‘‘(B) ADJUSTED MINIMUM PERCENTAGE.— 
A State’s adjusted minimum percentage for any 
calendar year is the product of— 
‘‘(i) the minimum percentage de-
scribed in section 1124(d) of the Elemen-
tary and Secondary Education Act of 1965 
(20 U.S.C. 6334(d)) for such State for the 
most recent fiscal year ending before such 
calendar year, multiplied by 
‘‘(ii) 1.68. 
‘‘(3) 
ALLOCATIONS
TO
CERTAIN
POSSES-
SIONS.—The amount to be allocated under para-
graph (1) to any possession of the United States 
other than Puerto Rico shall be the amount which 
would have been allocated if all allocations under 
paragraph (1) were made on the basis of respective 
populations of individuals below the poverty line (as 
defined by the Office of Management and Budget). 
In making other allocations, the amount to be allo-
cated under paragraph (1) shall be reduced by the 
aggregate amount allocated under this paragraph to 
possessions of the United States. 
‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In 
addition to the amounts otherwise allocated under 
this subsection, $200,000,000 for calendar year 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
2009, and $200,000,000 for calendar year 2010, 
shall be allocated by the Secretary of the Interior for 
purposes of the construction, rehabilitation, and re-
pair of schools funded by the Bureau of Indian Af-
fairs. In the case of amounts allocated under the 
preceding sentence, Indian tribal governments (as 
defined in section 7701(a)(40)) shall be treated as 
qualified issuers for purposes of this subchapter. 
‘‘(e) 40 PERCENT
OF
LIMITATION
ALLOCATED 
AMONG LARGEST SCHOOL DISTRICTS.— 
‘‘(1) IN GENERAL.—40 percent of the limitation 
applicable under subsection (c) for any calendar year 
shall be allocated under paragraph (2) by the Sec-
retary among local educational agencies which are 
large local educational agencies for such year. 
‘‘(2) ALLOCATION FORMULA.—The amount to 
be allocated under paragraph (1) for any calendar 
year shall be allocated among large local educational 
agencies in proportion to the respective amounts 
each such agency received for Basic Grants under 
subpart 2 of part A of title I of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6331 
et seq.) for the most recent fiscal year ending before 
such calendar year. 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
‘‘(3) ALLOCATION OF UNUSED LIMITATION TO 
STATE.—The amount allocated under this subsection 
to a large local educational agency for any calendar 
year may be reallocated by such agency to the State 
in which such agency is located for such calendar 
year. Any amount reallocated to a State under the 
preceding sentence may be allocated as provided in 
subsection (d)(1). 
‘‘(4) LARGE LOCAL EDUCATIONAL AGENCY.— 
For purposes of this section, the term ‘large local 
educational agency’ means, with respect to a cal-
endar year, any local educational agency if such 
agency is— 
‘‘(A) among the 100 local educational 
agencies with the largest numbers of children 
aged 5 through 17 from families living below 
the poverty level, as determined by the Sec-
retary using the most recent data available 
from the Department of Commerce that are 
satisfactory to the Secretary, or 
‘‘(B) 1 of not more than 25 local edu-
cational agencies (other than those described in 
subparagraph (A)) that the Secretary of Edu-
cation determines (based on the most recent 
data available satisfactory to the Secretary) are 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
in particular need of assistance, based on a low 
level of resources for school construction, a high 
level of enrollment growth, or such other factors 
as the Secretary deems appropriate. 
‘‘(f) CARRYOVER OF UNUSED LIMITATION.—If for 
any calendar year— 
‘‘(1) the amount allocated under subsection (d) 
to any State, exceeds 
‘‘(2) the amount of bonds issued during such 
year which are designated under subsection (a) pur-
suant to such allocation, 
the limitation amount under such subsection for such 
State for the following calendar year shall be increased 
by the amount of such excess. A similar rule shall apply 
to the amounts allocated under subsection (d)(4) or (e).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 54A(d) is amended 
by striking ‘‘or’’ at the end of subparagraph (C), by 
inserting ‘‘or’’ at the end of subparagraph (D), and 
by inserting after subparagraph (D) the following 
new subparagraph: 
‘‘(E) 
a 
qualified 
school 
construction 
bond,’’. 
(2) Subparagraph (C) of section 54A(d)(2) is 
amended by striking ‘‘and’’ at the end of clause (iii), 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
by striking the period at the end of clause (iv) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new clause: 
‘‘(v) in the case of a qualified school 
construction bond, a purpose specified in 
section 54F(a)(1).’’. 
(3) The table of sections for subpart I of part 
IV of subchapter A of chapter 1 is amended by add-
ing at the end the following new item: 
‘‘Sec. 54F. Qualified school construction bonds.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after Decem-
ber 31, 2008. 
SEC. 1512. EXTENSION AND EXPANSION OF QUALIFIED 
ZONE ACADEMY BONDS. 
(a) IN GENERAL.—Section 54E(c)(1) is amended by 
striking ‘‘and 2009’’ and inserting ‘‘and $1,400,000,000 
for 2009 and 2010’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to obligations issued after Decem-
ber 31, 2008. 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
PART III—TAXABLE BOND OPTION FOR 
GOVERNMENTAL BONDS 
SEC. 1521. TAXABLE BOND OPTION FOR GOVERNMENTAL 
BONDS. 
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 1 is amended by adding at the end the following new 
subpart: 
‘‘Subpart J—Taxable Bond Option for Governmental 
Bonds 
‘‘Sec. 54AA. Taxable bond option for governmental bonds. 
‘‘SEC. 54AA. TAXABLE BOND OPTION FOR GOVERNMENTAL 
BONDS. 
‘‘(a) IN GENERAL.—If a taxpayer holds a taxable 
governmental bond on one or more interest payment dates 
of the bond during any taxable year, there shall be allowed 
as a credit against the tax imposed by this chapter for 
the taxable year an amount equal to the sum of the credits 
determined under subsection (b) with respect to such 
dates. 
‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 
determined under this subsection with respect to any in-
terest payment date for a taxable governmental bond is 
35 percent of the amount of interest payable by the issuer 
with respect to such date. 
‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) for any taxable year shall not exceed 
the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this part (other than subpart C and this 
subpart). 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 
credit allowable under subsection (a) exceeds the 
limitation imposed by paragraph (1) for such taxable 
year, such excess shall be carried to the succeeding 
taxable year and added to the credit allowable under 
subsection (a) for such taxable year (determined be-
fore the application of paragraph (1) for such suc-
ceeding taxable year). 
‘‘(d) TAXABLE GOVERNMENTAL BOND.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘taxable governmental bond’ means 
any obligation (other than a private activity bond) 
if— 
‘‘(A) the interest on such obligation would 
(but for this section) be excludable from gross 
income under section 103, and 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
‘‘(B) the issuer makes an irrevocable elec-
tion to have this section apply. 
‘‘(2) APPLICABLE RULES.—For purposes of ap-
plying paragraph (1)— 
‘‘(A) a taxable governmental bond shall not 
be treated as federally guaranteed by reason of 
the credit allowed under subsection (a) or sec-
tion 6431, 
‘‘(B) the yield on a taxable governmental 
bond shall be determined without regard to the 
credit allowed under subsection (a), and 
‘‘(C) a bond shall not be treated as a tax-
able governmental bond if the issue price has 
more than a de minimis amount (determined 
under rules similar to the rules of section 
1273(a)(3)) of premium over the stated prin-
cipal amount of the bond. 
‘‘(e) INTEREST PAYMENT DATE.—For purposes of 
this section, the term ‘interest payment date’ means any 
date on which the holder of record of the taxable govern-
mental bond is entitled to a payment of interest under 
such bond. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) INTEREST ON TAXABLE GOVERNMENTAL 
BONDS
INCLUDIBLE
IN
GROSS
INCOME
FOR
FED-
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
ERAL INCOME TAX PURPOSES.—For purposes of this 
title, interest on any taxable governmental bond 
shall be includible in gross income. 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
similar to the rules of subsections (f), (g), (h), and 
(i) of section 54A shall apply for purposes of the 
credit allowed under subsection (a). 
‘‘(g) SPECIAL RULE FOR QUALIFIED BONDS ISSUED 
BEFORE 2011.—In the case of a qualified bond issued be-
fore January 1, 2011— 
‘‘(1) ISSUER
ALLOWED
REFUNDABLE
CRED-
IT.—In lieu of any credit allowed under this section 
with respect to such bond, the issuer of such bond 
shall be allowed a credit as provided in section 6431. 
‘‘(2) QUALIFIED BOND.—For purposes of this 
subsection, the term ‘qualified bond’ means any tax-
able governmental bond issued as part of an issue 
if— 
‘‘(A) 100 percent of the available project 
proceeds (as defined in section 54A) of such 
issue are to be used for capital expenditures, 
and 
‘‘(B) the issuer makes an irrevocable elec-
tion to have this subsection apply.’’. 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
(b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE 
2011.—Subchapter B of chapter 65 is amended by adding 
at the end the following new section: 
‘‘SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO 
ISSUER. 
‘‘(a) IN GENERAL.—In the case of a qualified bond 
issued before January 1, 2011, the issuer of such bond 
shall be allowed a credit with respect to each interest pay-
ment under such bond which shall be payable by the Sec-
retary as provided in subsection (b). 
‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay 
(contemporaneously with each interest payment date 
under such bond) to the issuer of such bond (or to any 
person who makes such interest payments on behalf of the 
issuer) 35 percent of the interest payable under such bond 
on such date. 
‘‘(c) APPLICATION OF ARBITRAGE RULES.—For pur-
poses of section 148, the yield on a qualified bond shall 
be reduced by the credit allowed under this section. 
‘‘(d) INTEREST PAYMENT DATE.—For purposes of 
this subsection, the term ‘interest payment date’ means 
each date on which interest is payable by the issuer under 
the terms of the bond. 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
‘‘(e) QUALIFIED BOND.—For purposes of this sub-
section, the term ‘qualified bond’ has the meaning given 
such term in section 54AA(h).’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1324(b)(2) of title 31, United 
States Code, is amended by striking ‘‘or 6428’’ and 
inserting ‘‘6428, or 6431,’’. 
(2) Section 54A(c)(1)(B) is amended by strik-
ing ‘‘subpart C’’ and inserting ‘‘subparts C and J’’. 
(3) 
Sections 
54(c)(2), 
1397E(c)(2), 
and 
1400N(l)(3)(B) are each amended by striking ‘‘and 
I’’ and inserting ‘‘, I, and J’’. 
(4) Section 6401(b)(1) is amended by striking 
‘‘and I’’ and inserting ‘‘I, and J’’. 
(5) The table of subparts for part IV of sub-
chapter A of chapter 1 is amended by adding at the 
end the following new item: 
‘‘Subpart J. Taxable bond option for governmental bonds.’’. 
(6) The table of section for subchapter B of 
chapter 65 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 6431. Credit for qualified bonds allowed to issuer on advance basis.’’. 
(d) TRANSITIONAL
COORDINATION
WITH
STATE 
LAW.—Except as otherwise provided by a State after the 
date of the enactment of this Act, the interest on any tax-
able governmental bond (as defined in section 54AA of 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
the Internal Revenue Code of 1986, as added by this sec-
tion) and the amount of any credit determined under such 
section with respect to such bond shall be treated for pur-
poses of the income tax laws of such State as being exempt 
from Federal income tax. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
PART IV—RECOVERY ZONE BONDS 
SEC. 1531. RECOVERY ZONE BONDS. 
(a) IN GENERAL.—Subchapter Y of chapter 1 is 
amended by adding at the end the following new part: 
‘‘PART III—RECOVERY ZONE BONDS 
‘‘Sec. 1400U–1. Allocation of recovery zone bonds. 
‘‘Sec. 1400U–2. Recovery zone economic development bonds. 
‘‘Sec. 1400U–3. Recovery zone facility bonds. 
‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. 
‘‘(a) ALLOCATIONS.— 
‘‘(1) IN GENERAL.—The Secretary shall allo-
cate the national recovery zone economic develop-
ment bond limitation and the national recovery zone 
facility bond limitation among the States in the pro-
portion that each such State’s 2008 State employ-
ment decline bears to the aggregate of the 2008 
State employment declines for all of the States. 
‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For 
purposes of this subsection, the term ‘2008 State 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
employment decline’ means, with respect to any 
State, the excess (if any) of— 
‘‘(A) the number of individuals employed 
in such State determined for December 2007, 
over 
‘‘(B) the number of individuals employed 
in such State determined for December 2008. 
‘‘(3) ALLOCATIONS BY STATES.— 
‘‘(A) IN GENERAL.—Each State with re-
spect to which an allocation is made under 
paragraph (1) shall reallocate such allocation 
among the counties and large municipalities in 
such State in the proportion the each such 
county’s or municipality’s 2008 employment de-
cline bears to the aggregate of the 2008 em-
ployment declines for all the counties and mu-
nicipalities in such State. 
‘‘(B) LARGE
MUNICIPALITIES.—For pur-
poses of subparagraph (A), the term ‘large mu-
nicipality’ means a municipality with a popu-
lation of more than 100,000. 
‘‘(C) DETERMINATION OF LOCAL EMPLOY-
MENT DECLINES.—For purposes of this para-
graph, the employment decline of any munici-
pality or county shall be determined in the 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
‘‘(1) such bond shall be treated as a qualified 
bond for purposes of section 6431, and 
‘‘(2) subsection (b) of such section shall be ap-
plied by substituting ‘40 percent’ for ‘35 percent’. 
‘‘(b) RECOVERY ZONE ECONOMIC DEVELOPMENT 
BOND.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘recovery zone economic development 
bond’ means any taxable governmental bond (as de-
fined in section 54AA(d)) issued before January 1, 
2011, as part of issue if— 
‘‘(A) 100 percent of the available project 
proceeds (as defined in section 54A) of such 
issue are to be used for one or more qualified 
economic development purposes, and 
‘‘(B) the issuer designates such bond for 
purposes of this section. 
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds which may be designated by any issuer under 
paragraph (1) shall not exceed the amount of the re-
covery zone economic development bond limitation 
allocated to such issuer under section 1400U–1. 
‘‘(c) QUALIFIED ECONOMIC DEVELOPMENT PUR-
POSE.—For purposes of this section, the term ‘qualified 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
economic development purpose’ means expenditures for 
purposes of promoting development or other economic ac-
tivity in a recovery zone, including— 
‘‘(1) capital expenditures paid or incurred with 
respect to property located in such zone, 
‘‘(2) expenditures for public infrastructure and 
construction of public facilities, and 
‘‘(3) expenditures for job training and edu-
cational programs. 
‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. 
‘‘(a) IN GENERAL.—For purposes of part IV of sub-
chapter B (relating to tax exemption requirements for 
State and local bonds), the term ‘exempt facility bond’ in-
cludes any recovery zone facility bond. 
‘‘(b) RECOVERY ZONE FACILITY BOND.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘recovery zone facility bond’ means 
any bond issued as part of an issue if— 
‘‘(A) 95 percent or more of the net pro-
ceeds (as defined in section 150(a)(3)) of such 
issue are to be used for recovery zone property, 
‘‘(B) such bond is issued before January 1, 
2011, and 
‘‘(C) the issuer designates such bond for 
purposes of this section. 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES-
IGNATED.—The maximum aggregate face amount of 
bonds which may be designated by any issuer under 
paragraph (1) shall not exceed the amount of recov-
ery zone facility bond limitation allocated to such 
issuer under section 1400U–1. 
‘‘(c) RECOVERY ZONE PROPERTY.—For purposes of 
this section— 
‘‘(1) IN
GENERAL.—The term ‘recovery zone 
property’ means any property to which section 168 
applies (or would apply but for section 179) if— 
‘‘(A) such property was acquired by the 
taxpayer by purchase (as defined in section 
179(d)(2)) after the date on which the designa-
tion of the recovery zone took effect, 
‘‘(B) the original use of which in the recov-
ery zone commences with the taxpayer, and 
‘‘(C) substantially all of the use of which 
is in the recovery zone and is in the active con-
duct of a qualified business by the taxpayer in 
such zone. 
‘‘(2) QUALIFIED BUSINESS.—The term ‘quali-
fied business’ means any trade or business except 
that— 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00054
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
‘‘(A) the rental to others of real property 
located in a recovery zone shall be treated as a 
qualified business only if the property is not 
residential rental property (as defined in section 
168(e)(2)), and 
‘‘(B) such term shall not include any trade 
or business consisting of the operation of any 
facility described in section 144(c)(6)(B). 
‘‘(3) SPECIAL RULES FOR SUBSTANTIAL REN-
OVATIONS AND SALE-LEASEBACK.—Rules similar to 
the rules of subsections (a)(2) and (b) of section 
1397D shall apply for purposes of this subsection. 
‘‘(d) NONAPPLICATION OF CERTAIN RULES.—Sec-
tions 146 (relating to volume cap) and 147(d) (relating 
to acquisition of existing property not permitted) shall not 
apply to any recovery zone facility bond.’’. 
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter Y of chapter 1 of such Code is amended by 
adding at the end the following new item: 
‘‘PART III. RECOVERY ZONE BONDS.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
SEC. 1532. TRIBAL ECONOMIC DEVELOPMENT BONDS. 
(a) IN GENERAL.—Section 7871 is amended by add-
ing at the end the following new subsection: 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
‘‘(f) TRIBAL ECONOMIC DEVELOPMENT BONDS.— 
‘‘(1) ALLOCATION OF LIMITATION.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
allocate the national tribal economic develop-
ment bond limitation among the Indian tribal 
governments in such manner as the Secretary, 
in consultation with the Secretary of the Inte-
rior, determines appropriate. 
‘‘(B) NATIONAL LIMITATION.—There is a 
national tribal economic development bond limi-
tation of $2,000,000,000. 
‘‘(2) BONDS
TREATED
AS
EXEMPT
FROM 
TAX.—In the case of a tribal economic development 
bond— 
‘‘(A) notwithstanding subsection (c), such 
bond shall be treated for purposes of this title 
in the same manner as if such bond were issued 
by a State, and 
‘‘(B) section 146 shall not apply. 
‘‘(3) 
TRIBAL
ECONOMIC
DEVELOPMENT 
BOND.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the term ‘tribal economic development 
bond’ means any bond issued by an Indian trib-
al government— 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00056
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
‘‘(i) the interest on which is not ex-
empt from tax under section 103 by reason 
of subsection (c) (determined without re-
gard to this subsection) but would be so 
exempt if issued by a State or local govern-
ment, and 
‘‘(ii) which is designated by the In-
dian tribal government as a tribal eco-
nomic development bond for purposes of 
this subsection. 
‘‘(B) EXCEPTIONS.—The term tribal eco-
nomic development bond shall not include any 
bond issued as part of an issue if any portion 
of the proceeds of such issue are used to fi-
nance— 
‘‘(i) any portion of a building in which 
class II or class III gaming (as defined in 
section 4 of the Indian Gaming Regulatory 
Act) is conducted or housed or any other 
property actually used in the conduct of 
such gaming, or 
‘‘(ii) any facility located outside the 
Indian reservation (as defined in section 
168(j)(6)). 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00057
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS
304 
(1) 
REGULATIONS; 
EFFECTIVE
DATE.—To 
carry out this section, the Secretary of Health and 
Human Services shall promulgate interim final regu-
lations by not later than the date that is 180 days 
after the date of the enactment of this section. The 
provisions of this section shall apply to breaches of 
security that are discovered on or after the date that 
is 30 days after the date of publication of such in-
terim final regulations. 
(2) SUNSET.—The provisions of this section 
shall not apply to breaches of security occurring on 
or after the earlier of the following the dates: 
(A) The date on which a standard relating 
to requirements for entities that are not covered 
entities that includes requirements relating to 
breach notification has been promulgated by the 
Secretary. 
(B) The date on which a standard relating 
to requirements for entities that are not covered 
entities that includes requirements relating to 
breach notification has been promulgated by the 
Federal Trade Commission and has taken ef-
fect. 
VerDate Nov 24 2008 
22:53 Jan 28, 2009
Jkt 079200
PO 00000
Frm 00304
Fmt 6652
Sfmt 6201
E:\BILLS\H598.IH
H598
pwalker on PROD1PC71 with BILLS