional' means a physician, as defined in section 
            1861(r).''.
    (c) Application to Certain MA-Affiliated Eligible Professionals.--
Section 1853 of the Social Security Act (42 U.S.C. 1395w-23) is amended 
by adding at the end the following new subsection:
    ``(l) Application of Eligible Professional Incentives for Certain 
MA Organizations for Adoption and Meaningful Use of Certified EHR 
Technology.--
        ``(1) In general.--Subject to paragraphs (3) and (4), in the 
    case of a qualifying MA organization, the provisions of sections 
    1848(o) and 1848(a)(7) shall apply with respect to eligible 
    professionals described in paragraph (2) of the organization who 
    the organization attests under paragraph (6) to be meaningful EHR 
    users in a similar manner as they apply to eligible professionals 
    under such sections. Incentive payments under paragraph (3) shall 
    be made to and payment adjustments under paragraph (4) shall apply 
    to such qualifying organizations.
        ``(2) Eligible professional described.--With respect to a 
    qualifying MA organization, an eligible professional described in 
    this paragraph is an eligible professional (as defined for purposes 
    of section 1848(o)) who--
            ``(A)(i) is employed by the organization; or
            ``(ii)(I) is employed by, or is a partner of, an entity 
        that through contract with the organization furnishes at least 
        80 percent of the entity's Medicare patient care services to 
        enrollees of such organization; and
            ``(II) furnishes at least 80 percent of the professional 
        services of the eligible professional covered under this title 
        to enrollees of the organization; and
            ``(B) furnishes, on average, at least 20 hours per week of 
        patient care services.
        ``(3) Eligible professional incentive payments.--
            ``(A) In general.--In applying section 1848(o) under 
        paragraph (1), instead of the additional payment amount under 
        section 1848(o)(1)(A) and subject to subparagraph (B), the 
        Secretary may substitute an amount determined by the Secretary 
        to the extent feasible and practical to be similar to the 
        estimated amount in the aggregate that would be payable if 
        payment for services furnished by such professionals was 
        payable under part B instead of this part.
            ``(B) Avoiding duplication of payments.--
                ``(i) In general.--In the case of an eligible 
            professional described in paragraph (2)--

                    ``(I) that is eligible for the maximum incentive 
                payment under section 1848(o)(1)(A) for the same 
                payment period, the payment incentive shall be made 
                only under such section and not under this subsection; 
                and
                    ``(II) that is eligible for less than such maximum 
                incentive payment for the same payment period, the 
                payment incentive shall be made only under this 
                subsection and not under section 1848(o)(1)(A).

                ``(ii) Methods.--In the case of an eligible 
            professional described in paragraph (2) who is eligible for 
            an incentive payment under section 1848(o)(1)(A) but is not 
            described in clause (i) for the same payment period, the 
            Secretary shall develop a process--

                    ``(I) to ensure that duplicate payments are not 
                made with respect to an eligible professional both 
                under this subsection and under section 1848(o)(1)(A); 
                and
                    ``(II) to collect data from Medicare Advantage 
                organizations to ensure against such duplicate 
                payments.

            ``(C) Fixed schedule for application of limitation on 
        incentive payments for all eligible professionals.--In applying 
        section 1848(o)(1)(B)(ii) under subparagraph (A), in accordance 
        with rules specified by the Secretary, a qualifying MA 
        organization shall specify a year (not earlier than 2011) that 
        shall be treated as the first payment year for all eligible 
        professionals with respect to such organization.
        ``(4) Payment adjustment.--
            ``(A) In general.--In applying section 1848(a)(7) under 
        paragraph (1), instead of the payment adjustment being an 
        applicable percent of the fee schedule amount for a year under 
        such section, subject to subparagraph (D), the payment 
        adjustment under paragraph (1) shall be equal to the percent 
        specified in subparagraph (B) for such year of the payment 
        amount otherwise provided under this section for such year.
            ``(B) Specified percent.--The percent specified under this 
        subparagraph for a year is 100 percent minus a number of 
        percentage points equal to the product of--
                ``(i) the number of percentage points by which the 
            applicable percent (under section 1848(a)(7)(A)(ii)) for 
            the year is less than 100 percent; and
                ``(ii) the Medicare physician expenditure proportion 
            specified in subparagraph (C) for the year.
            ``(C) Medicare physician expenditure proportion.--The 
        Medicare physician expenditure proportion under this 
        subparagraph for a year is the Secretary's estimate of the 
        proportion, of the expenditures under parts A and B that are 
        not attributable to this part, that are attributable to 
        expenditures for physicians' services.
            ``(D) Application of payment adjustment.--In the case that 
        a qualifying MA organization attests that not all eligible 
        professionals of the organization are meaningful EHR users with 
        respect to a year, the Secretary shall apply the payment 
        adjustment under this paragraph based on the proportion of all 
        such eligible professionals of the organization that are not 
        meaningful EHR users for such year.
        ``(5) Qualifying ma organization defined.--In this subsection 
    and subsection (m), the term `qualifying MA organization' means a 
    Medicare Advantage organization that is organized as a health 
    maintenance organization (as defined in section 2791(b)(3) of the 
    Public Health Service Act).
        ``(6) Meaningful ehr user attestation.--For purposes of this 
    subsection and subsection (m), a qualifying MA organization shall 
    submit an attestation, in a form and manner specified by the 
    Secretary which may include the submission of such attestation as 
    part of submission of the initial bid under section 
    1854(a)(1)(A)(iv), identifying--
            ``(A) whether each eligible professional described in 
        paragraph (2), with respect to such organization is a 
        meaningful EHR user (as defined in section 1848(o)(2)) for a 
        year specified by the Secretary; and
            ``(B) whether each eligible hospital described in 
        subsection (m)(1), with respect to such organization, is a 
        meaningful EHR user (as defined in section 1886(n)(3)) for an 
        applicable period specified by the Secretary.
        ``(7) Posting on website.--The Secretary shall post on the 
    Internet website of the Centers for Medicare & Medicaid Services, 
    in an easily understandable format, a list of the names, business 
    addresses, and business phone numbers of--
            ``(A) each qualifying MA organization receiving an 
        incentive payment under this subsection for eligible 
        professionals of the organization; and
            ``(B) the eligible professionals of such organization for 
        which such incentive payment is based.
        ``(8) Limitation on review.--There shall be no administrative 
    or judicial review under section 1869, section 1878, or otherwise, 
    of--
            ``(A) the methodology and standards for determining payment 
        amounts and payment adjustments under this subsection, 
        including avoiding duplication of payments under paragraph 
        (3)(B) and the specification of rules for the fixed schedule 
        for application of limitation on incentive payments for all 
        eligible professionals under paragraph (3)(C);
            ``(B) the methodology and standards for determining 
        eligible professionals under paragraph (2); and
            ``(C) the methodology and standards for determining a 
        meaningful EHR user under section 1848(o)(2), including 
        specification of the means of demonstrating meaningful EHR use 
        under section 1848(o)(3)(C) and selection of measures under 
        section 1848(o)(3)(B).''.
    (d) Study and Report Relating to MA Organizations.--
        (1) Study.--The Secretary of Health and Human Services shall 
    conduct a study on the extent to which and manner in which payment 
    incentives and adjustments (such as under sections 1848(o) and 
    1848(a)(7) of the Social Security Act) could be made available to 
    professionals, as defined in 1861(r), who are not eligible for HIT 
    incentive payments under section 1848(o) and receive payments for 
    Medicare patient services nearly-exclusively through contractual 
    arrangements with one or more Medicare Advantage organizations, or 
    an intermediary organization or organizations with contracts with 
    Medicare Advantage organizations. Such study shall assess 
    approaches for measuring meaningful use of qualified EHR technology 
    among such professionals and mechanisms for delivering incentives 
    and adjustments to those professionals, including through incentive 
    payments and adjustments through Medicare Advantage organizations 
    or intermediary organizations.
        (2) Report.--Not later than 120 days after the date of the 
    enactment of this Act, the Secretary of Health and Human Services 
    shall submit to Congress a report on the findings and the 
    conclusions of the study conducted under paragraph (1), together 
    with recommendations for such legislation and administrative action 
    as the Secretary determines appropriate.
    (e) Conforming Amendments.--Section 1853 of the Social Security Act 
(42 U.S.C. 1395w-23) is amended--
        (1) in subsection (a)(1)(A), by striking ``and (i)'' and 
    inserting ``(i), and (l)'';
        (2) in subsection (c)--
            (A) in paragraph (1)(D)(i), by striking ``section 1886(h)'' 
        and inserting ``sections 1848(o) and 1886(h)''; and
            (B) in paragraph (6)(A), by inserting after ``under part 
        B,'' the following: ``excluding expenditures attributable to 
        subsections (a)(7) and (o) of section 1848,''; and
        (3) in subsection (f), by inserting ``and for payments under 
    subsection (l)'' after ``with the organization''.
    (f) Conforming Amendments to E-Prescribing.--
        (1) Section 1848(a)(5)(A) of the Social Security Act (42 U.S.C. 
    1395w-4(a)(5)(A)) is amended--
            (A) in clause (i), by striking ``or any subsequent year'' 
        and inserting ``, 2013 or 2014''; and
            (B) in clause (ii), by striking ``and each subsequent 
        year''.
        (2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w-4(m)(2)) is 
    amended--
            (A) in subparagraph (A), by striking ``For 2009'' and 
        inserting ``Subject to subparagraph (D), for 2009''; and
            (B) by adding at the end the following new subparagraph:
            ``(D) Limitation with respect to ehr incentive payments.--
        The provisions of this paragraph shall not apply to an eligible 
        professional (or, in the case of a group practice under 
        paragraph (3)(C), to the group practice) if, for the EHR 
        reporting period the eligible professional (or group practice) 
        receives an incentive payment under subsection (o)(1)(A) with 
        respect to a certified EHR technology (as defined in subsection 
        (o)(4)) that has the capability of electronic prescribing.''.

SEC. 4102. INCENTIVES FOR HOSPITALS.

    (a) Incentive Payment.--
        (1) In general.--Section 1886 of the Social Security Act (42 
    U.S.C. 1395ww) is amended by adding at the end the following new 
    subsection:
    ``(n) Incentives for Adoption and Meaningful Use of Certified EHR 
Technology.--
        ``(1) In general.--Subject to the succeeding provisions of this 
    subsection, with respect to inpatient hospital services furnished 
    by an eligible hospital during a payment year (as defined in 
    paragraph (2)(G)), if the eligible hospital is a meaningful EHR 
    user (as determined under paragraph (3)) for the EHR reporting 
    period with respect to such year, in addition to the amount 
    otherwise paid under this section, there also shall be paid to the 
    eligible hospital, from the Federal Hospital Insurance Trust Fund 
    established under section 1817, an amount equal to the applicable 
    amount specified in paragraph (2)(A) for the hospital for such 
    payment year.
        ``(2) Payment amount.--
            ``(A) In general.--Subject to the succeeding subparagraphs 
        of this paragraph, the applicable amount specified in this 
        subparagraph for an eligible hospital for a payment year is 
        equal to the product of the following:
                ``(i) Initial amount.--The sum of--

                    ``(I) the base amount specified in subparagraph 
                (B); plus
                    ``(II) the discharge related amount specified in 
                subparagraph (C) for a 12-month period selected by the 
                Secretary with respect to such payment year.

                ``(ii) Medicare share.--The Medicare share as specified 
            in subparagraph (D) for the eligible hospital for a period 
            selected by the Secretary with respect to such payment 
            year.
                ``(iii) Transition factor.--The transition factor 
            specified in subparagraph (E) for the eligible hospital for 
            the payment year.
            ``(B) Base amount.--The base amount specified in this 
        subparagraph is $2,000,000.
            ``(C) Discharge related amount.--The discharge related 
        amount specified in this subparagraph for a 12-month period 
        selected by the Secretary shall be determined as the sum of the 
        amount, estimated based upon total discharges for the eligible 
        hospital (regardless of any source of payment) for the period, 
        for each discharge up to the 23,000th discharge as follows:
                ``(i) For the first through 1,149th discharge, $0.
                ``(ii) For the 1,150th through the 23,000th discharge, 
            $200.
                ``(iii) For any discharge greater than the 23,000th, 
            $0.
            ``(D) Medicare share.--The Medicare share specified under 
        this subparagraph for an eligible hospital for a period 
        selected by the Secretary for a payment year is equal to the 
        fraction--
                ``(i) the numerator of which is the sum (for such 
            period and with respect to the eligible hospital) of--

                    ``(I) the estimated number of inpatient-bed-days 
                (as established by the Secretary) which are 
                attributable to individuals with respect to whom 
                payment may be made under part A; and
                    ``(II) the estimated number of inpatient-bed-days 
                (as so established) which are attributable to 
                individuals who are enrolled with a Medicare Advantage 
                organization under part C; and

                ``(ii) the denominator of which is the product of--

                    ``(I) the estimated total number of inpatient-bed-
                days with respect to the eligible hospital during such 
                period; and
                    ``(II) the estimated total amount of the eligible 
                hospital's charges during such period, not including 
                any charges that are attributable to charity care (as 
                such term is used for purposes of hospital cost 
                reporting under this title), divided by the estimated 
                total amount of the hospital's charges during such 
                period.

        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 
        an EHR reporting period for a payment year (or, for purposes of 
        subsection (b)(3)(B)(ix), for an EHR reporting period under 
        such subsection for a fiscal year) if each of the following 
        requirements are met:
                ``(i) Meaningful use of certified ehr technology.--The 
            eligible hospital demonstrates to the satisfaction of the 
            Secretary, in accordance with subparagraph (C)(i), that 
            during such period the hospital is using certified EHR 
            technology in a meaningful manner.
                ``(ii) Information exchange.--The eligible hospital 
            demonstrates to the satisfaction of the Secretary, in 
            accordance with subparagraph (C)(i), that during such 
            period such certified EHR technology is connected in a 
            manner that provides, in accordance with law and standards 
            applicable to the exchange of information, for the 
            electronic exchange of health information to improve the 
            quality of health care, such as promoting care 
            coordination.
                ``(iii) Reporting on measures using ehr.--Subject to 
            subparagraph (B)(ii) and using such certified EHR 
            technology, the eligible hospital submits information for 
            such period, in a form and manner specified by the 
            Secretary, on such clinical quality measures and such other 
            measures as selected by the Secretary under subparagraph 
            (B)(i).
        The Secretary shall seek to improve the use of electronic 
        health records and health care quality over time by requiring 
        more stringent measures of meaningful use selected under this 
        paragraph.
            ``(B) Reporting on measures.--
                ``(i) Selection.--The Secretary shall select measures 
            for purposes of subparagraph (A)(iii) but only consistent 
            with the following:

                    ``(I) The Secretary shall provide preference to 
                clinical quality measures that have been selected for 
                purposes of applying subsection (b)(3)(B)(viii) or that 
                have been endorsed by the entity with a contract with 
                the Secretary under section 1890(a).
                    ``(II) Prior to any measure (other than a clinical 
                quality measure that has been selected for purposes of 
                applying subsection (b)(3)(B)(viii)) being selected 
                under this subparagraph, the Secretary shall publish in 
                the Federal Register such measure and provide for a 
                period of public comment on such measure.

                ``(ii) Limitations.--The Secretary may not require the 
            electronic reporting of information on clinical quality 
            measures under subparagraph (A)(iii) unless the Secretary 
            has the capacity to accept the information electronically, 
            which may be on a pilot basis.
                ``(iii) Coordination of reporting of information.--In 
            selecting such measures, and in establishing the form and 
            manner for reporting measures under subparagraph (A)(iii), 
            the Secretary shall seek to avoid redundant or duplicative 
            reporting with reporting otherwise required, including 
            reporting under subsection (b)(3)(B)(viii).
            ``(C) Demonstration of meaningful use of certified ehr 
        technology and information exchange.--
                ``(i) In general.--An eligible hospital may satisfy the 
            demonstration requirement of clauses (i) and (ii) of 
            subparagraph (A) through means specified by the Secretary, 
            which may include--

                    ``(I) an attestation;
                    ``(II) the submission of claims with appropriate 
                coding (such as a code indicating that inpatient care 
                was documented using certified EHR technology);
                    ``(III) a survey response;
                    ``(IV) reporting under subparagraph (A)(iii); and
                    ``(V) other means specified by the Secretary.

                ``(ii) Use of part d data.--Notwithstanding sections 
            1860D-15(d)(2)(B) and 1860D-15(f)(2), the Secretary may use 
            data regarding drug claims submitted for purposes of 
            section 1860D-15 that are necessary for purposes of 
            subparagraph (A).
        ``(4) Application.--
            ``(A) Limitations on review.--There shall be no 
        administrative or judicial review under section 1869, section 
        1878, or otherwise, of--
                ``(i) the methodology and standards for determining 
            payment amounts under this subsection and payment 
            adjustments under subsection (b)(3)(B)(ix), including 
            selection of periods under paragraph (2) for determining, 
            and making estimates or using proxies of, discharges under 
            paragraph (2)(C) and inpatient-bed-days, hospital charges, 
            charity charges, and Medicare share under paragraph (2)(D);
                ``(ii) the methodology and standards for determining a 
            meaningful EHR user under paragraph (3), including 
            selection of measures under paragraph (3)(B), specification 
            of the means of demonstrating meaningful EHR use under 
            paragraph (3)(C), and the hardship exception under 
            subsection (b)(3)(B)(ix)(II); and
                ``(iii) the specification of EHR reporting periods 
            under paragraph (6)(B) and the selection of the form of 
            payment under paragraph (2)(F).
            ``(B) Posting on website.--The Secretary shall post on the 
        Internet website of the Centers for Medicare & Medicaid 
        Services, in an easily understandable format, a list of the 
        names of the eligible hospitals that are meaningful EHR users 
        under this subsection or subsection (b)(3)(B)(ix) (and a list 
        of the names of critical access hospitals to which paragraph 
        (3) or (4) of section 1814(l) applies), and other relevant data 
        as determined appropriate by the Secretary. The Secretary shall 
        ensure that an eligible hospital (or critical access hospital) 
        has the opportunity to review the other relevant data that are 
        to be made public with respect to the hospital (or critical 
        access hospital) prior to such data being made public.
        ``(5) Certified ehr technology defined.--The term `certified 
    EHR technology' has the meaning given such term in section 
    1848(o)(4).
        ``(6) Definitions.--For purposes of this subsection:
            ``(A) EHR reporting period.--The term `EHR reporting 
        period' means, with respect to a payment year, any period (or 
        periods) as specified by the Secretary.
            ``(B) Eligible hospital.--The term `eligible hospital' 
        means a subsection (d) hospital.''.
        (2) Critical access hospitals.--Section 1814(l) of the Social 
    Security Act (42 U.S.C. 1395f(l)) is amended--
            (A) in paragraph (1), by striking ``paragraph (2)'' and 
        inserting ``the subsequent paragraphs of this subsection''; and
            (B) by adding at the end the following new paragraph:
    ``(3)(A) The following rules shall apply in determining payment and 
reasonable costs under paragraph (1) for costs described in 
subparagraph (C) for a critical access hospital that would be a 
meaningful EHR user (as would be determined under paragraph (3) of 
section 1886(n)) for an EHR reporting period for a cost reporting 
period beginning during a payment year if such critical access hospital 
was treated as an eligible hospital under such section:
        ``(i) The Secretary shall compute reasonable costs by expensing 
    such costs in a single payment year and not depreciating such costs 
    over a period of years (and shall include as costs with respect to 
    cost reporting periods beginning during a payment year costs from 
    previous cost reporting periods to the extent they have not been 
    fully depreciated as of the period involved).
        ``(ii) There shall be substituted for the Medicare share that 
    would otherwise be applied under paragraph (1) a percent (not to 
    exceed 100 percent) equal to the sum of--
            ``(I) the Medicare share (as would be specified under 
        paragraph (2)(D) of section 1886(n)) for such critical access 
        hospital if such critical access hospital was treated as an 
        eligible hospital under such section; and
            ``(II) 20 percentage points.
    ``(B) The payment under this paragraph with respect to a critical 
access hospital shall be paid through a prompt interim payment (subject 
to reconciliation) after submission and review of such information (as 
specified by the Secretary) necessary to make such payment, including 
information necessary to apply this paragraph. In no case may payment 
under this paragraph be made with respect to a cost reporting period 
beginning during a payment year after 2015 and in no case may a 
critical access hospital receive payment under this paragraph with 
respect to more than 4 consecutive payment years.
    ``(C) The costs described in this subparagraph are costs for the 
purchase of certified EHR technology to which purchase depreciation 
(excluding interest) would apply if payment was made under paragraph 
(1) and not under this paragraph.
    ``(D) For purposes of this paragraph, paragraph (4), and paragraph 
(5), the terms `certified EHR technology', `eligible hospital', `EHR 
reporting period', and `payment year' have the meanings given such 
terms in sections 1886(n).''.
    (b) Incentive Market Basket Adjustment.--
        (1) In general.--Section 1886(b)(3)(B) of the Social Security 
    Act (42 U.S.C. 1395ww(b)(3)(B)) is amended--
            (A) in clause (viii)(I), by inserting ``(or, beginning with 
        fiscal year 2015, by one-quarter)'' after ``2.0 percentage 
        points''; and
            (B) by adding at the end the following new clause:
    ``(ix)(I) For purposes of clause (i) for fiscal year 2015 and each 
subsequent fiscal year, in the case of an eligible hospital (as defined 
in subsection (n)(6)(A)) that is not a meaningful EHR user (as defined 
in subsection (n)(3)) for an EHR reporting period for such fiscal year, 
three-quarters of the applicable percentage increase otherwise 
applicable under clause (i) for such fiscal year shall be reduced by 
33\1/3\ percent for fiscal year 2015, 66\2/3\ percent for fiscal year 
2016, and 100 percent for fiscal year 2017 and each subsequent fiscal 
year. 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 2015 and each subsequent fiscal year, a 
State in which hospitals are paid for services under section 1814(b)(3) 
shall adjust the payments to each subsection (d) hospital in the State 
that is not a meaningful EHR user (as defined in subsection (n)(3)) in 
a manner that is designed to result in an aggregate reduction in 
payments to hospitals in the State that is equivalent to the aggregate 
reduction that would have occurred if payments had been reduced to each 
subsection (d) hospital in the State in a manner comparable to the 
reduction under the previous provisions of this clause. The State shall 
report to the Secretary the methodology it will use to make the payment 
adjustment under the previous sentence.
    ``(IV) For purposes of this clause, the term `EHR reporting period' 
means, with respect to a fiscal year, any period (or periods) as 
specified by the Secretary.''.
        (2) Critical access hospitals.--Section 1814(l) of the Social 
    Security Act (42 U.S.C. 1395f(l)), as amended by subsection (a)(2), 
    is further amended by adding at the end the following new 
    paragraphs:
    ``(4)(A) Subject to subparagraph (C), for cost reporting periods 
beginning in fiscal year 2015 or a subsequent fiscal year, in the case 
of a critical access hospital that is not a meaningful EHR user (as 
would be determined under paragraph (3) of section 1886(n) if such 
critical access hospital was treated as an eligible hospital under such 
section) for an EHR reporting period with respect to such fiscal year, 
paragraph (1) shall be applied by substituting the applicable percent 
under subparagraph (B) for the percent described in such paragraph (1).
    ``(B) The percent described in this subparagraph is--
        ``(i) for fiscal year 2015, 100.66 percent;
        ``(ii) for fiscal year 2016, 100.33 percent; and
        ``(iii) for fiscal year 2017 and each subsequent fiscal year, 
    100 percent.
    ``(C) The provisions of subclause (II) of section 1886(b)(3)(B)(ix) 
shall apply with respect to subparagraph (A) for a critical access 
hospital with respect to a cost reporting period beginning in a fiscal 
year in the same manner as such subclause applies with respect to 
subclause (I) of such section for a subsection (d) hospital with 
respect to such fiscal year.
    ``(5) There shall be no administrative or judicial review under 
section 1869, section 1878, or otherwise, of--
        ``(A) the methodology and standards for determining the amount 
    of payment and reasonable cost under paragraph (3) and payment 
    adjustments under paragraph (4), including selection of periods 
    under section 1886(n)(2) for determining, and making estimates or 
    using proxies of, inpatient-bed-days, hospital charges, charity 
    charges, and Medicare share under subparagraph (D) of section 
    1886(n)(2);
        ``(B) the methodology and standards for determining a 
    meaningful EHR user under section 1886(n)(3) as would apply if the 
    hospital was treated as an eligible hospital under section 1886(n), 
    and the hardship exception under paragraph (4)(C);
        ``(C) the specification of EHR reporting periods under section 
    1886(n)(6)(B) as applied under paragraphs (3) and (4); and
        ``(D) the identification of costs for purposes of paragraph 
    (3)(C).''.
    (c) Application to Certain MA-Affiliated Eligible Hospitals.--
Section 1853 of the Social Security Act (42 U.S.C. 1395w-23), as 
amended by section 4101(c), is further amended by adding at the end the 
following new subsection:
    ``(m) Application of Eligible Hospital Incentives for Certain MA 
Organizations for Adoption and Meaningful Use of Certified EHR 
Technology.--
        ``(1) Application.--Subject to paragraphs (3) and (4), in the 
    case of a qualifying MA organization, the provisions of sections 
    1886(n) and 1886(b)(3)(B)(ix) shall apply with respect to eligible 
    hospitals described in paragraph (2) of the organization which the 
    organization attests under subsection (l)(6) to be meaningful EHR 
    users in a similar manner as they apply to eligible hospitals under 
    such sections. Incentive payments under paragraph (3) shall be made 
    to and payment adjustments under paragraph (4) shall apply to such 
    qualifying organizations.
        ``(2) Eligible hospital described.--With respect to a 
    qualifying MA organization, an eligible hospital described in this 
    paragraph is an eligible hospital (as defined in section 
    1886(n)(6)(A)) that is under common corporate governance with such 
    organization and serves individuals enrolled under an MA plan 
    offered by such organization.
        ``(3) Eligible hospital incentive payments.--
            ``(A) In general.--In applying section 1886(n)(2) under 
        paragraph (1), instead of the additional payment amount under 
        section 1886(n)(2), there shall be substituted an amount 
        determined by the Secretary to be similar to the estimated 
        amount in the aggregate that would be payable if payment for 
        services furnished by such hospitals was payable under part A 
        instead of this part. In implementing the previous sentence, 
        the Secretary--
                ``(i) shall, insofar as data to determine the discharge 
            related amount under section 1886(n)(2)(C) for an eligible 
            hospital are not available to the Secretary, use such 
            alternative data and methodology to estimate such discharge 
            related amount as the Secretary determines appropriate; and
                ``(ii) shall, insofar as data to determine the medicare 
            share described in section 1886(n)(2)(D) for an eligible 
            hospital are not available to the Secretary, use such 
            alternative data and methodology to estimate such share, 
            which data and methodology may include use of the 
            inpatient-bed-days (or discharges) with respect to an 
            eligible hospital during the appropriate period which are 
            attributable to both individuals for whom payment may be 
            made under part A or individuals enrolled in an MA plan 
            under a Medicare Advantage organization under this part as 
            a proportion of the estimated total number of patient-bed-
            days (or discharges) with respect to such hospital during 
            such period.
            ``(B) Avoiding duplication of payments.--
                ``(i) In general.--In the case of a hospital that for a 
            payment year is an eligible hospital described in paragraph 
            (2) and for which at least one-third of their discharges 
            (or bed-days) of Medicare patients for the year are covered 
            under part A, payment for the payment year shall be made 
            only under section 1886(n) and not under this subsection.
                ``(ii) Methods.--In the case of a hospital that is an 
            eligible hospital described in paragraph (2) and also is 
            eligible for an incentive payment under section 1886(n) but 
            is not described in clause (i) for the same payment period, 
            the Secretary shall develop a process--

                    ``(I) to ensure that duplicate payments are not 
                made with respect to an eligible hospital both under 
                this subsection and under section 1886(n); and
                    ``(II) to collect data from Medicare Advantage 
                organizations to ensure against such duplicate 
                payments.

        ``(4) Payment adjustment.--
            ``(A) Subject to paragraph (3), in the case of a qualifying 
        MA organization (as defined in section 1853(l)(5)), if, 
        according to the attestation of the organization submitted 
        under subsection (l)(6) for an applicable period, one or more 
        eligible hospitals (as defined in section 1886(n)(6)(A)) that 
        are under common corporate governance with such organization 
        and that serve individuals enrolled under a plan offered by 
        such organization are not meaningful EHR users (as defined in 
        section 1886(n)(3)) with respect to a period, the payment 
        amount payable under this section for such organization for 
        such period shall be the percent specified in subparagraph (B) 
        for such period of the payment amount otherwise provided under 
        this section for such period.
            ``(B) Specified percent.--The percent specified under this 
        subparagraph for a year is 100 percent minus a number of 
        percentage points equal to the product of--
                ``(i) the number of the percentage point reduction 
            effected under section 1886(b)(3)(B)(ix)(I) for the period; 
            and
                ``(ii) the Medicare hospital expenditure proportion 
            specified in subparagraph (C) for the year.
            ``(C) Medicare hospital expenditure proportion.--The 
        Medicare hospital expenditure proportion under this 
        subparagraph for a year is the Secretary's estimate of the 
        proportion, of the expenditures under parts A and B that are 
        not attributable to this part, that are attributable to 
        expenditures for inpatient hospital services.
            ``(D) Application of payment adjustment.--In the case that 
        a qualifying MA organization attests that not all eligible 
        hospitals are meaningful EHR users with respect to an 
        applicable period, the Secretary shall apply the payment 
        adjustment under this paragraph based on a methodology 
        specified by the Secretary, taking into account the proportion 
        of such eligible hospitals, or discharges from such hospitals, 
        that are not meaningful EHR users for such period.
        ``(5) Posting on website.--The Secretary shall post on the 
    Internet website of the Centers for Medicare & Medicaid Services, 
    in an easily understandable format--
            ``(A) a list of the names, business addresses, and business 
        phone numbers of each qualifying MA organization receiving an 
        incentive payment under this subsection for eligible hospitals 
        described in paragraph (2); and
            ``(B) a list of the names of the eligible hospitals for 
        which such incentive payment is based.
        ``(6) Limitations on review.--There shall be no administrative 
    or judicial review under section 1869, section 1878, or otherwise, 
    of--
            ``(A) the methodology and standards for determining payment 
        amounts and payment adjustments under this subsection, 
        including avoiding duplication of payments under paragraph 
        (3)(B);
            ``(B) the methodology and standards for determining 
        eligible hospitals under paragraph (2); and
            ``(C) the methodology and standards for determining a 
        meaningful EHR user under section 1886(n)(3), including 
        specification of the means of demonstrating meaningful EHR use 
        under subparagraph (C) of such section and selection of 
        measures under subparagraph (B) of such section.''.
    (d) Conforming Amendments.--
        (1) Section 1814(b) of the Social Security Act (42 U.S.C. 
    1395f(b)) is amended--
            (A) in paragraph (3), in the matter preceding subparagraph 
        (A), by inserting ``, subject to section 
        1886(d)(3)(B)(ix)(III),'' after ``then''; and
            (B) by adding at the end the following: ``For purposes of 
        applying paragraph (3), there shall be taken into account 
        incentive payments, and payment adjustments under subsection 
        (b)(3)(B)(ix) or (n) of section 1886.''.
        (2) Section 1851(i)(1) of the Social Security Act (42 U.S.C. 
    1395w-21(i)(1)) is amended by striking ``and 1886(h)(3)(D)'' and 
    inserting ``1886(h)(3)(D), and 1853(m)''.
        (3) Section 1853 of the Social Security Act (42 U.S.C. 1395w-
    23), as amended by section 4101(d), is amended--
            (A) in subsection (c)--
                (i) in paragraph (1)(D)(i), by striking ``1848(o)'' and 
            inserting ``, 1848(o), and 1886(n)''; and
                (ii) in paragraph (6)(A), by inserting ``and 
            subsections (b)(3)(B)(ix) and (n) of section 1886'' after 
            ``section 1848''; and
            (B) in subsection (f), by inserting ``and subsection (m)'' 
        after ``under subsection (l)''.

SEC. 4103. TREATMENT OF PAYMENTS AND SAVINGS; IMPLEMENTATION FUNDING.

    (a) Premium Hold Harmless.--
        (1) In general.--Section 1839(a)(1) of the Social Security Act 
    (42 U.S.C. 1395r(a)(1)) is amended by adding at the end the 
    following: ``In applying this paragraph there shall not be taken 
    into account additional payments under section 1848(o) and section 
    1853(l)(3) and the Government contribution under section 
    1844(a)(3).''.
        (2) Payment.--Section 1844(a) of such Act (42 U.S.C. 1395w(a)) 
    is amended--
            (A) in paragraph (2), by striking the period at the end and 
        inserting ``; plus''; and
            (B) by adding at the end the following new paragraph:
        ``(3) a Government contribution equal to the amount of payment 
    incentives payable under sections 1848(o) and 1853(l)(3).''.
    (b) Medicare Improvement Fund.--Section 1898 of the Social Security 
Act (42 U.S.C. 1395iii), as added by section 7002(a) of the 
Supplemental Appropriations Act, 2008 (Public Law 110-252) and as 
amended by section 188(a)(2) of the Medicare Improvements for Patients 
and Providers Act of 2008 (Public Law 110-275; 122 Stat. 2589) and by 
section 6 of the QI Program Supplemental Funding Act of 2008, is 
amended--
        (1) in subsection (a)--
            (A) by inserting ``medicare'' before ``fee-for-service''; 
        and
            (B) by inserting before the period at the end the 
        following: ``including, but not limited to, an increase in the 
        conversion factor under section 1848(d) to address, in whole or 
        in part, any projected shortfall in the conversion factor for 
        2014 relative to the conversion factor for 2008 and adjustments 
        to payments for items and services furnished by providers of 
        services and suppliers under such original medicare fee-for-
        service program''; and
        (2) in subsection (b)--
            (A) in paragraph (1), by striking ``during fiscal year 
        2014,'' and all that follows and inserting the following: 
        ``during--
            ``(A) fiscal year 2014, $22,290,000,000; and
            ``(B) fiscal year 2020 and each subsequent fiscal year, the 
        Secretary's estimate, as of July 1 of the fiscal year, of the 
        aggregate reduction in expenditures under this title during the 
        preceding fiscal year directly resulting from the reduction in 
        payment amounts under sections 1848(a)(7), 1853(l)(4), 
        1853(m)(4), and 1886(b)(3)(B)(ix).''; and
            (B) by adding at the end the following new paragraph:
        ``(4) No effect on payments in subsequent years.--In the case 
    that expenditures from the Fund are applied to, or otherwise 
    affect, a payment rate for an item or service under this title for 
    a year, the payment rate for such item or service shall be computed 
    for a subsequent year as if such application or effect had never 
    occurred.''.
    (c) Implementation Funding.--In addition to funds otherwise 
available, out of any funds in the Treasury not otherwise appropriated, 
there are appropriated to the Secretary of Health and Human Services 
for the Center for Medicare & Medicaid Services Program Management 
Account, $100,000,000 for each of fiscal years 2009 through 2015 and 
$45,000,000 for fiscal year 2016, which shall be available for purposes 
of carrying out the provisions of (and amendments made by) this 
subtitle. Amounts appropriated under this subsection for a fiscal year 
shall be available until expended.

SEC. 4104. STUDIES AND REPORTS ON HEALTH INFORMATION TECHNOLOGY.

    (a) Study and Report on Application of EHR Payment Incentives for 
Providers Not Receiving Other Incentive Payments.--
        (1) Study.--
            (A) In general.--The Secretary of Health and Human Services 
        shall conduct a study to determine the extent to which and 
        manner in which payment incentives (such as under title XVIII 
        or XIX of the Social Security Act) and other funding for 
        purposes of implementing and using certified EHR technology (as 
        defined in section 1848(o)(4) of the Social Security Act, as 
        added by section 4101(a)) should be made available to health 
        care providers who are receiving minimal or no payment 
        incentives or other funding under this Act, under title XIII of 
        division A, under title XVIII or XIX of such Act, or otherwise, 
        for such purposes.
            (B) Details of study.--Such study shall include an 
        examination of--
                (i) the adoption rates of certified EHR technology by 
            such health care providers;
                (ii) the clinical utility of such technology by such 
            health care providers;
                (iii) whether the services furnished by such health 
            care providers are appropriate for or would benefit from 
            the use of such technology;
                (iv) the extent to which such health care providers 
            work in settings that might otherwise receive an incentive 
            payment or other funding under this Act, under title XIII 
            of division A, under title XVIII or XIX of the Social 
            Security Act, or otherwise;
                (v) the potential costs and the potential benefits of 
            making payment incentives and other funding available to 
            such health care providers; and
                (vi) any other issues the Secretary deems to be 
            appropriate.
        (2) Report.--Not later than June 30, 2010, the Secretary shall 
    submit to Congress a report on the findings and conclusions of the 
    study conducted under paragraph (1).
    (b) Study and Report on Availability of Open Source Health 
Information Technology Systems.--
        (1) Study.--
            (A) In general.--The Secretary of Health and Human Services 
        shall, in consultation with the Under Secretary for Health of 
        the Veterans Health Administration, the Director of the Indian 
        Health Service, the Secretary of Defense, the Director of the 
        Agency for Healthcare Research and Quality, the Administrator 
        of the Health Resources and Services Administration, and the 
        Chairman of the Federal Communications Commission, conduct a 
        study on--
                (i) the current availability of open source health 
            information technology systems to Federal safety net 
            providers (including small, rural providers);
                (ii) the total cost of ownership of such systems in 
            comparison to the cost of proprietary commercial products 
            available;
                (iii) the ability of such systems to respond to the 
            needs of, and be applied to, various populations (including 
            children and disabled individuals); and
                (iv) the capacity of such systems to facilitate 
            interoperability.
            (B) Considerations.--In conducting the study under 
        subparagraph (A), the Secretary of Health and Human Services 
        shall take into account the circumstances of smaller health 
        care providers, health care providers located in rural or other 
        medically underserved areas, and safety net providers that 
        deliver a significant level of health care to uninsured 
        individuals, Medicaid beneficiaries, SCHIP beneficiaries, and 
        other vulnerable individuals.
        (2) Report.--Not later than October 1, 2010, the Secretary of 
    Health and Human Services shall submit to Congress a report on the 
    findings and the conclusions of the study conducted under paragraph 
    (1), together with recommendations for such legislation and 
    administrative action as the Secretary determines appropriate.

                    Subtitle B--Medicaid Incentives

SEC. 4201. MEDICAID PROVIDER HIT ADOPTION AND OPERATION PAYMENTS; 
              IMPLEMENTATION FUNDING.

    (a) In General.--Section 1903 of the Social Security Act (42 U.S.C. 
1396b) is amended--
        (1) in subsection (a)(3)--
            (A) by striking ``and'' at the end of subparagraph (D);
            (B) by striking ``plus'' at the end of subparagraph (E) and 
        inserting ``and''; and
            (C) by adding at the end the following new subparagraph:
            ``(F)(i) 100 percent of so much of the sums expended during 
        such quarter as are attributable to payments to Medicaid 
        providers described in subsection (t)(1) to encourage the 
        adoption and use of certified EHR technology; and
            ``(ii) 90 percent of so much of the sums expended during 
        such quarter as are attributable to payments for reasonable 
        administrative expenses related to the administration of 
        payments described in clause (i) if the State meets the 
        condition described in subsection (t)(9); plus''; and
        (2) by inserting after subsection (s) the following new 
    subsection:
    ``(t)(1) For purposes of subsection (a)(3)(F), the payments 
described in this paragraph to encourage the adoption and use of 
certified EHR technology are payments made by the State in accordance 
with this subsection --
        ``(A) to Medicaid providers described in paragraph (2)(A) not 
    in excess of 85 percent of net average allowable costs (as defined 
    in paragraph (3)(E)) for certified EHR technology (and support 
    services including maintenance and training that is for, or is 
    necessary for the adoption and operation of, such technology) with 
    respect to such providers; and
        ``(B) to Medicaid providers described in paragraph (2)(B) not 
    in excess of the maximum amount permitted under paragraph (5) for 
    the provider involved.
    ``(2) In this subsection and subsection (a)(3)(F), the term 
`Medicaid provider' means--
        ``(A) an eligible professional (as defined in paragraph 
    (3)(B))--
            ``(i) who is not hospital-based and has at least 30 percent 
        of the professional's patient volume (as estimated in 
        accordance with a methodology established by the Secretary) 
        attributable to individuals who are receiving medical 
        assistance under this title;
            ``(ii) who is not described in clause (i), who is a 
        pediatrician, who is not hospital-based, and who has at least 
        20 percent of the professional's patient volume (as estimated 
        in accordance with a methodology established by the Secretary) 
        attributable to individuals who are receiving medical 
        assistance under this title; and
            ``(iii) who practices predominantly in a Federally 
        qualified health center or rural health clinic and has at least 
        30 percent of the professional's patient volume (as estimated 
        in accordance with a methodology established by the Secretary) 
        attributable to needy individuals (as defined in paragraph 
        (3)(F)); and
        ``(B)(i) a children's hospital, or
        ``(ii) an acute-care hospital that is not described in clause 
    (i) and that has at least 10 percent of the hospital's patient 
    volume (as estimated in accordance with a methodology established 
    by the Secretary) attributable to individuals who are receiving 
    medical assistance under this title.
An eligible professional shall not qualify as a Medicaid provider under 
this subsection unless any right to payment under sections 1848(o) and 
1853(l) with respect to the eligible professional has been waived in a 
manner specified by the Secretary. For purposes of calculating patient 
volume under subparagraph (A)(iii), insofar as it is related to 
uncompensated care, the Secretary may require the adjustment of such 
uncompensated care data so that it would be an appropriate proxy for 
charity care, including a downward adjustment to eliminate bad debt 
data from uncompensated care. In applying subparagraphs (A) and 
(B)(ii), the methodology established by the Secretary for patient 
volume shall include individuals enrolled in a Medicaid managed care 
plan (under section 1903(m) or section 1932).
    ``(3) In this subsection and subsection (a)(3)(F):
        ``(A) The term `certified EHR technology' means a qualified 
    electronic health record (as defined in 3000(13) of the Public 
    Health Service Act) that is certified pursuant to section 
    3001(c)(5) of such Act as meeting standards adopted under section 
    3004 of such Act that are applicable to the type of record involved 
    (as determined by the Secretary, such as an ambulatory electronic 
    health record for office-based physicians or an inpatient hospital 
    electronic health record for hospitals).
        ``(B) The term `eligible professional' means a--
            ``(i) physician;
            ``(ii) dentist;
            ``(iii) certified nurse mid-wife;
            ``(iv) nurse practitioner; and
            ``(v) physician assistant insofar as the assistant is 
        practicing in a rural health clinic that is led by a physician 
        assistant or is practicing in a Federally qualified health 
        center that is so led.
        ``(C) The term `average allowable costs' means, with respect to 
    certified EHR technology of Medicaid providers described in 
    paragraph (2)(A) for--
            ``(i) the first year of payment with respect to such a 
        provider, the average costs for the purchase and initial 
        implementation or upgrade of such technology (and support 
        services including training that is for, or is necessary for 
        the adoption and initial operation of, such technology) for 
        such providers, as determined by the Secretary based upon 
        studies conducted under paragraph (4)(C); and
            ``(ii) a subsequent year of payment with respect to such a 
        provider, the average costs not described in clause (i) 
        relating to the operation, maintenance, and use of such 
        technology for such providers, as determined by the Secretary 
        based upon studies conducted under paragraph (4)(C).
        ``(D) The term `hospital-based' means, with respect to an 
    eligible professional, a professional (such as a pathologist, 
    anesthesiologist, or emergency physician) who furnishes 
    substantially all of the individual's professional services in a 
    hospital setting (whether inpatient or outpatient) and through the 
    use of the facilities and equipment, including qualified electronic 
    health records, of the hospital. The determination of whether an 
    eligible professional is a hospital-based eligible professional 
    shall be made on the basis of the site of service (as defined by 
    the Secretary) and without regard to any employment or billing 
    arrangement between the eligible professional and any other 
    provider.
        ``(E) The term `net average allowable costs' means, with 
    respect to a Medicaid provider described in paragraph (2)(A), 
    average allowable costs reduced by any payment that is made to such 
    Medicaid provider from any other source (other than under this 
    subsection or by a State or local government) that is directly 
    attributable to payment for certified EHR technology or support 
    services described in subparagraph (C).
        ``(F) The term `needy individual' means, with respect to a 
    Medicaid provider, an individual--
            ``(i) who is receiving assistance under this title;
            ``(ii) who is receiving assistance under title XXI;
            ``(iii) who is furnished uncompensated care by the 
        provider; or
            ``(iv) for whom charges are reduced by the provider on a 
        sliding scale basis based on an individual's ability to pay.
    ``(4)(A) With respect to a Medicaid provider described in paragraph 
(2)(A), subject to subparagraph (B), in no case shall--
            ``(i) the net average allowable costs under this subsection 
        for the first year of payment (which may not be later than 
        2016), which is intended to cover the costs described in 
        paragraph (3)(C)(i), exceed $25,000 (or such lesser amount as 
        the Secretary determines based on studies conducted under 
        subparagraph (C));
            ``(ii) the net average allowable costs under this 
        subsection for a subsequent year of payment, which is intended 
        to cover costs described in paragraph (3)(C)(ii), exceed 
        $10,000; and
            ``(iii) payments be made for costs described in clause (ii) 
        after 2021 or over a period of longer than 5 years.
    ``(B) In the case of Medicaid provider described in paragraph 
(2)(A)(ii), the dollar amounts specified in subparagraph (A) shall be 
\2/3\ of the dollar amounts otherwise specified.
    ``(C) For the purposes of determining average allowable costs under 
this subsection, the Secretary shall study the average costs to 
Medicaid providers described in paragraph (2)(A) of purchase and 
initial implementation and upgrade of certified EHR technology 
described in paragraph (3)(C)(i) and the average costs to such 
providers of operations, maintenance, and use of such technology 
described in paragraph (3)(C)(ii). In determining such costs for such 
providers, the Secretary may utilize studies of such amounts submitted 
by States.
    ``(5)(A) In no case shall the payments described in paragraph 
(1)(B) with respect to a Medicaid provider described in paragraph 
(2)(B) exceed--
        ``(i) in the aggregate the product of--
                ``(I) the overall hospital EHR amount for the provider 
            computed under subparagraph (B); and
                ``(II) the Medicaid share for such provider computed 
            under subparagraph (C);
        ``(ii) in any year 50 percent of the product described in 
    clause (i); and
        ``(iii) in any 2-year period 90 percent of such product.
    ``(B) For purposes of this paragraph, the overall hospital EHR 
amount, with respect to a Medicaid provider, is the sum of the 
applicable amounts specified in section 1886(n)(2)(A) for such provider 
for the first 4 payment years (as estimated by the Secretary) 
determined as if the Medicare share specified in clause (ii) of such 
section were 1. The Secretary shall establish, in consultation with the 
State, the overall hospital EHR amount for each such Medicaid provider 
eligible for payments under paragraph (1)(B). For purposes of this 
subparagraph in computing the amounts under section 1886(n)(2)(C) for 
payment years after the first payment year, the Secretary shall assume 
that in subsequent payment years discharges increase at the average 
annual rate of growth of the most recent 3 years for which discharge 
data are available per year.
    ``(C) The Medicaid share computed under this subparagraph, for a 
Medicaid provider for a period specified by the Secretary, shall be 
calculated in the same manner as the Medicare share under section 
1886(n)(2)(D) for such a hospital and period, except that there shall 
be substituted for the numerator under clause (i) of such section the 
amount that is equal to the number of inpatient-bed-days (as 
established by the Secretary) which are attributable to individuals who 
are receiving medical assistance under this title and who are not 
described in section 1886(n)(2)(D)(i). In computing inpatient-bed-days 
under the previous sentence, the Secretary shall take into account 
inpatient-bed-days attributable to inpatient-bed-days that are paid for 
individuals enrolled in a Medicaid managed care plan (under section 
1903(m) or section 1932).
    ``(D) In no case may the payments described in paragraph (1)(B) 
with respect to a Medicaid provider described in paragraph (2)(B) be 
paid--
        ``(i) for any year beginning after 2016 unless the provider has 
    been provided payment under paragraph (1)(B) for the previous year; 
    and
        ``(ii) over a period of more than 6 years of payment.
    ``(6) Payments described in paragraph (1) are not in accordance 
with this subsection unless the following requirements are met:
        ``(A)(i) The State provides assurances satisfactory to the 
    Secretary that amounts received under subsection (a)(3)(F) with 
    respect to payments to a Medicaid provider are paid, subject to 
    clause (ii), directly to such provider (or to an employer or 
    facility to which such provider has assigned payments) without any 
    deduction or rebate.
        ``(ii) Amounts described in clause (i) may also be paid to an 
    entity promoting the adoption of certified EHR technology, as 
    designated by the State, if participation in such a payment 
    arrangement is voluntary for the eligible professional involved and 
    if such entity does not retain more than 5 percent of such payments 
    for costs not related to certified EHR technology (and support 
    services including maintenance and training) that is for, or is 
    necessary for the operation of, such technology.
        ``(B) A Medicaid provider described in paragraph (2)(A) is 
    responsible for payment of the remaining 15 percent of the net 
    average allowable cost.
        ``(C)(i) Subject to clause (ii), with respect to payments to a 
    Medicaid provider--
            ``(I) for the first year of payment to the Medicaid 
        provider under this subsection, the Medicaid provider 
        demonstrates that it is engaged in efforts to adopt, implement, 
        or upgrade certified EHR technology; and
            ``(II) for a year of payment, other than the first year of 
        payment to the Medicaid provider under this subsection, the 
        Medicaid provider demonstrates meaningful use of certified EHR 
        technology through a means that is approved by the State and 
        acceptable to the Secretary, and that may be based upon the 
        methodologies applied under section 1848(o) or 1886(n).
        ``(ii) In the case of a Medicaid provider who has completed 
    adopting, implementing, or upgrading such technology prior to the 
    first year of payment to the Medicaid provider under this 
    subsection, clause (i)(I) shall not apply and clause (i)(II) shall 
    apply to each year of payment to the Medicaid provider under this 
    subsection, including the first year of payment.
        ``(D) To the extent specified by the Secretary, the certified 
    EHR technology is compatible with State or Federal administrative 
    management systems.
For purposes of subparagraph (B), a Medicaid provider described in 
paragraph (2)(A) may accept payments for the costs described in such 
subparagraph from a State or local government. For purposes of 
subparagraph (C), in establishing the means described in such 
subparagraph, which may include clinical quality reporting to the 
State, the State shall ensure that populations with unique needs, such 
as children, are appropriately addressed.
    ``(7) With respect to Medicaid providers described in paragraph 
(2)(A), the Secretary shall ensure coordination of payment with respect 
to such providers under sections 1848(o) and 1853(l) and under this 
subsection to assure no duplication of funding. Such coordination shall 
include, to the extent practicable, a data matching process between 
State Medicaid agencies and the Centers for Medicare & Medicaid 
Services using national provider identifiers. For such purposes, the 
Secretary may require the submission of such data relating to payments 
to such Medicaid providers as the Secretary may specify.
    ``(8) In carrying out paragraph (6)(C), the State and Secretary 
shall seek, to the maximum extent practicable, to avoid duplicative 
requirements from Federal and State governments to demonstrate 
meaningful use of certified EHR technology under this title and title 
XVIII. In doing so, the Secretary may deem satisfaction of requirements 
for such meaningful use for a payment year under title XVIII to be 
sufficient to qualify as meaningful use under this subsection. The 
Secretary may also specify the reporting periods under this subsection 
in order to carry out this paragraph.
    ``(9) In order to be provided Federal financial participation under 
subsection (a)(3)(F)(ii), a State must demonstrate to the satisfaction 
of the Secretary, that the State--
        ``(A) is using the funds provided for the purposes of 
    administering payments under this subsection, including tracking of 
    meaningful use by Medicaid providers;
        ``(B) is conducting adequate oversight of the program under 
    this subsection, including routine tracking of meaningful use 
    attestations and reporting mechanisms; and
        ``(C) is pursuing initiatives to encourage the adoption of 
    certified EHR technology to promote health care quality and the 
    exchange of health care information under this title, subject to 
    applicable laws and regulations governing such exchange.
    ``(10) The Secretary shall periodically submit reports to the 
Committee on Energy and Commerce of the House of Representatives and 
the Committee on Finance of the Senate on status, progress, and 
oversight of payments described in paragraph (1), including steps taken 
to carry out paragraph (7). Such reports shall also describe the extent 
of adoption of certified EHR technology among Medicaid providers 
resulting from the provisions of this subsection and any improvements 
in health outcomes, clinical quality, or efficiency resulting from such 
adoption.''.
    (b) Implementation Funding.--In addition to funds otherwise 
available, out of any funds in the Treasury not otherwise appropriated, 
there are appropriated to the Secretary of Health and Human Services 
for the Centers for Medicare & Medicaid Services Program Management 
Account, $40,000,000 for each of fiscal years 2009 through 2015 and 
$20,000,000 for fiscal year 2016, which shall be available for purposes 
of carrying out the provisions of (and the amendments made by) this 
section. Amounts appropriated under this subsection for a fiscal year 
shall be available until expended.

             Subtitle C--Miscellaneous Medicare Provisions

SEC. 4301. MORATORIA ON CERTAIN MEDICARE REGULATIONS.

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

SEC. 4302. LONG-TERM CARE HOSPITAL TECHNICAL CORRECTIONS.

    (a) Payment.--Subsection (c) of section 114 of the Medicare, 
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-173) is 
amended--
        (1) in paragraph (1)--
            (A) by amending the heading to read as follows: ``Delay in 
        application of 25 percent patient threshold payment 
        adjustment'';
            (B) by striking ``the date of the enactment of this Act'' 
        and inserting ``July 1, 2007,''; and
            (C) in subparagraph (A), by inserting ``or to a 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--STATE FISCAL RELIEF

SEC. 5000. PURPOSES; TABLE OF CONTENTS.

    (a) Purposes.--The purposes of this title are as follows:
        (1) To provide fiscal relief to States in a period of economic 
    downturn.
        (2) To protect and maintain State Medicaid programs during a 
    period of economic downturn, including by helping to avert cuts to 
    provider payment rates and benefits or services, and to prevent 
    constrictions of income eligibility requirements for such programs, 
    but not to promote increases in such requirements.
    (b) Table of Contents.--The table of contents for this title is as 
follows:

                      TITLE V--STATE FISCAL RELIEF

Sec. 5000. Purposes; table of contents.
Sec. 5001. Temporary increase of Medicaid FMAP.
Sec. 5002. Temporary increase in DSH allotments during recession.
Sec. 5003. Extension of moratoria on certain Medicaid final regulations.
Sec. 5004. Extension of transitional medical assistance (TMA).
Sec. 5005. Extension of the qualifying individual (QI) program.
Sec. 5006. Protections for Indians under Medicaid and CHIP.
Sec. 5007. Funding for oversight and implementation.
Sec. 5008. GAO study and report regarding State needs during periods of 
          national economic downturn.

SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP.

    (a) Permitting Maintenance of Fmap.--Subject to subsections (e), 
(f), and (g), if the FMAP determined without regard to this section for 
a State for--
        (1) fiscal year 2009 is less than the FMAP as so determined for 
    fiscal year 2008, the FMAP for the State for fiscal year 2008 shall 
    be substituted for the State's FMAP for fiscal year 2009, before 
    the application of this section;
        (2) fiscal year 2010 is less than the FMAP as so determined for 
    fiscal year 2008 or fiscal year 2009 (after the application of 
    paragraph (1)), the greater of such FMAP for the State for fiscal 
    year 2008 or fiscal year 2009 shall be substituted for the State's 
    FMAP for fiscal year 2010, before the application of this section; 
    and
        (3) fiscal year 2011 is less than the FMAP as so determined for 
    fiscal year 2008, fiscal year 2009 (after the application of 
    paragraph (1)), or fiscal year 2010 (after the application of 
    paragraph (2)), the greatest of such FMAP for the State for fiscal 
    year 2008, fiscal year 2009, or fiscal year 2010 shall be 
    substituted for the State's FMAP for fiscal year 2011, before the 
    application of this section, but only for the first calendar 
    quarter in fiscal year 2011.
    (b) General 6.2 Percentage Point Increase.--
        (1) In general.--Subject to subsections (e), (f), and (g) and 
    paragraph (2), for each State for calendar quarters during the 
    recession adjustment period (as defined in subsection (h)(3)), the 
    FMAP (after the application of subsection (a)) shall be increased 
    (without regard to any limitation otherwise specified in section 
    1905(b) of the Social Security Act (42 U.S.C. 1396d(b))) by 6.2 
    percentage points.
        (2) Special election for territories.--In the case of a State 
    that is not one of the 50 States or the District of Columbia, 
    paragraph (1) shall only apply if the State makes a one-time 
    election, in a form and manner specified by the Secretary and for 
    the entire recession adjustment period, to apply the increase in 
    FMAP under paragraph (1) and a 15 percent increase under subsection 
    (d) instead of applying a 30 percent increase under subsection (d).
    (c) Additional Relief Based on Increase in Unemployment.--
        (1) In general.--Subject to subsections (e), (f), and (g), if a 
    State is a qualifying State under paragraph (2) for a calendar 
    quarter occurring during the recession adjustment period, the FMAP 
    for the State shall be further increased by the number of 
    percentage points equal to the product of--
            (A) the State percentage applicable for the State under 
        section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b)) 
        after the application of subsection (a) and after the 
        application of \1/2\ of the increase under subsection (b); and
            (B) the applicable percent determined in paragraph (3) for 
        the calendar quarter (or, if greater, for a previous such 
        calendar quarter).
        (2) Qualifying criteria.--
            (A) In general.--For purposes of paragraph (1), a State 
        qualifies for additional relief under this subsection for a 
        calendar quarter occurring during the recession adjustment 
        period if the State is 1 of the 50 States or the District of 
        Columbia and the State satisfies any of the following criteria 
        for the quarter:
                (i) The State unemployment increase percentage (as 
            defined in paragraph (4)) for the quarter is at least 1.5 
            percentage points but less than 2.5 percentage points.
                (ii) The State unemployment increase percentage for the 
            quarter is at least 2.5 percentage points but less than 3.5 
            percentage points.
                (iii) The State unemployment increase percentage for 
            the quarter is at least 3.5 percentage points.
            (B) Maintenance of status.--If a State qualifies for 
        additional relief under this subsection for a calendar quarter, 
        it shall be deemed to have qualified for such relief for each 
        subsequent calendar quarter ending before July 1, 2010.
        (3) Applicable percent.--
            (A) In general.--For purposes of paragraph (1), subject to 
        subparagraph (B), the applicable percent is--
                (i) 5.5 percent, if the State satisfies the criteria 
            described in paragraph (2)(A)(i) for the calendar quarter;
                (ii) 8.5 percent if the State satisfies the criteria 
            described in paragraph (2)(A)(ii) for the calendar quarter; 
            and
                (iii) 11.5 percent if the State satisfies the criteria 
            described in paragraph (2)(A)(iii) for the calendar 
            quarter.
            (B) Maintenance of higher applicable percent.--
                (i) Hold harmless period.--If the percent applied to a 
            State under subparagraph (A) for any calendar quarter in 
            the recession adjustment period beginning on or after 
            January 1, 2009, and ending before July 1, 2010, 
            (determined without regard to this subparagraph) is less 
            than the percent applied for the preceding quarter (as so 
            determined), the higher applicable percent shall continue 
            in effect for each subsequent calendar quarter ending 
            before July 1, 2010.
                (ii) Notice of lower applicable percent.--The Secretary 
            shall notify a State at least 60 days prior to applying any 
            lower applicable percent to the State under this paragraph.
        (4) Computation of state unemployment increase percentage.--
            (A) In general.--In this subsection, the ``State 
        unemployment increase percentage'' for a State for a calendar 
        quarter is equal to the number of percentage points (if any) by 
        which--
                (i) the average monthly unemployment rate for the State 
            for months in the most recent previous 3-consecutive-month 
            period for which data are available, subject to 
            subparagraph (C); exceeds
                (ii) the lowest average monthly unemployment rate for 
            the State for any 3-consecutive-month period preceding the 
            period described in clause (i) and beginning on or after 
            January 1, 2006.
            (B) Average monthly unemployment rate defined.--In this 
        paragraph, the term ``average monthly unemployment rate'' means 
        the average of the monthly number unemployed, divided by the 
        average of the monthly civilian labor force, seasonally 
        adjusted, as determined based on the most recent monthly 
        publications of the Bureau of Labor Statistics of the 
        Department of Labor.
            (C) Special rule.--With respect to--
                (i) the first 2 calendar quarters of the recession 
            adjustment period, the most recent previous 3-consecutive-
            month period described in subparagraph (A)(i) shall be the 
            3-consecutive-month period beginning with October 2008; and
                (ii) the last 2 calendar quarters of the recession 
            adjustment period, the most recent previous 3-consecutive-
            month period described in such subparagraph shall be the 3-
            consecutive-month period beginning with December 2009, or, 
            if it results in a higher applicable percent under 
            paragraph (3), the 3-consecutive-month period beginning 
            with January 2010.
    (d) Increase in Cap on Medicaid Payments to Territories.--Subject 
to subsections (f) and (g), with respect to entire fiscal years 
occurring during the recession adjustment period and with respect to 
fiscal years only a portion of which occurs during such period (and in 
proportion to the portion of the fiscal year that occurs during such 
period), the amounts otherwise determined for Puerto Rico, the Virgin 
Islands, Guam, the Northern Mariana Islands, and American Samoa under 
subsections (f) and (g) of section 1108 of the Social Security Act (42 
6 U.S.C. 1308) shall each be increased by 30 percent (or, in the case 
of an election under subsection (b)(2), 15 percent). In the case of 
such an election by a territory, subsection (a)(1) of such section 
shall be applied without regard to any increase in payment made to the 
territory under part E of title IV of such Act that is attributable to 
the increase in FMAP effected under subsection (b) for the territory.
    (e) Scope of Application.--The increases in the FMAP for a State 
under this section shall apply for purposes of title XIX of the Social 
Security Act and shall not apply with respect to--
        (1) disproportionate share hospital payments described in 
    section 1923 of such Act (42 U.S.C. 1396r-4);
        (2) payments under title IV of such Act (42 U.S.C. 601 et seq.) 
    (except that the increases under subsections (a) and (b) shall 
    apply to payments under part E of title IV of such Act (42 U.S.C. 
    670 et seq.) and, for purposes of the application of this section 
    to the District of Columbia, payments under such part shall be 
    deemed to be made on the basis of the FMAP applied with respect to 
    such District for purposes of title XIX and as increased under 
    subsection (b));
        (3) payments under title XXI of such Act (42 U.S.C. 1397aa et 
    seq.);
        (4) any payments under title XIX of such Act that are based on 
    the enhanced FMAP described in section 2105(b) of such Act (42 
    U.S.C. 1397ee(b)); or
        (5) any payments under title XIX of such Act that are 
    attributable to expenditures for medical assistance provided to 
    individuals made eligible under a State plan under title XIX of the 
    Social Security Act (including under any waiver under such title or 
    under section 1115 of such Act (42 U.S.C. 1315)) because of income 
    standards (expressed as a percentage of the poverty line) for 
    eligibility for medical assistance that are higher than the income 
    standards (as so expressed) for such eligibility as in effect on 
    July 1, 2008, (including as such standards were proposed to be in 
    effect under a State law enacted but not effective as of such date 
    or a State plan amendment or waiver request under title XIX of such 
    Act that was pending approval on such date).
    (f) State Ineligibility; Limitation; Special Rules.--
        (1) Maintenance of eligibility requirements.--
            (A) In general.--Subject to subparagraphs (B) and (C), a 
        State is not eligible for an increase in its FMAP under 
        subsection (a), (b), or (c), or an increase in a cap amount 
        under subsection (d), if eligibility standards, methodologies, 
        or procedures under its State plan under title XIX of the 
        Social Security Act (including any waiver under such title or 
        under section 1115 of such Act (42 U.S.C. 1315)) are more 
        restrictive than the eligibility standards, methodologies, or 
        procedures, respectively, under such plan (or waiver) as in 
        effect on July 1, 2008.
            (B) State reinstatement of eligibility permitted.--Subject 
        to subparagraph (C), a State that has restricted eligibility 
        standards, methodologies, or procedures under its State plan 
        under title XIX of the Social Security Act (including any 
        waiver under such title or under section 1115 of such Act (42 
        U.S.C. 1315)) after July 1, 2008, is no longer ineligible under 
        subparagraph (A) beginning with the first calendar quarter in 
        which the State has reinstated eligibility standards, 
        methodologies, or procedures that are no more restrictive than 
        the eligibility standards, methodologies, or procedures, 
        respectively, under such plan (or waiver) as in effect on July 
        1, 2008.
            (C) Special rules.--A State shall not be ineligible under 
        subparagraph (A)--
                (i) for the calendar quarters before July 1, 2009, on 
            the basis of a restriction that was applied after July 1, 
            2008, and before the date of the enactment of this Act, if 
            the State prior to July 1, 2009, has reinstated eligibility 
            standards, methodologies, or procedures that are no more 
            restrictive than the eligibility standards, methodologies, 
            or procedures, respectively, under such plan (or waiver) as 
            in effect on July 1, 2008; or
                (ii) on the basis of a restriction that was directed to 
            be made under State law as in effect on July 1, 2008, and 
            would have been in effect as of such date, but for a delay 
            in the effective date of a waiver under section 1115 of 
            such Act with respect to such restriction.
        (2) Compliance with prompt pay requirements.--
            (A) Application to practitioners.--
                (i) In general.--Subject to the succeeding provisions 
            of this subparagraph, no State shall be eligible for an 
            increased FMAP rate as provided under this section for any 
            claim received by a State from a practitioner subject to 
            the terms of section 1902(a)(37)(A) of the Social Security 
            Act (42 U.S.C. 1396a(a)(37)(A)) for such days during any 
            period in which that State has failed to pay claims in 
            accordance with such section as applied under title XIX of 
            such Act.
                (ii) Reporting requirement.--Each State shall report to 
            the Secretary, on a quarterly basis, its compliance with 
            the requirements of clause (i) as such requirements pertain 
            to claims made for covered services during each month of 
            the preceding quarter.
                (iii) Waiver authority.--The Secretary may waive the 
            application of clause (i) to a State, or the reporting 
            requirement imposed under clause (ii), during any period in 
            which there are exigent circumstances, including natural 
            disasters, that prevent the timely processing of claims or 
            the submission of such a report.
                (iv) Application to claims.--Clauses (i) and (ii) shall 
            only apply to claims made for covered services after the 
            date of enactment of this Act.
            (B) Application to nursing facilities and hospitals.--
                (i) In general.--Subject to clause (ii), the provisions 
            of subparagraph (A) shall apply with respect to a nursing 
            facility or hospital, insofar as it is paid under title XIX 
            of the Social Security Act on the basis of submission of 
            claims, in the same or similar manner (but within the same 
            timeframe) as such provisions apply to practitioners 
            described in such subparagraph.
                (ii) Grace period.--Notwithstanding clause (i), no 
            period of ineligibility shall be imposed against a State 
            prior to June 1, 2009, on the basis of the State failing to 
            pay a claim in accordance with such clause.
        (3) State's application toward rainy day fund.--A State is not 
    eligible for an increase in its FMAP under subsection (b) or (c), 
    or an increase in a cap amount under subsection (d), if any amounts 
    attributable (directly or indirectly) to such increase are 
    deposited or credited into any reserve or rainy day fund of the 
    State.
        (4) No waiver authority.--Except as provided in paragraph 
    (2)(A)(iii), the Secretary may not waive the application of this 
    subsection or subsection (g) under section 1115 of the Social 
    Security Act or otherwise.
        (5) Limitation of fmap to 100 percent.--In no case shall an 
    increase in FMAP under this section result in an FMAP that exceeds 
    100 percent.
        (6) Treatment of certain expenditures.--With respect to 
    expenditures described in section 2105(a)(1)(B) of the Social 
    Security Act (42 U.S.C. 1397ee(a)(1)(B)), as in effect before April 
    1, 2009, that are made during the period beginning on October 1, 
    2008, and ending on March 31, 2009, any additional Federal funds 
    that are paid to a State as a result of this section that are 
    attributable to such expenditures shall not be counted against any 
    allotment under section 2104 of such Act (42 U.S.C. 1397dd).
    (g) Requirements.--
        (1) State reports.--Each State that is paid additional Federal 
    funds as a result of this section shall, not later than September 
    30, 2011, submit a report to the Secretary, in such form and such 
    manner as the Secretary shall determine, regarding how the 
    additional Federal funds were expended.
        (2) Additional requirement for certain states.--In the case of 
    a State that requires political subdivisions within the State to 
    contribute toward the non-Federal share of expenditures under the 
    State Medicaid plan required under section 1902(a)(2) of the Social 
    Security Act (42 U.S.C. 1396a(a)(2)), the State is not eligible for 
    an increase in its FMAP under subsection (b) or (c), or an increase 
    in a cap amount under subsection (d), if it requires that such 
    political subdivisions pay for quarters during the recession 
    adjustment period a greater percentage of the non-Federal share of 
    such expenditures, or a greater percentage of the non-Federal share 
    of payments under section 1923, than the respective percentage that 
    would have been required by the State under such plan on September 
    30, 2008, prior to application of this section.
    (h) Definitions.--In this section, except as otherwise provided:
        (1) FMAP.--The term ``FMAP'' means the Federal medical 
    assistance percentage, as defined in section 1905(b) of the Social 
    Security Act (42 U.S.C. 1396d(b)), as determined without regard to 
    this section except as otherwise specified.
        (2) Poverty line.--The term ``poverty line'' has the meaning 
    given such term in section 673(2) of the Community Services Block 
    Grant Act (42 U.S.C. 9902(2)), including any revision required by 
    such section.
        (3) Recession adjustment period.--The term ``recession 
    adjustment period'' means the period beginning on October 1, 2008, 
    and ending on December 31, 2010.
        (4) Secretary.--The term ``Secretary'' means the Secretary of 
    Health and Human Services.
        (5) State.--The term ``State'' has the meaning given such term 
    in section 1101(a)(1) of the Social Security Act (42 U.S.C. 
    1301(a)(1)) for purposes of title XIX of the Social Security Act 
    (42 U.S.C. 1396 et seq.).
    (i) Sunset.--This section shall not apply to items and services 
furnished after the end of the recession adjustment period.
    (j) Limitation on FMAP Change.--The increase in FMAP effected under 
section 614 of the Children's Health Insurance Program Reauthorization 
Act of 2009 shall not apply in the computation of the enhanced FMAP 
under title XXI or XIX of the Social Security Act for any period 
(notwithstanding subsection (i)).

SEC. 5002. TEMPORARY INCREASE IN DSH ALLOTMENTS DURING RECESSION.

    Section 1923(f)(3) of the Social Security Act (42 U.S.C. 1396r-
4(f)(3)) is amended--
        (1) in subparagraph (A), by striking ``paragraph (6)'' and 
    inserting ``paragraph (6) and subparagraph (E)''; and
        (2) by adding at the end the following new subparagraph:
            ``(E) Temporary increase in allotments during recession.--
                ``(i) In general.--Subject to clause (ii), the DSH 
            allotment for any State--

                    ``(I) for fiscal year 2009 is equal to 102.5 
                percent of the DSH allotment that would be determined 
                under this paragraph for the State for fiscal year 2009 
                without application of this subparagraph, 
                notwithstanding subparagraphs (B) and (C);
                    ``(II) for fiscal year 2010 is equal to 102.5 
                percent of the DSH allotment for the State for fiscal 
                year 2009, as determined under subclause (I); and
                    ``(III) for each succeeding fiscal year is equal to 
                the DSH allotment for the State under this paragraph 
                determined without applying subclauses (I) and (II).

                ``(ii) Application.--Clause (i) shall not apply to a 
            State for a year in the case that the DSH allotment for 
            such State for such year under this paragraph determined 
            without applying clause (i) would grow higher than the DSH 
            allotment specified under clause (i) for the State for such 
            year.''.

SEC. 5003. EXTENSION OF MORATORIA ON CERTAIN MEDICAID FINAL 
              REGULATIONS.

    (a) Final Regulations Relating to Optional Case Management Services 
and Allowable Provider Taxes.--Section 7001(a)(3)(A) of the 
Supplemental Appropriations Act, 2008 (Public Law 110-252) is amended 
by striking ``April 1, 2009'' and inserting ``July 1, 2009''.
    (b) Final Regulation Relating to School-Based Administration and 
School-Based Transportation.--Section 206 of the Medicare, Medicaid, 
and SCHIP Extension Act of 2007 (Public Law 110-173), as amended by 
section 7001(a)(2) of the Supplemental Appropriations Act, 2008 (Public 
Law 110-252), is amended by inserting ``(July 1, 2009, in the case of 
the final regulation relating to school-based administration and 
school-based transportation)'' after ``April 1, 2009,''.
    (c) Final Regulation Relating to Outpatient Hospital Facility 
Services.--Notwithstanding any other provision of law, with respect to 
expenditures for services furnished during the period beginning on 
December 8, 2008, and ending on June 30, 2009, the Secretary of Health 
and Human Services shall not take any action (through promulgation of 
regulation, issuance of regulatory guidance, use of Federal payment 
audit procedures, or other administrative action, policy, or practice, 
including a Medical Assistance Manual transmittal or letter to State 
Medicaid directors) to implement the final regulation relating to 
clarification of the definition of outpatient hospital facility 
services under the Medicaid program published on November 7, 2008 (73 
Federal Register 66187).
    (d) Sense of Congress.--It is the sense of Congress that the 
Secretary of Health and Human Services should not promulgate as final 
regulations any of the following proposed Medicaid regulations:
        (1) Cost limits for certain providers.--The proposed regulation 
    published on January 18, 2007, (72 Federal Register 2236) (and the 
    purported final regulation published on May 29, 2007 (72 Federal 
    Register 29748) and determined by the United States District Court 
    for the District of Columbia to have been ``improperly 
    promulgated'', Alameda County Medical Center, et al., v. Leavitt, 
    et al., Civil Action No. 08-0422, Mem. at 4 (D.D.C. May 23, 2008)).
        (2) Payments for graduate medical education.--The proposed 
    regulation published on May 23, 2007 (72 Federal Register 28930).
        (3) Rehabilitative services.--The proposed regulation published 
    on August 13, 2007 (72 Federal Register 45201).

SEC. 5004. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).

    (a) 18-Month Extension.--
        (1) In general.--Sections 1902(e)(1)(B) and 1925(f) of the 
    Social Security Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are 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. 5005. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM.

    (a) Extension.--Section 1902(a)(10)(E)(iv) of the Social Security 
Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking ``December 
2009'' and inserting ``December 2010''.
    (b) Extending Total Amount Available for Allocation.--Section 
1933(g) of such Act (42 U.S.C. 1396u-3(g)) is amended--
        (1) in paragraph (2)--
            (A) by striking ``and'' at the end of subparagraph (K);
            (B) in subparagraph (L), by striking the period at the end 
        and inserting a semicolon; and
            (C) by adding at the end the following new subparagraphs:
            ``(M) for the period that begins on January 1, 2010, and 
        ends on September 30, 2010, the total allocation amount is 
        $412,500,000; and
            ``(N) for the period that begins on October 1, 2010, and 
        ends on December 31, 2010, the total allocation amount is 
        $150,000,000.''; and
        (2) in paragraph (3), in the matter preceding subparagraph (A), 
    by striking ``or (L)'' and inserting ``(L), or (N)''.

SEC. 5006. PROTECTIONS FOR INDIANS UNDER MEDICAID AND CHIP.

    (a) Premiums and Cost Sharing Protection Under Medicaid.--
        (1) In general.--Section 1916 of the Social Security Act (42 
    U.S.C. 1396o) is amended--
            (A) in subsection (a), in the matter preceding paragraph 
        (1), by striking ``and (i)'' and inserting ``, (i), and (j)''; 
        and
            (B) by adding at the end the following new subsection:
    ``(j) No Premiums or Cost Sharing for Indians Furnished Items or 
Services Directly by Indian Health Programs or Through Referral Under 
Contract Health Services.--
        ``(1) No cost sharing for items or services furnished to 
    indians through indian health programs.--
            ``(A) In general.--No enrollment fee, premium, or similar 
        charge, and no deduction, copayment, cost sharing, or similar 
        charge shall be imposed against an Indian who is furnished an 
        item or service directly by the Indian Health Service, an 
        Indian Tribe, Tribal Organization, or Urban Indian Organization 
        or through referral under contract health services for which 
        payment may be made under this title.
            ``(B) No reduction in amount of payment to indian health 
        providers.--Payment due under this title to the Indian Health 
        Service, an Indian Tribe, Tribal Organization, or Urban Indian 
        Organization, or a health care provider through referral under 
        contract health services for the furnishing of an item or 
        service to an Indian who is eligible for assistance under such 
        title, may not be reduced by the amount of any enrollment fee, 
        premium, or similar charge, or any deduction, copayment, cost 
        sharing, or similar charge that would be due from the Indian 
        but for the operation of subparagraph (A).
        ``(2) Rule of construction.--Nothing in this subsection shall 
    be construed as restricting the application of any other 
    limitations on the imposition of premiums or cost sharing that may 
    apply to an individual receiving medical assistance under this 
    title who is an Indian.''.
        (2) Conforming amendment.--Section 1916A(b)(3) of such Act (42 
    U.S.C. 1396o-1(b)(3)) is amended--
            (A) in subparagraph (A), by adding at the end the following 
        new clause:
                ``(vii) An Indian who is furnished an item or service 
            directly by the Indian Health Service, an Indian Tribe, 
            Tribal Organization or Urban Indian Organization or through 
            referral under contract health services.''; and
            (B) in subparagraph (B), by adding at the end the following 
        new clause:
                ``(x) Items and services furnished to an Indian 
            directly by the Indian Health Service, an Indian Tribe, 
            Tribal Organization or Urban Indian Organization or through 
            referral under contract health services.''.
    (b) Treatment of Certain Property From Resources for Medicaid and 
CHIP Eligibility.--
        (1) Medicaid.--Section 1902 of the Social Security Act (42 
    U.S.C. 1396a), as amended by sections 203(c) and 211(a)(1)(A)(ii) 
    of the Children's Health Insurance Program Reauthorization Act of 
    2009 (Public Law 111-3), is amended by adding at the end the 
    following new subsection:
    ``(ff) Notwithstanding any other requirement of this title or any 
other provision of Federal or State law, a State shall disregard the 
following property from resources for purposes of determining the 
eligibility of an individual who is an Indian for medical assistance 
under this title:
        ``(1) Property, including real property and improvements, that 
    is held in trust, subject to Federal restrictions, or otherwise 
    under the supervision of the Secretary of the Interior, located on 
    a reservation, including any federally recognized Indian Tribe's 
    reservation, pueblo, or colony, including former reservations in 
    Oklahoma, Alaska Native regions established by the Alaska Native 
    Claims Settlement Act, and Indian allotments on or near a 
    reservation as designated and approved by the Bureau of Indian 
    Affairs of the Department of the Interior.
        ``(2) For any federally recognized Tribe not described in 
    paragraph (1), property located within the most recent boundaries 
    of a prior Federal reservation.
        ``(3) Ownership interests in rents, leases, royalties, or usage 
    rights related to natural resources (including extraction of 
    natural resources or harvesting of timber, other plants and plant 
    products, animals, fish, and shellfish) resulting from the exercise 
    of federally protected rights.
        ``(4) Ownership interests in or usage rights to items not 
    covered by paragraphs (1) through (3) that have unique religious, 
    spiritual, traditional, or cultural significance or rights that 
    support subsistence or a traditional lifestyle according to 
    applicable tribal law or custom.''.
        (2) Application to chip.--Section 2107(e)(1) of such Act (42 
    U.S.C. 1397gg(e)(1)), as amended by sections 203(a)(2), 203(d)(2), 
    214(b), 501(d)(2), and 503(a)(1) of the Children's Health Insurance 
    Program Reauthorization Act of 2009 (Public Law 111-3), is 
    amended--
            (A) by redesignating subparagraphs (C) through (I), as 
        subparagraphs (D) through (J), respectively; and
            (B) by inserting after subparagraph (B), the following new 
        subparagraph:
            ``(C) Section 1902(ff) (relating to disregard of certain 
        property for purposes of making eligibility determinations).''.
    (c) Continuation of Current Law Protections of Certain Indian 
Property From Medicaid Estate Recovery.--Section 1917(b)(3) of the 
Social Security Act (42 U.S.C. 1396p(b)(3)) is amended--
        (1) by inserting ``(A)'' after ``(3)''; and
        (2) by adding at the end the following new subparagraph:
            ``(B) The standards specified by the Secretary under 
        subparagraph (A) shall require that the procedures established 
        by the State agency under subparagraph (A) exempt income, 
        resources, and property that are exempt from the application of 
        this subsection as of April 1, 2003, under manual instructions 
        issued to carry out this subsection (as in effect on such date) 
        because of the Federal responsibility for Indian Tribes and 
        Alaska Native Villages. Nothing in this subparagraph shall be 
        construed as preventing the Secretary from providing additional 
        estate recovery exemptions under this title for Indians.''.
    (d) Rules Applicable Under Medicaid and Chip to Managed Care 
Entities With Respect to Indian Enrollees and Indian Health Care 
Providers and Indian Managed Care Entities.--
        (1) In general.--Section 1932 of the Social Security Act (42 
    U.S.C. 1396u-2) is amended by adding at the end the following new 
    subsection:
    ``(h) Special Rules With Respect to Indian Enrollees, Indian Health 
Care Providers, and Indian Managed Care Entities.--
        ``(1) Enrollee option to select an indian health care provider 
    as primary care provider.--In the case of a non-Indian Medicaid 
    managed care entity that--
            ``(A) has an Indian enrolled with the entity; and
            ``(B) has an Indian health care provider that is 
        participating as a primary care provider within the network of 
        the entity,
    insofar as the Indian is otherwise eligible to receive services 
    from such Indian health care provider and the Indian health care 
    provider has the capacity to provide primary care services to such 
    Indian, the contract with the entity under section 1903(m) or under 
    section 1905(t)(3) shall require, as a condition of receiving 
    payment under such contract, that the Indian shall be allowed to 
    choose such Indian health care provider as the Indian's primary 
    care provider under the entity.
        ``(2) Assurance of payment to indian health care providers for 
    provision of covered services.--Each contract with a managed care 
    entity under section 1903(m) or under section 1905(t)(3) shall 
    require any such entity, as a condition of receiving payment under 
    such contract, to satisfy the following requirements:
            ``(A) Demonstration of access to indian health care 
        providers and application of alternative payment 
        arrangements.--Subject to subparagraph (C), to--
                ``(i) demonstrate that the number of Indian health care 
            providers that are participating providers with respect to 
            such entity are sufficient to ensure timely access to 
            covered Medicaid managed care services for those Indian 
            enrollees who are eligible to receive services from such 
            providers; and
                ``(ii) agree to pay Indian health care providers, 
            whether such providers are participating or 
            nonparticipating providers with respect to the entity, for 
            covered Medicaid managed care services provided to those 
            Indian enrollees who are eligible to receive services from 
            such providers at a rate equal to the rate negotiated 
            between such entity and the provider involved or, if such a 
            rate has not been negotiated, at a rate that is not less 
            than the level and amount of payment which the entity would 
            make for the services if the services were furnished by a 
            participating provider which is not an Indian health care 
            provider.
        The Secretary shall establish procedures for applying the 
        requirements of clause (i) in States where there are no or few 
        Indian health providers.
            ``(B) Prompt payment.--To agree to make prompt payment 
        (consistent with rule for prompt payment of providers under 
        section 1932(f)) to Indian health care providers that are 
        participating providers with respect to such entity or, in the 
        case of an entity to which subparagraph (A)(ii) or (C) applies, 
        that the entity is required to pay in accordance with that 
        subparagraph.
            ``(C) Application of special payment requirements for 
        federally-qualified health centers and for services provided by 
        certain indian health care providers.--
                ``(i) Federally-qualified health centers.--

                    ``(I) Managed care entity payment requirement.--To 
                agree to pay any Indian health care provider that is a 
                federally-qualified health center under this title but 
                not a participating provider with respect to the 
                entity, for the provision of covered Medicaid managed 
                care services by such provider to an Indian enrollee of 
                the entity at a rate equal to the amount of payment 
                that the entity would pay a federally-qualified health 
                center that is a participating provider with respect to 
                the entity but is not an Indian health care provider 
                for such services.
                    ``(II) Continued application of state requirement 
                to make supplemental payment.--Nothing in subclause (I) 
                or subparagraph (A) or (B) shall be construed as 
                waiving the application of section 1902(bb)(5) 
                regarding the State plan requirement to make any 
                supplemental payment due under such section to a 
                federally-qualified health center for services 
                furnished by such center to an enrollee of a managed 
                care entity (regardless of whether the federally-
                qualified health center is or is not a participating 
                provider with the entity).

                ``(ii) Payment rate for services provided by certain 
            indian health care providers.--If the amount paid by a 
            managed care entity to an Indian health care provider that 
            is not a federally-qualified health center for services 
            provided by the provider to an Indian enrollee with the 
            managed care entity is less than the rate that applies to 
            the provision of such services by the provider under the 
            State plan, the plan shall provide for payment to the 
            Indian health care provider, whether the provider is a 
            participating or nonparticipating provider with respect to 
            the entity, of the difference between such applicable rate 
            and the amount paid by the managed care entity to the 
            provider for such services.
            ``(D) Construction.--Nothing in this paragraph shall be 
        construed as waiving the application of section 1902(a)(30)(A) 
        (relating to application of standards to assure that payments 
        are consistent with efficiency, economy, and quality of care).
        ``(3) Special rule for enrollment for indian managed care 
    entities.--Regarding the application of a Medicaid managed care 
    program to Indian Medicaid managed care entities, an Indian 
    Medicaid managed care entity may restrict enrollment under such 
    program to Indians in the same manner as Indian Health Programs may 
    restrict the delivery of services to Indians.
        ``(4) Definitions.--For purposes of this subsection:
            ``(A) Indian health care provider.--The term `Indian health 
        care provider' means an Indian Health Program or an Urban 
        Indian Organization.
            ``(B) Indian medicaid managed care entity.--The term 
        `Indian Medicaid managed care entity' means a managed care 
        entity that is controlled (within the meaning of the last 
        sentence of section 1903(m)(1)(C)) by the Indian Health 
        Service, a Tribe, Tribal Organization, or Urban Indian 
        Organization, or a consortium, which may be composed of 1 or 
        more Tribes, Tribal Organizations, or Urban Indian 
        Organizations, and which also may include the Service.
            ``(C) Non-indian medicaid managed care entity.--The term 
        `non-Indian Medicaid managed care entity' means a managed care 
        entity that is not an Indian Medicaid managed care entity.
            ``(D) Covered medicaid managed care services.--The term 
        `covered Medicaid managed care services' means, with respect to 
        an individual enrolled with a managed care entity, items and 
        services for which benefits are available with respect to the 
        individual under the contract between the entity and the State 
        involved.
            ``(E) Medicaid managed care program.--The term `Medicaid 
        managed care program' means a program under sections 1903(m), 
        1905(t), and 1932 and includes a managed care program operating 
        under a waiver under section 1915(b) or 1115 or otherwise.''.
        (2) Application to chip.--Section 2107(e)(1) of such Act (42 
    U.S.C. 1397gg(1)), as amended by subsection (b)(2), is amended--
            (A) by redesignating subparagraph (J) as subparagraph (K); 
        and
            (B) by inserting after subparagraph (I) the following new 
        subparagraph:
            ``(J) Subsections (a)(2)(C) and (h) of section 1932.''.
    (e) Consultation on Medicaid, Chip, and Other Health Care Programs 
Funded Under the Social Security Act Involving Indian Health Programs 
and Urban Indian Organizations.--
        (1) Consultation with tribal technical advisory group (ttag).--
    The Secretary of Health and Human Services shall maintain within 
    the Centers for Medicaid & Medicare Services (CMS) a Tribal 
    Technical Advisory Group (TTAG), which was first established in 
    accordance with requirements of the charter dated September 30, 
    2003, and the Secretary of Health and Human Services shall include 
    in such Group a representative of a national urban Indian health 
    organization and a representative of the Indian Health Service. The 
    inclusion of a representative of a national urban Indian health 
    organization in such Group shall not affect the nonapplication of 
    the Federal Advisory Committee Act (5 U.S.C. App.) to such Group.
        (2) Solicitation of advice under medicaid and chip.--
            (A) Medicaid state plan amendment.--Section 1902(a) of the 
        Social Security Act (42 U.S.C. 1396a(a)), as amended by section 
        501(d)(1) of the Children's Health Insurance Program 
        Reauthorization Act of 2009 (Public Law 111-3), (42 U.S.C. 
        1396a(a)) is amended--
                (i) in paragraph (71), by striking ``and'' at the end;
                (ii) in paragraph (72), by striking the period at the 
            end and inserting ``; and''; and
                (iii) by inserting after paragraph (72), the following 
            new paragraph:
        ``(73) in the case of any State in which 1 or more Indian 
    Health Programs or Urban Indian Organizations furnishes health care 
    services, provide for a process under which the State seeks advice 
    on a regular, ongoing basis from designees of such Indian Health 
    Programs and Urban Indian Organizations on matters relating to the 
    application of this title that are likely to have a direct effect 
    on such Indian Health Programs and Urban Indian Organizations and 
    that--
            ``(A) shall include solicitation of advice prior to 
        submission of any plan amendments, waiver requests, and 
        proposals for demonstration projects likely to have a direct 
        effect on Indians, Indian Health Programs, or Urban Indian 
        Organizations; and
            ``(B) may include appointment of an advisory committee and 
        of a designee of such Indian Health Programs and Urban Indian 
        Organizations to the medical care advisory committee advising 
        the State on its State plan under this title.''.
            (B) Application to chip.--Section 2107(e)(1) of such Act 
        (42 U.S.C. 1397gg(1)), as amended by subsections (b)(2) and (d) 
        (2), is amended--
                (i) by redesignating subparagraphs (B), (C), (D), (E), 
            (F), (G), (H), (I), (J), and (K) as subparagraphs (D), (F), 
            (B), (E), (G), (I), (H), (J), (K), and (L), respectively;
                (ii) by moving such subparagraphs so as to appear in 
            alphabetical order; and
                (iii) by inserting after subparagraph (B) (as so 
            redesiganted and moved) the following new subparagraph:
            ``(C) Section 1902(a)(73) (relating to requiring certain 
        States to seek advice from designees of Indian Health Programs 
        and Urban Indian Organizations).''.
        (3) Rule of construction.--Nothing in the amendments made by 
    this subsection shall be construed as superseding existing advisory 
    committees, working groups, guidance, or other advisory procedures 
    established by the Secretary of Health and Human Services or by any 
    State with respect to the provision of health care to Indians.
    (f) Effective Date.--The amendments made by this section shall take 
effect on July 1, 2009.

SEC. 5007. FUNDING FOR OVERSIGHT AND IMPLEMENTATION.

    (a) Oversight.--For purposes of ensuring the proper expenditure of 
Federal funds under title XIX of the Social Security Act (42 U.S.C. 
1396 et seq.), there is appropriated to the Office of the Inspector 
General of the Department of Health and Human Services, out of any 
money in the Treasury not otherwise appropriated and without further 
appropriation, $31,250,000 for fiscal year 2009, which shall remain 
available for expenditure until September 30, 2011, and shall be in 
addition to any other amounts appropriated or made available to such 
Office for such purposes.
    (b) Implementation of Increased FMAP.--For purposes of carrying out 
section 5001, there is appropriated to the Secretary of Health and 
Human Services, out of any money in the Treasury not otherwise 
appropriated and without further appropriation, $5,000,000 for fiscal 
year 2009, which shall remain available for expenditure until September 
30, 2011, and shall be in addition to any other amounts appropriated or 
made available to such Secretary for such purposes.

SEC. 5008. GAO STUDY AND REPORT REGARDING STATE NEEDS DURING PERIODS OF 
              NATIONAL ECONOMIC DOWNTURN.

    (a) In General.--The Comptroller General of the United States shall 
study the period of national economic downturn in effect on the date of 
enactment of this Act, as well as previous periods of national economic 
downturn since 1974, for the purpose of developing recommendations for 
addressing the needs of States during such periods. As part of such 
analysis, the Comptroller General shall study the past and projected 
effects of temporary increases in the Federal medical assistance 
percentage under the Medicaid program with respect to such periods.
    (b) Report.--Not later than April 1, 2011, the Comptroller General 
of the United States shall submit a report to the appropriate 
committees of Congress on the results of the study conducted under 
paragraph (1). Such report shall include the following:
        (1) Such recommendations as the Comptroller General determines 
    appropriate for modifying the national economic downturn assistance 
    formula for temporary adjustment of the Federal medical assistance 
    percentage under Medicaid (also referred to as a ``countercyclical 
    FMAP'') described in GAO report number GAO-07-97 to improve the 
    effectiveness of the application of such percentage in addressing 
    the needs of States during periods of national economic downturn, 
    including recommendations for--
            (A) improvements to the factors that would begin and end 
        the application of such percentage;
            (B) how the determination of the amount of such percentage 
        could be adjusted to address State and regional economic 
        variations during such periods; and
            (C) how the determination of the amount of such percentage 
        could be adjusted to be more responsive to actual Medicaid 
        costs incurred by States during such periods.
        (2) An analysis of the impact on States during such periods 
    of--
            (A) declines in private health benefits coverage;
            (B) declines in State revenues; and
            (C) caseload maintenance and growth under Medicaid, the 
        Children's Health Insurance Program, or any other publicly-
        funded programs to provide health benefits coverage for State 
        residents.
        (3) Identification of, and recommendations for addressing, the 
    effects on States of any other specific economic indicators that 
    the Comptroller General determines appropriate.

          TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

SEC. 6000. TABLE OF CONTENTS.

    The table of contents of this title is as follows:

          TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

Sec. 6000. Table of contents.
Sec. 6001. Broadband Technology Opportunities Program.

SEC. 6001. BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM.

    (a) The Assistant Secretary of Commerce for Communications and 
Information (Assistant Secretary), in consultation with the Federal 
Communications Commission (Commission), shall establish a national 
broadband service development and expansion program in conjunction with 
the technology opportunities program, which shall be referred to as the 
Broadband Technology Opportunities Program. The Assistant Secretary 
shall ensure that the program complements and enhances and does not 
conflict with other Federal broadband initiatives and programs.
    (b) The purposes of the program are to--
        (1) provide access to broadband service to consumers residing 
    in unserved areas of the United States;
        (2) provide improved access to broadband service to consumers 
    residing in underserved areas of the United States;
        (3) provide broadband education, awareness, training, access, 
    equipment, and support to--
            (A) schools, libraries, medical and healthcare providers, 
        community colleges and other institutions of higher education, 
        and other community support organizations and entities to 
        facilitate greater use of broadband service by or through these 
        organizations;
            (B) organizations and agencies that provide outreach, 
        access, equipment, and support services to facilitate greater 
        use of broadband service by low-income, unemployed, aged, and 
        otherwise vulnerable populations; and
            (C) job-creating strategic facilities located within a 
        State-designated economic zone, Economic Development District 
        designated by the Department of Commerce, Renewal Community or 
        Empowerment Zone designated by the Department of Housing and 
        Urban Development, or Enterprise Community designated by the 
        Department of Agriculture;
        (4) improve access to, and use of, broadband service by public 
    safety agencies; and
        (5) stimulate the demand for broadband, economic growth, and 
    job creation.
    (c) The Assistant Secretary may consult a State, the District of 
Columbia, or territory or possession of the United States with respect 
to--
        (1) the identification of areas described in subsection (b)(1) 
    or (2) located in that State; and
        (2) the allocation of grant funds within that State for 
    projects in or affecting the State.
    (d) The Assistant Secretary shall--
        (1) establish and implement the grant program as expeditiously 
    as practicable;
        (2) ensure that all awards are made before the end of fiscal 
    year 2010;
        (3) seek such assurances as may be necessary or appropriate 
    from grantees under the program that they will substantially 
    complete projects supported by the program in accordance with 
    project timelines, not to exceed 2 years following an award; and
        (4) report on the status of the program to the Committees on 
    Appropriations of the House of Representatives and the Senate, the 
    Committee on Energy and Commerce of the House of Representatives, 
    and the Committee on Commerce, Science, and Transportation of the 
    Senate, every 90 days.
    (e) To be eligible for a grant under the program, an applicant 
shall--
        (1)(A) be a State or political subdivision thereof, the 
    District of Columbia, a territory or possession of the United 
    States, an Indian tribe (as defined in section 4 of the Indian 
    Self-Determination and Education Assistance Act (25 U.S.C. 450(b)) 
    or native Hawaiian organization;
            (B) a nonprofit--
                (i) foundation,
                (ii) corporation,
                (iii) institution, or
                (iv) association; or
            (C) any other entity, including a broadband service or 
        infrastructure provider, that the Assistant Secretary finds by 
        rule to be in the public interest. In establishing such rule, 
        the Assistant Secretary shall to the extent practicable promote 
        the purposes of this section in a technologically neutral 
        manner;
        (2) submit an application, at such time, in such form, and 
    containing such information as the Assistant Secretary may require;
        (3) provide a detailed explanation of how any amount received 
    under the program will be used to carry out the purposes of this 
    section in an efficient and expeditious manner, including a showing 
    that the project would not have been implemented during the grant 
    period without Federal grant assistance;
        (4) demonstrate, to the satisfaction of the Assistant 
    Secretary, that it is capable of carrying out the project or 
    function to which the application relates in a competent manner in 
    compliance with all applicable Federal, State, and local laws;
        (5) demonstrate, to the satisfaction of the Assistant 
    Secretary, that it will appropriate (if the applicant is a State or 
    local government agency) or otherwise unconditionally obligate, 
    from non-Federal sources, funds required to meet the requirements 
    of subsection (f);
        (6) disclose to the Assistant Secretary the source and amount 
    of other Federal or State funding sources from which the applicant 
    receives, or has applied for, funding for activities or projects to 
    which the application relates; and
        (7) provide such assurances and procedures as the Assistant 
    Secretary may require to ensure that grant funds are used and 
    accounted for in an appropriate manner.
    (f) The Federal share of any project may not exceed 80 percent, 
except that the Assistant Secretary may increase the Federal share of a 
project above 80 percent if--
        (1) the applicant petitions the Assistant Secretary for a 
    waiver; and
        (2) the Assistant Secretary determines that the petition 
    demonstrates financial need.
    (g) The Assistant Secretary may make competitive grants under the 
program to--
        (1) acquire equipment, instrumentation, networking capability, 
    hardware and software, digital network technology, and 
    infrastructure for broadband services;
        (2) construct and deploy broadband service related 
    infrastructure;
        (3) ensure access to broadband service by community anchor 
    institutions;
        (4) facilitate access to broadband service by low-income, 
    unemployed, aged, and otherwise vulnerable populations in order to 
    provide educational and employment opportunities to members of such 
    populations;
        (5) construct and deploy broadband facilities that improve 
    public safety broadband communications services; and
        (6) undertake such other projects and activities as the 
    Assistant Secretary finds to be consistent with the purposes for 
    which the program is established.
    (h) The Assistant Secretary, in awarding grants under this section, 
shall, to the extent practical--
        (1) award not less than 1 grant in each State;
        (2) consider whether an application to deploy infrastructure in 
    an area--
            (A) will, if approved, increase the affordability of, and 
        subscribership to, service to the greatest population of users 
        in the area;
            (B) will, if approved, provide the greatest broadband speed 
        possible to the greatest population of users in the area;
            (C) will, if approved, enhance service for health care 
        delivery, education, or children to the greatest population of 
        users in the area; and
            (D) will, if approved, not result in unjust enrichment as a 
        result of support for non-recurring costs through another 
        Federal program for service in the area; and
        (3) consider whether the applicant is a socially and 
    economically disadvantaged small business concern as defined under 
    section 8(a) of the Small Business Act (15 U.S.C. 637).
    (i) The Assistant Secretary--
        (1) shall require any entity receiving a grant pursuant to this 
    section to report quarterly, in a format specified by the Assistant 
    Secretary, on such entity's use of the assistance and progress 
    fulfilling the objectives for which such funds were granted, and 
    the Assistant Secretary shall make these reports available to the 
    public;
        (2) may establish additional reporting and information 
    requirements for any recipient of any assistance made available 
    pursuant to this section;
        (3) shall establish appropriate mechanisms to ensure 
    appropriate use and compliance with all terms of any use of funds 
    made available pursuant to this section;
        (4) may, in addition to other authority under applicable law, 
    deobligate awards to grantees that demonstrate an insufficient 
    level of performance, or wasteful or fraudulent spending, as 
    defined in advance by the Assistant Secretary, and award these 
    funds competitively to new or existing applicants consistent with 
    this section; and
        (5) shall create and maintain a fully searchable database, 
    accessible on the Internet at no cost to the public, that contains 
    at least a list of each entity that has applied for a grant under 
    this section, a description of each application, the status of each 
    such application, the name of each entity receiving funds made 
    available pursuant to this section, the purpose for which such 
    entity is receiving such funds, each quarterly report submitted by 
    the entity pursuant to this section, and such other information 
    sufficient to allow the public to understand and monitor grants 
    awarded under the program.
    (j) Concurrent with the issuance of the Request for Proposal for 
grant applications pursuant to this section, the Assistant Secretary 
shall, in coordination with the Commission, publish the non-
discrimination and network interconnection obligations that shall be 
contractual conditions of grants awarded under this section, including, 
at a minimum, adherence to the principles contained in the Commission's 
broadband policy statement (FCC 05-15, adopted August 5, 2005).
    (k)(1) Not later than 1 year after the date of enactment of this 
section, the Commission shall submit to the Committee on Energy and 
Commerce of the House of Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate, a report containing a 
national broadband plan.
        (2) The national broadband plan required by this section shall 
    seek to ensure that all people of the United States have access to 
    broadband capability and shall establish benchmarks for meeting 
    that goal. The plan shall also include--
            (A) an analysis of the most effective and efficient 
        mechanisms for ensuring broadband access by all people of the 
        United States;
            (B) a detailed strategy for achieving affordability of such 
        service and maximum utilization of broadband infrastructure and 
        service by the public;
            (C) an evaluation of the status of deployment of broadband 
        service, including progress of projects supported by the grants 
        made pursuant to this section; and
            (D) a plan for use of broadband infrastructure and services 
        in advancing consumer welfare, civic participation, public 
        safety and homeland security, community development, health 
        care delivery, energy independence and efficiency, education, 
        worker training, private sector investment, entrepreneurial 
        activity, job creation and economic growth, and other national 
        purposes.
        (3) In developing the plan, the Commission shall have access to 
    data provided to other Government agencies under the Broadband Data 
    Improvement Act (47 U.S.C. 1301 note).
    (l) The Assistant Secretary shall develop and maintain a 
comprehensive nationwide inventory map of existing broadband service 
capability and availability in the United States that depicts the 
geographic extent to which broadband service capability is deployed and 
available from a commercial provider or public provider throughout each 
State. Not later than 2 years after the date of the enactment of this 
Act, the Assistant Secretary shall make the broadband inventory map 
developed and maintained pursuant to this section accessible by the 
public on a World Wide Web site of the National Telecommunications and 
Information Administration in a form that is interactive and 
searchable.
    (m) The Assistant Secretary shall have the authority to prescribe 
such rules as are necessary to carry out the purposes of this section.

              TITLE VII--LIMITS ON EXECUTIVE COMPENSATION

SEC. 7000. TABLE OF CONTENTS.

    The table of contents of this title is as follows:

               TITLE VII--LIMITS ON EXECUTIVE COMPENSATION

Sec. 7000. Table of contents.
Sec. 7001. Executive compensation and corporate governance.
Sec. 7002. Applicability with respect to loan modifications.

SEC. 7001. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.

    Section 111 of the Emergency Economic Stabilization Act of 2008 (12 
U.S.C. 5221) is amended to read as follows:

``SEC. 111. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.

    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
        ``(1) Senior executive officer.--The term `senior executive 
    officer' means an individual who is 1 of the top 5 most highly paid 
    executives of a public company, whose compensation is required to 
    be disclosed pursuant to the Securities Exchange Act of 1934, and 
    any regulations issued thereunder, and non-public company 
    counterparts.
        ``(2) Golden parachute payment.--The term `golden parachute 
    payment' means any payment to a senior executive officer for 
    departure from a company for any reason, except for payments for 
    services performed or benefits accrued.
        ``(3) TARP recipient.--The term `TARP recipient' means any 
    entity that has received or will receive financial assistance under 
    the financial assistance provided under the TARP.
        ``(4) Commission.--The term `Commission' means the Securities 
    and Exchange Commission.
        ``(5) Period in which obligation is outstanding; rule of 
    construction.--For purposes of this section, the period in which 
    any obligation arising from financial assistance provided under the 
    TARP remains outstanding does not include any period during which 
    the Federal Government only holds warrants to purchase common stock 
    of the TARP recipient.
    ``(b) Executive Compensation and Corporate Governance.--
        ``(1) Establishment of standards.--During the period in which 
    any obligation arising from financial assistance provided under the 
    TARP remains outstanding, each TARP recipient shall be subject to--
            ``(A) the standards established by the Secretary under this 
        section; and
            ``(B) the provisions of section 162(m)(5) of the Internal 
        Revenue Code of 1986, as applicable.
        ``(2) Standards required.--The Secretary shall require each 
    TARP recipient to meet appropriate standards for executive 
    compensation and corporate governance.
        ``(3) Specific requirements.--The standards established under 
    paragraph (2) shall include the following:
            ``(A) Limits on compensation that exclude incentives for 
        senior executive officers of the TARP recipient to take 
        unnecessary and excessive risks that threaten the value of such 
        recipient during the period in which any obligation arising 
        from financial assistance provided under the TARP remains 
        outstanding.
            ``(B) A provision for the recovery by such TARP recipient 
        of any bonus, retention award, or incentive compensation paid 
        to a senior executive officer and any of the next 20 most 
        highly-compensated employees of the TARP recipient based on 
        statements of earnings, revenues, gains, or other criteria that 
        are later found to be materially inaccurate.
            ``(C) A prohibition on such TARP recipient making any 
        golden parachute payment to a senior executive officer or any 
        of the next 5 most highly-compensated employees of the TARP 
        recipient during the period in which any obligation arising 
        from financial assistance provided under the TARP remains 
        outstanding.
            ``(D)(i) A prohibition on such TARP recipient paying or 
        accruing any bonus, retention award, or incentive compensation 
        during the period in which any obligation arising from 
        financial assistance provided under the TARP remains 
        outstanding, except that any prohibition developed under this 
        paragraph shall not apply to the payment of long-term 
        restricted stock by such TARP recipient, provided that such 
        long-term restricted stock--
                ``(I) does not fully vest during the period in which 
            any obligation arising from financial assistance provided 
            to that TARP recipient remains outstanding;
                ``(II) has a value in an amount that is not greater 
            than \1/3\ of the total amount of annual compensation of 
            the employee receiving the stock; and
                ``(III) is subject to such other terms and conditions 
            as the Secretary may determine is in the public interest.
            ``(ii) The prohibition required under clause (i) shall 
        apply as follows:
                ``(I) For any financial institution that received 
            financial assistance provided under the TARP equal to less 
            than $25,000,000, the prohibition shall apply only to the 
            most highly compensated employee of the financial 
            institution.
                ``(II) For any financial institution that received 
            financial assistance provided under the TARP equal to at 
            least $25,000,000, but less than $250,000,000, the 
            prohibition shall apply to at least the 5 most highly-
            compensated employees of the financial institution, or such 
            higher number as the Secretary may determine is in the 
            public interest with respect to any TARP recipient.
                ``(III) For any financial institution that received 
            financial assistance provided under the TARP equal to at 
            least$250,000,000, but less than $500,000,000, the 
            prohibition shall apply to the senior executive officers 
            and at least the 10 next most highly-compensated employees, 
            or such higher number as the Secretary may determine is in 
            the public interest with respect to any TARP recipient.
                ``(IV) For any financial institution that received 
            financial assistance provided under the TARP equal to 
            $500,000,000 or more, the prohibition shall apply to the 
            senior executive officers and at least the 20 next most 
            highly-compensated employees, or such higher number as the 
            Secretary may determine is in the public interest with 
            respect to any TARP recipient.
            ``(iii) The prohibition required under clause (i) shall not 
        be construed to prohibit any bonus payment required to be paid 
        pursuant to a written employment contract executed on or before 
        February 11, 2009, as such valid employment contracts are 
        determined by the Secretary or the designee of the Secretary.
            ``(E) A prohibition on any compensation plan that would 
        encourage manipulation of the reported earnings of such TARP 
        recipient to enhance the compensation of any of its employees.
            ``(F) A requirement for the establishment of a Board 
        Compensation Committee that meets the requirements of 
        subsection (c).
        ``(4) Certification of compliance.--The chief executive officer 
    and chief financial officer (or the equivalents thereof) of each 
    TARP recipient shall provide a written certification of compliance 
    by the TARP recipient with the requirements of this section--
            ``(A) in the case of a TARP recipient, the securities of 
        which are publicly traded, to the Securities and Exchange 
        Commission, together with annual filings required under the 
        securities laws; and
            ``(B) in the case of a TARP recipient that is not a 
        publicly traded company, to the Secretary.
    ``(c) Board Compensation Committee.--
        ``(1) Establishment of board required.--Each TARP recipient 
    shall establish a Board Compensation Committee, comprised entirely 
    of independent directors, for the purpose of reviewing employee 
    compensation plans.
        ``(2) Meetings.--The Board Compensation Committee of each TARP 
    recipient shall meet at least semiannually to discuss and evaluate 
    employee compensation plans in light of an assessment of any risk 
    posed to the TARP recipient from such plans.
        ``(3) Compliance by non-sec registrants.--In the case of any 
    TARP recipient, the common or preferred stock of which is not 
    registered pursuant to the Securities Exchange Act of 1934, and 
    that has received $25,000,000 or less of TARP assistance, the 
    duties of the Board Compensation Committee under this subsection 
    shall be carried out by the board of directors of such TARP 
    recipient.
    ``(d) Limitation on Luxury Expenditures.--The board of directors of 
any TARP recipient shall have in place a company-wide policy regarding 
excessive or luxury expenditures, as identified by the Secretary, which 
may include excessive expenditures on--
        ``(1) entertainment or events;
        ``(2) office and facility renovations;
        ``(3) aviation or other transportation services; or
        ``(4) other activities or events that are not reasonable 
    expenditures for staff development, reasonable performance 
    incentives, or other similar measures conducted in the normal 
    course of the business operations of the TARP recipient.
    ``(e) Shareholder Approval of Executive Compensation.--
        ``(1) Annual shareholder approval of executive compensation.--
    Any proxy or consent or authorization for an annual or other 
    meeting of the shareholders of any TARP recipient during the period 
    in which any obligation arising from financial assistance provided 
    under the TARP remains outstanding shall permit a separate 
    shareholder vote to approve the compensation of executives, as 
    disclosed pursuant to the compensation disclosure rules of the 
    Commission (which disclosure shall include the compensation 
    discussion and analysis, the compensation tables, and any related 
    material).
        ``(2) Nonbinding vote.--A shareholder vote described in 
    paragraph (1) shall not be binding on the board of directors of a 
    TARP recipient, and may not be construed as overruling a decision 
    by such board, nor to create or imply any additional fiduciary duty 
    by such board, nor shall such vote be construed to restrict or 
    limit the ability of shareholders to make proposals for inclusion 
    in proxy materials related to executive compensation.
        ``(3) Deadline for rulemaking.--Not later than 1 year after the 
    date of enactment of the American Recovery and Reinvestment Act of 
    2009, the Commission shall issue any final rules and regulations 
    required by this subsection.
    ``(f) Review of Prior Payments to Executives.--
        ``(1) In general.--The Secretary shall review bonuses, 
    retention awards, and other compensation paid to the senior 
    executive officers and the next 20 most highly-compensated 
    employees of each entity receiving TARP assistance before the date 
    of enactment of the American Recovery and Reinvestment Act of 2009, 
    to determine whether any such payments were inconsistent with the 
    purposes of this section or the TARP or were otherwise contrary to 
    the public interest.
        ``(2) Negotiations for reimbursement.--If the Secretary makes a 
    determination described in paragraph (1), the Secretary shall seek 
    to negotiate with the TARP recipient and the subject employee for 
    appropriate reimbursements to the Federal Government with respect 
    to compensation or bonuses.
    ``(g) No Impediment to Withdrawal by TARP Recipients.--Subject to 
consultation with the appropriate Federal banking agency (as that term 
is defined in section 3 of the Federal Deposit Insurance Act), if any, 
the Secretary shall permit a TARP recipient to repay any assistance 
previously provided under the TARP to such financial institution, 
without regard to whether the financial institution has replaced such 
funds from any other source or to any waiting period, and when such 
assistance is repaid, the Secretary shall liquidate warrants associated 
with such assistance at the current market price.
    ``(h) Regulations.--The Secretary shall promulgate regulations to 
implement this section.''.

SEC. 7002. APPLICABILITY WITH RESPECT TO LOAN MODIFICATIONS.

    Section 109(a) of the Emergency Economic Stabilization Act of 2008 
(12 U.S.C. 5219(a)) is amended--
        (1) by striking ``To the extent'' and inserting the following:
        ``(1) In general.--To the extent''; and
        (2) by adding at the end the following:
        ``(2) Waiver of certain provisions in connection with loan 
    modifications.--The Secretary shall not be required to apply 
    executive compensation restrictions under section 111, or to 
    receive warrants or debt instruments under section 113, solely in 
    connection with any loan modification under this section.''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.`