VI 

AMENDMENT NO. 570 

Purpose: In the nature of a substitute. 

IN THE SENATE OF THE UNITED STATES—111th Cong., 1st Sess. 

H. R. 1 

Making supplemental appropriations for job preservation and 

creation, infrastructure investment, energy efficiency and 

science, assistance to the unemployed, and State and 

local fiscal stabilization, for the fiscal year ending September 30, 2009, and for other purposes. 

February 7, 2009 

Ordered to lie on the table and to be printed 

Intended to be proposed by Ms. COLLINS (for herself and 

Mr. NELSON of Nebraska) 

Viz: 

1 Strike out all after the enacting clause and insert the 

2 following: 

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—APPROPRIATIONS PROVISIONS 

TITLE I—AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG 

ADMINISTRATION, AND RELATED AGENCIES 

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

TITLE III—DEPARTMENT OF DEFENSE 


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TITLE IV—ENERGY AND WATER DEVELOPMENT 

TITLE V—FINANCIAL SERVICES AND GENERAL GOVERNMENT 

TITLE VI—DEPARTMENT OF HOMELAND SECURITY 

TITLE VII—INTERIOR, ENVIRONMENT, AND RELATED AGENCIES 

TITLE VIII—DEPARTMENTS OF LABOR, HEALTH AND HUMAN 

SERVICES, AND EDUCATION, AND RELATED AGENCIES 

TITLE IX—LEGISLATIVE BRANCH 

TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND 

RELATED AGENCIES 

TITLE XI—STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS 

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

TITLE XIII—HEALTH INFORMATION TECHNOLOGY 

TITLE XIV—STATE FISCAL STABILIZATION 

TITLE XV—RECOVERY ACCOUNTABILITY AND TRANSPARENCY 

BOARD AND RECOVERY INDEPENDENT ADVISORY 

PANEL 

TITLE XVI—GENERAL PROVISIONS—THIS ACT 

DIVISION B—TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL 

RELIEF, AND OTHER PROVISIONS 

TITLE I—TAX PROVISIONS 

TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES 

TITLE III—HEALTH INSURANCE ASSISTANCE 

TITLE IV—HEALTH INFORMATION TECHNOLOGY 

TITLE V—STATE FISCAL RELIEF 

1 SEC. 3. REFERENCES. 

2 Except as expressly provided otherwise, any reference 

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

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

6 DIVISION A—APPROPRIATIONS 

7 PROVISIONS 

8 That the following sums are appropriated, out of any 

9 money in the Treasury not otherwise appropriated, for the 

10 fiscal year ending September 30, 2009, and for other pur11 poses, namely: 


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AMDT. NO. 570 

1 TITLE I—AGRICULTURE, RURAL DEVELOP2 MENT, FOOD AND DRUG ADMINISTRATION, 

3 AND RELATED AGENCIES 

4 DEPARTMENT OF AGRICULTURE 

5 OFFICE OF THE SECRETARY

6 (INCLUDING TRANSFERS OF FUNDS)

7 For an additional amount for the ‘‘Office of the Sec8 retary’’, $200,000,000, to remain available until Sep9 tember 30, 2010: Provided, That the Secretary may trans10 fer these funds to agencies of the Department, other than 

11 the Forest Service, for necessary replacement, moderniza12 tion, or upgrades of laboratories or other facilities to im13 prove workplace safety and mission-area efficiencies as 

14 deemed appropriate by the Secretary: Provided further, 

15 that the Secretary shall provide to the Committees on Ap16 propriations of the House and Senate a plan on the alloca17 tion of these funds no later than 60 days after the date 

18 of enactment of this Act. 

19 OFFICE OF INSPECTOR GENERAL

20 For an additional amount for ‘‘Office of Inspector 

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

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

23 activities funded under this title and an additional 

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

25 September 30, 2011. 


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1 COOPERATIVE STATE RESEARCH, EDUCATION AND

2 ECONOMIC SERVICE

3 RESEARCH AND EDUCATION ACTIVITIES

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

6 available until September 30, 2010. 

7 FARM SERVICE AGENCY

8 AGRICULTURAL CREDIT INSURANCE FUND PROGRAM

9 ACCOUNT

10 For an additional amount for gross obligations for 

11 the principal amount of direct and guaranteed farm own12 ership (7 U.S.C 1922 et seq.) and operating (7 U.S.C. 

13 1941 et seq.) loans, to be available from funds in the Agri14 cultural Credit Insurance Fund Program Account, as fol15 lows: farm ownership loans, $400,000,000 of which 

16 $100,000,000 shall be for unsubsidized guaranteed loans 

17 and $300,000,000 shall be for direct loans; and operating 

18 loans, $250,000,000 of which $50,000,000 shall be for un19 subsidized guaranteed loans and $200,000,000 shall be for 

20 direct loans. 

21 For an additional amount for the cost of direct and 

22 guaranteed loans, including the cost of modifying loans, 

23 as defined in section 502 of the Congressional Budget Act 

24 of 1974, to remain available until September 30, 2010, 

25 as follows: farm ownership loans, $17,530,000 of which 


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1 $330,000 shall be for unsubsidized guaranteed loans and 

2 $17,200,000 shall be for direct loans; and operating loans, 

3 $24,900,000 of which $1,300,000 shall be for unsub4 sidized guaranteed loans and $23,600,000 shall be for di5 rect loans. 

6 Funds appropriated by this Act to the Agricultural 

7 Credit Insurance Fund Program Account for farm owner8 ship, operating, and emergency direct loans and unsub9 sidized guaranteed loans may be transferred among these 

10 programs: Provided, That the Committees on Appropria11 tions of both Houses of Congress are notified at least 15 

12 days in advance of any transfer. 

13 NATURAL RESOURCES CONSERVATION SERVICE

14 WATERSHED AND FLOOD PREVENTION OPERATIONS

15 For an additional amount for ‘‘Watershed and Flood 

16 Prevention Operations’’, $275,000,000, to remain avail17 able until September 30, 2010. 

18 WATERSHED REHABILITATION PROGRAM

19 For an additional amount for the ‘‘Watershed Reha20 bilitation Program’’, $65,000,000, to remain available 

21 until September 30, 2010. 

22 RURAL DEVELOPMENT SALARIES AND EXPENSES

23 For an additional amount for ‘‘Rural Development, 

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

25 until September 30, 2010. 


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AMDT. NO. 570 

1 RURAL HOUSING SERVICE

2 RURAL HOUSING INSURANCE PROGRAM ACCOUNT

3 For an additional amount for gross obligations for 

4 the principal amount of direct and guaranteed loans as 

5 authorized by title V of the Housing Act of 1949, to be 

6 available from funds in the Rural Housing Insurance 

7 Fund Program Account, as follows: $1,000,000,000 for 

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

9 502 unsubsidized guaranteed loans. 

10 For an additional amount for the cost of direct and 

11 guaranteed loans, including the cost of modifying loans, 

12 as defined in section 502 of the Congressional Budget Act 

13 of 1974, to remain available until September 30, 2010, 

14 as follows: $67,000,000 for section 502 direct loans; and 

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

16 loans. 

17 RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT

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

19 loan guarantees, and grants for rural community facilities 

20 programs as authorized by section 306 and described in 

21 section 381E(d)(1) of the Consolidated Farm and Rural 

22 Development Act, $127,000,000, to remain available until 

23 September 30, 2010. 


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1 RURAL BUSINESS—COOPERATIVE SERVICE

2 RURAL BUSINESS PROGRAM ACCOUNT

3 For an additional amount for the cost of guaranteed 

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

5 and 310B(c) of the Consolidated Farm and Rural Devel6 opment Act (7 U.S.C. 1932), $150,000,000, to remain 

7 available until September 30, 2010. 

8 BIOREFINERY ASSISTANCE

9 For the cost of loan guarantees and grants, as au10 thorized by section 9003 of the Farm Security and Rural 

11 Investment Act of 2002 (7 U.S.C. 8103), $200,000,000, 

12 to remain available until September 30, 2010. 

13 RURAL ENERGY FOR AMERICA PROGRAM

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

16 Farm Security and Rural Investment Act of 2002 (7 

17 U.S.C. 8107), $50,000,000, to remain available until Sep18 tember 30, 2010: Provided, That these funds may be used 

19 by tribes, local units of government, and schools in rural 

20 areas, as defined in section 343(a) of the Consolidated 

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

22 RURAL UTILITIES SERVICE

23 RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT

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

25 loan guarantees, and grants for the rural water, waste 


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AMDT. NO. 570 

1 water, waste disposal, and solid waste management pro2 grams authorized by sections 306, 306A, 306C, 306D, 

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

4 and 381E(d)(2) of the Consolidated Farm and Rural De5 velopment Act, $1,375,000,000, to remain available until 

6 September 30, 2010. 

7 DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND

8 PROGRAM ACCOUNT

9 For an additional amount for direct loans and grants 

10 for distance learning and telemedicine services in rural 

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

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

13 2010. 

14 FOOD AND NUTRITION SERVICE

15 CHILD NUTRITION PROGRAMS

16 For additional amount for the Richard B. Russell 

17 National School Lunch Act (42 U.S.C. 1751 et. seq.), ex18 cept section 21, and the Child Nutrition Act of 1966 (42 

19 U.S.C. 1771 et. seq.), except sections 17 and 21, 

20 $100,000,000, to remain available until September 30, 

21 2010, to carry out a grant program for National School 

22 Lunch Program equipment assistance: Provided, That 

23 such funds shall be provided to States administering a 

24 school lunch program through a formula based on the 

25 ratio that the total number of lunches served in the ProVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 gram during the second preceding fiscal year bears to the 

2 total number of such lunches served in all States in such 

3 second preceding fiscal year: Provided further, That of 

4 such funds, the Secretary may approve the reserve by 

5 States of up to $20,000,000 for necessary enhancements 

6 to the State Distributing Agency’s commodity ordering 

7 and management system to achieve compatibility with the 

8 Department’s web-based supply chain management sys9 tem: Provided further, That of the funds remaining, the 

10 State shall provide competitive grants to school food au11 thorities based upon the need for equipment assistance in 

12 participating schools with priority given to schools in 

13 which not less than 50 percent of the students are eligible 

14 for free or reduced price meals under the Richard B. Rus15 sell National School Lunch Act and priority given to 

16 schools purchasing equipment for the purpose of offering 

17 more healthful foods and meals, in accordance with stand18 ards established by the Secretary. 

19 SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR

20 WOMEN, INFANTS, AND CHILDREN (WIC)

21 For an additional amount for the special supple22 mental nutrition program as authorized by section 17 of 

23 the Child Nutrition Act of 1966 (42 U.S.C. 1786), to re24 main available until September 30, 2010, $500,000,000, 

25 of which $380,000,000 shall be placed in reserve to be 


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AMDT. NO. 570 

1 allocated as the Secretary deems necessary, notwith2 standing section 17(i) of such Act, to support participa3 tion should cost or participation exceed budget estimates, 

4 and of which $120,000,000 shall be for the purposes speci5 fied in section 17(h)(10)(B)(ii): Provided, That up to one 

6 percent of the funding provided for the purposes specified 

7 in section 17(h)(10)(B)(ii) may be reserved by the Sec8 retary for Federal administrative activities in support of 

9 those purposes. 

10 COMMODITY ASSISTANCE PROGRAM

11 For an additional amount for the ‘‘Commodity As12 sistance Program’’, to remain available until September 

13 30, 2010, $150,000,000, which the Secretary shall use to 

14 purchase a variety of commodities as authorized by the 

15 Commodity Credit Corporation or under section 32 of the 

16 Act entitled ‘‘An Act to amend the Agricultural Adjust17 ment Act, and for other purposes’’, approved August 24, 

18 1935 (7 U.S.C. 612c): Provided, That the Secretary shall 

19 distribute the commodities to States for distribution in ac20 cordance with section 214 of the Emergency Food Assist21 ance Act of 1983 (Public Law 98–8; 7 U.S.C. 612c note): 

22 Provided further, That of the funds made available, the 

23 Secretary may use up to $50,000,000 for costs associated 

24 with the distribution of commodities. 


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AMDT. NO. 570 

1 GENERAL PROVISIONS—THIS TITLE 

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

3 available to the United States Department of Agriculture 

4 for broadband direct loans and loan guarantees, as author5 ized under title VI of the Rural Electrification Act of 1936 

6 (7 U.S.C. 950bb) and for grants, shall be available for 

7 broadband infrastructure in any area of the United States 

8 notwithstanding title VI of the Rural Electrification Act 

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

10 served by the projects receiving funds from such grants, 

11 loans, or loan guarantees is in a rural area without suffi12 cient access to high speed broadband service to facilitate 

13 rural economic development, as determined by the Sec14 retary: Provided further, That priority for awarding funds 

15 made available under this paragraph shall be given to 

16 projects that provide service to the highest proportion of 

17 rural residents that do not have sufficient access to 

18 broadband service: Provided further, That priority for 

19 awarding such funds shall be given to project applications 

20 that demonstrate that, if the application is approved, all 

21 project elements will be fully funded: Provided further, 

22 That priority for awarding such funds shall be given to 

23 activities that can commence promptly following approval: 

24 Provided further, That the Department shall submit a re25 port on planned spending and actual obligations describVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00011 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ing the use of these funds not later than 90 days after 

2 the date of enactment of this Act, and quarterly thereafter 

3 until all funds are obligated, to the Committees on Appro4 priations of the House of Representatives and the Senate. 

5 SEC. 102. NUTRITION FOR ECONOMIC RECOVERY. 

6 (a) MAXIMUM BENEFIT INCREASES.— 

7 (1) ECONOMIC RECOVERY 1-MONTH BEGINNING

8 STIMULUS PAYMENT.—For the first month that be9 gins not less than 25 days after the date of enact10 ment of this Act, the Secretary of Agriculture (re11 ferred to in this section as the ‘‘Secretary’’) shall in12 crease the cost of the thrifty food plan for purposes 

13 of section 8(a) of the Food and Nutrition Act of 

14 2008 (7 U.S.C. 2017(a)) by 85 percent. 

15 (2) REMAINDER OF FISCAL YEAR 2009.—Begin16 ning with the second month that begins not less 

17 than 25 days after the date of enactment of this 

18 Act, and for each subsequent month through the 

19 month ending September 30, 2009, the Secretary 

20 shall increase the cost of the thrifty food plan for 

21 purposes of section 8(a) of the Food and Nutrition 

22 Act of 2008 (7 U.S.C. 2017(a)) by 12 percent. 

23 (3) SUBSEQUENT INCREASE FOR FISCAL YEAR

24 2010.—Beginning on October 1, 2009, and for each 

25 subsequent month through the month ending SepVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00012 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 tember 30, 2010, the Secretary shall increase the 

2 cost of the thrifty food plan for purposes of section 

3 8(a) of the Food and Nutrition Act of 2008 (7 

4 U.S.C. 2017(a)) by an amount equal to 12 percent, 

5 less the percentage by which the Secretary deter6 mines the thrifty food plan would otherwise be ad7 justed on October 1, 2009, as required under section 

8 3(u) of that Act (7 U.S.C. 2012(u)), if the percent9 age is less than 12 percent. 

10 (4) SUBSEQUENT INCREASE FOR FISCAL YEAR

11 2011.—Beginning on October 1, 2010, and for each 

12 subsequent month through the month ending Sep13 tember 30, 2011, the Secretary shall increase the 

14 cost of the thrifty food plan for purposes of section 

15 8(a) of the Food and Nutrition Act of 2008 (7 

16 U.S.C. 2017(a)) by an amount equal to 12 percent, 

17 less the sum of the percentages by which the Sec18 retary determines the thrifty food plan would other19 wise be adjusted on October 1, 2009 and October 1, 

20 2010, as required under section 3(u) of that Act (7 

21 U.S.C. 2012(u)), if the sum of such percentages is 

22 less than 12 percent. 

23 (5) TERMINATION OF EFFECTIVENESS.—Effec24 tive beginning October 1, 2011, the authority proVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00013 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 vided by this subsection terminates and has no ef2 fect. 

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

4 the Secretary shall— 

5 (1) consider the benefit increases described in 

6 subsection (a) to be a mass change; 

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

8 households of the changes in benefits; 

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

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

11 to apply to any errors in the implementation of this 

12 section, without regard to the 120-day limit de13 scribed in section 16(c)(3)(A) of that Act; 

14 (4) disregard the additional amount of benefits 

15 that a household receives as a result of this section 

16 in determining the amount of overissuances under 

17 section 13 of the Food and Nutrition Act of 2008 

18 (7 U.S.C. 2022) and the hours of participation in a 

19 program under section 6(d), 20, or 26 of that Act 

20 (7 U.S.C. 2015(d), 2029, 2035); and 

21 (5) set the tolerance level for excluding small 

22 errors for the purposes of section 16(c) of the Food 

23 and Nutrition Act of 2008 (7 U.S.C. 2025(c)) at 

24 $50 for the period that the benefit increase under 

25 subsection (a) is in effect. 


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1 (c) ADMINISTRATIVE EXPENSES.— 

2 (1) IN GENERAL.—For the costs of State ad3 ministrative expenses associated with carrying out 

4 this section and administering the supplemental nu5 trition assistance program established under the 

6 Food and Nutrition Act of 2008 (7 U.S.C. 2011 et 

7 seq.) (referred to in this section as the ‘‘supple8 mental nutrition assistance program’’) during a pe9 riod of rising program caseloads, and for the ex10 penses of the Secretary under paragraph (6), the 

11 Secretary shall make available $150,000,000 for 

12 each of fiscal years 2009 and 2010, to remain avail13 able through September 30, 2010. 

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

15 than 60 days after the date of enactment of this 

16 Act, the Secretary shall make available to States 

17 amounts for fiscal year 2009 under paragraph (1). 

18 (3) ALLOCATION OF FUNDS.—Except as pro19 vided in paragraph (6), funds described in para20 graph (1) shall be made available to States that 

21 meet the requirements of paragraph (5) as grants to 

22 State agencies for each fiscal year as follows: 

23 (A) 75 percent of the amounts available 

24 for each fiscal year shall be allocated to States 

25 based on the share of each State of households 


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1 that participate in the supplemental nutrition 

2 assistance program as reported to the Depart3 ment of Agriculture for the most recent 12- 

4 month period for which data are available, ad5 justed by the Secretary (in the discretion of the 

6 Secretary) for participation in disaster pro7 grams under section 5(h) of the Food and Nu8 trition Act of 2008 (7 U.S.C. 2014(h)); and 

9 (B) 25 percent of the amounts available 

10 for each fiscal year shall be allocated to States 

11 based on the increase in the number of house12 holds that participate in the supplemental nu13 trition assistance program as reported to the 

14 Department of Agriculture over the most recent 

15 12-month period for which data are available, 

16 adjusted by the Secretary (in the discretion of 

17 the Secretary) for participation in disaster pro18 grams under section 5(h) of the Food and Nu19 trition Act of 2008 (7 U.S.C. 2014(h)). 

20 (4) REDISTRIBUTION.—The Secretary shall de21 termine an appropriate procedure for redistribution 

22 of amounts allocated to States that would otherwise 

23 be provided allocations under paragraph (3) for a 

24 fiscal year but that do not meet the requirements of 

25 paragraph (5). 


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AMDT. NO. 570 

1 (5) MAINTENANCE OF EFFORT.— 

2 (A) DEFINITION OF SPECIFIED STATE AD3 MINISTRATIVE COSTS.—In this paragraph: 

4 (i) IN GENERAL.—The term ‘‘specified 

5 State administrative costs’’ includes all 

6 State administrative costs under the sup7 plemental nutrition assistance program. 

8 (ii) EXCLUSIONS.—The term ‘‘speci9 fied State administrative costs’’ does not 

10 include— 

11 (I) the costs of employment and 

12 training programs under section 6(d), 

13 20, or 26 of the Food and Nutrition 

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

15 2035); 

16 (II) the costs of nutrition edu17 cation under section 11(f) of that Act 

18 (7 U.S.C. 2020(f)); and 

19 (III) any other costs the Sec20 retary determines should be excluded. 

21 (B) REQUIREMENT.—The Secretary shall 

22 make funds under this subsection available only 

23 to States that, as determined by the Secretary, 

24 maintain State expenditures on specified State 

25 administrative costs. 


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1 (6) MONITORING AND EVALUATION.—Of the 

2 amounts made available under paragraph (1), the 

3 Secretary may retain up to $5,000,000 for the costs 

4 incurred by the Secretary in monitoring the integrity 

5 and evaluating the effects of the payments made 

6 under this section. 

7 (d) FOOD DISTRIBUTION PROGRAM ON INDIAN RES8 ERVATIONS.—For the costs of administrative expenses as9 sociated with the food distribution program on Indian res10 ervations established under section 4(b) of the Food and 

11 Nutrition Act of 2008 (7 U.S.C. 2013(b)), the Secretary 

12 shall make available $5,000,000, to remain available until 

13 September 30, 2010. 

14 (e) CONSOLIDATED BLOCK GRANTS FOR PUERTO

15 RICO AND AMERICAN SAMOA.— 

16 (1) FISCAL YEAR 2009.— 

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

18 the Secretary shall increase by 12 percent the 

19 amount available for nutrition assistance for eli20 gible households under the consolidated block 

21 grants for the Commonwealth of Puerto Rico 

22 and American Samoa under section 19 of the 

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

24 2028). 


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1 (B) AVAILABILITY OF FUNDS.—Funds 

2 made available under subparagraph (A) shall 

3 remain available through September 30, 2010. 

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

5 the Secretary shall increase the amount available for 

6 nutrition assistance for eligible households under the 

7 consolidated block grants for the Commonwealth of 

8 Puerto Rico and American Samoa under section 19 

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

10 2028) by 12 percent, less the percentage by which 

11 the Secretary determines the consolidated block 

12 grants would otherwise be adjusted on October 1, 

13 2009, as required by section 19(a)(2)(A)(ii) of that 

14 Act (7 U.S.C. 2028(a)(2)(A)(ii)), if the percentage 

15 is less than 12 percent. 

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

17 the Secretary shall increase the amount available for 

18 nutrition assistance for eligible households under the 

19 consolidated block grants for the Commonwealth of 

20 Puerto Rico and American Samoa under section 19 

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

22 2028) by 12 percent, less the sum of the percentages 

23 by which the Secretary determines the consolidated 

24 block grants would otherwise be adjusted on October 

25 1, 2009, and October 1, 2010, as required by section 


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1 19(a)(2)(A)(ii) of that Act (7 U.S.C. 

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

3 less than 12 percent. 

4 (f) TREATMENT OF JOBLESS WORKERS.— 

5 (1) REMAINDER OF FISCAL YEAR 2009

6 THROUGH FISCAL YEAR 2011.—Beginning with the 

7 first month that begins not less than 25 days after 

8 the date of enactment of this Act and for each sub9 sequent month through September 30, 2011, eligi10 bility for supplemental nutrition assistance program 

11 benefits shall not be limited under section 6(o)(2) of 

12 the Food and Nutrition Act of 2008 unless an indi13 vidual does not comply with the requirements of a 

14 program offered by the State agency that meets the 

15 standards of subparagraphs (B) or (C) of that para16 graph. 

17 (2) FISCAL YEAR 2012 AND THEREAFTER.—Be18 ginning on October 1, 2011, for the purposes of sec19 tion 6(o) of the Food and Nutrition Act of 2008 (7 

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

21 period during which an individual received benefits 

22 under the supplemental nutrition assistance program 

23 prior to October 1, 2011. 

24 (g) FUNDING.—There are appropriated to the Sec25 retary out of funds of the Treasury not otherwise approVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00020 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 priated such sums as are necessary to carry out this sec2 tion. 

3 SEC. 103. AGRICULTURAL DISASTER ASSISTANCE

4 TRANSITION. (a) FEDERAL CROP INSURANCE ACT.—Sec5 tion 531(g) of the Federal Crop Insurance Act (7 U.S.C. 

6 1531(g)) is amended by adding at the end the following: 

7 ‘‘(7) 2008 TRANSITION ASSISTANCE.— 

8 ‘‘(A) IN GENERAL.—Eligible producers on 

9 a farm described in subparagraph (A) of para10 graph (4) that failed to timely pay the appro11 priate fee described in that subparagraph shall 

12 be eligible for assistance under this section in 

13 accordance with subparagraph (B) if the eligi14 ble producers on the farm— 

15 ‘‘(i) pay the appropriate fee described 

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

17 after the date of enactment of this para18 graph; and 

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

20 commodity of the eligible producers on the 

21 farm, excluding grazing land, agree to ob22 tain a policy or plan of insurance under 

23 subtitle A (excluding a crop insurance pilot 

24 program under that subtitle) for the next 

25 insurance year for which crop insurance is 


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1 available to the eligible producers on the 

2 farm at a level of coverage equal to 70 per3 cent or more of the recorded or appraised 

4 average yield indemnified at 100 percent of 

5 the expected market price, or an equivalent 

6 coverage; and 

7 ‘‘(II) in the case of each noninsurable 

8 commodity of the eligible producers on the 

9 farm, agree to file the required paperwork, 

10 and pay the administrative fee by the ap11 plicable State filing deadline, for the non12 insured crop assistance program for the 

13 2009 crop year. 

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

15 producers on a farm that meet the require16 ments of subparagraph (A) shall be eligible to 

17 receive assistance under this section as if the el18 igible producers on the farm— 

19 ‘‘(i) in the case of each insurable com20 modity of the eligible producers on the 

21 farm, had obtained a policy or plan of in22 surance for the 2008 crop year at a level 

23 of coverage not to exceed 70 percent or 

24 more of the recorded or appraised average 

25 yield indemnified at 100 percent of the exVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00022 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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AMDT. NO. 570 

1 pected market price, or an equivalent cov2 erage; and 

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

4 commodity of the eligible producers on the 

5 farm, had filed the required paperwork, 

6 and paid the administrative fee by the ap7 plicable State filing deadline, for the non8 insured crop assistance program for the 

9 2008 crop year, except that in determining 

10 yield under that program, the Secretary 

11 shall use a percentage that is 70 percent. 

12 ‘‘(C) EQUITABLE RELIEF.—Except as pro13 vided in subparagraph (D), eligible producers 

14 on a farm that met the requirements of para15 graph (1) before the deadline described in para16 graph (4)(A) and received, or are eligible to re17 ceive, a disaster assistance payment under this 

18 section for a production loss during the 2008 

19 crop year shall be eligible to receive an addi20 tional amount equal to the greater of— 

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

22 calculated under subparagraph (B) if the 

23 eligible producers on the farm had paid the 

24 appropriate fee under that subparagraph; 

25 or 


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AMDT. NO. 570 

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 

9 ‘120 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 

15 of the assistance received by a similarly situated 

16 producer that had purchased the same or high17 er level of crop insurance prior to the date of 

18 enactment of this paragraph. 

19 ‘‘(E) AUTHORITY OF THE SECRETARY.— 

20 The Secretary may provide such additional as21 sistance as the Secretary considers appropriate 

22 to provide equitable treatment for eligible pro23 ducers on a farm that suffered production 

24 losses in the 2008 crop year that result in 


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AMDT. NO. 570 

1 multiyear production losses, as determined by 

2 the Secretary. 

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

4 any other provision of this section, the Sec5 retary may provide assistance under this section 

6 to eligible producers on a farm that— 

7 ‘‘(i) suffered a production loss due to 

8 a natural cause during the 2008 crop year; 

9 and 

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

11 ‘‘(I)(aa) except as provided in 

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

13 plan of insurance under subtitle A; or 

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

15 agreement because 1 or more farming 

16 practices, which the Secretary has de17 termined are good farming practices, 

18 of the eligible producers on the farm 

19 differ significantly from the farming 

20 practices used by producers of the 

21 same crop in other regions of the 

22 United States; and 

23 ‘‘(II) are not eligible for the non24 insured crop disaster assistance pro25 gram established by section 196 of the 


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AMDT. NO. 570 

1 Federal Agriculture Improvement and 

2 Reform Act of 1996 (7 U.S.C. 

3 7333).’’. 

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

5 Trade Act of 1974 (19 U.S.C. 2497(g)) is amended by 

6 adding at the end the following: 

7 ‘‘(7) 2008 TRANSITION ASSISTANCE.— 

8 ‘‘(A) IN GENERAL.—Eligible producers on 

9 a farm described in subparagraph (A) of para10 graph (4) that failed to timely pay the appro11 priate fee described in that subparagraph shall 

12 be eligible for assistance under this section in 

13 accordance with subparagraph (B) if the eligi14 ble producers on the farm— 

15 ‘‘(i) pay the appropriate fee described 

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

17 after the date of enactment of this para18 graph; and 

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

20 commodity of the eligible producers on the 

21 farm, excluding grazing land, agree to ob22 tain a policy or plan of insurance under 

23 the Federal Crop Insurance Act (7 U.S.C. 

24 1501 et seq.) (excluding a crop insurance 

25 pilot program under that Act) for the next 


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AMDT. NO. 570 

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 require17 ments of subparagraph (A) shall be eligible to 

18 receive assistance under this section as if the el19 igible producers on the farm— 

20 ‘‘(i) in the case of each insurable com21 modity of the eligible producers on the 

22 farm, had obtained a policy or plan of in23 surance for the 2008 crop year at a level 

24 of coverage not to exceed 70 percent or 

25 more of the recorded or appraised average 


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AMDT. NO. 570 

1 yield indemnified at 100 percent of the ex2 pected market price, or an equivalent cov3 erage; and 

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

5 commodity of the eligible producers on the 

6 farm, had filed the required paperwork, 

7 and paid the administrative fee by the ap8 plicable State filing deadline, for the non9 insured crop assistance program for the 

10 2008 crop year, except that in determining 

11 yield under that program, the Secretary 

12 shall use a percentage that is 70 percent. 

13 ‘‘(C) EQUITABLE RELIEF.—Except as pro14 vided in subparagraph (D), eligible producers 

15 on a farm that met the requirements of para16 graph (1) before the deadline described in para17 graph (4)(A) and received, or are eligible to re18 ceive, a disaster assistance payment under this 

19 section for a production loss during the 2008 

20 crop year shall be eligible to receive an addi21 tional amount equal to the greater of— 

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

23 calculated under subparagraph (B) if the 

24 eligible producers on the farm had paid the 


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AMDT. NO. 570 

1 appropriate fee under that subparagraph; 

2 or 

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

4 calculated under subparagraph (A) of sub5 section (b)(3) if— 

6 ‘‘(I) in clause (i) of that subpara7 graph, ‘120 percent’ is substituted for 

8 ‘115 percent’; and 

9 ‘‘(II) in clause (ii) of that sub10 paragraph, ‘125’ is substituted for 

11 ‘120 percent’. 

12 ‘‘(D) LIMITATION.—For amounts made 

13 available under this paragraph, the Secretary 

14 may make such adjustments as are necessary to 

15 ensure that no producer receives a payment 

16 under this paragraph for an amount in excess 

17 of the assistance received by a similarly situated 

18 producer that had purchased the same or high19 er level of crop insurance prior to the date of 

20 enactment of this paragraph. 

21 ‘‘(E) AUTHORITY OF THE SECRETARY.— 

22 The Secretary may provide such additional as23 sistance as the Secretary considers appropriate 

24 to provide equitable treatment for eligible pro25 ducers on a farm that suffered production 


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AMDT. NO. 570 

1 losses in the 2008 crop year that result in 

2 multiyear production losses, as determined by 

3 the Secretary. 

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

5 any other provision of this section, the Sec6 retary may provide assistance under this section 

7 to eligible producers on a farm that— 

8 ‘‘(i) suffered a production loss due to 

9 a natural cause during the 2008 crop year; 

10 and 

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

12 ‘‘(I)(aa) except as provided in 

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

14 plan of insurance under subtitle A; or 

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

16 agreement because 1 or more farming 

17 practices, which the Secretary has de18 termined are good farming practices, 

19 of the eligible producers on the farm 

20 differ significantly from the farming 

21 practices used by producers of the 

22 same crop in other regions of the 

23 United States; and 

24 ‘‘(II) are not eligible for the non25 insured crop disaster assistance proVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00030 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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AMDT. NO. 570 

1 gram established by section 196 of the 

2 Federal Agriculture Improvement and 

3 Reform Act of 1996 (7 U.S.C. 

4 7333).’’. 

5 (c) EMERGENCY LOANS.— 

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

7 direct emergency loans under section 321 of the 

8 Consolidated Farm and Rural Development Act (7 

9 U.S.C. 1961), $200,000,000. 

10 (2) DIRECT EMERGENCY LOANS.—For the cost 

11 of direct emergency loans, including the cost of 

12 modifying loans, as defined in section 502 of the 

13 Congressional Budget Act of 1974 (2 U.S.C. 661a), 

14 $28,440,000, to remain available until September 

15 30, 2010. 

16 (d) 2008 AQUACULTURE ASSISTANCE.— 

17 (1) DEFINITIONS.—In this subsection: 

18 (A) ELIGIBLE AQUACULTURE PRO19 DUCER.—The term ‘‘eligible aquaculture pro20 ducer’’ means an aquaculture producer that 

21 during the 2008 calendar year, as determined 

22 by the Secretary— 

23 (i) produced an aquaculture species 

24 for which feed costs represented a substanVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00031 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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AMDT. NO. 570 

1 tial percentage of the input costs of the 

2 aquaculture operation; and 

3 (ii) experienced a substantial price in4 crease of feed costs above the previous 5- 

5 year average. 

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

7 means the Secretary of Agriculture. 

8 (2) GRANT PROGRAM.— 

9 (A) IN GENERAL.—Of the funds of the 

10 Commodity Credit Corporation, the Secretary 

11 shall use not more than $50,000,000, to remain 

12 available until September 30, 2010, to carry out 

13 a program of grants to States to assist eligible 

14 aquaculture producers for losses associated with 

15 high feed input costs during the 2008 calendar 

16 year. 

17 (B) NOTIFICATION.—Not later than 60 

18 days after the date of enactment of this Act, 

19 the Secretary shall notify the State department 

20 of agriculture (or similar entity) in each State 

21 of the availability of funds to assist eligible 

22 aquaculture producers, including such terms as 

23 determined by the Secretary to be necessary for 

24 the equitable treatment of eligible aquaculture 

25 producers. 


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AMDT. NO. 570 

1 (C) PROVISION OF GRANTS.— 

2 (i) IN GENERAL.—The Secretary shall 

3 make grants to States under this sub4 section on a pro rata basis based on the 

5 amount of aquaculture feed used in each 

6 State during the 2007 calendar year, as 

7 determined by the Secretary. 

8 (ii) TIMING.—Not later than 120 days 

9 after the date of enactment of this Act, the 

10 Secretary shall make grants to States to 

11 provide assistance under this subsection. 

12 (D) REQUIREMENTS.—The Secretary shall 

13 make grants under this subsection only to 

14 States that demonstrate to the satisfaction of 

15 the Secretary that the State will— 

16 (i) use grant funds to assist eligible 

17 aquaculture producers; 

18 (ii) provide assistance to eligible aqua19 culture producers not later than 60 days 

20 after the date on which the State receives 

21 grant funds; and 

22 (iii) not later than 30 days after the 

23 date on which the State provides assistance 

24 to eligible aquaculture producers, submit to 

25 the Secretary a report that describes— 


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AMDT. NO. 570 

1 (I) the manner in which the 

2 State provided assistance; 

3 (II) the amounts of assistance 

4 provided per species of aquaculture; 

5 and 

6 (III) the process by which the 

7 State determined the levels of assist8 ance to eligible aquaculture producers. 

9 (3) REDUCTION IN PAYMENTS.—An eligible 

10 aquaculture producer that receives assistance under 

11 this subsection shall not be eligible to receive any 

12 other assistance under the supplemental agricultural 

13 disaster assistance program established under sec14 tion 531 of the Federal Crop Insurance Act (7 

15 U.S.C. 1531) and section 901 of the Trade Act of 

16 1974 (19 U.S.C. 2497) for any losses in 2008 relat17 ing to the same species of aquaculture. 

18 (4) REPORT TO CONGRESS.—Not later than 

19 180 days after the date of enactment of this Act, the 

20 Secretary shall submit to the appropriate committees 

21 of Congress a report that— 

22 (A) describes in detail the manner in which 

23 this subsection has been carried out; and 

24 (B) includes the information reported to 

25 the Secretary under paragraph (2)(D)(iii). 


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AMDT. NO. 570 

1 (e) ADMINISTRATION.—There is hereby appropriated 

2 $54,000,000 to carry out this section. 

3 SEC. 104. (a) Hereafter, in this section, the term 

4 ‘‘nonambulatory disabled cattle’’ means cattle, other than 

5 cattle that are less than 5 months old or weigh less than 

6 500 pounds, subject to inspection under section 3(b) of 

7 the Federal Meat Inspection Act (21 U.S.C. 603(b)) that 

8 cannot rise from a recumbent position or walk, including 

9 cattle with a broken appendage, severed tendon or liga10 ment, nerve paralysis, fractured vertebral column, or a 

11 metabolic condition. 

12 (b) Hereafter, none of the funds made available 

13 under this or any other Act may be used to pay the sala14 ries or expenses of any personnel of the Food Safety and 

15 Inspection Service to pass through inspection any non16 ambulatory disabled cattle for use as human food, regard17 less of the reason for the nonambulatory status of the cat18 tle or the time at which the cattle became nonambulatory. 

19 SEC. 105. STATE AND LOCAL GOVERNMENTS. Sec20 tion 1001(f)(6)(A) of the Food Security Act of 1985 (7 

21 U.S.C. 1308(f)(6)(A)) is amended by inserting ‘‘(other 

22 than the conservation reserve program established under 

23 subchapter B of chapter 1 of subtitle D of title XII of 

24 this Act)’’ before the period at the end. 


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AMDT. NO. 570 

1 SEC. 106. Except for title I of the Food, Conserva2 tion, and Energy Act of 2008 (Public Law 110–246), 

3 Commodity Credit Corporation funds provided in that Act 

4 shall be available for administrative expenses, including 

5 technical assistance, without regard to the limitation in 

6 15 U.S.C. 714i. 

7 TITLE II—COMMERCE, JUSTICE, SCIENCE, AND 

8 RELATED AGENCIES 

9 DEPARTMENT OF COMMERCE 

10 BUREAU OF INDUSTRY AND SECURITY

11 OPERATIONS AND ADMINISTRATION

12 For an additional amount for ‘‘Operations and Ad13 ministration’’, $20,000,000, to remain available until Sep14 tember 30, 2010. 

15 ECONOMIC DEVELOPMENT ADMINISTRATION

16 ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

17 For an additional amount for ‘‘Economic Develop18 ment Assistance Programs’’, $150,000,000, to remain 

19 available until September 30, 2010: Provided, That 

20 $50,000,000 shall be for economic adjustment assistance 

21 as authorized by section 209 of the Public Works and Eco22 nomic Development Act of 1965, as amended (42 U.S.C. 

23 3149): Provided further, That in allocating the funds pro24 vided in the previous proviso, the Secretary of Commerce 

25 shall give priority consideration to areas of the Nation 


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AMDT. NO. 570 

1 that have experienced sudden and severe economic disloca2 tion and job loss due to corporate restructuring. 

3 BUREAU OF THE CENSUS

4 PERIODIC CENSUSES AND PROGRAMS

5 For an additional amount for ‘‘Periodic Censuses and 

6 Programs’’, $1,000,000,000, to remain available until 

7 September 30, 2010. 

8 NATIONAL TELECOMMUNICATIONS AND INFORMATION

9 ADMINISTRATION

10 BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM

11 For an amount for ‘‘Broadband Technology Opportu12 nities Program’’, $7,000,000,000, to remain available 

13 until September 30, 2010: Provided, That of the funds 

14 provided under this heading, $6,650,000,000 shall be ex15 pended pursuant to section 201 of this Act, of which: not 

16 less than $200,000,000 shall be available for competitive 

17 grants for expanding public computer center capacity, in18 cluding at community colleges and public libraries; not less 

19 than $250,000,000 shall be available for competitive 

20 grants for innovative programs to encourage sustainable 

21 adoption of broadband service; and $10,000,000 shall be 

22 transferred to ‘‘Department of Commerce, Office of In23 spector General’’ for the purposes of audits and oversight 

24 of funds provided under this heading and such funds shall 

25 remain available until expended: Provided further, That 50 


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AMDT. NO. 570 

1 percent of the funds provided in the previous proviso shall 

2 be used to support projects in rural communities, which 

3 in part may be transferred to the Department of Agri4 culture for administration through the Rural Utilities 

5 Service if deemed necessary and appropriate by the Sec6 retary of Commerce, in consultation with the Secretary of 

7 Agriculture, and only if the Committees on Appropriations 

8 of the House and the Senate are notified not less than 

9 15 days in advance of the transfer of such funds: Provided 

10 further, That of the funds provided under this heading, 

11 up to $350,000,000 may be expended pursuant to Public 

12 Law 110–385 (47 U.S.C. 1301 note) and for the purposes 

13 of developing and maintaining a broadband inventory map 

14 pursuant to section 201 of this Act: Provided further, That 

15 of the funds provided under this heading, amounts deemed 

16 necessary and appropriate by the Secretary of Commerce, 

17 in consultation with the Federal Communications Com18 mission (FCC), may be transferred to the FCC for the 

19 purposes of developing a national broadband plan or for 

20 carrying out any other FCC responsibilities pursuant to 

21 section 201 of this Act, and only if the Committees on 

22 Appropriations of the House and the Senate are notified 

23 not less than 15 days in advance of the transfer of such 

24 funds: Provided further, That not more than 3 percent of 

25 funds provided under this heading may be used for adminVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00038 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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AMDT. NO. 570 

1 istrative costs, and this limitation shall apply to funds 

2 which may be transferred to the Department of Agri3 culture and the FCC. 

4 DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM

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

6 Program’’, $650,000,000, for additional coupons and re7 lated activities under the program implemented under sec8 tion 3005 of the Digital Television Transition and Public 

9 Safety Act of 2005, to remain available until September 

10 30, 2010: Provided, That of the amounts provided under 

11 this heading, $90,000,000 may be for education and out12 reach, including grants to organizations for programs to 

13 educate vulnerable populations, including senior citizens, 

14 minority communities, people with disabilities, low-income 

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

16 transition and to provide one-on-one assistance to vulner17 able populations, including help with converter box instal18 lation: Provided further, That the amounts provided in the 

19 previous proviso may be transferred to the Federal Com20 munications Commission (Commission) if deemed nec21 essary and appropriate by the Secretary of Commerce in 

22 consultation with the Commission, and only if the Com23 mittees on Appropriations of the House and the Senate 

24 are notified not less than 5 days in advance of transfer 

25 of such funds: Provided further, That $2,000,000 of funds 


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AMDT. NO. 570 

1 provided under this heading shall be transferred to ‘‘De2 partment of Commerce, Office of Inspector General’’ for 

3 audits and oversight of funds provided under this heading. 

4 NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

5 SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES

6 For an additional amount for ‘‘Scientific and Tech7 nical Research and Services’’, $168,000,000, to remain 

8 available until September 30, 2010. 

9 CONSTRUCTION OF RESEARCH FACILITIES

10 For an additional amount for ‘‘Construction of Re11 search Facilities’’, $307,000,000, to remain available until 

12 September 30, 2010. 

13 NATIONAL OCEANIC AND ATMOSPHERIC

14 ADMINISTRATION

15 OPERATIONS, RESEARCH, AND FACILITIES

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

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

18 September 30, 2010. 

19 PROCUREMENT, ACQUISITION AND CONSTRUCTION

20 For an additional amount for ‘‘Procurement, Acquisi21 tion and Construction’’, $645,000,000, to remain available 

22 until September 30, 2010. 


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AMDT. NO. 570 

1 OFFICE OF INSPECTOR GENERAL

2 For an additional amount for ‘‘Office of Inspector 

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

4 30, 2012. 

5 DEPARTMENT OF JUSTICE 

6 GENERAL ADMINISTRATION

7 TACTICAL LAW ENFORCEMENT WIRELESS

8 COMMUNICATIONS

9 For an additional amount for ‘‘Tactical Law Enforce10 ment Wireless Communications’’, $100,000,000 for the 

11 costs of developing and implementing a nationwide Inte12 grated Wireless network supporting Federal law enforce13 ment, to remain available until September 30, 2010. 

14 DETENTION TRUSTEE

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

16 $100,000,000, to remain available until September 30, 

17 2010. 

18 OFFICE OF INSPECTOR GENERAL

19 For an additional amount for ‘‘Office of Inspector 

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

21 30, 2011. 


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AMDT. NO. 570 

1 UNITED STATES MARSHALS SERVICE

2 SALARIES AND EXPENSES

3 For an additional amount for ‘‘Salaries and Ex4 penses’’, $50,000,000, to remain available until September 

5 30, 2010. 

6 CONSTRUCTION

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

8 $100,000,000, to remain available until September 30, 

9 2010. 

10 FEDERAL BUREAU OF INVESTIGATION

11 SALARIES AND EXPENSES

12 For an additional amount for ‘‘Salaries and Ex13 penses’’, $75,000,000, to remain available until September 

14 30, 2010. 

15 CONSTRUCTION

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

17 $300,000,000, to remain available until September 30, 

18 2010. 

19 FEDERAL PRISON SYSTEM

20 BUILDINGS AND FACILITIES

21 For an additional amount for ‘‘Federal Prison Sys22 tem, Buildings and Facilities’’, $800,000,000, to remain 

23 available until September 30, 2010. 


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AMDT. NO. 570 

1 STATE AND LOCAL LAW ENFORCEMENT ACTIVITIES

2 OFFICE ON VIOLENCE AGAINST WOMEN

3 VIOLENCE AGAINST WOMEN PREVENTION AND

4 PROSECUTION PROGRAMS

5 For an additional amount for ‘‘Violence Against 

6 Women Prevention and Prosecution Programs’’, 

7 $300,000,000 for grants to combat violence against 

8 women, as authorized by part T of the Omnibus Crime 

9 Control and Safe Streets Act of 1968 (42 U.S.C. 3711 

10 et seq.): Provided, That, $50,000,000 shall be transitional 

11 housing assistance grants for victims of domestic violence, 

12 stalking or sexual assault as authorized by section 40299 

13 of the Violent Crime Control and Law Enforcement Act 

14 of 1994 (Public Law 103–322). 

15 OFFICE OF JUSTICE PROGRAMS

16 STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

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

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

19 Byrne Memorial Justice Assistance Grant program as au20 thorized by subpart 1 of part E of title I of the Omnibus 

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

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

23 Puerto Rico under section 505(g), of the 1968 Act, shall 

24 not apply for purposes of this Act), to remain available 

25 until September 30, 2010. 


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AMDT. NO. 570 

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

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

3 grants to improve the functioning of the criminal justice 

4 system, to assist victims of crime (other than compensa5 tion), and youth mentoring grants, to remain available 

6 until September 30, 2010. 

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

8 Enforcement Assistance’’, $90,000,000, to remain avail9 able until September 30, 2010, for competitive grants to 

10 provide assistance and equipment to local law enforcement 

11 along the Southern border and in High-Intensity Drug 

12 Trafficking Areas to combat criminal narcotics activity 

13 stemming from the Southern border, of which 

14 $10,000,000 shall be transferred to ‘‘Bureau of Alcohol, 

15 Tobacco, Firearms and Explosives, Salaries and Ex16 penses’’ for the ATF Project Gunrunner. 

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

18 Enforcement Assistance’’, $300,000,000, to remain avail19 able until September 30, 2010, for assistance to Indian 

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

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

22 (1) $250,000,000 shall be available for grants 

23 under section 20109 of subtitle A of title II of the 

24 Violent Crime Control and Law Enforcement Act of 

25 1994 (Public Law 103–322); 


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AMDT. NO. 570 

1 (2) $25,000,000 shall be available for the Trib2 al Courts Initiative; and 

3 (3) $25,000,000 shall be available for tribal al4 cohol and substance abuse drug reduction assistance 

5 grants. 

6 For an additional amount for ‘‘State and Local Law En7 forcement Assistance’’, $100,000,000, to remain available 

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

9 for Victims of Crime in accordance with section 

10 1402(d)(4) of the Victims of Crime Act of 1984 (Public 

11 Law 98–473). 

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

13 Enforcement Assistance’’, $150,000,000, to remain avail14 able until September 30, 2010, for assistance to law en15 forcement in rural areas, to prevent and combat crime, 

16 especially drug-related crime. 

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

18 Enforcement Assistance’’, $50,000,000, to remain avail19 able until September 30, 2010, for Internet Crimes 

20 Against Children (ICAC) initiatives. 

21 COMMUNITY ORIENTED POLICING SERVICES

22 For an additional amount for ‘‘Community Oriented 

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

24 I of the 1968 Omnibus Crime Control and Safe Streets 

25 Act (42 U.S.C. 3796dd) for hiring and rehiring of addiVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00045 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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AMDT. NO. 570 

1 tional career law enforcement officers under part Q of 

2 such title, and civilian public safety personnel, notwith3 standing subsection (i) of such section and notwith4 standing 42 U.S.C. 3796dd–3(c), $1,000,000,000, to re5 main available until September 30, 2010. 

6 SALARIES AND EXPENSES

7 For an additional amount, not elsewhere specified in 

8 this title, for management and administration and over9 sight of programs within the Office on Violence Against 

10 Women, the Office of Justice Programs, and the Commu11 nity Oriented Policing Services Office, $10,000,000, to re12 main available until September 30, 2010. 

13 SCIENCE 

14 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

15 SCIENCE

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

17 $450,000,000, to remain available until September 30, 

18 2010. 

19 AERONAUTICS

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

21 $200,000,000, to remain available until September 30, 

22 2010. 


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AMDT. NO. 570 

1 EXPLORATION

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

3 $450,000,000, to remain available until September 30, 

4 2010. 

5 CROSS AGENCY SUPPORT

6 For an additional amount for ‘‘Cross Agency Sup7 port’’, $200,000,000, to remain available until September 

8 30, 2010. 

9 OFFICE OF INSPECTOR GENERAL

10 For an additional amount for ‘‘Office of Inspector 

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

12 30, 2011. 

13 NATIONAL SCIENCE FOUNDATION

14 RESEARCH AND RELATED ACTIVITIES

15 For an additional amount for ‘‘Research and Related 

16 Activities’’, $1,000,000,000, to remain available until Sep17 tember 30, 2010. 

18 MAJOR RESEARCH EQUIPMENT AND FACILITIES

19 CONSTRUCTION

20 For an additional amount for ‘‘Major Research 

21 Equipment and Facilities Construction’’, $150,000,000, 

22 to remain available until September 30, 2010. 


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AMDT. NO. 570 

1 EDUCATION AND HUMAN RESOURCES

2 For an additional amount for ‘‘Education and 

3 Human Resources’’, $50,000,000, to remain available 

4 until September 30, 2010. 

5 OFFICE OF INSPECTOR GENERAL

6 For an additional amount for ‘‘Office of Inspector 

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

8 30, 2011. 

9 GENERAL PROVISIONS—THIS TITLE 

10 SEC. 201. The Assistant Secretary of Commerce for 

11 Communications and Information (Assistant Secretary), 

12 in consultation with the Federal Communications Com13 mission (Commission) (and, with respect to rural areas, 

14 the Secretary of Agriculture), shall establish a national 

15 broadband service development and expansion program in 

16 conjunction with the technology opportunities program, 

17 which shall be referred to the Broadband Technology Op18 portunities Program. The Assistant Secretary shall ensure 

19 that the program complements and enhances and does not 

20 conflict with other Federal broadband initiatives and pro21 grams. 

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

23 (A) provide access to broadband service to 

24 citizens residing in unserved areas of the 

25 United States; 


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AMDT. NO. 570 

1 (B) provide improved access to broadband 

2 service to citizens residing in underserved areas 

3 of the United States; 

4 (C) provide broadband education, aware5 ness, training, access, equipment, and support 

6 to— 

7 (i) schools, libraries, medical and 

8 healthcare providers, community colleges 

9 and other institutions of higher education, 

10 and other community support organiza11 tions and entities to facilitate greater use 

12 of broadband service by or through these 

13 organizations; 

14 (ii) organizations and agencies that 

15 provide outreach, access, equipment, and 

16 support services to facilitate greater use of 

17 broadband service by low-income, unem18 ployed, aged, and otherwise vulnerable pop19 ulations; and 

20 (iii) job-creating strategic facilities lo21 cated within a State-designated economic 

22 zone, Economic Development District des23 ignated by the Department of Commerce, 

24 Renewal Community or Empowerment 

25 Zone designated by the Department of 


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1 Housing and Urban Development, or En2 terprise Community designated by the De3 partment of Agriculture. 

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

5 broadband service by public safety agencies; 

6 and 

7 (E) stimulate the demand for broadband, 

8 economic growth, and job creation. 

9 (2) The Assistant Secretary may consult with 

10 the chief executive officer of any State with respect 

11 to— 

12 (A) the identification of areas described in 

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

14 and 

15 (B) the allocation of grant funds within 

16 that State for projects in or affecting the State. 

17 (3) The Assistant Secretary shall— 

18 (A) establish and implement the grant pro19 gram as expeditiously as practicable; 

20 (B) ensure that all awards are made before 

21 the end of fiscal year 2010; 

22 (C) seek such assurances as may be nec23 essary or appropriate from grantees under the 

24 program that they will substantially complete 

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1 ance with project timelines, not to exceed 2 

2 years following an award; and 

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

4 the Committees on Appropriations of the House 

5 and the Senate, the Committee on Energy and 

6 Commerce of the House, and the Committee on 

7 Commerce, Science, and Transportation of the 

8 Senate, every 90 days. 

9 (4) To be eligible for a grant under the pro10 gram an applicant shall— 

11 (A) be a State or political subdivision 

12 thereof, a nonprofit foundation, corporation, in13 stitution or association, Indian tribe, Native 

14 Hawaiian organization, or other non-govern15 mental entity in partnership with a State or po16 litical subdivision thereof, Indian tribe, or Na17 tive Hawaiian organization if the Assistant Sec18 retary determines the partnership consistent 

19 with the purposes this section; 

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

21 such form, and containing such information as 

22 the Assistant Secretary may require; 

23 (C) provide a detailed explanation of how 

24 any amount received under the program will be 

25 used to carry out the purposes of this section 


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1 in an efficient and expeditious manner, includ2 ing a demonstration that the project would not 

3 have been implemented during the grant period 

4 without Federal grant assistance; 

5 (D) demonstrate, to the satisfaction of the 

6 Assistant Secretary, that it is capable of car7 rying out the project or function to which the 

8 application relates in a competent manner in 

9 compliance with all applicable Federal, State, 

10 and local laws; 

11 (E) demonstrate, to the satisfaction of the 

12 Assistant Secretary, that it will appropriate (if 

13 the applicant is a State or local government 

14 agency) or otherwise unconditionally obligate, 

15 from non-Federal sources, funds required to 

16 meet the requirements of paragraph (5); 

17 (F) disclose to the Assistant Secretary the 

18 source and amount of other Federal or State 

19 funding sources from which the applicant re20 ceives, or has applied for, funding for activities 

21 or projects to which the application relates; and 

22 (G) provide such assurances and proce23 dures as the Assistant Secretary may require to 

24 ensure that grant funds are used and accounted 

25 for in an appropriate manner. 


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AMDT. NO. 570 

1 (5) The Federal share of any project may not 

2 exceed 80 percent, except that the Assistant Sec3 retary may increase the Federal share of a project 

4 above 80 percent if— 

5 (A) the applicant petitions the Assistant 

6 Secretary for a waiver; and 

7 (B) the Assistant Secretary determines 

8 that the petition demonstrates financial need. 

9 (6) The Assistant Secretary may make competi10 tive grants under the program to— 

11 (A) acquire equipment, instrumentation, 

12 networking capability, hardware and software, 

13 digital network technology, and infrastructure 

14 for broadband services; 

15 (B) construct and deploy broadband serv16 ice related infrastructure; 

17 (C) ensure access to broadband service by 

18 community anchor institutions; 

19 (D) facilitate access to broadband service 

20 by low-income, unemployed, aged, and otherwise 

21 vulnerable populations in order to provide edu22 cational and employment opportunities to mem23 bers of such populations; 


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AMDT. NO. 570 

1 (E) construct and deploy broadband facili2 ties that improve public safety broadband com3 munications services; and 

4 (F) undertake such other projects and ac5 tivities as the Assistant Secretary finds to be 

6 consistent with the purposes for which the pro7 gram is established. 

8 (7) The Assistant Secretary— 

9 (A) shall require any entity receiving a 

10 grant pursuant to this section to report quar11 terly, in a format specified by the Assistant 

12 Secretary, on such entity’s use of the assistance 

13 and progress fulfilling the objectives for which 

14 such funds were granted, and the Assistant 

15 Secretary shall make these reports available to 

16 the public; 

17 (B) may establish additional reporting and 

18 information requirements for any recipient of 

19 any assistance made available pursuant to this 

20 section; 

21 (C) shall establish appropriate mechanisms 

22 to ensure appropriate use and compliance with 

23 all terms of any use of funds made available 

24 pursuant to this section; 


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AMDT. NO. 570 

1 (D) may, in addition to other authority 

2 under applicable law, deobligate awards to 

3 grantees that demonstrate an insufficient level 

4 of performance, or wasteful or fraudulent 

5 spending, as defined in advance by the Assist6 ant Secretary, and award these funds competi7 tively to new or existing applicants consistent 

8 with this section; and 

9 (E) shall create and maintain a fully 

10 searchable database, accessible on the Internet 

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

12 the name of each entity receiving funds made 

13 available pursuant to this section, the purpose 

14 for which such entity is receiving such funds, 

15 each quarterly report submitted by the entity 

16 pursuant to this section, and such other infor17 mation sufficient to allow the public to under18 stand and monitor grants awarded under the 

19 program. 

20 (8) Concurrent with the issuance of the Request 

21 for Proposal for grant applications pursuant to this 

22 section, the Assistant Secretary shall, in coordina23 tion with the Federal Communications Commission, 

24 publish the non-discrimination and network interVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00055 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 connection obligations that shall be contractual con2 ditions of grants awarded under this section. 

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

4 of this Act, the Commission shall complete a rule5 making to develop a national broadband plan. In de6 veloping the plan, the Commission shall— 

7 (A) consider the most effective and effi8 cient national strategy for ensuring that all 

9 Americans have access to, and take advantage 

10 of, advanced broadband services; 

11 (B) have access to data provided to other 

12 Government agencies under the Broadband 

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

14 (C) evaluate the status of deployments of 

15 broadband service, including the progress of 

16 projects supported by the grants made pursuant 

17 to this section; and 

18 (D) develop recommendations for achieving 

19 the goal of nationally available broadband serv20 ice for the United States and for promoting 

21 broadband adoption nationwide. 

22 (10) The Assistant Secretary shall develop and 

23 maintain a comprehensive nationwide inventory map 

24 of existing broadband service capability and avail25 ability in the United States that entities and depicts 


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AMDT. NO. 570 

1 the geographic extent to which broadband service ca2 pability is deployed and available from a commercial 

3 provider or public provider throughout each State: 

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

5 of the enactment of the Act, the Assistant Secretary 

6 shall make the broadband inventory map developed 

7 and maintained pursuant to this section accessible to 

8 the public. 

9 SEC. 202. The Assistant Secretary of Commerce for 

10 Communications and Information may reissue any coupon 

11 issued under section 3005(a) of the Digital Television 

12 Transition and Public Safety Act of 2005 that has expired 

13 before use, and shall cancel any unredeemed coupon re14 ported as lost and may issue a replacement coupon for 

15 the lost coupon. 

16 TITLE III—DEPARTMENT OF DEFENSE 

17 OPERATION AND MAINTENANCE 

18 OPERATION AND MAINTENANCE, ARMY

19 For an additional amount for ‘‘Operation and Main20 tenance, Army’’, $1,169,291,000, to remain available for 

21 obligation until September 30, 2010. 

22 OPERATION AND MAINTENANCE, NAVY

23 For an additional amount for ‘‘Operation and Main24 tenance, Navy’’, $571,843,000, to remain available for ob25 ligation until September 30, 2010. 


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AMDT. NO. 570 

1 OPERATION AND MAINTENANCE, MARINE CORPS

2 For an additional amount for ‘‘Operation and Main3 tenance, Marine Corps’’, $112,167,000, to remain avail4 able for obligation until September 30, 2010. 

5 OPERATION AND MAINTENANCE, AIR FORCE

6 For an additional amount for ‘‘Operation and Main7 tenance, Air Force’’, $927,113,000, to remain available 

8 for obligation until September 30, 2010. 

9 OPERATION AND MAINTENANCE, ARMY RESERVE

10 For an additional amount for ‘‘Operation and Main11 tenance, Army Reserve’’, $79,543,000, to remain available 

12 for obligation until September 30, 2010. 

13 OPERATION AND MAINTENANCE, NAVY RESERVE

14 For an additional amount for ‘‘Operation and Main15 tenance, Navy Reserve’’, $44,586,000, to remain available 

16 for obligation until September 30, 2010. 

17 OPERATION AND MAINTENANCE, MARINE CORPS

18 RESERVE

19 For an additional amount for ‘‘Operation and Main20 tenance, Marine Corps Reserve’’, $32,304,000, to remain 

21 available for obligation until September 30, 2010. 

22 OPERATION AND MAINTENANCE, AIR FORCE RESERVE

23 For an additional amount for ‘‘Operation and Main24 tenance, Air Force Reserve’’, $10,674,000, to remain 

25 available for obligation until September 30, 2010. 


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AMDT. NO. 570 

1 OPERATION AND MAINTENANCE, ARMY NATIONAL

2 GUARD

3 For an additional amount for ‘‘Operation and Main4 tenance, Army National Guard’’, $215,557,000, to remain 

5 available for obligation until September 30, 2010. 

6 OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

7 For an additional amount for ‘‘Operation and Main8 tenance, Air National Guard’’, $20,922,000, to remain 

9 available for obligation until September 30, 2010. 

10 PROCUREMENT 

11 DEFENSE PRODUCTION ACT PURCHASES

12 For an additional amount for ‘‘Defense Production 

13 Act Purchases’’, $100,000,000, to remain available for ob14 ligation until September 30, 2010. 

15 RESEARCH, DEVELOPMENT, TEST AND 

16 EVALUATION 

17 RESEARCH, DEVELOPMENT, TEST AND EVALUATION, 

18 DEFENSE-WIDE

19 For an additional amount for ‘‘Research, Develop20 ment, Test and Evaluation, Defense-Wide’’, 

21 $200,000,000, to remain available for obligation until Sep22 tember 30, 2010. 


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AMDT. NO. 570 

1 OTHER DEPARTMENT OF DEFENSE PROGRAMS 

2 DEFENSE HEALTH PROGRAM

3 For an additional amount for ‘‘Defense Health Pro4 gram’’, $250,000,000 for operation and maintenance, to 

5 remain available for obligation until September 30, 2010. 

6 OFFICE OF THE INSPECTOR GENERAL

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

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

9 remain available for obligation until September 30, 2011, 

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

11 available until September 30, 2011. 

12 TITLE IV—ENERGY AND WATER 

13 DEVELOPMENT 

14 DEPARTMENT OF DEFENSE—CIVIL 

15 DEPARTMENT OF THE ARMY

16 CORPS OF ENGINEERS—CIVIL

17 INVESTIGATIONS

18 For an additional amount for ‘‘Investigations’’ for ex19 penses necessary where authorized by law for the collec20 tion and study of basic information pertaining to river and 

21 harbor, flood and storm damage reduction, shore protec22 tion, aquatic ecosystem restoration, and related needs; for 

23 surveys and detailed studies, and plans and specifications 

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1 tion projects and related efforts prior to construction; for 

2 restudy of authorized projects; and for miscellaneous in3 vestigations and, when authorized by law, surveys and de4 tailed studies, and plans and specifications of projects 

5 prior to construction, $25,000,000: Provided, That funds 

6 provided under this heading in this title shall only be used 

7 for programs, projects or activities that heretofore or here8 after receive funds provided in Acts making appropriations 

9 available for Energy and Water Development: Provided 

10 further, That funds provided under this heading in this 

11 title shall be used for programs, projects or activities or 

12 elements of programs, projects or activities that can be 

13 completed within the funds made available in that account 

14 and that will not require new budget authority to com15 plete: Provided further, That for projects that are being 

16 completed with funds appropriated in this Act that would 

17 otherwise be expired for obligation, expired funds appro18 priated in this Act may be used to pay the cost of associ19 ated supervision, inspection, over engineering and design 

20 on those projects and on subsequent claims, if any: Pro21 vided further, That the Secretary shall have unlimited re22 programming authority for these funds provided under 

23 this heading. 


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1 CONSTRUCTION

2 For an additional amount for ‘‘Construction’’ for ex3 penses necessary for the construction of river and harbor, 

4 flood and storm damage reduction, shore protection, 

5 aquatic ecosystem restoration, and related projects au6 thorized by law, $2,000,000,000, of which such sums as 

7 are necessary to cover the Federal share of construction 

8 costs for facilities under the Dredged Material Disposal 

9 Facilities program shall be derived from the Harbor Main10 tenance Trust Fund as authorized by Public Law 104– 

11 303: Provided, That not less than $200,000,000 of the 

12 funds provided shall be for water-related environmental in13 frastructure assistance: Provided further, That section 102 

14 of Public Law 109–103 (33 U.S.C. 2221) shall not apply 

15 to funds provided in this title: Provided further, That not16 withstanding any other provision of law, no funds shall 

17 be drawn from the Inland Waterways Trust Fund, as au18 thorized in Public Law 99–662: Provided further, That 

19 funds provided under this heading in this title shall only 

20 be used for programs, projects or activities that heretofore 

21 or hereafter receive funds provided in Acts making appro22 priations available for Energy and Water Development: 

23 Provided further, That funds provided under this heading 

24 in this title shall be used for programs, projects or activi25 ties or elements of programs, projects or activities that 


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AMDT. NO. 570 

1 can be completed within the funds made available in that 

2 account and that will not require new budget authority 

3 to complete: Provided further, That the limitation con4 cerning total project costs in section 902 of the Water Re5 sources Development Act of 1986, as amended (33 U.S.C. 

6 2280), shall not apply during fiscal year 2009 to any 

7 project that received funds provided in this title: Provided 

8 further, That funds appropriated under this heading may 

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

10 Chief of Engineers, to undertake work authorized to be 

11 carried out in accordance with section 14 of the Flood 

12 Control Act of 1946 (33 U.S.C. 701r); section 205 of the 

13 Flood Control Act of 1948 (33 U.S.C. 701s); section 206 

14 of the Water Resources Development Act of 1996 (33 

15 U.S.C. 2330); or section 1135 of the Water Resources De16 velopment Act of 1986 (33 U.S.C. 2309a), notwith17 standing the program cost limitations set forth in those 

18 sections: Provided further, That for projects that are being 

19 completed with funds appropriated in this Act that would 

20 otherwise be expired for obligation, expired funds appro21 priated in this Act may be used to pay the cost of associ22 ated supervision, inspection, over engineering and design 

23 on those projects and on subsequent claims, if any: Pro24 vided further, That the Secretary shall have unlimited reVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00063 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 programming authority for these funds provided under 

2 this heading. 

3 MISSISSIPPI RIVER AND TRIBUTARIES

4 For an additional amount for ‘‘Mississippi River and 

5 Tributaries’’ for expenses necessary for flood damage re6 duction projects and related efforts as authorized by law, 

7 $500,000,000, of which such sums as are necessary to 

8 cover the Federal share of operation and maintenance 

9 costs for inland harbors shall be derived from the Harbor 

10 Maintenance Trust Fund, pursuant to Public Law 99– 

11 662: Provided, That funds provided under this heading in 

12 this title shall only be used for programs, projects or ac13 tivities that heretofore or hereafter receive funds provided 

14 in Acts making appropriations available for Energy and 

15 Water Development: Provided further, That funds pro16 vided under this heading in this title shall be used for pro17 grams, projects or activities or elements of programs, 

18 projects or activities that can be completed within the 

19 funds made available in that account and that will not re20 quire new budget authority to complete: Provided further, 

21 That the limitation concerning total project costs in sec22 tion 902 of the Water Resources Development Act of 

23 1986, as amended (33 U.S.C. 2280), shall not apply dur24 ing fiscal year 2009 to any project that received funds pro25 vided in this title: Provided further, That for projects that 


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1 are being completed with funds appropriated in this Act 

2 that would otherwise be expired for obligation, expired 

3 funds appropriated in this Act may be used to pay the 

4 cost of associated supervision, inspection, over engineering 

5 and design on those projects and on subsequent claims, 

6 if any: Provided further, That the Secretary shall have un7 limited reprogramming authority for these funds provided 

8 under this heading. 

9 OPERATION AND MAINTENANCE

10 For an additional amount for ‘‘Operation and Main11 tenance’’ for expenses necessary for the operation, mainte12 nance, and care of existing river and harbor, flood and 

13 storm damage reduction, aquatic ecosystem restoration, 

14 and related projects authorized by law, and for surveys 

15 and charting of northern and northwestern lakes and con16 necting waters, clearing and straightening channels, and 

17 removal of obstructions to navigation, $1,900,000,000, of 

18 which such sums as are necessary to cover the Federal 

19 share of operation and maintenance costs for coastal har20 bors and channels, and inland harbors shall be derived 

21 from the Harbor Maintenance Trust Fund, pursuant to 

22 Public Law 99–662; and of which such sums as become 

23 available under section 217 of the Water Resources Devel24 opment Act of 1996, Public Law 104–303, shall be used 

25 to cover the cost of operation and maintenance of the 


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1 dredged material disposal facilities for which fees have 

2 been collected: Provided, That funds provided under this 

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

4 projects or activities that heretofore or hereafter receive 

5 funds provided in Acts making appropriations available for 

6 Energy and Water Development: Provided further, That 

7 funds provided under this heading in this title shall be 

8 used for programs, projects or activities or elements of 

9 programs, projects or activities that can be completed 

10 within the funds made available in that account and that 

11 will not require new budget authority to complete: Pro12 vided further, That $90,000,000 of the funds provided 

13 under this heading shall be used for activities described 

14 in section 9004 of Public Law 110–114: Provided further, 

15 That section 9006 of Public Law 110–114 shall not apply 

16 to funds provided in this title: Provided further, That for 

17 projects that are being completed with funds appropriated 

18 in this Act that would otherwise be expired for obligation, 

19 expired funds appropriated in this Act may be used to pay 

20 the cost of associated supervision, inspection, over engi21 neering and design on those projects and on subsequent 

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

23 have unlimited reprogramming authority for these funds 

24 provided under this heading. 


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1 REGULATORY PROGRAM

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

3 for expenses necessary for administration of laws per4 taining to regulation of navigable waters and wetlands, 

5 $25,000,000 is provided. 

6 FORMERLY UTILIZED SITES REMEDIAL ACTION PROGRAM

7 For an additional amount for ‘‘Formerly Utilized 

8 Sites Remedial Action Program’’ for expenses necessary 

9 to clean up contamination from sites in the United States 

10 resulting from work performed as part of the Nation’s 

11 early atomic energy program, $100,000,000: Provided fur12 ther, That funds provided under this heading in this title 

13 shall be used for programs, projects or activities or ele14 ments of programs, projects or activities that can be com15 pleted within the funds made available in that account and 

16 that will not require new budget authority to complete: 

17 Provided further, That for projects that are being com18 pleted with funds appropriated in this Act that would oth19 erwise be expired for obligation, expired funds appro20 priated in this Act may be used to pay the cost of associ21 ated supervision, inspection, over engineering and design 

22 on those projects and on subsequent claims, if any: Pro23 vided further, That the Secretary shall have unlimited re24 programming authority for these funds provided under 

25 this heading. 


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1 FLOOD CONTROL AND COASTAL EMERGENCIES

2 For an additional amount for ‘‘Flood Control and 

3 Coastal Emergencies’’ for expenses necessary for pre4 placement of materials and equipment, advance measures 

5 and other activities authorized by law, $50,000,000 is pro6 vided. 

7 DEPARTMENT OF THE INTERIOR 

8 BUREAU OF RECLAMATION

9 WATER AND RELATED RESOURCES

10 For an additional amount for management, develop11 ment, and restoration of water and related natural re12 sources and for related activities, including the operation, 

13 maintenance, and rehabilitation of reclamation and other 

14 facilities, participation in fulfilling related Federal respon15 sibilities to Native Americans, and related grants to, and 

16 cooperative and other agreements with, State and local 

17 governments, federally recognized Indian tribes, and oth18 ers, $1,400,000,000; of which such amounts as may be 

19 necessary may be advanced to the Colorado River Dam 

20 Fund: Provided, That of the total appropriated, the 

21 amount for program activities that can be financed by the 

22 Reclamation Fund or the Bureau of Reclamation special 

23 fee account established by 16 U.S.C. 460l–6a(i) shall be 

24 derived from that Fund or account: Provided further, That 

25 funds contributed under 43 U.S.C. 395 are available until 


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1 expended for the purposes for which contributed: Provided 

2 further, That funds advanced under 43 U.S.C. 397a shall 

3 be credited to this account and are available until ex4 pended for the same purposes as the sums appropriated 

5 under this heading: Provided further, That funds provided 

6 under this heading in this title shall only be used for pro7 grams, projects or activities that heretofore or hereafter 

8 receive funds provided in Acts making appropriations 

9 available for Energy and Water Development: Provided 

10 further, That funds provided in this Act shall be used for 

11 elements of projects, programs or activities that can be 

12 completed within these funding amounts and not create 

13 budgetary obligations in future fiscal years: Provided fur14 ther, That $50,000,000 of the funds provided under this 

15 heading may be transferred to the Department of the Inte16 rior for programs, projects and activities authorized by the 

17 Central Utah Project Completion Act (titles II–V of Public 

18 Law 102–575): Provided further, That $50,000,000 of the 

19 funds provided under this heading may be used for pro20 grams, projects, and activities authorized by the California 

21 Bay-Delta Restoration Act (Public Law 108–361): Pro22 vided further, That not less than $60,000,000 of the funds 

23 provided under this heading shall be used for rural water 

24 projects and shall be expended primarily on water intake 

25 and treatment facilities of such projects: Provided further, 


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1 That not less than $10,000,000 of the funds provided 

2 under this heading shall be used for a bureau-wide inspec3 tion of canals program in urbanized areas: Provided fur4 ther, 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 

15 to be established and adopted by the Commissioner, but 

16 in no case shall the repayment period exceed 25 years: 

17 Provided further, That for projects that are being com18 pleted with funds appropriated in this Act that would oth19 erwise be expired for obligation, expired funds appro20 priated in this Act may be used to pay the cost of associ21 ated supervision, inspection, over engineering and design 

22 on those projects and on subsequent claims, if any: Pro23 vided further, That the Secretary shall have unlimited re24 programming authority for these funds provided under 

25 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 

10 of the Energy Independence and Security Act of 2007 (42 

11 U.S.C. 17151 et seq.), of which $2,100,000,000 is avail12 able through the formula in subtitle E: Provided further, 

13 That the remaining $2,100,000,000 shall be awarded on 

14 a competitive basis only to competitive grant applicants 

15 from States in which the Governor certifies to the Sec16 retary of Energy that the applicable State regulatory au17 thority will implement the integrated resource planning 

18 and rate design modifications standards required to be 

19 considered under paragraphs (16) and (17) of section 

20 111(d) of the Public Utility Regulatory Policies Act of 

21 1978 (16 U.S.C. 2621(d)(16) and (17)); and the Governor 

22 will take all actions within his or her authority to ensure 

23 that the State, or the applicable units of local government 

24 that have authority to adopt building codes, will imple25 ment— 


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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 Conserva4 tion 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 

8 90.1–2007; and 

9 (C) a plan for implementing and enforcing the 

10 building energy codes described in subparagraphs 

11 (A) and (B) that is likely to ensure that at least 90 

12 percent of the new and renovated residential and 

13 commercial building space will meet the standards 

14 within 8 years after the date of enactment of this 

15 Act: 

16 Provided further, That $2,000,000,000 shall be available 

17 for grants for the manufacturing of advanced batteries 

18 and components and the Secretary shall provide facility 

19 funding awards under this section to manufacturers of ad20 vanced battery systems and vehicle batteries that are pro21 duced in the United States, including advanced lithium ion 

22 batteries, hybrid electrical systems, component manufac23 turers, and software designers: Provided further, That not24 withstanding section 3304 of title 5, United States Code, 

25 and without regard to the provisions of sections 3309 


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1 through 3318 of such title 5, the Secretary of Energy, 

2 upon a determination that there is a severe shortage of 

3 candidates or a critical hiring need for particular posi4 tions, may from within the funds provided, recruit and di5 rectly appoint highly qualified individuals into the com6 petitive service: Provided further, That such authority 

7 shall not apply to positions in the Excepted Service or the 

8 Senior Executive Service: Provided further, That any ac9 tion authorized herein shall be consistent with the merit 

10 principles of section 2301 of such title 5, and the Depart11 ment shall comply with the public notice requirements of 

12 section 3327 of such title 5. 

13 ELECTRICITY DELIVERY AND ENERGY RELIABILITY

14 For an additional amount for ‘‘Electricity Delivery 

15 and Energy Reliability’’, $4,500,000,000, for necessary 

16 expenses, to remain available until September 30, 2010: 

17 Provided, That $100,000,000 shall be available for worker 

18 training activities: Provided further, That notwithstanding 

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

20 regard to the provisions of sections 3309 through 3318 

21 of such title 5, the Secretary of Energy, upon a determina22 tion that there is a severe shortage of candidates or a crit23 ical hiring need for particular positions, may from within 

24 the funds provided, recruit and directly appoint highly 

25 qualified individuals into the competitive service: Provided 


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1 further, That such authority shall not apply to positions 

2 in the Excepted Service or the Senior Executive Service: 

3 Provided further, That any action authorized herein shall 

4 be consistent with the merit principles of section 2301 of 

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

6 public notice requirements of section 3327 of such title 

7 5: Provided, That for the purpose of facilitating the devel8 opment of regional transmission plans, the Office of Elec9 tricity Delivery and Energy Reliability within the Depart10 ment of Energy is provided $80,000,000 within the avail11 able funds to conduct a resource assessment and an anal12 ysis of future demand and transmission requirements: 

13 Provided further, That the Office of Electricity Delivery 

14 and Energy Reliability will provide technical assistance to 

15 the North American Electric Reliability Corporation, the 

16 regional reliability entities, the States, and other trans17 mission owners and operators for the formation of inter18 connection-based transmission plans for the Eastern and 

19 Western Interconnections and ERCOT: Provided further, 

20 That such assistance may include modeling, support to re21 gions and States for the development of coordinated State 

22 electricity policies, programs, laws, and regulations: Pro23 vided further, That $10,000,000 is provided to implement 

24 section 1305 of Public Law 110–140. 


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AMDT. NO. 570 

1 FOSSIL ENERGY RESEARCH AND DEVELOPMENT

2 For an additional amount for ‘‘Fossil Energy Re3 search and Development’’, $4,600,000,000, to remain 

4 available until September 30, 2010: Provided, That 

5 $2,000,000,000 is available for one or more near zero 

6 emissions powerplant(s): Provided further, $1,000,000,000 

7 is available for selections under the Department’s Clean 

8 Coal Power Initiative Round III Funding Opportunity An9 nouncement; notwithstanding the mandatory eligibility re10 quirements of the Funding Opportunity Announcement, 

11 the Department shall consider applications that utilize pe12 troleum coke for some or all of the project’s fuel input: 

13 Provided further, $1,520,000,000 is available for a com14 petitive solicitation pursuant to section 703 of Public Law 

15 110–140 for projects that demonstrate carbon capture 

16 from industrial sources: Provided further, That awards for 

17 such projects may include plant efficiency improvements 

18 for integration with carbon capture technology. 

19 NON-DEFENSE ENVIRONMENTAL CLEANUP

20 For an additional amount for ‘‘Non-Defense Environ21 mental Cleanup’’, $483,000,000, to remain available until 

22 September 30, 2010. 


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1 URANIUM ENRICHMENT DECONTAMINATION AND

2 DECOMMISSIONING FUND

3 For an additional amount for ‘‘Uranium Enrichment 

4 Decontamination and Decommissioning Fund’’, 

5 $390,000,000, to remain available until September 30, 

6 2010, of which $70,000,000 shall be available in accord7 ance with title X, subtitle A of the Energy Policy Act of 

8 1992. 

9 SCIENCE

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

11 $330,000,000, to remain available until September 30, 

12 2010. 

13 TITLE 17—INNOVATIVE TECHNOLOGY LOAN

14 GUARANTEE PROGRAM

15 Subject to section 502 of the Congressional Budget 

16 Act of 1974, commitments to guarantee loans under sec17 tion 1702(b)(2) of the Energy Policy Act of 2005, shall 

18 not exceed a total principal amount of $50,000,000,000 

19 for eligible projects, to remain available until committed: 

20 Provided, That these amounts are in addition to any au21 thority provided elsewhere in this Act and this and pre22 vious fiscal years: Provided further, That such sums as are 

23 derived from amounts received from borrowers pursuant 

24 to section 1702(b)(2) of the Energy Policy Act of 2005 

25 under this heading in this and prior Acts, shall be collected 


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1 in accordance with section 502(7) of the Congressional 

2 Budget Act of 1974: Provided further, That the source of 

3 such payment received from borrowers is not a loan or 

4 other debt obligation that is guaranteed by the Federal 

5 Government: Provided further, That pursuant to section 

6 1702(b)(2) of the Energy Policy Act of 2005, no appro7 priations are available to pay the subsidy cost of such 

8 guarantees: Provided further, That none of the loan guar9 antee authority made available in this Act shall be avail10 able for commitments to guarantee loans under section 

11 1702(b)(2) of the Energy Policy Act of 2005 for any 

12 projects where funds, personnel, or property (tangible or 

13 intangible) of any Federal agency, instrumentality, per14 sonnel or affiliated entity are expected to be used (directly 

15 or indirectly) through acquisitions, contracts, demonstra16 tions, exchanges, grants, incentives, leases, procurements, 

17 sales, other transaction authority, or other arrangements, 

18 to support the project or to obtain goods or services from 

19 the project: Provided further, That none of the loan guar20 antee authority made available in this Act shall be avail21 able under section 1702(b)(2) of the Energy Policy Act 

22 of 2005 for any project unless the Director of the Office 

23 of Management and Budget has certified in advance in 

24 writing that the loan guarantee and the project comply 

25 with the provisions under this title: Provided further, That 


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AMDT. NO. 570 

1 for an additional amount for the cost of guaranteed loans 

2 authorized by section 1702(b)(1) and section 1705 of the 

3 Energy Policy Act of 2005, $8,500,000,000, available 

4 until expended, to pay the costs of guarantees made under 

5 this section: Provided further, That of the amount pro6 vided for Title XVII, $15,000,000 shall be used for admin7 istrative expenses in carrying out the guaranteed loan pro8 gram. 

9 OFFICE OF THE INSPECTOR GENERAL

10 For necessary expenses of the Office of the Inspector 

11 General in carrying out the provisions of the Inspector 

12 General Act of 1978, as amended, $5,000,000, to remain 

13 available until September 30, 2012, and an additional 

14 $10,000,000 for such purposes, to remain available until 

15 September 30, 2012. 

16 ATOMIC ENERGY DEFENSE ACTIVITIES 

17 NATIONAL NUCLEAR SECURITY ADMINISTRATION

18 WEAPONS ACTIVITIES

19 For an additional amount for weapons activities, 

20 $1,000,000,000, to remain available until September 30, 

21 2010. 


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AMDT. NO. 570 

1 ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES

2 DEFENSE ENVIRONMENTAL CLEANUP

3 For an additional amount for ‘‘Defense Environ4 mental Cleanup’’, $5,527,000,000, to remain available 

5 until September 30, 2010. 

6 CONSTRUCTION, REHABILITATION, OPERATION, AND

7 MAINTENANCE, WESTERN AREA POWER ADMINIS8 TRATION

9 For carrying out the functions authorized by title III, 

10 section 302(a)(1)(E) of the Act of August 4, 1977 (42 

11 U.S.C. 7152), and other related activities including con12 servation and renewable resources programs as author13 ized, $10,000,000, to remain available until expended: 

14 Provided, That the Administrator shall establish such per15 sonnel staffing levels as he deems necessary to economi16 cally and efficiently complete the activities pursued under 

17 the authority granted by section 402 of this Act: Provided 

18 further, That this appropriation is non-reimbursable. 

19 GENERAL PROVISIONS—THIS TITLE 

20 SEC. 401. BONNEVILLE POWER ADMINISTRATION

21 BORROWING AUTHORITY. For the purposes of providing 

22 funds to assist in financing the construction, acquisition, 

23 and replacement of the transmission system of the Bonne24 ville Power Administration and to implement the authority 

25 of the Administrator of the Bonneville Power AdministraVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00079 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 tion under the Pacific Northwest Electric Power Planning 

2 and Conservation Act (16 U.S.C. 839 et seq.), an addi3 tional $3,250,000,000 in borrowing authority is made 

4 available under the Federal Columbia River Transmission 

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

6 at any time. 

7 SEC. 402. WESTERN AREA POWER ADMINISTRATION

8 BORROWING AUTHORITY. The Hoover Power Plant Act of 

9 1984 (Public Law 98–381) is amended by adding at the 

10 end the following: 

11 ‘‘TITLE III—BORROWING 

12 AUTHORITY 

13 ‘‘SEC. 301. WESTERN AREA POWER ADMINISTRATION BOR14 ROWING AUTHORITY. 

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

16 ‘‘(1) ADMINISTRATOR.—The term ‘Adminis17 trator’ means the Administrator of the Western 

18 Area Power Administration. 

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

20 the Secretary of the Treasury. 

21 ‘‘(b) AUTHORITY.— 

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

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

24 (5)— 


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AMDT. NO. 570 

1 ‘‘(A) the Western Area Power Administra2 tion may borrow funds from the Treasury; and 

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

4 appropriation and without fiscal year limitation, 

5 loan to the Western Area Power Administra6 tion, on such terms as may be fixed by the Ad7 ministrator and the Secretary, such sums (not 

8 to exceed, in the aggregate (including deferred 

9 interest), $3,250,000,000 in outstanding repay10 able balances at any one time) as, in the judg11 ment of the Administrator, are from time to 

12 time required for the purpose of— 

13 ‘‘(i) constructing, financing, facili14 tating, planning, operating, maintaining, 

15 or studying construction of new or up16 graded electric power transmission lines 

17 and related facilities with at least one ter18 minus within the area served by the West19 ern Area Power Administration; and 

20 ‘‘(ii) delivering or facilitating the de21 livery of power generated by renewable en22 ergy resources constructed or reasonably 

23 expected to be constructed after the date 

24 of enactment of this section. 


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

2 charged in connection with any loan made pursuant 

3 to this subsection shall be fixed by the Secretary, 

4 taking into consideration market yields on out5 standing marketable obligations of the United States 

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

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

8 Administration may refinance loans taken pursuant 

9 to this section within the Treasury. 

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

11 permit other entities to participate in the financing, 

12 construction and ownership projects financed under 

13 this section. 

14 ‘‘(5) CONGRESSIONAL REVIEW OF DISBURSE15 MENT.—Effective upon the date of enactment of this 

16 section, the Administrator shall have the authority 

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

18 the Administrator seeks to borrow funds above 

19 $1,750,000,000, the funds will be disbursed unless 

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

21 such request, a joint resolution that rescinds the re22 mainder of the balance of the borrowing authority 

23 provided in this section. 

24 ‘‘(c) TRANSMISSION LINE AND RELATED FACILITY

25 PROJECTS.— 


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AMDT. NO. 570 

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

2 each transmission line and related facility project in 

3 which the Western Area Power Administration par4 ticipates pursuant to this section shall be treated as 

5 separate and distinct from— 

6 ‘‘(A) each other such project; and 

7 ‘‘(B) all other Western Area Power Admin8 istration power and transmission facilities. 

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

10 Administration shall apply the proceeds from the use 

11 of the transmission capacity from an individual 

12 project under this section to the repayment of the 

13 principal and interest of the loan from the Treasury 

14 attributable to that project, after reserving such 

15 funds as the Western Area Power Administration 

16 determines are necessary— 

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

18 are provided; and 

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

20 maintaining the new project from which the 

21 revenues are derived. 

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

23 use of projects under this section shall be the only 

24 source of revenue for— 


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AMDT. NO. 570 

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

2 the project; and 

3 ‘‘(B) payment of expenses for ancillary 

4 services and operation and maintenance. 

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

6 this section confers on the Administrator any addi7 tional authority or obligation to provide ancillary 

8 services to users of transmission facilities developed 

9 under this section. 

10 ‘‘(5) TREATMENT OF CERTAIN REVENUES.— 

11 Revenue from ancillary services provided by existing 

12 Federal power systems to users of transmission 

13 projects funded pursuant to this section shall be 

14 treated as revenue to the existing power system that 

15 provided the ancillary services. 

16 ‘‘(d) CERTIFICATION.— 

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

18 the Western Area Power Administration participates 

19 pursuant to this section, the Administrator shall cer20 tify, prior to committing funds for any such project, 

21 that— 

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

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

24 system reliability or operations, or other statu25 tory obligations; and 


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AMDT. NO. 570 

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

2 proceeds from the project shall be adequate to 

3 make repayment of the loan. 

4 ‘‘(2) FORGIVENESS OF BALANCES.— 

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

6 useful life of a project, there is a remaining bal7 ance owed to the Treasury under this section, 

8 the balance shall be forgiven. 

9 ‘‘(B) UNCONSTRUCTED PROJECTS.—Funds 

10 expended to study projects that are considered 

11 pursuant to this section but that are not con12 structed shall be forgiven. 

13 ‘‘(C) NOTIFICATION.—The Administrator 

14 shall notify the Secretary of such amounts as 

15 are to be forgiven under this paragraph. 

16 ‘‘(e) PUBLIC PROCESSES.— 

17 ‘‘(1) POLICIES AND PRACTICES.—Prior to re18 questing any loans under this section, the Adminis19 trator shall use a public process to develop practices 

20 and policies that implement the authority granted by 

21 this section. 

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

23 of selecting potential projects to be funded under 

24 this section, the Administrator shall seek Requests 

25 For Interest from entities interested in identifying 


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AMDT. NO. 570 

1 potential projects through one or more notices pub2 lished in the Federal Register.’’ 

3 SEC. 403. TECHNICAL CORRECTIONS TO THE EN4 ERGY INDEPENDENCE AND SECURITY ACT OF 2007. Title 

5 XIII of the Energy Independence and Security Act of 

6 2007 (15 U.S.C. 17381 and following) is amended as fol7 lows: 

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

9 1304(b)(3) to read as follows: 

10 ‘‘(A) IN GENERAL.—In carrying out the 

11 initiative, the Secretary shall provide financial 

12 support to smart grid demonstration projects 

13 including those in rural areas and/or areas 

14 where the majority of generation and trans15 mission assets are controlled by a tax-exempt 

16 entity.’’. 

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

18 1304(b)(3) to read as follows: 

19 ‘‘(C) FEDERAL SHARE OF COST OF TECH20 NOLOGY INVESTMENTS.—The Secretary shall 

21 provide to an electric utility described in sub22 paragraph (B) or to other parties financial as23 sistance for use in paying an amount equal to 

24 not more than 50 percent of the cost of quali25 fying advanced grid technology investments 


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1 made by the electric utility or other party to 

2 carry out a demonstration project.’’. 

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

4 1304(b)(3)(D) as follows: 

5 ‘‘(E) AVAILABILITY OF DATA.—The 

6 Secretary shall establish and maintain a 

7 smart grid information clearinghouse in a 

8 timely manner which will make data from 

9 smart grid demonstration projects and 

10 other sources available to the public. As a 

11 condition of receiving financial assistance 

12 under this subsection, a utility or other 

13 participant in a smart grid demonstration 

14 project shall provide such information as 

15 the Secretary may require to become avail16 able through the smart grid information 

17 clearinghouse in the form and within the 

18 timeframes as directed by the Secretary. 

19 The Secretary shall assure that business 

20 proprietary information and individual cus21 tomer information is not included in the 

22 information made available through the 

23 clearinghouse.’’. 

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

25 1304(c) to read as follows: 


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

2 may be necessary.’’. 

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

4 by striking ‘‘reimbursement of one-fifth (20 per5 cent)’’ and inserting ‘‘grants of up to one-half (50 

6 percent)’’. 

7 (6) By striking the last sentence of subsection 

8 (b)(9) of section 1306. 

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

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

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

12 to read as follows: 

13 ‘‘(e) The Secretary shall— 

14 ‘‘(1) establish within 60 days after the enact15 ment of the American Recovery and Reinvestment 

16 Act of 2009 procedures by which applicants can ob17 tain grants of not more than one-half of their docu18 mented costs; 

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

20 no duplication or multiple payment for the same in21 vestment or costs, that the grant goes to the party 

22 making the actual expenditures for Qualifying Smart 

23 Grid Investments, and that the grants made have 

24 significant effect in encouraging and facilitating the 

25 development of a smart grid; 


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AMDT. NO. 570 

1 ‘‘(3) maintain public records of grants made, 

2 recipients, and qualifying Smart Grid investments 

3 which have received grants; 

4 ‘‘(4) establish procedures to provide advance 

5 payment of moneys up to the full amount of the 

6 grant award; and 

7 ‘‘(5) 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. 404. TEMPORARY STIMULUS LOAN GUARANTEE

11 PROGRAM. (a) AMENDMENT.—Title XVII of the Energy 

12 Policy Act of 2005 (42 U.S.C. 16511 et seq.) is amended 

13 by adding the following at the end: 

14 ‘‘SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOY15 MENT OF RENEWABLE ENERGY AND ELEC16 TRIC POWER TRANSMISSION PROJECTS. 

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

18 the Secretary may make guarantees under this section 

19 only for commercial technology projects under subsection 

20 (b) that will reach financial close not later than September 

21 30, 2012. 

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

23 categories shall be eligible for support under this section: 

24 ‘‘(1) Renewable energy systems. 

25 ‘‘(2) Electric power transmission systems. 


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AMDT. NO. 570 

1 ‘‘(c) AUTHORIZATION LIMIT.—There are authorized 

2 to be appropriated $10,000,000,000 to the Secretary for 

3 fiscal years 2009 through 2012 to provide the cost of 

4 guarantees made under section. 

5 ‘‘(d) SUNSET.—The authority to enter into guaran6 tees under this section shall expire on September 30, 

7 2012.’’. 

8 (b) TABLE OF CONTENTS AMENDMENT.—The table 

9 of contents for the Energy Policy Act of 2005 is amended 

10 by inserting after the item relating to section 1704 the 

11 following new item: 

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

electric power transmission projects.’’. 

12 SEC. 405. WEATHERIZATION PROGRAM AMEND13 MENTS. (a) INCOME LEVEL.—Section 412(7) of the En14 ergy Conservation and Production Act (42 U.S.C. 

15 6862(7)) is amended by striking ‘‘150 percent’’ both 

16 places it appears and inserting ‘‘200 percent’’. 

17 (b) ASSISTANCE LEVEL PER DWELLING UNIT.—Sec18 tion 415(c)(1) of the Energy Conservation and Production 

19 Act (42 U.S.C. 6865(c)(1)) is amended by striking 

20 ‘‘$2,500’’ and inserting ‘‘$5,000’’. 

21 (c) TRAINING AND TECHNICAL ASSISTANCE.—Sec22 tion 416 of the Energy Conservation and Production Act 

23 (42 U.S.C. 6866) is amended by striking ‘‘10 percent’’ 

24 and inserting ‘‘up to 20 percent’’. 


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1 SEC. 406. TECHNICAL CORRECTIONS TO PUBLIC

2 UTILITY REGULATORY POLICIES ACT OF 1978. (a) Sec3 tion 111(d) of the Public Utility Regulatory Policies Act 

4 of 1978 (16 U.S.C. 2621(d)) is amended by redesignating 

5 paragraph (16) relating to consideration of smart grid in6 vestments (added by section 1307(a) of Public Law 110– 

7 140) as paragraph (18) and by redesignating paragraph 

8 (17) relating to smart grid information (added by section 

9 1308(a) of Public Law 110–140) as paragraph (19). 

10 (b) Subsections (b) and (d) of section 112 of the Pub11 lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 

12 2622) are each amended by striking ‘‘(17) through (18)’’ 

13 in each place it appears and inserting ‘‘(16) through 

14 (19)’’. 

15 TITLE V—FINANCIAL SERVICES AND GENERAL 

16 GOVERNMENT 

17 DEPARTMENT OF THE TREASURY 

18 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

19 FUND PROGRAM ACCOUNT

20 For an additional amount for ‘‘Community Develop21 ment Financial Institutions Fund Program Account’’, 

22 $250,000,000, to remain available until September 30, 

23 2010, for qualified applicants under the fiscal year 2008 

24 and 2009 funding rounds of the Community Development 

25 Financial Institutions Program, of which up to 


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1 $20,000,000 may be for financial assistance, technical as2 sistance, training and outreach programs, including up to 

3 $5,000 for subsistence expenses, designed to benefit Na4 tive American, Native Hawaiian, and Alaskan Native com5 munities and provided primarily through qualified commu6 nity development lender organizations with experience and 

7 expertise in community development banking and lending 

8 in Indian country, Native American organizations, tribes 

9 and tribal organizations and other suitable providers and 

10 up to $5,000,000 may be used for administrative ex11 penses: Provided, That for purposes of the fiscal year 2008 

12 and 2009 funding rounds, the following statutory provi13 sions are hereby waived: 12 U.S.C. 4707(e) and 12 U.S.C. 

14 4707(d): Provided further, That no awardee, together with 

15 its subsidiaries and affiliates, may be awarded more than 

16 15 percent of the aggregate funds available during each 

17 of fiscal years 2008 and 2009 from the Community Devel18 opment Financial Institutions Program: Provided further, 

19 That no later than 60 days after the date of enactment 

20 of this Act, the Department of the Treasury shall submit 

21 to the Committees on Appropriations of the House of Rep22 resentatives and the Senate a detailed expenditure plan 

23 for funds provided under this heading. 


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AMDT. NO. 570 

1 DISTRICT OF COLUMBIA 

2 FEDERAL PAYMENTS

3 FEDERAL PAYMENT TO THE DISTRICT OF COLUMBIA

4 WATER AND SEWER AUTHORITY

5 For a Federal payment to the District of Columbia 

6 Water and Sewer Authority, $125,000,000, to remain 

7 available until September 30, 2010, to continue implemen8 tation of the Combined Sewer Overflow Long-Term Con9 trol Plan: Provided, That the District of Columbia Water 

10 and Sewer Authority provide a 100 percent match for this 

11 payment: Provided further, That no later than 60 days 

12 after the date of enactment of this Act, the District of 

13 Columbia Water and Sewer Authority shall submit to the 

14 Committees on Appropriations of the House of Represent15 atives and the Senate a detailed expenditure plan for 

16 funds provided under this heading: Provided further, That 

17 such expenditure plan shall include a description of each 

18 specific project, how specific projects will further the ob19 jectives of the Long-Term Control Plan, and all funding 

20 sources for each project. 


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AMDT. NO. 570 

1 GENERAL SERVICES ADMINISTRATION 

2 REAL PROPERTY ACTIVITIES

3 FEDERAL BUILDINGS FUND

4 LIMITATIONS ON AVAILABILITY OF REVENUE

5 (INCLUDING TRANSFER OF FUNDS)

6 For an additional amount to be deposited in the Fed7 eral Buildings Fund, $5,548,000,000, to carry out the 

8 purposes of the Fund, of which not less than 

9 $1,400,000,000 shall be available for Federal buildings 

10 and United States courthouses, not less than 

11 $1,200,000,000 shall be available for border stations, and 

12 not less than $2,500,000,000 shall be available for meas13 ures necessary to convert GSA facilities to High-Perform14 ance Green Buildings, as defined in section 401 of Public 

15 Law 110–140: Provided, That not to exceed $108,000,000 

16 of the amounts provided under this heading may be ex17 pended for rental of space, related to leasing of temporary 

18 space in connection with projects funded under this head19 ing: Provided further, That not to exceed $127,000,000 

20 of the amounts provided under this heading may be ex21 pended for building operations, for the administrative 

22 costs of completing projects funded under this heading: 

23 Provided further, That not less than $5,000,000,000 of the 

24 funds provided under this heading shall be obligated by 

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1 trator of General Services is authorized to initiate design, 

2 construction, repair, alteration, and other projects through 

3 existing authorities of the Administrator: Provided further, 

4 That the General Services Administration shall submit a 

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

6 available in this Act to the Committees on Appropriations 

7 of the House of Representatives and the Senate within 60 

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

9 the amounts provided for converting GSA facilities to 

10 High-Performance Green Buildings, $4,000,000 shall be 

11 transferred to and merged with ‘‘Government-Wide Pol12 icy’’, for carrying out the provisions of section 436 of the 

13 Energy Independence and Security Act of 2007 (Public 

14 Law 110–140), establishing an Office of Federal High15 Performance Green Buildings, to remain available until 

16 September 30, 2010: Provided further, That within the 

17 overall amount to be deposited into the Fund, 

18 $448,000,000 shall remain available until September 30, 

19 2011, for the development and construction of the head20 quarters for the Department of Homeland Security, except 

21 that none of the preceding provisos shall apply to amounts 

22 made available under this proviso. 


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1 ENERGY-EFFICIENT FEDERAL MOTOR VEHICLE FLEET

2 PROCUREMENT

3 For capital expenditures and necessary expenses of 

4 acquiring motor vehicles with higher fuel economy, includ5 ing: hybrid vehicles; neighborhood electric vehicles; electric 

6 vehicles; and commercially-available, plug-in hybrid vehi7 cles, $300,000,000, to remain available until September 

8 30, 2011. 

9 OFFICE OF INSPECTOR GENERAL

10 For an additional amount for the Office of the In11 spector General, to remain available until September 30, 

12 2011, $2,000,000 and an additional $5,000,000 for such 

13 purposes, 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 provi18 sions of title XV of this Act, $7,000,000, to remain avail19 able until 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 

24 is for marketing, management, and technical assistance 

25 under 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 

8 of this Act, the Small Business Administration shall sub9 mit to the Committees on Appropriations of the House 

10 of Representatives and the Senate a detailed expenditure 

11 plan for funds provided under the heading ‘‘Small Busi12 ness Administration’’ 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 

16 General Act of 1978, $10,000,000, to remain available 

17 until September 30, 2011. 

18 SURETY BOND GUARANTEES REVOLVING FUND

19 For additional capital for the Surety Bond Guaran20 tees Revolving Fund, authorized by the Small Business 

21 Investment Act of 1958, $15,000,000, to remain available 

22 until 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 

4 guaranteed loans, $515,000,000 shall be for loan subsidies 

5 and loan modifications for loans to small business con6 cerns authorized in section 501(a) of this title; and 

7 $100,000,000 shall be for loan subsidies and loan modi8 fications for loans to small business concerns authorized 

9 in section 501(b) of this title: Provided further, That such 

10 costs, including the cost of modifying such loans, shall be 

11 as defined in section 502 of the Congressional Budget Act 

12 of 1974. 

13 ADMINISTRATIVE PROVISIONS—SMALL BUSINESS

14 ADMINISTRATION

15 SEC. 501. ECONOMIC STIMULUS FOR SMALL BUSI16 NESS CONCERNS. (a) TEMPORARY FEE ELIMINATION FOR

17 THE 7(a) LOAN PROGRAM.—Until September 30, 2010, 

18 and to the extent that the cost of such elimination of fees 

19 is offset by appropriations, with respect to each loan guar20 anteed under section 7(a) of the Small Business Act (15 

21 U.S.C. 636(a)) for which the application is approved on 

22 or after the date of enactment of this Act, the Adminis23 trator shall— 


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1 (1) in lieu of the fee otherwise applicable under 

2 section 7(a)(23)(A) of the Small Business Act (15 

3 U.S.C. 636(a)(23)(A)), collect no fee; and 

4 (2) in lieu of the fee otherwise applicable under 

5 section 7(a)(18)(A) of the Small Business Act (15 

6 U.S.C. 636(a)(18)(A)), collect no fee. 

7 (b) TEMPORARY FEE ELIMINATION FOR THE 504 

8 LOAN PROGRAM.— 

9 (1) IN GENERAL.—Until September 30, 2010, 

10 and to the extent the cost of such elimination in fees 

11 is offset by appropriations, with respect to each 

12 project or loan guaranteed by the Administrator 

13 under title V of the Small Business Investment Act 

14 of 1958 (15 U.S.C. 695 et seq.) for which an appli15 cation is approved or pending approval on or after 

16 the date of enactment of this Act— 

17 (A) the Administrator shall, in lieu of the 

18 fee otherwise applicable under section 503(d)(2) 

19 of the Small Business Investment Act of 1958 

20 (15 U.S.C. 697(d)(2)), collect no fee; 

21 (B) a development company shall, in lieu 

22 of the processing fee under section 

23 120.971(a)(1) of title 13, Code of Federal Reg24 ulations (relating to fees paid by borrowers), or 

25 any successor thereto, collect no fee. 


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AMDT. NO. 570 

1 (2) REIMBURSEMENT FOR WAIVED FEES.— 

2 (A) IN GENERAL.—To the extent that the 

3 cost of such payments is offset by appropria4 tions, the Administrator shall reimburse each 

5 development company that does not collect a 

6 processing fee pursuant to paragraph (1)(B). 

7 (B) AMOUNT.—The payment to a develop8 ment company under subparagraph (A) shall be 

9 in an amount equal to 1.5 percent of the net 

10 debenture proceeds for which the development 

11 company does not collect a processing fee pur12 suant to paragraph (1)(B). 

13 (c) TEMPORARY FEE ELIMINATION OF LENDER

14 OVERSIGHT FEES.—Until September 30, 2010, and to the 

15 extent the cost of such elimination in fees is offset by ap16 propriations, the Administrator shall, in lieu of the fee 

17 otherwise applicable under section 5(b)(14) of the Small 

18 Business Act (15 U.S.C. 634(b)(14)), collect no fee. 

19 (d) APPLICATION OF FEE ELIMINATIONS.—The Ad20 ministrator shall eliminate fees under subsections (a), (b), 

21 and (c) until the amount provided for such purposes, as 

22 applicable, under the headings ‘‘Salaries and Expenses’’ 

23 and ‘‘Business Loans Program Account’’ under the head24 ing ‘‘Small Business Administration’’ under this Act are 

25 expended. 


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AMDT. NO. 570 

1 SEC. 502. FINANCIAL ASSISTANCE PROGRAM IM2 PROVEMENTS. (a) 7(a) LOAN MAXIMUM AMOUNT.—Sec3 tion 7(a)(3)(A) of the Small Business Act (15 U.S.C. 

4 636(a)(3)(A)) is amended by striking ‘‘$1,500,000 (or if 

5 the gross loan amount would exceed $2,000,000)’’ and in6 serting ‘‘$2,250,000 (or if the gross loan amount would 

7 exceed $3,000,000)’’. 

8 (b) SMALL BUSINESS INVESTMENT COMPANIES.— 

9 (1) MAXIMUM LEVERAGE.—Section 303(b) of 

10 the Small Business Investment Act of 1958 (15 

11 U.S.C. 683(b)) is amended— 

12 (A) in paragraph (2), by striking subpara13 graphs (A), (B), and (C) and inserting the fol14 lowing: 

15 ‘‘(A) IN GENERAL.—The maximum 

16 amount of outstanding leverage made available 

17 to any 1 company licensed under section 301(c) 

18 may not exceed the lesser of— 

19 ‘‘(i) 300 percent of the private capital 

20 of the company; or 

21 ‘‘(ii) $150,000,000. 

22 ‘‘(B) MULTIPLE LICENSES UNDER COM23 MON CONTROL.—The maximum amount of out24 standing leverage made available to 2 or more 

25 companies licensed under section 301(c) that 


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1 are commonly controlled (as determined by the 

2 Administrator) may not exceed $225,000,000. 

3 ‘‘(C) INVESTMENTS IN LOW-INCOME GEO4 GRAPHIC AREAS.— 

5 ‘‘(i) IN GENERAL.—The maximum 

6 amount of outstanding leverage made 

7 available to— 

8 ‘‘(I) any 1 company described in 

9 clause (ii) may not exceed the lesser 

10 of— 

11 ‘‘(aa) 300 percent of private 

12 capital of the company; or 

13 ‘‘(bb) $175,000,000; and 

14 ‘‘(II) 2 or more companies de15 scribed in clause (ii) that are com16 monly controlled (as determined by 

17 the Administrator) may not exceed 

18 $250,000,000. 

19 ‘‘(ii) APPLICABILITY.—A company de20 scribed in this clause is a company licensed 

21 under section 301(c) that certifies in writ22 ing that not less than 50 percent of the 

23 dollar amount of investments of that com24 pany shall be made in companies that are 

25 located in a low-income geographic area 


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1 (as that term is defined in section 351).’’; 

2 and 

3 (B) by striking paragraph (4). 

4 (2) INVESTMENTS IN SMALLER ENTER5 PRISES.—Section 303(d) of the Small Business In6 vestment Act of 1958 (15 U.S.C. 683(d)) is amend7 ed to read as follows: 

8 ‘‘(d) INVESTMENTS IN SMALLER ENTERPRISES.— 

9 The Administrator shall require each licensee, as a condi10 tion of approval of an application for leverage, to certify 

11 in writing that not less than 25 percent of the aggregate 

12 dollar amount of financings of that licensee shall be pro13 vided to smaller enterprises.’’. 

14 (3) MAXIMUM INVESTMENT IN A COMPANY.— 

15 Section 306(a) of the Small Business Investment 

16 Act of 1958 (15 U.S.C. 686(a)) is amended by strik17 ing ‘‘20 per centum’’ and inserting ‘‘30 percent’’. 

18 (c) MAXIMUM 504 LOAN SIZE.—Section 502(2)(A) 

19 of the Small Business Investment Act of 1958 (15 U.S.C. 

20 696(2)(A)) is amended— 

21 (1) in clause (i), by striking ‘‘$1,500,000’’ and 

22 inserting ‘‘$3,000,000’’; 

23 (2) in clause (ii), by striking ‘‘$2,000,000’’ and 

24 inserting ‘‘$3,500,000’’; and 


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AMDT. NO. 570 

1 (3) in clause (iii), by striking ‘‘$4,000,000’’ and 

2 inserting ‘‘$5,500,000’’. 

3 SEC. 503. LOW-INTEREST REFINANCING. Section 

4 502 of the Small Business Investment Act of 1958 (15 

5 U.S.C. 696) is amended by adding at the end the fol6 lowing: 

7 ‘‘(7) PERMISSIBLE DEBT FINANCING.—A fi8 nancing under this title may include refinancing of 

9 existing indebtedness, in an amount not to exceed 50 

10 percent of the projected cost of the project financed 

11 under this title, if— 

12 ‘‘(A) the project financed under this title 

13 involves the expansion of a small business con14 cern; 

15 ‘‘(B) the existing indebtedness is 

16 collateralized by fixed assets; 

17 ‘‘(C) the existing indebtedness was in18 curred for the benefit of the small business con19 cern; 

20 ‘‘(D) the proceeds of the existing indebted21 ness were used to acquire land (including a 

22 building situated thereon), to construct or ex23 pand a building thereon, or to purchase equip24 ment; 


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AMDT. NO. 570 

1 ‘‘(E) the borrower has been current on all 

2 payments due on the existing indebtedness for 

3 not less than 1 year preceding the proposed 

4 date of refinancing; 

5 ‘‘(F) the financing under this title will pro6 vide better terms or a better rate of interest 

7 than exists on the existing indebtedness on the 

8 proposed date of refinancing; 

9 ‘‘(G) the financing under this title is not 

10 being used to refinance any debt guaranteed by 

11 the Government; and 

12 ‘‘(H) the financing under this title will be 

13 used only for— 

14 ‘‘(i) refinancing existing indebtedness; 

15 or 

16 ‘‘(ii) costs relating to the project fi17 nanced under this title.’’. 

18 SEC. 504. DEFINITIONS. Under the heading ‘‘Small 

19 Business Administration’’ in this title— 

20 (1) the terms ‘‘Administration’’ and ‘‘Adminis21 trator’’ mean the Small Business Administration 

22 and the Administrator thereof, respectively; 

23 (2) the term ‘‘development company’’ has the 

24 meaning given the term ‘‘development companies’’ in 


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AMDT. NO. 570 

1 section 103 of the Small Business Investment Act of 

2 1958 (15 U.S.C. 662); and 

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

4 same meaning as in section 3 of the Small Business 

5 Act (15 U.S.C. 632). 

6 SEC. 505. SURETY BONDS. 

7 (a) MAXIMUM BOND AMOUNT.—Section 411(a)(1) of 

8 the Small Business Investment Act of 1958 (15 U.S.C. 

9 694b(a)(1)) is amended— 

10 (1) by inserting ‘‘(A)’’ after ‘‘(1)’’; 

11 (2) by striking ‘‘$2,000,000’’ and inserting 

12 ‘‘$5,000,000’’; and 

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

14 ‘‘(B) The Administrator may guarantee a surety 

15 under subparagraph (A) for a total work order or contract 

16 amount that does not exceed $10,000,000, if a contracting 

17 officer of a Federal agency certifies that such a guarantee 

18 is necessary.’’. 

19 (b) SIZE STANDARDS.—Section 410 of the Small 

20 Business Investment Act of 1958 (15 U.S.C. 694a) is 

21 amended by adding at the end the following: 

22 ‘‘(9) Notwithstanding any other provision of 

23 law or any rule, regulation, or order of the Adminis24 tration, for purposes of sections 410, 411, and 412 

25 the term ‘small business concern’ means a business 


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1 concern that meets the size standard for the primary 

2 industry in which such business concern, and the af3 filiates of such business concern, is engaged, as de4 termined by the Administrator in accordance with 

5 the North American Industry Classification Sys6 tem.’’. 

7 (c) SUNSET.—The amendments made by this section 

8 shall remain in effect until September 30, 2010. 

9 SEC. 506.—OFFICE OF INSPECTOR GENERAL. For 

10 an additional amount for ‘‘Treasury Office of Inspector 

11 General for Tax Administration’’, $7,000,000, to remain 

12 available until September 30, 2012, for oversight and 

13 audit of programs grants and activities funded under this 

14 title. 

15 TITLE VI—DEPARTMENT OF HOMELAND 

16 SECURITY 

17 DEPARTMENT OF HOMELAND SECURITY 

18 OFFICE OF THE UNDER SECRETARY FOR MANAGEMENT

19 For an additional amount for the ‘‘Office of the 

20 Under Secretary for Management’’, $198,000,000, to re21 main available until September 30, 2011, solely for plan22 ning, design, and construction costs, including site secu23 rity, information technology infrastructure, fixtures, and 

24 related costs to consolidate the Department of Homeland 

25 Security headquarters: Provided, That no later than 60 


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1 days after the date of enactment of this Act, the Secretary 

2 of Homeland Security, in consultation with the Adminis3 trator of General Services, shall submit to the Committees 

4 on Appropriations of the Senate and the House of Rep5 resentatives a plan for the expenditure of these funds. 

6 OFFICE OF INSPECTOR GENERAL

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

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

9 30, 2012, for oversight and audit of programs, grants, and 

10 projects funded under this title. 

11 U.S. CUSTOMS AND BORDER PROTECTION

12 SALARIES AND EXPENSES

13 For an additional amount for ‘‘Salaries and Ex14 penses’’, $198,000,000, to remain available until Sep15 tember 30, 2010, of which $100,800,000 shall be for the 

16 procurement and deployment of non-intrusive inspection 

17 systems to improve port security; and of which 

18 $97,200,000 shall be for procurement and deployment of 

19 tactical communications equipment and radios: Provided, 

20 That no later than 45 days after the date of enactment 

21 of this Act, the Secretary of Homeland Security shall sub22 mit to the Committees on Appropriations of the Senate 

23 and the House of Representatives a plan for expenditure 

24 of these funds. 


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1 BORDER SECURITY FENCING, INFRASTRUCTURE, AND

2 TECHNOLOGY

3 For an additional amount for ‘‘Border Security Fenc4 ing, Infrastructure, and Technology’’, $200,000,000, to 

5 remain available until September 30, 2010, for expedited 

6 development and deployment of border security technology 

7 on the Southwest border: Provided, That no later than 45 

8 days after the date of enactment of this Act, the Secretary 

9 of Homeland Security shall submit to the Committees on 

10 Appropriations of the Senate and the House of Represent11 atives a plan for expenditure of these funds. 

12 CONSTRUCTION

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

14 $800,000,000, to remain available until expended, solely 

15 for planning, management, design, alteration, and con16 struction of U.S. Customs and Border Protection owned 

17 land border ports of entry: Provided, That no later than 

18 45 days after the date of enactment of this Act, the Sec19 retary of Homeland Security shall submit to the Commit20 tees on Appropriations of the Senate and the House of 

21 Representatives a plan for expenditure of these funds. 

22 U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT

23 AUTOMATION MODERNIZATION

24 For an additional amount for ‘‘Automation Mod25 ernization’’, $27,800,000, to remain available until SepVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00109 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 tember 30, 2010, for the procurement and deployment of 

2 tactical communications equipment and radios: Provided, 

3 That no later than 45 days after the date of enactment 

4 of this Act, the Secretary of Homeland Security shall sub5 mit to the Committees on Appropriations of the Senate 

6 and the House of Representatives a plan for expenditure 

7 of these funds. 

8 TRANSPORTATION SECURITY ADMINISTRATION

9 AVIATION SECURITY

10 For an additional amount for ‘‘Aviation Security’’, 

11 $1,000,000,000, to remain available until September 30, 

12 2010, for procurement and installation of checked baggage 

13 explosives detection systems and checkpoint explosives de14 tection equipment: Provided, That no later than 45 days 

15 after the date of enactment of this Act, the Secretary of 

16 Homeland Security shall submit to the Committees on Ap17 propriations of the Senate and the House of Representa18 tives a plan for the expenditure of these funds. 

19 COAST GUARD

20 ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS

21 For an additional amount for ‘‘Acquisition, Construc22 tion, and Improvements’’, $450,000,000, to remain avail23 able until September 30, 2010, of which $195,000,000 

24 shall be for shore facilities and aids to navigation facilities; 

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1 ments due to materials and labor cost increases, and to 

2 repair, renovate, assess, or improve vessels: Provided, That 

3 amounts made available for the activities under this head4 ing shall be available for all necessary expenses related to 

5 the oversight and management of such activities: Provided 

6 further, That no later than 45 days after the date of enact7 ment of this Act, the Secretary of Homeland Security shall 

8 submit to the Committees on Appropriations of the Senate 

9 and the House of Representatives a plan for the expendi10 ture of these funds. 

11 ALTERATION OF BRIDGES

12 For an additional amount for ‘‘Alteration of 

13 Bridges’’, $240,400,000, to remain available until Sep14 tember 30, 2010, for alteration or removal of obstructive 

15 bridges, as authorized by section 6 of the Truman-Hobbs 

16 Act (33 U.S.C. 516): Provided, That no later than 45 days 

17 after the date of enactment of this Act, the Secretary of 

18 Homeland Security shall submit to the Committees on Ap19 propriations of the Senate and the House of Representa20 tives a plan for the expenditure of these funds. 

21 FEDERAL EMERGENCY MANAGEMENT AGENCY

22 MANAGEMENT AND ADMINISTRATION

23 For an additional amount for ‘‘Management and Ad24 ministration’’, $6,000,000 for the acquisition of commuVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00111 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 nications response vehicles to be deployed in response to 

2 a disaster or a national security event. 

3 STATE AND LOCAL PROGRAMS

4 For an additional amount for grants, $950,000,000, 

5 to be allocated as follows: 

6 (1) $100,000,000, to remain available until 

7 September 30, 2010, for Public Transportation Se8 curity Assistance, Railroad Security Assistance, and 

9 Systemwide Amtrak Security Upgrades under sec10 tions 1406, 1513, and 1514 of the Implementing 

11 Recommendations of the 9/11 Commission Act of 

12 2007 (Public Law 110–53; 6 U.S.C. 1135, 1163, 

13 and 1164). 

14 (2) $100,000,000, to remain available until 

15 September 30, 2010, for Port Security Grants in ac16 cordance with 46 U.S.C. 70107, notwithstanding 46 

17 U.S.C. 70107(c). 

18 (3) $250,000,000, to remain available until 

19 September 30, 2010, for upgrading, modifying, or 

20 constructing emergency operations centers under 

21 section 614 of the Robert T. Stafford Disaster Relief 

22 and Emergency Assistance Act, notwithstanding sec23 tion 614(c) of that Act or for upgrading, modifying, 

24 or constructing State and local fusion centers as deVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00112 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 fined by section 210A(j)(1) of the Homeland Secu2 rity Act of 2002 (6 U.S.C. 124h(j)(1)). 

3 (4) $500,000,000 for construction to upgrade 

4 or modify critical infrastructure, as defined in sec5 tion 1016(e) of the USA PATRIOT Act of 2001 (42 

6 U.S.C. 5195c(e)), to mitigate consequences related 

7 to potential damage from all-hazards: Provided, 

8 That funds in this paragraph shall remain available 

9 until September 30, 2011: Provided further, That 5 

10 percent shall be for program administration: Pro11 vided further, That no later than 60 days after the 

12 date of enactment of this Act, the Secretary of 

13 Homeland Security shall submit to the Committees 

14 on Appropriations of the Senate and the House of 

15 Representatives a plan for expenditure of these 

16 funds. 

17 FIREFIGHTER ASSISTANCE GRANTS

18 For an additional amount for competitive grants, 

19 $500,000,000, to remain available until September 30, 

20 2010, for modifying, upgrading, or constructing State and 

21 local fire stations: Provided, That up to 5 percent shall 

22 be for program administration: Provided further, That no 

23 grant shall exceed $15,000,000. 


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1 DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

2 Notwithstanding section 417(b) of the Robert T. 

3 Stafford Disaster Relief and Emergency Assistance Act, 

4 the amount of any such loan issued pursuant to this sec5 tion for major disasters occurring in calendar year 2008 

6 may exceed $5,000,000, and may be equal to not more 

7 than 50 percent of the annual operating budget of the 

8 local government in any case in which that local govern9 ment has suffered a loss of 25 percent or more in tax reve10 nues: Provided, That the cost of modifying such loans shall 

11 be as defined in section 502 of the Congressional Budget 

12 Act of 1974 (2 U.S.C. 661a). 

13 EMERGENCY FOOD AND SHELTER

14 For an additional amount to carry out the emergency 

15 food and shelter program pursuant to title III of the 

16 McKinney-Vento Homeless Assistance Act (42 U.S.C. 

17 11331 et seq.), $100,000,000: Provided, That total admin18 istrative costs shall not exceed 3.5 percent of the total 

19 amount made available under this heading. 

20 FEDERAL LAW ENFORCEMENT TRAINING CENTER

21 ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND

22 RELATED EXPENSES

23 For an additional amount for ‘‘Acquisition, Construc24 tion, Improvements, and Related Expenses’’, $15,000,000, 

25 to remain available until September 30, 2010, for security 


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1 systems and law enforcement upgrades for all Federal 

2 Law Enforcement Training Center facilities: Provided, 

3 That no later than 45 days after the date of enactment 

4 of this Act, the Secretary of Homeland Security shall sub5 mit to the Committees on Appropriations of the Senate 

6 and the House of Representatives a plan for the expendi7 ture of these funds. 

8 GENERAL PROVISIONS—THIS TITLE 

9 SEC. 601. Notwithstanding any other provision of 

10 law, the President shall establish an arbitration panel 

11 under the Federal Emergency Management Agency public 

12 assistance program to expedite the recovery efforts from 

13 Hurricanes Katrina, Rita, Gustav, and Ike within the Gulf 

14 Coast Region. The arbitration panel shall have sufficient 

15 authority regarding the award or denial of disputed public 

16 assistance applications for covered hurricane damage 

17 under section 403, 406, or 407 of the Robert T. Stafford 

18 Disaster Relief and Emergency Assistance Act (42 U.S.C. 

19 5170b, 5172, or 5173) for a project the total amount of 

20 which is more than $500,000. 

21 SEC. 602. The Administrator of the Federal Emer22 gency Management Agency may not prohibit or restrict 

23 the use of funds designated under the hazard mitigation 

24 grant program for damage caused by Hurricanes Katrina 

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1 ance under such program commenced work otherwise eligi2 ble for hazard mitigation grant program assistance under 

3 section 404 of the Robert T. Stafford Disaster Relief and 

4 Emergency Assistance Act (42 U.S.C. 5170c) without ap5 proval in writing from the Administrator. 

6 TITLE VII—INTERIOR, ENVIRONMENT, AND 

7 RELATED AGENCIES 

8 DEPARTMENT OF THE INTERIOR 

9 BUREAU OF LAND MANAGEMENT

10 MANAGEMENT OF LANDS AND RESOURCES

11 For an additional amount for ‘‘Management of Lands 

12 and Resources’’, $135,000,000, to remain available until 

13 September 30, 2010. 

14 CONSTRUCTION

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

16 $180,000,000, to remain available until September 30, 

17 2010. 

18 WILDLAND FIRE MANAGEMENT

19 For an additional amount for ‘‘Wildland Fire Man20 agement’’, $15,000,000, to remain available until Sep21 tember 30, 2010. 


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1 UNITED STATES FISH AND WILDLIFE SERVICE

2 RESOURCE MANAGEMENT

3 For an additional amount for ‘‘Resource Manage4 ment’’, $165,000,000, to remain available until September 

5 30, 2010. 

6 CONSTRUCTION

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

8 $110,000,000, to remain available until September 30, 

9 2010. 

10 NATIONAL PARK SERVICE

11 OPERATION OF THE NATIONAL PARK SYSTEM

12 For an additional amount for ‘‘Operation of the Na13 tional Park System’’, $158,000,000, to remain available 

14 until September 30, 2010. 

15 CONSTRUCTION

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

17 $589,000,000, to remain available until September 30, 

18 2010. 

19 UNITED STATES GEOLOGICAL SURVEY

20 SURVEYS, INVESTIGATIONS, AND RESEARCH

21 For an additional amount for ‘‘Surveys, Investiga22 tions, and Research’’, $135,000,000, to remain available 

23 until September 30, 2010. 


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1 BUREAU OF INDIAN AFFAIRS

2 OPERATION OF INDIAN PROGRAMS

3 For an additional amount for ‘‘Operation of Indian 

4 Programs’’, $40,000,000, to remain available until Sep5 tember 30, 2010, of which $20,000,000 shall be for the 

6 housing improvement program. 

7 CONSTRUCTION

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

9 $522,000,000, to remain available until September 30, 

10 2010. 

11 INDIAN GUARANTEED LOAN PROGRAM ACCOUNT

12 For an additional amount for ‘‘Indian Guaranteed 

13 Loan Program Account’’, $10,000,000, to remain avail14 able until September 30, 2010. 

15 DEPARTMENTAL OFFICES 

16 INSULAR AFFAIRS

17 ASSISTANCE TO TERRITORIES

18 For an additional amount for ‘‘Assistance to Terri19 tories’’, $62,000,000, to remain available until September 

20 30, 2010. 

21 OFFICE OF INSPECTOR GENERAL

22 SALARIES AND EXPENSES

23 For an additional amount for ‘‘Office of Inspector 

24 General’’, $7,600,000, to remain available until September 


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1 30, 2011, and an additional $7,400,000 for such purposes, 

2 to remain available until September 30, 2011. 

3 DEPARTMENT-WIDE PROGRAMS

4 CENTRAL HAZARDOUS MATERIALS FUND

5 For an additional amount for ‘‘Central Hazardous 

6 Materials Fund’’, $20,000,000, to remain available until 

7 September 30, 2010. 

8 ENVIROMENTAL PROTECTION AGENCY 

9 HAZARDOUS SUBSTANCE SUPERFUND

10 (INCLUDING TRANSFERS OF FUNDS)

11 For an additional amount for ‘‘Hazardous Substance 

12 Superfund’’, $600,000,000, to remain available until Sep13 tember 30, 2010, as a payment from general revenues to 

14 the Hazardous Substance Superfund, to carry out reme15 dial actions: Provided, That the Administrator may retain 

16 up to 2 percent of the funds appropriated herein for 

17 Superfund remedial actions for program oversight and 

18 support purposes, and may transfer those funds to other 

19 accounts as needed. 

20 LEAKING UNDERGROUND STORAGE TANK TRUST FUND

21 PROGRAM

22 For an additional amount for ‘‘Leaking Underground 

23 Storage Tank Trust Fund Program’’, $200,000,0000, to 

24 remain available until September 30, 2010, for cleanup 


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1 activities: Provided, That none of these funds shall be sub2 ject to cost share requirements. 

3 STATE AND TRIBAL ASSISTANCE GRANTS

4 (INCLUDING TRANSFERS OF FUNDS)

5 For an additional amount for ‘‘State and Tribal As6 sistance Grants’’, $6,400,000,000, to remain available 

7 until September 30, 2010, of which $4,000,000,000 shall 

8 be for making capitalization grants for the Clean Water 

9 State Revolving Funds under title VI of the Federal Water 

10 Pollution Control Act, as amended; of which 

11 $2,000,000,000 shall be for making capitalization grants 

12 for the Drinking Water State Revolving Fund under sec13 tion 1452 of the Safe Drinking Water Act, as amended; 

14 of which $100,000,000 shall be available for Brownfields 

15 remediation grants pursuant to section 104(k)(3) of the 

16 Comprehensive Environmental Response, Compensation 

17 and Liability Act of 1980, as amended; and of which 

18 $300,000,000 shall be for Diesel Emission Reduction Act 

19 grants pursuant to title VII, subtitle G of the Energy Pol20 icy Act of 2005, as amended: Provided, That notwith21 standing the priority ranking they would otherwise receive 

22 under each program, priority for funds appropriated here23 in for the Clean Water State Revolving Funds and Drink24 ing Water State Revolving Funds (Revolving Funds) shall 

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1 struction within 180 days of enactment of this Act: Pro2 vided further, That the Administrator of the Environ3 mental Protection Agency (Administrator) may reallocate 

4 funds appropriated herein for the Revolving Funds that 

5 are not under binding commitments to proceed to con6 struction within 180 days of enactment of this Act: Pro7 vided further, That notwithstanding any other provision of 

8 law, financial assistance provided from funds appropriated 

9 herein for the Revolving Funds may include additional 

10 subsidization, including forgiveness of principal and nega11 tive interest loans: Provided further, That not less than 

12 15 percent of the funds appropriated herein for the Re13 volving Funds shall be designated for green infrastructure, 

14 water efficiency improvements or other environmentally 

15 innovative projects: Provided further, That notwith16 standing the limitation on amounts specified in section 

17 518(c) of the Federal Water Pollution Control Act, up to 

18 a total of 1.5 percent of the funds appropriated herein 

19 for the Clean Water State Revolving Funds may be re20 served by the Administrator for tribal grants under section 

21 518(c) of such Act: Provided further, That section 1452(k) 

22 of the Safe Drinking Water Act shall not apply to amounts 

23 appropriated herein for the Drinking Water State Revolv24 ing Funds: Provided further, That the Administrator may 

25 exceed the 30 percent limitation on State grants for funds 


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1 appropriated herein for Diesel Emission Reduction Act 

2 grants if the Administrator determines such action will ex3 pedite allocation of funds: Provided further, That none of 

4 the funds appropriated herein shall be subject to cost 

5 share requirements: Provided further, That the Adminis6 trator may retain up to 0.25 percent of the funds appro7 priated herein for the Clean Water State Revolving Funds 

8 and Drinking Water State Revolving Funds and up to 1.5 

9 percent of the funds appropriated herein for the Diesel 

10 Emission Reduction Act grants program for program 

11 oversight and support purposes and may transfer those 

12 funds to other accounts as needed. 

13 DEPARTMENT OF AGRICULTURE 

14 FOREST SERVICE

15 CAPITAL IMPROVEMENT AND MAINTENANCE

16 For an additional amount for ‘‘Capital Improvement 

17 and Maintenance’’, $650,000,000, to remain available 

18 until September 30, 2010, which shall include remediation 

19 of abandoned mine sites and support costs necessary to 

20 carry out this work. 

21 WILDLAND FIRE MANAGEMENT

22 For an additional amount for ‘‘Wildland Fire Man23 agement’’, $485,000,000, to remain available until Sep24 tember 30, 2010, for hazardous fuels reduction and haz25 ard mitigation activities in areas at high risk of cataVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00122 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 strophic wildfire, of which $260,000,000 is available for 

2 work on State and private lands using all the authorities 

3 available to the Forest Service: Provided, That of the 

4 funds provided for State and private land fuels reduction 

5 activities, up to $50,000,000 may be used to make grants 

6 for the purpose of creating incentives for increased use 

7 of biomass from national forest lands. 

8 DEPARTMENT OF HEALTH AND HUMAN 

9 SERVICES 

10 INDIAN HEALTH SERVICE

11 INDIAN HEALTH SERVICES

12 For an additional amount for ‘‘Indian Health Serv13 ices’’, $135,000,000, to remain available until September 

14 30, 2010, of which $50,000,000 is for contract health 

15 services; and of which $85,000,000 is for health informa16 tion technology: Provided, That the amount made avail17 able for health information technology activities may be 

18 used for both telehealth services development and related 

19 infrastructure requirements that are typically funded 

20 through the ‘‘Indian Health Facilities’’ account: Provided 

21 further, That notwithstanding any other provision of law, 

22 health information technology funds provided within this 

23 title shall be allocated at the discretion of the Director 

24 of the Indian Health Service. 


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1 INDIAN HEALTH FACILITIES

2 For an additional amount for ‘‘Indian Health Facili3 ties’’, $410,000,000, to remain available until September 

4 30, 2010: Provided, That for the purposes of this Act, 

5 spending caps included within the annual appropriation 

6 for ‘‘Indian Health Facilities’’ for the purchase of medical 

7 equipment shall not apply. 

8 SMITHSONIAN INSTITUTION 

9 FACILITIES CAPITAL

10 For an additional amount for ‘‘Facilities Capital’’, 

11 $75,000,000, to remain available until September 30, 

12 2010. 

13 GENERAL PROVISIONS—THIS TITLE 

14 SEC. 701. (a) Within 30 days of enactment of this 

15 Act, each agency receiving funds under this title shall sub16 mit a general plan for the expenditure of such funds to 

17 the House and Senate Committees on Appropriations. 

18 (b) Within 90 days of enactment of this Act, each 

19 agency receiving funds under this title shall submit to the 

20 Committees a report containing detailed project level in21 formation associated with the general plan submitted pur22 suant to subsection (a). 

23 SEC. 702. In carrying out the work for which funds 

24 in this title are being made available, the Secretary of the 

25 Interior and the Secretary of Agriculture may utilize the 


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1 Public Lands Corps, Youth Conservation Corps, Job 

2 Corps and other related partnerships with Federal, State, 

3 local, tribal or non-profit groups that serve young adults. 

4 TITLE VIII—DEPARTMENTS OF LABOR, 

5 HEALTH AND HUMAN SERVICES, AND EDU6 CATION, AND RELATED AGENCIES 

7 DEPARTMENT OF LABOR 

8 EMPLOYMENT AND TRAINING ADMINISTRATION

9 TRAINING AND EMPLOYMENT SERVICES

10 For an additional amount for ‘‘Training and Employ11 ment Services’’ for activities authorized by the Workforce 

12 Investment Act of 1998 (‘‘WIA’’), $3,250,000,000, which 

13 shall be available on the date of enactment of this Act, 

14 as follows: 

15 (1) $500,000,000 for adult employment and 

16 training activities, including supportive services and 

17 needs-related payments described in section 

18 134(e)(2) and (3) of the WIA: Provided, That a pri19 ority use of these funds shall be services to individ20 uals described in 134(d)(4)(E) of the WIA; 

21 (2) $1,200,000,000 for grants to the States for 

22 youth activities, including summer employment for 

23 youth: Provided, That no portion of such funds shall 

24 be reserved to carry out section 127(b)(1)(A) of the 

25 WIA: Provided further, That for purposes of section 


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1 127(b)(1)(C)(iv) of the WIA, funds available for 

2 youth activities shall be allotted as if the total 

3 amount available for youth activities in the fiscal 

4 year does not exceed $1,000,000,000: Provided fur5 ther, That, with respect to the youth activities pro6 vided with such funds, section 101(13)(A) of the 

7 WIA shall be applied by substituting ‘‘age 24’’ for 

8 ‘‘age 21’’: Provided further, That the work readiness 

9 performance indicator described in section 

10 136(b)(2)(A)(ii)(I) of the WIA shall be the only 

11 measure of performance used to assess the effective12 ness of youth activities provided with such funds; 

13 (3) $1,000,000,000 for grants to the States for 

14 dislocated worker employment and training activi15 ties; 

16 (4) $200,000,000 for national emergency 

17 grants; 

18 (5) $250,000,000 under the dislocated worker 

19 national reserve for a program of competitive grants 

20 for worker training in high growth and emerging in21 dustry sectors and assistance under 132(b)(2)(A) of 

22 the WIA: Provided, That the Secretary of Labor 

23 shall give priority when awarding such grants to 

24 projects that prepare workers for careers in energy 

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1 tion 171(e)(1)(B) of the WIA and for careers in the 

2 health care sector; and 

3 (6) $100,000,000 for YouthBuild activities as 

4 described in section 173A of the WIA: Provided, 

5 That for program years 2008 and 2009, the 

6 YouthBuild program may serve an individual who 

7 has dropped out of high school and re-enrolled in an 

8 alternative school, if that re-enrollment is part of a 

9 sequential service strategy: 

10 Provided, That funds made available in this 

11 paragraph shall remain available through June 30, 

12 2010: Provided further, That a local board may 

13 award a contract to an institution of higher edu14 cation if the local board determines that it would fa15 cilitate the training of multiple individuals in high16 demand occupations, if such contract does not limit 

17 customer choice. 

18 COMMUNITY SERVICE EMPLOYMENT FOR OLDER

19 AMERICANS

20 For an additional amount for ‘‘Community Service 

21 Employment for Older Americans’’ for carrying out title 

22 V of the Older Americans Act of 1965, $120,000,000, 

23 which shall be available on the date of enactment of this 

24 Act and shall remain available through June 30, 2010: 

25 Provided, That funds shall be allotted within 30 days of 


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1 such enactment to current grantees in proportion to their 

2 allotment in program year 2008: Provided further, That 

3 funds made available under this heading in this Act may, 

4 in accordance with section 517(c) of the Older Americans 

5 Act of 1965, be recaptured and reobligated. 

6 STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT

7 SERVICE OPERATIONS

8 For an additional amount for ‘‘State Unemployment 

9 Insurance and Employment Service Operations’’ for 

10 grants to States in accordance with section 6 of the Wag11 ner-Peyser Act, $400,000,000, which may be expended 

12 from the Employment Security Administration account in 

13 the Unemployment Trust Fund: Provided, That such 

14 funds shall be available on the date of enactment of this 

15 Act and remain available to the States through September 

16 30, 2010: Provided further, That $250,000,000 of such 

17 funds shall be used by States for reemployment services 

18 for unemployment insurance claimants (including the inte19 grated Employment Service and Unemployment Insurance 

20 information technology required to identify and serve the 

21 needs of such claimants): Provided further, That the Sec22 retary of Labor shall establish planning and reporting pro23 cedures necessary to provide oversight of funds used for 

24 reemployment services. 


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1 DEPARTMENTAL MANAGEMENT

2 OFFICE OF JOB CORPS

3 For an additional amount for ‘‘Office of Job Corps’’ 

4 for construction, alteration and repairs of buildings and 

5 other facilities, $160,000,000, which shall remain avail6 able through June 30, 2010: Provided, That the Secretary 

7 of Labor may transfer up to 15 percent of such funds to 

8 meet the operational needs of Job Corps Centers, which 

9 may include training for careers in the energy efficiency, 

10 renewable energy, and environmental protection indus11 tries: Provided further, That not later than 90 days after 

12 the date of enactment of this Act, the Secretary shall pro13 vide to the Committee on Appropriations of the House of 

14 Representatives and the Senate an operating plan describ15 ing the planned uses of funds available in this paragraph. 

16 OFFICE OF INSPECTOR GENERAL

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

18 General’’, $3,000,000, which shall remain available 

19 through September 30, 2011, for salaries and expenses 

20 necessary for oversight and audit of programs, grants, and 

21 projects funded in this Act and administered by the De22 partment of 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 

8 be for necessary expenses related to leasing and renovating 

9 a 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 DisVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00130 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ease Control and Prevention may award a single contract 

2 or related contracts for development and construction of 

3 facilities that collectively include the full scope of the 

4 project: Provided further, That the solicitation and con5 tract shall contain the clause ‘‘availability of funds’’ found 

6 at 48 CFR 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 avail11 able through September 30, 2010, for shared instrumenta12 tion and other capital research equipment. 

13 OFFICE OF THE DIRECTOR

14 (INCLUDING TRANSFER OF FUNDS)

15 For an additional amount for ‘‘Office of the Direc16 tor’’, $2,700,000,000, which shall be available through 

17 September 30, 2010: Provided, That $1,350,000,000 shall 

18 be transferred to the Institutes and Centers of the Na19 tional Institutes of Health and to the Common Fund es20 tablished 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). 

11 The additional amount available for ‘Office of the Di12 rector’ in the previous sentence shall be increased by 

13 $6,500,000,000: Provided, That a total of $7,850,000,000 

14 shall be transferred pursuant to such sentence: Provided 

15 further, That any amounts in this sentence shall be des16 ignated as an emergency requirement and necessary to 

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

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

19 S. Con. Res. 70 (110th Congress), the concurrent resolu20 tions on the budget for fiscal years 2008 and 2009. 

21 BUILDINGS AND FACILITIES

22 For an additional amount for ‘‘Buildings and Facili23 ties’’, $500,000,000, which shall be available through Sep24 tember 30, 2010, to fund high-priority repair, construction 

25 and improvement projects for National Institutes of 


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1 Health facilities on the Bethesda, Maryland campus and 

2 other 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 Secu9 rity Act, and section 1013 of the Medicare Prescription 

10 Drug, Improvement, and Modernization Act of 2003, 

11 $700,000,000 for comparative clinical effectiveness re12 search, which shall remain available through September 

13 30, 2010: Provided, That of the amount appropriated in 

14 this paragraph, $400,000,000 shall be transferred to the 

15 Office of the Director of the National Institutes of Health 

16 (‘‘Office of the Director’’) to conduct or support compara17 tive clinical effectiveness research under section 301 and 

18 title IV of the Public Health Service Act: Provided further, 

19 That funds transferred to the Office of the Director may 

20 be transferred to the Institutes and Centers of the Na21 tional Institutes of Health and to the Common Fund es22 tablished under section 402A(c)(1) of the Public Health 

23 Service Act: Provided further, That this transfer authority 

24 is in addition to any other transfer authority available to 

25 the National Institutes of Health: Provided further, That 


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1 within the amount available in this paragraph for the 

2 Agency for Healthcare Research and Quality, not more 

3 than 1 percent shall be made available for additional full4 time equivalents. 

5 In addition, $400,000,000 shall be available for com6 parative clinical effectiveness research to be allocated at 

7 the discretion of the Secretary of Health and Human 

8 Services (‘‘Secretary’’) and shall remain available through 

9 September 30, 2010: Provided, That the funding appro10 priated in this paragraph shall be used to accelerate the 

11 development and dissemination of research assessing the 

12 comparative clinical effectiveness of health care treat13 ments and strategies, including through efforts that: (1) 

14 conduct, support, or synthesize research that compares the 

15 clinical outcomes, effectiveness, and appropriateness of 

16 items, services, and procedures that are used to prevent, 

17 diagnose, or treat diseases, disorders, and other health 

18 conditions and (2) encourage the development and use of 

19 clinical registries, clinical data networks, and other forms 

20 of electronic health data that can be used to generate or 

21 obtain outcomes data: Provided further, That the Sec22 retary shall enter into a contract with the Institute of 

23 Medicine, for which no more than $1,500,000 shall be 

24 made available from funds provided in this paragraph, to 

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1 retary by not later than June 30, 2009 that includes rec2 ommendations on the national priorities for comparative 

3 clinical effectiveness research to be conducted or sup4 ported with the funds provided in this paragraph and that 

5 considers input from stakeholders: Provided further, That 

6 the Secretary shall consider any recommendations of the 

7 Federal Coordinating Council for Comparative Clinical Ef8 fectiveness Research established by section 802 of this Act 

9 and any recommendations included in the Institute of 

10 Medicine report pursuant to the preceding proviso in des11 ignating activities to receive funds provided in this para12 graph and may make grants and contracts with appro13 priate entities, which may include agencies within the De14 partment of Health and Human Services and other gov15 ernmental agencies, as well as private sector entities, that 

16 have demonstrated experience and capacity to achieve the 

17 goals of comparative clinical effectiveness research: Pro18 vided further, That the Secretary shall publish information 

19 on grants and contracts awarded with the funds provided 

20 under this heading within a reasonable time of the obliga21 tion of funds for such grants and contracts and shall dis22 seminate research findings from such grants and contracts 

23 to clinicians, patients, and the general public, as appro24 priate: Provided further, That, to the extent feasible, the 

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1 vided by this paragraph offer an opportunity for public 

2 comment on the research: Provided further, That the Sec3 retary shall provide the Committees on Appropriations of 

4 the House of Representatives and the Senate, the Com5 mittee on Energy and Commerce and the Committee on 

6 Ways and Means of the House of Representatives, and the 

7 Committee on Health, Education, Labor, and Pensions 

8 and the Committee on Finance of the Senate with an an9 nual report on the research conducted or supported 

10 through the funds provided under this heading. 

11 ADMINISTRATION FOR CHILDREN AND FAMILIES

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’’ for car16 rying out the Child Care and Development Block Grant 

17 Act of 1990, $2,000,000,000, which shall remain available 

18 through September 30, 2010: Provided, That funds pro19 vided under this heading shall be used to supplement, not 

20 supplant State general revenue funds for child care assist21 ance for low-income families: Provided further, That, in 

22 addition to the amounts required to be reserved by the 

23 States under section 658G of such Act, $255,186,000 

24 shall be reserved by the States for activities authorized 


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1 under section 658G, of which $93,587,000 shall be for ac2 tivities that improve the quality of infant and toddler care. 

3 SOCIAL SERVICES BLOCK GRANT

4 For an additional amount for ‘‘Social Services Block 

5 Grant,’’ $400,000,000: Provided, That notwithstanding 

6 section 2003 of the Social Security Act, funds shall be al7 located to States on the basis of unemployment: Provided 

8 further, That these funds shall be obligated to States with9 in 60 calendar days from the date they become available 

10 for obligation. 

11 CHILDREN AND FAMILIES SERVICES PROGRAMS

12 For an additional amount for ‘‘Children and Families 

13 Services Programs’’ for carrying out activities under the 

14 Head Start Act, $500,000,000, which shall remain avail15 able through September 30, 2010. In addition, 

16 $550,000,000, which shall remain available through Sep17 tember 30, 2010, is hereby appropriated for expansion of 

18 Early Head Start programs, as described in section 645A 

19 of such Act: Provided, That of the funds provided in this 

20 sentence, up to 10 percent shall be available for the provi21 sion of training and technical assistance to such programs 

22 consistent with section 645A(g)(2) of such Act, and up 

23 to 3 percent shall be available for monitoring the operation 

24 of such programs consistent with section 641A of such 

25 Act. 


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1 For an additional amount for ‘‘Children and Families 

2 Services Programs’’ for carrying out activities under sec3 tions 674 through 679 of the Community Services Block 

4 Grant Act, $200,000,000, which shall remain available 

5 through September 30, 2010: Provided, That of the funds 

6 provided under this paragraph, no part shall be subject 

7 to paragraph (3) of section 674(b) of such Act: Provided 

8 further, That not less than 5 percent of the funds allotted 

9 to a State from the appropriation under this paragraph 

10 shall be used under section 675C(b)(1) for benefits enroll11 ment coordination activities relating to the identification 

12 and enrollment of eligible individuals and families in Fed13 eral, State and local benefit programs. 

14 ADMINISTRATION ON AGING

15 AGING SERVICES PROGRAMS

16 For an additional amount for ‘‘Aging Services Pro17 grams,’’ $100,000,000, of which $67,000,000 shall be for 

18 Congregate Nutrition Services and $33,000,000 shall be 

19 for Home-Delivered Nutrition Services: Provided, That 

20 these funds shall remain available through September 30, 

21 2010. 


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1 OFFICE OF THE SECRETARY

2 OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH

3 INFORMATION TECHNOLOGY

4 (INCLUDING TRANSFER OF FUNDS)

5 For an additional amount for ‘‘Office of the National 

6 Coordinator for Health Information Technology’’, 

7 $3,000,000,000, to carry out title XIII of this Act which 

8 shall be available until expended: Provided, That of this 

9 amount, the Secretary of Health and Human Services 

10 shall transfer $20,000,000 to the Director of the National 

11 Institute of Standards and Technology in the Department 

12 of Commerce for continued work on advancing health care 

13 information enterprise integration through activities such 

14 as technical standards analysis and establishment of con15 formance testing infrastructure so long as such activities 

16 are coordinated with the Office of the National Coordi17 nator for Health Information Technology: Provided fur18 ther, That funds available under this heading shall become 

19 available for obligation only upon submission of an annual 

20 operating plan by the Secretary to the Committees on Ap21 propriations of the House of Representatives and the Sen22 ate: Provided further, That the Secretary shall provide to 

23 the Committees on Appropriations of the House of Rep24 resentatives and the Senate a report on the actual obliga25 tions, expenditures, and unobligated balances for each 


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1 major set of activities not later than November 1, 2009 

2 and every 6 months thereafter as long as funding under 

3 this heading is available for obligation or expenditure. 

4 OFFICE OF THE INSPECTOR GENERAL

5 For an additional amount for the Office of the In6 spector General, $4,000,000 which shall remain available 

7 until September 30, 2012, and an additional $15,000,000 

8 for such purposes, to remain available until September 30, 

9 2012. 

10 DEPARTMENT OF EDUCATION 

11 EDUCATION FOR THE DISADVANTAGED

12 For an additional amount for carrying out title I of 

13 the Elementary and Secondary Education Act of 1965, 

14 $12,400,000,000, which shall be available through Sep15 tember 30, 2010: Provided, That $5,500,000,000 shall be 

16 for targeted grants under section 1125, $5,500,000,000 

17 shall be for education finance incentive grants under sec18 tion 1125A, and $1,400,000,000 shall be for school im19 provement grants under section 1003(g): Provided further, 

20 That each local educational agency receiving funds avail21 able under this paragraph for sections 1125 and 1125A 

22 shall use not less than 15 percent of such funds for activi23 ties serving children who are eligible pursuant to section 

24 1115(b)(1)(A)(ii) and programs in section 1112(b)(1)(K): 

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1 ceiving funds available under this paragraph shall be re2 quired to file with the State educational agency, no later 

3 than December 1, 2009, a school-by-school listing of per4 pupil educational expenditures from State and local 

5 sources during the 2008–2009 academic year. 

6 SCHOOL IMPROVEMENT PROGRAMS

7 For an additional amount for ‘‘School Improvement 

8 Programs,’’ $1,070,000,000, which shall be available 

9 through September 30, 2010, for carrying out activities 

10 authorized by part D of title II of the Elementary and 

11 Secondary Education Act of 1965, and subtitle B of title 

12 VII of the McKinney-Vento Homeless Assistance Act 

13 (‘‘McKinney-Vento’’): Provided, That the Secretary shall 

14 allot $70,000,000 for grants under McKinney-Vento to 

15 each State in proportion to the number of homeless stu16 dents identified by the State during the 2007–2008 school 

17 year relative to the number of such children identified na18 tionally during that school year: Provided further, That 

19 State educational agencies shall subgrant the McKinney20 Vento funds to local educational agencies on a competitive 

21 basis or according to a formula based on the number of 

22 homeless students identified by the local educational agen23 cies in the State: Provided further, That the Secretary 

24 shall distribute the McKinney-Vento funds to the States 

25 not later than 60 days after the date of the enactment 


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1 of this Act: Provided further, That each State shall 

2 subgrant the McKinney-Vento funds to local educational 

3 agencies not later than 120 days after receiving its grant 

4 from the Secretary. 

5 SPECIAL EDUCATION

6 For an additional amount for ‘‘Special Education’’ 

7 for carrying out parts B and C of the Individuals with 

8 Disabilities Education Act (‘‘IDEA’’), $13,500,000,000, 

9 which shall remain available through September 30, 2010: 

10 Provided, That if every State, as defined by section 

11 602(31) of the IDEA, reaches its maximum allocation 

12 under section 611(d)(3)(B)(iii) of the IDEA, and there 

13 are remaining funds, such funds shall be proportionally 

14 allocated to each State subject to the maximum amounts 

15 contained in section 611(a)(2) of the IDEA: Provided fur16 ther, That by July 1, 2009, the Secretary of Education 

17 shall reserve the amount needed for grants under section 

18 643(e) of the IDEA, with any remaining funds to be allo19 cated in accordance with section 643(c) of the IDEA: Pro20 vided further, That the amount for section 611(b)(2) of 

21 the IDEA shall be equal to the lesser of the amount avail22 able for that activity during fiscal year 2008, increased 

23 by the amount of inflation as specified in section 

24 619(d)(2)(B), or the percentage increase in the funds ap25 propriated under section 611(i): Provided further, That 


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1 each local educational agency receiving funds available 

2 under this paragraph for part B shall use not less than 

3 15 percent for special education and related services to 

4 children described in section 619(a) of the IDEA. 

5 REHABILITATION SERVICES AND DISABILITY RESEARCH

6 For an additional amount for ‘‘Rehabilitation Serv7 ices and Disability Research’’ for providing grants to 

8 States to carry out the Vocational Rehabilitation Services 

9 program under part B of title I and parts B and C of 

10 chapter 1 and chapter 2 of title VII of the Rehabilitation 

11 Act of 1973, $610,000,000, which shall remain available 

12 through September 30, 2010: Provided, That 

13 $500,000,000 shall be available for part B of title I of 

14 the Rehabilitation Act: Provided further, That funds pro15 vided herein shall not be considered in determining the 

16 amount required to be appropriated under section 

17 100(b)(1) of the Rehabilitation Act of 1973 in any fiscal 

18 year: Provided further, That, notwithstanding section 

19 7(14)(A), the Federal share of the costs of vocational re20 habilitation services provided with the funds provided 

21 herein shall be 100 percent. 

22 STUDENT FINANCIAL ASSISTANCE

23 For an additional amount for ‘‘Student Financial As24 sistance’’ to carry out subpart 1 of part A of title IV of 

25 the Higher Education Act of 1965, $13,869,000,000: ProVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00143 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 vided, That such funds shall be used to increase the max2 imum Pell Grant by $281 for award year 2009–2010, to 

3 increase the maximum Pell Grant by $400 for the award 

4 year 2010–2011, and to reduce or eliminate the Pell Grant 

5 shortfall: Provided further, That these funds shall remain 

6 available through September 30, 2011. 

7 For an additional amount for ‘‘Student Financial As8 sistance’’ to carry out part E of title IV of the Higher 

9 Education Act of 1965, $61,000,000: Provided, That 

10 these funds shall remain available through September 30, 

11 2010. 

12 HIGHER EDUCATION

13 For an additional amount for ‘‘Higher Education’’ 

14 for carrying out activities under part A of title II of the 

15 Higher Education Act of 1965, $50,000,000: Provided, 

16 That these funds shall remain available through Sep17 tember 30, 2010. 

18 DEPARTMENTAL MANAGEMENT

19 OFFICE OF THE INSPECTOR GENERAL

20 For an additional amount for the ‘‘Office of the In21 spector General’’, $4,000,000, which shall remain avail22 able through September 30, 2012, for salaries and ex23 penses necessary for oversight and audit of programs, 

24 grants, and projects funded in this Act and administered 

25 by the Department of Education and an additional 


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1 $10,000,000 for such purposes, to remain available until 

2 September 30, 2012. 

3 RELATED AGENCIES 

4 CORPORATION FOR NATIONAL AND 

5 COMMUNITY SERVICE 

6 OPERATING EXPENSES

7 (INCLUDING TRANSFER OF FUNDS)

8 For an additional amount for ‘‘Operating Expenses’’ 

9 to carry out the Domestic Volunteer Service Act of 1973 

10 (‘‘1973 Act’’) and the National and Community Service 

11 Act of 1990 (‘‘1990 Act’’), $160,000,000, to remain avail12 able through September 30, 2010: Provided, That funds 

13 made available in this paragraph may be used to provide 

14 adjustments to awards under subtitle C of title I of the 

15 1990 Act made prior to September 30, 2010 for which 

16 the Chief Executive Officer of the Corporation for Na17 tional and Community Service (‘‘CEO’’) determines that 

18 a waiver of the Federal share limitation is warranted 

19 under section 2521.70 of title 45 of the Code of Federal 

20 Regulations: Provided further, That of the amount made 

21 available in this paragraph, not less than $6,000,000 shall 

22 be transferred to ‘‘Salaries and Expenses’’ for necessary 

23 expenses relating to information technology upgrades: 

24 Provided further, That of the amount provided in this 

25 paragraph, $10,000,000 shall be available for additional 


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1 members in the Civilian Community Corps authorized 

2 under subtitle E of title I of the 1990 Act: Provided fur3 ther, That of the amount provided in this paragraph, 

4 $1,000,000 shall be made available for a one-time supple5 ment grant to State commissions on national and commu6 nity service under section 126(a) of the 1990 Act without 

7 regard to the limitation on Federal share under section 

8 126(a)(2) of the 1990 Act: Provided further, That of the 

9 amount made available in this paragraph, not less than 

10 $13,000,000 shall be for research activities authorized 

11 under subtitle H of title I of the 1990 Act: Provided fur12 ther, That of the amount made available in this paragraph, 

13 not less than $65,000,000 shall be for programs under 

14 title I, part A of the 1973 Act: Provided further, That 

15 funds provided in the previous proviso shall not be made 

16 available in connection with cost-share agreements author17 ized under section 192A(g)(10) of the 1990 Act: Provided 

18 further, That of the funds available under this heading, 

19 up to 20 percent of funds allocated to grants authorized 

20 under section 124(b) of title I, subtitle C of the 1990 Act 

21 may be used to administer, reimburse, or support any na22 tional service program under section 129(d)(2) of the 

23 1990 Act: Provided further, That, except as provided here24 in and in addition to requirements identified herein, funds 

25 provided in this paragraph shall be subject to the terms 


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1 and conditions under which funds were appropriated in 

2 fiscal year 2008: Provided further, That the CEO shall 

3 provide the Committees on Appropriations of the House 

4 of Representatives and the Senate a fiscal year 2009 oper5 ating plan for the funds appropriated in this paragraph 

6 prior to making any Federal obligations of such funds in 

7 fiscal year 2009, but not later than 90 days after the date 

8 of enactment of this Act, and a fiscal year 2010 operating 

9 plan for such funds prior to making any Federal obliga10 tions of such funds in fiscal year 2010, but not later than 

11 November 1, 2009, that detail the allocation of resources 

12 and the increased number of members supported by the 

13 AmeriCorps programs: Provided further, That the CEO 

14 shall provide to the Committees on Appropriations of the 

15 House of Representatives and the Senate a report on the 

16 actual obligations, expenditures, and unobligated balances 

17 for each activity funded under this heading not later than 

18 November 1, 2009, and every 6 months thereafter as long 

19 as funding provided under this heading is available for ob20 ligation or expenditure. 

21 OFFICE OF THE INSPECTOR GENERAL

22 For an additional amount for the Office of the In23 spector General, $1,000,000, which shall remain available 

24 until September 30, 2011. 


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1 NATIONAL SERVICE TRUST

2 (INCLUDING TRANSFER OF FUNDS)

3 For an additional amount for ‘‘National Service 

4 Trust’’ established under subtitle D of title I of the Na5 tional and Community Service Act of 1990 (‘‘1990 Act’’), 

6 $40,000,000, which shall remain available until expended: 

7 Provided, That the Corporation for National and Commu8 nity Service may transfer additional funds from the 

9 amount provided within ‘‘Operating Expenses’’ for grants 

10 made under subtitle C of title I of the 1990 Act to this 

11 appropriation upon determination that such transfer is 

12 necessary to support the activities of national service par13 ticipants and after notice is transmitted to the Committees 

14 on Appropriations of the House of Representatives and the 

15 Senate: Provided further,the amount appropriated for or 

16 transferred to the National Service Trust may be invested 

17 under section 145(b) of the 1990 Act without regard to 

18 the requirement to apportion funds under 31 U.S.C. 

19 1513(b). 

20 SOCIAL SECURITY ADMINISTRATION 

21 LIMITATION ON ADMINISTRATIVE EXPENSES

22 (INCLUDING TRANSFER OF FUNDS)

23 For an additional amount for ‘‘Limitation on Admin24 istrative Expenses’’, $890,000,000 shall be available as 

25 follows: 


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1 (1) $750,000,000 shall remain available until 

2 expended for necessary expenses of the replacement 

3 of the National Computer Center and the informa4 tion technology costs associated with such Center: 

5 Provided, That the Commissioner of Social Security 

6 shall notify the Committees on Appropriations of the 

7 House of Representatives and the Senate not later 

8 than 10 days prior to each public notice soliciting 

9 bids related to site selection and construction: Pro10 vided further, That unobligated balances of funds 

11 not needed for this purpose may be used as de12 scribed in subparagraph (2); and 

13 (2) $140,000,000 shall be available through 

14 September 30, 2010 for information technology ac15 quisitions and research, which may include research 

16 and activities to facilitate the adoption of electronic 

17 medical records in disability claims and the transfer 

18 of funds to ‘‘Supplemental Security Income’’ to 

19 carry out activities under section 1110 of the Social 

20 Security Act: Provided further, That not later than 

21 10 days prior to the obligation of such funds, the 

22 Commissioner shall provide to the Committees on 

23 Appropriations of the House of Representatives and 

24 the Senate an operating plan describing the planned 

25 uses of such funds. 


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1 OFFICE OF INSPECTOR GENERAL

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

3 General’’, $3,000,000, which shall remain available 

4 through September 30, 2012, for salaries and expenses 

5 necessary for oversight and audit of programs, projects, 

6 and activities funded in this Act and administered by the 

7 Social Security Administration. 

8 GENERAL PROVISIONS—THIS TITLE 

9 SEC. 801. REPORT ON THE IMPACT OF PAST AND

10 FUTURE MINIMUM WAGE INCREASES. (a) IN GENERAL.— 

11 Section 8104 of the U.S. Troop Readiness, Veterans’ 

12 Care, Katrina Recovery, and Iraq Accountability Appro13 priations Act, 2007 (Public Law 110–28; 121 Stat. 189) 

14 is amended to read as follows: 

15 ‘‘SEC. 8104. REPORT ON THE IMPACT OF PAST AND FUTURE 

16 MINIMUM WAGE INCREASES. 

17 ‘‘(a) STUDY.—Beginning on the date that is 60 days 

18 after the date of enactment of this Act, and every year 

19 thereafter until the minimum wage in the respective terri20 tory is $7.25 per hour, the Government Accountability Of21 fice shall conduct a study to— 

22 ‘‘(1) assess the impact of the minimum wage 

23 increases that occurred in American Samoa and the 

24 Commonwealth of the Northern Mariana Islands in 

25 2007 and 2008, as required under Public Law 110– 


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1 28, on the rates of employment and the living stand2 ards of workers, with full consideration of the other 

3 factors that impact rates of employment and the liv4 ing standards of workers such as inflation in the 

5 cost of food, energy, and other commodities; and 

6 ‘‘(2) estimate the impact of any further wage 

7 increases on rates of employment and the living 

8 standards of workers in American Samoa and the 

9 Commonwealth of the Northern Mariana Islands, 

10 with full consideration of the other factors that may 

11 impact the rates of employment and the living 

12 standards of workers, including assessing how the 

13 profitability of major private sector firms may be 

14 impacted by wage increases in comparison to other 

15 factors such as energy costs and the value of tax 

16 benefits. 

17 ‘‘(b) REPORT.—No earlier than March 15, 2009, and 

18 not later than April 15, 2009, the Government Account19 ability Office shall transmit its first report to Congress 

20 concerning the findings of the study required under sub21 section (a). The Government Accountability Office shall 

22 transmit any subsequent reports to Congress concerning 

23 the findings of a study required by subsection (a) between 

24 March 15 and April 15 of each year. 


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1 ‘‘(c) ECONOMIC INFORMATION.—To provide suffi2 cient economic data for the conduct of the study under 

3 subsection (a)— 

4 ‘‘(1) the Department of Labor shall include and 

5 separately report on American Samoa and the Com6 monwealth of the Northern Mariana Islands in its 

7 household surveys and establishment surveys; 

8 ‘‘(2) the Bureau of Economic Analysis of the 

9 Department of Commerce shall include and sepa10 rately report on American Samoa and the Common11 wealth of the Northern Mariana Islands in its gross 

12 domestic product data; and 

13 ‘‘(3) the Bureau of the Census of the Depart14 ment of Commerce shall include and separately re15 port on American Samoa and the Commonwealth of 

16 the Northern Mariana Islands in its population esti17 mates and demographic profiles from the American 

18 Community Survey, 

19 with the same regularity and to the same extent as the 

20 Department or each Bureau collects and reports such data 

21 for the 50 States. In the event that the inclusion of Amer22 ican Samoa and the Commonwealth of the Northern Mar23 iana Islands in such surveys and data compilations re24 quires time to structure and implement, the Department 

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1 reau of the Census (as the case may be) shall in the in2 terim annually report the best available data that can fea3 sibly be secured with respect to such territories. Such in4 terim reports shall describe the steps the Department or 

5 the respective Bureau will take to improve future data col6 lection in the territories to achieve comparability with the 

7 data collected in the United States. The Department of 

8 Labor, the Bureau of Economic Analysis, and the Bureau 

9 of the Census, together with the Department of the Inte10 rior, shall coordinate their efforts to achieve such improve11 ments.’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall take effect on the date of enactment of 

14 this Act. 

15 SEC. 802. FEDERAL COORDINATING COUNCIL FOR

16 COMPARATIVE CLINICAL EFFECTIVENESS RESEARCH. (a) 

17 ESTABLISHMENT.—There is hereby established a Federal 

18 Coordinating Council for Comparative Clinical Effective19 ness Research (in this section referred to as the ‘‘Coun20 cil’’). 

21 (b) PURPOSE; DUTIES.—The Council shall— 

22 (1) assist the offices and agencies of the Fed23 eral Government, including the Departments of 

24 Health and Human Services, Veterans Affairs, and 

25 Defense, and other Federal departments or agencies, 


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1 to coordinate the conduct or support of comparative 

2 clinical effectiveness and related health services re3 search; and 

4 (2) advise the President and Congress on— 

5 (A) strategies with respect to the infra6 structure needs of comparative clinical effective7 ness research within the Federal Government; 

8 (B) appropriate organizational expendi9 tures for comparative clinical effectiveness re10 search by relevant Federal departments and 

11 agencies; and 

12 (C) opportunities to assure optimum co13 ordination of comparative clinical effectiveness 

14 and related health services research conducted 

15 or supported by relevant Federal departments 

16 and agencies, with the goal of reducing duplica17 tive efforts and encouraging coordinated and 

18 complementary use of resources. 

19 (c) MEMBERSHIP.— 

20 (1) NUMBER AND APPOINTMENT.—The Council 

21 shall be composed of not more than 15 members, all 

22 of whom are senior Federal officers or employees 

23 with responsibility for health-related programs, ap24 pointed by the President, acting through the Sec25 retary of Health and Human Services (in this secVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00154 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 tion referred to as the ‘‘Secretary’’). Members shall 

2 first be appointed to the Council not later than 30 

3 days after the date of the enactment of this Act. 

4 (2) MEMBERS.— 

5 (A) IN GENERAL.—The members of the 

6 Council shall include one senior officer or em7 ployee from each of the following agencies: 

8 (i) The Agency for Healthcare Re9 search and Quality. 

10 (ii) The Centers for Medicare and 

11 Medicaid Services. 

12 (iii) The National Institutes of 

13 Health. 

14 (iv) The Office of the National Coor15 dinator for Health Information Tech16 nology. 

17 (v) The Food and Drug Administra18 tion. 

19 (vi) The Veterans Health Administra20 tion within the Department of Veterans 

21 Affairs. 

22 (vii) The office within the Department 

23 of Defense responsible for management of 

24 the Department of Defense Military 

25 Health Care System. 


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1 (B) QUALIFICATIONS.—At least half of the 

2 members of the Council shall be physicians or 

3 other experts with clinical expertise. 

4 (3) CHAIRMAN; VICE CHAIRMAN.—The Sec5 retary shall serve as Chairman of the Council and 

6 shall designate a member to serve as Vice Chairman. 

7 (d) REPORTS.— 

8 (1) INITIAL REPORT.—Not later than June 30, 

9 2009, the Council shall submit to the President and 

10 the Congress a report containing information de11 scribing Federal activities on comparative clinical ef12 fectiveness research and recommendations for addi13 tional investments in such research conducted or 

14 supported from funds made available for allotment 

15 by the Secretary for comparative clinical effective16 ness research in this Act. 

17 (2) ANNUAL REPORT.—The Council shall sub18 mit to the President and Congress an annual report 

19 regarding its activities and recommendations con20 cerning the infrastructure needs, appropriate organi21 zational expenditures and opportunities for better 

22 coordination of comparative clinical effectiveness re23 search by relevant Federal departments and agen24 cies. 


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1 (e) STAFFING; SUPPORT.—From funds made avail2 able for allotment by the Secretary for comparative clinical 

3 effectiveness research in this Act, the Secretary shall make 

4 available not more than 1 percent to the Council for staff 

5 and administrative support. 

6 (TRANSFER OF FUNDS)

7 SEC. 803. (a) Not more than 1 percent of the funds 

8 made available to the Department of Labor in this title 

9 may be transferred by the Secretary of Labor to ‘‘Employ10 ment and Training Administration—Program Administra11 tion’’, ‘‘Employment Standards Administration—Salaries 

12 and Expenses’’, ‘‘Occupational Safety and Health Admin13 istration—Salaries and Expenses’’ and ‘‘Departmental 

14 Management—Salaries and Expenses’’ for expenses nec15 essary to administer and coordinate funds made available 

16 to the Department of Labor in this title; oversee and 

17 evaluate the use of such funds; and enforce applicable laws 

18 and regulations governing worker rights and protections 

19 associated with the funds made available in this Act. 

20 (b) Not later than 10 days prior to obligating any 

21 funds proposed to be transferred under subsection (a), the 

22 Secretary shall provide to the Committees on Appropria23 tions of the House of Representatives and the Senate an 

24 operating plan describing the planned uses of each amount 

25 proposed to be transferred. 


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1 (c) Funds transferred under this section may be 

2 available for obligation through September 30, 2010. 

3 SEC. 804. ELIGIBLE EMPLOYEES IN THE REC4 REATIONAL MARINE INDUSTRY. Section 2(3)(F) of the 

5 Longshore and Harbor Workers’ Compensation Act (33 

6 U.S.C. 902(3)(F)) is amended— 

7 (1) by striking ‘‘, repair or dismantle’’; and 

8 (2) by striking the semicolon and inserting ‘‘, or 

9 individuals employed to repair any recreational ves10 sel, or to dismantle any part of a recreational vessel 

11 in connection with the repair of such vessel;’’. 

12 TITLE IX—LEGISLATIVE BRANCH 

13 GOVERNMENT ACCOUNTABILITY OFFICE 

14 SALARIES AND EXPENSES

15 For an additional amount for ‘‘Salaries and Ex16 penses’’ of the Government Accountability Office, 

17 $20,000,000, to remain available until September 30, 

18 2010. 

19 GENERAL PROVISIONS—THIS TITLE 

20 SEC. 901. GOVERNMENT ACCOUNTABILITY OFFICE

21 REVIEWS AND REPORTS. (a) REVIEWS AND REPORTS.— 

22 (1) IN GENERAL.—The Comptroller General 

23 shall conduct bimonthly reviews and prepare reports 

24 on such reviews on the use by selected State and lo25 calities of funds made available in this Act. Such reVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00158 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ports, along with any audits conducted by the Comp2 troller General of such funds, shall be posted on the 

3 Internet and linked to the website established under 

4 this Act by the Recovery Accountability and Trans5 parency Board. 

6 (2) REDACTIONS.—Any portion of a report or 

7 audit under this subsection may be redacted when 

8 made publicly available, if that portion would dis9 close information that is not subject to disclosure 

10 under section 552 of title 5, United States Code 

11 (commonly known as the Freedom of Information 

12 Act). 

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. 902. ACCESS OF GOVERNMENT ACCOUNT17 ABILITY OFFICE. Each contract awarded using funds 

18 made available in this Act shall provide that the Comp19 troller General and his representatives are authorized— 

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

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

23 to, and involve transactions relating to, the contract 

24 or subcontract; and 


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1 (2) to interview any current employee regarding 

2 such transactions. 

3 TITLE X—MILITARY CONSTRUCTION AND 

4 VETERANS AFFAIRS, AND RELATED AGENCIES 

5 DEPARTMENT OF DEFENSE 

6 MILITARY CONSTRUCTION, ARMY

7 For an additional amount for ‘‘Military Construction, 

8 Army’’, $637,875,000, to remain available until Sep9 tember 30, 2013, of which $84,100,000 shall be for child 

10 development centers; $481,000,000 shall be for warrior 

11 transition complexes; and $42,400,000 shall be for health 

12 and dental clinics (including acquisition, construction, in13 stallation, and equipment): Provided, That notwith14 standing any other provision of law, such funds may be 

15 obligated and expended to carry out planning and design 

16 and military construction projects in the United States not 

17 otherwise authorized by law: Provided further, That of the 

18 funds provided under this heading, not to exceed 

19 $30,375,000 shall be available for study, planning, design, 

20 and architect and engineer services: Provided further, That 

21 within 30 days of enactment of this Act the Secretary of 

22 the Army shall submit to the Committees on Appropria23 tions of both Houses of Congress an expenditure plan for 

24 funds provided under this heading prior to obligation. 


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AMDT. NO. 570 

1 MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

2 For an additional amount for ‘‘Military Construction, 

3 Navy and Marine Corps’’, $990,092,000, to remain avail4 able until September 30, 2013, of which $172,820,000 

5 shall be for child development centers; $174,304,000 shall 

6 be for barracks; $125,000,000 shall be for health clinic 

7 replacement, and $494,362,000 shall be for energy con8 servation and alternative energy projects (including acqui9 sition, construction, installation, and equipment): Pro10 vided, That notwithstanding any other provision of law, 

11 such funds may be obligated and expended to carry out 

12 planning and design and military construction projects in 

13 the United States not otherwise authorized by law: Pro14 vided further, That of the funds provided under this head15 ing, not to exceed $23,606,000 shall be available for study, 

16 planning, design, and architect and engineer services: Pro17 vided further, That within 30 days of enactment of this 

18 Act the Secretary of the Navy shall submit to the Commit19 tees on Appropriations of both Houses of Congress an ex20 penditure plan for funds provided under this heading prior 

21 to obligation. 

22 MILITARY CONSTRUCTION, AIR FORCE

23 For an additional amount for ‘‘Military Construction, 

24 Air Force’’, $871,332,000, to remain available until Sep25 tember 30, 2013, of which $80,100,000 shall be for child 


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1 development centers; $612,246,000 shall be for dor2 mitories; and $138,100,000 shall be for health clinics (in3 cluding acquisition, construction, installation, and equip4 ment): Provided, That notwithstanding any other provi5 sion of law, such funds may be obligated and expended 

6 to carry out planning and design and military construction 

7 projects in the United States not otherwise authorized by 

8 law: Provided further, That of the funds provided under 

9 this heading, not to exceed $40,886,000 shall be available 

10 for study, planning, design, and architect and engineer 

11 services: Provided further, That within 30 days of enact12 ment of this Act the Secretary of the Air Force shall sub13 mit to the Committees on Appropriations of both Houses 

14 of Congress an expenditure plan for funds provided under 

15 this heading prior to obligation. 

16 MILITARY CONSTRUCTION, DEFENSE-WIDE

17 For an additional amount for ‘‘Military Construction, 

18 Defense-Wide’’, $118,560,000 for the Energy Conserva19 tion Investment Program, to remain available until Sep20 tember 30, 2010: Provided, That notwithstanding any 

21 other provision of law, such funds may be obligated and 

22 expended to carry out planning and design and military 

23 construction projects in the United States not otherwise 

24 authorized by law: Provided further, That within 30 days 

25 of enactment of this Act the Secretary of Defense shall 


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AMDT. NO. 570 

1 submit to the Committees on Appropriations of both 

2 Houses of Congress an expenditure plan for funds pro3 vided under this heading prior to obligation. 

4 MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

5 For an additional amount for ‘‘Military Construction, 

6 Army National Guard’’, $150,000,000 for readiness cen7 ters (including construction, acquisition, expansion, reha8 bilitation, and conversion), to remain available until Sep9 tember 30, 2013: Provided, That notwithstanding any 

10 other provision of law, such funds may be obligated and 

11 expended to carry out planning and design and military 

12 construction projects in the United States not otherwise 

13 authorized by law: Provided further, That within 30 days 

14 of enactment of this Act the Director of the Army Na15 tional Guard shall submit to the Committees on Appro16 priations of both Houses of Congress an expenditure plan 

17 for funds provided under this heading prior to obligation. 

18 MILITARY CONSTRUCTION, AIR NATIONAL GUARD

19 For an additional amount for ‘‘Military Construction, 

20 Air National Guard’’, $110,000,000, to remain available 

21 until September 30, 2013: Provided, That notwithstanding 

22 any other provision of law, such funds may be obligated 

23 and expended to carry out planning and design and mili24 tary construction projects in the United States not other25 wise authorized by law: Provided further, That within 30 


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AMDT. NO. 570 

1 days of enactment of this Act the Director of the Air Na2 tional Guard shall submit to the Committees on Appro3 priations of both Houses of Congress an expenditure plan 

4 for funds provided under this heading prior to obligation. 

5 FAMILY HOUSING CONSTRUCTION, ARMY

6 For an additional amount for ‘‘Family Housing Con7 struction, Army’’, $34,570,000, to remain available until 

8 September 30, 2013: Provided, That notwithstanding any 

9 other provision of law, such funds may be obligated and 

10 expended to carry out planning and design and military 

11 construction projects in the United States not otherwise 

12 authorized by law: Provided further, That within 30 days 

13 of enactment of this Act the Secretary of the Army shall 

14 submit to the Committees on Appropriations of both 

15 Houses of Congress an expenditure plan for funds pro16 vided under this heading prior to obligation. 

17 FAMILY HOUSING OPERATION AND MAINTENANCE, 

18 ARMY

19 For an additional amount for ‘‘Family Housing Oper20 ation and Maintenance, Army’’, $3,932,000: Provided, 

21 That notwithstanding any other provision of law, such 

22 funds may be obligated and expended for operation and 

23 maintenance and minor construction projects in the 

24 United States not otherwise authorized by law. 


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AMDT. NO. 570 

1 FAMILY HOUSING CONSTRUCTION, AIR FORCE

2 For an additional amount for ‘‘Family Housing Con3 struction, Air Force’’, $80,100,000, to remain available 

4 until September 30, 2013: Provided, That notwithstanding 

5 any other provision of law, such funds may be obligated 

6 and expended to carry out planning and design and mili7 tary construction projects in the United States not other8 wise authorized by law: Provided further, That within 30 

9 days of enactment of this Act the Secretary of the Air 

10 Force shall submit to the Committees on Appropriations 

11 of both Houses of Congress an expenditure plan for funds 

12 provided under this heading prior to obligation. 

13 FAMILY HOUSING OPERATION AND MAINTENANCE, AIR

14 FORCE

15 For an additional amount for ‘‘Family Housing Oper16 ation and Maintenance, Air Force’’, $16,461,000: Pro17 vided, That notwithstanding any other provision of law, 

18 such funds may be obligated and expended for operation 

19 and maintenance and minor construction projects in the 

20 United States not otherwise authorized by law. 

21 HOMEOWNERS ASSISTANCE FUND

22 For an additional amount for ‘‘Homeowners Assist23 ance Fund’’, established by section 1013 of the Dem24 onstration Cities and Metropolitan Development Act of 


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AMDT. NO. 570 

1 1966, as amended (42 U.S.C. 3374), $410,973,000, to re2 main available until expended. 

3 ADMINISTRATIVE PROVISION

4 SEC. 1001. (a) TEMPORARY EXPANSION OF HOME5 OWNERS ASSISTANCE PLAN TO RESPOND TO MORTGAGE

6 FORECLOSURE AND CREDIT CRISIS. Section 1013 of the 

7 Demonstration Cities and Metropolitan Development Act 

8 of 1966 (42 U.S.C. 3374) is amended— 

9 (1) in subsection (a)— 

10 (A) by redesignating paragraphs (1), (2), 

11 and (3) as clauses (i), (ii), and (iii), respec12 tively, and indenting such subparagraphs, as so 

13 redesignated, 6 ems from the left margin; 

14 (B) by striking ‘‘Notwithstanding any 

15 other provision of law’’ and inserting the fol16 lowing: 

17 ‘‘(1) ACQUISITION OF PROPERTY AT OR NEAR

18 MILITARY INSTALLATIONS THAT HAVE BEEN OR19 DERED TO BE CLOSED.—Notwithstanding any other 

20 provision of law’’; 

21 (C) by striking ‘‘if he determines’’ and in22 serting ‘‘if— 

23 ‘‘(A) the Secretary determines—’’; 


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AMDT. NO. 570 

1 (D) in clause (iii), as redesignated by sub2 paragraph (A), by striking the period at the 

3 end and inserting ‘‘; or’’; and 

4 (E) by adding at the end the following: 

5 ‘‘(B) the Secretary determines— 

6 ‘‘(i) that the conditions in clauses (i) 

7 and (ii) of subparagraph (A) have been 

8 met; 

9 ‘‘(ii) that the closing or realignment 

10 of the base or installation resulted from a 

11 realignment or closure carried out under 

12 the 2005 round of defense base closure 

13 and realignment under the Defense Base 

14 Closure and Realignment Act of 1990 

15 (part XXIX of Public Law 101–510; 10 

16 U.S.C. 2687 note); 

17 ‘‘(iii) that the property was purchased 

18 by the owner before July 1, 2006; 

19 ‘‘(iv) that the property was sold by 

20 the owner between July 1, 2006, and Sep21 tember 30, 2012, or an earlier end date 

22 designated by the Secretary; 

23 ‘‘(v) that the property is the primary 

24 residence of the owner; and 


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AMDT. NO. 570 

1 ‘‘(vi) that the owner has not pre2 viously received benefit payments author3 ized under this subsection. 

4 ‘‘(2) HOMEOWNER ASSISTANCE FOR WOUNDED

5 MEMBERS OF THE ARMED FORCES, DEPARTMENT OF

6 DEFENSE AND UNITED STATES COAST GUARD CIVIL7 IAN EMPLOYEES, AND THEIR SPOUSES.—Notwith8 standing any other provision of law, the Secretary of 

9 Defense is authorized to acquire title to, hold, man10 age, and dispose of, or, in lieu thereof, to reimburse 

11 for certain losses upon private sale of, or foreclosure 

12 against, any property improved with a one- or two13 family dwelling which was at the time of the relevant 

14 wound, injury, or illness, the primary residence of— 

15 ‘‘(A) any member of the Armed Forces in 

16 medical transition who— 

17 ‘‘(i) incurred a wound, injury, or ill18 ness in the line of duty during a deploy19 ment in support of the Armed Forces; 

20 ‘‘(ii) is disabled to a degree of 30 per21 cent or more as a result of such wound, in22 jury, or illness, as determined by the Sec23 retary of Defense or the Secretary of Vet24 erans Affairs; and 


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AMDT. NO. 570 

1 ‘‘(iii) is reassigned in furtherance of 

2 medical treatment or rehabilitation, or due 

3 to medical retirement in connection with 

4 such disability; 

5 ‘‘(B) any civilian employee of the Depart6 ment of Defense or the United States Coast 

7 Guard who— 

8 ‘‘(i) was wounded, injured, or became 

9 ill in the line of duty during a forward de10 ployment in support of the Armed Forces; 

11 and 

12 ‘‘(ii) is reassigned in furtherance of 

13 medical treatment, rehabilitation, or due to 

14 medical retirement resulting from the sus15 tained disability; or 

16 ‘‘(C) the spouse of a member of the Armed 

17 Forces or a civilian employee of the Department 

18 of Defense or the United States Coast Guard 

19 if— 

20 ‘‘(i) the member or employee was 

21 killed in the line of duty during a deploy22 ment in support of the Armed Forces or 

23 died from a wound, injury, or illness in24 curred in the line of duty during such a 

25 deployment; and 


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AMDT. NO. 570 

1 ‘‘(ii) the spouse relocates from such 

2 residence within 2 years after the death of 

3 such member or employee. 

4 ‘‘(3) TEMPORARY HOMEOWNER ASSISTANCE

5 FOR MEMBERS OF THE ARMED FORCES PERMA6 NENTLY REASSIGNED DURING SPECIFIED MORTGAGE

7 CRISIS.—Notwithstanding any other provision of 

8 law, the Secretary of Defense is authorized to ac9 quire title to, hold, manage, and dispose of, or, in 

10 lieu thereof, to reimburse for certain losses upon pri11 vate sale of, or foreclosure against, any property im12 proved with a one- or two-family dwelling situated at 

13 or near a military base or installation, if the Sec14 retary determines— 

15 ‘‘(A) that the owner is a member of the 

16 Armed Forces serving on permanent assign17 ment; 

18 ‘‘(B) that the owner is permanently reas19 signed by order of the United States Govern20 ment to a duty station or home port outside a 

21 50-mile radius of the base or installation; 

22 ‘‘(C) that the reassignment was ordered 

23 between February 1, 2006, and September 30, 

24 2012, or an earlier end date designated by the 

25 Secretary; 


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AMDT. NO. 570 

1 ‘‘(D) that the property was purchased by 

2 the owner before July 1, 2006; 

3 ‘‘(E) that the property was sold by the 

4 owner between July 1, 2006, and September 

5 30, 2012, or an earlier end date designated by 

6 the Secretary; 

7 ‘‘(F) that the property is the primary resi8 dence of the owner; and 

9 ‘‘(G) that the owner has not previously re10 ceived benefit payments authorized under this 

11 subsection.’’; 

12 (2) in subsection (b), by striking ‘‘this section’’ 

13 each place it appears and inserting ‘‘subsection 

14 (a)(1)’’; 

15 (3) in subsection (c)— 

16 (A) by striking ‘‘Such persons’’ and insert17 ing the following: 

18 ‘‘(1) HOMEOWNER ASSISTANCE RELATED TO

19 CLOSED MILITARY INSTALLATIONS.— 

20 ‘‘(A) IN GENERAL.—Such persons’’; 

21 (B) by striking ‘‘set forth above shall elect 

22 either (1) to receive’’ and inserting the fol23 lowing: ‘‘set forth in subsection (a)(1) shall 

24 elect either— 

25 ‘‘(i) to receive’’; 


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AMDT. NO. 570 

1 (C) by striking ‘‘difference between (A) 95 

2 per centum’’ and all that follows through ‘‘(B) 

3 the fair market value’’ and inserting the fol4 lowing: ‘‘difference between— 

5 ‘‘(I) 95 per centum of the fair 

6 market value of their property (as 

7 such value is determined by the Sec8 retary of Defense) prior to public an9 nouncement of intention to close all or 

10 part of the military base or installa11 tion; 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 

15 the 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 

20 the preceding sentence an amount’’ and insert21 ing ‘‘outstanding mortgages. 

22 ‘‘(B) REIMBURSEMENT OF EXPENSES.— 

23 The Secretary may also pay a person who elects 

24 to receive a cash payment under subparagraph 

25 (A) an amount’’; and 


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AMDT. NO. 570 

1 (F) by striking ‘‘best interest of the Fed2 eral Government. Cash payment’’ and inserting 

3 the following: ‘‘best interest of the United 

4 States. 

5 ‘‘(2) HOMEOWNER ASSISTANCE FOR WOUNDED

6 INDIVIDUALS AND THEIR SPOUSES.— 

7 ‘‘(A) IN GENERAL.—Persons eligible under 

8 the criteria set forth in subsection (a)(2) may 

9 elect either— 

10 ‘‘(i) to receive a cash payment as com11 pensation for losses which may be or have 

12 been sustained in a private sale, in an 

13 amount not to exceed the difference be14 tween— 

15 ‘‘(I) 95 per centum of prior fair 

16 market value of their property (as 

17 such value is determined by the Sec18 retary of Defense); and 

19 ‘‘(II) the fair market value of 

20 such property (as such value is so de21 termined) at the time of the wound, 

22 injury, or illness qualifying the indi23 vidual for benefits under subsection 

24 (a)(2); or 


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AMDT. NO. 570 

1 ‘‘(ii) to receive, as purchase price for 

2 their property an amount not to exceed 90 

3 per centum of prior fair market value as 

4 such value is determined by the Secretary 

5 of Defense, or the amount of the out6 standing mortgages. 

7 ‘‘(B) DETERMINATION OF BENEFITS.— 

8 The Secretary may also pay a person who elects 

9 to receive a cash payment under subparagraph 

10 (A) an amount that the Secretary determines 

11 appropriate to reimburse the person for the 

12 costs incurred by the person in the sale of the 

13 property if the Secretary determines that such 

14 payment will benefit the person and is in the 

15 best interest of the United States. 

16 ‘‘(3) HOMEOWNER ASSISTANCE FOR PERMA17 NENTLY REASSIGNED INDIVIDUALS.— 

18 ‘‘(A) IN GENERAL.—Persons eligible under 

19 the criteria set forth in subsection (a)(3) may 

20 elect either— 

21 ‘‘(i) to receive a cash payment as com22 pensation for losses which may be or have 

23 been sustained in a private sale, in an 

24 amount not to exceed the difference be25 tween— 


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AMDT. NO. 570 

1 ‘‘(I) 95 per centum of prior fair 

2 market value of their property (as 

3 such value is determined by the Sec4 retary of Defense); and 

5 ‘‘(II) the fair market value of 

6 such property (as such value is so de7 termined) at the time the person re8 ceived change of permanent station 

9 orders; or 

10 ‘‘(ii) to receive, as purchase price for 

11 their property an amount not to exceed 90 

12 per centum of prior fair market value as 

13 such value is determined by the Secretary 

14 of Defense, or the amount of the out15 standing mortgages. 

16 ‘‘(B) DETERMINATION OF BENEFITS.— 

17 The Secretary may also pay a person who elects 

18 to receive a cash payment under subparagraph 

19 (A) an amount that the Secretary determines 

20 appropriate to reimburse the person for the 

21 costs incurred by the person in the sale of the 

22 property if the Secretary determines that such 

23 payment will benefit the person and is in the 

24 best interest of the United States. 


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AMDT. NO. 570 

1 ‘‘(4) COMPENSATION AND LIMITATIONS RE2 LATED TO FORECLOSURES AND ENCUMBRANCES.— 

3 Cash payment’’; 

4 (4) by striking subsection (g); 

5 (5) in subsection (l), by striking ‘‘(a)(2)’’ and 

6 inserting ‘‘(a)(1)(A)(ii)’’; 

7 (6) in subsection (m), by striking ‘‘this section’’ 

8 and inserting ‘‘subsection (a)(1)’’; 

9 (7) in subsection (n)— 

10 (A) in paragraph (1), by striking ‘‘this sec11 tion’’ and inserting ‘‘subsection (a)(1)’’; and 

12 (B) in paragraph (2), by striking ‘‘this sec13 tion’’ and inserting ‘‘subsection (a)(1)’’; 

14 (8) in subsection (o)— 

15 (A) in paragraph (1), by striking ‘‘this sec16 tion’’ and inserting ‘‘subsection (a)(1)’’; 

17 (B) in paragraph (2), by striking ‘‘this sec18 tion’’ and inserting ‘‘subsection (a)(1)’’; and 

19 (C) by striking paragraph (4); and 

20 (9) by adding at the end the following new sub21 section: 

22 ‘‘(p) DEFINITIONS.—In this section: 

23 ‘‘(1) the term ‘Armed Forces’ has the meaning 

24 given the term ‘armed forces’ in section 101(a) of 

25 title 10, United States Code; 


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AMDT. NO. 570 

1 ‘‘(2) the term ‘civilian employee’ has the mean2 ing given the term ‘employee’ in section 2105(a) of 

3 title 5, United States Code; 

4 ‘‘(3) the term ‘medical transition’, in the case 

5 of a member of the Armed Forces, means a member 

6 who— 

7 ‘‘(A) is in Medical Holdover status; 

8 ‘‘(B) is in Active Duty Medical Extension 

9 status; 

10 ‘‘(C) is in Medical Hold status; 

11 ‘‘(D) is in a status pending an evaluation 

12 by a medical evaluation board; 

13 ‘‘(E) has a complex medical need requiring 

14 six or more months of medical treatment; or 

15 ‘‘(F) is assigned or attached to an Army 

16 Warrior Transition Unit, an Air Force Patient 

17 Squadron, a Navy Patient Multidisciplinary 

18 Care Team, or a Marine Patient Affairs Team/ 

19 Wounded Warrior Regiment; and 

20 ‘‘(4) the term ‘nonappropriated fund instrumen21 tality employee’ means a civilian employee who— 

22 ‘‘(A) is a citizen of the United States; and 

23 ‘‘(B) is paid from nonappropriated funds 

24 of Army and Air Force Exchange Service, Navy 

25 Resale and Services Support Office, Marine 


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AMDT. NO. 570 

1 Corps exchanges, or any other instrumentality 

2 of the United States under the jurisdiction of 

3 the Armed Forces which is conducted for the 

4 comfort, pleasure, contentment, or physical or 

5 mental improvement of members of the Armed 

6 Forces.’’. 

7 (b) CLERICAL AMENDMENT.—Such section is further 

8 amended in the section heading by inserting ‘‘and certain 

9 property owned by members of the armed forces, depart10 ment of defense and united states coast guard civilian em11 ployees, and surviving spouses’’ after ‘‘ordered to be 

12 closed’’. 

13 (c) AUTHORITY TO USE APPROPRIATED FUNDS.— 

14 Notwithstanding subsection (i) of such section, amounts 

15 appropriated or otherwise made available by this title 

16 under the heading ‘‘Homeowners Assistance Fund’’ may 

17 be used for the Homeowners Assistance Fund established 

18 under such section. 

19 DEPARTMENT OF VETERANS AFFAIRS 

20 VETERANS HEALTH ADMINISTRATION

21 MEDICAL SUPPORT AND COMPLIANCE

22 For an additional amount for ‘‘Medical Support and 

23 Compliance’’, $5,000,000, to remain available until Sep24 tember 30, 2010, to support contract administration and 


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AMDT. NO. 570 

1 energy initiative execution at the Veterans Health Admin2 istration. 

3 MEDICAL FACILITIES

4 For an additional amount for ‘‘Medical Facilities’’, 

5 $1,370,459,000, to remain available until September 30, 

6 2010, of which $1,047,313,000 shall be for facility condi7 tion assessment deficiencies and non-recurring mainte8 nance at existing medical facilities; and $323,146,000 

9 shall be for energy efficiency initiatives. 

10 NATIONAL CEMETERY ADMINISTRATION

11 For an additional amount for ‘‘National Cemetery 

12 Administration’’, $64,961,000, to remain available until 

13 September 30, 2010, of which $59,476,000 shall be for 

14 capital infrastructure and memorial and monument re15 pairs; and $5,485,000 shall be for energy efficiency initia16 tives. 

17 DEPARTMENTAL ADMINISTRATION

18 GENERAL OPERATING EXPENSES

19 For an additional amount for ‘‘General Operating 

20 Expenses’’, $1,125,000, to remain available until Sep21 tember 30, 2010, for additional Full Time Equivalent sal22 ary and expenses for major construction project adminis23 tration and execution and energy initiative execution. 


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AMDT. NO. 570 

1 INFORMATION TECHNOLOGY SYSTEMS

2 For an additional amount for ‘‘Information Tech3 nology Systems’’, $195,000,000, to remain available until 

4 September 30, 2010, of which $145,000,000 shall be for 

5 the Veterans Benefits Administration’s development of 

6 paperless claims processing; and $50,000,000 shall be for 

7 the development of systems required to implement chapter 

8 33 of title 38, United States Code. 

9 OFFICE OF INSPECTOR GENERAL

10 For an additional amount for ‘‘Office of Inspector 

11 General’’, $4,400,000, to remain available until September 

12 30, 2011, for oversight and audit of programs, grants and 

13 projects funded under this title. 

14 CONSTRUCTION, MAJOR PROJECTS

15 For an additional amount for ‘‘Construction, Major 

16 Projects’’, $1,105,333,000, to remain available until Sep17 tember 30, 2013, which shall be for acceleration and con18 struction of ongoing and planned construction, including 

19 physical security construction, of major medical facilities 

20 and National Cemeteries consistent with the Department 

21 of Veterans Affairs’ Five Year Capital Plan: Provided, 

22 That notwithstanding any other provision of law, such 

23 funds may be obligated and expended to carry out plan24 ning and design and major medical facility construction 

25 not otherwise authorized by law: Provided further, That 


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AMDT. NO. 570 

1 within 30 days of enactment of this Act the Secretary of 

2 Veterans Affairs shall submit to the Committees on Ap3 propriations of both Houses of Congress an expenditure 

4 plan for funds provided under this heading prior to obliga5 tion. 

6 CONSTRUCTION, MINOR PROJECTS

7 For an additional amount for ‘‘Construction, Minor 

8 Projects’’, $939,836,000, to remain available until Sep9 tember 30, 2010, of which $860,742,000 shall be for Vet10 erans Health Administration minor construction; 

11 $20,300,000 shall be for Veterans Benefits Administra12 tion minor construction, including $300,000 for energy ef13 ficiency initiatives; and $29,012,000 shall be for National 

14 Cemetery Administration minor construction. 

15 GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE

16 FACILITIES

17 For an additional amount for ‘‘Grants for Construc18 tion of State Extended Care Facilities’’, $257,986,000, to 

19 remain available until September 30, 2010, for grants to 

20 assist States to acquire or construct State nursing home 

21 and domiciliary facilities and to remodel, modify, or alter 

22 existing hospital, nursing home, and domiciliary facilities 

23 in State homes, for furnishing care to veterans as author24 ized by sections 8131 through 8137 of title 38, United 

25 States Code. 


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AMDT. NO. 570 

1 ADMINISTRATIVE PROVISION

2 SEC. 1002. PAYMENTS TO ELIGIBLE PERSONS WHO

3 SERVED IN THE UNITED STATES ARMED FORCES IN THE

4 FAR EAST DURING WORLD WAR II. (a) FINDINGS.—Con5 gress makes the following findings: 

6 (1) The Philippine islands became a United 

7 States possession in 1898 when they were ceded 

8 from Spain following the Spanish-American War. 

9 (2) During World War II, Filipinos served in a 

10 variety of units, some of which came under the di11 rect control of the United States Armed Forces. 

12 (3) The regular Philippine Scouts, the new 

13 Philippine Scouts, the Guerrilla Services, and more 

14 than 100,000 members of the Philippine Common15 wealth Army were called into the service of the 

16 United States Armed Forces of the Far East on 

17 July 26, 1941, by an executive order of President 

18 Franklin D. Roosevelt. 

19 (4) Even after hostilities had ceased, wartime 

20 service of the new Philippine Scouts continued as a 

21 matter of law until the end of 1946, and the force 

22 gradually disbanded and was disestablished in 1950. 

23 (5) Filipino veterans who were granted benefits 

24 prior to the enactment of the so-called Rescissions 

25 Acts of 1946 (Public Laws 79–301 and 79–391) 


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AMDT. NO. 570 

1 currently receive full benefits under laws adminis2 tered by the Secretary of Veterans Affairs, but 

3 under section 107 of title 38, United States Code, 

4 the service of certain other Filipino veterans is 

5 deemed not to be active service for purposes of such 

6 laws. 

7 (6) These other Filipino veterans only receive 

8 certain benefits under title 38, United States Code, 

9 and, depending on where they legally reside, are paid 

10 such benefit amounts at reduced rates. 

11 (7) The benefits such veterans receive include 

12 service-connected compensation benefits paid under 

13 chapter 11 of title 38, United States Code, depend14 ency indemnity compensation survivor benefits paid 

15 under chapter 13 of title 38, United States Code, 

16 and burial benefits under chapters 23 and 24 of title 

17 38, United States Code, and such benefits are paid 

18 to beneficiaries at the rate of $0.50 per dollar au19 thorized, unless they lawfully reside in the United 

20 States. 

21 (8) Dependents’ educational assistance under 

22 chapter 35 of title 38, United States Code, is also 

23 payable for the dependents of such veterans at the 

24 rate of $0.50 per dollar authorized, regardless of the 

25 veterans’ residency. 


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AMDT. NO. 570 

1 (b) COMPENSATION FUND.— 

2 (1) IN GENERAL.—There is in the general fund 

3 of the Treasury a fund to be known as the ‘‘Filipino 

4 Veterans Equity Compensation Fund’’ (in this sec5 tion referred to as the ‘‘compensation fund’’). 

6 (2) AVAILABILITY OF FUNDS.—Subject to the 

7 availability of appropriations for such purpose, 

8 amounts in the fund shall be available to the Sec9 retary of Veterans Affairs without fiscal year limita10 tion to make payments to eligible persons in accord11 ance with this section. 

12 (c) PAYMENTS.— 

13 (1) IN GENERAL.—The Secretary may make a 

14 payment from the compensation fund to an eligible 

15 person who, during the one-year period beginning on 

16 the date of the enactment of this Act, submits to the 

17 Secretary a claim for benefits under this section. 

18 The application for the claim shall contain such in19 formation and evidence as the Secretary may re20 quire. 

21 (2) PAYMENT TO SURVIVING SPOUSE.—If an 

22 eligible person who has filed a claim for benefits 

23 under this section dies before payment is made 

24 under this section, the payment under this section 


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1 shall be made instead to the surviving spouse, if any, 

2 of the eligible person. 

3 (d) ELIGIBLE PERSONS.—An eligible person is any 

4 person who— 

5 (1) served— 

6 (A) before July 1, 1946, in the organized 

7 military forces of the Government of the Com8 monwealth of the Philippines, while such forces 

9 were in the service of the Armed Forces of the 

10 United States pursuant to the military order of 

11 the President dated July 26, 1941, including 

12 among such military forces organized guerrilla 

13 forces under commanders appointed, des14 ignated, or subsequently recognized by the 

15 Commander in Chief, Southwest Pacific Area, 

16 or other competent authority in the Army of the 

17 United States; or 

18 (B) in the Philippine Scouts under section 

19 14 of the Armed Forces Voluntary Recruitment 

20 Act of 1945 (59 Stat. 538); and 

21 (2) was discharged or released from service de22 scribed in paragraph (1) under conditions other than 

23 dishonorable. 

24 (e) PAYMENT AMOUNTS.—Each payment under this 

25 section shall be— 


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1 (1) in the case of an eligible person who is not 

2 a citizen of the United States, in the amount of 

3 $9,000; and 

4 (2) in the case of an eligible person who is a 

5 citizen of the United States, in the amount of 

6 $15,000. 

7 (f) LIMITATION.—The Secretary may not make more 

8 than one payment under this section for each eligible per9 son described in subsection (d). 

10 (g) CLARIFICATION OF TREATMENT OF PAYMENTS

11 UNDER CERTAIN LAWS.—Amounts paid to a person 

12 under this section— 

13 (1) shall be treated for purposes of the internal 

14 revenue laws of the United States as damages for 

15 human suffering; and 

16 (2) shall not be included in income or resources 

17 for purposes of determining— 

18 (A) eligibility of an individual to receive 

19 benefits described in section 3803(c)(2)(C) of 

20 title 31, United States Code, or the amount of 

21 such benefits; 

22 (B) eligibility of an individual to receive 

23 benefits under title VIII of the Social Security 

24 Act, or the amount of such benefits; or 


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1 (C) eligibility of an individual for, or the 

2 amount of benefits under, any other Federal or 

3 federally assisted program. 

4 (h) RELEASE.— 

5 (1) IN GENERAL.—Except as provided in para6 graph (2), the acceptance by an eligible person or 

7 surviving spouse, as applicable, of a payment under 

8 this section shall be final, and shall constitute a 

9 complete release of any claim against the United 

10 States by reason of any service described in sub11 section (d). 

12 (2) PAYMENT OF PRIOR ELIGIBILITY STA13 TUS.—Nothing in this section shall prohibit a person 

14 from receiving any benefit (including health care, 

15 survivor, or burial benefits) which the person would 

16 have been eligible to receive based on laws in effect 

17 as of the day before the date of the enactment of 

18 this Act. 

19 (i) RECOGNITION OF SERVICE.—The service of a per20 son as described in subsection (d) is hereby recognized as 

21 active military service in the Armed Forces for purposes 

22 of, and to the extent provided in, this section. 

23 (j) ADMINISTRATION.— 

24 (1) The Secretary shall promptly issue applica25 tion forms and instructions to ensure the prompt 


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1 and efficient administration of the provisions of this 

2 section. 

3 (2) The Secretary shall administer the provi4 sions of this section in a manner consistent with ap5 plicable provisions of title 38, United States Code, 

6 and other provisions of law, and shall apply the defi7 nitions in section 101 of such title in the administra8 tion of such provisions, except to the extent other9 wise provided in this section. 

10 (k) REPORTS.—The Secretary shall include, in docu11 ments submitted to Congress by the Secretary in support 

12 of the President’s budget for each fiscal year, detailed in13 formation on the operation of the compensation fund, in14 cluding the number of applicants, the number of eligible 

15 persons receiving benefits, the amounts paid out of the 

16 compensation fund, and the administration of the com17 pensation fund for the most recent fiscal year for which 

18 such data is available. 

19 (l) AUTHORIZATION OF APPROPRIATION.—There is 

20 authorized to be appropriated to the compensation fund 

21 $198,000,000, to remain available until expended, to make 

22 payments under this section. 


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1 RELATED AGENCY 

2 DEPARTMENT OF DEFENSE—CIVIL 

3 CEMETERIAL EXPENSES, ARMY

4 SALARY AND EXPENSES

5 For an additional amount for ‘‘Cemeterial Expenses, 

6 Army’’, $60,300,000, to remain available until September 

7 30, 2010, for land development, columbarium construc8 tion, and relocation of utilities at Arlington National Cem9 etery. 

10 TITLE XI—STATE, FOREIGN OPERATIONS, AND 

11 RELATED PROGRAMS 

12 DEPARTMENT OF STATE 

13 ADMINISTRATION OF FOREIGN AFFAIRS

14 DIPLOMATIC AND CONSULAR PROGRAMS

15 For an additional amount for ‘‘Diplomatic and Con16 sular Programs’’ for urgent domestic facilities require17 ments, $90,000,000, to remain available until September 

18 30, 2010, of which up to $20,000,000 shall be available 

19 for passport facilities and systems, and up to $65,000,000 

20 shall be available for a consolidated security training facil21 ity in the United States and should be obligated in accord22 ance with United States General Services Administration 

23 site selection procedures: Provided, That the Secretary of 

24 State shall submit to the Committees on Appropriations 

25 within 90 days of enactment of this Act a detailed spendVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00189 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ing plan for funds appropriated under this heading: Pro2 vided further, That with respect to the funds made avail3 able for passport facilities and systems, such plan shall 

4 be developed in consultation with the Department of 

5 Homeland Security and the General Services Administra6 tion and shall coordinate and co-locate, to the extent fea7 sible, the construction of passport agencies with other 

8 Federal facilities. 

9 CAPITAL INVESTMENT FUND

10 For an additional amount for ‘‘Capital Investment 

11 Fund’’, $228,000,000, to remain available until Sep12 tember 30, 2010, which shall be available for information 

13 technology security and upgrades to support mission-crit14 ical operations: Provided, That the Secretary of State and 

15 the Administrator of the United States Agency for Inter16 national Development shall coordinate information tech17 nology systems, where appropriate, to increase efficiencies 

18 and eliminate redundancies, to include co-location of 

19 backup information management facilities: Provided fur20 ther, That the Secretary of State shall submit to the Com21 mittees on Appropriations within 90 days of enactment of 

22 this Act a detailed spending plan for funds appropriated 

23 under this heading. 


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1 OFFICE OF INSPECTOR GENERAL

2 For an additional amount for ‘‘Office of Inspector 

3 General’’ for oversight requirements, $1,500,000, to re4 main available until September 30, 2011. 

5 INTERNATIONAL COMMISSIONS 

6 INTERNATIONAL BOUNDARY AND WATER COMMISSION, 

7 UNITED STATES AND MEXICO

8 CONSTRUCTION

9 (INCLUDING TRANSFER OF FUNDS)

10 For an additional amount for ‘‘Construction’’ for the 

11 water quantity program to meet immediate repair and re12 habilitation requirements, $224,000,000, to remain avail13 able until September 30, 2010: Provided, That up to 

14 $2,000,000 may be transferred to, and merged with, funds 

15 available under the heading ‘‘International Boundary and 

16 Water Commission, United States and Mexico—Salaries 

17 and Expenses’’: Provided, That the Secretary of State 

18 shall submit to the Committees on Appropriations within 

19 90 days of enactment of this Act a detailed spending plan 

20 for 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 De11 velopment shall submit to the Committees on Appropria12 tions within 90 days of enactment of this Act a detailed 

13 spending 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 

18 of the United States Agency for International Develop19 ment Office of Inspector General’’ for oversight require20 ments, $500,000, to remain available until September 30, 

21 2011. 


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1 TITLE XII—TRANSPORTATION AND HOUSING 

2 AND URBAN DEVELOPMENT, AND RELATED 

3 AGENCIES 

4 DEPARTMENT OF TRANSPORTATION 

5 OFFICE OF THE SECRETARY

6 SUPPLEMENTAL DISCRETIONARY GRANTS FOR A

7 NATIONAL SURFACE TRANSPORTATION SYSTEM

8 For an additional amount for capital investments in 

9 surface transportation infrastructure, $5,500,000,000, to 

10 remain available until September 30, 2011: Provided, 

11 That the Secretary of Transportation shall distribute 

12 funds provided under this heading as discretionary grants 

13 to be awarded to State and local governments on a com14 petitive basis for projects that will have a significant im15 pact on the Nation, a metropolitan area, or a region: Pro16 vided further, That projects eligible for funding provided 

17 under this heading shall include, but not be limited to, 

18 highway or bridge projects eligible under title 23, United 

19 States Code, including interstate rehabilitation, improve20 ments to the rural collector road system, the reconstruc21 tion of overpasses and interchanges, bridge replacements, 

22 seismic retrofit projects for bridges, and road realign23 ments; public transportation projects eligible under chap24 ter 53 of title 49, United States Code, including invest25 ments in projects participating in the New Starts or Small 


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1 Starts programs that will expedite the completion of those 

2 projects and their entry into revenue service; passenger 

3 and freight rail transportation projects; and port infra4 structure investments, including projects that connect 

5 ports to other modes of transportation and improve the 

6 efficiency of freight movement: Provided further, That of 

7 the amount made available under this paragraph, the Sec8 retary may use an amount not to exceed $200,000,000 

9 for the purpose of paying the subsidy costs of projects eli10 gible for federal credit assistance under chapter 6 of title 

11 23, United States Code, if the Secretary finds that such 

12 use of the funds would advance the purposes of this para13 graph: Provided further, That in distributing funds pro14 vided under this heading, the Secretary shall take such 

15 measures so as to ensure an equitable geographic distribu16 tion of funds and an appropriate balance in addressing 

17 the needs of urban and rural communities: Provided fur18 ther, That a grant funded under this heading shall be not 

19 less than $20,000,000 and not greater than 

20 $500,000,000: Provided further, That the Federal share 

21 of the costs for which an expenditure is made under this 

22 heading may be up to 100 percent: Provided further, That 

23 the Secretary shall give priority to projects that require 

24 an additional share of Federal funds in order to complete 

25 an overall financing package, and to projects that are exVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00194 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 pected to be completed within 3 years of enactment of this 

2 Act: Provided further, That the Secretary shall publish cri3 teria on which to base the competition for any grants 

4 awarded under this heading not later than 75 days after 

5 enactment of this Act: Provided further, That the Sec6 retary shall require applications for funding provided 

7 under this heading to be submitted not later than 180 

8 days after enactment of this Act, and announce all 

9 projects selected to be funded from such funds not later 

10 than 1 year after enactment of this Act: Provided further, 

11 That the Secretary shall require all additional applications 

12 to be submitted not later than 1 year after enactment of 

13 this Act, and announce not later than 180 days following 

14 such 1-year period all additional projects selected to be 

15 funded with funds withdrawn from States and grantees 

16 and transferred from ‘‘Supplemental Grants for Highway 

17 Investments’’ and ‘‘Supplemental Grants for Public Tran18 sit Investment’’: Provided further, That projects conducted 

19 using funds provided under this heading must comply with 

20 the requirements of subchapter IV of chapter 31 of title 

21 40, United States Code: Provided further, That the Sec22 retary may retain up to $5,000,000 of the funds provided 

23 under this heading, and may transfer portions of those 

24 funds to the Administrators of the Federal Highway Ad25 ministration, the Federal Transit Administration, the 


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1 Federal Railroad Administration and the Maritime Ad2 ministration, to fund the award and oversight of grants 

3 made under this heading. 

4 FEDERAL AVIATION ADMINISTRATION

5 SUPPLEMENTAL FUNDING FOR FACILITIES AND

6 EQUIPMENT

7 For an additional amount for necessary investments 

8 in Federal Aviation Administration infrastructure, 

9 $200,000,000: Provided, That funding provided under this 

10 heading shall be used to make improvements to power sys11 tems, air route traffic control centers, air traffic control 

12 towers, terminal radar approach control facilities, and 

13 navigation and landing equipment: Provided further, That 

14 priority be given to such projects or activities that will be 

15 completed within 2 years of enactment of this Act: Pro16 vided further, That amounts made available under this 

17 heading may be provided through grants in addition to 

18 the other instruments authorized under section 106(l)(6) 

19 of title 49, United States Code: Provided further, That the 

20 Federal share of the costs for which an expenditure is 

21 made under this heading shall be 100 percent: Provided 

22 further, That amounts provided under this heading may 

23 be used for expenses the agency incurs in administering 

24 this program: Provided further, That not more than 60 

25 days after enactment of this Act, the Administrator shall 


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1 establish a process for applying, reviewing and awarding 

2 grants and cooperative and other transaction agreements, 

3 including the form and content of an application, and re4 quirements for the maintenance of records that are nec5 essary to facilitate an effective audit of the use of the 

6 funding provided: Provided further, That section 50101 of 

7 title 49, United States Code, shall apply to funds provided 

8 under this heading. 

9 SUPPLEMENTAL DISCRETIONARY GRANTS FOR AIRPORT

10 INVESTMENT

11 For an additional amount for capital expenditures 

12 authorized under sections 47102(3) and 47504(c) of title 

13 49, United States Code, and for the procurement, installa14 tion and commissioning of runway incursion prevention 

15 devices and systems at airports of such title, 

16 $1,100,000,000: Provided, That the Secretary of Trans17 portation shall distribute funds provided under this head18 ing as discretionary grants to airports, with priority given 

19 to those projects that demonstrate to his or her satisfac20 tion their ability to be completed within 2 years of enact21 ment of this Act, and serve to supplement and not sup22 plant planned expenditures from airport-generated reve23 nues or from other State and local sources on such activi24 ties: Provided further, That the Federal share payable of 

25 the costs for which a grant is made under this heading 


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1 shall be 100 percent: Provided further, That the amount 

2 made available under this heading shall not be subject to 

3 any limitation on obligations for the Grants-in-Aid for Air4 ports program set forth in any Act: Provided further, That 

5 section 50101 of title 49, United States Code, shall apply 

6 to funds provided under this heading: Provided further, 

7 That projects conducted using funds provided under this 

8 heading must comply with the requirements of subchapter 

9 IV of chapter 31 of title 40, United States Code: Provided 

10 further, That the Administrator of the Federal Aviation 

11 Administration may retain and transfer to ‘‘Federal Avia12 tion Administration, Operations’’ up to one-quarter of 1 

13 percent of the funds provided under this heading to fund 

14 the award and oversight by the Administrator of grants 

15 made under this heading. 

16 FEDERAL HIGHWAY ADMINISTRATION

17 SUPPLEMENTAL GRANTS FOR HIGHWAY INVESTMENT

18 For an additional amount for restoration, repair, con19 struction and other activities eligible under paragraph (b) 

20 of section 133 of title 23, United States Code, 

21 $27,060,000,000: Provided, That funds provided under 

22 this heading shall be apportioned to States using the for23 mula set forth in section 104(b)(3) of such title: Provided 

24 further, That 180 days following the date of such appor25 tionment, the Secretary of Transportation shall withdraw 


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1 from each State an amount equal to 50 percent of the 

2 funds awarded to that grantee less the amount of funding 

3 obligated, and the Secretary shall redistribute such 

4 amounts to other States that have had no funds with5 drawn under this proviso in the manner described in sec6 tion 120(c) of division K of Public Law 110–161: Provided 

7 further, That 1 year following the date of such apportion8 ment, the Secretary shall withdraw from each recipient of 

9 funds apportioned under this heading any unobligated 

10 funds and transfer such funds to ‘‘Supplemental Discre11 tionary Grants for a National Surface Transportation Sys12 tem’’: Provided further, That at the request of a State, 

13 the Secretary of Transportation may provide an extension 

14 of such 1-year period only to the extent that he or she 

15 feels satisfied that the State has encountered extreme con16 ditions that create an unworkable bidding environment or 

17 other extenuating circumstances: Provided further, That 

18 before granting a such an extension, the Secretary shall 

19 send a letter to the House and Senate Committees on Ap20 propriations that provides a thorough justification for the 

21 extension: Provided further, That the provisions of sub22 sections 133(d)(3) and 133(d)(4) of title 23, United 

23 States Code, shall apply to funds apportioned under this 

24 heading, except that the percentage of funds to be allo25 cated to local jurisdictions shall be 40 percent and such 


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1 allocation, notwithstanding any other provision of law, 

2 shall be conducted in all states within the United States: 

3 Provided further, That funds allocated to such urbanized 

4 areas and other areas shall not be subject to the redis5 tribution of amounts required 180 days following the date 

6 of apportionment of funds provided under this heading: 

7 Provided further, That funds apportioned under this head8 ing may be used for, but not be limited to, projects that 

9 address stormwater runoff, investments in passenger and 

10 freight rail transportation, and investments in port infra11 structure: Provided further, that each State shall use not 

12 less than 5 percent of funds apportioned to it for activities 

13 eligible under subsections 149(b) and (c) of title 23, 

14 United States Code: Provided further, That of the funds 

15 provided under this heading, $60,000,000 shall be for cap16 ital expenditures eligible under section 147 of title 23, 

17 United States Code: Provided further, That the Secretary 

18 of Transportation shall distribute such $60,000,000 as 

19 competitive discretionary grants to States, with priority 

20 given to those projects that demonstrate to his or her sat21 isfaction their ability to be completed within 2 years of 

22 enactment of this Act: Provided further, That of the funds 

23 provided under this heading, $500,000,000 shall be for in24 vestments in transportation at Indian reservations and 

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1 ter 2 of title 23, United States Code: Provided further, 

2 That of the funds identified in the preceding proviso, 

3 $320,000,000 shall be for the Indian Reservation Roads 

4 program, $100,000,000 shall be for the Park Roads and 

5 Parkways program, $70,000,000 shall be for the Forest 

6 Highway Program, and $10,000,000 shall be for the Ref7 uge Roads program: Provided further, That for invest8 ments at Indian reservations and Federal lands, priority 

9 shall be given to capital investments, and to projects and 

10 activities that can be completed within 2 years of enact11 ment of this Act: Provided further, That 1 year following 

12 the enactment of this Act, to ensure the prompt use of 

13 the $500,000,000 provided for investments at Indian res14 ervations and Federal lands, the Secretary shall have the 

15 authority to redistribute unobligated funds within the re16 spective program for which the funds were appropriated: 

17 Provided further, That up to 4 percent of the funding pro18 vided for Indian Reservation Roads may be used by the 

19 Secretary of the Interior for program management and 

20 oversight and project-related administrative expenses: Pro21 vided further, That section 134(f)(3)(C)(ii)(II) of title 23, 

22 United States Code, shall not apply to funds provided 

23 under this heading: Provided further, That the Federal 

24 share payable on account of any project or activity carried 

25 out with funds made available under this heading shall 


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AMDT. NO. 570 

1 be at the option of the recipient, and may be up to 100 

2 percent of the total cost thereof: Provided further, That 

3 funding provided under this heading shall be in addition 

4 to any and all funds provided for fiscal years 2008 and 

5 2009 in any other Act for ‘‘Federal-aid Highways’’ and 

6 shall not affect the distribution of funds provided for 

7 ‘‘Federal-aid Highways’’ in any other Act: Provided fur8 ther, That the amount made available under this heading 

9 shall not be subject to any limitation on obligations for 

10 Federal-aid highways or highway safety construction pro11 grams set forth in any Act: Provided further, That projects 

12 conducted using funds provided under this heading must 

13 comply with the requirements of subchapter IV of chapter 

14 31 of title 40, United States Code: Provided further, That 

15 section 313 of title 23, United States Code, shall apply 

16 to funds provided under this heading: Provided further, 

17 That section 1101(b) of Public Law 109–59 shall apply 

18 to funds apportioned under this heading: Provided further, 

19 That for the purposes of the definition of States for this 

20 paragraph, sections 101(a)(32) of title 23, United States 

21 Code, shall apply: Provided further, That the Adminis22 trator of the Federal Highway Administration may retain 

23 up to $12,000,000 of the funds provided under this head24 ing to carry out the function of the ‘‘Federal Highway Ad25 ministration, Limitation on Administrative Expenses’’ and 


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1 to fund the oversight by the Administrator of projects and 

2 activities carried out with funds made available to the 

3 Federal Highway Administration in this Act. 

4 FEDERAL RAILROAD ADMINISTRATION

5 SUPPLEMENTAL GRANTS TO STATES FOR INTERCITY

6 PASSENGER RAIL SERVICE

7 For an additional amount for discretionary grants to 

8 States to pay for the cost of projects described in para9 graphs (2)(A) and (2)(B) of section 24401 of title 49, 

10 United States Code, and subsection (b) of section 24105 

11 of such title, $250,000,000: Provided, That to be eligible 

12 for assistance under this paragraph, the specific project 

13 must be on a Statewide Transportation Improvement Plan 

14 at the time of the application to qualify: Provided further, 

15 That the Secretary of Transportation shall give priority 

16 to projects that demonstrate an ability to be completed 

17 within 2 years of enactment of this Act, and to projects 

18 that improve the safety and reliability of intercity pas19 senger trains: Provided further, That the Federal share 

20 payable of the costs for which a grant is made under this 

21 heading shall be 100 percent: Provided further, That 

22 projects conducted using funds provided under this head23 ing must comply with the requirements of subchapter IV 

24 of chapter 31 of title 40, United States Code: Provided 

25 further, That section 24405(a) of title 49, United States 


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1 Code, shall apply to funds provided under this heading: 

2 Provided further, That the Administrator of the Federal 

3 Railroad Administration may retain and transfer to ‘‘Fed4 eral Railroad Administration, Safety and Operations’’ up 

5 to one-quarter of 1 percent of the funds provided under 

6 this heading to fund the award and oversight by the Ad7 ministrator of grants made under this heading. 

8 SUPPLEMENTAL CAPITAL GRANTS TO THE NATIONAL

9 RAILROAD PASSENGER CORPORATION

10 For an additional amount for the immediate invest11 ment in capital projects necessary to maintain and im12 prove national intercity passenger rail service, including 

13 the rehabilitation of rolling stock, $850,000,000: Provided, 

14 That funds made available under this heading shall be al15 located directly to the National Railroad Passenger Cor16 poration: Provided further, That the Board of Directors 

17 of the corporation shall take measures to ensure that pri18 ority is given to capital projects that expand passenger 

19 rail capacity: Provided further, That the Board of Direc20 tors shall take measures to ensure that projects funded 

21 under this heading shall be completed within 2 years of 

22 enactment of this Act, and shall serve to supplement and 

23 not supplant planned expenditures for such activities from 

24 other Federal, State, local and corporate sources: Provided 

25 further, That said Board of Directors shall certify to the 


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1 House and Senate Committees on Appropriations in writ2 ing their compliance with the preceding proviso: Provided 

3 further, That section 24305(f) of title 49, United States 

4 Code, shall apply to funds provided under this heading: 

5 Provided further, That not more than 50 percent of the 

6 funds provided under this heading may be used for capital 

7 projects along the Northeast Corridor. 

8 HIGH-SPEED RAIL CORRIDOR PROGRAM

9 To make grants for high-speed rail projects under the 

10 provisions of section 26106 of title 49, United States 

11 Code, $2,000,000,000, to remain available until Sep12 tember 30, 2011: Provided, That the Federal share pay13 able of the costs for which a grant is made under this 

14 heading shall be 100 percent: Provided further, That the 

15 Administrator of the Federal Railroad Administration 

16 may retain and transfer to ‘‘Federal Railroad Administra17 tion, Safety and Operations’’ up to one-quarter of 1 per18 cent of the funds provided under this heading to fund the 

19 award and oversight by the Administrator of grants made 

20 under this paragraph. 

21 FEDERAL TRANSIT ADMINISTRATION

22 SUPPLEMENTAL GRANTS FOR PUBLIC TRANSIT

23 INVESTMENT

24 For an additional amount for capital expenditures 

25 authorized under section 5302(a)(1) of title 49, United 


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1 States Code, $8,400,000,000: Provided, That the Sec2 retary of Transportation shall apportion 71 percent of the 

3 funds apportioned under this heading using the formula 

4 set forth in subsections (a) through (c) of section 5336 

5 of title 49, United States Code, 19 percent of the funds 

6 apportioned under this heading using the formula set 

7 forth in section 5340 of such title, and 10 percent of the 

8 funding apportioned under this heading using the formula 

9 set forth in subsection 5311(c) of such title: Provided fur10 ther, That 180 days following the date of such apportion11 ment, the Secretary shall withdraw from each grantee an 

12 amount equal to 50 percent of the funds awarded to that 

13 grantee less the amount of funding obligated, and the Sec14 retary shall redistribute such amounts to other grantees 

15 that have had no funds withdrawn under this proviso uti16 lizing whatever method he or she deems appropriate to en17 sure that all funds provided under this paragraph shall 

18 be utilized promptly: Provided further, That 1 year fol19 lowing the date of such apportionment, the Secretary shall 

20 withdraw from each grantee any unobligated funds and 

21 transfer such funds to ‘‘Supplemental Discretionary 

22 Grants for a National Surface Transportation System’’: 

23 Provided further, That at the request of a grantee, the 

24 Secretary of Transportation may provide an extension of 

25 such 1-year periods if he or she feels satisfied that the 


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1 grantee has encountered an unworkable bidding environ2 ment or other extenuating circumstances: Provided fur3 ther, That before granting such an extension, the Sec4 retary shall send a letter to the House and Senate Com5 mittees on Appropriations that provides a thorough jus6 tification for the extension: Provided further, That of the 

7 funds apportioned using the formula set forth in sub8 section 5311(c) of title 49, United States Code, 2 percent 

9 shall be made available for section 5311(c)(1): Provided 

10 further, That of the funding provided under this heading, 

11 $200,000,000 shall be distributed as discretionary grants 

12 to public transit agencies for capital investments that will 

13 assist in reducing the energy consumption or greenhouse 

14 gas emissions of their public transportation systems: Pro15 vided further, That for such grants on energy-related in16 vestments, priority shall be given to projects based on the 

17 total energy savings that are projected to result from the 

18 investment, and projected energy savings as a percentage 

19 of the total energy usage of the public transit agency: Pro20 vided further, That the Federal share of the costs for 

21 which any grant is made under this heading shall be at 

22 the option of the recipient, and may be up to 100 percent: 

23 Provided further, That the amount made available under 

24 this heading shall not be subject to any limitation on obli25 gations for transit programs set forth in any Act: Provided 


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1 further, That section 1101(b) of Public Law 109–59 shall 

2 apply to funds apportioned under this heading: Provided 

3 further, That the funds appropriated under this heading 

4 shall be subject to subsection 5323(j) and section 5333 

5 of title 49, United States Code as well as sections 5304 

6 and 5305 of said title, as appropriate, but shall not be 

7 comingled with funds available under the Formula and 

8 Bus Grants account: Provided further, That the Adminis9 trator of the Federal Transit Administration may retain 

10 up to $3,000,000 of the funds provided under this heading 

11 to carry out the function of ‘‘Federal Transit Administra12 tion, Administrative Expenses’’ and to fund the oversight 

13 of grants made under this heading by the Administrator. 

14 MARITIME ADMINISTRATION

15 SUPPLEMENTAL GRANTS FOR ASSISTANCE TO SMALL

16 SHIPYARDS

17 To make grants to qualified shipyards as authorized 

18 under section 3506 of Public Law 109–163 or section 

19 54101 of title 46, United States Code, $100,000,000: Pro20 vided, That the Secretary of Transportation shall institute 

21 measures to ensure that funds provided under this head22 ing shall be obligated within 180 days of the date of their 

23 distribution: Provided further, That the Maritime Adminis24 trator may retain and transfer to ‘‘Maritime Administra25 tion, Operations and Training’’ up to 2 percent of the 


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1 funds provided under this heading to fund the award and 

2 oversight by the Administrator of grants made under this 

3 heading. 

4 OFFICE OF INSPECTOR GENERAL

5 SALARIES AND EXPENSES

6 For an additional amount for necessary expenses of 

7 the Office of Inspector General to carry out the provisions 

8 of the Inspector General Act of 1978, as amended, 

9 $7,750,000, to remain available until September 30, 2011, 

10 and an additional $12,250,000 for such purposes, to re11 main available until September 30, 2012: Provided, That 

12 the funding made available under this heading shall be 

13 used for conducting audits and investigations of projects 

14 and activities carried out with funds made available in this 

15 Act to the Department of Transportation and to the Na16 tional Railroad Passenger Corporation: Provided further, 

17 That the Inspector General shall have all necessary au18 thority, in carrying out the duties specified in the Inspec19 tor General Act, as amended (5 U.S.C. App. 3), to inves20 tigate allegations of fraud, including false statements to 

21 the Government (18 U.S.C. 1001), by any person or entity 

22 that is subject to regulation by the Department. 


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1 GENERAL PROVISION—DEPARTMENT OF 

2 TRANSPORTATION 

3 SEC. 1201. Section 5309(g)(4)(A) of title 49, United 

4 States Code, is amended by striking ‘‘or an amount equiv5 alent to the last 3 fiscal years of funding allocated under 

6 subsections (m)(1)(A) and (m)(2)(A)(ii)’’ and inserting 

7 ‘‘or the sum of the funds available for the next 3 fiscal 

8 years beyond the current fiscal year, assuming an annual 

9 growth of the program of 10 percent’’. 

10 DEPARTMENT OF HOUSING AND URBAN 

11 DEVELOPMENT 

12 NATIVE AMERICAN HOUSING BLOCK GRANTS

13 For an additional amount for ‘‘Native American 

14 Housing Block Grants’’, as authorized under title I of the 

15 Native American Housing Assistance and Self-Determina16 tion Act of 1996 (‘‘NAHASDA’’) (25 U.S.C. 4111 et 

17 seq.), $510,000,000, to remain available until September 

18 30, 2011: Provided, That $255,000,000 of the amount 

19 provided under this heading shall be distributed according 

20 to the same funding formula used in fiscal year 2008: Pro21 vided further, That in selecting projects to be funded, re22 cipients shall give priority to projects that can award con23 tracts based on bids within 180 days from the date that 

24 funds are available to recipients: Provided further, That 

25 the Secretary shall obligate $255,000,000 of the amount 


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1 provided under this heading for competitive grants to eligi2 ble entities that apply for funds authorized under 

3 NAHASDA: Provided further, That in awarding competi4 tive funds, the Secretary shall give priority to projects that 

5 will spur construction and rehabilitation and will create 

6 employment opportunities for low-income and unemployed 

7 persons: Provided further, That recipients of funds under 

8 this heading shall obligate 100 percent of such funds with9 in 1 year of the date of enactment of this Act, expend 

10 at least 50 percent of such funds within 2 years of the 

11 date on which funds become available to such jurisdictions 

12 for obligation, and expend 100 percent of such funds with13 in 3 years of such date: Provided further, That if a recipi14 ent fails to comply with either the 1-year obligation re15 quirement or the 2-year expenditure requirement, the Sec16 retary shall recapture all remaining funds awarded to the 

17 recipient and reallocate such funds to recipients that are 

18 in compliance with those requirements: Provided further, 

19 That if a recipient fails to comply with the 3-year expendi20 ture requirement, the Secretary shall recapture the bal21 ance of the funds awarded to the recipient: Provided fur22 ther, That, notwithstanding any other provision of this 

23 paragraph, the Secretary may institute measures to en24 sure participation in the formula and competitive alloca25 tion of funds provided under this paragraph by any housVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00211 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ing entity eligible to receive funding under title VIII of 

2 NAHASDA (25 U.S.C. 4221 et seq.): Provided further, 

3 That in administering funds provided in this heading, the 

4 Secretary may waive any provision of any statute or regu5 lation that the Secretary administers in connection with 

6 the obligation by the Secretary or the use by the recipient 

7 of these funds except for requirements imposed by this 

8 heading and requirements related to fair housing, non9 discrimination, labor standards, and the environment, 

10 upon a finding that such waiver is required to facilitate 

11 the timely use of such funds and would not be inconsistent 

12 with the overall purpose of the statute or regulation: Pro13 vided further, That, of the funds made available under this 

14 heading, up to 1 percent shall be available for staffing, 

15 training, technical assistance, technology, monitoring, re16 search and evaluation activities: Provided further, That 

17 any funds made available under this heading used by the 

18 Secretary for personnel expenses shall be transferred to 

19 and merged with funding provided to ‘‘Personnel Com20 pensation and Benefits, Office of Public and Indian Hous21 ing’’: Provided further, That any funds made available 

22 under this heading used by the Secretary for training or 

23 other administrative expenses shall be transferred to and 

24 merged with funding provided to ‘‘Administration, Oper25 ations, and Management’’, for non-personnel expenses of 


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1 the Department of Housing and Urban Development: Pro2 vided further, That any funds made available under this 

3 heading used by the Secretary for technology shall be 

4 transferred to and merged with the funding provided to 

5 ‘‘Working Capital Fund’’. 

6 PUBLIC HOUSING CAPITAL FUND

7 For an additional amount for the ‘‘Public Housing 

8 Capital Fund’’ to carry out capital and management ac9 tivities for public housing agencies, as authorized under 

10 section 9 of the United States Housing Act of 1937 (42 

11 U.S.C. 1437g) (the ‘‘Act’’), $5,000,000,000, to remain 

12 available until September 30, 2011: Provided, That the 

13 Secretary of Housing and Urban Development shall allo14 cate $3,000,000,000 of this amount by the formula au15 thorized under section 9(d)(2) of the Act, except that the 

16 Secretary may determine not to allocate funding to public 

17 housing agencies currently designated as troubled or to 

18 public housing agencies that elect not to accept such fund19 ing: Provided further, That the Secretary shall make avail20 able $2,000,000,000 by competition for priority invest21 ments, including investments that leverage private sector 

22 funding or financing for renovations and energy conserva23 tion retrofit investments: Provided further, That public 

24 housing agencies shall prioritize capital projects that are 

25 already underway or included in the 5-year capital fund 


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1 plans required by the Act (42 U.S.C. 1437c–1(a)): Pro2 vided further, That in allocating competitive grants under 

3 this heading, the Secretary shall give priority consider4 ation to the rehabilitation of vacant rental units: Provided 

5 further, That notwithstanding any other provision of law, 

6 (1) funding provided herein may not be used for operating 

7 or rental assistance activities, and (2) any restriction of 

8 funding to replacement housing uses shall be inapplicable: 

9 Provided further, That notwithstanding any other provi10 sion of law, the Secretary shall institute measures to en11 sure that funds provided under this heading shall serve 

12 to supplement and not supplant expenditures from other 

13 Federal, State, or local sources or funds independently 

14 generated by the grantee: Provided further, That notwith15 standing section 9(j), public housing agencies shall obli16 gate 100 percent of the funds within 1 year of the date 

17 of enactment of this Act, shall expend at least 60 percent 

18 of funds within 2 years of the date on which funds become 

19 available to the agency for obligation, and shall expend 

20 100 percent of the funds within 3 years of such date: Pro21 vided further, That if a public housing agency fails to com22 ply with either the 1-year obligation requirement or the 

23 2-year expenditure requirement, the Secretary shall recap24 ture all remaining funds awarded to the public housing 

25 agency and reallocate such funds to agencies that are in 


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1 compliance with those requirements: Provided further, 

2 That if a public housing agency fails to comply with the 

3 3-year expenditure requirement, the Secretary shall recap4 ture the balance of the funds awarded to the public hous5 ing agency: Provided further, That in administering funds 

6 provided in this heading, the Secretary may waive any pro7 vision of any statute or regulation that the Secretary ad8 ministers in connection with the obligation by the Sec9 retary or the use by the recipient of these funds except 

10 for requirements imposed by this heading and require11 ments related to conditions on use of funds for develop12 ment and modernization, fair housing, non-discrimination, 

13 labor standards, and the environment, upon a finding that 

14 such waiver is required to facilitate the timely use of such 

15 funds and would not be inconsistent with the overall pur16 pose of the statute or regulation: Provided further, That 

17 of the funds made available under this heading, up to 1 

18 percent shall be available for staffing, training, technical 

19 assistance, technology, monitoring, research and evalua20 tion activities: Provided further, That any funds made 

21 available under this heading used by the Secretary for per22 sonnel expenses shall be transferred to and merged with 

23 funding provided to ‘‘Personnel Compensation and Bene24 fits, Office of Public and Indian Housing’’: Provided fur25 ther, That any funds made available under this heading 


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1 used by the Secretary for training or other administrative 

2 expenses shall be transferred to and merged with funding 

3 provided to ‘‘Administration, Operations, and Manage4 ment’’, for non-personnel expenses of the Department of 

5 Housing and Urban Development: Provided further, That 

6 any funds made available under this heading used by the 

7 Secretary for technology shall be transferred to and 

8 merged with the funding provided to ‘‘Working Capital 

9 Fund’’. 

10 HOME INVESTMENT PARTNERSHIPS PROGRAM

11 For an additional amount for the ‘‘HOME Invest12 ment Partnerships Program’’ as authorized under title II 

13 of the Cranston-Gonzalez National Affordable Housing 

14 Act (the ‘‘Act’’), $250,000,000, to remain available until 

15 September 30, 2011: Provided, That except as specifically 

16 provided herein, funds provided under this heading shall 

17 be distributed pursuant to the formula authorized by sec18 tion 217 of the Act: Provided further, That the Secretary 

19 may establish a minimum grant size: Provided further, 

20 That participating jurisdictions shall obligate 100 percent 

21 of the funds within 1 year of the date of enactment of 

22 this Act, shall expend at least 60 percent of funds within 

23 2 years of the date on which funds become available to 

24 the participating jurisdiction for obligation and shall ex25 pend 100 percent of the funds within 3 years of such date: 


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AMDT. NO. 570 

1 Provided further, That if a participating jurisdiction fails 

2 to comply with either the 1-year obligation requirement 

3 or the 2-year expenditure requirement, the Secretary shall 

4 recapture all remaining funds awarded to the participating 

5 jurisdiction and reallocate such funds to participating ju6 risdictions that are in compliance with those requirements: 

7 Provided further, That if a participating jurisdiction fails 

8 to comply with the 3-year expenditure requirement, the 

9 Secretary shall recapture the balance of the funds awarded 

10 to the participating jurisdiction: Provided further, That in 

11 administering funds under this heading, the Secretary 

12 may waive any provision of any statute or regulation that 

13 the Secretary administers in connection with the obliga14 tion by the Secretary or the use by the recipient of these 

15 funds except for requirements imposed by this heading 

16 and requirements related to fair housing, non-discrimina17 tion, labor standards and the environment, upon a finding 

18 that such waiver is required to facilitate the timely use 

19 of such funds and would not be inconsistent with the over20 all purpose of the statute or regulation: Provided further, 

21 That the Secretary may use funds provided under this 

22 heading to provide incentives to grantees to use funding 

23 for investments in energy efficiency and green building 

24 technology: Provided further, That such incentives may in25 clude allocation of up to 20 percent of funds made availVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00217 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 able under this heading other than pursuant to the for2 mula authorized by section 217 of the Act: Provided fur3 ther, That, of the funds made available under this heading, 

4 up to 1 percent shall be available for staffing, training, 

5 technical assistance, technology, monitoring, research and 

6 evaluation activities: Provided further, That any funds 

7 made available under this heading used by the Secretary 

8 for personnel expenses shall be transferred to and merged 

9 with funding provided to ‘‘Personnel Compensation and 

10 Benefits, Office of Community Planning and Develop11 ment’’: Provided further, That any funds made available 

12 under this heading used by the Secretary for training or 

13 other administrative expenses shall be transferred to and 

14 merged with funding provided to ‘‘Administration, Oper15 ations, and Management’’, for non-personnel expenses of 

16 the Department of Housing and Urban Development: Pro17 vided further, That any funds made available under this 

18 heading used by the Secretary for technology shall be 

19 transferred to and merged with the funding provided to 

20 ‘‘Working Capital Fund’’. 

21 For an additional amount for capital investments in 

22 low-income housing tax credit projects, $2,000,000,000, to 

23 remain available until September 30, 2011: Provided, 

24 That the funds shall be allocated to States under the 

25 HOME program under this Heading shall be made availVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00218 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 able to State housing finance agencies in an amount total2 ing $2,000,000,000, subject to any changes made to a 

3 State allocation for the benefit of a State by the Secretary 

4 of Housing and Urban Development for areas that have 

5 suffered from disproportionate job loss and foreclosure: 

6 Provided further, That the Secretary, in consultation with 

7 the States, shall determine the amount of funds each State 

8 shall have available under HOME: Provided further, That 

9 the State housing finance agencies (including for purposes 

10 throughout this heading any entity that is responsible for 

11 distributing low-income housing tax credits) or as appro12 priate as an entity as a gap financer, shall distribute these 

13 funds competitively under this heading to housing devel14 opers for projects eligible for funding (such terms includ15 ing those who may have received funding) under the low16 income housing tax credit program as provided under sec17 tion 42 of the I.R.C. of 1986, with a review of both the 

18 decisionmaking and process for the award by the Sec19 retary of Housing and Urban Development: Provided fur20 ther, That funds under this heading must be awarded by 

21 State housing finance agencies within 120 days of enact22 ment of the Act and obligated by the developer of the low23 income housing tax credit project within one year of the 

24 date of enactment of this Act, shall expend 75 percent of 

25 the funds within two years of the date on which the funds 


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1 become available, and shall expend 100 percent of the 

2 funds within 3 years of such date: Provided further, That 

3 failure by a developer to expend funds within the param4 eters required within the previous proviso shall result in 

5 a redistribution of these funds by a State housing finance 

6 agency or by the Secretary if there is a more deserving 

7 project in another jurisdiction: Provided further, That 

8 projects awarded tax credits within 3 years prior to the 

9 date of enactment of this Act shall be eligible for funding 

10 under this heading: Provided further, That as part of the 

11 review, the Secretary shall ensure equitable distribution of 

12 funds and an appropriate balance in addressing the needs 

13 of urban and rural communities with a special priority on 

14 areas that have suffered from excessive job loss and fore15 closures: Provided further, That State housing finance 

16 agencies shall give priority to projects that require an ad17 ditional share of Federal funds in order to complete an 

18 overall funding package, and to projects that are expected 

19 to be completed within 3 years of enactment: Provided fur20 ther, That any assistance provided to an eligible low-in21 come housing tax credit project under this heading shall 

22 be made in the same manner and be subject to the same 

23 limitations (including rent, income, and use restrictions) 

24 as an allocation of the housing credit amount allocated 

25 by the State housing finance agency under section 42 of 


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1 the I.R.C. of 1986, except that such assistance shall not 

2 be limited by, or otherwise affect (except as provided in 

3 subsection (h)(3)(J) of such section), the State housing 

4 finance agency applicable to such agency: Provided further, 

5 That the State housing finance agency shall perform asset 

6 management functions to ensure compliance with section 

7 42 of the I.R.C. of 1986, and the long term viability of 

8 buildings funded by assistance under this heading: Pro9 vided further, That the term basis (as such term is defined 

10 in such section 42) of a qualified low-income housing tax 

11 credit building receiving assistance under this heading 

12 shall not be reduced by the amount of any grant described 

13 under this heading: Provided further, That the Secretary 

14 shall collect all information related to the award of Fed15 eral funds from state housing finance agencies and estab16 lish an internet site that shall identify all projects selected 

17 for an award, including the amount of the award as well 

18 as the process and all information that was used to make 

19 the award decision. 

20 HOMELESSNESS PREVENTION FUND

21 For homelessness prevention activities, 

22 $1,500,000,000, to remain available until September 30, 

23 2011: Provided, That funds provided under this heading 

24 shall be used for the provision of short-term or medium25 term rental assistance; housing relocation and stabilizaVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00221 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 tion services including housing search, mediation or out2 reach to property owners, credit repair, security or utility 

3 deposits, utility payments, rental assistance for a final 

4 month at a location, and moving cost assistance; or other 

5 appropriate homelessness prevention activities: Provided 

6 further, That grantees receiving such assistance shall col7 lect data on the use of the funds awarded and persons 

8 served with this assistance in the Homeless Management 

9 Information System (HMIS) or other comparable data10 base: Provided further, That grantees may use up to 5 per11 cent of any grant for administrative costs: Provided fur12 ther, That funding made available under this heading shall 

13 be allocated to eligible grantees (as defined and designated 

14 in sections 411 and 412 of subtitle B of title IV of the 

15 McKinney-Vento Homeless Assistance Act, (the ‘‘Act’’)) 

16 pursuant to the formula authorized by section 413 of the 

17 Act: Provided further, That the Secretary may establish 

18 a minimum grant size: Provided further, That grantees 

19 shall expend at least 75 percent of funds within 2 years 

20 of the date that funds became available to them for obliga21 tion, and 100 percent of funds within 3 years of such date, 

22 and the Secretary may recapture unexpended funds in vio23 lation of the 2-year expenditure requirement and reallo24 cate such funds to grantees in compliance with that re25 quirement: Provided further, That the Secretary may 


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AMDT. NO. 570 

1 waive statutory or regulatory provisions (except provisions 

2 for fair housing, nondiscrimination, labor standards, and 

3 the environment) necessary to facilitate the timely expend4 iture of funds: Provided further, That the Secretary shall 

5 publish a notice to establish such requirements as may be 

6 necessary to carry out the provisions of this section within 

7 30 days of enactment of the Act and that this notice shall 

8 take effect upon issuance: Provided further, That of the 

9 funds provided under this heading, up to 1.5 percent shall 

10 be available for staffing, training, technical assistance, 

11 technology, monitoring, research and evaluation activities: 

12 Provided further, That any funds made available under 

13 this heading used by the Secretary for personnel expense 

14 shall be transferred to and merged with funding provided 

15 to ‘‘Community Planning and Development Personnel 

16 Compensation and Benefits’’: Provided further, That any 

17 funds made available under this heading used by the Sec18 retary for training or other administrative expenses shall 

19 be transferred to and merged with funding provided to 

20 ‘‘Administration, Operations, and Management’’ for non21 personnel expenses of the Department of Housing and 

22 Urban Development: Provided further, That any funding 

23 made available under this heading used by the Secretary 

24 for technology shall be transferred to and merged with the 

25 funding provided to ‘‘Working Capital Fund.’’ 


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AMDT. NO. 570 

1 ASSISTED HOUSING STABILITY AND ENERGY AND

2 GREEN RETROFIT INVESTMENTS

3 For assistance 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 as amended (42 U.S.C. 1437f), 

9 $2,250,000,000, of which $2,132,000,000 shall be for an 

10 additional amount for paragraph (1) under the heading 

11 ‘‘Project-Based Rental Assistance’’ in Public Law 110– 

12 161 for payments to owners for 12-month periods, and 

13 of which $118,000,000 shall be for grants or loans for 

14 energy retrofit and green investments in such assisted 

15 housing: Provided, That projects funded with grants or 

16 loans provided under this heading must comply with the 

17 requirements of subchapter IV of chapter 31 of title 40, 

18 United States Code: Provided further, That such grants 

19 or loans shall be provided through the existing policies, 

20 procedures, contracts, and transactional infrastructure of 

21 the authorized programs administered by the Office of Af22 fordable Housing Preservation of the Department of 

23 Housing and Urban Development, on such terms and con24 ditions as the Secretary of Housing and Urban Develop25 ment deems appropriate to ensure the maintenance and 


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AMDT. NO. 570 

1 preservation of the property, the continued operation and 

2 maintenance of energy efficiency technologies, and the 

3 timely expenditure of funds: Provided further, That the 

4 Secretary may provide incentives to owners to undertake 

5 energy or green retrofits as a part of such grant or loan 

6 terms, including, but not limited to, investment fees to 

7 cover oversight and implementation costs incurred by said 

8 owner, or to encourage job creation for low-income or very 

9 low-income individuals: Provided further, That the grants 

10 or loans shall include a financial assessment and physical 

11 inspection of such property: Provided further, That eligible 

12 owners must have at least a satisfactory management re13 view rating, be in substantial compliance with applicable 

14 performance standards and legal requirements, and com15 mit to an additional period of affordability determined by 

16 the Secretary, but of not fewer than 15 years: Provided 

17 further, That the Secretary shall undertake appropriate 

18 underwriting and oversight with respect to grant and loan 

19 transactions and may set aside up to 5 percent of the 

20 funds made available under this heading for grants or 

21 loans for such purpose: Provided further, That the Sec22 retary shall take steps necessary to ensure that owners 

23 receiving funding for energy and green retrofit invest24 ments under this heading shall expend such funding with25 in 2 years of the date they received the funding: Provided 


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AMDT. NO. 570 

1 further, That the Secretary may waive or modify statutory 

2 or regulatory requirements with respect to any existing 

3 grant, loan, or insurance mechanism authorized to be used 

4 by the Secretary to enable or facilitate the accomplishment 

5 of investments supported with funds made available under 

6 this heading for grants or loans: Provided further, That 

7 of the funds provided under this heading, up to 1.5 per8 cent shall be available for staffing, training, technical as9 sistance, technology, monitoring, research and evaluation 

10 activities: Provided further, That funding made available 

11 under this heading and used by the Secretary for per12 sonnel expenses shall be transferred to and merged with 

13 funding provided to ‘‘Housing Compensation and Bene14 fits’’: Provided further, That any funding made available 

15 under this heading used by the Secretary for training and 

16 other administrative expenses shall be transferred to and 

17 merged with funding provided to ‘‘Administration, Oper18 ations and Management’’ for non-personnel expenses of 

19 the Department of Housing and Urban Development: Pro20 vided further, That any funding made available under this 

21 heading used by the Secretary for technology shall be 

22 transferred to and merged with funding provided to 

23 ‘‘Working Capital Fund.’’ 


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AMDT. NO. 570 

1 OFFICE OF HEALTHY HOMES AND LEAD HAZARD

2 CONTROL

3 For an additional amount for the ‘‘Lead Hazard Re4 duction’’, as authorized by section 1011 of the Residential 

5 Lead-Based Paint Hazard Reduction Act of 1992, 

6 $100,000,000, to remain available until September 30, 

7 2011: Provided, That funds shall be awarded first to appli8 cant jurisdictions which had applied under the Lead9 Based Paint Hazard Control Grant Program Notice of 

10 Funding Availability for fiscal year 2008, and were found 

11 in the application review to be qualified for award, but 

12 were not awarded because of funding limitations, and that 

13 any funds which remain after reservation of funds for such 

14 grants shall be added to the amount of funds to be award15 ed under the Lead-Based Paint Hazard Control Grant 

16 Program Notice of Funding Availability for fiscal year 

17 2009: Provided further, That each applicant jurisdiction 

18 for the Lead-Based Paint Hazard control Grant Program 

19 Notice of Funding Availability for fiscal year 2009 shall 

20 submit a detailed plan and strategy that demonstrates 

21 adequate capacity that is acceptable to the Secretary to 

22 carry out the proposed use of funds: Provided further, 

23 That recipients of funds under this heading shall obligate 

24 100 percent of such funds within 1 year of the date of 

25 enactment of this Act, expend at least 75 percent of such 


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1 funds within 2 years of the date on which funds become 

2 available to such jurisdictions for obligation, and expend 

3 100 percent of such funds within 3 years of such date: 

4 Provided further, That if a recipient fails to comply with 

5 either the 1-year obligation requirement or the 2-year ex6 penditure requirement, the Secretary shall recapture all 

7 remaining funds awarded to the recipient and reallocate 

8 such funds to recipients that are in compliance with those 

9 requirements: Provided further, That if a recipient fails to 

10 comply with the 3-year expenditure requirement, the Sec11 retary shall recapture the balance of the funds awarded 

12 to the recipient: Provided further, That in administering 

13 funds provided in this heading, the Secretary may waive 

14 any provision of any statute or regulation that the Sec15 retary administers in connection with the obligation by the 

16 Secretary or the use by the recipient of these funds except 

17 for requirements imposed by this heading and require18 ments related to fair housing, nondiscrimination, labor 

19 standards, and the environment, upon a finding that such 

20 waiver is required to facilitate the timely use of such funds 

21 and would not be inconsistent with the overall purpose of 

22 the statute or regulation: Provided further, That, of the 

23 funds made available under this heading, up to 1 percent 

24 shall be available for staffing, training, technical assist25 ance, technology, monitoring, research and evaluation acVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00228 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 tivities: Provided further, That any funds made available 

2 under this heading used by the Secretary for personnel 

3 expenses shall be transferred to and merged with funding 

4 provided to ‘‘Personnel Compensation and Benefits, Office 

5 of Healthy Homes and Lead Hazard Control’’: Provided 

6 further, That any funds made available under this heading 

7 used by the Secretary for training or other administrative 

8 expenses shall be transferred to and merged with funding 

9 provided to ‘‘Administration, Operations, and Manage10 ment’’, for non-personnel expenses of the Department of 

11 Housing and Urban Development: Provided further, That 

12 any funds made available under this heading used by the 

13 Secretary for technology shall be transferred to and 

14 merged with the funding provided to ‘‘Working Capital 

15 Fund’’. 

16 OFFICE OF INSPECTOR GENERAL

17 For an additional amount for the necessary salaries 

18 and expenses of the Office of Inspector General in car19 rying out the Inspector General Act of 1978, as amended, 

20 $2,750,000, to remain available until September 30, 2011, 

21 and an additional $12,250,000 for such purposes, to re22 main available until September 30, 2012: Provided, That 

23 the Inspector General shall have independent authority 

24 over all 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 

14 seq.) 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 

25 of record involved (as determined by the Secretary, 


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1 such as an ambulatory electronic health record for 

2 office-based physicians or an inpatient hospital elec3 tronic health record for hospitals). 

4 ‘‘(2) ENTERPRISE INTEGRATION.—The term 

5 ‘enterprise integration’ means the electronic linkage 

6 of health care providers, health plans, the govern7 ment, and other interested parties, to enable the 

8 electronic exchange and use of health information 

9 among all the components in the health care infra10 structure in accordance with applicable law, and 

11 such term includes related application protocols and 

12 other related standards. 

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, ambu19 latory surgical center described in section 1833(i) of 

20 the Social Security Act, emergency medical services 

21 provider, Federally qualified health center, group 

22 practice (as defined in section 1877(h)(4) of the So23 cial Security Act), a pharmacist, a pharmacy, a lab24 oratory, a physician (as defined in section 1861(r) of 

25 the Social Security Act), a practitioner (as described 


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1 in section 1842(b)(18)(C) of the Social Security 

2 Act), a provider operated by, or under contract with, 

3 the Indian Health Service or by an Indian tribe (as 

4 defined in the Indian Self-Determination and Edu5 cation Assistance Act), tribal organization, or urban 

6 Indian organization (as defined in section 4 of the 

7 Indian Health Care Improvement Act), a rural 

8 health clinic, a covered entity under section 340B, 

9 and any other category of facility or clinician deter10 mined appropriate by the Secretary. 

11 ‘‘(4) HEALTH INFORMATION.—The term ‘health 

12 information’ has the meaning given such term in 

13 section 1171(4) of the Social Security Act. 

14 ‘‘(5) HEALTH INFORMATION TECHNOLOGY.— 

15 The term ‘health information technology’ includes 

16 hardware, software, integrated technologies and re17 lated licenses, intellectual property, upgrades, and 

18 packaged solutions sold as services for use by health 

19 care entities for the electronic creation, maintenance, 

20 access or exchange of health information. 

21 ‘‘(6) HEALTH PLAN.—The term ‘health plan’ 

22 has the meaning given such term in section 1171(5) 

23 of the Social Security Act. 


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1 ‘‘(7) HIT POLICY COMMITTEE.—The term ‘HIT 

2 Policy Committee’ means such Committee estab3 lished under section 3002(a). 

4 ‘‘(8) HIT STANDARDS COMMITTEE.—The term 

5 ‘HIT Standards Committee’ means such Committee 

6 established under section 3003(a). 

7 ‘‘(9) INDIVIDUALLY IDENTIFIABLE HEALTH IN8 FORMATION.—The term ‘individually identifiable 

9 health information’ has the meaning given such term 

10 in section 1171(6) of the Social Security Act. 

11 ‘‘(10) LABORATORY.—The term ‘laboratory’ 

12 has the meaning given such term in section 353(a). 

13 ‘‘(11) NATIONAL COORDINATOR.—The term 

14 ‘National Coordinator’ means the head of the Office 

15 of the National Coordinator for Health Information 

16 Technology established under section 3001(a). 

17 ‘‘(12) PHARMACIST.—The term ‘pharmacist’ 

18 has the meaning given such term in section 804(2) 

19 of the Federal Food, Drug, and Cosmetic Act. 

20 ‘‘(13) QUALIFIED ELECTRONIC HEALTH

21 RECORD.—The term ‘qualified electronic health 

22 record’ means an electronic record of health-related 

23 information on an individual that— 


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1 ‘‘(A) includes patient demographic and 

2 clinical health information, such as medical his3 tory and problem lists; and 

4 ‘‘(B) has the capacity— 

5 ‘‘(i) to provide clinical decision sup6 port; 

7 ‘‘(ii) to support physician order entry; 

8 ‘‘(iii) to capture and query informa9 tion relevant to health care quality; and 

10 ‘‘(iv) to exchange electronic health in11 formation with, and integrate such infor12 mation from other sources. 

13 ‘‘(14) STATE.—The term ‘State’ means each of 

14 the several States, the District of Columbia, Puerto 

15 Rico, the Virgin Islands, Guam, American Samoa, 

16 and the Northern Mariana Islands. 

17 ‘‘Subtitle A—Promotion of Health 

18 Information Technology 

19 ‘‘SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR 

20 HEALTH INFORMATION TECHNOLOGY. 

21 ‘‘(a) ESTABLISHMENT.—There is established within 

22 the Department of Health and Human Services an Office 

23 of the National Coordinator for Health Information Tech24 nology (referred to in this section as the ‘Office’). The Of25 fice shall be headed by a National Coordinator who shall 


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1 be appointed by the Secretary and shall report directly to 

2 the Secretary. 

3 ‘‘(b) PURPOSE.—The National Coordinator shall per4 form the duties under subsection (c) in a manner con5 sistent with the development of a nationwide health infor6 mation technology infrastructure that allows for the elec7 tronic use and exchange of information and that— 

8 ‘‘(1) ensures that each patient’s health informa9 tion is secure and protected, in accordance with ap10 plicable law; 

11 ‘‘(2) improves health care quality, reduces med12 ical errors, and advances the delivery of patient-cen13 tered medical care; 

14 ‘‘(3) reduces health care costs resulting from 

15 inefficiency, medical errors, inappropriate care, du16 plicative care, and incomplete information; 

17 ‘‘(4) provides appropriate information to help 

18 guide medical decisions at the time and place of 

19 care; 

20 ‘‘(5) ensures the inclusion of meaningful public 

21 input in such development of such infrastructure; 

22 ‘‘(6) improves the coordination of care and in23 formation among hospitals, laboratories, physician 

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1 structure for the secure and authorized exchange of 

2 health care information; 

3 ‘‘(7) improves public health activities and facili4 tates the early identification and rapid response to 

5 public health threats and emergencies, including bio6 terror events and infectious disease outbreaks; 

7 ‘‘(8) facilitates health and clinical research and 

8 health care quality; 

9 ‘‘(9) promotes early detection, prevention, and 

10 management of chronic diseases; 

11 ‘‘(10) promotes a more effective marketplace, 

12 greater competition, greater systems analysis, in13 creased consumer choice, and improved outcomes in 

14 health care services; and 

15 ‘‘(11) improves efforts to reduce health dispari16 ties. 

17 ‘‘(c) DUTIES OF THE NATIONAL COORDINATOR.— 

18 ‘‘(1) STANDARDS.—The National Coordinator 

19 shall— 

20 ‘‘(A) review and determine whether to en21 dorse each standard, implementation specifica22 tion, and certification criterion for the elec23 tronic exchange and use of health information 

24 that is recommended by the HIT Standards 


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1 Committee under section 3003 for purposes of 

2 adoption under section 3004; 

3 ‘‘(B) make such determinations under sub4 paragraph (A), and report to the Secretary 

5 such determinations, not later than 45 days 

6 after the date the recommendation is received 

7 by the Coordinator; 

8 ‘‘(C) review Federal health information 

9 technology investments to ensure that Federal 

10 health information technology programs are 

11 meeting the objectives of the strategic plan pub12 lished under paragraph (3); and 

13 ‘‘(D) provide comments and advice regard14 ing specific Federal health information tech15 nology programs, at the request of the Office of 

16 Management and Budget. 

17 ‘‘(2) HIT POLICY COORDINATION.— 

18 ‘‘(A) IN GENERAL.—The National Coordi19 nator shall coordinate health information tech20 nology policy and programs of the Department 

21 with those of other relevant executive branch 

22 agencies with a goal of avoiding duplication of 

23 efforts and of helping to ensure that each agen24 cy undertakes health information technology ac25 tivities primarily within the areas of its greatest 


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1 expertise and technical capability and in a man2 ner towards a coordinated national goal. 

3 ‘‘(B) HIT POLICY AND STANDARDS COM4 MITTEES.—The National Coordinator shall be a 

5 leading member in the establishment and oper6 ations of the HIT Policy Committee and the 

7 HIT Standards Committee and shall serve as a 

8 liaison among those two Committees and the 

9 Federal Government. 

10 ‘‘(3) STRATEGIC PLAN.— 

11 ‘‘(A) IN GENERAL.—The National Coordi12 nator shall, in consultation with other appro13 priate Federal agencies (including the National 

14 Institute of Standards and Technology), update 

15 the Federal Health IT Strategic Plan (devel16 oped as of June 3, 2008) to include specific ob17 jectives, milestones, and metrics with respect to 

18 the following: 

19 ‘‘(i) The electronic exchange and use 

20 of health information and the enterprise 

21 integration of such information. 

22 ‘‘(ii) The utilization of an electronic 

23 health record for each person in the United 

24 States by 2014. 


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1 ‘‘(iii) The incorporation of privacy and 

2 security protections for the electronic ex3 change of an individual’s individually iden4 tifiable health information. 

5 ‘‘(iv) Ensuring security methods to 

6 ensure appropriate authorization and elec7 tronic authentication of health information 

8 and specifying technologies or methodolo9 gies for rendering health information unus10 able, unreadable, or indecipherable. 

11 ‘‘(v) Specifying a framework for co12 ordination and flow of recommendations 

13 and policies under this subtitle among the 

14 Secretary, the National Coordinator, the 

15 HIT Policy Committee, the HIT Standards 

16 Committee, and other health information 

17 exchanges and other relevant entities. 

18 ‘‘(vi) Methods to foster the public un19 derstanding of health information tech20 nology. 

21 ‘‘(vii) Strategies to enhance the use of 

22 health information technology in improving 

23 the quality of health care, reducing medical 

24 errors, reducing health disparities, improv25 ing public health, increasing prevention 


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1 and coordination with community re2 sources, and improving the continuity of 

3 care among health care settings. 

4 ‘‘(viii) Specific plans for ensuring that 

5 populations with unique needs, such as 

6 children, are appropriately addressed in 

7 the technology design, as appropriate, 

8 which may include technology that 

9 automates enrollment and retention for eli10 gible individuals. 

11 ‘‘(B) COLLABORATION.—The strategic 

12 plan shall be updated through collaboration of 

13 public and private entities. 

14 ‘‘(C) MEASURABLE OUTCOME GOALS.— 

15 The strategic plan update shall include measur16 able outcome goals. 

17 ‘‘(D) PUBLICATION.—The National Coor18 dinator shall republish the strategic plan, in19 cluding all updates. 

20 ‘‘(4) WEBSITE.—The National Coordinator 

21 shall maintain and frequently update an Internet 

22 website on which there is posted information on the 

23 work, schedules, reports, recommendations, and 

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1 motion of a nationwide health information tech2 nology infrastructure. 

3 ‘‘(5) HARMONIZATION.—The Secretary may 

4 recognize an entity or entities for the purpose of 

5 harmonizing or updating standards and implementa6 tion specifications in order to achieve uniform and 

7 consistent implementation of the standards and im8 plementation specifications. 

9 ‘‘(6) CERTIFICATION.— 

10 ‘‘(A) IN GENERAL.—The National Coordi11 nator, in consultation with the Director of the 

12 National Institute of Standards and Tech13 nology, shall recognize a program or programs 

14 for the voluntary certification of health infor15 mation technology as being in compliance with 

16 applicable certification criteria adopted under 

17 this subtitle. Such program shall include, as ap18 propriate, testing of the technology in accord19 ance with section 14201(b) of the Health Infor20 mation Technology for Economic and Clinical 

21 Health Act. 

22 ‘‘(B) CERTIFICATION CRITERIA DE23 SCRIBED.—In this title, the term ‘certification 

24 criteria’ means, with respect to standards and 

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1 mation technology, criteria to establish that the 

2 technology meets such standards and implemen3 tation specifications. 

4 ‘‘(6) REPORTS AND PUBLICATIONS.— 

5 ‘‘(A) REPORT ON ADDITIONAL FUNDING

6 OR AUTHORITY NEEDED.—Not later than 12 

7 months after the date of the enactment of this 

8 title, the National Coordinator shall submit to 

9 the appropriate committees of jurisdiction of 

10 the House of Representatives and the Senate a 

11 report on any additional funding or authority 

12 the Coordinator or the HIT Policy Committee 

13 or HIT Standards Committee requires to evalu14 ate and develop standards, implementation 

15 specifications, and certification criteria, or to 

16 achieve full participation of stakeholders in the 

17 adoption of a nationwide health information 

18 technology infrastructure that allows for the 

19 electronic use and exchange of health informa20 tion. 

21 ‘‘(B) IMPLEMENTATION REPORT.—The 

22 National Coordinator shall prepare a report 

23 that identifies lessons learned from major pub24 lic and private health care systems in their im25 plementation of health information technology, 


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1 including information on whether the tech2 nologies and practices developed by such sys3 tems may be applicable to and usable in whole 

4 or in part by other health care providers. 

5 ‘‘(C) ASSESSMENT OF IMPACT OF HIT ON

6 COMMUNITIES WITH HEALTH DISPARITIES AND

7 UNINSURED, UNDERINSURED, AND MEDICALLY

8 UNDERSERVED AREAS.—The National Coordi9 nator shall assess and publish the impact of 

10 health information technology in communities 

11 with health disparities and in areas with a high 

12 proportion of individuals who are uninsured, 

13 underinsured, and medically underserved indi14 viduals (including urban and rural areas) and 

15 identify practices to increase the adoption of 

16 such technology by health care providers in 

17 such communities, and the use of health infor18 mation technology to reduce and better manage 

19 chronic diseases. 

20 ‘‘(D) EVALUATION OF BENEFITS AND

21 COSTS OF THE ELECTRONIC USE AND EX22 CHANGE OF HEALTH INFORMATION.—The Na23 tional Coordinator shall evaluate and publish 

24 evidence on the benefits and costs of the elec25 tronic use and exchange of health information 


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1 and assess to whom these benefits and costs ac2 crue. 

3 (E) RESOURCE REQUIREMENTS.—The Na4 tional Coordinator shall estimate and publish 

5 resources required annually to reach the goal of 

6 utilization of an electronic health record for 

7 each person in the United States by 2014, in8 cluding— 

9 (i) the required level of Federal fund10 ing; 

11 (ii) expectations for regional, State, 

12 and private investment; 

13 (iii) the expected contributions by vol14 unteers to activities for the utilization of 

15 such records; and 

16 (iv) the resources needed to establish 

17 or expand education programs in medical 

18 and health informatics and health informa19 tion management to train health care and 

20 information technology students and pro21 vide a health information technology work22 force sufficient to ensure the rapid and ef23 fective deployment and utilization of health 

24 information technologies. 


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1 ‘‘(7) ASSISTANCE.—The National Coordinator 

2 may provide financial assistance to consumer advo3 cacy groups and not-for-profit entities that work in 

4 the public interest for purposes of defraying the cost 

5 to such groups and entities to participate under, 

6 whether in whole or in part, the National Tech7 nology Transfer Act of 1995 (15 U.S.C. 272 note). 

8 ‘‘(8) GOVERNANCE FOR NATIONWIDE HEALTH

9 INFORMATION NETWORK.—The National Coordi10 nator shall establish a governance mechanism for the 

11 nationwide health information network. 

12 ‘‘(d) DETAIL OF FEDERAL EMPLOYEES.— 

13 ‘‘(1) IN GENERAL.—Upon the request of the 

14 National Coordinator, the head of any Federal agen15 cy is authorized to detail, with or without reimburse16 ment from the Office, any of the personnel of such 

17 agency to the Office to assist it in carrying out its 

18 duties under this section. 

19 ‘‘(2) EFFECT OF DETAIL.—Any detail of per20 sonnel under paragraph (1) shall— 

21 ‘‘(A) not interrupt or otherwise affect the 

22 civil service status or privileges of the Federal 

23 employee; and 


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1 ‘‘(B) be in addition to any other staff of 

2 the Department employed by the National Co3 ordinator. 

4 ‘‘(3) ACCEPTANCE OF DETAILEES.—Notwith5 standing any other provision of law, the Office may 

6 accept detailed personnel from other Federal agen7 cies without regard to whether the agency described 

8 under paragraph (1) is reimbursed. 

9 ‘‘(e) CHIEF PRIVACY OFFICER OF THE OFFICE OF

10 THE NATIONAL COORDINATOR.—Not later than 12 

11 months after the date of the enactment of this title, the 

12 Secretary shall appoint a Chief Privacy Officer of the Of13 fice of the National Coordinator, whose duty it shall be 

14 to advise the National Coordinator on privacy, security, 

15 and data stewardship of electronic health information and 

16 to coordinate with other Federal agencies (and similar pri17 vacy officers in such agencies), with State and regional 

18 efforts, and with foreign countries with regard to the pri19 vacy, security, and data stewardship of electronic individ20 ually identifiable health information. 

21 ‘‘SEC. 3002. HIT POLICY COMMITTEE. 

22 ‘‘(a) ESTABLISHMENT.—There is established a HIT 

23 Policy Committee to make policy recommendations to the 

24 National Coordinator relating to the implementation of a 

25 nationwide health information technology infrastructure, 


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1 including implementation of the strategic plan described 

2 in section 3001(c)(3). 

3 ‘‘(b) DUTIES.— 

4 ‘‘(1) RECOMMENDATIONS ON HEALTH INFOR5 MATION TECHNOLOGY INFRASTRUCTURE.—The HIT 

6 Policy Committee shall recommend a policy frame7 work for the development and adoption of a nation8 wide health information technology infrastructure 

9 that permits the electronic exchange and use of 

10 health information as is consistent with the strategic 

11 plan under section 3001(c)(3) and that includes the 

12 recommendations under paragraph (2). The Com13 mittee shall update such recommendations and make 

14 new recommendations as appropriate. 

15 ‘‘(2) SPECIFIC AREAS OF STANDARD DEVELOP16 MENT.— 

17 ‘‘(A) IN GENERAL.—The HIT Policy Com18 mittee shall recommend the areas in which 

19 standards, implementation specifications, and 

20 certification criteria are needed for the elec21 tronic exchange and use of health information 

22 for purposes of adoption under section 3004 

23 and shall recommend an order of priority for 

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1 tification criteria among the areas so rec2 ommended. Such standards and implementation 

3 specifications shall include named standards, 

4 architectures, and software schemes for the au5 thentication and security of individually identifi6 able health information and other information 

7 as needed to ensure the reproducible develop8 ment of common solutions across disparate en9 tities. 

10 ‘‘(B) AREAS REQUIRED FOR CONSIDER11 ATION.—For purposes of subparagraph (A), the 

12 HIT Policy Committee shall make recommenda13 tions for at least the following areas: 

14 ‘‘(i) Technologies that protect the pri15 vacy of health information and promote se16 curity in a qualified electronic health 

17 record, including for the segmentation and 

18 protection from disclosure of specific and 

19 sensitive individually identifiable health in20 formation with the goal of minimizing the 

21 reluctance of patients to seek care (or dis22 close information about a condition) be23 cause of privacy concerns, in accordance 

24 with applicable law, and for the use and 


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1 disclosure of limited data sets of such in2 formation. 

3 ‘‘(ii) A nationwide health information 

4 technology infrastructure that allows for 

5 the electronic use and accurate exchange of 

6 health information. 

7 ‘‘(iii) The utilization of a certified 

8 electronic health record for each person in 

9 the United States by 2014. 

10 ‘‘(iv) Technologies that as a part of a 

11 qualified electronic health record allow for 

12 an accounting of disclosures made by a 

13 covered entity (as defined for purposes of 

14 regulations promulgated under section 

15 264(c) of the Health Insurance Portability 

16 and Accountability Act of 1996) for pur17 poses of treatment, payment, and health 

18 care operations (as such terms are defined 

19 for purposes of such regulations). 

20 ‘‘(v) The use of certified electronic 

21 health records to improve the quality of 

22 health care, such as by promoting the co23 ordination of health care and improving 

24 continuity of health care among health 

25 care providers, by reducing medical errors, 


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1 by improving population health, reducing 

2 chronic disease, and by advancing research 

3 and education. 

4 ‘‘(vi) The use of electronic systems to 

5 ensure the comprehensive collection of pa6 tient demographic data, including, at a 

7 minimum, race, ethnicity, primary lan8 guage, and gender information. 

9 ‘‘(vii) Technologies and design fea10 tures that address the needs of children 

11 and other vulnerable populations. 

12 ‘‘(C) OTHER AREAS FOR CONSIDER13 ATION.—In making recommendations under 

14 subparagraph (A), the HIT Policy Committee 

15 may consider the following additional areas: 

16 ‘‘(i) The appropriate uses of a nation17 wide health information infrastructure, in18 cluding for purposes of— 

19 ‘‘(I) the collection of quality data 

20 and public reporting; 

21 ‘‘(II) biosurveillance and public 

22 health; 

23 ‘‘(III) medical and clinical re24 search; and 

25 ‘‘(IV) drug safety. 


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1 ‘‘(ii) Self-service technologies that fa2 cilitate the use and exchange of patient in3 formation and reduce wait times. 

4 ‘‘(iii) Telemedicine technologies, in 

5 order to reduce travel requirements for pa6 tients in remote areas. 

7 ‘‘(iv) Technologies that facilitate home 

8 health care and the monitoring of patients 

9 recuperating at home. 

10 ‘‘(v) Technologies that help reduce 

11 medical errors. 

12 ‘‘(vi) Technologies that facilitate the 

13 continuity of care among health settings. 

14 ‘‘(vii) Technologies that meet the 

15 needs of diverse populations. 

16 ‘‘(viii) Methods to facilitate secure ac17 cess by an individual to such individual’s 

18 protected health information. 

19 ‘‘(ix) Methods, guidelines, and safe20 guards to facilitate secure access to patient 

21 information by a family member, caregiver, 

22 or guardian acting on behalf of a patient 

23 due to age-related and other disability, 

24 cognitive impairment, or dementia that 

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1 tient’s individually identifiable health infor2 mation. 

3 ‘‘(x) Any other technology that the 

4 HIT Policy Committee finds to be among 

5 the technologies with the greatest potential 

6 to improve the quality and efficiency of 

7 health care. 

8 ‘‘(3) FORUM.—The HIT Policy Committee shall 

9 serve as a forum for broad stakeholder input with 

10 specific expertise in policies relating to the matters 

11 described in paragraphs (1) and (2). 

12 ‘‘(4) CONSISTENCY WITH EVALUATION CON13 DUCTED UNDER MIPPA.— 

14 ‘‘(A) REQUIREMENT FOR CONSISTENCY.— 

15 The HIT Policy Committee shall ensure that 

16 recommendations made under paragraph 

17 (2)(B)(vi) are consistent with the evaluation 

18 conducted under section 1809(a) of the Social 

19 Security Act. 

20 ‘‘(B) SCOPE.—Nothing in subparagraph 

21 (A) shall be construed to limit the recommenda22 tions under paragraph (2)(B)(vi) to the ele23 ments described in section 1809(a)(3) of the 

24 Social Security Act. 


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1 ‘‘(C) TIMING.—The requirement under 

2 subparagraph (A) shall be applicable to the ex3 tent that evaluations have been conducted 

4 under section 1809(a) of the Social Security 

5 Act, regardless of whether the report described 

6 in subsection (b) of such section has been sub7 mitted. 

8 ‘‘(c) MEMBERSHIP AND OPERATIONS.— 

9 ‘‘(1) IN GENERAL.—The National Coordinator 

10 shall provide leadership in the establishment and op11 erations of the HIT Policy Committee. 

12 ‘‘(2) MEMBERSHIP.—The HIT Policy Com13 mittee shall be composed of members to be ap14 pointed as follows: 

15 ‘‘(A) One member shall be appointed by 

16 the Secretary. 

17 ‘‘(B) One member shall be appointed by 

18 the Secretary of Veterans Affairs who shall rep19 resent the Department of Veterans Affairs. 

20 ‘‘(C) One member shall be appointed by 

21 the Secretary of Defense who shall represent 

22 the Department of Defense. 

23 ‘‘(D) One member shall be appointed by 

24 the Majority Leader of the Senate. 


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1 ‘‘(E) One member shall be appointed by 

2 the Minority Leader of the Senate. 

3 ‘‘(F) One member shall be appointed by 

4 the Speaker of the House of Representatives. 

5 ‘‘(G) One member shall be appointed by 

6 the Minority Leader of the House of Represent7 atives. 

8 ‘‘(H) Eleven members shall be appointed 

9 by the Comptroller General of the United 

10 States, of whom— 

11 ‘‘(i) three members shall represent pa12 tients or consumers; 

13 ‘‘(ii) one member shall represent 

14 health care providers; 

15 ‘‘(iii) one member shall be from a 

16 labor organization representing health care 

17 workers; 

18 ‘‘(iv) one member shall have expertise 

19 in privacy and security; 

20 ‘‘(v) one member shall have expertise 

21 in improving the health of vulnerable popu22 lations; 

23 ‘‘(vi) one member shall represent 

24 health plans or other third party payers; 


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1 ‘‘(vii) one member shall represent in2 formation technology vendors; 

3 ‘‘(viii) one member shall represent 

4 purchasers or employers; and 

5 ‘‘(ix) one member shall have expertise 

6 in health care quality measurement and re7 porting. 

8 ‘‘(3) CHAIRPERSON AND VICE CHAIRPERSON.— 

9 The HIT Policy Committee shall designate one 

10 member to serve as the chairperson and one member 

11 to serve as the vice chairperson of the Policy Com12 mittee. 

13 ‘‘(4) NATIONAL COORDINATOR.—The National 

14 Coordinator shall serve as a member of the HIT 

15 Policy Committee and act as a liaison among the 

16 HIT Policy Committee, the HIT Standards Com17 mittee, and the Federal Government. 

18 ‘‘(5) PARTICIPATION.—The members of the 

19 HIT Policy Committee appointed under paragraph 

20 (2) shall represent a balance among various sectors 

21 of the health care system so that no single sector 

22 unduly influences the recommendations of the Policy 

23 Committee. 

24 ‘‘(6) TERMS.— 


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1 ‘‘(A) IN GENERAL.—The terms of the 

2 members of the HIT Policy Committee shall be 

3 for 3 years, except that the Comptroller General 

4 shall designate staggered terms for the mem5 bers first appointed. 

6 ‘‘(B) VACANCIES.—Any member appointed 

7 to fill a vacancy in the membership of the HIT 

8 Policy Committee that occurs prior to the expi9 ration of the term for which the member’s pred10 ecessor was appointed shall be appointed only 

11 for the remainder of that term. A member may 

12 serve after the expiration of that member’s 

13 term until a successor has been appointed. A 

14 vacancy in the HIT Policy Committee shall be 

15 filled in the manner in which the original ap16 pointment was made. 

17 ‘‘(7) OUTSIDE INVOLVEMENT.—The HIT Policy 

18 Committee shall ensure an adequate opportunity for 

19 the participation of outside advisors, including indi20 viduals with expertise in— 

21 ‘‘(A) health information privacy and secu22 rity; 

23 ‘‘(B) improving the health of vulnerable 

24 populations; 


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1 ‘‘(C) health care quality and patient safety, 

2 including individuals with expertise in the meas3 urement and use of health information tech4 nology to capture data to improve health care 

5 quality and patient safety; 

6 ‘‘(D) long-term care and aging services; 

7 ‘‘(E) medical and clinical research; and 

8 ‘‘(F) data exchange and developing health 

9 information technology standards and new 

10 health information technology. 

11 ‘‘(8) QUORUM.—Ten members of the HIT Pol12 icy Committee shall constitute a quorum for pur13 poses of voting, but a lesser number of members 

14 may meet and hold hearings. 

15 ‘‘(9) FAILURE OF INITIAL APPOINTMENT.—If, 

16 on the date that is 45 days after the date of enact17 ment of this title, an official authorized under para18 graph (2) to appoint one or more members of the 

19 HIT Policy Committee has not appointed the full 

20 number of members that such paragraph authorizes 

21 such official to appoint— 

22 ‘‘(A) the number of members that such of23 ficial is authorized to appoint shall be reduced 

24 to the number that such official has appointed 

25 as of that date; and 


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1 ‘‘(B) the number prescribed in paragraph 

2 (8) as the quorum shall be reduced to the 

3 smallest whole number that is greater than one4 half of the total number of members who have 

5 been appointed as of that date. 

6 ‘‘(10) CONSIDERATION.—The National Coordi7 nator shall ensure that the relevant recommenda8 tions and comments from the National Committee 

9 on Vital and Health Statistics are considered in the 

10 development of policies. 

11 ‘‘(d) APPLICATION OF FACA.—The Federal Advisory 

12 Committee Act (5 U.S.C. App.), other than section 14 of 

13 such Act, shall apply to the HIT Policy Committee. 

14 ‘‘(e) PUBLICATION.—The Secretary shall provide for 

15 publication in the Federal Register and the posting on the 

16 Internet website of the Office of the National Coordinator 

17 for Health Information Technology of all policy rec18 ommendations made by the HIT Policy Committee under 

19 this section. 

20 ‘‘SEC. 3003. HIT STANDARDS COMMITTEE. 

21 ‘‘(a) ESTABLISHMENT.—There is established a com22 mittee to be known as the HIT Standards Committee to 

23 recommend to the National Coordinator standards, imple24 mentation specifications, and certification criteria for the 

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1 poses of adoption under section 3004, consistent with the 

2 implementation of the strategic plan described in section 

3 3001(c)(3) and beginning with the areas listed in section 

4 3002(b)(2)(B) in accordance with policies developed by 

5 the HIT Policy Committee. 

6 ‘‘(b) DUTIES.— 

7 ‘‘(1) STANDARD DEVELOPMENT.— 

8 ‘‘(A) IN GENERAL.—The HIT Standards 

9 Committee shall recommend to the National 

10 Coordinator standards, implementation speci11 fications, and certification criteria described in 

12 subsection (a) that have been developed, har13 monized, or recognized by the HIT Standards 

14 Committee. The HIT Standards Committee 

15 shall update such recommendations and make 

16 new recommendations as appropriate, including 

17 in response to a notification sent under section 

18 3004(b)(2). Such recommendations shall be 

19 consistent with the latest recommendations 

20 made by the HIT Policy Committee. 

21 ‘‘(B) PILOT TESTING OF STANDARDS AND

22 IMPLEMENTATION SPECIFICATIONS.—In the de23 velopment, harmonization, or recognition of 

24 standards and implementation specifications, 

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1 priate, provide for the testing of such standards 

2 and specifications by the National Institute for 

3 Standards and Technology under section 14201 

4 of the Health Information Technology for Eco5 nomic and Clinical Health Act. 

6 ‘‘(C) CONSISTENCY.—The standards, im7 plementation specifications, and certification 

8 criteria recommended under this subsection 

9 shall be consistent with the standards for infor10 mation transactions and data elements adopted 

11 pursuant to section 1173 of the Social Security 

12 Act. 

13 ‘‘(2) FORUM.—The HIT Standards Committee 

14 shall serve as a forum for the participation of a 

15 broad range of stakeholders to provide input on the 

16 development, harmonization, and recognition of 

17 standards, implementation specifications, and certifi18 cation criteria necessary for the development and 

19 adoption of a nationwide health information tech20 nology infrastructure that allows for the electronic 

21 use and exchange of health information. 

22 ‘‘(3) SCHEDULE.—Not later than 90 days after 

23 the date of the enactment of this title, the HIT 

24 Standards Committee shall develop a schedule for 

25 the assessment of policy recommendations developed 


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1 by the HIT Policy Committee under section 3002. 

2 The HIT Standards Committee shall update such 

3 schedule annually. The Secretary shall publish such 

4 schedule in the Federal Register. 

5 ‘‘(4) PUBLIC INPUT.—The HIT Standards 

6 Committee shall conduct open public meetings and 

7 develop a process to allow for public comment on the 

8 schedule described in paragraph (3) and rec9 ommendations described in this subsection. Under 

10 such process comments shall be submitted in a time11 ly manner after the date of publication of a rec12 ommendation under this subsection. 

13 ‘‘(5) CONSIDERATION.—The National Coordi14 nator shall ensure that the relevant recommenda15 tions and comments from the National Committee 

16 on Vital and Health Statistics are considered in the 

17 development of standards. 

18 ‘‘(c) MEMBERSHIP AND OPERATIONS.— 

19 ‘‘(1) IN GENERAL.—The National Coordinator 

20 shall provide leadership in the establishment and op21 erations of the HIT Standards Committee. 

22 ‘‘(2) MEMBERSHIP.—The membership of the 

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1 ers, relevant Federal agencies, and individuals with 

2 technical expertise on health care quality, privacy 

3 and security, and on the electronic exchange and use 

4 of health information. 

5 ‘‘(3) BROAD PARTICIPATION.—There is broad 

6 participation in the HIT Standards Committee by a 

7 variety of public and private stakeholders, either 

8 through membership in the Committee or through 

9 another means. 

10 ‘‘(4) CHAIRPERSON; VICE CHAIRPERSON.—The 

11 HIT Standards Committee may designate one mem12 ber to serve as the chairperson and one member to 

13 serve as the vice chairperson. 

14 ‘‘(5) DEPARTMENT MEMBERSHIP.—The Sec15 retary shall be a member of the HIT Standards 

16 Committee. The National Coordinator shall act as a 

17 liaison among the HIT Standards Committee, the 

18 HIT Policy Committee, and the Federal Govern19 ment. 

20 ‘‘(6) BALANCE AMONG SECTORS.—In developing 

21 the procedures for conducting the activities of the 

22 HIT Standards Committee, the HIT Standards 

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1 gle sector unduly influences the actions of the HIT 

2 Standards Committee. 

3 ‘‘(7) ASSISTANCE.—For the purposes of car4 rying out this section, the Secretary may provide or 

5 ensure that financial assistance is provided by the 

6 HIT Standards Committee to defray in whole or in 

7 part any membership fees or dues charged by such 

8 Committee to those consumer advocacy groups and 

9 not for profit entities that work in the public inter10 est as a part of their mission. 

11 ‘‘(d) OPEN AND PUBLIC PROCESS.—In providing for 

12 the establishment of the HIT Standards Committee pur13 suant to subsection (a), the Secretary shall ensure the fol14 lowing: 

15 ‘‘(1) CONSENSUS APPROACH; OPEN PROCESS.— 

16 The HIT Standards Committee shall use a con17 sensus approach and a fair and open process to sup18 port the development, harmonization, and recogni19 tion of standards described in subsection (a)(1). 

20 ‘‘(2) PARTICIPATION OF OUTSIDE ADVISERS.— 

21 The HIT Standards Committee shall ensure an ade22 quate opportunity for the participation of outside 

23 advisors, including individuals with expertise in— 

24 ‘‘(A) health information privacy; 

25 ‘‘(B) health information security; 


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1 ‘‘(C) health care quality and patient safety, 

2 including individuals with expertise in utilizing 

3 health information technology to improve 

4 healthcare quality and patient safety; 

5 ‘‘(D) long-term care and aging services; 

6 and 

7 ‘‘(E) data exchange and developing health 

8 information technology standards and new 

9 health information technology. 

10 ‘‘(3) OPEN MEETINGS.—Plenary and other reg11 ularly scheduled formal meetings of the HIT Stand12 ards Committee (or established subgroups thereof) 

13 shall be open to the public. 

14 ‘‘(4) PUBLICATION OF MEETING NOTICES AND

15 MATERIALS PRIOR TO MEETINGS.—The HIT Stand16 ards Committee shall develop and maintain an Inter17 net website on which it publishes, prior to each 

18 meeting, a meeting notice, a meeting agenda, and 

19 meeting materials. 

20 ‘‘(5) OPPORTUNITY FOR PUBLIC COMMENT.— 

21 The HIT Standards Committee shall develop a proc22 ess that allows for public comment during the proc23 ess by which the Entity develops, harmonizes, or rec24 ognizes standards and implementation specifications. 


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1 ‘‘(e) VOLUNTARY CONSENSUS STANDARD BODY.— 

2 The provisions of section 12(d) of the National Technology 

3 Transfer and Advancement Act of 1995 (15 U.S.C. 272 

4 note) and the Office of Management and Budget circular 

5 119 shall apply to the HIT Standards Committee. 

6 ‘‘(f) PUBLICATION.—The Secretary shall provide for 

7 publication in the Federal Register and the posting on the 

8 Internet website of the Office of the National Coordinator 

9 for Health Information Technology of all recommenda10 tions made by the HIT Standards Committee under this 

11 section. 

12 ‘‘SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED REC13 OMMENDATIONS; ADOPTION OF INITIAL SET 

14 OF STANDARDS, IMPLEMENTATION SPECI15 FICATIONS, AND CERTIFICATION CRITERIA. 

16 ‘‘(a) PROCESS FOR ADOPTION OF ENDORSED REC17 OMMENDATIONS.— 

18 ‘‘(1) REVIEW OF ENDORSED STANDARDS, IM19 PLEMENTATION SPECIFICATIONS, AND CERTIFI20 CATION CRITERIA.—Not later than 90 days after the 

21 date of receipt of standards, implementation speci22 fications, or certification criteria endorsed under sec23 tion 3001(c), the Secretary, in consultation with rep24 resentatives of other relevant Federal agencies, shall 

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1 fications, or certification criteria and shall determine 

2 whether or not to propose adoption of such stand3 ards, implementation specifications, or certification 

4 criteria. 

5 ‘‘(2) DETERMINATION TO ADOPT STANDARDS, 

6 IMPLEMENTATION SPECIFICATIONS, AND CERTIFI7 CATION CRITERIA.—If the Secretary determines— 

8 ‘‘(A) to propose adoption of any grouping 

9 of such standards, implementation specifica10 tions, or certification criteria, the Secretary 

11 shall, by regulation, determine whether or not 

12 to adopt such grouping of standards, implemen13 tation specifications, or certification criteria; or 

14 ‘‘(B) not to propose adoption of any group15 ing of standards, implementation specifications, 

16 or certification criteria, the Secretary shall no17 tify the National Coordinator and the HIT 

18 Standards Committee in writing of such deter19 mination and the reasons for not proposing the 

20 adoption of such recommendation. 

21 ‘‘(3) PUBLICATION.—The Secretary shall pro22 vide for publication in the Federal Register of all de23 terminations made by the Secretary under para24 graph (1). 


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1 ‘‘(b) ADOPTION OF STANDARDS, IMPLEMENTATION

2 SPECIFICATIONS, AND CERTIFICATION CRITERIA.— 

3 ‘‘(1) IN GENERAL.—Not later than December 

4 31, 2009, the Secretary shall, through the rule5 making process described in section 3003, adopt an 

6 initial set of standards, implementation specifica7 tions, and certification criteria for the areas required 

8 for consideration under section 3002(b)(2)(B). 

9 ‘‘(2) APPLICATION OF CURRENT STANDARDS, 

10 IMPLEMENTATION SPECIFICATIONS, AND CERTIFI11 CATION CRITERIA.—The standards, implementation 

12 specifications, and certification criteria adopted be13 fore the date of the enactment of this title through 

14 the process existing through the Office of the Na15 tional Coordinator for Health Information Tech16 nology may be applied towards meeting the require17 ment of paragraph (1). 

18 ‘‘(3) SUBSEQUENT STANDARDS ACTIVITY.—The 

19 Secretary shall adopt additional standards, imple20 mentation specifications, and certification criteria as 

21 necessary and consistent with the schedule published 

22 under section 3003(b)(2). 


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1 ‘‘SEC. 3005. APPLICATION AND USE OF ADOPTED STAND2 ARDS AND IMPLEMENTATION SPECIFICA3 TIONS BY FEDERAL AGENCIES. 

4 ‘‘For requirements relating to the application and use 

5 by Federal agencies of the standards and implementation 

6 specifications adopted under section 3004, see section 

7 13111 of the Health Information Technology for Eco8 nomic and Clinical Health Act. 

9 ‘‘SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPT10 ED STANDARDS AND IMPLEMENTATION 

11 SPECIFICATIONS BY PRIVATE ENTITIES. 

12 ‘‘(a) IN GENERAL.—Except as provided under section 

13 13112 of the Health Information Technology for Eco14 nomic and Clinical Health Act, any standard or implemen15 tation specification adopted under section 3004 shall be 

16 voluntary with respect to private entities. 

17 ‘‘(b) RULE OF CONSTRUCTION.—Nothing in this sub18 title shall be construed to require that a private entity that 

19 enters into a contract with the Federal Government apply 

20 or use the standards and implementation specifications 

21 adopted under section 3004 with respect to activities not 

22 related to the contract. 

23 ‘‘SEC. 3007. FEDERAL HEALTH INFORMATION TECH24 NOLOGY. 

25 ‘‘(a) IN GENERAL.—The National Coordinator shall 

26 support the development and routine updating of qualified 


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1 electronic health record technology (as defined in section 

2 3000) consistent with subsections (b) and (c) and make 

3 available such qualified electronic health record technology 

4 unless the Secretary and the HIT Policy Committee deter5 mine through an assessment that the needs and demands 

6 of providers are being substantially and adequately met 

7 through the marketplace. 

8 ‘‘(b) CERTIFICATION.—In making such EHR tech9 nology publicly available, the National Coordinator shall 

10 ensure that the qualified EHR technology described in 

11 subsection (a) is certified under the program developed 

12 under section 3001(c)(3) to be in compliance with applica13 ble standards adopted under section 3003(a). 

14 ‘‘(c) AUTHORIZATION TO CHARGE A NOMINAL

15 FEE.—The National Coordinator may impose a nominal 

16 fee for the adoption by a health care provider of the health 

17 information technology system developed or approved 

18 under subsection (a) and (b). Such fee shall take into ac19 count the financial circumstances of smaller providers, low 

20 income providers, and providers located in rural or other 

21 medically underserved areas. 

22 ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec23 tion shall be construed to require that a private or govern24 ment entity adopt or use the technology provided under 

25 this section. 


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1 SEC. 3008. TRANSITIONS. 

2 ‘‘(a) ONCHIT.—Nothing in section 3001 shall be 

3 construed as requiring the creation of a new entity to the 

4 extent that the Office of the National Coordinator for 

5 Health Information Technology established pursuant to 

6 Executive Order 13335 is consistent with the provisions 

7 of section 3001. 

8 ‘‘(b) NATIONAL EHEALTH COLLABORATIVE.—Noth9 ing in sections 3002 or 3003 or this subsection shall be 

10 construed as prohibiting the National eHealth Collabo11 rative from modifying its charter, duties, membership, and 

12 any other structure or function required to be consistent 

13 with the requirements of a voluntary consensus standards 

14 body so as to allow the Secretary to recognize the National 

15 eHealth Collaborative as the HIT Standards Committee. 

16 ‘‘(c) CONSISTENCY OF RECOMMENDATIONS.—In car17 rying out section 3003(b)(1)(A), until recommendations 

18 are made by the HIT Policy Committee, recommendations 

19 of the HIT Standards Committee shall be consistent with 

20 the most recent recommendations made by such AHIC 

21 Successor, Inc. 

22 ‘‘SEC. 3009. RELATION TO HIPAA PRIVACY AND SECURITY 

23 LAW. 

24 ‘‘(a) IN GENERAL.—With respect to the relation of 

25 this title to HIPAA privacy and security law: 


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1 ‘‘(1) This title may not be construed as having 

2 any effect on the authorities of the Secretary under 

3 HIPAA privacy and security law. 

4 ‘‘(2) The purposes of this title include ensuring 

5 that the health information technology standards 

6 and implementation specifications adopted under 

7 section 3004 take into account the requirements of 

8 HIPAA privacy and security law. 

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

10 term ‘HIPAA privacy and security law’ means— 

11 ‘‘(1) the provisions of part C of title XI of the 

12 Social Security Act, section 264 of the Health Insur13 ance Portability and Accountability Act of 1996, and 

14 subtitle D of the Health Information Technology for 

15 Economic and Clinical Health Act; and 

16 ‘‘(2) regulations under such provisions.’’. 

17 SEC. 13102. TECHNICAL AMENDMENT. 

18 Section 1171(5) of the Social Security Act (42 U.S.C. 

19 1320d) is amended by striking ‘‘or C’’ and inserting ‘‘C, 

20 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 Ex9 ecutive 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, 

16 health information technology systems and products that 

17 meet standards and implementation specifications adopted 

18 under section 3004(b) of the Public Health Service Act, 

19 as added by section 13101. 

20 (b) FEDERAL INFORMATION COLLECTION ACTIVI21 TIES.—With respect to a standard or implementation 

22 specification adopted under section 3004(b) of the Public 

23 Health Service Act, as added by section 13101, the Presi24 dent shall take measures to ensure that Federal activities 

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1 tation specification, respectively, within three years after 

2 the date of such adoption. 

3 (c) APPLICATION OF DEFINITIONS.—The definitions 

4 contained in section 3000 of the Public Health Service 

5 Act, as added by section 13101, shall apply for purposes 

6 of this 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 

15 information technology systems, it shall utilize, where 

16 available, health information technology systems and prod17 ucts that meet standards and implementation specifica18 tions adopted under section 3004(b) of the Public Health 

19 Service Act, as added by section 13101. 

20 SEC. 13113. STUDY AND REPORTS. 

21 (a) REPORT ON ADOPTION OF NATIONWIDE SYS22 TEM.—Not later than 2 years after the date of the enact23 ment of this Act and annually thereafter, the Secretary 

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1 priate committees of jurisdiction of the House of Rep2 resentatives and the Senate a report that— 

3 (1) describes the specific actions that have been 

4 taken by the Federal Government and private enti5 ties to facilitate the adoption of a nationwide system 

6 for the electronic use and exchange of health infor7 mation; 

8 (2) describes barriers to the adoption of such a 

9 nationwide system; and 

10 (3) contains recommendations to achieve full 

11 implementation of such a nationwide system. 

12 (b) REIMBURSEMENT INCENTIVE STUDY AND RE13 PORT.— 

14 (1) STUDY.—The Secretary of Health and 

15 Human Services shall carry out, or contract with a 

16 private entity to carry out, a study that examines 

17 methods to create efficient reimbursement incentives 

18 for improving health care quality in Federally quali19 fied health centers, rural health clinics, and free 

20 clinics. 

21 (2) REPORT.—Not later than 2 years after the 

22 date of the enactment of this Act, the Secretary of 

23 Health and Human Services shall submit to the ap24 propriate committees of jurisdiction of the House of 


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1 Representatives and the Senate a report on the 

2 study carried out under paragraph (1). 

3 (c) AGING SERVICES TECHNOLOGY STUDY AND RE4 PORT.— 

5 (1) IN GENERAL.—The Secretary of Health and 

6 Human Services shall carry out, or contract with a 

7 private entity to carry out, a study of matters relat8 ing to the potential use of new aging services tech9 nology to assist seniors, individuals with disabilities, 

10 and their caregivers throughout the aging process. 

11 (2) MATTERS TO BE STUDIED.—The study 

12 under paragraph (1) shall include— 

13 (A) an evaluation of— 

14 (i) methods for identifying current, 

15 emerging, and future health technology 

16 that can be used to meet the needs of sen17 iors and individuals with disabilities and 

18 their caregivers across all aging services 

19 settings, as specified by the Secretary; 

20 (ii) methods for fostering scientific in21 novation with respect to aging services 

22 technology within the business and aca23 demic communities; and 


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1 (iii) developments in aging services 

2 technology in other countries that may be 

3 applied in the United States; and 

4 (B) identification of— 

5 (i) barriers to innovation in aging 

6 services technology and devising strategies 

7 for removing such barriers; and 

8 (ii) barriers to the adoption of aging 

9 services technology by health care pro10 viders and consumers and devising strate11 gies to removing such barriers. 

12 (3) REPORT.—Not later than 24 months after 

13 the date of the enactment of this Act, the Secretary 

14 shall submit to the appropriate committees of juris15 diction of the House of Representatives and of the 

16 Senate a report on the study carried out under para17 graph (1). 

18 (4) DEFINITIONS.—For purposes of this sub19 section: 

20 (A) AGING SERVICES TECHNOLOGY.—The 

21 term ‘‘aging services technology’’ means health 

22 technology that meets the health care needs of 

23 seniors, individuals with disabilities, and the 

24 caregivers of such seniors and individuals. 


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AMDT. NO. 570 

1 (B) SENIOR.—The term ‘‘senior’’ has such 

2 meaning as specified by the Secretary. 

3 GENERAL PROVISIONS—HOPE FOR HOMEOWNERS

4 AMENDMENTS

5 SEC. 1211. Section 257 of the National Housing Act 

6 (12 U.S.C. 1715z–23), as amended by the Emergency 

7 Economic Stabilization Act of 2008 (Public Law 110– 

8 343), is amended— 

9 (1) in subsection (e)(1)(B), by inserting after 

10 ‘‘being reset,’’ the following: ‘‘or has, due to a de11 crease in income,’’; 

12 (2) in subsection (k)(2), by striking ‘‘and the 

13 mortgagor’’ and all that follows through the end and 

14 inserting ‘‘shall, upon any sale or disposition of the 

15 property to which the mortgage relates, be entitled 

16 to 25 percent of appreciation, up to the appraised 

17 value of the home at the time when the mortgage 

18 being refinanced under this section was originally 

19 made. The Secretary may share any amounts re20 ceived under this paragraph with the holder of the 

21 eligible mortgage refinanced under this section.’’; 

22 (3) in subsection (i)— 

23 (A) by inserting ‘‘, after weighing maxi24 mization of participation with consideration for 

25 the solvency of the program,’’ after ‘‘Secretary 

26 shall’’; 


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1 (B) in paragraph (1), by striking ‘‘equal to 

2 3 percent’’ and inserting ‘‘not more than 2 per3 cent’’; and 

4 (C) in paragraph (2), by striking ‘‘equal to 

5 1.5 percent’’ and inserting ‘‘not more than 1 

6 percent’’; and 

7 (4) by adding at the end the following: 

8 ‘‘(x) AUCTIONS.—The Board shall, if feasible, estab9 lish a structure and organize procedures for an auction 

10 to refinance eligible mortgages on a wholesale or bulk 

11 basis. 

12 ‘‘(y) COMPENSATION OF SERVICERS.—To provide in13 centive for participation in the program under this section, 

14 each servicer of an eligible mortgage insured under this 

15 section shall be paid $1,000 for performing services associ16 ated with refinancing such mortgage, or such other 

17 amount as the Board determines is warranted. Funding 

18 for such compensation shall be provided by funds realized 

19 through the HOPE bond under subsection (w).’’. 

20 Subtitle B—Testing of Health 

21 Information Technology 

22 SEC. 13201. NATIONAL INSTITUTE FOR STANDARDS AND 

23 TECHNOLOGY TESTING. 

24 (a) PILOT TESTING OF STANDARDS AND IMPLEMEN25 TATION SPECIFICATIONS.—In coordination with the HIT 


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1 Standards Committee established under section 3003 of 

2 the Public Health Service Act, as added by section 13101, 

3 with respect to the development of standards and imple4 mentation specifications under such section, the Director 

5 of the National Institute for Standards and Technology 

6 shall test such standards and implementation specifica7 tions, as appropriate, in order to assure the efficient im8 plementation and use of such standards and implementa9 tion specifications. 

10 (b) VOLUNTARY TESTING PROGRAM.—In coordina11 tion with the HIT Standards Committee established under 

12 section 3003 of the Public Health Service Act, as added 

13 by section 13101, with respect to the development of 

14 standards and implementation specifications under such 

15 section, the Director of the National Institute of Stand16 ards and Technology shall support the establishment of 

17 a conformance testing infrastructure, including the devel18 opment of technical test beds. The development of this 

19 conformance testing infrastructure may include a program 

20 to accredit independent, non-Federal laboratories to per21 form testing. 

22 SEC. 13202. RESEARCH AND DEVELOPMENT PROGRAMS. 

23 (a) HEALTH CARE INFORMATION ENTERPRISE INTE24 GRATION RESEARCH CENTERS.— 


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1 (1) IN GENERAL.—The Director of the National 

2 Institute of Standards and Technology, in consulta3 tion with the Director of the National Science Foun4 dation and other appropriate Federal agencies, shall 

5 establish a program of assistance to institutions of 

6 higher education (or consortia thereof which may in7 clude nonprofit entities and Federal Government 

8 laboratories) to establish multidisciplinary Centers 

9 for Health Care Information Enterprise Integration. 

10 (2) REVIEW; COMPETITION.—Grants shall be 

11 awarded under this subsection on a merit-reviewed, 

12 competitive basis. 

13 (3) PURPOSE.—The purposes of the Centers de14 scribed in paragraph (1) shall be— 

15 (A) to generate innovative approaches to 

16 health care information enterprise integration 

17 by conducting cutting-edge, multidisciplinary 

18 research on the systems challenges to health 

19 care delivery; and 

20 (B) the development and use of health in21 formation technologies and other complemen22 tary fields. 

23 (4) RESEARCH AREAS.—Research areas may in24 clude— 


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1 (A) interfaces between human information 

2 and communications technology systems; 

3 (B) voice-recognition systems; 

4 (C) software that improves interoperability 

5 and connectivity among health information sys6 tems; 

7 (D) software dependability in systems crit8 ical to health care delivery; 

9 (E) measurement of the impact of informa10 tion technologies on the quality and productivity 

11 of health care; 

12 (F) health information enterprise manage13 ment; 

14 (G) health information technology security 

15 and integrity; and 

16 (H) relevant health information technology 

17 to reduce medical errors. 

18 (5) APPLICATIONS.—An institution of higher 

19 education (or a consortium thereof) seeking funding 

20 under this subsection shall submit an application to 

21 the Director of the National Institute of Standards 

22 and Technology at such time, in such manner, and 

23 containing such information as the Director may re24 quire. The application shall include, at a minimum, 

25 a description of— 


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1 (A) the research projects that will be un2 dertaken by the Center established pursuant to 

3 assistance under paragraph (1) and the respec4 tive contributions of the participating entities; 

5 (B) how the Center will promote active col6 laboration among scientists and engineers from 

7 different disciplines, such as information tech8 nology, biologic sciences, management, social 

9 sciences, and other appropriate disciplines; 

10 (C) technology transfer activities to dem11 onstrate and diffuse the research results, tech12 nologies, and knowledge; and 

13 (D) how the Center will contribute to the 

14 education and training of researchers and other 

15 professionals in fields relevant to health infor16 mation enterprise integration. 

17 (b) NATIONAL INFORMATION TECHNOLOGY RE18 SEARCH AND DEVELOPMENT PROGRAM.—The National 

19 High-Performance Computing Program established by 

20 section 101 of the High-Performance Computing Act of 

21 1991 (15 U.S.C. 5511) may review Federal research and 

22 development programs related to the development and de23 ployment of health information technology, including ac24 tivities related to— 

25 (1) computer infrastructure; 


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1 (2) data security; 

2 (3) development of large-scale, distributed, reli3 able computing systems; 

4 (4) wired, wireless, and hybrid high-speed net5 working; 

6 (5) development of software and software-inten7 sive systems; 

8 (6) human-computer interaction and informa9 tion management technologies; and 

10 (7) the social and economic implications of in11 formation technology. 

12 Subtitle C—Incentives for the Use 

13 of Health Information Technology 

14 PART I—GRANTS AND LOANS FUNDING 

15 SEC. 13301. GRANT, LOAN, AND DEMONSTRATION PRO16 GRAMS. 

17 Title XXX of the Public Health Service Act, as added 

18 by section 13101, is amended by adding at the end the 

19 following new subtitle: 


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1 ‘‘Subtitle B—Incentives for the Use 

2 of Health Information Technology 

3 ‘‘SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE 

4 HEALTH INFORMATION TECHNOLOGY INFRA5 STRUCTURE. 

6 ‘‘(a) IN GENERAL.—The Secretary of Health and 

7 Human Services shall, using amounts appropriated under 

8 section 3018, invest in the infrastructure necessary to 

9 allow for and promote the electronic exchange and use of 

10 health information for each individual in the United States 

11 consistent with the goals outlined in the strategic plan de12 veloped by the National Coordinator (and, as available) 

13 under section 3001. To the greatest extent practicable, the 

14 Secretary shall ensure that any funds so appropriated 

15 shall be used for the acquisition of health information 

16 technology that meets standards and certification criteria 

17 adopted before the date of the enactment of this title until 

18 such date as the standards are adopted under section 

19 3004. The Secretary shall invest funds through the dif20 ferent agencies with expertise in such goals, such as the 

21 Office of the National Coordinator for Health Information 

22 Technology, the Health Resources and Services Adminis23 tration, the Agency for Healthcare Research and Quality, 

24 the Centers of Medicare & Medicaid Services, the Centers 


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1 for Disease Control and Prevention, and the Indian 

2 Health Service to support the following: 

3 ‘‘(1) Health information technology architecture 

4 that will support the nationwide electronic exchange 

5 and use of health information in a secure, private, 

6 and accurate manner, including connecting health 

7 information exchanges, and which may include up8 dating and implementing the infrastructure nec9 essary within different agencies of the Department 

10 of Health and Human Services to support the elec11 tronic use and exchange of health information. 

12 ‘‘(2) Development and adoption of appropriate 

13 certified electronic health records for categories of 

14 providers not eligible for support under title XVIII 

15 or XIX of the Social Security Act for the adoption 

16 of such records. 

17 ‘‘(3) Training on and dissemination of informa18 tion on best practices to integrate health information 

19 technology, including electronic health records, into 

20 a provider’s delivery of care, consistent with best 

21 practices learned from the Health Information Tech22 nology Research Center developed under section 

23 3012, including community health centers receiving 

24 assistance under section 330 of the Public Health 

25 Service Act, covered entities under section 340B of 


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1 such Act, and providers participating in one or more 

2 of the programs under titles XVIII, XIX, and XXI 

3 of the Social Security Act (relating to Medicare, 

4 Medicaid, and the State Children’s Health Insurance 

5 Program). 

6 ‘‘(4) Infrastructure and tools for the promotion 

7 of telemedicine, including coordination among Fed8 eral agencies in the promotion of telemedicine. 

9 ‘‘(5) Promotion of the interoperability of clinical 

10 data repositories or registries. 

11 ‘‘(6) Promotion of technologies and best prac12 tices that enhance the protection of health informa13 tion by all holders of individually identifiable health 

14 information. 

15 ‘‘(7) Improve and expand the use of health in16 formation technology by public health departments. 

17 ‘‘(8) Provide $300,000,000 to support regional 

18 or sub-national efforts towards health information 

19 exchange. 

20 ‘‘(b) COORDINATION.—The Secretary shall ensure 

21 funds under this section are used in a coordinated manner 

22 with other health information promotion activities. 

23 ‘‘(c) ADDITIONAL USE OF FUNDS.—In addition to 

24 using funds as provided in subsection (a), the Secretary 

25 may use amounts appropriated under section 3018 to 


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1 carry out activities that are provided for under laws in 

2 effect on the date of enactment of this title. 

3 ‘‘SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLE4 MENTATION ASSISTANCE. 

5 ‘‘(a) HEALTH INFORMATION TECHNOLOGY EXTEN6 SION PROGRAM.—To assist health care providers to adopt, 

7 implement, and effectively use certified EHR technology 

8 that allows for the electronic exchange and use of health 

9 information, the Secretary, acting through the Office of 

10 the National Coordinator, shall establish a health informa11 tion technology extension program to provide health infor12 mation technology assistance services to be carried out 

13 through the Department of Health and Human Services. 

14 The National Coordinator shall consult with other Federal 

15 agencies with demonstrated experience and expertise in in16 formation technology services, such as the National Insti17 tute of Standards and Technology, in developing and im18 plementing this program. 

19 ‘‘(b) HEALTH INFORMATION TECHNOLOGY RE20 SEARCH CENTER.— 

21 ‘‘(1) IN GENERAL.—The Secretary shall create 

22 a Health Information Technology Research Center 

23 (in this section referred to as the ‘Center’) to pro24 vide technical assistance and develop or recognize 

25 best practices to support and accelerate efforts to 


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1 adopt, implement, and effectively utilize health infor2 mation technology that allows for the electronic ex3 change and use of information in compliance with 

4 standards, implementation specifications, and certifi5 cation criteria adopted under section 3004(b). 

6 ‘‘(2) INPUT.—The Center shall incorporate 

7 input from— 

8 ‘‘(A) other Federal agencies with dem9 onstrated experience and expertise in informa10 tion technology services such as the National 

11 Institute of Standards and Technology; 

12 ‘‘(B) users of health information tech13 nology, such as providers and their support and 

14 clerical staff and others involved in the care and 

15 care coordination of patients, from the health 

16 care and health information technology indus17 try; and 

18 ‘‘(C) others as appropriate. 

19 ‘‘(3) PURPOSES.—The purposes of the Center 

20 are to— 

21 ‘‘(A) provide a forum for the exchange of 

22 knowledge and experience; 

23 ‘‘(B) accelerate the transfer of lessons 

24 learned from existing public and private sector 


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1 initiatives, including those currently receiving 

2 Federal financial support; 

3 ‘‘(C) assemble, analyze, and widely dis4 seminate evidence and experience related to the 

5 adoption, implementation, and effective use of 

6 health information technology that allows for 

7 the electronic exchange and use of information 

8 including through the regional centers described 

9 in subsection (c); 

10 ‘‘(D) provide technical assistance for the 

11 establishment and evaluation of regional and 

12 local health information networks to facilitate 

13 the electronic exchange of information across 

14 health care settings and improve the quality of 

15 health care; 

16 ‘‘(E) provide technical assistance for the 

17 development and dissemination of solutions to 

18 barriers to the exchange of electronic health in19 formation; and 

20 ‘‘(F) learn about effective strategies to 

21 adopt and utilize health information technology 

22 in medically underserved communities. 

23 ‘‘(c) HEALTH INFORMATION TECHNOLOGY RE24 GIONAL EXTENSION CENTERS.— 


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1 ‘‘(1) IN GENERAL.—The Secretary shall provide 

2 assistance for the creation and support of regional 

3 centers (in this subsection referred to as ‘regional 

4 centers’) to provide technical assistance and dissemi5 nate best practices and other information learned 

6 from the Center to support and accelerate efforts to 

7 adopt, implement, and effectively utilize health infor8 mation technology that allows for the electronic ex9 change and use of information in compliance with 

10 standards, implementation specifications, and certifi11 cation criteria adopted under section 3004. Activities 

12 conducted under this subsection shall be consistent 

13 with the strategic plan developed by the National 

14 Coordinator (and, as available) under section 3001. 

15 ‘‘(2) AFFILIATION.—Regional centers shall be 

16 affiliated with any United States-based nonprofit in17 stitution or organization, or group thereof, that ap18 plies and is awarded financial assistance under this 

19 section. Individual awards shall be decided on the 

20 basis of merit. 

21 ‘‘(3) OBJECTIVE.—The objective of the regional 

22 centers is to enhance and promote the adoption of 

23 health information technology through— 

24 ‘‘(A) assistance with the implementation, 

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1 nance of health information technology, includ2 ing electronic health records, to healthcare pro3 viders nationwide; 

4 ‘‘(B) broad participation of individuals 

5 from industry, universities, and State govern6 ments; 

7 ‘‘(C) active dissemination of best practices 

8 and research on the implementation, effective 

9 use, upgrading, and ongoing maintenance of 

10 health information technology, including elec11 tronic health records, to health care providers 

12 in order to improve the quality of healthcare 

13 and protect the privacy and security of health 

14 information; 

15 ‘‘(D) participation, to the extent prac16 ticable, in health information exchanges; 

17 ‘‘(E) utilization, when appropriate, of the 

18 expertise and capability that exists in federal 

19 agencies other than the Department; and 

20 ‘‘(F) integration of health information 

21 technology, including electronic health records, 

22 into the initial and ongoing training of health 

23 professionals and others in the healthcare in24 dustry that would be instrumental to improving 

25 the quality of healthcare through the smooth 


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1 and accurate electronic use and exchange of 

2 health information. 

3 ‘‘(4) REGIONAL ASSISTANCE.—Each regional 

4 center shall aim to provide assistance and education 

5 to all providers in a region, but shall prioritize any 

6 direct assistance first to the following: 

7 ‘‘(A) Public or not-for-profit hospitals or 

8 critical access hospitals. 

9 ‘‘(B) Federally qualified health centers (as 

10 defined in section 1861(aa)(4) of the Social Se11 curity Act). 

12 ‘‘(C) Entities that are located in rural and 

13 other areas that serve uninsured, underinsured, 

14 and medically underserved individuals (regard15 less of whether such area is urban or rural). 

16 ‘‘(D) Individual or small group practices 

17 (or a consortium thereof) that are primarily fo18 cused on primary care. 

19 ‘‘(5) FINANCIAL SUPPORT.—The Secretary may 

20 provide financial support to any regional center cre21 ated under this subsection for a period not to exceed 

22 four years. The Secretary may not provide more 

23 than 50 percent of the capital and annual operating 

24 and maintenance funds required to create and main25 tain such a center, except in an instance of national 


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1 economic conditions which would render this cost2 share requirement detrimental to the program and 

3 upon notification to Congress as to the justification 

4 to waive the cost-share requirement. 

5 ‘‘(6) NOTICE OF PROGRAM DESCRIPTION AND

6 AVAILABILITY OF FUNDS.—The Secretary shall pub7 lish in the Federal Register, not later than 90 days 

8 after the date of the enactment of this Act, a draft 

9 description of the program for establishing regional 

10 centers under this subsection. Such description shall 

11 include the following: 

12 ‘‘(A) A detailed explanation of the program 

13 and the programs goals. 

14 ‘‘(B) Procedures to be followed by the ap15 plicants. 

16 ‘‘(C) Criteria for determining qualified ap17 plicants. 

18 ‘‘(D) Maximum support levels expected to 

19 be available to centers under the program. 

20 ‘‘(7) APPLICATION REVIEW.—The Secretary 

21 shall subject each application under this subsection 

22 to merit review. In making a decision whether to ap23 prove such application and provide financial support, 

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1 its of the application, including those portions of the 

2 application regarding— 

3 ‘‘(A) the ability of the applicant to provide 

4 assistance under this subsection and utilization 

5 of health information technology appropriate to 

6 the needs of particular categories of health care 

7 providers; 

8 ‘‘(B) the types of service to be provided to 

9 health care providers; 

10 ‘‘(C) geographical diversity and extent of 

11 service area; and 

12 ‘‘(D) the percentage of funding and 

13 amount of in-kind commitment from other 

14 sources. 

15 ‘‘(8) BIENNIAL EVALUATION.—Each regional 

16 center which receives financial assistance under this 

17 subsection shall be evaluated biennially by an evalua18 tion panel appointed by the Secretary. Each evalua19 tion panel shall be composed of private experts, none 

20 of whom shall be connected with the center involved, 

21 and of Federal officials. Each evaluation panel shall 

22 measure the involved center’s performance against 

23 the objective specified in paragraph (3). The Sec24 retary shall not continue to provide funding to a re25 gional center unless its evaluation is overall positive. 


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1 ‘‘(9) CONTINUING SUPPORT.—After the second 

2 year of assistance under this subsection a regional 

3 center may receive additional support under this 

4 subsection if it has received positive evaluations and 

5 a finding by the Secretary that continuation of Fed6 eral funding to the center was in the best interest 

7 of provision of health information technology exten8 sion services. 

9 ‘‘SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFOR10 MATION TECHNOLOGY. 

11 ‘‘(a) IN GENERAL.—The Secretary, acting through 

12 the National Coordinator, shall establish a program in ac13 cordance with this section to facilitate and expand the 

14 electronic movement and use of health information among 

15 organizations according to nationally recognized stand16 ards. 

17 ‘‘(b) PLANNING GRANTS.—The Secretary may award 

18 a grant to a State or qualified State-designated entity (as 

19 described in subsection (d)) that submits an application 

20 to the Secretary at such time, in such manner, and con21 taining such information as the Secretary may specify, for 

22 the purpose of planning activities described in subsection 

23 (b). 


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1 ‘‘(c) IMPLEMENTATION GRANTS.—The Secretary 

2 may award a grant to a State or qualified State designated 

3 entity that— 

4 ‘‘(1) has submitted, and the Secretary has ap5 proved, a plan described in subsection (c) (regardless 

6 of whether such plan was prepared using amounts 

7 awarded under paragraph (1)); and 

8 ‘‘(2) submits an application at such time, in 

9 such manner, and containing such information as 

10 the Secretary may specify. 

11 ‘‘(d) USE OF FUNDS.—Amounts received under a 

12 grant under subsection (a)(3) shall be used to conduct ac13 tivities to facilitate and expand the electronic movement 

14 and use of health information among organizations ac15 cording to nationally recognized standards through activi16 ties that include— 

17 ‘‘(1) enhancing broad and varied participation 

18 in the authorized and secure nationwide electronic 

19 use and exchange of health information; 

20 ‘‘(2) identifying State or local resources avail21 able towards a nationwide effort to promote health 

22 information technology; 

23 ‘‘(3) complementing other Federal grants, pro24 grams, and efforts towards the promotion of health 

25 information technology; 


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1 ‘‘(4) providing technical assistance for the de2 velopment and dissemination of solutions to barriers 

3 to the exchange of electronic health information; 

4 ‘‘(5) promoting effective strategies to adopt and 

5 utilize health information technology in medically 

6 underserved communities; 

7 ‘‘(6) assisting patients in utilizing health infor8 mation technology; 

9 ‘‘(7) encouraging clinicians to work with Health 

10 Information Technology Regional Extension Centers 

11 as described in section 3012, to the extent they are 

12 available and valuable; 

13 ‘‘(8) supporting public health agencies’ author14 ized use of and access to electronic health informa15 tion; 

16 ‘‘(9) promoting the use of electronic health 

17 records for quality improvement including through 

18 quality measures reporting; 

19 ‘‘(10) establishing and supporting health record 

20 banking models to further consumer-based consent 

21 models that promote lifetime access to qualified 

22 health records, if such activities are included in the 

23 plan described in subsection (e), and may contain 

24 smart card functionality; and 


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1 ‘‘(11) 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 (a)(2) and (a)(3), a 

21 State or qualified State-designated entity shall consult 

22 with and 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 subsection (a) 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 (a)(3) 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 Director of the Centers for 

10 Medicare & Medicaid Services (or his or 

11 her designee), in the case of an entity par12 ticipating in the Medicare program under 

13 title XVIII of the Social Security Act or 

14 the Medicaid program under title XIX of 

15 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 3005) applicable to 


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1 the exchange of information, improves the qual2 ity of health care, such as promoting care co3 ordination; 

4 ‘‘(C) comply with such other requirements 

5 as the entity or the Secretary may require; 

6 ‘‘(D) include a plan on how healthcare pro7 viders involved intend to maintain and support 

8 the certified EHR technology over time; and 

9 ‘‘(E) include a plan on how the healthcare 

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 (i). 

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 (a). 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 (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 

17 limited by applicable State law, amounts deposited into a 

18 Loan Fund under this subsection may only be used for 

19 the 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, 

8 a local obligation (all of the proceeds of which fi9 nance a project eligible for assistance under this 

10 subsection) if the guarantee or purchase would im11 prove credit market access or reduce the interest 

12 rate applicable to 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 depos17 ited into the Loan Fund. 

18 ‘‘(4) To earn interest on the amounts deposited 

19 into the Loan Fund. 

20 ‘‘(5) To make reimbursements described in sub21 section (g)(4)(A). 

22 ‘‘(g) ADMINISTRATION OF LOAN FUNDS.— 

23 ‘‘(1) COMBINED FINANCIAL ADMINISTRATION.— 

24 An eligible entity may (as a convenience and to 

25 avoid unnecessary administrative costs) combine, in 


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1 accordance with applicable State law, the financial 

2 administration of a Loan Fund established under 

3 this subsection with the financial administration of 

4 any other revolving fund established by the entity if 

5 otherwise not prohibited by the law under which the 

6 Loan Fund was established. 

7 ‘‘(2) COST OF ADMINISTERING FUND.—Each el8 igible entity may annually use not to exceed 4 per9 cent of the funds provided to the entity under a 

10 grant under this subsection to pay the reasonable 

11 costs of the administration of the programs under 

12 this section, including the recovery of reasonable 

13 costs expended to establish a Loan Fund which are 

14 incurred after the 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 

18 out the provisions of this section, including— 

19 ‘‘(A) provisions to ensure that each eligible 

20 entity commits and expends funds allotted to 

21 the entity under this subsection as efficiently as 

22 possible in accordance with this title and appli23 cable 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 con4 tributions from private sector entities, except 

5 that such entities may not specify the recipient 

6 or recipients of any loan issued under this sub7 section. An eligible entity may agree to reim8 burse a private sector entity for any contribu9 tion made under this subparagraph, except that 

10 the amount of such reimbursement may not be 

11 greater than the principal amount of the con12 tribution made. 

13 ‘‘(B) AVAILABILITY OF INFORMATION.— 

14 An eligible entity shall make publicly available 

15 the identity of, and amount contributed by, any 

16 private sector entity under subparagraph (A) 

17 and may issue letters of commendation or make 

18 other awards (that have no financial value) to 

19 any such entity. 

20 ‘‘(h) MATCHING REQUIREMENTS.— 

21 ‘‘(1) IN GENERAL.—The National Coordinator 

22 may not make a grant under subsection (a) to an el23 igible entity unless the entity agrees to make avail24 able (directly or through donations from public or 

25 private entities) non-Federal contributions in cash to 


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1 the costs of carrying out the activities for which the 

2 grant is awarded in an amount equal to not less 

3 than $1 for each $5 of Federal funds provided under 

4 the grant. 

5 ‘‘(2) DETERMINATION OF AMOUNT OF NON6 FEDERAL CONTRIBUTION.—In determining the 

7 amount of non-Federal contributions that an eligible 

8 entity has provided pursuant to subparagraph (A), 

9 the National Coordinator may not include any 

10 amounts provided to the entity by the Federal Gov11 ernment. 

12 ‘‘(i) EFFECTIVE DATE.—The Secretary may not 

13 make an award under this section prior to January 1, 

14 2010. 

15 ‘‘SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE IN16 FORMATION TECHNOLOGY INTO CLINICAL 

17 EDUCATION. 

18 ‘‘(a) IN GENERAL.—The Secretary may award grants 

19 under this section to carry out demonstration projects to 

20 develop academic curricula integrating certified EHR 

21 technology in the clinical education of health professionals. 

22 Such awards shall be made on a competitive basis and 

23 pursuant to peer review. 

24 ‘‘(b) ELIGIBILITY.—To be eligible to receive a grant 

25 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, increase access to prevention, reduce 

8 chronic diseases, and enhance health care quality; 

9 ‘‘(3) be— 

10 ‘‘(A) a school of medicine, osteopathic 

11 medicine, dentistry, or pharmacy, a graduate 

12 program in behavioral or mental health, or any 

13 other graduate health professions school; 

14 ‘‘(B) a graduate school of nursing or phy15 sician assistant studies; 

16 ‘‘(C) a consortium of two or more schools 

17 described in subparagraph (A) or (B); or 

18 ‘‘(D) an institution with a graduate med19 ical education program in medicine, osteopathic 

20 medicine, dentistry, pharmacy, nursing, or phy21 sician assistance studies. 

22 ‘‘(4) provide for the collection of data regarding 

23 the effectiveness of the demonstration project to be 

24 funded under the grant in improving the safety of 

25 patients, the efficiency of health care delivery, and 


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1 in increasing the likelihood that graduates of the 

2 grantee will adopt and incorporate certified EHR 

3 technology, in the delivery of health care services; 

4 and 

5 ‘‘(5) provide matching funds in accordance with 

6 subsection (d). 

7 ‘‘(c) USE OF FUNDS.— 

8 ‘‘(1) IN GENERAL.—With respect to a grant 

9 under subsection (a), an eligible entity shall— 

10 ‘‘(A) use grant funds in collaboration with 

11 2 or more disciplines; and 

12 ‘‘(B) use grant funds to integrate certified 

13 EHR technology into community-based clinical 

14 education. 

15 ‘‘(2) LIMITATION.—An eligible entity shall not 

16 use amounts received under a grant under sub17 section (a) to purchase hardware, software, or serv18 ices. 

19 ‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 

20 provide more than 50 percent of the costs of any activity 

21 for which assistance is provided under subsection (a), ex22 cept in an instance of national economic conditions which 

23 would render the cost-share requirement under this sub24 section detrimental to the program and upon notification 


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1 to Congress as to the justification to waive the cost-share 

2 requirement. 

3 ‘‘(e) EVALUATION.—The Secretary shall take such 

4 action as may be necessary to evaluate the projects funded 

5 under this section and publish, make available, and dis6 seminate the results of such evaluations on as wide a basis 

7 as is practicable. 

8 ‘‘(f) REPORTS.—Not later than 1 year after the date 

9 of enactment of this title, and annually thereafter, the Sec10 retary shall submit to the Committee on Health, Edu11 cation, Labor, and Pensions and the Committee on Fi12 nance of the Senate, and the Committee on Energy and 

13 Commerce of the House of Representatives a report 

14 that— 

15 ‘‘(1) describes the specific projects established 

16 under this section; and 

17 ‘‘(2) contains recommendations for Congress 

18 based on the evaluation conducted under subsection 

19 (e). 

20 ‘‘SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS 

21 ON HEALTH CARE. 

22 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

23 with the Director of the National Science Foundation, 

24 shall provide assistance to institutions of higher education 

25 (or consortia thereof) to establish or expand medical 


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1 health informatics education programs, including certifi2 cation, undergraduate, and masters degree programs, for 

3 both health care and information technology students to 

4 ensure the rapid and effective utilization and development 

5 of health information technologies (in the United States 

6 health care infrastructure). 

7 ‘‘(b) ACTIVITIES.—Activities for which assistance 

8 may be provided under subsection (a) may include the fol9 lowing: 

10 ‘‘(1) Developing and revising curricula in med11 ical health informatics and related disciplines. 

12 ‘‘(2) Recruiting and retaining students to the 

13 program involved. 

14 ‘‘(3) Acquiring equipment necessary for student 

15 instruction in these programs, including the installa16 tion of testbed networks for student use. 

17 ‘‘(4) Establishing or enhancing bridge programs 

18 in the health informatics fields between community 

19 colleges and universities. 

20 ‘‘(c) PRIORITY.—In providing assistance under sub21 section (a), the Secretary shall give preference to the fol22 lowing: 

23 ‘‘(1) Existing education and training programs. 

24 ‘‘(2) Programs designed to be completed in less 

25 than six months. 


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1 ‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 

2 provide more than 50 percent of the costs of any activity 

3 for which assistance is provided under subsection (a), ex4 cept in an instance of national economic conditions which 

5 would render the cost-share requirement under this sub6 section detrimental to the program and upon notification 

7 to Congress as to the justification to waive the cost-share 

8 requirement. 

9 ‘‘SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS. 

10 ‘‘(a) REPORTS.—The Secretary may require that an 

11 entity receiving assistance under this title shall submit to 

12 the Secretary, not later than the date that is 1 year after 

13 the date of receipt of such assistance, a report that in14 cludes— 

15 ‘‘(1) an analysis of the effectiveness of such ac16 tivities for which the entity receives such assistance, 

17 as compared to the goals for such activities; and 

18 ‘‘(2) an analysis of the impact of the project on 

19 healthcare quality and safety. 

20 ‘‘(b) REQUIREMENT TO IMPROVE QUALITY OF CARE

21 AND DECREASE IN COSTS.—The National Coordinator 

22 shall annually evaluate the activities conducted under this 

23 title and shall, in awarding grants, implement the lessons 

24 learned from such evaluation in a manner so that awards 

25 made subsequent to each such evaluation are made in a 


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1 manner that, in the determination of the National Coordi2 nator, will result in the greatest improvement in the qual3 ity and efficiency of health care. 

4 ‘‘SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS. 

5 ‘‘For the purposes of carrying out this subtitle, there 

6 is authorized to be appropriated such sums as may be nec7 essary for each of the fiscal years 2009 through 2013. 

8 Amounts so appropriated shall remain available until ex9 pended.’’. 

10 Subtitle D—Privacy 

11 SEC. 13400. DEFINITIONS. 

12 In this subtitle, except as specified otherwise: 

13 (1) BREACH.—The term ‘‘breach’’ means the 

14 unauthorized acquisition, access, use, or disclosure 

15 of protected health information which compromises 

16 the security, privacy, or integrity of protected health 

17 information maintained by or on behalf of a person. 

18 Such term does not include any unintentional acqui19 sition, access, use, or disclosure of such information 

20 by an employee or agent of the covered entity or 

21 business associate involved if such acquisition, ac22 cess, use, or disclosure, respectively, was made in 

23 good faith and within the course and scope of the 

24 employment or other contractual relationship of such 

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1 tity or business associate and if such information is 

2 not further acquired, accessed, used, or disclosed by 

3 such employee or agent. 

4 (2) BUSINESS ASSOCIATE.—The term ‘‘business 

5 associate’’ has the meaning given such term in sec6 tion 160.103 of title 45, Code of Federal Regula7 tions. 

8 (3) COVERED ENTITY.—The term ‘‘covered en9 tity’’ has the meaning given such term in section 

10 160.103 of title 45, Code of Federal Regulations. 

11 (4) DISCLOSE.—The terms ‘‘disclose’’ and ‘‘dis12 closure’’ have the meaning given the term ‘‘disclo13 sure’’ in section 160.103 of title 45, Code of Federal 

14 Regulations. 

15 (5) ELECTRONIC HEALTH RECORD.—The term 

16 ‘‘electronic health record’’ means an electronic 

17 record of health-related information on an individual 

18 that is created, gathered, managed, and consulted by 

19 authorized health care clinicians and staff. 

20 (6) HEALTH CARE OPERATIONS.—The term 

21 ‘‘health care operation’’ has the meaning given such 

22 term in section 164.501 of title 45, Code of Federal 

23 Regulations. 

24 (7) HEALTH CARE PROVIDER.—The term 

25 ‘‘health care provider’’ has the meaning given such 


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1 term in section 160.103 of title 45, Code of Federal 

2 Regulations. 

3 (8) HEALTH PLAN.—The term ‘‘health plan’’ 

4 has the meaning given such term in section 1171(5) 

5 of the Social Security Act. 

6 (9) NATIONAL COORDINATOR.—The term ‘‘Na7 tional Coordinator’’ means the head of the Office of 

8 the National Coordinator for Health Information 

9 Technology established under section 3001(a) of the 

10 Public Health Service Act, as added by section 

11 13101. 

12 (10) PAYMENT.—The term ‘‘payment’’ has the 

13 meaning given such term in section 164.501 of title 

14 45, Code of Federal Regulations. 

15 (11) PERSONAL HEALTH RECORD.—The term 

16 ‘‘personal health record’’ means an electronic record 

17 of individually identifiable health information on an 

18 individual that can be drawn from multiple sources 

19 and that is managed, shared, and controlled by or 

20 for the individual. 

21 (12) PROTECTED HEALTH INFORMATION.—The 

22 term ‘‘protected health information’’ has the mean23 ing given such term in section 160.103 of title 45, 

24 Code of Federal Regulations. 


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1 (13) SECRETARY.—The term ‘‘Secretary’’ 

2 means the Secretary of Health and Human Services. 

3 (14) SECURITY.—The term ‘‘security’’ has the 

4 meaning given such term in section 164.304 of title 

5 45, Code of Federal Regulations. 

6 (15) STATE.—The term ‘‘State’’ means each of 

7 the several States, the District of Columbia, Puerto 

8 Rico, the Virgin Islands, Guam, American Samoa, 

9 and the Northern Mariana Islands. 

10 (16) TREATMENT.—The term ‘‘treatment’’ has 

11 the meaning given such term in section 164.501 of 

12 title 45, Code of Federal Regulations. 

13 (17) USE.—The term ‘‘use’’ has the meaning 

14 given such term in section 160.103 of title 45, Code 

15 of Federal Regulations. 

16 (18) VENDOR OF PERSONAL HEALTH

17 RECORDS.—The term ‘‘vendor of personal health 

18 records’’ means an entity, other than a covered enti19 ty (as defined in paragraph (3)), that offers or 

20 maintains a personal health record. 


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1 PART I—IMPROVED PRIVACY PROVISIONS AND 

2 SECURITY PROVISIONS 

3 SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND 

4 PENALTIES TO BUSINESS ASSOCIATES OF 

5 COVERED ENTITIES; ANNUAL GUIDANCE ON 

6 SECURITY PROVISIONS. 

7 (a) APPLICATION OF SECURITY PROVISIONS.—Sec8 tions 164.308, 164.310, 164.312, and 164.316 of title 45, 

9 Code of Federal Regulations, shall apply to a business as10 sociate of a covered entity in the same manner that such 

11 sections apply to the covered entity. The additional re12 quirements of this title that relate to security and that 

13 are made applicable with respect to covered entities shall 

14 also be applicable to such a business associate and shall 

15 be incorporated into the business associate agreement be16 tween the business associate and the covered entity. 

17 (b) APPLICATION OF CIVIL AND CRIMINAL PEN18 ALTIES.—In the case of a business associate that violates 

19 any security provision specified in subsection (a), sections 

20 1176 and 1177 of the Social Security Act (42 U.S.C. 

21 1320d–5, 1320d–6) shall apply to the business associate 

22 with respect to such violation in the same manner such 

23 sections apply to a covered entity that violates such secu24 rity provision. 

25 (c) ANNUAL GUIDANCE.—For the first year begin26 ning after the date of the enactment of this Act and annuVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00320 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ally thereafter, the Secretary of Health and Human Serv2 ices shall, in consultation with industry stakeholders, an3 nually issue guidance on the most effective and appro4 priate technical safeguards for use in carrying out the sec5 tions referred to in subsection (a) and the security stand6 ards in subpart C of part 164 of title 45, Code of Federal 

7 Regulations, as such provisions are in effect as of the date 

8 before the enactment of this Act. 

9 SEC. 13402. NOTIFICATION IN THE CASE OF BREACH. 

10 (a) IN GENERAL.—A covered entity that accesses, 

11 maintains, retains, modifies, records, stores, destroys, or 

12 otherwise holds, uses, or discloses unsecured protected 

13 health information (as defined in subsection (h)(1)) shall, 

14 in the case of a breach of such information that is discov15 ered by the covered entity, notify each individual whose 

16 unsecured protected health information has been, or is 

17 reasonably believed by the covered entity to have been, 

18 accessed, acquired, or disclosed as a result of such breach. 

19 (b) NOTIFICATION OF COVERED ENTITY BY BUSI20 NESS ASSOCIATE.—A business associate of a covered enti21 ty that accesses, maintains, retains, modifies, records, 

22 stores, destroys, or otherwise holds, uses, or discloses un23 secured protected health information shall, following the 

24 discovery of a breach of such information, notify the cov25 ered entity of such breach. Such notice shall include the 


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1 identification of each individual whose unsecured protected 

2 health information has been, or is reasonably believed by 

3 the business associate to have been, accessed, acquired, 

4 or disclosed during such breach. 

5 (c) BREACHES TREATED AS DISCOVERED.—For pur6 poses of this section, a breach shall be treated as discov7 ered by a covered entity or by a business associate as of 

8 the first day on which such breach is known to such entity 

9 or associate, respectively, (including any person, other 

10 than the individual committing the breach, that is an em11 ployee, officer, or other agent of such entity or associate, 

12 respectively) or should reasonably have been known to 

13 such entity or associate (or person) to have occurred. 

14 (d) TIMELINESS OF NOTIFICATION.— 

15 (1) IN GENERAL.—Subject to subsection (g), all 

16 notifications required under this section shall be 

17 made without unreasonable delay and in no case 

18 later than 60 calendar days after the discovery of a 

19 breach by the covered entity involved (or business 

20 associate involved in the case of a notification re21 quired under subsection (b)). 

22 (2) BURDEN OF PROOF.—The covered entity in23 volved (or business associate involved in the case of 

24 a notification required under subsection (b)), shall 

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1 tions were made as required under this part, includ2 ing evidence demonstrating the necessity of any 

3 delay. 

4 (e) METHODS OF NOTICE.— 

5 (1) INDIVIDUAL NOTICE.—Notice required 

6 under this section to be provided to an individual, 

7 with respect to a breach, shall be provided promptly 

8 and in the following form: 

9 (A) Written notification by first-class mail 

10 to the individual (or the next of kin of the indi11 vidual if the individual is deceased) at the last 

12 known address of the individual or the next of 

13 kin, respectively, or, if specified as a preference 

14 by the individual, by electronic mail. The notifi15 cation may be provided in one or more mailings 

16 as information is available. 

17 (B) In the case in which there is insuffi18 cient, or out-of-date contact information (in19 cluding a phone number, email address, or any 

20 other form of appropriate communication) that 

21 precludes direct written (or, if specified by the 

22 individual under subparagraph (A), electronic) 

23 notification to the individual, a substitute form 

24 of notice shall be provided, including, in the 

25 case that there are 10 or more individuals for 


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1 which there is insufficient or out-of-date contact 

2 information, a conspicuous posting for a period 

3 determined by the Secretary on the home page 

4 of the Web site of the covered entity involved or 

5 notice in major print or broadcast media, in6 cluding major media in geographic areas where 

7 the individuals affected by the breach likely re8 side. Such a notice in media or web posting will 

9 include a toll-free phone number where an indi10 vidual can learn whether or not the individual’s 

11 unsecured protected health information is pos12 sibly included in the breach. 

13 (C) In any case deemed by the covered en14 tity involved to require urgency because of pos15 sible imminent misuse of unsecured protected 

16 health information, the covered entity, in addi17 tion to notice provided under subparagraph (A), 

18 may provide information to individuals by tele19 phone or other means, as appropriate. 

20 (2) MEDIA NOTICE.—Notice shall be provided 

21 to prominent media outlets serving a State or juris22 diction, following the discovery of a breach described 

23 in subsection (a), if the unsecured protected health 

24 information of more than 500 residents of such 

25 State or jurisdiction is, or is reasonably believed to 


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1 have been, accessed, acquired, or disclosed during 

2 such breach. 

3 (3) NOTICE TO SECRETARY.—Notice shall be 

4 provided to the Secretary by covered entities of un5 secured protected health information that has been 

6 acquired or disclosed in a breach. If the breach was 

7 with respect to 500 or more individuals than such 

8 notice must be provided immediately. If the breach 

9 was with respect to less than 500 individuals, the 

10 covered entity may maintain a log of any such 

11 breach occurring and annually submit such a log to 

12 the Secretary documenting such breaches occurring 

13 during the year involved. 

14 (4) POSTING ON HHS PUBLIC WEBSITE.—The 

15 Secretary shall make available to the public on the 

16 Internet website of the Department of Health and 

17 Human Services a list that identifies each covered 

18 entity involved in a breach described in subsection 

19 (a) in which the unsecured protected health informa20 tion of more than 500 individuals is acquired or dis21 closed. 

22 (f) CONTENT OF NOTIFICATION.—Regardless of the 

23 method by which notice is provided to individuals under 

24 this section, notice of a breach shall include, to the extent 

25 possible, the following: 


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1 (1) A brief description of what happened, in2 cluding the date of the breach and the date of the 

3 discovery of the breach, if known. 

4 (2) A description of the types of unsecured pro5 tected health information that were involved in the 

6 breach (such as full name, Social Security number, 

7 date of birth, home address, account number, or dis8 ability code). 

9 (3) The steps individuals should take to protect 

10 themselves from potential harm resulting from the 

11 breach. 

12 (4) A brief description of what the covered enti13 ty involved is doing to investigate the breach, to 

14 mitigate losses, and to protect against any further 

15 breaches. 

16 (5) Contact procedures for individuals to ask 

17 questions or learn additional information, which 

18 shall include a toll-free telephone number, an e-mail 

19 address, Web site, or postal address. 

20 (g) DELAY OF NOTIFICATION AUTHORIZED FOR LAW

21 ENFORCEMENT PURPOSES.—If a law enforcement official 

22 determines that a notification, notice, or posting required 

23 under this section would impede a criminal investigation 

24 or cause damage to national security, such notification, 

25 notice, or posting shall be delayed in the same manner 


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1 as provided under section 164.528(a)(2) of title 45, Code 

2 of Federal Regulations, in the case of a disclosure covered 

3 under such section. 

4 (h) UNSECURED PROTECTED HEALTH INFORMA5 TION.— 

6 (1) DEFINITION.— 

7 (A) IN GENERAL.—Subject to subpara8 graph (B), for purposes of this section, the 

9 term ‘‘unsecured protected health information’’ 

10 means protected health information that is not 

11 secured through the use of a technology or 

12 methodology specified by the Secretary in the 

13 guidance issued under paragraph (2). 

14 (B) EXCEPTION IN CASE TIMELY GUID15 ANCE NOT ISSUED.—In the case that the Sec16 retary does not issue guidance under paragraph 

17 (2) by the date specified in such paragraph, for 

18 purposes of this section, the term ‘‘unsecured 

19 protected health information’’ shall mean pro20 tected health information that is not secured by 

21 a technology standard that renders protected 

22 health information unusable, unreadable, or in23 decipherable to unauthorized individuals and is 

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1 oping organization that is accredited by the 

2 American National Standards Institute. 

3 (2) GUIDANCE.—For purposes of paragraph (1) 

4 and section 13407(f)(3), not later than the date that 

5 is 60 days after the date of the enactment of this 

6 Act, the Secretary shall, after consultation with 

7 stakeholders, issue (and annually update) guidance 

8 specifying the technologies and methodologies that 

9 render protected health information unusable, 

10 unreadable, or indecipherable to unauthorized indi11 viduals. 

12 (i) REPORT TO CONGRESS ON BREACHES.— 

13 (1) IN GENERAL.—Not later than 12 months 

14 after the date of the enactment of this Act and an15 nually thereafter, the Secretary shall prepare and 

16 submit to the Committee on Finance and the Com17 mittee on Health, Education, Labor, and Pensions 

18 of the Senate and the Committee on Ways and 

19 Means and the Committee on Energy and Commerce 

20 of the House of Representatives a report containing 

21 the information described in paragraph (2) regard22 ing breaches for which notice was provided to the 

23 Secretary under subsection (e)(3). 


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1 (2) INFORMATION.—The information described 

2 in this paragraph regarding breaches specified in 

3 paragraph (1) shall include— 

4 (A) the number and nature of such 

5 breaches; and 

6 (B) actions taken in response to such 

7 breaches. 

8 (j) REGULATIONS; EFFECTIVE DATE.—To carry out 

9 this section, the Secretary of Health and Human Services 

10 shall promulgate interim final regulations by not later 

11 than the date that is 180 days after the date of the enact12 ment of this title. The provisions of this section shall apply 

13 to breaches that are discovered on or after the date that 

14 is 30 days after the date of publication of such interim 

15 final regulations. 

16 SEC. 13403. EDUCATION ON HEALTH INFORMATION PRI17 VACY. 

18 (a) REGIONAL OFFICE PRIVACY ADVISORS.—Not 

19 later than 6 months after the date of the enactment of 

20 this Act, the Secretary shall designate an individual in 

21 each regional office of the Department of Health and 

22 Human Services to offer guidance and education to cov23 ered entities, business associates, and individuals on their 

24 rights and responsibilities related to Federal privacy and 

25 security requirements for protected health information. 


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1 (b) EDUCATION INITIATIVE ON USES OF HEALTH IN2 FORMATION.—Not later than 12 months after the date of 

3 the enactment of this Act, the Office for Civil Rights with4 in the Department of Health and Human Services shall 

5 develop and maintain a multi-faceted national education 

6 initiative to enhance public transparency regarding the 

7 uses of protected health information, including programs 

8 to educate individuals about the potential uses of their 

9 protected health information, the effects of such uses, and 

10 the rights of individuals with respect to such uses. Such 

11 programs shall be conducted in a variety of languages and 

12 present information in a clear and understandable man13 ner. 

14 SEC. 13404. APPLICATION OF PRIVACY PROVISIONS AND 

15 PENALTIES TO BUSINESS ASSOCIATES OF 

16 COVERED ENTITIES. 

17 (a) APPLICATION OF CONTRACT REQUIREMENTS.— 

18 In the case of a business associate of a covered entity that 

19 obtains or creates protected health information pursuant 

20 to a written contract (or other written arrangement) de21 scribed in section 164.502(e)(2) of title 45, Code of Fed22 eral Regulations, with such covered entity, the business 

23 associate may use and disclose such protected health infor24 mation only if such use or disclosure, respectively, is in 

25 compliance with each applicable requirement of section 


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1 164.504(e) of such title. The additional requirements of 

2 this subtitle that relate to privacy and that are made ap3 plicable with respect to covered entities shall also be appli4 cable to such a business associate and shall be incor5 porated into the business associate agreement between the 

6 business associate and the covered entity. 

7 (b) APPLICATION OF KNOWLEDGE ELEMENTS ASSO8 CIATED WITH CONTRACTS.—Section 164.504(e)(1)(ii) of 

9 title 45, Code of Federal Regulations, shall apply to a 

10 business associate described in subsection (a), with respect 

11 to compliance with such subsection, in the same manner 

12 that such section applies to a covered entity, with respect 

13 to compliance with the standards in sections 164.502(e) 

14 and 164.504(e) of such title, except that in applying such 

15 section 164.504(e)(1)(ii) each reference to the business as16 sociate, with respect to a contract, shall be treated as a 

17 reference to the covered entity involved in such contract. 

18 (c) APPLICATION OF CIVIL AND CRIMINAL PEN19 ALTIES.—In the case of a business associate that violates 

20 any provision of subsection (a) or (b), the provisions of 

21 sections 1176 and 1177 of the Social Security Act (42 

22 U.S.C. 1320d–5, 1320d–6) shall apply to the business as23 sociate with respect to such violation in the same manner 

24 as such provisions apply to a person who violates a provi25 sion of part C of title XI of such Act. 


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1 SEC. 13405. RESTRICTIONS ON CERTAIN DISCLOSURES AND 

2 SALES OF HEALTH INFORMATION; ACCOUNT3 ING OF CERTAIN PROTECTED HEALTH IN4 FORMATION DISCLOSURES; ACCESS TO CER5 TAIN INFORMATION IN ELECTRONIC FOR6 MAT. 

7 (a) REQUESTED RESTRICTIONS ON CERTAIN DIS8 CLOSURES OF HEALTH INFORMATION.—In the case that 

9 an individual requests under paragraph (a)(1)(i)(A) of 

10 section 164.522 of title 45, Code of Federal Regulations, 

11 that a covered entity restrict the disclosure of the pro12 tected health information of the individual, notwith13 standing paragraph (a)(1)(ii) of such section, the covered 

14 entity must comply with the requested restriction if— 

15 (1) except as otherwise required by law, the dis16 closure is to a health plan for purposes of carrying 

17 out payment or health care operations (and is not 

18 for purposes of carrying out treatment); and 

19 (2) the protected health information pertains 

20 solely to a health care item or service for which the 

21 health care provider involved has been paid out of 

22 pocket in full. 

23 (b) DISCLOSURES REQUIRED TO BE LIMITED TO

24 THE LIMITED DATA SET OR THE MINIMUM NEC25 ESSARY.— 

26 (1) IN GENERAL.— 


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1 (A) IN GENERAL.—Subject to subpara2 graph (B), a covered entity shall be treated as 

3 being in compliance with section 164.502(b)(1) 

4 of title 45, Code of Federal Regulations, with 

5 respect to the use, disclosure, or request of pro6 tected health information described in such sec7 tion, only if the covered entity limits such pro8 tected health information, to the extent prac9 ticable, to the limited data set (as defined in 

10 section 164.514(e)(2) of such title) or, if needed 

11 by such entity, to the minimum necessary to ac12 complish the intended purpose of such use, dis13 closure, or request, respectively. 

14 (B) GUIDANCE.—Not later than 18 

15 months after the date of the enactment of this 

16 section, the Secretary shall issue guidance on 

17 what constitutes ‘‘minimum necessary’’ for pur18 poses of subpart E of part 164 of title 45, Code 

19 of Federal Regulation. In issuing such guidance 

20 the Secretary shall take into consideration the 

21 guidance under section 13424(c) and the infor22 mation necessary to improve patient outcomes 

23 and to detect, prevent, and manage chronic dis24 ease. 


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1 (C) SUNSET.—Subparagraph (A) shall not 

2 apply on and after the effective date on which 

3 the Secretary issues the guidance under sub4 paragraph (B). 

5 (2) DETERMINATION OF MINIMUM NEC6 ESSARY.—For purposes of paragraph (1), in the 

7 case of the disclosure of protected health informa8 tion, the covered entity or business associate dis9 closing such information shall determine what con10 stitutes the minimum necessary to accomplish the 

11 intended purpose of such disclosure. 

12 (3) APPLICATION OF EXCEPTIONS.—The excep13 tions described in section 164.502(b)(2) of title 45, 

14 Code of Federal Regulations, shall apply to the re15 quirement under paragraph (1) as of the effective 

16 date described in section 13423 in the same manner 

17 that such exceptions apply to section 164.502(b)(1) 

18 of such title before such date. 

19 (4) RULE OF CONSTRUCTION.—Nothing in this 

20 subsection shall be construed as affecting the use, 

21 disclosure, or request of protected health information 

22 that has been de-identified. 

23 (c) ACCOUNTING OF CERTAIN PROTECTED HEALTH

24 INFORMATION DISCLOSURES REQUIRED IF COVERED EN25 TITY USES ELECTRONIC HEALTH RECORD.— 


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1 ‘‘(1) IN GENERAL.—In applying section 

2 164.528 of title 45, Code of Federal Regulations, in 

3 the case that a covered entity uses or maintains an 

4 electronic health record with respect to protected 

5 health information— 

6 ‘‘(A) the exception under paragraph 

7 (a)(1)(i) of such section shall not apply to dis8 closures through an electronic health record 

9 made by such entity of such information; and 

10 ‘‘(B) an individual shall have a right to re11 ceive an accounting of disclosures described in 

12 such paragraph of such information made by 

13 such covered entity during only the three years 

14 prior to the date on which the accounting is re15 quested. 

16 ‘‘(2) REGULATIONS.—The Secretary shall pro17 mulgate regulations on what disclosures must be in18 cluded in an accounting referred to in paragraph 

19 (1)(A) and what information must be collected about 

20 each such disclosure not later than 18 months after 

21 the date on which the Secretary adopts standards on 

22 accounting for disclosure described in the section 

23 3002(b)(2)(B)(iv) of the Public Health Service Act, 

24 as added by section 13101. Such regulations shall 

25 only require such information to be collected through 


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1 an electronic health record in a manner that takes 

2 into account the interests of individuals in learning 

3 when their protected health information was dis4 closed and to whom it was disclosed, and the useful5 ness of such information to the individual, and takes 

6 into account the administrative and cost burden of 

7 accounting for such disclosures. 

8 ‘‘(3) CONSTRUCTION.—Nothing in this sub9 section shall be construed as— 

10 ‘‘(A) requiring a covered entity to account 

11 for disclosures of protected health information 

12 that are not made by such covered entity; or 

13 ‘‘(B) requiring a business associate of a 

14 covered entity to account for disclosures of pro15 tected health information that are not made by 

16 such business associate. 

17 ‘‘(4) REASONABLE FEE.—A covered entity may 

18 impose a reasonable fee on an individual for an ac19 counting performed under paragraph (1)(B). Any 

20 such fee shall not be greater than the entity’s labor 

21 costs in responding to the request. 

22 ‘‘(5) 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 

6 entity 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 ‘‘(C) LATER DATE.—The Secretary may 

16 set an effective date that is later that the date 

17 specified under subparagraph (A) or (B) if the 

18 Secretary determines that such later date it 

19 necessary, but in no case may the date specified 

20 under— 

21 ‘‘(i) subparagraph (A) be later than 

22 2018; or 

23 ‘‘(ii) subparagraph (B) be later than 

24 2014. 


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1 (d) REVIEW OF HEALTH CARE OPERATIONS.—Not 

2 later than 18 months after the date of the enactment of 

3 this title, the Secretary shall review and evaluate the defi4 nition of health care operations under section 164.501 of 

5 title 45, Code of Federal Regulations, and to the extent 

6 appropriate, eliminate by regulation activities that can 

7 reasonably and efficiently be conducted through the use 

8 of information that is de-identified (in accordance with the 

9 requirements of section 164.514(b) of such title) or that 

10 should require a valid authorization for use or disclosure. 

11 In promulgating such regulations, the Secretary shall not 

12 require that data be de-identified or require valid author13 ization for use or disclosure for activities within a covered 

14 entity described in paragraph (1) of the definition of 

15 health care operations under such section 164.501. In pro16 mulgating such regulations, the Secretary may choose to 

17 narrow or clarify activities that the Secretary chooses to 

18 retain in the definition of health care operations and the 

19 Secretary shall take into account the report under section 

20 13424(d). In such regulations the Secretary shall specify 

21 the date on which such regulations shall apply to disclo22 sures made by a covered entity, but in no case would such 

23 date be sooner than the date that is 24 months after the 

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1 section may be construed to supersede any provision under 

2 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 

8 shall not directly or indirectly receive remuneration 

9 in exchange for any protected health information of 

10 an individual unless the covered entity obtained from 

11 the individual, in accordance with section 164.508 of 

12 title 45, Code of Federal Regulations, a valid au13 thorization that includes, in accordance with such 

14 section, a specification of whether the protected 

15 health information can be further exchanged for re16 muneration by the entity receiving protected health 

17 information of that 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 

22 in sections 164.501, 164.512(i), and 164.512(b) 

23 of 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 

2 prevent protected health information from inap3 propriate 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 defi7 nition of healthcare operations in section 

8 164.501 of title 45, Code of Federal Regula9 tions. 

10 (D) The purpose of the exchange is for re11 muneration that is provided by a covered entity 

12 to a business associate for activities involving 

13 the exchange of protected health information 

14 that the business associate undertakes on behalf 

15 of and at the specific request of the covered en16 tity pursuant to a business associate agreement. 

17 (E) The purpose of the exchange is to pro18 vide an individual with a copy of the individ19 ual’s protected health information pursuant to 

20 section 164.524 of title 45, Code of Federal 

21 Regulations. 

22 (F) The purpose of the exchange is other23 wise determined by the Secretary in regulations 

24 to be similarly necessary and appropriate as the 


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1 exceptions provided in subparagraphs (A) 

2 through (E). 

3 (3) REGULATIONS.—Not later than 18 months 

4 after the date of enactment of this title, the Sec5 retary shall promulgate regulations to carry out this 

6 subsection. In promulgating such regulations, the 

7 Secretary— 

8 (A) shall evaluate the impact of restricting 

9 the exception described in paragraph (2)(A) to 

10 require that the price charged for the purposes 

11 described in such paragraph reflects the costs 

12 of the preparation and transmittal of the data 

13 for such purpose, on research or public health 

14 activities, including those conducted by or for 

15 the use of the Food and Drug Administration; 

16 and 

17 (B) may further restrict the exception de18 scribed in paragraph (2)(A) to require that the 

19 price charged for the purposes described in 

20 such paragraph reflects the costs of the prepa21 ration and transmittal of the data for such pur22 pose, if the Secretary finds that such further 

23 restriction will not impede such research or 

24 public health activities. 


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1 (4) EFFECTIVE DATE.—Paragraph (1) shall 

2 apply to exchanges occurring on or after the date 

3 that is 6 months after the date of the promulgation 

4 of final regulations implementing this subsection. 

5 (f) ACCESS TO CERTAIN INFORMATION IN ELEC6 TRONIC FORMAT.—In applying section 164.524 of title 

7 45, Code of Federal Regulations, in the case that a cov8 ered entity uses or maintains an electronic health record 

9 with respect to protected health information of an indi10 vidual— 

11 (1) the individual shall have a right to obtain 

12 from such covered entity a copy of such information 

13 in an electronic format; and 

14 (2) notwithstanding paragraph (c)(4) of such 

15 section, any fee that the covered entity may impose 

16 for providing such individual with a copy of such in17 formation (or a summary or explanation of such in18 formation) if such copy (or summary or explanation) 

19 is in an electronic form shall not be greater than the 

20 entity’s labor costs in responding to the request for 

21 the copy (or summary or explanation). 

22 SEC. 13406. CONDITIONS ON CERTAIN CONTACTS AS PART 

23 OF HEALTH CARE OPERATIONS. 

24 (a) MARKETING.— 


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1 (1) IN GENERAL.—A communication by a cov2 ered entity or business associate that is about a 

3 product or service and that encourages recipients of 

4 the communication to purchase or use the product 

5 or service shall not be considered a health care oper6 ation for purposes of subpart E of part 164 of title 

7 45, Code of Federal Regulations, unless the commu8 nication is made as described in subparagraph (i), 

9 (ii), or (iii) of paragraph (1) of the definition of 

10 marketing in section 164.501 of such title. 

11 (2) PAYMENT FOR CERTAIN COMMUNICA12 TIONS.—A communication by a covered entity or 

13 business associate that is described in subparagraph 

14 (i), (ii), or (iii) of paragraph (1) of the definition of 

15 marketing in section 164.501 of title 45, Code of 

16 Federal Regulations, shall not be considered a health 

17 care operation for purposes of subpart E of part 164 

18 of title 45, Code of Federal Regulations if the cov19 ered entity receives or has received direct or indirect 

20 payment in exchange for making such communica21 tion, except where— 

22 (A) such communication describes only a 

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1 cipient of the communication, or a family mem2 ber of such recipient; 

3 (B) each of the following conditions 

4 apply— 

5 (i) the communication is made by the 

6 covered entity; and 

7 (ii) the covered entity making such 

8 communication obtains from the recipient 

9 of the communication, in accordance with 

10 section 164.508 of title 45, Code of Fed11 eral Regulations, a valid authorization (as 

12 described in paragraph (b) of such section) 

13 with respect to such communication; or 

14 (C) each of the following conditions 

15 apply— 

16 (i) the communication is made on be17 half of the covered entity; 

18 (ii) the communication is consistent 

19 with the written contract (or other written 

20 arrangement described in section 

21 164.502(e)(2) of such title) between such 

22 business associate and covered entity; and 

23 (iii) the business associate making 

24 such communication, or the covered entity 

25 on behalf of which the communication is 


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1 made, obtains from the recipient of the 

2 communication, in accordance with section 

3 164.508 of title 45, Code of Federal Regu4 lations, a valid authorization (as described 

5 in paragraph (b) of such section) with re6 spect to such communication. 

7 (c) EFFECTIVE DATE.—This section shall apply to 

8 contracting occurring on or after the effective date speci9 fied under section 13423. 

10 SEC. 13407. 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 13424(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 13424(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 13402 shall 

23 apply to a notification required under subsection (a) and 

24 a vendor of personal health records, an entity described 

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1 scribed in subsection (b), with respect to a breach of secu2 rity under subsection (a) of unsecured PHR identifiable 

3 health information in such records maintained or offered 

4 by such vendor, in a manner specified by the Federal 

5 Trade Commission. 

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 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00347 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 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 13402(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 13402(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 Federal Trade Commis10 sion shall, in accordance with section 553 of title 5, 

11 United States Code, promulgate interim final regula12 tions by not later than the date that is 180 days 

13 after the date of the enactment of this section. The 

14 provisions of this section shall apply to breaches of 

15 security that are discovered on or after the date that 

16 is 30 days after the date of publication of such in17 terim final regulations. 

18 (2) SUNSET.—The provisions of this section 

19 shall not apply to breaches of security occurring on 

20 or after the earlier of the following the dates: 

21 (A) The date on which a standard relating 

22 to requirements for entities that are not covered 

23 entities that includes requirements relating to 

24 breach notification has been promulgated by the 

25 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. 13408. 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. 13409. CLARIFICATION OF APPLICATION OF WRONG4 FUL 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. 13410. 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 ‘‘(d) 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 (d)’’; 

9 (B) in paragraph (2)(A)— 

10 (i) after ‘‘subsection (a)(1)(C),’’, 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 (d)’’; 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 (d)’’ 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 ‘‘(e) 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. 13411. 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 PART II—RELATIONSHIP TO OTHER LAWS; REGU2 LATORY REFERENCES; EFFECTIVE DATE; RE3 PORTS 

4 SEC. 13421. RELATIONSHIP TO OTHER LAWS. 

5 (a) APPLICATION OF HIPAA STATE PREEMPTION.— 

6 Section 1178 of the Social Security Act (42 U.S.C. 

7 1320d–7) shall apply to a provision or requirement under 

8 this subtitle in the same manner that such section applies 

9 to a provision or requirement under part C of title XI of 

10 such Act or a standard or implementation specification 

11 adopted or established under sections 1172 through 1174 

12 of such Act. 

13 (b) HEALTH INSURANCE PORTABILITY AND AC14 COUNTABILITY ACT.—The standards governing the pri15 vacy and security of individually identifiable health infor16 mation promulgated by the Secretary under sections 

17 262(a) and 264 of the Health Insurance Portability and 

18 Accountability Act of 1996 shall remain in effect to the 

19 extent that they are consistent with this subtitle. The Sec20 retary shall by rule amend such Federal regulations as re21 quired to make such regulations consistent with this sub22 title. In carrying out the preceding sentence, the Secretary 

23 shall revise the definition of ‘‘psychotherapy notes’’ in sec24 tion 164.501 of title 45, Code of Federal Regulations, to 

25 include test data that is related to direct responses, scores, 

26 items, forms, protocols, manuals, or other materials that 


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1 are part of a mental health evaluation, as determined by 

2 the mental health professional providing treatment or 

3 evaluation. 

4 SEC. 13422. REGULATORY REFERENCES. 

5 Each reference in this subtitle to a provision of the 

6 Code of Federal Regulations refers to such provision as 

7 in effect on the date of the enactment of this title (or to 

8 the most recent update of such provision). 

9 SEC. 13423. EFFECTIVE DATE. 

10 Except as otherwise specifically provided, the provi11 sions of part I shall take effect on the date that is 12 

12 months after the date of the enactment of this title. 

13 SEC. 13424. STUDIES, REPORTS, GUIDANCE. 

14 (a) REPORT ON COMPLIANCE.— 

15 (1) IN GENERAL.—For the first year beginning 

16 after the date of the enactment of this Act and an17 nually thereafter, the Secretary shall prepare and 

18 submit to the Committee on Health, Education, 

19 Labor, and Pensions of the Senate and the Com20 mittee on Ways and Means and the Committee on 

21 Energy and Commerce of the House of Representa22 tives a report concerning complaints of alleged viola23 tions of law, including the provisions of this subtitle 

24 as well as the provisions of subparts C and E of part 

25 164 of title 45, Code of Federal Regulations, (as 


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1 such provisions are in effect as of the date of enact2 ment of this Act) relating to privacy and security of 

3 health information that are received by the Secretary 

4 during the year for which the report is being pre5 pared. Each such report shall include, with respect 

6 to such complaints received during the year— 

7 (A) the number of such complaints; 

8 (B) the number of such complaints re9 solved informally, a summary of the types of 

10 such complaints so resolved, and the number of 

11 covered entities that received technical assist12 ance from the Secretary during such year in 

13 order to achieve compliance with such provi14 sions and the types of such technical assistance 

15 provided; 

16 (C) the number of such complaints that 

17 have resulted in the imposition of civil monetary 

18 penalties or have been resolved through mone19 tary settlements, including the nature of the 

20 complaints involved and the amount paid in 

21 each penalty or settlement; 

22 (D) the number of compliance reviews con23 ducted and the outcome of each such review; 

24 (E) the number of subpoenas or inquiries 

25 issued; 


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1 (F) the Secretary’s plan for improving 

2 compliance with and enforcement of such provi3 sions for the following year; and 

4 (G) the number of audits performed and a 

5 summary of audit findings pursuant to section 

6 13411. 

7 (2) AVAILABILITY TO PUBLIC.—Each report 

8 under paragraph (1) shall be made available to the 

9 public on the Internet website of the Department of 

10 Health and Human Services. 

11 (b) STUDY AND REPORT ON APPLICATION OF PRI12 VACY AND SECURITY REQUIREMENTS TO NON-HIPAA

13 COVERED ENTITIES.— 

14 (1) STUDY.—Not later than one year after the 

15 date of the enactment of this title, the Secretary, in 

16 consultation with the Federal Trade Commission, 

17 shall conduct a study, and submit a report under 

18 paragraph (2), on privacy and security requirements 

19 for entities that are not covered entities or business 

20 associates as of the date of the enactment of this 

21 title, including— 

22 (A) requirements relating to security, pri23 vacy, and notification in the case of a breach of 

24 security or privacy (including the applicability 

25 of an exemption to notification in the case of 


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1 individually identifiable health information that 

2 has been rendered unusable, unreadable, or in3 decipherable through technologies or methodolo4 gies recognized by appropriate professional or5 ganization or standard setting bodies to provide 

6 effective security for the information) that 

7 should be applied to— 

8 (i) vendors of personal health records; 

9 (ii) entities that offer products or 

10 services through the website of a vendor of 

11 personal health records; 

12 (iii) entities that are not covered enti13 ties and that offer products or services 

14 through the websites of covered entities 

15 that offer individuals personal health 

16 records; 

17 (iv) entities that are not covered enti18 ties and that access information in a per19 sonal health record or send information to 

20 a personal health record; and 

21 (v) third party service providers used 

22 by a vendor or entity described in clause 

23 (i), (ii), (iii), or (iv) to assist in providing 

24 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 

3 such requirements recommended to be applied 

4 to such vendors, entities, and service providers 

5 under subparagraph (A); and 

6 (C) a timeframe for implementing regula7 tions based on such findings. 

8 (2) REPORT.—The Secretary shall submit to 

9 the Committee on Finance, the Committee on 

10 Health, Education, Labor, and Pensions, and the 

11 Committee on Commerce of the Senate and the 

12 Committee on Ways and Means and the Committee 

13 on Energy and Commerce of the House of Rep14 resentatives a report on the findings of the study 

15 under paragraph (1) and shall include in such report 

16 recommendations on the privacy and security re17 quirements described in such 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 

25 Federal Regulations. 


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1 (d) GAO REPORT ON TREATMENT DISCLOSURES.— 

2 Not later than one year after the date of the enactment 

3 of this title, the Comptroller General of the United States 

4 shall submit to the Committee on Health, Education, 

5 Labor, and Pensions of the Senate and the Committee on 

6 Ways and Means and the Committee on Energy and Com7 merce of the House of Representatives a report on the 

8 best practices related to the disclosure among health care 

9 providers of protected health information of an individual 

10 for purposes of treatment of such individual. Such report 

11 shall include an examination of the best practices imple12 mented by States and by other entities, such as health 

13 information exchanges and regional health information or14 ganizations, an examination of the extent to which such 

15 best practices are successful with respect to the quality 

16 of the resulting health care provided to the individual and 

17 with respect to the ability of the health care provider to 

18 manage such best practices, and an examination of the 

19 use of electronic informed consent for disclosing protected 

20 health information for treatment, payment, and health 

21 care operations. 

22 (e) REPORT REQUIRED.—Not later than 1 year after 

23 the date of enactment of this section, the Government Ac24 countability Office shall submit to Congress and the Sec25 retary of Health and Human Services a report on the imVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00370 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 pact of any of the provisions of, or amendments made by, 

2 this division or division B that are related to the Health 

3 Insurance Portability and Accountability Act of 1996 and 

4 section 552a of title 5, United States Code, on health in5 surance premiums and overall health care costs. 

6 TITLE XIV—STATE FISCAL 

7 STABILIZATION 

8 DEPARTMENT OF EDUCATION 

9 STATE FISCAL STABILIZATION FUND

10 For necessary expenses for a State Fiscal Stabiliza11 tion Fund, $39,000,000,000, which shall be administered 

12 by the Department of Education, and shall be available 

13 through September 30, 2010. 

14 GENERAL PROVISIONS—THIS TITLE 

15 SEC. 1401. ALLOCATIONS. 

16 (a) OUTLYING AREAS.—The Secretary of Education 

17 shall first allocate one-half of 1 percent to the outlying 

18 areas on the basis of their respective needs, as determined 

19 by the Secretary, for activities consistent with this title 

20 under such terms and conditions as the Secretary may de21 termine. 

22 (b) ADMINISTRATION AND OVERSIGHT.—The Sec23 retary may reserve up to $25,000,000 for administration 

24 and oversight of this title, including for program evalua25 tion. 


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1 (c) RESERVATION FOR ADDITIONAL PROGRAMS.— 

2 After reserving funds under subsections (a) and (b), the 

3 Secretary shall reserve $7,500,000,000 for grants under 

4 sections 1406 and 1407. 

5 (d) STATE ALLOCATIONS.—After carrying out sub6 sections (a), (b), and (c), the Secretary shall allocate the 

7 remaining funds made available to carry out this title to 

8 the States as follows: 

9 (1) 61 percent on the basis of their relative 

10 population of individuals aged 5 through 24. 

11 (2) 39 percent on the basis of their relative 

12 total population. 

13 (e) STATE GRANTS.—From funds allocated under 

14 subsection (d), the Secretary shall make grants to the 

15 Governor of each State. 

16 (f) REALLOCATION.—The Governor shall return to 

17 the Secretary any funds received under subsection (e) that 

18 the Governor does not obligate within 1 year of receiving 

19 a grant, and the Secretary shall reallocate such funds to 

20 the remaining States in accordance with subsection (d). 

21 SEC. 1402. STATE USES OF FUNDS. 

22 EDUCATION FUND.—(a) IN GENERAL.—The Gov23 ernor shall use the State’s allocation under section 1401 

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1 ondary education and, as applicable, early childhood edu2 cation programs and services. 

3 (b) RESTORING 2008 STATE SUPPORT FOR EDU4 CATION.— 

5 (1) IN GENERAL.—The Governor shall first use the 

6 funds described in subsection (a)— 

7 (A) to provide the amount of funds, 

8 through the State’s principal elementary and 

9 secondary funding formula, that is needed to 

10 restore State support for elementary and sec11 ondary education to the fiscal year 2008 level; 

12 and where applicable, to allow existing State 

13 formula increases for fiscal years 2009, 2010, 

14 and 2011 to be implemented and allow funding 

15 for phasing in State equity and adequacy ad16 justments that were enacted prior to July 1, 

17 2008; and 

18 (B) to provide the amount of funds to pub19 lic institutions of higher education in the State 

20 that is needed to restore State support for post21 secondary education to the fiscal year 2008 

22 level. 

23 (2) SHORTFALL.—If the Governor determines that 

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1 els described in subparagraphs (A) and (B) of paragraph 

2 (1), the Governor shall allocate those funds between those 

3 clauses in proportion to the relative shortfall in State sup4 port for the education sectors described in those clauses. 

5 (c) SUBGRANTS TO IMPROVE BASIC PROGRAMS OPER6 ATED BY LOCAL EDUCATIONAL AGENCIES.—After car7 rying out subsection (b), the Governor shall use any funds 

8 remaining under subsection (a) to provide local edu9 cational agencies in the State with subgrants based on 

10 their relative shares of funding under part A of title I of 

11 the Elementary and Secondary Education Act of 1965 (20 

12 U.S.C. 6311 et seq.) for the most recent year for which 

13 data are available. 

14 SEC. 1403. USES OF FUNDS BY LOCAL EDUCATIONAL AGEN15 CIES. 

16 (1) IN GENERAL.—A local educational agency that 

17 receives funds under this title may use the funds for any 

18 activity authorized by the Elementary and Secondary Edu19 cation Act of 1965 (20 U.S.C. 6301 et seq.) (‘‘ESEA’’), 

20 the Individuals with Disabilities Education Act (20 U.S.C. 

21 1400 et seq.) (‘‘IDEA’’), or the Carl D. Perkins Career 

22 and Technical Education Act of 2006 (20 U.S.C. 2301 

23 et seq.) (‘‘the Perkins Act’’). 


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1 (b) PROHIBITION.—A local educational agency may 

2 not use funds received under this title for capital projects 

3 unless authorized by ESEA, IDEA, or the Perkins Act. 

4 SEC. 1404. USES OF FUNDS BY INSTITUTIONS OF HIGHER 

5 EDUCATION. 

6 (a) IN GENERAL.—A public institution of higher edu7 cation that receives funds under this title shall use the 

8 funds for education and general expenditures, and in such 

9 a way as to mitigate the need to raise tuition and fees 

10 for in-State students. 

11 (b) PROHIBITION.—An institution of higher edu12 cation may not use funds received under this title to in13 crease its endowment. 

14 (c) ADDITIONAL PROHIBITION.—An institution of 

15 higher education may not use funds received under this 

16 title for construction, renovation, or facility repair. 

17 SEC. 1405. STATE APPLICATIONS. 

18 (a) IN GENERAL.—The Governor of a State desiring 

19 to receive an allocation under section 1401 shall submit 

20 an application at such time, in such manner, and con21 taining such information as the Secretary may reasonably 

22 require. 

23 (b) APPLICATION.—The Governor shall— 

24 (1) include the assurances described in sub25 section (d); 


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1 (2) provide baseline data that demonstrates the 

2 State’s current status in each of the areas described 

3 in such assurances; and 

4 (3) describe how the State intends to use its al5 location. 

6 (c) INCENTIVE GRANT APPLICATION.—The Governor 

7 of a State seeking a grant under section 1406 shall— 

8 (1) submit an application for consideration; 

9 (2) describe the status of the State’s progress 

10 in each of the areas described in subsection (d); 

11 (3) describe the achievement and graduation 

12 rates of public elementary and secondary school stu13 dents in the State, and the strategies the State is 

14 employing to help ensure that all subgroups of stu15 dents identified in 1111(b)(2) of ESEA in the State 

16 continue making progress toward meeting the 

17 State’s student academic achievement standards; 

18 (4) describe how the State would use its grant 

19 funding to improve student academic achievement in 

20 the State, including how it will allocate the funds to 

21 give priority to high-need schools and local edu22 cational agencies; and 

23 (5) include a plan for evaluating its progress in 

24 closing achievement gaps. 


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1 (d) ASSURANCES.—An application under subsection 

2 (b) shall include the following assurances: 

3 (1) MAINTENANCE OF EFFORT.— 

4 (A) ELEMENTARY AND SECONDARY EDU5 CATION.—The State will, in each of fiscal years 

6 2009 and 2010, maintain State support for ele7 mentary and secondary education at least at 

8 the level of such support in fiscal year 2006. 

9 (B) HIGHER EDUCATION.—The State will, 

10 in each of fiscal years 2009 and 2010, maintain 

11 State support for public institutions of higher 

12 education (not including support for capital 

13 projects or for research and development) at 

14 least at the level of such support in fiscal year 

15 2006. 

16 (2) ACHIEVING EQUITY IN TEACHER DISTRIBU17 TION.—The State will take action, including activi18 ties outlined in section 2113(c) of ESEA, to increase 

19 the number, and improve the distribution, of effec20 tive teachers and principals in high-poverty schools 

21 and local educational agencies throughout the State. 

22 (3) IMPROVING COLLECTION AND USE OF

23 DATA.—The State will establish a longitudinal data 

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1 tion 6401(e)(2)(D) of the America COMPETES Act 

2 (20 U.S.C. 9871). 

3 (4) STANDARDS AND ASSESSMENTS.—The 

4 State— 

5 (A) will enhance the quality of academic 

6 assessments described in section 1111(b)(3) of 

7 ESEA (20 U.S.C. 6311(b)(3)) through activi8 ties such as those described in section 6112(a) 

9 of such Act (20 U.S.C. 7301a(a)); 

10 (B) will comply with the requirements of 

11 paragraphs (3)(C)(ix) and (6) of section 

12 1111(b) of ESEA (20 U.S.C. 6311(b)) and sec13 tion 612(a)(16) of IDEA (20 U.S.C. 

14 1412(a)(16)) related to the inclusion of children 

15 with disabilities and limited English proficient 

16 students in State assessments, the development 

17 of valid and reliable assessments for those stu18 dents, and the provision of accommodations 

19 that enable their participation in State assess20 ments; and 

21 (C) will take steps to improve State aca22 demic content standards and student academic 

23 achievement standards consistent with 

24 6401(e)(1)(A)(ii) of the America COMPETES 

25 Act. 


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1 (5) will ensure compliance with the require2 ments of section 1116(a)(7)(C)(iv) and section 

3 1116(a)(8)(B) with respect to schools identified 

4 under such sections. 

5 SEC. 1406. STATE INCENTIVE GRANTS. 

6 (a) IN GENERAL.—From the total amount reserved 

7 under section 1401(c) that is not used for section 1407, 

8 the Secretary shall, in fiscal year 2010, make grants to 

9 States that have made significant progress in meeting the 

10 objectives of paragraphs (2), (3), (4), and (5) of section 

11 1405(d). 

12 (b) BASIS FOR GRANTS.—The Secretary shall deter13 mine which States receive grants under this section, and 

14 the amount of those grants, on the basis of information 

15 provided in State applications under section 1405 and 

16 such other criteria as the Secretary determines appro17 priate. 

18 (c) SUBGRANTS TO LOCAL EDUCATIONAL AGEN19 CIES.—Each State receiving a grant under this section 

20 shall use at least 50 percent of the grant to provide local 

21 educational agencies in the State with subgrants based on 

22 their relative shares of funding under part A of title I of 

23 ESEA (20 U.S.C. 6311 et seq.) for the most recent year. 

24 SEC. 1407. INNOVATION FUND. 

25 (a) IN GENERAL.— 


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1 (1) ELIGIBLE ENTITY.—For the purposes of 

2 this section, the term ‘‘eligible entity’’ means— 

3 (A) A local educational agency; or 

4 (B) a partnership between a nonprofit or5 ganization and— 

6 (i) one or more local educational agen7 cies; 

8 (ii) or a consortium of schools. 

9 (2) PROGRAM ESTABLISHED.—From the total 

10 amount reserved under section 1401(c), the Sec11 retary may reserve up to $650,000,000 to establish 

12 an Innovation Fund, which shall consist of academic 

13 achievement awards that recognize eligible entities 

14 that meet the requirements described in subsection 

15 (b). 

16 (3) BASIS FOR AWARDS.—The Secretary shall 

17 make awards to eligible entities that have made sig18 nificant gains in closing the achievement gap as de19 scribed in subsection (b)(1)— 

20 (A) to allow such eligible entities to expand 

21 their work and serve as models for best prac22 tices; 

23 (B) to allow such eligible entities to work 

24 in partnership with the private sector and the 

25 philanthropic community; and 


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1 (C) to identify and document best practices 

2 that can be shared, and taken to scale based on 

3 demonstrated success. 

4 (b) ELIGIBILITY.—To be eligible for such an award, 

5 an eligible entity shall— 

6 (1) have significantly closed the achievement 

7 gaps between groups of students described in section 

8 1111(b)(2) of ESEA (20 U.S.C. 6311(b)(2)); 

9 (2) have exceeded the State’s annual measur10 able objectives consistent with such section 

11 1111(b)(2) for 2 or more consecutive years or have 

12 demonstrated success in significantly increasing stu13 dent academic achievement for all groups of stu14 dents described in such section through another 

15 measure, such as measures described in section 

16 1111(c)(2) of ESEA; 

17 (3) have made significant improvement in other 

18 areas, such as graduation rates or increased recruit19 ment and placement of high-quality teachers and 

20 school leaders, as demonstrated with meaningful 

21 data; and 

22 (4) demonstrate that they have established 

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1 vate sector will provide matching funds in order to 

2 help bring results to scale. 

3 SEC. 1408. STATE REPORTS. 

4 A State receiving funds under this title shall submit 

5 a report to the Secretary, at such time and in such manner 

6 as the Secretary may require, that describes— 

7 (1) the uses of funds provided under this title 

8 within the State; 

9 (2) how the State distributed the funds it re10 ceived under this title; 

11 (3) the number of jobs that the Governor esti12 mates were saved or created with funds the State re13 ceived under this title; 

14 (4) tax increases that the Governor estimates 

15 were averted because of the availability of funds 

16 from this title; 

17 (5) the State’s progress in reducing inequities 

18 in the distribution of teachers, in implementing a 

19 State student longitudinal data system, and in devel20 oping and implementing valid and reliable assess21 ments for limited English proficient students and 

22 children with disabilities; 

23 (6) the tuition and fee increases for in-State 

24 students imposed by public institutions of higher 

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1 ability of funds under this title, and a description of 

2 any actions taken by the State to limit those in3 creases; and 

4 (7) the extent to which public institutions of 

5 higher education maintained, increased, or decreased 

6 enrollment of in-State students, including students 

7 eligible for Pell Grants or other need-based financial 

8 assistance. 

9 SEC. 1409. EVALUATION. 

10 The Comptroller General of the United States shall 

11 conduct evaluations of the programs under sections 1406 

12 and 1407 which shall include, but not be limited to, the 

13 criteria used for the awards made, the States selected for 

14 awards, award amounts, how each State used the award 

15 received, and the impact of this funding on the progress 

16 made toward closing achievement gaps. 

17 SEC. 1410. SECRETARY’S REPORT TO CONGRESS. 

18 The Secretary shall submit a report to the Committee 

19 on Education and Labor of the House of Representatives, 

20 the Committee on Health, Education, Labor, and Pen21 sions of the Senate, and the Committees on Appropria22 tions of the House of Representatives and of the Senate, 

23 not less than 6 months following the submission of the 

24 State reports, that evaluates the information provided in 

25 the State reports under section 1408. 


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1 SEC. 1411. 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, unless such funds 

6 are used to provide special education and related services 

7 to children with disabilities, as authorized by the Individ8 uals with Disabilities Education Act (20 U.S.C. 1400 et 

9 seq.). 

10 SEC. 1412. DEFINITIONS. 

11 Except as otherwise provided in this title, as used in 

12 this title— 

13 (1) the term ‘‘institution of higher education’’ 

14 has the meaning given such term in section 101 of 

15 the Higher Education Act of 1965 (20 U.S.C. 

16 1001); 

17 (2) the term ‘‘Secretary’’ means the Secretary 

18 of Education; 

19 (3) the term ‘‘State’’ means each of the 50 

20 States, the District of Columbia, and the Common21 wealth of Puerto Rico; and 

22 (4) any other term that is defined in section 

23 9101 of ESEA (20 U.S.C. 7801) shall have the 

24 meaning given the term in such section. 


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1 SEC. 1413. REGULATORY RELIEF. 

2 (a) WAIVER AUTHORITY.—Subject to subsections (b) 

3 and (c), the Secretary of Education may, as applicable, 

4 waive or modify, in order to ease fiscal burdens, any re5 quirement relating to the following: 

6 (1) Maintenance of effort. 

7 (2) The use of Federal funds to supplement, 

8 not supplant, non-Federal funds. 

9 (b) DURATION.—A waiver under this section shall be 

10 for fiscal years 2009 and 2010. 

11 (c) LIMITATIONS.— 

12 (1) RELATION TO IDEA.—Nothing in this sec13 tion shall be construed to permit the Secretary to 

14 waive or modify any provision of the Individuals 

15 with Disabilities Education Act (20 U.S.C. 1400 et 

16 seq.), except as described in a(1) and a(2). 

17 (2) MAINTENANCE OF EFFORT.—If the Sec18 retary grants a waiver or modification under this 

19 section waiving or modifying a requirement relating 

20 to maintenance of effort for fiscal years 2009 and 

21 2010, the level of effort required for fiscal year 2011 

22 shall not be reduced because of the waiver or modi23 fication. 


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1 TITLE XV—RECOVERY ACCOUNT2 ABILITY AND TRANSPARENCY 

3 BOARD AND RECOVERY INDE4 PENDENT ADVISORY PANEL 

5 SEC. 1501. DEFINITIONS. 

6 In this title: 

7 (1) AGENCY.—The term ‘‘agency’’ has the 

8 meaning given under section 551 of title 5, United 

9 States Code. 

10 (2) BOARD.—The term ‘‘Board’’ means the Re11 covery Accountability and Transparency Board es12 tablished in section 1511. 

13 (3) CHAIRPERSON.—The term ‘‘Chairperson’’ 

14 means the Chairperson of the Board. 

15 (4) COVERED FUNDS.—The term ‘‘covered 

16 funds’’ means any funds that are expended or obli17 gated— 

18 (A) from appropriations made under this 

19 Act; and 

20 (B) under any other authorities provided 

21 under this Act. 

22 (5) PANEL.—The term ‘‘Panel’’ means the Re23 covery Independent Advisory Panel established in 

24 section 1531. 


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1 Subtitle A—Recovery Account2 ability and Transparency Board 

3 SEC. 1511. ESTABLISHMENT OF THE RECOVERY ACCOUNT4 ABILITY AND TRANSPARENCY BOARD. 

5 There is established the Recovery Accountability and 

6 Transparency Board to coordinate and conduct oversight 

7 of covered funds to prevent fraud, waste, and abuse. 

8 SEC. 1512. COMPOSITION OF BOARD. 

9 (a) CHAIRPERSON.— 

10 (1) DESIGNATION OR APPOINTMENT.—The 

11 President shall— 

12 (A) designate the Deputy Director for 

13 Management of the Office of Management and 

14 Budget to serve as Chairperson of the Board; 

15 (B) designate another Federal officer who 

16 was appointed by the President to a position 

17 that required the advice and consent of the 

18 Senate, to serve as Chairperson of the Board; 

19 or 

20 (C) appoint an individual as the Chair21 person of the Board, by and with the advice 

22 and consent of the Senate. 

23 (2) COMPENSATION.— 

24 (A) DESIGNATION OF FEDERAL OFFI25 CER.—If the President designates a Federal ofVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00387 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ficer under paragraph (1)(A) or (B) to serve as 

2 Chairperson, that Federal officer may not re3 ceive additional compensation for services per4 formed as Chairperson. 

5 (B) APPOINTMENT OF NON-FEDERAL OF6 FICER.—If the President appoints an individual 

7 as Chairperson under paragraph (1)(C), that 

8 individual shall be compensated at the rate of 

9 basic pay prescribed for level IV of the Execu10 tive Schedule under section 5315 of title 5, 

11 United States Code. 

12 (b) MEMBERS.—The members of the Board shall in13 clude— 

14 (1) the Inspectors General of the Departments 

15 of Agriculture, Commerce, Education, Energy, 

16 Health and Human Services, Homeland Security, 

17 Justice, Transportation, Treasury, and the Treasury 

18 Inspector General for Tax Administration; and 

19 (2) any other Inspector General as designated 

20 by the President from any agency that expends or 

21 obligates covered funds. 

22 SEC. 1513. FUNCTIONS OF THE BOARD. 

23 (a) FUNCTIONS.— 


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1 (1) IN GENERAL.—The Board shall coordinate 

2 and conduct oversight of covered funds in order to 

3 prevent fraud, waste, and abuse. 

4 (2) SPECIFIC FUNCTIONS.—The functions of 

5 the Board shall include— 

6 (A) reviewing whether the reporting of con7 tracts and grants using covered funds meets ap8 plicable standards and specifies the purpose of 

9 the contract or grant and measures of perform10 ance; 

11 (B) reviewing whether competition require12 ments applicable to contracts and grants using 

13 covered funds have been satisfied; 

14 (C) auditing and investigating covered 

15 funds to determine whether wasteful spending, 

16 poor contract or grant management, or other 

17 abuses are occurring; 

18 (D) reviewing whether there are sufficient 

19 qualified acquisition and grant personnel over20 seeing covered funds; 

21 (E) reviewing whether personnel whose du22 ties involve acquisitions or grants made with 

23 covered funds receive adequate training; and 


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1 (F) reviewing whether there are appro2 priate mechanisms for interagency collaboration 

3 relating to covered funds. 

4 (b) REPORTS.— 

5 (1) QUARTERLY REPORTS.—The Board shall 

6 submit quarterly reports to the President and Con7 gress, including the Committees on Appropriations 

8 of the Senate and House of Representatives, summa9 rizing the findings of the Board and the findings of 

10 inspectors general of agencies. The Board may sub11 mit additional reports as appropriate. 

12 (2) ANNUAL REPORTS.—The Board shall sub13 mit annual reports to the President and the Com14 mittees on Appropriations of the Senate and House 

15 of Representatives, consolidating applicable quarterly 

16 reports on the use of covered funds. 

17 (3) PUBLIC AVAILABILITY.— 

18 (A) IN GENERAL.—All reports submitted 

19 under this subsection shall be made publicly 

20 available and posted on a website established by 

21 the Board. 

22 (B) REDACTIONS.—Any portion of a re23 port submitted under this subsection may be re24 dacted when made publicly available, if that 

25 portion would disclose information that is not 


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1 subject to disclosure under section 552 of title 

2 5, United States Code (commonly known as the 

3 Freedom of Information Act). 

4 (c) RECOMMENDATIONS.— 

5 (1) IN GENERAL.—The Board shall make rec6 ommendations to agencies on measures to prevent 

7 fraud, waste, and abuse relating to covered funds. 

8 (2) RESPONSIVE REPORTS.—Not later than 30 

9 days after receipt of a recommendation under para10 graph (1), an agency shall submit a report to the 

11 President, the congressional committees of jurisdic12 tion, including the Committees on Appropriations of 

13 the Senate and House of Representatives, and the 

14 Board on— 

15 (A) whether the agency agrees or disagrees 

16 with the recommendations; and 

17 (B) any actions the agency will take to im18 plement the recommendations. 

19 SEC. 1514. POWERS OF THE BOARD. 

20 (a) IN GENERAL.—The Board shall conduct, super21 vise, and coordinate audits and investigations by inspec22 tors general of agencies relating to covered funds. 

23 (b) AUDITS AND INVESTIGATIONS.—The Board 

24 may— 


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1 (1) conduct its own independent audits and in2 vestigations relating to covered funds; and 

3 (2) collaborate on audits and investigations re4 lating to covered funds with any inspector general of 

5 an agency. 

6 (c) AUTHORITIES.— 

7 (1) AUDITS AND INVESTIGATIONS.—In con8 ducting audits and investigations, the Board shall 

9 have the authorities provided under section 6 of the 

10 Inspector General Act of 1978 (5 U.S.C. App.). 

11 (2) STANDARDS AND GUIDELINES.—The Board 

12 shall carry out the powers under subsections (a) and 

13 (b) in accordance with section 4(b)(1) of the Inspec14 tor General Act of 1978 (5 U.S.C. App.). 

15 (d) PUBLIC HEARINGS.—The Board may hold public 

16 hearings and Board personnel may conduct investigative 

17 depositions. The head of each agency shall make all offi18 cers and employees of that agency available to provide tes19 timony to the Board and Board personnel. The Board may 

20 issue subpoenas to compel the testimony of persons who 

21 are not Federal officers or employees. Any such subpoenas 

22 may be enforced as provided under section 6 of the Inspec23 tor General Act of 1978 (5 U.S.C. App.). 

24 (e) CONTRACTS.—The Board may enter into con25 tracts to enable the Board to discharge its duties under 


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1 this subtitle, including contracts and other arrangements 

2 for audits, studies, analyses, and other services with public 

3 agencies and with private persons, and make such pay4 ments as may be necessary to carry out the duties of the 

5 Board. 

6 (f) TRANSFER OF FUNDS.—The Board may transfer 

7 funds appropriated to the Board for expenses to support 

8 administrative support services and audits or investiga9 tions of covered funds to any office of inspector general, 

10 the Office of Management and Budget, the General Serv11 ices Administration, and the Panel. 

12 SEC. 1515. EMPLOYMENT, PERSONNEL, AND RELATED AU13 THORITIES. 

14 (a) EMPLOYMENT AND PERSONNEL AUTHORITIES.— 

15 (1) IN GENERAL.— 

16 (A) AUTHORITIES.—Subject to paragraph 

17 (2), the Board may exercise the authorities of 

18 subsections (b) through (i) of section 3161 of 

19 title 5, United States Code (without regard to 

20 subsection (a) of that section). 

21 (B) APPLICATION.—For purposes of exer22 cising the authorities described under subpara23 graph (A), the term ‘‘Chairperson of the 

24 Board’’ shall be substituted for the term ‘‘head 

25 of a temporary organization’’. 


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1 (C) CONSULTATION.—In exercising the au2 thorities described under subparagraph (A), the 

3 Chairperson shall consult with members of the 

4 Board. 

5 (2) EMPLOYMENT AUTHORITIES.—In exercising 

6 the employment authorities under subsection (b) of 

7 section 3161 of title 5, United States Code, as pro8 vided under paragraph (1) of this subsection— 

9 (A) paragraph (2) of subsection (b) of sec10 tion 3161 of that title (relating to periods of 

11 appointments) shall not apply; and 

12 (B) no period of appointment may exceed 

13 the date on which the Board terminates under 

14 section 1521. 

15 (b) INFORMATION AND ASSISTANCE.— 

16 (1) IN GENERAL.—Upon request of the Board 

17 for information or assistance from any agency or 

18 other entity of the Federal Government, the head of 

19 such entity shall, insofar as is practicable and not in 

20 contravention of any existing law, furnish such infor21 mation or assistance to the Board, or an authorized 

22 designee. 

23 (2) REPORT OF REFUSALS.—Whenever infor24 mation or assistance requested by the Board is, in 

25 the judgment of the Board, unreasonably refused or 


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1 not provided, the Board shall report the cir2 cumstances to the congressional committees of juris3 diction, including the Committees on Appropriations 

4 of the Senate and House of Representatives, without 

5 delay. 

6 (c) ADMINISTRATIVE SUPPORT.—The General Serv7 ices Administration shall provide the Board with adminis8 trative support services, including the provision of office 

9 space and facilities. 

10 SEC. 1516. INDEPENDENCE OF INSPECTORS GENERAL. 

11 (a) INDEPENDENT AUTHORITY.—Nothing in this 

12 subtitle shall affect the independent authority of an in13 spector general to determine whether to conduct an audit 

14 or investigation of covered funds. 

15 (b) REQUESTS BY BOARD.—If the Board requests 

16 that an inspector general conduct or refrain from con17 ducting an audit or investigation and the inspector general 

18 rejects the request in whole or in part, the inspector gen19 eral shall, not later than 30 days after rejecting the re20 quest, submit a report to the Board, the head of the appli21 cable agency, and the congressional committees of juris22 diction, including the Committees on Appropriations of the 

23 Senate and House of Representatives. The report shall 

24 state the reasons that the inspector general has rejected 

25 the request in whole or in part. 


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1 SEC. 1517. COORDINATION WITH THE COMPTROLLER GEN2 ERAL AND STATE AUDITORS. 

3 The Board shall coordinate its oversight activities 

4 with the Comptroller General of the United States and 

5 State auditor generals. 

6 SEC. 1518. PROTECTING STATE AND LOCAL GOVERNMENT 

7 AND CONTRACTOR WHISTLEBLOWERS. 

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

9 any non-Federal employer receiving covered funds may not 

10 be discharged, demoted, or otherwise discriminated 

11 against as a reprisal for disclosing to the Board, an in12 spector general, the Comptroller General, a member of 

13 Congress, or a the head of a Federal agency, or their rep14 resentatives, information that the employee reasonably be15 lieves is evidence of— 

16 (1) gross mismanagement of an agency contract 

17 or grant relating to covered funds; 

18 (2) a gross waste of covered funds; 

19 (3) a substantial and specific danger to public 

20 health or safety; or 

21 (4) a violation of law related to an agency con22 tract (including the competition for or negotiation of 

23 a contract) or grant, awarded or issued relating to 

24 covered funds. 

25 (b) INVESTIGATION OF COMPLAINTS.— 


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1 (1) IN GENERAL.—A person who believes that 

2 the person has been subjected to a reprisal prohib3 ited by subsection (a) may submit a complaint to the 

4 appropriate inspector general. Unless the inspector 

5 general determines that the complaint is frivolous, 

6 the inspector general shall investigate the complaint 

7 and, upon completion of such investigation, submit 

8 a report of the findings of the investigation to the 

9 person, the person’s employer, the head of the ap10 propriate agency, and the Board. 

11 (2) TIME LIMITATIONS FOR ACTIONS.— 

12 (A) IN GENERAL.—Except as provided 

13 under subparagraph (B), the inspector general 

14 shall make a determination that a complaint is 

15 frivolous or submit a report under paragraph 

16 (1) within 180 days after receiving the com17 plaint. 

18 (B) EXTENSION.—If the inspector general 

19 is unable to complete an investigation in time to 

20 submit a report within the 180-day period spec21 ified under subparagraph (A) and the person 

22 submitting the complaint agrees to an extension 

23 of time, the inspector general shall submit a re24 port under paragraph (1) within such additional 

25 period of time as shall be agreed upon between 


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1 the inspector general and the person submitting 

2 the complaint. 

3 (c) REMEDY AND ENFORCEMENT AUTHORITY.— 

4 (1) AGENCY ACTION.—Not later than 30 days 

5 after receiving an inspector general report under 

6 subsection (b), the head of the agency concerned 

7 shall determine whether there is sufficient basis to 

8 conclude that the non-Federal employer has sub9 jected the complainant to a reprisal prohibited by 

10 subsection (a) and shall either issue an order deny11 ing relief or shall take 1 or more of the following ac12 tions: 

13 (A) Order the employer to take affirmative 

14 action to abate the reprisal. 

15 (B) Order the employer to reinstate the 

16 person to the position that the person held be17 fore the reprisal, together with the compensa18 tion (including back pay), employment benefits, 

19 and other terms and conditions of employment 

20 that would apply to the person in that position 

21 if the reprisal had not been taken. 

22 (C) Order the employer to pay the com23 plainant an amount equal to the aggregate 

24 amount of all costs and expenses (including at25 torneys’ fees and expert witnesses’ fees) that 


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1 were reasonably incurred by the complainant 

2 for, or in connection with, bringing the com3 plaint regarding the reprisal, as determined by 

4 the head of the agency. 

5 (2) CIVIL ACTION.—If the head of an agency 

6 issues an order denying relief under paragraph (1) 

7 or has not issued an order within 210 days after the 

8 submission of a complaint under subsection (b), or 

9 in the case of an extension of time under subsection 

10 (b)(2)(B), not later than 30 days after the expira11 tion of the extension of time, and there is no show12 ing that such delay is due to the bad faith of the 

13 complainant, the complainant shall be deemed to 

14 have exhausted all administrative remedies with re15 spect to the complaint, and the complainant may 

16 bring a de novo action at law or equity against the 

17 employer to seek compensatory damages and other 

18 relief available under this section in the appropriate 

19 district court of the United States, which shall have 

20 jurisdiction over such an action without regard to 

21 the amount in controversy. Such an action shall, at 

22 the request of either party to the action, be tried by 

23 the court with a jury. 

24 (3) EVIDENCE.—An inspector general deter25 mination and an agency head order denying relief 


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1 under paragraph (2) shall be admissible in evidence 

2 in any de novo action at law or equity brought in ac3 cordance with this subsection. 

4 (4) JUDICIAL ENFORCEMENT OF ORDER.— 

5 Whenever a person fails to comply with an order 

6 issued under paragraph (1), the head of the agency 

7 shall file an action for enforcement of such order in 

8 the United States district court for a district in 

9 which the reprisal was found to have occurred. In 

10 any action brought under this paragraph, the court 

11 may grant appropriate relief, including injunctive re12 lief and compensatory and exemplary damages. 

13 (5) JUDICIAL REVIEW.—Any person adversely 

14 affected 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 

20 seeking such review may be filed more than 60 days 

21 after issuance of the order by the head of the agen22 cy. Review shall conform to chapter 7 of title 5, 

23 United States Code. 

24 (d) RULE OF CONSTRUCTION.—Nothing in this sec25 tion may be construed to authorize the discharge of, demoVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00400 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 tion of, or discrimination against an employee for a disclo2 sure other than a disclosure protected by subsection (a) 

3 or to modify or derogate from a right or remedy otherwise 

4 available 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 Ac24 countability Office. 


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1 (3) The website shall provide data on relevant 

2 economic, financial, grant, and contract information 

3 in user-friendly visual presentations to enhance pub4 lic awareness of the use 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 

9 of solicitations for contracts to be awarded, and in10 formation about the process that was used for the 

11 award of contracts. 

12 (5) The website shall include printable reports 

13 on covered funds obligated by month to each State 

14 and 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 sub20 title. 

21 (d) WAIVER.—The Board may exclude posting con22 tractual or other information on the website on a case23 by-case basis when necessary to protect national security. 


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1 SEC. 1520. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated such sums 

3 as necessary to carry out this subtitle. 

4 SEC. 1521. TERMINATION OF THE BOARD. 

5 The Board shall terminate on September 30, 2012. 

6 Subtitle B—Recovery Independent 

7 Advisory Panel 

8 SEC. 1531. ESTABLISHMENT OF RECOVERY INDEPENDENT 

9 ADVISORY PANEL. 

10 (a) ESTABLISHMENT.—There is established the Re11 covery Independent Advisory Panel. 

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

13 5 members who shall be appointed by the President. 

14 (c) QUALIFICATIONS.—Members shall be appointed 

15 on the basis of expertise in economics, public finance, con16 tracting, accounting, or any other relevant field. 

17 (d) INITIAL MEETING.—Not later than 30 days after 

18 the date on which all members of the Panel have been 

19 appointed, the Panel shall hold its first meeting. 

20 (e) MEETINGS.—The Panel shall meet at the call of 

21 the Chairperson of the Panel. 

22 (f) QUORUM.—A majority of the members of the 

23 Panel shall constitute a quorum, but a lesser number of 

24 members may hold hearings. 


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1 (g) CHAIRPERSON AND VICE CHAIRPERSON.—The 

2 Panel shall select a Chairperson and Vice Chairperson 

3 from among its members. 

4 SEC. 1532. DUTIES OF THE PANEL. 

5 The Panel shall make recommendations to the Board 

6 on actions the Board could take to prevent fraud, waste, 

7 and abuse relating to covered funds. 

8 SEC. 1533. POWERS OF THE PANEL. 

9 (a) HEARINGS.—The Panel may hold such hearings, 

10 sit and act at such times and places, take such testimony, 

11 and receive such evidence as the Panel considers advisable 

12 to carry out this subtitle. 

13 (b) INFORMATION FROM FEDERAL AGENCIES.—The 

14 Panel may secure directly from any agency such informa15 tion as the Panel considers necessary to carry out this sub16 title. Upon request of the Chairperson of the Panel, the 

17 head of such agency shall furnish such information to the 

18 Panel. 

19 (c) POSTAL SERVICES.—The Panel may use the 

20 United States mails in the same manner and under the 

21 same conditions as agencies of the Federal Government. 

22 (d) GIFTS.—The Panel may accept, use, and dispose 

23 of gifts or donations of services or property. 


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1 SEC. 1534. PANEL PERSONNEL MATTERS. 

2 (a) COMPENSATION OF MEMBERS.—Each member of 

3 the Panel who is not an officer or employee of the Federal 

4 Government shall be compensated at a rate equal to the 

5 daily equivalent of the annual rate of basic pay prescribed 

6 for level IV of the Executive Schedule under section 5315 

7 of title 5, United States Code, for each day (including 

8 travel time) during which such member is engaged in the 

9 performance of the duties of the Panel. All members of 

10 the Panel who are officers or employees of the United 

11 States shall serve without compensation in addition to that 

12 received for their services as officers or employees of the 

13 United States. 

14 (b) TRAVEL EXPENSES.—The members of the Panel 

15 shall be allowed travel expenses, including per diem in lieu 

16 of subsistence, at rates authorized for employees of agen17 cies under subchapter I of chapter 57 of title 5, United 

18 States Code, while away from their homes or regular 

19 places of business in the performance of services for the 

20 Panel. 

21 (c) STAFF.— 

22 (1) IN GENERAL.—The Chairperson of the 

23 Panel may, without regard to the civil service laws 

24 and regulations, appoint and terminate an executive 

25 director and such other additional personnel as may 

26 be necessary to enable the Panel to perform its duVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00405 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ties. The employment of an executive director shall 

2 be subject to confirmation by the Panel. 

3 (2) COMPENSATION.—The Chairperson of the 

4 Panel may fix the compensation of the executive di5 rector and other personnel without regard to chapter 

6 51 and subchapter III of chapter 53 of title 5, 

7 United States Code, relating to classification of posi8 tions and General Schedule pay rates, except that 

9 the rate of pay for the executive director and other 

10 personnel may not exceed the rate payable for level 

11 V of the Executive Schedule under section 5316 of 

12 such title. 

13 (3) PERSONNEL AS FEDERAL EMPLOYEES.— 

14 (A) IN GENERAL.—The executive director 

15 and any personnel of the Panel who are employ16 ees shall be employees under section 2105 of 

17 title 5, United States Code, for purposes of 

18 chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, 

19 and 90 of that title. 

20 (B) MEMBERS OF PANEL.—Subparagraph 

21 (A) shall not be construed to apply to members 

22 of the Panel. 

23 (d) DETAIL OF GOVERNMENT EMPLOYEES.—Any 

24 Federal Government employee may be detailed to the 

25 Panel without reimbursement, and such detail shall be 


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1 without interruption or loss of civil service status or privi2 lege. 

3 (e) PROCUREMENT OF TEMPORARY AND INTERMIT4 TENT SERVICES.—The Chairperson of the Panel may pro5 cure temporary and intermittent services under section 

6 3109(b) of title 5, United States Code, at rates for individ7 uals which do not exceed the daily equivalent of the annual 

8 rate of basic pay prescribed for level V of the Executive 

9 Schedule under section 5316 of such title. 

10 (f) ADMINISTRATIVE SUPPORT.—The General Serv11 ices Administration shall provide the Board with adminis12 trative support services, including the provision of office 

13 space and facilities. 

14 SEC. 1535. TERMINATION OF THE PANEL. 

15 The Panel shall terminate on September 30, 2012. 

16 SEC. 1536. AUTHORIZATION OF APPROPRIATIONS. 

17 There are authorized to be appropriated such sums 

18 as necessary to carry out this subtitle. 

19 Subtitle C—Reports of the Council 

20 of Economic Advisers 

21 SEC. 1541. REPORTS OF THE COUNCIL OF ECONOMIC AD22 VISERS. 

23 (a) IN GENERAL.—In consultation with the Director 

24 of the Office of Management and Budget and the Sec25 retary of the Treasury, the Chairperson of the Council of 


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1 Economic Advisers shall submit to the Committees on Ap2 propriations of the Senate and House of Representatives 

3 quarterly reports based on the reports required under sec4 tion 1551 that detail the impact of programs funded 

5 through covered funds on employment, estimated eco6 nomic growth, and other key economic indicators. 

7 (b) SUBMISSION OF REPORTS.— 

8 (1) FIRST REPORT.—The first report submitted 

9 under subsection (a) shall be submitted not later 

10 than 45 days after the end of the first full quarter 

11 following the date of enactment of this Act. 

12 (2) LAST REPORT.—The last report required to 

13 be submitted under subsection (a) shall apply to the 

14 quarter in which the Board terminates under section 

15 1521. 

16 Subtitle D—Reports on Use of 

17 Funds 

18 SEC. 1551. REPORTS ON USE OF FUNDS. 

19 (a) SHORT TITLE.—This section may be cited as the 

20 ‘‘Jobs Accountability Act’’. 

21 (b) DEFINITIONS.—In this section: 

22 (1) AGENCY.—The term ‘‘agency’’ has the 

23 meaning given under section 551 of title 5, United 

24 States Code. 

25 (2) RECIPIENT.—The term ‘‘recipient’’— 


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1 (A) means any entity that receives recovery 

2 funds (including recovery funds received 

3 through grant, loan, or contract) other than an 

4 individual; and 

5 (B) includes a State that receives recovery 

6 funds. 

7 (3) RECOVERY FUNDS.—The term ‘‘recovery 

8 funds’’ means any funds that are made available— 

9 (A) from appropriations made under this 

10 Act; and 

11 (B) under any other authorities provided 

12 under this Act. 

13 (c) RECIPIENT REPORTS.—Not later than 10 days 

14 after the end of each calendar quarter, each recipient that 

15 received recovery funds from an agency shall submit a re16 port to that agency that contains— 

17 (1) the total amount of recovery funds received 

18 from that agency; 

19 (2) the amount of recovery funds received that 

20 were expended or obligated to projects or activities; 

21 and 

22 (3) a detailed list of all projects or activities for 

23 which recovery funds were expended or obligated, in24 cluding— 

25 (A) the name of the project or activity; 


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1 (B) a description of the project or activity; 

2 (C) an evaluation of the completion status 

3 of the project or activity; and 

4 (D) an analysis of the number of jobs cre5 ated and the number of jobs retained by the 

6 project or activity. 

7 (d) AGENCY REPORTS.—Not later than 30 days after 

8 the end of each calendar quarter, each agency that made 

9 recovery funds available to any recipient shall make the 

10 information in reports submitted under subsection (c) 

11 publicly available by posting the information on a website. 

12 (e) OTHER REPORTS.—The Congressional Budget 

13 Office and the Government Accountability Office shall 

14 comment on the information described in subsection 

15 (c)(3)(D) for any reports submitted under subsection (c). 

16 Such comments shall be due within 7 days after such re17 ports are submitted. 

18 TITLE XVI—GENERAL PROVISIONS—THIS ACT 

19 EMERGENCY DESIGNATION

20 SEC. 1601. Each amount in this Act is designated 

21 as an emergency requirement and necessary to meet emer22 gency needs pursuant to section 204(a) of S. Con. Res. 

23 21 (110th Congress) and section 301(b)(2) of S. Con. Res. 

24 70 (110th Congress), the concurrent resolutions on the 

25 budget for fiscal years 2008 and 2009. 


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1 AVAILABILITY

2 SEC. 1602. No part of any appropriation contained 

3 in this Act shall remain available for obligation beyond 

4 the current fiscal year unless expressly so provided herein. 

5 RELATIONSHIP TO OTHER APPROPRIATIONS

6 SEC. 1603. Each amount appropriated or made avail7 able in this Act is in addition to amounts otherwise appro8 priated for the fiscal year involved. Enactment of this Act 

9 shall have no effect on the availability of amounts under 

10 the Continuing Appropriations Resolution, 2009 (division 

11 A of Public Law 110–329). 

12 BUY AMERICAN

13 SEC. 1604. USE OF AMERICAN IRON, STEEL, AND

14 MANUFACTURED GOODS. (a) None of the funds appro15 priated or otherwise made available by this Act may be 

16 used for a project for the construction, alteration, mainte17 nance, or repair of a public building or public work unless 

18 all of the iron, steel, and manufactured goods used in the 

19 project are produced in the United States. 

20 (b) Subsection (a) shall not apply in any case in 

21 which the head of the Federal department or agency in22 volved finds that— 

23 (1) applying subsection (a) would be incon24 sistent with the public interest; 


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1 (2) iron, steel, and the relevant manufactured 

2 goods are not produced in the United States if suffi3 cient and reasonably available quantities and of a 

4 satisfactory quality; or 

5 (3) inclusion of iron, steel, and manufactured 

6 goods produced in the United States will increase 

7 the cost of the overall project by more than 25 per8 cent. 

9 (c) If the head of a Federal department or agency 

10 determines that it is necessary to waive the application 

11 of subsection (a) based on a finding under subsection (b), 

12 the head of the department or agency shall publish in the 

13 Federal Register a detailed written jurisdiction as to why 

14 the provision is being waived. 

15 (d) This section shall be applied in a manner con16 sistent with United States obligations under international 

17 agreements. 

18 CERTIFICATION

19 SEC. 1605. With respect to funds in titles I though 

20 XVI of this Act made available to State, or local govern21 ment agencies, the Governor, mayor, or other chief execu22 tive, as appropriate, shall certify that the infrastructure 

23 investment has received the full review and vetting re24 quired by law and that the chief executive accepts respon25 sibility that the infrastructure investment is an approVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00412 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 priate use of taxpayer dollars. A State or local agency may 

2 not receive infrastructure investment funding from funds 

3 made available in this Act unless this certification is made. 

4 ECONOMIC STABILIZATION CONTRACTING

5 SEC. 1606. REFORM OF CONTRACTING PROCEDURES

6 UNDER EESA. Section 107(b) of the Emergency Eco7 nomic Stabilization Act of 2008 (12 U.S.C. 5217(b)) is 

8 amended by inserting ‘‘and individuals with disabilities 

9 and businesses owned by individuals with disabilities (for 

10 purposes of this subsection the term ‘individual with dis11 ability’ has the same meaning as the term ‘handicapped 

12 individual’ as that term is defined in section 3(f) of the 

13 Small Business Act (15 U.S.C. 632(f)),’’ after ‘‘(12 

14 U.S.C. 1441a(r)(4)),’’. 

15 SEC. 1607. FINDINGS.— 

16 (1) The National Environmental Policy Act pro17 tects public health, safety and environmental quality: 

18 by ensuring transparency, accountability and public 

19 involvement in federal actions and in the use of pub20 lic funds; 

21 (2) When President Nixon signed the National 

22 Environmental Policy Act into law on January 1, 

23 1970, he said that the Act provided the ‘‘direction’’ 

24 for the country to ‘‘regain a productive harmony be25 tween man and nature’’; 


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1 (3) The National Environmental Policy Act 

2 helps to provide an orderly process for considering 

3 federal actions and funding decisions and prevents 

4 ligation and delay that would otherwise be inevitable 

5 and existed prior to the establishment of the Na6 tional Environmental Policy Act. 

7 (a) Adequate resources within this bill must be de8 voted to ensuring that applicable environmental reviews 

9 under the National Environmental Policy Act are com10 pleted on an expeditious basis and that the shortest exist11 ing applicable process under the National Environmental 

12 Policy Act shall be utilized. 

13 (b) The President shall report to the Senate Environ14 ment and Public Works Committee and the House Nat15 ural Resources Committee every 90 days following the 

16 date of enactment until September 30, 2011 on the status 

17 and progress of projects and activities funded by this Act 

18 with respect to compliance with National Environmental 

19 Policy Act requirements and documentation. 

20 PROHIBITION ON NO-BID CONTRACTS AND EARMARKS

21 SEC. 1608. (a) Notwithstanding any other provision 

22 of this Act, none of the funds appropriated or otherwise 

23 made available by this Act may be used to make any pay24 ment in connection with a contract unless the contract is 

25 awarded using competitive procedures in accordance with 

26 the requirements of section 303 of the Federal Property 


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1 and Administrative Services Act of 1949 (41 U.S.C. 253), 

2 section 2304 of title 10, United States Code, and the Fed3 eral Acquisition Regulation. 

4 (b) Notwithstanding any other provision of this Act, 

5 none of the funds appropriated or otherwise made avail6 able by this Act may be awarded by grant or cooperative 

7 agreement unless the process used to award such grant 

8 or cooperative agreement uses competitive procedures to 

9 select the grantee or award recipient. 

10 SEC. 1609. LIMIT ON FUNDS. 

11 None of the amounts appropriated or otherwise made 

12 available by this Act may be used for any casino or other 

13 gambling establishment, aquarium, zoo, golf course, swim14 ming pool, stadium, community park, museum, theater, 

15 art center, and highway beautification project. 

16 SEC. 1610. HIRING AMERICAN WORKERS IN COMPANIES

17 RECEIVING TARP FUNDING. 

18 (a) SHORT TITLE.—This section may be cited as the 

19 ‘‘Employ American Workers Act’’. 

20 (b) PROHIBITION.— 

21 (1) IN GENERAL.—Notwithstanding any other 

22 provision of law, it shall be unlawful for any recipi23 ent of funding under title I of the Emergency Eco24 nomic Stabilization Act of 2008 (Public Law 110– 

25 343) or section 13 of the Federal Reserve Act (12 


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1 U.S.C. 342 et seq.) to hire any nonimmigrant de2 scribed in section 101(a)(15)(h)(i)(b) of the Immi3 gration and Nationality Act (8 U.S.C. 

4 1101(a)(15)(h)(i)(b)) unless the recipient is in com5 pliance with the requirements for an H–1B depend6 ent employer (as defined in section 212(n)(3) of 

7 such Act (8 U.S.C. 1182(n)(3))), except that the 

8 second sentence of section 212(n)(1)(E)(ii) of such 

9 Act shall not apply. 

10 (2) DEFINED TERM.—In this subsection, the 

11 term ‘‘hire’’ means to permit a new employee to 

12 commence a period of employment. 

13 (c) SUNSET PROVISION.—This section shall be effec14 tive during the 2-year period beginning on the date of the 

15 enactment of this Act. 

16 DIVISION B—TAX, UNEMPLOY17 MENT, HEALTH, STATE FIS18 CAL RELIEF, AND OTHER 

19 PROVISIONS 

20 TITLE I—TAX PROVISIONS 

21 SEC. 1000. SHORT TITLE, ETC. 

22 (a) SHORT TITLE.—This title may be cited as the 

23 ‘‘American Recovery and Reinvestment Tax Act of 2009’’. 

24 (b) REFERENCE.—Except as otherwise expressly pro25 vided, whenever in this title an amendment or repeal is 


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1 expressed in terms of an amendment to, or repeal of, a 

2 section or other provision, the reference shall be consid3 ered to be made to a section or other provision of the In4 ternal Revenue Code of 1986. 

5 (c) TABLE OF CONTENTS.—The table of contents for 

6 this title is as follows: 

TITLE I—TAX PROVISIONS 

Sec. 1000. Short title, etc. 

Subtitle A—Tax Relief for Individuals and Families 

PART I—GENERAL TAX RELIEF

Sec. 1001. Making work pay credit. 

Sec. 1002. Temporary increase in earned income tax credit. 

Sec. 1003. Temporary increase of refundable portion of child credit. 

Sec. 1004. American opportunity tax credit. 

Sec. 1005. Computer technology and equipment allowed as a qualified higher 

education expense for section 529 accounts in 2009 and 2010. 

Sec. 1006. 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. 


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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. 

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. 


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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. 

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. 


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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. 

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 sub6 chapter A of chapter 1 is amended by inserting after sec7 tion 36 the following new section: 

8 ‘‘SEC. 36A. MAKING WORK PAY CREDIT. 

9 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli10 gible 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 re16 turn). 

17 ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED

18 GROSS INCOME.— 

19 ‘‘(1) IN GENERAL.—The amount allowable as a 

20 credit under subsection (a) (determined without re21 gard to this paragraph and subsection (c)) for the 

22 taxable year shall be reduced (but not below zero) by 


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1 4 percent of so much of the taxpayer’s modified ad2 justed gross income as exceeds $70,000 ($140,000 

3 in the case of a joint return). 

4 ‘‘(2) MODIFIED ADJUSTED GROSS INCOME.— 

5 For purposes of subparagraph (A), the term ‘modi6 fied adjusted gross income’ means the adjusted 

7 gross income of the taxpayer for the taxable year in8 creased by any amount excluded from gross income 

9 under section 911, 931, or 933. 

10 ‘‘(c) REDUCTION FOR CERTAIN OTHER PAY11 MENTS.—The credit allowed under subsection (a) for any 

12 taxable year shall be reduced by the amount of any pay13 ments received by the taxpayer during such taxable year 

14 under section 1601 of the American Recovery and Rein15 vestment Tax Act of 2009. 

16 ‘‘(d) DEFINITIONS.—For purposes of this section— 

17 ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

18 individual’ means any individual other than— 

19 ‘‘(A) any nonresident alien individual, 

20 ‘‘(B) any individual with respect to whom 

21 a deduction under section 151 is allowable to 

22 another taxpayer for a taxable year beginning 

23 in the calendar year in which the individual’s 

24 taxable year begins, and 

25 ‘‘(C) an estate or trust. 


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1 Such term shall not include any individual unless the 

2 requirements of section 32(c)(1)(E) are met with re3 spect to such individual. 

4 ‘‘(2) EARNED INCOME.—The term ‘earned in5 come’ has the meaning given such term by section 

6 32(c)(2), except that such term shall not include net 

7 earnings from self-employment which are not taken 

8 into account in computing taxable income. For pur9 poses of the preceding sentence, any amount ex10 cluded from gross income by reason of section 112 

11 shall be treated as earned income which is taken 

12 into account in computing taxable income for the 

13 taxable year. 

14 ‘‘(e) TERMINATION.—This section shall not apply to 

15 taxable years beginning after December 31, 2010.’’. 

16 (b) TREATMENT OF POSSESSIONS.— 

17 (1) PAYMENTS TO POSSESSIONS.— 

18 (A) MIRROR CODE POSSESSION.—The Sec19 retary of the Treasury shall pay to each posses20 sion of the United States with a mirror code 

21 tax system amounts equal to the loss to that 

22 possession by reason of the amendments made 

23 by this section with respect to taxable years be24 ginning in 2009 and 2010. Such amounts shall 

25 be determined by the Secretary of the Treasury 


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1 based on information provided by the govern2 ment of the respective possession. 

3 (B) OTHER POSSESSIONS.—The Secretary 

4 of the Treasury shall pay to each possession of 

5 the United States which does not have a mirror 

6 code tax system amounts estimated by the Sec7 retary of the Treasury as being equal to the ag8 gregate benefits that would have been provided 

9 to residents of such possession by reason of the 

10 amendments made by this section for taxable 

11 years beginning in 2009 and 2010 if a mirror 

12 code tax system had been in effect in such pos13 session. The preceding sentence shall not apply 

14 with respect to any possession of the United 

15 States unless such possession has a plan, which 

16 has been approved by the Secretary of the 

17 Treasury, under which such possession will 

18 promptly distribute such payments to the resi19 dents of such possession. 

20 (2) COORDINATION WITH CREDIT ALLOWED

21 AGAINST UNITED STATES INCOME TAXES.—No cred22 it shall be allowed against United States income 

23 taxes for any taxable year under section 36A of the 

24 Internal Revenue Code of 1986 (as added by this 

25 section) to any person— 


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1 (A) to whom a credit is allowed against 

2 taxes imposed by the possession by reason of 

3 the amendments made by this section for such 

4 taxable year, or 

5 (B) who is eligible for a payment under a 

6 plan described in paragraph (1)(B) with respect 

7 to such taxable year. 

8 (3) DEFINITIONS AND SPECIAL RULES.— 

9 (A) POSSESSION OF THE UNITED

10 STATES.—For purposes of this subsection, the 

11 term ‘‘possession of the United States’’ includes 

12 the Commonwealth of Puerto Rico and the 

13 Commonwealth of the Northern Mariana Is14 lands. 

15 (B) MIRROR CODE TAX SYSTEM.—For pur16 poses of this subsection, the term ‘‘mirror code 

17 tax system’’ means, with respect to any posses18 sion of the United States, the income tax sys19 tem of such possession if the income tax liabil20 ity of the residents of such possession under 

21 such system is determined by reference to the 

22 income tax laws of the United States as if such 

23 possession were the United States. 

24 (C) TREATMENT OF PAYMENTS.—For pur25 poses of section 1324(b)(2) of title 31, United 


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1 States Code, the payments under this sub2 section shall be treated in the same manner as 

3 a refund due from the credit allowed under sec4 tion 36A of the Internal Revenue Code of 1986 

5 (as added by this section). 

6 (c) REFUNDS DISREGARDED IN THE ADMINISTRA7 TION OF FEDERAL PROGRAMS AND FEDERALLY AS8 SISTED PROGRAMS.—Any credit or refund allowed or 

9 made to any individual by reason of section 36A of the 

10 Internal Revenue Code of 1986 (as added by this section) 

11 or by reason of subsection (b) of this section shall not be 

12 taken into account as income and shall not be taken into 

13 account as resources for the month of receipt and the fol14 lowing 2 months, for purposes of determining the eligi15 bility of such individual or any other individual for benefits 

16 or assistance, or the amount or extent of benefits or assist17 ance, under any Federal program or under any State or 

18 local program financed in whole or in part with Federal 

19 funds. 

20 (d) AUTHORITY RELATING TO CLERICAL ERRORS.— 

21 Section 6213(g)(2) is amended by striking ‘‘and’’ at the 

22 end of subparagraph (L)(ii), by striking the period at the 

23 end of subparagraph (M) and inserting ‘‘, and’’, and by 

24 adding at the end the following new subparagraph: 


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1 ‘‘(N) an omission of the reduction required 

2 under section 36A(c) with respect to the credit 

3 allowed under section 36A or an omission of the 

4 correct TIN required under section 

5 36A(d)(1).’’. 

6 (e) CONFORMING AMENDMENTS.— 

7 (1) Section 6211(b)(4)(A) is amended by insert8 ing ‘‘36A,’’ after ‘‘36,’’. 

9 (2) Section 1324(b)(2) of title 31, United 

10 States Code, is amended by inserting ‘‘36A,’’ after 

11 ‘‘36,’’. 

12 (3) The table of sections for subpart C of part 

13 IV of subchapter A of chapter 1 is amended by in14 serting after the item relating to section 36 the fol15 lowing new item: 

‘‘Sec. 36A. Making work pay credit.’’. 

16 (f) EFFECTIVE DATE.—This section, and the amend17 ments made by this section, shall apply to taxable years 

18 beginning after December 31, 2008. 

19 SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX 

20 CREDIT. 

21 (a) IN GENERAL.—Subsection (b) of section 32 is 

22 amended by adding at the end the following new para23 graph: 


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1 ‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 

2 the case of any taxable year beginning in 2009 or 

3 2010— 

4 ‘‘(A) INCREASED CREDIT PERCENTAGE

5 FOR 3 OR MORE QUALIFYING CHILDREN.—In 

6 the case of a taxpayer with 3 or more qualifying 

7 children, the credit percentage is 45 percent. 

8 ‘‘(B) REDUCTION OF MARRIAGE PEN9 ALTY.— 

10 ‘‘(i) IN GENERAL.—The dollar amount 

11 in effect under paragraph (2)(B) shall be 

12 $5,000. 

13 ‘‘(ii) INFLATION ADJUSTMENT.—In 

14 the case of any taxable year beginning in 

15 2010, the $5,000 amount in clause (i) 

16 shall be increased by an amount equal to— 

17 ‘‘(I) such dollar amount, multi18 plied by 

19 ‘‘(II) the cost of living adjust20 ment determined under section 1(f)(3) 

21 for the calendar year in which the tax22 able year begins determined by sub23 stituting ‘calendar year 2008’ for ‘cal24 endar year 1992’ in subparagraph (B) 

25 thereof. 


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1 ‘‘(iii) ROUNDING.—Subparagraph (A) 

2 of subsection (j)(2) shall apply after taking 

3 into account any increase under clause 

4 (ii).’’. 

5 (b) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2008. 

8 SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE POR9 TION OF CHILD CREDIT. 

10 (a) IN GENERAL.—Paragraph (4) of section 24(d) is 

11 amended to read as follows: 

12 ‘‘(4) SPECIAL RULE FOR 2009 AND 2010.—Not13 withstanding paragraph (3), in the case of any tax14 able year beginning in 2009 or 2010, the dollar 

15 amount in effect for such taxable year under para16 graph (1)(B)(i) shall be $8,100.’’. 

17 (b) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to taxable years beginning after 

19 December 31, 2008. 

20 SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT. 

21 (a) IN GENERAL.—Section 25A (relating to Hope 

22 scholarship credit) is amended by redesignating subsection 

23 (i) as subsection (j) and by inserting after subsection (h) 

24 the following new subsection: 


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1 ‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.—In the 

2 case of any taxable year beginning in 2009 or 2010— 

3 ‘‘(1) INCREASE IN CREDIT.—The Hope Scholar4 ship Credit shall be an amount equal to the sum 

5 of— 

6 ‘‘(A) 100 percent of so much of the quali7 fied tuition and related expenses paid by the 

8 taxpayer during the taxable year (for education 

9 furnished to the eligible student during any 

10 academic period beginning in such taxable year) 

11 as does not exceed $2,000, plus 

12 ‘‘(B) 25 percent of such expenses so paid 

13 as exceeds $2,000 but does not exceed $4,000. 

14 ‘‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF

15 POST-SECONDARY EDUCATION.—Subparagraphs (A) 

16 and (C) of subsection (b)(2) shall be applied by sub17 stituting ‘4’ for ‘2’. 

18 ‘‘(3) QUALIFIED TUITION AND RELATED EX19 PENSES TO INCLUDE REQUIRED COURSE MATE20 RIALS.—Subsection (f)(1)(A) shall be applied by 

21 substituting ‘tuition, fees, and course materials’ for 

22 ‘tuition and fees’. 

23 ‘‘(4) INCREASE IN AGI LIMITS FOR HOPE

24 SCHOLARSHIP CREDIT.—In lieu of applying sub25 section (d) with respect to the Hope Scholarship 


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1 Credit, such credit (determined without regard to 

2 this paragraph) shall be reduced (but not below 

3 zero) by the amount which bears the same ratio to 

4 such credit (as so determined) as— 

5 ‘‘(A) the excess of— 

6 ‘‘(i) the taxpayer’s modified adjusted 

7 gross income (as defined in subsection 

8 (d)(3)) for such taxable year, over 

9 ‘‘(ii) $80,000 ($160,000 in the case of 

10 a joint return), bears to 

11 ‘‘(B) $10,000 ($20,000 in the case of a 

12 joint return). 

13 ‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE

14 MINIMUM TAX.—In the case of a taxable year to 

15 which section 26(a)(2) does not apply, so much of 

16 the credit allowed under subsection (a) as is attrib17 utable to the Hope Scholarship Credit shall not ex18 ceed the excess of— 

19 ‘‘(A) the sum of the regular tax liability 

20 (as defined in section 26(b)) plus the tax im21 posed by section 55, over 

22 ‘‘(B) the sum of the credits allowable 

23 under this subpart (other than this subsection 

24 and sections 23, 25D, and 30D) and section 27 

25 for the taxable year. 


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1 Any reference in this section or section 24, 25, 26, 

2 25B, 904, or 1400C to a credit allowable under this 

3 subsection shall be treated as a reference to so much 

4 of the credit allowable under subsection (a) as is at5 tributable to the Hope Scholarship Credit. 

6 ‘‘(6) PORTION OF CREDIT MADE REFUND7 ABLE.—30 percent of so much of the credit allowed 

8 under subsection (a) as is attributable to the Hope 

9 Scholarship Credit (determined after application of 

10 paragraph (4) and without regard to this paragraph 

11 and section 26(a)(2) or paragraph (5), as the case 

12 may be) shall be treated as a credit allowable under 

13 subpart C (and not allowed under subsection (a)). 

14 The preceding sentence shall not apply to any tax15 payer for any taxable year if such taxpayer is a child 

16 to whom subsection (g) of section 1 applies for such 

17 taxable year. 

18 ‘‘(7) COORDINATION WITH MIDWESTERN DIS19 ASTER AREA BENEFITS.—In the case of a taxpayer 

20 with respect to whom section 702(a)(1)(B) of the 

21 Heartland Disaster Tax Relief Act of 2008 applies 

22 for any taxable year, such taxpayer may elect to 

23 waive the application of this subsection to such tax24 payer for such taxable year.’’. 

25 (b) CONFORMING AMENDMENTS.— 


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1 (1) Section 24(b)(3)(B) is amended by inserting 

2 ‘‘25A(i),’’ after ‘‘23,’’. 

3 (2) Section 25(e)(1)(C)(ii) is amended by in4 serting ‘‘25A(i),’’ after ‘‘24,’’. 

5 (3) Section 26(a)(1) is amended by inserting 

6 ‘‘25A(i),’’ after ‘‘24,’’. 

7 (4) Section 25B(g)(2) is amended by inserting 

8 ‘‘25A(i),’’ after ‘‘23,’’. 

9 (5) Section 904(i) is amended by inserting 

10 ‘‘25A(i),’’ after ‘‘24,’’. 

11 (6) Section 1400C(d)(2) is amended by insert12 ing ‘‘25A(i),’’ after ‘‘24,’’. 

13 (7) Section 1324(b)(2) of title 31, United 

14 States Code, is amended by inserting ‘‘25A,’’ before 

15 ‘‘35’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to taxable years beginning after 

18 December 31, 2008. 

19 (d) APPLICATION OF EGTRRA SUNSET.—The 

20 amendment made by subsection (b)(1) shall be subject to 

21 title IX of the Economic Growth and Tax Relief Reconcili22 ation Act of 2001 in the same manner as the provision 

23 of such Act to which such amendment relates. 

24 (e) TREASURY STUDIES REGARDING EDUCATION IN25 CENTIVES.— 


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1 (1) STUDY REGARDING COORDINATION WITH

2 NON-TAX EDUCATIONAL INCENTIVES.—The Sec3 retary of the Treasury, or the Secretary’s delegate, 

4 shall study how to coordinate the credit allowed 

5 under section 25A of the Internal Revenue Code of 

6 1986 with the Federal Pell Grant program under 

7 section 401 of the Higher Education Act of 1965. 

8 (2) STUDY REGARDING IMPOSITION OF COMMU9 NITY SERVICE REQUIREMENTS.—The Secretary of 

10 the Treasury, or the Secretary’s delegate, shall study 

11 the feasibility of requiring students to perform com12 munity service as a condition of taking their tuition 

13 and related expenses into account under section 25A 

14 of the Internal Revenue Code of 1986. 

15 (3) REPORT.—Not later than 1 year after the 

16 date of the enactment of this Act, the Secretary of 

17 the Treasury, or the Secretary’s delegate, shall re18 port to Congress on the results of the studies con19 ducted under this paragraph. 

20 SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT AL21 LOWED AS A QUALIFIED HIGHER EDUCATION 

22 EXPENSE FOR SECTION 529 ACCOUNTS IN 

23 2009 AND 2010. 

24 (a) IN GENERAL.—Section 529(e)(3)(A) is amended 

25 by striking ‘‘and’’ at the end of clause (i), by striking the 


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1 period at the end of clause (ii), and by adding at the end 

2 the following: 

3 ‘‘(iii) expenses paid or incurred in 

4 2009 or 2010 for the purchase of any com5 puter technology or equipment (as defined 

6 in section 170(e)(6)(F)(i)) or Internet ac7 cess and related services, if such tech8 nology, equipment, or services are to be 

9 used by the beneficiary and the bene10 ficiary’s family during any of the years the 

11 beneficiary is enrolled at an eligible edu12 cational institution. 

13 Clause (iii) shall not include expenses for com14 puter software designed for sports, games, or 

15 hobbies unless the software is predominantly 

16 educational in nature.’’. 

17 (b) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to expenses paid or incurred after 

19 December 31, 2008. 

20 SEC. 1006. CREDIT FOR CERTAIN HOME PURCHASES. 

21 (a) ALLOWANCE OF CREDIT.—Subpart A of part IV 

22 of subchapter A of chapter 1 is amended by inserting after 

23 section 25D the following new section: 

24 ‘‘SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES. 

25 ‘‘(a) ALLOWANCE OF CREDIT.— 


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1 ‘‘(1) IN GENERAL.—In the case of an individual 

2 who is a purchaser of a principal residence during 

3 the taxable year, there shall be allowed as a credit 

4 against the tax imposed by this chapter an amount 

5 equal to 10 percent of the purchase price of the resi6 dence. 

7 ‘‘(2) DOLLAR LIMITATION.—The amount of the 

8 credit allowed under paragraph (1) shall not exceed 

9 $15,000. 

10 ‘‘(3) ALLOCATION OF CREDIT AMOUNT.—At the 

11 election of the taxpayer, the amount of the credit al12 lowed under paragraph (1) (after application of 

13 paragraph (2)) may be equally divided among the 2 

14 taxable years beginning with the taxable year in 

15 which the purchase of the principal residence is 

16 made. 

17 ‘‘(b) LIMITATIONS.— 

18 ‘‘(1) DATE OF PURCHASE.—The credit allowed 

19 under subsection (a) shall be allowed only with re20 spect to purchases made— 

21 ‘‘(A) after the date of the enactment of the 

22 American Recovery and Reinvestment Tax Act 

23 of 2009, and 

24 ‘‘(B) on or before the date that is 1 year 

25 after such date of enactment. 


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1 ‘‘(2) LIMITATION BASED ON AMOUNT OF

2 TAX.—In the case of a taxable year to which section 

3 26(a)(2) does not apply, the credit allowed under 

4 subsection (a) for any taxable year shall not exceed 

5 the excess of— 

6 ‘‘(A) the sum of the regular tax liability 

7 (as defined in section 26(b)) plus the tax im8 posed by section 55, over 

9 ‘‘(B) the sum of the credits allowable 

10 under this subpart (other than this section) for 

11 the taxable year. 

12 ‘‘(3) ONE-TIME ONLY.— 

13 ‘‘(A) IN GENERAL.—If a credit is allowed 

14 under this section in the case of any individual 

15 (and such individual’s spouse, if married) with 

16 respect to the purchase of any principal resi17 dence, no credit shall be allowed under this sec18 tion in any taxable year with respect to the pur19 chase of any other principal residence by such 

20 individual or a spouse of such individual. 

21 ‘‘(B) JOINT PURCHASE.—In the case of a 

22 purchase of a principal residence by 2 or more 

23 unmarried individuals or by 2 married individ24 uals filing separately, no credit shall be allowed 

25 under this section if a credit under this section 


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1 has been allowed to any of such individuals in 

2 any taxable year with respect to the purchase of 

3 any other principal residence. 

4 ‘‘(c) PRINCIPAL RESIDENCE.—For purposes of this 

5 section, the term ‘principal residence’ has the same mean6 ing as when used in section 121. 

7 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No credit shall 

8 be allowed under this section for any purchase for which 

9 a credit is allowed under section 36 or section 1400C. 

10 ‘‘(e) SPECIAL RULES.— 

11 ‘‘(1) JOINT PURCHASE.— 

12 ‘‘(A) MARRIED INDIVIDUALS FILING SEPA13 RATELY.—In the case of 2 married individuals 

14 filing separately, subsection (a) shall be applied 

15 to each such individual by substituting ‘$7,500’ 

16 for ‘$15,000’ in subsection (a)(1). 

17 ‘‘(B) UNMARRIED INDIVIDUALS.—If 2 or 

18 more individuals who are not married purchase 

19 a principal residence, the amount of the credit 

20 allowed under subsection (a) shall be allocated 

21 among such individuals in such manner as the 

22 Secretary may prescribe, except that the total 

23 amount of the credits allowed to all such indi24 viduals shall not exceed $15,000. 


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1 ‘‘(2) PURCHASE.—In defining the purchase of a 

2 principal residence, rules similar to the rules of 

3 paragraphs (2) and (3) of section 1400C(e) (as in 

4 effect on the date of the enactment of this section) 

5 shall apply. 

6 ‘‘(3) REPORTING REQUIREMENT.—Rules similar 

7 to the rules of section 1400C(f) (as so in effect) 

8 shall apply. 

9 ‘‘(f) RECAPTURE OF CREDIT IN THE CASE OF CER10 TAIN DISPOSITIONS.— 

11 ‘‘(1) IN GENERAL.—In the event that a tax12 payer— 

13 ‘‘(A) disposes of the principal residence 

14 with respect to which a credit was allowed 

15 under subsection (a), or 

16 ‘‘(B) fails to occupy such residence as the 

17 taxpayer’s principal residence, 

18 at any time within 24 months after the date on 

19 which the taxpayer purchased such residence, then 

20 the tax imposed by this chapter for the taxable year 

21 during which such disposition occurred or in which 

22 the taxpayer failed to occupy the residence as a prin23 cipal residence shall be increased by the amount of 

24 such credit. 

25 ‘‘(2) EXCEPTIONS.— 


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1 ‘‘(A) DEATH OF TAXPAYER.—Paragraph 

2 (1) shall not apply to any taxable year ending 

3 after the date of the taxpayer’s death. 

4 ‘‘(B) INVOLUNTARY CONVERSION.—Para5 graph (1) shall not apply in the case of a resi6 dence which is compulsorily or involuntarily 

7 converted (within the meaning of section 

8 1033(a)) if the taxpayer acquires a new prin9 cipal residence within the 2-year period begin10 ning on the date of the disposition or cessation 

11 referred to in such paragraph. Paragraph (1) 

12 shall apply to such new principal residence dur13 ing the remainder of the 24-month period de14 scribed in such paragraph as if such new prin15 cipal residence were the converted residence. 

16 ‘‘(C) TRANSFERS BETWEEN SPOUSES OR

17 INCIDENT TO DIVORCE.—In the case of a trans18 fer of a residence to which section 1041(a) ap19 plies— 

20 ‘‘(i) paragraph (1) shall not apply to 

21 such transfer, and 

22 ‘‘(ii) in the case of taxable years end23 ing after such transfer, paragraph (1) shall 

24 apply to the transferee in the same manner 


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1 as if such transferee were the transferor 

2 (and shall not apply to the transferor). 

3 ‘‘(D) RELOCATION OF MEMBERS OF THE

4 ARMED FORCES.—Paragraph (1) shall not 

5 apply in the case of a member of the Armed 

6 Forces of the United States on active duty who 

7 moves pursuant to a military order and incident 

8 to a permanent change of station. 

9 ‘‘(3) JOINT RETURNS.—In the case of a credit 

10 allowed under subsection (a) with respect to a joint 

11 return, half of such credit shall be treated as having 

12 been allowed to each individual filing such return for 

13 purposes of this subsection. 

14 ‘‘(4) RETURN REQUIREMENT.—If the tax im15 posed by this chapter for the taxable year is in16 creased under this subsection, the taxpayer shall, 

17 notwithstanding section 6012, be required to file a 

18 return with respect to the taxes imposed under this 

19 subtitle. 

20 ‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub21 title, if a credit is allowed under this section with respect 

22 to the purchase of any residence, the basis of such resi23 dence shall be reduced by the amount of the credit so al24 lowed. 


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1 ‘‘(h) ELECTION TO TREAT PURCHASE IN PRIOR

2 YEAR.—In the case of a purchase of a principal residence 

3 during the period described in subsection (b)(1), a tax4 payer may elect to treat such purchase as made on Decem5 ber 31, 2008, for purposes of this section.’’. 

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

7 for subpart A of part IV of subchapter A of chapter 1 

8 is amended by inserting after the item relating to section 

9 25D the following new item: 

‘‘Sec. 25E. Credit for certain home purchases.’’. 

10 (c) SUNSET OF CURRENT FIRST-TIME HOMEBUYER

11 CREDIT.— 

12 (1) IN GENERAL.—Subsection (h) of section 36 

13 is amended by striking ‘‘July 1, 2009’’ and inserting 

14 ‘‘the date of the enactment of the American Recov15 ery and Reinvestment Tax Act of 2009’’. 

16 (2) ELECTION TO TREAT PURCHASE IN PRIOR

17 YEAR.—Subsection (g) of section 36 is amended by 

18 striking ‘‘July 1, 2009’’ and inserting ‘‘the date of 

19 the enactment of the American Recovery and Rein20 vestment Tax Act of 2009’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to purchases after the date of the 

23 enactment of this Act. 


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1 SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEM2 PLOYMENT COMPENSATION. 

3 (a) IN GENERAL.—Section 85 of the Internal Rev4 enue Code of 1986 (relating to unemployment compensa5 tion) is amended by adding at the end the following new 

6 subsection: 

7 ‘‘(c) SPECIAL RULE FOR 2009.—In the case of any 

8 taxable year beginning in 2009, gross income shall not in9 clude so much of the unemployment compensation received 

10 by an individual as does not exceed $2,400.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2008. 

14 SEC. 1008. ABOVE-THE-LINE DEDUCTION FOR INTEREST ON 

15 INDEBTEDNESS WITH RESPECT TO THE PUR16 CHASE OF CERTAIN MOTOR VEHICLES. 

17 (a) IN GENERAL.—Paragraph (2) of section 163(h) 

18 of the Internal Revenue Code of 1986 is amended— 

19 (1) by striking ‘‘and’’ at the end of subpara20 graph (E), 

21 (2) by striking the period at the end of sub22 paragraph (F) and inserting ‘‘, and’’, and 

23 (3) by adding at the end the following new sub24 paragraph: 

25 ‘‘(G) any qualified motor vehicle interest 

26 (within the meaning of paragraph (5)).’’. 


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1 (b) QUALIFIED MOTOR VEHICLE INTEREST.—Sec2 tion 163(h) of the Internal Revenue Code of 1986 is 

3 amended by adding at the end the following new para4 graph: 

5 ‘‘(5) QUALIFIED MOTOR VEHICLE INTEREST.— 

6 For purposes of this subsection— 

7 ‘‘(A) IN GENERAL.—The term ‘qualified 

8 motor vehicle interest’ means any interest which 

9 is paid or accrued during the taxable year on 

10 any indebtedness which— 

11 ‘‘(i) is incurred after November 12, 

12 2008, and before January 1, 2010, in ac13 quiring any qualified motor vehicle of the 

14 taxpayer, and 

15 ‘‘(ii) is secured by such qualified 

16 motor vehicle. 

17 Such term also includes any indebtedness se18 cured by such qualified motor vehicle resulting 

19 from the refinancing of indebtedness meeting 

20 the requirements of the preceding sentence (or 

21 this sentence); but only to the extent the 

22 amount of the indebtedness resulting from such 

23 refinancing does not exceed the amount of the 

24 refinanced indebtedness. 


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1 ‘‘(B) DOLLAR LIMITATION.—The aggre2 gate amount of indebtedness treated as de3 scribed in subparagraph (A) for any period 

4 shall not exceed $49,500 ($24,750 in the case 

5 of a separate return by a married individual). 

6 ‘‘(C) INCOME LIMITATION.—The amount 

7 otherwise treated as interest under subpara8 graph (A) for any taxable year (after the appli9 cation of subparagraph (B)) shall be reduced 

10 (but not below zero) by the amount which bears 

11 the same ratio to the amount which is so treat12 ed as— 

13 ‘‘(i) the excess (if any) of— 

14 ‘‘(I) the taxpayer’s modified ad15 justed gross income for such taxable 

16 year, over 

17 ‘‘(II) $125,000 ($250,000 in the 

18 case of a joint return), bears to 

19 ‘‘(ii) $10,000. 

20 For purposes of the preceding sentence, the 

21 term ‘modified adjusted gross income’ means 

22 the adjusted gross income of the taxpayer for 

23 the taxable year increased by any amount ex24 cluded from gross income under section 911, 

25 931, or 933. 


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1 ‘‘(D) QUALIFIED MOTOR VEHICLE.—The 

2 term ‘qualified motor vehicle’ means a pas3 senger automobile (within the meaning of sec4 tion 30B(h)(3)) or a light truck (within the 

5 meaning of such section)— 

6 ‘‘(i) which is acquired for use by the 

7 taxpayer and not for resale after November 

8 12, 2008, and before January 1, 2010, 

9 ‘‘(ii) the original use of which com10 mences with the taxpayer, and 

11 ‘‘(iii) which has a gross vehicle weight 

12 rating of not more than 8,500 pounds.’’. 

13 (c) DEDUCTION ALLOWED ABOVE-THE-LINE.—Sec14 tion 62(a) of the Internal Revenue Code of 1986 is amend15 ed by inserting after paragraph (21) the following new 

16 paragraph: 

17 ‘‘(22) QUALIFIED MOTOR VEHICLE INTER18 EST.—The deduction allowed under section 163 by 

19 reason of subsection (h)(2)(G) thereof.’’. 

20 (d) REPORTING OF QUALIFIED MOTOR VEHICLE IN21 TEREST.— 

22 (1) IN GENERAL.—Subpart B of part III of 

23 subchapter A of chapter 61 of the Internal Revenue 

24 Code of 1986 is amended by adding at the end the 

25 following new section: 


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1 ‘‘SEC. 6050X. RETURNS RELATING TO QUALIFIED MOTOR 

2 VEHICLE INTEREST RECEIVED IN TRADE OR 

3 BUSINESS FROM INDIVIDUALS. 

4 ‘‘(a) QUALIFIED MOTOR VEHICLE INTEREST.—Any 

5 person— 

6 ‘‘(1) who is engaged in a trade or business, and 

7 ‘‘(2) who, in the course of such trade or busi8 ness, receives from any individual interest aggre9 gating $600 or more for any calendar year on any 

10 indebtedness secured by a qualified motor vehicle (as 

11 defined in section 163(h)(5)(D)), 

12 shall make the return described in subsection (b) with re13 spect to each individual from whom such interest was re14 ceived at such time as the Secretary may by regulations 

15 prescribe. 

16 ‘‘(b) FORM AND MANNER OF RETURNS.—A return 

17 is described in this subsection if such return— 

18 ‘‘(1) is in such form as the Secretary may pre19 scribe, 

20 ‘‘(2) contains— 

21 ‘‘(A) the name and address of the indi22 vidual from whom the interest described in sub23 section (a)(2) was received, 

24 ‘‘(B) the amount of such interest received 

25 for the calendar year, and 


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1 ‘‘(C) such other information as the Sec2 retary may prescribe. 

3 ‘‘(c) APPLICATION TO GOVERNMENTAL UNITS.—For 

4 purposes of subsection (a)— 

5 ‘‘(1) TREATED AS PERSONS.—The term ‘per6 son’ includes any governmental unit (and any agency 

7 or instrumentality thereof). 

8 ‘‘(2) SPECIAL RULES.—In the case of a govern9 mental unit or any agency or instrumentality there10 of— 

11 ‘‘(A) subsection (a) shall be applied with12 out regard to the trade or business requirement 

13 contained therein, and 

14 ‘‘(B) any return required under subsection 

15 (a) shall be made by the officer or employee ap16 propriately designated for the purpose of mak17 ing such return. 

18 ‘‘(d) STATEMENTS TO BE FURNISHED TO INDIVID19 UALS WITH RESPECT TO WHOM INFORMATION IS RE20 QUIRED.—Every person required to make a return under 

21 subsection (a) shall furnish to each individual whose name 

22 is required to be set forth in such return a written state23 ment showing— 


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1 ‘‘(1) the name, address, and phone number of 

2 the information contact of the person required to 

3 make such return, and 

4 ‘‘(2) the aggregate amount of interest described 

5 in subsection (a)(2) received by the person required 

6 to make such return from the individual to whom 

7 the statement is required to be furnished. 

8 The written statement required under the preceding sen9 tence shall be furnished on or before January 31 of the 

10 year following the calendar year for which the return 

11 under subsection (a) was required to be made. 

12 ‘‘(e) RETURNS WHICH WOULD BE REQUIRED TO BE

13 MADE BY 2 OR MORE PERSONS.—Except to the extent 

14 provided in regulations prescribed by the Secretary, in the 

15 case of interest received by any person on behalf of an16 other person, only the person first receiving such interest 

17 shall be required to make the return under subsection 

18 (a).’’. 

19 (2) AMENDMENTS RELATING TO PENALTIES.— 

20 (A) Section 6721(e)(2)(A) of such Code is 

21 amended by striking ‘‘or 6050L’’ and inserting 

22 ‘‘6050L, or 6050X’’. 

23 (B) Section 6722(c)(1)(A) of such Code is 

24 amended by striking ‘‘or 6050L(c)’’ and insert25 ing ‘‘6050L(c), or 6050X(d)’’. 


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1 (C) Subparagraph (B) of section 

2 6724(d)(1) of such Code is amended by redesig3 nating clauses (xvi) through (xxii) as clauses 

4 (xvii) through (xxiii), respectively, and by in5 serting after clause (xii) the following new 

6 clause: 

7 ‘‘(xvi) section 6050X (relating to re8 turns relating to qualified motor vehicle in9 terest received in trade or business from 

10 individuals),’’. 

11 (D) Paragraph (2) of section 6724(d) of 

12 such Code is amended by striking the period at 

13 the end of subparagraph (DD) and inserting ‘‘, 

14 or’’ and by inserting after subparagraph (DD) 

15 the following new subparagraph: 

16 ‘‘(EE) section 6050X(d) (relating to re17 turns relating to qualified motor vehicle interest 

18 received in trade or business from individ19 uals).’’. 

20 (3) CLERICAL AMENDMENT.—The table of sec21 tions for subpart B of part III of subchapter A of 

22 chapter 61 of such Code is amended by inserting 

23 after the item relating to section 6050W the fol24 lowing new item: 

‘‘Sec. 6050X. Returns relating to qualified motor vehicle interest received in 

trade or business from individuals.’’. 


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1 (e) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 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 

8 the Internal Revenue Code of 1986 is amended by insert9 ing after paragraph (5) the following new paragraph: 

10 ‘‘(6) Qualified motor vehicle taxes.’’. 

11 (b) QUALIFIED MOTOR VEHICLE TAXES.—Sub12 section (b) of section 164 of the Internal Revenue Code 

13 of 1986 is amended by adding at the end the following 

14 new paragraph: 

15 ‘‘(6) QUALIFIED MOTOR VEHICLE TAXES.— 

16 ‘‘(A) IN GENERAL.—For purposes of this 

17 section, the term ‘qualified motor vehicle taxes’ 

18 means any State or local sales or excise tax im19 posed on the purchase of a qualified motor vehi20 cle (as defined in section 163(h)(5)(D)). 

21 ‘‘(B) DOLLAR LIMITATION.—The amount 

22 taken into account under subparagraph (A) for 

23 any taxable year shall not exceed $49,500 

24 ($24,750 in the case of a separate return by a 

25 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 subpara4 graph (B)) for any taxable year shall be re5 duced (but not below zero) by the amount 

6 which bears the same ratio to the amount which 

7 is so treated 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 

16 term ‘modified adjusted gross income’ means 

17 the adjusted gross income of the taxpayer for 

18 the taxable year increased by any amount ex19 cluded from gross income under section 911, 

20 931, or 933. 

21 ‘‘(D) QUALIFIED MOTOR VEHICLE TAXES

22 NOT INCLUDED IN COST OF ACQUIRED PROP23 ERTY.—The last sentence of subsection (a) 

24 shall not apply to any qualified motor vehicle 

25 taxes. 


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1 ‘‘(E) COORDINATION WITH GENERAL

2 SALES TAX.—This paragraph shall not apply in 

3 the case of a taxpayer who makes an election 

4 under 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 con14 nection with the acquisition of a qualified motor 

15 vehicle, the aggregate amount of such indebted16 ness taken into account under such subpara17 graph shall be reduced, but not below zero, by 

18 the amount of any such taxes for which a de19 duction is allowed under section 164(a) by rea20 son of 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.—Sec25 tion 62(a) of the Internal Revenue Code of 1986, as 


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1 amended by section 1, is amended by inserting after para2 graph (22) the following new paragraph: 

3 ‘‘(23) QUALIFIED MOTOR VEHICLE TAXES.— 

4 The deduction allowed under section 164 by reason 

5 of subsection (a)(6) thereof.’’. 

6 (e) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 December 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) 

14 (relating to special rule for taxable years 2000 through 

15 2008) 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 

21 this section shall apply to taxable years beginning after 

22 December 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) 

4 (relating 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 be8 ginning 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 be12 ginning in 2009)’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 December 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 

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. 1102. 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— 

3 ‘‘(i) such facility shall be treated as 

4 energy property for purposes of this sec5 tion, and 

6 ‘‘(ii) the energy percentage with re7 spect to such property shall be 30 percent. 

8 ‘‘(B) DENIAL OF PRODUCTION CREDIT.— 

9 No credit shall be allowed under section 45 for 

10 any taxable year with respect to any qualified 

11 investment credit facility. 

12 ‘‘(C) QUALIFIED INVESTMENT CREDIT FA13 CILITY.—For purposes of this paragraph, the 

14 term ‘qualified investment credit facility’ means 

15 any of the following facilities if no credit has 

16 been allowed under section 45 with respect to 

17 such facility and the taxpayer makes an irrev18 ocable election to have this paragraph apply to 

19 such facility: 

20 ‘‘(i) WIND FACILITIES.—Any facility 

21 described in paragraph (1) of section 45(d) 

22 if such facility is placed in service in 2009, 

23 2010, 2011, or 2012. 

24 ‘‘(ii) OTHER FACILITIES.—Any facility 

25 described in paragraph (2), (3), (4), (6), 


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1 (7), (9), or (11) of section 45(d) if such fa2 cility is placed in service in 2009, 2010, 

3 2011, 2012, or 2013.’’. 

4 (b) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to facilities placed in service after 

6 December 31, 2008. 

7 SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT 

8 FOR RENEWABLE ENERGY PROPERTY. 

9 (a) REPEAL OF LIMITATION ON CREDIT FOR QUALI10 FIED SMALL WIND ENERGY PROPERTY.—Paragraph (4) 

11 of section 48(c) is amended by striking subparagraph (B) 

12 and by redesignating subparagraphs (C) and (D) as sub13 paragraphs (B) and (C). 

14 (b) REPEAL OF LIMITATION ON PROPERTY FI15 NANCED BY SUBSIDIZED ENERGY FINANCING.— 

16 (1) IN GENERAL.—Section 48(a)(4) is amended 

17 by adding at the end the following new subpara18 graph: 

19 ‘‘(D) TERMINATION.—This paragraph 

20 shall not apply to periods after December 31, 

21 2008, under rules similar to the rules of section 

22 48(m) (as in effect on the day before the date 

23 of the enactment of the Revenue Reconciliation 

24 Act of 1990).’’. 

25 (2) CONFORMING AMENDMENTS.— 


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1 (A) Section 25C(e)(1) is amended by strik2 ing ‘‘(8), and (9)’’ and inserting ‘‘and (8)’’. 

3 (B) Section 25D(e) is amended by striking 

4 paragraph (9). 

5 (C) Section 48A(b)(2) is amended by in6 serting ‘‘(without regard to subparagraph (D) 

7 thereof)’’ after ‘‘section 48(a)(4)’’. 

8 (D) Section 48B(b)(2) is amended by in9 serting ‘‘(without regard to subparagraph (D) 

10 thereof)’’ after ‘‘section 48(a)(4)’’. 

11 (c) EFFECTIVE DATE.— 

12 (1) IN GENERAL.—Except as provided in para13 graph (2), the amendment made by this section shall 

14 apply to periods after December 31, 2008, under 

15 rules similar to the rules of section 48(m) of the In16 ternal Revenue Code of 1986 (as in effect on the day 

17 before the date of the enactment of the Revenue 

18 Reconciliation Act of 1990). 

19 (2) CONFORMING AMENDMENTS.—The amend20 ments made by subsection (b)(2) shall apply to tax21 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 

12 of 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) 

19 is amended by inserting ‘‘(including the use of loans, 

20 grants, or other repayment mechanisms to implement such 

21 programs)’’ 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 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) MODIFICATIONS OF STANDARDS FOR ENERGY22 EFFICIENT BUILDING PROPERTY.— 

23 (1) ELECTRIC HEAT PUMPS.—Subparagraph 

24 (B) of section 25C(d)(3) is amended to read as fol25 lows: 


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1 ‘‘(B) an electric heat pump which achieves 

2 the highest efficiency tier established by the 

3 Consortium for Energy Efficiency, as in effect 

4 on January 1, 2009.’’. 

5 (2) CENTRAL AIR CONDITIONERS.—Subpara6 graph (C) of section 25C(d)(3) is amended by strik7 ing ‘‘2006’’ and inserting ‘‘2009’’. 

8 (3) WATER HEATERS.—Subparagraph (D) of 

9 section 25C(d)(3) is amended to read as follows: 

10 ‘‘(E) a natural gas, propane, or oil water 

11 heater which has either an energy factor of at 

12 least 0.82 or a thermal efficiency of at least 90 

13 percent.’’. 

14 (4) WOOD STOVES.—Subparagraph (E) of sec15 tion 25C(d)(3) is amended by inserting ‘‘, as meas16 ured using a lower heating value’’ after ‘‘75 per17 cent’’. 

18 (c) MODIFICATIONS OF STANDARDS FOR OIL FUR19 NACES AND HOT WATER BOILERS.— 

20 (1) IN GENERAL.—Paragraph (4) of section 

21 25C(d) is amended to read as follows: 

22 ‘‘(4) QUALIFIED NATURAL GAS, PROPANE, AND

23 OIL FURNACES AND HOT WATER BOILERS.— 

24 ‘‘(A) QUALIFIED NATURAL GAS FUR25 NACE.—The term ‘qualified natural gas furVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00461 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 nace’ means any natural gas furnace which 

2 achieves an annual fuel utilization efficiency 

3 rate of not less than 95. 

4 ‘‘(B) QUALIFIED NATURAL GAS HOT

5 WATER BOILER.—The term ‘qualified natural 

6 gas hot water boiler’ means any natural gas hot 

7 water boiler which achieves an annual fuel utili8 zation efficiency rate of not less than 90. 

9 ‘‘(C) QUALIFIED PROPANE FURNACE.— 

10 The term ‘qualified propane furnace’ means any 

11 propane furnace which achieves an annual fuel 

12 utilization efficiency rate of not less than 95. 

13 ‘‘(D) QUALIFIED PROPANE HOT WATER

14 BOILER.—The term ‘qualified propane hot 

15 water boiler’ means any propane hot water boil16 er which achieves an annual fuel utilization effi17 ciency rate of not less than 90. 

18 ‘‘(E) QUALIFIED OIL FURNACES.—The 

19 term ‘qualified oil furnace’ means any oil fur20 nace which achieves an annual fuel utilization 

21 efficiency rate of not less than 90. 

22 ‘‘(F) QUALIFIED OIL HOT WATER BOIL23 ER.—The term ‘qualified oil hot water boiler’ 

24 means any oil hot water boiler which achieves 


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1 an annual fuel utilization efficiency rate of not 

2 less than 90.’’. 

3 (2) CONFORMING AMENDMENT.—Clause (ii) of 

4 section 25C(d)(2)(A) is amended to read as follows: 

5 ‘‘(ii) any qualified natural gas fur6 nace, qualified propane furnace, qualified 

7 oil furnace, qualified natural gas hot water 

8 boiler, qualified propane hot water boiler, 

9 or qualified oil hot water boiler, or’’. 

10 (d) MODIFICATIONS OF STANDARDS FOR QUALIFIED

11 ENERGY EFFICIENCY IMPROVEMENTS.— 

12 (1) QUALIFICATIONS FOR EXTERIOR WINDOWS, 

13 DOORS, AND SKYLIGHTS.—Subsection (c) of section 

14 25C is amended by adding at the end the following 

15 new paragraph: 

16 ‘‘(4) QUALIFICATIONS FOR EXTERIOR WIN17 DOWS, DOORS, AND SKYLIGHTS.—Such term shall 

18 not include any component described in subpara19 graph (B) or (C) of paragraph (2) unless such com20 ponent is equal to or below a U factor of 0.30 and 

21 SHGC of 0.30.’’. 

22 (2) ADDITIONAL QUALIFICATION FOR INSULA23 TION.—Subparagraph (A) of section 25C(c)(2) is 

24 amended by inserting ‘‘and meets the prescriptive 

25 criteria for such material or system established by 


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1 the 2009 International Energy Conservation Code, 

2 as such Code (including supplements) is in effect on 

3 the date of the enactment of the American Recovery 

4 and Reinvestment Tax Act of 2009’’ after ‘‘such 

5 dwelling unit’’. 

6 (e) EXTENSION.—Section 25C(g)(2) is amended by 

7 striking ‘‘December 31, 2009’’ and inserting ‘‘December 

8 31, 2010’’. 

9 (f) EFFECTIVE DATES.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), the amendments made by this section 

12 shall apply to taxable years beginning after Decem13 ber 31, 2008. 

14 (2) EFFICIENCY STANDARDS.—The amend15 ments made by paragraphs (1), (2), and (3) of sub16 section (b) and subsections (c) and (d) shall apply 

17 to property placed in service after December 31, 

18 2009. 

19 SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL 

20 ENERGY EFFICIENT PROPERTY. 

21 (a) REMOVAL OF CREDIT LIMITATION FOR PROP22 ERTY PLACED IN SERVICE.— 

23 (1) IN GENERAL.—Paragraph (1) of section 

24 25D(b) is amended to read as follows: 


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1 ‘‘(1) MAXIMUM CREDIT FOR FUEL CELLS.—In 

2 the case of any qualified fuel cell property expendi3 ture, the credit allowed under subsection (a) (deter4 mined without regard to subsection (c)) for any tax5 able year shall not exceed $500 with respect to each 

6 half kilowatt of capacity of the qualified fuel cell 

7 property (as defined in section 48(c)(1)) to which 

8 such expenditure relates.’’. 

9 (2) CONFORMING AMENDMENT.—Paragraph (4) 

10 of section 25D(e) is amended— 

11 (A) by striking all that precedes subpara12 graph (B) and inserting the following: 

13 ‘‘(4) FUEL CELL EXPENDITURE LIMITATIONS

14 IN CASE OF JOINT OCCUPANCY.—In the case of any 

15 dwelling unit with respect to which qualified fuel cell 

16 property expenditures are made and which is jointly 

17 occupied and used during any calendar year as a 

18 residence by two or more individuals the following 

19 rules shall apply: 

20 ‘‘(A) MAXIMUM EXPENDITURES FOR FUEL

21 CELLS.—The maximum amount of such ex22 penditures which may be taken into account 

23 under subsection (a) by all such individuals 

24 with respect to such dwelling unit during such 

25 calendar year shall be $1,667 in the case of 


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1 each half kilowatt of capacity of qualified fuel 

2 cell property (as defined in section 48(c)(1)) 

3 with respect to which such expenditures re4 late.’’, and 

5 (B) by striking subparagraph (C). 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2008. 

9 SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTER10 NATIVE FUEL VEHICLE REFUELING PROP11 ERTY. 

12 (a) IN GENERAL.—Section 30C(e) is amended by 

13 adding at the end the following new paragraph: 

14 ‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN

15 SERVICE DURING 2009 AND 2010.—In the case of 

16 property placed in service in taxable years beginning 

17 after December 31, 2008, and before January 1, 

18 2011— 

19 ‘‘(A) in the case of any such property 

20 which does not relate to hydrogen— 

21 ‘‘(i) subsection (a) shall be applied by 

22 substituting ‘50 percent’ for ‘30 percent’, 

23 ‘‘(ii) subsection (b)(1) shall be applied 

24 by substituting ‘$50,000’ for ‘$30,000’, 

25 and 


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1 ‘‘(iii) subsection (b)(2) shall be ap2 plied by substituting ‘$2,000’ for ‘$1,000’, 

3 and 

4 ‘‘(B) in the case of any such property 

5 which relates to hydrogen, subsection (b)(1) 

6 shall be applied by substituting ‘$200,000’ for 

7 ‘$30,000’.’’. 

8 (b) ENSURING CONSUMER ACCESSIBILITY TO AL9 TERNATIVE FUEL VEHICLE REFUELING PROPERTY IN

10 THE CASE OF ELECTRICITY.—Section 179(d)(3) is 

11 amended by striking subparagraph (B) and inserting the 

12 following: 

13 ‘‘(B) for the recharging of motor vehicles 

14 propelled by electricity, but only if— 

15 ‘‘(i) the property complies with the 

16 Society of Automotive Engineers’ connec17 tion standards, 

18 ‘‘(ii) the property provides for non-re19 strictive access for charging and for pay20 ment interoperability with other systems, 

21 and 

22 ‘‘(iii) the property— 

23 ‘‘(I) is located on property owned 

24 by the taxpayer, or 


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1 ‘‘(II) is located on property 

2 owned by another person, is placed in 

3 service with the permission of such 

4 other person, and is fully maintained 

5 by the taxpayer.’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2008. 

9 SEC. 1124. RECOVERY PERIOD FOR DEPRECIATION OF 

10 SMART METERS. 

11 (a) TEMPORARY 5-YEAR RECOVERY PERIOD.— 

12 (1) IN GENERAL.—Subparagraph (B) of section 

13 168(e)(3) is amended by striking ‘‘and’’ at the end 

14 of clause (vi), by striking the period at the end of 

15 clause (vii) and inserting ‘‘, and’’, and by adding at 

16 the end the following new clause: 

17 ‘‘(viii) any qualified smart electric 

18 meter which is placed in service before 

19 January 1, 2011.’’. 

20 (2) CONFORMING AMENDMENT.—Clause (iii) of 

21 section 168(e)(3)(D) is amended by inserting ‘‘which 

22 is placed in service after December 31, 2010’’ after 

23 ‘‘electric meter’’. 


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1 (b) TECHNICAL AMENDMENTS.—Paragraphs 

2 (18)(A)(ii) and (19)(A)(ii) of section 168(i) are each 

3 amended by striking ‘‘16 years’’ and inserting ‘‘10 years’’. 

4 (c) EFFECTIVE DATES.— 

5 (1) IN GENERAL.—Except as provided in para6 graph (2), the amendments made by this section 

7 shall apply to property placed in service after the 

8 date of the enactment of this Act. 

9 (2) TECHNICAL AMENDMENT.—The amend10 ments made by subsection (b) shall take effect as if 

11 included in section 306 of the Energy Improvement 

12 and Extension Act of 2008. 

13 PART IV—ENERGY RESEARCH INCENTIVES 

14 SEC. 1131. INCREASED RESEARCH CREDIT FOR ENERGY RE15 SEARCH. 

16 (a) IN GENERAL.—Section 41 is amended by redesig17 nating subsection (h) as subsection (i) and by inserting 

18 after subsection (g) the following new subsection: 

19 ‘‘(h) ENERGY RESEARCH CREDIT.—In the case of 

20 any taxable year beginning in 2009 or 2010— 

21 ‘‘(1) IN GENERAL.—The credit determined 

22 under subsection (a)(1) shall be increased by 20 per23 cent of the qualified energy research expenses for 

24 the taxable year. 


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1 ‘‘(2) QUALIFIED ENERGY RESEARCH EX2 PENSES.—For purposes of this subsection— 

3 ‘‘(A) IN GENERAL.—The term ‘qualified 

4 energy research expenses’ means so much of the 

5 taxpayer’s qualified research expenses as are re6 lated to the fields of fuel cells and battery tech7 nology, renewable energy and renewable fuels, 

8 energy conservation technology, efficient trans9 mission and distribution of electricity, and car10 bon capture and sequestration. 

11 ‘‘(B) COORDINATION WITH QUALIFYING

12 ADVANCED ENERGY PROJECT CREDIT.—Such 

13 term shall not include expenditures taken into 

14 account in determining the amount of the credit 

15 under section 48 or 48C. 

16 ‘‘(3) COORDINATION WITH OTHER RESEARCH

17 CREDITS.— 

18 ‘‘(A) IN GENERAL.—The amount of quali19 fied energy research expenses taken into ac20 count under subsection (a)(1)(A) shall not ex21 ceed the base amount. 

22 ‘‘(B) ALTERNATIVE SIMPLIFIED CREDIT.— 

23 For purposes of subsection (c)(5), the amount 

24 of qualified energy research expenses taken into 


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1 account for the taxable year for which the cred2 it is being determined shall not exceed— 

3 ‘‘(i) in the case of subsection 

4 (c)(5)(A), 50 percent of the average quali5 fied research expenses for the 3 taxable 

6 years preceding the taxable year for which 

7 the credit is being determined, and 

8 ‘‘(ii) in the case of subsection 

9 (c)(5)(B)(ii), zero. 

10 ‘‘(C) BASIC RESEARCH AND ENERGY RE11 SEARCH CONSORTIUM PAYMENTS.—Any amount 

12 taken into account under paragraph (1) shall 

13 not be taken into account under paragraph (2) 

14 or (3) of subsection (a).’’. 

15 (b) CONFORMING AMENDMENT.—Subparagraph (B) 

16 of section 41(i)(1)(B), as redesignated by subsection (a), 

17 is amended by inserting ‘‘(in the case of the increase in 

18 the credit determined under subsection (h), December 31, 

19 2010)’’ after ‘‘December 31, 2009’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to taxable years beginning after 

22 December 31, 2008. 


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1 PART V—MODIFICATION OF CREDIT FOR 

2 CARBON DIOXIDE SEQUESTRATION 

3 SEC. 1141. APPLICATION OF MONITORING REQUIREMENTS 

4 TO CARBON DIOXIDE USED AS A TERTIARY 

5 INJECTANT. 

6 (a) IN GENERAL.—Section 45Q(a)(2) is amended by 

7 striking ‘‘and’’ at the end of subparagraph (A), by striking 

8 the period at the end of subparagraph (B) and inserting 

9 ‘‘, and’’, and by adding at the end the following new sub10 paragraph: 

11 ‘‘(C) disposed of by the taxpayer in secure 

12 geological storage.’’. 

13 (b) CONFORMING AMENDMENTS.— 

14 (1) Section 45Q(d)(2) is amended— 

15 (A) by striking ‘‘subsection (a)(1)(B)’’ and 

16 inserting ‘‘paragraph (1)(B) or (2)(C) of sub17 section (a)’’, 

18 (B) by striking ‘‘and unminable coal 

19 seems’’ and inserting ‘‘, oil and gas reservoirs, 

20 and unminable coal seams’’, and 

21 (C) by inserting ‘‘the Secretary of Energy, 

22 and the Secretary of the Interior,’’ after ‘‘Envi23 ronmental Protection Agency’’. 

24 (2) Section 45Q(e) is amended by striking 

25 ‘‘captured and disposed of or used as a tertiary 


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1 injectant’’ and inserting ‘‘taken into account in ac2 cordance with subsection (a)’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to carbon dioxide captured after 

5 the date of the enactment of this Act. 

6 PART VI—PLUG-IN ELECTRIC DRIVE MOTOR 

7 VEHICLES 

8 SEC. 1151. MODIFICATION OF CREDIT FOR QUALIFIED 

9 PLUG-IN ELECTRIC MOTOR VEHICLES. 

10 (a) INCREASE IN VEHICLES ELIGIBLE FOR CRED11 IT.—Section 30D(b)(2)(B) is amended by striking 

12 ‘‘250,000’’ and inserting ‘‘500,000’’. 

13 (b) EXCLUSION OF NEIGHBORHOOD ELECTRIC VEHI14 CLES FROM EXISTING CREDIT.—Section 30D(e)(1) is 

15 amended to read as follows: 

16 ‘‘(1) MOTOR VEHICLE.—The term ‘motor vehi17 cle’ means a motor vehicle (as defined in section 

18 30(c)(2)), which is treated as a motor vehicle for 

19 purposes of title II of the Clean Air Act.’’. 

20 (c) CREDIT FOR CERTAIN OTHER VEHICLES.—Sec21 tion 30D is amended— 

22 (1) by redesignating subsections (f) and (g) as 

23 subsections (g) and (h), respectively, and 

24 (2) by inserting after subsection (e) the fol25 lowing new subsection: 


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1 ‘‘(f) CREDIT FOR CERTAIN OTHER VEHICLES.—For 

2 purposes of this section— 

3 ‘‘(1) IN GENERAL.—In the case of a specified 

4 vehicle, this section shall be applied with the fol5 lowing modifications: 

6 ‘‘(A) For purposes of subsection (a)(1), in 

7 lieu of the applicable amount determined under 

8 subsection (a)(2), the applicable amount shall 

9 be 10 percent of so much of the cost of the 

10 specified vehicle as does not exceed $40,000. 

11 ‘‘(B) Subsection (b) shall not apply and no 

12 specified vehicle shall be taken into account 

13 under subsection (b)(2). 

14 ‘‘(C) In the case of a specified vehicle 

15 which is a 2-or 3-wheeled motor vehicle, sub16 section (c)(1) shall be applied by substituting 

17 ‘2.5 kilowatt hours’ for ‘4 kilowatt hours’. 

18 ‘‘(D) In the case of a specified vehicle 

19 which is a low-speed motor vehicle, subsection 

20 (c)(3) shall not apply. 

21 ‘‘(2) SPECIFIED VEHICLE.—For purposes of 

22 this subsection— 

23 ‘‘(A) IN GENERAL.—The term ‘specified 

24 vehicle’ means— 


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1 ‘‘(i) any 2- or 3- wheeled motor vehi2 cle, or 

3 ‘‘(ii) any low-speed motor vehicle, 

4 which is placed in service after December 31, 

5 2009, and before January 1, 2012. 

6 ‘‘(B) 2- OR 3-WHEELED MOTOR VEHI7 CLE.—The term ‘2- or 3-wheeled motor vehicle’ 

8 means any vehicle— 

9 ‘‘(i) which would be described in sec10 tion 30(c)(2) except that it has 2 or 3 

11 wheels, 

12 ‘‘(ii) with motive power having a seat 

13 or saddle for the use of the rider and de14 signed to travel on not more than 3 wheels 

15 in contact with the ground, 

16 ‘‘(iii) which has an electric motor that 

17 produces in excess of 5-brake horsepower, 

18 ‘‘(iv) which draws propulsion from 1 

19 or more traction batteries, and 

20 ‘‘(v) which has been certified to the 

21 Department of Transportation pursuant to 

22 section 567 of title 49, Code of Federal 

23 Regulations, as conforming to all applica24 ble Federal motor vehicle safety standards 


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1 in effect on the date of the manufacture of 

2 the vehicle. 

3 ‘‘(C) LOW-SPEED MOTOR VEHICLE.—The 

4 term ‘low-speed motor vehicle’ means a motor 

5 vehicle (as defined in section 30(c)(2)) which— 

6 ‘‘(i) is placed in service after Decem7 ber 31, 2009, and 

8 ‘‘(ii) meets the requirements of sec9 tion 571.500 of title 49, Code of Federal 

10 Regulations.’’. 

11 (d) EFFECTIVE DATES.— 

12 (1) IN GENERAL.—The amendment made by 

13 subsections (a) and (c) shall take effect on the date 

14 of the enactment of this Act. 

15 (2) OTHER MODIFICATIONS.—The amendments 

16 made by subsection (b) shall apply to property 

17 placed in service after December 31, 2009, in tax18 able years beginning after such date. 

19 SEC. 1152. CONVERSION KITS. 

20 (a) IN GENERAL.—Section 30B (relating to alter21 native motor vehicle credit) is amended by redesignating 

22 subsections (i) and (j) as subsections (j) and (k), respec23 tively, and by inserting after subsection (h) the following 

24 new subsection: 

25 ‘‘(i) PLUG-IN CONVERSION CREDIT.— 


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1 ‘‘(1) IN GENERAL.—For purposes of subsection 

2 (a), the plug-in conversion credit determined under 

3 this subsection with respect to any motor vehicle 

4 which is converted to a qualified plug-in electric 

5 drive motor vehicle is 10 percent of so much of the 

6 cost of the converting such vehicle as does not ex7 ceed $40,000. 

8 ‘‘(2) DEFINITIONS AND SPECIAL RULES.—For 

9 purposes of this subsection— 

10 ‘‘(A) QUALIFIED PLUG-IN ELECTRIC DRIVE

11 MOTOR VEHICLE.—The term ‘qualified plug-in 

12 electric drive motor vehicle’ means any new 

13 qualified plug-in electric drive motor vehicle (as 

14 defined in section 30D(c), determined without 

15 regard to paragraphs (4) and (6) thereof). 

16 ‘‘(B) PLUG-IN TRACTION BATTERY MOD17 ULE.—The term ‘plug-in traction battery mod18 ule’ means an electro-chemical energy storage 

19 device which— 

20 ‘‘(i) which has a traction battery ca21 pacity of not less than 2.5 kilowatt hours, 

22 ‘‘(ii) which is equipped with an elec23 trical plug by means of which it can be en24 ergized and recharged when plugged into 

25 an external source of electric power, 


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1 ‘‘(iii) which consists of a standardized 

2 configuration and is mass produced, 

3 ‘‘(iv) which has been tested and ap4 proved by the National Highway Transpor5 tation Safety Administration as compliant 

6 with applicable motor vehicle and motor 

7 vehicle equipment safety standards when 

8 installed by a mechanic with standardized 

9 training in protocols established by the 

10 battery manufacturer as part of a nation11 wide distribution program, 

12 ‘‘(v) which complies with the require13 ments of section 32918 of title 49, United 

14 States Code, and 

15 ‘‘(vi) which is certified by a battery 

16 manufacturer as meeting the requirements 

17 of clauses (i) through (v). 

18 ‘‘(C) CREDIT ALLOWED TO LESSOR OF

19 BATTERY MODULE.—In the case of a plug-in 

20 traction battery module which is leased to the 

21 taxpayer, the credit allowed under this sub22 section shall be allowed to the lessor of the 

23 plug-in traction battery module. 

24 ‘‘(D) CREDIT ALLOWED IN ADDITION TO

25 OTHER CREDITS.—The credit allowed under 


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1 this subsection shall be allowed with respect to 

2 a motor vehicle notwithstanding whether a cred3 it has been allowed with respect to such motor 

4 vehicle under this section (other than this sub5 section) in any preceding taxable year. 

6 ‘‘(3) TERMINATION.—This subsection shall not 

7 apply to conversions made after December 31, 

8 2012.’’. 

9 (b) CREDIT TREATED AS PART OF ALTERNATIVE

10 MOTOR VEHICLE CREDIT.—Section 30B(a) is amended 

11 by striking ‘‘and’’ at the end of paragraph (3), by striking 

12 the period at the end of paragraph (4) and inserting ‘‘, 

13 and’’, and by adding at the end the following new para14 graph: 

15 ‘‘(5) the plug-in conversion credit determined 

16 under subsection (i).’’. 

17 (c) NO RECAPTURE FOR VEHICLES CONVERTED TO

18 QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHI19 CLES.—Paragraph (8) of section 30B(h) is amended by 

20 adding at the end the following: ‘‘, except that no benefit 

21 shall be recaptured if such property ceases to be eligible 

22 for such credit by reason of conversion to a qualified plug23 in electric drive motor vehicle.’’. 

24 (d) EFFECTIVE DATE.—The amendments made by 

25 this section shall apply to property placed in service after 


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1 December 31, 2008, in taxable years beginning after such 

2 date. 

3 Subtitle C—Tax Incentives for 

4 Business 

5 PART I—TEMPORARY INVESTMENT INCENTIVES 

6 SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY 

7 ACQUIRED DURING 2009. 

8 (a) EXTENSION OF SPECIAL ALLOWANCE.— 

9 (1) IN GENERAL.—Paragraph (2) of section 

10 168(k) is amended— 

11 (A) by striking ‘‘January 1, 2010’’ and in12 serting ‘‘January 1, 2011’’, and 

13 (B) by striking ‘‘January 1, 2009’’ each 

14 place it appears and inserting ‘‘January 1, 

15 2010’’. 

16 (2) CONFORMING AMENDMENTS.— 

17 (A) The heading for subsection (k) of sec18 tion 168 is amended by striking ‘‘JANUARY 1, 

19 2009’’ and inserting ‘‘JANUARY 1, 2010’’. 

20 (B) The heading for clause (ii) of section 

21 168(k)(2)(B) is amended by striking ‘‘PRE-JAN22 UARY 1, 2009’’ and inserting ‘‘PRE-JANUARY 1, 

23 2010’’. 


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1 (C) Subparagraph (B) of section 168(l)(5) 

2 is amended by striking ‘‘January 1, 2009’’ and 

3 inserting ‘‘January 1, 2010’’. 

4 (D) Subparagraph (C) of section 168(n)(2) 

5 is amended by striking ‘‘January 1, 2009’’ and 

6 inserting ‘‘January 1, 2010’’. 

7 (E) Subparagraph (B) of section 

8 1400N(d)(3) is amended by striking ‘‘January 

9 1, 2009’’ and inserting ‘‘January 1, 2010’’. 

10 (3) TECHNICAL AMENDMENT.—Subparagraph 

11 (D) of section 168(k)(4) is amended— 

12 (A) by striking ‘‘and’’ at the end of clause 

13 (i), 

14 (B) by redesignating clause (ii) as clause 

15 (iii), and 

16 (C) by inserting after clause (i) the fol17 lowing new clause: 

18 ‘‘(ii) ‘April 1, 2008’ shall be sub19 stituted for ‘January 1, 2008’ in subpara20 graph (A)(iii)(I) thereof, and’’. 

21 (b) EXTENSION OF ELECTION TO ACCELERATE THE

22 AMT AND RESEARCH CREDITS IN LIEU OF BONUS DE23 PRECIATION.—Section 168(k)(4) (relating to election to 

24 accelerate the AMT and research credits in lieu of bonus 

25 depreciation) is amended— 


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1 (1) by striking ‘‘2009’’ and inserting ‘‘2010’’in 

2 subparagraph (D)(iii) (as redesignated by subsection 

3 (a)(3)), and 

4 (2) by adding at the end the following new sub5 paragraph: 

6 ‘‘(H) SPECIAL RULES FOR EXTENSION

7 PROPERTY.— 

8 ‘‘(i) TAXPAYERS PREVIOUSLY ELECT9 ING ACCELERATION.—In the case of a tax10 payer who made the election under sub11 paragraph (A) for its first taxable year 

12 ending after March 31, 2008— 

13 ‘‘(I) the taxpayer may elect not 

14 to have this paragraph apply to exten15 sion property, but 

16 ‘‘(II) if the taxpayer does not 

17 make the election under subclause (I), 

18 in applying this paragraph to the tax19 payer a separate bonus depreciation 

20 amount, maximum amount, and max21 imum increase amount shall be com22 puted and applied to eligible qualified 

23 property which is extension property 

24 and to eligible qualified property 

25 which is not extension property. 


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1 ‘‘(ii) TAXPAYERS NOT PREVIOUSLY

2 ELECTING ACCELERATION.—In the case of 

3 a taxpayer who did not make the election 

4 under subparagraph (A) for its first tax5 able year ending after March 31, 2008— 

6 ‘‘(I) the taxpayer may elect to 

7 have this paragraph apply to its first 

8 taxable year ending after December 

9 31, 2008, and each subsequent tax10 able year, and 

11 ‘‘(II) if the taxpayer makes the 

12 election under subclause (I), this 

13 paragraph shall only apply to eligible 

14 qualified property which is extension 

15 property. 

16 ‘‘(iii) EXTENSION PROPERTY.—For 

17 purposes of this subparagraph, the term 

18 ‘extension property’ means property which 

19 is eligible qualified property solely by rea20 son of the extension of the application of 

21 the special allowance under paragraph (1) 

22 pursuant to the amendments made by sec23 tion 1201(a) of the American Recovery and 

24 Reinvestment Tax Act of 2009 (and the 

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1 graph pursuant to the amendment made 

2 by section 1201(b)(1) of such Act).’’. 

3 (c) EFFECTIVE DATES.— 

4 (1) IN GENERAL.—Except as provided in para5 graph (2), the amendments made by this section 

6 shall apply to property placed in service after De7 cember 31, 2008, in taxable years ending after such 

8 date. 

9 (2) TECHNICAL AMENDMENT.—The amend10 ments made by subsection (a)(3) shall apply to tax11 able years ending after March 31, 2008. 

12 SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EX13 PENSING OF CERTAIN DEPRECIABLE BUSI14 NESS ASSETS. 

15 (a) IN GENERAL.—Paragraph (7) of section 179(b) 

16 is amended— 

17 (1) by striking ‘‘2008’’ and inserting ‘‘2008, or 

18 2009’’, and 

19 (2) by striking ‘‘2008’’ in the heading thereof 

20 and inserting ‘‘2008, AND 2009’’. 

21 (b) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 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 

11 elected the application of this subpara12 graph— 

13 ‘‘(I) subparagraph (A)(i) shall be 

14 applied by substituting any whole 

15 number elected by the taxpayer which 

16 is more than 2 and less than 6 for ‘2’, 

17 ‘‘(II) subparagraph (E)(ii) shall 

18 be applied by substituting the whole 

19 number which is one less than the 

20 whole number substituted under sub21 clause (II) for ‘2’, and 

22 ‘‘(III) subparagraph (F) shall not 

23 apply. 

24 ‘‘(ii) APPLICABLE 2008 OR 2009 NET

25 OPERATING LOSS.—For purposes of this 


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1 subparagraph, the term ‘applicable 2008 

2 or 2009 net operating loss’ means— 

3 ‘‘(I) the taxpayer’s net operating 

4 loss for any taxable year ending in 

5 2008 or 2009, or 

6 ‘‘(II) if the taxpayer elects to 

7 have this subclause apply in lieu of 

8 subclause (I), the taxpayer’s net oper9 ating loss for any taxable year begin10 ning in 2008 or 2009. 

11 ‘‘(iii) ELECTION.—Any election under 

12 this subparagraph shall be made in such 

13 manner as may be prescribed by the Sec14 retary, and shall be made by the due date 

15 (including extension of time) for filing the 

16 taxpayer’s return for the taxable year of 

17 the net operating loss. Any such election, 

18 once made, shall be irrevocable. 

19 ‘‘(iv) COORDINATION WITH ALTER20 NATIVE TAX NET OPERATING LOSS DEDUC21 TION.—In the case of a taxpayer who 

22 elects to have clause (ii)(II) apply, section 

23 56(d)(1)(A)(ii) shall be applied by sub24 stituting ‘ending during 2001 or 2002 or 


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1 beginning during 2008 or 2009’ for ‘end2 ing during 2001, 2002, 2008, or 2009’.’’. 

3 (b) ALTERNATIVE TAX NET OPERATING LOSS DE4 DUCTION.—Subclause (I) of section 56(d)(1)(A)(ii) is 

5 amended to read as follows: 

6 ‘‘(I) the amount of such deduc7 tion attributable to the sum of 

8 carrybacks of net operating losses 

9 from taxable years ending during 

10 2001, 2002, 2008, or 2009 and 

11 carryovers of net operating losses to 

12 such taxable years, or’’. 

13 (c) LOSS FROM OPERATIONS OF LIFE INSURANCE

14 COMPANIES.—Subsection (b) of section 810 is amended 

15 by adding at the end the following new paragraph: 

16 ‘‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES.— 

17 ‘‘(A) IN GENERAL.—In the case of an ap18 plicable 2008 or 2009 loss from operations with 

19 respect to which the taxpayer has elected the 

20 application of this paragraph, paragraph (1)(A) 

21 shall be applied, at the election of the taxpayer, 

22 by substituting ‘5’ or ‘4’ for ‘3’. 

23 ‘‘(B) APPLICABLE 2008 OR 2009 LOSS FROM

24 OPERATIONS.—For purposes of this paragraph, 


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1 the term ‘applicable 2008 or 2009 loss from op2 erations’ means— 

3 ‘‘(i) the taxpayer’s loss from oper4 ations for any taxable year ending in 2008 

5 or 2009, or 

6 ‘‘(ii) if the taxpayer elects to have this 

7 clause apply in lieu of clause (i), the tax8 payer’s loss from operations for any tax9 able year beginning in 2008 or 2009. 

10 ‘‘(C) ELECTION.—Any election under this 

11 paragraph shall be made in such manner as 

12 may be prescribed by the Secretary, and shall 

13 be made by the due date (including extension of 

14 time) for filing the taxpayer’s return for the 

15 taxable year of the loss from operations. Any 

16 such election, once made, shall be irrevocable. 

17 ‘‘(D) COORDINATION WITH ALTERNATIVE

18 TAX NET OPERATING LOSS DEDUCTION.—In the 

19 case of a taxpayer who elects to have subpara20 graph (B)(ii) apply, section 56(d)(1)(A)(ii) shall 

21 be applied by substituting ‘ending during 2001 

22 or 2002 or beginning during 2008 or 2009’ for 

23 ‘ending during 2001, 2002, 2008, or 2009’.’’. 


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1 (d) CONFORMING AMENDMENT.—Section 172 is 

2 amended by striking subsection (k) and by redesignating 

3 subsection (l) as subsection (k). 

4 (e) EFFECTIVE DATE.— 

5 (1) IN GENERAL.—Except as otherwise pro6 vided in this subsection, the amendments made by 

7 this section shall apply to net operating losses aris8 ing in taxable years ending after December 31, 

9 2007. 

10 (2) ALTERNATIVE TAX NET OPERATING LOSS

11 DEDUCTION.—The amendment made by subsection 

12 (b) shall apply to taxable years ending after 1997. 

13 (3) LOSS FROM OPERATIONS OF LIFE INSUR14 ANCE COMPANIES.—The amendment made by sub15 section (d) shall apply to losses from operations aris16 ing in taxable years ending after December 31, 

17 2007. 

18 (4) TRANSITIONAL RULE.—In the case of a net 

19 operating loss (or, in the case of a life insurance 

20 company, a loss from operations) for a taxable year 

21 ending before the date of the enactment of this 

22 Act— 

23 (A) any election made under section 

24 172(b)(3) or 810(b)(3) of the Internal Revenue 

25 Code of 1986 with respect to such loss may 


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1 (notwithstanding such section) be revoked be2 fore the applicable date, 

3 (B) any election made under section 

4 172(k) or 810(b)(4) of such Code with respect 

5 to such loss shall (notwithstanding such sec6 tion) be treated as timely made if made before 

7 the applicable date, and 

8 (C) any application under section 6411(a) 

9 of such Code with respect to such loss shall be 

10 treated as timely filed if filed before the appli11 cable date. 

12 For purposes of this paragraph, the term ‘‘applica13 ble date’’ means the date which is 60 days after the 

14 date of the enactment of this Act. 

15 SEC. 1212. EXCEPTION FOR TARP RECIPIENTS. 

16 The amendments made by this part shall not apply 

17 to— 

18 (1) any taxpayer if— 

19 (A) the Federal Government acquires, at 

20 any time, an equity interest in the taxpayer 

21 pursuant to the Emergency Economic Stabiliza22 tion Act of 2008, or 

23 (B) the Federal Government acquires, at 

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1 quire any equity interest with respect to the 

2 taxpayer pursuant to such Act, 

3 (2) the Federal National Mortgage Association 

4 and the Federal Home Loan Mortgage Corporation, 

5 and 

6 (3) any taxpayer which at any time in 2008 or 

7 2009 is a member of the same affiliated group (as 

8 defined in section 1504 of the Internal Revenue 

9 Code of 1986, determined without regard to sub10 section (b) thereof) as a taxpayer described in para11 graph (1) or (2). 

12 PART III—INCENTIVES FOR NEW JOBS 

13 SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS 

14 AND DISCONNECTED YOUTH. 

15 (a) IN GENERAL.—Subsection (d) of section 51 is 

16 amended by adding at the end the following new para17 graph: 

18 ‘‘(14) CREDIT ALLOWED FOR UNEMPLOYED

19 VETERANS AND DISCONNECTED YOUTH HIRED IN

20 2009 OR 2010.— 

21 ‘‘(A) IN GENERAL.—Any unemployed vet22 eran or disconnected youth who begins work for 

23 the employer during 2009 or 2010 shall be 

24 treated as a member of a targeted group for 

25 purposes of this subpart. 


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1 ‘‘(B) DEFINITIONS.—For purposes of this 

2 paragraph— 

3 ‘‘(i) UNEMPLOYED VETERAN.—The 

4 term ‘unemployed veteran’ means any vet5 eran (as defined in paragraph (3)(B), de6 termined without regard to clause (ii) 

7 thereof) who is certified by the designated 

8 local agency as— 

9 (I) having been discharged or re10 leased from active duty in the Armed 

11 Forces during the period beginning on 

12 September 1, 2001, and ending on 

13 December 31, 2010, and 

14 ‘‘(II) being in receipt of unem15 ployment compensation under State or 

16 Federal law for not less than 4 weeks 

17 during the 1-year period ending on 

18 the hiring date. 

19 ‘‘(ii) DISCONNECTED YOUTH.—The 

20 term ‘disconnected youth’ means any indi21 vidual who is certified by the designated 

22 local agency— 

23 ‘‘(I) as having attained age 16 

24 but not age 25 on the hiring date, 


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1 ‘‘(II) as not regularly attending 

2 any secondary, technical, or post-sec3 ondary school during the 6-month pe4 riod preceding the hiring date, 

5 ‘‘(III) as not regularly employed 

6 during such 6-month period, and 

7 ‘‘(IV) as not readily employable 

8 by reason of lacking a sufficient num9 ber of basic skills.’’. 

10 (b) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to individuals who begin work for 

12 the employer after December 31, 2008. 

13 PART IV—CANCELLATION OF INDEBTEDNESS 

14 SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF IN15 COME ARISING FROM INDEBTEDNESS DIS16 CHARGED BY THE REPURCHASE OF A DEBT 

17 INSTRUMENT. 

18 (a) IN GENERAL.—Section 108 (relating to income 

19 from discharge of indebtedness) is amended by adding at 

20 the end the following new subsection: 

21 ‘‘(i) DEFERRAL AND RATABLE INCLUSION OF IN22 COME ARISING FROM INDEBTEDNESS DISCHARGED BY

23 THE REPURCHASE OF A DEBT INSTRUMENT.— 

24 ‘‘(1) IN GENERAL.—Notwithstanding section 

25 61, income from the discharge of indebtedness in 


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1 connection with the repurchase of a debt instrument 

2 after December 31, 2008, and before January 1, 

3 2011, shall be includible in gross income ratably 

4 over the 8-taxable-year period beginning with— 

5 ‘‘(A) in the case of a repurchase occurring 

6 in 2009, the second taxable year following the 

7 taxable year in which the repurchase occurs, 

8 and 

9 ‘‘(B) in the case of a repurchase occurring 

10 in 2010, the taxable year following the taxable 

11 year in which the repurchase occurs. 

12 ‘‘(2) DEBT INSTRUMENT.—For purposes of this 

13 subsection, the term ‘debt instrument’ means a 

14 bond, debenture, note, certificate, or any other in15 strument or contractual arrangement constituting 

16 indebtedness (within the meaning of section 

17 1275(a)(1)). 

18 ‘‘(3) REPURCHASE.—For purposes of this sub19 section, the term ‘repurchase’ means, with respect to 

20 any debt instrument, a cash purchase of the debt in21 strument by— 

22 ‘‘(A) the debtor which issued the debt in23 strument, or 

24 ‘‘(B) any person related to such debtor. 


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1 For purposes of subparagraph (B), the determina2 tion of whether a person is related to another person 

3 shall be made in the same manner as under sub4 section (e)(4). 

5 ‘‘(4) AUTHORITY TO PRESCRIBE REGULA6 TIONS.—The Secretary may prescribe such regula7 tions as may be necessary or appropriate for pur8 poses of applying this subsection.’’. 

9 (b) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to discharges in taxable years end11 ing after December 31, 2008. 

12 PART V—QUALIFIED SMALL BUSINESS STOCK 

13 SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED 

14 SMALL BUSINESS STOCK FOR 2009 AND 2010. 

15 (a) IN GENERAL.—Section 1202(a) is amended by 

16 adding at the end the following new paragraph: 

17 ‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 

18 the case of qualified small business stock acquired 

19 after the date of the enactment of this paragraph 

20 and before January 1, 2011— 

21 ‘‘(A) paragraph (1) shall be applied by 

22 substituting ‘75 percent’ for ‘50 percent’, and 

23 ‘‘(B) paragraph (2) shall not apply.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to stock acquired after the date 

3 of the enactment of this Act. 

4 PART VI—PARITY FOR TRANSPORTATION 

5 FRINGE BENEFITS 

6 SEC. 1251. INCREASED EXCLUSION AMOUNT FOR COM7 MUTER TRANSIT BENEFITS AND TRANSIT 

8 PASSES. 

9 (a) IN GENERAL.—Paragraph (2) of section 132(f) 

10 is amended by adding at the end the following flush sen11 tence: 

12 ‘‘In the case of any month beginning on or after the 

13 date of the enactment of this sentence and before 

14 January 1, 2011, subparagraph (A) shall be applied 

15 as if the dollar amount therein were the same as the 

16 dollar amount under subparagraph (B) (as in effect 

17 for such month).’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall apply to months beginning on or after 

20 the date of the enactment of this section. 


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1 PART VII—S CORPORATIONS 

2 SEC. 1261. TEMPORARY REDUCTION IN RECOGNITION PE3 RIOD FOR BUILT-IN GAINS TAX. 

4 (a) IN GENERAL.—Paragraph (7) of section 1374(d) 

5 (relating to definitions and special rules) is amended to 

6 read as follows: 

7 ‘‘(7) RECOGNITION PERIOD.— 

8 ‘‘(A) IN GENERAL.—The term ‘recognition 

9 period’ means the 10-year period beginning 

10 with the 1st day of the 1st taxable year for 

11 which the corporation was an S corporation. 

12 ‘‘(B) SPECIAL RULE FOR 2009 AND 2010.— 

13 In the case of any taxable year beginning in 

14 2009 or 2010, no tax shall be imposed on the 

15 net unrecognized built-in gain of an S corpora16 tion if the 7th taxable year in the recognition 

17 period preceded such taxable year. The pre18 ceding sentence shall be applied separately with 

19 respect to any asset to which paragraph (8) ap20 plies. 

21 ‘‘(C) SPECIAL RULE FOR DISTRIBUTIONS

22 TO SHAREHOLDERS.—For purposes of applying 

23 this section to any amount includible in income 

24 by reason of distributions to shareholders pur25 suant to section 593(e)— 


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1 ‘‘(i) subparagraph (A) shall be applied 

2 without regard to the phrase ‘10-year’, and 

3 ‘‘(ii) subparagraph (B) shall not 

4 apply.’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2008. 

8 PART VIII—BROADBAND INCENTIVES 

9 SEC. 1271. BROADBAND INTERNET ACCESS TAX CREDIT. 

10 (a) IN GENERAL.—Subpart E of part IV of chapter 

11 1 of the Internal Revenue Code of 1986 (relating to rules 

12 for computing investment credit), as amended by this Act, 

13 is amended by inserting after section 48C the following 

14 new section: 

15 ‘‘SEC. 48D. BROADBAND INTERNET ACCESS CREDIT. 

16 ‘‘(a) GENERAL RULE.—For purposes of section 46, 

17 the broadband credit for any taxable year is the sum of— 

18 ‘‘(1) the current generation broadband credit, 

19 plus 

20 ‘‘(2) the next generation broadband credit. 

21 ‘‘(b) CURRENT GENERATION BROADBAND CREDIT; 

22 NEXT GENERATION BROADBAND CREDIT.—For purposes 

23 of this section— 

24 ‘‘(1) CURRENT GENERATION BROADBAND

25 CREDIT.—The current generation broadband credit 


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1 for any taxable year is equal to 10 percent (20 per2 cent in the case of qualified subscribers which are 

3 unserved subscribers) of the qualified broadband ex4 penditures incurred with respect to qualified equip5 ment providing current generation broadband serv6 ices to qualified subscribers and taken into account 

7 with respect to such taxable year. 

8 ‘‘(2) NEXT GENERATION BROADBAND CRED9 IT.—The next generation broadband credit for any 

10 taxable year is equal to 20 percent of the qualified 

11 broadband expenditures incurred with respect to 

12 qualified equipment providing next generation 

13 broadband services to qualified subscribers and 

14 taken into account with respect to such taxable year. 

15 ‘‘(c) WHEN EXPENDITURES TAKEN INTO AC16 COUNT.—For purposes of this section— 

17 ‘‘(1) IN GENERAL.—Qualified broadband ex18 penditures with respect to qualified equipment shall 

19 be taken into account with respect to the first tax20 able year in which— 

21 ‘‘(A) current generation broadband services 

22 are provided through such equipment to quali23 fied subscribers, or 


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AMDT. NO. 570 

1 ‘‘(B) next generation broadband services 

2 are provided through such equipment to quali3 fied subscribers. 

4 ‘‘(2) LIMITATION.— 

5 ‘‘(A) IN GENERAL.—Qualified broadband 

6 expenditures shall be taken into account under 

7 paragraph (1) only with respect to qualified 

8 equipment— 

9 ‘‘(i) the original use of which com10 mences with the taxpayer, and 

11 ‘‘(ii) which is placed in service, after 

12 December 31, 2008, and before January 1, 

13 2011. 

14 ‘‘(B) SALE-LEASEBACKS.—For purposes of 

15 subparagraph (A), if property— 

16 ‘‘(i) is originally placed in service 

17 after December 31, 2008, by any person, 

18 and 

19 ‘‘(ii) sold and leased back by such per20 son within 3 months after the date such 

21 property was originally placed in service, 

22 such property shall be treated as originally 

23 placed in service not earlier than the date on 

24 which such property is used under the leaseback 

25 referred to in clause (ii). 


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1 ‘‘(d) SPECIAL ALLOCATION RULES FOR CURRENT

2 GENERATION BROADBAND SERVICES.—For purposes of 

3 determining the current generation broadband credit 

4 under subsection (a)(1) with respect to qualified equip5 ment through which current generation broadband serv6 ices are provided, if the qualified equipment is capable of 

7 serving both qualified subscribers and other subscribers, 

8 the qualified broadband expenditures shall be multiplied 

9 by a fraction— 

10 ‘‘(1) the numerator of which is the sum of the 

11 number of potential qualified subscribers within the 

12 rural areas and the underserved areas and the 

13 unserved areas which the equipment is capable of 

14 serving with current generation broadband services, 

15 and 

16 ‘‘(2) the denominator of which is the total po17 tential subscriber population of the area which the 

18 equipment is capable of serving with current genera19 tion broadband services. 

20 ‘‘(e) DEFINITIONS.—For purposes of this section— 

21 ‘‘(1) ANTENNA.—The term ‘antenna’ means 

22 any device used to transmit or receive signals 

23 through the electromagnetic spectrum, including sat24 ellite equipment. 


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1 ‘‘(2) CABLE OPERATOR.—The term ‘cable oper2 ator’ has the meaning given such term by section 

3 602(5) of the Communications Act of 1934 (47 

4 U.S.C. 522(5)). 

5 ‘‘(3) COMMERCIAL MOBILE SERVICE CAR6 RIER.—The term ‘commercial mobile service carrier’ 

7 means any person authorized to provide commercial 

8 mobile radio service as defined in section 20.3 of 

9 title 47, Code of Federal Regulations. 

10 ‘‘(4) CURRENT GENERATION BROADBAND SERV11 ICE.—The term ‘current generation broadband serv12 ice’ means the transmission of signals at a rate of 

13 at least 5,000,000 bits per second to the subscriber 

14 and at least 1,000,000 bits per second from the sub15 scriber (at least 3,000,000 bits per second to the 

16 subscriber and at least 768,000 bits per second from 

17 the subscriber in the case of service through radio 

18 transmission of energy). 

19 ‘‘(5) MULTIPLEXING OR DEMULTIPLEXING.— 

20 The term ‘multiplexing’ means the transmission of 2 

21 or more signals over a single channel, and the term 

22 ‘demultiplexing’ means the separation of 2 or more 

23 signals previously combined by compatible multi24 plexing equipment. 


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1 ‘‘(6) NEXT GENERATION BROADBAND SERV2 ICE.—The term ‘next generation broadband service’ 

3 means the transmission of signals at a rate of at 

4 least 100,000,000 bits per second to the subscriber 

5 (or its equivalent when the data rate is measured be6 fore being compressed for transmission) and at least 

7 20,000,000 bits per second from the subscriber (or 

8 its equivalent as so measured). 

9 ‘‘(7) NONRESIDENTIAL SUBSCRIBER.—The 

10 term ‘nonresidential subscriber’ means any person 

11 who purchases broadband services which are deliv12 ered to the permanent place of business of such per13 son. 

14 ‘‘(8) OPEN VIDEO SYSTEM OPERATOR.—The 

15 term ‘open video system operator’ means any person 

16 authorized to provide service under section 653 of 

17 the Communications Act of 1934 (47 U.S.C. 573). 

18 ‘‘(9) OTHER WIRELESS CARRIER.—The term 

19 ‘other wireless carrier’ means any person (other than 

20 a telecommunications carrier, commercial mobile 

21 service carrier, cable operator, open video system op22 erator, or satellite carrier) providing current genera23 tion broadband services or next generation 

24 broadband service to subscribers through the radio 

25 transmission of energy. 


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1 ‘‘(10) PACKET SWITCHING.—The term ‘packet 

2 switching’ means controlling or routing the path of 

3 a digitized transmission signal which is assembled 

4 into packets or cells. 

5 ‘‘(11) PROVIDER.—The term ‘provider’ means, 

6 with respect to any qualified equipment any— 

7 ‘‘(A) cable operator, 

8 ‘‘(B) commercial mobile service carrier, 

9 ‘‘(C) open video system operator, 

10 ‘‘(D) satellite carrier, 

11 ‘‘(E) telecommunications carrier, or 

12 ‘‘(F) other wireless carrier, 

13 providing current generation broadband services or 

14 next generation broadband services to subscribers 

15 through such qualified equipment. 

16 ‘‘(12) PROVISION OF SERVICES.—A provider 

17 shall be treated as providing services to 1 or more 

18 subscribers if— 

19 ‘‘(A) such a subscriber has been passed by 

20 the provider’s equipment and can be connected 

21 to such equipment for a standard connection 

22 fee, 

23 ‘‘(B) the provider is physically able to de24 liver current generation broadband services or 

25 next generation broadband services, as applicaVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00504 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ble, to such a subscriber without making more 

2 than an insignificant investment with respect to 

3 such subscriber, 

4 ‘‘(C) the provider has made reasonable ef5 forts to make such subscribers aware of the 

6 availability of such services, 

7 ‘‘(D) such services have been purchased by 

8 1 or more such subscribers, and 

9 ‘‘(E) such services are made available to 

10 such subscribers at average prices comparable 

11 to those at which the provider makes available 

12 similar services in any areas in which the pro13 vider makes available such services. 

14 ‘‘(13) QUALIFIED EQUIPMENT.— 

15 ‘‘(A) IN GENERAL.—The term ‘qualified 

16 equipment’ means property with respect to 

17 which depreciation (or amortization in lieu of 

18 depreciation) is allowable and which provides 

19 current generation broadband services or next 

20 generation broadband services— 

21 ‘‘(i) at least a majority of the time 

22 during periods of maximum demand to 

23 each subscriber who is utilizing such serv24 ices, and 


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1 ‘‘(ii) in a manner substantially the 

2 same as such services are provided by the 

3 provider to subscribers through equipment 

4 with respect to which no credit is allowed 

5 under subsection (a)(1). 

6 ‘‘(B) ONLY CERTAIN INVESTMENT TAKEN

7 INTO ACCOUNT.—Except as provided in sub8 paragraph (C) or (D), equipment shall be taken 

9 into account under subparagraph (A) only to 

10 the extent it— 

11 ‘‘(i) extends from the last point of 

12 switching to the outside of the unit, build13 ing, dwelling, or office owned or leased by 

14 a subscriber in the case of a telecommuni15 cations carrier or broadband-over-powerline 

16 operator, 

17 ‘‘(ii) extends from the customer side 

18 of the mobile telephone switching office to 

19 a transmission/receive antenna (including 

20 such antenna) owned or leased by a sub21 scriber in the case of a commercial mobile 

22 service carrier, 

23 ‘‘(iii) extends from the customer side 

24 of the headend to the outside of the unit, 

25 building, dwelling, or office owned or 


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AMDT. NO. 570 

1 leased by a subscriber in the case of a 

2 cable operator or open video system oper3 ator, or 

4 ‘‘(iv) extends from a transmission/re5 ceive antenna (including such antenna) 

6 which transmits and receives signals to or 

7 from multiple subscribers, to a trans8 mission/receive antenna (including such 

9 antenna) on the outside of the unit, build10 ing, dwelling, or office owned or leased by 

11 a subscriber in the case of a satellite car12 rier or other wireless carrier, unless such 

13 other wireless carrier is also a tele14 communications carrier. 

15 ‘‘(C) PACKET SWITCHING EQUIPMENT.— 

16 Packet switching equipment, regardless of loca17 tion, shall be taken into account under subpara18 graph (A) only if it is deployed in connection 

19 with equipment described in subparagraph (B) 

20 and is uniquely designed to perform the func21 tion of packet switching for current generation 

22 broadband services or next generation 

23 broadband services, but only if such packet 

24 switching is the last in a series of such func25 tions performed in the transmission of a signal 


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1 to a subscriber or the first in a series of such 

2 functions performed in the transmission of a 

3 signal from a subscriber. 

4 ‘‘(D) MULTIPLEXING AND

5 DEMULTIPLEXING EQUIPMENT.—Multiplexing 

6 and demultiplexing equipment shall be taken 

7 into account under subparagraph (A) only to 

8 the extent it is deployed in connection with 

9 equipment described in subparagraph (B) and 

10 is uniquely designed to perform the function of 

11 multiplexing and demultiplexing packets or cells 

12 of data and making associated application 

13 adaptions, but only if such multiplexing or 

14 demultiplexing equipment is located between 

15 packet switching equipment described in sub16 paragraph (C) and the subscriber’s premises. 

17 ‘‘(14) QUALIFIED BROADBAND EXPENDI18 TURE.— 

19 ‘‘(A) IN GENERAL.—The term ‘qualified 

20 broadband expenditure’ means any amount— 

21 ‘‘(i) chargeable to capital account with 

22 respect to the purchase and installation of 

23 qualified equipment (including any up24 grades thereto) for which depreciation is 

25 allowable under section 168, and 


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1 ‘‘(ii) incurred after December 31, 

2 2008, and before January 1, 2011. 

3 ‘‘(B) CERTAIN SATELLITE EXPENDITURES

4 EXCLUDED.—Such term shall not include any 

5 expenditure with respect to the launching of 

6 any satellite equipment. 

7 ‘‘(C) LEASED EQUIPMENT.—Such term 

8 shall include so much of the purchase price paid 

9 by the lessor of equipment subject to a lease de10 scribed in subsection (c)(2)(B) as is attrib11 utable to expenditures incurred by the lessee 

12 which would otherwise be described in subpara13 graph (A). 

14 ‘‘(15) QUALIFIED SUBSCRIBER.—The term 

15 ‘qualified subscriber’ means— 

16 ‘‘(A) with respect to the provision of cur17 rent generation broadband services— 

18 ‘‘(i) any nonresidential subscriber 

19 maintaining a permanent place of business 

20 in a rural area, an underserved area, or an 

21 unserved area, or 

22 ‘‘(ii) any residential subscriber resid23 ing in a dwelling located in a rural area, 

24 an underserved area, or an unserved area 

25 which is not a saturated market, and 


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1 ‘‘(B) with respect to the provision of next 

2 generation broadband services— 

3 ‘‘(i) any nonresidential subscriber 

4 maintaining a permanent place of business 

5 in a rural area, an underserved area, or an 

6 unserved area , or 

7 ‘‘(ii) any residential subscriber. 

8 ‘‘(16) RESIDENTIAL SUBSCRIBER.—The term 

9 ‘residential subscriber’ means any individual who 

10 purchases broadband services which are delivered to 

11 such individual’s dwelling. 

12 ‘‘(17) RURAL AREA.—The term ‘rural area’ 

13 means any census tract which— 

14 ‘‘(A) is not within 10 miles of any incor15 porated or census designated place containing 

16 more than 25,000 people, and 

17 ‘‘(B) is not within a county or county 

18 equivalent which has an overall population den19 sity of more than 500 people per square mile of 

20 land. 

21 ‘‘(18) RURAL SUBSCRIBER.—The term ‘rural 

22 subscriber’ means any residential subscriber residing 

23 in a dwelling located in a rural area or nonresiden24 tial subscriber maintaining a permanent place of 

25 business located in a rural area. 


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1 ‘‘(19) SATELLITE CARRIER.—The term ‘sat2 ellite carrier’ means any person using the facilities 

3 of a satellite or satellite service licensed by the Fed4 eral Communications Commission and operating in 

5 the Fixed-Satellite Service under part 25 of title 47 

6 of the Code of Federal Regulations or the Direct 

7 Broadcast Satellite Service under part 100 of title 

8 47 of such Code to establish and operate a channel 

9 of communications for distribution of signals, and 

10 owning or leasing a capacity or service on a satellite 

11 in order to provide such point-to-multipoint distribu12 tion. 

13 ‘‘(20) SATURATED MARKET.—The term ‘satu14 rated market’ means any census tract in which, as 

15 of the date of the enactment of this section— 

16 ‘‘(A) current generation broadband services 

17 have been provided by a single provider to 85 

18 percent or more of the total number of potential 

19 residential subscribers residing in dwellings lo20 cated within such census tract, and 

21 ‘‘(B) such services can be utilized— 

22 ‘‘(i) at least a majority of the time 

23 during periods of maximum demand by 

24 each such subscriber who is utilizing such 

25 services, and 


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1 ‘‘(ii) in a manner substantially the 

2 same as such services are provided by the 

3 provider to subscribers through equipment 

4 with respect to which no credit is allowed 

5 under subsection (a)(1). 

6 ‘‘(21) SUBSCRIBER.—The term ‘subscriber’ 

7 means any person who purchases current generation 

8 broadband services or next generation broadband 

9 services. 

10 ‘‘(22) TELECOMMUNICATIONS CARRIER.—The 

11 term ‘telecommunications carrier’ has the meaning 

12 given such term by section 3(44) of the Communica13 tions Act of 1934 (47 U.S.C. 153(44)), but— 

14 ‘‘(A) includes all members of an affiliated 

15 group of which a telecommunications carrier is 

16 a member, and 

17 ‘‘(B) does not include any commercial mo18 bile service carrier. 

19 ‘‘(23) TOTAL POTENTIAL SUBSCRIBER POPU20 LATION.—The term ‘total potential subscriber popu21 lation’ means, with respect to any area and based on 

22 the most recent census data, the total number of po23 tential residential subscribers residing in dwellings 

24 located in such area and potential nonresidential 


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1 subscribers maintaining permanent places of busi2 ness located in such area. 

3 ‘‘(24) UNDERSERVED AREA.—The term ‘under4 served area’ means any census tract which is located 

5 in— 

6 ‘‘(A) an empowerment zone or enterprise 

7 community designated under section 1391, 

8 ‘‘(B) the District of Columbia Enterprise 

9 Zone established under section 1400, 

10 ‘‘(C) a renewal community designated 

11 under section 1400E, or 

12 ‘‘(D) a low-income community designated 

13 under section 45D. 

14 ‘‘(25) UNDERSERVED SUBSCRIBER.—The term 

15 ‘underserved subscriber’ means any residential sub16 scriber residing in a dwelling located in an under17 served area or nonresidential subscriber maintaining 

18 a permanent place of business located in an under19 served area. 

20 ‘‘(26) UNSERVED AREA.—The term ‘unserved 

21 area’ means any census tract in which no current 

22 generation broadband services are provided, as cer23 tified by the State in which such tract is located not 

24 later than September 30, 2009. 


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1 ‘‘(27) UNSERVED SUBSCRIBER.—The term 

2 ‘unserved subscriber’ means any residential sub3 scriber residing in a dwelling located in an unserved 

4 area or nonresidential subscriber maintaining a per5 manent place of business located in an unserved 

6 area.’’. 

7 (b) CREDIT TO BE PART OF INVESTMENT CREDIT.— 

8 Section 46 (relating to the amount of investment credit), 

9 as amended by this Act, is amended by striking ‘‘and’’ 

10 at the end of paragraph (4), by striking the period at the 

11 end of paragraph (5) and inserting ‘‘, and’’, and by adding 

12 at the end the following: 

13 ‘‘(6) the broadband Internet access credit.’’ 

14 (c) SPECIAL RULE FOR MUTUAL OR COOPERATIVE

15 TELEPHONE COMPANIES.—Section 501(c)(12)(B) (relat16 ing to list of exempt organizations) is amended by striking 

17 ‘‘or’’ at the end of clause (iii), by striking the period at 

18 the end of clause (iv) and inserting ‘‘, or’’, and by adding 

19 at the end the following new clause: 

20 ‘‘(v) from the sale of property subject 

21 to a lease described in section 

22 48D(c)(2)(B), but only to the extent such 

23 income does not in any year exceed an 

24 amount equal to the credit for qualified 

25 broadband expenditures which would be 


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1 determined under section 48D for such 

2 year if the mutual or cooperative telephone 

3 company was not exempt from taxation 

4 and was treated as the owner of the prop5 erty subject to such lease.’’. 

6 (d) CONFORMING AMENDMENTS.— 

7 (1) Section 49(a)(1)(C), as amended by this 

8 Act, is amended by striking ‘‘and’’ at the end of 

9 clause (iv), by striking the period at the end of 

10 clause (v) and inserting ‘‘, and’’, and by adding after 

11 clause (v) the following new clause: 

12 ‘‘(vi) the portion of the basis of any 

13 qualified equipment attributable to quali14 fied broadband expenditures under section 

15 48D.’’. 

16 (2) The table of sections for subpart E of part 

17 IV of subchapter A of chapter 1, as amended by this 

18 Act, is amended by inserting after the item relating 

19 to section 48C the following: 

‘‘Sec. 48D. Broadband internet access credit’’. 

20 (e) DESIGNATION OF CENSUS TRACTS.— 

21 (1) IN GENERAL.—The Secretary of the Treas22 ury shall, not later than 90 days after the date of 

23 the enactment of this Act, designate and publish 

24 those census tracts meeting the criteria described in 

25 paragraphs (17), (23), (24), and (26) of section 


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1 48D(e) of the Internal Revenue Code of 1986 (as 

2 added by this section). In making such designations, 

3 the Secretary of the Treasury shall consult with 

4 such other departments and agencies as the Sec5 retary determines appropriate. 

6 (2) SATURATED MARKET.— 

7 (A) IN GENERAL.—For purposes of desig8 nating and publishing those census tracts meet9 ing the criteria described in subsection (e)(20) 

10 of such section 48D— 

11 (i) the Secretary of the Treasury shall 

12 prescribe not later than 30 days after the 

13 date of the enactment of this Act the form 

14 upon which any provider which takes the 

15 position that it meets such criteria with re16 spect to any census tract shall submit a 

17 list of such census tracts (and any other 

18 information required by the Secretary) not 

19 later than 60 days after the date of the 

20 publication of such form, and 

21 (ii) the Secretary of the Treasury 

22 shall publish an aggregate list of such cen23 sus tracts submitted and the applicable 

24 providers not later than 30 days after the 


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1 last date such submissions are allowed 

2 under clause (i). 

3 (B) NO SUBSEQUENT LISTS REQUIRED.— 

4 The Secretary of the Treasury shall not be re5 quired to publish any list of census tracts meet6 ing such criteria subsequent to the list de7 scribed in subparagraph (A)(ii). 

8 (C) AUTHORITY TO DISREGARD FALSE

9 SUBMISSIONS.—In addition to imposing any 

10 other applicable penalties, the Secretary of the 

11 Treasury shall have the discretion to disregard 

12 any form described in subparagraph (A)(i) on 

13 which a provider knowingly submitted false in14 formation. 

15 (f) OTHER REGULATORY MATTERS.— 

16 (1) PROHIBITION.—No Federal or State agency 

17 or instrumentality shall adopt regulations or rate18 making procedures that would have the effect of 

19 eliminating or reducing any credit or portion thereof 

20 allowed under section 48D of the Internal Revenue 

21 Code of 1986 (as added by this section) or otherwise 

22 subverting the purpose of this section. 

23 (2) TREASURY REGULATORY AUTHORITY.—It is 

24 the intent of Congress in providing the broadband 

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1 ternal Revenue Code of 1986 (as added by this sec2 tion) to provide incentives for the purchase, installa3 tion, and connection of equipment and facilities of4 fering expanded broadband access to the Internet for 

5 users in certain low income and rural areas of the 

6 United States, as well as to residential users nation7 wide, in a manner that maintains competitive neu8 trality among the various classes of providers of 

9 broadband services. Accordingly, the Secretary of 

10 the Treasury shall prescribe such regulations as may 

11 be necessary or appropriate to carry out the pur12 poses of section 48D of such Code, including— 

13 (A) regulations to determine how and when 

14 a taxpayer that incurs qualified broadband ex15 penditures satisfies the requirements of section 

16 48D of such Code to provide broadband serv17 ices, and 

18 (B) regulations describing the information, 

19 records, and data taxpayers are required to pro20 vide the Secretary to substantiate compliance 

21 with the requirements of section 48D of such 

22 Code. 

23 (g) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to expenditures incurred after De25 cember 31, 2008. 


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1 PART IX—CLARIFICATION OF REGULATIONS RE2 LATED TO LIMITATIONS ON CERTAIN BUILT3 IN LOSSES FOLLOWING AN OWNERSHIP 

4 CHANGE 

5 SEC. 1281. 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 D—Manufacturing 

6 Recovery Provisions 

7 SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF 

8 INDUSTRIAL DEVELOPMENT BONDS TO FA9 CILITIES MANUFACTURING INTANGIBLE 

10 PROPERTY. 

11 (a) IN GENERAL.—Subparagraph (C) of section 

12 144(a)(12) is amended— 

13 (1) by striking ‘‘For purposes of this para14 graph, the term’’ and inserting ‘‘For purposes of 

15 this paragraph— 

16 ‘‘(i) IN GENERAL.—The term’’, and 

17 (2) by striking the last sentence and inserting 

18 the following new clauses: 

19 ‘‘(ii) CERTAIN FACILITIES IN20 CLUDED.—Such term includes facilities 

21 which are directly related and ancillary to 

22 a manufacturing facility (determined with23 out regard to this clause) if— 


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1 ‘‘(I) such facilities are located on 

2 the same site as the manufacturing 

3 facility, and 

4 ‘‘(II) not more than 25 percent 

5 of the net proceeds of the issue are 

6 used to 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 

13 be used to provide a manufacturing facility 

14 if such proceeds are used to provide— 

15 ‘‘(I) a facility which is used in 

16 the creation or production of intan17 gible property which is described in 

18 section 197(d)(1)(C)(iii), or 

19 ‘‘(II) a facility which is function20 ally related and subordinate to a man21 ufacturing facility (determined with22 out regard to this subclause) if such 

23 facility is located on the same site as 

24 the manufacturing facility.’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to bonds issued after the date of 

3 the enactment 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 para10 graph: 

11 ‘‘(5) the qualifying advanced energy project 

12 credit.’’. 

13 (b) AMOUNT OF CREDIT.—Subpart E of part IV of 

14 subchapter A of chapter 1 (relating to rules for computing 

15 investment credit) is amended by inserting after section 

16 48B the following new section: 

17 ‘‘SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT 

18 CREDIT. 

19 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

20 qualifying advanced energy project credit for any taxable 

21 year is an amount equal to 30 percent of the qualified 

22 investment for such taxable year with respect to any quali23 fying advanced energy project of the taxpayer. 

24 ‘‘(b) QUALIFIED INVESTMENT.— 


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1 ‘‘(1) IN GENERAL.—For purposes of subsection 

2 (a), the qualified investment for any taxable year is 

3 the basis of eligible property placed in service by the 

4 taxpayer during such taxable year which is part of 

5 a qualifying advanced energy project— 

6 ‘‘(A)(i) the construction, reconstruction, or 

7 erection of which is completed by the taxpayer 

8 after October 31, 2008, or 

9 ‘‘(ii) which is acquired by the taxpayer if 

10 the original use of such eligible property com11 mences with the taxpayer after October 31, 

12 2008, and 

13 ‘‘(B) with respect to which depreciation (or 

14 amortization in lieu of depreciation) is allow15 able. 

16 ‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI17 TURES RULES MADE APPLICABLE.—Rules similar to 

18 the rules of subsections (c)(4) and (d) of section 46 

19 (as in effect on the day before the enactment of the 

20 Revenue Reconciliation Act of 1990) shall apply for 

21 purposes of this section. 

22 ‘‘(3) LIMITATION.—The amount which is treat23 ed for all taxable years with respect to any quali24 fying advanced energy project shall not exceed the 


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1 amount designated by the Secretary as eligible for 

2 the credit under this section. 

3 ‘‘(c) DEFINITIONS.— 

4 ‘‘(1) QUALIFYING ADVANCED ENERGY

5 PROJECT.— 

6 ‘‘(A) IN GENERAL.—The term ‘qualifying 

7 advanced energy project’ means a project— 

8 ‘‘(i) which re-equips, expands, or es9 tablishes a manufacturing facility for the 

10 production of property which is— 

11 ‘‘(I) designed to be used to 

12 produce energy from the sun, wind, 

13 geothermal deposits (within the mean14 ing of section 613(e)(2)), or other re15 newable resources, 

16 ‘‘(II) designed to manufacture 

17 fuel cells, microturbines, or an energy 

18 storage system for use with electric or 

19 hybrid-electric motor vehicles, 

20 ‘‘(III) designed to manufacture 

21 electric grids to support the trans22 mission of intermittent sources of re23 newable energy, including storage of 

24 such energy, 


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AMDT. NO. 570 

1 ‘‘(IV) designed to capture and se2 quester carbon dioxide emissions, 

3 ‘‘(V) designed to refine or blend 

4 renewable fuels or to produce energy 

5 conservation technologies (including 

6 energy-conserving lighting tech7 nologies and smart grid technologies), 

8 or 

9 ‘‘(VI) other advanced energy 

10 property designed to reduce green11 house gas emissions as may be deter12 mined by the Secretary, and 

13 ‘‘(ii) any portion of the qualified in14 vestment of which is certified by the Sec15 retary under subsection (d) as eligible for 

16 a credit under this section. 

17 ‘‘(B) EXCEPTION.—Such term shall not in18 clude any portion of a project for the produc19 tion of any property which is used in the refin20 ing or blending of any transportation fuel 

21 (other than renewable fuels). 

22 ‘‘(2) ELIGIBLE PROPERTY.—The term ‘eligible 

23 property’ means any property which is part of a 

24 qualifying advanced energy project and is necessary 


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1 for the production of property described in para2 graph (1)(A)(i). 

3 ‘‘(d) QUALIFYING ADVANCED ENERGY PROJECT

4 PROGRAM.— 

5 ‘‘(1) ESTABLISHMENT.— 

6 ‘‘(A) IN GENERAL.—Not later than 180 

7 days after the date of enactment of this section, 

8 the Secretary, in consultation with the Sec9 retary of Energy, shall establish a qualifying 

10 advanced energy project program to consider 

11 and award certifications for qualified invest12 ments eligible for credits under this section to 

13 qualifying advanced energy project sponsors. 

14 ‘‘(B) LIMITATION.—The total amount of 

15 credits that may be allocated under the pro16 gram shall not exceed $2,000,000,000. 

17 ‘‘(2) CERTIFICATION.— 

18 ‘‘(A) APPLICATION PERIOD.—Each appli19 cant for certification under this paragraph shall 

20 submit an application containing such informa21 tion as the Secretary may require during the 3- 

22 year period beginning on the date the Secretary 

23 establishes the program under paragraph (1). 

24 ‘‘(B) TIME TO MEET CRITERIA FOR CER25 TIFICATION.—Each applicant for certification 


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1 shall have 2 years from the date of acceptance 

2 by the Secretary of the application during 

3 which to provide to the Secretary evidence that 

4 the requirements of the certification have been 

5 met. 

6 ‘‘(C) PERIOD OF ISSUANCE.—An applicant 

7 which receives a certification shall have 5 years 

8 from the date of issuance of the certification in 

9 order to place the project in service and if such 

10 project is not placed in service by that time pe11 riod then the certification shall no longer be 

12 valid. 

13 ‘‘(3) SELECTION CRITERIA.—In determining 

14 which qualifying advanced energy projects to certify 

15 under this section, the Secretary— 

16 ‘‘(A) shall take into consideration only 

17 those projects where there is a reasonable ex18 pectation of commercial viability, and 

19 ‘‘(B) shall take into consideration which 

20 projects— 

21 ‘‘(i) will provide the greatest domestic 

22 job creation (both direct and indirect) dur23 ing the credit period, 

24 ‘‘(ii) will provide the greatest net im25 pact in avoiding or reducing air pollutants 


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AMDT. NO. 570 

1 or anthropogenic emissions of greenhouse 

2 gases, 

3 ‘‘(iii) have the greatest readiness for 

4 commercial employment, replication, and 

5 further commercial use in the United 

6 States, 

7 ‘‘(iv) will provide the greatest benefit 

8 in terms of newness in the commercial 

9 market, 

10 ‘‘(v) have the lowest levelized cost of 

11 generated or stored energy, or of measured 

12 reduction in energy consumption or green13 house gas emission (based on costs of the 

14 full supply chain), and 

15 ‘‘(vi) have the shortest project time 

16 from certification to completion. 

17 ‘‘(4) REVIEW AND REDISTRIBUTION.— 

18 ‘‘(A) REVIEW.—Not later than 6 years 

19 after the date of enactment of this section, the 

20 Secretary shall review the credits allocated 

21 under this section as of the date which is 6 

22 years after the date of enactment of this sec23 tion. 


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1 ‘‘(B) REDISTRIBUTION.—The Secretary 

2 may reallocate credits awarded under this sec3 tion if the Secretary determines that— 

4 ‘‘(i) there is an insufficient quantity 

5 of qualifying applications for certification 

6 pending at the time of the review, or 

7 ‘‘(ii) any certification made pursuant 

8 to paragraph (2) has been revoked pursu9 ant to paragraph (2)(B) because the 

10 project subject to the certification has been 

11 delayed as a result of third party opposi12 tion or litigation to the proposed project. 

13 ‘‘(C) REALLOCATION.—If the Secretary de14 termines that credits under this section are 

15 available for reallocation pursuant to the re16 quirements set forth in paragraph (2), the Sec17 retary is authorized to conduct an additional 

18 program for applications for certification. 

19 ‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec20 retary shall, upon making a certification under this 

21 subsection, publicly disclose the identity of the appli22 cant and the amount of the credit with respect to 

23 such applicant. 

24 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—A credit shall 

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1 ment for which a credit is allowed under section 48, 48A, 

2 or 48B.’’. 

3 (c) CONFORMING AMENDMENTS.— 

4 (1) Section 49(a)(1)(C) is amended by striking 

5 ‘‘and’’ at the end of clause (iii), by striking the pe6 riod at the end of clause (iv) and inserting ‘‘, and’’, 

7 and by adding after clause (iv) the following new 

8 clause: 

9 ‘‘(v) the basis of any property which 

10 is part of a qualifying advanced energy 

11 project under section 48C.’’. 

12 (2) The table of sections for subpart E of part 

13 IV of subchapter A of chapter 1 is amended by in14 serting after the item relating to section 48B the fol15 lowing new item: 

‘‘48C. Qualifying advanced energy project credit.’’. 

16 (d) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to periods after the date of the 

18 enactment of this Act, under rules similar to the rules of 

19 section 48(m) of the Internal Revenue Code of 1986 (as 

20 in effect on the day before the date of the enactment of 

21 the Revenue Reconciliation Act of 1990). 


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1 SEC. 1303. INCENTIVES FOR MANUFACTURING FACILITIES 

2 PRODUCING PLUG-IN ELECTRIC DRIVE 

3 MOTOR VEHICLES AND COMPONENTS. 

4 (a) DEDUCTION FOR MANUFACTURING FACILI5 TIES.—Part VI of subchapter B of chapter 1 (relating to 

6 itemized deductions for individuals and corporations) is 

7 amended by inserting after section 179E the following new 

8 section: 

9 ‘‘SEC. 179F. ELECTION TO EXPENSE MANUFACTURING FA10 CILITIES PRODUCING PLUG-IN ELECTRIC 

11 DRIVE MOTOR VEHICLES AND COMPONENTS. 

12 ‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 

13 elect to treat the applicable percentage of the cost of any 

14 qualified plug-in electric drive motor vehicle manufac15 turing facility property as an expense which is not charge16 able to a capital account. Any cost so treated shall be al17 lowed as a deduction for the taxable year in which the 

18 qualified manufacturing facility property is placed in serv19 ice. 

20 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

21 subsection (a), the applicable percentage is— 

22 ‘‘(1) 100 percent, in the case of qualified plug23 in electric drive motor vehicle manufacturing facility 

24 property which is placed in service before January 1, 

25 2012, and 


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AMDT. NO. 570 

1 ‘‘(2) 50 percent, in the case of qualified plug2 in electric drive motor vehicle manufacturing facility 

3 property which is placed in service after December 

4 31, 2011, and before January 1, 2015. 

5 ‘‘(c) ELECTION.— 

6 ‘‘(1) IN GENERAL.—An election under this sec7 tion for any taxable year shall be made on the tax8 payer’s return of the tax imposed by this chapter for 

9 the taxable year. Such election shall be made in such 

10 manner as the Secretary may by regulations pre11 scribe. 

12 ‘‘(2) ELECTION IRREVOCABLE.—Any election 

13 made under this section may not be revoked except 

14 with the consent of the Secretary. 

15 ‘‘(d) QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR

16 VEHICLE MANUFACTURING FACILITY PROPERTY.—For 

17 purposes of this section— 

18 ‘‘(1) IN GENERAL.—The term ‘qualified plug-in 

19 electric drive motor vehicle manufacturing facility 

20 property’ means any qualified property— 

21 ‘‘(A) the original use of which commences 

22 with the taxpayer, 

23 ‘‘(B) which is placed in service by the tax24 payer after the date of the enactment of this 

25 section and before January 1, 2015, and 


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1 ‘‘(C) no written binding contract for the 

2 construction of which was in effect on or before 

3 the date of the enactment of this section. 

4 ‘‘(2) QUALIFIED PROPERTY.— 

5 ‘‘(A) IN GENERAL.—The term ‘qualified 

6 property’ means any property which is a facility 

7 or a portion of a facility used for the production 

8 of— 

9 ‘‘(i) any new qualified plug-in electric 

10 drive motor vehicle (as defined by section 

11 30D(c)), or 

12 ‘‘(ii) any eligible component. 

13 ‘‘(B) ELIGIBLE COMPONENT.—The term 

14 ‘eligible component’ means any battery, any 

15 electric motor or generator, or any power con16 trol unit which is designed specifically for use 

17 with a new qualified plug-in electric drive motor 

18 vehicle (as so defined). 

19 ‘‘(e) SPECIAL RULE FOR DUAL USE PROPERTY.—In 

20 the case of any qualified plug-in electric drive motor vehi21 cle manufacturing facility property which is used to 

22 produce both qualified property and other property which 

23 is not qualified property, the amount of costs taken into 

24 account under subsection (a) shall be reduced by an 

25 amount equal to— 


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1 ‘‘(1) the total amount of such costs (determined 

2 before the application of this subsection), multiplied 

3 by 

4 ‘‘(2) the percentage of property expected to be 

5 produced which is not qualified property. 

6 ‘‘(f) ELECTION TO RECEIVE LOAN IN LIEU OF DE7 DUCTION.— 

8 ‘‘(1) IN GENERAL.—If a taxpayer elects to have 

9 this subsection apply for any taxable year— 

10 ‘‘(A) subsection (a) shall not apply to any 

11 qualified plug-in electric drive motor vehicle 

12 manufacturing facility property placed in serv13 ice by the taxpayer, 

14 ‘‘(B) such taxpayer shall receive a loan 

15 from the Secretary in an amount and under 

16 such terms as provided in section 1303(b) of 

17 the American Recovery and Reinvestment Tax 

18 Act of 2009, and 

19 ‘‘(C) in the taxable year in which such 

20 qualified loan is repaid, each of the limitations 

21 described in paragraph (2) shall be increased by 

22 the qualified plug-in electric drive motor vehicle 

23 manufacturing facility amount which is— 

24 ‘‘(i) determined under paragraph (3), 

25 and 


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1 ‘‘(ii) allocated to such limitation under 

2 paragraph (4). 

3 ‘‘(2) LIMITATIONS TO BE INCREASED.—The 

4 limitations described in this paragraph are— 

5 ‘‘(A) the limitation imposed by section 

6 38(c), and 

7 ‘‘(B) the limitation imposed by section 

8 53(c). 

9 ‘‘(3) QUALIFIED PLUG-IN ELECTRIC DRIVE

10 MOTOR VEHICLE MANUFACTURING FACILITY

11 AMOUNT.—For purposes of this paragraph— 

12 ‘‘(A) IN GENERAL.—The qualified plug-in 

13 electric drive motor vehicle manufacturing facil14 ity amount is an amount equal to the applicable 

15 percentage of any qualified plug-in electric drive 

16 motor vehicle manufacturing facility which is 

17 placed in service during the taxable year. 

18 ‘‘(B) APPLICABLE PERCENTAGE.—For 

19 purposes of subparagraph (A), the applicable 

20 percentage is— 

21 ‘‘(i) 35 percent, in the case of quali22 fied plug-in electric drive motor vehicle 

23 manufacturing facility property which is 

24 placed in service before January 1, 2012, 

25 and 


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1 ‘‘(ii) 17.5 percent, in the case of 

2 qualified plug-in electric drive motor vehi3 cle manufacturing facility property which 

4 is placed in service after December 31, 

5 2011, and before January 1, 2015. 

6 ‘‘(C) SPECIAL RULE FOR DUAL USE PROP7 ERTY.—In the case of any qualified plug-in 

8 electric drive motor vehicle manufacturing facil9 ity property which is used to produce both 

10 qualified property and other property which is 

11 not qualified property, the amount of costs 

12 taken into account under subparagraph (A) 

13 shall be reduced by an amount equal to— 

14 ‘‘(i) the total amount of such costs 

15 (determined before the application of this 

16 subparagraph), multiplied by 

17 ‘‘(ii) the percentage of property ex18 pected to be produced which is not quali19 fied property. 

20 ‘‘(4) ALLOCATION OF QUALIFIED PLUG-IN

21 ELECTRIC DRIVE MOTOR VEHICLE MANUFACTURING

22 FACILITY AMOUNT.—The taxpayer shall, at such 

23 time and in such manner as the Secretary may pre24 scribe, specify the portion (if any) of the qualified 

25 plug-in electric drive motor vehicle manufacturing 


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1 facility amount for the taxable year which is to be 

2 allocated to each of the limitations described in 

3 paragraph (2) for such taxable year. 

4 ‘‘(5) ELECTION.— 

5 ‘‘(A) IN GENERAL.—An election under this 

6 subsection for any taxable year shall be made 

7 on the taxpayer’s return of the tax imposed by 

8 this chapter for the taxable year. Such election 

9 shall be made in such manner as the Secretary 

10 may by regulations prescribe. 

11 ‘‘(B) ELECTION IRREVOCABLE.—Any elec12 tion made under this subsection may not be re13 voked except with the consent of the Sec14 retary.’’. 

15 (b) LOAN PROGRAM.— 

16 (1) IN GENERAL.—The Secretary of the Treas17 ury (or the Secretary’s delegate) shall provide a loan 

18 to any person who is allowed a deduction under sec19 tion 179F of the Internal Revenue Code and who 

20 makes an election under section 179F(f) of such 

21 Code in an amount equal to the qualified plug-in 

22 electric drive motor vehicle manufacturing facility 

23 amount (as defined in such section 179F(f)). 

24 (2) TERM.—Such loan shall be in the form of 

25 a senior note issued by the taxpayer to the Secretary 


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1 of the Treasury, secured by the qualified plug-in 

2 electric drive motor vehicle manufacturing facility 

3 property (as defined in section 179F of the Internal 

4 Revenue Code of 1986) of the taxpayer, and having 

5 a term of 20 years and interest payable at the appli6 cable Federal rate (as determined under section 

7 1274(d) of the Internal Revenue Code of 1986). 

8 (3) APPROPRIATIONS.—There is hereby appro9 priated to the Secretary of the Treasury such sums 

10 as may be necessary to carry out this subsection. 

11 (c) CLERICAL AMENDMENT.—The table of sections 

12 for part VI of subchapter B of chapter 1 is amended by 

13 adding at the end the following new item: 

‘‘Sec. 179F. Election to expense manufacturing facilities producing plug-in electric drive motor vehicle and components.’’. 

14 (d) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

17 Subtitle E—Economic Recovery 

18 Tools 

19 SEC. 1401. RECOVERY ZONE BONDS. 

20 (a) IN GENERAL.—Subchapter Y of chapter 1 is 

21 amended by adding at the end the following new part: 

22 ‘‘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. 


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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— 

7 ‘‘(A) by allocating 1 percent of each such 

8 limitation to each State, and 

9 ‘‘(B) by allocating the remainder of each 

10 such limitation among the States in the propor11 tion that each State’s 2008 State employment 

12 decline bears to the aggregate of the 2008 

13 State employment declines for all of the States. 

14 ‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For 

15 purposes of this subsection, the term ‘2008 State 

16 employment decline’ means, with respect to any 

17 State, the excess (if any) of— 

18 ‘‘(A) the number of individuals employed 

19 in such State determined for December 2007, 

20 over 

21 ‘‘(B) the number of individuals employed 

22 in such State determined for December 2008. 

23 ‘‘(3) ALLOCATIONS BY STATES.— 

24 ‘‘(A) IN GENERAL.—Each State with re25 spect to which an allocation is made under 

26 paragraph (1) shall reallocate such allocation 


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1 among the counties and large municipalities in 

2 such State in the proportion the each such 

3 county’s or municipality’s 2008 employment de4 cline bears to the aggregate of the 2008 em5 ployment declines for all the counties and mu6 nicipalities in such State. 

7 ‘‘(B) LARGE MUNICIPALITIES.—For pur8 poses of subparagraph (A), the term ‘large mu9 nicipality’ means a municipality with a popu10 lation of more than 100,000. 

11 ‘‘(C) DETERMINATION OF LOCAL EMPLOY12 MENT DECLINES.—For purposes of this para13 graph, the employment decline of any munici14 pality or county shall be determined in the 

15 same manner as determining the State employ16 ment decline under paragraph (2), except that 

17 in the case of a municipality any portion of 

18 which is in a county, such portion shall be 

19 treated as part of such municipality and not 

20 part of such county. 

21 ‘‘(4) NATIONAL LIMITATIONS.— 

22 ‘‘(A) RECOVERY ZONE ECONOMIC DEVEL23 OPMENT BONDS.—There is a national recovery 

24 zone economic development bond limitation of 

25 $5,000,000,000. 


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1 ‘‘(B) RECOVERY ZONE FACILITY BONDS.— 

2 There is a national recovery zone facility bond 

3 limitation of $10,000,000,000. 

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, rate of home 

8 foreclosures, 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 6431, and 

17 ‘‘(2) subsection (b) of such section shall be ap18 plied by substituting ‘40 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 build America bond (as defined in 

24 section 54AA(d)) issued before January 1, 2011, as 

25 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. 1402. 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, 

11 ‘‘(B) the Indian tribal government issuing 

12 such bond and any instrumentality of such In13 dian tribal government shall be treated as a 

14 State for purposes of section 141, and 

15 ‘‘(C) section 146 shall not apply. 

16 ‘‘(3) TRIBAL ECONOMIC DEVELOPMENT

17 BOND.— 

18 ‘‘(A) IN GENERAL.—For purposes of this 

19 section, the term ‘tribal economic development 

20 bond’ means any bond issued by an Indian trib21 al government— 

22 ‘‘(i) the interest on which would be ex23 empt from tax under section 103 if issued 

24 by a State or local government, and 


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AMDT. NO. 570 

1 ‘‘(ii) which is designated by the In2 dian tribal government as a tribal eco3 nomic development bond for purposes of 

4 this subsection. 

5 ‘‘(B) EXCEPTIONS.—The term tribal eco6 nomic development bond shall not include any 

7 bond issued as part of an issue if any portion 

8 of the proceeds of such issue are used to fi9 nance— 

10 ‘‘(i) any portion of a building in which 

11 class II or class III gaming (as defined in 

12 section 4 of the Indian Gaming Regulatory 

13 Act) is conducted or housed or any other 

14 property actually used in the conduct of 

15 such gaming, or 

16 ‘‘(ii) any facility located outside the 

17 Indian reservation (as defined in section 

18 168(j)(6)). 

19 ‘‘(C) LIMITATION ON AMOUNT OF BONDS

20 DESIGNATED.—The maximum aggregate face 

21 amount of bonds which may be designated by 

22 any Indian tribal government under subpara23 graph (A) shall not exceed the amount of na24 tional tribal economic development bond limitaVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00548 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 tion allocated to such government under para2 graph (1).’’. 

3 (b) STUDY.—The Secretary of the Treasury, or the 

4 Secretary’s delegate, shall conduct a study of the effects 

5 of the amendment made by subsection (a). Not later than 

6 1 year after the date of the enactment of this Act, the 

7 Secretary of the Treasury, or the Secretary’s delegate, 

8 shall report to Congress on the results of the study con9 ducted under this paragraph, including the Secretary’s 

10 recommendations regarding such amendment. 

11 (c) EFFECTIVE DATE.—The amendment made by 

12 subsection (a) shall apply to obligations issued after the 

13 date of the enactment of this Act. 

14 SEC. 1403. MODIFICATIONS TO NEW MARKETS TAX CREDIT. 

15 (a) INCREASE IN NATIONAL LIMITATION.— 

16 (1) IN GENERAL.—Section 45D(f)(1) is amend17 ed— 

18 (A) by striking ‘‘and’’ at the end of sub19 paragraph (C), 

20 (B) by striking ‘‘, 2007, 2008, and 2009.’’ 

21 in subparagraph (D), and inserting ‘‘and 

22 2007,’’, and 

23 (C) by adding at the end the following new 

24 subparagraphs: 

25 ‘‘(E) $5,000,000,000 for 2008, and 


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AMDT. NO. 570 

1 ‘‘(F) $5,000,000,000 for 2009.’’. 

2 (2) SPECIAL RULE FOR ALLOCATION OF IN3 CREASED 2008 LIMITATION.—The amount of the in4 crease in the new markets tax credit limitation for 

5 calendar year 2008 by reason of the amendments 

6 made by subsection (a) shall be allocated in accord7 ance with section 45D(f)(2) of the Internal Revenue 

8 Code of 1986 to qualified community development 

9 entities (as defined in section 45D(c) of such Code) 

10 which— 

11 (A) submitted an allocation application 

12 with respect to calendar year 2008, and 

13 (B)(i) did not receive an allocation for 

14 such calendar year, or 

15 (ii) received an allocation for such calendar 

16 year in an amount less than the amount re17 quested in the allocation application. 

18 (b) ALTERNATIVE MINIMUM TAX RELIEF.— 

19 (1) IN GENERAL.—Section 38(c)(4)(B) is 

20 amended by redesignating clauses (v) through (viii) 

21 as clauses (vi) through (ix), respectively, and by in22 serting after clause (iv) the following new clause: 

23 ‘‘(v) the credit determined under sec24 tion 45D to the extent that such credit is 

25 attributable to a qualified equity investVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00550 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ment which is designated as such under 

2 section 45D(b)(1)(C) pursuant to an allo3 cation of the new markets tax credit limi4 tation for calendar year 2009,’’. 

5 (2) EFFECTIVE DATE.—The amendments made 

6 by this subsection shall apply to credits determined 

7 under section 45D of the Internal Revenue Code of 

8 1986 in taxable years ending after the date of the 

9 enactment of this Act, and to carrybacks of such 

10 credits. 

11 Subtitle F—Infrastructure 

12 Financing Tools 

13 PART I—IMPROVED MARKETABILITY FOR TAX14 EXEMPT BONDS 

15 SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX16 EXEMPT INTEREST EXPENSE OF FINANCIAL 

17 INSTITUTIONS. 

18 (a) IN GENERAL.—Subsection (b) of section 265 is 

19 amended by adding at the end the following new para20 graph: 

21 ‘‘(7) DE MINIMIS EXCEPTION FOR BONDS

22 ISSUED DURING 2009 OR 2010.— 

23 ‘‘(A) IN GENERAL.—In applying paragraph 

24 (2)(A), there shall not be taken into account 


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1 tax-exempt obligations issued during 2009 or 

2 2010. 

3 ‘‘(B) LIMITATION.—The amount of tax-ex4 empt obligations not taken into account by rea5 son of subparagraph (A) shall not exceed 2 per6 cent of the amount determined under para7 graph (2)(B). 

8 ‘‘(C) REFUNDINGS.—For purposes of this 

9 paragraph, a refunding bond (whether a current 

10 or advance 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 refundings, 

13 the original bond).’’. 

14 (b) TREATMENT AS FINANCIAL INSTITUTION PREF15 ERENCE ITEM.—Clause (iv) of section 291(e)(1)(B) is 

16 amended by adding at the end the following: ‘‘That por17 tion of any obligation not taken into account under para18 graph (2)(A) of section 265(b) by reason of paragraph (7) 

19 of such section shall be treated for purposes of this section 

20 as having been acquired on August 7, 1986.’’. 

21 (c) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to obligations issued after Decem23 ber 31, 2008. 


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AMDT. NO. 570 

1 SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION 

2 TO TAX-EXEMPT INTEREST EXPENSE ALLOCA3 TION RULES FOR FINANCIAL INSTITUTIONS. 

4 (a) IN GENERAL.—Paragraph (3) of section 265(b) 

5 (relating to exception for certain tax-exempt obligations) 

6 is amended by adding at the end the following new sub7 paragraph: 

8 ‘‘(G) SPECIAL RULES FOR OBLIGATIONS

9 ISSUED DURING 2009 AND 2010.— 

10 ‘‘(i) INCREASE IN LIMITATION.—In 

11 the case of obligations issued during 2009 

12 or 2010, subparagraphs (C)(i), (D)(i), and 

13 (D)(iii)(II) shall each be applied by sub14 stituting ‘$30,000,000’ for ‘$10,000,000’. 

15 ‘‘(ii) QUALIFIED 501(C)(3) BONDS

16 TREATED AS ISSUED BY EXEMPT ORGANI17 ZATION.—In the case of a qualified 

18 501(c)(3) bond (as defined in section 145) 

19 issued during 2009 or 2010, this para20 graph shall be applied by treating the 

21 501(c)(3) organization for whose benefit 

22 such bond was issued as the issuer. 

23 ‘‘(iii) SPECIAL RULE FOR QUALIFIED

24 FINANCINGS.—In the case of a qualified fi25 nancing issue issued during 2009 or 

26 2010— 


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1 ‘‘(I) subparagraph (F) shall not 

2 apply, and 

3 ‘‘(II) any obligation issued as a 

4 part of such issue shall be treated as 

5 a qualified tax-exempt obligation if 

6 the requirements of this paragraph 

7 are met with respect to each qualified 

8 portion of the issue (determined by 

9 treating each qualified portion as a 

10 separate issue which is issued by the 

11 qualified borrower with respect to 

12 which such portion relates). 

13 ‘‘(iv) QUALIFIED FINANCING ISSUE.— 

14 For purposes of this subparagraph, the 

15 term ‘qualified financing issue’ means any 

16 composite, pooled, or other conduit financ17 ing issue the proceeds of which are used 

18 directly or indirectly to make or finance 

19 loans to 1 or more ultimate borrowers each 

20 of whom is a qualified borrower. 

21 ‘‘(v) QUALIFIED PORTION.—For pur22 poses of this subparagraph, the term 

23 ‘qualified portion’ means that portion of 

24 the proceeds which are used with respect 

25 to each qualified borrower under the issue. 


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AMDT. NO. 570 

1 ‘‘(vi) QUALIFIED BORROWER.—For 

2 purposes of this subparagraph, the term 

3 ‘qualified borrower’ means a borrower 

4 which is a State or political subdivision 

5 thereof or an organization described in sec6 tion 501(c)(3) and exempt from taxation 

7 under section 501(a).’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall apply to obligations issued after Decem10 ber 31, 2008. 

11 SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE 

12 MINIMUM TAX LIMITATIONS ON TAX-EXEMPT 

13 BONDS. 

14 (a) INTEREST ON PRIVATE ACTIVITY BONDS ISSUED

15 DURING 2009 AND 2010 NOT TREATED AS TAX PREF16 ERENCE ITEM.—Subparagraph (C) of section 57(a)(5) is 

17 amended by adding at the end a new clause: 

18 ‘‘(vi) EXCEPTION FOR BONDS ISSUED

19 IN 2009 AND 2010.—For purposes of clause 

20 (i), the term ‘private activity bond’ shall 

21 not include any bond issued after Decem22 ber 31, 2008, and before January 1, 2011. 

23 For purposes of the preceding sentence, a 

24 refunding bond (whether a current or ad25 vance refunding) shall be treated as issued 


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AMDT. NO. 570 

1 on the date of the issuance of the refunded 

2 bond (or in the case of a series of 

3 refundings, the original bond).’’. 

4 (b) NO ADJUSTMENT TO ADJUSTED CURRENT

5 EARNINGS FOR INTEREST ON TAX-EXEMPT BONDS

6 ISSUED DURING 2009 AND 2010.—Subparagraph (B) of 

7 section 56(g)(4) is amended by adding at the end the fol8 lowing new clause: 

9 ‘‘(iv) TAX EXEMPT INTEREST ON

10 BONDS ISSUED IN 2009 AND 2010.—Clause 

11 (i) shall not apply in the case of any inter12 est on a bond issued after December 31, 

13 2008, and before January 1, 2011. For 

14 purposes of the preceding sentence, a re15 funding bond (whether a current or ad16 vance refunding) shall be treated as issued 

17 on the date of the issuance of the refunded 

18 bond (or in the case of a series of 

19 refundings, the original bond).’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to obligations issued after Decem22 ber 31, 2008. 


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1 SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL 

2 FACILITY BONDS. 

3 (a) IN GENERAL.—Paragraph (1) of section 142(i) 

4 is amended by striking ‘‘operate at speeds in excess of’’ 

5 and inserting ‘‘be capable of attaining a maximum speed 

6 in excess of’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to bonds issued after the date of 

9 the enactment of this Act. 

10 PART II—DELAY IN APPLICATION OF WITH11 HOLDING TAX ON GOVERNMENT CONTRAC12 TORS 

13 SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX 

14 ON GOVERNMENT CONTRACTORS. 

15 Subsection (b) of section 511 of the Tax Increase 

16 Prevention and Reconciliation Act of 2005 is amended by 

17 striking ‘‘December 31, 2010’’ and inserting ‘‘December 

18 31, 2011’’. 

19 PART III—TAX CREDIT BONDS FOR SCHOOLS 

20 SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

21 (a) IN GENERAL.—Subpart I of part IV of sub22 chapter A of chapter 1 is amended by adding at the end 

23 the following new section: 

24 ‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. 

25 ‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.— 

26 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 limitation amount allocated under subsection (d) for 

19 such calendar year to such issuer. 

20 ‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS

21 DESIGNATED.—There is a national qualified school con22 struction bond limitation for each calendar year. Such lim23 itation is— 

24 ‘‘(1) $5,000,000,000 for 2009, 

25 ‘‘(2) $5,000,000,000 for 2010, and 


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1 ‘‘(3) except as provided in subsection (e), zero 

2 after 2010. 

3 ‘‘(d) LIMITATION ALLOCATED AMONG STATES.— 

4 ‘‘(1) IN GENERAL.—The limitation applicable 

5 under subsection (c) for any calendar year shall be 

6 allocated by the Secretary among the States in pro7 portion to the respective numbers of children in each 

8 State who have attained age 5 but not age 18 for 

9 the most recent fiscal year ending before such cal10 endar year. The limitation amount allocated to a 

11 State under the preceding sentence shall be allocated 

12 by the State to issuers within such State. 

13 ‘‘(2) MINIMUM ALLOCATIONS TO STATES.— 

14 ‘‘(A) IN GENERAL.—The Secretary shall 

15 adjust the allocations under this subsection for 

16 any calendar year for each State to the extent 

17 necessary to ensure that the amount allocated 

18 to such State under this subsection for such 

19 year is not less than an amount equal to such 

20 State’s adjusted minimum percentage of the 

21 amount to be allocated under paragraph (1) for 

22 the calendar year. 

23 ‘‘(B) MINIMUM PERCENTAGE.—A State’s 

24 minimum percentage for any calendar year is 

25 equal to the product of— 


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AMDT. NO. 570 

1 ‘‘(i) the quotient of— 

2 ‘‘(I) the amount the State is eli3 gible to receive under section 1124(d) 

4 of the Elementary and Secondary 

5 Education Act of 1965 (20 U.S.C. 

6 6333(d)) for the most recent fiscal 

7 year ending before such calendar year, 

8 divided by 

9 ‘‘(II) the amount all States are 

10 eligible to receive under section 1124 

11 of such Act (20 U.S.C. 6333) for such 

12 fiscal year, multiplied by 

13 ‘‘(ii) 100. 

14 ‘‘(3) ALLOCATIONS TO CERTAIN POSSES15 SIONS.—The amount to be allocated under para16 graph (1) to any possession of the United States 

17 other than Puerto Rico shall be the amount which 

18 would have been allocated if all allocations under 

19 paragraph (1) were made on the basis of respective 

20 populations of individuals below the poverty line (as 

21 defined by the Office of Management and Budget). 

22 In making other allocations, the amount to be allo23 cated under paragraph (1) shall be reduced by the 

24 aggregate amount allocated under this paragraph to 

25 possessions of the United States. 


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1 ‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In 

2 addition to the amounts otherwise allocated under 

3 this subsection, $200,000,000 for calendar year 

4 2009, and $200,000,000 for calendar year 2010, 

5 shall be allocated by the Secretary of the Interior for 

6 purposes of the construction, rehabilitation, and re7 pair of schools funded by the Bureau of Indian Af8 fairs. In the case of amounts allocated under the 

9 preceding sentence, Indian tribal governments (as 

10 defined in section 7701(a)(40)) shall be treated as 

11 qualified issuers for purposes of this subchapter. 

12 ‘‘(e) CARRYOVER OF UNUSED LIMITATION.—If for 

13 any calendar year— 

14 ‘‘(1) the amount allocated under subsection (d) 

15 to any State, exceeds 

16 ‘‘(2) the amount of bonds issued during such 

17 year which are designated under subsection (a) pur18 suant to such allocation, 

19 the limitation amount under such subsection for such 

20 State for the following calendar year shall be increased 

21 by the amount of such excess. A similar rule shall apply 

22 to the amounts allocated under subsection (d)(4).’’. 

23 (b) CONFORMING AMENDMENTS.— 

24 (1) Paragraph (1) of section 54A(d) is amended 

25 by striking ‘‘or’’ at the end of subparagraph (C), by 


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AMDT. NO. 570 

1 inserting ‘‘or’’ at the end of subparagraph (D), and 

2 by inserting after subparagraph (D) the following 

3 new subparagraph: 

4 ‘‘(E) a qualified school construction 

5 bond,’’. 

6 (2) Subparagraph (C) of section 54A(d)(2) is 

7 amended by striking ‘‘and’’ at the end of clause (iii), 

8 by striking the period at the end of clause (iv) and 

9 inserting ‘‘, and’’, and by adding at the end the fol10 lowing new clause: 

11 ‘‘(v) in the case of a qualified school 

12 construction bond, a purpose specified in 

13 section 54F(a)(1).’’. 

14 (3) The table of sections for subpart I of part 

15 IV of subchapter A of chapter 1 is amended by add16 ing at the end the following new item: 

‘‘Sec. 54F. Qualified school construction bonds.’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to obligations issued after the date 

19 of the enactment of this Act. 

20 SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED 

21 ZONE ACADEMY BONDS. 

22 (a) IN GENERAL.—Section 54E(c)(1) is amended by 

23 striking ‘‘and 2009’’ and inserting ‘‘and $1,400,000,000 

24 for 2009 and 2010’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to obligations issued after Decem3 ber 31, 2008. 

4 PART IV—BUILD AMERICA BONDS 

5 SEC. 1531. BUILD AMERICA BONDS. 

6 (a) IN GENERAL.—Part IV of subchapter A of chap7 ter 1 is amended by adding at the end the following new 

8 subpart: 

9 ‘‘Subpart J—Build America Bonds 

‘‘Sec. 54AA. Build America bonds. 

10 ‘‘SEC. 54AA. BUILD AMERICA BONDS. 

11 ‘‘(a) IN GENERAL.—If a taxpayer holds a build 

12 America bond on one or more interest payment dates of 

13 the bond during any taxable year, there shall be allowed 

14 as a credit against the tax imposed by this chapter for 

15 the taxable year an amount equal to the sum of the credits 

16 determined under subsection (b) with respect to such 

17 dates. 

18 ‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 

19 determined under this subsection with respect to any in20 terest payment date for a build America bond is 35 per21 cent of the amount of interest payable by the issuer with 

22 respect to such date (40 percent in the case of an issuer 

23 described in section 148(f)(4)(D) (determined without re24 gard to clauses (v), (vi), and (vii) thereof and by subVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00563 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 stituting ‘$30,000,000’ for ‘$5,000,000’ each place it ap2 pears therein). 

3 ‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 

4 ‘‘(1) IN GENERAL.—The credit allowed under 

5 subsection (a) for any taxable year shall not exceed 

6 the excess of— 

7 ‘‘(A) the sum of the regular tax liability 

8 (as defined in section 26(b)) plus the tax im9 posed by section 55, over 

10 ‘‘(B) the sum of the credits allowable 

11 under this part (other than subpart C and this 

12 subpart). 

13 ‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 

14 credit allowable under subsection (a) exceeds the 

15 limitation imposed by paragraph (1) for such taxable 

16 year, such excess shall be carried to the succeeding 

17 taxable year and added to the credit allowable under 

18 subsection (a) for such taxable year (determined be19 fore the application of paragraph (1) for such suc20 ceeding taxable year). 

21 ‘‘(d) BUILD AMERICA BOND.— 

22 ‘‘(1) IN GENERAL.—For purposes of this sec23 tion, the term ‘build America bond’ means any obli24 gation (other than a private activity bond) if— 


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1 ‘‘(A) the interest on such obligation would 

2 (but for this section) be excludable from gross 

3 income under section 103, 

4 ‘‘(B) such obligation is issued before Janu5 ary 1, 2011, and 

6 ‘‘(C) the issuer makes an irrevocable elec7 tion to have this section apply. 

8 ‘‘(2) APPLICABLE RULES.—For purposes of ap9 plying paragraph (1)— 

10 ‘‘(A) for purposes of section 149(b), a 

11 build America bond shall not be treated as fed12 erally guaranteed by reason of the credit al13 lowed under subsection (a) or section 6431, 

14 ‘‘(B) for purposes of section 148, the yield 

15 on a build America bond shall be determined 

16 without regard to the credit allowed under sub17 section (a), and 

18 ‘‘(C) a bond shall not be treated as a build 

19 America bond if the issue price has more than 

20 a de minimis amount (determined under rules 

21 similar to the rules of section 1273(a)(3)) of 

22 premium over the stated principal amount of 

23 the bond. 

24 ‘‘(e) INTEREST PAYMENT DATE.—For purposes of 

25 this section, the term ‘interest payment date’ means any 


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1 date on which the holder of record of the build America 

2 bond is entitled to a payment of interest under such bond. 

3 ‘‘(f) SPECIAL RULES.— 

4 ‘‘(1) INTEREST ON BUILD AMERICA BONDS IN5 CLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME

6 TAX PURPOSES.—For purposes of this title, interest 

7 on any build America bond shall be includible in 

8 gross income. 

9 ‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 

10 similar to the rules of subsections (f), (g), (h), and 

11 (i) of section 54A shall apply for purposes of the 

12 credit allowed under subsection (a). 

13 ‘‘(g) SPECIAL RULE FOR QUALIFIED BONDS ISSUED

14 BEFORE 2011.—In the case of a qualified bond issued be15 fore January 1, 2011— 

16 ‘‘(1) ISSUER ALLOWED REFUNDABLE CRED17 IT.—In lieu of any credit allowed under this section 

18 with respect to such bond, the issuer of such bond 

19 shall be allowed a credit as provided in section 6431. 

20 ‘‘(2) QUALIFIED BOND.—For purposes of this 

21 subsection, the term ‘qualified bond’ means any 

22 build America bond issued as part of an issue if— 

23 ‘‘(A) 100 percent of the available project 

24 proceeds (as defined in section 54A) of such 


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1 issue are to be used for capital expenditures, 

2 and 

3 ‘‘(B) the issuer makes an irrevocable elec4 tion to have this subsection apply. 

5 ‘‘(h) REGULATIONS.—The Secretary may prescribe 

6 such regulations and other guidance as may be necessary 

7 or appropriate to carry out this section and section 

8 6431.’’. 

9 (b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE

10 2011.—Subchapter B of chapter 65 is amended by adding 

11 at the end the following new section: 

12 ‘‘SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO 

13 ISSUER. 

14 ‘‘(a) IN GENERAL.—In the case of a qualified bond 

15 issued before January 1, 2011, the issuer of such bond 

16 shall be allowed a credit with respect to each interest pay17 ment under such bond which shall be payable by the Sec18 retary as provided in subsection (b). 

19 ‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay 

20 (contemporaneously with each interest payment date 

21 under such bond) to the issuer of such bond (or to any 

22 person who makes such interest payments on behalf of the 

23 issuer) 35 percent of the interest payable under such bond 

24 on such date (40 percent in the case of an issuer described 

25 in section 148(f)(4)(D) (determined without regard to 


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1 clauses (v), (vi), and (vii) thereof and by substituting 

2 ‘$30,000,000’ for ‘$5,000,000’ each place it appears 

3 therein). 

4 ‘‘(c) APPLICATION OF ARBITRAGE RULES.—For pur5 poses of section 148, the yield on a qualified bond shall 

6 be reduced by the credit allowed under this section. 

7 ‘‘(d) INTEREST PAYMENT DATE.—For purposes of 

8 this subsection, the term ‘interest payment date’ means 

9 each date on which interest is payable by the issuer under 

10 the terms of the bond. 

11 ‘‘(e) QUALIFIED BOND.—For purposes of this sub12 section, the term ‘qualified bond’ has the meaning given 

13 such term in section 54AA(g).’’. 

14 (c) CONFORMING AMENDMENTS.— 

15 (1) Section 1324(b)(2) of title 31, United 

16 States Code, is amended by striking ‘‘or 6428’’ and 

17 inserting ‘‘6428, or 6431,’’. 

18 (2) Section 54A(c)(1)(B) is amended by strik19 ing ‘‘subpart C’’ and inserting ‘‘subparts C and J’’. 

20 (3) Sections 54(c)(2), 1397E(c)(2), and 

21 1400N(l)(3)(B) are each amended by striking ‘‘and 

22 I’’ and inserting ‘‘, I, and J’’. 

23 (4) Section 6401(b)(1) is amended by striking 

24 ‘‘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. Build America bonds.’’. 

4 (6) The table of section for subchapter B of 

5 chapter 65 is amended by adding at the end the fol6 lowing new item: 

‘‘Sec. 6431. Credit for qualified bonds allowed to issuer.’’. 

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 build 

10 America bond (as defined in section 54AA of the Internal 

11 Revenue Code of 1986, as added by this section) and the 

12 amount of any credit determined under such section with 

13 respect to such bond shall be treated for purposes of the 

14 income tax laws of such State as being exempt from Fed15 eral 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. 


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1 Subtitle G—Economic Recovery 

2 Payments to Certain Individuals 

3 SEC. 1601. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS 

4 OF SOCIAL SECURITY, SUPPLEMENTAL SECU5 RITY INCOME, RAILROAD RETIREMENT BENE6 FITS, AND VETERANS DISABILITY COMPENSA7 TION OR PENSION BENEFITS. 

8 (a) AUTHORITY TO MAKE PAYMENTS.— 

9 (1) ELIGIBILITY.— 

10 (A) IN GENERAL.—Subject to paragraph 

11 (5)(B), the Secretary of the Treasury shall 

12 make a $300 payment to each individual who, 

13 for any month during the 3-month period end14 ing with the month which ends prior to the 

15 month that includes the date of the enactment 

16 of this Act, is entitled to a benefit payment de17 scribed in clause (i), (ii), or (iii) of subpara18 graph (B) or is eligible for a SSI cash benefit 

19 described in subparagraph (C). 

20 (B) BENEFIT PAYMENT DESCRIBED.—For 

21 purposes of subparagraph (A): 

22 (i) TITLE II BENEFIT.—A benefit pay23 ment described in this clause is a monthly 

24 insurance benefit payable (without regard 

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1 cial Security Act (42 U.S.C. 402(j)(1), 

2 423(b)) under— 

3 (I) section 202(a) of such Act 

4 (42 U.S.C. 402(a)); 

5 (II) section 202(b) of such Act 

6 (42 U.S.C. 402(b)); 

7 (III) section 202(c) of such Act 

8 (42 U.S.C. 402(c)); 

9 (IV) section 202(d)(1)(B)(ii) of 

10 such Act (42 U.S.C. 

11 402(d)(1)(B)(ii)); 

12 (V) section 202(e) of such Act 

13 (42 U.S.C. 402(e)); 

14 (VI) section 202(f) of such Act 

15 (42 U.S.C. 402(f)); 

16 (VII) section 202(g) of such Act 

17 (42 U.S.C. 402(g)); 

18 (VIII) section 202(h) of such Act 

19 (42 U.S.C. 402(h)); 

20 (IX) section 223(a) of such Act 

21 (42 U.S.C. 423(a)); 

22 (X) section 227 of such Act (42 

23 U.S.C. 427); or 

24 (XI) section 228 of such Act (42 

25 U.S.C. 428). 


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1 (ii) RAILROAD RETIREMENT BEN2 EFIT.—A benefit payment described in this 

3 clause is a monthly annuity or pension 

4 payment payable (without regard to section 

5 5(a)(ii) of the Railroad Retirement Act of 

6 1974 (45 U.S.C. 231d(a)(ii)) under— 

7 (I) section 2(a)(1) of such Act 

8 (45 U.S.C. 231a(a)(1)); 

9 (II) section 2(c) of such Act (45 

10 U.S.C. 231a(c)); 

11 (III) section 2(d)(1)(i) of such 

12 Act (45 U.S.C. 231a(d)(1)(i)); 

13 (IV) section 2(d)(1)(ii) of such 

14 Act (45 U.S.C. 231a(d)(1)(ii)); 

15 (V) section 2(d)(1)(iii)(C) of such 

16 Act to an adult disabled child (45 

17 U.S.C. 231a(d)(1)(iii)(C)); 

18 (VI) section 2(d)(1)(iv) of such 

19 Act (45 U.S.C. 231a(d)(1)(iv)); 

20 (VII) section 2(d)(1)(v) of such 

21 Act (45 U.S.C. 231a(d)(1)(v)); or 

22 (VIII) section 7(b)(2) of such Act 

23 (45 U.S.C. 231f(b)(2)) with respect to 

24 any of the benefit payments described 

25 in clause (i) of this subparagraph. 


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1 (iii) VETERANS BENEFIT.—A benefit 

2 payment described in this clause is a com3 pensation or pension payment payable 

4 under— 

5 (I) section 1110, 1117, 1121, 

6 1131, 1141, or 1151 of title 38, 

7 United States Code; 

8 (II) section 1310, 1312, 1313, 

9 1315, 1316, or 1318 of title 38, 

10 United States Code; 

11 (III) section 1513, 1521, 1533, 

12 1536, 1537, 1541, 1542, or 1562 of 

13 title 38, United States Code; or 

14 (IV) section 1805, 1815, or 1821 

15 of title 38, United States Code, 

16 to a veteran, surviving spouse, child, or 

17 parent as described in paragraph (2), (3), 

18 (4)(A)(ii), or (5) of section 101, title 38, 

19 United States Code, who received that ben20 efit during any month within the 3 month 

21 period ending with the month which ends 

22 prior to the month that includes the date 

23 of the enactment of this Act. 

24 (C) SSI CASH BENEFIT DESCRIBED.—A 

25 SSI cash benefit described in this subparagraph 


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1 is a cash benefit payable under section 1611 

2 (other than under subsection (e)(1)(B) of such 

3 section) or 1619(a) of the Social Security Act 

4 (42 U.S.C. 1382, 1382h). 

5 (2) REQUIREMENT.—A payment shall be made 

6 under paragraph (1) only to individuals who reside 

7 in 1 of the 50 States, the District of Columbia, 

8 Puerto Rico, Guam, the United States Virgin Is9 lands, American Samoa, or the Northern Mariana 

10 Islands. For purposes of the preceding sentence, the 

11 determination of the individual’s residence shall be 

12 based on the current address of record under a pro13 gram specified in paragraph (1). 

14 (3) NO DOUBLE PAYMENTS.—An individual 

15 shall be paid only 1 payment under this section, re16 gardless of whether the individual is entitled to, or 

17 eligible for, more than 1 benefit or cash payment de18 scribed in paragraph (1). 

19 (4) LIMITATION.—A payment under this section 

20 shall not be made— 

21 (A) in the case of an individual entitled to 

22 a benefit specified in paragraph (1)(B)(i) or 

23 paragraph (1)(B)(ii)(VIII) if, for the most re24 cent month of such individual’s entitlement in 

25 the 3-month period described in paragraph (1), 


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AMDT. NO. 570 

1 such individual’s benefit under such paragraph 

2 was not payable by reason of subsection (x) or 

3 (y) of section 202 the Social Security Act (42 

4 U.S.C. 402) or section 1129A of such Act (42 

5 U.S.C. 1320a-8a); 

6 (B) in the case of an individual entitled to 

7 a benefit specified in paragraph (1)(B)(iii) if, 

8 for the most recent month of such individual’s 

9 entitlement in the 3 month period described in 

10 paragraph (1), such individual’s benefit under 

11 such paragraph was not payable, or was re12 duced, by reason of section 1505, 5313, or 

13 5313B of title 38, United States Code; 

14 (C) in the case of an individual entitled to 

15 a benefit specified in paragraph (1)(C) if, for 

16 such most recent month, such individual’s ben17 efit under such paragraph was not payable by 

18 reason of subsection (e)(1)(A) or (e)(4) of sec19 tion 1611 (42 U.S.C. 1382) or section 1129A 

20 of such Act (42 U.S.C. 1320a-8a); or 

21 (D) in the case of any individual whose 

22 date of death occurs before the date on which 

23 the individual is certified under subsection (b) 

24 to receive a payment under this section. 

25 (5) TIMING AND MANNER OF PAYMENTS.— 


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AMDT. NO. 570 

1 (A) IN GENERAL.—The Secretary of the 

2 Treasury shall commence making payments 

3 under this section at the earliest practicable 

4 date but in no event later than 120 days after 

5 the date of enactment of this Act. The Sec6 retary of the Treasury may make any payment 

7 electronically to an individual in such manner 

8 as if such payment was a benefit payment or 

9 cash benefit to such individual under the appli10 cable program described in subparagraph (B) 

11 or (C) of paragraph (1). 

12 (B) DEADLINE.—No payments shall be 

13 made under this section after December 31, 

14 2010, regardless of any determinations of enti15 tlement to, or eligibility for, such payments 

16 made after such date. 

17 (b) IDENTIFICATION OF RECIPIENTS.—The Commis18 sioner of Social Security, the Railroad Retirement Board, 

19 and the Secretary of Veterans Affairs shall certify the in20 dividuals entitled to receive payments under this section 

21 and provide the Secretary of the Treasury with the infor22 mation needed to disburse such payments. A certification 

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AMDT. NO. 570 

1 ment to, or eligibility for, a benefit specified in subpara2 graph (B) or (C) of subsection (a)(1). 

3 (c) TREATMENT OF PAYMENTS.— 

4 (1) PAYMENT TO BE DISREGARDED FOR PUR5 POSES OF ALL FEDERAL AND FEDERALLY ASSISTED

6 PROGRAMS.—A payment under subsection (a) shall 

7 not be regarded as income and shall not be regarded 

8 as a resource for the month of receipt and the fol9 lowing 9 months, for purposes of determining the 

10 eligibility of the recipient (or the recipient’s spouse 

11 or family) for benefits or assistance, or the amount 

12 or extent of benefits or assistance, under any Fed13 eral program or under any State or local program fi14 nanced in whole or in part with Federal funds. 

15 (2) PAYMENT NOT CONSIDERED INCOME FOR

16 PURPOSES OF TAXATION.—A payment under sub17 section (a) shall not be considered as gross income 

18 for purposes of the Internal Revenue Code of 1986. 

19 (3) PAYMENTS PROTECTED FROM ASSIGN20 MENT.—The provisions of sections 207 and 

21 1631(d)(1) of the Social Security Act (42 U.S.C. 

22 407, 1383(d)(1)), section 14(a) of the Railroad Re23 tirement Act of 1974 (45 U.S.C. 231m(a)), and sec24 tion 5301 of title 38, United States Code, shall 

25 apply to any payment made under subsection (a) as 


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AMDT. NO. 570 

1 if such payment was a benefit payment or cash ben2 efit to such individual under the applicable program 

3 described in subparagraph (B) or (C) of subsection 

4 (a)(1). 

5 (4) PAYMENTS SUBJECT TO OFFSET.—Notwith6 standing paragraph (3), for purposes of section 

7 3716 of title 31, United States Code, any payment 

8 made under this section shall not be considered a 

9 benefit payment or cash benefit made under the ap10 plicable program described in subparagraph (B) or 

11 (C) of subsection (a)(1) and all amounts paid shall 

12 be subject to offset to collect delinquent debts. 

13 (d) PAYMENT TO REPRESENTATIVE PAYEES AND FI14 DUCIARIES.— 

15 (1) IN GENERAL.—In any case in which an in16 dividual who is entitled to a payment under sub17 section (a) and whose benefit payment or cash ben18 efit described in paragraph (1) of that subsection is 

19 paid to a representative payee or fiduciary, the pay20 ment under subsection (a) shall be made to the indi21 vidual’s representative payee or fiduciary and the en22 tire payment shall be used only for the benefit of the 

23 individual who is entitled to the payment. 

24 (2) APPLICABILITY.— 


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1 (A) PAYMENT ON THE BASIS OF A TITLE

2 II OR SSI BENEFIT.—Section 1129(a)(3) of the 

3 Social Security Act (42 U.S.C. 1320a–8(a)(3)) 

4 shall apply to any payment made on the basis 

5 of an entitlement to a benefit specified in para6 graph (1)(B)(i) or (1)(C) of subsection (a) in 

7 the same manner as such section applies to a 

8 payment under title II or XVI of such Act. 

9 (B) PAYMENT ON THE BASIS OF A RAIL10 ROAD RETIREMENT BENEFIT.—Section 13 of 

11 the Railroad Retirement Act (45 U.S.C. 231l) 

12 shall apply to any payment made on the basis 

13 of an entitlement to a benefit specified in para14 graph (1)(B)(ii) of subsection (a) in the same 

15 manner as such section applies to a payment 

16 under such Act. 

17 (C) PAYMENT ON THE BASIS OF A VET18 ERANS BENEFIT.—Sections 5502, 6106, and 

19 6108 of title 38, United States Code, shall 

20 apply to any payment made on the basis of an 

21 entitlement to a benefit specified in paragraph 

22 (1)(B)(iii) of subsection (a) in the same manner 

23 as those sections apply to a payment under that 

24 title. 


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AMDT. NO. 570 

1 (e) APPROPRIATION.—Out of any sums in the Treas2 ury of the United States not otherwise appropriated, the 

3 following sums are appropriated for the period of fiscal 

4 years 2009 and 2010 to carry out this section: 

5 (1) For the Secretary of the Treasury— 

6 (A) such sums as may be necessary to 

7 make payments under this section; and 

8 (B) $57,000,000 for administrative costs 

9 incurred in carrying out this section and section 

10 36A of the Internal Revenue Code of 1986 (as 

11 added by this Act). 

12 (2) For the Commissioner of Social Security, 

13 $90,000,000 for the Social Security Administration’s 

14 Limitation on Administrative Expenses for costs in15 curred in carrying out this section. 

16 (3) For the Railroad Retirement Board, 

17 $1,000,000 for administrative costs incurred in car18 rying out this section. 

19 (4) For the Secretary of Veterans Affairs, 

20 $100,000 for the Information Systems Technology 

21 account and $7,100,000 for the General Operating 

22 Expenses account for administrative costs incurred 

23 in carrying out this section. 


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1 Subtitle H—Trade Adjustment 

2 Assistance 

3 SEC. 1701. TEMPORARY EXTENSION OF TRADE ADJUST4 MENT ASSISTANCE PROGRAM. 

5 (a) ASSISTANCE FOR WORKERS.— 

6 (1) IN GENERAL.—Section 245(a) of the Trade 

7 Act of 1974 (19 U.S.C. 2317(a)) is amended by 

8 striking ‘‘December 31, 2007’’ and inserting ‘‘De9 cember 31, 2010’’. 

10 (2) ALTERNATIVE TRADE ADJUSTMENT ASSIST11 ANCE.—Section 246(b)(1) of the Trade Act of 1974 

12 (19 U.S.C. 2318(b)(1)) is amended by striking ‘‘5 

13 years’’ and inserting ‘‘7 years’’. 

14 (b) ASSISTANCE FOR FIRMS.—Section 256(b) of the 

15 Trade Act of 1974 (19 U.S.C. 2346(b)) is amended by 

16 striking ‘‘2007, and $4,000,000 for the 3-month period 

17 beginning on October 1, 2007,’’ and inserting ‘‘December 

18 31, 2010’’. 

19 (c) ASSISTANCE FOR FARMERS.—Section 298(a) of 

20 the Trade Act of 1974 (19 U.S.C. 2401g(a)) is amended 

21 by striking ‘‘through 2007’’ and all that follows through 

22 the end period and inserting ‘‘through December 31, 2010 

23 to carry out the purposes of this chapter.’’. 

24 (d) EXTENSION OF TERMINATION DATES.—Section 

25 285 of the Trade Act of 1974 (19 U.S.C. 2271 note) is 


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AMDT. NO. 570 

1 amended by striking ‘‘December 31, 2007’’ each place it 

2 appears and inserting ‘‘December 31, 2010’’. 

3 (e) SENSE OF THE SENATE REGARDING ADJUST4 MENT ASSISTANCE FOR COMMUNITIES.—It is the sense 

5 of the Senate that title II of the Trade Act of 1974 (19 

6 U.S.C. 2271 et seq.) should be amended to assist any com7 munity impacted by trade with economic adjustment 

8 through— 

9 (1) the coordination of efforts by State and 

10 local governments and economic organizations; 

11 (2) the coordination of Federal, State, and local 

12 resources; 

13 (3) the creation of community-based develop14 ment strategies; and 

15 (4) the development and provision of training 

16 programs. 

17 (f) EFFECTIVE DATE.—The amendments made by 

18 this 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 

10 nor 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 

17 are not parties to the North American Free Trade 

18 Agreement in an attempt to recoup any payments 

19 described 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 


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1 title VII of the Deficit Reduction Act of 2005 (Public Law 

2 109–171; 120 Stat. 154))) that were— 

3 (1) assessed and paid on imports of goods from 

4 countries that are parties to the North American 

5 Free Trade Agreement; and 

6 (2) distributed on or after January 1, 2001, 

7 and before January 1, 2006. 

8 (c) PAYMENT OF FUNDS COLLECTED OR WITH9 HELD.—Not later than the date that is 60 days after the 

10 date of the enactment of this Act, the Secretary of Home11 land Security 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 

17 Protection is withholding as an offset as described in 

18 subsection (a)(2). 

19 (d) LIMITATION.—Nothing in this section shall be 

20 construed to prevent the Secretary of Homeland Security, 

21 or any other person, from requiring repayment of, or at22 tempting to otherwise recoup, any payments described in 

23 subsection (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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AMDT. NO. 570 

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 

11 defined in section 54C of the Internal Revenue Code 

12 of 1986) issued after the date of the enactment of 

13 this 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 

17 this Act, 

18 (3) any qualified zone academy bond (as de19 fined in section 54E of the Internal Revenue Code 

20 of 1986) issued after the date of the enactment of 

21 this Act, 

22 (4) any qualified school construction bond (as 

23 defined in section 54F of the Internal Revenue Code 

24 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 

6 States Code, is amended by striking out the dollar limita7 tion contained 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, 

12 the credit determined under section 42 of the Internal 

13 Revenue Code of 1986 for the taxpayer’s first three tax14 able years beginning after December 31, 2008, in which 

15 credits are allowable for any non-federally subsidized low16 income housing project initially placed in service after 

17 such date— 

18 (1) with respect to initial investments made 

19 pursuant to a binding agreement by such taxpayer 

20 after December 31, 2008, and before January 1, 

21 2011, and 

22 (2) only from allocations of a State housing 

23 credit ceiling before 2011, 

24 shall be 200 percent of the amount which would (but for 

25 this subsection) be so allowable. 


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1 (b) ELIGIBILITY FOR ELECTION.—The election under 

2 subsection (a) shall take effect with respect to the first 

3 taxable year referred to in such subsection only when all 

4 rental requirements pursuant to section 42(g)(1) of the 

5 Internal Revenue Code of 1986 have been met with respect 

6 to such low-income housing project. 

7 (c) REDUCTION IN AGGREGATE CREDIT TO REFLECT

8 ACCELERATED CREDIT.—The aggregate credit allowable 

9 to any taxpayer under section 42 of the Internal Revenue 

10 Code of 1986 with respect to any investment for taxable 

11 years after the first three taxable years referred to in sub12 section (a) shall be reduced on a pro rata basis by the 

13 amount of the increased credit allowable by reason of sub14 section (a) with respect to such first three taxable years. 

15 The preceding sentence shall not be construed to affect 

16 whether any taxable year is part of the credit, compliance, 

17 or extended use periods under such section 42. 

18 (d) ELECTION.—The election under subsection (a) 

19 shall be made at the time and in the manner prescribed 

20 by the Secretary of the Treasury or the Secretary’s dele21 gate, and, once made, shall be irrevocable. In the case of 

22 a partnership, such election shall be made by the partner23 ship. 


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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 

6 ‘‘Assistance for Unemployed Workers and Struggling 

7 Families 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- 

2 449; 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 

6 striking ‘‘MARCH 31, 2009’’ and inserting ‘‘DECEM7 BER 31, 2009’’; and 

8 (3) in subsection (b)(3), by striking ‘‘August 

9 27, 2009’’ and inserting ‘‘May 31, 2010’’. 

10 (b) FINANCING PROVISIONS.—Section 4004 of such 

11 Act 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 

15 funds not otherwise appropriated)— 

16 ‘‘(1) to the extended unemployment compensa17 tion account (as established by section 905 of the 

18 Social Security Act) such sums as the Secretary of 

19 Labor estimates to be necessary to make payments 

20 to States under this title by reason of the amend21 ments made by section 2001(a) of the Assistance for 

22 Unemployed Workers and Struggling Families Act; 

23 and 

24 ‘‘(2) to the employment security administration 

25 account (as established by section 901 of the Social 


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1 Security Act) such sums as the Secretary of Labor 

2 estimates to be necessary for purposes of assisting 

3 States in meeting administrative costs by reason of 

4 the amendments referred to in paragraph (1). 

5 There are appropriated from the general fund of the 

6 Treasury, without fiscal year limitation, the sums referred 

7 to in the preceding sentence and such sums shall not be 

8 required to be repaid.’’. 

9 SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION 

10 BENEFITS. 

11 (a) FEDERAL-STATE AGREEMENTS.—Any State 

12 which desires to do so may enter into and participate in 

13 an agreement under this section with the Secretary of 

14 Labor (hereinafter in this section referred to as the ‘‘Sec15 retary’’). Any State which is a party to an agreement 

16 under this section may, upon providing 30 days’ written 

17 notice to the Secretary, terminate such agreement. 

18 (b) PROVISIONS OF AGREEMENT.— 

19 (1) ADDITIONAL COMPENSATION.—Any agree20 ment under this section shall provide that the State 

21 agency of the State will make payments of regular 

22 compensation to individuals in amounts and to the 

23 extent that they would be determined if the State 

24 law of the State were applied, with respect to any 

25 week for which the individual is (disregarding this 


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1 section) otherwise entitled under the State law to re2 ceive regular compensation, as if such State law had 

3 been modified in a manner such that the amount of 

4 regular compensation (including dependents’ allow5 ances) payable for any week shall be equal to the 

6 amount determined under the State law (before the 

7 application of this paragraph) plus an additional 

8 $25. 

9 (2) ALLOWABLE METHODS OF PAYMENT.—Any 

10 additional compensation provided for in accordance 

11 with paragraph (1) shall be payable either— 

12 (A) as an amount which is paid at the 

13 same time and in the same manner as any reg14 ular compensation otherwise payable for the 

15 week involved; or 

16 (B) at the option of the State, by pay17 ments which are made separately from, but on 

18 the same weekly basis as, any regular com19 pensation otherwise payable. 

20 (c) NONREDUCTION RULE.—An agreement under 

21 this section shall not apply (or shall cease to apply) with 

22 respect to a State upon a determination by the Secretary 

23 that the method governing the computation of regular 

24 compensation under the State law of that State has been 

25 modified in a manner such that— 


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1 (1) the average weekly benefit amount of reg2 ular compensation which will be payable during the 

3 period of the agreement (determined disregarding 

4 any additional amounts attributable to the modifica5 tion described in subsection (b)(1)) will be less than 

6 (2) the average weekly benefit amount of reg7 ular compensation which would otherwise have been 

8 payable during such period under the State law, as 

9 in effect on December 31, 2008. 

10 (d) PAYMENTS TO STATES.— 

11 (1) IN GENERAL.— 

12 (A) FULL REIMBURSEMENT.—There shall 

13 be paid to each State which has entered into an 

14 agreement under this section an amount equal 

15 to 100 percent of— 

16 (i) the total amount of additional 

17 compensation (as described in subsection 

18 (b)(1)) paid to individuals by the State 

19 pursuant to such agreement; and 

20 (ii) any additional administrative ex21 penses incurred by the State by reason of 

22 such agreement (as determined by the Sec23 retary). 

24 (B) TERMS OF PAYMENTS.—Sums payable 

25 to any State by reason of such State’s having 


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1 an agreement under this section shall be pay2 able, either in advance or by way of reimburse3 ment (as determined by the Secretary), in such 

4 amounts as the Secretary estimates the State 

5 will be entitled to receive under this section for 

6 each calendar month, reduced or increased, as 

7 the case may be, by any amount by which the 

8 Secretary finds that his estimates for any prior 

9 calendar month were greater or less than the 

10 amounts which should have been paid to the 

11 State. Such estimates may be made on the 

12 basis of such statistical, sampling, or other 

13 method as may be agreed upon by the Secretary 

14 and the State agency of the State involved. 

15 (2) CERTIFICATIONS.—The Secretary shall 

16 from time to time certify to the Secretary of the 

17 Treasury for payment to each State the sums pay18 able to such State under this section. 

19 (3) APPROPRIATION.—There are appropriated 

20 from the general fund of the Treasury, without fiscal 

21 year limitation, such sums as may be necessary for 

22 purposes of this subsection. 

23 (e) APPLICABILITY.— 


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1 (1) IN GENERAL.—An agreement entered into 

2 under this section shall apply to weeks of unemploy3 ment— 

4 (A) beginning after the date on which such 

5 agreement is entered into; and 

6 (B) ending before January 1, 2010. 

7 (2) TRANSITION RULE FOR INDIVIDUALS RE8 MAINING ENTITLED TO REGULAR COMPENSATION AS

9 OF JANUARY 1, 2010.—In the case of any individual 

10 who, as of the date specified in paragraph (1)(B), 

11 has not yet exhausted all rights to regular com12 pensation under the State law of a State with re13 spect to a benefit year that began before such date, 

14 additional compensation (as described in subsection 

15 (b)(1)) shall continue to be payable to such indi16 vidual for any week beginning on or after such date 

17 for which the individual is otherwise eligible for reg18 ular compensation with respect to such benefit year. 

19 (3) TERMINATION.—Notwithstanding any other 

20 provision of this subsection, no additional compensa21 tion (as described in subsection (b)(1)) shall be pay22 able for any week beginning after June 30, 2010. 

23 (f) FRAUD AND OVERPAYMENTS.—The provisions of 

24 section 4005 of the Supplemental Appropriations Act, 

25 2008 (Public Law 110–252; 122 Stat. 2356) shall apply 


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1 with respect to additional compensation (as described in 

2 subsection (b)(1)) to the same extent and in the same 

3 manner as in the case of emergency unemployment com4 pensation. 

5 (g) APPLICATION TO OTHER UNEMPLOYMENT BENE6 FITS.— 

7 (1) IN GENERAL.—Each agreement under this 

8 section shall include provisions to provide that the 

9 purposes of the preceding provisions of this section 

10 shall be applied with respect to unemployment bene11 fits described in subsection (i)(3) to the same extent 

12 and in the same manner as if those benefits were 

13 regular compensation. 

14 (2) ELIGIBILITY AND TERMINATION RULES.— 

15 Additional compensation (as described in subsection 

16 (b)(1))— 

17 (A) shall not be payable, pursuant to this 

18 subsection, with respect to any unemployment 

19 benefits described in subsection (i)(3) for any 

20 week beginning on or after the date specified in 

21 subsection (e)(1)(B), except in the case of an 

22 individual who was eligible to receive additional 

23 compensation (as so described) in connection 

24 with any regular compensation or any unem25 ployment benefits described in subsection (i)(3) 


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1 for any period of unemployment ending before 

2 such date; and 

3 (B) shall in no event be payable for any 

4 week beginning after the date specified in sub5 section (e)(3). 

6 (h) DISREGARD OF ADDITIONAL COMPENSATION FOR

7 PURPOSES OF MEDICAID AND SCHIP.—A State that en8 ters into an agreement under this section shall disregard 

9 the monthly equivalent of $25 per week for any individual 

10 who receives additional compensation under subsection 

11 (b)(1) in considering the amount of income of the indi12 vidual for any purposes under the Medicaid program 

13 under title XIX of the Social Security Act and the State 

14 Children’s Health Insurance Program under title XXI of 

15 such Act. 

16 (i) DEFINITIONS.—For purposes of this section— 

17 (1) the terms ‘‘compensation’’, ‘‘regular com18 pensation’’, ‘‘benefit year’’, ‘‘State’’, ‘‘State agency’’, 

19 ‘‘State law’’, and ‘‘week’’ have the respective mean20 ings given such terms under section 205 of the Fed21 eral-State Extended Unemployment Compensation 

22 Act of 1970 (26 U.S.C. 3304 note); 

23 (2) the term ‘‘emergency unemployment com24 pensation’’ means emergency unemployment com25 pensation under title IV of the Supplemental ApproVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00596 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 priations Act, 2008 (Public Law 110–252; 122 Stat. 

2 2353); and 

3 (3) any reference to unemployment benefits de4 scribed in this paragraph shall be considered to refer 

5 to— 

6 (A) extended compensation (as defined by 

7 section 205 of the Federal-State Extended Un8 employment Compensation Act of 1970); and 

9 (B) unemployment compensation (as de10 fined by section 85(b) of the Internal Revenue 

11 Code of 1986) provided under any program ad12 ministered by a State under an agreement with 

13 the Secretary. 

14 SEC. 2003. UNEMPLOYMENT COMPENSATION MODERNIZA15 TION. 

16 (a) IN GENERAL.—Section 903 of the Social Security 

17 Act (42 U.S.C. 1103) is amended by adding at the end 

18 the following: 

19 ‘‘Special Transfers for Modernization 

20 ‘‘(f)(1)(A) In addition to any other amounts, the Sec21 retary of Labor shall provide for the making of unemploy22 ment compensation modernization incentive payments 

23 (hereinafter ‘incentive payments’) to the accounts of the 

24 States in the Unemployment Trust Fund, by transfer from 

25 amounts reserved for that purpose in the Federal unemVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00597 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ployment account, in accordance with succeeding provi2 sions of this subsection. 

3 ‘‘(B) The maximum incentive payment allowable 

4 under this subsection with respect to any State shall, as 

5 determined by the Secretary of Labor, be equal to the 

6 amount obtained by multiplying $7,000,000,000 by the 

7 same ratio as would apply under subsection (a)(2)(B) for 

8 purposes of determining such State’s share of any excess 

9 amount (as described in subsection (a)(1)) that would 

10 have been subject to transfer to State accounts, as of Oc11 tober 1, 2008, under the provisions of subsection (a). 

12 ‘‘(C) Of the maximum incentive payment determined 

13 under subparagraph (B) with respect to a State— 

14 ‘‘(i) one-third shall be transferred to the ac15 count of such State upon a certification under para16 graph (4)(B) that the State law of such State meets 

17 the requirements of paragraph (2); and 

18 ‘‘(ii) the remainder shall be transferred to the 

19 account of such State upon a certification under 

20 paragraph (4)(B) that the State law of such State 

21 meets the requirements of paragraph (3). 

22 ‘‘(2) The State law of a State meets the requirements 

23 of this paragraph if such State law— 

24 ‘‘(A) uses a base period that includes the most 

25 recently completed calendar quarter before the start 


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1 of the benefit year for purposes of determining eligi2 bility for unemployment compensation; or 

3 ‘‘(B) provides that, in the case of an individual 

4 who would not otherwise be eligible for unemploy5 ment compensation under the State law because of 

6 the use of a base period that does not include the 

7 most recently completed calendar quarter before the 

8 start of the benefit year, eligibility shall be deter9 mined using a base period that includes such cal10 endar quarter. 

11 ‘‘(3) The State law of a State meets the requirements 

12 of this paragraph if such State law includes provisions to 

13 carry out at least 2 of the following subparagraphs: 

14 ‘‘(A) An individual shall not be denied regular 

15 unemployment compensation under any State law 

16 provisions relating to availability for work, active 

17 search for work, or refusal to accept work, solely be18 cause such individual is seeking only part-time (and 

19 not full-time) work, except that the State law provi20 sions carrying out this subparagraph may exclude an 

21 individual if a majority of the weeks of work in such 

22 individual’s base period do not include part-time 

23 work. 

24 ‘‘(B) An individual shall not be disqualified 

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1 rating from employment if that separation is for any 

2 compelling family reason. For purposes of this sub3 paragraph, the term ‘compelling family reason’ 

4 means the following: 

5 ‘‘(i) Domestic violence, verified by such 

6 reasonable and confidential documentation as 

7 the State law may require, which causes the in8 dividual reasonably to believe that such individ9 ual’s continued employment would jeopardize 

10 the safety of the individual or of any member 

11 of the individual’s immediate family (as defined 

12 by the Secretary of Labor). 

13 ‘‘(ii) The illness or disability of a member 

14 of the individual’s immediate family (as defined 

15 by the Secretary of Labor). 

16 ‘‘(iii) The need for the individual to accom17 pany such individual’s spouse— 

18 ‘‘(I) to a place from which it is im19 practical for such individual to commute; 

20 and 

21 ‘‘(II) due to a change in location of 

22 the spouse’s employment. 

23 ‘‘(C) Weekly unemployment compensation is 

24 payable under this subparagraph to any individual 

25 who is unemployed (as determined under the State 


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1 unemployment compensation law), has exhausted all 

2 rights to regular unemployment compensation under 

3 the State law, and is enrolled and making satisfac4 tory progress in a State-approved training program 

5 or in a job training program authorized under the 

6 Workforce Investment Act of 1998. Such programs 

7 shall prepare individuals who have been separated 

8 from a declining occupation, or who have been invol9 untarily and indefinitely separated from employment 

10 as a result of a permanent reduction of operations 

11 at the individual’s place of employment, for entry 

12 into a high-demand occupation. The amount of un13 employment compensation payable under this sub14 paragraph to an individual for a week of unemploy15 ment shall be equal to the individual’s average week16 ly benefit amount (including dependents’ allowances) 

17 for the most recent benefit year, and the total 

18 amount of unemployment compensation payable 

19 under this subparagraph to any individual shall be 

20 equal to at least 26 times the individual’s average 

21 weekly benefit amount (including dependents’ allow22 ances) for the most recent benefit year. 

23 ‘‘(D) Dependents’ allowances are provided, in 

24 the case of any individual who is entitled to receive 

25 regular unemployment compensation and who has 


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1 any dependents (as defined by State law), in an 

2 amount equal to at least $15 per dependent per 

3 week, subject to any aggregate limitation on such al4 lowances which the State law may establish (but 

5 which aggregate limitation on the total allowance for 

6 dependents paid to an individual may not be less 

7 than $50 for each week of unemployment or 50 per8 cent of the individual’s weekly benefit amount for 

9 the benefit year, whichever is less). 

10 ‘‘(4)(A) Any State seeking an incentive payment 

11 under this subsection shall submit an application therefor 

12 at such time, in such manner, and complete with such in13 formation as the Secretary of Labor may within 60 days 

14 after the date of the enactment of this subsection prescribe 

15 (whether by regulation or otherwise), including informa16 tion relating to compliance with the requirements of para17 graph (2) or (3), as well as how the State intends to use 

18 the incentive payment to improve or strengthen the State’s 

19 unemployment compensation program. The Secretary of 

20 Labor shall, within 30 days after receiving a complete ap21 plication, notify the State agency of the State of the Sec22 retary’s findings with respect to the requirements of para23 graph (2) or (3) (or both). 

24 ‘‘(B)(i) If the Secretary of Labor finds that the State 

25 law provisions (disregarding any State law provisions 


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1 which are not then currently in effect as permanent law 

2 or which are subject to discontinuation) meet the require3 ments of paragraph (2) or (3), as the case may be, the 

4 Secretary of Labor shall thereupon make a certification 

5 to that effect to the Secretary of the Treasury, together 

6 with a certification as to the amount of the incentive pay7 ment to be transferred to the State account pursuant to 

8 that finding. The Secretary of the Treasury shall make 

9 the appropriate transfer within 7 days after receiving such 

10 certification. 

11 ‘‘(ii) For purposes of clause (i), State law provisions 

12 which are to take effect within 12 months after the date 

13 of their certification under this subparagraph shall be con14 sidered to be in effect as of the date of such certification. 

15 ‘‘(C)(i) No certification of compliance with the re16 quirements of paragraph (2) or (3) may be made with re17 spect to any State whose State law is not otherwise eligible 

18 for certification under section 303 or approvable under 

19 section 3304 of the Federal Unemployment Tax Act. 

20 ‘‘(ii) No certification of compliance with the require21 ments of paragraph (3) may be made with respect to any 

22 State whose State law is not in compliance with the re23 quirements of paragraph (2). 

24 ‘‘(iii) No application under subparagraph (A) may be 

25 considered if submitted before the date of the enactment 


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1 of this subsection or after the latest date necessary (as 

2 specified by the Secretary of Labor) to ensure that all in3 centive payments under this subsection are made before 

4 October 1, 2010. In the case of a State in which the first 

5 day of the first regularly scheduled session of the State 

6 legislature beginning after the date of enactment of this 

7 subsection begins after December 31, 2010, the preceding 

8 sentence shall be applied by substituting ‘October 1, 2011’ 

9 for ‘October 1, 2010’. 

10 ‘‘(5)(A) Except as provided in subparagraph (B), any 

11 amount transferred to the account of a State under this 

12 subsection may be used by such State only in the payment 

13 of cash benefits to individuals with respect to their unem14 ployment (including for dependents’ allowances and for 

15 unemployment compensation under paragraph (3)(C)), ex16 clusive of expenses of administration. 

17 ‘‘(B) A State may, subject to the same conditions as 

18 set forth in subsection (c)(2) (excluding subparagraph (B) 

19 thereof, and deeming the reference to ‘subsections (a) and 

20 (b)’ in subparagraph (D) thereof to include this sub21 section), use any amount transferred to the account of 

22 such State under this subsection for the administration 

23 of its unemployment compensation law and public employ24 ment offices. 


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1 ‘‘(6) Out of any money in the Federal unemployment 

2 account not otherwise appropriated, the Secretary of the 

3 Treasury shall reserve $7,000,000,000 for incentive pay4 ments under this subsection. Any amount so reserved shall 

5 not be taken into account for purposes of any determina6 tion under section 902, 910, or 1203 of the amount in 

7 the Federal unemployment account as of any given time. 

8 Any amount so reserved for which the Secretary of the 

9 Treasury has not received a certification under paragraph 

10 (4)(B) by the deadline described in paragraph (4)(C)(iii) 

11 shall, upon the close of fiscal year 2011, become unre12 stricted as to use as part of the Federal unemployment 

13 account. 

14 ‘‘(7) For purposes of this subsection, the terms ‘ben15 efit year’, ‘base period’, and ‘week’ have the respective 

16 meanings given such terms under section 205 of the Fed17 eral-State Extended Unemployment Compensation Act of 

18 1970 (26 U.S.C. 3304 note). 

19 ‘‘Special Transfer in Fiscal Year 2009 for Administration 

20 ‘‘(g)(1) In addition to any other amounts, the Sec21 retary of the Treasury shall transfer from the employment 

22 security administration account to the account of each 

23 State in the Unemployment Trust Fund, within 30 days 

24 after the date of the enactment of this subsection, the 


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1 amount determined with respect to such State under para2 graph (2). 

3 ‘‘(2) The amount to be transferred under this sub4 section to a State account shall (as determined by the Sec5 retary of Labor and certified by such Secretary to the Sec6 retary of the Treasury) be equal to the amount obtained 

7 by multiplying $500,000,000 by the same ratio as deter8 mined under subsection (f)(1)(B) with respect to such 

9 State. 

10 ‘‘(3) Any amount transferred to the account of a 

11 State as a result of the enactment of this subsection may 

12 be used by the State agency of such State only in the pay13 ment of expenses incurred by it for— 

14 ‘‘(A) the administration of the provisions of its 

15 State law carrying out the purposes of subsection 

16 (f)(2) or any subparagraph of subsection (f)(3); 

17 ‘‘(B) improved outreach to individuals who 

18 might be eligible for regular unemployment com19 pensation by virtue of any provisions of the State 

20 law which are described in subparagraph (A); 

21 ‘‘(C) the improvement of unemployment benefit 

22 and unemployment tax operations, including re23 sponding to increased demand for unemployment 

24 compensation; and 


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1 ‘‘(D) staff-assisted reemployment services for 

2 unemployment compensation claimants.’’. 

3 (b) REGULATIONS.—The Secretary of Labor may 

4 prescribe any regulations, operating instructions, or other 

5 guidance necessary to carry out the amendment made by 

6 subsection (a). 

7 SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH AD8 VANCES. 

9 Section 1202(b) of the Social Security Act (42 U.S.C. 

10 1322(b)) is amended by adding at the end the following 

11 new paragraph: 

12 ‘‘(10)(A) With respect to the period beginning on the 

13 date of enactment of this paragraph and ending on De14 cember 31, 2010— 

15 ‘‘(i) any interest payment otherwise due from a 

16 State under this subsection during such period shall 

17 be deemed to have been made by the State; and 

18 ‘‘(ii) no interest shall accrue on any advance or 

19 advances made under section 1201 to a State during 

20 such period. 

21 ‘‘(B) The provisions of subparagraph (A) shall have 

22 no effect on the requirement for interest payments under 

23 this subsection after the period described in such subpara24 graph or on the accrual of interest under this subsection 

25 after such period.’’. 


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1 Subtitle B—Assistance for 

2 Vulnerable Individuals 

3 SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM. 

4 (a) TEMPORARY FUND.— 

5 (1) IN GENERAL.—Section 403 of the Social 

6 Security Act (42 U.S.C. 603) is amended by adding 

7 at the end the following: 

8 ‘‘(c) EMERGENCY FUND.— 

9 ‘‘(1) ESTABLISHMENT.—There is established in 

10 the Treasury of the United States a fund which 

11 shall be known as the ‘Emergency Contingency 

12 Fund for State Temporary Assistance for Needy 

13 Families Programs’ (in this subsection referred to as 

14 the ‘Emergency Fund’). 

15 ‘‘(2) DEPOSITS INTO FUND.— 

16 ‘‘(A) IN GENERAL.—Out of any money in 

17 the Treasury of the United States not otherwise 

18 appropriated, there are appropriated for fiscal 

19 year 2009, $3,000,000,000 for payment to the 

20 Emergency Fund. 

21 ‘‘(B) AVAILABILITY AND USE OF FUNDS.— 

22 The amounts appropriated to the Emergency 

23 Fund under subparagraph (A) shall remain 

24 available through fiscal year 2010 and shall be 

25 used to make grants to States in each of fiscal 


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1 years 2009 and 2010 in accordance with the re2 quirements of paragraph (3). 

3 ‘‘(C) LIMITATION.—In no case may the 

4 Secretary make a grant from the Emergency 

5 Fund for a fiscal year after fiscal year 2010. 

6 ‘‘(3) GRANTS.— 

7 ‘‘(A) GRANT RELATED TO CASELOAD IN8 CREASES.— 

9 ‘‘(i) IN GENERAL.—For each calendar 

10 quarter in fiscal year 2009 or 2010, the 

11 Secretary shall make a grant from the 

12 Emergency Fund to each State that— 

13 ‘‘(I) requests a grant under this 

14 subparagraph for the quarter; and 

15 ‘‘(II) meets the requirement of 

16 clause (ii) for the quarter. 

17 ‘‘(ii) CASELOAD INCREASE REQUIRE18 MENT.—A State meets the requirement of 

19 this clause for a quarter if the average 

20 monthly assistance caseload of the State 

21 for the quarter exceeds the average month22 ly assistance caseload of the State for the 

23 corresponding quarter in the emergency 

24 fund base year of the State. 


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1 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

2 paragraph (5), the amount of the grant to 

3 be made to a State under this subpara4 graph for a quarter shall be 80 percent of 

5 the amount (if any) by which the total ex6 penditures of the State for basic assistance 

7 (as defined by the Secretary) in the quar8 ter, whether under the State program 

9 funded under this part or as qualified 

10 State expenditures, exceeds the total ex11 penditures of the State for such assistance 

12 for the corresponding quarter in the emer13 gency fund base year of the State. 

14 ‘‘(B) GRANT RELATED TO INCREASED EX15 PENDITURES FOR NON-RECURRENT SHORT

16 TERM BENEFITS.— 

17 ‘‘(i) IN GENERAL.—For each calendar 

18 quarter in fiscal year 2009 or 2010, the 

19 Secretary shall make a grant from the 

20 Emergency Fund to each State that— 

21 ‘‘(I) requests a grant under this 

22 subparagraph for the quarter; and 

23 ‘‘(II) meets the requirement of 

24 clause (ii) for the quarter. 


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AMDT. NO. 570 

1 ‘‘(ii) NON-RECURRENT SHORT TERM

2 EXPENDITURE REQUIREMENT.—A State 

3 meets the requirement of this clause for a 

4 quarter if the total expenditures of the 

5 State for non-recurrent short term benefits 

6 in the quarter, whether under the State 

7 program funded under this part or as 

8 qualified State expenditures, exceeds the 

9 total such expenditures of the State for 

10 non-recurrent short term benefits in the 

11 corresponding quarter in the emergency 

12 fund base year of the State. 

13 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

14 paragraph (5), the amount of the grant to 

15 be made to a State under this subpara16 graph for a quarter shall be an amount 

17 equal to 80 percent of the excess described 

18 in clause (ii). 

19 ‘‘(C) GRANT RELATED TO INCREASED EX20 PENDITURES FOR SUBSIDIZED EMPLOYMENT.— 

21 ‘‘(i) IN GENERAL.—For each calendar 

22 quarter in fiscal year 2009 or 2010, the 

23 Secretary shall make a grant from the 

24 Emergency Fund to each State that— 


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AMDT. NO. 570 

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) SUBSIDIZED EMPLOYMENT EX6 PENDITURE REQUIREMENT.—A State 

7 meets the requirement of this clause for a 

8 quarter if the total expenditures of the 

9 State for subsidized employment in the 

10 quarter, whether under the State program 

11 funded under this part or as qualified 

12 State expenditures, exceeds the total of 

13 such expenditures of the State in the cor14 responding quarter in the emergency fund 

15 base year of the State. 

16 ‘‘(iii) AMOUNT OF GRANT.—Subject to 

17 paragraph (5), the amount of the grant to 

18 be made to a State under this subpara19 graph for a quarter shall be an amount 

20 equal to 80 percent of the excess described 

21 in clause (ii). 

22 ‘‘(4) AUTHORITY TO MAKE NECESSARY ADJUST23 MENTS TO DATA AND COLLECT NEEDED DATA.—In 

24 determining the size of the caseload of a State and 

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1 recurrent short-term benefits, and subsidized em2 ployment, during any period for which the State re3 quests funds under this subsection, and during the 

4 emergency fund base year of the State, the Sec5 retary may make appropriate adjustments to the 

6 data to ensure that the data reflect expenditures 

7 under the State program funded under this part and 

8 qualified State expenditures. The Secretary may de9 velop a mechanism for collecting expenditure data, 

10 including procedures which allow States to make 

11 reasonable estimates, and may set deadlines for 

12 making revisions to the data. 

13 ‘‘(5) LIMITATION.—The total amount payable 

14 to a single State under subsection (b) and this sub15 section for a fiscal year shall not exceed 25 percent 

16 of the State family assistance grant. 

17 ‘‘(6) LIMITATIONS ON USE OF FUNDS.—A State 

18 to which an amount is paid under this subsection 

19 may use the amount only as authorized by section 

20 404. 

21 ‘‘(7) TIMING OF IMPLEMENTATION.—The Sec22 retary shall implement this subsection as quickly as 

23 reasonably possible, pursuant to appropriate guid24 ance to States. 

25 ‘‘(8) DEFINITIONS.—In this subsection: 


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1 ‘‘(A) AVERAGE MONTHLY ASSISTANCE

2 CASELOAD DEFINED.—The term ‘average 

3 monthly assistance caseload’ means, with re4 spect to a State and a quarter, the number of 

5 families receiving assistance during the quarter 

6 under the State program funded under this 

7 part or as qualified State expenditures, subject 

8 to adjustment under paragraph (4). 

9 ‘‘(B) EMERGENCY FUND BASE YEAR.— 

10 ‘‘(i) IN GENERAL.—The term ‘emer11 gency fund base year’ means, with respect 

12 to a State and a category described in 

13 clause (ii), whichever of fiscal year 2007 or 

14 2008 is the fiscal year in which the 

15 amount described by the category with re16 spect to the State is the lesser. 

17 ‘‘(ii) CATEGORIES DESCRIBED.—The 

18 categories described in this clause are the 

19 following: 

20 ‘‘(I) The average monthly assist21 ance caseload of the State. 

22 ‘‘(II) The total expenditures of 

23 the State for non-recurrent short term 

24 benefits, whether under the State proVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00614 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 gram funded under this part or as 

2 qualified State expenditures. 

3 ‘‘(III) The total expenditures of 

4 the State for subsidized employment, 

5 whether under the State program 

6 funded under this part or as qualified 

7 State expenditures. 

8 ‘‘(C) QUALIFIED STATE EXPENDITURES.— 

9 The term ‘qualified State expenditures’ has the 

10 meaning given the term in section 409(a)(7).’’. 

11 (2) REPEAL.—Effective October 1, 2010, sub12 section (c) of section 403 of the Social Security Act 

13 (42 U.S.C. 603) (as added by paragraph (1)) is re14 pealed. 

15 (b) TEMPORARY MODIFICATION OF CASELOAD RE16 DUCTION CREDIT.—Section 407(b)(3)(A)(i) of such Act 

17 (42 U.S.C. 607(b)(3)(A)(i)) is amended by inserting ‘‘(or 

18 if the immediately preceding fiscal year is fiscal year 2008, 

19 2009, or 2010, then, at State option, during the emer20 gency fund base year of the State with respect to the aver21 age monthly assistance caseload of the State (within the 

22 meaning of section 403(c)(8)(B), except that, if a State 

23 elects such option for fiscal year 2008, the emergency fund 

24 base year of the State with respect to such caseload shall 

25 be fiscal year 2007))’’ before ‘‘under the State’’. 


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AMDT. NO. 570 

1 (c) DISREGARD FROM LIMITATION ON TOTAL PAY2 MENTS TO TERRITORIES.—Section 1108(a)(2) of the So3 cial Security Act (42 U.S.C. 1308(a)(2)) is amended by 

4 inserting ‘‘403(c)(3),’’ after ‘‘403(a)(5),’’. 

5 (d) EFFECTIVE DATE.—The amendments made by 

6 this section shall take effect on the date of the enactment 

7 of this Act. 

8 SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS. 

9 (a) EXTENSION THROUGH FISCAL YEAR 2010.—Sec10 tion 7101(a) of the Deficit Reduction Act of 2005 (Public 

11 Law 109–171; 120 Stat. 135), as amended by section 

12 301(a) of the Medicare Improvements for Patients and 

13 Providers Act of 2008 (Public Law 110–275), is amended 

14 by striking ‘‘fiscal year 2009’’ and inserting ‘‘fiscal year 

15 2010’’. 

16 (b) CONFORMING AMENDMENT.—Section 

17 403(a)(3)(H)(ii) of the Social Security Act (42 U.S.C. 

18 603(a)(3)(H)(ii)) is amended to read as follows: 

19 ‘‘(ii) subparagraph (G) shall be ap20 plied as if ‘fiscal year 2010’ were sub21 stituted for ‘fiscal year 2001’; and’’. 


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AMDT. NO. 570 

1 SEC. 2103. CLARIFICATION OF AUTHORITY OF STATES TO 

2 USE TANF FUNDS CARRIED OVER FROM 

3 PRIOR YEARS TO PROVIDE TANF BENEFITS 

4 AND SERVICES. 

5 Section 404(e) of the Social Security Act (42 U.S.C. 

6 604(e)) is amended to read as follows: 

7 ‘‘(e) AUTHORITY TO CARRY OVER CERTAIN

8 AMOUNTS FOR BENEFITS OR SERVICES OR FOR FUTURE

9 CONTINGENCIES.—A State or tribe may use a grant made 

10 to the State or tribe under this part for any fiscal year 

11 to provide, without fiscal year limitation, any benefit or 

12 service that may be provided under the State or tribal pro13 gram funded under this part.’’. 

14 SEC. 2104. TEMPORARY REINSTATEMENT OF AUTHORITY 

15 TO PROVIDE FEDERAL MATCHING PAYMENTS 

16 FOR STATE SPENDING OF CHILD SUPPORT 

17 INCENTIVE PAYMENTS. 

18 During the period that begins on October 1, 2008, 

19 and ends on December 31, 2010, section 455(a)(1) of the 

20 Social Security Act (42 U.S.C. 655(a)(1)) shall be applied 

21 without regard to the amendment made by section 

22 7309(a) of the Deficit Reduction Act of 2005 (Public Law 

23 109–171, 120 Stat. 147). 


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AMDT. NO. 570 

1 TITLE III—HEALTH INSURANCE 

2 ASSISTANCE 

3 SEC. 3000. TABLE OF CONTENTS OF TITLE. 

4 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. 

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. 

5 Subtitle A—Premium Subsidies for 

6 COBRA Continuation Coverage 

7 for Unemployed Workers 

8 SEC. 3001. PREMIUM ASSISTANCE FOR COBRA BENEFITS. 

9 (a) TABLE OF CONTENTS OF SUBTITLE.—The table 

10 of contents of this subtitle is as follows: 

Sec. 3001. Premium assistance for COBRA benefits. 


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AMDT. NO. 570 

1 (b) PREMIUM ASSISTANCE FOR COBRA CONTINU2 ATION COVERAGE FOR UNEMPLOYED WORKERS AND

3 THEIR FAMILIES.— 

4 (1) PROVISION OF PREMIUM ASSISTANCE.— 

5 (A) REDUCTION OF PREMIUMS PAY6 ABLE.—In the case of any premium for a 

7 month of coverage beginning after the date of 

8 the enactment of the Act for COBRA continu9 ation coverage with respect to any assistance el10 igible individual, such individual shall be treated 

11 for purposes of any COBRA continuation provi12 sion as having paid the amount of such pre13 mium if such individual pays 50 percent of the 

14 amount of such premium (as determined with15 out regard to this subsection). 

16 (B) PLAN ENROLLMENT OPTION.— 

17 (i) IN GENERAL.—Notwithstanding 

18 the COBRA continuation provisions, an as19 sistance eligible individual may, not later 

20 than 90 days after the date of notice of the 

21 plan enrollment option described in this 

22 subparagraph, elect to enroll in coverage 

23 under a plan offered by the employer in24 volved, or the employee organization in25 volved (including, for this purpose, a joint 


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AMDT. NO. 570 

1 board of trustees of a multiemployer trust 

2 affiliated with one or more multiemployer 

3 plans), that is different than coverage 

4 under the plan in which such individual 

5 was enrolled at the time the qualifying 

6 event occurred, and such coverage shall be 

7 treated as COBRA continuation coverage 

8 for purposes of the applicable COBRA con9 tinuation coverage provision. 

10 (ii) REQUIREMENTS.—An assistance 

11 eligible individual may elect to enroll in 

12 different coverage as described in clause (i) 

13 only if— 

14 (I) the employer involved has 

15 made a determination that such em16 ployer will permit assistance eligible 

17 individuals to enroll in different cov18 erage as provided for this subpara19 graph; 

20 (II) the premium for such dif21 ferent coverage does not exceed the 

22 premium for coverage in which the in23 dividual was enrolled at the time the 

24 qualifying event occurred; 


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AMDT. NO. 570 

1 (III) the different coverage in 

2 which the individual elects to enroll is 

3 coverage that is also offered to the ac4 tive employees of the employer at the 

5 time at which such election is made; 

6 and 

7 (IV) the different coverage is 

8 not— 

9 (aa) coverage that provides 

10 only dental, vision, counseling, or 

11 referral services (or a combina12 tion of such services); 

13 (bb) a health flexible spend14 ing account or health reimburse15 ment arrangement; or 

16 (cc) coverage that provides 

17 coverage for services or treat18 ments furnished in an on-site 

19 medical facility maintained by 

20 the employer and that consists 

21 primarily of first-aid services, 

22 prevention and wellness care, or 

23 similar care (or a combination of 

24 such care). 


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AMDT. NO. 570 

1 (C) PREMIUM REIMBURSEMENT.—For pro2 visions providing the balance of such premium, 

3 see section 6432 of the Internal Revenue Code 

4 of 1986, as added by paragraph (12). 

5 (2) LIMITATION OF PERIOD OF PREMIUM AS6 SISTANCE.— 

7 (A) IN GENERAL.—Paragraph (1)(A) shall 

8 not apply with respect to any assistance eligible 

9 individual for months of coverage beginning on 

10 or after the earlier of— 

11 (i) the first date that such individual 

12 is eligible for coverage under any other 

13 group health plan (other than coverage 

14 consisting of only dental, vision, coun15 seling, or referral services (or a combina16 tion thereof), coverage under a health re17 imbursement arrangement or a health 

18 flexible spending arrangement, or coverage 

19 of treatment that is furnished in an on-site 

20 medical facility maintained by the em21 ployer and that consists primarily of first22 aid services, prevention and wellness care, 

23 or similar care (or a combination thereof)) 

24 or is eligible for benefits under title XVIII 

25 of the Social Security Act; or 


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AMDT. NO. 570 

1 (ii) the earliest of— 

2 (I) the date which is 12 months 

3 after the first day of first month that 

4 paragraph (1)(A) applies with respect 

5 to such individual, 

6 (II) the date following the expira7 tion of the maximum period of con8 tinuation coverage required under the 

9 applicable COBRA continuation cov10 erage provision, or 

11 (III) the date following the expi12 ration of the period of continuation 

13 coverage allowed under paragraph 

14 (4)(B)(ii). 

15 (B) TIMING OF ELIGIBILITY FOR ADDI16 TIONAL COVERAGE.—For purposes of subpara17 graph (A)(i), an individual shall not be treated 

18 as eligible for coverage under a group health 

19 plan before the first date on which such indi20 vidual could be covered under such plan. 

21 (C) NOTIFICATION REQUIREMENT.—An 

22 assistance eligible individual shall notify in writ23 ing the group health plan with respect to which 

24 paragraph (1)(A) applies if such paragraph 

25 ceases to apply by reason of subparagraph 


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AMDT. NO. 570 

1 (A)(i). Such notice shall be provided to the 

2 group health plan in such time and manner as 

3 may be specified by the Secretary of Labor. 

4 (3) ASSISTANCE ELIGIBLE INDIVIDUAL.—For 

5 purposes of this section, the term ‘‘assistance eligible 

6 individual’’ means any qualified beneficiary if— 

7 (A) at any time during the period that be8 gins with September 1, 2008, and ends with 

9 December 31, 2009, such qualified beneficiary 

10 is eligible for COBRA continuation coverage, 

11 (B) such qualified beneficiary elects such 

12 coverage, and 

13 (C) the qualifying event with respect to the 

14 COBRA continuation coverage consists of the 

15 involuntary termination of the covered employ16 ee’s employment and occurred during such pe17 riod. 

18 (4) EXTENSION OF ELECTION PERIOD AND EF19 FECT ON COVERAGE.— 

20 (A) IN GENERAL.—Notwithstanding sec21 tion 605(a) of the Employee Retirement Income 

22 Security Act of 1974, section 4980B(f)(5)(A) of 

23 the Internal Revenue Code of 1986, section 

24 2205(a) of the Public Health Service Act, and 

25 section 8905a(c)(2) of title 5, United States 


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AMDT. NO. 570 

1 Code, in the case of an individual who is a 

2 qualified beneficiary described in paragraph 

3 (3)(A) as of the date of the enactment of this 

4 Act and has not made the election referred to 

5 in paragraph (3)(B) as of such date, such indi6 vidual may elect the COBRA continuation cov7 erage under the COBRA continuation coverage 

8 provisions containing such sections during the 

9 60-day period commencing with the date on 

10 which the notification required under paragraph 

11 (7)(C) is provided to such individual. 

12 (B) COMMENCEMENT OF COVERAGE; NO

13 REACH-BACK.—Any COBRA continuation cov14 erage elected by a qualified beneficiary during 

15 an extended election period under subparagraph 

16 (A)— 

17 (i) shall commence on the date of the 

18 enactment of this Act, and 

19 (ii) shall not extend beyond the period 

20 of COBRA continuation coverage that 

21 would have been required under the appli22 cable COBRA continuation coverage provi23 sion if the coverage had been elected as re24 quired under such provision. 


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AMDT. NO. 570 

1 (C) PREEXISTING CONDITIONS.—With re2 spect to a qualified beneficiary who elects 

3 COBRA continuation coverage pursuant to sub4 paragraph (A), the period— 

5 (i) beginning on the date of the quali6 fying event, and 

7 (ii) ending with the day before the 

8 date of the enactment of this Act, 

9 shall be disregarded for purposes of deter10 mining the 63-day periods referred to in section 

11 701)(2) of the Employee Retirement Income 

12 Security Act of 1974, section 9801(c)(2) of the 

13 Internal Revenue Code of 1986, and section 

14 2701(c)(2) of the Public Health Service Act. 

15 (5) EXPEDITED REVIEW OF DENIALS OF PRE16 MIUM ASSISTANCE.—In any case in which an indi17 vidual requests treatment as an assistance eligible 

18 individual and is denied such treatment by the group 

19 health plan by reason of such individual’s ineligi20 bility for COBRA continuation coverage, the Sec21 retary of Labor (or the Secretary of Health and 

22 Human services in connection with COBRA continu23 ation coverage which is provided other than pursu24 ant to part 6 of subtitle B of title I of the Employee 

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1 sultation with the Secretary of the Treasury, shall 

2 provide for expedited review of such denial. An indi3 vidual shall be entitled to such review upon applica4 tion to such Secretary in such form and manner as 

5 shall be provided by such Secretary. Such Secretary 

6 shall make a determination regarding such individ7 ual’s eligibility within 10 business days after receipt 

8 of such individual’s application for review under this 

9 paragraph. 

10 (6) DISREGARD OF SUBSIDIES FOR PURPOSES

11 OF FEDERAL AND STATE PROGRAMS.—Notwith12 standing any other provision of law, any premium 

13 reduction with respect to an assistance eligible indi14 vidual under this subsection shall not be considered 

15 income or resources in determining eligibility for, or 

16 the amount of assistance or benefits provided under, 

17 any other public benefit provided under Federal law 

18 or the law of any State or political subdivision there19 of. 

20 (7) NOTICES TO INDIVIDUALS.— 

21 (A) GENERAL NOTICE.— 

22 (i) IN GENERAL.—In the case of no23 tices provided under section 606(4) of the 

24 Employee Retirement Income Security Act 

25 of 1974 (29 U.S.C. 1166(4)), section 


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AMDT. NO. 570 

1 4980B(f)(6)(D) of the Internal Revenue 

2 Code of 1986, section 2206(4) of the Pub3 lic Health Service Act (42 U.S.C. 300bb4 6(4)), or section 8905a(f)(2)(A) of title 5, 

5 United States Code, with respect to indi6 viduals who, during the period described in 

7 paragraph (3)(A), become entitled to elect 

8 COBRA continuation coverage, such no9 tices shall include an additional notifica10 tion to the recipient of— 

11 (I) the availability of premium 

12 reduction with respect to such cov13 erage under this subsection; and 

14 (II) the option to enroll in dif15 ferent coverage if an employer that 

16 permits assistance eligible individuals 

17 to elect enrollment in different cov18 erage (as described in paragraph 

19 (1)(B)). 

20 (ii) ALTERNATIVE NOTICE.—In the 

21 case of COBRA continuation coverage to 

22 which the notice provision under such sec23 tions does not apply, the Secretary of 

24 Labor, in consultation with the Secretary 

25 of the Treasury and the Secretary of 


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AMDT. NO. 570 

1 Health and Human Services, shall, in co2 ordination with administrators of the 

3 group health plans (or other entities) that 

4 provide or administer the COBRA continu5 ation coverage involved, provide rules re6 quiring the provision of such notice. 

7 (iii) FORM.—The requirement of the 

8 additional notification under this subpara9 graph may be met by amendment of exist10 ing notice forms or by inclusion of a sepa11 rate document with the notice otherwise 

12 required. 

13 (B) SPECIFIC REQUIREMENTS.—Each ad14 ditional notification under subparagraph (A) 

15 shall include— 

16 (i) the forms necessary for estab17 lishing eligibility for premium reduction 

18 under this subsection, 

19 (ii) the name, address, and telephone 

20 number necessary to contact the plan ad21 ministrator and any other person main22 taining relevant information in connection 

23 with such premium reduction, 


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AMDT. NO. 570 

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 ben20 eficiary 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, 

10 the Secretary of the Labor, in consultation with 

11 the Secretary of the Treasury and the Secretary 

12 of 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 

21 consultation with the Secretary of the Treasury and 

22 the Secretary of Health and Human Services, shall 

23 provide outreach consisting of public education and 

24 enrollment assistance relating to premium reduction 

25 provided under this subsection. Such outreach shall 


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AMDT. NO. 570 

1 target employers, group health plan administrators, 

2 public assistance programs, States, insurers, and 

3 other entities as determined appropriate by such 

4 Secretaries. Such outreach shall include an initial 

5 focus on those individuals electing continuation cov6 erage who are referred to in paragraph (7)(C). In7 formation on such premium reduction, including en8 rollment, shall also be made available on website of 

9 the Departments of Labor, Treasury, and Health 

10 and Human Services. 

11 (10) DEFINITIONS.—For purposes of this sub12 section— 

13 (A) ADMINISTRATOR.—The term ‘‘admin14 istrator’’ has the meaning given such term in 

15 section 3(16) of the Employee Retirement In16 come 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 Em21 ployee Retirement Income Security Act of 1974 

22 (other than under section 609), title XXII of 

23 the Public Health Service Act, section 4980B of 

24 the Internal Revenue Code of 1986 (other than 

25 subsection (f)(1) of such section insofar as it 


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AMDT. NO. 570 

1 relates to pediatric vaccines), or section 8905a 

2 of title 5, United States Code, or under a State 

3 program that provides continuation coverage 

4 comparable to such continuation coverage. Such 

5 term does not include coverage under a health 

6 flexible 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 

12 ‘‘covered employee’’ has the meaning given such 

13 term in section 607(2) of the Employee Retire14 ment Income 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 

18 Retirement Income Security Act of 1974. 

19 (F) GROUP HEALTH PLAN.—The term 

20 ‘‘group health plan’’ has the meaning given 

21 such term in section 607(1) of the Employee 

22 Retirement Income Security Act of 1974. 

23 (G) STATE.—The term ‘‘State’’ includes 

24 the 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 

5 the Treasury shall submit an interim report to 

6 the Committee on Education and Labor, the 

7 Committee on Ways and Means, and the Com8 mittee on Energy and Commerce of the House 

9 of Representatives and the Committee on 

10 Health, Education, Labor, and Pensions and 

11 the Committee on Finance of the Senate re12 garding the premium reduction provided under 

13 this subsection that includes— 

14 (i) the number of individuals provided 

15 such assistance as of the date of the re16 port; 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 prac22 ticable after the last period of COBRA continu23 ation coverage for which premium reduction is 

24 provided under this section, the Secretary of the 

25 Treasury shall submit a final report to each 


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AMDT. NO. 570 

1 Committee referred to in subparagraph (A) that 

2 includes— 

3 (i) the number of individuals provided 

4 premium reduction under this section; 

5 (ii) the average dollar amount 

6 (monthly and annually) of premium reduc7 tions 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 chap14 ter 65 of the Internal Revenue Code of 1986 is 

15 amended by adding at the end the following 

16 new 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 

23 shall be treated as a credit against the requirement of such 

24 person to make deposits of payroll taxes and the liability 

25 of such person for payroll taxes. To the extent that such 


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1 amount exceeds the amount of such taxes, the Secretary 

2 shall pay to such person the amount of such excess. No 

3 payment may be made under this subsection to a person 

4 with respect to any assistance eligible individual until after 

5 such person has received the reduced premium from such 

6 individual required under section 3001(a)(1)(A) of such 

7 Act. 

8 ‘‘(b) PAYROLL TAXES.—For purposes of this section, 

9 the term ‘payroll taxes’ means— 

10 ‘‘(1) amounts required to be deducted and with11 held for the payroll period under section 3401 (relat12 ing to wage withholding), 

13 ‘‘(2) amounts required to be deducted for the 

14 payroll period under section 3102 (relating to FICA 

15 employee taxes), and 

16 ‘‘(3) amounts of the taxes imposed for the pay17 roll period under section 3111 (relating to FICA em18 ployer taxes). 

19 ‘‘(c) TREATMENT OF CREDIT.—Except as otherwise 

20 provided by the Secretary, the credit described in sub21 section (a) shall be applied as though the employer had 

22 paid to the Secretary, on the day that the qualified bene23 ficiary’s premium payment is received, an amount equal 

24 to such credit. 


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1 ‘‘(d) TREATMENT OF PAYMENT.—For purposes of 

2 section 1324(b)(2) of title 31, United States Code, any 

3 payment under this subsection shall be treated in the same 

4 manner as a refund of the credit under section 35. 

5 ‘‘(e) REPORTING.— 

6 ‘‘(1) IN GENERAL.—Each person entitled to re7 imbursement under subsection (a) for any period 

8 shall submit such reports as the Secretary may re9 quire, including— 

10 ‘‘(A) an attestation of involuntary termi11 nation of employment for each covered em12 ployee on the basis of whose termination entitle13 ment to reimbursement is claimed under sub14 section (a), and 

15 ‘‘(B) a report of the amount of payroll 

16 taxes offset under subsection (a) for the report17 ing period and the estimated offsets of such 

18 taxes for the subsequent reporting period in 

19 connection with reimbursements under sub20 section (a). 

21 ‘‘(2) TIMING OF REPORTS RELATING TO

22 AMOUNT OF PAYROLL TAXES.—Reports required 

23 under paragraph (1)(B) shall be submitted at the 

24 same time as deposits of taxes imposed by chapters 


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1 21, 22, and 24 or at such time as is specified by the 

2 Secretary. 

3 ‘‘(f) REGULATIONS.—The Secretary may issue such 

4 regulations or other guidance as may be necessary or ap5 propriate to carry out this section, including the require6 ment to report information or the establishment of other 

7 methods for verifying the correct amounts of payments 

8 and credits under this section, and the application of this 

9 section to group health plans which are multiemployer 

10 plans.’’. 

11 (B) SOCIAL SECURITY TRUST FUNDS HELD

12 HARMLESS.—In determining any amount trans13 ferred or appropriated to any fund under the 

14 Social Security Act, section 6432 of the Inter15 nal Revenue Code of 1986 shall not be taken 

16 into account. 

17 (C) CLERICAL AMENDMENT.—The table of 

18 sections for subchapter B of chapter 65 of the 

19 Internal Revenue Code of 1986 is amended by 

20 adding at the end the following new item: 

‘‘Sec. 6432. COBRA premium assistance.’’. 

21 (D) EFFECTIVE DATE.—The amendments 

22 made by this paragraph shall apply to pre23 miums to which subsection (a)(1)(A) applies. 

24 (E) SPECIAL RULE.— 


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1 (i) IN GENERAL.—In the case of an 

2 assistance eligible individual who pays the 

3 full premium amount required for COBRA 

4 continuation coverage for any month dur5 ing the 60-day period beginning on the 

6 first day of the first month after the date 

7 of enactment of this Act, the person to 

8 whom such payment is made shall— 

9 (I) make a reimbursement pay10 ment to such individual for the 

11 amount of such premium paid in ex12 cess of the amount required to be paid 

13 under subsection (b)(1)(A); or 

14 (II) provide credit to the indi15 vidual for such amount in a manner 

16 that reduces one or more subsequent 

17 premium payments that the individual 

18 is required to pay under such sub19 section for the coverage involved. 

20 (ii) REIMBURSING EMPLOYER.—A 

21 person to which clause (i) applies shall be 

22 reimbursed as provided for in section 6432 

23 of the Internal Revenue Code of 1986 for 

24 any payment made, or credit provided, to 

25 the employee under such clause. 


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1 (iii) PAYMENT OR CREDITS.—Unless 

2 it is reasonable to believe that the credit 

3 for the excess payment in clause (i)(II) will 

4 be used by the assistance eligible individual 

5 within 180 days of the date on which the 

6 person receives from the individual the 

7 payment of the full premium amount, a 

8 person to which clause (i) applies shall 

9 make the payment required under such 

10 clause to the individual within 60 days of 

11 such payment of the full premium amount. 

12 If, as of any day within the 180-day pe13 riod, it is no longer reasonable to believe 

14 that the credit will be used during that pe15 riod, payment equal to the remainder of 

16 the credit outstanding shall be made to the 

17 individual within 60 days of such day. 

18 (13) PENALTY FOR FAILURE TO NOTIFY

19 HEALTH PLAN OF CESSATION OF ELIGIBILITY FOR

20 PREMIUM ASSISTANCE.— 

21 (A) IN GENERAL.—Part I of subchapter B 

22 of chapter 68 of the Internal Revenue Code of 

23 1986 is amended by adding at the end the fol24 lowing new section: 


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1 ‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH 

2 PLAN OF CESSATION OF ELIGIBILITY FOR 

3 COBRA PREMIUM ASSISTANCE. 

4 ‘‘(a) IN GENERAL.—Any person required to notify a 

5 group health plan under section 3001(a)(2)(C) of the 

6 American Recovery and Reinvestment Act of 2009 who 

7 fails to make such a notification at such time and in such 

8 manner as the Secretary of Labor may require shall pay 

9 a penalty of 110 percent of the premium reduction pro10 vided under such section after termination of eligibility 

11 under such subsection. 

12 ‘‘(b) REASONABLE CAUSE EXCEPTION.—No penalty 

13 shall be imposed under subsection (a) with respect to any 

14 failure if it is shown that such failure is due to reasonable 

15 cause and not to willful neglect.’’. 

16 (B) CLERICAL AMENDMENT.—The table of 

17 sections of part I of subchapter B of chapter 68 

18 of such Code is amended by adding at the end 

19 the following new item: 

‘‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility 

for COBRA premium assistance.’’. 

20 (C) EFFECTIVE DATE.—The amendments 

21 made by this paragraph shall apply to failures 

22 occurring after the date of the enactment of 

23 this Act. 

24 (14) COORDINATION WITH HCTC.— 


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1 (A) IN GENERAL.—Subsection (g) of sec2 tion 35 of the Internal Revenue Code of 1986 

3 is amended by redesignating paragraph (9) as 

4 paragraph (10) and inserting after paragraph 

5 (8) the following new paragraph: 

6 ‘‘(9) COBRA PREMIUM ASSISTANCE.—In the 

7 case of an assistance eligible individual who receives 

8 premium reduction for COBRA continuation cov9 erage under section 3001(a) of the American Recov10 ery and Reinvestment Act of 2009 for any month 

11 during the taxable year, such individual shall not be 

12 treated as an eligible individual, a certified indi13 vidual, or a qualifying family member for purposes 

14 of this section or section 7527 with respect to such 

15 month.’’. 

16 (B) EFFECTIVE DATE.—The amendment 

17 made by subparagraph (A) shall apply to tax18 able years ending after the date of the enact19 ment of this Act. 

20 (15) EXCLUSION OF COBRA PREMIUM ASSIST21 ANCE FROM GROSS INCOME.— 

22 (A) IN GENERAL.—Part III of subchapter 

23 B of chapter 1 of the Internal Revenue Code of 

24 1986 is amended by inserting after section 

25 139B the following new section: 


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1 ‘‘SEC. 139C. COBRA PREMIUM ASSISTANCE. 

2 ‘‘In the case of an assistance eligible individual (as 

3 defined in section 3001 of the American Recovery and Re4 investment Act of 2009), gross income does not include 

5 any premium reduction provided under subsection (a) of 

6 such section.’’. 

7 (B) CLERICAL AMENDMENT.—The table of 

8 sections for part III of subchapter B of chapter 

9 1 of such Code is amended by inserting after 

10 the item relating to section 139B the following 

11 new item: 

‘‘Sec. 139C. COBRA premium assistance.’’. 

12 (C) EFFECTIVE DATE.—The amendments 

13 made by this paragraph shall apply to taxable 

14 years ending after the date of the enactment of 

15 this Act. 

16 Subtitle B—Transitional Medical 

17 Assistance (TMA) 

18 SEC. 3101. EXTENSION OF TRANSITIONAL MEDICAL ASSIST19 ANCE (TMA). 

20 (a) 18-MONTH EXTENSION.— 

21 (1) IN GENERAL.—Sections 1902(e)(1)(B) and 

22 1925(f) of the Social Security Act (42 U.S.C. 

23 1396a(e)(1)(B), 1396r–6(f)) are each amended by 

24 striking ‘‘September 30, 2003’’ and inserting ‘‘De25 cember 31, 2010’’. 


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1 (2) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall take effect on July 1, 2009. 

3 (b) STATE OPTION OF INITIAL 12-MONTH ELIGI4 BILITY.—Section 1925 of the Social Security Act (42 

5 U.S.C. 1396r–6) is amended— 

6 (1) in subsection (a)(1), by inserting ‘‘but sub7 ject to paragraph (5)’’ after ‘‘Notwithstanding any 

8 other provision of this title’’; 

9 (2) by adding at the end of subsection (a) the 

10 following: 

11 ‘‘(5) OPTION OF 12-MONTH INITIAL ELIGIBILITY

12 PERIOD.—A State may elect to treat any reference 

13 in this subsection to a 6-month period (or 6 months) 

14 as a reference to a 12-month period (or 12 months). 

15 In the case of such an election, subsection (b) shall 

16 not apply.’’; and 

17 (3) in subsection (b)(1), by inserting ‘‘but sub18 ject to subsection (a)(5)’’ after ‘‘Notwithstanding 

19 any other provision of this title’’. 

20 (c) REMOVAL OF REQUIREMENT FOR PREVIOUS RE21 CEIPT OF MEDICAL ASSISTANCE.—Section 1925(a)(1) of 

22 such Act (42 U.S.C. 1396r–6(a)(1)), as amended by sub23 section (b)(1), is further amended— 

24 (1) by inserting ‘‘subparagraph (B) and’’ before 

25 ‘‘paragraph (5)’’; 


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1 (2) by redesignating the matter after ‘‘RE2 QUIREMENT.—’’ as a subparagraph (A) with the 

3 heading ‘‘IN GENERAL.—’’ and with the same inden4 tation as subparagraph (B) (as added by paragraph 

5 (3)); and 

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

7 ‘‘(B) STATE OPTION TO WAIVE REQUIRE8 MENT FOR 3 MONTHS BEFORE RECEIPT OF

9 MEDICAL ASSISTANCE.—A State may, at its op10 tion, elect also to apply subparagraph (A) in 

11 the case of a family that was receiving such aid 

12 for fewer than three months or that had applied 

13 for and was eligible for such aid for fewer than 

14 3 months during the 6 immediately preceding 

15 months described in such subparagraph.’’. 

16 (d) CMS REPORT ON ENROLLMENT AND PARTICIPA17 TION RATES UNDER TMA.—Section 1925 of such Act (42 

18 U.S.C. 1396r–6), as amended by this section, is further 

19 amended by adding at the end the following new sub20 section: 

21 ‘‘(g) COLLECTION AND REPORTING OF PARTICIPA22 TION INFORMATION.— 

23 ‘‘(1) COLLECTION OF INFORMATION FROM

24 STATES.—Each State shall collect and submit to the 

25 Secretary (and make publicly available), in a format 


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1 specified by the Secretary, information on average 

2 monthly enrollment and average monthly participa3 tion rates for adults and children under this section 

4 and of the number and percentage of children who 

5 become ineligible for medical assistance under this 

6 section whose medical assistance is continued under 

7 another eligibility category or who are enrolled under 

8 the State’s child health plan under title XXI. Such 

9 information shall be submitted at the same time and 

10 frequency in which other enrollment information 

11 under this title is submitted to the Secretary. 

12 ‘‘(2) ANNUAL REPORTS TO CONGRESS.—Using 

13 the information submitted under paragraph (1), the 

14 Secretary shall submit to Congress annual reports 

15 concerning enrollment and participation rates de16 scribed in such paragraph.’’. 

17 (e) EFFECTIVE DATE.—The amendments made by 

18 subsections (b) through (d) shall take effect on July 1, 

19 2009. 

20 Subtitle C—Extension of the 

21 Qualified Individual (QI) Program 

22 SEC. 3201. EXTENSION OF THE QUALIFYING INDIVIDUAL 

23 (QI) PROGRAM. 

24 (a) EXTENSION.—Section 1902(a)(10)(E)(iv) of the 

25 Social Security Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is 


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1 amended by striking ‘‘December 2009’’ and inserting ‘‘De2 cember 2010’’. 

3 (b) EXTENDING TOTAL AMOUNT AVAILABLE FOR

4 ALLOCATION.—Section 1933(g) of such Act (42 U.S.C. 

5 1396u–3(g)) is amended— 

6 (1) in paragraph (2)— 

7 (A) by striking ‘‘and’’ at the end of sub8 paragraph (K); 

9 (B) in subparagraph (L), by striking the 

10 period at the end and inserting a semicolon; 

11 and 

12 (C) by adding at the end the following new 

13 subparagraphs: 

14 ‘‘(M) for the period that begins on Janu15 ary 1, 2010, and ends on September 30, 2010, 

16 the total allocation amount is $412,500,000; 

17 and 

18 ‘‘(N) for the period that begins on October 

19 1, 2010, and ends on December 31, 2010, the 

20 total allocation amount is $150,000,000.’’; and 

21 (2) in paragraph (3), in the matter preceding 

22 subparagraph (A), by striking ‘‘or (L)’’ and insert23 ing ‘‘(L), or (N)’’. 


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1 Subtitle D—Other Provisions 

2 SEC. 3301. PREMIUMS AND COST SHARING PROTECTIONS 

3 UNDER MEDICAID, ELIGIBILITY DETERMINA4 TIONS UNDER MEDICAID AND CHIP, AND 

5 PROTECTION OF CERTAIN INDIAN PROPERTY 

6 FROM MEDICAID ESTATE RECOVERY. 

7 (a) PREMIUMS AND COST SHARING PROTECTION

8 UNDER MEDICAID.— 

9 (1) IN GENERAL.—Section 1916 of the Social 

10 Security Act (42 U.S.C. 1396o) is amended— 

11 (A) in subsection (a), in the matter pre12 ceding paragraph (1), by striking ‘‘and (i)’’ and 

13 inserting ‘‘, (i), and (j)’’; and 

14 (B) by adding at the end the following new 

15 subsection: 

16 ‘‘(j) NO PREMIUMS OR COST SHARING FOR INDIANS

17 FURNISHED ITEMS OR SERVICES DIRECTLY BY INDIAN

18 HEALTH PROGRAMS OR THROUGH REFERRAL UNDER

19 CONTRACT HEALTH SERVICES.— 

20 ‘‘(1) NO COST SHARING FOR ITEMS OR SERV21 ICES FURNISHED TO INDIANS THROUGH INDIAN

22 HEALTH PROGRAMS.— 

23 ‘‘(A) IN GENERAL.—No enrollment fee, 

24 premium, or similar charge, and no deduction, 

25 copayment, cost sharing, or similar charge shall 


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1 be imposed against an Indian who is furnished 

2 an item or service directly by the Indian Health 

3 Service, an Indian Tribe, Tribal Organization, 

4 or Urban Indian Organization or through refer5 ral under contract health services for which 

6 payment may be made under this title. 

7 ‘‘(B) NO REDUCTION IN AMOUNT OF PAY8 MENT TO INDIAN HEALTH PROVIDERS.—Pay9 ment due under this title to the Indian Health 

10 Service, an Indian Tribe, Tribal Organization, 

11 or Urban Indian Organization, or a health care 

12 provider through referral under contract health 

13 services for the furnishing of an item or service 

14 to an Indian who is eligible for assistance under 

15 such title, may not be reduced by the amount 

16 of any enrollment fee, premium, or similar 

17 charge, or any deduction, copayment, cost shar18 ing, or similar charge that would be due from 

19 the Indian but for the operation of subpara20 graph (A). 

21 ‘‘(2) RULE OF CONSTRUCTION.—Nothing in 

22 this subsection shall be construed as restricting the 

23 application of any other limitations on the imposi24 tion of premiums or cost sharing that may apply to 


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1 an individual receiving medical assistance under this 

2 title who is an Indian.’’. 

3 (2) CONFORMING AMENDMENT.—Section 

4 1916A(b)(3) of such Act (42 U.S.C. 1396o–1(b)(3)) 

5 is amended— 

6 (A) in subparagraph (A), by adding at the 

7 end the following new clause: 

8 ‘‘(vi) An Indian who is furnished an 

9 item or service directly by the Indian 

10 Health Service, an Indian Tribe, Tribal 

11 Organization or Urban Indian Organiza12 tion or through referral under contract 

13 health services.’’; and 

14 (B) in subparagraph (B), by adding at the 

15 end the following new clause: 

16 ‘‘(ix) Items and services furnished to 

17 an Indian directly by the Indian Health 

18 Service, an Indian Tribe, Tribal Organiza19 tion or Urban Indian Organization or 

20 through referral under contract health 

21 services.’’. 

22 (b) TREATMENT OF CERTAIN PROPERTY FROM RE23 SOURCES FOR MEDICAID AND CHIP ELIGIBILITY.— 


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1 (1) MEDICAID.—Section 1902 of the Social Se2 curity Act (42 U.S.C. 1396a) is amended by adding 

3 at the end the following new subsection: 

4 ‘‘(dd) Notwithstanding any other requirement of this 

5 title or any other provision of Federal or State law, a State 

6 shall disregard the following property from resources for 

7 purposes of determining the eligibility of an individual who 

8 is an Indian for medical assistance under this title: 

9 ‘‘(1) Property, including real property and im10 provements, that is held in trust, subject to Federal 

11 restrictions, or otherwise under the supervision of 

12 the Secretary of the Interior, located on a reserva13 tion, including any federally recognized Indian 

14 Tribe’s reservation, pueblo, or colony, including 

15 former reservations in Oklahoma, Alaska Native re16 gions established by the Alaska Native Claims Set17 tlement Act, and Indian allotments on or near a res18 ervation as designated and approved by the Bureau 

19 of Indian Affairs of the Department of the Interior. 

20 ‘‘(2) For any federally recognized Tribe not de21 scribed in paragraph (1), property located within the 

22 most recent boundaries of a prior Federal reserva23 tion. 

24 ‘‘(3) Ownership interests in rents, leases, royal25 ties, or usage rights related to natural resources (inVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00651 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 cluding extraction of natural resources or harvesting 

2 of timber, other plants and plant products, animals, 

3 fish, and shellfish) resulting from the exercise of fed4 erally protected rights. 

5 ‘‘(4) Ownership interests in or usage rights to 

6 items not covered by paragraphs (1) through (3) 

7 that have unique religious, spiritual, traditional, or 

8 cultural significance or rights that support subsist9 ence or a traditional lifestyle according to applicable 

10 tribal law or custom.’’. 

11 (2) APPLICATION TO CHIP.—Section 2107(e)(1) 

12 of such Act (42 U.S.C. 1397gg(e)(1)) is amended— 

13 (A) by redesignating subparagraphs (B) 

14 through (E), as subparagraphs (C) through 

15 (F), respectively; and 

16 (B) by inserting after subparagraph (A), 

17 the following new subparagraph: 

18 ‘‘(B) Section 1902(dd) (relating to dis19 regard of certain property for purposes of mak20 ing eligibility determinations).’’. 

21 (c) CONTINUATION OF CURRENT LAW PROTECTIONS

22 OF CERTAIN INDIAN PROPERTY FROM MEDICAID ESTATE

23 RECOVERY.—Section 1917(b)(3) of the Social Security 

24 Act (42 U.S.C. 1396p(b)(3)) is amended— 

25 (1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 


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1 (2) by adding at the end the following new sub2 paragraph: 

3 ‘‘(B) The standards specified by the Sec4 retary under subparagraph (A) shall require 

5 that the procedures established by the State 

6 agency under subparagraph (A) exempt income, 

7 resources, and property that are exempt from 

8 the application of this subsection as of April 1, 

9 2003, under manual instructions issued to carry 

10 out this subsection (as in effect on such date) 

11 because of the Federal responsibility for Indian 

12 Tribes and Alaska Native Villages. Nothing in 

13 this subparagraph shall be construed as pre14 venting the Secretary from providing additional 

15 estate recovery exemptions under this title for 

16 Indians.’’. 

17 SEC. 3302. RULES APPLICABLE UNDER MEDICAID AND CHIP 

18 TO MANAGED CARE ENTITIES WITH RESPECT 

19 TO INDIAN ENROLLEES AND INDIAN HEALTH 

20 CARE PROVIDERS AND INDIAN MANAGED 

21 CARE ENTITIES. 

22 (a) IN GENERAL.—Section 1932 of the Social Secu23 rity Act (42 U.S.C. 1396u–2) is amended by adding at 

24 the end the following new subsection: 


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1 ‘‘(h) SPECIAL RULES WITH RESPECT TO INDIAN EN2 ROLLEES, INDIAN HEALTH CARE PROVIDERS, AND IN3 DIAN MANAGED CARE ENTITIES.— 

4 ‘‘(1) ENROLLEE OPTION TO SELECT AN INDIAN

5 HEALTH CARE PROVIDER AS PRIMARY CARE PRO6 VIDER.—In the case of a non-Indian Medicaid man7 aged care entity that— 

8 ‘‘(A) has an Indian enrolled with the enti9 ty; and 

10 ‘‘(B) has an Indian health care provider 

11 that is participating as a primary care provider 

12 within the network of the entity, 

13 insofar as the Indian is otherwise eligible to receive 

14 services from such Indian health care provider and 

15 the Indian health care provider has the capacity to 

16 provide primary care services to such Indian, the 

17 contract with the entity under section 1903(m) or 

18 under section 1905(t)(3) shall require, as a condi19 tion of receiving payment under such contract, that 

20 the Indian shall be allowed to choose such Indian 

21 health care provider as the Indian’s primary care 

22 provider under the entity. 

23 ‘‘(2) ASSURANCE OF PAYMENT TO INDIAN

24 HEALTH CARE PROVIDERS FOR PROVISION OF COV25 ERED SERVICES.—Each contract with a managed 


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1 care entity under section 1903(m) or under section 

2 1905(t)(3) shall require any such entity, as a condi3 tion of receiving payment under such contract, to 

4 satisfy the following requirements: 

5 ‘‘(A) DEMONSTRATION OF ACCESS TO IN6 DIAN HEALTH CARE PROVIDERS AND APPLICA7 TION OF ALTERNATIVE PAYMENT ARRANGE8 MENTS.—Subject to subparagraph (C), to— 

9 ‘‘(i) demonstrate that the number of 

10 Indian health care providers that are par11 ticipating providers with respect to such 

12 entity are sufficient to ensure timely access 

13 to covered Medicaid managed care services 

14 for those Indian enrollees who are eligible 

15 to receive services from such providers; and 

16 ‘‘(ii) agree to pay Indian health care 

17 providers, whether such providers are par18 ticipating or nonparticipating providers 

19 with respect to the entity, for covered Med20 icaid managed care services provided to 

21 those Indian enrollees who are eligible to 

22 receive services from such providers at a 

23 rate equal to the rate negotiated between 

24 such entity and the provider involved or, if 

25 such a rate has not been negotiated, at a 


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1 rate that is not less than the level and 

2 amount of payment which the entity would 

3 make for the services if the services were 

4 furnished by a participating provider which 

5 is not an Indian health care provider. 

6 ‘‘(B) PROMPT PAYMENT.—To agree to 

7 make prompt payment (consistent with rule for 

8 prompt payment of providers under section 

9 1932(f)) to Indian health care providers that 

10 are participating providers with respect to such 

11 entity or, in the case of an entity to which sub12 paragraph (A)(ii) or (C) applies, that the entity 

13 is required to pay in accordance with that sub14 paragraph. 

15 ‘‘(C) APPLICATION OF SPECIAL PAYMENT

16 REQUIREMENTS FOR FEDERALLY-QUALIFIED

17 HEALTH CENTERS AND FOR SERVICES PRO18 VIDED BY CERTAIN INDIAN HEALTH CARE PRO19 VIDERS.— 

20 ‘‘(i) FEDERALLY-QUALIFIED HEALTH

21 CENTERS.— 

22 ‘‘(I) MANAGED CARE ENTITY

23 PAYMENT REQUIREMENT.—To agree 

24 to pay any Indian health care provider 

25 that is a federally-qualified health 


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1 center under this title but not a par2 ticipating provider with respect to the 

3 entity, for the provision of covered 

4 Medicaid managed care services by 

5 such provider to an Indian enrollee of 

6 the entity at a rate equal to the 

7 amount of payment that the entity 

8 would pay a federally-qualified health 

9 center that is a participating provider 

10 with respect to the entity but is not 

11 an Indian health care provider for 

12 such services. 

13 ‘‘(II) CONTINUED APPLICATION

14 OF STATE REQUIREMENT TO MAKE

15 SUPPLEMENTAL PAYMENT.—Nothing 

16 in subclause (I) or subparagraph (A) 

17 or (B) shall be construed as waiving 

18 the application of section 1902(bb)(5) 

19 regarding the State plan requirement 

20 to make any supplemental payment 

21 due under such section to a federally22 qualified health center for services 

23 furnished by such center to an en24 rollee of a managed care entity (re25 gardless of whether the federallyVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00657 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 qualified health center is or is not a 

2 participating provider with the entity). 

3 ‘‘(ii) PAYMENT RATE FOR SERVICES

4 PROVIDED BY CERTAIN INDIAN HEALTH

5 CARE PROVIDERS.—If the amount paid by 

6 a managed care entity to an Indian health 

7 care provider that is not a federally-quali8 fied health center for services provided by 

9 the provider to an Indian enrollee with the 

10 managed care entity is less than the rate 

11 that applies to the provision of such serv12 ices by the provider under the State plan, 

13 the plan shall provide for payment to the 

14 Indian health care provider, whether the 

15 provider is a participating or nonpartici16 pating provider with respect to the entity, 

17 of the difference between such applicable 

18 rate and the amount paid by the managed 

19 care entity to the provider for such serv20 ices. 

21 ‘‘(D) CONSTRUCTION.—Nothing in this 

22 paragraph shall be construed as waiving the ap23 plication of section 1902(a)(30)(A) (relating to 

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1 ments are consistent with efficiency, economy, 

2 and quality of care). 

3 ‘‘(3) SPECIAL RULE FOR ENROLLMENT FOR IN4 DIAN MANAGED CARE ENTITIES.—Regarding the ap5 plication of a Medicaid managed care program to In6 dian Medicaid managed care entities, an Indian 

7 Medicaid managed care entity may restrict enroll8 ment under such program to Indians and to mem9 bers of specific Tribes in the same manner as Indian 

10 Health Programs may restrict the delivery of serv11 ices to such Indians and tribal members. 

12 ‘‘(4) DEFINITIONS.—For purposes of this sub13 section: 

14 ‘‘(A) INDIAN HEALTH CARE PROVIDER.— 

15 The term ‘Indian health care provider’ means 

16 an Indian Health Program or an Urban Indian 

17 Organization. 

18 ‘‘(B) INDIAN MEDICAID MANAGED CARE

19 ENTITY.—The term ‘Indian Medicaid managed 

20 care entity’ means a managed care entity that 

21 is controlled (within the meaning of the last 

22 sentence of section 1903(m)(1)(C)) by the In23 dian Health Service, a Tribe, Tribal Organiza24 tion, or Urban Indian Organization, or a con25 sortium, which may be composed of 1 or more 


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1 Tribes, Tribal Organizations, or Urban Indian 

2 Organizations, and which also may include the 

3 Service. 

4 ‘‘(C) NON-INDIAN MEDICAID MANAGED

5 CARE ENTITY.—The term ‘non-Indian Medicaid 

6 managed care entity’ means a managed care en7 tity that is not an Indian Medicaid managed 

8 care entity. 

9 ‘‘(D) COVERED MEDICAID MANAGED CARE

10 SERVICES.—The term ‘covered Medicaid man11 aged care services’ means, with respect to an 

12 individual enrolled with a managed care entity, 

13 items and services for which benefits are avail14 able with respect to the individual under the 

15 contract between the entity and the State in16 volved. 

17 ‘‘(E) MEDICAID MANAGED CARE PRO18 GRAM.—The term ‘Medicaid managed care pro19 gram’ means a program under sections 

20 1903(m), 1905(t), and 1932 and includes a 

21 managed care program operating under a waiv22 er under section 1915(b) or 1115 or other23 wise.’’. 

24 (b) APPLICATION TO CHIP.—Subject to section 

25 l013(d), section 2107(e)(1) of such Act (42 U.S.C. 


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1 1397gg(1)) is amended by adding at the end the following 

2 new subparagraph: 

3 ‘‘(E) Subsections (a)(2)(C) and (h) of sec4 tion 1932.’’. 

5 SEC. 3303. CONSULTATION ON MEDICAID, CHIP, AND 

6 OTHER HEALTH CARE PROGRAMS FUNDED 

7 UNDER THE SOCIAL SECURITY ACT INVOLV8 ING INDIAN HEALTH PROGRAMS AND URBAN 

9 INDIAN ORGANIZATIONS. 

10 (a) CONSULTATION WITH TRIBAL TECHNICAL ADVI11 SORY GROUP (TTAG).—The Secretary of Health and 

12 Human Services shall maintain within the Centers for 

13 Medicaid & Medicare Services (CMS) a Tribal Technical 

14 Advisory Group (TTAG), which was first established in 

15 accordance with requirements of the charter dated Sep16 tember 30, 2003, and the Secretary of Health and Human 

17 Services shall include in such Group a representative of 

18 a national urban Indian health organization and a rep19 resentative of the Indian Health Service. The inclusion of 

20 a representative of a national urban Indian health organi21 zation in such Group shall not affect the nonapplication 

22 of the Federal Advisory Committee Act (5 U.S.C. App.) 

23 to such Group. 

24 (b) SOLICITATION OF ADVICE UNDER MEDICAID AND

25 CHIP.— 


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1 (1) MEDICAID STATE PLAN AMENDMENT.— 

2 Subject to subsection (d), section 1902(a) of the So3 cial Security Act (42 U.S.C. 1396a(a)) is amend4 ed— 

5 (A) in paragraph (70), by striking ‘‘and’’ 

6 at the end; 

7 (B) in paragraph (71), by striking the pe8 riod at the end and inserting ‘‘; and’’; and 

9 (C) by inserting after paragraph (71), the 

10 following new paragraph: 

11 ‘‘(72) in the case of any State in which 1 or 

12 more Indian Health Programs or Urban Indian Or13 ganizations furnishes health care services, provide 

14 for a process under which the State seeks advice on 

15 a regular, ongoing basis from designees of such In16 dian Health Programs and Urban Indian Organiza17 tions on matters relating to the application of this 

18 title that are likely to have a direct effect on such 

19 Indian Health Programs and Urban Indian Organi20 zations and that— 

21 ‘‘(A) shall include solicitation of advice 

22 prior to submission of any plan amendments, 

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1 dians, Indian Health Programs, or Urban In2 dian Organizations; and 

3 ‘‘(B) may include appointment of an advi4 sory committee and of a designee of such In5 dian Health Programs and Urban Indian Orga6 nizations to the medical care advisory com7 mittee advising the State on its State plan 

8 under this title.’’. 

9 (2) APPLICATION TO CHIP.—Subject to sub10 section (d), section 2107(e)(1) of such Act (42 

11 U.S.C. 1397gg(e)(1)), as amended by section 

12 3302(b)(2), is 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 

23 amendments made by this section shall be construed as 

24 superseding existing advisory committees, working groups, 

25 guidance, or other advisory procedures established by the 


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1 Secretary of Health and Human Services or by any State 

2 with respect to the provision of health care to Indians. 

3 (d) CONTINGENCY RULE.—If the Children’s Health 

4 Insurance Program Reauthorization Act of 2009 (in this 

5 subsection referred to as ‘‘CHIPRA’’) has been enacted 

6 as of the date of enactment of this Act, the following shall 

7 apply: 

8 (1) Subparagraph (I) of section 2107(e) of the 

9 Social Security Act (as redesignated by CHIPRA) is 

10 redesignated as subparagraph (K) and the subpara11 graph (E) added to section 2107(e) of the Social Se12 curity Act by section 3302(b) is redesignated as sub13 paragraph (J). 

14 (2) Subparagraphs (D) through (H) of section 

15 2107(e) of the Social Security Act (as added and re16 designated by CHIPRA) are redesignated as sub17 paragraphs (E) through (I), respectively and the 

18 subparagraph (B) of section 2107(e) of the Social 

19 Security Act added by subsection (b)(2) of this sec20 tion is redesignated as subparagraph (D) and 

21 amended by striking ‘‘1902(a)(72)’’ and inserting 

22 ‘‘1902(a)(73)’’. 

23 (3) Section 1902(a) of the Social Security Act 

24 (as amended by CHIPRA) is amended by striking 

25 ‘‘and’’ at the end of paragraph (71), by striking the 


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1 period at the end of the paragraph (72) added by 

2 CHIPRA and inserting ‘‘; and’’ and by redesignated 

3 the paragraph (72) added to such section by sub4 section (b)(1) of this section as paragraph (73). 

5 SEC. 3304. APPLICATION OF PROMPT PAY REQUIREMENTS 

6 TO NURSING FACILITIES. 

7 Section 1902(a)(37)(A) of the Social Security Act 

8 (42 U.S.C. 1396a(a)(37)(A)) is amended by inserting ‘‘, 

9 or by nursing facilities,’’ after ‘‘health facilities’’ 

10 SEC. 3305. PERIOD OF APPLICATION; SUNSET. 

11 This subtitle and the amendments made by this sub12 title shall be in effect only during the period that begins 

13 on April 1, 2009, and ends on December 31, 2010. On 

14 and after January 1, 2011, the Social Security Act shall 

15 be applied as if this subtitle and the amendments made 

16 by this subtitle had not been enacted. 

17 TITLE IV—HEALTH 

18 INFORMATION TECHNOLOGY 

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

20 (a) SHORT TITLE.—This title may be cited as the 

21 ‘‘Medicare and Medicaid Health Information Technology 

22 for Economic and Clinical Health Act’’ or the ‘‘M23 HITECH Act’’. 

24 (b) TABLE OF CONTENTS OF TITLE.—The table of 

25 contents for this title is as follows: 

TITLE IV—HEALTH INFORMATION TECHNOLOGY 


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Sec. 4001. Short title; table of contents of title. 

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 So4 cial Security Act (42 U.S.C. 1395w–4) is amended by add5 ing 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 

13 professional services furnished by an eligi14 ble professional during a payment year (as 

15 defined in subparagraph (E)), if the eligi16 ble professional is a meaningful EHR user 

17 (as determined under paragraph (2)) for 


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1 the reporting period with respect to such 

2 year, in addition to the amount otherwise 

3 paid under this part, there also shall be 

4 paid to the eligible professional (or to an 

5 employer or facility in the cases described 

6 in clause (A) of section 1842(b)(6)), from 

7 the Federal Supplementary Medical Insur8 ance Trust Fund established under section 

9 1841 an amount equal to 75 percent of the 

10 Secretary’s estimate (based on claims sub11 mitted not later than 2 months after the 

12 end of the payment year) of the allowed 

13 charges under this part for all such cov14 ered professional services furnished by the 

15 eligible professional during such year. 

16 ‘‘(ii) NO INCENTIVE PAYMENTS WITH

17 RESPECT TO YEARS AFTER 2015.—No in18 centive payments may be made under this 

19 subsection with respect to a year after 

20 2015. 

21 ‘‘(B) LIMITATIONS ON AMOUNTS OF IN22 CENTIVE PAYMENTS.— 

23 ‘‘(i) IN GENERAL.—In no case shall 

24 the amount of the incentive payment pro25 vided under this paragraph for an eligible 


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1 professional for a payment year exceed the 

2 applicable amount specified under this sub3 paragraph with respect to such eligible 

4 professional and such year. 

5 ‘‘(ii) AMOUNT.—Subject to clauses 

6 (iii) through (v), the applicable amount 

7 specified in this subparagraph for an eligi8 ble professional is as follows: 

9 ‘‘(I) For the first payment year 

10 for such professional, $15,000 (or, if 

11 the first payment year for such eligi12 ble professional is 2011 or 2012, 

13 $18,000). 

14 ‘‘(II) For the second payment 

15 year for such professional, $12,000. 

16 ‘‘(III) For the third payment 

17 year for such professional, $8,000. 

18 ‘‘(IV) For the fourth payment 

19 year for such professional, $4,000. 

20 ‘‘(V) For the fifth payment year 

21 for such professional, $2,000. 

22 ‘‘(VI) For any succeeding pay23 ment year for such professional, $0. 

24 ‘‘(iii) PHASE DOWN FOR ELIGIBLE

25 PROFESSIONALS FIRST ADOPTING EHR IN


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1 2014.—If the first payment year for an eli2 gible professional is 2014, then the amount 

3 specified in this subparagraph for a pay4 ment year for such professional is the 

5 same as the amount specified in clause (ii) 

6 for such payment year for an eligible pro7 fessional whose first payment year is 2013. 

8 ‘‘(iv) INCREASE FOR CERTAIN RURAL

9 ELIGIBLE PROFESSIONALS.—In the case of 

10 an eligible professional who predominantly 

11 furnishes services under this part in a 

12 rural area that is designated by the Sec13 retary (under section 332(a)(1)(A) of the 

14 Public Health Service Act) as a health pro15 fessional shortage area, the amount that 

16 would otherwise apply for a payment year 

17 for such professional under subclauses (I) 

18 through (V) of clause (ii) shall be in19 creased by 25 percent. In implementing 

20 the preceding sentence, the Secretary may, 

21 as determined appropriate, apply provi22 sions of subsections (m) and (u) of section 

23 1833 in a similar manner as such provi24 sions apply under such subsection. 


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1 ‘‘(v) NO INCENTIVE PAYMENT IF

2 FIRST ADOPTING AFTER 2014.—If the first 

3 payment year for an eligible professional is 

4 after 2014 then the applicable amount 

5 specified in this subparagraph for such 

6 professional for such year and any subse7 quent year shall be $0. 

8 ‘‘(C) NON-APPLICATION TO HOSPITAL9 BASED ELIGIBLE PROFESSIONALS.— 

10 ‘‘(i) IN GENERAL.—No incentive pay11 ment may be made under this paragraph 

12 in the case of a hospital-based eligible pro13 fessional. 

14 ‘‘(ii) HOSPITAL-BASED ELIGIBLE PRO15 FESSIONAL.—For purposes of clause (i), 

16 the term ‘hospital-based eligible profes17 sional’ means, with respect to covered pro18 fessional services furnished by an eligible 

19 professional during the reporting period for 

20 a payment year, an eligible professional, 

21 such as a pathologist, anesthesiologist, or 

22 emergency physician, who furnishes sub23 stantially all of such services in a hospital 

24 setting (whether inpatient or outpatient) 

25 and through the use of the facilities and 


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1 equipment, including qualified electronic 

2 health records, of the hospital. 

3 ‘‘(D) PAYMENT.— 

4 ‘‘(i) FORM OF PAYMENT.—The pay5 ment under this paragraph may be in the 

6 form of a single consolidated payment or 

7 in the form of such periodic installments 

8 as the Secretary may specify. 

9 ‘‘(ii) COORDINATION OF APPLICATION

10 OF LIMITATION FOR PROFESSIONALS IN

11 DIFFERENT PRACTICES.—In the case of an 

12 eligible professional furnishing covered pro13 fessional services in more than one practice 

14 (as specified by the Secretary), the Sec15 retary shall establish rules to coordinate 

16 the incentive payments, including the ap17 plication of the limitation on amounts of 

18 such incentive payments under this para19 graph, among such practices. 

20 ‘‘(iii) COORDINATION WITH MED21 ICAID.—The Secretary shall seek, to the 

22 maximum extent practicable, to avoid du23 plicative requirements from Federal and 

24 State Governments to demonstrate mean25 ingful use of certified EHR technology 


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1 under this title and title XIX. In doing so, 

2 the Secretary may deem satisfaction of 

3 State requirements for such meaningful 

4 use for a payment year under title XIX to 

5 be sufficient to qualify as meaningful use 

6 under this subsection and subsection (a)(7) 

7 and vice versa. The Secretary may also ad8 just the reporting periods under such title 

9 and such subsections in order to carry out 

10 this clause. 

11 ‘‘(E) PAYMENT YEAR DEFINED.— 

12 ‘‘(i) IN GENERAL.—For purposes of 

13 this subsection, the term ‘payment year’ 

14 means a year beginning with 2011. 

15 ‘‘(ii) FIRST, SECOND, ETC. PAYMENT

16 YEAR.—The term ‘first payment year’ 

17 means, with respect to covered professional 

18 services furnished by an eligible profes19 sional, the first year for which an incentive 

20 payment is made for such services under 

21 this subsection. The terms ‘second pay22 ment year’, ‘third payment year’, ‘fourth 

23 payment year’, and ‘fifth payment year’ 

24 mean, with respect to covered professional 

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1 sional, each successive year immediately 

2 following the first payment year for such 

3 professional. 

4 ‘‘(2) MEANINGFUL EHR USER.— 

5 ‘‘(A) IN GENERAL.—For purposes of para6 graph (1), an eligible professional shall be 

7 treated as a meaningful EHR user for a report8 ing period for a payment year (or, for purposes 

9 of subsection (a)(7), for a reporting period 

10 under such subsection for a year) if each of the 

11 following requirements is met: 

12 ‘‘(i) MEANINGFUL USE OF CERTIFIED

13 EHR TECHNOLOGY.—The eligible profes14 sional demonstrates to the satisfaction of 

15 the Secretary, in accordance with subpara16 graph (C)(i), that during such period the 

17 professional is using certified EHR tech18 nology in a meaningful manner, which 

19 shall include the use of electronic pre20 scribing as determined to be appropriate 

21 by the Secretary. 

22 ‘‘(ii) INFORMATION EXCHANGE.—The 

23 eligible professional demonstrates to the 

24 satisfaction of the Secretary, in accordance 

25 with subparagraph (C)(i), that during such 


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1 period such certified EHR technology is 

2 connected in a manner that provides, in 

3 accordance with law and standards appli4 cable to the exchange of information, for 

5 the electronic exchange of health informa6 tion to improve the quality of health care, 

7 such as promoting care coordination. 

8 ‘‘(iii) REPORTING ON MEASURES

9 USING EHR.—Subject to subparagraph 

10 (B)(ii) and using such certified EHR tech11 nology, the eligible professional submits in12 formation for such period, in a form and 

13 manner specified by the Secretary, on such 

14 clinical quality measures and such other 

15 measures as selected by the Secretary 

16 under subparagraph (B)(i). 

17 The Secretary may provide for the use of alter18 native means for meeting the requirements of 

19 clauses (i), (ii), and (iii) in the case of an eligi20 ble professional furnishing covered professional 

21 services in a group practice (as defined by the 

22 Secretary). The Secretary shall seek to improve 

23 the use of electronic health records and health 

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1 gent measures of meaningful use selected under 

2 this paragraph. 

3 ‘‘(B) REPORTING ON MEASURES.— 

4 ‘‘(i) SELECTION.—The Secretary shall 

5 select measures for purposes of subpara6 graph (A)(iii) but only consistent with the 

7 following: 

8 ‘‘(I) The Secretary shall provide 

9 preference to clinical quality measures 

10 that have been endorsed by the entity 

11 with a contract with the Secretary 

12 under section 1890(a). 

13 ‘‘(II) Prior to any measure being 

14 selected under this subparagraph, the 

15 Secretary shall publish in the Federal 

16 Register such measure and provide for 

17 a period of public comment on such 

18 measure. 

19 ‘‘(ii) LIMITATION.—The Secretary 

20 may not require the electronic reporting of 

21 information on clinical quality measures 

22 under subparagraph (A)(iii) unless the 

23 Secretary has the capacity to accept the in24 formation electronically, which may be on 

25 a pilot basis. 


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1 ‘‘(iii) COORDINATION OF REPORTING

2 OF INFORMATION.—In selecting such 

3 measures, and in establishing the form and 

4 manner for reporting measures under sub5 paragraph (A)(iii), the Secretary shall seek 

6 to avoid redundant or duplicative reporting 

7 otherwise required, including reporting 

8 under subsection (k)(2)(C). 

9 ‘‘(C) DEMONSTRATION OF MEANINGFUL

10 USE OF CERTIFIED EHR TECHNOLOGY AND IN11 FORMATION EXCHANGE.— 

12 ‘‘(i) IN GENERAL.—A professional 

13 may satisfy the demonstration requirement 

14 of clauses (i) and (ii) of subparagraph (A) 

15 through means specified by the Secretary, 

16 which may include— 

17 ‘‘(I) an attestation; 

18 ‘‘(II) the submission of claims 

19 with appropriate coding (such as a 

20 code indicating that a patient encoun21 ter was documented using certified 

22 EHR technology); 

23 ‘‘(III) a survey response; 

24 ‘‘(IV) reporting under subpara25 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 ‘‘(3) APPLICATION.— 

11 ‘‘(A) PHYSICIAN REPORTING SYSTEM

12 RULES.—Paragraphs (5), (6), and (8) of sub13 section (k) shall apply for purposes of this sub14 section in the same manner as they apply for 

15 purposes of such subsection. 

16 ‘‘(B) COORDINATION WITH OTHER PAY17 MENTS.—The provisions of this subsection shall 

18 not be taken into account in applying the provi19 sions of subsection (m) of this section and of 

20 section 1833(m) and any payment under such 

21 provisions shall not be taken into account in 

22 computing allowable charges under this sub23 section. 

24 ‘‘(C) LIMITATIONS ON REVIEW.—There 

25 shall be no administrative or judicial review 


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1 under section 1869, section 1878, or otherwise 

2 of the determination of any incentive payment 

3 under this subsection and the payment adjust4 ment under subsection (a)(7), including the de5 termination of a meaningful EHR user under 

6 paragraph (2), a limitation under paragraph 

7 (1)(B), and the exception under subsection 

8 (a)(7)(B). 

9 ‘‘(D) POSTING ON WEBSITE.—The Sec10 retary shall post on the Internet website of the 

11 Centers for Medicare & Medicaid Services, in an 

12 easily understandable format, a list of the 

13 names, business addresses, and business phone 

14 numbers of the eligible professionals who are 

15 meaningful EHR users and, as determined ap16 propriate by the Secretary, of group practices 

17 receiving incentive payments under paragraph 

18 (1). 

19 ‘‘(4) CERTIFIED EHR TECHNOLOGY DEFINED.— 

20 For purposes of this section, the term ‘certified 

21 EHR technology’ means a qualified electronic health 

22 record (as defined in 3000(13) of the Public Health 

23 Service Act) that is certified pursuant to section 

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1 ble to the type of record involved (as determined by 

2 the Secretary, such as an ambulatory electronic 

3 health record for office-based physicians or an inpa4 tient hospital electronic health record for hospitals). 

5 ‘‘(5) DEFINITIONS.—For purposes of this sub6 section: 

7 ‘‘(A) COVERED PROFESSIONAL SERV8 ICES.—The term ‘covered professional services’ 

9 has the meaning given such term in subsection 

10 (k)(3). 

11 ‘‘(B) ELIGIBLE PROFESSIONAL.—The term 

12 ‘eligible professional’ means a physician, as de13 fined in section 1861(r). 

14 ‘‘(C) REPORTING PERIOD.—The term ‘re15 porting period’ means any period (or periods), 

16 with respect to a payment year, as specified by 

17 the Secretary.’’. 

18 (b) INCENTIVE PAYMENT ADJUSTMENT.—Section 

19 1848(a) of the Social Security Act (42 U.S.C. 1395w– 

20 4(a)) is amended by adding at the end the following new 

21 paragraph: 

22 ‘‘(7) INCENTIVES FOR MEANINGFUL USE OF

23 CERTIFIED EHR TECHNOLOGY.— 

24 ‘‘(A) ADJUSTMENT.— 


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1 ‘‘(i) IN GENERAL.—Subject to sub2 paragraphs (B) and (D), with respect to 

3 covered professional services furnished by 

4 an eligible professional during 2015 or any 

5 subsequent payment year, if the eligible 

6 professional is not a meaningful EHR user 

7 (as determined under subsection (o)(2)) for 

8 a reporting period for the year, the fee 

9 schedule amount for such services fur10 nished by such professional during the year 

11 (including the fee schedule amount for pur12 poses of determining a payment based on 

13 such amount) shall be equal to the applica14 ble percent of the fee schedule amount that 

15 would otherwise apply to such services 

16 under this subsection (determined after ap17 plication of paragraph (3) but without re18 gard to this paragraph). 

19 ‘‘(ii) APPLICABLE PERCENT.—Subject 

20 to clause (iii), for purposes of clause (i), 

21 the term ‘applicable percent’ means— 

22 ‘‘(I) for 2015, 99 percent (or, in 

23 the case of an eligible professional 

24 who was subject to the application of 


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1 the payment adjustment under section 

2 1848(a)(5) for 2014, 98 percent); 

3 ‘‘(II) for 2016, 98 percent; and 

4 ‘‘(III) for 2017 and each subse5 quent year, 97 percent. 

6 ‘‘(iii) AUTHORITY TO DECREASE AP7 PLICABLE PERCENTAGE FOR 2018 AND

8 SUBSEQUENT YEARS.—For 2018 and each 

9 subsequent year, if the Secretary finds that 

10 the proportion of eligible professionals who 

11 are meaningful EHR users (as determined 

12 under subsection (o)(2)) is less than 75 

13 percent, the applicable percent shall be de14 creased by 1 percentage point from the ap15 plicable percent in the preceding year, but 

16 in no case shall the applicable percent be 

17 less than 95 percent. 

18 ‘‘(B) SIGNIFICANT HARDSHIP EXCEP19 TION.—The Secretary may, on a case-by-case 

20 basis, exempt an eligible professional from the 

21 application of the payment adjustment under 

22 subparagraph (A) if the Secretary determines, 

23 subject to annual renewal, that compliance with 

24 the requirement for being a meaningful EHR 

25 user would result in a significant hardship, such 


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1 as in the case of an eligible professional who 

2 practices in a rural area without sufficient 

3 Internet access. In no case may an eligible pro4 fessional be granted an exemption under this 

5 subparagraph for more than 5 years. 

6 ‘‘(C) APPLICATION OF PHYSICIAN REPORT7 ING SYSTEM RULES.—Paragraphs (5), (6), and 

8 (8) of subsection (k) shall apply for purposes of 

9 this paragraph in the same manner as they 

10 apply for purposes of such subsection. 

11 ‘‘(D) NON-APPLICATION TO HOSPITAL12 BASED ELIGIBLE PROFESSIONALS.—No pay13 ment adjustment may be made under subpara14 graph (A) in the case of hospital-based eligible 

15 professionals (as defined in subsection 

16 (o)(1)(C)(ii)). 

17 ‘‘(E) DEFINITIONS.—For purposes of this 

18 paragraph: 

19 ‘‘(i) COVERED PROFESSIONAL SERV20 ICES.—The term ‘covered professional 

21 services’ has the meaning given such term 

22 in subsection (k)(3). 

23 ‘‘(ii) ELIGIBLE PROFESSIONAL.—The 

24 term ‘eligible professional’ means a physi25 cian, as defined in section 1861(r). 


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1 ‘‘(iii) REPORTING PERIOD.—The term 

2 ‘reporting period’ means, with respect to a 

3 year, a period specified by the Secretary.’’. 

4 (c) APPLICATION TO CERTAIN MA-AFFILIATED ELI5 GIBLE PROFESSIONALS.—Section 1853 of the Social Secu6 rity Act (42 U.S.C. 1395w–23) is amended by adding at 

7 the end the following new subsection: 

8 ‘‘(l) APPLICATION OF ELIGIBLE PROFESSIONAL IN9 CENTIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOP10 TION AND MEANINGFUL USE OF CERTIFIED EHR TECH11 NOLOGY.— 

12 ‘‘(1) IN GENERAL.—Subject to paragraphs (3) 

13 and (4), in the case of a qualifying MA organization, 

14 the provisions of sections 1848(o) and 1848(a)(7) 

15 shall apply with respect to eligible professionals de16 scribed in paragraph (2) of the organization who the 

17 organization attests under paragraph (6) to be 

18 meaningful EHR users in a similar manner as they 

19 apply to eligible professionals under such sections. 

20 Incentive payments under paragraph (3) shall be 

21 made to and payment adjustments under paragraph 

22 (4) shall apply to such qualifying organizations. 

23 ‘‘(2) ELIGIBLE PROFESSIONAL DESCRIBED.— 

24 With respect to a qualifying MA organization, an eli25 gible professional described in this paragraph is an 


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1 eligible professional (as defined for purposes of sec2 tion 1848(o)) who— 

3 ‘‘(A)(i) is employed by the organization; or 

4 ‘‘(ii)(I) is employed by, or is a partner of, 

5 an entity that through contract with the organi6 zation furnishes at least 80 percent of the enti7 ty’s patient care services to enrollees of such or8 ganization; and 

9 ‘‘(II) furnishes at least 75 percent of the 

10 professional services of the eligible professional 

11 to enrollees of the organization; and 

12 ‘‘(B) furnishes, on average, at least 20 

13 hours per week of patient care services. 

14 ‘‘(3) ELIGIBLE PROFESSIONAL INCENTIVE PAY15 MENTS.— 

16 ‘‘(A) IN GENERAL.—In applying section 

17 1848(o) under paragraph (1), instead of the ad18 ditional payment amount under section 

19 1848(o)(1)(A) and subject to subparagraph 

20 (B), the Secretary may substitute an amount 

21 determined by the Secretary to the extent fea22 sible and practical to be similar to the esti23 mated amount in the aggregate that would be 

24 payable if payment for services furnished by 


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1 such professionals was payable under part B in2 stead of this part. 

3 ‘‘(B) AVOIDING DUPLICATION OF PAY4 MENTS.— 

5 ‘‘(i) IN GENERAL.—If an eligible pro6 fessional described in paragraph (2) is eli7 gible for the maximum incentive payment 

8 under section 1848(o)(1)(A) for the same 

9 payment period, the payment incentive 

10 shall be made only under such section and 

11 not under this subsection. 

12 ‘‘(ii) METHODS.—In the case of an el13 igible professional described in paragraph 

14 (2) who is eligible for an incentive payment 

15 under section 1848(o)(1)(A) but is not de16 scribed in clause (i) for the same payment 

17 period, the Secretary shall develop a proc18 ess— 

19 ‘‘(I) to ensure that duplicate pay20 ments are not made with respect to 

21 an eligible professional both under 

22 this subsection and under section 

23 1848(o)(1)(A); and 


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1 ‘‘(II) to collect data from Medi2 care Advantage organizations to en3 sure against such duplicate payments. 

4 ‘‘(C) FIXED SCHEDULE FOR APPLICATION

5 OF LIMITATION ON INCENTIVE PAYMENTS FOR

6 ALL ELIGIBLE PROFESSIONALS.—In applying 

7 section 1848(o)(1)(B)(ii) under subparagraph 

8 (A), in accordance with rules specified by the 

9 Secretary, a qualifying MA organization shall 

10 specify a year (not earlier than 2011) that shall 

11 be treated as the first payment year for all eli12 gible professionals with respect to such organi13 zation. 

14 ‘‘(D) CAP FOR ECONOMIES OF SCALE.—In 

15 no case may an incentive payment be made 

16 under this subsection, including under subpara17 graph (A), to a qualifying MA organization with 

18 respect to more than 5,000 eligible profes19 sionals of the organization. 

20 ‘‘(4) PAYMENT ADJUSTMENT.— 

21 ‘‘(A) IN GENERAL.—In applying section 

22 1848(a)(7) under paragraph (1), instead of the 

23 payment adjustment being an applicable per24 cent of the fee schedule amount for a year 

25 under such section, subject to subparagraph 


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1 (D), the payment adjustment under paragraph 

2 (1) shall be equal to the percent specified in 

3 subparagraph (B) for such year of the payment 

4 amount otherwise provided under this section 

5 for such year. 

6 ‘‘(B) SPECIFIED PERCENT.—The percent 

7 specified under this subparagraph for a year is 

8 100 percent minus a number of percentage 

9 points equal to the product of— 

10 ‘‘(i) a percentage equal to 100 percent 

11 reduced by the applicable percent (under 

12 section 1848(a)(7)(A)(ii)) for the year; and 

13 ‘‘(ii) a percentage equal to the Sec14 retary’s estimate of the proportion for the 

15 year, of the expenditures under parts A 

16 and B that are not attributable to this 

17 part, that are attributable to expenditures 

18 for physicians’ services. 

19 ‘‘(C) APPLICATION OF PAYMENT ADJUST20 MENT.—In the case that a qualifying MA orga21 nization attests that not all eligible profes22 sionals of the organization are meaningful EHR 

23 users with respect to a year, the Secretary shall 

24 apply the payment adjustment under this para25 graph based on the proportion of all eligible 


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1 professionals of the organization that are not 

2 meaningful EHR users for such year. If the 

3 number of eligible professionals of the organiza4 tion that are not meaningful EHR users for 

5 such year exceeds 5,000, such number shall be 

6 reduced to 5,000 for purposes of determining 

7 the proportion under the preceding sentence. 

8 ‘‘(5) QUALIFYING MA ORGANIZATION DE9 FINED.—In this subsection and subsection (m), the 

10 term ‘qualifying MA organization’ means a Medicare 

11 Advantage organization that is organized as a health 

12 maintenance organization (as defined in section 

13 2791(b)(3) of the Public Health Service Act). 

14 ‘‘(6) MEANINGFUL EHR USER ATTESTATION.— 

15 For purposes of this subsection and subsection (m), 

16 a qualifying MA organization shall submit an attes17 tation, in a form and manner specified by the Sec18 retary which may include the submission of such at19 testation as part of submission of the initial bid 

20 under section 1854(a)(1)(A)(iv), identifying— 

21 ‘‘(A) whether each eligible professional de22 scribed in paragraph (2), with respect to such 

23 organization is a meaningful EHR user (as de24 fined in section 1848(o)(2)) for a year specified 

25 by the Secretary; and 


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1 ‘‘(B) whether each eligible hospital de2 scribed in subsection (m)(1), with respect to 

3 such organization, is a meaningful EHR user 

4 (as defined in section 1886(n)(3)) for an appli5 cable period specified by the Secretary. 

6 ‘‘(7) POSTING ON WEBSITE.—The Secretary 

7 shall post on the Internet website of the Centers for 

8 Medicare & Medicaid Services, in an easily under9 standable format, a list of the names, business ad10 dresses, and business phone numbers of— 

11 ‘‘(A) each qualifying MA organization re12 ceiving an incentive payment under this sub13 section for eligible professionals of the organiza14 tion; and 

15 ‘‘(B) the eligible professionals of such or16 ganization for which such incentive payment is 

17 based.’’. 

18 (d) CONFORMING AMENDMENTS.—Section 1853 of 

19 the Social Security Act (42 U.S.C. 1395w–23) is amend20 ed— 

21 (1) in subsection (a)(1)(A), by striking ‘‘and 

22 (i)’’ and inserting ‘‘(i), and (l)’’; 

23 (2) in subsection (c)— 


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1 (A) in paragraph (1)(D)(i), by striking 

2 ‘‘section 1886(h)’’ and inserting ‘‘sections 

3 1848(o) and 1886(h)’’; and 

4 (B) in paragraph (6)(A), by inserting after 

5 ‘‘under part B,’’ the following: ‘‘excluding ex6 penditures attributable to subsections (a)(7) 

7 and (o) of section 1848,’’; and 

8 (3) in subsection (f), by inserting ‘‘and for pay9 ments under subsection (l)’’ after ‘‘with the organi10 zation’’. 

11 (e) CONFORMING AMENDMENTS TO E-PRE12 SCRIBING.— 

13 (1) Section 1848(a)(5)(A) of the Social Security 

14 Act (42 U.S.C. 1395w–4(a)(5)(A)) is amended— 

15 (A) in clause (i), by striking ‘‘or any sub16 sequent year’’ and inserting ‘‘, 2013, or 2014’’; 

17 and 

18 (B) in clause (ii), by striking ‘‘and each 

19 subsequent year’’. 

20 (2) Section 1848(m)(2) of such Act (42 U.S.C. 

21 1395w–4(m)(2)) is amended— 

22 (A) in subparagraph (A), by striking ‘‘For 

23 2009’’ and inserting ‘‘Subject to subparagraph 

24 (D), for 2009’’; and 


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1 (B) by adding at the end the following new 

2 subparagraph: 

3 ‘‘(D) LIMITATION WITH RESPECT TO EHR

4 INCENTIVE PAYMENTS.—The provisions of this 

5 paragraph shall not apply to an eligible profes6 sional (or, in the case of a group practice under 

7 paragraph (3)(C), to the group practice) if, for 

8 the reporting period the eligible professional (or 

9 group practice) receives an incentive payment 

10 under subsection (o)(1)(A) with respect to a 

11 certified EHR technology (as defined in sub12 section (o)(4)) that has the capability of elec13 tronic prescribing.’’. 

14 (f) PROVIDING ASSISTANCE TO ELIGIBLE PROFES15 SIONALS AND CERTAIN HOSPITALS.— 

16 (1) IN GENERAL.—The Secretary of Health and 

17 Human Services shall provide assistance to eligible 

18 professionals (as defined in section 1848(o)(5), as 

19 added by subsection (a)), Medicaid providers (as de20 fined in section 1903(t)(2) of such Act, as added by 

21 section 4211(a)), and eligible hospitals (as defined in 

22 section 1886(n)(6)(A) of such Act, as added by sec23 tion 4202(a)) located in rural or other medically un24 derserved areas to successfully choose, implement, 

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1 tion 1848(o)(4) of the Social Security Act, as added 

2 by section 4201(a)). 

3 (2) USE OF ENTITIES WITH EXPERTISE.—To 

4 the extent practicable, the Secretary shall provide 

5 such assistance through entities that have expertise 

6 in the choice, implementation, and use of such cer7 tified EHR technology. 

8 SEC. 4202. INCENTIVES FOR HOSPITALS. 

9 (a) INCENTIVE PAYMENT.—Section 1886 of the So10 cial Security Act (42 U.S.C. 1395ww) is amended by add11 ing at the end the following new subsection: 

12 ‘‘(n) INCENTIVES FOR ADOPTION AND MEANINGFUL

13 USE OF CERTIFIED EHR TECHNOLOGY.— 

14 ‘‘(1) IN GENERAL.—Subject to the succeeding 

15 provisions of this subsection, with respect to inpa16 tient hospital services furnished by an eligible hos17 pital during a payment year (as defined in para18 graph (2)(G)), if the eligible hospital is a meaningful 

19 EHR user (as determined under paragraph (3)) for 

20 the reporting period with respect to such year, in ad21 dition to the amount otherwise paid under this sec22 tion, there also shall be paid to the eligible hospital, 

23 from the Federal Hospital Insurance Trust Fund es24 tablished under section 1817, an amount equal to 


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1 the applicable amount specified in paragraph (2)(A) 

2 for the hospital for such payment year. 

3 ‘‘(2) PAYMENT AMOUNT.— 

4 ‘‘(A) IN GENERAL.—Subject to the suc5 ceeding subparagraphs of this paragraph, the 

6 applicable amount specified in this subpara7 graph for an eligible hospital for a payment 

8 year is equal to the product of the following: 

9 ‘‘(i) INITIAL AMOUNT.—The sum of— 

10 ‘‘(I) the base amount specified in 

11 subparagraph (B); plus 

12 ‘‘(II) the discharge related 

13 amount specified in subparagraph (C) 

14 for a 12-month period selected by the 

15 Secretary with respect to such pay16 ment year. 

17 ‘‘(ii) MEDICARE SHARE.—The Medi18 care share as specified in subparagraph 

19 (D) for the hospital for a period selected 

20 by the Secretary with respect to such pay21 ment year. 

22 ‘‘(iii) TRANSITION FACTOR.—The 

23 transition factor specified in subparagraph 

24 (E) 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 

6 the Secretary shall be determined as the sum of 

7 the amount, based upon total discharges (re8 gardless of any source of payment) for the pe9 riod, for each discharge up to the 23,000th dis10 charge as 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 

22 for a payment year is equal to the fraction— 

23 ‘‘(i) the numerator of which is the 

24 sum (for such period and with respect to 

25 the hospital) 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 inpatient7 bed-days (as so established) which are 

8 attributable 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 

22 the total amount of the hospital’s 

23 charges during such period. 

24 Insofar as the Secretary determines that data 

25 are not available on charity care necessary to 


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1 calculate 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 

5 care including a downward adjustment to elimi6 nate bad debt data from uncompensated care 

7 data. In the absence of the data necessary, with 

8 respect to a hospital, for the Secretary to com9 pute the amount described in clause (ii)(II), the 

10 amount under such clause shall be deemed to 

11 be 1. In the absence of data, with respect to a 

12 hospital, necessary to compute the amount de13 scribed in clause (i)(II), the amount under such 

14 clause shall be 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 pay4 ment year for such hospital, 0. 

5 ‘‘(ii) PHASE DOWN FOR ELIGIBLE

6 HOSPITALS FIRST ADOPTING EHR AFTER

7 2013.—If the first payment year for an eli8 gible hospital is after 2013, then the tran9 sition factor specified in this subparagraph 

10 for a payment year for such hospital is the 

11 same as the amount specified in clause (i) 

12 for such payment year for an eligible hos13 pital for which the first payment year is 

14 2013. If the first payment year for an eli15 gible hospital is after 2015 then the transi16 tion factor specified in this subparagraph 

17 for such hospital and for such year and 

18 any subsequent year shall be 0. 

19 ‘‘(F) FORM OF PAYMENT.—The payment 

20 under this subsection for a payment year may 

21 be in the form of a single consolidated payment 

22 or in the form of such periodic installments as 

23 the 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 pay12 ment year’, ‘third payment year’, and 

13 ‘fourth payment year’ mean, with respect 

14 to an eligible hospital, each successive year 

15 immediately following the first payment 

16 year for 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 

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1 riod for a payment year (or, for purposes of 

2 subsection (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 

15 with subparagraph (C)(i), that during such 

16 period such certified EHR technology is 

17 connected in a manner that provides, in 

18 accordance with law and standards appli19 cable to the exchange of information, for 

20 the electronic exchange of health informa21 tion to improve the quality of health care, 

22 such as promoting care coordination. 

23 ‘‘(iii) REPORTING ON MEASURES

24 USING EHR.—Subject to subparagraph 

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1 nology, the eligible hospital submits infor2 mation for such period, in a form and 

3 manner specified by the Secretary, on such 

4 clinical quality measures and such other 

5 measures as selected by the Secretary 

6 under subparagraph (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 para11 graph. 

12 ‘‘(B) REPORTING ON MEASURES.— 

13 ‘‘(i) SELECTION.—The Secretary shall 

14 select measures for purposes of subpara15 graph (A)(iii) but only consistent with the 

16 following: 

17 ‘‘(I) The Secretary shall provide 

18 preference to clinical quality measures 

19 that have been selected for purposes 

20 of applying subsection (b)(3)(B)(viii) 

21 or that have been endorsed by the en22 tity with a contract with the Secretary 

23 under section 1890(a). 

24 ‘‘(II) Prior to any measure (other 

25 than a clinical quality measure that 


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1 has been selected for purposes of ap2 plying subsection (b)(3)(B)(viii)) 

3 being selected under this subpara4 graph, the Secretary shall publish in 

5 the Federal Register such measure 

6 and provide for a period of public 

7 comment on such measure. 

8 ‘‘(ii) LIMITATIONS.—The Secretary 

9 may not require the electronic reporting of 

10 information on clinical quality measures 

11 under subparagraph (A)(iii) unless the 

12 Secretary has the capacity to accept the in13 formation electronically, which may be on 

14 a pilot basis. 

15 ‘‘(iii) COORDINATION OF REPORTING

16 OF INFORMATION.—In selecting such 

17 measures, and in establishing the form and 

18 manner for reporting measures under sub19 paragraph (A)(iii), the Secretary shall seek 

20 to avoid redundant or duplicative reporting 

21 with reporting otherwise required, includ22 ing reporting under subsection 

23 (b)(3)(B)(viii). 


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1 ‘‘(C) DEMONSTRATION OF MEANINGFUL

2 USE OF CERTIFIED EHR TECHNOLOGY AND IN3 FORMATION EXCHANGE.— 

4 ‘‘(i) IN GENERAL.—A hospital may 

5 satisfy the demonstration requirement of 

6 clauses (i) and (ii) of subparagraph (A) 

7 through means specified by the Secretary, 

8 which may include— 

9 ‘‘(I) an attestation; 

10 ‘‘(II) the submission of claims 

11 with appropriate coding (such as a 

12 code indicating that inpatient care 

13 was documented using certified EHR 

14 technology); 

15 ‘‘(III) a survey response; 

16 ‘‘(IV) reporting under subpara17 graph (A)(iii); and 

18 ‘‘(V) other means specified by the 

19 Secretary. 

20 ‘‘(ii) USE OF PART D DATA.—Not21 withstanding sections 1860D–15(d)(2)(B) 

22 and 1860D–15(f)(2), the Secretary may 

23 use data regarding drug claims submitted 

24 for purposes of section 1860D–15 that are 


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1 necessary for purposes of subparagraph 

2 (A). 

3 ‘‘(4) APPLICATION.— 

4 ‘‘(A) LIMITATIONS ON REVIEW.—There 

5 shall be no administrative or judicial review 

6 under section 1869, section 1878, or otherwise 

7 of the determination of any incentive payment 

8 under this subsection and the payment adjust9 ment under subsection (b)(3)(B)(ix), including 

10 the determination of a meaningful EHR user 

11 under paragraph (3), determination of meas12 ures applicable to services furnished by eligible 

13 hospitals under this subsection, and the excep14 tion under subsection (b)(3)(B)(ix)(II). 

15 ‘‘(B) POSTING ON WEBSITE.—The Sec16 retary shall post on the Internet website of the 

17 Centers for Medicare & Medicaid Services, in an 

18 easily understandable format, a list of the 

19 names of the eligible hospitals that are mean20 ingful EHR users under this subsection or sub21 section (b)(3)(B)(ix) and other relevant data as 

22 determined appropriate by the Secretary. The 

23 Secretary shall ensure that a hospital has the 

24 opportunity to review the other relevant data 


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1 that are to be made public with respect to the 

2 hospital prior to such data being made public. 

3 ‘‘(5) CERTIFIED EHR TECHNOLOGY DEFINED.— 

4 The term ‘certified EHR technology’ has the mean5 ing given such term in section 1848(o)(4). 

6 ‘‘(6) DEFINITIONS.—For purposes of this sub7 section: 

8 ‘‘(A) ELIGIBLE HOSPITAL.—The term ‘eli9 gible hospital’ means— 

10 ‘‘(i) a subsection (d) hospital; and 

11 ‘‘(ii) a critical access hospital (as de12 fined in section 1861(mm)(1)). 

13 ‘‘(B) REPORTING PERIOD.—The term ‘re14 porting period’ means any period (or periods), 

15 with respect to a payment year, as specified by 

16 the Secretary.’’. 

17 (b) INCENTIVE MARKET BASKET ADJUSTMENT.— 

18 (1) IN GENERAL.—Section 1886(b)(3)(B) of 

19 the Social Security Act (42 U.S.C. 

20 1395ww(b)(3)(B)) is amended— 

21 (A) in clause (viii)(I), by inserting ‘‘(or, 

22 beginning with fiscal year 2016, by one-quar23 ter)’’ after ‘‘2.0 percentage points’’; and 

24 (B) by adding at the end the following new 

25 clause: 


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1 ‘‘(ix)(I) For purposes of clause (i) for fiscal year 

2 2015 and each subsequent fiscal year, in the case of an 

3 eligible hospital (as defined in subsection (n)(6)(A)) that 

4 is not a meaningful EHR user (as defined in subsection 

5 (n)(3)) for the reporting period for such fiscal year, three6 quarters of the applicable percentage increase otherwise 

7 applicable under clause (i) for such fiscal year shall be 

reduced by 331⁄3 percent for fiscal year 2015, 662 8 ⁄3 per9 cent for fiscal year 2016, and 100 percent for fiscal year 

10 2017 and each subsequent fiscal year. Such reduction 

11 shall apply only with respect to the fiscal year involved 

12 and the Secretary shall not take into account such reduc13 tion in computing the applicable percentage increase under 

14 clause (i) for a subsequent fiscal year. 

15 ‘‘(II) The Secretary may, on a case-by-case basis, ex16 empt a subsection (d) hospital from the application of sub17 clause (I) with respect to a fiscal year if the Secretary 

18 determines, subject to annual renewal, that requiring such 

19 hospital to be a meaningful EHR user during such fiscal 

20 year would result in a significant hardship, such as in the 

21 case of a hospital in a rural area without sufficient Inter22 net access. In no case may a hospital be granted an ex23 emption under this subclause for more than 5 years. 

24 ‘‘(III) For fiscal year 2015 and each subsequent fis25 cal year, a State in which hospitals are paid for services 


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1 under section 1814(b)(3) shall adjust the payments to 

2 each subsection (d) hospital in the State that is not a 

3 meaningful EHR user (as defined in subsection (n)(3)) 

4 in a manner that is designed to result in an aggregate 

5 reduction in payments to hospitals in the State that is 

6 equivalent to the aggregate reduction that would have oc7 curred if payments had been reduced to each subsection 

8 (d) hospital in the State in a manner comparable to the 

9 reduction under the previous provisions of this clause. The 

10 State shall report to the Secretary the methodology it will 

11 use to make the payment adjustment under the previous 

12 sentence. 

13 ‘‘(IV) For purposes of this clause, the term ‘reporting 

14 period’ means, with respect to a fiscal year, any period 

15 (or periods), with respect to the fiscal year, as specified 

16 by the Secretary.’’. 

17 (2) CRITICAL ACCESS HOSPITALS.—Section 

18 1814(l) of the Social Security Act (42 U.S.C. 

19 1395f(l)) is amended— 

20 (A) in subparagraph (1), by striking 

21 ‘‘paragraph (2)’’ and inserting ‘‘paragraphs (2) 

22 and (3)’’; and 

23 (B) by adding at the end the following new 

24 paragraph: 


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1 ‘‘(3)(A) Subject to subparagraph (B), for fiscal year 

2 2015 and each subsequent fiscal year, in the case of a 

3 critical access hospital that is not a meaningful EHR user 

4 (as defined in section 1886(n)(3)) for the reporting period 

5 for such fiscal year, paragraph (1) shall be applied by sub6 stituting the applicable percent under subparagraph (C) 

7 for the percent described in such paragraph (1). 

8 ‘‘(B) The Secretary may, on a case-by-case basis, ex9 empt a critical access hospital from the application of sub10 paragraph (A) with respect to a fiscal year if the Secretary 

11 determines, subject to annual renewal, that requiring such 

12 hospital to be a meaningful EHR user during such fiscal 

13 year would result in a significant hardship, such as in the 

14 case of a hospital in a rural area without sufficient Inter15 net access. In no case may a hospital be granted an ex16 emption under this subparagraph for more than 5 years. 

17 ‘‘(C) The percent described in this subparagraph is— 

18 ‘‘(i) for fiscal year 2015, 100.66 percent; 

19 ‘‘(ii) for fiscal year 2016, 100.33 percent; and 

20 ‘‘(iii) for fiscal year 2017 and each subsequent 

21 fiscal year, 100 percent.’’. 

22 (c) APPLICATION TO CERTAIN MA-AFFILIATED ELI23 GIBLE HOSPITALS.—Section 1853 of the Social Security 

24 Act (42 U.S.C. 1395w-23), as amended by section 


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1 4201(c), is further amended by adding at the end the fol2 lowing new subsection: 

3 ‘‘(m) APPLICATION OF ELIGIBLE HOSPITAL INCEN4 TIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOPTION

5 AND MEANINGFUL USE OF CERTIFIED EHR TECH6 NOLOGY.— 

7 ‘‘(1) APPLICATION.—Subject to paragraphs (3) 

8 and (4), in the case of a qualifying MA organization, 

9 the provisions of sections 1814(l)(3), 1886(n), and 

10 1886(b)(3)(B)(ix) shall apply with respect to eligible 

11 hospitals described in paragraph (2) of the organiza12 tion which the organization attests under subsection 

13 (l)(6) to be meaningful EHR users in a similar man14 ner as they apply to eligible hospitals under such 

15 sections. Incentive payments under paragraph (3) 

16 shall be made to and payment adjustments under 

17 paragraph (4) shall apply to such qualifying organi18 zations. 

19 ‘‘(2) ELIGIBLE HOSPITAL DESCRIBED.—With 

20 respect to a qualifying MA organization, an eligible 

21 hospital described in this paragraph is an eligible 

22 hospital (as defined in section 1886(n)(6)(A)) that is 

23 under common corporate governance with such orga24 nization and serves individuals enrolled under an 

25 MA plan offered by such organization. 


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1 ‘‘(3) ELIGIBLE HOSPITAL INCENTIVE PAY2 MENTS.— 

3 ‘‘(A) IN GENERAL.—In applying section 

4 1886(n)(2) under paragraph (1), instead of the 

5 additional payment amount under section 

6 1886(n)(2), there shall be substituted an 

7 amount determined by the Secretary to be simi8 lar to the estimated amount in the aggregate 

9 that would be payable if payment for services 

10 furnished by such hospitals was payable under 

11 part A instead of this part. In implementing the 

12 previous sentence, the Secretary— 

13 ‘‘(i) shall, insofar as data to deter14 mine the discharge related amount under 

15 section 1886(n)(2)(C) for an eligible hos16 pital are not available to the Secretary, use 

17 such alternative data and methodology to 

18 estimate such discharge related amount as 

19 the Secretary determines appropriate; and 

20 ‘‘(ii) shall, insofar as data to deter21 mine the medicare share described in sec22 tion 1886(n)(2)(D) for an eligible hospital 

23 are not available to the Secretary, use such 

24 alternative data and methodology to esti25 mate such share, which data and methodVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00709 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ology may include use of the inpatient bed 

2 days (or discharges) with respect to an eli3 gible hospital during the appropriate pe4 riod which are attributable to both individ5 uals for whom payment may be made 

6 under part A or individuals enrolled in an 

7 MA plan under a Medicare Advantage or8 ganization under this part as a proportion 

9 of the total number of patient-bed-days (or 

10 discharges) with respect to such hospital 

11 during such period. 

12 ‘‘(B) AVOIDING DUPLICATION OF PAY13 MENTS.— 

14 ‘‘(i) IN GENERAL.—In the case of a 

15 hospital that for a payment year is an eli16 gible hospital described in paragraph (2) 

17 and for which at least one-third of their 

18 discharges (or bed-days) of Medicare pa19 tients for the year are covered under part 

20 A, payment for the payment year shall be 

21 made only under section 1886(n) and not 

22 under this subsection. 

23 ‘‘(ii) METHODS.—In the case of a 

24 hospital that is an eligible hospital de25 scribed in paragraph (2) and also is eligiVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00710 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ble for an incentive payment under section 

2 1886(n) but is not described in clause (i) 

3 for the same payment period, the Secretary 

4 shall develop a process— 

5 ‘‘(I) to ensure that duplicate pay6 ments are not made with respect to 

7 an eligible hospital both under this 

8 subsection and under section 1886(n); 

9 and 

10 ‘‘(II) to collect data from Medi11 care Advantage organizations to en12 sure against such duplicate payments. 

13 ‘‘(4) PAYMENT ADJUSTMENT.— 

14 ‘‘(A) Subject to paragraph (3), in the case 

15 of a qualifying MA organization (as defined in 

16 section 1853(l)(5)), if, according to the attesta17 tion of the organization submitted under sub18 section (l)(6) for an applicable period, one or 

19 more eligible hospitals (as defined in section 

20 1886(n)(6)(A)) that are under common cor21 porate governance with such organization and 

22 that serve individuals enrolled under a plan of23 fered by such organization are not meaningful 

24 EHR users (as defined in section 1886(n)(3)) 

25 with respect to a period, the payment amount 


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1 payable under this section for such organization 

2 for such period shall be the percent specified in 

3 subparagraph (B) for such period of the pay4 ment amount otherwise provided under this sec5 tion for such period. 

6 ‘‘(B) SPECIFIED PERCENT.—The percent 

7 specified under this subparagraph for a year is 

8 100 percent minus a number of percentage 

9 points equal to the product of— 

10 ‘‘(i) the number of the percentage 

11 point reduction effected under section 

12 1886(b)(3)(B)(ix)(I) for the period; and 

13 ‘‘(ii) the Medicare hospital expendi14 ture proportion specified in subparagraph 

15 (C) for the year. 

16 ‘‘(C) MEDICARE HOSPITAL EXPENDITURE

17 PROPORTION.—The Medicare hospital expendi18 ture proportion under this subparagraph for a 

19 year is the Secretary’s estimate of the propor20 tion, of the expenditures under parts A and B 

21 that are not attributable to this part, that are 

22 attributable to expenditures for inpatient hos23 pital services. 

24 ‘‘(D) APPLICATION OF PAYMENT ADJUST25 MENT.—In the case that a qualifying MA orgaVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00712 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 nization attests that not all eligible hospitals 

2 are meaningful EHR users with respect to an 

3 applicable period, the Secretary shall apply the 

4 payment adjustment under this paragraph 

5 based on a methodology specified by the Sec6 retary, taking into account the proportion of 

7 such eligible hospitals, or discharges from such 

8 hospitals, that are not meaningful EHR users 

9 for such period. 

10 ‘‘(5) POSTING ON WEBSITE.—The Secretary 

11 shall post on the Internet website of the Centers for 

12 Medicare & Medicaid Services, in an easily under13 standable format— 

14 ‘‘(A) a list of the names, business address15 es, and business phone numbers of each quali16 fying MA organization receiving an incentive 

17 payment under this subsection for eligible hos18 pitals described in paragraph (2); and 

19 ‘‘(B) a list of the names of the eligible hos20 pitals for which such incentive payment is 

21 based.’’. 

22 (d) CONFORMING AMENDMENTS.— 

23 (1) Section 1814(b) of the Social Security Act 

24 (42 U.S.C. 1395f(b)) is amended— 


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1 (A) in paragraph (3), in the matter pre2 ceding subparagraph (A), by inserting ‘‘, sub3 ject to section 1886(d)(3)(B)(ix)(III),’’ after 

4 ‘‘then’’; and 

5 (B) by adding at the end the following: 

6 ‘‘For purposes of applying paragraph (3), there 

7 shall be taken into account incentive payments, 

8 and payment adjustments under subsection 

9 (b)(3)(B)(ix) or (n) of section 1886.’’. 

10 (2) Section 1851(i)(1) of the Social Security 

11 Act (42 U.S.C. 1395w–21(i)(1)) is amended by 

12 striking ‘‘and 1886(h)(3)(D)’’ and inserting 

13 ‘‘1886(h)(3)(D), and 1853(m)’’. 

14 (3) Section 1853 of the Social Security Act (42 

15 U.S.C. 1395w–23), as amended by section 

16 4311(d)(1), is amended— 

17 (A) in subsection (c)— 

18 (i) in paragraph (1)(D)(i), by striking 

19 ‘‘1848(o)’’ and inserting ‘‘, 1848(o), and 

20 1886(n)’’; and 

21 (ii) in paragraph (6)(A), by inserting 

22 ‘‘and subsections (b)(3)(B)(ix) and (n) of 

23 section 1886’’ after ‘‘section 1848’’; and 

24 (B) in subsection (f), by inserting ‘‘and 

25 subsection (m)’’ after ‘‘under subsection (l)’’. 


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1 SEC. 4203. PREMIUM HOLD HARMLESS AND IMPLEMENTA2 TION FUNDING. 

3 (a) PREMIUM HOLD HARMLESS.— 

4 (1) IN GENERAL.—Section 1839(a)(1) of the 

5 Social Security Act (42 U.S.C. 1395r(a)(1)) is 

6 amended by adding at the end the following: ‘‘In ap7 plying this paragraph there shall not be taken into 

8 account additional payments under section 1848(o) 

9 and section 1853(l)(3) and the Government con10 tribution under section 1844(a)(3).’’. 

11 (2) PAYMENT.—Section 1844(a) of such Act 

12 (42 U.S.C. 1395w(a)) is amended— 

13 (A) in paragraph (2), by striking the pe14 riod at the end and inserting ‘‘; plus’’; and 

15 (B) by adding at the end the following new 

16 paragraph: 

17 ‘‘(3) a Government contribution equal to the 

18 amount of payment incentives payable under sec19 tions 1848(o) and 1853(l)(3).’’. 

20 (b) IMPLEMENTATION FUNDING.—In addition to 

21 funds otherwise available, out of any funds in the Treas22 ury not otherwise appropriated, there are appropriated to 

23 the Secretary of Health and Human Services for the Cen24 ter for Medicare & Medicaid Services Program Manage25 ment Account, $100,000,000 for each of fiscal years 2009 

26 through 2015 and $45,000,000 for each succeeding fiscal 


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1 year through fiscal year 2018, which shall be available for 

2 purposes of carrying out the provisions of (and amend3 ments made by) this part. Amounts appropriated under 

4 this subsection for a fiscal year shall be available until ex5 pended. 

6 SEC. 4204. NON-APPLICATION OF PHASED-OUT INDIRECT 

7 MEDICAL EDUCATION (IME) ADJUSTMENT 

8 FACTOR FOR FISCAL YEAR 2009. 

9 (a) IN GENERAL.—Section 412.322 of title 42, Code 

10 of Federal Regulations, shall be applied without regard to 

11 paragraph (c) of such section, and the Secretary of Health 

12 and Human Services shall recompute payments for dis13 charges occurring on or after October 1, 2008, as if such 

14 paragraph had never been in effect. 

15 (b) NO EFFECT ON SUBSEQUENT YEARS.—Nothing 

16 in subsection (a) shall be construed as having any effect 

17 on the application of paragraph (d) of section 412.322 of 

18 title 42, Code of Federal Regulations. 

19 SEC. 4205. STUDY ON APPLICATION OF EHR PAYMENT IN20 CENTIVES FOR PROVIDERS NOT RECEIVING 

21 OTHER INCENTIVE PAYMENTS. 

22 (a) STUDY.— 

23 (1) IN GENERAL.—The Secretary of Health and 

24 Human Services shall conduct a study to determine 

25 the extent to which and manner in which payment 


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1 incentives (such as under title XVIII or XIX of the 

2 Social Security Act) and other funding for purposes 

3 of implementing and using certified EHR technology 

4 (as defined in section 1848(o)(4) of the Social Secu5 rity Act, as added by section 4311(a)) should be 

6 made available to health care providers who are re7 ceiving minimal or no payment incentives or other 

8 funding under this Act, under title XVIII or XIX of 

9 such Act, or otherwise, for such purposes. 

10 (2) DETAILS OF STUDY.—Such study shall in11 clude an examination of— 

12 (A) the adoption rates of certified EHR 

13 technology (as so defined) by such health care 

14 providers; 

15 (B) the clinical utility of such technology 

16 by such health care providers; 

17 (C) whether the services furnished by such 

18 health care providers are appropriate for or 

19 would benefit from the use of such technology; 

20 (D) the extent to which such health care 

21 providers work in settings that might otherwise 

22 receive an incentive payment or other funding 

23 under this Act, title XVIII or XIX of the Social 

24 Security Act, or otherwise; 


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1 (E) the potential costs and the potential 

2 benefits of making payment incentives and 

3 other funding available to such health care pro4 viders; and 

5 (F) any other issues the Secretary deems 

6 to be appropriate. 

7 (b) REPORT.—Not later than June 30, 2010, the 

8 Secretary shall submit to Congress a report on the find9 ings and conclusions of the study conducted under sub10 section (a). 

11 SEC. 4206. STUDY ON AVAILABILITY OF OPEN SOURCE 

12 HEALTH INFORMATION TECHNOLOGY SYS13 TEMS. 

14 (a) IN GENERAL.— 

15 (1) STUDY.—The Secretary of Health and 

16 Human Services shall, in consultation with the 

17 Under Secretary for Health of the Veterans Health 

18 Administration, the Director of the Indian Health 

19 Service, the Secretary of Defense, the Director of 

20 the Agency for Healthcare Research and Quality, 

21 the Administrator of the Health Resources and Serv22 ices Administration, and the Chairman of the Fed23 eral Communications Commission, conduct a study 

24 on— 


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1 (A) the current availability of open source 

2 health information technology systems to Fed3 eral safety net providers (including small, rural 

4 providers); 

5 (B) the total cost of ownership of such sys6 tems in comparison to the cost of proprietary 

7 commercial products available; 

8 (C) the ability of such systems to respond 

9 to the needs of, and be applied to, various pop10 ulations (including children and disabled indi11 viduals); and 

12 (D) the capacity of such systems to facili13 tate interoperability. 

14 (2) CONSIDERATIONS.—In conducting the study 

15 under paragraph (1), the Secretary of Health and 

16 Human Services shall take into account the cir17 cumstances of smaller health care providers, health 

18 care providers located in rural or other medically un19 derserved areas, and safety net providers that deliver 

20 a significant level of health care to uninsured indi21 viduals, Medicaid beneficiaries, SCHIP beneficiaries, 

22 and other vulnerable individuals. 

23 (b) REPORT.—Not later than October 1, 2010, the 

24 Secretary of Health and Human Services shall submit to 

25 Congress a report on the findings and the conclusions of 


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1 the study conducted under subsection (a), together with 

2 recommendations for such legislation and administrative 

3 action as the Secretary determines appropriate. 

4 Subtitle B—Medicaid Funding 

5 SEC. 4211. MEDICAID PROVIDER EHR ADOPTION AND OPER6 ATION PAYMENTS; IMPLEMENTATION FUND7 ING. 

8 (a) IN GENERAL.—Section 1903 of the Social Secu9 rity Act (42 U.S.C. 1396b) is amended— 

10 (1) in subsection (a)(3)— 

11 (A) by striking ‘‘and’’ at the end of sub12 paragraph (D); 

13 (B) by striking ‘‘plus’’ at the end of sub14 paragraph (E) and inserting ‘‘and’’; and 

15 (C) by adding at the end the following new 

16 subparagraph: 

17 ‘‘(F)(i) 100 percent of so much of the 

18 sums expended during such quarter as are at19 tributable to payments for certified EHR tech20 nology (and support services including mainte21 nance and training that is for, or is necessary 

22 for the adoption and operation of, such tech23 nology) by Medicaid providers described in sub24 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 of the net allowable costs of Medicaid providers 

17 (as defined in paragraph (2)) for such technology (and 

18 support services). 

19 ‘‘(B) For purposes of subparagraph (A), the term 

20 ‘applicable percent’ means— 

21 ‘‘(i) in the case of a Medicaid provider de22 scribed in paragraph (2)(A), 85 percent; 

23 ‘‘(ii) in the case of a Medicaid provider de24 scribed in clause (i) or (ii) of paragraph (2)(B), 100 

25 percent; and 


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1 ‘‘(iii) in the case of a Medicaid provider de2 scribed in clause (iii) of paragraph (2)(B), a percent 

3 specified by the Secretary, but not less than 85 per4 cent. 

5 ‘‘(2) In this subsection and subsection (a)(3)(F), the 

6 term ‘Medicaid provider’ means— 

7 ‘‘(A) an eligible professional (as defined in 

8 paragraph (3)(B)) who is not hospital-based and has 

9 at least 30 percent of the professional’s patient vol10 ume (as estimated in accordance with standards es11 tablished by the Secretary) attributable to individ12 uals who are receiving medical assistance under this 

13 title; and 

14 ‘‘(B)(i) a children’s hospital, (ii) an acute-care 

15 hospital that is not described in clause (i) and that 

16 has at least 10 percent of the hospital’s patient vol17 ume (as estimated in accordance with standards es18 tablished by the Secretary) attributable to individ19 uals who are receiving medical assistance under this 

20 title, or (iii) a Federally-qualified health center or 

21 rural health clinic that has at least 30 percent of the 

22 center’s or clinic’s patient volume (as estimated in 

23 accordance with standards established by the Sec24 retary) attributable to individuals who are receiving 

25 medical assistance under this title. 


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1 An eligible professional shall not qualify as a Medicaid 

2 provider under this subsection unless the professional has 

3 waived, in a manner specified by the Secretary, any right 

4 to payment under section 1848(o) with respect to the 

5 adoption or support of certified EHR technology by the 

6 eligible professional. In applying clauses (ii) and (iii) of 

7 subparagraph (B), the standards established by the Sec8 retary for patient volume shall include individuals enrolled 

9 in a Medicaid managed care plan (under section 1903(m) 

10 or section 1932). 

11 ‘‘(3) In this subsection and subsection (a)(3)(F): 

12 ‘‘(A) The term ‘certified EHR technology’ 

13 means a qualified electronic health record (as de14 fined in 3000(13) of the Public Health Service Act) 

15 that is certified pursuant to section 3001(c)(5) of 

16 such Act as meeting standards adopted under sec17 tion 3004 of such Act that are applicable to the type 

18 of record involved (as determined by the Secretary, 

19 such as an ambulatory electronic health record for 

20 office-based physicians or an inpatient hospital elec21 tronic health record for hospitals). 

22 ‘‘(B) The term ‘eligible professional’ means a 

23 physician as defined in paragraphs (1) and (2) of 

24 section 1861(r), and includes a nurse mid-wife and 

25 a nurse practitioner. 


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1 ‘‘(C) The term ‘hospital-based’ means, with re2 spect to an eligible professional, a professional (such 

3 as a pathologist, anesthesiologist, or emergency phy4 sician) who furnishes substantially all of the individ5 ual’s professional services in a hospital setting 

6 (whether inpatient or outpatient) and through the 

7 use of the facilities and equipment, including quali8 fied electronic health records, of the hospital. 

9 ‘‘(4)(A) The term ‘allowable costs’ means, with re10 spect to certified EHR technology of a Medicaid provider, 

11 costs of such technology (and support services including 

12 maintenance and training that is for, or is necessary for 

13 the adoption and operation of, such technology) as deter14 mined by the Secretary to be reasonable. 

15 ‘‘(B) The term ‘net allowable costs’ means allowable 

16 costs reduced by any payment that is made to the Med17 icaid provider involved from any other source that is di18 rectly attributable to payment for certified EHR tech19 nology or services described in subparagraph (A). 

20 ‘‘(C) In no case shall— 

21 ‘‘(i) the aggregate allowable costs under this 

22 subsection (covering one or more years) with respect 

23 to a Medicaid provider described in paragraph 

24 (2)(A) for purchase and initial implementation of 

25 certified EHR technology (and services described in 


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1 subparagraph (A)) exceed $25,000 or include costs 

2 over a period of longer than 5 years; 

3 ‘‘(ii) for costs not described in clause (i) relat4 ing to the operation, maintenance, or use of certified 

5 EHR technology, the annual allowable costs under 

6 this subsection with respect to such a Medicaid pro7 vider for costs not described in clause (i) for any 

8 year exceed $10,000; 

9 ‘‘(iii) payment described in paragraph (1) for 

10 costs described in clause (ii) be made with respect 

11 to such a Medicaid provider over a period of more 

12 than 5 years; 

13 ‘‘(iv) the aggregate allowable costs under this 

14 subsection with respect to such a Medicaid provider 

15 for all costs exceed $75,000; or 

16 ‘‘(v) the allowable costs, whether for purchase 

17 and initial implementation, maintenance, or other18 wise, for a Medicaid provider described in paragraph 

19 (2)(B)(iii) exceed such aggregate or annual limita20 tion as the Secretary shall establish, based on an 

21 amount determined by the Secretary as being ade22 quate to adopt and maintain certified EHR tech23 nology, consistent with paragraph (6). 


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1 ‘‘(5) Payments described in paragraph (1) are not in 

2 accordance with this subsection unless the following re3 quirements are met: 

4 ‘‘(A) The State provides assurances satisfactory 

5 to the Secretary that amounts received under sub6 section (a)(3)(F) with respect to costs of a Medicaid 

7 provider are paid directly to such provider without 

8 any deduction or rebate. 

9 ‘‘(B) Such Medicaid provider is responsible for 

10 payment of the costs described in such paragraph 

11 that are not provided under this title. 

12 ‘‘(C) With respect to payments to such Med13 icaid provider for costs other than costs related to 

14 the initial adoption of certified EHR technology, the 

15 Medicaid provider demonstrates meaningful use of 

16 certified EHR technology through a means that is 

17 approved by the State and acceptable to the Sec18 retary, and that may be based upon the methodolo19 gies applied under section 1848(o) or 1886(n). In 

20 establishing such means, which may include the re21 porting of clinical quality measures to the State, the 

22 State shall ensure that populations with unique 

23 needs, such as children, are appropriately addressed. 

24 ‘‘(D) To the extent specified by the Secretary, 

25 the certified EHR technology is compatible with 


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1 State or Federal administrative management sys2 tems. 

3 ‘‘(6)(A) In no case shall the payments described in 

4 paragraph (1), with respect to a hospital, exceed in the 

5 aggregate the product of— 

6 ‘‘(i) the overall hospital EHR amount for the 

7 hospital computed under subparagraph (B); and 

8 ‘‘(ii) the Medicaid share for such hospital com9 puted under subparagraph (C). 

10 ‘‘(B) For purposes of this paragraph, the overall hos11 pital EHR amount, with respect to a hospital, is the sum 

12 of the applicable amounts specified in section 

13 1886(n)(2)(A) for such hospital for the first 4 payment 

14 years (as estimated by the Secretary) determined as if the 

15 Medicare share specified in clause (ii) of such section were 

16 1. The Secretary shall publish in the Federal Register the 

17 overall hospital EHR amount for each hospital eligible for 

18 payments under this subsection. In computing amounts 

19 under clause (ii) for payment years after the first payment 

20 year, the Secretary shall assume that in subsequent pay21 ment years discharges increase at the average annual rate 

22 of growth of the most recent three years for which dis23 charge data are available. 

24 ‘‘(C) The Medicaid share computed under this sub25 paragraph, for a hospital for a period specified by the SecVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00727 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 retary, shall be calculated in the same manner as the 

2 Medicare share under section 1886(n)(2)(D) for such a 

3 hospital and period, except that there shall be substituted 

4 for the numerator under clause (i) of such section the 

5 amount that is equal to the number of inpatient-bed-days 

6 (as established by the Secretary) which are attributable 

7 to individuals who are receiving medical assistance under 

8 this title and who are not described in section 

9 1886(n)(2)(D)(i). In computing inpatient-bed-days under 

10 the previous sentence, the Secretary shall take into ac11 count inpatient-bed-days attributable to inpatient-bed12 days that are paid for individuals enrolled in a Medicaid 

13 managed care plan (under section 1903(m) or section 

14 1932). 

15 ‘‘(7) With respect to health care providers other than 

16 hospitals, the Secretary shall establish and implement a 

17 detailed process to ensure coordination of the different 

18 programs for payment of such health care providers for 

19 adoption or use of health information technology (includ20 ing certified EHR technology), as well as payments for 

21 such health care providers provided under this title or title 

22 XVIII, to assure no duplication of funding. The Secretary 

23 shall promulgate regulations to carry out the preceding 

24 sentence. 


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1 ‘‘(8) In carrying out paragraph (5)(C), the State and 

2 Secretary shall seek, to the maximum extent practicable, 

3 to avoid duplicative requirements from Federal and State 

4 Governments to demonstrate meaningful use of certified 

5 EHR technology under this title and title XVIII. In doing 

6 so, the Secretary may deem satisfaction of requirements 

7 for such meaningful use for a payment year under title 

8 XVIII to be sufficient to qualify as meaningful use under 

9 this subsection. The Secretary may also specify the report10 ing periods under this subsection in order to carry out this 

11 paragraph. 

12 ‘‘(9) In order to be provided Federal financial partici13 pation under subsection (a)(3)(F)(ii), a State must dem14 onstrate to the satisfaction of the Secretary, that the 

15 State— 

16 ‘‘(A) is using the funds provided for the pur17 poses of administering payments under this sub18 section, including tracking of meaningful use by 

19 Medicaid providers; 

20 ‘‘(B) is conducting adequate oversight of the 

21 program under this subsection, including routine 

22 tracking of meaningful use attestations and report23 ing mechanisms; and 

24 ‘‘(C) is pursuing initiatives to encourage the 

25 adoption of certified EHR technology to promote 


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1 health care quality and the exchange of health care 

2 information under this title, subject to applicable 

3 laws and regulations governing such exchange. 

4 ‘‘(10) The Secretary shall periodically submit reports 

5 to the Committee on Energy and Commerce of the House 

6 of Representatives and the Committee on Finance of the 

7 Senate on status, progress, and oversight of payments 

8 under paragraph (1).’’. 

9 (b) IMPLEMENTATION FUNDING.—In addition to 

10 funds otherwise available, out of any funds in the Treas11 ury not otherwise appropriated, there are appropriated to 

12 the Secretary of Health and Human Services for the Cen13 ter for Medicare & Medicaid Services Program Manage14 ment Account, $40,000,000 for each of fiscal years 2009 

15 through 2015 and $20,000,000 for each succeeding fiscal 

16 year through fiscal year 2018, which shall be available for 

17 purposes of carrying out the provisions of (and the amend18 ments made by) this part. Amounts appropriated under 

19 this subsection for a fiscal year shall be available until ex20 pended. 

21 (c) HHS REPORT ON IMPLEMENTATION OF DE22 TAILED PROCESS TO ASSURE NO DUPLICATION OF FUND23 ING.—Not later than July 1, 2012, the Secretary of 

24 Health and Human Services shall submit to Congress a 

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1 tailed process under section 1903(t)(7) of the Social Secu2 rity Act, as added by subsection (a), together with rec3 ommendations for such legislation and administrative ac4 tion as the Secretary determines appropriate. 

5 TITLE V—STATE FISCAL RELIEF 

6 SEC. 5000. PURPOSES; TABLE OF CONTENTS. 

7 (a) PURPOSES.—The purposes of this title are as fol8 lows: 

9 (1) To provide fiscal relief to States in a period 

10 of economic downturn. 

11 (2) To protect and maintain State Medicaid 

12 programs during a period of economic downturn, in13 cluding by helping to avert cuts to provider payment 

14 rates and benefits or services, and to prevent con15 strictions of income eligibility requirements for such 

16 programs, but not to promote increases in such re17 quirements. 

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

19 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. 


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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. 


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1 (b) GENERAL 7.6 PERCENTAGE POINT INCREASE.— 

2 Subject to subsections (e), (f), and (g), for each State for 

3 calendar quarters during the recession adjustment period 

4 (as defined in subsection (h)(2)) , the FMAP (after the 

5 application of subsection (a)) shall be increased (without 

6 regard to any limitation otherwise specified in section 

7 1905(b) of the Social Security Act) by 7.6 percentage 

8 points. 

9 (c) ADDITIONAL RELIEF BASED ON INCREASE IN

10 UNEMPLOYMENT.— 

11 (1) IN GENERAL.—Subject to subsections (e), 

12 (f), and (g), if a State is a qualifying State under 

13 paragraph (2) for a calendar quarter occurring dur14 ing the recession adjustment period, the FMAP for 

15 the State shall be further increased by the number 

16 of percentage points equal to the product of the 

17 State percentage applicable for the State under sec18 tion 1905(b) of the Social Security Act (42 U.S.C. 

19 1396d(b)) after the application of subsections (a) 

20 and (b) and the applicable percent determined in 

21 paragraph (3) for the calendar quarter (or, if great22 er, for a previous such calendar quarter, subject to 

23 paragraph (4)) . 

24 (2) QUALIFYING CRITERIA.— 


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1 (A) IN GENERAL.—For purposes of para2 graph (1), a State qualifies for additional relief 

3 under this subsection for a calendar quarter oc4 curring during the recession adjustment period 

5 if the State is 1 of the 50 States or the District 

6 of Columbia and the State satisfies any of the 

7 following criteria for the quarter: 

8 (i) An increase of at least 1.5 percent9 age points, but less than 2.5 percentage 

10 points, in the average monthly unemploy11 ment rate, seasonally adjusted, for the 

12 State or District, as determined by com13 paring months in the most recent previous 

14 3-consecutive month period for which data 

15 are available for the State or District to 

16 the lowest average monthly unemployment 

17 rate, seasonally adjusted, for the State or 

18 District for any 3-consecutive-month pe19 riod preceding that period and beginning 

20 on or after January 1, 2006 (based on the 

21 most recently available monthly publica22 tions of the Bureau of Labor Statistics of 

23 the Department of Labor). 

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1 age points, in the average monthly unem2 ployment rate, seasonally adjusted, for the 

3 State or District (as so determined). 

4 (iii) An increase of at least 3.5 per5 centage points for the State or District, in 

6 the average monthly unemployment rate, 

7 seasonally adjusted, for the State or Dis8 trict (as so determined). 

9 (B) MAINTENANCE OF STATUS.—If a 

10 State qualifies for additional relief under this 

11 subsection for a calendar quarter, it shall be 

12 deemed to have qualified for such relief for each 

13 subsequent calendar quarter ending before July 

14 1, 2010. 

15 (3) APPLICABLE PERCENT.—For purposes of 

16 paragraph (1), the applicable percent is— 

17 (A) 2.5 percent, if the State satisfies the 

18 criteria described in paragraph (2)(A)(i) for the 

19 calendar quarter; 

20 (B) 4.5 percent if the State satisfies the 

21 criteria described in paragraph (2)(A)(ii) for 

22 the calendar quarter; and 

23 (C) 6.5 percent if the State satisfies the 

24 criteria described in paragraph (2)(A)(iii) for 

25 the calendar quarter. 


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1 (4) MAINTENANCE OF HIGHER PERCENTAGE

2 REDUCTION FOR PERIOD AFTER LOWER PERCENT3 AGE DEDUCTION WOULD OTHERWISE TAKE EF4 FECT.— 

5 (A) HOLD HARMLESS PERIOD.—If the per6 centage reduction applied to a State under 

7 paragraph (3) for any calendar quarter in the 

8 recession adjustment period beginning on or 

9 after January 1, 2009, and ending before July 

10 1, 2010, (determined without regard to this 

11 paragraph) is less than the percentage reduc12 tion applied for the preceding quarter (as so de13 termined), the higher percentage reduction shall 

14 continue in effect for each subsequent calendar 

15 quarter ending before July 1, 2010. 

16 (B) NOTICE OF DECREASE IN PERCENT17 AGE REDUCTION.—The Secretary shall notify a 

18 State at least 3 months prior to applying any 

19 lower percentage reduction to the State under 

20 paragraph (3). 

21 (d) INCREASE IN CAP ON MEDICAID PAYMENTS TO

22 TERRITORIES.—Subject to subsections (f) and (g), with 

23 respect to entire fiscal years occurring during the reces24 sion adjustment period and with respect to fiscal years 

25 only a portion of which occurs during such period (and 


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1 in proportion to the portion of the fiscal year that occurs 

2 during such period), the amounts otherwise determined for 

3 Puerto Rico, the Virgin Islands, Guam, the Northern Mar4 iana Islands, and American Samoa under subsections (f) 

5 and (g) of section 1108 of the Social Security Act (42 

6 6 U.S.C. 1308) shall each be increased by 15.2 percent. 

7 (e) SCOPE OF APPLICATION.—The increases in the 

8 FMAP for a State under this section shall apply for pur9 poses of title XIX of the Social Security Act and shall 

10 not apply with respect to— 

11 (1) disproportionate share hospital payments 

12 described in section 1923 of such Act (42 U.S.C. 

13 1396r–4); 

14 (2) payments under title IV of such Act (42 

15 U.S.C. 601 et seq.) (except that the increases under 

16 subsections (a) and (b) shall apply to payments 

17 under part E of title IV of such Act (42 U.S.C. 670 

18 et seq.)); 

19 (3) payments under title XXI of such Act (42 

20 U.S.C. 1397aa et seq.); 

21 (4) any payments under title XIX of such Act 

22 that are based on the enhanced FMAP described in 

23 section 2105(b) of such Act (42 U.S.C. 1397ee(b)); 

24 or 


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1 (5) any payments under title XIX of such Act 

2 that are attributable to expenditures for medical as3 sistance provided to individuals made eligible under 

4 a State plan under title XIX of the Social Security 

5 Act (including under any waiver under such title or 

6 under section 1115 of such Act (42 U.S.C. 1315)) 

7 because of income standards (expressed as a per8 centage of the poverty line) for eligibility for medical 

9 assistance that are higher than the income stand10 ards (as so expressed) for such eligibility as in effect 

11 on July 1, 2008. 

12 (f) STATE INELIGIBILITY.— 

13 (1) MAINTENANCE OF ELIGIBILITY REQUIRE14 MENTS.— 

15 (A) IN GENERAL.—Subject to subpara16 graphs (B) and (C), a State is not eligible for 

17 an increase in its FMAP under subsection (a), 

18 (b), or (c), or an increase in a cap amount 

19 under subsection (d), if eligibility standards, 

20 methodologies, or procedures under its State 

21 plan under title XIX of the Social Security Act 

22 (including any waiver under such title or under 

23 section 1115 of such Act (42 U.S.C. 1315)) are 

24 more restrictive than the eligibility standards, 

25 methodologies, or procedures, respectively, 


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1 under such plan (or waiver) as in effect on July 

2 1, 2008. 

3 (B) STATE REINSTATEMENT OF ELIGI4 BILITY PERMITTED.—Subject to subparagraph 

5 (C), a State that has restricted eligibility stand6 ards, methodologies, or procedures under its 

7 State plan under title XIX of the Social Secu8 rity Act (including any waiver under such title 

9 or under section 1115 of such Act (42 U.S.C. 

10 1315)) after July 1, 2008, is no longer ineli11 gible under subparagraph (A) beginning with 

12 the first calendar quarter in which the State 

13 has reinstated eligibility standards, methodolo14 gies, or procedures that are no more restrictive 

15 than the eligibility standards, methodologies, or 

16 procedures, respectively, under such plan (or 

17 waiver) as in effect on July 1, 2008. 

18 (C) SPECIAL RULES.—A State shall not be 

19 ineligible under subparagraph (A)— 

20 (i) for the calendar quarters before 

21 July 1, 2009, on the basis of a restriction 

22 that was applied after July 1, 2008, and 

23 before the date of the enactment of this 

24 Act, if the State prior to July 1, 2009, has 

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1 gies, or procedures that are no more re2 strictive than the eligibility standards, 

3 methodologies, or procedures, respectively, 

4 under such plan (or waiver) as in effect on 

5 July 1, 2008; or 

6 (ii) on the basis of a restriction that 

7 was directed to be made under State law 

8 as of July 1, 2008, and would have been 

9 in effect as of such date, but for a delay 

10 in the request for, and approval of, a waiv11 er under section 1115 of such Act with re12 spect to such restriction. 

13 (2) COMPLIANCE WITH PROMPT PAY REQUIRE14 MENTS.—No State shall be eligible for an increased 

15 FMAP rate as provided under this section for any 

16 claim submitted by a provider subject to the terms 

17 of section 1902(a)(37)(A) of the Social Security Act 

18 (42 U.S.C. 1396a(a)(37)(A)) during any period in 

19 which that State has failed to pay claims in accord20 ance with section 1902(a)(37)(A) of such Act. Each 

21 State shall report to the Secretary, no later than 30 

22 days following the 1st day of the month, its compli23 ance with the requirements of section 

24 1902(a)(37)(A) of the Social Security Act as they 


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1 pertain to claims made for covered services during 

2 the preceding month. 

3 (3) NO WAIVER AUTHORITY.—The Secretary 

4 may not waive the application of this subsection or 

5 subsection (g) under section 1115 of the Social Se6 curity Act or otherwise. 

7 (g) REQUIREMENTS.— 

8 (1) IN GENERAL.—A State may not deposit or 

9 credit the additional Federal funds paid to the State 

10 as a result of this section to any reserve or rainy day 

11 fund maintained by the State. 

12 (2) STATE REPORTS.—Each State that is paid 

13 additional Federal funds as a result of this section 

14 shall, not later than September 30, 2011, submit a 

15 report to the Secretary, in such form and such man16 ner as the Secretary shall determine, regarding how 

17 the additional Federal funds were expended. 

18 (3) ADDITIONAL REQUIREMENT FOR CERTAIN

19 STATES.—In the case of a State that requires polit20 ical subdivisions within the State to contribute to21 ward the non-Federal share of expenditures under 

22 the State Medicaid plan required under section 

23 1902(a)(2) of the Social Security Act (42 U.S.C. 

24 1396a(a)(2)), the State is not eligible for an in25 crease in its FMAP under subsection (b) or (c), or 


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1 an increase in a cap amount under subsection (d), 

2 if it requires that such political subdivisions pay for 

3 quarters during the recession adjustment period a 

4 greater percentage of the non-Federal share of such 

5 expenditures, or a greater percentage of the non6 Federal share of payments under section 1923, than 

7 the respective percentage that would have been re8 quired by the State under such plan on September 

9 30, 2008, prior to application 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) POVERTY LINE.—The term ‘‘poverty line’’ 

18 has the meaning given such term in section 673(2) 

19 of the Community Services Block Grant Act (42 

20 U.S.C. 9902(2)), including any revision required by 

21 such section. 

22 (3) RECESSION ADJUSTMENT PERIOD.—The 

23 term ‘‘recession adjustment period’’ means the pe24 riod beginning on October 1, 2008, and ending on 

25 December 31, 2010. 


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1 (4) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Health and Human Services. 

3 (5) STATE.—The term ‘‘State’’ has the mean4 ing given such term for purposes of title XIX of the 

5 Social Security Act (42 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. EXTENSION AND UPDATE OF SPECIAL RULE FOR 

10 INCREASE OF MEDICAID DSH ALLOTMENTS 

11 FOR LOW DSH STATES. 

12 Section 1923(f)(5) of the Social Security Act (42 

13 U.S.C. 1396r–4(f)(5)) is amended— 

14 (1) in subparagraph (B)— 

15 (A) in the subparagraph heading, by strik16 ing ‘‘YEAR 2004 AND SUBSEQUENT FISCAL

17 YEARS’’ and inserting ‘‘YEARS 2004 THROUGH

18 2008’’; 

19 (B) in clause (i), by inserting ‘‘and’’ after 

20 the semicolon; 

21 (C) in clause (ii), by striking ‘‘; and’’ and 

22 inserting a period; and 

23 (D) by striking clause (iii); and 

24 (2) by adding at the end the following subpara25 graph: 


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1 ‘‘(C) FOR FISCAL YEAR 2009 AND SUBSE2 QUENT FISCAL YEARS.—In the case of a State 

3 in which the total expenditures under the State 

4 plan (including Federal and State shares) for 

5 disproportionate share hospital adjustments 

6 under this section for fiscal year 2006, as re7 ported to the Administrator of the Centers for 

8 Medicare & Medicaid Services as of August 31, 

9 2009, is greater than 0 but less than 3 percent 

10 of the State’s total amount of expenditures 

11 under the State plan for medical assistance 

12 during the fiscal year, the DSH allotment for 

13 the State with respect to— 

14 ‘‘(i) fiscal year 2009, shall be the 

15 DSH allotment for the State for fiscal year 

16 2008 increased by 16 percent; 

17 ‘‘(ii) fiscal year 2010, shall be the 

18 DSH allotment for the State for fiscal year 

19 2009 increased by 16 percent; 

20 ‘‘(iii) fiscal year 2011 for the period 

ending on December 31, 2010, shall be 1 21 ⁄4

22 of the DSH allotment for the State for fis23 cal year 2010 increased by 16 percent; 

24 ‘‘(iv) fiscal year 2011 for the period 

25 beginning on January 1, 2011, and ending 


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on September 30, 2011, shall be 3 1 ⁄4 of the 

2 DSH allotment that would have been de3 termined under this subsection for the 

4 State for fiscal year 2011 if this subpara5 graph had not been enacted; 

6 ‘‘(v) fiscal year 2012, shall be the 

7 DSH allotment that would have been de8 termined under this subsection for the 

9 State for fiscal year 2012 if this subpara10 graph had not been enacted; and 

11 ‘‘(vi) fiscal year 2013 and any subse12 quent fiscal year, shall be the DSH allot13 ment for the State for the previous fiscal 

14 year subject to an increase for inflation as 

15 provided in paragraph (3)(A).’’. 

16 SEC. 5003. PAYMENT OF MEDICARE LIABILITY TO STATES 

17 AS A RESULT OF THE SPECIAL DISABILITY 

18 WORKLOAD PROJECT. 

19 (a) IN GENERAL.—The Secretary, in consultation 

20 with the Commissioner, shall work with each State to 

21 reach an agreement, not later than 3 months after the 

22 date of enactment of this Act, on the amount of a payment 

23 for the State related to the Medicare program liability as 

24 a result of the Special Disability Workload project, subject 

25 to the requirements of subsection (c). 


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1 (b) PAYMENTS.— 

2 (1) DEADLINE FOR MAKING PAYMENTS.—Not 

3 later than 30 days after reaching an agreement with 

4 a State under subsection (a), the Secretary shall pay 

5 the State, from the amounts appropriated under 

6 paragraph (2), the payment agreed to for the State. 

7 (2) APPROPRIATION.—Out of any money in the 

8 Treasury not otherwise appropriated, there is appro9 priated $3,000,000,000 for fiscal year 2009 for 

10 making payments to States under paragraph (1). 

11 (3) LIMITATIONS.—In no case may— 

12 (A) the aggregate amount of payments 

13 made by the Secretary to States under para14 graph (1) exceed $3,000,000,000; or 

15 (B) any payments be provided by the Sec16 retary under this section after the first day of 

17 the first month that begins 4 months after the 

18 date of enactment of this Act. 

19 (c) REQUIREMENTS.—The requirements of this sub20 section are the following: 

21 (1) FEDERAL DATA USED TO DETERMINE

22 AMOUNT OF PAYMENTS.—The amount of the pay23 ment under subsection (a) for each State is deter24 mined on the basis of the most recent Federal data 

25 available, including the use of proxies and reasonable 


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1 estimates as necessary, for determining expeditiously 

2 the amount of the payment that shall be made to 

3 each State that enters into an agreement under this 

4 section. The payment methodology shall consider the 

5 following factors: 

6 (A) The number of SDW cases found to 

7 have been eligible for benefits under the Medi8 care program and the month of the initial 

9 Medicare program eligibility for such cases. 

10 (B) The applicable non-Federal share of 

11 expenditures made by a State under the Med12 icaid program during the time period for SDW 

13 cases. 

14 (C) Such other factors as the Secretary 

15 and the Commissioner, in consultation with the 

16 States, determine appropriate. 

17 (2) CONDITIONS FOR PAYMENTS.—A State 

18 shall not receive a payment under this section unless 

19 the State— 

20 (A) waives the right to file a civil action 

21 (or to be a party to any action) in any Federal 

22 or State court in which the relief sought in23 cludes a payment from the United States to the 

24 State related to the Medicare liability under 

25 title XVIII of the Social Security Act (42 


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1 U.S.C. 1395 et seq.) as a result of the Special 

2 Disability Workload project; and 

3 (B) releases the United States from any 

4 further claims for reimbursement of State ex5 penditures as a result of the Special Disability 

6 Workload project. 

7 (3) NO INDIVIDUAL STATE CLAIMS DATA RE8 QUIRED.—No State shall be required to submit indi9 vidual claims evidencing payment under the Med10 icaid program as a condition for receiving a payment 

11 under this section. 

12 (4) INELIGIBLE STATES.—No State that is a 

13 party to a civil action in any Federal or State court 

14 in which the relief sought includes a payment from 

15 the United States to the State related to the Medi16 care liability under title XVIII of the Social Security 

17 Act (42 U.S.C. 1395 et seq.) as a result of the Spe18 cial Disability Workload project shall be eligible to 

19 receive a payment under this section while such an 

20 action is pending or if such an action is resolved in 

21 favor of the State. 

22 (d) DEFINITIONS.—In this section: 

23 (1) COMMISSIONER.—The term ‘‘Commis24 sioner’’ 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 

4 Act (42 U.S.C. 1396a et seq.) and includes medical 

5 assistance provided under any waiver of that pro6 gram approved under section 1115 or 1915 of such 

7 Act (42 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 

18 II of the Social Security Act (42 U.S.C. 401 et seq.) 

19 for a period during which such benefits were not 

20 provided to the individual and who was, during all 

21 or part of such period, enrolled in a State Medicaid 

22 program. 

23 (6) SPECIAL DISABILITY WORKLOAD

24 PROJECT.—The term ‘‘Special Disability Workload 

25 project’’ means the project described in the 2008 


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1 Annual Report of the Board of Trustees of the Fed2 eral Old-Age and Survivors Insurance and Federal 

3 Disability Insurance Trust Funds, H.R. Doc. No. 

4 110-104, 110th Cong. (2008). 

5 (7) STATE.—The term ‘‘State’’ means each of 

6 the 50 States and the District of Columbia. 

7 SEC. 5004. FUNDING FOR THE DEPARTMENT OF HEALTH 

8 AND HUMAN SERVICES OFFICE OF THE IN9 SPECTOR GENERAL. 

10 For purposes of ensuring the proper expenditure of 

11 Federal funds under title XIX of the Social Security Act 

12 (42 U.S.C. 1396 et seq.), there is appropriated to the Of13 fice of the Inspector General of the Department of Health 

14 and Human Services, out of any money in the Treasury 

15 not otherwise appropriated and without further appropria16 tion, $31,250,000 for the recession adjustment period (as 

17 defined in section 5001(h)(3)). Amounts appropriated 

18 under this section shall remain available for expenditure 

19 until September 30, 2012, and shall be in addition to any 

20 other amounts appropriated or made available to such Of21 fice for such purposes. 


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1 SEC. 5005. GAO STUDY AND REPORT REGARDING STATE 

2 NEEDS DURING PERIODS OF NATIONAL ECO3 NOMIC DOWNTURN. 

4 (a) IN GENERAL.—The Comptroller General of the 

5 United States shall study the period of national economic 

6 downturn in effect on the date of enactment of this Act, 

7 as well as previous periods of national economic downturn 

8 since 1974, for the purpose of developing recommenda9 tions for addressing the needs of States during such peri10 ods. As part of such analysis, the Comptroller General 

11 shall study the past and projected effects of temporary in12 creases in the Federal medical assistance percentage 

13 under the Medicaid program with respect to such periods. 

14 (b) REPORT.—Not later than April 1, 2011, the 

15 Comptroller General of the United States shall submit a 

16 report to the appropriate committees of Congress on the 

17 results of the study conducted under paragraph (1). Such 

18 report shall include the following: 

19 (1) Such recommendations as the Comptroller 

20 General determines appropriate for modifying the 

21 national economic downturn assistance formula for 

22 temporary adjustment of the Federal medical assist23 ance percentage under Medicaid (also referred to as 

24 a ‘‘countercyclical FMAP’’) described in GAO report 

25 number GAO–07–97 to improve the effectiveness of 

26 the application of such percentage in addressing the 


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1 needs of States during periods of national economic 

2 downturn, including recommendations for— 

3 (A) improvements to the factors that would 

4 begin and end the application of such percent5 age; 

6 (B) how the determination of the amount 

7 of such percentage could be adjusted to address 

8 State and regional economic variations during 

9 such periods; and 

10 (C) how the determination of the amount 

11 of such percentage could be adjusted to be more 

12 responsive to actual Medicaid costs incurred by 

13 States during such periods. 

14 (2) An analysis of the impact on States during 

15 such periods of— 

16 (A) declines in private health benefits cov17 erage; 

18 (B) declines in State revenues; and 

19 (C) caseload maintenance and growth 

20 under Medicaid, the State Children’s Health In21 surance Program, or any other publicly-funded 

22 programs to provide health benefits coverage 

23 for State residents. 

24 (3) Identification of, and recommendations for 

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1 cific economic indicators that the Comptroller Gen2 eral determines appropriate. 

3 TITLE VI—EXECUTIVE 

4 COMPENSATION 

5 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. 

6 SEC. 6001. DEFINITIONS. 

7 For purposes of this title, the following definitions 

8 shall apply: 

9 (1) SENIOR EXECUTIVE OFFICER.—The term 

10 ‘‘senior executive officer’’ means an individual who is 

11 1 of the top 5 most highly paid executives of a pub12 lic company, whose compensation is required to be 

13 disclosed pursuant to the Securities Exchange Act of 

14 1934, and any regulations issued thereunder, and 

15 non-public company counterparts. 

16 (2) GOLDEN PARACHUTE PAYMENT.—The term 

17 ‘‘golden parachute payment’’ means any payment to 

18 a senior executive officer for departure from a com19 pany for any reason, except for payments for serv20 ices performed or benefits accrued. 


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1 (3) TARP.—The term ‘‘TARP’’ means the 

2 Troubled Asset Relief Program established under 

3 the Emergency Economic Stabilization Act of 2008 

4 (Public Law 110–343, 12 U.S.C. 5201 et seq.). 

5 (4) TARP RECIPIENT.—The term ‘‘TARP re6 cipient’’ means any entity that has received or will 

7 receive financial assistance under the financial as8 sistance provided under the TARP. 

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

10 the Secretary of the Treasury. 

11 (6) COMMISSION.—The term ‘‘Commission’’ 

12 means the Securities and Exchange Commission. 

13 SEC. 6002. EXECUTIVE COMPENSATION AND CORPORATE 

14 GOVERNANCE. 

15 (a) IN GENERAL.—During the period in which any 

16 obligation arising from financial assistance provided under 

17 the TARP remains outstanding, each TARP recipient 

18 shall be subject to— 

19 (1) the standards established by the Secretary 

20 under this title; and 

21 (2) the provisions of section 162(m)(5) of the 

22 Internal Revenue Code of 1986, as applicable. 

23 (b) STANDARDS REQUIRED.—The Secretary shall re24 quire each TARP recipient to meet appropriate standards 

25 for executive compensation and corporate governance. 


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1 (c) SPECIFIC REQUIREMENTS.—The standards es2 tablished under subsection (b) shall include— 

3 (1) limits on compensation that exclude incen4 tives for senior executive officers of the TARP re5 cipient to take unnecessary and excessive risks that 

6 threaten the value of such recipient during the pe7 riod that any obligation arising from TARP assist8 ance is outstanding; 

9 (2) a provision for the recovery by such TARP 

10 recipient of any bonus, retention award, or incentive 

11 compensation paid to a senior executive officer and 

12 any of the next 20 most highly-compensated employ13 ees of the TARP recipient based on statements of 

14 earnings, revenues, gains, or other criteria that are 

15 later found to be materially inaccurate; 

16 (3) a prohibition on such TARP recipient mak17 ing any golden parachute payment to a senior execu18 tive officer or any of the next 5 most highly-com19 pensated employees of the TARP recipient during 

20 the period that any obligation arising from TARP 

21 assistance is outstanding; 

22 (4) a prohibition on such TARP recipient pay23 ing or accruing any bonus, retention award, or in24 centive compensation during the period that the obli25 gation is outstanding to at least the 25 most highlyVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00755 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 compensated employees, or such higher number as 

2 the Secretary may determine is in the public interest 

3 with respect to any TARP recipient; 

4 (5) a prohibition on any compensation plan that 

5 would encourage manipulation of the reported earn6 ings of such TARP recipient to enhance the com7 pensation of any of its employees; and 

8 (6) a requirement for the establishment of a 

9 Board Compensation Committee that meets the re10 quirements of section 6003. 

11 (d) CERTIFICATION OF COMPLIANCE.—The chief ex12 ecutive officer and chief financial officer (or the equiva13 lents thereof) of each TARP recipient shall provide a writ14 ten certification of compliance by the TARP recipient with 

15 the requirements of this title— 

16 (1) in the case of a TARP recipient, the securi17 ties of which are publicly traded, to the Securities 

18 and Exchange Commission, together with annual fil19 ings required under the securities laws; and 

20 (2) in the case of a TARP recipient that is not 

21 a publicly traded company, to the Secretary. 

22 SEC. 6003. BOARD COMPENSATION COMMITTEE. 

23 (a) ESTABLISHMENT OF BOARD REQUIRED.—Each 

24 TARP recipient shall establish a Board Compensation 


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1 Committee, comprised entirely of independent directors, 

2 for the purpose of reviewing employee compensation plans. 

3 (b) MEETINGS.—The Board Compensation Com4 mittee of each TARP recipient shall meet at least semi5 annually to discuss and evaluate employee compensation 

6 plans in light of an assessment of any risk posed to the 

7 TARP recipient from such plans. 

8 SEC. 6004. LIMITATION ON LUXURY EXPENDITURES. 

9 (a) POLICY REQUIRED.—The board of directors of 

10 any TARP recipient shall have in place a company-wide 

11 policy regarding excessive or luxury expenditures, as iden12 tified by the Secretary, which may include excessive ex13 penditures on— 

14 (1) entertainment or events; 

15 (2) office and facility renovations; 

16 (3) aviation or other transportation services; or 

17 (4) other activities or events that are not rea18 sonable expenditures for conferences, staff develop19 ment, reasonable performance incentives, or other 

20 similar measures conducted in the normal course of 

21 the business operations of the TARP recipient. 

22 SEC. 6005. SHAREHOLDER APPROVAL OF EXECUTIVE COM23 PENSATION. 

24 (a) ANNUAL SHAREHOLDER APPROVAL OF EXECU25 TIVE COMPENSATION.—Any proxy or consent or authorVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00757 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 ization for an annual or other meeting of the shareholders 

2 of any TARP recipient during the period in which any ob3 ligation arising from financial assistance provided under 

4 the TARP remains outstanding shall permit a separate 

5 shareholder vote to approve the compensation of execu6 tives, as disclosed pursuant to the compensation disclosure 

7 rules of the Commission (which disclosure shall include the 

8 compensation discussion and analysis, the compensation 

9 tables, and any related material). 

10 (b) NONBINDING VOTE.—A shareholder vote de11 scribed in subsection (a) shall not be binding on the board 

12 of directors of a TARP recipient, and may not be con13 strued as overruling a decision by such board, nor to cre14 ate or imply any additional fiduciary duty by such board, 

15 nor shall such vote be construed to restrict or limit the 

16 ability of shareholders to make proposals for inclusion in 

17 proxy materials related to executive compensation. 

18 (c) DEADLINE FOR RULEMAKING.—Not later than 1 

19 year after the date of enactment of this Act, the Commis20 sion shall issue any final rules and regulations required 

21 by this section. 

22 SEC. 6006. REVIEW OF PRIOR PAYMENTS TO EXECUTIVES. 

23 (a) IN GENERAL.—The Secretary shall review bo24 nuses, retention awards, and other compensation paid to 

25 employees of each entity receiving TARP assistance before 


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1 the date of enactment of this Act to determine whether 

2 any such payments were excessive, inconsistent with the 

3 purposes of this Act or the TARP, or otherwise contrary 

4 to the public interest. 

5 (b) NEGOTIATIONS FOR REIMBURSEMENT.—If the 

6 Secretary makes a determination described in subsection 

7 (a), the Secretary shall seek to negotiate with the TARP 

8 recipient and the subject employee for appropriate reim9 bursements to the Federal Government with respect to 

10 compensation or bonuses. 

11 Subtitle B—Limits on Executive 

12 Compensation 

13 SEC. 6011. SHORT TITLE. 

14 This subtitle may be cited as the ‘‘Cap Executive Of15 ficer Pay Act of 2009’’. 

16 SEC. 6012. LIMIT ON EXECUTIVE COMPENSATION. 

17 (a) IN GENERAL.—Notwithstanding any other provi18 sion of law or agreement to the contrary, no person who 

19 is an officer, director, executive, or other employee of a 

20 financial institution or other entity that receives or has 

21 received funds under the Troubled Asset Relief Program 

22 (or ‘‘TARP’’), established under section 101 of the Emer23 gency Economic Stabilization Act of 2008, may receive an24 nual compensation in excess of the amount of compensa25 tion paid to the President of the United States. 


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1 (b) DURATION.—The limitation in subsection (a) 

2 shall be a condition of the receipt of assistance under the 

3 TARP, and of any modification to such assistance that 

4 was received on or before the date of enactment of this 

5 Act, and shall remain in effect with respect to each finan6 cial institution or other entity that receives such assistance 

7 or modification for the duration of the assistance or obli8 gation provided under the TARP. 

9 SEC. 6013. RULEMAKING AUTHORITY. 

10 The Secretary shall expeditiously issue such rules as 

11 are necessary to carry out this subtitle, including with re12 spect to reimbursement of compensation amounts, as ap13 propriate. 

14 SEC. 6014. COMPENSATION. 

15 As used in this subtitle, the term ‘‘compensation’’ in16 cludes wages, salary, deferred compensation, retirement 

17 contributions, options, bonuses, property, and any other 

18 form of compensation or bonus that the Secretary of the 

19 Treasury determines is appropriate. 

20 Subtitle C—Excessive Bonuses 

21 SEC. 6021. TREATMENT OF EXCESSIVE BONUSES BY TARP 

22 RECIPIENTS. 

23 (a) IN GENERAL.—If, before the date of enactment 

24 of this Act, the preferred stock of a financial institution 

25 was purchased by the Government using funds provided 


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1 under the Troubled Asset Relief Program established pur2 suant to the Emergency Economic Stabilization Act of 

3 2008, then, notwithstanding any otherwise applicable re4 striction on the redeemability of such preferred stock, such 

5 financial institution shall redeem an amount of such pre6 ferred stock equal to the aggregate amount of all excessive 

7 bonuses paid or payable to all covered individuals. 

8 (b) TIMING.—Each financial institution described in 

9 subsection (a) shall comply with the requirements of sub10 section (a)— 

11 (1) not later than 120 days after the date of 

12 enactment of this Act, with respect to excessive bo13 nuses (or portions thereof) paid before the date of 

14 enactment of this Act; and 

15 (2) not later than the day before an excessive 

16 bonus (or portion thereof) is paid, with respect to 

17 any excessive bonus (or portion thereof) paid on or 

18 after the date of enactment of this Act. 

19 (c) DEFINITIONS.—As used in this section, the fol20 lowing definitions shall apply: 

21 (1) EXCESSIVE BONUS.— 

22 (A) IN GENERAL.—The term ‘‘excessive 

23 bonus’’ means the portion of the applicable 

24 bonus payments made to a covered individual in 

25 excess of $100,000. 


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1 (B) APPLICABLE BONUS PAYMENTS.— 

2 (i) IN GENERAL.—The term ‘‘applica3 ble bonus payment’’ means any bonus pay4 ment to a covered individual— 

5 (I) which is paid or payable by 

6 reason of services performed by such 

7 individual in a taxable year of the fi8 nancial institution (or any member of 

9 a controlled group described in sub10 paragraph (D)) ending in 2008, and 

11 (II) the amount of which was 

12 first communicated to such individual 

13 during the period beginning on Janu14 ary 1, 2008, and ending January 31, 

15 2009, or was based on a resolution of 

16 the board of directors of such institu17 tion that was adopted before the end 

18 of such taxable year. 

19 (ii) CERTAIN PAYMENTS AND CONDI20 TIONS DISREGARDED.—In determining 

21 whether a bonus payment is described in 

22 clause (i)(I)— 

23 (I) a bonus payment that relates 

24 to services performed in any taxable 

25 year before the taxable year described 


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1 in such clause and that is wholly or 

2 partially contingent on the perform3 ance of services in the taxable year so 

4 described shall be disregarded, and 

5 (II) any condition on a bonus 

6 payment for services performed in the 

7 taxable year so described that the em8 ployee perform services in taxable 

9 years after the taxable year so de10 scribed shall be disregarded. 

11 (C) BONUS PAYMENT.—The term ‘‘bonus 

12 payment’’ means any payment which— 

13 (i) is a discretionary payment to a 

14 covered individual by a financial institution 

15 (or any member of a controlled group de16 scribed in subparagraph (D)) for services 

17 rendered, 

18 (ii) is in addition to any amount pay19 able to such individual for services per20 formed by such individual at a regular 

21 hourly, daily, weekly, monthly, or similar 

22 periodic rate, and 

23 (iii) is paid or payable in cash or 

24 other property other than— 


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1 (I) stock in such institution or 

2 member, or 

3 (II) an interest in a troubled 

4 asset (within the meaning of the 

5 Emergency Economic Stabilization 

6 Act of 2008) held directly or indi7 rectly by such institution or member. 

8 Such term does not include payments to an em9 ployee as commissions, welfare and fringe bene10 fits, or expense reimbursements. 

11 (D) COVERED INDIVIDUAL.—The term 

12 ‘‘covered individual’’ means, with respect to any 

13 financial institution, any director or officer or 

14 other employee of such financial institution or 

15 of any member of a controlled group of corpora16 tions (within the meaning of section 52(a) of 

17 the Internal Revenue Code of 1986) that in18 cludes such financial institution. 

19 (2) FINANCIAL INSTITUTION.—The term ‘‘fi20 nancial institution’’ has the same meaning as in sec21 tion 3 of the Emergency Economic Stabilization Act 

22 of 2008 (12 U.S.C. 5252). 

23 (d) EXCISE TAX ON TARP COMPANIES THAT FAIL

24 TO REDEEM CERTAIN SECURITIES FROM UNITED

25 STATES.— 


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1 (1) IN GENERAL.—Chapter 46 of the Internal 

2 Revenue Code of 1986 (relating to excise tax on 

3 golden parachute payments) is amended by adding 

4 at the end the following new section: 

5 ‘‘SEC. 4999A. FAILURE TO REDEEM CERTAIN SECURITIES 

6 FROM UNITED STATES. 

7 ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 

8 a tax on any financial institution which— 

9 ‘‘(1) is required to redeem an amount of its 

10 preferred stock from the United States pursuant to 

11 section 1903(a) of the American Recovery and Rein12 vestment Tax Act of 2009, and 

13 ‘‘(2) fails to redeem all or any portion of such 

14 amount within the period prescribed for such re15 demption. 

16 ‘‘(b) AMOUNT OF TAX.—The amount of the tax im17 posed by subsection (a) shall be equal to 35 percent of 

18 the amount which the financial institution failed to redeem 

19 within the time prescribed under 1903(b) of the American 

20 Recovery and Reinvestment Tax Act of 2009. 

21 ‘‘(c) ADMINISTRATIVE PROVISIONS.— 

22 ‘‘(1) IN GENERAL.—For purposes of subtitle F, 

23 any tax imposed by this section shall be treated as 

24 a tax imposed by subtitle A for the taxable year in 

25 which a deduction is allowed for any excessive bonus 


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1 with respect to which the redemption described in 

2 subsection (a)(1) is required to be made. 

3 ‘‘(2) EXTENSION OF TIME.—The due date for 

4 payment of tax imposed by this section shall in no 

5 event be earlier than the 150th day following the 

6 date of the enactment of this section.’’. 

7 (2) CONFORMING AMENDMENTS.— 

8 (A) The heading for chapter 46 of such 

9 Code 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.’’. 

10 (B) The item relating to chapter 46 in the 

11 table of chapters for subtitle D of such Code is 

12 amended to read as follows: 

‘‘Chapter 46. Taxes on excessive remuneration.’’. 

13 (3) EFFECTIVE DATE.—The amendments made 

14 by this subsection shall apply to failures described in 

15 section 4999A(a)(2) of the Internal Revenue Code of 

16 1986 occurring after the date of the enactment of 

17 this Act. 

18 TITLE VII—FORECLOSURE 

19 PREVENTION 

TITLE VII—FORECLOSURE PREVENTION 

Sec. 7001. Mandatory loan modifications. 


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1 SEC. 7001. MANDATORY LOAN MODIFICATIONS. 

2 Section 109(a) of the Emergency Economic Stabiliza3 tion Act of 2008 (12 U.S.C. 5219) is amended— 

4 (1) by striking the last sentence; 

5 (2) by striking ‘‘To the extent’’ and inserting 

6 the following: 

7 ‘‘(1) IN GENERAL.—To the extent’’; and 

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

9 ‘‘(2) LOAN MODIFICATIONS REQUIRED.— 

10 ‘‘(A) IN GENERAL.—In addition to actions 

11 required under paragraph (1), the Secretary 

12 shall, not later than 15 days after the date of 

13 enactment of this paragraph, develop and im14 plement a plan to facilitate loan modifications 

15 to prevent avoidable mortgage loan foreclosures. 

16 ‘‘(B) FUNDING.—Of amounts made avail17 able under section 115 and not otherwise obli18 gated, not less than $50,000,000,000, shall be 

19 made available to the Secretary for purposes of 

20 carrying out the mortgage loan modification 

21 plan required to be developed and implemented 

22 under this paragraph. 

23 ‘‘(C) CRITERIA.—The loan modification 

24 plan required by this paragraph may incor25 porate the use of— 


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1 ‘‘(i) loan guarantees and credit en2 hancements; 

3 ‘‘(ii) the reduction of loan principal 

4 amounts and interest rates; 

5 ‘‘(iii) extension of mortgage loan 

6 terms; and 

7 ‘‘(iv) any other similar mechanisms or 

8 combinations thereof, as determined appro9 priate by the Secretary. 

10 ‘‘(D) DESIGNATION AUTHORITY.— 

11 ‘‘(i) FDIC.—The Secretary may des12 ignate the Corporation, on a reimbursable 

13 basis, to carry out the loan modification 

14 plan developed under this paragraph. 

15 ‘‘(ii) CONTRACTING AUTHORITY.—If 

16 designated under clause (i), the Corpora17 tion may use its contracting authority 

18 under section 9 of the Federal Deposit In19 surance Act. 

20 ‘‘(E) CONSULTATION REQUIRED.—In de21 veloping the loan modification plan under this 

22 paragraph, the Secretary shall consult with the 

23 Chairperson of the Board of Directors of the 

24 Corporation, the Board, and the Secretary of 

25 Housing and Urban Development. 


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1 ‘‘(F) REPORTS TO CONGRESS.—The Sec2 retary shall provide to the Committee on Bank3 ing, Housing, and Urban Affairs of the Senate 

4 and the Committee on Financial Services of the 

5 House of Representatives— 

6 ‘‘(i) upon development of the plan re7 quired by this paragraph, a report describ8 ing such plan; and 

9 ‘‘(ii) a monthly report on the number 

10 and types of loan modifications occurring 

11 during the reporting period, and the per12 formance of the loan modification plan 

13 overall.’’. 

14 TITLE VIII—FORECLOSURE 

15 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. 

16 SEC. 8001. SHORT TITLE. 

17 This title may be cited as the ‘‘Help Families Keep 

18 Their Homes Act of 2009’’. 

19 SEC. 8002. DEFINITIONS. 

20 For purposes of this title— 


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1 (1) the term ‘‘securitized mortgages’’ means 

2 residential mortgages that have been pooled by a 

3 securitization vehicle; 

4 (2) the term ‘‘securitization vehicle’’ means a 

5 trust, corporation, partnership, limited liability enti6 ty, special purpose entity, or other structure that— 

7 (A) is the issuer, or is created by the 

8 issuer, of mortgage pass-through certificates, 

9 participation certificates, mortgage-backed secu10 rities, or other similar securities backed by a 

11 pool of assets that includes residential mortgage 

12 loans; 

13 (B) holds all of the mortgage loans which 

14 are the basis for any vehicle described in sub15 paragraph (A); and 

16 (C) has not issued securities that are guar17 anteed by the Federal National Mortgage Asso18 ciation, the Federal Home Loan Mortgage Cor19 poration, or the Government National Mortgage 

20 Association; 

21 (3) the term ‘‘servicer’’ means a servicer of 

22 securitized mortgages; 

23 (4) the term ‘‘eligible servicer’’ means a servicer 

24 of pooled and securitized residential mortgages; 


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1 (5) the term ‘‘eligible mortgage’’ means a resi2 dential mortgage, the principal amount of which did 

3 not exceed the conforming loan size limit that was 

4 in existence at the time of origination for a com5 parable dwelling, as established by the Federal Na6 tional Mortgage Association; 

7 (6) the term ‘‘Secretary’’ means the Secretary 

8 of the Treasury; 

9 (7) the term ‘‘effective term of the Act’’ means 

10 the period beginning on the effective date of this 

11 title and ending on December 31, 2011; 

12 (8) the term ‘‘incentive fee’’ means the monthly 

13 payment to eligible servicers, as determined under 

14 section 7003; and 

15 (9) the term ‘‘prepayment fee’’ means the pay16 ment to eligible servicers, as determined under sec17 tion 7003(b). 

18 SEC. 8003. PAYMENTS TO ELIGIBLE SERVICERS AUTHOR19 IZED. 

20 (a) AUTHORITY.—The Secretary is authorized to 

21 make payments to eligible servicers, subject to the terms 

22 and conditions established under this title. 

23 (b) FEES PAID TO ELIGIBLE SERVICERS.— 

24 (1) IN GENERAL.—An eligible servicer may col25 lect reasonable incentive fee payments, as estabVerDate Nov 24 2008 02:51 Feb 08, 2009 Jkt 079200 PO 00000 Frm 00771 Fmt 6654 Sfmt 6201 E:\BILLS\H1.AS2 H1

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1 lished by the Secretary, not to exceed $2,000 per 

2 loan. 

3 (2) CONSULTATION.—The fees permitted under 

4 this section shall be subject to standards established 

5 by the Secretary, in consultation with the Secretary 

6 of Housing and Urban Development and the Chair7 man of the Board of Directors of the Federal De8 posit Insurance Corporation, which standards 

9 shall— 

10 (A) include an evaluation of whether an el11 igible mortgage is affordable for the remainder 

12 of its term; and 

13 (B) identify a reasonable fee to be paid to 

14 the servicer in the event that an eligible mort15 gage is prepaid. 

16 (3) FORM OF PAYMENT.—Fees permitted under 

17 this section may be paid in a lump sum or on a 

18 monthly basis. If paid on a monthly basis, the fee 

19 may only be remitted as long as the loan performs. 

20 (c) SAFE HARBOR.—Notwithstanding any other pro21 vision of law, and notwithstanding any investment con22 tract between a servicer and a securitization vehicle, a 

23 servicer— 

24 (1) owes any duty to maximize the net present 

25 value of the pooled mortgages in the securitization 


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1 vehicle to all investors and parties having a direct or 

2 indirect interest in such vehicle, and not to any indi3 vidual party or group of parties; and 

4 (2) shall be deemed to act in the best interests 

5 of all such investors and parties if the servicer 

6 agrees to or implements a modification, workout, or 

7 other loss mitigation plan for a residential mortgage 

8 or a class of residential mortgages that constitutes 

9 a part or all of the pooled mortgages in such 

10 securitization vehicle, if— 

11 (A) default on the payment of such mort12 gage has occurred or is reasonably foreseeable; 

13 (B) the property securing such mortgage is 

14 occupied by the mortgagor of such mortgage or 

15 the homeowner; and 

16 (C) the servicer reasonably and in good 

17 faith believes that the anticipated recovery on 

18 the principal outstanding obligation of the 

19 mortgage under the modification or workout 

20 plan exceeds, on a net present value basis, the 

21 anticipated recovery on the principal out22 standing obligation of the mortgage through 

23 foreclosure; 

24 (3) shall not be obligated to repurchase loans 

25 from, or otherwise make payments to, the 


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1 securitization vehicle on account of a modification, 

2 workout, or other loss mitigation plan that satisfies 

3 the conditions of paragraph (2); and 

4 (4) if it acts in a manner consistent with the 

5 duties set forth in paragraphs (1) and (2), shall not 

6 be liable for entering into a modification or workout 

7 plan to any person— 

8 (A) based on ownership by that person of 

9 a residential mortgage loan or any interest in a 

10 pool of residential mortgage loans, or in securi11 ties that distribute payments out of the prin12 cipal, interest, and other payments in loans in 

13 the pool; 

14 (B) who is obligated pursuant to a deriva15 tive instrument to make payments determined 

16 in reference to any loan or any interest referred 

17 to in subparagraph (A); or 

18 (C) that insures any loan or any interest 

19 referred to in subparagraph (A) under any pro20 vision of law or regulation of the United States 

21 or any State or political subdivision thereof. 

22 (d) REPORTING REQUIREMENTS.— 

23 (1) IN GENERAL.—Each servicer shall report 

24 regularly, not less frequently than monthly, to the 


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1 Secretary on the extent and scope of the loss mitiga2 tion activities of the mortgage owner. 

3 (2) CONTENT.—Each report required by this 

4 subsection shall include— 

5 (A) the number and percent of residential 

6 mortgage loans receiving loss mitigation that 

7 have become performing loans; 

8 (B) the number and percent of residential 

9 mortgage loans receiving loss mitigation that 

10 have proceeded to foreclosure; 

11 (C) the total number of foreclosures initi12 ated during the reporting period; 

13 (D) data on loss mitigation activities, in14 cluding the performance of mitigated loans, 

15 disagreggated for each form of loss mitigation, 

16 which forms may include— 

17 (i) a waiver of any late payment 

18 charge, penalty interest, or any other fees 

19 or charges, or any combination thereof; 

20 (ii) the establishment of a repayment 

21 plan under which the homeowner resumes 

22 regularly scheduled payments and pays ad23 ditional amounts at scheduled intervals to 

24 cure the delinquency; 


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1 (iii) forbearance under the loan that 

2 provides for a temporary reduction in or 

3 cessation of monthly payments, followed by 

4 a reamortization of the amounts due under 

5 the loan, including arrearage, and a new 

6 schedule of repayment amounts; 

7 (iv) waiver, modification, or variation 

8 of any material term of the loan, including 

9 short-term, long-term, or life-of-loan modi10 fications that change the interest rate, for11 give or forbear with respect to the payment 

12 of principal or interest, or extend the final 

13 maturity date of the loan; 

14 (v) short refinancing of the loan con15 sisting of acceptance of payment from or 

16 on behalf of the homeowner of an amount 

17 less than the amount alleged to be due and 

18 owing under the loan, including principal, 

19 interest, and fees, in full satisfaction of the 

20 obligation under such loan and as part of 

21 a refinance transaction in which the prop22 erty is intended to remain the principal 

23 residence of the homeowner; 


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1 (vi) acquisition of the property by the 

2 owner or servicer by deed in lieu of fore3 closure; 

4 (vii) short sale of the principal resi5 dence that is subject to the lien securing 

6 the loan; 

7 (viii) assumption of the obligation of 

8 the homeowner under the loan by a third 

9 party; 

10 (ix) cancellation or postponement of a 

11 foreclosure sale to allow the homeowner 

12 additional time to sell the property; or 

13 (x) any other loss mitigation activity 

14 not covered; and 

15 (E) such other information as the Sec16 retary determines to be relevant. 

17 (3) PUBLIC AVAILABILITY OF REPORTS.—After 

18 removing information that would compromise the 

19 privacy interests of mortgagors, the Secretary shall 

20 make public the reports required by this subsection 

21 and summary data. 

22 SEC. 8004. AUTHORIZATION OF APPROPRIATIONS. 

23 There are authorized to be appropriated to the Sec24 retary, such sums as may be necessary to carry out this 

25 title. 


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AMDT. NO. 570 

1 SEC. 8005. SUNSET OF AUTHORITY. 

2 The authority of the Secretary to provide assistance 

3 under this title shall terminate on December 31, 2011. 

Æ 


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