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[House Report 111-9]
[From the U.S. Government Publishing Office]

111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                      111-9

======================================================================
 
    PROVIDING FOR FURTHER CONSIDERATION OF THE BILL (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

                                _______
                                

  January 27, 2009.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

  Ms. Slaughter, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 92]

    The Committee on Rules, having had under consideration 
House Resolution 92, by a record vote of 9 to 2, report the 
same to the House with the recommendation that the resolution 
be adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for further consideration of H.R. 
1, the ``American Recovery and Reinvestment Act of 2009,'' 
under a structured rule. The resolution provides an additional 
one hour of general debate equally divided and controlled by 
the chairman and ranking minority member of the Committee on 
Appropriations.
    The resolution provides that the amendment printed in part 
A of this report shall be considered as adopted in the House 
and in the Committee of the Whole. The bill, as amended, shall 
be considered as the original bill for purpose of further 
amendment and shall be considered as read. The resolution 
waives all points of order against provisions of the bill, as 
amended. This waiver does not affect the point of order 
available under clause 9 of rule XXI (regarding earmark 
disclosure).
    The resolution provides that no further amendment shall be 
in order except those printed in part B of this report. Each 
further amendment may be offered only in the order printed, may 
be offered only by a Member designated, shall be considered as 
read, shall be debatable for the time specified equally divided 
and controlled by the proponent and an opponent, and shall not 
be subject to amendment or demand for division of the question. 
The resolution waives all points of order against such further 
amendments except those arising under clause 9 of rule XXI. The 
resolution provides one motion to recommit with or without 
instructions.
    The resolution provides that the chair of the Committee on 
Appropriations shall insert in the Congressional Record not 
later than February 4, 2009, such materials as he may deem 
explanatory of appropriations measures for fiscal year 2009. 
Finally, the resolution provides that the chair of the 
Committee on Ways and Means may file a supplemental report to 
accompany H.R. 598.

                         EXPLANATION OF WAIVERS

    Although the resolution waives all points of order against 
provisions in the bill, the Committee is not aware of any 
waivers. The waiver of all points of order is prophylactic.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 10

    Date: January 27, 2009.
    Measure: H.R. 1.
    Motion by: Mr. Dreier.
    Summary of motion: To report an open rule.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay; 
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; 
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea; 
Slaughter--Nay.

Rules Committee record vote No. 11

    Date: January 27, 2009.
    Measure: H.R. 1.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order en bloc and provide 
appropriate waivers for amendments to be separately debatable: 
(1) an amendment by Rep. Tiahrt, (KS), #64, which would strike 
the authority, and associated funding, in the bill that 
provides for new or significantly-expanded programs, including 
afterschool feeding programs for at-risk children, broadband 
provisions, innovative technology loan guarantee programs, 
small business provisions, and summer job programs. It would 
also suspend certain employment and income taxes, would repeal 
the final $350 billion of TARP funds, and would terminate TARP 
purchase authority upon enactment; (2) an amendment by Rep. 
Simpson (ID), #67, which would prohibit any provision in the 
bill that provides new or increased direct spending from taking 
effect until Congress enacts a bill to provide the 
corresponding offsets; and (3) an amendment by Rep. 
Frelinghuysen (NJ), and Rep. Latham (IA), #66, which would take 
funds legislatively withheld from obligation until not earlier 
than fiscal year 2010 and make them available for Army Corps of 
Engineers construction projects ($24.2 billion) and Department 
of Transportation highway infrastructure investment ($34 
billion) and capital improvement projects ($2 billion).
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay; 
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; 
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea; 
Slaughter--Nay.

Rules Committee record vote No. 12

    Date: January 27, 2009.
    Measure: H.R. 1.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order en bloc and provide 
appropriate waivers for amendments to be separately debatable: 
(1) an amendment by Rep. Barton (TX), #127, which would 
eliminate the requirement that, in order to receive energy 
efficiency funds, governors notify the Secretary of Energy that 
they would seek to change state utility ratemaking policy to 
ensure the utility's fixed costs are covered independent of 
sales; and (2) an amendment by Rep. Deal (GA), #151, which 
would require, starting in FY2010, States to cover at least 90 
percent of eligible individuals at or below 100 percent of the 
Federal poverty level before increasing eligibility to other 
individuals.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay; 
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; 
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea; 
Slaughter--Nay.

Rules Committee record vote No. 13

    Date: January 27, 2009.
    Measure: H.R. 1.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Hastings (FL), and Rep. Diaz-
Balart, Lincoln (FL), #169, which would allow the Secretary to 
grant a waiver of maintenance of effort requirements for the 
Department of Education's State Fiscal Stabilization Fund to 
States facing economic hardship due to natural disasters or a 
precipitous decline in the financial resource of the State.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay; 
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; 
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea; 
Slaughter--Nay.

Rules Committee record vote No. 14

    Date: January 27, 2009.
    Measure: H.R. 1.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order en bloc and provide 
appropriate waivers for amendments to be separately debatable: 
(1) an amendment by Rep. Buyer (IN), #44, which would provide 
that $10 million in grant funding is appropriated for entities 
that provide job skill training for homeless women veterans and 
homeless veterans with children; (2) an amendment by Rep. Buyer 
(IN), #45, which would increase the amount of subsistence 
allowance to $1,200 for veterans undergoing vocational and 
rehabilitation training; (3) an amendment by Rep. Buyer (IN), 
#46, which would appropriate $20 million for veterans' 
workforce investment programs under section 168 of the 
Workforce Investment Act; (4) an amendment by Rep. Buyer (IN), 
#47, which would appropriate $1 billion to guarantee small 
business loans for veterans; and (5) an amendment by Rep. 
McCotter (MI), #90, which would require any new infrastructure 
project created by funding provided in H.R. 1 to be named after 
a member of the United States Armed Forces who was killed in 
combat or an emergency response provider who was killed in the 
line of duty.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay; 
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; 
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea; 
Slaughter--Nay.

Rules Committee record vote No. 15

    Date: January 27, 2009.
    Measure: H.R. 1.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Heller (NV), #2, which would 
strike section 1301 (regarding waiver of requirement to repay 
first-time homebuyer credit), would extend homebuyer credit to 
end of 2009, and expand the credit to cover all purchases of 
primary residences.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay; 
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; 
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea; 
Slaughter--Nay.

Rules Committee record vote No. 16

    Date: January 27, 2009.
    Measure: H.R. 1.
    Motion by: Mr. Diaz-Balart.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Brown, Corinne (FL), and Rep. 
Mica (FL), #118, which would negate the need for local matching 
funds for airport improvement projects.
    Results: Defeated 3-9.
    Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay; 
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; 
Polis--Nay; Dreier--Yea; Diaz-Balart--Yea; Foxx--Yea; 
Slaughter--Nay.

Rules Committee record vote No. 17

    Date: January 27, 2009.
    Measure: H.R. 1.
    Motion by: Dr. Foxx.
    Summary of motion: To make in order en bloc and provide 
appropriate waivers for amendments to be separately debatable; 
(1) an amendment by Rep. Blunt (MO), and Rep. Rogers, Mike 
(MI), #34, which would amend provisions in the bill regulating 
the receipt of payment for making health care communications to 
ensure nothing in the bill will prevent a pharmacist from 
collecting and sharing information with their patients to 
reduce errors and improve their safety and stipulates that any 
money received for these activities is reasonable and cost 
based; (2) an amendment by Rep. Stearns (FL), #145, which would 
allow unemployed workers who are eligible for COBRA to receive 
premium assistance from the federal government, require the 
federal government to pay 65 percent of the worker's COBRA 
premium, and would prohibit anyone who made over $1 million in 
2008 from receiving COBRA premium assistance under this new 
COBRA premium assistance program; and (3) an amendment by Rep. 
Murphy, Tim (PA), #92, which would require that Health 
Information Technology purchased with funds made available by 
this Act be engineered and manufactured in the United States.
    Results: Defeated 2-9.
    Vote by Members: McGovern--nay; Hastings--Nay; Matsui--Nay; 
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; 
Polis--Nay; Dreier--Yea; Foxx--Yea Slaughter--Nay.

Rules Committee record vote No. 18

    Date: January 27, 2009.
    Measure: H.R. 1.
    Motion by: Dr. Foxx.
    Summary of motion: To make in order en bloc and provide 
appropriate waivers for amendments to be separately debatable: 
(1) an amendment by Rep. Flake (AZ), #128, which would indicate 
that Members shall not influence discretionary funding by 
agencies or state and local officials on behalf of campaign 
contributors; (2) an amendment by Rep. Flake (AZ), #129, which 
would prohibit funds from being used for any duck pond, museum, 
skate park, equestrian center, dog park, ski hill, historic 
home, ice rink, splash playground, or speaker system; and (3) 
an amendment by Rep. Flake (AZ), #130, which would strike 
funding in the bill for the National Foundation on the Arts and 
the Humanities and the National Endowment for the Arts.
    Results: Defeated 2-9.
    Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay; 
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; 
Polis--Nay; Dreier--Yea; Foxx--Yea; Slaughter--Nay.

Rules Committee record vote No. 19

    Date: January 27, 2009.
    Measure: H.R. 1.
    Motion by: Dr. Foxx.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment in the nature of a substitute by Rep. 
Garrett (NJ), #18, which would repeal the Alternative Minimum 
Tax on individuals, reduce individual income taxes, reduce 
taxes on capital assets, make rescissions in non-defense 
discretionary spending, and includes other provisions relating 
to business, individuals and higher education.
    Results: Defeated 2-9.
    Vote by Members: McGovern--Nay; Hastings--Nay; Matsui--Nay; 
Cardoza--Nay; Arcuri--Nay; Perlmutter--Nay; Pingree--Nay; 
Polis--Nay; Dreier--Yea; Foxx--Yea; Slaughter--Nay.

Rules Committee record vote No. 20

    Date: January 27, 2009.
    Measure: H.R. 1.
    Motion by: Mr. McGovern.
    Summary of Motion: To report the rule.
    Results: Adopted 9-2.
    Vote by Members: McGovern--Yea; Hastings--Yea; Matsui--Yea; 
Cardoza--Yea; Arcuri--Yea; Perlmutter--Yea; Pingree--Yea; 
Polis--Yea; Dreier--Nay; Foxx--Nay; Slaughter--Yea.

       SUMMARY OF AMENDMENT IN PART A TO BE CONSIDERED AS ADOPTED

    The amendment (1) requires that not later than 45 days 
after the date of enactment, funds provided to any State or 
agency thereof, the Governor of the State, or the State 
legislature by means of a statement submitted by its 
leadership, shall certify that the State will request and use 
funds provided by this Act. Funding to the State will be for 
public and private entities within the State either by formula 
or at the State's discretion; (2) waives the local matching 
requirements and the salary caps for the COPS hiring program in 
fiscal years 2009 and 2010; (3) designates $15 million for the 
Historic Preservation Fund within the National Park Service for 
the renovation and preservation of buildings on Historically 
Black Colleges and Universities campuses and waives the 
institutional match for projects under this provision; (4) 
strikes funding for the National Mall Revitalization Fund; and 
(5) strikes section 5004 regarding family planning.

           SUMMARY OF AMENDMENT IN PART B TO BE MADE IN ORDER

    1. Oberstar (MN): Would amend the aviation, highway, rail, 
and transit priority consideration and ``use-it-or-lose-it'' 
provisions to require that 50 percent of the funds be obligated 
within 90 days. (10 minutes)
    2. Markey (MA): Would require that the Secretary require, 
as a condition of receiving funding under Title XIII of the 
Energy Independence and Security Act of 2007, that the 
demonstration projects utilize Internet-based or other open 
protocols and standards if available and appropriate, and would 
require that grants recipients utilize Internet-based or other 
open protocols and standards. (10 minutes)
    3. Shuster (PA): Would clarify that federal funds received 
by States under the bill for highway maintenance shall not be 
used to replace existing funds in place for transportation 
projects. (10 minutes)
    4. Nadler (NY)/DeFazio (OR)/Lipinski (IL)/McMahon (NY)/
Ellison (MN): Would increase transit capital funding by $3 
billion. (10 minutes)
    5. Neugebauer (TX): Would strike the appropriations 
provisions from the bill. (10 minutes)
    6. Waters (CA): Would provide that job training funds may 
be used for broadband deployment and related activities 
provided in the bill. (10 minutes)
    7. Flake (AZ): Would strike funding for Amtrak. (10 
minutes)
    8. Kissell (NC): Would expand the Berry Amendment Extension 
Act to include DHS to require the government to purchase 
uniforms for more than one hundred thousand uniformed employees 
from U.S. textile and apparel manufacturers. (10 minutes)
    9. Platts (PA)/Van Hollen (MD): Would insert the text of 
the Whistleblower Protection Enhancement Act (H.R. 985 in the 
110th Congress) regarding protections for federal employees who 
report waste, fraud, and abuse. (10 minutes)
    10. Teague (NM): Would require that the Recovery.gov 
website contain links and other information on how to access 
job information created at or by entities receiving funding 
under the bill; including links to local employment agencies, 
state, local, and other public agencies receiving recovery 
funds, and private firms contracted to perform work funded by 
the bill. (10 minutes)
    11. Camp (MI)/Cantor (VA): Amendment in the Nature of a 
Substitute. Would strike everything after enacting clause and 
adds income tax rate deductions for bottom two income tax 
brackets, alternative minimum tax relief, small business 
deduction, bonus depreciation, small business expensing, 
expanded carryback of net operating losses, improved home buyer 
credit, unemployment benefit tax exemption, health insurance 
premium deduction, repeal of 3 percent withholding requirement 
for government contractors, extension of unemployment benefits, 
and a Sense of Congress against tax increases to offset 
outlays. (60 minutes)

         PART A--TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED

  Page 15, after line 7, insert the following:

SEC. 1115. ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF APPROPRIATE 
                    USE OF FUNDS.

  (a) Certification by Governor.--Not later than 45 days after 
the date of enactment of this Act, for funds provided to any 
State or agency thereof, the Governor of the State shall 
certify that the State will request and use funds provided by 
this Act.
  (b) Acceptance by State Legislature.--If funds provided to 
any State in any division of this Act are not accepted for use 
by the Governor, then acceptance by the State legislature, by 
means of the adoption of a concurrent resolution, shall be 
sufficient to provide funding to such State.
  (c) Distribution.--After the adoption of a State 
legislature's concurrent resolution, funding to the State will 
be for distribution to local governments, councils of 
government, public entities, and public-private entities within 
the State either by formula or at the State's discretion.
  Page 53, after line 15, insert the following:

                   GENERAL PROVISIONS, THIS SUBTITLE

SEC. 3201. WAIVER OF MATCHING REQUIREMENT AND SALARY LIMIT UNDER COPS 
                    PROGRAM.

  Sections 1701(g) and 1704(c) of the Omnibus Crime Control and 
Safe Street Act of 1968 (42 U.S.C. 3796dd(g) and 3796dd-3(c)) 
shall not apply with respect to funds appropriated in this or 
any other Act making appropriations for fiscal year 2009 or 
2010 for Community Oriented Policing Services authorized under 
part Q of such Act of 1968.
  Page 111, after line 7, insert the following:

SEC. 7005. WAIVER OF MATCHING REQUIREMENT UNDER SAFER PROGRAM.

  Subparagraph (E) of section 34(a)(1) of the Federal Fire 
Prevention and Control Act of 1974 (15 U.S.C. 2229a(a)(1)(E)) 
shall not apply with respect to funds appropriated in this or 
any other Act making appropriations for fiscal year 2009 or 
2010 for grants under such section 34.
  Page 113, line 1, after ``System'' insert the following:
: Provided further, That $15,000,000 of these funds shall be 
transferred to the ``Historic Preservation Fund'' for historic 
preservation projects at historically black colleges and 
universities as authorized by the Historic Preservation Fund 
Act of 1996 and the Omnibus Parks and Public Lands Act of 1996, 
except that any matching requirements otherwise required for 
such projects are waived
  Page 113, strike lines 5 through 14.
  Page 603, beginning on line 18, strike section 5004 (and 
redesignate the subsequent sections, and conform the table of 
contents in section 5000, accordingly).
  Page 615, line 6, strike ``and section 5004''.
  Page 615, line 9, strike ``(ff)'' and insert ``(ee)''.
  Page 620, line 1, strike ``5005(b)'' and insert ``5004(b)''.

     PART B--TEXT OF AMENDMENTS TO BE MADE IN ORDER UNDER THE RULE

1. An Amendment To Be Offered by Representative Oberstar of Minnesota, 
               or His Designee, Debatable for 10 Minutes

  Page 207, line 21, strike ``120 days'' and insert ``90 
days''.
  Page 209, line 7, strike ``120 days'' and insert ``90 days''.
  Page 210, line 9, strike ``180 days'' and insert ``90 days''.
  Page 210, lines 20 and 21, strike ``150 days'' and insert 
``75 days''.
  Page 211, line 25, strike ``180 days'' and insert ``90 
days''.
  Page 214, line 2, strike ``180 days'' and insert ``90 days''.
  Page 215, line 7, strike ``180 days'' and insert ``90 days''.
  Page 216, line 8, strike ``120 days'' and insert ``90 days''.
  Page 216, line 13, strike ``120 days'' and insert ``90 
days''.
                              ----------                              

       2. An Amendment To Be Offered by Representative Markey of 
        Massachusetts, or His Designee, Debatable for 10 Minutes

  Page 637, lines 10 through 15, amend subparagraph (F) to read 
as follows:
                  ``(F) Open protocols and standards.--The 
                Secretary shall require as a condition of 
                receiving funding under this subsection that 
                demonstration projects utilize Internet-based 
                or other open protocols and standards if 
                available and appropriate.''.
  Page 638, lines 12 through 14, amend paragraph (2) to read as 
follows:
          ``(2) require as a condition of receiving a grant 
        under this section that grant recipients utilize 
        Internet-based or other open protocols and standards if 
        available and appropriate;
                              ----------                              

      3. An Amendment To Be Offered by Representative Shuster of 
        Pennsylvania, or His Designee, Debatable for 10 Minutes

    Page 230, beginning on line 22, strike ``the date of 
enactment of this Act'' and insert ``October 1, 2008''.
    In section 12001 of division A of the bill--
    (1) redesignate subsections (b) and (c) as subsections (c) 
and (d), respectively, and
    (2) insert after subsection (a) the following:
    (b) Failure to Maintain Effort.--If a Governor is unable to 
certify that Federal funds will not supplant non-Federal funds 
pursuant to subsection (a), then the Federal funds apportioned 
to that State under this Act that will supplant non-Federal 
funds will be recaptured by the appropriate Federal agency and 
redistributed to States or agencies that can spend the Federal 
funds without supplanting non-Federal funds.
                              ----------                              

4. An Amendment To Be Offered by Representative Nadler of New York, or 
                 His Designee, Debatable for 10 Minutes

    Page 213, line 4, after the first dollar amount, insert 
``(increased by $1,500,000,000)''.
    Page 213, line 4, after the second dollar amount, insert 
``(increased by $1,350,000,000)''.
    Page 213, line 10, after the first dollar amount, insert 
``(increased by $150,000,000)''.
    Page 216, line 2, after the dollar amount, insert 
``(increased by $1,500,000,000)''.
                              ----------                              

5. An Amendment To Be Offered by Representative Neugebauer of Texas, or 
                 His Designee, Debatable for 10 Minutes

  Strike division A (and redesignate remaining provisions 
accordingly).
                              ----------                              

 6. An Amendment To Be Offered by Representative Waters of California, 
               or His Designee, Debatable for 10 Minutes

  Page 125, line 6, insert ``(including projects funded under 
section 6002 of division B of this Act)'' after ``sectors''.
                              ----------                              

 7. An Amendment To Be Offered by Representative Flake of Arizona, or 
                 His Designee, Debatable for 10 Minutes

  Page 212, strike lines 9 through 24.
                              ----------                              

   8. An Amendment To Be Offered by Representative Kissell of North 
          Carolina, or His Designee, Debatable for 10 Minutes

  Page 111, after line 7 insert the following new section:

SEC. 7005. PROCUREMENT FOR DEPARTMENT OF HOMELAND SECURITY.

  (a) Requirement.--Except as provided in subsections (c) 
through (e), funds appropriated or otherwise available to the 
Department of Homeland Security may not be used for the 
procurement of an item described in subsection (b) if the item 
is not grown, reprocessed, reused, or produced in the United 
States.
  (b) Covered Items.--An item referred to in subsection (a) is 
any of the following, if the item is directly related to the 
national security interests of the United States:
          (1) An article or item of--
                  (A) clothing and the materials and components 
                thereof, other than sensors, electronics, or 
                other items added to, and not normally 
                associated with, clothing (and the materials 
                and components thereof);
                  (B) tents, tarpaulins, or covers;
                  (C) cotton and other natural fiber products, 
                woven silk or woven silk blends, spun silk yarn 
                for cartridge cloth, synthetic fabric or coated 
                synthetic fabric (including all textile fibers 
                and yarns that are for use in such 
                fabrics),canvas products, or wool (whether in 
                the form of fiber or yarn or contained in 
                fabrics, materials, or manufactured articles); 
                or
                  (D) any item of individual equipment 
                manufactured from or containing such fibers, 
                yarns, fabrics, or materials.
  (c) Availability Exception.--Subsection (a) does not apply to 
the extent that the Secretary of Homeland Security determines 
that satisfactory quality and sufficient quantity of any such 
article or item described in subsection (b)(1) grown, 
reprocessed, reused, or produced in the United States cannot be 
procured as and when needed.
  (d) Exception for Certain Procurements Outside the United 
States.--Subsection (a) does not apply to the following:
          (1) Procurements by vessels in foreign waters.
          (2) Emergency procurements.
  (e) Exception for Small Purchases.--Subsection (a) does not 
apply to purchases for amounts not greater than the simplified 
acquisition threshold referred to in section 2304(g) of title 
10, United States Code.
  (f) Applicability to Contracts and Subcontracts for 
Procurement of Commercial Items.--This section is applicable to 
contracts and subcontracts for the procurement of commercial 
items notwithstanding section 34 of the Office of Federal 
Procurement Policy Act (41 U.S.C. 430).
  (g) Geographic Coverage.--In this section, the term ``United 
States'' includes the possessions of the United States.
  (h) Notification Required Within 7 Days After Contract Award 
if Certain Exceptions Applied.--In the case of any contract for 
the procurement of an item described in subsection (b)(1), if 
the Secretary of Homeland Security applies an exception set 
forth in subsection (c) with respect to that contract, the 
Secretary shall, not later than 7 days after the award of the 
contract, post a notification that the exception has been 
applied on the Internet site maintained by the General Services 
Administration know as FedBizOps.gov (or any successor site).
  (i) Training During Fiscal Year 2008.--
          (1) In general.--The Secretary of Homeland Security 
        shall ensure that each member of the acquisition 
        workforce in the Department of Homeland Security who 
        participates personally and substantially in the 
        acquisition of textiles on a regular basis receives 
        training during fiscal year 2009 on the requirements of 
        this section and the regulations implementing this 
        section.
          (2) Inclusion of information in new training 
        programs.--The Secretary shall ensure that any training 
        program for the acquisition work force developed or 
        implemented after the date of the enactment of this Act 
        includes comprehensive information on the requirements 
        described in paragraph (1).
  (j) Consistency With International Agreements.--
          (1) In general.--No provision of this section shall 
        apply to the extent the Secretary of Homeland Security, 
        in consultation with the United States Trade 
        Representative, determines that it is in inconsistent 
        with United States obligations under an international 
        agreement.
          (2) Report.--The Secretary of Homeland Security shall 
        submit a report each year to Congress containing, with 
        respect to the year covered by the report--
                  (A) a list of each provision of this section 
                that did not apply during that year pursuant to 
                a determination by the Secretary under 
                paragraph (1); and
                  (B) a list of each contract awarded by the 
                Department of Homeland Security during that 
                year without regard to a provision in this 
                section because that provision was made 
                inapplicable pursuant to such a determination.
  (k) Effective Date.--This section applies with respect to 
contracts entered into by the Department of Homeland Security 
after the date of the enactment of this Act.
                              ----------                              

9. An Amendment To Be Offered by Representative Platts of Pennsylvania, 
               or His Designee, Debatable for 10 Minutes

  Page 35, after line 5, insert the following:

       PART 4--FURTHER ACCOUNTABILITY AND TRANSPARENCY PROVISIONS

SEC. 1261. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This part may be cited as the 
``Whistleblower Protection Enhancement Act of 2009''.
  (b) Table of Contents.--The table of contents for this part 
is as follows:

       Part 4--Further Accountability and Transparency Provisions

Sec. 1261. Short title; table of contents.
Sec. 1262. Clarification of disclosures covered.
Sec. 1263. Definitional amendments.
Sec. 1264. Rebuttable presumption.
Sec. 1265. Nondisclosure policies, forms, and agreements.
Sec. 1266. Exclusion of agencies by the President.
Sec. 1267. Disciplinary action.
Sec. 1268. Government Accountability Office study on revocation of 
          security clearances.
Sec. 1269. Alternative recourse.
Sec. 1270. National security whistleblower rights.
Sec. 1271. Enhancement of contractor employee whistleblower protections.
Sec. 1272. Prohibited personnel practices affecting the Transportation 
          Security Administration.
Sec. 1273. Clarification of whistleblower rights relating to scientific 
          and other research.
Sec. 1274. Effective date.

SEC. 1262. CLARIFICATION OF DISCLOSURES COVERED.

  (a) In General.--Section 2302(b)(8) of title 5, United States 
Code, is amended--
          (1) in subparagraph (A)--
                  (A) by striking ``which the employee or 
                applicant reasonably believes evidences'' and 
                inserting ``, without restriction as to time, 
                place, form, motive, context, forum, or prior 
                disclosure made to any person by an employee or 
                applicant, including a disclosure made in the 
                ordinary course of an employee's duties, that 
                the employee or applicant reasonably believes 
                is evidence of''; and
                  (B) in clause (i), by striking ``a 
                violation'' and inserting ``any violation''; 
                and
          (2) in subparagraph (B)--
                  (A) by striking ``which the employee or 
                applicant reasonably believes evidences'' and 
                inserting ``, without restriction as to time, 
                place, form, motive, context, forum, or prior 
                disclosure made to any person by an employee or 
                applicant, including a disclosure made in the 
                ordinary course of an employee's duties, of 
                information that the employee or applicant 
                reasonably believes is evidence of''; and
                  (B) in clause (i), by striking ``a 
                violation'' and inserting ``any violation 
                (other than a violation of this section)''.
  (b) Prohibited Personnel Practices Under Section 
2302(b)(9).--Title 5, United States Code, is amended in 
subsections (a)(3), (b)(4)(A), and (b)(4)(B)(i) of section 1214 
and in subsections (a) and (e)(1) of section 1221 by inserting 
``or 2302(b)(9)(B)-(D)'' after ``section 2302(b)(8)'' each 
place it appears.

SEC. 1263. DEFINITIONAL AMENDMENTS.

  (a) Disclosure.--Section 2302(a)(2) of title 5, United States 
Code, is amended--
          (1) in subparagraph (B)(ii), by striking ``and'' at 
        the end;
          (2) in subparagraph (C)(iii), by striking the period 
        at the end and inserting ``; and''; and
          (3) by adding at the end the following:
          ``(D) `disclosure' means a formal or informal 
        communication, but does not include a communication 
        concerning policy decisions that lawfully exercise 
        discretionary authority unless the employee or 
        applicant providing the disclosure reasonably believes 
        that the disclosure evidences--
                  ``(i) any violation of any law, rule, or 
                regulation; or
                  ``(ii) gross mismanagement, a gross waste of 
                funds, an abuse of authority, or a substantial 
                and specific danger to public health or 
                safety.''.
  (b) Clear and Convincing Evidence.--Sections 
1214(b)(4)(B)(ii) and 1221(e)(2) of title 5, United States 
Code, are amended by adding at the end the following: ``For 
purposes of the preceding sentence, `clear and convincing 
evidence' means evidence indicating that the matter to be 
proved is highly probable or reasonably certain.''.

SEC. 1264. REBUTTABLE PRESUMPTION.

  Section 2302(b) of title 5, United States Code, is amended by 
adding at the end the following: ``For purposes of paragraph 
(8), any presumption relating to the performance of a duty by 
an employee who has authority to take, direct others to take, 
recommend, or approve any personnel action may be rebutted by 
substantial evidence. For purposes of paragraph (8), a 
determination as to whether an employee or applicant reasonably 
believes that such employee or applicant has disclosed 
information that evidences any violation of law, rule, 
regulation, gross mismanagement, a gross waste of funds, an 
abuse of authority, or a substantial and specific danger to 
public health or safety shall be made by determining whether a 
disinterested observer with knowledge of the essential facts 
known to or readily ascertainable by the employee or applicant 
could reasonably conclude that the actions of the Government 
evidence such violations, mismanagement, waste, abuse, or 
danger.''.

SEC. 1265. NONDISCLOSURE POLICIES, FORMS, AND AGREEMENTS.

  (a) Personnel Action.--Section 2302(a)(2)(A) of title 5, 
United States Code, is amended--
          (1) in clause (x), by striking ``and'' at the end;
          (2) by redesignating clause (xi) as clause (xii); and
          (3) by inserting after clause (x) the following:
                  ``(xi) the implementation or enforcement of 
                any nondisclosure policy, form, or agreement; 
                and''.
  (b) Prohibited Personnel Practice.--Section 2302(b) of title 
5, United States Code, is amended--
          (1) in paragraph (11), by striking ``or'' at the end;
          (2) by redesignating paragraph (12) as paragraph 
        (14); and
          (3) by inserting after paragraph (11) the following:
          ``(12) implement or enforce any nondisclosure policy, 
        form, or agreement, if such policy, form, or agreement 
        does not contain the following statement: `These 
        provisions are consistent with and do not supersede, 
        conflict with, or otherwise alter the employee 
        obligations, rights, or liabilities created by 
        Executive Order No. 12958; section 7211 of title 5, 
        United States Code (governing disclosures to Congress); 
        section 1034 of title 10, United States Code (governing 
        disclosures to Congress by members of the military); 
        section 2302(b)(8) of title 5, United States Code 
        (governing disclosures of illegality, waste, fraud, 
        abuse, or public health or safety threats); the 
        Intelligence Identities Protection Act of 1982 (50 
        U.S.C. 421 and following) (governing disclosures that 
        could expose confidential Government agents); and the 
        statutes which protect against disclosures that could 
        compromise national security, including sections 641, 
        793, 794, 798, and 952 of title 18, United States Code, 
        and section 4(b) of the Subversive Activities Control 
        Act of 1950 (50 U.S.C. 783(b)). The definitions, 
        requirements, obligations, rights, sanctions, and 
        liabilities created by such Executive order and such 
        statutory provisions are incorporated into this 
        agreement and are controlling.';
          ``(13) conduct, or cause to be conducted, an 
        investigation, other than any ministerial or 
        nondiscretionary factfinding activities necessary for 
        the agency to perform its mission, of an employee or 
        applicant for employment because of any activity 
        protected under this section; or''.

SEC. 1266. EXCLUSION OF AGENCIES BY THE PRESIDENT.

  Section 2302(a)(2)(C) of title 5, United States Code, is 
amended by striking clause (ii) and inserting the following:
                  ``(ii)(I) the Federal Bureau of 
                Investigation, the Central Intelligence Agency, 
                the Defense Intelligence Agency, the National 
                Geospatial-Intelligence Agency, or the National 
                Security Agency; or
                  ``(II) as determined by the President, any 
                Executive agency or unit thereof the principal 
                function of which is the conduct of foreign 
                intelligence or counterintelligence activities, 
                if the determination (as that determination 
                relates to a personnel action) is made before 
                that personnel action; or''.

SEC. 1267. DISCIPLINARY ACTION.

  Section 1215(a)(3) of title 5, United States Code, is amended 
to read as follows:
  ``(3)(A) A final order of the Board may impose--
          ``(i) disciplinary action consisting of removal, 
        reduction in grade, debarment from Federal employment 
        for a period not to exceed 5 years, suspension, or 
        reprimand;
          ``(ii) an assessment of a civil penalty not to exceed 
        $1,000; or
          ``(iii) any combination of disciplinary actions 
        described under clause (i) and an assessment described 
        under clause (ii).
  ``(B) In any case in which the Board finds that an employee 
has committed a prohibited personnel practice under paragraph 
(8) or (9) of section 2302(b), the Board shall impose 
disciplinary action if the Board finds that the activity 
protected under such paragraph (8) or (9) (as the case may be) 
was the primary motivating factor, unless that employee 
demonstrates, by a preponderance of the evidence, that the 
employee would have taken, failed to take, or threatened to 
take or fail to take the same personnel action, in the absence 
of such protected activity.''.

SEC. 1268. GOVERNMENT ACCOUNTABILITY OFFICE STUDY ON REVOCATION OF 
                    SECURITY CLEARANCES.

  (a) Requirement.--The Comptroller General shall conduct a 
study of security clearance revocations, taking effect after 
1996, with respect to personnel that filed claims under chapter 
12 of title 5, United States Code, in connection therewith. The 
study shall consist of an examination of the number of such 
clearances revoked, the number restored, and the relationship, 
if any, between the resolution of claims filed under such 
chapter and the restoration of such clearances.
  (b) Report.--Not later than 270 days after the date of the 
enactment of this Act, the Comptroller General shall submit to 
the Committee on Oversight and Government Reform of the House 
of Representatives and the Committee on Homeland Security and 
Governmental Affairs of the Senate a report on the results of 
the study required by subsection (a).

SEC. 1269. ALTERNATIVE RECOURSE.

  (a) In General.--Section 1221 of title 5, United States Code, 
is amended by adding at the end the following:
  ``(k)(1) If, in the case of an employee, former employee, or 
applicant for employment who seeks corrective action (or on 
behalf of whom corrective action is sought) from the Merit 
Systems Protection Board based on an alleged prohibited 
personnel practice described in section 2302(b)(8) or 
2302(b)(9)(B)-(D), no final order or decision is issued by the 
Board within 180 days after the date on which a request for 
such corrective action has been duly submitted (or, in the 
event that a final order or decision is issued by the Board, 
whether within that 180-day period or thereafter, then, within 
90 days after such final order or decision is issued, and so 
long as such employee, former employee, or applicant has not 
filed a petition for judicial review of such order or decision 
under subsection (h))--
          ``(A) such employee, former employee, or applicant 
        may, after providing written notice to the Board, bring 
        an action at law or equity for de novo review in the 
        appropriate United States district court, which shall 
        have jurisdiction over such action without regard to 
        the amount in controversy, and which action shall, at 
        the request of either party to such action, be tried by 
        the court with a jury; and
          ``(B) in any such action, the court--
                  ``(i) shall apply the standards set forth in 
                subsection (e); and
                  ``(ii) may award any relief which the court 
                considers appropriate, including any relief 
                described in subsection (g).
An appeal from a final decision of a district court in an 
action under this paragraph may, at the election of the 
appellant, be taken to the Court of Appeals for the Federal 
Circuit (which shall have jurisdiction of such appeal), in lieu 
of the United States court of appeals for the circuit embracing 
the district in which the action was brought.
  ``(2) For purposes of this subsection, the term `appropriate 
United States district court', as used with respect to an 
alleged prohibited personnel practice, means the United States 
district court for the district in which the prohibited 
personnel practice is alleged to have been committed, the 
judicial district in which the employment records relevant to 
such practice are maintained and administered, or the judicial 
district in which resides the employee, former employee, or 
applicant for employment allegedly affected by such practice.
  ``(3) This subsection applies with respect to any appeal, 
petition, or other request for corrective action duly submitted 
to the Board, whether pursuant to section 1214(b)(2), the 
preceding provisions of this section, section 7513(d), or any 
otherwise applicable provisions of law, rule, or regulation.''.
  (b) Review of MSPB Decisions.--Section 7703(b) of such title 
5 is amended--
          (1) in the first sentence of paragraph (1), by 
        striking ``the United States Court of Appeals for the 
        Federal Circuit'' and inserting ``the appropriate 
        United States court of appeals''; and
          (2) by adding at the end the following:
  ``(3) For purposes of the first sentence of paragraph (1), 
the term `appropriate United States court of appeals' means the 
United States Court of Appeals for the Federal Circuit, except 
that in the case of a prohibited personnel practice described 
in section 2302(b)(8) or 2302(b)(9)(B)-(D) (other than a case 
that, disregarding this paragraph, would otherwise be subject 
to paragraph (2)), such term means the United States Court of 
Appeals for the Federal Circuit and any United States court of 
appeals having jurisdiction over appeals from any United States 
district court which, under section 1221(k)(2), would be an 
appropriate United States district court for purposes of such 
prohibited personnel practice.''.
  (c) Compensatory Damages.--Section 1221(g)(1)(A)(ii) of such 
title 5 is amended by striking all after ``travel expenses,'' 
and inserting ``any other reasonable and foreseeable 
consequential damages, and compensatory damages (including 
attorney's fees, interest, reasonable expert witness fees, and 
costs).''.
   (d) Conforming Amendments.--
          (1) Section 1221(h) of such title 5 is amended by 
        adding at the end the following:
  ``(3) Judicial review under this subsection shall not be 
available with respect to any decision or order as to which the 
employee, former employee, or applicant has filed a petition 
for judicial review under subsection (k).''.
          (2) Section 7703(c) of such title 5 is amended by 
        striking ``court.'' and inserting ``court, and in the 
        case of a prohibited personnel practice described in 
        section 2302(b)(8) or 2302(b)(9)(B)-(D) brought under 
        any provision of law, rule, or regulation described in 
        section 1221(k)(3), the employee or applicant shall 
        have the right to de novo review in accordance with 
        section 1221(k).''.

SEC. 1270. NATIONAL SECURITY WHISTLEBLOWER RIGHTS.

  (a) In General.--Chapter 23 of title 5, United States Code, 
is amended by inserting after section 2303 the following:

``Sec. 2303a. National security whistleblower rights

  ``(a) Prohibition of Reprisals.--
          ``(1) In general.--In addition to any rights provided 
        in section 2303 of this title, title VII of Public Law 
        105-272, or any other provision of law, an employee or 
        former employee in a covered agency may not be 
        discharged, demoted, or otherwise discriminated against 
        (including by denying, suspending, or revoking a 
        security clearance, or by otherwise restricting access 
        to classified or sensitive information) as a reprisal 
        for making a disclosure described in paragraph (2).
          ``(2) Disclosures described.--A disclosure described 
        in this paragraph is any disclosure of covered 
        information which is made--
                  ``(A) by an employee or former employee in a 
                covered agency (without restriction as to time, 
                place, form, motive, context, or prior 
                disclosure made to any person by an employee or 
                former employee, including a disclosure made in 
                the course of an employee's duties); and
                  ``(B) to an authorized Member of Congress, an 
                authorized official of an Executive agency, or 
                the Inspector General of the covered agency in 
                which such employee or former employee is or 
                was employed.
  ``(b) Investigation of Complaints.--An employee or former 
employee in a covered agency who believes that such employee or 
former employee has been subjected to a reprisal prohibited by 
subsection (a) may submit a complaint to the Inspector General 
and the head of the covered agency. The Inspector General shall 
investigate the complaint and, unless the Inspector General 
determines that the complaint is frivolous, submit a report of 
the findings of the investigation within 120 days to the 
employee or former employee (as the case may be) and to the 
head of the covered agency.
  ``(c) Remedy.--
          ``(1) Within 180 days of the filing of the complaint, 
        the head of the covered agency shall, taking into 
        consideration the report of the Inspector General under 
        subsection (b) (if any), determine whether the employee 
        or former employee has been subjected to a reprisal 
        prohibited by subsection (a), and shall either issue an 
        order denying relief or shall implement corrective 
        action to return the employee or former employee, as 
        nearly as possible, to the position he would have held 
        had the reprisal not occurred, including voiding any 
        directive or order denying, suspending, or revoking a 
        security clearance or otherwise restricting access to 
        classified or sensitive information that constituted a 
        reprisal, as well as providing back pay and related 
        benefits, medical costs incurred, travel expenses, any 
        other reasonable and foreseeable consequential damages, 
        and compensatory damages (including attorney's fees, 
        interest, reasonable expert witness fees, and costs). 
        If the head of the covered agency issues an order 
        denying relief, he shall issue a report to the employee 
        or former employee detailing the reasons for the 
        denial.
          ``(2)(A) If the head of the covered agency, in the 
        process of implementing corrective action under 
        paragraph (1), voids a directive or order denying, 
        suspending, or revoking a security clearance or 
        otherwise restricting access to classified or sensitive 
        information that constituted a reprisal, the head of 
        the covered agency may re-initiate procedures to issue 
        a directive or order denying, suspending, or revoking a 
        security clearance or otherwise restricting access to 
        classified or sensitive information only if those re-
        initiated procedures are based exclusively on national 
        security concerns and are unrelated to the actions 
        constituting the original reprisal.
          ``(B) In any case in which the head of a covered 
        agency re-initiates procedures under subparagraph (A), 
        the head of the covered agency shall issue an 
        unclassified report to its Inspector General and to 
        authorized Members of Congress (with a classified 
        annex, if necessary), detailing the circumstances of 
        the agency's re-initiated procedures and describing the 
        manner in which those procedures are based exclusively 
        on national security concerns and are unrelated to the 
        actions constituting the original reprisal. The head of 
        the covered agency shall also provide periodic updates 
        to the Inspector General and authorized Members of 
        Congress detailing any significant actions taken as a 
        result of those procedures, and shall respond promptly 
        to inquiries from authorized Members of Congress 
        regarding the status of those procedures.
          ``(3) If the head of the covered agency has not made 
        a determination under paragraph (1) within 180 days of 
        the filing of the complaint (or he has issued an order 
        denying relief, in whole or in part, whether within 
        that 180-day period or thereafter, then, within 90 days 
        after such order is issued), the employee or former 
        employee may bring an action at law or equity for de 
        novo review to seek any corrective action described in 
        paragraph (1) in the appropriate United States district 
        court (as defined by section 1221(k)(2)), which shall 
        have jurisdiction over such action without regard to 
        the amount in controversy. An appeal from a final 
        decision of a district court in an action under this 
        paragraph may, at the election of the appellant, be 
        taken to the Court of Appeals for the Federal Circuit 
        (which shall have jurisdiction of such appeal), in lieu 
        of the United States court of appeals for the circuit 
        embracing the district in which the action was brought.
          ``(4) An employee or former employee adversely 
        affected or aggrieved by an order issued under 
        paragraph (1), or who seeks review of any corrective 
        action determined under paragraph (1), may obtain 
        judicial review of such order or determination in the 
        United States Court of Appeals for the Federal Circuit 
        or any United States court of appeals having 
        jurisdiction over appeals from any United States 
        district court which, under section 1221(k)(2), would 
        be an appropriate United States district court. No 
        petition seeking such review may be filed more than 60 
        days after issuance of the order or the determination 
        to implement corrective action by the head of the 
        agency. Review shall conform to chapter 7.
          ``(5)(A) If, in any action for damages or relief 
        under paragraph (3) or (4), an Executive agency moves 
        to withhold information from discovery based on a claim 
        that disclosure would be inimical to national security 
        by asserting the privilege commonly referred to as the 
        `state secrets privilege', and if the assertion of such 
        privilege prevents the employee or former employee from 
        establishing an element in support of the employee's or 
        former employee's claim, the court shall resolve the 
        disputed issue of fact or law in favor of the employee 
        or former employee, provided that an Inspector General 
        investigation under subsection (b) has resulted in 
        substantial confirmation of that element, or those 
        elements, of the employee's or former employee's claim.
          ``(B) In any case in which an Executive agency 
        asserts the privilege commonly referred to as the 
        `state secrets privilege', whether or not an Inspector 
        General has conducted an investigation under subsection 
        (b), the head of that agency shall, at the same time it 
        asserts the privilege, issue a report to authorized 
        Members of Congress, accompanied by a classified annex 
        if necessary, describing the reasons for the assertion, 
        explaining why the court hearing the matter does not 
        have the ability to maintain the protection of 
        classified information related to the assertion, 
        detailing the steps the agency has taken to arrive at a 
        mutually agreeable settlement with the employee or 
        former employee, setting forth the date on which the 
        classified information at issue will be declassified, 
        and providing all relevant information about the 
        underlying substantive matter.
  ``(d) Applicability to Non-Covered Agencies.--An employee or 
former employee in an Executive agency (or element or unit 
thereof) that is not a covered agency shall, for purposes of 
any disclosure of covered information (as described in 
subsection (a)(2)) which consists in whole or in part of 
classified or sensitive information, be entitled to the same 
protections, rights, and remedies under this section as if that 
Executive agency (or element or unit thereof) were a covered 
agency.
  ``(e) Construction.--Nothing in this section may be 
construed--
          ``(1) to authorize the discharge of, demotion of, or 
        discrimination against an employee or former employee 
        for a disclosure other than a disclosure protected by 
        subsection (a) or (d) of this section or to modify or 
        derogate from a right or remedy otherwise available to 
        an employee or former employee; or
          ``(2) to preempt, modify, limit, or derogate any 
        rights or remedies available to an employee or former 
        employee under any other provision of law, rule, or 
        regulation (including the Lloyd-La Follette Act).
No court or administrative agency may require the exhaustion of 
any right or remedy under this section as a condition for 
pursuing any other right or remedy otherwise available to an 
employee or former employee under any other provision of law, 
rule, or regulation (as referred to in paragraph (2)).
  ``(f) Definitions.--For purposes of this section--
          ``(1) the term `covered information', as used with 
        respect to an employee or former employee, means any 
        information (including classified or sensitive 
        information) which the employee or former employee 
        reasonably believes evidences--
                  ``(A) any violation of any law, rule, or 
                regulation; or
                  ``(B) gross mismanagement, a gross waste of 
                funds, an abuse of authority, or a substantial 
                and specific danger to public health or safety;
          ``(2) the term `covered agency' means--
                  ``(A) the Federal Bureau of Investigation, 
                the Office of the Director of National 
                Intelligence, the Central Intelligence Agency, 
                the Defense Intelligence Agency, the National 
                Geospatial-Intelligence Agency, the National 
                Security Agency, and the National 
                Reconnaissance Office; and
                  ``(B) any other Executive agency, or element 
                or unit thereof, determined by the President 
                under section 2302(a)(2)(C)(ii)(II) to have as 
                its principal function the conduct of foreign 
                intelligence or counterintelligence activities;
          ``(3) the term `authorized Member of Congress' 
        means--
                  ``(A) with respect to covered information 
                about sources and methods of the Central 
                Intelligence Agency, the Director of National 
                Intelligence, and the National Intelligence 
                Program (as defined in section 3(6) of the 
                National Security Act of 1947), a member of the 
                House Permanent Select Committee on 
                Intelligence, the Senate Select Committee on 
                Intelligence, or any other committees of the 
                House of Representatives or Senate to which 
                this type of information is customarily 
                provided;
                  ``(B) with respect to special access programs 
                specified in section 119 of title 10, an 
                appropriate member of the Congressional defense 
                committees (as defined in such section); and
                  ``(C) with respect to other covered 
                information, a member of the House Permanent 
                Select Committee on Intelligence, the Senate 
                Select Committee on Intelligence, the House 
                Committee on Oversight and Government Reform, 
                the Senate Committee on Homeland Security and 
                Governmental Affairs, or any other committees 
                of the House of Representatives or the Senate 
                that have oversight over the program which the 
                covered information concerns; and
          ``(4) the term `authorized official of an Executive 
        agency' shall have such meaning as the Office of 
        Personnel Management shall by regulation prescribe, 
        except that such term shall, with respect to any 
        employee or former employee in an agency, include the 
        head, the general counsel, and the ombudsman of such 
        agency.''.
  (b) Clerical Amendment.--The table of sections for chapter 23 
of title 5, United States Code, is amended by inserting after 
the item relating to section 2303 the following:

``2303a. National security whistleblower rights.''.

SEC. 1271. ENHANCEMENT OF CONTRACTOR EMPLOYEE WHISTLEBLOWER 
                    PROTECTIONS.

  (a) Civilian Agency Contracts.--Section 315(c) of the Federal 
Property and Administrative Services Act of 1949 (41 U.S.C. 
265(c)) is amended--
          (1) in paragraph (1), by striking ``If the head'' and 
        all that follows through ``actions:'' and inserting the 
        following: ``Not later than 180 days after submission 
        of a complaint under subsection (b), the head of the 
        executive agency concerned shall determine whether the 
        contractor concerned has subjected the complainant to a 
        reprisal prohibited by subsection (a) and shall either 
        issue an order denying relief or shall take one or more 
        of the following actions:''; and
          (2) by redesignating paragraph (3) as paragraph (4) 
        and adding after paragraph (2) the following new 
        paragraph (3):
  ``(3) If the head of an executive agency has not issued an 
order within 180 days after the submission of a complaint under 
subsection (b) and there is no showing that such delay is due 
to the bad faith of the complainant, the complainant shall be 
deemed to have exhausted his administrative remedies with 
respect to the complaint, and the complainant may bring an 
action at law or equity for de novo review to seek compensatory 
damages and other relief available under this section in the 
appropriate district court of the United States, which shall 
have jurisdiction over such an action without regard to the 
amount in controversy, and which action shall, at the request 
of either party to such action, be tried by the court with a 
jury.''.
  (b) Armed Services Contracts.--Section 2409(c) of title 10, 
United States Code, is amended--
          (1) in paragraph (1), by striking ``If the head'' and 
        all that follows through ``actions:'' and inserting the 
        following: ``Not later than 180 days after submission 
        of a complaint under subsection (b), the head of the 
        agency concerned shall determine whether the contractor 
        concerned has subjected the complainant to a reprisal 
        prohibited by subsection (a) and shall either issue an 
        order denying relief or shall take one or more of the 
        following actions:''; and
          (2) by redesignating paragraph (3) as paragraph (4) 
        and adding after paragraph (2) the following new 
        paragraph (3):
  ``(3) If the head of an agency has not issued an order within 
180 days after the submission of a complaint under subsection 
(b) and there is no showing that such delay is due to the bad 
faith of the complainant, the complainant shall be deemed to 
have exhausted his administrative remedies with respect to the 
complaint, and the complainant may bring an action at law or 
equity for de novo review to seek compensatory damages and 
other relief available under this section in the appropriate 
district court of the United States, which shall have 
jurisdiction over such an action without regard to the amount 
in controversy, and which action shall, at the request of 
either party to such action, be tried by the court with a 
jury.''.

SEC. 1272. PROHIBITED PERSONNEL PRACTICES AFFECTING THE TRANSPORTATION 
                    SECURITY ADMINISTRATION.

  (a) In General.--Chapter 23 of title 5, United States Code, 
is amended--
          (1) by redesignating sections 2304 and 2305 as 
        sections 2305 and 2306, respectively; and
          (2) by inserting after section 2303a (as inserted by 
        section 1270) the following:

``Sec. 2304. Prohibited personnel practices affecting the 
                    Transportation Security Administration

  ``(a) In General.--Notwithstanding any other provision of 
law, any individual holding or applying for a position within 
the Transportation Security Administration shall be covered 
by--
          ``(1) the provisions of section 2302(b)(1), (8), and 
        (9);
          ``(2) any provision of law implementing section 
        2302(b)(1), (8), or (9) by providing any right or 
        remedy available to an employee or applicant for 
        employment in the civil service; and
          ``(3) any rule or regulation prescribed under any 
        provision of law referred to in paragraph (1) or (2).
  ``(b) Rule of Construction.--Nothing in this section shall be 
construed to affect any rights, apart from those described in 
subsection (a), to which an individual described in subsection 
(a) might otherwise be entitled under law.
  ``(c) Effective Date.--This section shall take effect as of 
the date of the enactment of this section.''.
  (b) Clerical Amendment.--The table of sections for chapter 23 
of title 5, United States Code, is amended by striking the 
items relating to sections 2304 and 2305, respectively, and by 
inserting the following:

``2304. Prohibited personnel practices affecting the Transportation 
          Security Administration.
``2305. Responsibility of the Government Accountability Office.
``2306. Coordination with certain other provisions of law.''.

SEC. 1273. CLARIFICATION OF WHISTLEBLOWER RIGHTS RELATING TO SCIENTIFIC 
                    AND OTHER RESEARCH.

  (a) In General.--Section 2302 of title 5, United States Code, 
is amended by adding at the end the following:
  ``(f) As used in section 2302(b)(8), the term `abuse of 
authority' includes--
          ``(1) any action that compromises the validity or 
        accuracy of federally funded research or analysis;
          ``(2) the dissemination of false or misleading 
        scientific, medical, or technical information;
          ``(3) any action that restricts or prevents an 
        employee or any person performing federally funded 
        research or analysis from publishing in peer-reviewed 
        journals or other scientific publications or making 
        oral presentations at professional society meetings or 
        other meetings of their peers; and
          ``(4) any action that discriminates for or against 
        any employee or applicant for employment on the basis 
        of religion, as defined by section 1273(b) of the 
        Whistleblower Protection Enhancement Act of 2009.''.
  (b) Definition.--As used in section 2302(f)(3) of title 5, 
United States Code (as amended by subsection (a)), the term 
``on the basis of religion'' means--
          (1) prohibiting personal religious expression by 
        Federal employees to the greatest extent possible, 
        consistent with requirements of law and interests in 
        workplace efficiency;
          (2) requiring religious participation or non-
        participation as a condition of employment, or 
        permitting religious harassment;
          (3) failing to accommodate employees' exercise of 
        their religion;
          (4) failing to treat all employees with the same 
        respect and consideration, regardless of their religion 
        (or lack thereof);
          (5) restricting personal religious expression by 
        employees in the Federal workplace except where the 
        employee's interest in the expression is outweighed by 
        the government's interest in the efficient provision of 
        public services or where the expression intrudes upon 
        the legitimate rights of other employees or creates the 
        appearance, to a reasonable observer, of an official 
        endorsement of religion;
          (6) regulating employees' personal religious 
        expression on the basis of its content or viewpoint, or 
        suppressing employees' private religious speech in the 
        workplace while leaving unregulated other private 
        employee speech that has a comparable effect on the 
        efficiency of the workplace, including ideological 
        speech on politics and other topics;
          (7) failing to exercise their authority in an 
        evenhanded and restrained manner, and with regard for 
        the fact that Americans are used to expressions of 
        disagreement on controversial subjects, including 
        religious ones;
          (8) failing to permit an employee to engage in 
        private religious expression in personal work areas not 
        regularly open to the public to the same extent that 
        they may engage in nonreligious private expression, 
        subject to reasonable content- and viewpoint-neutral 
        standards and restrictions;
          (9) failing to permit an employee to engage in 
        religious expression with fellow employees, to the same 
        extent that they may engage in comparable nonreligious 
        private expression, subject to reasonable and content-
        neutral standards and restrictions;
          (10) failing to permit an employee to engage in 
        religious expression directed at fellow employees, and 
        may even attempt to persuade fellow employees of the 
        correctness of their religious views, to the same 
        extent as those employees may engage in comparable 
        speech not involving religion;
          (11) inhibiting an employee from urging a colleague 
        to participate or not to participate in religious 
        activities to the same extent that, consistent with 
        concerns of workplace efficiency, they may urge their 
        colleagues to engage in or refrain from other personal 
        endeavors, except that the employee must refrain from 
        such expression when a fellow employee asks that it 
        stop or otherwise demonstrates that it is unwelcome;
          (12) failing to prohibit expression that is part of a 
        larger pattern of verbal attacks on fellow employees 
        (or a specific employee) not sharing the faith of the 
        speaker;
          (13) preventing an employee from--
                  (A) wearing personal religious jewelry absent 
                special circumstances (such as safety concerns) 
                that might require a ban on all similar 
                nonreligious jewelry; or
                  (B) displaying religious art and literature 
                in their personal work areas to the same extent 
                that they may display other art and literature, 
                so long as the viewing public would reasonably 
                understand the religious expression to be that 
                of the employee acting in her personal 
                capacity, and not that of the government 
                itself;
          (14) prohibiting an employee from using their private 
        time to discuss religion with willing coworkers in 
        public spaces to the same extent as they may discuss 
        other subjects, so long as the public would reasonably 
        understand the religious expression to be that of the 
        employees acting in their personal capacities;
          (15) discriminating against an employee on the basis 
        of their religion, religious beliefs, or views 
        concerning their religion by promoting, refusing to 
        promote, hiring, refusing to hire, or otherwise 
        favoring or disfavoring, an employee or potential 
        employee because of his or her religion, religious 
        beliefs, or views concerning religion, or by explicitly 
        or implicitly, insisting that the employee participate 
        in religious activities as a condition of continued 
        employment, promotion, salary increases, preferred job 
        assignments, or any other incidents of employment or 
        insisting that an employee refrain from participating 
        in religious activities outside the workplace except 
        pursuant to otherwise legal, neutral restrictions that 
        apply to employees' off-duty conduct and expression in 
        general (such as restrictions on political activities 
        prohibited by the Hatch Act);
          (16) prohibiting a supervisor's religious expression 
        where it is not coercive and is understood to be his or 
        her personal view, in the same way and to the same 
        extent as other constitutionally valued speech;
          (17) permitting a hostile environment, or religious 
        harassment, in the form of religiously discriminatory 
        intimidation, or pervasive or severe religious ridicule 
        or insult, whether by supervisors or fellow workers, as 
        determined by its frequency or repetitiveness, and 
        severity;
          (18) failing to accommodate an employee's exercise of 
        their religion unless such accommodation would impose 
        an undue hardship on the conduct of the agency's 
        operations, based on real rather than speculative or 
        hypothetical cost and without disfavoring other, 
        nonreligious accommodations; and
          (19) in those cases where an agency's work rule 
        imposes a substantial burden on a particular employee's 
        exercise of religion, failing to grant the employee an 
        exemption from that rule, absent a compelling interest 
        in denying the exemption and where there is no less 
        restrictive means of furthering that interest.
  (c) Rule of Construction.--Nothing in this section shall be 
construed to create any new right, benefit, or trust 
responsibility, substantive or procedural, enforceable at law 
or equity by a party against the United States, its agencies, 
its officers, or any person.

SEC. 1274. EFFECTIVE DATE.

  This part shall take effect 30 days after the date of the 
enactment of this Act, except as provided in the amendment made 
by section 1272(a)(2).
                              ----------                              

10. An Amendment To Be Offered by Representative Teaque of New Mexico, 
               or His Designee, Debatable for 10 Minutes

  At the end of section 1226 (page 25, after line 21), insert 
the following:
          (8) The website shall provide, by location, links to 
        and information on how to access job opportunities 
        created at or by entities receiving funding under this 
        Act, including, if possible, links to or information 
        about local employment agencies; state, local and other 
        public agencies receiving funding; and private firms 
        contracted to perform work funded by this Act
                              ----------                              

 11. An Amendment To Be Offered by Representative Camp of Michigan, or 
                 His Designee, Debatable for 60 Minutes

  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE, ETC.

  (a) Short Title.--This Act may be cited as the ``Economic 
Recovery Act of 2009''.
  (b) Table of Contents.--The table of contents of this Act is 
as follows:
Sec. 1. Short title, etc.

                         TITLE I--TAX PROVISIONS

Sec. 100. References.

     Subtitle A--Reduction in Individual Tax Rates For 2009 and 2010

Sec. 101. 10 percent rate bracket for individuals reduced to 5 percent 
          for 2009 and 2010.
Sec. 102. 15 percent rate bracket for individuals reduced to 10 percent 
          for 2009 and 2010.

       Subtitle B--Alternative Minimum Tax Relief For Individuals

Sec. 111. Extension of alternative minimum tax relief for nonrefundable 
          personal credits.
Sec. 112. Increase in alternative minimum tax exemption amounts for 2009 
          and 2010.

                 Subtitle C--First-Time Homebuyer Credit

Sec. 121. Extension and modification of first-time homebuyer credit.

                 Subtitle D--Tax Incentives For Business

                 Part 1--Temporary Investment Incentives

Sec. 131. Special allowance for certain property acquired during 2009.
Sec. 132. Temporary increase in limitations on expensing of certain 
          depreciable business assets.

              Part 2--5-Year Carryback of Operating Losses

Sec. 136. 5-year carryback of operating losses.
Sec. 137. Exception for TARP recipients.

          Part 3--Deduction For Qualified Small Business Income

Sec. 141. Deduction for qualified small business income.

       Part 4--Repeal of Withholding Tax on Government Contractors

Sec. 146. Repeal of withholding tax on government contractors.

     Subtitle E--Deduction For Qualified Health Insurance Costs of 
                               Individuals

Sec. 151. Above-the-line deduction for qualified health insurance costs 
          of individuals.

Subtitle F--Temporary Exclusion of Unemployment Compensation From Gross 
                                 Income

Sec. 161. Temporary exclusion of unemployment compensation from gross 
          income.

          Subtitle G--No Impact on Social Security Trust Funds

Sec. 171. No impact on social security trust funds.

               TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS

Sec. 200. Short title.
Sec. 201. Extension of emergency unemployment compensation program.
Sec. 202. Additional eligibility requirements for emergency unemployment 
          compensation.
Sec. 203. Special transfers.

             TITLE III--NO TAX INCREASES TO PAY FOR SPENDING

Sec. 301. No Tax Increases to Pay for Spending.

                        TITLE I--TAX PROVISIONS

SEC. 100. REFERENCES.

  Except as otherwise expressly provided, whenever in this 
title an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the 
reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

    Subtitle A--Reduction in Individual Tax Rates For 2009 and 2010

SEC. 101. 10 PERCENT RATE BRACKET FOR INDIVIDUALS REDUCED TO 5 PERCENT 
                    FOR 2009 AND 2010.

  (a) In General.--Clause (i) of section 1(i)(1)(A) is amended 
by inserting ``(5 percent in the case of any taxable year 
beginning in 2009 or 2010)'' after ``10 percent''.
  (b) Effective Date.--The amendment made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 102. 15 PERCENT RATE BRACKET FOR INDIVIDUALS REDUCED TO 10 PERCENT 
                    FOR 2009 AND 2010.

  (a) In General.--Subsection (i) of section 1 is amended by 
redesignating paragraph (3) as paragraph (4) and by inserting 
after paragraph (2) the following new paragraph:
          ``(3) Reduction in 15 percent rate for 2009 and 
        2010.--In the case of any taxable year beginning in 
        2009 or 2010, `10 percent' shall be substituted for `15 
        percent' in the tables under subsections (a), (b), (c), 
        (d), and (e). The preceding sentence shall be applied 
        after application of paragraph (1).''.
  (c) Effective Date.--The amendment made by this section shall 
apply to taxable years beginning after December 31, 2008.

       Subtitle B--Alternative Minimum Tax Relief For Individuals

SEC. 111. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR NONREFUNDABLE 
                    PERSONAL CREDITS.

  (a) In General.--Paragraph (2) of section 26(a) (relating to 
special rule for taxable years 2000 through 2008) is amended--
          (1) by striking ``or 2008'' and inserting ``2008, 
        2009, or 2010'', and
          (2) by striking ``2008'' in the heading thereof and 
        inserting ``2010''.
  (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.

SEC. 112. INCREASE IN ALTERNATIVE MINIMUM TAX EXEMPTION AMOUNTS FOR 
                    2009 AND 2010.

  (a) In General.--Paragraph (1) of section 55(d) (relating to 
exemption amount) is amended--
          (1) by striking ``($69,950 in the case of taxable 
        years beginning in 2008)'' in subparagraph (A) and 
        inserting ``($55,000 in the case of taxable years 
        beginning in 2009 or 2010)'', and
          (2) by striking ``($46,200 in the case of taxable 
        years beginning in 2008)'' in subparagraph (B) and 
        inserting ``($38,750 in the case of taxable years 
        beginning in 2009 or 2010)''.
  (b) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.

                Subtitle C--First-Time Homebuyer Credit

SEC. 121. EXTENSION AND MODIFICATION OF FIRST-TIME HOMEBUYER CREDIT.

  (a) Extension of Credit.--Subsection (i) of section 36 (as 
redesignated by subsection (d)) is amended by striking ``July 
1, 2009'' and inserting ``January 1, 2010''.
  (b) Repeal of First-Time Homebuyer Requirement.--
          (1) In general.--Subsection (a) of section 36 is 
        amended by striking ``an individual who is a first-time 
        homebuyer of a principal residence'' and inserting ``an 
        individual who purchases a principal residence''.
          (2) Conforming amendments.--
                  (A) Section 36(b)(1)(A) is amended by 
                inserting ``with respect to any taxpayer for 
                any taxable year'' after ``subsection (a)''.
                  (B) Section 36(c) is amended by striking 
                paragraph (1) and by redesignating paragraphs 
                (2) through (5) as paragraphs (1) through (4), 
                respectively.
                  (C) The heading of section 36 (and the item 
                relating to such section in the table of 
                sections for subpart C of part IV of subchapter 
                A of chapter 1) are amended by striking 
                ``first-time homebuyer'' and inserting 
                ``homebuyer''.
  (c) Repeal of Recapture Rules.--
          (1) In general.--Paragraph (4) of section 36(f) is 
        amended by adding at the end the following new 
        subparagraph:
                  ``(D) Waiver of recapture for purchases in 
                2009.--In the case of any credit allowed with 
                respect to the purchase of a principal 
                residence after December 31, 2008--
                          ``(i) paragraph (1) shall not apply, 
                        and
                          ``(ii) paragraph (2) shall apply only 
                        if the disposition or cessation 
                        described in paragraph (2) with respect 
                        to such residence occurs during the 36-
                        month period beginning on the date of 
                        the purchase of such residence by the 
                        taxpayer.''.
          (2) Conforming amendment.--Subsection (g) of section 
        36 is amended by striking ``subsection (c)'' and 
        inserting ``subsections (c) and (f)(4)(D)''.
  (d) Downpayment Requirement.--Section 36 is amended by 
redesignating subsection (h) as subsection (i) and by inserting 
after subsection (g) the following new subsection:
  ``(h) Downpayment Requirement.--No credit shall be allowed 
under subsection (a) to any taxpayer with respect to the 
purchase of any residence unless such taxpayer makes a 
downpayment of not less 5 percent of the purchase price of such 
residence. For purposes of the preceding sentence, an amount 
shall not be treated as a downpayment if such amount is 
repayable by the taxpayer to any other person.''.
  (e) Effective Date.--
          (1) In general.--Except as provided in paragraph (2), 
        the amendments made by this section shall apply to 
        residences purchased after December 31, 2008.
          (2) Downpayment requirement.--The amendment made by 
        subsection (d) shall apply to residences purchased 
        after the date of the enactment of this Act.

                Subtitle D--Tax Incentives For Business

                PART 1--TEMPORARY INVESTMENT INCENTIVES

SEC. 131. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009.

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

SEC. 132. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN 
                    DEPRECIABLE BUSINESS ASSETS.

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

              PART 2--5-YEAR CARRYBACK OF OPERATING LOSSES

SEC. 136. 5-YEAR CARRYBACK OF OPERATING LOSSES.

  (a) In General.--Subparagraph (H) of section 172(b)(1) is 
amended to read as follows:
                  ``(H) Carryback for 2008 and 2009 net 
                operating losses.--
                          ``(i) In general.--In the case of an 
                        applicable 2008 or 2009 net operating 
                        loss with respect to which the taxpayer 
                        has elected the application of this 
                        subparagraph--
                                  ``(I) subparagraph (A)(i) 
                                shall be applied by 
                                substituting any whole number 
                                elected by the taxpayer which 
                                is more than 2 and less than 6 
                                for `2',
                                  ``(II) subparagraph (E)(ii) 
                                shall be applied by 
                                substituting the whole number 
                                which is one less than the 
                                whole number substituted under 
                                subclause (II) for `2', and
                                  ``(III) subparagraph (F) 
                                shall not apply.
                          ``(ii) Applicable 2008 or 2009 net 
                        operating loss.--For purposes of this 
                        subparagraph, the term `applicable 2008 
                        or 2009 net operating loss' means--
                                  ``(I) the taxpayer's net 
                                operating loss for any taxable 
                                year ending in 2008 or 2009, or
                                  ``(II) if the taxpayer elects 
                                to have this subclause apply in 
                                lieu of subclause (I), the 
                                taxpayer's net operating loss 
                                for any taxable year beginning 
                                in 2008 or 2009.
                          ``(iii) Election.--Any election under 
                        this subparagraph shall be made in such 
                        manner as may be prescribed by the 
                        Secretary, and shall be made by the due 
                        date (including extension of time) for 
                        filing the taxpayer's return for the 
                        taxable year of the net operating loss. 
                        Any such election, once made, shall be 
                        irrevocable.
                          ``(iv) Coordination with alternative 
                        tax net operating loss deduction.--In 
                        the case of a taxpayer who elects to 
                        have clause (ii)(II) apply, section 
                        56(d)(1)(A)(ii) shall be applied by 
                        substituting `ending during 2001 or 
                        2002 or beginning during 2008 or 2009' 
                        for `ending during 2001, 2002, 2008, or 
                        2009'.''.
  (b) Alternative Tax Net Operating Loss Deduction.--Subclause 
(I) of section 56(d)(1)(A)(ii) is amended to read as follows:
                                  ``(I) the amount of such 
                                deduction attributable to the 
                                sum of carrybacks of net 
                                operating losses from taxable 
                                years ending during 2001, 2002, 
                                2008, or 2009 and carryovers of 
                                net operating losses to such 
                                taxable years, or''.
  (c) Loss From Operations of Life Insurance Companies.--
Subsection (b) of section 810 is amended by adding at the end 
the following new paragraph:
          ``(4) Carryback for 2008 and 2009 losses.--
                  ``(A) In general.--In the case of an 
                applicable 2008 or 2009 loss from operations 
                with respect to which the taxpayer has elected 
                the application of this paragraph, paragraph 
                (1)(A) shall be applied, at the election of the 
                taxpayer, by substituting `5' or `4' for `3'.
                  ``(B) Applicable 2008 or 2009 loss from 
                operations.--For purposes of this paragraph, 
                the term `applicable 2008 or 2009 loss from 
                operations' means--
                          ``(i) the taxpayer's loss from 
                        operations for any taxable year ending 
                        in 2008 or 2009, or
                          ``(ii) if the taxpayer elects to have 
                        this clause apply in lieu of clause 
                        (i), the taxpayer's loss from 
                        operations for any taxable year 
                        beginning in 2008 or 2009.
                  ``(C) Election.--Any election under this 
                paragraph shall be made in such manner as may 
                be prescribed by the Secretary, and shall be 
                made by the due date (including extension of 
                time) for filing the taxpayer's return for the 
                taxable year of the loss from operations. Any 
                such election, once made, shall be irrevocable.
                  ``(D) Coordination with alternative tax net 
                operating loss deduction.--In the case of a 
                taxpayer who elects to have subparagraph 
                (B)(ii) apply, section 56(d)(1)(A)(ii) shall be 
                applied by substituting `ending during 2001 or 
                2002 or beginning during 2008 or 2009' for 
                `ending during 2001, 2002, 2008, or 2009'.''.
  (d) Conforming Amendment.--Section 172 is amended by striking 
subsection (k).
  (e) Effective Date.--
          (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall 
        apply to net operating losses arising in taxable years 
        ending after December 31, 2007.
          (2) Alternative tax net operating loss deduction.--
        The amendment made by subsection (b) shall apply to 
        taxable years ending after 1997.
          (3) Loss from operations of life insurance 
        companies.--The amendment made by subsection (d) shall 
        apply to losses from operations arising in taxable 
        years ending after December 31, 2007.
          (4) Transitional rule.--In the case of a net 
        operating loss (or, in the case of a life insurance 
        company, a loss from operations) for a taxable year 
        ending before the date of the enactment of this Act--
                  (A) any election made under section 172(b)(3) 
                or 810(b)(3) of the Internal Revenue Code of 
                1986 with respect to such loss may 
                (notwithstanding such section) be revoked 
                before the applicable date,
                  (B) any election made under section 
                172(b)(1)(H) or 810(b)(4) of such Code with 
                respect to such loss shall (notwithstanding 
                such section) be treated as timely made if made 
                before the applicable date, and
                  (C) any application under section 6411(a) of 
                such Code with respect to such loss shall be 
                treated as timely filed if filed before the 
                applicable date.
        For purposes of this paragraph, the term ``applicable 
        date'' means the date which is 60 days after the date 
        of the enactment of this Act.

SEC. 137. EXCEPTION FOR TARP RECIPIENTS.

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

         PART 3--DEDUCTION FOR QUALIFIED SMALL BUSINESS INCOME

SEC. 141. DEDUCTION FOR QUALIFIED SMALL BUSINESS INCOME.

  (a) In General.--Paragraph (1) of section 199(a) is amended 
to read as follows:
          ``(1) In general.--There shall be allowed as a 
        deduction an amount equal to the sum of--
                  ``(A) 9 percent of the lesser of--
                          ``(i) the qualified production 
                        activities income of the taxpayer for 
                        the taxable year, or
                          ``(ii) taxable income (determined 
                        without regard to this section) for the 
                        taxable year, and
                  ``(B) in the case of a qualified small 
                business for a taxable year beginning in 2009 
                or 2010, 20 percent of the lesser of--
                          ``(i) the qualified small business 
                        income of the taxpayer for the taxable 
                        year, or
                          ``(ii) taxable income (determined 
                        without regard to this section) for the 
                        taxable year.''.
  (b) Qualified Small Business; Qualified Small Business 
Income.--Section 199 is amended by adding at the end the 
following new subsection:
  ``(e) Qualified Small Business; Qualified Small Business 
Income.--
          ``(1) Qualified small business.--
                  ``(A) In general.--For purposes of this 
                section, the term `qualified small business' 
                means any taxpayer for any taxable year if the 
                annual average number of employees employed by 
                such taxpayer during such taxable year was 500 
                or fewer.
                  ``(B) Aggregation rule.--For purposes of 
                subparagraph (A), any person treated as a 
                single employer under subsection (a) or (b) of 
                section 52 (applied without regard to section 
                1563(b)) or subsection (m) or (o) of section 
                414 shall be treated as 1 taxpayer for purposes 
                of this subsection.
                  ``(C) Special rule.--If a taxpayer is treated 
                as a qualified small business for any taxable 
                year, the taxpayer shall not fail to be treated 
                as a qualified small business for any 
                subsequent taxable year solely because the 
                number of employees employed by such taxpayer 
                during such subsequent taxable year exceeds 
                500. The preceding sentence shall cease to 
                apply to such taxpayer in the first taxable 
                year in which there is an ownership change (as 
                defined by section 382(g) in respect of a 
                corporation, or by applying principles 
                analogous to such ownership change in the case 
                of a taxpayer that is a partnership) with 
                respect to the stock (or partnership interests) 
                of the taxpayer.
          ``(2) Qualified small business income.--
                  ``(A) In general.--For purposes of this 
                section, the term `qualified small business 
                income' means the excess of--
                          ``(i) the income of the qualified 
                        small business which--
                                  ``(I) is attributable to the 
                                actual conduct of a trade or 
                                business,
                                  ``(II) is income from sources 
                                within the United States 
                                (within the meaning of section 
                                861), and
                                  ``(III) is not passive income 
                                (as defined in section 
                                904(d)(2)(B)), over
                          ``(ii) the sum of--
                                  ``(I) the cost of goods sold 
                                that are allocable to such 
                                income, and
                                  ``(II) other expenses, 
                                losses, or deductions (other 
                                than the deduction allowed 
                                under this section), which are 
                                properly allocable to such 
                                income.
                  ``(B) Exceptions.--The following shall not be 
                treated as income of a qualified small business 
                for purposes of subparagraph (A):
                          ``(i) Any income which is 
                        attributable to any property described 
                        in section 1400N(p)(3).
                          ``(ii) Any income which is 
                        attributable to the ownership or 
                        management of any professional sports 
                        team.
                          ``(iii) Any income which is 
                        attributable to a trade or business 
                        described in subparagraph (B) of 
                        section 1202(e)(3).
                          ``(iv) Any income which is 
                        attributable to any property with 
                        respect to which records are required 
                        to be maintained under section 2257 of 
                        title 18, United States Code.
                  ``(C) Allocation rules, etc.--Rules similar 
                to the rules of paragraphs (2), (3), (4)(D), 
                and (7) of subsection (c) shall apply for 
                purposes of this paragraph.
          ``(3) Special rules.--Except as otherwise provided by 
        the Secretary, rules similar to the rules of subsection 
        (d) shall apply for purposes of this subsection.''.
  (c) Conforming Amendment.--Section 199(a)(2) is amended by 
striking ``paragraph (1)'' and inserting ``paragraph (1)(A)''.
  (d) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.

      PART 4--REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS

SEC. 146. REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.

  Section 3402 is amended by striking subsection (t).

     Subtitle E--Deduction For Qualified Health Insurance Costs of 
                              Individuals

SEC. 151. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED HEALTH INSURANCE COSTS 
                    OF INDIVIDUALS.

  (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions) is amended by redesignating section 224 as section 
225 and by inserting after section 223 the following new 
section:

``SEC. 224. COSTS OF QUALIFIED HEALTH INSURANCE.

  ``(a) In General.--In the case of an individual, there shall 
be allowed as a deduction an amount equal to the amount paid 
during the taxable year for coverage for the taxpayer, his 
spouse, and dependents under qualified health insurance.
  ``(b) Qualified Health Insurance.--For purposes of this 
section, the term `qualified health insurance' means insurance 
which constitutes medical care; except that such term shall not 
include any insurance if substantially all of its coverage is 
of excepted benefits described in section 9832(c).
  ``(c) Special Rules.--
          ``(1) Coordination with medical deduction, etc.--Any 
        amount paid by a taxpayer for insurance to which 
        subsection (a) applies shall not be taken into account 
        in computing the amount allowable to the taxpayer as a 
        deduction under section 162(l) or 213(a). Any amount 
        taken into account in determining the credit allowed 
        under section 35 shall not be taken into account for 
        purposes of this section.
          ``(2) Deduction not allowed for self-employment tax 
        purposes.--The deduction allowable by reason of this 
        section shall not be taken into account in determining 
        an individual's net earnings from self-employment 
        (within the meaning of section 1402(a)) for purposes of 
        chapter 2.''.
  (b) Deduction Allowed in Computing Adjusted Gross Income.--
Subsection (a) of section 62 of such Code is amended by 
inserting before the last sentence the following new paragraph:
          ``(22) Costs of qualified health insurance.--The 
        deduction allowed by section 224.''.
  (c) Clerical Amendment.--The table of sections for part VII 
of subchapter B of chapter 1 of such Code is amended by 
redesignating the item relating to section 224 as an item 
relating to section 225 and inserting before such item the 
following new item:
``Sec. 224. Costs of qualified health insurance.''.
  (d) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2008.

Subtitle F--Temporary Exclusion of Unemployment Compensation From Gross 
                                 Income

SEC. 161. TEMPORARY EXCLUSION OF UNEMPLOYMENT COMPENSATION FROM GROSS 
                    INCOME.

  (a) In General.--Section 85 is amended by adding at the end 
the following new subsection:
  ``(c) Exclusion of Amounts Received in 2008 and 2009.--
Subsection (a) shall not apply to any unemployment compensation 
received in 2008 or 2009.''.
  (b) Effective Date.--The amendment made by subsection (a) 
shall apply to amounts received after December 31, 2007.

          Subtitle G--No Impact on Social Security Trust Funds

SEC. 171. NO IMPACT ON SOCIAL SECURITY TRUST FUNDS.

  (a) Estimate by Secretary of the Treasury.--The Secretary of 
the Treasury shall annually estimate the impact that the 
enactment of this Act has on the income and balances of the 
trust funds established under section 201 or 1817 of the Social 
Security Act (42 U.S.C. 401, 1395i).
  (b) Transfer of Funds.--If, under subsection (a), the 
Secretary of the Treasury estimates that the enactment of this 
Act has a negative impact on the income and balances of the 
trust funds established under section 201 or 1817 of the Social 
Security Act (42 U.S.C. 401, 1395i), the Secretary shall 
transfer, not less frequently than quarterly, from the general 
revenues of the Federal Government an amount sufficient so as 
to ensure that the income and balances of such trust funds are 
not reduced as a result of the enactment of this Act.

              TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS

SEC. 200. SHORT TITLE.

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

SEC. 201. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

  (a) In General.--Section 4007 of the Supplemental 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
note), as amended by section 4 of the Unemployment Compensation 
Extension Act of 2008 (Public Law 110-449; 122 Stat. 5015), is 
amended--
          (1) by striking ``March 31, 2009'' each place it 
        appears and inserting ``December 31, 2009'';
          (2) in the heading for subsection (b)(2), by striking 
        ``march 31, 2009'' and inserting ``december 31, 2009''; 
        and
          (3) in subsection (b)(3), by striking ``August 27, 
        2009'' and inserting ``May 31, 2010''.
  (b) Financing Provisions.--Section 4004 of such Act is 
amended by adding at the end the following:
  ``(e) Transfer of Funds.--Notwithstanding any other provision 
of law, the Secretary of the Treasury shall transfer from the 
general fund of the Treasury (from funds not otherwise 
appropriated)--
          ``(1) to the extended unemployment compensation 
        account (as established by section 905 of the Social 
        Security Act) such sums as the Secretary of Labor 
        estimates to be necessary to make payments to States 
        under this title by reason of the amendments made by 
        section 201(a) of the Assistance for Unemployed Workers 
        Act; and
          ``(2) to the employment security administration 
        account (as established by section 901 of the Social 
        Security Act) such sums as the Secretary of Labor 
        estimates to be necessary for purposes of assisting 
        States in meeting administrative costs by reason of the 
        amendments referred to in paragraph (1).
There are appropriated from the general fund of the Treasury, 
without fiscal year limitation, the sums referred to in the 
preceding sentence and such sums shall not be required to be 
repaid.''.

SEC. 202. ADDITIONAL ELIGIBILITY REQUIREMENTS FOR EMERGENCY 
                    UNEMPLOYMENT COMPENSATION.

  Section 4001 of the Supplemental Appropriations Act, 2008 
(Public Law 110-252; 26 U.S.C. 3304 note) is amended by adding 
at the end the following:

                 ``Additional Eligibility Requirements

  ``(g)(1) In General.--A State shall require as a condition of 
eligibility for emergency unemployment compensation under this 
Act for any week--
          ``(A) in the case of any individual described in 
        paragraph (2), that such individual--
                  ``(i) have a secondary school diploma or its 
                recognized equivalent; or
                  ``(ii) be making satisfactory progress in a 
                program that leads to a secondary school 
                diploma or its recognized equivalent; and
          ``(B) in the case of any individual described in 
        paragraph (3), that such individual participate in 
        reemployment services or in similar services (or, if 
        such services were ongoing as of when such individual 
        most recently exhausted regular compensation before 
        seeking emergency unemployment compensation, that such 
        individual continue to participate in such services), 
        unless the State agency charged with the administration 
        of the State law determines that--
                  ``(i) such individual has completed such 
                services as of a date subsequent to the 
                commencement of emergency unemployment 
                compensation; or
                  ``(ii) there is justifiable cause for such 
                individual's failure to participate in such 
                services.
  ``(2) Individuals to whom paragraph (1)(A) applies.--The 
requirements of paragraph (1)(A) shall apply in the case of any 
individual who was under age 30 at the time of filing an 
initial claim for the regular compensation that such individual 
most recently exhausted before seeking emergency unemployment 
compensation.
  ``(3) Individuals to whom paragraph (1)(B) applies.--The 
requirements of paragraph (1)(B) shall apply in the case of any 
individual who, as of the time of filing an initial claim for 
the regular compensation that such individual most recently 
exhausted before seeking emergency unemployment compensation, 
was identified under the State profiling system (described in 
section 303(j) of the Social Security Act) as being a claimant 
who--
          ``(A) was likely to exhaust regular compensation; and
          ``(B) would need job search assistance services to 
        make a successful transition to new employment.
  ``(4) Effective Date.--This subsection shall apply in the 
case of any individual filing an initial application for 
emergency unemployment compensation after the end of the 3-
month period beginning on the date of the enactment of this 
subsection.''.

SEC. 203. SPECIAL TRANSFERS.

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

          ``Special Transfer in Fiscal Year 2009 for Benefits

  ``(f)(1) In addition to any other amounts, the Secretary of 
the Treasury shall transfer from the Federal unemployment 
account to the account of each State in the Unemployment Trust 
Fund, within 30 days after the date of the enactment of this 
subsection, the amount determined with respect to such State 
under paragraph (2).
  ``(2) The amount to be transferred under this subsection to a 
State account shall (as determined by the Secretary of Labor 
and certified by such Secretary to the Secretary of the 
Treasury) be equal to the amount obtained by multiplying 
$7,000,000,000 by the same ratio as would apply under 
subsection (a)(2)(B) for purposes of determining such State's 
share of any excess amount (as described in subsection (a)(1)) 
that would have been subject to transfer to State accounts, as 
of October 1, 2008, under the provisions of subsection (a).
  ``(3) Any amount transferred to the account of a State as a 
result of the enactment of this subsection may be used by the 
State agency of such State only in the payment of cash benefits 
to individuals with respect to their unemployment, exclusive of 
expenses of administration.

       ``Special Transfer in Fiscal Year 2009 for Administration

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

            TITLE III--NO TAX INCREASES TO PAY FOR SPENDING

SEC. 301. NO TAX INCREASES TO PAY FOR SPENDING.

  (a) Findings.--The Congress finds that--
          (1) according to the economic forecast released by 
        the non-partisan Congressional Budget Office on January 
        7, 2009, unemployment in the United States is expected 
        to be above the level estimated for calendar year 2008 
        until the year 2015, and
          (2) raising taxes on families and employers during 
        times of high unemployment delays economic recovery and 
        the creation of new jobs.
  (b) Declaration of Policy.--It is the policy of the United 
States that--
          (1) outlays from the Treasury of the United States 
        that occur as a result of any provision of this Act 
        shall not be offset through the enactment of new 
        legislation that results in increases in revenues to 
        the Treasury of the United States, but, if such outlays 
        are offset, such offsets shall be through the enactment 
        of legislation that results in a reduction in other 
        outlays, and
          (2) the effective rate of tax imposed on individuals 
        or businesses shall not be increased, whether by 
        operation of a provision of existing law or the 
        enactment of new legislation, during any year in which 
        unemployment is projected to exceed the level of 
        unemployment for calendar year 2008.

                                  
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