In the Senate of the United States, 

February 10, 2009. 

Resolved, That the bill from the House of Representatives (H.R. 1) entitled ‘‘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.’’, do pass with the following 

AMENDMENT: 

Strike out all after the enacting clause and insert 

the following: 

1 SECTION 1. SHORT TITLE. 

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

3 Reinvestment Act of 2009’’. 

4 SEC. 2. TABLE OF CONTENTS. 

5 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 
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TITLE IV—ENERGY AND WATER DEVELOPMENT 

TITLE V—FINANCIAL SERVICES AND GENERAL GOVERNMENT 

TITLE VI—DEPARTMENT OF HOMELAND SECURITY 

TITLE VII—INTERIOR, ENVIRONMENT, AND RELATED AGENCIES 

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

TITLE IX—LEGISLATIVE BRANCH 

TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND 

RELATED AGENCIES 

TITLE XI—STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS 

TITLE XII—TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, 

AND RELATED AGENCIES 

TITLE XIII—HEALTH INFORMATION TECHNOLOGY 

TITLE XIV—STATE FISCAL STABILIZATION 

TITLE XV—RECOVERY ACCOUNTABILITY AND TRANSPARENCY BOARD 

AND RECOVERY INDEPENDENT ADVISORY PANEL 

TITLE XVI—GENERAL PROVISIONS—THIS ACT 

DIVISION B—TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL 

RELIEF, AND OTHER PROVISIONS 

TITLE I—TAX PROVISIONS 

TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES 

TITLE III—HEALTH INSURANCE ASSISTANCE 

TITLE IV—HEALTH INFORMATION TECHNOLOGY 

TITLE V—STATE FISCAL RELIEF 

1 SEC. 3. REFERENCES. 

2 Except as expressly provided otherwise, any reference 

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

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

6 DIVISION A—APPROPRIATIONS 

7 PROVISIONS 

8 That the following sums are appropriated, out of any 

9 money in the Treasury not otherwise appropriated, for the 

10 fiscal year ending September 30, 2009, and for other pur11 poses, namely: 
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1 TITLE I—AGRICULTURE, RURAL DEVELOPMENT, 

2 FOOD AND DRUG ADMINISTRATION, AND RE3 LATED AGENCIES 

4 DEPARTMENT OF AGRICULTURE 

5 OFFICE OF THE SECRETARY

6 (INCLUDING TRANSFERS OF FUNDS)

7 For an additional amount for the ‘‘Office of the Sec8 retary’’, $200,000,000, to remain available until September 

9 30, 2010: Provided, That the Secretary may transfer these 

10 funds to agencies of the Department, other than the Forest 

11 Service, for necessary replacement, modernization, or up12 grades of laboratories or other facilities to improve work13 place safety and mission-area efficiencies as deemed appro14 priate by the Secretary: Provided further, that the Secretary 

15 shall provide to the Committees on Appropriations of the 

16 House and Senate a plan on the allocation of these funds 

17 no later than 60 days after the date of enactment of this 

18 Act. 

19 OFFICE OF INSPECTOR GENERAL

20 For an additional amount for ‘‘Office of Inspector 

21 General’’, $5,000,000, to remain available until September 

22 30, 2011, for oversight and audit of programs, grants, and 

23 activities funded under this title and an additional 

24 $17,500,000 for such purposes, to remain available until 

25 September 30, 2011. 
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1 COOPERATIVE STATE RESEARCH, EDUCATION AND

2 ECONOMIC SERVICE

3 RESEARCH AND EDUCATION ACTIVITIES

4 For an additional amount for competitive grants au5 thorized at 7 U.S.C. 450(i)(b), $50,000,000, to remain 

6 available until September 30, 2010. 

7 FARM SERVICE AGENCY

8 AGRICULTURAL CREDIT INSURANCE FUND PROGRAM

9 ACCOUNT

10 For an additional amount for gross obligations for the 

11 principal amount of direct and guaranteed farm ownership 

12 (7 U.S.C 1922 et seq.) and operating (7 U.S.C. 1941 et seq.) 

13 loans, to be available from funds in the Agricultural Credit 

14 Insurance Fund Program Account, as follows: farm owner15 ship loans, $400,000,000 of which $100,000,000 shall be for 

16 unsubsidized guaranteed loans and $300,000,000 shall be 

17 for direct loans; and operating loans, $250,000,000 of which 

18 $50,000,000 shall be for unsubsidized guaranteed loans and 

19 $200,000,000 shall be for direct loans. 

20 For an additional amount for the cost of direct and 

21 guaranteed loans, including the cost of modifying loans, as 

22 defined in section 502 of the Congressional Budget Act of 

23 1974, to remain available until September 30, 2010, as fol24 lows: farm ownership loans, $17,530,000 of which $330,000 

25 shall be for unsubsidized guaranteed loans and $17,200,000 
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1 shall be for direct loans; and operating loans, $24,900,000 

2 of which $1,300,000 shall be for unsubsidized guaranteed 

3 loans and $23,600,000 shall be for direct loans. 

4 Funds appropriated by this Act to the Agricultural 

5 Credit Insurance Fund Program Account for farm owner6 ship, operating, and emergency direct loans and unsub7 sidized guaranteed loans may be transferred among these 

8 programs: Provided, That the Committees on Appropria9 tions of both Houses of Congress are notified at least 15 

10 days in advance of any transfer. 

11 NATURAL RESOURCES CONSERVATION SERVICE

12 WATERSHED AND FLOOD PREVENTION OPERATIONS

13 For an additional amount for ‘‘Watershed and Flood 

14 Prevention Operations’’, $275,000,000, to remain available 

15 until September 30, 2010. 

16 WATERSHED REHABILITATION PROGRAM

17 For an additional amount for the ‘‘Watershed Reha18 bilitation Program’’, $65,000,000, to remain available until 

19 September 30, 2010. 

20 RURAL DEVELOPMENT SALARIES AND EXPENSES

21 For an additional amount for ‘‘Rural Development, 

22 Salaries and Expenses’’, $80,000,000, to remain available 

23 until September 30, 2010. 
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1 RURAL HOUSING SERVICE

2 RURAL HOUSING INSURANCE PROGRAM ACCOUNT

3 For an additional amount for gross obligations for the 

4 principal amount of direct and guaranteed loans as author5 ized by title V of the Housing Act of 1949, to be available 

6 from funds in the Rural Housing Insurance Fund Program 

7 Account, as follows: $1,000,000,000 for section 502 direct 

8 loans; and $10,472,000,000 for section 502 unsubsidized 

9 guaranteed loans. 

10 For an additional amount for the cost of direct and 

11 guaranteed loans, including the cost of modifying loans, as 

12 defined in section 502 of the Congressional Budget Act of 

13 1974, to remain available until September 30, 2010, as fol14 lows: $67,000,000 for section 502 direct loans; and 

15 $133,000,000 for section 502 unsubsidized guaranteed 

16 loans. 

17 RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

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

19 loan guarantees, and grants for rural community facilities 

20 programs as authorized by section 306 and described in sec21 tion 381E(d)(1) of the Consolidated Farm and Rural Devel22 opment Act, $127,000,000, to remain available until Sep23 tember 30, 2010. 
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1 RURAL BUSINESS—COOPERATIVE SERVICE

2 RURAL BUSINESS PROGRAM ACCOUNT

3 For an additional amount for the cost of guaranteed 

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

5 and 310B(c) of the Consolidated Farm and Rural Develop6 ment Act (7 U.S.C. 1932), $150,000,000, to remain avail7 able until September 30, 2010. 

8 BIOREFINERY ASSISTANCE

9 For the cost of loan guarantees and grants, as author10 ized by section 9003 of the Farm Security and Rural In11 vestment Act of 2002 (7 U.S.C. 8103), $200,000,000, to re12 main available until September 30, 2010. 

13 RURAL ENERGY FOR AMERICA PROGRAM

14 For an additional amount for the cost of loan guaran15 tees and grants, as authorized by section 9007 of the Farm 

16 Security and Rural Investment Act of 2002 (7 U.S.C. 

17 8107), $50,000,000, to remain available until September 

18 30, 2010: Provided, That these funds may be used by tribes, 

19 local units of government, and schools in rural areas, as 

20 defined in section 343(a) of the Consolidated Farm and 

21 Rural Development Act (7 U.S.C. 1991(a)). 

22 RURAL UTILITIES SERVICE

23 RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

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

25 loan guarantees, and grants for the rural water, waste 
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1 water, waste disposal, and solid waste management pro2 grams authorized by sections 306, 306A, 306C, 306D, and 

3 310B and described in sections 306C(a)(2), 306D, and 

4 381E(d)(2) of the Consolidated Farm and Rural Develop5 ment Act, $1,375,000,000, to remain available until Sep6 tember 30, 2010. 

7 DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND

8 PROGRAM ACCOUNT

9 For an additional amount for direct loans and grants 

10 for distance learning and telemedicine services in rural 

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

12 $100,000,000, to remain available until September 30, 

13 2010. 

14 FOOD AND NUTRITION SERVICE

15 CHILD NUTRITION PROGRAMS

16 For additional amount for the Richard B. Russell Na17 tional School Lunch Act (42 U.S.C. 1751 et. seq.), except 

18 section 21, and the Child Nutrition Act of 1966 (42 U.S.C. 

19 1771 et. seq.), except sections 17 and 21, $100,000,000, to 

20 remain available until September 30, 2010, to carry out 

21 a grant program for National School Lunch Program 

22 equipment assistance: Provided, That such funds shall be 

23 provided to States administering a school lunch program 

24 through a formula based on the ratio that the total number 

25 of lunches served in the Program during the second pre-
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1 ceding fiscal year bears to the total number of such lunches 

2 served in all States in such second preceding fiscal year: 

3 Provided further, That of such funds, the Secretary may 

4 approve the reserve by States of up to $20,000,000 for nec5 essary enhancements to the State Distributing Agency’s 

6 commodity ordering and management system to achieve 

7 compatibility with the Department’s web-based supply 

8 chain management system: Provided further, That of the 

9 funds remaining, the State shall provide competitive grants 

10 to school food authorities based upon the need for equipment 

11 assistance in participating schools with priority given to 

12 schools in which not less than 50 percent of the students 

13 are eligible for free or reduced price meals under the Rich14 ard B. Russell National School Lunch Act and priority 

15 given to schools purchasing equipment for the purpose of 

16 offering more healthful foods and meals, in accordance with 

17 standards established by the Secretary. 

18 SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR

19 WOMEN, INFANTS, AND CHILDREN (WIC)

20 For an additional amount for the special supplemental 

21 nutrition program as authorized by section 17 of the Child 

22 Nutrition Act of 1966 (42 U.S.C. 1786), to remain available 

23 until September 30, 2010, $500,000,000, of which 

24 $380,000,000 shall be placed in reserve to be allocated as 

25 the Secretary deems necessary, notwithstanding section 
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1 17(i) of such Act, to support participation should cost or 

2 participation exceed budget estimates, and of which 

3 $120,000,000 shall be for the purposes specified in section 

4 17(h)(10)(B)(ii): Provided, That up to one percent of the 

5 funding provided for the purposes specified in section 

6 17(h)(10)(B)(ii) may be reserved by the Secretary for Fed7 eral administrative activities in support of those purposes. 

8 COMMODITY ASSISTANCE PROGRAM

9 For an additional amount for the ‘‘Commodity Assist10 ance Program’’, to remain available until September 30, 

11 2010, $150,000,000, which the Secretary shall use to pur12 chase a variety of commodities as authorized by the Com13 modity Credit Corporation or under section 32 of the Act 

14 entitled ‘‘An Act to amend the Agricultural Adjustment Act, 

15 and for other purposes’’, approved August 24, 1935 (7 

16 U.S.C. 612c): Provided, That the Secretary shall distribute 

17 the commodities to States for distribution in accordance 

18 with section 214 of the Emergency Food Assistance Act of 

19 1983 (Public Law 98–8; 7 U.S.C. 612c note): Provided fur20 ther, That of the funds made available, the Secretary may 

21 use up to $50,000,000 for costs associated with the distribu22 tion of commodities. 

23 GENERAL PROVISIONS—THIS TITLE 

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

25 available to the United States Department of Agriculture 
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1 for broadband direct loans and loan guarantees, as author2 ized under title VI of the Rural Electrification Act of 1936 

3 (7 U.S.C. 950bb) and for grants, shall be available for 

4 broadband infrastructure in any area of the United States 

5 notwithstanding title VI of the Rural Electrification Act of 

6 1936: Provided, That at least 75 percent of the area served 

7 by the projects receiving funds from such grants, loans, or 

8 loan guarantees is in a rural area without sufficient access 

9 to high speed broadband service to facilitate rural economic 

10 development, as determined by the Secretary: Provided fur11 ther, That priority for awarding funds made available 

12 under this paragraph shall be given to projects that provide 

13 service to the highest proportion of rural residents that do 

14 not have sufficient access to broadband service: Provided 

15 further, That priority for awarding such funds shall be 

16 given to project applications that demonstrate that, if the 

17 application is approved, all project elements will be fully 

18 funded: Provided further, That priority for awarding such 

19 funds shall be given to activities that can commence 

20 promptly following approval: Provided further, That the 

21 Department shall submit a report on planned spending and 

22 actual obligations describing the use of these funds not later 

23 than 90 days after the date of enactment of this Act, and 

24 quarterly thereafter until all funds are obligated, to the 
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1 Committees on Appropriations of the House of Representa2 tives and the Senate. 

3 SEC. 102. NUTRITION FOR ECONOMIC RECOVERY. 

4 (a) MAXIMUM BENEFIT INCREASES.— 

5 (1) ECONOMIC RECOVERY 1-MONTH BEGINNING

6 STIMULUS PAYMENT.—For the first month that begins 

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

8 this Act, the Secretary of Agriculture (referred to in 

9 this section as the ‘‘Secretary’’) shall increase the cost 

10 of the thrifty food plan for purposes of section 8(a) 

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

12 2017(a)) by 85 percent. 

13 (2) REMAINDER OF FISCAL YEAR 2009.—Begin14 ning with the second month that begins not less than 

15 25 days after the date of enactment of this Act, and 

16 for each subsequent month through the month ending 

17 September 30, 2009, the Secretary shall increase the 

18 cost of the thrifty food plan for purposes of section 

19 8(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 

20 2017(a)) by 12 percent. 

21 (3) SUBSEQUENT INCREASE FOR FISCAL YEAR

22 2010.—Beginning on October 1, 2009, and for each 

23 subsequent month through the month ending Sep24 tember 30, 2010, the Secretary shall increase the cost 

25 of the thrifty food plan for purposes of section 8(a) 
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1 of the Food and Nutrition Act of 2008 (7 U.S.C. 

2 2017(a)) by an amount equal to 12 percent, less the 

3 percentage by which the Secretary determines the 

4 thrifty food plan would otherwise be adjusted on Octo5 ber 1, 2009, as required under section 3(u) of that Act 

6 (7 U.S.C. 2012(u)), if the percentage is less than 12 

7 percent. 

8 (4) SUBSEQUENT INCREASE FOR FISCAL YEAR

9 2011.—Beginning on October 1, 2010, and for each 

10 subsequent month through the month ending Sep11 tember 30, 2011, the Secretary shall increase the cost 

12 of the thrifty food plan for purposes of section 8(a) 

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

14 2017(a)) by an amount equal to 12 percent, less the 

15 sum of the percentages by which the Secretary deter16 mines the thrifty food plan would otherwise be ad17 justed on October 1, 2009 and October 1, 2010, as re18 quired under section 3(u) of that Act (7 U.S.C. 

19 2012(u)), if the sum of such percentages is less than 

20 12 percent. 

21 (5) TERMINATION OF EFFECTIVENESS.—Effective 

22 beginning October 1, 2011, the authority provided by 

23 this subsection terminates and has no effect. 

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

25 the Secretary shall— 
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1 (1) consider the benefit increases described in 

2 subsection (a) to be a mass change; 

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

4 households of the changes in benefits; 

5 (3) consider section 16(c)(3)(A) of the Food and 

6 Nutrition Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to 

7 apply to any errors in the implementation of this sec8 tion, without regard to the 120-day limit described in 

9 section 16(c)(3)(A) of that Act; 

10 (4) disregard the additional amount of benefits 

11 that a household receives as a result of this section in 

12 determining the amount of overissuances under sec13 tion 13 of the Food and Nutrition Act of 2008 (7 

14 U.S.C. 2022) and the hours of participation in a pro15 gram under section 6(d), 20, or 26 of that Act (7 

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

17 (5) set the tolerance level for excluding small er18 rors for the purposes of section 16(c) of the Food and 

19 Nutrition Act of 2008 (7 U.S.C. 2025(c)) at $50 for 

20 the period that the benefit increase under subsection 

21 (a) is in effect. 

22 (c) ADMINISTRATIVE EXPENSES.— 

23 (1) IN GENERAL.—For the costs of State admin24 istrative expenses associated with carrying out this 

25 section and administering the supplemental nutrition 
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1 assistance program established under the Food and 

2 Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) (re3 ferred to in this section as the ‘‘supplemental nutri4 tion assistance program’’) during a period of rising 

5 program caseloads, and for the expenses of the Sec6 retary under paragraph (6), the Secretary shall make 

7 available $150,000,000 for each of fiscal years 2009 

8 and 2010, to remain available through September 30, 

9 2010. 

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

11 than 60 days after the date of enactment of this Act, 

12 the Secretary shall make available to States amounts 

13 for fiscal year 2009 under paragraph (1). 

14 (3) ALLOCATION OF FUNDS.—Except as provided 

15 in paragraph (6), funds described in paragraph (1) 

16 shall be made available to States that meet the re17 quirements of paragraph (5) as grants to State agen18 cies for each fiscal year as follows: 

19 (A) 75 percent of the amounts available for 

20 each fiscal year shall be allocated to States based 

21 on the share of each State of households that par22 ticipate in the supplemental nutrition assistance 

23 program as reported to the Department of Agri24 culture for the most recent 12-month period for 

25 which data are available, adjusted by the Sec-
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1 retary (in the discretion of the Secretary) for 

2 participation in disaster programs under section 

3 5(h) of the Food and Nutrition Act of 2008 (7 

4 U.S.C. 2014(h)); and 

5 (B) 25 percent of the amounts available for 

6 each fiscal year shall be allocated to States based 

7 on the increase in the number of households that 

8 participate in the supplemental nutrition assist9 ance program as reported to the Department of 

10 Agriculture over the most recent 12-month period 

11 for which data are available, adjusted by the 

12 Secretary (in the discretion of the Secretary) for 

13 participation in disaster programs under section 

14 5(h) of the Food and Nutrition Act of 2008 (7 

15 U.S.C. 2014(h)). 

16 (4) REDISTRIBUTION.—The Secretary shall de17 termine an appropriate procedure for redistribution 

18 of amounts allocated to States that would otherwise be 

19 provided allocations under paragraph (3) for a fiscal 

20 year but that do not meet the requirements of para21 graph (5). 

22 (5) MAINTENANCE OF EFFORT.— 

23 (A) DEFINITION OF SPECIFIED STATE AD24 MINISTRATIVE COSTS.—In this paragraph: 
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1 (i) IN GENERAL.—The term ‘‘specified 

2 State administrative costs’’ includes all 

3 State administrative costs under the supple4 mental nutrition assistance program. 

5 (ii) EXCLUSIONS.—The term ‘‘specified 

6 State administrative costs’’ does not in7 clude— 

8 (I) the costs of employment and 

9 training programs under section 6(d), 

10 20, or 26 of the Food and Nutrition 

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

12 2035); 

13 (II) the costs of nutrition edu14 cation under section 11(f) of that Act 

15 (7 U.S.C. 2020(f)); and 

16 (III) any other costs the Secretary 

17 determines should be excluded. 

18 (B) REQUIREMENT.—The Secretary shall 

19 make funds under this subsection available only 

20 to States that, as determined by the Secretary, 

21 maintain State expenditures on specified State 

22 administrative costs. 

23 (6) MONITORING AND EVALUATION.—Of the 

24 amounts made available under paragraph (1), the 

25 Secretary may retain up to $5,000,000 for the costs 
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1 incurred by the Secretary in monitoring the integrity 

2 and evaluating the effects of the payments made 

3 under this section. 

4 (d) FOOD DISTRIBUTION PROGRAM ON INDIAN RES5 ERVATIONS.—For the costs of administrative expenses asso6 ciated with the food distribution program on Indian res7 ervations established under section 4(b) of the Food and Nu8 trition Act of 2008 (7 U.S.C. 2013(b)), the Secretary shall 

9 make available $5,000,000, to remain available until Sep10 tember 30, 2010. 

11 (e) CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO

12 AND AMERICAN SAMOA.— 

13 (1) FISCAL YEAR 2009.— 

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

15 Secretary shall increase by 12 percent the 

16 amount available for nutrition assistance for eli17 gible households under the consolidated block 

18 grants for the Commonwealth of Puerto Rico and 

19 American Samoa under section 19 of the Food 

20 and Nutrition Act of 2008 (7 U.S.C. 2028). 

21 (B) AVAILABILITY OF FUNDS.—Funds made 

22 available under subparagraph (A) shall remain 

23 available through September 30, 2010. 

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

25 Secretary shall increase the amount available for nu-
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1 trition assistance for eligible households under the 

2 consolidated block grants for the Commonwealth of 

3 Puerto Rico and American Samoa under section 19 

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

5 2028) by 12 percent, less the percentage by which the 

6 Secretary determines the consolidated block grants 

7 would otherwise be adjusted on October 1, 2009, as re8 quired by section 19(a)(2)(A)(ii) of that Act (7 U.S.C. 

9 2028(a)(2)(A)(ii)), if the percentage is less than 12 

10 percent. 

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

12 Secretary shall increase the amount available for nu13 trition assistance for eligible households under the 

14 consolidated block grants for the Commonwealth of 

15 Puerto Rico and American Samoa under section 19 

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

17 2028) by 12 percent, less the sum of the percentages 

18 by which the Secretary determines the consolidated 

19 block grants would otherwise be adjusted on October 

20 1, 2009, and October 1, 2010, as required by section 

21 19(a)(2)(A)(ii) of that Act (7 U.S.C. 

22 2028(a)(2)(A)(ii)), if the sum of the percentages is 

23 less than 12 percent. 

24 (f) TREATMENT OF JOBLESS WORKERS.— 
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1 (1) REMAINDER OF FISCAL YEAR 2009 THROUGH

2 FISCAL YEAR 2011.—Beginning with the first month 

3 that begins not less than 25 days after the date of en4 actment of this Act and for each subsequent month 

5 through September 30, 2011, eligibility for supple6 mental nutrition assistance program benefits shall not 

7 be limited under section 6(o)(2) of the Food and Nu8 trition Act of 2008 unless an individual does not 

9 comply with the requirements of a program offered by 

10 the State agency that meets the standards of subpara11 graphs (B) or (C) of that paragraph. 

12 (2) FISCAL YEAR 2012 AND THEREAFTER.—Be13 ginning on October 1, 2011, for the purposes of sec14 tion 6(o) of the Food and Nutrition Act of 2008 (7 

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

16 period during which an individual received benefits 

17 under the supplemental nutrition assistance program 

18 prior to October 1, 2011. 

19 (g) FUNDING.—There are appropriated to the Sec20 retary out of funds of the Treasury not otherwise appro21 priated such sums as are necessary to carry out this section. 

22 SEC. 103. AGRICULTURAL DISASTER ASSISTANCE

23 TRANSITION. (a) FEDERAL CROP INSURANCE ACT.—Sec24 tion 531(g) of the Federal Crop Insurance Act (7 U.S.C. 

25 1531(g)) is amended by adding at the end the following: 
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1 ‘‘(7) 2008 TRANSITION ASSISTANCE.— 

2 ‘‘(A) IN GENERAL.—Eligible producers on a 

3 farm described in subparagraph (A) of para4 graph (4) that failed to timely pay the appro5 priate fee described in that subparagraph shall 

6 be eligible for assistance under this section in ac7 cordance with subparagraph (B) if the eligible 

8 producers on the farm— 

9 ‘‘(i) pay the appropriate fee described 

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

11 after the date of enactment of this para12 graph; and 

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

14 commodity of the eligible producers on the 

15 farm, excluding grazing land, agree to ob16 tain a policy or plan of insurance under 

17 subtitle A (excluding a crop insurance pilot 

18 program under that subtitle) for the next 

19 insurance year for which crop insurance is 

20 available to the eligible producers on the 

21 farm at a level of coverage equal to 70 per22 cent or more of the recorded or appraised 

23 average yield indemnified at 100 percent of 

24 the expected market price, or an equivalent 

25 coverage; and 
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1 ‘‘(II) in the case of each noninsurable 

2 commodity of the eligible producers on the 

3 farm, agree to file the required paperwork, 

4 and pay the administrative fee by the ap5 plicable State filing deadline, for the non6 insured crop assistance program for the 

7 2009 crop year. 

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

9 producers on a farm that meet the requirements 

10 of subparagraph (A) shall be eligible to receive 

11 assistance under this section as if the eligible 

12 producers on the farm— 

13 ‘‘(i) in the case of each insurable com14 modity of the eligible producers on the farm, 

15 had obtained a policy or plan of insurance 

16 for the 2008 crop year at a level of coverage 

17 not to exceed 70 percent or more of the re18 corded or appraised average yield indem19 nified at 100 percent of the expected market 

20 price, or an equivalent coverage; and 

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

22 commodity of the eligible producers on the 

23 farm, had filed the required paperwork, and 

24 paid the administrative fee by the applica25 ble State filing deadline, for the noninsured 
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1 crop assistance program for the 2008 crop 

2 year, except that in determining yield 

3 under that program, the Secretary shall use 

4 a percentage that is 70 percent. 

5 ‘‘(C) EQUITABLE RELIEF.—Except as pro6 vided in subparagraph (D), eligible producers on 

7 a farm that met the requirements of paragraph 

8 (1) before the deadline described in paragraph 

9 (4)(A) and received, or are eligible to receive, a 

10 disaster assistance payment under this section 

11 for a production loss during the 2008 crop year 

12 shall be eligible to receive an additional amount 

13 equal to the greater of— 

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

15 calculated under subparagraph (B) if the el16 igible producers on the farm had paid the 

17 appropriate fee under that subparagraph; 

18 or 

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

20 calculated under subparagraph (A) of sub21 section (b)(3) if— 

22 ‘‘(I) in clause (i) of that subpara23 graph, ‘120 percent’ is substituted for 

24 ‘115 percent’; and 
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1 ‘‘(II) in clause (ii) of that sub2 paragraph, ‘125’ is substituted for ‘120 

3 percent’. 

4 ‘‘(D) LIMITATION.—For amounts made 

5 available under this paragraph, the Secretary 

6 may make such adjustments as are necessary to 

7 ensure that no producer receives a payment 

8 under this paragraph for an amount in excess of 

9 the assistance received by a similarly situated 

10 producer that had purchased the same or higher 

11 level of crop insurance prior to the date of enact12 ment of this paragraph. 

13 ‘‘(E) AUTHORITY OF THE SECRETARY.—The 

14 Secretary may provide such additional assist15 ance as the Secretary considers appropriate to 

16 provide equitable treatment for eligible producers 

17 on a farm that suffered production losses in the 

18 2008 crop year that result in multiyear produc19 tion losses, as determined by the Secretary. 

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

21 any other provision of this section, the Secretary 

22 may provide assistance under this section to eli23 gible producers on a farm that— 
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1 ‘‘(i) suffered a production loss due to a 

2 natural cause during the 2008 crop year; 

3 and 

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

5 ‘‘(I)(aa) except as provided in 

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

7 plan of insurance under subtitle A; or 

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

9 agreement because 1 or more farming 

10 practices, which the Secretary has de11 termined are good farming practices, of 

12 the eligible producers on the farm dif13 fer significantly from the farming 

14 practices used by producers of the same 

15 crop in other regions of the United 

16 States; and 

17 ‘‘(II) are not eligible for the non18 insured crop disaster assistance pro19 gram established by section 196 of the 

20 Federal Agriculture Improvement and 

21 Reform Act of 1996 (7 U.S.C. 7333).’’. 

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

23 Act of 1974 (19 U.S.C. 2497(g)) is amended by adding at 

24 the end the following: 

25 ‘‘(7) 2008 TRANSITION ASSISTANCE.— 
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1 ‘‘(A) IN GENERAL.—Eligible producers on a 

2 farm described in subparagraph (A) of para3 graph (4) that failed to timely pay the appro4 priate fee described in that subparagraph shall 

5 be eligible for assistance under this section in ac6 cordance with subparagraph (B) if the eligible 

7 producers on the farm— 

8 ‘‘(i) pay the appropriate fee described 

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

10 after the date of enactment of this para11 graph; and 

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

13 commodity of the eligible producers on the 

14 farm, excluding grazing land, agree to ob15 tain a policy or plan of insurance under the 

16 Federal Crop Insurance Act (7 U.S.C. 1501 

17 et seq.) (excluding a crop insurance pilot 

18 program under that Act) for the next insur19 ance year for which crop insurance is avail20 able to the eligible producers on the farm at 

21 a level of coverage equal to 70 percent or 

22 more of the recorded or appraised average 

23 yield indemnified at 100 percent of the ex24 pected market price, or an equivalent cov25 erage; and 
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1 ‘‘(II) in the case of each noninsurable 

2 commodity of the eligible producers on the 

3 farm, agree to file the required paperwork, 

4 and pay the administrative fee by the ap5 plicable State filing deadline, for the non6 insured crop assistance program for the 

7 2009 crop year. 

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

9 producers on a farm that meet the requirements 

10 of subparagraph (A) shall be eligible to receive 

11 assistance under this section as if the eligible 

12 producers on the farm— 

13 ‘‘(i) in the case of each insurable com14 modity of the eligible producers on the farm, 

15 had obtained a policy or plan of insurance 

16 for the 2008 crop year at a level of coverage 

17 not to exceed 70 percent or more of the re18 corded or appraised average yield indem19 nified at 100 percent of the expected market 

20 price, or an equivalent coverage; and 

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

22 commodity of the eligible producers on the 

23 farm, had filed the required paperwork, and 

24 paid the administrative fee by the applica25 ble State filing deadline, for the noninsured 
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1 crop assistance program for the 2008 crop 

2 year, except that in determining yield 

3 under that program, the Secretary shall use 

4 a percentage that is 70 percent. 

5 ‘‘(C) EQUITABLE RELIEF.—Except as pro6 vided in subparagraph (D), eligible producers on 

7 a farm that met the requirements of paragraph 

8 (1) before the deadline described in paragraph 

9 (4)(A) and received, or are eligible to receive, a 

10 disaster assistance payment under this section 

11 for a production loss during the 2008 crop year 

12 shall be eligible to receive an additional amount 

13 equal to the greater of— 

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

15 calculated under subparagraph (B) if the el16 igible producers on the farm had paid the 

17 appropriate fee under that subparagraph; 

18 or 

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

20 calculated under subparagraph (A) of sub21 section (b)(3) if— 

22 ‘‘(I) in clause (i) of that subpara23 graph, ‘120 percent’ is substituted for 

24 ‘115 percent’; and 
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1 ‘‘(II) in clause (ii) of that sub2 paragraph, ‘125’ is substituted for ‘120 

3 percent’. 

4 ‘‘(D) LIMITATION.—For amounts made 

5 available under this paragraph, the Secretary 

6 may make such adjustments as are necessary to 

7 ensure that no producer receives a payment 

8 under this paragraph for an amount in excess of 

9 the assistance received by a similarly situated 

10 producer that had purchased the same or higher 

11 level of crop insurance prior to the date of enact12 ment of this paragraph. 

13 ‘‘(E) AUTHORITY OF THE SECRETARY.—The 

14 Secretary may provide such additional assist15 ance as the Secretary considers appropriate to 

16 provide equitable treatment for eligible producers 

17 on a farm that suffered production losses in the 

18 2008 crop year that result in multiyear produc19 tion losses, as determined by the Secretary. 

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

21 any other provision of this section, the Secretary 

22 may provide assistance under this section to eli23 gible producers on a farm that— 
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1 ‘‘(i) suffered a production loss due to a 

2 natural cause during the 2008 crop year; 

3 and 

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

5 ‘‘(I)(aa) except as provided in 

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

7 plan of insurance under subtitle A; or 

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

9 agreement because 1 or more farming 

10 practices, which the Secretary has de11 termined are good farming practices, of 

12 the eligible producers on the farm dif13 fer significantly from the farming 

14 practices used by producers of the same 

15 crop in other regions of the United 

16 States; and 

17 ‘‘(II) are not eligible for the non18 insured crop disaster assistance pro19 gram established by section 196 of the 

20 Federal Agriculture Improvement and 

21 Reform Act of 1996 (7 U.S.C. 7333).’’. 

22 (c) EMERGENCY LOANS.— 

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

24 direct emergency loans under section 321 of the Con-
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1 solidated Farm and Rural Development Act (7 U.S.C. 

2 1961), $200,000,000. 

3 (2) DIRECT EMERGENCY LOANS.—For the cost of 

4 direct emergency loans, including the cost of modi5 fying loans, as defined in section 502 of the Congres6 sional Budget Act of 1974 (2 U.S.C. 661a), 

7 $28,440,000, to remain available until September 30, 

8 2010. 

9 (d) 2008 AQUACULTURE ASSISTANCE.— 

10 (1) DEFINITIONS.—In this subsection: 

11 (A) ELIGIBLE AQUACULTURE PRODUCER.— 

12 The term ‘‘eligible aquaculture producer’’ means 

13 an aquaculture producer that during the 2008 

14 calendar year, as determined by the Secretary— 

15 (i) produced an aquaculture species for 

16 which feed costs represented a substantial 

17 percentage of the input costs of the aqua18 culture operation; and 

19 (ii) experienced a substantial price in20 crease of feed costs above the previous 5-year 

21 average. 

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

23 means the Secretary of Agriculture. 

24 (2) GRANT PROGRAM.— 
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1 (A) IN GENERAL.—Of the funds of the Com2 modity Credit Corporation, the Secretary shall 

3 use not more than $50,000,000, to remain avail4 able until September 30, 2010, to carry out a 

5 program of grants to States to assist eligible 

6 aquaculture producers for losses associated with 

7 high feed input costs during the 2008 calendar 

8 year. 

9 (B) NOTIFICATION.—Not later than 60 days 

10 after the date of enactment of this Act, the Sec11 retary shall notify the State department of agri12 culture (or similar entity) in each State of the 

13 availability of funds to assist eligible aqua14 culture producers, including such terms as deter15 mined by the Secretary to be necessary for the 

16 equitable treatment of eligible aquaculture pro17 ducers. 

18 (C) PROVISION OF GRANTS.— 

19 (i) IN GENERAL.—The Secretary shall 

20 make grants to States under this subsection 

21 on a pro rata basis based on the amount of 

22 aquaculture feed used in each State during 

23 the 2007 calendar year, as determined by 

24 the Secretary. 
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1 (ii) TIMING.—Not later than 120 days 

2 after the date of enactment of this Act, the 

3 Secretary shall make grants to States to 

4 provide assistance under this subsection. 

5 (D) REQUIREMENTS.—The Secretary shall 

6 make grants under this subsection only to States 

7 that demonstrate to the satisfaction of the Sec8 retary that the State will— 

9 (i) use grant funds to assist eligible 

10 aquaculture producers; 

11 (ii) provide assistance to eligible aqua12 culture producers not later than 60 days 

13 after the date on which the State receives 

14 grant funds; and 

15 (iii) not later than 30 days after the 

16 date on which the State provides assistance 

17 to eligible aquaculture producers, submit to 

18 the Secretary a report that describes— 

19 (I) the manner in which the State 

20 provided assistance; 

21 (II) the amounts of assistance 

22 provided per species of aquaculture; 

23 and 
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1 (III) the process by which the 

2 State determined the levels of assist3 ance to eligible aquaculture producers. 

4 (3) REDUCTION IN PAYMENTS.—An eligible 

5 aquaculture producer that receives assistance under 

6 this subsection shall not be eligible to receive any 

7 other assistance under the supplemental agricultural 

8 disaster assistance program established under section 

9 531 of the Federal Crop Insurance Act (7 U.S.C. 

10 1531) and section 901 of the Trade Act of 1974 (19 

11 U.S.C. 2497) for any losses in 2008 relating to the 

12 same species of aquaculture. 

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

14 days after the date of enactment of this Act, the Sec15 retary shall submit to the appropriate committees of 

16 Congress a report that— 

17 (A) describes in detail the manner in which 

18 this subsection has been carried out; and 

19 (B) includes the information reported to the 

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

21 (e) ADMINISTRATION.—There is hereby appropriated 

22 $54,000,000 to carry out this section. 

23 SEC. 104. (a) Hereafter, in this section, the term ‘‘non24 ambulatory disabled cattle’’ means cattle, other than cattle 

25 that are less than 5 months old or weigh less than 500 
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1 pounds, subject to inspection under section 3(b) of the Fed2 eral Meat Inspection Act (21 U.S.C. 603(b)) that cannot 

3 rise from a recumbent position or walk, including cattle 

4 with a broken appendage, severed tendon or ligament, nerve 

5 paralysis, fractured vertebral column, or a metabolic condi6 tion. 

7 (b) Hereafter, none of the funds made available under 

8 this or any other Act may be used to pay the salaries or 

9 expenses of any personnel of the Food Safety and Inspection 

10 Service to pass through inspection any nonambulatory dis11 abled cattle for use as human food, regardless of the reason 

12 for the nonambulatory status of the cattle or the time at 

13 which the cattle became nonambulatory. 

14 SEC. 105. STATE AND LOCAL GOVERNMENTS. Section 

15 1001(f)(6)(A) of the Food Security Act of 1985 (7 U.S.C. 

16 1308(f)(6)(A)) is amended by inserting ‘‘(other than the 

17 conservation reserve program established under subchapter 

18 B of chapter 1 of subtitle D of title XII of this Act)’’ before 

19 the period at the end. 

20 SEC. 106. Except for title I of the Food, Conservation, 

21 and Energy Act of 2008 (Public Law 110–246), Commodity 

22 Credit Corporation funds provided in that Act shall be 

23 available for administrative expenses, including technical 

24 assistance, without regard to the limitation in 15 U.S.C. 

25 714i. 
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1 TITLE II—COMMERCE, JUSTICE, SCIENCE, AND 

2 RELATED AGENCIES 

3 DEPARTMENT OF COMMERCE 

4 BUREAU OF INDUSTRY AND SECURITY

5 OPERATIONS AND ADMINISTRATION

6 For an additional amount for ‘‘Operations and Ad7 ministration’’, $20,000,000, to remain available until Sep8 tember 30, 2010. 

9 ECONOMIC DEVELOPMENT ADMINISTRATION

10 ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

11 For an additional amount for ‘‘Economic Development 

12 Assistance Programs’’, $150,000,000, to remain available 

13 until September 30, 2010: Provided, That $50,000,000 shall 

14 be for economic adjustment assistance as authorized by sec15 tion 209 of the Public Works and Economic Development 

16 Act of 1965, as amended (42 U.S.C. 3149): Provided fur17 ther, That in allocating the funds provided in the previous 

18 proviso, the Secretary of Commerce shall give priority con19 sideration to areas of the Nation that have experienced sud20 den and severe economic dislocation and job loss due to cor21 porate restructuring. 
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1 BUREAU OF THE CENSUS

2 PERIODIC CENSUSES AND PROGRAMS

3 For an additional amount for ‘‘Periodic Censuses and 

4 Programs’’, $1,000,000,000, to remain available until Sep5 tember 30, 2010. 

6 NATIONAL TELECOMMUNICATIONS AND INFORMATION

7 ADMINISTRATION

8 BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

9 For an amount for ‘‘Broadband Technology Opportu10 nities Program’’, $7,000,000,000, to remain available until 

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

12 under this heading, $6,650,000,000 shall be expended pur13 suant to section 201 of this Act, of which: not less than 

14 $200,000,000 shall be available for competitive grants for 

15 expanding public computer center capacity, including at 

16 community colleges and public libraries; not less than 

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

18 innovative programs to encourage sustainable adoption of 

19 broadband service; and $10,000,000 shall be transferred to 

20 ‘‘Department of Commerce, Office of Inspector General’’ for 

21 the purposes of audits and oversight of funds provided 

22 under this heading and such funds shall remain available 

23 until expended: Provided further, That 50 percent of the 

24 funds provided in the previous proviso shall be used to sup25 port projects in rural communities, which in part may be 
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1 transferred to the Department of Agriculture for adminis2 tration through the Rural Utilities Service if deemed nec3 essary and appropriate by the Secretary of Commerce, in 

4 consultation with the Secretary of Agriculture, and only if 

5 the Committees on Appropriations of the House and the 

6 Senate are notified not less than 15 days in advance of the 

7 transfer of such funds: Provided further, That of the funds 

8 provided under this heading, up to $350,000,000 may be 

9 expended pursuant to Public Law 110–385 (47 U.S.C. 1301 

10 note) and for the purposes of developing and maintaining 

11 a broadband inventory map pursuant to section 201 of this 

12 Act: Provided further, That of the funds provided under this 

13 heading, amounts deemed necessary and appropriate by the 

14 Secretary of Commerce, in consultation with the Federal 

15 Communications Commission (FCC), may be transferred to 

16 the FCC for the purposes of developing a national 

17 broadband plan or for carrying out any other FCC respon18 sibilities pursuant to section 201 of this Act, and only if 

19 the Committees on Appropriations of the House and the 

20 Senate are notified not less than 15 days in advance of the 

21 transfer of such funds: Provided further, That not more 

22 than 3 percent of funds provided under this heading may 

23 be used for administrative costs, and this limitation shall 

24 apply to funds which may be transferred to the Department 

25 of Agriculture and the FCC. 
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1 DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM

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

3 Program’’, $650,000,000, for additional coupons and re4 lated activities under the program implemented under sec5 tion 3005 of the Digital Television Transition and Public 

6 Safety Act of 2005, to remain available until September 

7 30, 2010: Provided, That of the amounts provided under 

8 this heading, $90,000,000 may be for education and out9 reach, including grants to organizations for programs to 

10 educate vulnerable populations, including senior citizens, 

11 minority communities, people with disabilities, low-income 

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

13 transition and to provide one-on-one assistance to vulner14 able populations, including help with converter box instal15 lation: Provided further, That the amounts provided in the 

16 previous proviso may be transferred to the Federal Commu17 nications Commission (Commission) if deemed necessary 

18 and appropriate by the Secretary of Commerce in consulta19 tion with the Commission, and only if the Committees on 

20 Appropriations of the House and the Senate are notified 

21 not less than 5 days in advance of transfer of such funds: 

22 Provided further, That $2,000,000 of funds provided under 

23 this heading shall be transferred to ‘‘Department of Com24 merce, Office of Inspector General’’ for audits and oversight 

25 of funds provided under this heading. 
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1 NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

2 SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES

3 For an additional amount for ‘‘Scientific and Tech4 nical Research and Services’’, $168,000,000, to remain 

5 available until September 30, 2010. 

6 CONSTRUCTION OF RESEARCH FACILITIES

7 For an additional amount for ‘‘Construction of Re8 search Facilities’’, $307,000,000, to remain available until 

9 September 30, 2010. 

10 NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

11 OPERATIONS, RESEARCH, AND FACILITIES

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

13 and Facilities’’, $377,000,000, to remain available until 

14 September 30, 2010. 

15 PROCUREMENT, ACQUISITION AND CONSTRUCTION

16 For an additional amount for ‘‘Procurement, Acquisi17 tion and Construction’’, $645,000,000, to remain available 

18 until September 30, 2010. 

19 OFFICE OF INSPECTOR GENERAL

20 For an additional amount for ‘‘Office of Inspector 

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

22 30, 2012. 
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1 DEPARTMENT OF JUSTICE 

2 GENERAL ADMINISTRATION

3 TACTICAL LAW ENFORCEMENT WIRELESS COMMUNICATIONS

4 For an additional amount for ‘‘Tactical Law Enforce5 ment Wireless Communications’’, $100,000,000 for the costs 

6 of developing and implementing a nationwide Integrated 

7 Wireless network supporting Federal law enforcement, to re8 main available until September 30, 2010. 

9 DETENTION TRUSTEE

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

11 $100,000,000, to remain available until September 30, 

12 2010. 

13 OFFICE OF INSPECTOR GENERAL

14 For an additional amount for ‘‘Office of Inspector 

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

16 30, 2011. 

17 UNITED STATES MARSHALS SERVICE

18 SALARIES AND EXPENSES

19 For an additional amount for ‘‘Salaries and Ex20 penses’’, $50,000,000, to remain available until September 

21 30, 2010. 

22 CONSTRUCTION

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

24 $100,000,000, to remain available until September 30, 

25 2010. 
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1 FEDERAL BUREAU OF INVESTIGATION

2 SALARIES AND EXPENSES

3 For an additional amount for ‘‘Salaries and Ex4 penses’’, $75,000,000, to remain available until September 

5 30, 2010. 

6 CONSTRUCTION

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

8 $300,000,000, to remain available until September 30, 

9 2010. 

10 FEDERAL PRISON SYSTEM

11 BUILDINGS AND FACILITIES

12 For an additional amount for ‘‘Federal Prison Sys13 tem, Buildings and Facilities’’, $800,000,000, to remain 

14 available until September 30, 2010. 

15 STATE AND LOCAL LAW ENFORCEMENT ACTIVITIES

16 OFFICE ON VIOLENCE AGAINST WOMEN

17 VIOLENCE AGAINST WOMEN PREVENTION AND

18 PROSECUTION PROGRAMS

19 For an additional amount for ‘‘Violence Against 

20 Women Prevention and Prosecution Programs’’, 

21 $300,000,000 for grants to combat violence against women, 

22 as authorized by part T of the Omnibus Crime Control and 

23 Safe Streets Act of 1968 (42 U.S.C. 3711 et seq.): Provided, 

24 That, $50,000,000 shall be transitional housing assistance 

25 grants for victims of domestic violence, stalking or sexual 
43 

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1 assault as authorized by section 40299 of the Violent Crime 

2 Control and Law Enforcement Act of 1994 (Public Law 

3 103–322). 

4 OFFICE OF JUSTICE PROGRAMS

5 STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

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

7 Enforcement Assistance’’, $1,200,000,000 for the Edward 

8 Byrne Memorial Justice Assistance Grant program as au9 thorized by subpart 1 of part E of title I of the Omnibus 

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

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

12 Rico under section 505(g), of the 1968 Act, shall not apply 

13 for purposes of this Act), to remain available until Sep14 tember 30, 2010. 

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

16 Enforcement Assistance’’, $300,000,000 for competitive 

17 grants to improve the functioning of the criminal justice 

18 system, to assist victims of crime (other than compensa19 tion), and youth mentoring grants, to remain available 

20 until September 30, 2010. 

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

22 Enforcement Assistance’’, $90,000,000, to remain available 

23 until September 30, 2010, for competitive grants to provide 

24 assistance and equipment to local law enforcement along 

25 the Southern border and in High-Intensity Drug Traf-
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1 ficking Areas to combat criminal narcotics activity stem2 ming from the Southern border, of which $10,000,000 shall 

3 be transferred to ‘‘Bureau of Alcohol, Tobacco, Firearms 

4 and Explosives, Salaries and Expenses’’ for the ATF Project 

5 Gunrunner. 

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

7 Enforcement Assistance’’, $300,000,000, to remain avail8 able until September 30, 2010, for assistance to Indian 

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

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

11 (1) $250,000,000 shall be available for grants 

12 under section 20109 of subtitle A of title II of the Vio13 lent Crime Control and Law Enforcement Act of 1994 

14 (Public Law 103–322); 

15 (2) $25,000,000 shall be available for the Tribal 

16 Courts Initiative; and 

17 (3) $25,000,000 shall be available for tribal alco18 hol and substance abuse drug reduction assistance 

19 grants. 

20 For an additional amount for ‘‘State and Local Law En21 forcement Assistance’’, $100,000,000, to remain available 

22 until September 30, 2010, to be distributed by the Office 

23 for Victims of Crime in accordance with section 1402(d)(4) 

24 of the Victims of Crime Act of 1984 (Public Law 98–473). 
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1 For an additional amount for ‘‘State and Local Law 

2 Enforcement Assistance’’, $150,000,000, to remain avail3 able until September 30, 2010, for assistance to law enforce4 ment in rural areas, to prevent and combat crime, espe5 cially drug-related crime. 

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

7 Enforcement Assistance’’, $50,000,000, to remain available 

8 until September 30, 2010, for Internet Crimes Against Chil9 dren (ICAC) initiatives. 

10 COMMUNITY ORIENTED POLICING SERVICES

11 For an additional amount for ‘‘Community Oriented 

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

13 I of the 1968 Omnibus Crime Control and Safe Streets Act 

14 (42 U.S.C. 3796dd) for hiring and rehiring of additional 

15 career law enforcement officers under part Q of such title, 

16 and civilian public safety personnel, notwithstanding sub17 section (i) of such section and notwithstanding 42 U.S.C. 

18 3796dd–3(c), $1,000,000,000, to remain available until 

19 September 30, 2010. 

20 SALARIES AND EXPENSES

21 For an additional amount, not elsewhere specified in 

22 this title, for management and administration and over23 sight of programs within the Office on Violence Against 

24 Women, the Office of Justice Programs, and the Community 
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1 Oriented Policing Services Office, $10,000,000, to remain 

2 available until September 30, 2010. 

3 SCIENCE 

4 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

5 SCIENCE

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

7 $450,000,000, to remain available until September 30, 

8 2010. 

9 AERONAUTICS

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

11 $200,000,000, to remain available until September 30, 

12 2010. 

13 EXPLORATION

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

15 $450,000,000, to remain available until September 30, 

16 2010. 

17 CROSS AGENCY SUPPORT

18 For an additional amount for ‘‘Cross Agency Sup19 port’’, $200,000,000, to remain available until September 

20 30, 2010. 

21 OFFICE OF INSPECTOR GENERAL

22 For an additional amount for ‘‘Office of Inspector 

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

24 30, 2011. 
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1 NATIONAL SCIENCE FOUNDATION

2 RESEARCH AND RELATED ACTIVITIES

3 For an additional amount for ‘‘Research and Related 

4 Activities’’, $1,000,000,000, to remain available until Sep5 tember 30, 2010. 

6 MAJOR RESEARCH EQUIPMENT AND FACILITIES

7 CONSTRUCTION

8 For an additional amount for ‘‘Major Research Equip9 ment and Facilities Construction’’, $150,000,000, to remain 

10 available until September 30, 2010. 

11 EDUCATION AND HUMAN RESOURCES

12 For an additional amount for ‘‘Education and 

13 Human Resources’’, $50,000,000, to remain available until 

14 September 30, 2010. 

15 OFFICE OF INSPECTOR GENERAL

16 For an additional amount for ‘‘Office of Inspector 

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

18 30, 2011. 

19 GENERAL PROVISIONS—THIS TITLE 

20 SEC. 201. The Assistant Secretary of Commerce for 

21 Communications and Information (Assistant Secretary), in 

22 consultation with the Federal Communications Commission 

23 (Commission) (and, with respect to rural areas, the Sec24 retary of Agriculture), shall establish a national broadband 

25 service development and expansion program in conjunction 
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1 with the technology opportunities program, which shall be 

2 referred to the Broadband Technology Opportunities Pro3 gram. The Assistant Secretary shall ensure that the pro4 gram complements and enhances and does not conflict with 

5 other Federal broadband initiatives and programs. 

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

7 (A) provide access to broadband service to 

8 citizens residing in unserved areas of the United 

9 States; 

10 (B) provide improved access to broadband 

11 service to citizens residing in underserved areas 

12 of the United States; 

13 (C) provide broadband education, aware14 ness, training, access, equipment, and support 

15 to— 

16 (i) schools, libraries, medical and 

17 healthcare providers, community colleges 

18 and other institutions of higher education, 

19 and other community support organizations 

20 and entities to facilitate greater use of 

21 broadband service by or through these orga22 nizations; 

23 (ii) organizations and agencies that 

24 provide outreach, access, equipment, and 

25 support services to facilitate greater use of 
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1 broadband service by low-income, unem2 ployed, aged, and otherwise vulnerable pop3 ulations; and 

4 (iii) job-creating strategic facilities lo5 cated within a State-designated economic 

6 zone, Economic Development District des7 ignated by the Department of Commerce, 

8 Renewal Community or Empowerment 

9 Zone designated by the Department of 

10 Housing and Urban Development, or Enter11 prise Community designated by the Depart12 ment of Agriculture. 

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

14 broadband service by public safety agencies; and 

15 (E) stimulate the demand for broadband, 

16 economic growth, and job creation. 

17 (2) The Assistant Secretary may consult with the 

18 chief executive officer of any State with respect to— 

19 (A) the identification of areas described in 

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

21 and 

22 (B) the allocation of grant funds within 

23 that State for projects in or affecting the State. 

24 (3) The Assistant Secretary shall— 
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1 (A) establish and implement the grant pro2 gram as expeditiously as practicable; 

3 (B) ensure that all awards are made before 

4 the end of fiscal year 2010; 

5 (C) seek such assurances as may be nec6 essary or appropriate from grantees under the 

7 program that they will substantially complete 

8 projects supported by the program in accordance 

9 with project timelines, not to exceed 2 years fol10 lowing an award; and 

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

12 the Committees on Appropriations of the House 

13 and the Senate, the Committee on Energy and 

14 Commerce of the House, and the Committee on 

15 Commerce, Science, and Transportation of the 

16 Senate, every 90 days. 

17 (4) To be eligible for a grant under the program 

18 an applicant shall— 

19 (A) be a State or political subdivision there20 of, a nonprofit foundation, corporation, institu21 tion or association, Indian tribe, Native Hawai22 ian organization, or other non-governmental en23 tity in partnership with a State or political sub24 division thereof, Indian tribe, or Native Hawai25 ian organization if the Assistant Secretary deter-
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1 mines the partnership consistent with the pur2 poses this section; 

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

4 such form, and containing such information as 

5 the Assistant Secretary may require; 

6 (C) provide a detailed explanation of how 

7 any amount received under the program will be 

8 used to carry out the purposes of this section in 

9 an efficient and expeditious manner, including a 

10 demonstration that the project would not have 

11 been implemented during the grant period with12 out Federal grant assistance; 

13 (D) demonstrate, to the satisfaction of the 

14 Assistant Secretary, that it is capable of car15 rying out the project or function to which the ap16 plication relates in a competent manner in com17 pliance with all applicable Federal, State, and 

18 local laws; 

19 (E) demonstrate, to the satisfaction of the 

20 Assistant Secretary, that it will appropriate (if 

21 the applicant is a State or local government 

22 agency) or otherwise unconditionally obligate, 

23 from non-Federal sources, funds required to meet 

24 the requirements of paragraph (5); 
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1 (F) disclose to the Assistant Secretary the 

2 source and amount of other Federal or State 

3 funding sources from which the applicant re4 ceives, or has applied for, funding for activities 

5 or projects to which the application relates; and 

6 (G) provide such assurances and procedures 

7 as the Assistant Secretary may require to ensure 

8 that grant funds are used and accounted for in 

9 an appropriate manner. 

10 (5) The Federal share of any project may not ex11 ceed 80 percent, except that the Assistant Secretary 

12 may increase the Federal share of a project above 80 

13 percent if— 

14 (A) the applicant petitions the Assistant 

15 Secretary for a waiver; and 

16 (B) the Assistant Secretary determines that 

17 the petition demonstrates financial need. 

18 (6) The Assistant Secretary may make competi19 tive grants under the program to— 

20 (A) acquire equipment, instrumentation, 

21 networking capability, hardware and software, 

22 digital network technology, and infrastructure 

23 for broadband services; 

24 (B) construct and deploy broadband service 

25 related infrastructure; 
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1 (C) ensure access to broadband service by 

2 community anchor institutions; 

3 (D) facilitate access to broadband service by 

4 low-income, unemployed, aged, and otherwise 

5 vulnerable populations in order to provide edu6 cational and employment opportunities to mem7 bers of such populations; 

8 (E) construct and deploy broadband facili9 ties that improve public safety broadband com10 munications services; and 

11 (F) undertake such other projects and ac12 tivities as the Assistant Secretary finds to be 

13 consistent with the purposes for which the pro14 gram is established. 

15 (7) The Assistant Secretary— 

16 (A) shall require any entity receiving a 

17 grant pursuant to this section to report quar18 terly, in a format specified by the Assistant Sec19 retary, on such entity’s use of the assistance and 

20 progress fulfilling the objectives for which such 

21 funds were granted, and the Assistant Secretary 

22 shall make these reports available to the public; 

23 (B) may establish additional reporting and 

24 information requirements for any recipient of 
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1 any assistance made available pursuant to this 

2 section; 

3 (C) shall establish appropriate mechanisms 

4 to ensure appropriate use and compliance with 

5 all terms of any use of funds made available 

6 pursuant to this section; 

7 (D) may, in addition to other authority 

8 under applicable law, deobligate awards to 

9 grantees that demonstrate an insufficient level of 

10 performance, or wasteful or fraudulent spending, 

11 as defined in advance by the Assistant Secretary, 

12 and award these funds competitively to new or 

13 existing applicants consistent with this section; 

14 and 

15 (E) shall create and maintain a fully 

16 searchable database, accessible on the Internet at 

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

18 name of each entity receiving funds made avail19 able pursuant to this section, the purpose for 

20 which such entity is receiving such funds, each 

21 quarterly report submitted by the entity pursu22 ant to this section, and such other information 

23 sufficient to allow the public to understand and 

24 monitor grants awarded under the program. 
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1 (8) Concurrent with the issuance of the Request 

2 for Proposal for grant applications pursuant to this 

3 section, the Assistant Secretary shall, in coordination 

4 with the Federal Communications Commission, pub5 lish the non-discrimination and network interconnec6 tion obligations that shall be contractual conditions of 

7 grants awarded under this section. 

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

9 this Act, the Commission shall complete a rulemaking 

10 to develop a national broadband plan. In developing 

11 the plan, the Commission shall— 

12 (A) consider the most effective and efficient 

13 national strategy for ensuring that all Ameri14 cans have access to, and take advantage of, ad15 vanced broadband services; 

16 (B) have access to data provided to other 

17 Government agencies under the Broadband Data 

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

19 (C) evaluate the status of deployments of 

20 broadband service, including the progress of 

21 projects supported by the grants made pursuant 

22 to this section; and 

23 (D) develop recommendations for achieving 

24 the goal of nationally available broadband serv-
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1 ice for the United States and for promoting 

2 broadband adoption nationwide. 

3 (10) The Assistant Secretary shall develop and 

4 maintain a comprehensive nationwide inventory map 

5 of existing broadband service capability and avail6 ability in the United States that entities and depicts 

7 the geographic extent to which broadband service ca8 pability is deployed and available from a commercial 

9 provider or public provider throughout each State: 

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

11 of the enactment of the Act, the Assistant Secretary 

12 shall make the broadband inventory map developed 

13 and maintained pursuant to this section accessible to 

14 the public. 

15 SEC. 202. The Assistant Secretary of Commerce for 

16 Communications and Information may reissue any coupon 

17 issued under section 3005(a) of the Digital Television Tran18 sition and Public Safety Act of 2005 that has expired before 

19 use, and shall cancel any unredeemed coupon reported as 

20 lost and may issue a replacement coupon for the lost cou21 pon. 
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1 TITLE III—DEPARTMENT OF DEFENSE 

2 OPERATION AND MAINTENANCE 

3 OPERATION AND MAINTENANCE, ARMY

4 For an additional amount for ‘‘Operation and Mainte5 nance, Army’’, $1,169,291,000, to remain available for obli6 gation until September 30, 2010. 

7 OPERATION AND MAINTENANCE, NAVY

8 For an additional amount for ‘‘Operation and Mainte9 nance, Navy’’, $571,843,000, to remain available for obliga10 tion until September 30, 2010. 

11 OPERATION AND MAINTENANCE, MARINE CORPS

12 For an additional amount for ‘‘Operation and Mainte13 nance, Marine Corps’’, $112,167,000, to remain available 

14 for obligation until September 30, 2010. 

15 OPERATION AND MAINTENANCE, AIR FORCE

16 For an additional amount for ‘‘Operation and Mainte17 nance, Air Force’’, $927,113,000, to remain available for 

18 obligation until September 30, 2010. 

19 OPERATION AND MAINTENANCE, ARMY RESERVE

20 For an additional amount for ‘‘Operation and Mainte21 nance, Army Reserve’’, $79,543,000, to remain available for 

22 obligation until September 30, 2010. 
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1 OPERATION AND MAINTENANCE, NAVY RESERVE

2 For an additional amount for ‘‘Operation and Mainte3 nance, Navy Reserve’’, $44,586,000, to remain available for 

4 obligation until September 30, 2010. 

5 OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

6 For an additional amount for ‘‘Operation and Mainte7 nance, Marine Corps Reserve’’, $32,304,000, to remain 

8 available for obligation until September 30, 2010. 

9 OPERATION AND MAINTENANCE, AIR FORCE RESERVE

10 For an additional amount for ‘‘Operation and Mainte11 nance, Air Force Reserve’’, $10,674,000, to remain avail12 able for obligation until September 30, 2010. 

13 OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

14 For an additional amount for ‘‘Operation and Mainte15 nance, Army National Guard’’, $215,557,000, to remain 

16 available for obligation until September 30, 2010. 

17 OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

18 For an additional amount for ‘‘Operation and Mainte19 nance, Air National Guard’’, $20,922,000, to remain avail20 able for obligation until September 30, 2010. 

21 PROCUREMENT 

22 DEFENSE PRODUCTION ACT PURCHASES

23 For an additional amount for ‘‘Defense Production Act 

24 Purchases’’, $100,000,000, to remain available for obliga25 tion until September 30, 2010. 
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1 RESEARCH, DEVELOPMENT, TEST AND 

2 EVALUATION 

3 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, 

4 DEFENSE-WIDE

5 For an additional amount for ‘‘Research, Develop6 ment, Test and Evaluation, Defense-Wide’’, $200,000,000, 

7 to remain available for obligation until September 30, 

8 2010. 

9 OTHER DEPARTMENT OF DEFENSE PROGRAMS 

10 DEFENSE HEALTH PROGRAM

11 For an additional amount for ‘‘Defense Health Pro12 gram’’, $250,000,000 for operation and maintenance, to re13 main available for obligation until September 30, 2010. 

14 OFFICE OF THE INSPECTOR GENERAL

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

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

17 remain available for obligation until September 30, 2011, 

18 and an additional $3,000,000 for such purposes, to remain 

19 available until September 30, 2011. 
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HR 1 EAS 

1 TITLE IV—ENERGY AND WATER DEVELOPMENT 

2 DEPARTMENT OF DEFENSE—CIVIL 

3 DEPARTMENT OF THE ARMY

4 CORPS OF ENGINEERS—CIVIL

5 INVESTIGATIONS

6 For an additional amount for ‘‘Investigations’’ for ex7 penses necessary where authorized by law for the collection 

8 and study of basic information pertaining to river and har9 bor, flood and storm damage reduction, shore protection, 

10 aquatic ecosystem restoration, and related needs; for surveys 

11 and detailed studies, and plans and specifications of pro12 posed river and harbor, flood and storm damage reduction, 

13 shore protection, and aquatic ecosystem restoration projects 

14 and related efforts prior to construction; for restudy of au15 thorized projects; and for miscellaneous investigations and, 

16 when authorized by law, surveys and detailed studies, and 

17 plans and specifications of projects prior to construction, 

18 $25,000,000: Provided, That funds provided under this 

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

20 projects or activities that heretofore or hereafter receive 

21 funds provided in Acts making appropriations available for 

22 Energy and Water Development: Provided further, That 

23 funds provided under this heading in this title shall be used 

24 for programs, projects or activities or elements of programs, 

25 projects or activities that can be completed within the funds 
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1 made available in that account and that will not require 

2 new budget authority to complete: Provided further, That 

3 for projects that are being completed with funds appro4 priated in this Act that would otherwise be expired for obli5 gation, expired funds appropriated in this Act may be used 

6 to pay the cost of associated supervision, inspection, over 

7 engineering and design on those projects and on subsequent 

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

9 have unlimited reprogramming authority for these funds 

10 provided under this heading. 

11 CONSTRUCTION

12 For an additional amount for ‘‘Construction’’ for ex13 penses necessary for the construction of river and harbor, 

14 flood and storm damage reduction, shore protection, aquatic 

15 ecosystem restoration, and related projects authorized by 

16 law, $2,000,000,000, of which such sums as are necessary 

17 to cover the Federal share of construction costs for facilities 

18 under the Dredged Material Disposal Facilities program 

19 shall be derived from the Harbor Maintenance Trust Fund 

20 as authorized by Public Law 104–303: Provided, That not 

21 less than $200,000,000 of the funds provided shall be for 

22 water-related environmental infrastructure assistance: Pro23 vided further, That section 102 of Public Law 109–103 (33 

24 U.S.C. 2221) shall not apply to funds provided in this title: 

25 Provided further, That notwithstanding any other provision 
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1 of law, no funds shall be drawn from the Inland Waterways 

2 Trust Fund, as authorized in Public Law 99–662: Provided 

3 further, That funds provided under this heading in this title 

4 shall only be used for programs, projects or activities that 

5 heretofore or hereafter receive funds provided in Acts mak6 ing appropriations available for Energy and Water Devel7 opment: Provided further, That funds provided under this 

8 heading in this title shall be used for programs, projects 

9 or activities or elements of programs, projects or activities 

10 that can be completed within the funds made available in 

11 that account and that will not require new budget authority 

12 to complete: Provided further, That the limitation con13 cerning total project costs in section 902 of the Water Re14 sources Development Act of 1986, as amended (33 U.S.C. 

15 2280), shall not apply during fiscal year 2009 to any 

16 project that received funds provided in this title: Provided 

17 further, That funds appropriated under this heading may 

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

19 Chief of Engineers, to undertake work authorized to be car20 ried out in accordance with section 14 of the Flood Control 

21 Act of 1946 (33 U.S.C. 701r); section 205 of the Flood Con22 trol Act of 1948 (33 U.S.C. 701s); section 206 of the Water 

23 Resources Development Act of 1996 (33 U.S.C. 2330); or 

24 section 1135 of the Water Resources Development Act of 

25 1986 (33 U.S.C. 2309a), notwithstanding the program cost 
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1 limitations set forth in those sections: Provided further, 

2 That for projects that are being completed with funds ap3 propriated in this Act that would otherwise be expired for 

4 obligation, expired funds appropriated in this Act may be 

5 used to pay the cost of associated supervision, inspection, 

6 over engineering and design on those projects and on subse7 quent claims, if any: Provided further, That the Secretary 

8 shall have unlimited reprogramming authority for these 

9 funds provided under this heading. 

10 MISSISSIPPI RIVER AND TRIBUTARIES

11 For an additional amount for ‘‘Mississippi River and 

12 Tributaries’’ for expenses necessary for flood damage reduc13 tion projects and related efforts as authorized by law, 

14 $500,000,000, of which such sums as are necessary to cover 

15 the Federal share of operation and maintenance costs for 

16 inland harbors shall be derived from the Harbor Mainte17 nance Trust Fund, pursuant to Public Law 99–662: Pro18 vided, That funds provided under this heading in this title 

19 shall only be used for programs, projects or activities that 

20 heretofore or hereafter receive funds provided in Acts mak21 ing appropriations available for Energy and Water Devel22 opment: Provided further, That funds provided under this 

23 heading in this title shall be used for programs, projects 

24 or activities or elements of programs, projects or activities 

25 that can be completed within the funds made available in 
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1 that account and that will not require new budget authority 

2 to complete: Provided further, That the limitation con3 cerning total project costs in section 902 of the Water Re4 sources Development Act of 1986, as amended (33 U.S.C. 

5 2280), shall not apply during fiscal year 2009 to any 

6 project that received funds provided in this title: Provided 

7 further, That for projects that are being completed with 

8 funds appropriated in this Act that would otherwise be ex9 pired for obligation, expired funds appropriated in this Act 

10 may be used to pay the cost of associated supervision, in11 spection, over engineering and design on those projects and 

12 on subsequent claims, if any: Provided further, That the 

13 Secretary shall have unlimited reprogramming authority 

14 for these funds provided under this heading. 

15 OPERATION AND MAINTENANCE

16 For an additional amount for ‘‘Operation and Mainte17 nance’’ for expenses necessary for the operation, mainte18 nance, and care of existing river and harbor, flood and 

19 storm damage reduction, aquatic ecosystem restoration, and 

20 related projects authorized by law, and for surveys and 

21 charting of northern and northwestern lakes and connecting 

22 waters, clearing and straightening channels, and removal 

23 of obstructions to navigation, $1,900,000,000, of which such 

24 sums as are necessary to cover the Federal share of oper25 ation and maintenance costs for coastal harbors and chan-
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1 nels, and inland harbors shall be derived from the Harbor 

2 Maintenance Trust Fund, pursuant to Public Law 99–662; 

3 and of which such sums as become available under section 

4 217 of the Water Resources Development Act of 1996, Public 

5 Law 104–303, shall be used to cover the cost of operation 

6 and maintenance of the dredged material disposal facilities 

7 for which fees have been collected: Provided, That funds pro8 vided under this heading in this title shall only be used 

9 for programs, projects or activities that heretofore or here10 after receive funds provided in Acts making appropriations 

11 available for Energy and Water Development: Provided fur12 ther, That funds provided under this heading in this title 

13 shall be used for programs, projects or activities or elements 

14 of programs, projects or activities that can be completed 

15 within the funds made available in that account and that 

16 will not require new budget authority to complete: Provided 

17 further, That $90,000,000 of the funds provided under this 

18 heading shall be used for activities described in section 9004 

19 of Public Law 110–114: Provided further, That section 9006 

20 of Public Law 110–114 shall not apply to funds provided 

21 in this title: Provided further, That for projects that are 

22 being completed with funds appropriated in this Act that 

23 would otherwise be expired for obligation, expired funds ap24 propriated in this Act may be used to pay the cost of associ25 ated supervision, inspection, over engineering and design 
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1 on those projects and on subsequent claims, if any: Provided 

2 further, That the Secretary shall have unlimited reprogram3 ming authority for these funds provided under this heading. 

4 REGULATORY PROGRAM

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

6 for expenses necessary for administration of laws per7 taining to regulation of navigable waters and wetlands, 

8 $25,000,000 is provided. 

9 FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAM

10 For an additional amount for ‘‘Formerly Utilized 

11 Sites Remedial Action Program’’ for expenses necessary to 

12 clean up contamination from sites in the United States re13 sulting from work performed as part of the Nation’s early 

14 atomic energy program, $100,000,000: Provided further, 

15 That funds provided under this heading in this title shall 

16 be used for programs, projects or activities or elements of 

17 programs, projects or activities that can be completed with18 in the funds made available in that account and that will 

19 not require new budget authority to complete: Provided fur20 ther, That for projects that are being completed with funds 

21 appropriated in this Act that would otherwise be expired 

22 for obligation, expired funds appropriated in this Act may 

23 be used to pay the cost of associated supervision, inspection, 

24 over engineering and design on those projects and on subse25 quent claims, if any: Provided further, That the Secretary 
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1 shall have unlimited reprogramming authority for these 

2 funds provided under this heading. 

3 FLOOD CONTROL AND COASTAL EMERGENCIES

4 For an additional amount for ‘‘Flood Control and 

5 Coastal Emergencies’’ for expenses necessary for pre-place6 ment of materials and equipment, advance measures and 

7 other activities authorized by law, $50,000,000 is provided. 

8 DEPARTMENT OF THE INTERIOR 

9 BUREAU OF RECLAMATION

10 WATER AND RELATED RESOURCES

11 For an additional amount for management, develop12 ment, and restoration of water and related natural re13 sources and for related activities, including the operation, 

14 maintenance, and rehabilitation of reclamation and other 

15 facilities, participation in fulfilling related Federal respon16 sibilities to Native Americans, and related grants to, and 

17 cooperative and other agreements with, State and local gov18 ernments, federally recognized Indian tribes, and others, 

19 $1,400,000,000; of which such amounts as may be necessary 

20 may be advanced to the Colorado River Dam Fund: Pro21 vided, That of the total appropriated, the amount for pro22 gram activities that can be financed by the Reclamation 

23 Fund or the Bureau of Reclamation special fee account es24 tablished by 16 U.S.C. 460l–6a(i) shall be derived from that 

25 Fund or account: Provided further, That funds contributed 
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1 under 43 U.S.C. 395 are available until expended for the 

2 purposes for which contributed: Provided further, That 

3 funds advanced under 43 U.S.C. 397a shall be credited to 

4 this account and are available until expended for the same 

5 purposes as the sums appropriated under this heading: Pro6 vided further, That funds provided under this heading in 

7 this title shall only be used for programs, projects or activi8 ties that heretofore or hereafter receive funds provided in 

9 Acts making appropriations available for Energy and 

10 Water Development: Provided further, That funds provided 

11 in this Act shall be used for elements of projects, programs 

12 or activities that can be completed within these funding 

13 amounts and not create budgetary obligations in future fis14 cal years: Provided further, That $50,000,000 of the funds 

15 provided under this heading may be transferred to the De16 partment of the Interior for programs, projects and activi17 ties authorized by the Central Utah Project Completion Act 

18 (titles II–V of Public Law 102–575): Provided further, That 

19 $50,000,000 of the funds provided under this heading may 

20 be used for programs, projects, and activities authorized by 

21 the California Bay-Delta Restoration Act (Public Law 108– 

22 361): Provided further, That not less than $60,000,000 of 

23 the funds provided under this heading shall be used for 

24 rural water projects and shall be expended primarily on 

25 water intake and treatment facilities of such projects: Pro-
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1 vided further, That not less than $10,000,000 of the funds 

2 provided under this heading shall be used for a bureau-wide 

3 inspection of canals program in urbanized areas: Provided 

4 further, That not less than $110,000,000 of the funds pro5 vided under this heading shall be used for water reclama6 tion and reuse projects (title 16 of Public Law 102–575): 

7 Provided further, That the costs of reimbursable activities, 

8 other than for maintenance and rehabilitation, carried out 

9 with funds provided in this Act shall be repaid pursuant 

10 to existing authorities and agreements: Provided further, 

11 That the costs of maintenance and rehabilitation activities 

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

13 pursuant to existing authority, except the length of repay14 ment period shall be determined on needs-based criteria to 

15 be established and adopted by the Commissioner, but in no 

16 case shall the repayment period exceed 25 years: Provided 

17 further, That for projects that are being completed with 

18 funds appropriated in this Act that would otherwise be ex19 pired for obligation, expired funds appropriated in this Act 

20 may be used to pay the cost of associated supervision, in21 spection, over engineering and design on those projects and 

22 on subsequent claims, if any: Provided further, That the 

23 Secretary shall have unlimited reprogramming authority 

24 for these funds provided under this heading. 
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1 DEPARTMENT OF ENERGY 

2 ENERGY PROGRAMS

3 ENERGY EFFICIENCY AND RENEWABLE ENERGY

4 For an additional amount for ‘‘Energy Efficiency and 

5 Renewable Energy’’, $14,398,000,000, for necessary ex6 penses, to remain available until September 30, 2010: Pro7 vided, That $4,200,000,000 shall be available for Energy 

8 Efficiency and Conservation Block Grants for implementa9 tion of programs authorized under subtitle E of title V of 

10 the Energy Independence and Security Act of 2007 (42 

11 U.S.C. 17151 et seq.), of which $2,100,000,000 is available 

12 through the formula in subtitle E: Provided further, That 

13 the remaining $2,100,000,000 shall be awarded on a com14 petitive basis only to competitive grant applicants from 

15 States in which the Governor certifies to the Secretary of 

16 Energy that the applicable State regulatory authority will 

17 implement the integrated resource planning and rate design 

18 modifications standards required to be considered under 

19 paragraphs (16) and (17) of section 111(d) of the Public 

20 Utility Regulatory Policies Act of 1978 (16 U.S.C. 

21 2621(d)(16) and (17)); and the Governor will take all ac22 tions within his or her authority to ensure that the State, 

23 or the applicable units of local government that have au24 thority to adopt building codes, will implement— 
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1 (A) building energy codes for residential build2 ings that the Secretary determines are likely to meet 

3 or exceed the 2009 International Energy Conservation 

4 Code; 

5 (B) building energy codes for commercial build6 ings that the Secretary determines are likely to meet 

7 or exceed the ANSI/ASHRAE/IESNA Standard 90.1– 

8 2007; and 

9 (C) a plan for implementing and enforcing the 

10 building energy codes described in subparagraphs (A) 

11 and (B) that is likely to ensure that at least 90 per12 cent of the new and renovated residential and com13 mercial building space will meet the standards within 

14 8 years after the date of enactment of this Act: 

15 Provided further, That $2,000,000,000 shall be available for 

16 grants for the manufacturing of advanced batteries and 

17 components and the Secretary shall provide facility funding 

18 awards under this section to manufacturers of advanced 

19 battery systems and vehicle batteries that are produced in 

20 the United States, including advanced lithium ion batteries, 

21 hybrid electrical systems, component manufacturers, and 

22 software designers: Provided further, That notwithstanding 

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

24 regard to the provisions of sections 3309 through 3318 of 

25 such title 5, the Secretary of Energy, upon a determination 
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1 that there is a severe shortage of candidates or a critical 

2 hiring need for particular positions, may from within the 

3 funds provided, recruit and directly appoint highly quali4 fied individuals into the competitive service: Provided fur5 ther, That such authority shall not apply to positions in 

6 the Excepted Service or the Senior Executive Service: Pro7 vided further, That any action authorized herein shall be 

8 consistent with the merit principles of section 2301 of such 

9 title 5, and the Department shall comply with the public 

10 notice requirements of section 3327 of such title 5. 

11 ELECTRICITY DELIVERY AND ENERGY RELIABILITY

12 For an additional amount for ‘‘Electricity Delivery 

13 and Energy Reliability’’, $4,500,000,000, for necessary ex14 penses, to remain available until September 30, 2010: Pro15 vided, That $100,000,000 shall be available for worker 

16 training activities: Provided further, That notwithstanding 

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

18 regard to the provisions of sections 3309 through 3318 of 

19 such title 5, the Secretary of Energy, upon a determination 

20 that there is a severe shortage of candidates or a critical 

21 hiring need for particular positions, may from within the 

22 funds provided, recruit and directly appoint highly quali23 fied individuals into the competitive service: Provided fur24 ther, That such authority shall not apply to positions in 

25 the Excepted Service or the Senior Executive Service: Pro-
73 

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1 vided further, That any action authorized herein shall be 

2 consistent with the merit principles of section 2301 of such 

3 title 5, and the Department shall comply with the public 

4 notice requirements of section 3327 of such title 5: Provided, 

5 That for the purpose of facilitating the development of re6 gional transmission plans, the Office of Electricity Delivery 

7 and Energy Reliability within the Department of Energy 

8 is provided $80,000,000 within the available funds to con9 duct a resource assessment and an analysis of future de10 mand and transmission requirements: Provided further, 

11 That the Office of Electricity Delivery and Energy Reli12 ability will provide technical assistance to the North Amer13 ican Electric Reliability Corporation, the regional reli14 ability entities, the States, and other transmission owners 

15 and operators for the formation of interconnection-based 

16 transmission plans for the Eastern and Western Inter17 connections and ERCOT: Provided further, That such as18 sistance may include modeling, support to regions and 

19 States for the development of coordinated State electricity 

20 policies, programs, laws, and regulations: Provided further, 

21 That $10,000,000 is provided to implement section 1305 of 

22 Public Law 110–140. 

23 FOSSIL ENERGY RESEARCH AND DEVELOPMENT

24 For an additional amount for ‘‘Fossil Energy Research 

25 and Development’’, $4,600,000,000, to remain available 
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1 until September 30, 2010: Provided, That $2,000,000,000 

2 is available for one or more near zero emissions power3 plant(s): Provided further, $1,000,000,000 is available for 

4 selections under the Department’s Clean Coal Power Initia5 tive Round III Funding Opportunity Announcement; not6 withstanding the mandatory eligibility requirements of the 

7 Funding Opportunity Announcement, the Department shall 

8 consider applications that utilize petroleum coke for some 

9 or all of the project’s fuel input: Provided further, 

10 $1,520,000,000 is available for a competitive solicitation 

11 pursuant to section 703 of Public Law 110–140 for projects 

12 that demonstrate carbon capture from industrial sources: 

13 Provided further, That awards for such projects may in14 clude plant efficiency improvements for integration with 

15 carbon capture technology. 

16 NON-DEFENSE ENVIRONMENTAL CLEANUP

17 For an additional amount for ‘‘Non-Defense Environ18 mental Cleanup’’, $483,000,000, to remain available until 

19 September 30, 2010. 

20 URANIUM ENRICHMENT DECONTAMINATION AND

21 DECOMMISSIONING FUND

22 For an additional amount for ‘‘Uranium Enrichment 

23 Decontamination and Decommissioning Fund’’, 

24 $390,000,000, to remain available until September 30, 
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1 2010, of which $70,000,000 shall be available in accordance 

2 with title X, subtitle A of the Energy Policy Act of 1992. 

3 SCIENCE

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

5 $330,000,000, to remain available until September 30, 

6 2010. 

7 TITLE 17—INNOVATIVE TECHNOLOGY LOAN GUARANTEE

8 PROGRAM

9 Subject to section 502 of the Congressional Budget Act 

10 of 1974, commitments to guarantee loans under section 

11 1702(b)(2) of the Energy Policy Act of 2005, shall not ex12 ceed a total principal amount of $50,000,000,000 for eligi13 ble projects, to remain available until committed: Provided, 

14 That these amounts are in addition to any authority pro15 vided elsewhere in this Act and this and previous fiscal 

16 years: Provided further, That such sums as are derived from 

17 amounts received from borrowers pursuant to section 

18 1702(b)(2) of the Energy Policy Act of 2005 under this 

19 heading in this and prior Acts, shall be collected in accord20 ance with section 502(7) of the Congressional Budget Act 

21 of 1974: Provided further, That the source of such payment 

22 received from borrowers is not a loan or other debt obliga23 tion that is guaranteed by the Federal Government: Pro24 vided further, That pursuant to section 1702(b)(2) of the 

25 Energy Policy Act of 2005, no appropriations are available 
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1 to pay the subsidy cost of such guarantees: Provided further, 

2 That none of the loan guarantee authority made available 

3 in this Act shall be available for commitments to guarantee 

4 loans under section 1702(b)(2) of the Energy Policy Act of 

5 2005 for any projects where funds, personnel, or property 

6 (tangible or intangible) of any Federal agency, instrumen7 tality, personnel or affiliated entity are expected to be used 

8 (directly or indirectly) through acquisitions, contracts, 

9 demonstrations, exchanges, grants, incentives, leases, pro10 curements, sales, other transaction authority, or other ar11 rangements, to support the project or to obtain goods or 

12 services from the project: Provided further, That none of the 

13 loan guarantee authority made available in this Act shall 

14 be available under section 1702(b)(2) of the Energy Policy 

15 Act of 2005 for any project unless the Director of the Office 

16 of Management and Budget has certified in advance in 

17 writing that the loan guarantee and the project comply with 

18 the provisions under this title: Provided further, That for 

19 an additional amount for the cost of guaranteed loans au20 thorized by section 1702(b)(1) and section 1705 of the En21 ergy Policy Act of 2005, $8,500,000,000, available until ex22 pended, to pay the costs of guarantees made under this sec23 tion: Provided further, That of the amount provided for 

24 Title XVII, $15,000,000 shall be used for administrative ex25 penses in carrying out the guaranteed loan program. 
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1 OFFICE OF THE INSPECTOR GENERAL

2 For necessary expenses of the Office of the Inspector 

3 General in carrying out the provisions of the Inspector Gen4 eral Act of 1978, as amended, $5,000,000, to remain avail5 able until September 30, 2012, and an additional 

6 $10,000,000 for such purposes, to remain available until 

7 September 30, 2012. 

8 ATOMIC ENERGY DEFENSE ACTIVITIES 

9 NATIONAL NUCLEAR SECURITY ADMINISTRATION

10 WEAPONS ACTIVITIES

11 For an additional amount for weapons activities, 

12 $1,000,000,000, to remain available until September 30, 

13 2010. 

14 ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

15 DEFENSE ENVIRONMENTAL CLEANUP

16 For an additional amount for ‘‘Defense Environ17 mental Cleanup’’, $5,527,000,000, to remain available until 

18 September 30, 2010. 

19 CONSTRUCTION, REHABILITATION, OPERATION, AND

20 MAINTENANCE, WESTERN AREA POWER ADMINISTRATION

21 For carrying out the functions authorized by title III, 

22 section 302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. 

23 7152), and other related activities including conservation 

24 and renewable resources programs as authorized, 

25 $10,000,000, to remain available until expended: Provided, 
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1 That the Administrator shall establish such personnel staff2 ing levels as he deems necessary to economically and effi3 ciently complete the activities pursued under the authority 

4 granted by section 402 of this Act: Provided further, That 

5 this appropriation is non-reimbursable. 

6 GENERAL PROVISIONS—THIS TITLE 

7 SEC. 401. BONNEVILLE POWER ADMINISTRATION BOR8 ROWING AUTHORITY. For the purposes of providing funds 

9 to assist in financing the construction, acquisition, and re10 placement of the transmission system of the Bonneville 

11 Power Administration and to implement the authority of 

12 the Administrator of the Bonneville Power Administration 

13 under the Pacific Northwest Electric Power Planning and 

14 Conservation Act (16 U.S.C. 839 et seq.), an additional 

15 $3,250,000,000 in borrowing authority is made available 

16 under the Federal Columbia River Transmission System 

17 Act (16 U.S.C. 838 et seq.), to remain outstanding at any 

18 time. 

19 SEC. 402. WESTERN AREA POWER ADMINISTRATION

20 BORROWING AUTHORITY. The Hoover Power Plant Act of 

21 1984 (Public Law 98–381) is amended by adding at the 

22 end the following: 
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1 ‘‘TITLE III—BORROWING 

2 AUTHORITY 

3 ‘‘SEC. 301. WESTERN AREA POWER ADMINISTRATION BOR4 ROWING AUTHORITY. 

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

6 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis7 trator’ means the Administrator of the Western Area 

8 Power Administration. 

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

10 the Secretary of the Treasury. 

11 ‘‘(b) AUTHORITY.— 

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

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

14 (5)— 

15 ‘‘(A) the Western Area Power Administra16 tion may borrow funds from the Treasury; and 

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

18 appropriation and without fiscal year limita19 tion, loan to the Western Area Power Adminis20 tration, on such terms as may be fixed by the 

21 Administrator and the Secretary, such sums (not 

22 to exceed, in the aggregate (including deferred 

23 interest), $3,250,000,000 in outstanding repay24 able balances at any one time) as, in the judg-
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1 ment of the Administrator, are from time to time 

2 required for the purpose of— 

3 ‘‘(i) constructing, financing, facili4 tating, planning, operating, maintaining, 

5 or studying construction of new or up6 graded electric power transmission lines 

7 and related facilities with at least one ter8 minus within the area served by the West9 ern Area Power Administration; and 

10 ‘‘(ii) delivering or facilitating the de11 livery of power generated by renewable en12 ergy resources constructed or reasonably ex13 pected to be constructed after the date of en14 actment of this section. 

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

16 charged in connection with any loan made pursuant 

17 to this subsection shall be fixed by the Secretary, tak18 ing into consideration market yields on outstanding 

19 marketable obligations of the United States of com20 parable maturities as of the date of the loan. 

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

22 Administration may refinance loans taken pursuant 

23 to this section within the Treasury. 

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

25 permit other entities to participate in the financing, 
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1 construction and ownership projects financed under 

2 this section. 

3 ‘‘(5) CONGRESSIONAL REVIEW OF DISBURSE4 MENT.—Effective upon the date of enactment of this 

5 section, the Administrator shall have the authority to 

6 have utilized $1,750,000,000 at any one time. If the 

7 Administrator seeks to borrow funds above 

8 $1,750,000,000, the funds will be disbursed unless 

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

10 such request, a joint resolution that rescinds the re11 mainder of the balance of the borrowing authority 

12 provided in this section. 

13 ‘‘(c) TRANSMISSION LINE AND RELATED FACILITY

14 PROJECTS.— 

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

16 each transmission line and related facility project in 

17 which the Western Area Power Administration par18 ticipates pursuant to this section shall be treated as 

19 separate and distinct from— 

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

21 ‘‘(B) all other Western Area Power Admin22 istration power and transmission facilities. 

23 ‘‘(2) PROCEEDS.—The Western Area Power Ad24 ministration shall apply the proceeds from the use of 

25 the transmission capacity from an individual project 
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1 under this section to the repayment of the principal 

2 and interest of the loan from the Treasury attrib3 utable to that project, after reserving such funds as 

4 the Western Area Power Administration determines 

5 are necessary— 

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

7 are provided; and 

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

9 maintaining the new project from which the rev10 enues are derived. 

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

12 use of projects under this section shall be the only 

13 source of revenue for— 

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

15 the project; and 

16 ‘‘(B) payment of expenses for ancillary serv17 ices and operation and maintenance. 

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

19 this section confers on the Administrator any addi20 tional authority or obligation to provide ancillary 

21 services to users of transmission facilities developed 

22 under this section. 

23 ‘‘(5) TREATMENT OF CERTAIN REVENUES.—Rev24 enue from ancillary services provided by existing Fed25 eral power systems to users of transmission projects 
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1 funded pursuant to this section shall be treated as 

2 revenue to the existing power system that provided the 

3 ancillary services. 

4 ‘‘(d) CERTIFICATION.— 

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

6 the Western Area Power Administration participates 

7 pursuant to this section, the Administrator shall cer8 tify, prior to committing funds for any such project, 

9 that— 

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

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

12 system reliability or operations, or other statu13 tory obligations; and 

14 ‘‘(C) it is reasonable to expect that the pro15 ceeds from the project shall be adequate to make 

16 repayment of the loan. 

17 ‘‘(2) FORGIVENESS OF BALANCES.— 

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

19 useful life of a project, there is a remaining bal20 ance owed to the Treasury under this section, the 

21 balance shall be forgiven. 

22 ‘‘(B) UNCONSTRUCTED PROJECTS.—Funds 

23 expended to study projects that are considered 

24 pursuant to this section but that are not con25 structed shall be forgiven. 
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1 ‘‘(C) NOTIFICATION.—The Administrator 

2 shall notify the Secretary of such amounts as are 

3 to be forgiven under this paragraph. 

4 ‘‘(e) PUBLIC PROCESSES.— 

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

8 and policies that implement the authority granted by 

9 this section. 

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

11 selecting potential projects to be funded under this 

12 section, the Administrator shall seek Requests For In13 terest from entities interested in identifying potential 

14 projects through one or more notices published in the 

15 Federal Register.’’ 

16 SEC. 403. TECHNICAL CORRECTIONS TO THE ENERGY

17 INDEPENDENCE AND SECURITY ACT OF 2007. Title XIII of 

18 the Energy Independence and Security Act of 2007 (15 

19 U.S.C. 17381 and following) is amended as follows: 

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

21 1304(b)(3) to read as follows: 

22 ‘‘(A) IN GENERAL.—In carrying out the ini23 tiative, the Secretary shall provide financial sup24 port to smart grid demonstration projects in25 cluding those in rural areas and/or areas where 
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1 the majority of generation and transmission as2 sets are controlled by a tax-exempt entity.’’. 

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

4 1304(b)(3) to read as follows: 

5 ‘‘(C) FEDERAL SHARE OF COST OF TECH6 NOLOGY INVESTMENTS.—The Secretary shall pro7 vide to an electric utility described in subpara8 graph (B) or to other parties financial assistance 

9 for use in paying an amount equal to not more 

10 than 50 percent of the cost of qualifying ad11 vanced grid technology investments made by the 

12 electric utility or other party to carry out a 

13 demonstration project.’’. 

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

15 1304(b)(3)(D) as follows: 

16 ‘‘(E) AVAILABILITY OF DATA.—The 

17 Secretary shall establish and maintain a 

18 smart grid information clearinghouse in a 

19 timely manner which will make data from 

20 smart grid demonstration projects and other 

21 sources available to the public. As a condi22 tion of receiving financial assistance under 

23 this subsection, a utility or other partici24 pant in a smart grid demonstration project 

25 shall provide such information as the Sec-
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1 retary may require to become available 

2 through the smart grid information clear3 inghouse in the form and within the time4 frames as directed by the Secretary. The 

5 Secretary shall assure that business propri6 etary information and individual customer 

7 information is not included in the informa8 tion made available through the clearing9 house.’’. 

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

11 1304(c) to read as follows: 

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

13 may be necessary.’’. 

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

15 by striking ‘‘reimbursement of one-fifth (20 percent)’’ 

16 and inserting ‘‘grants of up to one-half (50 percent)’’. 

17 (6) By striking the last sentence of subsection 

18 (b)(9) of section 1306. 

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

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

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

22 to read as follows: 

23 ‘‘(e) The Secretary shall— 

24 ‘‘(1) establish within 60 days after the enactment 

25 of the American Recovery and Reinvestment Act of 
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1 2009 procedures by which applicants can obtain 

2 grants of not more than one-half of their documented 

3 costs; 

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

5 no duplication or multiple payment for the same in6 vestment or costs, that the grant goes to the party 

7 making the actual expenditures for Qualifying Smart 

8 Grid Investments, and that the grants made have sig9 nificant effect in encouraging and facilitating the de10 velopment of a smart grid; 

11 ‘‘(3) maintain public records of grants made, re12 cipients, and qualifying Smart Grid investments 

13 which have received grants; 

14 ‘‘(4) establish procedures to provide advance 

15 payment of moneys up to the full amount of the grant 

16 award; and 

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

18 grants for investments that do not qualify in the rea19 sonable judgment of the Secretary.’’. 

20 SEC. 404. TEMPORARY STIMULUS LOAN GUARANTEE

21 PROGRAM. (a) AMENDMENT.—Title XVII of the Energy Pol22 icy Act of 2005 (42 U.S.C. 16511 et seq.) is amended by 

23 adding the following at the end: 
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1 ‘‘SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOY2 MENT OF RENEWABLE ENERGY AND ELEC3 TRIC POWER TRANSMISSION PROJECTS. 

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

5 Secretary may make guarantees under this section only for 

6 commercial technology projects under subsection (b) that 

7 will reach financial close not later than September 30, 

8 2012. 

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

10 categories shall be eligible for support under this section: 

11 ‘‘(1) Renewable energy systems. 

12 ‘‘(2) Electric power transmission systems. 

13 ‘‘(c) AUTHORIZATION LIMIT.—There are authorized to 

14 be appropriated $10,000,000,000 to the Secretary for fiscal 

15 years 2009 through 2012 to provide the cost of guarantees 

16 made under section. 

17 ‘‘(d) SUNSET.—The authority to enter into guarantees 

18 under this section shall expire on September 30, 2012.’’. 

19 (b) TABLE OF CONTENTS AMENDMENT.—The table of 

20 contents for the Energy Policy Act of 2005 is amended by 

21 inserting after the item relating to section 1704 the fol22 lowing new item: 

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

electric power transmission projects.’’. 

23 SEC. 405. WEATHERIZATION PROGRAM AMENDMENTS. 

24 (a) INCOME LEVEL.—Section 412(7) of the Energy Con-
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1 servation and Production Act (42 U.S.C. 6862(7)) is 

2 amended by striking ‘‘150 percent’’ both places it appears 

3 and inserting ‘‘200 percent’’. 

4 (b) ASSISTANCE LEVEL PER DWELLING UNIT.—Sec5 tion 415(c)(1) of the Energy Conservation and Production 

6 Act (42 U.S.C. 6865(c)(1)) is amended by striking ‘‘$2,500’’ 

7 and inserting ‘‘$5,000’’. 

8 (c) TRAINING AND TECHNICAL ASSISTANCE.—Section 

9 416 of the Energy Conservation and Production Act (42 

10 U.S.C. 6866) is amended by striking ‘‘10 percent’’ and in11 serting ‘‘up to 20 percent’’. 

12 SEC. 406. TECHNICAL CORRECTIONS TO PUBLIC UTIL13 ITY REGULATORY POLICIES ACT OF 1978. (a) Section 

14 111(d) of the Public Utility Regulatory Policies Act of 1978 

15 (16 U.S.C. 2621(d)) is amended by redesignating para16 graph (16) relating to consideration of smart grid invest17 ments (added by section 1307(a) of Public Law 110–140) 

18 as paragraph (18) and by redesignating paragraph (17) re19 lating to smart grid information (added by section 1308(a) 

20 of Public Law 110–140) as paragraph (19). 

21 (b) Subsections (b) and (d) of section 112 of the Public 

22 Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) 

23 are each amended by striking ‘‘(17) through (18)’’ in each 

24 place it appears and inserting ‘‘(16) through (19)’’. 
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1 TITLE V—FINANCIAL SERVICES AND GENERAL 

2 GOVERNMENT 

3 DEPARTMENT OF THE TREASURY 

4 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

5 FUND PROGRAM ACCOUNT

6 For an additional amount for ‘‘Community Develop7 ment Financial Institutions Fund Program Account’’, 

8 $250,000,000, to remain available until September 30, 

9 2010, for qualified applicants under the fiscal year 2008 

10 and 2009 funding rounds of the Community Development 

11 Financial Institutions Program, of which up to 

12 $20,000,000 may be for financial assistance, technical as13 sistance, training and outreach programs, including up to 

14 $5,000 for subsistence expenses, designed to benefit Native 

15 American, Native Hawaiian, and Alaskan Native commu16 nities and provided primarily through qualified commu17 nity development lender organizations with experience and 

18 expertise in community development banking and lending 

19 in Indian country, Native American organizations, tribes 

20 and tribal organizations and other suitable providers and 

21 up to $5,000,000 may be used for administrative expenses: 

22 Provided, That for purposes of the fiscal year 2008 and 

23 2009 funding rounds, the following statutory provisions are 

24 hereby waived: 12 U.S.C. 4707(e) and 12 U.S.C. 4707(d): 

25 Provided further, That no awardee, together with its sub-
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1 sidiaries and affiliates, may be awarded more than 15 per2 cent of the aggregate funds available during each of fiscal 

3 years 2008 and 2009 from the Community Development Fi4 nancial Institutions Program: Provided further, That no 

5 later than 60 days after the date of enactment of this Act, 

6 the Department of the Treasury shall submit to the Commit7 tees on Appropriations of the House of Representatives and 

8 the Senate a detailed expenditure plan for funds provided 

9 under this heading. 

10 DISTRICT OF COLUMBIA 

11 FEDERAL PAYMENTS

12 FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA WATER

13 AND SEWER AUTHORITY

14 For a Federal payment to the District of Columbia 

15 Water and Sewer Authority, $125,000,000, to remain avail16 able until September 30, 2010, to continue implementation 

17 of the Combined Sewer Overflow Long-Term Control Plan: 

18 Provided, That the District of Columbia Water and Sewer 

19 Authority provide a 100 percent match for this payment: 

20 Provided further, That no later than 60 days after the date 

21 of enactment of this Act, the District of Columbia Water 

22 and Sewer Authority shall submit to the Committees on Ap23 propriations of the House of Representatives and the Senate 

24 a detailed expenditure plan for funds provided under this 

25 heading: Provided further, That such expenditure plan shall 
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1 include a description of each specific project, how specific 

2 projects will further the objectives of the Long-Term Control 

3 Plan, and all funding sources for each project. 

4 GENERAL SERVICES ADMINISTRATION 

5 REAL PROPERTY ACTIVITIES

6 FEDERAL BUILDINGS FUND

7 LIMITATIONS ON AVAILABILITY OF REVENUE

8 (INCLUDING TRANSFER OF FUNDS)

9 For an additional amount to be deposited in the Fed10 eral Buildings Fund, $5,548,000,000, to carry out the pur11 poses of the Fund, of which not less than $1,400,000,000 

12 shall be available for Federal buildings and United States 

13 courthouses, not less than $1,200,000,000 shall be available 

14 for border stations, and not less than $2,500,000,000 shall 

15 be available for measures necessary to convert GSA facili16 ties to High-Performance Green Buildings, as defined in 

17 section 401 of Public Law 110–140: Provided, That not to 

18 exceed $108,000,000 of the amounts provided under this 

19 heading may be expended for rental of space, related to leas20 ing of temporary space in connection with projects funded 

21 under this heading: Provided further, That not to exceed 

22 $127,000,000 of the amounts provided under this heading 

23 may be expended for building operations, for the adminis24 trative costs of completing projects funded under this head25 ing: Provided further, That not less than $5,000,000,000 of 
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1 the funds provided under this heading shall be obligated by 

2 September 30, 2010: Provided further, That the Adminis3 trator of General Services is authorized to initiate design, 

4 construction, repair, alteration, and other projects through 

5 existing authorities of the Administrator: Provided further, 

6 That the General Services Administration shall submit a 

7 detailed plan, by project, regarding the use of funds made 

8 available in this Act to the Committees on Appropriations 

9 of the House of Representatives and the Senate within 60 

10 days of enactment of this Act: Provided further, That of 

11 the amounts provided for converting GSA facilities to High12 Performance Green Buildings, $4,000,000 shall be trans13 ferred to and merged with ‘‘Government-Wide Policy’’, for 

14 carrying out the provisions of section 436 of the Energy 

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

16 140), establishing an Office of Federal High-Performance 

17 Green Buildings, to remain available until September 30, 

18 2010: Provided further, That within the overall amount to 

19 be deposited into the Fund, $448,000,000 shall remain 

20 available until September 30, 2011, for the development and 

21 construction of the headquarters for the Department of 

22 Homeland Security, except that none of the preceding pro23 visos shall apply to amounts made available under this pro24 viso. 
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1 ENERGY-EFFICIENT FEDERAL MOTOR VEHICLE FLEET

2 PROCUREMENT

3 For capital expenditures and necessary expenses of ac4 quiring motor vehicles with higher fuel economy, including: 

5 hybrid vehicles; neighborhood electric vehicles; electric vehi6 cles; and commercially-available, plug-in hybrid vehicles, 

7 $300,000,000, to remain available until September 30, 

8 2011. 

9 OFFICE OF INSPECTOR GENERAL

10 For an additional amount for the Office of the Inspec11 tor General, to remain available until September 30, 2011, 

12 $2,000,000 and an additional $5,000,000 for such purposes, 

13 to remain available until September 30, 2012. 

14 RECOVERY ACT ACCOUNTABILITY AND 

15 TRANSPARENCY BOARD 

16 For necessary expenses of the Recovery Act Account17 ability and Transparency Board to carry out the provisions 

18 of title XV of this Act, $7,000,000, to remain available until 

19 September 30, 2010. 

20 SMALL BUSINESS ADMINISTRATION 

21 SALARIES AND EXPENSES

22 For an additional amount, to remain available until 

23 September 30, 2010, $84,000,000, of which $24,000,000 is 

24 for marketing, management, and technical assistance under 

25 section 7(m) of the Small Business Act (15 U.S.C. 
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1 636(m)(4)) by intermediaries that make microloans under 

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

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

4 title, and of which $20,000,000 is for improving, stream5 lining, and automating information technology systems re6 lated to lender processes and lender oversight: Provided, 

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

8 this Act, the Small Business Administration shall submit 

9 to the Committees on Appropriations of the House of Rep10 resentatives and the Senate a detailed expenditure plan for 

11 funds provided under the heading ‘‘Small Business Admin12 istration’’ in this Act. 

13 OFFICE OF INSPECTOR GENERAL

14 For an additional amount for the Office of Inspector 

15 General in carrying out the provisions of the Inspector Gen16 eral Act of 1978, $10,000,000, to remain available until 

17 September 30, 2011. 

18 SURETY BOND GUARANTEES REVOLVING FUND

19 For additional capital for the Surety Bond Guarantees 

20 Revolving Fund, authorized by the Small Business Invest21 ment Act of 1958, $15,000,000, to remain available until 

22 expended. 

23 BUSINESS LOANS PROGRAM ACCOUNT

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

25 $6,000,000, to remain available until September 30, 2010, 
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1 and for an additional amount for the cost of guaranteed 

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

3 30, 2010: Provided, That of the amount for the cost of guar4 anteed loans, $515,000,000 shall be for loan subsidies and 

5 loan modifications for loans to small business concerns au6 thorized in section 501(a) of this title; and $100,000,000 

7 shall be for loan subsidies and loan modifications for loans 

8 to small business concerns authorized in section 501(b) of 

9 this title: Provided further, That such costs, including the 

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

11 502 of the Congressional Budget Act of 1974. 

12 ADMINISTRATIVE PROVISIONS—SMALL BUSINESS

13 ADMINISTRATION

14 SEC. 501. ECONOMIC STIMULUS FOR SMALL BUSINESS

15 CONCERNS. (a) TEMPORARY FEE ELIMINATION FOR THE

16 7(a) LOAN PROGRAM.—Until September 30, 2010, and to 

17 the extent that the cost of such elimination of fees is offset 

18 by appropriations, with respect to each loan guaranteed 

19 under section 7(a) of the Small Business Act (15 U.S.C. 

20 636(a)) for which the application is approved on or after 

21 the date of enactment of this Act, the Administrator shall— 

22 (1) in lieu of the fee otherwise applicable under 

23 section 7(a)(23)(A) of the Small Business Act (15 

24 U.S.C. 636(a)(23)(A)), collect no fee; and 
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1 (2) in lieu of the fee otherwise applicable under 

2 section 7(a)(18)(A) of the Small Business Act (15 

3 U.S.C. 636(a)(18)(A)), collect no fee. 

4 (b) TEMPORARY FEE ELIMINATION FOR THE 504 LOAN

5 PROGRAM.— 

6 (1) IN GENERAL.—Until September 30, 2010, 

7 and to the extent the cost of such elimination in fees 

8 is offset by appropriations, with respect to each 

9 project or loan guaranteed by the Administrator 

10 under title V of the Small Business Investment Act of 

11 1958 (15 U.S.C. 695 et seq.) for which an application 

12 is approved or pending approval on or after the date 

13 of enactment of this Act— 

14 (A) the Administrator shall, in lieu of the 

15 fee otherwise applicable under section 503(d)(2) 

16 of the Small Business Investment Act of 1958 

17 (15 U.S.C. 697(d)(2)), collect no fee; 

18 (B) a development company shall, in lieu of 

19 the processing fee under section 120.971(a)(1) of 

20 title 13, Code of Federal Regulations (relating to 

21 fees paid by borrowers), or any successor thereto, 

22 collect no fee. 

23 (2) REIMBURSEMENT FOR WAIVED FEES.— 

24 (A) IN GENERAL.—To the extent that the 

25 cost of such payments is offset by appropria-
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1 tions, the Administrator shall reimburse each de2 velopment company that does not collect a proc3 essing fee pursuant to paragraph (1)(B). 

4 (B) AMOUNT.—The payment to a develop5 ment company under subparagraph (A) shall be 

6 in an amount equal to 1.5 percent of the net de7 benture proceeds for which the development com8 pany does not collect a processing fee pursuant 

9 to paragraph (1)(B). 

10 (c) TEMPORARY FEE ELIMINATION OF LENDER OVER11 SIGHT FEES.—Until September 30, 2010, and to the extent 

12 the cost of such elimination in fees is offset by appropria13 tions, the Administrator shall, in lieu of the fee otherwise 

14 applicable under section 5(b)(14) of the Small Business Act 

15 (15 U.S.C. 634(b)(14)), collect no fee. 

16 (d) APPLICATION OF FEE ELIMINATIONS.—The Ad17 ministrator shall eliminate fees under subsections (a), (b), 

18 and (c) until the amount provided for such purposes, as 

19 applicable, under the headings ‘‘Salaries and Expenses’’ 

20 and ‘‘Business Loans Program Account’’ under the heading 

21 ‘‘Small Business Administration’’ under this Act are ex22 pended. 

23 SEC. 502. FINANCIAL ASSISTANCE PROGRAM IM24 PROVEMENTS. (a) 7(a) LOAN MAXIMUM AMOUNT.—Section 

25 7(a)(3)(A) of the Small Business Act (15 U.S.C. 
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1 636(a)(3)(A)) is amended by striking ‘‘$1,500,000 (or if the 

2 gross loan amount would exceed $2,000,000)’’ and inserting 

3 ‘‘$2,250,000 (or if the gross loan amount would exceed 

4 $3,000,000)’’. 

5 (b) SMALL BUSINESS INVESTMENT COMPANIES.— 

6 (1) MAXIMUM LEVERAGE.—Section 303(b) of the 

7 Small Business Investment Act of 1958 (15 U.S.C. 

8 683(b)) is amended— 

9 (A) in paragraph (2), by striking subpara10 graphs (A), (B), and (C) and inserting the fol11 lowing: 

12 ‘‘(A) IN GENERAL.—The maximum amount 

13 of outstanding leverage made available to any 1 

14 company licensed under section 301(c) may not 

15 exceed the lesser of— 

16 ‘‘(i) 300 percent of the private capital 

17 of the company; or 

18 ‘‘(ii) $150,000,000. 

19 ‘‘(B) MULTIPLE LICENSES UNDER COMMON

20 CONTROL.—The maximum amount of out21 standing leverage made available to 2 or more 

22 companies licensed under section 301(c) that are 

23 commonly controlled (as determined by the Ad24 ministrator) may not exceed $225,000,000. 
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1 ‘‘(C) INVESTMENTS IN LOW-INCOME GEO2 GRAPHIC AREAS.— 

3 ‘‘(i) IN GENERAL.—The maximum 

4 amount of outstanding leverage made avail5 able to— 

6 ‘‘(I) any 1 company described in 

7 clause (ii) may not exceed the lesser 

8 of— 

9 ‘‘(aa) 300 percent of private 

10 capital of the company; or 

11 ‘‘(bb) $175,000,000; and 

12 ‘‘(II) 2 or more companies de13 scribed in clause (ii) that are com14 monly controlled (as determined by the 

15 Administrator) may not exceed 

16 $250,000,000. 

17 ‘‘(ii) APPLICABILITY.—A company de18 scribed in this clause is a company licensed 

19 under section 301(c) that certifies in writ20 ing that not less than 50 percent of the dol21 lar amount of investments of that company 

22 shall be made in companies that are located 

23 in a low-income geographic area (as that 

24 term is defined in section 351).’’; and 

25 (B) by striking paragraph (4). 
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1 (2) INVESTMENTS IN SMALLER ENTERPRISES.— 

2 Section 303(d) of the Small Business Investment Act 

3 of 1958 (15 U.S.C. 683(d)) is amended to read as fol4 lows: 

5 ‘‘(d) INVESTMENTS IN SMALLER ENTERPRISES.—The 

6 Administrator shall require each licensee, as a condition of 

7 approval of an application for leverage, to certify in writ8 ing that not less than 25 percent of the aggregate dollar 

9 amount of financings of that licensee shall be provided to 

10 smaller enterprises.’’. 

11 (3) MAXIMUM INVESTMENT IN A COMPANY.—Sec12 tion 306(a) of the Small Business Investment Act of 

13 1958 (15 U.S.C. 686(a)) is amended by striking ‘‘20 

14 per centum’’ and inserting ‘‘30 percent’’. 

15 (c) MAXIMUM 504 LOAN SIZE.—Section 502(2)(A) of 

16 the Small Business Investment Act of 1958 (15 U.S.C. 

17 696(2)(A)) is amended— 

18 (1) in clause (i), by striking ‘‘$1,500,000’’ and 

19 inserting ‘‘$3,000,000’’; 

20 (2) in clause (ii), by striking ‘‘$2,000,000’’ and 

21 inserting ‘‘$3,500,000’’; and 

22 (3) in clause (iii), by striking ‘‘$4,000,000’’ and 

23 inserting ‘‘$5,500,000’’. 
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1 SEC. 503. LOW-INTEREST REFINANCING. Section 502 

2 of the Small Business Investment Act of 1958 (15 U.S.C. 

3 696) is amended by adding at the end the following: 

4 ‘‘(7) PERMISSIBLE DEBT FINANCING.—A financ5 ing under this title may include refinancing of exist6 ing indebtedness, in an amount not to exceed 50 per7 cent of the projected cost of the project financed under 

8 this title, if— 

9 ‘‘(A) the project financed under this title in10 volves the expansion of a small business concern; 

11 ‘‘(B) the existing indebtedness is 

12 collateralized by fixed assets; 

13 ‘‘(C) the existing indebtedness was incurred 

14 for the benefit of the small business concern; 

15 ‘‘(D) the proceeds of the existing indebted16 ness were used to acquire land (including a 

17 building situated thereon), to construct or ex18 pand a building thereon, or to purchase equip19 ment; 

20 ‘‘(E) the borrower has been current on all 

21 payments due on the existing indebtedness for 

22 not less than 1 year preceding the proposed date 

23 of refinancing; 

24 ‘‘(F) the financing under this title will pro25 vide better terms or a better rate of interest than 
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1 exists on the existing indebtedness on the pro2 posed date of refinancing; 

3 ‘‘(G) the financing under this title is not 

4 being used to refinance any debt guaranteed by 

5 the Government; and 

6 ‘‘(H) the financing under this title will be 

7 used only for— 

8 ‘‘(i) refinancing existing indebtedness; 

9 or 

10 ‘‘(ii) costs relating to the project fi11 nanced under this title.’’. 

12 SEC. 504. DEFINITIONS. Under the heading ‘‘Small 

13 Business Administration’’ in this title— 

14 (1) the terms ‘‘Administration’’ and ‘‘Adminis15 trator’’ mean the Small Business Administration and 

16 the Administrator thereof, respectively; 

17 (2) the term ‘‘development company’’ has the 

18 meaning given the term ‘‘development companies’’ in 

19 section 103 of the Small Business Investment Act of 

20 1958 (15 U.S.C. 662); and 

21 (3) the term ‘‘small business concern’’ has the 

22 same meaning as in section 3 of the Small Business 

23 Act (15 U.S.C. 632). 
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1 SEC. 505. SURETY BONDS. 

2 (a) MAXIMUM BOND AMOUNT.—Section 411(a)(1) of 

3 the Small Business Investment Act of 1958 (15 U.S.C. 

4 694b(a)(1)) is amended— 

5 (1) by inserting ‘‘(A)’’ after ‘‘(1)’’; 

6 (2) by striking ‘‘$2,000,000’’ and inserting 

7 ‘‘$5,000,000’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(B) The Administrator may guarantee a surety under 

10 subparagraph (A) for a total work order or contract amount 

11 that does not exceed $10,000,000, if a contracting officer 

12 of a Federal agency certifies that such a guarantee is nec13 essary.’’. 

14 (b) SIZE STANDARDS.—Section 410 of the Small Busi15 ness Investment Act of 1958 (15 U.S.C. 694a) is amended 

16 by adding at the end the following: 

17 ‘‘(9) Notwithstanding any other provision of law 

18 or any rule, regulation, or order of the Administra19 tion, for purposes of sections 410, 411, and 412 the 

20 term ‘small business concern’ means a business con21 cern that meets the size standard for the primary in22 dustry in which such business concern, and the affili23 ates of such business concern, is engaged, as deter24 mined by the Administrator in accordance with the 

25 North American Industry Classification System.’’. 
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1 (c) SUNSET.—The amendments made by this section 

2 shall remain in effect until September 30, 2010. 

3 SEC. 506.—OFFICE OF INSPECTOR GENERAL. For an 

4 additional amount for ‘‘Treasury Office of Inspector Gen5 eral for Tax Administration’’, $7,000,000, to remain avail6 able until September 30, 2012, for oversight and audit of 

7 programs grants and activities funded under this title. 

8 TITLE VI—DEPARTMENT OF HOMELAND 

9 SECURITY 

10 DEPARTMENT OF HOMELAND SECURITY 

11 OFFICE OF THE UNDER SECRETARY FOR MANAGEMENT

12 For an additional amount for the ‘‘Office of the Under 

13 Secretary for Management’’, $198,000,000, to remain avail14 able until September 30, 2011, solely for planning, design, 

15 and construction costs, including site security, information 

16 technology infrastructure, fixtures, and related costs to con17 solidate the Department of Homeland Security head18 quarters: Provided, That no later than 60 days after the 

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

20 Security, in consultation with the Administrator of General 

21 Services, shall submit to the Committees on Appropriations 

22 of the Senate and the House of Representatives a plan for 

23 the expenditure of these funds. 
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1 OFFICE OF INSPECTOR GENERAL

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

3 General’’, $5,000,000, to remain available until September 

4 30, 2012, for oversight and audit of programs, grants, and 

5 projects funded under this title. 

6 U.S. CUSTOMS AND BORDER PROTECTION

7 SALARIES AND EXPENSES

8 For an additional amount for ‘‘Salaries and Ex9 penses’’, $198,000,000, to remain available until September 

10 30, 2010, of which $100,800,000 shall be for the procure11 ment and deployment of non-intrusive inspection systems 

12 to improve port security; and of which $97,200,000 shall 

13 be for procurement and deployment of tactical communica14 tions equipment and radios: Provided, That no later than 

15 45 days after the date of enactment of this Act, the Sec16 retary of Homeland Security shall submit to the Commit17 tees on Appropriations of the Senate and the House of Rep18 resentatives a plan for expenditure of these funds. 

19 BORDER SECURITY FENCING, INFRASTRUCTURE, AND

20 TECHNOLOGY

21 For an additional amount for ‘‘Border Security Fenc22 ing, Infrastructure, and Technology’’, $200,000,000, to re23 main available until September 30, 2010, for expedited de24 velopment and deployment of border security technology on 

25 the Southwest border: Provided, That no later than 45 days 
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1 after the date of enactment of this Act, the Secretary of 

2 Homeland Security shall submit to the Committees on Ap3 propriations of the Senate and the House of Representatives 

4 a plan for expenditure of these funds. 

5 CONSTRUCTION

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

7 $800,000,000, to remain available until expended, solely for 

8 planning, management, design, alteration, and construc9 tion of U.S. Customs and Border Protection owned land 

10 border ports of entry: Provided, That no later than 45 days 

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

12 Homeland Security shall submit to the Committees on Ap13 propriations of the Senate and the House of Representatives 

14 a plan for expenditure of these funds. 

15 U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT

16 AUTOMATION MODERNIZATION

17 For an additional amount for ‘‘Automation Mod18 ernization’’, $27,800,000, to remain available until Sep19 tember 30, 2010, for the procurement and deployment of 

20 tactical communications equipment and radios: Provided, 

21 That no later than 45 days after the date of enactment of 

22 this Act, the Secretary of Homeland Security shall submit 

23 to the Committees on Appropriations of the Senate and the 

24 House of Representatives a plan for expenditure of these 

25 funds. 
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1 TRANSPORTATION SECURITY ADMINISTRATION

2 AVIATION SECURITY

3 For an additional amount for ‘‘Aviation Security’’, 

4 $1,000,000,000, to remain available until September 30, 

5 2010, for procurement and installation of checked baggage 

6 explosives detection systems and checkpoint explosives detec7 tion equipment: Provided, That no later than 45 days after 

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

9 Security shall submit to the Committees on Appropriations 

10 of the Senate and the House of Representatives a plan for 

11 the expenditure of these funds. 

12 COAST GUARD

13 ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS

14 For an additional amount for ‘‘Acquisition, Construc15 tion, and Improvements’’, $450,000,000, to remain avail16 able until September 30, 2010, of which $195,000,000 shall 

17 be for shore facilities and aids to navigation facilities; and 

18 of which $255,000,000 shall be for priority procurements 

19 due to materials and labor cost increases, and to repair, 

20 renovate, assess, or improve vessels: Provided, That amounts 

21 made available for the activities under this heading shall 

22 be available for all necessary expenses related to the over23 sight and management of such activities: Provided further, 

24 That no later than 45 days after the date of enactment of 

25 this Act, the Secretary of Homeland Security shall submit 
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1 to the Committees on Appropriations of the Senate and the 

2 House of Representatives a plan for the expenditure of these 

3 funds. 

4 ALTERATION OF BRIDGES

5 For an additional amount for ‘‘Alteration of Bridges’’, 

6 $240,400,000, to remain available until September 30, 

7 2010, for alteration or removal of obstructive bridges, as 

8 authorized by section 6 of the Truman-Hobbs Act (33 

9 U.S.C. 516): Provided, That no later than 45 days after 

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

11 Security shall submit to the Committees on Appropriations 

12 of the Senate and the House of Representatives a plan for 

13 the expenditure of these funds. 

14 FEDERAL EMERGENCY MANAGEMENT AGENCY

15 MANAGEMENT AND ADMINISTRATION

16 For an additional amount for ‘‘Management and Ad17 ministration’’, $6,000,000 for the acquisition of commu18 nications response vehicles to be deployed in response to a 

19 disaster or a national security event. 

20 STATE AND LOCAL PROGRAMS

21 For an additional amount for grants, $950,000,000, 

22 to be allocated as follows: 

23 (1) $100,000,000, to remain available until Sep24 tember 30, 2010, for Public Transportation Security 

25 Assistance, Railroad Security Assistance, and Sys-
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1 temwide Amtrak Security Upgrades under sections 

2 1406, 1513, and 1514 of the Implementing Rec3 ommendations of the 9/11 Commission Act of 2007 

4 (Public Law 110–53; 6 U.S.C. 1135, 1163, and 1164). 

5 (2) $100,000,000, to remain available until Sep6 tember 30, 2010, for Port Security Grants in accord7 ance with 46 U.S.C. 70107, notwithstanding 46 

8 U.S.C. 70107(c). 

9 (3) $250,000,000, to remain available until Sep10 tember 30, 2010, for upgrading, modifying, or con11 structing emergency operations centers under section 

12 614 of the Robert T. Stafford Disaster Relief and 

13 Emergency Assistance Act, notwithstanding section 

14 614(c) of that Act or for upgrading, modifying, or 

15 constructing State and local fusion centers as defined 

16 by section 210A(j)(1) of the Homeland Security Act 

17 of 2002 (6 U.S.C. 124h(j)(1)). 

18 (4) $500,000,000 for construction to upgrade or 

19 modify critical infrastructure, as defined in section 

20 1016(e) of the USA PATRIOT Act of 2001 (42 U.S.C. 

21 5195c(e)), to mitigate consequences related to poten22 tial damage from all-hazards: Provided, That funds 

23 in this paragraph shall remain available until Sep24 tember 30, 2011: Provided further, That 5 percent 

25 shall be for program administration: Provided fur-
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1 ther, That no later than 60 days after the date of en2 actment of this Act, the Secretary of Homeland Secu3 rity shall submit to the Committees on Appropria4 tions of the Senate and the House of Representatives 

5 a plan for expenditure of these funds. 

6 FIREFIGHTER ASSISTANCE GRANTS

7 For an additional amount for competitive grants, 

8 $500,000,000, to remain available until September 30, 

9 2010, for modifying, upgrading, or constructing State and 

10 local fire stations: Provided, That up to 5 percent shall be 

11 for program administration: Provided further, That no 

12 grant shall exceed $15,000,000. 

13 DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

14 Notwithstanding section 417(b) of the Robert T. Staf15 ford Disaster Relief and Emergency Assistance Act, the 

16 amount of any such loan issued pursuant to this section 

17 for major disasters occurring in calendar year 2008 may 

18 exceed $5,000,000, and may be equal to not more than 50 

19 percent of the annual operating budget of the local govern20 ment in any case in which that local government has suf21 fered a loss of 25 percent or more in tax revenues: Provided, 

22 That the cost of modifying such loans shall be as defined 

23 in section 502 of the Congressional Budget Act of 1974 (2 

24 U.S.C. 661a). 
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1 EMERGENCY FOOD AND SHELTER

2 For an additional amount to carry out the emergency 

3 food and shelter program pursuant to title III of the McKin4 ney-Vento Homeless Assistance Act (42 U.S.C. 11331 et 

5 seq.), $100,000,000: Provided, That total administrative 

6 costs shall not exceed 3.5 percent of the total amount made 

7 available under this heading. 

8 FEDERAL LAW ENFORCEMENT TRAINING CENTER

9 ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND

10 RELATED EXPENSES

11 For an additional amount for ‘‘Acquisition, Construc12 tion, Improvements, and Related Expenses’’, $15,000,000, 

13 to remain available until September 30, 2010, for security 

14 systems and law enforcement upgrades for all Federal Law 

15 Enforcement Training Center facilities: Provided, That no 

16 later than 45 days after the date of enactment of this Act, 

17 the Secretary of Homeland Security shall submit to the 

18 Committees on Appropriations of the Senate and the House 

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

20 GENERAL PROVISIONS—THIS TITLE 

21 SEC. 601. Notwithstanding any other provision of law, 

22 the President shall establish an arbitration panel under the 

23 Federal Emergency Management Agency public assistance 

24 program to expedite the recovery efforts from Hurricanes 

25 Katrina, Rita, Gustav, and Ike within the Gulf Coast Re-
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1 gion. The arbitration panel shall have sufficient authority 

2 regarding the award or denial of disputed public assistance 

3 applications for covered hurricane damage under section 

4 403, 406, or 407 of the Robert T. Stafford Disaster Relief 

5 and Emergency Assistance Act (42 U.S.C. 5170b, 5172, or 

6 5173) for a project the total amount of which is more than 

7 $500,000. 

8 SEC. 602. The Administrator of the Federal Emer9 gency Management Agency may not prohibit or restrict the 

10 use of funds designated under the hazard mitigation grant 

11 program for damage caused by Hurricanes Katrina and 

12 Rita if the homeowner who is an applicant for assistance 

13 under such program commenced work otherwise eligible for 

14 hazard mitigation grant program assistance under section 

15 404 of the Robert T. Stafford Disaster Relief and Emer16 gency Assistance Act (42 U.S.C. 5170c) without approval 

17 in writing from the Administrator. 

18 TITLE VII—INTERIOR, ENVIRONMENT, AND 

19 RELATED AGENCIES 

20 DEPARTMENT OF THE INTERIOR 

21 BUREAU OF LAND MANAGEMENT

22 MANAGEMENT OF LANDS AND RESOURCES

23 For an additional amount for ‘‘Management of Lands 

24 and Resources’’, $135,000,000, to remain available until 

25 September 30, 2010. 
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1 CONSTRUCTION

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

3 $180,000,000, to remain available until September 30, 

4 2010. 

5 WILDLAND FIRE MANAGEMENT

6 For an additional amount for ‘‘Wildland Fire Man7 agement’’, $15,000,000, to remain available until Sep8 tember 30, 2010. 

9 UNITED STATES FISH AND WILDLIFE SERVICE

10 RESOURCE MANAGEMENT

11 For an additional amount for ‘‘Resource Manage12 ment’’, $165,000,000, to remain available until September 

13 30, 2010. 

14 CONSTRUCTION

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

16 $110,000,000, to remain available until September 30, 

17 2010. 

18 NATIONAL PARK SERVICE

19 OPERATION OF THE NATIONAL PARK SYSTEM

20 For an additional amount for ‘‘Operation of the Na21 tional Park System’’, $158,000,000, to remain available 

22 until September 30, 2010. 
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1 CONSTRUCTION

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

3 $589,000,000, to remain available until September 30, 

4 2010. 

5 UNITED STATES GEOLOGICAL SURVEY

6 SURVEYS, INVESTIGATIONS, AND RESEARCH

7 For an additional amount for ‘‘Surveys, Investiga8 tions, and Research’’, $135,000,000, to remain available 

9 until September 30, 2010. 

10 BUREAU OF INDIAN AFFAIRS

11 OPERATION OF INDIAN PROGRAMS

12 For an additional amount for ‘‘Operation of Indian 

13 Programs’’, $40,000,000, to remain available until Sep14 tember 30, 2010, of which $20,000,000 shall be for the hous15 ing improvement program. 

16 CONSTRUCTION

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

18 $522,000,000, to remain available until September 30, 

19 2010. 

20 INDIAN GUARANTEED LOAN PROGRAM ACCOUNT

21 For an additional amount for ‘‘Indian Guaranteed 

22 Loan Program Account’’, $10,000,000, to remain available 

23 until September 30, 2010. 
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1 DEPARTMENTAL OFFICES 

2 INSULAR AFFAIRS

3 ASSISTANCE TO TERRITORIES

4 For an additional amount for ‘‘Assistance to Terri5 tories’’, $62,000,000, to remain available until September 

6 30, 2010. 

7 OFFICE OF INSPECTOR GENERAL

8 SALARIES AND EXPENSES

9 For an additional amount for ‘‘Office of Inspector 

10 General’’, $7,600,000, to remain available until September 

11 30, 2011, and an additional $7,400,000 for such purposes, 

12 to remain available until September 30, 2011. 

13 DEPARTMENT-WIDE PROGRAMS

14 CENTRAL HAZARDOUS MATERIALS FUND

15 For an additional amount for ‘‘Central Hazardous 

16 Materials Fund’’, $20,000,000, to remain available until 

17 September 30, 2010. 

18 ENVIROMENTAL PROTECTION AGENCY 

19 HAZARDOUS SUBSTANCE SUPERFUND

20 (INCLUDING TRANSFERS OF FUNDS)

21 For an additional amount for ‘‘Hazardous Substance 

22 Superfund’’, $600,000,000, to remain available until Sep23 tember 30, 2010, as a payment from general revenues to 

24 the Hazardous Substance Superfund, to carry out remedial 

25 actions: Provided, That the Administrator may retain up 
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1 to 2 percent of the funds appropriated herein for Superfund 

2 remedial actions for program oversight and support pur3 poses, and may transfer those funds to other accounts as 

4 needed. 

5 LEAKING UNDERGROUND STORAGE TANK TRUST FUND

6 PROGRAM

7 For an additional amount for ‘‘Leaking Underground 

8 Storage Tank Trust Fund Program’’, $200,000,0000, to re9 main available until September 30, 2010, for cleanup ac10 tivities: Provided, That none of these funds shall be subject 

11 to cost share requirements. 

12 STATE AND TRIBAL ASSISTANCE GRANTS

13 (INCLUDING TRANSFERS OF FUNDS)

14 For an additional amount for ‘‘State and Tribal As15 sistance Grants’’, $6,400,000,000, to remain available until 

16 September 30, 2010, of which $4,000,000,000 shall be for 

17 making capitalization grants for the Clean Water State Re18 volving Funds under title VI of the Federal Water Pollution 

19 Control Act, as amended; of which $2,000,000,000 shall be 

20 for making capitalization grants for the Drinking Water 

21 State Revolving Fund under section 1452 of the Safe Drink22 ing Water Act, as amended; of which $100,000,000 shall 

23 be available for Brownfields remediation grants pursuant 

24 to section 104(k)(3) of the Comprehensive Environmental 

25 Response, Compensation and Liability Act of 1980, as 
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1 amended; and of which $300,000,000 shall be for Diesel 

2 Emission Reduction Act grants pursuant to title VII, sub3 title G of the Energy Policy Act of 2005, as amended: Pro4 vided, That notwithstanding the priority ranking they 

5 would otherwise receive under each program, priority for 

6 funds appropriated herein for the Clean Water State Re7 volving Funds and Drinking Water State Revolving Funds 

8 (Revolving Funds) shall be allocated to projects that are 

9 ready to proceed to construction within 180 days of enact10 ment of this Act: Provided further, That the Administrator 

11 of the Environmental Protection Agency (Administrator) 

12 may reallocate funds appropriated herein for the Revolving 

13 Funds that are not under binding commitments to proceed 

14 to construction within 180 days of enactment of this Act: 

15 Provided further, That notwithstanding any other provision 

16 of law, financial assistance provided from funds appro17 priated herein for the Revolving Funds may include addi18 tional subsidization, including forgiveness of principal and 

19 negative interest loans: Provided further, That not less than 

20 15 percent of the funds appropriated herein for the Revolv21 ing Funds shall be designated for green infrastructure, 

22 water efficiency improvements or other environmentally in23 novative projects: Provided further, That notwithstanding 

24 the limitation on amounts specified in section 518(c) of the 

25 Federal Water Pollution Control Act, up to a total of 1.5 
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1 percent of the funds appropriated herein for the Clean 

2 Water State Revolving Funds may be reserved by the Ad3 ministrator for tribal grants under section 518(c) of such 

4 Act: Provided further, That section 1452(k) of the Safe 

5 Drinking Water Act shall not apply to amounts appro6 priated herein for the Drinking Water State Revolving 

7 Funds: Provided further, That the Administrator may ex8 ceed the 30 percent limitation on State grants for funds 

9 appropriated herein for Diesel Emission Reduction Act 

10 grants if the Administrator determines such action will ex11 pedite allocation of funds: Provided further, That none of 

12 the funds appropriated herein shall be subject to cost share 

13 requirements: Provided further, That the Administrator 

14 may retain up to 0.25 percent of the funds appropriated 

15 herein for the Clean Water State Revolving Funds and 

16 Drinking Water State Revolving Funds and up to 1.5 per17 cent of the funds appropriated herein for the Diesel Emis18 sion Reduction Act grants program for program oversight 

19 and support purposes and may transfer those funds to other 

20 accounts as needed. 

21 DEPARTMENT OF AGRICULTURE 

22 FOREST SERVICE

23 CAPITAL IMPROVEMENT AND MAINTENANCE

24 For an additional amount for ‘‘Capital Improvement 

25 and Maintenance’’, $650,000,000, to remain available until 
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1 September 30, 2010, which shall include remediation of 

2 abandoned mine sites and support costs necessary to carry 

3 out this work. 

4 WILDLAND FIRE MANAGEMENT

5 For an additional amount for ‘‘Wildland Fire Man6 agement’’, $485,000,000, to remain available until Sep7 tember 30, 2010, for hazardous fuels reduction and hazard 

8 mitigation activities in areas at high risk of catastrophic 

9 wildfire, of which $260,000,000 is available for work on 

10 State and private lands using all the authorities available 

11 to the Forest Service: Provided, That of the funds provided 

12 for State and private land fuels reduction activities, up to 

13 $50,000,000 may be used to make grants for the purpose 

14 of creating incentives for increased use of biomass from na15 tional forest lands. 

16 DEPARTMENT OF HEALTH AND HUMAN 

17 SERVICES 

18 INDIAN HEALTH SERVICE

19 INDIAN HEALTH SERVICES

20 For an additional amount for ‘‘Indian Health Serv21 ices’’, $135,000,000, to remain available until September 

22 30, 2010, of which $50,000,000 is for contract health serv23 ices; and of which $85,000,000 is for health information 

24 technology: Provided, That the amount made available for 

25 health information technology activities may be used for 
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1 both telehealth services development and related infrastruc2 ture requirements that are typically funded through the 

3 ‘‘Indian Health Facilities’’ account: Provided further, That 

4 notwithstanding any other provision of law, health infor5 mation technology funds provided within this title shall be 

6 allocated at the discretion of the Director of the Indian 

7 Health Service. 

8 INDIAN HEALTH FACILITIES

9 For an additional amount for ‘‘Indian Health Facili10 ties’’, $410,000,000, to remain available until September 

11 30, 2010: Provided, That for the purposes of this Act, spend12 ing caps included within the annual appropriation for ‘‘In13 dian Health Facilities’’ for the purchase of medical equip14 ment shall not apply. 

15 SMITHSONIAN INSTITUTION 

16 FACILITIES CAPITAL

17 For an additional amount for ‘‘Facilities Capital’’, 

18 $75,000,000, to remain available until September 30, 2010. 

19 GENERAL PROVISIONS—THIS TITLE 

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

21 each agency receiving funds under this title shall submit 

22 a general plan for the expenditure of such funds to the 

23 House and Senate Committees on Appropriations. 

24 (b) Within 90 days of enactment of this Act, each agen25 cy receiving funds under this title shall submit to the Com-
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1 mittees a report containing detailed project level informa2 tion associated with the general plan submitted pursuant 

3 to subsection (a). 

4 SEC. 702. In carrying out the work for which funds 

5 in this title are being made available, the Secretary of the 

6 Interior and the Secretary of Agriculture may utilize the 

7 Public Lands Corps, Youth Conservation Corps, Job Corps 

8 and other related partnerships with Federal, State, local, 

9 tribal or non-profit groups that serve young adults. 

10 TITLE VIII—DEPARTMENTS OF LABOR, HEALTH 

11 AND HUMAN SERVICES, AND EDUCATION, 

12 AND RELATED AGENCIES 

13 DEPARTMENT OF LABOR 

14 EMPLOYMENT AND TRAINING ADMINISTRATION

15 TRAINING AND EMPLOYMENT SERVICES

16 For an additional amount for ‘‘Training and Employ17 ment Services’’ for activities authorized by the Workforce 

18 Investment Act of 1998 (‘‘WIA’’), $3,250,000,000, which 

19 shall be available on the date of enactment of this Act, as 

20 follows: 

21 (1) $500,000,000 for adult employment and 

22 training activities, including supportive services and 

23 needs-related payments described in section 134(e)(2) 

24 and (3) of the WIA: Provided, That a priority use of 
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1 these funds shall be services to individuals described 

2 in 134(d)(4)(E) of the WIA; 

3 (2) $1,200,000,000 for grants to the States for 

4 youth activities, including summer employment for 

5 youth: Provided, That no portion of such funds shall 

6 be reserved to carry out section 127(b)(1)(A) of the 

7 WIA: Provided further, That for purposes of section 

8 127(b)(1)(C)(iv) of the WIA, funds available for youth 

9 activities shall be allotted as if the total amount 

10 available for youth activities in the fiscal year does 

11 not exceed $1,000,000,000: Provided further, That, 

12 with respect to the youth activities provided with such 

13 funds, section 101(13)(A) of the WIA shall be applied 

14 by substituting ‘‘age 24’’ for ‘‘age 21’’: Provided fur15 ther, That the work readiness performance indicator 

16 described in section 136(b)(2)(A)(ii)(I) of the WIA 

17 shall be the only measure of performance used to as18 sess the effectiveness of youth activities provided with 

19 such funds; 

20 (3) $1,000,000,000 for grants to the States for 

21 dislocated worker employment and training activities; 

22 (4) $200,000,000 for national emergency grants; 

23 (5) $250,000,000 under the dislocated worker na24 tional reserve for a program of competitive grants for 

25 worker training in high growth and emerging indus-
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1 try sectors and assistance under 132(b)(2)(A) of the 

2 WIA: Provided, That the Secretary of Labor shall give 

3 priority when awarding such grants to projects that 

4 prepare workers for careers in energy efficiency and 

5 renewable energy as described in section 171(e)(1)(B) 

6 of the WIA and for careers in the health care sector; 

7 and 

8 (6) $100,000,000 for YouthBuild activities as de9 scribed in section 173A of the WIA: Provided, That 

10 for program years 2008 and 2009, the YouthBuild 

11 program may serve an individual who has dropped 

12 out of high school and re-enrolled in an alternative 

13 school, if that re-enrollment is part of a sequential 

14 service strategy: 

15 Provided, That funds made available in this 

16 paragraph shall remain available through June 30, 

17 2010: Provided further, That a local board may 

18 award a contract to an institution of higher edu19 cation if the local board determines that it would fa20 cilitate the training of multiple individuals in high21 demand occupations, if such contract does not limit 

22 customer choice. 

23 COMMUNITY SERVICE EMPLOYMENT FOR OLDER AMERICANS

24 For an additional amount for ‘‘Community Service 

25 Employment for Older Americans’’ for carrying out title 
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1 V of the Older Americans Act of 1965, $120,000,000, which 

2 shall be available on the date of enactment of this Act and 

3 shall remain available through June 30, 2010: Provided, 

4 That funds shall be allotted within 30 days of such enact5 ment to current grantees in proportion to their allotment 

6 in program year 2008: Provided further, That funds made 

7 available under this heading in this Act may, in accordance 

8 with section 517(c) of the Older Americans Act of 1965, be 

9 recaptured and reobligated. 

10 STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT

11 SERVICE OPERATIONS

12 For an additional amount for ‘‘State Unemployment 

13 Insurance and Employment Service Operations’’ for grants 

14 to States in accordance with section 6 of the Wagner-Peyser 

15 Act, $400,000,000, which may be expended from the Em16 ployment Security Administration account in the Unem17 ployment Trust Fund: Provided, That such funds shall be 

18 available on the date of enactment of this Act and remain 

19 available to the States through September 30, 2010: Pro20 vided further, That $250,000,000 of such funds shall be used 

21 by States for reemployment services for unemployment in22 surance claimants (including the integrated Employment 

23 Service and Unemployment Insurance information tech24 nology required to identify and serve the needs of such 

25 claimants): Provided further, That the Secretary of Labor 
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1 shall establish planning and reporting procedures necessary 

2 to provide oversight of funds used for reemployment serv3 ices. 

4 DEPARTMENTAL MANAGEMENT

5 OFFICE OF JOB CORPS

6 For an additional amount for ‘‘Office of Job Corps’’ 

7 for construction, alteration and repairs of buildings and 

8 other facilities, $160,000,000, which shall remain available 

9 through June 30, 2010: Provided, That the Secretary of 

10 Labor may transfer up to 15 percent of such funds to meet 

11 the operational needs of Job Corps Centers, which may in12 clude training for careers in the energy efficiency, renewable 

13 energy, and environmental protection industries: Provided 

14 further, That not later than 90 days after the date of enact15 ment of this Act, the Secretary shall provide to the Com16 mittee on Appropriations of the House of Representatives 

17 and the Senate an operating plan describing the planned 

18 uses of funds available in this paragraph. 

19 OFFICE OF INSPECTOR GENERAL

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

21 General’’, $3,000,000, which shall remain available through 

22 September 30, 2011, for salaries and expenses necessary for 

23 oversight and audit of programs, grants, and projects fund24 ed in this Act and administered by the Department of 

25 Labor. 
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1 DEPARTMENT OF HEALTH AND HUMAN 

2 SERVICES 

3 HEALTH RESOURCES AND SERVICES ADMINISTRATION

4 HEALTH RESOURCES AND SERVICES

5 For an additional amount for ‘‘Health Resources and 

6 Services’’, $1,958,000,000, which shall remain available 

7 through September 30, 2010, of which $88,000,000 shall be 

8 for necessary expenses related to leasing and renovating a 

9 headquarters building for Public Health Service agencies 

10 and other components of the Department of Health and 

11 Human Services, including renovation and fit-out costs, 

12 and of which $1,870,000,000 shall be for grants for con13 struction, renovation and equipment for health centers re14 ceiving operating grants under section 330 of the Public 

15 Health Service Act, notwithstanding the limitation in sec16 tion 330(e)(3). 

17 CENTERS FOR DISEASE CONTROL AND PREVENTION

18 DISEASE CONTROL, RESEARCH, AND TRAINING

19 For an additional amount for ‘‘Disease Control, Re20 search, and Training’’ for acquisition of real property, 

21 equipment, construction, and renovation of facilities, in22 cluding necessary repairs and improvements to leased lab23 oratories, $412,000,000, which shall remain available 

24 through September 30, 2010: Provided, That notwith25 standing any other provision of law, the Centers for Disease 
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1 Control and Prevention may award a single contract or re2 lated contracts for development and construction of facili3 ties that collectively include the full scope of the project: 

4 Provided further, That the solicitation and contract shall 

5 contain the clause ‘‘availability of funds’’ found at 48 CFR 

6 52.232–18. 

7 NATIONAL INSTITUTES OF HEALTH

8 NATIONAL CENTER FOR RESEARCH RESOURCES

9 For an additional amount for ‘‘National Center for 

10 Research Resources’’, $300,000,000, which shall be available 

11 through September 30, 2010, for shared instrumentation 

12 and other capital research equipment. 

13 OFFICE OF THE DIRECTOR

14 (INCLUDING TRANSFER OF FUNDS)

15 For an additional amount for ‘‘Office of the Director’’, 

16 $2,700,000,000, which shall be available through September 

17 30, 2010: Provided, That $1,350,000,000 shall be trans18 ferred to the Institutes and Centers of the National Insti19 tutes of Health and to the Common Fund established under 

20 section 402A(c)(1) of the Public Health Service Act in pro21 portion to the appropriations otherwise made to such Insti22 tutes, Centers, and Common Fund for fiscal year 2009: Pro23 vided further, That these funds shall be used to support ad24 ditional scientific research and shall be merged with and 

25 be available for the same purposes as the appropriation or 
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1 fund to which transferred: Provided further, That this 

2 transfer authority is in addition to any other transfer au3 thority available to the National Institutes of Health: Pro4 vided further, That none of these funds may be transferred 

5 to ‘‘National Institutes of Health—Buildings and Facili6 ties’’, the Center for Scientific Review, the Center for Infor7 mation Technology, the Clinical Center, the Global Fund 

8 for HIV/AIDS, Tuberculosis and Malaria, or the Office of 

9 the Director (except for the transfer to the Common Fund). 

10 The additional amount available for ‘Office of the Di11 rector’ in the previous sentence shall be increased by 

12 $6,500,000,000: Provided, That a total of $7,850,000,000 

13 shall be transferred pursuant to such sentence: Provided fur14 ther, That any amounts in this sentence shall be designated 

15 as an emergency requirement and necessary to meet emer16 gency needs pursuant to section 204(a) of S. Con. Res. 21 

17 (110th Congress) and section 301(b)(2) of S. Con. Res. 70 

18 (110th Congress), the concurrent resolutions on the budget 

19 for fiscal years 2008 and 2009. 

20 BUILDINGS AND FACILITIES

21 For an additional amount for ‘‘Buildings and Facili22 ties’’, $500,000,000, which shall be available through Sep23 tember 30, 2010, to fund high-priority repair, construction 

24 and improvement projects for National Institutes of Health 
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1 facilities on the Bethesda, Maryland campus and other 

2 agency locations. 

3 AGENCY FOR HEALTHCARE RESEARCH AND QUALITY

4 HEALTHCARE RESEARCH AND QUALITY

5 (INCLUDING TRANSFER OF FUNDS)

6 For an additional amount for ‘‘Healthcare Research 

7 and Quality’’ to carry out titles III and IX of the Public 

8 Health Service Act, part A of title XI of the Social Security 

9 Act, and section 1013 of the Medicare Prescription Drug, 

10 Improvement, and Modernization Act of 2003, 

11 $700,000,000 for comparative clinical effectiveness research, 

12 which shall remain available through September 30, 2010: 

13 Provided, That of the amount appropriated in this para14 graph, $400,000,000 shall be transferred to the Office of the 

15 Director of the National Institutes of Health (‘‘Office of the 

16 Director’’) to conduct or support comparative clinical effec17 tiveness research under section 301 and title IV of the Pub18 lic Health Service Act: Provided further, That funds trans19 ferred to the Office of the Director may be transferred to 

20 the Institutes and Centers of the National Institutes of 

21 Health and to the Common Fund established under section 

22 402A(c)(1) of the Public Health Service Act: Provided fur23 ther, That this transfer authority is in addition to any 

24 other transfer authority available to the National Institutes 

25 of Health: Provided further, That within the amount avail-
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1 able in this paragraph for the Agency for Healthcare Re2 search and Quality, not more than 1 percent shall be made 

3 available for additional full-time equivalents. 

4 In addition, $400,000,000 shall be available for com5 parative clinical effectiveness research to be allocated at the 

6 discretion of the Secretary of Health and Human Services 

7 (‘‘Secretary’’) and shall remain available through Sep8 tember 30, 2010: Provided, That the funding appropriated 

9 in this paragraph shall be used to accelerate the develop10 ment and dissemination of research assessing the compara11 tive clinical effectiveness of health care treatments and 

12 strategies, including through efforts that: (1) conduct, sup13 port, or synthesize research that compares the clinical out14 comes, effectiveness, and appropriateness of items, services, 

15 and procedures that are used to prevent, diagnose, or treat 

16 diseases, disorders, and other health conditions and (2) en17 courage the development and use of clinical registries, clin18 ical data networks, and other forms of electronic health data 

19 that can be used to generate or obtain outcomes data: Pro20 vided further, That the Secretary shall enter into a contract 

21 with the Institute of Medicine, for which no more than 

22 $1,500,000 shall be made available from funds provided in 

23 this paragraph, to produce and submit a report to the Con24 gress and the Secretary by not later than June 30, 2009 

25 that includes recommendations on the national priorities 
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1 for comparative clinical effectiveness research to be con2 ducted or supported with the funds provided in this para3 graph and that considers input from stakeholders: Provided 

4 further, That the Secretary shall consider any recommenda5 tions of the Federal Coordinating Council for Comparative 

6 Clinical Effectiveness Research established by section 802 

7 of this Act and any recommendations included in the Insti8 tute of Medicine report pursuant to the preceding proviso 

9 in designating activities to receive funds provided in this 

10 paragraph and may make grants and contracts with appro11 priate entities, which may include agencies within the De12 partment of Health and Human Services and other govern13 mental agencies, as well as private sector entities, that have 

14 demonstrated experience and capacity to achieve the goals 

15 of comparative clinical effectiveness research: Provided fur16 ther, That the Secretary shall publish information on grants 

17 and contracts awarded with the funds provided under this 

18 heading within a reasonable time of the obligation of funds 

19 for such grants and contracts and shall disseminate re20 search findings from such grants and contracts to clini21 cians, patients, and the general public, as appropriate: Pro22 vided further, That, to the extent feasible, the Secretary 

23 shall ensure that the recipients of the funds provided by this 

24 paragraph offer an opportunity for public comment on the 

25 research: Provided further, That the Secretary shall provide 
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1 the Committees on Appropriations of the House of Rep2 resentatives and the Senate, the Committee on Energy and 

3 Commerce and the Committee on Ways and Means of the 

4 House of Representatives, and the Committee on Health, 

5 Education, Labor, and Pensions and the Committee on Fi6 nance of the Senate with an annual report on the research 

7 conducted or supported through the funds provided under 

8 this heading. 

9 ADMINISTRATION FOR CHILDREN AND FAMILIES

10 PAYMENTS TO STATES FOR THE CHILD CARE AND

11 DEVELOPMENT BLOCK GRANT

12 For an additional amount for ‘‘Payments to States for 

13 the Child Care and Development Block Grant’’ for carrying 

14 out the Child Care and Development Block Grant Act of 

15 1990, $2,000,000,000, which shall remain available through 

16 September 30, 2010: Provided, That funds provided under 

17 this heading shall be used to supplement, not supplant State 

18 general revenue funds for child care assistance for low-in19 come families: Provided further, That, in addition to the 

20 amounts required to be reserved by the States under section 

21 658G of such Act, $255,186,000 shall be reserved by the 

22 States for activities authorized under section 658G, of which 

23 $93,587,000 shall be for activities that improve the quality 

24 of infant and toddler care. 
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1 SOCIAL SERVICES BLOCK GRANT

2 For an additional amount for ‘‘Social Services Block 

3 Grant,’’ $400,000,000: Provided, That notwithstanding sec4 tion 2003 of the Social Security Act, funds shall be allocated 

5 to States on the basis of unemployment: Provided further, 

6 That these funds shall be obligated to States within 60 cal7 endar days from the date they become available for obliga8 tion. 

9 CHILDREN AND FAMILIES SERVICES PROGRAMS

10 For an additional amount for ‘‘Children and Families 

11 Services Programs’’ for carrying out activities under the 

12 Head Start Act, $500,000,000, which shall remain available 

13 through September 30, 2010. In addition, $550,000,000, 

14 which shall remain available through September 30, 2010, 

15 is hereby appropriated for expansion of Early Head Start 

16 programs, as described in section 645A of such Act: Pro17 vided, That of the funds provided in this sentence, up to 

18 10 percent shall be available for the provision of training 

19 and technical assistance to such programs consistent with 

20 section 645A(g)(2) of such Act, and up to 3 percent shall 

21 be available for monitoring the operation of such programs 

22 consistent with section 641A of such Act. 

23 For an additional amount for ‘‘Children and Families 

24 Services Programs’’ for carrying out activities under sec25 tions 674 through 679 of the Community Services Block 
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1 Grant Act, $200,000,000, which shall remain available 

2 through September 30, 2010: Provided, That of the funds 

3 provided under this paragraph, no part shall be subject to 

4 paragraph (3) of section 674(b) of such Act: Provided fur5 ther, That not less than 5 percent of the funds allotted to 

6 a State from the appropriation under this paragraph shall 

7 be used under section 675C(b)(1) for benefits enrollment co8 ordination activities relating to the identification and en9 rollment of eligible individuals and families in Federal, 

10 State and local benefit programs. 

11 ADMINISTRATION ON AGING

12 AGING SERVICES PROGRAMS

13 For an additional amount for ‘‘Aging Services Pro14 grams,’’ $100,000,000, of which $67,000,000 shall be for 

15 Congregate Nutrition Services and $33,000,000 shall be for 

16 Home-Delivered Nutrition Services: Provided, That these 

17 funds shall remain available through September 30, 2010. 

18 OFFICE OF THE SECRETARY

19 OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH

20 INFORMATION TECHNOLOGY

21 (INCLUDING TRANSFER OF FUNDS)

22 For an additional amount for ‘‘Office of the National 

23 Coordinator for Health Information Technology’’, 

24 $3,000,000,000, to carry out title XIII of this Act which 

25 shall be available until expended: Provided, That of this 
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1 amount, the Secretary of Health and Human Services shall 

2 transfer $20,000,000 to the Director of the National Insti3 tute of Standards and Technology in the Department of 

4 Commerce for continued work on advancing health care in5 formation enterprise integration through activities such as 

6 technical standards analysis and establishment of conform7 ance testing infrastructure so long as such activities are co8 ordinated with the Office of the National Coordinator for 

9 Health Information Technology: Provided further, That 

10 funds available under this heading shall become available 

11 for obligation only upon submission of an annual operating 

12 plan by the Secretary to the Committees on Appropriations 

13 of the House of Representatives and the Senate: Provided 

14 further, That the Secretary shall provide to the Committees 

15 on Appropriations of the House of Representatives and the 

16 Senate a report on the actual obligations, expenditures, and 

17 unobligated balances for each major set of activities not 

18 later than November 1, 2009 and every 6 months thereafter 

19 as long as funding under this heading is available for obli20 gation or expenditure. 

21 OFFICE OF THE INSPECTOR GENERAL

22 For an additional amount for the Office of the Inspec23 tor General, $4,000,000 which shall remain available until 

24 September 30, 2012, and an additional $15,000,000 for 
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1 such purposes, to remain available until September 30, 

2 2012. 

3 DEPARTMENT OF EDUCATION 

4 EDUCATION FOR THE DISADVANTAGED

5 For an additional amount for carrying out title I of 

6 the Elementary and Secondary Education Act of 1965, 

7 $12,400,000,000, which shall be available through Sep8 tember 30, 2010: Provided, That $5,500,000,000 shall be for 

9 targeted grants under section 1125, $5,500,000,000 shall be 

10 for education finance incentive grants under section 1125A, 

11 and $1,400,000,000 shall be for school improvement grants 

12 under section 1003(g): Provided further, That each local 

13 educational agency receiving funds available under this 

14 paragraph for sections 1125 and 1125A shall use not less 

15 than 15 percent of such funds for activities serving children 

16 who are eligible pursuant to section 1115(b)(1)(A)(ii) and 

17 programs in section 1112(b)(1)(K): Provided further, That 

18 each local educational agency receiving funds available 

19 under this paragraph shall be required to file with the State 

20 educational agency, no later than December 1, 2009, a 

21 school-by-school listing of per-pupil educational expendi22 tures from State and local sources during the 2008–2009 

23 academic year. 
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1 SCHOOL IMPROVEMENT PROGRAMS

2 For an additional amount for ‘‘School Improvement 

3 Programs,’’ $1,070,000,000, which shall be available 

4 through September 30, 2010, for carrying out activities au5 thorized by part D of title II of the Elementary and Sec6 ondary Education Act of 1965, and subtitle B of title VII 

7 of the McKinney-Vento Homeless Assistance Act (‘‘McKin8 ney-Vento’’): Provided, That the Secretary shall allot 

9 $70,000,000 for grants under McKinney-Vento to each State 

10 in proportion to the number of homeless students identified 

11 by the State during the 2007–2008 school year relative to 

12 the number of such children identified nationally during 

13 that school year: Provided further, That State educational 

14 agencies shall subgrant the McKinney-Vento funds to local 

15 educational agencies on a competitive basis or according 

16 to a formula based on the number of homeless students iden17 tified by the local educational agencies in the State: Pro18 vided further, That the Secretary shall distribute the 

19 McKinney-Vento funds to the States not later than 60 days 

20 after the date of the enactment of this Act: Provided further, 

21 That each State shall subgrant the McKinney-Vento funds 

22 to local educational agencies not later than 120 days after 

23 receiving its grant from the Secretary. 
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1 SPECIAL EDUCATION

2 For an additional amount for ‘‘Special Education’’ for 

3 carrying out parts B and C of the Individuals with Disabil4 ities Education Act (‘‘IDEA’’), $13,500,000,000, which 

5 shall remain available through September 30, 2010: Pro6 vided, That if every State, as defined by section 602(31) 

7 of the IDEA, reaches its maximum allocation under section 

8 611(d)(3)(B)(iii) of the IDEA, and there are remaining 

9 funds, such funds shall be proportionally allocated to each 

10 State subject to the maximum amounts contained in section 

11 611(a)(2) of the IDEA: Provided further, That by July 1, 

12 2009, the Secretary of Education shall reserve the amount 

13 needed for grants under section 643(e) of the IDEA, with 

14 any remaining funds to be allocated in accordance with sec15 tion 643(c) of the IDEA: Provided further, That the amount 

16 for section 611(b)(2) of the IDEA shall be equal to the lesser 

17 of the amount available for that activity during fiscal year 

18 2008, increased by the amount of inflation as specified in 

19 section 619(d)(2)(B), or the percentage increase in the funds 

20 appropriated under section 611(i): Provided further, That 

21 each local educational agency receiving funds available 

22 under this paragraph for part B shall use not less than 

23 15 percent for special education and related services to chil24 dren described in section 619(a) of the IDEA. 
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1 REHABILITATION SERVICES AND DISABILITY RESEARCH

2 For an additional amount for ‘‘Rehabilitation Services 

3 and Disability Research’’ for providing grants to States to 

4 carry out the Vocational Rehabilitation Services program 

5 under part B of title I and parts B and C of chapter 1 

6 and chapter 2 of title VII of the Rehabilitation Act of 1973, 

7 $610,000,000, which shall remain available through Sep8 tember 30, 2010: Provided, That $500,000,000 shall be 

9 available for part B of title I of the Rehabilitation Act: Pro10 vided further, That funds provided herein shall not be con11 sidered in determining the amount required to be appro12 priated under section 100(b)(1) of the Rehabilitation Act 

13 of 1973 in any fiscal year: Provided further, That, notwith14 standing section 7(14)(A), the Federal share of the costs of 

15 vocational rehabilitation services provided with the funds 

16 provided herein shall be 100 percent. 

17 STUDENT FINANCIAL ASSISTANCE

18 For an additional amount for ‘‘Student Financial As19 sistance’’ to carry out subpart 1 of part A of title IV of 

20 the Higher Education Act of 1965, $13,869,000,000: Pro21 vided, That such funds shall be used to increase the max22 imum Pell Grant by $281 for award year 2009–2010, to 

23 increase the maximum Pell Grant by $400 for the award 

24 year 2010–2011, and to reduce or eliminate the Pell Grant 
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1 shortfall: Provided further, That these funds shall remain 

2 available through September 30, 2011. 

3 For an additional amount for ‘‘Student Financial As4 sistance’’ to carry out part E of title IV of the Higher Edu5 cation Act of 1965, $61,000,000: Provided, That these funds 

6 shall remain available through September 30, 2010. 

7 HIGHER EDUCATION

8 For an additional amount for ‘‘Higher Education’’ for 

9 carrying out activities under part A of title II of the Higher 

10 Education Act of 1965, $50,000,000: Provided, That these 

11 funds shall remain available through September 30, 2010. 

12 DEPARTMENTAL MANAGEMENT

13 OFFICE OF THE INSPECTOR GENERAL

14 For an additional amount for the ‘‘Office of the Inspec15 tor General’’, $4,000,000, which shall remain available 

16 through September 30, 2012, for salaries and expenses nec17 essary for oversight and audit of programs, grants, and 

18 projects funded in this Act and administered by the Depart19 ment of Education and an additional $10,000,000 for such 

20 purposes, to remain available until September 30, 2012. 
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1 RELATED AGENCIES 

2 CORPORATION FOR NATIONAL AND COMMUNITY 

3 SERVICE 

4 OPERATING EXPENSES

5 (INCLUDING TRANSFER OF FUNDS)

6 For an additional amount for ‘‘Operating Expenses’’ 

7 to carry out the Domestic Volunteer Service Act of 1973 

8 (‘‘1973 Act’’) and the National and Community Service Act 

9 of 1990 (‘‘1990 Act’’), $160,000,000, to remain available 

10 through September 30, 2010: Provided, That funds made 

11 available in this paragraph may be used to provide adjust12 ments to awards under subtitle C of title I of the 1990 Act 

13 made prior to September 30, 2010 for which the Chief Exec14 utive Officer of the Corporation for National and Commu15 nity Service (‘‘CEO’’) determines that a waiver of the Fed16 eral share limitation is warranted under section 2521.70 

17 of title 45 of the Code of Federal Regulations: Provided fur18 ther, That of the amount made available in this paragraph, 

19 not less than $6,000,000 shall be transferred to ‘‘Salaries 

20 and Expenses’’ for necessary expenses relating to informa21 tion technology upgrades: Provided further, That of the 

22 amount provided in this paragraph, $10,000,000 shall be 

23 available for additional members in the Civilian Commu24 nity Corps authorized under subtitle E of title I of the 1990 

25 Act: Provided further, That of the amount provided in this 
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1 paragraph, $1,000,000 shall be made available for a one2 time supplement grant to State commissions on national 

3 and community service under section 126(a) of the 1990 

4 Act without regard to the limitation on Federal share under 

5 section 126(a)(2) of the 1990 Act: Provided further, That 

6 of the amount made available in this paragraph, not less 

7 than $13,000,000 shall be for research activities authorized 

8 under subtitle H of title I of the 1990 Act: Provided further, 

9 That of the amount made available in this paragraph, not 

10 less than $65,000,000 shall be for programs under title I, 

11 part A of the 1973 Act: Provided further, That funds pro12 vided in the previous proviso shall not be made available 

13 in connection with cost-share agreements authorized under 

14 section 192A(g)(10) of the 1990 Act: Provided further, That 

15 of the funds available under this heading, up to 20 percent 

16 of funds allocated to grants authorized under section 124(b) 

17 of title I, subtitle C of the 1990 Act may be used to admin18 ister, reimburse, or support any national service program 

19 under section 129(d)(2) of the 1990 Act: Provided further, 

20 That, except as provided herein and in addition to require21 ments identified herein, funds provided in this paragraph 

22 shall be subject to the terms and conditions under which 

23 funds were appropriated in fiscal year 2008: Provided fur24 ther, That the CEO shall provide the Committees on Appro25 priations of the House of Representatives and the Senate 
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1 a fiscal year 2009 operating plan for the funds appro2 priated in this paragraph prior to making any Federal ob3 ligations of such funds in fiscal year 2009, but not later 

4 than 90 days after the date of enactment of this Act, and 

5 a fiscal year 2010 operating plan for such funds prior to 

6 making any Federal obligations of such funds in fiscal year 

7 2010, but not later than November 1, 2009, that detail the 

8 allocation of resources and the increased number of members 

9 supported by the AmeriCorps programs: Provided further, 

10 That the CEO shall provide to the Committees on Appro11 priations of the House of Representatives and the Senate 

12 a report on the actual obligations, expenditures, and unobli13 gated balances for each activity funded under this heading 

14 not later than November 1, 2009, and every 6 months there15 after as long as funding provided under this heading is 

16 available for obligation or expenditure. 

17 OFFICE OF THE INSPECTOR GENERAL

18 For an additional amount for the Office of the Inspec19 tor General, $1,000,000, which shall remain available until 

20 September 30, 2011. 

21 NATIONAL SERVICE TRUST

22 (INCLUDING TRANSFER OF FUNDS)

23 For an additional amount for ‘‘National Service 

24 Trust’’ established under subtitle D of title I of the National 

25 and Community Service Act of 1990 (‘‘1990 Act’’), 
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1 $40,000,000, which shall remain available until expended: 

2 Provided, That the Corporation for National and Commu3 nity Service may transfer additional funds from the 

4 amount provided within ‘‘Operating Expenses’’ for grants 

5 made under subtitle C of title I of the 1990 Act to this ap6 propriation upon determination that such transfer is nec7 essary to support the activities of national service partici8 pants and after notice is transmitted to the Committees on 

9 Appropriations of the House of Representatives and the 

10 Senate: Provided further, the amount appropriated for or 

11 transferred to the National Service Trust may be invested 

12 under section 145(b) of the 1990 Act without regard to the 

13 requirement to apportion funds under 31 U.S.C. 1513(b). 

14 SOCIAL SECURITY ADMINISTRATION 

15 LIMITATION ON ADMINISTRATIVE EXPENSES

16 (INCLUDING TRANSFER OF FUNDS)

17 For an additional amount for ‘‘Limitation on Admin18 istrative Expenses’’, $890,000,000 shall be available as fol19 lows: 

20 (1) $750,000,000 shall remain available until ex21 pended for necessary expenses of the replacement of 

22 the National Computer Center and the information 

23 technology costs associated with such Center: Pro24 vided, That the Commissioner of Social Security shall 

25 notify the Committees on Appropriations of the House 
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1 of Representatives and the Senate not later than 10 

2 days prior to each public notice soliciting bids related 

3 to site selection and construction: Provided further, 

4 That unobligated balances of funds not needed for this 

5 purpose may be used as described in subparagraph 

6 (2); and 

7 (2) $140,000,000 shall be available through Sep8 tember 30, 2010 for information technology acquisi9 tions and research, which may include research and 

10 activities to facilitate the adoption of electronic med11 ical records in disability claims and the transfer of 

12 funds to ‘‘Supplemental Security Income’’ to carry 

13 out activities under section 1110 of the Social Secu14 rity Act: Provided further, That not later than 10 

15 days prior to the obligation of such funds, the Com16 missioner shall provide to the Committees on Appro17 priations of the House of Representatives and the 

18 Senate an operating plan describing the planned uses 

19 of such funds. 

20 OFFICE OF INSPECTOR GENERAL

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

22 General’’, $3,000,000, which shall remain available through 

23 September 30, 2012, for salaries and expenses necessary for 

24 oversight and audit of programs, projects, and activities 
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1 funded in this Act and administered by the Social Security 

2 Administration. 

3 GENERAL PROVISIONS—THIS TITLE 

4 SEC. 801. REPORT ON THE IMPACT OF PAST AND FU5 TURE MINIMUM WAGE INCREASES. (a) IN GENERAL.—Sec6 tion 8104 of the U.S. Troop Readiness, Veterans’ Care, 

7 Katrina Recovery, and Iraq Accountability Appropriations 

8 Act, 2007 (Public Law 110–28; 121 Stat. 189) is amended 

9 to read as follows: 

10 ‘‘SEC. 8104. REPORT ON THE IMPACT OF PAST AND FUTURE 

11 MINIMUM WAGE INCREASES. 

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

13 after the date of enactment of this Act, and every year there14 after until the minimum wage in the respective territory 

15 is $7.25 per hour, the Government Accountability Office 

16 shall conduct a study to— 

17 ‘‘(1) assess the impact of the minimum wage in18 creases that occurred in American Samoa and the 

19 Commonwealth of the Northern Mariana Islands in 

20 2007 and 2008, as required under Public Law 110– 

21 28, on the rates of employment and the living stand22 ards of workers, with full consideration of the other 

23 factors that impact rates of employment and the liv24 ing standards of workers such as inflation in the cost 

25 of food, energy, and other commodities; and 
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1 ‘‘(2) estimate the impact of any further wage in2 creases on rates of employment and the living stand3 ards of workers in American Samoa and the Com4 monwealth of the Northern Mariana Islands, with full 

5 consideration of the other factors that may impact the 

6 rates of employment and the living standards of 

7 workers, including assessing how the profitability of 

8 major private sector firms may be impacted by wage 

9 increases in comparison to other factors such as en10 ergy costs and the value of tax benefits. 

11 ‘‘(b) REPORT.—No earlier than March 15, 2009, and 

12 not later than April 15, 2009, the Government Account13 ability Office shall transmit its first report to Congress con14 cerning the findings of the study required under subsection 

15 (a). The Government Accountability Office shall transmit 

16 any subsequent reports to Congress concerning the findings 

17 of a study required by subsection (a) between March 15 and 

18 April 15 of each year. 

19 ‘‘(c) ECONOMIC INFORMATION.—To provide sufficient 

20 economic data for the conduct of the study under subsection 

21 (a)— 

22 ‘‘(1) the Department of Labor shall include and 

23 separately report on American Samoa and the Com24 monwealth of the Northern Mariana Islands in its 

25 household surveys and establishment surveys; 
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1 ‘‘(2) the Bureau of Economic Analysis of the De2 partment of Commerce shall include and separately 

3 report on American Samoa and the Commonwealth of 

4 the Northern Mariana Islands in its gross domestic 

5 product data; and 

6 ‘‘(3) the Bureau of the Census of the Department 

7 of Commerce shall include and separately report on 

8 American Samoa and the Commonwealth of the 

9 Northern Mariana Islands in its population estimates 

10 and demographic profiles from the American Commu11 nity Survey, 

12 with the same regularity and to the same extent as the De13 partment or each Bureau collects and reports such data for 

14 the 50 States. In the event that the inclusion of American 

15 Samoa and the Commonwealth of the Northern Mariana 

16 Islands in such surveys and data compilations requires 

17 time to structure and implement, the Department of Labor, 

18 the Bureau of Economic Analysis, and the Bureau of the 

19 Census (as the case may be) shall in the interim annually 

20 report the best available data that can feasibly be secured 

21 with respect to such territories. Such interim reports shall 

22 describe the steps the Department or the respective Bureau 

23 will take to improve future data collection in the territories 

24 to achieve comparability with the data collected in the 

25 United States. The Department of Labor, the Bureau of 
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1 Economic Analysis, and the Bureau of the Census, together 

2 with the Department of the Interior, shall coordinate their 

3 efforts to achieve such improvements.’’. 

4 (b) EFFECTIVE DATE.—The amendment made by this 

5 section shall take effect on the date of enactment of this Act. 

6 SEC. 802. FEDERAL COORDINATING COUNCIL FOR

7 COMPARATIVE CLINICAL EFFECTIVENESS RESEARCH. (a) 

8 ESTABLISHMENT.—There is hereby established a Federal 

9 Coordinating Council for Comparative Clinical Effective10 ness Research (in this section referred to as the ‘‘Council’’). 

11 (b) PURPOSE; DUTIES.—The Council shall— 

12 (1) assist the offices and agencies of the Federal 

13 Government, including the Departments of Health 

14 and Human Services, Veterans Affairs, and Defense, 

15 and other Federal departments or agencies, to coordi16 nate the conduct or support of comparative clinical 

17 effectiveness and related health services research; and 

18 (2) advise the President and Congress on— 

19 (A) strategies with respect to the infrastruc20 ture needs of comparative clinical effectiveness 

21 research within the Federal Government; 

22 (B) appropriate organizational expendi23 tures for comparative clinical effectiveness re24 search by relevant Federal departments and 

25 agencies; and 
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1 (C) opportunities to assure optimum coordi2 nation of comparative clinical effectiveness and 

3 related health services research conducted or sup4 ported by relevant Federal departments and 

5 agencies, with the goal of reducing duplicative ef6 forts and encouraging coordinated and com7 plementary use of resources. 

8 (c) MEMBERSHIP.— 

9 (1) NUMBER AND APPOINTMENT.—The Council 

10 shall be composed of not more than 15 members, all 

11 of whom are senior Federal officers or employees with 

12 responsibility for health-related programs, appointed 

13 by the President, acting through the Secretary of 

14 Health and Human Services (in this section referred 

15 to as the ‘‘Secretary’’). Members shall first be ap16 pointed to the Council not later than 30 days after 

17 the date of the enactment of this Act. 

18 (2) MEMBERS.— 

19 (A) IN GENERAL.—The members of the 

20 Council shall include one senior officer or em21 ployee from each of the following agencies: 

22 (i) The Agency for Healthcare Research 

23 and Quality. 

24 (ii) The Centers for Medicare and Med25 icaid Services. 
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1 (iii) The National Institutes of Health. 

2 (iv) The Office of the National Coordi3 nator for Health Information Technology. 

4 (v) The Food and Drug Administra5 tion. 

6 (vi) The Veterans Health Administra7 tion within the Department of Veterans Af8 fairs. 

9 (vii) The office within the Department 

10 of Defense responsible for management of 

11 the Department of Defense Military Health 

12 Care System. 

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

14 members of the Council shall be physicians or 

15 other experts with clinical expertise. 

16 (3) CHAIRMAN; VICE CHAIRMAN.—The Secretary 

17 shall serve as Chairman of the Council and shall des18 ignate a member to serve as Vice Chairman. 

19 (d) REPORTS.— 

20 (1) INITIAL REPORT.—Not later than June 30, 

21 2009, the Council shall submit to the President and 

22 the Congress a report containing information describ23 ing Federal activities on comparative clinical effec24 tiveness research and recommendations for additional 

25 investments in such research conducted or supported 
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1 from funds made available for allotment by the Sec2 retary for comparative clinical effectiveness research 

3 in this Act. 

4 (2) ANNUAL REPORT.—The Council shall submit 

5 to the President and Congress an annual report re6 garding its activities and recommendations con7 cerning the infrastructure needs, appropriate organi8 zational expenditures and opportunities for better co9 ordination of comparative clinical effectiveness re10 search by relevant Federal departments and agencies. 

11 (e) STAFFING; SUPPORT.—From funds made available 

12 for allotment by the Secretary for comparative clinical effec13 tiveness research in this Act, the Secretary shall make avail14 able not more than 1 percent to the Council for staff and 

15 administrative support. 

16 (TRANSFER OF FUNDS)

17 SEC. 803. (a) Not more than 1 percent of the funds 

18 made available to the Department of Labor in this title may 

19 be transferred by the Secretary of Labor to ‘‘Employment 

20 and Training Administration—Program Administration’’, 

21 ‘‘Employment Standards Administration—Salaries and 

22 Expenses’’, ‘‘Occupational Safety and Health Administra23 tion—Salaries and Expenses’’ and ‘‘Departmental Manage24 ment—Salaries and Expenses’’ for expenses necessary to 

25 administer and coordinate funds made available to the De-
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1 partment of Labor in this title; oversee and evaluate the 

2 use of such funds; and enforce applicable laws and regula3 tions governing worker rights and protections associated 

4 with the funds made available in this Act. 

5 (b) Not later than 10 days prior to obligating any 

6 funds proposed to be transferred under subsection (a), the 

7 Secretary shall provide to the Committees on Appropria8 tions of the House of Representatives and the Senate an 

9 operating plan describing the planned uses of each amount 

10 proposed to be transferred. 

11 (c) Funds transferred under this section may be avail12 able for obligation through September 30, 2010. 

13 SEC. 804. ELIGIBLE EMPLOYEES IN THE REC14 REATIONAL MARINE INDUSTRY. Section 2(3)(F) of the 

15 Longshore and Harbor Workers’ Compensation Act (33 

16 U.S.C. 902(3)(F)) is amended— 

17 (1) by striking ‘‘, repair or dismantle’’; and 

18 (2) by striking the semicolon and inserting ‘‘, or 

19 individuals employed to repair any recreational ves20 sel, or to dismantle any part of a recreational vessel 

21 in connection with the repair of such vessel;’’. 
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1 TITLE IX—LEGISLATIVE BRANCH 

2 GOVERNMENT ACCOUNTABILITY OFFICE 

3 SALARIES AND EXPENSES

4 For an additional amount for ‘‘Salaries and Ex5 penses’’ of the Government Accountability Office, 

6 $20,000,000, to remain available until September 30, 2010. 

7 GENERAL PROVISIONS—THIS TITLE 

8 SEC. 901. GOVERNMENT ACCOUNTABILITY OFFICE RE9 VIEWS AND REPORTS. (a) REVIEWS AND REPORTS.— 

10 (1) IN GENERAL.—The Comptroller General 

11 shall conduct bimonthly reviews and prepare reports 

12 on such reviews on the use by selected State and local13 ities of funds made available in this Act. Such re14 ports, along with any audits conducted by the Comp15 troller General of such funds, shall be posted on the 

16 Internet and linked to the website established under 

17 this Act by the Recovery Accountability and Trans18 parency Board. 

19 (2) REDACTIONS.—Any portion of a report or 

20 audit under this subsection may be redacted when 

21 made publicly available, if that portion would dis22 close information that is not subject to disclosure 

23 under section 552 of title 5, United States Code (com24 monly known as the Freedom of Information Act). 
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1 (b) EXAMINATION OF RECORDS.—The Comptroller 

2 General may examine any records related to obligations of 

3 funds made available in this Act. 

4 SEC. 902. ACCESS OF GOVERNMENT ACCOUNTABILITY

5 OFFICE. Each contract awarded using funds made available 

6 in this Act shall provide that the Comptroller General and 

7 his representatives are authorized— 

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

9 any of its subcontractors, or any State or local agency 

10 administering such contract, that directly pertain to, 

11 and involve transactions relating to, the contract or 

12 subcontract; and 

13 (2) to interview any current employee regarding 

14 such transactions. 

15 TITLE X—MILITARY CONSTRUCTION AND 

16 VETERANS AFFAIRS, AND RELATED AGENCIES 

17 DEPARTMENT OF DEFENSE 

18 MILITARY CONSTRUCTION, ARMY

19 For an additional amount for ‘‘Military Construction, 

20 Army’’, $637,875,000, to remain available until September 

21 30, 2013, of which $84,100,000 shall be for child develop22 ment centers; $481,000,000 shall be for warrior transition 

23 complexes; and $42,400,000 shall be for health and dental 

24 clinics (including acquisition, construction, installation, 

25 and equipment): Provided, That notwithstanding any other 
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1 provision of law, such funds may be obligated and expended 

2 to carry out planning and design and military construction 

3 projects in the United States not otherwise authorized by 

4 law: Provided further, That of the funds provided under this 

5 heading, not to exceed $30,375,000 shall be available for 

6 study, planning, design, and architect and engineer serv7 ices: Provided further, That within 30 days of enactment 

8 of this Act the Secretary of the Army shall submit to the 

9 Committees on Appropriations of both Houses of Congress 

10 an expenditure plan for funds provided under this heading 

11 prior to obligation. 

12 MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

13 For an additional amount for ‘‘Military Construction, 

14 Navy and Marine Corps’’, $990,092,000, to remain avail15 able until September 30, 2013, of which $172,820,000 shall 

16 be for child development centers; $174,304,000 shall be for 

17 barracks; $125,000,000 shall be for health clinic replace18 ment, and $494,362,000 shall be for energy conservation 

19 and alternative energy projects (including acquisition, con20 struction, installation, and equipment): Provided, That not21 withstanding any other provision of law, such funds may 

22 be obligated and expended to carry out planning and design 

23 and military construction projects in the United States not 

24 otherwise authorized by law: Provided further, That of the 

25 funds provided under this heading, not to exceed 
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1 $23,606,000 shall be available for study, planning, design, 

2 and architect and engineer services: Provided further, That 

3 within 30 days of enactment of this Act the Secretary of 

4 the Navy shall submit to the Committees on Appropriations 

5 of both Houses of Congress an expenditure plan for funds 

6 provided under this heading prior to obligation. 

7 MILITARY CONSTRUCTION, AIR FORCE

8 For an additional amount for ‘‘Military Construction, 

9 Air Force’’, $871,332,000, to remain available until Sep10 tember 30, 2013, of which $80,100,000 shall be for child 

11 development centers; $612,246,000 shall be for dormitories; 

12 and $138,100,000 shall be for health clinics (including ac13 quisition, construction, installation, and equipment): Pro14 vided, That notwithstanding any other provision of law, 

15 such funds may be obligated and expended to carry out 

16 planning and design and military construction projects in 

17 the United States not otherwise authorized by law: Provided 

18 further, That of the funds provided under this heading, not 

19 to exceed $40,886,000 shall be available for study, planning, 

20 design, and architect and engineer services: Provided fur21 ther, That within 30 days of enactment of this Act the Sec22 retary of the Air Force shall submit to the Committees on 

23 Appropriations of both Houses of Congress an expenditure 

24 plan for funds provided under this heading prior to obliga25 tion. 
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1 MILITARY CONSTRUCTION, DEFENSE-WIDE

2 For an additional amount for ‘‘Military Construction, 

3 Defense-Wide’’, $118,560,000 for the Energy Conservation 

4 Investment Program, to remain available until September 

5 30, 2010: Provided, That notwithstanding any other provi6 sion of law, such funds may be obligated and expended to 

7 carry out planning and design and military construction 

8 projects in the United States not otherwise authorized by 

9 law: Provided further, That within 30 days of enactment 

10 of this Act the Secretary of Defense shall submit to the Com11 mittees on Appropriations of both Houses of Congress an 

12 expenditure plan for funds provided under this heading 

13 prior to obligation. 

14 MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

15 For an additional amount for ‘‘Military Construction, 

16 Army National Guard’’, $150,000,000 for readiness centers 

17 (including construction, acquisition, expansion, rehabilita18 tion, and conversion), to remain available until September 

19 30, 2013: Provided, That notwithstanding any other provi20 sion of law, such funds may be obligated and expended to 

21 carry out planning and design and military construction 

22 projects in the United States not otherwise authorized by 

23 law: Provided further, That within 30 days of enactment 

24 of this Act the Director of the Army National Guard shall 

25 submit to the Committees on Appropriations of both Houses 
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1 of Congress an expenditure plan for funds provided under 

2 this heading prior to obligation. 

3 MILITARY CONSTRUCTION, AIR NATIONAL GUARD

4 For an additional amount for ‘‘Military Construction, 

5 Air National Guard’’, $110,000,000, to remain available 

6 until September 30, 2013: Provided, That notwithstanding 

7 any other provision of law, such funds may be obligated 

8 and expended to carry out planning and design and mili9 tary construction projects in the United States not other10 wise authorized by law: Provided further, That within 30 

11 days of enactment of this Act the Director of the Air Na12 tional Guard shall submit to the Committees on Appropria13 tions of both Houses of Congress an expenditure plan for 

14 funds provided under this heading prior to obligation. 

15 FAMILY HOUSING CONSTRUCTION, ARMY

16 For an additional amount for ‘‘Family Housing Con17 struction, Army’’, $34,570,000, to remain available until 

18 September 30, 2013: Provided, That notwithstanding any 

19 other provision of law, such funds may be obligated and 

20 expended to carry out planning and design and military 

21 construction projects in the United States not otherwise au22 thorized by law: Provided further, That within 30 days of 

23 enactment of this Act the Secretary of the Army shall sub24 mit to the Committees on Appropriations of both Houses 
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1 of Congress an expenditure plan for funds provided under 

2 this heading prior to obligation. 

3 FAMILY HOUSING OPERATION AND MAINTENANCE, ARMY

4 For an additional amount for ‘‘Family Housing Oper5 ation and Maintenance, Army’’, $3,932,000: Provided, That 

6 notwithstanding any other provision of law, such funds 

7 may be obligated and expended for operation and mainte8 nance and minor construction projects in the United States 

9 not otherwise authorized by law. 

10 FAMILY HOUSING CONSTRUCTION, AIR FORCE

11 For an additional amount for ‘‘Family Housing Con12 struction, Air Force’’, $80,100,000, to remain available 

13 until September 30, 2013: Provided, That notwithstanding 

14 any other provision of law, such funds may be obligated 

15 and expended to carry out planning and design and mili16 tary construction projects in the United States not other17 wise authorized by law: Provided further, That within 30 

18 days of enactment of this Act the Secretary of the Air Force 

19 shall submit to the Committees on Appropriations of both 

20 Houses of Congress an expenditure plan for funds provided 

21 under this heading prior to obligation. 

22 FAMILY HOUSING OPERATION AND MAINTENANCE, AIR

23 FORCE

24 For an additional amount for ‘‘Family Housing Oper25 ation and Maintenance, Air Force’’, $16,461,000: Provided, 
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1 That notwithstanding any other provision of law, such 

2 funds may be obligated and expended for operation and 

3 maintenance and minor construction projects in the United 

4 States not otherwise authorized by law. 

5 HOMEOWNERS ASSISTANCE FUND

6 For an additional amount for ‘‘Homeowners Assist7 ance Fund’’, established by section 1013 of the Demonstra8 tion Cities and Metropolitan Development Act of 1966, as 

9 amended (42 U.S.C. 3374), $410,973,000, to remain avail10 able until expended. 

11 ADMINISTRATIVE PROVISION

12 SEC. 1001. (a) TEMPORARY EXPANSION OF HOME13 OWNERS ASSISTANCE PLAN TO RESPOND TO MORTGAGE

14 FORECLOSURE AND CREDIT CRISIS. Section 1013 of the 

15 Demonstration Cities and Metropolitan Development Act of 

16 1966 (42 U.S.C. 3374) is amended— 

17 (1) in subsection (a)— 

18 (A) by redesignating paragraphs (1), (2), 

19 and (3) as clauses (i), (ii), and (iii), respec20 tively, and indenting such subparagraphs, as so 

21 redesignated, 6 ems from the left margin; 

22 (B) by striking ‘‘Notwithstanding any other 

23 provision of law’’ and inserting the following: 

24 ‘‘(1) ACQUISITION OF PROPERTY AT OR NEAR

25 MILITARY INSTALLATIONS THAT HAVE BEEN ORDERED
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1 TO BE CLOSED.—Notwithstanding any other provi2 sion of law’’; 

3 (C) by striking ‘‘if he determines’’ and in4 serting ‘‘if— 

5 ‘‘(A) the Secretary determines—’’; 

6 (D) in clause (iii), as redesignated by sub7 paragraph (A), by striking the period at the end 

8 and inserting ‘‘; or’’; and 

9 (E) by adding at the end the following: 

10 ‘‘(B) the Secretary determines— 

11 ‘‘(i) that the conditions in clauses (i) 

12 and (ii) of subparagraph (A) have been met; 

13 ‘‘(ii) that the closing or realignment of 

14 the base or installation resulted from a re15 alignment or closure carried out under the 

16 2005 round of defense base closure and re17 alignment under the Defense Base Closure 

18 and Realignment Act of 1990 (part XXIX 

19 of Public Law 101–510; 10 U.S.C. 2687 

20 note); 

21 ‘‘(iii) that the property was purchased 

22 by the owner before July 1, 2006; 

23 ‘‘(iv) that the property was sold by the 

24 owner between July 1, 2006, and September 
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1 30, 2012, or an earlier end date designated 

2 by the Secretary; 

3 ‘‘(v) that the property is the primary 

4 residence of the owner; and 

5 ‘‘(vi) that the owner has not previously 

6 received benefit payments authorized under 

7 this subsection. 

8 ‘‘(2) HOMEOWNER ASSISTANCE FOR WOUNDED

9 MEMBERS OF THE ARMED FORCES, DEPARTMENT OF

10 DEFENSE AND UNITED STATES COAST GUARD CIVILIAN

11 EMPLOYEES, AND THEIR SPOUSES.—Notwithstanding 

12 any other provision of law, the Secretary of Defense 

13 is authorized to acquire title to, hold, manage, and 

14 dispose of, or, in lieu thereof, to reimburse for certain 

15 losses upon private sale of, or foreclosure against, any 

16 property improved with a one- or two-family dwelling 

17 which was at the time of the relevant wound, injury, 

18 or illness, the primary residence of— 

19 ‘‘(A) any member of the Armed Forces in 

20 medical transition who— 

21 ‘‘(i) incurred a wound, injury, or ill22 ness in the line of duty during a deploy23 ment in support of the Armed Forces; 

24 ‘‘(ii) is disabled to a degree of 30 per25 cent or more as a result of such wound, in-
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1 jury, or illness, as determined by the Sec2 retary of Defense or the Secretary of Vet3 erans Affairs; and 

4 ‘‘(iii) is reassigned in furtherance of 

5 medical treatment or rehabilitation, or due 

6 to medical retirement in connection with 

7 such disability; 

8 ‘‘(B) any civilian employee of the Depart9 ment of Defense or the United States Coast 

10 Guard who— 

11 ‘‘(i) was wounded, injured, or became 

12 ill in the line of duty during a forward de13 ployment in support of the Armed Forces; 

14 and 

15 ‘‘(ii) is reassigned in furtherance of 

16 medical treatment, rehabilitation, or due to 

17 medical retirement resulting from the sus18 tained disability; or 

19 ‘‘(C) the spouse of a member of the Armed 

20 Forces or a civilian employee of the Department 

21 of Defense or the United States Coast Guard if— 

22 ‘‘(i) the member or employee was killed 

23 in the line of duty during a deployment in 

24 support of the Armed Forces or died from a 
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1 wound, injury, or illness incurred in the 

2 line of duty during such a deployment; and 

3 ‘‘(ii) the spouse relocates from such res4 idence within 2 years after the death of such 

5 member or employee. 

6 ‘‘(3) TEMPORARY HOMEOWNER ASSISTANCE FOR

7 MEMBERS OF THE ARMED FORCES PERMANENTLY RE8 ASSIGNED DURING SPECIFIED MORTGAGE CRISIS.— 

9 Notwithstanding any other provision of law, the Sec10 retary of Defense is authorized to acquire title to, 

11 hold, manage, and dispose of, or, in lieu thereof, to 

12 reimburse for certain losses upon private sale of, or 

13 foreclosure against, any property improved with a 

14 one- or two-family dwelling situated at or near a 

15 military base or installation, if the Secretary deter16 mines— 

17 ‘‘(A) that the owner is a member of the 

18 Armed Forces serving on permanent assignment; 

19 ‘‘(B) that the owner is permanently reas20 signed by order of the United States Government 

21 to a duty station or home port outside a 50-mile 

22 radius of the base or installation; 

23 ‘‘(C) that the reassignment was ordered be24 tween February 1, 2006, and September 30, 
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1 2012, or an earlier end date designated by the 

2 Secretary; 

3 ‘‘(D) that the property was purchased by 

4 the owner before July 1, 2006; 

5 ‘‘(E) that the property was sold by the 

6 owner between July 1, 2006, and September 30, 

7 2012, or an earlier end date designated by the 

8 Secretary; 

9 ‘‘(F) that the property is the primary resi10 dence of the owner; and 

11 ‘‘(G) that the owner has not previously re12 ceived benefit payments authorized under this 

13 subsection.’’; 

14 (2) in subsection (b), by striking ‘‘this section’’ 

15 each place it appears and inserting ‘‘subsection 

16 (a)(1)’’; 

17 (3) in subsection (c)— 

18 (A) by striking ‘‘Such persons’’ and insert19 ing the following: 

20 ‘‘(1) HOMEOWNER ASSISTANCE RELATED TO

21 CLOSED MILITARY INSTALLATIONS.— 

22 ‘‘(A) IN GENERAL.—Such persons’’; 

23 (B) by striking ‘‘set forth above shall elect 

24 either (1) to receive’’ and inserting the following: 

25 ‘‘set forth in subsection (a)(1) shall elect either— 
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1 ‘‘(i) to receive’’; 

2 (C) by striking ‘‘difference between (A) 95 

3 per centum’’ and all that follows through ‘‘(B) 

4 the fair market value’’ and inserting the fol5 lowing: ‘‘difference between— 

6 ‘‘(I) 95 per centum of the fair 

7 market value of their property (as such 

8 value is determined by the Secretary of 

9 Defense) prior to public announcement 

10 of intention to close all or part of the 

11 military base or installation; and 

12 ‘‘(II) the fair market value’’; 

13 (D) by striking ‘‘time of the sale, or (2) to 

14 receive’’ and inserting the following: ‘‘time of the 

15 sale; or 

16 ‘‘(ii) to receive’’; 

17 (E) by striking ‘‘outstanding mortgages. 

18 The Secretary may also pay a person who elects 

19 to receive a cash payment under clause (1) of the 

20 preceding sentence an amount’’ and inserting 

21 ‘‘outstanding mortgages. 

22 ‘‘(B) REIMBURSEMENT OF EXPENSES.—The 

23 Secretary may also pay a person who elects to 

24 receive a cash payment under subparagraph (A) 

25 an amount’’; and 
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1 (F) by striking ‘‘best interest of the Federal 

2 Government. Cash payment’’ and inserting the 

3 following: ‘‘best interest of the United States. 

4 ‘‘(2) HOMEOWNER ASSISTANCE FOR WOUNDED

5 INDIVIDUALS AND THEIR SPOUSES.— 

6 ‘‘(A) IN GENERAL.—Persons eligible under 

7 the criteria set forth in subsection (a)(2) may 

8 elect either— 

9 ‘‘(i) to receive a cash payment as com10 pensation for losses which may be or have 

11 been sustained in a private sale, in an 

12 amount not to exceed the difference be13 tween— 

14 ‘‘(I) 95 per centum of prior fair 

15 market value of their property (as such 

16 value is determined by the Secretary of 

17 Defense); and 

18 ‘‘(II) the fair market value of such 

19 property (as such value is so deter20 mined) at the time of the wound, in21 jury, or illness qualifying the indi22 vidual for benefits under subsection 

23 (a)(2); or 

24 ‘‘(ii) to receive, as purchase price for 

25 their property an amount not to exceed 90 
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1 per centum of prior fair market value as 

2 such value is determined by the Secretary of 

3 Defense, or the amount of the outstanding 

4 mortgages. 

5 ‘‘(B) DETERMINATION OF BENEFITS.—The 

6 Secretary may also pay a person who elects to 

7 receive a cash payment under subparagraph (A) 

8 an amount that the Secretary determines appro9 priate to reimburse the person for the costs in10 curred by the person in the sale of the property 

11 if the Secretary determines that such payment 

12 will benefit the person and is in the best interest 

13 of the United States. 

14 ‘‘(3) HOMEOWNER ASSISTANCE FOR PERMA15 NENTLY REASSIGNED INDIVIDUALS.— 

16 ‘‘(A) IN GENERAL.—Persons eligible under 

17 the criteria set forth in subsection (a)(3) may 

18 elect either— 

19 ‘‘(i) to receive a cash payment as com20 pensation for losses which may be or have 

21 been sustained in a private sale, in an 

22 amount not to exceed the difference be23 tween— 

24 ‘‘(I) 95 per centum of prior fair 

25 market value of their property (as such 
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1 value is determined by the Secretary of 

2 Defense); and 

3 ‘‘(II) the fair market value of such 

4 property (as such value is so deter5 mined) at the time the person received 

6 change of permanent station orders; or 

7 ‘‘(ii) to receive, as purchase price for 

8 their property an amount not to exceed 90 

9 per centum of prior fair market value as 

10 such value is determined by the Secretary of 

11 Defense, or the amount of the outstanding 

12 mortgages. 

13 ‘‘(B) DETERMINATION OF BENEFITS.—The 

14 Secretary may also pay a person who elects to 

15 receive a cash payment under subparagraph (A) 

16 an amount that the Secretary determines appro17 priate to reimburse the person for the costs in18 curred by the person in the sale of the property 

19 if the Secretary determines that such payment 

20 will benefit the person and is in the best interest 

21 of the United States. 

22 ‘‘(4) COMPENSATION AND LIMITATIONS RELATED

23 TO FORECLOSURES AND ENCUMBRANCES.—Cash pay24 ment’’; 

25 (4) by striking subsection (g); 
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1 (5) in subsection (l), by striking ‘‘(a)(2)’’ and in2 serting ‘‘(a)(1)(A)(ii)’’; 

3 (6) in subsection (m), by striking ‘‘this section’’ 

4 and inserting ‘‘subsection (a)(1)’’; 

5 (7) in subsection (n)— 

6 (A) in paragraph (1), by striking ‘‘this sec7 tion’’ and inserting ‘‘subsection (a)(1)’’; and 

8 (B) in paragraph (2), by striking ‘‘this sec9 tion’’ and inserting ‘‘subsection (a)(1)’’; 

10 (8) in subsection (o)— 

11 (A) in paragraph (1), by striking ‘‘this sec12 tion’’ and inserting ‘‘subsection (a)(1)’’; 

13 (B) in paragraph (2), by striking ‘‘this sec14 tion’’ and inserting ‘‘subsection (a)(1)’’; and 

15 (C) by striking paragraph (4); and 

16 (9) by adding at the end the following new sub17 section: 

18 ‘‘(p) DEFINITIONS.—In this section: 

19 ‘‘(1) the term ‘Armed Forces’ has the meaning 

20 given the term ‘armed forces’ in section 101(a) of title 

21 10, United States Code; 

22 ‘‘(2) the term ‘civilian employee’ has the mean23 ing given the term ‘employee’ in section 2105(a) of 

24 title 5, United States Code; 
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1 ‘‘(3) the term ‘medical transition’, in the case of 

2 a member of the Armed Forces, means a member 

3 who— 

4 ‘‘(A) is in Medical Holdover status; 

5 ‘‘(B) is in Active Duty Medical Extension 

6 status; 

7 ‘‘(C) is in Medical Hold status; 

8 ‘‘(D) is in a status pending an evaluation 

9 by a medical evaluation board; 

10 ‘‘(E) has a complex medical need requiring 

11 six or more months of medical treatment; or 

12 ‘‘(F) is assigned or attached to an Army 

13 Warrior Transition Unit, an Air Force Patient 

14 Squadron, a Navy Patient Multidisciplinary 

15 Care Team, or a Marine Patient Affairs Team/ 

16 Wounded Warrior Regiment; and 

17 ‘‘(4) the term ‘nonappropriated fund instrumen18 tality employee’ means a civilian employee who— 

19 ‘‘(A) is a citizen of the United States; and 

20 ‘‘(B) is paid from nonappropriated funds of 

21 Army and Air Force Exchange Service, Navy 

22 Resale and Services Support Office, Marine 

23 Corps exchanges, or any other instrumentality of 

24 the United States under the jurisdiction of the 

25 Armed Forces which is conducted for the comfort, 
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1 pleasure, contentment, or physical or mental im2 provement of members of the Armed Forces.’’. 

3 (b) CLERICAL AMENDMENT.—Such section is further 

4 amended in the section heading by inserting ‘‘and certain 

5 property owned by members of the armed forces, department 

6 of defense and united states coast guard civilian employees, 

7 and surviving spouses’’ after ‘‘ordered to be closed’’. 

8 (c) AUTHORITY TO USE APPROPRIATED FUNDS.—Not9 withstanding subsection (i) of such section, amounts appro10 priated or otherwise made available by this title under the 

11 heading ‘‘Homeowners Assistance Fund’’ may be used for 

12 the Homeowners Assistance Fund established under such 

13 section. 

14 DEPARTMENT OF VETERANS AFFAIRS 

15 VETERANS HEALTH ADMINISTRATION

16 MEDICAL SUPPORT AND COMPLIANCE

17 For an additional amount for ‘‘Medical Support and 

18 Compliance’’, $5,000,000, to remain available until Sep19 tember 30, 2010, to support contract administration and 

20 energy initiative execution at the Veterans Health Adminis21 tration. 

22 MEDICAL FACILITIES

23 For an additional amount for ‘‘Medical Facilities’’, 

24 $1,370,459,000, to remain available until September 30, 

25 2010, of which $1,047,313,000 shall be for facility condition 
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1 assessment deficiencies and non-recurring maintenance at 

2 existing medical facilities; and $323,146,000 shall be for en3 ergy efficiency initiatives. 

4 NATIONAL CEMETERY ADMINISTRATION

5 For an additional amount for ‘‘National Cemetery Ad6 ministration’’, $64,961,000, to remain available until Sep7 tember 30, 2010, of which $59,476,000 shall be for capital 

8 infrastructure and memorial and monument repairs; and 

9 $5,485,000 shall be for energy efficiency initiatives. 

10 DEPARTMENTAL ADMINISTRATION

11 GENERAL OPERATING EXPENSES

12 For an additional amount for ‘‘General Operating Ex13 penses’’, $1,125,000, to remain available until September 

14 30, 2010, for additional Full Time Equivalent salary and 

15 expenses for major construction project administration and 

16 execution and energy initiative execution. 

17 INFORMATION TECHNOLOGY SYSTEMS

18 For an additional amount for ‘‘Information Tech19 nology Systems’’, $195,000,000, to remain available until 

20 September 30, 2010, of which $145,000,000 shall be for the 

21 Veterans Benefits Administration’s development of 

22 paperless claims processing; and $50,000,000 shall be for 

23 the development of systems required to implement chapter 

24 33 of title 38, United States Code. 
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1 OFFICE OF INSPECTOR GENERAL

2 For an additional amount for ‘‘Office of Inspector 

3 General’’, $4,400,000, to remain available until September 

4 30, 2011, for oversight and audit of programs, grants and 

5 projects funded under this title. 

6 CONSTRUCTION, MAJOR PROJECTS

7 For an additional amount for ‘‘Construction, Major 

8 Projects’’, $1,105,333,000, to remain available until Sep9 tember 30, 2013, which shall be for acceleration and con10 struction of ongoing and planned construction, including 

11 physical security construction, of major medical facilities 

12 and National Cemeteries consistent with the Department of 

13 Veterans Affairs’ Five Year Capital Plan: Provided, That 

14 notwithstanding any other provision of law, such funds 

15 may be obligated and expended to carry out planning and 

16 design and major medical facility construction not other17 wise authorized by law: Provided further, That within 30 

18 days of enactment of this Act the Secretary of Veterans Af19 fairs shall submit to the Committees on Appropriations of 

20 both Houses of Congress an expenditure plan for funds pro21 vided under this heading prior to obligation. 

22 CONSTRUCTION, MINOR PROJECTS

23 For an additional amount for ‘‘Construction, Minor 

24 Projects’’, $939,836,000, to remain available until Sep25 tember 30, 2010, of which $860,742,000 shall be for Vet-
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1 erans Health Administration minor construction; 

2 $20,300,000 shall be for Veterans Benefits Administration 

3 minor construction, including $300,000 for energy effi4 ciency initiatives; and $29,012,000 shall be for National 

5 Cemetery Administration minor construction. 

6 GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE

7 FACILITIES

8 For an additional amount for ‘‘Grants for Construc9 tion of State Extended Care Facilities’’, $257,986,000, to 

10 remain available until September 30, 2010, for grants to 

11 assist States to acquire or construct State nursing home and 

12 domiciliary facilities and to remodel, modify, or alter exist13 ing hospital, nursing home, and domiciliary facilities in 

14 State homes, for furnishing care to veterans as authorized 

15 by sections 8131 through 8137 of title 38, United States 

16 Code. 

17 ADMINISTRATIVE PROVISION

18 SEC. 1002. PAYMENTS TO ELIGIBLE PERSONS WHO

19 SERVED IN THE UNITED STATES ARMED FORCES IN THE

20 FAR EAST DURING WORLD WAR II. (a) FINDINGS.—Con21 gress makes the following findings: 

22 (1) The Philippine islands became a United 

23 States possession in 1898 when they were ceded from 

24 Spain following the Spanish-American War. 
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1 (2) During World War II, Filipinos served in a 

2 variety of units, some of which came under the direct 

3 control of the United States Armed Forces. 

4 (3) The regular Philippine Scouts, the new Phil5 ippine Scouts, the Guerrilla Services, and more than 

6 100,000 members of the Philippine Commonwealth 

7 Army were called into the service of the United States 

8 Armed Forces of the Far East on July 26, 1941, by 

9 an executive order of President Franklin D. Roosevelt. 

10 (4) Even after hostilities had ceased, wartime 

11 service of the new Philippine Scouts continued as a 

12 matter of law until the end of 1946, and the force 

13 gradually disbanded and was disestablished in 1950. 

14 (5) Filipino veterans who were granted benefits 

15 prior to the enactment of the so-called Rescissions 

16 Acts of 1946 (Public Laws 79–301 and 79–391) cur17 rently receive full benefits under laws administered by 

18 the Secretary of Veterans Affairs, but under section 

19 107 of title 38, United States Code, the service of cer20 tain other Filipino veterans is deemed not to be active 

21 service for purposes of such laws. 

22 (6) These other Filipino veterans only receive 

23 certain benefits under title 38, United States Code, 

24 and, depending on where they legally reside, are paid 

25 such benefit amounts at reduced rates. 
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1 (7) The benefits such veterans receive include 

2 service-connected compensation benefits paid under 

3 chapter 11 of title 38, United States Code, dependency 

4 indemnity compensation survivor benefits paid under 

5 chapter 13 of title 38, United States Code, and burial 

6 benefits under chapters 23 and 24 of title 38, United 

7 States Code, and such benefits are paid to bene8 ficiaries at the rate of $0.50 per dollar authorized, 

9 unless they lawfully reside in the United States. 

10 (8) Dependents’ educational assistance under 

11 chapter 35 of title 38, United States Code, is also 

12 payable for the dependents of such veterans at the rate 

13 of $0.50 per dollar authorized, regardless of the vet14 erans’ residency. 

15 (b) COMPENSATION FUND.— 

16 (1) IN GENERAL.—There is in the general fund 

17 of the Treasury a fund to be known as the ‘‘Filipino 

18 Veterans Equity Compensation Fund’’ (in this section 

19 referred to as the ‘‘compensation fund’’). 

20 (2) AVAILABILITY OF FUNDS.—Subject to the 

21 availability of appropriations for such purpose, 

22 amounts in the fund shall be available to the Sec23 retary of Veterans Affairs without fiscal year limita24 tion to make payments to eligible persons in accord25 ance with this section. 
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1 (c) PAYMENTS.— 

2 (1) IN GENERAL.—The Secretary may make a 

3 payment from the compensation fund to an eligible 

4 person who, during the one-year period beginning on 

5 the date of the enactment of this Act, submits to the 

6 Secretary a claim for benefits under this section. The 

7 application for the claim shall contain such informa8 tion and evidence as the Secretary may require. 

9 (2) PAYMENT TO SURVIVING SPOUSE.—If an eli10 gible person who has filed a claim for benefits under 

11 this section dies before payment is made under this 

12 section, the payment under this section shall be made 

13 instead to the surviving spouse, if any, of the eligible 

14 person. 

15 (d) ELIGIBLE PERSONS.—An eligible person is any 

16 person who— 

17 (1) served— 

18 (A) before July 1, 1946, in the organized 

19 military forces of the Government of the Com20 monwealth of the Philippines, while such forces 

21 were in the service of the Armed Forces of the 

22 United States pursuant to the military order of 

23 the President dated July 26, 1941, including 

24 among such military forces organized guerrilla 

25 forces under commanders appointed, designated, 
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1 or subsequently recognized by the Commander in 

2 Chief, Southwest Pacific Area, or other com3 petent authority in the Army of the United 

4 States; or 

5 (B) in the Philippine Scouts under section 

6 14 of the Armed Forces Voluntary Recruitment 

7 Act of 1945 (59 Stat. 538); and 

8 (2) was discharged or released from service de9 scribed in paragraph (1) under conditions other than 

10 dishonorable. 

11 (e) PAYMENT AMOUNTS.—Each payment under this 

12 section shall be— 

13 (1) in the case of an eligible person who is not 

14 a citizen of the United States, in the amount of 

15 $9,000; and 

16 (2) in the case of an eligible person who is a cit17 izen of the United States, in the amount of $15,000. 

18 (f) LIMITATION.—The Secretary may not make more 

19 than one payment under this section for each eligible person 

20 described in subsection (d). 

21 (g) CLARIFICATION OF TREATMENT OF PAYMENTS

22 UNDER CERTAIN LAWS.—Amounts paid to a person under 

23 this section— 
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1 (1) shall be treated for purposes of the internal 

2 revenue laws of the United States as damages for 

3 human suffering; and 

4 (2) shall not be included in income or resources 

5 for purposes of determining— 

6 (A) eligibility of an individual to receive 

7 benefits described in section 3803(c)(2)(C) of title 

8 31, United States Code, or the amount of such 

9 benefits; 

10 (B) eligibility of an individual to receive 

11 benefits under title VIII of the Social Security 

12 Act, or the amount of such benefits; or 

13 (C) eligibility of an individual for, or the 

14 amount of benefits under, any other Federal or 

15 federally assisted program. 

16 (h) RELEASE.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), the acceptance by an eligible person or sur19 viving spouse, as applicable, of a payment under this 

20 section shall be final, and shall constitute a complete 

21 release of any claim against the United States by rea22 son of any service described in subsection (d). 

23 (2) PAYMENT OF PRIOR ELIGIBILITY STATUS.— 

24 Nothing in this section shall prohibit a person from 

25 receiving any benefit (including health care, survivor, 
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1 or burial benefits) which the person would have been 

2 eligible to receive based on laws in effect as of the day 

3 before the date of the enactment of this Act. 

4 (i) RECOGNITION OF SERVICE.—The service of a per5 son as described in subsection (d) is hereby recognized as 

6 active military service in the Armed Forces for purposes 

7 of, and to the extent provided in, this section. 

8 (j) ADMINISTRATION.— 

9 (1) The Secretary shall promptly issue applica10 tion forms and instructions to ensure the prompt and 

11 efficient administration of the provisions of this sec12 tion. 

13 (2) The Secretary shall administer the provisions 

14 of this section in a manner consistent with applicable 

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

16 provisions of law, and shall apply the definitions in 

17 section 101 of such title in the administration of such 

18 provisions, except to the extent otherwise provided in 

19 this section. 

20 (k) REPORTS.—The Secretary shall include, in docu21 ments submitted to Congress by the Secretary in support 

22 of the President’s budget for each fiscal year, detailed infor23 mation on the operation of the compensation fund, includ24 ing the number of applicants, the number of eligible persons 

25 receiving benefits, the amounts paid out of the compensa-
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1 tion fund, and the administration of the compensation fund 

2 for the most recent fiscal year for which such data is avail3 able. 

4 (l) AUTHORIZATION OF APPROPRIATION.—There is au5 thorized to be appropriated to the compensation fund 

6 $198,000,000, to remain available until expended, to make 

7 payments under this section. 

8 RELATED AGENCY 

9 DEPARTMENT OF DEFENSE—CIVIL 

10 CEMETERIAL EXPENSES, ARMY

11 SALARY AND EXPENSES

12 For an additional amount for ‘‘Cemeterial Expenses, 

13 Army’’, $60,300,000, to remain available until September 

14 30, 2010, for land development, columbarium construction, 

15 and relocation of utilities at Arlington National Cemetery. 

16 TITLE XI—STATE, FOREIGN OPERATIONS, AND 

17 RELATED PROGRAMS 

18 DEPARTMENT OF STATE 

19 ADMINISTRATION OF FOREIGN AFFAIRS

20 DIPLOMATIC AND CONSULAR PROGRAMS

21 For an additional amount for ‘‘Diplomatic and Con22 sular Programs’’ for urgent domestic facilities require23 ments, $90,000,000, to remain available until September 

24 30, 2010, of which up to $20,000,000 shall be available for 

25 passport facilities and systems, and up to $65,000,000 shall 
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1 be available for a consolidated security training facility in 

2 the United States and should be obligated in accordance 

3 with United States General Services Administration site se4 lection procedures: Provided, That the Secretary of State 

5 shall submit to the Committees on Appropriations within 

6 90 days of enactment of this Act a detailed spending plan 

7 for funds appropriated under this heading: Provided fur8 ther, That with respect to the funds made available for pass9 port facilities and systems, such plan shall be developed in 

10 consultation with the Department of Homeland Security 

11 and the General Services Administration and shall coordi12 nate and co-locate, to the extent feasible, the construction 

13 of passport agencies with other Federal facilities. 

14 CAPITAL INVESTMENT FUND

15 For an additional amount for ‘‘Capital Investment 

16 Fund’’, $228,000,000, to remain available until September 

17 30, 2010, which shall be available for information tech18 nology security and upgrades to support mission-critical 

19 operations: Provided, That the Secretary of State and the 

20 Administrator of the United States Agency for Inter21 national Development shall coordinate information tech22 nology systems, where appropriate, to increase efficiencies 

23 and eliminate redundancies, to include co-location of 

24 backup information management facilities: Provided fur25 ther, That the Secretary of State shall submit to the Com-
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1 mittees on Appropriations within 90 days of enactment of 

2 this Act a detailed spending plan for funds appropriated 

3 under this heading. 

4 OFFICE OF INSPECTOR GENERAL

5 For an additional amount for ‘‘Office of Inspector 

6 General’’ for oversight requirements, $1,500,000, to remain 

7 available until September 30, 2011. 

8 INTERNATIONAL COMMISSIONS 

9 INTERNATIONAL BOUNDARY AND WATER COMMISSION, 

10 UNITED STATES AND MEXICO

11 CONSTRUCTION

12 (INCLUDING TRANSFER OF FUNDS)

13 For an additional amount for ‘‘Construction’’ for the 

14 water quantity program to meet immediate repair and re15 habilitation requirements, $224,000,000, to remain avail16 able until September 30, 2010: Provided, That up to 

17 $2,000,000 may be transferred to, and merged with, funds 

18 available under the heading ‘‘International Boundary and 

19 Water Commission, United States and Mexico—Salaries 

20 and Expenses’’: Provided, That the Secretary of State shall 

21 submit to the Committees on Appropriations within 90 

22 days of enactment of this Act a detailed spending plan for 

23 funds appropriated under this heading. 
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1 UNITED STATES AGENCY FOR INTERNATIONAL 

2 DEVELOPMENT 

3 FUNDS APPROPRIATED TO THE PRESIDENT

4 CAPITAL INVESTMENT FUND

5 For an additional amount for ‘‘Capital Investment 

6 Fund’’, $58,000,000, to remain available until September 

7 30, 2010, which shall be available for information tech8 nology modernization programs and implementation of the 

9 Global Acquisition System: Provided, That the Adminis10 trator of the United States Agency for International Devel11 opment shall submit to the Committees on Appropriations 

12 within 90 days of enactment of this Act a detailed spending 

13 plan for funds appropriated under this heading. 

14 OPERATING EXPENSES OF THE UNITED STATES AGENCY

15 FOR INTERNATIONAL DEVELOPMENT OFFICE OF IN16 SPECTOR GENERAL

17 For an additional amount for ‘‘Operating Expenses of 

18 the United States Agency for International Development 

19 Office of Inspector General’’ for oversight requirements, 

20 $500,000, to remain available until September 30, 2011. 
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1 TITLE XII—TRANSPORTATION AND HOUSING AND 

2 URBAN DEVELOPMENT, AND RELATED AGENCIES 

3 DEPARTMENT OF TRANSPORTATION 

4 OFFICE OF THE SECRETARY

5 SUPPLEMENTAL DISCRETIONARY GRANTS FOR A NATIONAL

6 SURFACE TRANSPORTATION SYSTEM

7 For an additional amount for capital investments in 

8 surface transportation infrastructure, $5,500,000,000, to re9 main available until September 30, 2011: Provided, That 

10 the Secretary of Transportation shall distribute funds pro11 vided under this heading as discretionary grants to be 

12 awarded to State and local governments on a competitive 

13 basis for projects that will have a significant impact on 

14 the Nation, a metropolitan area, or a region: Provided fur15 ther, That projects eligible for funding provided under this 

16 heading shall include, but not be limited to, highway or 

17 bridge projects eligible under title 23, United States Code, 

18 including interstate rehabilitation, improvements to the 

19 rural collector road system, the reconstruction of overpasses 

20 and interchanges, bridge replacements, seismic retrofit 

21 projects for bridges, and road realignments; public trans22 portation projects eligible under chapter 53 of title 49, 

23 United States Code, including investments in projects par24 ticipating in the New Starts or Small Starts programs that 

25 will expedite the completion of those projects and their entry 
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1 into revenue service; passenger and freight rail transpor2 tation projects; and port infrastructure investments, includ3 ing projects that connect ports to other modes of transpor4 tation and improve the efficiency of freight movement: Pro5 vided further, That of the amount made available under this 

6 paragraph, the Secretary may use an amount not to exceed 

7 $200,000,000 for the purpose of paying the subsidy costs 

8 of projects eligible for federal credit assistance under chap9 ter 6 of title 23, United States Code, if the Secretary finds 

10 that such use of the funds would advance the purposes of 

11 this paragraph: Provided further, That in distributing 

12 funds provided under this heading, the Secretary shall take 

13 such measures so as to ensure an equitable geographic dis14 tribution of funds and an appropriate balance in address15 ing the needs of urban and rural communities: Provided 

16 further, That a grant funded under this heading shall be 

17 not less than $20,000,000 and not greater than 

18 $500,000,000: Provided further, That the Federal share of 

19 the costs for which an expenditure is made under this head20 ing may be up to 100 percent: Provided further, That the 

21 Secretary shall give priority to projects that require an ad22 ditional share of Federal funds in order to complete an over23 all financing package, and to projects that are expected to 

24 be completed within 3 years of enactment of this Act: Pro25 vided further, That the Secretary shall publish criteria on 
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1 which to base the competition for any grants awarded under 

2 this heading not later than 75 days after enactment of this 

3 Act: Provided further, That the Secretary shall require ap4 plications for funding provided under this heading to be 

5 submitted not later than 180 days after enactment of this 

6 Act, and announce all projects selected to be funded from 

7 such funds not later than 1 year after enactment of this 

8 Act: Provided further, That the Secretary shall require all 

9 additional applications to be submitted not later than 1 

10 year after enactment of this Act, and announce not later 

11 than 180 days following such 1-year period all additional 

12 projects selected to be funded with funds withdrawn from 

13 States and grantees and transferred from ‘‘Supplemental 

14 Grants for Highway Investments’’ and ‘‘Supplemental 

15 Grants for Public Transit Investment’’: Provided further, 

16 That projects conducted using funds provided under this 

17 heading must comply with the requirements of subchapter 

18 IV of chapter 31 of title 40, United States Code: Provided 

19 further, That the Secretary may retain up to $5,000,000 

20 of the funds provided under this heading, and may transfer 

21 portions of those funds to the Administrators of the Federal 

22 Highway Administration, the Federal Transit Administra23 tion, the Federal Railroad Administration and the Mari24 time Administration, to fund the award and oversight of 

25 grants made under this heading. 
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1 FEDERAL AVIATION ADMINISTRATION

2 SUPPLEMENTAL FUNDING FOR FACILITIES AND EQUIPMENT

3 For an additional amount for necessary investments 

4 in Federal Aviation Administration infrastructure, 

5 $200,000,000: Provided, That funding provided under this 

6 heading shall be used to make improvements to power sys7 tems, air route traffic control centers, air traffic control 

8 towers, terminal radar approach control facilities, and 

9 navigation and landing equipment: Provided further, That 

10 priority be given to such projects or activities that will be 

11 completed within 2 years of enactment of this Act: Provided 

12 further, That amounts made available under this heading 

13 may be provided through grants in addition to the other 

14 instruments authorized under section 106(l)(6) of title 49, 

15 United States Code: Provided further, That the Federal 

16 share of the costs for which an expenditure is made under 

17 this heading shall be 100 percent: Provided further, That 

18 amounts provided under this heading may be used for ex19 penses the agency incurs in administering this program: 

20 Provided further, That not more than 60 days after enact21 ment of this Act, the Administrator shall establish a process 

22 for applying, reviewing and awarding grants and coopera23 tive and other transaction agreements, including the form 

24 and content of an application, and requirements for the 

25 maintenance of records that are necessary to facilitate an 
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1 effective audit of the use of the funding provided: Provided 

2 further, That section 50101 of title 49, United States Code, 

3 shall apply to funds provided under this heading. 

4 SUPPLEMENTAL DISCRETIONARY GRANTS FOR AIRPORT

5 INVESTMENT

6 For an additional amount for capital expenditures au7 thorized under sections 47102(3) and 47504(c) of title 49, 

8 United States Code, and for the procurement, installation 

9 and commissioning of runway incursion prevention devices 

10 and systems at airports of such title, $1,100,000,000: Pro11 vided, That the Secretary of Transportation shall distribute 

12 funds provided under this heading as discretionary grants 

13 to airports, with priority given to those projects that dem14 onstrate to his or her satisfaction their ability to be com15 pleted within 2 years of enactment of this Act, and serve 

16 to supplement and not supplant planned expenditures from 

17 airport-generated revenues or from other State and local 

18 sources on such activities: Provided further, That the Fed19 eral share payable of the costs for which a grant is made 

20 under this heading shall be 100 percent: Provided further, 

21 That the amount made available under this heading shall 

22 not be subject to any limitation on obligations for the 

23 Grants-in-Aid for Airports program set forth in any Act: 

24 Provided further, That section 50101 of title 49, United 

25 States Code, shall apply to funds provided under this head-
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1 ing: Provided further, That projects conducted using funds 

2 provided under this heading must comply with the require3 ments of subchapter IV of chapter 31 of title 40, United 

4 States Code: Provided further, That the Administrator of 

5 the Federal Aviation Administration may retain and trans6 fer to ‘‘Federal Aviation Administration, Operations’’ up 

7 to one-quarter of 1 percent of the funds provided under this 

8 heading to fund the award and oversight by the Adminis9 trator of grants made under this heading. 

10 FEDERAL HIGHWAY ADMINISTRATION

11 SUPPLEMENTAL GRANTS FOR HIGHWAY INVESTMENT

12 For an additional amount for restoration, repair, con13 struction and other activities eligible under paragraph (b) 

14 of section 133 of title 23, United States Code, 

15 $27,060,000,000: Provided, That funds provided under this 

16 heading shall be apportioned to States using the formula 

17 set forth in section 104(b)(3) of such title: Provided further, 

18 That 180 days following the date of such apportionment, 

19 the Secretary of Transportation shall withdraw from each 

20 State an amount equal to 50 percent of the funds awarded 

21 to that grantee less the amount of funding obligated, and 

22 the Secretary shall redistribute such amounts to other States 

23 that have had no funds withdrawn under this proviso in 

24 the manner described in section 120(c) of division K of Pub25 lic Law 110–161: Provided further, That 1 year following 
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1 the date of such apportionment, the Secretary shall with2 draw from each recipient of funds apportioned under this 

3 heading any unobligated funds and transfer such funds to 

4 ‘‘Supplemental Discretionary Grants for a National Sur5 face Transportation System’’: Provided further, That at the 

6 request of a State, the Secretary of Transportation may 

7 provide an extension of such 1-year period only to the extent 

8 that he or she feels satisfied that the State has encountered 

9 extreme conditions that create an unworkable bidding envi10 ronment or other extenuating circumstances: Provided fur11 ther, That before granting a such an extension, the Sec12 retary shall send a letter to the House and Senate Commit13 tees on Appropriations that provides a thorough justifica14 tion for the extension: Provided further, That the provisions 

15 of subsections 133(d)(3) and 133(d)(4) of title 23, United 

16 States Code, shall apply to funds apportioned under this 

17 heading, except that the percentage of funds to be allocated 

18 to local jurisdictions shall be 40 percent and such alloca19 tion, notwithstanding any other provision of law, shall be 

20 conducted in all states within the United States: Provided 

21 further, That funds allocated to such urbanized areas and 

22 other areas shall not be subject to the redistribution of 

23 amounts required 180 days following the date of apportion24 ment of funds provided under this heading: Provided fur25 ther, That funds apportioned under this heading may be 
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1 used for, but not be limited to, projects that address 

2 stormwater runoff, investments in passenger and freight 

3 rail transportation, and investments in port infrastructure: 

4 Provided further, that each State shall use not less than 

5 5 percent of funds apportioned to it for activities eligible 

6 under subsections 149(b) and (c) of title 23, United States 

7 Code: Provided further, That of the funds provided under 

8 this heading, $60,000,000 shall be for capital expenditures 

9 eligible under section 147 of title 23, United States Code: 

10 Provided further, That the Secretary of Transportation 

11 shall distribute such $60,000,000 as competitive discre12 tionary grants to States, with priority given to those 

13 projects that demonstrate to his or her satisfaction their 

14 ability to be completed within 2 years of enactment of this 

15 Act: Provided further, That of the funds provided under this 

16 heading, $500,000,000 shall be for investments in transpor17 tation at Indian reservations and Federal lands, and ad18 ministered in accordance with chapter 2 of title 23, United 

19 States Code: Provided further, That of the funds identified 

20 in the preceding proviso, $320,000,000 shall be for the In21 dian Reservation Roads program, $100,000,000 shall be for 

22 the Park Roads and Parkways program, $70,000,000 shall 

23 be for the Forest Highway Program, and $10,000,000 shall 

24 be for the Refuge Roads program: Provided further, That 

25 for investments at Indian reservations and Federal lands, 
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1 priority shall be given to capital investments, and to 

2 projects and activities that can be completed within 2 years 

3 of enactment of this Act: Provided further, That 1 year fol4 lowing the enactment of this Act, to ensure the prompt use 

5 of the $500,000,000 provided for investments at Indian res6 ervations and Federal lands, the Secretary shall have the 

7 authority to redistribute unobligated funds within the re8 spective program for which the funds were appropriated: 

9 Provided further, That up to 4 percent of the funding pro10 vided for Indian Reservation Roads may be used by the 

11 Secretary of the Interior for program management and 

12 oversight and project-related administrative expenses: Pro13 vided further, That section 134(f)(3)(C)(ii)(II) of title 23, 

14 United States Code, shall not apply to funds provided under 

15 this heading: Provided further, That the Federal share pay16 able on account of any project or activity carried out with 

17 funds made available under this heading shall be at the op18 tion of the recipient, and may be up to 100 percent of the 

19 total cost thereof: Provided further, That funding provided 

20 under this heading shall be in addition to any and all funds 

21 provided for fiscal years 2008 and 2009 in any other Act 

22 for ‘‘Federal-aid Highways’’ and shall not affect the dis23 tribution of funds provided for ‘‘Federal-aid Highways’’ in 

24 any other Act: Provided further, That the amount made 

25 available under this heading shall not be subject to any lim-
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1 itation on obligations for Federal-aid highways or highway 

2 safety construction programs set forth in any Act: Provided 

3 further, That projects conducted using funds provided under 

4 this heading must comply with the requirements of sub5 chapter IV of chapter 31 of title 40, United States Code: 

6 Provided further, That section 313 of title 23, United States 

7 Code, shall apply to funds provided under this heading: 

8 Provided further, That section 1101(b) of Public Law 109– 

9 59 shall apply to funds apportioned under this heading: 

10 Provided further, That for the purposes of the definition of 

11 States for this paragraph, sections 101(a)(32) of title 23, 

12 United States Code, shall apply: Provided further, That the 

13 Administrator of the Federal Highway Administration 

14 may retain up to $12,000,000 of the funds provided under 

15 this heading to carry out the function of the ‘‘Federal High16 way Administration, Limitation on Administrative Ex17 penses’’ and to fund the oversight by the Administrator of 

18 projects and activities carried out with funds made avail19 able to the Federal Highway Administration in this Act. 

20 FEDERAL RAILROAD ADMINISTRATION

21 SUPPLEMENTAL GRANTS TO STATES FOR INTERCITY

22 PASSENGER RAIL SERVICE

23 For an additional amount for discretionary grants to 

24 States to pay for the cost of projects described in paragraphs 

25 (2)(A) and (2)(B) of section 24401 of title 49, United States 
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1 Code, and subsection (b) of section 24105 of such title, 

2 $250,000,000: Provided, That to be eligible for assistance 

3 under this paragraph, the specific project must be on a 

4 Statewide Transportation Improvement Plan at the time 

5 of the application to qualify: Provided further, That the 

6 Secretary of Transportation shall give priority to projects 

7 that demonstrate an ability to be completed within 2 years 

8 of enactment of this Act, and to projects that improve the 

9 safety and reliability of intercity passenger trains: Pro10 vided further, That the Federal share payable of the costs 

11 for which a grant is made under this heading shall be 100 

12 percent: Provided further, That projects conducted using 

13 funds provided under this heading must comply with the 

14 requirements of subchapter IV of chapter 31 of title 40, 

15 United States Code: Provided further, That section 

16 24405(a) of title 49, United States Code, shall apply to 

17 funds provided under this heading: Provided further, That 

18 the Administrator of the Federal Railroad Administration 

19 may retain and transfer to ‘‘Federal Railroad Administra20 tion, Safety and Operations’’ up to one-quarter of 1 percent 

21 of the funds provided under this heading to fund the award 

22 and oversight by the Administrator of grants made under 

23 this heading. 
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1 SUPPLEMENTAL CAPITAL GRANTS TO THE NATIONAL

2 RAILROAD PASSENGER CORPORATION

3 For an additional amount for the immediate invest4 ment in capital projects necessary to maintain and improve 

5 national intercity passenger rail service, including the re6 habilitation of rolling stock, $850,000,000: Provided, That 

7 funds made available under this heading shall be allocated 

8 directly to the National Railroad Passenger Corporation: 

9 Provided further, That the Board of Directors of the cor10 poration shall take measures to ensure that priority is given 

11 to capital projects that expand passenger rail capacity: Pro12 vided further, That the Board of Directors shall take meas13 ures to ensure that projects funded under this heading shall 

14 be completed within 2 years of enactment of this Act, and 

15 shall serve to supplement and not supplant planned expend16 itures for such activities from other Federal, State, local 

17 and corporate sources: Provided further, That said Board 

18 of Directors shall certify to the House and Senate Commit19 tees on Appropriations in writing their compliance with 

20 the preceding proviso: Provided further, That section 

21 24305(f) of title 49, United States Code, shall apply to 

22 funds provided under this heading: Provided further, That 

23 not more than 50 percent of the funds provided under this 

24 heading may be used for capital projects along the North25 east Corridor. 
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1 HIGH-SPEED RAIL CORRIDOR PROGRAM

2 To make grants for high-speed rail projects under the 

3 provisions of section 26106 of title 49, United States Code, 

4 $2,000,000,000, to remain available until September 30, 

5 2011: Provided, That the Federal share payable of the costs 

6 for which a grant is made under this heading shall be 100 

7 percent: Provided further, That the Administrator of the 

8 Federal Railroad Administration may retain and transfer 

9 to ‘‘Federal Railroad Administration, Safety and Oper10 ations’’ up to one-quarter of 1 percent of the funds provided 

11 under this heading to fund the award and oversight by the 

12 Administrator of grants made under this paragraph. 

13 FEDERAL TRANSIT ADMINISTRATION

14 SUPPLEMENTAL GRANTS FOR PUBLIC TRANSIT INVESTMENT

15 For an additional amount for capital expenditures au16 thorized under section 5302(a)(1) of title 49, United States 

17 Code, $8,400,000,000: Provided, That the Secretary of 

18 Transportation shall apportion 71 percent of the funds ap19 portioned under this heading using the formula set forth 

20 in subsections (a) through (c) of section 5336 of title 49, 

21 United States Code, 19 percent of the funds apportioned 

22 under this heading using the formula set forth in section 

23 5340 of such title, and 10 percent of the funding appor24 tioned under this heading using the formula set forth in 

25 subsection 5311(c) of such title: Provided further, That 180 
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1 days following the date of such apportionment, the Sec2 retary shall withdraw from each grantee an amount equal 

3 to 50 percent of the funds awarded to that grantee less the 

4 amount of funding obligated, and the Secretary shall redis5 tribute such amounts to other grantees that have had no 

6 funds withdrawn under this proviso utilizing whatever 

7 method he or she deems appropriate to ensure that all funds 

8 provided under this paragraph shall be utilized promptly: 

9 Provided further, That 1 year following the date of such 

10 apportionment, the Secretary shall withdraw from each 

11 grantee any unobligated funds and transfer such funds to 

12 ‘‘Supplemental Discretionary Grants for a National Sur13 face Transportation System’’: Provided further, That at the 

14 request of a grantee, the Secretary of Transportation may 

15 provide an extension of such 1-year periods if he or she feels 

16 satisfied that the grantee has encountered an unworkable 

17 bidding environment or other extenuating circumstances: 

18 Provided further, That before granting such an extension, 

19 the Secretary shall send a letter to the House and Senate 

20 Committees on Appropriations that provides a thorough 

21 justification for the extension: Provided further, That of the 

22 funds apportioned using the formula set forth in subsection 

23 5311(c) of title 49, United States Code, 2 percent shall be 

24 made available for section 5311(c)(1): Provided further, 

25 That of the funding provided under this heading, 
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1 $200,000,000 shall be distributed as discretionary grants to 

2 public transit agencies for capital investments that will as3 sist in reducing the energy consumption or greenhouse gas 

4 emissions of their public transportation systems: Provided 

5 further, That for such grants on energy-related investments, 

6 priority shall be given to projects based on the total energy 

7 savings that are projected to result from the investment, and 

8 projected energy savings as a percentage of the total energy 

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

10 the Federal share of the costs for which any grant is made 

11 under this heading shall be at the option of the recipient, 

12 and may be up to 100 percent: Provided further, That the 

13 amount made available under this heading shall not be sub14 ject to any limitation on obligations for transit programs 

15 set forth in any Act: Provided further, That section 1101(b) 

16 of Public Law 109–59 shall apply to funds apportioned 

17 under this heading: Provided further, That the funds appro18 priated under this heading shall be subject to subsection 

19 5323(j) and section 5333 of title 49, United States Code 

20 as well as sections 5304 and 5305 of said title, as appro21 priate, but shall not be comingled with funds available 

22 under the Formula and Bus Grants account: Provided fur23 ther, That the Administrator of the Federal Transit Admin24 istration may retain up to $3,000,000 of the funds provided 

25 under this heading to carry out the function of ‘‘Federal 
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1 Transit Administration, Administrative Expenses’’ and to 

2 fund the oversight of grants made under this heading by 

3 the Administrator. 

4 MARITIME ADMINISTRATION

5 SUPPLEMENTAL GRANTS FOR ASSISTANCE TO SMALL

6 SHIPYARDS

7 To make grants to qualified shipyards as authorized 

8 under section 3506 of Public Law 109–163 or section 54101 

9 of title 46, United States Code, $100,000,000: Provided, 

10 That the Secretary of Transportation shall institute meas11 ures to ensure that funds provided under this heading shall 

12 be obligated within 180 days of the date of their distribu13 tion: Provided further, That the Maritime Administrator 

14 may retain and transfer to ‘‘Maritime Administration, Op15 erations and Training’’ up to 2 percent of the funds pro16 vided under this heading to fund the award and oversight 

17 by the Administrator of grants made under this heading. 

18 OFFICE OF INSPECTOR GENERAL

19 SALARIES AND EXPENSES

20 For an additional amount for necessary expenses of 

21 the Office of Inspector General to carry out the provisions 

22 of the Inspector General Act of 1978, as amended, 

23 $7,750,000, to remain available until September 30, 2011, 

24 and an additional $12,250,000 for such purposes, to remain 

25 available until September 30, 2012: Provided, That the 
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1 funding made available under this heading shall be used 

2 for conducting audits and investigations of projects and ac3 tivities carried out with funds made available in this Act 

4 to the Department of Transportation and to the National 

5 Railroad Passenger Corporation: Provided further, That the 

6 Inspector General shall have all necessary authority, in car7 rying out the duties specified in the Inspector General Act, 

8 as amended (5 U.S.C. App. 3), to investigate allegations 

9 of fraud, including false statements to the Government (18 

10 U.S.C. 1001), by any person or entity that is subject to 

11 regulation by the Department. 

12 GENERAL PROVISION—DEPARTMENT OF 

13 TRANSPORTATION 

14 SEC. 1201. Section 5309(g)(4)(A) of title 49, United 

15 States Code, is amended by striking ‘‘or an amount equiva16 lent to the last 3 fiscal years of funding allocated under 

17 subsections (m)(1)(A) and (m)(2)(A)(ii)’’ and inserting ‘‘or 

18 the sum of the funds available for the next 3 fiscal years 

19 beyond the current fiscal year, assuming an annual growth 

20 of the program of 10 percent’’. 

21 DEPARTMENT OF HOUSING AND URBAN 

22 DEVELOPMENT 

23 NATIVE AMERICAN HOUSING BLOCK GRANTS

24 For an additional amount for ‘‘Native American 

25 Housing Block Grants’’, as authorized under title I of the 
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1 Native American Housing Assistance and Self-Determina2 tion Act of 1996 (‘‘NAHASDA’’) (25 U.S.C. 4111 et seq.), 

3 $510,000,000, to remain available until September 30, 

4 2011: Provided, That $255,000,000 of the amount provided 

5 under this heading shall be distributed according to the 

6 same funding formula used in fiscal year 2008: Provided 

7 further, That in selecting projects to be funded, recipients 

8 shall give priority to projects that can award contracts 

9 based on bids within 180 days from the date that funds 

10 are available to recipients: Provided further, That the Sec11 retary shall obligate $255,000,000 of the amount provided 

12 under this heading for competitive grants to eligible entities 

13 that apply for funds authorized under NAHASDA: Pro14 vided further, That in awarding competitive funds, the Sec15 retary shall give priority to projects that will spur construc16 tion and rehabilitation and will create employment oppor17 tunities for low-income and unemployed persons: Provided 

18 further, That recipients of funds under this heading shall 

19 obligate 100 percent of such funds within 1 year of the date 

20 of enactment of this Act, expend at least 50 percent of such 

21 funds within 2 years of the date on which funds become 

22 available to such jurisdictions for obligation, and expend 

23 100 percent of such funds within 3 years of such date: Pro24 vided further, That if a recipient fails to comply with either 

25 the 1-year obligation requirement or the 2-year expenditure 
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1 requirement, the Secretary shall recapture all remaining 

2 funds awarded to the recipient and reallocate such funds 

3 to recipients that are in compliance with those require4 ments: Provided further, That if a recipient fails to comply 

5 with the 3-year expenditure requirement, the Secretary 

6 shall recapture the balance of the funds awarded to the re7 cipient: Provided further, That, notwithstanding any other 

8 provision of this paragraph, the Secretary may institute 

9 measures to ensure participation in the formula and com10 petitive allocation of funds provided under this paragraph 

11 by any housing entity eligible to receive funding under title 

12 VIII of NAHASDA (25 U.S.C. 4221 et seq.): Provided fur13 ther, That in administering funds provided in this heading, 

14 the Secretary may waive any provision of any statute or 

15 regulation that the Secretary administers in connection 

16 with the obligation by the Secretary or the use by the recipi17 ent of these funds except for requirements imposed by this 

18 heading and requirements related to fair housing, non19 discrimination, labor standards, and the environment, 

20 upon a finding that such waiver is required to facilitate 

21 the timely use of such funds and would not be inconsistent 

22 with the overall purpose of the statute or regulation: Pro23 vided further, That, of the funds made available under this 

24 heading, up to 1 percent shall be available for staffing, 

25 training, technical assistance, technology, monitoring, re-
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1 search and evaluation activities: Provided further, That 

2 any funds made available under this heading used by the 

3 Secretary for personnel expenses shall be transferred to and 

4 merged with funding provided to ‘‘Personnel Compensation 

5 and Benefits, Office of Public and Indian Housing’’: Pro6 vided further, That any funds made available under this 

7 heading used by the Secretary for training or other admin8 istrative expenses shall be transferred to and merged with 

9 funding provided to ‘‘Administration, Operations, and 

10 Management’’, for non-personnel expenses of the Depart11 ment of Housing and Urban Development: Provided fur12 ther, That any funds made available under this heading 

13 used by the Secretary for technology shall be transferred to 

14 and merged with the funding provided to ‘‘Working Capital 

15 Fund’’. 

16 PUBLIC HOUSING CAPITAL FUND

17 For an additional amount for the ‘‘Public Housing 

18 Capital Fund’’ to carry out capital and management ac19 tivities for public housing agencies, as authorized under sec20 tion 9 of the United States Housing Act of 1937 (42 U.S.C. 

21 1437g) (the ‘‘Act’’), $5,000,000,000, to remain available 

22 until September 30, 2011: Provided, That the Secretary of 

23 Housing and Urban Development shall allocate 

24 $3,000,000,000 of this amount by the formula authorized 

25 under section 9(d)(2) of the Act, except that the Secretary 
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1 may determine not to allocate funding to public housing 

2 agencies currently designated as troubled or to public hous3 ing agencies that elect not to accept such funding: Provided 

4 further, That the Secretary shall make available 

5 $2,000,000,000 by competition for priority investments, in6 cluding investments that leverage private sector funding or 

7 financing for renovations and energy conservation retrofit 

8 investments: Provided further, That public housing agencies 

9 shall prioritize capital projects that are already underway 

10 or included in the 5-year capital fund plans required by 

11 the Act (42 U.S.C. 1437c–1(a)): Provided further, That in 

12 allocating competitive grants under this heading, the Sec13 retary shall give priority consideration to the rehabilitation 

14 of vacant rental units: Provided further, That notwith15 standing any other provision of law, (1) funding provided 

16 herein may not be used for operating or rental assistance 

17 activities, and (2) any restriction of funding to replacement 

18 housing uses shall be inapplicable: Provided further, That 

19 notwithstanding any other provision of law, the Secretary 

20 shall institute measures to ensure that funds provided under 

21 this heading shall serve to supplement and not supplant 

22 expenditures from other Federal, State, or local sources or 

23 funds independently generated by the grantee: Provided fur24 ther, That notwithstanding section 9(j), public housing 

25 agencies shall obligate 100 percent of the funds within 1 
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1 year of the date of enactment of this Act, shall expend at 

2 least 60 percent of funds within 2 years of the date on which 

3 funds become available to the agency for obligation, and 

4 shall expend 100 percent of the funds within 3 years of such 

5 date: Provided further, That if a public housing agency fails 

6 to comply with either the 1-year obligation requirement or 

7 the 2-year expenditure requirement, the Secretary shall re8 capture all remaining funds awarded to the public housing 

9 agency and reallocate such funds to agencies that are in 

10 compliance with those requirements: Provided further, That 

11 if a public housing agency fails to comply with the 3-year 

12 expenditure requirement, the Secretary shall recapture the 

13 balance of the funds awarded to the public housing agency: 

14 Provided further, That in administering funds provided in 

15 this heading, the Secretary may waive any provision of any 

16 statute or regulation that the Secretary administers in con17 nection with the obligation by the Secretary or the use by 

18 the recipient of these funds except for requirements imposed 

19 by this heading and requirements related to conditions on 

20 use of funds for development and modernization, fair hous21 ing, non-discrimination, labor standards, and the environ22 ment, upon a finding that such waiver is required to facili23 tate the timely use of such funds and would not be incon24 sistent with the overall purpose of the statute or regulation: 

25 Provided further, That of the funds made available under 
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1 this heading, up to 1 percent shall be available for staffing, 

2 training, technical assistance, technology, monitoring, re3 search and evaluation activities: Provided further, That 

4 any funds made available under this heading used by the 

5 Secretary for personnel expenses shall be transferred to and 

6 merged with funding provided to ‘‘Personnel Compensation 

7 and Benefits, Office of Public and Indian Housing’’: Pro8 vided further, That any funds made available under this 

9 heading used by the Secretary for training or other admin10 istrative expenses shall be transferred to and merged with 

11 funding provided to ‘‘Administration, Operations, and 

12 Management’’, for non-personnel expenses of the Depart13 ment of Housing and Urban Development: Provided fur14 ther, That any funds made available under this heading 

15 used by the Secretary for technology shall be transferred to 

16 and merged with the funding provided to ‘‘Working Capital 

17 Fund’’. 

18 HOME INVESTMENT PARTNERSHIPS PROGRAM

19 For an additional amount for the ‘‘HOME Investment 

20 Partnerships Program’’ as authorized under title II of the 

21 Cranston-Gonzalez National Affordable Housing Act (the 

22 ‘‘Act’’), $250,000,000, to remain available until September 

23 30, 2011: Provided, That except as specifically provided 

24 herein, funds provided under this heading shall be distrib25 uted pursuant to the formula authorized by section 217 of 
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1 the Act: Provided further, That the Secretary may establish 

2 a minimum grant size: Provided further, That partici3 pating jurisdictions shall obligate 100 percent of the funds 

4 within 1 year of the date of enactment of this Act, shall 

5 expend at least 60 percent of funds within 2 years of the 

6 date on which funds become available to the participating 

7 jurisdiction for obligation and shall expend 100 percent of 

8 the funds within 3 years of such date: Provided further, 

9 That if a participating jurisdiction fails to comply with 

10 either the 1-year obligation requirement or the 2-year ex11 penditure requirement, the Secretary shall recapture all re12 maining funds awarded to the participating jurisdiction 

13 and reallocate such funds to participating jurisdictions that 

14 are in compliance with those requirements: Provided fur15 ther, That if a participating jurisdiction fails to comply 

16 with the 3-year expenditure requirement, the Secretary 

17 shall recapture the balance of the funds awarded to the par18 ticipating jurisdiction: Provided further, That in admin19 istering funds under this heading, the Secretary may waive 

20 any provision of any statute or regulation that the Sec21 retary administers in connection with the obligation by the 

22 Secretary or the use by the recipient of these funds except 

23 for requirements imposed by this heading and requirements 

24 related to fair housing, non-discrimination, labor standards 

25 and the environment, upon a finding that such waiver is 
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1 required to facilitate the timely use of such funds and would 

2 not be inconsistent with the overall purpose of the statute 

3 or regulation: Provided further, That the Secretary may use 

4 funds provided under this heading to provide incentives to 

5 grantees to use funding for investments in energy efficiency 

6 and green building technology: Provided further, That such 

7 incentives may include allocation of up to 20 percent of 

8 funds made available under this heading other than pursu9 ant to the formula authorized by section 217 of the Act: 

10 Provided further, That, of the funds made available under 

11 this heading, up to 1 percent shall be available for staffing, 

12 training, technical assistance, technology, monitoring, re13 search and evaluation activities: Provided further, That 

14 any funds made available under this heading used by the 

15 Secretary for personnel expenses shall be transferred to and 

16 merged with funding provided to ‘‘Personnel Compensation 

17 and Benefits, Office of Community Planning and Develop18 ment’’: Provided further, That any funds made available 

19 under this heading used by the Secretary for training or 

20 other administrative expenses shall be transferred to and 

21 merged with funding provided to ‘‘Administration, Oper22 ations, and Management’’, for non-personnel expenses of the 

23 Department of Housing and Urban Development: Provided 

24 further, That any funds made available under this heading 

25 used by the Secretary for technology shall be transferred to 
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1 and merged with the funding provided to ‘‘Working Capital 

2 Fund’’. 

3 For an additional amount for capital investments in 

4 low-income housing tax credit projects, $2,000,000,000, to 

5 remain available until September 30, 2011: Provided, That 

6 the funds shall be allocated to States under the HOME pro7 gram under this Heading shall be made available to State 

8 housing finance agencies in an amount totaling 

9 $2,000,000,000, subject to any changes made to a State allo10 cation for the benefit of a State by the Secretary of Housing 

11 and Urban Development for areas that have suffered from 

12 disproportionate job loss and foreclosure: Provided further, 

13 That the Secretary, in consultation with the States, shall 

14 determine the amount of funds each State shall have avail15 able under HOME: Provided further, That the State hous16 ing finance agencies (including for purposes throughout this 

17 heading any entity that is responsible for distributing low18 income housing tax credits) or as appropriate as an entity 

19 as a gap financer, shall distribute these funds competitively 

20 under this heading to housing developers for projects eligible 

21 for funding (such terms including those who may have re22 ceived funding) under the low-income housing tax credit 

23 program as provided under section 42 of the I.R.C. of 1986, 

24 with a review of both the decisionmaking and process for 

25 the award by the Secretary of Housing and Urban Develop-
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1 ment: Provided further, That funds under this heading must 

2 be awarded by State housing finance agencies within 120 

3 days of enactment of the Act and obligated by the developer 

4 of the low-income housing tax credit project within one year 

5 of the date of enactment of this Act, shall expend 75 percent 

6 of the funds within two years of the date on which the funds 

7 become available, and shall expend 100 percent of the funds 

8 within 3 years of such date: Provided further, That failure 

9 by a developer to expend funds within the parameters re10 quired within the previous proviso shall result in a redis11 tribution of these funds by a State housing finance agency 

12 or by the Secretary if there is a more deserving project in 

13 another jurisdiction: Provided further, That projects award14 ed tax credits within 3 years prior to the date of enactment 

15 of this Act shall be eligible for funding under this heading: 

16 Provided further, That as part of the review, the Secretary 

17 shall ensure equitable distribution of funds and an appro18 priate balance in addressing the needs of urban and rural 

19 communities with a special priority on areas that have suf20 fered from excessive job loss and foreclosures: Provided fur21 ther, That State housing finance agencies shall give priority 

22 to projects that require an additional share of Federal funds 

23 in order to complete an overall funding package, and to 

24 projects that are expected to be completed within 3 years 

25 of enactment: Provided further, That any assistance pro-
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1 vided to an eligible low-income housing tax credit project 

2 under this heading shall be made in the same manner and 

3 be subject to the same limitations (including rent, income, 

4 and use restrictions) as an allocation of the housing credit 

5 amount allocated by the State housing finance agency 

6 under section 42 of the I.R.C. of 1986, except that such as7 sistance shall not be limited by, or otherwise affect (except 

8 as provided in subsection (h)(3)(J) of such section), the 

9 State housing finance agency applicable to such agency: 

10 Provided further, That the State housing finance agency 

11 shall perform asset management functions to ensure compli12 ance with section 42 of the I.R.C. of 1986, and the long 

13 term viability of buildings funded by assistance under this 

14 heading: Provided further, That the term basis (as such 

15 term is defined in such section 42) of a qualified low-income 

16 housing tax credit building receiving assistance under this 

17 heading shall not be reduced by the amount of any grant 

18 described under this heading: Provided further, That the 

19 Secretary shall collect all information related to the award 

20 of Federal funds from state housing finance agencies and 

21 establish an internet site that shall identify all projects se22 lected for an award, including the amount of the award 

23 as well as the process and all information that was used 

24 to make the award decision. 
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1 HOMELESSNESS PREVENTION FUND

2 For homelessness prevention activities, $1,500,000,000, 

3 to remain available until September 30, 2011: Provided, 

4 That funds provided under this heading shall be used for 

5 the provision of short-term or medium-term rental assist6 ance; housing relocation and stabilization services includ7 ing housing search, mediation or outreach to property own8 ers, credit repair, security or utility deposits, utility pay9 ments, rental assistance for a final month at a location, 

10 and moving cost assistance; or other appropriate homeless11 ness prevention activities: Provided further, That grantees 

12 receiving such assistance shall collect data on the use of the 

13 funds awarded and persons served with this assistance in 

14 the Homeless Management Information System (HMIS) or 

15 other comparable database: Provided further, That grantees 

16 may use up to 5 percent of any grant for administrative 

17 costs: Provided further, That funding made available under 

18 this heading shall be allocated to eligible grantees (as de19 fined and designated in sections 411 and 412 of subtitle 

20 B of title IV of the McKinney-Vento Homeless Assistance 

21 Act, (the ‘‘Act’’)) pursuant to the formula authorized by sec22 tion 413 of the Act: Provided further, That the Secretary 

23 may establish a minimum grant size: Provided further, 

24 That grantees shall expend at least 75 percent of funds with25 in 2 years of the date that funds became available to them 
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1 for obligation, and 100 percent of funds within 3 years of 

2 such date, and the Secretary may recapture unexpended 

3 funds in violation of the 2-year expenditure requirement 

4 and reallocate such funds to grantees in compliance with 

5 that requirement: Provided further, That the Secretary may 

6 waive statutory or regulatory provisions (except provisions 

7 for fair housing, nondiscrimination, labor standards, and 

8 the environment) necessary to facilitate the timely expendi9 ture of funds: Provided further, That the Secretary shall 

10 publish a notice to establish such requirements as may be 

11 necessary to carry out the provisions of this section within 

12 30 days of enactment of the Act and that this notice shall 

13 take effect upon issuance: Provided further, That of the 

14 funds provided under this heading, up to 1.5 percent shall 

15 be available for staffing, training, technical assistance, tech16 nology, monitoring, research and evaluation activities: Pro17 vided further, That any funds made available under this 

18 heading used by the Secretary for personnel expense shall 

19 be transferred to and merged with funding provided to 

20 ‘‘Community Planning and Development Personnel Com21 pensation and Benefits’’: Provided further, That any funds 

22 made available under this heading used by the Secretary 

23 for training or other administrative expenses shall be trans24 ferred to and merged with funding provided to ‘‘Adminis25 tration, Operations, and Management’’ for non-personnel 
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1 expenses of the Department of Housing and Urban Develop2 ment: Provided further, That any funding made available 

3 under this heading used by the Secretary for technology 

4 shall be transferred to and merged with the funding pro5 vided to ‘‘Working Capital Fund.’’ 

6 ASSISTED HOUSING STABILITY AND ENERGY AND GREEN

7 RETROFIT INVESTMENTS

8 For assistance to owners of properties receiving 

9 project-based assistance pursuant to section 202 of the 

10 Housing Act of 1959 (12 U.S.C. 17012), section 811 of the 

11 Cranston-Gonzalez National Affordable Housing Act (42 

12 U.S.C. 8013), or section 8 of the United States Housing 

13 Act of 1937 as amended (42 U.S.C. 1437f), $2,250,000,000, 

14 of which $2,132,000,000 shall be for an additional amount 

15 for paragraph (1) under the heading ‘‘Project-Based Rental 

16 Assistance’’ in Public Law 110–161 for payments to owners 

17 for 12-month periods, and of which $118,000,000 shall be 

18 for grants or loans for energy retrofit and green investments 

19 in such assisted housing: Provided, That projects funded 

20 with grants or loans provided under this heading must com21 ply with the requirements of subchapter IV of chapter 31 

22 of title 40, United States Code: Provided further, That such 

23 grants or loans shall be provided through the existing poli24 cies, procedures, contracts, and transactional infrastructure 

25 of the authorized programs administered by the Office of 
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1 Affordable Housing Preservation of the Department of 

2 Housing and Urban Development, on such terms and condi3 tions as the Secretary of Housing and Urban Development 

4 deems appropriate to ensure the maintenance and preserva5 tion of the property, the continued operation and mainte6 nance of energy efficiency technologies, and the timely ex7 penditure of funds: Provided further, That the Secretary 

8 may provide incentives to owners to undertake energy or 

9 green retrofits as a part of such grant or loan terms, includ10 ing, but not limited to, investment fees to cover oversight 

11 and implementation costs incurred by said owner, or to en12 courage job creation for low-income or very low-income in13 dividuals: Provided further, That the grants or loans shall 

14 include a financial assessment and physical inspection of 

15 such property: Provided further, That eligible owners must 

16 have at least a satisfactory management review rating, be 

17 in substantial compliance with applicable performance 

18 standards and legal requirements, and commit to an addi19 tional period of affordability determined by the Secretary, 

20 but of not fewer than 15 years: Provided further, That the 

21 Secretary shall undertake appropriate underwriting and 

22 oversight with respect to grant and loan transactions and 

23 may set aside up to 5 percent of the funds made available 

24 under this heading for grants or loans for such purpose: 

25 Provided further, That the Secretary shall take steps nec-
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1 essary to ensure that owners receiving funding for energy 

2 and green retrofit investments under this heading shall ex3 pend such funding within 2 years of the date they received 

4 the funding: Provided further, That the Secretary may 

5 waive or modify statutory or regulatory requirements with 

6 respect to any existing grant, loan, or insurance mechanism 

7 authorized to be used by the Secretary to enable or facilitate 

8 the accomplishment of investments supported with funds 

9 made available under this heading for grants or loans: Pro10 vided further, That of the funds provided under this head11 ing, up to 1.5 percent shall be available for staffing, train12 ing, technical assistance, technology, monitoring, research 

13 and evaluation activities: Provided further, That funding 

14 made available under this heading and used by the Sec15 retary for personnel expenses shall be transferred to and 

16 merged with funding provided to ‘‘Housing Compensation 

17 and Benefits’’: Provided further, That any funding made 

18 available under this heading used by the Secretary for 

19 training and other administrative expenses shall be trans20 ferred to and merged with funding provided to ‘‘Adminis21 tration, Operations and Management’’ for non-personnel 

22 expenses of the Department of Housing and Urban Develop23 ment: Provided further, That any funding made available 

24 under this heading used by the Secretary for technology 
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1 shall be transferred to and merged with funding provided 

2 to ‘‘Working Capital Fund.’’ 

3 OFFICE OF HEALTHY HOMES AND LEAD HAZARD

4 CONTROL

5 For an additional amount for the ‘‘Lead Hazard Re6 duction’’, as authorized by section 1011 of the Residential 

7 Lead-Based Paint Hazard Reduction Act of 1992, 

8 $100,000,000, to remain available until September 30, 

9 2011: Provided, That funds shall be awarded first to appli10 cant jurisdictions which had applied under the Lead-Based 

11 Paint Hazard Control Grant Program Notice of Funding 

12 Availability for fiscal year 2008, and were found in the 

13 application review to be qualified for award, but were not 

14 awarded because of funding limitations, and that any funds 

15 which remain after reservation of funds for such grants 

16 shall be added to the amount of funds to be awarded under 

17 the Lead-Based Paint Hazard Control Grant Program No18 tice of Funding Availability for fiscal year 2009: Provided 

19 further, That each applicant jurisdiction for the Lead20 Based Paint Hazard control Grant Program Notice of 

21 Funding Availability for fiscal year 2009 shall submit a 

22 detailed plan and strategy that demonstrates adequate ca23 pacity that is acceptable to the Secretary to carry out the 

24 proposed use of funds: Provided further, That recipients of 

25 funds under this heading shall obligate 100 percent of such 
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1 funds within 1 year of the date of enactment of this Act, 

2 expend at least 75 percent of such funds within 2 years 

3 of the date on which funds become available to such jurisdic4 tions for obligation, and expend 100 percent of such funds 

5 within 3 years of such date: Provided further, That if a 

6 recipient fails to comply with either the 1-year obligation 

7 requirement or the 2-year expenditure requirement, the Sec8 retary shall recapture all remaining funds awarded to the 

9 recipient and reallocate such funds to recipients that are 

10 in compliance with those requirements: Provided further, 

11 That if a recipient fails to comply with the 3-year expendi12 ture requirement, the Secretary shall recapture the balance 

13 of the funds awarded to the recipient: Provided further, 

14 That in administering funds provided in this heading, the 

15 Secretary may waive any provision of any statute or regu16 lation that the Secretary administers in connection with 

17 the obligation by the Secretary or the use by the recipient 

18 of these funds except for requirements imposed by this head19 ing and requirements related to fair housing, non20 discrimination, labor standards, and the environment, 

21 upon a finding that such waiver is required to facilitate 

22 the timely use of such funds and would not be inconsistent 

23 with the overall purpose of the statute or regulation: Pro24 vided further, That, of the funds made available under this 

25 heading, up to 1 percent shall be available for staffing, 
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1 training, technical assistance, technology, monitoring, re2 search and evaluation activities: Provided further, That 

3 any funds made available under this heading used by the 

4 Secretary for personnel expenses shall be transferred to and 

5 merged with funding provided to ‘‘Personnel Compensation 

6 and Benefits, Office of Healthy Homes and Lead Hazard 

7 Control’’: Provided further, That any funds made available 

8 under this heading used by the Secretary for training or 

9 other administrative expenses shall be transferred to and 

10 merged with funding provided to ‘‘Administration, Oper11 ations, and Management’’, for non-personnel expenses of the 

12 Department of Housing and Urban Development: Provided 

13 further, That any funds made available under this heading 

14 used by the Secretary for technology shall be transferred to 

15 and merged with the funding provided to ‘‘Working Capital 

16 Fund’’. 

17 OFFICE OF INSPECTOR GENERAL

18 For an additional amount for the necessary salaries 

19 and expenses of the Office of Inspector General in carrying 

20 out the Inspector General Act of 1978, as amended, 

21 $2,750,000, to remain available until September 30, 2011, 

22 and an additional $12,250,000 for such purposes, to remain 

23 available until September 30, 2012: Provided, That the In24 spector General shall have independent authority over all 

25 personnel issues within this office. 
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1 TITLE XIII—HEALTH 

2 INFORMATION TECHNOLOGY 

3 SEC. 1301. SHORT TITLE. 

4 This title may be cited as the ‘‘Health Information 

5 Technology for Economic and Clinical Health Act’’ or the 

6 ‘‘HITECH Act’’. 

7 Subtitle A—Promotion of Health 

8 Information Technology 

9 PART I—IMPROVING HEALTH CARE QUALITY, 

10 SAFETY, AND EFFICIENCY 

11 SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT AND 

12 ADOPTION. 

13 The Public Health Service Act (42 U.S.C. 201 et seq.) 

14 is amended by adding at the end the following: 

15 ‘‘TITLE XXX—HEALTH INFORMA16 TION TECHNOLOGY AND 

17 QUALITY 

18 ‘‘SEC. 3000. DEFINITIONS. 

19 ‘‘In this title: 

20 ‘‘(1) CERTIFIED EHR TECHNOLOGY.—The term 

21 ‘certified EHR technology’ means a qualified elec22 tronic health record and that is certified pursuant to 

23 section 3001(c)(5) as meeting standards adopted 

24 under section 3004 that are applicable to the type of 

25 record involved (as determined by the Secretary, such 
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1 as an ambulatory electronic health record for office2 based physicians or an inpatient hospital electronic 

3 health record for hospitals). 

4 ‘‘(2) ENTERPRISE INTEGRATION.—The term ‘en5 terprise integration’ means the electronic linkage of 

6 health care providers, health plans, the government, 

7 and other interested parties, to enable the electronic 

8 exchange and use of health information among all the 

9 components in the health care infrastructure in ac10 cordance with applicable law, and such term includes 

11 related application protocols and other related stand12 ards. 

13 ‘‘(3) HEALTH CARE PROVIDER.—The term 

14 ‘health care provider’ means a hospital, skilled nurs15 ing facility, nursing facility, home health entity, or 

16 other long-term care facility, health care clinic, com17 munity mental health center (as defined in section 

18 1913(b)), renal dialysis facility, blood center, ambula19 tory surgical center described in section 1833(i) of the 

20 Social Security Act, emergency medical services pro21 vider, Federally qualified health center, group prac22 tice (as defined in section 1877(h)(4) of the Social Se23 curity Act), a pharmacist, a pharmacy, a laboratory, 

24 a physician (as defined in section 1861(r) of the So25 cial Security Act), a practitioner (as described in sec-
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1 tion 1842(b)(18)(C) of the Social Security Act), a 

2 provider operated by, or under contract with, the In3 dian Health Service or by an Indian tribe (as defined 

4 in the Indian Self-Determination and Education As5 sistance Act), tribal organization, or urban Indian 

6 organization (as defined in section 4 of the Indian 

7 Health Care Improvement Act), a rural health clinic, 

8 a covered entity under section 340B, and any other 

9 category of facility or clinician determined appro10 priate by the Secretary. 

11 ‘‘(4) HEALTH INFORMATION.—The term ‘health 

12 information’ has the meaning given such term in sec13 tion 1171(4) of the Social Security Act. 

14 ‘‘(5) HEALTH INFORMATION TECHNOLOGY.—The 

15 term ‘health information technology’ includes hard16 ware, software, integrated technologies and related li17 censes, intellectual property, upgrades, and packaged 

18 solutions sold as services for use by health care enti19 ties for the electronic creation, maintenance, access or 

20 exchange of health information. 

21 ‘‘(6) HEALTH PLAN.—The term ‘health plan’ has 

22 the meaning given such term in section 1171(5) of the 

23 Social Security Act. 
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1 ‘‘(7) HIT POLICY COMMITTEE.—The term ‘HIT 

2 Policy Committee’ means such Committee established 

3 under section 3002(a). 

4 ‘‘(8) HIT STANDARDS COMMITTEE.—The term 

5 ‘HIT Standards Committee’ means such Committee 

6 established under section 3003(a). 

7 ‘‘(9) INDIVIDUALLY IDENTIFIABLE HEALTH IN8 FORMATION.—The term ‘individually identifiable 

9 health information’ has the meaning given such term 

10 in section 1171(6) of the Social Security Act. 

11 ‘‘(10) LABORATORY.—The term ‘laboratory’ has 

12 the meaning given such term in section 353(a). 

13 ‘‘(11) NATIONAL COORDINATOR.—The term ‘Na14 tional Coordinator’ means the head of the Office of the 

15 National Coordinator for Health Information Tech16 nology established under section 3001(a). 

17 ‘‘(12) PHARMACIST.—The term ‘pharmacist’ has 

18 the meaning given such term in section 804(2) of the 

19 Federal Food, Drug, and Cosmetic Act. 

20 ‘‘(13) QUALIFIED ELECTRONIC HEALTH

21 RECORD.—The term ‘qualified electronic health 

22 record’ means an electronic record of health-related 

23 information on an individual that— 
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1 ‘‘(A) includes patient demographic and 

2 clinical health information, such as medical his3 tory and problem lists; and 

4 ‘‘(B) has the capacity— 

5 ‘‘(i) to provide clinical decision sup6 port; 

7 ‘‘(ii) to support physician order entry; 

8 ‘‘(iii) to capture and query informa9 tion relevant to health care quality; and 

10 ‘‘(iv) to exchange electronic health in11 formation with, and integrate such infor12 mation from other sources. 

13 ‘‘(14) STATE.—The term ‘State’ means each of 

14 the several States, the District of Columbia, Puerto 

15 Rico, the Virgin Islands, Guam, American Samoa, 

16 and the Northern Mariana Islands. 

17 ‘‘Subtitle A—Promotion of Health 

18 Information Technology 

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

20 HEALTH INFORMATION TECHNOLOGY. 

21 ‘‘(a) ESTABLISHMENT.—There is established within 

22 the Department of Health and Human Services an Office 

23 of the National Coordinator for Health Information Tech24 nology (referred to in this section as the ‘Office’). The Office 

25 shall be headed by a National Coordinator who shall be ap-
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1 pointed by the Secretary and shall report directly to the 

2 Secretary. 

3 ‘‘(b) PURPOSE.—The National Coordinator shall per4 form the duties under subsection (c) in a manner consistent 

5 with the development of a nationwide health information 

6 technology infrastructure that allows for the electronic use 

7 and exchange of information and that— 

8 ‘‘(1) ensures that each patient’s health informa9 tion is secure and protected, in accordance with ap10 plicable law; 

11 ‘‘(2) improves health care quality, reduces med12 ical errors, and advances the delivery of patient-cen13 tered medical care; 

14 ‘‘(3) reduces health care costs resulting from inef15 ficiency, medical errors, inappropriate care, duplica16 tive care, and incomplete information; 

17 ‘‘(4) provides appropriate information to help 

18 guide medical decisions at the time and place of care; 

19 ‘‘(5) ensures the inclusion of meaningful public 

20 input in such development of such infrastructure; 

21 ‘‘(6) improves the coordination of care and infor22 mation among hospitals, laboratories, physician of23 fices, and other entities through an effective infra24 structure for the secure and authorized exchange of 

25 health care information; 
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1 ‘‘(7) improves public health activities and facili2 tates the early identification and rapid response to 

3 public health threats and emergencies, including bio4 terror events and infectious disease outbreaks; 

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

6 health care quality; 

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

8 management of chronic diseases; 

9 ‘‘(10) promotes a more effective marketplace, 

10 greater competition, greater systems analysis, in11 creased consumer choice, and improved outcomes in 

12 health care services; and 

13 ‘‘(11) improves efforts to reduce health dispari14 ties. 

15 ‘‘(c) DUTIES OF THE NATIONAL COORDINATOR.— 

16 ‘‘(1) STANDARDS.—The National Coordinator 

17 shall— 

18 ‘‘(A) review and determine whether to en19 dorse each standard, implementation specifica20 tion, and certification criterion for the electronic 

21 exchange and use of health information that is 

22 recommended by the HIT Standards Committee 

23 under section 3003 for purposes of adoption 

24 under section 3004; 
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1 ‘‘(B) make such determinations under sub2 paragraph (A), and report to the Secretary such 

3 determinations, not later than 45 days after the 

4 date the recommendation is received by the Coor5 dinator; 

6 ‘‘(C) review Federal health information 

7 technology investments to ensure that Federal 

8 health information technology programs are 

9 meeting the objectives of the strategic plan pub10 lished under paragraph (3); and 

11 ‘‘(D) provide comments and advice regard12 ing specific Federal health information tech13 nology programs, at the request of the Office of 

14 Management and Budget. 

15 ‘‘(2) HIT POLICY COORDINATION.— 

16 ‘‘(A) IN GENERAL.—The National Coordi17 nator shall coordinate health information tech18 nology policy and programs of the Department 

19 with those of other relevant executive branch 

20 agencies with a goal of avoiding duplication of 

21 efforts and of helping to ensure that each agency 

22 undertakes health information technology activi23 ties primarily within the areas of its greatest ex24 pertise and technical capability and in a man25 ner towards a coordinated national goal. 
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1 ‘‘(B) HIT POLICY AND STANDARDS COMMIT2 TEES.—The National Coordinator shall be a 

3 leading member in the establishment and oper4 ations of the HIT Policy Committee and the 

5 HIT Standards Committee and shall serve as a 

6 liaison among those two Committees and the 

7 Federal Government. 

8 ‘‘(3) STRATEGIC PLAN.— 

9 ‘‘(A) IN GENERAL.—The National Coordi10 nator shall, in consultation with other appro11 priate Federal agencies (including the National 

12 Institute of Standards and Technology), update 

13 the Federal Health IT Strategic Plan (developed 

14 as of June 3, 2008) to include specific objectives, 

15 milestones, and metrics with respect to the fol16 lowing: 

17 ‘‘(i) The electronic exchange and use of 

18 health information and the enterprise inte19 gration of such information. 

20 ‘‘(ii) The utilization of an electronic 

21 health record for each person in the United 

22 States by 2014. 

23 ‘‘(iii) The incorporation of privacy 

24 and security protections for the electronic 
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1 exchange of an individual’s individually 

2 identifiable health information. 

3 ‘‘(iv) Ensuring security methods to en4 sure appropriate authorization and elec5 tronic authentication of health information 

6 and specifying technologies or methodologies 

7 for rendering health information unusable, 

8 unreadable, or indecipherable. 

9 ‘‘(v) Specifying a framework for co10 ordination and flow of recommendations 

11 and policies under this subtitle among the 

12 Secretary, the National Coordinator, the 

13 HIT Policy Committee, the HIT Standards 

14 Committee, and other health information 

15 exchanges and other relevant entities. 

16 ‘‘(vi) Methods to foster the public un17 derstanding of health information tech18 nology. 

19 ‘‘(vii) Strategies to enhance the use of 

20 health information technology in improving 

21 the quality of health care, reducing medical 

22 errors, reducing health disparities, improv23 ing public health, increasing prevention and 

24 coordination with community resources, 
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1 and improving the continuity of care 

2 among health care settings. 

3 ‘‘(viii) Specific plans for ensuring that 

4 populations with unique needs, such as chil5 dren, are appropriately addressed in the 

6 technology design, as appropriate, which 

7 may include technology that automates en8 rollment and retention for eligible individ9 uals. 

10 ‘‘(B) COLLABORATION.—The strategic plan 

11 shall be updated through collaboration of public 

12 and private entities. 

13 ‘‘(C) MEASURABLE OUTCOME GOALS.—The 

14 strategic plan update shall include measurable 

15 outcome goals. 

16 ‘‘(D) PUBLICATION.—The National Coordi17 nator shall republish the strategic plan, includ18 ing all updates. 

19 ‘‘(4) WEBSITE.—The National Coordinator shall 

20 maintain and frequently update an Internet website 

21 on which there is posted information on the work, 

22 schedules, reports, recommendations, and other infor23 mation to ensure transparency in promotion of a na24 tionwide health information technology infrastruc25 ture. 
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1 ‘‘(5) HARMONIZATION.—The Secretary may rec2 ognize an entity or entities for the purpose of harmo3 nizing or updating standards and implementation 

4 specifications in order to achieve uniform and con5 sistent implementation of the standards and imple6 mentation specifications. 

7 ‘‘(6) CERTIFICATION.— 

8 ‘‘(A) IN GENERAL.—The National Coordi9 nator, in consultation with the Director of the 

10 National Institute of Standards and Technology, 

11 shall recognize a program or programs for the 

12 voluntary certification of health information 

13 technology as being in compliance with applica14 ble certification criteria adopted under this sub15 title. Such program shall include, as appro16 priate, testing of the technology in accordance 

17 with section 14201(b) of the Health Information 

18 Technology for Economic and Clinical Health 

19 Act. 

20 ‘‘(B) CERTIFICATION CRITERIA DE21 SCRIBED.—In this title, the term ‘certification 

22 criteria’ means, with respect to standards and 

23 implementation specifications for health infor24 mation technology, criteria to establish that the 
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1 technology meets such standards and implemen2 tation specifications. 

3 ‘‘(6) REPORTS AND PUBLICATIONS.— 

4 ‘‘(A) REPORT ON ADDITIONAL FUNDING OR

5 AUTHORITY NEEDED.—Not later than 12 months 

6 after the date of the enactment of this title, the 

7 National Coordinator shall submit to the appro8 priate committees of jurisdiction of the House of 

9 Representatives and the Senate a report on any 

10 additional funding or authority the Coordinator 

11 or the HIT Policy Committee or HIT Standards 

12 Committee requires to evaluate and develop 

13 standards, implementation specifications, and 

14 certification criteria, or to achieve full participa15 tion of stakeholders in the adoption of a nation16 wide health information technology infrastruc17 ture that allows for the electronic use and ex18 change of health information. 

19 ‘‘(B) IMPLEMENTATION REPORT.—The Na20 tional Coordinator shall prepare a report that 

21 identifies lessons learned from major public and 

22 private health care systems in their implementa23 tion of health information technology, including 

24 information on whether the technologies and 

25 practices developed by such systems may be ap-
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1 plicable to and usable in whole or in part by 

2 other health care providers. 

3 ‘‘(C) ASSESSMENT OF IMPACT OF HIT ON

4 COMMUNITIES WITH HEALTH DISPARITIES AND

5 UNINSURED, UNDERINSURED, AND MEDICALLY

6 UNDERSERVED AREAS.—The National Coordi7 nator shall assess and publish the impact of 

8 health information technology in communities 

9 with health disparities and in areas with a high 

10 proportion of individuals who are uninsured, 

11 underinsured, and medically underserved indi12 viduals (including urban and rural areas) and 

13 identify practices to increase the adoption of 

14 such technology by health care providers in such 

15 communities, and the use of health information 

16 technology to reduce and better manage chronic 

17 diseases. 

18 ‘‘(D) EVALUATION OF BENEFITS AND COSTS

19 OF THE ELECTRONIC USE AND EXCHANGE OF

20 HEALTH INFORMATION.—The National Coordi21 nator shall evaluate and publish evidence on the 

22 benefits and costs of the electronic use and ex23 change of health information and assess to whom 

24 these benefits and costs accrue. 
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1 (E) RESOURCE REQUIREMENTS.—The Na2 tional Coordinator shall estimate and publish re3 sources required annually to reach the goal of 

4 utilization of an electronic health record for each 

5 person in the United States by 2014, includ6 ing— 

7 (i) the required level of Federal fund8 ing; 

9 (ii) expectations for regional, State, 

10 and private investment; 

11 (iii) the expected contributions by vol12 unteers to activities for the utilization of 

13 such records; and 

14 (iv) the resources needed to establish or 

15 expand education programs in medical and 

16 health informatics and health information 

17 management to train health care and infor18 mation technology students and provide a 

19 health information technology workforce suf20 ficient to ensure the rapid and effective de21 ployment and utilization of health informa22 tion technologies. 

23 ‘‘(7) ASSISTANCE.—The National Coordinator 

24 may provide financial assistance to consumer advo25 cacy groups and not-for-profit entities that work in 
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1 the public interest for purposes of defraying the cost 

2 to such groups and entities to participate under, 

3 whether in whole or in part, the National Technology 

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

5 ‘‘(8) GOVERNANCE FOR NATIONWIDE HEALTH IN6 FORMATION NETWORK.—The National Coordinator 

7 shall establish a governance mechanism for the na8 tionwide health information network. 

9 ‘‘(d) DETAIL OF FEDERAL EMPLOYEES.— 

10 ‘‘(1) IN GENERAL.—Upon the request of the Na11 tional Coordinator, the head of any Federal agency is 

12 authorized to detail, with or without reimbursement 

13 from the Office, any of the personnel of such agency 

14 to the Office to assist it in carrying out its duties 

15 under this section. 

16 ‘‘(2) EFFECT OF DETAIL.—Any detail of per17 sonnel under paragraph (1) shall— 

18 ‘‘(A) not interrupt or otherwise affect the 

19 civil service status or privileges of the Federal 

20 employee; and 

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

22 Department employed by the National Coordi23 nator. 

24 ‘‘(3) ACCEPTANCE OF DETAILEES.—Notwith25 standing any other provision of law, the Office may 
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1 accept detailed personnel from other Federal agencies 

2 without regard to whether the agency described under 

3 paragraph (1) is reimbursed. 

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

5 NATIONAL COORDINATOR.—Not later than 12 months after 

6 the date of the enactment of this title, the Secretary shall 

7 appoint a Chief Privacy Officer of the Office of the National 

8 Coordinator, whose duty it shall be to advise the National 

9 Coordinator on privacy, security, and data stewardship of 

10 electronic health information and to coordinate with other 

11 Federal agencies (and similar privacy officers in such agen12 cies), with State and regional efforts, and with foreign 

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

14 stewardship of electronic individually identifiable health 

15 information. 

16 ‘‘SEC. 3002. HIT POLICY COMMITTEE. 

17 ‘‘(a) ESTABLISHMENT.—There is established a HIT 

18 Policy Committee to make policy recommendations to the 

19 National Coordinator relating to the implementation of a 

20 nationwide health information technology infrastructure, 

21 including implementation of the strategic plan described in 

22 section 3001(c)(3). 

23 ‘‘(b) DUTIES.— 

24 ‘‘(1) RECOMMENDATIONS ON HEALTH INFORMA25 TION TECHNOLOGY INFRASTRUCTURE.—The HIT Pol-
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1 icy Committee shall recommend a policy framework 

2 for the development and adoption of a nationwide 

3 health information technology infrastructure that per4 mits the electronic exchange and use of health infor5 mation as is consistent with the strategic plan under 

6 section 3001(c)(3) and that includes the recommenda7 tions under paragraph (2). The Committee shall up8 date such recommendations and make new rec9 ommendations as appropriate. 

10 ‘‘(2) SPECIFIC AREAS OF STANDARD DEVELOP11 MENT.— 

12 ‘‘(A) IN GENERAL.—The HIT Policy Com13 mittee shall recommend the areas in which 

14 standards, implementation specifications, and 

15 certification criteria are needed for the electronic 

16 exchange and use of health information for pur17 poses of adoption under section 3004 and shall 

18 recommend an order of priority for the develop19 ment, harmonization, and recognition of such 

20 standards, specifications, and certification cri21 teria among the areas so recommended. Such 

22 standards and implementation specifications 

23 shall include named standards, architectures, 

24 and software schemes for the authentication and 

25 security of individually identifiable health infor-
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1 mation and other information as needed to en2 sure the reproducible development of common so3 lutions across disparate entities. 

4 ‘‘(B) AREAS REQUIRED FOR CONSIDER5 ATION.—For purposes of subparagraph (A), the 

6 HIT Policy Committee shall make recommenda7 tions for at least the following areas: 

8 ‘‘(i) Technologies that protect the pri9 vacy of health information and promote se10 curity in a qualified electronic health 

11 record, including for the segmentation and 

12 protection from disclosure of specific and 

13 sensitive individually identifiable health in14 formation with the goal of minimizing the 

15 reluctance of patients to seek care (or dis16 close information about a condition) be17 cause of privacy concerns, in accordance 

18 with applicable law, and for the use and 

19 disclosure of limited data sets of such infor20 mation. 

21 ‘‘(ii) A nationwide health information 

22 technology infrastructure that allows for the 

23 electronic use and accurate exchange of 

24 health information. 
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1 ‘‘(iii) The utilization of a certified elec2 tronic health record for each person in the 

3 United States by 2014. 

4 ‘‘(iv) Technologies that as a part of a 

5 qualified electronic health record allow for 

6 an accounting of disclosures made by a cov7 ered entity (as defined for purposes of regu8 lations promulgated under section 264(c) of 

9 the Health Insurance Portability and Ac10 countability Act of 1996) for purposes of 

11 treatment, payment, and health care oper12 ations (as such terms are defined for pur13 poses of such regulations). 

14 ‘‘(v) The use of certified electronic 

15 health records to improve the quality of 

16 health care, such as by promoting the co17 ordination of health care and improving 

18 continuity of health care among health care 

19 providers, by reducing medical errors, by 

20 improving population health, reducing 

21 chronic disease, and by advancing research 

22 and education. 

23 ‘‘(vi) The use of electronic systems to 

24 ensure the comprehensive collection of pa25 tient demographic data, including, at a 
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1 minimum, race, ethnicity, primary lan2 guage, and gender information. 

3 ‘‘(vii) Technologies and design features 

4 that address the needs of children and other 

5 vulnerable populations. 

6 ‘‘(C) OTHER AREAS FOR CONSIDERATION.— 

7 In making recommendations under subpara8 graph (A), the HIT Policy Committee may con9 sider the following additional areas: 

10 ‘‘(i) The appropriate uses of a nation11 wide health information infrastructure, in12 cluding for purposes of— 

13 ‘‘(I) the collection of quality data 

14 and public reporting; 

15 ‘‘(II) biosurveillance and public 

16 health; 

17 ‘‘(III) medical and clinical re18 search; and 

19 ‘‘(IV) drug safety. 

20 ‘‘(ii) Self-service technologies that fa21 cilitate the use and exchange of patient in22 formation and reduce wait times. 

23 ‘‘(iii) Telemedicine technologies, in 

24 order to reduce travel requirements for pa25 tients in remote areas. 
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1 ‘‘(iv) Technologies that facilitate home 

2 health care and the monitoring of patients 

3 recuperating at home. 

4 ‘‘(v) Technologies that help reduce med5 ical errors. 

6 ‘‘(vi) Technologies that facilitate the 

7 continuity of care among health settings. 

8 ‘‘(vii) Technologies that meet the needs 

9 of diverse populations. 

10 ‘‘(viii) Methods to facilitate secure ac11 cess by an individual to such individual’s 

12 protected health information. 

13 ‘‘(ix) Methods, guidelines, and safe14 guards to facilitate secure access to patient 

15 information by a family member, caregiver, 

16 or guardian acting on behalf of a patient 

17 due to age-related and other disability, cog18 nitive impairment, or dementia that pre19 vents a patient from accessing the patient’s 

20 individually identifiable health informa21 tion. 

22 ‘‘(x) Any other technology that the HIT 

23 Policy Committee finds to be among the 

24 technologies with the greatest potential to 
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1 improve the quality and efficiency of health 

2 care. 

3 ‘‘(3) FORUM.—The HIT Policy Committee shall 

4 serve as a forum for broad stakeholder input with spe5 cific expertise in policies relating to the matters de6 scribed in paragraphs (1) and (2). 

7 ‘‘(4) CONSISTENCY WITH EVALUATION CON8 DUCTED UNDER MIPPA.— 

9 ‘‘(A) REQUIREMENT FOR CONSISTENCY.— 

10 The HIT Policy Committee shall ensure that rec11 ommendations made under paragraph (2)(B)(vi) 

12 are consistent with the evaluation conducted 

13 under section 1809(a) of the Social Security Act. 

14 ‘‘(B) SCOPE.—Nothing in subparagraph (A) 

15 shall be construed to limit the recommendations 

16 under paragraph (2)(B)(vi) to the elements de17 scribed in section 1809(a)(3) of the Social Secu18 rity Act. 

19 ‘‘(C) TIMING.—The requirement under sub20 paragraph (A) shall be applicable to the extent 

21 that evaluations have been conducted under sec22 tion 1809(a) of the Social Security Act, regard23 less of whether the report described in subsection 

24 (b) of such section has been submitted. 

25 ‘‘(c) MEMBERSHIP AND OPERATIONS.— 
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1 ‘‘(1) IN GENERAL.—The National Coordinator 

2 shall provide leadership in the establishment and op3 erations of the HIT Policy Committee. 

4 ‘‘(2) MEMBERSHIP.—The HIT Policy Committee 

5 shall be composed of members to be appointed as fol6 lows: 

7 ‘‘(A) One member shall be appointed by the 

8 Secretary. 

9 ‘‘(B) One member shall be appointed by the 

10 Secretary of Veterans Affairs who shall represent 

11 the Department of Veterans Affairs. 

12 ‘‘(C) One member shall be appointed by the 

13 Secretary of Defense who shall represent the De14 partment of Defense. 

15 ‘‘(D) One member shall be appointed by the 

16 Majority Leader of the Senate. 

17 ‘‘(E) One member shall be appointed by the 

18 Minority Leader of the Senate. 

19 ‘‘(F) One member shall be appointed by the 

20 Speaker of the House of Representatives. 

21 ‘‘(G) One member shall be appointed by the 

22 Minority Leader of the House of Representatives. 

23 ‘‘(H) Eleven members shall be appointed by 

24 the Comptroller General of the United States, of 

25 whom— 
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1 ‘‘(i) three members shall represent pa2 tients or consumers; 

3 ‘‘(ii) one member shall represent health 

4 care providers; 

5 ‘‘(iii) one member shall be from a labor 

6 organization representing health care work7 ers; 

8 ‘‘(iv) one member shall have expertise 

9 in privacy and security; 

10 ‘‘(v) one member shall have expertise 

11 in improving the health of vulnerable popu12 lations; 

13 ‘‘(vi) one member shall represent health 

14 plans or other third party payers; 

15 ‘‘(vii) one member shall represent in16 formation technology vendors; 

17 ‘‘(viii) one member shall represent pur18 chasers or employers; and 

19 ‘‘(ix) one member shall have expertise 

20 in health care quality measurement and re21 porting. 

22 ‘‘(3) CHAIRPERSON AND VICE CHAIRPERSON.— 

23 The HIT Policy Committee shall designate one mem24 ber to serve as the chairperson and one member to 

25 serve as the vice chairperson of the Policy Committee. 
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1 ‘‘(4) NATIONAL COORDINATOR.—The National 

2 Coordinator shall serve as a member of the HIT Pol3 icy Committee and act as a liaison among the HIT 

4 Policy Committee, the HIT Standards Committee, 

5 and the Federal Government. 

6 ‘‘(5) PARTICIPATION.—The members of the HIT 

7 Policy Committee appointed under paragraph (2) 

8 shall represent a balance among various sectors of the 

9 health care system so that no single sector unduly in10 fluences the recommendations of the Policy Com11 mittee. 

12 ‘‘(6) TERMS.— 

13 ‘‘(A) IN GENERAL.—The terms of the mem14 bers of the HIT Policy Committee shall be for 3 

15 years, except that the Comptroller General shall 

16 designate staggered terms for the members first 

17 appointed. 

18 ‘‘(B) VACANCIES.—Any member appointed 

19 to fill a vacancy in the membership of the HIT 

20 Policy Committee that occurs prior to the expi21 ration of the term for which the member’s prede22 cessor was appointed shall be appointed only for 

23 the remainder of that term. A member may serve 

24 after the expiration of that member’s term until 

25 a successor has been appointed. A vacancy in the 
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1 HIT Policy Committee shall be filled in the 

2 manner in which the original appointment was 

3 made. 

4 ‘‘(7) OUTSIDE INVOLVEMENT.—The HIT Policy 

5 Committee shall ensure an adequate opportunity for 

6 the participation of outside advisors, including indi7 viduals with expertise in— 

8 ‘‘(A) health information privacy and secu9 rity; 

10 ‘‘(B) improving the health of vulnerable 

11 populations; 

12 ‘‘(C) health care quality and patient safety, 

13 including individuals with expertise in the meas14 urement and use of health information tech15 nology to capture data to improve health care 

16 quality and patient safety; 

17 ‘‘(D) long-term care and aging services; 

18 ‘‘(E) medical and clinical research; and 

19 ‘‘(F) data exchange and developing health 

20 information technology standards and new 

21 health information technology. 

22 ‘‘(8) QUORUM.—Ten members of the HIT Policy 

23 Committee shall constitute a quorum for purposes of 

24 voting, but a lesser number of members may meet and 

25 hold hearings. 
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1 ‘‘(9) FAILURE OF INITIAL APPOINTMENT.—If, on 

2 the date that is 45 days after the date of enactment 

3 of this title, an official authorized under paragraph 

4 (2) to appoint one or more members of the HIT Pol5 icy Committee has not appointed the full number of 

6 members that such paragraph authorizes such official 

7 to appoint— 

8 ‘‘(A) the number of members that such offi9 cial is authorized to appoint shall be reduced to 

10 the number that such official has appointed as of 

11 that date; and 

12 ‘‘(B) the number prescribed in paragraph 

13 (8) as the quorum shall be reduced to the small14 est whole number that is greater than one-half of 

15 the total number of members who have been ap16 pointed as of that date. 

17 ‘‘(10) CONSIDERATION.—The National Coordi18 nator shall ensure that the relevant recommendations 

19 and comments from the National Committee on Vital 

20 and Health Statistics are considered in the develop21 ment of policies. 

22 ‘‘(d) APPLICATION OF FACA.—The Federal Advisory 

23 Committee Act (5 U.S.C. App.), other than section 14 of 

24 such Act, shall apply to the HIT Policy Committee. 
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1 ‘‘(e) PUBLICATION.—The Secretary shall provide for 

2 publication in the Federal Register and the posting on the 

3 Internet website of the Office of the National Coordinator 

4 for Health Information Technology of all policy rec5 ommendations made by the HIT Policy Committee under 

6 this section. 

7 ‘‘SEC. 3003. HIT STANDARDS COMMITTEE. 

8 ‘‘(a) ESTABLISHMENT.—There is established a com9 mittee to be known as the HIT Standards Committee to 

10 recommend to the National Coordinator standards, imple11 mentation specifications, and certification criteria for the 

12 electronic exchange and use of health information for pur13 poses of adoption under section 3004, consistent with the 

14 implementation of the strategic plan described in section 

15 3001(c)(3) and beginning with the areas listed in section 

16 3002(b)(2)(B) in accordance with policies developed by the 

17 HIT Policy Committee. 

18 ‘‘(b) DUTIES.— 

19 ‘‘(1) STANDARD DEVELOPMENT.— 

20 ‘‘(A) IN GENERAL.—The HIT Standards 

21 Committee shall recommend to the National Co22 ordinator standards, implementation specifica23 tions, and certification criteria described in sub24 section (a) that have been developed, harmonized, 

25 or recognized by the HIT Standards Committee. 
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1 The HIT Standards Committee shall update 

2 such recommendations and make new rec3 ommendations as appropriate, including in re4 sponse to a notification sent under section 

5 3004(b)(2). Such recommendations shall be con6 sistent with the latest recommendations made by 

7 the HIT Policy Committee. 

8 ‘‘(B) PILOT TESTING OF STANDARDS AND

9 IMPLEMENTATION SPECIFICATIONS.—In the de10 velopment, harmonization, or recognition of 

11 standards and implementation specifications, the 

12 HIT Standards Committee shall, as appropriate, 

13 provide for the testing of such standards and 

14 specifications by the National Institute for 

15 Standards and Technology under section 14201 

16 of the Health Information Technology for Eco17 nomic and Clinical Health Act. 

18 ‘‘(C) CONSISTENCY.—The standards, imple19 mentation specifications, and certification cri20 teria recommended under this subsection shall be 

21 consistent with the standards for information 

22 transactions and data elements adopted pursu23 ant to section 1173 of the Social Security Act. 

24 ‘‘(2) FORUM.—The HIT Standards Committee 

25 shall serve as a forum for the participation of a broad 
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1 range of stakeholders to provide input on the develop2 ment, harmonization, and recognition of standards, 

3 implementation specifications, and certification cri4 teria necessary for the development and adoption of 

5 a nationwide health information technology infra6 structure that allows for the electronic use and ex7 change of health information. 

8 ‘‘(3) SCHEDULE.—Not later than 90 days after 

9 the date of the enactment of this title, the HIT Stand10 ards Committee shall develop a schedule for the assess11 ment of policy recommendations developed by the 

12 HIT Policy Committee under section 3002. The HIT 

13 Standards Committee shall update such schedule an14 nually. The Secretary shall publish such schedule in 

15 the Federal Register. 

16 ‘‘(4) PUBLIC INPUT.—The HIT Standards Com17 mittee shall conduct open public meetings and develop 

18 a process to allow for public comment on the schedule 

19 described in paragraph (3) and recommendations de20 scribed in this subsection. Under such process com21 ments shall be submitted in a timely manner after the 

22 date of publication of a recommendation under this 

23 subsection. 

24 ‘‘(5) CONSIDERATION.—The National Coordi25 nator shall ensure that the relevant recommendations 
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1 and comments from the National Committee on Vital 

2 and Health Statistics are considered in the develop3 ment of standards. 

4 ‘‘(c) MEMBERSHIP AND OPERATIONS.— 

5 ‘‘(1) IN GENERAL.—The National Coordinator 

6 shall provide leadership in the establishment and op7 erations of the HIT Standards Committee. 

8 ‘‘(2) MEMBERSHIP.—The membership of the HIT 

9 Standards Committee shall at least reflect providers, 

10 ancillary healthcare workers, consumers, purchasers, 

11 health plans, technology vendors, researchers, relevant 

12 Federal agencies, and individuals with technical ex13 pertise on health care quality, privacy and security, 

14 and on the electronic exchange and use of health in15 formation. 

16 ‘‘(3) BROAD PARTICIPATION.—There is broad 

17 participation in the HIT Standards Committee by a 

18 variety of public and private stakeholders, either 

19 through membership in the Committee or through an20 other means. 

21 ‘‘(4) CHAIRPERSON; VICE CHAIRPERSON.—The 

22 HIT Standards Committee may designate one mem23 ber to serve as the chairperson and one member to 

24 serve as the vice chairperson. 
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1 ‘‘(5) DEPARTMENT MEMBERSHIP.—The Sec2 retary shall be a member of the HIT Standards Com3 mittee. The National Coordinator shall act as a liai4 son among the HIT Standards Committee, the HIT 

5 Policy Committee, and the Federal Government. 

6 ‘‘(6) BALANCE AMONG SECTORS.—In developing 

7 the procedures for conducting the activities of the HIT 

8 Standards Committee, the HIT Standards Committee 

9 shall act to ensure a balance among various sectors of 

10 the health care system so that no single sector unduly 

11 influences the actions of the HIT Standards Com12 mittee. 

13 ‘‘(7) ASSISTANCE.—For the purposes of carrying 

14 out this section, the Secretary may provide or ensure 

15 that financial assistance is provided by the HIT 

16 Standards Committee to defray in whole or in part 

17 any membership fees or dues charged by such Com18 mittee to those consumer advocacy groups and not for 

19 profit entities that work in the public interest as a 

20 part of their mission. 

21 ‘‘(d) OPEN AND PUBLIC PROCESS.—In providing for 

22 the establishment of the HIT Standards Committee pursu23 ant to subsection (a), the Secretary shall ensure the fol24 lowing: 
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1 ‘‘(1) CONSENSUS APPROACH; OPEN PROCESS.— 

2 The HIT Standards Committee shall use a consensus 

3 approach and a fair and open process to support the 

4 development, harmonization, and recognition of 

5 standards described in subsection (a)(1). 

6 ‘‘(2) PARTICIPATION OF OUTSIDE ADVISERS.— 

7 The HIT Standards Committee shall ensure an ade8 quate opportunity for the participation of outside ad9 visors, including individuals with expertise in— 

10 ‘‘(A) health information privacy; 

11 ‘‘(B) health information security; 

12 ‘‘(C) health care quality and patient safety, 

13 including individuals with expertise in utilizing 

14 health information technology to improve 

15 healthcare quality and patient safety; 

16 ‘‘(D) long-term care and aging services; and 

17 ‘‘(E) data exchange and developing health 

18 information technology standards and new 

19 health information technology. 

20 ‘‘(3) OPEN MEETINGS.—Plenary and other regu21 larly scheduled formal meetings of the HIT Standards 

22 Committee (or established subgroups thereof) shall be 

23 open to the public. 

24 ‘‘(4) PUBLICATION OF MEETING NOTICES AND

25 MATERIALS PRIOR TO MEETINGS.—The HIT Stand-
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1 ards Committee shall develop and maintain an Inter2 net website on which it publishes, prior to each meet3 ing, a meeting notice, a meeting agenda, and meeting 

4 materials. 

5 ‘‘(5) OPPORTUNITY FOR PUBLIC COMMENT.—The 

6 HIT Standards Committee shall develop a process 

7 that allows for public comment during the process by 

8 which the Entity develops, harmonizes, or recognizes 

9 standards and implementation specifications. 

10 ‘‘(e) VOLUNTARY CONSENSUS STANDARD BODY.—The 

11 provisions of section 12(d) of the National Technology 

12 Transfer and Advancement Act of 1995 (15 U.S.C. 272 

13 note) and the Office of Management and Budget circular 

14 119 shall apply to the HIT Standards Committee. 

15 ‘‘(f) PUBLICATION.—The Secretary shall provide for 

16 publication in the Federal Register and the posting on the 

17 Internet website of the Office of the National Coordinator 

18 for Health Information Technology of all recommendations 

19 made by the HIT Standards Committee under this section. 

20 ‘‘SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED REC21 OMMENDATIONS; ADOPTION OF INITIAL SET 

22 OF STANDARDS, IMPLEMENTATION SPECI23 FICATIONS, AND CERTIFICATION CRITERIA. 

24 ‘‘(a) PROCESS FOR ADOPTION OF ENDORSED REC25 OMMENDATIONS.— 
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1 ‘‘(1) REVIEW OF ENDORSED STANDARDS, IMPLE2 MENTATION SPECIFICATIONS, AND CERTIFICATION CRI3 TERIA.—Not later than 90 days after the date of re4 ceipt of standards, implementation specifications, or 

5 certification criteria endorsed under section 3001(c), 

6 the Secretary, in consultation with representatives of 

7 other relevant Federal agencies, shall jointly review 

8 such standards, implementation specifications, or cer9 tification criteria and shall determine whether or not 

10 to propose adoption of such standards, implementa11 tion specifications, or certification criteria. 

12 ‘‘(2) DETERMINATION TO ADOPT STANDARDS, IM13 PLEMENTATION SPECIFICATIONS, AND CERTIFICATION

14 CRITERIA.—If the Secretary determines— 

15 ‘‘(A) to propose adoption of any grouping of 

16 such standards, implementation specifications, 

17 or certification criteria, the Secretary shall, by 

18 regulation, determine whether or not to adopt 

19 such grouping of standards, implementation 

20 specifications, or certification criteria; or 

21 ‘‘(B) not to propose adoption of any group22 ing of standards, implementation specifications, 

23 or certification criteria, the Secretary shall no24 tify the National Coordinator and the HIT 

25 Standards Committee in writing of such deter-
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1 mination and the reasons for not proposing the 

2 adoption of such recommendation. 

3 ‘‘(3) PUBLICATION.—The Secretary shall provide 

4 for publication in the Federal Register of all deter5 minations made by the Secretary under paragraph 

6 (1). 

7 ‘‘(b) ADOPTION OF STANDARDS, IMPLEMENTATION

8 SPECIFICATIONS, AND CERTIFICATION CRITERIA.— 

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

10 2009, the Secretary shall, through the rulemaking 

11 process described in section 3003, adopt an initial set 

12 of standards, implementation specifications, and cer13 tification criteria for the areas required for consider14 ation under section 3002(b)(2)(B). 

15 ‘‘(2) APPLICATION OF CURRENT STANDARDS, IM16 PLEMENTATION SPECIFICATIONS, AND CERTIFICATION

17 CRITERIA.—The standards, implementation specifica18 tions, and certification criteria adopted before the 

19 date of the enactment of this title through the process 

20 existing through the Office of the National Coordi21 nator for Health Information Technology may be ap22 plied towards meeting the requirement of paragraph 

23 (1). 

24 ‘‘(3) SUBSEQUENT STANDARDS ACTIVITY.—The 

25 Secretary shall adopt additional standards, imple-
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1 mentation specifications, and certification criteria as 

2 necessary and consistent with the schedule published 

3 under section 3003(b)(2). 

4 ‘‘SEC. 3005. APPLICATION AND USE OF ADOPTED STAND5 ARDS AND IMPLEMENTATION SPECIFICA6 TIONS BY FEDERAL AGENCIES. 

7 ‘‘For requirements relating to the application and use 

8 by Federal agencies of the standards and implementation 

9 specifications adopted under section 3004, see section 13111 

10 of the Health Information Technology for Economic and 

11 Clinical Health Act. 

12 ‘‘SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPT13 ED STANDARDS AND IMPLEMENTATION SPEC14 IFICATIONS BY PRIVATE ENTITIES. 

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

16 13112 of the Health Information Technology for Economic 

17 and Clinical Health Act, any standard or implementation 

18 specification adopted under section 3004 shall be voluntary 

19 with respect to private entities. 

20 ‘‘(b) RULE OF CONSTRUCTION.—Nothing in this sub21 title shall be construed to require that a private entity that 

22 enters into a contract with the Federal Government apply 

23 or use the standards and implementation specifications 

24 adopted under section 3004 with respect to activities not 

25 related to the contract. 
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1 ‘‘SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY. 

2 ‘‘(a) IN GENERAL.—The National Coordinator shall 

3 support the development and routine updating of qualified 

4 electronic health record technology (as defined in section 

5 3000) consistent with subsections (b) and (c) and make 

6 available such qualified electronic health record technology 

7 unless the Secretary and the HIT Policy Committee deter8 mine through an assessment that the needs and demands 

9 of providers are being substantially and adequately met 

10 through the marketplace. 

11 ‘‘(b) CERTIFICATION.—In making such EHR tech12 nology publicly available, the National Coordinator shall 

13 ensure that the qualified EHR technology described in sub14 section (a) is certified under the program developed under 

15 section 3001(c)(3) to be in compliance with applicable 

16 standards adopted under section 3003(a). 

17 ‘‘(c) AUTHORIZATION TO CHARGE A NOMINAL FEE.— 

18 The National Coordinator may impose a nominal fee for 

19 the adoption by a health care provider of the health infor20 mation technology system developed or approved under sub21 section (a) and (b). Such fee shall take into account the 

22 financial circumstances of smaller providers, low income 

23 providers, and providers located in rural or other medically 

24 underserved areas. 

25 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec26 tion shall be construed to require that a private or govern-
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1 ment entity adopt or use the technology provided under this 

2 section. 

3 SEC. 3008. TRANSITIONS. 

4 ‘‘(a) ONCHIT.—Nothing in section 3001 shall be con5 strued as requiring the creation of a new entity to the extent 

6 that the Office of the National Coordinator for Health Infor7 mation Technology established pursuant to Executive Order 

8 13335 is consistent with the provisions of section 3001. 

9 ‘‘(b) NATIONAL EHEALTH COLLABORATIVE.—Nothing 

10 in sections 3002 or 3003 or this subsection shall be con11 strued as prohibiting the National eHealth Collaborative 

12 from modifying its charter, duties, membership, and any 

13 other structure or function required to be consistent with 

14 the requirements of a voluntary consensus standards body 

15 so as to allow the Secretary to recognize the National 

16 eHealth Collaborative as the HIT Standards Committee. 

17 ‘‘(c) CONSISTENCY OF RECOMMENDATIONS.—In car18 rying out section 3003(b)(1)(A), until recommendations are 

19 made by the HIT Policy Committee, recommendations of 

20 the HIT Standards Committee shall be consistent with the 

21 most recent recommendations made by such AHIC Suc22 cessor, Inc. 
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1 ‘‘SEC. 3009. RELATION TO HIPAA PRIVACY AND SECURITY 

2 LAW. 

3 ‘‘(a) IN GENERAL.—With respect to the relation of this 

4 title to HIPAA privacy and security law: 

5 ‘‘(1) This title may not be construed as having 

6 any effect on the authorities of the Secretary under 

7 HIPAA privacy and security law. 

8 ‘‘(2) The purposes of this title include ensuring 

9 that the health information technology standards and 

10 implementation specifications adopted under section 

11 3004 take into account the requirements of HIPAA 

12 privacy and security law. 

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

14 term ‘HIPAA privacy and security law’ means— 

15 ‘‘(1) the provisions of part C of title XI of the 

16 Social Security Act, section 264 of the Health Insur17 ance Portability and Accountability Act of 1996, and 

18 subtitle D of the Health Information Technology for 

19 Economic and Clinical Health Act; and 

20 ‘‘(2) regulations under such provisions.’’. 

21 SEC. 13102. TECHNICAL AMENDMENT. 

22 Section 1171(5) of the Social Security Act (42 U.S.C. 

23 1320d) is amended by striking ‘‘or C’’ and inserting ‘‘C, 

24 or D’’. 
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1 PART II—APPLICATION AND USE OF ADOPTED 

2 HEALTH INFORMATION TECHNOLOGY 

3 STANDARDS; REPORTS 

4 SEC. 13111. COORDINATION OF FEDERAL ACTIVITIES WITH 

5 ADOPTED STANDARDS AND IMPLEMENTA6 TION SPECIFICATIONS. 

7 (a) SPENDING ON HEALTH INFORMATION TECH8 NOLOGY SYSTEMS.—As each agency (as defined in the Exec9 utive Order issued on August 22, 2006, relating to pro10 moting quality and efficient health care in Federal govern11 ment administered or sponsored health care programs) im12 plements, acquires, or upgrades health information tech13 nology systems used for the direct exchange of individually 

14 identifiable health information between agencies and with 

15 non-Federal entities, it shall utilize, where available, health 

16 information technology systems and products that meet 

17 standards and implementation specifications adopted under 

18 section 3004(b) of the Public Health Service Act, as added 

19 by section 13101. 

20 (b) FEDERAL INFORMATION COLLECTION ACTIVI21 TIES.—With respect to a standard or implementation speci22 fication adopted under section 3004(b) of the Public Health 

23 Service Act, as added by section 13101, the President shall 

24 take measures to ensure that Federal activities involving 

25 the broad collection and submission of health information 

26 are consistent with such standard or implementation speci-
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1 fication, respectively, within three years after the date of 

2 such adoption. 

3 (c) APPLICATION OF DEFINITIONS.—The definitions 

4 contained in section 3000 of the Public Health Service Act, 

5 as added by section 13101, shall apply for purposes of this 

6 part. 

7 SEC. 13112. APPLICATION TO PRIVATE ENTITIES. 

8 Each agency (as defined in such Executive Order 

9 issued on August 22, 2006, relating to promoting quality 

10 and efficient health care in Federal government adminis11 tered or sponsored health care programs) shall require in 

12 contracts or agreements with health care providers, health 

13 plans, or health insurance issuers that as each provider, 

14 plan, or issuer implements, acquires, or upgrades health in15 formation technology systems, it shall utilize, where avail16 able, health information technology systems and products 

17 that meet standards and implementation specifications 

18 adopted under section 3004(b) of the Public Health Service 

19 Act, as added by section 13101. 

20 SEC. 13113. STUDY AND REPORTS. 

21 (a) REPORT ON ADOPTION OF NATIONWIDE SYSTEM.— 

22 Not later than 2 years after the date of the enactment of 

23 this Act and annually thereafter, the Secretary of Health 

24 and Human Services shall submit to the appropriate com-
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1 mittees of jurisdiction of the House of Representatives and 

2 the Senate a report that— 

3 (1) describes the specific actions that have been 

4 taken by the Federal Government and private entities 

5 to facilitate the adoption of a nationwide system for 

6 the electronic use and exchange of health information; 

7 (2) describes barriers to the adoption of such a 

8 nationwide system; and 

9 (3) contains recommendations to achieve full im10 plementation of such a nationwide system. 

11 (b) REIMBURSEMENT INCENTIVE STUDY AND RE12 PORT.— 

13 (1) STUDY.—The Secretary of Health and 

14 Human Services shall carry out, or contract with a 

15 private entity to carry out, a study that examines 

16 methods to create efficient reimbursement incentives 

17 for improving health care quality in Federally quali18 fied health centers, rural health clinics, and free clin19 ics. 

20 (2) REPORT.—Not later than 2 years after the 

21 date of the enactment of this Act, the Secretary of 

22 Health and Human Services shall submit to the ap23 propriate committees of jurisdiction of the House of 

24 Representatives and the Senate a report on the study 

25 carried out under paragraph (1). 
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1 (c) AGING SERVICES TECHNOLOGY STUDY AND RE2 PORT.— 

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

4 Human Services shall carry out, or contract with a 

5 private entity to carry out, a study of matters relat6 ing to the potential use of new aging services tech7 nology to assist seniors, individuals with disabilities, 

8 and their caregivers throughout the aging process. 

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

10 paragraph (1) shall include— 

11 (A) an evaluation of— 

12 (i) methods for identifying current, 

13 emerging, and future health technology that 

14 can be used to meet the needs of seniors and 

15 individuals with disabilities and their care16 givers across all aging services settings, as 

17 specified by the Secretary; 

18 (ii) methods for fostering scientific in19 novation with respect to aging services tech20 nology within the business and academic 

21 communities; and 

22 (iii) developments in aging services 

23 technology in other countries that may be 

24 applied in the United States; and 

25 (B) identification of— 
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1 (i) barriers to innovation in aging 

2 services technology and devising strategies 

3 for removing such barriers; and 

4 (ii) barriers to the adoption of aging 

5 services technology by health care providers 

6 and consumers and devising strategies to re7 moving such barriers. 

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

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

10 submit to the appropriate committees of jurisdiction 

11 of the House of Representatives and of the Senate a 

12 report on the study carried out under paragraph (1). 

13 (4) DEFINITIONS.—For purposes of this sub14 section: 

15 (A) AGING SERVICES TECHNOLOGY.—The 

16 term ‘‘aging services technology’’ means health 

17 technology that meets the health care needs of 

18 seniors, individuals with disabilities, and the 

19 caregivers of such seniors and individuals. 

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

21 meaning as specified by the Secretary. 

22 GENERAL PROVISIONS—HOPE FOR HOMEOWNERS

23 AMENDMENTS

24 SEC. 1211. Section 257 of the National Housing Act 

25 (12 U.S.C. 1715z–23), as amended by the Emergency Eco-
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1 nomic Stabilization Act of 2008 (Public Law 110–343), is 

2 amended— 

3 (1) in subsection (e)(1)(B), by inserting after 

4 ‘‘being reset,’’ the following: ‘‘or has, due to a decrease 

5 in income,’’; 

6 (2) in subsection (k)(2), by striking ‘‘and the 

7 mortgagor’’ and all that follows through the end and 

8 inserting ‘‘shall, upon any sale or disposition of the 

9 property to which the mortgage relates, be entitled to 

10 25 percent of appreciation, up to the appraised value 

11 of the home at the time when the mortgage being refi12 nanced under this section was originally made. The 

13 Secretary may share any amounts received under this 

14 paragraph with the holder of the eligible mortgage re15 financed under this section.’’; 

16 (3) in subsection (i)— 

17 (A) by inserting ‘‘, after weighing maxi18 mization of participation with consideration for 

19 the solvency of the program,’’ after ‘‘Secretary 

20 shall’’; 

21 (B) in paragraph (1), by striking ‘‘equal to 

22 3 percent’’ and inserting ‘‘not more than 2 per23 cent’’; and 
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1 (C) in paragraph (2), by striking ‘‘equal to 

2 1.5 percent’’ and inserting ‘‘not more than 1 per3 cent’’; and 

4 (4) by adding at the end the following: 

5 ‘‘(x) AUCTIONS.—The Board shall, if feasible, establish 

6 a structure and organize procedures for an auction to refi7 nance eligible mortgages on a wholesale or bulk basis. 

8 ‘‘(y) COMPENSATION OF SERVICERS.—To provide in9 centive for participation in the program under this section, 

10 each servicer of an eligible mortgage insured under this sec11 tion shall be paid $1,000 for performing services associated 

12 with refinancing such mortgage, or such other amount as 

13 the Board determines is warranted. Funding for such com14 pensation shall be provided by funds realized through the 

15 HOPE bond under subsection (w).’’. 

16 Subtitle B—Testing of Health 

17 Information Technology 

18 SEC. 13201. NATIONAL INSTITUTE FOR STANDARDS AND 

19 TECHNOLOGY TESTING. 

20 (a) PILOT TESTING OF STANDARDS AND IMPLEMENTA21 TION SPECIFICATIONS.—In coordination with the HIT 

22 Standards Committee established under section 3003 of the 

23 Public Health Service Act, as added by section 13101, with 

24 respect to the development of standards and implementation 

25 specifications under such section, the Director of the Na-
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1 tional Institute for Standards and Technology shall test 

2 such standards and implementation specifications, as ap3 propriate, in order to assure the efficient implementation 

4 and use of such standards and implementation specifica5 tions. 

6 (b) VOLUNTARY TESTING PROGRAM.—In coordination 

7 with the HIT Standards Committee established under sec8 tion 3003 of the Public Health Service Act, as added by 

9 section 13101, with respect to the development of standards 

10 and implementation specifications under such section, the 

11 Director of the National Institute of Standards and Tech12 nology shall support the establishment of a conformance 

13 testing infrastructure, including the development of tech14 nical test beds. The development of this conformance testing 

15 infrastructure may include a program to accredit inde16 pendent, non-Federal laboratories to perform testing. 

17 SEC. 13202. RESEARCH AND DEVELOPMENT PROGRAMS. 

18 (a) HEALTH CARE INFORMATION ENTERPRISE INTE19 GRATION RESEARCH CENTERS.— 

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

21 Institute of Standards and Technology, in consulta22 tion with the Director of the National Science Foun23 dation and other appropriate Federal agencies, shall 

24 establish a program of assistance to institutions of 

25 higher education (or consortia thereof which may in-
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1 clude nonprofit entities and Federal Government lab2 oratories) to establish multidisciplinary Centers for 

3 Health Care Information Enterprise Integration. 

4 (2) REVIEW; COMPETITION.—Grants shall be 

5 awarded under this subsection on a merit-reviewed, 

6 competitive basis. 

7 (3) PURPOSE.—The purposes of the Centers de8 scribed in paragraph (1) shall be— 

9 (A) to generate innovative approaches to 

10 health care information enterprise integration by 

11 conducting cutting-edge, multidisciplinary re12 search on the systems challenges to health care 

13 delivery; and 

14 (B) the development and use of health infor15 mation technologies and other complementary 

16 fields. 

17 (4) RESEARCH AREAS.—Research areas may in18 clude— 

19 (A) interfaces between human information 

20 and communications technology systems; 

21 (B) voice-recognition systems; 

22 (C) software that improves interoperability 

23 and connectivity among health information sys24 tems; 
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1 (D) software dependability in systems crit2 ical to health care delivery; 

3 (E) measurement of the impact of informa4 tion technologies on the quality and productivity 

5 of health care; 

6 (F) health information enterprise manage7 ment; 

8 (G) health information technology security 

9 and integrity; and 

10 (H) relevant health information technology 

11 to reduce medical errors. 

12 (5) APPLICATIONS.—An institution of higher 

13 education (or a consortium thereof) seeking funding 

14 under this subsection shall submit an application to 

15 the Director of the National Institute of Standards 

16 and Technology at such time, in such manner, and 

17 containing such information as the Director may re18 quire. The application shall include, at a minimum, 

19 a description of— 

20 (A) the research projects that will be under21 taken by the Center established pursuant to as22 sistance under paragraph (1) and the respective 

23 contributions of the participating entities; 

24 (B) how the Center will promote active col25 laboration among scientists and engineers from 
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1 different disciplines, such as information tech2 nology, biologic sciences, management, social 

3 sciences, and other appropriate disciplines; 

4 (C) technology transfer activities to dem5 onstrate and diffuse the research results, tech6 nologies, and knowledge; and 

7 (D) how the Center will contribute to the 

8 education and training of researchers and other 

9 professionals in fields relevant to health informa10 tion enterprise integration. 

11 (b) NATIONAL INFORMATION TECHNOLOGY RESEARCH

12 AND DEVELOPMENT PROGRAM.—The National High-Per13 formance Computing Program established by section 101 of 

14 the High-Performance Computing Act of 1991 (15 U.S.C. 

15 5511) may review Federal research and development pro16 grams related to the development and deployment of health 

17 information technology, including activities related to— 

18 (1) computer infrastructure; 

19 (2) data security; 

20 (3) development of large-scale, distributed, reli21 able computing systems; 

22 (4) wired, wireless, and hybrid high-speed net23 working; 

24 (5) development of software and software-inten25 sive systems; 
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1 (6) human-computer interaction and informa2 tion management technologies; and 

3 (7) the social and economic implications of in4 formation technology. 

5 Subtitle C—Incentives for the Use of 

6 Health Information Technology 

7 PART I—GRANTS AND LOANS FUNDING 

8 SEC. 13301. GRANT, LOAN, AND DEMONSTRATION PRO9 GRAMS. 

10 Title XXX of the Public Health Service Act, as added 

11 by section 13101, is amended by adding at the end the fol12 lowing new subtitle: 

13 ‘‘Subtitle B—Incentives for the Use 

14 of Health Information Technology 

15 ‘‘SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE 

16 HEALTH INFORMATION TECHNOLOGY INFRA17 STRUCTURE. 

18 ‘‘(a) IN GENERAL.—The Secretary of Health and 

19 Human Services shall, using amounts appropriated under 

20 section 3018, invest in the infrastructure necessary to allow 

21 for and promote the electronic exchange and use of health 

22 information for each individual in the United States con23 sistent with the goals outlined in the strategic plan devel24 oped by the National Coordinator (and, as available) under 

25 section 3001. To the greatest extent practicable, the Sec-
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1 retary shall ensure that any funds so appropriated shall 

2 be used for the acquisition of health information technology 

3 that meets standards and certification criteria adopted be4 fore the date of the enactment of this title until such date 

5 as the standards are adopted under section 3004. The Sec6 retary shall invest funds through the different agencies with 

7 expertise in such goals, such as the Office of the National 

8 Coordinator for Health Information Technology, the Health 

9 Resources and Services Administration, the Agency for 

10 Healthcare Research and Quality, the Centers of Medicare 

11 & Medicaid Services, the Centers for Disease Control and 

12 Prevention, and the Indian Health Service to support the 

13 following: 

14 ‘‘(1) Health information technology architecture 

15 that will support the nationwide electronic exchange 

16 and use of health information in a secure, private, 

17 and accurate manner, including connecting health in18 formation exchanges, and which may include updat19 ing and implementing the infrastructure necessary 

20 within different agencies of the Department of Health 

21 and Human Services to support the electronic use 

22 and exchange of health information. 

23 ‘‘(2) Development and adoption of appropriate 

24 certified electronic health records for categories of pro25 viders not eligible for support under title XVIII or 
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1 XIX of the Social Security Act for the adoption of 

2 such records. 

3 ‘‘(3) Training on and dissemination of informa4 tion on best practices to integrate health information 

5 technology, including electronic health records, into a 

6 provider’s delivery of care, consistent with best prac7 tices learned from the Health Information Technology 

8 Research Center developed under section 3012, includ9 ing community health centers receiving assistance 

10 under section 330 of the Public Health Service Act, 

11 covered entities under section 340B of such Act, and 

12 providers participating in one or more of the pro13 grams under titles XVIII, XIX, and XXI of the Social 

14 Security Act (relating to Medicare, Medicaid, and the 

15 State Children’s Health Insurance Program). 

16 ‘‘(4) Infrastructure and tools for the promotion 

17 of telemedicine, including coordination among Fed18 eral agencies in the promotion of telemedicine. 

19 ‘‘(5) Promotion of the interoperability of clinical 

20 data repositories or registries. 

21 ‘‘(6) Promotion of technologies and best practices 

22 that enhance the protection of health information by 

23 all holders of individually identifiable health informa24 tion. 
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1 ‘‘(7) Improve and expand the use of health infor2 mation technology by public health departments. 

3 ‘‘(8) Provide $300,000,000 to support regional or 

4 sub-national efforts towards health information ex5 change. 

6 ‘‘(b) COORDINATION.—The Secretary shall ensure 

7 funds under this section are used in a coordinated manner 

8 with other health information promotion activities. 

9 ‘‘(c) ADDITIONAL USE OF FUNDS.—In addition to 

10 using funds as provided in subsection (a), the Secretary 

11 may use amounts appropriated under section 3018 to carry 

12 out activities that are provided for under laws in effect on 

13 the date of enactment of this title. 

14 ‘‘SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLE15 MENTATION ASSISTANCE. 

16 ‘‘(a) HEALTH INFORMATION TECHNOLOGY EXTENSION

17 PROGRAM.—To assist health care providers to adopt, imple18 ment, and effectively use certified EHR technology that al19 lows for the electronic exchange and use of health informa20 tion, the Secretary, acting through the Office of the National 

21 Coordinator, shall establish a health information technology 

22 extension program to provide health information technology 

23 assistance services to be carried out through the Department 

24 of Health and Human Services. The National Coordinator 

25 shall consult with other Federal agencies with demonstrated 
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1 experience and expertise in information technology services, 

2 such as the National Institute of Standards and Tech3 nology, in developing and implementing this program. 

4 ‘‘(b) HEALTH INFORMATION TECHNOLOGY RESEARCH

5 CENTER.— 

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

7 Health Information Technology Research Center (in 

8 this section referred to as the ‘Center’) to provide tech9 nical assistance and develop or recognize best prac10 tices to support and accelerate efforts to adopt, imple11 ment, and effectively utilize health information tech12 nology that allows for the electronic exchange and use 

13 of information in compliance with standards, imple14 mentation specifications, and certification criteria 

15 adopted under section 3004(b). 

16 ‘‘(2) INPUT.—The Center shall incorporate input 

17 from— 

18 ‘‘(A) other Federal agencies with dem19 onstrated experience and expertise in informa20 tion technology services such as the National In21 stitute of Standards and Technology; 

22 ‘‘(B) users of health information technology, 

23 such as providers and their support and clerical 

24 staff and others involved in the care and care co-
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1 ordination of patients, from the health care and 

2 health information technology industry; and 

3 ‘‘(C) others as appropriate. 

4 ‘‘(3) PURPOSES.—The purposes of the Center are 

5 to— 

6 ‘‘(A) provide a forum for the exchange of 

7 knowledge and experience; 

8 ‘‘(B) accelerate the transfer of lessons 

9 learned from existing public and private sector 

10 initiatives, including those currently receiving 

11 Federal financial support; 

12 ‘‘(C) assemble, analyze, and widely dissemi13 nate evidence and experience related to the adop14 tion, implementation, and effective use of health 

15 information technology that allows for the elec16 tronic exchange and use of information includ17 ing through the regional centers described in sub18 section (c); 

19 ‘‘(D) provide technical assistance for the es20 tablishment and evaluation of regional and local 

21 health information networks to facilitate the elec22 tronic exchange of information across health care 

23 settings and improve the quality of health care; 

24 ‘‘(E) provide technical assistance for the de25 velopment and dissemination of solutions to bar-
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1 riers to the exchange of electronic health informa2 tion; and 

3 ‘‘(F) learn about effective strategies to adopt 

4 and utilize health information technology in 

5 medically underserved communities. 

6 ‘‘(c) HEALTH INFORMATION TECHNOLOGY REGIONAL

7 EXTENSION CENTERS.— 

8 ‘‘(1) IN GENERAL.—The Secretary shall provide 

9 assistance for the creation and support of regional 

10 centers (in this subsection referred to as ‘regional cen11 ters’) to provide technical assistance and disseminate 

12 best practices and other information learned from the 

13 Center to support and accelerate efforts to adopt, im14 plement, and effectively utilize health information 

15 technology that allows for the electronic exchange and 

16 use of information in compliance with standards, im17 plementation specifications, and certification criteria 

18 adopted under section 3004. Activities conducted 

19 under this subsection shall be consistent with the stra20 tegic plan developed by the National Coordinator 

21 (and, as available) under section 3001. 

22 ‘‘(2) AFFILIATION.—Regional centers shall be af23 filiated with any United States-based nonprofit insti24 tution or organization, or group thereof, that applies 

25 and is awarded financial assistance under this sec-
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1 tion. Individual awards shall be decided on the basis 

2 of merit. 

3 ‘‘(3) OBJECTIVE.—The objective of the regional 

4 centers is to enhance and promote the adoption of 

5 health information technology through— 

6 ‘‘(A) assistance with the implementation, ef7 fective use, upgrading, and ongoing maintenance 

8 of health information technology, including elec9 tronic health records, to healthcare providers na10 tionwide; 

11 ‘‘(B) broad participation of individuals 

12 from industry, universities, and State govern13 ments; 

14 ‘‘(C) active dissemination of best practices 

15 and research on the implementation, effective 

16 use, upgrading, and ongoing maintenance of 

17 health information technology, including elec18 tronic health records, to health care providers in 

19 order to improve the quality of healthcare and 

20 protect the privacy and security of health infor21 mation; 

22 ‘‘(D) participation, to the extent prac23 ticable, in health information exchanges; 
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1 ‘‘(E) utilization, when appropriate, of the 

2 expertise and capability that exists in federal 

3 agencies other than the Department; and 

4 ‘‘(F) integration of health information tech5 nology, including electronic health records, into 

6 the initial and ongoing training of health profes7 sionals and others in the healthcare industry 

8 that would be instrumental to improving the 

9 quality of healthcare through the smooth and ac10 curate electronic use and exchange of health in11 formation. 

12 ‘‘(4) REGIONAL ASSISTANCE.—Each regional 

13 center shall aim to provide assistance and education 

14 to all providers in a region, but shall prioritize any 

15 direct assistance first to the following: 

16 ‘‘(A) Public or not-for-profit hospitals or 

17 critical access hospitals. 

18 ‘‘(B) Federally qualified health centers (as 

19 defined in section 1861(aa)(4) of the Social Se20 curity Act). 

21 ‘‘(C) Entities that are located in rural and 

22 other areas that serve uninsured, underinsured, 

23 and medically underserved individuals (regard24 less of whether such area is urban or rural). 
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1 ‘‘(D) Individual or small group practices 

2 (or a consortium thereof) that are primarily fo3 cused on primary care. 

4 ‘‘(5) FINANCIAL SUPPORT.—The Secretary may 

5 provide financial support to any regional center cre6 ated under this subsection for a period not to exceed 

7 four years. The Secretary may not provide more than 

8 50 percent of the capital and annual operating and 

9 maintenance funds required to create and maintain 

10 such a center, except in an instance of national eco11 nomic conditions which would render this cost-share 

12 requirement detrimental to the program and upon no13 tification to Congress as to the justification to waive 

14 the cost-share requirement. 

15 ‘‘(6) NOTICE OF PROGRAM DESCRIPTION AND

16 AVAILABILITY OF FUNDS.—The Secretary shall pub17 lish in the Federal Register, not later than 90 days 

18 after the date of the enactment of this Act, a draft de19 scription of the program for establishing regional cen20 ters under this subsection. Such description shall in21 clude the following: 

22 ‘‘(A) A detailed explanation of the program 

23 and the programs goals. 

24 ‘‘(B) Procedures to be followed by the appli25 cants. 
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1 ‘‘(C) Criteria for determining qualified ap2 plicants. 

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

4 available to centers under the program. 

5 ‘‘(7) APPLICATION REVIEW.—The Secretary shall 

6 subject each application under this subsection to 

7 merit review. In making a decision whether to ap8 prove such application and provide financial support, 

9 the Secretary shall consider at a minimum the merits 

10 of the application, including those portions of the ap11 plication regarding— 

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

13 assistance under this subsection and utilization 

14 of health information technology appropriate to 

15 the needs of particular categories of health care 

16 providers; 

17 ‘‘(B) the types of service to be provided to 

18 health care providers; 

19 ‘‘(C) geographical diversity and extent of 

20 service area; and 

21 ‘‘(D) the percentage of funding and amount 

22 of in-kind commitment from other sources. 

23 ‘‘(8) BIENNIAL EVALUATION.—Each regional cen24 ter which receives financial assistance under this sub25 section shall be evaluated biennially by an evaluation 
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1 panel appointed by the Secretary. Each evaluation 

2 panel shall be composed of private experts, none of 

3 whom shall be connected with the center involved, and 

4 of Federal officials. Each evaluation panel shall meas5 ure the involved center’s performance against the ob6 jective specified in paragraph (3). The Secretary shall 

7 not continue to provide funding to a regional center 

8 unless its evaluation is overall positive. 

9 ‘‘(9) CONTINUING SUPPORT.—After the second 

10 year of assistance under this subsection a regional 

11 center may receive additional support under this sub12 section if it has received positive evaluations and a 

13 finding by the Secretary that continuation of Federal 

14 funding to the center was in the best interest of provi15 sion of health information technology extension serv16 ices. 

17 ‘‘SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFORMA18 TION TECHNOLOGY. 

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

20 National Coordinator, shall establish a program in accord21 ance with this section to facilitate and expand the electronic 

22 movement and use of health information among organiza23 tions according to nationally recognized standards. 

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

25 a grant to a State or qualified State-designated entity (as 
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1 described in subsection (d)) that submits an application to 

2 the Secretary at such time, in such manner, and containing 

3 such information as the Secretary may specify, for the pur4 pose of planning activities described in subsection (b). 

5 ‘‘(c) IMPLEMENTATION GRANTS.—The Secretary may 

6 award a grant to a State or qualified State designated enti7 ty that— 

8 ‘‘(1) has submitted, and the Secretary has ap9 proved, a plan described in subsection (c) (regardless 

10 of whether such plan was prepared using amounts 

11 awarded under paragraph (1)); and 

12 ‘‘(2) submits an application at such time, in 

13 such manner, and containing such information as the 

14 Secretary may specify. 

15 ‘‘(d) USE OF FUNDS.—Amounts received under a 

16 grant under subsection (a)(3) shall be used to conduct ac17 tivities to facilitate and expand the electronic movement 

18 and use of health information among organizations accord19 ing to nationally recognized standards through activities 

20 that include— 

21 ‘‘(1) enhancing broad and varied participation 

22 in the authorized and secure nationwide electronic use 

23 and exchange of health information; 
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1 ‘‘(2) identifying State or local resources available 

2 towards a nationwide effort to promote health infor3 mation technology; 

4 ‘‘(3) complementing other Federal grants, pro5 grams, and efforts towards the promotion of health 

6 information technology; 

7 ‘‘(4) providing technical assistance for the devel8 opment and dissemination of solutions to barriers to 

9 the exchange of electronic health information; 

10 ‘‘(5) promoting effective strategies to adopt and 

11 utilize health information technology in medically un12 derserved communities; 

13 ‘‘(6) assisting patients in utilizing health infor14 mation technology; 

15 ‘‘(7) encouraging clinicians to work with Health 

16 Information Technology Regional Extension Centers 

17 as described in section 3012, to the extent they are 

18 available and valuable; 

19 ‘‘(8) supporting public health agencies’ author20 ized use of and access to electronic health information; 

21 ‘‘(9) promoting the use of electronic health 

22 records for quality improvement including through 

23 quality measures reporting; 

24 ‘‘(10) establishing and supporting health record 

25 banking models to further consumer-based consent 
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1 models that promote lifetime access to qualified health 

2 records, if such activities are included in the plan de3 scribed in subsection (e), and may contain smart card 

4 functionality; and 

5 ‘‘(11) such other activities as the Secretary may 

6 specify. 

7 ‘‘(e) PLAN.— 

8 ‘‘(1) IN GENERAL.—A plan described in this sub9 section is a plan that describes the activities to be 

10 carried out by a State or by the qualified State-des11 ignated entity within such State to facilitate and ex12 pand the electronic movement and use of health infor13 mation among organizations according to nationally 

14 recognized standards and implementation specifica15 tions. 

16 ‘‘(2) REQUIRED ELEMENTS.—A plan described 

17 in paragraph (1) shall— 

18 ‘‘(A) be pursued in the public interest; 

19 ‘‘(B) be consistent with the strategic plan 

20 developed by the National Coordinator (and, as 

21 available) under section 3001; 

22 ‘‘(C) include a description of the ways the 

23 State or qualified State-designated entity will 

24 carry out the activities described in subsection 

25 (b); and 
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1 ‘‘(D) contain such elements as the Secretary 

2 may require. 

3 ‘‘(f) QUALIFIED STATE-DESIGNATED ENTITY.—For 

4 purposes of this section, to be a qualified State-designated 

5 entity, with respect to a State, an entity shall— 

6 ‘‘(1) be designated by the State as eligible to re7 ceive awards under this section; 

8 ‘‘(2) be a not-for-profit entity with broad stake9 holder representation on its governing board; 

10 ‘‘(3) demonstrate that one of its principal goals 

11 is to use information technology to improve health 

12 care quality and efficiency through the authorized 

13 and secure electronic exchange and use of health in14 formation; 

15 ‘‘(4) adopt nondiscrimination and conflict of in16 terest policies that demonstrate a commitment to 

17 open, fair, and nondiscriminatory participation by 

18 stakeholders; and 

19 ‘‘(5) conform to such other requirements as the 

20 Secretary may establish. 

21 ‘‘(g) REQUIRED CONSULTATION.—In carrying out ac22 tivities described in subsections (a)(2) and (a)(3), a State 

23 or qualified State-designated entity shall consult with and 

24 consider the recommendations of— 
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1 ‘‘(1) health care providers (including providers 

2 that provide services to low income and underserved 

3 populations); 

4 ‘‘(2) health plans; 

5 ‘‘(3) patient or consumer organizations that rep6 resent the population to be served; 

7 ‘‘(4) health information technology vendors; 

8 ‘‘(5) health care purchasers and employers; 

9 ‘‘(6) public health agencies; 

10 ‘‘(7) health professions schools, universities and 

11 colleges; 

12 ‘‘(8) clinical researchers; 

13 ‘‘(9) other users of health information technology 

14 such as the support and clerical staff of providers and 

15 others involved in the care and care coordination of 

16 patients; and 

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

18 appropriate by the Secretary. 

19 ‘‘(h) CONTINUOUS IMPROVEMENT.—The Secretary 

20 shall annually evaluate the activities conducted under this 

21 section and shall, in awarding grants under this section, 

22 implement the lessons learned from such evaluation in a 

23 manner so that awards made subsequent to each such eval24 uation are made in a manner that, in the determination 

25 of the Secretary, will lead towards the greatest improvement 
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1 in quality of care, decrease in costs, and the most effective 

2 authorized and secure electronic exchange of health informa3 tion. 

4 ‘‘(i) REQUIRED MATCH.— 

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

6 with fiscal year 2011), the Secretary may not make 

7 a grant under subsection (a) to a State unless the 

8 State agrees to make available non-Federal contribu9 tions (which may include in-kind contributions) to10 ward the costs of a grant awarded under subsection 

11 (a)(3) in an amount equal to— 

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

13 for each $10 of Federal funds provided under the 

14 grant; 

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

16 for each $7 of Federal funds provided under the 

17 grant; and 

18 ‘‘(C) for fiscal year 2013 and each subse19 quent fiscal year, not less than $1 for each $3 of 

20 Federal funds provided under the grant. 

21 ‘‘(2) AUTHORITY TO REQUIRE STATE MATCH FOR

22 FISCAL YEARS BEFORE FISCAL YEAR 2011.—For any 

23 fiscal year during the grant program under this sec24 tion before fiscal year 2011, the Secretary may deter25 mine the extent to which there shall be required a 
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1 non-Federal contribution from a State receiving a 

2 grant under this section. 

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

4 TRIBES FOR THE DEVELOPMENT OF LOAN 

5 PROGRAMS TO FACILITATE THE WIDESPREAD 

6 ADOPTION OF CERTIFIED EHR TECHNOLOGY. 

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

8 award competitive grants to eligible entities for the estab9 lishment of programs for loans to health care providers to 

10 conduct the activities described in subsection (e). 

11 ‘‘(b) ELIGIBLE ENTITY DEFINED.—For purposes of 

12 this subsection, the term ‘eligible entity’ means a State or 

13 Indian tribe (as defined in the Indian Self-Determination 

14 and Education Assistance Act) that— 

15 ‘‘(1) submits to the National Coordinator an ap16 plication at such time, in such manner, and con17 taining such information as the National Coordinator 

18 may require; 

19 ‘‘(2) submits to the National Coordinator a stra20 tegic plan in accordance with subsection (d) and pro21 vides to the National Coordinator assurances that the 

22 entity will update such plan annually in accordance 

23 with such subsection; 
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1 ‘‘(3) provides assurances to the National Coordi2 nator that the entity will establish a Loan Fund in 

3 accordance with subsection (c); 

4 ‘‘(4) provides assurances to the National Coordi5 nator that the entity will not provide a loan from the 

6 Loan Fund to a health care provider unless the pro7 vider agrees to— 

8 ‘‘(A) submit reports on quality measures 

9 adopted by the Federal Government (by not later 

10 than 90 days after the date on which such meas11 ures are adopted), to— 

12 ‘‘(i) the Director of the Centers for 

13 Medicare & Medicaid Services (or his or her 

14 designee), in the case of an entity partici15 pating in the Medicare program under title 

16 XVIII of the Social Security Act or the 

17 Medicaid program under title XIX of such 

18 Act; or 

19 ‘‘(ii) the Secretary in the case of other 

20 entities; 

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

22 Secretary (through criteria established by the 

23 Secretary) that any certified EHR technology 

24 purchased, improved, or otherwise financially 

25 supported under a loan under this section is 
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1 used to exchange health information in a man2 ner that, in accordance with law and standards 

3 (as adopted under section 3005) applicable to the 

4 exchange of information, improves the quality of 

5 health care, such as promoting care coordination; 

6 ‘‘(C) comply with such other requirements 

7 as the entity or the Secretary may require; 

8 ‘‘(D) include a plan on how healthcare pro9 viders involved intend to maintain and support 

10 the certified EHR technology over time; and 

11 ‘‘(E) include a plan on how the healthcare 

12 providers involved intend to maintain and sup13 port the certified EHR technology that would be 

14 purchased with such loan, including the type of 

15 resources expected to be involved and any such 

16 other information as the State or Indian tribe, 

17 respectively, may require; and 

18 ‘‘(5) agrees to provide matching funds in accord19 ance with subsection (i). 

20 ‘‘(c) ESTABLISHMENT OF FUND.—For purposes of sub21 section (b)(3), an eligible entity shall establish a certified 

22 EHR technology loan fund (referred to in this subsection 

23 as a ‘Loan Fund’) and comply with the other requirements 

24 contained in this section. A grant to an eligible entity under 

25 this section shall be deposited in the Loan Fund established 
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1 by the eligible entity. No funds authorized by other provi2 sions of this title to be used for other purposes specified in 

3 this title shall be deposited in any Loan Fund. 

4 ‘‘(d) STRATEGIC PLAN.— 

5 ‘‘(1) IN GENERAL.—For purposes of subsection 

6 (b)(2), a strategic plan of an eligible entity under this 

7 subsection shall identify the intended uses of amounts 

8 available to the Loan Fund of such entity. 

9 ‘‘(2) CONTENTS.—A strategic plan under para10 graph (1), with respect to a Loan Fund of an eligible 

11 entity, shall include for a year the following: 

12 ‘‘(A) A list of the projects to be assisted 

13 through the Loan Fund during such year. 

14 ‘‘(B) A description of the criteria and meth15 ods established for the distribution of funds from 

16 the Loan Fund during the year. 

17 ‘‘(C) A description of the financial status of 

18 the Loan Fund as of the date of submission of 

19 the plan. 

20 ‘‘(D) The short-term and long-term goals of 

21 the Loan Fund. 

22 ‘‘(e) USE OF FUNDS.—Amounts deposited in a Loan 

23 Fund, including loan repayments and interest earned on 

24 such amounts, shall be used only for awarding loans or loan 

25 guarantees, making reimbursements described in subsection 
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1 (g)(4)(A), or as a source of reserve and security for lever2 aged loans, the proceeds of which are deposited in the Loan 

3 Fund established under subsection (a). Loans under this 

4 section may be used by a health care provider to— 

5 ‘‘(1) facilitate the purchase of certified EHR 

6 technology; 

7 ‘‘(2) enhance the utilization of certified EHR 

8 technology (which may include costs associated with 

9 upgrading health information technology so that it 

10 meets criteria necessary to be a certified EHR tech11 nology); 

12 ‘‘(3) train personnel in the use of such tech13 nology; or 

14 ‘‘(4) improve the secure electronic exchange of 

15 health information. 

16 ‘‘(f) TYPES OF ASSISTANCE.—Except as otherwise lim17 ited by applicable State law, amounts deposited into a 

18 Loan Fund under this subsection may only be used for the 

19 following: 

20 ‘‘(1) To award loans that comply with the fol21 lowing: 

22 ‘‘(A) The interest rate for each loan shall 

23 not exceed the market interest rate. 

24 ‘‘(B) The principal and interest payments 

25 on each loan shall commence not later than 1 
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1 year after the date the loan was awarded, and 

2 each loan shall be fully amortized not later than 

3 10 years after the date of the loan. 

4 ‘‘(C) The Loan Fund shall be credited with 

5 all payments of principal and interest on each 

6 loan awarded from the Loan Fund. 

7 ‘‘(2) To guarantee, or purchase insurance for, a 

8 local obligation (all of the proceeds of which finance 

9 a project eligible for assistance under this subsection) 

10 if the guarantee or purchase would improve credit 

11 market access or reduce the interest rate applicable to 

12 the obligation involved. 

13 ‘‘(3) As a source of revenue or security for the 

14 payment of principal and interest on revenue or gen15 eral obligation bonds issued by the eligible entity if 

16 the proceeds of the sale of the bonds will be deposited 

17 into the Loan Fund. 

18 ‘‘(4) To earn interest on the amounts deposited 

19 into the Loan Fund. 

20 ‘‘(5) To make reimbursements described in sub21 section (g)(4)(A). 

22 ‘‘(g) ADMINISTRATION OF LOAN FUNDS.— 

23 ‘‘(1) COMBINED FINANCIAL ADMINISTRATION.— 

24 An eligible entity may (as a convenience and to avoid 

25 unnecessary administrative costs) combine, in accord-
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1 ance with applicable State law, the financial admin2 istration of a Loan Fund established under this sub3 section with the financial administration of any other 

4 revolving fund established by the entity if otherwise 

5 not prohibited by the law under which the Loan Fund 

6 was established. 

7 ‘‘(2) COST OF ADMINISTERING FUND.—Each eli8 gible entity may annually use not to exceed 4 percent 

9 of the funds provided to the entity under a grant 

10 under this subsection to pay the reasonable costs of 

11 the administration of the programs under this section, 

12 including the recovery of reasonable costs expended to 

13 establish a Loan Fund which are incurred after the 

14 date of the enactment of this title. 

15 ‘‘(3) GUIDANCE AND REGULATIONS.—The Na16 tional Coordinator shall publish guidance and pro17 mulgate regulations as may be necessary to carry out 

18 the provisions of this section, including— 

19 ‘‘(A) provisions to ensure that each eligible 

20 entity commits and expends funds allotted to the 

21 entity under this subsection as efficiently as pos22 sible in accordance with this title and applicable 

23 State laws; and 

24 ‘‘(B) guidance to prevent waste, fraud, and 

25 abuse. 
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1 ‘‘(4) PRIVATE SECTOR CONTRIBUTIONS.— 

2 ‘‘(A) IN GENERAL.—A Loan Fund estab3 lished under this subsection may accept contribu4 tions from private sector entities, except that 

5 such entities may not specify the recipient or re6 cipients of any loan issued under this subsection. 

7 An eligible entity may agree to reimburse a pri8 vate sector entity for any contribution made 

9 under this subparagraph, except that the amount 

10 of such reimbursement may not be greater than 

11 the principal amount of the contribution made. 

12 ‘‘(B) AVAILABILITY OF INFORMATION.—An 

13 eligible entity shall make publicly available the 

14 identity of, and amount contributed by, any pri15 vate sector entity under subparagraph (A) and 

16 may issue letters of commendation or make other 

17 awards (that have no financial value) to any 

18 such entity. 

19 ‘‘(h) MATCHING REQUIREMENTS.— 

20 ‘‘(1) IN GENERAL.—The National Coordinator 

21 may not make a grant under subsection (a) to an eli22 gible entity unless the entity agrees to make available 

23 (directly or through donations from public or private 

24 entities) non-Federal contributions in cash to the costs 

25 of carrying out the activities for which the grant is 
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1 awarded in an amount equal to not less than $1 for 

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

3 ‘‘(2) DETERMINATION OF AMOUNT OF NON-FED4 ERAL CONTRIBUTION.—In determining the amount of 

5 non-Federal contributions that an eligible entity has 

6 provided pursuant to subparagraph (A), the National 

7 Coordinator may not include any amounts provided 

8 to the entity by the Federal Government. 

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

10 an award under this section prior to January 1, 2010. 

11 ‘‘SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE IN12 FORMATION TECHNOLOGY INTO CLINICAL 

13 EDUCATION. 

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

15 under this section to carry out demonstration projects to 

16 develop academic curricula integrating certified EHR tech17 nology in the clinical education of health professionals. 

18 Such awards shall be made on a competitive basis and pur19 suant to peer review. 

20 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant 

21 under subsection (a), an entity shall— 

22 ‘‘(1) submit to the Secretary an application at 

23 such time, in such manner, and containing such in24 formation as the Secretary may require; 
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1 ‘‘(2) submit to the Secretary a strategic plan for 

2 integrating certified EHR technology in the clinical 

3 education of health professionals to reduce medical er4 rors, increase access to prevention, reduce chronic dis5 eases, and enhance health care quality; 

6 ‘‘(3) be— 

7 ‘‘(A) a school of medicine, osteopathic medi8 cine, dentistry, or pharmacy, a graduate pro9 gram in behavioral or mental health, or any 

10 other graduate health professions school; 

11 ‘‘(B) a graduate school of nursing or physi12 cian assistant studies; 

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

14 described in subparagraph (A) or (B); or 

15 ‘‘(D) an institution with a graduate med16 ical education program in medicine, osteopathic 

17 medicine, dentistry, pharmacy, nursing, or phy18 sician assistance studies. 

19 ‘‘(4) provide for the collection of data regarding 

20 the effectiveness of the demonstration project to be 

21 funded under the grant in improving the safety of pa22 tients, the efficiency of health care delivery, and in 

23 increasing the likelihood that graduates of the grantee 

24 will adopt and incorporate certified EHR technology, 

25 in the delivery of health care services; and 
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1 ‘‘(5) provide matching funds in accordance with 

2 subsection (d). 

3 ‘‘(c) USE OF FUNDS.— 

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

5 under subsection (a), an eligible entity shall— 

6 ‘‘(A) use grant funds in collaboration with 

7 2 or more disciplines; and 

8 ‘‘(B) use grant funds to integrate certified 

9 EHR technology into community-based clinical 

10 education. 

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

12 use amounts received under a grant under subsection 

13 (a) to purchase hardware, software, or services. 

14 ‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 

15 provide more than 50 percent of the costs of any activity 

16 for which assistance is provided under subsection (a), except 

17 in an instance of national economic conditions which would 

18 render the cost-share requirement under this subsection det19 rimental to the program and upon notification to Congress 

20 as to the justification to waive the cost-share requirement. 

21 ‘‘(e) EVALUATION.—The Secretary shall take such ac22 tion as may be necessary to evaluate the projects funded 

23 under this section and publish, make available, and dis24 seminate the results of such evaluations on as wide a basis 

25 as is practicable. 
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1 ‘‘(f) REPORTS.—Not later than 1 year after the date 

2 of enactment of this title, and annually thereafter, the Sec3 retary shall submit to the Committee on Health, Education, 

4 Labor, and Pensions and the Committee on Finance of the 

5 Senate, and the Committee on Energy and Commerce of 

6 the House of Representatives a report that— 

7 ‘‘(1) describes the specific projects established 

8 under this section; and 

9 ‘‘(2) contains recommendations for Congress 

10 based on the evaluation conducted under subsection 

11 (e). 

12 ‘‘SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS 

13 ON HEALTH CARE. 

14 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

15 with the Director of the National Science Foundation, shall 

16 provide assistance to institutions of higher education (or 

17 consortia thereof) to establish or expand medical health 

18 informatics education programs, including certification, 

19 undergraduate, and masters degree programs, for both 

20 health care and information technology students to ensure 

21 the rapid and effective utilization and development of 

22 health information technologies (in the United States health 

23 care infrastructure). 

24 ‘‘(b) ACTIVITIES.—Activities for which assistance may 

25 be provided under subsection (a) may include the following: 
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1 ‘‘(1) Developing and revising curricula in med2 ical health informatics and related disciplines. 

3 ‘‘(2) Recruiting and retaining students to the 

4 program involved. 

5 ‘‘(3) Acquiring equipment necessary for student 

6 instruction in these programs, including the installa7 tion of testbed networks for student use. 

8 ‘‘(4) Establishing or enhancing bridge programs 

9 in the health informatics fields between community 

10 colleges and universities. 

11 ‘‘(c) PRIORITY.—In providing assistance under sub12 section (a), the Secretary shall give preference to the fol13 lowing: 

14 ‘‘(1) Existing education and training programs. 

15 ‘‘(2) Programs designed to be completed in less 

16 than six months. 

17 ‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 

18 provide more than 50 percent of the costs of any activity 

19 for which assistance is provided under subsection (a), except 

20 in an instance of national economic conditions which would 

21 render the cost-share requirement under this subsection det22 rimental to the program and upon notification to Congress 

23 as to the justification to waive the cost-share requirement. 
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1 ‘‘SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS. 

2 ‘‘(a) REPORTS.—The Secretary may require that an 

3 entity receiving assistance under this title shall submit to 

4 the Secretary, not later than the date that is 1 year after 

5 the date of receipt of such assistance, a report that in6 cludes— 

7 ‘‘(1) an analysis of the effectiveness of such ac8 tivities for which the entity receives such assistance, 

9 as compared to the goals for such activities; and 

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

11 healthcare quality and safety. 

12 ‘‘(b) REQUIREMENT TO IMPROVE QUALITY OF CARE

13 AND DECREASE IN COSTS.—The National Coordinator shall 

14 annually evaluate the activities conducted under this title 

15 and shall, in awarding grants, implement the lessons 

16 learned from such evaluation in a manner so that awards 

17 made subsequent to each such evaluation are made in a 

18 manner that, in the determination of the National Coordi19 nator, will result in the greatest improvement in the quality 

20 and efficiency of health care. 

21 ‘‘SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS. 

22 ‘‘For the purposes of carrying out this subtitle, there 

23 is authorized to be appropriated such sums as may be nec24 essary for each of the fiscal years 2009 through 2013. 

25 Amounts so appropriated shall remain available until ex26 pended.’’. 
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1 Subtitle D—Privacy 

2 SEC. 13400. DEFINITIONS. 

3 In this subtitle, except as specified otherwise: 

4 (1) BREACH.—The term ‘‘breach’’ means the un5 authorized acquisition, access, use, or disclosure of 

6 protected health information which compromises the 

7 security, privacy, or integrity of protected health in8 formation maintained by or on behalf of a person. 

9 Such term does not include any unintentional acqui10 sition, access, use, or disclosure of such information 

11 by an employee or agent of the covered entity or busi12 ness associate involved if such acquisition, access, use, 

13 or disclosure, respectively, was made in good faith 

14 and within the course and scope of the employment 

15 or other contractual relationship of such employee or 

16 agent, respectively, with the covered entity or business 

17 associate and if such information is not further ac18 quired, accessed, used, or disclosed by such employee 

19 or agent. 

20 (2) BUSINESS ASSOCIATE.—The term ‘‘business 

21 associate’’ has the meaning given such term in section 

22 160.103 of title 45, Code of Federal Regulations. 

23 (3) COVERED ENTITY.—The term ‘‘covered enti24 ty’’ has the meaning given such term in section 

25 160.103 of title 45, Code of Federal Regulations. 
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1 (4) DISCLOSE.—The terms ‘‘disclose’’ and ‘‘dis2 closure’’ have the meaning given the term ‘‘disclosure’’ 

3 in section 160.103 of title 45, Code of Federal Regula4 tions. 

5 (5) ELECTRONIC HEALTH RECORD.—The term 

6 ‘‘electronic health record’’ means an electronic record 

7 of health-related information on an individual that is 

8 created, gathered, managed, and consulted by author9 ized health care clinicians and staff. 

10 (6) HEALTH CARE OPERATIONS.—The term 

11 ‘‘health care operation’’ has the meaning given such 

12 term in section 164.501 of title 45, Code of Federal 

13 Regulations. 

14 (7) HEALTH CARE PROVIDER.—The term ‘‘health 

15 care provider’’ has the meaning given such term in 

16 section 160.103 of title 45, Code of Federal Regula17 tions. 

18 (8) HEALTH PLAN.—The term ‘‘health plan’’ has 

19 the meaning given such term in section 1171(5) of the 

20 Social Security Act. 

21 (9) NATIONAL COORDINATOR.—The term ‘‘Na22 tional Coordinator’’ means the head of the Office of 

23 the National Coordinator for Health Information 

24 Technology established under section 3001(a) of the 

25 Public Health Service Act, as added by section 13101. 
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1 (10) PAYMENT.—The term ‘‘payment’’ has the 

2 meaning given such term in section 164.501 of title 

3 45, Code of Federal Regulations. 

4 (11) PERSONAL HEALTH RECORD.—The term 

5 ‘‘personal health record’’ means an electronic record of 

6 individually identifiable health information on an in7 dividual that can be drawn from multiple sources and 

8 that is managed, shared, and controlled by or for the 

9 individual. 

10 (12) PROTECTED HEALTH INFORMATION.—The 

11 term ‘‘protected health information’’ has the meaning 

12 given such term in section 160.103 of title 45, Code 

13 of Federal Regulations. 

14 (13) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Health and Human Services. 

16 (14) SECURITY.—The term ‘‘security’’ has the 

17 meaning given such term in section 164.304 of title 

18 45, Code of Federal Regulations. 

19 (15) STATE.—The term ‘‘State’’ means each of 

20 the several States, the District of Columbia, Puerto 

21 Rico, the Virgin Islands, Guam, American Samoa, 

22 and the Northern Mariana Islands. 

23 (16) TREATMENT.—The term ‘‘treatment’’ has 

24 the meaning given such term in section 164.501 of 

25 title 45, Code of Federal Regulations. 
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1 (17) USE.—The term ‘‘use’’ has the meaning 

2 given such term in section 160.103 of title 45, Code 

3 of Federal Regulations. 

4 (18) VENDOR OF PERSONAL HEALTH

5 RECORDS.—The term ‘‘vendor of personal health 

6 records’’ means an entity, other than a covered entity 

7 (as defined in paragraph (3)), that offers or main8 tains a personal health record. 

9 PART I—IMPROVED PRIVACY PROVISIONS AND 

10 SECURITY PROVISIONS 

11 SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND 

12 PENALTIES TO BUSINESS ASSOCIATES OF 

13 COVERED ENTITIES; ANNUAL GUIDANCE ON 

14 SECURITY PROVISIONS. 

15 (a) APPLICATION OF SECURITY PROVISIONS.—Sections 

16 164.308, 164.310, 164.312, and 164.316 of title 45, Code 

17 of Federal Regulations, shall apply to a business associate 

18 of a covered entity in the same manner that such sections 

19 apply to the covered entity. The additional requirements of 

20 this title that relate to security and that are made applica21 ble with respect to covered entities shall also be applicable 

22 to such a business associate and shall be incorporated into 

23 the business associate agreement between the business asso24 ciate and the covered entity. 
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1 (b) APPLICATION OF CIVIL AND CRIMINAL PEN2 ALTIES.—In the case of a business associate that violates 

3 any security provision specified in subsection (a), sections 

4 1176 and 1177 of the Social Security Act (42 U.S.C. 

5 1320d–5, 1320d–6) shall apply to the business associate 

6 with respect to such violation in the same manner such sec7 tions apply to a covered entity that violates such security 

8 provision. 

9 (c) ANNUAL GUIDANCE.—For the first year beginning 

10 after the date of the enactment of this Act and annually 

11 thereafter, the Secretary of Health and Human Services 

12 shall, in consultation with industry stakeholders, annually 

13 issue guidance on the most effective and appropriate tech14 nical safeguards for use in carrying out the sections referred 

15 to in subsection (a) and the security standards in subpart 

16 C of part 164 of title 45, Code of Federal Regulations, as 

17 such provisions are in effect as of the date before the enact18 ment of this Act. 

19 SEC. 13402. NOTIFICATION IN THE CASE OF BREACH. 

20 (a) IN GENERAL.—A covered entity that accesses, 

21 maintains, retains, modifies, records, stores, destroys, or 

22 otherwise holds, uses, or discloses unsecured protected health 

23 information (as defined in subsection (h)(1)) shall, in the 

24 case of a breach of such information that is discovered by 

25 the covered entity, notify each individual whose unsecured 
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1 protected health information has been, or is reasonably be2 lieved by the covered entity to have been, accessed, acquired, 

3 or disclosed as a result of such breach. 

4 (b) NOTIFICATION OF COVERED ENTITY BY BUSINESS

5 ASSOCIATE.—A business associate of a covered entity that 

6 accesses, maintains, retains, modifies, records, stores, de7 stroys, or otherwise holds, uses, or discloses unsecured pro8 tected health information shall, following the discovery of 

9 a breach of such information, notify the covered entity of 

10 such breach. Such notice shall include the identification of 

11 each individual whose unsecured protected health informa12 tion has been, or is reasonably believed by the business asso13 ciate to have been, accessed, acquired, or disclosed during 

14 such breach. 

15 (c) BREACHES TREATED AS DISCOVERED.—For pur16 poses of this section, a breach shall be treated as discovered 

17 by a covered entity or by a business associate as of the first 

18 day on which such breach is known to such entity or asso19 ciate, respectively, (including any person, other than the in20 dividual committing the breach, that is an employee, officer, 

21 or other agent of such entity or associate, respectively) or 

22 should reasonably have been known to such entity or asso23 ciate (or person) to have occurred. 

24 (d) TIMELINESS OF NOTIFICATION.— 
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1 (1) IN GENERAL.—Subject to subsection (g), all 

2 notifications required under this section shall be made 

3 without unreasonable delay and in no case later than 

4 60 calendar days after the discovery of a breach by 

5 the covered entity involved (or business associate in6 volved in the case of a notification required under 

7 subsection (b)). 

8 (2) BURDEN OF PROOF.—The covered entity in9 volved (or business associate involved in the case of a 

10 notification required under subsection (b)), shall have 

11 the burden of demonstrating that all notifications 

12 were made as required under this part, including evi13 dence demonstrating the necessity of any delay. 

14 (e) METHODS OF NOTICE.— 

15 (1) INDIVIDUAL NOTICE.—Notice required under 

16 this section to be provided to an individual, with re17 spect to a breach, shall be provided promptly and in 

18 the following form: 

19 (A) Written notification by first-class mail 

20 to the individual (or the next of kin of the indi21 vidual if the individual is deceased) at the last 

22 known address of the individual or the next of 

23 kin, respectively, or, if specified as a preference 

24 by the individual, by electronic mail. The notifi-
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1 cation may be provided in one or more mailings 

2 as information is available. 

3 (B) In the case in which there is insuffi4 cient, or out-of-date contact information (includ5 ing a phone number, email address, or any other 

6 form of appropriate communication) that pre7 cludes direct written (or, if specified by the indi8 vidual under subparagraph (A), electronic) noti9 fication to the individual, a substitute form of 

10 notice shall be provided, including, in the case 

11 that there are 10 or more individuals for which 

12 there is insufficient or out-of-date contact infor13 mation, a conspicuous posting for a period deter14 mined by the Secretary on the home page of the 

15 Web site of the covered entity involved or notice 

16 in major print or broadcast media, including 

17 major media in geographic areas where the indi18 viduals affected by the breach likely reside. Such 

19 a notice in media or web posting will include a 

20 toll-free phone number where an individual can 

21 learn whether or not the individual’s unsecured 

22 protected health information is possibly included 

23 in the breach. 

24 (C) In any case deemed by the covered enti25 ty involved to require urgency because of possible 
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1 imminent misuse of unsecured protected health 

2 information, the covered entity, in addition to 

3 notice provided under subparagraph (A), may 

4 provide information to individuals by telephone 

5 or other means, as appropriate. 

6 (2) MEDIA NOTICE.—Notice shall be provided to 

7 prominent media outlets serving a State or jurisdic8 tion, following the discovery of a breach described in 

9 subsection (a), if the unsecured protected health infor10 mation of more than 500 residents of such State or 

11 jurisdiction is, or is reasonably believed to have been, 

12 accessed, acquired, or disclosed during such breach. 

13 (3) NOTICE TO SECRETARY.—Notice shall be pro14 vided to the Secretary by covered entities of unsecured 

15 protected health information that has been acquired 

16 or disclosed in a breach. If the breach was with re17 spect to 500 or more individuals than such notice 

18 must be provided immediately. If the breach was with 

19 respect to less than 500 individuals, the covered entity 

20 may maintain a log of any such breach occurring 

21 and annually submit such a log to the Secretary doc22 umenting such breaches occurring during the year in23 volved. 

24 (4) POSTING ON HHS PUBLIC WEBSITE.—The 

25 Secretary shall make available to the public on the 
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1 Internet website of the Department of Health and 

2 Human Services a list that identifies each covered en3 tity involved in a breach described in subsection (a) 

4 in which the unsecured protected health information 

5 of more than 500 individuals is acquired or disclosed. 

6 (f) CONTENT OF NOTIFICATION.—Regardless of the 

7 method by which notice is provided to individuals under 

8 this section, notice of a breach shall include, to the extent 

9 possible, the following: 

10 (1) A brief description of what happened, includ11 ing the date of the breach and the date of the dis12 covery of the breach, if known. 

13 (2) A description of the types of unsecured pro14 tected health information that were involved in the 

15 breach (such as full name, Social Security number, 

16 date of birth, home address, account number, or dis17 ability code). 

18 (3) The steps individuals should take to protect 

19 themselves from potential harm resulting from the 

20 breach. 

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

22 involved is doing to investigate the breach, to mitigate 

23 losses, and to protect against any further breaches. 

24 (5) Contact procedures for individuals to ask 

25 questions or learn additional information, which shall 
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1 include a toll-free telephone number, an e-mail ad2 dress, Web site, or postal address. 

3 (g) DELAY OF NOTIFICATION AUTHORIZED FOR LAW

4 ENFORCEMENT PURPOSES.—If a law enforcement official 

5 determines that a notification, notice, or posting required 

6 under this section would impede a criminal investigation 

7 or cause damage to national security, such notification, no8 tice, or posting shall be delayed in the same manner as pro9 vided under section 164.528(a)(2) of title 45, Code of Fed10 eral Regulations, in the case of a disclosure covered under 

11 such section. 

12 (h) UNSECURED PROTECTED HEALTH INFORMA13 TION.— 

14 (1) DEFINITION.— 

15 (A) IN GENERAL.—Subject to subparagraph 

16 (B), for purposes of this section, the term ‘‘unse17 cured protected health information’’ means pro18 tected health information that is not secured 

19 through the use of a technology or methodology 

20 specified by the Secretary in the guidance issued 

21 under paragraph (2). 

22 (B) EXCEPTION IN CASE TIMELY GUIDANCE

23 NOT ISSUED.—In the case that the Secretary does 

24 not issue guidance under paragraph (2) by the 

25 date specified in such paragraph, for purposes of 
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1 this section, the term ‘‘unsecured protected health 

2 information’’ shall mean protected health infor3 mation that is not secured by a technology 

4 standard that renders protected health informa5 tion unusable, unreadable, or indecipherable to 

6 unauthorized individuals and is developed or en7 dorsed by a standards developing organization 

8 that is accredited by the American National 

9 Standards Institute. 

10 (2) GUIDANCE.—For purposes of paragraph (1) 

11 and section 13407(f)(3), not later than the date that 

12 is 60 days after the date of the enactment of this Act, 

13 the Secretary shall, after consultation with stake14 holders, issue (and annually update) guidance speci15 fying the technologies and methodologies that render 

16 protected health information unusable, unreadable, or 

17 indecipherable to unauthorized individuals. 

18 (i) REPORT TO CONGRESS ON BREACHES.— 

19 (1) IN GENERAL.—Not later than 12 months 

20 after the date of the enactment of this Act and annu21 ally thereafter, the Secretary shall prepare and sub22 mit to the Committee on Finance and the Committee 

23 on Health, Education, Labor, and Pensions of the 

24 Senate and the Committee on Ways and Means and 

25 the Committee on Energy and Commerce of the House 
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1 of Representatives a report containing the informa2 tion described in paragraph (2) regarding breaches 

3 for which notice was provided to the Secretary under 

4 subsection (e)(3). 

5 (2) INFORMATION.—The information described 

6 in this paragraph regarding breaches specified in 

7 paragraph (1) shall include— 

8 (A) the number and nature of such breaches; 

9 and 

10 (B) actions taken in response to such 

11 breaches. 

12 (j) REGULATIONS; EFFECTIVE DATE.—To carry out 

13 this section, the Secretary of Health and Human Services 

14 shall promulgate interim final regulations by not later than 

15 the date that is 180 days after the date of the enactment 

16 of this title. The provisions of this section shall apply to 

17 breaches that are discovered on or after the date that is 30 

18 days after the date of publication of such interim final regu19 lations. 

20 SEC. 13403. EDUCATION ON HEALTH INFORMATION PRI21 VACY. 

22 (a) REGIONAL OFFICE PRIVACY ADVISORS.—Not later 

23 than 6 months after the date of the enactment of this Act, 

24 the Secretary shall designate an individual in each regional 

25 office of the Department of Health and Human Services to 
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1 offer guidance and education to covered entities, business 

2 associates, and individuals on their rights and responsibil3 ities related to Federal privacy and security requirements 

4 for protected health information. 

5 (b) EDUCATION INITIATIVE ON USES OF HEALTH IN6 FORMATION.—Not later than 12 months after the date of 

7 the enactment of this Act, the Office for Civil Rights within 

8 the Department of Health and Human Services shall de9 velop and maintain a multi-faceted national education ini10 tiative to enhance public transparency regarding the uses 

11 of protected health information, including programs to edu12 cate individuals about the potential uses of their protected 

13 health information, the effects of such uses, and the rights 

14 of individuals with respect to such uses. Such programs 

15 shall be conducted in a variety of languages and present 

16 information in a clear and understandable manner. 

17 SEC. 13404. APPLICATION OF PRIVACY PROVISIONS AND 

18 PENALTIES TO BUSINESS ASSOCIATES OF 

19 COVERED ENTITIES. 

20 (a) APPLICATION OF CONTRACT REQUIREMENTS.—In 

21 the case of a business associate of a covered entity that ob22 tains or creates protected health information pursuant to 

23 a written contract (or other written arrangement) described 

24 in section 164.502(e)(2) of title 45, Code of Federal Regula25 tions, with such covered entity, the business associate may 
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1 use and disclose such protected health information only if 

2 such use or disclosure, respectively, is in compliance with 

3 each applicable requirement of section 164.504(e) of such 

4 title. The additional requirements of this subtitle that relate 

5 to privacy and that are made applicable with respect to 

6 covered entities shall also be applicable to such a business 

7 associate and shall be incorporated into the business asso8 ciate agreement between the business associate and the cov9 ered entity. 

10 (b) APPLICATION OF KNOWLEDGE ELEMENTS ASSOCI11 ATED WITH CONTRACTS.—Section 164.504(e)(1)(ii) of title 

12 45, Code of Federal Regulations, shall apply to a business 

13 associate described in subsection (a), with respect to compli14 ance with such subsection, in the same manner that such 

15 section applies to a covered entity, with respect to compli16 ance with the standards in sections 164.502(e) and 

17 164.504(e) of such title, except that in applying such section 

18 164.504(e)(1)(ii) each reference to the business associate, 

19 with respect to a contract, shall be treated as a reference 

20 to the covered entity involved in such contract. 

21 (c) APPLICATION OF CIVIL AND CRIMINAL PEN22 ALTIES.—In the case of a business associate that violates 

23 any provision of subsection (a) or (b), the provisions of sec24 tions 1176 and 1177 of the Social Security Act (42 U.S.C. 

25 1320d–5, 1320d–6) shall apply to the business associate 
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1 with respect to such violation in the same manner as such 

2 provisions apply to a person who violates a provision of 

3 part C of title XI of such Act. 

4 SEC. 13405. RESTRICTIONS ON CERTAIN DISCLOSURES AND 

5 SALES OF HEALTH INFORMATION; ACCOUNT6 ING OF CERTAIN PROTECTED HEALTH INFOR7 MATION DISCLOSURES; ACCESS TO CERTAIN 

8 INFORMATION IN ELECTRONIC FORMAT. 

9 (a) REQUESTED RESTRICTIONS ON CERTAIN DISCLO10 SURES OF HEALTH INFORMATION.—In the case that an in11 dividual requests under paragraph (a)(1)(i)(A) of section 

12 164.522 of title 45, Code of Federal Regulations, that a cov13 ered entity restrict the disclosure of the protected health in14 formation of the individual, notwithstanding paragraph 

15 (a)(1)(ii) of such section, the covered entity must comply 

16 with the requested restriction if— 

17 (1) except as otherwise required by law, the dis18 closure is to a health plan for purposes of carrying 

19 out payment or health care operations (and is not for 

20 purposes of carrying out treatment); and 

21 (2) the protected health information pertains 

22 solely to a health care item or service for which the 

23 health care provider involved has been paid out of 

24 pocket in full. 
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1 (b) DISCLOSURES REQUIRED TO BE LIMITED TO THE

2 LIMITED DATA SET OR THE MINIMUM NECESSARY.— 

3 (1) IN GENERAL.— 

4 (A) IN GENERAL.—Subject to subparagraph 

5 (B), a covered entity shall be treated as being in 

6 compliance with section 164.502(b)(1) of title 45, 

7 Code of Federal Regulations, with respect to the 

8 use, disclosure, or request of protected health in9 formation described in such section, only if the 

10 covered entity limits such protected health infor11 mation, to the extent practicable, to the limited 

12 data set (as defined in section 164.514(e)(2) of 

13 such title) or, if needed by such entity, to the 

14 minimum necessary to accomplish the intended 

15 purpose of such use, disclosure, or request, re16 spectively. 

17 (B) GUIDANCE.—Not later than 18 months 

18 after the date of the enactment of this section, the 

19 Secretary shall issue guidance on what con20 stitutes ‘‘minimum necessary’’ for purposes of 

21 subpart E of part 164 of title 45, Code of Fed22 eral Regulation. In issuing such guidance the 

23 Secretary shall take into consideration the guid24 ance under section 13424(c) and the information 
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1 necessary to improve patient outcomes and to de2 tect, prevent, and manage chronic disease. 

3 (C) SUNSET.—Subparagraph (A) shall not 

4 apply on and after the effective date on which 

5 the Secretary issues the guidance under subpara6 graph (B). 

7 (2) DETERMINATION OF MINIMUM NECESSARY.— 

8 For purposes of paragraph (1), in the case of the dis9 closure of protected health information, the covered 

10 entity or business associate disclosing such informa11 tion shall determine what constitutes the minimum 

12 necessary to accomplish the intended purpose of such 

13 disclosure. 

14 (3) APPLICATION OF EXCEPTIONS.—The excep15 tions described in section 164.502(b)(2) of title 45, 

16 Code of Federal Regulations, shall apply to the re17 quirement under paragraph (1) as of the effective date 

18 described in section 13423 in the same manner that 

19 such exceptions apply to section 164.502(b)(1) of such 

20 title before such date. 

21 (4) RULE OF CONSTRUCTION.—Nothing in this 

22 subsection shall be construed as affecting the use, dis23 closure, or request of protected health information 

24 that has been de-identified. 
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1 (c) ACCOUNTING OF CERTAIN PROTECTED HEALTH IN2 FORMATION DISCLOSURES REQUIRED IF COVERED ENTITY

3 USES ELECTRONIC HEALTH RECORD.— 

4 ‘‘(1) IN GENERAL.—In applying section 164.528 

5 of title 45, Code of Federal Regulations, in the case 

6 that a covered entity uses or maintains an electronic 

7 health record with respect to protected health informa8 tion— 

9 ‘‘(A) the exception under paragraph 

10 (a)(1)(i) of such section shall not apply to disclo11 sures through an electronic health record made 

12 by such entity of such information; and 

13 ‘‘(B) an individual shall have a right to re14 ceive an accounting of disclosures described in 

15 such paragraph of such information made by 

16 such covered entity during only the three years 

17 prior to the date on which the accounting is re18 quested. 

19 ‘‘(2) REGULATIONS.—The Secretary shall pro20 mulgate regulations on what disclosures must be in21 cluded in an accounting referred to in paragraph 

22 (1)(A) and what information must be collected about 

23 each such disclosure not later than 18 months after 

24 the date on which the Secretary adopts standards on 

25 accounting for disclosure described in the section 
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1 3002(b)(2)(B)(iv) of the Public Health Service Act, as 

2 added by section 13101. Such regulations shall only 

3 require such information to be collected through an 

4 electronic health record in a manner that takes into 

5 account the interests of individuals in learning when 

6 their protected health information was disclosed and 

7 to whom it was disclosed, and the usefulness of such 

8 information to the individual, and takes into account 

9 the administrative and cost burden of accounting for 

10 such disclosures. 

11 ‘‘(3) CONSTRUCTION.—Nothing in this subsection 

12 shall be construed as— 

13 ‘‘(A) requiring a covered entity to account 

14 for disclosures of protected health information 

15 that are not made by such covered entity; or 

16 ‘‘(B) requiring a business associate of a cov17 ered entity to account for disclosures of protected 

18 health information that are not made by such 

19 business associate. 

20 ‘‘(4) REASONABLE FEE.—A covered entity may 

21 impose a reasonable fee on an individual for an ac22 counting performed under paragraph (1)(B). Any 

23 such fee shall not be greater than the entity’s labor 

24 costs in responding to the request. 

25 ‘‘(5) EFFECTIVE DATE.— 
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1 ‘‘(A) CURRENT USERS OF ELECTRONIC

2 RECORDS.—In the case of a covered entity inso3 far as it acquired an electronic health record as 

4 of January 1, 2009, paragraph (1) shall apply 

5 to disclosures, with respect to protected health in6 formation, made by the covered entity from such 

7 a record on and after January 1, 2014. 

8 ‘‘(B) OTHERS.—In the case of a covered en9 tity insofar as it acquires an electronic health 

10 record after January 1, 2009, paragraph (1) 

11 shall apply to disclosures, with respect to pro12 tected health information, made by the covered 

13 entity from such record on and after the later of 

14 the following: 

15 ‘‘(i) January 1, 2011; or 

16 ‘‘(ii) the date that it acquires an elec17 tronic health record. 

18 ‘‘(C) LATER DATE.—The Secretary may set 

19 an effective date that is later that the date speci20 fied under subparagraph (A) or (B) if the Sec21 retary determines that such later date it nec22 essary, but in no case may the date specified 

23 under— 

24 ‘‘(i) subparagraph (A) be later than 

25 2018; or 
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1 ‘‘(ii) subparagraph (B) be later than 

2 2014. 

3 (d) REVIEW OF HEALTH CARE OPERATIONS.—Not 

4 later than 18 months after the date of the enactment of this 

5 title, the Secretary shall review and evaluate the definition 

6 of health care operations under section 164.501 of title 45, 

7 Code of Federal Regulations, and to the extent appropriate, 

8 eliminate by regulation activities that can reasonably and 

9 efficiently be conducted through the use of information that 

10 is de-identified (in accordance with the requirements of sec11 tion 164.514(b) of such title) or that should require a valid 

12 authorization for use or disclosure. In promulgating such 

13 regulations, the Secretary shall not require that data be de14 identified or require valid authorization for use or disclo15 sure for activities within a covered entity described in para16 graph (1) of the definition of health care operations under 

17 such section 164.501. In promulgating such regulations, the 

18 Secretary may choose to narrow or clarify activities that 

19 the Secretary chooses to retain in the definition of health 

20 care operations and the Secretary shall take into account 

21 the report under section 13424(d). In such regulations the 

22 Secretary shall specify the date on which such regulations 

23 shall apply to disclosures made by a covered entity, but in 

24 no case would such date be sooner than the date that is 

25 24 months after the date of the enactment of this section. 
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1 Nothing in this subsection may be construed to supersede 

2 any provision under subsection (e) or section 13406(a). 

3 (e) PROHIBITION ON SALE OF ELECTRONIC HEALTH

4 RECORDS OR PROTECTED HEALTH INFORMATION OB5 TAINED FROM ELECTRONIC HEALTH RECORDS.— 

6 (1) IN GENERAL.—Except as provided in para7 graph (2), a covered entity or business associate shall 

8 not directly or indirectly receive remuneration in ex9 change for any protected health information of an in10 dividual unless the covered entity obtained from the 

11 individual, in accordance with section 164.508 of title 

12 45, Code of Federal Regulations, a valid authoriza13 tion that includes, in accordance with such section, a 

14 specification of whether the protected health informa15 tion can be further exchanged for remuneration by the 

16 entity receiving protected health information of that 

17 individual. 

18 (2) EXCEPTIONS.—Paragraph (1) shall not 

19 apply in the following cases: 

20 (A) The purpose of the exchange is for re21 search or public health activities (as described in 

22 sections 164.501, 164.512(i), and 164.512(b) of 

23 title 45, Code of Federal Regulations). 

24 (B) The purpose of the exchange is for the 

25 treatment of the individual, subject to any regu-
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1 lation that the Secretary may promulgate to pre2 vent protected health information from inappro3 priate access, use, or disclosure. 

4 (C) The purpose of the exchange is the 

5 health care operation specifically described in 

6 subparagraph (iv) of paragraph (6) of the defini7 tion of healthcare operations in section 164.501 

8 of title 45, Code of Federal Regulations. 

9 (D) The purpose of the exchange is for re10 muneration that is provided by a covered entity 

11 to a business associate for activities involving the 

12 exchange of protected health information that the 

13 business associate undertakes on behalf of and at 

14 the specific request of the covered entity pursuant 

15 to a business associate agreement. 

16 (E) The purpose of the exchange is to pro17 vide an individual with a copy of the individ18 ual’s protected health information pursuant to 

19 section 164.524 of title 45, Code of Federal Regu20 lations. 

21 (F) The purpose of the exchange is otherwise 

22 determined by the Secretary in regulations to be 

23 similarly necessary and appropriate as the ex24 ceptions provided in subparagraphs (A) through 

25 (E). 
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1 (3) REGULATIONS.—Not later than 18 months 

2 after the date of enactment of this title, the Secretary 

3 shall promulgate regulations to carry out this sub4 section. In promulgating such regulations, the Sec5 retary— 

6 (A) shall evaluate the impact of restricting 

7 the exception described in paragraph (2)(A) to 

8 require that the price charged for the purposes 

9 described in such paragraph reflects the costs of 

10 the preparation and transmittal of the data for 

11 such purpose, on research or public health activi12 ties, including those conducted by or for the use 

13 of the Food and Drug Administration; and 

14 (B) may further restrict the exception de15 scribed in paragraph (2)(A) to require that the 

16 price charged for the purposes described in such 

17 paragraph reflects the costs of the preparation 

18 and transmittal of the data for such purpose, if 

19 the Secretary finds that such further restriction 

20 will not impede such research or public health 

21 activities. 

22 (4) EFFECTIVE DATE.—Paragraph (1) shall 

23 apply to exchanges occurring on or after the date that 

24 is 6 months after the date of the promulgation of final 

25 regulations implementing this subsection. 
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1 (f) ACCESS TO CERTAIN INFORMATION IN ELECTRONIC

2 FORMAT.—In applying section 164.524 of title 45, Code of 

3 Federal Regulations, in the case that a covered entity uses 

4 or maintains an electronic health record with respect to 

5 protected health information of an individual— 

6 (1) the individual shall have a right to obtain 

7 from such covered entity a copy of such information 

8 in an electronic format; and 

9 (2) notwithstanding paragraph (c)(4) of such 

10 section, any fee that the covered entity may impose 

11 for providing such individual with a copy of such in12 formation (or a summary or explanation of such in13 formation) if such copy (or summary or explanation) 

14 is in an electronic form shall not be greater than the 

15 entity’s labor costs in responding to the request for the 

16 copy (or summary or explanation). 

17 SEC. 13406. CONDITIONS ON CERTAIN CONTACTS AS PART 

18 OF HEALTH CARE OPERATIONS. 

19 (a) MARKETING.— 

20 (1) IN GENERAL.—A communication by a cov21 ered entity or business associate that is about a prod22 uct or service and that encourages recipients of the 

23 communication to purchase or use the product or 

24 service shall not be considered a health care operation 

25 for purposes of subpart E of part 164 of title 45, Code 
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1 of Federal Regulations, unless the communication is 

2 made as described in subparagraph (i), (ii), or (iii) 

3 of paragraph (1) of the definition of marketing in sec4 tion 164.501 of such title. 

5 (2) PAYMENT FOR CERTAIN COMMUNICATIONS.— 

6 A communication by a covered entity or business as7 sociate that is described in subparagraph (i), (ii), or 

8 (iii) of paragraph (1) of the definition of marketing 

9 in section 164.501 of title 45, Code of Federal Regula10 tions, shall not be considered a health care operation 

11 for purposes of subpart E of part 164 of title 45, Code 

12 of Federal Regulations if the covered entity receives or 

13 has received direct or indirect payment in exchange 

14 for making such communication, except where— 

15 (A) such communication describes only a 

16 health care item or service that has previously 

17 been prescribed for or administered to the recipi18 ent of the communication, or a family member 

19 of such recipient; 

20 (B) each of the following conditions apply— 

21 (i) the communication is made by the 

22 covered entity; and 

23 (ii) the covered entity making such 

24 communication obtains from the recipient 

25 of the communication, in accordance with 
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1 section 164.508 of title 45, Code of Federal 

2 Regulations, a valid authorization (as de3 scribed in paragraph (b) of such section) 

4 with respect to such communication; or 

5 (C) each of the following conditions apply— 

6 (i) the communication is made on be7 half of the covered entity; 

8 (ii) the communication is consistent 

9 with the written contract (or other written 

10 arrangement described in section 

11 164.502(e)(2) of such title) between such 

12 business associate and covered entity; and 

13 (iii) the business associate making such 

14 communication, or the covered entity on be15 half of which the communication is made, 

16 obtains from the recipient of the commu17 nication, in accordance with section 

18 164.508 of title 45, Code of Federal Regula19 tions, a valid authorization (as described in 

20 paragraph (b) of such section) with respect 

21 to such communication. 

22 (c) EFFECTIVE DATE.—This section shall apply to 

23 contracting occurring on or after the effective date specified 

24 under section 13423. 
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1 SEC. 13407. TEMPORARY BREACH NOTIFICATION REQUIRE2 MENT FOR VENDORS OF PERSONAL HEALTH 

3 RECORDS AND OTHER NON-HIPAA COVERED 

4 ENTITIES. 

5 (a) IN GENERAL.—In accordance with subsection (c), 

6 each vendor of personal health records, following the dis7 covery of a breach of security of unsecured PHR identifiable 

8 health information that is in a personal health record 

9 maintained or offered by such vendor, and each entity de10 scribed in clause (ii) or (iii) of section 13424(b)(1)(A), fol11 lowing the discovery of a breach of security of such informa12 tion that is obtained through a product or service provided 

13 by such entity, shall— 

14 (1) notify each individual who is a citizen or 

15 resident of the United States whose unsecured PHR 

16 identifiable health information was acquired by an 

17 unauthorized person as a result of such a breach of 

18 security; and 

19 (2) notify the Federal Trade Commission. 

20 (b) NOTIFICATION BY THIRD PARTY SERVICE PRO21 VIDERS.—A third party service provider that provides serv22 ices to a vendor of personal health records or to an entity 

23 described in clause (ii) or (iii) of section 13424(b)(1)(A) 

24 in connection with the offering or maintenance of a per25 sonal health record or a related product or service and that 

26 accesses, maintains, retains, modifies, records, stores, de-
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1 stroys, or otherwise holds, uses, or discloses unsecured PHR 

2 identifiable health information in such a record as a result 

3 of such services shall, following the discovery of a breach 

4 of security of such information, notify such vendor or enti5 ty, respectively, of such breach. Such notice shall include 

6 the identification of each individual whose unsecured PHR 

7 identifiable health information has been, or is reasonably 

8 believed to have been, accessed, acquired, or disclosed during 

9 such breach. 

10 (c) APPLICATION OF REQUIREMENTS FOR TIMELINESS, 

11 METHOD, AND CONTENT OF NOTIFICATIONS.—Subsections 

12 (c), (d), (e), and (f) of section 13402 shall apply to a notifi13 cation required under subsection (a) and a vendor of per14 sonal health records, an entity described in subsection (a) 

15 and a third party service provider described in subsection 

16 (b), with respect to a breach of security under subsection 

17 (a) of unsecured PHR identifiable health information in 

18 such records maintained or offered by such vendor, in a 

19 manner specified by the Federal Trade Commission. 

20 (d) NOTIFICATION OF THE SECRETARY.—Upon receipt 

21 of a notification of a breach of security under subsection 

22 (a)(2), the Federal Trade Commission shall notify the Sec23 retary of such breach. 

24 (e) ENFORCEMENT.—A violation of subsection (a) or 

25 (b) shall be treated as an unfair and deceptive act or prac-
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1 tice in violation of a regulation under section 18(a)(1)(B) 

2 of the Federal Trade Commission Act (15 U.S.C. 

3 57a(a)(1)(B)) regarding unfair or deceptive acts or prac4 tices. 

5 (f) DEFINITIONS.—For purposes of this section: 

6 (1) BREACH OF SECURITY.—The term ‘‘breach of 

7 security’’ means, with respect to unsecured PHR 

8 identifiable health information of an individual in a 

9 personal health record, acquisition of such informa10 tion without the authorization of the individual. 

11 (2) PHR IDENTIFIABLE HEALTH INFORMATION.— 

12 The term ‘‘PHR identifiable health information’’ 

13 means individually identifiable health information, 

14 as defined in section 1171(6) of the Social Security 

15 Act (42 U.S.C. 1320d(6)), and includes, with respect 

16 to an individual, information— 

17 (A) that is provided by or on behalf of the 

18 individual; and 

19 (B) that identifies the individual or with 

20 respect to which there is a reasonable basis to be21 lieve that the information can be used to identify 

22 the individual. 

23 (3) UNSECURED PHR IDENTIFIABLE HEALTH IN24 FORMATION.— 
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1 (A) IN GENERAL.—Subject to subparagraph 

2 (B), the term ‘‘unsecured PHR identifiable 

3 health information’’ means PHR identifiable 

4 health information that is not protected through 

5 the use of a technology or methodology specified 

6 by the Secretary in the guidance issued under 

7 section 13402(h)(2). 

8 (B) EXCEPTION IN CASE TIMELY GUIDANCE

9 NOT ISSUED.—In the case that the Secretary does 

10 not issue guidance under section 13402(h)(2) by 

11 the date specified in such section, for purposes of 

12 this section, the term ‘‘unsecured PHR identifi13 able health information’’ shall mean PHR iden14 tifiable health information that is not secured by 

15 a technology standard that renders protected 

16 health information unusable, unreadable, or in17 decipherable to unauthorized individuals and 

18 that is developed or endorsed by a standards de19 veloping organization that is accredited by the 

20 American National Standards Institute. 

21 (g) REGULATIONS; EFFECTIVE DATE; SUNSET.— 

22 (1) REGULATIONS; EFFECTIVE DATE.—To carry 

23 out this section, the Federal Trade Commission shall, 

24 in accordance with section 553 of title 5, United 

25 States Code, promulgate interim final regulations by 
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1 not later than the date that is 180 days after the date 

2 of the enactment of this section. The provisions of this 

3 section shall apply to breaches of security that are 

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

5 the date of publication of such interim final regula6 tions. 

7 (2) SUNSET.—The provisions of this section shall 

8 not apply to breaches of security occurring on or after 

9 the earlier of the following the dates: 

10 (A) The date on which a standard relating 

11 to requirements for entities that are not covered 

12 entities that includes requirements relating to 

13 breach notification has been promulgated by the 

14 Secretary. 

15 (B) The date on which a standard relating 

16 to requirements for entities that are not covered 

17 entities that includes requirements relating to 

18 breach notification has been promulgated by the 

19 Federal Trade Commission and has taken effect. 

20 SEC. 13408. BUSINESS ASSOCIATE CONTRACTS REQUIRED 

21 FOR CERTAIN ENTITIES. 

22 Each organization, with respect to a covered entity, 

23 that provides data transmission of protected health infor24 mation to such entity (or its business associate) and that 

25 requires access on a routine basis to such protected health 
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1 information, such as a Health Information Exchange Orga2 nization, Regional Health Information Organization, E3 prescribing Gateway, or each vendor that contracts with a 

4 covered entity to allow that covered entity to offer a per5 sonal health record to patients as part of its electronic 

6 health record, is required to enter into a written contract 

7 (or other written arrangement) described in section 

8 164.502(e)(2) of title 45, Code of Federal Regulations and 

9 a written contract (or other arrangement) described in sec10 tion 164.308(b) of such title, with such entity and shall be 

11 treated as a business associate of the covered entity for pur12 poses of the provisions of this subtitle and subparts C and 

13 E of part 164 of title 45, Code of Federal Regulations, as 

14 such provisions are in effect as of the date of enactment 

15 of this title. 

16 SEC. 13409. CLARIFICATION OF APPLICATION OF WRONG17 FUL DISCLOSURES CRIMINAL PENALTIES. 

18 Section 1177(a) of the Social Security Act (42 U.S.C. 

19 1320d–6(a)) is amended by adding at the end the following 

20 new sentence: ‘‘For purposes of the previous sentence, a per21 son (including an employee or other individual) shall be 

22 considered to have obtained or disclosed individually identi23 fiable health information in violation of this part if the in24 formation is maintained by a covered entity (as defined in 

25 the HIPAA privacy regulation described in section 
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1 1180(b)(3)) and the individual obtained or disclosed such 

2 information without authorization.’’. 

3 SEC. 13410. IMPROVED ENFORCEMENT. 

4 (a) IN GENERAL.—Section 1176 of the Social Security 

5 Act (42 U.S.C. 1320d–5) is amended— 

6 (1) in subsection (b)(1), by striking ‘‘the act con7 stitutes an offense punishable under section 1177’’ 

8 and inserting ‘‘a penalty has been imposed under sec9 tion 1177 with respect to such act’’; and 

10 (2) by adding at the end the following new sub11 section: 

12 ‘‘(c) NONCOMPLIANCE DUE TO WILLFUL NEGLECT.— 

13 ‘‘(1) IN GENERAL.—A violation of a provision of 

14 this part due to willful neglect is a violation for 

15 which the Secretary is required to impose a penalty 

16 under subsection (a)(1). 

17 ‘‘(2) REQUIRED INVESTIGATION.—For purposes 

18 of paragraph (1), the Secretary shall formally inves19 tigate any complaint of a violation of a provision of 

20 this part if a preliminary investigation of the facts 

21 of the complaint indicate such a possible violation 

22 due to willful neglect.’’. 

23 (b) EFFECTIVE DATE; REGULATIONS.— 

24 (1) The amendments made by subsection (a) 

25 shall apply to penalties imposed on or after the date 
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1 that is 24 months after the date of the enactment of 

2 this title. 

3 (2) Not later than 18 months after the date of the 

4 enactment of this title, the Secretary of Health and 

5 Human Services shall promulgate regulations to im6 plement such amendments. 

7 (c) DISTRIBUTION OF CERTAIN CIVIL MONETARY PEN8 ALTIES COLLECTED.— 

9 (1) IN GENERAL.—Subject to the regulation pro10 mulgated pursuant to paragraph (3), any civil mone11 tary penalty or monetary settlement collected with re12 spect to an offense punishable under this subtitle or 

13 section 1176 of the Social Security Act (42 U.S.C. 

14 1320d–5) insofar as such section relates to privacy or 

15 security shall be transferred to the Office of Civil 

16 Rights of the Department of Health and Human 

17 Services to be used for purposes of enforcing the pro18 visions of this subtitle and subparts C and E of part 

19 164 of title 45, Code of Federal Regulations, as such 

20 provisions are in effect as of the date of enactment of 

21 this Act. 

22 (2) GAO REPORT.—Not later than 18 months 

23 after the date of the enactment of this title, the Comp24 troller General shall submit to the Secretary a report 

25 including recommendations for a methodology under 
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1 which an individual who is harmed by an act that 

2 constitutes an offense referred to in paragraph (1) 

3 may receive a percentage of any civil monetary pen4 alty or monetary settlement collected with respect to 

5 such offense. 

6 (3) ESTABLISHMENT OF METHODOLOGY TO DIS7 TRIBUTE PERCENTAGE OF CMPS COLLECTED TO

8 HARMED INDIVIDUALS.—Not later than 3 years after 

9 the date of the enactment of this title, the Secretary 

10 shall establish by regulation and based on the rec11 ommendations submitted under paragraph (2), a 

12 methodology under which an individual who is 

13 harmed by an act that constitutes an offense referred 

14 to in paragraph (1) may receive a percentage of any 

15 civil monetary penalty or monetary settlement col16 lected with respect to such offense. 

17 (4) APPLICATION OF METHODOLOGY.—The meth18 odology under paragraph (3) shall be applied with re19 spect to civil monetary penalties or monetary settle20 ments imposed on or after the effective date of the reg21 ulation. 

22 (d) TIERED INCREASE IN AMOUNT OF CIVIL MONE23 TARY PENALTIES.— 

24 (1) IN GENERAL.—Section 1176(a)(1) of the So25 cial Security Act (42 U.S.C. 1320d–5(a)(1)) is 
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1 amended by striking ‘‘who violates a provision of this 

2 part a penalty of not more than’’ and all that follows 

3 and inserting the following: ‘‘who violates a provision 

4 of this part— 

5 ‘‘(A) in the case of a violation of such pro6 vision in which it is established that the person 

7 did not know (and by exercising reasonable dili8 gence would not have known) that such person 

9 violated such provision, a penalty for each such 

10 violation of an amount that is at least the 

11 amount described in paragraph (3)(A) but not to 

12 exceed the amount described in paragraph 

13 (3)(D); 

14 ‘‘(B) in the case of a violation of such pro15 vision in which it is established that the viola16 tion was due to reasonable cause and not to will17 ful neglect, a penalty for each such violation of 

18 an amount that is at least the amount described 

19 in paragraph (3)(B) but not to exceed the 

20 amount described in paragraph (3)(D); and 

21 ‘‘(C) in the case of a violation of such provi22 sion in which it is established that the violation 

23 was due to willful neglect— 

24 ‘‘(i) if the violation is corrected as de25 scribed in subsection (b)(3)(A), a penalty in 
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1 an amount that is at least the amount de2 scribed in paragraph (3)(C) but not to ex3 ceed the amount described in paragraph 

4 (3)(D); and 

5 ‘‘(ii) if the violation is not corrected as 

6 described in such subsection, a penalty in 

7 an amount that is at least the amount de8 scribed in paragraph (3)(D). 

9 In determining the amount of a penalty under 

10 this section for a violation, the Secretary shall 

11 base such determination on the nature and ex12 tent of the violation and the nature and extent 

13 of the harm resulting from such violation.’’. 

14 (2) TIERS OF PENALTIES DESCRIBED.—Section 

15 1176(a) of such Act (42 U.S.C. 1320d–5(a)) is further 

16 amended by adding at the end the following new 

17 paragraph: 

18 ‘‘(3) TIERS OF PENALTIES DESCRIBED.—For 

19 purposes of paragraph (1), with respect to a violation 

20 by a person of a provision of this part— 

21 ‘‘(A) the amount described in this subpara22 graph is $100 for each such violation, except that 

23 the total amount imposed on the person for all 

24 such violations of an identical requirement or 
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1 prohibition during a calendar year may not ex2 ceed $25,000; 

3 ‘‘(B) the amount described in this subpara4 graph is $1,000 for each such violation, except 

5 that the total amount imposed on the person for 

6 all such violations of an identical requirement or 

7 prohibition during a calendar year may not ex8 ceed $100,000; 

9 ‘‘(C) the amount described in this subpara10 graph is $10,000 for each such violation, except 

11 that the total amount imposed on the person for 

12 all such violations of an identical requirement or 

13 prohibition during a calendar year may not ex14 ceed $250,000; and 

15 ‘‘(D) the amount described in this subpara16 graph is $50,000 for each such violation, except 

17 that the total amount imposed on the person for 

18 all such violations of an identical requirement or 

19 prohibition during a calendar year may not ex20 ceed $1,500,000.’’. 

21 (3) CONFORMING AMENDMENTS.—Section 

22 1176(b) of such Act (42 U.S.C. 1320d–5(b)) is amend23 ed— 
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1 (A) by striking paragraph (2) and redesig2 nating paragraphs (3) and (4) as paragraphs 

3 (2) and (3), respectively; and 

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

5 (i) in subparagraph (A), by striking 

6 ‘‘in subparagraph (B), a penalty may not 

7 be imposed under subsection (a) if’’ and all 

8 that follows through ‘‘the failure to comply 

9 is corrected’’ and inserting ‘‘in subpara10 graph (B) or subsection (a)(1)(C), a penalty 

11 may not be imposed under subsection (a) if 

12 the failure to comply is corrected’’; and 

13 (ii) in subparagraph (B), by striking 

14 ‘‘(A)(ii)’’ and inserting ‘‘(A)’’ each place it 

15 appears. 

16 (4) EFFECTIVE DATE.—The amendments made 

17 by this subsection shall apply to violations occurring 

18 after the date of the enactment of this title. 

19 (e) ENFORCEMENT THROUGH STATE ATTORNEYS GEN20 ERAL.— 

21 (1) IN GENERAL.—Section 1176 of the Social Se22 curity Act (42 U.S.C. 1320d–5) is amended by add23 ing at the end the following new subsection: 

24 ‘‘(d) ENFORCEMENT BY STATE ATTORNEYS GEN25 ERAL.— 
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1 ‘‘(1) CIVIL ACTION.—Except as provided in sub2 section (b), in any case in which the attorney general 

3 of a State has reason to believe that an interest of one 

4 or more of the residents of that State has been or is 

5 threatened or adversely affected by any person who 

6 violates a provision of this part, the attorney general 

7 of the State, as parens patriae, may bring a civil ac8 tion on behalf of such residents of the State in a dis9 trict court of the United States of appropriate juris10 diction— 

11 ‘‘(A) to enjoin further such violation by the 

12 defendant; or 

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

14 residents of the State, in an amount equal to the 

15 amount determined under paragraph (2). 

16 ‘‘(2) STATUTORY DAMAGES.— 

17 ‘‘(A) IN GENERAL.—For purposes of para18 graph (1)(B), the amount determined under this 

19 paragraph is the amount calculated by multi20 plying the number of violations by up to $100. 

21 For purposes of the preceding sentence, in the 

22 case of a continuing violation, the number of vio23 lations shall be determined consistent with the 

24 HIPAA privacy regulations (as defined in sec25 tion 1180(b)(3)) for violations of subsection (a). 
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1 ‘‘(B) LIMITATION.—The total amount of 

2 damages imposed on the person for all violations 

3 of an identical requirement or prohibition dur4 ing a calendar year may not exceed $25,000. 

5 ‘‘(C) REDUCTION OF DAMAGES.—In assess6 ing damages under subparagraph (A), the court 

7 may consider the factors the Secretary may con8 sider in determining the amount of a civil 

9 money penalty under subsection (a) under the 

10 HIPAA privacy regulations. 

11 ‘‘(3) ATTORNEY FEES.—In the case of any suc12 cessful action under paragraph (1), the court, in its 

13 discretion, may award the costs of the action and rea14 sonable attorney fees to the State. 

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

16 serve prior written notice of any action under para17 graph (1) upon the Secretary and provide the Sec18 retary with a copy of its complaint, except in any 

19 case in which such prior notice is not feasible, in 

20 which case the State shall serve such notice imme21 diately upon instituting such action. The Secretary 

22 shall have the right— 

23 ‘‘(A) to intervene in the action; 

24 ‘‘(B) upon so intervening, to be heard on all 

25 matters arising therein; and 
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1 ‘‘(C) to file petitions for appeal. 

2 ‘‘(5) CONSTRUCTION.—For purposes of bringing 

3 any civil action under paragraph (1), nothing in this 

4 section shall be construed to prevent an attorney gen5 eral of a State from exercising the powers conferred 

6 on the attorney general by the laws of that State. 

7 ‘‘(6) VENUE; SERVICE OF PROCESS.— 

8 ‘‘(A) VENUE.—Any action brought under 

9 paragraph (1) may be brought in the district 

10 court of the United States that meets applicable 

11 requirements relating to venue under section 

12 1391 of title 28, United States Code. 

13 ‘‘(B) SERVICE OF PROCESS.—In an action 

14 brought under paragraph (1), process may be 

15 served in any district in which the defendant— 

16 ‘‘(i) is an inhabitant; or 

17 ‘‘(ii) maintains a physical place of 

18 business. 

19 ‘‘(7) LIMITATION ON STATE ACTION WHILE FED20 ERAL ACTION IS PENDING.—If the Secretary has insti21 tuted an action against a person under subsection (a) 

22 with respect to a specific violation of this part, no 

23 State attorney general may bring an action under 

24 this subsection against the person with respect to such 

25 violation during the pendency of that action. 
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1 ‘‘(8) APPLICATION OF CMP STATUTE OF LIMITA2 TION.—A civil action may not be instituted with re3 spect to a violation of this part unless an action to 

4 impose a civil money penalty may be instituted 

5 under subsection (a) with respect to such violation 

6 consistent with the second sentence of section 

7 1128A(c)(1).’’. 

8 (2) CONFORMING AMENDMENTS.—Subsection (b) 

9 of such section, as amended by subsection (d)(3), is 

10 amended— 

11 (A) in paragraph (1), by striking ‘‘A pen12 alty may not be imposed under subsection (a)’’ 

13 and inserting ‘‘No penalty may be imposed 

14 under subsection (a) and no damages obtained 

15 under subsection (d)’’; 

16 (B) in paragraph (2)(A)— 

17 (i) after ‘‘subsection (a)(1)(C),’’, by 

18 striking ‘‘a penalty may not be imposed 

19 under subsection (a)’’ and inserting ‘‘no 

20 penalty may be imposed under subsection 

21 (a) and no damages obtained under sub22 section (d)’’; and 

23 (ii) in clause (ii), by inserting ‘‘or 

24 damages’’ after ‘‘the penalty’’; 
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1 (C) in paragraph (2)(B)(i), by striking 

2 ‘‘The period’’ and inserting ‘‘With respect to the 

3 imposition of a penalty by the Secretary under 

4 subsection (a), the period’’; and 

5 (D) in paragraph (3), by inserting ‘‘and 

6 any damages under subsection (d)’’ after ‘‘any 

7 penalty under subsection (a)’’. 

8 (3) EFFECTIVE DATE.—The amendments made 

9 by this subsection shall apply to violations occurring 

10 after the date of the enactment of this Act. 

11 (f) ALLOWING CONTINUED USE OF CORRECTIVE AC12 TION.—Such section is further amended by adding at the 

13 end the following new subsection: 

14 ‘‘(e) ALLOWING CONTINUED USE OF CORRECTIVE AC15 TION.—Nothing in this section shall be construed as pre16 venting the Office of Civil Rights of the Department of 

17 Health and Human Services from continuing, in its discre18 tion, to use corrective action without a penalty in cases 

19 where the person did not know (and by exercising reason20 able diligence would not have known) of the violation in21 volved.’’. 

22 SEC. 13411. AUDITS. 

23 The Secretary shall provide for periodic audits to en24 sure that covered entities and business associates that are 

25 subject to the requirements of this subtitle and subparts C 
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1 and E of part 164 of title 45, Code of Federal Regulations, 

2 as such provisions are in effect as of the date of enactment 

3 of this Act, comply with such requirements. 

4 PART II—RELATIONSHIP TO OTHER LAWS; REGU5 LATORY REFERENCES; EFFECTIVE DATE; RE6 PORTS 

7 SEC. 13421. RELATIONSHIP TO OTHER LAWS. 

8 (a) APPLICATION OF HIPAA STATE PREEMPTION.— 

9 Section 1178 of the Social Security Act (42 U.S.C. 1320d– 

10 7) shall apply to a provision or requirement under this sub11 title in the same manner that such section applies to a pro12 vision or requirement under part C of title XI of such Act 

13 or a standard or implementation specification adopted or 

14 established under sections 1172 through 1174 of such Act. 

15 (b) HEALTH INSURANCE PORTABILITY AND ACCOUNT16 ABILITY ACT.—The standards governing the privacy and 

17 security of individually identifiable health information pro18 mulgated by the Secretary under sections 262(a) and 264 

19 of the Health Insurance Portability and Accountability Act 

20 of 1996 shall remain in effect to the extent that they are 

21 consistent with this subtitle. The Secretary shall by rule 

22 amend such Federal regulations as required to make such 

23 regulations consistent with this subtitle. In carrying out the 

24 preceding sentence, the Secretary shall revise the definition 

25 of ‘‘psychotherapy notes’’ in section 164.501 of title 45, Code 
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1 of Federal Regulations, to include test data that is related 

2 to direct responses, scores, items, forms, protocols, manuals, 

3 or other materials that are part of a mental health evalua4 tion, as determined by the mental health professional pro5 viding treatment or evaluation. 

6 SEC. 13422. REGULATORY REFERENCES. 

7 Each reference in this subtitle to a provision of the 

8 Code of Federal Regulations refers to such provision as in 

9 effect on the date of the enactment of this title (or to the 

10 most recent update of such provision). 

11 SEC. 13423. EFFECTIVE DATE. 

12 Except as otherwise specifically provided, the provi13 sions of part I shall take effect on the date that is 12 months 

14 after the date of the enactment of this title. 

15 SEC. 13424. STUDIES, REPORTS, GUIDANCE. 

16 (a) REPORT ON COMPLIANCE.— 

17 (1) IN GENERAL.—For the first year beginning 

18 after the date of the enactment of this Act and annu19 ally thereafter, the Secretary shall prepare and sub20 mit to the Committee on Health, Education, Labor, 

21 and Pensions of the Senate and the Committee on 

22 Ways and Means and the Committee on Energy and 

23 Commerce of the House of Representatives a report 

24 concerning complaints of alleged violations of law, in25 cluding the provisions of this subtitle as well as the 
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1 provisions of subparts C and E of part 164 of title 

2 45, Code of Federal Regulations, (as such provisions 

3 are in effect as of the date of enactment of this Act) 

4 relating to privacy and security of health information 

5 that are received by the Secretary during the year for 

6 which the report is being prepared. Each such report 

7 shall include, with respect to such complaints received 

8 during the year— 

9 (A) the number of such complaints; 

10 (B) the number of such complaints resolved 

11 informally, a summary of the types of such com12 plaints so resolved, and the number of covered 

13 entities that received technical assistance from 

14 the Secretary during such year in order to 

15 achieve compliance with such provisions and the 

16 types of such technical assistance provided; 

17 (C) the number of such complaints that 

18 have resulted in the imposition of civil monetary 

19 penalties or have been resolved through monetary 

20 settlements, including the nature of the com21 plaints involved and the amount paid in each 

22 penalty or settlement; 

23 (D) the number of compliance reviews con24 ducted and the outcome of each such review; 
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1 (E) the number of subpoenas or inquiries 

2 issued; 

3 (F) the Secretary’s plan for improving com4 pliance with and enforcement of such provisions 

5 for the following year; and 

6 (G) the number of audits performed and a 

7 summary of audit findings pursuant to section 

8 13411. 

9 (2) AVAILABILITY TO PUBLIC.—Each report 

10 under paragraph (1) shall be made available to the 

11 public on the Internet website of the Department of 

12 Health and Human Services. 

13 (b) STUDY AND REPORT ON APPLICATION OF PRIVACY

14 AND SECURITY REQUIREMENTS TO NON-HIPAA COVERED

15 ENTITIES.— 

16 (1) STUDY.—Not later than one year after the 

17 date of the enactment of this title, the Secretary, in 

18 consultation with the Federal Trade Commission, 

19 shall conduct a study, and submit a report under 

20 paragraph (2), on privacy and security requirements 

21 for entities that are not covered entities or business 

22 associates as of the date of the enactment of this title, 

23 including— 

24 (A) requirements relating to security, pri25 vacy, and notification in the case of a breach of 
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1 security or privacy (including the applicability 

2 of an exemption to notification in the case of in3 dividually identifiable health information that 

4 has been rendered unusable, unreadable, or inde5 cipherable through technologies or methodologies 

6 recognized by appropriate professional organiza7 tion or standard setting bodies to provide effec8 tive security for the information) that should be 

9 applied to— 

10 (i) vendors of personal health records; 

11 (ii) entities that offer products or serv12 ices through the website of a vendor of per13 sonal health records; 

14 (iii) entities that are not covered enti15 ties and that offer products or services 

16 through the websites of covered entities that 

17 offer individuals personal health records; 

18 (iv) entities that are not covered enti19 ties and that access information in a per20 sonal health record or send information to 

21 a personal health record; and 

22 (v) third party service providers used 

23 by a vendor or entity described in clause 

24 (i), (ii), (iii), or (iv) to assist in providing 

25 personal health record products or services; 
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1 (B) a determination of which Federal gov2 ernment agency is best equipped to enforce such 

3 requirements recommended to be applied to such 

4 vendors, entities, and service providers under 

5 subparagraph (A); and 

6 (C) a timeframe for implementing regula7 tions based on such findings. 

8 (2) REPORT.—The Secretary shall submit to the 

9 Committee on Finance, the Committee on Health, 

10 Education, Labor, and Pensions, and the Committee 

11 on Commerce of the Senate and the Committee on 

12 Ways and Means and the Committee on Energy and 

13 Commerce of the House of Representatives a report on 

14 the findings of the study under paragraph (1) and 

15 shall include in such report recommendations on the 

16 privacy and security requirements described in such 

17 paragraph. 

18 (c) GUIDANCE ON IMPLEMENTATION SPECIFICATION

19 TO DE-IDENTIFY PROTECTED HEALTH INFORMATION.— 

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

21 of this title, the Secretary shall, in consultation with stake22 holders, issue guidance on how best to implement the re23 quirements for the de-identification of protected health in24 formation under section 164.514(b) of title 45, Code of Fed25 eral Regulations. 
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1 (d) GAO REPORT ON TREATMENT DISCLOSURES.—Not 

2 later than one year after the date of the enactment of this 

3 title, the Comptroller General of the United States shall sub4 mit to the Committee on Health, Education, Labor, and 

5 Pensions of the Senate and the Committee on Ways and 

6 Means and the Committee on Energy and Commerce of the 

7 House of Representatives a report on the best practices re8 lated to the disclosure among health care providers of pro9 tected health information of an individual for purposes of 

10 treatment of such individual. Such report shall include an 

11 examination of the best practices implemented by States 

12 and by other entities, such as health information exchanges 

13 and regional health information organizations, an exam14 ination of the extent to which such best practices are suc15 cessful with respect to the quality of the resulting health 

16 care provided to the individual and with respect to the abil17 ity of the health care provider to manage such best prac18 tices, and an examination of the use of electronic informed 

19 consent for disclosing protected health information for treat20 ment, payment, and health care operations. 

21 (e) REPORT REQUIRED.—Not later than 1 year after 

22 the date of enactment of this section, the Government Ac23 countability Office shall submit to Congress and the Sec24 retary of Health and Human Services a report on the im25 pact of any of the provisions of, or amendments made by, 
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1 this division or division B that are related to the Health 

2 Insurance Portability and Accountability Act of 1996 and 

3 section 552a of title 5, United States Code, on health insur4 ance premiums and overall health care costs. 

5 TITLE XIV—STATE FISCAL 

6 STABILIZATION 

7 DEPARTMENT OF EDUCATION 

8 STATE FISCAL STABILIZATION FUND

9 For necessary expenses for a State Fiscal Stabilization 

10 Fund, $39,000,000,000, which shall be administered by the 

11 Department of Education, and shall be available through 

12 September 30, 2010. 

13 GENERAL PROVISIONS—THIS TITLE 

14 SEC. 1401. ALLOCATIONS. 

15 (a) OUTLYING AREAS.—The Secretary of Education 

16 shall first allocate one-half of 1 percent to the outlying areas 

17 on the basis of their respective needs, as determined by the 

18 Secretary, for activities consistent with this title under such 

19 terms and conditions as the Secretary may determine. 

20 (b) ADMINISTRATION AND OVERSIGHT.—The Secretary 

21 may reserve up to $25,000,000 for administration and over22 sight of this title, including for program evaluation. 

23 (c) RESERVATION FOR ADDITIONAL PROGRAMS.—After 

24 reserving funds under subsections (a) and (b), the Secretary 
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1 shall reserve $7,500,000,000 for grants under sections 1406 

2 and 1407. 

3 (d) STATE ALLOCATIONS.—After carrying out sub4 sections (a), (b), and (c), the Secretary shall allocate the 

5 remaining funds made available to carry out this title to 

6 the States as follows: 

7 (1) 61 percent on the basis of their relative popu8 lation of individuals aged 5 through 24. 

9 (2) 39 percent on the basis of their relative total 

10 population. 

11 (e) STATE GRANTS.—From funds allocated under sub12 section (d), the Secretary shall make grants to the Governor 

13 of each State. 

14 (f) REALLOCATION.—The Governor shall return to the 

15 Secretary any funds received under subsection (e) that the 

16 Governor does not obligate within 1 year of receiving a 

17 grant, and the Secretary shall reallocate such funds to the 

18 remaining States in accordance with subsection (d). 

19 SEC. 1402. STATE USES OF FUNDS. 

20 EDUCATION FUND.—(a) IN GENERAL.—The Governor 

21 shall use the State’s allocation under section 1401 for the 

22 support of elementary, secondary, and postsecondary edu23 cation and, as applicable, early childhood education pro24 grams and services. 
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1 (b) RESTORING 2008 STATE SUPPORT FOR EDU2 CATION.— 

3 (1) IN GENERAL.—The Governor shall first use the 

4 funds described in subsection (a)— 

5 (A) to provide the amount of funds, through 

6 the State’s principal elementary and secondary 

7 funding formula, that is needed to restore State 

8 support for elementary and secondary education 

9 to the fiscal year 2008 level; and where applica10 ble, to allow existing State formula increases for 

11 fiscal years 2009, 2010, and 2011 to be imple12 mented and allow funding for phasing in State 

13 equity and adequacy adjustments that were en14 acted prior to July 1, 2008; and 

15 (B) to provide the amount of funds to pub16 lic institutions of higher education in the State 

17 that is needed to restore State support for post18 secondary education to the fiscal year 2008 level. 

19 (2) SHORTFALL.—If the Governor determines that the 

20 amount of funds available under subsection (a) is insuffi21 cient to restore State support for education to the levels de22 scribed in subparagraphs (A) and (B) of paragraph (1), 

23 the Governor shall allocate those funds between those clauses 

24 in proportion to the relative shortfall in State support for 

25 the education sectors described in those clauses. 
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1 (c) SUBGRANTS TO IMPROVE BASIC PROGRAMS OPER2 ATED BY LOCAL EDUCATIONAL AGENCIES.—After carrying 

3 out subsection (b), the Governor shall use any funds remain4 ing under subsection (a) to provide local educational agen5 cies in the State with subgrants based on their relative 

6 shares of funding under part A of title I of the Elementary 

7 and Secondary Education Act of 1965 (20 U.S.C. 6311 et 

8 seq.) for the most recent year for which data are available. 

9 SEC. 1403. USES OF FUNDS BY LOCAL EDUCATIONAL AGEN10 CIES. 

11 (1) IN GENERAL.—A local educational agency that re12 ceives funds under this title may use the funds for any ac13 tivity authorized by the Elementary and Secondary Edu14 cation Act of 1965 (20 U.S.C. 6301 et seq.) (‘‘ESEA’’), the 

15 Individuals with Disabilities Education Act (20 U.S.C. 

16 1400 et seq.) (‘‘IDEA’’), or the Carl D. Perkins Career and 

17 Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) 

18 (‘‘the Perkins Act’’). 

19 (b) PROHIBITION.—A local educational agency may 

20 not use funds received under this title for capital projects 

21 unless authorized by ESEA, IDEA, or the Perkins Act. 

22 SEC. 1404. USES OF FUNDS BY INSTITUTIONS OF HIGHER 

23 EDUCATION. 

24 (a) IN GENERAL.—A public institution of higher edu25 cation that receives funds under this title shall use the funds 
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1 for education and general expenditures, and in such a way 

2 as to mitigate the need to raise tuition and fees for in-State 

3 students. 

4 (b) PROHIBITION.—An institution of higher education 

5 may not use funds received under this title to increase its 

6 endowment. 

7 (c) ADDITIONAL PROHIBITION.—An institution of 

8 higher education may not use funds received under this title 

9 for construction, renovation, or facility repair. 

10 SEC. 1405. STATE APPLICATIONS. 

11 (a) IN GENERAL.—The Governor of a State desiring 

12 to receive an allocation under section 1401 shall submit an 

13 application at such time, in such manner, and containing 

14 such information as the Secretary may reasonably require. 

15 (b) APPLICATION.—The Governor shall— 

16 (1) include the assurances described in subsection 

17 (d); 

18 (2) provide baseline data that demonstrates the 

19 State’s current status in each of the areas described 

20 in such assurances; and 

21 (3) describe how the State intends to use its allo22 cation. 

23 (c) INCENTIVE GRANT APPLICATION.—The Governor of 

24 a State seeking a grant under section 1406 shall— 

25 (1) submit an application for consideration; 
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1 (2) describe the status of the State’s progress in 

2 each of the areas described in subsection (d); 

3 (3) describe the achievement and graduation 

4 rates of public elementary and secondary school stu5 dents in the State, and the strategies the State is em6 ploying to help ensure that all subgroups of students 

7 identified in 1111(b)(2) of ESEA in the State con8 tinue making progress toward meeting the State’s stu9 dent academic achievement standards; 

10 (4) describe how the State would use its grant 

11 funding to improve student academic achievement in 

12 the State, including how it will allocate the funds to 

13 give priority to high-need schools and local edu14 cational agencies; and 

15 (5) include a plan for evaluating its progress in 

16 closing achievement gaps. 

17 (d) ASSURANCES.—An application under subsection 

18 (b) shall include the following assurances: 

19 (1) MAINTENANCE OF EFFORT.— 

20 (A) ELEMENTARY AND SECONDARY EDU21 CATION.—The State will, in each of fiscal years 

22 2009 and 2010, maintain State support for ele23 mentary and secondary education at least at the 

24 level of such support in fiscal year 2006. 
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1 (B) HIGHER EDUCATION.—The State will, 

2 in each of fiscal years 2009 and 2010, maintain 

3 State support for public institutions of higher 

4 education (not including support for capital 

5 projects or for research and development) at least 

6 at the level of such support in fiscal year 2006. 

7 (2) ACHIEVING EQUITY IN TEACHER DISTRIBU8 TION.—The State will take action, including activi9 ties outlined in section 2113(c) of ESEA, to increase 

10 the number, and improve the distribution, of effective 

11 teachers and principals in high-poverty schools and 

12 local educational agencies throughout the State. 

13 (3) IMPROVING COLLECTION AND USE OF

14 DATA.—The State will establish a longitudinal data 

15 system that includes the elements described in section 

16 6401(e)(2)(D) of the America COMPETES Act (20 

17 U.S.C. 9871). 

18 (4) STANDARDS AND ASSESSMENTS.—The 

19 State— 

20 (A) will enhance the quality of academic as21 sessments described in section 1111(b)(3) of 

22 ESEA (20 U.S.C. 6311(b)(3)) through activities 

23 such as those described in section 6112(a) of such 

24 Act (20 U.S.C. 7301a(a)); 
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1 (B) will comply with the requirements of 

2 paragraphs (3)(C)(ix) and (6) of section 1111(b) 

3 of ESEA (20 U.S.C. 6311(b)) and section 

4 612(a)(16) of IDEA (20 U.S.C. 1412(a)(16)) re5 lated to the inclusion of children with disabilities 

6 and limited English proficient students in State 

7 assessments, the development of valid and reli8 able assessments for those students, and the pro9 vision of accommodations that enable their par10 ticipation in State assessments; and 

11 (C) will take steps to improve State aca12 demic content standards and student academic 

13 achievement standards consistent with 

14 6401(e)(1)(A)(ii) of the America COMPETES 

15 Act. 

16 (5) will ensure compliance with the requirements 

17 of section 1116(a)(7)(C)(iv) and section 1116(a)(8)(B) 

18 with respect to schools identified under such sections. 

19 SEC. 1406. STATE INCENTIVE GRANTS. 

20 (a) IN GENERAL.—From the total amount reserved 

21 under section 1401(c) that is not used for section 1407, the 

22 Secretary shall, in fiscal year 2010, make grants to States 

23 that have made significant progress in meeting the objec24 tives of paragraphs (2), (3), (4), and (5) of section 1405(d). 
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1 (b) BASIS FOR GRANTS.—The Secretary shall deter2 mine which States receive grants under this section, and 

3 the amount of those grants, on the basis of information pro4 vided in State applications under section 1405 and such 

5 other criteria as the Secretary determines appropriate. 

6 (c) SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES.— 

7 Each State receiving a grant under this section shall use 

8 at least 50 percent of the grant to provide local educational 

9 agencies in the State with subgrants based on their relative 

10 shares of funding under part A of title I of ESEA (20 

11 U.S.C. 6311 et seq.) for the most recent year. 

12 SEC. 1407. INNOVATION FUND. 

13 (a) IN GENERAL.— 

14 (1) ELIGIBLE ENTITY.—For the purposes of this 

15 section, the term ‘‘eligible entity’’ means— 

16 (A) A local educational agency; or 

17 (B) a partnership between a nonprofit orga18 nization and— 

19 (i) one or more local educational agen20 cies; 

21 (ii) or a consortium of schools. 

22 (2) PROGRAM ESTABLISHED.—From the total 

23 amount reserved under section 1401(c), the Secretary 

24 may reserve up to $650,000,000 to establish an Inno25 vation Fund, which shall consist of academic achieve-
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1 ment awards that recognize eligible entities that meet 

2 the requirements described in subsection (b). 

3 (3) BASIS FOR AWARDS.—The Secretary shall 

4 make awards to eligible entities that have made sig5 nificant gains in closing the achievement gap as de6 scribed in subsection (b)(1)— 

7 (A) to allow such eligible entities to expand 

8 their work and serve as models for best practices; 

9 (B) to allow such eligible entities to work in 

10 partnership with the private sector and the phil11 anthropic community; and 

12 (C) to identify and document best practices 

13 that can be shared, and taken to scale based on 

14 demonstrated success. 

15 (b) ELIGIBILITY.—To be eligible for such an award, 

16 an eligible entity shall— 

17 (1) have significantly closed the achievement 

18 gaps between groups of students described in section 

19 1111(b)(2) of ESEA (20 U.S.C. 6311(b)(2)); 

20 (2) have exceeded the State’s annual measurable 

21 objectives consistent with such section 1111(b)(2) for 

22 2 or more consecutive years or have demonstrated suc23 cess in significantly increasing student academic 

24 achievement for all groups of students described in 
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1 such section through another measure, such as meas2 ures described in section 1111(c)(2) of ESEA; 

3 (3) have made significant improvement in other 

4 areas, such as graduation rates or increased recruit5 ment and placement of high-quality teachers and 

6 school leaders, as demonstrated with meaningful data; 

7 and 

8 (4) demonstrate that they have established part9 nerships with the private sector, which may include 

10 philanthropic organizations, and that the private sec11 tor will provide matching funds in order to help 

12 bring results to scale. 

13 SEC. 1408. STATE REPORTS. 

14 A State receiving funds under this title shall submit 

15 a report to the Secretary, at such time and in such manner 

16 as the Secretary may require, that describes— 

17 (1) the uses of funds provided under this title 

18 within the State; 

19 (2) how the State distributed the funds it re20 ceived under this title; 

21 (3) the number of jobs that the Governor esti22 mates were saved or created with funds the State re23 ceived under this title; 
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1 (4) tax increases that the Governor estimates 

2 were averted because of the availability of funds from 

3 this title; 

4 (5) the State’s progress in reducing inequities in 

5 the distribution of teachers, in implementing a State 

6 student longitudinal data system, and in developing 

7 and implementing valid and reliable assessments for 

8 limited English proficient students and children with 

9 disabilities; 

10 (6) the tuition and fee increases for in-State stu11 dents imposed by public institutions of higher edu12 cation in the State during the period of availability 

13 of funds under this title, and a description of any ac14 tions taken by the State to limit those increases; and 

15 (7) the extent to which public institutions of 

16 higher education maintained, increased, or decreased 

17 enrollment of in-State students, including students el18 igible for Pell Grants or other need-based financial 

19 assistance. 

20 SEC. 1409. EVALUATION. 

21 The Comptroller General of the United States shall 

22 conduct evaluations of the programs under sections 1406 

23 and 1407 which shall include, but not be limited to, the 

24 criteria used for the awards made, the States selected for 

25 awards, award amounts, how each State used the award 
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1 received, and the impact of this funding on the progress 

2 made toward closing achievement gaps. 

3 SEC. 1410. SECRETARY’S REPORT TO CONGRESS. 

4 The Secretary shall submit a report to the Committee 

5 on Education and Labor of the House of Representatives, 

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

7 of the Senate, and the Committees on Appropriations of the 

8 House of Representatives and of the Senate, not less than 

9 6 months following the submission of the State reports, that 

10 evaluates the information provided in the State reports 

11 under section 1408. 

12 SEC. 1411. PROHIBITION ON PROVISION OF CERTAIN AS13 SISTANCE. 

14 No recipient of funds under this title shall use such 

15 funds to provide financial assistance to students to attend 

16 private elementary or secondary schools, unless such funds 

17 are used to provide special education and related services 

18 to children with disabilities, as authorized by the Individ19 uals with Disabilities Education Act (20 U.S.C. 1400 et 

20 seq.). 

21 SEC. 1412. DEFINITIONS. 

22 Except as otherwise provided in this title, as used in 

23 this title— 
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1 (1) the term ‘‘institution of higher education’’ 

2 has the meaning given such term in section 101 of the 

3 Higher Education Act of 1965 (20 U.S.C. 1001); 

4 (2) the term ‘‘Secretary’’ means the Secretary of 

5 Education; 

6 (3) the term ‘‘State’’ means each of the 50 States, 

7 the District of Columbia, and the Commonwealth of 

8 Puerto Rico; and 

9 (4) any other term that is defined in section 

10 9101 of ESEA (20 U.S.C. 7801) shall have the mean11 ing given the term in such section. 

12 SEC. 1413. REGULATORY RELIEF. 

13 (a) WAIVER AUTHORITY.—Subject to subsections (b) 

14 and (c), the Secretary of Education may, as applicable, 

15 waive or modify, in order to ease fiscal burdens, any re16 quirement relating to the following: 

17 (1) Maintenance of effort. 

18 (2) The use of Federal funds to supplement, not 

19 supplant, non-Federal funds. 

20 (b) DURATION.—A waiver under this section shall be 

21 for fiscal years 2009 and 2010. 

22 (c) LIMITATIONS.— 

23 (1) RELATION TO IDEA.—Nothing in this section 

24 shall be construed to permit the Secretary to waive or 

25 modify any provision of the Individuals with Disabil-
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1 ities Education Act (20 U.S.C. 1400 et seq.), except 

2 as described in a(1) and a(2). 

3 (2) MAINTENANCE OF EFFORT.—If the Secretary 

4 grants a waiver or modification under this section 

5 waiving or modifying a requirement relating to 

6 maintenance of effort for fiscal years 2009 and 2010, 

7 the level of effort required for fiscal year 2011 shall 

8 not be reduced because of the waiver or modification. 

9 TITLE XV—RECOVERY ACCOUNT10 ABILITY AND TRANSPARENCY 

11 BOARD AND RECOVERY INDE12 PENDENT ADVISORY PANEL 

13 SEC. 1501. DEFINITIONS. 

14 In this title: 

15 (1) AGENCY.—The term ‘‘agency’’ has the mean16 ing given under section 551 of title 5, United States 

17 Code. 

18 (2) BOARD.—The term ‘‘Board’’ means the Re19 covery Accountability and Transparency Board estab20 lished in section 1511. 

21 (3) CHAIRPERSON.—The term ‘‘Chairperson’’ 

22 means the Chairperson of the Board. 

23 (4) COVERED FUNDS.—The term ‘‘covered funds’’ 

24 means any funds that are expended or obligated— 
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1 (A) from appropriations made under this 

2 Act; and 

3 (B) under any other authorities provided 

4 under this Act. 

5 (5) PANEL.—The term ‘‘Panel’’ means the Recov6 ery Independent Advisory Panel established in section 

7 1531. 

8 Subtitle A—Recovery Accountability 

9 and Transparency Board 

10 SEC. 1511. ESTABLISHMENT OF THE RECOVERY ACCOUNT11 ABILITY AND TRANSPARENCY BOARD. 

12 There is established the Recovery Accountability and 

13 Transparency Board to coordinate and conduct oversight 

14 of covered funds to prevent fraud, waste, and abuse. 

15 SEC. 1512. COMPOSITION OF BOARD. 

16 (a) CHAIRPERSON.— 

17 (1) DESIGNATION OR APPOINTMENT.—The Presi18 dent shall— 

19 (A) designate the Deputy Director for Man20 agement of the Office of Management and Budget 

21 to serve as Chairperson of the Board; 

22 (B) designate another Federal officer who 

23 was appointed by the President to a position 

24 that required the advice and consent of the Sen25 ate, to serve as Chairperson of the Board; or 
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1 (C) appoint an individual as the Chair2 person of the Board, by and with the advice and 

3 consent of the Senate. 

4 (2) COMPENSATION.— 

5 (A) DESIGNATION OF FEDERAL OFFICER.— 

6 If the President designates a Federal officer 

7 under paragraph (1)(A) or (B) to serve as 

8 Chairperson, that Federal officer may not receive 

9 additional compensation for services performed 

10 as Chairperson. 

11 (B) APPOINTMENT OF NON-FEDERAL OFFI12 CER.—If the President appoints an individual 

13 as Chairperson under paragraph (1)(C), that in14 dividual shall be compensated at the rate of basic 

15 pay prescribed for level IV of the Executive 

16 Schedule under section 5315 of title 5, United 

17 States Code. 

18 (b) MEMBERS.—The members of the Board shall in19 clude— 

20 (1) the Inspectors General of the Departments of 

21 Agriculture, Commerce, Education, Energy, Health 

22 and Human Services, Homeland Security, Justice, 

23 Transportation, Treasury, and the Treasury Inspector 

24 General for Tax Administration; and 
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1 (2) any other Inspector General as designated by 

2 the President from any agency that expends or obli3 gates covered funds. 

4 SEC. 1513. FUNCTIONS OF THE BOARD. 

5 (a) FUNCTIONS.— 

6 (1) IN GENERAL.—The Board shall coordinate 

7 and conduct oversight of covered funds in order to 

8 prevent fraud, waste, and abuse. 

9 (2) SPECIFIC FUNCTIONS.—The functions of the 

10 Board shall include— 

11 (A) reviewing whether the reporting of con12 tracts and grants using covered funds meets ap13 plicable standards and specifies the purpose of 

14 the contract or grant and measures of perform15 ance; 

16 (B) reviewing whether competition require17 ments applicable to contracts and grants using 

18 covered funds have been satisfied; 

19 (C) auditing and investigating covered 

20 funds to determine whether wasteful spending, 

21 poor contract or grant management, or other 

22 abuses are occurring; 

23 (D) reviewing whether there are sufficient 

24 qualified acquisition and grant personnel over25 seeing covered funds; 
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1 (E) reviewing whether personnel whose du2 ties involve acquisitions or grants made with 

3 covered funds receive adequate training; and 

4 (F) reviewing whether there are appropriate 

5 mechanisms for interagency collaboration relat6 ing to covered funds. 

7 (b) REPORTS.— 

8 (1) QUARTERLY REPORTS.—The Board shall sub9 mit quarterly reports to the President and Congress, 

10 including the Committees on Appropriations of the 

11 Senate and House of Representatives, summarizing 

12 the findings of the Board and the findings of inspec13 tors general of agencies. The Board may submit addi14 tional reports as appropriate. 

15 (2) ANNUAL REPORTS.—The Board shall submit 

16 annual reports to the President and the Committees 

17 on Appropriations of the Senate and House of Rep18 resentatives, consolidating applicable quarterly re19 ports on the use of covered funds. 

20 (3) PUBLIC AVAILABILITY.— 

21 (A) IN GENERAL.—All reports submitted 

22 under this subsection shall be made publicly 

23 available and posted on a website established by 

24 the Board. 
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1 (B) REDACTIONS.—Any portion of a report 

2 submitted under this subsection may be redacted 

3 when made publicly available, if that portion 

4 would disclose information that is not subject to 

5 disclosure under section 552 of title 5, United 

6 States Code (commonly known as the Freedom of 

7 Information Act). 

8 (c) RECOMMENDATIONS.— 

9 (1) IN GENERAL.—The Board shall make rec10 ommendations to agencies on measures to prevent 

11 fraud, waste, and abuse relating to covered funds. 

12 (2) RESPONSIVE REPORTS.—Not later than 30 

13 days after receipt of a recommendation under para14 graph (1), an agency shall submit a report to the 

15 President, the congressional committees of jurisdic16 tion, including the Committees on Appropriations of 

17 the Senate and House of Representatives, and the 

18 Board on— 

19 (A) whether the agency agrees or disagrees 

20 with the recommendations; and 

21 (B) any actions the agency will take to im22 plement the recommendations. 
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1 SEC. 1514. POWERS OF THE BOARD. 

2 (a) IN GENERAL.—The Board shall conduct, supervise, 

3 and coordinate audits and investigations by inspectors gen4 eral of agencies relating to covered funds. 

5 (b) AUDITS AND INVESTIGATIONS.—The Board may— 

6 (1) conduct its own independent audits and in7 vestigations relating to covered funds; and 

8 (2) collaborate on audits and investigations re9 lating to covered funds with any inspector general of 

10 an agency. 

11 (c) AUTHORITIES.— 

12 (1) AUDITS AND INVESTIGATIONS.—In con13 ducting audits and investigations, the Board shall 

14 have the authorities provided under section 6 of the 

15 Inspector General Act of 1978 (5 U.S.C. App.). 

16 (2) STANDARDS AND GUIDELINES.—The Board 

17 shall carry out the powers under subsections (a) and 

18 (b) in accordance with section 4(b)(1) of the Inspector 

19 General Act of 1978 (5 U.S.C. App.). 

20 (d) PUBLIC HEARINGS.—The Board may hold public 

21 hearings and Board personnel may conduct investigative 

22 depositions. The head of each agency shall make all officers 

23 and employees of that agency available to provide testimony 

24 to the Board and Board personnel. The Board may issue 

25 subpoenas to compel the testimony of persons who are not 

26 Federal officers or employees. Any such subpoenas may be 
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1 enforced as provided under section 6 of the Inspector Gen2 eral Act of 1978 (5 U.S.C. App.). 

3 (e) CONTRACTS.—The Board may enter into contracts 

4 to enable the Board to discharge its duties under this sub5 title, including contracts and other arrangements for au6 dits, studies, analyses, and other services with public agen7 cies and with private persons, and make such payments as 

8 may be necessary to carry out the duties of the Board. 

9 (f) TRANSFER OF FUNDS.—The Board may transfer 

10 funds appropriated to the Board for expenses to support 

11 administrative support services and audits or investiga12 tions of covered funds to any office of inspector general, the 

13 Office of Management and Budget, the General Services Ad14 ministration, and the Panel. 

15 SEC. 1515. EMPLOYMENT, PERSONNEL, AND RELATED AU16 THORITIES. 

17 (a) EMPLOYMENT AND PERSONNEL AUTHORITIES.— 

18 (1) IN GENERAL.— 

19 (A) AUTHORITIES.—Subject to paragraph 

20 (2), the Board may exercise the authorities of 

21 subsections (b) through (i) of section 3161 of title 

22 5, United States Code (without regard to sub23 section (a) of that section). 

24 (B) APPLICATION.—For purposes of exer25 cising the authorities described under subpara-
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1 graph (A), the term ‘‘Chairperson of the Board’’ 

2 shall be substituted for the term ‘‘head of a tem3 porary organization’’. 

4 (C) CONSULTATION.—In exercising the au5 thorities described under subparagraph (A), the 

6 Chairperson shall consult with members of the 

7 Board. 

8 (2) EMPLOYMENT AUTHORITIES.—In exercising 

9 the employment authorities under subsection (b) of 

10 section 3161 of title 5, United States Code, as pro11 vided under paragraph (1) of this subsection— 

12 (A) paragraph (2) of subsection (b) of sec13 tion 3161 of that title (relating to periods of ap14 pointments) shall not apply; and 

15 (B) no period of appointment may exceed 

16 the date on which the Board terminates under 

17 section 1521. 

18 (b) INFORMATION AND ASSISTANCE.— 

19 (1) IN GENERAL.—Upon request of the Board for 

20 information or assistance from any agency or other 

21 entity of the Federal Government, the head of such en22 tity shall, insofar as is practicable and not in con23 travention of any existing law, furnish such informa24 tion or assistance to the Board, or an authorized des25 ignee. 
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1 (2) REPORT OF REFUSALS.—Whenever informa2 tion or assistance requested by the Board is, in the 

3 judgment of the Board, unreasonably refused or not 

4 provided, the Board shall report the circumstances to 

5 the congressional committees of jurisdiction, including 

6 the Committees on Appropriations of the Senate and 

7 House of Representatives, without delay. 

8 (c) ADMINISTRATIVE SUPPORT.—The General Services 

9 Administration shall provide the Board with administra10 tive support services, including the provision of office space 

11 and facilities. 

12 SEC. 1516. INDEPENDENCE OF INSPECTORS GENERAL. 

13 (a) INDEPENDENT AUTHORITY.—Nothing in this sub14 title shall affect the independent authority of an inspector 

15 general to determine whether to conduct an audit or inves16 tigation of covered funds. 

17 (b) REQUESTS BY BOARD.—If the Board requests that 

18 an inspector general conduct or refrain from conducting an 

19 audit or investigation and the inspector general rejects the 

20 request in whole or in part, the inspector general shall, not 

21 later than 30 days after rejecting the request, submit a re22 port to the Board, the head of the applicable agency, and 

23 the congressional committees of jurisdiction, including the 

24 Committees on Appropriations of the Senate and House of 

25 Representatives. The report shall state the reasons that the 
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1 inspector general has rejected the request in whole or in 

2 part. 

3 SEC. 1517. COORDINATION WITH THE COMPTROLLER GEN4 ERAL AND STATE AUDITORS. 

5 The Board shall coordinate its oversight activities with 

6 the Comptroller General of the United States and State 

7 auditor generals. 

8 SEC. 1518. PROTECTING STATE AND LOCAL GOVERNMENT 

9 AND CONTRACTOR WHISTLEBLOWERS. 

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

11 any non-Federal employer receiving covered funds may not 

12 be discharged, demoted, or otherwise discriminated against 

13 as a reprisal for disclosing to the Board, an inspector gen14 eral, the Comptroller General, a member of Congress, or a 

15 the head of a Federal agency, or their representatives, infor16 mation that the employee reasonably believes is evidence 

17 of— 

18 (1) gross mismanagement of an agency contract 

19 or grant relating to covered funds; 

20 (2) a gross waste of covered funds; 

21 (3) a substantial and specific danger to public 

22 health or safety; or 

23 (4) a violation of law related to an agency con24 tract (including the competition for or negotiation of 
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1 a contract) or grant, awarded or issued relating to 

2 covered funds. 

3 (b) INVESTIGATION OF COMPLAINTS.— 

4 (1) IN GENERAL.—A person who believes that the 

5 person has been subjected to a reprisal prohibited by 

6 subsection (a) may submit a complaint to the appro7 priate inspector general. Unless the inspector general 

8 determines that the complaint is frivolous, the inspec9 tor general shall investigate the complaint and, upon 

10 completion of such investigation, submit a report of 

11 the findings of the investigation to the person, the 

12 person’s employer, the head of the appropriate agency, 

13 and the Board. 

14 (2) TIME LIMITATIONS FOR ACTIONS.— 

15 (A) IN GENERAL.—Except as provided 

16 under subparagraph (B), the inspector general 

17 shall make a determination that a complaint is 

18 frivolous or submit a report under paragraph (1) 

19 within 180 days after receiving the complaint. 

20 (B) EXTENSION.—If the inspector general is 

21 unable to complete an investigation in time to 

22 submit a report within the 180-day period speci23 fied under subparagraph (A) and the person sub24 mitting the complaint agrees to an extension of 

25 time, the inspector general shall submit a report 
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1 under paragraph (1) within such additional pe2 riod of time as shall be agreed upon between the 

3 inspector general and the person submitting the 

4 complaint. 

5 (c) REMEDY AND ENFORCEMENT AUTHORITY.— 

6 (1) AGENCY ACTION.—Not later than 30 days 

7 after receiving an inspector general report under sub8 section (b), the head of the agency concerned shall de9 termine whether there is sufficient basis to conclude 

10 that the non-Federal employer has subjected the com11 plainant to a reprisal prohibited by subsection (a) 

12 and shall either issue an order denying relief or shall 

13 take 1 or more of the following actions: 

14 (A) Order the employer to take affirmative 

15 action to abate the reprisal. 

16 (B) Order the employer to reinstate the per17 son to the position that the person held before the 

18 reprisal, together with the compensation (includ19 ing back pay), employment benefits, and other 

20 terms and conditions of employment that would 

21 apply to the person in that position if the re22 prisal had not been taken. 

23 (C) Order the employer to pay the com24 plainant an amount equal to the aggregate 

25 amount of all costs and expenses (including at-
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1 torneys’ fees and expert witnesses’ fees) that were 

2 reasonably incurred by the complainant for, or 

3 in connection with, bringing the complaint re4 garding the reprisal, as determined by the head 

5 of the agency. 

6 (2) CIVIL ACTION.—If the head of an agency 

7 issues an order denying relief under paragraph (1) or 

8 has not issued an order within 210 days after the 

9 submission of a complaint under subsection (b), or in 

10 the case of an extension of time under subsection 

11 (b)(2)(B), not later than 30 days after the expiration 

12 of the extension of time, and there is no showing that 

13 such delay is due to the bad faith of the complainant, 

14 the complainant shall be deemed to have exhausted all 

15 administrative remedies with respect to the com16 plaint, and the complainant may bring a de novo ac17 tion at law or equity against the employer to seek 

18 compensatory damages and other relief available 

19 under this section in the appropriate district court of 

20 the United States, which shall have jurisdiction over 

21 such an action without regard to the amount in con22 troversy. Such an action shall, at the request of either 

23 party to the action, be tried by the court with a jury. 

24 (3) EVIDENCE.—An inspector general determina25 tion and an agency head order denying relief under 
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1 paragraph (2) shall be admissible in evidence in any 

2 de novo action at law or equity brought in accordance 

3 with this subsection. 

4 (4) JUDICIAL ENFORCEMENT OF ORDER.—When5 ever a person fails to comply with an order issued 

6 under paragraph (1), the head of the agency shall file 

7 an action for enforcement of such order in the United 

8 States district court for a district in which the re9 prisal was found to have occurred. In any action 

10 brought under this paragraph, the court may grant 

11 appropriate relief, including injunctive relief and 

12 compensatory and exemplary damages. 

13 (5) JUDICIAL REVIEW.—Any person adversely af14 fected or aggrieved by an order issued under para15 graph (1) may obtain review of the order’s conform16 ance with this subsection, and any regulations issued 

17 to carry out this section, in the United States court 

18 of appeals for a circuit in which the reprisal is al19 leged in the order to have occurred. No petition seek20 ing such review may be filed more than 60 days after 

21 issuance of the order by the head of the agency. Re22 view shall conform to chapter 7 of title 5, United 

23 States Code. 

24 (d) RULE OF CONSTRUCTION.—Nothing in this section 

25 may be construed to authorize the discharge of, demotion 
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1 of, or discrimination against an employee for a disclosure 

2 other than a disclosure protected by subsection (a) or to 

3 modify or derogate from a right or remedy otherwise avail4 able to the employee. 

5 SEC. 1519. BOARD WEBSITE. 

6 (a) ESTABLISHMENT.—The Board shall establish and 

7 maintain a user-friendly, public-facing website to foster 

8 greater accountability and transparency in the use of cov9 ered funds. 

10 (b) PURPOSE.—The website established and main11 tained under subsection (a) shall be a portal or gateway 

12 to key information relating to this Act and provide connec13 tions to other Government websites with related informa14 tion. 

15 (c) CONTENT AND FUNCTION.—In establishing the 

16 website established and maintained under subsection (a), 

17 the Board shall ensure the following: 

18 (1) The website shall provide materials explain19 ing what this Act means for citizens. The materials 

20 shall be easy to understand and regularly updated. 

21 (2) The website shall provide accountability in22 formation, including a database of findings from au23 dits, inspectors general, and the Government Account24 ability Office. 
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1 (3) The website shall provide data on relevant 

2 economic, financial, grant, and contract information 

3 in user-friendly visual presentations to enhance pub4 lic awareness of the use of covered funds. 

5 (4) The website shall provide detailed data on 

6 contracts awarded by the Government that expend 

7 covered funds, including information about the com8 petitiveness of the contracting process, notification of 

9 solicitations for contracts to be awarded, and infor10 mation about the process that was used for the award 

11 of contracts. 

12 (5) The website shall include printable reports on 

13 covered funds obligated by month to each State and 

14 congressional district. 

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

16 public to give feedback on the performance of con17 tracts that expend covered funds. 

18 (7) The website shall be enhanced and updated 

19 as necessary to carry out the purposes of this subtitle. 

20 (d) WAIVER.—The Board may exclude posting con21 tractual or other information on the website on a case-by22 case basis when necessary to protect national security. 

23 SEC. 1520. AUTHORIZATION OF APPROPRIATIONS. 

24 There are authorized to be appropriated such sums as 

25 necessary to carry out this subtitle. 
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1 SEC. 1521. TERMINATION OF THE BOARD. 

2 The Board shall terminate on September 30, 2012. 

3 Subtitle B—Recovery Independent 

4 Advisory Panel 

5 SEC. 1531. ESTABLISHMENT OF RECOVERY INDEPENDENT 

6 ADVISORY PANEL. 

7 (a) ESTABLISHMENT.—There is established the Recov8 ery Independent Advisory Panel. 

9 (b) MEMBERSHIP.—The Panel shall be composed of 5 

10 members who shall be appointed by the President. 

11 (c) QUALIFICATIONS.—Members shall be appointed on 

12 the basis of expertise in economics, public finance, con13 tracting, accounting, or any other relevant field. 

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

15 the date on which all members of the Panel have been ap16 pointed, the Panel shall hold its first meeting. 

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

18 the Chairperson of the Panel. 

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

20 shall constitute a quorum, but a lesser number of members 

21 may hold hearings. 

22 (g) CHAIRPERSON AND VICE CHAIRPERSON.—The 

23 Panel shall select a Chairperson and Vice Chairperson from 

24 among its members. 
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1 SEC. 1532. DUTIES OF THE PANEL. 

2 The Panel shall make recommendations to the Board 

3 on actions the Board could take to prevent fraud, waste, 

4 and abuse relating to covered funds. 

5 SEC. 1533. POWERS OF THE PANEL. 

6 (a) HEARINGS.—The Panel may hold such hearings, 

7 sit and act at such times and places, take such testimony, 

8 and receive such evidence as the Panel considers advisable 

9 to carry out this subtitle. 

10 (b) INFORMATION FROM FEDERAL AGENCIES.—The 

11 Panel may secure directly from any agency such informa12 tion as the Panel considers necessary to carry out this sub13 title. Upon request of the Chairperson of the Panel, the head 

14 of such agency shall furnish such information to the Panel. 

15 (c) POSTAL SERVICES.—The Panel may use the 

16 United States mails in the same manner and under the 

17 same conditions as agencies of the Federal Government. 

18 (d) GIFTS.—The Panel may accept, use, and dispose 

19 of gifts or donations of services or property. 

20 SEC. 1534. PANEL PERSONNEL MATTERS. 

21 (a) COMPENSATION OF MEMBERS.—Each member of 

22 the Panel who is not an officer or employee of the Federal 

23 Government shall be compensated at a rate equal to the 

24 daily equivalent of the annual rate of basic pay prescribed 

25 for level IV of the Executive Schedule under section 5315 

26 of title 5, United States Code, for each day (including travel 
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1 time) during which such member is engaged in the perform2 ance of the duties of the Panel. All members of the Panel 

3 who are officers or employees of the United States shall serve 

4 without compensation in addition to that received for their 

5 services as officers or employees of the United States. 

6 (b) TRAVEL EXPENSES.—The members of the Panel 

7 shall be allowed travel expenses, including per diem in lieu 

8 of subsistence, at rates authorized for employees of agencies 

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

10 Code, while away from their homes or regular places of 

11 business in the performance of services for the Panel. 

12 (c) STAFF.— 

13 (1) IN GENERAL.—The Chairperson of the Panel 

14 may, without regard to the civil service laws and reg15 ulations, appoint and terminate an executive director 

16 and such other additional personnel as may be nec17 essary to enable the Panel to perform its duties. The 

18 employment of an executive director shall be subject 

19 to confirmation by the Panel. 

20 (2) COMPENSATION.—The Chairperson of the 

21 Panel may fix the compensation of the executive di22 rector and other personnel without regard to chapter 

23 51 and subchapter III of chapter 53 of title 5, United 

24 States Code, relating to classification of positions and 

25 General Schedule pay rates, except that the rate of 
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1 pay for the executive director and other personnel 

2 may not exceed the rate payable for level V of the Ex3 ecutive Schedule under section 5316 of such title. 

4 (3) PERSONNEL AS FEDERAL EMPLOYEES.— 

5 (A) IN GENERAL.—The executive director 

6 and any personnel of the Panel who are employ7 ees shall be employees under section 2105 of title 

8 5, United States Code, for purposes of chapters 

9 63, 81, 83, 84, 85, 87, 89, 89A, 89B, and 90 of 

10 that title. 

11 (B) MEMBERS OF PANEL.—Subparagraph 

12 (A) shall not be construed to apply to members 

13 of the Panel. 

14 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any Fed15 eral Government employee may be detailed to the Panel 

16 without reimbursement, and such detail shall be without 

17 interruption or loss of civil service status or privilege. 

18 (e) PROCUREMENT OF TEMPORARY AND INTERMIT19 TENT SERVICES.—The Chairperson of the Panel may pro20 cure temporary and intermittent services under section 

21 3109(b) of title 5, United States Code, at rates for individ22 uals which do not exceed the daily equivalent of the annual 

23 rate of basic pay prescribed for level V of the Executive 

24 Schedule under section 5316 of such title. 
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1 (f) ADMINISTRATIVE SUPPORT.—The General Services 

2 Administration shall provide the Board with administra3 tive support services, including the provision of office space 

4 and facilities. 

5 SEC. 1535. TERMINATION OF THE PANEL. 

6 The Panel shall terminate on September 30, 2012. 

7 SEC. 1536. AUTHORIZATION OF APPROPRIATIONS. 

8 There are authorized to be appropriated such sums as 

9 necessary to carry out this subtitle. 

10 Subtitle C—Reports of the Council 

11 of Economic Advisers 

12 SEC. 1541. REPORTS OF THE COUNCIL OF ECONOMIC ADVIS13 ERS. 

14 (a) IN GENERAL.—In consultation with the Director 

15 of the Office of Management and Budget and the Secretary 

16 of the Treasury, the Chairperson of the Council of Economic 

17 Advisers shall submit to the Committees on Appropriations 

18 of the Senate and House of Representatives quarterly re19 ports based on the reports required under section 1551 that 

20 detail the impact of programs funded through covered funds 

21 on employment, estimated economic growth, and other key 

22 economic indicators. 

23 (b) SUBMISSION OF REPORTS.— 

24 (1) FIRST REPORT.—The first report submitted 

25 under subsection (a) shall be submitted not later than 
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1 45 days after the end of the first full quarter following 

2 the date of enactment of this Act. 

3 (2) LAST REPORT.—The last report required to 

4 be submitted under subsection (a) shall apply to the 

5 quarter in which the Board terminates under section 

6 1521. 

7 Subtitle D—Reports on Use of 

8 Funds 

9 SEC. 1551. REPORTS ON USE OF FUNDS. 

10 (a) SHORT TITLE.—This section may be cited as the 

11 ‘‘Jobs Accountability Act’’. 

12 (b) DEFINITIONS.—In this section: 

13 (1) AGENCY.—The term ‘‘agency’’ has the mean14 ing given under section 551 of title 5, United States 

15 Code. 

16 (2) RECIPIENT.—The term ‘‘recipient’’— 

17 (A) means any entity that receives recovery 

18 funds (including recovery funds received through 

19 grant, loan, or contract) other than an indi20 vidual; and 

21 (B) includes a State that receives recovery 

22 funds. 

23 (3) RECOVERY FUNDS.—The term ‘‘recovery 

24 funds’’ means any funds that are made available— 
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1 (A) from appropriations made under this 

2 Act; and 

3 (B) under any other authorities provided 

4 under this Act. 

5 (c) RECIPIENT REPORTS.—Not later than 10 days 

6 after the end of each calendar quarter, each recipient that 

7 received recovery funds from an agency shall submit a re8 port to that agency that contains— 

9 (1) the total amount of recovery funds received 

10 from that agency; 

11 (2) the amount of recovery funds received that 

12 were expended or obligated to projects or activities; 

13 and 

14 (3) a detailed list of all projects or activities for 

15 which recovery funds were expended or obligated, in16 cluding— 

17 (A) the name of the project or activity; 

18 (B) a description of the project or activity; 

19 (C) an evaluation of the completion status 

20 of the project or activity; and 

21 (D) an analysis of the number of jobs cre22 ated and the number of jobs retained by the 

23 project or activity. 

24 (d) AGENCY REPORTS.—Not later than 30 days after 

25 the end of each calendar quarter, each agency that made 
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1 recovery funds available to any recipient shall make the in2 formation in reports submitted under subsection (c) pub3 licly available by posting the information on a website. 

4 (e) OTHER REPORTS.—The Congressional Budget Of5 fice and the Government Accountability Office shall com6 ment on the information described in subsection (c)(3)(D) 

7 for any reports submitted under subsection (c). Such com8 ments shall be due within 7 days after such reports are sub9 mitted. 

10 TITLE XVI—GENERAL PROVISIONS—THIS ACT 

11 EMERGENCY DESIGNATION

12 SEC. 1601. Each amount in this Act is designated as 

13 an emergency requirement and necessary to meet emergency 

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

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

16 Congress), the concurrent resolutions on the budget for fiscal 

17 years 2008 and 2009. 

18 AVAILABILITY

19 SEC. 1602. No part of any appropriation contained 

20 in this Act shall remain available for obligation beyond the 

21 current fiscal year unless expressly so provided herein. 

22 RELATIONSHIP TO OTHER APPROPRIATIONS

23 SEC. 1603. Each amount appropriated or made avail24 able in this Act is in addition to amounts otherwise appro25 priated for the fiscal year involved. Enactment of this Act 
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1 shall have no effect on the availability of amounts under 

2 the Continuing Appropriations Resolution, 2009 (division 

3 A of Public Law 110–329). 

4 BUY AMERICAN

5 SEC. 1604. USE OF AMERICAN IRON, STEEL, AND

6 MANUFACTURED GOODS. (a) None of the funds appro7 priated or otherwise made available by this Act may be used 

8 for a project for the construction, alteration, maintenance, 

9 or repair of a public building or public work unless all of 

10 the iron, steel, and manufactured goods used in the project 

11 are produced in the United States. 

12 (b) Subsection (a) shall not apply in any case in which 

13 the head of the Federal department or agency involved finds 

14 that— 

15 (1) applying subsection (a) would be inconsistent 

16 with the public interest; 

17 (2) iron, steel, and the relevant manufactured 

18 goods are not produced in the United States if suffi19 cient and reasonably available quantities and of a 

20 satisfactory quality; or 

21 (3) inclusion of iron, steel, and manufactured 

22 goods produced in the United States will increase the 

23 cost of the overall project by more than 25 percent. 

24 (c) If the head of a Federal department or agency de25 termines that it is necessary to waive the application of 
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1 subsection (a) based on a finding under subsection (b), the 

2 head of the department or agency shall publish in the Fed3 eral Register a detailed written jurisdiction as to why the 

4 provision is being waived. 

5 (d) This section shall be applied in a manner con6 sistent with United States obligations under international 

7 agreements. 

8 CERTIFICATION

9 SEC. 1605. With respect to funds in titles I though XVI 

10 of this Act made available to State, or local government 

11 agencies, the Governor, mayor, or other chief executive, as 

12 appropriate, shall certify that the infrastructure investment 

13 has received the full review and vetting required by law and 

14 that the chief executive accepts responsibility that the infra15 structure investment is an appropriate use of taxpayer dol16 lars. A State or local agency may not receive infrastructure 

17 investment funding from funds made available in this Act 

18 unless this certification is made. 

19 ECONOMIC STABILIZATION CONTRACTING

20 SEC. 1606. REFORM OF CONTRACTING PROCEDURES

21 UNDER EESA. Section 107(b) of the Emergency Economic 

22 Stabilization Act of 2008 (12 U.S.C. 5217(b)) is amended 

23 by inserting ‘‘and individuals with disabilities and busi24 nesses owned by individuals with disabilities (for purposes 

25 of this subsection the term ‘individual with disability’ has 
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1 the same meaning as the term ‘handicapped individual’ as 

2 that term is defined in section 3(f) of the Small Business 

3 Act (15 U.S.C. 632(f)),’’ after ‘‘(12 U.S.C. 1441a(r)(4)),’’. 

4 SEC. 1607. FINDINGS.— 

5 (1) The National Environmental Policy Act pro6 tects public health, safety and environmental quality: 

7 by ensuring transparency, accountability and public 

8 involvement in federal actions and in the use of pub9 lic funds; 

10 (2) When President Nixon signed the National 

11 Environmental Policy Act into law on January 1, 

12 1970, he said that the Act provided the ‘‘direction’’ 

13 for the country to ‘‘regain a productive harmony be14 tween man and nature’’; 

15 (3) The National Environmental Policy Act 

16 helps to provide an orderly process for considering 

17 federal actions and funding decisions and prevents li18 gation and delay that would otherwise be inevitable 

19 and existed prior to the establishment of the National 

20 Environmental Policy Act. 

21 (a) Adequate resources within this bill must be devoted 

22 to ensuring that applicable environmental reviews under 

23 the National Environmental Policy Act are completed on 

24 an expeditious basis and that the shortest existing applica-
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1 ble process under the National Environmental Policy Act 

2 shall be utilized. 

3 (b) The President shall report to the Senate Environ4 ment and Public Works Committee and the House Natural 

5 Resources Committee every 90 days following the date of 

6 enactment until September 30, 2011 on the status and 

7 progress of projects and activities funded by this Act with 

8 respect to compliance with National Environmental Policy 

9 Act requirements and documentation. 

10 PROHIBITION ON NO-BID CONTRACTS AND EARMARKS

11 SEC. 1608. (a) Notwithstanding any other provision 

12 of this Act, none of the funds appropriated or otherwise 

13 made available by this Act may be used to make any pay14 ment in connection with a contract unless the contract is 

15 awarded using competitive procedures in accordance with 

16 the requirements of section 303 of the Federal Property and 

17 Administrative Services Act of 1949 (41 U.S.C. 253), sec18 tion 2304 of title 10, United States Code, and the Federal 

19 Acquisition Regulation. 

20 (b) Notwithstanding any other provision of this Act, 

21 none of the funds appropriated or otherwise made available 

22 by this Act may be awarded by grant or cooperative agree23 ment unless the process used to award such grant or cooper24 ative agreement uses competitive procedures to select the 

25 grantee or award recipient. 

26 SEC. 1609. LIMIT ON FUNDS. 
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1 None of the amounts appropriated or otherwise made 

2 available by this Act may be used for any casino or other 

3 gambling establishment, aquarium, zoo, golf course, swim4 ming pool, stadium, community park, museum, theater, art 

5 center, and highway beautification project. 

6 SEC. 1610. HIRING AMERICAN WORKERS IN COMPANIES RE7 CEIVING TARP FUNDING. 

8 (a) SHORT TITLE.—This section may be cited as the 

9 ‘‘Employ American Workers Act’’. 

10 (b) PROHIBITION.— 

11 (1) IN GENERAL.—Notwithstanding any other 

12 provision of law, it shall be unlawful for any recipi13 ent of funding under title I of the Emergency Eco14 nomic Stabilization Act of 2008 (Public Law 110– 

15 343) or section 13 of the Federal Reserve Act (12 

16 U.S.C. 342 et seq.) to hire any nonimmigrant de17 scribed in section 101(a)(15)(h)(i)(b) of the Immigra18 tion and Nationality Act (8 U.S.C. 

19 1101(a)(15)(h)(i)(b)) unless the recipient is in com20 pliance with the requirements for an H–1B dependent 

21 employer (as defined in section 212(n)(3) of such Act 

22 (8 U.S.C. 1182(n)(3))), except that the second sen23 tence of section 212(n)(1)(E)(ii) of such Act shall not 

24 apply. 
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1 (2) DEFINED TERM.—In this subsection, the 

2 term ‘‘hire’’ means to permit a new employee to com3 mence a period of employment. 

4 (c) SUNSET PROVISION.—This section shall be effective 

5 during the 2-year period beginning on the date of the enact6 ment of this Act. 

7 DIVISION B—TAX, UNEMPLOY8 MENT, HEALTH, STATE FIS9 CAL RELIEF, AND OTHER PRO10 VISIONS 

11 TITLE I—TAX PROVISIONS 

12 SEC. 1000. SHORT TITLE, ETC. 

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

14 ‘‘American Recovery and Reinvestment Tax Act of 2009’’. 

15 (b) REFERENCE.—Except as otherwise expressly pro16 vided, whenever in this title an amendment or repeal is ex17 pressed in terms of an amendment to, or repeal of, a section 

18 or other provision, the reference shall be considered to be 

19 made to a section or other provision of the Internal Revenue 

20 Code of 1986. 

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

22 this title is as follows: 

TITLE I—TAX PROVISIONS 

Sec. 1000. Short title, etc. 
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Subtitle A—Tax Relief for Individuals and Families 

PART I—GENERAL TAX RELIEF

Sec. 1001. Making work pay credit. 

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

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

Sec. 1004. American opportunity tax credit. 

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

Sec. 1006. Credit for certain home purchases. 

Sec. 1007. Suspension of tax on portion of unemployment compensation. 

Sec. 1008. Above-the-line deduction for interest on indebtedness with respect to the 

purchase of certain motor vehicles. 

Sec. 1009. Above-the-line 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. 

PART II—INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY

BONDS AND QUALIFIED ENERGY CONSERVATION BONDS

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

Sec. 1112. Increased limitation on issuance of qualified energy conservation 

bonds. 

PART III—ENERGY CONSERVATION INCENTIVES

Sec. 1121. Extension and modification of credit for nonbusiness energy property. 

Sec. 1122. Modification of credit for residential energy efficient property. 

Sec. 1123. Temporary increase in credit for alternative fuel vehicle refueling 

property. 

PART IV—ENERGY RESEARCH INCENTIVES

Sec. 1131. Increased research credit for energy research. 

PART V—MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION

Sec. 1141. Application of monitoring requirements to carbon dioxide used as a 

tertiary injectant. 

PART VI—PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES

Sec. 1151. Modification of credit for qualified plug-in electric motor vehicles. 
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Subtitle C—Tax Incentives for Business 

PART I—TEMPORARY INVESTMENT INCENTIVES

Sec. 1201. Special allowance for certain property acquired during 2009. 

Sec. 1202. Temporary increase in limitations on expensing of certain depreciable 

business assets. 

PART II—5-YEAR CARRYBACK OF OPERATING LOSSES

Sec. 1211. 5-year carryback of operating losses. 

Sec. 1212. Exception for TARP recipients. 

PART III—INCENTIVES FOR NEW JOBS

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

PART IV—CANCELLATION OF INDEBTEDNESS

Sec. 1231. Deferral and ratable inclusion of income arising from indebtedness 

discharged by the repurchase of a debt instrument. 

PART V—QUALIFIED SMALL BUSINESS STOCK

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

2010. 

PART VI—PARITY FOR TRANSPORTATION FRINGE BENEFITS

Sec. 1251. Increased exclusion amount for commuter transit benefits and transit 

passes. 

PART VII—S CORPORATIONS

Sec. 1261. Temporary reduction in recognition period for built-in gains tax. 

PART VIII—BROADBAND INCENTIVES

Sec. 1271. Broadband Internet access tax credit. 

PART IX—CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON

CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE

Sec. 1281. Clarification of regulations related to limitations on certain built-in 

losses following an ownership change. 

Subtitle D—Manufacturing Recovery Provisions 

Sec. 1301. Temporary expansion of availability of industrial development bonds 

to facilities manufacturing intangible property. 

Sec. 1302. Credit for investment in advanced energy facilities. 

Subtitle E—Economic Recovery Tools 

Sec. 1401. Recovery zone bonds. 

Sec. 1402. Tribal economic development bonds. 

Sec. 1403. Modifications to new markets tax credit. 
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Subtitle F—Infrastructure Financing Tools 

PART I—IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS

Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of financial institutions. 

Sec. 1502. Modification of small issuer exception to tax-exempt interest expense 

allocation rules for financial institutions. 

Sec. 1503. Temporary modification of alternative minimum tax limitations on 

tax-exempt bonds. 

Sec. 1504. Modification to high speed intercity rail facility bonds. 

PART II—DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT

CONTRACTORS

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

PART III—TAX CREDIT BONDS FOR SCHOOLS

Sec. 1521. Qualified school construction bonds. 

Sec. 1522. Extension and expansion of qualified zone academy bonds. 

PART IV—BUILD AMERICA BONDS

Sec. 1531. Build America bonds. 

Subtitle G—Economic Recovery Payments to Certain Individuals 

Sec. 1601. Economic recovery payment to recipients of Social Security, supplemental security income, railroad retirement benefits, and veterans disability compensation or pension benefits. 

Subtitle H—Trade Adjustment Assistance 

Sec. 1701. Temporary extension of Trade Adjustment Assistance program. 

Subtitle I—Prohibition on Collection of Certain Payments Made Under the 

Continued Dumping and Subsidy Offset Act of 2000 

Sec. 1801. Prohibition on collection of certain payments made under the Continued Dumping and Subsidy Offset Act of 2000. 

Subtitle J—Other Provisions 

Sec. 1901. Application of certain labor standards to projects financed with certain tax-favored bonds. 

Sec. 1902. Increase in public debt limit. 

Sec. 1903. Election to accelerate the low-income housing tax credit. 
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1 Subtitle A—Tax Relief for 

2 Individuals and Families 

3 PART I—GENERAL TAX RELIEF 

4 SEC. 1001. MAKING WORK PAY CREDIT. 

5 (a) IN GENERAL.—Subpart C of part IV of subchapter 

6 A of chapter 1 is amended by inserting after section 36 the 

7 following new section: 

8 ‘‘SEC. 36A. MAKING WORK PAY CREDIT. 

9 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eligi10 ble individual, there shall be allowed as a credit against 

11 the tax imposed by this subtitle for the taxable year an 

12 amount equal to the lesser of— 

13 ‘‘(1) 6.2 percent of earned income of the tax14 payer, or 

15 ‘‘(2) $500 ($1,000 in the case of a joint return). 

16 ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED

17 GROSS INCOME.— 

18 ‘‘(1) IN GENERAL.—The amount allowable as a 

19 credit under subsection (a) (determined without re20 gard to this paragraph and subsection (c)) for the 

21 taxable year shall be reduced (but not below zero) by 

22 4 percent of so much of the taxpayer’s modified ad23 justed gross income as exceeds $70,000 ($140,000 in 

24 the case of a joint return). 
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1 ‘‘(2) MODIFIED ADJUSTED GROSS INCOME.—For 

2 purposes of subparagraph (A), the term ‘modified ad3 justed gross income’ means the adjusted gross income 

4 of the taxpayer for the taxable year increased by any 

5 amount excluded from gross income under section 

6 911, 931, or 933. 

7 ‘‘(c) REDUCTION FOR CERTAIN OTHER PAYMENTS.— 

8 The credit allowed under subsection (a) for any taxable year 

9 shall be reduced by the amount of any payments received 

10 by the taxpayer during such taxable year under section 

11 1601 of the American Recovery and Reinvestment Tax Act 

12 of 2009. 

13 ‘‘(d) DEFINITIONS.—For purposes of this section— 

14 ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

15 individual’ means any individual other than— 

16 ‘‘(A) any nonresident alien individual, 

17 ‘‘(B) any individual with respect to whom 

18 a deduction under section 151 is allowable to an19 other taxpayer for a taxable year beginning in 

20 the calendar year in which the individual’s tax21 able year begins, and 

22 ‘‘(C) an estate or trust. 

23 Such term shall not include any individual unless the 

24 requirements of section 32(c)(1)(E) are met with re25 spect to such individual. 
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1 ‘‘(2) EARNED INCOME.—The term ‘earned in2 come’ has the meaning given such term by section 

3 32(c)(2), except that such term shall not include net 

4 earnings from self-employment which are not taken 

5 into account in computing taxable income. For pur6 poses of the preceding sentence, any amount excluded 

7 from gross income by reason of section 112 shall be 

8 treated as earned income which is taken into account 

9 in computing taxable income for the taxable year. 

10 ‘‘(e) TERMINATION.—This section shall not apply to 

11 taxable years beginning after December 31, 2010.’’. 

12 (b) TREATMENT OF POSSESSIONS.— 

13 (1) PAYMENTS TO POSSESSIONS.— 

14 (A) MIRROR CODE POSSESSION.—The Sec15 retary of the Treasury shall pay to each posses16 sion of the United States with a mirror code tax 

17 system amounts equal to the loss to that posses18 sion by reason of the amendments made by this 

19 section with respect to taxable years beginning 

20 in 2009 and 2010. Such amounts shall be deter21 mined by the Secretary of the Treasury based on 

22 information provided by the government of the 

23 respective possession. 

24 (B) OTHER POSSESSIONS.—The Secretary 

25 of the Treasury shall pay to each possession of 
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1 the United States which does not have a mirror 

2 code tax system amounts estimated by the Sec3 retary of the Treasury as being equal to the ag4 gregate benefits that would have been provided to 

5 residents of such possession by reason of the 

6 amendments made by this section for taxable 

7 years beginning in 2009 and 2010 if a mirror 

8 code tax system had been in effect in such posses9 sion. The preceding sentence shall not apply with 

10 respect to any possession of the United States 

11 unless such possession has a plan, which has 

12 been approved by the Secretary of the Treasury, 

13 under which such possession will promptly dis14 tribute such payments to the residents of such 

15 possession. 

16 (2) COORDINATION WITH CREDIT ALLOWED

17 AGAINST UNITED STATES INCOME TAXES.—No credit 

18 shall be allowed against United States income taxes 

19 for any taxable year under section 36A of the Internal 

20 Revenue Code of 1986 (as added by this section) to 

21 any person— 

22 (A) to whom a credit is allowed against 

23 taxes imposed by the possession by reason of the 

24 amendments made by this section for such tax25 able year, or 
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1 (B) who is eligible for a payment under a 

2 plan described in paragraph (1)(B) with respect 

3 to such taxable year. 

4 (3) DEFINITIONS AND SPECIAL RULES.— 

5 (A) POSSESSION OF THE UNITED STATES.— 

6 For purposes of this subsection, the term ‘‘posses7 sion of the United States’’ includes the Common8 wealth of Puerto Rico and the Commonwealth of 

9 the Northern Mariana Islands. 

10 (B) MIRROR CODE TAX SYSTEM.—For pur11 poses of this subsection, the term ‘‘mirror code 

12 tax system’’ means, with respect to any posses13 sion of the United States, the income tax system 

14 of such possession if the income tax liability of 

15 the residents of such possession under such sys16 tem is determined by reference to the income tax 

17 laws of the United States as if such possession 

18 were the United States. 

19 (C) TREATMENT OF PAYMENTS.—For pur20 poses of section 1324(b)(2) of title 31, United 

21 States Code, the payments under this subsection 

22 shall be treated in the same manner as a refund 

23 due from the credit allowed under section 36A of 

24 the Internal Revenue Code of 1986 (as added by 

25 this section). 
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1 (c) REFUNDS DISREGARDED IN THE ADMINISTRATION

2 OF FEDERAL PROGRAMS AND FEDERALLY ASSISTED PRO3 GRAMS.—Any credit or refund allowed or made to any indi4 vidual by reason of section 36A of the Internal Revenue 

5 Code of 1986 (as added by this section) or by reason of sub6 section (b) of this section shall not be taken into account 

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

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

9 purposes of determining the eligibility of such individual 

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

11 amount or extent of benefits or assistance, under any Fed12 eral program or under any State or local program financed 

13 in whole or in part with Federal funds. 

14 (d) AUTHORITY RELATING TO CLERICAL ERRORS.— 

15 Section 6213(g)(2) is amended by striking ‘‘and’’ at the end 

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

17 of subparagraph (M) and inserting ‘‘, and’’, and by adding 

18 at the end the following new subparagraph: 

19 ‘‘(N) an omission of the reduction required 

20 under section 36A(c) with respect to the credit 

21 allowed under section 36A or an omission of the 

22 correct TIN required under section 36A(d)(1).’’. 

23 (e) CONFORMING AMENDMENTS.— 

24 (1) Section 6211(b)(4)(A) is amended by insert25 ing ‘‘36A,’’ after ‘‘36,’’. 
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1 (2) Section 1324(b)(2) of title 31, United States 

2 Code, is amended by inserting ‘‘36A,’’ after ‘‘36,’’. 

3 (3) The table of sections for subpart C of part IV 

4 of subchapter A of chapter 1 is amended by inserting 

5 after the item relating to section 36 the following new 

6 item: 

‘‘Sec. 36A. Making work pay credit.’’. 

7 (f) EFFECTIVE DATE.—This section, and the amend8 ments made by this section, shall apply to taxable years 

9 beginning after December 31, 2008. 

10 SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX 

11 CREDIT. 

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

13 amended by adding at the end the following new paragraph: 

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

15 case of any taxable year beginning in 2009 or 2010— 

16 ‘‘(A) INCREASED CREDIT PERCENTAGE FOR

17 3 OR MORE QUALIFYING CHILDREN.—In the case 

18 of a taxpayer with 3 or more qualifying chil19 dren, the credit percentage is 45 percent. 

20 ‘‘(B) REDUCTION OF MARRIAGE PENALTY.— 

21 ‘‘(i) IN GENERAL.—The dollar amount 

22 in effect under paragraph (2)(B) shall be 

23 $5,000. 

24 ‘‘(ii) INFLATION ADJUSTMENT.—In the 

25 case of any taxable year beginning in 2010, 
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1 the $5,000 amount in clause (i) shall be in2 creased by an amount equal to— 

3 ‘‘(I) such dollar amount, multi4 plied by 

5 ‘‘(II) the cost of living adjustment 

6 determined under section 1(f)(3) for 

7 the calendar year in which the taxable 

8 year begins determined by substituting 

9 ‘calendar year 2008’ for ‘calendar year 

10 1992’ in subparagraph (B) thereof. 

11 ‘‘(iii) ROUNDING.—Subparagraph (A) 

12 of subsection (j)(2) shall apply after taking 

13 into account any increase under clause 

14 (ii).’’. 

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

16 section shall apply to taxable years beginning after Decem17 ber 31, 2008. 

18 SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE POR19 TION OF CHILD CREDIT. 

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

21 amended to read as follows: 

22 ‘‘(4) SPECIAL RULE FOR 2009 AND 2010.—Not23 withstanding paragraph (3), in the case of any tax24 able year beginning in 2009 or 2010, the dollar 
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1 amount in effect for such taxable year under para2 graph (1)(B)(i) shall be $8,100.’’. 

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

4 section shall apply to taxable years beginning after Decem5 ber 31, 2008. 

6 SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT. 

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

8 scholarship credit) is amended by redesignating subsection 

9 (i) as subsection (j) and by inserting after subsection (h) 

10 the following new subsection: 

11 ‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.—In the 

12 case of any taxable year beginning in 2009 or 2010— 

13 ‘‘(1) INCREASE IN CREDIT.—The Hope Scholar14 ship Credit shall be an amount equal to the sum of— 

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

16 tuition and related expenses paid by the tax17 payer during the taxable year (for education fur18 nished to the eligible student during any aca19 demic period beginning in such taxable year) as 

20 does not exceed $2,000, plus 

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

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

23 ‘‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF

24 POST-SECONDARY EDUCATION.—Subparagraphs (A) 
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1 and (C) of subsection (b)(2) shall be applied by sub2 stituting ‘4’ for ‘2’. 

3 ‘‘(3) QUALIFIED TUITION AND RELATED EX4 PENSES TO INCLUDE REQUIRED COURSE MATE5 RIALS.—Subsection (f)(1)(A) shall be applied by sub6 stituting ‘tuition, fees, and course materials’ for ‘tui7 tion and fees’. 

8 ‘‘(4) INCREASE IN AGI LIMITS FOR HOPE SCHOL9 ARSHIP CREDIT.—In lieu of applying subsection (d) 

10 with respect to the Hope Scholarship Credit, such 

11 credit (determined without regard to this paragraph) 

12 shall be reduced (but not below zero) by the amount 

13 which bears the same ratio to such credit (as so deter14 mined) as— 

15 ‘‘(A) the excess of— 

16 ‘‘(i) the taxpayer’s modified adjusted 

17 gross income (as defined in subsection 

18 (d)(3)) for such taxable year, over 

19 ‘‘(ii) $80,000 ($160,000 in the case of 

20 a joint return), bears to 

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

22 return). 

23 ‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE

24 MINIMUM TAX.—In the case of a taxable year to which 

25 section 26(a)(2) does not apply, so much of the credit 
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1 allowed under subsection (a) as is attributable to the 

2 Hope Scholarship Credit shall not exceed the excess 

3 of— 

4 ‘‘(A) the sum of the regular tax liability (as 

5 defined in section 26(b)) plus the tax imposed by 

6 section 55, over 

7 ‘‘(B) the sum of the credits allowable under 

8 this subpart (other than this subsection and sec9 tions 23, 25D, and 30D) and section 27 for the 

10 taxable year. 

11 Any reference in this section or section 24, 25, 26, 

12 25B, 904, or 1400C to a credit allowable under this 

13 subsection shall be treated as a reference to so much 

14 of the credit allowable under subsection (a) as is at15 tributable to the Hope Scholarship Credit. 

16 ‘‘(6) PORTION OF CREDIT MADE REFUNDABLE.— 

17 30 percent of so much of the credit allowed under sub18 section (a) as is attributable to the Hope Scholarship 

19 Credit (determined after application of paragraph (4) 

20 and without regard to this paragraph and section 

21 26(a)(2) or paragraph (5), as the case may be) shall 

22 be treated as a credit allowable under subpart C (and 

23 not allowed under subsection (a)). The preceding sen24 tence shall not apply to any taxpayer for any taxable 
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1 year if such taxpayer is a child to whom subsection 

2 (g) of section 1 applies for such taxable year. 

3 ‘‘(7) COORDINATION WITH MIDWESTERN DIS4 ASTER AREA BENEFITS.—In the case of a taxpayer 

5 with respect to whom section 702(a)(1)(B) of the 

6 Heartland Disaster Tax Relief Act of 2008 applies for 

7 any taxable year, such taxpayer may elect to waive 

8 the application of this subsection to such taxpayer for 

9 such taxable year.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) Section 24(b)(3)(B) is amended by inserting 

12 ‘‘25A(i),’’ after ‘‘23,’’. 

13 (2) Section 25(e)(1)(C)(ii) is amended by insert14 ing ‘‘25A(i),’’ after ‘‘24,’’. 

15 (3) Section 26(a)(1) is amended by inserting 

16 ‘‘25A(i),’’ after ‘‘24,’’. 

17 (4) Section 25B(g)(2) is amended by inserting 

18 ‘‘25A(i),’’ after ‘‘23,’’. 

19 (5) Section 904(i) is amended by inserting 

20 ‘‘25A(i),’’ after ‘‘24,’’. 

21 (6) Section 1400C(d)(2) is amended by inserting 

22 ‘‘25A(i),’’ after ‘‘24,’’. 

23 (7) Section 1324(b)(2) of title 31, United States 

24 Code, is amended by inserting ‘‘25A,’’ before ‘‘35’’. 
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1 (c) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to taxable years beginning after Decem3 ber 31, 2008. 

4 (d) APPLICATION OF EGTRRA SUNSET.—The amend5 ment made by subsection (b)(1) shall be subject to title IX 

6 of the Economic Growth and Tax Relief Reconciliation Act 

7 of 2001 in the same manner as the provision of such Act 

8 to which such amendment relates. 

9 (e) TREASURY STUDIES REGARDING EDUCATION IN10 CENTIVES.— 

11 (1) STUDY REGARDING COORDINATION WITH

12 NON-TAX EDUCATIONAL INCENTIVES.—The Secretary 

13 of the Treasury, or the Secretary’s delegate, shall 

14 study how to coordinate the credit allowed under sec15 tion 25A of the Internal Revenue Code of 1986 with 

16 the Federal Pell Grant program under section 401 of 

17 the Higher Education Act of 1965. 

18 (2) STUDY REGARDING IMPOSITION OF COMMU19 NITY SERVICE REQUIREMENTS.—The Secretary of the 

20 Treasury, or the Secretary’s delegate, shall study the 

21 feasibility of requiring students to perform commu22 nity service as a condition of taking their tuition and 

23 related expenses into account under section 25A of the 

24 Internal Revenue Code of 1986. 
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1 (3) REPORT.—Not later than 1 year after the 

2 date of the enactment of this Act, the Secretary of the 

3 Treasury, or the Secretary’s delegate, shall report to 

4 Congress on the results of the studies conducted under 

5 this paragraph. 

6 SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT AL7 LOWED AS A QUALIFIED HIGHER EDUCATION 

8 EXPENSE FOR SECTION 529 ACCOUNTS IN 

9 2009 AND 2010. 

10 (a) IN GENERAL.—Section 529(e)(3)(A) is amended by 

11 striking ‘‘and’’ at the end of clause (i), by striking the pe12 riod at the end of clause (ii), and by adding at the end 

13 the following: 

14 ‘‘(iii) expenses paid or incurred in 

15 2009 or 2010 for the purchase of any com16 puter technology or equipment (as defined 

17 in section 170(e)(6)(F)(i)) or Internet access 

18 and related services, if such technology, 

19 equipment, or services are to be used by the 

20 beneficiary and the beneficiary’s family 

21 during any of the years the beneficiary is 

22 enrolled at an eligible educational institu23 tion. 

24 Clause (iii) shall not include expenses for com25 puter software designed for sports, games, or hob-
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1 bies unless the software is predominantly edu2 cational in nature.’’. 

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

4 section shall apply to expenses paid or incurred after De5 cember 31, 2008. 

6 SEC. 1006. CREDIT FOR CERTAIN HOME PURCHASES. 

7 (a) ALLOWANCE OF CREDIT.—Subpart A of part IV 

8 of subchapter A of chapter 1 is amended by inserting after 

9 section 25D the following new section: 

10 ‘‘SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES. 

11 ‘‘(a) ALLOWANCE OF CREDIT.— 

12 ‘‘(1) IN GENERAL.—In the case of an individual 

13 who is a purchaser of a principal residence during 

14 the taxable year, there shall be allowed as a credit 

15 against the tax imposed by this chapter an amount 

16 equal to 10 percent of the purchase price of the resi17 dence. 

18 ‘‘(2) DOLLAR LIMITATION.—The amount of the 

19 credit allowed under paragraph (1) shall not exceed 

20 $15,000. 

21 ‘‘(3) ALLOCATION OF CREDIT AMOUNT.—At the 

22 election of the taxpayer, the amount of the credit al23 lowed under paragraph (1) (after application of 

24 paragraph (2)) may be equally divided among the 2 
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1 taxable years beginning with the taxable year in 

2 which the purchase of the principal residence is made. 

3 ‘‘(b) LIMITATIONS.— 

4 ‘‘(1) DATE OF PURCHASE.—The credit allowed 

5 under subsection (a) shall be allowed only with re6 spect to purchases made— 

7 ‘‘(A) after the date of the enactment of the 

8 American Recovery and Reinvestment Tax Act of 

9 2009, and 

10 ‘‘(B) on or before the date that is 1 year 

11 after such date of enactment. 

12 ‘‘(2) LIMITATION BASED ON AMOUNT OF TAX.— 

13 In the case of a taxable year to which section 26(a)(2) 

14 does not apply, the credit allowed under subsection 

15 (a) for any taxable year shall not exceed the excess 

16 of— 

17 ‘‘(A) the sum of the regular tax liability (as 

18 defined in section 26(b)) plus the tax imposed by 

19 section 55, over 

20 ‘‘(B) the sum of the credits allowable under 

21 this subpart (other than this section) for the tax22 able year. 

23 ‘‘(3) ONE-TIME ONLY.— 

24 ‘‘(A) IN GENERAL.—If a credit is allowed 

25 under this section in the case of any individual 
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1 (and such individual’s spouse, if married) with 

2 respect to the purchase of any principal resi3 dence, no credit shall be allowed under this sec4 tion in any taxable year with respect to the pur5 chase of any other principal residence by such 

6 individual or a spouse of such individual. 

7 ‘‘(B) JOINT PURCHASE.—In the case of a 

8 purchase of a principal residence by 2 or more 

9 unmarried individuals or by 2 married individ10 uals filing separately, no credit shall be allowed 

11 under this section if a credit under this section 

12 has been allowed to any of such individuals in 

13 any taxable year with respect to the purchase of 

14 any other principal residence. 

15 ‘‘(c) PRINCIPAL RESIDENCE.—For purposes of this sec16 tion, the term ‘principal residence’ has the same meaning 

17 as when used in section 121. 

18 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No credit shall 

19 be allowed under this section for any purchase for which 

20 a credit is allowed under section 36 or section 1400C. 

21 ‘‘(e) SPECIAL RULES.— 

22 ‘‘(1) JOINT PURCHASE.— 

23 ‘‘(A) MARRIED INDIVIDUALS FILING SEPA24 RATELY.—In the case of 2 married individuals 

25 filing separately, subsection (a) shall be applied 
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1 to each such individual by substituting ‘$7,500’ 

2 for ‘$15,000’ in subsection (a)(1). 

3 ‘‘(B) UNMARRIED INDIVIDUALS.—If 2 or 

4 more individuals who are not married purchase 

5 a principal residence, the amount of the credit 

6 allowed under subsection (a) shall be allocated 

7 among such individuals in such manner as the 

8 Secretary may prescribe, except that the total 

9 amount of the credits allowed to all such individ10 uals shall not exceed $15,000. 

11 ‘‘(2) PURCHASE.—In defining the purchase of a 

12 principal residence, rules similar to the rules of para13 graphs (2) and (3) of section 1400C(e) (as in effect 

14 on the date of the enactment of this section) shall 

15 apply. 

16 ‘‘(3) REPORTING REQUIREMENT.—Rules similar 

17 to the rules of section 1400C(f) (as so in effect) shall 

18 apply. 

19 ‘‘(f) RECAPTURE OF CREDIT IN THE CASE OF CERTAIN

20 DISPOSITIONS.— 

21 ‘‘(1) IN GENERAL.—In the event that a tax22 payer— 

23 ‘‘(A) disposes of the principal residence with 

24 respect to which a credit was allowed under sub25 section (a), or 
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1 ‘‘(B) fails to occupy such residence as the 

2 taxpayer’s principal residence, 

3 at any time within 24 months after the date on which 

4 the taxpayer purchased such residence, then the tax 

5 imposed by this chapter for the taxable year during 

6 which such disposition occurred or in which the tax7 payer failed to occupy the residence as a principal 

8 residence shall be increased by the amount of such 

9 credit. 

10 ‘‘(2) EXCEPTIONS.— 

11 ‘‘(A) DEATH OF TAXPAYER.—Paragraph (1) 

12 shall not apply to any taxable year ending after 

13 the date of the taxpayer’s death. 

14 ‘‘(B) INVOLUNTARY CONVERSION.—Para15 graph (1) shall not apply in the case of a resi16 dence which is compulsorily or involuntarily 

17 converted (within the meaning of section 

18 1033(a)) if the taxpayer acquires a new prin19 cipal residence within the 2-year period begin20 ning on the date of the disposition or cessation 

21 referred to in such paragraph. Paragraph (1) 

22 shall apply to such new principal residence dur23 ing the remainder of the 24-month period de24 scribed in such paragraph as if such new prin25 cipal residence were the converted residence. 
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1 ‘‘(C) TRANSFERS BETWEEN SPOUSES OR IN2 CIDENT TO DIVORCE.—In the case of a transfer 

3 of a residence to which section 1041(a) applies— 

4 ‘‘(i) paragraph (1) shall not apply to 

5 such transfer, and 

6 ‘‘(ii) in the case of taxable years end7 ing after such transfer, paragraph (1) shall 

8 apply to the transferee in the same manner 

9 as if such transferee were the transferor 

10 (and shall not apply to the transferor). 

11 ‘‘(D) RELOCATION OF MEMBERS OF THE

12 ARMED FORCES.—Paragraph (1) shall not apply 

13 in the case of a member of the Armed Forces of 

14 the United States on active duty who moves pur15 suant to a military order and incident to a per16 manent change of station. 

17 ‘‘(3) JOINT RETURNS.—In the case of a credit al18 lowed under subsection (a) with respect to a joint re19 turn, half of such credit shall be treated as having 

20 been allowed to each individual filing such return for 

21 purposes of this subsection. 

22 ‘‘(4) RETURN REQUIREMENT.—If the tax im23 posed by this chapter for the taxable year is increased 

24 under this subsection, the taxpayer shall, notwith-
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1 standing section 6012, be required to file a return 

2 with respect to the taxes imposed under this subtitle. 

3 ‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub4 title, if a credit is allowed under this section with respect 

5 to the purchase of any residence, the basis of such residence 

6 shall be reduced by the amount of the credit so allowed. 

7 ‘‘(h) ELECTION TO TREAT PURCHASE IN PRIOR

8 YEAR.—In the case of a purchase of a principal residence 

9 during the period described in subsection (b)(1), a taxpayer 

10 may elect to treat such purchase as made on December 31, 

11 2008, for purposes of this section.’’. 

12 (b) CLERICAL AMENDMENT.—The table of sections for 

13 subpart A of part IV of subchapter A of chapter 1 is amend14 ed by inserting after the item relating to section 25D the 

15 following new item: 

‘‘Sec. 25E. Credit for certain home purchases.’’. 

16 (c) SUNSET OF CURRENT FIRST-TIME HOMEBUYER

17 CREDIT.— 

18 (1) IN GENERAL.—Subsection (h) of section 36 is 

19 amended by striking ‘‘July 1, 2009’’ and inserting 

20 ‘‘the date of the enactment of the American Recovery 

21 and Reinvestment Tax Act of 2009’’. 

22 (2) ELECTION TO TREAT PURCHASE IN PRIOR

23 YEAR.—Subsection (g) of section 36 is amended by 

24 striking ‘‘July 1, 2009’’ and inserting ‘‘the date of the 
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1 enactment of the American Recovery and Reinvest2 ment Tax Act of 2009’’. 

3 (d) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply to purchases after the date of the enact5 ment of this Act. 

6 SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEM7 PLOYMENT COMPENSATION. 

8 (a) IN GENERAL.—Section 85 of the Internal Revenue 

9 Code of 1986 (relating to unemployment compensation) is 

10 amended by adding at the end the following new subsection: 

11 ‘‘(c) SPECIAL RULE FOR 2009.—In the case of any 

12 taxable year beginning in 2009, gross income shall not in13 clude so much of the unemployment compensation received 

14 by an individual as does not exceed $2,400.’’. 

15 (b) EFFECTIVE DATE.—The amendment made by this 

16 section shall apply to taxable years beginning after Decem17 ber 31, 2008. 

18 SEC. 1008. ABOVE-THE-LINE DEDUCTION FOR INTEREST ON 

19 INDEBTEDNESS WITH RESPECT TO THE PUR20 CHASE OF CERTAIN MOTOR VEHICLES. 

21 (a) IN GENERAL.—Paragraph (2) of section 163(h) of 

22 the Internal Revenue Code of 1986 is amended— 

23 (1) by striking ‘‘and’’ at the end of subpara24 graph (E), 
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1 (2) by striking the period at the end of subpara2 graph (F) and inserting ‘‘, and’’, and 

3 (3) by adding at the end the following new sub4 paragraph: 

5 ‘‘(G) any qualified motor vehicle interest 

6 (within the meaning of paragraph (5)).’’. 

7 (b) QUALIFIED MOTOR VEHICLE INTEREST.—Section 

8 163(h) of the Internal Revenue Code of 1986 is amended 

9 by adding at the end the following new paragraph: 

10 ‘‘(5) QUALIFIED MOTOR VEHICLE INTEREST.— 

11 For purposes of this subsection— 

12 ‘‘(A) IN GENERAL.—The term ‘qualified 

13 motor vehicle interest’ means any interest which 

14 is paid or accrued during the taxable year on 

15 any indebtedness which— 

16 ‘‘(i) is incurred after November 12, 

17 2008, and before January 1, 2010, in ac18 quiring any qualified motor vehicle of the 

19 taxpayer, and 

20 ‘‘(ii) is secured by such qualified motor 

21 vehicle. 

22 Such term also includes any indebtedness secured 

23 by such qualified motor vehicle resulting from 

24 the refinancing of indebtedness meeting the re25 quirements of the preceding sentence (or this sen-
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1 tence); but only to the extent the amount of the 

2 indebtedness resulting from such refinancing does 

3 not exceed the amount of the refinanced indebted4 ness. 

5 ‘‘(B) DOLLAR LIMITATION.—The aggregate 

6 amount of indebtedness treated as described in 

7 subparagraph (A) for any period shall not exceed 

8 $49,500 ($24,750 in the case of a separate return 

9 by a married individual). 

10 ‘‘(C) INCOME LIMITATION.—The amount 

11 otherwise treated as interest under subparagraph 

12 (A) for any taxable year (after the application of 

13 subparagraph (B)) shall be reduced (but not 

14 below zero) by the amount which bears the same 

15 ratio to the amount which is so treated as— 

16 ‘‘(i) the excess (if any) of— 

17 ‘‘(I) the taxpayer’s modified ad18 justed gross income for such taxable 

19 year, over 

20 ‘‘(II) $125,000 ($250,000 in the 

21 case of a joint return), bears to 

22 ‘‘(ii) $10,000. 

23 For purposes of the preceding sentence, the term 

24 ‘modified adjusted gross income’ means the ad25 justed gross income of the taxpayer for the tax-
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1 able year increased by any amount excluded 

2 from gross income under section 911, 931, or 

3 933. 

4 ‘‘(D) QUALIFIED MOTOR VEHICLE.—The 

5 term ‘qualified motor vehicle’ means a passenger 

6 automobile (within the meaning of section 

7 30B(h)(3)) or a light truck (within the meaning 

8 of such section)— 

9 ‘‘(i) which is acquired for use by the 

10 taxpayer and not for resale after November 

11 12, 2008, and before January 1, 2010, 

12 ‘‘(ii) the original use of which com13 mences with the taxpayer, and 

14 ‘‘(iii) which has a gross vehicle weight 

15 rating of not more than 8,500 pounds.’’. 

16 (c) DEDUCTION ALLOWED ABOVE-THE-LINE.—Section 

17 62(a) of the Internal Revenue Code of 1986 is amended by 

18 inserting after paragraph (21) the following new para19 graph: 

20 ‘‘(22) QUALIFIED MOTOR VEHICLE INTEREST.— 

21 The deduction allowed under section 163 by reason of 

22 subsection (h)(2)(G) thereof.’’. 

23 (d) REPORTING OF QUALIFIED MOTOR VEHICLE IN24 TEREST.— 
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1 (1) IN GENERAL.—Subpart B of part III of sub2 chapter A of chapter 61 of the Internal Revenue Code 

3 of 1986 is amended by adding at the end the fol4 lowing new section: 

5 ‘‘SEC. 6050X. RETURNS RELATING TO QUALIFIED MOTOR 

6 VEHICLE INTEREST RECEIVED IN TRADE OR 

7 BUSINESS FROM INDIVIDUALS. 

8 ‘‘(a) QUALIFIED MOTOR VEHICLE INTEREST.—Any 

9 person— 

10 ‘‘(1) who is engaged in a trade or business, and 

11 ‘‘(2) who, in the course of such trade or business, 

12 receives from any individual interest aggregating 

13 $600 or more for any calendar year on any indebted14 ness secured by a qualified motor vehicle (as defined 

15 in section 163(h)(5)(D)), 

16 shall make the return described in subsection (b) with re17 spect to each individual from whom such interest was re18 ceived at such time as the Secretary may by regulations 

19 prescribe. 

20 ‘‘(b) FORM AND MANNER OF RETURNS.—A return is 

21 described in this subsection if such return— 

22 ‘‘(1) is in such form as the Secretary may pre23 scribe, 

24 ‘‘(2) contains— 
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1 ‘‘(A) the name and address of the indi2 vidual from whom the interest described in sub3 section (a)(2) was received, 

4 ‘‘(B) the amount of such interest received 

5 for the calendar year, and 

6 ‘‘(C) such other information as the Sec7 retary may prescribe. 

8 ‘‘(c) APPLICATION TO GOVERNMENTAL UNITS.—For 

9 purposes of subsection (a)— 

10 ‘‘(1) TREATED AS PERSONS.—The term ‘person’ 

11 includes any governmental unit (and any agency or 

12 instrumentality thereof). 

13 ‘‘(2) SPECIAL RULES.—In the case of a govern14 mental unit or any agency or instrumentality there15 of— 

16 ‘‘(A) subsection (a) shall be applied without 

17 regard to the trade or business requirement con18 tained therein, and 

19 ‘‘(B) any return required under subsection 

20 (a) shall be made by the officer or employee ap21 propriately designated for the purpose of making 

22 such return. 

23 ‘‘(d) STATEMENTS TO BE FURNISHED TO INDIVID24 UALS WITH RESPECT TO WHOM INFORMATION IS RE25 QUIRED.—Every person required to make a return under 
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1 subsection (a) shall furnish to each individual whose name 

2 is required to be set forth in such return a written statement 

3 showing— 

4 ‘‘(1) the name, address, and phone number of the 

5 information contact of the person required to make 

6 such return, and 

7 ‘‘(2) the aggregate amount of interest described 

8 in subsection (a)(2) received by the person required to 

9 make such return from the individual to whom the 

10 statement is required to be furnished. 

11 The written statement required under the preceding sen12 tence shall be furnished on or before January 31 of the year 

13 following the calendar year for which the return under sub14 section (a) was required to be made. 

15 ‘‘(e) RETURNS WHICH WOULD BE REQUIRED TO BE

16 MADE BY 2 OR MORE PERSONS.—Except to the extent pro17 vided in regulations prescribed by the Secretary, in the case 

18 of interest received by any person on behalf of another per19 son, only the person first receiving such interest shall be 

20 required to make the return under subsection (a).’’. 

21 (2) AMENDMENTS RELATING TO PENALTIES.— 

22 (A) Section 6721(e)(2)(A) of such Code is 

23 amended by striking ‘‘or 6050L’’ and inserting 

24 ‘‘6050L, or 6050X’’. 
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1 (B) Section 6722(c)(1)(A) of such Code is 

2 amended by striking ‘‘or 6050L(c)’’ and insert3 ing ‘‘6050L(c), or 6050X(d)’’. 

4 (C) Subparagraph (B) of section 6724(d)(1) 

5 of such Code is amended by redesignating clauses 

6 (xvi) through (xxii) as clauses (xvii) through 

7 (xxiii), respectively, and by inserting after clause 

8 (xii) the following new clause: 

9 ‘‘(xvi) section 6050X (relating to re10 turns relating to qualified motor vehicle in11 terest received in trade or business from in12 dividuals),’’. 

13 (D) Paragraph (2) of section 6724(d) of 

14 such Code is amended by striking the period at 

15 the end of subparagraph (DD) and inserting ‘‘, 

16 or’’ and by inserting after subparagraph (DD) 

17 the following new subparagraph: 

18 ‘‘(EE) section 6050X(d) (relating to returns 

19 relating to qualified motor vehicle interest re20 ceived in trade or business from individuals).’’. 

21 (3) CLERICAL AMENDMENT.—The table of sec22 tions for subpart B of part III of subchapter A of 

23 chapter 61 of such Code is amended by inserting after 

24 the item relating to section 6050W the following new 

25 item: 
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‘‘Sec. 6050X. Returns relating to qualified motor vehicle interest received in trade 

or business from individuals.’’. 

1 (e) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to taxable years beginning after Decem3 ber 31, 2008. 

4 SEC. 1009. ABOVE-THE-LINE DEDUCTION FOR STATE SALES 

5 TAX AND EXCISE TAX ON THE PURCHASE OF 

6 CERTAIN MOTOR VEHICLES. 

7 (a) IN GENERAL.—Subsection (a) of section 164 of the 

8 Internal Revenue Code of 1986 is amended by inserting 

9 after paragraph (5) the following new paragraph: 

10 ‘‘(6) Qualified motor vehicle taxes.’’. 

11 (b) QUALIFIED MOTOR VEHICLE TAXES.—Subsection 

12 (b) of section 164 of the Internal Revenue Code of 1986 is 

13 amended by adding at the end the following new paragraph: 

14 ‘‘(6) QUALIFIED MOTOR VEHICLE TAXES.— 

15 ‘‘(A) IN GENERAL.—For purposes of this 

16 section, the term ‘qualified motor vehicle taxes’ 

17 means any State or local sales or excise tax im18 posed on the purchase of a qualified motor vehi19 cle (as defined in section 163(h)(5)(D)). 

20 ‘‘(B) DOLLAR LIMITATION.—The amount 

21 taken into account under subparagraph (A) for 

22 any taxable year shall not exceed $49,500 

23 ($24,750 in the case of a separate return by a 

24 married individual). 
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1 ‘‘(C) INCOME LIMITATION.—The amount 

2 otherwise taken into account under subpara3 graph (A) (after the application of subparagraph 

4 (B)) for any taxable year shall be reduced (but 

5 not below zero) by the amount which bears the 

6 same ratio to the amount which is so treated 

7 as— 

8 ‘‘(i) the excess (if any) of— 

9 ‘‘(I) the taxpayer’s modified ad10 justed gross income for such taxable 

11 year, over 

12 ‘‘(II) $125,000 ($250,000 in the 

13 case of a joint return), bears to 

14 ‘‘(ii) $10,000. 

15 For purposes of the preceding sentence, the term 

16 ‘modified adjusted gross income’ means the ad17 justed gross income of the taxpayer for the tax18 able year increased by any amount excluded 

19 from gross income under section 911, 931, or 

20 933. 

21 ‘‘(D) QUALIFIED MOTOR VEHICLE TAXES

22 NOT INCLUDED IN COST OF ACQUIRED PROP23 ERTY.—The last sentence of subsection (a) shall 

24 not apply to any qualified motor vehicle taxes. 
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1 ‘‘(E) COORDINATION WITH GENERAL SALES

2 TAX.—This paragraph shall not apply in the 

3 case of a taxpayer who makes an election under 

4 paragraph (5) for the taxable year.’’. 

5 (c) CONFORMING AMENDMENTS.—Paragraph (5) of 

6 section 163(h) of the Internal Revenue Code of 1986, as 

7 added by section 1, is amended— 

8 (1) by adding at the end the following new sub9 paragraph: 

10 ‘‘(E) EXCLUSION.—If the indebtedness de11 scribed in subparagraph (A) includes the 

12 amounts of any State or local sales or excise 

13 taxes paid or accrued by the taxpayer in connec14 tion with the acquisition of a qualified motor ve15 hicle, the aggregate amount of such indebtedness 

16 taken into account under such subparagraph 

17 shall be reduced, but not below zero, by the 

18 amount of any such taxes for which a deduction 

19 is allowed under section 164(a) by reason of 

20 paragraph (6) thereof.’’, and 

21 (2) by inserting ‘‘, after the application of sub22 paragraph (E),’’ after ‘‘for any period’’ in subpara23 graph (B). 

24 (d) DEDUCTION ALLOWED ABOVE-THE-LINE.—Section 

25 62(a) of the Internal Revenue Code of 1986, as amended 
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1 by section 1, is amended by inserting after paragraph (22) 

2 the following new paragraph: 

3 ‘‘(23) QUALIFIED MOTOR VEHICLE TAXES.—The 

4 deduction allowed under section 164 by reason of sub5 section (a)(6) thereof.’’. 

6 (e) EFFECTIVE DATE.—The amendments made by this 

7 section shall apply to taxable years beginning after Decem8 ber 31, 2008. 

9 PART II—ALTERNATIVE MINIMUM TAX RELIEF 

10 SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RE11 LIEF FOR NONREFUNDABLE PERSONAL 

12 CREDITS. 

13 (a) IN GENERAL.—Paragraph (2) of section 26(a) (re14 lating to special rule for taxable years 2000 through 2008) 

15 is amended— 

16 (1) by striking ‘‘or 2008’’ and inserting ‘‘2008, 

17 or 2009’’, and 

18 (2) by striking ‘‘2008’’ in the heading thereof 

19 and inserting ‘‘2009’’. 

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

21 section shall apply to taxable years beginning after Decem22 ber 31, 2008. 
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1 SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MIN2 IMUM TAX EXEMPTION AMOUNT. 

3 (a) IN GENERAL.—Paragraph (1) of section 55(d) (re4 lating to exemption amount) is amended— 

5 (1) by striking ‘‘($69,950 in the case of taxable 

6 years beginning in 2008)’’ in subparagraph (A) and 

7 inserting ‘‘($70,950 in the case of taxable years begin8 ning in 2009)’’, and 

9 (2) by striking ‘‘($46,200 in the case of taxable 

10 years beginning in 2008)’’ in subparagraph (B) and 

11 inserting ‘‘($46,700 in the case of taxable years begin12 ning in 2009)’’. 

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

14 section shall apply to taxable years beginning after Decem15 ber 31, 2008. 

16 Subtitle B—Energy Incentives 

17 PART I—RENEWABLE ENERGY INCENTIVES 

18 SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRO19 DUCED FROM CERTAIN RENEWABLE RE20 SOURCES. 

21 (a) IN GENERAL.—Subsection (d) of section 45 is 

22 amended— 

23 (1) by striking ‘‘2010’’ in paragraph (1) and in24 serting ‘‘2013’’, 
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1 (2) by striking ‘‘2011’’ each place it appears in 

2 paragraphs (2), (3), (4), (6), (7) and (9) and insert3 ing ‘‘2014’’, and 

4 (3) by striking ‘‘2012’’ in paragraph (11)(B) 

5 and inserting ‘‘2014’’. 

6 (b) TECHNICAL AMENDMENT.—Paragraph (5) of sec7 tion 45(d) is amended by striking ‘‘and before’’ and all that 

8 follows and inserting ‘‘ and before October 3, 2008.’’. 

9 (c) EFFECTIVE DATE.— 

10 (1) IN GENERAL.—The amendments made by 

11 subsection (a) shall apply to property placed in serv12 ice after the date of the enactment of this Act. 

13 (2) TECHNICAL AMENDMENT.—The amendment 

14 made by subsection (b) shall take effect as if included 

15 in section 102 of the Energy Improvement and Exten16 sion Act of 2008. 

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

18 PRODUCTION CREDIT. 

19 (a) IN GENERAL.—Subsection (a) of section 48 is 

20 amended by adding at the end the following new paragraph: 

21 ‘‘(5) ELECTION TO TREAT QUALIFIED FACILITIES

22 AS ENERGY PROPERTY.— 

23 ‘‘(A) IN GENERAL.—In the case of any 

24 qualified investment credit facility— 
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1 ‘‘(i) such facility shall be treated as en2 ergy property for purposes of this section, 

3 and 

4 ‘‘(ii) the energy percentage with respect 

5 to such property shall be 30 percent. 

6 ‘‘(B) DENIAL OF PRODUCTION CREDIT.—No 

7 credit shall be allowed under section 45 for any 

8 taxable year with respect to any qualified invest9 ment credit facility. 

10 ‘‘(C) QUALIFIED INVESTMENT CREDIT FA11 CILITY.—For purposes of this paragraph, the 

12 term ‘qualified investment credit facility’ means 

13 any of the following facilities if no credit has 

14 been allowed under section 45 with respect to 

15 such facility and the taxpayer makes an irrev16 ocable election to have this paragraph apply to 

17 such facility: 

18 ‘‘(i) WIND FACILITIES.—Any facility 

19 described in paragraph (1) of section 45(d) 

20 if such facility is placed in service in 2009, 

21 2010, 2011, or 2012. 

22 ‘‘(ii) OTHER FACILITIES.—Any facility 

23 described in paragraph (2), (3), (4), (6), 

24 (7), (9), or (11) of section 45(d) if such fa-
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1 cility is placed in service in 2009, 2010, 

2 2011, 2012, or 2013.’’. 

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

4 section shall apply to facilities placed in service after De5 cember 31, 2008. 

6 SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT 

7 FOR RENEWABLE ENERGY PROPERTY. 

8 (a) REPEAL OF LIMITATION ON CREDIT FOR QUALI9 FIED SMALL WIND ENERGY PROPERTY.—Paragraph (4) of 

10 section 48(c) is amended by striking subparagraph (B) and 

11 by redesignating subparagraphs (C) and (D) as subpara12 graphs (B) and (C). 

13 (b) REPEAL OF LIMITATION ON PROPERTY FINANCED

14 BY SUBSIDIZED ENERGY FINANCING.— 

15 (1) IN GENERAL.—Section 48(a)(4) is amended 

16 by adding at the end the following new subparagraph: 

17 ‘‘(D) TERMINATION.—This paragraph shall 

18 not apply to periods after December 31, 2008, 

19 under rules similar to the rules of section 48(m) 

20 (as in effect on the day before the date of the en21 actment of the Revenue Reconciliation Act of 

22 1990).’’. 

23 (2) CONFORMING AMENDMENTS.— 

24 (A) Section 25C(e)(1) is amended by strik25 ing ‘‘(8), and (9)’’ and inserting ‘‘and (8)’’. 
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1 (B) Section 25D(e) is amended by striking 

2 paragraph (9). 

3 (C) Section 48A(b)(2) is amended by insert4 ing ‘‘(without regard to subparagraph (D) there5 of)’’ after ‘‘section 48(a)(4)’’. 

6 (D) Section 48B(b)(2) is amended by in7 serting ‘‘(without regard to subparagraph (D) 

8 thereof)’’ after ‘‘section 48(a)(4)’’. 

9 (c) EFFECTIVE DATE.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), the amendment made by this section shall 

12 apply to periods after December 31, 2008, under rules 

13 similar to the rules of section 48(m) of the Internal 

14 Revenue Code of 1986 (as in effect on the day before 

15 the date of the enactment of the Revenue Reconcili16 ation Act of 1990). 

17 (2) CONFORMING AMENDMENTS.—The amend18 ments made by subsection (b)(2) shall apply to tax19 able years beginning after December 31, 2008. 
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1 PART II—INCREASED ALLOCATIONS OF NEW 

2 CLEAN RENEWABLE ENERGY BONDS AND 

3 QUALIFIED ENERGY CONSERVATION BONDS 

4 SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW 

5 CLEAN RENEWABLE ENERGY BONDS. 

6 Subsection (c) of section 54C is amended by adding 

7 at the end the following new paragraph: 

8 ‘‘(4) ADDITIONAL LIMITATION.—The national 

9 new clean renewable energy bond limitation shall be 

10 increased by $1,600,000,000. Such increase shall be 

11 allocated by the Secretary consistent with the rules of 

12 paragraphs (2) and (3).’’. 

13 SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF 

14 QUALIFIED ENERGY CONSERVATION BONDS. 

15 (a) IN GENERAL.—Section 54D(d) is amended by 

16 striking ‘‘800,000,000’’ and inserting ‘‘$3,200,000,000’’. 

17 (b) CLARIFICATION WITH RESPECT TO GREEN COM18 MUNITY PROGRAMS.—Clause (ii) of section 54D(f)(1)(A) is 

19 amended by inserting ‘‘(including the use of loans, grants, 

20 or other repayment mechanisms to implement such pro21 grams)’’ after ‘‘green community programs’’. 
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1 PART III—ENERGY CONSERVATION INCENTIVES 

2 SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR 

3 NONBUSINESS ENERGY PROPERTY. 

4 (a) IN GENERAL.—Section 25C is amended by striking 

5 subsections (a) and (b) and inserting the following new sub6 sections: 

7 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an indi8 vidual, there shall be allowed as a credit against the tax 

9 imposed by this chapter for the taxable year an amount 

10 equal to 30 percent of the sum of— 

11 ‘‘(1) the amount paid or incurred by the tax12 payer during such taxable year for qualified energy 

13 efficiency improvements, and 

14 ‘‘(2) the amount of the residential energy prop15 erty expenditures paid or incurred by the taxpayer 

16 during such taxable year. 

17 ‘‘(b) LIMITATION.—The aggregate amount of the cred18 its allowed under this section for taxable years beginning 

19 in 2009 and 2010 with respect to any taxpayer shall not 

20 exceed $1,500.’’. 

21 (b) MODIFICATIONS OF STANDARDS FOR ENERGY-EF22 FICIENT BUILDING PROPERTY.— 

23 (1) ELECTRIC HEAT PUMPS.—Subparagraph (B) 

24 of section 25C(d)(3) is amended to read as follows: 

25 ‘‘(B) an electric heat pump which achieves 

26 the highest efficiency tier established by the Con-
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HR 1 EAS 

1 sortium for Energy Efficiency, as in effect on 

2 January 1, 2009.’’. 

3 (2) CENTRAL AIR CONDITIONERS.—Subpara4 graph (C) of section 25C(d)(3) is amended by striking 

5 ‘‘2006’’ and inserting ‘‘2009’’. 

6 (3) WATER HEATERS.—Subparagraph (D) of 

7 section 25C(d)(3) is amended to read as follows: 

8 ‘‘(E) a natural gas, propane, or oil water 

9 heater which has either an energy factor of at 

10 least 0.82 or a thermal efficiency of at least 90 

11 percent.’’. 

12 (4) WOOD STOVES.—Subparagraph (E) of sec13 tion 25C(d)(3) is amended by inserting ‘‘, as meas14 ured using a lower heating value’’ after ‘‘75 percent’’. 

15 (c) MODIFICATIONS OF STANDARDS FOR OIL FUR16 NACES AND HOT WATER BOILERS.— 

17 (1) IN GENERAL.—Paragraph (4) of section 

18 25C(d) is amended to read as follows: 

19 ‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND

20 OIL FURNACES AND HOT WATER BOILERS.— 

21 ‘‘(A) QUALIFIED NATURAL GAS FURNACE.— 

22 The term ‘qualified natural gas furnace’ means 

23 any natural gas furnace which achieves an an24 nual fuel utilization efficiency rate of not less 

25 than 95. 
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1 ‘‘(B) QUALIFIED NATURAL GAS HOT WATER

2 BOILER.—The term ‘qualified natural gas hot 

3 water boiler’ means any natural gas hot water 

4 boiler which achieves an annual fuel utilization 

5 efficiency rate of not less than 90. 

6 ‘‘(C) QUALIFIED PROPANE FURNACE.—The 

7 term ‘qualified propane furnace’ means any pro8 pane furnace which achieves an annual fuel uti9 lization efficiency rate of not less than 95. 

10 ‘‘(D) QUALIFIED PROPANE HOT WATER

11 BOILER.—The term ‘qualified propane hot water 

12 boiler’ means any propane hot water boiler 

13 which achieves an annual fuel utilization effi14 ciency rate of not less than 90. 

15 ‘‘(E) QUALIFIED OIL FURNACES.—The term 

16 ‘qualified oil furnace’ means any oil furnace 

17 which achieves an annual fuel utilization effi18 ciency rate of not less than 90. 

19 ‘‘(F) QUALIFIED OIL HOT WATER BOILER.— 

20 The term ‘qualified oil hot water boiler’ means 

21 any oil hot water boiler which achieves an an22 nual fuel utilization efficiency rate of not less 

23 than 90.’’. 

24 (2) CONFORMING AMENDMENT.—Clause (ii) of 

25 section 25C(d)(2)(A) is amended to read as follows: 
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1 ‘‘(ii) any qualified natural gas fur2 nace, qualified propane furnace, qualified 

3 oil furnace, qualified natural gas hot water 

4 boiler, qualified propane hot water boiler, or 

5 qualified oil hot water boiler, or’’. 

6 (d) MODIFICATIONS OF STANDARDS FOR QUALIFIED

7 ENERGY EFFICIENCY IMPROVEMENTS.— 

8 (1) QUALIFICATIONS FOR EXTERIOR WINDOWS, 

9 DOORS, AND SKYLIGHTS.—Subsection (c) of section 

10 25C is amended by adding at the end the following 

11 new paragraph: 

12 ‘‘(4) QUALIFICATIONS FOR EXTERIOR WINDOWS, 

13 DOORS, AND SKYLIGHTS.—Such term shall not in14 clude any component described in subparagraph (B) 

15 or (C) of paragraph (2) unless such component is 

16 equal to or below a U factor of 0.30 and SHGC of 

17 0.30.’’. 

18 (2) ADDITIONAL QUALIFICATION FOR INSULA19 TION.—Subparagraph (A) of section 25C(c)(2) is 

20 amended by inserting ‘‘and meets the prescriptive cri21 teria for such material or system established by the 

22 2009 International Energy Conservation Code, as 

23 such Code (including supplements) is in effect on the 

24 date of the enactment of the American Recovery and 
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1 Reinvestment Tax Act of 2009’’ after ‘‘such dwelling 

2 unit’’. 

3 (e) EXTENSION.—Section 25C(g)(2) is amended by 

4 striking ‘‘December 31, 2009’’ and inserting ‘‘December 31, 

5 2010’’. 

6 (f) EFFECTIVE DATES.— 

7 (1) IN GENERAL.—Except as provided in para8 graph (2), the amendments made by this section shall 

9 apply to taxable years beginning after December 31, 

10 2008. 

11 (2) EFFICIENCY STANDARDS.—The amendments 

12 made by paragraphs (1), (2), and (3) of subsection 

13 (b) and subsections (c) and (d) shall apply to prop14 erty placed in service after December 31, 2009. 

15 SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL 

16 ENERGY EFFICIENT PROPERTY. 

17 (a) REMOVAL OF CREDIT LIMITATION FOR PROPERTY

18 PLACED IN SERVICE.— 

19 (1) IN GENERAL.—Paragraph (1) of section 

20 25D(b) is amended to read as follows: 

21 ‘‘(1) MAXIMUM CREDIT FOR FUEL CELLS.—In 

22 the case of any qualified fuel cell property expendi23 ture, the credit allowed under subsection (a) (deter24 mined without regard to subsection (c)) for any tax25 able year shall not exceed $500 with respect to each 
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1 half kilowatt of capacity of the qualified fuel cell 

2 property (as defined in section 48(c)(1)) to which 

3 such expenditure relates.’’. 

4 (2) CONFORMING AMENDMENT.—Paragraph (4) 

5 of section 25D(e) is amended— 

6 (A) by striking all that precedes subpara7 graph (B) and inserting the following: 

8 ‘‘(4) FUEL CELL EXPENDITURE LIMITATIONS IN

9 CASE OF JOINT OCCUPANCY.—In the case of any 

10 dwelling unit with respect to which qualified fuel cell 

11 property expenditures are made and which is jointly 

12 occupied and used during any calendar year as a res13 idence by two or more individuals the following rules 

14 shall apply: 

15 ‘‘(A) MAXIMUM EXPENDITURES FOR FUEL

16 CELLS.—The maximum amount of such expendi17 tures which may be taken into account under 

18 subsection (a) by all such individuals with re19 spect to such dwelling unit during such calendar 

20 year shall be $1,667 in the case of each half kilo21 watt of capacity of qualified fuel cell property 

22 (as defined in section 48(c)(1)) with respect to 

23 which such expenditures relate.’’, and 

24 (B) by striking subparagraph (C). 
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1 (b) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to taxable years beginning after Decem3 ber 31, 2008. 

4 SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTER5 NATIVE FUEL VEHICLE REFUELING PROP6 ERTY. 

7 (a) IN GENERAL.—Section 30C(e) is amended by add8 ing at the end the following new paragraph: 

9 ‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN

10 SERVICE DURING 2009 AND 2010.—In the case of prop11 erty placed in service in taxable years beginning after 

12 December 31, 2008, and before January 1, 2011— 

13 ‘‘(A) in the case of any such property which 

14 does not relate to hydrogen— 

15 ‘‘(i) subsection (a) shall be applied by 

16 substituting ‘50 percent’ for ‘30 percent’, 

17 ‘‘(ii) subsection (b)(1) shall be applied 

18 by substituting ‘$50,000’ for ‘$30,000’, and 

19 ‘‘(iii) subsection (b)(2) shall be applied 

20 by substituting ‘$2,000’ for ‘$1,000’, and 

21 ‘‘(B) in the case of any such property which 

22 relates to hydrogen, subsection (b)(1) shall be ap23 plied by substituting ‘$200,000’ for ‘$30,000’.’’. 

24 (b) ENSURING CONSUMER ACCESSIBILITY TO ALTER25 NATIVE FUEL VEHICLE REFUELING PROPERTY IN THE
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1 CASE OF ELECTRICITY.—Section 179(d)(3) is amended by 

2 striking subparagraph (B) and inserting the following: 

3 ‘‘(B) for the recharging of motor vehicles 

4 propelled by electricity, but only if— 

5 ‘‘(i) the property complies with the So6 ciety of Automotive Engineers’ connection 

7 standards, 

8 ‘‘(ii) the property provides for non-re9 strictive access for charging and for pay10 ment interoperability with other systems, 

11 and 

12 ‘‘(iii) the property— 

13 ‘‘(I) is located on property owned 

14 by the taxpayer, or 

15 ‘‘(II) is located on property owned 

16 by another person, is placed in service 

17 with the permission of such other per18 son, and is fully maintained by the 

19 taxpayer.’’. 

20 (c) EFFECTIVE DATE.—The amendments made by this 

21 section shall apply to taxable years beginning after Decem22 ber 31, 2008. 

23 SEC. 1124. RECOVERY PERIOD FOR DEPRECIATION OF 

24 SMART METERS. 

25 (a) TEMPORARY 5-YEAR RECOVERY PERIOD.— 
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1 (1) IN GENERAL.—Subparagraph (B) of section 

2 168(e)(3) is amended by striking ‘‘and’’ at the end of 

3 clause (vi), by striking the period at the end of clause 

4 (vii) and inserting ‘‘, and’’, and by adding at the end 

5 the following new clause: 

6 ‘‘(viii) any qualified smart electric 

7 meter which is placed in service before Jan8 uary 1, 2011.’’. 

9 (2) CONFORMING AMENDMENT.—Clause (iii) of 

10 section 168(e)(3)(D) is amended by inserting ‘‘which 

11 is placed in service after December 31, 2010’’ after 

12 ‘‘electric meter’’. 

13 (b) TECHNICAL AMENDMENTS.—Paragraphs 

14 (18)(A)(ii) and (19)(A)(ii) of section 168(i) are each 

15 amended by striking ‘‘16 years’’ and inserting ‘‘10 years’’. 

16 (c) EFFECTIVE DATES.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), the amendments made by this section shall 

19 apply to property placed in service after the date of 

20 the enactment of this Act. 

21 (2) TECHNICAL AMENDMENT.—The amendments 

22 made by subsection (b) shall take effect as if included 

23 in section 306 of the Energy Improvement and Exten24 sion Act of 2008. 
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1 PART IV—ENERGY RESEARCH INCENTIVES 

2 SEC. 1131. INCREASED RESEARCH CREDIT FOR ENERGY RE3 SEARCH. 

4 (a) IN GENERAL.—Section 41 is amended by redesig5 nating subsection (h) as subsection (i) and by inserting 

6 after subsection (g) the following new subsection: 

7 ‘‘(h) ENERGY RESEARCH CREDIT.—In the case of any 

8 taxable year beginning in 2009 or 2010— 

9 ‘‘(1) IN GENERAL.—The credit determined under 

10 subsection (a)(1) shall be increased by 20 percent of 

11 the qualified energy research expenses for the taxable 

12 year. 

13 ‘‘(2) QUALIFIED ENERGY RESEARCH EX14 PENSES.—For purposes of this subsection— 

15 ‘‘(A) IN GENERAL.—The term ‘qualified en16 ergy research expenses’ means so much of the 

17 taxpayer’s qualified research expenses as are re18 lated to the fields of fuel cells and battery tech19 nology, renewable energy and renewable fuels, 

20 energy conservation technology, efficient trans21 mission and distribution of electricity, and car22 bon capture and sequestration. 

23 ‘‘(B) COORDINATION WITH QUALIFYING AD24 VANCED ENERGY PROJECT CREDIT.—Such term 

25 shall not include expenditures taken into account 
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1 in determining the amount of the credit under 

2 section 48 or 48C. 

3 ‘‘(3) COORDINATION WITH OTHER RESEARCH

4 CREDITS.— 

5 ‘‘(A) IN GENERAL.—The amount of quali6 fied energy research expenses taken into account 

7 under subsection (a)(1)(A) shall not exceed the 

8 base amount. 

9 ‘‘(B) ALTERNATIVE SIMPLIFIED CREDIT.— 

10 For purposes of subsection (c)(5), the amount of 

11 qualified energy research expenses taken into ac12 count for the taxable year for which the credit is 

13 being determined shall not exceed— 

14 ‘‘(i) in the case of subsection (c)(5)(A), 

15 50 percent of the average qualified research 

16 expenses for the 3 taxable years preceding 

17 the taxable year for which the credit is 

18 being determined, and 

19 ‘‘(ii) in the case of subsection 

20 (c)(5)(B)(ii), zero. 

21 ‘‘(C) BASIC RESEARCH AND ENERGY RE22 SEARCH CONSORTIUM PAYMENTS.—Any amount 

23 taken into account under paragraph (1) shall 

24 not be taken into account under paragraph (2) 

25 or (3) of subsection (a).’’. 
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1 (b) CONFORMING AMENDMENT.—Subparagraph (B) of 

2 section 41(i)(1)(B), as redesignated by subsection (a), is 

3 amended by inserting ‘‘(in the case of the increase in the 

4 credit determined under subsection (h), December 31, 

5 2010)’’ after ‘‘December 31, 2009’’. 

6 (c) EFFECTIVE DATE.—The amendments made by this 

7 section shall apply to taxable years beginning after Decem8 ber 31, 2008. 

9 PART V—MODIFICATION OF CREDIT FOR CARBON 

10 DIOXIDE SEQUESTRATION 

11 SEC. 1141. APPLICATION OF MONITORING REQUIREMENTS 

12 TO CARBON DIOXIDE USED AS A TERTIARY 

13 INJECTANT. 

14 (a) IN GENERAL.—Section 45Q(a)(2) is amended by 

15 striking ‘‘and’’ at the end of subparagraph (A), by striking 

16 the period at the end of subparagraph (B) and inserting 

17 ‘‘, and’’, and by adding at the end the following new sub18 paragraph: 

19 ‘‘(C) disposed of by the taxpayer in secure 

20 geological storage.’’. 

21 (b) CONFORMING AMENDMENTS.— 

22 (1) Section 45Q(d)(2) is amended— 

23 (A) by striking ‘‘subsection (a)(1)(B)’’ and 

24 inserting ‘‘paragraph (1)(B) or (2)(C) of sub25 section (a)’’, 
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1 (B) by striking ‘‘and unminable coal seems’’ 

2 and inserting ‘‘, oil and gas reservoirs, and 

3 unminable coal seams’’, and 

4 (C) by inserting ‘‘the Secretary of Energy, 

5 and the Secretary of the Interior,’’ after ‘‘Envi6 ronmental Protection Agency’’. 

7 (2) Section 45Q(e) is amended by striking ‘‘cap8 tured and disposed of or used as a tertiary injectant’’ 

9 and inserting ‘‘taken into account in accordance with 

10 subsection (a)’’. 

11 (c) EFFECTIVE DATE.—The amendments made by this 

12 section shall apply to carbon dioxide captured after the date 

13 of the enactment of this Act. 

14 PART VI—PLUG-IN ELECTRIC DRIVE MOTOR 

15 VEHICLES 

16 SEC. 1151. MODIFICATION OF CREDIT FOR QUALIFIED 

17 PLUG-IN ELECTRIC MOTOR VEHICLES. 

18 (a) INCREASE IN VEHICLES ELIGIBLE FOR CREDIT.— 

19 Section 30D(b)(2)(B) is amended by striking ‘‘250,000’’ 

20 and inserting ‘‘500,000’’. 

21 (b) EXCLUSION OF NEIGHBORHOOD ELECTRIC VEHI22 CLES FROM EXISTING CREDIT.—Section 30D(e)(1) is 

23 amended to read as follows: 

24 ‘‘(1) MOTOR VEHICLE.—The term ‘motor vehicle’ 

25 means a motor vehicle (as defined in section 
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1 30(c)(2)), which is treated as a motor vehicle for pur2 poses of title II of the Clean Air Act.’’. 

3 (c) CREDIT FOR CERTAIN OTHER VEHICLES.—Section 

4 30D is amended— 

5 (1) by redesignating subsections (f) and (g) as 

6 subsections (g) and (h), respectively, and 

7 (2) by inserting after subsection (e) the following 

8 new subsection: 

9 ‘‘(f) CREDIT FOR CERTAIN OTHER VEHICLES.—For 

10 purposes of this section— 

11 ‘‘(1) IN GENERAL.—In the case of a specified ve12 hicle, this section shall be applied with the following 

13 modifications: 

14 ‘‘(A) For purposes of subsection (a)(1), in 

15 lieu of the applicable amount determined under 

16 subsection (a)(2), the applicable amount shall be 

17 10 percent of so much of the cost of the specified 

18 vehicle as does not exceed $40,000. 

19 ‘‘(B) Subsection (b) shall not apply and no 

20 specified vehicle shall be taken into account 

21 under subsection (b)(2). 

22 ‘‘(C) In the case of a specified vehicle which 

23 is a 2-or 3-wheeled motor vehicle, subsection 

24 (c)(1) shall be applied by substituting ‘2.5 kilo25 watt hours’ for ‘4 kilowatt hours’. 
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1 ‘‘(D) In the case of a specified vehicle which 

2 is a low-speed motor vehicle, subsection (c)(3) 

3 shall not apply. 

4 ‘‘(2) SPECIFIED VEHICLE.—For purposes of this 

5 subsection— 

6 ‘‘(A) IN GENERAL.—The term ‘specified ve7 hicle’ means— 

8 ‘‘(i) any 2- or 3- wheeled motor vehicle, 

9 or 

10 ‘‘(ii) any low-speed motor vehicle, 

11 which is placed in service after December 31, 

12 2009, and before January 1, 2012. 

13 ‘‘(B) 2- OR 3-WHEELED MOTOR VEHICLE.— 

14 The term ‘2- or 3-wheeled motor vehicle’ means 

15 any vehicle— 

16 ‘‘(i) which would be described in sec17 tion 30(c)(2) except that it has 2 or 3 

18 wheels, 

19 ‘‘(ii) with motive power having a seat 

20 or saddle for the use of the rider and de21 signed to travel on not more than 3 wheels 

22 in contact with the ground, 

23 ‘‘(iii) which has an electric motor that 

24 produces in excess of 5-brake horsepower, 
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1 ‘‘(iv) which draws propulsion from 1 

2 or more traction batteries, and 

3 ‘‘(v) which has been certified to the De4 partment of Transportation pursuant to 

5 section 567 of title 49, Code of Federal Reg6 ulations, as conforming to all applicable 

7 Federal motor vehicle safety standards in 

8 effect on the date of the manufacture of the 

9 vehicle. 

10 ‘‘(C) LOW-SPEED MOTOR VEHICLE.—The 

11 term ‘low-speed motor vehicle’ means a motor ve12 hicle (as defined in section 30(c)(2)) which— 

13 ‘‘(i) is placed in service after December 

14 31, 2009, and 

15 ‘‘(ii) meets the requirements of section 

16 571.500 of title 49, Code of Federal Regula17 tions.’’. 

18 (d) EFFECTIVE DATES.— 

19 (1) IN GENERAL.—The amendment made by sub20 sections (a) and (c) shall take effect on the date of the 

21 enactment of this Act. 

22 (2) OTHER MODIFICATIONS.—The amendments 

23 made by subsection (b) shall apply to property placed 

24 in service after December 31, 2009, in taxable years 

25 beginning after such date. 
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1 SEC. 1152. CONVERSION KITS. 

2 (a) IN GENERAL.—Section 30B (relating to alternative 

3 motor vehicle credit) is amended by redesignating sub4 sections (i) and (j) as subsections (j) and (k), respectively, 

5 and by inserting after subsection (h) the following new sub6 section: 

7 ‘‘(i) PLUG-IN CONVERSION CREDIT.— 

8 ‘‘(1) IN GENERAL.—For purposes of subsection 

9 (a), the plug-in conversion credit determined under 

10 this subsection with respect to any motor vehicle 

11 which is converted to a qualified plug-in electric drive 

12 motor vehicle is 10 percent of so much of the cost of 

13 the converting such vehicle as does not exceed $40,000. 

14 ‘‘(2) DEFINITIONS AND SPECIAL RULES.—For 

15 purposes of this subsection— 

16 ‘‘(A) QUALIFIED PLUG-IN ELECTRIC DRIVE

17 MOTOR VEHICLE.—The term ‘qualified plug-in 

18 electric drive motor vehicle’ means any new 

19 qualified plug-in electric drive motor vehicle (as 

20 defined in section 30D(c), determined without re21 gard to paragraphs (4) and (6) thereof). 

22 ‘‘(B) PLUG-IN TRACTION BATTERY MOD23 ULE.—The term ‘plug-in traction battery mod24 ule’ means an electro-chemical energy storage de25 vice which— 
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1 ‘‘(i) which has a traction battery ca2 pacity of not less than 2.5 kilowatt hours, 

3 ‘‘(ii) which is equipped with an elec4 trical plug by means of which it can be en5 ergized and recharged when plugged into an 

6 external source of electric power, 

7 ‘‘(iii) which consists of a standardized 

8 configuration and is mass produced, 

9 ‘‘(iv) which has been tested and ap10 proved by the National Highway Transpor11 tation Safety Administration as compliant 

12 with applicable motor vehicle and motor ve13 hicle equipment safety standards when in14 stalled by a mechanic with standardized 

15 training in protocols established by the bat16 tery manufacturer as part of a nationwide 

17 distribution program, 

18 ‘‘(v) which complies with the require19 ments of section 32918 of title 49, United 

20 States Code, and 

21 ‘‘(vi) which is certified by a battery 

22 manufacturer as meeting the requirements 

23 of clauses (i) through (v). 

24 ‘‘(C) CREDIT ALLOWED TO LESSOR OF BAT25 TERY MODULE.—In the case of a plug-in traction 
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1 battery module which is leased to the taxpayer, 

2 the credit allowed under this subsection shall be 

3 allowed to the lessor of the plug-in traction bat4 tery module. 

5 ‘‘(D) CREDIT ALLOWED IN ADDITION TO

6 OTHER CREDITS.—The credit allowed under this 

7 subsection shall be allowed with respect to a 

8 motor vehicle notwithstanding whether a credit 

9 has been allowed with respect to such motor vehi10 cle under this section (other than this subsection) 

11 in any preceding taxable year. 

12 ‘‘(3) TERMINATION.—This subsection shall not 

13 apply to conversions made after December 31, 2012.’’. 

14 (b) CREDIT TREATED AS PART OF ALTERNATIVE

15 MOTOR VEHICLE CREDIT.—Section 30B(a) is amended by 

16 striking ‘‘and’’ at the end of paragraph (3), by striking the 

17 period at the end of paragraph (4) and inserting ‘‘, and’’, 

18 and by adding at the end the following new paragraph: 

19 ‘‘(5) the plug-in conversion credit determined 

20 under subsection (i).’’. 

21 (c) NO RECAPTURE FOR VEHICLES CONVERTED TO

22 QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHI23 CLES.—Paragraph (8) of section 30B(h) is amended by 

24 adding at the end the following: ‘‘, except that no benefit 

25 shall be recaptured if such property ceases to be eligible for 
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1 such credit by reason of conversion to a qualified plug-in 

2 electric drive motor vehicle.’’. 

3 (d) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply to property placed in service after De5 cember 31, 2008, in taxable years beginning after such date. 

6 Subtitle C—Tax Incentives for 

7 Business 

8 PART I—TEMPORARY INVESTMENT INCENTIVES 

9 SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY 

10 ACQUIRED DURING 2009. 

11 (a) EXTENSION OF SPECIAL ALLOWANCE.— 

12 (1) IN GENERAL.—Paragraph (2) of section 

13 168(k) is amended— 

14 (A) by striking ‘‘January 1, 2010’’ and in15 serting ‘‘January 1, 2011’’, and 

16 (B) by striking ‘‘January 1, 2009’’ each 

17 place it appears and inserting ‘‘January 1, 

18 2010’’. 

19 (2) CONFORMING AMENDMENTS.— 

20 (A) The heading for subsection (k) of section 

21 168 is amended by striking ‘‘JANUARY 1, 2009’’ 

22 and inserting ‘‘JANUARY 1, 2010’’. 

23 (B) The heading for clause (ii) of section 

24 168(k)(2)(B) is amended by striking ‘‘PRE-JANU-
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1 ARY 1, 2009’’ and inserting ‘‘PRE-JANUARY 1, 

2 2010’’. 

3 (C) Subparagraph (B) of section 168(l)(5) 

4 is amended by striking ‘‘January 1, 2009’’ and 

5 inserting ‘‘January 1, 2010’’. 

6 (D) Subparagraph (C) of section 168(n)(2) 

7 is amended by striking ‘‘January 1, 2009’’ and 

8 inserting ‘‘January 1, 2010’’. 

9 (E) Subparagraph (B) of section 

10 1400N(d)(3) is amended by striking ‘‘January 1, 

11 2009’’ and inserting ‘‘January 1, 2010’’. 

12 (3) TECHNICAL AMENDMENT.—Subparagraph 

13 (D) of section 168(k)(4) is amended— 

14 (A) by striking ‘‘and’’ at the end of clause 

15 (i), 

16 (B) by redesignating clause (ii) as clause 

17 (iii), and 

18 (C) by inserting after clause (i) the fol19 lowing new clause: 

20 ‘‘(ii) ‘April 1, 2008’ shall be sub21 stituted for ‘January 1, 2008’ in subpara22 graph (A)(iii)(I) thereof, and’’. 

23 (b) EXTENSION OF ELECTION TO ACCELERATE THE

24 AMT AND RESEARCH CREDITS IN LIEU OF BONUS DEPRE25 CIATION.—Section 168(k)(4) (relating to election to accel-
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1 erate the AMT and research credits in lieu of bonus depre2 ciation) is amended— 

3 (1) by striking ‘‘2009’’ and inserting ‘‘2010’’in 

4 subparagraph (D)(iii) (as redesignated by subsection 

5 (a)(3)), and 

6 (2) by adding at the end the following new sub7 paragraph: 

8 ‘‘(H) SPECIAL RULES FOR EXTENSION

9 PROPERTY.— 

10 ‘‘(i) TAXPAYERS PREVIOUSLY ELECT11 ING ACCELERATION.—In the case of a tax12 payer who made the election under subpara13 graph (A) for its first taxable year ending 

14 after March 31, 2008— 

15 ‘‘(I) the taxpayer may elect not to 

16 have this paragraph apply to extension 

17 property, but 

18 ‘‘(II) if the taxpayer does not 

19 make the election under subclause (I), 

20 in applying this paragraph to the tax21 payer a separate bonus depreciation 

22 amount, maximum amount, and max23 imum increase amount shall be com24 puted and applied to eligible qualified 

25 property which is extension property 
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1 and to eligible qualified property 

2 which is not extension property. 

3 ‘‘(ii) TAXPAYERS NOT PREVIOUSLY

4 ELECTING ACCELERATION.—In the case of a 

5 taxpayer who did not make the election 

6 under subparagraph (A) for its first taxable 

7 year ending after March 31, 2008— 

8 ‘‘(I) the taxpayer may elect to 

9 have this paragraph apply to its first 

10 taxable year ending after December 31, 

11 2008, and each subsequent taxable 

12 year, and 

13 ‘‘(II) if the taxpayer makes the 

14 election under subclause (I), this para15 graph shall only apply to eligible 

16 qualified property which is extension 

17 property. 

18 ‘‘(iii) EXTENSION PROPERTY.—For 

19 purposes of this subparagraph, the term ‘ex20 tension property’ means property which is 

21 eligible qualified property solely by reason 

22 of the extension of the application of the 

23 special allowance under paragraph (1) pur24 suant to the amendments made by section 

25 1201(a) of the American Recovery and Re-
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1 investment Tax Act of 2009 (and the appli2 cation of such extension to this paragraph 

3 pursuant to the amendment made by section 

4 1201(b)(1) of such Act).’’. 

5 (c) EFFECTIVE DATES.— 

6 (1) IN GENERAL.—Except as provided in para7 graph (2), the amendments made by this section shall 

8 apply to property placed in service after December 

9 31, 2008, in taxable years ending after such date. 

10 (2) TECHNICAL AMENDMENT.—The amendments 

11 made by subsection (a)(3) shall apply to taxable years 

12 ending after March 31, 2008. 

13 SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EX14 PENSING OF CERTAIN DEPRECIABLE BUSI15 NESS ASSETS. 

16 (a) IN GENERAL.—Paragraph (7) of section 179(b) is 

17 amended— 

18 (1) by striking ‘‘2008’’ and inserting ‘‘2008, or 

19 2009’’, and 

20 (2) by striking ‘‘2008’’ in the heading thereof and 

21 inserting ‘‘2008, AND 2009’’. 

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

23 section shall apply to taxable years beginning after Decem24 ber 31, 2008. 
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1 PART II—5-YEAR CARRYBACK OF OPERATING 

2 LOSSES 

3 SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES. 

4 (a) IN GENERAL.—Subparagraph (H) of section 

5 172(b)(1) is amended to read as follows: 

6 ‘‘(H) CARRYBACK FOR 2008 AND 2009 NET

7 OPERATING LOSSES.— 

8 ‘‘(i) IN GENERAL.—In the case of an 

9 applicable 2008 or 2009 net operating loss 

10 with respect to which the taxpayer has elect11 ed the application of this subparagraph— 

12 ‘‘(I) subparagraph (A)(i) shall be 

13 applied by substituting any whole 

14 number elected by the taxpayer which 

15 is more than 2 and less than 6 for ‘2’, 

16 ‘‘(II) subparagraph (E)(ii) shall 

17 be applied by substituting the whole 

18 number which is one less than the 

19 whole number substituted under sub20 clause (II) for ‘2’, and 

21 ‘‘(III) subparagraph (F) shall not 

22 apply. 

23 ‘‘(ii) APPLICABLE 2008 OR 2009 NET OP24 ERATING LOSS.—For purposes of this sub25 paragraph, the term ‘applicable 2008 or 

26 2009 net operating loss’ means— 
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HR 1 EAS 

1 ‘‘(I) the taxpayer’s net operating 

2 loss for any taxable year ending in 

3 2008 or 2009, or 

4 ‘‘(II) if the taxpayer elects to have 

5 this subclause apply in lieu of sub6 clause (I), the taxpayer’s net operating 

7 loss for any taxable year beginning in 

8 2008 or 2009. 

9 ‘‘(iii) ELECTION.—Any election under 

10 this subparagraph shall be made in such 

11 manner as may be prescribed by the Sec12 retary, and shall be made by the due date 

13 (including extension of time) for filing the 

14 taxpayer’s return for the taxable year of the 

15 net operating loss. Any such election, once 

16 made, shall be irrevocable. 

17 ‘‘(iv) COORDINATION WITH ALTER18 NATIVE TAX NET OPERATING LOSS DEDUC19 TION.—In the case of a taxpayer who elects 

20 to have clause (ii)(II) apply, section 

21 56(d)(1)(A)(ii) shall be applied by sub22 stituting ‘ending during 2001 or 2002 or 

23 beginning during 2008 or 2009’ for ‘ending 

24 during 2001, 2002, 2008, or 2009’.’’. 
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1 (b) ALTERNATIVE TAX NET OPERATING LOSS DEDUC2 TION.—Subclause (I) of section 56(d)(1)(A)(ii) is amended 

3 to read as follows: 

4 ‘‘(I) the amount of such deduction 

5 attributable to the sum of carrybacks of 

6 net operating losses from taxable years 

7 ending during 2001, 2002, 2008, or 

8 2009 and carryovers of net operating 

9 losses to such taxable years, or’’. 

10 (c) LOSS FROM OPERATIONS OF LIFE INSURANCE

11 COMPANIES.—Subsection (b) of section 810 is amended by 

12 adding at the end the following new paragraph: 

13 ‘‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES.— 

14 ‘‘(A) IN GENERAL.—In the case of an appli15 cable 2008 or 2009 loss from operations with re16 spect to which the taxpayer has elected the appli17 cation of this paragraph, paragraph (1)(A) shall 

18 be applied, at the election of the taxpayer, by 

19 substituting ‘5’ or ‘4’ for ‘3’. 

20 ‘‘(B) APPLICABLE 2008 OR 2009 LOSS FROM

21 OPERATIONS.—For purposes of this paragraph, 

22 the term ‘applicable 2008 or 2009 loss from oper23 ations’ means— 
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1 ‘‘(i) the taxpayer’s loss from operations 

2 for any taxable year ending in 2008 or 

3 2009, or 

4 ‘‘(ii) if the taxpayer elects to have this 

5 clause apply in lieu of clause (i), the tax6 payer’s loss from operations for any taxable 

7 year beginning in 2008 or 2009. 

8 ‘‘(C) ELECTION.—Any election under this 

9 paragraph shall be made in such manner as may 

10 be prescribed by the Secretary, and shall be made 

11 by the due date (including extension of time) for 

12 filing the taxpayer’s return for the taxable year 

13 of the loss from operations. Any such election, 

14 once made, shall be irrevocable. 

15 ‘‘(D) COORDINATION WITH ALTERNATIVE

16 TAX NET OPERATING LOSS DEDUCTION.—In the 

17 case of a taxpayer who elects to have subpara18 graph (B)(ii) apply, section 56(d)(1)(A)(ii) shall 

19 be applied by substituting ‘ending during 2001 

20 or 2002 or beginning during 2008 or 2009’ for 

21 ‘ending during 2001, 2002, 2008, or 2009’.’’. 

22 (d) CONFORMING AMENDMENT.—Section 172 is 

23 amended by striking subsection (k) and by redesignating 

24 subsection (l) as subsection (k). 

25 (e) EFFECTIVE DATE.— 
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1 (1) IN GENERAL.—Except as otherwise provided 

2 in this subsection, the amendments made by this sec3 tion shall apply to net operating losses arising in tax4 able years ending after December 31, 2007. 

5 (2) ALTERNATIVE TAX NET OPERATING LOSS DE6 DUCTION.—The amendment made by subsection (b) 

7 shall apply to taxable years ending after 1997. 

8 (3) LOSS FROM OPERATIONS OF LIFE INSURANCE

9 COMPANIES.—The amendment made by subsection (d) 

10 shall apply to losses from operations arising in tax11 able years ending after December 31, 2007. 

12 (4) TRANSITIONAL RULE.—In the case of a net 

13 operating loss (or, in the case of a life insurance com14 pany, a loss from operations) for a taxable year end15 ing before the date of the enactment of this Act— 

16 (A) any election made under section 

17 172(b)(3) or 810(b)(3) of the Internal Revenue 

18 Code of 1986 with respect to such loss may (not19 withstanding such section) be revoked before the 

20 applicable date, 

21 (B) any election made under section 172(k) 

22 or 810(b)(4) of such Code with respect to such 

23 loss shall (notwithstanding such section) be treat24 ed as timely made if made before the applicable 

25 date, and 
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1 (C) any application under section 6411(a) 

2 of such Code with respect to such loss shall be 

3 treated as timely filed if filed before the applica4 ble date. 

5 For purposes of this paragraph, the term ‘‘applicable 

6 date’’ means the date which is 60 days after the date 

7 of the enactment of this Act. 

8 SEC. 1212. EXCEPTION FOR TARP RECIPIENTS. 

9 The amendments made by this part shall not apply 

10 to— 

11 (1) any taxpayer if— 

12 (A) the Federal Government acquires, at 

13 any time, an equity interest in the taxpayer 

14 pursuant to the Emergency Economic Stabiliza15 tion Act of 2008, or 

16 (B) the Federal Government acquires, at 

17 any time, any warrant (or other right) to ac18 quire any equity interest with respect to the tax19 payer pursuant to such Act, 

20 (2) the Federal National Mortgage Association 

21 and the Federal Home Loan Mortgage Corporation, 

22 and 

23 (3) any taxpayer which at any time in 2008 or 

24 2009 is a member of the same affiliated group (as de25 fined in section 1504 of the Internal Revenue Code of 
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1 1986, determined without regard to subsection (b) 

2 thereof) as a taxpayer described in paragraph (1) or 

3 (2). 

4 PART III—INCENTIVES FOR NEW JOBS 

5 SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS 

6 AND DISCONNECTED YOUTH. 

7 (a) IN GENERAL.—Subsection (d) of section 51 is 

8 amended by adding at the end the following new paragraph: 

9 ‘‘(14) CREDIT ALLOWED FOR UNEMPLOYED VET10 ERANS AND DISCONNECTED YOUTH HIRED IN 2009 OR

11 2010.— 

12 ‘‘(A) IN GENERAL.—Any unemployed vet13 eran or disconnected youth who begins work for 

14 the employer during 2009 or 2010 shall be treat15 ed as a member of a targeted group for purposes 

16 of this subpart. 

17 ‘‘(B) DEFINITIONS.—For purposes of this 

18 paragraph— 

19 ‘‘(i) UNEMPLOYED VETERAN.—The 

20 term ‘unemployed veteran’ means any vet21 eran (as defined in paragraph (3)(B), deter22 mined without regard to clause (ii) thereof) 

23 who is certified by the designated local 

24 agency as— 
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1 (I) having been discharged or re2 leased from active duty in the Armed 

3 Forces during the period beginning on 

4 September 1, 2001, and ending on De5 cember 31, 2010, and 

6 ‘‘(II) being in receipt of unem7 ployment compensation under State or 

8 Federal law for not less than 4 weeks 

9 during the 1-year period ending on the 

10 hiring date. 

11 ‘‘(ii) DISCONNECTED YOUTH.—The 

12 term ‘disconnected youth’ means any indi13 vidual who is certified by the designated 

14 local agency— 

15 ‘‘(I) as having attained age 16 

16 but not age 25 on the hiring date, 

17 ‘‘(II) as not regularly attending 

18 any secondary, technical, or post-sec19 ondary school during the 6-month pe20 riod preceding the hiring date, 

21 ‘‘(III) as not regularly employed 

22 during such 6-month period, and 

23 ‘‘(IV) as not readily employable 

24 by reason of lacking a sufficient num25 ber of basic skills.’’. 
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1 (b) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to individuals who begin work for the 

3 employer after December 31, 2008. 

4 PART IV—CANCELLATION OF INDEBTEDNESS 

5 SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME 

6 ARISING FROM INDEBTEDNESS DISCHARGED 

7 BY THE REPURCHASE OF A DEBT INSTRU8 MENT. 

9 (a) IN GENERAL.—Section 108 (relating to income 

10 from discharge of indebtedness) is amended by adding at 

11 the end the following new subsection: 

12 ‘‘(i) DEFERRAL AND RATABLE INCLUSION OF INCOME

13 ARISING FROM INDEBTEDNESS DISCHARGED BY THE RE14 PURCHASE OF A DEBT INSTRUMENT.— 

15 ‘‘(1) IN GENERAL.—Notwithstanding section 61, 

16 income from the discharge of indebtedness in connec17 tion with the repurchase of a debt instrument after 

18 December 31, 2008, and before January 1, 2011, shall 

19 be includible in gross income ratably over the 8-tax20 able-year period beginning with— 

21 ‘‘(A) in the case of a repurchase occurring 

22 in 2009, the second taxable year following the 

23 taxable year in which the repurchase occurs, and 
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1 ‘‘(B) in the case of a repurchase occurring 

2 in 2010, the taxable year following the taxable 

3 year in which the repurchase occurs. 

4 ‘‘(2) DEBT INSTRUMENT.—For purposes of this 

5 subsection, the term ‘debt instrument’ means a bond, 

6 debenture, note, certificate, or any other instrument 

7 or contractual arrangement constituting indebtedness 

8 (within the meaning of section 1275(a)(1)). 

9 ‘‘(3) REPURCHASE.—For purposes of this sub10 section, the term ‘repurchase’ means, with respect to 

11 any debt instrument, a cash purchase of the debt in12 strument by— 

13 ‘‘(A) the debtor which issued the debt in14 strument, or 

15 ‘‘(B) any person related to such debtor. 

16 For purposes of subparagraph (B), the determination 

17 of whether a person is related to another person shall 

18 be made in the same manner as under subsection 

19 (e)(4). 

20 ‘‘(4) AUTHORITY TO PRESCRIBE REGULATIONS.— 

21 The Secretary may prescribe such regulations as may 

22 be necessary or appropriate for purposes of applying 

23 this subsection.’’. 
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1 (b) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to discharges in taxable years ending 

3 after December 31, 2008. 

4 PART V—QUALIFIED SMALL BUSINESS STOCK 

5 SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED 

6 SMALL BUSINESS STOCK FOR 2009 AND 2010. 

7 (a) IN GENERAL.—Section 1202(a) is amended by 

8 adding at the end the following new paragraph: 

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

10 case of qualified small business stock acquired after 

11 the date of the enactment of this paragraph and before 

12 January 1, 2011— 

13 ‘‘(A) paragraph (1) shall be applied by sub14 stituting ‘75 percent’ for ‘50 percent’, and 

15 ‘‘(B) paragraph (2) shall not apply.’’. 

16 (b) EFFECTIVE DATE.—The amendment made by this 

17 section shall apply to stock acquired after the date of the 

18 enactment of this Act. 

19 PART VI—PARITY FOR TRANSPORTATION FRINGE 

20 BENEFITS 

21 SEC. 1251. INCREASED EXCLUSION AMOUNT FOR COM22 MUTER TRANSIT BENEFITS AND TRANSIT 

23 PASSES. 

24 (a) IN GENERAL.—Paragraph (2) of section 132(f) is 

25 amended by adding at the end the following flush sentence: 
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1 ‘‘In the case of any month beginning on or after the 

2 date of the enactment of this sentence and before Jan3 uary 1, 2011, subparagraph (A) shall be applied as 

4 if the dollar amount therein were the same as the dol5 lar amount under subparagraph (B) (as in effect for 

6 such month).’’. 

7 (b) EFFECTIVE DATE.—The amendment made by this 

8 section shall apply to months beginning on or after the date 

9 of the enactment of this section. 

10 PART VII—S CORPORATIONS 

11 SEC. 1261. TEMPORARY REDUCTION IN RECOGNITION PE12 RIOD FOR BUILT-IN GAINS TAX. 

13 (a) IN GENERAL.—Paragraph (7) of section 1374(d) 

14 (relating to definitions and special rules) is amended to 

15 read as follows: 

16 ‘‘(7) RECOGNITION PERIOD.— 

17 ‘‘(A) IN GENERAL.—The term ‘recognition 

18 period’ means the 10-year period beginning with 

19 the 1st day of the 1st taxable year for which the 

20 corporation was an S corporation. 

21 ‘‘(B) SPECIAL RULE FOR 2009 AND 2010.—In 

22 the case of any taxable year beginning in 2009 

23 or 2010, no tax shall be imposed on the net un24 recognized built-in gain of an S corporation if 

25 the 7th taxable year in the recognition period 
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1 preceded such taxable year. The preceding sen2 tence shall be applied separately with respect to 

3 any asset to which paragraph (8) applies. 

4 ‘‘(C) SPECIAL RULE FOR DISTRIBUTIONS TO

5 SHAREHOLDERS.—For purposes of applying this 

6 section to any amount includible in income by 

7 reason of distributions to shareholders pursuant 

8 to section 593(e)— 

9 ‘‘(i) subparagraph (A) shall be applied 

10 without regard to the phrase ‘10-year’, and 

11 ‘‘(ii) subparagraph (B) shall not 

12 apply.’’. 

13 (b) EFFECTIVE DATE.—The amendment made by this 

14 section shall apply to taxable years beginning after Decem15 ber 31, 2008. 

16 PART VIII—BROADBAND INCENTIVES 

17 SEC. 1271. BROADBAND INTERNET ACCESS TAX CREDIT. 

18 (a) IN GENERAL.—Subpart E of part IV of chapter 

19 1 of the Internal Revenue Code of 1986 (relating to rules 

20 for computing investment credit), as amended by this Act, 

21 is amended by inserting after section 48C the following new 

22 section: 

23 ‘‘SEC. 48D. BROADBAND INTERNET ACCESS CREDIT. 

24 ‘‘(a) GENERAL RULE.—For purposes of section 46, the 

25 broadband credit for any taxable year is the sum of— 
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1 ‘‘(1) the current generation broadband credit, 

2 plus 

3 ‘‘(2) the next generation broadband credit. 

4 ‘‘(b) CURRENT GENERATION BROADBAND CREDIT; 

5 NEXT GENERATION BROADBAND CREDIT.—For purposes of 

6 this section— 

7 ‘‘(1) CURRENT GENERATION BROADBAND CRED8 IT.—The current generation broadband credit for any 

9 taxable year is equal to 10 percent (20 percent in the 

10 case of qualified subscribers which are unserved sub11 scribers) of the qualified broadband expenditures in12 curred with respect to qualified equipment providing 

13 current generation broadband services to qualified 

14 subscribers and taken into account with respect to 

15 such taxable year. 

16 ‘‘(2) NEXT GENERATION BROADBAND CREDIT.— 

17 The next generation broadband credit for any taxable 

18 year is equal to 20 percent of the qualified broadband 

19 expenditures incurred with respect to qualified equip20 ment providing next generation broadband services to 

21 qualified subscribers and taken into account with re22 spect to such taxable year. 

23 ‘‘(c) WHEN EXPENDITURES TAKEN INTO ACCOUNT.— 

24 For purposes of this section— 
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1 ‘‘(1) IN GENERAL.—Qualified broadband expend2 itures with respect to qualified equipment shall be 

3 taken into account with respect to the first taxable 

4 year in which— 

5 ‘‘(A) current generation broadband services 

6 are provided through such equipment to qualified 

7 subscribers, or 

8 ‘‘(B) next generation broadband services are 

9 provided through such equipment to qualified 

10 subscribers. 

11 ‘‘(2) LIMITATION.— 

12 ‘‘(A) IN GENERAL.—Qualified broadband 

13 expenditures shall be taken into account under 

14 paragraph (1) only with respect to qualified 

15 equipment— 

16 ‘‘(i) the original use of which com17 mences with the taxpayer, and 

18 ‘‘(ii) which is placed in service, after 

19 December 31, 2008, and before January 1, 

20 2011. 

21 ‘‘(B) SALE-LEASEBACKS.—For purposes of 

22 subparagraph (A), if property— 

23 ‘‘(i) is originally placed in service 

24 after December 31, 2008, by any person, 

25 and 
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1 ‘‘(ii) sold and leased back by such per2 son within 3 months after the date such 

3 property was originally placed in service, 

4 such property shall be treated as originally 

5 placed in service not earlier than the date on 

6 which such property is used under the leaseback 

7 referred to in clause (ii). 

8 ‘‘(d) SPECIAL ALLOCATION RULES FOR CURRENT

9 GENERATION BROADBAND SERVICES.—For purposes of de10 termining the current generation broadband credit under 

11 subsection (a)(1) with respect to qualified equipment 

12 through which current generation broadband services are 

13 provided, if the qualified equipment is capable of serving 

14 both qualified subscribers and other subscribers, the quali15 fied broadband expenditures shall be multiplied by a frac16 tion— 

17 ‘‘(1) the numerator of which is the sum of the 

18 number of potential qualified subscribers within the 

19 rural areas and the underserved areas and the 

20 unserved areas which the equipment is capable of 

21 serving with current generation broadband services, 

22 and 

23 ‘‘(2) the denominator of which is the total poten24 tial subscriber population of the area which the 
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1 equipment is capable of serving with current genera2 tion broadband services. 

3 ‘‘(e) DEFINITIONS.—For purposes of this section— 

4 ‘‘(1) ANTENNA.—The term ‘antenna’ means any 

5 device used to transmit or receive signals through the 

6 electromagnetic spectrum, including satellite equip7 ment. 

8 ‘‘(2) CABLE OPERATOR.—The term ‘cable oper9 ator’ has the meaning given such term by section 

10 602(5) of the Communications Act of 1934 (47 U.S.C. 

11 522(5)). 

12 ‘‘(3) COMMERCIAL MOBILE SERVICE CARRIER.— 

13 The term ‘commercial mobile service carrier’ means 

14 any person authorized to provide commercial mobile 

15 radio service as defined in section 20.3 of title 47, 

16 Code of Federal Regulations. 

17 ‘‘(4) CURRENT GENERATION BROADBAND SERV18 ICE.—The term ‘current generation broadband serv19 ice’ means the transmission of signals at a rate of at 

20 least 5,000,000 bits per second to the subscriber and 

21 at least 1,000,000 bits per second from the subscriber 

22 (at least 3,000,000 bits per second to the subscriber 

23 and at least 768,000 bits per second from the sub24 scriber in the case of service through radio trans25 mission of energy). 
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1 ‘‘(5) MULTIPLEXING OR DEMULTIPLEXING.—The 

2 term ‘multiplexing’ means the transmission of 2 or 

3 more signals over a single channel, and the term 

4 ‘demultiplexing’ means the separation of 2 or more 

5 signals previously combined by compatible multi6 plexing equipment. 

7 ‘‘(6) NEXT GENERATION BROADBAND SERVICE.— 

8 The term ‘next generation broadband service’ means 

9 the transmission of signals at a rate of at least 

10 100,000,000 bits per second to the subscriber (or its 

11 equivalent when the data rate is measured before 

12 being compressed for transmission) and at least 

13 20,000,000 bits per second from the subscriber (or its 

14 equivalent as so measured). 

15 ‘‘(7) NONRESIDENTIAL SUBSCRIBER.—The term 

16 ‘nonresidential subscriber’ means any person who 

17 purchases broadband services which are delivered to 

18 the permanent place of business of such person. 

19 ‘‘(8) OPEN VIDEO SYSTEM OPERATOR.—The term 

20 ‘open video system operator’ means any person au21 thorized to provide service under section 653 of the 

22 Communications Act of 1934 (47 U.S.C. 573). 

23 ‘‘(9) OTHER WIRELESS CARRIER.—The term 

24 ‘other wireless carrier’ means any person (other than 

25 a telecommunications carrier, commercial mobile 
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1 service carrier, cable operator, open video system op2 erator, or satellite carrier) providing current genera3 tion broadband services or next generation broadband 

4 service to subscribers through the radio transmission 

5 of energy. 

6 ‘‘(10) PACKET SWITCHING.—The term ‘packet 

7 switching’ means controlling or routing the path of a 

8 digitized transmission signal which is assembled into 

9 packets or cells. 

10 ‘‘(11) PROVIDER.—The term ‘provider’ means, 

11 with respect to any qualified equipment any— 

12 ‘‘(A) cable operator, 

13 ‘‘(B) commercial mobile service carrier, 

14 ‘‘(C) open video system operator, 

15 ‘‘(D) satellite carrier, 

16 ‘‘(E) telecommunications carrier, or 

17 ‘‘(F) other wireless carrier, 

18 providing current generation broadband services or 

19 next generation broadband services to subscribers 

20 through such qualified equipment. 

21 ‘‘(12) PROVISION OF SERVICES.—A provider 

22 shall be treated as providing services to 1 or more 

23 subscribers if— 
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1 ‘‘(A) such a subscriber has been passed by 

2 the provider’s equipment and can be connected to 

3 such equipment for a standard connection fee, 

4 ‘‘(B) the provider is physically able to de5 liver current generation broadband services or 

6 next generation broadband services, as applica7 ble, to such a subscriber without making more 

8 than an insignificant investment with respect to 

9 such subscriber, 

10 ‘‘(C) the provider has made reasonable ef11 forts to make such subscribers aware of the avail12 ability of such services, 

13 ‘‘(D) such services have been purchased by 

14 1 or more such subscribers, and 

15 ‘‘(E) such services are made available to 

16 such subscribers at average prices comparable to 

17 those at which the provider makes available 

18 similar services in any areas in which the pro19 vider makes available such services. 

20 ‘‘(13) QUALIFIED EQUIPMENT.— 

21 ‘‘(A) IN GENERAL.—The term ‘qualified 

22 equipment’ means property with respect to which 

23 depreciation (or amortization in lieu of depre24 ciation) is allowable and which provides current 
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1 generation broadband services or next generation 

2 broadband services— 

3 ‘‘(i) at least a majority of the time 

4 during periods of maximum demand to 

5 each subscriber who is utilizing such serv6 ices, and 

7 ‘‘(ii) in a manner substantially the 

8 same as such services are provided by the 

9 provider to subscribers through equipment 

10 with respect to which no credit is allowed 

11 under subsection (a)(1). 

12 ‘‘(B) ONLY CERTAIN INVESTMENT TAKEN

13 INTO ACCOUNT.—Except as provided in subpara14 graph (C) or (D), equipment shall be taken into 

15 account under subparagraph (A) only to the ex16 tent it— 

17 ‘‘(i) extends from the last point of 

18 switching to the outside of the unit, build19 ing, dwelling, or office owned or leased by 

20 a subscriber in the case of a telecommuni21 cations carrier or broadband-over-powerline 

22 operator, 

23 ‘‘(ii) extends from the customer side of 

24 the mobile telephone switching office to a 

25 transmission/receive antenna (including 
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1 such antenna) owned or leased by a sub2 scriber in the case of a commercial mobile 

3 service carrier, 

4 ‘‘(iii) extends from the customer side of 

5 the headend to the outside of the unit, build6 ing, dwelling, or office owned or leased by 

7 a subscriber in the case of a cable operator 

8 or open video system operator, or 

9 ‘‘(iv) extends from a transmission/re10 ceive antenna (including such antenna) 

11 which transmits and receives signals to or 

12 from multiple subscribers, to a trans13 mission/receive antenna (including such an14 tenna) on the outside of the unit, building, 

15 dwelling, or office owned or leased by a sub16 scriber in the case of a satellite carrier or 

17 other wireless carrier, unless such other 

18 wireless carrier is also a telecommuni19 cations carrier. 

20 ‘‘(C) PACKET SWITCHING EQUIPMENT.— 

21 Packet switching equipment, regardless of loca22 tion, shall be taken into account under subpara23 graph (A) only if it is deployed in connection 

24 with equipment described in subparagraph (B) 

25 and is uniquely designed to perform the function 
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1 of packet switching for current generation 

2 broadband services or next generation broadband 

3 services, but only if such packet switching is the 

4 last in a series of such functions performed in 

5 the transmission of a signal to a subscriber or 

6 the first in a series of such functions performed 

7 in the transmission of a signal from a sub8 scriber. 

9 ‘‘(D) MULTIPLEXING AND DEMULTIPLEXING

10 EQUIPMENT.—Multiplexing and demultiplexing 

11 equipment shall be taken into account under sub12 paragraph (A) only to the extent it is deployed 

13 in connection with equipment described in sub14 paragraph (B) and is uniquely designed to per15 form the function of multiplexing and 

16 demultiplexing packets or cells of data and mak17 ing associated application adaptions, but only if 

18 such multiplexing or demultiplexing equipment 

19 is located between packet switching equipment 

20 described in subparagraph (C) and the sub21 scriber’s premises. 

22 ‘‘(14) QUALIFIED BROADBAND EXPENDITURE.— 

23 ‘‘(A) IN GENERAL.—The term ‘qualified 

24 broadband expenditure’ means any amount— 
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1 ‘‘(i) chargeable to capital account with 

2 respect to the purchase and installation of 

3 qualified equipment (including any up4 grades thereto) for which depreciation is al5 lowable under section 168, and 

6 ‘‘(ii) incurred after December 31, 2008, 

7 and before January 1, 2011. 

8 ‘‘(B) CERTAIN SATELLITE EXPENDITURES

9 EXCLUDED.—Such term shall not include any 

10 expenditure with respect to the launching of any 

11 satellite equipment. 

12 ‘‘(C) LEASED EQUIPMENT.—Such term shall 

13 include so much of the purchase price paid by 

14 the lessor of equipment subject to a lease de15 scribed in subsection (c)(2)(B) as is attributable 

16 to expenditures incurred by the lessee which 

17 would otherwise be described in subparagraph 

18 (A). 

19 ‘‘(15) QUALIFIED SUBSCRIBER.—The term 

20 ‘qualified subscriber’ means— 

21 ‘‘(A) with respect to the provision of current 

22 generation broadband services— 

23 ‘‘(i) any nonresidential subscriber 

24 maintaining a permanent place of business 
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1 in a rural area, an underserved area, or an 

2 unserved area, or 

3 ‘‘(ii) any residential subscriber resid4 ing in a dwelling located in a rural area, 

5 an underserved area, or an unserved area 

6 which is not a saturated market, and 

7 ‘‘(B) with respect to the provision of next 

8 generation broadband services— 

9 ‘‘(i) any nonresidential subscriber 

10 maintaining a permanent place of business 

11 in a rural area, an underserved area, or an 

12 unserved area , or 

13 ‘‘(ii) any residential subscriber. 

14 ‘‘(16) RESIDENTIAL SUBSCRIBER.—The term 

15 ‘residential subscriber’ means any individual who 

16 purchases broadband services which are delivered to 

17 such individual’s dwelling. 

18 ‘‘(17) RURAL AREA.—The term ‘rural area’ 

19 means any census tract which— 

20 ‘‘(A) is not within 10 miles of any incor21 porated or census designated place containing 

22 more than 25,000 people, and 

23 ‘‘(B) is not within a county or county 

24 equivalent which has an overall population den-
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1 sity of more than 500 people per square mile of 

2 land. 

3 ‘‘(18) RURAL SUBSCRIBER.—The term ‘rural 

4 subscriber’ means any residential subscriber residing 

5 in a dwelling located in a rural area or nonresiden6 tial subscriber maintaining a permanent place of 

7 business located in a rural area. 

8 ‘‘(19) SATELLITE CARRIER.—The term ‘satellite 

9 carrier’ means any person using the facilities of a 

10 satellite or satellite service licensed by the Federal 

11 Communications Commission and operating in the 

12 Fixed-Satellite Service under part 25 of title 47 of the 

13 Code of Federal Regulations or the Direct Broadcast 

14 Satellite Service under part 100 of title 47 of such 

15 Code to establish and operate a channel of commu16 nications for distribution of signals, and owning or 

17 leasing a capacity or service on a satellite in order 

18 to provide such point-to-multipoint distribution. 

19 ‘‘(20) SATURATED MARKET.—The term ‘satu20 rated market’ means any census tract in which, as of 

21 the date of the enactment of this section— 

22 ‘‘(A) current generation broadband services 

23 have been provided by a single provider to 85 

24 percent or more of the total number of potential 
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1 residential subscribers residing in dwellings lo2 cated within such census tract, and 

3 ‘‘(B) such services can be utilized— 

4 ‘‘(i) at least a majority of the time 

5 during periods of maximum demand by 

6 each such subscriber who is utilizing such 

7 services, and 

8 ‘‘(ii) in a manner substantially the 

9 same as such services are provided by the 

10 provider to subscribers through equipment 

11 with respect to which no credit is allowed 

12 under subsection (a)(1). 

13 ‘‘(21) SUBSCRIBER.—The term ‘subscriber’ 

14 means any person who purchases current generation 

15 broadband services or next generation broadband serv16 ices. 

17 ‘‘(22) TELECOMMUNICATIONS CARRIER.—The 

18 term ‘telecommunications carrier’ has the meaning 

19 given such term by section 3(44) of the Communica20 tions Act of 1934 (47 U.S.C. 153(44)), but— 

21 ‘‘(A) includes all members of an affiliated 

22 group of which a telecommunications carrier is 

23 a member, and 

24 ‘‘(B) does not include any commercial mo25 bile service carrier. 
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1 ‘‘(23) TOTAL POTENTIAL SUBSCRIBER POPU2 LATION.—The term ‘total potential subscriber popu3 lation’ means, with respect to any area and based on 

4 the most recent census data, the total number of po5 tential residential subscribers residing in dwellings 

6 located in such area and potential nonresidential sub7 scribers maintaining permanent places of business lo8 cated in such area. 

9 ‘‘(24) UNDERSERVED AREA.—The term ‘under10 served area’ means any census tract which is located 

11 in— 

12 ‘‘(A) an empowerment zone or enterprise 

13 community designated under section 1391, 

14 ‘‘(B) the District of Columbia Enterprise 

15 Zone established under section 1400, 

16 ‘‘(C) a renewal community designated 

17 under section 1400E, or 

18 ‘‘(D) a low-income community designated 

19 under section 45D. 

20 ‘‘(25) UNDERSERVED SUBSCRIBER.—The term 

21 ‘underserved subscriber’ means any residential sub22 scriber residing in a dwelling located in an under23 served area or nonresidential subscriber maintaining 

24 a permanent place of business located in an under25 served area. 
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1 ‘‘(26) UNSERVED AREA.—The term ‘unserved 

2 area’ means any census tract in which no current 

3 generation broadband services are provided, as cer4 tified by the State in which such tract is located not 

5 later than September 30, 2009. 

6 ‘‘(27) UNSERVED SUBSCRIBER.—The term 

7 ‘unserved subscriber’ means any residential subscriber 

8 residing in a dwelling located in an unserved area or 

9 nonresidential subscriber maintaining a permanent 

10 place of business located in an unserved area.’’. 

11 (b) CREDIT TO BE PART OF INVESTMENT CREDIT.— 

12 Section 46 (relating to the amount of investment credit), 

13 as amended by this Act, is amended by striking ‘‘and’’ at 

14 the end of paragraph (4), by striking the period at the end 

15 of paragraph (5) and inserting ‘‘, and’’, and by adding at 

16 the end the following: 

17 ‘‘(6) the broadband Internet access credit.’’ 

18 (c) SPECIAL RULE FOR MUTUAL OR COOPERATIVE

19 TELEPHONE COMPANIES.—Section 501(c)(12)(B) (relating 

20 to list of exempt organizations) is amended by striking ‘‘or’’ 

21 at the end of clause (iii), by striking the period at the end 

22 of clause (iv) and inserting ‘‘, or’’, and by adding at the 

23 end the following new clause: 

24 ‘‘(v) from the sale of property subject to 

25 a lease described in section 48D(c)(2)(B), 
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1 but only to the extent such income does not 

2 in any year exceed an amount equal to the 

3 credit for qualified broadband expenditures 

4 which would be determined under section 

5 48D for such year if the mutual or coopera6 tive telephone company was not exempt 

7 from taxation and was treated as the owner 

8 of the property subject to such lease.’’. 

9 (d) CONFORMING AMENDMENTS.— 

10 (1) Section 49(a)(1)(C), as amended by this Act, 

11 is amended by striking ‘‘and’’ at the end of clause 

12 (iv), by striking the period at the end of clause (v) 

13 and inserting ‘‘, and’’, and by adding after clause (v) 

14 the following new clause: 

15 ‘‘(vi) the portion of the basis of any 

16 qualified equipment attributable to quali17 fied broadband expenditures under section 

18 48D.’’. 

19 (2) The table of sections for subpart E of part IV 

20 of subchapter A of chapter 1, as amended by this Act, 

21 is amended by inserting after the item relating to sec22 tion 48C the following: 

‘‘Sec. 48D. Broadband internet access credit’’. 

23 (e) DESIGNATION OF CENSUS TRACTS.— 

24 (1) IN GENERAL.—The Secretary of the Treasury 

25 shall, not later than 90 days after the date of the en-
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1 actment of this Act, designate and publish those cen2 sus tracts meeting the criteria described in para3 graphs (17), (23), (24), and (26) of section 48D(e) of 

4 the Internal Revenue Code of 1986 (as added by this 

5 section). In making such designations, the Secretary 

6 of the Treasury shall consult with such other depart7 ments and agencies as the Secretary determines ap8 propriate. 

9 (2) SATURATED MARKET.— 

10 (A) IN GENERAL.—For purposes of desig11 nating and publishing those census tracts meet12 ing the criteria described in subsection (e)(20) of 

13 such section 48D— 

14 (i) the Secretary of the Treasury shall 

15 prescribe not later than 30 days after the 

16 date of the enactment of this Act the form 

17 upon which any provider which takes the 

18 position that it meets such criteria with re19 spect to any census tract shall submit a list 

20 of such census tracts (and any other infor21 mation required by the Secretary) not later 

22 than 60 days after the date of the publica23 tion of such form, and 

24 (ii) the Secretary of the Treasury shall 

25 publish an aggregate list of such census 
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1 tracts submitted and the applicable pro2 viders not later than 30 days after the last 

3 date such submissions are allowed under 

4 clause (i). 

5 (B) NO SUBSEQUENT LISTS REQUIRED.— 

6 The Secretary of the Treasury shall not be re7 quired to publish any list of census tracts meet8 ing such criteria subsequent to the list described 

9 in subparagraph (A)(ii). 

10 (C) AUTHORITY TO DISREGARD FALSE SUB11 MISSIONS.—In addition to imposing any other 

12 applicable penalties, the Secretary of the Treas13 ury shall have the discretion to disregard any 

14 form described in subparagraph (A)(i) on which 

15 a provider knowingly submitted false informa16 tion. 

17 (f) OTHER REGULATORY MATTERS.— 

18 (1) PROHIBITION.—No Federal or State agency 

19 or instrumentality shall adopt regulations or rate20 making procedures that would have the effect of elimi21 nating or reducing any credit or portion thereof al22 lowed under section 48D of the Internal Revenue Code 

23 of 1986 (as added by this section) or otherwise sub24 verting the purpose of this section. 
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1 (2) TREASURY REGULATORY AUTHORITY.—It is 

2 the intent of Congress in providing the broadband 

3 Internet access credit under section 48D of the Inter4 nal Revenue Code of 1986 (as added by this section) 

5 to provide incentives for the purchase, installation, 

6 and connection of equipment and facilities offering 

7 expanded broadband access to the Internet for users 

8 in certain low income and rural areas of the United 

9 States, as well as to residential users nationwide, in 

10 a manner that maintains competitive neutrality 

11 among the various classes of providers of broadband 

12 services. Accordingly, the Secretary of the Treasury 

13 shall prescribe such regulations as may be necessary 

14 or appropriate to carry out the purposes of section 

15 48D of such Code, including— 

16 (A) regulations to determine how and when 

17 a taxpayer that incurs qualified broadband ex18 penditures satisfies the requirements of section 

19 48D of such Code to provide broadband services, 

20 and 

21 (B) regulations describing the information, 

22 records, and data taxpayers are required to pro23 vide the Secretary to substantiate compliance 

24 with the requirements of section 48D of such 

25 Code. 
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1 (g) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to expenditures incurred after December 

3 31, 2008. 

4 PART IX—CLARIFICATION OF REGULATIONS RE5 LATED TO LIMITATIONS ON CERTAIN BUILT6 IN LOSSES FOLLOWING AN OWNERSHIP 

7 CHANGE 

8 SEC. 1281. CLARIFICATION OF REGULATIONS RELATED TO 

9 LIMITATIONS ON CERTAIN BUILT-IN LOSSES 

10 FOLLOWING AN OWNERSHIP CHANGE. 

11 (a) FINDINGS.—Congress finds as follows: 

12 (1) The delegation of authority to the Secretary 

13 of the Treasury under section 382(m) of the Internal 

14 Revenue Code of 1986 does not authorize the Sec15 retary to provide exemptions or special rules that are 

16 restricted to particular industries or classes of tax17 payers. 

18 (2) Internal Revenue Service Notice 2008–83 is 

19 inconsistent with the congressional intent in enacting 

20 such section 382(m). 

21 (3) The legal authority to prescribe Internal Rev22 enue Service Notice 2008–83 is doubtful. 

23 (4) However, as taxpayers should generally be 

24 able to rely on guidance issued by the Secretary of the 

25 Treasury legislation is necessary to clarify the force 
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1 and effect of Internal Revenue Service Notice 2008– 

2 83 and restore the proper application under the Inter3 nal Revenue Code of 1986 of the limitation on built4 in losses following an ownership change of a bank. 

5 (b) DETERMINATION OF FORCE AND EFFECT OF IN6 TERNAL REVENUE SERVICE NOTICE 2008–83 EXEMPTING

7 BANKS FROM LIMITATION ON CERTAIN BUILT–IN LOSSES

8 FOLLOWING OWNERSHIP CHANGE.— 

9 (1) IN GENERAL.—Internal Revenue Service No10 tice 2008–83— 

11 (A) shall be deemed to have the force and ef12 fect of law with respect to any ownership change 

13 (as defined in section 382(g) of the Internal Rev14 enue Code of 1986) occurring on or before Janu15 ary 16, 2009, and 

16 (B) shall have no force or effect with respect 

17 to any ownership change after such date. 

18 (2) BINDING CONTRACTS.—Notwithstanding 

19 paragraph (1), Internal Revenue Service Notice 

20 2008–83 shall have the force and effect of law with re21 spect to any ownership change (as so defined) which 

22 occurs after January 16, 2009, if such change— 

23 (A) is pursuant to a written binding con24 tract entered into on or before such date, or 
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1 (B) is pursuant to a written agreement en2 tered into on or before such date and such agree3 ment was described on or before such date in a 

4 public announcement or in a filing with the Se5 curities and Exchange Commission required by 

6 reason of such ownership change. 

7 Subtitle D—Manufacturing 

8 Recovery Provisions 

9 SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF IN10 DUSTRIAL DEVELOPMENT BONDS TO FACILI11 TIES MANUFACTURING INTANGIBLE PROP12 ERTY. 

13 (a) IN GENERAL.—Subparagraph (C) of section 

14 144(a)(12) is amended— 

15 (1) by striking ‘‘For purposes of this paragraph, 

16 the term’’ and inserting ‘‘For purposes of this para17 graph— 

18 ‘‘(i) IN GENERAL.—The term’’, and 

19 (2) by striking the last sentence and inserting 

20 the following new clauses: 

21 ‘‘(ii) CERTAIN FACILITIES IN22 CLUDED.—Such term includes facilities 

23 which are directly related and ancillary to 

24 a manufacturing facility (determined with25 out regard to this clause) if— 
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1 ‘‘(I) such facilities are located on 

2 the same site as the manufacturing fa3 cility, and 

4 ‘‘(II) not more than 25 percent of 

5 the net proceeds of the issue are used to 

6 provide such facilities. 

7 ‘‘(iii) SPECIAL RULES FOR BONDS

8 ISSUED IN 2009 AND 2010.—In the case of 

9 any issue made after the date of enactment 

10 of this clause and before January 1, 2011, 

11 clause (ii) shall not apply and the net pro12 ceeds from a bond shall be considered to be 

13 used to provide a manufacturing facility if 

14 such proceeds are used to provide— 

15 ‘‘(I) a facility which is used in 

16 the creation or production of intangible 

17 property which is described in section 

18 197(d)(1)(C)(iii), or 

19 ‘‘(II) a facility which is function20 ally related and subordinate to a man21 ufacturing facility (determined without 

22 regard to this subclause) if such facil23 ity is located on the same site as the 

24 manufacturing facility.’’. 
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1 (b) EFFECTIVE DATE.—The amendments made by this 

2 section shall apply to bonds issued after the date of the en3 actment of this Act. 

4 SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED EN5 ERGY FACILITIES. 

6 (a) IN GENERAL.—Section 46 (relating to amount of 

7 credit) is amended by striking ‘‘and’’ at the end of para8 graph (3), by striking the period at the end of paragraph 

9 (4), and by adding at the end the following new paragraph: 

10 ‘‘(5) the qualifying advanced energy project cred11 it.’’. 

12 (b) AMOUNT OF CREDIT.—Subpart E of part IV of 

13 subchapter A of chapter 1 (relating to rules for computing 

14 investment credit) is amended by inserting after section 

15 48B the following new section: 

16 ‘‘SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT 

17 CREDIT. 

18 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

19 qualifying advanced energy project credit for any taxable 

20 year is an amount equal to 30 percent of the qualified in21 vestment for such taxable year with respect to any quali22 fying advanced energy project of the taxpayer. 

23 ‘‘(b) QUALIFIED INVESTMENT.— 

24 ‘‘(1) IN GENERAL.—For purposes of subsection 

25 (a), the qualified investment for any taxable year is 
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1 the basis of eligible property placed in service by the 

2 taxpayer during such taxable year which is part of 

3 a qualifying advanced energy project— 

4 ‘‘(A)(i) the construction, reconstruction, or 

5 erection of which is completed by the taxpayer 

6 after October 31, 2008, or 

7 ‘‘(ii) which is acquired by the taxpayer if 

8 the original use of such eligible property com9 mences with the taxpayer after October 31, 2008, 

10 and 

11 ‘‘(B) with respect to which depreciation (or 

12 amortization in lieu of depreciation) is allow13 able. 

14 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI15 TURES RULES MADE APPLICABLE.—Rules similar to 

16 the rules of subsections (c)(4) and (d) of section 46 (as 

17 in effect on the day before the enactment of the Rev18 enue Reconciliation Act of 1990) shall apply for pur19 poses of this section. 

20 ‘‘(3) LIMITATION.—The amount which is treated 

21 for all taxable years with respect to any qualifying 

22 advanced energy project shall not exceed the amount 

23 designated by the Secretary as eligible for the credit 

24 under this section. 

25 ‘‘(c) DEFINITIONS.— 
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1 ‘‘(1) QUALIFYING ADVANCED ENERGY

2 PROJECT.— 

3 ‘‘(A) IN GENERAL.—The term ‘qualifying 

4 advanced energy project’ means a project— 

5 ‘‘(i) which re-equips, expands, or estab6 lishes a manufacturing facility for the pro7 duction of property which is— 

8 ‘‘(I) designed to be used to 

9 produce energy from the sun, wind, 

10 geothermal deposits (within the mean11 ing of section 613(e)(2)), or other re12 newable resources, 

13 ‘‘(II) designed to manufacture fuel 

14 cells, microturbines, or an energy stor15 age system for use with electric or hy16 brid-electric motor vehicles, 

17 ‘‘(III) designed to manufacture 

18 electric grids to support the trans19 mission of intermittent sources of re20 newable energy, including storage of 

21 such energy, 

22 ‘‘(IV) designed to capture and se23 quester carbon dioxide emissions, 

24 ‘‘(V) designed to refine or blend 

25 renewable fuels or to produce energy 
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1 conservation technologies (including 

2 energy-conserving lighting technologies 

3 and smart grid technologies), or 

4 ‘‘(VI) other advanced energy prop5 erty designed to reduce greenhouse gas 

6 emissions as may be determined by the 

7 Secretary, and 

8 ‘‘(ii) any portion of the qualified in9 vestment of which is certified by the Sec10 retary under subsection (d) as eligible for a 

11 credit under this section. 

12 ‘‘(B) EXCEPTION.—Such term shall not in13 clude any portion of a project for the production 

14 of any property which is used in the refining or 

15 blending of any transportation fuel (other than 

16 renewable fuels). 

17 ‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligible 

18 property’ means any property which is part of a 

19 qualifying advanced energy project and is necessary 

20 for the production of property described in paragraph 

21 (1)(A)(i). 

22 ‘‘(d) QUALIFYING ADVANCED ENERGY PROJECT PRO23 GRAM.— 

24 ‘‘(1) ESTABLISHMENT.— 
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1 ‘‘(A) IN GENERAL.—Not later than 180 

2 days after the date of enactment of this section, 

3 the Secretary, in consultation with the Secretary 

4 of Energy, shall establish a qualifying advanced 

5 energy project program to consider and award 

6 certifications for qualified investments eligible 

7 for credits under this section to qualifying ad8 vanced energy project sponsors. 

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

10 credits that may be allocated under the program 

11 shall not exceed $2,000,000,000. 

12 ‘‘(2) CERTIFICATION.— 

13 ‘‘(A) APPLICATION PERIOD.—Each appli14 cant for certification under this paragraph shall 

15 submit an application containing such informa16 tion as the Secretary may require during the 3- 

17 year period beginning on the date the Secretary 

18 establishes the program under paragraph (1). 

19 ‘‘(B) TIME TO MEET CRITERIA FOR CER20 TIFICATION.—Each applicant for certification 

21 shall have 2 years from the date of acceptance by 

22 the Secretary of the application during which to 

23 provide to the Secretary evidence that the re24 quirements of the certification have been met. 
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1 ‘‘(C) PERIOD OF ISSUANCE.—An applicant 

2 which receives a certification shall have 5 years 

3 from the date of issuance of the certification in 

4 order to place the project in service and if such 

5 project is not placed in service by that time pe6 riod then the certification shall no longer be 

7 valid. 

8 ‘‘(3) SELECTION CRITERIA.—In determining 

9 which qualifying advanced energy projects to certify 

10 under this section, the Secretary— 

11 ‘‘(A) shall take into consideration only those 

12 projects where there is a reasonable expectation 

13 of commercial viability, and 

14 ‘‘(B) shall take into consideration which 

15 projects— 

16 ‘‘(i) will provide the greatest domestic 

17 job creation (both direct and indirect) dur18 ing the credit period, 

19 ‘‘(ii) will provide the greatest net im20 pact in avoiding or reducing air pollutants 

21 or anthropogenic emissions of greenhouse 

22 gases, 

23 ‘‘(iii) have the greatest readiness for 

24 commercial employment, replication, and 
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1 further commercial use in the United 

2 States, 

3 ‘‘(iv) will provide the greatest benefit 

4 in terms of newness in the commercial mar5 ket, 

6 ‘‘(v) have the lowest levelized cost of 

7 generated or stored energy, or of measured 

8 reduction in energy consumption or green9 house gas emission (based on costs of the 

10 full supply chain), and 

11 ‘‘(vi) have the shortest project time 

12 from certification to completion. 

13 ‘‘(4) REVIEW AND REDISTRIBUTION.— 

14 ‘‘(A) REVIEW.—Not later than 6 years after 

15 the date of enactment of this section, the Sec16 retary shall review the credits allocated under 

17 this section as of the date which is 6 years after 

18 the date of enactment of this section. 

19 ‘‘(B) REDISTRIBUTION.—The Secretary 

20 may reallocate credits awarded under this sec21 tion if the Secretary determines that— 

22 ‘‘(i) there is an insufficient quantity of 

23 qualifying applications for certification 

24 pending at the time of the review, or 
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1 ‘‘(ii) any certification made pursuant 

2 to paragraph (2) has been revoked pursuant 

3 to paragraph (2)(B) because the project sub4 ject to the certification has been delayed as 

5 a result of third party opposition or litiga6 tion to the proposed project. 

7 ‘‘(C) REALLOCATION.—If the Secretary de8 termines that credits under this section are 

9 available for reallocation pursuant to the re10 quirements set forth in paragraph (2), the Sec11 retary is authorized to conduct an additional 

12 program for applications for certification. 

13 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec14 retary shall, upon making a certification under this 

15 subsection, publicly disclose the identity of the appli16 cant and the amount of the credit with respect to such 

17 applicant. 

18 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—A credit shall not 

19 be allowed under this section for any qualified investment 

20 for which a credit is allowed under section 48, 48A, or 

21 48B.’’. 

22 (c) CONFORMING AMENDMENTS.— 

23 (1) Section 49(a)(1)(C) is amended by striking 

24 ‘‘and’’ at the end of clause (iii), by striking the period 
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1 at the end of clause (iv) and inserting ‘‘, and’’, and 

2 by adding after clause (iv) the following new clause: 

3 ‘‘(v) the basis of any property which is 

4 part of a qualifying advanced energy 

5 project under section 48C.’’. 

6 (2) The table of sections for subpart E of part IV 

7 of subchapter A of chapter 1 is amended by inserting 

8 after the item relating to section 48B the following 

9 new item: 

‘‘48C. Qualifying advanced energy project credit.’’. 

10 (d) EFFECTIVE DATE.—The amendments made by this 

11 section shall apply to periods after the date of the enactment 

12 of this Act, under rules similar to the rules of section 48(m) 

13 of the Internal Revenue Code of 1986 (as in effect on the 

14 day before the date of the enactment of the Revenue Rec15 onciliation Act of 1990). 

16 SEC. 1303. INCENTIVES FOR MANUFACTURING FACILITIES 

17 PRODUCING PLUG-IN ELECTRIC DRIVE 

18 MOTOR VEHICLES AND COMPONENTS. 

19 (a) DEDUCTION FOR MANUFACTURING FACILITIES.— 

20 Part VI of subchapter B of chapter 1 (relating to itemized 

21 deductions for individuals and corporations) is amended by 

22 inserting after section 179E the following new section: 
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1 ‘‘SEC. 179F. ELECTION TO EXPENSE MANUFACTURING FA2 CILITIES PRODUCING PLUG-IN ELECTRIC 

3 DRIVE MOTOR VEHICLES AND COMPONENTS. 

4 ‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 

5 elect to treat the applicable percentage of the cost of any 

6 qualified plug-in electric drive motor vehicle manufacturing 

7 facility property as an expense which is not chargeable to 

8 a capital account. Any cost so treated shall be allowed as 

9 a deduction for the taxable year in which the qualified man10 ufacturing facility property is placed in service. 

11 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of sub12 section (a), the applicable percentage is— 

13 ‘‘(1) 100 percent, in the case of qualified plug14 in electric drive motor vehicle manufacturing facility 

15 property which is placed in service before January 1, 

16 2012, and 

17 ‘‘(2) 50 percent, in the case of qualified plug-in 

18 electric drive motor vehicle manufacturing facility 

19 property which is placed in service after December 31, 

20 2011, and before January 1, 2015. 

21 ‘‘(c) ELECTION.— 

22 ‘‘(1) IN GENERAL.—An election under this sec23 tion for any taxable year shall be made on the tax24 payer’s return of the tax imposed by this chapter for 

25 the taxable year. Such election shall be made in such 
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1 manner as the Secretary may by regulations pre2 scribe. 

3 ‘‘(2) ELECTION IRREVOCABLE.—Any election 

4 made under this section may not be revoked except 

5 with the consent of the Secretary. 

6 ‘‘(d) QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR

7 VEHICLE MANUFACTURING FACILITY PROPERTY.—For 

8 purposes of this section— 

9 ‘‘(1) IN GENERAL.—The term ‘qualified plug-in 

10 electric drive motor vehicle manufacturing facility 

11 property’ means any qualified property— 

12 ‘‘(A) the original use of which commences 

13 with the taxpayer, 

14 ‘‘(B) which is placed in service by the tax15 payer after the date of the enactment of this sec16 tion and before January 1, 2015, and 

17 ‘‘(C) no written binding contract for the 

18 construction of which was in effect on or before 

19 the date of the enactment of this section. 

20 ‘‘(2) QUALIFIED PROPERTY.— 

21 ‘‘(A) IN GENERAL.—The term ‘qualified 

22 property’ means any property which is a facility 

23 or a portion of a facility used for the production 

24 of— 
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1 ‘‘(i) any new qualified plug-in electric 

2 drive motor vehicle (as defined by section 

3 30D(c)), or 

4 ‘‘(ii) any eligible component. 

5 ‘‘(B) ELIGIBLE COMPONENT.—The term ‘eli6 gible component’ means any battery, any electric 

7 motor or generator, or any power control unit 

8 which is designed specifically for use with a new 

9 qualified plug-in electric drive motor vehicle (as 

10 so defined). 

11 ‘‘(e) SPECIAL RULE FOR DUAL USE PROPERTY.—In 

12 the case of any qualified plug-in electric drive motor vehicle 

13 manufacturing facility property which is used to produce 

14 both qualified property and other property which is not 

15 qualified property, the amount of costs taken into account 

16 under subsection (a) shall be reduced by an amount equal 

17 to— 

18 ‘‘(1) the total amount of such costs (determined 

19 before the application of this subsection), multiplied 

20 by 

21 ‘‘(2) the percentage of property expected to be 

22 produced which is not qualified property. 

23 ‘‘(f) ELECTION TO RECEIVE LOAN IN LIEU OF DEDUC24 TION.— 
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1 ‘‘(1) IN GENERAL.—If a taxpayer elects to have 

2 this subsection apply for any taxable year— 

3 ‘‘(A) subsection (a) shall not apply to any 

4 qualified plug-in electric drive motor vehicle 

5 manufacturing facility property placed in serv6 ice by the taxpayer, 

7 ‘‘(B) such taxpayer shall receive a loan 

8 from the Secretary in an amount and under 

9 such terms as provided in section 1303(b) of the 

10 American Recovery and Reinvestment Tax Act of 

11 2009, and 

12 ‘‘(C) in the taxable year in which such 

13 qualified loan is repaid, each of the limitations 

14 described in paragraph (2) shall be increased by 

15 the qualified plug-in electric drive motor vehicle 

16 manufacturing facility amount which is— 

17 ‘‘(i) determined under paragraph (3), 

18 and 

19 ‘‘(ii) allocated to such limitation under 

20 paragraph (4). 

21 ‘‘(2) LIMITATIONS TO BE INCREASED.—The limi22 tations described in this paragraph are— 

23 ‘‘(A) the limitation imposed by section 

24 38(c), and 
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1 ‘‘(B) the limitation imposed by section 

2 53(c). 

3 ‘‘(3) QUALIFIED PLUG-IN ELECTRIC DRIVE

4 MOTOR VEHICLE MANUFACTURING FACILITY

5 AMOUNT.—For purposes of this paragraph— 

6 ‘‘(A) IN GENERAL.—The qualified plug-in 

7 electric drive motor vehicle manufacturing facil8 ity amount is an amount equal to the applicable 

9 percentage of any qualified plug-in electric drive 

10 motor vehicle manufacturing facility which is 

11 placed in service during the taxable year. 

12 ‘‘(B) APPLICABLE PERCENTAGE.—For pur13 poses of subparagraph (A), the applicable per14 centage is— 

15 ‘‘(i) 35 percent, in the case of qualified 

16 plug-in electric drive motor vehicle manu17 facturing facility property which is placed 

18 in service before January 1, 2012, and 

19 ‘‘(ii) 17.5 percent, in the case of quali20 fied plug-in electric drive motor vehicle 

21 manufacturing facility property which is 

22 placed in service after December 31, 2011, 

23 and before January 1, 2015. 

24 ‘‘(C) SPECIAL RULE FOR DUAL USE PROP25 ERTY.—In the case of any qualified plug-in elec-
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1 tric drive motor vehicle manufacturing facility 

2 property which is used to produce both qualified 

3 property and other property which is not quali4 fied property, the amount of costs taken into ac5 count under subparagraph (A) shall be reduced 

6 by an amount equal to— 

7 ‘‘(i) the total amount of such costs (de8 termined before the application of this sub9 paragraph), multiplied by 

10 ‘‘(ii) the percentage of property ex11 pected to be produced which is not qualified 

12 property. 

13 ‘‘(4) ALLOCATION OF QUALIFIED PLUG-IN ELEC14 TRIC DRIVE MOTOR VEHICLE MANUFACTURING FACIL15 ITY AMOUNT.—The taxpayer shall, at such time and 

16 in such manner as the Secretary may prescribe, speci17 fy the portion (if any) of the qualified plug-in electric 

18 drive motor vehicle manufacturing facility amount 

19 for the taxable year which is to be allocated to each 

20 of the limitations described in paragraph (2) for such 

21 taxable year. 

22 ‘‘(5) ELECTION.— 

23 ‘‘(A) IN GENERAL.—An election under this 

24 subsection for any taxable year shall be made on 

25 the taxpayer’s return of the tax imposed by this 
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1 chapter for the taxable year. Such election shall 

2 be made in such manner as the Secretary may 

3 by regulations prescribe. 

4 ‘‘(B) ELECTION IRREVOCABLE.—Any elec5 tion made under this subsection may not be re6 voked except with the consent of the Secretary.’’. 

7 (b) LOAN PROGRAM.— 

8 (1) IN GENERAL.—The Secretary of the Treasury 

9 (or the Secretary’s delegate) shall provide a loan to 

10 any person who is allowed a deduction under section 

11 179F of the Internal Revenue Code and who makes an 

12 election under section 179F(f) of such Code in an 

13 amount equal to the qualified plug-in electric drive 

14 motor vehicle manufacturing facility amount (as de15 fined in such section 179F(f)). 

16 (2) TERM.—Such loan shall be in the form of a 

17 senior note issued by the taxpayer to the Secretary of 

18 the Treasury, secured by the qualified plug-in electric 

19 drive motor vehicle manufacturing facility property 

20 (as defined in section 179F of the Internal Revenue 

21 Code of 1986) of the taxpayer, and having a term of 

22 20 years and interest payable at the applicable Fed23 eral rate (as determined under section 1274(d) of the 

24 Internal Revenue Code of 1986). 
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1 (3) APPROPRIATIONS.—There is hereby appro2 priated to the Secretary of the Treasury such sums as 

3 may be necessary to carry out this subsection. 

4 (c) CLERICAL AMENDMENT.—The table of sections for 

5 part VI of subchapter B of chapter 1 is amended by adding 

6 at the end the following new item: 

‘‘Sec. 179F. Election to expense manufacturing facilities producing plug-in electric drive motor vehicle and components.’’. 

7 (d) EFFECTIVE DATE.—The amendments made by this 

8 section shall apply to taxable years beginning after the date 

9 of the enactment of this Act. 

10 Subtitle E—Economic Recovery 

11 Tools 

12 SEC. 1401. RECOVERY ZONE BONDS. 

13 (a) IN GENERAL.—Subchapter Y of chapter 1 is 

14 amended by adding at the end the following new part: 

15 ‘‘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. 

16 ‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. 

17 ‘‘(a) ALLOCATIONS.— 

18 ‘‘(1) IN GENERAL.—The Secretary shall allocate 

19 the national recovery zone economic development bond 

20 limitation and the national recovery zone facility 

21 bond limitation among the States— 
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1 ‘‘(A) by allocating 1 percent of each such 

2 limitation to each State, and 

3 ‘‘(B) by allocating the remainder of each 

4 such limitation among the States in the propor5 tion that each State’s 2008 State employment de6 cline bears to the aggregate of the 2008 State em7 ployment declines for all of the States. 

8 ‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For 

9 purposes of this subsection, the term ‘2008 State em10 ployment decline’ means, with respect to any State, 

11 the excess (if any) of— 

12 ‘‘(A) the number of individuals employed in 

13 such State determined for December 2007, over 

14 ‘‘(B) the number of individuals employed in 

15 such State determined for December 2008. 

16 ‘‘(3) ALLOCATIONS BY STATES.— 

17 ‘‘(A) IN GENERAL.—Each State with respect 

18 to which an allocation is made under paragraph 

19 (1) shall reallocate such allocation among the 

20 counties and large municipalities in such State 

21 in the proportion the each such county’s or mu22 nicipality’s 2008 employment decline bears to 

23 the aggregate of the 2008 employment declines 

24 for all the counties and municipalities in such 

25 State. 
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1 ‘‘(B) LARGE MUNICIPALITIES.—For pur2 poses of subparagraph (A), the term ‘large mu3 nicipality’ means a municipality with a popu4 lation of more than 100,000. 

5 ‘‘(C) DETERMINATION OF LOCAL EMPLOY6 MENT DECLINES.—For purposes of this para7 graph, the employment decline of any munici8 pality or county shall be determined in the same 

9 manner as determining the State employment 

10 decline under paragraph (2), except that in the 

11 case of a municipality any portion of which is 

12 in a county, such portion shall be treated as part 

13 of such municipality and not part of such coun14 ty. 

15 ‘‘(4) NATIONAL LIMITATIONS.— 

16 ‘‘(A) RECOVERY ZONE ECONOMIC DEVELOP17 MENT BONDS.—There is a national recovery zone 

18 economic development bond limitation of 

19 $5,000,000,000. 

20 ‘‘(B) RECOVERY ZONE FACILITY BONDS.— 

21 There is a national recovery zone facility bond 

22 limitation of $10,000,000,000. 

23 ‘‘(b) RECOVERY ZONE.—For purposes of this part, the 

24 term ‘recovery zone’ means— 
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1 ‘‘(1) any area designated by the issuer as having 

2 significant poverty, unemployment, rate of home fore3 closures, or general distress, and 

4 ‘‘(2) any area for which a designation as an em5 powerment zone or renewal community is in effect. 

6 ‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT 

7 BONDS. 

8 ‘‘(a) IN GENERAL.—In the case of a recovery zone eco9 nomic development bond— 

10 ‘‘(1) such bond shall be treated as a qualified 

11 bond for purposes of section 6431, and 

12 ‘‘(2) subsection (b) of such section shall be ap13 plied by substituting ‘40 percent’ for ‘35 percent’. 

14 ‘‘(b) RECOVERY ZONE ECONOMIC DEVELOPMENT

15 BOND.— 

16 ‘‘(1) IN GENERAL.—For purposes of this section, 

17 the term ‘recovery zone economic development bond’ 

18 means any build America bond (as defined in section 

19 54AA(d)) issued before January 1, 2011, as part of 

20 issue if— 

21 ‘‘(A) 100 percent of the available project 

22 proceeds (as defined in section 54A) of such issue 

23 are to be used for one or more qualified economic 

24 development purposes, and 
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1 ‘‘(B) the issuer designates such bond for 

2 purposes of this section. 

3 ‘‘(2) LIMITATION ON AMOUNT OF BONDS DES4 IGNATED.—The maximum aggregate face amount of 

5 bonds which may be designated by any issuer under 

6 paragraph (1) shall not exceed the amount of the re7 covery zone economic development bond limitation al8 located to such issuer under section 1400U–1. 

9 ‘‘(c) QUALIFIED ECONOMIC DEVELOPMENT PUR10 POSE.—For purposes of this section, the term ‘qualified eco11 nomic development purpose’ means expenditures for pur12 poses of promoting development or other economic activity 

13 in a recovery zone, including— 

14 ‘‘(1) capital expenditures paid or incurred with 

15 respect to property located in such zone, 

16 ‘‘(2) expenditures for public infrastructure and 

17 construction of public facilities, and 

18 ‘‘(3) expenditures for job training and edu19 cational programs. 

20 ‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. 

21 ‘‘(a) IN GENERAL.—For purposes of part IV of sub22 chapter B (relating to tax exemption requirements for State 

23 and local bonds), the term ‘exempt facility bond’ includes 

24 any recovery zone facility bond. 

25 ‘‘(b) RECOVERY ZONE FACILITY BOND.— 
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1 ‘‘(1) IN GENERAL.—For purposes of this section, 

2 the term ‘recovery zone facility bond’ means any bond 

3 issued as part of an issue if— 

4 ‘‘(A) 95 percent or more of the net proceeds 

5 (as defined in section 150(a)(3)) of such issue 

6 are to be used for recovery zone property, 

7 ‘‘(B) such bond is issued before January 1, 

8 2011, and 

9 ‘‘(C) the issuer designates such bond for 

10 purposes of this section. 

11 ‘‘(2) LIMITATION ON AMOUNT OF BONDS DES12 IGNATED.—The maximum aggregate face amount of 

13 bonds which may be designated by any issuer under 

14 paragraph (1) shall not exceed the amount of recovery 

15 zone facility bond limitation allocated to such issuer 

16 under section 1400U–1. 

17 ‘‘(c) RECOVERY ZONE PROPERTY.—For purposes of 

18 this section— 

19 ‘‘(1) IN GENERAL.—The term ‘recovery zone 

20 property’ means any property to which section 168 

21 applies (or would apply but for section 179) if— 

22 ‘‘(A) such property was acquired by the tax23 payer by purchase (as defined in section 

24 179(d)(2)) after the date on which the designa25 tion of the recovery zone took effect, 
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1 ‘‘(B) the original use of which in the recov2 ery zone commences with the taxpayer, and 

3 ‘‘(C) substantially all of the use of which is 

4 in the recovery zone and is in the active conduct 

5 of a qualified business by the taxpayer in such 

6 zone. 

7 ‘‘(2) QUALIFIED BUSINESS.—The term ‘qualified 

8 business’ means any trade or business except that— 

9 ‘‘(A) the rental to others of real property lo10 cated in a recovery zone shall be treated as a 

11 qualified business only if the property is not res12 idential rental property (as defined in section 

13 168(e)(2)), and 

14 ‘‘(B) such term shall not include any trade 

15 or business consisting of the operation of any fa16 cility described in section 144(c)(6)(B). 

17 ‘‘(3) SPECIAL RULES FOR SUBSTANTIAL RENOVA18 TIONS AND SALE-LEASEBACK.—Rules similar to the 

19 rules of subsections (a)(2) and (b) of section 1397D 

20 shall apply for purposes of this subsection. 

21 ‘‘(d) NONAPPLICATION OF CERTAIN RULES.—Sections 

22 146 (relating to volume cap) and 147(d) (relating to acqui23 sition of existing property not permitted) shall not apply 

24 to any recovery zone facility bond.’’. 
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1 (b) CLERICAL AMENDMENT.—The table of parts for 

2 subchapter Y of chapter 1 of such Code is amended by add3 ing at the end the following new item: 

‘‘PART III. RECOVERY ZONE BONDS.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by this 

5 section shall apply to obligations issued after the date of 

6 the enactment of this Act. 

7 SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS. 

8 (a) IN GENERAL.—Section 7871 is amended by adding 

9 at the end the following new subsection: 

10 ‘‘(f) TRIBAL ECONOMIC DEVELOPMENT BONDS.— 

11 ‘‘(1) ALLOCATION OF LIMITATION.— 

12 ‘‘(A) IN GENERAL.—The Secretary shall al13 locate the national tribal economic development 

14 bond limitation among the Indian tribal govern15 ments in such manner as the Secretary, in con16 sultation with the Secretary of the Interior, de17 termines appropriate. 

18 ‘‘(B) NATIONAL LIMITATION.—There is a 

19 national tribal economic development bond limi20 tation of $2,000,000,000. 

21 ‘‘(2) BONDS TREATED AS EXEMPT FROM TAX.— 

22 In the case of a tribal economic development bond— 

23 ‘‘(A) notwithstanding subsection (c), such 

24 bond shall be treated for purposes of this title in 
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1 the same manner as if such bond were issued by 

2 a State, 

3 ‘‘(B) the Indian tribal government issuing 

4 such bond and any instrumentality of such In5 dian tribal government shall be treated as a 

6 State for purposes of section 141, and 

7 ‘‘(C) section 146 shall not apply. 

8 ‘‘(3) TRIBAL ECONOMIC DEVELOPMENT BOND.— 

9 ‘‘(A) IN GENERAL.—For purposes of this 

10 section, the term ‘tribal economic development 

11 bond’ means any bond issued by an Indian trib12 al government— 

13 ‘‘(i) the interest on which would be ex14 empt from tax under section 103 if issued 

15 by a State or local government, and 

16 ‘‘(ii) which is designated by the Indian 

17 tribal government as a tribal economic de18 velopment bond for purposes of this sub19 section. 

20 ‘‘(B) EXCEPTIONS.—The term tribal eco21 nomic development bond shall not include any 

22 bond issued as part of an issue if any portion 

23 of the proceeds of such issue are used to fi24 nance— 
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1 ‘‘(i) any portion of a building in 

2 which class II or class III gaming (as de3 fined in section 4 of the Indian Gaming 

4 Regulatory Act) is conducted or housed or 

5 any other property actually used in the con6 duct of such gaming, or 

7 ‘‘(ii) any facility located outside the 

8 Indian reservation (as defined in section 

9 168(j)(6)). 

10 ‘‘(C) LIMITATION ON AMOUNT OF BONDS

11 DESIGNATED.—The maximum aggregate face 

12 amount of bonds which may be designated by 

13 any Indian tribal government under subpara14 graph (A) shall not exceed the amount of na15 tional tribal economic development bond limita16 tion allocated to such government under para17 graph (1).’’. 

18 (b) STUDY.—The Secretary of the Treasury, or the Sec19 retary’s delegate, shall conduct a study of the effects of the 

20 amendment made by subsection (a). Not later than 1 year 

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

22 of the Treasury, or the Secretary’s delegate, shall report to 

23 Congress on the results of the study conducted under this 

24 paragraph, including the Secretary’s recommendations re25 garding such amendment. 
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1 (c) EFFECTIVE DATE.—The amendment made by sub2 section (a) shall apply to obligations issued after the date 

3 of the enactment of this Act. 

4 SEC. 1403. MODIFICATIONS TO NEW MARKETS TAX CREDIT. 

5 (a) INCREASE IN NATIONAL LIMITATION.— 

6 (1) IN GENERAL.—Section 45D(f)(1) is amend7 ed— 

8 (A) by striking ‘‘and’’ at the end of sub9 paragraph (C), 

10 (B) by striking ‘‘, 2007, 2008, and 2009.’’ 

11 in subparagraph (D), and inserting ‘‘and 

12 2007,’’, and 

13 (C) by adding at the end the following new 

14 subparagraphs: 

15 ‘‘(E) $5,000,000,000 for 2008, and 

16 ‘‘(F) $5,000,000,000 for 2009.’’. 

17 (2) SPECIAL RULE FOR ALLOCATION OF IN18 CREASED 2008 LIMITATION.—The amount of the in19 crease in the new markets tax credit limitation for 

20 calendar year 2008 by reason of the amendments 

21 made by subsection (a) shall be allocated in accord22 ance with section 45D(f)(2) of the Internal Revenue 

23 Code of 1986 to qualified community development en24 tities (as defined in section 45D(c) of such Code) 

25 which— 
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1 (A) submitted an allocation application 

2 with respect to calendar year 2008, and 

3 (B)(i) did not receive an allocation for such 

4 calendar year, or 

5 (ii) received an allocation for such calendar 

6 year in an amount less than the amount re7 quested in the allocation application. 

8 (b) ALTERNATIVE MINIMUM TAX RELIEF.— 

9 (1) IN GENERAL.—Section 38(c)(4)(B) is amend10 ed by redesignating clauses (v) through (viii) as 

11 clauses (vi) through (ix), respectively, and by insert12 ing after clause (iv) the following new clause: 

13 ‘‘(v) the credit determined under sec14 tion 45D to the extent that such credit is at15 tributable to a qualified equity investment 

16 which is designated as such under section 

17 45D(b)(1)(C) pursuant to an allocation of 

18 the new markets tax credit limitation for 

19 calendar year 2009,’’. 

20 (2) EFFECTIVE DATE.—The amendments made 

21 by this subsection shall apply to credits determined 

22 under section 45D of the Internal Revenue Code of 

23 1986 in taxable years ending after the date of the en24 actment of this Act, and to carrybacks of such credits. 
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1 Subtitle F—Infrastructure 

2 Financing Tools 

3 PART I—IMPROVED MARKETABILITY FOR TAX4 EXEMPT BONDS 

5 SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX6 EXEMPT INTEREST EXPENSE OF FINANCIAL 

7 INSTITUTIONS. 

8 (a) IN GENERAL.—Subsection (b) of section 265 is 

9 amended by adding at the end the following new paragraph: 

10 ‘‘(7) DE MINIMIS EXCEPTION FOR BONDS ISSUED

11 DURING 2009 OR 2010.— 

12 ‘‘(A) IN GENERAL.—In applying paragraph 

13 (2)(A), there shall not be taken into account tax14 exempt obligations issued during 2009 or 2010. 

15 ‘‘(B) LIMITATION.—The amount of tax-ex16 empt obligations not taken into account by rea17 son of subparagraph (A) shall not exceed 2 per18 cent of the amount determined under paragraph 

19 (2)(B). 

20 ‘‘(C) REFUNDINGS.—For purposes of this 

21 paragraph, a refunding bond (whether a current 

22 or advance refunding) shall be treated as issued 

23 on the date of the issuance of the refunded bond 

24 (or in the case of a series of refundings, the 

25 original bond).’’. 
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1 (b) TREATMENT AS FINANCIAL INSTITUTION PREF2 ERENCE ITEM.—Clause (iv) of section 291(e)(1)(B) is 

3 amended by adding at the end the following: ‘‘That portion 

4 of any obligation not taken into account under paragraph 

5 (2)(A) of section 265(b) by reason of paragraph (7) of such 

6 section shall be treated for purposes of this section as having 

7 been acquired on August 7, 1986.’’. 

8 (c) EFFECTIVE DATE.—The amendments made by this 

9 section shall apply to obligations issued after December 31, 

10 2008. 

11 SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO 

12 TAX-EXEMPT INTEREST EXPENSE ALLOCA13 TION RULES FOR FINANCIAL INSTITUTIONS. 

14 (a) IN GENERAL.—Paragraph (3) of section 265(b) 

15 (relating to exception for certain tax-exempt obligations) is 

16 amended by adding at the end the following new subpara17 graph: 

18 ‘‘(G) SPECIAL RULES FOR OBLIGATIONS

19 ISSUED DURING 2009 AND 2010.— 

20 ‘‘(i) INCREASE IN LIMITATION.—In the 

21 case of obligations issued during 2009 or 

22 2010, subparagraphs (C)(i), (D)(i), and 

23 (D)(iii)(II) shall each be applied by sub24 stituting ‘$30,000,000’ for ‘$10,000,000’. 
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1 ‘‘(ii) QUALIFIED 501(C)(3) BONDS

2 TREATED AS ISSUED BY EXEMPT ORGANIZA3 TION.—In the case of a qualified 501(c)(3) 

4 bond (as defined in section 145) issued dur5 ing 2009 or 2010, this paragraph shall be 

6 applied by treating the 501(c)(3) organiza7 tion for whose benefit such bond was issued 

8 as the issuer. 

9 ‘‘(iii) SPECIAL RULE FOR QUALIFIED

10 FINANCINGS.—In the case of a qualified fi11 nancing issue issued during 2009 or 2010— 

12 ‘‘(I) subparagraph (F) shall not 

13 apply, and 

14 ‘‘(II) any obligation issued as a 

15 part of such issue shall be treated as a 

16 qualified tax-exempt obligation if the 

17 requirements of this paragraph are met 

18 with respect to each qualified portion 

19 of the issue (determined by treating 

20 each qualified portion as a separate 

21 issue which is issued by the qualified 

22 borrower with respect to which such 

23 portion relates). 

24 ‘‘(iv) QUALIFIED FINANCING ISSUE.— 

25 For purposes of this subparagraph, the term 
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1 ‘qualified financing issue’ means any com2 posite, pooled, or other conduit financing 

3 issue the proceeds of which are used directly 

4 or indirectly to make or finance loans to 1 

5 or more ultimate borrowers each of whom is 

6 a qualified borrower. 

7 ‘‘(v) QUALIFIED PORTION.—For pur8 poses of this subparagraph, the term ‘quali9 fied portion’ means that portion of the pro10 ceeds which are used with respect to each 

11 qualified borrower under the issue. 

12 ‘‘(vi) QUALIFIED BORROWER.—For 

13 purposes of this subparagraph, the term 

14 ‘qualified borrower’ means a borrower 

15 which is a State or political subdivision 

16 thereof or an organization described in sec17 tion 501(c)(3) and exempt from taxation 

18 under section 501(a).’’. 

19 (b) EFFECTIVE DATE.—The amendment made by this 

20 section shall apply to obligations issued after December 31, 

21 2008. 
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1 SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE 

2 MINIMUM TAX LIMITATIONS ON TAX-EXEMPT 

3 BONDS. 

4 (a) INTEREST ON PRIVATE ACTIVITY BONDS ISSUED

5 DURING 2009 AND 2010 NOT TREATED AS TAX PREF6 ERENCE ITEM.—Subparagraph (C) of section 57(a)(5) is 

7 amended by adding at the end a new clause: 

8 ‘‘(vi) EXCEPTION FOR BONDS ISSUED

9 IN 2009 AND 2010.—For purposes of clause 

10 (i), the term ‘private activity bond’ shall 

11 not include any bond issued after December 

12 31, 2008, and before January 1, 2011. For 

13 purposes of the preceding sentence, a re14 funding bond (whether a current or advance 

15 refunding) shall be treated as issued on the 

16 date of the issuance of the refunded bond (or 

17 in the case of a series of refundings, the 

18 original bond).’’. 

19 (b) NO ADJUSTMENT TO ADJUSTED CURRENT EARN20 INGS FOR INTEREST ON TAX-EXEMPT BONDS ISSUED DUR21 ING 2009 AND 2010.—Subparagraph (B) of section 56(g)(4) 

22 is amended by adding at the end the following new clause: 

23 ‘‘(iv) TAX EXEMPT INTEREST ON

24 BONDS ISSUED IN 2009 AND 2010.—Clause (i) 

25 shall not apply in the case of any interest 

26 on a bond issued after December 31, 2008, 
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1 and before January 1, 2011. For purposes 

2 of the preceding sentence, a refunding bond 

3 (whether a current or advance refunding) 

4 shall be treated as issued on the date of the 

5 issuance of the refunded bond (or in the case 

6 of a series of refundings, the original 

7 bond).’’. 

8 (c) EFFECTIVE DATE.—The amendments made by this 

9 section shall apply to obligations issued after December 31, 

10 2008. 

11 SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL 

12 FACILITY BONDS. 

13 (a) IN GENERAL.—Paragraph (1) of section 142(i) is 

14 amended by striking ‘‘operate at speeds in excess of’’ and 

15 inserting ‘‘be capable of attaining a maximum speed in ex16 cess of’’. 

17 (b) EFFECTIVE DATE.—The amendment made by this 

18 section shall apply to bonds issued after the date of the en19 actment of this Act. 
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1 PART II—DELAY IN APPLICATION OF WITH2 HOLDING TAX ON GOVERNMENT CONTRAC3 TORS 

4 SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX 

5 ON GOVERNMENT CONTRACTORS. 

6 Subsection (b) of section 511 of the Tax Increase Pre7 vention and Reconciliation Act of 2005 is amended by strik8 ing ‘‘December 31, 2010’’ and inserting ‘‘December 31, 

9 2011’’. 

10 PART III—TAX CREDIT BONDS FOR SCHOOLS 

11 SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

12 (a) IN GENERAL.—Subpart I of part IV of subchapter 

13 A of chapter 1 is amended by adding at the end the fol14 lowing new section: 

15 ‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

16 ‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.—For 

17 purposes of this subchapter, the term ‘qualified school con18 struction bond’ means any bond issued as part of an issue 

19 if— 

20 ‘‘(1) 100 percent of the available project proceeds 

21 of such issue are to be used for the construction, reha22 bilitation, or repair of a public school facility or for 

23 the acquisition of land on which such a facility is to 

24 be constructed with part of the proceeds of such issue, 
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1 ‘‘(2) the bond is issued by a State or local gov2 ernment within the jurisdiction of which such school 

3 is located, and 

4 ‘‘(3) the issuer designates such bond for purposes 

5 of this section. 

6 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES7 IGNATED.—The maximum aggregate face amount of bonds 

8 issued during any calendar year which may be designated 

9 under subsection (a) by any issuer shall not exceed the limi10 tation amount allocated under subsection (d) for such cal11 endar year to such issuer. 

12 ‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS

13 DESIGNATED.—There is a national qualified school con14 struction bond limitation for each calendar year. Such lim15 itation is— 

16 ‘‘(1) $5,000,000,000 for 2009, 

17 ‘‘(2) $5,000,000,000 for 2010, and 

18 ‘‘(3) except as provided in subsection (e), zero 

19 after 2010. 

20 ‘‘(d) LIMITATION ALLOCATED AMONG STATES.— 

21 ‘‘(1) IN GENERAL.—The limitation applicable 

22 under subsection (c) for any calendar year shall be al23 located by the Secretary among the States in propor24 tion to the respective numbers of children in each 

25 State who have attained age 5 but not age 18 for the 
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1 most recent fiscal year ending before such calendar 

2 year. The limitation amount allocated to a State 

3 under the preceding sentence shall be allocated by the 

4 State to issuers within such State. 

5 ‘‘(2) MINIMUM ALLOCATIONS TO STATES.— 

6 ‘‘(A) IN GENERAL.—The Secretary shall ad7 just the allocations under this subsection for any 

8 calendar year for each State to the extent nec9 essary to ensure that the amount allocated to 

10 such State under this subsection for such year is 

11 not less than an amount equal to such State’s 

12 adjusted minimum percentage of the amount to 

13 be allocated under paragraph (1) for the cal14 endar year. 

15 ‘‘(B) MINIMUM PERCENTAGE.—A State’s 

16 minimum percentage for any calendar year is 

17 equal to the product of— 

18 ‘‘(i) the quotient of— 

19 ‘‘(I) the amount the State is eligi20 ble to receive under section 1124(d) of 

21 the Elementary and Secondary Edu22 cation Act of 1965 (20 U.S.C. 6333(d)) 

23 for the most recent fiscal year ending 

24 before such calendar year, divided by 
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1 ‘‘(II) the amount all States are el2 igible to receive under section 1124 of 

3 such Act (20 U.S.C. 6333) for such fis4 cal year, multiplied by 

5 ‘‘(ii) 100. 

6 ‘‘(3) ALLOCATIONS TO CERTAIN POSSESSIONS.— 

7 The amount to be allocated under paragraph (1) to 

8 any possession of the United States other than Puerto 

9 Rico shall be the amount which would have been allo10 cated if all allocations under paragraph (1) were 

11 made on the basis of respective populations of indi12 viduals below the poverty line (as defined by the Of13 fice of Management and Budget). In making other al14 locations, the amount to be allocated under paragraph 

15 (1) shall be reduced by the aggregate amount allocated 

16 under this paragraph to possessions of the United 

17 States. 

18 ‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In 

19 addition to the amounts otherwise allocated under 

20 this subsection, $200,000,000 for calendar year 2009, 

21 and $200,000,000 for calendar year 2010, shall be al22 located by the Secretary of the Interior for purposes 

23 of the construction, rehabilitation, and repair of 

24 schools funded by the Bureau of Indian Affairs. In the 

25 case of amounts allocated under the preceding sen-
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1 tence, Indian tribal governments (as defined in sec2 tion 7701(a)(40)) shall be treated as qualified issuers 

3 for purposes of this subchapter. 

4 ‘‘(e) CARRYOVER OF UNUSED LIMITATION.—If for any 

5 calendar year— 

6 ‘‘(1) the amount allocated under subsection (d) to 

7 any State, exceeds 

8 ‘‘(2) the amount of bonds issued during such 

9 year which are designated under subsection (a) pur10 suant to such allocation, 

11 the limitation amount under such subsection for such State 

12 for the following calendar year shall be increased by the 

13 amount of such excess. A similar rule shall apply to the 

14 amounts allocated under subsection (d)(4).’’. 

15 (b) CONFORMING AMENDMENTS.— 

16 (1) Paragraph (1) of section 54A(d) is amended 

17 by striking ‘‘or’’ at the end of subparagraph (C), by 

18 inserting ‘‘or’’ at the end of subparagraph (D), and 

19 by inserting after subparagraph (D) the following 

20 new subparagraph: 

21 ‘‘(E) a qualified school construction bond,’’. 

22 (2) Subparagraph (C) of section 54A(d)(2) is 

23 amended by striking ‘‘and’’ at the end of clause (iii), 

24 by striking the period at the end of clause (iv) and 
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1 inserting ‘‘, and’’, and by adding at the end the fol2 lowing new clause: 

3 ‘‘(v) in the case of a qualified school 

4 construction bond, a purpose specified in 

5 section 54F(a)(1).’’. 

6 (3) The table of sections for subpart I of part IV 

7 of subchapter A of chapter 1 is amended by adding 

8 at the end the following new item: 

‘‘Sec. 54F. Qualified school construction bonds.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by this 

10 section shall apply to obligations issued after the date of 

11 the enactment of this Act. 

12 SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED 

13 ZONE ACADEMY BONDS. 

14 (a) IN GENERAL.—Section 54E(c)(1) is amended by 

15 striking ‘‘and 2009’’ and inserting ‘‘and $1,400,000,000 for 

16 2009 and 2010’’. 

17 (b) EFFECTIVE DATE.—The amendment made by this 

18 section shall apply to obligations issued after December 31, 

19 2008. 

20 PART IV—BUILD AMERICA BONDS 

21 SEC. 1531. BUILD AMERICA BONDS. 

22 (a) IN GENERAL.—Part IV of subchapter A of chapter 

23 1 is amended by adding at the end the following new sub24 part: 
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1 ‘‘Subpart J—Build America Bonds 

‘‘Sec. 54AA. Build America bonds. 

2 ‘‘SEC. 54AA. BUILD AMERICA BONDS. 

3 ‘‘(a) IN GENERAL.—If a taxpayer holds a build Amer4 ica bond on one or more interest payment dates of the bond 

5 during any taxable year, there shall be allowed as a credit 

6 against the tax imposed by this chapter for the taxable year 

7 an amount equal to the sum of the credits determined under 

8 subsection (b) with respect to such dates. 

9 ‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 

10 determined under this subsection with respect to any inter11 est payment date for a build America bond is 35 percent 

12 of the amount of interest payable by the issuer with respect 

13 to such date (40 percent in the case of an issuer described 

14 in section 148(f)(4)(D) (determined without regard to 

15 clauses (v), (vi), and (vii) thereof and by substituting 

16 ‘$30,000,000’ for ‘$5,000,000’ each place it appears there17 in). 

18 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 

19 ‘‘(1) IN GENERAL.—The credit allowed under 

20 subsection (a) for any taxable year shall not exceed 

21 the excess of— 

22 ‘‘(A) the sum of the regular tax liability (as 

23 defined in section 26(b)) plus the tax imposed by 

24 section 55, over 
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1 ‘‘(B) the sum of the credits allowable under 

2 this part (other than subpart C and this sub3 part). 

4 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

5 credit allowable under subsection (a) exceeds the limi6 tation imposed by paragraph (1) for such taxable 

7 year, such excess shall be carried to the succeeding 

8 taxable year and added to the credit allowable under 

9 subsection (a) for such taxable year (determined be10 fore the application of paragraph (1) for such suc11 ceeding taxable year). 

12 ‘‘(d) BUILD AMERICA BOND.— 

13 ‘‘(1) IN GENERAL.—For purposes of this section, 

14 the term ‘build America bond’ means any obligation 

15 (other than a private activity bond) if— 

16 ‘‘(A) the interest on such obligation would 

17 (but for this section) be excludable from gross in18 come under section 103, 

19 ‘‘(B) such obligation is issued before Janu20 ary 1, 2011, and 

21 ‘‘(C) the issuer makes an irrevocable elec22 tion to have this section apply. 

23 ‘‘(2) APPLICABLE RULES.—For purposes of ap24 plying paragraph (1)— 
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1 ‘‘(A) for purposes of section 149(b), a build 

2 America bond shall not be treated as federally 

3 guaranteed by reason of the credit allowed under 

4 subsection (a) or section 6431, 

5 ‘‘(B) for purposes of section 148, the yield 

6 on a build America bond shall be determined 

7 without regard to the credit allowed under sub8 section (a), and 

9 ‘‘(C) a bond shall not be treated as a build 

10 America bond if the issue price has more than 

11 a de minimis amount (determined under rules 

12 similar to the rules of section 1273(a)(3)) of pre13 mium over the stated principal amount of the 

14 bond. 

15 ‘‘(e) INTEREST PAYMENT DATE.—For purposes of this 

16 section, the term ‘interest payment date’ means any date 

17 on which the holder of record of the build America bond 

18 is entitled to a payment of interest under such bond. 

19 ‘‘(f) SPECIAL RULES.— 

20 ‘‘(1) INTEREST ON BUILD AMERICA BONDS IN21 CLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME

22 TAX PURPOSES.—For purposes of this title, interest 

23 on any build America bond shall be includible in 

24 gross income. 
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1 ‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 

2 similar to the rules of subsections (f), (g), (h), and (i) 

3 of section 54A shall apply for purposes of the credit 

4 allowed under subsection (a). 

5 ‘‘(g) SPECIAL RULE FOR QUALIFIED BONDS ISSUED

6 BEFORE 2011.—In the case of a qualified bond issued before 

7 January 1, 2011— 

8 ‘‘(1) ISSUER ALLOWED REFUNDABLE CREDIT.— 

9 In lieu of any credit allowed under this section with 

10 respect to such bond, the issuer of such bond shall be 

11 allowed a credit as provided in section 6431. 

12 ‘‘(2) QUALIFIED BOND.—For purposes of this 

13 subsection, the term ‘qualified bond’ means any build 

14 America bond issued as part of an issue if— 

15 ‘‘(A) 100 percent of the available project 

16 proceeds (as defined in section 54A) of such issue 

17 are to be used for capital expenditures, and 

18 ‘‘(B) the issuer makes an irrevocable elec19 tion to have this subsection apply. 

20 ‘‘(h) REGULATIONS.—The Secretary may prescribe 

21 such regulations and other guidance as may be necessary 

22 or appropriate to carry out this section and section 6431.’’. 

23 (b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE

24 2011.—Subchapter B of chapter 65 is amended by adding 

25 at the end the following new section: 
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1 ‘‘SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO 

2 ISSUER. 

3 ‘‘(a) IN GENERAL.—In the case of a qualified bond 

4 issued before January 1, 2011, the issuer of such bond shall 

5 be allowed a credit with respect to each interest payment 

6 under such bond which shall be payable by the Secretary 

7 as provided in subsection (b). 

8 ‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay 

9 (contemporaneously with each interest payment date under 

10 such bond) to the issuer of such bond (or to any person 

11 who makes such interest payments on behalf of the issuer) 

12 35 percent of the interest payable under such bond on such 

13 date (40 percent in the case of an issuer described in section 

14 148(f)(4)(D) (determined without regard to clauses (v), (vi), 

15 and (vii) thereof and by substituting ‘$30,000,000’ for 

16 ‘$5,000,000’ each place it appears therein). 

17 ‘‘(c) APPLICATION OF ARBITRAGE RULES.—For pur18 poses of section 148, the yield on a qualified bond shall be 

19 reduced by the credit allowed under this section. 

20 ‘‘(d) INTEREST PAYMENT DATE.—For purposes of this 

21 subsection, the term ‘interest payment date’ means each 

22 date on which interest is payable by the issuer under the 

23 terms of the bond. 

24 ‘‘(e) QUALIFIED BOND.—For purposes of this sub25 section, the term ‘qualified bond’ has the meaning given 

26 such term in section 54AA(g).’’. 
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1 (c) CONFORMING AMENDMENTS.— 

2 (1) Section 1324(b)(2) of title 31, United States 

3 Code, is amended by striking ‘‘or 6428’’ and inserting 

4 ‘‘6428, or 6431,’’. 

5 (2) Section 54A(c)(1)(B) is amended by striking 

6 ‘‘subpart C’’ and inserting ‘‘subparts C and J’’. 

7 (3) Sections 54(c)(2), 1397E(c)(2), and 

8 1400N(l)(3)(B) are each amended by striking ‘‘and I’’ 

9 and inserting ‘‘, I, and J’’. 

10 (4) Section 6401(b)(1) is amended by striking 

11 ‘‘and I’’ and inserting ‘‘I, and J’’. 

12 (5) The table of subparts for part IV of sub13 chapter A of chapter 1 is amended by adding at the 

14 end the following new item: 

‘‘Subpart J. Build America bonds.’’. 

15 (6) The table of section for subchapter B of chap16 ter 65 is amended by adding at the end the following 

17 new item: 

‘‘Sec. 6431. Credit for qualified bonds allowed to issuer.’’. 

18 (d) TRANSITIONAL COORDINATION WITH STATE

19 LAW.—Except as otherwise provided by a State after the 

20 date of the enactment of this Act, the interest on any build 

21 America bond (as defined in section 54AA of the Internal 

22 Revenue Code of 1986, as added by this section) and the 

23 amount of any credit determined under such section with 

24 respect to such bond shall be treated for purposes of the in-
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1 come tax laws of such State as being exempt from Federal 

2 income tax. 

3 (e) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply to obligations issued after the date of 

5 the enactment of this Act. 

6 Subtitle G—Economic Recovery 

7 Payments to Certain Individuals 

8 SEC. 1601. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS 

9 OF SOCIAL SECURITY, SUPPLEMENTAL SECU10 RITY INCOME, RAILROAD RETIREMENT BENE11 FITS, AND VETERANS DISABILITY COMPENSA12 TION OR PENSION BENEFITS. 

13 (a) AUTHORITY TO MAKE PAYMENTS.— 

14 (1) ELIGIBILITY.— 

15 (A) IN GENERAL.—Subject to paragraph 

16 (5)(B), the Secretary of the Treasury shall make 

17 a $300 payment to each individual who, for any 

18 month during the 3-month period ending with 

19 the month which ends prior to the month that 

20 includes the date of the enactment of this Act, is 

21 entitled to a benefit payment described in clause 

22 (i), (ii), or (iii) of subparagraph (B) or is eligi23 ble for a SSI cash benefit described in subpara24 graph (C). 
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1 (B) BENEFIT PAYMENT DESCRIBED.—For 

2 purposes of subparagraph (A): 

3 (i) TITLE II BENEFIT.—A benefit pay4 ment described in this clause is a monthly 

5 insurance benefit payable (without regard 

6 to sections 202(j)(1) and 223(b) of the So7 cial Security Act (42 U.S.C. 402(j)(1), 

8 423(b)) under— 

9 (I) section 202(a) of such Act (42 

10 U.S.C. 402(a)); 

11 (II) section 202(b) of such Act (42 

12 U.S.C. 402(b)); 

13 (III) section 202(c) of such Act 

14 (42 U.S.C. 402(c)); 

15 (IV) section 202(d)(1)(B)(ii) of 

16 such Act (42 U.S.C. 402(d)(1)(B)(ii)); 

17 (V) section 202(e) of such Act (42 

18 U.S.C. 402(e)); 

19 (VI) section 202(f) of such Act (42 

20 U.S.C. 402(f)); 

21 (VII) section 202(g) of such Act 

22 (42 U.S.C. 402(g)); 

23 (VIII) section 202(h) of such Act 

24 (42 U.S.C. 402(h)); 
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1 (IX) section 223(a) of such Act 

2 (42 U.S.C. 423(a)); 

3 (X) section 227 of such Act (42 

4 U.S.C. 427); or 

5 (XI) section 228 of such Act (42 

6 U.S.C. 428). 

7 (ii) RAILROAD RETIREMENT BEN8 EFIT.—A benefit payment described in this 

9 clause is a monthly annuity or pension 

10 payment payable (without regard to section 

11 5(a)(ii) of the Railroad Retirement Act of 

12 1974 (45 U.S.C. 231d(a)(ii)) under— 

13 (I) section 2(a)(1) of such Act (45 

14 U.S.C. 231a(a)(1)); 

15 (II) section 2(c) of such Act (45 

16 U.S.C. 231a(c)); 

17 (III) section 2(d)(1)(i) of such Act 

18 (45 U.S.C. 231a(d)(1)(i)); 

19 (IV) section 2(d)(1)(ii) of such Act 

20 (45 U.S.C. 231a(d)(1)(ii)); 

21 (V) section 2(d)(1)(iii)(C) of such 

22 Act to an adult disabled child (45 

23 U.S.C. 231a(d)(1)(iii)(C)); 

24 (VI) section 2(d)(1)(iv) of such 

25 Act (45 U.S.C. 231a(d)(1)(iv)); 
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1 (VII) section 2(d)(1)(v) of such 

2 Act (45 U.S.C. 231a(d)(1)(v)); or 

3 (VIII) section 7(b)(2) of such Act 

4 (45 U.S.C. 231f(b)(2)) with respect to 

5 any of the benefit payments described 

6 in clause (i) of this subparagraph. 

7 (iii) VETERANS BENEFIT.—A benefit 

8 payment described in this clause is a com9 pensation or pension payment payable 

10 under— 

11 (I) section 1110, 1117, 1121, 

12 1131, 1141, or 1151 of title 38, United 

13 States Code; 

14 (II) section 1310, 1312, 1313, 

15 1315, 1316, or 1318 of title 38, United 

16 States Code; 

17 (III) section 1513, 1521, 1533, 

18 1536, 1537, 1541, 1542, or 1562 of 

19 title 38, United States Code; or 

20 (IV) section 1805, 1815, or 1821 

21 of title 38, United States Code, 

22 to a veteran, surviving spouse, child, or 

23 parent as described in paragraph (2), (3), 

24 (4)(A)(ii), or (5) of section 101, title 38, 

25 United States Code, who received that ben-
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1 efit during any month within the 3 month 

2 period ending with the month which ends 

3 prior to the month that includes the date of 

4 the enactment of this Act. 

5 (C) SSI CASH BENEFIT DESCRIBED.—A 

6 SSI cash benefit described in this subparagraph 

7 is a cash benefit payable under section 1611 

8 (other than under subsection (e)(1)(B) of such 

9 section) or 1619(a) of the Social Security Act 

10 (42 U.S.C. 1382, 1382h). 

11 (2) REQUIREMENT.—A payment shall be made 

12 under paragraph (1) only to individuals who reside 

13 in 1 of the 50 States, the District of Columbia, Puerto 

14 Rico, Guam, the United States Virgin Islands, Amer15 ican Samoa, or the Northern Mariana Islands. For 

16 purposes of the preceding sentence, the determination 

17 of the individual’s residence shall be based on the cur18 rent address of record under a program specified in 

19 paragraph (1). 

20 (3) NO DOUBLE PAYMENTS.—An individual shall 

21 be paid only 1 payment under this section, regardless 

22 of whether the individual is entitled to, or eligible for, 

23 more than 1 benefit or cash payment described in 

24 paragraph (1). 
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1 (4) LIMITATION.—A payment under this section 

2 shall not be made— 

3 (A) in the case of an individual entitled to 

4 a benefit specified in paragraph (1)(B)(i) or 

5 paragraph (1)(B)(ii)(VIII) if, for the most recent 

6 month of such individual’s entitlement in the 3- 

7 month period described in paragraph (1), such 

8 individual’s benefit under such paragraph was 

9 not payable by reason of subsection (x) or (y) of 

10 section 202 the Social Security Act (42 U.S.C. 

11 402) or section 1129A of such Act (42 U.S.C. 

12 1320a-8a); 

13 (B) in the case of an individual entitled to 

14 a benefit specified in paragraph (1)(B)(iii) if, 

15 for the most recent month of such individual’s 

16 entitlement in the 3 month period described in 

17 paragraph (1), such individual’s benefit under 

18 such paragraph was not payable, or was re19 duced, by reason of section 1505, 5313, or 5313B 

20 of title 38, United States Code; 

21 (C) in the case of an individual entitled to 

22 a benefit specified in paragraph (1)(C) if, for 

23 such most recent month, such individual’s benefit 

24 under such paragraph was not payable by rea25 son of subsection (e)(1)(A) or (e)(4) of section 
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1 1611 (42 U.S.C. 1382) or section 1129A of such 

2 Act (42 U.S.C. 1320a-8a); or 

3 (D) in the case of any individual whose 

4 date of death occurs before the date on which the 

5 individual is certified under subsection (b) to re6 ceive a payment under this section. 

7 (5) TIMING AND MANNER OF PAYMENTS.— 

8 (A) IN GENERAL.—The Secretary of the 

9 Treasury shall commence making payments 

10 under this section at the earliest practicable date 

11 but in no event later than 120 days after the 

12 date of enactment of this Act. The Secretary of 

13 the Treasury may make any payment electroni14 cally to an individual in such manner as if such 

15 payment was a benefit payment or cash benefit 

16 to such individual under the applicable program 

17 described in subparagraph (B) or (C) of para18 graph (1). 

19 (B) DEADLINE.—No payments shall be 

20 made under this section after December 31, 2010, 

21 regardless of any determinations of entitlement 

22 to, or eligibility for, such payments made after 

23 such date. 

24 (b) IDENTIFICATION OF RECIPIENTS.—The Commis25 sioner of Social Security, the Railroad Retirement Board, 
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1 and the Secretary of Veterans Affairs shall certify the indi2 viduals entitled to receive payments under this section and 

3 provide the Secretary of the Treasury with the information 

4 needed to disburse such payments. A certification of an in5 dividual shall be unaffected by any subsequent determina6 tion or redetermination of the individual’s entitlement to, 

7 or eligibility for, a benefit specified in subparagraph (B) 

8 or (C) of subsection (a)(1). 

9 (c) TREATMENT OF PAYMENTS.— 

10 (1) PAYMENT TO BE DISREGARDED FOR PUR11 POSES OF ALL FEDERAL AND FEDERALLY ASSISTED

12 PROGRAMS.—A payment under subsection (a) shall 

13 not be regarded as income and shall not be regarded 

14 as a resource for the month of receipt and the fol15 lowing 9 months, for purposes of determining the eli16 gibility of the recipient (or the recipient’s spouse or 

17 family) for benefits or assistance, or the amount or 

18 extent of benefits or assistance, under any Federal 

19 program or under any State or local program fi20 nanced in whole or in part with Federal funds. 

21 (2) PAYMENT NOT CONSIDERED INCOME FOR

22 PURPOSES OF TAXATION.—A payment under sub23 section (a) shall not be considered as gross income for 

24 purposes of the Internal Revenue Code of 1986. 
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1 (3) PAYMENTS PROTECTED FROM ASSIGNMENT.— 

2 The provisions of sections 207 and 1631(d)(1) of the 

3 Social Security Act (42 U.S.C. 407, 1383(d)(1)), sec4 tion 14(a) of the Railroad Retirement Act of 1974 (45 

5 U.S.C. 231m(a)), and section 5301 of title 38, United 

6 States Code, shall apply to any payment made under 

7 subsection (a) as if such payment was a benefit pay8 ment or cash benefit to such individual under the ap9 plicable program described in subparagraph (B) or 

10 (C) of subsection (a)(1). 

11 (4) PAYMENTS SUBJECT TO OFFSET.—Notwith12 standing paragraph (3), for purposes of section 3716 

13 of title 31, United States Code, any payment made 

14 under this section shall not be considered a benefit 

15 payment or cash benefit made under the applicable 

16 program described in subparagraph (B) or (C) of sub17 section (a)(1) and all amounts paid shall be subject 

18 to offset to collect delinquent debts. 

19 (d) PAYMENT TO REPRESENTATIVE PAYEES AND FI20 DUCIARIES.— 

21 (1) IN GENERAL.—In any case in which an indi22 vidual who is entitled to a payment under subsection 

23 (a) and whose benefit payment or cash benefit de24 scribed in paragraph (1) of that subsection is paid to 

25 a representative payee or fiduciary, the payment 
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1 under subsection (a) shall be made to the individual’s 

2 representative payee or fiduciary and the entire pay3 ment shall be used only for the benefit of the indi4 vidual who is entitled to the payment. 

5 (2) APPLICABILITY.— 

6 (A) PAYMENT ON THE BASIS OF A TITLE II

7 OR SSI BENEFIT.—Section 1129(a)(3) of the So8 cial Security Act (42 U.S.C. 1320a–8(a)(3)) 

9 shall apply to any payment made on the basis 

10 of an entitlement to a benefit specified in para11 graph (1)(B)(i) or (1)(C) of subsection (a) in the 

12 same manner as such section applies to a pay13 ment under title II or XVI of such Act. 

14 (B) PAYMENT ON THE BASIS OF A RAIL15 ROAD RETIREMENT BENEFIT.—Section 13 of the 

16 Railroad Retirement Act (45 U.S.C. 231l) shall 

17 apply to any payment made on the basis of an 

18 entitlement to a benefit specified in paragraph 

19 (1)(B)(ii) of subsection (a) in the same manner 

20 as such section applies to a payment under such 

21 Act. 

22 (C) PAYMENT ON THE BASIS OF A VET23 ERANS BENEFIT.—Sections 5502, 6106, and 

24 6108 of title 38, United States Code, shall apply 

25 to any payment made on the basis of an entitle-
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1 ment to a benefit specified in paragraph 

2 (1)(B)(iii) of subsection (a) in the same manner 

3 as those sections apply to a payment under that 

4 title. 

5 (e) APPROPRIATION.—Out of any sums in the Treas6 ury of the United States not otherwise appropriated, the 

7 following sums are appropriated for the period of fiscal 

8 years 2009 and 2010 to carry out this section: 

9 (1) For the Secretary of the Treasury— 

10 (A) such sums as may be necessary to make 

11 payments under this section; and 

12 (B) $57,000,000 for administrative costs in13 curred in carrying out this section and section 

14 36A of the Internal Revenue Code of 1986 (as 

15 added by this Act). 

16 (2) For the Commissioner of Social Security, 

17 $90,000,000 for the Social Security Administration’s 

18 Limitation on Administrative Expenses for costs in19 curred in carrying out this section. 

20 (3) For the Railroad Retirement Board, 

21 $1,000,000 for administrative costs incurred in car22 rying out this section. 

23 (4) For the Secretary of Veterans Affairs, 

24 $100,000 for the Information Systems Technology ac25 count and $7,100,000 for the General Operating Ex-
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1 penses account for administrative costs incurred in 

2 carrying out this section. 

3 Subtitle H—Trade Adjustment 

4 Assistance 

5 SEC. 1701. TEMPORARY EXTENSION OF TRADE ADJUST6 MENT ASSISTANCE PROGRAM. 

7 (a) ASSISTANCE FOR WORKERS.— 

8 (1) IN GENERAL.—Section 245(a) of the Trade 

9 Act of 1974 (19 U.S.C. 2317(a)) is amended by strik10 ing ‘‘December 31, 2007’’ and inserting ‘‘December 

11 31, 2010’’. 

12 (2) ALTERNATIVE TRADE ADJUSTMENT ASSIST13 ANCE.—Section 246(b)(1) of the Trade Act of 1974 

14 (19 U.S.C. 2318(b)(1)) is amended by striking ‘‘5 

15 years’’ and inserting ‘‘7 years’’. 

16 (b) ASSISTANCE FOR FIRMS.—Section 256(b) of the 

17 Trade Act of 1974 (19 U.S.C. 2346(b)) is amended by strik18 ing ‘‘2007, and $4,000,000 for the 3-month period begin19 ning on October 1, 2007,’’ and inserting ‘‘December 31, 

20 2010’’. 

21 (c) ASSISTANCE FOR FARMERS.—Section 298(a) of the 

22 Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended by 

23 striking ‘‘through 2007’’ and all that follows through the 

24 end period and inserting ‘‘through December 31, 2010 to 

25 carry out the purposes of this chapter.’’. 
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1 (d) EXTENSION OF TERMINATION DATES.—Section 

2 285 of the Trade Act of 1974 (19 U.S.C. 2271 note) is 

3 amended by striking ‘‘December 31, 2007’’ each place it ap4 pears and inserting ‘‘December 31, 2010’’. 

5 (e) SENSE OF THE SENATE REGARDING ADJUSTMENT

6 ASSISTANCE FOR COMMUNITIES.—It is the sense of the Sen7 ate that title II of the Trade Act of 1974 (19 U.S.C. 2271 

8 et seq.) should be amended to assist any community im9 pacted by trade with economic adjustment through— 

10 (1) the coordination of efforts by State and local 

11 governments and economic organizations; 

12 (2) the coordination of Federal, State, and local 

13 resources; 

14 (3) the creation of community-based development 

15 strategies; and 

16 (4) the development and provision of training 

17 programs. 

18 (f) EFFECTIVE DATE.—The amendments made by this 

19 section shall be effective as of January 1, 2008. 
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1 Subtitle I—Prohibition on Collec2 tion of Certain Payments Made 

3 Under the Continued Dumping 

4 and Subsidy Offset Act of 2000 

5 SEC. 1801. PROHIBITION ON COLLECTION OF CERTAIN PAY6 MENTS MADE UNDER THE CONTINUED DUMP7 ING AND SUBSIDY OFFSET ACT OF 2000. 

8 (a) IN GENERAL.—Notwithstanding any other provi9 sion of law, neither the Secretary of Homeland Security nor 

10 any other person may— 

11 (1) require repayment of, or attempt in any 

12 other way to recoup, any payments described in sub13 section (b); or 

14 (2) offset any past, current, or future distribu15 tions of antidumping or countervailing duties as16 sessed with respect to imports from countries that are 

17 not parties to the North American Free Trade Agree18 ment in an attempt to recoup any payments de19 scribed in subsection (b). 

20 (b) PAYMENTS DESCRIBED.—Payments described in 

21 this subsection are payments of antidumping or counter22 vailing duties made pursuant to the Continued Dumping 

23 and Subsidy Offset Act of 2000 (section 754 of the Tariff 

24 Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title 
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1 VII of the Deficit Reduction Act of 2005 (Public Law 109– 

2 171; 120 Stat. 154))) that were— 

3 (1) assessed and paid on imports of goods from 

4 countries that are parties to the North American Free 

5 Trade Agreement; and 

6 (2) distributed on or after January 1, 2001, and 

7 before January 1, 2006. 

8 (c) PAYMENT OF FUNDS COLLECTED OR WITHHELD.— 

9 Not later than the date that is 60 days after the date of 

10 the enactment of this Act, the Secretary of Homeland Secu11 rity shall— 

12 (1) refund any repayments, or any other 

13 recoupment, of payments described in subsection (b); 

14 and 

15 (2) fully distribute any antidumping or counter16 vailing duties that the U.S. Customs and Border Pro17 tection is withholding as an offset as described in sub18 section (a)(2). 

19 (d) LIMITATION.—Nothing in this section shall be con20 strued to prevent the Secretary of Homeland Security, or 

21 any other person, from requiring repayment of, or attempt22 ing to otherwise recoup, any payments described in sub23 section (b) as a result of— 

24 (1) a finding of false statements or other mis25 conduct by a recipient of such a payment; or 
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1 (2) the reliquidation of an entry with respect to 

2 which such a payment was made. 

3 Subtitle J—Other Provisions 

4 SEC. 1901. APPLICATION OF CERTAIN LABOR STANDARDS 

5 TO PROJECTS FINANCED WITH CERTAIN TAX6 FAVORED BONDS. 

7 Subchapter IV of chapter 31 of the title 40, United 

8 States Code, shall apply to projects financed with the pro9 ceeds of— 

10 (1) any new clean renewable energy bond (as de11 fined in section 54C of the Internal Revenue Code of 

12 1986) issued after the date of the enactment of this 

13 Act, 

14 (2) any qualified energy conservation bond (as 

15 defined in section 54D of the Internal Revenue Code 

16 of 1986) issued after the date of the enactment of this 

17 Act, 

18 (3) any qualified zone academy bond (as defined 

19 in section 54E of the Internal Revenue Code of 1986) 

20 issued after the date of the enactment of this Act, 

21 (4) any qualified school construction bond (as 

22 defined in section 54F of the Internal Revenue Code 

23 of 1986), and 
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1 (5) any recovery zone economic development 

2 bond (as defined in section 1400U–2 of the Internal 

3 Revenue Code of 1986). 

4 SEC. 1902. INCREASE IN PUBLIC DEBT LIMIT. 

5 Subsection (b) of section 3101 of title 31, United States 

6 Code, is amended by striking out the dollar limitation con7 tained in such subsection and inserting 

8 ‘‘$12,140,000,000,000’’. 

9 SEC. 1903. ELECTION TO ACCELERATE THE LOW-INCOME 

10 HOUSING TAX CREDIT. 

11 (a) IN GENERAL.—At the election of the taxpayer, the 

12 credit determined under section 42 of the Internal Revenue 

13 Code of 1986 for the taxpayer’s first three taxable years be14 ginning after December 31, 2008, in which credits are al15 lowable for any non-federally subsidized low-income hous16 ing project initially placed in service after such date— 

17 (1) with respect to initial investments made pur18 suant to a binding agreement by such taxpayer after 

19 December 31, 2008, and before January 1, 2011, and 

20 (2) only from allocations of a State housing 

21 credit ceiling before 2011, 

22 shall be 200 percent of the amount which would (but for 

23 this subsection) be so allowable. 

24 (b) ELIGIBILITY FOR ELECTION.—The election under 

25 subsection (a) shall take effect with respect to the first tax-
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1 able year referred to in such subsection only when all rental 

2 requirements pursuant to section 42(g)(1) of the Internal 

3 Revenue Code of 1986 have been met with respect to such 

4 low-income housing project. 

5 (c) REDUCTION IN AGGREGATE CREDIT TO REFLECT

6 ACCELERATED CREDIT.—The aggregate credit allowable to 

7 any taxpayer under section 42 of the Internal Revenue Code 

8 of 1986 with respect to any investment for taxable years 

9 after the first three taxable years referred to in subsection 

10 (a) shall be reduced on a pro rata basis by the amount of 

11 the increased credit allowable by reason of subsection (a) 

12 with respect to such first three taxable years. The preceding 

13 sentence shall not be construed to affect whether any taxable 

14 year is part of the credit, compliance, or extended use peri15 ods under such section 42. 

16 (d) ELECTION.—The election under subsection (a) 

17 shall be made at the time and in the manner prescribed 

18 by the Secretary of the Treasury or the Secretary’s delegate, 

19 and, once made, shall be irrevocable. In the case of a part20 nership, such election shall be made by the partnership. 
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1 TITLE II—ASSISTANCE FOR UN2 EMPLOYED WORKERS AND 

3 STRUGGLING FAMILIES 

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

5 (a) SHORT TITLE.—This title may be cited as the ‘‘As6 sistance for Unemployed Workers and Struggling Families 

7 Act’’. 

8 (b) TABLE OF CONTENTS.—The table of contents for 

9 this title is as follows: 

TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND 

STRUGGLING FAMILIES 

Sec. 2000. Short title; table of contents. 

Subtitle A—Unemployment Insurance 

Sec. 2001. Extension of emergency unemployment compensation program. 

Sec. 2002. Increase in unemployment compensation benefits. 

Sec. 2003. Unemployment compensation modernization. 

Sec. 2004. Temporary assistance for States with advances. 

Subtitle B—Assistance for Vulnerable Individuals 

Sec. 2101. Emergency fund for TANF program. 

Sec. 2102. Extension of TANF supplemental grants. 

Sec. 2103. Clarification of authority of states to use tanf funds carried over from 

prior years to provide tanf benefits and services. 

Sec. 2104. Temporary reinstatement of authority to provide Federal matching 

payments for State spending of child support incentive payments. 

10 Subtitle A—Unemployment 

11 Insurance 

12 SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT 

13 COMPENSATION PROGRAM. 

14 (a) IN GENERAL.—Section 4007 of the Supplemental 

15 Appropriations Act, 2008 (Public Law 110–252; 26 U.S.C. 

16 3304 note), as amended by section 4 of the Unemployment 
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1 Compensation Extension Act of 2008 (Public Law 110–449; 

2 122 Stat. 5015), is amended— 

3 (1) by striking ‘‘March 31, 2009’’ each place it 

4 appears and inserting ‘‘December 31, 2009’’; 

5 (2) in the heading for subsection (b)(2), by strik6 ing ‘‘MARCH 31, 2009’’ and inserting ‘‘DECEMBER 31, 

7 2009’’; and 

8 (3) in subsection (b)(3), by striking ‘‘August 27, 

9 2009’’ and inserting ‘‘May 31, 2010’’. 

10 (b) FINANCING PROVISIONS.—Section 4004 of such Act 

11 is amended by adding at the end the following: 

12 ‘‘(e) TRANSFER OF FUNDS.—Notwithstanding any 

13 other provision of law, the Secretary of the Treasury shall 

14 transfer from the general fund of the Treasury (from funds 

15 not otherwise appropriated)— 

16 ‘‘(1) to the extended unemployment compensation 

17 account (as established by section 905 of the Social 

18 Security Act) such sums as the Secretary of Labor es19 timates to be necessary to make payments to States 

20 under this title by reason of the amendments made by 

21 section 2001(a) of the Assistance for Unemployed 

22 Workers and Struggling Families Act; and 

23 ‘‘(2) to the employment security administration 

24 account (as established by section 901 of the Social 

25 Security Act) such sums as the Secretary of Labor es-
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1 timates to be necessary for purposes of assisting 

2 States in meeting administrative costs by reason of 

3 the amendments referred to in paragraph (1). 

4 There are appropriated from the general fund of the Treas5 ury, without fiscal year limitation, the sums referred to in 

6 the preceding sentence and such sums shall not be required 

7 to be repaid.’’. 

8 SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION 

9 BENEFITS. 

10 (a) FEDERAL-STATE AGREEMENTS.—Any State which 

11 desires to do so may enter into and participate in an agree12 ment under this section with the Secretary of Labor (herein13 after in this section referred to as the ‘‘Secretary’’). Any 

14 State which is a party to an agreement under this section 

15 may, upon providing 30 days’ written notice to the Sec16 retary, terminate such agreement. 

17 (b) PROVISIONS OF AGREEMENT.— 

18 (1) ADDITIONAL COMPENSATION.—Any agree19 ment under this section shall provide that the State 

20 agency of the State will make payments of regular 

21 compensation to individuals in amounts and to the 

22 extent that they would be determined if the State law 

23 of the State were applied, with respect to any week 

24 for which the individual is (disregarding this section) 

25 otherwise entitled under the State law to receive reg-
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1 ular compensation, as if such State law had been 

2 modified in a manner such that the amount of reg3 ular compensation (including dependents’ allowances) 

4 payable for any week shall be equal to the amount de5 termined under the State law (before the application 

6 of this paragraph) plus an additional $25. 

7 (2) ALLOWABLE METHODS OF PAYMENT.—Any 

8 additional compensation provided for in accordance 

9 with paragraph (1) shall be payable either— 

10 (A) as an amount which is paid at the 

11 same time and in the same manner as any reg12 ular compensation otherwise payable for the 

13 week involved; or 

14 (B) at the option of the State, by payments 

15 which are made separately from, but on the same 

16 weekly basis as, any regular compensation other17 wise payable. 

18 (c) NONREDUCTION RULE.—An agreement under this 

19 section shall not apply (or shall cease to apply) with respect 

20 to a State upon a determination by the Secretary that the 

21 method governing the computation of regular compensation 

22 under the State law of that State has been modified in a 

23 manner such that— 

24 (1) the average weekly benefit amount of regular 

25 compensation which will be payable during the period 
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1 of the agreement (determined disregarding any addi2 tional amounts attributable to the modification de3 scribed in subsection (b)(1)) will be less than 

4 (2) the average weekly benefit amount of regular 

5 compensation which would otherwise have been pay6 able during such period under the State law, as in ef7 fect on December 31, 2008. 

8 (d) PAYMENTS TO STATES.— 

9 (1) IN GENERAL.— 

10 (A) FULL REIMBURSEMENT.—There shall be 

11 paid to each State which has entered into an 

12 agreement under this section an amount equal to 

13 100 percent of— 

14 (i) the total amount of additional com15 pensation (as described in subsection (b)(1)) 

16 paid to individuals by the State pursuant 

17 to such agreement; and 

18 (ii) any additional administrative ex19 penses incurred by the State by reason of 

20 such agreement (as determined by the Sec21 retary). 

22 (B) TERMS OF PAYMENTS.—Sums payable 

23 to any State by reason of such State’s having an 

24 agreement under this section shall be payable, ei25 ther in advance or by way of reimbursement (as 
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1 determined by the Secretary), in such amounts 

2 as the Secretary estimates the State will be enti3 tled to receive under this section for each cal4 endar month, reduced or increased, as the case 

5 may be, by any amount by which the Secretary 

6 finds that his estimates for any prior calendar 

7 month were greater or less than the amounts 

8 which should have been paid to the State. Such 

9 estimates may be made on the basis of such sta10 tistical, sampling, or other method as may be 

11 agreed upon by the Secretary and the State 

12 agency of the State involved. 

13 (2) CERTIFICATIONS.—The Secretary shall from 

14 time to time certify to the Secretary of the Treasury 

15 for payment to each State the sums payable to such 

16 State under this section. 

17 (3) APPROPRIATION.—There are appropriated 

18 from the general fund of the Treasury, without fiscal 

19 year limitation, such sums as may be necessary for 

20 purposes of this subsection. 

21 (e) APPLICABILITY.— 

22 (1) IN GENERAL.—An agreement entered into 

23 under this section shall apply to weeks of unemploy24 ment— 
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1 (A) beginning after the date on which such 

2 agreement is entered into; and 

3 (B) ending before January 1, 2010. 

4 (2) TRANSITION RULE FOR INDIVIDUALS REMAIN5 ING ENTITLED TO REGULAR COMPENSATION AS OF

6 JANUARY 1, 2010.—In the case of any individual who, 

7 as of the date specified in paragraph (1)(B), has not 

8 yet exhausted all rights to regular compensation 

9 under the State law of a State with respect to a ben10 efit year that began before such date, additional com11 pensation (as described in subsection (b)(1)) shall 

12 continue to be payable to such individual for any 

13 week beginning on or after such date for which the in14 dividual is otherwise eligible for regular compensation 

15 with respect to such benefit year. 

16 (3) TERMINATION.—Notwithstanding any other 

17 provision of this subsection, no additional compensa18 tion (as described in subsection (b)(1)) shall be pay19 able for any week beginning after June 30, 2010. 

20 (f) FRAUD AND OVERPAYMENTS.—The provisions of 

21 section 4005 of the Supplemental Appropriations Act, 2008 

22 (Public Law 110–252; 122 Stat. 2356) shall apply with re23 spect to additional compensation (as described in subsection 

24 (b)(1)) to the same extent and in the same manner as in 

25 the case of emergency unemployment compensation. 
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1 (g) APPLICATION TO OTHER UNEMPLOYMENT BENE2 FITS.— 

3 (1) IN GENERAL.—Each agreement under this 

4 section shall include provisions to provide that the 

5 purposes of the preceding provisions of this section 

6 shall be applied with respect to unemployment bene7 fits described in subsection (i)(3) to the same extent 

8 and in the same manner as if those benefits were reg9 ular compensation. 

10 (2) ELIGIBILITY AND TERMINATION RULES.—Ad11 ditional compensation (as described in subsection 

12 (b)(1))— 

13 (A) shall not be payable, pursuant to this 

14 subsection, with respect to any unemployment 

15 benefits described in subsection (i)(3) for any 

16 week beginning on or after the date specified in 

17 subsection (e)(1)(B), except in the case of an in18 dividual who was eligible to receive additional 

19 compensation (as so described) in connection 

20 with any regular compensation or any unem21 ployment benefits described in subsection (i)(3) 

22 for any period of unemployment ending before 

23 such date; and 
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1 (B) shall in no event be payable for any 

2 week beginning after the date specified in sub3 section (e)(3). 

4 (h) DISREGARD OF ADDITIONAL COMPENSATION FOR

5 PURPOSES OF MEDICAID AND SCHIP.—A State that enters 

6 into an agreement under this section shall disregard the 

7 monthly equivalent of $25 per week for any individual who 

8 receives additional compensation under subsection (b)(1) in 

9 considering the amount of income of the individual for any 

10 purposes under the Medicaid program under title XIX of 

11 the Social Security Act and the State Children’s Health In12 surance Program under title XXI of such Act. 

13 (i) DEFINITIONS.—For purposes of this section— 

14 (1) the terms ‘‘compensation’’, ‘‘regular com15 pensation’’, ‘‘benefit year’’, ‘‘State’’, ‘‘State agency’’, 

16 ‘‘State law’’, and ‘‘week’’ have the respective meanings 

17 given such terms under section 205 of the Federal18 State Extended Unemployment Compensation Act of 

19 1970 (26 U.S.C. 3304 note); 

20 (2) the term ‘‘emergency unemployment com21 pensation’’ means emergency unemployment com22 pensation under title IV of the Supplemental Appro23 priations Act, 2008 (Public Law 110–252; 122 Stat. 

24 2353); and 
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1 (3) any reference to unemployment benefits de2 scribed in this paragraph shall be considered to refer 

3 to— 

4 (A) extended compensation (as defined by 

5 section 205 of the Federal-State Extended Unem6 ployment Compensation Act of 1970); and 

7 (B) unemployment compensation (as de8 fined by section 85(b) of the Internal Revenue 

9 Code of 1986) provided under any program ad10 ministered by a State under an agreement with 

11 the Secretary. 

12 SEC. 2003. UNEMPLOYMENT COMPENSATION MODERNIZA13 TION. 

14 (a) IN GENERAL.—Section 903 of the Social Security 

15 Act (42 U.S.C. 1103) is amended by adding at the end the 

16 following: 

17 ‘‘Special Transfers for Modernization 

18 ‘‘(f)(1)(A) In addition to any other amounts, the Sec19 retary of Labor shall provide for the making of unemploy20 ment compensation modernization incentive payments 

21 (hereinafter ‘incentive payments’) to the accounts of the 

22 States in the Unemployment Trust Fund, by transfer from 

23 amounts reserved for that purpose in the Federal unemploy24 ment account, in accordance with succeeding provisions of 

25 this subsection. 
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1 ‘‘(B) The maximum incentive payment allowable 

2 under this subsection with respect to any State shall, as 

3 determined by the Secretary of Labor, be equal to the 

4 amount obtained by multiplying $7,000,000,000 by the 

5 same ratio as would apply under subsection (a)(2)(B) for 

6 purposes of determining such State’s share of any excess 

7 amount (as described in subsection (a)(1)) that would have 

8 been subject to transfer to State accounts, as of October 1, 

9 2008, under the provisions of subsection (a). 

10 ‘‘(C) Of the maximum incentive payment determined 

11 under subparagraph (B) with respect to a State— 

12 ‘‘(i) one-third shall be transferred to the account 

13 of such State upon a certification under paragraph 

14 (4)(B) that the State law of such State meets the re15 quirements of paragraph (2); and 

16 ‘‘(ii) the remainder shall be transferred to the ac17 count of such State upon a certification under para18 graph (4)(B) that the State law of such State meets 

19 the requirements of paragraph (3). 

20 ‘‘(2) The State law of a State meets the requirements 

21 of this paragraph if such State law— 

22 ‘‘(A) uses a base period that includes the most 

23 recently completed calendar quarter before the start of 

24 the benefit year for purposes of determining eligibility 

25 for unemployment compensation; or 
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1 ‘‘(B) provides that, in the case of an individual 

2 who would not otherwise be eligible for unemployment 

3 compensation under the State law because of the use 

4 of a base period that does not include the most re5 cently completed calendar quarter before the start of 

6 the benefit year, eligibility shall be determined using 

7 a base period that includes such calendar quarter. 

8 ‘‘(3) The State law of a State meets the requirements 

9 of this paragraph if such State law includes provisions to 

10 carry out at least 2 of the following subparagraphs: 

11 ‘‘(A) An individual shall not be denied regular 

12 unemployment compensation under any State law 

13 provisions relating to availability for work, active 

14 search for work, or refusal to accept work, solely be15 cause such individual is seeking only part-time (and 

16 not full-time) work, except that the State law provi17 sions carrying out this subparagraph may exclude an 

18 individual if a majority of the weeks of work in such 

19 individual’s base period do not include part-time 

20 work. 

21 ‘‘(B) An individual shall not be disqualified 

22 from regular unemployment compensation for sepa23 rating from employment if that separation is for any 

24 compelling family reason. For purposes of this sub-
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1 paragraph, the term ‘compelling family reason’ 

2 means the following: 

3 ‘‘(i) Domestic violence, verified by such rea4 sonable and confidential documentation as the 

5 State law may require, which causes the indi6 vidual reasonably to believe that such individ7 ual’s continued employment would jeopardize the 

8 safety of the individual or of any member of the 

9 individual’s immediate family (as defined by the 

10 Secretary of Labor). 

11 ‘‘(ii) The illness or disability of a member 

12 of the individual’s immediate family (as defined 

13 by the Secretary of Labor). 

14 ‘‘(iii) The need for the individual to accom15 pany such individual’s spouse— 

16 ‘‘(I) to a place from which it is im17 practical for such individual to commute; 

18 and 

19 ‘‘(II) due to a change in location of the 

20 spouse’s employment. 

21 ‘‘(C) Weekly unemployment compensation is 

22 payable under this subparagraph to any individual 

23 who is unemployed (as determined under the State 

24 unemployment compensation law), has exhausted all 

25 rights to regular unemployment compensation under 
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1 the State law, and is enrolled and making satisfac2 tory progress in a State-approved training program 

3 or in a job training program authorized under the 

4 Workforce Investment Act of 1998. Such programs 

5 shall prepare individuals who have been separated 

6 from a declining occupation, or who have been invol7 untarily and indefinitely separated from employment 

8 as a result of a permanent reduction of operations at 

9 the individual’s place of employment, for entry into 

10 a high-demand occupation. The amount of unemploy11 ment compensation payable under this subparagraph 

12 to an individual for a week of unemployment shall be 

13 equal to the individual’s average weekly benefit 

14 amount (including dependents’ allowances) for the 

15 most recent benefit year, and the total amount of un16 employment compensation payable under this sub17 paragraph to any individual shall be equal to at least 

18 26 times the individual’s average weekly benefit 

19 amount (including dependents’ allowances) for the 

20 most recent benefit year. 

21 ‘‘(D) Dependents’ allowances are provided, in the 

22 case of any individual who is entitled to receive reg23 ular unemployment compensation and who has any 

24 dependents (as defined by State law), in an amount 

25 equal to at least $15 per dependent per week, subject 
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1 to any aggregate limitation on such allowances which 

2 the State law may establish (but which aggregate lim3 itation on the total allowance for dependents paid to 

4 an individual may not be less than $50 for each week 

5 of unemployment or 50 percent of the individual’s 

6 weekly benefit amount for the benefit year, whichever 

7 is less). 

8 ‘‘(4)(A) Any State seeking an incentive payment under 

9 this subsection shall submit an application therefor at such 

10 time, in such manner, and complete with such information 

11 as the Secretary of Labor may within 60 days after the 

12 date of the enactment of this subsection prescribe (whether 

13 by regulation or otherwise), including information relating 

14 to compliance with the requirements of paragraph (2) or 

15 (3), as well as how the State intends to use the incentive 

16 payment to improve or strengthen the State’s unemploy17 ment compensation program. The Secretary of Labor shall, 

18 within 30 days after receiving a complete application, no19 tify the State agency of the State of the Secretary’s findings 

20 with respect to the requirements of paragraph (2) or (3) 

21 (or both). 

22 ‘‘(B)(i) If the Secretary of Labor finds that the State 

23 law provisions (disregarding any State law provisions 

24 which are not then currently in effect as permanent law 

25 or which are subject to discontinuation) meet the require-
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1 ments of paragraph (2) or (3), as the case may be, the Sec2 retary of Labor shall thereupon make a certification to that 

3 effect to the Secretary of the Treasury, together with a cer4 tification as to the amount of the incentive payment to be 

5 transferred to the State account pursuant to that finding. 

6 The Secretary of the Treasury shall make the appropriate 

7 transfer within 7 days after receiving such certification. 

8 ‘‘(ii) For purposes of clause (i), State law provisions 

9 which are to take effect within 12 months after the date 

10 of their certification under this subparagraph shall be con11 sidered to be in effect as of the date of such certification. 

12 ‘‘(C)(i) No certification of compliance with the require13 ments of paragraph (2) or (3) may be made with respect 

14 to any State whose State law is not otherwise eligible for 

15 certification under section 303 or approvable under section 

16 3304 of the Federal Unemployment Tax Act. 

17 ‘‘(ii) No certification of compliance with the require18 ments of paragraph (3) may be made with respect to any 

19 State whose State law is not in compliance with the re20 quirements of paragraph (2). 

21 ‘‘(iii) No application under subparagraph (A) may be 

22 considered if submitted before the date of the enactment of 

23 this subsection or after the latest date necessary (as specified 

24 by the Secretary of Labor) to ensure that all incentive pay25 ments under this subsection are made before October 1, 
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1 2010. In the case of a State in which the first day of the 

2 first regularly scheduled session of the State legislature be3 ginning after the date of enactment of this subsection begins 

4 after December 31, 2010, the preceding sentence shall be ap5 plied by substituting ‘October 1, 2011’ for ‘October 1, 2010’. 

6 ‘‘(5)(A) Except as provided in subparagraph (B), any 

7 amount transferred to the account of a State under this sub8 section may be used by such State only in the payment of 

9 cash benefits to individuals with respect to their unemploy10 ment (including for dependents’ allowances and for unem11 ployment compensation under paragraph (3)(C)), exclusive 

12 of expenses of administration. 

13 ‘‘(B) A State may, subject to the same conditions as 

14 set forth in subsection (c)(2) (excluding subparagraph (B) 

15 thereof, and deeming the reference to ‘subsections (a) and 

16 (b)’ in subparagraph (D) thereof to include this subsection), 

17 use any amount transferred to the account of such State 

18 under this subsection for the administration of its unem19 ployment compensation law and public employment offices. 

20 ‘‘(6) Out of any money in the Federal unemployment 

21 account not otherwise appropriated, the Secretary of the 

22 Treasury shall reserve $7,000,000,000 for incentive pay23 ments under this subsection. Any amount so reserved shall 

24 not be taken into account for purposes of any determination 

25 under section 902, 910, or 1203 of the amount in the Fed-
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1 eral unemployment account as of any given time. Any 

2 amount so reserved for which the Secretary of the Treasury 

3 has not received a certification under paragraph (4)(B) by 

4 the deadline described in paragraph (4)(C)(iii) shall, upon 

5 the close of fiscal year 2011, become unrestricted as to use 

6 as part of the Federal unemployment account. 

7 ‘‘(7) For purposes of this subsection, the terms ‘benefit 

8 year’, ‘base period’, and ‘week’ have the respective meanings 

9 given such terms under section 205 of the Federal-State Ex10 tended Unemployment Compensation Act of 1970 (26 

11 U.S.C. 3304 note). 

12 ‘‘Special Transfer in Fiscal Year 2009 for Administration 

13 ‘‘(g)(1) In addition to any other amounts, the Sec14 retary of the Treasury shall transfer from the employment 

15 security administration account to the account of each 

16 State in the Unemployment Trust Fund, within 30 days 

17 after the date of the enactment of this subsection, the 

18 amount determined with respect to such State under para19 graph (2). 

20 ‘‘(2) The amount to be transferred under this sub21 section to a State account shall (as determined by the Sec22 retary of Labor and certified by such Secretary to the Sec23 retary of the Treasury) be equal to the amount obtained 

24 by multiplying $500,000,000 by the same ratio as deter25 mined under subsection (f)(1)(B) with respect to such State. 
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1 ‘‘(3) Any amount transferred to the account of a State 

2 as a result of the enactment of this subsection may be used 

3 by the State agency of such State only in the payment of 

4 expenses incurred by it for— 

5 ‘‘(A) the administration of the provisions of its 

6 State law carrying out the purposes of subsection 

7 (f)(2) or any subparagraph of subsection (f)(3); 

8 ‘‘(B) improved outreach to individuals who 

9 might be eligible for regular unemployment compensa10 tion by virtue of any provisions of the State law 

11 which are described in subparagraph (A); 

12 ‘‘(C) the improvement of unemployment benefit 

13 and unemployment tax operations, including respond14 ing to increased demand for unemployment com15 pensation; and 

16 ‘‘(D) staff-assisted reemployment services for un17 employment compensation claimants.’’. 

18 (b) REGULATIONS.—The Secretary of Labor may pre19 scribe any regulations, operating instructions, or other 

20 guidance necessary to carry out the amendment made by 

21 subsection (a). 
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1 SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH AD2 VANCES. 

3 Section 1202(b) of the Social Security Act (42 U.S.C. 

4 1322(b)) is amended by adding at the end the following new 

5 paragraph: 

6 ‘‘(10)(A) With respect to the period beginning on the 

7 date of enactment of this paragraph and ending on Decem8 ber 31, 2010— 

9 ‘‘(i) any interest payment otherwise due from a 

10 State under this subsection during such period shall 

11 be deemed to have been made by the State; and 

12 ‘‘(ii) no interest shall accrue on any advance or 

13 advances made under section 1201 to a State during 

14 such period. 

15 ‘‘(B) The provisions of subparagraph (A) shall have 

16 no effect on the requirement for interest payments under 

17 this subsection after the period described in such subpara18 graph or on the accrual of interest under this subsection 

19 after such period.’’. 

20 Subtitle B—Assistance for 

21 Vulnerable Individuals 

22 SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM. 

23 (a) TEMPORARY FUND.— 

24 (1) IN GENERAL.—Section 403 of the Social Se25 curity Act (42 U.S.C. 603) is amended by adding at 

26 the end the following: 
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1 ‘‘(c) EMERGENCY FUND.— 

2 ‘‘(1) ESTABLISHMENT.—There is established in 

3 the Treasury of the United States a fund which shall 

4 be known as the ‘Emergency Contingency Fund for 

5 State Temporary Assistance for Needy Families Pro6 grams’ (in this subsection referred to as the ‘Emer7 gency Fund’). 

8 ‘‘(2) DEPOSITS INTO FUND.— 

9 ‘‘(A) IN GENERAL.—Out of any money in 

10 the Treasury of the United States not otherwise 

11 appropriated, there are appropriated for fiscal 

12 year 2009, $3,000,000,000 for payment to the 

13 Emergency Fund. 

14 ‘‘(B) AVAILABILITY AND USE OF FUNDS.— 

15 The amounts appropriated to the Emergency 

16 Fund under subparagraph (A) shall remain 

17 available through fiscal year 2010 and shall be 

18 used to make grants to States in each of fiscal 

19 years 2009 and 2010 in accordance with the re20 quirements of paragraph (3). 

21 ‘‘(C) LIMITATION.—In no case may the Sec22 retary make a grant from the Emergency Fund 

23 for a fiscal year after fiscal year 2010. 

24 ‘‘(3) GRANTS.— 
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1 ‘‘(A) GRANT RELATED TO CASELOAD IN2 CREASES.— 

3 ‘‘(i) IN GENERAL.—For each calendar 

4 quarter in fiscal year 2009 or 2010, the 

5 Secretary shall make a grant from the 

6 Emergency Fund to each State that— 

7 ‘‘(I) requests a grant under this 

8 subparagraph for the quarter; and 

9 ‘‘(II) meets the requirement of 

10 clause (ii) for the quarter. 

11 ‘‘(ii) CASELOAD INCREASE REQUIRE12 MENT.—A State meets the requirement of 

13 this clause for a quarter if the average 

14 monthly assistance caseload of the State for 

15 the quarter exceeds the average monthly as16 sistance caseload of the State for the cor17 responding quarter in the emergency fund 

18 base year of the State. 

19 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

20 paragraph (5), the amount of the grant to 

21 be made to a State under this subparagraph 

22 for a quarter shall be 80 percent of the 

23 amount (if any) by which the total expendi24 tures of the State for basic assistance (as de25 fined by the Secretary) in the quarter, 
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1 whether under the State program funded 

2 under this part or as qualified State ex3 penditures, exceeds the total expenditures of 

4 the State for such assistance for the cor5 responding quarter in the emergency fund 

6 base year of the State. 

7 ‘‘(B) GRANT RELATED TO INCREASED EX8 PENDITURES FOR NON-RECURRENT SHORT TERM

9 BENEFITS.— 

10 ‘‘(i) IN GENERAL.—For each calendar 

11 quarter in fiscal year 2009 or 2010, the 

12 Secretary shall make a grant from the 

13 Emergency Fund to each State that— 

14 ‘‘(I) requests a grant under this 

15 subparagraph for the quarter; and 

16 ‘‘(II) meets the requirement of 

17 clause (ii) for the quarter. 

18 ‘‘(ii) NON-RECURRENT SHORT TERM

19 EXPENDITURE REQUIREMENT.—A State 

20 meets the requirement of this clause for a 

21 quarter if the total expenditures of the State 

22 for non-recurrent short term benefits in the 

23 quarter, whether under the State program 

24 funded under this part or as qualified State 

25 expenditures, exceeds the total such expendi-
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1 tures of the State for non-recurrent short 

2 term benefits in the corresponding quarter 

3 in the emergency fund base year of the 

4 State. 

5 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

6 paragraph (5), the amount of the grant to 

7 be made to a State under this subparagraph 

8 for a quarter shall be an amount equal to 

9 80 percent of the excess described in clause 

10 (ii). 

11 ‘‘(C) GRANT RELATED TO INCREASED EX12 PENDITURES FOR SUBSIDIZED EMPLOYMENT.— 

13 ‘‘(i) IN GENERAL.—For each calendar 

14 quarter in fiscal year 2009 or 2010, the 

15 Secretary shall make a grant from the 

16 Emergency Fund to each State that— 

17 ‘‘(I) requests a grant under this 

18 subparagraph for the quarter; and 

19 ‘‘(II) meets the requirement of 

20 clause (ii) for the quarter. 

21 ‘‘(ii) SUBSIDIZED EMPLOYMENT EX22 PENDITURE REQUIREMENT.—A State meets 

23 the requirement of this clause for a quarter 

24 if the total expenditures of the State for sub25 sidized employment in the quarter, whether 
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1 under the State program funded under this 

2 part or as qualified State expenditures, ex3 ceeds the total of such expenditures of the 

4 State in the corresponding quarter in the 

5 emergency fund base year of the State. 

6 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

7 paragraph (5), the amount of the grant to 

8 be made to a State under this subparagraph 

9 for a quarter shall be an amount equal to 

10 80 percent of the excess described in clause 

11 (ii). 

12 ‘‘(4) AUTHORITY TO MAKE NECESSARY ADJUST13 MENTS TO DATA AND COLLECT NEEDED DATA.—In de14 termining the size of the caseload of a State and the 

15 expenditures of a State for basic assistance, non-re16 current short-term benefits, and subsidized employ17 ment, during any period for which the State requests 

18 funds under this subsection, and during the emer19 gency fund base year of the State, the Secretary may 

20 make appropriate adjustments to the data to ensure 

21 that the data reflect expenditures under the State pro22 gram funded under this part and qualified State ex23 penditures. The Secretary may develop a mechanism 

24 for collecting expenditure data, including procedures 
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1 which allow States to make reasonable estimates, and 

2 may set deadlines for making revisions to the data. 

3 ‘‘(5) LIMITATION.—The total amount payable to 

4 a single State under subsection (b) and this subsection 

5 for a fiscal year shall not exceed 25 percent of the 

6 State family assistance grant. 

7 ‘‘(6) LIMITATIONS ON USE OF FUNDS.—A State 

8 to which an amount is paid under this subsection 

9 may use the amount only as authorized by section 

10 404. 

11 ‘‘(7) TIMING OF IMPLEMENTATION.—The Sec12 retary shall implement this subsection as quickly as 

13 reasonably possible, pursuant to appropriate guidance 

14 to States. 

15 ‘‘(8) DEFINITIONS.—In this subsection: 

16 ‘‘(A) AVERAGE MONTHLY ASSISTANCE CASE17 LOAD DEFINED.—The term ‘average monthly as18 sistance caseload’ means, with respect to a State 

19 and a quarter, the number of families receiving 

20 assistance during the quarter under the State 

21 program funded under this part or as qualified 

22 State expenditures, subject to adjustment under 

23 paragraph (4). 

24 ‘‘(B) EMERGENCY FUND BASE YEAR.— 
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1 ‘‘(i) IN GENERAL.—The term ‘emer2 gency fund base year’ means, with respect 

3 to a State and a category described in 

4 clause (ii), whichever of fiscal year 2007 or 

5 2008 is the fiscal year in which the amount 

6 described by the category with respect to the 

7 State is the lesser. 

8 ‘‘(ii) CATEGORIES DESCRIBED.—The 

9 categories described in this clause are the 

10 following: 

11 ‘‘(I) The average monthly assist12 ance caseload of the State. 

13 ‘‘(II) The total expenditures of the 

14 State for non-recurrent short term ben15 efits, whether under the State program 

16 funded under this part or as qualified 

17 State expenditures. 

18 ‘‘(III) The total expenditures of 

19 the State for subsidized employment, 

20 whether under the State program fund21 ed under this part or as qualified State 

22 expenditures. 

23 ‘‘(C) QUALIFIED STATE EXPENDITURES.— 

24 The term ‘qualified State expenditures’ has the 

25 meaning given the term in section 409(a)(7).’’. 
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1 (2) REPEAL.—Effective October 1, 2010, sub2 section (c) of section 403 of the Social Security Act 

3 (42 U.S.C. 603) (as added by paragraph (1)) is re4 pealed. 

5 (b) TEMPORARY MODIFICATION OF CASELOAD REDUC6 TION CREDIT.—Section 407(b)(3)(A)(i) of such Act (42 

7 U.S.C. 607(b)(3)(A)(i)) is amended by inserting ‘‘(or if the 

8 immediately preceding fiscal year is fiscal year 2008, 2009, 

9 or 2010, then, at State option, during the emergency fund 

10 base year of the State with respect to the average monthly 

11 assistance caseload of the State (within the meaning of sec12 tion 403(c)(8)(B), except that, if a State elects such option 

13 for fiscal year 2008, the emergency fund base year of the 

14 State with respect to such caseload shall be fiscal year 

15 2007))’’ before ‘‘under the State’’. 

16 (c) DISREGARD FROM LIMITATION ON TOTAL PAY17 MENTS TO TERRITORIES.—Section 1108(a)(2) of the Social 

18 Security Act (42 U.S.C. 1308(a)(2)) is amended by insert19 ing ‘‘403(c)(3),’’ after ‘‘403(a)(5),’’. 

20 (d) EFFECTIVE DATE.—The amendments made by this 

21 section shall take effect on the date of the enactment of this 

22 Act. 

23 SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS. 

24 (a) EXTENSION THROUGH FISCAL YEAR 2010.—Sec25 tion 7101(a) of the Deficit Reduction Act of 2005 (Public 
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1 Law 109–171; 120 Stat. 135), as amended by section 301(a) 

2 of the Medicare Improvements for Patients and Providers 

3 Act of 2008 (Public Law 110–275), is amended by striking 

4 ‘‘fiscal year 2009’’ and inserting ‘‘fiscal year 2010’’. 

5 (b) CONFORMING AMENDMENT.—Section 

6 403(a)(3)(H)(ii) of the Social Security Act (42 U.S.C. 

7 603(a)(3)(H)(ii)) is amended to read as follows: 

8 ‘‘(ii) subparagraph (G) shall be ap9 plied as if ‘fiscal year 2010’ were sub10 stituted for ‘fiscal year 2001’; and’’. 

11 SEC. 2103. CLARIFICATION OF AUTHORITY OF STATES TO 

12 USE TANF FUNDS CARRIED OVER FROM 

13 PRIOR YEARS TO PROVIDE TANF BENEFITS 

14 AND SERVICES. 

15 Section 404(e) of the Social Security Act (42 U.S.C. 

16 604(e)) is amended to read as follows: 

17 ‘‘(e) AUTHORITY TO CARRY OVER CERTAIN AMOUNTS

18 FOR BENEFITS OR SERVICES OR FOR FUTURE CONTIN19 GENCIES.—A State or tribe may use a grant made to the 

20 State or tribe under this part for any fiscal year to provide, 

21 without fiscal year limitation, any benefit or service that 

22 may be provided under the State or tribal program funded 

23 under this part.’’. 
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1 SEC. 2104. TEMPORARY REINSTATEMENT OF AUTHORITY TO 

2 PROVIDE FEDERAL MATCHING PAYMENTS 

3 FOR STATE SPENDING OF CHILD SUPPORT 

4 INCENTIVE PAYMENTS. 

5 During the period that begins on October 1, 2008, and 

6 ends on December 31, 2010, section 455(a)(1) of the Social 

7 Security Act (42 U.S.C. 655(a)(1)) shall be applied without 

8 regard to the amendment made by section 7309(a) of the 

9 Deficit Reduction Act of 2005 (Public Law 109–171, 120 

10 Stat. 147). 

11 TITLE III—HEALTH INSURANCE 

12 ASSISTANCE 

13 SEC. 3000. TABLE OF CONTENTS OF TITLE. 

14 The table of contents for this title is as follows: 

TITLE III—HEALTH INSURANCE ASSISTANCE 

Sec. 3000. Table of contents of title. 

Subtitle A—Premium Subsidies for COBRA Continuation Coverage for 

Unemployed Workers 

Sec. 3001. Premium assistance for COBRA benefits. 

Subtitle B—Transitional Medical Assistance (TMA) 

Sec. 3101. Extension of transitional medical assistance (TMA). 

Subtitle C—Extension of the Qualified Individual (QI) Program 

Sec. 3201. Extension of the qualifying individual (QI) program. 

Subtitle D—Other Provisions 

Sec. 3301. Premiums and cost sharing protections under Medicaid, eligibility determinations under Medicaid and CHIP, and protection of certain Indian property from Medicaid estate recovery. 

Sec. 3302. Rules applicable under Medicaid and CHIP to managed care entities 

with respect to Indian enrollees and Indian health care providers and Indian managed care entities. 
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Sec. 3303. Consultation on Medicaid, CHIP, and other health care programs 

funded under the Social Security Act involving Indian Health 

Programs and Urban Indian Organizations. 

Sec. 3304. Application of prompt pay requirements to nursing facilities. 

Sec. 3305. Period of application; sunset. 

1 Subtitle A—Premium Subsidies for 

2 COBRA Continuation Coverage 

3 for Unemployed Workers 

4 SEC. 3001. PREMIUM ASSISTANCE FOR COBRA BENEFITS. 

5 (a) TABLE OF CONTENTS OF SUBTITLE.—The table of 

6 contents of this subtitle is as follows: 

Sec. 3001. Premium assistance for COBRA benefits. 

7 (b) PREMIUM ASSISTANCE FOR COBRA CONTINU8 ATION COVERAGE FOR UNEMPLOYED WORKERS AND THEIR

9 FAMILIES.— 

10 (1) PROVISION OF PREMIUM ASSISTANCE.— 

11 (A) REDUCTION OF PREMIUMS PAYABLE.— 

12 In the case of any premium for a month of cov13 erage beginning after the date of the enactment 

14 of the Act for COBRA continuation coverage 

15 with respect to any assistance eligible indi16 vidual, such individual shall be treated for pur17 poses of any COBRA continuation provision as 

18 having paid the amount of such premium if such 

19 individual pays 50 percent of the amount of such 

20 premium (as determined without regard to this 

21 subsection). 

22 (B) PLAN ENROLLMENT OPTION.— 
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1 (i) IN GENERAL.—Notwithstanding the 

2 COBRA continuation provisions, an assist3 ance eligible individual may, not later than 

4 90 days after the date of notice of the plan 

5 enrollment option described in this subpara6 graph, elect to enroll in coverage under a 

7 plan offered by the employer involved, or the 

8 employee organization involved (including, 

9 for this purpose, a joint board of trustees of 

10 a multiemployer trust affiliated with one or 

11 more multiemployer plans), that is different 

12 than coverage under the plan in which such 

13 individual was enrolled at the time the 

14 qualifying event occurred, and such cov15 erage shall be treated as COBRA continu16 ation coverage for purposes of the applicable 

17 COBRA continuation coverage provision. 

18 (ii) REQUIREMENTS.—An assistance 

19 eligible individual may elect to enroll in 

20 different coverage as described in clause (i) 

21 only if— 

22 (I) the employer involved has 

23 made a determination that such em24 ployer will permit assistance eligible 

25 individuals to enroll in different cov-
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1 erage as provided for this subpara2 graph; 

3 (II) the premium for such dif4 ferent coverage does not exceed the pre5 mium for coverage in which the indi6 vidual was enrolled at the time the 

7 qualifying event occurred; 

8 (III) the different coverage in 

9 which the individual elects to enroll is 

10 coverage that is also offered to the ac11 tive employees of the employer at the 

12 time at which such election is made; 

13 and 

14 (IV) the different coverage is 

15 not— 

16 (aa) coverage that provides 

17 only dental, vision, counseling, or 

18 referral services (or a combination 

19 of such services); 

20 (bb) a health flexible spend21 ing account or health reimburse22 ment arrangement; or 

23 (cc) coverage that provides 

24 coverage for services or treatments 

25 furnished in an on-site medical 
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1 facility maintained by the em2 ployer and that consists primarily 

3 of first-aid services, prevention 

4 and wellness care, or similar care 

5 (or a combination of such care). 

6 (C) PREMIUM REIMBURSEMENT.—For pro7 visions providing the balance of such premium, 

8 see section 6432 of the Internal Revenue Code of 

9 1986, as added by paragraph (12). 

10 (2) LIMITATION OF PERIOD OF PREMIUM ASSIST11 ANCE.— 

12 (A) IN GENERAL.—Paragraph (1)(A) shall 

13 not apply with respect to any assistance eligible 

14 individual for months of coverage beginning on 

15 or after the earlier of— 

16 (i) the first date that such individual 

17 is eligible for coverage under any other 

18 group health plan (other than coverage con19 sisting of only dental, vision, counseling, or 

20 referral services (or a combination thereof), 

21 coverage under a health reimbursement ar22 rangement or a health flexible spending ar23 rangement, or coverage of treatment that is 

24 furnished in an on-site medical facility 

25 maintained by the employer and that con-
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1 sists primarily of first-aid services, preven2 tion and wellness care, or similar care (or 

3 a combination thereof)) or is eligible for 

4 benefits under title XVIII of the Social Se5 curity Act; or 

6 (ii) the earliest of— 

7 (I) the date which is 12 months 

8 after the first day of first month that 

9 paragraph (1)(A) applies with respect 

10 to such individual, 

11 (II) the date following the expira12 tion of the maximum period of con13 tinuation coverage required under the 

14 applicable COBRA continuation cov15 erage provision, or 

16 (III) the date following the expi17 ration of the period of continuation 

18 coverage allowed under paragraph 

19 (4)(B)(ii). 

20 (B) TIMING OF ELIGIBILITY FOR ADDI21 TIONAL COVERAGE.—For purposes of subpara22 graph (A)(i), an individual shall not be treated 

23 as eligible for coverage under a group health 

24 plan before the first date on which such indi25 vidual could be covered under such plan. 
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1 (C) NOTIFICATION REQUIREMENT.—An as2 sistance eligible individual shall notify in writ3 ing the group health plan with respect to which 

4 paragraph (1)(A) applies if such paragraph 

5 ceases to apply by reason of subparagraph 

6 (A)(i). Such notice shall be provided to the group 

7 health plan in such time and manner as may be 

8 specified by the Secretary of Labor. 

9 (3) ASSISTANCE ELIGIBLE INDIVIDUAL.—For 

10 purposes of this section, the term ‘‘assistance eligible 

11 individual’’ means any qualified beneficiary if— 

12 (A) at any time during the period that be13 gins with September 1, 2008, and ends with De14 cember 31, 2009, such qualified beneficiary is el15 igible for COBRA continuation coverage, 

16 (B) such qualified beneficiary elects such 

17 coverage, and 

18 (C) the qualifying event with respect to the 

19 COBRA continuation coverage consists of the in20 voluntary termination of the covered employee’s 

21 employment and occurred during such period. 

22 (4) EXTENSION OF ELECTION PERIOD AND EF23 FECT ON COVERAGE.— 

24 (A) IN GENERAL.—Notwithstanding section 

25 605(a) of the Employee Retirement Income Secu-
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1 rity Act of 1974, section 4980B(f)(5)(A) of the 

2 Internal Revenue Code of 1986, section 2205(a) 

3 of the Public Health Service Act, and section 

4 8905a(c)(2) of title 5, United States Code, in the 

5 case of an individual who is a qualified bene6 ficiary described in paragraph (3)(A) as of the 

7 date of the enactment of this Act and has not 

8 made the election referred to in paragraph 

9 (3)(B) as of such date, such individual may elect 

10 the COBRA continuation coverage under the 

11 COBRA continuation coverage provisions con12 taining such sections during the 60-day period 

13 commencing with the date on which the notifica14 tion required under paragraph (7)(C) is pro15 vided to such individual. 

16 (B) COMMENCEMENT OF COVERAGE; NO

17 REACH-BACK.—Any COBRA continuation cov18 erage elected by a qualified beneficiary during 

19 an extended election period under subparagraph 

20 (A)— 

21 (i) shall commence on the date of the 

22 enactment of this Act, and 

23 (ii) shall not extend beyond the period 

24 of COBRA continuation coverage that 

25 would have been required under the applica-
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1 ble COBRA continuation coverage provision 

2 if the coverage had been elected as required 

3 under such provision. 

4 (C) PREEXISTING CONDITIONS.—With re5 spect to a qualified beneficiary who elects 

6 COBRA continuation coverage pursuant to sub7 paragraph (A), the period— 

8 (i) beginning on the date of the quali9 fying event, and 

10 (ii) ending with the day before the date 

11 of the enactment of this Act, 

12 shall be disregarded for purposes of determining 

13 the 63-day periods referred to in section 701)(2) 

14 of the Employee Retirement Income Security Act 

15 of 1974, section 9801(c)(2) of the Internal Rev16 enue Code of 1986, and section 2701(c)(2) of the 

17 Public Health Service Act. 

18 (5) EXPEDITED REVIEW OF DENIALS OF PRE19 MIUM ASSISTANCE.—In any case in which an indi20 vidual requests treatment as an assistance eligible in21 dividual and is denied such treatment by the group 

22 health plan by reason of such individual’s ineligi23 bility for COBRA continuation coverage, the Sec24 retary of Labor (or the Secretary of Health and 

25 Human services in connection with COBRA continu-
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1 ation coverage which is provided other than pursuant 

2 to part 6 of subtitle B of title I of the Employee Re3 tirement Income Security Act of 1974), in consulta4 tion with the Secretary of the Treasury, shall provide 

5 for expedited review of such denial. An individual 

6 shall be entitled to such review upon application to 

7 such Secretary in such form and manner as shall be 

8 provided by such Secretary. Such Secretary shall 

9 make a determination regarding such individual’s eli10 gibility within 10 business days after receipt of such 

11 individual’s application for review under this para12 graph. 

13 (6) DISREGARD OF SUBSIDIES FOR PURPOSES OF

14 FEDERAL AND STATE PROGRAMS.—Notwithstanding 

15 any other provision of law, any premium reduction 

16 with respect to an assistance eligible individual under 

17 this subsection shall not be considered income or re18 sources in determining eligibility for, or the amount 

19 of assistance or benefits provided under, any other 

20 public benefit provided under Federal law or the law 

21 of any State or political subdivision thereof. 

22 (7) NOTICES TO INDIVIDUALS.— 

23 (A) GENERAL NOTICE.— 

24 (i) IN GENERAL.—In the case of notices 

25 provided under section 606(4) of the Em-
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1 ployee Retirement Income Security Act of 

2 1974 (29 U.S.C. 1166(4)), section 

3 4980B(f)(6)(D) of the Internal Revenue 

4 Code of 1986, section 2206(4) of the Public 

5 Health Service Act (42 U.S.C. 300bb–6(4)), 

6 or section 8905a(f)(2)(A) of title 5, United 

7 States Code, with respect to individuals 

8 who, during the period described in para9 graph (3)(A), become entitled to elect 

10 COBRA continuation coverage, such notices 

11 shall include an additional notification to 

12 the recipient of— 

13 (I) the availability of premium 

14 reduction with respect to such coverage 

15 under this subsection; and 

16 (II) the option to enroll in dif17 ferent coverage if an employer that 

18 permits assistance eligible individuals 

19 to elect enrollment in different coverage 

20 (as described in paragraph (1)(B)). 

21 (ii) ALTERNATIVE NOTICE.—In the 

22 case of COBRA continuation coverage to 

23 which the notice provision under such sec24 tions does not apply, the Secretary of 

25 Labor, in consultation with the Secretary of 
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1 the Treasury and the Secretary of Health 

2 and Human Services, shall, in coordination 

3 with administrators of the group health 

4 plans (or other entities) that provide or ad5 minister the COBRA continuation coverage 

6 involved, provide rules requiring the provi7 sion of such notice. 

8 (iii) FORM.—The requirement of the 

9 additional notification under this subpara10 graph may be met by amendment of exist11 ing notice forms or by inclusion of a sepa12 rate document with the notice otherwise re13 quired. 

14 (B) SPECIFIC REQUIREMENTS.—Each addi15 tional notification under subparagraph (A) shall 

16 include— 

17 (i) the forms necessary for establishing 

18 eligibility for premium reduction under this 

19 subsection, 

20 (ii) the name, address, and telephone 

21 number necessary to contact the plan ad22 ministrator and any other person main23 taining relevant information in connection 

24 with such premium reduction, 
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1 (iii) a description of the extended elec2 tion period provided for in paragraph 

3 (4)(A), 

4 (iv) a description of the obligation of 

5 the qualified beneficiary under paragraph 

6 (2)(C) to notify the plan providing continu7 ation coverage of eligibility for subsequent 

8 coverage under another group health plan 

9 or eligibility for benefits under title XVIII 

10 of the Social Security Act and the penalty 

11 provided for failure to so notify the plan, 

12 (v) a description, displayed in a 

13 prominent manner, of the qualified bene14 ficiary’s right to a reduced premium and 

15 any conditions on entitlement to the re16 duced premium; and 

17 (vi) a description of the option of the 

18 qualified beneficiary to enroll in different 

19 coverage if the employer permits such bene20 ficiary to elect to enroll in such different 

21 coverage under paragraph (1)(B). 

22 (C) NOTICE RELATING TO RETROACTIVE

23 COVERAGE.—In the case of an individual de24 scribed in paragraph (3)(A) who has elected 

25 COBRA continuation coverage as of the date of 
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1 enactment of this Act or an individual described 

2 in paragraph (4)(A), the administrator of the 

3 group health plan (or other person) involved 

4 shall provide (within 60 days after the date of 

5 enactment of this Act) for the additional notifi6 cation required to be provided under subpara7 graph (A). 

8 (D) MODEL NOTICES.—Not later than 30 

9 days after the date of enactment of this Act, the 

10 Secretary of the Labor, in consultation with the 

11 Secretary of the Treasury and the Secretary of 

12 Health and Human Services, shall prescribe 

13 models for the additional notification required 

14 under this paragraph. 

15 (8) SAFEGUARDS.—The Secretary of the Treas16 ury shall provide such rules, procedures, regulations, 

17 and other guidance as may be necessary and appro18 priate to prevent fraud and abuse under this sub19 section. 

20 (9) OUTREACH.—The Secretary of Labor, in con21 sultation with the Secretary of the Treasury and the 

22 Secretary of Health and Human Services, shall pro23 vide outreach consisting of public education and en24 rollment assistance relating to premium reduction 

25 provided under this subsection. Such outreach shall 
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1 target employers, group health plan administrators, 

2 public assistance programs, States, insurers, and 

3 other entities as determined appropriate by such Sec4 retaries. Such outreach shall include an initial focus 

5 on those individuals electing continuation coverage 

6 who are referred to in paragraph (7)(C). Information 

7 on such premium reduction, including enrollment, 

8 shall also be made available on website of the Depart9 ments of Labor, Treasury, and Health and Human 

10 Services. 

11 (10) DEFINITIONS.—For purposes of this sub12 section— 

13 (A) ADMINISTRATOR.—The term ‘‘adminis14 trator’’ has the meaning given such term in sec15 tion 3(16) of the Employee Retirement Income 

16 Security Act of 1974 

17 (B) COBRA CONTINUATION COVERAGE.— 

18 The term ‘‘COBRA continuation coverage’’ 

19 means continuation coverage provided pursuant 

20 to part 6 of subtitle B of title I of the Employee 

21 Retirement Income Security Act of 1974 (other 

22 than under section 609), title XXII of the Public 

23 Health Service Act, section 4980B of the Internal 

24 Revenue Code of 1986 (other than subsection 

25 (f)(1) of such section insofar as it relates to pedi-
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1 atric vaccines), or section 8905a of title 5, 

2 United States Code, or under a State program 

3 that provides continuation coverage comparable 

4 to such continuation coverage. Such term does 

5 not include coverage under a health flexible 

6 spending arrangement. 

7 (C) COBRA CONTINUATION PROVISION.— 

8 The term ‘‘COBRA continuation provision’’ 

9 means the provisions of law described in sub10 paragraph (B). 

11 (D) COVERED EMPLOYEE.—The term ‘‘cov12 ered employee’’ has the meaning given such term 

13 in section 607(2) of the Employee Retirement In14 come Security Act of 1974. 

15 (E) QUALIFIED BENEFICIARY.—The term 

16 ‘‘qualified beneficiary’’ has the meaning given 

17 such term in section 607(3) of the Employee Re18 tirement Income Security Act of 1974. 

19 (F) GROUP HEALTH PLAN.—The term 

20 ‘‘group health plan’’ has the meaning given such 

21 term in section 607(1) of the Employee Retire22 ment Income Security Act of 1974. 

23 (G) STATE.—The term ‘‘State’’ includes the 

24 District of Columbia, the Commonwealth of 

25 Puerto Rico, the Virgin Islands, Guam, Amer-
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1 ican Samoa, and the Commonwealth of the 

2 Northern Mariana Islands. 

3 (11) REPORTS.— 

4 (A) INTERIM REPORT.—The Secretary of the 

5 Treasury shall submit an interim report to the 

6 Committee on Education and Labor, the Com7 mittee on Ways and Means, and the Committee 

8 on Energy and Commerce of the House of Rep9 resentatives and the Committee on Health, Edu10 cation, Labor, and Pensions and the Committee 

11 on Finance of the Senate regarding the premium 

12 reduction provided under this subsection that in13 cludes— 

14 (i) the number of individuals provided 

15 such assistance as of the date of the report; 

16 and 

17 (ii) the total amount of expenditures 

18 incurred (with administrative expenditures 

19 noted separately) in connection with such 

20 assistance as of the date of the report. 

21 (B) FINAL REPORT.—As soon as practicable 

22 after the last period of COBRA continuation cov23 erage for which premium reduction is provided 

24 under this section, the Secretary of the Treasury 
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1 shall submit a final report to each Committee re2 ferred to in subparagraph (A) that includes— 

3 (i) the number of individuals provided 

4 premium reduction under this section; 

5 (ii) the average dollar amount (month6 ly and annually) of premium reductions 

7 provided to such individuals; and 

8 (iii) the total amount of expenditures 

9 incurred (with administrative expenditures 

10 noted separately) in connection with pre11 mium reduction under this section. 

12 (12) COBRA PREMIUM ASSISTANCE.— 

13 (A) IN GENERAL.—Subchapter B of chapter 

14 65 of the Internal Revenue Code of 1986 is 

15 amended by adding at the end the following new 

16 section: 

17 ‘‘SEC. 6432. COBRA PREMIUM ASSISTANCE. 

18 ‘‘(a) IN GENERAL.—The person to whom premiums 

19 are payable under COBRA continuation coverage shall be 

20 reimbursed for the amount of premiums not paid by plan 

21 beneficiaries by reason of section 3001(b) of the American 

22 Recovery and Reinvestment Act of 2009. Such amount shall 

23 be treated as a credit against the requirement of such person 

24 to make deposits of payroll taxes and the liability of such 

25 person for payroll taxes. To the extent that such amount 
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1 exceeds the amount of such taxes, the Secretary shall pay 

2 to such person the amount of such excess. No payment may 

3 be made under this subsection to a person with respect to 

4 any assistance eligible individual until after such person 

5 has received the reduced premium from such individual re6 quired under section 3001(a)(1)(A) of such Act. 

7 ‘‘(b) PAYROLL TAXES.—For purposes of this section, 

8 the term ‘payroll taxes’ means— 

9 ‘‘(1) amounts required to be deducted and with10 held for the payroll period under section 3401 (relat11 ing to wage withholding), 

12 ‘‘(2) amounts required to be deducted for the 

13 payroll period under section 3102 (relating to FICA 

14 employee taxes), and 

15 ‘‘(3) amounts of the taxes imposed for the payroll 

16 period under section 3111 (relating to FICA employer 

17 taxes). 

18 ‘‘(c) TREATMENT OF CREDIT.—Except as otherwise 

19 provided by the Secretary, the credit described in subsection 

20 (a) shall be applied as though the employer had paid to 

21 the Secretary, on the day that the qualified beneficiary’s 

22 premium payment is received, an amount equal to such 

23 credit. 

24 ‘‘(d) TREATMENT OF PAYMENT.—For purposes of sec25 tion 1324(b)(2) of title 31, United States Code, any pay-
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1 ment under this subsection shall be treated in the same 

2 manner as a refund of the credit under section 35. 

3 ‘‘(e) REPORTING.— 

4 ‘‘(1) IN GENERAL.—Each person entitled to re5 imbursement under subsection (a) for any period 

6 shall submit such reports as the Secretary may re7 quire, including— 

8 ‘‘(A) an attestation of involuntary termi9 nation of employment for each covered employee 

10 on the basis of whose termination entitlement to 

11 reimbursement is claimed under subsection (a), 

12 and 

13 ‘‘(B) a report of the amount of payroll taxes 

14 offset under subsection (a) for the reporting pe15 riod and the estimated offsets of such taxes for 

16 the subsequent reporting period in connection 

17 with reimbursements under subsection (a). 

18 ‘‘(2) TIMING OF REPORTS RELATING TO AMOUNT

19 OF PAYROLL TAXES.—Reports required under para20 graph (1)(B) shall be submitted at the same time as 

21 deposits of taxes imposed by chapters 21, 22, and 24 

22 or at such time as is specified by the Secretary. 

23 ‘‘(f) REGULATIONS.—The Secretary may issue such 

24 regulations or other guidance as may be necessary or appro25 priate to carry out this section, including the requirement 
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1 to report information or the establishment of other methods 

2 for verifying the correct amounts of payments and credits 

3 under this section, and the application of this section to 

4 group health plans which are multiemployer plans.’’. 

5 (B) SOCIAL SECURITY TRUST FUNDS HELD

6 HARMLESS.—In determining any amount trans7 ferred or appropriated to any fund under the So8 cial Security Act, section 6432 of the Internal 

9 Revenue Code of 1986 shall not be taken into ac10 count. 

11 (C) CLERICAL AMENDMENT.—The table of 

12 sections for subchapter B of chapter 65 of the In13 ternal Revenue Code of 1986 is amended by add14 ing at the end the following new item: 

‘‘Sec. 6432. COBRA premium assistance.’’. 

15 (D) EFFECTIVE DATE.—The amendments 

16 made by this paragraph shall apply to pre17 miums to which subsection (a)(1)(A) applies. 

18 (E) SPECIAL RULE.— 

19 (i) IN GENERAL.—In the case of an as20 sistance eligible individual who pays the 

21 full premium amount required for COBRA 

22 continuation coverage for any month during 

23 the 60-day period beginning on the first day 

24 of the first month after the date of enact-
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1 ment of this Act, the person to whom such 

2 payment is made shall— 

3 (I) make a reimbursement pay4 ment to such individual for the 

5 amount of such premium paid in ex6 cess of the amount required to be paid 

7 under subsection (b)(1)(A); or 

8 (II) provide credit to the indi9 vidual for such amount in a manner 

10 that reduces one or more subsequent 

11 premium payments that the individual 

12 is required to pay under such sub13 section for the coverage involved. 

14 (ii) REIMBURSING EMPLOYER.—A per15 son to which clause (i) applies shall be re16 imbursed as provided for in section 6432 of 

17 the Internal Revenue Code of 1986 for any 

18 payment made, or credit provided, to the 

19 employee under such clause. 

20 (iii) PAYMENT OR CREDITS.—Unless it 

21 is reasonable to believe that the credit for 

22 the excess payment in clause (i)(II) will be 

23 used by the assistance eligible individual 

24 within 180 days of the date on which the 

25 person receives from the individual the pay-
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1 ment of the full premium amount, a person 

2 to which clause (i) applies shall make the 

3 payment required under such clause to the 

4 individual within 60 days of such payment 

5 of the full premium amount. If, as of any 

6 day within the 180-day period, it is no 

7 longer reasonable to believe that the credit 

8 will be used during that period, payment 

9 equal to the remainder of the credit out10 standing shall be made to the individual 

11 within 60 days of such day. 

12 (13) PENALTY FOR FAILURE TO NOTIFY HEALTH

13 PLAN OF CESSATION OF ELIGIBILITY FOR PREMIUM

14 ASSISTANCE.— 

15 (A) IN GENERAL.—Part I of subchapter B 

16 of chapter 68 of the Internal Revenue Code of 

17 1986 is amended by adding at the end the fol18 lowing new section: 

19 ‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH 

20 PLAN OF CESSATION OF ELIGIBILITY FOR 

21 COBRA PREMIUM ASSISTANCE. 

22 ‘‘(a) IN GENERAL.—Any person required to notify a 

23 group health plan under section 3001(a)(2)(C) of the Amer24 ican Recovery and Reinvestment Act of 2009 who fails to 

25 make such a notification at such time and in such manner 
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1 as the Secretary of Labor may require shall pay a penalty 

2 of 110 percent of the premium reduction provided under 

3 such section after termination of eligibility under such sub4 section. 

5 ‘‘(b) REASONABLE CAUSE EXCEPTION.—No penalty 

6 shall be imposed under subsection (a) with respect to any 

7 failure if it is shown that such failure is due to reasonable 

8 cause and not to willful neglect.’’. 

9 (B) CLERICAL AMENDMENT.—The table of 

10 sections of part I of subchapter B of chapter 68 

11 of such Code is amended by adding at the end 

12 the following new item: 

‘‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility 

for COBRA premium assistance.’’. 

13 (C) EFFECTIVE DATE.—The amendments 

14 made by this paragraph shall apply to failures 

15 occurring after the date of the enactment of this 

16 Act. 

17 (14) COORDINATION WITH HCTC.— 

18 (A) IN GENERAL.—Subsection (g) of section 

19 35 of the Internal Revenue Code of 1986 is 

20 amended by redesignating paragraph (9) as 

21 paragraph (10) and inserting after paragraph 

22 (8) the following new paragraph: 

23 ‘‘(9) COBRA PREMIUM ASSISTANCE.—In the 

24 case of an assistance eligible individual who receives 
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1 premium reduction for COBRA continuation coverage 

2 under section 3001(a) of the American Recovery and 

3 Reinvestment Act of 2009 for any month during the 

4 taxable year, such individual shall not be treated as 

5 an eligible individual, a certified individual, or a 

6 qualifying family member for purposes of this section 

7 or section 7527 with respect to such month.’’. 

8 (B) EFFECTIVE DATE.—The amendment 

9 made by subparagraph (A) shall apply to tax10 able years ending after the date of the enactment 

11 of this Act. 

12 (15) EXCLUSION OF COBRA PREMIUM ASSIST13 ANCE FROM GROSS INCOME.— 

14 (A) IN GENERAL.—Part III of subchapter B 

15 of chapter 1 of the Internal Revenue Code of 

16 1986 is amended by inserting after section 139B 

17 the following new section: 

18 ‘‘SEC. 139C. COBRA PREMIUM ASSISTANCE. 

19 ‘‘In the case of an assistance eligible individual (as 

20 defined in section 3001 of the American Recovery and Rein21 vestment Act of 2009), gross income does not include any 

22 premium reduction provided under subsection (a) of such 

23 section.’’. 

24 (B) CLERICAL AMENDMENT.—The table of 

25 sections for part III of subchapter B of chapter 
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1 1 of such Code is amended by inserting after the 

2 item relating to section 139B the following new 

3 item: 

‘‘Sec. 139C. COBRA premium assistance.’’. 

4 (C) EFFECTIVE DATE.—The amendments 

5 made by this paragraph shall apply to taxable 

6 years ending after the date of the enactment of 

7 this Act. 

8 Subtitle B—Transitional Medical 

9 Assistance (TMA) 

10 SEC. 3101. EXTENSION OF TRANSITIONAL MEDICAL ASSIST11 ANCE (TMA). 

12 (a) 18-MONTH EXTENSION.— 

13 (1) IN GENERAL.—Sections 1902(e)(1)(B) and 

14 1925(f) of the Social Security Act (42 U.S.C. 

15 1396a(e)(1)(B), 1396r–6(f)) are each amended by 

16 striking ‘‘September 30, 2003’’ and inserting ‘‘Decem17 ber 31, 2010’’. 

18 (2) EFFECTIVE DATE.—The amendments made 

19 by this subsection shall take effect on July 1, 2009. 

20 (b) STATE OPTION OF INITIAL 12-MONTH ELIGI21 BILITY.—Section 1925 of the Social Security Act (42 U.S.C. 

22 1396r–6) is amended— 

23 (1) in subsection (a)(1), by inserting ‘‘but subject 

24 to paragraph (5)’’ after ‘‘Notwithstanding any other 

25 provision of this title’’; 
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1 (2) by adding at the end of subsection (a) the fol2 lowing: 

3 ‘‘(5) OPTION OF 12-MONTH INITIAL ELIGIBILITY

4 PERIOD.—A State may elect to treat any reference in 

5 this subsection to a 6-month period (or 6 months) as 

6 a reference to a 12-month period (or 12 months). In 

7 the case of such an election, subsection (b) shall not 

8 apply.’’; and 

9 (3) in subsection (b)(1), by inserting ‘‘but subject 

10 to subsection (a)(5)’’ after ‘‘Notwithstanding any 

11 other provision of this title’’. 

12 (c) REMOVAL OF REQUIREMENT FOR PREVIOUS RE13 CEIPT OF MEDICAL ASSISTANCE.—Section 1925(a)(1) of 

14 such Act (42 U.S.C. 1396r–6(a)(1)), as amended by sub15 section (b)(1), is further amended— 

16 (1) by inserting ‘‘subparagraph (B) and’’ before 

17 ‘‘paragraph (5)’’; 

18 (2) by redesignating the matter after ‘‘REQUIRE19 MENT.—’’ as a subparagraph (A) with the heading 

20 ‘‘IN GENERAL.—’’ and with the same indentation as 

21 subparagraph (B) (as added by paragraph (3)); and 

22 (3) by adding at the end the following: 

23 ‘‘(B) STATE OPTION TO WAIVE REQUIRE24 MENT FOR 3 MONTHS BEFORE RECEIPT OF MED25 ICAL ASSISTANCE.—A State may, at its option, 
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1 elect also to apply subparagraph (A) in the case 

2 of a family that was receiving such aid for fewer 

3 than three months or that had applied for and 

4 was eligible for such aid for fewer than 3 months 

5 during the 6 immediately preceding months de6 scribed in such subparagraph.’’. 

7 (d) CMS REPORT ON ENROLLMENT AND PARTICIPA8 TION RATES UNDER TMA.—Section 1925 of such Act (42 

9 U.S.C. 1396r–6), as amended by this section, is further 

10 amended by adding at the end the following new subsection: 

11 ‘‘(g) COLLECTION AND REPORTING OF PARTICIPATION

12 INFORMATION.— 

13 ‘‘(1) COLLECTION OF INFORMATION FROM

14 STATES.—Each State shall collect and submit to the 

15 Secretary (and make publicly available), in a format 

16 specified by the Secretary, information on average 

17 monthly enrollment and average monthly participa18 tion rates for adults and children under this section 

19 and of the number and percentage of children who be20 come ineligible for medical assistance under this sec21 tion whose medical assistance is continued under an22 other eligibility category or who are enrolled under 

23 the State’s child health plan under title XXI. Such 

24 information shall be submitted at the same time and 
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1 frequency in which other enrollment information 

2 under this title is submitted to the Secretary. 

3 ‘‘(2) ANNUAL REPORTS TO CONGRESS.—Using 

4 the information submitted under paragraph (1), the 

5 Secretary shall submit to Congress annual reports 

6 concerning enrollment and participation rates de7 scribed in such paragraph.’’. 

8 (e) EFFECTIVE DATE.—The amendments made by sub9 sections (b) through (d) shall take effect on July 1, 2009. 

10 Subtitle C—Extension of the 

11 Qualified Individual (QI) Program 

12 SEC. 3201. EXTENSION OF THE QUALIFYING INDIVIDUAL 

13 (QI) PROGRAM. 

14 (a) EXTENSION.—Section 1902(a)(10)(E)(iv) of the 

15 Social Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is 

16 amended by striking ‘‘December 2009’’ and inserting ‘‘De17 cember 2010’’. 

18 (b) EXTENDING TOTAL AMOUNT AVAILABLE FOR AL19 LOCATION.—Section 1933(g) of such Act (42 U.S.C. 1396u– 

20 3(g)) is amended— 

21 (1) in paragraph (2)— 

22 (A) by striking ‘‘and’’ at the end of sub23 paragraph (K); 

24 (B) in subparagraph (L), by striking the 

25 period at the end and inserting a semicolon; and 
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1 (C) by adding at the end the following new 

2 subparagraphs: 

3 ‘‘(M) for the period that begins on January 

4 1, 2010, and ends on September 30, 2010, the 

5 total allocation amount is $412,500,000; and 

6 ‘‘(N) for the period that begins on October 

7 1, 2010, and ends on December 31, 2010, the 

8 total allocation amount is $150,000,000.’’; and 

9 (2) in paragraph (3), in the matter preceding 

10 subparagraph (A), by striking ‘‘or (L)’’ and inserting 

11 ‘‘(L), or (N)’’. 

12 Subtitle D—Other Provisions 

13 SEC. 3301. PREMIUMS AND COST SHARING PROTECTIONS 

14 UNDER MEDICAID, ELIGIBILITY DETERMINA15 TIONS UNDER MEDICAID AND CHIP, AND PRO16 TECTION OF CERTAIN INDIAN PROPERTY 

17 FROM MEDICAID ESTATE RECOVERY. 

18 (a) PREMIUMS AND COST SHARING PROTECTION

19 UNDER MEDICAID.— 

20 (1) IN GENERAL.—Section 1916 of the Social Se21 curity Act (42 U.S.C. 1396o) is amended— 

22 (A) in subsection (a), in the matter pre23 ceding paragraph (1), by striking ‘‘and (i)’’ and 

24 inserting ‘‘, (i), and (j)’’; and 
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1 (B) by adding at the end the following new 

2 subsection: 

3 ‘‘(j) NO PREMIUMS OR COST SHARING FOR INDIANS

4 FURNISHED ITEMS OR SERVICES DIRECTLY BY INDIAN

5 HEALTH PROGRAMS OR THROUGH REFERRAL UNDER CON6 TRACT HEALTH SERVICES.— 

7 ‘‘(1) NO COST SHARING FOR ITEMS OR SERVICES

8 FURNISHED TO INDIANS THROUGH INDIAN HEALTH

9 PROGRAMS.— 

10 ‘‘(A) IN GENERAL.—No enrollment fee, pre11 mium, or similar charge, and no deduction, co12 payment, cost sharing, or similar charge shall be 

13 imposed against an Indian who is furnished an 

14 item or service directly by the Indian Health 

15 Service, an Indian Tribe, Tribal Organization, 

16 or Urban Indian Organization or through refer17 ral under contract health services for which pay18 ment may be made under this title. 

19 ‘‘(B) NO REDUCTION IN AMOUNT OF PAY20 MENT TO INDIAN HEALTH PROVIDERS.—Payment 

21 due under this title to the Indian Health Service, 

22 an Indian Tribe, Tribal Organization, or Urban 

23 Indian Organization, or a health care provider 

24 through referral under contract health services 

25 for the furnishing of an item or service to an In-
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1 dian who is eligible for assistance under such 

2 title, may not be reduced by the amount of any 

3 enrollment fee, premium, or similar charge, or 

4 any deduction, copayment, cost sharing, or simi5 lar charge that would be due from the Indian but 

6 for the operation of subparagraph (A). 

7 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in this 

8 subsection shall be construed as restricting the appli9 cation of any other limitations on the imposition of 

10 premiums or cost sharing that may apply to an indi11 vidual receiving medical assistance under this title 

12 who is an Indian.’’. 

13 (2) CONFORMING AMENDMENT.—Section 

14 1916A(b)(3) of such Act (42 U.S.C. 1396o–1(b)(3)) is 

15 amended— 

16 (A) in subparagraph (A), by adding at the 

17 end the following new clause: 

18 ‘‘(vi) An Indian who is furnished an 

19 item or service directly by the Indian 

20 Health Service, an Indian Tribe, Tribal Or21 ganization or Urban Indian Organization 

22 or through referral under contract health 

23 services.’’; and 

24 (B) in subparagraph (B), by adding at the 

25 end the following new clause: 
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1 ‘‘(ix) Items and services furnished to 

2 an Indian directly by the Indian Health 

3 Service, an Indian Tribe, Tribal Organiza4 tion or Urban Indian Organization or 

5 through referral under contract health serv6 ices.’’. 

7 (b) TREATMENT OF CERTAIN PROPERTY FROM RE8 SOURCES FOR MEDICAID AND CHIP ELIGIBILITY.— 

9 (1) MEDICAID.—Section 1902 of the Social Secu10 rity Act (42 U.S.C. 1396a) is amended by adding at 

11 the end the following new subsection: 

12 ‘‘(dd) Notwithstanding any other requirement of this 

13 title or any other provision of Federal or State law, a State 

14 shall disregard the following property from resources for 

15 purposes of determining the eligibility of an individual who 

16 is an Indian for medical assistance under this title: 

17 ‘‘(1) Property, including real property and im18 provements, that is held in trust, subject to Federal 

19 restrictions, or otherwise under the supervision of the 

20 Secretary of the Interior, located on a reservation, in21 cluding any federally recognized Indian Tribe’s res22 ervation, pueblo, or colony, including former reserva23 tions in Oklahoma, Alaska Native regions established 

24 by the Alaska Native Claims Settlement Act, and In25 dian allotments on or near a reservation as des-
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1 ignated and approved by the Bureau of Indian Af2 fairs of the Department of the Interior. 

3 ‘‘(2) For any federally recognized Tribe not de4 scribed in paragraph (1), property located within the 

5 most recent boundaries of a prior Federal reservation. 

6 ‘‘(3) Ownership interests in rents, leases, royal7 ties, or usage rights related to natural resources (in8 cluding extraction of natural resources or harvesting 

9 of timber, other plants and plant products, animals, 

10 fish, and shellfish) resulting from the exercise of feder11 ally protected rights. 

12 ‘‘(4) Ownership interests in or usage rights to 

13 items not covered by paragraphs (1) through (3) that 

14 have unique religious, spiritual, traditional, or cul15 tural significance or rights that support subsistence or 

16 a traditional lifestyle according to applicable tribal 

17 law or custom.’’. 

18 (2) APPLICATION TO CHIP.—Section 2107(e)(1) 

19 of such Act (42 U.S.C. 1397gg(e)(1)) is amended— 

20 (A) by redesignating subparagraphs (B) 

21 through (E), as subparagraphs (C) through (F), 

22 respectively; and 

23 (B) by inserting after subparagraph (A), 

24 the following new subparagraph: 
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1 ‘‘(B) Section 1902(dd) (relating to dis2 regard of certain property for purposes of mak3 ing eligibility determinations).’’. 

4 (c) CONTINUATION OF CURRENT LAW PROTECTIONS OF

5 CERTAIN INDIAN PROPERTY FROM MEDICAID ESTATE RE6 COVERY.—Section 1917(b)(3) of the Social Security Act (42 

7 U.S.C. 1396p(b)(3)) is amended— 

8 (1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 

9 (2) by adding at the end the following new sub10 paragraph: 

11 ‘‘(B) The standards specified by the Sec12 retary under subparagraph (A) shall require that 

13 the procedures established by the State agency 

14 under subparagraph (A) exempt income, re15 sources, and property that are exempt from the 

16 application of this subsection as of April 1, 

17 2003, under manual instructions issued to carry 

18 out this subsection (as in effect on such date) be19 cause of the Federal responsibility for Indian 

20 Tribes and Alaska Native Villages. Nothing in 

21 this subparagraph shall be construed as pre22 venting the Secretary from providing additional 

23 estate recovery exemptions under this title for In24 dians.’’. 
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1 SEC. 3302. RULES APPLICABLE UNDER MEDICAID AND CHIP 

2 TO MANAGED CARE ENTITIES WITH RESPECT 

3 TO INDIAN ENROLLEES AND INDIAN HEALTH 

4 CARE PROVIDERS AND INDIAN MANAGED 

5 CARE ENTITIES. 

6 (a) IN GENERAL.—Section 1932 of the Social Security 

7 Act (42 U.S.C. 1396u–2) is amended by adding at the end 

8 the following new subsection: 

9 ‘‘(h) SPECIAL RULES WITH RESPECT TO INDIAN EN10 ROLLEES, INDIAN HEALTH CARE PROVIDERS, AND INDIAN

11 MANAGED CARE ENTITIES.— 

12 ‘‘(1) ENROLLEE OPTION TO SELECT AN INDIAN

13 HEALTH CARE PROVIDER AS PRIMARY CARE PRO14 VIDER.—In the case of a non-Indian Medicaid man15 aged care entity that— 

16 ‘‘(A) has an Indian enrolled with the entity; 

17 and 

18 ‘‘(B) has an Indian health care provider 

19 that is participating as a primary care provider 

20 within the network of the entity, 

21 insofar as the Indian is otherwise eligible to receive 

22 services from such Indian health care provider and 

23 the Indian health care provider has the capacity to 

24 provide primary care services to such Indian, the con25 tract with the entity under section 1903(m) or under 

26 section 1905(t)(3) shall require, as a condition of re-
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1 ceiving payment under such contract, that the Indian 

2 shall be allowed to choose such Indian health care 

3 provider as the Indian’s primary care provider under 

4 the entity. 

5 ‘‘(2) ASSURANCE OF PAYMENT TO INDIAN

6 HEALTH CARE PROVIDERS FOR PROVISION OF COV7 ERED SERVICES.—Each contract with a managed 

8 care entity under section 1903(m) or under section 

9 1905(t)(3) shall require any such entity, as a condi10 tion of receiving payment under such contract, to sat11 isfy the following requirements: 

12 ‘‘(A) DEMONSTRATION OF ACCESS TO IN13 DIAN HEALTH CARE PROVIDERS AND APPLICA14 TION OF ALTERNATIVE PAYMENT ARRANGE15 MENTS.—Subject to subparagraph (C), to— 

16 ‘‘(i) demonstrate that the number of 

17 Indian health care providers that are par18 ticipating providers with respect to such en19 tity are sufficient to ensure timely access to 

20 covered Medicaid managed care services for 

21 those Indian enrollees who are eligible to re22 ceive services from such providers; and 

23 ‘‘(ii) agree to pay Indian health care 

24 providers, whether such providers are par25 ticipating or nonparticipating providers 
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1 with respect to the entity, for covered Med2 icaid managed care services provided to 

3 those Indian enrollees who are eligible to re4 ceive services from such providers at a rate 

5 equal to the rate negotiated between such 

6 entity and the provider involved or, if such 

7 a rate has not been negotiated, at a rate 

8 that is not less than the level and amount 

9 of payment which the entity would make for 

10 the services if the services were furnished by 

11 a participating provider which is not an 

12 Indian health care provider. 

13 ‘‘(B) PROMPT PAYMENT.—To agree to make 

14 prompt payment (consistent with rule for 

15 prompt payment of providers under section 

16 1932(f)) to Indian health care providers that are 

17 participating providers with respect to such enti18 ty or, in the case of an entity to which subpara19 graph (A)(ii) or (C) applies, that the entity is 

20 required to pay in accordance with that sub21 paragraph. 

22 ‘‘(C) APPLICATION OF SPECIAL PAYMENT

23 REQUIREMENTS FOR FEDERALLY-QUALIFIED

24 HEALTH CENTERS AND FOR SERVICES PROVIDED

25 BY CERTAIN INDIAN HEALTH CARE PROVIDERS.— 
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1 ‘‘(i) FEDERALLY-QUALIFIED HEALTH

2 CENTERS.— 

3 ‘‘(I) MANAGED CARE ENTITY PAY4 MENT REQUIREMENT.—To agree to pay 

5 any Indian health care provider that 

6 is a federally-qualified health center 

7 under this title but not a participating 

8 provider with respect to the entity, for 

9 the provision of covered Medicaid man10 aged care services by such provider to 

11 an Indian enrollee of the entity at a 

12 rate equal to the amount of payment 

13 that the entity would pay a federally14 qualified health center that is a par15 ticipating provider with respect to the 

16 entity but is not an Indian health care 

17 provider for such services. 

18 ‘‘(II) CONTINUED APPLICATION OF

19 STATE REQUIREMENT TO MAKE SUP20 PLEMENTAL PAYMENT.—Nothing in 

21 subclause (I) or subparagraph (A) or 

22 (B) shall be construed as waiving the 

23 application of section 1902(bb)(5) re24 garding the State plan requirement to 

25 make any supplemental payment due 
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1 under such section to a federally-quali2 fied health center for services furnished 

3 by such center to an enrollee of a man4 aged care entity (regardless of whether 

5 the federally-qualified health center is 

6 or is not a participating provider with 

7 the entity). 

8 ‘‘(ii) PAYMENT RATE FOR SERVICES

9 PROVIDED BY CERTAIN INDIAN HEALTH

10 CARE PROVIDERS.—If the amount paid by a 

11 managed care entity to an Indian health 

12 care provider that is not a federally-quali13 fied health center for services provided by 

14 the provider to an Indian enrollee with the 

15 managed care entity is less than the rate 

16 that applies to the provision of such services 

17 by the provider under the State plan, the 

18 plan shall provide for payment to the In19 dian health care provider, whether the pro20 vider is a participating or nonparticipating 

21 provider with respect to the entity, of the 

22 difference between such applicable rate and 

23 the amount paid by the managed care enti24 ty to the provider for such services. 
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1 ‘‘(D) CONSTRUCTION.—Nothing in this 

2 paragraph shall be construed as waiving the ap3 plication of section 1902(a)(30)(A) (relating to 

4 application of standards to assure that payments 

5 are consistent with efficiency, economy, and 

6 quality of care). 

7 ‘‘(3) SPECIAL RULE FOR ENROLLMENT FOR IN8 DIAN MANAGED CARE ENTITIES.—Regarding the ap9 plication of a Medicaid managed care program to In10 dian Medicaid managed care entities, an Indian 

11 Medicaid managed care entity may restrict enroll12 ment under such program to Indians and to members 

13 of specific Tribes in the same manner as Indian 

14 Health Programs may restrict the delivery of services 

15 to such Indians and tribal members. 

16 ‘‘(4) DEFINITIONS.—For purposes of this sub17 section: 

18 ‘‘(A) INDIAN HEALTH CARE PROVIDER.— 

19 The term ‘Indian health care provider’ means an 

20 Indian Health Program or an Urban Indian Or21 ganization. 

22 ‘‘(B) INDIAN MEDICAID MANAGED CARE EN23 TITY.—The term ‘Indian Medicaid managed care 

24 entity’ means a managed care entity that is con25 trolled (within the meaning of the last sentence 
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1 of section 1903(m)(1)(C)) by the Indian Health 

2 Service, a Tribe, Tribal Organization, or Urban 

3 Indian Organization, or a consortium, which 

4 may be composed of 1 or more Tribes, Tribal Or5 ganizations, or Urban Indian Organizations, 

6 and which also may include the Service. 

7 ‘‘(C) NON-INDIAN MEDICAID MANAGED CARE

8 ENTITY.—The term ‘non-Indian Medicaid man9 aged care entity’ means a managed care entity 

10 that is not an Indian Medicaid managed care 

11 entity. 

12 ‘‘(D) COVERED MEDICAID MANAGED CARE

13 SERVICES.—The term ‘covered Medicaid man14 aged care services’ means, with respect to an in15 dividual enrolled with a managed care entity, 

16 items and services for which benefits are avail17 able with respect to the individual under the con18 tract between the entity and the State involved. 

19 ‘‘(E) MEDICAID MANAGED CARE PRO20 GRAM.—The term ‘Medicaid managed care pro21 gram’ means a program under sections 1903(m), 

22 1905(t), and 1932 and includes a managed care 

23 program operating under a waiver under section 

24 1915(b) or 1115 or otherwise.’’. 
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1 (b) APPLICATION TO CHIP.—Subject to section 

2 l013(d), section 2107(e)(1) of such Act (42 U.S.C. 

3 1397gg(1)) is amended by adding at the end the following 

4 new subparagraph: 

5 ‘‘(E) Subsections (a)(2)(C) and (h) of sec6 tion 1932.’’. 

7 SEC. 3303. CONSULTATION ON MEDICAID, CHIP, AND OTHER 

8 HEALTH CARE PROGRAMS FUNDED UNDER 

9 THE SOCIAL SECURITY ACT INVOLVING IN10 DIAN HEALTH PROGRAMS AND URBAN IN11 DIAN ORGANIZATIONS. 

12 (a) CONSULTATION WITH TRIBAL TECHNICAL ADVI13 SORY GROUP (TTAG).—The Secretary of Health and 

14 Human Services shall maintain within the Centers for 

15 Medicaid & Medicare Services (CMS) a Tribal Technical 

16 Advisory Group (TTAG), which was first established in ac17 cordance with requirements of the charter dated September 

18 30, 2003, and the Secretary of Health and Human Services 

19 shall include in such Group a representative of a national 

20 urban Indian health organization and a representative of 

21 the Indian Health Service. The inclusion of a representative 

22 of a national urban Indian health organization in such 

23 Group shall not affect the nonapplication of the Federal Ad24 visory Committee Act (5 U.S.C. App.) to such Group. 
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1 (b) SOLICITATION OF ADVICE UNDER MEDICAID AND

2 CHIP.— 

3 (1) MEDICAID STATE PLAN AMENDMENT.—Sub4 ject to subsection (d), section 1902(a) of the Social Se5 curity Act (42 U.S.C. 1396a(a)) is amended— 

6 (A) in paragraph (70), by striking ‘‘and’’ 

7 at the end; 

8 (B) in paragraph (71), by striking the pe9 riod at the end and inserting ‘‘; and’’; and 

10 (C) by inserting after paragraph (71), the 

11 following new paragraph: 

12 ‘‘(72) in the case of any State in which 1 or 

13 more Indian Health Programs or Urban Indian Or14 ganizations furnishes health care services, provide for 

15 a process under which the State seeks advice on a reg16 ular, ongoing basis from designees of such Indian 

17 Health Programs and Urban Indian Organizations 

18 on matters relating to the application of this title 

19 that are likely to have a direct effect on such Indian 

20 Health Programs and Urban Indian Organizations 

21 and that— 

22 ‘‘(A) shall include solicitation of advice 

23 prior to submission of any plan amendments, 

24 waiver requests, and proposals for demonstration 

25 projects likely to have a direct effect on Indians, 
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1 Indian Health Programs, or Urban Indian Or2 ganizations; and 

3 ‘‘(B) may include appointment of an advi4 sory committee and of a designee of such Indian 

5 Health Programs and Urban Indian Organiza6 tions to the medical care advisory committee ad7 vising the State on its State plan under this 

8 title.’’. 

9 (2) APPLICATION TO CHIP.—Subject to subsection 

10 (d), section 2107(e)(1) of such Act (42 U.S.C. 

11 1397gg(e)(1)), as amended by section 3302(b)(2), is 

12 amended— 

13 (A) by redesignating subparagraphs (B) 

14 through (E) as subparagraphs (C) through (F), 

15 respectively; and 

16 (B) by inserting after subparagraph (A), 

17 the following new subparagraph: 

18 ‘‘(B) Section 1902(a)(72) (relating to re19 quiring certain States to seek advice from des20 ignees of Indian Health Programs and Urban 

21 Indian Organizations).’’. 

22 (c) RULE OF CONSTRUCTION.—Nothing in the amend23 ments made by this section shall be construed as super24 seding existing advisory committees, working groups, guid25 ance, or other advisory procedures established by the Sec-
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1 retary of Health and Human Services or by any State with 

2 respect to the provision of health care to Indians. 

3 (d) CONTINGENCY RULE.—If the Children’s Health In4 surance Program Reauthorization Act of 2009 (in this sub5 section referred to as ‘‘CHIPRA’’) has been enacted as of 

6 the date of enactment of this Act, the following shall apply: 

7 (1) Subparagraph (I) of section 2107(e) of the 

8 Social Security Act (as redesignated by CHIPRA) is 

9 redesignated as subparagraph (K) and the subpara10 graph (E) added to section 2107(e) of the Social Secu11 rity Act by section 3302(b) is redesignated as sub12 paragraph (J). 

13 (2) Subparagraphs (D) through (H) of section 

14 2107(e) of the Social Security Act (as added and re15 designated by CHIPRA) are redesignated as subpara16 graphs (E) through (I), respectively and the subpara17 graph (B) of section 2107(e) of the Social Security 

18 Act added by subsection (b)(2) of this section is redes19 ignated as subparagraph (D) and amended by strik20 ing ‘‘1902(a)(72)’’ and inserting ‘‘1902(a)(73)’’. 

21 (3) Section 1902(a) of the Social Security Act 

22 (as amended by CHIPRA) is amended by striking 

23 ‘‘and’’ at the end of paragraph (71), by striking the 

24 period at the end of the paragraph (72) added by 

25 CHIPRA and inserting ‘‘; and’’ and by redesignated 
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1 the paragraph (72) added to such section by sub2 section (b)(1) of this section as paragraph (73). 

3 SEC. 3304. APPLICATION OF PROMPT PAY REQUIREMENTS 

4 TO NURSING FACILITIES. 

5 Section 1902(a)(37)(A) of the Social Security Act (42 

6 U.S.C. 1396a(a)(37)(A)) is amended by inserting ‘‘, or by 

7 nursing facilities,’’ after ‘‘health facilities’’ 

8 SEC. 3305. PERIOD OF APPLICATION; SUNSET. 

9 This subtitle and the amendments made by this sub10 title shall be in effect only during the period that begins 

11 on April 1, 2009, and ends on December 31, 2010. On and 

12 after January 1, 2011, the Social Security Act shall be ap13 plied as if this subtitle and the amendments made by this 

14 subtitle had not been enacted. 

15 TITLE IV—HEALTH 

16 INFORMATION TECHNOLOGY 

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

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

19 ‘‘Medicare and Medicaid Health Information Technology 

20 for Economic and Clinical Health Act’’ or the ‘‘M-HITECH 

21 Act’’. 

22 (b) TABLE OF CONTENTS OF TITLE.—The table of con23 tents for this title is as follows: 

TITLE IV—HEALTH INFORMATION TECHNOLOGY 

Sec. 4001. Short title; table of contents of title. 
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Subtitle A—Medicare Program 

Sec. 4201. Incentives for eligible professionals. 

Sec. 4202. Incentives for hospitals. 

Sec. 4203. Premium hold harmless and implementation funding. 

Sec. 4204. Non-application of phased-out indirect medical education (IME) adjustment factor for fiscal year 2009. 

Sec. 4205. Study on application of EHR payment incentives for providers not receiving other incentive payments. 

Sec. 4206. Study on availability of open source health information technology 

systems. 

Subtitle B—Medicaid Funding 

Sec. 4211. Medicaid provider EHR adoption and operation payments; implementation funding. 

1 Subtitle A—Medicare Program 

2 SEC. 4201. INCENTIVES FOR ELIGIBLE PROFESSIONALS. 

3 (a) INCENTIVE PAYMENTS.—Section 1848 of the Social 

4 Security Act (42 U.S.C. 1395w–4) is amended by adding 

5 at the end the following new subsection: 

6 ‘‘(o) INCENTIVES FOR ADOPTION AND MEANINGFUL

7 USE OF CERTIFIED EHR TECHNOLOGY.— 

8 ‘‘(1) INCENTIVE PAYMENTS.— 

9 ‘‘(A) IN GENERAL.— 

10 ‘‘(i) IN GENERAL.—Subject to clause 

11 (ii) and the succeeding subparagraphs of 

12 this paragraph, with respect to covered pro13 fessional services furnished by an eligible 

14 professional during a payment year (as de15 fined in subparagraph (E)), if the eligible 

16 professional is a meaningful EHR user (as 

17 determined under paragraph (2)) for the re18 porting period with respect to such year, in 
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1 addition to the amount otherwise paid 

2 under this part, there also shall be paid to 

3 the eligible professional (or to an employer 

4 or facility in the cases described in clause 

5 (A) of section 1842(b)(6)), from the Federal 

6 Supplementary Medical Insurance Trust 

7 Fund established under section 1841 an 

8 amount equal to 75 percent of the Sec9 retary’s estimate (based on claims submitted 

10 not later than 2 months after the end of the 

11 payment year) of the allowed charges under 

12 this part for all such covered professional 

13 services furnished by the eligible profes14 sional during such year. 

15 ‘‘(ii) NO INCENTIVE PAYMENTS WITH

16 RESPECT TO YEARS AFTER 2015.—No incen17 tive payments may be made under this sub18 section with respect to a year after 2015. 

19 ‘‘(B) LIMITATIONS ON AMOUNTS OF INCEN20 TIVE PAYMENTS.— 

21 ‘‘(i) IN GENERAL.—In no case shall the 

22 amount of the incentive payment provided 

23 under this paragraph for an eligible profes24 sional for a payment year exceed the appli25 cable amount specified under this subpara-
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1 graph with respect to such eligible profes2 sional and such year. 

3 ‘‘(ii) AMOUNT.—Subject to clauses (iii) 

4 through (v), the applicable amount specified 

5 in this subparagraph for an eligible profes6 sional is as follows: 

7 ‘‘(I) For the first payment year 

8 for such professional, $15,000 (or, if 

9 the first payment year for such eligible 

10 professional is 2011 or 2012, $18,000). 

11 ‘‘(II) For the second payment 

12 year for such professional, $12,000. 

13 ‘‘(III) For the third payment year 

14 for such professional, $8,000. 

15 ‘‘(IV) For the fourth payment 

16 year for such professional, $4,000. 

17 ‘‘(V) For the fifth payment year 

18 for such professional, $2,000. 

19 ‘‘(VI) For any succeeding pay20 ment year for such professional, $0. 

21 ‘‘(iii) PHASE DOWN FOR ELIGIBLE

22 PROFESSIONALS FIRST ADOPTING EHR IN

23 2014.—If the first payment year for an eli24 gible professional is 2014, then the amount 

25 specified in this subparagraph for a pay-
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1 ment year for such professional is the same 

2 as the amount specified in clause (ii) for 

3 such payment year for an eligible profes4 sional whose first payment year is 2013. 

5 ‘‘(iv) INCREASE FOR CERTAIN RURAL

6 ELIGIBLE PROFESSIONALS.—In the case of 

7 an eligible professional who predominantly 

8 furnishes services under this part in a rural 

9 area that is designated by the Secretary 

10 (under section 332(a)(1)(A) of the Public 

11 Health Service Act) as a health professional 

12 shortage area, the amount that would other13 wise apply for a payment year for such 

14 professional under subclauses (I) through 

15 (V) of clause (ii) shall be increased by 25 

16 percent. In implementing the preceding sen17 tence, the Secretary may, as determined ap18 propriate, apply provisions of subsections 

19 (m) and (u) of section 1833 in a similar 

20 manner as such provisions apply under 

21 such subsection. 

22 ‘‘(v) NO INCENTIVE PAYMENT IF FIRST

23 ADOPTING AFTER 2014.—If the first pay24 ment year for an eligible professional is 

25 after 2014 then the applicable amount spec-
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1 ified in this subparagraph for such profes2 sional for such year and any subsequent 

3 year shall be $0. 

4 ‘‘(C) NON-APPLICATION TO HOSPITAL-BASED

5 ELIGIBLE PROFESSIONALS.— 

6 ‘‘(i) IN GENERAL.—No incentive pay7 ment may be made under this paragraph in 

8 the case of a hospital-based eligible profes9 sional. 

10 ‘‘(ii) HOSPITAL-BASED ELIGIBLE PRO11 FESSIONAL.—For purposes of clause (i), the 

12 term ‘hospital-based eligible professional’ 

13 means, with respect to covered professional 

14 services furnished by an eligible professional 

15 during the reporting period for a payment 

16 year, an eligible professional, such as a pa17 thologist, anesthesiologist, or emergency 

18 physician, who furnishes substantially all of 

19 such services in a hospital setting (whether 

20 inpatient or outpatient) and through the 

21 use of the facilities and equipment, includ22 ing qualified electronic health records, of the 

23 hospital. 

24 ‘‘(D) PAYMENT.— 
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1 ‘‘(i) FORM OF PAYMENT.—The pay2 ment under this paragraph may be in the 

3 form of a single consolidated payment or in 

4 the form of such periodic installments as the 

5 Secretary may specify. 

6 ‘‘(ii) COORDINATION OF APPLICATION

7 OF LIMITATION FOR PROFESSIONALS IN DIF8 FERENT PRACTICES.—In the case of an eli9 gible professional furnishing covered profes10 sional services in more than one practice 

11 (as specified by the Secretary), the Sec12 retary shall establish rules to coordinate the 

13 incentive payments, including the applica14 tion of the limitation on amounts of such 

15 incentive payments under this paragraph, 

16 among such practices. 

17 ‘‘(iii) COORDINATION WITH MED18 ICAID.—The Secretary shall seek, to the 

19 maximum extent practicable, to avoid du20 plicative requirements from Federal and 

21 State Governments to demonstrate meaning22 ful use of certified EHR technology under 

23 this title and title XIX. In doing so, the 

24 Secretary may deem satisfaction of State 

25 requirements for such meaningful use for a 
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1 payment year under title XIX to be suffi2 cient to qualify as meaningful use under 

3 this subsection and subsection (a)(7) and 

4 vice versa. The Secretary may also adjust 

5 the reporting periods under such title and 

6 such subsections in order to carry out this 

7 clause. 

8 ‘‘(E) PAYMENT YEAR DEFINED.— 

9 ‘‘(i) IN GENERAL.—For purposes of 

10 this subsection, the term ‘payment year’ 

11 means a year beginning with 2011. 

12 ‘‘(ii) FIRST, SECOND, ETC. PAYMENT

13 YEAR.—The term ‘first payment year’ 

14 means, with respect to covered professional 

15 services furnished by an eligible profes16 sional, the first year for which an incentive 

17 payment is made for such services under 

18 this subsection. The terms ‘second payment 

19 year’, ‘third payment year’, ‘fourth pay20 ment year’, and ‘fifth payment year’ mean, 

21 with respect to covered professional services 

22 furnished by such eligible professional, each 

23 successive year immediately following the 

24 first payment year for such professional. 

25 ‘‘(2) MEANINGFUL EHR USER.— 
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1 ‘‘(A) IN GENERAL.—For purposes of para2 graph (1), an eligible professional shall be treat3 ed as a meaningful EHR user for a reporting 

4 period for a payment year (or, for purposes of 

5 subsection (a)(7), for a reporting period under 

6 such subsection for a year) if each of the fol7 lowing requirements is met: 

8 ‘‘(i) MEANINGFUL USE OF CERTIFIED

9 EHR TECHNOLOGY.—The eligible profes10 sional demonstrates to the satisfaction of the 

11 Secretary, in accordance with subparagraph 

12 (C)(i), that during such period the profes13 sional is using certified EHR technology in 

14 a meaningful manner, which shall include 

15 the use of electronic prescribing as deter16 mined to be appropriate by the Secretary. 

17 ‘‘(ii) INFORMATION EXCHANGE.—The 

18 eligible professional demonstrates to the sat19 isfaction of the Secretary, in accordance 

20 with subparagraph (C)(i), that during such 

21 period such certified EHR technology is 

22 connected in a manner that provides, in ac23 cordance with law and standards applicable 

24 to the exchange of information, for the elec25 tronic exchange of health information to im-
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1 prove the quality of health care, such as 

2 promoting care coordination. 

3 ‘‘(iii) REPORTING ON MEASURES USING

4 EHR.—Subject to subparagraph (B)(ii) and 

5 using such certified EHR technology, the el6 igible professional submits information for 

7 such period, in a form and manner speci8 fied by the Secretary, on such clinical qual9 ity measures and such other measures as se10 lected by the Secretary under subparagraph 

11 (B)(i). 

12 The Secretary may provide for the use of alter13 native means for meeting the requirements of 

14 clauses (i), (ii), and (iii) in the case of an eligi15 ble professional furnishing covered professional 

16 services in a group practice (as defined by the 

17 Secretary). The Secretary shall seek to improve 

18 the use of electronic health records and health 

19 care quality over time by requiring more strin20 gent measures of meaningful use selected under 

21 this paragraph. 

22 ‘‘(B) REPORTING ON MEASURES.— 

23 ‘‘(i) SELECTION.—The Secretary shall 

24 select measures for purposes of subpara-
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1 graph (A)(iii) but only consistent with the 

2 following: 

3 ‘‘(I) The Secretary shall provide 

4 preference to clinical quality measures 

5 that have been endorsed by the entity 

6 with a contract with the Secretary 

7 under section 1890(a). 

8 ‘‘(II) Prior to any measure being 

9 selected under this subparagraph, the 

10 Secretary shall publish in the Federal 

11 Register such measure and provide for 

12 a period of public comment on such 

13 measure. 

14 ‘‘(ii) LIMITATION.—The Secretary may 

15 not require the electronic reporting of infor16 mation on clinical quality measures under 

17 subparagraph (A)(iii) unless the Secretary 

18 has the capacity to accept the information 

19 electronically, which may be on a pilot 

20 basis. 

21 ‘‘(iii) COORDINATION OF REPORTING

22 OF INFORMATION.—In selecting such meas23 ures, and in establishing the form and man24 ner for reporting measures under subpara25 graph (A)(iii), the Secretary shall seek to 
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1 avoid redundant or duplicative reporting 

2 otherwise required, including reporting 

3 under subsection (k)(2)(C). 

4 ‘‘(C) DEMONSTRATION OF MEANINGFUL USE

5 OF CERTIFIED EHR TECHNOLOGY AND INFORMA6 TION EXCHANGE.— 

7 ‘‘(i) IN GENERAL.—A professional may 

8 satisfy the demonstration requirement of 

9 clauses (i) and (ii) of subparagraph (A) 

10 through means specified by the Secretary, 

11 which may include— 

12 ‘‘(I) an attestation; 

13 ‘‘(II) the submission of claims 

14 with appropriate coding (such as a 

15 code indicating that a patient encoun16 ter was documented using certified 

17 EHR technology); 

18 ‘‘(III) a survey response; 

19 ‘‘(IV) reporting under subpara20 graph (A)(iii); and 

21 ‘‘(V) other means specified by the 

22 Secretary. 

23 ‘‘(ii) USE OF PART D DATA.—Notwith24 standing sections 1860D–15(d)(2)(B) and 

25 1860D–15(f)(2), the Secretary may use data 
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1 regarding drug claims submitted for pur2 poses of section 1860D–15 that are nec3 essary for purposes of subparagraph (A). 

4 ‘‘(3) APPLICATION.— 

5 ‘‘(A) PHYSICIAN REPORTING SYSTEM

6 RULES.—Paragraphs (5), (6), and (8) of sub7 section (k) shall apply for purposes of this sub8 section in the same manner as they apply for 

9 purposes of such subsection. 

10 ‘‘(B) COORDINATION WITH OTHER PAY11 MENTS.—The provisions of this subsection shall 

12 not be taken into account in applying the provi13 sions of subsection (m) of this section and of sec14 tion 1833(m) and any payment under such pro15 visions shall not be taken into account in com16 puting allowable charges under this subsection. 

17 ‘‘(C) LIMITATIONS ON REVIEW.—There shall 

18 be no administrative or judicial review under 

19 section 1869, section 1878, or otherwise of the de20 termination of any incentive payment under this 

21 subsection and the payment adjustment under 

22 subsection (a)(7), including the determination of 

23 a meaningful EHR user under paragraph (2), a 

24 limitation under paragraph (1)(B), and the ex25 ception under subsection (a)(7)(B). 
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1 ‘‘(D) POSTING ON WEBSITE.—The Secretary 

2 shall post on the Internet website of the Centers 

3 for Medicare & Medicaid Services, in an easily 

4 understandable format, a list of the names, busi5 ness addresses, and business phone numbers of 

6 the eligible professionals who are meaningful 

7 EHR users and, as determined appropriate by 

8 the Secretary, of group practices receiving incen9 tive payments under paragraph (1). 

10 ‘‘(4) CERTIFIED EHR TECHNOLOGY DEFINED.— 

11 For purposes of this section, the term ‘certified EHR 

12 technology’ means a qualified electronic health record 

13 (as defined in 3000(13) of the Public Health Service 

14 Act) that is certified pursuant to section 3001(c)(5) of 

15 such Act as meeting standards adopted under section 

16 3004 of such Act that are applicable to the type of 

17 record involved (as determined by the Secretary, such 

18 as an ambulatory electronic health record for office19 based physicians or an inpatient hospital electronic 

20 health record for hospitals). 

21 ‘‘(5) DEFINITIONS.—For purposes of this sub22 section: 

23 ‘‘(A) COVERED PROFESSIONAL SERVICES.— 

24 The term ‘covered professional services’ has the 

25 meaning given such term in subsection (k)(3). 
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1 ‘‘(B) ELIGIBLE PROFESSIONAL.—The term 

2 ‘eligible professional’ means a physician, as de3 fined in section 1861(r). 

4 ‘‘(C) REPORTING PERIOD.—The term ‘re5 porting period’ means any period (or periods), 

6 with respect to a payment year, as specified by 

7 the Secretary.’’. 

8 (b) INCENTIVE PAYMENT ADJUSTMENT.—Section 

9 1848(a) of the Social Security Act (42 U.S.C. 1395w–4(a)) 

10 is amended by adding at the end the following new para11 graph: 

12 ‘‘(7) INCENTIVES FOR MEANINGFUL USE OF CER13 TIFIED EHR TECHNOLOGY.— 

14 ‘‘(A) ADJUSTMENT.— 

15 ‘‘(i) IN GENERAL.—Subject to subpara16 graphs (B) and (D), with respect to covered 

17 professional services furnished by an eligible 

18 professional during 2015 or any subsequent 

19 payment year, if the eligible professional is 

20 not a meaningful EHR user (as determined 

21 under subsection (o)(2)) for a reporting pe22 riod for the year, the fee schedule amount 

23 for such services furnished by such profes24 sional during the year (including the fee 

25 schedule amount for purposes of deter-
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1 mining a payment based on such amount) 

2 shall be equal to the applicable percent of 

3 the fee schedule amount that would other4 wise apply to such services under this sub5 section (determined after application of 

6 paragraph (3) but without regard to this 

7 paragraph). 

8 ‘‘(ii) APPLICABLE PERCENT.—Subject 

9 to clause (iii), for purposes of clause (i), the 

10 term ‘applicable percent’ means— 

11 ‘‘(I) for 2015, 99 percent (or, in 

12 the case of an eligible professional who 

13 was subject to the application of the 

14 payment adjustment under section 

15 1848(a)(5) for 2014, 98 percent); 

16 ‘‘(II) for 2016, 98 percent; and 

17 ‘‘(III) for 2017 and each subse18 quent year, 97 percent. 

19 ‘‘(iii) AUTHORITY TO DECREASE AP20 PLICABLE PERCENTAGE FOR 2018 AND SUB21 SEQUENT YEARS.—For 2018 and each sub22 sequent year, if the Secretary finds that the 

23 proportion of eligible professionals who are 

24 meaningful EHR users (as determined 

25 under subsection (o)(2)) is less than 75 per-
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1 cent, the applicable percent shall be de2 creased by 1 percentage point from the ap3 plicable percent in the preceding year, but 

4 in no case shall the applicable percent be 

5 less than 95 percent. 

6 ‘‘(B) SIGNIFICANT HARDSHIP EXCEPTION.— 

7 The Secretary may, on a case-by-case basis, ex8 empt an eligible professional from the applica9 tion of the payment adjustment under subpara10 graph (A) if the Secretary determines, subject to 

11 annual renewal, that compliance with the re12 quirement for being a meaningful EHR user 

13 would result in a significant hardship, such as 

14 in the case of an eligible professional who prac15 tices in a rural area without sufficient Internet 

16 access. In no case may an eligible professional be 

17 granted an exemption under this subparagraph 

18 for more than 5 years. 

19 ‘‘(C) APPLICATION OF PHYSICIAN REPORT20 ING SYSTEM RULES.—Paragraphs (5), (6), and 

21 (8) of subsection (k) shall apply for purposes of 

22 this paragraph in the same manner as they 

23 apply for purposes of such subsection. 

24 ‘‘(D) NON-APPLICATION TO HOSPITAL25 BASED ELIGIBLE PROFESSIONALS.—No payment 
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1 adjustment may be made under subparagraph 

2 (A) in the case of hospital-based eligible profes3 sionals (as defined in subsection (o)(1)(C)(ii)). 

4 ‘‘(E) DEFINITIONS.—For purposes of this 

5 paragraph: 

6 ‘‘(i) COVERED PROFESSIONAL SERV7 ICES.—The term ‘covered professional serv8 ices’ has the meaning given such term in 

9 subsection (k)(3). 

10 ‘‘(ii) ELIGIBLE PROFESSIONAL.—The 

11 term ‘eligible professional’ means a physi12 cian, as defined in section 1861(r). 

13 ‘‘(iii) REPORTING PERIOD.—The term 

14 ‘reporting period’ means, with respect to a 

15 year, a period specified by the Secretary.’’. 

16 (c) APPLICATION TO CERTAIN MA-AFFILIATED ELIGI17 BLE PROFESSIONALS.—Section 1853 of the Social Security 

18 Act (42 U.S.C. 1395w–23) is amended by adding at the 

19 end the following new subsection: 

20 ‘‘(l) APPLICATION OF ELIGIBLE PROFESSIONAL INCEN21 TIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOPTION

22 AND MEANINGFUL USE OF CERTIFIED EHR TECH23 NOLOGY.— 

24 ‘‘(1) IN GENERAL.—Subject to paragraphs (3) 

25 and (4), in the case of a qualifying MA organization, 
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1 the provisions of sections 1848(o) and 1848(a)(7) 

2 shall apply with respect to eligible professionals de3 scribed in paragraph (2) of the organization who the 

4 organization attests under paragraph (6) to be mean5 ingful EHR users in a similar manner as they apply 

6 to eligible professionals under such sections. Incentive 

7 payments under paragraph (3) shall be made to and 

8 payment adjustments under paragraph (4) shall 

9 apply to such qualifying organizations. 

10 ‘‘(2) ELIGIBLE PROFESSIONAL DESCRIBED.— 

11 With respect to a qualifying MA organization, an eli12 gible professional described in this paragraph is an 

13 eligible professional (as defined for purposes of section 

14 1848(o)) who— 

15 ‘‘(A)(i) is employed by the organization; or 

16 ‘‘(ii)(I) is employed by, or is a partner of, 

17 an entity that through contract with the organi18 zation furnishes at least 80 percent of the enti19 ty’s patient care services to enrollees of such or20 ganization; and 

21 ‘‘(II) furnishes at least 75 percent of the 

22 professional services of the eligible professional to 

23 enrollees of the organization; and 

24 ‘‘(B) furnishes, on average, at least 20 hours 

25 per week of patient care services. 
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1 ‘‘(3) ELIGIBLE PROFESSIONAL INCENTIVE PAY2 MENTS.— 

3 ‘‘(A) IN GENERAL.—In applying section 

4 1848(o) under paragraph (1), instead of the ad5 ditional payment amount under section 

6 1848(o)(1)(A) and subject to subparagraph (B), 

7 the Secretary may substitute an amount deter8 mined by the Secretary to the extent feasible and 

9 practical to be similar to the estimated amount 

10 in the aggregate that would be payable if pay11 ment for services furnished by such professionals 

12 was payable under part B instead of this part. 

13 ‘‘(B) AVOIDING DUPLICATION OF PAY14 MENTS.— 

15 ‘‘(i) IN GENERAL.—If an eligible pro16 fessional described in paragraph (2) is eligi17 ble for the maximum incentive payment 

18 under section 1848(o)(1)(A) for the same 

19 payment period, the payment incentive 

20 shall be made only under such section and 

21 not under this subsection. 

22 ‘‘(ii) METHODS.—In the case of an eli23 gible professional described in paragraph 

24 (2) who is eligible for an incentive payment 

25 under section 1848(o)(1)(A) but is not de-
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1 scribed in clause (i) for the same payment 

2 period, the Secretary shall develop a proc3 ess— 

4 ‘‘(I) to ensure that duplicate pay5 ments are not made with respect to an 

6 eligible professional both under this 

7 subsection and under section 

8 1848(o)(1)(A); and 

9 ‘‘(II) to collect data from Medi10 care Advantage organizations to ensure 

11 against such duplicate payments. 

12 ‘‘(C) FIXED SCHEDULE FOR APPLICATION

13 OF LIMITATION ON INCENTIVE PAYMENTS FOR

14 ALL ELIGIBLE PROFESSIONALS.—In applying 

15 section 1848(o)(1)(B)(ii) under subparagraph 

16 (A), in accordance with rules specified by the 

17 Secretary, a qualifying MA organization shall 

18 specify a year (not earlier than 2011) that shall 

19 be treated as the first payment year for all eligi20 ble professionals with respect to such organiza21 tion. 

22 ‘‘(D) CAP FOR ECONOMIES OF SCALE.—In 

23 no case may an incentive payment be made 

24 under this subsection, including under subpara25 graph (A), to a qualifying MA organization with 
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HR 1 EAS 

1 respect to more than 5,000 eligible professionals 

2 of the organization. 

3 ‘‘(4) PAYMENT ADJUSTMENT.— 

4 ‘‘(A) IN GENERAL.—In applying section 

5 1848(a)(7) under paragraph (1), instead of the 

6 payment adjustment being an applicable percent 

7 of the fee schedule amount for a year under such 

8 section, subject to subparagraph (D), the pay9 ment adjustment under paragraph (1) shall be 

10 equal to the percent specified in subparagraph 

11 (B) for such year of the payment amount other12 wise provided under this section for such year. 

13 ‘‘(B) SPECIFIED PERCENT.—The percent 

14 specified under this subparagraph for a year is 

15 100 percent minus a number of percentage 

16 points equal to the product of— 

17 ‘‘(i) a percentage equal to 100 percent 

18 reduced by the applicable percent (under 

19 section 1848(a)(7)(A)(ii)) for the year; and 

20 ‘‘(ii) a percentage equal to the Sec21 retary’s estimate of the proportion for the 

22 year, of the expenditures under parts A and 

23 B that are not attributable to this part, that 

24 are attributable to expenditures for physi25 cians’ services. 
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1 ‘‘(C) APPLICATION OF PAYMENT ADJUST2 MENT.—In the case that a qualifying MA orga3 nization attests that not all eligible professionals 

4 of the organization are meaningful EHR users 

5 with respect to a year, the Secretary shall apply 

6 the payment adjustment under this paragraph 

7 based on the proportion of all eligible profes8 sionals of the organization that are not meaning9 ful EHR users for such year. If the number of 

10 eligible professionals of the organization that are 

11 not meaningful EHR users for such year exceeds 

12 5,000, such number shall be reduced to 5,000 for 

13 purposes of determining the proportion under the 

14 preceding sentence. 

15 ‘‘(5) QUALIFYING MA ORGANIZATION DEFINED.— 

16 In this subsection and subsection (m), the term ‘quali17 fying MA organization’ means a Medicare Advantage 

18 organization that is organized as a health mainte19 nance organization (as defined in section 2791(b)(3) 

20 of the Public Health Service Act). 

21 ‘‘(6) MEANINGFUL EHR USER ATTESTATION.— 

22 For purposes of this subsection and subsection (m), a 

23 qualifying MA organization shall submit an attesta24 tion, in a form and manner specified by the Secretary 

25 which may include the submission of such attestation 
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HR 1 EAS 

1 as part of submission of the initial bid under section 

2 1854(a)(1)(A)(iv), identifying— 

3 ‘‘(A) whether each eligible professional de4 scribed in paragraph (2), with respect to such 

5 organization is a meaningful EHR user (as de6 fined in section 1848(o)(2)) for a year specified 

7 by the Secretary; and 

8 ‘‘(B) whether each eligible hospital described 

9 in subsection (m)(1), with respect to such organi10 zation, is a meaningful EHR user (as defined in 

11 section 1886(n)(3)) for an applicable period 

12 specified by the Secretary. 

13 ‘‘(7) POSTING ON WEBSITE.—The Secretary shall 

14 post on the Internet website of the Centers for Medi15 care & Medicaid Services, in an easily understand16 able format, a list of the names, business addresses, 

17 and business phone numbers of— 

18 ‘‘(A) each qualifying MA organization re19 ceiving an incentive payment under this sub20 section for eligible professionals of the organiza21 tion; and 

22 ‘‘(B) the eligible professionals of such orga23 nization for which such incentive payment is 

24 based.’’. 
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1 (d) CONFORMING AMENDMENTS.—Section 1853 of the 

2 Social Security Act (42 U.S.C. 1395w–23) is amended— 

3 (1) in subsection (a)(1)(A), by striking ‘‘and (i)’’ 

4 and inserting ‘‘(i), and (l)’’; 

5 (2) in subsection (c)— 

6 (A) in paragraph (1)(D)(i), by striking 

7 ‘‘section 1886(h)’’ and inserting ‘‘sections 

8 1848(o) and 1886(h)’’; and 

9 (B) in paragraph (6)(A), by inserting after 

10 ‘‘under part B,’’ the following: ‘‘excluding ex11 penditures attributable to subsections (a)(7) and 

12 (o) of section 1848,’’; and 

13 (3) in subsection (f), by inserting ‘‘and for pay14 ments under subsection (l)’’ after ‘‘with the organiza15 tion’’. 

16 (e) CONFORMING AMENDMENTS TO E-PRESCRIBING.— 

17 (1) Section 1848(a)(5)(A) of the Social Security 

18 Act (42 U.S.C. 1395w–4(a)(5)(A)) is amended— 

19 (A) in clause (i), by striking ‘‘or any subse20 quent year’’ and inserting ‘‘, 2013, or 2014’’; 

21 and 

22 (B) in clause (ii), by striking ‘‘and each 

23 subsequent year’’. 

24 (2) Section 1848(m)(2) of such Act (42 U.S.C. 

25 1395w–4(m)(2)) is amended— 
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HR 1 EAS 

1 (A) in subparagraph (A), by striking ‘‘For 

2 2009’’ and inserting ‘‘Subject to subparagraph 

3 (D), for 2009’’; and 

4 (B) by adding at the end the following new 

5 subparagraph: 

6 ‘‘(D) LIMITATION WITH RESPECT TO EHR

7 INCENTIVE PAYMENTS.—The provisions of this 

8 paragraph shall not apply to an eligible profes9 sional (or, in the case of a group practice under 

10 paragraph (3)(C), to the group practice) if, for 

11 the reporting period the eligible professional (or 

12 group practice) receives an incentive payment 

13 under subsection (o)(1)(A) with respect to a cer14 tified EHR technology (as defined in subsection 

15 (o)(4)) that has the capability of electronic pre16 scribing.’’. 

17 (f) PROVIDING ASSISTANCE TO ELIGIBLE PROFES18 SIONALS AND CERTAIN HOSPITALS.— 

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

20 Human Services shall provide assistance to eligible 

21 professionals (as defined in section 1848(o)(5), as 

22 added by subsection (a)), Medicaid providers (as de23 fined in section 1903(t)(2) of such Act, as added by 

24 section 4211(a)), and eligible hospitals (as defined in 

25 section 1886(n)(6)(A) of such Act, as added by section 
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HR 1 EAS 

1 4202(a)) located in rural or other medically under2 served areas to successfully choose, implement, and 

3 use certified EHR technology (as defined in section 

4 1848(o)(4) of the Social Security Act, as added by 

5 section 4201(a)). 

6 (2) USE OF ENTITIES WITH EXPERTISE.—To the 

7 extent practicable, the Secretary shall provide such 

8 assistance through entities that have expertise in the 

9 choice, implementation, and use of such certified 

10 EHR technology. 

11 SEC. 4202. INCENTIVES FOR HOSPITALS. 

12 (a) INCENTIVE PAYMENT.—Section 1886 of the Social 

13 Security Act (42 U.S.C. 1395ww) is amended by adding 

14 at the end the following new subsection: 

15 ‘‘(n) INCENTIVES FOR ADOPTION AND MEANINGFUL

16 USE OF CERTIFIED EHR TECHNOLOGY.— 

17 ‘‘(1) IN GENERAL.—Subject to the succeeding 

18 provisions of this subsection, with respect to inpatient 

19 hospital services furnished by an eligible hospital dur20 ing a payment year (as defined in paragraph 

21 (2)(G)), if the eligible hospital is a meaningful EHR 

22 user (as determined under paragraph (3)) for the re23 porting period with respect to such year, in addition 

24 to the amount otherwise paid under this section, there 

25 also shall be paid to the eligible hospital, from the 
675 

HR 1 EAS 

1 Federal Hospital Insurance Trust Fund established 

2 under section 1817, an amount equal to the applica3 ble amount specified in paragraph (2)(A) for the hos4 pital for such payment year. 

5 ‘‘(2) PAYMENT AMOUNT.— 

6 ‘‘(A) IN GENERAL.—Subject to the suc7 ceeding subparagraphs of this paragraph, the ap8 plicable amount specified in this subparagraph 

9 for an eligible hospital for a payment year is 

10 equal to the product of the following: 

11 ‘‘(i) INITIAL AMOUNT.—The sum of— 

12 ‘‘(I) the base amount specified in 

13 subparagraph (B); plus 

14 ‘‘(II) the discharge related amount 

15 specified in subparagraph (C) for a 12- 

16 month period selected by the Secretary 

17 with respect to such payment year. 

18 ‘‘(ii) MEDICARE SHARE.—The Medi19 care share as specified in subparagraph (D) 

20 for the hospital for a period selected by the 

21 Secretary with respect to such payment 

22 year. 

23 ‘‘(iii) TRANSITION FACTOR.—The tran24 sition factor specified in subparagraph (E) 

25 for the hospital for the payment year. 
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HR 1 EAS 

1 ‘‘(B) BASE AMOUNT.—The base amount 

2 specified in this subparagraph is $2,000,000. 

3 ‘‘(C) DISCHARGE RELATED AMOUNT.—The 

4 discharge related amount specified in this sub5 paragraph for a 12-month period selected by the 

6 Secretary shall be determined as the sum of the 

7 amount, based upon total discharges (regardless 

8 of any source of payment) for the period, for 

9 each discharge up to the 23,000th discharge as 

10 follows: 

11 ‘‘(i) For the 1,150th through the 

12 9,200nd discharge, $200. 

13 ‘‘(ii) For the 9,201st through the 

14 13,800th discharge, 50 percent of the 

15 amount specified in clause (i). 

16 ‘‘(iii) For the 13,801st through the 

17 23,000th discharge, 30 percent of the 

18 amount specified in clause (i). 

19 ‘‘(D) MEDICARE SHARE.—The Medicare 

20 share specified under this subparagraph for a 

21 hospital for a period selected by the Secretary for 

22 a payment year is equal to the fraction— 

23 ‘‘(i) the numerator of which is the sum 

24 (for such period and with respect to the hos25 pital) of— 
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HR 1 EAS 

1 ‘‘(I) the number of inpatient-bed2 days (as established by the Secretary) 

3 which are attributable to individuals 

4 with respect to whom payment may be 

5 made under part A; and 

6 ‘‘(II) the number of inpatient-bed7 days (as so established) which are at8 tributable to individuals who are en9 rolled with a Medicare Advantage or10 ganization under part C; and 

11 ‘‘(ii) the denominator of which is the 

12 product of— 

13 ‘‘(I) the total number of inpa14 tient-bed-days with respect to the hos15 pital during such period; and 

16 ‘‘(II) the total amount of the hos17 pital’s charges during such period, not 

18 including any charges that are attrib19 utable to charity care (as such term is 

20 used for purposes of hospital cost re21 porting under this title), divided by the 

22 total amount of the hospital’s charges 

23 during such period. 

24 Insofar as the Secretary determines that data are 

25 not available on charity care necessary to cal-
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HR 1 EAS 

1 culate the portion of the formula specified in 

2 clause (ii)(II), the Secretary shall use data on 

3 uncompensated care and may adjust such data 

4 so as to be an appropriate proxy for charity care 

5 including a downward adjustment to eliminate 

6 bad debt data from uncompensated care data. In 

7 the absence of the data necessary, with respect to 

8 a hospital, for the Secretary to compute the 

9 amount described in clause (ii)(II), the amount 

10 under such clause shall be deemed to be 1. In the 

11 absence of data, with respect to a hospital, nec12 essary to compute the amount described in clause 

13 (i)(II), the amount under such clause shall be 

14 deemed to be 0. 

15 ‘‘(E) TRANSITION FACTOR SPECIFIED.— 

16 ‘‘(i) IN GENERAL.—Subject to clause 

17 (ii), the transition factor specified in this 

18 subparagraph for an eligible hospital for a 

19 payment year is as follows: 

20 ‘‘(I) For the first payment year 

21 for such hospital, 1. 

22 ‘‘(II) For the second payment 

year for such hospital, 3 23 ⁄4. 

24 ‘‘(III) For the third payment year 

for such hospital, 1 25 ⁄2. 
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HR 1 EAS 

1 ‘‘(IV) For the fourth payment 

year for such hospital, 1 2 ⁄4. 

3 ‘‘(V) For any succeeding payment 

4 year for such hospital, 0. 

5 ‘‘(ii) PHASE DOWN FOR ELIGIBLE HOS6 PITALS FIRST ADOPTING EHR AFTER 2013.— 

7 If the first payment year for an eligible hos8 pital is after 2013, then the transition fac9 tor specified in this subparagraph for a 

10 payment year for such hospital is the same 

11 as the amount specified in clause (i) for 

12 such payment year for an eligible hospital 

13 for which the first payment year is 2013. If 

14 the first payment year for an eligible hos15 pital is after 2015 then the transition factor 

16 specified in this subparagraph for such hos17 pital and for such year and any subsequent 

18 year shall be 0. 

19 ‘‘(F) FORM OF PAYMENT.—The payment 

20 under this subsection for a payment year may be 

21 in the form of a single consolidated payment or 

22 in the form of such periodic installments as the 

23 Secretary may specify. 

24 ‘‘(G) PAYMENT YEAR DEFINED.— 
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1 ‘‘(i) IN GENERAL.—For purposes of 

2 this subsection, the term ‘payment year’ 

3 means a fiscal year beginning with fiscal 

4 year 2011. 

5 ‘‘(ii) FIRST, SECOND, ETC. PAYMENT

6 YEAR.—The term ‘first payment year’ 

7 means, with respect to inpatient hospital 

8 services furnished by an eligible hospital, 

9 the first fiscal year for which an incentive 

10 payment is made for such services under 

11 this subsection. The terms ‘second payment 

12 year’, ‘third payment year’, and ‘fourth 

13 payment year’ mean, with respect to an eli14 gible hospital, each successive year imme15 diately following the first payment year for 

16 that hospital. 

17 ‘‘ ‘‘(H) LIMITATION FOR CRITICAL ACCESS

18 HOSPITALS.—In no case shall the total amount 

19 of payments made under this subsection to a 

20 critical access hospital for all payment years ex21 ceed $1,500,000. 

22 ‘‘(3) MEANINGFUL EHR USER.— 

23 ‘‘(A) IN GENERAL.—For purposes of para24 graph (1), an eligible hospital shall be treated as 

25 a meaningful EHR user for a reporting period 
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HR 1 EAS 

1 for a payment year (or, for purposes of sub2 section (b)(3)(B)(ix), for a reporting period 

3 under such subsection for a fiscal year) if each 

4 of the following requirements are met: 

5 ‘‘(i) MEANINGFUL USE OF CERTIFIED

6 EHR TECHNOLOGY.—The eligible hospital 

7 demonstrates to the satisfaction of the Sec8 retary, in accordance with subparagraph 

9 (C)(i), that during such period the hospital 

10 is using certified EHR technology in a 

11 meaningful manner. 

12 ‘‘(ii) INFORMATION EXCHANGE.—The 

13 eligible hospital demonstrates to the satis14 faction of the Secretary, in accordance with 

15 subparagraph (C)(i), that during such pe16 riod such certified EHR technology is con17 nected in a manner that provides, in ac18 cordance with law and standards applicable 

19 to the exchange of information, for the elec20 tronic exchange of health information to im21 prove the quality of health care, such as 

22 promoting care coordination. 

23 ‘‘(iii) REPORTING ON MEASURES USING

24 EHR.—Subject to subparagraph (B)(ii) and 

25 using such certified EHR technology, the el-
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HR 1 EAS 

1 igible hospital submits information for such 

2 period, in a form and manner specified by 

3 the Secretary, on such clinical quality 

4 measures and such other measures as se5 lected by the Secretary under subparagraph 

6 (B)(i). 

7 The Secretary shall seek to improve the use of 

8 electronic health records and health care quality 

9 over time by requiring more stringent measures 

10 of meaningful use selected under this paragraph. 

11 ‘‘(B) REPORTING ON MEASURES.— 

12 ‘‘(i) SELECTION.—The Secretary shall 

13 select measures for purposes of subpara14 graph (A)(iii) but only consistent with the 

15 following: 

16 ‘‘(I) The Secretary shall provide 

17 preference to clinical quality measures 

18 that have been selected for purposes of 

19 applying subsection (b)(3)(B)(viii) or 

20 that have been endorsed by the entity 

21 with a contract with the Secretary 

22 under section 1890(a). 

23 ‘‘(II) Prior to any measure (other 

24 than a clinical quality measure that 

25 has been selected for purposes of apply-
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HR 1 EAS 

1 ing subsection (b)(3)(B)(viii)) being se2 lected under this subparagraph, the 

3 Secretary shall publish in the Federal 

4 Register such measure and provide for 

5 a period of public comment on such 

6 measure. 

7 ‘‘(ii) LIMITATIONS.—The Secretary 

8 may not require the electronic reporting of 

9 information on clinical quality measures 

10 under subparagraph (A)(iii) unless the Sec11 retary has the capacity to accept the infor12 mation electronically, which may be on a 

13 pilot basis. 

14 ‘‘(iii) COORDINATION OF REPORTING

15 OF INFORMATION.—In selecting such meas16 ures, and in establishing the form and man17 ner for reporting measures under subpara18 graph (A)(iii), the Secretary shall seek to 

19 avoid redundant or duplicative reporting 

20 with reporting otherwise required, including 

21 reporting under subsection (b)(3)(B)(viii). 

22 ‘‘(C) DEMONSTRATION OF MEANINGFUL USE

23 OF CERTIFIED EHR TECHNOLOGY AND INFORMA24 TION EXCHANGE.— 
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HR 1 EAS 

1 ‘‘(i) IN GENERAL.—A hospital may 

2 satisfy the demonstration requirement of 

3 clauses (i) and (ii) of subparagraph (A) 

4 through means specified by the Secretary, 

5 which may include— 

6 ‘‘(I) an attestation; 

7 ‘‘(II) the submission of claims 

8 with appropriate coding (such as a 

9 code indicating that inpatient care 

10 was documented using certified EHR 

11 technology); 

12 ‘‘(III) a survey response; 

13 ‘‘(IV) reporting under subpara14 graph (A)(iii); and 

15 ‘‘(V) other means specified by the 

16 Secretary. 

17 ‘‘(ii) USE OF PART D DATA.—Notwith18 standing sections 1860D–15(d)(2)(B) and 

19 1860D–15(f)(2), the Secretary may use data 

20 regarding drug claims submitted for pur21 poses of section 1860D–15 that are nec22 essary for purposes of subparagraph (A). 

23 ‘‘(4) APPLICATION.— 

24 ‘‘(A) LIMITATIONS ON REVIEW.—There shall 

25 be no administrative or judicial review under 
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1 section 1869, section 1878, or otherwise of the de2 termination of any incentive payment under this 

3 subsection and the payment adjustment under 

4 subsection (b)(3)(B)(ix), including the deter5 mination of a meaningful EHR user under 

6 paragraph (3), determination of measures appli7 cable to services furnished by eligible hospitals 

8 under this subsection, and the exception under 

9 subsection (b)(3)(B)(ix)(II). 

10 ‘‘(B) POSTING ON WEBSITE.—The Secretary 

11 shall post on the Internet website of the Centers 

12 for Medicare & Medicaid Services, in an easily 

13 understandable format, a list of the names of the 

14 eligible hospitals that are meaningful EHR users 

15 under this subsection or subsection (b)(3)(B)(ix) 

16 and other relevant data as determined appro17 priate by the Secretary. The Secretary shall en18 sure that a hospital has the opportunity to re19 view the other relevant data that are to be made 

20 public with respect to the hospital prior to such 

21 data being made public. 

22 ‘‘(5) CERTIFIED EHR TECHNOLOGY DEFINED.— 

23 The term ‘certified EHR technology’ has the meaning 

24 given such term in section 1848(o)(4). 
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HR 1 EAS 

1 ‘‘(6) DEFINITIONS.—For purposes of this sub2 section: 

3 ‘‘(A) ELIGIBLE HOSPITAL.—The term ‘eligi4 ble hospital’ means— 

5 ‘‘(i) a subsection (d) hospital; and 

6 ‘‘(ii) a critical access hospital (as de7 fined in section 1861(mm)(1)). 

8 ‘‘(B) REPORTING PERIOD.—The term ‘re9 porting period’ means any period (or periods), 

10 with respect to a payment year, as specified by 

11 the Secretary.’’. 

12 (b) INCENTIVE MARKET BASKET ADJUSTMENT.— 

13 (1) IN GENERAL.—Section 1886(b)(3)(B) of the 

14 Social Security Act (42 U.S.C. 1395ww(b)(3)(B)) is 

15 amended— 

16 (A) in clause (viii)(I), by inserting ‘‘(or, be17 ginning with fiscal year 2016, by one-quarter)’’ 

18 after ‘‘2.0 percentage points’’; and 

19 (B) by adding at the end the following new 

20 clause: 

21 ‘‘(ix)(I) For purposes of clause (i) for fiscal year 2015 

22 and each subsequent fiscal year, in the case of an eligible 

23 hospital (as defined in subsection (n)(6)(A)) that is not a 

24 meaningful EHR user (as defined in subsection (n)(3)) for 

25 the reporting period for such fiscal year, three-quarters of 
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HR 1 EAS 

1 the applicable percentage increase otherwise applicable 

2 under clause (i) for such fiscal year shall be reduced by 

331⁄3 percent for fiscal year 2015, 662 3 ⁄3 percent for fiscal 

4 year 2016, and 100 percent for fiscal year 2017 and each 

5 subsequent fiscal year. Such reduction shall apply only with 

6 respect to the fiscal year involved and the Secretary shall 

7 not take into account such reduction in computing the ap8 plicable percentage increase under clause (i) for a subse9 quent fiscal year. 

10 ‘‘(II) The Secretary may, on a case-by-case basis, ex11 empt a subsection (d) hospital from the application of sub12 clause (I) with respect to a fiscal year if the Secretary deter13 mines, subject to annual renewal, that requiring such hos14 pital to be a meaningful EHR user during such fiscal year 

15 would result in a significant hardship, such as in the case 

16 of a hospital in a rural area without sufficient Internet ac17 cess. In no case may a hospital be granted an exemption 

18 under this subclause for more than 5 years. 

19 ‘‘(III) For fiscal year 2015 and each subsequent fiscal 

20 year, a State in which hospitals are paid for services under 

21 section 1814(b)(3) shall adjust the payments to each sub22 section (d) hospital in the State that is not a meaningful 

23 EHR user (as defined in subsection (n)(3)) in a manner 

24 that is designed to result in an aggregate reduction in pay25 ments to hospitals in the State that is equivalent to the ag-
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HR 1 EAS 

1 gregate reduction that would have occurred if payments had 

2 been reduced to each subsection (d) hospital in the State 

3 in a manner comparable to the reduction under the pre4 vious provisions of this clause. The State shall report to 

5 the Secretary the methodology it will use to make the pay6 ment adjustment under the previous sentence. 

7 ‘‘(IV) For purposes of this clause, the term ‘reporting 

8 period’ means, with respect to a fiscal year, any period (or 

9 periods), with respect to the fiscal year, as specified by the 

10 Secretary.’’. 

11 (2) CRITICAL ACCESS HOSPITALS.—Section 

12 1814(l) of the Social Security Act (42 U.S.C. 

13 1395f(l)) is amended— 

14 (A) in subparagraph (1), by striking ‘‘para15 graph (2)’’ and inserting ‘‘paragraphs (2) and 

16 (3)’’; and 

17 (B) by adding at the end the following new 

18 paragraph: 

19 ‘‘(3)(A) Subject to subparagraph (B), for fiscal year 

20 2015 and each subsequent fiscal year, in the case of a crit21 ical access hospital that is not a meaningful EHR user (as 

22 defined in section 1886(n)(3)) for the reporting period for 

23 such fiscal year, paragraph (1) shall be applied by sub24 stituting the applicable percent under subparagraph (C) for 

25 the percent described in such paragraph (1). 
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HR 1 EAS 

1 ‘‘(B) The Secretary may, on a case-by-case basis, ex2 empt a critical access hospital from the application of sub3 paragraph (A) with respect to a fiscal year if the Secretary 

4 determines, subject to annual renewal, that requiring such 

5 hospital to be a meaningful EHR user during such fiscal 

6 year would result in a significant hardship, such as in the 

7 case of a hospital in a rural area without sufficient Internet 

8 access. In no case may a hospital be granted an exemption 

9 under this subparagraph for more than 5 years. 

10 ‘‘(C) The percent described in this subparagraph is— 

11 ‘‘(i) for fiscal year 2015, 100.66 percent; 

12 ‘‘(ii) for fiscal year 2016, 100.33 percent; and 

13 ‘‘(iii) for fiscal year 2017 and each subsequent 

14 fiscal year, 100 percent.’’. 

15 (c) APPLICATION TO CERTAIN MA-AFFILIATED ELIGI16 BLE HOSPITALS.—Section 1853 of the Social Security Act 

17 (42 U.S.C. 1395w–23), as amended by section 4201(c), is 

18 further amended by adding at the end the following new 

19 subsection: 

20 ‘‘(m) APPLICATION OF ELIGIBLE HOSPITAL INCEN21 TIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOPTION

22 AND MEANINGFUL USE OF CERTIFIED EHR TECH23 NOLOGY.— 

24 ‘‘(1) APPLICATION.—Subject to paragraphs (3) 

25 and (4), in the case of a qualifying MA organization, 
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HR 1 EAS 

1 the provisions of sections 1814(l)(3), 1886(n), and 

2 1886(b)(3)(B)(ix) shall apply with respect to eligible 

3 hospitals described in paragraph (2) of the organiza4 tion which the organization attests under subsection 

5 (l)(6) to be meaningful EHR users in a similar man6 ner as they apply to eligible hospitals under such sec7 tions. Incentive payments under paragraph (3) shall 

8 be made to and payment adjustments under para9 graph (4) shall apply to such qualifying organiza10 tions. 

11 ‘‘(2) ELIGIBLE HOSPITAL DESCRIBED.—With re12 spect to a qualifying MA organization, an eligible 

13 hospital described in this paragraph is an eligible 

14 hospital (as defined in section 1886(n)(6)(A)) that is 

15 under common corporate governance with such orga16 nization and serves individuals enrolled under an MA 

17 plan offered by such organization. 

18 ‘‘(3) ELIGIBLE HOSPITAL INCENTIVE PAY19 MENTS.— 

20 ‘‘(A) IN GENERAL.—In applying section 

21 1886(n)(2) under paragraph (1), instead of the 

22 additional payment amount under section 

23 1886(n)(2), there shall be substituted an amount 

24 determined by the Secretary to be similar to the 

25 estimated amount in the aggregate that would be 
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HR 1 EAS 

1 payable if payment for services furnished by 

2 such hospitals was payable under part A instead 

3 of this part. In implementing the previous sen4 tence, the Secretary— 

5 ‘‘(i) shall, insofar as data to determine 

6 the discharge related amount under section 

7 1886(n)(2)(C) for an eligible hospital are 

8 not available to the Secretary, use such al9 ternative data and methodology to estimate 

10 such discharge related amount as the Sec11 retary determines appropriate; and 

12 ‘‘(ii) shall, insofar as data to deter13 mine the medicare share described in sec14 tion 1886(n)(2)(D) for an eligible hospital 

15 are not available to the Secretary, use such 

16 alternative data and methodology to esti17 mate such share, which data and method18 ology may include use of the inpatient bed 

19 days (or discharges) with respect to an eli20 gible hospital during the appropriate period 

21 which are attributable to both individuals 

22 for whom payment may be made under 

23 part A or individuals enrolled in an MA 

24 plan under a Medicare Advantage organiza25 tion under this part as a proportion of the 
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HR 1 EAS 

1 total number of patient-bed-days (or dis2 charges) with respect to such hospital dur3 ing such period. 

4 ‘‘(B) AVOIDING DUPLICATION OF PAY5 MENTS.— 

6 ‘‘(i) IN GENERAL.—In the case of a 

7 hospital that for a payment year is an eli8 gible hospital described in paragraph (2) 

9 and for which at least one-third of their dis10 charges (or bed-days) of Medicare patients 

11 for the year are covered under part A, pay12 ment for the payment year shall be made 

13 only under section 1886(n) and not under 

14 this subsection. 

15 ‘‘(ii) METHODS.—In the case of a hos16 pital that is an eligible hospital described 

17 in paragraph (2) and also is eligible for an 

18 incentive payment under section 1886(n) 

19 but is not described in clause (i) for the 

20 same payment period, the Secretary shall 

21 develop a process— 

22 ‘‘(I) to ensure that duplicate pay23 ments are not made with respect to an 

24 eligible hospital both under this sub25 section and under section 1886(n); and 
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1 ‘‘(II) to collect data from Medi2 care Advantage organizations to ensure 

3 against such duplicate payments. 

4 ‘‘(4) PAYMENT ADJUSTMENT.— 

5 ‘‘(A) Subject to paragraph (3), in the case 

6 of a qualifying MA organization (as defined in 

7 section 1853(l)(5)), if, according to the attesta8 tion of the organization submitted under sub9 section (l)(6) for an applicable period, one or 

10 more eligible hospitals (as defined in section 

11 1886(n)(6)(A)) that are under common corporate 

12 governance with such organization and that 

13 serve individuals enrolled under a plan offered 

14 by such organization are not meaningful EHR 

15 users (as defined in section 1886(n)(3)) with re16 spect to a period, the payment amount payable 

17 under this section for such organization for such 

18 period shall be the percent specified in subpara19 graph (B) for such period of the payment 

20 amount otherwise provided under this section for 

21 such period. 

22 ‘‘(B) SPECIFIED PERCENT.—The percent 

23 specified under this subparagraph for a year is 

24 100 percent minus a number of percentage 

25 points equal to the product of— 
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1 ‘‘(i) the number of the percentage point 

2 reduction effected under section 

3 1886(b)(3)(B)(ix)(I) for the period; and 

4 ‘‘(ii) the Medicare hospital expenditure 

5 proportion specified in subparagraph (C) 

6 for the year. 

7 ‘‘(C) MEDICARE HOSPITAL EXPENDITURE

8 PROPORTION.—The Medicare hospital expendi9 ture proportion under this subparagraph for a 

10 year is the Secretary’s estimate of the propor11 tion, of the expenditures under parts A and B 

12 that are not attributable to this part, that are 

13 attributable to expenditures for inpatient hos14 pital services. 

15 ‘‘(D) APPLICATION OF PAYMENT ADJUST16 MENT.—In the case that a qualifying MA orga17 nization attests that not all eligible hospitals are 

18 meaningful EHR users with respect to an appli19 cable period, the Secretary shall apply the pay20 ment adjustment under this paragraph based on 

21 a methodology specified by the Secretary, taking 

22 into account the proportion of such eligible hos23 pitals, or discharges from such hospitals, that are 

24 not meaningful EHR users for such period. 
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1 ‘‘(5) POSTING ON WEBSITE.—The Secretary shall 

2 post on the Internet website of the Centers for Medi3 care & Medicaid Services, in an easily understand4 able format— 

5 ‘‘(A) a list of the names, business addresses, 

6 and business phone numbers of each qualifying 

7 MA organization receiving an incentive payment 

8 under this subsection for eligible hospitals de9 scribed in paragraph (2); and 

10 ‘‘(B) a list of the names of the eligible hos11 pitals for which such incentive payment is 

12 based.’’. 

13 (d) CONFORMING AMENDMENTS.— 

14 (1) Section 1814(b) of the Social Security Act 

15 (42 U.S.C. 1395f(b)) is amended— 

16 (A) in paragraph (3), in the matter pre17 ceding subparagraph (A), by inserting ‘‘, subject 

18 to section 1886(d)(3)(B)(ix)(III),’’ after ‘‘then’’; 

19 and 

20 (B) by adding at the end the following: 

21 ‘‘For purposes of applying paragraph (3), there 

22 shall be taken into account incentive payments, 

23 and payment adjustments under subsection 

24 (b)(3)(B)(ix) or (n) of section 1886.’’. 
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1 (2) Section 1851(i)(1) of the Social Security Act 

2 (42 U.S.C. 1395w–21(i)(1)) is amended by striking 

3 ‘‘and 1886(h)(3)(D)’’ and inserting ‘‘1886(h)(3)(D), 

4 and 1853(m)’’. 

5 (3) Section 1853 of the Social Security Act (42 

6 U.S.C. 1395w–23), as amended by section 4311(d)(1), 

7 is amended— 

8 (A) in subsection (c)— 

9 (i) in paragraph (1)(D)(i), by striking 

10 ‘‘1848(o)’’ and inserting ‘‘, 1848(o), and 

11 1886(n)’’; and 

12 (ii) in paragraph (6)(A), by inserting 

13 ‘‘and subsections (b)(3)(B)(ix) and (n) of 

14 section 1886’’ after ‘‘section 1848’’; and 

15 (B) in subsection (f), by inserting ‘‘and sub16 section (m)’’ after ‘‘under subsection (l)’’. 

17 SEC. 4203. PREMIUM HOLD HARMLESS AND IMPLEMENTA18 TION FUNDING. 

19 (a) PREMIUM HOLD HARMLESS.— 

20 (1) IN GENERAL.—Section 1839(a)(1) of the So21 cial Security Act (42 U.S.C. 1395r(a)(1)) is amended 

22 by adding at the end the following: ‘‘In applying this 

23 paragraph there shall not be taken into account addi24 tional payments under section 1848(o) and section 
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1 1853(l)(3) and the Government contribution under 

2 section 1844(a)(3).’’. 

3 (2) PAYMENT.—Section 1844(a) of such Act (42 

4 U.S.C. 1395w(a)) is amended— 

5 (A) in paragraph (2), by striking the period 

6 at the end and inserting ‘‘; plus’’; and 

7 (B) by adding at the end the following new 

8 paragraph: 

9 ‘‘(3) a Government contribution equal to the 

10 amount of payment incentives payable under sections 

11 1848(o) and 1853(l)(3).’’. 

12 (b) IMPLEMENTATION FUNDING.—In addition to funds 

13 otherwise available, out of any funds in the Treasury not 

14 otherwise appropriated, there are appropriated to the Sec15 retary of Health and Human Services for the Center for 

16 Medicare & Medicaid Services Program Management Ac17 count, $100,000,000 for each of fiscal years 2009 through 

18 2015 and $45,000,000 for each succeeding fiscal year 

19 through fiscal year 2018, which shall be available for pur20 poses of carrying out the provisions of (and amendments 

21 made by) this part. Amounts appropriated under this sub22 section for a fiscal year shall be available until expended. 
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1 SEC. 4204. NON-APPLICATION OF PHASED-OUT INDIRECT 

2 MEDICAL EDUCATION (IME) ADJUSTMENT 

3 FACTOR FOR FISCAL YEAR 2009. 

4 (a) IN GENERAL.—Section 412.322 of title 42, Code 

5 of Federal Regulations, shall be applied without regard to 

6 paragraph (c) of such section, and the Secretary of Health 

7 and Human Services shall recompute payments for dis8 charges occurring on or after October 1, 2008, as if such 

9 paragraph had never been in effect. 

10 (b) NO EFFECT ON SUBSEQUENT YEARS.—Nothing in 

11 subsection (a) shall be construed as having any effect on 

12 the application of paragraph (d) of section 412.322 of title 

13 42, Code of Federal Regulations. 

14 SEC. 4205. STUDY ON APPLICATION OF EHR PAYMENT IN15 CENTIVES FOR PROVIDERS NOT RECEIVING 

16 OTHER INCENTIVE PAYMENTS. 

17 (a) STUDY.— 

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

19 Human Services shall conduct a study to determine 

20 the extent to which and manner in which payment 

21 incentives (such as under title XVIII or XIX of the 

22 Social Security Act) and other funding for purposes 

23 of implementing and using certified EHR technology 

24 (as defined in section 1848(o)(4) of the Social Secu25 rity Act, as added by section 4311(a)) should be made 

26 available to health care providers who are receiving 
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1 minimal or no payment incentives or other funding 

2 under this Act, under title XVIII or XIX of such Act, 

3 or otherwise, for such purposes. 

4 (2) DETAILS OF STUDY.—Such study shall in5 clude an examination of— 

6 (A) the adoption rates of certified EHR 

7 technology (as so defined) by such health care 

8 providers; 

9 (B) the clinical utility of such technology by 

10 such health care providers; 

11 (C) whether the services furnished by such 

12 health care providers are appropriate for or 

13 would benefit from the use of such technology; 

14 (D) the extent to which such health care 

15 providers work in settings that might otherwise 

16 receive an incentive payment or other funding 

17 under this Act, title XVIII or XIX of the Social 

18 Security Act, or otherwise; 

19 (E) the potential costs and the potential 

20 benefits of making payment incentives and other 

21 funding available to such health care providers; 

22 and 

23 (F) any other issues the Secretary deems to 

24 be appropriate. 
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1 (b) REPORT.—Not later than June 30, 2010, the Sec2 retary shall submit to Congress a report on the findings 

3 and conclusions of the study conducted under subsection (a). 

4 SEC. 4206. STUDY ON AVAILABILITY OF OPEN SOURCE 

5 HEALTH INFORMATION TECHNOLOGY SYS6 TEMS. 

7 (a) IN GENERAL.— 

8 (1) STUDY.—The Secretary of Health and 

9 Human Services shall, in consultation with the 

10 Under Secretary for Health of the Veterans Health 

11 Administration, the Director of the Indian Health 

12 Service, the Secretary of Defense, the Director of the 

13 Agency for Healthcare Research and Quality, the Ad14 ministrator of the Health Resources and Services Ad15 ministration, and the Chairman of the Federal Com16 munications Commission, conduct a study on— 

17 (A) the current availability of open source 

18 health information technology systems to Federal 

19 safety net providers (including small, rural pro20 viders); 

21 (B) the total cost of ownership of such sys22 tems in comparison to the cost of proprietary 

23 commercial products available; 

24 (C) the ability of such systems to respond to 

25 the needs of, and be applied to, various popu-
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1 lations (including children and disabled individ2 uals); and 

3 (D) the capacity of such systems to facili4 tate interoperability. 

5 (2) CONSIDERATIONS.—In conducting the study 

6 under paragraph (1), the Secretary of Health and 

7 Human Services shall take into account the cir8 cumstances of smaller health care providers, health 

9 care providers located in rural or other medically un10 derserved areas, and safety net providers that deliver 

11 a significant level of health care to uninsured individ12 uals, Medicaid beneficiaries, SCHIP beneficiaries, 

13 and other vulnerable individuals. 

14 (b) REPORT.—Not later than October 1, 2010, the Sec15 retary of Health and Human Services shall submit to Con16 gress a report on the findings and the conclusions of the 

17 study conducted under subsection (a), together with rec18 ommendations for such legislation and administrative ac19 tion as the Secretary determines appropriate. 

20 Subtitle B—Medicaid Funding 

21 SEC. 4211. MEDICAID PROVIDER EHR ADOPTION AND OPER22 ATION PAYMENTS; IMPLEMENTATION FUND23 ING. 

24 (a) IN GENERAL.—Section 1903 of the Social Security 

25 Act (42 U.S.C. 1396b) is amended— 
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1 (1) in subsection (a)(3)— 

2 (A) by striking ‘‘and’’ at the end of sub3 paragraph (D); 

4 (B) by striking ‘‘plus’’ at the end of sub5 paragraph (E) and inserting ‘‘and’’; and 

6 (C) by adding at the end the following new 

7 subparagraph: 

8 ‘‘(F)(i) 100 percent of so much of the sums 

9 expended during such quarter as are attributable 

10 to payments for certified EHR technology (and 

11 support services including maintenance and 

12 training that is for, or is necessary for the adop13 tion and operation of, such technology) by Med14 icaid providers described in subsection (t)(1); 

15 and 

16 ‘‘(ii) 90 percent of so much of the sums ex17 pended during such quarter as are attributable 

18 to payments for reasonable administrative ex19 penses related to the administration of payments 

20 described in clause (i) if the State meets the con21 dition described in subsection (t)(9); plus’’; and 

22 (2) by inserting after subsection (s) the following 

23 new subsection: 

24 ‘‘(t)(1)(A) For purposes of subsection (a)(3)(F), the 

25 payments for certified EHR technology (and support serv-
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1 ices including maintenance that is for, or is necessary for 

2 the operation of, such technology) by Medicaid providers de3 scribed in this paragraph are payments made by the State 

4 in accordance with this subsection of the applicable percent 

5 of the net allowable costs of Medicaid providers (as defined 

6 in paragraph (2)) for such technology (and support serv7 ices). 

8 ‘‘(B) For purposes of subparagraph (A), the term ‘ap9 plicable percent’ means— 

10 ‘‘(i) in the case of a Medicaid provider described 

11 in paragraph (2)(A), 85 percent; 

12 ‘‘(ii) in the case of a Medicaid provider described 

13 in clause (i) or (ii) of paragraph (2)(B), 100 percent; 

14 and 

15 ‘‘(iii) in the case of a Medicaid provider de16 scribed in clause (iii) of paragraph (2)(B), a percent 

17 specified by the Secretary, but not less than 85 per18 cent. 

19 ‘‘(2) In this subsection and subsection (a)(3)(F), the 

20 term ‘Medicaid provider’ means— 

21 ‘‘(A) an eligible professional (as defined in para22 graph (3)(B)) who is not hospital-based and has at 

23 least 30 percent of the professional’s patient volume 

24 (as estimated in accordance with standards estab25 lished by the Secretary) attributable to individuals 
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1 who are receiving medical assistance under this title; 

2 and 

3 ‘‘(B)(i) a children’s hospital, (ii) an acute-care 

4 hospital that is not described in clause (i) and that 

5 has at least 10 percent of the hospital’s patient vol6 ume (as estimated in accordance with standards es7 tablished by the Secretary) attributable to individuals 

8 who are receiving medical assistance under this title, 

9 or (iii) a Federally-qualified health center or rural 

10 health clinic that has at least 30 percent of the cen11 ter’s or clinic’s patient volume (as estimated in ac12 cordance with standards established by the Secretary) 

13 attributable to individuals who are receiving medical 

14 assistance under this title. 

15 An eligible professional shall not qualify as a Medicaid pro16 vider under this subsection unless the professional has 

17 waived, in a manner specified by the Secretary, any right 

18 to payment under section 1848(o) with respect to the adop19 tion or support of certified EHR technology by the eligible 

20 professional. In applying clauses (ii) and (iii) of subpara21 graph (B), the standards established by the Secretary for 

22 patient volume shall include individuals enrolled in a Med23 icaid managed care plan (under section 1903(m) or section 

24 1932). 

25 ‘‘(3) In this subsection and subsection (a)(3)(F): 
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1 ‘‘(A) The term ‘certified EHR technology’ means 

2 a qualified electronic health record (as defined in 

3 3000(13) of the Public Health Service Act) that is cer4 tified pursuant to section 3001(c)(5) of such Act as 

5 meeting standards adopted under section 3004 of such 

6 Act that are applicable to the type of record involved 

7 (as determined by the Secretary, such as an ambula8 tory electronic health record for office-based physi9 cians or an inpatient hospital electronic health record 

10 for hospitals). 

11 ‘‘(B) The term ‘eligible professional’ means a 

12 physician as defined in paragraphs (1) and (2) of 

13 section 1861(r), and includes a nurse mid-wife and a 

14 nurse practitioner. 

15 ‘‘(C) The term ‘hospital-based’ means, with re16 spect to an eligible professional, a professional (such 

17 as a pathologist, anesthesiologist, or emergency physi18 cian) who furnishes substantially all of the individ19 ual’s professional services in a hospital setting 

20 (whether inpatient or outpatient) and through the use 

21 of the facilities and equipment, including qualified 

22 electronic health records, of the hospital. 

23 ‘‘(4)(A) The term ‘allowable costs’ means, with respect 

24 to certified EHR technology of a Medicaid provider, costs 

25 of such technology (and support services including mainte-
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1 nance and training that is for, or is necessary for the adop2 tion and operation of, such technology) as determined by 

3 the Secretary to be reasonable. 

4 ‘‘(B) The term ‘net allowable costs’ means allowable 

5 costs reduced by any payment that is made to the Medicaid 

6 provider involved from any other source that is directly at7 tributable to payment for certified EHR technology or serv8 ices described in subparagraph (A). 

9 ‘‘(C) In no case shall— 

10 ‘‘(i) the aggregate allowable costs under this sub11 section (covering one or more years) with respect to 

12 a Medicaid provider described in paragraph (2)(A) 

13 for purchase and initial implementation of certified 

14 EHR technology (and services described in subpara15 graph (A)) exceed $25,000 or include costs over a pe16 riod of longer than 5 years; 

17 ‘‘(ii) for costs not described in clause (i) relating 

18 to the operation, maintenance, or use of certified 

19 EHR technology, the annual allowable costs under 

20 this subsection with respect to such a Medicaid pro21 vider for costs not described in clause (i) for any year 

22 exceed $10,000; 

23 ‘‘(iii) payment described in paragraph (1) for 

24 costs described in clause (ii) be made with respect to 
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1 such a Medicaid provider over a period of more than 

2 5 years; 

3 ‘‘(iv) the aggregate allowable costs under this 

4 subsection with respect to such a Medicaid provider 

5 for all costs exceed $75,000; or 

6 ‘‘(v) the allowable costs, whether for purchase 

7 and initial implementation, maintenance, or other8 wise, for a Medicaid provider described in paragraph 

9 (2)(B)(iii) exceed such aggregate or annual limitation 

10 as the Secretary shall establish, based on an amount 

11 determined by the Secretary as being adequate to 

12 adopt and maintain certified EHR technology, con13 sistent with paragraph (6). 

14 ‘‘(5) Payments described in paragraph (1) are not in 

15 accordance with this subsection unless the following require16 ments are met: 

17 ‘‘(A) The State provides assurances satisfactory 

18 to the Secretary that amounts received under sub19 section (a)(3)(F) with respect to costs of a Medicaid 

20 provider are paid directly to such provider without 

21 any deduction or rebate. 

22 ‘‘(B) Such Medicaid provider is responsible for 

23 payment of the costs described in such paragraph that 

24 are not provided under this title. 
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1 ‘‘(C) With respect to payments to such Medicaid 

2 provider for costs other than costs related to the ini3 tial adoption of certified EHR technology, the Med4 icaid provider demonstrates meaningful use of cer5 tified EHR technology through a means that is ap6 proved by the State and acceptable to the Secretary, 

7 and that may be based upon the methodologies ap8 plied under section 1848(o) or 1886(n). In estab9 lishing such means, which may include the reporting 

10 of clinical quality measures to the State, the State 

11 shall ensure that populations with unique needs, such 

12 as children, are appropriately addressed. 

13 ‘‘(D) To the extent specified by the Secretary, the 

14 certified EHR technology is compatible with State or 

15 Federal administrative management systems. 

16 ‘‘(6)(A) In no case shall the payments described in 

17 paragraph (1), with respect to a hospital, exceed in the ag18 gregate the product of— 

19 ‘‘(i) the overall hospital EHR amount for the 

20 hospital computed under subparagraph (B); and 

21 ‘‘(ii) the Medicaid share for such hospital com22 puted under subparagraph (C). 

23 ‘‘(B) For purposes of this paragraph, the overall hos24 pital EHR amount, with respect to a hospital, is the sum 

25 of the applicable amounts specified in section 1886(n)(2)(A) 
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1 for such hospital for the first 4 payment years (as estimated 

2 by the Secretary) determined as if the Medicare share speci3 fied in clause (ii) of such section were 1. The Secretary shall 

4 publish in the Federal Register the overall hospital EHR 

5 amount for each hospital eligible for payments under this 

6 subsection. In computing amounts under clause (ii) for 

7 payment years after the first payment year, the Secretary 

8 shall assume that in subsequent payment years discharges 

9 increase at the average annual rate of growth of the most 

10 recent three years for which discharge data are available. 

11 ‘‘(C) The Medicaid share computed under this sub12 paragraph, for a hospital for a period specified by the Sec13 retary, shall be calculated in the same manner as the Medi14 care share under section 1886(n)(2)(D) for such a hospital 

15 and period, except that there shall be substituted for the nu16 merator under clause (i) of such section the amount that 

17 is equal to the number of inpatient-bed-days (as established 

18 by the Secretary) which are attributable to individuals who 

19 are receiving medical assistance under this title and who 

20 are not described in section 1886(n)(2)(D)(i). In computing 

21 inpatient-bed-days under the previous sentence, the Sec22 retary shall take into account inpatient-bed-days attrib23 utable to inpatient-bed-days that are paid for individuals 

24 enrolled in a Medicaid managed care plan (under section 

25 1903(m) or section 1932). 
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1 ‘‘(7) With respect to health care providers other than 

2 hospitals, the Secretary shall establish and implement a de3 tailed process to ensure coordination of the different pro4 grams for payment of such health care providers for adop5 tion or use of health information technology (including cer6 tified EHR technology), as well as payments for such health 

7 care providers provided under this title or title XVIII, to 

8 assure no duplication of funding. The Secretary shall pro9 mulgate regulations to carry out the preceding sentence. 

10 ‘‘(8) In carrying out paragraph (5)(C), the State and 

11 Secretary shall seek, to the maximum extent practicable, to 

12 avoid duplicative requirements from Federal and State 

13 Governments to demonstrate meaningful use of certified 

14 EHR technology under this title and title XVIII. In doing 

15 so, the Secretary may deem satisfaction of requirements for 

16 such meaningful use for a payment year under title XVIII 

17 to be sufficient to qualify as meaningful use under this sub18 section. The Secretary may also specify the reporting peri19 ods under this subsection in order to carry out this para20 graph. 

21 ‘‘(9) In order to be provided Federal financial partici22 pation under subsection (a)(3)(F)(ii), a State must dem23 onstrate to the satisfaction of the Secretary, that the State— 

24 ‘‘(A) is using the funds provided for the purposes 

25 of administering payments under this subsection, in-
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1 cluding tracking of meaningful use by Medicaid pro2 viders; 

3 ‘‘(B) is conducting adequate oversight of the pro4 gram under this subsection, including routine track5 ing of meaningful use attestations and reporting 

6 mechanisms; and 

7 ‘‘(C) is pursuing initiatives to encourage the 

8 adoption of certified EHR technology to promote 

9 health care quality and the exchange of health care 

10 information under this title, subject to applicable 

11 laws and regulations governing such exchange. 

12 ‘‘(10) The Secretary shall periodically submit reports 

13 to the Committee on Energy and Commerce of the House 

14 of Representatives and the Committee on Finance of the 

15 Senate on status, progress, and oversight of payments under 

16 paragraph (1).’’. 

17 (b) IMPLEMENTATION FUNDING.—In addition to funds 

18 otherwise available, out of any funds in the Treasury not 

19 otherwise appropriated, there are appropriated to the Sec20 retary of Health and Human Services for the Center for 

21 Medicare & Medicaid Services Program Management Ac22 count, $40,000,000 for each of fiscal years 2009 through 

23 2015 and $20,000,000 for each succeeding fiscal year 

24 through fiscal year 2018, which shall be available for pur25 poses of carrying out the provisions of (and the amendments 
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1 made by) this part. Amounts appropriated under this sub2 section for a fiscal year shall be available until expended. 

3 (c) HHS REPORT ON IMPLEMENTATION OF DETAILED

4 PROCESS TO ASSURE NO DUPLICATION OF FUNDING.—Not 

5 later than July 1, 2012, the Secretary of Health and 

6 Human Services shall submit to Congress a report on the 

7 establishment and implementation of the detailed process 

8 under section 1903(t)(7) of the Social Security Act, as 

9 added by subsection (a), together with recommendations for 

10 such legislation and administrative action as the Secretary 

11 determines appropriate. 

12 TITLE V—STATE FISCAL RELIEF 

13 SEC. 5000. PURPOSES; TABLE OF CONTENTS. 

14 (a) PURPOSES.—The purposes of this title are as fol15 lows: 

16 (1) To provide fiscal relief to States in a period 

17 of economic downturn. 

18 (2) To protect and maintain State Medicaid 

19 programs during a period of economic downturn, in20 cluding by helping to avert cuts to provider payment 

21 rates and benefits or services, and to prevent constric22 tions of income eligibility requirements for such pro23 grams, but not to promote increases in such require24 ments. 
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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 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. Extension and update of special rule for increase of Medicaid DSH 

allotments for low DSH States. 

Sec. 5003. Payment of Medicare liability to States as a result of the Special Disability Workload Project. 

Sec. 5004. Funding for the Department of Health and Human Services Office of 

the Inspector General. 

Sec. 5005. GAO study and report regarding State needs during periods of national economic downturn. 

3 SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP. 

4 (a) PERMITTING MAINTENANCE OF FMAP.—Subject to 

5 subsections (e), (f), and (g), if the FMAP determined with6 out regard to this section for a State for— 

7 (1) fiscal year 2009 is less than the FMAP as so 

8 determined for fiscal year 2008, the FMAP for the 

9 State for fiscal year 2008 shall be substituted for the 

10 State’s FMAP for fiscal year 2009, before the applica11 tion of this section; 

12 (2) fiscal year 2010 is less than the FMAP as so 

13 determined for fiscal year 2008 or fiscal year 2009 

14 (after the application of paragraph (1)), the greater 

15 of such FMAP for the State for fiscal year 2008 or 

16 fiscal year 2009 shall be substituted for the State’s 

17 FMAP for fiscal year 2010, before the application of 

18 this section; and 

19 (3) fiscal year 2011 is less than the FMAP as so 

20 determined for fiscal year 2008, fiscal year 2009 
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1 (after the application of paragraph (1)), or fiscal 

2 year 2010 (after the application of paragraph (2)), 

3 the greatest of such FMAP for the State for fiscal year 

4 2008, fiscal year 2009, or fiscal year 2010 shall be 

5 substituted for the State’s FMAP for fiscal year 2011, 

6 before the application of this section, but only for the 

7 first calendar quarter in fiscal year 2011. 

8 (b) GENERAL 7.6 PERCENTAGE POINT INCREASE.— 

9 Subject to subsections (e), (f), and (g), for each State for 

10 calendar quarters during the recession adjustment period 

11 (as defined in subsection (h)(2)) , the FMAP (after the ap12 plication of subsection (a)) shall be increased (without re13 gard to any limitation otherwise specified in section 

14 1905(b) of the Social Security Act) by 7.6 percentage 

15 points. 

16 (c) ADDITIONAL RELIEF BASED ON INCREASE IN UN17 EMPLOYMENT.— 

18 (1) IN GENERAL.—Subject to subsections (e), (f), 

19 and (g), if a State is a qualifying State under para20 graph (2) for a calendar quarter occurring during the 

21 recession adjustment period, the FMAP for the State 

22 shall be further increased by the number of percentage 

23 points equal to the product of the State percentage 

24 applicable for the State under section 1905(b) of the 

25 Social Security Act (42 U.S.C. 1396d(b)) after the 
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1 application of subsections (a) and (b) and the appli2 cable percent determined in paragraph (3) for the cal3 endar quarter (or, if greater, for a previous such cal4 endar quarter, subject to paragraph (4)) . 

5 (2) QUALIFYING CRITERIA.— 

6 (A) IN GENERAL.—For purposes of para7 graph (1), a State qualifies for additional relief 

8 under this subsection for a calendar quarter oc9 curring during the recession adjustment period if 

10 the State is 1 of the 50 States or the District of 

11 Columbia and the State satisfies any of the fol12 lowing criteria for the quarter: 

13 (i) An increase of at least 1.5 percent14 age points, but less than 2.5 percentage 

15 points, in the average monthly unemploy16 ment rate, seasonally adjusted, for the State 

17 or District, as determined by comparing 

18 months in the most recent previous 3-con19 secutive month period for which data are 

20 available for the State or District to the 

21 lowest average monthly unemployment rate, 

22 seasonally adjusted, for the State or District 

23 for any 3-consecutive-month period pre24 ceding that period and beginning on or 

25 after January 1, 2006 (based on the most 
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1 recently available monthly publications of 

2 the Bureau of Labor Statistics of the De3 partment of Labor). 

4 (ii) An increase of at least 2.5 percent5 age points, but less than 3.5 percentage 

6 points, in the average monthly unemploy7 ment rate, seasonally adjusted, for the State 

8 or District (as so determined). 

9 (iii) An increase of at least 3.5 per10 centage points for the State or District, in 

11 the average monthly unemployment rate, 

12 seasonally adjusted, for the State or District 

13 (as so determined). 

14 (B) MAINTENANCE OF STATUS.—If a State 

15 qualifies for additional relief under this sub16 section for a calendar quarter, it shall be deemed 

17 to have qualified for such relief for each subse18 quent calendar quarter ending before July 1, 

19 2010. 

20 (3) APPLICABLE PERCENT.—For purposes of 

21 paragraph (1), the applicable percent is— 

22 (A) 2.5 percent, if the State satisfies the cri23 teria described in paragraph (2)(A)(i) for the 

24 calendar quarter; 
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1 (B) 4.5 percent if the State satisfies the cri2 teria described in paragraph (2)(A)(ii) for the 

3 calendar quarter; and 

4 (C) 6.5 percent if the State satisfies the cri5 teria described in paragraph (2)(A)(iii) for the 

6 calendar quarter. 

7 (4) MAINTENANCE OF HIGHER PERCENTAGE RE8 DUCTION FOR PERIOD AFTER LOWER PERCENTAGE

9 DEDUCTION WOULD OTHERWISE TAKE EFFECT.— 

10 (A) HOLD HARMLESS PERIOD.—If the per11 centage reduction applied to a State under para12 graph (3) for any calendar quarter in the reces13 sion adjustment period beginning on or after 

14 January 1, 2009, and ending before July 1, 

15 2010, (determined without regard to this para16 graph) is less than the percentage reduction ap17 plied for the preceding quarter (as so deter18 mined), the higher percentage reduction shall 

19 continue in effect for each subsequent calendar 

20 quarter ending before July 1, 2010. 

21 (B) NOTICE OF DECREASE IN PERCENTAGE

22 REDUCTION.—The Secretary shall notify a State 

23 at least 3 months prior to applying any lower 

24 percentage reduction to the State under para25 graph (3). 
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1 (d) INCREASE IN CAP ON MEDICAID PAYMENTS TO

2 TERRITORIES.—Subject to subsections (f) and (g), with re3 spect to entire fiscal years occurring during the recession 

4 adjustment period and with respect to fiscal years only a 

5 portion of which occurs during such period (and in propor6 tion to the portion of the fiscal year that occurs during such 

7 period), the amounts otherwise determined for Puerto Rico, 

8 the Virgin Islands, Guam, the Northern Mariana Islands, 

9 and American Samoa under subsections (f) and (g) of sec10 tion 1108 of the Social Security Act (42 6 U.S.C. 1308) 

11 shall each be increased by 15.2 percent. 

12 (e) SCOPE OF APPLICATION.—The increases in the 

13 FMAP for a State under this section shall apply for pur14 poses of title XIX of the Social Security Act and shall not 

15 apply with respect to— 

16 (1) disproportionate share hospital payments de17 scribed in section 1923 of such Act (42 U.S.C. 1396r– 

18 4); 

19 (2) payments under title IV of such Act (42 

20 U.S.C. 601 et seq.) (except that the increases under 

21 subsections (a) and (b) shall apply to payments under 

22 part E of title IV of such Act (42 U.S.C. 670 et seq.)); 

23 (3) payments under title XXI of such Act (42 

24 U.S.C. 1397aa et seq.); 
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1 (4) any payments under title XIX of such Act 

2 that are based on the enhanced FMAP described in 

3 section 2105(b) of such Act (42 U.S.C. 1397ee(b)); or 

4 (5) any payments under title XIX of such Act 

5 that are attributable to expenditures for medical as6 sistance provided to individuals made eligible under 

7 a State plan under title XIX of the Social Security 

8 Act (including under any waiver under such title or 

9 under section 1115 of such Act (42 U.S.C. 1315)) be10 cause of income standards (expressed as a percentage 

11 of the poverty line) for eligibility for medical assist12 ance that are higher than the income standards (as 

13 so expressed) for such eligibility as in effect on July 

14 1, 2008. 

15 (f) STATE INELIGIBILITY.— 

16 (1) MAINTENANCE OF ELIGIBILITY REQUIRE17 MENTS.— 

18 (A) IN GENERAL.—Subject to subpara19 graphs (B) and (C), a State is not eligible for 

20 an increase in its FMAP under subsection (a), 

21 (b), or (c), or an increase in a cap amount 

22 under subsection (d), if eligibility standards, 

23 methodologies, or procedures under its State plan 

24 under title XIX of the Social Security Act (in25 cluding any waiver under such title or under 
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1 section 1115 of such Act (42 U.S.C. 1315)) are 

2 more restrictive than the eligibility standards, 

3 methodologies, or procedures, respectively, under 

4 such plan (or waiver) as in effect on July 1, 

5 2008. 

6 (B) STATE REINSTATEMENT OF ELIGIBILITY

7 PERMITTED.—Subject to subparagraph (C), a 

8 State that has restricted eligibility standards, 

9 methodologies, or procedures under its State plan 

10 under title XIX of the Social Security Act (in11 cluding any waiver under such title or under 

12 section 1115 of such Act (42 U.S.C. 1315)) after 

13 July 1, 2008, is no longer ineligible under sub14 paragraph (A) beginning with the first calendar 

15 quarter in which the State has reinstated eligi16 bility standards, methodologies, or procedures 

17 that are no more restrictive than the eligibility 

18 standards, methodologies, or procedures, respec19 tively, under such plan (or waiver) as in effect 

20 on July 1, 2008. 

21 (C) SPECIAL RULES.—A State shall not be 

22 ineligible under subparagraph (A)— 

23 (i) for the calendar quarters before 

24 July 1, 2009, on the basis of a restriction 

25 that was applied after July 1, 2008, and be-
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1 fore the date of the enactment of this Act, if 

2 the State prior to July 1, 2009, has rein3 stated eligibility standards, methodologies, 

4 or procedures that are no more restrictive 

5 than the eligibility standards, methodolo6 gies, or procedures, respectively, under such 

7 plan (or waiver) as in effect on July 1, 

8 2008; or 

9 (ii) on the basis of a restriction that 

10 was directed to be made under State law as 

11 of July 1, 2008, and would have been in ef12 fect as of such date, but for a delay in the 

13 request for, and approval of, a waiver under 

14 section 1115 of such Act with respect to 

15 such restriction. 

16 (2) COMPLIANCE WITH PROMPT PAY REQUIRE17 MENTS.—No State shall be eligible for an increased 

18 FMAP rate as provided under this section for any 

19 claim submitted by a provider subject to the terms of 

20 section 1902(a)(37)(A) of the Social Security Act (42 

21 U.S.C. 1396a(a)(37)(A)) during any period in which 

22 that State has failed to pay claims in accordance 

23 with section 1902(a)(37)(A) of such Act. Each State 

24 shall report to the Secretary, no later than 30 days 

25 following the 1st day of the month, its compliance 
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1 with the requirements of section 1902(a)(37)(A) of the 

2 Social Security Act as they pertain to claims made 

3 for covered services during the preceding month. 

4 (3) NO WAIVER AUTHORITY.—The Secretary may 

5 not waive the application of this subsection or sub6 section (g) under section 1115 of the Social Security 

7 Act or otherwise. 

8 (g) REQUIREMENTS.— 

9 (1) IN GENERAL.—A State may not deposit or 

10 credit the additional Federal funds paid to the State 

11 as a result of this section to any reserve or rainy day 

12 fund maintained by the State. 

13 (2) STATE REPORTS.—Each State that is paid 

14 additional Federal funds as a result of this section 

15 shall, not later than September 30, 2011, submit a re16 port to the Secretary, in such form and such manner 

17 as the Secretary shall determine, regarding how the 

18 additional Federal funds were expended. 

19 (3) ADDITIONAL REQUIREMENT FOR CERTAIN

20 STATES.—In the case of a State that requires political 

21 subdivisions within the State to contribute toward the 

22 non-Federal share of expenditures under the State 

23 Medicaid plan required under section 1902(a)(2) of 

24 the Social Security Act (42 U.S.C. 1396a(a)(2)), the 

25 State is not eligible for an increase in its FMAP 
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1 under subsection (b) or (c), or an increase in a cap 

2 amount under subsection (d), if it requires that such 

3 political subdivisions pay for quarters during the re4 cession adjustment period a greater percentage of the 

5 non-Federal share of such expenditures, or a greater 

6 percentage of the non-Federal share of payments 

7 under section 1923, than the respective percentage 

8 that would have been required by the State under 

9 such plan on September 30, 2008, prior to applica10 tion of this section. 

11 (h) DEFINITIONS.—In this section, except as otherwise 

12 provided: 

13 (1) FMAP.—The term ‘‘FMAP’’ means the Fed14 eral medical assistance percentage, as defined in sec15 tion 1905(b) of the Social Security Act (42 U.S.C. 

16 1396d(b)), as determined without regard to this sec17 tion except as otherwise specified. 

18 (2) POVERTY LINE.—The term ‘‘poverty line’’ 

19 has the meaning given such term in section 673(2) of 

20 the Community Services Block Grant Act (42 U.S.C. 

21 9902(2)), including any revision required by such sec22 tion. 

23 (3) RECESSION ADJUSTMENT PERIOD.—The term 

24 ‘‘recession adjustment period’’ means the period be-
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1 ginning on October 1, 2008, and ending on December 

2 31, 2010. 

3 (4) SECRETARY.—The term ‘‘Secretary’’ means 

4 the Secretary of Health and Human Services. 

5 (5) STATE.—The term ‘‘State’’ has the meaning 

6 given such term for purposes of title XIX of the Social 

7 Security Act (42 U.S.C. 1396 et seq.). 

8 (i) SUNSET.—This section shall not apply to items and 

9 services furnished after the end of the recession adjustment 

10 period. 

11 SEC. 5002. EXTENSION AND UPDATE OF SPECIAL RULE FOR 

12 INCREASE OF MEDICAID DSH ALLOTMENTS 

13 FOR LOW DSH STATES. 

14 Section 1923(f)(5) of the Social Security Act (42 

15 U.S.C. 1396r–4(f)(5)) is amended— 

16 (1) in subparagraph (B)— 

17 (A) in the subparagraph heading, by strik18 ing ‘‘YEAR 2004 AND SUBSEQUENT FISCAL

19 YEARS’’ and inserting ‘‘YEARS 2004 THROUGH

20 2008’’; 

21 (B) in clause (i), by inserting ‘‘and’’ after 

22 the semicolon; 

23 (C) in clause (ii), by striking ‘‘; and’’ and 

24 inserting a period; and 

25 (D) by striking clause (iii); and 
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1 (2) by adding at the end the following subpara2 graph: 

3 ‘‘(C) FOR FISCAL YEAR 2009 AND SUBSE4 QUENT FISCAL YEARS.—In the case of a State in 

5 which the total expenditures under the State 

6 plan (including Federal and State shares) for 

7 disproportionate share hospital adjustments 

8 under this section for fiscal year 2006, as re9 ported to the Administrator of the Centers for 

10 Medicare & Medicaid Services as of August 31, 

11 2009, is greater than 0 but less than 3 percent 

12 of the State’s total amount of expenditures under 

13 the State plan for medical assistance during the 

14 fiscal year, the DSH allotment for the State with 

15 respect to— 

16 ‘‘(i) fiscal year 2009, shall be the DSH 

17 allotment for the State for fiscal year 2008 

18 increased by 16 percent; 

19 ‘‘(ii) fiscal year 2010, shall be the 

20 DSH allotment for the State for fiscal year 

21 2009 increased by 16 percent; 

22 ‘‘(iii) fiscal year 2011 for the period 

ending on December 31, 2010, shall be 1 23 ⁄4 of 

24 the DSH allotment for the State for fiscal 

25 year 2010 increased by 16 percent; 
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1 ‘‘(iv) fiscal year 2011 for the period be2 ginning on January 1, 2011, and ending on 

September 30, 2011, shall be 3 3 ⁄4 of the DSH 

4 allotment that would have been determined 

5 under this subsection for the State for fiscal 

6 year 2011 if this subparagraph had not 

7 been enacted; 

8 ‘‘(v) fiscal year 2012, shall be the DSH 

9 allotment that would have been determined 

10 under this subsection for the State for fiscal 

11 year 2012 if this subparagraph had not 

12 been enacted; and 

13 ‘‘(vi) fiscal year 2013 and any subse14 quent fiscal year, shall be the DSH allot15 ment for the State for the previous fiscal 

16 year subject to an increase for inflation as 

17 provided in paragraph (3)(A).’’. 

18 SEC. 5003. PAYMENT OF MEDICARE LIABILITY TO STATES 

19 AS A RESULT OF THE SPECIAL DISABILITY 

20 WORKLOAD PROJECT. 

21 (a) IN GENERAL.—The Secretary, in consultation with 

22 the Commissioner, shall work with each State to reach an 

23 agreement, not later than 3 months after the date of enact24 ment of this Act, on the amount of a payment for the State 

25 related to the Medicare program liability as a result of the 
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1 Special Disability Workload project, subject to the require2 ments of subsection (c). 

3 (b) PAYMENTS.— 

4 (1) DEADLINE FOR MAKING PAYMENTS.—Not 

5 later than 30 days after reaching an agreement with 

6 a State under subsection (a), the Secretary shall pay 

7 the State, from the amounts appropriated under 

8 paragraph (2), the payment agreed to for the State. 

9 (2) APPROPRIATION.—Out of any money in the 

10 Treasury not otherwise appropriated, there is appro11 priated $3,000,000,000 for fiscal year 2009 for mak12 ing payments to States under paragraph (1). 

13 (3) LIMITATIONS.—In no case may— 

14 (A) the aggregate amount of payments made 

15 by the Secretary to States under paragraph (1) 

16 exceed $3,000,000,000; or 

17 (B) any payments be provided by the Sec18 retary under this section after the first day of the 

19 first month that begins 4 months after the date 

20 of enactment of this Act. 

21 (c) REQUIREMENTS.—The requirements of this sub22 section are the following: 

23 (1) FEDERAL DATA USED TO DETERMINE

24 AMOUNT OF PAYMENTS.—The amount of the payment 

25 under subsection (a) for each State is determined on 
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1 the basis of the most recent Federal data available, 

2 including the use of proxies and reasonable estimates 

3 as necessary, for determining expeditiously the 

4 amount of the payment that shall be made to each 

5 State that enters into an agreement under this sec6 tion. The payment methodology shall consider the fol7 lowing factors: 

8 (A) The number of SDW cases found to 

9 have been eligible for benefits under the Medicare 

10 program and the month of the initial Medicare 

11 program eligibility for such cases. 

12 (B) The applicable non-Federal share of ex13 penditures made by a State under the Medicaid 

14 program during the time period for SDW cases. 

15 (C) Such other factors as the Secretary and 

16 the Commissioner, in consultation with the 

17 States, determine appropriate. 

18 (2) CONDITIONS FOR PAYMENTS.—A State shall 

19 not receive a payment under this section unless the 

20 State— 

21 (A) waives the right to file a civil action (or 

22 to be a party to any action) in any Federal or 

23 State court in which the relief sought includes a 

24 payment from the United States to the State re25 lated to the Medicare liability under title XVIII 
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1 of the Social Security Act (42 U.S.C. 1395 et 

2 seq.) as a result of the Special Disability Work3 load project; and 

4 (B) releases the United States from any fur5 ther claims for reimbursement of State expendi6 tures as a result of the Special Disability Work7 load project. 

8 (3) NO INDIVIDUAL STATE CLAIMS DATA RE9 QUIRED.—No State shall be required to submit indi10 vidual claims evidencing payment under the Med11 icaid program as a condition for receiving a payment 

12 under this section. 

13 (4) INELIGIBLE STATES.—No State that is a 

14 party to a civil action in any Federal or State court 

15 in which the relief sought includes a payment from 

16 the United States to the State related to the Medicare 

17 liability under title XVIII of the Social Security Act 

18 (42 U.S.C. 1395 et seq.) as a result of the Special 

19 Disability Workload project shall be eligible to receive 

20 a payment under this section while such an action is 

21 pending or if such an action is resolved in favor of 

22 the State. 

23 (d) DEFINITIONS.—In this section: 

24 (1) COMMISSIONER.—The term ‘‘Commissioner’’ 

25 means the Commissioner of Social Security. 
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1 (2) MEDICAID PROGRAM.—The term ‘‘Medicaid 

2 program’’ means the program of medical assistance 

3 established under title XIX of the Social Security Act 

4 (42 U.S.C. 1396a et seq.) and includes medical assist5 ance provided under any waiver of that program ap6 proved under section 1115 or 1915 of such Act (42 

7 U.S.C. 1315, 1396n) or otherwise. 

8 (3) MEDICARE PROGRAM.—The term ‘‘Medicare 

9 program’’ means the program established under title 

10 XVIII of the Social Security Act (42 U.S.C. 1395 et 

11 seq.). 

12 (4) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of Health and Human Services. 

14 (5) SDW CASE.—The term ‘‘SDW case’’ means 

15 a case in the Special Disability Workload project in16 volving an individual determined by the Commis17 sioner to have been eligible for benefits under title II 

18 of the Social Security Act (42 U.S.C. 401 et seq.) for 

19 a period during which such benefits were not provided 

20 to the individual and who was, during all or part of 

21 such period, enrolled in a State Medicaid program. 

22 (6) SPECIAL DISABILITY WORKLOAD PROJECT.— 

23 The term ‘‘Special Disability Workload project’’ 

24 means the project described in the 2008 Annual Re25 port of the Board of Trustees of the Federal Old-Age 
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1 and Survivors Insurance and Federal Disability In2 surance Trust Funds, H.R. Doc. No. 110–104, 110th 

3 Cong. (2008). 

4 (7) STATE.—The term ‘‘State’’ means each of the 

5 50 States and the District of Columbia. 

6 SEC. 5004. FUNDING FOR THE DEPARTMENT OF HEALTH 

7 AND HUMAN SERVICES OFFICE OF THE IN8 SPECTOR GENERAL. 

9 For purposes of ensuring the proper expenditure of 

10 Federal funds under title XIX of the Social Security Act 

11 (42 U.S.C. 1396 et seq.), there is appropriated to the Office 

12 of the Inspector General of the Department of Health and 

13 Human Services, out of any money in the Treasury not 

14 otherwise appropriated and without further appropriation, 

15 $31,250,000 for the recession adjustment period (as defined 

16 in section 5001(h)(3)). Amounts appropriated under this 

17 section shall remain available for expenditure until Sep18 tember 30, 2012, and shall be in addition to any other 

19 amounts appropriated or made available to such Office for 

20 such purposes. 

21 SEC. 5005. GAO STUDY AND REPORT REGARDING STATE 

22 NEEDS DURING PERIODS OF NATIONAL ECO23 NOMIC DOWNTURN. 

24 (a) IN GENERAL.—The Comptroller General of the 

25 United States shall study the period of national economic 
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1 downturn in effect on the date of enactment of this Act, 

2 as well as previous periods of national economic downturn 

3 since 1974, for the purpose of developing recommendations 

4 for addressing the needs of States during such periods. As 

5 part of such analysis, the Comptroller General shall study 

6 the past and projected effects of temporary increases in the 

7 Federal medical assistance percentage under the Medicaid 

8 program with respect to such periods. 

9 (b) REPORT.—Not later than April 1, 2011, the Comp10 troller General of the United States shall submit a report 

11 to the appropriate committees of Congress on the results of 

12 the study conducted under paragraph (1). Such report shall 

13 include the following: 

14 (1) Such recommendations as the Comptroller 

15 General determines appropriate for modifying the na16 tional economic downturn assistance formula for tem17 porary adjustment of the Federal medical assistance 

18 percentage under Medicaid (also referred to as a 

19 ‘‘countercyclical FMAP’’) described in GAO report 

20 number GAO–07–97 to improve the effectiveness of the 

21 application of such percentage in addressing the needs 

22 of States during periods of national economic down23 turn, including recommendations for— 
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1 (A) improvements to the factors that would 

2 begin and end the application of such percent3 age; 

4 (B) how the determination of the amount of 

5 such percentage could be adjusted to address 

6 State and regional economic variations during 

7 such periods; and 

8 (C) how the determination of the amount of 

9 such percentage could be adjusted to be more re10 sponsive to actual Medicaid costs incurred by 

11 States during such periods. 

12 (2) An analysis of the impact on States during 

13 such periods of— 

14 (A) declines in private health benefits cov15 erage; 

16 (B) declines in State revenues; and 

17 (C) caseload maintenance and growth under 

18 Medicaid, the State Children’s Health Insurance 

19 Program, or any other publicly-funded programs 

20 to provide health benefits coverage for State resi21 dents. 

22 (3) Identification of, and recommendations for 

23 addressing, the effects on States of any other specific 

24 economic indicators that the Comptroller General de25 termines appropriate. 
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1 TITLE VI—EXECUTIVE 

2 COMPENSATION 

3 SUBTITLE A—OVERSIGHT

TITLE VI—EXECUTIVE COMPENSATION OVERSIGHT 

Sec. 6001. Definitions. 

Sec. 6002. Executive compensation and corporate governance. 

Sec. 6003. Board Compensation Committee. 

Sec. 6004. Limitation on luxury expenditures. 

Sec. 6005. Shareholder approval of executive compensation. 

Sec. 6006. Review of prior payments to executives. 

4 SEC. 6001. DEFINITIONS. 

5 For purposes of this title, the following definitions 

6 shall apply: 

7 (1) SENIOR EXECUTIVE OFFICER.—The term 

8 ‘‘senior executive officer’’ means an individual who is 

9 1 of the top 5 most highly paid executives of a public 

10 company, whose compensation is required to be dis11 closed pursuant to the Securities Exchange Act of 

12 1934, and any regulations issued thereunder, and 

13 non-public company counterparts. 

14 (2) GOLDEN PARACHUTE PAYMENT.—The term 

15 ‘‘golden parachute payment’’ means any payment to 

16 a senior executive officer for departure from a com17 pany for any reason, except for payments for services 

18 performed or benefits accrued. 

19 (3) TARP.—The term ‘‘TARP’’ means the Trou20 bled Asset Relief Program established under the 
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1 Emergency Economic Stabilization Act of 2008 (Pub2 lic Law 110–343, 12 U.S.C. 5201 et seq.). 

3 (4) TARP RECIPIENT.—The term ‘‘TARP recipi4 ent’’ means any entity that has received or will re5 ceive financial assistance under the financial assist6 ance provided under the TARP. 

7 (5) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of the Treasury. 

9 (6) COMMISSION.—The term ‘‘Commission’’ 

10 means the Securities and Exchange Commission. 

11 SEC. 6002. EXECUTIVE COMPENSATION AND CORPORATE 

12 GOVERNANCE. 

13 (a) IN GENERAL.—During the period in which any 

14 obligation arising from financial assistance provided under 

15 the TARP remains outstanding, each TARP recipient shall 

16 be subject to— 

17 (1) the standards established by the Secretary 

18 under this title; and 

19 (2) the provisions of section 162(m)(5) of the In20 ternal Revenue Code of 1986, as applicable. 

21 (b) STANDARDS REQUIRED.—The Secretary shall re22 quire each TARP recipient to meet appropriate standards 

23 for executive compensation and corporate governance. 

24 (c) SPECIFIC REQUIREMENTS.—The standards estab25 lished under subsection (b) shall include— 
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1 (1) limits on compensation that exclude incen2 tives for senior executive officers of the TARP recipi3 ent to take unnecessary and excessive risks that 

4 threaten the value of such recipient during the period 

5 that any obligation arising from TARP assistance is 

6 outstanding; 

7 (2) a provision for the recovery by such TARP 

8 recipient of any bonus, retention award, or incentive 

9 compensation paid to a senior executive officer and 

10 any of the next 20 most highly-compensated employees 

11 of the TARP recipient based on statements of earn12 ings, revenues, gains, or other criteria that are later 

13 found to be materially inaccurate; 

14 (3) a prohibition on such TARP recipient mak15 ing any golden parachute payment to a senior execu16 tive officer or any of the next 5 most highly-com17 pensated employees of the TARP recipient during the 

18 period that any obligation arising from TARP assist19 ance is outstanding; 

20 (4) a prohibition on such TARP recipient pay21 ing or accruing any bonus, retention award, or incen22 tive compensation during the period that the obliga23 tion is outstanding to at least the 25 most highly24 compensated employees, or such higher number as the 
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1 Secretary may determine is in the public interest 

2 with respect to any TARP recipient; 

3 (5) a prohibition on any compensation plan that 

4 would encourage manipulation of the reported earn5 ings of such TARP recipient to enhance the com6 pensation of any of its employees; and 

7 (6) a requirement for the establishment of a 

8 Board Compensation Committee that meets the re9 quirements of section 6003. 

10 (d) CERTIFICATION OF COMPLIANCE.—The chief execu11 tive officer and chief financial officer (or the equivalents 

12 thereof) of each TARP recipient shall provide a written cer13 tification of compliance by the TARP recipient with the 

14 requirements of this title— 

15 (1) in the case of a TARP recipient, the securi16 ties of which are publicly traded, to the Securities 

17 and Exchange Commission, together with annual fil18 ings required under the securities laws; and 

19 (2) in the case of a TARP recipient that is not 

20 a publicly traded company, to the Secretary. 

21 SEC. 6003. BOARD COMPENSATION COMMITTEE. 

22 (a) ESTABLISHMENT OF BOARD REQUIRED.—Each 

23 TARP recipient shall establish a Board Compensation 

24 Committee, comprised entirely of independent directors, for 

25 the purpose of reviewing employee compensation plans. 
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1 (b) MEETINGS.—The Board Compensation Committee 

2 of each TARP recipient shall meet at least semiannually 

3 to discuss and evaluate employee compensation plans in 

4 light of an assessment of any risk posed to the TARP recipi5 ent from such plans. 

6 SEC. 6004. LIMITATION ON LUXURY EXPENDITURES. 

7 (a) POLICY REQUIRED.—The board of directors of any 

8 TARP recipient shall have in place a company-wide policy 

9 regarding excessive or luxury expenditures, as identified by 

10 the Secretary, which may include excessive expenditures 

11 on— 

12 (1) entertainment or events; 

13 (2) office and facility renovations; 

14 (3) aviation or other transportation services; or 

15 (4) other activities or events that are not reason16 able expenditures for conferences, staff development, 

17 reasonable performance incentives, or other similar 

18 measures conducted in the normal course of the busi19 ness operations of the TARP recipient. 

20 SEC. 6005. SHAREHOLDER APPROVAL OF EXECUTIVE COM21 PENSATION. 

22 (a) ANNUAL SHAREHOLDER APPROVAL OF EXECUTIVE

23 COMPENSATION.—Any proxy or consent or authorization 

24 for an annual or other meeting of the shareholders of any 

25 TARP recipient during the period in which any obligation 
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1 arising from financial assistance provided under the TARP 

2 remains outstanding shall permit a separate shareholder 

3 vote to approve the compensation of executives, as disclosed 

4 pursuant to the compensation disclosure rules of the Com5 mission (which disclosure shall include the compensation 

6 discussion and analysis, the compensation tables, and any 

7 related material). 

8 (b) NONBINDING VOTE.—A shareholder vote described 

9 in subsection (a) shall not be binding on the board of direc10 tors of a TARP recipient, and may not be construed as over11 ruling a decision by such board, nor to create or imply any 

12 additional fiduciary duty by such board, nor shall such vote 

13 be construed to restrict or limit the ability of shareholders 

14 to make proposals for inclusion in proxy materials related 

15 to executive compensation. 

16 (c) DEADLINE FOR RULEMAKING.—Not later than 1 

17 year after the date of enactment of this Act, the Commission 

18 shall issue any final rules and regulations required by this 

19 section. 

20 SEC. 6006. REVIEW OF PRIOR PAYMENTS TO EXECUTIVES. 

21 (a) IN GENERAL.—The Secretary shall review bonuses, 

22 retention awards, and other compensation paid to employ23 ees of each entity receiving TARP assistance before the date 

24 of enactment of this Act to determine whether any such pay25 ments were excessive, inconsistent with the purposes of this 
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1 Act or the TARP, or otherwise contrary to the public inter2 est. 

3 (b) NEGOTIATIONS FOR REIMBURSEMENT.—If the Sec4 retary makes a determination described in subsection (a), 

5 the Secretary shall seek to negotiate with the TARP recipi6 ent and the subject employee for appropriate reimburse7 ments to the Federal Government with respect to compensa8 tion or bonuses. 

9 Subtitle B—Limits on Executive 

10 Compensation 

11 SEC. 6011. SHORT TITLE. 

12 This subtitle may be cited as the ‘‘Cap Executive Offi13 cer Pay Act of 2009’’. 

14 SEC. 6012. LIMIT ON EXECUTIVE COMPENSATION. 

15 (a) IN GENERAL.—Notwithstanding any other provi16 sion of law or agreement to the contrary, no person who 

17 is an officer, director, executive, or other employee of a fi18 nancial institution or other entity that receives or has re19 ceived funds under the Troubled Asset Relief Program (or 

20 ‘‘TARP’’), established under section 101 of the Emergency 

21 Economic Stabilization Act of 2008, may receive annual 

22 compensation in excess of the amount of compensation paid 

23 to the President of the United States. 

24 (b) DURATION.—The limitation in subsection (a) shall 

25 be a condition of the receipt of assistance under the TARP, 
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1 and of any modification to such assistance that was re2 ceived on or before the date of enactment of this Act, and 

3 shall remain in effect with respect to each financial institu4 tion or other entity that receives such assistance or modi5 fication for the duration of the assistance or obligation pro6 vided under the TARP. 

7 SEC. 6013. RULEMAKING AUTHORITY. 

8 The Secretary shall expeditiously issue such rules as 

9 are necessary to carry out this subtitle, including with re10 spect to reimbursement of compensation amounts, as appro11 priate. 

12 SEC. 6014. COMPENSATION. 

13 As used in this subtitle, the term ‘‘compensation’’ in14 cludes wages, salary, deferred compensation, retirement 

15 contributions, options, bonuses, property, and any other 

16 form of compensation or bonus that the Secretary of the 

17 Treasury determines is appropriate. 

18 Subtitle C—Excessive Bonuses 

19 SEC. 6021. TREATMENT OF EXCESSIVE BONUSES BY TARP 

20 RECIPIENTS. 

21 (a) IN GENERAL.—If, before the date of enactment of 

22 this Act, the preferred stock of a financial institution was 

23 purchased by the Government using funds provided under 

24 the Troubled Asset Relief Program established pursuant to 

25 the Emergency Economic Stabilization Act of 2008, then, 
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1 notwithstanding any otherwise applicable restriction on the 

2 redeemability of such preferred stock, such financial institu3 tion shall redeem an amount of such preferred stock equal 

4 to the aggregate amount of all excessive bonuses paid or 

5 payable to all covered individuals. 

6 (b) TIMING.—Each financial institution described in 

7 subsection (a) shall comply with the requirements of sub8 section (a)— 

9 (1) not later than 120 days after the date of en10 actment of this Act, with respect to excessive bonuses 

11 (or portions thereof) paid before the date of enactment 

12 of this Act; and 

13 (2) not later than the day before an excessive 

14 bonus (or portion thereof) is paid, with respect to any 

15 excessive bonus (or portion thereof) paid on or after 

16 the date of enactment of this Act. 

17 (c) DEFINITIONS.—As used in this section, the fol18 lowing definitions shall apply: 

19 (1) EXCESSIVE BONUS.— 

20 (A) IN GENERAL.—The term ‘‘excessive 

21 bonus’’ means the portion of the applicable bonus 

22 payments made to a covered individual in excess 

23 of $100,000. 

24 (B) APPLICABLE BONUS PAYMENTS.— 
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1 (i) IN GENERAL.—The term ‘‘applica2 ble bonus payment’’ means any bonus pay3 ment to a covered individual— 

4 (I) which is paid or payable by 

5 reason of services performed by such 

6 individual in a taxable year of the fi7 nancial institution (or any member of 

8 a controlled group described in sub9 paragraph (D)) ending in 2008, and 

10 (II) the amount of which was first 

11 communicated to such individual dur12 ing the period beginning on January 

13 1, 2008, and ending January 31, 2009, 

14 or was based on a resolution of the 

15 board of directors of such institution 

16 that was adopted before the end of such 

17 taxable year. 

18 (ii) CERTAIN PAYMENTS AND CONDI19 TIONS DISREGARDED.—In determining 

20 whether a bonus payment is described in 

21 clause (i)(I)— 

22 (I) a bonus payment that relates 

23 to services performed in any taxable 

24 year before the taxable year described 

25 in such clause and that is wholly or 
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1 partially contingent on the perform2 ance of services in the taxable year so 

3 described shall be disregarded, and 

4 (II) any condition on a bonus 

5 payment for services performed in the 

6 taxable year so described that the em7 ployee perform services in taxable 

8 years after the taxable year so de9 scribed shall be disregarded. 

10 (C) BONUS PAYMENT.—The term ‘‘bonus 

11 payment’’ means any payment which— 

12 (i) is a discretionary payment to a 

13 covered individual by a financial institu14 tion (or any member of a controlled group 

15 described in subparagraph (D)) for services 

16 rendered, 

17 (ii) is in addition to any amount pay18 able to such individual for services per19 formed by such individual at a regular 

20 hourly, daily, weekly, monthly, or similar 

21 periodic rate, and 

22 (iii) is paid or payable in cash or 

23 other property other than— 

24 (I) stock in such institution or 

25 member, or 
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1 (II) an interest in a troubled asset 

2 (within the meaning of the Emergency 

3 Economic Stabilization Act of 2008) 

4 held directly or indirectly by such in5 stitution or member. 

6 Such term does not include payments to an em7 ployee as commissions, welfare and fringe bene8 fits, or expense reimbursements. 

9 (D) COVERED INDIVIDUAL.—The term ‘‘cov10 ered individual’’ means, with respect to any fi11 nancial institution, any director or officer or 

12 other employee of such financial institution or of 

13 any member of a controlled group of corpora14 tions (within the meaning of section 52(a) of the 

15 Internal Revenue Code of 1986) that includes 

16 such financial institution. 

17 (2) FINANCIAL INSTITUTION.—The term ‘‘finan18 cial institution’’ has the same meaning as in section 

19 3 of the Emergency Economic Stabilization Act of 

20 2008 (12 U.S.C. 5252). 

21 (d) EXCISE TAX ON TARP COMPANIES THAT FAIL TO

22 REDEEM CERTAIN SECURITIES FROM UNITED STATES.— 

23 (1) IN GENERAL.—Chapter 46 of the Internal 

24 Revenue Code of 1986 (relating to excise tax on gold-
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1 en parachute payments) is amended by adding at the 

2 end the following new section: 

3 ‘‘SEC. 4999A. FAILURE TO REDEEM CERTAIN SECURITIES 

4 FROM UNITED STATES. 

5 ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed a 

6 tax on any financial institution which— 

7 ‘‘(1) is required to redeem an amount of its pre8 ferred stock from the United States pursuant to sec9 tion 1903(a) of the American Recovery and Reinvest10 ment Tax Act of 2009, and 

11 ‘‘(2) fails to redeem all or any portion of such 

12 amount within the period prescribed for such redemp13 tion. 

14 ‘‘(b) AMOUNT OF TAX.—The amount of the tax im15 posed by subsection (a) shall be equal to 35 percent of the 

16 amount which the financial institution failed to redeem 

17 within the time prescribed under 1903(b) of the American 

18 Recovery and Reinvestment Tax Act of 2009. 

19 ‘‘(c) ADMINISTRATIVE PROVISIONS.— 

20 ‘‘(1) IN GENERAL.—For purposes of subtitle F, 

21 any tax imposed by this section shall be treated as a 

22 tax imposed by subtitle A for the taxable year in 

23 which a deduction is allowed for any excessive bonus 

24 with respect to which the redemption described in 

25 subsection (a)(1) is required to be made. 
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1 ‘‘(2) EXTENSION OF TIME.—The due date for 

2 payment of tax imposed by this section shall in no 

3 event be earlier than the 150th day following the date 

4 of the enactment of this section.’’. 

5 (2) CONFORMING AMENDMENTS.— 

6 (A) The heading for chapter 46 of such Code 

7 are amended to read as follows: 

‘‘CHAPTER 46-TAXES ON CERTAIN EXCESSIVE REMUNERATION

‘‘Sec. 4999. Golden parachute payments. 

‘‘Sec. 4999A. Failure to redeem certain securities from United States.’’. 

8 (B) The item relating to chapter 46 in the 

9 table of chapters for subtitle D of such Code is 

10 amended to read as follows: 

‘‘Chapter 46. Taxes on excessive remuneration.’’. 

11 (3) EFFECTIVE DATE.—The amendments made 

12 by this subsection shall apply to failures described in 

13 section 4999A(a)(2) of the Internal Revenue Code of 

14 1986 occurring after the date of the enactment of this 

15 Act. 

16 TITLE VII—FORECLOSURE 

17 PREVENTION 

TITLE VII—FORECLOSURE PREVENTION 

Sec. 7001. Mandatory loan modifications. 

18 SEC. 7001. MANDATORY LOAN MODIFICATIONS. 

19 Section 109(a) of the Emergency Economic Stabiliza20 tion Act of 2008 (12 U.S.C. 5219) is amended— 
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1 (1) by striking the last sentence; 

2 (2) by striking ‘‘To the extent’’ and inserting the 

3 following: 

4 ‘‘(1) IN GENERAL.—To the extent’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(2) LOAN MODIFICATIONS REQUIRED.— 

7 ‘‘(A) IN GENERAL.—In addition to actions 

8 required under paragraph (1), the Secretary 

9 shall, not later than 15 days after the date of en10 actment of this paragraph, develop and imple11 ment a plan to facilitate loan modifications to 

12 prevent avoidable mortgage loan foreclosures. 

13 ‘‘(B) FUNDING.—Of amounts made avail14 able under section 115 and not otherwise obli15 gated, not less than $50,000,000,000, shall be 

16 made available to the Secretary for purposes of 

17 carrying out the mortgage loan modification 

18 plan required to be developed and implemented 

19 under this paragraph. 

20 ‘‘(C) CRITERIA.—The loan modification 

21 plan required by this paragraph may incor22 porate the use of— 

23 ‘‘(i) loan guarantees and credit en24 hancements; 
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1 ‘‘(ii) the reduction of loan principal 

2 amounts and interest rates; 

3 ‘‘(iii) extension of mortgage loan terms; 

4 and 

5 ‘‘(iv) any other similar mechanisms or 

6 combinations thereof, as determined appro7 priate by the Secretary. 

8 ‘‘(D) DESIGNATION AUTHORITY.— 

9 ‘‘(i) FDIC.—The Secretary may des10 ignate the Corporation, on a reimbursable 

11 basis, to carry out the loan modification 

12 plan developed under this paragraph. 

13 ‘‘(ii) CONTRACTING AUTHORITY.—If 

14 designated under clause (i), the Corporation 

15 may use its contracting authority under 

16 section 9 of the Federal Deposit Insurance 

17 Act. 

18 ‘‘(E) CONSULTATION REQUIRED.—In devel19 oping the loan modification plan under this 

20 paragraph, the Secretary shall consult with the 

21 Chairperson of the Board of Directors of the Cor22 poration, the Board, and the Secretary of Hous23 ing and Urban Development. 

24 ‘‘(F) REPORTS TO CONGRESS.—The Sec25 retary shall provide to the Committee on Bank-
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1 ing, Housing, and Urban Affairs of the Senate 

2 and the Committee on Financial Services of the 

3 House of Representatives— 

4 ‘‘(i) upon development of the plan re5 quired by this paragraph, a report describ6 ing such plan; and 

7 ‘‘(ii) a monthly report on the number 

8 and types of loan modifications occurring 

9 during the reporting period, and the per10 formance of the loan modification plan 

11 overall.’’. 

12 TITLE VIII—FORECLOSURE 

13 MITIGATION 

TITLE VIII—FORECLOSURE MITIGATION 

Sec. 8001. Short Title. 

Sec. 8002. Definitions. 

Sec. 8003. Payments to eligible servicers authorized. 

Sec. 8004. Authorization of appropriations. 

Sec. 8005. Sunset of authority. 

14 SEC. 8001. SHORT TITLE. 

15 This title may be cited as the ‘‘Help Families Keep 

16 Their Homes Act of 2009’’. 

17 SEC. 8002. DEFINITIONS. 

18 For purposes of this title— 

19 (1) the term ‘‘securitized mortgages’’ means resi20 dential mortgages that have been pooled by a 

21 securitization vehicle; 
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1 (2) the term ‘‘securitization vehicle’’ means a 

2 trust, corporation, partnership, limited liability enti3 ty, special purpose entity, or other structure that— 

4 (A) is the issuer, or is created by the issuer, 

5 of mortgage pass-through certificates, participa6 tion certificates, mortgage-backed securities, or 

7 other similar securities backed by a pool of assets 

8 that includes residential mortgage loans; 

9 (B) holds all of the mortgage loans which 

10 are the basis for any vehicle described in sub11 paragraph (A); and 

12 (C) has not issued securities that are guar13 anteed by the Federal National Mortgage Asso14 ciation, the Federal Home Loan Mortgage Cor15 poration, or the Government National Mortgage 

16 Association; 

17 (3) the term ‘‘servicer’’ means a servicer of 

18 securitized mortgages; 

19 (4) the term ‘‘eligible servicer’’ means a servicer 

20 of pooled and securitized residential mortgages; 

21 (5) the term ‘‘eligible mortgage’’ means a resi22 dential mortgage, the principal amount of which did 

23 not exceed the conforming loan size limit that was in 

24 existence at the time of origination for a comparable 
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1 dwelling, as established by the Federal National Mort2 gage Association; 

3 (6) the term ‘‘Secretary’’ means the Secretary of 

4 the Treasury; 

5 (7) the term ‘‘effective term of the Act’’ means the 

6 period beginning on the effective date of this title and 

7 ending on December 31, 2011; 

8 (8) the term ‘‘incentive fee’’ means the monthly 

9 payment to eligible servicers, as determined under 

10 section 7003; and 

11 (9) the term ‘‘prepayment fee’’ means the pay12 ment to eligible servicers, as determined under section 

13 7003(b). 

14 SEC. 8003. PAYMENTS TO ELIGIBLE SERVICERS AUTHOR15 IZED. 

16 (a) AUTHORITY.—The Secretary is authorized to make 

17 payments to eligible servicers, subject to the terms and con18 ditions established under this title. 

19 (b) FEES PAID TO ELIGIBLE SERVICERS.— 

20 (1) IN GENERAL.—An eligible servicer may col21 lect reasonable incentive fee payments, as established 

22 by the Secretary, not to exceed $2,000 per loan. 

23 (2) CONSULTATION.—The fees permitted under 

24 this section shall be subject to standards established 

25 by the Secretary, in consultation with the Secretary 
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1 of Housing and Urban Development and the Chair2 man of the Board of Directors of the Federal Deposit 

3 Insurance Corporation, which standards shall— 

4 (A) include an evaluation of whether an eli5 gible mortgage is affordable for the remainder of 

6 its term; and 

7 (B) identify a reasonable fee to be paid to 

8 the servicer in the event that an eligible mortgage 

9 is prepaid. 

10 (3) FORM OF PAYMENT.—Fees permitted under 

11 this section may be paid in a lump sum or on a 

12 monthly basis. If paid on a monthly basis, the fee 

13 may only be remitted as long as the loan performs. 

14 (c) SAFE HARBOR.—Notwithstanding any other provi15 sion of law, and notwithstanding any investment contract 

16 between a servicer and a securitization vehicle, a servicer— 

17 (1) owes any duty to maximize the net present 

18 value of the pooled mortgages in the securitization ve19 hicle to all investors and parties having a direct or 

20 indirect interest in such vehicle, and not to any indi21 vidual party or group of parties; and 

22 (2) shall be deemed to act in the best interests of 

23 all such investors and parties if the servicer agrees to 

24 or implements a modification, workout, or other loss 

25 mitigation plan for a residential mortgage or a class 
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1 of residential mortgages that constitutes a part or all 

2 of the pooled mortgages in such securitization vehicle, 

3 if— 

4 (A) default on the payment of such mort5 gage has occurred or is reasonably foreseeable; 

6 (B) the property securing such mortgage is 

7 occupied by the mortgagor of such mortgage or 

8 the homeowner; and 

9 (C) the servicer reasonably and in good 

10 faith believes that the anticipated recovery on the 

11 principal outstanding obligation of the mortgage 

12 under the modification or workout plan exceeds, 

13 on a net present value basis, the anticipated re14 covery on the principal outstanding obligation of 

15 the mortgage through foreclosure; 

16 (3) shall not be obligated to repurchase loans 

17 from, or otherwise make payments to, the 

18 securitization vehicle on account of a modification, 

19 workout, or other loss mitigation plan that satisfies 

20 the conditions of paragraph (2); and 

21 (4) if it acts in a manner consistent with the du22 ties set forth in paragraphs (1) and (2), shall not be 

23 liable for entering into a modification or workout 

24 plan to any person— 
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1 (A) based on ownership by that person of a 

2 residential mortgage loan or any interest in a 

3 pool of residential mortgage loans, or in securi4 ties that distribute payments out of the prin5 cipal, interest, and other payments in loans in 

6 the pool; 

7 (B) who is obligated pursuant to a deriva8 tive instrument to make payments determined in 

9 reference to any loan or any interest referred to 

10 in subparagraph (A); or 

11 (C) that insures any loan or any interest 

12 referred to in subparagraph (A) under any pro13 vision of law or regulation of the United States 

14 or any State or political subdivision thereof. 

15 (d) REPORTING REQUIREMENTS.— 

16 (1) IN GENERAL.—Each servicer shall report reg17 ularly, not less frequently than monthly, to the Sec18 retary on the extent and scope of the loss mitigation 

19 activities of the mortgage owner. 

20 (2) CONTENT.—Each report required by this sub21 section shall include— 

22 (A) the number and percent of residential 

23 mortgage loans receiving loss mitigation that 

24 have become performing loans; 
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1 (B) the number and percent of residential 

2 mortgage loans receiving loss mitigation that 

3 have proceeded to foreclosure; 

4 (C) the total number of foreclosures initi5 ated during the reporting period; 

6 (D) data on loss mitigation activities, in7 cluding the performance of mitigated loans, 

8 disagreggated for each form of loss mitigation, 

9 which forms may include— 

10 (i) a waiver of any late payment 

11 charge, penalty interest, or any other fees or 

12 charges, or any combination thereof; 

13 (ii) the establishment of a repayment 

14 plan under which the homeowner resumes 

15 regularly scheduled payments and pays ad16 ditional amounts at scheduled intervals to 

17 cure the delinquency; 

18 (iii) forbearance under the loan that 

19 provides for a temporary reduction in or 

20 cessation of monthly payments, followed by 

21 a reamortization of the amounts due under 

22 the loan, including arrearage, and a new 

23 schedule of repayment amounts; 

24 (iv) waiver, modification, or variation 

25 of any material term of the loan, including 
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1 short-term, long-term, or life-of-loan modi2 fications that change the interest rate, for3 give or forbear with respect to the payment 

4 of principal or interest, or extend the final 

5 maturity date of the loan; 

6 (v) short refinancing of the loan con7 sisting of acceptance of payment from or on 

8 behalf of the homeowner of an amount less 

9 than the amount alleged to be due and 

10 owing under the loan, including principal, 

11 interest, and fees, in full satisfaction of the 

12 obligation under such loan and as part of 

13 a refinance transaction in which the prop14 erty is intended to remain the principal 

15 residence of the homeowner; 

16 (vi) acquisition of the property by the 

17 owner or servicer by deed in lieu of fore18 closure; 

19 (vii) short sale of the principal resi20 dence that is subject to the lien securing the 

21 loan; 

22 (viii) assumption of the obligation of 

23 the homeowner under the loan by a third 

24 party; 
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1 (ix) cancellation or postponement of a 

2 foreclosure sale to allow the homeowner ad3 ditional time to sell the property; or 

4 (x) any other loss mitigation activity 

5 not covered; and 

6 (E) such other information as the Secretary 

7 determines to be relevant. 

8 (3) PUBLIC AVAILABILITY OF REPORTS.—After 

9 removing information that would compromise the pri10 vacy interests of mortgagors, the Secretary shall make 

11 public the reports required by this subsection and 

12 summary data. 

13 SEC. 8004. AUTHORIZATION OF APPROPRIATIONS. 

14 There are authorized to be appropriated to the Sec15 retary, such sums as may be necessary to carry out this 

16 title. 

17 SEC. 8005. SUNSET OF AUTHORITY. 

18 The authority of the Secretary to provide assistance 

19 under this title shall terminate on December 31, 2011. 

Attest: 

Secretary. 
111TH CONGRESS 

1ST SESSION H. R. 1 

AMENDMENT