I 

111TH CONGRESS 

1ST SESSION H. R. 1 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 10, 2009 

Ordered to be printed with the amendment of the Senate 

[Strike out all after the enacting clause and insert the part printed in italic] 

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. 

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

3 SECTION 1. SHORT TITLE. 

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

5 and Reinvestment Act of 2009’’. 

6 SEC. 2. TABLE OF CONTENTS. 

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

DIVISION A—APPROPRIATION PROVISIONS 

TITLE I—GENERAL PROVISIONS 

TITLE II—AGRICULTURE, NUTRITION, AND RURAL DEVELOPMENT 

TITLE III—COMMERCE, JUSTICE, AND SCIENCE 

TITLE IV—DEFENSE 


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TITLE V—ENERGY AND WATER 

TITLE VI—FINANCIAL SERVICES AND GENERAL GOVERNMENT 

TITLE VII—HOMELAND SECURITY 

TITLE VIII—INTERIOR AND ENVIRONMENT 

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

TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS 

TITLE XI—DEPARTMENT OF STATE 

TITLE XII—TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT 

TITLE XIII—STATE FISCAL STABILIZATION FUND 

DIVISION B—OTHER PROVISIONS 

TITLE I—TAX PROVISIONS 

TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES 

TITLE III—HEALTH INSURANCE ASSISTANCE FOR THE UNEMPLOYED 

TITLE IV—HEALTH INFORMATION TECHNOLOGY 

TITLE V—MEDICAID PROVISIONS 

TITLE VI—BROADBAND COMMUNICATIONS 

TITLE VII—ENERGY 

1 SEC. 3. PURPOSES AND PRINCIPLES. 

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

3 this Act include the following: 

4 (1) To preserve and create jobs and promote 

5 economic recovery. 

6 (2) To assist those most impacted by the reces7 sion. 

8 (3) To provide investments needed to increase 

9 economic efficiency by spurring technological ad10 vances in science and health. 

11 (4) To invest in transportation, environmental 

12 protection, and other infrastructure that will provide 

13 long-term economic benefits. 

14 (5) To stabilize State and local government 

15 budgets, in order to minimize and avoid reductions 


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1 in essential services and counterproductive state and 

2 local tax increases. 

3 (b) GENERAL PRINCIPLES CONCERNING USE OF

4 FUNDS.—The President and the heads of Federal depart5 ments and agencies shall manage and expend the funds 

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

7 specified in subsection (a), including commencing expendi8 tures and activities as quickly as possible consistent with 

9 prudent management. 

10 SEC. 4. REFERENCES. 

11 Except as expressly provided otherwise, any reference 

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

13 be treated as referring only to the provisions of that divi14 sion. 

15 SEC. 5. EMERGENCY DESIGNATIONS. 

16 (a) IN GENERAL.—Each amount in this Act is des17 ignated as an emergency requirement and necessary to 

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

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

20 S. Con. Res. 70 (110th Congress), the concurrent resolu21 tions on the budget for fiscal years 2008 and 2009. 

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

23 this Act are designated as an emergency for purposes of 

24 pay-as-you-go principles. 


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1 DIVISION A—APPROPRIATION 

2 PROVISIONS 

3 SEC. 1001. STATEMENT OF APPROPRIATIONS. 

4 The following sums in this Act are appropriated, out 

5 of any money in the Treasury not otherwise appropriated, 

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

7 other purposes. 

8 TITLE I—GENERAL PROVISIONS 

9 Subtitle A—Use of Funds 

10 SEC. 1101. RELATIONSHIP TO OTHER APPROPRIATIONS. 

11 Each amount appropriated or made available in this 

12 Act is in addition to amounts otherwise appropriated for 

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

14 no effect on the availability of amounts under the Con15 tinuing Appropriations Resolution, 2009 (division A of 

16 Public Law 110–329). 

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

18 In using funds made available in this Act for infra19 structure investment, recipients shall give preference to 

20 activities that can be started and completed expeditiously, 

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

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

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

24 shall also use grant funds in a manner that maximizes 

25 job creation and economic benefit. 


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

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

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

4 30 days after the date of the enactment of this Act (or, 

5 in the case of appropriations not available upon enact6 ment, not later than 30 days after the appropriation be7 comes available for obligation), unless expressly provided 

8 otherwise in this Act. 

9 (b) COMPETITIVE GRANTS.—Competitive grants 

10 using funds made available in this Act shall be awarded 

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

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

13 upon enactment, not later than 90 days after the appro14 priation becomes available for obligation), unless expressly 

15 provided otherwise in this Act. 

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

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

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

19 which funding was not provided in fiscal year 2008. 

20 SEC. 1104. USE IT OR LOSE IT REQUIREMENTS FOR GRANT21 EES. 

22 (a) DEADLINE FOR BINDING COMMITMENTS.—Each 

23 recipient of a grant made using amounts made available 

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

25 enter into contracts or other binding commitments not 

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


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1 Act (or not later than 9 months after the grant is award2 ed, if later) to make use of 50 percent of the funds award3 ed, and shall enter into contracts or other binding commit4 ments not later than 2 years after the date of the enact5 ment of this Act (or not later than 21 months after the 

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

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

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

9 or other arrangements with third parties), a certification 

10 by the recipient specifying the amounts, planned timing, 

11 and purpose of such expenditures shall be deemed a bind12 ing commitment for purposes of this section. 

13 (b) REDISTRIBUTION OF UNCOMMITTED FUNDS.— 

14 The head of the Federal department or agency involved 

15 shall recover or deobligate any grant funds not committed 

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

17 funds to other recipients eligible under the grant program 

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

19 (including binding commitments within 120 days after the 

20 reallocation). 

21 (c) APPROPRIATIONS TO WHICH THIS SECTION AP22 PLIES.—This section shall apply to grants made using 

23 amounts appropriated in any of the following accounts 

24 within this Act: 


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1 (1) ‘‘Environmental Protection Agency—State 

2 and Tribal Assistance Grants’’. 

3 (2) ‘‘Department of Transportation—Federal 

4 Aviation Administration—Grants-in-Aid for Air5 ports’’. 

6 (3) ‘‘Department of Transportation—Federal 

7 Railroad Administration—Capital Assistance for 

8 Intercity Passenger Rail Service’’. 

9 (4) ‘‘Department of Transportation—Federal 

10 Transit Administration—Capital Investment 

11 Grants’’. 

12 (5) ‘‘Department of Transportation—Federal 

13 Transit Administration—Fixed Guideway Infra14 structure Investment’’. 

15 (6) ‘‘Department of Transportation—Federal 

16 Transit Administration—Transit Capital Assist17 ance’’. 

18 (7) ‘‘Department of Housing and Urban Devel19 opment—Public and Indian Housing—Public Hous20 ing Capital Fund’’. 

21 (8) ‘‘Department of Housing and Urban Devel22 opment—Public and Indian Housing—Elderly, Dis23 abled, and Section 8 Assisted Housing Energy Ret24 rofit’’. 


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1 (9) ‘‘Department of Housing and Urban Devel2 opment—Public and Indian Housing—Native Amer3 ican Housing Block Grants’’. 

4 (10) ‘‘Department of Housing and Urban De5 velopment—Community Planning and Develop6 ment—HOME Investment Partnerships Program’’. 

7 (11) ‘‘Department of Housing and Urban De8 velopment—Community Planning and Develop9 ment—Self-Help and Assisted Homeownership Op10 portunity Program’’. 

11 SEC. 1105. PERIOD OF AVAILABILITY. 

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

13 shall remain available for obligation until September 30, 

14 2010, unless expressly provided otherwise in this Act. 

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

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

17 for which originally obligated may be deobligated and, not18 withstanding the limitation on availability specified in sub19 section (a), reobligated for other activities that have re20 ceived funding from the same account or appropriation in 

21 such title. 

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

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

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

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


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1 expenses of management and oversight of the programs, 

2 grants, and activities funded by such appropriation, and 

3 may be transferred by the head of the Federal department 

4 or agency involved to any other appropriate account within 

5 the department or agency for that purpose. Funds set 

6 aside under this section shall remain available for obliga7 tion until September 30, 2012. 

8 SEC. 1107. APPROPRIATIONS FOR INSPECTORS GENERAL. 

9 In addition to funds otherwise made available in this 

10 Act, there are hereby appropriated the following sums to 

11 the specified Offices of Inspector General, to remain avail12 able until September 30, 2013, for oversight and audit of 

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

14 (1) ‘‘Department of Agriculture—Office of In15 spector General’’, $22,500,000. 

16 (2) ‘‘Department of Commerce—Office of In17 spector General’’, $10,000,000. 

18 (3) ‘‘Department of Defense—Office of the In19 spector General’’, $15,000,000. 

20 (4) ‘‘Department of Education—Departmental 

21 Management—Office of the Inspector General’’, 

22 $14,000,000. 

23 (5) ‘‘Department of Energy—Office of Inspec24 tor General’’, $15,000,000. 


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1 (6) ‘‘Department of Health and Human Serv2 ices—Office of the Secretary—Office of Inspector 

3 General’’, $19,000,000. 

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

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

6 (8) ‘‘Department of Housing and Urban Devel7 opment—Management and Administration—Office 

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

9 (9) ‘‘Department of the Interior—Office of In10 spector General’’, $15,000,000. 

11 (10) ‘‘Department of Justice—Office of Inspec12 tor General’’, $2,000,000. 

13 (11) ‘‘Department of Labor—Departmental 

14 Management—Office of Inspector General’’, 

15 $6,000,000. 

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

17 Inspector General’’, $20,000,000. 

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

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

20 (14) ‘‘Environmental Protection Agency—Office 

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

22 (15) ‘‘General Services Administration—Gen23 eral Activities—Office of Inspector General’’, 

24 $15,000,000. 


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1 (16) ‘‘National Aeronautics and Space Adminis2 tration—Office of Inspector General’’, $2,000,000. 

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

4 Inspector General’’, $2,000,000. 

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

6 Inspector General’’, $10,000,000. 

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

8 Inspector General’’, $2,000,000. 

9 (20) ‘‘Corporation for National and Community 

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

11 SEC. 1108. APPROPRIATION FOR GOVERNMENT ACCOUNT12 ABILITY OFFICE. 

13 There is hereby appropriated as an additional amount 

14 for ‘‘Government Accountability Office—Salaries and Ex15 penses’’ $25,000,000, for oversight activities relating to 

16 this Act. 

17 SEC. 1109. PROHIBITED USES. 

18 None of the funds appropriated or otherwise made 

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

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

21 swimming pool. 

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

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

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

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


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

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

3 States. 

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

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

6 agency involved finds that— 

7 (1) applying subsection (a) would be incon8 sistent with the public interest; 

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

10 United States in sufficient and reasonably available 

11 quantities and of a satisfactory quality; or 

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

13 United States will increase the cost of the overall 

14 project by more than 25 percent. 

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

16 head of a Federal department or agency determines that 

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

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

19 department or agency shall publish in the Federal Register 

20 a detailed written justification as to why the provision is 

21 being waived. 

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

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

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

25 10c) and include airports, bridges, canals, dams, dikes, 


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

2 tunnels, harbors, and piers. 

3 SEC. 1111. WAGE RATE REQUIREMENTS. 

4 Notwithstanding any other provision of law and in 

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

6 laborers and mechanics employed by contractors and sub7 contractors on projects funded directly by or assisted in 

8 whole or in part by and through the Federal Government 

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

10 than those prevailing on projects of a character similar 

11 in the locality as determined by the Secretary of Labor 

12 in accordance with subchapter IV of chapter 31 of title 

13 40, United States Code. With respect to the labor stand14 ards specified in this section, the Secretary of Labor shall 

15 have the authority and functions set forth in Reorganiza16 tion Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 

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

18 SEC. 1112. ADDITIONAL ASSURANCE OF APPROPRIATE USE 

19 OF FUNDS. 

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

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

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

23 approved in legislation enacted by the State after the date 

24 of the enactment of this Act; or (2) Rod R. Blagojevich 

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1 nois. The preceding sentence shall not apply to any funds 

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

3 Federal department or agency; or (2) by an established 

4 formula from the State. 

5 SEC. 1113. PERSISTENT POVERTY COUNTIES. 

6 (a) ALLOCATION REQUIREMENT.—Of the amount ap7 propriated in this Act for ‘‘Department of Agriculture— 

8 Rural Development Programs—Rural Community Ad9 vancement Program’’, at least 10 percent shall be allo10 cated for assistance in persistent poverty counties. 

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

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

13 has had 20 percent or more of its population living in pov14 erty over the past 30 years, as measured by the 1980, 

15 1990, and 2000 decennial censuses. 

16 SEC. 1114. REQUIRED PARTICIPATION IN E-VERIFY PRO17 GRAM. 

18 None of the funds made available in this Act may 

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

20 not participate in the E-verify program described in sec21 tion 401(b) of the Illegal Immigration Reform and Immi22 grant Responsibility Act of 1996 (8 U.S.C. 1324a note). 


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1 SEC. 1115. ADDITIONAL FUNDING DISTRIBUTION AND AS2 SURANCE OF APPROPRIATE USE OF FUNDS. 

3 (a) CERTIFICATION BY GOVERNOR.—Not later than 

4 45 days after the date of enactment of this Act, for funds 

5 provided to any State or agency thereof, the Governor of 

6 the State shall certify that the State will request and use 

7 funds provided by this Act. 

8 (b) ACCEPTANCE BY STATE LEGISLATURE.—If funds 

9 provided to any State in any division of this Act are not 

10 accepted for use by the Governor, then acceptance by the 

11 State legislature, by means of the adoption of a concurrent 

12 resolution, shall be sufficient to provide funding to such 

13 State. 

14 (c) DISTRIBUTION.—After the adoption of a State 

15 legislature’s concurrent resolution, funding to the State 

16 will be for distribution to local governments, councils of 

17 government, public entities, and public-private entities 

18 within the State either by formula or at the State’s discre19 tion. 

20 Subtitle B—Accountability in 

21 Recovery Act Spending 

22 PART 1—TRANSPARENCY AND OVERSIGHT 

23 REQUIREMENTS 

24 SEC. 1201. TRANSPARENCY REQUIREMENTS. 

25 (a) REQUIREMENTS FOR FEDERAL AGENCIES.— 

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1 ery.gov (as established under section 1226 of this sub2 title)— 

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

4 this Act to the agency; and 

5 (2) all announcements for grant competitions, 

6 allocations of formula grants, and awards of com7 petitive grants using those funds. 

8 (b) REQUIREMENTS FOR FEDERAL, STATE, AND

9 LOCAL GOVERNMENT AGENCIES.— 

10 (1) INFRASTRUCTURE INVESTMENT FUND11 ING.—With respect to funds made available under 

12 this Act for infrastructure investments to Federal, 

13 State, or local government agencies, the following re14 quirements apply: 

15 (A) Each such agency shall notify the pub16 lic of funds obligated to particular infrastruc17 ture investments by posting the notification on 

18 the website Recovery.gov. 

19 (B) The notification required by subpara20 graph (A) shall include the following: 

21 (i) A description of the infrastructure 

22 investment funded. 

23 (ii) The purpose of the infrastructure 

24 investment. 


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1 (iii) The total cost of the infrastruc2 ture investment. 

3 (iv) The rationale of the agency for 

4 funding the infrastructure investment with 

5 funds made available under this Act. 

6 (v) The name of the person to contact 

7 at the agency if there are concerns with 

8 the infrastructure investment and, with re9 spect to Federal agencies, an email address 

10 for the Federal official in the agency whom 

11 the public can contact. 

12 (vi) In the case of State or local agen13 cies, a certification from the Governor, 

14 mayor, or other chief executive, as appro15 priate, that the infrastructure investment 

16 has received the full review and vetting re17 quired by law and that the chief executive 

18 accepts responsibility that the infrastruc19 ture investment is an appropriate use of 

20 taxpayer dollars. A State or local agency 

21 may not receive infrastructure investment 

22 funding from funds made available in this 

23 Act unless this certification is made. 

24 (2) OPERATIONAL FUNDING.—With respect to 

25 funds made available under this Act in the form of 


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1 grants for operational purposes to State or local gov2 ernment agencies or other organizations, the agency 

3 or organization shall publish on the website Recov4 ery.gov a description of the intended use of the 

5 funds, including the number of jobs sustained or cre6 ated. 

7 (c) AVAILABILITY ON INTERNET OF CONTRACTS AND

8 GRANTS.—Each contract awarded or grant issued using 

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

10 Internet and linked to the website Recovery.gov. Propri11 etary data that is required to be kept confidential under 

12 applicable Federal or State law or regulation shall be re13 dacted before posting. 

14 SEC. 1202. INSPECTOR GENERAL REVIEWS. 

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

16 department or executive agency shall review, as appro17 priate, any concerns raised by the public about specific 

18 investments using funds made available in this Act. Any 

19 findings of an inspector general resulting from such a re20 view shall be relayed immediately to the head of each de21 partment and agency. In addition, the findings of such re22 views, along with any audits conducted by any inspector 

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

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


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1 (b) EXAMINATION OF RECORDS.—The Inspector 

2 General of the agency concerned may examine any records 

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

4 SEC. 1203. GOVERNMENT ACCOUNTABILITY OFFICE RE5 VIEWS AND REPORTS. 

6 (a) REVIEWS AND REPORTS.—The Comptroller Gen7 eral of the United States shall conduct bimonthly reviews 

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

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

10 Such reports, along with any audits conducted by the 

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

12 Internet and linked to the website Recovery.gov. 

13 (b) EXAMINATION OF RECORDS.—The Comptroller 

14 General may examine any records related to obligations 

15 of funds made available in this Act. 

16 SEC. 1204. COUNCIL OF ECONOMIC ADVISERS REPORTS. 

17 The Chairman of the Council of Economic Advisers, 

18 in consultation with the Director of the Office of Manage19 ment and Budget and the Secretary of the Treasury, shall 

20 submit quarterly reports to Congress detailing the esti21 mated impact of programs under this Act on employment, 

22 economic growth, and other key economic indicators. 

23 SEC. 1205. SPECIAL CONTRACTING PROVISIONS. 

24 The Federal Acquisition Regulation shall apply to 

25 contracts awarded with funds made available in this Act. 


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1 To the maximum extent possible, such contracts shall be 

2 awarded as fixed-price contracts through the use of com3 petitive procedures. Existing contracts so awarded may be 

4 utilized in order to obligate such funds expeditiously. Any 

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

6 and not awarded using competitive procedures shall be 

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

8 PART 2—ACCOUNTABILITY AND TRANSPARENCY 

9 BOARD 

10 SEC. 1221. ESTABLISHMENT OF THE ACCOUNTABILITY AND 

11 TRANSPARENCY BOARD. 

12 There is established a board to be known as the ‘‘Re13 covery Act Accountability and Transparency Board’’ 

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

15 coordinate and conduct oversight of Federal spending 

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

17 SEC. 1222. COMPOSITION OF BOARD. 

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

19 seven members as follows: 

20 (1) The Chief Performance Officer of the Presi21 dent, who shall chair the Board. 

22 (2) Six members designated by the President 

23 from the inspectors general and deputy secretaries 

24 of the Departments of Education, Energy, Health 

25 and Human Services, Transportation, and other 


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1 Federal departments and agencies to which funds 

2 are made available in this Act. 

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

4 for a term to be determined by the President. 

5 SEC. 1223. FUNCTIONS OF THE BOARD. 

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

7 conduct oversight of spending under this Act to prevent 

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

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

10 include the following: 

11 (1) Ensuring that the reporting of information 

12 regarding contract and grants under this Act meets 

13 applicable standards and specifies the purpose of the 

14 contract or grant and measures of performance. 

15 (2) Verifying that competition requirements ap16 plicable to contracts and grants under this Act and 

17 other applicable Federal law have been satisfied. 

18 (3) Investigating spending under this Act to de19 termine whether wasteful spending, poor contract or 

20 grant management, or other abuses are occurring. 

21 (4) Reviewing whether there are sufficient 

22 qualified acquisition and grant personnel overseeing 

23 spending under this Act. 

24 (5) Reviewing whether acquisition and grant 

25 personnel receive adequate training and whether 


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1 there are appropriate mechanisms for interagency 

2 collaboration. 

3 (b) REPORTS.— 

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

5 shall submit to Congress reports, to be known as 

6 ‘‘flash reports’’, on potential management and fund7 ing problems that require immediate attention. The 

8 Board also shall submit to Congress such other re9 ports as the Board considers appropriate on the use 

10 and benefits of funds made available in this Act. 

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

12 the President and Congress quarterly reports sum13 marizing its findings and the findings of agency in14 spectors general and may issue additional reports as 

15 appropriate. 

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

17 Board shall prepare a consolidated report on the use 

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

19 available and shall be posted on the Internet website 

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

21 redacted if the portions would disclose information 

22 that is protected from public disclosure under sec23 tion 552 of title 5, United States Code (popularly 

24 known as the Freedom of Information Act). 


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1 (c) RECOMMENDATIONS TO AGENCIES.—The Board 

2 shall make recommendations to Federal agencies on meas3 ures to prevent waste, fraud, and abuse. A Federal agency 

4 shall, within 30 days after receipt of any such rec5 ommendation, submit to the Board, the President, and the 

6 congressional committees of jurisdiction a report on 

7 whether the agency agrees or disagrees with the rec8 ommendations and what steps, if any, the agency plans 

9 to take to implement the recommendations. 

10 SEC. 1224. POWERS OF THE BOARD. 

11 (a) COORDINATION OF AUDITS AND INVESTIGATIONS

12 BY AGENCY INSPECTORS GENERAL.—The Board shall co13 ordinate the audits and investigations of spending under 

14 this Act by agency inspectors general. 

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

16 may conduct reviews of spending under this Act and may 

17 collaborate on such reviews with any inspector general. 

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

19 carrying out its duties under this Act, hold public meet20 ings, sit and act at times and places, and receive informa21 tion as the Board considers appropriate. The Board shall 

22 meet at least once a month. 

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

24 secure directly from any department or agency of the 

25 United States information necessary to enable it to carry 


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1 out its duties under this Act. Upon request of the Chair2 man of the Board, the head of that department or agency 

3 shall furnish that information to the Board. 

4 (e) CONTRACTS.—The Board may enter into con5 tracts to enable the Board to discharge its duties under 

6 this Act. 

7 SEC. 1225. STAFFING. 

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

9 Board may appoint and fix the compensation of an execu10 tive director and other personnel as may be required to 

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

12 be paid at the rate of basic pay for level IV of the Execu13 tive Schedule. 

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

15 of the Board, the head of any Federal department or agen16 cy may detail any Federal official or employee, including 

17 officials and employees of offices of inspector general, to 

18 the Board without reimbursement from the Board, and 

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

20 privileges of his or her regular employment without inter21 ruption. 

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

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


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1 SEC. 1226. RECOVERY.GOV. 

2 (a) REQUIREMENT TO ESTABLISH WEBSITE.—The 

3 Board shall establish and maintain a website on the Inter4 net to be named Recovery.gov, to foster greater account5 ability and transparency in the use of funds made avail6 able in this Act. 

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

8 gateway to key information related to this Act and provide 

9 a window to other Government websites with related infor10 mation. 

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

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

13 (1) The website shall provide materials explain14 ing what this Act means for citizens. The materials 

15 shall be easy to understand and regularly updated. 

16 (2) The website shall provide accountability in17 formation, including a database of findings from au18 dits, inspectors general, and the Government Ac19 countability Office. 

20 (3) The website shall provide data on relevant 

21 economic, financial, grant, and contract information 

22 in user-friendly visual presentations to enhance pub23 lic awareness of the use funds made available in this 

24 Act. 

25 (4) The website shall provide detailed data on 

26 contracts awarded by the Government for purposes 


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1 of carrying out this Act, including information about 

2 the competitiveness of the contracting process, noti3 fication of solicitations for contracts to be awarded, 

4 and information about the process that was used for 

5 the award of contracts. 

6 (5) The website shall include printable reports 

7 on funds made available in this Act obligated by 

8 month to each State and congressional district. 

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

10 public to give feedback on the performance of con11 tracts awarded for purposes of carrying out this Act. 

12 (7) The website shall be enhanced and updated 

13 as necessary to carry out the purposes of this sub14 title. 

15 (8) The website shall provide, by location, links 

16 to and information on how to access job opportuni17 ties created at or by entities receiving funding under 

18 this Act, including, if possible, links to or informa19 tion about local employment agencies; state, local 

20 and other public agencies receiving funding; and pri21 vate firms contracted to perform work funded by 

22 this Act. 


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1 SEC. 1227. PRESERVATION OF THE INDEPENDENCE OF IN2 SPECTORS GENERAL. 

3 Inspectors general shall retain independent authority 

4 to determine whether to conduct an audit or investigation 

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

6 an inspector general conduct or refrain from conducting 

7 an audit or investigation and the inspector general rejects 

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

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

10 Board, the agency head, and the congressional committees 

11 of jurisdiction a report explaining why the inspector gen12 eral has rejected the request in whole or in part. 

13 SEC. 1228. COORDINATION WITH THE COMPTROLLER GEN14 ERAL AND STATE AUDITORS. 

15 The Board shall coordinate its oversight activities 

16 with the Comptroller General of the United States and 

17 State auditor generals. 

18 SEC. 1229. INDEPENDENT ADVISORY PANEL. 

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

20 to be known as the ‘‘Independent Advisory Panel’’ to ad21 vise the Board. 

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

23 five members appointed by the President from among indi24 viduals with expertise in economics, public finance, con25 tracting, accounting, or other relevant fields. 


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1 (c) FUNCTIONS.—The Panel shall make rec2 ommendations to the Board on actions the Board could 

3 take to prevent waste, fraud, and abuse in Federal spend4 ing under this Act. 

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

6 shall receive travel expenses, including per diem in lieu 

7 of subsistence, in accordance with applicable provisions 

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

9 Code. 

10 SEC. 1230. FUNDING. 

11 There is hereby appropriated to the Board 

12 $14,000,000 to carry out this subtitle. 

13 SEC. 1231. BOARD TERMINATION. 

14 The Board shall terminate 12 months after 90 per15 cent of the funds made available under this Act have been 

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

17 Management and Budget. 

18 PART 3—ADDITIONAL ACCOUNTABILITY AND 

19 TRANSPARENCY PROVISIONS 

20 SEC. 1241. LIMITATION ON THE LENGTH OF CERTAIN NON21 COMPETITIVE CONTRACTS. 

22 No contract entered into using funds made available 

23 in this Act pursuant to the authority provided in section 

24 303(c)(2) of the Federal Property and Administrative 

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


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1 amount greater than the simplified acquisition threshold 

2 (as defined in section 4(11) of the Office of Federal Pro3 curement Policy Act (41 U.S.C. (4)(11))— 

4 (1) may exceed the time necessary— 

5 (A) to meet the unusual and compelling re6 quirements of the work to be performed under 

7 the contract; and 

8 (B) for the executive agency to enter into 

9 another contract for the required goods or serv10 ices through the use of competitive procedures; 

11 and 

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

13 executive agency entering into such contract deter14 mines that exceptional circumstances apply. 

15 SEC. 1242. ACCESS OF GOVERNMENT ACCOUNTABILITY OF16 FICE AND OFFICES OF INSPECTOR GENERAL 

17 TO CERTAIN EMPLOYEES. 

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

19 made available in this Act shall provide that the Comp20 troller General and his representatives, and any represent21 atives of an appropriate inspector general appointed under 

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

23 U.S.C. App.), are authorized— 

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

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1 cy administering such contract, that directly pertain 

2 to, and involve transactions relating to, the contract 

3 or subcontract; and 

4 (2) to interview any current employee regarding 

5 such transactions. 

6 (b) RELATIONSHIP TO EXISTING AUTHORITY.— 

7 Nothing in this section shall be interpreted to limit or re8 strict in any way any existing authority of the Comptroller 

9 General or an Inspector General. 

10 SEC. 1243. PROTECTING STATE AND LOCAL GOVERNMENT 

11 AND CONTRACTOR WHISTLEBLOWERS. 

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

13 any non-Federal employer receiving funds made available 

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

15 discriminated against as a reprisal for disclosing to the 

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

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

18 representatives, information that the employee reasonably 

19 believes is evidence of— 

20 (1) gross mismanagement of an executive agen21 cy contract or grant; 

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

23 (3) a substantial and specific danger to public 

24 health or safety; or 


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

2 agency contract (including the competition for or ne3 gotiation of a contract) or grant awarded or issued 

4 to carry out this Act. 

5 (b) INVESTIGATION OF COMPLAINTS.— 

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

7 been subjected to a reprisal prohibited by subsection 

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

9 of the executive agency that awarded the contract or 

10 issued the grant. Unless the inspector general deter11 mines that the complaint is frivolous, the inspector 

12 general shall investigate the complaint and, upon 

13 completion of such investigation, submit a report of 

14 the findings of the investigation to the person, the 

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

16 that awarded the contract or issued the grant, and 

17 the Board. 

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

19 (B), the inspector general shall make a determina20 tion that a complaint is frivolous or submit a report 

21 under paragraph (1) within 180 days after receiving 

22 the complaint. 

23 (B) If the inspector general is unable to com24 plete an investigation in time to submit a report 

25 within the 180-day period specified in subparagraph 


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1 (A) and the person submitting the complaint agrees 

2 to an extension of time, the inspector general shall 

3 submit a report under paragraph (1) within such ad4 ditional period of time as shall be agreed upon be5 tween the inspector general and the person submit6 ting the complaint. 

7 (c) REMEDY AND ENFORCEMENT AUTHORITY.— 

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

9 inspector general report pursuant to subsection (b), 

10 the head of the agency concerned shall determine 

11 whether there is sufficient basis to conclude that the 

12 non-Federal employer has subjected the complainant 

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

14 either issue an order denying relief or shall take one 

15 or more of the following actions: 

16 (A) Order the employer to take affirmative 

17 action to abate the reprisal. 

18 (B) Order the employer to reinstate the 

19 person to the position that the person held be20 fore the reprisal, together with the compensa21 tion (including back pay), employment benefits, 

22 and other terms and conditions of employment 

23 that would apply to the person in that position 

24 if the reprisal had not been taken. 


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1 (C) Order the employer to pay the com2 plainant an amount equal to the aggregate 

3 amount of all costs and expenses (including at4 torneys’ fees and expert witnesses’ fees) that 

5 were reasonably incurred by the complainant 

6 for, or in connection with, bringing the com7 plaint regarding the reprisal, as determined by 

8 the head of the agency. 

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

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

11 issued an order within 210 days after the submission 

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

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

14 not later than 30 days after the expiration of the ex15 tension of time, and there is no showing that such 

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

17 complainant shall be deemed to have exhausted all 

18 administrative remedies with respect to the com19 plaint, and the complainant may bring a de novo ac20 tion at law or equity against the employer to seek 

21 compensatory damages and other relief available 

22 under this section in the appropriate district court 

23 of the United States, which shall have jurisdiction 

24 over such an action without regard to the amount in 

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


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

2 a jury. 

3 (3) An inspector general determination and an 

4 agency head order denying relief under paragraph 

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

6 action at law or equity brought pursuant to this sub7 section. 

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

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

10 agency shall file an action for enforcement of such 

11 order in the United States district court for a dis12 trict in which the reprisal was found to have oc13 curred. In any action brought under this paragraph, 

14 the court may grant appropriate relief, including in15 junctive relief and compensatory and exemplary 

16 damages. 

17 (5) Any person adversely affected or aggrieved 

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

19 review of the order’s conformance with this sub20 section, and any regulations issued to carry out this 

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

22 circuit in which the reprisal is alleged in the order 

23 to have occurred. No petition seeking such review 

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


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1 order by the head of the agency. Review shall con2 form to chapter 7 of title 5. 

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

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

5 discrimination against an employee for a disclosure other 

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

7 or derogate from a right or remedy otherwise available to 

8 the employee. 

9 (e) DEFINITIONS.— 

10 (1) NON-FEDERAL EMPLOYER RECEIVING

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

12 employer receiving funds made available in this Act’’ 

13 means— 

14 (A) with respect to a Federal contract 

15 awarded or Federal grant issued to carry out 

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

17 may be, if the contractor or grantee is an em18 ployer; or 

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

20 State or local government has received funds 

21 made available in this Act. 

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

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

24 4 of the Office of Federal Procurement Policy Act 

25 (41 U.S.C. 403). 


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

2 ‘‘State or local government’’ means— 

3 (A) the government of each of the several 

4 States, the District of Columbia, the Common5 wealth of Puerto Rico, Guam, American Samoa, 

6 the Virgin Islands, the Northern Mariana Is7 lands, or any other territory or possession of 

8 the United States; or 

9 (B) the government of any political sub10 division of a government listed in subparagraph 

11 (A). 

12 PART 4—FURTHER ACCOUNTABILITY AND 

13 TRANSPARENCY PROVISIONS 

14 SEC. 1261. SHORT TITLE; TABLE OF CONTENTS. 

15 (a) SHORT TITLE.—This part may be cited as the 

16 ‘‘Whistleblower Protection Enhancement Act of 2009’’. 

17 (b) TABLE OF CONTENTS.—The table of contents for 

18 this part is as follows: 

PART 4—FURTHER ACCOUNTABILITY AND TRANSPARENCY PROVISIONS

Sec. 1261. Short title; table of contents. 

Sec. 1262. Clarification of disclosures covered. 

Sec. 1263. Definitional amendments. 

Sec. 1264. Rebuttable presumption. 

Sec. 1265. Nondisclosure policies, forms, and agreements. 

Sec. 1266. Exclusion of agencies by the President. 

Sec. 1267. Disciplinary action. 

Sec. 1268. Government Accountability Office study on revocation of security 

clearances. 

Sec. 1269. Alternative recourse. 

Sec. 1270. National security whistleblower rights. 

Sec. 1271. Enhancement of contractor employee whistleblower protections. 

Sec. 1272. Prohibited personnel practices affecting the Transportation Security 

Administration. 


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Sec. 1273. Clarification of whistleblower rights relating to scientific and other 

research. 

Sec. 1274. Effective date. 

1 SEC. 1262. CLARIFICATION OF DISCLOSURES COVERED. 

2 (a) IN GENERAL.—Section 2302(b)(8) of title 5, 

3 United States Code, is amended— 

4 (1) in subparagraph (A)— 

5 (A) by striking ‘‘which the employee or ap6 plicant reasonably believes evidences’’ and in7 serting ‘‘, without restriction as to time, place, 

8 form, motive, context, forum, or prior disclosure 

9 made to any person by an employee or appli10 cant, including a disclosure made in the ordi11 nary course of an employee’s duties, that the 

12 employee or applicant reasonably believes is evi13 dence of’’; and 

14 (B) in clause (i), by striking ‘‘a violation’’ 

15 and inserting ‘‘any violation’’; and 

16 (2) in subparagraph (B)— 

17 (A) by striking ‘‘which the employee or ap18 plicant reasonably believes evidences’’ and in19 serting ‘‘, without restriction as to time, place, 

20 form, motive, context, forum, or prior disclosure 

21 made to any person by an employee or appli22 cant, including a disclosure made in the ordi23 nary course of an employee’s duties, of informaVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 tion that the employee or applicant reasonably 

2 believes is evidence of’’; and 

3 (B) in clause (i), by striking ‘‘a violation’’ 

4 and inserting ‘‘any violation (other than a viola5 tion of this section)’’. 

6 (b) PROHIBITED PERSONNEL PRACTICES UNDER

7 SECTION 2302(b)(9).—Title 5, United States Code, is 

8 amended in subsections (a)(3), (b)(4)(A), and (b)(4)(B)(i) 

9 of section 1214 and in subsections (a) and (e)(1) of sec10 tion 1221 by inserting ‘‘or 2302(b)(9)(B)–(D)’’ after ‘‘sec11 tion 2302(b)(8)’’ each place it appears. 

12 SEC. 1263. DEFINITIONAL AMENDMENTS. 

13 (a) DISCLOSURE.—Section 2302(a)(2) of title 5, 

14 United States Code, is amended— 

15 (1) in subparagraph (B)(ii), by striking ‘‘and’’ 

16 at the end; 

17 (2) in subparagraph (C)(iii), by striking the pe18 riod at the end and inserting ‘‘; and’’; and 

19 (3) by adding at the end the following: 

20 ‘‘(D) ‘disclosure’ means a formal or informal 

21 communication, but does not include a communica22 tion concerning policy decisions that lawfully exer23 cise discretionary authority unless the employee or 

24 applicant providing the disclosure reasonably believes 

25 that the disclosure evidences— 


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1 ‘‘(i) any violation of any law, rule, or regu2 lation; or 

3 ‘‘(ii) gross mismanagement, a gross waste 

4 of funds, an abuse of authority, or a substantial 

5 and specific danger to public health or safety.’’. 

6 (b) CLEAR AND CONVINCING EVIDENCE.—Sections 

7 1214(b)(4)(B)(ii) and 1221(e)(2) of title 5, United States 

8 Code, are amended by adding at the end the following: 

9 ‘‘For purposes of the preceding sentence, ‘clear and con10 vincing evidence’ means evidence indicating that the mat11 ter to be proved is highly probable or reasonably certain.’’. 

12 SEC. 1264. REBUTTABLE PRESUMPTION. 

13 Section 2302(b) of title 5, United States Code, is 

14 amended by adding at the end the following: ‘‘For pur15 poses of paragraph (8), any presumption relating to the 

16 performance of a duty by an employee who has authority 

17 to take, direct others to take, recommend, or approve any 

18 personnel action may be rebutted by substantial evidence. 

19 For purposes of paragraph (8), a determination as to 

20 whether an employee or applicant reasonably believes that 

21 such employee or applicant has disclosed information that 

22 evidences any violation of law, rule, regulation, gross mis23 management, a gross waste of funds, an abuse of author24 ity, or a substantial and specific danger to public health 

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1 terested observer with knowledge of the essential facts 

2 known to or readily ascertainable by the employee or appli3 cant could reasonably conclude that the actions of the 

4 Government evidence such violations, mismanagement, 

5 waste, abuse, or danger.’’. 

6 SEC. 1265. NONDISCLOSURE POLICIES, FORMS, AND AGREE7 MENTS. 

8 (a) PERSONNEL ACTION.—Section 2302(a)(2)(A) of 

9 title 5, United States Code, is amended— 

10 (1) in clause (x), by striking ‘‘and’’ at the end; 

11 (2) by redesignating clause (xi) as clause (xii); 

12 and 

13 (3) by inserting after clause (x) the following: 

14 ‘‘(xi) the implementation or enforcement of 

15 any nondisclosure policy, form, or agreement; 

16 and’’. 

17 (b) PROHIBITED PERSONNEL PRACTICE.—Section 

18 2302(b) of title 5, United States Code, is amended— 

19 (1) in paragraph (11), by striking ‘‘or’’ at the 

20 end; 

21 (2) by redesignating paragraph (12) as para22 graph (14); and 

23 (3) by inserting after paragraph (11) the fol24 lowing: 


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1 ‘‘(12) implement or enforce any nondisclosure 

2 policy, form, or agreement, if such policy, form, or 

3 agreement does not contain the following statement: 

4 ‘These provisions are consistent with and do not su5 persede, conflict with, or otherwise alter the em6 ployee obligations, rights, or liabilities created by 

7 Executive Order No. 12958; section 7211 of title 5, 

8 United States Code (governing disclosures to Con9 gress); section 1034 of title 10, United States Code 

10 (governing disclosures to Congress by members of 

11 the military); section 2302(b)(8) of title 5, United 

12 States Code (governing disclosures of illegality, 

13 waste, fraud, abuse, or public health or safety 

14 threats); the Intelligence Identities Protection Act of 

15 1982 (50 U.S.C. 421 and following) (governing dis16 closures that could expose confidential Government 

17 agents); and the statutes which protect against dis18 closures that could compromise national security, in19 cluding sections 641, 793, 794, 798, and 952 of title 

20 18, United States Code, and section 4(b) of the Sub21 versive Activities Control Act of 1950 (50 U.S.C. 

22 783(b)). The definitions, requirements, obligations, 

23 rights, sanctions, and liabilities created by such Ex24 ecutive order and such statutory provisions are in25 corporated into this agreement and are controlling.’; 


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1 ‘‘(13) conduct, or cause to be conducted, an in2 vestigation, other than any ministerial or nondis3 cretionary factfinding activities necessary for the 

4 agency to perform its mission, of an employee or ap5 plicant for employment because of any activity pro6 tected under this section; or’’. 

7 SEC. 1266. EXCLUSION OF AGENCIES BY THE PRESIDENT. 

8 Section 2302(a)(2)(C) of title 5, United States Code, 

9 is amended by striking clause (ii) and inserting the fol10 lowing: 

11 ‘‘(ii)(I) the Federal Bureau of Investiga12 tion, the Central Intelligence Agency, the De13 fense Intelligence Agency, the National 

14 Geospatial-Intelligence Agency, or the National 

15 Security Agency; or 

16 ‘‘(II) as determined by the President, any 

17 Executive agency or unit thereof the principal 

18 function of which is the conduct of foreign in19 telligence or counterintelligence activities, if the 

20 determination (as that determination relates to 

21 a personnel action) is made before that per22 sonnel action; or’’. 

23 SEC. 1267. DISCIPLINARY ACTION. 

24 Section 1215(a)(3) of title 5, United States Code, is 

25 amended to read as follows: 


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1 ‘‘(3)(A) A final order of the Board may impose— 

2 ‘‘(i) disciplinary action consisting of removal, 

3 reduction in grade, debarment from Federal employ4 ment for a period not to exceed 5 years, suspension, 

5 or reprimand; 

6 ‘‘(ii) an assessment of a civil penalty not to ex7 ceed $1,000; or 

8 ‘‘(iii) any combination of disciplinary actions 

9 described under clause (i) and an assessment de10 scribed under clause (ii). 

11 ‘‘(B) In any case in which the Board finds that an 

12 employee has committed a prohibited personnel practice 

13 under paragraph (8) or (9) of section 2302(b), the Board 

14 shall impose disciplinary action if the Board finds that the 

15 activity protected under such paragraph (8) or (9) (as the 

16 case may be) was the primary motivating factor, unless 

17 that employee demonstrates, by a preponderance of the 

18 evidence, that the employee would have taken, failed to 

19 take, or threatened to take or fail to take the same per20 sonnel action, in the absence of such protected activity.’’. 

21 SEC. 1268. GOVERNMENT ACCOUNTABILITY OFFICE STUDY 

22 ON REVOCATION OF SECURITY CLEARANCES. 

23 (a) REQUIREMENT.—The Comptroller General shall 

24 conduct a study of security clearance revocations, taking 

25 effect after 1996, with respect to personnel that filed 


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1 claims under chapter 12 of title 5, United States Code, 

2 in connection therewith. The study shall consist of an ex3 amination of the number of such clearances revoked, the 

4 number restored, and the relationship, if any, between the 

5 resolution of claims filed under such chapter and the res6 toration of such clearances. 

7 (b) REPORT.—Not later than 270 days after the date 

8 of the enactment of this Act, the Comptroller General shall 

9 submit to the Committee on Oversight and Government 

10 Reform of the House of Representatives and the Com11 mittee on Homeland Security and Governmental Affairs 

12 of the Senate a report on the results of the study required 

13 by subsection (a). 

14 SEC. 1269. ALTERNATIVE RECOURSE. 

15 (a) IN GENERAL.—Section 1221 of title 5, United 

16 States Code, is amended by adding at the end the fol17 lowing: 

18 ‘‘(k)(1) If, in the case of an employee, former em19 ployee, or applicant for employment who seeks corrective 

20 action (or on behalf of whom corrective action is sought) 

21 from the Merit Systems Protection Board based on an al22 leged prohibited personnel practice described in section 

23 2302(b)(8) or 2302(b)(9)(B)–(D), no final order or deci24 sion is issued by the Board within 180 days after the date 

25 on which a request for such corrective action has been duly 


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1 submitted (or, in the event that a final order or decision 

2 is issued by the Board, whether within that 180-day period 

3 or thereafter, then, within 90 days after such final order 

4 or decision is issued, and so long as such employee, former 

5 employee, or applicant has not filed a petition for judicial 

6 review of such order or decision under subsection (h))— 

7 ‘‘(A) such employee, former employee, or appli8 cant may, after providing written notice to the 

9 Board, bring an action at law or equity for de novo 

10 review in the appropriate United States district 

11 court, which shall have jurisdiction over such action 

12 without regard to the amount in controversy, and 

13 which action shall, at the request of either party to 

14 such action, be tried by the court with a jury; and 

15 ‘‘(B) in any such action, the court— 

16 ‘‘(i) shall apply the standards set forth in 

17 subsection (e); and 

18 ‘‘(ii) may award any relief which the court 

19 considers appropriate, including any relief de20 scribed in subsection (g). 

21 An appeal from a final decision of a district court in an 

22 action under this paragraph may, at the election of the 

23 appellant, be taken to the Court of Appeals for the Federal 

24 Circuit (which shall have jurisdiction of such appeal), in 


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1 lieu of the United States court of appeals for the circuit 

2 embracing the district in which the action was brought. 

3 ‘‘(2) For purposes of this subsection, the term ‘appro4 priate United States district court’, as used with respect 

5 to an alleged prohibited personnel practice, means the 

6 United States district court for the district in which the 

7 prohibited personnel practice is alleged to have been com8 mitted, the judicial district in which the employment 

9 records relevant to such practice are maintained and ad10 ministered, or the judicial district in which resides the em11 ployee, former employee, or applicant for employment al12 legedly affected by such practice. 

13 ‘‘(3) This subsection applies with respect to any ap14 peal, petition, or other request for corrective action duly 

15 submitted to the Board, whether pursuant to section 

16 1214(b)(2), the preceding provisions of this section, sec17 tion 7513(d), or any otherwise applicable provisions of 

18 law, rule, or regulation.’’. 

19 (b) REVIEW OF MSPB DECISIONS.—Section 7703(b) 

20 of such title 5 is amended— 

21 (1) in the first sentence of paragraph (1), by 

22 striking ‘‘the United States Court of Appeals for the 

23 Federal Circuit’’ and inserting ‘‘the appropriate 

24 United States court of appeals’’; and 

25 (2) by adding at the end the following: 


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1 ‘‘(3) For purposes of the first sentence of paragraph 

2 (1), the term ‘appropriate United States court of appeals’ 

3 means the United States Court of Appeals for the Federal 

4 Circuit, except that in the case of a prohibited personnel 

5 practice described in section 2302(b)(8) or 

6 2302(b)(9)(B)–(D) (other than a case that, disregarding 

7 this paragraph, would otherwise be subject to paragraph 

8 (2)), such term means the United States Court of Appeals 

9 for the Federal Circuit and any United States court of 

10 appeals having jurisdiction over appeals from any United 

11 States district court which, under section 1221(k)(2), 

12 would be an appropriate United States district court for 

13 purposes of such prohibited personnel practice.’’. 

14 (c) COMPENSATORY DAMAGES.—Section 

15 1221(g)(1)(A)(ii) of such title 5 is amended by striking 

16 all after ‘‘travel expenses,’’ and inserting ‘‘any other rea17 sonable and foreseeable consequential damages, and com18 pensatory damages (including attorney’s fees, interest, 

19 reasonable expert witness fees, and costs).’’. 

20 (d) CONFORMING AMENDMENTS.— 

21 (1) Section 1221(h) of such title 5 is amended 

22 by adding at the end the following: 

23 ‘‘(3) Judicial review under this subsection shall not 

24 be available with respect to any decision or order as to 


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1 which the employee, former employee, or applicant has 

2 filed a petition for judicial review under subsection (k).’’. 

3 (2) Section 7703(c) of such title 5 is amended 

4 by striking ‘‘court.’’ and inserting ‘‘court, and in the 

5 case of a prohibited personnel practice described in 

6 section 2302(b)(8) or 2302(b)(9)(B)–(D) brought 

7 under any provision of law, rule, or regulation de8 scribed in section 1221(k)(3), the employee or appli9 cant shall have the right to de novo review in accord10 ance with section 1221(k).’’. 

11 SEC. 1270. NATIONAL SECURITY WHISTLEBLOWER RIGHTS. 

12 (a) IN GENERAL.—Chapter 23 of title 5, United 

13 States Code, is amended by inserting after section 2303 

14 the following: 

15 ‘‘§ 2303a. National security whistleblower rights 

16 ‘‘(a) PROHIBITION OF REPRISALS.— 

17 ‘‘(1) IN GENERAL.—In addition to any rights 

18 provided in section 2303 of this title, title VII of 

19 Public Law 105–272, or any other provision of law, 

20 an employee or former employee in a covered agency 

21 may not be discharged, demoted, or otherwise dis22 criminated against (including by denying, sus23 pending, or revoking a security clearance, or by oth24 erwise restricting access to classified or sensitive inVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 formation) as a reprisal for making a disclosure de2 scribed in paragraph (2). 

3 ‘‘(2) DISCLOSURES DESCRIBED.—A disclosure 

4 described in this paragraph is any disclosure of cov5 ered information which is made— 

6 ‘‘(A) by an employee or former employee in 

7 a covered agency (without restriction as to time, 

8 place, form, motive, context, or prior disclosure 

9 made to any person by an employee or former 

10 employee, including a disclosure made in the 

11 course of an employee’s duties); and 

12 ‘‘(B) to an authorized Member of Con13 gress, an authorized official of an Executive 

14 agency, or the Inspector General of the covered 

15 agency in which such employee or former em16 ployee is or was employed. 

17 ‘‘(b) INVESTIGATION OF COMPLAINTS.—An employee 

18 or former employee in a covered agency who believes that 

19 such employee or former employee has been subjected to 

20 a reprisal prohibited by subsection (a) may submit a com21 plaint to the Inspector General and the head of the cov22 ered agency. The Inspector General shall investigate the 

23 complaint and, unless the Inspector General determines 

24 that the complaint is frivolous, submit a report of the find25 ings of the investigation within 120 days to the employee 


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1 or former employee (as the case may be) and to the head 

2 of the covered agency. 

3 ‘‘(c) REMEDY.— 

4 ‘‘(1) Within 180 days of the filing of the com5 plaint, the head of the covered agency shall, taking 

6 into consideration the report of the Inspector Gen7 eral under subsection (b) (if any), determine whether 

8 the employee or former employee has been subjected 

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

10 either issue an order denying relief or shall imple11 ment corrective action to return the employee or 

12 former employee, as nearly as possible, to the posi13 tion he would have held had the reprisal not oc14 curred, including voiding any directive or order de15 nying, suspending, or revoking a security clearance 

16 or otherwise restricting access to classified or sen17 sitive information that constituted a reprisal, as well 

18 as providing back pay and related benefits, medical 

19 costs incurred, travel expenses, any other reasonable 

20 and foreseeable consequential damages, and compen21 satory damages (including attorney’s fees, interest, 

22 reasonable expert witness fees, and costs). If the 

23 head of the covered agency issues an order denying 

24 relief, he shall issue a report to the employee or 

25 former employee detailing the reasons for the denial. 


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1 ‘‘(2)(A) If the head of the covered agency, in 

2 the process of implementing corrective action under 

3 paragraph (1), voids a directive or order denying, 

4 suspending, or revoking a security clearance or oth5 erwise restricting access to classified or sensitive in6 formation that constituted a reprisal, the head of the 

7 covered agency may re-initiate procedures to issue a 

8 directive or order denying, suspending, or revoking 

9 a security clearance or otherwise restricting access 

10 to classified or sensitive information only if those re11 initiated procedures are based exclusively on national 

12 security concerns and are unrelated to the actions 

13 constituting the original reprisal. 

14 ‘‘(B) In any case in which the head of a covered 

15 agency re-initiates procedures under subparagraph 

16 (A), the head of the covered agency shall issue an 

17 unclassified report to its Inspector General and to 

18 authorized Members of Congress (with a classified 

19 annex, if necessary), detailing the circumstances of 

20 the agency’s re-initiated procedures and describing 

21 the manner in which those procedures are based ex22 clusively on national security concerns and are unre23 lated to the actions constituting the original reprisal. 

24 The head of the covered agency shall also provide 

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1 thorized Members of Congress detailing any signifi2 cant actions taken as a result of those procedures, 

3 and shall respond promptly to inquiries from author4 ized Members of Congress regarding the status of 

5 those procedures. 

6 ‘‘(3) If the head of the covered agency has not 

7 made a determination under paragraph (1) within 

8 180 days of the filing of the complaint (or he has 

9 issued an order denying relief, in whole or in part, 

10 whether within that 180-day period or thereafter, 

11 then, within 90 days after such order is issued), the 

12 employee or former employee may bring an action at 

13 law or equity for de novo review to seek any correc14 tive action described in paragraph (1) in the appro15 priate United States district court (as defined by 

16 section 1221(k)(2)), which shall have jurisdiction 

17 over such action without regard to the amount in 

18 controversy. An appeal from a final decision of a dis19 trict court in an action under this paragraph may, 

20 at the election of the appellant, be taken to the 

21 Court of Appeals for the Federal Circuit (which 

22 shall have jurisdiction of such appeal), in lieu of the 

23 United States court of appeals for the circuit em24 bracing the district in which the action was brought. 


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1 ‘‘(4) An employee or former employee adversely 

2 affected or aggrieved by an order issued under para3 graph (1), or who seeks review of any corrective ac4 tion determined under paragraph (1), may obtain ju5 dicial review of such order or determination in the 

6 United States Court of Appeals for the Federal Cir7 cuit or any United States court of appeals having ju8 risdiction over appeals from any United States dis9 trict court which, under section 1221(k)(2), would 

10 be an appropriate United States district court. No 

11 petition seeking such review may be filed more than 

12 60 days after issuance of the order or the deter13 mination to implement corrective action by the head 

14 of the agency. Review shall conform to chapter 7. 

15 ‘‘(5)(A) If, in any action for damages or relief 

16 under paragraph (3) or (4), an Executive agency 

17 moves to withhold information from discovery based 

18 on a claim that disclosure would be inimical to na19 tional security by asserting the privilege commonly 

20 referred to as the ‘state secrets privilege’, and if the 

21 assertion of such privilege prevents the employee or 

22 former employee from establishing an element in 

23 support of the employee’s or former employee’s 

24 claim, the court shall resolve the disputed issue of 

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1 ployee, provided that an Inspector General investiga2 tion under subsection (b) has resulted in substantial 

3 confirmation of that element, or those elements, of 

4 the employee’s or former employee’s claim. 

5 ‘‘(B) In any case in which an Executive agency 

6 asserts the privilege commonly referred to as the 

7 ‘state secrets privilege’, whether or not an Inspector 

8 General has conducted an investigation under sub9 section (b), the head of that agency shall, at the 

10 same time it asserts the privilege, issue a report to 

11 authorized Members of Congress, accompanied by a 

12 classified annex if necessary, describing the reasons 

13 for the assertion, explaining why the court hearing 

14 the matter does not have the ability to maintain the 

15 protection of classified information related to the as16 sertion, detailing the steps the agency has taken to 

17 arrive at a mutually agreeable settlement with the 

18 employee or former employee, setting forth the date 

19 on which the classified information at issue will be 

20 declassified, and providing all relevant information 

21 about the underlying substantive matter. 

22 ‘‘(d) APPLICABILITY TO NON-COVERED AGENCIES.— 

23 An employee or former employee in an Executive agency 

24 (or element or unit thereof) that is not a covered agency 

25 shall, for purposes of any disclosure of covered information 


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1 (as described in subsection (a)(2)) which consists in whole 

2 or in part of classified or sensitive information, be entitled 

3 to the same protections, rights, and remedies under this 

4 section as if that Executive agency (or element or unit 

5 thereof) were a covered agency. 

6 ‘‘(e) CONSTRUCTION.—Nothing in this section may 

7 be construed— 

8 ‘‘(1) to authorize the discharge of, demotion of, 

9 or discrimination against an employee or former em10 ployee for a disclosure other than a disclosure pro11 tected by subsection (a) or (d) of this section or to 

12 modify or derogate from a right or remedy otherwise 

13 available to an employee or former employee; or 

14 ‘‘(2) to preempt, modify, limit, or derogate any 

15 rights or remedies available to an employee or 

16 former employee under any other provision of law, 

17 rule, or regulation (including the Lloyd-La Follette 

18 Act). 

19 No court or administrative agency may require the ex20 haustion of any right or remedy under this section as a 

21 condition for pursuing any other right or remedy otherwise 

22 available to an employee or former employee under any 

23 other provision of law, rule, or regulation (as referred to 

24 in paragraph (2)). 

25 ‘‘(f) DEFINITIONS.—For purposes of this section— 


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1 ‘‘(1) the term ‘covered information’, as used 

2 with respect to an employee or former employee, 

3 means any information (including classified or sen4 sitive information) which the employee or former 

5 employee reasonably believes evidences— 

6 ‘‘(A) any violation of any law, rule, or reg7 ulation; or 

8 ‘‘(B) gross mismanagement, a gross waste 

9 of funds, an abuse of authority, or a substantial 

10 and specific danger to public health or safety; 

11 ‘‘(2) the term ‘covered agency’ means— 

12 ‘‘(A) the Federal Bureau of Investigation, 

13 the Office of the Director of National Intel14 ligence, the Central Intelligence Agency, the 

15 Defense Intelligence Agency, the National 

16 Geospatial-Intelligence Agency, the National Se17 curity Agency, and the National Reconnaissance 

18 Office; and 

19 ‘‘(B) any other Executive agency, or ele20 ment or unit thereof, determined by the Presi21 dent under section 2302(a)(2)(C)(ii)(II) to have 

22 as its principal function the conduct of foreign 

23 intelligence or counterintelligence activities; 

24 ‘‘(3) the term ‘authorized Member of Congress’ 

25 means— 


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1 ‘‘(A) with respect to covered information 

2 about sources and methods of the Central Intel3 ligence Agency, the Director of National Intel4 ligence, and the National Intelligence Program 

5 (as defined in section 3(6) of the National Se6 curity Act of 1947), a member of the House 

7 Permanent Select Committee on Intelligence, 

8 the Senate Select Committee on Intelligence, or 

9 any other committees of the House of Rep10 resentatives or Senate to which this type of in11 formation is customarily provided; 

12 ‘‘(B) with respect to special access pro13 grams specified in section 119 of title 10, an 

14 appropriate member of the Congressional de15 fense committees (as defined in such section); 

16 and 

17 ‘‘(C) with respect to other covered informa18 tion, a member of the House Permanent Select 

19 Committee on Intelligence, the Senate Select 

20 Committee on Intelligence, the House Com21 mittee on Oversight and Government Reform, 

22 the Senate Committee on Homeland Security 

23 and Governmental Affairs, or any other com24 mittees of the House of Representatives or the 


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1 Senate that have oversight over the program 

2 which the covered information concerns; and 

3 ‘‘(4) the term ‘authorized official of an Execu4 tive agency’ shall have such meaning as the Office 

5 of Personnel Management shall by regulation pre6 scribe, except that such term shall, with respect to 

7 any employee or former employee in an agency, in8 clude the head, the general counsel, and the ombuds9 man of such agency.’’. 

10 (b) CLERICAL AMENDMENT.—The table of sections 

11 for chapter 23 of title 5, United States Code, is amended 

12 by inserting after the item relating to section 2303 the 

13 following: 

‘‘2303a. National security whistleblower rights.’’. 

14 SEC. 1271. ENHANCEMENT OF CONTRACTOR EMPLOYEE 

15 WHISTLEBLOWER PROTECTIONS. 

16 (a) CIVILIAN AGENCY CONTRACTS.—Section 315(c) 

17 of the Federal Property and Administrative Services Act 

18 of 1949 (41 U.S.C. 265(c)) is amended— 

19 (1) in paragraph (1), by striking ‘‘If the head’’ 

20 and all that follows through ‘‘actions:’’ and inserting 

21 the following: ‘‘Not later than 180 days after sub22 mission of a complaint under subsection (b), the 

23 head of the executive agency concerned shall deter24 mine whether the contractor concerned has subjected 

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1 section (a) and shall either issue an order denying 

2 relief or shall take one or more of the following ac3 tions:’’; and 

4 (2) by redesignating paragraph (3) as para5 graph (4) and adding after paragraph (2) the fol6 lowing new paragraph (3): 

7 ‘‘(3) If the head of an executive agency has not issued 

8 an order within 180 days after the submission of a com9 plaint under subsection (b) and there is no showing that 

10 such delay is due to the bad faith of the complainant, the 

11 complainant shall be deemed to have exhausted his admin12 istrative remedies with respect to the complaint, and the 

13 complainant may bring an action at law or equity for de 

14 novo review to seek compensatory damages and other re15 lief available under this section in the appropriate district 

16 court of the United States, which shall have jurisdiction 

17 over such an action without regard to the amount in con18 troversy, and which action shall, at the request of either 

19 party to such action, be tried by the court with a jury.’’. 

20 (b) ARMED SERVICES CONTRACTS.—Section 2409(c) 

21 of title 10, United States Code, is amended— 

22 (1) in paragraph (1), by striking ‘‘If the head’’ 

23 and all that follows through ‘‘actions:’’ and inserting 

24 the following: ‘‘Not later than 180 days after sub25 mission of a complaint under subsection (b), the 


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1 head of the agency concerned shall determine wheth2 er the contractor concerned has subjected the com3 plainant to a reprisal prohibited by subsection (a) 

4 and shall either issue an order denying relief or shall 

5 take one or more of the following actions:’’; and 

6 (2) by redesignating paragraph (3) as para7 graph (4) and adding after paragraph (2) the fol8 lowing new paragraph (3): 

9 ‘‘(3) If the head of an agency has not issued an order 

10 within 180 days after the submission of a complaint under 

11 subsection (b) and there is no showing that such delay 

12 is due to the bad faith of the complainant, the complainant 

13 shall be deemed to have exhausted his administrative rem14 edies with respect to the complaint, and the complainant 

15 may bring an action at law or equity for de novo review 

16 to seek compensatory damages and other relief available 

17 under this section in the appropriate district court of the 

18 United States, which shall have jurisdiction over such an 

19 action without regard to the amount in controversy, and 

20 which action shall, at the request of either party to such 

21 action, be tried by the court with a jury.’’. 


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1 SEC. 1272. PROHIBITED PERSONNEL PRACTICES AFFECT2 ING THE TRANSPORTATION SECURITY AD3 MINISTRATION. 

4 (a) IN GENERAL.—Chapter 23 of title 5, United 

5 States Code, is amended— 

6 (1) by redesignating sections 2304 and 2305 as 

7 sections 2305 and 2306, respectively; and 

8 (2) by inserting after section 2303a (as inserted 

9 by section 1270) the following: 

10 ‘‘§ 2304. Prohibited personnel practices affecting the 

11 Transportation Security Administration 

12 ‘‘(a) IN GENERAL.—Notwithstanding any other pro13 vision of law, any individual holding or applying for a posi14 tion within the Transportation Security Administration 

15 shall be covered by— 

16 ‘‘(1) the provisions of section 2302(b)(1), (8), 

17 and (9); 

18 ‘‘(2) any provision of law implementing section 

19 2302(b)(1), (8), or (9) by providing any right or 

20 remedy available to an employee or applicant for em21 ployment in the civil service; and 

22 ‘‘(3) any rule or regulation prescribed under 

23 any provision of law referred to in paragraph (1) or 

24 (2). 

25 ‘‘(b) RULE OF CONSTRUCTION.—Nothing in this sec26 tion shall be construed to affect any rights, apart from 


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1 those described in subsection (a), to which an individual 

2 described in subsection (a) might otherwise be entitled 

3 under law. 

4 ‘‘(c) EFFECTIVE DATE.—This section shall take ef5 fect as of the date of the enactment of this section.’’. 

6 (b) CLERICAL AMENDMENT.—The table of sections 

7 for chapter 23 of title 5, United States Code, is amended 

8 by striking the items relating to sections 2304 and 2305, 

9 respectively, and by inserting the following: 

‘‘2304. Prohibited personnel practices affecting the Transportation Security Administration. 

‘‘2305. Responsibility of the Government Accountability Office. 

‘‘2306. Coordination with certain other provisions of law.’’. 

10 SEC. 1273. CLARIFICATION OF WHISTLEBLOWER RIGHTS 

11 RELATING TO SCIENTIFIC AND OTHER RE12 SEARCH. 

13 (a) IN GENERAL.—Section 2302 of title 5, United 

14 States Code, is amended by adding at the end the fol15 lowing: 

16 ‘‘(f) As used in section 2302(b)(8), the term ‘abuse 

17 of authority’ includes— 

18 ‘‘(1) any action that compromises the validity 

19 or accuracy of federally funded research or analysis; 

20 ‘‘(2) the dissemination of false or misleading 

21 scientific, medical, or technical information; 

22 ‘‘(3) any action that restricts or prevents an 

23 employee or any person performing federally funded 


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1 research or analysis from publishing in peer-reviewed 

2 journals or other scientific publications or making 

3 oral presentations at professional society meetings or 

4 other meetings of their peers; and 

5 ‘‘(4) any action that discriminates for or 

6 against any employee or applicant for employment 

7 on the basis of religion, as defined by section 

8 1273(b) of the Whistleblower Protection Enhance9 ment Act of 2009.’’. 

10 (b) DEFINITION.—As used in section 2302(f)(3) of 

11 title 5, United States Code (as amended by subsection 

12 (a)), the term ‘‘on the basis of religion’’ means— 

13 (1) prohibiting personal religious expression by 

14 Federal employees to the greatest extent possible, 

15 consistent with requirements of law and interests in 

16 workplace efficiency; 

17 (2) requiring religious participation or non-par18 ticipation as a condition of employment, or permit19 ting religious harassment; 

20 (3) failing to accommodate employees’ exercise 

21 of their religion; 

22 (4) failing to treat all employees with the same 

23 respect and consideration, regardless of their religion 

24 (or lack thereof); 


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1 (5) restricting personal religious expression by 

2 employees in the Federal workplace except where the 

3 employee’s interest in the expression is outweighed 

4 by the government’s interest in the efficient provi5 sion of public services or where the expression in6 trudes upon the legitimate rights of other employees 

7 or creates the appearance, to a reasonable observer, 

8 of an official endorsement of religion; 

9 (6) regulating employees’ personal religious ex10 pression on the basis of its content or viewpoint, or 

11 suppressing employees’ private religious speech in 

12 the workplace while leaving unregulated other pri13 vate employee speech that has a comparable effect 

14 on the efficiency of the workplace, including ideolog15 ical speech on politics and other topics; 

16 (7) failing to exercise their authority in an 

17 evenhanded and restrained manner, and with regard 

18 for the fact that Americans are used to expressions 

19 of disagreement on controversial subjects, including 

20 religious ones; 

21 (8) failing to permit an employee to engage in 

22 private religious expression in personal work areas 

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1 sion, subject to reasonable content- and viewpoint2 neutral standards and restrictions; 

3 (9) failing to permit an employee to engage in 

4 religious expression with fellow employees, to the 

5 same extent that they may engage in comparable 

6 nonreligious private expression, subject to reasonable 

7 and content-neutral standards and restrictions; 

8 (10) failing to permit an employee to engage in 

9 religious expression directed at fellow employees, and 

10 may even attempt to persuade fellow employees of 

11 the correctness of their religious views, to the same 

12 extent as those employees may engage in comparable 

13 speech not involving religion; 

14 (11) inhibiting an employee from urging a col15 league to participate or not to participate in reli16 gious activities to the same extent that, consistent 

17 with concerns of workplace efficiency, they may urge 

18 their colleagues to engage in or refrain from other 

19 personal endeavors, except that the employee must 

20 refrain from such expression when a fellow employee 

21 asks that it stop or otherwise demonstrates that it 

22 is unwelcome; 

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1 ployees (or a specific employee) not sharing the faith 

2 of the speaker; 

3 (13) preventing an employee from— 

4 (A) wearing personal religious jewelry ab5 sent special circumstances (such as safety con6 cerns) that might require a ban on all similar 

7 nonreligious jewelry; or 

8 (B) displaying religious art and literature 

9 in their personal work areas to the same extent 

10 that they may display other art and literature, 

11 so long as the viewing public would reasonably 

12 understand the religious expression to be that 

13 of the employee acting in her personal capacity, 

14 and not that of the government itself; 

15 (14) prohibiting an employee from using their 

16 private time to discuss religion with willing cowork17 ers in public spaces to the same extent as they may 

18 discuss other subjects, so long as the public would 

19 reasonably understand the religious expression to be 

20 that of the employees acting in their personal capac21 ities; 

22 (15) discriminating against an employee on the 

23 basis of their religion, religious beliefs, or views con24 cerning their religion by promoting, refusing to pro25 mote, hiring, refusing to hire, or otherwise favoring 


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1 or disfavoring, an employee or potential employee 

2 because of his or her religion, religious beliefs, or 

3 views concerning religion, or by explicitly or implic4 itly, insisting that the employee participate in reli5 gious activities as a condition of continued employ6 ment, promotion, salary increases, preferred job as7 signments, or any other incidents of employment or 

8 insisting that an employee refrain from participating 

9 in religious activities outside the workplace except 

10 pursuant to otherwise legal, neutral restrictions that 

11 apply to employees’ off-duty conduct and expression 

12 in general (such as restrictions on political activities 

13 prohibited by the Hatch Act); 

14 (16) prohibiting a supervisor’s religious expres15 sion where it is not coercive and is understood to be 

16 his or her personal view, in the same way and to the 

17 same extent as other constitutionally valued speech; 

18 (17) permitting a hostile environment, or reli19 gious harassment, in the form of religiously discrimi20 natory intimidation, or pervasive or severe religious 

21 ridicule or insult, whether by supervisors or fellow 

22 workers, as determined by its frequency or repet23 itiveness, and severity; 

24 (18) failing to accommodate an employee’s exer25 cise of their religion unless such accommodation 


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1 would impose an undue hardship on the conduct of 

2 the agency’s operations, based on real rather than 

3 speculative or hypothetical cost and without 

4 disfavoring other, nonreligious accommodations; and 

5 (19) in those cases where an agency’s work rule 

6 imposes a substantial burden on a particular em7 ployee’s exercise of religion, failing to grant the em8 ployee an exemption from that rule, absent a com9 pelling interest in denying the exemption and where 

10 there is no less restrictive means of furthering that 

11 interest. 

12 (c) RULE OF CONSTRUCTION.—Nothing in this sec13 tion shall be construed to create any new right, benefit, 

14 or trust responsibility, substantive or procedural, enforce15 able at law or equity by a party against the United States, 

16 its agencies, its officers, or any person. 

17 SEC. 1274. EFFECTIVE DATE. 

18 This part shall take effect 30 days after the date of 

19 the enactment of this Act, except as provided in the 

20 amendment made by section 1272(a)(2). 


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1 TITLE II—AGRICULTURE, NUTRI2 TION, AND RURAL DEVELOP3 MENT 

4 DEPARTMENT OF AGRICULTURE 

5 AGRICULTURE BUILDINGS AND FACILITIES AND RENTAL

6 PAYMENTS

7 For an additional amount for ‘‘Agriculture Buildings 

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

9 necessary construction, repair, and improvement activities: 

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

11 to this appropriation. 

12 AGRICULTURAL RESEARCH SERVICE

13 BUILDINGS AND FACILITIES

14 For an additional amount for ‘‘Buildings and Facili15 ties’’, $209,000,000, for work on deferred maintenance at 

16 Agricultural Research Service facilities: Provided, That 

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

18 deferred maintenance, to projects that can be completed, 

19 and to activities that can commence promptly following 

20 enactment of this Act. 

21 FARM SERVICE AGENCY

22 SALARIES AND EXPENSES

23 For an additional amount for ‘‘Salaries and Ex24 penses,’’ $245,000,000, for the purpose of maintaining 

25 and modernizing the information technology system: ProVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 vided, That section 1106 of this Act shall not apply to 

2 this appropriation. 

3 NATURAL RESOURCES CONSERVATION SERVICE

4 WATERSHED AND FLOOD PREVENTION OPERATIONS

5 For an additional amount for ‘‘Watershed and Flood 

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

7 $175,000,000 is for necessary expenses to purchase and 

8 restore floodplain easements as authorized by section 403 

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

10 (except that no more than $50,000,000 of the amount pro11 vided for the purchase of floodplain easements may be ob12 ligated for projects in any one State): Provided, That sec13 tion 1106 of this Act shall not apply to this appropriation: 

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

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

16 completed with the funds appropriated in this Act, and 

17 to activities that can commence promptly following enact18 ment of this Act. 

19 WATERSHED REHABILITATION PROGRAM

20 For an additional amount for ‘‘Watershed Rehabilita21 tion Program’’, $50,000,000, for necessary expenses to 

22 carry out rehabilitation of structural measures: Provided, 

23 That section 1106 of this Act shall not apply to this ap24 propriation: Provided further, That priority in the use of 

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


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1 funded and completed with the funds appropriated in this 

2 Act, and to activities that can commence promptly fol3 lowing enactment of this Act. 

4 RURAL DEVELOPMENT PROGRAMS

5 RURAL COMMUNITY ADVANCEMENT PROGRAM

6 (INCLUDING TRANSFERS OF FUNDS)

7 For an additional amount for gross obligations for 

8 the principal amount of direct and guaranteed loans as 

9 authorized by sections 306 and 310B and described in sec10 tions 381E(d)(1), 381E(d)(2), and 381E(d)(3) of the 

11 Consolidated Farm and Rural Development Act, to be 

12 available from the rural community advancement pro13 gram, as follows: $5,838,000,000, of which 

14 $1,102,000,000 is for rural community facilities direct 

15 loans, of which $2,000,000,000 is for business and indus16 try guaranteed loans, and of which $2,736,000,000 is for 

17 rural water and waste disposal direct loans. 

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

19 loan guarantees, and grants, including the cost of modi20 fying loans, as defined in section 502 of the Congressional 

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

22 $63,000,000 is for rural community facilities direct loans, 

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

24 grants authorized under section 306(a) of the Consoli25 dated Farm and Rural Development Act, of which 


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1 $87,000,000 is for business and industry guaranteed 

2 loans, of which $13,000,000 is for rural business enter3 prise grants authorized under section 310B of the Consoli4 dated Farm and Rural Development Act, of which 

5 $400,000,000 is for rural water and waste disposal direct 

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

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

8 Provided, That the amounts appropriated under this head9 ing shall be transferred to, and merged with, the appro10 priation for ‘‘Rural Housing Service, Rural Community 

11 Facilities Program Account’’, the appropriation for 

12 ‘‘Rural Business-Cooperative Service, Rural Business Pro13 gram Account’’, and the appropriation for ‘‘Rural Utilities 

14 Service, Rural Water and Waste Disposal Program Ac15 count’’: Provided further, That priority for awarding such 

16 funds shall be given to project applications that dem17 onstrate that, if the application is approved, all project 

18 elements will be fully funded: Provided further, That pri19 ority for awarding such funds shall be given to project ap20 plications for activities that can be completed if the re21 quested funds are provided: Provided further, That priority 

22 for awarding such funds shall be given to activities that 

23 can commence promptly following enactment of this Act. 

24 In addition to other available funds, the Secretary of 

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


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1 made available under this account for administrative costs 

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

3 under this account, which shall be transferred and merged 

4 with the appropriation for ‘‘Rural Development, Salaries 

5 and Expenses’’ and shall remain available until September 

6 30, 2012: Provided, That the authority provided in this 

7 paragraph shall apply to appropriations under this head8 ing in lieu of the provisions of section 1106 of this Act. 

9 Funds appropriated by this Act to the Rural Commu10 nity Advancement Program for rural community facilities, 

11 rural business, and rural water and waste disposal direct 

12 loans, loan guarantees and grants may be transferred 

13 among these programs: Provided, That the Committees on 

14 Appropriations of the House of Representatives and the 

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

16 any transfer. 

17 RURAL HOUSING SERVICE

18 RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

19 (INCLUDING TRANSFERS OF FUNDS)

20 For an additional amount of gross obligations for the 

21 principal amount of direct and guaranteed loans as au22 thorized by title V of the Housing Act of 1949, to be avail23 able from funds in the rural housing insurance fund, as 

24 follows: $22,129,000,000 for loans to section 502 bor25 rowers, of which $4,018,000,000 shall be for direct loans, 


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

2 guaranteed loans. 

3 For an additional amount for the cost of direct and 

4 guaranteed loans, including the cost of modifying loans, 

5 as defined in section 502 of the Congressional Budget Act 

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

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

8 $230,000,000 shall be for unsubsidized guaranteed loans. 

9 In addition to other available funds, the Secretary of 

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

11 made available under this account for administrative costs 

12 to carry out loans and loan guarantees funded under this 

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

14 projects associated with maintaining the compliance, safe15 ty, and soundness of the portfolio of loans guaranteed 

16 through the section 502 guaranteed loan program: Pro17 vided, These funds shall be transferred and merged with 

18 the appropriation for ‘‘Rural Development, Salaries and 

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

20 in this paragraph shall apply to appropriations under this 

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

22 Act. 

23 Funds appropriated by this Act to the Rural Housing 

24 Insurance Fund Program account for section 502 direct 

25 loans and unsubsidized guaranteed loans may be transVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 ferred between these programs: Provided, That the Com2 mittees on Appropriations of the House of Representatives 

3 and the Senate shall be notified at least 15 days in ad4 vance of any transfer. 

5 RURAL UTILITIES SERVICE

6 DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND

7 PROGRAM

8 (INCLUDING TRANSFERS OF FUNDS)

9 For an additional amount for the cost of broadband 

10 loans and loan guarantees, as authorized by the Rural 

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

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

13 and guaranteed loans shall be as defined in section 502 

14 of the Congressional Budget Act of 1974: Provided fur15 ther, That, notwithstanding title VI of the Rural Elec16 trification Act of 1936, this amount is available for grants, 

17 loans and loan guarantees for open access broadband in18 frastructure in any area of the United States: Provided 

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

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

21 loan guarantees shall be in a rural area without sufficient 

22 access to high speed broadband service to facilitate rural 

23 economic development, as determined by the Secretary of 

24 Agriculture: Provided further, That priority for awarding 

25 funds made available under this paragraph shall be given 


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1 to projects that provide service to the most rural residents 

2 that do not have access to broadband service: Provided fur3 ther, That priority shall be given for project applications 

4 from borrowers or former borrowers under title II of the 

5 Rural Electrification Act of 1936 and for project applica6 tions that include such borrowers or former borrowers: 

7 Provided further, That notwithstanding section 1103 of 

8 this Act, 50 percent of the grants, loans, and loan guaran9 tees made available under this heading shall be awarded 

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

11 priority for awarding such funds shall be given to project 

12 applications that demonstrate that, if the application is 

13 approved, all project elements will be fully funded: Pro14 vided further, That priority for awarding such funds shall 

15 be given to project applications for activities that can be 

16 completed if the requested funds are provided: Provided 

17 further, That priority for awarding such funds shall be 

18 given to activities that can commence promptly following 

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

20 a project funded with amounts made available under this 

21 paragraph may receive funding to provide broadband serv22 ice under the Broadband Deployment Grant Program: 

23 Provided further, That the Secretary shall submit a report 

24 on planned spending and actual obligations describing the 

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


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1 of enactment of this Act, and quarterly thereafter until 

2 all funds are obligated, to the Committees on Appropria3 tions of the House of Representatives and the Senate. 

4 In addition to other available funds, the Secretary 

5 may use not more than 3 percent of the funds made avail6 able under this account for administrative costs to carry 

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

8 account, which shall be transferred and merged with the 

9 appropriation for ‘‘Rural Development, Salaries and Ex10 penses’’ and shall remain available until September 30, 

11 2012: Provided, That the authority provided in this para12 graph shall apply to appropriations under this heading in 

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

14 FOOD AND NUTRITION SERVICE

15 SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR

16 WOMEN, INFANTS, AND CHILDREN (WIC)

17 For an additional amount for the special supple18 mental nutrition program as authorized by section 17 of 

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

20 $100,000,000, for the purposes specified in section 

21 17(h)(10)(B)(ii) for the Secretary of Agriculture to pro22 vide assistance to State agencies to implement new man23 agement information systems or improve existing manage24 ment information systems for the program. 


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1 EMERGENCY FOOD ASSISTANCE PROGRAM

2 For an additional amount for the emergency food as3 sistance program as authorized by section 27(a) of the 

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

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

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

7 $100,000,000 is for the purchase of commodities and of 

8 which $50,000,000 is for costs associated with the dis9 tribution of commodities. 

10 GENERAL PROVISIONS, THIS TITLE 

11 SEC. 2001. TEMPORARY INCREASE IN BENEFITS UNDER 

12 THE SUPPLEMENTAL NUTRITION ASSIST13 ANCE PROGRAM. 

14 (a) MAXIMUM BENEFIT INCREASE.— 

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

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

17 enactment of this Act, the value of benefits deter18 mined under section 8(a) of the Food and Nutrition 

19 Act of 2008 and consolidated block grants for Puer20 to Rico and American Samoa determined under sec21 tion 19(a) of such Act shall be calculated using 

22 113.6 percent of the June 2008 value of the thrifty 

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

24 Act. 

25 (2) TERMINATION.— 


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1 (A) The authority provided by this sub2 section shall terminate after September 30, 

3 2009. 

4 (B) Notwithstanding subparagraph (A), 

5 the Secretary of Agriculture may not reduce the 

6 value of the maximum allotment below the level 

7 in effect for fiscal year 2009 as a result of 

8 paragraph (1). 

9 (b) REQUIREMENTS FOR THE SECRETARY.—In car10 rying out this section, the Secretary shall— 

11 (1) consider the benefit increases described in 

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

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

14 households of the increase in benefits; 

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

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

17 to apply to any errors in the implementation of this 

18 section, without regard to the 120-day limit de19 scribed in that section; and 

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

21 necessary to ensure the efficient administration of 

22 the benefits provided in this section. 

23 (c) ADMINISTRATIVE EXPENSES.— 

24 (1) IN GENERAL.—For the costs of State ad25 ministrative expenses associated with carrying out 


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1 this section, the Secretary shall make available 

2 $150,000,000 in each of fiscal years 2009 and 2010, 

3 to remain available through September 30, 2012, of 

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

5 Food and Nutrition Service for management and 

6 oversight of the program and for monitoring the in7 tegrity and evaluating the effects of the payments 

8 made under this section. 

9 (2) AVAILABILITY OF FUNDS.—Funds described 

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

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

12 households that participate in the Supplemental Nu13 trition Assistance Program as reported to the De14 partment of Agriculture for the 12-month period 

15 ending with June, 2008. 

16 (d) TREATMENT OF JOBLESS WORKERS.—Beginning 

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

18 after the date of enactment of this Act, and for each sub19 sequent month through September 30, 2010, jobless 

20 adults who comply with work registration and employment 

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

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

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

24 the Supplemental Nutrition Assistance Program because 

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


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1 2015(o)(2)). Beginning on October 1, 2010, for the pur2 poses of section 6(o), a State agency shall disregard any 

3 period during which an individual received Supplemental 

4 Nutrition Assistance Program benefits prior to October 1, 

5 2010. 

6 (e) FUNDING.—There is appropriated to the Sec7 retary of Agriculture such sums as are necessary to carry 

8 out this section, to remain available until expended. Sec9 tion 1106 of this Act shall not apply to this appropriation. 

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

11 CHILDREN. 

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

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

14 striking paragraph (5). 

15 TITLE III—COMMERCE, JUSTICE, 

16 AND SCIENCE 

17 Subtitle A—Commerce 

18 DEPARTMENT OF COMMERCE 

19 ECONOMIC DEVELOPMENT ADMINISTRATION

20 ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

21 (INCLUDING TRANSFER OF FUNDS) 

22 For an additional amount for ‘‘Economic Develop23 ment Assistance Programs’’, $250,000,000: Provided, 

24 That the amount set aside from this appropriation pursu25 ant to section 1106 of this Act shall not exceed 2 percent 


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1 instead of the percentage specified in such section: Pro2 vided further, That the amount set aside pursuant to the 

3 previous proviso shall be transferred to and merged with 

4 the appropriation for ‘‘Salaries and Expenses’’ for pur5 poses of program administration and oversight: Provided 

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

7 federally authorized regional economic development com8 missions. 

9 BUREAU OF THE CENSUS

10 PERIODIC CENSUSES AND PROGRAMS

11 For an additional amount for ‘‘Periodic Censuses and 

12 Programs’’, $1,000,000,000: Provided, That section 1106 

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

14 heading. 

15 NATIONAL TELECOMMUNICATIONS AND INFORMATION

16 ADMINISTRATION

17 SALARIES AND EXPENSES

18 For an additional amount for ‘‘Salaries and Ex19 penses’’, $350,000,000, to remain available until Sep20 tember 30, 2011: Provided, That funds shall be available 

21 to establish the State Broadband Data and Development 

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

23 for the development and implementation of statewide ini24 tiatives to identify and track the availability and adoption 

25 of broadband services within each State, and to develop 


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1 and maintain a nationwide broadband inventory map, as 

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

3 WIRELESS AND BROADBAND DEPLOYMENT GRANT

4 PROGRAMS

5 (INCLUDING TRANSFER OF FUNDS)

6 For necessary expenses related to the Wireless and 

7 Broadband Deployment Grant Programs established by 

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

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

10 Grants and $1,825,000,000 shall be for Broadband De11 ployment Grants: Provided, That the National Tele12 communications and Information Administration shall 

13 submit a report on planned spending and actual obliga14 tions describing the use of these funds not later than 120 

15 days after the date of enactment of this Act, and an up16 date report not later than 60 days following the initial re17 port, to the Committees on Appropriations of the House 

18 of Representatives and the Senate, the Committee on En19 ergy and Commerce of the House of Representatives, and 

20 the Committee on Commerce, Science, and Transportation 

21 of the Senate: Provided further, That notwithstanding sec22 tion 1103 of this Act, 50 percent of the grants made avail23 able under this heading shall be awarded not later than 

24 September 30, 2009: Provided further, That up to 20 per25 cent of the funds provided under this heading for Wireless 


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1 Deployment Grants and Broadband Deployment Grants 

2 may be transferred between these programs: Provided fur3 ther, That the Committees on Appropriations of the House 

4 of Representatives and the Senate shall be notified at least 

5 15 days in advance of any transfer. 

6 DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM

7 Notwithstanding any other provision of law, and in 

8 addition to amounts otherwise provided in any other Act, 

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

10 Box Program, $650,000,000, to be available until Sep11 tember 30, 2009: Provided, That these funds shall be 

12 available for coupons and related activities, including but 

13 not limited to education, consumer support and outreach, 

14 as deemed appropriate and necessary to ensure a timely 

15 conversion of analog to digital television. 

16 NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

17 SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES

18 For an additional amount for ‘‘Scientific and Tech19 nical Research and Services’’, $100,000,000. 

20 INDUSTRIAL TECHNOLOGY SERVICES

21 For an additional amount for ‘‘Industrial Technology 

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

23 available for the necessary expenses of the Technology In24 novation Program and $30,000,000 shall be available for 


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1 the necessary expenses of the Hollings Manufacturing Ex2 tension Partnership. 

3 CONSTRUCTION OF RESEARCH FACILITIES

4 For an additional amount for ‘‘Construction of Re5 search Facilities’’, as authorized by sections 13 through 

6 15 of the Act of March 13, 1901 (15 U.S.C. 278c–278e), 

7 $300,000,000, for a competitive construction grant pro8 gram for research science buildings: Provided further, 

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

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

11 shall be 120 days. 

12 NATIONAL OCEANIC AND ATMOSPHERIC

13 ADMINISTRATION

14 OPERATIONS, RESEARCH, AND FACILITIES

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

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

17 mitigation activities. 

18 PROCUREMENT, ACQUISITION AND CONSTRUCTION

19 For an additional amount for ‘‘Procurement, Acquisi20 tion and Construction’’, $600,000,000, for accelerating 

21 satellite development and acquisition, acquiring climate 

22 sensors and climate modeling capacity, and establishing 

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

24 $140,000,000 shall be available for climate data modeling. 


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1 Subtitle B—Justice 

2 DEPARTMENT OF JUSTICE 

3 STATE AND LOCAL LAW ENFORCEMENT ACTIVITIES

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’’, $3,000,000,000, to be available 

8 for the Edward Byrne Memorial Justice Assistance Grant 

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

10 of the Omnibus Crime Control and Safe Streets Act of 

11 1968, (except that section 1001(c), and the special rules 

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

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

14 1106 of this Act shall not apply to funds provided under 

15 this heading. 

16 COMMUNITY ORIENTED POLICING SERVICES

17 For an additional amount for ‘‘Community Oriented 

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

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

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

21 career law enforcement officers under part Q of such title 

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

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

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

25 shall be 120 days. 


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1

2 GENERAL PROVISIONS, THIS SUBTITLE 

3 SEC. 3201. WAIVER OF MATCHING REQUIREMENT AND SAL4 ARY LIMIT UNDER COPS PROGRAM. 

5 Sections 1701(g) and 1704(c) of the Omnibus Crime 

6 Control and Safe Street Act of 1968 (42 U.S.C. 

7 3796dd(g) and 3796dd–3(c)) shall not apply with respect 

8 to funds appropriated in this or any other Act making ap9 propriations for fiscal year 2009 or 2010 for Community 

10 Oriented Policing Services authorized under part Q of 

11 such Act of 1968. 

12 Subtitle C—Science 

13 NATIONAL AERONAUTICS AND SPACE 

14 ADMINISTRATION 

15 SCIENCE

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

17 $400,000,000, of which not less than $250,000,000 shall 

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

19 of Earth science climate research missions recommended 

20 by the National Academies Decadal Survey. 

21 AERONAUTICS

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

23 $150,000,000. 


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1 CROSS AGENCY SUPPORT PROGRAMS

2 For an additional amount for ‘‘Cross Agency Support 

3 Programs’’, for necessary expenses for restoration and 

4 mitigation of National Aeronautics and Space Administra5 tion owned infrastructure and facilities related to the con6 sequences of hurricanes, floods, and other natural disas7 ters occurring during 2008 for which the President de8 clared a major disaster under title IV of the Robert T. 

9 Stafford Disaster Relief and Emergency Assistance Act of 

10 1974, $50,000,000. 

11 NATIONAL SCIENCE FOUNDATION 

12 RESEARCH AND RELATED ACTIVITIES

13 For an additional amount for ‘‘Research and Related 

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

15 shall be available solely for the Major Research Instru16 mentation program and $200,000,000 shall be for activi17 ties authorized by title II of Public Law 100–570 for aca18 demic research facilities modernization: Provided, That for 

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

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

21 120 days. 

22 EDUCATION AND HUMAN RESOURCES

23 For an additional amount for ‘‘Education and 

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

25 $60,000,000 shall be for activities authorized by section 


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1 7030 of Public Law 110–69 and $40,000,000 shall be for 

2 activities authorized by section 9 of the National Science 

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

4 MAJOR RESEARCH EQUIPMENT AND FACILITIES

5 CONSTRUCTION

6 For an additional amount for ‘‘Major Research 

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

8 which shall be available only for approved projects. 

9 TITLE IV—DEFENSE 

10 DEPARTMENT OF DEFENSE 

11 FACILITY INFRASTRUCTURE INVESTMENTS, DEFENSE

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

13 repair and modernize Department of Defense facilities, re14 store and modernize Army barracks, and invest in the en15 ergy efficiency of Department of Defense facilities, 

16 $4,500,000,000, for Facilities Sustainment, Restoration 

17 and Modernization programs of the Department of De18 fense (including minor construction and major mainte19 nance and repair), which shall be available as follows: 

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

21 $1,490,804,000. 

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

23 $624,380,000. 

24 (3) ‘‘Operation and Maintenance, Marine 

25 Corps’’, $128,499,000. 


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

2 $1,236,810,000. 

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

4 (6) ‘‘Operation and Maintenance, Army Re5 serve’’, $110,899,000. 

6 (7) ‘‘Operation and Maintenance, Navy Re7 serve’’, $62,162,000. 

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

9 Reserve’’, $45,038,000. 

10 (9) ‘‘Operation and Maintenance, Air Force Re11 serve’’, $14,881,000. 

12 (10) ‘‘Operation and Maintenance, Army Na13 tional Guard’’, $302,700,000. 

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

15 Guard’’, $29,169,000. 

16 ENERGY RESEARCH AND DEVELOPMENT, DEFENSE

17 For expenses, not otherwise provided for, for re18 search, development, test and evaluation programs for im19 provements in energy generation, transmission, regulation, 

20 use, and storage, for military installations, military vehi21 cles, and other military equipment, $350,000,000, which 

22 shall be available as follows: 

23 (1) ‘‘Research, Development, Test and Evalua24 tion, Army’’, $87,500,000. 


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1 (2) ‘‘Research, Development, Test and Evalua2 tion, Navy’’, $87,500,000. 

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

5 (4) ‘‘Research, Development, Test and Evalua6 tion, Defense-Wide’’, $87,500,000 

7 TITLE V—ENERGY AND WATER 

8 DEPARTMENT OF THE ARMY 

9 CORPS OF ENGINEERS—CIVIL

10 CONSTRUCTION

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

12 $2,000,000,000: Provided, That section 102 of Public 

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

14 provided in this paragraph: Provided further, That not15 withstanding any other provision of law, funds provided 

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

17 Waterways Trust Fund as authorized in Public Law 99– 

18 662: Provided further, That funds provided in this para19 graph may only be used for programs, projects or activities 

20 previously funded: Provided further, That the Corps of En21 gineers is directed to prioritize funding for activities based 

22 on the ability to accelerate existing contracts or fully fund 

23 project elements and contracts for such elements in a time 

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

25 giving preference to projects and activities that are labor 


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1 intensive: Provided further, That funds provided in this 

2 paragraph shall be used for elements of projects, programs 

3 or activities that can be completed using funds provided 

4 herein: Provided further, That funds appropriated in this 

5 paragraph may be used by the Secretary of the Army, act6 ing through the Chief of Engineers, to undertake work au7 thorized to be carried out in accordance with one or more 

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

9 701r), section 205 of the Flood Control Act of 1948 (33 

10 U.S.C. 701s), section 206 of the Water Resources Devel11 opment Act of 1996 (33 U.S.C. 2330), and section 1135 

12 of the Water Resources Development Act of 1986 (33 

13 U.S.C. 2309a), notwithstanding the program cost limita14 tions set forth in those sections: Provided further, That 

15 the limitation concerning total project costs in section 902 

16 of the Water Resources Development Act of 1986, as 

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

18 year 2009 to any project that received funds provided in 

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

20 being completed with funds appropriated in this Act that 

21 are otherwise expired or lapsed for obligation, expired or 

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

23 the cost of associated supervision, inspection, overhead, 

24 engineering and design on those projects and on subse25 quent claims, if any: Provided further, That the Secretary 


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1 of the Army shall submit a quarterly report to the Com2 mittees on Appropriations of the House of Representatives 

3 and the Senate detailing the allocation, obligation and ex4 penditures of these funds, beginning not later than 45 

5 days after enactment of this Act. 

6 MISSISSIPPI RIVER AND TRIBUTARIES

7 For an additional amount for ‘‘Mississippi River and 

8 Tributaries’’, $250,000,000: Provided, That funds pro9 vided in this paragraph may only be used for programs, 

10 projects, or activities previously funded: Provided further, 

11 That the Corps of Engineers is directed to prioritize fund12 ing for activities based on the ability to accelerate existing 

13 contracts or fully fund project elements and contracts for 

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

15 of enactment of this Act giving preference to projects and 

16 activities that are labor intensive: Provided further, That 

17 funds provided in this paragraph shall be used for ele18 ments of projects, programs, or activities that can be com19 pleted using funds provided herein: Provided further, That 

20 for projects that are being completed with funds appro21 priated in this Act that are otherwise expired or lapsed 

22 for obligation, expired or lapsed funds appropriated in this 

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

24 inspection, overhead, engineering and design on those 

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1 ther, That the Secretary of the Army shall submit a quar2 terly report to the Committees on Appropriations of the 

3 House of Representatives and the Senate detailing the al4 location, obligation and expenditures of these funds, begin5 ning not later than 45 days after enactment of this Act. 

6 OPERATION AND MAINTENANCE

7 For an additional amount for ‘‘Operation and Main8 tenance’’, $2,225,000,000: Provided, That the Corps of 

9 Engineers is directed to prioritize funding for activities 

10 based on the ability to accelerate existing contracts or fully 

11 fund project elements and contracts for such elements in 

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

13 this Act giving preference to projects and activities that 

14 are labor intensive: Provided further, That funds provided 

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

16 programs, or activities that can be completed using funds 

17 provided herein: Provided further, That for projects that 

18 are being completed with funds appropriated in this Act 

19 that are otherwise expired or lapsed for obligation, expired 

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

21 pay the cost of associated supervision, inspection, over22 head, engineering and design on those projects and on 

23 subsequent claims, if any: Provided further, That the Sec24 retary of the Army shall submit a quarterly report to the 

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1 atives and the Senate detailing the allocation, obligation 

2 and expenditures of these funds, beginning not later than 

3 45 days after enactment of this Act. 

4 REGULATORY PROGRAM

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

6 $25,000,000. 

7 DEPARTMENT OF THE INTERIOR 

8 BUREAU OF RECLAMATION

9 WATER AND RELATED RESOURCES

10 For an additional amount for ‘‘Water and Related 

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

12 appropriated under this heading, not less than 

13 $126,000,000 shall be used for water reclamation and 

14 reuse projects authorized under title XVI of Public Law 

15 102–575: Provided further, That of the amount appro16 priated under this heading, not less than $80,000,000 

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

18 be expended primarily on water intake and treatment fa19 cilities of such projects: Provided further, That the costs 

20 of reimbursable activities, other than for maintenance and 

21 rehabilitation, carried out with funds made available under 

22 this heading shall be repaid pursuant to existing authori23 ties and agreements: Provided further, That the costs of 

24 maintenance and rehabilitation activities carried out with 

25 funds provided in this Act shall be repaid pursuant to exVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 isting authority, except the length of repayment period 

2 shall be determined on needs-based criteria to be estab3 lished and adopted by the Commissioner of the Bureau 

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

5 exceed 25 years. 

6 DEPARTMENT OF ENERGY 

7 ENERGY PROGRAMS 

8 ENERGY EFFICIENCY AND RENEWABLE ENERGY

9 For an additional amount for ‘‘Energy Efficiency and 

10 Renewable Energy’’, $18,500,000,000, which shall be used 

11 as follows: 

12 (1) $2,000,000,000 shall be for expenses nec13 essary for energy efficiency and renewable energy re14 search, development, demonstration and deployment 

15 activities, to accelerate the development of tech16 nologies, to include advanced batteries, of which not 

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

18 $400,000,000 is for geothermal technologies. 

19 (2) $500,000,000 shall be for expenses nec20 essary to implement the programs authorized under 

21 part E of title III of the Energy Policy and Con22 servation Act (42 U.S.C. 6341 et seq.). 

23 (3) $1,000,000,000 shall be for the cost of 

24 grants to institutional entities for energy sustain25 ability and efficiency under section 399A of the EnVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00096 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 ergy Policy and Conservation Act (42 U.S.C. 

2 6371h–1). 

3 (4) $6,200,000,000 shall be for the Weatheriza4 tion Assistance Program under part A of title IV of 

5 the Energy Conservation and Production Act (42 

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

7 (5) $3,500,000,000 shall be for Energy Effi8 ciency and Conservation Block Grants, for imple9 mentation of programs authorized under subtitle E 

10 of title V of the Energy Independence and Security 

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

12 (6) $3,400,000,000 shall be for the State En13 ergy Program authorized under part D of title III 

14 of the Energy Policy and Conservation Act (42 

15 U.S.C. 6321). 

16 (7) $200,000,000 shall be for expenses nec17 essary to implement the programs authorized under 

18 section 131 of the Energy Independence and Secu19 rity Act of 2007 (42 U.S.C. 17011). 

20 (8) $300,000,000 shall be for expenses nec21 essary to implement the program authorized under 

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

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

24 (9) $400,000,000 shall be for expenses nec25 essary to implement the program authorized under 


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

2 U.S.C. 16071). 

3 (10) $1,000,000,000 shall be for expenses nec4 essary for the manufacturing of advanced batteries 

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

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

7 17013(b)(1)(B)): 

8 Provided, That notwithstanding section 3304 of title 5, 

9 United States Code, and without regard to the provisions 

10 of sections 3309 through 3318 of such title 5, the Sec11 retary of Energy may, upon a determination that there 

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

13 for particular positions, recruit and directly appoint highly 

14 qualified individuals into the competitive service: Provided 

15 further, That such authority shall not apply to positions 

16 in the Excepted Service or the Senior Executive Service: 

17 Provided further, That any action authorized herein shall 

18 be consistent with the merit principles of section 2301 of 

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

20 public notice requirements of section 3327 of such title 

21 5. 

22 ELECTRICITY DELIVERY AND ENERGY RELIABILITY

23 For an additional amount for ‘‘Electricity Delivery 

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

25 funds shall be available for expenses necessary for elecVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00098 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 tricity delivery and energy reliability activities to mod2 ernize the electric grid, enhance security and reliability of 

3 the energy infrastructure, energy storage research, devel4 opment, demonstration and deployment, and facilitate re5 covery from disruptions to the energy supply, and for im6 plementation of programs authorized under title XIII of 

7 the Energy Independence and Security Act of 2007 (42 

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

9 amounts, $100,000,000 shall be for worker training: Pro10 vided further, That the Secretary of Energy may use or 

11 transfer amounts provided under this heading to carry out 

12 new authority for transmission improvements, if such au13 thority is enacted in any subsequent Act, consistent with 

14 existing fiscal management practices and procedures. 

15 ADVANCED BATTERY LOAN GUARANTEE PROGRAM

16 For the cost of guaranteed loans as authorized by 

17 section 135 of the Energy Independence and Security Act 

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

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

20 $10,000,000 shall be used for administrative expenses in 

21 carrying out the guaranteed loan program, and shall be 

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

23 Act: Provided further, That the cost of such loans, includ24 ing the cost of modifying such loans, shall be as defined 

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


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1 INSTITUTIONAL LOAN GUARANTEE PROGRAM

2 For the cost of guaranteed loans as authorized by 

3 section 399A of the Energy Policy and Conservation Act 

4 (42 U.S.C. 6371h–1), $500,000,000: Provided, That of 

5 such amount, $10,000,000 shall be used for administra6 tive expenses in carrying out the guaranteed loan pro7 gram, and shall be in lieu of the amount set aside under 

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

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

10 shall be as defined in section 502 of the Congressional 

11 Budget Act of 1974. 

12 INNOVATIVE TECHNOLOGY LOAN GUARANTEE PROGRAM

13 For an additional amount for ‘‘Innovative Technology 

14 Loan Guarantee Program’’ for the cost of guaranteed 

15 loans authorized by section 1705 of the Energy Policy Act 

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

17 $25,000,000 shall be used for administrative expenses in 

18 carrying out the guaranteed loan program, and shall be 

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

20 Act: Provided further, That the cost of such loans, includ21 ing the cost of modifying such loans, shall be as defined 

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

23 FOSSIL ENERGY

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

25 $2,400,000,000 for necessary expenses to demonstrate 


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1 carbon capture and sequestration technologies as author2 ized under section 702 of the Energy Independence and 

3 Security Act of 2007. 

4 SCIENCE

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

6 $2,000,000,000: Provided, That of such amounts, not less 

7 than $400,000,000 shall be used for the Advanced Re8 search Projects Agency—Energy authorized under section 

9 5012 of the America COMPETES Act (42 U.S.C. 16538): 

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

11 $100,000,000 shall be used for advanced scientific com12 puting. 

13 ENVIRONMENTAL AND OTHER DEFENSE 

14 ACTIVITIES 

15 DEFENSE ENVIRONMENTAL CLEANUP

16 For an additional amount for ‘‘Defense Environ17 mental Cleanup,’’ $500,000,000: Provided, That such 

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

19 or activities that can be completed using funds provided 

20 herein. 

21 GENERAL PROVISIONS, THIS TITLE 

22 SEC. 5001. WESTERN AREA POWER ADMINISTRATION BOR23 ROWING AUTHORITY. 

24 The Hoover Power Plant Act of 1984 (Public Law 

25 98–381) is amended by adding at the 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 

8 Area 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 limitation, 

19 loan to the Western Area Power Administra20 tion, on such terms as may be fixed by the Ad21 ministrator 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 1 time) as, in the judgVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00102 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 ment of the Administrator, are from time to 

2 time required for the purpose of— 

3 ‘‘(i) constructing, financing, facili4 tating, or studying construction of new or 

5 upgraded electric power transmission lines 

6 and related facilities with at least 1 ter7 minus within the area served by the West8 ern Area Power Administration; and 

9 ‘‘(ii) delivering or facilitating the de10 livery of power generated by renewable en11 ergy resources constructed or reasonably 

12 expected to be constructed after the date 

13 of enactment of this section. 

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

15 charged in connection with any loan made pursuant 

16 to this subsection shall be fixed by the Secretary, 

17 taking into consideration market yields on out18 standing marketable obligations of the United States 

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

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

21 Administration may refinance loans taken pursuant 

22 to this section within the Treasury. 

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

24 permit other entities to participate in projects fi25 nanced under this section. 


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1 ‘‘(5) CONGRESSIONAL REVIEW OF DISBURSE2 MENT.—Effective upon the date of enactment of this 

3 section, the Administrator shall have the authority 

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

5 the Administrator seeks to borrow funds above 

6 $1,750,000,000, the funds will be disbursed unless 

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

8 such request, a joint resolution that rescinds the re9 mainder of the balance of the borrowing authority 

10 provided in this section. 

11 ‘‘(c) TRANSMISSION LINE AND RELATED FACILITY

12 PROJECTS.— 

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

14 each transmission line and related facility project in 

15 which the Western Area Power Administration par16 ticipates pursuant to this section shall be treated as 

17 separate and distinct from— 

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

19 ‘‘(B) all other Western Area Power Admin20 istration power and transmission facilities. 

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

22 Administration shall apply the proceeds from the use 

23 of the transmission capacity from an individual 

24 project under this section to the repayment of the 

25 principal and interest of the loan from the Treasury 


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1 attributable to that project, after reserving such 

2 funds as the Western Area Power Administration 

3 determines are necessary— 

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

5 are provided; and 

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

7 maintaining the new project from which the 

8 revenues are derived. 

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

10 use of projects under this section shall be the only 

11 source of revenue for— 

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

13 the project; and 

14 ‘‘(B) payment of expenses for ancillary 

15 services and operation and maintenance. 

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

17 this section confers on the Administrator any obliga18 tion to provide ancillary services to users of trans19 mission facilities developed under this section. 

20 ‘‘(d) CERTIFICATION.— 

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

22 the Western Area Power Administration participates 

23 pursuant to this section, the Administrator shall cer24 tify, prior to committing funds for any such project, 

25 that— 


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

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

3 system reliability or operations, or other statu4 tory obligations; and 

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

6 proceeds from the project shall be adequate to 

7 make repayment of the loan. 

8 ‘‘(2) FORGIVENESS OF BALANCES.— 

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

10 useful life of a project, there is a remaining bal11 ance owed to the Treasury under this section, 

12 the balance shall be forgiven. 

13 ‘‘(B) UNCONSTRUCTED PROJECTS.—Funds 

14 expended to study projects that are considered 

15 pursuant to this section but that are not con16 structed shall be forgiven. 

17 ‘‘(C) NOTIFICATION.—The Administrator 

18 shall notify the Secretary of such amounts as 

19 are to be forgiven under this paragraph. 

20 ‘‘(e) PUBLIC PROCESSES.— 

21 ‘‘(1) POLICIES AND PRACTICES.—Prior to re22 questing any loans under this section, the Adminis23 trator shall use a public process to develop practices 

24 and policies that implement the authority granted by 

25 this section. 


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

2 course of selecting potential projects to be funded 

3 under this section, the Administrator shall seek re4 quests for interest from entities interested in identi5 fying potential projects through one or more notices 

6 published in the Federal Register.’’. 

7 SEC. 5002. BONNEVILLE POWER ADMINISTRATION. 

8 For the purposes of providing funds to assist in fi9 nancing the construction, acquisition, and replacement of 

10 the transmission system of the Bonneville Power Adminis11 tration and to implement the authority of the Adminis12 trator under the Pacific Northwest Electric Power Plan13 ning and Conservation Act (16 U.S.C. 839 et seq.), an 

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

15 available under the Federal Columbia River Transmission 

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

17 at any time. 

18 SEC. 5003. APPROPRIATIONS TRANSFER AUTHORITY. 

19 Not to exceed 20 percent of the amounts made avail20 able in this Act to the Department of Energy for ‘‘Energy 

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

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

23 Guarantee Program’’ may be transferred within and be24 tween such accounts, except that no amount specified 

25 under any such heading may be increased or decreased 


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

2 notification of such transfers shall be submitted promptly 

3 to the Committees on Appropriations of the House of Rep4 resentatives and the Senate. 

5 TITLE VI—FINANCIAL SERVICES 

6 AND GENERAL GOVERNMENT 

7 Subtitle A—General Services 

8 GENERAL SERVICES ADMINISTRATION

9 FEDERAL BUILDINGS FUND

10 LIMITATIONS ON AVAILABILITY OF REVENUE

11 (INCLUDING TRANSFER OF FUNDS)

12 For an additional amount to be deposited in the Fed13 eral Buildings Fund, $7,700,000,000 for real property ac14 tivities with priority given to activities that can commence 

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

16 $1,000,000,000 shall be used for construction, repair, and 

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

18 which not less than $6,000,000,000 shall be used for con19 struction, repair, and alteration of Federal buildings for 

20 projects that will create the greatest impact on energy effi21 ciency and conservation; of which $108,000,000 shall re22 main available until September 30, 2012, and shall be 

23 used for rental of space costs associated with the construc24 tion, repair, and alteration of these projects; Provided, 

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


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1 available until September 30, 2012, and shall be for build2 ing operations in support of the activities described in this 

3 paragraph: Provided further, That the preceding proviso 

4 shall apply to this appropriation in lieu of the provisions 

5 of section 1106 of this Act: Provided further, That the Ad6 ministrator of General Services is authorized to initiate 

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

8 projects through existing authorities of the Administrator: 

9 Provided further, That the Administrator shall submit a 

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

11 the Committees on Appropriations of the House of Rep12 resentatives and the Senate within 30 days after enact13 ment of this Act, and shall provide notification to the 

14 Committees within 15 days prior to any changes regarding 

15 the use of these funds: Provided further, That the Admin16 istrator shall report to the Committees on the obligation 

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

18 2009: Provided further, That of the amounts provided, 

19 $4,000,000 shall be transferred to and merged with ‘‘Gov20 ernment-Wide Policy’’, for the Office of Federal High-Per21 formance Green Buildings as authorized in the Energy 

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

23 140). 


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1 ENERGY EFFICIENT FEDERAL MOTOR VEHICLE FLEET

2 PROCUREMENT

3 For capital expenditures and necessary expenses of 

4 the General Services Administration’s Motor Vehicle Ac5 quisition and Motor Vehicle Leasing programs for the ac6 quisition of motor vehicles, including plug-in and alter7 native fuel vehicles, $600,000,000: Provided, That the 

8 amount set aside from this appropriation pursuant to sec9 tion 1106 of this Act shall be 1 percent instead of the 

10 percentage specified in such section: Provided further, 

11 That none of these funds may be obligated until the Ad12 ministrator of General Services submits to the Committees 

13 on Appropriations of the House of Representatives and the 

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

15 for expenditure of the funds that details the current inven16 tory of the Federal fleet owned by the General Services 

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

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

19 Federal fleet with the goal of substantially increasing en20 ergy efficiency over the current status, including increas21 ing fuel efficiency and reducing emissions: Provided fur22 ther, That the Administrator shall report to the Commit23 tees on the obligation of these funds on a quarterly basis 

24 beginning on June 30, 2009. 


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1 Subtitle B—Small Business 

2 SMALL BUSINESS ADMINISTRATION

3 BUSINESS LOANS PROGRAM ACCOUNT

4 (INCLUDING TRANSFERS OF FUNDS)

5 For the cost of direct loans and loan guarantees au6 thorized by sections 6202 through 6205 of this Act, 

7 $426,000,000: Provided, That such cost, including the 

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

9 502 of the Congressional Budget Act of 1974. In addition, 

10 for administrative expenses to carry out the direct loan 

11 and loan guarantee programs authorized by this Act, 

12 $4,000,000, which may be transferred to and merged with 

13 the appropriations for Salaries and Expenses: Provided, 

14 That this sentence shall apply to this appropriation in lieu 

15 of the provisions of section 1106 of this Act. 

16 GENERAL PROVISIONS, THIS SUBTITLE 

17 SEC. 6201. ECONOMIC STIMULUS LENDING PROGRAM FOR 

18 SMALL BUSINESSES. 

19 (a) PURPOSE.—The purpose of this section is to per20 mit the Small Business Administration to guarantee up 

21 to 95 percent of qualifying small business loans made by 

22 eligible lenders. 

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

24 (1) The term ‘‘Administrator’’ means the Ad25 ministrator of the Small Business Administration. 


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

2 means any loan to a small business concern that 

3 would be eligible for a loan guarantee under section 

4 7(a) of the Small Business Act (15 U.S.C. 636) or 

5 title V of the Small Business Investment Act of 

6 1958 (15 U.S.C. 695 and following). 

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

8 same meaning as provided by section 3 of the Small 

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

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

11 guarantee program under this section a lender shall sub12 mit an application to the Administrator for the guarantee 

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

14 small business loan. The Administrator shall approve or 

15 deny each such application within 5 business days after 

16 receipt thereof. The Administrator may not delegate to 

17 lenders the authority to approve or disapprove such appli18 cations. 

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

20 guarantees issued under this section. Such fees shall not 

21 exceed the fees permitted for loan guarantees under sec22 tion 7(a) of the Small Business Act (15 U.S.C. 631 and 

23 following). 

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

25 guarantee under this section any loan that bears interest 


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

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

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

4 is issued: 

5 (1) The London interbank offered rate 

6 (LIBOR) for a 3-month period. 

7 (2) The Prime Rate. 

8 (f) QUALIFIED BORROWERS.— 

9 (1) ALIENS UNLAWFULLY PRESENT IN THE

10 UNITED STATES.—A loan guarantee may not be 

11 made under this section for a loan made to a con12 cern if an individual who is an alien unlawfully 

13 present in the United States— 

14 (A) has an ownership interest in that con15 cern; or 

16 (B) has an ownership interest in another 

17 concern that itself has an ownership interest in 

18 that concern. 

19 (2) FIRMS IN VIOLATION OF IMMIGRATION

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

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

22 determination by the Secretary of Homeland Secu23 rity or the Attorney General to have engaged in a 

24 pattern or practice of hiring, recruiting or referring 


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

2 alien knowing the person is an unauthorized alien. 

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

4 approval of any loan guarantee under this section, the Ad5 ministrator may verify the applicant’s criminal back6 ground, or lack thereof, through the best available means, 

7 including, if possible, use of the National Crime Informa8 tion Center computer system at the Federal Bureau of In9 vestigation. 

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

11 section shall be construed to exempt any activity of the 

12 Administrator under this section from the Federal Credit 

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

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

15 following). 

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

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

18 of establishment (as determined by the Administrator) of 

19 the economic recovery program under section 6204. 

20 (j) SMALL BUSINESS ACT PROVISIONS.—The provi21 sions of the Small Business Act applicable to loan guaran22 tees under section 7 of that Act shall apply to loan guaran23 tees under this section except as otherwise provided in this 

24 section. 


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1 (k) AUTHORIZATION.—There are authorized to be ap2 propriated such sums as may be necessary to carry out 

3 this section. 

4 SEC. 6202. ESTABLISHMENT OF SBA SECONDARY MARKET 

5 LENDING AUTHORITY. 

6 (a) PURPOSE.—The purpose of this section is to pro7 vide the Small Business Administration with the authority 

8 to establish a Secondary Market Lending Authority within 

9 the SBA to make loans to the systemically important SBA 

10 secondary market broker-dealers who operate the SBA 

11 secondary market. 

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

13 (1) The term ‘‘Administrator’’ means the Ad14 ministrator of the SBA. 

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

16 Administration. 

17 (3) The terms ‘‘Secondary Market Lending Au18 thority’’ and ‘‘Authority’’ mean the office established 

19 under subsection (c). 

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

21 the market for the purchase and sale of loans origi22 nated, underwritten, and closed under the Small 

23 Business Act. 

24 (5) The term ‘‘Systemically Important Sec25 ondary Market Broker-Dealers’’ mean those entities 


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

2 continued operation of the SBA secondary market 

3 by reason of their purchase and sale of the govern4 ment guaranteed portion of loans, or pools of loans, 

5 originated, underwritten, and closed under the Small 

6 Business Act. 

7 (c) RESPONSIBILITIES, AUTHORITIES, ORGANIZA8 TION, AND LIMITATIONS.— 

9 (1) DESIGNATION OF SYSTEMICALLY IMPOR10 TANT SBA SECONDARY MARKET BROKER-DEAL11 ERS.—The Administrator shall establish a process to 

12 designate, in consultation with the Board of Gov13 ernors of the Federal Reserve and the Secretary of 

14 the Treasury, Systemically Important Secondary 

15 Market Broker-Dealers. 

16 (2) ESTABLISHMENT OF SBA SECONDARY MAR17 KET LENDING AUTHORITY.— 

18 (A) ORGANIZATION.— 

19 (i) The Administrator shall establish 

20 within the SBA an office to provide loans 

21 to Systemically Important Secondary Mar22 ket Broker-dealers to be used for the pur23 pose of financing the inventory of the gov24 ernment guaranteed portion of loans, origiVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00116 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 nated, underwritten, and closed under the 

2 Small Business Act or pools of such loans. 

3 (ii) The Administrator shall appoint a 

4 Director of the Authority who shall report 

5 to the Administrator. 

6 (iii) The Administrator is authorized 

7 to hire such personnel as are necessary to 

8 operate the Authority. 

9 (iv) The Administrator may contract 

10 such Authority operations as he determines 

11 necessary to qualified third-party compa12 nies or individuals. 

13 (v) The Administrator is authorized to 

14 contract with private sector fiduciary and 

15 custodial agents as necessary to operate 

16 the Authority. 

17 (B) LOANS.— 

18 (i) The Administrator shall establish 

19 by rule a process under which Systemically 

20 Important SBA Secondary Market Broker21 Dealers designated under paragraph (1) 

22 may apply to the Administrator for loans 

23 under this section. 

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

25 provide a process for the Administrator to 


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1 consider and make decisions regarding 

2 whether or not to extend a loan applied for 

3 under this section. Such rule shall include 

4 provisions to assure each of the following: 

5 (I) That loans made under this 

6 section are for the sole purpose of fi7 nancing the inventory of the govern8 ment guaranteed portion of loans, 

9 originated, underwritten, and closed 

10 under the Small Business Act or pools 

11 of such loans. 

12 (II) That loans made under this 

13 section are fully collateralized to the 

14 satisfaction of the Administrator. 

15 (III) That there is no limit to the 

16 frequency in which a borrower may 

17 borrow under this section unless the 

18 Administrator determines that doing 

19 so would create an undue risk of loss 

20 to the agency or the United States. 

21 (IV) That there is no limit on the 

22 size of a loan, subject to the discretion 

23 of the Administrator. 

24 (iii) Interest on loans under this sec25 tion shall not exceed the Federal Funds 


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1 target rate as established by the Federal 

2 Reserve Board of Governors plus 25 basis 

3 points. 

4 (iv) The rule under this section shall 

5 provide for such loan documents, legal cov6 enants, collateral requirements and other 

7 required documentation as necessary to 

8 protect the interests of the agency, the 

9 United States, and the taxpayer. 

10 (v) The Administrator shall establish 

11 custodial accounts to safeguard any collat12 eral pledged to the SBA in connection with 

13 a loan under this section. 

14 (vi) The Administrator shall establish 

15 a process to disburse and receive funds to 

16 and from borrowers under this section. 

17 (C) LIMITATIONS ON USE OF LOAN PRO18 CEEDS BY SYSTEMICALLY IMPORTANT SEC19 ONDARY MARKET BROKER-DEALERS.—The Ad20 ministrator shall ensure that borrowers under 

21 this section are using funds provided under this 

22 section only for the purpose specified in sub23 paragraph (B)(ii)(I). If the Administrator finds 

24 that such funds were used for any other pur25 pose, the Administrator shall— 


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1 (i) require immediate repayment of 

2 outstanding loans; 

3 (ii) prohibit the borrower, its affili4 ates, or any future corporate manifestation 

5 of the borrower from using the Authority; 

6 and 

7 (iii) take any other actions the Ad8 ministrator, in consultation with the Attor9 ney General of the United States, deems 

10 appropriate. 

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

12 submit a report to Congress not later than the third busi13 ness day of each month containing a statement of each 

14 of the following: 

15 (1) The aggregate loan amounts extended dur16 ing the preceding month under this section. 

17 (2) The aggregate loan amounts repaid under 

18 this section during the proceeding month. 

19 (3) The aggregate loan amount outstanding 

20 under this section. 

21 (4) The aggregate value of assets held as collat22 eral under this section. 

23 (5) The amount of any defaults or delinquencies 

24 on loans made under this section. 


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

2 Administrator to misuse funds made available under 

3 this section. 

4 (7) Any other information the Administrator 

5 deems necessary to fully inform Congress of undue 

6 risk of financial loss to the United States in connec7 tion with loans made under this section. 

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

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

10 enactment of this section. 

11 (f) FUNDING.—Such sums as necessary are author12 ized to be appropriated to carry out the provisions of this 

13 section. 

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

15 shall be construed to exempt any activity of the Adminis16 trator under this section from the Federal Credit Reform 

17 Act of 1990 (title V of the Congressional Budget and Im18 poundment Control Act of 1974; 2 U.S.C. 661 and fol19 lowing). 

20 (h) EMERGENCY RULEMAKING AUTHORITY.—The 

21 Administrator shall promulgate regulations under this sec22 tion within 15 days after the date of enactment of enact23 ment of this section. In promulgating these regulations, 

24 the Administrator the notice requirements of section 

25 553(b) of title 5 of the United States Code shall not apply. 


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1 SEC. 6203. ESTABLISHMENT OF SBA SECONDARY MARKET 

2 GUARANTEE AUTHORITY. 

3 (a) PURPOSE.—The purpose of this section is to pro4 vide the Administrator with the authority to establish the 

5 SBA Secondary Market Guarantee Authority within the 

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

7 504 loans that are to be sold to third-party investors. 

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

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

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

12 means the first mortgage position, non-federally 

13 guaranteed loans made by private sector lenders 

14 made under title V of the Small Business Invest15 ment Act. 

16 (c) ESTABLISHMENT OF AUTHORITY.— 

17 (1) ORGANIZATION.— 

18 (A) The Administrator shall establish a 

19 Secondary Market Guarantee Authority within 

20 the Small Business Administration. 

21 (B) The Administrator shall appoint a Di22 rector of the Authority who shall report to the 

23 Administrator. 

24 (C) The Administrator is authorized to 

25 hire such personnel as are necessary to operate 

26 the Authority and may contract such operations 


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1 of the Authority as necessary to qualified third2 party companies or individuals. 

3 (D) The Administrator is authorized to 

4 contract with private sector fiduciary and custo5 dial agents as necessary to operate the Author6 ity. 

7 (2) GUARANTEE PROCESS.— 

8 (A) The Administrator shall establish, by 

9 rule, a process in which private sector entities 

10 may apply to the Administration for a Federal 

11 guarantee on pools of first lien position 504 

12 loans that are to be sold to third-party inves13 tors. 

14 (B) The Administrator shall appoint a Di15 rector of the Authority who shall report to the 

16 Administrator. 

17 (C) The Administrator is authorized to 

18 hire such personnel as are necessary to operate 

19 the Authority and may contract such operations 

20 of the Authority as necessary to qualified third21 party companies or individuals. 

22 (D) The Administrator is authorized to 

23 contract with private sector fiduciary and custo24 dial agents as necessary to operate the Author25 ity. 


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1 (3) RESPONSIBILITIES.— 

2 (A) The Administrator shall establish, by 

3 rule, a process in which private sector entities 

4 may apply to the SBA for a Federal guarantee 

5 on pools of first lien position 504 loans that are 

6 to be sold to third-party investors. 

7 (B) The rule under this section shall pro8 vide for a process for the Administrator to con9 sider and make decisions regarding whether to 

10 extend a Federal guarantee referred to in 

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

12 (i) The seller of the pools purchasing 

13 a guarantee under this section retains not 

14 less than 5 percent of the dollar amount of 

15 the pools to be sold to third-party inves16 tors. 

17 (ii) The seller of such pools shall ab18 sorb any and all losses resulting from a 

19 shortage or excess of monthly cash flows. 

20 (iii) The Administrator shall receive a 

21 monthly fee of not more than 50 basis 

22 points on the outstanding balance of the 

23 dollar amount of the pools that are guar24 anteed. 


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1 (iv) The Administrator may guarantee 

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

3 under this authority. 

4 (C) The Administrator shall establish doc5 uments, legal covenants, and other required 

6 documentation to protect the interests of the 

7 United States. 

8 (D) The Administrator shall establish a 

9 process to receive and disburse funds to entities 

10 under the authority established in this section. 

11 (d) LIMITATIONS.— 

12 (1) The Administrator shall ensure that entities 

13 purchasing a guarantee under this section are using 

14 such guarantee for the purpose of selling 504 first 

15 lien position pools to third-party investors. 

16 (2) If the Administrator finds that any such 

17 guarantee was used for a purpose other than that 

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

19 (A) terminate such guarantee immediately, 

20 (B) prohibit the purchaser of the guar21 antee or its affiliates (within the meaning of the 

22 regulations under 13 CFR 121.103) from using 

23 the authority of this section in the future; and 


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1 (C) take any other actions the Adminis2 trator, in consultation with the Attorney Gen3 eral of the United States deems appropriate. 

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

5 report to Congress not later than the third business day 

6 of each month setting forth each of the following: 

7 (1) The aggregate amount of guarantees ex8 tended under this section during the proceeding 

9 month. 

10 (2) The aggregate amount of guarantees out11 standing. 

12 (3) Defaults and payments on defaults made 

13 under this section. 

14 (4) The identity of each purchaser of a guar15 antee found by the Administrator to have misused 

16 guarantees under this section. 

17 (5) Any other information the Administrator 

18 deems necessary to fully inform Congress of undue 

19 risk to the United States associated with the 

20 issuance of guarantees under this section. 

21 (f) DURATION OF PROGRAM.—The authority of this 

22 section shall terminate on the date 2 years after the date 

23 of enactment of this section. 


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1 (g) FUNDING.—Such sums as necessary are author2 ized to be appropriated to carry out the provisions of this 

3 section. 

4 (h) BUDGET TREATMENT.—Nothing in this section 

5 shall be construed to exempt any activity of the Adminis6 trator under this section from the Federal Credit Reform 

7 Act of 1990 (title V of the Congressional Budget and Im8 poundment Control Act of 1974; 2 U.S.C. 661 and fol9 lowing). 

10 (i) EMERGENCY RULEMAKING AUTHORITY.—The 

11 Administrator shall issue regulations under this section 

12 within 15 days after the date of enactment of this section. 

13 The notice requirements of section 553(b) of Title 5, 

14 United States Code shall not apply to the promulgation 

15 of such regulations. 

16 SEC. 6204. ECONOMIC RECOVERY PROGRAM. 

17 (a) PURPOSE.—The purpose of this section is to es18 tablish a new lending and refinancing authority within the 

19 Small Business Administration. 

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

21 (1) The term ‘‘Administrator’’ means the Ad22 ministrator of the Small Business Administration. 

23 (2) The term ‘‘small business concern’’ has the 

24 same meaning as provided by section 3 of the Small 

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


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1 (c) REFINANCING AUTHORITY.— 

2 (1) IN GENERAL.—Upon application from a 

3 lender (and with consent of the borrower), the Ad4 ministrator may refinance existing non-Small Busi5 ness Administration or Small Business Administra6 tion loans (including loans under sections 7(a) and 

7 504 of the Small Business Act) made to small busi8 ness concerns. 

9 (2) ELIGIBLE LOANS.—In order to be eligible 

10 for refinancing under this section— 

11 (A) the amount of the loan refinanced may 

12 not exceed $10,000,000 and a first lien must be 

13 conveyed to the Administrator; 

14 (B) the lender shall offer to accept from 

15 the Administrator as full repayment of the loan 

16 an amount equal to less than 100 percent but 

17 more than 85 percent of the remaining balance 

18 of the principal of the loan; and 

19 (C) the loan to be refinanced was made be20 fore the date of enactment of this Act and for 

21 a purpose that would have been eligible for a 

22 loan under any Small Business Administration 

23 lending program. 

24 (3) TERMS.—The term of the refinancing by 

25 the Administrator under this section shall not be 


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1 less than remaining term on the loan that is refi2 nanced but shall not exceed a term of 20 years. The 

3 rate of interest on the loan refinanced under this 

4 section shall be fixed by the Administrator at a level 

5 that the Administrator determines will result in 

6 manageable monthly payments for the borrower. 

7 (4) LIMIT.—The Administrator may not refi8 nance amounts under this section that are greater 

9 than the amount the lender agrees to accept from 

10 the Administrator as full repayment of the loan as 

11 provided in paragraph (2)(B). 

12 (d) UNDERWRITING AND OTHER LOAN SERVICES.— 

13 (1) IN GENERAL.—The Administrator is au14 thorized to engage in underwriting, loan closing, 

15 funding, and servicing of loans made to small busi16 ness concerns and to guarantee loans made by other 

17 entities to small business concerns. 

18 (2) APPLICATION PROCESS.—The Adminis19 trator shall by rule establish a process in which 

20 small business concerns may submit applications to 

21 the Administrator for the purposes of securing a 

22 loan under this subsection. The Administrator shall, 

23 at a minimum, collect all information necessary to 

24 determine the creditworthiness and repayment abil25 ity of the borrower. 


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1 (3) PARTICIPATION OF LENDERS.— 

2 (A) The Administrator shall by rule estab3 lish a process in which the Administrator makes 

4 available loan applications and all accom5 panying information to lenders for the purpose 

6 of such lenders originating, underwriting, clos7 ing, and servicing such loans. 

8 (B) Lenders are eligible to receive loan ap9 plications and accompanying information under 

10 this paragraph if they participate in the pro11 grams established in section 7(a) of the Small 

12 Business Act (15 U.S.C. 636) or title V of the 

13 Small Business Investment Act (15 U.S.C. 

14 695). 

15 (C) The Administrator shall first make 

16 available such loan applications and accom17 panying information to lenders within 100 miles 

18 of a loan applicant’s principal office. 

19 (D) If a lender described in subparagraph 

20 (C) does not agree to originate, underwrite, 

21 close, and service such loans within 5 business 

22 days of receiving the loan applications, the Ad23 ministrator shall subsequently make available 

24 such loan applications and accompanying infor25 mation to lenders in the Preferred Lenders ProVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00130 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 gram under section 7(a)(2)(C)(ii) of the Small 

2 Business Act (15 U.S.C. 636). 

3 (E) If a lender described in subparagraph 

4 (C) or (D) does not agree to originate, under5 write, close, and service such loans within 10 

6 business days of receiving the loan applications, 

7 the Administrator may originate, underwrite, 

8 close, and service such loans as described in 

9 paragraph (1) of this subsection. 

10 (4) ASSET SALES.—The Administrator shall 

11 offer to sell loans made or refinanced by the Admin12 istrator under this section. Such sales shall be made 

13 through semi-annual public solicitation (in the Fed14 eral Register and in other media) of offers to pur15 chase. The Administrator may contract with vendors 

16 for due diligence, asset valuation, and other services 

17 related to such sales. The Administrator may not 

18 sell any loan under this section for less than 90 per19 cent of the net present value of the loan, as deter20 mined and certified by a qualified third-party. 

21 (5) LOANS NOT SOLD.—The Administrator 

22 shall maintain and service loans made by the Admin23 istrator under this section that are not sold through 

24 the asset sales under this section. 


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

2 terminate on the date two years after the date on which 

3 the program under this section becomes operational (as 

4 determined by the Administrator). 

5 (f) APPLICATION OF OTHER LAW.—Nothing in this 

6 section shall be construed to exempt any activity of the 

7 Administrator under this section from the Federal Credit 

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

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

10 following). 

11 (g) QUALIFIED LOANS.— 

12 (1) ALIENS UNLAWFULLY PRESENT IN THE

13 UNITED STATES.—A loan to any concern shall not 

14 be subject to this section if an individual who is an 

15 alien unlawfully present in the United States— 

16 (A) has an ownership interest in that con17 cern; or 

18 (B) has an ownership interest in another 

19 concern that itself has an ownership interest in 

20 that concern. 

21 (2) FIRMS IN VIOLATION OF IMMIGRATION

22 LAWS.—No loan shall be subject to this section if 

23 the borrower is an entity found, based on a deter24 mination by the Secretary of Homeland Security or 

25 the Attorney General to have engaged in a pattern 


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1 or practice of hiring, recruiting or referring for a 

2 fee, for employment in the United States an alien 

3 knowing the person is an unauthorized alien. 

4 (h) REPORTS.—The Administrator shall submit a re5 port to Congress semi-annually setting forth the aggregate 

6 amount of loans and geographic dispersion of such loans 

7 made, underwritten, closed, funded, serviced, sold, guaran8 teed, or held by the Administrator under the authority of 

9 this section. Such report shall also set forth information 

10 concerning loan defaults, prepayments, and recoveries re11 lated to loans ,made under the authority of this section. 

12 (i) AUTHORIZATION.—There are authorized to be ap13 propriated such sums as may be necessary to carry out 

14 this section. 

15 SEC. 6205. STIMULUS FOR COMMUNITY DEVELOPMENT 

16 LENDING. 

17 (a) REFINANCING UNDER THE LOCAL DEVELOP18 MENT BUSINESS LOAN PROGRAM.—Section 502 of the 

19 Small Business Investment Act of 1958 (15 U.S.C. 696) 

20 is amended by adding at the end the following: 

21 ‘‘(7) PERMISSIBLE DEBT REFINANCING.— 

22 ‘‘(A) IN GENERAL.—Any financing ap23 proved under this title may include a limited 

24 amount of debt refinancing. 


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1 ‘‘(B) EXPANSIONS.—If the project involves 

2 expansion of a small business concern which 

3 has existing indebtedness collateralized by fixed 

4 assets, any amount of existing indebtedness 

that does not exceed 1 5 ⁄2 of the project cost of 

6 the expansion may be refinanced and added to 

7 the expansion cost, if— 

8 ‘‘(i) the proceeds of the indebtedness 

9 were used to acquire land, including a 

10 building situated thereon, to construct a 

11 building thereon, or to purchase equip12 ment; 

13 ‘‘(ii) the borrower has been current on 

14 all payments due on the existing debt for 

15 not less than 1 year preceding the date of 

16 refinancing; and 

17 ‘‘(iii) the financing under section 504 

18 will provide better terms or rate of interest 

19 than exists on the debt at the time of refi20 nancing.’’. 

21 (b) JOB CREATION GOALS.—Section 501(e)(1) and 

22 section 501(e)(2) of the Small Business Investment Act 

23 (15 U.S.C. 695) are each amended by striking ‘‘$50,000’’ 

24 and inserting ‘‘$65,000’’. 


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1 SEC. 6206. INCREASING SMALL BUSINESS INVESTMENT. 

2 (a) SIMPLIFIED MAXIMUM LEVERAGE LIMITS.—Sec3 tion 303(b) of the Small Business Investment Act of 1958 

4 (15 U.S.C. 683(b)) is amended— 

5 (1) by striking so much of paragraph (2) as 

6 precedes subparagraphs (C) and (D) and inserting 

7 the following: 

8 ‘‘(2) MAXIMUM LEVERAGE.— 

9 ‘‘(A) IN GENERAL.—The maximum 

10 amount of outstanding leverage made available 

11 to any one company licensed under section 

12 301(c) of this Act may not exceed the lesser 

13 of— 

14 ‘‘(i) 300 percent of such company’s 

15 private capital; or 

16 ‘‘(ii) $150,000,000. 

17 ‘‘(B) MULTIPLE LICENSES UNDER COM18 MON CONTROL.—The maximum amount of out19 standing leverage made available to two or more 

20 companies licensed under section 301(c) of this 

21 Act that are commonly controlled (as deter22 mined by the Administrator) and not under 

23 capital impairment may not exceed 

24 $225,000,000.’’; and 

25 (2) by striking paragraph (4). 


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1 (b) SIMPLIFIED AGGREGATE INVESTMENT LIMITA2 TIONS.—Section 306(a) of the Small Business Investment 

3 Act of 1958 (15 U.S.C. 686(a)) is amended to read as 

4 follows: 

5 ‘‘(a) PERCENTAGE LIMITATION ON PRIVATE CAP6 ITAL.—If any small business investment company has ob7 tained financing from the Administrator and such financ8 ing remains outstanding, the aggregate amount of securi9 ties acquired and for which commitments may be issued 

10 by such company under the provisions of this title for any 

11 single enterprise shall not, without the approval of the Ad12 ministrator, exceed 10 percent of the sum of— 

13 ‘‘(1) the private capital of such company; and 

14 ‘‘(2) the total amount of leverage projected by 

15 the company in the company’s business plan that 

16 was approved by the Administrator at the time of 

17 the grant of the company’s license.’’. 

18 SEC. 6207. GAO REPORT. 

19 (a) REPORT.—Not later than 30 days after the enact20 ment of this Act, the Comptroller General of the United 

21 States shall report to the Congress on the actions of the 

22 Administrator in implementing the authority established 

23 in sections 6201 through 6206 of this Act. 

24 (b) INCLUDED ITEM.—The report under this section 

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1 trator under this section and an analysis of whether he 

2 is accomplishing the purpose of increasing liquidity in the 

3 secondary market for Small Business Administration 

4 loans. 

5 TITLE VII—HOMELAND 

6 SECURITY 

7 DEPARTMENT OF HOMELAND SECURITY 

8 U.S. CUSTOMS AND BORDER PROTECTION

9 SALARIES AND EXPENSES

10 For an additional amount for ‘‘Salaries and Ex11 penses’’, $100,000,000, for non-intrusive detection tech12 nology to be deployed at sea ports of entry. 

13 CONSTRUCTION

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

15 $150,000,000, to repair and construct inspection facilities 

16 at land border ports of entry. 

17 TRANSPORTATION SECURITY ADMINISTRATION

18 AVIATION SECURITY

19 For an additional amount for ‘‘Aviation Security’’, 

20 $500,000,000, for the purchase and installation of explo21 sive detection systems and emerging checkpoint tech22 nologies: Provided, That the Assistant Secretary of Home23 land Security (Transportation Security Administration) 

24 shall prioritize the award of these funds to accelerate the 


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1 installations at locations with completed design plans and 

2 to expeditiously award new letters of intent. 

3 COAST GUARD

4 ALTERATION OF BRIDGES

5 For an additional amount for ‘‘Alteration of 

6 Bridges’’, $150,000,000, for alteration or removal of ob7 structive bridges, as authorized by section 6 of the Tru8 man-Hobbs Act (33 U.S.C. 516): Provided, That the 

9 Coast Guard shall award these funds to those bridges that 

10 are ready to proceed to construction. 

11 FEDERAL EMERGENCY MANAGEMENT AGENCY

12 EMERGENCY FOOD AND SHELTER

13 For an additional amount for ‘‘Emergency Food and 

14 Shelter’’, $200,000,000, to carry out the emergency food 

15 and shelter program pursuant to title III of the McKin16 ney-Vento Homeless Assistance Act (42 U.S.C. 11331 et 

17 seq.): Provided, That for the purposes of this appropria18 tion, the redistribution required by section 1104(b) shall 

19 be carried out by the Federal Emergency Management 

20 Agency and the National Board, who may reallocate and 

21 obligate any funds that are unclaimed or returned to the 

22 program: Provided further, That the amount set aside 

23 from this appropriation pursuant to section 1106 of this 

24 Act shall be 3.5 percent instead of the percentage specified 

25 in such section. 


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1 GENERAL PROVISIONS, THIS TITLE 

2 SEC. 7001. EXTENSION OF PROGRAMS. 

3 Section 401(b) of the Illegal Immigration Reform and 

4 Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a 

5 note) is amended by striking ‘‘11-year period’’ and insert6 ing ‘‘16-year period’’. 

7 SEC. 7002. PROTECTION OF SOCIAL SECURITY ADMINIS8 TRATION PROGRAMS. 

9 (a) FUNDING UNDER AGREEMENT.—Effective for 

10 fiscal years beginning on or after October 1, 2008, the 

11 Commissioner of Social Security and the Secretary of 

12 Homeland Security shall enter into and maintain an 

13 agreement which shall— 

14 (1) provide funds to the Commissioner for the 

15 full costs of the responsibilities of the Commissioner 

16 under section 404 of the Illegal Immigration Reform 

17 and Immigrant Responsibility Act of 1996 (8 U.S.C. 

18 1324a note), including (but not limited to)— 

19 (A) acquiring, installing, and maintaining 

20 technological equipment and systems necessary 

21 for the fulfillment of the responsibilities of the 

22 Commissioner under such section 404, but only 

23 that portion of such costs that are attributable 

24 exclusively to such responsibilities; and 


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1 (B) responding to individuals who contest 

2 a tentative nonconfirmation provided by the 

3 basic pilot confirmation system established 

4 under such section; 

5 (2) provide such funds quarterly in advance of 

6 the applicable quarter based on estimating method7 ology agreed to by the Commissioner and the Sec8 retary (except in such instances where the delayed 

9 enactment of an annual appropriation may preclude 

10 such quarterly payments); and 

11 (3) require an annual accounting and reconcili12 ation of the actual costs incurred and the funds pro13 vided under the agreement, which shall be reviewed 

14 by the Office of Inspector General of the Social Se15 curity Administration and the Department of Home16 land Security. 

17 (b) CONTINUATION OF EMPLOYMENT VERIFICATION

18 IN ABSENCE OF TIMELY AGREEMENT.—In any case in 

19 which the agreement required under subsection (a) for any 

20 fiscal year beginning on or after October 1, 2008, has not 

21 been reached as of October 1 of such fiscal year, the latest 

22 agreement between the Commissioner and the Secretary 

23 of Homeland Security providing for funding to cover the 

24 costs of the responsibilities of the Commissioner under 

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1 grant Responsibility Act of 1996 (8 U.S.C. 1324a note) 

2 shall be deemed in effect on an interim basis for such fis3 cal year until such time as an agreement required under 

4 subsection (a) is subsequently reached, except that the 

5 terms of such interim agreement shall be modified by the 

6 Director of the Office of Management and Budget to ad7 just for inflation and any increase or decrease in the vol8 ume of requests under the basic pilot confirmation system. 

9 In any case in which an interim agreement applies for any 

10 fiscal year under this subsection, the Commissioner and 

11 the Secretary shall, not later than October 1 of such fiscal 

12 year, notify the Committee on Ways and Means, the Com13 mittee on the Judiciary, and the Committee on Appropria14 tions of the House of Representatives and the Committee 

15 on Finance, the Committee on the Judiciary, and the 

16 Committee on Appropriations of the Senate of the failure 

17 to reach the agreement required under subsection (a) for 

18 such fiscal year. Until such time as the agreement re19 quired under subsection (a) has been reached for such fis20 cal year, the Commissioner and the Secretary shall, not 

21 later than the end of each 90-day period after October 

22 1 of such fiscal year, notify such Committees of the status 

23 of negotiations between the Commissioner and the Sec24 retary in order to reach such an agreement. 


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1 SEC. 7003. GAO STUDY OF BASIC PILOT CONFIRMATION 

2 SYSTEM. 

3 (a) IN GENERAL.—As soon as practicable after the 

4 date of the enactment of this Act, the Comptroller General 

5 of the United States shall conduct a study regarding erro6 neous tentative nonconfirmations under the basic pilot 

7 confirmation system established under section 404(a) of 

8 the Illegal Immigration Reform and Immigrant Responsi9 bility Act of 1996 (8 U.S.C. 1324a note). 

10 (b) MATTERS TO BE STUDIED.—In the study re11 quired under subsection (a), the Comptroller General shall 

12 determine and analyze— 

13 (1) the causes of erroneous tentative noncon14 firmations under the basic pilot confirmation system; 

15 (2) the processes by which such erroneous ten16 tative nonconfirmations are remedied; and 

17 (3) the effect of such erroneous tentative non18 confirmations on individuals, employers, and Federal 

19 agencies. 

20 (c) REPORT.—Not later than 2 years after the date 

21 of the enactment of this Act, the Comptroller General shall 

22 submit the results of the study required under subsection 

23 (a) to the Committee on Ways and Means and the Com24 mittee on the Judiciary of the House of Representatives 

25 and the Committee on Finance and the Committee on the 

26 Judiciary of the Senate. 


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1 SEC. 7004. GAO STUDY OF EFFECTS OF BASIC PILOT PRO2 GRAM ON SMALL ENTITIES. 

3 (a) IN GENERAL.—Not later than 2 years after the 

4 date of the enactment of this Act, the Comptroller General 

5 of the United States shall submit to the Committees on 

6 the Judiciary of the United States House of Representa7 tives and the Senate a report containing the Comptroller 

8 General’s analysis of the effects of the basic pilot program 

9 described in section 403(a) of the Illegal Immigration Re10 form and Immigrant Responsibility Act of 1996 (8 U.S.C. 

11 1324a note) on small entities (as defined in section 601 

12 of title 5, United States Code). The report shall detail— 

13 (1) the costs of compliance with such program 

14 on small entities; 

15 (2) a description and an estimate of the number 

16 of small entities enrolled and participating in such 

17 program or an explanation of why no such estimate 

18 is available; 

19 (3) the projected reporting, recordkeeping and 

20 other compliance requirements of such program on 

21 small entities; 

22 (4) factors that impact small entities’ enroll23 ment and participation in such program, including 

24 access to appropriate technology, geography, entity 

25 size, and class of entity; and 


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1 (5) the steps, if any, the Secretary of Homeland 

2 Security has taken to minimize the economic impact 

3 of participating in such program on small entities. 

4 (b) DIRECT AND INDIRECT EFFECTS.—The report 

5 shall cover, and treat separately, direct effects (such as 

6 wages, time, and fees spent on compliance) and indirect 

7 effects (such as the effect on cash flow, sales, and competi8 tiveness). 

9 (c) SPECIFIC CONTENTS.—The report shall provide 

10 specific and separate details with respect to— 

11 (1) small businesses (as defined in section 601 

12 of title 5, United States Code) with fewer than 50 

13 employees; and 

14 (2) small entities operating in States that have 

15 mandated use of the basic pilot program. 

16 SEC. 7005. WAIVER OF MATCHING REQUIREMENT UNDER 

17 SAFER PROGRAM. 

18 Subparagraph (E) of section 34(a)(1) of the Federal 

19 Fire Prevention and Control Act of 1974 (15 U.S.C. 

20 2229a(a)(1)(E)) shall not apply with respect to funds ap21 propriated in this or any other Act making appropriations 

22 for fiscal year 2009 or 2010 for grants under such section 

23 34. 


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1 SEC. 7006. PROCUREMENT FOR DEPARTMENT OF HOME2 LAND SECURITY. 

3 (a) REQUIREMENT.—Except as provided in sub4 sections (c) through (e), funds appropriated or otherwise 

5 available to the Department of Homeland Security may 

6 not be used for the procurement of an item described in 

7 subsection (b) if the item is not grown, reprocessed, re8 used, or produced in the United States. 

9 (b) COVERED ITEMS.—An item referred to in sub10 section (a) is any of the following, if the item is directly 

11 related to the national security interests of the United 

12 States: 

13 (1) An article or item of— 

14 (A) clothing and the materials and compo15 nents thereof, other than sensors, electronics, or 

16 other items added to, and not normally associ17 ated with, clothing (and the materials and com18 ponents thereof); 

19 (B) tents, tarpaulins, or covers; 

20 (C) cotton and other natural fiber prod21 ucts, woven silk or woven silk blends, spun silk 

22 yarn for cartridge cloth, synthetic fabric or 

23 coated synthetic fabric (including all textile fi24 bers and yarns that are for use in such fabrics), 

25 canvas products, or wool (whether in the form 


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1 of fiber or yarn or contained in fabrics, mate2 rials, or manufactured articles); or 

3 (D) any item of individual equipment man4 ufactured from or containing such fibers, yarns, 

5 fabrics, or materials. 

6 (c) AVAILABILITY EXCEPTION.—Subsection (a) does 

7 not apply to the extent that the Secretary of Homeland 

8 Security determines that satisfactory quality and suffi9 cient quantity of any such article or item described in sub10 section (b)(1) grown, reprocessed, reused, or produced in 

11 the United States cannot be procured as and when needed. 

12 (d) EXCEPTION FOR CERTAIN PROCUREMENTS OUT13 SIDE THE UNITED STATES.—Subsection (a) does not 

14 apply to the following: 

15 (1) Procurements by vessels in foreign waters. 

16 (2) Emergency procurements. 

17 (e) EXCEPTION FOR SMALL PURCHASES.—Sub18 section (a) does not apply to purchases for amounts not 

19 greater than the simplified acquisition threshold referred 

20 to in section 2304(g) of title 10, United States Code. 

21 (f) APPLICABILITY TO CONTRACTS AND SUB22 CONTRACTS FOR PROCUREMENT OF COMMERCIAL

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1 withstanding section 34 of the Office of Federal Procure2 ment Policy Act (41 U.S.C. 430). 

3 (g) GEOGRAPHIC COVERAGE.—In this section, the 

4 term ‘‘United States’’ includes the possessions of the 

5 United States. 

6 (h) NOTIFICATION REQUIRED WITHIN 7 DAYS

7 AFTER CONTRACT AWARD IF CERTAIN EXCEPTIONS AP8 PLIED.—In the case of any contract for the procurement 

9 of an item described in subsection (b)(1), if the Secretary 

10 of Homeland Security applies an exception set forth in 

11 subsection (c) with respect to that contract, the Secretary 

12 shall, not later than 7 days after the award of the con13 tract, post a notification that the exception has been ap14 plied on the Internet site maintained by the General Serv15 ices Administration know as FedBizOps.gov (or any suc16 cessor site). 

17 (i) TRAINING DURING FISCAL YEAR 2008.— 

18 (1) IN GENERAL.—The Secretary of Homeland 

19 Security shall ensure that each member of the acqui20 sition workforce in the Department of Homeland Se21 curity who participates personally and substantially 

22 in the acquisition of textiles on a regular basis re23 ceives training during fiscal year 2009 on the re24 quirements of this section and the regulations imple25 menting this section. 


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1 (2) INCLUSION OF INFORMATION IN NEW

2 TRAINING PROGRAMS.—The Secretary shall ensure 

3 that any training program for the acquisition work 

4 force developed or implemented after the date of the 

5 enactment of this Act includes comprehensive infor6 mation on the requirements described in paragraph 

7 (1). 

8 (j) CONSISTENCY WITH INTERNATIONAL AGREE9 MENTS.— 

10 (1) IN GENERAL.—No provision of this section 

11 shall apply to the extent the Secretary of Homeland 

12 Security, in consultation with the United States 

13 Trade Representative, determines that it is in incon14 sistent with United States obligations under an 

15 international agreement. 

16 (2) REPORT.—The Secretary of Homeland Se17 curity shall submit a report each year to Congress 

18 containing, with respect to the year covered by the 

19 report— 

20 (A) a list of each provision of this section 

21 that did not apply during that year pursuant to 

22 a determination by the Secretary under para23 graph (1); and 

24 (B) a list of each contract awarded by the 

25 Department of Homeland Security during that 


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1 year without regard to a provision in this sec2 tion because that provision was made inappli3 cable pursuant to such a determination. 

4 (k) EFFECTIVE DATE.—This section applies with re5 spect to contracts entered into by the Department of 

6 Homeland Security after the date of the enactment of this 

7 Act. 

8 TITLE VIII—INTERIOR AND 

9 ENVIRONMENT 

10 DEPARTMENT OF THE INTERIOR 

11 BUREAU OF LAND MANAGEMENT

12 CONSTRUCTION

13 (INCLUDING TRANSFERS OF FUNDS)

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

15 $325,000,000, for priority road, bridge, and trail repair 

16 or decommissioning, critical deferred maintenance 

17 projects, facilities construction and renovation, hazardous 

18 fuels reduction, and remediation of abandoned mine or 

19 well sites: Provided, That funds may be transferred to 

20 other appropriate accounts of the Bureau of Land man21 agement: Provided further, That the amount set aside 

22 from this appropriation pursuant to section 1106 of this 

23 Act shall be not more than 5 percent instead of the per24 centage specified in such section. 


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1 UNITED STATES FISH AND WILDLIFE SERVICE

2 CONSTRUCTION

3 (INCLUDING TRANSFER OF FUNDS)

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

5 $300,000,000, for priority road and bridge repair and re6 placement, and critical deferred maintenance and improve7 ment projects on National Wildlife Refuges, National Fish 

8 Hatcheries, and other Service properties: Provided, That 

9 funds may be transferred to ‘‘Resource Management’’: 

10 Provided further, That the amount set aside from this ap11 propriation pursuant to section 1106 of this Act shall be 

12 not more than 5 percent instead of the percentage speci13 fied in such section. 

14 NATIONAL PARK SERVICE

15 CONSTRUCTION

16 (INCLUDING TRANSFER OF FUNDS)

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

18 $1,700,000,000, for projects to address critical deferred 

19 maintenance needs within the National Park System, in20 cluding roads, bridges and trails, and for other critical in21 frastructure projects: Provided, That funds may be trans22 ferred to ‘‘Operation of the National Park System’’: Pro23 vided further, That $200,000,000 of these funds shall be 

24 for projects related to the preservation and repair of his25 torical and cultural resources within the National Park 


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1 System: Provided further, That $15,000,000 of these 

2 funds shall be transferred to the ‘‘Historic Preservation 

3 Fund’’ for historic preservation projects at historically 

4 black colleges and universities as authorized by the His5 toric Preservation Fund Act of 1996 and the Omnibus 

6 Parks and Public Lands Act of 1996, except that any 

7 matching requirements otherwise required for such 

8 projects are waived: Provided further, That the amount set 

9 aside from this appropriation pursuant to section 1106 of 

10 this Act shall be not more than 5 percent instead of the 

11 percentage specified in such section. 

12 CENTENNIAL CHALLENGE

13 To carry out provisions of section 814(g) of Public 

14 Law 104–333 relating to challenge cost share agreements, 

15 $100,000,000, for National Park Service Centennial Chal16 lenge signature projects and programs: Provided, That not 

17 less than 50 percent of the total cost of each project or 

18 program is derived from non-Federal sources in the form 

19 of donated cash, assets, in-kind services, or a pledge of 

20 donation guaranteed by an irrevocable letter of credit: Pro21 vided further, That the amount set aside from this appro22 priation pursuant to section 1106 of this Act shall be not 

23 more than 5 percent instead of the percentage specified 

24 in such section. 


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1 UNITED STATES GEOLOGICAL SURVEY

2 SURVEYS, INVESTIGATIONS, AND RESEARCH

3 For an additional amount for ‘‘Surveys, Investiga4 tions, and Research’’, $200,000,000, for repair and res5 toration of facilities; equipment replacement and upgrades 

6 including stream gages, and seismic and volcano moni7 toring systems; national map activities; and other critical 

8 deferred maintenance and improvement projects: Pro9 vided, That the amount set aside from this appropriation 

10 pursuant to section 1106 of this Act shall be not more 

11 than 5 percent instead of the percentage specified in such 

12 section. 

13 BUREAU OF INDIAN AFFAIRS

14 CONSTRUCTION

15 (INCLUDING TRANSFER OF FUNDS)

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

17 $500,000,000, for priority repair and replacement of 

18 schools, detention centers, roads, bridges, employee hous19 ing, and critical deferred maintenance projects: Provided, 

20 That not less than $250,000,000 shall be used for new 

21 and replacement schools and detention centers: Provided 

22 further, That funds may be transferred to ‘‘Operation of 

23 Indian Programs’’: Provided further, That the amount set 

24 aside from this appropriation pursuant to section 1106 of 


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1 this Act shall be not more than 5 percent instead of the 

2 percentage specified in such section. 

3 ENVIRONMENTAL PROTECTION AGENCY 

4 HAZARDOUS SUBSTANCE SUPERFUND

5 For an additional amount for ‘‘Hazardous Substance 

6 Superfund’’, $800,000,000, which shall be used for the 

7 Superfund Remedial program: Provided, That amounts 

8 available by law from this appropriation for management 

9 and administration shall take the place of the set-aside 

10 under section 1106 of this Act. 

11 LEAKING UNDERGROUND STORAGE TANK TRUST FUND

12 PROGRAM

13 For an additional amount for ‘‘Leaking Underground 

14 Storage Tank Trust Fund Program’’, to carry out leaking 

15 underground storage tank cleanup activities authorized by 

16 subtitle I of the Solid Waste Disposal Act, $200,000,000, 

17 which shall be used to carry out leaking underground stor18 age tank cleanup activities authorized by section 9003(h) 

19 of the Solid Waste Disposal Act, except that such funds 

20 shall not be subject to the State matching requirements 

21 in section 9003(h)(7)(B): Provided, That amounts avail22 able by law from this appropriation for management and 

23 administration shall take the place of the set-aside under 

24 section 1106 of this Act. 


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1 STATE AND TRIBAL ASSISTANCE GRANTS

2 For an additional amount for ‘‘State and Tribal As3 sistance Grants’’, $8,400,000,000, which shall be used as 

4 follows: 

5 (1) $6,000,000,000 shall be for capitalization 

6 grants for the Clean Water State Revolving Funds 

7 under title VI of the Federal Water Pollution Con8 trol Act (33 U.S.C. 1381 et seq.), except that such 

9 funds shall not be subject to the State matching re10 quirements in paragraphs (2) and (3) of section 

11 602(b) of such Act or to the Federal cost share limi12 tations in section 202 of such Act: Provided, That 

13 the amount set aside from this appropriation pursu14 ant to section 1106 of this Act shall be not more 

15 than 2 percent instead of the percentage specified in 

16 such section: Provided further, That, notwith17 standing the limitation on amounts specified in sec18 tion 518(c) of the Federal Water Pollution Control 

19 Act, up to a total of 1.5 percent of such funds may 

20 be reserved by the Administrator of the Environ21 mental Protection Agency for grants under section 

22 518(c) of such Act: Provided further, That the re23 quirements of section 513 of such Act shall apply to 

24 the construction of treatment works carried out in 

25 whole or in part with assistance made available 


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1 under this heading by a Clean Water State Revolv2 ing Fund under title VI of such Act, or with assist3 ance made available under section 205(m) of such 

4 Act, or both: Provided further, That, notwith5 standing the requirements of section 603(d) of such 

6 Act, each State shall use 50 percent of the amount 

7 of the capitalization grant received by the State 

8 under title VI of such Act to provide assistance, in 

9 the form of additional subsidization, including for10 giveness of principal, negative interest loans, and 

11 grants, to municipalities (as defined in section 502 

12 of such Act) for projects that are included on the 

13 State’s priority list established under section 603(g) 

14 of such Act, of which 80 percent shall be for projects 

15 to benefit municipalities that meet affordability cri16 teria as determined by the Governor of the State 

17 and 20 percent shall be for projects to address 

18 water-efficiency goals, address energy-efficiency 

19 goals, mitigate stormwater runoff, or encourage en20 vironmentally sensitive project planning, design, and 

21 construction, to the extent that there are sufficient 

22 project applications eligible for such assistance. 

23 (2) $2,000,000,000 shall be for capitalization 

24 grants for the Drinking Water State Revolving 

25 Funds under section 1452 of the Safe Drinking 


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1 Water Act (42 U.S.C. 300j–12), except that such 

2 funds shall not be subject to the State matching re3 quirements of section 1452(e) of such Act: Provided, 

4 That the amount set aside from this appropriation 

5 pursuant to section 1106 of this Act shall be not 

6 more than 2 percent instead of the percentage speci7 fied in such section: Provided further, That section 

8 1452(k) of the Safe Drinking Water Act shall not 

9 apply to such funds: Provided further, That the re10 quirements of section 1450(e) of such Act (42 

11 U.S.C. 300j–9(e)) shall apply to the construction 

12 carried out in whole or part with assistance made 

13 available under this heading by a Drinking Water 

14 State Revolving fund under section 1452 of such 

15 Act: Provided further, That, notwithstanding the re16 quirements of section 1452(a)(2) of such Act, each 

17 State shall use 50 percent of the amount of the cap18 italization grant received by the State under section 

19 1452 of such Act to provide assistance, in the form 

20 of additional subsidization, including forgiveness of 

21 principal, negative interest loans, and grants, to mu22 nicipalities (as defined in section 1401 of such Act) 

23 for projects that are included on the State’s priority 

24 list established under section 1452(b)(3) of such 

25 Act. 


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1 (3) $300,000,000 shall be for grants under title 

2 VII, Subtitle G of the Energy Policy Act of 2005: 

3 Provided, That the amount set aside from this ap4 propriation pursuant to section 1106 of this Act 

5 shall be not more than 3 percent instead of the per6 centage specified in such section. 

7 (4) $100,000,000 shall be to carry out section 

8 104(k) of the Comprehensive Environmental Re9 sponse, Compensation, and Liability Act of 1980: 

10 Provided, That the amount set aside from this ap11 propriation pursuant to section 1106 of this Act 

12 shall be not more than 3 percent instead of the per13 centage specified in such section. 

14 DEPARTMENT OF AGRICULTURE 

15 FOREST SERVICE

16 CAPITAL IMPROVEMENT AND MAINTENANCE

17 (INCLUDING TRANSFER OF FUNDS)

18 For an additional amount for ‘‘Capital Improvement 

19 and Maintenance’’, $650,000,000, for reconstruction, cap20 ital improvement, decommissioning, and maintenance of 

21 forest roads, bridges and trails; alternative energy tech22 nologies, energy efficiency enhancements and deferred 

23 maintenance at Federal facilities; and for remediation of 

24 abandoned mine sites, removal of fish passage barriers, 

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1 shed enhancement projects on Federal lands and waters: 

2 Provided, That funds may be transferred to ‘‘National 

3 Forest System’’: Provided further, That the amount set 

4 aside from this appropriation pursuant to section 1106 of 

5 this Act shall be not more than 5 percent instead of the 

6 percentage specified in such section. 

7 WILDLAND FIRE MANAGEMENT

8 (INCLUDING TRANSFERS OF FUNDS)

9 For an additional amount for ‘‘Wildland Fire Man10 agement’’, $850,000,000, of which $300,000,000 is for 

11 hazardous fuels reduction, forest health, wood to energy 

12 grants and rehabilitation and restoration activities on 

13 Federal lands, and of which $550,000,000 is for State fire 

14 assistance hazardous fuels projects, volunteer fire assist15 ance, cooperative forest health projects, city forest en16 hancements, and wood to energy grants on State and pri17 vate lands: Provided, That amounts in this paragraph may 

18 be transferred to ‘‘State and Private Forestry’’ and ‘‘Na19 tional Forest System’’: Provided further, That the amount 

20 set aside from this appropriation pursuant to section 1106 

21 of this Act shall be not more than 5 percent instead of 

22 the percentage specified in such section. 


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1 DEPARTMENT OF HEALTH AND HUMAN 

2 SERVICES 

3 INDIAN HEALTH SERVICE

4 INDIAN HEALTH FACILITIES

5 For an additional amount for ‘‘Indian Health Facili6 ties’’, $550,000,000, for priority health care facilities con7 struction projects and deferred maintenance, and the pur8 chase of equipment and related services, including but not 

9 limited to health information technology: Provided, That 

10 notwithstanding any other provision of law, the amounts 

11 available under this paragraph shall be allocated at the 

12 discretion of the Director of the Indian Health Service: 

13 Provided further, That the amount set aside from this ap14 propriation pursuant to section 1106 of this Act shall be 

15 not more than 5 percent instead of the percentage speci16 fied in such section. 

17 OTHER RELATED AGENCIES 

18 SMITHSONIAN INSTITUTION

19 FACILITIES CAPITAL

20 (INCLUDING TRANSFER OF FUNDS)

21 For an additional amount for ‘‘Facilities Capital’’, 

22 $150,000,000, for deferred maintenance projects, and for 

23 repair, revitalization, and alteration of facilities owned or 

24 occupied by the Smithsonian Institution, by contract or 

25 otherwise, as authorized by section 2 of the Act of August 


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1 22, 1949 (63 Stat. 623): Provided, That funds may be 

2 transferred to ‘‘Salaries and Expenses’’: Provided further, 

3 That the amount set aside from this appropriation pursu4 ant to section 1106 of this Act shall be not more than 

5 5 percent instead of the percentage specified in such sec6 tion. 

7 NATIONAL FOUNDATION ON THE ARTS AND THE

8 HUMANITIES

9 NATIONAL ENDOWMENT FOR THE ARTS

10 GRANTS AND ADMINISTRATION

11 For an additional amount for ‘‘Grants and Adminis12 tration’’, $50,000,000, to be distributed in direct grants 

13 to fund arts projects and activities which preserve jobs in 

14 the non-profit arts sector threatened by declines in philan15 thropic and other support during the current economic 

16 downturn: Provided, That 40 percent of such funds shall 

17 be distributed to State arts agencies and regional arts or18 ganizations in a manner similar to the agency’s current 

19 practice and 60 percent of such funds shall be for competi20 tively selected arts projects and activities according to sec21 tions 2 and 5(c) of the National Foundation on the Arts 

22 and Humanities Act of 1965 (20 U.S.C. 951, 954(c)): 

23 Provided further, That matching requirements under sec24 tion 5(e) of such Act shall be waived: Provided further, 

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1 ant to section 1106 of this Act shall be not more than 

2 5 percent instead of the percentage specified in such sec3 tion. 

4 TITLE IX—LABOR, HEALTH AND 

5 HUMAN SERVICES, AND EDU6 CATION 

7 Subtitle A—Labor 

8 DEPARTMENT OF LABOR 

9 EMPLOYMENT AND TRAINING ADMINISTRATION

10 TRAINING AND EMPLOYMENT SERVICES

11 For an additional amount for ‘‘Training and Employ12 ment Services’’ for activities under the Workforce Invest13 ment Act of 1998 (‘‘WIA’’), $4,000,000,000, which shall 

14 be available for obligation on the date of enactment of this 

15 Act, as follows: 

16 (1) $500,000,000 for grants to the States for 

17 adult employment and training activities. 

18 (2) $1,200,000,000 for grants to the States for 

19 youth activities, including summer jobs for youth: 

20 Provided, That the work readiness performance indi21 cator described in section 136(b)(2)(A)(ii)(I) of the 

22 WIA shall be the only measure of performance used 

23 to assess the effectiveness of summer jobs for youth 

24 provided with such funds: Provided further, That 

25 with respect to the youth activities provided with 


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1 such funds, section 101(13)(A) of the WIA shall be 

2 applied by substituting ‘‘age 24’’ for ‘‘age 21’’: Pro3 vided further, That no portion of the additional 

4 funds provided herein shall be reserved to carry out 

5 section 127(b)(1)(A) of the WIA: Provided further, 

6 That for purposes of section 127(b)(1)(C)(iv) of the 

7 WIA, such funds shall be allotted as if the total 

8 amount of funding available for youth activities in 

9 the fiscal year does not exceed $1,000,000,000. 

10 (3) $1,000,000,000 for grants to the States for 

11 dislocated worker employment and training activi12 ties. 

13 (4) $500,000,000 for the dislocated workers as14 sistance national reserve to remain available for 

15 Federal obligation through June 30, 2010: Provided, 

16 That such funds shall be made available for grants 

17 only to eligible entities that serve areas of high un18 employment or high poverty and only for the pur19 poses described in subsection 173(a)(1) of the WIA: 

20 Provided further, That the Secretary of Labor shall 

21 ensure that applicants for such funds demonstrate 

22 how income support, child care, and other supportive 

23 services necessary for an individual’s participation in 

24 job training will be provided. 


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1 (5) $50,000,000 for YouthBuild activities, 

2 which shall remain available for Federal obligation 

3 through June 30, 2010. 

4 (6) $750,000,000 for a program of competitive 

5 grants for worker training and placement in high 

6 growth and emerging industry sectors (including 

7 projects funded under section 6002 of division B of 

8 this Act): Provided, That $500,000,000 shall be for 

9 research, labor exchange and job training projects 

10 that prepare workers for careers in the energy effi11 ciency and renewable energy industries specified in 

12 section 171(e)(1)(B)(ii) of the WIA (as amended by 

13 the Green Jobs Act of 2007): Provided further, That 

14 in awarding grants from those funds not designated 

15 in the preceding proviso, the Secretary of Labor 

16 shall give priority to projects that prepare workers 

17 for careers in the health care sector: Provided fur18 ther, That the provisions of section 1103 of this Act 

19 shall not apply to this appropriation: 

20 Provided, That the additional funds provided to States 

21 under this heading are not subject to section 191(a) of 

22 the WIA: Provided further, That notwithstanding section 

23 1106 of this Act, there shall be no amount set aside from 

24 the appropriations made in subsections (1) through (3) 

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1 sections (4) through (6) shall be up to 1 percent instead 

2 of the percentage specified in such section. 

3 COMMUNITY SERVICE EMPLOYMENT FOR OLDER

4 AMERICANS

5 For an additional amount for ‘‘Community Service 

6 Employment for Older Americans’’ to carry out title V of 

7 the Older Americans Act of 1965, $120,000,000, which 

8 shall be available for obligation on the date of enactment 

9 of this Act: Provided, That funds shall be allotted within 

10 30 days of such enactment to current grantees in propor11 tion to their allotment in program year 2008. 

12 STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT

13 SERVICE OPERATIONS

14 For an additional amount for ‘‘State Unemployment 

15 Insurance and Employment Service Operations’’ for 

16 grants to the States in accordance with section 6 of the 

17 Wagner-Peyser Act, $500,000,000, which may be ex18 pended from the Employment Security Administration Ac19 count in the Unemployment Trust Fund, and which shall 

20 be available for obligation on the date of enactment of this 

21 Act: Provided, That such funds shall remain available to 

22 the States through September 30, 2010: Provided further, 

23 That, with respect to such funds, section 6(b)(1) of such 

24 Act shall be applied by substituting ‘‘one-third’’ for ‘‘two25 thirds’’ in subparagraph (A), with the remaining one-third 


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1 of the sums to be allotted in accordance with section 

2 132(b)(2)(B)(ii)(III) of the Workforce Investment Act of 

3 1998: Provided further, That not less than $250,000,000 

4 of the amount provided under this heading shall be used 

5 by States for reemployment services for unemployment in6 surance claimants (including the integrated Employment 

7 Service and Unemployment Insurance information tech8 nology required to identify and serve the needs of such 

9 claimants): Provided further, That the Secretary of Labor 

10 shall establish planning and reporting procedures nec11 essary to provide oversight of funds used for reemploy12 ment services. 

13 DEPARTMENTAL MANAGEMENT

14 SALARIES AND EXPENSES

15 (INCLUDING TRANSFER OF FUNDS)

16 For an additional amount for ‘‘Departmental Man17 agement’’, $80,000,000, for the enforcement of worker 

18 protection laws and regulations, oversight, and coordina19 tion activities related to the infrastructure and unemploy20 ment insurance investments in this Act: Provided, That 

21 the Secretary of Labor may transfer such sums as nec22 essary to ‘‘Employment and Standards Administration’’, 

23 ‘‘Occupational Safety and Health Administration’’, and 

24 ‘‘Employment and Training Administration—Program 

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1 tion activities: Provided further, That the provisions of sec2 tion 1106 of this Act shall not apply to this appropriation. 

3 OFFICE OF JOB CORPS

4 For an additional amount for ‘‘Office of Job Corps’’, 

5 $300,000,000, for construction, rehabilitation and acquisi6 tion of Job Corps Centers, which shall be available upon 

7 the date of enactment of this Act and remain available 

8 for obligation through June 30, 2010: Provided, That sec9 tion 1552(a) of title 31, United States Code shall not 

10 apply to up to 30 percent of such funds, if such funds 

11 are used for a multi-year lease agreement that will result 

12 in construction activities that can commence within 120 

13 days of enactment of this Act: Provided further, That not14 withstanding section 3324(a) of title 31, United States 

15 Code, the funds referred to in the preceding proviso may 

16 be used for advance, progress, and other payments: Pro17 vided further, That the Secretary of Labor may transfer 

18 up to 15 percent of such funds to meet the operational 

19 needs of such centers, which may include the provision of 

20 additional training for careers in the energy efficiency and 

21 renewable energy industries: Provided further, That pri22 ority should be given to activities that can commence 

23 promptly following enactment and to those projects that 

24 will create the greatest impact on the energy efficiency of 

25 Job Corps facilities: Provided further, That the Secretary 


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1 shall provide to the Committees on Appropriations of the 

2 House of Representatives and the Senate a report on the 

3 actual obligations, expenditures, and unobligated balances 

4 for each activity funded under this heading not later than 

5 September 30, 2009 and quarterly thereafter as long as 

6 funding provided under this heading is available for obli7 gation or expenditure. 

8 GENERAL PROVISIONS, THIS SUBTITLE 

9 SEC. 9101. ELIGIBLE EMPLOYEES IN THE RECREATIONAL 

10 MARINE INDUSTRY. 

11 Section 2(3)(F) of the Longshore and Harbor Work12 ers’ Compensation Act (33 U.S.C. 902(3)(F)) is amend13 ed— 

14 (1) by striking ‘‘, repair, or dismantle’’; and 

15 (2) by striking the semicolon and inserting ‘‘, or 

16 individuals employed to repair any recreational ves17 sel, or to dismantle any part of a recreational vessel 

18 in connection with the repair of such vessel;’’. 

19 Subtitle B—Health and Human 

20 Services 

21 DEPARTMENT OF HEALTH AND HUMAN 

22 SERVICES 

23 HEALTH RESOURCES AND SERVICES

24 For an additional amount for ‘‘Health Resources and 

25 Services’’, $2,188,000,000 which shall be used as follows: 


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1 (1) $500,000,000, of which $250,000,000 shall 

2 not be available until October 1, 2009, shall be for 

3 grants to health centers authorized under section 

4 330 of the Public Health Service Act (‘‘PHS Act’’). 

5 (2) $1,000,000,000 shall be available for ren6 ovation and repair of health centers authorized 

7 under section 330 of the PHS Act and for the acqui8 sition by such centers of health information tech9 nology systems: Provided, That the timeframe for 

10 the award of grants pursuant to section 1103(b) of 

11 this Act shall not be later than 180 days after the 

12 date of enactment of this Act instead of the time13 frame specified in such section. 

14 (3) $88,000,000 shall be for fit-out and other 

15 costs related to moving into a facility to be secured 

16 through a competitive lease procurement to replace 

17 or renovate a headquarters building for Public 

18 Health Service agencies and other components of the 

19 Department of Health and Human Services. 

20 (4) $600,000,000, of which $300,000,000 shall 

21 not be available until October 1, 2009, shall be for 

22 the training of nurses and primary care physicians 

23 and dentists as authorized under titles VII and VIII 

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1 gram authorized under title III of the PHS Act, and 

2 for the patient navigator program authorized under 

3 title III of the PHS Act. 

4 CENTERS FOR DISEASE CONTROL AND PREVENTION

5 DISEASE CONTROL, RESEARCH, AND TRAINING

6 For an additional amount for ‘‘Disease Control, Re7 search, and Training’’ for equipment, construction, and 

8 renovation of facilities, including necessary repairs and 

9 improvements to leased laboratories, $462,000,000: Pro10 vided, That notwithstanding any other provision of law, 

11 the Centers for Disease Control and Prevention may 

12 award a single contract or related contracts for develop13 ment and construction of facilities that collectively include 

14 the full scope of the project: Provided further, That the 

15 solicitation and contract shall contain the clause ‘‘avail16 ability of funds’’ found at 48 CFR 52.232–18: Provided 

17 further, That in accordance with applicable authorities, 

18 policies, and procedures, the Centers for Disease Control 

19 and Prevention shall acquire real property, and make any 

20 necessary improvements thereon, to relocate and consoli21 date property and facilities of the National Institute for 

22 Occupational Safety and Health. 


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1 NATIONAL INSTITUTES OF HEALTH

2 NATIONAL CENTER FOR RESEARCH RESOURCES

3 For an additional amount for ‘‘National Center for 

4 Research Resources’’, $1,500,000,000 for grants or con5 tracts under section 481A of the Public Health Service 

6 Act to renovate or repair existing non-Federal research fa7 cilities: Provided, That sections 481A(c)(1)(B)(ii), para8 graphs (1), (3), and (4) of section 481A(e), and section 

9 481B of such Act shall not apply to the use of such funds: 

10 Provided further, That the references to ‘‘20 years’’ in sub11 sections (c)(1)(B)(i) and (f) of section 481A of such Act 

12 are deemed to be references to ‘‘10 years’’ for purposes 

13 of using such funds: Provided further, That the National 

14 Center for Research Resources may also use such funds 

15 to provide, under the authority of section 301 and title 

16 IV of such Act, shared instrumentation and other capital 

17 research equipment to recipients of grants and contracts 

18 under section 481A of such Act and other appropriate en19 tities: Provided further, That the Director of the Center 

20 shall provide to the Committees on Appropriations of the 

21 House of Representatives and the Senate an annual report 

22 indicating the number of institutions receiving awards of 

23 a grant or contract under section 481A of such Act, the 

24 proposed use of the funding, the average award size, a 

25 list of grant or contract recipients, and the amount of each 


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1 award: Provided further, That the Center, in obligating 

2 such funds, shall require that each entity that applies for 

3 a grant or contract under section 481A for any project 

4 shall include in its application an assurance described in 

5 section 1621(b)(1)(I) of the Public Health Service Act: 

6 Provided further, That the Center shall give priority in the 

7 award of grants and contracts under section 481A of such 

8 Act to those applications that are expected to generate de9 monstrable energy-saving or beneficial environmental ef10 fects: Provided further, That the provisions of section 1103 

11 of this Act shall not apply to the peer-reviewed grants 

12 awarded under this heading. 

13 OFFICE OF THE DIRECTOR

14 (INCLUDING TRANSFER OF FUNDS)

15 For an additional amount for ‘‘Office of the Direc16 tor’’, $1,500,000,000, of which $750,000,000 shall not be 

17 available until October 1, 2009: Provided, That such funds 

18 shall be transferred to the Institutes and Centers of the 

19 National Institutes of Health and to the Common Fund 

20 established under section 402A(c)(1) of the Public Health 

21 Service Act in proportion to the appropriations otherwise 

22 made to such Institutes, Centers, and Common Fund for 

23 fiscal year 2009: Provided further, That these funds shall 

24 be used to support additional scientific research and shall 

25 be merged with and be available for the same purposes 


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1 as the appropriation or fund to which transferred: Pro2 vided further, That this transfer authority is in addition 

3 to any other transfer authority available to the National 

4 Institutes of Health: Provided further, That none of these 

5 funds may be transferred to ‘‘National Institutes of 

6 Health—Buildings and Facilities’’, the Center for Sci7 entific Review, the Center for Information Technology, the 

8 Clinical Center, the Global Fund for HIV/AIDS, Tuber9 culosis and Malaria, or the Office of the Director (except 

10 for the transfer to the Common Fund): Provided further, 

11 That the provisions of section 1103 of this Act shall not 

12 apply to the peer-reviewed grants awarded under this 

13 heading. 

14 BUILDINGS AND FACILITIES

15 For an additional amount for ‘‘Buildings and Facili16 ties’’, $500,000,000, to fund high priority repair and im17 provement projects for National Institutes of Health facili18 ties on the Bethesda, Maryland campus and other agency 

19 locations. 

20 AGENCY FOR HEALTHCARE RESEARCH AND QUALITY

21 HEALTHCARE RESEARCH AND QUALITY

22 (INCLUDING TRANSFER OF FUNDS)

23 For an additional amount for ‘‘Healthcare Research 

24 and Quality’’ to carry out titles III and IX of the Public 

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1 rity Act, and section 1013 of the Medicare Prescription 

2 Drug, Improvement, and Modernization Act of 2003, 

3 $700,000,000 for comparative effectiveness research: Pro4 vided, That of the amount appropriated in this paragraph, 

5 $400,000,000 shall be transferred to the Office of the Di6 rector of the National Institutes of Health (‘‘Office of the 

7 Director’’) to conduct or support comparative effectiveness 

8 research: Provided further, That funds transferred to the 

9 Office of the Director may be transferred to the national 

10 research institutes and national centers of the National 

11 Institutes of Health and to the Common Fund established 

12 under section 402A(c)(1) of the Public Health Service Act: 

13 Provided further, That this transfer authority is in addi14 tion to any other transfer authority available to the Na15 tional Institutes of Health: Provided further, That the pro16 visions of section 1103 of this Act shall not apply to the 

17 peer-reviewed grants awarded under this paragraph: Pro18 vided further, That the amount set aside from this appro19 priation pursuant to section 1106 of this Act shall be not 

20 more than 1 percent instead of the percentage specified 

21 in such section. 

22 In addition, $400,000,000 shall be available for com23 parative effectiveness research to be allocated at the dis24 cretion of the Secretary of Health and Human Services 

25 (‘‘Secretary’’): Provided, That the funding appropriated in 


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1 this paragraph shall be used to accelerate the development 

2 and dissemination of research assessing the comparative 

3 effectiveness of health care treatments and strategies, in4 cluding through efforts that: (1) conduct, support, or syn5 thesize research that compares the clinical outcomes, ef6 fectiveness, and appropriateness of items, services, and 

7 procedures that are used to prevent, diagnose, or treat dis8 eases, disorders, and other health conditions; and (2) en9 courage the development and use of clinical registries, clin10 ical data networks, and other forms of electronic health 

11 data that can be used to generate or obtain outcomes data: 

12 Provided further, That the Secretary shall enter into a 

13 contract with the Institute of Medicine, for which no more 

14 than $1,500,000 shall be made available from funds pro15 vided in this paragraph, to produce and submit a report 

16 to the Congress and the Secretary by not later than June 

17 30, 2009, that includes recommendations on the national 

18 priorities for comparative effectiveness research to be con19 ducted or supported with the funds provided in this para20 graph and that considers input from stakeholders: Pro21 vided further, That the Secretary shall consider any rec22 ommendations of the Federal Coordinating Council for 

23 Comparative Effectiveness Research established by section 

24 9201 of this Act and any recommendations included in 

25 the Institute of Medicine report pursuant to the preceding 


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1 proviso in designating activities to receive funds provided 

2 in this paragraph and may make grants and contracts 

3 with appropriate entities, which may include agencies 

4 within the Department of Health and Human Services and 

5 other governmental agencies, as well as private sector enti6 ties, that have demonstrated experience and capacity to 

7 achieve the goals of comparative effectiveness research: 

8 Provided further, That the Secretary shall publish infor9 mation on grants and contracts awarded with the funds 

10 provided under this heading within a reasonable time of 

11 the obligation of funds for such grants and contracts and 

12 shall disseminate research findings from such grants and 

13 contracts to clinicians, patients, and the general public, 

14 as appropriate: Provided further, That, to the extent fea15 sible, the Secretary shall ensure that the recipients of the 

16 funds provided by this paragraph offer an opportunity for 

17 public comment on the research: Provided further, That 

18 the provisions of section 1103 of this Act shall not apply 

19 to the peer-reviewed grants awarded under this paragraph: 

20 Provided further, That the Secretary shall provide the 

21 Committees on Appropriations of the House of Represent22 atives and the Senate, the Committee on Energy and Com23 merce and the Committee on Ways and Means of the 

24 House of Representatives, and the Committee on Health, 

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1 nance of the Senate with an annual report on the research 

2 conducted or supported through the funds provided under 

3 this heading: Provided further, That the Secretary, jointly 

4 with the Directors of the Agency for Healthcare Research 

5 and Quality and the National Institutes of Health, shall 

6 provide the Committees on Appropriations of the House 

7 of Representatives and the Senate a fiscal year 2009 oper8 ating plan for the funds appropriated under this heading 

9 prior to making any Federal obligations of such funds in 

10 fiscal year 2009, but not later than 90 days after the date 

11 of enactment of this Act, and a fiscal year 2010 operating 

12 plan for such funds prior to making any Federal obliga13 tions of such funds in fiscal year 2010, but not later than 

14 November 1, 2009, that detail the type of research being 

15 conducted or supported, including the priority conditions 

16 addressed; and specify the allocation of resources within 

17 the Department of Health and Human Services: Provided 

18 further, That the Secretary jointly with the Directors of 

19 the Agency for Healthcare Research and Quality and the 

20 National Institutes of Health, shall provide to the Com21 mittees on Appropriations of the House of Representatives 

22 and the Senate a report on the actual obligations, expendi23 tures, and unobligated balances for each activity funded 

24 under this heading not later than November 1, 2009, and 

25 every 6 months thereafter as long as funding provided 


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1 under this heading is available for obligation or expendi2 ture. 

3 ADMINISTRATION FOR CHILDREN AND FAMILIES

4 LOW-INCOME HOME ENERGY ASSISTANCE

5 For an additional amount for ‘‘Low-Income Home 

6 Energy Assistance’’ for making payments under section 

7 2602(b) and section 2602(d) of the Low-Income Home 

8 Energy Assistance Act of 1981, $1,000,000,000, which 

9 shall become available on October 1, 2009: Provided, That 

10 the provisions of section 1106 of this Act shall not apply 

11 to this appropriation. 

12 PAYMENTS TO STATES FOR THE CHILD CARE AND

13 DEVELOPMENT BLOCK GRANT

14 For an additional amount for ‘‘Payments to States 

15 for the Child Care and Development Block Grant’’, 

16 $2,000,000,000, of which $1,000,000,000 shall become 

17 available on October 1, 2009, which shall be used to sup18 plement, not supplant State general revenue funds for 

19 child care assistance for low-income families: Provided, 

20 That the provisions of section 1106 of this Act shall not 

21 apply to this appropriation. 

22 CHILDREN AND FAMILIES SERVICES PROGRAMS

23 For an additional amount for ‘‘Children and Families 

24 Services Programs’’, $3,200,000,000, which shall be used 

25 as follows: 


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1 (1) $1,000,000,000 for carrying out activities 

2 under the Head Start Act, of which $500,000,000 

3 shall become available on October 1, 2009. 

4 (2) $1,100,000,000 for expansion of Early 

5 Head Start programs, as described in section 645A 

6 of the Head Start Act, of which $550,000,000 shall 

7 become available on October 1, 2009: Provided, That 

8 of the funds provided in this sentence, up to 10 per9 cent shall be available for the provision of training 

10 and technical assistance to such programs consistent 

11 with section 645A(g)(2) of such Act, and up to 3 

12 percent shall be available for monitoring the oper13 ation of such programs consistent with section 641A 

14 of such Act: Provided further, That the preceding 

15 proviso shall apply to this appropriation in lieu of 

16 the provisions of section 1106 of this Act: Provided 

17 further, That the provisions of section 1103 of this 

18 Act shall not apply to this appropriation. 

19 (3) $1,000,000,000 for carrying out activities 

20 under sections 674 through 679 of the Community 

21 Services Block Grant Act, of which $500,000,000 

22 shall become available on October 1, 2009, and of 

23 which no part shall be subject to paragraphs (2) and 

24 (3) of section 674(b) of such Act: Provided, That 

25 notwithstanding section 675C(a)(1) of such Act, 100 


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1 percent of the funds made available to a State from 

2 this additional amount shall be distributed to eligible 

3 entities as defined in section 673(1) of such Act: 

4 Provided further, That for services furnished under 

5 such Act during fiscal years 2009 and 2010, States 

6 may apply the last sentence of section 673(2) of 

7 such Act by substituting ‘‘200 percent’’ for ‘‘125 

8 percent’’: Provided further, That the provisions of 

9 section 1106 of this Act shall not apply to this ap10 propriation. 

11 (4) $100,000,000 for carrying out activities 

12 under section 1110 of the Social Security Act, of 

13 which $50,000,000 shall become available on Octo14 ber 1, 2009: Provided, That the Secretary of Health 

15 and Human Services shall distribute such amount 

16 under the Compassion Capital Fund to eligible faith17 based and community organizations: Provided fur18 ther, That the provisions of section 1106 of this Act 

19 shall not apply to this appropriation. 

20 ADMINISTRATION ON AGING

21 AGING SERVICES PROGRAMS

22 For an additional amount for ‘‘Aging Services Pro23 grams’’ under section 311, and subparts 1 and 2 of part 

24 C, of title III of the Older Americans Act of 1965, 

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1 able on October 1, 2009: Provided, That the provisions 

2 of section 1106 of this Act shall not apply to this appro3 priation. 

4 OFFICE OF THE SECRETARY

5 OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH

6 INFORMATION TECHNOLOGY

7 (INCLUDING TRANSFER OF FUNDS)

8 For an additional amount for ‘‘Office of the National 

9 Coordinator for Health Information Technology’’ to carry 

10 out section 9202 of this Act, $2,000,000,000, to remain 

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

12 the Secretary of Health and Human Services shall trans13 fer $20,000,000 to the Director of the National Institute 

14 of Standards and Technology in the Department of Com15 merce for continued work on advancing health care infor16 mation enterprise integration through activities such as 

17 technical standards analysis and establishment of con18 formance testing infrastructure, so long as such activities 

19 are coordinated with the Office of the National Coordi20 nator for Health Information Technology: Provided fur21 ther, That the provisions of section 1103 of this Act shall 

22 not apply to this appropriation: Provided further, That the 

23 amount set aside from this appropriation pursuant to sec24 tion 1106 of this Act shall be 0.25 percent instead of the 

25 percentage specified in such section: Provided further, 


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1 That funds available under this heading shall become 

2 available for obligation only upon submission of an annual 

3 operating plan by the Secretary to the Committees on Ap4 propriations of the House of Representatives and the Sen5 ate: Provided further, That the fiscal year 2009 operating 

6 plan shall be provided not later than 90 days after enact7 ment of this Act and that subsequent annual operating 

8 plans shall be provided not later than November 1 of each 

9 year: Provided further, That these operating plans shall 

10 describe how expenditures are aligned with the specific ob11 jectives, milestones, and metrics of the Federal Health In12 formation Technology Strategic Plan, including any subse13 quent updates to the Plan; the allocation of resources 

14 within the Department of Health and Human Services and 

15 other Federal agencies; and the identification of programs 

16 and activities that are supported: Provided further, That 

17 the Secretary shall provide to the Committees on Appro18 priations of the House of Representatives and the Senate 

19 a report on the actual obligations, expenditures, and unob20 ligated balances for each major set of activities not later 

21 than November 1, 2009, and every 6 months thereafter 

22 as long as funding provided under this heading is available 

23 for obligation or expenditure: Provided further, That the 

24 Comptroller General of the United States shall review on 

25 an annual basis the expenditures from funds provided 


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1 under this heading to determine if such funds are used 

2 in a manner consistent with the purpose and requirements 

3 under this heading. 

4 PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY

5 FUND

6 (INCLUDING TRANSFER OF FUNDS)

7 For an additional amount for ‘‘Public Health and So8 cial Services Emergency Fund’’ to support advanced re9 search and development pursuant to section 319L of the 

10 Public Health Service Act, $430,000,000: Provided, That 

11 the provisions of section 1103 of this Act shall not apply 

12 to this appropriation. 

13 For an additional amount for ‘‘Public Health and So14 cial Services Emergency Fund’’ to prepare for and re15 spond to an influenza pandemic, including the develop16 ment and purchase of vaccine, antivirals, necessary med17 ical supplies, diagnostics, and other surveillance tools, 

18 $420,000,000: Provided, That the provisions of section 

19 1103 of this Act shall not apply to this appropriation: Pro20 vided further, That products purchased with these funds 

21 may, at the discretion of the Secretary of Health and 

22 Human Services (‘‘Secretary’’), be deposited in the Stra23 tegic National Stockpile: Provided further, That notwith24 standing section 496(b) of the Public Health Service Act, 

25 funds may be used for the construction or renovation of 


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1 privately owned facilities for the production of pandemic 

2 influenza vaccine and other biologics, where the Secretary 

3 finds such a contract necessary to secure sufficient sup4 plies of such vaccines or biologics: Provided further, That 

5 funds appropriated in this paragraph may be transferred 

6 to other appropriation accounts of the Department of 

7 Health and Human Services, as determined by the Sec8 retary to be appropriate, to be used for the purposed speci9 fied in this sentence. 

10 For an additional amount for ‘‘Public Health and So11 cial Services Emergency Fund’’ to improve information 

12 technology security at the Department of Health and 

13 Human Services, $50,000,000: Provided, That the Sec14 retary shall prepare and submit a report by not later than 

15 November 1, 2009, and by not later than 15 days after 

16 the end of each month thereafter, updating the status of 

17 actions taken and funds obligated in this and previous ap18 propriations Acts for pandemic influenza preparedness 

19 and response activities, biomedical advanced research and 

20 development activities, Project BioShield, and Cyber Secu21 rity. 

22 PREVENTION AND WELLNESS FUND

23 (INCLUDING TRANSFER OF FUNDS)

24 For necessary expenses for a ‘‘Prevention and 

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1 ment of Health and Human Services Office of the Sec2 retary, $3,000,000,000: Provided, That the provisions of 

3 section 1103 of this Act shall not apply to this appropria4 tion: Provided further, That of the amount appropriated 

5 under this heading not less than $2,350,000,000 shall be 

6 transferred to the Centers for Disease Control and Pre7 vention as follows: 

8 (1) Not less than $954,000,000 shall be used as 

9 an additional amount to carry out the immunization 

10 program authorized by section 317(a), (j), and 

11 (k)(1) of the Public Health Service Act (‘‘section 

12 317 immunization program’’), of which 

13 $649,900,000 shall be available on October 1, 2009. 

14 (2) Not less than $296,000,000 shall be used as 

15 an additional amount to carry out Part A of title 

16 XIX of the Public Health Service Act, of which 

17 $148,000,000 shall be available on October 1, 2009. 

18 (3) Not less than $545,000,000 shall be used as 

19 an additional amount to carry out chronic disease, 

20 health promotion, and genomics programs, as jointly 

21 determined by the Secretary of Health and Human 

22 Services (‘‘Secretary’’) and the Director of the Cen23 ters for Disease Control and Prevention (‘‘Direc24 tor’’). 


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1 (4) Not less than $335,000,000 shall be used as 

2 an additional amount to carry out domestic HIV/ 

3 AIDS, viral hepatitis, sexually-transmitted diseases, 

4 and tuberculosis prevention programs, as jointly de5 termined by the Secretary and the Director. 

6 (5) Not less than $60,000,000 shall be used as 

7 an additional amount to carry out environmental 

8 health programs, as jointly determined by the Sec9 retary and the Director. 

10 (6) Not less than $50,000,000 shall be used as 

11 an additional amount to carry out injury prevention 

12 and control programs, as jointly determined by the 

13 Secretary and the Director. 

14 (7) Not less than $30,000,000 shall be used as 

15 an additional amount for public health workforce de16 velopment activities, as jointly determined by the 

17 Secretary and the Director. 

18 (8) Not less than $40,000,000 shall be used as 

19 an additional amount for the National Institute for 

20 Occupational Safety and Health to carry out re21 search activities within the National Occupational 

22 Research Agenda. 

23 (9) Not less than $40,000,000 shall be used as 

24 an additional amount for the National Center for 

25 Health Statistics: 


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1 Provided further, That of the amount appropriated under 

2 this heading not less than $150,000,000 shall be available 

3 for an additional amount to carry out activities to imple4 ment a national action plan to prevent healthcare-associ5 ated infections, as determined by the Secretary, of which 

6 not less $50,000,000 shall be provided to States to imple7 ment healthcare-associated infection reduction strategies: 

8 Provided further, That of the amount appropriated under 

9 this heading $500,000,000 shall be used to carry out evi10 dence-based clinical and community-based prevention and 

11 wellness strategies and public health workforce develop12 ment activities authorized by the Public Health Service 

13 Act, as determined by the Secretary, that deliver specific, 

14 measurable health outcomes that address chronic and in15 fectious disease rates and health disparities, which shall 

16 include evidence-based interventions in obesity, diabetes, 

17 heart disease, cancer, tobacco cessation and smoking pre18 vention, and oral health, and which may be used for the 

19 Healthy Communities program administered by the Cen20 ters for Disease Control and Prevention and other existing 

21 community-based programs administered by the Depart22 ment of Health and Human Services: Provided further, 

23 That funds appropriated in the preceding proviso may be 

24 transferred to other appropriation accounts of the Depart25 ment of Health and Human Services, as determined by 


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1 the Secretary to be appropriate: Provided further, That the 

2 Secretary shall, directly or through contracts with public 

3 or private entities, provide for annual evaluations of pro4 grams carried out with funds provided under this heading 

5 in order to determine the quality and effectiveness of the 

6 programs: Provided further, That the Secretary shall, not 

7 later than 1 year after the date of enactment of this Act, 

8 submit to the Committees on Appropriations of the House 

9 of Representatives and the Senate, the Committee on En10 ergy and Commerce of the House of Representatives, and 

11 the Committee on Health, Education, Labor, and Pen12 sions of the Senate, a report: (1) summarizing the annual 

13 evaluations of programs from the preceding proviso; and 

14 (2) making recommendations concerning future spending 

15 on prevention and wellness activities, including any rec16 ommendations made by the United States Preventive 

17 Services Task Force in the area of clinical preventive serv18 ices and the Task Force on Community Preventive Serv19 ices in the area of community preventive services: Provided 

20 further, That the Secretary shall enter into a contract with 

21 the Institute of Medicine, for which no more than 

22 $1,500,000 shall be made available from funds provided 

23 in this paragraph, to produce and submit a report to the 

24 Congress and the Secretary by no later than 1 year after 

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1 ommendations on the national priorities for clinical and 

2 community-based prevention and wellness activities that 

3 will have a positive impact in preventing illness or reduc4 ing healthcare costs and that considers input from stake5 holders: Provided further, That the Secretary shall provide 

6 to the Committees on Appropriations of the House of Rep7 resentatives and the Senate a fiscal year 2009 operating 

8 plan for the Prevention and Wellness Fund prior to mak9 ing any Federal obligations of funds provided under this 

10 heading in fiscal year 2009 (excluding funds to carry out 

11 the section 317 immunization program), but not later than 

12 90 days after the date of enactment of this Act, and a 

13 fiscal year 2010 operating plan for the Prevention and 

14 Wellness Fund prior to making any Federal obligations 

15 of funds provided under this heading in fiscal year 2010 

16 (excluding funds to carry out the section 317 immuniza17 tion program), but not later than November 1, 2009, that 

18 indicate the prevention priorities to be addressed; provide 

19 measurable goals for each prevention priority; detail the 

20 allocation of resources within the Department of Health 

21 and Human Services; and identify which programs or ac22 tivities are supported, including descriptions of any new 

23 programs or activities: Provided further, That the Sec24 retary shall provide to the Committees on Appropriations 

25 of the House of Representatives and the Senate a report 


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1 on the actual obligations, expenditures, and unobligated 

2 balances for each activity funded under this heading not 

3 later than November 1, 2009, and every 6 months there4 after as long as funding provided under this heading is 

5 available for obligation or expenditure. 

6 GENERAL PROVISIONS, THIS SUBTITLE 

7 SEC. 9201. FEDERAL COORDINATING COUNCIL FOR COM8 PARATIVE EFFECTIVENESS RESEARCH. 

9 (a) ESTABLISHMENT.—There is hereby established a 

10 Federal Coordinating Council for Comparative Effective11 ness Research (in this section referred to as the ‘‘Coun12 cil’’). 

13 (b) PURPOSE; DUTIES.—The Council shall— 

14 (1) assist the offices and agencies of the Fed15 eral Government, including the Departments of 

16 Health and Human Services, Veterans Affairs, and 

17 Defense, and other Federal departments or agencies, 

18 to coordinate the conduct or support of comparative 

19 effectiveness and related health services research; 

20 and 

21 (2) advise the President and Congress on— 

22 (A) strategies with respect to the infra23 structure needs of comparative effectiveness re24 search within the Federal Government; 


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1 (B) appropriate organizational expendi2 tures for comparative effectiveness research by 

3 relevant Federal departments and agencies; and 

4 (C) opportunities to assure optimum co5 ordination of comparative effectiveness and re6 lated health services research conducted or sup7 ported by relevant Federal departments and 

8 agencies, with the goal of reducing duplicative 

9 efforts and encouraging coordinated and com10 plementary use of resources. 

11 (c) MEMBERSHIP.— 

12 (1) NUMBER AND APPOINTMENT.—The Council 

13 shall be composed of not more than 15 members, all 

14 of whom are senior Federal officers or employees 

15 with responsibility for health-related programs, ap16 pointed by the President, acting through the Sec17 retary of Health and Human Services (in this sec18 tion referred to as the ‘‘Secretary’’). Members shall 

19 first be appointed to the Council not later than 30 

20 days after the date of the enactment of this Act. 

21 (2) MEMBERS.— 

22 (A) IN GENERAL.—The members of the 

23 Council shall include one senior officer or em24 ployee from each of the following agencies: 


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1 (i) The Agency for Healthcare Re2 search and Quality. 

3 (ii) The Centers for Medicare and 

4 Medicaid Services. 

5 (iii) The National Institutes of 

6 Health. 

7 (iv) The Office of the National Coor8 dinator for Health Information Tech9 nology. 

10 (v) The Food and Drug Administra11 tion. 

12 (vi) The Veterans Health Administra13 tion within the Department of Veterans 

14 Affairs. 

15 (vii) The office within the Department 

16 of Defense responsible for management of 

17 the Department of Defense Military 

18 Health Care System. 

19 (B) QUALIFICATIONS.—At least half of the 

20 members of the Council shall be physicians or 

21 other experts with clinical expertise. 

22 (3) CHAIRMAN; VICE CHAIRMAN.—The Sec23 retary shall serve as Chairman of the Council and 

24 shall designate a member to serve as Vice Chairman. 

25 (d) REPORTS.— 


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1 (1) INITIAL REPORT.—Not later than June 30, 

2 2009, the Council shall submit to the President and 

3 the Congress a report containing information de4 scribing Federal activities on comparative effective5 ness research and recommendations for additional 

6 investments in such research conducted or supported 

7 from funds made available for allotment by the Sec8 retary for comparative effectiveness research in this 

9 Act. 

10 (2) ANNUAL REPORT.—The Council shall sub11 mit to the President and Congress an annual report 

12 regarding its activities and recommendations con13 cerning the infrastructure needs, appropriate organi14 zational expenditures and opportunities for better 

15 coordination of comparative effectiveness research by 

16 relevant Federal departments and agencies. 

17 (e) STAFFING; SUPPORT.—From funds made avail18 able for allotment by the Secretary for comparative effec19 tiveness research in this Act, the Secretary shall make 

20 available not more than 1 percent to the Council for staff 

21 and administrative support. 

22 SEC. 9202. INVESTMENT IN HEALTH INFORMATION TECH23 NOLOGY. 

24 (a) IN GENERAL.—The Secretary of Health and 

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1 essary to allow for and promote the electronic exchange 

2 and use of health information for each individual in the 

3 United States consistent with the goals outlined in the 

4 Strategic Plan developed by the Office of the National Co5 ordinator for Health Information Technology. Such invest6 ment shall include investment in at least the following: 

7 (1) Health information technology architecture 

8 that will support the nationwide electronic exchange 

9 and use of health information in a secure, private, 

10 and accurate manner, including connecting health 

11 information exchanges, and which may include up12 dating and implementing the infrastructure nec13 essary within different agencies of the Department 

14 of Health and Human Services to support the elec15 tronic use and exchange of health information. 

16 (2) Integration of health information tech17 nology, including electronic medical records, into the 

18 initial and ongoing training of health professionals 

19 and others in the healthcare industry who would be 

20 instrumental to improving the quality of healthcare 

21 through the smooth and accurate electronic use and 

22 exchange of health information as determined by the 

23 Secretary. 

24 (3) Training on and dissemination of informa25 tion on best practices to integrate health information 


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1 technology, including electronic records, into a pro2 vider’s delivery of care, including community health 

3 centers receiving assistance under section 330 of the 

4 Public Health Service Act and providers partici5 pating in one or more of the programs under titles 

6 XVIII, XIX, and XXI of the Social Security Act (re7 lating to Medicare, Medicaid, and the State Chil8 dren’s Health Insurance Program). 

9 (4) Infrastructure and tools for the promotion 

10 of telemedicine, including coordination among Fed11 eral agencies in the promotion of telemedicine. 

12 (5) Promotion of the interoperability of clinical 

13 data repositories or registries. 

14 The Secretary shall implement paragraph (3) in coordina15 tion with State agencies administering the Medicaid pro16 gram and the State Children’s Health Insurance Program. 

17 (b) LIMITATION.—None of the funds appropriated to 

18 carry out this section may be used to make significant in19 vestments in, or provide significant funds for, the acquisi20 tion of hardware or software or for the use of an electronic 

21 health or medical record, or significant components there22 of, unless such investments or funds are for certified prod23 ucts that would permit the full and accurate electronic ex24 change and use of health information in a medical record, 

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1 provement functions adopted by the Office of the National 

2 Coordinator for Health Information Technology. 

3 (c) REPORT.—The Secretary shall annually report to 

4 the Committees on Energy and Commerce, on Ways and 

5 Means, on Science and Technology, and on Appropriations 

6 of the House of Representatives and the Committees on 

7 Finance, on Health, Education, Labor, and Pensions, and 

8 on Appropriations of the Senate on the uses of these funds 

9 and their impact on the infrastructure for the electronic 

10 exchange and use of health information. 

11 Subtitle C—Education 

12 DEPARTMENT OF EDUCATION 

13 EDUCATION FOR THE DISADVANTAGED

14 For an additional amount for ‘‘Education for the Dis15 advantaged’’ to carry out title I of the Elementary and 

16 Secondary Education Act of 1965 (‘‘ESEA’’), 

17 $13,000,000,000: Provided, That $5,500,000,000 shall be 

18 available for targeted grants under section 1125 of the 

19 ESEA, of which $2,750,000,000 shall become available on 

20 July 1, 2009, and shall remain available through Sep21 tember 30, 2010, and $2,750,000,000 shall become avail22 able on July 1, 2010, and shall remain available through 

23 September 30, 2011: Provided further, That 

24 $5,500,000,000 shall be available for education finance in25 centive grants under section 1125A of the ESEA, of which 


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1 $2,750,000,000 shall become available on July 1, 2009, 

2 and shall remain available through September 30, 2010, 

3 and $2,750,000,000 shall become available on July 1, 

4 2010, and shall remain available through September 30, 

5 2011: Provided further, That $2,000,000,000 shall be for 

6 school improvement grants under section 1003(g) of the 

7 ESEA, of which $1,000,000,000 shall become available on 

8 July 1, 2009, and shall remain available through Sep9 tember 30, 2010, and $1,000,000,000 shall become avail10 able on July 1, 2010, and shall remain available through 

11 September 30, 2011: Provided further, That the provisions 

12 of section 1106 of this Act shall not apply to this appro13 priation. 

14 IMPACT AID

15 For an additional amount for ‘‘Impact Aid’’ to carry 

16 out section 8007 of title VIII of the Elementary and Sec17 ondary Education Act of 1965, $100,000,000, which shall 

18 remain available through September 30, 2010: Provided, 

19 That the amount set aside from this appropriation pursu20 ant to section 1106 of this Act shall be 1 percent instead 

21 of the percentage specified in such section. 

22 SCHOOL IMPROVEMENT PROGRAMS

23 For an additional amount for ‘‘School Improvement 

24 Programs’’ to carry out subpart 1, part D of title II of 

25 the Elementary and Secondary Education Act of 1965 


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1 (‘‘ESEA’’), and subtitle B of title VII of the McKinney2 Vento Homeless Assistance Act, $1,066,000,000: Pro3 vided, That $1,000,000,000 shall be available for subpart 

4 1, part D of title II of the ESEA, of which $500,000,000 

5 shall become available on July 1, 2009, and shall remain 

6 available through September 30, 2010, and $500,000,000 

7 shall become available on July 1, 2010, and remain avail8 able through September 30, 2011: Provided further, That 

9 the provisions of section 1106 of this Act shall not apply 

10 to these funds: Provided further, That $66,000,000 shall 

11 be available for subtitle B of title VII of the McKinney12 Vento Homeless Assistance Act, of which $33,000,000 

13 shall become available on July 1, 2009, and shall remain 

14 available through September 30, 2010, and $33,000,000 

15 shall become available on July 1, 2010, and remain avail16 able through September 30, 2011. 

17 INNOVATION AND IMPROVEMENT

18 For an additional amount for ‘‘Innovation and Im19 provement’’ to carry out subpart 1, part D and subpart 

20 2, part B of title V of the Elementary and Secondary Edu21 cation Act of 1965 (‘‘ESEA’’), $225,000,000: Provided, 

22 That $200,000,000 shall be available for subpart 1, part 

23 D of title V of the ESEA: Provided further, That these 

24 funds shall be expended as directed in the fifth, sixth, and 

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1 provement’’ in the Department of Education Appropria2 tions Act, 2008: Provided further, That a portion of these 

3 funds shall also be used for a rigorous national evaluation 

4 by the Institute of Education Sciences, utilizing random5 ized controlled methodology to the extent feasible, that as6 sesses the impact of performance-based teacher and prin7 cipal compensation systems supported by the funds pro8 vided in this Act on teacher and principal recruitment and 

9 retention in high-need schools and subjects: Provided fur10 ther, That $25,000,000 shall be available for subpart 2, 

11 part B of title V of the ESEA: Provided further, That the 

12 amount set aside from this appropriation pursuant to sec13 tion 1106 of this Act shall be 1 percent instead of the 

14 percentage specified in such section. 

15 SPECIAL EDUCATION

16 For an additional amount for ‘‘Special Education’’ 

17 for carrying out section 611 and part C of the Individuals 

18 with Disabilities Education Act (‘‘IDEA’’), 

19 $13,600,000,000: Provided, That $13,000,000,000 shall 

20 be available for section 611 of the IDEA, of which 

21 $6,000,000,000 shall become available on July 1, 2009, 

22 and remain available through September 30, 2010, and 

23 $7,000,000,000 shall become available on July 1, 2010, 

24 and remain available through September 30, 2011: Pro25 vided further, That $600,000,000 shall be available for 


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1 part C of the IDEA, of which $300,000,000 shall become 

2 available on July 1, 2009, and remain available through 

3 September 30, 2010, and $300,000,000 shall become 

4 available on July 1, 2010, and remain available through 

5 September 30, 2011: Provided further, That by July 1, 

6 2009, the Secretary of Education shall reserve the amount 

7 needed for grants under section 643(e) of the IDEA from 

8 funds available for obligation on July 1, 2009, with any 

9 remaining funds to be allocated in accordance with section 

10 643(c) of the IDEA: Provided further, That by July 1, 

11 2010, the Secretary shall reserve the amount needed for 

12 grants under section 643(e) of the IDEA from funds avail13 able for obligation on July 1, 2010, with any remaining 

14 funds to be allocated in accordance with section 643(c) 

15 of the IDEA: Provided further, That if every State, as de16 fined by section 602(31) of the IDEA, reaches its max17 imum allocation under section 611(d)(3)(B)(iii) of the 

18 IDEA, and there are remaining funds, such funds shall 

19 be proportionally allocated to each State subject to the 

20 maximum amounts contained in section 611(a)(2) of the 

21 IDEA: Provided further, That the provisions of section 

22 1106 of this Act shall not apply to this appropriation. 

23 REHABILITATION SERVICES AND DISABILITY RESEARCH

24 For an additional amount for ‘‘Rehabilitation Serv25 ices and Disability Research’’ for providing grants to 


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1 States to carry out the Vocational Rehabilitation Services 

2 program under part B of title I and parts B and C of 

3 chapter 1 and chapter 2 of title VII of the Rehabilitation 

4 Act of 1973, $700,000,000: Provided, That $500,000,000 

5 shall be available for part B of title I of the Rehabilitation 

6 Act, of which $250,000,000 shall become available on Oc7 tober 1, 2009: Provided further, That funds provided here8 in shall not be considered in determining the amount re9 quired to be appropriated under section 100(b)(1) of the 

10 Rehabilitation Act of 1973 in any fiscal year: Provided fur11 ther, That, notwithstanding section 7(14)(A), the Federal 

12 share of the costs of vocational rehabilitation services pro13 vided with the funds provided herein shall be 100 percent: 

14 Provided further, That the provisions of section 1106 of 

15 this Act shall not apply to these funds: Provided further, 

16 That $200,000,000 shall be available for parts B and C 

17 of chapter 1 and chapter 2 of title VII of the Rehabilita18 tion Act, of which $100,000,000 shall become available on 

19 October 1, 2009: Provided further, That $34,775,000 shall 

20 be for State Grants, $114,581,000 shall be for inde21 pendent living centers, and $50,644,000 shall be for serv22 ices for older blind individuals. 

23 STUDENT FINANCIAL ASSISTANCE

24 For an additional amount for ‘‘Student Financial As25 sistance’’ to carry out subpart 1 of part A and part C 


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1 of title IV of the Higher Education Act of 1965 (‘‘HEA’’), 

2 $16,126,000,000, which shall remain available through 

3 September 30, 2011: Provided, That $15,636,000,000 

4 shall be available for subpart 1of part A of title IV of the 

5 HEA: Provided further, That $490,000,000 shall be avail6 able for part C of title IV of the HEA, of which 

7 $245,000,000 shall become available on October 1, 2009: 

8 Provided further, That the provisions of section 1106 of 

9 this Act shall not apply to this appropriation. 

10 The maximum Pell Grant for which a student shall 

11 be eligible during award year 2009–2010 shall be $4,860. 

12 STUDENT AID ADMINISTRATION

13 For an additional amount for ‘‘Student Aid Adminis14 tration’’ to carry out part D of title I, and subparts 1, 

15 3, and 4 of part A, and parts B, C, D, and E of title 

16 IV of the Higher Education Act of 1965, $50,000,000, 

17 which shall remain available through September 30, 2011: 

18 Provided, That such amount shall also be available for an 

19 independent audit of programs and activities authorized 

20 under section 459A of such Act: Provided further, That 

21 the provisions of section 1106 of this Act shall not apply 

22 to this appropriation. 

23 HIGHER EDUCATION

24 For an additional amount for ‘‘Higher Education’’ to 

25 carry out part A of title II of the Higher Education Act 


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1 of 1965, $100,000,000: Provided, That section 203(c)(1) 

2 of such Act shall not apply to awards made with these 

3 funds. 

4 INSTITUTE OF EDUCATION SCIENCES

5 For an additional amount for Institute of Education 

6 Sciences to carry out section 208 of the Educational Tech7 nical Assistance Act, $250,000,000, which may be used 

8 for Statewide data systems that include postsecondary and 

9 workforce information, of which up to $5,000,000 may be 

10 used for State data coordinators and for awards to public 

11 or private organizations or agencies to improve data co12 ordination: Provided, That the amount set aside from this 

13 appropriation pursuant to section 1106 of this Act shall 

14 be 1 percent instead of the percentage specified in such 

15 section. 

16 SCHOOL MODERNIZATION, RENOVATION, AND REPAIR

17 For carrying out section 9301 of this Act, 

18 $14,000,000,000: Provided, That amount available under 

19 section 9301 of this Act for administration and oversight 

20 shall take the place of the set-aside under section 1106 

21 of this Act. 

22 HIGHER EDUCATION MODERNIZATION, RENOVATION, 

23 AND REPAIR

24 For carrying out section 9302 of this Act, 

25 $6,000,000,000: Provided, That amount available under 


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1 section 9302 of this Act for administration and oversight 

2 shall take the place of the set-aside under section 1106 

3 of this Act. 

4 GENERAL PROVISIONS, THIS SUBTITLE 

5 SEC. 9301. 21ST CENTURY GREEN HIGH-PERFORMING PUB6 LIC SCHOOL FACILITIES. 

7 (a) DEFINITIONS.—In this section: 

8 (1) The term ‘‘Bureau-funded school’’ has the 

9 meaning given to such term in section 1141 of the 

10 Education Amendments of 1978 (25 U.S.C. 2021). 

11 (2) The term ‘‘charter school’’ has the meaning 

12 given such term in section 5210 of the Elementary 

13 and Secondary Education Act of 1965. 

14 (3) The term ‘‘local educational agency’’— 

15 (A) has the meaning given to that term in 

16 section 9101 of the Elementary and Secondary 

17 Education Act of 1965, and shall also include 

18 the Recovery School District of Louisiana and 

19 the New Orleans Public Schools; and 

20 (B) includes any public charter school that 

21 constitutes a local educational agency under 

22 State law. 

23 (4) The term ‘‘outlying area’’— 

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1 monwealth of the Northern Mariana Islands; 

2 and 

3 (B) includes the freely associated states of 

4 the Republic of the Marshall Islands, the Fed5 erated States of Micronesia, and the Republic 

6 of Palau. 

7 (5) The term ‘‘public school facilities’’ includes 

8 charter schools. 

9 (6) The term ‘‘State’’ means each of the 50 

10 States, the District of Columbia, and the Common11 wealth of Puerto Rico. 

12 (7) The term ‘‘LEED Green Building Rating 

13 System’’ means the United States Green Building 

14 Council Leadership in Energy and Environmental 

15 Design green building rating standard referred to as 

16 the LEED Green Building Rating System. 

17 (8) The term ‘‘Energy Star’’ means the Energy 

18 Star program of the United States Department of 

19 Energy and the United States Environmental Pro20 tection Agency. 

21 (9) The term ‘‘CHPS Criteria’’ means the 

22 green building rating program developed by the Col23 laborative for High Performance Schools. 


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1 (10) The term ‘‘Green Globes’’ means the 

2 Green Building Initiative environmental design and 

3 rating system referred to as Green Globes. 

4 (b) PURPOSE.—Grants under this section shall be for 

5 the purpose of modernizing, renovating, or repairing pub6 lic school facilities, based on their need for such improve7 ments, to be safe, healthy, high-performing, and up-to8 date technologically. 

9 (c) ALLOCATION OF FUNDS.— 

10 (1) RESERVATIONS.— 

11 (A) IN GENERAL.—From the amount ap12 propriated to carry out this section, the Sec13 retary of Education shall reserve 1 percent of 

14 such amount, consistent with the purpose de15 scribed in subsection (b)— 

16 (i) to provide assistance to the out17 lying areas; and 

18 (ii) for payments to the Secretary of 

19 the Interior to provide assistance to Bu20 reau-funded schools. 

21 (B) ADMINISTRATION AND OVERSIGHT.— 

22 The Secretary may, in addition, reserve up to 

23 $6,000,000 of such amount for administration 

24 and oversight of this section. 

25 (2) ALLOCATION TO STATES.— 


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1 (A) STATE-BY-STATE ALLOCATION.—Of 

2 the amount appropriated to carry out this sec3 tion, and not reserved under paragraph (1), 

4 each State shall be allocated an amount in pro5 portion to the amount received by all local edu6 cational agencies in the State under part A of 

7 title I of the Elementary and Secondary Edu8 cation Act of 1965 for fiscal year 2008 relative 

9 to the total amount received by all local edu10 cational agencies in every State under such part 

11 for such fiscal year. 

12 (B) STATE ADMINISTRATION.—A State 

13 may reserve up to 1 percent of its allocation 

14 under subparagraph (A) to carry out its respon15 sibilities under this section, including— 

16 (i) providing technical assistance to 

17 local educational agencies; 

18 (ii) developing, within 6 months of re19 ceiving its allocation under subparagraph 

20 (A), a plan to develop a database that in21 cludes an inventory of public school facili22 ties in the State and the modernization, 

23 renovation, and repair needs of, energy use 

24 by, and the carbon footprint of such 

25 schools; and 


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1 (iii) developing a school energy effi2 ciency quality plan. 

3 (C) GRANTS TO LOCAL EDUCATIONAL

4 AGENCIES.—From the amount allocated to a 

5 State under subparagraph (A), each local edu6 cational agency in the State that meets the re7 quirements of section 1112(a) of the Elemen8 tary and Secondary Education Act of 1965 

9 shall receive an amount in proportion to the 

10 amount received by such local educational agen11 cy under part A of title I of that Act for fiscal 

12 year 2008 relative to the total amount received 

13 by all local educational agencies in the State 

14 under such part for such fiscal year, except that 

15 no local educational agency that received funds 

16 under part A of title I of that Act for such fis17 cal year shall receive a grant of less than 

18 $5,000. 

19 (D) SPECIAL RULE.—Section 1122(c)(3) 

20 of the Elementary and Secondary Education 

21 Act of 1965 shall not apply to subparagraph 

22 (A) or (C). 

23 (3) SPECIAL RULES.— 

24 (A) DISTRIBUTIONS BY SECRETARY.—The 

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1 tribute the reservations and allocations de2 scribed in paragraphs (1) and (2) not later than 

3 30 days after the date of the enactment of this 

4 Act. 

5 (B) DISTRIBUTIONS BY STATES.—A State 

6 shall make and distribute the allocations de7 scribed in paragraph (2)(C) within 30 days of 

8 receiving such funds from the Secretary. 

9 (d) USE IT OR LOSE IT REQUIREMENTS.— 

10 (1) DEADLINE FOR BINDING COMMITMENTS.— 

11 Each local educational agency receiving funds under 

12 this section shall enter into contracts or other bind13 ing commitments not later than 1 year after the 

14 date of the enactment of this Act (or not later than 

15 9 months after such funds are awarded, if later) to 

16 make use of 50 percent of such funds, and shall 

17 enter into contracts or other binding commitments 

18 not later than 2 years after the date of the enact19 ment of this Act (or not later than 21 months after 

20 such funds are awarded, if later) to make use of the 

21 remaining funds. In the case of activities to be car22 ried out directly by a local educational agency (rath23 er than by contracts, subgrants, or other arrange24 ments with third parties), a certification by the 

25 agency specifying the amounts, planned timing, and 


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1 purpose of such expenditures shall be deemed a 

2 binding commitment for purposes of this subsection. 

3 (2) REDISTRIBUTION OF UNCOMMITTED

4 FUNDS.—A State shall recover or deobligate any 

5 funds not committed in accordance with paragraph 

6 (1), and redistribute such funds to other local edu7 cational agencies eligible under this section and able 

8 to make use of such funds in a timely manner (in9 cluding binding commitments within 120 days after 

10 the reallocation). 

11 (e) ALLOWABLE USES OF FUNDS.—A local edu12 cational agency receiving a grant under this section shall 

13 use the grant for modernization, renovation, or repair of 

14 public school facilities, including— 

15 (1) repairing, replacing, or installing roofs, in16 cluding extensive, intensive or semi-intensive green 

17 roofs, electrical wiring, plumbing systems, sewage 

18 systems, lighting systems, or components of such 

19 systems, windows, or doors, including security doors; 

20 (2) repairing, replacing, or installing heating, 

21 ventilation, air conditioning systems, or components 

22 of such systems (including insulation), including in23 door air quality assessments; 

24 (3) bringing public schools into compliance with 

25 fire, health, and safety codes, including professional 


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1 installation of fire/life safety alarms, including mod2 ernizations, renovations, and repairs that ensure 

3 that schools are prepared for emergencies, such as 

4 improving building infrastructure to accommodate 

5 security measures; 

6 (4) modifications necessary to make public 

7 school facilities accessible to comply with the Ameri8 cans with Disabilities Act of 1990 (42 U.S.C. 12101 

9 et seq.) and section 504 of the Rehabilitation Act of 

10 1973 (29 U.S.C. 794), except that such modifica11 tions shall not be the primary use of the grant; 

12 (5) asbestos or polychlorinated biphenyls abate13 ment or removal from public school facilities; 

14 (6) implementation of measures designed to re15 duce or eliminate human exposure to lead-based 

16 paint hazards through methods including interim 

17 controls, abatement, or a combination of each; 

18 (7) implementation of measures designed to re19 duce or eliminate human exposure to mold or mil20 dew; 

21 (8) upgrading or installing educational tech22 nology infrastructure to ensure that students have 

23 access to up-to-date educational technology; 


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1 (9) technology activities that are carried out in 

2 connection with school repair and renovation, includ3 ing— 

4 (A) wiring; 

5 (B) acquiring hardware and software; 

6 (C) acquiring connectivity linkages and re7 sources; and 

8 (D) acquiring microwave, fiber optics, 

9 cable, and satellite transmission equipment; 

10 (10) modernization, renovation, or repair of 

11 science and engineering laboratory facilities, librar12 ies, and career and technical education facilities, in13 cluding those related to energy efficiency and renew14 able energy, and improvements to building infra15 structure to accommodate bicycle and pedestrian ac16 cess; 

17 (11) renewable energy generation and heating 

18 systems, including solar, photovoltaic, wind, geo19 thermal, or biomass, including wood pellet, systems 

20 or components of such systems; 

21 (12) other modernization, renovation, or repair 

22 of public school facilities to— 

23 (A) improve teachers’ ability to teach and 

24 students’ ability to learn; 


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1 (B) ensure the health and safety of stu2 dents and staff; 

3 (C) make them more energy efficient; or 

4 (D) reduce class size; and 

5 (13) required environmental remediation related 

6 to public school modernization, renovation, or repair 

7 described in paragraphs (1) through (12). 

8 (f) IMPERMISSIBLE USES OF FUNDS.—No funds re9 ceived under this section may be used for— 

10 (1) payment of maintenance costs; or 

11 (2) stadiums or other facilities primarily used 

12 for athletic contests or exhibitions or other events 

13 for which admission is charged to the general public. 

14 (g) SUPPLEMENT, NOT SUPPLANT.—A local edu15 cational agency receiving a grant under this section shall 

16 use such Federal funds only to supplement and not sup17 plant the amount of funds that would, in the absence of 

18 such Federal funds, be available for modernization, ren19 ovation, or repair of public school facilities. 

20 (h) PROHIBITION REGARDING STATE AID.—A State 

21 shall not take into consideration payments under this sec22 tion in determining the eligibility of any local educational 

23 agency in that State for State aid, or the amount of State 

24 aid, with respect to free public education of children. 


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1 (i) SPECIAL RULE ON CONTRACTING.—Each local 

2 educational agency receiving a grant under this section 

3 shall ensure that, if the agency carries out modernization, 

4 renovation, or repair through a contract, the process for 

5 any such contract ensures the maximum number of quali6 fied bidders, including local, small, minority, and women7 and veteran-owned businesses, through full and open com8 petition. 

9 (j) SPECIAL RULE ON USE OF IRON AND STEEL

10 PRODUCED IN THE UNITED STATES.— 

11 (1) IN GENERAL.—A local educational agency 

12 shall not obligate or expend funds received under 

13 this section for a project for the modernization, ren14 ovation, or repair of a public school facility unless all 

15 of the iron and steel used in such project is pro16 duced in the United States. 

17 (2) EXCEPTIONS.—The provisions of paragraph 

18 (1) shall not apply in any case in which the local 

19 educational agency finds that— 

20 (A) their application would be inconsistent 

21 with the public interest; 

22 (B) iron and steel are not produced in the 

23 United States in sufficient and reasonably 

24 available quantities and of a satisfactory qual25 ity; or 


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1 (C) inclusion of iron and steel produced in 

2 the United States will increase the cost of the 

3 overall project contract by more than 25 per4 cent. 

5 (k) APPLICATION OF GEPA.—The grant program 

6 under this section is an applicable program (as that term 

7 is defined in section 400 of the General Education Provi8 sions Act (20 U.S.C. 1221)) subject to section 439 of such 

9 Act (20 U.S.C. 1232b). 

10 (l) CHARTER SCHOOLS.—A local educational agency 

11 receiving an allocation under this section shall use an equi12 table portion of that allocation for allowable activities ben13 efitting charter schools within its jurisdiction, as deter14 mined based on the percentage of students from low-in15 come families in the schools of the agency who are enrolled 

16 in charter schools and on the needs of those schools as 

17 determined by the agency. 

18 (m) GREEN SCHOOLS.— 

19 (1) IN GENERAL.—A local educational agency 

20 shall use not less than 25 percent of the funds re21 ceived under this section for public school mod22 ernization, renovation, or repairs that are certified, 

23 verified, or consistent with any applicable provisions 

24 of— 


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1 (A) the LEED Green Building Rating Sys2 tem; 

3 (B) Energy Star; 

4 (C) the CHPS Criteria; 

5 (D) Green Globes; or 

6 (E) an equivalent program adopted by the 

7 State or another jurisdiction with authority over 

8 the local educational agency. 

9 (2) TECHNICAL ASSISTANCE.—The Secretary, 

10 in consultation with the Secretary of Energy and the 

11 Administrator of the Environmental Protection 

12 Agency, shall provide outreach and technical assist13 ance to States and school districts concerning the 

14 best practices in school modernization, renovation, 

15 and repair, including those related to student aca16 demic achievement and student and staff health, en17 ergy efficiency, and environmental protection. 

18 (n) YOUTHBUILD PROGRAMS.—The Secretary of 

19 Education, in consultation with the Secretary of Labor, 

20 shall work with recipients of funds under this section to 

21 promote appropriate opportunities for participants in a 

22 YouthBuild program (as defined in section 173A of the 

23 Workforce Investment Act of 1998 (29 U.S.C. 2918a)) to 

24 gain employment experience on modernization, renovation, 

25 and repair projects funded under this section. 


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1 (o) REPORTING.— 

2 (1) REPORTS BY LOCAL EDUCATIONAL AGEN3 CIES.—Local educational agencies receiving a grant 

4 under this section shall compile, and submit to the 

5 State educational agency (which shall compile and 

6 submit such reports to the Secretary), a report de7 scribing the projects for which such funds were used, 

8 including— 

9 (A) the number of public schools in the 

10 agency, including the number of charter 

11 schools; 

12 (B) the total amount of funds received by 

13 the local educational agency under this section 

14 and the amount of such funds expended, includ15 ing the amount expended for modernization, 

16 renovation, and repair of charter schools; 

17 (C) the number of public schools in the 

18 agency with a metro-centric locale code of 41, 

19 42, or 43 as determined by the National Center 

20 for Education Statistics and the percentage of 

21 funds received by the agency under this section 

22 that were used for projects at such schools; 

23 (D) the number of public schools in the 

24 agency that are eligible for schoolwide programs 

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1 ondary Education Act of 1965 and the percent2 age of funds received by the agency under this 

3 section that were used for projects at such 

4 schools; 

5 (E) the cost of each project, which, if any, 

6 of the standards described in subsection (k)(1) 

7 the project met, and any demonstrable or ex8 pected academic, energy, or environmental ben9 efits as a result of the project; 

10 (F) if flooring was installed, whether— 

11 (i) it was low- or no-VOC (Volatile 

12 Organic Compounds) flooring; 

13 (ii) it was made from sustainable ma14 terials; and 

15 (iii) use of flooring described in clause 

16 (i) or (ii) was cost effective; and 

17 (G) the total number and amount of con18 tracts awarded, and the number and amount of 

19 contracts awarded to local, small, minority20 owned, women-owned, and veteran-owned busi21 nesses. 

22 (2) REPORTS BY SECRETARY.—Not later than 

23 December 31, 2011, the Secretary of Education 

24 shall submit to the Committees on Education and 

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1 resentatives and the Committees on Health, Edu2 cation, Labor, and Pensions and Appropriations of 

3 the Senate a report on grants made under this sec4 tion, including the information described in para5 graph (1), the types of modernization, renovation, 

6 and repair funded, and the number of students im7 pacted, including the number of students counted 

8 under section 1113(a)(5) of the Elementary and 

9 Secondary Education Act of 1965. 

10 SEC. 9302. HIGHER EDUCATION MODERNIZATION, RENOVA11 TION, AND REPAIR. 

12 (a) PURPOSE.—Grants awarded under this section 

13 shall be for the purpose of modernizing, renovating, and 

14 repairing institution of higher education facilities that are 

15 primarily used for instruction, research, or student hous16 ing. 

17 (b) GRANTS TO STATE HIGHER EDUCATION AGEN18 CIES.— 

19 (1) FORMULA.—From the amounts appro20 priated to carry out this section, the Secretary of 

21 Education shall allocate funds to State higher edu22 cation agencies based on the number of students at23 tending institutions of higher education, with the 

24 State higher education agency in each State receiv25 ing an amount that is in proportion to the number 


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1 of full-time equivalent undergraduate students at2 tending institutions of higher education in such 

3 State for the most recent fiscal year for which there 

4 are data available, relative to the total number of 

5 full-time equivalent undergraduate students attend6 ing institutions of higher education in all States for 

7 such fiscal year. 

8 (2) APPLICATION.—To be eligible to receive an 

9 allocation from the Secretary under paragraph (1), 

10 a State higher education agency shall submit an ap11 plication to the Secretary at such time and in such 

12 manner as the Secretary may reasonably require. 

13 (3) REALLOCATION.—Amounts allocated to a 

14 State higher education agency under this section 

15 that are not obligated by such agency within 6 

16 months of the date the agency receives such 

17 amounts shall be returned to the Secretary, and the 

18 Secretary shall reallocate such amounts to State 

19 higher education agencies in other States on the 

20 same basis as the original allocations under para21 graph (1)(B). 

22 (4) ADMINISTRATION AND OVERSIGHT EX23 PENSES.—From the amounts appropriated to carry 

24 out this section, not more than $6,000,000 shall be 

25 available to the Secretary for administrative and 


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1 oversight expenses related to carrying out this sec2 tion. 

3 (c) USE OF GRANTS BY STATE HIGHER EDUCATION

4 AGENCIES.— 

5 (1) SUBGRANTS TO INSTITUTIONS OF HIGHER

6 EDUCATION.— 

7 (A) IN GENERAL.—Except as provided in 

8 paragraph (2), each State higher education 

9 agency receiving an allocation under subsection 

10 (b)(1) shall use the amount allocated to award 

11 subgrants to institutions of higher education 

12 within the State to carry out projects in accord13 ance with subsection (d)(1). 

14 (B) SUBGRANT AWARD ALLOCATION.—A 

15 State higher education agency shall award sub16 grants to institutions of higher education under 

17 this section based on the demonstrated need of 

18 each institution for facility modernization, ren19 ovation, and repair. 

20 (C) PRIORITY CONSIDERATIONS.—In 

21 awarding subgrants under this section, each 

22 State higher education agency shall give pri23 ority consideration to institutions of higher edu24 cation with any of the following characteristics: 


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1 (i) The institution is eligible for Fed2 eral assistance under title III or title V of 

3 the Higher Education Act of 1965. 

4 (ii) The institution was impacted by a 

5 major disaster or emergency declared by 

6 the President (as defined in section 102(2) 

7 of the Robert T. Stafford Disaster Relief 

8 and Emergency Assistance Act (42 U.S.C. 

9 5122(2))), including an institution affected 

10 by a Gulf hurricane disaster, as such term 

11 is defined in section 824(g)(1) of the High12 er Education Act of 1965 (20 U.S.C. 

13 11611–3(g)(1)). 

14 (iii) The institution demonstrates that 

15 the proposed project or projects to be car16 ried out with a subgrant under this section 

17 will increase the energy efficiency of the in18 stitution’s facilities and comply with the 

19 LEED Green Building Rating System. 

20 (2) ADMINISTRATIVE AND OVERSIGHT EX21 PENSES.—Of the allocation amount received under 

22 subsection (b)(1), a State higher education agency 

23 may reserve not more than 5 percent of such 

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1 trative and oversight expenses related to carrying 

2 out this section. 

3 (d) USE OF SUBGRANTS BY INSTITUTIONS OF HIGH4 ER EDUCATION.— 

5 (1) PERMISSIBLE USES OF FUNDS.—An institu6 tion of higher education receiving a subgrant under 

7 this section shall use such subgrant to modernize, 

8 renovate, or repair facilities of the institution that 

9 are primarily used for instruction, research, or stu10 dent housing, which may include any of the fol11 lowing: 

12 (A) Repair, replacement, or installation of 

13 roofs, electrical wiring, plumbing systems, sew14 age systems, or lighting systems. 

15 (B) Repair, replacement, or installation of 

16 heating, ventilation, or air conditioning systems 

17 (including insulation). 

18 (C) Compliance with fire and safety codes, 

19 including— 

20 (i) professional installation of fire or 

21 life safety alarms; and 

22 (ii) modernizations, renovations, and 

23 repairs that ensure that the institution’s 

24 facilities are prepared for emergencies, 


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1 such as improving building infrastructure 

2 to accommodate security measures. 

3 (D) Retrofitting necessary to increase the 

4 energy efficiency of the institution’s facilities. 

5 (E) Renovations to the institution’s facili6 ties necessary to comply with accessibility re7 quirements in the Americans with Disabilities 

8 Act of 1990 (42 U.S.C. 12101 et seq.) and sec9 tion 504 of the Rehabilitation Act of 1973 (29 

10 U.S.C. 794). 

11 (F) Abatement or removal of asbestos from 

12 the institution’s facilities. 

13 (G) Modernization, renovation, and repair 

14 relating to improving science and engineering 

15 laboratories, libraries, and instructional facili16 ties. 

17 (H) Upgrading or installation of edu18 cational technology infrastructure. 

19 (I) Installation or upgrading of renewable 

20 energy generation and heating systems, includ21 ing solar, photovoltaic, wind, biomass (including 

22 wood pellet), or geothermal systems, or compo23 nents of such systems. 


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1 (J) Other modernization, renovation, or re2 pair projects that are primarily for instruction, 

3 research, or student housing. 

4 (2) GREEN SCHOOL REQUIREMENT.—An insti5 tution of higher education receiving a subgrant 

6 under this section shall use not less than 25 percent 

7 of such subgrant to carry out projects for mod8 ernization, renovation, or repair that are certified, 

9 verified, or consistent with the applicable provisions 

10 of— 

11 (A) the LEED Green Building Rating Sys12 tem; 

13 (B) Energy Star; 

14 (C) the CHPS Criteria; 

15 (D) Green Globes; or 

16 (E) an equivalent program adopted by the 

17 State or the State higher education agency. 

18 (3) PROHIBITED USES OF FUNDS.—No funds 

19 awarded under this section may be used for— 

20 (A) the maintenance of systems, equip21 ment, or facilities, including maintenance asso22 ciated with any permissible uses of funds de23 scribed in paragraph (1); 

24 (B) modernization, renovation, or repair of 

25 stadiums or other facilities primarily used for 


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1 athletic contests or exhibitions or other events 

2 for which admission is charged to the general 

3 public; 

4 (C) modernization, renovation, or repair of 

5 facilities— 

6 (i) used for sectarian instruction, reli7 gious worship, or a school or department 

8 of divinity; or 

9 (ii) in which a substantial portion of 

10 the functions of the facilities are subsumed 

11 in a religious mission; or 

12 (D) construction of new facilities. 

13 (4) USE IT OR LOSE IT REQUIREMENTS.— 

14 (A) DEADLINE FOR BINDING COMMIT15 MENTS.—Each institution of higher education 

16 receiving a subgrant under this section shall 

17 enter into contracts or other binding commit18 ments not later than 1 year after the date of 

19 the enactment of this Act (or not later than 9 

20 months after the subgrant is awarded, if later) 

21 to make use of 50 percent of the funds award22 ed, and shall enter into contracts or other bind23 ing commitments not later than 2 years after 

24 the date of the enactment of this Act (or not 

25 later than 21 months after the subgrant is 


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1 awarded, if later) to make use of the remaining 

2 funds. In the case of activities to be carried out 

3 directly by an institution of higher education re4 ceiving such a subgrant (rather than by con5 tracts, subgrants, or other arrangements with 

6 third parties), a certification by the institution 

7 specifying the amounts, planned timing, and 

8 purpose of such expenditures shall be deemed a 

9 binding commitment for purposes of this sec10 tion. 

11 (B) REDISTRIBUTION OF UNCOMMITTED

12 FUNDS.—A State higher education agency shall 

13 recover or deobligate any subgrant funds not 

14 committed in accordance with subparagraph 

15 (A), and redistribute such funds to other insti16 tutions of higher education that are— 

17 (i) eligible for subgrants under this 

18 section; and 

19 (ii) able to make use of such funds in 

20 a timely manner (including binding com21 mitments within 120 days after the re22 allocation). 

23 (e) APPLICATION OF GEPA.—The grant program au24 thorized in this section is an applicable program (as that 

25 term is defined in section 400 of the General Education 


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1 Provisions Act (20 U.S.C. 1221)) subject to section 439 

2 of such Act (20 U.S.C. 1232b). The Secretary shall, not3 withstanding section 437 of such Act (20 U.S.C. 1232) 

4 and section 553 of title 5, United States Code, establish 

5 such program rules as may be necessary to implement 

6 such grant program by notice in the Federal Register. 

7 (f) REPORTING.— 

8 (1) REPORTS BY INSTITUTIONS.—Not later 

9 than September 30, 2011, each institution of higher 

10 education receiving a subgrant under this section 

11 shall submit to the State higher education agency 

12 awarding such subgrant a report describing the 

13 projects for which such subgrant was received, in14 cluding— 

15 (A) a description of each project carried 

16 out, or planned to be carried out, with such 

17 subgrant, including the types of modernization, 

18 renovation, and repair to be completed by each 

19 such project; 

20 (B) the total amount of funds received by 

21 the institution under this section and the 

22 amount of such funds expended, as of the date 

23 of the report, on the such projects; 

24 (C) the actual or planned cost of each such 

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1 demic, energy, or environmental benefits result2 ing from such project; and 

3 (D) the total number of contracts, and 

4 amount of funding for such contracts, awarded 

5 by the institution to carry out such projects, as 

6 of the date of such report, including the num7 ber of contracts, and amount of funding for 

8 such contracts, awarded to local, small, minor9 ity-owned, women-owned, and veteran-owned 

10 businesses, as such terms are defined by the 

11 Small Business Act. 

12 (2) REPORTS BY STATES.—Not later than De13 cember 31, 2011, each State higher education agen14 cy receiving a grant under this section shall submit 

15 to the Secretary a report containing a compilation of 

16 all of the reports under paragraph (1) submitted to 

17 the agency by institutions of higher education. 

18 (3) REPORTS BY THE SECRETARY.—Not later 

19 than March 31, 2012, the Secretary shall submit to 

20 the Committee on Education and Labor in the 

21 House of Representatives and the Committee on 

22 Health, Education, Labor, and Pensions in the Sen23 ate and Committees on Appropriations of the House 

24 of Representatives and the Senate a report on 


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1 grants and subgrants made under this section, in2 cluding the information described in paragraph (1). 

3 (g) DEFINITIONS.—In this section: 

4 (1) CHPS CRITERIA.—The term ‘‘CHPS Cri5 teria’’ means the green building rating program de6 veloped by the Collaborative for High Performance 

7 Schools. 

8 (2) ENERGY STAR.—The term ‘‘Energy Star’’ 

9 means the Energy Star program of the United 

10 States Department of Energy and the United States 

11 Environmental Protection Agency. 

12 (3) GREEN GLOBES.—The term ‘‘Green 

13 Globes’’ means the Green Building Initiative envi14 ronmental design and rating system referred to as 

15 Green Globes. 

16 (4) INSTITUTION OF HIGHER EDUCATION.—The 

17 term ‘‘institution of higher education’’ has the 

18 meaning given such term in section 101 of the High19 er Education Act of 1965. 

20 (5) LEED GREEN BUILDING RATING SYS21 TEM.—The term ‘‘LEED Green Building Rating 

22 System’’ means the United States Green Building 

23 Council Leadership in Energy and Environmental 

24 Design green building rating standard referred to as 

25 the LEED Green Building Rating System. 


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1 (6) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Education. 

3 (7) STATE.—The term ‘‘State’’ has the mean4 ing given such term in section 103 of the Higher 

5 Education Act of 1965 (20 U.S.C. 1003). 

6 (8) STATE HIGHER EDUCATION AGENCY.—The 

7 term ‘‘State higher education agency’’ has the mean8 ing given such term in section 103 of the Higher 

9 Education Act of 1965 (20 U.S.C. 1003). 

10 SEC. 9303. MANDATORY PELL GRANTS. 

11 Section 401(b)(9)(A) of the Higher Education Act of 

12 1965 (20 U.S.C. 1070a(b)(9)(A)) is amended— 

13 (1) in clause (ii), by striking ‘‘$2,090,000,000’’ 

14 and inserting ‘‘$2,733,000,000’’; and 

15 (2) in clause (iii), by striking ‘‘$3,030,000,000’’ 

16 and inserting ‘‘$3,861,000,000’’. 

17 SEC. 9304. INCREASE STUDENT LOAN LIMITS. 

18 (a) AMENDMENTS.—Section 428H(d) of the Higher 

19 Education Act of 1965 (20 U.S.C. 1078–8(d)) is amend20 ed— 

21 (1) in paragraph (3)— 

22 (A) in subparagraph (A), by striking 

23 ‘‘$2,000’’ and inserting ‘‘$4,000’’; and 

24 (B) in subparagraph (B), by striking 

25 ‘‘$31,000’’ and inserting ‘‘$39,000’’; and 


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1 (2) in paragraph (4)— 

2 (A) in subparagraph (A)— 

3 (i) in clause (i)(I) and clause (iii)(I), 

4 by striking ‘‘$6,000’’ each place it appears 

5 and inserting ‘‘$8,000’’; and 

6 (ii) in clause (ii)(I) and clause 

7 (iii)(II), by striking ‘‘$7,000’’ each place it 

8 appears and inserting ‘‘$9,000’’; and 

9 (B) in subparagraph (B), by striking 

10 ‘‘$57,500’’ and inserting ‘‘$65,500’’. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 this section shall be effective for loans first disbursed on 

13 or after January 1, 2009. 

14 SEC. 9305. STUDENT LENDER SPECIAL ALLOWANCE. 

15 (a) TEMPORARY CALCULATION RULE.—Section 

16 438(b)(2)(I) of the Higher Education Act of 1965 (20 

17 U.S.C. 1087–1(b)(2)(I)) is amended by adding at the end 

18 the following new clause: 

19 ‘‘(vii) TEMPORARY CALCULATION

20 RULE DURING UNSTABLE COMMERCIAL

21 PAPER MARKETS.— 

22 ‘‘(I) CALCULATION BASED ON

23 LIBOR.—For the calendar quarter be24 ginning on October 1, 2008, and end25 ing on December 31, 2008, in comVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00231 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 puting the special allowance paid pur2 suant to this subsection with respect 

3 to loans for which the first disburse4 ment is made on or after January 1, 

5 2000, clause (i)(I) of this subpara6 graph shall be applied by substituting 

7 ‘the rate that is the average rate of 

8 the 3-month London Inter Bank Of9 fered Rate (LIBOR) for United 

10 States dollars in effect for each of the 

11 days in such quarter as compiled and 

12 released by the British Bankers Asso13 ciation, minus 0.13 percent,’ for ‘the 

14 average of the bond equivalent rates 

15 of the quotes of the 3-month commer16 cial paper (financial) rates in effect 

17 for each of the days in such quarter 

18 as reported by the Federal Reserve in 

19 Publication H–15 (or its successor) 

20 for such 3-month period’. 

21 ‘‘(II) PARTICIPATION INTER22 ESTS.—Notwithstanding subclause (I) 

23 of this clause, the special allowance 

24 paid on any loan held by a lender that 

25 has sold participation interests in 


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1 such loan to the Secretary shall be the 

2 rate computed under this subpara3 graph without regard to subclause (I) 

4 of this clause, unless the lender agrees 

5 that the participant’s yield with re6 spect to such participation interest is 

7 to be calculated in accordance with 

8 subclause (I) of this clause.’’. 

9 (b) CONFORMING AMENDMENTS.—Section 

10 438(b)(2)(I) of the Higher Education Act of 1965 (20 

11 U.S.C. 1087–1(b)(2)(I)) is further amended— 

12 (1) in clause (i)(II), by striking ‘‘such average 

13 bond equivalent rate’’ and inserting ‘‘the rate deter14 mined under subclause (I)’’; and 

15 (2) in clause (v)(III), by striking ‘‘(iv), and 

16 (vi)’’ and inserting ‘‘(iv), (vi), and (vii)’’. 

17 Subtitle D—Related Agencies 

18 CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

19 OPERATING EXPENSES

20 For an additional amount for ‘‘Operating Expenses’’ 

21 to carry out the Domestic Volunteer Service Act of 1973 

22 and the National and Community Service Act of 1990 

23 (‘‘1990 Act’’), $160,000,000, which shall be used to ex24 pand existing AmeriCorps grants: Provided, That funds 

25 made available under this heading may be used to provide 


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1 adjustments to awards made prior to September 30, 2010 

2 in order to waive the match requirement authorized in sec3 tion 121(e)(4) of part I of subtitle C of the 1990 Act, 

4 if the Chief Executive Officer of the Corporation for Na5 tional and Community Service (‘‘CEO’’) determines that 

6 the grantee has reduced capacity to meet this requirement: 

7 Provided further, That in addition to requirements identi8 fied herein, funds provided under this heading shall be 

9 subject to the terms and conditions under which funds are 

10 appropriated in fiscal year 2009: Provided further, That 

11 the CEO shall provide the Committees on Appropriations 

12 of the House of Representatives and the Senate a fiscal 

13 year 2009 operating plan for the funds appropriated under 

14 this heading prior to making any Federal obligations of 

15 such funds in fiscal year 2009, but not later than 90 days 

16 after the date of enactment of this Act, and a fiscal year 

17 2010 operating plan for such funds prior to making any 

18 Federal obligations of such funds in fiscal year 2010, but 

19 not later than November 1, 2009, that detail the allocation 

20 of resources and the increased number of volunteers sup21 ported by the AmeriCorps programs: Provided further, 

22 That the CEO shall provide to the Committees on Appro23 priations of the House of Representatives and the Senate 

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1 ing not later than November 1, 2009, and every 6 months 

2 thereafter as long as funding provided under this heading 

3 is available for obligation or expenditure. 

4 NATIONAL SERVICE TRUST

5 (INCLUDING TRANSFER OF FUNDS) 

6 For an additional amount for ‘‘National Service 

7 Trust’’ established under subtitle D of title I of the Na8 tional and Community Service Act of 1990 (‘‘1990 Act’’), 

9 $40,000,000, which shall remain available until expended: 

10 Provided, That the Corporation for National and Commu11 nity Service may transfer additional funds from the 

12 amount provided within ‘‘Operating Expenses’’ for grants 

13 made under subtitle C of the 1990 Act to this appropria14 tion upon determination that such transfer is necessary 

15 to support the activities of national service participants 

16 and after notice is transmitted to the Committees on Ap17 propriations of the House of Representatives and the Sen18 ate: Provided further, That the amount appropriated for 

19 or transferred to the National Service Trust may be in20 vested under section 145(b) of the 1990 Act without re21 gard to the requirement to apportion funds under 31 

22 U.S.C. 1513(b). 


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1 SOCIAL SECURITY ADMINISTRATION

2 LIMITATION ON ADMINISTRATIVE EXPENSES

3 (INCLUDING TRANSFER OF FUNDS)

4 For an additional amount for ‘‘Limitation on Admin5 istrative Expenses’’, $900,000,000, which shall be used as 

6 follows: 

7 (1) $400,000,000 for the construction and asso8 ciated costs to establish a new National Computer 

9 Center, which may include lease or purchase of real 

10 property: Provided, That the construction plan and 

11 site selection for such center shall be subject to re12 view and approval by the Office of Management and 

13 Budget: Provided further, That the Committees on 

14 Appropriations of the House of Representatives and 

15 the Senate shall be notified 15 days in advance of 

16 the lease or purchase of such site: Provided further, 

17 That such center shall continue to be a government18 operated facility. 

19 (2) $500,000,000 for processing disability and 

20 retirement workloads: Provided, That up to 

21 $40,000,000 may be used by the Commissioner of 

22 Social Security for health information technology re23 search and activities to facilitate the adoption of 

24 electronic medical records in disability claims, in25 cluding the transfer of funds to ‘‘Supplemental SeVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00236 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 curity Income Program’’ to carry out activities 

2 under section 1110 of the Social Security Act. 

3 TITLE X—MILITARY CONSTRUC4 TION AND VETERANS AF5 FAIRS 

6 DEPARTMENT OF DEFENSE 

7 MILITARY CONSTRUCTION, ARMY

8 For an additional amount for ‘‘Military Construction, 

9 Army’’, $920,000,000: Provided, That notwithstanding 

10 any other provision of law, such funds may be obligated 

11 and expended to carry out planning and design and mili12 tary construction projects in the United States not other13 wise authorized by law: Provided further, That of the 

14 amount provided under this heading, $600,000,000 shall 

15 be for training and recruit troop housing, $220,000,000 

16 shall be for permanent party troop housing, and 

17 $100,000,000 shall be for child development centers: Pro18 vided further, That not later than 30 days after the date 

19 of enactment of this Act, the Secretary of Defense shall 

20 submit to the Committees on Appropriations of the House 

21 of Representatives and the Senate an expenditure plan for 

22 funds provided under this heading. 

23 MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

24 For an additional amount for ‘‘Military Construction, 

25 Navy and Marine Corps’’, $350,000,000: Provided, That 


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1 notwithstanding any other provision of law, such funds 

2 may be obligated and expended to carry out planning and 

3 design and military construction projects in the United 

4 States not otherwise authorized by law: Provided further, 

5 That of the amount provided under this heading, 

6 $170,000,000 shall be for sailor and marine housing and 

7 $180,000,000 shall be for child development centers: Pro8 vided further, That not later than 30 days after the date 

9 of enactment of this Act, the Secretary of Defense shall 

10 submit to the Committees on Appropriations of the House 

11 of Representatives and the Senate an expenditure plan for 

12 funds provided under this heading. 

13 MILITARY CONSTRUCTION, AIR FORCE

14 For an additional amount for ‘‘Military Construction, 

15 Air Force’’, $280,000,000: Provided, That notwith16 standing any other provision of law, such funds may be 

17 obligated and expended to carry out planning and design 

18 and military construction projects in the United States not 

19 otherwise authorized by law: Provided further, That of the 

20 amount provided under this heading, $200,000,000 shall 

21 be for airmen housing and $80,000,000 shall be for child 

22 development centers: Provided further, That not later than 

23 30 days after the date of enactment of this Act, the Sec24 retary of Defense shall submit to the Committees on Ap25 propriations of the House of Representatives and the SenVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00238 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 ate an expenditure plan for funds provided under this 

2 heading. 

3 MILITARY CONSTRUCTION, DEFENSE-WIDE

4 For an additional amount for ‘‘Military Construction, 

5 Defense-Wide’’, $3,750,000,000, for the construction of 

6 hospitals and ambulatory surgery centers: Provided, That 

7 notwithstanding any other provision of law, such funds 

8 may be obligated and expended to carry out planning and 

9 design and military construction projects in the United 

10 States not otherwise authorized by law: Provided further, 

11 That not later than 30 days after the date of enactment 

12 of this Act, the Secretary of Defense shall submit to the 

13 Committees on Appropriations of the House of Represent14 atives and the Senate an expenditure plan for funds pro15 vided under this heading. 

16 MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

17 For an additional amount for ‘‘Military Construction, 

18 Army National Guard’’, $140,000,000: Provided, That 

19 notwithstanding any other provision of law, such funds 

20 may be obligated and expended to carry out planning and 

21 design and military construction projects in the United 

22 States not otherwise authorized by law: Provided further, 

23 That not later than 30 days after the date of enactment 

24 of this Act, the Secretary of Defense shall submit to the 

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1 atives and the Senate an expenditure plan for funds pro2 vided under this heading. 

3 MILITARY CONSTRUCTION, AIR NATIONAL GUARD

4 For an additional amount for ‘‘Military Construction, 

5 Air National Guard’’, $70,000,000: Provided, That not6 withstanding any other provision of law, such funds may 

7 be obligated and expended to carry out planning and de8 sign and military construction projects in the United 

9 States not otherwise authorized by law: Provided further, 

10 That not later than 30 days after the date of enactment 

11 of this Act, the Secretary of Defense shall submit to the 

12 Committees on Appropriations of the House of Represent13 atives and the Senate an expenditure plan for funds pro14 vided under this heading. 

15 MILITARY CONSTRUCTION, ARMY RESERVE

16 For an additional amount for ‘‘Military Construction, 

17 Army Reserve’’, $100,000,000: Provided, That notwith18 standing any other provision of law, such funds may be 

19 obligated and expended to carry out planning and design 

20 and military construction projects in the United States not 

21 otherwise authorized by law: Provided further, That not 

22 later than 30 days after the date of enactment of this Act, 

23 the Secretary of Defense shall submit to the Committees 

24 on Appropriations of the House of Representatives and the 


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1 Senate an expenditure plan for funds provided under this 

2 heading. 

3 MILITARY CONSTRUCTION, NAVY RESERVE

4 For an additional amount for ‘‘Military Construction, 

5 Navy Reserve’’, $30,000,000: Provided, That notwith6 standing any other provision of law, such funds may be 

7 obligated and expended to carry out planning and design 

8 and military construction projects in the United States not 

9 otherwise authorized by law: Provided further, That not 

10 later than 30 days after the date of enactment of this Act, 

11 the Secretary of Defense shall submit to the Committees 

12 on Appropriations of the House of Representatives and the 

13 Senate an expenditure plan for funds provided under this 

14 heading. 

15 MILITARY CONSTRUCTION, AIR FORCE RESERVE

16 For an additional amount for ‘‘Military Construction, 

17 Air Force Reserve’’, $60,000,000: Provided, That notwith18 standing any other provision of law, such funds may be 

19 obligated and expended to carry out planning and design 

20 and military construction projects in the United States not 

21 otherwise authorized by law: Provided further, That not 

22 later than 30 days after the date of enactment of this Act, 

23 the Secretary of Defense shall submit to the Committees 

24 on Appropriations of the House of Representatives and the 


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1 Senate an expenditure plan for funds provided under this 

2 heading. 

3 DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT

4 1990 

5 For an additional amount to be deposited into the 

6 Department of Defense Base Closure Account 1990, es7 tablished by section 2906(a)(1) of the Defense Base Clo8 sure and Realignment Act of 1990 (10 U.S.C. 2687 note), 

9 $300,000,000: Provided, That not later than 30 days after 

10 the date of enactment of this Act, the Secretary of Defense 

11 shall submit to the Committees on Appropriations of the 

12 House of Representatives and the Senate an expenditure 

13 plan for funds provided under this heading. 

14 DEPARTMENT OF VETERANS AFFAIRS 

15 VETERANS HEALTH ADMINISTRATION

16 MEDICAL FACILITIES

17 For an additional amount for ‘‘Medical Facilities’’ for 

18 non-recurring maintenance, including energy projects, 

19 $950,000,000: Provided, That not later than 30 days after 

20 the date of enactment of this Act, the Secretary of Vet21 erans Affairs shall submit to the Committees on Appro22 priations of the House of Representatives and the Senate 

23 an expenditure plan for funds provided under this head24 ing. 


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1 NATIONAL CEMETERY ADMINISTRATION

2 For an additional amount for ‘‘National Cemetery 

3 Administration’’ for monument and memorial repairs, 

4 $50,000,000: Provided, That not later than 30 days after 

5 the date of enactment of this Act, the Secretary of Vet6 erans Affairs shall submit to the Committees on Appro7 priations of the House of Representatives and the Senate 

8 an expenditure plan for funds provided under this head9 ing. 

10 TITLE XI—DEPARTMENT OF 

11 STATE 

12 DEPARTMENT OF STATE 

13 ADMINISTRATION OF FOREIGN AFFAIRS

14 CAPITAL INVESTMENT FUND

15 For an additional amount for ‘‘Capital Investment 

16 Fund’’, $276,000,000, of which up to $120,000,000 shall 

17 be available for the design and construction of a backup 

18 information management facility in the United States to 

19 support mission-critical operations and projects, and up 

20 to $98,527,000 shall be available to carry out the Depart21 ment of State’s responsibilities under the Comprehensive 

22 National Cybersecurity Initiative: Provided, That the Sec23 retary of State shall submit to the Committees on Appro24 priations of the House of Representatives and the Senate 


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1 within 90 days of enactment of this Act a detailed spend2 ing plan for funds appropriated under this heading. 

3 INTERNATIONAL COMMISSIONS

4 INTERNATIONAL BOUNDARY AND WATER COMMISSION, 

5 UNITED STATES AND MEXICO

6 CONSTRUCTION

7 (INCLUDING TRANSFER OF FUNDS)

8 For an additional amount for ‘‘Construction’’ for the 

9 water quantity program to meet immediate repair and re10 habilitation requirements, $224,000,000: Provided, That 

11 up to $2,000,000 may be transferred to, and merged with, 

12 funds available under the heading ‘‘International Bound13 ary and Water Commission, United States and Mexico— 

14 Salaries and Expenses’’, and such amount shall be in lieu 

15 of amounts available under section 1106 of this Act: Pro16 vided, That the Secretary of State shall submit to the 

17 Committees on Appropriations of the House of Represent18 atives and the Senate within 90 days of enactment of this 

19 Act a detailed spending plan for funds appropriated under 

20 this heading. 


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1 TITLE XII—TRANSPORTATION, 

2 AND HOUSING AND URBAN 

3 DEVELOPMENT 

4 DEPARTMENT OF TRANSPORTATION 

5 FEDERAL AVIATION ADMINISTRATION

6 GRANTS-IN-AID FOR AIRPORTS

7 For an additional amount for ‘‘Grants-in-Aid for Air8 ports’’, to enable the Secretary of Transportation to make 

9 grants for discretionary projects as authorized by sub10 chapter I of chapter 471 and subchapter I of chapter 475 

11 of title 49, United States Code, $3,000,000,000: Provided, 

12 That such funds shall not be subject to apportionment for13 mulas, special apportionment categories, or minimum per14 centages under chapter 471: Provided further, That the 

15 conditions, certifications, and assurances required for 

16 grants under subchapter I of chapter 471 of such title 

17 apply: Provided further, That for purposes of applying sec18 tion 1104 of this Act to this appropriation, the deadline 

19 for grantees to enter into contracts or other binding com20 mitments to make use of not less than 50 percent of the 

21 funds awarded shall be 90 days after award of the grant. 

22 FEDERAL HIGHWAY ADMINISTRATION

23 HIGHWAY INFRASTRUCTURE INVESTMENT

24 For projects and activities eligible under section 133 

25 of title 23, United States Code, section 144 of such title 


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1 (without regard to subsection (g)), and sections 103, 119, 

2 134, 148, and 149 of such title, $30,000,000,000, of 

3 which $300,000,000 shall be for Indian reservation roads 

4 under section 204 of such title; $250,000,000 shall be for 

5 park roads and parkways under section 204 of such title; 

6 $20,000,000 shall be for highway surface transportation 

7 and technology training under section 140(b) of such title; 

8 and $20,000,000 shall be for disadvantaged business en9 terprises bonding assistance under section 332(e) of title 

10 49, United States Code: Provided, That the amount set 

11 aside from this appropriation pursuant to section 1106 of 

12 this Act shall not be more than 0.2 percent of the funds 

13 made available under this heading instead of the percent14 age specified in such section: Provided further, That, after 

15 making the set-asides authorized by the previous provisos, 

16 the funds made available under this heading shall be dis17 tributed among the States, and Puerto Rico, American 

18 Samoa, Guam, the Virgin Islands, and the Commonwealth 

19 of the Northern Mariana Islands, in the same ratio as the 

20 obligation limitation for fiscal year 2008 was distributed 

21 among the States in accordance with the formula specified 

22 in section 120(a)(6) of division K of Public Law 110–161, 

23 but, in the case of the Puerto Rico Highway Program and 

24 the Territorial Highway Program, under section 120(a)(5) 

25 of such division: Provided further, That 45 percent of the 


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1 funds distributed to a State under this heading shall be 

2 suballocated within the State in the manner and for the 

3 purposes described in section 133(d) of title 23, United 

4 States Code, (without regard to the comparison to fiscal 

5 year 2005 in paragraph (2)): Provided further, That in 

6 selecting projects to be funded, recipients shall give pri7 ority to projects that can award contracts within 90 days 

8 of enactment of this Act, are included in an approved 

9 Statewide Transportation Improvement Program (STIP) 

10 and/or Metropolitan Transportation Improvement Pro11 gram (TIP), are projected for completion within a three12 year time frame, and are located in economically dis13 tressed areas as defined by section 301 of the Public 

14 Works and Economic Development Act of 1965, as 

15 amended (42 U.S.C. 3161): Provided further, That funds 

16 made available under this heading shall be administered 

17 as if apportioned under chapter 1 of title 23, United 

18 States Code, except for funds made available for Indian 

19 reservation roads and park roads and parkways which 

20 shall be administered in accordance with chapter 2 of title 

21 23, United States Code: Provided further, That the Fed22 eral share payable on account of any project or activity 

23 carried out with funds made available under this heading 

24 shall, at the option of the recipient, be up to 100 percent 

25 of the total cost thereof: Provided further, That funds 


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1 made available by this Act shall not be obligated for the 

2 purposes authorized under section 115(b) of title 23, 

3 United States Code: Provided further, That the provisions 

4 of section 1101(b) of Public Law 109–59 shall apply to 

5 funds made available under this heading: Provided further, 

6 That, in lieu of the redistribution required by section 

7 1104(b) of this Act, if less than 50 percent of the funds 

8 made available to each State and territory under this 

9 heading are obligated within 90 days after the date of dis10 tribution of those funds to the States and territories, then 

11 the portion of the 50 percent of the total funding distrib12 uted to the State or territory that has not been obligated 

13 shall be redistributed, in the manner described in section 

14 120(c) of division K of Public Law 110–161, to those 

15 States and territories that have obligated at least 50 per16 cent of the funds made available under this heading and 

17 are able to obligate amounts in addition to those pre18 viously distributed, except that, for those funds suballo19 cated within the State, if less than 50 percent of the funds 

20 so suballocated within the State are obligated within 75 

21 days of suballocation, then the portion of the 50 percent 

22 of funding so suballocated that has not been obligated will 

23 be returned to the State for use anywhere in the State 

24 prior to being redistributed in accordance with the first 

25 part of this proviso: Provided further, That, in lieu of the 


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1 redistribution required by section 1104(b) of this Act, any 

2 funds made available under this heading that are not obli3 gated by August 1, 2010, shall be redistributed, in the 

4 manner described in section 120(c) of division K of Public 

5 Law 110–161, to those States able to obligate amounts 

6 in addition to those previously distributed, except that 

7 funds suballocated within the State that are not obligated 

8 by June 1, 2010, will be returned to the State for use 

9 anywhere in the State prior to being redistributed in ac10 cordance with the first part of this proviso: Provided fur11 ther, That notwithstanding section 1103 of this Act, funds 

12 made available under this heading shall be apportioned not 

13 later than 7 days after the date of enactment of this Act. 

14 FEDERAL RAILROAD ADMINISTRATION

15 CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL

16 SERVICE

17 For an additional amount for ‘‘Capital Assistance for 

18 Intercity Passenger Rail Service’’ to enable the Secretary 

19 of Transportation to make grants for capital costs as au20 thorized by chapter 244 of title 49 United States Code, 

21 $300,000,000: Provided, That notwithstanding section 

22 1103 of this Act, the Secretary shall give preference to 

23 projects for the repair, rehabilitation, upgrade, or pur24 chase of railroad assets or infrastructure that can be 

25 awarded within 90 days of enactment of this Act: Provided 


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1 further, That in awarding grants for the acquisition of a 

2 piece of rolling stock or locomotive, the Secretary shall 

3 give preference to FRA-compliant rolling stock and loco4 motives: Provided further, That the Secretary shall give 

5 preference to projects that support the development of 

6 intercity high speed rail service: Provided further, That the 

7 Federal share shall be, at the option of the recipient, up 

8 to 100 percent. 

9 CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL

10 RAILROAD PASSENGER CORPORATION

11 For an additional amount for ‘‘Capital and Debt 

12 Service Grants to the National Railroad Passenger Cor13 poration’’ (Amtrak) to enable the Secretary of Transpor14 tation to make capital grants to Amtrak as authorized by 

15 section 101(c) of the Passenger Rail Investment and Im16 provement Act of 2008 (Public Law 110–432), 

17 $800,000,000: Provided, That priority shall be given to 

18 projects for the repair, rehabilitation, or upgrade of rail19 road assets or infrastructure: Provided further, That none 

20 of the funds under this heading shall be used to subsidize 

21 the operating losses of Amtrak: Provided further, Notwith22 standing section 1103 of this Act, funds made available 

23 under this heading shall be awarded not later than 7 days 

24 after the date of enactment of this Act. 


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1 FEDERAL TRANSIT ADMINISTRATION

2 TRANSIT CAPITAL ASSISTANCE

3 For transit capital assistance grants, $6,000,000,000 

4 (increased by $1,500,000,000), of which $5,400,000,000 

5 (increased by $1,350,000,000) shall be for grants under 

6 section 5307 of title 49, United States Code and shall be 

7 apportioned in accordance with section 5336 of such title 

8 (other than subsections (i)(1) and (j)) but may not be 

9 combined or commingled with any other funds apportioned 

10 under such section 5336, and of which $600,000,000 (in11 creased by $150,000,000) shall be for grants under sec12 tion 5311 of such title and shall be apportioned in accord13 ance with such section 5311 but may not be combined or 

14 commingled with any other funds apportioned under that 

15 section: Provided, That of the funds provided for section 

16 5311 under this heading, 3 percent shall be made available 

17 for section 5311(c)(1): Provided further, That applicable 

18 chapter 53 requirements shall apply except that the Fed19 eral share of the costs for which a grant is made under 

20 this heading shall be, at the option of the recipient, up 

21 to 100 percent: Provided further, In lieu of the require22 ments of section 1103 of this Act, funds made available 

23 under this heading shall be apportioned not later than 7 

24 days after the date of enactment of this Act: Provided fur25 ther, That for purposes of applying section 1104 of this 


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1 Act to this appropriation, the deadline for grantees to 

2 enter into obligations to make use of not less than 50 per3 cent of the funds awarded shall be 90 days after appor4 tionment: Provided further, That the provisions of section 

5 1101(b) of Public Law 109–59 shall apply to funds made 

6 available under this heading: Provided further, That not7 withstanding any other provision of law, of the funds ap8 portioned in accordance with section 5336, up to three9 quarters of 1 percent shall be available for administrative 

10 expenses and program management oversight and of the 

11 funds apportioned in accordance with section 5311, up to 

12 one-half of 1 percent shall be available for administrative 

13 expenses and program management oversight and both 

14 amounts shall remain available for obligation until Sep15 tember 30, 2012: Provided further, That the preceding 

16 proviso shall apply in lieu of the provisions in section 1106 

17 of this Act. 

18 FIXED GUIDEWAY INFRASTRUCTURE INVESTMENT

19 For an amount for capital expenditures authorized 

20 under section 5309(b)(2) of title 49, United States Code, 

21 $2,000,000,000: Provided, That the Secretary of Trans22 portation shall apportion funds under this heading pursu23 ant to the formula set forth in section 5337 of title 49, 

24 United States Code: Provided further, That the funds ap25 propriated under this heading shall not be commingled 


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1 with funds available under the Formula and Bus Grants 

2 account: Provided further, In lieu of the requirements of 

3 section 1103 of this Act, funds made available under this 

4 heading shall be apportioned not later than 7 days after 

5 the date of enactment of this Act: Provided further, That 

6 for purposes of applying section 1104 of this Act to this 

7 appropriation, the deadline for grantees to enter into obli8 gations to make use of not less than 50 percent of the 

9 funds awarded shall be 90 days after apportionment: Pro10 vided further, That applicable chapter 53 requirements 

11 shall apply except that the Federal share of the costs for 

12 which a grant is made under this heading shall be, at the 

13 option of the recipient, up to 100 percent: Provided fur14 ther, That the provisions of section 1101(b) of Public Law 

15 109–59 shall apply to funds made available under this 

16 heading: Provided further, That notwithstanding any other 

17 provision of law, up to 1 percent of the funds under this 

18 heading shall be available for administrative expenses and 

19 program management oversight and shall remain available 

20 for obligation until September 30, 2012: Provided further, 

21 That the preceding proviso shall apply in lieu of the provi22 sions in section 1106 of this Act. 

23 CAPITAL INVESTMENT GRANTS

24 For an additional amount for ‘‘Capital Investment 

25 Grants’’, as authorized under section 5338(c)(4) of title 


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1 49, United States Code, and allocated under section 

2 5309(m)(2)(A) of such title, to enable the Secretary of 

3 Transportation to make discretionary grants as authorized 

4 by section 5309(d) and (e) of such title, $1,000,000,000 

5 (increased by $1,500,000,000): Provided, That such 

6 amount shall be allocated without regard to the limitation 

7 under section 5309(m)(2)(A)(i): Provided further, That in 

8 selecting projects to be funded, priority shall be given to 

9 projects that are currently in construction or are able to 

10 award contracts based on bids within 90 days of enact11 ment of this Act: Provided further, That for purposes of 

12 applying section 1104 of this Act to this appropriation, 

13 the deadline for grantees to enter into contracts or other 

14 binding commitments to make use of not less than 50 per15 cent of the funds awarded shall be 90 days after award: 

16 Provided further, That the provisions of section 1101(b) 

17 of Public Law 109–59 shall apply to funds made available 

18 under this heading: Provided further, That applicable 

19 chapter 53 requirements shall apply, except that notwith20 standing any other provision of law, up to 1 percent of 

21 the funds under this heading shall be available for admin22 istrative expenses and program management oversight and 

23 shall remain available for obligation until September 30, 

24 2012: Provided further, That the preceding proviso shall 

25 apply in lieu of the provisions in section 1106 of this Act. 


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1 DEPARTMENT OF HOUSING AND URBAN 

2 DEVELOPMENT 

3 PUBLIC AND INDIAN HOUSING

4 PUBLIC HOUSING CAPITAL FUND

5 For an additional amount for ‘‘Public Housing Cap6 ital Fund’’ to carry out capital and management activities 

7 for public housing agencies, as authorized under section 

8 9 of the United States Housing Act of 1937 (42 U.S.C. 

9 1437g) (‘‘the Act’’), $5,000,000,000: Provided, That the 

10 Secretary of Housing and Urban Development shall dis11 tribute at least $4,000,000,000 of this amount by the 

12 same formula used for amounts made available in fiscal 

13 year 2008: Provided further, That public housing authori14 ties shall give priority to capital projects that can award 

15 contracts based on bids within 120 days from the date 

16 the funds are made available to the public housing au17 thorities: Provided further, That public housing agencies 

18 shall give priority consideration to the rehabilitation of va19 cant rental units: Provided further, That notwithstanding 

20 any other provision of the Act or regulations: (1) funding 

21 provided herein may not be used for Operating Fund ac22 tivities pursuant to section 9(g) of the Act; and (2) any 

23 restriction of funding to replacement housing uses shall 

24 be inapplicable: Provided further, That public housing 

25 agencies shall prioritize capital projects underway or alVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00255 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 ready in their 5-year plans: Provided further, That of the 

2 amount provided under this heading, the Secretary may 

3 obligate up to $1,000,000,000, for competitive grants to 

4 public housing authorities for activities including: (1) in5 vestments that leverage private sector funding or financ6 ing for housing renovations and energy conservation ret7 rofit investments; (2) rehabilitation of units using sustain8 able materials and methods that improve energy efficiency, 

9 reduce energy costs, or preserve and improve units with 

10 good access to public transportation or employment cen11 ters; (3) increase the availability of affordable rental hous12 ing by expediting rehabilitation projects to bring vacant 

13 units into use or by filling the capital investment gap for 

14 redevelopment or replacement housing projects which have 

15 been approved or are otherwise ready to proceed but are 

16 stalled due to the inability to obtain anticipated private 

17 capital; or (4) address the needs of seniors and persons 

18 with disabilities through improvements to housing and re19 lated facilities which attract or promote the coordinated 

20 delivery of supportive services: Provided further, That the 

21 Secretary may waive statutory or regulatory provisions re22 lated to the obligation and expenditure of capital funds 

23 if necessary to facilitate the timely expenditure of funds 

24 (except for requirements related to fair housing, non25 discrimination, labor standards, and the environment). 


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1 ELDERLY, DISABLED, AND SECTION 8 ASSISTED HOUSING

2 ENERGY RETROFIT

3 For grants or loans to owners of properties receiving 

4 project-based assistance pursuant to section 202 of the 

5 Housing Act of 1959 (12 U.S.C. 17012), section 811 of 

6 the Cranston-Gonzalez National Affordable Housing Act 

7 (42 U.S.C. 8013), or section 8 of the United States Hous8 ing Act of 1937 (42 U.S.C. 1437f), to accomplish energy 

9 retrofit investments, $2,500,000,000: Provided, That such 

10 loans or grants shall be provided through the Office of 

11 Affordable Housing Preservation of the Department of 

12 Housing and Urban Development, on such terms and con13 ditions as the Secretary of Housing and Urban Develop14 ment deems appropriate: Provided further, That eligible 

15 owners must have at least a satisfactory management re16 view rating, be in substantial compliance with applicable 

17 performance standards and legal requirements, and com18 mit to an additional period of affordability determined by 

19 the Secretary: Provided further, That the Secretary shall 

20 undertake appropriate underwriting and oversight with re21 spect to such transactions: Provided further, That the Sec22 retary may set aside funds made available under this 

23 heading for an efficiency incentive payable upon satisfac24 tory completion of energy retrofit investments, and may 

25 provide additional incentives if such investments resulted 


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1 in extraordinary job creation for low-income and very low2 income persons: Provided further, that of the funds pro3 vided under this heading, 1 percent shall be available only 

4 for staffing, training, technical assistance, technology, 

5 monitoring, research and evaluation activities. 

6 NATIVE AMERICAN HOUSING BLOCK GRANTS

7 For an additional amount for ‘‘Native American 

8 Housing Block Grants’’, as authorized under title I of the 

9 Native American Housing Assistance and Self-Determina10 tion Act of 1996 (‘‘NAHASDA’’) (25 U.S.C. 4111 et 

11 seq.), $500,000,000: Provided, That $250,000,000 of the 

12 amount appropriated under this heading shall be distrib13 uted according to the same funding formula used in fiscal 

14 year 2008: Provided further, That in selecting projects to 

15 be funded, recipients shall give priority to projects that 

16 can award contracts based on bids within 120 days from 

17 the date that funds are available to the recipients: Pro18 vided further, That in allocating the funds appropriated 

19 under this heading, the Secretary of Housing and Urban 

20 Development shall not require an additional action plan 

21 from grantees: Provided further, That the Secretary may 

22 obligate $250,000,000 of the amount appropriated under 

23 this heading for competitive grants to eligible entities that 

24 apply for funds as authorized under NAHASDA: Provided 

25 further, That in awarding competitive funds, the Secretary 


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1 shall give priority to projects that will spur construction 

2 and rehabilitation and will create employment opportuni3 ties for low-income and unemployed persons. 

4 COMMUNITY PLANNING AND DEVELOPMENT

5 COMMUNITY DEVELOPMENT FUND

6 For an additional amount for ‘‘Community Develop7 ment Fund’’ $1,000,000,000, to carry out the community 

8 development block grant program under title I of the 

9 Housing and Community Development Act of 1974 (42 

10 U.S.C. 5301 et seq.): Provided, That the amount appro11 priated in this paragraph shall be distributed according 

12 to the same funding formula used in fiscal year 2008: Pro13 vided further, That in allocating the funds appropriated 

14 in this paragraph, the Secretary of Housing and Urban 

15 Development shall not require an additional action plan 

16 from grantees: Provided further, That in selecting projects 

17 to be funded, recipients shall give priority to projects that 

18 can award contracts based on bids within 120 days from 

19 the date the funds are made available to the recipients; 

20 Provided further, That in administering funds provided in 

21 this paragraph, the Secretary may waive any provision of 

22 any statute or regulation that the Secretary administers 

23 in connection with the obligation by the Secretary or the 

24 use by the recipient of these funds (except for require25 ments related to fair housing, nondiscrimination, labor 


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1 standards, and the environment), upon a finding that such 

2 waiver is required to facilitate the timely use of such funds 

3 and would not be inconsistent with the overall purpose of 

4 the statute. 

5 For a further additional amount for ‘‘Community De6 velopment Fund’’, $4,190,000,000, to be used for neigh7 borhood stabilization activities related to emergency as8 sistance for the redevelopment of abandoned and fore9 closed homes as authorized under division B, title III of 

10 the Housing and Economic Recovery Act of 2008 (Public 

11 Law 110–289), of which— 

12 (1) not less than $3,440,000,000 shall be allo13 cated by a competition for which eligible entities 

14 shall be States, units of general local government, 

15 and nonprofit entities or consortia of nonprofit enti16 ties: Provided, That the award criteria for such com17 petition shall include grantee capacity, leveraging 

18 potential, targeted impact of foreclosure prevention, 

19 and any additional factors determined by the Sec20 retary of Housing and Urban Development: Provided 

21 further, that the Secretary may establish a minimum 

22 grant size: Provided further, That amounts made 

23 available under this Section may be used to: (A) es24 tablish financing mechanisms for purchase and rede25 velopment of foreclosed-upon homes and residential 


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1 properties, including such mechanisms as soft-sec2 onds, loan loss reserves, and shared-equity loans for 

3 low- and moderate-income homebuyers; (B) purchase 

4 and rehabilitate homes and residential properties 

5 that have been abandoned or foreclosed upon, in 

6 order to sell or rent such homes and properties; (C) 

7 establish and operate land banks for homes that 

8 have been foreclosed upon; (D) demolish foreclosed 

9 properties that have become blighted structures; and 

10 (E) redevelop demolished or vacant foreclosed prop11 erties in order to sell or rent such properties; and 

12 (2) up to $750,000,000 shall be awarded by 

13 competition to nonprofit entities or consortia of non14 profit entities to provide community stabilization as15 sistance by: (A) accelerating state and local govern16 ment and nonprofit productivity; (B) increasing the 

17 scale and efficiency of property transfers of fore18 closed and vacant residential properties from finan19 cial institutions and government entities to qualified 

20 local housing providers in order to return the prop21 erties to productive affordable housing use; (C) 

22 building industry and property management capac23 ity; and (D) partnering with private sector real es24 tate developers and contractors and leveraging pri25 vate sector capital: Provided further, That such comVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00261 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 munity stabilization assistance shall be provided pri2 marily in States and areas with high rates of de3 faults and foreclosures to support the acquisition, re4 habilitation and property management of single-fam5 ily and multi-family homes and to work in partner6 ship with the private sector real estate industry and 

7 to leverage available private and public funds for 

8 those purposes: Provided further, That for purposes 

9 of this paragraph qualified local housing providers 

10 shall be nonprofit organizations with demonstrated 

11 capabilities in real estate development or acquisition 

12 and rehabilitation or property management of single13 or multi-family homes, or local or state governments 

14 or instrumentalities of such governments: Provided 

15 further, That qualified local housing providers shall 

16 be expected to utilize and leverage additional local 

17 nonprofit, governmental, for-profit and private re18 sources: 

19 Provided further, That in the case of any foreclosure on 

20 any dwelling or residential real property acquired with any 

21 amounts made available under this heading, any successor 

22 in interest in such property pursuant to the foreclosure 

23 shall assume such interest subject to: (1) the provision by 

24 such successor in interest of a notice to vacate to any bona 

25 fide tenant at least 90 days before the effective date of 


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1 such notice; and (2) the rights of any bona fide tenant, 

2 as of the date of such notice of foreclosure: (A) under any 

3 bona fide lease entered into before the notice of foreclosure 

4 to occupy the premises until the end of the remaining term 

5 of the lease, except that a successor in interest may termi6 nate a lease effective on the date of sale of the unit to 

7 a purchaser who will occupy the unit as a primary resi8 dence, subject to the receipt by the tenant of the 90-day 

9 notice under this paragraph; or (B) without a lease or with 

10 a lease terminable at will under State law, subject to the 

11 receipt by the tenant of the 90-day notice under this para12 graph, except that nothing in this paragraph shall affect 

13 the requirements for termination of any Federal- or State14 subsidized tenancy or of any State or local law that pro15 vides longer time periods or other additional protections 

16 for tenants: Provided further, That, for purposes of this 

17 paragraph, a lease or tenancy shall be considered bona fide 

18 only if: (1) the mortgagor under the contract is not the 

19 tenant; (2) the lease or tenancy was the result of an arms20 length transaction; and (3) the lease or tenancy requires 

21 the receipt of rent that is not substantially less than fair 

22 market rent for the property: Provided further, That the 

23 recipient of any grant or loan from amounts made avail24 able under this heading may not refuse to lease a dwelling 

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1 er of a voucher or certificate of eligibility under section 

2 8 of the United States Housing Act of 1937 (42 U.S.C. 

3 1437f) because of the status of the prospective tenant as 

4 such a holder: Provided further, That in the case of any 

5 qualified foreclosed housing for which funds made avail6 able under this heading are used and in which a recipient 

7 of assistance under section 8(o) of the U.S. Housing Act 

8 of 1937 resides at the time of acquisition or financing, 

9 the owner and any successor in interest shall be subject 

10 to the lease and to the housing assistance payments con11 tract for the occupied unit: Provided further, That 

12 vacating the property prior to sale shall not constitute 

13 good cause for termination of the tenancy unless the prop14 erty is unmarketable while occupied or unless the owner 

15 or subsequent purchaser desires the unit for personal or 

16 family use: Provided further, That this paragraph shall not 

17 preempt any State or local law that provides more protec18 tion for tenants: Provided further, That amounts made 

19 available under this heading may be used for the costs 

20 of demolishing foreclosed housing that is deteriorated or 

21 unsafe: Provided further, That the amount for demolition 

22 of such housing may not exceed 10 percent of amounts 

23 allocated under this paragraph to States and units of gen24 eral local government: Provided further, That no amounts 

25 from a grant made under this paragraph may be used to 


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1 demolish any public housing (as such term is defined in 

2 section 3 of the United States Housing Act of 1937 (42 

3 U.S.C. 1437a)): Provided further, That section 2301(d)(4) 

4 of the Housing and Economic Recovery Act of 2008 (Pub5 lic Law 110–289) is repealed. 

6 HOME INVESTMENT PARTNERSHIPS PROGRAM

7 For an additional amount for ‘‘HOME Investment 

8 Partnerships Program’’ as authorized under Title II of the 

9 Cranston-Gonzalez National Affordable Housing Act (‘‘the 

10 Act’’), $1,500,000,000: Provided, That the amount appro11 priated under this heading shall be distributed according 

12 to the same funding formula used in fiscal year 2008: Pro13 vided further, That the Secretary of Housing and Urban 

14 Development may waive statutory or regulatory provisions 

15 related to the obligation of such funds if necessary to fa16 cilitate the timely expenditure of funds (except for require17 ments related to fair housing, nondiscrimination, labor 

18 standards, and the environment): Provided further, That 

19 in selecting projects to be funded, recipients shall give pri20 ority to projects that can award contracts based on bids 

21 within 120 days from the date that funds are available 

22 to the recipients. 


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1 SELF-HELP AND ASSISTED HOMEOWNERSHIP

2 OPPORTUNITY PROGRAM

3 For an additional amount for ‘‘Self-Help and As4 sisted Homeownership Opportunity Program’’, as author5 ized under section 11 of the Housing Opportunity Pro6 gram Extension Act of 1996, $10,000,000: Provided, That 

7 in awarding competitive grant funds, the Secretary of 

8 Housing and Urban Development shall give priority to the 

9 provision and rehabilitation of sustainable, affordable sin10 gle and multifamily units in low-income, high-need rural 

11 areas: Provided further, That in selecting projects to be 

12 funded, grantees shall give priority to projects that can 

13 award contracts based on bids within 120 days from the 

14 date the funds are made available to the grantee. 

15 HOMELESS ASSISTANCE GRANTS

16 For an additional amount for ‘‘Homeless Assistance 

17 Grants’’, for the emergency shelter grants program as au18 thorized under subtitle B of tile IV of the McKinney-Vento 

19 Homeless Assistance Act, $1,500,000,000: Provided, That 

20 in addition to homeless prevention activities specified in 

21 the emergency shelter grant program, funds provided 

22 under this heading may be used for the provision of short23 term or medium-term rental assistance; housing relocation 

24 and stabilization services including housing search, medi25 ation or outreach to property owners, legal services, credit 


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1 repair, resolution of security or utility deposits, utility pay2 ments, rental assistance for a final month at a location, 

3 and moving costs assistance; or other appropriate home4 lessness prevention activities; Provided further, That these 

5 funds shall be allocated pursuant to the formula author6 ized by section 413 of such Act: Provided further, That 

7 the Secretary of Housing and Urban Development may 

8 waive statutory or regulatory provisions related to the obli9 gation and use of emergency shelter grant funds necessary 

10 to facilitate the timely expenditure of funds. 

11 OFFICE OF HEALTHY HOMES AND LEAD HAZARD

12 CONTROL

13 LEAD HAZARD REDUCTION

14 For an additional amount for ‘‘Lead Hazard Reduc15 tion’’, for the Lead Hazard Reduction Program as author16 ized by section 1011 of the Residential Lead-Based Paint 

17 Hazard Reduction Act of 1992, $100,000,000: Provided, 

18 That for purposes of environmental review, pursuant to 

19 the National Environmental Policy Act of 1969 (42 U.S.C. 

20 4321 et seq.) and other provisions of law that further the 

21 purposes of such Act, a grant under the Healthy Homes 

22 Initiative, Operation Lead Elimination Action Plan 

23 (LEAP), or the Lead Technical Studies program under 

24 this heading or under prior appropriations Acts for such 

25 purposes under this heading, shall be considered to be 


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1 funds for a special project for purposes of section 305(e) 

2 of the Multifamily Housing Property Disposition Reform 

3 Act of 1994: Provided further, That of the total amount 

4 made available under this heading, $30,000,000 shall be 

5 made available on a competitive basis for areas with the 

6 highest lead paint abatement needs. 

7 GENERAL PROVISIONS, THIS TITLE 

8 SEC. 12001. MAINTENANCE OF EFFORT AND REPORTING 

9 REQUIREMENTS TO ENSURE TRANSPARENCY 

10 AND ACCOUNTABILITY. 

11 (a) MAINTENANCE OF EFFORT.—Not later than 30 

12 days after the date of enactment of this Act, for each 

13 amount that is distributed to a State or agency thereof 

14 from an appropriation in this Act for a covered program, 

15 the Governor of the State shall certify that the State will 

16 maintain its effort with regard to State funding for the 

17 types of projects that are funded by the appropriation. As 

18 part of this certification, the Governor shall submit to the 

19 covered agency a statement identifying the amount of 

20 funds the State planned to expend as of October 1, 2008, 

21 from non-Federal sources in the period beginning on the 

22 date of enactment of this Act through September 30, 

23 2010, for the types of projects that are funded by the ap24 propriation. 


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1 (b) FAILURE TO MAINTAIN EFFORT.—If a Governor 

2 is unable to certify that Federal funds will not supplant 

3 non-Federal funds pursuant to subsection (a), then the 

4 Federal funds apportioned to that State under this Act 

5 that will supplant non-Federal funds will be recaptured 

6 by the appropriate Federal agency and redistributed to 

7 States or agencies that can spend the Federal funds with8 out supplanting non-Federal funds. 

9 (c) PERIODIC REPORTS.— 

10 (1) IN GENERAL.—Notwithstanding any other 

11 provision of law, each grant recipient shall submit to 

12 the covered agency from which they received funding 

13 periodic reports on the use of the funds appropriated 

14 in this Act for covered programs. Such reports shall 

15 be collected and compiled by the covered agency and 

16 transmitted to Congress. 

17 (2) CONTENTS OF REPORTS.—For amounts re18 ceived under each covered program by a grant re19 cipient under this Act, the grant recipient shall in20 clude in the periodic reports information tracking— 

21 (A) the amount of Federal funds appro22 priated, allocated, obligated, and outlayed under 

23 the appropriation; 

24 (B) the number of projects that have been 

25 put out to bid under the appropriation and the 


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1 amount of Federal funds associated with such 

2 projects; 

3 (C) the number of projects for which con4 tracts have been awarded under the appropria5 tion and the amount of Federal funds associ6 ated with such contracts; 

7 (D) the number of projects for which work 

8 has begun under such contracts and the 

9 amount of Federal funds associated with such 

10 contracts; 

11 (E) the number of projects for which work 

12 has been completed under such contracts and 

13 the amount of Federal funds associated with 

14 such contracts; 

15 (F) the number of jobs created or sus16 tained by the Federal funds provided for 

17 projects under the appropriation, including in18 formation on job sectors and pay levels; and 

19 (G) for each covered program report infor20 mation tracking the actual aggregate expendi21 tures by each grant recipient from non-Federal 

22 sources for projects eligible for funding under 

23 the program during the period beginning on the 

24 date of enactment of this Act through Sep25 tember 30, 2010, as compared to the level of 


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1 such expenditures that were planned to occur 

2 during such period as of the date of enactment 

3 of this Act. 

4 (3) TIMING OF REPORTS.—Each grant recipient 

5 shall submit the first of the periodic reports required 

6 under this subsection not later than 30 days after 

7 the date of enactment of this Act and shall submit 

8 updated reports not later than 60 days, 120 days, 

9 180 days, 1 year, and 3 years after such date of en10 actment. 

11 (d) DEFINITIONS.—In this section, the following defi12 nitions apply: 

13 (1) COVERED AGENCY.—The term ‘‘covered 

14 agency’’ means the Federal Aviation Administration, 

15 the Federal Highway Administration, the Federal 

16 Railroad Administration, and the Federal Transit 

17 Administration of the Department of Transpor18 tation. 

19 (2) COVERED PROGRAM.—The term ‘‘covered 

20 program’’ means funds appropriated in this Act for 

21 ‘‘Grants-in-Aid for Airports’’ to the Federal Aviation 

22 Administration; for ‘‘Highway Infrastructure Invest23 ment’’ to the Federal Highway Administration; for 

24 ‘‘Capital Assistance for Intercity Passenger Rail 

25 Service’’ to the Federal Railroad Administration; for 


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1 ‘‘Transit Capital Assistance’’, ‘‘Fixed Guideway In2 frastructure Investment’’, and ‘‘Capital Investment 

3 Grants’’ to the Federal Transit Administration. 

4 (3) GRANT RECIPIENT.—The term ‘‘grant re5 cipient’’ means a State or other recipient of assist6 ance provided under a covered program in this Act. 

7 Such term does not include a Federal department or 

8 agency. 

9 SEC. 12002. FHA LOAN LIMITS FOR 2009. 

10 (a) LOAN LIMIT FLOOR BASED ON 2008 LEVELS.— 

11 For mortgages for which the mortgagee issues credit ap12 proval for the borrower during calendar year 2009, if the 

13 dollar amount limitation on the principal obligation of a 

14 mortgage determined under section 203(b)(2) of the Na15 tional Housing Act (12 U.S.C. 1709(b)(2)) for any size 

16 residence for any area is less than such dollar amount lim17 itation that was in effect for such size residence for such 

18 area for 2008 pursuant to section 202 of the Economic 

19 Stimulus Act of 2008 (Public Law 110–185; 122 Stat. 

20 620), notwithstanding any other provision of law, the max21 imum dollar amount limitation on the principal obligation 

22 of a mortgage for such size residence for such area for 

23 purposes of such section 203(b)(2) shall be considered (ex24 cept for purposes of section 255(g) of such Act (12 U.S.C. 


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1 1715z–20(g))) to be such dollar amount limitation in ef2 fect for such size residence for such area for 2008. 

3 (b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 

4 Notwithstanding any other provision of law, if the Sec5 retary of Housing and Urban Development determines, for 

6 any geographic area that is smaller than an area for which 

7 dollar amount limitations on the principal obligation of a 

8 mortgage are determined under section 203(b)(2) of the 

9 National Housing Act, that a higher such maximum dollar 

10 amount limitation is warranted for any particular size or 

11 sizes of residences in such sub-area by higher median 

12 home prices in such sub-area, the Secretary may, for mort13 gages for which the mortgagee issues credit approval for 

14 the borrower during calendar year 2009, increase the max15 imum dollar amount limitation for such size or sizes of 

16 residences for such sub-area that is otherwise in effect (in17 cluding pursuant to subsection (a) of this section), but in 

18 no case to an amount that exceeds the amount specified 

19 in section 202(a)(2) of the Economic Stimulus Act of 

20 2008. 

21 SEC. 12003. GSE CONFORMING LOAN LIMITS FOR 2009. 

22 (a) LOAN LIMIT FLOOR BASED ON 2008 LEVELS.— 

23 For mortgages originated during calendar year 2009, if 

24 the limitation on the maximum original principal obliga25 tion of a mortgage that may purchased by the Federal 


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1 National Mortgage Association or the Federal Home Loan 

2 Mortgage Corporation determined under section 302(b)(2) 

3 of the Federal National Mortgage Association Charter Act 

4 (12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Fed5 eral Home Loan Mortgage Corporation Act (12 U.S.C. 

6 1754(a)(2)), respectively, for any size residence for any 

7 area is less than such maximum original principal obliga8 tion limitation that was in effect for such size residence 

9 for such area for 2008 pursuant to section 201 of the Eco10 nomic Stimulus Act of 2008 (Public Law 110–185; 122 

11 Stat. 619), notwithstanding any other provision of law, the 

12 limitation on the maximum original principal obligation of 

13 a mortgage for such Association and Corporation for such 

14 size residence for such area shall be such maximum limita15 tion in effect for such size residence for such area for 

16 2008. 

17 (b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 

18 Notwithstanding any other provision of law, if the Direc19 tor of the Federal Housing Finance Agency determines, 

20 for any geographic area that is smaller than an area for 

21 which limitations on the maximum original principal obli22 gation of a mortgage are determined for the Federal Na23 tional Mortgage Association or the Federal Home Loan 

24 Mortgage Corporation, that a higher such maximum origi25 nal principal obligation limitation is warranted for any 


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1 particular size or sizes of residences in such sub-area by 

2 higher median home prices in such sub-area, the Director 

3 may, for mortgages originated during 2009, increase the 

4 maximum original principal obligation limitation for such 

5 size or sizes of residences for such sub-area that is other6 wise in effect (including pursuant to subsection (a) of this 

7 section) for such Association and Corporation, but in no 

8 case to an amount that exceeds the amount specified in 

9 the matter following the comma in section 201(a)(1)(B) 

10 of the Economic Stimulus Act of 2008. 

11 SEC. 12004. FHA REVERSE MORTGAGE LOAN LIMITS FOR 

12 2009. 

13 For mortgages for which the mortgagee issues credit 

14 approval for the borrower during calendar year 2009, the 

15 second sentence of section 255(g) of the National Housing 

16 Act (12 U.S.C. 171520(g)) shall be considered to require 

17 that in no case may the benefits of insurance under such 

18 section 255 exceed 150 percent of the maximum dollar 

19 amount in effect under the sixth sentence of section 

20 305(a)(2) of the Federal Home Loan Mortgage Corpora21 tion Act (12 U.S.C. 1454(a)(2)). 


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1 TITLE XIII—STATE FISCAL 

2 STABILIZATION FUND 

3 DEPARTMENT OF EDUCATION 

4 STATE FISCAL STABILIZATION FUND

5 For necessary expenses for a State Fiscal Stabiliza6 tion Fund, $79,000,000,000, which shall be administered 

7 by the Department of Education, of which 

8 $39,500,000,000 shall become available on July 1, 2009, 

9 and remain available through September 30, 2010, and 

10 $39,500,000,000 shall become available on July 1, 2010, 

11 and remain available through September 30, 2011: Pro12 vided, That the provisions of section 1103 of this Act shall 

13 not apply to the funds reserved under section 13001(c) 

14 of this title: Provided further, That the amount made 

15 available under section 13001(b) of this title for adminis16 tration and oversight shall take the place of the set-aside 

17 under section 1106 of this Act. 

18 GENERAL PROVISIONS, THIS TITLE 

19 SEC. 13001. ALLOCATIONS. 

20 (a) OUTLYING AREAS.—From each year’s appropria21 tion to carry out this title, the Secretary of Education 

22 shall first allocate one half of 1 percent to the outlying 

23 areas on the basis of their respective needs, as determined 

24 by the Secretary, for activities consistent with this title 


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1 under such terms and conditions as the Secretary may de2 termine. 

3 (b) ADMINISTRATION AND OVERSIGHT.—The Sec4 retary may, in addition, reserve up to $12,500,000 each 

5 year for administration and oversight of this title, includ6 ing for program evaluation. 

7 (c) RESERVATION FOR ADDITIONAL PROGRAMS.— 

8 After reserving funds under subsections (a) and (b), the 

9 Secretary shall reserve $7,500,000,000 each year for 

10 grants under sections 13006 and 13007. 

11 (d) STATE ALLOCATIONS.—After carrying out sub12 sections (a), (b), and (c), the Secretary shall allocate the 

13 remaining funds made available to carry out this title to 

14 the States as follows: 

15 (1) 61 percent on the basis of their relative 

16 population of individuals aged 5 through 24. 

17 (2) 39 percent on the basis of their relative 

18 total population. 

19 (e) STATE GRANTS.—From funds allocated under 

20 subsection (d), the Secretary shall make grants to the 

21 Governor of each State. 

22 (f) REALLOCATION.—The Governor shall return to 

23 the Secretary any funds received under subsection (e) that 

24 the Governor does not obligate within one year of receiving 


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1 a grant, and the Secretary shall reallocate such funds to 

2 the remaining States in accordance with subsection (d). 

3 SEC. 13002. STATE USES OF FUNDS. 

4 (a) EDUCATION FUND.— 

5 (1) IN GENERAL.—For each fiscal year, the 

6 Governor shall use at least 61 percent of the State’s 

7 allocation under section 13001 for the support of el8 ementary, secondary, and postsecondary education. 

9 (2) RESTORING 2008 STATE SUPPORT FOR EDU10 CATION.— 

11 (A) IN GENERAL.—The Governor shall 

12 first use the funds described in paragraph (1)— 

13 (i) to provide the amount of funds, 

14 through the State’s principal elementary 

15 and secondary funding formula, that is 

16 needed to restore State support for elemen17 tary and secondary education to the fiscal 

18 year 2008 level; and 

19 (ii) to provide the amount of funds to 

20 public institutions of higher education in 

21 the State that is needed to restore State 

22 support for postsecondary education to the 

23 fiscal year 2008 level. 

24 (B) SHORTFALL.—If the Governor deter25 mines that the amount of funds available under 


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1 paragraph (1) is insufficient to restore State 

2 support for education to the levels described in 

3 clauses (i) and (ii) of subparagraph (A), the 

4 Governor shall allocate those funds between 

5 those clauses in proportion to the relative short6 fall in State support for the education sectors 

7 described in those clauses. 

8 (3) SUBGRANTS TO IMPROVE BASIC PROGRAMS

9 OPERATED BY LOCAL EDUCATIONAL AGENCIES.— 

10 After carrying out paragraph (2), the Governor shall 

11 use any funds remaining under paragraph (1) to 

12 provide local educational agencies in the State with 

13 subgrants based on their relative shares of funding 

14 under part A of title I of the Elementary and Sec15 ondary Education Act of 1965 (20 U.S.C. 6311 et 

16 seq.) for the most recent year for which data are 

17 available. 

18 (b) OTHER GOVERNMENT SERVICES.—For each fis19 cal year, the Governor may use up to 39 percent of the 

20 State’s allocation under section 1301 for public safety and 

21 other government services, which may include assistance 

22 for elementary and secondary education and public institu23 tions of higher education. 


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1 SEC. 13003. USES OF FUNDS BY LOCAL EDUCATIONAL 

2 AGENCIES. 

3 (a) IN GENERAL.—A local educational agency that 

4 receives funds under this title may use the funds for any 

5 activity authorized by the Elementary and Secondary Edu6 cation Act of 1965 (20 U.S.C. 6301 et seq.) (‘‘ESEA’’), 

7 the Individuals with Disabilities Education Act (20 U.S.C. 

8 1400 et seq.) (‘‘IDEA’’), or the Carl D. Perkins Career 

9 and Technical Education Act of 2006 (20 U.S.C. 2301 

10 et seq.) (‘‘the Perkins Act’’). 

11 (b) PROHIBITION.—A local educational agency may 

12 not use funds received under this title for capital projects 

13 unless authorized by ESEA, IDEA, or the Perkins Act. 

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

15 EDUCATION. 

16 (a) IN GENERAL.—A public institution of higher edu17 cation that receives funds under this title shall use the 

18 funds for education and general expenditures, and in such 

19 a way as to mitigate the need to raise tuition and fees 

20 for in-State students. 

21 (b) PROHIBITION.—An institution of higher edu22 cation may not use funds received under this title to in23 crease its endowment. 

24 (c) ADDITIONAL PROHIBITION.—An institution of 

25 higher education may not use funds received under this 

26 title for construction, renovation, or facility repair. 


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1 SEC. 13005. STATE APPLICATIONS. 

2 (a) IN GENERAL.—The Governor of a State desiring 

3 to receive an allocation under section 13001 shall submit 

4 an annual application at such time, in such manner, and 

5 containing such information as the Secretary may reason6 ably require. 

7 (b) FIRST YEAR APPLICATION.—In the first of such 

8 applications, the Governor shall— 

9 (1) include the assurances described in sub10 section (e); 

11 (2) provide baseline data that demonstrates the 

12 State’s current status in each of the areas described 

13 in such assurances; and 

14 (3) describe how the State intends to use its al15 location. 

16 (c) SECOND YEAR APPLICATION.—In the second year 

17 application, the Governor shall— 

18 (1) include the assurances described in sub19 section (e); and 

20 (2) describe how the State intends to use its al21 location. 

22 (d) INCENTIVE GRANT APPLICATION.—The Governor 

23 of a State seeking a grant under section 13006 shall— 

24 (1) submit an application for consideration; 

25 (2) describe the status of the State’s progress 

26 in each of the areas described in subsection (e), and 


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1 the strategies the State is employing to help ensure 

2 that high-need students in the State continue mak3 ing progress towards meeting the State’s student 

4 academic achievement standards; 

5 (3) describe how the State would use its grant 

6 funding, including how it will allocate the funds to 

7 give priority to high-need schools and local edu8 cational agencies; and 

9 (4) include a plan for evaluating its progress in 

10 closing achievement gaps. 

11 (e) ASSURANCES.—An application under subsection 

12 (b) or (c) shall include the following assurances: 

13 (1) MAINTENANCE OF EFFORT.— 

14 (A) ELEMENTARY AND SECONDARY EDU15 CATION.—The State will, in each of fiscal years 

16 2009 and 2010, maintain State support for ele17 mentary and secondary education at least at 

18 the level of such support in fiscal year 2006. 

19 (B) HIGHER EDUCATION.—The State will, 

20 in each of fiscal years 2009 and 2010, maintain 

21 State support for public institutions of higher 

22 education (not including support for capital 

23 projects or for research and development) at 

24 least at the level of such support in fiscal year 

25 2006. 


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1 (2) ACHIEVING EQUITY IN TEACHER DISTRIBU2 TION.—The State will take actions to comply with 

3 section 1111(b)(8)(C) of ESEA (20 U.S.C. 

4 6311(b)(8)(C)) in order to address inequities in the 

5 distribution of teachers between high-and low-pov6 erty schools, and to ensure that low-income and mi7 nority children are not taught at higher rates than 

8 other children by inexperienced, unqualified, or out9 of-field teachers. 

10 (3) IMPROVING COLLECTION AND USE OF

11 DATA.—The State will establish a longitudinal data 

12 system that includes the elements described in sec13 tion 6401(e)(2)(D) of the America COMPETES Act 

14 (20 U.S.C. 9871). 

15 (4) ASSESSMENTS.—The State— 

16 (A) will enhance the quality of academic 

17 assessments described in section 1111(b)(3) of 

18 ESEA (20 U.S.C. 6311(b)(3)) through activi19 ties such as those described in section 6112(a) 

20 of such Act (20 U.S.C. 7301a(a)); and 

21 (B) will comply with the requirements of 

22 paragraphs 3(C)(ix) and (6) of section 1111(b) 

23 of ESEA (20 U.S.C. 6311(b)) and section 

24 612(a)(16) of IDEA (20 U.S.C. 1412(a)(16)) 

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1 ities and limited English proficient students in 

2 State assessments, the development of valid and 

3 reliable assessments for those students, and the 

4 provision of accommodations that enable their 

5 participation in State assessments. 

6 SEC. 13006. STATE INCENTIVE GRANTS. 

7 (a) IN GENERAL.—From the total amount reserved 

8 under section 13001(c) that is not used for section 13007, 

9 the Secretary shall, in fiscal year 2010, make grants to 

10 States that have made significant progress in meeting the 

11 objectives of paragraphs (2), (3), and (4) of section 

12 13005(e). 

13 (b) BASIS FOR GRANTS.—The Secretary shall deter14 mine which States receive grants under this section, and 

15 the amount of those grants, on the basis of information 

16 provided in State applications under section 13005 and 

17 such other criteria as the Secretary determines appro18 priate. 

19 (c) SUBGRANTS TO LOCAL EDUCATIONAL AGEN20 CIES.—Each State receiving a grant under this section 

21 shall use at least 50 percent of the grant to provide local 

22 educational agencies in the State with subgrants based on 

23 their relative shares of funding under part A of title I of 

24 ESEA (20 U.S.C. 6311 et seq.) for the most recent year. 


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1 SEC. 13007. INNOVATION FUND. 

2 (a) IN GENERAL.— 

3 (1) PROGRAM ESTABLISHED.—From the total 

4 amount reserved under section 13001(c), the Sec5 retary may reserve up to $325,000,000 each year to 

6 establish an Innovation Fund, which shall consist of 

7 academic achievement awards that recognize States, 

8 local educational agencies, or schools that meet the 

9 requirements described in subsection (b). 

10 (2) BASIS FOR AWARDS.—The Secretary shall 

11 make awards to States, local educational agencies, 

12 or schools that have made significant gains in clos13 ing the achievement gap as described in subsection 

14 (b)(1)— 

15 (A) to allow such States, local educational 

16 agencies, and schools to expand their work and 

17 serve as models for best practices; 

18 (B) to allow such States, local educational 

19 agencies, and schools to work in partnership 

20 with the private sector and the philanthropic 

21 community; and 

22 (C) to identify and document best practices 

23 that can be shared, and taken to scale based on 

24 demonstrated success. 

25 (b) ELIGIBILITY.—To be eligible for such an award, 

26 a State, local educational agency, or school shall— 


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1 (1) have significantly closed the achievement 

2 gaps between groups of students described in section 

3 1111(b)(2) of ESEA (20 U.S.C. 6311(b)(2)); 

4 (2) have exceeded the State’s annual measur5 able objectives consistent with such section 

6 1111(b)(2) for 2 or more consecutive years or have 

7 demonstrated success in significantly increasing stu8 dent academic achievement for all groups of stu9 dents described in such section through another 

10 measure, such as measures described in section 

11 1111(c)(2) of ESEA; 

12 (3) have made significant improvement in other 

13 areas, such as graduation rates or increased recruit14 ment and placement of high-quality teachers and 

15 school leaders, as demonstrated with meaningful 

16 data; and 

17 (4) demonstrate that they have established 

18 partnerships with the private sector, which may in19 clude philanthropic organizations, and that the pri20 vate sector will provide matching funds in order to 

21 help bring results to scale. 

22 SEC. 13008. STATE REPORTS. 

23 For each year of the program under this title, a State 

24 receiving funds under this title shall submit a report to 


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1 the Secretary, at such time and in such manner as the 

2 Secretary may require, that describes— 

3 (1) the uses of funds provided under this title 

4 within the State; 

5 (2) how the State distributed the funds it re6 ceived under this title; 

7 (3) the number of jobs that the Governor esti8 mates were saved or created with funds the State re9 ceived under this title; 

10 (4) tax increases that the Governor estimates 

11 were averted because of the availability of funds 

12 from this title; 

13 (5) the State’s progress in reducing inequities 

14 in the distribution of teachers, in implementing a 

15 State student longitudinal data system, and in devel16 oping and implementing valid and reliable assess17 ments for limited English proficient students and 

18 children with disabilities; 

19 (6) the tuition and fee increases for in-State 

20 students imposed by public institutions of higher 

21 education in the State during the period of avail22 ability of funds under this title, and a description of 

23 any actions taken by the State to limit those in24 creases; and 


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1 (7) the extent to which public institutions of 

2 higher education maintained, increased, or decreased 

3 enrollment of in-State students, including students 

4 eligible for Pell Grants or other need-based financial 

5 assistance. 

6 SEC. 13009. EVALUATION. 

7 The Comptroller General of the United States shall 

8 conduct evaluations of the programs under sections 13006 

9 and 13007 which shall include, but not be limited to, the 

10 criteria used for the awards made, the States selected for 

11 awards, award amounts, how each State used the award 

12 received, and the impact of this funding on the progress 

13 made toward closing achievement gaps. 

14 SEC. 13010. SECRETARY’S REPORT TO CONGRESS. 

15 The Secretary shall submit a report to the Committee 

16 on Education and Labor of the House of Representatives, 

17 the Committee on Health, Education, Labor, and Pen18 sions of the Senate, and the Committees on Appropria19 tions of the House of Representatives and of the Senate, 

20 not less than 6 months following the submission of State 

21 reports, that evaluates the information provided in the 

22 State reports under section 13008. 


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1 SEC. 13011. PROHIBITION ON PROVISION OF CERTAIN AS2 SISTANCE. 

3 No recipient of funds under this title shall use such 

4 funds to provide financial assistance to students to attend 

5 private elementary or secondary schools. 

6 SEC. 13012. DEFINITIONS. 

7 Except as otherwise provided in this title, as used in 

8 this title— 

9 (1) the term ‘‘institution of higher education’’ 

10 has the meaning given such term in section 101 of 

11 the Higher Education Act of 1965 (20 U.S.C. 

12 1001); 

13 (2) the term ‘‘Secretary’’ means the Secretary 

14 of Education; 

15 (3) the term ‘‘State’’ means each of the 50 

16 States, the District of Columbia, and the Common17 wealth of Puerto Rico; and 

18 (4) any other term used in this title that is de19 fined in section 9101 of ESEA (20 U.S.C. 7801) 

20 shall have the meaning given the term in that sec21 tion. 


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1 DIVISION B—OTHER 

2 PROVISIONS 

3 TITLE I—TAX PROVISIONS 

4 SEC. 1000. SHORT TITLE, ETC. 

5 (a) SHORT TITLE.—This title may be cited as the 

6 ‘‘American Recovery and Reinvestment Tax Act of 2009’’. 

7 (b) REFERENCE.—Except as otherwise expressly pro8 vided, whenever in this title an amendment or repeal is 

9 expressed in terms of an amendment to, or repeal of, a 

10 section or other provision, the reference shall be consid11 ered to be made to a section or other provision of the In12 ternal Revenue Code of 1986. 

13 (c) TABLE OF CONTENTS.—The table of contents for 

14 this title is as follows: 

Sec. 1000. Short title, etc. 

Subtitle A—Making Work Pay 

Sec. 1001. Making work pay credit. 

Subtitle B—Additional Tax Relief for Families With Children 

Sec. 1101. Increase in earned income tax credit. 

Sec. 1102. Increase of refundable portion of child credit. 

Subtitle C—American Opportunity Tax Credit 

Sec. 1201. American opportunity tax credit. 

Subtitle D—Housing Incentives 

Sec. 1301. Waiver of requirement to repay first-time homebuyer credit. 

Sec. 1302. Coordination of low-income housing credit and low-income housing 

grants. 

Subtitle E—Tax Incentives for Business 

PART 1—TEMPORARY INVESTMENT INCENTIVES

Sec. 1401. Special allowance for certain property acquired during 2009. 


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Sec. 1402. Temporary increase in limitations on expensing of certain depreciable business assets. 

PART 2—5-YEAR CARRYBACK OF OPERATING LOSSES

Sec. 1411. 5-year carryback of operating losses. 

Sec. 1412. Exception for TARP recipients. 

PART 3—INCENTIVES FOR NEW JOBS

Sec. 1421. Incentives to hire unemployed veterans and disconnected youth. 

PART 4—CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON

CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE

Sec. 1431. Clarification of regulations related to limitations on certain built-in 

losses following an ownership change. 

Subtitle F—Fiscal Relief for State and Local Governments 

PART 1—IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS

Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of 

financial institutions. 

Sec. 1502. Modification of small issuer exception to tax-exempt interest expense 

allocation rules for financial institutions. 

Sec. 1503. Temporary modification of alternative minimum tax limitations on 

tax-exempt bonds. 

PART 2—TAX CREDIT BONDS FOR SCHOOLS

Sec. 1511. Qualified school construction bonds. 

Sec. 1512. Extension and expansion of qualified zone academy bonds. 

PART 3—TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS

Sec. 1521. Taxable bond option for governmental bonds. 

PART 4—RECOVERY ZONE BONDS

Sec. 1531. Recovery zone bonds. 

Sec. 1532. Tribal economic development bonds. 

PART 5—REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS

Sec. 1541. Repeal of withholding tax on government contractors. 

Subtitle G—Energy Incentives 

PART 1—RENEWABLE ENERGY INCENTIVES

Sec. 1601. Extension of credit for electricity produced from certain renewable 

resources. 

Sec. 1602. Election of investment credit in lieu of production credit. 

Sec. 1603. Repeal of certain limitations on credit for renewable energy property. 

Sec. 1604. Coordination with renewable energy grants. 

PART 2—INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY

BONDS AND QUALIFIED ENERGY CONSERVATION BONDS


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Sec. 1611. Increased limitation on issuance of new clean renewable energy 

bonds. 

Sec. 1612. Increased limitation and expansion of qualified energy conservation 

bonds. 

PART 3—ENERGY CONSERVATION INCENTIVES

Sec. 1621. Extension and modification of credit for nonbusiness energy property. 

Sec. 1622. Modification of credit for residential energy efficient property. 

Sec. 1623. Temporary increase in credit for alternative fuel vehicle refueling 

property. 

PART 4—ENERGY RESEARCH INCENTIVES

Sec. 1631. Increased research credit for energy research. 

Subtitle H—Other Provisions 

PART 1—APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS

FINANCED WITH CERTAIN TAX-FAVORED BONDS

Sec. 1701. Application of certain labor standards to projects financed with certain tax-favored bonds. 

PART 2—GRANTS TO PROVIDE FINANCING FOR LOW-INCOME HOUSING

Sec. 1711. Grants to States for low-income housing projects in lieu of low-income housing credit allocations for 2009. 

PART 3—GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX

CREDITS

Sec. 1721. Grants for specified energy property in lieu of tax credits. 

PART 4—STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF

THIS ACT

Sec. 1731. Study of economic, employment, and related effects of this Act. 

1 Subtitle A—Making Work Pay 

2 SEC. 1001. MAKING WORK PAY CREDIT. 

3 (a) IN GENERAL.—Subpart C of part IV of sub4 chapter A of chapter 1 is amended by inserting after sec5 tion 36 the following new section: 

6 ‘‘SEC. 36A. MAKING WORK PAY CREDIT. 

7 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli8 gible individual, there shall be allowed as a credit against 


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1 the tax imposed by this subtitle for the taxable year an 

2 amount equal to the lesser of— 

3 ‘‘(1) 6.2 percent of earned income of the tax4 payer, or 

5 ‘‘(2) $500 ($1,000 in the case of a joint re6 turn). 

7 ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED

8 GROSS INCOME.— 

9 ‘‘(1) IN GENERAL.—The amount allowable as a 

10 credit under subsection (a) (determined without re11 gard to this paragraph) for the taxable year shall be 

12 reduced (but not below zero) by 2 percent of so 

13 much of the taxpayer’s modified adjusted gross in14 come as exceeds $75,000 ($150,000 in the case of 

15 a joint return). 

16 ‘‘(2) MODIFIED ADJUSTED GROSS INCOME.— 

17 For purposes of subparagraph (A), the term ‘modi18 fied adjusted gross income’ means the adjusted 

19 gross income of the taxpayer for the taxable year in20 creased by any amount excluded from gross income 

21 under section 911, 931, or 933. 

22 ‘‘(c) DEFINITIONS.—For purposes of this section— 

23 ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

24 individual’ means any individual other than— 

25 ‘‘(A) any nonresident alien individual, 


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1 ‘‘(B) any individual with respect to whom 

2 a deduction under section 151 is allowable to 

3 another taxpayer for a taxable year beginning 

4 in the calendar year in which the individual’s 

5 taxable year begins, and 

6 ‘‘(C) an estate or trust. 

7 Such term shall not include any individual unless the 

8 requirements of section 32(c)(1)(E) are met with re9 spect to such individual. 

10 ‘‘(2) EARNED INCOME.—The term ‘earned in11 come’ has the meaning given such term by section 

12 32(c)(2), except that such term shall not include net 

13 earnings from self-employment which are not taken 

14 into account in computing taxable income. For pur15 poses of the preceding sentence, any amount ex16 cluded from gross income by reason of section 112 

17 shall be treated as earned income which is taken 

18 into account in computing taxable income for the 

19 taxable year. 

20 ‘‘(d) TERMINATION.—This section shall not apply to 

21 taxable years beginning after December 31, 2010.’’. 

22 (b) TREATMENT OF POSSESSIONS.— 

23 (1) PAYMENTS TO POSSESSIONS.— 

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1 sion of the United States with a mirror code 

2 tax system amounts equal to the loss to that 

3 possession by reason of the amendments made 

4 by this section with respect to taxable years be5 ginning in 2009 and 2010. Such amounts shall 

6 be determined by the Secretary of the Treasury 

7 based on information provided by the govern8 ment of the respective possession. 

9 (B) OTHER POSSESSIONS.—The Secretary 

10 of the Treasury shall pay to each possession of 

11 the United States which does not have a mirror 

12 code tax system amounts estimated by the Sec13 retary of the Treasury as being equal to the ag14 gregate benefits that would have been provided 

15 to residents of such possession by reason of the 

16 amendments made by this section for taxable 

17 years beginning in 2009 and 2010 if a mirror 

18 code tax system had been in effect in such pos19 session. The preceding sentence shall not apply 

20 with respect to any possession of the United 

21 States unless such possession has a plan, which 

22 has been approved by the Secretary of the 

23 Treasury, under which such possession will 

24 promptly distribute such payments to the resi25 dents of such possession. 


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1 (2) COORDINATION WITH CREDIT ALLOWED

2 AGAINST UNITED STATES INCOME TAXES.—No cred3 it shall be allowed against United States income 

4 taxes for any taxable year under section 36A of the 

5 Internal Revenue Code of 1986 (as added by this 

6 section) to any person— 

7 (A) to whom a credit is allowed against 

8 taxes imposed by the possession by reason of 

9 the amendments made by this section for such 

10 taxable year, or 

11 (B) who is eligible for a payment under a 

12 plan described in paragraph (1)(B) with respect 

13 to such taxable year. 

14 (3) DEFINITIONS AND SPECIAL RULES.— 

15 (A) POSSESSION OF THE UNITED

16 STATES.—For purposes of this subsection, the 

17 term ‘‘possession of the United States’’ includes 

18 the Commonwealth of Puerto Rico and the 

19 Commonwealth of the Northern Mariana Is20 lands. 

21 (B) MIRROR CODE TAX SYSTEM.—For pur22 poses of this subsection, the term ‘‘mirror code 

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1 ity of the residents of such possession under 

2 such system is determined by reference to the 

3 income tax laws of the United States as if such 

4 possession were the United States. 

5 (C) TREATMENT OF PAYMENTS.—For pur6 poses of section 1324(b)(2) of title 31, United 

7 States Code, the payments under this sub8 section shall be treated in the same manner as 

9 a refund due from the credit allowed under sec10 tion 36A of the Internal Revenue Code of 1986 

11 (as added by this section). 

12 (c) REFUNDS DISREGARDED IN THE ADMINISTRA13 TION OF FEDERAL PROGRAMS AND FEDERALLY AS14 SISTED PROGRAMS.—Any credit or refund allowed or 

15 made to any individual by reason of section 36A of the 

16 Internal Revenue Code of 1986 (as added by this section) 

17 or by reason of subsection (b) of this section shall not be 

18 taken into account as income and shall not be taken into 

19 account as resources for the month of receipt and the fol20 lowing 2 months, for purposes of determining the eligi21 bility of such individual or any other individual for benefits 

22 or assistance, or the amount or extent of benefits or assist23 ance, under any Federal program or under any State or 

24 local program financed in whole or in part with Federal 

25 funds. 


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1 (d) CONFORMING AMENDMENTS.— 

2 (1) Section 6211(b)(4)(A) is amended by insert3 ing ‘‘36A,’’ after ‘‘36,’’. 

4 (2) Section 1324(b)(2) of title 31, United 

5 States Code, is amended by inserting ‘‘36A,’’ after 

6 ‘‘36,’’. 

7 (3) The table of sections for subpart C of part 

8 IV of subchapter A of chapter 1 is amended by in9 serting after the item relating to section 36 the fol10 lowing new item: 

‘‘Sec. 36A. Making work pay credit.’’. 

11 (e) EFFECTIVE DATE.—This section shall apply to 

12 taxable years beginning after December 31, 2008. 

13 Subtitle B—Additional Tax Relief 

14 for Families With Children 

15 SEC. 1101. INCREASE IN EARNED INCOME TAX CREDIT. 

16 (a) IN GENERAL.—Subsection (b) of section 32 is 

17 amended by adding at the end the following new para18 graph: 

19 ‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 

20 the case of any taxable year beginning in 2009 or 

21 2010— 

22 ‘‘(A) INCREASED CREDIT PERCENTAGE

23 FOR 3 OR MORE QUALIFYING CHILDREN.—In 

24 the case of a taxpayer with 3 or more qualifying 

25 children, the credit percentage is 45 percent. 


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1 ‘‘(B) REDUCTION OF MARRIAGE PEN2 ALTY.— 

3 ‘‘(i) IN GENERAL.—The dollar amount 

4 in effect under paragraph (2)(B) shall be 

5 $5,000. 

6 ‘‘(ii) INFLATION ADJUSTMENT.—In 

7 the case of any taxable year beginning in 

8 2010, the $5,000 amount in clause (i) 

9 shall be increased by an amount equal to— 

10 ‘‘(I) such dollar amount, multi11 plied by 

12 ‘‘(II) the cost of living adjust13 ment determined under section 1(f)(3) 

14 for the calendar year in which the tax15 able year begins determined by sub16 stituting ‘calendar year 2008’ for ‘cal17 endar year 1992’ in subparagraph (B) 

18 thereof. 

19 ‘‘(iii) ROUNDING.—Subparagraph (A) 

20 of subsection (j)(2) shall apply after taking 

21 into account any increase under clause 

22 (ii).’’. 

23 (b) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to taxable years beginning after 

25 December 31, 2008. 


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1 SEC. 1102. INCREASE OF REFUNDABLE PORTION OF CHILD 

2 CREDIT. 

3 (a) IN GENERAL.—Paragraph (4) of section 24(d) is 

4 amended to read as follows: 

5 ‘‘(4) SPECIAL RULE FOR 2009 AND 2010.—Not6 withstanding paragraph (3), in the case of any tax7 able year beginning in 2009 or 2010, the dollar 

8 amount in effect for such taxable year under para9 graph (1)(B)(i) shall be zero.’’. 

10 (b) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years beginning after 

12 December 31, 2008. 

13 Subtitle C—American Opportunity 

14 Tax Credit 

15 SEC. 1201. AMERICAN OPPORTUNITY TAX CREDIT. 

16 (a) IN GENERAL.—Section 25A (relating to Hope 

17 scholarship credit) is amended by redesignating subsection 

18 (i) as subsection (j) and by inserting after subsection (h) 

19 the following new subsection: 

20 ‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.—In the 

21 case of any taxable year beginning in 2009 or 2010— 

22 ‘‘(1) INCREASE IN CREDIT.—The Hope Scholar23 ship Credit shall be an amount equal to the sum 

24 of— 

25 ‘‘(A) 100 percent of so much of the quali26 fied tuition and related expenses paid by the 


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1 taxpayer during the taxable year (for education 

2 furnished to the eligible student during any 

3 academic period beginning in such taxable year) 

4 as does not exceed $2,000, plus 

5 ‘‘(B) 25 percent of such expenses so paid 

6 as exceeds $2,000 but does not exceed $4,000. 

7 ‘‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF

8 POST-SECONDARY EDUCATION.—Subparagraphs (A) 

9 and (C) of subsection (b)(2) shall be applied by sub10 stituting ‘4’ for ‘2’. 

11 ‘‘(3) QUALIFIED TUITION AND RELATED EX12 PENSES TO INCLUDE REQUIRED COURSE MATE13 RIALS.—Subsection (f)(1)(A) shall be applied by 

14 substituting ‘tuition, fees, and course materials’ for 

15 ‘tuition and fees’. 

16 ‘‘(4) INCREASE IN AGI LIMITS FOR HOPE

17 SCHOLARSHIP CREDIT.—In lieu of applying sub18 section (d) with respect to the Hope Scholarship 

19 Credit, such credit (determined without regard to 

20 this paragraph) shall be reduced (but not below 

21 zero) by the amount which bears the same ratio to 

22 such credit (as so determined) as— 

23 ‘‘(A) the excess of— 


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1 ‘‘(i) the taxpayer’s modified adjusted 

2 gross income (as defined in subsection 

3 (d)(3)) for such taxable year, over 

4 ‘‘(ii) $80,000 ($160,000 in the case of 

5 a joint return), bears to 

6 ‘‘(B) $10,000 ($20,000 in the case of a 

7 joint return). 

8 ‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE

9 MINIMUM TAX.—In the case of a taxable year to 

10 which section 26(a)(2) does not apply, so much of 

11 the credit allowed under subsection (a) as is attrib12 utable to the Hope Scholarship Credit shall not ex13 ceed the excess of— 

14 ‘‘(A) the sum of the regular tax liability 

15 (as defined in section 26(b)) plus the tax im16 posed by section 55, over 

17 ‘‘(B) the sum of the credits allowable 

18 under this subpart (other than this subsection 

19 and sections 23, 25D, and 30D) and section 27 

20 for the taxable year. 

21 Any reference in this section or section 24, 25, 26, 

22 25B, 904, or 1400C to a credit allowable under this 

23 subsection shall be treated as a reference to so much 

24 of the credit allowable under subsection (a) as is at25 tributable to the Hope Scholarship Credit. 


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1 ‘‘(6) PORTION OF CREDIT MADE REFUND2 ABLE.—40 percent of so much of the credit allowed 

3 under subsection (a) as is attributable to the Hope 

4 Scholarship Credit (determined after application of 

5 paragraph (4) and without regard to this paragraph 

6 and section 26(a)(2) or paragraph (5), as the case 

7 may be) shall be treated as a credit allowable under 

8 subpart C (and not allowed under subsection (a)). 

9 The preceding sentence shall not apply to any tax10 payer for any taxable year if such taxpayer is a child 

11 to whom subsection (g) of section 1 applies for such 

12 taxable year. 

13 ‘‘(7) COORDINATION WITH MIDWESTERN DIS14 ASTER AREA BENEFITS.—In the case of a taxpayer 

15 with respect to whom section 702(a)(1)(B) of the 

16 Heartland Disaster Tax Relief Act of 2008 applies 

17 for any taxable year, such taxpayer may elect to 

18 waive the application of this subsection to such tax19 payer for such taxable year.’’. 

20 (b) CONFORMING AMENDMENTS.— 

21 (1) Section 24(b)(3)(B) is amended by inserting 

22 ‘‘25A(i),’’ after ‘‘23,’’. 

23 (2) Section 25(e)(1)(C)(ii) is amended by in24 serting ‘‘25A(i),’’ after ‘‘24,’’. 


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1 (3) Section 26(a)(1) is amended by inserting 

2 ‘‘25A(i),’’ after ‘‘24,’’. 

3 (4) Section 25B(g)(2) is amended by inserting 

4 ‘‘25A(i),’’ after ‘‘23,’’. 

5 (5) Section 904(i) is amended by inserting 

6 ‘‘25A(i),’’ after ‘‘24,’’. 

7 (6) Section 1400C(d)(2) is amended by insert8 ing ‘‘25A(i),’’ after ‘‘24,’’. 

9 (7) Section 1324(b)(2) of title 31, United 

10 States Code, is amended by inserting ‘‘25A,’’ before 

11 ‘‘35’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2008. 

15 (d) APPLICATION OF EGTRRA SUNSET.—The 

16 amendment made by subsection (b)(1) shall be subject to 

17 title IX of the Economic Growth and Tax Relief Reconcili18 ation Act of 2001 in the same manner as the provision 

19 of such Act to which such amendment relates. 

20 (e) TREASURY STUDIES REGARDING EDUCATION IN21 CENTIVES.— 

22 (1) STUDY REGARDING COORDINATION WITH

23 NON-TAX EDUCATIONAL INCENTIVES.—The Sec24 retary of the Treasury, or the Secretary’s delegate, 

25 shall study how to coordinate the credit allowed 


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1 under section 25A of the Internal Revenue Code of 

2 1986 with the Federal Pell Grant program under 

3 section 401 of the Higher Education Act of 1965. 

4 (2) STUDY REGARDING IMPOSITION OF COMMU5 NITY SERVICE REQUIREMENTS.—The Secretary of 

6 the Treasury, or the Secretary’s delegate, shall study 

7 the feasibility of requiring students to perform com8 munity service as a condition of taking their tuition 

9 and related expenses into account under section 25A 

10 of the Internal Revenue Code of 1986. 

11 (3) REPORT.—Not later than 1 year after the 

12 date of the enactment of this Act, the Secretary of 

13 the Treasury, or the Secretary’s delegate, shall re14 port to Congress on the results of the studies con15 ducted under this paragraph. 

16 Subtitle D—Housing Incentives 

17 SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST18 TIME HOMEBUYER CREDIT. 

19 (a) IN GENERAL.—Paragraph (4) of section 36(f) is 

20 amended by adding at the end the following new subpara21 graph: 

22 ‘‘(D) WAIVER OF RECAPTURE FOR PUR23 CHASES IN 2009.—In the case of any credit al24 lowed with respect to the purchase of a prinVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00305 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 cipal residence after December 31, 2008, and 

2 before July 1, 2009— 

3 ‘‘(i) paragraph (1) shall not apply, 

4 and 

5 ‘‘(ii) paragraph (2) shall apply only if 

6 the disposition or cessation described in 

7 paragraph (2) with respect to such resi8 dence occurs during the 36-month period 

9 beginning on the date of the purchase of 

10 such residence by the taxpayer.’’. 

11 (b) CONFORMING AMENDMENT.—Subsection (g) of 

12 section 36 is amended by striking ‘‘subsection (c)’’ and 

13 inserting ‘‘subsections (c) and (f)(4)(D)’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to residences purchased after De16 cember 31, 2008. 

17 SEC. 1302. COORDINATION OF LOW-INCOME HOUSING 

18 CREDIT AND LOW-INCOME HOUSING GRANTS. 

19 Subsection (i) of section 42 of the Internal Revenue 

20 Code of 1986 is amended by adding at the end the fol21 lowing new paragraph: 

22 ‘‘(9) COORDINATION WITH LOW-INCOME HOUS23 ING GRANTS.— 

24 ‘‘(A) REDUCTION IN STATE HOUSING

25 CREDIT CEILING FOR LOW-INCOME HOUSING


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1 GRANTS RECEIVED IN 2009.—For purposes of 

2 this section, the amounts described in clauses 

3 (i) through (iv) of subsection (h)(3)(C) with re4 spect to any State for 2009 shall each be re5 duced by so much of such amount as is taken 

6 into account in determining the amount of any 

7 grant to such State under section 1711 of the 

8 American Recovery and Reinvestment Tax Act 

9 of 2009. 

10 ‘‘(B) SPECIAL RULE FOR BASIS.—Basis of 

11 a qualified low-income building shall not be re12 duced by the amount of any grant described in 

13 subparagraph (A).’’. 

14 Subtitle E—Tax Incentives for 

15 Business 

16 PART 1—TEMPORARY INVESTMENT INCENTIVES 

17 SEC. 1401. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY 

18 ACQUIRED DURING 2009. 

19 (a) IN GENERAL.—Paragraph (2) of section 168(k) 

20 is amended— 

21 (1) by striking ‘‘January 1, 2010’’ and insert22 ing ‘‘January 1, 2011’’, and 

23 (2) by striking ‘‘January 1, 2009’’ each place 

24 it appears and inserting ‘‘January 1, 2010’’. 

25 (b) CONFORMING AMENDMENTS.— 


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1 (1) The heading for subsection (k) of section 

2 168 is amended by striking ‘‘JANUARY 1, 2009’’ and 

3 inserting ‘‘JANUARY 1, 2010’’. 

4 (2) The heading for clause (ii) of section 

5 168(k)(2)(B) is amended by striking ‘‘PRE-JANUARY

6 1, 2009’’ and inserting ‘‘PRE-JANUARY 1, 2010’’. 

7 (3) Subparagraph (D) of section 168(k)(4) is 

8 amended— 

9 (A) by striking ‘‘and’’ at the end of clause 

10 (i), 

11 (B) by redesignating clause (ii) as clause 

12 (v), and 

13 (C) by inserting after clause (i) the fol14 lowing new clauses: 

15 ‘‘(ii) ‘April 1, 2008’ shall be sub16 stituted for ‘January 1, 2008’ in subpara17 graph (A)(iii)(I) thereof, 

18 ‘‘(iii) ‘January 1, 2009’ shall be sub19 stituted for ‘January 1, 2010’ each place it 

20 appears, 

21 ‘‘(iv) ‘January 1, 2010’ shall be sub22 stituted for ‘January 1, 2011’ in subpara23 graph (A)(iv) thereof, and’’. 


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1 (4) Subparagraph (B) of section 168(l)(5) is 

2 amended by striking ‘‘January 1, 2009’’ and insert3 ing ‘‘January 1, 2010’’. 

4 (5) Subparagraph (B) of section 1400N(d)(3) 

5 is amended by striking ‘‘January 1, 2009’’ and in6 serting ‘‘January 1, 2010’’. 

7 (c) EFFECTIVE DATES.— 

8 (1) IN GENERAL.—Except as provided in para9 graph (2), the amendments made by this section 

10 shall apply to property placed in service after De11 cember 31, 2008, in taxable years ending after such 

12 date. 

13 (2) TECHNICAL AMENDMENT.—Section 

14 168(k)(4)(D)(ii) of the Internal Revenue Code of 

15 1986, as added by subsection (b)(3)(C), shall apply 

16 to taxable years ending after March 31, 2008. 

17 SEC. 1402. TEMPORARY INCREASE IN LIMITATIONS ON EX18 PENSING OF CERTAIN DEPRECIABLE BUSI19 NESS ASSETS. 

20 (a) IN GENERAL.—Paragraph (7) of section 179(b) 

21 is amended— 

22 (1) by striking ‘‘2008’’ and inserting ‘‘2008, or 

23 2009’’, and 

24 (2) by striking ‘‘2008’’ in the heading thereof 

25 and inserting ‘‘2008, AND 2009’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2008. 

4 PART 2—5-YEAR CARRYBACK OF OPERATING 

5 LOSSES 

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

7 (a) IN GENERAL.—Subparagraph (H) of section 

8 172(b)(1) is amended to read as follows: 

9 ‘‘(H) CARRYBACK FOR 2008 AND 2009 NET

10 OPERATING LOSSES.— 

11 ‘‘(i) IN GENERAL.—In the case of an 

12 applicable 2008 or 2009 net operating loss 

13 with respect to which the taxpayer has 

14 elected the application of this subpara15 graph— 

16 ‘‘(I) such net operating loss shall 

17 be reduced by 10 percent of such loss 

18 (determined without regard to this 

19 subparagraph), 

20 ‘‘(II) subparagraph (A)(i) shall 

21 be applied by substituting any whole 

22 number elected by the taxpayer which 

23 is more than 2 and less than 6 for ‘2’, 

24 ‘‘(III) subparagraph (E)(ii) shall 

25 be applied by substituting the whole 


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1 number which is one less than the 

2 whole number substituted under sub3 clause (II) for ‘2’, and 

4 ‘‘(IV) subparagraph (F) shall not 

5 apply. 

6 ‘‘(ii) APPLICABLE 2008 OR 2009 NET

7 OPERATING LOSS.—For purposes of this 

8 subparagraph, the term ‘applicable 2008 

9 or 2009 net operating loss’ means— 

10 ‘‘(I) the taxpayer’s net operating 

11 loss for any taxable year ending in 

12 2008 or 2009, or 

13 ‘‘(II) if the taxpayer elects to 

14 have this subclause apply in lieu of 

15 subclause (I), the taxpayer’s net oper16 ating loss for any taxable year begin17 ning in 2008 or 2009. 

18 ‘‘(iii) ELECTION.—Any election under 

19 this subparagraph shall be made in such 

20 manner as may be prescribed by the Sec21 retary, and shall be made by the due date 

22 (including extension of time) for filing the 

23 taxpayer’s return for the taxable year of 

24 the net operating loss. Any such election, 

25 once made, shall be irrevocable. 


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1 ‘‘(iv) COORDINATION WITH ALTER2 NATIVE TAX NET OPERATING LOSS DEDUC3 TION.—In the case of a taxpayer who 

4 elects to have clause (ii)(II) apply, section 

5 56(d)(1)(A)(ii) shall be applied by sub6 stituting ‘ending during 2001 or 2002 or 

7 beginning during 2008 or 2009’ for ‘end8 ing during 2001, 2002, 2008, or 2009’.’’. 

9 (b) ALTERNATIVE TAX NET OPERATING LOSS DE10 DUCTION.—Subclause (I) of section 56(d)(1)(A)(ii) is 

11 amended to read as follows: 

12 ‘‘(I) the amount of such deduc13 tion attributable to the sum of 

14 carrybacks of net operating losses 

15 from taxable years ending during 

16 2001, 2002, 2008, or 2009 and 

17 carryovers of net operating losses to 

18 such taxable years, or’’. 

19 (c) LOSS FROM OPERATIONS OF LIFE INSURANCE

20 COMPANIES.—Subsection (b) of section 810 is amended 

21 by adding at the end the following new paragraph: 

22 ‘‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES.— 

23 ‘‘(A) IN GENERAL.—In the case of an ap24 plicable 2008 or 2009 loss from operations with 


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1 respect to which the taxpayer has elected the 

2 application of this paragraph— 

3 ‘‘(i) such loss from operations shall be 

4 reduced by 10 percent of such loss (deter5 mined without regard to this paragraph), 

6 and 

7 ‘‘(ii) paragraph (1)(A) shall be ap8 plied, at the election of the taxpayer, by 

9 substituting ‘5’ or ‘4’ for ‘3’. 

10 ‘‘(B) APPLICABLE 2008 OR 2009 LOSS FROM

11 OPERATIONS.—For purposes of this paragraph, 

12 the term ‘applicable 2008 or 2009 loss from op13 erations’ means— 

14 ‘‘(i) the taxpayer’s loss from oper15 ations for any taxable year ending in 2008 

16 or 2009, or 

17 ‘‘(ii) if the taxpayer elects to have this 

18 clause apply in lieu of clause (i), the tax19 payer’s loss from operations for any tax20 able year beginning in 2008 or 2009. 

21 ‘‘(C) ELECTION.—Any election under this 

22 paragraph shall be made in such manner as 

23 may be prescribed by the Secretary, and shall 

24 be made by the due date (including extension of 

25 time) for filing the taxpayer’s return for the 


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1 taxable year of the loss from operations. Any 

2 such election, once made, shall be irrevocable. 

3 ‘‘(D) COORDINATION WITH ALTERNATIVE

4 TAX NET OPERATING LOSS DEDUCTION.—In the 

5 case of a taxpayer who elects to have subpara6 graph (B)(ii) apply, section 56(d)(1)(A)(ii) shall 

7 be applied by substituting ‘ending during 2001 

8 or 2002 or beginning during 2008 or 2009’ for 

9 ‘ending during 2001, 2002, 2008, or 2009’.’’. 

10 (d) CONFORMING AMENDMENT.—Section 172 is 

11 amended by striking subsection (k). 

12 (e) EFFECTIVE DATE.— 

13 (1) IN GENERAL.—Except as otherwise pro14 vided in this subsection, the amendments made by 

15 this section shall apply to net operating losses aris16 ing in taxable years ending after December 31, 

17 2007. 

18 (2) ALTERNATIVE TAX NET OPERATING LOSS

19 DEDUCTION.—The amendment made by subsection 

20 (b) shall apply to taxable years ending after 1997. 

21 (3) LOSS FROM OPERATIONS OF LIFE INSUR22 ANCE COMPANIES.—The amendment made by sub23 section (d) shall apply to losses from operations aris24 ing in taxable years ending after December 31, 

25 2007. 


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1 (4) TRANSITIONAL RULE.—In the case of a net 

2 operating loss (or, in the case of a life insurance 

3 company, a loss from operations) for a taxable year 

4 ending before the date of the enactment of this 

5 Act— 

6 (A) any election made under section 

7 172(b)(3) or 810(b)(3) of the Internal Revenue 

8 Code of 1986 with respect to such loss may 

9 (notwithstanding such section) be revoked be10 fore the applicable date, 

11 (B) any election made under section 

12 172(b)(1)(H) or 810(b)(4) of such Code with 

13 respect to such loss shall (notwithstanding such 

14 section) be treated as timely made if made be15 fore the applicable date, and 

16 (C) any application under section 6411(a) 

17 of such Code with respect to such loss shall be 

18 treated as timely filed if filed before the appli19 cable date. 

20 For purposes of this paragraph, the term ‘‘applica21 ble date’’ means the date which is 60 days after the 

22 date of the enactment of this Act. 

23 SEC. 1412. EXCEPTION FOR TARP RECIPIENTS. 

24 The amendments made by this part shall not apply 

25 to— 


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1 (1) any taxpayer if— 

2 (A) the Federal Government acquires, at 

3 any time, an equity interest in the taxpayer 

4 pursuant to the Emergency Economic Stabiliza5 tion Act of 2008, or 

6 (B) the Federal Government acquires, at 

7 any time, any warrant (or other right) to ac8 quire any equity interest with respect to the 

9 taxpayer pursuant to such Act, 

10 (2) the Federal National Mortgage Association 

11 and the Federal Home Loan Mortgage Corporation, 

12 and 

13 (3) any taxpayer which at any time in 2008 or 

14 2009 is a member of the same affiliated group (as 

15 defined in section 1504 of the Internal Revenue 

16 Code of 1986, determined without regard to sub17 section (b) thereof) as a taxpayer described in para18 graph (1) or (2). 

19 PART 3—INCENTIVES FOR NEW JOBS 

20 SEC. 1421. INCENTIVES TO HIRE UNEMPLOYED VETERANS 

21 AND DISCONNECTED YOUTH. 

22 (a) IN GENERAL.—Subsection (d) of section 51 is 

23 amended by adding at the end the following new para24 graph: 


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1 ‘‘(14) CREDIT ALLOWED FOR UNEMPLOYED

2 VETERANS AND DISCONNECTED YOUTH HIRED IN

3 2009 OR 2010.— 

4 ‘‘(A) IN GENERAL.—Any unemployed vet5 eran or disconnected youth who begins work for 

6 the employer during 2009 or 2010 shall be 

7 treated as a member of a targeted group for 

8 purposes of this subpart. 

9 ‘‘(B) DEFINITIONS.—For purposes of this 

10 paragraph— 

11 ‘‘(i) UNEMPLOYED VETERAN.—The 

12 term ‘unemployed veteran’ means any vet13 eran (as defined in paragraph (3)(B), de14 termined without regard to clause (ii) 

15 thereof) who is certified by the designated 

16 local agency as— 

17 ‘‘(I) having been discharged or 

18 released from active duty in the 

19 Armed Forces during 2008, 2009, or 

20 2010, and 

21 ‘‘(II) being in receipt of unem22 ployment compensation under State or 

23 Federal law for not less than 4 weeks 

24 during the 1-year period ending on 

25 the hiring date. 


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1 ‘‘(ii) DISCONNECTED YOUTH.—The 

2 term ‘disconnected youth’ means any indi3 vidual who is certified by the designated 

4 local agency— 

5 ‘‘(I) as having attained age 16 

6 but not age 25 on the hiring date, 

7 ‘‘(II) as not regularly attending 

8 any secondary, technical, or post-sec9 ondary school during the 6-month pe10 riod preceding the hiring date, 

11 ‘‘(III) as not regularly employed 

12 during such 6-month period, and 

13 ‘‘(IV) as not readily employable 

14 by reason of lacking a sufficient num15 ber of basic skills.’’. 

16 (b) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to individuals who begin work for 

18 the employer after December 31, 2008. 


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1 PART 4—CLARIFICATION OF REGULATIONS RE2 LATED TO LIMITATIONS ON CERTAIN BUILT3 IN LOSSES FOLLOWING AN OWNERSHIP 

4 CHANGE 

5 SEC. 1431. CLARIFICATION OF REGULATIONS RELATED TO 

6 LIMITATIONS ON CERTAIN BUILT-IN LOSSES 

7 FOLLOWING AN OWNERSHIP CHANGE. 

8 (a) FINDINGS.—Congress finds as follows: 

9 (1) The delegation of authority to the Secretary 

10 of the Treasury under section 382(m) of the Inter11 nal Revenue Code of 1986 does not authorize the 

12 Secretary to provide exemptions or special rules that 

13 are restricted to particular industries or classes of 

14 taxpayers. 

15 (2) Internal Revenue Service Notice 2008–83 is 

16 inconsistent with the congressional intent in enact17 ing such section 382(m). 

18 (3) The legal authority to prescribe Internal 

19 Revenue Service Notice 2008–83 is doubtful. 

20 (4) However, as taxpayers should generally be 

21 able to rely on guidance issued by the Secretary of 

22 the Treasury legislation is necessary to clarify the 

23 force and effect of Internal Revenue Service Notice 

24 2008–83 and restore the proper application under 

25 the Internal Revenue Code of 1986 of the limitation 


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1 on built-in losses following an ownership change of 

2 a bank. 

3 (b) DETERMINATION OF FORCE AND EFFECT OF IN4 TERNAL REVENUE SERVICE NOTICE 2008–83 EXEMPT5 ING BANKS FROM LIMITATION ON CERTAIN BUILT–IN

6 LOSSES FOLLOWING OWNERSHIP CHANGE.— 

7 (1) IN GENERAL.—Internal Revenue Service 

8 Notice 2008–83— 

9 (A) shall be deemed to have the force and 

10 effect of law with respect to any ownership 

11 change (as defined in section 382(g) of the In12 ternal Revenue Code of 1986) occurring on or 

13 before January 16, 2009, and 

14 (B) shall have no force or effect with re15 spect to any ownership change after such date. 

16 (2) BINDING CONTRACTS.—Notwithstanding 

17 paragraph (1), Internal Revenue Service Notice 

18 2008–83 shall have the force and effect of law with 

19 respect to any ownership change (as so defined) 

20 which occurs after January 16, 2009 if such 

21 change— 

22 (A) is pursuant to a written binding con23 tract entered into on or before such date, or 

24 (B) is pursuant to a written agreement en25 tered into on or before such date and such 


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1 agreement was described on or before such date 

2 in a public announcement or in a filing with the 

3 Securities and Exchange Commission required 

4 by reason of such ownership change. 

5 Subtitle F—Fiscal Relief for State 

6 and Local Governments 

7 PART 1—IMPROVED MARKETABILITY FOR TAX8 EXEMPT BONDS 

9 SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX10 EXEMPT INTEREST EXPENSE OF FINANCIAL 

11 INSTITUTIONS. 

12 (a) IN GENERAL.—Subsection (b) of section 265 is 

13 amended by adding at the end the following new para14 graph: 

15 ‘‘(7) DE MINIMIS EXCEPTION FOR BONDS

16 ISSUED DURING 2009 OR 2010.— 

17 ‘‘(A) IN GENERAL.—In applying paragraph 

18 (2)(A), there shall not be taken into account 

19 tax-exempt obligations issued during 2009 or 

20 2010. 

21 ‘‘(B) LIMITATION.—The amount of tax-ex22 empt obligations not taken into account by rea23 son of subparagraph (A) shall not exceed 2 per24 cent of the amount determined under para25 graph (2)(B). 


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1 ‘‘(C) REFUNDINGS.—For purposes of this 

2 paragraph, a refunding bond (whether a current 

3 or advance refunding) shall be treated as issued 

4 on the date of the issuance of the refunded 

5 bond (or in the case of a series of refundings, 

6 the original bond).’’. 

7 (b) TREATMENT AS FINANCIAL INSTITUTION PREF8 ERENCE ITEM.—Clause (iv) of section 291(e)(1)(B) is 

9 amended by adding at the end the following: ‘‘That por10 tion of any obligation not taken into account under para11 graph (2)(A) of section 265(b) by reason of paragraph (7) 

12 of such section shall be treated for purposes of this section 

13 as having been acquired on August 7, 1986.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to obligations issued after Decem16 ber 31, 2008. 

17 SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION 

18 TO TAX-EXEMPT INTEREST EXPENSE ALLOCA19 TION RULES FOR FINANCIAL INSTITUTIONS. 

20 (a) IN GENERAL.—Paragraph (3) of section 265(b) 

21 (relating to exception for certain tax-exempt obligations) 

22 is amended by adding at the end the following new sub23 paragraph: 

24 ‘‘(G) SPECIAL RULES FOR OBLIGATIONS

25 ISSUED DURING 2009 AND 2010.— 


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1 ‘‘(i) INCREASE IN LIMITATION.—In 

2 the case of obligations issued during 2009 

3 or 2010, subparagraphs (C)(i), (D)(i), and 

4 (D)(iii)(II) shall each be applied by sub5 stituting ‘$30,000,000’ for ‘$10,000,000’. 

6 ‘‘(ii) QUALIFIED 501(C)(3) BONDS

7 TREATED AS ISSUED BY EXEMPT ORGANI8 ZATION.—In the case of a qualified 

9 501(c)(3) bond (as defined in section 145) 

10 issued during 2009 or 2010, this para11 graph shall be applied by treating the 

12 501(c)(3) organization for whose benefit 

13 such bond was issued as the issuer. 

14 ‘‘(iii) SPECIAL RULE FOR QUALIFIED

15 FINANCINGS.—In the case of a qualified fi16 nancing issue issued during 2009 or 

17 2010— 

18 ‘‘(I) subparagraph (F) shall not 

19 apply, and 

20 ‘‘(II) any obligation issued as a 

21 part of such issue shall be treated as 

22 a qualified tax-exempt obligation if 

23 the requirements of this paragraph 

24 are met with respect to each qualified 

25 portion of the issue (determined by 


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1 treating each qualified portion as a 

2 separate issue issued by the qualified 

3 borrower with respect to which such 

4 portion relates). 

5 ‘‘(iv) QUALIFIED FINANCING ISSUE.— 

6 For purposes of this subparagraph, the 

7 term ‘qualified financing issue’ means any 

8 composite, pooled, or other conduit financ9 ing issue the proceeds of which are used 

10 directly or indirectly to make or finance 

11 loans to one or more ultimate borrowers 

12 each of whom is a qualified borrower. 

13 ‘‘(v) QUALIFIED PORTION.—For pur14 poses of this subparagraph, the term 

15 ‘qualified portion’ means that portion of 

16 the proceeds which are used with respect 

17 to each qualified borrower under the issue. 

18 ‘‘(vi) QUALIFIED BORROWER.—For 

19 purposes of this subparagraph, the term 

20 ‘qualified borrower’ means a borrower 

21 which is a State or political subdivision 

22 thereof or an organization described in sec23 tion 501(c)(3) and exempt from taxation 

24 under section 501(a).’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to obligations issued after Decem3 ber 31, 2008. 

4 SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE 

5 MINIMUM TAX LIMITATIONS ON TAX-EXEMPT 

6 BONDS. 

7 (a) INTEREST ON PRIVATE ACTIVITY BONDS ISSUED

8 DURING 2009 AND 2010 NOT TREATED AS TAX PREF9 ERENCE ITEM.—Subparagraph (C) of section 57(a)(5) is 

10 amended by adding at the end a new clause: 

11 ‘‘(vi) EXCEPTION FOR BONDS ISSUED

12 IN 2009 AND 2010.—For purposes of clause 

13 (i), the term ‘private activity bond’ shall 

14 not include any bond issued after Decem15 ber 31, 2008, and before January 1, 2011. 

16 For purposes of the preceding sentence, a 

17 refunding bond (whether a current or ad18 vance refunding) shall be treated as issued 

19 on the date of the issuance of the refunded 

20 bond (or in the case of a series of 

21 refundings, the original bond).’’. 

22 (b) NO ADJUSTMENT TO ADJUSTED CURRENT

23 EARNINGS FOR INTEREST ON TAX-EXEMPT BONDS

24 ISSUED AFTER 2008.—Subparagraph (B) of section 


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1 56(g)(4) is amended by adding at the end the following 

2 new clause: 

3 ‘‘(iv) TAX EXEMPT INTEREST ON

4 BONDS ISSUED IN 2009 AND 2010.—Clause 

5 (i) shall not apply in the case of any inter6 est on a bond issued after December 31, 

7 2008, and before January 1, 2011. For 

8 purposes of the preceding sentence, a re9 funding bond (whether a current or ad10 vance refunding) shall be treated as issued 

11 on the date of the issuance of the refunded 

12 bond (or in the case of a series of 

13 refundings, the original bond).’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to obligations issued after Decem16 ber 31, 2008. 

17 PART 2—TAX CREDIT BONDS FOR SCHOOLS 

18 SEC. 1511. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

19 (a) IN GENERAL.—Subpart I of part IV of sub20 chapter A of chapter 1 is amended by adding at the end 

21 the following new section: 

22 ‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

23 ‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.— 

24 For purposes of this subchapter, the term ‘qualified school 


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1 construction bond’ means any bond issued as part of an 

2 issue if— 

3 ‘‘(1) 100 percent of the available project pro4 ceeds of such issue are to be used for the construc5 tion, rehabilitation, or repair of a public school facil6 ity or for the acquisition of land on which such a fa7 cility is to be constructed with part of the proceeds 

8 of such issue, 

9 ‘‘(2) the bond is issued by a State or local gov10 ernment within the jurisdiction of which such school 

11 is located, and 

12 ‘‘(3) the issuer designates such bond for pur13 poses of this section. 

14 ‘‘(b) LIMITATION ON AMOUNT OF BONDS DES15 IGNATED.—The maximum aggregate face amount of 

16 bonds issued during any calendar year which may be des17 ignated under subsection (a) by any issuer shall not exceed 

18 the sum of— 

19 ‘‘(1) the limitation amount allocated under sub20 section (d) for such calendar year to such issuer, 

21 and 

22 ‘‘(2) if such issuer is a large local educational 

23 agency (as defined in subsection (e)(4)) or is issuing 

24 on behalf of such an agency, the limitation amount 


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1 allocated under subsection (e) for such calendar year 

2 to such agency. 

3 ‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS

4 DESIGNATED.—There is a national qualified school con5 struction bond limitation for each calendar year. Such lim6 itation is— 

7 ‘‘(1) $11,000,000,000 for 2009, 

8 ‘‘(2) $11,000,000,000 for 2010, and 

9 ‘‘(3) except as provided in subsection (f), zero 

10 after 2010. 

11 ‘‘(d) 60 PERCENT OF LIMITATION ALLOCATED

12 AMONG STATES.— 

13 ‘‘(1) IN GENERAL.—60 percent of the limitation 

14 applicable under subsection (c) for any calendar year 

15 shall be allocated by the Secretary among the States 

16 in proportion to the respective numbers of children 

17 in each State who have attained age 5 but not age 

18 18 for the most recent fiscal year ending before such 

19 calendar year. The limitation amount allocated to a 

20 State under the preceding sentence shall be allocated 

21 by the State to issuers within such State. 

22 ‘‘(2) MINIMUM ALLOCATIONS TO STATES.— 

23 ‘‘(A) IN GENERAL.—The Secretary shall 

24 adjust the allocations under this subsection for 


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1 any calendar year for each State to the extent 

2 necessary to ensure that the sum of— 

3 ‘‘(i) the amount allocated to such 

4 State under this subsection for such year, 

5 and 

6 ‘‘(ii) the aggregate amounts allocated 

7 under subsection (e) to large local edu8 cational agencies in such State for such 

9 year, 

10 is not less than an amount equal to such 

11 State’s adjusted minimum percentage of the 

12 amount to be allocated under paragraph (1) for 

13 the calendar year. 

14 ‘‘(B) ADJUSTED MINIMUM PERCENTAGE.— 

15 A State’s adjusted minimum percentage for any 

16 calendar year is the product of— 

17 ‘‘(i) the minimum percentage de18 scribed in section 1124(d) of the Elemen19 tary and Secondary Education Act of 1965 

20 (20 U.S.C. 6334(d)) for such State for the 

21 most recent fiscal year ending before such 

22 calendar year, multiplied by 

23 ‘‘(ii) 1.68. 

24 ‘‘(3) ALLOCATIONS TO CERTAIN POSSES25 SIONS.—The amount to be allocated under paraVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00329 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 graph (1) to any possession of the United States 

2 other than Puerto Rico shall be the amount which 

3 would have been allocated if all allocations under 

4 paragraph (1) were made on the basis of respective 

5 populations of individuals below the poverty line (as 

6 defined by the Office of Management and Budget). 

7 In making other allocations, the amount to be allo8 cated under paragraph (1) shall be reduced by the 

9 aggregate amount allocated under this paragraph to 

10 possessions of the United States. 

11 ‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In 

12 addition to the amounts otherwise allocated under 

13 this subsection, $200,000,000 for calendar year 

14 2009, and $200,000,000 for calendar year 2010, 

15 shall be allocated by the Secretary of the Interior for 

16 purposes of the construction, rehabilitation, and re17 pair of schools funded by the Bureau of Indian Af18 fairs. In the case of amounts allocated under the 

19 preceding sentence, Indian tribal governments (as 

20 defined in section 7701(a)(40)) shall be treated as 

21 qualified issuers for purposes of this subchapter. 

22 ‘‘(e) 40 PERCENT OF LIMITATION ALLOCATED

23 AMONG LARGEST SCHOOL DISTRICTS.— 

24 ‘‘(1) IN GENERAL.—40 percent of the limitation 

25 applicable under subsection (c) for any calendar year 


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1 shall be allocated under paragraph (2) by the Sec2 retary among local educational agencies which are 

3 large local educational agencies for such year. 

4 ‘‘(2) ALLOCATION FORMULA.—The amount to 

5 be allocated under paragraph (1) for any calendar 

6 year shall be allocated among large local educational 

7 agencies in proportion to the respective amounts 

8 each such agency received for Basic Grants under 

9 subpart 2 of part A of title I of the Elementary and 

10 Secondary Education Act of 1965 (20 U.S.C. 6331 

11 et seq.) for the most recent fiscal year ending before 

12 such calendar year. 

13 ‘‘(3) ALLOCATION OF UNUSED LIMITATION TO

14 STATE.—The amount allocated under this subsection 

15 to a large local educational agency for any calendar 

16 year may be reallocated by such agency to the State 

17 in which such agency is located for such calendar 

18 year. Any amount reallocated to a State under the 

19 preceding sentence may be allocated as provided in 

20 subsection (d)(1). 

21 ‘‘(4) LARGE LOCAL EDUCATIONAL AGENCY.— 

22 For purposes of this section, the term ‘large local 

23 educational agency’ means, with respect to a cal24 endar year, any local educational agency if such 

25 agency is— 


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1 ‘‘(A) among the 100 local educational 

2 agencies with the largest numbers of children 

3 aged 5 through 17 from families living below 

4 the poverty level, as determined by the Sec5 retary using the most recent data available 

6 from the Department of Commerce that are 

7 satisfactory to the Secretary, or 

8 ‘‘(B) 1 of not more than 25 local edu9 cational agencies (other than those described in 

10 subparagraph (A)) that the Secretary of Edu11 cation determines (based on the most recent 

12 data available satisfactory to the Secretary) are 

13 in particular need of assistance, based on a low 

14 level of resources for school construction, a high 

15 level of enrollment growth, or such other factors 

16 as the Secretary deems appropriate. 

17 ‘‘(f) CARRYOVER OF UNUSED LIMITATION.—If for 

18 any calendar year— 

19 ‘‘(1) the amount allocated under subsection (d) 

20 to any State, exceeds 

21 ‘‘(2) the amount of bonds issued during such 

22 year which are designated under subsection (a) pur23 suant to such allocation, 

24 the limitation amount under such subsection for such 

25 State for the following calendar year shall be increased 


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1 by the amount of such excess. A similar rule shall apply 

2 to the amounts allocated under subsection (d)(4) or (e).’’. 

3 (b) CONFORMING AMENDMENTS.— 

4 (1) Paragraph (1) of section 54A(d) is amended 

5 by striking ‘‘or’’ at the end of subparagraph (C), by 

6 inserting ‘‘or’’ at the end of subparagraph (D), and 

7 by inserting after subparagraph (D) the following 

8 new subparagraph: 

9 ‘‘(E) a qualified school construction 

10 bond,’’. 

11 (2) Subparagraph (C) of section 54A(d)(2) is 

12 amended by striking ‘‘and’’ at the end of clause (iii), 

13 by striking the period at the end of clause (iv) and 

14 inserting ‘‘, and’’, and by adding at the end the fol15 lowing new clause: 

16 ‘‘(v) in the case of a qualified school 

17 construction bond, a purpose specified in 

18 section 54F(a)(1).’’. 

19 (3) The table of sections for subpart I of part 

20 IV of subchapter A of chapter 1 is amended by add21 ing at the end the following new item: 

‘‘Sec. 54F. Qualified school construction bonds.’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to obligations issued after Decem24 ber 31, 2008. 


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1 SEC. 1512. EXTENSION AND EXPANSION OF QUALIFIED 

2 ZONE ACADEMY BONDS. 

3 (a) IN GENERAL.—Section 54E(c)(1) is amended by 

4 striking ‘‘and 2009’’ and inserting ‘‘and $1,400,000,000 

5 for 2009 and 2010’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to obligations issued after Decem8 ber 31, 2008. 

9 PART 3—TAXABLE BOND OPTION FOR 

10 GOVERNMENTAL BONDS 

11 SEC. 1521. TAXABLE BOND OPTION FOR GOVERNMENTAL 

12 BONDS. 

13 (a) IN GENERAL.—Part IV of subchapter A of chap14 ter 1 is amended by adding at the end the following new 

15 subpart: 

16 ‘‘Subpart J—Taxable Bond Option for Governmental 

17 Bonds 

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

18 ‘‘SEC. 54AA. TAXABLE BOND OPTION FOR GOVERNMENTAL 

19 BONDS. 

20 ‘‘(a) IN GENERAL.—If a taxpayer holds a taxable 

21 governmental bond on one or more interest payment dates 

22 of the bond during any taxable year, there shall be allowed 

23 as a credit against the tax imposed by this chapter for 

24 the taxable year an amount equal to the sum of the credits 


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1 determined under subsection (b) with respect to such 

2 dates. 

3 ‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 

4 determined under this subsection with respect to any in5 terest payment date for a taxable governmental bond is 

6 35 percent of the amount of interest payable by the issuer 

7 with respect to such date. 

8 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 

9 ‘‘(1) IN GENERAL.—The credit allowed under 

10 subsection (a) for any taxable year shall not exceed 

11 the excess of— 

12 ‘‘(A) the sum of the regular tax liability 

13 (as defined in section 26(b)) plus the tax im14 posed by section 55, over 

15 ‘‘(B) the sum of the credits allowable 

16 under this part (other than subpart C and this 

17 subpart). 

18 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

19 credit allowable under subsection (a) exceeds the 

20 limitation imposed by paragraph (1) for such taxable 

21 year, such excess shall be carried to the succeeding 

22 taxable year and added to the credit allowable under 

23 subsection (a) for such taxable year (determined be24 fore the application of paragraph (1) for such suc25 ceeding taxable year). 


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1 ‘‘(d) TAXABLE GOVERNMENTAL BOND.— 

2 ‘‘(1) IN GENERAL.—For purposes of this sec3 tion, the term ‘taxable governmental bond’ means 

4 any obligation (other than a private activity bond) 

5 if— 

6 ‘‘(A) the interest on such obligation would 

7 (but for this section) be excludable from gross 

8 income under section 103, and 

9 ‘‘(B) the issuer makes an irrevocable elec10 tion to have this section apply. 

11 ‘‘(2) APPLICABLE RULES.—For purposes of ap12 plying paragraph (1)— 

13 ‘‘(A) a taxable governmental bond shall not 

14 be treated as federally guaranteed by reason of 

15 the credit allowed under subsection (a) or sec16 tion 6432, 

17 ‘‘(B) the yield on a taxable governmental 

18 bond shall be determined without regard to the 

19 credit allowed under subsection (a), and 

20 ‘‘(C) a bond shall not be treated as a tax21 able governmental bond if the issue price has 

22 more than a de minimis amount (determined 

23 under rules similar to the rules of section 

24 1273(a)(3)) of premium over the stated prin25 cipal amount of the bond. 


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1 ‘‘(e) INTEREST PAYMENT DATE.—For purposes of 

2 this section, the term ‘interest payment date’ means any 

3 date on which the holder of record of the taxable govern4 mental bond is entitled to a payment of interest under 

5 such bond. 

6 ‘‘(f) SPECIAL RULES.— 

7 ‘‘(1) INTEREST ON TAXABLE GOVERNMENTAL

8 BONDS INCLUDIBLE IN GROSS INCOME FOR FED9 ERAL INCOME TAX PURPOSES.—For purposes of this 

10 title, interest on any taxable governmental bond 

11 shall be includible in gross income. 

12 ‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 

13 similar to the rules of subsections (f), (g), (h), and 

14 (i) of section 54A shall apply for purposes of the 

15 credit allowed under subsection (a). 

16 ‘‘(g) SPECIAL RULE FOR QUALIFIED BONDS ISSUED

17 BEFORE 2011.—In the case of a qualified bond issued be18 fore January 1, 2011— 

19 ‘‘(1) ISSUER ALLOWED REFUNDABLE CRED20 IT.—In lieu of any credit allowed under this section 

21 with respect to such bond, the issuer of such bond 

22 shall be allowed a credit as provided in section 6432. 

23 ‘‘(2) QUALIFIED BOND.—For purposes of this 

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1 able governmental bond issued as part of an issue 

2 if— 

3 ‘‘(A) 100 percent of the available project 

4 proceeds (as defined in section 54A) of such 

5 issue are to be used for capital expenditures, 

6 and 

7 ‘‘(B) the issuer makes an irrevocable elec8 tion to have this subsection apply. 

9 ‘‘(h) REGULATIONS.—The Secretary may prescribe 

10 such regulations and other guidance as may be necessary 

11 or appropriate to carry out this section and section 

12 6432.’’. 

13 (b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE

14 2011.—Subchapter B of chapter 65, as amended by this 

15 Act, is amended by adding at the end the following new 

16 section: 

17 ‘‘SEC. 6432. CREDIT FOR QUALIFIED BONDS ALLOWED TO 

18 ISSUER. 

19 ‘‘(a) IN GENERAL.—In the case of a qualified bond 

20 issued before January 1, 2011, the issuer of such bond 

21 shall be allowed a credit with respect to each interest pay22 ment under such bond which shall be payable by the Sec23 retary as provided in subsection (b). 

24 ‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay 

25 (contemporaneously with each interest payment date 


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1 under such bond) to the issuer of such bond (or to any 

2 person who makes such interest payments on behalf of the 

3 issuer) 35 percent of the interest payable under such bond 

4 on such date. 

5 ‘‘(c) APPLICATION OF ARBITRAGE RULES.—For pur6 poses of section 148, the yield on a qualified bond shall 

7 be reduced by the credit allowed under this section. 

8 ‘‘(d) INTEREST PAYMENT DATE.—For purposes of 

9 this subsection, the term ‘interest payment date’ means 

10 each date on which interest is payable by the issuer under 

11 the terms of the bond. 

12 ‘‘(e) QUALIFIED BOND.—For purposes of this sub13 section, the term ‘qualified bond’ has the meaning given 

14 such term in section 54AA(h).’’. 

15 (c) CONFORMING AMENDMENTS.— 

16 (1) Section 1324(b)(2) of title 31, United 

17 States Code, is amended by striking ‘‘or 6428’’ and 

18 inserting ‘‘6428, or 6432,’’. 

19 (2) Section 54A(c)(1)(B) is amended by strik20 ing ‘‘subpart C’’ and inserting ‘‘subparts C and J’’. 

21 (3) Sections 54(c)(2), 1397E(c)(2), and 

22 1400N(l)(3)(B) are each amended by striking ‘‘and 

23 I’’ and inserting ‘‘, I, and J’’. 

24 (4) Section 6401(b)(1) is amended by striking 

25 ‘‘and I’’ and inserting ‘‘I, and J’’. 


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1 (5) The table of subparts for part IV of sub2 chapter A of chapter 1 is amended by adding at the 

3 end the following new item: 

‘‘Subpart J. Taxable bond option for governmental bonds.’’. 

4 (6) The table of sections for subchapter B of 

5 chapter 65, as amended by this Act, is amended by 

6 adding at the end the following new item: 

‘‘Sec. 6432. Credit for qualified bonds allowed to issuer on advance basis.’’. 

7 (d) TRANSITIONAL COORDINATION WITH STATE

8 LAW.—Except as otherwise provided by a State after the 

9 date of the enactment of this Act, the interest on any tax10 able governmental bond (as defined in section 54AA of 

11 the Internal Revenue Code of 1986, as added by this sec12 tion) and the amount of any credit determined under such 

13 section with respect to such bond shall be treated for pur14 poses of the income tax laws of such State as being exempt 

15 from Federal income tax. 

16 (e) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to obligations issued after the date 

18 of the enactment of this Act. 

19 PART 4—RECOVERY ZONE BONDS 

20 SEC. 1531. RECOVERY ZONE BONDS. 

21 (a) IN GENERAL.—Subchapter Y of chapter 1 is 

22 amended by adding at the end the following new part: 

23 ‘‘PART III—RECOVERY ZONE BONDS 

‘‘Sec. 1400U–1. Allocation of recovery zone bonds. 


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‘‘Sec. 1400U–2. Recovery zone economic development bonds. 

‘‘Sec. 1400U–3. Recovery zone facility bonds. 

1 ‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. 

2 ‘‘(a) ALLOCATIONS.— 

3 ‘‘(1) IN GENERAL.—The Secretary shall allo4 cate the national recovery zone economic develop5 ment bond limitation and the national recovery zone 

6 facility bond limitation among the States in the pro7 portion that each such State’s 2008 State employ8 ment decline bears to the aggregate of the 2008 

9 State employment declines for all of the States. 

10 ‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For 

11 purposes of this subsection, the term ‘2008 State 

12 employment decline’ means, with respect to any 

13 State, the excess (if any) of— 

14 ‘‘(A) the number of individuals employed 

15 in such State determined for December 2007, 

16 over 

17 ‘‘(B) the number of individuals employed 

18 in such State determined for December 2008. 

19 ‘‘(3) ALLOCATIONS BY STATES.— 

20 ‘‘(A) IN GENERAL.—Each State with re21 spect to which an allocation is made under 

22 paragraph (1) shall reallocate such allocation 

23 among the counties and large municipalities in 

24 such State in the proportion the each such 


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1 county’s or municipality’s 2008 employment de2 cline bears to the aggregate of the 2008 em3 ployment declines for all the counties and mu4 nicipalities in such State. 

5 ‘‘(B) LARGE MUNICIPALITIES.—For pur6 poses of subparagraph (A), the term ‘large mu7 nicipality’ means a municipality with a popu8 lation of more than 100,000. 

9 ‘‘(C) DETERMINATION OF LOCAL EMPLOY10 MENT DECLINES.—For purposes of this para11 graph, the employment decline of any munici12 pality or county shall be determined in the 

13 same manner as determining the State employ14 ment decline under paragraph (2), except that 

15 in the case of a municipality any portion of 

16 which is in a county, such portion shall be 

17 treated as part of such municipality and not 

18 part of such county. 

19 ‘‘(4) NATIONAL LIMITATIONS.— 

20 ‘‘(A) RECOVERY ZONE ECONOMIC DEVEL21 OPMENT BONDS.—There is a national recovery 

22 zone economic development bond limitation of 

23 $10,000,000,000. 


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1 ‘‘(B) RECOVERY ZONE FACILITY BONDS.— 

2 There is a national recovery zone facility bond 

3 limitation of $15,000,000,000. 

4 ‘‘(b) RECOVERY ZONE.—For purposes of this part, 

5 the term ‘recovery zone’ means— 

6 ‘‘(1) any area designated by the issuer as hav7 ing significant poverty, unemployment, home fore8 closures, or general distress, and 

9 ‘‘(2) any area for which a designation as an em10 powerment zone or renewal community is in effect. 

11 ‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT 

12 BONDS. 

13 ‘‘(a) IN GENERAL.—In the case of a recovery zone 

14 economic development bond— 

15 ‘‘(1) such bond shall be treated as a qualified 

16 bond for purposes of section 6432, and 

17 ‘‘(2) subsection (b) of such section shall be ap18 plied by substituting ‘55 percent’ for ‘35 percent’. 

19 ‘‘(b) RECOVERY ZONE ECONOMIC DEVELOPMENT

20 BOND.— 

21 ‘‘(1) IN GENERAL.—For purposes of this sec22 tion, the term ‘recovery zone economic development 

23 bond’ means any taxable governmental bond (as de24 fined in section 54AA(d)) issued before January 1, 

25 2011, as part of issue if— 


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1 ‘‘(A) 100 percent of the available project 

2 proceeds (as defined in section 54A) of such 

3 issue are to be used for one or more qualified 

4 economic development purposes, and 

5 ‘‘(B) the issuer designates such bond for 

6 purposes of this section. 

7 ‘‘(2) LIMITATION ON AMOUNT OF BONDS DES8 IGNATED.—The maximum aggregate face amount of 

9 bonds which may be designated by any issuer under 

10 paragraph (1) shall not exceed the amount of the re11 covery zone economic development bond limitation 

12 allocated to such issuer under section 1400U–1. 

13 ‘‘(c) QUALIFIED ECONOMIC DEVELOPMENT PUR14 POSE.—For purposes of this section, the term ‘qualified 

15 economic development purpose’ means expenditures for 

16 purposes of promoting development or other economic ac17 tivity in a recovery zone, including— 

18 ‘‘(1) capital expenditures paid or incurred with 

19 respect to property located in such zone, 

20 ‘‘(2) expenditures for public infrastructure and 

21 construction of public facilities, and 

22 ‘‘(3) expenditures for job training and edu23 cational programs. 


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1 ‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. 

2 ‘‘(a) IN GENERAL.—For purposes of part IV of sub3 chapter B (relating to tax exemption requirements for 

4 State and local bonds), the term ‘exempt facility bond’ in5 cludes any recovery zone facility bond. 

6 ‘‘(b) RECOVERY ZONE FACILITY BOND.— 

7 ‘‘(1) IN GENERAL.—For purposes of this sec8 tion, the term ‘recovery zone facility bond’ means 

9 any bond issued as part of an issue if— 

10 ‘‘(A) 95 percent or more of the net pro11 ceeds (as defined in section 150(a)(3)) of such 

12 issue are to be used for recovery zone property, 

13 ‘‘(B) such bond is issued before January 1, 

14 2011, and 

15 ‘‘(C) the issuer designates such bond for 

16 purposes of this section. 

17 ‘‘(2) LIMITATION ON AMOUNT OF BONDS DES18 IGNATED.—The maximum aggregate face amount of 

19 bonds which may be designated by any issuer under 

20 paragraph (1) shall not exceed the amount of recov21 ery zone facility bond limitation allocated to such 

22 issuer under section 1400U–1. 

23 ‘‘(c) RECOVERY ZONE PROPERTY.—For purposes of 

24 this section— 


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1 ‘‘(1) IN GENERAL.—The term ‘recovery zone 

2 property’ means any property to which section 168 

3 applies (or would apply but for section 179) if— 

4 ‘‘(A) such property was acquired by the 

5 taxpayer by purchase (as defined in section 

6 179(d)(2)) after the date on which the designa7 tion of the recovery zone took effect, 

8 ‘‘(B) the original use of which in the recov9 ery zone commences with the taxpayer, and 

10 ‘‘(C) substantially all of the use of which 

11 is in the recovery zone and is in the active con12 duct of a qualified business by the taxpayer in 

13 such zone. 

14 ‘‘(2) QUALIFIED BUSINESS.—The term ‘quali15 fied business’ means any trade or business except 

16 that— 

17 ‘‘(A) the rental to others of real property 

18 located in a recovery zone shall be treated as a 

19 qualified business only if the property is not 

20 residential rental property (as defined in section 

21 168(e)(2)), and 

22 ‘‘(B) such term shall not include any trade 

23 or business consisting of the operation of any 

24 facility described in section 144(c)(6)(B). 


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1 ‘‘(3) SPECIAL RULES FOR SUBSTANTIAL REN2 OVATIONS AND SALE-LEASEBACK.—Rules similar to 

3 the rules of subsections (a)(2) and (b) of section 

4 1397D shall apply for purposes of this subsection. 

5 ‘‘(d) NONAPPLICATION OF CERTAIN RULES.—Sec6 tions 146 (relating to volume cap) and 147(d) (relating 

7 to acquisition of existing property not permitted) shall not 

8 apply to any recovery zone facility bond.’’. 

9 (b) CLERICAL AMENDMENT.—The table of parts for 

10 subchapter Y of chapter 1 of such Code is amended by 

11 adding at the end the following new item: 

‘‘PART III. RECOVERY ZONE BONDS.’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to obligations issued after the date 

14 of the enactment of this Act. 

15 SEC. 1532. TRIBAL ECONOMIC DEVELOPMENT BONDS. 

16 (a) IN GENERAL.—Section 7871 is amended by add17 ing at the end the following new subsection: 

18 ‘‘(f) TRIBAL ECONOMIC DEVELOPMENT BONDS.— 

19 ‘‘(1) ALLOCATION OF LIMITATION.— 

20 ‘‘(A) IN GENERAL.—The Secretary shall 

21 allocate the national tribal economic develop22 ment bond limitation among the Indian tribal 

23 governments in such manner as the Secretary, 

24 in consultation with the Secretary of the Inte25 rior, determines appropriate. 


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1 ‘‘(B) NATIONAL LIMITATION.—There is a 

2 national tribal economic development bond limi3 tation of $2,000,000,000. 

4 ‘‘(2) BONDS TREATED AS EXEMPT FROM

5 TAX.—In the case of a tribal economic development 

6 bond— 

7 ‘‘(A) notwithstanding subsection (c), such 

8 bond shall be treated for purposes of this title 

9 in the same manner as if such bond were issued 

10 by a State, and 

11 ‘‘(B) section 146 shall not apply. 

12 ‘‘(3) TRIBAL ECONOMIC DEVELOPMENT

13 BOND.— 

14 ‘‘(A) IN GENERAL.—For purposes of this 

15 section, the term ‘tribal economic development 

16 bond’ means any bond issued by an Indian trib17 al government— 

18 ‘‘(i) the interest on which is not ex19 empt from tax under section 103 by reason 

20 of subsection (c) (determined without re21 gard to this subsection) but would be so 

22 exempt if issued by a State or local govern23 ment, and 

24 ‘‘(ii) which is designated by the In25 dian tribal government as a tribal ecoVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00348 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 nomic development bond for purposes of 

2 this subsection. 

3 ‘‘(B) EXCEPTIONS.—The term tribal eco4 nomic development bond shall not include any 

5 bond issued as part of an issue if any portion 

6 of the proceeds of such issue are used to fi7 nance— 

8 ‘‘(i) any portion of a building in which 

9 class II or class III gaming (as defined in 

10 section 4 of the Indian Gaming Regulatory 

11 Act) is conducted or housed or any other 

12 property actually used in the conduct of 

13 such gaming, or 

14 ‘‘(ii) any facility located outside the 

15 Indian reservation (as defined in section 

16 168(j)(6)). 

17 ‘‘(C) LIMITATION ON AMOUNT OF BONDS

18 DESIGNATED.—The maximum aggregate face 

19 amount of bonds which may be designated by 

20 any Indian tribal government under subpara21 graph (A) shall not exceed the amount of na22 tional tribal economic development bond limita23 tion allocated to such government under para24 graph (1).’’. 


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1 (b) STUDY.—The Secretary of the Treasury, or the 

2 Secretary’s delegate, shall conduct a study of the effects 

3 of the amendment made by subsection (a). Not later than 

4 1 year after the date of the enactment of this Act, the 

5 Secretary of the Treasury, or the Secretary’s delegate, 

6 shall report to Congress on the results of the studies con7 ducted under this paragraph, including the Secretary’s 

8 recommendations regarding such amendment. 

9 (c) EFFECTIVE DATE.—The amendment made by 

10 subsection (a) shall apply to obligations issued after the 

11 date of the enactment of this Act. 

12 PART 5—REPEAL OF WITHHOLDING TAX ON 

13 GOVERNMENT CONTRACTORS 

14 SEC. 1541. REPEAL OF WITHHOLDING TAX ON GOVERN15 MENT CONTRACTORS. 

16 Section 3402 is amended by striking subsection (t). 

17 Subtitle G—Energy Incentives 

18 PART 1—RENEWABLE ENERGY INCENTIVES 

19 SEC. 1601. EXTENSION OF CREDIT FOR ELECTRICITY PRO20 DUCED FROM CERTAIN RENEWABLE RE21 SOURCES. 

22 (a) IN GENERAL.—Subsection (d) of section 45 is 

23 amended— 

24 (1) by striking ‘‘2010’’ in paragraph (1) and in25 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 

7 section 45(d) is amended by striking ‘‘and before’’ and 

8 all that follows and inserting ‘‘ and before October 3, 

9 2008.’’. 

10 (c) EFFECTIVE DATE.— 

11 (1) IN GENERAL.—The amendments made by 

12 subsection (a) shall apply to property placed in serv13 ice after the date of the enactment of this Act. 

14 (2) TECHNICAL AMENDMENT.—The amendment 

15 made by subsection (b) shall take effect as if in16 cluded in section 102 of the Energy Improvement 

17 and Extension Act of 2008. 

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

19 PRODUCTION CREDIT. 

20 (a) IN GENERAL.—Subsection (a) of section 48 is 

21 amended by adding at the end the following new para22 graph: 

23 ‘‘(5) ELECTION TO TREAT QUALIFIED FACILI24 TIES AS ENERGY PROPERTY.— 


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1 ‘‘(A) IN GENERAL.—In the case of any 

2 qualified investment credit facility placed in 

3 service in 2009 or 2010— 

4 ‘‘(i) such facility shall be treated as 

5 energy property for purposes of this sec6 tion, and 

7 ‘‘(ii) the energy percentage with re8 spect to such property shall be 30 percent. 

9 ‘‘(B) DENIAL OF PRODUCTION CREDIT.— 

10 No credit shall be allowed under section 45 for 

11 any taxable year with respect to any qualified 

12 investment credit facility. 

13 ‘‘(C) QUALIFIED INVESTMENT CREDIT FA14 CILITY.—For purposes of this paragraph, the 

15 term ‘qualified investment credit facility’ means 

16 any facility described in paragraph (1), (2), (3), 

17 (4), (6), (7), (9), or (11) of section 45(d) if no 

18 credit has been allowed under section 45 with 

19 respect to such facility and the taxpayer makes 

20 an irrevocable election to have this paragraph 

21 apply to such facility.’’. 

22 (b) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to facilities placed in service after 

24 December 31, 2008. 


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1 SEC. 1603. REPEAL OF CERTAIN LIMITATIONS ON CREDIT 

2 FOR RENEWABLE ENERGY PROPERTY. 

3 (a) REPEAL OF LIMITATION ON CREDIT FOR QUALI4 FIED SMALL WIND ENERGY PROPERTY.—Paragraph (4) 

5 of section 48(c) is amended by striking subparagraph (B) 

6 and by redesignating subparagraphs (C) and (D) as sub7 paragraphs (B) and (C). 

8 (b) REPEAL OF LIMITATION ON PROPERTY FI9 NANCED BY SUBSIDIZED ENERGY FINANCING.— 

10 (1) IN GENERAL.—Subsection (a) of section 48 

11 is amended by striking paragraph (4). 

12 (2) CONFORMING AMENDMENTS.— 

13 (A) Section 25C(e)(1) is amended by strik14 ing ‘‘(8), and (9)’’ and inserting ‘‘and (8)’’. 

15 (B) Section 25D(e) is amended by striking 

16 paragraph (9). 

17 (c) EFFECTIVE DATE.— 

18 (1) IN GENERAL.—Except as provided in para19 graph (2),the amendment made by this section shall 

20 apply to periods after December 31, 2008, under 

21 rules similar to the rules of section 48(m) of the In22 ternal Revenue Code of 1986 (as in effect on the day 

23 before the date of the enactment of the Revenue 

24 Reconciliation Act of 1990). 


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1 (2) CONFORMING AMENDMENTS.—The amend2 ments made by subsection (b)(2) shall apply to tax3 able years beginning after December 31, 2008. 

4 SEC. 1604. COORDINATION WITH RENEWABLE ENERGY 

5 GRANTS. 

6 Section 48 is amended by adding at the end the fol7 lowing new subsection: 

8 ‘‘(d) COORDINATION WITH DEPARTMENT OF EN9 ERGY GRANTS.—In the case of any property with respect 

10 to which the Secretary of Energy makes a grant under 

11 section 1721 of the American Recovery and Reinvestment 

12 Tax Act of 2009— 

13 ‘‘(1) DENIAL OF PRODUCTION AND INVEST14 MENT CREDITS.—No credit shall be determined 

15 under this section or section 45 with respect to such 

16 property for the taxable year in which such grant is 

17 made or any subsequent taxable year. 

18 ‘‘(2) RECAPTURE OF CREDITS FOR PROGRESS

19 EXPENDITURES MADE BEFORE GRANT.—If a credit 

20 was determined under this section with respect to 

21 such property for any taxable year ending before 

22 such grant is made— 

23 ‘‘(A) the tax imposed under subtitle A on 

24 the taxpayer for the taxable year in which such 


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1 grant is made shall be increased by so much of 

2 such credit as was allowed under section 38, 

3 ‘‘(B) the general business carryforwards 

4 under section 39 shall be adjusted so as to re5 capture the portion of such credit which was 

6 not so allowed, and 

7 ‘‘(C) the amount of such grant shall be de8 termined without regard to any reduction in the 

9 basis of such property by reason of such credit. 

10 ‘‘(3) TREATMENT OF GRANTS.—Any such grant 

11 shall— 

12 ‘‘(A) not be includible in the gross income 

13 of the taxpayer, but 

14 ‘‘(B) shall be taken into account in deter15 mining the basis of the property to which such 

16 grant relates, except that the basis of such 

17 property shall be reduced under section 50(c) in 

18 the same manner as a credit allowed under sub19 section (a).’’. 


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1 PART 2—INCREASED ALLOCATIONS OF NEW 

2 CLEAN RENEWABLE ENERGY BONDS AND 

3 QUALIFIED ENERGY CONSERVATION BONDS 

4 SEC. 1611. INCREASED LIMITATION ON ISSUANCE OF NEW 

5 CLEAN RENEWABLE ENERGY BONDS. 

6 Subsection (c) of section 54C is amended by adding 

7 at the end the following new paragraph: 

8 ‘‘(4) ADDITIONAL LIMITATION.—The national 

9 new clean renewable energy bond limitation shall be 

10 increased by $1,600,000,000. Such increase shall be 

11 allocated by the Secretary consistent with the rules 

12 of paragraphs (2) and (3).’’. 

13 SEC. 1612. INCREASED LIMITATION AND EXPANSION OF 

14 QUALIFIED ENERGY CONSERVATION BONDS. 

15 (a) INCREASED LIMITATION.—Subsection (e) of sec16 tion 54D is amended by adding at the end the following 

17 new paragraph: 

18 ‘‘(4) ADDITIONAL LIMITATION.—The national 

19 qualified energy conservation bond limitation shall 

20 be increased by $2,400,000,000. Such increase shall 

21 be allocated by the Secretary consistent with the 

22 rules of paragraphs (1), (2), and (3).’’. 

23 (b) LOANS AND GRANTS TO IMPLEMENT GREEN

24 COMMUNITY PROGRAMS.— 

25 (1) IN GENERAL.—Subparagraph (A) of section 

26 54D(f)(1) is amended by inserting ‘‘(or loans or 


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1 grants for capital expenditures to implement any 

2 green community program)’’ after ‘‘Capital expendi3 tures’’. 

4 (2) BONDS TO IMPLEMENT GREEN COMMUNITY

5 PROGRAMS NOT TREATED AS PRIVATE ACTIVITY

6 BONDS FOR PURPOSES OF LIMITATIONS ON QUALI7 FIED ENERGY CONSERVATION BONDS .—Subsection 

8 (e) of section 54D is amended by adding at the end 

9 the following new paragraph: 

10 ‘‘(4) BONDS TO IMPLEMENT GREEN COMMU11 NITY PROGRAMS NOT TREATED AS PRIVATE ACTIV12 ITY BONDS.—For purposes of paragraph (3) and 

13 subsection (f)(2), a bond shall not be treated as a 

14 private activity bond solely because proceeds of the 

15 issue of which such bond is a part are to be used 

16 for loans or grants for capital expenditures to imple17 ment any green community program.’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to obligations issued after the date 

20 of the enactment of this Act. 


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1 PART 3—ENERGY CONSERVATION INCENTIVES 

2 SEC. 1621. EXTENSION AND MODIFICATION OF CREDIT FOR 

3 NONBUSINESS ENERGY PROPERTY. 

4 (a) IN GENERAL.—Section 25C is amended by strik5 ing subsections (a) and (b) and inserting the following new 

6 subsections: 

7 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in8 dividual, 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 

18 credits allowed under this section for taxable years begin19 ning in 2009 and 2010 with respect to any taxpayer shall 

20 not exceed $1,500.’’. 

21 (b) EXTENSION.—Section 25C(g)(2) is amended by 

22 striking ‘‘December 31, 2009’’ and inserting ‘‘December 

23 31, 2010’’. 

24 (c) EFFECTIVE DATE.—The amendments made by 

25 this section shall apply to taxable years beginning after 

26 December 31, 2008. 


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1 SEC. 1622. MODIFICATION OF CREDIT FOR RESIDENTIAL 

2 ENERGY EFFICIENT PROPERTY. 

3 (a) REMOVAL OF CREDIT LIMITATION FOR PROP4 ERTY PLACED IN SERVICE.— 

5 (1) IN GENERAL.—Paragraph (1) of section 

6 25D(b) is amended to read as follows: 

7 ‘‘(1) MAXIMUM CREDIT FOR FUEL CELLS.—In 

8 the case of any qualified fuel cell property expendi9 ture, the credit allowed under subsection (a) (deter10 mined without regard to subsection (c)) for any tax11 able year shall not exceed $500 with respect to each 

12 half kilowatt of capacity of the qualified fuel cell 

13 property (as defined in section 48(c)(1)) to which 

14 such expenditure relates.’’. 

15 (2) CONFORMING AMENDMENT.—Paragraph (4) 

16 of section 25D(e) is amended— 

17 (A) by striking all that precedes subpara18 graph (B) and inserting the following: 

19 ‘‘(4) FUEL CELL EXPENDITURE LIMITATIONS

20 IN CASE OF JOINT OCCUPANCY.—In the case of any 

21 dwelling unit with respect to which qualified fuel cell 

22 property expenditures are made and which is jointly 

23 occupied and used during any calendar year as a 

24 residence by two or more individuals the following 

25 rules shall apply: 


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1 ‘‘(A) MAXIMUM EXPENDITURES FOR FUEL

2 CELLS.—The maximum amount of such ex3 penditures which may be taken into account 

4 under subsection (a) by all such individuals 

5 with respect to such dwelling unit during such 

6 calendar year shall be $1,667 in the case of 

7 each half kilowatt of capacity of qualified fuel 

8 cell property (as defined in section 48(c)(1)) 

9 with respect to which such expenditures re10 late.’’, and 

11 (B) by striking subparagraph (C). 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 December 31, 2008. 

15 SEC. 1623. TEMPORARY INCREASE IN CREDIT FOR ALTER16 NATIVE FUEL VEHICLE REFUELING PROP17 ERTY. 

18 (a) IN GENERAL.—Section 30C(e) is amended by 

19 adding at the end the following new paragraph: 

20 ‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN

21 SERVICE DURING 2009 AND 2010.—In the case of 

22 property placed in service in taxable years beginning 

23 after December 31, 2008, and before January 1, 

24 2011— 


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1 ‘‘(A) in the case of any such property 

2 which does not relate to hydrogen— 

3 ‘‘(i) subsection (a) shall be applied by 

4 substituting ‘50 percent’ for ‘30 percent’, 

5 ‘‘(ii) subsection (b)(1) shall be applied 

6 by substituting ‘$50,000’ for ‘$30,000’, 

7 and 

8 ‘‘(iii) subsection (b)(2) shall be ap9 plied by substituting ‘$2,000’ for ‘$1,000’, 

10 and 

11 ‘‘(B) in the case of any such property 

12 which relates to hydrogen, subsection (b) shall 

13 be applied by substituting ‘$200,000’ for 

14 ‘$30,000’.’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 this section shall apply to taxable years beginning after 

17 December 31, 2008. 

18 PART 4—ENERGY RESEARCH INCENTIVES 

19 SEC. 1631. INCREASED RESEARCH CREDIT FOR ENERGY RE20 SEARCH. 

21 (a) IN GENERAL.—Section 41 is amended by redesig22 nating subsection (h) as subsection (i) and by inserting 

23 after subsection (g) the following new subsection: 

24 ‘‘(h) ENERGY RESEARCH CREDIT.—In the case of 

25 any taxable year beginning in 2009 or 2010— 


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1 ‘‘(1) IN GENERAL.—The credit determined 

2 under subsection (a)(1) shall be increased by 20 per3 cent of the qualified energy research expenses for 

4 the taxable year. 

5 ‘‘(2) QUALIFIED ENERGY RESEARCH EX6 PENSES.—For purposes of this subsection, the term 

7 ‘qualified energy research expenses’ means so much 

8 of the taxpayer’s qualified research expenses as are 

9 related to the fields of fuel cells and battery tech10 nology, renewable energy, energy conservation tech11 nology, efficient transmission and distribution of 

12 electricity, and carbon capture and sequestration. 

13 ‘‘(3) COORDINATION WITH OTHER RESEARCH

14 CREDITS.— 

15 ‘‘(A) INCREMENTAL CREDIT.—The amount 

16 of qualified energy research expenses taken into 

17 account under subsection (a)(1)(A) shall not ex18 ceed the base amount. 

19 ‘‘(B) ALTERNATIVE SIMPLIFIED CREDIT.— 

20 For purposes of subsection (c)(5), the amount 

21 of qualified energy research expenses taken into 

22 account for the taxable year for which the cred23 it is being determined shall not exceed— 

24 ‘‘(i) in the case of subsection 

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1 fied research expenses for the 3 taxable 

2 years preceding the taxable year for which 

3 the credit is being determined, and 

4 ‘‘(ii) in the case of subsection 

5 (c)(5)(B)(ii), zero. 

6 ‘‘(C) BASIC RESEARCH AND ENERGY RE7 SEARCH CONSORTIUM PAYMENTS.—Any amount 

8 taken into account under paragraph (1) shall 

9 not be taken into account under paragraph (2) 

10 or (3) of subsection (a).’’. 

11 (b) CONFORMING AMENDMENT.—Subparagraph (B) 

12 of section 41(i)(1)(B), as redesignated by subsection (a), 

13 is amended by inserting ‘‘(in the case of the increase in 

14 the credit determined under subsection (h), December 31, 

15 2010)’’ after ‘‘December 31, 2009’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2008. 


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1 Subtitle H—Other Provisions 

2 PART 1—APPLICATION OF CERTAIN LABOR 

3 STANDARDS TO PROJECTS FINANCED WITH 

4 CERTAIN TAX-FAVORED BONDS 

5 SEC. 1701. APPLICATION OF CERTAIN LABOR STANDARDS 

6 TO PROJECTS FINANCED WITH CERTAIN TAX7 FAVORED BONDS. 

8 Subchapter IV of chapter 31 of the title 40, United 

9 States Code, shall apply to projects financed with the pro10 ceeds of— 

11 (1) any qualified clean renewable energy bond 

12 (as defined in section 54C of the Internal Revenue 

13 Code of 1986) issued after the date of the enact14 ment of this Act, 

15 (2) any qualified energy conservation bond (as 

16 defined in section 54D of the Internal Revenue Code 

17 of 1986) issued after the date of the enactment of 

18 this Act, 

19 (3) any qualified zone academy bond (as de20 fined in section 54E of the Internal Revenue Code 

21 of 1986) issued after the date of the enactment of 

22 this Act, 

23 (4) any qualified school construction bond (as 

24 defined in section 54F of the Internal Revenue Code 

25 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 PART 2—GRANTS TO PROVIDE FINANCING FOR 

5 LOW-INCOME HOUSING 

6 SEC. 1711. GRANTS TO STATES FOR LOW-INCOME HOUSING 

7 PROJECTS IN LIEU OF LOW-INCOME HOUS8 ING CREDIT ALLOCATIONS FOR 2009. 

9 (a) IN GENERAL.—The Secretary of the Treasury 

10 shall make a grant to the housing credit agency of each 

11 State in an amount equal to such State’s low-income hous12 ing grant election amount. 

13 (b) LOW-INCOME HOUSING GRANT ELECTION

14 AMOUNT.—For purposes of this section, the term ‘‘low15 income housing grant election amount’’ means, with re16 spect to any State, such amount as the State may elect 

17 which does not exceed 85 percent of the product of— 

18 (1) the sum of— 

19 (A) 100 percent of the State housing credit 

20 ceiling for 2009 which is attributable to 

21 amounts described in clauses (i) and (iii) of sec22 tion 42(h)(3)(C) of the Internal Revenue Code 

23 of 1986, and 

24 (B) 40 percent of the State housing credit 

25 ceiling for 2009 which is attributable to 


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1 amounts described in clauses (ii) and (iv) of 

2 such section, multiplied by 

3 (2) 10. 

4 (c) SUBAWARDS FOR LOW-INCOME BUILDINGS.— 

5 (1) IN GENERAL.—A State housing credit agen6 cy receiving a grant under this section shall use such 

7 grant to make subawards to finance the construction 

8 or acquisition and rehabilitation of qualified low-in9 come buildings. A subaward under this section may 

10 be made to finance a qualified low-income building 

11 with or without an allocation under section 42 of the 

12 Internal Revenue Code of 1986, except that a State 

13 housing credit agency may make subawards to fi14 nance qualified low-income buildings without an allo15 cation only if it makes a determination that such use 

16 will increase the total funds available to the State to 

17 build and rehabilitate affordable housing. In com18 plying with such determination requirement, a State 

19 housing credit agency shall establish a process in 

20 which applicants that are allocated credits are re21 quired to demonstrate good faith efforts to obtain 

22 investment commitments for such credits before the 

23 agency makes such subawards. 

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1 TIONS.—Any such subaward with respect to any 

2 qualified low-income building shall be made in the 

3 same manner and shall be subject to the same limi4 tations (including rent, income, and use restrictions 

5 on such building) as an allocation of housing credit 

6 dollar amount allocated by such State housing credit 

7 agency under section 42 of the Internal Revenue 

8 Code of 1986, except that such subawards shall not 

9 be limited by, or otherwise affect (except as provided 

10 in subsection (h)(3)(J) of such section), the State 

11 housing credit ceiling applicable to such agency. 

12 (3) COMPLIANCE AND ASSET MANAGEMENT.— 

13 The State housing credit agency shall perform asset 

14 management functions to ensure compliance with 

15 section 42 of the Internal Revenue Code of 1986 

16 and the long-term viability of buildings funded by 

17 any subaward under this section. The State housing 

18 credit agency may collect reasonable fees from a 

19 subaward recipient to cover expenses associated with 

20 the performance of its duties under this paragraph. 

21 The State housing credit agency may retain an 

22 agent or other private contractor to satisfy the re23 quirements of this paragraph. 

24 (4) RECAPTURE.—The State housing credit 

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1 cluding a requirement providing for recapture, on 

2 any subaward under this section so as to assure that 

3 the building with respect to which such subaward is 

4 made remains a qualified low-income building during 

5 the compliance period. Any such recapture shall be 

6 payable to the Secretary of the Treasury for deposit 

7 in the general fund of the Treasury and may be en8 forced by means of liens or such other methods as 

9 the Secretary of the Treasury determines appro10 priate. 

11 (d) RETURN OF UNUSED GRANT FUNDS.—Any grant 

12 funds not used to make subawards under this section be13 fore January 1, 2011, shall be returned to the Secretary 

14 of the Treasury on such date. Any subawards returned 

15 to the State housing credit agency on or after such date 

16 shall be promptly returned to the Secretary of the Treas17 ury. Any amounts returned to the Secretary of the Treas18 ury under this subsection shall be deposited in the general 

19 fund of the Treasury. 

20 (e) DEFINITIONS.—Any term used in this section 

21 which is also used in section 42 of the Internal Revenue 

22 Code of 1986 shall have the same meaning for purposes 

23 of this section as when used in such section 42. Any ref24 erence in this section to the Secretary of the Treasury 

25 shall be treated as including the Secretary’s delegate. 


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1 (f) APPROPRIATIONS.—There is hereby appropriated 

2 to the Secretary of the Treasury such sums as may be 

3 necessary to carry out this section. 

4 PART 3—GRANTS FOR SPECIFIED ENERGY 

5 PROPERTY IN LIEU OF TAX CREDITS 

6 SEC. 1721. GRANTS FOR SPECIFIED ENERGY PROPERTY IN 

7 LIEU OF TAX CREDITS. 

8 (a) IN GENERAL.—Upon application, the Secretary 

9 of Energy shall, within 60 days of the application and sub10 ject to the requirements of this section, provide a grant 

11 to each person who places in service specified energy prop12 erty during 2009 or 2010 to reimburse such person for 

13 a portion of the expense of such facility as provided in 

14 subsection (b). 

15 (b) GRANT AMOUNT.— 

16 (1) IN GENERAL.—The amount of the grant 

17 under subsection (a) with respect to any specified 

18 energy property shall be the applicable percentage of 

19 the basis of such facility. 

20 (2) APPLICABLE PERCENTAGE.—For purposes 

21 of paragraph (1), the term ‘‘applicable percentage’’ 

22 means— 

23 (A) 30 percent in the case of any property 

24 described in paragraphs (1) through (4) of sub25 section (c), and 


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1 (B) 10 percent in the case of any other 

2 property. 

3 (3) DOLLAR LIMITATIONS.—In the case of 

4 property described in paragraph (2), (6), or (7) of 

5 subsection (c), the amount of any grant under this 

6 section with respect to such property shall not ex7 ceed the limitation described in section 48(c)(1)(B), 

8 48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue 

9 Code of 1986, respectively, with respect to such 

10 property. 

11 (c) SPECIFIED ENERGY PROPERTY.—For purposes 

12 of this section, the term ‘‘specified energy property’’ 

13 means any of the following: 

14 (1) QUALIFIED FACILITIES.—Any facility de15 scribed in paragraph (1), (2), (3), (4), (6), (7), (9), 

16 or (11) of section 45(d) of the Internal Revenue 

17 Code of 1986. 

18 (2) QUALIFIED FUEL CELL PROPERTY.—Any 

19 qualified fuel cell property (as defined in section 

20 48(c)(1) of such Code). 

21 (3) SOLAR PROPERTY.—Any property described 

22 in clause (i) or (ii) of section 48(a)(3)(A) of such 

23 Code. 


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1 (4) QUALIFIED SMALL WIND ENERGY PROP2 ERTY.—Any qualified small wind energy property 

3 (as defined in section 48(c)(4) of such Code). 

4 (5) GEOTHERMAL PROPERTY.—Any property 

5 described in clause (iii) of section 48(a)(3)(A) of 

6 such Code. 

7 (6) QUALIFIED MICROTURBINE PROPERTY.— 

8 Any qualified microturbine property (as defined in 

9 section 48(c)(2) of such Code). 

10 (7) COMBINED HEAT AND POWER SYSTEM

11 PROPERTY.—Any combined heat and power system 

12 property (as defined in section 48(c)(3) of such 

13 Code). 

14 (8) GEOTHERMAL HEATPUMP PROPERTY.—Any 

15 property described in clause (vii) of section 

16 48(a)(3)(A) of such Code. 

17 (d) APPLICATION OF CERTAIN RULES.—In making 

18 grants under this section, the Secretary of Energy shall 

19 apply rules similar to the rules of section 50 of the Inter20 nal Revenue Code of 1986. In applying such rules, if the 

21 facility is disposed of, or otherwise ceases to be a qualified 

22 renewable energy facility, the Secretary of Energy shall 

23 provide for the recapture of the appropriate percentage of 

24 the grant amount in such manner as the Secretary of En25 ergy determines appropriate. 


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1 (e) EXCEPTION FOR CERTAIN NON-TAXPAYERS.— 

2 The Secretary of Energy shall not make any grant under 

3 this section to any Federal, State, or local government (or 

4 any political subdivision, agency, or instrumentality there5 of) or any organization described in section 501(c) of the 

6 Internal Revenue Code of 1986 and exempt from tax 

7 under section 501(a) of such Code. 

8 (f) DEFINITIONS.—Terms used in this section which 

9 are also used in section 45 or 48 of the Internal Revenue 

10 Code of 1986 shall have the same meaning for purposes 

11 of this section as when used in such section 45 or 48. 

12 Any reference in this section to the Secretary of the Treas13 ury shall be treated as including the Secretary’s delegate. 

14 (g) COORDINATION BETWEEN DEPARTMENTS OF

15 TREASURY AND ENERGY.—The Secretary of the Treasury 

16 shall provide the Secretary of Energy with such technical 

17 assistance as the Secretary of Energy may require in car18 rying out this section. The Secretary of Energy shall pro19 vide the Secretary of the Treasury with such information 

20 as the Secretary of the Treasury may require in carrying 

21 out the amendment made by section 1604. 

22 (h) APPROPRIATIONS.—There is hereby appropriated 

23 to the Secretary of Energy such sums as may be necessary 

24 to carry out this section. 


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1 (i) TERMINATION.—The Secretary of Energy shall 

2 not make any grant to any person under this section un3 less the application of such person for such grant is re4 ceived before October 1, 2011. 

5 PART 4—STUDY OF ECONOMIC, EMPLOYMENT, 

6 AND RELATED EFFECTS OF THIS ACT 

7 SEC. 1731. STUDY OF ECONOMIC, EMPLOYMENT, AND RE8 LATED EFFECTS OF THIS ACT. 

9 On February 1, 2010, and every 3 months thereafter 

10 in calendar year 2010, the Comptroller General of the 

11 United States shall submit to the Committee on Ways and 

12 Means a written report on the most recent national (and, 

13 where available, State-by-State) information on— 

14 (1) the economic effects of this Act; 

15 (2) the employment effects of this Act, includ16 ing— 

17 (A) a comparison of the number of jobs 

18 preserved and the number of jobs created as a 

19 result of this Act; and 

20 (B) a comparison of the numbers of jobs 

21 preserved and the number of jobs created in 

22 each of the public and private sectors; 

23 (3) the share of tax and non-tax expenditures 

24 provided under this Act that were spent or saved, by 

25 group and income class; 


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1 (4) how the funds provided to States under this 

2 Act have been spent, including a breakdown of— 

3 (A) funds used for services provided to citi4 zens; and 

5 (B) wages and other compensation for 

6 public employees; and 

7 (5) a description of any funds made available 

8 under this Act that remain unspent, and the reasons 

9 why. 

10 TITLE II—ASSISTANCE FOR UN11 EMPLOYED WORKERS AND 

12 STRUGGLING FAMILIES 

13 SEC. 2000. SHORT TITLE. 

14 This title may be cited as the ‘‘Assistance for Unem15 ployed Workers and Struggling Families Act’’. 

16 Subtitle A—Unemployment 

17 Insurance 

18 SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT 

19 COMPENSATION PROGRAM. 

20 (a) IN GENERAL.—Section 4007 of the Supplemental 

21 Appropriations Act, 2008 (Public Law 110–252; 26 

22 U.S.C. 3304 note), as amended by section 4 of the Unem23 ployment Compensation Extension Act of 2008 (Public 

24 Law 110–449; 122 Stat. 5015), is amended— 


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1 (1) by striking ‘‘March 31, 2009’’ each place it 

2 appears and inserting ‘‘December 31, 2009’’; 

3 (2) in the heading for subsection (b)(2), by 

4 striking ‘‘MARCH 31, 2009’’ and inserting ‘‘DECEM5 BER 31, 2009’’; and 

6 (3) in subsection (b)(3), by striking ‘‘August 

7 27, 2009’’ and inserting ‘‘May 31, 2010’’. 

8 (b) FINANCING PROVISIONS.—Section 4004 of such 

9 Act is amended by adding at the end the following: 

10 ‘‘(e) TRANSFER OF FUNDS.—Notwithstanding any 

11 other provision of law, the Secretary of the Treasury shall 

12 transfer from the general fund of the Treasury (from 

13 funds not otherwise appropriated)— 

14 ‘‘(1) to the extended unemployment compensa15 tion account (as established by section 905 of the 

16 Social Security Act) such sums as the Secretary of 

17 Labor estimates to be necessary to make payments 

18 to States under this title by reason of the amend19 ments made by section 2001(a) of the Assistance for 

20 Unemployed Workers and Struggling Families Act; 

21 and 

22 ‘‘(2) to the employment security administration 

23 account (as established by section 901 of the Social 

24 Security Act) such sums as the Secretary of Labor 

25 estimates to be necessary for purposes of assisting 


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1 States in meeting administrative costs by reason of 

2 the amendments referred to in paragraph (1). 

3 There are appropriated from the general fund of the 

4 Treasury, without fiscal year limitation, the sums referred 

5 to in the preceding sentence and such sums shall not be 

6 required to be repaid.’’. 

7 SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION 

8 BENEFITS. 

9 (a) FEDERAL-STATE AGREEMENTS.—Any State 

10 which desires to do so may enter into and participate in 

11 an agreement under this section with the Secretary of 

12 Labor (hereinafter in this section referred to as the ‘‘Sec13 retary’’). Any State which is a party to an agreement 

14 under this section may, upon providing 30 days’ written 

15 notice to the Secretary, terminate such agreement. 

16 (b) PROVISIONS OF AGREEMENT.— 

17 (1) ADDITIONAL COMPENSATION.—Any agree18 ment under this section shall provide that the State 

19 agency of the State will make payments of regular 

20 compensation to individuals in amounts and to the 

21 extent that they would be determined if the State 

22 law of the State were applied, with respect to any 

23 week for which the individual is (disregarding this 

24 section) otherwise entitled under the State law to re25 ceive regular compensation, as if such State law had 


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1 been modified in a manner such that the amount of 

2 regular compensation (including dependents’ allow3 ances) payable for any week shall be equal to the 

4 amount determined under the State law (before the 

5 application of this paragraph) plus an additional 

6 $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 pay15 ments which are made separately from, but on 

16 the same weekly basis as, any regular com17 pensation otherwise payable. 

18 (c) NONREDUCTION RULE.—An agreement under 

19 this section shall not apply (or shall cease to apply) with 

20 respect to a State upon a determination by the Secretary 

21 that the method governing the computation of regular 

22 compensation under the State law of that State has been 

23 modified in a manner such that— 

24 (1) the average weekly benefit amount of reg25 ular compensation which will be payable during the 


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1 period of the agreement (determined disregarding 

2 any additional amounts attributable to the modifica3 tion described in subsection (b)(1)) will be less than 

4 (2) the average weekly benefit amount of reg5 ular compensation which would otherwise have been 

6 payable during such period under the State law, as 

7 in effect on December 31, 2008. 

8 (d) PAYMENTS TO STATES.— 

9 (1) IN GENERAL.— 

10 (A) FULL REIMBURSEMENT.—There shall 

11 be paid to each State which has entered into an 

12 agreement under this section an amount equal 

13 to 100 percent of— 

14 (i) the total amount of additional 

15 compensation (as described in subsection 

16 (b)(1)) paid to individuals by the State 

17 pursuant 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 

24 an agreement under this section shall be pay25 able, either in advance or by way of reimburseVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00378 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 ment (as determined by the Secretary), in such 

2 amounts as the Secretary estimates the State 

3 will be entitled to receive under this section for 

4 each calendar month, reduced or increased, as 

5 the case may be, by any amount by which the 

6 Secretary finds that his estimates for any prior 

7 calendar month were greater or less than the 

8 amounts which should have been paid to the 

9 State. Such estimates may be made on the 

10 basis of such statistical, sampling, or other 

11 method as may be agreed upon by the Secretary 

12 and the State agency of the State involved. 

13 (2) CERTIFICATIONS.—The Secretary shall 

14 from time to time certify to the Secretary of the 

15 Treasury for payment to each State the sums pay16 able to such 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 RE5 MAINING ENTITLED TO REGULAR COMPENSATION AS

6 OF JANUARY 1, 2010.—In the case of any individual 

7 who, as of the date specified in paragraph (1)(B), 

8 has not yet exhausted all rights to regular com9 pensation under the State law of a State with re10 spect to a benefit year that began before such date, 

11 additional compensation (as described in subsection 

12 (b)(1)) shall continue to be payable to such indi13 vidual for any week beginning on or after such date 

14 for which the individual is otherwise eligible for reg15 ular compensation 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, 

22 2008 (Public Law 110–252; 122 Stat. 2356) shall apply 

23 with respect to additional compensation (as described in 

24 subsection (b)(1)) to the same extent and in the same 


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1 manner as in the case of emergency unemployment com2 pensation. 

3 (g) APPLICATION TO OTHER UNEMPLOYMENT BENE4 FITS.— 

5 (1) IN GENERAL.—Each agreement under this 

6 section shall include provisions to provide that the 

7 purposes of the preceding provisions of this section 

8 shall be applied with respect to unemployment bene9 fits described in subsection (h)(3) to the same extent 

10 and in the same manner as if those benefits were 

11 regular compensation. 

12 (2) ELIGIBILITY AND TERMINATION RULES.— 

13 Additional compensation (as described in subsection 

14 (b)(1))— 

15 (A) shall not be payable, pursuant to this 

16 subsection, with respect to any unemployment 

17 benefits described in subsection (h)(3) for any 

18 week beginning on or after the date specified in 

19 subsection (e)(1)(B), except in the case of an 

20 individual who was eligible to receive additional 

21 compensation (as so described) in connection 

22 with any regular compensation or any unem23 ployment benefits described in subsection (h)(3) 

24 for any period of unemployment ending before 

25 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.—The monthly 

6 equivalent of any additional compensation paid under this 

7 section shall be disregarded in considering the amount of 

8 income of an individual for any purposes under title XIX 

9 and title XXI of the Social Security Act. 

10 (i) DEFINITIONS.—For purposes of this section— 

11 (1) the terms ‘‘compensation’’, ‘‘regular com12 pensation’’, ‘‘benefit year’’, ‘‘State’’, ‘‘State agency’’, 

13 ‘‘State law’’, and ‘‘week’’ have the respective mean14 ings given such terms under section 205 of the Fed15 eral-State Extended Unemployment Compensation 

16 Act of 1970 (26 U.S.C. 3304 note); 

17 (2) the term ‘‘emergency unemployment com18 pensation’’ means emergency unemployment com19 pensation under title IV of the Supplemental Appro20 priations Act, 2008 (Public Law 110–252; 122 Stat. 

21 2353); and 

22 (3) any reference to unemployment benefits de23 scribed in this paragraph shall be considered to refer 

24 to— 


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1 (A) extended compensation (as defined by 

2 section 205 of the Federal-State Extended Un3 employment Compensation Act of 1970); and 

4 (B) unemployment compensation (as de5 fined by section 85(b) of the Internal Revenue 

6 Code of 1986) provided under any program ad7 ministered by a State under an agreement with 

8 the Secretary. 

9 SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT 

10 COMPENSATION MODERNIZATION. 

11 (a) IN GENERAL.—Section 903 of the Social Security 

12 Act (42 U.S.C. 1103) is amended by adding at the end 

13 the following: 

14 ‘‘Special Transfers in Fiscal Years 2009, 2010, and 2011 

15 for Modernization 

16 ‘‘(f)(1)(A) In addition to any other amounts, the Sec17 retary of Labor shall provide for the making of unemploy18 ment compensation modernization incentive payments 

19 (hereinafter ‘incentive payments’) to the accounts of the 

20 States in the Unemployment Trust Fund, by transfer from 

21 amounts reserved for that purpose in the Federal unem22 ployment account, in accordance with succeeding provi23 sions of this subsection. 

24 ‘‘(B) The maximum incentive payment allowable 

25 under this subsection with respect to any State shall, as 


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1 determined by the Secretary of Labor, be equal to the 

2 amount obtained by multiplying $7,000,000,000 by the 

3 same ratio as would apply under subsection (a)(2)(B) for 

4 purposes of determining such State’s share of any excess 

5 amount (as described in subsection (a)(1)) that would 

6 have been subject to transfer to State accounts, as of Oc7 tober 1, 2008, under the provisions of subsection (a). 

8 ‘‘(C) Of the maximum incentive payment determined 

9 under subparagraph (B) with respect to a State— 

10 ‘‘(i) one-third shall be transferred to the ac11 count of such State upon a certification under para12 graph (4)(B) that the State law of such State meets 

13 the requirements of paragraph (2); and 

14 ‘‘(ii) the remainder shall be transferred to the 

15 account of such State upon a certification under 

16 paragraph (4)(B) that the State law of such State 

17 meets the requirements of paragraph (3). 

18 ‘‘(2) The State law of a State meets the requirements 

19 of this paragraph if such State law— 

20 ‘‘(A) uses a base period that includes the most 

21 recently completed calendar quarter before the start 

22 of the benefit year for purposes of determining eligi23 bility for unemployment compensation; or 

24 ‘‘(B) provides that, in the case of an individual 

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1 ment compensation under the State law because of 

2 the use of a base period that does not include the 

3 most recently completed calendar quarter before the 

4 start of the benefit year, eligibility shall be deter5 mined using a base period that includes such cal6 endar quarter. 

7 ‘‘(3) The State law of a State meets the requirements 

8 of this paragraph if such State law includes provisions to 

9 carry out at least 2 of the following subparagraphs: 

10 ‘‘(A) An individual shall not be denied regular 

11 unemployment compensation under any State law 

12 provisions relating to availability for work, active 

13 search for work, or refusal to accept work, solely be14 cause such individual is seeking only part-time work 

15 (as defined by the Secretary of Labor), except that 

16 the State law provisions carrying out this subpara17 graph may exclude an individual if a majority of the 

18 weeks of work in such individual’s base period do 

19 not include part-time work (as so defined). 

20 ‘‘(B) An individual shall not be disqualified 

21 from regular unemployment compensation for sepa22 rating from employment if that separation is for any 

23 compelling family reason. For purposes of this sub24 paragraph, the term ‘compelling family reason’ 

25 means the following: 


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1 ‘‘(i) Domestic violence, verified by such 

2 reasonable and confidential documentation as 

3 the State law may require, which causes the in4 dividual reasonably to believe that such individ5 ual’s continued employment would jeopardize 

6 the safety of the individual or of any member 

7 of the individual’s immediate family (as defined 

8 by the Secretary of Labor). 

9 ‘‘(ii) The illness or disability of a member 

10 of the individual’s immediate family (as those 

11 terms are defined by the Secretary of Labor). 

12 ‘‘(iii) The need for the individual to accom13 pany such individual’s spouse— 

14 ‘‘(I) to a place from which it is im15 practical for such individual to commute; 

16 and 

17 ‘‘(II) due to a change in location of 

18 the spouse’s employment. 

19 ‘‘(C) Weekly unemployment compensation is 

20 payable under this subparagraph to any individual 

21 who is unemployed (as determined under the State 

22 unemployment compensation law), has exhausted all 

23 rights to regular unemployment compensation under 

24 the State law, and is enrolled and making satisfac25 tory progress in a State-approved training program 


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1 or in a job training program authorized under the 

2 Workforce Investment Act of 1998. Such programs 

3 shall prepare individuals who have been separated 

4 from a declining occupation, or who have been invol5 untarily and indefinitely separated from employment 

6 as a result of a permanent reduction of operations 

7 at the individual’s place of employment, for entry 

8 into a high-demand occupation. The amount of un9 employment compensation payable under this sub10 paragraph to an individual for a week of unemploy11 ment shall be equal to the individual’s average week12 ly benefit amount (including dependents’ allowances) 

13 for the most recent benefit year, and the total 

14 amount of unemployment compensation payable 

15 under this subparagraph to any individual shall be 

16 equal to at least 26 times the individual’s average 

17 weekly benefit amount (including dependents’ allow18 ances) for the most recent benefit year. 

19 ‘‘(D) Dependents’ allowances are provided, in 

20 the case of any individual who is entitled to receive 

21 regular unemployment compensation and who has 

22 any dependents (as defined by State law), in an 

23 amount equal to at least $15 per dependent per 

24 week, subject to any aggregate limitation on such al25 lowances which the State law may establish (but 


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1 which aggregate limitation on the total allowance for 

2 dependents paid to an individual may not be less 

3 than $50 for each week of unemployment or 50 per4 cent of the individual’s weekly benefit amount for 

5 the benefit year, whichever is less). 

6 ‘‘(4)(A) Any State seeking an incentive payment 

7 under this subsection shall submit an application therefor 

8 at such time, in such manner, and complete with such in9 formation as the Secretary of Labor may within 60 days 

10 after the date of the enactment of this subsection prescribe 

11 (whether by regulation or otherwise), including informa12 tion relating to compliance with the requirements of para13 graph (2) or (3), as well as how the State intends to use 

14 the incentive payment to improve or strengthen the State’s 

15 unemployment compensation program. The Secretary of 

16 Labor shall, within 30 days after receiving a complete ap17 plication, notify the State agency of the State of the Sec18 retary’s findings with respect to the requirements of para19 graph (2) or (3) (or both). 

20 ‘‘(B)(i) If the Secretary of Labor finds that the State 

21 law provisions (disregarding any State law provisions 

22 which are not then currently in effect as permanent law 

23 or which are subject to discontinuation) meet the require24 ments of paragraph (2) or (3), as the case may be, the 

25 Secretary of Labor shall thereupon make a certification 


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1 to that effect to the Secretary of the Treasury, together 

2 with a certification as to the amount of the incentive pay3 ment to be transferred to the State account pursuant to 

4 that finding. The Secretary of the Treasury shall make 

5 the appropriate transfer within 7 days after receiving such 

6 certification. 

7 ‘‘(ii) For purposes of clause (i), State law provisions 

8 which are to take effect within 12 months after the date 

9 of their certification under this subparagraph shall be con10 sidered to be in effect as of the date of such certification. 

11 ‘‘(C)(i) No certification of compliance with the re12 quirements of paragraph (2) or (3) may be made with re13 spect to any State whose State law is not otherwise eligible 

14 for certification under section 303 or approvable under 

15 section 3304 of the Federal Unemployment Tax Act. 

16 ‘‘(ii) No certification of compliance with the require17 ments of paragraph (3) may be made with respect to any 

18 State whose State law is not in compliance with the re19 quirements of paragraph (2). 

20 ‘‘(iii) No application under subparagraph (A) may be 

21 considered if submitted before the date of the enactment 

22 of this subsection or after the latest date necessary (as 

23 specified by the Secretary of Labor) to ensure that all in24 centive payments under this subsection are made before 

25 October 1, 2011. 


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1 ‘‘(5)(A) Except as provided in subparagraph (B), any 

2 amount transferred to the account of a State under this 

3 subsection may be used by such State only in the payment 

4 of cash benefits to individuals with respect to their unem5 ployment (including for dependents’ allowances and for 

6 unemployment compensation under paragraph (3)(C)), ex7 clusive of expenses of administration. 

8 ‘‘(B) A State may, subject to the same conditions as 

9 set forth in subsection (c)(2) (excluding subparagraph (B) 

10 thereof, and deeming the reference to ‘subsections (a) and 

11 (b)’ in subparagraph (D) thereof to include this sub12 section), use any amount transferred to the account of 

13 such State under this subsection for the administration 

14 of its unemployment compensation law and public employ15 ment offices. 

16 ‘‘(6) Out of any money in the Federal unemployment 

17 account not otherwise appropriated, the Secretary of the 

18 Treasury shall reserve $7,000,000,000 for incentive pay19 ments under this subsection. Any amount so reserved shall 

20 not be taken into account for purposes of any determina21 tion under section 902, 910, or 1203 of the amount in 

22 the Federal unemployment account as of any given time. 

23 Any amount so reserved for which the Secretary of the 

24 Treasury has not received a certification under paragraph 

25 (4)(B) by the deadline described in paragraph (4)(C)(iii) 


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1 shall, upon the close of fiscal year 2011, become unre2 stricted as to use as part of the Federal unemployment 

3 account. 

4 ‘‘(7) For purposes of this subsection, the terms ‘ben5 efit year’, ‘base period’, and ‘week’ have the respective 

6 meanings given such terms under section 205 of the Fed7 eral-State Extended Unemployment Compensation Act of 

8 1970 (26 U.S.C. 3304 note). 

9 ‘‘Special Transfer in Fiscal Year 2009 for Administration 

10 ‘‘(g)(1) In addition to any other amounts, the Sec11 retary of the Treasury shall transfer from the employment 

12 security administration account to the account of each 

13 State in the Unemployment Trust Fund, within 30 days 

14 after the date of the enactment of this subsection, the 

15 amount determined with respect to such State under para16 graph (2). 

17 ‘‘(2) The amount to be transferred under this sub18 section to a State account shall (as determined by the Sec19 retary of Labor and certified by such Secretary to the Sec20 retary of the Treasury) be equal to the amount obtained 

21 by multiplying $500,000,000 by the same ratio as deter22 mined under subsection (f)(1)(B) with respect to such 

23 State. 

24 ‘‘(3) Any amount transferred to the account of a 

25 State as a result of the enactment of this subsection may 


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1 be used by the State agency of such State only in the pay2 ment of expenses incurred by it for— 

3 ‘‘(A) the administration of the provisions of its 

4 State law carrying out the purposes of subsection 

5 (f)(2) or any subparagraph of subsection (f)(3); 

6 ‘‘(B) improved outreach to individuals who 

7 might be eligible for regular unemployment com8 pensation by virtue of any provisions of the State 

9 law which are described in subparagraph (A); 

10 ‘‘(C) the improvement of unemployment benefit 

11 and unemployment tax operations, including re12 sponding to increased demand for unemployment 

13 compensation; and 

14 ‘‘(D) staff-assisted reemployment services for 

15 unemployment compensation claimants.’’. 

16 (b) REGULATIONS.—The Secretary of Labor may 

17 prescribe any regulations, operating instructions, or other 

18 guidance necessary to carry out the amendment made by 

19 subsection (a). 

20 Subtitle B—Assistance for 

21 Vulnerable Individuals 

22 SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM. 

23 (a) IN GENERAL.—Section 403 of the Social Security 

24 Act (42 U.S.C. 603) is amended by adding at the end the 

25 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 

4 shall be known as the ‘Emergency Contingency 

5 Fund for State Temporary Assistance for Needy 

6 Families Programs’ (in this subsection referred to as 

7 the ‘Emergency Fund’). 

8 ‘‘(2) DEPOSITS INTO FUND.—Out of any money 

9 in the Treasury of the United States not otherwise 

10 appropriated, there are appropriated such sums as 

11 are necessary for payment to the Emergency Fund. 

12 ‘‘(3) GRANTS.— 

13 ‘‘(A) GRANT RELATED TO CASELOAD IN14 CREASES.— 

15 ‘‘(i) IN GENERAL.—For each calendar 

16 quarter in fiscal year 2009 or 2010, the 

17 Secretary shall make a grant from the 

18 Emergency Fund to each State that— 

19 ‘‘(I) requests a grant under this 

20 subparagraph for the quarter; and 

21 ‘‘(II) meets the requirement of 

22 clause (ii) for the quarter. 

23 ‘‘(ii) CASELOAD INCREASE REQUIRE24 MENT.—A State meets the requirement of 

25 this clause for a quarter if the average 


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1 monthly assistance caseload of the State 

2 for the quarter exceeds the average month3 ly assistance caseload of the State for the 

4 corresponding quarter in the emergency 

5 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 subpara9 graph for a quarter shall be 80 percent of 

10 the amount (if any) by which the total ex11 penditures of the State for basic assistance 

12 (as defined by the Secretary) in the quar13 ter, whether under the State program 

14 funded under this part or as qualified 

15 State expenditures, exceeds the total ex16 penditures of the State for such assistance 

17 for the corresponding quarter in the emer18 gency fund base year of the State. 

19 ‘‘(B) GRANT RELATED TO INCREASED EX20 PENDITURES FOR NON-RECURRENT SHORT

21 TERM BENEFITS.— 

22 ‘‘(i) IN GENERAL.—For each calendar 

23 quarter in fiscal year 2009 or 2010, the 

24 Secretary shall make a grant from the 

25 Emergency Fund to each State that— 


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1 ‘‘(I) requests a grant under this 

2 subparagraph for the quarter; and 

3 ‘‘(II) meets the requirement of 

4 clause (ii) for the quarter. 

5 ‘‘(ii) NON-RECURRENT SHORT TERM

6 EXPENDITURE REQUIREMENT.—A State 

7 meets the requirement of this clause for a 

8 quarter if the total expenditures of the 

9 State for non-recurrent short term benefits 

10 in the quarter, whether under the State 

11 program funded under this part or as 

12 qualified State expenditures, exceeds the 

13 total such expenditures of the State for 

14 non-recurrent short term benefits in the 

15 corresponding quarter in the emergency 

16 fund base year of the State. 

17 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

18 paragraph (5), the amount of the grant to 

19 be made to a State under this subpara20 graph for a quarter shall be an amount 

21 equal to 80 percent of the excess described 

22 in clause (ii). 

23 ‘‘(C) GRANT RELATED TO INCREASED EX24 PENDITURES FOR SUBSIDIZED EMPLOYMENT.— 


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1 ‘‘(i) IN GENERAL.—For each calendar 

2 quarter in fiscal year 2009 or 2010, the 

3 Secretary shall make a grant from the 

4 Emergency Fund to each State that— 

5 ‘‘(I) requests a grant under this 

6 subparagraph for the quarter; and 

7 ‘‘(II) meets the requirement of 

8 clause (ii) for the quarter. 

9 ‘‘(ii) SUBSIDIZED EMPLOYMENT EX10 PENDITURE REQUIREMENT.—A State 

11 meets the requirement of this clause for a 

12 quarter if the total expenditures of the 

13 State for subsidized employment in the 

14 quarter, whether under the State program 

15 funded under this part or as qualified 

16 State expenditures, exceeds the total of 

17 such expenditures of the State in the cor18 responding quarter in the emergency fund 

19 base year of the State. 

20 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

21 paragraph (5), the amount of the grant to 

22 be made to a State under this subpara23 graph for a quarter shall be an amount 

24 equal to 80 percent of the excess described 

25 in clause (ii). 


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1 ‘‘(4) AUTHORITY TO MAKE NECESSARY ADJUST2 MENTS TO DATA AND COLLECT NEEDED DATA.—In 

3 determining the size of the caseload of a State and 

4 the expenditures of a State for basic assistance, non5 recurrent short-term benefits, and subsidized em6 ployment, during any period for which the State re7 quests funds under this subsection, and during the 

8 emergency fund base year of the State, the Sec9 retary may make appropriate adjustments to the 

10 data to ensure that the data reflect expenditures 

11 under the State program funded under this part and 

12 qualified State expenditures. The Secretary may de13 velop a mechanism for collecting expenditure data, 

14 including procedures which allow States to make 

15 reasonable estimates, and may set deadlines for 

16 making revisions to the data. 

17 ‘‘(5) LIMITATION.—The total amount payable 

18 to a single State under subsection (b) and this sub19 section for a fiscal year shall not exceed 25 percent 

20 of the State family assistance grant. 

21 ‘‘(6) LIMITATIONS ON USE OF FUNDS.—A State 

22 to which an amount is paid under this subsection 

23 may use the amount only as authorized by section 

24 404. 


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1 ‘‘(7) TIMING OF IMPLEMENTATION.—The Sec2 retary shall implement this subsection as quickly as 

3 reasonably possible, pursuant to appropriate guid4 ance to States. 

5 ‘‘(8) DEFINITIONS.—In this subsection: 

6 ‘‘(A) AVERAGE MONTHLY ASSISTANCE

7 CASELOAD.—The term ‘average monthly assist8 ance caseload’ means, with respect to a State 

9 and a quarter, the number of families receiving 

10 assistance during the quarter under the State 

11 program funded under this part or as qualified 

12 State expenditures, subject to adjustment under 

13 paragraph (4). 

14 ‘‘(B) EMERGENCY FUND BASE YEAR.— 

15 ‘‘(i) IN GENERAL.—The term ‘emer16 gency fund base year’ means, with respect 

17 to a State and a category described in 

18 clause (ii), whichever of fiscal year 2007 or 

19 2008 is the fiscal year in which the 

20 amount described by the category with re21 spect to the State is the lesser. 

22 ‘‘(ii) CATEGORIES DESCRIBED.—The 

23 categories described in this clause are the 

24 following: 


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1 ‘‘(I) The average monthly assist2 ance caseload of the State. 

3 ‘‘(II) The total expenditures of 

4 the State for non-recurrent short term 

5 benefits, whether under the State pro6 gram funded under this part or as 

7 qualified State expenditures. 

8 ‘‘(III) The total expenditures of 

9 the State for subsidized employment, 

10 whether under the State program 

11 funded under this part or as qualified 

12 State expenditures. 

13 ‘‘(C) QUALIFIED STATE EXPENDITURES.— 

14 The term ‘qualified State expenditures’ has the 

15 meaning given the term in section 409(a)(7).’’. 

16 (b) TEMPORARY MODIFICATION OF CASELOAD RE17 DUCTION CREDIT.—Section 407(b)(3)(A)(i) of such Act 

18 (42 U.S.C. 607(b)(3)(A)(i)) is amended by inserting ‘‘(or 

19 if the immediately preceding fiscal year is fiscal year 2009 

20 or 2010, then, at State option, during the emergency fund 

21 base year of the State with respect to the average monthly 

22 assistance caseload of the State (within the meaning of 

23 section 403(c)(8)(B)))’’ before ‘‘under the State’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on the date of the enactment 

3 of this Act. 

4 SEC. 2102. ONE-TIME EMERGENCY PAYMENT TO SSI RECIPI5 ENTS. 

6 (a) PAYMENT AUTHORITY.— 

7 (1) IN GENERAL.—At the earliest practicable 

8 date in calendar year 2009 but not later than 120 

9 days after the date of the enactment of this section, 

10 the Commissioner of Social Security shall make a 

11 one-time payment to each individual who is deter12 mined by the Commissioner in calendar year 2009 to 

13 be an individual who— 

14 (A) is entitled to a cash benefit under the 

15 supplemental security income program under 

16 title XVI of the Social Security Act (other than 

17 pursuant to section 1611(e)(1)(B) of such Act) 

18 for at least 1 day in the calendar month in 

19 which the first payment under this section is to 

20 be made; or 

21 (B)(i) was entitled to such a cash benefit 

22 (other than pursuant to section 1611(e)(1)(B) 

23 of such Act) for at least 1 day in the 2-month 

24 period preceding that calendar month; and 


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1 (ii) whose entitlement to that benefit 

2 ceased in that 2-month period solely because 

3 the income of the individual (and the income of 

4 the spouse, if any, of the individual) exceeded 

5 the applicable income limit described in para6 graph (1)(A) or (2)(A) of section 1611(a) of 

7 such Act. 

8 (2) AMOUNT OF PAYMENT.—Subject to sub9 section (b)(1) of this section, the amount of the pay10 ment shall be— 

11 (A) in the case of an individual eligible for 

12 a payment under this section who does not have 

13 a spouse eligible for such a payment, an 

14 amount equal to the average of the cash bene15 fits payable in the aggregate under section 

16 1611 or 1619(a) of the Social Security Act to 

17 eligible individuals who do not have an eligible 

18 spouse, for the most recent month for which 

19 data on payment of the benefits are available, 

20 as determined by the Commissioner of Social 

21 Security; or 

22 (B) in the case of an individual eligible for 

23 a payment under this section who has a spouse 

24 eligible for such a payment, an amount equal to 

25 the average of the cash benefits payable in the 


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1 aggregate under section 1611 or 1619(a) of the 

2 Social Security Act to eligible individuals who 

3 have an eligible spouse, for the most recent 

4 month for which data on payment of the bene5 fits are available, as so determined. 

6 (b) ADMINISTRATIVE PROVISIONS.— 

7 (1) AUTHORITY TO WITHHOLD PAYMENT TO

8 RECOVER PRIOR OVERPAYMENT OF SSI BENEFITS.— 

9 The Commissioner of Social Security may withhold 

10 part or all of a payment otherwise required to be 

11 made under subsection (a) of this section to an indi12 vidual, in order to recover a prior overpayment of 

13 benefits to the individual under the supplemental se14 curity income program under title XVI of the Social 

15 Security Act, subject to the limitations of section 

16 1631(b) of such Act. 

17 (2) PAYMENT TO BE DISREGARDED IN DETER18 MINING UNDERPAYMENTS UNDER THE SSI PRO19 GRAM.—A payment under subsection (a) shall be 

20 disregarded in determining whether there has been 

21 an underpayment of benefits under the supplemental 

22 security income program under title XVI of the So23 cial Security Act. 

24 (3) NONASSIGNMENT.—The provisions of sec25 tion 1631(d) of the Social Security Act shall apply 


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1 with respect to payments under this section to the 

2 same extent as they apply in the case of title XVI 

3 of such Act. 

4 (c) PAYMENTS TO BE DISREGARDED FOR PURPOSES

5 OF ALL FEDERAL AND FEDERALLY ASSISTED PRO6 GRAMS.—A payment under subsection (a) shall not be re7 garded as income to the recipient, and shall not be re8 garded as a resource of the recipient for the month of re9 ceipt and the following 6 months, for purposes of deter10 mining the eligibility of any individual for benefits or as11 sistance, or the amount or extent of benefits or assistance, 

12 under any Federal program or under any State or local 

13 program financed in whole or in part with Federal funds. 

14 (d) APPROPRIATION.—Out of any sums in the Treas15 ury of the United States not otherwise appropriated, there 

16 are appropriated such sums as may be necessary to carry 

17 out this section. 

18 SEC. 2103. TEMPORARY RESUMPTION OF PRIOR CHILD 

19 SUPPORT LAW. 

20 During the period that begins with October 1, 2008, 

21 and ends with September 30, 2010, section 455(a)(1) of 

22 the Social Security Act shall be applied and administered 

23 as if the phrase ‘‘from amounts paid to the State under 

24 section 458 or’’ did not appear in such section. 


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1 TITLE III—HEALTH INSURANCE 

2 ASSISTANCE FOR THE UNEM3 PLOYED 

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

5 TITLE. 

6 (a) SHORT TITLE OF TITLE.—This title may be cited 

7 as the ‘‘Health Insurance Assistance for the Unemployed 

8 Act of 2009’’. 

9 (b) TABLE OF CONTENTS OF TITLE.—The table of 

10 contents of this title is as follows: 

Sec. 3001. Short title and table of contents of title. 

Sec. 3002. Premium assistance for COBRA benefits and extension of COBRA 

benefits for older or long-term employees. 

Sec. 3003. Temporary optional Medicaid coverage for the unemployed. 

11 SEC. 3002. PREMIUM ASSISTANCE FOR COBRA BENEFITS 

12 AND EXTENSION OF COBRA BENEFITS FOR 

13 OLDER OR LONG-TERM EMPLOYEES. 

14 (a) PREMIUM ASSISTANCE FOR COBRA CONTINU15 ATION COVERAGE FOR INDIVIDUALS AND THEIR FAMI16 LIES.— 

17 (1) PROVISION OF PREMIUM ASSISTANCE.— 

18 (A) REDUCTION OF PREMIUMS PAY19 ABLE.—In the case of any premium for a pe20 riod of coverage beginning on or after the date 

21 of the enactment of this Act for COBRA con22 tinuation coverage with respect to any assist23 ance eligible individual, such individual shall be 


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1 treated for purposes of any COBRA continu2 ation provision as having paid the amount of 

3 such premium if such individual pays 35 per4 cent of the amount of such premium (as deter5 mined without regard to this subsection). 

6 (B) PREMIUM REIMBURSEMENT.—For pro7 visions providing the balance of such premium, 

8 see section 6431 of the Internal Revenue Code 

9 of 1986, as added by paragraph (12). 

10 (2) LIMITATION OF PERIOD OF PREMIUM AS11 SISTANCE.— 

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 

19 consisting of only dental, vision, coun20 seling, or referral services (or a combina21 tion thereof), coverage under a health re22 imbursement arrangement or a health 

23 flexible spending arrangement, or coverage 

24 of treatment that is furnished in an on-site 

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1 ployer and that consists primarily of first2 aid services, prevention and wellness care, 

3 or similar care (or a combination thereof)) 

4 or is eligible for benefits under title XVIII 

5 of the Social Security Act, or 

6 (ii) the earliest of— 

7 (I) the date which is 12 months 

8 after the first day of the first month 

9 that paragraph (1)(A) applies with re10 spect 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 

2 assistance 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 

7 group health plan in such time and manner as 

8 may be 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 

14 December 31, 2009, such qualified beneficiary 

15 is eligible 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 

20 involuntary termination of the covered employ21 ee’s employment and occurred during such pe22 riod. 

23 (4) EXTENSION OF ELECTION PERIOD AND EF24 FECT ON COVERAGE.— 


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1 (A) IN GENERAL.—Notwithstanding sec2 tion 605(a) of the Employee Retirement Income 

3 Security Act of 1974, section 4980B(f)(5)(A) of 

4 the Internal Revenue Code of 1986, section 

5 2205(a) of the Public Health Service Act, and 

6 section 8905a(c)(2) of title 5, United States 

7 Code, in the case of an individual who is a 

8 qualified beneficiary described in paragraph 

9 (3)(A) as of the date of the enactment of this 

10 Act and has not made the election referred to 

11 in paragraph (3)(B) as of such date, such indi12 vidual may elect the COBRA continuation cov13 erage under the COBRA continuation coverage 

14 provisions containing such sections during the 

15 60-day period commencing with the date on 

16 which the notification required under paragraph 

17 (7)(C) is provided to such individual. 

18 (B) COMMENCEMENT OF COVERAGE; NO

19 REACH-BACK.—Any COBRA continuation cov20 erage elected by a qualified beneficiary during 

21 an extended election period under subparagraph 

22 (A)— 

23 (i) shall commence on the date of the 

24 enactment of this Act, and 


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1 (ii) shall not extend beyond the period 

2 of COBRA continuation coverage that 

3 would have been required under the appli4 cable COBRA continuation coverage provi5 sion if the coverage had been elected as re6 quired under such provision. 

7 (C) PREEXISTING CONDITIONS.—With re8 spect to a qualified beneficiary who elects 

9 COBRA continuation coverage pursuant to sub10 paragraph (A), the period— 

11 (i) beginning on the date of the quali12 fying event, and 

13 (ii) ending with the day before the 

14 date of the enactment of this Act, 

15 shall be disregarded for purposes of deter16 mining the 63-day periods referred to in section 

17 701)(2) of the Employee Retirement Income 

18 Security Act of 1974, section 9801(c)(2) of the 

19 Internal Revenue Code of 1986, and section 

20 2701(c)(2) of the Public Health Service Act. 

21 (5) EXPEDITED REVIEW OF DENIALS OF PRE22 MIUM ASSISTANCE.—In any case in which an indi23 vidual requests treatment as an assistance eligible 

24 individual and is denied such treatment by the group 

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1 bility for COBRA continuation coverage, the Sec2 retary of Labor (or the Secretary of Health and 

3 Human services in connection with COBRA continu4 ation coverage which is provided other than pursu5 ant to part 6 of subtitle B of title I of the Employee 

6 Retirement Income Security Act of 1974), in con7 sultation with the Secretary of the Treasury, shall 

8 provide for expedited review of such denial. An indi9 vidual shall be entitled to such review upon applica10 tion to such Secretary in such form and manner as 

11 shall be provided by such Secretary. Such Secretary 

12 shall make a determination regarding such individ13 ual’s eligibility within 10 business days after receipt 

14 of such individual’s application for review under this 

15 paragraph. 

16 (6) DISREGARD OF SUBSIDIES FOR PURPOSES

17 OF FEDERAL AND STATE PROGRAMS.—Notwith18 standing any other provision of law, any premium 

19 reduction with respect to an assistance eligible indi20 vidual under this subsection shall not be considered 

21 income or resources in determining eligibility for, or 

22 the amount of assistance or benefits provided under, 

23 any other public benefit provided under Federal law 

24 or the law of any State or political subdivision there25 of. 


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1 (7) NOTICES TO INDIVIDUALS.— 

2 (A) GENERAL NOTICE.— 

3 (i) IN GENERAL.—In the case of no4 tices provided under section 606(4) of the 

5 Employee Retirement Income Security Act 

6 of 1974 (29 U.S.C. 1166(4)), section 

7 4980B(f)(6)(D) of the Internal Revenue 

8 Code of 1986, section 2206(4) of the Pub9 lic Health Service Act (42 U.S.C. 300bb10 6(4)), or section 8905a(f)(2)(A) of title 5, 

11 United States Code, with respect to indi12 viduals who, during the period described in 

13 paragraph (3)(A), become entitled to elect 

14 COBRA continuation coverage, such no15 tices shall include an additional notifica16 tion to the recipient of the availability of 

17 premium reduction with respect to such 

18 coverage under this subsection. 

19 (ii) ALTERNATIVE NOTICE.—In the 

20 case of COBRA continuation coverage to 

21 which the notice provision under such sec22 tions does not apply, the Secretary of 

23 Labor, in consultation with the Secretary 

24 of the Treasury and the Secretary of 

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1 ordination with administrators of the 

2 group health plans (or other entities) that 

3 provide or administer the COBRA continu4 ation coverage involved, provide rules re5 quiring the provision of such notice. 

6 (iii) FORM.—The requirement of the 

7 additional notification under this subpara8 graph may be met by amendment of exist9 ing notice forms or by inclusion of a sepa10 rate document with the notice otherwise 

11 required. 

12 (B) SPECIFIC REQUIREMENTS.—Each ad13 ditional notification under subparagraph (A) 

14 shall include— 

15 (i) the forms necessary for estab16 lishing eligibility for premium reduction 

17 under this subsection, 

18 (ii) the name, address, and telephone 

19 number necessary to contact the plan ad20 ministrator and any other person main21 taining relevant information in connection 

22 with such premium reduction, 

23 (iii) a description of the extended elec24 tion period provided for in paragraph 

25 (4)(A), 


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1 (iv) a description of the obligation of 

2 the qualified beneficiary under paragraph 

3 (2)(C) to notify the plan providing continu4 ation coverage of eligibility for subsequent 

5 coverage under another group health plan 

6 or eligibility for benefits under title XVIII 

7 of the Social Security Act and the penalty 

8 provided for failure to so notify the plan, 

9 and 

10 (v) a description, displayed in a 

11 prominent manner, of the qualified bene12 ficiary’s right to a reduced premium and 

13 any conditions on entitlement to the re14 duced premium. 

15 (C) NOTICE RELATING TO RETROACTIVE

16 COVERAGE.—In the case of an individual de17 scribed in paragraph (3)(A) who has elected 

18 COBRA continuation coverage as of the date of 

19 enactment of this Act or an individual described 

20 in paragraph (4)(A), the administrator of the 

21 group health plan (or other entity) involved 

22 shall provide (within 60 days after the date of 

23 enactment of this Act) for the additional notifi24 cation required to be provided under subpara25 graph (A). 


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1 (D) MODEL NOTICES.—Not later than 30 

2 days after the date of enactment of this Act, 

3 the Secretary of the Labor, in consultation with 

4 the Secretary of the Treasury and the Secretary 

5 of Health and Human Services, shall prescribe 

6 models for the additional notification required 

7 under this paragraph. 

8 (8) SAFEGUARDS.—The Secretary of the Treas9 ury shall provide such rules, procedures, regulations, 

10 and other guidance as may be necessary and appro11 priate to prevent fraud and abuse under this sub12 section. 

13 (9) OUTREACH.—The Secretary of Labor, in 

14 consultation with the Secretary of the Treasury and 

15 the Secretary of Health and Human Services, shall 

16 provide outreach consisting of public education and 

17 enrollment assistance relating to premium reduction 

18 provided under this subsection. Such outreach shall 

19 target employers, group health plan administrators, 

20 public assistance programs, States, insurers, and 

21 other entities as determined appropriate by such 

22 Secretaries. Such outreach shall include an initial 

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1 rollment, shall also be made available on website of 

2 the Departments of Labor, Treasury, and Health 

3 and Human Services. 

4 (10) DEFINITIONS.—For purposes of this sub5 section— 

6 (A) ADMINISTRATOR.—The term ‘‘admin7 istrator’’ has the meaning given such term in 

8 section 3(16) of the Employee Retirement In9 come Security Act of 1974. 

10 (B) COBRA CONTINUATION COVERAGE.— 

11 The term ‘‘COBRA continuation coverage’’ 

12 means continuation coverage provided pursuant 

13 to part 6 of subtitle B of title I of the Em14 ployee Retirement Income Security Act of 1974 

15 (other than under section 609), title XXII of 

16 the Public Health Service Act, section 4980B of 

17 the Internal Revenue Code of 1986 (other than 

18 subsection (f)(1) of such section insofar as it 

19 relates to pediatric vaccines), or section 8905a 

20 of title 5, United States Code, or under a State 

21 program that provides continuation coverage 

22 comparable to such continuation coverage. Such 

23 term does not include coverage under a health 

24 flexible spending arrangement. 


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1 (C) COBRA CONTINUATION PROVISION.— 

2 The term ‘‘COBRA continuation provision’’ 

3 means the provisions of law described in sub4 paragraph (B). 

5 (D) COVERED EMPLOYEE.—The term 

6 ‘‘covered employee’’ has the meaning given such 

7 term in section 607(2) of the Employee Retire8 ment Income Security Act of 1974. 

9 (E) QUALIFIED BENEFICIARY.—The term 

10 ‘‘qualified beneficiary’’ has the meaning given 

11 such term in section 607(3) of the Employee 

12 Retirement Income Security Act of 1974. 

13 (F) GROUP HEALTH PLAN.—The term 

14 ‘‘group health plan’’ has the meaning given 

15 such term in section 607(1) of the Employee 

16 Retirement Income Security Act of 1974. 

17 (G) STATE.—The term ‘‘State’’ includes 

18 the District of Columbia, the Commonwealth of 

19 Puerto Rico, the Virgin Islands, Guam, Amer20 ican Samoa, and the Commonwealth of the 

21 Northern Mariana Islands. 

22 (11) REPORTS.— 

23 (A) INTERIM REPORT.—The Secretary of 

24 the Treasury shall submit an interim report to 

25 the Committee on Education and Labor, the 


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1 Committee on Ways and Means, and the Com2 mittee on Energy and Commerce of the House 

3 of Representatives and the Committee on 

4 Health, Education, Labor, and Pensions and 

5 the Committee on Finance of the Senate re6 garding the premium reduction provided under 

7 this subsection that includes— 

8 (i) the number of individuals provided 

9 such assistance as of the date of the re10 port; and 

11 (ii) the total amount of expenditures 

12 incurred (with administrative expenditures 

13 noted separately) in connection with such 

14 assistance as of the date of the report. 

15 (B) FINAL REPORT.—As soon as prac16 ticable after the last period of COBRA continu17 ation coverage for which premium reduction is 

18 provided under this section, the Secretary of the 

19 Treasury shall submit a final report to each 

20 Committee referred to in subparagraph (A) that 

21 includes— 

22 (i) the number of individuals provided 

23 premium reduction under this section; 


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1 (ii) the average dollar amount 

2 (monthly and annually) of premium reduc3 tions provided to such individuals; and 

4 (iii) the total amount of expenditures 

5 incurred (with administrative expenditures 

6 noted separately) in connection with pre7 mium reduction under this section. 

8 (12) COBRA PREMIUM ASSISTANCE.— 

9 (A) IN GENERAL.—Subchapter B of chap10 ter 65 of the Internal Revenue Code of 1986 is 

11 amended by adding at the end the following 

12 new section: 

13 ‘‘SEC. 6431. COBRA PREMIUM ASSISTANCE. 

14 ‘‘(a) IN GENERAL.—The entity to whom premiums 

15 are payable under COBRA continuation coverage shall be 

16 reimbursed for the amount of premiums not paid by plan 

17 beneficiaries by reason of section 3002(a) of the Health 

18 Insurance Assistance for the Unemployed Act of 2009. 

19 Such amount shall be treated as a credit against the re20 quirement of such entity to make deposits of payroll taxes 

21 and the liability of such entity for payroll taxes. To the 

22 extent that such amount exceeds the amount of such 

23 taxes, the Secretary shall pay to such entity the amount 

24 of such excess. No payment may be made under this sub25 section to an entity with respect to any assistance eligible 


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1 individual until after such entity has received the reduced 

2 premium from such individual required under section 

3 3002(a)(1)(A) of such Act. 

4 ‘‘(b) PAYROLL TAXES.—For purposes of this section, 

5 the term ‘payroll taxes’ means— 

6 ‘‘(1) amounts required to be deducted and with7 held for the payroll period under section 3401 (relat8 ing to wage withholding), 

9 ‘‘(2) amounts required to be deducted for the 

10 payroll period under section 3102 (relating to FICA 

11 employee taxes), and 

12 ‘‘(3) amounts of the taxes imposed for the pay13 roll period under section 3111 (relating to FICA em14 ployer taxes). 

15 ‘‘(c) TREATMENT OF CREDIT.—Except as otherwise 

16 provided by the Secretary, the credit described in sub17 section (a) shall be applied as though the employer had 

18 paid to the Secretary, on the day that the qualified bene19 ficiary’s premium payment is received, an amount equal 

20 to such credit. 

21 ‘‘(d) TREATMENT OF PAYMENT.—For purposes of 

22 section 1324(b)(2) of title 31, United States Code, any 

23 payment under this section shall be treated in the same 

24 manner as a refund of the credit under section 35. 

25 ‘‘(e) REPORTING.— 


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1 ‘‘(1) IN GENERAL.—Each entity entitled to re2 imbursement under subsection (a) for any period 

3 shall submit such reports as the Secretary may re4 quire, including— 

5 ‘‘(A) an attestation of involuntary termi6 nation of employment for each covered em7 ployee on the basis of whose termination entitle8 ment to reimbursement is claimed under sub9 section (a), and 

10 ‘‘(B) a report of the amount of payroll 

11 taxes offset under subsection (a) for the report12 ing period and the estimated offsets of such 

13 taxes for the subsequent reporting period in 

14 connection with reimbursements under sub15 section (a). 

16 ‘‘(2) TIMING OF REPORTS RELATING TO

17 AMOUNT OF PAYROLL TAXES.—Reports required 

18 under paragraph (1)(B) shall be submitted at the 

19 same time as deposits of taxes imposed by chapters 

20 21, 22, and 24 or at such time as is specified by the 

21 Secretary. 

22 ‘‘(f) REGULATIONS.—The Secretary may issue such 

23 regulations or other guidance as may be necessary or ap24 propriate to carry out this section, including the require25 ment to report information or the establishment of other 


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1 methods for verifying the correct amounts of payments 

2 and credits under this section. The Secretary shall issue 

3 such regulations or guidance with respect to the applica4 tion of this section to group health plans that are multiem5 ployer plans (as defined in section 3(37) of the Employee 

6 Retirement Income Security Act of 1974).’’. 

7 (B) SOCIAL SECURITY TRUST FUNDS HELD

8 HARMLESS.—In determining any amount trans9 ferred or appropriated to any fund under the 

10 Social Security Act, section 6431 of the Inter11 nal Revenue Code of 1986 shall not be taken 

12 into account. 

13 (C) CLERICAL AMENDMENT.—The table of 

14 sections for subchapter B of chapter 65 of the 

15 Internal Revenue Code of 1986 is amended by 

16 adding at the end the following new item: 

‘‘Sec. 6431. COBRA premium assistance.’’. 

17 (D) EFFECTIVE DATE.—The amendments 

18 made by this paragraph shall apply to pre19 miums to which subsection (a)(1)(A) applies. 

20 (13) PENALTY FOR FAILURE TO NOTIFY

21 HEALTH PLAN OF CESSATION OF ELIGIBILITY FOR

22 PREMIUM ASSISTANCE.— 

23 (A) IN GENERAL.—Part I of subchapter B 

24 of chapter 68 of the Internal Revenue Code of 


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1 1986 is amended by adding at the end the fol2 lowing new section: 

3 ‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH 

4 PLAN OF CESSATION OF ELIGIBILITY FOR 

5 COBRA PREMIUM ASSISTANCE. 

6 ‘‘(a) IN GENERAL.—Any person required to notify a 

7 group health plan under section 3002(a)(2)(C)) of the 

8 Health Insurance Assistance for the Unemployed Act of 

9 2009 who fails to make such a notification at such time 

10 and in such manner as the Secretary of Labor may require 

11 shall pay a penalty of 110 percent of the premium reduc12 tion provided under such section after termination of eligi13 bility under such subsection. 

14 ‘‘(b) REASONABLE CAUSE EXCEPTION.—No penalty 

15 shall be imposed under subsection (a) with respect to any 

16 failure if it is shown that such failure is due to reasonable 

17 cause and not to willful neglect.’’. 

18 (B) CLERICAL AMENDMENT.—The table of 

19 sections of part I of subchapter B of chapter 68 

20 of such Code is amended by adding at the end 

21 the following new item: 

‘‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility 

for COBRA premium assistance.’’. 

22 (C) EFFECTIVE DATE.—The amendments 

23 made by this paragraph shall apply to failures 


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1 occurring after the date of the enactment of 

2 this Act. 

3 (14) COORDINATION WITH HCTC.— 

4 (A) IN GENERAL.—Subsection (g) of sec5 tion 35 of the Internal Revenue Code of 1986 

6 is amended by redesignating paragraph (9) as 

7 paragraph (10) and inserting after paragraph 

8 (8) the following new paragraph: 

9 ‘‘(9) COBRA PREMIUM ASSISTANCE.—In the 

10 case of an assistance eligible individual who receives 

11 premium reduction for COBRA continuation cov12 erage under section 3002(a) of the Health Insurance 

13 Assistance for the Unemployed Act of 2009 for any 

14 month during the taxable year, such individual shall 

15 not be treated as an eligible individual, a certified 

16 individual, or a qualifying family member for pur17 poses of this section or section 7527 with respect to 

18 such month.’’. 

19 (B) EFFECTIVE DATE.—The amendment 

20 made by subparagraph (A) shall apply to tax21 able years ending after the date of the enact22 ment of this Act. 

23 (15) EXCLUSION OF COBRA PREMIUM ASSIST24 ANCE FROM GROSS INCOME.— 


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1 (A) IN GENERAL.—Part III of subchapter 

2 B of chapter 1 of the Internal Revenue Code of 

3 1986 is amended by inserting after section 

4 139B the following new section: 

5 ‘‘SEC. 139C. COBRA PREMIUM ASSISTANCE. 

6 ‘‘In the case of an assistance eligible individual (as 

7 defined in section 3002 of the Health Insurance Assist8 ance for the Unemployed Act of 2009), gross income does 

9 not include any premium reduction provided under sub10 section (a) of such section.’’. 

11 (B) CLERICAL AMENDMENT.—The table of 

12 sections for part III of subchapter B of chapter 

13 1 of such Code is amended by inserting after 

14 the item relating to section 139B the following 

15 new item: 

‘‘Sec. 139C. COBRA premium assistance.’’. 

16 (C) EFFECTIVE DATE.—The amendments 

17 made by this paragraph shall apply to taxable 

18 years ending after the date of the enactment of 

19 this Act. 

20 (b) EXTENSION OF COBRA BENEFITS FOR OLDER

21 OR LONG-TERM EMPLOYEES.— 

22 (1) ERISA AMENDMENT.—Section 602(2)(A) 

23 of the Employee Retirement Income Security Act of 

24 1974 is amended by adding at the end the following 

25 new clauses: 


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1 ‘‘(x) SPECIAL RULE FOR OLDER OR

2 LONG-TERM EMPLOYEES GENERALLY.—In 

3 the case of a qualifying event described in 

4 section 603(2) with respect to a covered 

5 employee who (as of such qualifying event) 

6 has attained age 55 or has completed 10 

7 or more years of service with the entity 

8 that is the employer at the time of the 

9 qualifying event, clauses (i) and (ii) shall 

10 not apply. For purposes of this clause, in 

11 the case of a group health plan that is a 

12 multiemployer plan, service by the covered 

13 employee performed for 2 or more employ14 ers during periods for which such employ15 ers contributed to such plan shall be treat16 ed as service performed for the entity re17 ferred to in the preceding sentence. 

18 ‘‘(xi) YEAR OF SERVICE.— For pur19 poses of this subparagraph, the term ‘year 

20 of service’ shall have the meaning provided 

21 in section 202(a)(3).’’. 

22 (2) IRC AMENDMENT.—Clause (i) of section 

23 4980B(f)(2)(B) of the Internal Revenue Code of 

24 1986 is amended by adding at the end the following 

25 new subclauses: 


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1 ‘‘(X) SPECIAL RULE FOR OLDER

2 OR LONG-TERM EMPLOYEES GEN3 ERALLY.—In the case of a qualifying 

4 event described in paragraph (3)(B) 

5 with respect to a covered employee 

6 who (as of such qualifying event) has 

7 attained age 55 or has completed 10 

8 or more years of service with the enti9 ty that is the employer at the time of 

10 the qualifying event, subclauses (I) 

11 and (II) shall not apply. For purposes 

12 of this subclause, in the case of a 

13 group health plan that is a multiem14 ployer plan (as defined in section 

15 3(37) of the Employee Retirement In16 come Security Act of 1974), service by 

17 the covered employee performed for 2 

18 or more employers during periods for 

19 which such employers contributed to 

20 such plan shall be treated as service 

21 performed for the entity referred to in 

22 the preceding sentence. 

23 ‘‘(XI) YEAR OF SERVICE.— For 

24 purposes of this clause, the term ‘year 

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1 vided in section 202(a)(3) of the Em2 ployee Retirement Income Security 

3 Act of 1974.’’. 

4 (3) PHSA AMENDMENT.—Section 2202(2)(A) 

5 of the Public Health Service Act is amended by add6 ing at the end the following new clauses: 

7 ‘‘(viii) SPECIAL RULE FOR OLDER OR

8 LONG-TERM EMPLOYEES GENERALLY.—In 

9 the case of a qualifying event described in 

10 section 2203(2) with respect to a covered 

11 employee who (as of such qualifying event) 

12 has attained age 55 or has completed 10 

13 or more years of service with the entity 

14 that is the employer at the time of the 

15 qualifying event, clauses (i) and (ii) shall 

16 not apply. For purposes of this clause, in 

17 the case of a group health plan that is a 

18 multiemployer plan (as defined in section 

19 3(37) of the Employee Retirement Income 

20 Security Act of 1974), service by the cov21 ered employee performed for 2 or more 

22 employers during periods for which such 

23 employers contributed to such plan shall be 

24 treated as service performed for the entity 

25 referred to in the preceding sentence. 


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1 ‘‘(ix) YEAR OF SERVICE.— For pur2 poses of this subparagraph, the term ‘year 

3 of service’ shall have the meaning provided 

4 in section 202(a)(3) of the Employee Re5 tirement Income Security Act of 1974.’’. 

6 (4) EFFECTIVE DATE OF AMENDMENTS.—The 

7 amendments made by this subsection shall apply to 

8 periods of coverage which would (without regard to 

9 the amendments made by this section) end on or 

10 after the date of the enactment of this Act. 

11 SEC. 3003. TEMPORARY OPTIONAL MEDICAID COVERAGE 

12 FOR THE UNEMPLOYED. 

13 (a) IN GENERAL.—Section 1902 of the Social Secu14 rity Act (42 U.S.C. 1396b) is amended— 

15 (1) in subsection (a)(10)(A)(ii)— 

16 (A) by striking ‘‘or’’ at the end of sub17 clause (XVIII); 

18 (B) by adding ‘‘or’’ at the end of subclause 

19 (XIX); and 

20 (C) by adding at the end the following new 

21 subclause: 

22 ‘‘(XX) who are described in sub23 section (dd)(1) (relating to certain un24 employed individuals and their fami25 lies);’’; and 


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1 (2) by adding at the end the following new sub2 section: 

3 ‘‘(dd)(1) Individuals described in this paragraph 

4 are— 

5 ‘‘(A) individuals who— 

6 ‘‘(i) are within one or more of the categories de7 scribed in paragraph (2), as elected under the State 

8 plan; and 

9 ‘‘(ii) meet the applicable requirements of para10 graph (3); and 

11 ‘‘(B) individuals who— 

12 ‘‘(i) are the spouse, or dependent child under 

13 19 years of age, of an individual described in sub14 paragraph (A); and 

15 ‘‘(ii) meet the requirement of paragraph (3)(B). 

16 ‘‘(2) The categories of individuals described in this 

17 paragraph are each of the following: 

18 ‘‘(A)(i) Individuals who are receiving unemploy19 ment compensation benefits; and 

20 ‘‘(ii) individuals who were receiving, but have 

21 exhausted, unemployment compensation benefits on 

22 or after July 1, 2008. 

23 ‘‘(B) Individuals who are involuntarily unem24 ployed and were involuntarily separated from em25 ployment on or after September 1, 2008, and before 


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1 January 1, 2011, whose family gross income does 

2 not exceed a percentage specified by the State (not 

3 to exceed 200 percent) of the income official poverty 

4 line (as defined by the Office of Management and 

5 Budget, and revised annually in accordance with sec6 tion 673(2) of the Omnibus Budget Reconciliation 

7 Act of 1981) applicable to a family of the size in8 volved, and who, but for subsection 

9 (a)(10)(A)(ii)(XX), are not eligible for medical as10 sistance under this title or health assistance under 

11 title XXI. 

12 ‘‘(C) Individuals who are involuntarily unem13 ployed and were involuntarily separated from em14 ployment on or after September 1, 2008, and before 

15 January 1, 2011, who are members of households 

16 participating in the supplemental nutrition assist17 ance program established under the Food and Nutri18 tion Act of 2008 (7 U.S.C. 2011 et seq.), and who, 

19 but for subsection (a)(10)(A)(ii)(XX), are not eligi20 ble for medical assistance under this title or health 

21 assistance under title XXI. 

22 ‘‘(3) The requirements of this paragraph with respect 

23 to an individual are the following: 

24 ‘‘(A) In the case of individuals within a cat25 egory described in subparagraph (A)(i) of paragraph 


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1 (2), the individual was involuntarily separated from 

2 employment on or after September 1, 2008, and be3 fore January 1, 2011, or meets such comparable re4 quirement as the Secretary specifies through rule, 

5 guidance, or otherwise in the case of an individual 

6 who was an independent contractor. 

7 ‘‘(B) The individual is not otherwise covered 

8 under creditable coverage, as defined in section 

9 2701(c) of the Public Health Service Act (42 U.S.C. 

10 300gg(c)), but applied without regard to paragraph 

11 (1)(F) of such section and without regard to cov12 erage provided by reason of the application of sub13 section (a)(10)(A)(ii)(XX). 

14 ‘‘(4)(A) No income or resources test shall be applied 

15 with respect to any category of individuals described in 

16 subparagraph (A) or (C) of paragraph (2) who are eligible 

17 for medical assistance only by reason of the application 

18 of subsection (a)(10)(A)(ii)(XX). 

19 ‘‘(B) Nothing in this subsection shall be construed 

20 to prevent a State from imposing a resource test for the 

21 category of individuals described in paragraph (2)(B)). 

22 ‘‘(C) In the case of individuals described in paragraph 

23 (2)(A) or (2)(C), the requirements of subsections (i)(22) 

24 and (x) in section 1903 shall not apply.’’. 

25 (b) 100 PERCENT FEDERAL MATCHING RATE.— 


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1 (1) FMAP FOR TIME-LIMITED PERIOD.—The 

2 third sentence of section 1905(b) of such Act (42 

3 U.S.C. 1396d(b)) is amended by inserting before the 

4 period at the end the following: ‘‘and for items and 

5 services furnished on or after the date of enactment 

6 of this Act and before January 1, 2011, to individ7 uals who are eligible for medical assistance only by 

8 reason of the application of section 

9 1902(a)(10)(A)(ii)(XX)’’. 

10 (2) CERTAIN ENROLLMENT-RELATED ADMINIS11 TRATIVE COSTS.—Notwithstanding any other provi12 sion of law, for purposes of applying section 1903(a) 

13 of the Social Security Act (42 U.S.C. 1396b(a)), 

14 with respect to expenditures incurred on or after the 

15 date of the enactment of this Act and before Janu16 ary 1, 2011, for costs of administration (including 

17 outreach and the modification and operation of eligi18 bility information systems) attributable to eligibility 

19 determination and enrollment of individuals who are 

20 eligible for medical assistance only by reason of the 

21 application of section 1902(a)(10)(A)(ii)(XX) of 

22 such Act, as added by subsection (a)(1), the Federal 

23 matching percentage shall be 100 percent instead of 

24 the matching percentage otherwise applicable. 


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1 (c) CONFORMING AMENDMENTS.—(1) Section 

2 1903(f)(4) of such Act (42 U.S.C. 1396c(f)(4)) is amend3 ed by inserting ‘‘1902(a)(10)(A)(ii)(XX), or’’ after 

4 ‘‘1902(a)(10)(A)(ii)(XIX),’’. 

5 (2) Section 1905(a) of such Act (42 U.S.C. 

6 1396d(a)) is amended, in the matter preceding paragraph 

7 (1)— 

8 (A) by striking ‘‘or’’ at the end of clause (xii); 

9 (B) by adding ‘‘or’’ at the end of clause (xiii); 

10 and 

11 (C) by inserting after clause (xiii) the following 

12 new clause: 

13 ‘‘(xiv) individuals described in section 

14 1902(dd)(1),’’. 

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 ‘‘Health Information Technology for Economic and Clin20 ical Health Act’’ or the ‘‘HITECH Act’’. 

21 (b) TABLE OF CONTENTS OF TITLE.—The table of 

22 contents of this title is as follows: 

Sec. 4001. Short title; table of contents of title. 

Subtitle A—Promotion of Health Information Technology 

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

Sec. 4101. ONCHIT; standards development and adoption. 


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‘‘TITLE XXX—HEALTH INFORMATION TECHNOLOGY AND 

QUALITY 

‘‘Sec. 3000. Definitions. 

‘‘Subtitle A—Promotion of Health Information Technology 

‘‘Sec. 3001. Office of the National Coordinator for Health Information 

Technology. 

‘‘Sec. 3002. HIT Policy Committee. 

‘‘Sec. 3003. HIT Standards Committee. 

‘‘Sec. 3004. Process for adoption of endorsed recommendations; adoption 

of initial set of standards, implementation specifications, 

and certification criteria. 

‘‘Sec. 3005. Application and use of adopted standards and implementation 

specifications by Federal agencies. 

‘‘Sec. 3006. Voluntary application and use of adopted standards and implementation specifications by private entities. 

‘‘Sec. 3007. Federal health information technology. 

‘‘Sec. 3008. Transitions. 

‘‘Sec. 3009. Relation to HIPAA privacy and security law. 

‘‘Sec. 3010. Authorization for appropriations. 

Sec. 4102. Technical amendment. 

PART II—APPLICATION AND USE OF ADOPTED HEALTH INFORMATION

TECHNOLOGY STANDARDS; REPORTS

Sec. 4111. Coordination of Federal activities with adopted standards and implementation specifications. 

Sec. 4112. Application to private entities. 

Sec. 4113. Study and reports. 

Subtitle B—Testing of Health Information Technology 

Sec. 4201. National Institute for Standards and Technology testing. 

Sec. 4202. Research and development programs. 

Subtitle C—Incentives for the Use of Health Information Technology 

PART I—GRANTS AND LOANS FUNDING

Sec. 4301. Grant, loan, and demonstration programs. 

‘‘Subtitle B—Incentives for the Use of Health Information Technology 

‘‘Sec. 3011. Immediate funding to strengthen the health information technology infrastructure. 

‘‘Sec. 3012. Health information technology implementation assistance. 

‘‘Sec. 3013. State grants to promote health information technology. 

‘‘Sec. 3014. Competitive grants to States and Indian tribes for the development of loan programs to facilitate the widespread 

adoption of certified EHR technology. 

‘‘Sec. 3015. Demonstration program to integrate information technology 

into clinical education. 

‘‘Sec. 3016. Information technology professionals on health care. 

‘‘Sec. 3017. General grant and loan provisions. 

‘‘Sec. 3018. Authorization for appropriations. 


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PART II—MEDICARE PROGRAM

Sec. 4311. Incentives for eligible professionals. 

Sec. 4312. Incentives for hospitals. 

Sec. 4313. Treatment of payments and savings; implementation funding. 

Sec. 4314. Study on application of EHR payment incentives for providers not 

receiving other incentive payments. 

PART III—MEDICAID FUNDING

Sec. 4321. Medicaid provider HIT adoption and operation payments; implementation funding. 

Sec. 4322. Medicaid nursing home grant program. 

Subtitle D—Privacy 

Sec. 4400. Definitions. 

PART I—IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS

Sec. 4401. Application of security provisions and penalties to business associates of covered entities; annual guidance on security provisions. 

Sec. 4402. Notification in the case of breach. 

Sec. 4403. Education on Health Information Privacy. 

Sec. 4404. Application of privacy provisions and penalties to business associates 

of covered entities. 

Sec. 4405. Restrictions on certain disclosures and sales of health information; 

accounting of certain protected health information disclosures; 

access to certain information in electronic format. 

Sec. 4406. Conditions on certain contacts as part of health care operations. 

Sec. 4407. Temporary breach notification requirement for vendors of personal 

health records and other non-HIPAA covered entities. 

Sec. 4408. Business associate contracts required for certain entities. 

Sec. 4409. Clarification of application of wrongful disclosures criminal penalties. 

Sec. 4410. Improved enforcement. 

Sec. 4411. Audits. 

Sec. 4412. Special rule for information to reduce medication errors and improve 

patient safety. 

PART II—RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; 

EFFECTIVE DATE; REPORTS

Sec. 4421. Relationship to other laws. 

Sec. 4422. Regulatory references. 

Sec. 4423. Effective date. 

Sec. 4424. Studies, reports, guidance. 

Subtitle E—Miscellaneous Medicare Provisions 

Sec. 4501. Moratoria on certain Medicare regulations. 

Sec. 4502. Long-term care hospital technical corrections. 


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1 Subtitle A—Promotion of Health 

2 Information Technology 

3 PART I—IMPROVING HEALTH CARE QUALITY, 

4 SAFETY, AND EFFICIENCY 

5 SEC. 4101. ONCHIT; STANDARDS DEVELOPMENT AND ADOP6 TION. 

7 The Public Health Service Act (42 U.S.C. 201 et 

8 seq.) is amended by adding at the end the following: 

9 ‘‘TITLE XXX—HEALTH INFORMA10 TION TECHNOLOGY AND 

11 QUALITY 

12 ‘‘SEC. 3000. DEFINITIONS. 

13 ‘‘In this title: 

14 ‘‘(1) CERTIFIED EHR TECHNOLOGY.—The term 

15 ‘certified EHR technology’ means a qualified elec16 tronic health record that is certified pursuant to sec17 tion 3001(c)(5) as meeting standards adopted under 

18 section 3004 that are applicable to the type of 

19 record involved (as determined by the Secretary, 

20 such as an ambulatory electronic health record for 

21 office-based physicians or an inpatient hospital elec22 tronic health record for hospitals). 

23 ‘‘(2) ENTERPRISE INTEGRATION.—The term 

24 ‘enterprise integration’ means the electronic linkage 

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1 ment, and other interested parties, to enable the 

2 electronic exchange and use of health information 

3 among all the components in the health care infra4 structure in accordance with applicable law, and 

5 such term includes related application protocols and 

6 other related standards. 

7 ‘‘(3) HEALTH CARE PROVIDER.—The term 

8 ‘health care provider’ means a hospital, skilled nurs9 ing facility, nursing facility, home health entity or 

10 other long term care facility, health care clinic, Fed11 erally qualified health center, group practice (as de12 fined in section 1877(h)(4) of the Social Security 

13 Act), a pharmacist, a pharmacy, a laboratory, a phy14 sician (as defined in section 1861(r) of the Social 

15 Security Act), a practitioner (as described in section 

16 1842(b)(18)(C) of the Social Security Act), a pro17 vider operated by, or under contract with, the Indian 

18 Health Service or by an Indian tribe (as defined in 

19 the Indian Self-Determination and Education Assist20 ance Act), tribal organization, or urban Indian orga21 nization (as defined in section 4 of the Indian 

22 Health Care Improvement Act), a rural health clinic, 

23 a covered entity under section 340B, an ambulatory 

24 surgical center described in section 1833(i) of the 

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1 ity or clinician determined appropriate by the Sec2 retary. 

3 ‘‘(4) HEALTH INFORMATION.—The term ‘health 

4 information’ has the meaning given such term in 

5 section 1171(4) of the Social Security Act. 

6 ‘‘(5) HEALTH INFORMATION TECHNOLOGY.— 

7 The term ‘health information technology’ means 

8 hardware, software, integrated technologies and re9 lated licenses, intellectual property, upgrades, and 

10 packaged solutions sold as services that are specifi11 cally designed for use by health care entities for the 

12 electronic creation, maintenance, or exchange of 

13 health information. 

14 ‘‘(6) HEALTH PLAN.—The term ‘health plan’ 

15 has the meaning given such term in section 1171(5) 

16 of the Social Security Act. 

17 ‘‘(7) HIT POLICY COMMITTEE.—The term ‘HIT 

18 Policy Committee’ means such Committee estab19 lished under section 3002(a). 

20 ‘‘(8) HIT STANDARDS COMMITTEE.—The term 

21 ‘HIT Standards Committee’ means such Committee 

22 established under section 3003(a). 

23 ‘‘(9) INDIVIDUALLY IDENTIFIABLE HEALTH IN24 FORMATION.—The term ‘individually identifiable 


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1 health information’ has the meaning given such term 

2 in section 1171(6) of the Social Security Act. 

3 ‘‘(10) LABORATORY.—The term ‘laboratory’ 

4 has the meaning given such term in section 353(a). 

5 ‘‘(11) NATIONAL COORDINATOR.—The term 

6 ‘National Coordinator’ means the head of the Office 

7 of the National Coordinator for Health Information 

8 Technology established under section 3001(a). 

9 ‘‘(12) PHARMACIST.—The term ‘pharmacist’ 

10 has the meaning given such term in section 804(2) 

11 of the Federal Food, Drug, and Cosmetic Act. 

12 ‘‘(13) QUALIFIED ELECTRONIC HEALTH

13 RECORD.—The term ‘qualified electronic health 

14 record’ means an electronic record of health-related 

15 information on an individual that— 

16 ‘‘(A) includes patient demographic and 

17 clinical health information, such as medical his18 tory and problem lists; and 

19 ‘‘(B) has the capacity— 

20 ‘‘(i) to provide clinical decision sup21 port; 

22 ‘‘(ii) to support physician order entry; 

23 ‘‘(iii) to capture and query informa24 tion relevant to health care quality; and 


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1 ‘‘(iv) to exchange electronic health in2 formation with, and integrate such infor3 mation from other sources. 

4 ‘‘(14) STATE.—The term ‘State’ means each of 

5 the several States, the District of Columbia, Puerto 

6 Rico, the Virgin Islands, Guam, American Samoa, 

7 and the Northern Mariana Islands. 

8 ‘‘Subtitle A—Promotion of Health 

9 Information Technology 

10 ‘‘SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR 

11 HEALTH INFORMATION TECHNOLOGY. 

12 ‘‘(a) ESTABLISHMENT.—There is established within 

13 the Department of Health and Human Services an Office 

14 of the National Coordinator for Health Information Tech15 nology (referred to in this section as the ‘Office’). The Of16 fice shall be headed by a National Coordinator who shall 

17 be appointed by the Secretary and shall report directly to 

18 the Secretary. 

19 ‘‘(b) PURPOSE.—The National Coordinator shall per20 form the duties under subsection (c) in a manner con21 sistent with the development of a nationwide health infor22 mation technology infrastructure that allows for the elec23 tronic use and exchange of information and that— 


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1 ‘‘(1) ensures that each patient’s health informa2 tion is secure and protected, in accordance with ap3 plicable law; 

4 ‘‘(2) improves health care quality, reduces med5 ical errors, reduces health disparities, and advances 

6 the delivery of patient-centered medical care; 

7 ‘‘(3) reduces health care costs resulting from 

8 inefficiency, medical errors, inappropriate care, du9 plicative care, and incomplete information; 

10 ‘‘(4) provides appropriate information to help 

11 guide medical decisions at the time and place of 

12 care; 

13 ‘‘(5) ensures the inclusion of meaningful public 

14 input in such development of such infrastructure; 

15 ‘‘(6) improves the coordination of care and in16 formation among hospitals, laboratories, physician 

17 offices, and other entities through an effective infra18 structure for the secure and authorized exchange of 

19 health care information; 

20 ‘‘(7) improves public health activities and facili21 tates the early identification and rapid response to 

22 public health threats and emergencies, including bio23 terror events and infectious disease outbreaks; 

24 ‘‘(8) facilitates health and clinical research and 

25 health care quality; 


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1 ‘‘(9) promotes prevention of chronic diseases; 

2 ‘‘(10) promotes a more effective marketplace, 

3 greater competition, greater systems analysis, in4 creased consumer choice, and improved outcomes in 

5 health care services; and 

6 ‘‘(11) improves efforts to reduce health dispari7 ties. 

8 ‘‘(c) DUTIES OF THE NATIONAL COORDINATOR.— 

9 ‘‘(1) STANDARDS.—The National Coordinator 

10 shall review and determine whether to endorse each 

11 standard, implementation specification, and certifi12 cation criterion for the electronic exchange and use 

13 of health information that is recommended by the 

14 HIT Standards Committee under section 3003 for 

15 purposes of adoption under section 3004. The Coor16 dinator shall make such determination, and report to 

17 the Secretary such determination, not later than 45 

18 days after the date the recommendation is received 

19 by the Coordinator. 

20 ‘‘(2) HIT POLICY COORDINATION.— 

21 ‘‘(A) IN GENERAL.—The National Coordi22 nator shall coordinate health information tech23 nology policy and programs of the Department 

24 with those of other relevant executive branch 

25 agencies with a goal of avoiding duplication of 


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1 efforts and of helping to ensure that each agen2 cy undertakes health information technology ac3 tivities primarily within the areas of its greatest 

4 expertise and technical capability and in a man5 ner towards a coordinated national goal. 

6 ‘‘(B) HIT POLICY AND STANDARDS COM7 MITTEES.—The National Coordinator shall be a 

8 leading member in the establishment and oper9 ations of the HIT Policy Committee and the 

10 HIT Standards Committee and shall serve as a 

11 liaison among those two Committees and the 

12 Federal Government. 

13 ‘‘(3) STRATEGIC PLAN.— 

14 ‘‘(A) IN GENERAL.—The National Coordi15 nator shall, in consultation with other appro16 priate Federal agencies (including the National 

17 Institute of Standards and Technology), update 

18 the Federal Health IT Strategic Plan (devel19 oped as of June 3, 2008) to include specific ob20 jectives, milestones, and metrics with respect to 

21 the following: 

22 ‘‘(i) The electronic exchange and use 

23 of health information and the enterprise 

24 integration of such information. 


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1 ‘‘(ii) The utilization of an electronic 

2 health record for each person in the United 

3 States by 2014. 

4 ‘‘(iii) The incorporation of privacy and 

5 security protections for the electronic ex6 change of an individual’s individually iden7 tifiable health information. 

8 ‘‘(iv) Ensuring security methods to 

9 ensure appropriate authorization and elec10 tronic authentication of health information 

11 and specifying technologies or methodolo12 gies for rendering health information unus13 able, unreadable, or indecipherable. 

14 ‘‘(v) Specifying a framework for co15 ordination and flow of recommendations 

16 and policies under this subtitle among the 

17 Secretary, the National Coordinator, the 

18 HIT Policy Committee, the HIT Standards 

19 Committee, and other health information 

20 exchanges and other relevant entities. 

21 ‘‘(vi) Methods to foster the public un22 derstanding of health information tech23 nology. 

24 ‘‘(vii) Strategies to enhance the use of 

25 health information technology in improving 


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1 the quality of health care, reducing medical 

2 errors, reducing health disparities, improv3 ing public health, and improving the con4 tinuity of care among health care settings. 

5 ‘‘(B) COLLABORATION.—The strategic 

6 plan shall be updated through collaboration of 

7 public and private entities. 

8 ‘‘(C) MEASURABLE OUTCOME GOALS.— 

9 The strategic plan update shall include measur10 able outcome goals. 

11 ‘‘(D) PUBLICATION.—The National Coor12 dinator shall republish the strategic plan, in13 cluding all updates. 

14 ‘‘(4) WEBSITE.—The National Coordinator 

15 shall maintain and frequently update an Internet 

16 website on which there is posted information on the 

17 work, schedules, reports, recommendations, and 

18 other information to ensure transparency in pro19 motion of a nationwide health information tech20 nology infrastructure. 

21 ‘‘(5) CERTIFICATION.— 

22 ‘‘(A) IN GENERAL.—The National Coordi23 nator, in consultation with the Director of the 

24 National Institute of Standards and Tech25 nology, shall develop a program (either directly 


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1 or by contract) for the voluntary certification of 

2 health information technology as being in com3 pliance with applicable certification criteria 

4 adopted under this subtitle. Such program shall 

5 include testing of the technology in accordance 

6 with section 4201(b) of the HITECH Act. 

7 ‘‘(B) CERTIFICATION CRITERIA DE8 SCRIBED.—In this title, the term ‘certification 

9 criteria’ means, with respect to standards and 

10 implementation specifications for health infor11 mation technology, criteria to establish that the 

12 technology meets such standards and implemen13 tation specifications. 

14 ‘‘(6) REPORTS AND PUBLICATIONS.— 

15 ‘‘(A) REPORT ON ADDITIONAL FUNDING

16 OR AUTHORITY NEEDED.—Not later than 12 

17 months after the date of the enactment of this 

18 title, the National Coordinator shall submit to 

19 the appropriate committees of jurisdiction of 

20 the House of Representatives and the Senate a 

21 report on any additional funding or authority 

22 the Coordinator or the HIT Policy Committee 

23 or HIT Standards Committee requires to evalu24 ate and develop standards, implementation 

25 specifications, and certification criteria, or to 


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1 achieve full participation of stakeholders in the 

2 adoption of a nationwide health information 

3 technology infrastructure that allows for the 

4 electronic use and exchange of health informa5 tion. 

6 ‘‘(B) IMPLEMENTATION REPORT.—The 

7 National Coordinator shall prepare a report 

8 that identifies lessons learned from major pub9 lic and private health care systems in their im10 plementation of health information technology, 

11 including information on whether the tech12 nologies and practices developed by such sys13 tems may be applicable to and usable in whole 

14 or in part by other health care providers. 

15 ‘‘(C) ASSESSMENT OF IMPACT OF HIT ON

16 COMMUNITIES WITH HEALTH DISPARITIES AND

17 UNINSURED, UNDERINSURED, AND MEDICALLY

18 UNDERSERVED AREAS.—The National Coordi19 nator shall assess and publish the impact of 

20 health information technology in communities 

21 with health disparities and in areas with a high 

22 proportion of individuals who are uninsured, 

23 underinsured, and medically underserved indi24 viduals (including urban and rural areas) and 

25 identify practices to increase the adoption of 


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1 such technology by health care providers in 

2 such communities. 

3 ‘‘(D) EVALUATION OF BENEFITS AND

4 COSTS OF THE ELECTRONIC USE AND EX5 CHANGE OF HEALTH INFORMATION.—The Na6 tional Coordinator shall evaluate and publish 

7 evidence on the benefits and costs of the elec8 tronic use and exchange of health information 

9 and assess to whom these benefits and costs ac10 crue. 

11 ‘‘(E) RESOURCE REQUIREMENTS.—The 

12 National Coordinator shall estimate and publish 

13 resources required annually to reach the goal of 

14 utilization of an electronic health record for 

15 each person in the United States by 2014, in16 cluding the required level of Federal funding, 

17 expectations for regional, State, and private in18 vestment, and the expected contributions by vol19 unteers to activities for the utilization of such 

20 records. 

21 ‘‘(7) ASSISTANCE.—The National Coordinator 

22 may provide financial assistance to consumer advo23 cacy groups and not-for-profit entities that work in 

24 the public interest for purposes of defraying the cost 

25 to such groups and entities to participate under, 


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1 whether in whole or in part, the National Tech2 nology Transfer Act of 1995 (15 U.S.C. 272 note). 

3 ‘‘(8) GOVERNANCE FOR NATIONWIDE HEALTH

4 INFORMATION NETWORK.—The National Coordi5 nator shall establish a governance mechanism for the 

6 nationwide health information network. 

7 ‘‘(d) DETAIL OF FEDERAL EMPLOYEES.— 

8 ‘‘(1) IN GENERAL.—Upon the request of the 

9 National Coordinator, the head of any Federal agen10 cy is authorized to detail, with or without reimburse11 ment from the Office, any of the personnel of such 

12 agency to the Office to assist it in carrying out its 

13 duties under this section. 

14 ‘‘(2) EFFECT OF DETAIL.—Any detail of per15 sonnel under paragraph (1) shall— 

16 ‘‘(A) not interrupt or otherwise affect the 

17 civil service status or privileges of the Federal 

18 employee; and 

19 ‘‘(B) be in addition to any other staff of 

20 the Department employed by the National Co21 ordinator. 

22 ‘‘(3) ACCEPTANCE OF DETAILEES.—Notwith23 standing any other provision of law, the Office may 

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1 cies without regard to whether the agency described 

2 under paragraph (1) is reimbursed. 

3 ‘‘(e) CHIEF PRIVACY OFFICER OF THE OFFICE OF

4 THE NATIONAL COORDINATOR.—Not later than 12 

5 months after the date of the enactment of this title, the 

6 Secretary shall appoint a Chief Privacy Officer of the Of7 fice of the National Coordinator, whose duty it shall be 

8 to advise the National Coordinator on privacy, security, 

9 and data stewardship of electronic health information and 

10 to coordinate with other Federal agencies (and similar pri11 vacy officers in such agencies), with State and regional 

12 efforts, and with foreign countries with regard to the pri13 vacy, security, and data stewardship of electronic individ14 ually identifiable health information. 

15 ‘‘SEC. 3002. HIT POLICY COMMITTEE. 

16 ‘‘(a) ESTABLISHMENT.—There is established a HIT 

17 Policy Committee to make policy recommendations to the 

18 National Coordinator relating to the implementation of a 

19 nationwide health information technology infrastructure, 

20 including implementation of the strategic plan described 

21 in section 3001(c)(3). 

22 ‘‘(b) DUTIES.— 

23 ‘‘(1) RECOMMENDATIONS ON HEALTH INFOR24 MATION TECHNOLOGY INFRASTRUCTURE.—The HIT 

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1 work for the development and adoption of a nation2 wide health information technology infrastructure 

3 that permits the electronic exchange and use of 

4 health information as is consistent with the strategic 

5 plan under section 3001(c)(3) and that includes the 

6 recommendations under paragraph (2). The Com7 mittee shall update such recommendations and make 

8 new recommendations as appropriate. 

9 ‘‘(2) SPECIFIC AREAS OF STANDARD DEVELOP10 MENT.— 

11 ‘‘(A) IN GENERAL.—The HIT Policy Com12 mittee shall recommend the areas in which 

13 standards, implementation specifications, and 

14 certification criteria are needed for the elec15 tronic exchange and use of health information 

16 for purposes of adoption under section 3004 

17 and shall recommend an order of priority for 

18 the development, harmonization, and recogni19 tion of such standards, specifications, and cer20 tification criteria among the areas so rec21 ommended. Such standards and implementation 

22 specifications shall include named standards, 

23 architectures, and software schemes for the au24 thentication and security of individually identifi25 able health information and other information 


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1 as needed to ensure the reproducible develop2 ment of common solutions across disparate en3 tities. 

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 in20 formation. 

21 ‘‘(ii) A nationwide health information 

22 technology infrastructure that allows for 

23 the electronic use and accurate exchange of 

24 health information. 


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1 ‘‘(iii) The utilization of a certified 

2 electronic health record for each person in 

3 the 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 

7 covered entity (as defined for purposes of 

8 regulations promulgated under section 

9 264(c) of the Health Insurance Portability 

10 and Accountability Act of 1996) for pur11 poses of treatment, payment, and health 

12 care operations (as such terms are defined 

13 for purposes 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 

19 care providers, by reducing medical errors, 

20 by improving population health, by reduc21 ing health disparities, and by advancing re22 search and education. 

23 ‘‘(vi) Technologies that allow individ24 ually identifiable health information to be 

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1 pherable to unauthorized individuals when 

2 such information is transmitted in the na3 tionwide health information network or 

4 physically transported outside of the se5 cured, physical perimeter of a health care 

6 provider, health plan, or health care clear7 inghouse. 

8 ‘‘(C) OTHER AREAS FOR CONSIDER9 ATION.—In making recommendations under 

10 subparagraph (A), the HIT Policy Committee 

11 may consider the following additional areas: 

12 ‘‘(i) The appropriate uses of a nation13 wide health information infrastructure, in14 cluding for purposes of— 

15 ‘‘(I) the collection of quality data 

16 and public reporting; 

17 ‘‘(II) biosurveillance and public 

18 health; 

19 ‘‘(III) medical and clinical re20 search; and 

21 ‘‘(IV) drug safety. 

22 ‘‘(ii) Self-service technologies that fa23 cilitate the use and exchange of patient in24 formation and reduce wait times. 


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1 ‘‘(iii) Telemedicine technologies, in 

2 order to reduce travel requirements for pa3 tients in remote areas. 

4 ‘‘(iv) Technologies that facilitate home 

5 health care and the monitoring of patients 

6 recuperating at home. 

7 ‘‘(v) Technologies that help reduce 

8 medical errors. 

9 ‘‘(vi) Technologies that facilitate the 

10 continuity of care among health settings. 

11 ‘‘(vii) Technologies that meet the 

12 needs of diverse populations. 

13 ‘‘(viii) Any other technology that the 

14 HIT Policy Committee finds to be among 

15 the technologies with the greatest potential 

16 to improve the quality and efficiency of 

17 health care. 

18 ‘‘(3) FORUM.—The HIT Policy Committee shall 

19 serve as a forum for broad stakeholder input with 

20 specific expertise in policies relating to the matters 

21 described in paragraphs (1) and (2). 

22 ‘‘(c) MEMBERSHIP AND OPERATIONS.— 

23 ‘‘(1) IN GENERAL.—The National Coordinator 

24 shall provide leadership in the establishment and op25 erations of the HIT Policy Committee. 


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1 ‘‘(2) MEMBERSHIP.—The membership of the 

2 HIT Policy Committee shall at least reflect pro3 viders, ancillary healthcare workers, consumers, pur4 chasers, health plans, technology vendors, research5 ers, relevant Federal agencies, and individuals with 

6 technical expertise on health care quality, privacy 

7 and security, and on the electronic exchange and use 

8 of health information. 

9 ‘‘(3) CONSIDERATION.—The National Coordi10 nator shall ensure that the relevant recommenda11 tions and comments from the National Committee 

12 on Vital and Health Statistics are considered in the 

13 development of policies. 

14 ‘‘(d) APPLICATION OF FACA.—The Federal Advisory 

15 Committee Act (5 U.S.C. App.), other than section 14 of 

16 such Act, shall apply to the HIT Policy Committee. 

17 ‘‘(e) PUBLICATION.—The Secretary shall provide for 

18 publication in the Federal Register and the posting on the 

19 Internet website of the Office of the National Coordinator 

20 for Health Information Technology of all policy rec21 ommendations made by the HIT Policy Committee under 

22 this section. 

23 ‘‘SEC. 3003. HIT STANDARDS COMMITTEE. 

24 ‘‘(a) ESTABLISHMENT.—There is established a com25 mittee to be known as the HIT Standards Committee to 


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1 recommend to the National Coordinator standards, imple2 mentation specifications, and certification criteria for the 

3 electronic exchange and use of health information for pur4 poses of adoption under section 3004, consistent with the 

5 implementation of the strategic plan described in section 

6 3001(c)(3) and beginning with the areas listed in section 

7 3002(b)(2)(B) in accordance with policies developed by 

8 the HIT Policy Committee. 

9 ‘‘(b) DUTIES.— 

10 ‘‘(1) STANDARDS DEVELOPMENT.— 

11 ‘‘(A) IN GENERAL.—The HIT Standards 

12 Committee shall recommend to the National 

13 Coordinator standards, implementation speci14 fications, and certification criteria described in 

15 subsection (a) that have been developed, har16 monized, or recognized by the HIT Standards 

17 Committee. The HIT Standards Committee 

18 shall update such recommendations and make 

19 new recommendations as appropriate, including 

20 in response to a notification sent under section 

21 3004(a)(2)(B). Such recommendations shall be 

22 consistent with the latest recommendations 

23 made by the HIT Policy Committee. 

24 ‘‘(B) PILOT TESTING OF STANDARDS AND

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1 velopment, harmonization, or recognition of 

2 standards and implementation specifications, 

3 the HIT Standards Committee shall, as appro4 priate, provide for the testing of such standards 

5 and specifications by the National Institute for 

6 Standards and Technology under section 

7 4201(a) of the HITECH Act. 

8 ‘‘(C) CONSISTENCY.—The standards, im9 plementation specifications, and certification 

10 criteria recommended under this subsection 

11 shall be consistent with the standards for infor12 mation transactions and data elements adopted 

13 pursuant to section 1173 of the Social Security 

14 Act. 

15 ‘‘(2) FORUM.—The HIT Standards Committee 

16 shall serve as a forum for the participation of a 

17 broad range of stakeholders to provide input on the 

18 development, harmonization, and recognition of 

19 standards, implementation specifications, and certifi20 cation criteria necessary for the development and 

21 adoption of a nationwide health information tech22 nology infrastructure that allows for the electronic 

23 use and exchange of health information. 

24 ‘‘(3) SCHEDULE.—Not later than 90 days after 

25 the date of the enactment of this title, the HIT 


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1 Standards Committee shall develop a schedule for 

2 the assessment of policy recommendations developed 

3 by the HIT Policy Committee under section 3002. 

4 The HIT Standards Committee shall update such 

5 schedule annually. The Secretary shall publish such 

6 schedule in the Federal Register. 

7 ‘‘(4) PUBLIC INPUT.—The HIT Standards 

8 Committee shall conduct open public meetings and 

9 develop a process to allow for public comment on the 

10 schedule described in paragraph (3) and rec11 ommendations described in this subsection. Under 

12 such process comments shall be submitted in a time13 ly manner after the date of publication of a rec14 ommendation under this subsection. 

15 ‘‘(c) MEMBERSHIP AND OPERATIONS.— 

16 ‘‘(1) IN GENERAL.—The National Coordinator 

17 shall provide leadership in the establishment and op18 erations of the HIT Standards Committee. 

19 ‘‘(2) MEMBERSHIP.—The membership of the 

20 HIT Standards Committee shall at least reflect pro21 viders, ancillary healthcare workers, consumers, pur22 chasers, health plans, technology vendors, research23 ers, relevant Federal agencies, and individuals with 

24 technical expertise on health care quality, privacy 


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1 and security, and on the electronic exchange and use 

2 of health information. 

3 ‘‘(3) CONSIDERATION.—The National Coordi4 nator shall ensure that the relevant recommenda5 tions and comments from the National Committee 

6 on Vital and Health Statistics are considered in the 

7 development of standards. 

8 ‘‘(4) ASSISTANCE.—For the purposes of car9 rying out this section, the Secretary may provide or 

10 ensure that financial assistance is provided by the 

11 HIT Standards Committee to defray in whole or in 

12 part any membership fees or dues charged by such 

13 Committee to those consumer advocacy groups and 

14 not for profit entities that work in the public inter15 est as a part of their mission. 

16 ‘‘(d) APPLICATION OF FACA.—The Federal Advisory 

17 Committee Act (5 U.S.C. App.), other than section 14, 

18 shall apply to the HIT Standards Committee. 

19 ‘‘(e) PUBLICATION.—The Secretary shall provide for 

20 publication in the Federal Register and the posting on the 

21 Internet website of the Office of the National Coordinator 

22 for Health Information Technology of all recommenda23 tions made by the HIT Standards Committee under this 

24 section. 


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1 ‘‘SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED REC2 OMMENDATIONS; ADOPTION OF INITIAL SET 

3 OF STANDARDS, IMPLEMENTATION SPECI4 FICATIONS, AND CERTIFICATION CRITERIA. 

5 ‘‘(a) PROCESS FOR ADOPTION OF ENDORSED REC6 OMMENDATIONS.— 

7 ‘‘(1) REVIEW OF ENDORSED STANDARDS, IM8 PLEMENTATION SPECIFICATIONS, AND CERTIFI9 CATION CRITERIA.—Not later than 90 days after the 

10 date of receipt of standards, implementation speci11 fications, or certification criteria endorsed under sec12 tion 3001(c), the Secretary, in consultation with rep13 resentatives of other relevant Federal agencies, shall 

14 jointly review such standards, implementation speci15 fications, or certification criteria and shall determine 

16 whether or not to propose adoption of such stand17 ards, implementation specifications, or certification 

18 criteria. 

19 ‘‘(2) DETERMINATION TO ADOPT STANDARDS, 

20 IMPLEMENTATION SPECIFICATIONS, AND CERTIFI21 CATION CRITERIA.—If the Secretary determines— 

22 ‘‘(A) to propose adoption of any grouping 

23 of such standards, implementation specifica24 tions, or certification criteria, the Secretary 

25 shall, by regulation, determine whether or not 


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1 to adopt such grouping of standards, implemen2 tation specifications, or certification criteria; or 

3 ‘‘(B) not to propose adoption of any group4 ing of standards, implementation specifications, 

5 or certification criteria, the Secretary shall no6 tify the National Coordinator and the HIT 

7 Standards Committee in writing of such deter8 mination and the reasons for not proposing the 

9 adoption of such recommendation. 

10 ‘‘(3) PUBLICATION.—The Secretary shall pro11 vide for publication in the Federal Register of all de12 terminations made by the Secretary under para13 graph (1). 

14 ‘‘(b) ADOPTION OF INITIAL SET OF STANDARDS, IM15 PLEMENTATION SPECIFICATIONS, AND CERTIFICATION

16 CRITERIA.— 

17 ‘‘(1) IN GENERAL.—Not later than December 

18 31, 2009, the Secretary shall, through the rule19 making process described in section 3004(a), adopt 

20 an initial set of standards, implementation specifica21 tions, and certification criteria for the areas required 

22 for consideration under section 3002(b)(2)(B). 

23 ‘‘(2) APPLICATION OF CURRENT STANDARDS, 

24 IMPLEMENTATION SPECIFICATIONS, AND CERTIFI25 CATION CRITERIA.—The standards, implementation 


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1 specifications, and certification criteria adopted be2 fore the date of the enactment of this title through 

3 the process existing through the Office of the Na4 tional Coordinator for Health Information Tech5 nology may be applied towards meeting the require6 ment of paragraph (1). 

7 ‘‘SEC. 3005. APPLICATION AND USE OF ADOPTED STAND8 ARDS AND IMPLEMENTATION SPECIFICA9 TIONS BY FEDERAL AGENCIES. 

10 ‘‘For requirements relating to the application and use 

11 by Federal agencies of the standards and implementation 

12 specifications adopted under section 3004, see section 

13 4111 of the HITECH Act. 

14 ‘‘SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPT15 ED STANDARDS AND IMPLEMENTATION 

16 SPECIFICATIONS BY PRIVATE ENTITIES. 

17 ‘‘(a) IN GENERAL.—Except as provided under section 

18 4112 of the HITECH Act, any standard or implementa19 tion specification adopted under section 3004 shall be vol20 untary with respect to private entities. 

21 ‘‘(b) RULE OF CONSTRUCTION.—Nothing in this sub22 title shall be construed to require that a private entity that 

23 enters into a contract with the Federal Government apply 

24 or use the standards and implementation specifications 


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1 adopted under section 3004 with respect to activities not 

2 related to the contract. 

3 ‘‘SEC. 3007. FEDERAL HEALTH INFORMATION TECH4 NOLOGY. 

5 ‘‘(a) IN GENERAL.—The National Coordinator shall 

6 support the development, routine updating, and provision 

7 of qualified EHR technology (as defined in section 3000) 

8 consistent with subsections (b) and (c) unless the Sec9 retary determines that the needs and demands of pro10 viders are being substantially and adequately met through 

11 the marketplace. 

12 ‘‘(b) CERTIFICATION.—In making such EHR tech13 nology publicly available, the National Coordinator shall 

14 ensure that the qualified EHR technology described in 

15 subsection (a) is certified under the program developed 

16 under section 3001(c)(3) to be in compliance with applica17 ble standards adopted under section 3003(a). 

18 ‘‘(c) AUTHORIZATION TO CHARGE A NOMINAL

19 FEE.—The National Coordinator may impose a nominal 

20 fee for the adoption by a health care provider of the health 

21 information technology system developed or approved 

22 under subsection (a) and (b). Such fee shall take into ac23 count the financial circumstances of smaller providers, low 

24 income providers, and providers located in rural or other 

25 medically underserved areas. 


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1 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec2 tion shall be construed to require that a private or govern3 ment entity adopt or use the technology provided under 

4 this section. 

5 ‘‘SEC. 3008. TRANSITIONS. 

6 ‘‘(a) ONCHIT.—To the extent consistent with sec7 tion 3001, all functions, personnel, assets, liabilities, and 

8 administrative actions applicable to the National Coordi9 nator for Health Information Technology appointed under 

10 Executive Order No. 13335 or the Office of such National 

11 Coordinator on the date before the date of the enactment 

12 of this title shall be transferred to the National Coordi13 nator appointed under section 3001(a) and the Office of 

14 such National Coordinator as of the date of the enactment 

15 of this title. 

16 ‘‘(b) AHIC.— 

17 ‘‘(1) To the extent consistent with sections 

18 3002 and 3003, all functions, personnel, assets, and 

19 liabilities applicable to the AHIC Successor, Inc. 

20 doing business as the National eHealth Collaborative 

21 as of the day before the date of the enactment of 

22 this title shall be transferred to the HIT Policy 

23 Committee or the HIT Standards Committee, estab24 lished under section 3002(a) or 3003(a), as appro25 priate, as of the date of the enactment of this title. 


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1 ‘‘(2) In carrying out section 3003(b)(1)(A), 

2 until recommendations are made by the HIT Policy 

3 Committee, recommendations of the HIT Standards 

4 Committee shall be consistent with the most recent 

5 recommendations made by such AHIC Successor, 

6 Inc. 

7 ‘‘(c) RULES OF CONSTRUCTION.— 

8 ‘‘(1) ONCHIT.—Nothing in section 3001 or 

9 subsection (a) shall be construed as requiring the 

10 creation of a new entity to the extent that the Office 

11 of the National Coordinator for Health Information 

12 Technology established pursuant to Executive Order 

13 No. 13335 is consistent with the provisions of sec14 tion 3001. 

15 ‘‘(2) AHIC.—Nothing in sections 3002 or 3003 

16 or subsection (b) shall be construed as prohibiting 

17 the AHIC Successor, Inc. doing business as the Na18 tional eHealth Collaborative from modifying its char19 ter, duties, membership, and any other structure or 

20 function required to be consistent with section 3002 

21 and 3003 in a manner that would permit the Sec22 retary to choose to recognize such AHIC Successor, 

23 Inc. as the HIT Policy Committee or the HIT 

24 Standards Committee. 


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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 

4 this 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 

10 and implementation specifications adopted under 

11 section 3004 take into account the requirements of 

12 HIPAA 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 title IV of the HITECH Act; and 

19 ‘‘(2) regulations under such provisions. 

20 ‘‘SEC. 3010. AUTHORIZATION FOR APPROPRIATIONS. 

21 ‘‘There is authorized to be appropriated to the Office 

22 of the National Coordinator for Health Information Tech23 nology to carry out this subtitle $250,000,000 for fiscal 

24 year 2009.’’. 


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1 SEC. 4102. TECHNICAL AMENDMENT. 

2 Section 1171(5) of the Social Security Act (42 U.S.C. 

3 1320d) is amended by striking ‘‘or C’’ and inserting ‘‘C, 

4 or D’’. 

5 PART II—APPLICATION AND USE OF ADOPTED 

6 HEALTH INFORMATION TECHNOLOGY 

7 STANDARDS; REPORTS 

8 SEC. 4111. COORDINATION OF FEDERAL ACTIVITIES WITH 

9 ADOPTED STANDARDS AND IMPLEMENTA10 TION SPECIFICATIONS. 

11 (a) SPENDING ON HEALTH INFORMATION TECH12 NOLOGY SYSTEMS.—As each agency (as defined in the Ex13 ecutive order issued on August 22, 2006, relating to pro14 moting quality and efficient health care in Federal govern15 ment administered or sponsored health care programs) im16 plements, acquires, or upgrades health information tech17 nology systems used for the direct exchange of individually 

18 identifiable health information between agencies and with 

19 non-Federal entities, it shall utilize, where available, 

20 health information technology systems and products that 

21 meet standards and implementation specifications adopted 

22 under section 3004 of the Public Health Service Act, as 

23 added by section 4101. 

24 (b) FEDERAL INFORMATION COLLECTION ACTIVI25 TIES.—With respect to a standard or implementation 

26 specification adopted under section 3004 of the Public 


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1 Health Service Act, as added by section 4101, the Presi2 dent shall take measures to ensure that Federal activities 

3 involving the broad collection and submission of health in4 formation are consistent with such standard or implemen5 tation specification, respectively, within three years after 

6 the date of such adoption. 

7 (c) APPLICATION OF DEFINITIONS.—The definitions 

8 contained in section 3000 of the Public Health Service 

9 Act, as added by section 4101, shall apply for purposes 

10 of this part. 

11 SEC. 4112. APPLICATION TO PRIVATE ENTITIES. 

12 Each agency (as defined in such Executive Order 

13 issued on August 22, 2006, relating to promoting quality 

14 and efficient health care in Federal government adminis15 tered or sponsored health care programs) shall require in 

16 contracts or agreements with health care providers, health 

17 plans, or health insurance issuers that as each provider, 

18 plan, or issuer implements, acquires, or upgrades health 

19 information technology systems, it shall utilize, where 

20 available, health information technology systems and prod21 ucts that meet standards and implementation specifica22 tions adopted under section 3004 of the Public Health 

23 Service Act, as added by section 4101. 


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1 SEC. 4113. STUDY AND REPORTS. 

2 (a) REPORT ON ADOPTION OF NATIONWIDE SYS3 TEM.—Not later than 2 years after the date of the enact4 ment of this Act and annually thereafter, the Secretary 

5 of Health and Human Services shall submit to the appro6 priate committees of jurisdiction of the House of Rep7 resentatives and the Senate a report that— 

8 (1) describes the specific actions that have been 

9 taken by the Federal Government and private enti10 ties to facilitate the adoption of a nationwide system 

11 for the electronic use and exchange of health infor12 mation; 

13 (2) describes barriers to the adoption of such a 

14 nationwide system; and 

15 (3) contains recommendations to achieve full 

16 implementation of such a nationwide system. 

17 (b) REIMBURSEMENT INCENTIVE STUDY AND RE18 PORT.— 

19 (1) STUDY.—The Secretary of Health and 

20 Human Services shall carry out, or contract with a 

21 private entity to carry out, a study that examines 

22 methods to create efficient reimbursement incentives 

23 for improving health care quality in Federally quali24 fied health centers, rural health clinics, and free 

25 clinics. 


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1 (2) REPORT.—Not later than 2 years after the 

2 date of the enactment of this Act, the Secretary of 

3 Health and Human Services shall submit to the ap4 propriate committees of jurisdiction of the House of 

5 Representatives and the Senate a report on the 

6 study carried out under paragraph (1). 

7 (c) AGING SERVICES TECHNOLOGY STUDY AND RE8 PORT.— 

9 (1) IN GENERAL.—The Secretary of Health and 

10 Human Services shall carry out, or contract with a 

11 private entity to carry out, a study of matters relat12 ing to the potential use of new aging services tech13 nology to assist seniors, individuals with disabilities, 

14 and their caregivers throughout the aging process. 

15 (2) MATTERS TO BE STUDIED.—The study 

16 under paragraph (1) shall include— 

17 (A) an evaluation of— 

18 (i) methods for identifying current, 

19 emerging, and future health technology 

20 that can be used to meet the needs of sen21 iors and individuals with disabilities and 

22 their caregivers across all aging services 

23 settings, as specified by the Secretary; 

24 (ii) methods for fostering scientific in25 novation with respect to aging services 


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1 technology within the business and aca2 demic communities; and 

3 (iii) developments in aging services 

4 technology in other countries that may be 

5 applied in the United States; and 

6 (B) identification of— 

7 (i) barriers to innovation in aging 

8 services technology and devising strategies 

9 for removing such barriers; and 

10 (ii) barriers to the adoption of aging 

11 services technology by health care pro12 viders and consumers and devising strate13 gies to removing such barriers. 

14 (3) REPORT.—Not later than 24 months after 

15 the date of the enactment of this Act, the Secretary 

16 shall submit to the appropriate committees of juris17 diction of the House of Representatives and of the 

18 Senate a report on the study carried out under para19 graph (1). 

20 (4) DEFINITIONS.—For purposes of this sub21 section: 

22 (A) AGING SERVICES TECHNOLOGY.—The 

23 term ‘‘aging services technology’’ means health 

24 technology that meets the health care needs of 


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1 seniors, individuals with disabilities, and the 

2 caregivers of such seniors and individuals. 

3 (B) SENIOR.—The term ‘‘senior’’ has such 

4 meaning as specified by the Secretary. 

5 Subtitle B—Testing of Health 

6 Information Technology 

7 SEC. 4201. NATIONAL INSTITUTE FOR STANDARDS AND 

8 TECHNOLOGY TESTING. 

9 (a) PILOT TESTING OF STANDARDS AND IMPLEMEN10 TATION SPECIFICATIONS.—In coordination with the HIT 

11 Standards Committee established under section 3003 of 

12 the Public Health Service Act, as added by section 4101, 

13 with respect to the development of standards and imple14 mentation specifications under such section, the Director 

15 of the National Institute for Standards and Technology 

16 shall test such standards and implementation specifica17 tions, as appropriate, in order to assure the efficient im18 plementation and use of such standards and implementa19 tion specifications. 

20 (b) VOLUNTARY TESTING PROGRAM.—In coordina21 tion with the HIT Standards Committee established under 

22 section 3003 of the Public Health Service Act, as added 

23 by section 4101, with respect to the development of stand24 ards and implementation specifications under such sec25 tion, the Director of the National Institute of Standards 


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1 and Technology shall support the establishment of a con2 formance testing infrastructure, including the develop3 ment of technical test beds. The development of this con4 formance testing infrastructure may include a program to 

5 accredit independent, non-Federal laboratories to perform 

6 testing. 

7 SEC. 4202. RESEARCH AND DEVELOPMENT PROGRAMS. 

8 (a) HEALTH CARE INFORMATION ENTERPRISE INTE9 GRATION RESEARCH CENTERS.— 

10 (1) IN GENERAL.—The Director of the National 

11 Institute of Standards and Technology, in consulta12 tion with the Director of the National Science Foun13 dation and other appropriate Federal agencies, shall 

14 establish a program of assistance to institutions of 

15 higher education (or consortia thereof which may in16 clude nonprofit entities and Federal Government 

17 laboratories) to establish multidisciplinary Centers 

18 for Health Care Information Enterprise Integration. 

19 (2) REVIEW; COMPETITION.—Grants shall be 

20 awarded under this subsection on a merit-reviewed, 

21 competitive basis. 

22 (3) PURPOSE.—The purposes of the Centers de23 scribed in paragraph (1) shall be— 

24 (A) to generate innovative approaches to 

25 health care information enterprise integration 


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1 by conducting cutting-edge, multidisciplinary 

2 research on the systems challenges to health 

3 care delivery; and 

4 (B) the development and use of health in5 formation technologies and other complemen6 tary fields. 

7 (4) RESEARCH AREAS.—Research areas may in8 clude— 

9 (A) interfaces between human information 

10 and communications technology systems; 

11 (B) voice-recognition systems; 

12 (C) software that improves interoperability 

13 and connectivity among health information sys14 tems; 

15 (D) software dependability in systems crit16 ical to health care delivery; 

17 (E) measurement of the impact of informa18 tion technologies on the quality and productivity 

19 of health care; 

20 (F) health information enterprise manage21 ment; 

22 (G) health information technology security 

23 and integrity; and 

24 (H) relevant health information technology 

25 to reduce medical errors. 


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1 (5) APPLICATIONS.—An institution of higher 

2 education (or a consortium thereof) seeking funding 

3 under this subsection shall submit an application to 

4 the Director of the National Institute of Standards 

5 and Technology at such time, in such manner, and 

6 containing such information as the Director may re7 quire. The application shall include, at a minimum, 

8 a description of— 

9 (A) the research projects that will be un10 dertaken by the Center established pursuant to 

11 assistance under paragraph (1) and the respec12 tive contributions of the participating entities; 

13 (B) how the Center will promote active col14 laboration among scientists and engineers from 

15 different disciplines, such as information tech16 nology, biologic sciences, management, social 

17 sciences, and other appropriate disciplines; 

18 (C) technology transfer activities to dem19 onstrate and diffuse the research results, tech20 nologies, and knowledge; and 

21 (D) how the Center will contribute to the 

22 education and training of researchers and other 

23 professionals in fields relevant to health infor24 mation enterprise integration. 


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1 (b) NATIONAL INFORMATION TECHNOLOGY RE2 SEARCH AND DEVELOPMENT PROGRAM.—The National 

3 High-Performance Computing Program established by 

4 section 101 of the High-Performance Computing Act of 

5 1991 (15 U.S.C. 5511) shall coordinate Federal research 

6 and development programs related to the development and 

7 deployment of health information technology, including ac8 tivities related to— 

9 (1) computer infrastructure; 

10 (2) data security; 

11 (3) development of large-scale, distributed, reli12 able computing systems; 

13 (4) wired, wireless, and hybrid high-speed net14 working; 

15 (5) development of software and software-inten16 sive systems; 

17 (6) human-computer interaction and informa18 tion management technologies; and 

19 (7) the social and economic implications of in20 formation technology. 


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1 Subtitle C—Incentives for the Use 

2 of Health Information Technology 

3 PART I—GRANTS AND LOANS FUNDING 

4 SEC. 4301. GRANT, LOAN, AND DEMONSTRATION PRO5 GRAMS. 

6 Title XXX of the Public Health Service Act, as added 

7 by section 4101, is amended by adding at the end the fol8 lowing new subtitle: 

9 ‘‘Subtitle B—Incentives for the Use 

10 of Health Information Technology 

11 ‘‘SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE 

12 HEALTH INFORMATION TECHNOLOGY INFRA13 STRUCTURE. 

14 ‘‘(a) IN GENERAL.—The Secretary shall, using 

15 amounts appropriated under section 3018, invest in the 

16 infrastructure necessary to allow for and promote the elec17 tronic exchange and use of health information for each 

18 individual in the United States consistent with the goals 

19 outlined in the strategic plan developed by the National 

20 Coordinator (and as available) under section 3001. To the 

21 greatest extent practicable, the Secretary shall ensure that 

22 any funds so appropriated shall be used for the acquisition 

23 of health information technology that meets standards and 

24 certification criteria adopted before the date of the enact25 ment of this title until such date as the standards are 


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1 adopted under section 3004. The Secretary shall invest 

2 funds through the different agencies with expertise in such 

3 goals, such as the Office of the National Coordinator for 

4 Health Information Technology, the Health Resources and 

5 Services Administration, the Agency for Healthcare Re6 search and Quality, the Centers of Medicare & Medicaid 

7 Services, the Centers for Disease Control and Prevention, 

8 and the Indian Health Service to support the following: 

9 ‘‘(1) Health information technology architecture 

10 that will support the nationwide electronic exchange 

11 and use of health information in a secure, private, 

12 and accurate manner, including connecting health 

13 information exchanges, and which may include up14 dating and implementing the infrastructure nec15 essary within different agencies of the Department 

16 of Health and Human Services to support the elec17 tronic use and exchange of health information. 

18 ‘‘(2) Development and adoption of appropriate 

19 certified electronic health records for categories of 

20 providers, as defined in section 3000, not eligible for 

21 support under title XVIII or XIX of the Social Secu22 rity Act for the adoption of such records. 

23 ‘‘(3) Training on and dissemination of informa24 tion on best practices to integrate health information 

25 technology, including electronic health records, into 


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1 a provider’s delivery of care, consistent with best 

2 practices learned from the Health Information Tech3 nology Research Center developed under section 

4 3012(b), including community health centers receiv5 ing assistance under section 330, covered entities 

6 under section 340B, and providers participating in 

7 one or more of the programs under titles XVIII, 

8 XIX, and XXI of the Social Security Act (relating 

9 to Medicare, Medicaid, and the State Children’s 

10 Health Insurance Program). 

11 ‘‘(4) Infrastructure and tools for the promotion 

12 of telemedicine, including coordination among Fed13 eral agencies in the promotion of telemedicine. 

14 ‘‘(5) Promotion of the interoperability of clinical 

15 data repositories or registries. 

16 ‘‘(6) Promotion of technologies and best prac17 tices that enhance the protection of health informa18 tion by all holders of individually identifiable health 

19 information. 

20 ‘‘(7) Improvement and expansion of the use of 

21 health information technology by public health de22 partments. 

23 ‘‘(8) Provision of $300 million to support re24 gional or sub-national efforts towards health infor25 mation exchange. 


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1 ‘‘(b) COORDINATION.—The Secretary shall ensure 

2 funds under this section are used in a coordinated manner 

3 with other health information promotion activities. 

4 ‘‘(c) ADDITIONAL USE OF FUNDS.—In addition to 

5 using funds as provided in subsection (a), the Secretary 

6 may use amounts appropriated under section 3018 to 

7 carry out health information technology activities that are 

8 provided for under laws in effect on the date of the enact9 ment of this title. 

10 ‘‘SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLE11 MENTATION ASSISTANCE. 

12 ‘‘(a) HEALTH INFORMATION TECHNOLOGY EXTEN13 SION PROGRAM.—To assist health care providers to adopt, 

14 implement, and effectively use certified EHR technology 

15 that allows for the electronic exchange and use of health 

16 information, the Secretary, acting through the Office of 

17 the National Coordinator, shall establish a health informa18 tion technology extension program to provide health infor19 mation technology assistance services to be carried out 

20 through the Department of Health and Human Services. 

21 The National Coordinator shall consult with other Federal 

22 agencies with demonstrated experience and expertise in in23 formation technology services, such as the National Insti24 tute of Standards and Technology, in developing and im25 plementing this program. 


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1 ‘‘(b) HEALTH INFORMATION TECHNOLOGY RE2 SEARCH CENTER.— 

3 ‘‘(1) IN GENERAL.—The Secretary shall create 

4 a Health Information Technology Research Center 

5 (in this section referred to as the ‘Center’) to pro6 vide technical assistance and develop or recognize 

7 best practices to support and accelerate efforts to 

8 adopt, implement, and effectively utilize health infor9 mation technology that allows for the electronic ex10 change and use of information in compliance with 

11 standards, implementation specifications, and certifi12 cation criteria adopted under section 3004. 

13 ‘‘(2) INPUT.—The Center shall incorporate 

14 input from— 

15 ‘‘(A) other Federal agencies with dem16 onstrated experience and expertise in informa17 tion technology services such as the National 

18 Institute of Standards and Technology; 

19 ‘‘(B) users of health information tech20 nology, such as providers and their support and 

21 clerical staff and others involved in the care and 

22 care coordination of patients, from the health 

23 care and health information technology indus24 try; and 

25 ‘‘(C) others as appropriate. 


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1 ‘‘(3) PURPOSES.—The purposes of the Center 

2 are to— 

3 ‘‘(A) provide a forum for the exchange of 

4 knowledge and experience; 

5 ‘‘(B) accelerate the transfer of lessons 

6 learned from existing public and private sector 

7 initiatives, including those currently receiving 

8 Federal financial support; 

9 ‘‘(C) assemble, analyze, and widely dis10 seminate evidence and experience related to the 

11 adoption, implementation, and effective use of 

12 health information technology that allows for 

13 the electronic exchange and use of information 

14 including through the regional centers described 

15 in subsection (c); 

16 ‘‘(D) provide technical assistance for the 

17 establishment and evaluation of regional and 

18 local health information networks to facilitate 

19 the electronic exchange of information across 

20 health care settings and improve the quality of 

21 health care; 

22 ‘‘(E) provide technical assistance for the 

23 development and dissemination of solutions to 

24 barriers to the exchange of electronic health in25 formation; and 


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1 ‘‘(F) learn about effective strategies to 

2 adopt and utilize health information technology 

3 in medically underserved communities. 

4 ‘‘(c) HEALTH INFORMATION TECHNOLOGY RE5 GIONAL EXTENSION CENTERS.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall provide 

7 assistance for the creation and support of regional 

8 centers (in this subsection referred to as ‘regional 

9 centers’) to provide technical assistance and dissemi10 nate best practices and other information learned 

11 from the Center to support and accelerate efforts to 

12 adopt, implement, and effectively utilize health infor13 mation technology that allows for the electronic ex14 change and use of information in compliance with 

15 standards, implementation specifications, and certifi16 cation criteria adopted under section 3004. Activities 

17 conducted under this subsection shall be consistent 

18 with the strategic plan developed by the National 

19 Coordinator, (and, as available) under section 3001. 

20 ‘‘(2) AFFILIATION.—Regional centers shall be 

21 affiliated with any United States-based nonprofit in22 stitution or organization, or group thereof, that ap23 plies and is awarded financial assistance under this 

24 section. Individual awards shall be decided on the 

25 basis of merit. 


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1 ‘‘(3) OBJECTIVE.—The objective of the regional 

2 centers is to enhance and promote the adoption of 

3 health information technology through— 

4 ‘‘(A) assistance with the implementation, 

5 effective use, upgrading, and ongoing mainte6 nance of health information technology, includ7 ing electronic health records, to healthcare pro8 viders nationwide; 

9 ‘‘(B) broad participation of individuals 

10 from industry, universities, and State govern11 ments; 

12 ‘‘(C) active dissemination of best practices 

13 and research on the implementation, effective 

14 use, upgrading, and ongoing maintenance of 

15 health information technology, including elec16 tronic health records, to health care providers 

17 in order to improve the quality of healthcare 

18 and protect the privacy and security of health 

19 information; 

20 ‘‘(D) participation, to the extent prac21 ticable, in health information exchanges; 

22 ‘‘(E) utilization, when appropriate, of the 

23 expertise and capability that exists in Federal 

24 agencies other than the Department; and 


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1 ‘‘(F) integration of health information 

2 technology, including electronic health records, 

3 into the initial and ongoing training of health 

4 professionals and others in the healthcare in5 dustry that would be instrumental to improving 

6 the quality of healthcare through the smooth 

7 and accurate electronic use and exchange of 

8 health information. 

9 ‘‘(4) REGIONAL ASSISTANCE.—Each regional 

10 center shall aim to provide assistance and education 

11 to all providers in a region, but shall prioritize any 

12 direct assistance first to the following: 

13 ‘‘(A) Public or not-for-profit hospitals or 

14 critical access hospitals. 

15 ‘‘(B) Federally qualified health centers (as 

16 defined in section 1861(aa)(4) of the Social Se17 curity Act). 

18 ‘‘(C) Entities that are located in rural and 

19 other areas that serve uninsured, underinsured, 

20 and medically underserved individuals (regard21 less of whether such area is urban or rural). 

22 ‘‘(D) Individual or small group practices 

23 (or a consortium thereof) that are primarily fo24 cused on primary care. 


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1 ‘‘(5) FINANCIAL SUPPORT.—The Secretary may 

2 provide financial support to any regional center cre3 ated under this subsection for a period not to exceed 

4 four years. The Secretary may not provide more 

5 than 50 percent of the capital and annual operating 

6 and maintenance funds required to create and main7 tain such a center, except in an instance of national 

8 economic conditions which would render this cost9 share requirement detrimental to the program and 

10 upon notification to Congress as to the justification 

11 to waive the cost-share requirement. 

12 ‘‘(6) NOTICE OF PROGRAM DESCRIPTION AND

13 AVAILABILITY OF FUNDS.—The Secretary shall pub14 lish in the Federal Register, not later than 90 days 

15 after the date of the enactment of this title, a draft 

16 description of the program for establishing regional 

17 centers under this subsection. Such description shall 

18 include the following: 

19 ‘‘(A) A detailed explanation of the program 

20 and the programs goals. 

21 ‘‘(B) Procedures to be followed by the ap22 plicants. 

23 ‘‘(C) Criteria for determining qualified ap24 plicants. 


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1 ‘‘(D) Maximum support levels expected to 

2 be available to centers under the program. 

3 ‘‘(7) APPLICATION REVIEW.—The Secretary 

4 shall subject each application under this subsection 

5 to merit review. In making a decision whether to ap6 prove such application and provide financial support, 

7 the Secretary shall consider at a minimum the mer8 its of the application, including those portions of the 

9 application regarding— 

10 ‘‘(A) the ability of the applicant to provide 

11 assistance under this subsection and utilization 

12 of health information technology appropriate to 

13 the needs of particular categories of health care 

14 providers; 

15 ‘‘(B) the types of service to be provided to 

16 health care providers; 

17 ‘‘(C) geographical diversity and extent of 

18 service area; and 

19 ‘‘(D) the percentage of funding and 

20 amount of in-kind commitment from other 

21 sources. 

22 ‘‘(8) BIENNIAL EVALUATION.—Each regional 

23 center which receives financial assistance under this 

24 subsection shall be evaluated biennially by an evalua25 tion panel appointed by the Secretary. Each evaluaVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00488 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 tion panel shall be composed of private experts, none 

2 of whom shall be connected with the center involved, 

3 and of Federal officials. Each evaluation panel shall 

4 measure the involved center’s performance against 

5 the objective specified in paragraph (3). The Sec6 retary shall not continue to provide funding to a re7 gional center unless its evaluation is overall positive. 

8 ‘‘(9) CONTINUING SUPPORT.—After the second 

9 year of assistance under this subsection, a regional 

10 center may receive additional support under this 

11 subsection if it has received positive evaluations and 

12 a finding by the Secretary that continuation of Fed13 eral funding to the center was in the best interest 

14 of provision of health information technology exten15 sion services. 

16 ‘‘SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFOR17 MATION TECHNOLOGY. 

18 ‘‘(a) IN GENERAL.—The Secretary, acting through 

19 the National Coordinator, shall establish a program in ac20 cordance with this section to facilitate and expand the 

21 electronic movement and use of health information among 

22 organizations according to nationally recognized stand23 ards. 

24 ‘‘(b) PLANNING GRANTS.—The Secretary may award 

25 a grant to a State or qualified State-designated entity (as 


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1 described in subsection (f)) that submits an application 

2 to the Secretary at such time, in such manner, and con3 taining such information as the Secretary may specify, for 

4 the purpose of planning activities described in subsection 

5 (d). 

6 ‘‘(c) IMPLEMENTATION GRANTS.—The Secretary 

7 may award a grant to a State or qualified State designated 

8 entity that— 

9 ‘‘(1) has submitted, and the Secretary has ap10 proved, a plan described in subsection (e) (regardless 

11 of whether such plan was prepared using amounts 

12 awarded under subsection (b); and 

13 ‘‘(2) submits an application at such time, in 

14 such manner, and containing such information as 

15 the Secretary may specify. 

16 ‘‘(d) USE OF FUNDS.—Amounts received under a 

17 grant under subsection (c) shall be used to conduct activi18 ties to facilitate and expand the electronic movement and 

19 use of health information among organizations according 

20 to nationally recognized standards through activities that 

21 include— 

22 ‘‘(1) enhancing broad and varied participation 

23 in the authorized and secure nationwide electronic 

24 use and exchange of health information; 


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1 ‘‘(2) identifying State or local resources avail2 able towards a nationwide effort to promote health 

3 information technology; 

4 ‘‘(3) complementing other Federal grants, pro5 grams, and efforts towards the promotion of health 

6 information technology; 

7 ‘‘(4) providing technical assistance for the de8 velopment and dissemination of solutions to barriers 

9 to the exchange of electronic health information; 

10 ‘‘(5) promoting effective strategies to adopt and 

11 utilize health information technology in medically 

12 underserved communities; 

13 ‘‘(6) assisting patients in utilizing health infor14 mation technology; 

15 ‘‘(7) encouraging clinicians to work with Health 

16 Information Technology Regional Extension Centers 

17 as described in section 3012, to the extent they are 

18 available and valuable; 

19 ‘‘(8) supporting public health agencies’ author20 ized use of and access to electronic health informa21 tion; 

22 ‘‘(9) promoting the use of electronic health 

23 records for quality improvement including through 

24 quality measures reporting; and 


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1 ‘‘(10) such other activities as the Secretary may 

2 specify. 

3 ‘‘(e) PLAN.— 

4 ‘‘(1) IN GENERAL.—A plan described in this 

5 subsection is a plan that describes the activities to 

6 be carried out by a State or by the qualified State7 designated entity within such State to facilitate and 

8 expand the electronic movement and use of health 

9 information among organizations according to na10 tionally recognized standards and implementation 

11 specifications. 

12 ‘‘(2) REQUIRED ELEMENTS.—A plan described 

13 in paragraph (1) shall— 

14 ‘‘(A) be pursued in the public interest; 

15 ‘‘(B) be consistent with the strategic plan 

16 developed by the National Coordinator, (and, as 

17 available) under section 3001; 

18 ‘‘(C) include a description of the ways the 

19 State or qualified State-designated entity will 

20 carry out the activities described in subsection 

21 (b); and 

22 ‘‘(D) contain such elements as the Sec23 retary may require. 


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1 ‘‘(f) QUALIFIED STATE-DESIGNATED ENTITY.—For 

2 purposes of this section, to be a qualified State-designated 

3 entity, with respect to a State, an entity shall— 

4 ‘‘(1) be designated by the State as eligible to 

5 receive awards under this section; 

6 ‘‘(2) be a not-for-profit entity with broad stake7 holder representation on its governing board; 

8 ‘‘(3) demonstrate that one of its principal goals 

9 is to use information technology to improve health 

10 care quality and efficiency through the authorized 

11 and secure electronic exchange and use of health in12 formation; 

13 ‘‘(4) adopt nondiscrimination and conflict of in14 terest policies that demonstrate a commitment to 

15 open, fair, and nondiscriminatory participation by 

16 stakeholders; and 

17 ‘‘(5) conform to such other requirements as the 

18 Secretary may establish. 

19 ‘‘(g) REQUIRED CONSULTATION.—In carrying out 

20 activities described in subsections (b) and (c), a State or 

21 qualified State-designated entity shall consult with and 

22 consider the recommendations of— 

23 ‘‘(1) health care providers (including providers 

24 that provide services to low income and underserved 

25 populations); 


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1 ‘‘(2) health plans; 

2 ‘‘(3) patient or consumer organizations that 

3 represent the population to be served; 

4 ‘‘(4) health information technology vendors; 

5 ‘‘(5) health care purchasers and employers; 

6 ‘‘(6) public health agencies; 

7 ‘‘(7) health professions schools, universities and 

8 colleges; 

9 ‘‘(8) clinical researchers; 

10 ‘‘(9) other users of health information tech11 nology such as the support and clerical staff of pro12 viders and others involved in the care and care co13 ordination of patients; and 

14 ‘‘(10) such other entities, as may be determined 

15 appropriate by the Secretary. 

16 ‘‘(h) CONTINUOUS IMPROVEMENT.—The Secretary 

17 shall annually evaluate the activities conducted under this 

18 section and shall, in awarding grants under this section, 

19 implement the lessons learned from such evaluation in a 

20 manner so that awards made subsequent to each such 

21 evaluation are made in a manner that, in the determina22 tion of the Secretary, will lead towards the greatest im23 provement in quality of care, decrease in costs, and the 

24 most effective authorized and secure electronic exchange 

25 of health information. 


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1 ‘‘(i) REQUIRED MATCH.— 

2 ‘‘(1) IN GENERAL.—For a fiscal year (begin3 ning with fiscal year 2011), the Secretary may not 

4 make a grant under this section to a State unless 

5 the State agrees to make available non-Federal con6 tributions (which may include in-kind contributions) 

7 toward the costs of a grant awarded under sub8 section (c) in an amount equal to— 

9 ‘‘(A) for fiscal year 2011, not less than $1 

10 for each $10 of Federal funds provided under 

11 the grant; 

12 ‘‘(B) for fiscal year 2012, not less than $1 

13 for each $7 of Federal funds provided under 

14 the grant; and 

15 ‘‘(C) for fiscal year 2013 and each subse16 quent fiscal year, not less than $1 for each $3 

17 of Federal funds provided under the grant. 

18 ‘‘(2) AUTHORITY TO REQUIRE STATE MATCH

19 FOR FISCAL YEARS BEFORE FISCAL YEAR 2011.—For 

20 any fiscal year during the grant program under this 

21 section before fiscal year 2011, the Secretary may 

22 determine the extent to which there shall be required 

23 a non-Federal contribution from a State receiving a 

24 grant under this section. 


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1 ‘‘SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN 

2 TRIBES FOR THE DEVELOPMENT OF LOAN 

3 PROGRAMS TO FACILITATE THE WIDE4 SPREAD ADOPTION OF CERTIFIED EHR TECH5 NOLOGY. 

6 ‘‘(a) IN GENERAL.—The National Coordinator may 

7 award competitive grants to eligible entities for the estab8 lishment of programs for loans to health care providers 

9 to conduct the activities described in subsection (e). 

10 ‘‘(b) ELIGIBLE ENTITY DEFINED.—For purposes of 

11 this subsection, the term ‘eligible entity’ means a State 

12 or Indian tribe (as defined in the Indian Self-Determina13 tion and Education Assistance Act) that— 

14 ‘‘(1) submits to the National Coordinator an 

15 application at such time, in such manner, and con16 taining such information as the National Coordi17 nator may require; 

18 ‘‘(2) submits to the National Coordinator a 

19 strategic plan in accordance with subsection (d) and 

20 provides to the National Coordinator assurances that 

21 the entity will update such plan annually in accord22 ance with such subsection; 

23 ‘‘(3) provides assurances to the National Coor24 dinator that the entity will establish a Loan Fund 

25 in accordance with subsection (c); 


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1 ‘‘(4) provides assurances to the National Coor2 dinator that the entity will not provide a loan from 

3 the Loan Fund to a health care provider unless the 

4 provider agrees to— 

5 ‘‘(A) submit reports on quality measures 

6 adopted by the Federal Government (by not 

7 later than 90 days after the date on which such 

8 measures are adopted), to— 

9 ‘‘(i) the Administrator of the Centers 

10 for Medicare & Medicaid Services (or his 

11 or her designee), in the case of an entity 

12 participating in the Medicare program 

13 under title XVIII of the Social Security 

14 Act or the Medicaid program under title 

15 XIX of such Act; or 

16 ‘‘(ii) the Secretary in the case of other 

17 entities; 

18 ‘‘(B) demonstrate to the satisfaction of the 

19 Secretary (through criteria established by the 

20 Secretary) that any certified EHR technology 

21 purchased, improved, or otherwise financially 

22 supported under a loan under this section is 

23 used to exchange health information in a man24 ner that, in accordance with law and standards 

25 (as adopted under section 3004) applicable to 


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1 the exchange of information, improves the qual2 ity of health care, such as promoting care co3 ordination; and 

4 ‘‘(C) comply with such other requirements 

5 as the entity or the Secretary may require; 

6 ‘‘(D) include a plan on how health care 

7 providers involved intend to maintain and sup8 port the certified EHR technology over time; 

9 ‘‘(E) include a plan on how the health care 

10 providers involved intend to maintain and sup11 port the certified EHR technology that would 

12 be purchased with such loan, including the type 

13 of resources expected to be involved and any 

14 such other information as the State or Indian 

15 Tribe, respectively, may require; and 

16 ‘‘(5) agrees to provide matching funds in ac17 cordance with subsection (h). 

18 ‘‘(c) ESTABLISHMENT OF FUND.—For purposes of 

19 subsection (b)(3), an eligible entity shall establish a cer20 tified EHR technology loan fund (referred to in this sub21 section as a ‘Loan Fund’) and comply with the other re22 quirements contained in this section. A grant to an eligible 

23 entity under this section shall be deposited in the Loan 

24 Fund established by the eligible entity. No funds author25 ized by other provisions of this title to be used for other 


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1 purposes specified in this title shall be deposited in any 

2 Loan Fund. 

3 ‘‘(d) STRATEGIC PLAN.— 

4 ‘‘(1) IN GENERAL.—For purposes of subsection 

5 (b)(2), a strategic plan of an eligible entity under 

6 this subsection shall identify the intended uses of 

7 amounts available to the Loan Fund of such entity. 

8 ‘‘(2) CONTENTS.—A strategic plan under para9 graph (1), with respect to a Loan Fund of an eligi10 ble entity, shall include for a year the following: 

11 ‘‘(A) A list of the projects to be assisted 

12 through the Loan Fund during such year. 

13 ‘‘(B) A description of the criteria and 

14 methods established for the distribution of 

15 funds from the Loan Fund during the year. 

16 ‘‘(C) A description of the financial status 

17 of the Loan Fund as of the date of submission 

18 of the plan. 

19 ‘‘(D) The short-term and long-term goals 

20 of the Loan Fund. 

21 ‘‘(e) USE OF FUNDS.—Amounts deposited in a Loan 

22 Fund, including loan repayments and interest earned on 

23 such amounts, shall be used only for awarding loans or 

24 loan guarantees, making reimbursements described in sub25 section (g)(4)(A), or as a source of reserve and security 


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1 for leveraged loans, the proceeds of which are deposited 

2 in the Loan Fund established under subsection (c). Loans 

3 under this section may be used by a health care provider 

4 to— 

5 ‘‘(1) facilitate the purchase of certified EHR 

6 technology; 

7 ‘‘(2) enhance the utilization of certified EHR 

8 technology; 

9 ‘‘(3) train personnel in the use of such tech10 nology; or 

11 ‘‘(4) improve the secure electronic exchange of 

12 health information. 

13 ‘‘(f) TYPES OF ASSISTANCE.—Except as otherwise 

14 limited by applicable State law, amounts deposited into a 

15 Loan Fund under this section may only be used for the 

16 following: 

17 ‘‘(1) To award loans that comply with the fol18 lowing: 

19 ‘‘(A) The interest rate for each loan shall 

20 not exceed the market interest rate. 

21 ‘‘(B) The principal and interest payments 

22 on each loan shall commence not later than 1 

23 year after the date the loan was awarded, and 

24 each loan shall be fully amortized not later than 

25 10 years after the date of the loan. 


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1 ‘‘(C) The Loan Fund shall be credited with 

2 all payments of principal and interest on each 

3 loan awarded from the Loan Fund. 

4 ‘‘(2) To guarantee, or purchase insurance for, 

5 a local obligation (all of the proceeds of which fi6 nance a project eligible for assistance under this 

7 subsection) if the guarantee or purchase would im8 prove credit market access or reduce the interest 

9 rate applicable to the obligation involved. 

10 ‘‘(3) As a source of revenue or security for the 

11 payment of principal and interest on revenue or gen12 eral obligation bonds issued by the eligible entity if 

13 the proceeds of the sale of the bonds will be depos14 ited into the Loan Fund. 

15 ‘‘(4) To earn interest on the amounts deposited 

16 into the Loan Fund. 

17 ‘‘(5) To make reimbursements described in sub18 section (g)(4)(A). 

19 ‘‘(g) ADMINISTRATION OF LOAN FUNDS.— 

20 ‘‘(1) COMBINED FINANCIAL ADMINISTRATION.— 

21 An eligible entity may (as a convenience and to 

22 avoid unnecessary administrative costs) combine, in 

23 accordance with applicable State law, the financial 

24 administration of a Loan Fund established under 

25 this subsection with the financial administration of 


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1 any other revolving fund established by the entity if 

2 otherwise not prohibited by the law under which the 

3 Loan Fund was established. 

4 ‘‘(2) COST OF ADMINISTERING FUND.—Each el5 igible entity may annually use not to exceed 4 per6 cent of the funds provided to the entity under a 

7 grant under this section to pay the reasonable costs 

8 of the administration of the programs under this 

9 section, including the recovery of reasonable costs 

10 expended to establish a Loan Fund which are in11 curred after the date of the enactment of this title. 

12 ‘‘(3) GUIDANCE AND REGULATIONS.—The Na13 tional Coordinator shall publish guidance and pro14 mulgate regulations as may be necessary to carry 

15 out the provisions of this section, including— 

16 ‘‘(A) provisions to ensure that each eligible 

17 entity commits and expends funds allotted to 

18 the entity under this section as efficiently as 

19 possible in accordance with this title and appli20 cable State laws; and 

21 ‘‘(B) guidance to prevent waste, fraud, and 

22 abuse. 

23 ‘‘(4) PRIVATE SECTOR CONTRIBUTIONS.— 

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1 tions from private sector entities, except that 

2 such entities may not specify the recipient or 

3 recipients of any loan issued under this sub4 section. An eligible entity may agree to reim5 burse a private sector entity for any contribu6 tion made under this subparagraph, except that 

7 the amount of such reimbursement may not be 

8 greater than the principal amount of the con9 tribution made. 

10 ‘‘(B) AVAILABILITY OF INFORMATION.— 

11 An eligible entity shall make publicly available 

12 the identity of, and amount contributed by, any 

13 private sector entity under subparagraph (A) 

14 and may issue letters of commendation or make 

15 other awards (that have no financial value) to 

16 any such entity. 

17 ‘‘(h) MATCHING REQUIREMENTS.— 

18 ‘‘(1) IN GENERAL.—The National Coordinator 

19 may not make a grant under subsection (a) to an el20 igible entity unless the entity agrees to make avail21 able (directly or through donations from public or 

22 private entities) non-Federal contributions in cash to 

23 the costs of carrying out the activities for which the 

24 grant is awarded in an amount equal to not less 


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1 than $1 for each $5 of Federal funds provided under 

2 the grant. 

3 ‘‘(2) DETERMINATION OF AMOUNT OF NON4 FEDERAL CONTRIBUTION.—In determining the 

5 amount of non-Federal contributions that an eligible 

6 entity has provided pursuant to subparagraph (A), 

7 the National Coordinator may not include any 

8 amounts provided to the entity by the Federal Gov9 ernment. 

10 ‘‘(i) EFFECTIVE DATE.—The Secretary may not 

11 make an award under this section prior to January 1, 

12 2010. 

13 ‘‘SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE IN14 FORMATION TECHNOLOGY INTO CLINICAL 

15 EDUCATION. 

16 ‘‘(a) IN GENERAL.—The Secretary may award grants 

17 under this section to carry out demonstration projects to 

18 develop academic curricula integrating certified EHR 

19 technology in the clinical education of health professionals. 

20 Such awards shall be made on a competitive basis and 

21 pursuant to peer review. 

22 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant 

23 under subsection (a), an entity shall— 


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1 ‘‘(1) submit to the Secretary an application at 

2 such time, in such manner, and containing such in3 formation as the Secretary may require; 

4 ‘‘(2) submit to the Secretary a strategic plan 

5 for integrating certified EHR technology in the clin6 ical education of health professionals to reduce med7 ical errors and enhance health care quality; 

8 ‘‘(3) be— 

9 ‘‘(A) a school of medicine, osteopathic 

10 medicine, dentistry, or pharmacy, a graduate 

11 program in behavioral or mental health, or any 

12 other graduate health professions school; 

13 ‘‘(B) a graduate school of nursing or phy14 sician assistant studies; 

15 ‘‘(C) a consortium of two or more schools 

16 described in subparagraph (A) or (B); or 

17 ‘‘(D) an institution with a graduate med18 ical education program in medicine, osteopathic 

19 medicine, dentistry, pharmacy, nursing, or phy20 sician assistance studies; 

21 ‘‘(4) provide for the collection of data regarding 

22 the effectiveness of the demonstration project to be 

23 funded under the grant in improving the safety of 

24 patients, the efficiency of health care delivery, and 

25 in increasing the likelihood that graduates of the 


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1 grantee will adopt and incorporate certified EHR 

2 technology, in the delivery of health care services; 

3 and 

4 ‘‘(5) provide matching funds in accordance with 

5 subsection (d). 

6 ‘‘(c) USE OF FUNDS.— 

7 ‘‘(1) IN GENERAL.—With respect to a grant 

8 under subsection (a), an eligible entity shall— 

9 ‘‘(A) use grant funds in collaboration with 

10 2 or more disciplines; and 

11 ‘‘(B) use grant funds to integrate certified 

12 EHR technology into community-based clinical 

13 education. 

14 ‘‘(2) LIMITATION.—An eligible entity shall not 

15 use amounts received under a grant under sub16 section (a) to purchase hardware, software, or serv17 ices. 

18 ‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 

19 provide more than 50 percent of the costs of any activity 

20 for which assistance is provided under subsection (a), ex21 cept in an instance of national economic conditions which 

22 would render the cost-share requirement under this sub23 section detrimental to the program and upon notification 

24 to Congress as to the justification to waive the cost-share 

25 requirement. 


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1 ‘‘(e) EVALUATION.—The Secretary shall take such 

2 action as may be necessary to evaluate the projects funded 

3 under this section and publish, make available, and dis4 seminate the results of such evaluations on as wide a basis 

5 as is practicable. 

6 ‘‘(f) REPORTS.—Not later than 1 year after the date 

7 of enactment of this title, and annually thereafter, the Sec8 retary shall submit to the Committee on Health, Edu9 cation, Labor, and Pensions and the Committee on Fi10 nance of the Senate, and the Committee on Energy and 

11 Commerce of the House of Representatives a report 

12 that— 

13 ‘‘(1) describes the specific projects established 

14 under this section; and 

15 ‘‘(2) contains recommendations for Congress 

16 based on the evaluation conducted under subsection 

17 (e). 

18 ‘‘SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS 

19 ON HEALTH CARE. 

20 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

21 with the Director of the National Science Foundation, 

22 shall provide assistance to institutions of higher education 

23 (or consortia thereof) to establish or expand medical 

24 health informatics education programs, including certifi25 cation, undergraduate, and masters degree programs, for 


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1 both health care and information technology students to 

2 ensure the rapid and effective utilization and development 

3 of health information technologies (in the United States 

4 health care infrastructure). 

5 ‘‘(b) ACTIVITIES.—Activities for which assistance 

6 may be provided under subsection (a) may include the fol7 lowing: 

8 ‘‘(1) Developing and revising curricula in med9 ical health informatics and related disciplines. 

10 ‘‘(2) Recruiting and retaining students to the 

11 program involved. 

12 ‘‘(3) Acquiring equipment necessary for student 

13 instruction in these programs, including the installa14 tion of testbed networks for student use. 

15 ‘‘(4) Establishing or enhancing bridge programs 

16 in the health informatics fields between community 

17 colleges and universities. 

18 ‘‘(c) PRIORITY.—In providing assistance under sub19 section (a), the Secretary shall give preference to the fol20 lowing: 

21 ‘‘(1) Existing education and training programs. 

22 ‘‘(2) Programs designed to be completed in less 

23 than six months. 

24 ‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 

25 provide more than 50 percent of the costs of any activity 


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1 for which assistance is provided under subsection (a), ex2 cept in an instance of national economic conditions which 

3 would render the cost-share requirement under this sub4 section detrimental to the program and upon notification 

5 to Congress as to the justification to waive the cost-share 

6 requirement. 

7 ‘‘SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS. 

8 ‘‘(a) REPORTS.—The Secretary may require that an 

9 entity receiving assistance under this subtitle shall submit 

10 to the Secretary, not later than the date that is 1 year 

11 after the date of receipt of such assistance, a report that 

12 includes— 

13 ‘‘(1) an analysis of the effectiveness of the ac14 tivities for which the entity receives such assistance, 

15 as compared to the goals for such activities; and 

16 ‘‘(2) an analysis of the impact of the project on 

17 health care quality and safety. 

18 ‘‘(b) REQUIREMENT TO IMPROVE QUALITY OF CARE

19 AND DECREASE IN COSTS.—The National Coordinator 

20 shall annually evaluate the activities conducted under this 

21 subtitle and shall, in awarding grants, implement the les22 sons learned from such evaluation in a manner so that 

23 awards made subsequent to each such evaluation are made 

24 in a manner that, in the determination of the National 


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1 Coordinator, will result in the greatest improvement in the 

2 quality and efficiency of health care. 

3 ‘‘SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS. 

4 ‘‘For the purposes of carrying out this subtitle, there 

5 is authorized to be appropriated such sums as may be nec6 essary for each of the fiscal years 2009 through 2013. 

7 Amounts so appropriated shall remain available until ex8 pended.’’. 

9 PART II—MEDICARE PROGRAM 

10 SEC. 4311. INCENTIVES FOR ELIGIBLE PROFESSIONALS. 

11 (a) INCENTIVE PAYMENTS.—Section 1848 of the So12 cial Security Act (42 U.S.C. 1395w–4) is amended by add13 ing at the end the following new subsection: 

14 ‘‘(o) INCENTIVES FOR ADOPTION AND MEANINGFUL

15 USE OF CERTIFIED EHR TECHNOLOGY.— 

16 ‘‘(1) INCENTIVE PAYMENTS.— 

17 ‘‘(A) IN GENERAL.—Subject to the suc18 ceeding subparagraphs of this paragraph, with 

19 respect to covered professional services fur20 nished by an eligible professional during a pay21 ment year (as defined in subparagraph (E)), if 

22 the eligible professional is a meaningful EHR 

23 user (as determined under paragraph (2)) for 

24 the reporting period with respect to such year, 

25 in addition to the amount otherwise paid under 


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1 this part, there also shall be paid to the eligible 

2 professional (or to an employer or facility in the 

3 cases described in clause (A) of section 

4 1842(b)(6)), from the Federal Supplementary 

5 Medical Insurance Trust Fund established 

6 under section 1841 an amount equal to 75 per7 cent of the Secretary’s estimate (based on 

8 claims submitted not later than 2 months after 

9 the end of the payment year) of the allowed 

10 charges under this part for all such covered 

11 professional services furnished by the eligible 

12 professional during such year. 

13 ‘‘(B) LIMITATIONS ON AMOUNTS OF IN14 CENTIVE PAYMENTS.— 

15 ‘‘(i) IN GENERAL.—In no case shall 

16 the amount of the incentive payment pro17 vided under this paragraph for an eligible 

18 professional for a payment year exceed the 

19 applicable amount specified under this sub20 paragraph with respect to such eligible 

21 professional and such year. 

22 ‘‘(ii) AMOUNT.—Subject to clause 

23 (iii), the applicable amount specified in this 

24 subparagraph for an eligible professional is 

25 as follows: 


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1 ‘‘(I) For the first payment year 

2 for such professional, $15,000. 

3 ‘‘(II) For the second payment 

4 year for such professional, $12,000. 

5 ‘‘(III) For the third payment 

6 year for such professional, $8,000. 

7 ‘‘(IV) For the fourth payment 

8 year for such professional, $4,000. 

9 ‘‘(V) For the fifth payment year 

10 for such professional, $2,000. 

11 ‘‘(VI) For any succeeding pay12 ment year for such professional, $0. 

13 ‘‘(iii) PHASE DOWN FOR ELIGIBLE

14 PROFESSIONALS FIRST ADOPTING EHR

15 AFTER 2013.—If the first payment year for 

16 an eligible professional is after 2013, then 

17 the amount specified in this subparagraph 

18 for a payment year for such professional is 

19 the same as the amount specified in clause 

20 (ii) for such payment year for an eligible 

21 professional whose first payment year is 

22 2013. If the first payment year for an eli23 gible professional is after 2015 then the 

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1 paragraph for such professional for such 

2 year and any subsequent year shall be $0. 

3 ‘‘(C) NON-APPLICATION TO HOSPITAL4 BASED ELIGIBLE PROFESSIONALS.— 

5 ‘‘(i) IN GENERAL.—No incentive pay6 ment may be made under this paragraph 

7 in the case of a hospital-based eligible pro8 fessional. 

9 ‘‘(ii) HOSPITAL-BASED ELIGIBLE PRO10 FESSIONAL.—For purposes of clause (i), 

11 the term ‘hospital-based eligible profes12 sional’ means, with respect to covered pro13 fessional services furnished by an eligible 

14 professional during the reporting period for 

15 a payment year, an eligible professional, 

16 such as a pathologist, anesthesiologist, or 

17 emergency physician, who furnishes sub18 stantially all of such services in a hospital 

19 setting (whether inpatient or outpatient) 

20 and through the use of the facilities and 

21 equipment, including computer equipment, 

22 of the hospital. 

23 ‘‘(D) PAYMENT.— 

24 ‘‘(i) FORM OF PAYMENT.—The pay25 ment under this paragraph may be in the 


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1 form of a single consolidated payment or 

2 in the form of such periodic installments 

3 as the Secretary may specify. 

4 ‘‘(ii) COORDINATION OF APPLICATION

5 OF LIMITATION FOR PROFESSIONALS IN

6 DIFFERENT PRACTICES.—In the case of an 

7 eligible professional furnishing covered pro8 fessional services in more than one practice 

9 (as specified by the Secretary), the Sec10 retary shall establish rules to coordinate 

11 the incentive payments, including the ap12 plication of the limitation on amounts of 

13 such incentive payments under this para14 graph, among such practices. 

15 ‘‘(iii) COORDINATION WITH MED16 ICAID.—The Secretary shall seek, to the 

17 maximum extent practicable, to avoid du18 plicative requirements from Federal and 

19 State Governments to demonstrate mean20 ingful use of certified EHR technology 

21 under this title and title XIX. The Sec22 retary may also adjust the reporting peri23 ods under such title and such subsections 

24 in order to carry out this clause. 

25 ‘‘(E) PAYMENT YEAR DEFINED.— 


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1 ‘‘(i) IN GENERAL.—For purposes of 

2 this subsection, the term ‘payment year’ 

3 means a year beginning with 2011. 

4 ‘‘(ii) FIRST, SECOND, ETC. PAYMENT

5 YEAR.—The term ‘first payment year’ 

6 means, with respect to covered professional 

7 services furnished by an eligible profes8 sional, the first year for which an incentive 

9 payment is made for such services under 

10 this subsection. The terms ‘second pay11 ment year’, ‘third payment year’, ‘fourth 

12 payment year’, and ‘fifth payment year’ 

13 mean, with respect to covered professional 

14 services furnished by such eligible profes15 sional, each successive year immediately 

16 following the first payment year for such 

17 professional. 

18 ‘‘(2) MEANINGFUL EHR USER.— 

19 ‘‘(A) IN GENERAL.—For purposes of para20 graph (1), an eligible professional shall be 

21 treated as a meaningful EHR user for a report22 ing period for a payment year (or, for purposes 

23 of subsection (a)(7), for a reporting period 

24 under such subsection for a year) if each of the 

25 following requirements is met: 


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1 ‘‘(i) MEANINGFUL USE OF CERTIFIED

2 EHR TECHNOLOGY.—The eligible profes3 sional demonstrates to the satisfaction of 

4 the Secretary, in accordance with subpara5 graph (C)(i), that during such period the 

6 professional is using certified EHR tech7 nology in a meaningful manner, which 

8 shall include the use of electronic pre9 scribing as determined to be appropriate 

10 by the Secretary. 

11 ‘‘(ii) INFORMATION EXCHANGE.—The 

12 eligible professional demonstrates to the 

13 satisfaction of the Secretary, in accordance 

14 with subparagraph (C)(i), that during such 

15 period such certified EHR technology is 

16 connected in a manner that provides, in 

17 accordance with law and standards appli18 cable to the exchange of information, for 

19 the electronic exchange of health informa20 tion to improve the quality of health care, 

21 such as promoting care coordination. 

22 ‘‘(iii) REPORTING ON MEASURES

23 USING EHR.—Subject to subparagraph 

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1 formation for such period, in a form and 

2 manner specified by the Secretary, on such 

3 clinical quality measures and such other 

4 measures as selected by the Secretary 

5 under subparagraph (B)(i). 

6 The Secretary may provide for the use of alter7 native means for meeting the requirements of 

8 clauses (i), (ii), and (iii) in the case of an eligi9 ble professional furnishing covered professional 

10 services in a group practice (as defined by the 

11 Secretary). The Secretary shall seek to improve 

12 the use of electronic health records and health 

13 care quality over time by requiring more strin14 gent measures of meaningful use selected under 

15 this paragraph. 

16 ‘‘(B) REPORTING ON MEASURES.— 

17 ‘‘(i) SELECTION.—The Secretary shall 

18 select measures for purposes of subpara19 graph (A)(iii) but only consistent with the 

20 following: 

21 ‘‘(I) The Secretary shall provide 

22 preference to clinical quality measures 

23 that have been endorsed by the entity 

24 with a contract with the Secretary 

25 under section 1890(a). 


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1 ‘‘(II) Prior to any measure being 

2 selected under this subparagraph, the 

3 Secretary shall publish in the Federal 

4 Register such measure and provide for 

5 a period of public comment on such 

6 measure. 

7 ‘‘(ii) LIMITATION.—The Secretary 

8 may not require the electronic reporting of 

9 information on clinical quality measures 

10 under subparagraph (A)(iii) unless the 

11 Secretary has the capacity to accept the in12 formation electronically, which may be on 

13 a pilot basis. 

14 ‘‘(iii) COORDINATION OF REPORTING

15 OF INFORMATION.—In selecting such 

16 measures, and in establishing the form and 

17 manner for reporting measures under sub18 paragraph (A)(iii), the Secretary shall seek 

19 to avoid redundant or duplicative reporting 

20 otherwise required, including reporting 

21 under subsection (k)(2)(C). 

22 ‘‘(C) DEMONSTRATION OF MEANINGFUL

23 USE OF CERTIFIED EHR TECHNOLOGY AND IN24 FORMATION EXCHANGE.— 


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1 ‘‘(i) IN GENERAL.—A professional 

2 may satisfy the demonstration requirement 

3 of clauses (i) and (ii) of subparagraph (A) 

4 through means specified by the Secretary, 

5 which may include— 

6 ‘‘(I) an attestation; 

7 ‘‘(II) the submission of claims 

8 with appropriate coding (such as a 

9 code indicating that a patient encoun10 ter was documented using certified 

11 EHR technology); 

12 ‘‘(III) a survey response; 

13 ‘‘(IV) reporting under subpara14 graph (A)(iii); and 

15 ‘‘(V) other means specified by the 

16 Secretary. 

17 ‘‘(ii) USE OF PART D DATA.—Not18 withstanding sections 1860D–15(d)(2)(B) 

19 and 1860D–15(f)(2), the Secretary may 

20 use data regarding drug claims submitted 

21 for purposes of section 1860D–15 that are 

22 necessary for purposes of subparagraph 

23 (A). 

24 ‘‘(3) APPLICATION.— 


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1 ‘‘(A) PHYSICIAN REPORTING SYSTEM

2 RULES.—Paragraphs (5), (6), and (8) of sub3 section (k) shall apply for purposes of this sub4 section in the same manner as they apply for 

5 purposes of such subsection. 

6 ‘‘(B) COORDINATION WITH OTHER PAY7 MENTS.—The provisions of this subsection shall 

8 not be taken into account in applying the provi9 sions of subsection (m) of this section and of 

10 section 1833(m) and any payment under such 

11 provisions shall not be taken into account in 

12 computing allowable charges under this sub13 section. 

14 ‘‘(C) LIMITATIONS ON REVIEW.—There 

15 shall be no administrative or judicial review 

16 under section 1869, section 1878, or otherwise 

17 of the determination of any incentive payment 

18 under this subsection and the payment adjust19 ment under subsection (a)(7), including the de20 termination of a meaningful EHR user under 

21 paragraph (2), a limitation under paragraph 

22 (1)(B), and the exception under subsection 

23 (a)(7)(B). 

24 ‘‘(D) POSTING ON WEBSITE.—The Sec25 retary shall post on the Internet website of the 


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1 Centers for Medicare & Medicaid Services, in an 

2 easily understandable format, a list of the 

3 names, business addresses, and business phone 

4 numbers of the eligible professionals who are 

5 meaningful EHR users and, as determined ap6 propriate by the Secretary, of group practices 

7 receiving incentive payments under paragraph 

8 (1). 

9 ‘‘(4) CERTIFIED EHR TECHNOLOGY DEFINED.— 

10 For purposes of this section, the term ‘certified 

11 EHR technology’ means a qualified electronic health 

12 record (as defined in 3000(13) of the Public Health 

13 Service Act) that is certified pursuant to section 

14 3001(c)(5) of such Act as meeting standards adopt15 ed under section 3004 of such Act that are applica16 ble to the type of record involved (as determined by 

17 the Secretary, such as an ambulatory electronic 

18 health record for office-based physicians or an inpa19 tient hospital electronic health record for hospitals). 

20 ‘‘(5) DEFINITIONS.—For purposes of this sub21 section: 

22 ‘‘(A) COVERED PROFESSIONAL SERV23 ICES.—The term ‘covered professional services’ 

24 has the meaning given such term in subsection 

25 (k)(3). 


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1 ‘‘(B) ELIGIBLE PROFESSIONAL.—The term 

2 ‘eligible professional’ means a physician, as de3 fined in section 1861(r). 

4 ‘‘(C) REPORTING PERIOD.—The term ‘re5 porting period’ means any period (or periods), 

6 with respect to a payment year, as specified by 

7 the Secretary.’’. 

8 (b) INCENTIVE PAYMENT ADJUSTMENT.—Section 

9 1848(a) of the Social Security Act (42 U.S.C. 1395w– 

10 4(a)) is amended by adding at the end the following new 

11 paragraph: 

12 ‘‘(7) INCENTIVES FOR MEANINGFUL USE OF

13 CERTIFIED EHR TECHNOLOGY.— 

14 ‘‘(A) ADJUSTMENT.— 

15 ‘‘(i) IN GENERAL.—Subject to sub16 paragraphs (B) and (D), with respect to 

17 covered professional services furnished by 

18 an eligible professional during 2016 or any 

19 subsequent payment year, if the eligible 

20 professional is not a meaningful EHR user 

21 (as determined under subsection (o)(2)) for 

22 a reporting period for the year, the fee 

23 schedule amount for such services fur24 nished by such professional during the year 

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1 poses of determining a payment based on 

2 such amount) shall be equal to the applica3 ble percent of the fee schedule amount that 

4 would otherwise apply to such services 

5 under this subsection (determined after ap6 plication of paragraph (3) but without re7 gard to this paragraph). 

8 ‘‘(ii) APPLICABLE PERCENT.—Subject 

9 to clause (iii), for purposes of clause (i), 

10 the term ‘applicable percent’ means— 

11 ‘‘(I) for 2016, 99 percent; 

12 ‘‘(II) for 2017, 98 percent; and 

13 ‘‘(III) for 2018 and each subse14 quent year, 97 percent. 

15 ‘‘(iii) AUTHORITY TO DECREASE AP16 PLICABLE PERCENTAGE FOR 2019 AND

17 SUBSEQUENT YEARS.—For 2019 and each 

18 subsequent year, if the Secretary finds that 

19 the proportion of eligible professionals who 

20 are meaningful EHR users (as determined 

21 under subsection (o)(2)) is less than 75 

22 percent, the applicable percent shall be de23 creased by 1 percentage point from the ap24 plicable percent in the preceding year, but 


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1 in no case shall the applicable percent be 

2 less than 95 percent. 

3 ‘‘(B) SIGNIFICANT HARDSHIP EXCEP4 TION.—The Secretary may, on a case-by-case 

5 basis, exempt an eligible professional from the 

6 application of the payment adjustment under 

7 subparagraph (A) if the Secretary determines, 

8 subject to annual renewal, that compliance with 

9 the requirement for being a meaningful EHR 

10 user would result in a significant hardship, such 

11 as in the case of an eligible professional who 

12 practices in a rural area without sufficient 

13 Internet access. In no case may an eligible pro14 fessional be granted an exemption under this 

15 subparagraph for more than 5 years. 

16 ‘‘(C) APPLICATION OF PHYSICIAN REPORT17 ING SYSTEM RULES.—Paragraphs (5), (6), and 

18 (8) of subsection (k) shall apply for purposes of 

19 this paragraph in the same manner as they 

20 apply for purposes of such subsection. 

21 ‘‘(D) NON-APPLICATION TO HOSPITAL22 BASED ELIGIBLE PROFESSIONALS.—No pay23 ment adjustment may be made under subpara24 graph (A) in the case of hospital-based eligible 


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1 professionals (as defined in subsection 

2 (o)(1)(C)(ii)). 

3 ‘‘(E) DEFINITIONS.—For purposes of this 

4 paragraph: 

5 ‘‘(i) COVERED PROFESSIONAL SERV6 ICES.—The term ‘covered professional 

7 services’ has the meaning given such term 

8 in subsection (k)(3). 

9 ‘‘(ii) ELIGIBLE PROFESSIONAL.—The 

10 term ‘eligible professional’ means a physi11 cian, as defined in section 1861(r). 

12 ‘‘(iii) REPORTING PERIOD.—The term 

13 ‘reporting period’ means, with respect to a 

14 year, a period specified by the Secretary.’’. 

15 (c) APPLICATION TO CERTAIN HMO-AFFILIATED

16 ELIGIBLE PROFESSIONALS.—Section 1853 of the Social 

17 Security Act (42 U.S.C. 1395w–23) is amended by adding 

18 at the end the following new subsection: 

19 ‘‘(l) APPLICATION OF ELIGIBLE PROFESSIONAL IN20 CENTIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOP21 TION AND MEANINGFUL USE OF CERTIFIED EHR TECH22 NOLOGY.— 

23 ‘‘(1) IN GENERAL.—Subject to paragraphs (3) 

24 and (4), in the case of a qualifying MA organization, 

25 the provisions of sections 1848(o) and 1848(a)(7) 


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1 shall apply with respect to eligible professionals de2 scribed in paragraph (2) of the organization who the 

3 organization attests under paragraph (6) to be 

4 meaningful EHR users in a similar manner as they 

5 apply to eligible professionals under such sections. 

6 Incentive payments under paragraph (3) shall be 

7 made to and payment adjustments under paragraph 

8 (4) shall apply to such qualifying organizations. 

9 ‘‘(2) ELIGIBLE PROFESSIONAL DESCRIBED.— 

10 With respect to a qualifying MA organization, an eli11 gible professional described in this paragraph is an 

12 eligible professional (as defined for purposes of sec13 tion 1848(o)) who— 

14 ‘‘(A)(i) is employed by the organization; or 

15 ‘‘(ii)(I) is employed by, or is a partner of, 

16 an entity that through contract with the organi17 zation furnishes at least 80 percent of the enti18 ty’s patient care services to enrollees of such or19 ganization; and 

20 ‘‘(II) furnishes at least 80 percent of the 

21 professional services of the eligible professional 

22 to enrollees of the organization; and 

23 ‘‘(B) furnishes, on average, at least 20 

24 hours per week of patient care services. 


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1 ‘‘(3) ELIGIBLE PROFESSIONAL INCENTIVE PAY2 MENTS.— 

3 ‘‘(A) IN GENERAL.—In applying section 

4 1848(o) under paragraph (1), instead of the ad5 ditional payment amount under section 

6 1848(o)(1)(A) and subject to subparagraph 

7 (B), the Secretary may substitute an amount 

8 determined by the Secretary to the extent fea9 sible and practical to be similar to the esti10 mated amount in the aggregate that would be 

11 payable if payment for services furnished by 

12 such professionals was payable under part B in13 stead of this part. 

14 ‘‘(B) AVOIDING DUPLICATION OF PAY15 MENTS.— 

16 ‘‘(i) IN GENERAL.—If an eligible pro17 fessional described in paragraph (2) is eli18 gible for the maximum incentive payment 

19 under section 1848(o)(1)(A) for the same 

20 payment period, the payment incentive 

21 shall be made only under such section and 

22 not under this subsection. 

23 ‘‘(ii) METHODS.—In the case of an el24 igible professional described in paragraph 

25 (2) who is eligible for an incentive payment 


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1 under section 1848(o)(1)(A) but is not de2 scribed in clause (i) for the same payment 

3 period, the Secretary shall develop a proc4 ess— 

5 ‘‘(I) to ensure that duplicate pay6 ments are not made with respect to 

7 an eligible professional both under 

8 this subsection and under section 

9 1848(o)(1)(A); and 

10 ‘‘(II) to collect data from Medi11 care Advantage organizations to en12 sure against such duplicate payments. 

13 ‘‘(C) FIXED SCHEDULE FOR APPLICATION

14 OF LIMITATION ON INCENTIVE PAYMENTS FOR

15 ALL ELIGIBLE PROFESSIONALS.—In applying 

16 section 1848(o)(1)(B)(ii) under subparagraph 

17 (A), in accordance with rules specified by the 

18 Secretary, a qualifying MA organization shall 

19 specify a year (not earlier than 2011) that shall 

20 be treated as the first payment year for all eli21 gible professionals with respect to such organi22 zation. 

23 ‘‘(4) PAYMENT ADJUSTMENT.— 

24 ‘‘(A) IN GENERAL.—In applying section 

25 1848(a)(7) under paragraph (1), instead of the 


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1 payment adjustment being an applicable per2 cent of the fee schedule amount for a year 

3 under such section, subject to subparagraph 

4 (D), the payment adjustment under paragraph 

5 (1) shall be equal to the percent specified in 

6 subparagraph (B) for such year of the payment 

7 amount otherwise provided under this section 

8 for such year. 

9 ‘‘(B) SPECIFIED PERCENT.—The percent 

10 specified under this subparagraph for a year is 

11 100 percent minus a number of percentage 

12 points equal to the product of— 

13 ‘‘(i) the number of percentage points 

14 by which the applicable percent (under sec15 tion 1848(a)(7)(A)(ii)) for the year is less 

16 than 100 percent; and 

17 ‘‘(ii) the Medicare physician expendi18 ture proportion specified in subparagraph 

19 (C) for the year. 

20 ‘‘(C) MEDICARE PHYSICIAN EXPENDITURE

21 PROPORTION.—The Medicare physician expend22 iture proportion under this subparagraph for a 

23 year is the Secretary’s estimate of the propor24 tion, of the expenditures under parts A and B 

25 that are not attributable to this part, that are 


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1 attributable to expenditures for physicians’ 

2 services. 

3 ‘‘(D) APPLICATION OF PAYMENT ADJUST4 MENT.—In the case that a qualifying MA orga5 nization attests that not all eligible profes6 sionals are meaningful EHR users with respect 

7 to a year, the Secretary shall apply the payment 

8 adjustment under this paragraph based on the 

9 proportion of such eligible professionals that are 

10 not meaningful EHR users for such year. 

11 ‘‘(5) QUALIFYING MA ORGANIZATION DE12 FINED.—In this subsection and subsection (m), the 

13 term ‘qualifying MA organization’ means a Medicare 

14 Advantage organization that is organized as a health 

15 maintenance organization (as defined in section 

16 2791(b)(3) of the Public Health Service Act). 

17 ‘‘(6) MEANINGFUL EHR USER ATTESTATION.— 

18 For purposes of this subsection and subsection (m), 

19 a qualifying MA organization shall submit an attes20 tation, in a form and manner specified by the Sec21 retary which may include the submission of such at22 testation as part of submission of the initial bid 

23 under section 1854(a)(1)(A)(iv), identifying— 

24 ‘‘(A) whether each eligible professional de25 scribed in paragraph (2), with respect to such 


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1 organization is a meaningful EHR user (as de2 fined in section 1848(o)(2)) for a year specified 

3 by the Secretary; and 

4 ‘‘(B) whether each eligible hospital de5 scribed in subsection (m)(1), with respect to 

6 such organization, is a meaningful EHR user 

7 (as defined in section 1886(n)(3)) for an appli8 cable period specified by the Secretary.’’. 

9 (d) CONFORMING AMENDMENTS.—Section 1853 of 

10 the Social Security Act (42 U.S.C. 1395w–23) is amend11 ed— 

12 (1) in subsection (a)(1)(A), by striking ‘‘and 

13 (i)’’ and inserting ‘‘(i), and (l)’’; 

14 (2) in subsection (c)— 

15 (A) in paragraph (1)(D)(i), by striking 

16 ‘‘section 1886(h)’’ and inserting ‘‘sections 

17 1848(o) and 1886(h)’’; and 

18 (B) in paragraph (6)(A), by inserting after 

19 ‘‘under part B,’’ the following: ‘‘excluding ex20 penditures attributable to subsections (a)(7) 

21 and (o) of section 1848,’’; and 

22 (3) in subsection (f), by inserting ‘‘and for pay23 ments under subsection (l)’’ after ‘‘with the organi24 zation’’. 


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1 (e) CONFORMING AMENDMENTS TO E-PRE2 SCRIBING.— 

3 (1) Section 1848(a)(5)(A) of the Social Security 

4 Act (42 U.S.C. 1395w–4(a)(5)(A)) is amended— 

5 (A) in clause (i), by striking ‘‘or any sub6 sequent year’’ and inserting ‘‘, 2013, 2014, or 

7 2015’’; and 

8 (B) in clause (ii), by striking ‘‘and each 

9 subsequent year’’ and inserting ‘‘and 2015’’. 

10 (2) Section 1848(m)(2) of such Act (42 U.S.C. 

11 1395w–4(m)(2)) is amended— 

12 (A) in subparagraph (A), by striking ‘‘For 

13 2009’’ and inserting ‘‘Subject to subparagraph 

14 (D), for 2009’’; and 

15 (B) by adding at the end the following new 

16 subparagraph: 

17 ‘‘(D) LIMITATION WITH RESPECT TO EHR

18 INCENTIVE PAYMENTS.—The provisions of this 

19 paragraph shall not apply to an eligible profes20 sional (or, in the case of a group practice under 

21 paragraph (3)(C), to the group practice) if, for 

22 the reporting period the eligible professional (or 

23 group practice) receives an incentive payment 

24 under subsection (o)(1)(A) with respect to a 

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1 section (o)(4)) that has the capability of elec2 tronic prescribing.’’. 

3 SEC. 4312. INCENTIVES FOR HOSPITALS. 

4 (a) INCENTIVE PAYMENT.—Section 1886 of the So5 cial Security Act (42 U.S.C. 1395ww) is amended by add6 ing at the end the following new subsection: 

7 ‘‘(n) INCENTIVES FOR ADOPTION AND MEANINGFUL

8 USE OF CERTIFIED EHR TECHNOLOGY.— 

9 ‘‘(1) IN GENERAL.—Subject to the succeeding 

10 provisions of this subsection, with respect to inpa11 tient hospital services furnished by an eligible hos12 pital during a payment year (as defined in para13 graph (2)(G)), if the eligible hospital is a meaningful 

14 EHR user (as determined under paragraph (3)) for 

15 the reporting period with respect to such year, in ad16 dition to the amount otherwise paid under this sec17 tion, there also shall be paid to the eligible hospital, 

18 from the Federal Hospital Insurance Trust Fund es19 tablished under section 1817, an amount equal to 

20 the applicable amount specified in paragraph (2)(A) 

21 for the hospital for such payment year. 

22 ‘‘(2) PAYMENT AMOUNT.— 

23 ‘‘(A) IN GENERAL.—Subject to the suc24 ceeding subparagraphs of this paragraph, the 

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1 graph for an eligible hospital for a payment 

2 year is equal to the product of the following: 

3 ‘‘(i) INITIAL AMOUNT.—The sum of— 

4 ‘‘(I) the base amount specified in 

5 subparagraph (B); plus 

6 ‘‘(II) the discharge related 

7 amount specified in subparagraph (C) 

8 for a 12-month period selected by the 

9 Secretary with respect to such pay10 ment year. 

11 ‘‘(ii) MEDICARE SHARE.—The Medi12 care share as specified in subparagraph 

13 (D) for the hospital for a period selected 

14 by the Secretary with respect to such pay15 ment year. 

16 ‘‘(iii) TRANSITION FACTOR.—The 

17 transition factor specified in subparagraph 

18 (E) for the hospital for the payment year. 

19 ‘‘(B) BASE AMOUNT.—The base amount 

20 specified in this subparagraph is $2,000,000. 

21 ‘‘(C) DISCHARGE RELATED AMOUNT.—The 

22 discharge related amount specified in this sub23 paragraph for a 12-month period selected by 

24 the Secretary shall be determined as the sum of 

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1 gardless of any source of payment) for the pe2 riod, for each discharge up to the 23,000th dis3 charge as follows: 

4 ‘‘(i) For the 1,150th through the 

5 23,000th discharge, $200. 

6 ‘‘(ii) For any discharge greater than 

7 the 23,000th, $0. 

8 ‘‘(D) MEDICARE SHARE.—The Medicare 

9 share specified under this subparagraph for a 

10 hospital for a period selected by the Secretary 

11 for a payment year is equal to the fraction— 

12 ‘‘(i) the numerator of which is the 

13 sum (for such period and with respect to 

14 the hospital) of— 

15 ‘‘(I) the number of inpatient-bed16 days (as established by the Secretary) 

17 which are attributable to individuals 

18 with respect to whom payment may be 

19 made under part A; and 

20 ‘‘(II) the number of inpatient21 bed-days (as so established) which are 

22 attributable to individuals who are en23 rolled with a Medicare Advantage or24 ganization under part C; and 


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1 ‘‘(ii) the denominator of which is the 

2 product of— 

3 ‘‘(I) the total number of inpa4 tient-bed-days with respect to the hos5 pital during such period; and 

6 ‘‘(II) the total amount of the hos7 pital’s charges during such period, not 

8 including any charges that are attrib9 utable to charity care (as such term is 

10 used for purposes of hospital cost re11 porting under this title), divided by 

12 the total amount of the hospital’s 

13 charges during such period. 

14 Insofar as the Secretary determines that data 

15 are not available on charity care necessary to 

16 calculate the portion of the formula specified in 

17 clause (ii)(II), the Secretary shall use data on 

18 uncompensated care and may adjust such data 

19 so as to be an appropriate proxy for charity 

20 care including a downward adjustment to elimi21 nate bad debt data from uncompensated care 

22 data. In the absence of the data necessary, with 

23 respect to a hospital, for the Secretary to com24 pute the amount described in clause (ii)(II), the 

25 amount under such clause shall be deemed to 


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1 be 1. In the absence of data, with respect to a 

2 hospital, necessary to compute the amount de3 scribed in clause (i)(II), the amount under such 

4 clause shall be deemed to be 0. 

5 ‘‘(E) TRANSITION FACTOR SPECIFIED.— 

6 ‘‘(i) IN GENERAL.—Subject to clause 

7 (ii), the transition factor specified in this 

8 subparagraph for an eligible hospital for a 

9 payment year is as follows: 

10 ‘‘(I) For the first payment year 

11 for such hospital, 1. 

12 ‘‘(II) For the second payment 

year for such hospital, 3 13 ⁄4. 

14 ‘‘(III) For the third payment 

year for such hospital, 1 15 ⁄2. 

16 ‘‘(IV) For the fourth payment 

year for such hospital, 1 17 ⁄4. 

18 ‘‘(V) For any succeeding pay19 ment year for such hospital, 0. 

20 ‘‘(ii) PHASE DOWN FOR ELIGIBLE

21 HOSPITALS FIRST ADOPTING EHR AFTER

22 2013.—If the first payment year for an eli23 gible hospital is after 2013, then the tran24 sition factor specified in this subparagraph 

25 for a payment year for such hospital is the 


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1 same as the amount specified in clause (i) 

2 for such payment year for an eligible hos3 pital for which the first payment year is 

4 2013. If the first payment year for an eli5 gible hospital is after 2015 then the transi6 tion factor specified in this subparagraph 

7 for such hospital and for such year and 

8 any subsequent year shall be 0. 

9 ‘‘(F) FORM OF PAYMENT.—The payment 

10 under this subsection for a payment year may 

11 be in the form of a single consolidated payment 

12 or in the form of such periodic installments as 

13 the Secretary may specify. 

14 ‘‘(G) PAYMENT YEAR DEFINED.— 

15 ‘‘(i) IN GENERAL.—For purposes of 

16 this subsection, the term ‘payment year’ 

17 means a fiscal year beginning with fiscal 

18 year 2011. 

19 ‘‘(ii) FIRST, SECOND, ETC. PAYMENT

20 YEAR.—The term ‘first payment year’ 

21 means, with respect to inpatient hospital 

22 services furnished by an eligible hospital, 

23 the first fiscal year for which an incentive 

24 payment is made for such services under 

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1 ment year’, ‘third payment year’, and 

2 ‘fourth payment year’ mean, with respect 

3 to an eligible hospital, each successive year 

4 immediately following the first payment 

5 year for that hospital. 

6 ‘‘(3) MEANINGFUL EHR USER.— 

7 ‘‘(A) IN GENERAL.—For purposes of para8 graph (1), an eligible hospital shall be treated 

9 as a meaningful EHR user for a reporting pe10 riod for a payment year (or, for purposes of 

11 subsection (b)(3)(B)(ix), for a reporting period 

12 under such subsection for a fiscal year) if each 

13 of the following requirements are met: 

14 ‘‘(i) MEANINGFUL USE OF CERTIFIED

15 EHR TECHNOLOGY.—The eligible hospital 

16 demonstrates to the satisfaction of the Sec17 retary, in accordance with subparagraph 

18 (C)(i), that during such period the hospital 

19 is using certified EHR technology in a 

20 meaningful manner. 

21 ‘‘(ii) INFORMATION EXCHANGE.—The 

22 eligible hospital demonstrates to the satis23 faction of the Secretary, in accordance 

24 with subparagraph (C)(i), that during such 

25 period such certified EHR technology is 


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1 connected in a manner that provides, in 

2 accordance with law and standards appli3 cable to the exchange of information, for 

4 the electronic exchange of health informa5 tion to improve the quality of health care, 

6 such as promoting care coordination. 

7 ‘‘(iii) REPORTING ON MEASURES

8 USING EHR.—Subject to subparagraph 

9 (B)(ii) and using such certified EHR tech10 nology, the eligible hospital submits infor11 mation for such period, in a form and 

12 manner specified by the Secretary, on such 

13 clinical quality measures and such other 

14 measures as selected by the Secretary 

15 under subparagraph (B)(i). 

16 The Secretary shall seek to improve the use of 

17 electronic health records and health care quality 

18 over time by requiring more stringent measures 

19 of meaningful use selected under this para20 graph. 

21 ‘‘(B) REPORTING ON MEASURES.— 

22 ‘‘(i) SELECTION.—The Secretary shall 

23 select measures for purposes of subpara24 graph (A)(iii) but only consistent with the 

25 following: 


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1 ‘‘(I) The Secretary shall provide 

2 preference to clinical quality measures 

3 that have been selected for purposes 

4 of applying subsection (b)(3)(B)(viii) 

5 or that have been endorsed by the en6 tity with a contract with the Secretary 

7 under section 1890(a). 

8 ‘‘(II) Prior to any measure (other 

9 than a clinical quality measure that 

10 has been selected for purposes of ap11 plying subsection (b)(3)(B)(viii)) 

12 being selected under this subpara13 graph, the Secretary shall publish in 

14 the Federal Register such measure 

15 and provide for a period of public 

16 comment on such measure. 

17 ‘‘(ii) LIMITATIONS.—The Secretary 

18 may not require the electronic reporting of 

19 information on clinical quality measures 

20 under subparagraph (A)(iii) unless the 

21 Secretary has the capacity to accept the in22 formation electronically, which may be on 

23 a pilot basis. 

24 ‘‘(iii) COORDINATION OF REPORTING

25 OF INFORMATION.—In selecting such 


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1 measures, and in establishing the form and 

2 manner for reporting measures under sub3 paragraph (A)(iii), the Secretary shall seek 

4 to avoid redundant or duplicative reporting 

5 with reporting otherwise required, includ6 ing reporting under subsection 

7 (b)(3)(B)(viii). 

8 ‘‘(C) DEMONSTRATION OF MEANINGFUL

9 USE OF CERTIFIED EHR TECHNOLOGY AND IN10 FORMATION EXCHANGE.— 

11 ‘‘(i) IN GENERAL.—A hospital may 

12 satisfy the demonstration requirement of 

13 clauses (i) and (ii) of subparagraph (A) 

14 through means specified by the Secretary, 

15 which may include— 

16 ‘‘(I) an attestation; 

17 ‘‘(II) the submission of claims 

18 with appropriate coding (such as a 

19 code indicating that inpatient care 

20 was documented using certified EHR 

21 technology); 

22 ‘‘(III) a survey response; 

23 ‘‘(IV) reporting under subpara24 graph (A)(iii); and 


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1 ‘‘(V) other means specified by the 

2 Secretary. 

3 ‘‘(ii) USE OF PART D DATA.—Not4 withstanding sections 1860D–15(d)(2)(B) 

5 and 1860D–15(f)(2), the Secretary may 

6 use data regarding drug claims submitted 

7 for purposes of section 1860D–15 that are 

8 necessary for purposes of subparagraph 

9 (A). 

10 ‘‘(4) APPLICATION.— 

11 ‘‘(A) LIMITATIONS ON REVIEW.—There 

12 shall be no administrative or judicial review 

13 under section 1869, section 1878, or otherwise 

14 of the determination of any incentive payment 

15 under this subsection and the payment adjust16 ment under subsection (b)(3)(B)(ix), including 

17 the determination of a meaningful EHR user 

18 under paragraph (3), determination of meas19 ures applicable to services furnished by eligible 

20 hospitals under this subsection, and the excep21 tion under subsection (b)(3)(B)(ix)(II). 

22 ‘‘(B) POSTING ON WEBSITE.—The Sec23 retary shall post on the Internet website of the 

24 Centers for Medicare & Medicaid Services, in an 

25 easily understandable format, a list of the 


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1 names of the eligible hospitals that are mean2 ingful EHR users under this subsection or sub3 section (b)(3)(B)(ix) and other relevant data as 

4 determined appropriate by the Secretary. The 

5 Secretary shall ensure that a hospital has the 

6 opportunity to review the other relevant data 

7 that are to be made public with respect to the 

8 hospital prior to such data being made public. 

9 ‘‘(5) CERTIFIED EHR TECHNOLOGY DEFINED.— 

10 The term ‘certified EHR technology’ has the mean11 ing given such term in section 1848(o)(4). 

12 ‘‘(6) DEFINITIONS.—For purposes of this sub13 section: 

14 ‘‘(A) ELIGIBLE HOSPITAL.—The term ‘eli15 gible hospital’ means a subsection (d) hospital. 

16 ‘‘(B) REPORTING PERIOD.—The term ‘re17 porting period’ means any period (or periods), 

18 with respect to a payment year, as specified by 

19 the Secretary.’’. 

20 (b) INCENTIVE MARKET BASKET ADJUSTMENT.— 

21 Section 1886(b)(3)(B) of the Social Security Act (42 

22 U.S.C. 1395ww(b)(3)(B)) is amended— 

23 (1) in clause (viii)(I), by inserting ‘‘(or, begin24 ning with fiscal year 2016, by one-quarter)’’ after 

25 ‘‘2.0 percentage points’’; and 


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1 (2) by adding at the end the following new 

2 clause: 

3 ‘‘(ix)(I) For purposes of clause (i) for fiscal year 

4 2016 and each subsequent fiscal year, in the case of an 

5 eligible hospital (as defined in subsection (n)(6)(A)) that 

6 is not a meaningful EHR user (as defined in subsection 

7 (n)(3)) for the reporting period for such fiscal year, three8 quarters of the applicable percentage increase otherwise 

9 applicable under clause (i) for such fiscal year shall be 

reduced by 331⁄3 percent for fiscal year 2016, 662 10 ⁄3 per11 cent for fiscal year 2017, and 100 percent for fiscal year 

12 2018 and each subsequent fiscal year. Such reduction 

13 shall apply only with respect to the fiscal year involved 

14 and the Secretary shall not take into account such reduc15 tion in computing the applicable percentage increase under 

16 clause (i) for a subsequent fiscal year. 

17 ‘‘(II) The Secretary may, on a case-by-case basis, ex18 empt a subsection (d) hospital from the application of sub19 clause (I) with respect to a fiscal year if the Secretary 

20 determines, subject to annual renewal, that requiring such 

21 hospital to be a meaningful EHR user during such fiscal 

22 year would result in a significant hardship, such as in the 

23 case of a hospital in a rural area without sufficient Inter24 net access. In no case may a hospital be granted an ex25 emption under this subclause for more than 5 years. 


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1 ‘‘(III) For fiscal year 2016 and each subsequent fis2 cal year, a State in which hospitals are paid for services 

3 under section 1814(b)(3) shall adjust the payments to 

4 each subsection (d) hospital in the State that is not a 

5 meaningful EHR user (as defined in subsection (n)(3)) 

6 in a manner that is designed to result in an aggregate 

7 reduction in payments to hospitals in the State that is 

8 equivalent to the aggregate reduction that would have oc9 curred if payments had been reduced to each subsection 

10 (d) hospital in the State in a manner comparable to the 

11 reduction under the previous provisions of this clause. The 

12 State shall report to the Secretary the methodology it will 

13 use to make the payment adjustment under the previous 

14 sentence. 

15 ‘‘(IV) For purposes of this clause, the term ‘reporting 

16 period’ means, with respect to a fiscal year, any period 

17 (or periods), with respect to the fiscal year, as specified 

18 by the Secretary.’’. 

19 (c) APPLICATION TO CERTAIN HMO-AFFILIATED

20 ELIGIBLE HOSPITALS.—Section 1853 of the Social Secu21 rity Act (42 U.S.C. 1395w–23), as amended by section 

22 4311(c), is further amended by adding at the end the fol23 lowing new subsection: 

24 ‘‘(m) APPLICATION OF ELIGIBLE HOSPITAL INCEN25 TIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOPTION


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1 AND MEANINGFUL USE OF CERTIFIED EHR TECH2 NOLOGY.— 

3 ‘‘(1) APPLICATION.—Subject to paragraphs (3) 

4 and (4), in the case of a qualifying MA organization, 

5 the provisions of sections 1886(n) and 

6 1886(b)(3)(B)(ix) shall apply with respect to eligible 

7 hospitals described in paragraph (2) of the organiza8 tion which the organization attests under subsection 

9 (l)(6) to be meaningful EHR users in a similar man10 ner as they apply to eligible hospitals under such 

11 sections. Incentive payments under paragraph (3) 

12 shall be made to and payment adjustments under 

13 paragraph (4) shall apply to such qualifying organi14 zations. 

15 ‘‘(2) ELIGIBLE HOSPITAL DESCRIBED.—With 

16 respect to a qualifying MA organization, an eligible 

17 hospital described in this paragraph is an eligible 

18 hospital that is under common corporate governance 

19 with such organization and serves individuals en20 rolled under an MA plan offered by such organiza21 tion. 

22 ‘‘(3) ELIGIBLE HOSPITAL INCENTIVE PAY23 MENTS.— 

24 ‘‘(A) IN GENERAL.—In applying section 

25 1886(n)(2) under paragraph (1), instead of the 


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1 additional payment amount under section 

2 1886(n)(2), there shall be substituted an 

3 amount determined by the Secretary to be simi4 lar to the estimated amount in the aggregate 

5 that would be payable if payment for services 

6 furnished by such hospitals was payable under 

7 part A instead of this part. In implementing the 

8 previous sentence, the Secretary— 

9 ‘‘(i) shall, insofar as data to deter10 mine the discharge related amount under 

11 section 1886(n)(2)(C) for an eligible hos12 pital are not available to the Secretary, use 

13 such alternative data and methodology to 

14 estimate such discharge related amount as 

15 the Secretary determines appropriate; and 

16 ‘‘(ii) shall, insofar as data to deter17 mine the medicare share described in sec18 tion 1886(n)(2)(D) for an eligible hospital 

19 are not available to the Secretary, use such 

20 alternative data and methodology to esti21 mate such share, which data and method22 ology may include use of the inpatient bed 

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1 uals for whom payment may be made 

2 under part A or individuals enrolled in an 

3 MA plan under a Medicare Advantage or4 ganization under this part as a proportion 

5 of the total number of patient-bed-days (or 

6 discharges) with respect to such hospital 

7 during such period. 

8 ‘‘(B) AVOIDING DUPLICATION OF PAY9 MENTS.— 

10 ‘‘(i) IN GENERAL.—In the case of a 

11 hospital that for a payment year is an eli12 gible hospital described in paragraph (2), 

13 is an eligible hospital under section 

14 1886(n), and for which at least one-third 

15 of their discharges (or bed-days) of Medi16 care patients for the year are covered 

17 under part A, payment for the payment 

18 year shall be made only under section 

19 1886(n) and not under this subsection. 

20 ‘‘(ii) METHODS.—In the case of a 

21 hospital that is an eligible hospital de22 scribed in paragraph (2) and also is eligi23 ble for an incentive payment under section 

24 1886(n) but is not described in clause (i) 


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1 for the same payment period, the Secretary 

2 shall develop a process— 

3 ‘‘(I) to ensure that duplicate pay4 ments are not made with respect to 

5 an eligible hospital both under this 

6 subsection and under section 1886(n); 

7 and 

8 ‘‘(II) to collect data from Medi9 care Advantage organizations to en10 sure against such duplicate payments. 

11 ‘‘(4) PAYMENT ADJUSTMENT.— 

12 ‘‘(A) Subject to paragraph (3), in the case 

13 of a qualifying MA organization (as defined in 

14 section 1853(l)(5)), if, according to the attesta15 tion of the organization submitted under sub16 section (l)(6) for an applicable period, one or 

17 more eligible hospitals (as defined in section 

18 1886(n)(6)(A)) that are under common cor19 porate governance with such organization and 

20 that serve individuals enrolled under a plan of21 fered by such organization are not meaningful 

22 EHR users (as defined in section 1886(n)(3)) 

23 with respect to a period, the payment amount 

24 payable under this section for such organization 

25 for such period shall be the percent specified in 


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1 subparagraph (B) for such period of the pay2 ment amount otherwise provided under this sec3 tion for such period. 

4 ‘‘(B) SPECIFIED PERCENT.—The percent 

5 specified under this subparagraph for a year is 

6 100 percent minus a number of percentage 

7 points equal to the product of— 

8 ‘‘(i) the number of the percentage 

9 point reduction effected under section 

10 1886(b)(3)(B)(ix)(I) for the period; and 

11 ‘‘(ii) the Medicare hospital expendi12 ture proportion specified in subparagraph 

13 (C) for the year. 

14 ‘‘(C) MEDICARE HOSPITAL EXPENDITURE

15 PROPORTION.—The Medicare hospital expendi16 ture proportion under this subparagraph for a 

17 year is the Secretary’s estimate of the propor18 tion, of the expenditures under parts A and B 

19 that are not attributable to this part, that are 

20 attributable to expenditures for inpatient hos21 pital services. 

22 ‘‘(D) APPLICATION OF PAYMENT ADJUST23 MENT.—In the case that a qualifying MA orga24 nization attests that not all eligible hospitals 

25 are meaningful EHR users with respect to an 


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1 applicable period, the Secretary shall apply the 

2 payment adjustment under this paragraph 

3 based on a methodology specified by the Sec4 retary, taking into account the proportion of 

5 such eligible hospitals, or discharges from such 

6 hospitals, that are not meaningful EHR users 

7 for such period.’’. 

8 (d) CONFORMING AMENDMENTS.— 

9 (1) Section 1814(b) of the Social Security Act 

10 (42 U.S.C. 1395f(b)) is amended— 

11 (A) in paragraph (3), in the matter pre12 ceding subparagraph (A), by inserting ‘‘, sub13 ject to section 1886(d)(3)(B)(ix)(III),’’ after 

14 ‘‘then’’; and 

15 (B) by adding at the end the following: 

16 ‘‘For purposes of applying paragraph (3), there 

17 shall be taken into account incentive payments, 

18 and payment adjustments under subsection 

19 (b)(3)(B)(ix) or (n) of section 1886.’’. 

20 (2) Section 1851(i)(1) of the Social Security 

21 Act (42 U.S.C. 1395w–21(i)(1)) is amended by 

22 striking ‘‘and 1886(h)(3)(D)’’ and inserting 

23 ‘‘1886(h)(3)(D), and 1853(m)’’. 


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1 (3) Section 1853 of the Social Security Act (42 

2 U.S.C. 1395w–23), as amended by section 

3 4311(d)(1), is amended— 

4 (A) in subsection (c)— 

5 (i) in paragraph (1)(D)(i), by striking 

6 ‘‘1848(o)’’ and inserting ‘‘, 1848(o), and 

7 1886(n)’’; and 

8 (ii) in paragraph (6)(A), by inserting 

9 ‘‘and subsections (b)(3)(B)(ix) and (n) of 

10 section 1886’’ after ‘‘section 1848’’; and 

11 (B) in subsection (f), by inserting ‘‘and 

12 subsection (m)’’ after ‘‘under subsection (l)’’. 

13 SEC. 4313. TREATMENT OF PAYMENTS AND SAVINGS; IM14 PLEMENTATION FUNDING. 

15 (a) PREMIUM HOLD HARMLESS.— 

16 (1) IN GENERAL.—Section 1839(a)(1) of the 

17 Social Security Act (42 U.S.C. 1395r(a)(1)) is 

18 amended by adding at the end the following: ‘‘In ap19 plying this paragraph there shall not be taken into 

20 account additional payments under section 1848(o) 

21 and section 1853(l)(3) and the Government con22 tribution under section 1844(a)(3).’’. 

23 (2) PAYMENT.—Section 1844(a) of such Act 

24 (42 U.S.C. 1395w(a)) is amended— 


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1 (A) in paragraph (2), by striking the pe2 riod at the end and inserting ‘‘; plus’’; and 

3 (B) by adding at the end the following new 

4 paragraph: 

5 ‘‘(3) a Government contribution equal to the 

6 amount of payment incentives payable under sec7 tions 1848(o) and 1853(l)(3).’’. 

8 (b) MEDICARE IMPROVEMENT FUND.—Section 1898 

9 of the Social Security Act (42 U.S.C. 1395iii), as added 

10 by section 7002(a) of the Supplemental Appropriations 

11 Act, 2008 (Public Law 110–252) and as amended by sec12 tion 188(a)(2) of the Medicare Improvements for Patients 

13 and Providers Act of 2008 (Public Law 110–275; 122 

14 Stat. 2589) and by section 6 of the QI Program Supple15 mental Funding Act of 2008, is amended— 

16 (1) in subsection (a)— 

17 (A) by inserting ‘‘medicare’’ before ‘‘fee18 for-service’’; and 

19 (B) by inserting before the period at the 

20 end the following: ‘‘including, but not limited 

21 to, an increase in the conversion factor under 

22 section 1848(d) to address, in whole or in part, 

23 any projected shortfall in the conversion factor 

24 for 2014 relative to the conversion factor for 

25 2008 and adjustments to payments for items 


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1 and services furnished by providers of services 

2 and suppliers under such original medicare fee3 for-service program’’; and 

4 (2) in subsection (b)— 

5 (A) in paragraph (1), by striking ‘‘during 

6 fiscal year 2014,’’ and all that follows and in7 serting the following: ‘‘during— 

8 ‘‘(A) fiscal year 2014, $22,290,000,000; 

9 and 

10 ‘‘(B) fiscal year 2020 and each subsequent 

11 fiscal year, the Secretary’s estimate, as of July 

12 1 of the fiscal year, of the aggregate reduction 

13 in expenditures under this title during the pre14 ceding fiscal year directly resulting from the re15 duction in payment amounts under sections 

16 1848(a)(7), 1853(l)(4), 1853(m)(4), and 

17 1886(b)(3)(B)(ix).’’; and 

18 (B) by adding at the end the following new 

19 paragraph: 

20 ‘‘(4) NO EFFECT ON PAYMENTS IN SUBSE21 QUENT YEARS.—In the case that expenditures from 

22 the Fund are applied to, or otherwise affect, a pay23 ment rate for an item or service under this title for 

24 a year, the payment rate for such item or service 


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1 shall be computed for a subsequent year as if such 

2 application or effect had never occurred.’’. 

3 (c) IMPLEMENTATION FUNDING.—In addition to 

4 funds otherwise available, out of any funds in the Treas5 ury not otherwise appropriated, there are appropriated to 

6 the Secretary of Health and Human Services for the Cen7 ter for Medicare & Medicaid Services Program Manage8 ment Account, $60,000,000 for each of fiscal years 2009 

9 through 2015 and $30,000,000 for each succeeding fiscal 

10 year through fiscal year 2019, which shall be available for 

11 purposes of carrying out the provisions of (and amend12 ments made by) this part. Amounts appropriated under 

13 this subsection for a fiscal year shall be available until ex14 pended. 

15 SEC. 4314. STUDY ON APPLICATION OF EHR PAYMENT IN16 CENTIVES FOR PROVIDERS NOT RECEIVING 

17 OTHER INCENTIVE PAYMENTS. 

18 (a) STUDY.— 

19 (1) IN GENERAL.—The Secretary of Health and 

20 Human Services shall conduct a study to determine 

21 the extent to which and manner in which payment 

22 incentives (such as under title XVIII or XIX of the 

23 Social Security Act) and other funding for purposes 

24 of implementing and using certified EHR technology 

25 (as defined in section 3000 of the Public Health 


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1 Service Act) should be made available to health care 

2 providers who are receiving minimal or no payment 

3 incentives or other funding under this Act, under 

4 title XVIII or XIX of the Social Security Act, or 

5 otherwise, for such purposes. 

6 (2) DETAILS OF STUDY.—Such study shall in7 clude an examination of— 

8 (A) the adoption rates of certified EHR 

9 technology by such health care providers; 

10 (B) the clinical utility of such technology 

11 by such health care providers; 

12 (C) whether the services furnished by such 

13 health care providers are appropriate for or 

14 would benefit from the use of such technology; 

15 (D) the extent to which such health care 

16 providers work in settings that might otherwise 

17 receive an incentive payment or other funding 

18 under this Act, title XVIII or XIX of the Social 

19 Security Act, or otherwise; 

20 (E) the potential costs and the potential 

21 benefits of making payment incentives and 

22 other funding available to such health care pro23 viders; and 

24 (F) any other issues the Secretary deems 

25 to be appropriate. 


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1 (b) REPORT.—Not later than June 30, 2010, the 

2 Secretary shall submit to Congress a report on the find3 ings and conclusions of the study conducted under sub4 section (a). 

5 PART III—MEDICAID FUNDING 

6 SEC. 4321. MEDICAID PROVIDER HIT ADOPTION AND OPER7 ATION PAYMENTS; IMPLEMENTATION FUND8 ING. 

9 (a) IN GENERAL.—Section 1903 of the Social Secu10 rity Act (42 U.S.C. 1396b) is amended— 

11 (1) in subsection (a)(3)— 

12 (A) by striking ‘‘and’’ at the end of sub13 paragraph (D); 

14 (B) by striking ‘‘plus’’ at the end of sub15 paragraph (E) and inserting ‘‘and’’; and 

16 (C) by adding at the end the following new 

17 subparagraph: 

18 ‘‘(F)(i) 100 percent of so much of the 

19 sums expended during such quarter as are at20 tributable to payments for certified EHR tech21 nology (and support services including mainte22 nance and training that is for, or is necessary 

23 for the adoption and operation of, such tech24 nology) by Medicaid providers described in sub25 section (t)(1); and 


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1 ‘‘(ii) 90 percent of so much of the sums ex2 pended during such quarter as are attributable 

3 to payments for reasonable administrative ex4 penses related to the administration of pay5 ments described in clause (i) if the State meets 

6 the condition described in subsection (t)(9); 

7 plus’’; and 

8 (2) by inserting after subsection (s) the fol9 lowing new subsection: 

10 ‘‘(t)(1)(A) For purposes of subsection (a)(3)(F), the 

11 payments for certified EHR technology (and support serv12 ices including maintenance that is for, or is necessary for 

13 the operation of, such technology) by Medicaid providers 

14 described in this paragraph are payments made by the 

15 State in accordance with this subsection of the applicable 

16 percent (as specified in subparagraph (B)) of the net al17 lowable costs of Medicaid providers (as defined in para18 graph (2)) for such technology (and support services). 

19 ‘‘(B) For purposes of subparagraph (A), the applica20 ble percent is— 

21 ‘‘(i) in the case of a Medicaid provider de22 scribed in paragraph (2)(A), 85 percent; and 

23 ‘‘(ii) in the case of a Medicaid provider de24 scribed in paragraph (2)(B), 100 percent. 


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1 ‘‘(2) In this subsection and subsection (a)(3)(F), the 

2 term ‘Medicaid provider’ means— 

3 ‘‘(A) an eligible professional (as defined in 

4 paragraph (3)(B)) who is not hospital-based and has 

5 at least 30 percent of the professional’s patient vol6 ume (as estimated in accordance with standards es7 tablished by the Secretary) attributable to individ8 uals who are receiving medical assistance under this 

9 title; and 

10 ‘‘(B)(i) a children’s hospital, (ii) an acute-care 

11 hospital that is not described in clause (i) and that 

12 has at least 10 percent of the hospital’s patient vol13 ume (as estimated in accordance with standards es14 tablished by the Secretary) attributable to individ15 uals who are receiving medical assistance under this 

16 title, or (iii) a Federally-qualified health center or 

17 rural health clinic that has at least 30 percent of the 

18 center’s or clinic’s patient volume (as estimated in 

19 accordance with standards established by the Sec20 retary) attributable to individuals who are receiving 

21 medical assistance under this title. 

22 An eligible professional shall not qualify as a Medicaid 

23 provider under this subsection unless the eligible profes24 sional has waived, in a manner specified by the Secretary, 

25 any right to payment under section 1848(o) with respect 


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1 to the adoption or support of certified EHR technology 

2 by the professional. In applying clauses (ii) and (iii) of 

3 subparagraph (B), the standards established by the Sec4 retary for patient volume shall include individuals enrolled 

5 in a Medicaid managed care plan (under section 1903(m) 

6 or section 1932). 

7 ‘‘(3) In this subsection and subsection (a)(3)(F): 

8 ‘‘(A) The term ‘certified EHR technology’ 

9 means a qualified electronic health record (as de10 fined in 3000(13) of the Public Health Service Act) 

11 that is certified pursuant to section 3001(c)(5) of 

12 such Act as meeting standards adopted under sec13 tion 3004 of such Act that are applicable to the type 

14 of record involved (as determined by the Secretary, 

15 such as an ambulatory electronic health record for 

16 office-based physicians or an inpatient hospital elec17 tronic health record for hospitals). 

18 ‘‘(B) The term ‘eligible professional’ means a 

19 physician as defined in paragraphs (1) and (2) of 

20 section 1861(r), and includes a certified nurse mid21 wife and a nurse practitioner. 

22 ‘‘(C) The term ‘hospital-based’ means, with re23 spect to an eligible professional, a professional (such 

24 as a pathologist, anesthesiologist, or emergency phy25 sician) who furnishes substantially all of the individVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00561 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 ual’s professional services in a hospital setting 

2 (whether inpatient or outpatient) and through the 

3 use of the facilities and equipment, including com4 puter equipment, of the hospital. 

5 ‘‘(4)(A) The term ‘allowable costs’ means, with re6 spect to certified EHR technology of a Medicaid provider, 

7 costs of such technology (and support services including 

8 maintenance and training that is for, or is necessary for 

9 the adoption and operation of, such technology) as deter10 mined by the Secretary to be reasonable. 

11 ‘‘(B) The term ‘net allowable costs’ means allowable 

12 costs reduced by any payment that is made to the Med13 icaid provider involved from any other source that is di14 rectly attributable to payment for certified EHR tech15 nology or services described in subparagraph (A). 

16 ‘‘(C) In no case shall— 

17 ‘‘(i) the aggregate allowable costs under this 

18 subsection (covering one or more years) with respect 

19 to a Medicaid provider described in paragraph 

20 (2)(A) for purchase and initial implementation of 

21 certified EHR technology (and services described in 

22 subparagraph (A)) exceed $25,000 or include costs 

23 over a period of longer than 5 years; 

24 ‘‘(ii) for costs not described in clause (i) relat25 ing to the operation, maintenance, or use of certified 


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1 EHR technology, the annual allowable costs under 

2 this subsection with respect to such a Medicaid pro3 vider for costs not described in clause (i) for any 

4 year exceed $10,000; 

5 ‘‘(iii) payment described in paragraph (1) for 

6 costs described in clause (ii) be made with respect 

7 to such a Medicaid provider over a period of more 

8 than 5 years; 

9 ‘‘(iv) the aggregate allowable costs under this 

10 subsection with respect to such a Medicaid provider 

11 for all costs exceed $75,000; or 

12 ‘‘(v) the allowable costs, whether for purchase 

13 and initial implementation, maintenance, or other14 wise, for a Medicaid provider described in paragraph 

15 (2)(B)(iii) exceed such aggregate or annual limita16 tion as the Secretary shall establish, based on an 

17 amount determined by the Secretary as being ade18 quate to adopt and maintain certified EHR tech19 nology, consistent with paragraph (6). 

20 ‘‘(5) Payments described in paragraph (1) are not in 

21 accordance with this subsection unless the following re22 quirements are met: 

23 ‘‘(A) The State provides assurances satisfactory 

24 to the Secretary that amounts received under sub25 section (a)(3)(F) with respect to costs of a Medicaid 


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1 provider are paid directly to such provider without 

2 any deduction or rebate. 

3 ‘‘(B) Such Medicaid provider is responsible for 

4 payment of the costs described in such paragraph 

5 that are not provided under this title. 

6 ‘‘(C) With respect to payments to such Med7 icaid provider for costs other than costs related to 

8 the initial adoption of certified EHR technology, the 

9 Medicaid provider demonstrates meaningful use of 

10 certified EHR technology through a means that is 

11 approved by the State and acceptable to the Sec12 retary, and that may be based upon the methodolo13 gies applied under section 1848(o) or 1886(n). 

14 ‘‘(D) To the extent specified by the Secretary, 

15 the certified EHR technology is compatible with 

16 State or Federal administrative management sys17 tems. 

18 ‘‘(6)(A) In no case shall the payments described in 

19 paragraph (1), with respect to a hospital, exceed in the 

20 aggregate the product of— 

21 ‘‘(i) the overall hospital EHR amount for the 

22 hospital computed under subparagraph (B); and 

23 ‘‘(ii) the Medicaid share for such hospital com24 puted under subparagraph (C). 


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1 ‘‘(B) For purposes of this paragraph, the overall hos2 pital EHR amount, with respect to a hospital, is the sum 

3 of the applicable amounts specified in section 

4 1886(n)(2)(A) for such hospital for the first 4 payment 

5 years (as estimated by the Secretary) determined as if the 

6 Medicare share specified in clause (ii) of such section were 

7 1. The Secretary shall publish in the Federal Register the 

8 overall hospital EHR amount for each hospital eligible for 

9 payments under this subsection. In computing amounts 

10 under paragraph 1886(n)(2)(C) for payment years after 

11 the first payment year, the Secretary shall assume that 

12 in subsequent payment years discharges increase at the 

13 average annual rate of growth of the most recent 3 years 

14 for which discharge data are available per year. 

15 ‘‘(C) The Medicaid share computed under this sub16 paragraph, for a hospital for a period specified by the Sec17 retary, shall be calculated in the same manner as the 

18 Medicare share under section 1886(n)(2)(D) for such a 

19 hospital and period, except that there shall be substituted 

20 for the numerator under clause (i) of such section the 

21 amount that is equal to the number of inpatient-bed-days 

22 (as established by the Secretary) which are attributable 

23 to individuals who are receiving medical assistance under 

24 this title and who are not described in section 

25 1886(n)(2)(D)(i). In computing inpatient-bed-days under 


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1 the previous sentence, the Secretary shall take into ac2 count inpatient-bed-days attributable to inpatient-bed3 days that are paid for individuals enrolled in a Medicaid 

4 managed care plan (under section 1903(m) or section 

5 1932). 

6 ‘‘(7) With respect to health care providers other than 

7 hospitals, the Secretary shall ensure coordination of the 

8 different programs for payment of such health care pro9 viders for adoption or use of health information technology 

10 (including certified EHR technology), as well as payments 

11 for such health care providers provided under this title or 

12 title XVIII, to assure no duplication of funding. 

13 ‘‘(8) In carrying out paragraph (5)(C), the State and 

14 Secretary shall seek, to the maximum extent practicable, 

15 to avoid duplicative requirements from Federal and State 

16 Governments to demonstrate meaningful use of certified 

17 EHR technology under this title and title XVIII. In doing 

18 so, the Secretary may deem satisfaction of requirements 

19 for such meaningful use for a payment year under title 

20 XVIII to be sufficient to qualify as meaningful use under 

21 this subsection. The Secretary may also specify the report22 ing periods under this subsection in order to carry out this 

23 paragraph. 

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1 onstrate to the satisfaction of the Secretary, that the 

2 State— 

3 ‘‘(A) is using the funds provided for the pur4 poses of administering payments under this sub5 section, including tracking of meaningful use by 

6 Medicaid providers; 

7 ‘‘(B) is conducting adequate oversight of the 

8 program under this subsection, including routine 

9 tracking of meaningful use attestations and report10 ing mechanisms; and 

11 ‘‘(C) is pursuing initiatives to encourage the 

12 adoption of certified EHR technology to promote 

13 health care quality and the exchange of health care 

14 information under this title, subject to applicable 

15 laws and regulations governing such exchange. 

16 ‘‘(10) The Secretary shall periodically submit reports 

17 to the Committee on Energy and Commerce of the House 

18 of Representatives and the Committee on Finance of the 

19 Senate on status, progress, and oversight of payments 

20 under paragraph (1).’’. 

21 (b) IMPLEMENTATION FUNDING.—In addition to 

22 funds otherwise available, out of any funds in the Treas23 ury not otherwise appropriated, there are appropriated to 

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1 ment Account, $40,000,000 for each of fiscal years 2009 

2 through 2015 and $20,000,000 for each succeeding fiscal 

3 year through fiscal year 2019, which shall be available for 

4 purposes of carrying out the provisions of (and the amend5 ments made by) this part. Amounts appropriated under 

6 this subsection for a fiscal year shall be available until ex7 pended. 

8 SEC. 4322. MEDICAID NURSING FACILITY GRANT PROGRAM. 

9 (a) IN GENERAL.—The Secretary shall establish a 

10 grant program to enhance the meaningful use of certified 

11 electronic health records in nursing facilities. In estab12 lishing such program, the Secretary shall use payment in13 centives for meaningful use of certified EHR technology, 

14 similar to those specified in sections 4311, 4312, and 

15 4321, as appropriate. For the purpose of such incentives, 

16 the Secretary shall define meaningful use in a manner so 

17 as to be consistent with such sections to the extent prac18 ticable. The Secretary shall award funds to not more than 

19 10 States to carry out activities under this section. 

20 (b) ACTIVITIES.—The Secretary shall require a State 

21 participating in the grant program to— 

22 (1) provide payment incentives to nursing facili23 ties contingent on the demonstration of meaningful 

24 use of certified electronic health records; 


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1 (2) require participating nursing facilities to en2 gage in programs to improve the quality and coordi3 nation of care through the use of certified EHR 

4 technology, including for persons who are repeatedly 

5 admitted to acute care hospitals from the nursing 

6 facility and persons who receive services across mul7 tiple medical and social services providers (including 

8 facility and community-based providers); and 

9 (3) provide for training of appropriate per10 sonnel in the use of certified electronic health 

11 records. 

12 (c) TARGETING.—The Secretary shall require a State 

13 participating in the grant program to target nursing facili14 ties with a significant percentage (but not less than the 

15 average in the State) of the facility’s patient volume (as 

16 estimated in accordance with standards established by the 

17 Secretary) attributable to individuals who are receiving 

18 medical assistance under title XIX of the Social Security 

19 Act. 

20 (d) PRIORITY.—In making grants under this section, 

21 the Secretary shall give priority to States with a high pro22 portion of total national nursing facility days paid under 

23 title XIX of the Social Security Act. 

24 (e) LIMITATIONS ON USE OF FUNDS.—A State may 

25 not make payments to a nursing facility in excess of 90 


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1 percent of the costs of such nursing facility for the adop2 tion and operation of certified EHR technology. 

3 (f) APPLICATION.—No grant may be made to a State 

4 under this section unless the State submits an application 

5 to the Secretary in a form and manner specified by the 

6 Secretary. 

7 (g) REPORT.—Not later than the end of the 3-year 

8 period beginning on the date that grants under this sec9 tion are first awarded, the Secretary shall submit a report 

10 to Congress on the activities under this grant program and 

11 the effect of this program on quality and coordination of 

12 care under title XIX of the Social Security Act. 

13 (h) APPROPRIATION.—Out of any money in the 

14 Treasury not otherwise appropriated, there is appro15 priated to the Secretary of Health and Human Services 

16 to carry out this section $600,000,000, to remain available 

17 until expended. 

18 Subtitle D—Privacy 

19 SEC. 4400. DEFINITIONS. 

20 In this subtitle, except as specified otherwise: 

21 (1) BREACH.—The term ‘‘breach’’ means the 

22 unauthorized acquisition, access, use, or disclosure 

23 of protected health information which compromises 

24 the security, privacy, or integrity of protected health 

25 information maintained by or on behalf of a person. 


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1 Such term does not include any unintentional acqui2 sition, access, use, or disclosure of such information 

3 by an employee or agent of the covered entity or 

4 business associate involved if such acquisition, ac5 cess, use, or disclosure, respectively, was made in 

6 good faith and within the course and scope of the 

7 employment or other contractual relationship of such 

8 employee or agent, respectively, with the covered en9 tity or business associate and if such information is 

10 not further acquired, accessed, used, or disclosed by 

11 such employee or agent. 

12 (2) BUSINESS ASSOCIATE.—The term ‘‘business 

13 associate’’ has the meaning given such term in sec14 tion 160.103 of title 45, Code of Federal Regula15 tions. 

16 (3) COVERED ENTITY.—The term ‘‘covered en17 tity’’ has the meaning given such term in section 

18 160.103 of title 45, Code of Federal Regulations. 

19 (4) DISCLOSE.—The terms ‘‘disclose’’ and ‘‘dis20 closure’’ have the meaning given the term ‘‘disclo21 sure’’ in section 160.103 of title 45, Code of Federal 

22 Regulations. 

23 (5) ELECTRONIC HEALTH RECORD.—The term 

24 ‘‘electronic health record’’ means an electronic 

25 record of health-related information on an individual 


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1 that is created, gathered, managed, and consulted by 

2 authorized health care clinicians and staff. 

3 (6) HEALTH CARE OPERATIONS.—The term 

4 ‘‘health care operation’’ has the meaning given such 

5 term in section 164.501 of title 45, Code of Federal 

6 Regulations. 

7 (7) HEALTH CARE PROVIDER.—The term 

8 ‘‘health care provider’’ has the meaning given such 

9 term in section 160.103 of title 45, Code of Federal 

10 Regulations. 

11 (8) HEALTH PLAN.—The term ‘‘health plan’’ 

12 has the meaning given such term in section 1171(5) 

13 of the Social Security Act. 

14 (9) NATIONAL COORDINATOR.—The term ‘‘Na15 tional Coordinator’’ means the head of the Office of 

16 the National Coordinator for Health Information 

17 Technology established under section 3001(a) of the 

18 Public Health Service Act, as added by section 

19 4101. 

20 (10) PAYMENT.—The term ‘‘payment’’ has the 

21 meaning given such term in section 164.501 of title 

22 45, Code of Federal Regulations. 

23 (11) PERSONAL HEALTH RECORD.—The term 

24 ‘‘personal health record’’ means an electronic record 

25 of individually identifiable health information on an 


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1 individual that can be drawn from multiple sources 

2 and that is managed, shared, and controlled by or 

3 for the individual. 

4 (12) PROTECTED HEALTH INFORMATION.—The 

5 term ‘‘protected health information’’ has the mean6 ing given such term in section 160.103 of title 45, 

7 Code of Federal Regulations. 

8 (13) SECRETARY.—The term ‘‘Secretary’’ 

9 means the Secretary of Health and Human Services. 

10 (14) SECURITY.—The term ‘‘security’’ has the 

11 meaning given such term in section 164.304 of title 

12 45, Code of Federal Regulations. 

13 (15) STATE.—The term ‘‘State’’ means each of 

14 the several States, the District of Columbia, Puerto 

15 Rico, the Virgin Islands, Guam, American Samoa, 

16 and the Northern Mariana Islands. 

17 (16) TREATMENT.—The term ‘‘treatment’’ has 

18 the meaning given such term in section 164.501 of 

19 title 45, Code of Federal Regulations. 

20 (17) USE.—The term ‘‘use’’ has the meaning 

21 given such term in section 160.103 of title 45, Code 

22 of Federal Regulations. 

23 (18) VENDOR OF PERSONAL HEALTH

24 RECORDS.—The term ‘‘vendor of personal health 

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1 ty (as defined in paragraph (3)), that offers or 

2 maintains a personal health record. 

3 PART I—IMPROVED PRIVACY PROVISIONS AND 

4 SECURITY PROVISIONS 

5 SEC. 4401. APPLICATION OF SECURITY PROVISIONS AND 

6 PENALTIES TO BUSINESS ASSOCIATES OF 

7 COVERED ENTITIES; ANNUAL GUIDANCE ON 

8 SECURITY PROVISIONS. 

9 (a) APPLICATION OF SECURITY PROVISIONS.—Sec10 tions 164.308, 164.310, 164.312, and 164.316 of title 45, 

11 Code of Federal Regulations, shall apply to a business as12 sociate of a covered entity in the same manner that such 

13 sections apply to the covered entity. The additional re14 quirements of this title that relate to security and that 

15 are made applicable with respect to covered entities shall 

16 also be applicable to such a business associate and shall 

17 be incorporated into the business associate agreement be18 tween the business associate and the covered entity. 

19 (b) APPLICATION OF CIVIL AND CRIMINAL PEN20 ALTIES.—In the case of a business associate that violates 

21 any security provision specified in subsection (a), sections 

22 1176 and 1177 of the Social Security Act (42 U.S.C. 

23 1320d–5, 1320d–6) shall apply to the business associate 

24 with respect to such violation in the same manner such 


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1 sections apply to a covered entity that violates such secu2 rity provision. 

3 (c) ANNUAL GUIDANCE.—For the first year begin4 ning after the date of the enactment of this Act and annu5 ally thereafter, the Secretary of Health and Human Serv6 ices shall, in consultation with industry stakeholders, an7 nually issue guidance on the most effective and appro8 priate technical safeguards for use in carrying out the sec9 tions referred to in subsection (a) and the security stand10 ards in subpart C of part 164 of title 45, Code of Federal 

11 Regulations, including the use of standards developed 

12 under section 3002(b)(2)(B)(vi) of the Public Health 

13 Service Act, as added by section 4101, as such provisions 

14 are in effect as of the date before the enactment of this 

15 Act. 

16 SEC. 4402. NOTIFICATION IN THE CASE OF BREACH. 

17 (a) IN GENERAL.—A covered entity that accesses, 

18 maintains, retains, modifies, records, stores, destroys, or 

19 otherwise holds, uses, or discloses unsecured protected 

20 health information (as defined in subsection (h)(1)) shall, 

21 in the case of a breach of such information that is discov22 ered by the covered entity, notify each individual whose 

23 unsecured protected health information has been, or is 

24 reasonably believed by the covered entity to have been, 

25 accessed, acquired, or disclosed as a result of such breach. 


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1 (b) NOTIFICATION OF COVERED ENTITY BY BUSI2 NESS ASSOCIATE.—A business associate of a covered enti3 ty that accesses, maintains, retains, modifies, records, 

4 stores, destroys, or otherwise holds, uses, or discloses un5 secured protected health information shall, following the 

6 discovery of a breach of such information, notify the cov7 ered entity of such breach. Such notice shall include the 

8 identification of each individual whose unsecured protected 

9 health information has been, or is reasonably believed by 

10 the business associate to have been, accessed, acquired, 

11 or disclosed during such breach. 

12 (c) BREACHES TREATED AS DISCOVERED.—For pur13 poses of this section, a breach shall be treated as discov14 ered by a covered entity or by a business associate as of 

15 the first day on which such breach is known to such entity 

16 or associate, respectively, (including any person, other 

17 than the individual committing the breach, that is an em18 ployee, officer, or other agent of such entity or associate, 

19 respectively) or should reasonably have been known to 

20 such entity or associate (or person) to have occurred. 

21 (d) TIMELINESS OF NOTIFICATION.— 

22 (1) IN GENERAL.—Subject to subsection (g), all 

23 notifications required under this section shall be 

24 made without unreasonable delay and in no case 

25 later than 60 calendar days after the discovery of a 


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1 breach by the covered entity involved (or business 

2 associate involved in the case of a notification re3 quired under subsection (b)). 

4 (2) BURDEN OF PROOF.—The covered entity in5 volved (or business associate involved in the case of 

6 a notification required under subsection (b)), shall 

7 have the burden of demonstrating that all notifica8 tions were made as required under this part, includ9 ing evidence demonstrating the necessity of any 

10 delay. 

11 (e) METHODS OF NOTICE.— 

12 (1) INDIVIDUAL NOTICE.—Notice required 

13 under this section to be provided to an individual, 

14 with respect to a breach, shall be provided promptly 

15 and in the following form: 

16 (A) Written notification by first-class mail 

17 to the individual (or the next of kin of the indi18 vidual if the individual is deceased) at the last 

19 known address of the individual or the next of 

20 kin, respectively, or, if specified as a preference 

21 by the individual, by electronic mail. The notifi22 cation may be provided in one or more mailings 

23 as information is available. 

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1 cluding a phone number, email address, or any 

2 other form of appropriate communication) that 

3 precludes direct written (or, if specified by the 

4 individual under subparagraph (A), electronic) 

5 notification to the individual, a substitute form 

6 of notice shall be provided, including, in the 

7 case that there are 10 or more individuals for 

8 which there is insufficient or out-of-date contact 

9 information, a conspicuous posting for a period 

10 determined by the Secretary on the home page 

11 of the Web site of the covered entity involved or 

12 notice in major print or broadcast media, in13 cluding major media in geographic areas where 

14 the individuals affected by the breach likely re15 side. Such a notice in media or web posting will 

16 include a toll-free phone number where an indi17 vidual can learn whether or not the individual’s 

18 unsecured protected health information is pos19 sibly included in the breach. 

20 (C) In any case deemed by the covered en21 tity involved to require urgency because of pos22 sible imminent misuse of unsecured protected 

23 health information, the covered entity, in addi24 tion to notice provided under subparagraph (A), 


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1 may provide information to individuals by tele2 phone or other means, as appropriate. 

3 (2) MEDIA NOTICE.—Notice shall be provided 

4 to prominent media outlets serving a State or juris5 diction, following the discovery of a breach described 

6 in subsection (a), if the unsecured protected health 

7 information of more than 500 residents of such 

8 State or jurisdiction is, or is reasonably believed to 

9 have been, accessed, acquired, or disclosed during 

10 such breach. 

11 (3) NOTICE TO SECRETARY.—Notice shall be 

12 provided to the Secretary by covered entities of un13 secured protected health information that has been 

14 acquired or disclosed in a breach. If the breach was 

15 with respect to 500 or more individuals than such 

16 notice must be provided immediately. If the breach 

17 was with respect to less than 500 individuals, the 

18 covered entity involved may maintain a log of any 

19 such breach occurring and annually submit such a 

20 log to the Secretary documenting such breaches oc21 curring during the year involved. 

22 (4) POSTING ON HHS PUBLIC WEBSITE.—The 

23 Secretary shall make available to the public on the 

24 Internet website of the Department of Health and 

25 Human Services a list that identifies each covered 


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1 entity involved in a breach described in subsection 

2 (a) in which the unsecured protected health informa3 tion of more than 500 individuals is acquired or dis4 closed. 

5 (f) CONTENT OF NOTIFICATION.—Regardless of the 

6 method by which notice is provided to individuals under 

7 this section, notice of a breach shall include, to the extent 

8 possible, the following: 

9 (1) A brief description of what happened, in10 cluding the date of the breach and the date of the 

11 discovery of the breach, if known. 

12 (2) A description of the types of unsecured pro13 tected health information that were involved in the 

14 breach (such as full name, Social Security number, 

15 date of birth, home address, account number, or dis16 ability code). 

17 (3) The steps individuals should take to protect 

18 themselves from potential harm resulting from the 

19 breach. 

20 (4) A brief description of what the covered enti21 ty involved is doing to investigate the breach, to 

22 mitigate losses, and to protect against any further 

23 breaches. 

24 (5) Contact procedures for individuals to ask 

25 questions or learn additional information, which 


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1 shall include a toll-free telephone number, an e-mail 

2 address, Web site, or postal address. 

3 (g) DELAY OF NOTIFICATION AUTHORIZED FOR LAW

4 ENFORCEMENT PURPOSES.—If a law enforcement official 

5 determines that a notification, notice, or posting required 

6 under this section would impede a criminal investigation 

7 or cause damage to national security, such notification, 

8 notice, or posting shall be delayed in the same manner 

9 as provided under section 164.528(a)(2) of title 45, Code 

10 of Federal Regulations, in the case of a disclosure covered 

11 under such section. 

12 (h) UNSECURED PROTECTED HEALTH INFORMA13 TION.— 

14 (1) DEFINITION.— 

15 (A) IN GENERAL.—Subject to subpara16 graph (B), for purposes of this section, the 

17 term ‘‘unsecured protected health information’’ 

18 means protected health information that is not 

19 secured through the use of a technology or 

20 methodology specified by the Secretary in the 

21 guidance issued under paragraph (2). 

22 (B) EXCEPTION IN CASE TIMELY GUID23 ANCE NOT ISSUED.—In the case that the Sec24 retary does not issue guidance under paragraph 

25 (2) by the date specified in such paragraph, for 


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1 purposes of this section, the term ‘‘unsecured 

2 protected health information’’ shall mean pro3 tected health information that is not secured by 

4 a technology standard that renders protected 

5 health information unusable, unreadable, or in6 decipherable to unauthorized individuals and is 

7 developed or endorsed by a standards devel8 oping organization that is accredited by the 

9 American National Standards Institute. 

10 (2) GUIDANCE.—For purposes of paragraph (1) 

11 and section 407(f)(3), not later than the date that 

12 is 60 days after the date of the enactment of this 

13 Act, the Secretary shall, after consultation with 

14 stakeholders, issue (and annually update) guidance 

15 specifying the technologies and methodologies that 

16 render protected health information unusable, 

17 unreadable, or indecipherable to unauthorized indi18 viduals, including use of standards developed under 

19 section 3002(b)(2)(B)(vi) of the Public Health Serv20 ice Act, as added by section 4101. 

21 (i) REPORT TO CONGRESS ON BREACHES.— 

22 (1) IN GENERAL.—Not later than 12 months 

23 after the date of the enactment of this Act and an24 nually thereafter, the Secretary shall prepare and 

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1 mittee on Health, Education, Labor, and Pensions 

2 of the Senate and the Committee on Ways and 

3 Means and the Committee on Energy and Commerce 

4 of the House of Representatives a report containing 

5 the information described in paragraph (2) regard6 ing breaches for which notice was provided to the 

7 Secretary under subsection (e)(3). 

8 (2) INFORMATION.—The information described 

9 in this paragraph regarding breaches specified in 

10 paragraph (1) shall include— 

11 (A) the number and nature of such 

12 breaches; and 

13 (B) actions taken in response to such 

14 breaches. 

15 (j) REGULATIONS; EFFECTIVE DATE.—To carry out 

16 this section, the Secretary of Health and Human Services 

17 shall promulgate interim final regulations by not later 

18 than the date that is 180 days after the date of the enact19 ment of this title. The provisions of this section shall apply 

20 to breaches that are discovered on or after the date that 

21 is 30 days after the date of publication of such interim 

22 final regulations. 


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1 SEC. 4403. EDUCATION ON HEALTH INFORMATION PRI2 VACY. 

3 (a) REGIONAL OFFICE PRIVACY ADVISORS.—Not 

4 later than 6 months after the date of the enactment of 

5 this Act, the Secretary shall designate an individual in 

6 each regional office of the Department of Health and 

7 Human Services to offer guidance and education to cov8 ered entities, business associates, and individuals on their 

9 rights and responsibilities related to Federal privacy and 

10 security requirements for protected health information. 

11 (b) EDUCATION INITIATIVE ON USES OF HEALTH IN12 FORMATION.—Not later than 12 months after the date of 

13 the enactment of this Act, the Office for Civil Rights with14 in the Department of Health and Human Services shall 

15 develop and maintain a multi-faceted national education 

16 initiative to enhance public transparency regarding the 

17 uses of protected health information, including programs 

18 to educate individuals about the potential uses of their 

19 protected health information, the effects of such uses, and 

20 the rights of individuals with respect to such uses. Such 

21 programs shall be conducted in a variety of languages and 

22 present information in a clear and understandable man23 ner. 


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1 SEC. 4404. APPLICATION OF PRIVACY PROVISIONS AND 

2 PENALTIES TO BUSINESS ASSOCIATES OF 

3 COVERED ENTITIES. 

4 (a) APPLICATION OF CONTRACT REQUIREMENTS.— 

5 In the case of a business associate of a covered entity that 

6 obtains or creates protected health information pursuant 

7 to a written contract (or other written arrangement) de8 scribed in section 164.502(e)(2) of title 45, Code of Fed9 eral Regulations, with such covered entity, the business 

10 associate may use and disclose such protected health infor11 mation only if such use or disclosure, respectively, is in 

12 compliance with each applicable requirement of section 

13 164.504(e) of such title. The additional requirements of 

14 this subtitle that relate to privacy and that are made ap15 plicable with respect to covered entities shall also be appli16 cable to such a business associate and shall be incor17 porated into the business associate agreement between the 

18 business associate and the covered entity. 

19 (b) APPLICATION OF KNOWLEDGE ELEMENTS ASSO20 CIATED WITH CONTRACTS.—Section 164.504(e)(1)(ii) of 

21 title 45, Code of Federal Regulations, shall apply to a 

22 business associate described in subsection (a), with respect 

23 to compliance with such subsection, in the same manner 

24 that such section applies to a covered entity, with respect 

25 to compliance with the standards in sections 164.502(e) 

26 and 164.504(e) of such title, except that in applying such 


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1 section 164.504(e)(1)(ii) each reference to the business as2 sociate, with respect to a contract, shall be treated as a 

3 reference to the covered entity involved in such contract. 

4 (c) APPLICATION OF CIVIL AND CRIMINAL PEN5 ALTIES.—In the case of a business associate that violates 

6 any provision of subsection (a) or (b), the provisions of 

7 sections 1176 and 1177 of the Social Security Act (42 

8 U.S.C. 1320d–5, 1320d–6) shall apply to the business as9 sociate with respect to such violation in the same manner 

10 as such provisions apply to a person who violates a provi11 sion of part C of title XI of such Act. 

12 SEC. 4405. RESTRICTIONS ON CERTAIN DISCLOSURES AND 

13 SALES OF HEALTH INFORMATION; ACCOUNT14 ING OF CERTAIN PROTECTED HEALTH IN15 FORMATION DISCLOSURES; ACCESS TO CER16 TAIN INFORMATION IN ELECTRONIC FOR17 MAT. 

18 (a) REQUESTED RESTRICTIONS ON CERTAIN DIS19 CLOSURES OF HEALTH INFORMATION.—In the case that 

20 an individual requests under paragraph (a)(1)(i)(A) of 

21 section 164.522 of title 45, Code of Federal Regulations, 

22 that a covered entity restrict the disclosure of the pro23 tected health information of the individual, notwith24 standing paragraph (a)(1)(ii) of such section, the covered 

25 entity must comply with the requested restriction if— 


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1 (1) except as otherwise required by law, the dis2 closure is to a health plan for purposes of carrying 

3 out payment or health care operations (and is not 

4 for purposes of carrying out treatment); and 

5 (2) the protected health information pertains 

6 solely to a health care item or service for which the 

7 health care provider involved has been paid out of 

8 pocket in full. 

9 (b) DISCLOSURES REQUIRED TO BE LIMITED TO

10 THE LIMITED DATA SET OR THE MINIMUM NEC11 ESSARY.— 

12 (1) IN GENERAL.— 

13 (A) IN GENERAL.—Subject to subpara14 graph (B), a covered entity shall be treated as 

15 being in compliance with section 164.502(b)(1) 

16 of title 45, Code of Federal Regulations, with 

17 respect to the use, disclosure, or request of pro18 tected health information described in such sec19 tion, only if the covered entity limits such pro20 tected health information, to the extent prac21 ticable, to the limited data set (as defined in 

22 section 164.514(e)(2) of such title) or, if needed 

23 by such entity, to the minimum necessary to ac24 complish the intended purpose of such use, dis25 closure, or request, respectively. 


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1 (B) GUIDANCE.—Not later than 18 

2 months after the date of the enactment of this 

3 section, the Secretary shall issue guidance on 

4 what constitutes ‘‘minimum necessary’’ for pur5 poses of subpart E of part 164 of title 45, Code 

6 of Federal Regulation. In issuing such guidance 

7 the Secretary shall take into consideration the 

8 guidance under section 4424(c). 

9 (C) SUNSET.—Subparagraph (A) shall not 

10 apply on and after the effective date on which 

11 the Secretary issues the guidance under sub12 paragraph (B). 

13 (2) DETERMINATION OF MINIMUM NEC14 ESSARY.—For purposes of paragraph (1), in the 

15 case of the disclosure of protected health informa16 tion, the covered entity or business associate dis17 closing such information shall determine what con18 stitutes the minimum necessary to accomplish the 

19 intended purpose of such disclosure. 

20 (3) APPLICATION OF EXCEPTIONS.—The excep21 tions described in section 164.502(b)(2) of title 45, 

22 Code of Federal Regulations, shall apply to the re23 quirement under paragraph (1) as of the effective 

24 date described in section 4423 in the same manner 


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1 that such exceptions apply to section 164.502(b)(1) 

2 of such title before such date. 

3 (4) RULE OF CONSTRUCTION.—Nothing in this 

4 subsection shall be construed as affecting the use, 

5 disclosure, or request of protected health information 

6 that has been de-identified. 

7 (c) ACCOUNTING OF CERTAIN PROTECTED HEALTH

8 INFORMATION DISCLOSURES REQUIRED IF COVERED EN9 TITY USES ELECTRONIC HEALTH RECORD.— 

10 (1) IN GENERAL.—In applying section 164.528 

11 of title 45, Code of Federal Regulations, in the case 

12 that a covered entity uses or maintains an electronic 

13 health record with respect to protected health infor14 mation— 

15 (A) the exception under paragraph 

16 (a)(1)(i) of such section shall not apply to dis17 closures through an electronic health record 

18 made by such entity of such information; and 

19 (B) an individual shall have a right to re20 ceive an accounting of disclosures described in 

21 such paragraph of such information made by 

22 such covered entity during only the three years 

23 prior to the date on which the accounting is re24 quested. 


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1 (2) REGULATIONS.—The Secretary shall pro2 mulgate regulations on what information shall be 

3 collected about each disclosure referred to in para4 graph (1)(A) not later than 18 months after the 

5 date on which the Secretary adopts standards on ac6 counting for disclosure described in the section 

7 3002(b)(2)(B)(iv) of the Public Health Service Act, 

8 as added by section 4101. Such regulations shall 

9 only require such information to be collected through 

10 an electronic health record in a manner that takes 

11 into account the interests of individuals in learning 

12 the circumstances under which their protected health 

13 information is being disclosed and takes into account 

14 the administrative burden of accounting for such 

15 disclosures. 

16 (3) CONSTRUCTION.—Nothing in this sub17 section shall be construed as requiring a covered en18 tity to account for disclosures of protected health in19 formation that are not made by such covered entity 

20 or by a business associate acting on behalf of the 

21 covered entity. 

22 (4) EFFECTIVE DATE.— 

23 (A) CURRENT USERS OF ELECTRONIC

24 RECORDS.—In the case of a covered entity inso25 far as it acquired an electronic health record as 


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1 of January 1, 2009, paragraph (1) shall apply 

2 to disclosures, with respect to protected health 

3 information, made by the covered entity from 

4 such a record on and after January 1, 2014. 

5 (B) OTHERS.—In the case of a covered en6 tity insofar as it acquires an electronic health 

7 record after January 1, 2009, paragraph (1) 

8 shall apply to disclosures, with respect to pro9 tected health information, made by the covered 

10 entity from such record on and after the later 

11 of the following: 

12 (i) January 1, 2011; or 

13 (ii) the date that it acquires an elec14 tronic health record. 

15 (d) REVIEW OF HEALTH CARE OPERATIONS.—Not 

16 later than 18 months after the date of the enactment of 

17 this title, the Secretary shall promulgate regulations to 

18 eliminate from the definition of health care operations 

19 under section 164.501 of title 45, Code of Federal Regula20 tions, those activities that can reasonably and efficiently 

21 be conducted through the use of information that is de22 identified (in accordance with the requirements of section 

23 164.514(b) of such title) or that should require a valid 

24 authorization for use or disclosure. In promulgating such 

25 regulations, the Secretary may choose to narrow or clarify 


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1 activities that the Secretary chooses to retain in the defini2 tion of health care operations and the Secretary shall take 

3 into account the report under section 424(d). In such reg4 ulations the Secretary shall specify the date on which such 

5 regulations shall apply to disclosures made by a covered 

6 entity, but in no case would such date be sooner than the 

7 date that is 24 months after the date of the enactment 

8 of this section. 

9 (e) PROHIBITION ON SALE OF ELECTRONIC HEALTH

10 RECORDS OR PROTECTED HEALTH INFORMATION.— 

11 (1) IN GENERAL.—Except as provided in para12 graph (2), a covered entity or business associate 

13 shall not directly or indirectly receive remuneration 

14 in exchange for any protected health information of 

15 an individual unless the covered entity obtained from 

16 the individual, in accordance with section 164.508 of 

17 title 45, Code of Federal Regulations, a valid au18 thorization that includes, in accordance with such 

19 section, a specification of whether the protected 

20 health information can be further exchanged for re21 muneration by the entity receiving protected health 

22 information of that individual. 

23 (2) EXCEPTIONS.—Paragraph (1) shall not 

24 apply in the following cases: 


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1 (A) The purpose of the exchange is for re2 search or public health activities (as described 

3 in sections 164.501, 164.512(i), and 164.512(b) 

4 of title 45, Code of Federal Regulations) and 

5 the price charged reflects the costs of prepara6 tion and transmittal of the data for such pur7 pose. 

8 (B) The purpose of the exchange is for the 

9 treatment of the individual and the price 

10 charges reflects not more than the costs of 

11 preparation and transmittal of the data for 

12 such purpose. 

13 (C) The purpose of the exchange is the 

14 health care operation specifically described in 

15 subparagraph (iv) of paragraph (6) of the defi16 nition of health care operations in section 

17 164.501 of title 45, Code of Federal Regula18 tions. 

19 (D) The purpose of the exchange is for re20 muneration that is provided by a covered entity 

21 to a business associate for activities involving 

22 the exchange of protected health information 

23 that the business associate undertakes on behalf 

24 of and at the specific request of the covered en25 tity pursuant to a business associate agreement. 


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1 (E) The purpose of the exchange is to pro2 vide an individual with a copy of the individ3 ual’s protected health information pursuant to 

4 section 164.524 of title 45, Code of Federal 

5 Regulations. 

6 (F) The purpose of the exchange is other7 wise determined by the Secretary in regulations 

8 to be similarly necessary and appropriate as the 

9 exceptions provided in subparagraphs (A) 

10 through (E). 

11 (3) REGULATIONS.—The Secretary shall pro12 mulgate regulations to carry out paragraph (this 

13 subsection, including exceptions described in para14 graph (2), not later than 18 months after the date 

15 of the enactment of this title. 

16 (4) EFFECTIVE DATE.—Paragraph (1) shall 

17 apply to exchanges occurring on or after the date 

18 that is 6 months after the date of the promulgation 

19 of final regulations implementing this subsection. 

20 (f) ACCESS TO CERTAIN INFORMATION IN ELEC21 TRONIC FORMAT.—In applying section 164.524 of title 

22 45, Code of Federal Regulations, in the case that a cov23 ered entity uses or maintains an electronic health record 

24 with respect to protected health information of an indi25 vidual— 


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1 (1) the individual shall have a right to obtain 

2 from such covered entity a copy of such information 

3 in an electronic format; and 

4 (2) notwithstanding paragraph (c)(4) of such 

5 section, any fee that the covered entity may impose 

6 for providing such individual with a copy of such in7 formation (or a summary or explanation of such in8 formation) if such copy (or summary or explanation) 

9 is in an electronic form shall not be greater than the 

10 entity’s labor costs in responding to the request for 

11 the copy (or summary or explanation). 

12 (g) CLARIFICATION.—Nothing in this subtitle shall 

13 constitute a waiver of any privilege otherwise applicable 

14 to an individual with respect to the protected health infor15 mation of such individual. 

16 SEC. 4406. CONDITIONS ON CERTAIN CONTACTS AS PART 

17 OF HEALTH CARE OPERATIONS. 

18 (a) MARKETING.— 

19 (1) IN GENERAL.—A communication by a cov20 ered entity or business associate that is about a 

21 product or service and that encourages recipients of 

22 the communication to purchase or use the product 

23 or service shall not be considered a health care oper24 ation for purposes of subpart E of part 164 of title 

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1 nication is made as described in subparagraph (i), 

2 (ii), or (iii) of paragraph (1) of the definition of 

3 marketing in section 164.501 of such title. 

4 (2) PAYMENT FOR CERTAIN COMMUNICA5 TIONS.—A covered entity or business associate may 

6 not receive direct or indirect payment in exchange 

7 for making any communication described in sub8 paragraph (i), (ii), or (iii) of paragraph (1) of the 

9 definition of marketing in section 164.501 of title 

10 45, Code of Federal Regulations, except— 

11 (A) a business associate of a covered entity 

12 may receive payment from the covered entity 

13 for making any such communication on behalf 

14 of the covered entity that is consistent with the 

15 written contract (or other written arrangement) 

16 described in section 164.502(e)(2) of such title 

17 between such business associate and covered en18 tity; or 

19 (B) a covered entity may receive payment 

20 in exchange for making any such communica21 tion if the entity obtains from the recipient of 

22 the communication, in accordance with section 

23 164.508 of title 45, Code of Federal Regula24 tions, a valid authorization (as described in 


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1 paragraph (b) of such section) with respect to 

2 such communication. 

3 (b) FUNDRAISING.—Fundraising for the benefit of a 

4 covered entity shall not be considered a health care oper5 ation for purposes of section 164.501 of title 45, Code of 

6 Federal Regulations. 

7 (c) EFFECTIVE DATE.—This section shall apply to 

8 contracting occurring on or after the effective date speci9 fied under section 4423. 

10 SEC. 4407. TEMPORARY BREACH NOTIFICATION REQUIRE11 MENT FOR VENDORS OF PERSONAL HEALTH 

12 RECORDS AND OTHER NON-HIPAA COVERED 

13 ENTITIES. 

14 (a) IN GENERAL.—In accordance with subsection (c), 

15 each vendor of personal health records, following the dis16 covery of a breach of security of unsecured PHR identifi17 able health information that is in a personal health record 

18 maintained or offered by such vendor, and each entity de19 scribed in clause (ii) or (iii) of section 4424(b)(1)(A), fol20 lowing the discovery of a breach of security of such infor21 mation that is obtained through a product or service pro22 vided by such entity, shall— 

23 (1) notify each individual who is a citizen or 

24 resident of the United States whose unsecured PHR 

25 identifiable health information was acquired by an 


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1 unauthorized person as a result of such a breach of 

2 security; and 

3 (2) notify the Federal Trade Commission. 

4 (b) NOTIFICATION BY THIRD PARTY SERVICE PRO5 VIDERS.—A third party service provider that provides 

6 services to a vendor of personal health records or to an 

7 entity described in clause (ii) or (iii) of section 

8 4424(b)(1)(A) in connection with the offering or mainte9 nance of a personal health record or a related product or 

10 service and that accesses, maintains, retains, modifies, 

11 records, stores, destroys, or otherwise holds, uses, or dis12 closes unsecured PHR identifiable health information in 

13 such a record as a result of such services shall, following 

14 the discovery of a breach of security of such information, 

15 notify such vendor or entity, respectively, of such breach. 

16 Such notice shall include the identification of each indi17 vidual whose unsecured PHR identifiable health informa18 tion has been, or is reasonably believed to have been, 

19 accessed, acquired, or disclosed during such breach. 

20 (c) APPLICATION OF REQUIREMENTS FOR TIMELI21 NESS, METHOD, AND CONTENT OF NOTIFICATIONS.— 

22 Subsections (c), (d), (e), and (f) of section 402 shall apply 

23 to a notification required under subsection (a) and a ven24 dor of personal health records, an entity described in sub25 section (a) and a third party service provider described 


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1 in subsection (b), with respect to a breach of security 

2 under subsection (a) of unsecured PHR identifiable health 

3 information in such records maintained or offered by such 

4 vendor, in a manner specified by the Federal Trade Com5 mission. 

6 (d) NOTIFICATION OF THE SECRETARY.—Upon re7 ceipt of a notification of a breach of security under sub8 section (a)(2), the Federal Trade Commission shall notify 

9 the Secretary of such breach. 

10 (e) ENFORCEMENT.—A violation of subsection (a) or 

11 (b) shall be treated as an unfair and deceptive act or prac12 tice in violation of a regulation under section 18(a)(1)(B) 

13 of the Federal Trade Commission Act (15 U.S.C. 

14 57a(a)(1)(B)) regarding unfair or deceptive acts or prac15 tices. 

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

17 (1) BREACH OF SECURITY.—The term ‘‘breach 

18 of security’’ means, with respect to unsecured PHR 

19 identifiable health information of an individual in a 

20 personal health record, acquisition of such informa21 tion without the authorization of the individual. 

22 (2) PHR IDENTIFIABLE HEALTH INFORMA23 TION.—The term ‘‘PHR identifiable health informa24 tion’’ means individually identifiable health informa25 tion, as defined in section 1171(6) of the Social SeVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00599 Fmt 6652 Sfmt 6401 E:\BILLS\H1.PP H1

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1 curity Act (42 U.S.C. 1320d(6)), and includes, with 

2 respect to an individual, information— 

3 (A) that is provided by or on behalf of the 

4 individual; and 

5 (B) that identifies the individual or with 

6 respect to which there is a reasonable basis to 

7 believe that the information can be used to 

8 identify the individual. 

9 (3) UNSECURED PHR IDENTIFIABLE HEALTH

10 INFORMATION.— 

11 (A) IN GENERAL.—Subject to subpara12 graph (B), the term ‘‘unsecured PHR identifi13 able health information’’ means PHR identifi14 able health information that is not protected 

15 through the use of a technology or methodology 

16 specified by the Secretary in the guidance 

17 issued under section 4402(h)(2). 

18 (B) EXCEPTION IN CASE TIMELY GUID19 ANCE NOT ISSUED.—In the case that the Sec20 retary does not issue guidance under section 

21 4402(h)(2) by the date specified in such sec22 tion, for purposes of this section, the term ‘‘un23 secured PHR identifiable health information’’ 

24 shall mean PHR identifiable health information 

25 that is not secured by a technology standard 


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1 that renders protected health information unus2 able, unreadable, or indecipherable to unauthor3 ized individuals and that is developed or en4 dorsed by a standards developing organization 

5 that is accredited by the American National 

6 Standards Institute. 

7 (g) REGULATIONS; EFFECTIVE DATE; SUNSET.— 

8 (1) REGULATIONS; EFFECTIVE DATE.—To 

9 carry out this section, the Secretary of Health and 

10 Human Services shall promulgate interim final regu11 lations by not later than the date that is 180 days 

12 after the date of the enactment of this section. The 

13 provisions of this section shall apply to breaches of 

14 security that are discovered on or after the date that 

15 is 30 days after the date of publication of such in16 terim final regulations. 

17 (2) SUNSET.—The provisions of this section 

18 shall not apply to breaches of security occurring on 

19 or after the earlier of the following the dates: 

20 (A) The date on which a standard relating 

21 to requirements for entities that are not covered 

22 entities that includes requirements relating to 

23 breach notification has been promulgated by the 

24 Secretary. 


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1 (B) The date on which a standard relating 

2 to requirements for entities that are not covered 

3 entities that includes requirements relating to 

4 breach notification has been promulgated by the 

5 Federal Trade Commission and has taken ef6 fect. 

7 SEC. 4408. BUSINESS ASSOCIATE CONTRACTS REQUIRED 

8 FOR CERTAIN ENTITIES. 

9 Each organization, with respect to a covered entity, 

10 that provides data transmission of protected health infor11 mation to such entity (or its business associate) and that 

12 requires access on a routine basis to such protected health 

13 information, such as a Health Information Exchange Or14 ganization, Regional Health Information Organization, E15 prescribing Gateway, or each vendor that contracts with 

16 a covered entity to allow that covered entity to offer a per17 sonal health record to patients as part of its electronic 

18 health record, is required to enter into a written contract 

19 (or other written arrangement) described in section 

20 164.502(e)(2) of title 45, Code of Federal Regulations and 

21 a written contract (or other arrangement) described in 

22 section 164.308(b) of such title, with such entity and shall 

23 be treated as a business associate of the covered entity 

24 for purposes of the provisions of this subtitle and subparts 

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1 tions, as such provisions are in effect as of the date of 

2 enactment of this title. 

3 SEC. 4409. CLARIFICATION OF APPLICATION OF WRONGFUL 

4 DISCLOSURES CRIMINAL PENALTIES. 

5 Section 1177(a) of the Social Security Act (42 U.S.C. 

6 1320d–6(a)) is amended by adding at the end the fol7 lowing new sentence: ‘‘For purposes of the previous sen8 tence, a person (including an employee or other individual) 

9 shall be considered to have obtained or disclosed individ10 ually identifiable health information in violation of this 

11 part if the information is maintained by a covered entity 

12 (as defined in the HIPAA privacy regulation described in 

13 section 1180(b)(3)) and the individual obtained or dis14 closed such information without authorization.’’. 

15 SEC. 4410. IMPROVED ENFORCEMENT. 

16 (a) IN GENERAL.—Section 1176 of the Social Secu17 rity Act (42 U.S.C. 1320d–5) is amended— 

18 (1) in subsection (b)(1), by striking ‘‘the act 

19 constitutes an offense punishable under section 

20 1177’’ and inserting ‘‘a penalty has been imposed 

21 under section 1177 with respect to such act’’; and 

22 (2) by adding at the end the following new sub23 section: 

24 ‘‘(c) NONCOMPLIANCE DUE TO WILLFUL NE25 GLECT.— 


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1 ‘‘(1) IN GENERAL.—A violation of a provision 

2 of this part due to willful neglect is a violation for 

3 which the Secretary is required to impose a penalty 

4 under subsection (a)(1). 

5 ‘‘(2) REQUIRED INVESTIGATION.—For purposes 

6 of paragraph (1), the Secretary shall formally inves7 tigate any complaint of a violation of a provision of 

8 this part if a preliminary investigation of the facts 

9 of the complaint indicate such a possible violation 

10 due to willful neglect.’’. 

11 (b) EFFECTIVE DATE; REGULATIONS.— 

12 (1) The amendments made by subsection (a) 

13 shall apply to penalties imposed on or after the date 

14 that is 24 months after the date of the enactment 

15 of this title. 

16 (2) Not later than 18 months after the date of 

17 the enactment of this title, the Secretary of Health 

18 and Human Services shall promulgate regulations to 

19 implement such amendments. 

20 (c) DISTRIBUTION OF CERTAIN CIVIL MONETARY

21 PENALTIES COLLECTED.— 

22 (1) IN GENERAL.—Subject to the regulation 

23 promulgated pursuant to paragraph (3), any civil 

24 monetary penalty or monetary settlement collected 

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1 title or section 1176 of the Social Security Act (42 

2 U.S.C. 1320d–5) insofar as such section relates to 

3 privacy or security shall be transferred to the Office 

4 of Civil Rights of the Department of Health and 

5 Human Services to be used for purposes of enforcing 

6 the provisions of this subtitle and subparts C and E 

7 of part 164 of title 45, Code of Federal Regulations, 

8 as such provisions are in effect as of the date of en9 actment of this Act. 

10 (2) GAO REPORT.—Not later than 18 months 

11 after the date of the enactment of this title, the 

12 Comptroller General shall submit to the Secretary a 

13 report including recommendations for a methodology 

14 under which an individual who is harmed by an act 

15 that constitutes an offense referred to in paragraph 

16 (1) may receive a percentage of any civil monetary 

17 penalty or monetary settlement collected with re18 spect to such offense. 

19 (3) ESTABLISHMENT OF METHODOLOGY TO

20 DISTRIBUTE PERCENTAGE OF CMPS COLLECTED TO

21 HARMED INDIVIDUALS.—Not later than 3 years 

22 after the date of the enactment of this title, the Sec23 retary shall establish by regulation and based on the 

24 recommendations submitted under paragraph (2), a 

25 methodology under which an individual who is 


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1 harmed by an act that constitutes an offense re2 ferred to in paragraph (1) may receive a percentage 

3 of any civil monetary penalty or monetary settlement 

4 collected with respect to such offense. 

5 (4) APPLICATION OF METHODOLOGY.—The 

6 methodology under paragraph (3) shall be applied 

7 with respect to civil monetary penalties or monetary 

8 settlements imposed on or after the effective date of 

9 the regulation. 

10 (d) TIERED INCREASE IN AMOUNT OF CIVIL MONE11 TARY PENALTIES.— 

12 (1) IN GENERAL.—Section 1176(a)(1) of the 

13 Social Security Act (42 U.S.C. 1320d–5(a)(1)) is 

14 amended by striking ‘‘who violates a provision of 

15 this part a penalty of not more than’’ and all that 

16 follows and inserting the following: ‘‘who violates a 

17 provision of this part— 

18 ‘‘(A) in the case of a violation of such pro19 vision in which it is established that the person 

20 did not know (and by exercising reasonable dili21 gence would not have known) that such person 

22 violated such provision, a penalty for each such 

23 violation of an amount that is at least the 

24 amount described in paragraph (3)(A) but not 


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1 to exceed the amount described in paragraph 

2 (3)(D); 

3 ‘‘(B) in the case of a violation of such pro4 vision in which it is established that the viola5 tion was due to reasonable cause and not to 

6 willful neglect, a penalty for each such violation 

7 of an amount that is at least the amount de8 scribed in paragraph (3)(B) but not to exceed 

9 the amount described in paragraph (3)(D); and 

10 ‘‘(C) in the case of a violation of such pro11 vision in which it is established that the viola12 tion was due to willful neglect— 

13 ‘‘(i) if the violation is corrected as de14 scribed in subsection (b)(3)(A), a penalty 

15 in an amount that is at least the amount 

16 described in paragraph (3)(C) but not to 

17 exceed the amount described in paragraph 

18 (3)(D); and 

19 ‘‘(ii) if the violation is not corrected 

20 as described in such subsection, a penalty 

21 in an amount that is at least the amount 

22 described in paragraph (3)(D). 

23 In determining the amount of a penalty under 

24 this section for a violation, the Secretary shall 

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1 tent of the violation and the nature and extent 

2 of the harm resulting from such violation.’’. 

3 (2) TIERS OF PENALTIES DESCRIBED.—Section 

4 1176(a) of such Act (42 U.S.C. 1320d–5(a)) is fur5 ther amended by adding at the end the following 

6 new paragraph: 

7 ‘‘(3) TIERS OF PENALTIES DESCRIBED.—For 

8 purposes of paragraph (1), with respect to a viola9 tion by a person of a provision of this part— 

10 ‘‘(A) the amount described in this subpara11 graph is $100 for each such violation, except 

12 that the total amount imposed on the person 

13 for all such violations of an identical require14 ment or prohibition during a calendar year may 

15 not exceed $25,000; 

16 ‘‘(B) the amount described in this subpara17 graph is $1,000 for each such violation, except 

18 that the total amount imposed on the person 

19 for all such violations of an identical require20 ment or prohibition during a calendar year may 

21 not exceed $100,000; 

22 ‘‘(C) the amount described in this subpara23 graph is $10,000 for each such violation, except 

24 that the total amount imposed on the person 

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1 ment or prohibition during a calendar year may 

2 not exceed $250,000; and 

3 ‘‘(D) the amount described in this sub4 paragraph is $50,000 for each such violation, 

5 except that the total amount imposed on the 

6 person for all such violations of an identical re7 quirement or prohibition during a calendar year 

8 may not exceed $1,500,000.’’. 

9 (3) CONFORMING AMENDMENTS.—Section 

10 1176(b) of such Act (42 U.S.C. 1320d–5(b)) is 

11 amended— 

12 (A) by striking paragraph (2) and redesig13 nating paragraphs (3) and (4) as paragraphs 

14 (2) and (3), respectively; and 

15 (B) in paragraph (2), as so redesignated— 

16 (i) in subparagraph (A), by striking 

17 ‘‘in subparagraph (B), a penalty may not 

18 be imposed under subsection (a) if’’ and all 

19 that follows through ‘‘the failure to comply 

20 is corrected’’ and inserting ‘‘in subpara21 graph (B) or subsection (a)(1)(C), a pen22 alty may not be imposed under subsection 

23 (a) if the failure to comply is corrected’’; 

24 and 


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1 (ii) in subparagraph (B), by striking 

2 ‘‘(A)(ii)’’ and inserting ‘‘(A)’’ each place it 

3 appears. 

4 (4) EFFECTIVE DATE.—The amendments made 

5 by this subsection shall apply to violations occurring 

6 after the date of the enactment of this title. 

7 (e) ENFORCEMENT THROUGH STATE ATTORNEYS

8 GENERAL.— 

9 (1) IN GENERAL.—Section 1176 of the Social 

10 Security Act (42 U.S.C. 1320d–5) is amended by 

11 adding at the end the following new subsection: 

12 ‘‘(c) ENFORCEMENT BY STATE ATTORNEYS GEN13 ERAL.— 

14 ‘‘(1) CIVIL ACTION.—Except as provided in 

15 subsection (b), in any case in which the attorney 

16 general of a State has reason to believe that an in17 terest of one or more of the residents of that State 

18 has been or is threatened or adversely affected by 

19 any person who violates a provision of this part, the 

20 attorney general of the State, as parens patriae, may 

21 bring a civil action on behalf of such residents of the 

22 State in a district court of the United States of ap23 propriate jurisdiction— 

24 ‘‘(A) to enjoin further such violation by the 

25 defendant; or 


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1 ‘‘(B) to obtain damages on behalf of such 

2 residents of the State, in an amount equal to 

3 the amount determined under paragraph (2). 

4 ‘‘(2) STATUTORY DAMAGES.— 

5 ‘‘(A) IN GENERAL.—For purposes of para6 graph (1)(B), the amount determined under 

7 this paragraph is the amount calculated by mul8 tiplying the number of violations by up to $100. 

9 For purposes of the preceding sentence, in the 

10 case of a continuing violation, the number of 

11 violations shall be determined consistent with 

12 the HIPAA privacy regulations (as defined in 

13 section 1180(b)(3)) for violations of subsection 

14 (a). 

15 ‘‘(B) LIMITATION.—The total amount of 

16 damages imposed on the person for all viola17 tions of an identical requirement or prohibition 

18 during a calendar year may not exceed $25,000. 

19 ‘‘(C) REDUCTION OF DAMAGES.—In as20 sessing damages under subparagraph (A), the 

21 court may consider the factors the Secretary 

22 may consider in determining the amount of a 

23 civil money penalty under subsection (a) under 

24 the HIPAA privacy regulations. 


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1 ‘‘(3) ATTORNEY FEES.—In the case of any suc2 cessful action under paragraph (1), the court, in its 

3 discretion, may award the costs of the action and 

4 reasonable attorney fees to the State. 

5 ‘‘(4) NOTICE TO SECRETARY.—The State shall 

6 serve prior written notice of any action under para7 graph (1) upon the Secretary and provide the Sec8 retary with a copy of its complaint, except in any 

9 case in which such prior notice is not feasible, in 

10 which case the State shall serve such notice imme11 diately upon instituting such action. The Secretary 

12 shall have the right— 

13 ‘‘(A) to intervene in the action; 

14 ‘‘(B) upon so intervening, to be heard on 

15 all matters arising therein; and 

16 ‘‘(C) to file petitions for appeal. 

17 ‘‘(5) CONSTRUCTION.—For purposes of bring18 ing any civil action under paragraph (1), nothing in 

19 this section shall be construed to prevent an attor20 ney general of a State from exercising the powers 

21 conferred on the attorney general by the laws of that 

22 State. 

23 ‘‘(6) VENUE; SERVICE OF PROCESS.— 

24 ‘‘(A) VENUE.—Any action brought under 

25 paragraph (1) may be brought in the district 


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1 court of the United States that meets applicable 

2 requirements relating to venue under section 

3 1391 of title 28, United States Code. 

4 ‘‘(B) SERVICE OF PROCESS.—In an action 

5 brought under paragraph (1), process may be 

6 served in any district in which the defendant— 

7 ‘‘(i) is an inhabitant; or 

8 ‘‘(ii) maintains a physical place of 

9 business. 

10 ‘‘(7) LIMITATION ON STATE ACTION WHILE

11 FEDERAL ACTION IS PENDING.—If the Secretary has 

12 instituted an action against a person under sub13 section (a) with respect to a specific violation of this 

14 part, no State attorney general may bring an action 

15 under this subsection against the person with re16 spect to such violation during the pendency of that 

17 action. 

18 ‘‘(8) APPLICATION OF CMP STATUTE OF LIMI19 TATION.—A civil action may not be instituted with 

20 respect to a violation of this part unless an action 

21 to impose a civil money penalty may be instituted 

22 under subsection (a) with respect to such violation 

23 consistent with the second sentence of section 

24 1128A(c)(1).’’. 


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1 (2) CONFORMING AMENDMENTS.—Subsection 

2 (b) of such section, as amended by subsection (d)(3), 

3 is amended— 

4 (A) in paragraph (1), by striking ‘‘A pen5 alty may not be imposed under subsection (a)’’ 

6 and inserting ‘‘No penalty may be imposed 

7 under subsection (a) and no damages obtained 

8 under subsection (c)’’; 

9 (B) in paragraph (2)(A)— 

10 (i) in the matter before clause (i), by 

11 striking ‘‘a penalty may not be imposed 

12 under subsection (a)’’ and inserting ‘‘no 

13 penalty may be imposed under subsection 

14 (a) and no damages obtained under sub15 section (c)’’; and 

16 (ii) in clause (ii), by inserting ‘‘or 

17 damages’’ after ‘‘the penalty’’; 

18 (C) in paragraph (2)(B)(i), by striking 

19 ‘‘The period’’ and inserting ‘‘With respect to 

20 the imposition of a penalty by the Secretary 

21 under subsection (a), the period’’; and 

22 (D) in paragraph (3), by inserting ‘‘and 

23 any damages under subsection (c)’’ after ‘‘any 

24 penalty under subsection (a)’’. 


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1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to violations occurring 

3 after the date of the enactment of this Act. 

4 (f) ALLOWING CONTINUED USE OF CORRECTIVE AC5 TION.—Such section is further amended by adding at the 

6 end the following new subsection: 

7 ‘‘(d) ALLOWING CONTINUED USE OF CORRECTIVE

8 ACTION.—Nothing in this section shall be construed as 

9 preventing the Office of Civil Rights of the Department 

10 of Health and Human Services from continuing, in its dis11 cretion, to use corrective action without a penalty in cases 

12 where the person did not know (and by exercising reason13 able diligence would not have known) of the violation in14 volved.’’. 

15 SEC. 4411. AUDITS. 

16 The Secretary shall provide for periodic audits to en17 sure that covered entities and business associates that are 

18 subject to the requirements of this subtitle and subparts 

19 C and E of part 164 of title 45, Code of Federal Regula20 tions, as such provisions are in effect as of the date of 

21 enactment of this Act, comply with such requirements. 


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1 SEC. 4412. SPECIAL RULE FOR INFORMATION TO REDUCE 

2 MEDICATION ERRORS AND IMPROVE PA3 TIENT SAFETY. 

4 Nothing under this subtitle shall prevent a phar5 macist from communicating with patients in order to re6 duce medication errors and improve patient safety pro7 vided there is no remuneration other than for the treat8 ment of the individual and payment for such treatment 

9 of the individual as defined in 45 CFR 164.501. The 

10 Secretary may by regulation authorize a pharmacy to re11 ceive remuneration that does not exceed their reasonable 

12 out-of-pocket costs for such communications if the Sec13 retary determines that allowing this remuneration im14 proves patient care and protects protected health informa15 tion. 

16 PART II—RELATIONSHIP TO OTHER LAWS; REGU17 LATORY REFERENCES; EFFECTIVE DATE; RE18 PORTS 

19 SEC. 4421. RELATIONSHIP TO OTHER LAWS. 

20 (a) APPLICATION OF HIPAA STATE PREEMPTION.— 

21 Section 1178 of the Social Security Act (42 U.S.C. 

22 1320d–7) shall apply to a provision or requirement under 

23 this subtitle in the same manner that such section applies 

24 to a provision or requirement under part C of title XI of 

25 such Act or a standard or implementation specification 


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1 adopted or established under sections 1172 through 1174 

2 of such Act. 

3 (b) HEALTH INSURANCE PORTABILITY AND AC4 COUNTABILITY ACT.—The standards governing the pri5 vacy and security of individually identifiable health infor6 mation promulgated by the Secretary under sections 

7 262(a) and 264 of the Health Insurance Portability and 

8 Accountability Act of 1996 shall remain in effect to the 

9 extent that they are consistent with this subtitle. The Sec10 retary shall by rule amend such Federal regulations as re11 quired to make such regulations consistent with this sub12 title. 

13 SEC. 4422. REGULATORY REFERENCES. 

14 Each reference in this subtitle to a provision of the 

15 Code of Federal Regulations refers to such provision as 

16 in effect on the date of the enactment of this title (or to 

17 the most recent update of such provision). 

18 SEC. 4423. EFFECTIVE DATE. 

19 Except as otherwise specifically provided, the provi20 sions of part I shall take effect on the date that is 12 

21 months after the date of the enactment of this title. 

22 SEC. 4424. STUDIES, REPORTS, GUIDANCE. 

23 (a) REPORT ON COMPLIANCE.— 

24 (1) IN GENERAL.—For the first year beginning 

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1 nually thereafter, the Secretary shall prepare and 

2 submit to the Committee on Health, Education, 

3 Labor, and Pensions of the Senate and the Com4 mittee on Ways and Means and the Committee on 

5 Energy and Commerce of the House of Representa6 tives a report concerning complaints of alleged viola7 tions of law, including the provisions of this subtitle 

8 as well as the provisions of subparts C and E of part 

9 164 of title 45, Code of Federal Regulations, (as 

10 such provisions are in effect as of the date of enact11 ment of this Act) relating to privacy and security of 

12 health information that are received by the Secretary 

13 during the year for which the report is being pre14 pared. Each such report shall include, with respect 

15 to such complaints received during the year— 

16 (A) the number of such complaints; 

17 (B) the number of such complaints re18 solved informally, a summary of the types of 

19 such complaints so resolved, and the number of 

20 covered entities that received technical assist21 ance from the Secretary during such year in 

22 order to achieve compliance with such provi23 sions and the types of such technical assistance 

24 provided; 


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1 (C) the number of such complaints that 

2 have resulted in the imposition of civil monetary 

3 penalties or have been resolved through mone4 tary settlements, including the nature of the 

5 complaints involved and the amount paid in 

6 each penalty or settlement; 

7 (D) the number of compliance reviews con8 ducted and the outcome of each such review; 

9 (E) the number of subpoenas or inquiries 

10 issued; 

11 (F) the Secretary’s plan for improving 

12 compliance with and enforcement of such provi13 sions for the following year; and 

14 (G) the number of audits performed and a 

15 summary of audit findings pursuant to section 

16 4411. 

17 (2) AVAILABILITY TO PUBLIC.—Each report 

18 under paragraph (1) shall be made available to the 

19 public on the Internet website of the Department of 

20 Health and Human Services. 

21 (b) STUDY AND REPORT ON APPLICATION OF PRI22 VACY AND SECURITY REQUIREMENTS TO NON-HIPAA 

23 COVERED ENTITIES.— 

24 (1) STUDY.—Not later than one year after the 

25 date of the enactment of this title, the Secretary, in 


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1 consultation with the Federal Trade Commission, 

2 shall conduct a study, and submit a report under 

3 paragraph (2), on privacy and security requirements 

4 for entities that are not covered entities or business 

5 associates as of the date of the enactment of this 

6 title, including— 

7 (A) requirements relating to security, pri8 vacy, and notification in the case of a breach of 

9 security or privacy (including the applicability 

10 of an exemption to notification in the case of 

11 individually identifiable health information that 

12 has been rendered unusable, unreadable, or in13 decipherable through technologies or methodolo14 gies recognized by appropriate professional or15 ganization or standard setting bodies to provide 

16 effective security for the information) that 

17 should be applied to— 

18 (i) vendors of personal health records; 

19 (ii) entities that offer products or 

20 services through the website of a vendor of 

21 personal health records; 

22 (iii) entities that are not covered enti23 ties and that offer products or services 

24 through the websites of covered entities 


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1 that offer individuals personal health 

2 records; 

3 (iv) entities that are not covered enti4 ties and that access information in a per5 sonal health record or send information to 

6 a personal health record; and 

7 (v) third party service providers used 

8 by a vendor or entity described in clause 

9 (i), (ii), (iii), or (iv) to assist in providing 

10 personal health record products or services; 

11 (B) a determination of which Federal gov12 ernment agency is best equipped to enforce 

13 such requirements recommended to be applied 

14 to such vendors, entities, and service providers 

15 under subparagraph (A); and 

16 (C) a timeframe for implementing regula17 tions based on such findings. 

18 (2) REPORT.—The Secretary shall submit to 

19 the Committee on Finance, the Committee on 

20 Health, Education, Labor, and Pensions, and the 

21 Committee on Commerce of the Senate and the 

22 Committee on Ways and Means and the Committee 

23 on Energy and Commerce of the House of Rep24 resentatives a report on the findings of the study 

25 under paragraph (1) and shall include in such report 


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1 recommendations on the privacy and security re2 quirements described in such paragraph. 

3 (c) GUIDANCE ON IMPLEMENTATION SPECIFICATION

4 TO DE-IDENTIFY PROTECTED HEALTH INFORMATION.— 

5 Not later than 12 months after the date of the enactment 

6 of this title, the Secretary shall, in consultation with stake7 holders, issue guidance on how best to implement the re8 quirements for the de-identification of protected health in9 formation under section 164.514(b) of title 45, Code of 

10 Federal Regulations. 

11 (d) GAO REPORT ON TREATMENT DISCLOSURES.— 

12 Not later than one year after the date of the enactment 

13 of this title, the Comptroller General of the United States 

14 shall submit to the Committee on Health, Education, 

15 Labor, and Pensions of the Senate and the Committee on 

16 Ways and Means and the Committee on Energy and Com17 merce of the House of Representatives a report on the 

18 best practices related to the disclosure among health care 

19 providers of protected health information of an individual 

20 for purposes of treatment of such individual. Such report 

21 shall include an examination of the best practices imple22 mented by States and by other entities, such as health 

23 information exchanges and regional health information or24 ganizations, an examination of the extent to which such 

25 best practices are successful with respect to the quality 


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1 of the resulting health care provided to the individual and 

2 with respect to the ability of the health care provider to 

3 manage such best practices, and an examination of the 

4 use of electronic informed consent for disclosing protected 

5 health information for treatment, payment, and health 

6 care operations. 

7 Subtitle E—Miscellaneous 

8 Medicare Provisions 

9 SEC. 4501. MORATORIA ON CERTAIN MEDICARE REGULA10 TIONS. 

11 (a) DELAY IN PHASE OUT OF MEDICARE HOSPICE

12 BUDGET NEUTRALITY ADJUSTMENT FACTOR DURING

13 FISCAL YEAR 2009.—Notwithstanding any other provi14 sion of law, including the final rule published on August 

15 8, 2008, 73 Federal Register 46464 et seq., relating to 

16 Medicare Program; Hospice Wage Index for Fiscal Year 

17 2009, the Secretary of Health and Human Services shall 

18 not phase out or eliminate the budget neutrality adjust19 ment factor in the Medicare hospice wage index before Oc20 tober 1, 2009, and the Secretary shall recompute and 

21 apply the final Medicare hospice wage index for fiscal year 

22 2009 as if there had been no reduction in the budget neu23 trality adjustment factor. 


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1 (b) NON-APPLICATION OF PHASED-OUT INDIRECT

2 MEDICAL EDUCATION (IME) ADJUSTMENT FACTOR FOR

3 FISCAL YEAR 2009.— 

4 (1) IN GENERAL.—Section 412.322 of title 42, 

5 Code of Federal Regulations, shall be applied with6 out regard to paragraph (c) of such section, and the 

7 Secretary of Health and Human Services shall re8 compute payments for discharges occurring on or 

9 after October 1, 2008, as if such paragraph had 

10 never been in effect. 

11 (2) NO EFFECT ON SUBSEQUENT YEARS.— 

12 Nothing in paragraph (1) shall be construed as hav13 ing any effect on the application of paragraph (d) of 

14 section 412.322 of title 42, Code of Federal Regula15 tions. 

16 (c) FUNDING FOR IMPLEMENTATION.—In addition to 

17 funds otherwise available, for purposes of implementing 

18 the provisions of subsections (a) and (b), including costs 

19 incurred in reprocessing claims in carrying out such provi20 sions, the Secretary of Health and Human Services shall 

21 provide for the transfer from the Federal Hospital Insur22 ance Trust Fund established under section 1817 of the 

23 Social Security Act (42 U.S.C. 1395i) to the Centers for 

24 Medicare & Medicaid Services Program Management Ac25 count of $2,000,000 for fiscal year 2009. 


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1 SEC. 4502. LONG-TERM CARE HOSPITAL TECHNICAL COR2 RECTIONS. 

3 (a) PAYMENT.—Subsection (c) of section 114 of the 

4 Medicare, Medicaid, and SCHIP Extension Act of 2007 

5 (Public Law 110–173) is amended— 

6 (1) in paragraph (1)— 

7 (A) by amending the heading to read as 

8 follows: ‘‘DELAY IN APPLICATION OF 25 PER9 CENT PATIENT THRESHOLD PAYMENT ADJUST10 MENT’’; 

11 (B) by striking ‘‘the date of the enactment 

12 of this Act’’ and inserting ‘‘July 1, 2007,’’; and 

13 (C) in subparagraph (A), by inserting ‘‘or 

14 to a long-term care hospital, or satellite facility, 

15 that as of December 29, 2007, was co-located 

16 with an entity that is a provider-based, off-cam17 pus location of a subsection (d) hospital which 

18 did not provide services payable under section 

19 1886(d) of the Social Security Act at the off20 campus location’’ after ‘‘freestanding long-term 

21 care hospitals’’; and 

22 (2) in paragraph (2)— 

23 (A) in subparagraph (B)(ii), by inserting 

24 ‘‘or that is described in section 412.22(h)(3)(i) 

25 of such title’’ before the period; and 


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1 (B) in subparagraph (C), by striking ‘‘the 

2 date of the enactment of this Act’’ and insert3 ing ‘‘October 1, 2007 (or July 1, 2007, in the 

4 case of a satellite facility described in section 

5 412.22(h)(3)(i) of title 42, Code of Federal 

6 Regulations)’’. 

7 (b) MORATORIUM.—Subsection (d)(3)(A) of such sec8 tion is amended by striking ‘‘if the hospital or facility’’ 

9 and inserting ‘‘if the hospital or facility obtained a certifi10 cate of need for an increase in beds that is in a State 

11 for which such certificate of need is required and that was 

12 issued on or after April 1, 2005, and before December 

13 29, 2007, or if the hospital or facility’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall be effective and apply as if included in 

16 the enactment of the Medicare, Medicaid, and SCHIP Ex17 tension Act of 2007 (Public Law 110–173). 

18 TITLE V—MEDICAID 

19 PROVISIONS 

20 SEC. 5000. TABLE OF CONTENTS OF TITLE. 

21 The table of contents of this title is as follows: 

Sec. 5000. Table of contents of title. 

Sec. 5001. Temporary increase of Medicaid FMAP. 

Sec. 5002. Moratoria on certain regulations. 

Sec. 5003. Transitional Medicaid assistance (TMA). 

Sec. 5004. Protections for Indians under Medicaid and CHIP. 

Sec. 5005. Consultation on Medicaid and CHIP. 

Sec. 5006. Temporary increase in DSH allotments during recession. 


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1 SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP. 

2 (a) PERMITTING MAINTENANCE OF FMAP.—Subject 

3 to subsections (e), (f), and (g), if the FMAP determined 

4 without regard to this section for a State for— 

5 (1) fiscal year 2009 is less than the FMAP as 

6 so determined for fiscal year 2008, the FMAP for 

7 the State for fiscal year 2008 shall be substituted 

8 for the State’s FMAP for fiscal year 2009, before 

9 the application of this section; 

10 (2) fiscal year 2010 is less than the FMAP as 

11 so determined for fiscal year 2008 or fiscal year 

12 2009 (after the application of paragraph (1)), the 

13 greater of such FMAP for the State for fiscal year 

14 2008 or fiscal year 2009 shall be substituted for the 

15 State’s FMAP for fiscal year 2010, before the appli16 cation of this section; and 

17 (3) fiscal year 2011 is less than the FMAP as 

18 so determined for fiscal year 2008, fiscal year 2009 

19 (after the application of paragraph (1)), or fiscal 

20 year 2010 (after the application of paragraph (2)), 

21 the greatest of such FMAP for the State for fiscal 

22 year 2008, fiscal year 2009, or fiscal year 2010 shall 

23 be substituted for the State’s FMAP for fiscal year 

24 2011, before the application of this section, but only 

25 for the first calendar quarter in fiscal year 2011. 

26 (b) GENERAL 4.9 PERCENTAGE POINT INCREASE.— 


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1 (1) IN GENERAL.—Subject to subsections (e), 

2 (f), and (g) and paragraph (2), for each State for 

3 calendar quarters during the recession adjustment 

4 period (as defined in subsection (h)(2)), the FMAP 

5 (after the application of subsection (a)) shall be in6 creased (without regard to any limitation otherwise 

7 specified in section 1905(b) of the Social Security 

8 Act) by 4.9 percentage points. 

9 (2) SPECIAL ELECTION FOR TERRITORIES.—In 

10 the case of a State that is not one of the 50 States 

11 or the District of Columbia, paragraph (1) shall only 

12 apply if the State makes a one-time election, in a 

13 form and manner specified by the Secretary and for 

14 the entire recession adjustment period, to apply the 

15 increase in FMAP under paragraph (1) and a 10 

16 percent increase under subsection (d) instead of ap17 plying a 20 percent increase under subsection (d). 

18 (c) ADDITIONAL ADJUSTMENT TO REFLECT IN19 CREASE IN UNEMPLOYMENT.— 

20 (1) IN GENERAL.—Subject to subsections (e), 

21 (f), and (g), in the case of a State that is a high 

22 unemployment State (as defined in paragraph (2)) 

23 for a calendar quarter during the recession adjust24 ment period, the FMAP (taking into account the ap25 plication of subsections (a) and (b)) for such quarter 


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1 shall be further increased by the high unemployment 

2 percentage point adjustment specified in paragraph 

3 (3) for the State for the quarter. 

4 (2) HIGH UNEMPLOYMENT STATE.— 

5 (A) IN GENERAL.—In this subsection, sub6 ject to subparagraph (B), the term ‘‘high unem7 ployment State’’ means, with respect to a cal8 endar quarter in the recession adjustment pe9 riod, a State that is 1 of the 50 States or the 

10 District of Columbia and for which the State 

11 unemployment increase percentage (as com12 puted under paragraph (5)) for the quarter is 

13 not less than 1.5 percentage points. 

14 (B) MAINTENANCE OF STATUS.—If a 

15 State is a high unemployment State for a cal16 endar quarter, it shall remain a high unemploy17 ment State for each subsequent calendar quar18 ter ending before July 1, 2010. 

19 (3) HIGH UNEMPLOYMENT PERCENTAGE POINT

20 ADJUSTMENT.— 

21 (A) IN GENERAL.—The high unemploy22 ment percentage point adjustment specified in 

23 this paragraph for a high unemployment State 

24 for a quarter is equal to the product of— 


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1 (i) the SMAP for such State and 

2 quarter (determined after the application 

3 of subsection (a) and before the application 

4 of subsection (b)); and 

5 (ii) subject to subparagraph (B), the 

6 State unemployment reduction factor spec7 ified in paragraph (4) for the State and 

8 quarter. 

9 (B) MAINTENANCE OF ADJUSTMENT

10 LEVEL FOR CERTAIN QUARTERS.—In no case 

11 shall the State unemployment reduction factor 

12 applied under subparagraph (A)(ii) for a State 

13 for a quarter (beginning on or after January 1, 

14 2009, and ending before July 1, 2010) be less 

15 than the State unemployment reduction factor 

16 applied to the State for the previous quarter 

17 (taking into account the application of this sub18 paragraph). 

19 (4) STATE UNEMPLOYMENT REDUCTION FAC20 TOR.—In the case of a high unemployment State for 

21 which the State unemployment increase percentage 

22 (as computed under paragraph (5)) with respect to 

23 a calendar quarter is— 

24 (A) not less than 1.5, but is less than 2.5, 

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1 duction factor for the State and quarter is 6 

2 percent; 

3 (B) not less than 2.5, but is less than 3.5, 

4 percentage points, the State unemployment re5 duction factor for the State and quarter is 12 

6 percent; or 

7 (C) not less than 3.5 percentage points, 

8 the State unemployment reduction factor for 

9 the State and quarter is 14 percent. 

10 (5) COMPUTATION OF STATE UNEMPLOYMENT

11 INCREASE PERCENTAGE.— 

12 (A) IN GENERAL.—In this subsection, the 

13 ‘‘State unemployment increase percentage’’ for 

14 a State for a calendar quarter is equal to the 

15 number of percentage points (if any) by 

16 which— 

17 (i) the average monthly unemployment 

18 rate for the State for months in the most 

19 recent previous 3-consecutive-month period 

20 for which data are available, subject to 

21 subparagraph (C); exceeds 

22 (ii) the lowest average monthly unem23 ployment rate for the State for any 3-con24 secutive-month period preceding the period 


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1 described in clause (i) and beginning on or 

2 after January 1, 2006. 

3 (B) AVERAGE MONTHLY UNEMPLOYMENT

4 RATE DEFINED.—In this paragraph, the term 

5 ‘‘average monthly unemployment rate’’ means 

6 the average of the monthly number unemployed, 

7 divided by the average of the monthly civilian 

8 labor force, seasonally adjusted, as determined 

9 based on the most recent monthly publications 

10 of the Bureau of Labor Statistics of the De11 partment of Labor. 

12 (C) SPECIAL RULE.—With respect to— 

13 (i) the first 2 calendar quarters of the 

14 recession adjustment period, the most re15 cent previous 3-consecutive-month period 

16 described in subparagraph (A)(i) shall be 

17 the 3-consecutive-month period beginning 

18 with October 2008; and 

19 (ii) the last 2 calendar quarters of the 

20 recession adjustment period, the most re21 cent previous 3-consecutive-month period 

22 described in such subparagraph shall be 

23 the 3-consecutive-month period beginning 

24 with December 2009. 


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1 (d) INCREASE IN CAP ON MEDICAID PAYMENTS TO

2 TERRITORIES.—Subject to subsections (f) and (g) , with 

3 respect to entire fiscal years occurring during the reces4 sion adjustment period and with respect to fiscal years 

5 only a portion of which occurs during such period (and 

6 in proportion to the portion of the fiscal year that occurs 

7 during such period), the amounts otherwise determined for 

8 Puerto Rico, the Virgin Islands, Guam, the Northern Mar9 iana Islands, and American Samoa under subsections (f) 

10 and (g) of section 1108 of the Social Security Act (42 

11 U.S.C. 1308) shall each be increased by 20 percent (or, 

12 in the case of an election under subsection (b)(2), 10 per13 cent). 

14 (e) SCOPE OF APPLICATION.—The increases in the 

15 FMAP for a State under this section shall apply for pur16 poses of title XIX of the Social Security Act and— 

17 (1) the increases applied under subsections (a), 

18 (b), and (c) shall not apply with respect— 

19 (A) to payments under parts A, B, and D 

20 of title IV or title XXI of such Act (42 U.S.C. 

21 601 et seq. and 1397aa et seq.); 

22 (B) to payments under title XIX of such 

23 Act that are based on the enhanced FMAP de24 scribed in section 2105(b) of such Act (42 

25 U.S.C. 1397ee(b)); and 


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1 (C) to payments for disproportionate share 

2 hospital (DSH) payment adjustments under 

3 section 1923 of such Act (42 U.S.C. 1396r–4); 

4 and 

5 (2) the increase provided under subsection (c) 

6 shall not apply with respect to payments under part 

7 E of title IV of such Act. 

8 (f) STATE INELIGIBILITY AND LIMITATION.— 

9 (1) IN GENERAL.—Subject to paragraphs (2) 

10 and (3), a State is not eligible for an increase in its 

11 FMAP under subsection (a), (b), or (c), or an in12 crease in a cap amount under subsection (d), if eligi13 bility standards, methodologies, or procedures under 

14 its State plan under title XIX of the Social Security 

15 Act (including any waiver under such title or under 

16 section 1115 of such Act (42 U.S.C. 1315)) are 

17 more restrictive than the eligibility standards, meth18 odologies, or procedures, respectively, under such 

19 plan (or waiver) as in effect on July 1, 2008. 

20 (2) STATE REINSTATEMENT OF ELIGIBILITY

21 PERMITTED.—Subject to paragraph (3), a State that 

22 has restricted eligibility standards, methodologies, or 

23 procedures under its State plan under title XIX of 

24 the Social Security Act (including any waiver under 

25 such title or under section 1115 of such Act (42 


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1 U.S.C. 1315)) after July 1, 2008, is no longer ineli2 gible under paragraph (1) beginning with the first 

3 calendar quarter in which the State has reinstated 

4 eligibility standards, methodologies, or procedures 

5 that are no more restrictive than the eligibility 

6 standards, methodologies, or procedures, respec7 tively, under such plan (or waiver) as in effect on 

8 July 1, 2008. 

9 (3) SPECIAL RULES.—A State shall not be in10 eligible under paragraph (1)— 

11 (A) for the calendar quarters before July 

12 1, 2009, on the basis of a restriction that was 

13 applied after July 1, 2008, and before the date 

14 of the enactment of this Act, if the State, prior 

15 to July 1, 2009, reinstated eligibility standards, 

16 methodologies, or procedures that are no more 

17 restrictive than the eligibility standards, meth18 odologies, or procedures, respectively, under 

19 such plan (or waiver) as in effect on July 1, 

20 2008; or 

21 (B) on the basis of a restriction that was 

22 effective under State law as of July 1, 2008, 

23 and would have been in effect as of such date, 

24 but for a delay (of not longer than 1 calendar 

25 quarter) in the approval of a request for a new 


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1 waiver under section 1115 of such Act with re2 spect to such restriction. 

3 (4) STATE’S APPLICATION TOWARD RAINY DAY

4 FUND.—A State is not eligible for an increase in its 

5 FMAP under subsection (b) or (c), or an increase in 

6 a cap amount under subsection (d), if any amounts 

7 attributable (directly or indirectly) to such increase 

8 are deposited or credited into any reserve or rainy 

9 day fund of the State. 

10 (5) RULE OF CONSTRUCTION.—Nothing in 

11 paragraph (1) or (2) shall be construed as affecting 

12 a State’s flexibility with respect to benefits offered 

13 under the State Medicaid program under title XIX 

14 of the Social Security Act (42 U.S.C. 1396 et seq.) 

15 (including any waiver under such title or under sec16 tion 1115 of such Act (42 U.S.C. 1315)). 

17 (6) NO WAIVER AUTHORITY.—The Secretary 

18 may not waive the application of this subsection or 

19 subsection (g) under section 1115 of the Social Se20 curity Act or otherwise. 

21 (g) REQUIREMENT FOR CERTAIN STATES.—In the 

22 case of a State that requires political subdivisions within 

23 the State to contribute toward the non-Federal share of 

24 expenditures under the State Medicaid plan required 

25 under section 1902(a)(2) of the Social Security Act (42 


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1 U.S.C. 1396a(a)(2)), the State is not eligible for an in2 crease in its FMAP under subsection (a), (b), or (c), or 

3 an increase in a cap amount under subsection (d), if it 

4 requires that such political subdivisions pay a greater per5 centage of the non-Federal share of such expenditures for 

6 quarters during the recession adjustment period, than the 

7 percentage that would have been required by the State 

8 under such plan on September 30, 2008, prior to applica9 tion of this section. 

10 (h) DEFINITIONS.—In this section, except as other11 wise provided: 

12 (1) FMAP.—The term ‘‘FMAP’’ means the 

13 Federal medical assistance percentage, as defined in 

14 section 1905(b) of the Social Security Act (42 

15 U.S.C. 1396d(b)), as determined without regard to 

16 this section except as otherwise specified. 

17 (2) RECESSION ADJUSTMENT PERIOD.—The 

18 term ‘‘recession adjustment period’’ means the pe19 riod beginning on October 1, 2008, and ending on 

20 December 31, 2010. 

21 (3) SECRETARY.—The term ‘‘Secretary’’ means 

22 the Secretary of Health and Human Services. 

23 (4) SMAP.—The term ‘‘SMAP’’ means, for a 

24 State, 100 percent minus the Federal medical assist25 ance percentage. 


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1 (5) STATE.—The term ‘‘State’’ has the mean2 ing given such term in section 1101(a)(1) of the So3 cial Security Act (42 U.S.C. 1301(a)(1)) for pur4 poses of title XIX of the Social Security Act (42 

5 U.S.C. 1396 et seq.). 

6 (i) SUNSET.—This section shall not apply to items 

7 and services furnished after the end of the recession ad8 justment period. 

9 SEC. 5002. MORATORIA ON CERTAIN REGULATIONS. 

10 (a) EXTENSION OF MORATORIA ON CERTAIN MED11 ICAID REGULATIONS.—The following sections are each 

12 amended by striking ‘‘April 1, 2009’’ and inserting ‘‘July 

13 1, 2009’’: 

14 (1) Section 7002(a)(1) of the U.S. Troop Read15 iness, Veterans’ Care, Katrina Recovery, and Iraq 

16 Accountability Appropriations Act, 2007 (Public 

17 Law 110–28), as amended by section 7001(a)(1) of 

18 the Supplemental Appropriations Act, 2008 (Public 

19 Law 110–252). 

20 (2) Section 206 of the Medicare, Medicaid, and 

21 SCHIP Extension Act of 2007 (Public Law 110– 

22 173), as amended by section 7001(a)(2) of the Sup23 plemental Appropriations Act, 2008 (Public Law 

24 110–252). 


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1 (3) Section 7001(a)(3)(A) of the Supplemental 

2 Appropriations Act, 2008 (Public Law 110–252). 

3 (b) ADDITIONAL MEDICAID MORATORIUM.—Not4 withstanding any other provision of law, with respect to 

5 expenditures for services furnished during the period be6 ginning on December 8, 2008 and ending on June 30, 

7 2009, the Secretary of Health and Human Services shall 

8 not take any action (through promulgation of regulation, 

9 issuance of regulatory guidance, use of Federal payment 

10 audit procedures, or other administrative action, policy, or 

11 practice, including a Medical Assistance Manual trans12 mittal or letter to State Medicaid directors) to implement 

13 the final regulation relating to clarification of the defini14 tion of outpatient hospital facility services under the Med15 icaid program published on November 7, 2008 (73 Federal 

16 Register 66187). 

17 SEC. 5003. TRANSITIONAL MEDICAID ASSISTANCE (TMA). 

18 (a) 18-MONTH EXTENSION.— 

19 (1) IN GENERAL.—Sections 1902(e)(1)(B) and 

20 1925(f) of the Social Security Act (42 U.S.C. 

21 1396a(e)(1)(B), 1396r–6(f)) are each amended by 

22 striking ‘‘September 30, 2003’’ and inserting ‘‘De23 cember 31, 2010’’. 

24 (2) EFFECTIVE DATE.—The amendments made 

25 by this subsection shall take effect on July 1, 2009. 


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1 (b) STATE OPTION OF INITIAL 12-MONTH ELIGI2 BILITY.—Section 1925 of the Social Security Act (42 

3 U.S.C. 1396r–6) is amended— 

4 (1) in subsection (a)(1), by inserting ‘‘but sub5 ject to paragraph (5)’’ after ‘‘Notwithstanding any 

6 other provision of this title’’; 

7 (2) by adding at the end of subsection (a) the 

8 following: 

9 ‘‘(5) OPTION OF 12-MONTH INITIAL ELIGIBILITY

10 PERIOD.—A State may elect to treat any reference 

11 in this subsection to a 6-month period (or 6 months) 

12 as a reference to a 12-month period (or 12 months). 

13 In the case of such an election, subsection (b) shall 

14 not apply.’’; and 

15 (3) in subsection (b)(1), by inserting ‘‘but sub16 ject to subsection (a)(5)’’ after ‘‘Notwithstanding 

17 any other provision of this title’’. 

18 (c) REMOVAL OF REQUIREMENT FOR PREVIOUS RE19 CEIPT OF MEDICAL ASSISTANCE.—Section 1925(a)(1) of 

20 such Act (42 U.S.C. 1396r–6(a)(1)), as amended by sub21 section (b)(1), is further amended— 

22 (1) by inserting ‘‘subparagraph (B) and’’ before 

23 ‘‘paragraph (5)’’; 

24 (2) by redesignating the matter after ‘‘RE25 QUIREMENT.—’’ as a subparagraph (A) with the 


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1 heading ‘‘IN GENERAL.—’’ and with the same inden2 tation as subparagraph (B) (as added by paragraph 

3 (3)); and 

4 (3) by adding at the end the following: 

5 ‘‘(B) STATE OPTION TO WAIVE REQUIRE6 MENT FOR 3 MONTHS BEFORE RECEIPT OF

7 MEDICAL ASSISTANCE.—A State may, at its op8 tion, elect also to apply subparagraph (A) in 

9 the case of a family that was receiving such aid 

10 for fewer than three months or that had applied 

11 for and was eligible for such aid for fewer than 

12 3 months during the 6 immediately preceding 

13 months described in such subparagraph.’’. 

14 (d) CMS REPORT ON ENROLLMENT AND PARTICIPA15 TION RATES UNDER TMA.—Section 1925 of such Act (42 

16 U.S.C. 1396r–6), as amended by this section, is further 

17 amended by adding at the end the following new sub18 section: 

19 ‘‘(g) COLLECTION AND REPORTING OF PARTICIPA20 TION INFORMATION.— 

21 ‘‘(1) COLLECTION OF INFORMATION FROM

22 STATES.—Each State shall collect and submit to the 

23 Secretary (and make publicly available), in a format 

24 specified by the Secretary, information on average 

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1 tion rates for adults and children under this section 

2 and of the number and percentage of children who 

3 become ineligible for medical assistance under this 

4 section whose medical assistance is continued under 

5 another eligibility category or who are enrolled under 

6 the State’s child health plan under title XXI. Such 

7 information shall be submitted at the same time and 

8 frequency in which other enrollment information 

9 under this title is submitted to the Secretary. 

10 ‘‘(2) ANNUAL REPORTS TO CONGRESS.—Using 

11 the information submitted under paragraph (1), the 

12 Secretary shall submit to Congress annual reports 

13 concerning enrollment and participation rates de14 scribed in such paragraph.’’. 

15 (e) EFFECTIVE DATE.—The amendments made by 

16 subsections (b) through (d) shall take effect on July 1, 

17 2009. 

18 SEC. 5004. PROTECTIONS FOR INDIANS UNDER MEDICAID 

19 AND CHIP. 

20 (a) PREMIUMS AND COST SHARING PROTECTION

21 UNDER MEDICAID.— 

22 (1) IN GENERAL.—Section 1916 of the Social 

23 Security Act (42 U.S.C. 1396o) is amended— 


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1 (A) in subsection (a), in the matter pre2 ceding paragraph (1), by striking ‘‘and (i)’’ and 

3 inserting ‘‘, (i), and (j)’’; and 

4 (B) by adding at the end the following new 

5 subsection: 

6 ‘‘(j) NO PREMIUMS OR COST SHARING FOR INDIANS

7 FURNISHED ITEMS OR SERVICES DIRECTLY BY INDIAN

8 HEALTH PROGRAMS OR THROUGH REFERRAL UNDER

9 CONTRACT HEALTH SERVICES.— 

10 ‘‘(1) NO COST SHARING FOR ITEMS OR SERV11 ICES FURNISHED TO INDIANS THROUGH INDIAN

12 HEALTH PROGRAMS.— 

13 ‘‘(A) IN GENERAL.—No enrollment fee, 

14 premium, or similar charge, and no deduction, 

15 copayment, cost sharing, or similar charge shall 

16 be imposed against an Indian who is furnished 

17 an item or service directly by the Indian Health 

18 Service, an Indian Tribe, Tribal Organization, 

19 or Urban Indian Organization or through refer20 ral under contract health services for which 

21 payment may be made under this title. 

22 ‘‘(B) NO REDUCTION IN AMOUNT OF PAY23 MENT TO INDIAN HEALTH PROVIDERS.—Pay24 ment due under this title to the Indian Health 

25 Service, an Indian Tribe, Tribal Organization, 


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1 or Urban Indian Organization, or a health care 

2 provider through referral under contract health 

3 services for the furnishing of an item or service 

4 to an Indian who is eligible for assistance under 

5 such title, may not be reduced by the amount 

6 of any enrollment fee, premium, or similar 

7 charge, or any deduction, copayment, cost shar8 ing, or similar charge that would be due from 

9 the Indian but for the operation of subpara10 graph (A). 

11 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

12 this subsection shall be construed as restricting the 

13 application of any other limitations on the imposi14 tion of premiums or cost sharing that may apply to 

15 an individual receiving medical assistance under this 

16 title who is an Indian.’’. 

17 (2) CONFORMING AMENDMENT.—Section 

18 1916A(b)(3) of such Act (42 U.S.C. 1396o–1(b)(3)) 

19 is amended— 

20 (A) in subparagraph (A), by adding at the 

21 end the following new clause: 

22 ‘‘(vi) An Indian who is furnished an 

23 item or service directly by the Indian 

24 Health Service, an Indian Tribe, Tribal 

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1 tion or through referral under contract 

2 health services.’’; and 

3 (B) in subparagraph (B), by adding at the 

4 end the following new clause: 

5 ‘‘(ix) Items and services furnished to 

6 an Indian directly by the Indian Health 

7 Service, an Indian Tribe, Tribal Organiza8 tion or Urban Indian Organization or 

9 through referral under contract health 

10 services.’’. 

11 (3) EFFECTIVE DATE.—The amendments made 

12 by this subsection shall take effect on October 1, 

13 2009. 

14 (b) TREATMENT OF CERTAIN PROPERTY FROM RE15 SOURCES FOR MEDICAID AND CHIP ELIGIBILITY.— 

16 (1) MEDICAID.—Section 1902 of the Social Se17 curity Act (42 U.S.C. 1396a), as amended by sec18 tion 3003(a) of the Health Insurance Assistance for 

19 the Unemployed Act of 2009, is amended by adding 

20 at the end the following new subsection: 

21 ‘‘(ee) Notwithstanding any other requirement of this 

22 title or any other provision of Federal or State law, a State 

23 shall disregard the following property from resources for 

24 purposes of determining the eligibility of an individual who 

25 is an Indian for medical assistance under this title: 


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1 ‘‘(1) Property, including real property and im2 provements, that is held in trust, subject to Federal 

3 restrictions, or otherwise under the supervision of 

4 the Secretary of the Interior, located on a reserva5 tion, including any federally recognized Indian 

6 Tribe’s reservation, pueblo, or colony, including 

7 former reservations in Oklahoma, Alaska Native re8 gions established by the Alaska Native Claims Set9 tlement Act, and Indian allotments on or near a res10 ervation as designated and approved by the Bureau 

11 of Indian Affairs of the Department of the Interior. 

12 ‘‘(2) For any federally recognized Tribe not de13 scribed in paragraph (1), property located within the 

14 most recent boundaries of a prior Federal reserva15 tion. 

16 ‘‘(3) Ownership interests in rents, leases, royal17 ties, or usage rights related to natural resources (in18 cluding extraction of natural resources or harvesting 

19 of timber, other plants and plant products, animals, 

20 fish, and shellfish) resulting from the exercise of fed21 erally protected rights. 

22 ‘‘(4) Ownership interests in or usage rights to 

23 items not covered by paragraphs (1) through (3) 

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1 ence or a traditional lifestyle according to applicable 

2 tribal law or custom.’’. 

3 (2) APPLICATION TO CHIP.—Section 2107(e)(1) 

4 of such Act (42 U.S.C. 1397gg(e)(1)) is amended by 

5 adding at the end the following new subparagraph: 

6 ‘‘(E) Section 1902(ff) (relating to dis7 regard of certain property for purposes of mak8 ing eligibility determinations).’’. 

9 (c) CONTINUATION OF CURRENT LAW PROTECTIONS

10 OF CERTAIN INDIAN PROPERTY FROM MEDICAID ESTATE

11 RECOVERY.—Section 1917(b)(3) of the Social Security 

12 Act (42 U.S.C. 1396p(b)(3)) is amended— 

13 (1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 

14 (2) by adding at the end the following new sub15 paragraph: 

16 ‘‘(B) The standards specified by the Sec17 retary under subparagraph (A) shall require 

18 that the procedures established by the State 

19 agency under subparagraph (A) exempt income, 

20 resources, and property that are exempt from 

21 the application of this subsection as of April 1, 

22 2003, under manual instructions issued to carry 

23 out this subsection (as in effect on such date) 

24 because of the Federal responsibility for Indian 

25 Tribes and Alaska Native Villages. Nothing in 


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1 this subparagraph shall be construed as pre2 venting the Secretary from providing additional 

3 estate recovery exemptions under this title for 

4 Indians.’’. 

5 SEC. 5005. CONSULTATION ON MEDICAID AND CHIP. 

6 (a) IN GENERAL.—Section 1139 of the Social Secu7 rity Act (42 U.S.C. 1320b–9) is amended to read as fol8 lows: 

9 ‘‘CONSULTATION WITH TRIBAL TECHNICAL ADVISORY

10 GROUP (TTAG)

11 ‘‘SEC. 1139. The Secretary shall maintain within the 

12 Centers for Medicaid & Medicare Services (CMS) a Tribal 

13 Technical Advisory Group, which was first established in 

14 accordance with requirements of the charter dated Sep15 tember 30, 2003, and the Secretary shall include in such 

16 Group a representative of the Urban Indian Organizations 

17 and the Service. The representative of the Urban Indian 

18 Organization shall be deemed to be an elected officer of 

19 a tribal government for purposes of applying section 

20 204(b) of the Unfunded Mandates Reform Act of 1995 

21 (2 U.S.C. 1534(b)).’’. 

22 (b) SOLICITATION OF ADVICE UNDER MEDICAID AND

23 CHIP.— 

24 (1) MEDICAID STATE PLAN AMENDMENT.—Sec25 tion 1902(a) of the Social Security Act (42 U.S.C. 

26 1396a(a)) is amended— 


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1 (A) in paragraph (70), by striking ‘‘and’’ 

2 at the end; 

3 (B) in paragraph (71), by striking the pe4 riod at the end and inserting ‘‘; and’’; and 

5 (C) by inserting after paragraph (71), the 

6 following new paragraph: 

7 ‘‘(72) in the case of any State in which 1 or 

8 more Indian Health Programs or Urban Indian Or9 ganizations furnishes health care services, provide 

10 for a process under which the State seeks advice on 

11 a regular, ongoing basis from designees of such In12 dian Health Programs and Urban Indian Organiza13 tions on matters relating to the application of this 

14 title that are likely to have a direct effect on such 

15 Indian Health Programs and Urban Indian Organi16 zations and that— 

17 ‘‘(A) shall include solicitation of advice 

18 prior to submission of any plan amendments, 

19 waiver requests, and proposals for demonstra20 tion projects likely to have a direct effect on In21 dians, Indian Health Programs, or Urban In22 dian Organizations; and 

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1 nizations to the medical care advisory com2 mittee advising the State on its State plan 

3 under this title.’’. 

4 (2) APPLICATION TO CHIP.—Section 2107(e)(1) 

5 of such Act (42 U.S.C. 1397gg(e)(1)), as amended 

6 by section 5004(b), is amended by adding at the end 

7 the following new subparagraph: 

8 ‘‘(F) Section 1902(a)(72) (relating to re9 quiring certain States to seek advice from des10 ignees of Indian Health Programs and Urban 

11 Indian Organizations).’’. 

12 (c) RULE OF CONSTRUCTION.—Nothing in the 

13 amendments made by this section shall be construed as 

14 superseding existing advisory committees, working groups, 

15 guidance, or other advisory procedures established by the 

16 Secretary of Health and Human Services or by any State 

17 with respect to the provision of health care to Indians. 

18 SEC. 5006. TEMPORARY INCREASE IN DSH ALLOTMENTS 

19 DURING RECESSION. 

20 Section 1923(f)(3) of the Social Security Act (42 

21 U.S.C. 1396r–4(f)(3)) is amended— 

22 (1) in subparagraph (A), by striking ‘‘para23 graph (6)’’ and inserting ‘‘paragraph (6) and sub24 paragraph (E)’’; and 


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1 (2) by adding at the end the following new sub2 paragraph: 

3 ‘‘(E) TEMPORARY INCREASE IN ALLOT4 MENTS DURING RECESSION.— 

5 ‘‘(i) IN GENERAL.—Subject to clause 

6 (ii), the DSH allotment for any State— 

7 ‘‘(I) for fiscal year 2009 is equal 

8 to 102.5 percent of the DSH allot9 ment that would be determined under 

10 this paragraph for the State for fiscal 

11 year 2009 without application of this 

12 subparagraph, notwithstanding sub13 paragraph (B); 

14 ‘‘(II) for fiscal year 2010 is equal 

15 to 102.5 percent of the DSH allot16 ment for the State for fiscal year 

17 2009, as determined under subclause 

18 (I); and 

19 ‘‘(III) for each succeeding fiscal 

20 year is equal to the DSH allotment 

21 for the State under this paragraph de22 termined without applying subclauses 

23 (I) and (II). 

24 ‘‘(ii) APPLICATION.—Clause (i) shall 

25 not apply to a State for a year in the case 


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1 that the DSH allotment for such State for 

2 such year under this paragraph determined 

3 without applying clause (i) would grow 

4 higher than the DSH allotment specified 

5 under clause (i) for the State for such 

6 year.’’. 

7 TITLE VI—BROADBAND 

8 COMMUNICATIONS 

9 SEC. 6001. INVENTORY OF BROADBAND SERVICE CAPA10 BILITY AND AVAILABILITY. 

11 (a) ESTABLISHMENT.—To provide a comprehensive 

12 nationwide inventory of existing broadband service capa13 bility and availability, the National Telecommunications 

14 and Information Administration (‘‘NTIA’’) shall develop 

15 and maintain a broadband inventory map of the United 

16 States that identifies and depicts the geographic extent 

17 to which broadband service capability is deployed and 

18 available from a commercial provider or public provider 

19 throughout each State. 

20 (b) PUBLIC AVAILABILITY AND INTERACTIVITY.— 

21 Not later than 2 years after the date of enactment of this 

22 Act, the NTIA shall make the broadband inventory map 

23 developed and maintained pursuant to this section acces24 sible by the public on a World Wide Web site of the NTIA 

25 in a form that is interactive and searchable. 


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1 SEC. 6002. WIRELESS AND BROADBAND DEPLOYMENT 

2 GRANT PROGRAMS. 

3 (a) GRANTS AUTHORIZED.— 

4 (1) IN GENERAL.—The National Telecommuni5 cations and Information Administration (‘‘NTIA’’) 

6 is authorized to carry out a program to award 

7 grants to eligible entities for the non-recurring costs 

8 associated with the deployment of broadband infra9 structure in rural, suburban, and urban areas, in ac10 cordance with the requirements of this section. 

11 (2) PROGRAM WEBSITE.—The NTIA shall de12 velop and maintain a website to make publicly avail13 able information about the program described in 

14 paragraph (1), including— 

15 (A) each prioritization report submitted by 

16 a State under subsection (b); 

17 (B) a list of eligible entities that have ap18 plied for a grant under this section, and the 

19 area or areas the entity proposes to serve; and 

20 (C) the status of each such application, 

21 whether approved, denied, or pending. 

22 (b) STATE PRIORITIES.— 

23 (1) PRIORITIES REPORT SUBMISSION.—Not 

24 later than 75 days after the date of enactment of 

25 this section, each State intending to participate in 

26 the program under this section shall submit to the 


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1 NTIA a report indicating the geographic areas of 

2 the State which— 

3 (A) for the purposes of determining the 

4 need for Wireless Deployment Grants under 

5 subsection (c), the State considers to have the 

6 greatest priority for— 

7 (i) wireless voice service in unserved 

8 areas; and 

9 (ii) advanced wireless broadband serv10 ice in underserved areas; and 

11 (B) for the purposes of determining the 

12 need for Broadband Deployment Grants under 

13 subsection (d), the State considers to have the 

14 greatest priority for— 

15 (i) basic broadband service in 

16 unserved areas; and 

17 (ii) advanced broadband service in un18 derserved areas. 

19 (2) LIMITATION.—The unserved and under20 served areas identified by a State in the report re21 quired by this subsection shall not represent, in the 

22 aggregate, more than 20 percent of the population 

23 of such State. 

24 (c) WIRELESS DEPLOYMENT GRANTS.— 


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1 (1) AUTHORIZED ACTIVITY.—The NTIA shall 

2 award Wireless Deployment Grants in accordance 

3 with this subsection from amounts authorized for 

4 Wireless Deployment Grants by this subtitle to eligi5 ble entities to deploy necessary infrastructure for the 

6 provision of wireless voice service or advanced wire7 less broadband service to end users in designated 

8 areas. 

9 (2) GRANT DISTRIBUTION.—The NTIA shall 

10 seek to distribute grants, to the extent possible, so 

11 that 25 percent of the grants awarded under this 

12 subsection shall be awarded to eligible entities for 

13 providing wireless voice service to unserved areas 

14 and 75 percent of grants awarded under this sub15 section shall be awarded to eligible entities for pro16 viding advanced wireless broadband service to under17 served areas. 

18 (d) BROADBAND DEPLOYMENT GRANTS.— 

19 (1) AUTHORIZED ACTIVITY.—The NTIA shall 

20 award Broadband Deployment Grants in accordance 

21 with this subsection from amounts authorized for 

22 Broadband Deployment Grants by this subtitle to el23 igible entities to deploy necessary infrastructure for 

24 the provision of basic broadband service or advanced 

25 broadband service to end users in designated areas. 


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1 (2) GRANT DISTRIBUTION.—The NTIA shall 

2 seek to distribute grants, to the extent possible, so 

3 that 25 percent of the grants awarded under this 

4 subsection shall be awarded to eligible entities for 

5 providing basic broadband service to unserved areas 

6 and 75 percent of grants awarded under this sub7 section shall be awarded to eligible entities for pro8 viding advanced broadband service to underserved 

9 areas. 

10 (e) GRANT REQUIREMENTS.—The NTIA shall— 

11 (1) adopt rules to protect against unjust enrich12 ment; and 

13 (2) ensure that grant recipients— 

14 (A) meet buildout requirements; 

15 (B) maximize use of the supported infra16 structure by the public; 

17 (C) operate basic and advanced broadband 

18 service networks on an open access basis; 

19 (D) operate advanced wireless broadband 

20 service on a wireless open access basis; and 

21 (E) adhere to the principles contained in 

22 the Federal Communications Commission’s 

23 broadband policy statement (FCC 05–151, 

24 adopted August 5, 2005). 

25 (f) APPLICATIONS.— 


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1 (1) SUBMISSION.—To be considered for a grant 

2 awarded under subsection (c) or (d), an eligible enti3 ty shall submit to the NTIA an application at such 

4 time, in such manner, and containing such informa5 tion and assurances as the NTIA may require. Such 

6 an application shall include— 

7 (A) a cost-study estimate for serving the 

8 particular geographic area to be served by the 

9 entity; 

10 (B) a proposed build-out schedule to resi11 dential households and small businesses in the 

12 area; 

13 (C) for applicants for Wireless Deployment 

14 Grants under subsection (c), a build-out sched15 ule for geographic coverage of such areas; and 

16 (D) any other requirements the NTIA 

17 deems necessary. 

18 (2) SELECTION.— 

19 (A) NOTIFICATION.—The NTIA shall no20 tify each eligible entity that has submitted a 

21 complete application whether the entity has 

22 been approved or denied for a grant under this 

23 section in a timely fashion. 


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1 (B) GRANT DISTRIBUTION CONSIDER2 ATIONS.—In awarding grants under this sec3 tion, the NTIA shall, to the extent practical— 

4 (i) award not less than one grant in 

5 each State; 

6 (ii) give substantial weight to whether 

7 an application is from an eligible entity to 

8 deploy infrastructure in an area that is an 

9 area— 

10 (I) identified by a State in a re11 port submitted under subsection (b); 

12 or 

13 (II) in which the NTIA deter14 mines there will be a significant 

15 amount of public safety or emergency 

16 response use of the infrastructure; 

17 (iii) consider whether an application 

18 from an eligible entity to deploy infrastruc19 ture in an area— 

20 (I) will, if approved, increase the 

21 affordability of, or subscribership to, 

22 service to the greatest population of 

23 underserved users in the area; 

24 (II) will, if approved, enhance 

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1 cation, or children to the greatest pop2 ulation of underserved users in the 

3 area; 

4 (III) contains concrete plans for 

5 enhancing computer ownership or 

6 computer literacy in the area; 

7 (IV) is from a recipient of more 

8 than 20 percent matching grants from 

9 State, local, or private entities for 

10 service in the area and the extent of 

11 such commitment; 

12 (V) will, if approved, result in 

13 unjust enrichment because the eligible 

14 entity has applied for, or intends to 

15 apply for, support for the non-recur16 ring costs through another Federal 

17 program for service in the area; and 

18 (VI) will, if approved, signifi19 cantly improve interoperable 

20 broadband communications systems 

21 available for use by public safety and 

22 emergency response; and 

23 (iv) consider whether the eligible enti24 ty is a socially and economically disadvan25 taged small business concern, as defined 


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1 under section 8(a) of the Small Business 

2 Act (15 U.S.C. 637). 

3 (g) COORDINATION AND CONSULTATION.—The 

4 NTIA shall coordinate with the Federal Communications 

5 Commission and shall consult with other appropriate Fed6 eral agencies in implementing this section. 

7 (h) REPORT REQUIRED.—The NTIA shall submit an 

8 annual report to the Committee on Energy and Commerce 

9 of the House of Representatives and the Committee on 

10 Commerce, Science, and Transportation of the Senate for 

11 5 years assessing the impact of the grants funded under 

12 this section on the basis of the objectives and criteria de13 scribed in subsection (f)(2)(B)(iii). 

14 (i) RULEMAKING AUTHORITY.—The NTIA shall have 

15 the authority to prescribe such rules as necessary to carry 

16 out the purposes of this section. 

17 (j) DEFINITIONS.—For the purpose of this section— 

18 (1) the term ‘‘advanced broadband service’’ 

19 means a service delivering data to the end user 

20 transmitted at a speed of at least 45 megabits per 

21 second downstream and at least 15 megabits per 

22 second upstream; 

23 (2) the term ‘‘advanced wireless broadband 

24 service’’ means a wireless service delivering to the 

25 end user data transmitted at a speed of at least 3 


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1 megabits per second downstream and at least 1 

2 megabit per second upstream over an end-to-end 

3 internet protocol wireless network; 

4 (3) the term ‘‘basic broadband service’’ means 

5 a service delivering data to the end user transmitted 

6 at a speed of at least 5 megabits per second down7 stream and at least 1 megabit per second upstream; 

8 (4) the term ‘‘eligible entity’’ means— 

9 (A) a provider of wireless voice service, ad10 vanced wireless broadband service, basic 

11 broadband service, or advanced broadband serv12 ice, including a satellite carrier that provides 

13 any such service; 

14 (B) a State or unit of local government, or 

15 agency or instrumentality thereof, that is or in16 tends to be a provider of any such service; and 

17 (C) any other entity, including construc18 tion companies, tower companies, backhaul 

19 companies, or other service providers, that the 

20 NTIA authorizes by rule to participate in the 

21 programs under this section, if such other enti22 ty is required to provide access to the supported 

23 infrastructure on a neutral, reasonable basis to 

24 maximize use; 


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1 (5) the term ‘‘interoperable broadband commu2 nications systems’’ means communications systems 

3 which enable public safety agencies to share infor4 mation among local, State, Federal, and tribal public 

5 safety agencies in the same area using voice or data 

6 signals via advanced wireless broadband service; 

7 (6) the term ‘‘open access’’ shall be defined by 

8 the Federal Communications Commission not later 

9 than 45 days after the date of enactment of this sec10 tion; 

11 (7) the term ‘‘State’’ includes the District of 

12 Columbia and the territories and possessions; 

13 (8) the term ‘‘underserved area’’ shall be de14 fined by the Federal Communications Commission 

15 not later than 45 days after the date of enactment 

16 of this section; 

17 (9) the term ‘‘unserved area’’ shall be defined 

18 by the Federal Communications Commission not 

19 later than 45 days after the date of enactment of 

20 this section; 

21 (10) the term ‘‘wireless open access’’ shall be 

22 defined by the Federal Communications Commission 

23 not later than 45 days after the date of enactment 

24 of this section; and 


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1 (11) the term ‘‘wireless voice service’’ means 

2 the provision of two-way, real-time, voice commu3 nications using a mobile service. 

4 (k) REVIEW OF DEFINITIONS.—Not later than 3 

5 months after the date the NTIA makes a broadband in6 ventory map of the United States accessible to the public 

7 pursuant to section 6001(b), the Federal Communications 

8 Commission shall review the definitions of ‘‘underserved 

9 area’’ and ‘‘unserved area’’, as defined by the Commission 

10 within 45 days after the date of enactment of this Act 

11 (as required by paragraphs (8) and (9) of subsection (j)), 

12 and shall revise such definitions based on the data used 

13 by the NTIA to develop and maintain such map. 

14 SEC. 6003. NATIONAL BROADBAND PLAN. 

15 (a) REPORT REQUIRED.—Not later than 1 year after 

16 the date of enactment of this section, the Federal Commu17 nications Commission shall submit to the Committee on 

18 Energy and Commerce of the House of Representatives 

19 and the Committee on Commerce, Science, and Transpor20 tation of the Senate, a report containing a national 

21 broadband plan. 

22 (b) CONTENTS OF PLAN.—The national broadband 

23 plan required by this section shall seek to ensure that all 

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1 pability and shall establish benchmarks for meeting that 

2 goal. The plan shall also include— 

3 (1) an analysis of the most effective and effi4 cient mechanisms for ensuring broadband access by 

5 all people of the United States; 

6 (2) a detailed strategy for achieving afford7 ability of such service and maximum utilization of 

8 broadband infrastructure and service by the public; 

9 and 

10 (3) a plan for use of broadband infrastructure 

11 and services in advancing consumer welfare, civic 

12 participation, public safety and homeland security, 

13 community development, health care delivery, energy 

14 independence and efficiency, education, worker train15 ing, private sector investment, entrepreneurial activ16 ity, job creation and economic growth, and other na17 tional purposes. 

18 TITLE VII—ENERGY 

19 SEC. 7001. TECHNICAL CORRECTIONS TO THE ENERGY 

20 INDEPENDENCE AND SECURITY ACT OF 2007. 

21 (a) Section 543(a) of the Energy Independence and 

22 Security Act of 2007 (42 U.S.C. 17153(a)) is amended— 

23 (1) by redesignating paragraphs (2) through 

24 (4) as paragraphs (3) through (5), respectively; and 


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1 (2) by striking paragraph (1) and inserting the 

2 following: 

3 ‘‘(1) 34 percent to eligible units of local govern4 ment–alternative 1, in accordance with subsection 

5 (b); 

6 ‘‘(2) 34 percent to eligible units of local govern7 ment–alternative 2, in accordance with subsection 

8 (b);’’. 

9 (b) Section 543(b) of the Energy Independence and 

10 Security Act of 2007 (42 U.S.C. 17153(b)) is amended 

11 by striking ‘‘subsection (a)(1)’’ and inserting ‘‘subsection 

12 (a)(1) or (2)’’. 

13 (c) Section 548(a)(1) of the Energy Independence 

14 and Security Act of 2007 (42 U.S.C. 17158(a)(1)) is 

15 amending by striking ‘‘; provided’’ and all that follows 

16 through ‘‘541(3)(B)’’. 

17 SEC. 7002. AMENDMENTS TO TITLE XIII OF THE ENERGY 

18 INDEPENDENCE AND SECURITY ACT OF 2007. 

19 Title XIII of the Energy Independence and Security 

20 Act of 2007 (42 U.S.C. 17381 and following) is amended 

21 as follows: 

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

23 1304(b)(3) to read as follows: 

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

25 initiative, the Secretary shall provide financial 


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1 support to smart grid demonstration projects in 

2 urban, suburban, and rural areas, including 

3 areas where electric system assets are controlled 

4 by tax-exempt entities and areas where electric 

5 system assets are controlled by investor-owned 

6 utilities.’’. 

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

8 1304(b)(3) to read as follows: 

9 ‘‘(C) FEDERAL SHARE OF COST OF TECH10 NOLOGY INVESTMENTS.—The Secretary shall 

11 provide to an electric utility described in sub12 paragraph (B) or to other parties financial as13 sistance for use in paying an amount equal to 

14 not more than 50 percent of the cost of quali15 fying advanced grid technology investments 

16 made by the electric utility or other party to 

17 carry out a demonstration project.’’. 

18 (3) By inserting after section 1304(b)(3)(D) 

19 the following new subparagraphs: 

20 ‘‘(E) AVAILABILITY OF DATA.—The Sec21 retary shall establish and maintain a smart grid 

22 information clearinghouse in a timely manner 

23 which will make data from smart grid dem24 onstration projects and other sources available 

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1 cial assistance under this subsection, a utility or 

2 other participant in a smart grid demonstration 

3 project shall provide such information as the 

4 Secretary may require to become available 

5 through the smart grid information clearing6 house in the form and within the timeframes as 

7 directed by the Secretary. The Secretary shall 

8 assure that business proprietary information 

9 and individual customer information is not in10 cluded in the information made available 

11 through the clearinghouse. 

12 ‘‘(F) OPEN PROTOCOLS AND STAND13 ARDS.—The Secretary shall require as a condi14 tion of receiving funding under this subsection 

15 that demonstration projects utilize Internet16 based or other open protocols and standards if 

17 available and appropriate.’’. 

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

19 1304(c) to read as follows: 

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

21 may be necessary.’’. 

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

23 by striking ‘‘reimbursement of one-fifth (20 per24 cent)’’ and inserting ‘‘grants of up to one-half (50 

25 percent)’’. 


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1 (6) By striking the last sentence of subsection 

2 (b)(9) of section 1306. 

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

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

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

6 to read as follows: 

7 ‘‘(e) PROCEDURES AND RULES.—The Secretary 

8 shall— 

9 ‘‘(1) establish within 60 days after the enact10 ment of the American Recovery and Reinvestment 

11 Act of 2009 procedures by which applicants can ob12 tain grants of not more than one-half of their docu13 mented costs; 

14 ‘‘(2) require as a condition of receiving a grant 

15 under this section that grant recipients utilize Inter16 net-based or other open protocols and standards if 

17 available and appropriate; 

18 ‘‘(3) establish procedures to ensure that there is 

19 no duplication or multiple payment or recovery for 

20 the same investment or costs, that the grant goes to 

21 the party making the actual expenditures for quali22 fying smart grid investments, and that the grants 

23 made have significant effect in encouraging and fa24 cilitating the development of a smart grid; 


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

2 recipients, and qualifying smart grid investments 

3 which have received grants; 

4 ‘‘(5) establish procedures to provide advance 

5 payment of moneys up to the full amount of the 

6 grant award; and 

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

8 grants for investments that do not qualify in the 

9 reasonable judgment of the Secretary.’’. 

10 SEC. 7003. RENEWABLE ENERGY AND ELECTRIC POWER 

11 TRANSMISSION LOAN GUARANTEE PROGRAM. 

12 (a) AMENDMENT.—Title XVII of the Energy Policy 

13 Act of 2005 (42 U.S.C. 16511 et seq.) is amended by add14 ing the following at the end: 

15 ‘‘SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOY16 MENT OF RENEWABLE ENERGY AND ELEC17 TRIC POWER TRANSMISSION PROJECTS. 

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

19 the Secretary may make guarantees under this section 

20 only for commercial technology projects under subsection 

21 (b) that will commence construction not later than Sep22 tember 30, 2011. 

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

24 categories shall be eligible for support under this section: 


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1 ‘‘(1) Renewable energy systems, including incre2 mental hydropower, that generate electricity. 

3 ‘‘(2) Electric power transmission systems, in4 cluding upgrading and reconductoring projects. 

5 ‘‘(3) Leading edge biofuel projects that will use 

6 technologies performing at the pilot or demonstra7 tion scale that the Secretary determines are likely to 

8 become commercial technologies and will produce 

9 transportation fuels that substantially reduce life10 cycle greenhouse gas emissions compared to other 

11 transportation fuels. 

12 ‘‘(c) FACTORS RELATING TO ELECTRIC POWER

13 TRANSMISSION SYSTEMS.—In determining to make guar14 antees to projects described in subsection (b)(2), the Sec15 retary shall consider the following factors: 

16 ‘‘(1) The viability of the project without guar17 antees. 

18 ‘‘(2) The availability of other Federal and State 

19 incentives. 

20 ‘‘(3) The importance of the project in meeting 

21 reliability needs. 

22 ‘‘(4) The effect of the project in meeting a 

23 State or region’s environment (including climate 

24 change) and energy goals. 


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1 ‘‘(d) WAGE RATE REQUIREMENTS.—The Secretary 

2 shall require that each recipient of support under this sec3 tion provide reasonable assurance that all laborers and 

4 mechanics employed in the performance of the project for 

5 which the assistance is provided, including those employed 

6 by contractors or subcontractors, will be paid wages at 

7 rates not less than those prevailing on similar work in the 

8 locality as determined by the Secretary of Labor in accord9 ance with subchapter IV of chapter 31 of part A of subtitle 

10 II of title 40, United States Code (commonly referred to 

11 as the ‘Davis-Bacon Act’). 

12 ‘‘(e) LIMITATION.—Funding under this section for 

13 projects described in subsection (b)(3) shall not exceed 

14 $500,000,000. 

15 ‘‘(f) SUNSET.—The authority to enter into guaran16 tees under this section shall expire on September 30, 

17 2011.’’. 

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

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

20 by inserting after the item relating to section 1704 the 

21 following new item: 

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

electric power transmission projects.’’. 


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1 SEC. 7004. WEATHERIZATION ASSISTANCE PROGRAM 

2 AMENDMENTS. 

3 (a) INCOME LEVEL.—Section 412(7) of the Energy 

4 Conservation and Production Act (42 U.S.C. 6862(7)) is 

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

6 and inserting ‘‘200 percent’’. 

7 (b) ASSISTANCE LEVEL PER DWELLING UNIT.— 

8 Section 415(c)(1) of the Energy Conservation and Produc9 tion Act (42 U.S.C. 6865(c)(1)) is amended by striking 

10 ‘‘$2,500’’ and inserting ‘‘$5,000’’. 

11 (c) EFFECTIVE USE OF FUNDS.—In providing funds 

12 made available by this Act for the Weatherization Assist13 ance Program, the Secretary may encourage States to give 

14 priority to using such funds for the most cost-effective ef15 ficiency activities, which may include insulation of attics, 

16 if, in the Secretary’s view, such use of funds would in17 crease the effectiveness of the program. 

18 SEC. 7005. RENEWABLE ELECTRICITY TRANSMISSION 

19 STUDY. 

20 In completing the 2009 National Electric Trans21 mission Congestion Study, the Secretary of Energy shall 

22 include— 

23 (1) an analysis of the significant potential 

24 sources of renewable energy that are constrained in 

25 accessing appropriate market areas by lack of ade26 quate transmission capacity; 


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1 (2) an analysis of the reasons for failure to de2 velop the adequate transmission capacity; 

3 (3) recommendations for achieving adequate 

4 transmission capacity; 

5 (4) an analysis of the extent to which legal 

6 challenges filed at the State and Federal level are 

7 delaying the construction of transmission necessary 

8 to access renewable energy; and 

9 (5) an explanation of assumptions and projec10 tions made in the Study, including— 

11 (A) assumptions and projections relating 

12 to energy efficiency improvements in each load 

13 center; 

14 (B) assumptions and projections regarding 

15 the location and type of projected new genera16 tion capacity; and 

17 (C) assumptions and projections regarding 

18 projected deployment of distributed generation 

19 infrastructure. 

20 SEC. 7006. ADDITIONAL STATE ENERGY GRANTS. 

21 (a) IN GENERAL.—Amounts appropriated in para22 graph (6) under the heading ‘‘Department of Energy— 

23 Energy Programs—Energy Efficiency and Renewable En24 ergy’’ in title V of division A of this Act shall be available 

25 to the Secretary of Energy for making additional grants 


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1 under part D of title III of the Energy Policy and Con2 servation Act (42 U.S.C. 6321 et seq.). The Secretary 

3 shall make grants under this section in excess of the base 

4 allocation established for a State under regulations issued 

5 pursuant to the authorization provided in section 365(f) 

6 of such Act only if the governor of the recipient State noti7 fies the Secretary of Energy that the governor will seek, 

8 to the extent of his or her authority, to ensure that each 

9 of the following will occur: 

10 (1) The applicable State regulatory authority 

11 will implement the following regulatory policies for 

12 each electric and gas utility with respect to which 

13 the State regulatory authority has ratemaking au14 thority: 

15 (A) Policies that ensure that a utility’s re16 covery of prudent fixed costs of service is timely 

17 and independent of its retail sales, without in 

18 the process shifting prudent costs from variable 

19 to fixed charges. This cost shifting constraint 

20 shall not apply to rate designs adopted prior to 

21 the date of enactment of this Act. 

22 (B) Cost recovery for prudent investments 

23 by utilities in energy efficiency. 


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1 (C) An earnings opportunity for utilities 

2 associated with cost-effective energy efficiency 

3 savings. 

4 (2) The State, or the applicable units of local 

5 government that have authority to adopt building 

6 codes, will implement the following: 

7 (A) A building energy code (or codes) for 

8 residential buildings that meets or exceeds the 

9 most recently published International Energy 

10 Conservation Code, or achieves equivalent or 

11 greater energy savings. 

12 (B) A building energy code (or codes) for 

13 commercial buildings throughout the State that 

14 meets or exceeds the ANSI/ASHRAE/IESNA 

15 Standard 90.1–2007, or achieves equivalent or 

16 greater energy savings. 

17 (C) A plan for the jurisdiction achieving 

18 compliance with the building energy code or 

19 codes described in subparagraphs (A) and (B) 

20 within 8 years of the date of enactment of this 

21 Act in at least 90 percent of new and renovated 

22 residential and commercial building space. Such 

23 plan shall include active training and enforce24 ment programs and measurement of the rate of 

25 compliance each year. 


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1 (3) The State will to the extent practicable 

2 prioritize the grants toward funding energy effi3 ciency and renewable energy programs, including— 

4 (A) the expansion of existing energy effi5 ciency programs approved by the State or the 

6 appropriate regulatory authority, including en7 ergy efficiency retrofits of buildings and indus8 trial facilities, that are funded— 

9 (i) by the State; or 

10 (ii) through rates under the oversight 

11 of the applicable regulatory authority, to 

12 the extent applicable; 

13 (B) the expansion of existing programs, 

14 approved by the State or the appropriate regu15 latory authority, to support renewable energy 

16 projects and deployment activities, including 

17 programs operated by entities which have the 

18 authority and capability to manage and dis19 tribute grants, loans, performance incentives, 

20 and other forms of financial assistance; and 

21 (C) cooperation and joint activities between 

22 States to advance more efficient and effective 

23 use of this funding to support the priorities de24 scribed in this paragraph. 


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1 (b) STATE MATCH.—The State cost share require2 ment under the item relating to ‘‘DEPARTMENT OF 

3 ENERGY; energy conservation’’ in title II of the Depart4 ment of the Interior and Related Agencies Appropriations 

5 Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not 

6 apply to assistance provided under this section. 

7 (c) EQUIPMENT AND MATERIALS FOR ENERGY EFFI8 CIENCY MEASURES.—No limitation on the percentage of 

9 funding that may be used for the purchase and installation 

10 of equipment and materials for energy efficiency measures 

11 under grants provided under part D of title III of the En12 ergy Policy and Conservation Act (42 U.S.C. 6321 et seq.) 

13 shall apply to assistance provided under this section. 

14 SEC. 7007. INAPPLICABILITY OF LIMITATION. 

15 The limitations in section 399A(f)(2), (3), and (4) 

16 of the Energy Policy and Conservation Act (42 U.S.C. 

17 6371h–1(f)(2), (3), and (4)) shall not apply to grants 

18 funded with appropriations provided by this Act, except 

19 that such grant funds shall be available for not more than 

20 an amount equal to 80 percent of the costs of the project 

21 for which the grant is provided. 

22 SECTION 1. SHORT TITLE. 

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

24 Reinvestment Act of 2009’’. 


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1 SEC. 2. TABLE OF CONTENTS. 

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

DIVISION A—APPROPRIATIONS PROVISIONS 

TITLE I—AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG 

ADMINISTRATION, AND RELATED AGENCIES 

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

TITLE III—DEPARTMENT OF DEFENSE 

TITLE IV—ENERGY AND WATER DEVELOPMENT 

TITLE V—FINANCIAL SERVICES AND GENERAL GOVERNMENT 

TITLE VI—DEPARTMENT OF HOMELAND SECURITY 

TITLE VII—INTERIOR, ENVIRONMENT, AND RELATED AGENCIES 

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

TITLE IX—LEGISLATIVE BRANCH 

TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND 

RELATED AGENCIES 

TITLE XI—STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS 

TITLE XII—TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, 

AND RELATED AGENCIES 

TITLE XIII—HEALTH INFORMATION TECHNOLOGY 

TITLE XIV—STATE FISCAL STABILIZATION 

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 

3 SEC. 3. REFERENCES. 

4 Except as expressly provided otherwise, any reference 

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

6 be treated as referring only to the provisions of that divi7 sion. 


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1 DIVISION A—APPROPRIATIONS 

2 PROVISIONS 

3 That the following sums are appropriated, out of any 

4 money in the Treasury not otherwise appropriated, for the 

5 fiscal year ending September 30, 2009, and for other pur6 poses, namely: 

7 TITLE I—AGRICULTURE, RURAL DEVELOPMENT, 

8 FOOD AND DRUG ADMINISTRATION, AND RE9 LATED AGENCIES 

10 DEPARTMENT OF AGRICULTURE 

11 OFFICE OF THE SECRETARY

12 (INCLUDING TRANSFERS OF FUNDS)

13 For an additional amount for the ‘‘Office of the Sec14 retary’’, $200,000,000, to remain available until September 

15 30, 2010: Provided, That the Secretary may transfer these 

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

17 Service, for necessary replacement, modernization, or up18 grades of laboratories or other facilities to improve work19 place safety and mission-area efficiencies as deemed appro20 priate by the Secretary: Provided further, that the Secretary 

21 shall provide to the Committees on Appropriations of the 

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

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

24 Act. 


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1 OFFICE OF INSPECTOR GENERAL

2 For an additional amount for ‘‘Office of Inspector 

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

4 30, 2011, for oversight and audit of programs, grants, and 

5 activities funded under this title and an additional 

6 $17,500,000 for such purposes, to remain available until 

7 September 30, 2011. 

8 COOPERATIVE STATE RESEARCH, EDUCATION AND

9 ECONOMIC SERVICE

10 RESEARCH AND EDUCATION ACTIVITIES

11 For an additional amount for competitive grants au12 thorized at 7 U.S.C. 450(i)(b), $50,000,000, to remain 

13 available until September 30, 2010. 

14 FARM SERVICE AGENCY

15 AGRICULTURAL CREDIT INSURANCE FUND PROGRAM

16 ACCOUNT

17 For an additional amount for gross obligations for the 

18 principal amount of direct and guaranteed farm ownership 

19 (7 U.S.C 1922 et seq.) and operating (7 U.S.C. 1941 et seq.) 

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

21 Insurance Fund Program Account, as follows: farm owner22 ship loans, $400,000,000 of which $100,000,000 shall be for 

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

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


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1 $50,000,000 shall be for unsubsidized guaranteed loans and 

2 $200,000,000 shall be for direct loans. 

3 For an additional amount for the cost of direct and 

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

5 defined in section 502 of the Congressional Budget Act of 

6 1974, to remain available until September 30, 2010, as fol7 lows: farm ownership loans, $17,530,000 of which $330,000 

8 shall be for unsubsidized guaranteed loans and $17,200,000 

9 shall be for direct loans; and operating loans, $24,900,000 

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

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

12 Funds appropriated by this Act to the Agricultural 

13 Credit Insurance Fund Program Account for farm owner14 ship, operating, and emergency direct loans and unsub15 sidized guaranteed loans may be transferred among these 

16 programs: Provided, That the Committees on Appropria17 tions of both Houses of Congress are notified at least 15 

18 days in advance of any transfer. 

19 NATURAL RESOURCES CONSERVATION SERVICE

20 WATERSHED AND FLOOD PREVENTION OPERATIONS

21 For an additional amount for ‘‘Watershed and Flood 

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

23 until September 30, 2010. 


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1 WATERSHED REHABILITATION PROGRAM

2 For an additional amount for the ‘‘Watershed Reha3 bilitation Program’’, $65,000,000, to remain available until 

4 September 30, 2010. 

5 RURAL DEVELOPMENT SALARIES AND EXPENSES

6 For an additional amount for ‘‘Rural Development, 

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

8 until September 30, 2010. 

9 RURAL HOUSING SERVICE

10 RURAL HOUSING INSURANCE PROGRAM ACCOUNT

11 For an additional amount for gross obligations for the 

12 principal amount of direct and guaranteed loans as author13 ized by title V of the Housing Act of 1949, to be available 

14 from funds in the Rural Housing Insurance Fund Program 

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

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

17 guaranteed loans. 

18 For an additional amount for the cost of direct and 

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

20 defined in section 502 of the Congressional Budget Act of 

21 1974, to remain available until September 30, 2010, as fol22 lows: $67,000,000 for section 502 direct loans; and 

23 $133,000,000 for section 502 unsubsidized guaranteed 

24 loans. 


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1 RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

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

3 loan guarantees, and grants for rural community facilities 

4 programs as authorized by section 306 and described in sec5 tion 381E(d)(1) of the Consolidated Farm and Rural Devel6 opment Act, $127,000,000, to remain available until Sep7 tember 30, 2010. 

8 RURAL BUSINESS—COOPERATIVE SERVICE

9 RURAL BUSINESS PROGRAM ACCOUNT

10 For an additional amount for the cost of guaranteed 

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

12 and 310B(c) of the Consolidated Farm and Rural Develop13 ment Act (7 U.S.C. 1932), $150,000,000, to remain avail14 able until September 30, 2010. 

15 BIOREFINERY ASSISTANCE

16 For the cost of loan guarantees and grants, as author17 ized by section 9003 of the Farm Security and Rural In18 vestment Act of 2002 (7 U.S.C. 8103), $200,000,000, to re19 main available until September 30, 2010. 

20 RURAL ENERGY FOR AMERICA PROGRAM

21 For an additional amount for the cost of loan guaran22 tees and grants, as authorized by section 9007 of the Farm 

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

24 8107), $50,000,000, to remain available until September 

25 30, 2010: Provided, That these funds may be used by tribes, 


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

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

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

4 RURAL UTILITIES SERVICE

5 RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

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

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

8 water, waste disposal, and solid waste management pro9 grams authorized by sections 306, 306A, 306C, 306D, and 

10 310B and described in sections 306C(a)(2), 306D, and 

11 381E(d)(2) of the Consolidated Farm and Rural Develop12 ment Act, $1,375,000,000, to remain available until Sep13 tember 30, 2010. 

14 DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND

15 PROGRAM ACCOUNT

16 For an additional amount for direct loans and grants 

17 for distance learning and telemedicine services in rural 

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

19 $100,000,000, to remain available until September 30, 

20 2010. 

21 FOOD AND NUTRITION SERVICE

22 CHILD NUTRITION PROGRAMS

23 For additional amount for the Richard B. Russell Na24 tional School Lunch Act (42 U.S.C. 1751 et. seq.), except 

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


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1 1771 et. seq.), except sections 17 and 21, $100,000,000, to 

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

3 a grant program for National School Lunch Program 

4 equipment assistance: Provided, That such funds shall be 

5 provided to States administering a school lunch program 

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

7 of lunches served in the Program during the second pre8 ceding fiscal year bears to the total number of such lunches 

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

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

11 approve the reserve by States of up to $20,000,000 for nec12 essary enhancements to the State Distributing Agency’s 

13 commodity ordering and management system to achieve 

14 compatibility with the Department’s web-based supply 

15 chain management system: Provided further, That of the 

16 funds remaining, the State shall provide competitive grants 

17 to school food authorities based upon the need for equipment 

18 assistance in participating schools with priority given to 

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

20 are eligible for free or reduced price meals under the Rich21 ard B. Russell National School Lunch Act and priority 

22 given to schools purchasing equipment for the purpose of 

23 offering more healthful foods and meals, in accordance with 

24 standards established by the Secretary. 


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1 SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR

2 WOMEN, INFANTS, AND CHILDREN (WIC)

3 For an additional amount for the special supplemental 

4 nutrition program as authorized by section 17 of the Child 

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

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

7 $380,000,000 shall be placed in reserve to be allocated as 

8 the Secretary deems necessary, notwithstanding section 

9 17(i) of such Act, to support participation should cost or 

10 participation exceed budget estimates, and of which 

11 $120,000,000 shall be for the purposes specified in section 

12 17(h)(10)(B)(ii): Provided, That up to one percent of the 

13 funding provided for the purposes specified in section 

14 17(h)(10)(B)(ii) may be reserved by the Secretary for Fed15 eral administrative activities in support of those purposes. 

16 COMMODITY ASSISTANCE PROGRAM

17 For an additional amount for the ‘‘Commodity Assist18 ance Program’’, to remain available until September 30, 

19 2010, $150,000,000, which the Secretary shall use to pur20 chase a variety of commodities as authorized by the Com21 modity Credit Corporation or under section 32 of the Act 

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

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

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

25 the commodities to States for distribution in accordance 


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1 with section 214 of the Emergency Food Assistance Act of 

2 1983 (Public Law 98–8; 7 U.S.C. 612c note): Provided fur3 ther, That of the funds made available, the Secretary may 

4 use up to $50,000,000 for costs associated with the distribu5 tion of commodities. 

6 GENERAL PROVISIONS—THIS TITLE 

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

8 available to the United States Department of Agriculture 

9 for broadband direct loans and loan guarantees, as author10 ized under title VI of the Rural Electrification Act of 1936 

11 (7 U.S.C. 950bb) and for grants, shall be available for 

12 broadband infrastructure in any area of the United States 

13 notwithstanding title VI of the Rural Electrification Act of 

14 1936: Provided, That at least 75 percent of the area served 

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

16 loan guarantees is in a rural area without sufficient access 

17 to high speed broadband service to facilitate rural economic 

18 development, as determined by the Secretary: Provided fur19 ther, That priority for awarding funds made available 

20 under this paragraph shall be given to projects that provide 

21 service to the highest proportion of rural residents that do 

22 not have sufficient access to broadband service: Provided 

23 further, That priority for awarding such funds shall be 

24 given to project applications that demonstrate that, if the 

25 application is approved, all project elements will be fully 


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1 funded: Provided further, That priority for awarding such 

2 funds shall be given to activities that can commence 

3 promptly following approval: Provided further, That the 

4 Department shall submit a report on planned spending and 

5 actual obligations describing the use of these funds not later 

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

7 quarterly thereafter until all funds are obligated, to the 

8 Committees on Appropriations of the House of Representa9 tives and the Senate. 

10 SEC. 102. NUTRITION FOR ECONOMIC RECOVERY. 

11 (a) MAXIMUM BENEFIT INCREASES.— 

12 (1) ECONOMIC RECOVERY 1-MONTH BEGINNING

13 STIMULUS PAYMENT.—For the first month that begins 

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

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

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

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

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

19 2017(a)) by 85 percent. 

20 (2) REMAINDER OF FISCAL YEAR 2009.—Begin21 ning with the second month that begins not less than 

22 25 days after the date of enactment of this Act, and 

23 for each subsequent month through the month ending 

24 September 30, 2009, the Secretary shall increase the 

25 cost of the thrifty food plan for purposes of section 


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1 8(a) of the Food and Nutrition Act of 2008 (7 U.S.C. 

2 2017(a)) by 12 percent. 

3 (3) SUBSEQUENT INCREASE FOR FISCAL YEAR

4 2010.—Beginning on October 1, 2009, and for each 

5 subsequent month through the month ending Sep6 tember 30, 2010, the Secretary shall increase the cost 

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

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

9 2017(a)) by an amount equal to 12 percent, less the 

10 percentage by which the Secretary determines the 

11 thrifty food plan would otherwise be adjusted on Octo12 ber 1, 2009, as required under section 3(u) of that Act 

13 (7 U.S.C. 2012(u)), if the percentage is less than 12 

14 percent. 

15 (4) SUBSEQUENT INCREASE FOR FISCAL YEAR

16 2011.—Beginning on October 1, 2010, and for each 

17 subsequent month through the month ending Sep18 tember 30, 2011, the Secretary shall increase the cost 

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

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

21 2017(a)) by an amount equal to 12 percent, less the 

22 sum of the percentages by which the Secretary deter23 mines the thrifty food plan would otherwise be ad24 justed on October 1, 2009 and October 1, 2010, as re25 quired under section 3(u) of that Act (7 U.S.C. 


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1 2012(u)), if the sum of such percentages is less than 

2 12 percent. 

3 (5) TERMINATION OF EFFECTIVENESS.—Effective 

4 beginning October 1, 2011, the authority provided by 

5 this subsection terminates and has no effect. 

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

7 the Secretary shall— 

8 (1) consider the benefit increases described in 

9 subsection (a) to be a mass change; 

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

11 households of the changes in benefits; 

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

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

14 apply to any errors in the implementation of this sec15 tion, without regard to the 120-day limit described in 

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

17 (4) disregard the additional amount of benefits 

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

19 determining the amount of overissuances under sec20 tion 13 of the Food and Nutrition Act of 2008 (7 

21 U.S.C. 2022) and the hours of participation in a pro22 gram under section 6(d), 20, or 26 of that Act (7 

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

24 (5) set the tolerance level for excluding small er25 rors for the purposes of section 16(c) of the Food and 


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

2 the period that the benefit increase under subsection 

3 (a) is in effect. 

4 (c) ADMINISTRATIVE EXPENSES.— 

5 (1) IN GENERAL.—For the costs of State admin6 istrative expenses associated with carrying out this 

7 section and administering the supplemental nutrition 

8 assistance program established under the Food and 

9 Nutrition Act of 2008 (7 U.S.C. 2011 et seq.) (re10 ferred to in this section as the ‘‘supplemental nutri11 tion assistance program’’) during a period of rising 

12 program caseloads, and for the expenses of the Sec13 retary under paragraph (6), the Secretary shall make 

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

15 and 2010, to remain available through September 30, 

16 2010. 

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

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

19 the Secretary shall make available to States amounts 

20 for fiscal year 2009 under paragraph (1). 

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

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

23 shall be made available to States that meet the re24 quirements of paragraph (5) as grants to State agen25 cies for each fiscal year as follows: 


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1 (A) 75 percent of the amounts available for 

2 each fiscal year shall be allocated to States based 

3 on the share of each State of households that par4 ticipate in the supplemental nutrition assistance 

5 program as reported to the Department of Agri6 culture for the most recent 12-month period for 

7 which data are available, adjusted by the Sec8 retary (in the discretion of the Secretary) for 

9 participation in disaster programs under section 

10 5(h) of the Food and Nutrition Act of 2008 (7 

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

12 (B) 25 percent of the amounts available for 

13 each fiscal year shall be allocated to States based 

14 on the increase in the number of households that 

15 participate in the supplemental nutrition assist16 ance program as reported to the Department of 

17 Agriculture over the most recent 12-month period 

18 for which data are available, adjusted by the 

19 Secretary (in the discretion of the Secretary) for 

20 participation in disaster programs under section 

21 5(h) of the Food and Nutrition Act of 2008 (7 

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

23 (4) REDISTRIBUTION.—The Secretary shall de24 termine an appropriate procedure for redistribution 

25 of amounts allocated to States that would otherwise be 


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1 provided allocations under paragraph (3) for a fiscal 

2 year but that do not meet the requirements of para3 graph (5). 

4 (5) MAINTENANCE OF EFFORT.— 

5 (A) DEFINITION OF SPECIFIED STATE AD6 MINISTRATIVE COSTS.—In this paragraph: 

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

8 State administrative costs’’ includes all 

9 State administrative costs under the supple10 mental nutrition assistance program. 

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

12 State administrative costs’’ does not in13 clude— 

14 (I) the costs of employment and 

15 training programs under section 6(d), 

16 20, or 26 of the Food and Nutrition 

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

18 2035); 

19 (II) the costs of nutrition edu20 cation under section 11(f) of that Act 

21 (7 U.S.C. 2020(f)); and 

22 (III) any other costs the Secretary 

23 determines should be excluded. 

24 (B) REQUIREMENT.—The Secretary shall 

25 make funds under this subsection available only 


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1 to States that, as determined by the Secretary, 

2 maintain State expenditures on specified State 

3 administrative costs. 

4 (6) MONITORING AND EVALUATION.—Of the 

5 amounts made available under paragraph (1), the 

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

7 incurred by the Secretary in monitoring the integrity 

8 and evaluating the effects of the payments made 

9 under this section. 

10 (d) FOOD DISTRIBUTION PROGRAM ON INDIAN RES11 ERVATIONS.—For the costs of administrative expenses asso12 ciated with the food distribution program on Indian res13 ervations established under section 4(b) of the Food and Nu14 trition Act of 2008 (7 U.S.C. 2013(b)), the Secretary shall 

15 make available $5,000,000, to remain available until Sep16 tember 30, 2010. 

17 (e) CONSOLIDATED BLOCK GRANTS FOR PUERTO RICO

18 AND AMERICAN SAMOA.— 

19 (1) FISCAL YEAR 2009.— 

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

21 Secretary shall increase by 12 percent the 

22 amount available for nutrition assistance for eli23 gible households under the consolidated block 

24 grants for the Commonwealth of Puerto Rico and 


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1 American Samoa under section 19 of the Food 

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

3 (B) AVAILABILITY OF FUNDS.—Funds made 

4 available under subparagraph (A) shall remain 

5 available through September 30, 2010. 

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

7 Secretary shall increase the amount available for nu8 trition assistance for eligible households under the 

9 consolidated block grants for the Commonwealth of 

10 Puerto Rico and American Samoa under section 19 

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

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

13 Secretary determines the consolidated block grants 

14 would otherwise be adjusted on October 1, 2009, as re15 quired by section 19(a)(2)(A)(ii) of that Act (7 U.S.C. 

16 2028(a)(2)(A)(ii)), if the percentage is less than 12 

17 percent. 

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

19 Secretary shall increase the amount available for nu20 trition assistance for eligible households under the 

21 consolidated block grants for the Commonwealth of 

22 Puerto Rico and American Samoa under section 19 

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

24 2028) by 12 percent, less the sum of the percentages 

25 by which the Secretary determines the consolidated 


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1 block grants would otherwise be adjusted on October 

2 1, 2009, and October 1, 2010, as required by section 

3 19(a)(2)(A)(ii) of that Act (7 U.S.C. 

4 2028(a)(2)(A)(ii)), if the sum of the percentages is 

5 less than 12 percent. 

6 (f) TREATMENT OF JOBLESS WORKERS.— 

7 (1) REMAINDER OF FISCAL YEAR 2009 THROUGH

8 FISCAL YEAR 2011.—Beginning with the first month 

9 that begins not less than 25 days after the date of en10 actment of this Act and for each subsequent month 

11 through September 30, 2011, eligibility for supple12 mental nutrition assistance program benefits shall not 

13 be limited under section 6(o)(2) of the Food and Nu14 trition Act of 2008 unless an individual does not 

15 comply with the requirements of a program offered by 

16 the State agency that meets the standards of subpara17 graphs (B) or (C) of that paragraph. 

18 (2) FISCAL YEAR 2012 AND THEREAFTER.—Be19 ginning on October 1, 2011, for the purposes of sec20 tion 6(o) of the Food and Nutrition Act of 2008 (7 

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

22 period during which an individual received benefits 

23 under the supplemental nutrition assistance program 

24 prior to October 1, 2011. 


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1 (g) FUNDING.—There are appropriated to the Sec2 retary out of funds of the Treasury not otherwise appro3 priated such sums as are necessary to carry out this section. 

4 SEC. 103. AGRICULTURAL DISASTER ASSISTANCE

5 TRANSITION. (a) FEDERAL CROP INSURANCE ACT.—Sec6 tion 531(g) of the Federal Crop Insurance Act (7 U.S.C. 

7 1531(g)) is amended by adding at the end the following: 

8 ‘‘(7) 2008 TRANSITION ASSISTANCE.— 

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

10 farm described in subparagraph (A) of para11 graph (4) that failed to timely pay the appro12 priate fee described in that subparagraph shall 

13 be eligible for assistance under this section in ac14 cordance with subparagraph (B) if the eligible 

15 producers on the farm— 

16 ‘‘(i) pay the appropriate fee described 

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

18 after the date of enactment of this para19 graph; and 

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

21 commodity of the eligible producers on the 

22 farm, excluding grazing land, agree to ob23 tain a policy or plan of insurance under 

24 subtitle A (excluding a crop insurance pilot 

25 program under that subtitle) for the next 


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1 insurance year for which crop insurance is 

2 available to the eligible producers on the 

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

5 average yield indemnified at 100 percent of 

6 the expected market price, or an equivalent 

7 coverage; and 

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

9 commodity of the eligible producers on the 

10 farm, agree to file the required paperwork, 

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

14 2009 crop year. 

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

16 producers on a farm that meet the requirements 

17 of subparagraph (A) shall be eligible to receive 

18 assistance under this section as if the eligible 

19 producers on the farm— 

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

22 had obtained a policy or plan of insurance 

23 for the 2008 crop year at a level of coverage 

24 not to exceed 70 percent or more of the re25 corded or appraised average yield indemVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00698 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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1 nified at 100 percent of the expected market 

2 price, or an equivalent coverage; and 

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

4 commodity of the eligible producers on the 

5 farm, had filed the required paperwork, and 

6 paid the administrative fee by the applica7 ble State filing deadline, for the noninsured 

8 crop assistance program for the 2008 crop 

9 year, except that in determining yield 

10 under that program, the Secretary shall use 

11 a percentage that is 70 percent. 

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

14 a farm that met the requirements of paragraph 

15 (1) before the deadline described in paragraph 

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

17 disaster assistance payment under this section 

18 for a production loss during the 2008 crop year 

19 shall be eligible to receive an additional amount 

20 equal to the greater of— 

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

22 calculated under subparagraph (B) if the el23 igible producers on the farm had paid the 

24 appropriate fee under that subparagraph; 

25 or 


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

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

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

6 ‘115 percent’; and 

7 ‘‘(II) in clause (ii) of that sub8 paragraph, ‘125’ is substituted for ‘120 

9 percent’. 

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

11 available under this paragraph, the Secretary 

12 may make such adjustments as are necessary to 

13 ensure that no producer receives a payment 

14 under this paragraph for an amount in excess of 

15 the assistance received by a similarly situated 

16 producer that had purchased the same or higher 

17 level of crop insurance prior to the date of enact18 ment of this paragraph. 

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

20 Secretary may provide such additional assist21 ance as the Secretary considers appropriate to 

22 provide equitable treatment for eligible producers 

23 on a farm that suffered production losses in the 

24 2008 crop year that result in multiyear produc25 tion losses, as determined by the Secretary. 


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

2 any other provision of this section, the Secretary 

3 may provide assistance under this section to eli4 gible producers on a farm that— 

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

6 natural cause during the 2008 crop year; 

7 and 

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

9 ‘‘(I)(aa) except as provided in 

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

11 plan of insurance under subtitle A; or 

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

13 agreement because 1 or more farming 

14 practices, which the Secretary has de15 termined are good farming practices, of 

16 the eligible producers on the farm dif17 fer significantly from the farming 

18 practices used by producers of the same 

19 crop in other regions of the United 

20 States; and 

21 ‘‘(II) are not eligible for the non22 insured crop disaster assistance pro23 gram established by section 196 of the 

24 Federal Agriculture Improvement and 

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


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

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

3 the end the following: 

4 ‘‘(7) 2008 TRANSITION ASSISTANCE.— 

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

6 farm described in subparagraph (A) of para7 graph (4) that failed to timely pay the appro8 priate fee described in that subparagraph shall 

9 be eligible for assistance under this section in ac10 cordance with subparagraph (B) if the eligible 

11 producers on the farm— 

12 ‘‘(i) pay the appropriate fee described 

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

14 after the date of enactment of this para15 graph; and 

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

17 commodity of the eligible producers on the 

18 farm, excluding grazing land, agree to ob19 tain a policy or plan of insurance under the 

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

21 et seq.) (excluding a crop insurance pilot 

22 program under that Act) for the next insur23 ance year for which crop insurance is avail24 able to the eligible producers on the farm at 

25 a level of coverage equal to 70 percent or 


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1 more of the recorded or appraised average 

2 yield indemnified at 100 percent of the ex3 pected market price, or an equivalent cov4 erage; and 

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

6 commodity of the eligible producers on the 

7 farm, agree to file the required paperwork, 

8 and pay the administrative fee by the ap9 plicable State filing deadline, for the non10 insured crop assistance program for the 

11 2009 crop year. 

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

13 producers on a farm that meet the requirements 

14 of subparagraph (A) shall be eligible to receive 

15 assistance under this section as if the eligible 

16 producers on the farm— 

17 ‘‘(i) in the case of each insurable com18 modity of the eligible producers on the farm, 

19 had obtained a policy or plan of insurance 

20 for the 2008 crop year at a level of coverage 

21 not to exceed 70 percent or more of the re22 corded or appraised average yield indem23 nified at 100 percent of the expected market 

24 price, or an equivalent coverage; and 


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

2 commodity of the eligible producers on the 

3 farm, had filed the required paperwork, and 

4 paid the administrative fee by the applica5 ble State filing deadline, for the noninsured 

6 crop assistance program for the 2008 crop 

7 year, except that in determining yield 

8 under that program, the Secretary shall use 

9 a percentage that is 70 percent. 

10 ‘‘(C) EQUITABLE RELIEF.—Except as pro11 vided in subparagraph (D), eligible producers on 

12 a farm that met the requirements of paragraph 

13 (1) before the deadline described in paragraph 

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

15 disaster assistance payment under this section 

16 for a production loss during the 2008 crop year 

17 shall be eligible to receive an additional amount 

18 equal to the greater of— 

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

20 calculated under subparagraph (B) if the el21 igible producers on the farm had paid the 

22 appropriate fee under that subparagraph; 

23 or 


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

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

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

6 ‘115 percent’; and 

7 ‘‘(II) in clause (ii) of that sub8 paragraph, ‘125’ is substituted for ‘120 

9 percent’. 

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

11 available under this paragraph, the Secretary 

12 may make such adjustments as are necessary to 

13 ensure that no producer receives a payment 

14 under this paragraph for an amount in excess of 

15 the assistance received by a similarly situated 

16 producer that had purchased the same or higher 

17 level of crop insurance prior to the date of enact18 ment of this paragraph. 

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

20 Secretary may provide such additional assist21 ance as the Secretary considers appropriate to 

22 provide equitable treatment for eligible producers 

23 on a farm that suffered production losses in the 

24 2008 crop year that result in multiyear produc25 tion losses, as determined by the Secretary. 


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

2 any other provision of this section, the Secretary 

3 may provide assistance under this section to eli4 gible producers on a farm that— 

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

6 natural cause during the 2008 crop year; 

7 and 

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

9 ‘‘(I)(aa) except as provided in 

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

11 plan of insurance under subtitle A; or 

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

13 agreement because 1 or more farming 

14 practices, which the Secretary has de15 termined are good farming practices, of 

16 the eligible producers on the farm dif17 fer significantly from the farming 

18 practices used by producers of the same 

19 crop in other regions of the United 

20 States; and 

21 ‘‘(II) are not eligible for the non22 insured crop disaster assistance pro23 gram established by section 196 of the 

24 Federal Agriculture Improvement and 

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


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1 (c) EMERGENCY LOANS.— 

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

3 direct emergency loans under section 321 of the Con4 solidated Farm and Rural Development Act (7 U.S.C. 

5 1961), $200,000,000. 

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

7 direct emergency loans, including the cost of modi8 fying loans, as defined in section 502 of the Congres9 sional Budget Act of 1974 (2 U.S.C. 661a), 

10 $28,440,000, to remain available until September 30, 

11 2010. 

12 (d) 2008 AQUACULTURE ASSISTANCE.— 

13 (1) DEFINITIONS.—In this subsection: 

14 (A) ELIGIBLE AQUACULTURE PRODUCER.— 

15 The term ‘‘eligible aquaculture producer’’ means 

16 an aquaculture producer that during the 2008 

17 calendar year, as determined by the Secretary— 

18 (i) produced an aquaculture species for 

19 which feed costs represented a substantial 

20 percentage of the input costs of the aqua21 culture operation; and 

22 (ii) experienced a substantial price in23 crease of feed costs above the previous 5-year 

24 average. 


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

2 means the Secretary of Agriculture. 

3 (2) GRANT PROGRAM.— 

4 (A) IN GENERAL.—Of the funds of the Com5 modity Credit Corporation, the Secretary shall 

6 use not more than $50,000,000, to remain avail7 able until September 30, 2010, to carry out a 

8 program of grants to States to assist eligible 

9 aquaculture producers for losses associated with 

10 high feed input costs during the 2008 calendar 

11 year. 

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

13 after the date of enactment of this Act, the Sec14 retary shall notify the State department of agri15 culture (or similar entity) in each State of the 

16 availability of funds to assist eligible aqua17 culture producers, including such terms as deter18 mined by the Secretary to be necessary for the 

19 equitable treatment of eligible aquaculture pro20 ducers. 

21 (C) PROVISION OF GRANTS.— 

22 (i) IN GENERAL.—The Secretary shall 

23 make grants to States under this subsection 

24 on a pro rata basis based on the amount of 

25 aquaculture feed used in each State during 


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1 the 2007 calendar year, as determined by 

2 the Secretary. 

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

4 after the date of enactment of this Act, the 

5 Secretary shall make grants to States to 

6 provide assistance under this subsection. 

7 (D) REQUIREMENTS.—The Secretary shall 

8 make grants under this subsection only to States 

9 that demonstrate to the satisfaction of the Sec10 retary that the State will— 

11 (i) use grant funds to assist eligible 

12 aquaculture producers; 

13 (ii) provide assistance to eligible aqua14 culture producers not later than 60 days 

15 after the date on which the State receives 

16 grant funds; and 

17 (iii) not later than 30 days after the 

18 date on which the State provides assistance 

19 to eligible aquaculture producers, submit to 

20 the Secretary a report that describes— 

21 (I) the manner in which the State 

22 provided assistance; 

23 (II) the amounts of assistance 

24 provided per species of aquaculture; 

25 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 


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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 TrafVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00719 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 deterVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00726 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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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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 

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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 

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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: ProVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00748 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 judgVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00755 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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. 

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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): 

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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 

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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 

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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 

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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 

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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 ComVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00797 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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 

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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 DeVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00829 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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; 

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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 VetVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00852 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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 ComVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00861 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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 

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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, 

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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 

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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 

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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: 

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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 secVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00901 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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 

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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.— 

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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, 

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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

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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 

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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 

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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. 

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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 

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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 

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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 

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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 

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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 

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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 

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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 

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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; 

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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 

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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.— 

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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 notifiVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 00990 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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 

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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 

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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 achieveVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01045 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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). 

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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 

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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 applicaVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01078 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 hobVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01098 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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 

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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 

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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 faVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01120 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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-JANUVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01143 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 accelVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01144 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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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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 

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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 

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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 elecVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01198 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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 

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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 benVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01234 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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 ExVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01241 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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 esVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01250 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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) 

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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 

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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 

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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 

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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 

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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 

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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 

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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 

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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 

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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 

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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 

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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 

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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 

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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. 

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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 

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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 

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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 

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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 desVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01310 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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 SecVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01322 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 subparaVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01326 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 

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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 

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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 

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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 

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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 

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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 

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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 

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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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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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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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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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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 


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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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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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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 

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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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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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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 

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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 

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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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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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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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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 agVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01363 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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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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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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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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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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 

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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 

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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 

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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 

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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 

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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 

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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 goldVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01421 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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 BankVerDate Nov 24 2008 23:49 Feb 10, 2009 Jkt 079200 PO 00000 Frm 01425 Fmt 6652 Sfmt 6203 E:\BILLS\H1.PP H1

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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. 

Passed the House of Representatives January 28, 

2009. 

Attest: LORRAINE C. MILLER, 

Clerk. 

Passed the Senate February 10, 2009. 

Attest: NANCY ERICKSON, 

Secretary. 


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