H. R. 1—155 
(i) the communication is made by a business asso-
ciate on behalf of the covered entity; and 
(ii) the communication is consistent with the writ-
ten contract (or other written arrangement described 
in section 164.502(e)(2) of such title) between such 
business associate and covered entity. 
(3) REASONABLE
IN
AMOUNT
DEFINED.—For purposes of 
paragraph (2), the term ‘‘reasonable in amount’’ shall have 
the meaning given such term by the Secretary by regulation. 
(4) DIRECT OR INDIRECT PAYMENT.—For purposes of para-
graph (2), the term ‘‘direct or indirect payment’’ shall not 
include any payment for treatment (as defined in section 
164.501 of title 45, Code of Federal Regulations) of an indi-
vidual. 
(b) OPPORTUNITY TO OPT OUT OF FUNDRAISING.—The Secretary 
shall by rule provide that any written fundraising communication 
that is a healthcare operation as defined under section 164.501 
of title 45, Code of Federal Regulations, shall, in a clear and 
conspicuous manner, provide an opportunity for the recipient of 
the communications to elect not to receive any further such commu-
nication. When an individual elects not to receive any further 
such communication, such election shall be treated as a revocation 
of authorization under section 164.508 of title 45, Code of Federal 
Regulations. 
(c) EFFECTIVE DATE.—This section shall apply to written 
communications occurring on or after the effective date specified 
under section 13423. 
SEC. 13407. TEMPORARY BREACH NOTIFICATION REQUIREMENT FOR 
VENDORS OF PERSONAL HEALTH RECORDS AND OTHER 
NON-HIPAA COVERED ENTITIES. 
(a) IN GENERAL.—In accordance with subsection (c), each vendor 
of personal health records, following the discovery of a breach 
of security of unsecured PHR identifiable health information that 
is in a personal health record maintained or offered by such vendor, 
and each entity described in clause (ii), (iii), or (iv) of section 
13424(b)(1)(A), following the discovery of a breach of security of 
such information that is obtained through a product or service 
provided by such entity, shall— 
(1) notify each individual who is a citizen or resident of 
the United States whose unsecured PHR identifiable health 
information was acquired by an unauthorized person as a result 
of such a breach of security; and 
(2) notify the Federal Trade Commission. 
(b) NOTIFICATION BY THIRD PARTY SERVICE PROVIDERS.—A third 
party service provider that provides services to a vendor of personal 
health records or to an entity described in clause (ii), (iii). or 
(iv) of section 13424(b)(1)(A) in connection with the offering or 
maintenance of a personal health record or a related product or 
service and that accesses, maintains, retains, modifies, records, 
stores, destroys, or otherwise holds, uses, or discloses unsecured 
PHR identifiable health information in such a record as a result 
of such services shall, following the discovery of a breach of security 
of such information, notify such vendor or entity, respectively, of 
such breach. Such notice shall include the identification of each 
individual whose unsecured PHR identifiable health information
H. R. 1—156 
has been, or is reasonably believed to have been, accessed, acquired, 
or disclosed during such breach. 
(c) APPLICATION OF REQUIREMENTS FOR TIMELINESS, METHOD, 
AND CONTENT OF NOTIFICATIONS.—Subsections (c), (d), (e), and (f) 
of section 13402 shall apply to a notification required under sub-
section (a) and a vendor of personal health records, an entity 
described in subsection (a) and a third party service provider 
described in subsection (b), with respect to a breach of security 
under subsection (a) of unsecured PHR identifiable health informa-
tion in such records maintained or offered by such vendor, in 
a manner specified by the Federal Trade Commission. 
(d) NOTIFICATION
OF
THE
SECRETARY.—Upon receipt of a 
notification of a breach of security under subsection (a)(2), the 
Federal Trade Commission shall notify the Secretary of such breach. 
(e) ENFORCEMENT.—A violation of subsection (a) or (b) shall 
be treated as an unfair and deceptive act or practice in violation 
of a regulation under section 18(a)(1)(B) of the Federal Trade 
Commission Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or decep-
tive acts or practices. 
(f) DEFINITIONS.—For purposes of this section: 
(1) BREACH OF SECURITY.—The term ‘‘breach of security’’ 
means, with respect to unsecured PHR identifiable health 
information of an individual in a personal health record, 
acquisition of such information without the authorization of 
the individual. 
(2) PHR IDENTIFIABLE
HEALTH
INFORMATION.—The term 
‘‘PHR identifiable health information’’ means individually 
identifiable health information, as defined in section 1171(6) 
of the Social Security Act (42 U.S.C. 1320d(6)), and includes, 
with respect to an individual, information— 
(A) that is provided by or on behalf of the individual; 
and 
(B) that identifies the individual or with respect to 
which there is a reasonable basis to believe that the 
information can be used to identify the individual. 
(3) UNSECURED PHR IDENTIFIABLE HEALTH INFORMATION.— 
(A) IN
GENERAL.—Subject to subparagraph (B), the 
term ‘‘unsecured PHR identifiable health information’’ 
means PHR identifiable health information that is not 
protected through the use of a technology or methodology 
specified by the Secretary in the guidance issued under 
section 13402(h)(2). 
(B) EXCEPTION IN CASE TIMELY GUIDANCE NOT ISSUED.— 
In the case that the Secretary does not issue guidance 
under section 13402(h)(2) by the date specified in such 
section, for purposes of this section, the term ‘‘unsecured 
PHR identifiable health information’’ shall mean PHR 
identifiable health information that is not secured by a 
technology standard that renders protected health informa-
tion unusable, unreadable, or indecipherable to unauthor-
ized individuals and that is developed or endorsed by a 
standards developing organization that is accredited by 
the American National Standards Institute. 
(g) REGULATIONS; EFFECTIVE DATE; SUNSET.— 
(1) REGULATIONS; EFFECTIVE DATE.—To carry out this sec-
tion, the Federal Trade Commission shall promulgate interim 
final regulations by not later than the date that is 180 days
H. R. 1—157 
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 interim final regulations. 
(2) SUNSET.—If Congress enacts new legislation estab-
lishing requirements for notification in the case of a breach 
of security, that apply to entities that are not covered entities 
or business associates, the provisions of this section shall not 
apply to breaches of security discovered on or after the effective 
date of regulations implementing such legislation. 
SEC. 13408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CER-
TAIN ENTITIES. 
Each organization, with respect to a covered entity, that pro-
vides data transmission of protected health information to such 
entity (or its business associate) and that requires access on a 
routine basis to such protected health information, such as a Health 
Information Exchange Organization, Regional Health Information 
Organization, E-prescribing Gateway, or each vendor that contracts 
with a covered entity to allow that covered entity to offer a personal 
health record to patients as part of its electronic health record, 
is required to enter into a written contract (or other written arrange-
ment) described in section 164.502(e)(2) of title 45, Code of Federal 
Regulations and a written contract (or other arrangement) described 
in section 164.308(b) of such title, with such entity and shall be 
treated as a business associate of the covered entity for purposes 
of the provisions of this subtitle and subparts C and E of part 
164 of title 45, Code of Federal Regulations, as such provisions 
are in effect as of the date of enactment of this title. 
SEC. 13409. CLARIFICATION OF APPLICATION OF WRONGFUL DISCLO-
SURES CRIMINAL PENALTIES. 
Section 1177(a) of the Social Security Act (42 U.S.C. 1320d– 
6(a)) is amended by adding at the end the following new sentence: 
‘‘For purposes of the previous sentence, a person (including an 
employee or other individual) shall be considered to have obtained 
or disclosed individually identifiable health information in violation 
of this part if the information is maintained by a covered entity 
(as defined in the HIPAA privacy regulation described in section 
1180(b)(3)) and the individual obtained or disclosed such informa-
tion without authorization.’’. 
SEC. 13410. IMPROVED ENFORCEMENT. 
(a) IN GENERAL.— 
(1) NONCOMPLIANCE DUE TO WILLFUL NEGLECT.—Section 
1176 of the Social Security Act (42 U.S.C. 1320d–5) is 
amended— 
(A) in subsection (b)(1), by striking ‘‘the act constitutes 
an offense punishable under section 1177’’ and inserting 
‘‘a penalty has been imposed under section 1177 with 
respect to such act’’; and 
(B) by adding at the end the following new subsection: 
‘‘(c) NONCOMPLIANCE DUE TO WILLFUL NEGLECT.— 
‘‘(1) IN GENERAL.—A violation of a provision of this part 
due to willful neglect is a violation for which the Secretary 
is required to impose a penalty under subsection (a)(1). 
‘‘(2) REQUIRED INVESTIGATION.—For purposes of paragraph 
(1), the Secretary shall formally investigate any complaint of
H. R. 1—158 
a violation of a provision of this part if a preliminary investiga-
tion of the facts of the complaint indicate such a possible 
violation due to willful neglect.’’. 
(2) ENFORCEMENT UNDER SOCIAL SECURITY ACT.—Any viola-
tion by a covered entity under thus subtitle is subject to enforce-
ment and penalties under section 1176 and 1177 of the Social 
Security Act. 
(b) EFFECTIVE DATE; REGULATIONS.— 
(1) The amendments made by subsection (a) shall apply 
to penalties imposed on or after the date that is 24 months 
after the date of the enactment of this title. 
(2) Not later than 18 months after the date of the enact-
ment of this title, the Secretary of Health and Human Services 
shall promulgate regulations to implement such amendments. 
(c) DISTRIBUTION OF CERTAIN CIVIL MONETARY PENALTIES COL-
LECTED.— 
(1) IN GENERAL.—Subject to the regulation promulgated 
pursuant to paragraph (3), any civil monetary penalty or mone-
tary settlement collected with respect to an offense punishable 
under this subtitle or section 1176 of the Social Security Act 
(42 U.S.C. 1320d–5) insofar as such section relates to privacy 
or security shall be transferred to the Office for Civil Rights 
of the Department of Health and Human Services to be used 
for purposes of enforcing the provisions of this subtitle and 
subparts C and E of part 164 of title 45, Code of Federal 
Regulations, as such provisions are in effect as of the date 
of enactment of this Act. 
(2) GAO REPORT.—Not later than 18 months after the 
date of the enactment of this title, the Comptroller General 
shall submit to the Secretary a report including recommenda-
tions for a methodology under which an individual who is 
harmed by an act that constitutes an offense referred to in 
paragraph (1) may receive a percentage of any civil monetary 
penalty or monetary settlement collected with respect to such 
offense. 
(3) ESTABLISHMENT
OF
METHODOLOGY
TO
DISTRIBUTE 
PERCENTAGE OF CMPS COLLECTED TO HARMED INDIVIDUALS.— 
Not later than 3 years after the date of the enactment of 
this title, the Secretary shall establish by regulation and based 
on the recommendations submitted under paragraph (2), a 
methodology under which an individual who is harmed by 
an act that constitutes an offense referred to in paragraph 
(1) may receive a percentage of any civil monetary penalty 
or monetary settlement collected with respect to such offense. 
(4) APPLICATION
OF
METHODOLOGY.—The methodology 
under paragraph (3) shall be applied with respect to civil mone-
tary penalties or monetary settlements imposed on or after 
the effective date of the regulation. 
(d) TIERED INCREASE IN AMOUNT OF CIVIL MONETARY PEN-
ALTIES.— 
(1) IN GENERAL.—Section 1176(a)(1) of the Social Security 
Act (42 U.S.C. 1320d–5(a)(1)) is amended by striking ‘‘who 
violates a provision of this part a penalty of not more than’’ 
and all that follows and inserting the following: ‘‘who violates 
a provision of this part— 
‘‘(A) in the case of a violation of such provision in 
which it is established that the person did not know (and
H. R. 1—159 
by exercising reasonable diligence would not have known) 
that such person violated such provision, a penalty for 
each such violation of an amount that is at least the 
amount described in paragraph (3)(A) but not to exceed 
the amount described in paragraph (3)(D); 
‘‘(B) in the case of a violation of such provision in 
which it is established that the violation was due to reason-
able cause and not to willful neglect, a penalty for each 
such violation of an amount that is at least the amount 
described in paragraph (3)(B) but not to exceed the amount 
described in paragraph (3)(D); and 
‘‘(C) in the case of a violation of such provision in 
which it is established that the violation was due to willful 
neglect— 
‘‘(i) if the violation is corrected as described in 
subsection (b)(3)(A), a penalty in an amount that is 
at least the amount described in paragraph (3)(C) but 
not to exceed the amount described in paragraph (3)(D); 
and 
‘‘(ii) if the violation is not corrected as described 
in such subsection, a penalty in an amount that is 
at least the amount described in paragraph (3)(D). 
In determining the amount of a penalty under this section 
for a violation, the Secretary shall base such determination 
on the nature and extent of the violation and the nature 
and extent of the harm resulting from such violation.’’. 
(2) TIERS
OF
PENALTIES
DESCRIBED.—Section 1176(a) of 
such Act (42 U.S.C. 1320d–5(a)) is further amended by adding 
at the end the following new paragraph: 
‘‘(3) TIERS OF PENALTIES DESCRIBED.—For purposes of para-
graph (1), with respect to a violation by a person of a provision 
of this part— 
‘‘(A) the amount described in this subparagraph is 
$100 for each such violation, except that the total amount 
imposed on the person for all such violations of an identical 
requirement or prohibition during a calendar year may 
not exceed $25,000; 
‘‘(B) the amount described in this subparagraph is 
$1,000 for each such violation, except that the total amount 
imposed on the person for all such violations of an identical 
requirement or prohibition during a calendar year may 
not exceed $100,000; 
‘‘(C) the amount described in this subparagraph is 
$10,000 for each such violation, except that the total 
amount imposed on the person for all such violations of 
an identical requirement or prohibition during a calendar 
year may not exceed $250,000; and 
‘‘(D) the amount described in this subparagraph is 
$50,000 for each such violation, except that the total 
amount imposed on the person for all such violations of 
an identical requirement or prohibition during a calendar 
year may not exceed $1,500,000.’’. 
(3) CONFORMING
AMENDMENTS.—Section 1176(b) of such 
Act (42 U.S.C. 1320d–5(b)) is amended— 
(A) by striking paragraph (2) and redesignating para-
graphs (3) and (4) as paragraphs (2) and (3), respectively; 
and
H. R. 1—160 
(B) in paragraph (2), as so redesignated— 
(i) in subparagraph (A), by striking ‘‘in subpara-
graph (B), a penalty may not be imposed under sub-
section (a) if’’ and all that follows through ‘‘the failure 
to comply is corrected’’ and inserting ‘‘in subparagraph 
(B) or subsection (a)(1)(C), a penalty may not be 
imposed under subsection (a) if the failure to comply 
is corrected’’; and 
(ii) in subparagraph (B), by striking ‘‘(A)(ii)’’ and 
inserting ‘‘(A)’’ each place it appears. 
(4) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to violations occurring after the date of 
the enactment of this title. 
(e) ENFORCEMENT THROUGH STATE ATTORNEYS GENERAL.— 
(1) IN GENERAL.—Section 1176 of the Social Security Act 
(42 U.S.C. 1320d–5) is amended by adding at the end the 
following new subsection: 
‘‘(d) ENFORCEMENT BY STATE ATTORNEYS GENERAL.— 
‘‘(1) CIVIL ACTION.—Except as provided in subsection (b), 
in any case in which the attorney general of a State has 
reason to believe that an interest of one or more of the residents 
of that State has been or is threatened or adversely affected 
by any person who violates a provision of this part, the attorney 
general of the State, as parens patriae, may bring a civil 
action on behalf of such residents of the State in a district 
court of the United States of appropriate jurisdiction— 
‘‘(A) to enjoin further such violation by the defendant; 
or 
‘‘(B) to obtain damages on behalf of such residents 
of the State, in an amount equal to the amount determined 
under paragraph (2). 
‘‘(2) STATUTORY DAMAGES.— 
‘‘(A) IN GENERAL.—For purposes of paragraph (1)(B), 
the amount determined under this paragraph is the amount 
calculated by multiplying the number of violations by up 
to $100. For purposes of the preceding sentence, in the 
case of a continuing violation, the number of violations 
shall be determined consistent with the HIPAA privacy 
regulations (as defined in section 1180(b)(3)) for violations 
of subsection (a). 
‘‘(B) LIMITATION.—The total amount of damages 
imposed on the person for all violations of an identical 
requirement or prohibition during a calendar year may 
not exceed $25,000. 
‘‘(C) REDUCTION OF DAMAGES.—In assessing damages 
under subparagraph (A), the court may consider the factors 
the Secretary may consider in determining the amount 
of a civil money penalty under subsection (a) under the 
HIPAA privacy regulations. 
‘‘(3) ATTORNEY FEES.—In the case of any successful action 
under paragraph (1), the court, in its discretion, may award 
the costs of the action and reasonable attorney fees to the 
State. 
‘‘(4) NOTICE TO SECRETARY.—The State shall serve prior 
written notice of any action under paragraph (1) upon the 
Secretary and provide the Secretary with a copy of its com-
plaint, except in any case in which such prior notice is not
H. R. 1—161 
feasible, in which case the State shall serve such notice imme-
diately upon instituting such action. The Secretary shall have 
the right— 
‘‘(A) to intervene in the action; 
‘‘(B) upon so intervening, to be heard on all matters 
arising therein; and 
‘‘(C) to file petitions for appeal. 
‘‘(5) CONSTRUCTION.—For purposes of bringing any civil 
action under paragraph (1), nothing in this section shall be 
construed to prevent an attorney general of a State from exer-
cising the powers conferred on the attorney general by the 
laws of that State. 
‘‘(6) VENUE; SERVICE OF PROCESS.— 
‘‘(A) VENUE.—Any action brought under paragraph (1) 
may be brought in the district court of the United States 
that meets applicable requirements relating to venue under 
section 1391 of title 28, United States Code. 
‘‘(B) SERVICE OF PROCESS.—In an action brought under 
paragraph (1), process may be served in any district in 
which the defendant— 
‘‘(i) is an inhabitant; or 
‘‘(ii) maintains a physical place of business. 
‘‘(7) LIMITATION ON STATE ACTION WHILE FEDERAL ACTION 
IS PENDING.—If the Secretary has instituted an action against 
a person under subsection (a) with respect to a specific violation 
of this part, no State attorney general may bring an action 
under this subsection against the person with respect to such 
violation during the pendency of that action. 
‘‘(8) APPLICATION OF CMP STATUTE OF LIMITATION.—A civil 
action may not be instituted with respect to a violation of 
this part unless an action to impose a civil money penalty 
may be instituted under subsection (a) with respect to such 
violation consistent with the second sentence of section 
1128A(c)(1).’’. 
(2) CONFORMING AMENDMENTS.—Subsection (b) of such sec-
tion, as amended by subsection (d)(3), is amended— 
(A) in paragraph (1), by striking ‘‘A penalty may not 
be imposed under subsection (a)’’ and inserting ‘‘No penalty 
may be imposed under subsection (a) and no damages 
obtained under subsection (d)’’; 
(B) in paragraph (2)(A)— 
(i) after ‘‘subsection (a)(1)(C),’’, by striking ‘‘a pen-
alty may not be imposed under subsection (a)’’ and 
inserting ‘‘no penalty may be imposed under subsection 
(a) and no damages obtained under subsection (d)’’; 
and 
(ii) in clause (ii), by inserting ‘‘or damages’’ after 
‘‘the penalty’’; 
(C) in paragraph (2)(B)(i), by striking ‘‘The period’’ 
and inserting ‘‘With respect to the imposition of a penalty 
by the Secretary under subsection (a), the period’’; and 
(D) in paragraph (3), by inserting ‘‘and any damages 
under subsection (d)’’ after ‘‘any penalty under subsection 
(a)’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to violations occurring after the date of 
the enactment of this Act.
H. R. 1—162 
(f) ALLOWING CONTINUED USE OF CORRECTIVE ACTION.—Such 
section is further amended by adding at the end the following 
new subsection: 
‘‘(e) ALLOWING CONTINUED USE
OF CORRECTIVE ACTION.— 
Nothing in this section shall be construed as preventing the Office 
for Civil Rights of the Department of Health and Human Services 
from continuing, in its discretion, to use corrective action without 
a penalty in cases where the person did not know (and by exercising 
reasonable diligence would not have known) of the violation 
involved.’’. 
SEC. 13411. AUDITS. 
The Secretary shall provide for periodic audits to ensure that 
covered entities and business associates that are subject to the 
requirements of this subtitle and subparts C and E of part 164 
of title 45, Code of Federal Regulations, as such provisions are 
in effect as of the date of enactment of this Act, comply with 
such requirements. 
PART 2—RELATIONSHIP TO OTHER LAWS; 
REGULATORY 
REFERENCES; 
EFFECTIVE 
DATE; REPORTS 
SEC. 13421. RELATIONSHIP TO OTHER LAWS. 
(a) APPLICATION OF HIPAA STATE PREEMPTION.—Section 1178 
of the Social Security Act (42 U.S.C. 1320d–7) shall apply to a 
provision or requirement under this subtitle in the same manner 
that such section applies to a provision or requirement under part 
C of title XI of such Act or a standard or implementation specifica-
tion adopted or established under sections 1172 through 1174 of 
such Act. 
(b) HEALTH
INSURANCE
PORTABILITY
AND
ACCOUNTABILITY 
ACT.—The standards governing the privacy and security of individ-
ually identifiable health information promulgated by the Secretary 
under sections 262(a) and 264 of the Health Insurance Portability 
and Accountability Act of 1996 shall remain in effect to the extent 
that they are consistent with this subtitle. The Secretary shall 
by rule amend such Federal regulations as required to make such 
regulations consistent with this subtitle. 
(c) CONSTRUCTION.—Nothing in this subtitle shall constitute 
a waiver of any privilege otherwise applicable to an individual 
with respect to the protected health information of such individual. 
SEC. 13422. REGULATORY REFERENCES. 
Each reference in this subtitle to a provision of the Code of 
Federal Regulations refers to such provision as in effect on the 
date of the enactment of this title (or to the most recent update 
of such provision). 
SEC. 13423. EFFECTIVE DATE. 
Except as otherwise specifically provided, the provisions of part 
I shall take effect on the date that is 12 months after the date 
of the enactment of this title. 
SEC. 13424. STUDIES, REPORTS, GUIDANCE. 
(a) REPORT ON COMPLIANCE.—
H. R. 1—163 
(1) IN GENERAL.—For the first year beginning after the 
date of the enactment of this Act and annually thereafter, 
the Secretary shall prepare and submit to the Committee on 
Health, Education, Labor, and Pensions of the Senate and 
the Committee on Ways and Means and the Committee on 
Energy and Commerce of the House of Representatives a report 
concerning complaints of alleged violations of law, including 
the provisions of this subtitle as well as the provisions of 
subparts C and E of part 164 of title 45, Code of Federal 
Regulations, (as such provisions are in effect as of the date 
of enactment of this Act) relating to privacy and security of 
health information that are received by the Secretary during 
the year for which the report is being prepared. Each such 
report shall include, with respect to such complaints received 
during the year— 
(A) the number of such complaints; 
(B) the number of such complaints resolved informally, 
a summary of the types of such complaints so resolved, 
and the number of covered entities that received technical 
assistance from the Secretary during such year in order 
to achieve compliance with such provisions and the types 
of such technical assistance provided; 
(C) the number of such complaints that have resulted 
in the imposition of civil monetary penalties or have been 
resolved through monetary settlements, including the 
nature of the complaints involved and the amount paid 
in each penalty or settlement; 
(D) the number of compliance reviews conducted and 
the outcome of each such review; 
(E) the number of subpoenas or inquiries issued; 
(F) the Secretary’s plan for improving compliance with 
and enforcement of such provisions for the following year; 
and 
(G) the number of audits performed and a summary 
of audit findings pursuant to section 13411. 
(2) AVAILABILITY TO PUBLIC.—Each report under paragraph 
(1) shall be made available to the public on the Internet website 
of the Department of Health and Human Services. 
(b) STUDY AND REPORT ON APPLICATION OF PRIVACY AND SECU-
RITY REQUIREMENTS TO NON-HIPAA COVERED ENTITIES.— 
(1) STUDY.—Not later than one year after the date of the 
enactment of this title, the Secretary, in consultation with 
the Federal Trade Commission, shall conduct a study, and 
submit a report under paragraph (2), on privacy and security 
requirements for entities that are not covered entities or busi-
ness associates as of the date of the enactment of this title, 
including— 
(A) requirements relating to security, privacy, and 
notification in the case of a breach of security or privacy 
(including the applicability of an exemption to notification 
in the case of individually identifiable health information 
that has been rendered unusable, unreadable, or indeci-
pherable through technologies or methodologies recognized 
by appropriate professional organization or standard set-
ting bodies to provide effective security for the information) 
that should be applied to— 
(i) vendors of personal health records;
H. R. 1—164 
(ii) entities that offer products or services through 
the website of a vendor of personal health records; 
(iii) entities that are not covered entities and that 
offer products or services through the websites of cov-
ered entities that offer individuals personal health 
records; 
(iv) entities that are not covered entities and that 
access information in a personal health record or send 
information to a personal health record; and 
(v) third party service providers used by a vendor 
or entity described in clause (i), (ii), (iii), or (iv) to 
assist in providing personal health record products or 
services; 
(B) a determination of which Federal government 
agency is best equipped to enforce such requirements rec-
ommended to be applied to such vendors, entities, and 
service providers under subparagraph (A); and 
(C) a timeframe for implementing regulations based 
on such findings. 
(2) REPORT.—The Secretary shall submit to the Committee 
on Finance, the Committee on Health, Education, Labor, and 
Pensions, and the Committee on Commerce of the Senate and 
the Committee on Ways and Means and the Committee on 
Energy and Commerce of the House of Representatives a report 
on the findings of the study under paragraph (1) and shall 
include in such report recommendations on the privacy and 
security requirements described in such paragraph. 
(c) GUIDANCE ON IMPLEMENTATION SPECIFICATION TO DE-IDEN-
TIFY PROTECTED HEALTH INFORMATION.—Not later than 12 months 
after the date of the enactment of this title, the Secretary shall, 
in consultation with stakeholders, issue guidance on how best to 
implement the requirements for the de-identification of protected 
health information under section 164.514(b) of title 45, Code of 
Federal Regulations. 
(d) GAO REPORT ON TREATMENT DISCLOSURES.—Not later than 
one year after the date of the enactment of this title, the Comptroller 
General of the United States shall submit to the Committee on 
Health, Education, Labor, and Pensions of the Senate and the 
Committee on Ways and Means and the Committee on Energy 
and Commerce of the House of Representatives a report on the 
best practices related to the disclosure among health care providers 
of protected health information of an individual for purposes of 
treatment of such individual. Such report shall include an examina-
tion of the best practices implemented by States and by other 
entities, such as health information exchanges and regional health 
information organizations, an examination of the extent to which 
such best practices are successful with respect to the quality of 
the resulting health care provided to the individual and with respect 
to the ability of the health care provider to manage such best 
practices, and an examination of the use of electronic informed 
consent for disclosing protected health information for treatment, 
payment, and health care operations. 
(e) REPORT REQUIRED.—Not later than 5 years after the date 
of enactment of this section, the Government Accountability Office 
shall submit to Congress and the Secretary of Health and Human 
Services a report on the impact of any of the provisions of this
H. R. 1—165 
Act on health insurance premiums, overall health care costs, adop-
tion of electronic health records by providers, and reduction in 
medical errors and other quality improvements. 
(f) STUDY.—The Secretary shall study the definition of ‘‘psycho-
therapy notes’’ in section 164.501 of title 45, Code of Federal Regula-
tions, with regard to including test data that is related to direct 
responses, scores, items, forms, protocols, manuals, or other mate-
rials that are part of a mental health evaluation, as determined 
by the mental health professional providing treatment or evaluation 
in such definitions and may, based on such study, issue regulations 
to revise such definition. 
TITLE XIV—STATE FISCAL 
STABILIZATION FUND 
DEPARTMENT OF EDUCATION 
STATE FISCAL STABILIZATION FUND 
For necessary expenses for a State Fiscal Stabilization Fund, 
$53,600,000,000, which shall be administered by the Department 
of Education. 
GENERAL PROVISIONS—THIS TITLE 
SEC. 14001. ALLOCATIONS. 
(a) OUTLYING AREAS.—From the amount appropriated to carry 
out this title, the Secretary of Education shall first allocate up 
to one-half of 1 percent to the outlying areas on the basis of 
their respective needs, as determined by the Secretary, in consulta-
tion with the Secretary of the Interior, for activities consistent 
with this title under such terms and conditions as the Secretary 
may determine. 
(b) ADMINISTRATION AND OVERSIGHT.—The Secretary may, in 
addition, reserve up to $14,000,000 for administration and oversight 
of this title, including for program evaluation. 
(c) RESERVATION FOR ADDITIONAL PROGRAMS.—After reserving 
funds under subsections (a) and (b), the Secretary shall reserve 
$5,000,000,000 for grants under sections 14006 and 14007. 
(d) STATE ALLOCATIONS.—After carrying out subsections (a), 
(b), and (c), the Secretary shall allocate the remaining funds made 
available to carry out this title to the States as follows: 
(1) 61 percent on the basis of their relative population 
of individuals aged 5 through 24. 
(2) 39 percent on the basis of their relative total population. 
(e) STATE GRANTS.—From funds allocated under subsection (d), 
the Secretary shall make grants to the Governor of each State. 
(f) REALLOCATION.—The Governor shall return to the Secretary 
any funds received under subsection (e) that the Governor does 
not award as subgrants or otherwise commit within two years 
of receiving such funds, and the Secretary shall reallocate such 
funds to the remaining States in accordance with subsection (d). 
SEC. 14002. STATE USES OF FUNDS. 
(a) EDUCATION FUND.—
H. R. 1—166 
(1) IN GENERAL.—For each fiscal year, the Governor shall 
use 81.8 percent of the State’s allocation under section 14001(d) 
for the support of elementary, secondary, and postsecondary 
education and, as applicable, early childhood education pro-
grams and services. 
(2) RESTORING STATE SUPPORT FOR EDUCATION.— 
(A) IN
GENERAL.—The Governor shall first use the 
funds described in paragraph (1)— 
(i) to provide the amount of funds, through the 
State’s primary elementary and secondary funding for-
mulae, that is needed— 
(I) to restore, in each of fiscal years 2009, 
2010, and 2011, the level of State support provided 
through such formulae to the greater of the fiscal 
year 2008 or fiscal year 2009 level; and 
(II) where applicable, to allow existing State 
formulae increases to support elementary and sec-
ondary education for fiscal years 2010 and 2011 
to be implemented and allow funding for phasing 
in State equity and adequacy adjustments, if such 
increases were enacted pursuant to State law prior 
to October 1, 2008. 
(ii) to provide, in each of fiscal years 2009, 2010, 
and 2011, the amount of funds to public institutions 
of higher education in the State that is needed to 
restore State support for such institutions (excluding 
tuition and fees paid by students) to the greater of 
the fiscal year 2008 or fiscal year 2009 level. 
(B) SHORTFALL.—If the Governor determines that the 
amount of funds available under paragraph (1) is insuffi-
cient to support, in each of fiscal years 2009, 2010, and 
2011, public elementary, secondary, and higher education 
at the levels described in clauses (i) and (ii) of subparagraph 
(A), the Governor shall allocate those funds between those 
clauses in proportion to the relative shortfall in State sup-
port for the education sectors described in those clauses. 
(C) FISCAL YEAR.—For purposes of this paragraph, the 
term ‘‘fiscal year’’ shall have the meaning given such term 
under State law. 
(3) SUBGRANTS TO IMPROVE BASIC PROGRAMS OPERATED BY 
LOCAL EDUCATIONAL AGENCIES.—After carrying out paragraph 
(2), the Governor shall use any funds remaining under para-
graph (1) to provide local educational agencies in the State 
with subgrants based on their relative shares of funding under 
part A of title I of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 6311 et seq.) for the most recent year 
for which data are available. 
(b) OTHER GOVERNMENT SERVICES.— 
(1) IN GENERAL.—The Governor shall use 18.2 percent of 
the State’s allocation under section 14001 for public safety 
and other government services, which may include assistance 
for elementary and secondary education and public institutions 
of higher education, and for modernization, renovation, or 
repair of public school facilities and institutions of higher edu-
cation facilities, including modernization, renovation, and 
repairs that are consistent with a recognized green building 
rating system.
H. R. 1—167 
(2) AVAILABILITY
TO
ALL
INSTITUTIONS
OF
HIGHER
EDU-
CATION.—A Governor shall not consider the type or mission 
of an institution of higher education, and shall consider any 
institution for funding for modernization, renovation, and 
repairs within the State that— 
(A) qualifies as an institution of higher education, as 
defined in subsection 14013(3); and 
(B) continues to be eligible to participate in the pro-
grams under title IV of the Higher Education Act of 1965. 
(c) RULE OF CONSTRUCTION.—Nothing in this section shall allow 
a local educational agency to engage in school modernization, ren-
ovation, or repair that is inconsistent with State law. 
SEC. 14003. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES. 
(a) IN GENERAL.—A local educational agency that receives funds 
under this title may use the funds for any activity authorized 
by the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
6301 et seq.) (‘‘ESEA’’), the Individuals with Disabilities Education 
Act (20 U.S.C. 1400 et seq.) (‘‘IDEA’’), the Adult and Family Literacy 
Act (20 U.S.C. 1400 et seq.), or the Carl D. Perkins Career and 
Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) (‘‘the 
Perkins Act’’) or for modernization, renovation, or repair of public 
school facilities, including modernization, renovation, and repairs 
that are consistent with a recognized green building rating system. 
(b) PROHIBITION.—A local educational agency may not use funds 
received under this title for— 
(1) payment of maintenance costs; 
(2) stadiums or other facilities primarily used for athletic 
contests or exhibitions or other events for which admission 
is charged to the general public; 
(3) purchase or upgrade of vehicles; or 
(4) improvement of stand-alone facilities whose purpose 
is not the education of children, including central office adminis-
tration or operations or logistical support facilities. 
(c) RULE OF CONSTRUCTION.—Nothing in this section shall allow 
a local educational agency to engage in school modernization, ren-
ovation, or repair that is inconsistent with State law. 
SEC. 14004. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION. 
(a) IN GENERAL.—A public institution of higher education that 
receives funds under this title shall use the funds for education 
and general expenditures, and in such a way as to mitigate the 
need to raise tuition and fees for in-State students, or for moderniza-
tion, renovation, or repair of institution of higher education facilities 
that are primarily used for instruction, research, or student housing, 
including modernization, renovation, and repairs that are consistent 
with a recognized green building rating system. 
(b) PROHIBITION.—An institution of higher education may not 
use funds received under this title to increase its endowment. 
(c) ADDITIONAL PROHIBITION.—No funds awarded under this 
title may be used for— 
(1) the maintenance of systems, equipment, or facilities; 
(2) modernization, renovation, or repair of stadiums or 
other facilities primarily used for athletic contests or exhibitions 
or other events for which admission is charged to the general 
public; or 
(3) modernization, renovation, or repair of facilities—
H. R. 1—168 
(A) used for sectarian instruction or religious worship; 
or 
(B) in which a substantial portion of the functions 
of the facilities are subsumed in a religious mission. 
SEC. 14005. STATE APPLICATIONS. 
(a) IN GENERAL.—The Governor of a State desiring to receive 
an allocation under section 14001 shall submit an application at 
such time, in such manner, and containing such information as 
the Secretary may reasonably require. 
(b) APPLICATION.—In such application, the Governor shall— 
(1) include the assurances described in subsection (d); 
(2) provide baseline data that demonstrates the State’s 
current status in each of the areas described in such assurances; 
and 
(3) describe how the State intends to use its allocation, 
including whether the State will use such allocation to meet 
maintenance of effort requirements under the ESEA and IDEA 
and, in such cases, what amount will be used to meet such 
requirements. 
(c) INCENTIVE GRANT APPLICATION.—The Governor of a State 
seeking a grant under section 14006 shall— 
(1) submit an application for consideration; 
(2) describe the status of the State’s progress in each of 
the areas described in subsection (d), and the strategies the 
State is employing to help ensure that students in the sub-
groups described in section 1111(b)(2)(C)(v)(II) of the ESEA 
(20 U.S.C. 6311(b)(2)(C)(v)(II)) who have not met the State’s 
proficiency targets continue making progress toward meeting 
the State’s student academic achievement standards; 
(3) describe the achievement and graduation rates (as 
described in section 1111(b)(2)(C)(vi) of the ESEA (20 U.S.C. 
6311(b)(2)(C)(vi)) and as clarified in section 200.19(b)(1) of title 
34, Code of Federal Regulations) of public elementary and 
secondary school students in the State, and the strategies the 
State is employing to help ensure that all subgroups of students 
identified in section 1111(b)(2) of the ESEA (20 U.S.C. 
6311(b)(2)) in the State continue making progress toward 
meeting the State’s student academic achievement standards; 
(4) describe how the State would use its grant funding 
to improve student academic achievement in the State, 
including how it will allocate the funds to give priority to 
high-need local educational agencies; and 
(5) include a plan for evaluating the State’s progress in 
closing achievement gaps. 
(d) ASSURANCES.—An application under subsection (b) shall 
include the following assurances: 
(1) MAINTENANCE OF EFFORT.— 
(A) ELEMENTARY
AND
SECONDARY
EDUCATION.—The 
State will, in each of fiscal years 2009, 2010, and 2011, 
maintain State support for elementary and secondary edu-
cation at least at the level of such support in fiscal year 
2006. 
(B) HIGHER EDUCATION.—The State will, in each of 
fiscal years 2009, 2010, and 2011, maintain State support 
for public institutions of higher education (not including 
support for capital projects or for research and development
H. R. 1—169 
or tuition and fees paid by students) at least at the level 
of such support in fiscal year 2006. 
(2) ACHIEVING
EQUITY
IN
TEACHER
DISTRIBUTION.—The 
State will take actions to improve teacher effectiveness and 
comply with section 1111(b)(8)(C) of the ESEA (20 U.S.C. 
6311(b)(8)(C)) in order to address inequities in the distribution 
of highly qualified teachers between high- and low-poverty 
schools, and to ensure that low-income and minority children 
are not taught at higher rates than other children by inexperi-
enced, unqualified, or out-of-field teachers. 
(3) IMPROVING COLLECTION AND USE OF DATA.—The State 
will establish a longitudinal data system that includes the 
elements described in section 6401(e)(2)(D) of the America 
COMPETES Act (20 U.S.C. 9871). 
(4) STANDARDS AND ASSESSMENTS.—The State— 
(A) will enhance the quality of the academic assess-
ments it administers pursuant to section 1111(b)(3) of the 
ESEA (20 U.S.C. 6311(b)(3)) through activities such as 
those described in section 6112(a) of such Act (20 U.S.C. 
7301a(a)); 
(B) will comply with the requirements of paragraphs 
(3)(C)(ix) and (6) of section 1111(b) of the ESEA (20 U.S.C. 
6311(b)) and section 612(a)(16) of the IDEA (20 U.S.C. 
1412(a)(16)) related to the inclusion of children with disabil-
ities and limited English proficient students in State 
assessments, the development of valid and reliable assess-
ments for those students, and the provision of accommoda-
tions that enable their participation in State assessments; 
and 
(C) will take steps to improve State academic content 
standards and student academic achievement standards 
consistent with section 6401(e)(1)(9)(A)(ii) of the America 
COMPETES Act. 
(5) SUPPORTING
STRUGGLING
SCHOOLS.—The State will 
ensure 
compliance 
with 
the 
requirements 
of 
section 
1116(a)(7)(C)(iv) and section 1116(a)(8)(B) of the ESEA with 
respect to schools identified under such sections. 
SEC. 14006. STATE INCENTIVE GRANTS. 
(a) IN GENERAL.— 
(1) RESERVATION.—From the total amount reserved under 
section 14001(c) that is not used for section 14007, the Secretary 
may reserve up to 1 percent for technical assistance to States 
to assist them in meeting the objectives of paragraphs (2), 
(3), (4), and (5) of section 14005(d). 
(2) REMAINDER.—Of the remaining funds, the Secretary 
shall, in fiscal year 2010, make grants to States that have 
made significant progress in meeting the objectives of para-
graphs (2), (3), (4), and (5) of section 14005(d). 
(b) BASIS FOR GRANTS.—The Secretary shall determine which 
States receive grants under this section, and the amount of those 
grants, on the basis of information provided in State applications 
under section 14005 and such other criteria as the Secretary deter-
mines appropriate, which may include a State’s need for assistance 
to help meet the objective of paragraphs (2), (3), (4), and (5) of 
section 14005(d).
H. R. 1—170 
(c) SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES.—Each State 
receiving a grant under this section shall use at least 50 percent 
of the grant to provide local educational agencies in the State 
with subgrants based on their relative shares of funding under 
part A of title I of the ESEA (20 U.S.C. 6311 et seq.) for the 
most recent year. 
SEC. 14007. INNOVATION FUND. 
(a) IN GENERAL.— 
(1) ELIGIBLE ENTITIES.—For the purposes of this section, 
the term ‘‘eligible entity’’ means— 
(A) a local educational agency; or 
(B) a partnership between a nonprofit organization 
and— 
(i) one or more local educational agencies; or 
(ii) a consortium of schools. 
(2) PROGRAM
ESTABLISHED.—From the total amount 
reserved under section 14001(c), the Secretary may reserve 
up to $650,000,000 to establish an Innovation Fund, which 
shall consist of academic achievement awards that recognize 
eligible entities that meet the requirements described in sub-
section (b). 
(3) BASIS FOR AWARDS.—The Secretary shall make awards 
to eligible entities that have made significant gains in closing 
the achievement gap as described in subsection (b)(1)— 
(A) to allow such eligible entities to expand their work 
and serve as models for best practices; 
(B) to allow such eligible entities to work in partnership 
with the private sector and the philanthropic community; 
and 
(C) to identify and document best practices that can 
be shared, and taken to scale based on demonstrated suc-
cess. 
(b) ELIGIBILITY.—To be eligible for such an award, an eligible 
entity shall— 
(1) have significantly closed the achievement gaps between 
groups of students described in section 1111(b)(2) of the ESEA 
(20 U.S.C. 6311(b)(2)); 
(2) have exceeded the State’s annual measurable objectives 
consistent with such section 1111(b)(2) for 2 or more consecutive 
years or have demonstrated success in significantly increasing 
student academic achievement for all groups of students 
described in such section through another measure, such as 
measures described in section 1111(c)(2) of the ESEA; 
(3) have made significant improvement in other areas, such 
as graduation rates or increased recruitment and placement 
of high-quality teachers and school leaders, as demonstrated 
with meaningful data; and 
(4) demonstrate that they have established partnerships 
with the private sector, which may include philanthropic 
organizations, and that the private sector will provide matching 
funds in order to help bring results to scale. 
(c) SPECIAL RULE.—In the case of an eligible entity that includes 
a nonprofit organization, the eligible entity shall be considered 
to have met the eligibility requirements of paragraphs (1), (2), 
(3) of subsection (b) if such nonprofit organization has a record 
of meeting such requirements.
H. R. 1—171 
SEC. 14008. STATE REPORTS. 
For each year of the program under this title, a State receiving 
funds under this title shall submit a report to the Secretary, at 
such time and in such manner as the Secretary may require, 
that describes— 
(1) the uses of funds provided under this title within the 
State; 
(2) how the State distributed the funds it received under 
this title; 
(3) the number of jobs that the Governor estimates were 
saved or created with funds the State received under this 
title; 
(4) tax increases that the Governor estimates were averted 
because of the availability of funds from this title; 
(5) the State’s progress in reducing inequities in the dis-
tribution of highly qualified teachers, in implementing a State 
longitudinal data system, and in developing and implementing 
valid and reliable assessments for limited English proficient 
students and children with disabilities; 
(6) the tuition and fee increases for in-State students 
imposed by public institutions of higher education in the State 
during the period of availability of funds under this title, and 
a description of any actions taken by the State to limit those 
increases; 
(7) the extent to which public institutions of higher edu-
cation maintained, increased, or decreased enrollment of in- 
State students, including students eligible for Pell Grants or 
other need-based financial assistance; and 
(8) a description of each modernization, renovation and 
repair project funded, which shall include the amounts awarded 
and project costs. 
SEC. 14009. EVALUATION. 
The Comptroller General of the United States shall conduct 
evaluations of the programs under sections 14006 and 14007 which 
shall include, but not be limited to, the criteria used for the awards 
made, the States selected for awards, award amounts, how each 
State used the award received, and the impact of this funding 
on the progress made toward closing achievement gaps. 
SEC. 14010. SECRETARY’S REPORT TO CONGRESS. 
The Secretary shall submit a report to the Committee on Edu-
cation and Labor of the House of Representatives, the Committee 
on Health, Education, Labor, and Pensions of the Senate, and 
the Committees on Appropriations of the House of Representatives 
and of the Senate, not less than 6 months following the submission 
of State reports, that evaluates the information provided in the 
State reports under section 14008 and the information required 
by section 14005(b)(3) including State-by-State information. 
SEC. 14011. PROHIBITION ON PROVISION OF CERTAIN ASSISTANCE. 
No recipient of funds under this title shall use such funds 
to provide financial assistance to students to attend private 
elementary or secondary schools. 
SEC. 14012. FISCAL RELIEF. 
(a) IN GENERAL.—For the purpose of relieving fiscal burdens 
on States and local educational agencies that have experienced
H. R. 1—172 
a precipitous decline in financial resources, the Secretary of Edu-
cation may waive or modify any requirement of this title relating 
to maintaining fiscal effort. 
(b) DURATION.—A waiver or modification under this section 
shall be for any of fiscal year 2009, fiscal year 2010, or fiscal 
year 2011, as determined by the Secretary. 
(c) CRITERIA.—The Secretary shall not grant a waiver or modi-
fication under this section unless the Secretary determines that 
the State or local educational agency receiving such waiver or 
modification will not provide for elementary and secondary edu-
cation, for the fiscal year under consideration, a smaller percentage 
of the total revenues available to the State or local educational 
agency than the amount provided for such purpose in the preceding 
fiscal year. 
(d) MAINTENANCE OF EFFORT.—Upon prior approval from the 
Secretary, a State or local educational agency that receives funds 
under this title may treat any portion of such funds that is used 
for elementary, secondary, or postsecondary education as non-Fed-
eral funds for the purpose of any requirement to maintain fiscal 
effort under any other program, including part C of the Individuals 
with Disabilities Education Act (20 U.S.C. 1431 et seq.), adminis-
tered by the Secretary. 
(e) SUBSEQUENT LEVEL OF EFFORT.—Notwithstanding (d), the 
level of effort required by a State or local educational agency for 
the following fiscal year shall not be reduced. 
SEC. 14013. DEFINITIONS. 
Except as otherwise provided in this title, as used in this 
title— 
(1) the terms ‘‘elementary education’’ and ‘‘secondary edu-
cation’’ have the meaning given such terms under State law; 
(2) the term ‘‘high-need local educational agency’’ means 
a local educational agency— 
(A) that serves not fewer than 10,000 children from 
families with incomes below the poverty line; or 
(B) for which not less than 20 percent of the children 
served by the agency are from families with incomes below 
the poverty line; 
(3) the term ‘‘institution of higher education’’ has the 
meaning given such term in section 101 of the Higher Education 
Act of 1965 (20 U.S.C. 1001); 
(4) the term ‘‘Secretary’’ means the Secretary of Education; 
(5) the term ‘‘State’’ means each of the 50 States, the 
District of Columbia, and the Commonwealth of Puerto Rico; 
and 
(6) any other term used that is defined in section 9101 
of the ESEA (20 U.S.C. 7801) shall have the meaning given 
the term in such section. 
TITLE XV—ACCOUNTABILITY AND 
TRANSPARENCY 
SEC. 1501. DEFINITIONS. 
In this title: 
(1) AGENCY.—The term ‘‘agency’’ has the meaning given 
under section 551 of title 5, United States Code.
H. R. 1—173 
(2) BOARD.—The term ‘‘Board’’ means the Recovery 
Accountability and Transparency Board established in section 
1521. 
(3) CHAIRPERSON.—The term ‘‘Chairperson’’ means the 
Chairperson of the Board. 
(4) COVERED FUNDS.—The term ‘‘covered funds’’ means any 
funds that are expended or obligated from appropriations made 
under this Act. 
(5) PANEL.—The term ‘‘Panel’’ means the Recovery Inde-
pendent Advisory Panel established in section 1541. 
Subtitle A—Transparency and Oversight 
Requirements 
SEC. 1511. CERTIFICATIONS. 
With respect to covered funds made available to State or local 
governments for infrastructure investments, the Governor, mayor, 
or other chief executive, as appropriate, shall certify that the infra-
structure investment has received the full review and vetting 
required by law and that the chief executive accepts responsibility 
that the infrastructure investment is an appropriate use of taxpayer 
dollars. Such certification shall include a description of the invest-
ment, the estimated total cost, and the amount of covered funds 
to be used, and shall be posted on a website and linked to the 
website established by section 1526. A State or local agency may 
not receive infrastructure investment funding from funds made 
available in this Act unless this certification is made and posted. 
SEC. 1512. REPORTS ON USE OF FUNDS. 
(a) SHORT TITLE.—This section may be cited as the ‘‘Jobs 
Accountability Act’’. 
(b) DEFINITIONS.—In this section: 
(1) RECIPIENT.—The term ‘‘recipient’’— 
(A) means any entity that receives recovery funds 
directly from the Federal Government (including recovery 
funds received through grant, loan, or contract) other than 
an individual; and 
(B) includes a State that receives recovery funds. 
(2) RECOVERY FUNDS.—The term ‘‘recovery funds’’ means 
any funds that are made available from appropriations made 
under this Act. 
(c) RECIPIENT REPORTS.—Not later than 10 days after the end 
of each calendar quarter, each recipient that received recovery 
funds from a Federal agency shall submit a report to that agency 
that contains— 
(1) the total amount of recovery funds received from that 
agency; 
(2) the amount of recovery funds received that were 
expended or obligated to projects or activities; and 
(3) a detailed list of all projects or activities for which 
recovery funds were expended or obligated, including— 
(A) the name of the project or activity; 
(B) a description of the project or activity; 
(C) an evaluation of the completion status of the project 
or activity;
H. R. 1—174 
(D) an estimate of the number of jobs created and 
the number of jobs retained by the project or activity; 
and 
(E) for infrastructure investments made by State and 
local governments, the purpose, total cost, and rationale 
of the agency for funding the infrastructure investment 
with funds made available under this Act, and name of 
the person to contact at the agency if there are concerns 
with the infrastructure investment. 
(4) Detailed information on any subcontracts or subgrants 
awarded by the recipient to include the data elements required 
to comply with the Federal Funding Accountability and Trans-
parency Act of 2006 (Public Law 109–282), allowing aggregate 
reporting on awards below $25,000 or to individuals, as pre-
scribed by the Director of the Office of Management and Budget. 
(d) AGENCY REPORTS.—Not later than 30 days after the end 
of each calendar quarter, each agency that made recovery funds 
available to any recipient shall make the information in reports 
submitted under subsection (c) publicly available by posting the 
information on a website. 
(e) OTHER REPORTS.—The Congressional Budget Office and the 
Government Accountability Office shall comment on the information 
described in subsection (c)(3)(D) for any reports submitted under 
subsection (c). Such comments shall be due within 45 days after 
such reports are submitted. 
(f) COMPLIANCE.—Within 180 days of enactment, as a condition 
of receipt of funds under this Act, Federal agencies shall require 
any recipient of such funds to provide the information required 
under subsection (c). 
(g) GUIDANCE.—Federal agencies, in coordination with the 
Director of the Office of Management and Budget, shall provide 
for user-friendly means for recipients of covered funds to meet 
the requirements of this section. 
(h) REGISTRATION.—Funding recipients required to report 
information per subsection (c)(4) must register with the Central 
Contractor Registration database or complete other registration 
requirements as determined by the Director of the Office of Manage-
ment and Budget. 
SEC. 1513. REPORTS OF THE COUNCIL OF ECONOMIC ADVISERS. 
(a) IN GENERAL.—In consultation with the Director of the Office 
of Management and Budget and the Secretary of the Treasury, 
the Chairperson of the Council of Economic Advisers shall submit 
quarterly reports to the Committees on Appropriations of the Senate 
and House of Representatives that detail the impact of programs 
funded through covered funds on employment, estimated economic 
growth, and other key economic indicators. 
(b) SUBMISSION OF REPORTS.— 
(1) FIRST REPORT.—The first report submitted under sub-
section (a) shall be submitted not later than 45 days after 
the end of the first full quarter following the date of enactment 
of this Act. 
(2) LAST REPORT.—The last report required to be submitted 
under subsection (a) shall apply to the quarter in which the 
Board terminates under section 1530.
H. R. 1—175 
SEC. 1514. INSPECTOR GENERAL REVIEWS. 
(a) REVIEWS.—Any inspector general of a Federal department 
or executive agency shall review, as appropriate, any concerns 
raised by the public about specific investments using funds made 
available in this Act. Any findings of such reviews not related 
to an ongoing criminal proceeding shall be relayed immediately 
to the head of the department or agency concerned. In addition, 
the findings of such reviews, along with any audits conducted 
by any inspector general of funds made available in this Act, shall 
be posted on the inspector general’s website and linked to the 
website established by section 1526, except that portions of reports 
may be redacted to the extent the portions would disclose informa-
tion that is protected from public disclosure under sections 552 
and 552a of title 5, United States Code. 
SEC. 1515. ACCESS OF OFFICES OF INSPECTOR GENERAL TO CERTAIN 
RECORDS AND EMPLOYEES. 
(a) ACCESS.—With respect to each contract or grant awarded 
using covered funds, any representative of an appropriate inspector 
general appointed under section 3 or 8G of the Inspector General 
Act of 1978 (5 U.S.C. App.), is authorized— 
(1) to examine any records of the contractor or grantee, 
any of its subcontractors or subgrantees, or any State or local 
agency administering such contract, that pertain to, and involve 
transactions relating to, the contract, subcontract, grant, or 
subgrant; and 
(2) to interview any officer or employee of the contractor, 
grantee, subgrantee, or agency regarding such transactions. 
(b) RELATIONSHIP TO EXISTING AUTHORITY.—Nothing in this 
section shall be interpreted to limit or restrict in any way any 
existing authority of an inspector general. 
Subtitle B—Recovery Accountability and 
Transparency Board 
SEC. 1521. ESTABLISHMENT OF THE RECOVERY ACCOUNTABILITY AND 
TRANSPARENCY BOARD. 
There is established the Recovery Accountability and Trans-
parency Board to coordinate and conduct oversight of covered funds 
to prevent fraud, waste, and abuse. 
SEC. 1522. COMPOSITION OF BOARD. 
(a) CHAIRPERSON.— 
(1) DESIGNATION OR APPOINTMENT.—The President shall— 
(A) designate the Deputy Director for Management 
of the Office of Management and Budget to serve as Chair-
person of the Board; 
(B) designate another Federal officer who was 
appointed by the President to a position that required 
the advice and consent of the Senate, to serve as Chair-
person of the Board; or 
(C) appoint an individual as the Chairperson of the 
Board, by and with the advice and consent of the Senate. 
(2) COMPENSATION.— 
(A) DESIGNATION OF FEDERAL OFFICER.—If the Presi-
dent designates a Federal officer under paragraph (1)(A)
H. R. 1—176 
or (B) to serve as Chairperson, that Federal officer may 
not receive additional compensation for services performed 
as Chairperson. 
(B) APPOINTMENT
OF
NON-FEDERAL
OFFICER.—If the 
President appoints an individual as Chairperson under 
paragraph (1)(C), that individual shall be compensated at 
the rate of basic pay prescribed for level IV of the Executive 
Schedule under section 5315 of title 5, United States Code. 
(b) MEMBERS.—The members of the Board shall include— 
(1) the Inspectors General of the Departments of Agri-
culture, Commerce, Education, Energy, Health and Human 
Services, Homeland Security, Justice, Transportation, Treasury, 
and the Treasury Inspector General for Tax Administration; 
and 
(2) any other Inspector General as designated by the Presi-
dent from any agency that expends or obligates covered funds. 
SEC. 1523. FUNCTIONS OF THE BOARD. 
(a) FUNCTIONS.— 
(1) IN GENERAL.—The Board shall coordinate and conduct 
oversight of covered funds in order to prevent fraud, waste, 
and abuse. 
(2) SPECIFIC FUNCTIONS.—The functions of the Board shall 
include— 
(A) reviewing whether the reporting of contracts and 
grants using covered funds meets applicable standards and 
specifies the purpose of the contract or grant and measures 
of performance; 
(B) 
reviewing 
whether 
competition 
requirements 
applicable to contracts and grants using covered funds 
have been satisfied; 
(C) auditing or reviewing covered funds to determine 
whether wasteful spending, poor contract or grant manage-
ment, or other abuses are occurring and referring matters 
it considers appropriate for investigation to the inspector 
general for the agency that disbursed the covered funds; 
(D) reviewing whether there are sufficient qualified 
acquisition and grant personnel overseeing covered funds; 
(E) reviewing whether personnel whose duties involve 
acquisitions or grants made with covered funds receive 
adequate training; and 
(F) reviewing whether there are appropriate mecha-
nisms for interagency collaboration relating to covered 
funds, including coordinating and collaborating to the 
extent practicable with the Inspectors General Council on 
Integrity and Efficiency established by the Inspector Gen-
eral Reform Act of 2008 (Public Law 110–409). 
(b) REPORTS.— 
(1) FLASH AND OTHER REPORTS.—The Board shall submit 
to the President and Congress, including the Committees on 
Appropriations of the Senate and House of Representatives, 
reports, to be known as ‘‘flash reports’’, on potential manage-
ment and funding problems that require immediate attention. 
The Board also shall submit to Congress such other reports 
as the Board considers appropriate on the use and benefits 
of funds made available in this Act.
H. R. 1—177 
(2) QUARTERLY REPORTS.—The Board shall submit quar-
terly reports to the President and Congress, including the 
Committees on Appropriations of the Senate and House of 
Representatives, summarizing the findings of the Board and 
the findings of inspectors general of agencies. The Board may 
submit additional reports as appropriate. 
(3) ANNUAL
REPORTS.—The Board shall submit annual 
reports to the President and Congress, including the Commit-
tees on Appropriations of the Senate and House of Representa-
tives, consolidating applicable quarterly reports on the use of 
covered funds. 
(4) PUBLIC AVAILABILITY.— 
(A) IN GENERAL.—All reports submitted under this sub-
section shall be made publicly available and posted on 
the website established by section 1526. 
(B) REDACTIONS.—Any portion of a report submitted 
under this subsection may be redacted when made publicly 
available, if that portion would disclose information that 
is not subject to disclosure under sections 552 and 552a 
of title 5, United States Code. 
(c) RECOMMENDATIONS.— 
(1) IN GENERAL.—The Board shall make recommendations 
to agencies on measures to prevent fraud, waste, and abuse 
relating to covered funds. 
(2) RESPONSIVE REPORTS.—Not later than 30 days after 
receipt of a recommendation under paragraph (1), an agency 
shall submit a report to the President, the congressional 
committees of jurisdiction, including the Committees on Appro-
priations of the Senate and House of Representatives, and 
the Board on— 
(A) whether the agency agrees or disagrees with the 
recommendations; and 
(B) any actions the agency will take to implement 
the recommendations. 
SEC. 1524. POWERS OF THE BOARD. 
(a) IN GENERAL.—The Board shall conduct audits and reviews 
of spending of covered funds and coordinate on such activities 
with the inspectors general of the relevant agency to avoid duplica-
tion and overlap of work. 
(b) AUDITS AND REVIEWS.—The Board may— 
(1) conduct its own independent audits and reviews relating 
to covered funds; and 
(2) collaborate on audits and reviews relating to covered 
funds with any inspector general of an agency. 
(c) AUTHORITIES.— 
(1) AUDITS
AND
REVIEWS.—In conducting audits and 
reviews, the Board shall have the authorities provided under 
section 6 of the Inspector General Act of 1978 (5 U.S.C. App.). 
Additionally, the Board may issue subpoenas to compel the 
testimony of persons who are not Federal officers or employees 
and may enforce such subpoenas in the same manner as pro-
vided for inspector general subpoenas under section 6 of the 
Inspector General Act of 1978 (5 U.S.C. App.). 
(2) STANDARDS AND GUIDELINES.—The Board shall carry 
out the powers under subsections (a) and (b) in accordance
H. R. 1—178 
with section 4(b)(1) of the Inspector General Act of 1978 (5 
U.S.C. App.). 
(d) PUBLIC HEARINGS.—The Board may hold public hearings 
and Board personnel may conduct necessary inquiries. The head 
of each agency shall make all officers and employees of that agency 
available to provide testimony to the Board and Board personnel. 
The Board may issue subpoenas to compel the testimony of persons 
who are not Federal officers or employees at such public hearings. 
Any such subpoenas may be enforced in the same manner as 
provided for inspector general subpoenas under section 6 of the 
Inspector General Act of 1978 (5 U.S.C. App.). 
(e) CONTRACTS.—The Board may enter into contracts to enable 
the Board to discharge its duties under this subtitle, including 
contracts and other arrangements for audits, studies, analyses, 
and other services with public agencies and with private persons, 
and make such payments as may be necessary to carry out the 
duties of the Board. 
(f) TRANSFER OF FUNDS.—The Board may transfer funds appro-
priated to the Board for expenses to support administrative support 
services and audits, reviews, or other activities related to oversight 
by the Board of covered funds to any office of inspector general, 
the Office of Management and Budget, the General Services 
Administration, and the Panel. 
SEC. 1525. EMPLOYMENT, PERSONNEL, AND RELATED AUTHORITIES. 
(a) EMPLOYMENT AND PERSONNEL AUTHORITIES.— 
(1) IN GENERAL.— 
(A) AUTHORITIES.—Subject to paragraph (2), the Board 
may exercise the authorities of subsections (b) through 
(i) of section 3161 of title 5, United States Code (without 
regard to subsection (a) of that section). 
(B) APPLICATION.—For purposes of exercising the 
authorities described under subparagraph (A), the term 
‘‘Chairperson of the Board’’ shall be substituted for the 
term ‘‘head of a temporary organization’’. 
(C) CONSULTATION.—In exercising the authorities 
described under subparagraph (A), the Chairperson shall 
consult with members of the Board. 
(2) EMPLOYMENT AUTHORITIES.—In exercising the employ-
ment authorities under subsection (b) of section 3161 of title 
5, United States Code, as provided under paragraph (1) of 
this subsection— 
(A) paragraph (2) of subsection (b) of section 3161 
of that title (relating to periods of appointments) shall 
not apply; and 
(B) no period of appointment may exceed the date 
on which the Board terminates under section 1530. 
(b) INFORMATION AND ASSISTANCE.— 
(1) IN GENERAL.—Upon request of the Board for information 
or assistance from any agency or other entity of the Federal 
Government, the head of such entity shall, insofar as is prac-
ticable and not in contravention of any existing law, furnish 
such information or assistance to the Board, or an authorized 
designee. 
(2) REPORT OF REFUSALS.—Whenever information or assist-
ance requested by the Board is, in the judgment of the Board, 
unreasonably refused or not provided, the Board shall report
H. R. 1—179 
the circumstances to the congressional committees of jurisdic-
tion, including the Committees on Appropriations of the Senate 
and House of Representatives, without delay. 
(c) ADMINISTRATIVE SUPPORT.—The General Services Adminis-
tration shall provide the Board with administrative support serv-
ices, including the provision of office space and facilities. 
SEC. 1526. BOARD WEBSITE. 
(a) ESTABLISHMENT.—The Board shall establish and maintain, 
no later than 30 days after enactment of this Act, a user-friendly, 
public-facing website to foster greater accountability and trans-
parency in the use of covered funds. 
(b) PURPOSE.—The website established and maintained under 
subsection (a) shall be a portal or gateway to key information 
relating to this Act and provide connections to other Government 
websites with related information. 
(c) CONTENT AND FUNCTION.—In establishing the website estab-
lished and maintained under subsection (a), the Board shall ensure 
the following: 
(1) The website shall provide materials explaining what 
this Act means for citizens. The materials shall be easy to 
understand and regularly updated. 
(2) The website shall provide accountability information, 
including findings from audits, inspectors general, and the 
Government Accountability Office. 
(3) The website shall provide data on relevant economic, 
financial, grant, and contract information in user-friendly visual 
presentations to enhance public awareness of the use of covered 
funds. 
(4) The website shall provide detailed data on contracts 
awarded by the Federal Government that expend covered funds, 
including information about the competitiveness of the con-
tracting process, information about the process that was used 
for the award of contracts, and for contracts over $500,000 
a summary of the contract. 
(5) The website shall include printable reports on covered 
funds obligated by month to each State and congressional dis-
trict. 
(6) The website shall provide a means for the public to 
give feedback on the performance of contracts that expend 
covered funds. 
(7) The website shall include detailed information on Fed-
eral Government contracts and grants that expend covered 
funds, to include the data elements required to comply with 
the Federal Funding Accountability and Transparency Act of 
2006 (Public Law 109–282), allowing aggregate reporting on 
awards below $25,000 or to individuals, as prescribed by the 
Director of the Office of Management and Budget. 
(8) The website shall provide a link to estimates of the 
jobs sustained or created by the Act. 
(9) The website shall provide a link to information about 
announcements of grant competitions and solicitations for con-
tracts to be awarded. 
(10) The website shall include appropriate links to other 
government websites with information concerning covered 
funds, including Federal agency and State websites.
H. R. 1—180 
(11) The website shall include a plan from each Federal 
agency for using funds made available in this Act to the agency. 
(12) The website shall provide information on Federal 
allocations of formula grants and awards of competitive grants 
using covered funds. 
(13) The website shall provide information on Federal 
allocations of mandatory and other entitlement programs by 
State, county, or other appropriate geographical unit. 
(14) To the extent practical, the website shall provide, 
organized by the location of the job opportunities involved, 
links to and information about how to access job opportunities, 
including, if possible, links to or information about local employ-
ment agencies, job banks operated by State workforce agencies, 
the Department of Labor’s CareerOneStop website, State, local 
and other public agencies receiving Federal funding, and private 
firms contracted to perform work with Federal funding, in 
order to direct job seekers to job opportunities created by this 
Act. 
(15) The website shall be enhanced and updated as nec-
essary to carry out the purposes of this subtitle. 
(d) WAIVER.—The Board may exclude posting contractual or 
other information on the website on a case-by-case basis when 
necessary to protect national security or to protect information 
that is not subject to disclosure under sections 552 and 552a of 
title 5, United States Code. 
SEC. 1527. INDEPENDENCE OF INSPECTORS GENERAL. 
(a) INDEPENDENT AUTHORITY.—Nothing in this subtitle shall 
affect the independent authority of an inspector general to deter-
mine whether to conduct an audit or investigation of covered funds. 
(b) REQUESTS
BY BOARD.—If the Board requests that an 
inspector general conduct or refrain from conducting an audit or 
investigation and the inspector general rejects the request in whole 
or in part, the inspector general shall, not later than 30 days 
after rejecting the request, submit a report to the Board, the head 
of the applicable agency, and the congressional committees of juris-
diction, including the Committees on Appropriations of the Senate 
and House of Representatives. The report shall state the reasons 
that the inspector general has rejected the request in whole or 
in part. The inspector general’s decision shall be final. 
SEC. 1528. COORDINATION WITH THE COMPTROLLER GENERAL AND 
STATE AUDITORS. 
The Board shall coordinate its oversight activities with the 
Comptroller General of the United States and State auditors. 
SEC. 1529. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums as necessary 
to carry out this subtitle. 
SEC. 1530. TERMINATION OF THE BOARD. 
The Board shall terminate on September 30, 2013.
H. R. 1—181 
Subtitle C—Recovery Independent 
Advisory Panel 
SEC. 1541. ESTABLISHMENT OF RECOVERY INDEPENDENT ADVISORY 
PANEL. 
(a) ESTABLISHMENT.—There is established the Recovery Inde-
pendent Advisory Panel. 
(b) MEMBERSHIP.—The Panel shall be composed of 5 members 
who shall be appointed by the President. 
(c) QUALIFICATIONS.—Members shall be appointed on the basis 
of expertise in economics, public finance, contracting, accounting, 
or any other relevant field. 
(d) INITIAL MEETING.—Not later than 30 days after the date 
on which all members of the Panel have been appointed, the Panel 
shall hold its first meeting. 
(e) MEETINGS.—The Panel shall meet at the call of the Chair-
person of the Panel. 
(f) QUORUM.—A majority of the members of the Panel shall 
constitute a quorum, but a lesser number of members may hold 
hearings. 
(g) CHAIRPERSON
AND VICE CHAIRPERSON.—The Panel shall 
select a Chairperson and Vice Chairperson from among its members. 
SEC. 1542. DUTIES OF THE PANEL. 
The Panel shall make recommendations to the Board on actions 
the Board could take to prevent fraud, waste, and abuse relating 
to covered funds. 
SEC. 1543. POWERS OF THE PANEL. 
(a) HEARINGS.—The Panel may hold such hearings, sit and 
act at such times and places, take such testimony, and receive 
such evidence as the Panel considers advisable to carry out this 
subtitle. 
(b) INFORMATION FROM FEDERAL AGENCIES.—The Panel may 
secure directly from any agency such information as the Panel 
considers necessary to carry out this subtitle. Upon request of 
the Chairperson of the Panel, the head of such agency shall furnish 
such information to the Panel. 
(c) POSTAL SERVICES.—The Panel may use the United States 
mails in the same manner and under the same conditions as agen-
cies of the Federal Government. 
(d) GIFTS.—The Panel may accept, use, and dispose of gifts 
or donations of services or property. 
SEC. 1544. PANEL PERSONNEL MATTERS. 
(a) COMPENSATION OF MEMBERS.—Each member of the Panel 
who is not an officer or employee of the Federal Government shall 
be compensated at a rate equal to the daily equivalent of the 
annual rate of basic pay prescribed for level IV of the Executive 
Schedule under section 5315 of title 5, United States Code, for 
each day (including travel time) during which such member is 
engaged in the performance of the duties of the Panel. All members 
of the Panel who are officers or employees of the United States 
shall serve without compensation in addition to that received for 
their services as officers or employees of the United States.
H. R. 1—182 
(b) TRAVEL EXPENSES.—The members of the Panel shall be 
allowed travel expenses, including per diem in lieu of subsistence, 
at rates authorized for employees of agencies under subchapter 
I of chapter 57 of title 5, United States Code, while away from 
their homes or regular places of business in the performance of 
services for the Panel. 
(c) STAFF.— 
(1) IN GENERAL.—The Chairperson of the Panel may, with-
out regard to the civil service laws and regulations, appoint 
and terminate an executive director and such other additional 
personnel as may be necessary to enable the Panel to perform 
its duties. The employment of an executive director shall be 
subject to confirmation by the Panel. 
(2) COMPENSATION.—The Chairperson of the Panel may 
fix the compensation of the executive director and other per-
sonnel without regard to chapter 51 and subchapter III of 
chapter 53 of title 5, United States Code, relating to classifica-
tion of positions and General Schedule pay rates, except that 
the rate of pay for the executive director and other personnel 
may not exceed the rate payable for level V of the Executive 
Schedule under section 5316 of such title. 
(3) PERSONNEL AS FEDERAL EMPLOYEES.— 
(A) IN GENERAL.—The executive director and any per-
sonnel of the Panel who are employees shall be employees 
under section 2105 of title 5, United States Code, for pur-
poses of chapters 63, 81, 83, 84, 85, 87, 89, 89A, 89B, 
and 90 of that title. 
(B) MEMBERS OF PANEL.—Subparagraph (A) shall not 
be construed to apply to members of the Panel. 
(d) DETAIL OF GOVERNMENT EMPLOYEES.—Any Federal Govern-
ment employee may be detailed to the Panel without reimburse-
ment, and such detail shall be without interruption or loss of 
civil service status or privilege. 
(e) PROCUREMENT
OF TEMPORARY
AND INTERMITTENT SERV-
ICES.—The Chairperson of the Panel may procure temporary and 
intermittent services under section 3109(b) of title 5, United States 
Code, at rates for individuals which do not exceed the daily equiva-
lent of the annual rate of basic pay prescribed for level V of 
the Executive Schedule under section 5316 of such title. 
(f) ADMINISTRATIVE SUPPORT.—The General Services Adminis-
tration shall provide the Panel with administrative support services, 
including the provision of office space and facilities. 
SEC. 1545. TERMINATION OF THE PANEL. 
The Panel shall terminate on September 30, 2013. 
SEC. 1546. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated such sums as necessary 
to carry out this subtitle. 
Subtitle D—Additional Accountability and 
Transparency Requirements 
SEC. 1551. AUTHORITY TO ESTABLISH SEPARATE FUNDING ACCOUNTS. 
Although this Act provides supplemental appropriations for 
programs, projects, and activities in existing Treasury accounts,
H. R. 1—183 
to facilitate tracking these funds through Treasury and agency 
accounting systems, the Secretary of the Treasury shall ensure 
that all funds appropriated in this Act shall be established in 
separate Treasury accounts, unless a waiver from this provision 
is approved by the Director of the Office of Management and Budget. 
SEC. 
1552. 
SET-ASIDE 
FOR 
STATE 
AND 
LOCAL 
GOVERNMENT 
REPORTING AND RECORDKEEPING. 
Federal agencies receiving funds under this Act, may, after 
following the notice and comment rulemaking requirements under 
the Administrative Procedures Act (5 U.S.C. 500), reasonably adjust 
applicable limits on administrative expenditures for Federal awards 
to help award recipients defray the costs of data collection require-
ments initiated pursuant to this Act. 
SEC. 1553. PROTECTING STATE AND LOCAL GOVERNMENT AND CON-
TRACTOR WHISTLEBLOWERS. 
(a) PROHIBITION OF REPRISALS.—An employee of any non-Fed-
eral employer receiving covered funds may not be discharged, 
demoted, or otherwise discriminated against as a reprisal for dis-
closing, including a disclosure made in the ordinary course of an 
employee’s duties, to the Board, an inspector general, the Comp-
troller General, a member of Congress, a State or Federal regulatory 
or law enforcement agency, a person with supervisory authority 
over the employee (or such other person working for the employer 
who has the authority to investigate, discover, or terminate mis-
conduct), a court or grand jury, the head of a Federal agency, 
or their representatives, information that the employee reasonably 
believes is evidence of— 
(1) gross mismanagement of an agency contract or grant 
relating to covered funds; 
(2) a gross waste of covered funds; 
(3) a substantial and specific danger to public health or 
safety related to the implementation or use of covered funds; 
(4) an abuse of authority related to the implementation 
or use of covered funds; or 
(5) a violation of law, rule, or regulation related to an 
agency contract (including the competition for or negotiation 
of a contract) or grant, awarded or issued relating to covered 
funds. 
(b) INVESTIGATION OF COMPLAINTS.— 
(1) IN GENERAL.—A person who believes that the person 
has been subjected to a reprisal prohibited by subsection (a) 
may submit a complaint regarding the reprisal to the appro-
priate inspector general. Except as provided under paragraph 
(3), unless the inspector general determines that the complaint 
is frivolous, does not relate to covered funds, or another Federal 
or State judicial or administrative proceeding has previously 
been invoked to resolve such complaint, the inspector general 
shall investigate the complaint and, upon completion of such 
investigation, submit a report of the findings of the investiga-
tion to the person, the person’s employer, the head of the 
appropriate agency, and the Board. 
(2) TIME LIMITATIONS FOR ACTIONS.— 
(A) IN GENERAL.—Except as provided under subpara-
graph (B), the inspector general shall, not later than 180 
days after receiving a complaint under paragraph (1)—
H. R. 1—184 
(i) make a determination that the complaint is 
frivolous, does not relate to covered funds, or another 
Federal or State judicial or administrative proceeding 
has previously been invoked to resolve such complaint; 
or 
(ii) submit a report under paragraph (1). 
(B) EXTENSIONS.— 
(i) VOLUNTARY
EXTENSION
AGREED
TO
BETWEEN 
INSPECTOR
GENERAL
AND
COMPLAINANT.—If 
the 
inspector general is unable to complete an investigation 
under this section in time to submit a report within 
the 180-day period specified under subparagraph (A) 
and the person submitting the complaint agrees to 
an extension of time, the inspector general shall submit 
a report under paragraph (1) within such additional 
period of time as shall be agreed upon between the 
inspector general and the person submitting the com-
plaint. 
(ii) EXTENSION GRANTED BY INSPECTOR GENERAL.— 
If the inspector general is unable to complete an inves-
tigation under this section in time to submit a report 
within the 180-day period specified under subpara-
graph (A), the inspector general may extend the period 
for not more than 180 days without agreeing with 
the person submitting the complaint to such extension, 
provided that the inspector general provides a written 
explanation (subject to the authority to exclude 
information under paragraph (4)(C)) for the decision, 
which shall be provided to both the person submitting 
the complaint and the non-Federal employer. 
(iii) SEMI-ANNUAL
REPORT
ON
EXTENSIONS.—The 
inspector general shall include in semi-annual reports 
to Congress a list of those investigations for which 
the inspector general received an extension. 
(3) DISCRETION NOT TO INVESTIGATE COMPLAINTS.— 
(A) IN GENERAL.—The inspector general may decide 
not to conduct or continue an investigation under this 
section upon providing to the person submitting the com-
plaint and the non-Federal employer a written explanation 
(subject to the authority to exclude information under para-
graph (4)(C)) for such decision. 
(B) ASSUMPTION OF RIGHTS TO CIVIL REMEDY.—Upon 
receipt of an explanation of a decision not to conduct or 
continue an investigation under subparagraph (A), the per-
son submitting a complaint shall immediately assume the 
right to a civil remedy under subsection (c)(3) as if the 
210-day period specified under such subsection has already 
passed. 
(C) SEMI-ANNUAL REPORT.—The inspector general shall 
include in semi-annual reports to Congress a list of those 
investigations the inspector general decided not to conduct 
or continue under this paragraph. 
(4) ACCESS
TO
INVESTIGATIVE
FILE
OF
INSPECTOR
GEN-
ERAL.— 
(A) IN GENERAL.—The person alleging a reprisal under 
this section shall have access to the investigation file of
H. R. 1—185 
the appropriate inspector general in accordance with sec-
tion 552a of title 5, United States Code (commonly referred 
to as the ‘‘Privacy Act’’). The investigation of the inspector 
general shall be deemed closed for purposes of disclosure 
under such section when an employee files an appeal to 
an agency head or a court of competent jurisdiction. 
(B) CIVIL ACTION.—In the event the person alleging 
the reprisal brings suit under subsection (c)(3), the person 
alleging the reprisal and the non-Federal employer shall 
have access to the investigative file of the inspector general 
in accordance with the Privacy Act. 
(C) EXCEPTION.—The inspector general may exclude 
from disclosure— 
(i) information protected from disclosure by a 
provision of law; and 
(ii) any additional information the inspector gen-
eral determines disclosure of which would impede a 
continuing investigation, provided that such informa-
tion is disclosed once such disclosure would no longer 
impede such investigation, unless the inspector general 
determines that disclosure of law enforcement tech-
niques, procedures, or information could reasonably 
be expected to risk circumvention of the law or disclose 
the identity of a confidential source. 
(5) PRIVACY OF INFORMATION.—An inspector general inves-
tigating an alleged reprisal under this section may not respond 
to any inquiry or disclose any information from or about any 
person alleging such reprisal, except in accordance with the 
provisions of section 552a of title 5, United States Code, or 
as required by any other applicable Federal law. 
(c) REMEDY AND ENFORCEMENT AUTHORITY.— 
(1) BURDEN OF PROOF.— 
(A) 
DISCLOSURE
AS
CONTRIBUTING
FACTOR
IN 
REPRISAL.— 
(i) IN GENERAL.—A person alleging a reprisal under 
this section shall be deemed to have affirmatively 
established the occurrence of the reprisal if the person 
demonstrates that a disclosure described in subsection 
(a) was a contributing factor in the reprisal. 
(ii) USE OF CIRCUMSTANTIAL EVIDENCE.—A disclo-
sure may be demonstrated as a contributing factor 
in a reprisal for purposes of this paragraph by cir-
cumstantial evidence, including— 
(I) evidence that the official undertaking the 
reprisal knew of the disclosure; or 
(II) evidence that the reprisal occurred within 
a period of time after the disclosure such that 
a reasonable person could conclude that the disclo-
sure was a contributing factor in the reprisal. 
(B) OPPORTUNITY
FOR
REBUTTAL.—The head of an 
agency may not find the occurrence of a reprisal with 
respect to a reprisal that is affirmatively established under 
subparagraph (A) if the non-Federal employer dem-
onstrates by clear and convincing evidence that the non- 
Federal employer would have taken the action constituting 
the reprisal in the absence of the disclosure.
H. R. 1—186 
(2) AGENCY ACTION.—Not later than 30 days after receiving 
an inspector general report under subsection (b), the head 
of the agency concerned shall determine whether there is suffi-
cient basis to conclude that the non-Federal employer has sub-
jected the complainant to a reprisal prohibited by subsection 
(a) and shall either issue an order denying relief in whole 
or in part or shall take 1 or more of the following actions: 
(A) Order the employer to take affirmative action to 
abate the reprisal. 
(B) Order the employer to reinstate the person to the 
position that the person held before the reprisal, together 
with the compensation (including back pay), compensatory 
damages, employment benefits, and other terms and condi-
tions of employment that would apply to the person in 
that position if the reprisal had not been taken. 
(C) Order the employer to pay the complainant an 
amount equal to the aggregate amount of all costs and 
expenses (including attorneys’ fees and expert witnesses’ 
fees) that were reasonably incurred by the complainant 
for, or in connection with, bringing the complaint regarding 
the reprisal, as determined by the head of the agency 
or a court of competent jurisdiction. 
(3) CIVIL
ACTION.—If the head of an agency issues an 
order denying relief in whole or in part under paragraph (1), 
has not issued an order within 210 days after the submission 
of a complaint under subsection (b), or in the case of an exten-
sion of time under subsection (b)(2)(B)(i), within 30 days after 
the expiration of the extension of time, or decides under sub-
section (b)(3) not to investigate or to discontinue an investiga-
tion, and there is no showing that such delay or decision is 
due to the bad faith of the complainant, the complainant shall 
be deemed to have exhausted all administrative remedies with 
respect to the complaint, and the complainant may bring a 
de novo action at law or equity against the employer 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. Such an action shall, at the 
request of either party to the action, be tried by the court 
with a jury. 
(4) JUDICIAL ENFORCEMENT OF ORDER.—Whenever a person 
fails to comply with an order issued under paragraph (2), 
the head of the agency shall file an action for enforcement 
of such order in the United States district court for a district 
in which the reprisal was found to have occurred. In any 
action brought under this paragraph, the court may grant 
appropriate relief, including injunctive relief, compensatory and 
exemplary damages, and attorneys fees and costs. 
(5) JUDICIAL REVIEW.—Any person adversely affected or 
aggrieved by an order issued under paragraph (2) may obtain 
review of the order’s conformance with this subsection, and 
any regulations issued to carry out this section, in the United 
States court of appeals for a circuit in which the reprisal 
is alleged in the order to have occurred. No petition seeking 
such review may be filed more than 60 days after issuance 
of the order by the head of the agency. Review shall conform 
to chapter 7 of title 5, United States Code.
H. R. 1—187 
(d) NONENFORCEABILITY
OF
CERTAIN
PROVISIONS
WAIVING 
RIGHTS AND REMEDIES OR REQUIRING ARBITRATION OF DISPUTES.— 
(1) WAIVER OF RIGHTS AND REMEDIES.—Except as provided 
under paragraph (3), the rights and remedies provided for 
in this section may not be waived by any agreement, policy, 
form, or condition of employment, including by any predispute 
arbitration agreement. 
(2) PREDISPUTE ARBITRATION AGREEMENTS.—Except as pro-
vided under paragraph (3), no predispute arbitration agreement 
shall be valid or enforceable if it requires arbitration of a 
dispute arising under this section. 
(3) EXCEPTION FOR COLLECTIVE BARGAINING AGREEMENTS.— 
Notwithstanding paragraphs (1) and (2), an arbitration provi-
sion in a collective bargaining agreement shall be enforceable 
as to disputes arising under the collective bargaining agree-
ment. 
(e) REQUIREMENT TO POST NOTICE OF RIGHTS AND REMEDIES.— 
Any employer receiving covered funds shall post notice of the rights 
and remedies provided under this section. 
(f) RULES OF CONSTRUCTION.— 
(1) NO
IMPLIED
AUTHORITY
TO
RETALIATE
FOR
NON-PRO-
TECTED
DISCLOSURES.—Nothing in this section may be con-
strued to authorize the discharge of, demotion of, or discrimina-
tion against an employee for a disclosure other than a disclosure 
protected by subsection (a) or to modify or derogate from a 
right or remedy otherwise available to the employee. 
(2) RELATIONSHIP TO STATE LAWS.—Nothing in this section 
may be construed to preempt, preclude, or limit the protections 
provided for public or private employees under State whistle-
blower laws. 
(g) DEFINITIONS.—In this section: 
(1) ABUSE OF AUTHORITY.—The term ‘‘abuse of authority’’ 
means an arbitrary and capricious exercise of authority by 
a contracting official or employee that adversely affects the 
rights of any person, or that results in personal gain or advan-
tage to the official or employee or to preferred other persons. 
(2) COVERED FUNDS.—The term ‘‘covered funds’’ means any 
contract, grant, or other payment received by any non-Federal 
employer if— 
(A) the Federal Government provides any portion of 
the money or property that is provided, requested, or 
demanded; and 
(B) at least some of the funds are appropriated or 
otherwise made available by this Act. 
(3) EMPLOYEE.—The term ‘‘employee’’— 
(A) except as provided under subparagraph (B), means 
an individual performing services on behalf of an employer; 
and 
(B) does not include any Federal employee or member 
of the uniformed services (as that term is defined in section 
101(a)(5) of title 10, United States Code). 
(4) NON-FEDERAL
EMPLOYER.—The term ‘‘non-Federal 
employer’’— 
(A) means any employer— 
(i) with respect to covered funds— 
(I) the contractor, subcontractor, grantee, or 
recipient, as the case may be, if the contractor,
H. R. 1—188 
subcontractor, grantee, or recipient is an employer; 
and 
(II) any professional membership organization, 
certification or other professional body, any agent 
or licensee of the Federal government, or any per-
son acting directly or indirectly in the interest 
of an employer receiving covered funds; or 
(ii) with respect to covered funds received by a 
State or local government, the State or local govern-
ment receiving the funds and any contractor or subcon-
tractor of the State or local government; and 
(B) does not mean any department, agency, or other 
entity of the Federal Government. 
(5) STATE
OR
LOCAL
GOVERNMENT.—The term ‘‘State or 
local government’’ means— 
(A) the government of each of the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, 
Guam, American Samoa, the Virgin Islands, the Common-
wealth of the Northern Mariana Islands, or any other 
territory or possession of the United States; or 
(B) the government of any political subdivision of a 
government listed in subparagraph (A). 
SEC. 1554. SPECIAL CONTRACTING PROVISIONS. 
To the maximum extent possible, contracts funded under this 
Act shall be awarded as fixed-price contracts through the use of 
competitive procedures. A summary of any contract awarded with 
such funds that is not fixed-price and not awarded using competitive 
procedures shall be posted in a special section of the website estab-
lished in section 1526. 
TITLE XVI—GENERAL PROVISIONS—THIS ACT 
RELATIONSHIP TO OTHER APPROPRIATIONS 
SEC. 1601. Each amount appropriated or made available in 
this Act is in addition to amounts otherwise appropriated for the 
fiscal year involved. Enactment of this Act shall have no effect 
on the availability of amounts under the Continuing Appropriations 
Resolution, 2009 (division A of Public Law 110–329). 
PREFERENCE FOR QUICK-START ACTIVITIES 
SEC. 1602. In using funds made available in this Act for infra-
structure investment, recipients shall give preference to activities 
that can be started and completed expeditiously, including a goal 
of using at least 50 percent of the funds for activities that can 
be initiated not later than 120 days after the date of the enactment 
of this Act. Recipients shall also use grant funds in a manner 
that maximizes job creation and economic benefit. 
PERIOD OF AVAILABILITY 
SEC. 1603. All funds appropriated in this Act shall remain 
available for obligation until September 30, 2010, unless expressly 
provided otherwise in this Act.
H. R. 1—189 
LIMIT ON FUNDS 
SEC. 1604. None of the funds appropriated or otherwise made 
available in this Act may be used by any State or local government, 
or any private entity, for any casino or other gambling establish-
ment, aquarium, zoo, golf course, or swimming pool. 
BUY AMERICAN 
SEC. 1605. USE OF AMERICAN IRON, STEEL, AND MANUFACTURED 
GOODS. (a) None of the funds appropriated or otherwise made 
available by this Act may be used for a project for the construction, 
alteration, maintenance, or repair of a public building or public 
work unless all of the iron, steel, and manufactured goods used 
in the project are produced in the United States. 
(b) Subsection (a) shall not apply in any case or category 
of cases in which the head of the Federal department or agency 
involved finds that— 
(1) applying subsection (a) would be inconsistent with the 
public interest; 
(2) iron, steel, and the relevant manufactured goods are 
not produced in the United States in sufficient and reasonably 
available quantities and of a satisfactory quality; or 
(3) inclusion of iron, steel, and manufactured goods pro-
duced in the United States will increase the cost of the overall 
project by more than 25 percent. 
(c) If the head of a Federal department or agency determines 
that it is necessary to waive the application of subsection (a) based 
on a finding under subsection (b), the head of the department 
or agency shall publish in the Federal Register a detailed written 
justification as to why the provision is being waived. 
(d) This section shall be applied in a manner consistent with 
United States obligations under international agreements. 
WAGE RATE REQUIREMENTS 
SEC. 1606. Notwithstanding any other provision of law and 
in a manner consistent with other provisions in this Act, all laborers 
and mechanics employed by contractors and subcontractors on 
projects funded directly by or assisted in whole or in part by 
and through the Federal Government pursuant to this Act shall 
be paid wages at rates not less than those prevailing on projects 
of a character similar in the locality as determined by the Secretary 
of Labor in accordance with subchapter IV of chapter 31 of title 
40, United States Code. With respect to the labor standards speci-
fied in this section, the Secretary of Labor shall have the authority 
and functions set forth in Reorganization Plan Numbered 14 of 
1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, 
United States Code. 
ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF 
APPROPRIATE USE OF FUNDS 
SEC. 1607. (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: (1) the State will request and use funds provided 
by this Act; and (2) the funds will be used to create jobs and 
promote economic growth.
H. R. 1—190 
(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. 
ECONOMIC STABILIZATION CONTRACTING 
SEC. 1608. REFORM
OF CONTRACTING PROCEDURES UNDER 
EESA. Section 107(b) of the Emergency Economic Stabilization 
Act of 2008 (12 U.S.C. 5217(b)) is amended by inserting ‘‘and 
individuals with disabilities and businesses owned by individuals 
with disabilities (for purposes of this subsection the term ‘individual 
with disability’ has the same meaning as the term ‘handicapped 
individual’ as that term is defined in section 3(f) of the Small 
Business Act (15 U.S.C. 632(f)),’’ after ‘‘(12 U.S.C. 1441a(r)(4)),’’. 
SEC. 1609. (a) FINDINGS.— 
(1) The National Environmental Policy Act protects public 
health, safety and environmental quality: by ensuring trans-
parency, accountability and public involvement in federal 
actions and in the use of public funds; 
(2) When President Nixon signed the National Environ-
mental Policy Act into law on January 1, 1970, he said that 
the Act provided the ‘‘direction’’ for the country to ‘‘regain 
a productive harmony between man and nature’’; 
(3) The National Environmental Policy Act helps to provide 
an orderly process for considering federal actions and funding 
decisions and prevents ligation and delay that would otherwise 
be inevitable and existed prior to the establishment of the 
National Environmental Policy Act. 
(b) Adequate resources within this bill must be devoted to 
ensuring that applicable environmental reviews under the National 
Environmental Policy Act are completed on an expeditious basis 
and that the shortest existing applicable process under the National 
Environmental Policy Act shall be utilized. 
(c) The President shall report to the Senate Environment and 
Public Works Committee and the House Natural Resources Com-
mittee every 90 days following the date of enactment until Sep-
tember 30, 2011 on the status and progress of projects and activities 
funded by this Act with respect to compliance with National 
Environmental Policy Act requirements and documentation. 
SEC. 1610. (a) None of the funds appropriated or otherwise 
made available by this Act, for projects initiated after the effective 
date of this Act, may be used by an executive agency to enter 
into any Federal contract unless such contract is entered into in 
accordance with the Federal Property and Administrative Services 
Act (41 U.S.C. 253) or chapter 137 of title 10, United States Code, 
and the Federal Acquisition Regulation, unless such contract is 
otherwise authorized by statute to be entered into without regard 
to the above referenced statutes. 
(b) All projects to be conducted under the authority of the 
Indian Self-Determination and Education Assistance Act, the Trib-
ally-Controlled Schools Act, the Sanitation and Facilities Act, the
H. R. 1—191 
Native American Housing and Self-Determination Assistance Act 
and the Buy-Indian Act shall be identified by the appropriate Sec-
retary and the appropriate Secretary shall incorporate provisions 
to ensure that the agreement conforms with the provisions of this 
Act regarding the timing for use of funds and transparency, over-
sight, reporting, and accountability, including review by the Inspec-
tors General, the Accountability and Transparency Board, and 
Government Accountability Office, consistent with the objectives 
of this Act. 
SEC. 1611. HIRING
AMERICAN
WORKERS
IN
COMPANIES 
RECEIVING TARP FUNDING. (a) SHORT TITLE.—This section may 
be cited as the ‘‘Employ American Workers Act’’. 
(b) PROHIBITION.— 
(1) IN GENERAL.—Notwithstanding any other provision of 
law, it shall be unlawful for any recipient of funding under 
title I of the Emergency Economic Stabilization Act of 2008 
(Public Law 110–343) or section 13 of the Federal Reserve 
Act (12 U.S.C. 342 et seq.) to hire any nonimmigrant described 
in section 101(a)(15)(h)(i)(b) of the Immigration and Nationality 
Act (8 U.S.C. 1101(a)(15)(h)(i)(b)) unless the recipient is in 
compliance with the requirements for an H–1B dependent 
employer (as defined in section 212(n)(3) of such Act (8 U.S.C. 
1182(n)(3))), except that the second sentence of section 
212(n)(1)(E)(ii) of such Act shall not apply. 
(2) DEFINED
TERM.—In this subsection, the term ‘‘hire’’ 
means to permit a new employee to commence a period of 
employment. 
(c) SUNSET PROVISION.—This section shall be effective during 
the 2-year period beginning on the date of the enactment of this 
Act. 
SEC. 1612. During the current fiscal year not to exceed 1 
percent of any appropriation made available by this Act may be 
transferred by an agency head between such appropriations funded 
in this Act of that department or agency: Provided, That such 
appropriations shall be merged with and available for the same 
purposes, and for the same time period, as the appropriation to 
which transferred: Provided further, That the agency head shall 
notify the Committees on Appropriations of the Senate and House 
of Representatives of the transfer 15 days in advance: Provided 
further, That notice of any transfer made pursuant to this authority 
be posted on the website established by the Recovery Act Account-
ability and Transparency Board 15 days following such transfer: 
Provided further, That the authority contained in this section is 
in addition to transfer authorities otherwise available under current 
law: Provided further, That the authority provided in this section 
shall not apply to any appropriation that is subject to transfer 
provisions included elsewhere in this Act.
H. R. 1—192 
DIVISION 
B—TAX, 
UNEMPLOYMENT, 
HEALTH, STATE FISCAL RELIEF, AND 
OTHER PROVISIONS 
TITLE I—TAX PROVISIONS 
SEC. 1000. SHORT TITLE, ETC. 
(a) SHORT TITLE.—This title may be cited as the ‘‘American 
Recovery and Reinvestment Tax Act of 2009’’. 
(b) REFERENCE.—Except as otherwise expressly provided, when-
ever 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. 
(c) TABLE OF CONTENTS.—The table of contents for this title 
is as follows: 
TITLE I—TAX PROVISIONS 
Sec. 1000. Short title, etc. 
Subtitle A—Tax Relief for Individuals and Families 
PART I—GENERAL TAX RELIEF 
Sec. 1001. Making work pay credit. 
Sec. 1002. Temporary increase in earned income tax credit. 
Sec. 1003. Temporary increase of refundable portion of child credit. 
Sec. 1004. American opportunity tax credit. 
Sec. 1005. Computer technology and equipment allowed as a qualified higher edu-
cation expense for section 529 accounts in 2009 and 2010. 
Sec. 1006. Extension of and increase in first-time homebuyer credit; waiver of re-
quirement to repay. 
Sec. 1007. Suspension of tax on portion of unemployment compensation. 
Sec. 1008. Additional deduction for State sales tax and excise tax on the purchase 
of certain motor vehicles. 
PART II—ALTERNATIVE MINIMUM TAX RELIEF 
Sec. 1011. Extension of alternative minimum tax relief for nonrefundable personal 
credits. 
Sec. 1012. Extension of increased alternative minimum tax exemption amount. 
Subtitle B—Energy Incentives 
PART I—RENEWABLE ENERGY INCENTIVES 
Sec. 1101. Extension of credit for electricity produced from certain renewable re-
sources. 
Sec. 1102. Election of investment credit in lieu of production credit. 
Sec. 1103. Repeal of certain limitations on credit for renewable energy property. 
Sec. 1104. Coordination with renewable energy grants. 
PART II—INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND 
QUALIFIED ENERGY CONSERVATION BONDS 
Sec. 1111. Increased limitation on issuance of new clean renewable energy bonds. 
Sec. 1112. Increased limitation on issuance of qualified energy conservation bonds. 
PART III—ENERGY CONSERVATION INCENTIVES 
Sec. 1121. Extension and modification of credit for nonbusiness energy property. 
Sec. 1122. Modification of credit for residential energy efficient property. 
Sec. 1123. Temporary increase in credit for alternative fuel vehicle refueling prop-
erty. 
PART IV—MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION 
Sec. 1131. Application of monitoring requirements to carbon dioxide used as a ter-
tiary injectant.
H. R. 1—193 
PART V—PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES 
Sec. 1141. Credit for new qualified plug-in electric drive motor vehicles. 
Sec. 1142. Credit for certain plug-in electric vehicles. 
Sec. 1143. Conversion kits. 
Sec. 1144. Treatment of alternative motor vehicle credit as a personal credit al-
lowed against AMT. 
PART VI—PARITY FOR TRANSPORTATION FRINGE BENEFITS 
Sec. 1151. Increased exclusion amount for commuter transit benefits and transit 
passes. 
Subtitle C—Tax Incentives for Business 
PART I—TEMPORARY INVESTMENT INCENTIVES 
Sec. 1201. Special allowance for certain property acquired during 2009. 
Sec. 1202. Temporary increase in limitations on expensing of certain depreciable 
business assets. 
PART II—SMALL BUSINESS PROVISIONS 
Sec. 1211. 5-year carryback of operating losses of small businesses. 
Sec. 1212. Decreased required estimated tax payments in 2009 for certain small 
businesses. 
PART III—INCENTIVES FOR NEW JOBS 
Sec. 1221. Incentives to hire unemployed veterans and disconnected youth. 
PART IV—RULES RELATING TO DEBT INSTRUMENTS 
Sec. 1231. Deferral and ratable inclusion of income arising from business indebted-
ness discharged by the reacquisition of a debt instrument. 
Sec. 1232. Modifications of rules for original issue discount on certain high yield ob-
ligations. 
PART V—QUALIFIED SMALL BUSINESS STOCK 
Sec. 1241. Special rules applicable to qualified small business stock for 2009 and 
2010. 
PART VI—S CORPORATIONS 
Sec. 1251. Temporary reduction in recognition period for built-in gains tax. 
PART VII—RULES RELATING TO OWNERSHIP CHANGES 
Sec. 1261. Clarification of regulations related to limitations on certain built-in 
losses following an ownership change. 
Sec. 1262. Treatment of certain ownership changes for purposes of limitations on 
net operating loss carryforwards and certain built-in losses. 
Subtitle D—Manufacturing Recovery Provisions 
Sec. 1301. Temporary expansion of availability of industrial development bonds to 
facilities manufacturing intangible property. 
Sec. 1302. Credit for investment in advanced energy facilities. 
Subtitle E—Economic Recovery Tools 
Sec. 1401. Recovery zone bonds. 
Sec. 1402. Tribal economic development bonds. 
Sec. 1403. Increase in new markets tax credit. 
Sec. 1404. Coordination of low-income housing credit and low-income housing 
grants. 
Subtitle F—Infrastructure Financing Tools 
PART I—IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS 
Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of fi-
nancial institutions. 
Sec. 1502. Modification of small issuer exception to tax-exempt interest expense al-
location rules for financial institutions. 
Sec. 1503. Temporary modification of alternative minimum tax limitations on tax- 
exempt bonds. 
Sec. 1504. Modification to high speed intercity rail facility bonds. 
PART II—DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT 
CONTRACTORS 
Sec. 1511. Delay in application of withholding tax on government contractors.
H. R. 1—194 
PART III—TAX CREDIT BONDS FOR SCHOOLS 
Sec. 1521. Qualified school construction bonds. 
Sec. 1522. Extension and expansion of qualified zone academy bonds. 
PART IV—BUILD AMERICA BONDS 
Sec. 1531. Build America bonds. 
PART V—REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT 
BOND CREDITS 
Sec. 1541. Regulated investment companies allowed to pass-thru tax credit bond 
credits. 
Subtitle G—Other Provisions 
Sec. 1601. Application of certain labor standards to projects financed with certain 
tax-favored bonds. 
Sec. 1602. Grants to States for low-income housing projects in lieu of low-income 
housing credit allocations for 2009. 
Sec. 1603. Grants for specified energy property in lieu of tax credits. 
Sec. 1604. Increase in public debt limit. 
Subtitle H—Prohibition on Collection of Certain Payments Made Under the 
Continued Dumping and Subsidy Offset Act of 2000 
Sec. 1701. Prohibition on collection of certain payments made under the Continued 
Dumping and Subsidy Offset Act of 2000. 
Subtitle I—Trade Adjustment Assistance 
Sec. 1800. Short title. 
PART I—TRADE ADJUSTMENT ASSISTANCE FOR WORKERS 
SUBPART A—TRADE ADJUSTMENT ASSISTANCE FOR SERVICE SECTOR WORKERS 
Sec. 1801. Extension of trade adjustment assistance to service sector and public 
agency workers; shifts in production. 
Sec. 1802. Separate basis for certification. 
Sec. 1803. Determinations by Secretary of Labor. 
Sec. 1804. Monitoring and reporting relating to service sector. 
SUBPART B—INDUSTRY NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE 
DETERMINATIONS 
Sec. 1811. Notifications following certain affirmative determinations. 
Sec. 1812. Notification to Secretary of Commerce. 
SUBPART C—PROGRAM BENEFITS 
Sec. 1821. Qualifying Requirements for Workers. 
Sec. 1822. Weekly amounts. 
Sec. 1823. Limitations on trade readjustment allowances; allowances for extended 
training and breaks in training. 
Sec. 1824. Special rules for calculation of eligibility period. 
Sec. 1825. Application of State laws and regulations on good cause for waiver of 
time limits or late filing of claims. 
Sec. 1826. Employment and case management services. 
Sec. 1827. Administrative expenses and employment and case management serv-
ices. 
Sec. 1828. Training funding. 
Sec. 1829. Prerequisite education; approved training programs. 
Sec. 1830. Pre-layoff and part-time training. 
Sec. 1831. On-the-job training. 
Sec. 1832. Eligibility for unemployment insurance and program benefits while in 
training. 
Sec. 1833. Job search and relocation allowances. 
SUBPART D—REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM 
Sec. 1841. Reemployment trade adjustment assistance program. 
SUBPART E—OTHER MATTERS 
Sec. 1851. Office of Trade Adjustment Assistance. 
Sec. 1852. Accountability of State agencies; collection and publication of program 
data; agreements with States.
H. R. 1—195 
Sec. 1853. Verification of eligibility for program benefits. 
Sec. 1854. Collection of data and reports; information to workers. 
Sec. 1855. Fraud and recovery of overpayments. 
Sec. 1856. Sense of Congress on application of trade adjustment assistance. 
Sec. 1857. Consultations in promulgation of regulations. 
Sec. 1858. Technical corrections. 
PART II—TRADE ADJUSTMENT ASSISTANCE FOR FIRMS 
Sec. 1861. Expansion to service sector firms. 
Sec. 1862. Modification of requirements for certification. 
Sec. 1863. Basis for determinations. 
Sec. 1864. Oversight and administration; authorization of appropriations. 
Sec. 1865. Increased penalties for false statements. 
Sec. 1866. Annual report on trade adjustment assistance for firms. 
Sec. 1867. Technical corrections. 
PART III—TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES 
Sec. 1871. Purpose. 
Sec. 1872. Trade adjustment assistance for communities. 
Sec. 1873. Conforming amendments. 
PART IV—TRADE ADJUSTMENT ASSISTANCE FOR FARMERS 
Sec. 1881. Definitions. 
Sec. 1882. Eligibility. 
Sec. 1883. Benefits. 
Sec. 1884. Report. 
Sec. 1885. Fraud and recovery of overpayments. 
Sec. 1886. Determination of increases of imports for certain fishermen. 
Sec. 1887. Extension of trade adjustment assistance for farmers. 
PART V—GENERAL PROVISIONS 
Sec. 1891. Effective date. 
Sec. 1892. Extension of trade adjustment assistance programs. 
Sec. 1893. Termination; related provisions. 
Sec. 1894. Government Accountability Office report. 
Sec. 1895. Emergency designation. 
PART VI—HEALTH COVERAGE IMPROVEMENT 
Sec. 1899. Short title. 
Sec. 1899A. Improvement of the affordability of the credit. 
Sec. 1899B. Payment for monthly premiums paid prior to commencement of ad-
vance payments of credit. 
Sec. 1899C. TAA recipients not enrolled in training programs eligible for credit. 
Sec. 1899D. TAA pre-certification period rule for purposes of determining whether 
there is a 63-day lapse in creditable coverage. 
Sec. 1899E. Continued qualification of family members after certain events. 
Sec. 1899F. Extension of COBRA benefits for certain TAA-eligible individuals and 
PBGC recipients. 
Sec. 1899G. Addition of coverage through voluntary employees’ beneficiary associa-
tions. 
Sec. 1899H. Notice requirements. 
Sec. 1899I. Survey and report on enhanced health coverage tax credit program. 
Sec. 1899J. Authorization of appropriations. 
Sec. 1899K. Extension of national emergency grants. 
Sec. 1899L. GAO study and report. 
Subtitle A—Tax Relief for Individuals and 
Families 
PART I—GENERAL TAX RELIEF 
SEC. 1001. MAKING WORK PAY CREDIT. 
(a) IN GENERAL.—Subpart C of part IV of subchapter A of 
chapter 1 is amended by inserting after section 36 the following 
new section: 
‘‘SEC. 36A. MAKING WORK PAY CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eligible indi-
vidual, there shall be allowed as a credit against the tax imposed
H. R. 1—196 
by this subtitle for the taxable year an amount equal to the lesser 
of— 
‘‘(1) 6.2 percent of earned income of the taxpayer, or 
‘‘(2) $400 ($800 in the case of a joint return). 
‘‘(b) LIMITATION
BASED
ON
MODIFIED
ADJUSTED
GROSS 
INCOME.— 
‘‘(1) IN GENERAL.—The amount allowable as a credit under 
subsection (a) (determined without regard to this paragraph 
and subsection (c)) for the taxable year shall be reduced (but 
not below zero) by 2 percent of so much of the taxpayer’s 
modified adjusted gross income as exceeds $75,000 ($150,000 
in the case of a joint return). 
‘‘(2) MODIFIED ADJUSTED GROSS INCOME.—For purposes of 
subparagraph (A), the term ‘modified adjusted gross income’ 
means the adjusted gross income of the taxpayer for the taxable 
year increased by any amount excluded from gross income 
under section 911, 931, or 933. 
‘‘(c) REDUCTION FOR CERTAIN OTHER PAYMENTS.—The credit 
allowed under subsection (a) for any taxable year shall be reduced 
by the amount of any payments received by the taxpayer during 
such taxable year under section 2201, and any credit allowed to 
the taxpayer under section 2202, of the American Recovery and 
Reinvestment Tax Act of 2009. 
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For purposes of this 
section— 
‘‘(1) ELIGIBLE INDIVIDUAL.— 
‘‘(A) IN GENERAL.—The term ‘eligible individual’ means 
any individual other than— 
‘‘(i) any nonresident alien individual, 
‘‘(ii) any individual with respect to whom a deduc-
tion under section 151 is allowable to another taxpayer 
for a taxable year beginning in the calendar year in 
which the individual’s taxable year begins, and 
‘‘(iii) an estate or trust. 
‘‘(B) IDENTIFICATION
NUMBER
REQUIREMENT.—Such 
term shall not include any individual who does not include 
on the return of tax for the taxable year— 
‘‘(i) such individual’s social security account 
number, and 
‘‘(ii) in the case of a joint return, the social security 
account number of one of the taxpayers on such return. 
For purposes of the preceding sentence, the social security 
account number shall not include a TIN issued by the 
Internal Revenue Service. 
‘‘(2) EARNED INCOME.—The term ‘earned income’ has the 
meaning given such term by section 32(c)(2), except that such 
term shall not include net earnings from self-employment which 
are not taken into account in computing taxable income. For 
purposes of the preceding sentence, any amount excluded from 
gross income by reason of section 112 shall be treated as 
earned income which is taken into account in computing taxable 
income for the taxable year. 
‘‘(e) TERMINATION.—This section shall not apply to taxable years 
beginning after December 31, 2010.’’. 
(b) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.—
H. R. 1—197 
(A) MIRROR CODE POSSESSION.—The Secretary of the 
Treasury shall pay to each possession of the United States 
with a mirror code tax system amounts equal to the loss 
to that possession by reason of the amendments made 
by this section with respect to taxable years beginning 
in 2009 and 2010. Such amounts shall be determined by 
the Secretary of the Treasury based on information pro-
vided by the government of the respective possession. 
(B) 
OTHER
POSSESSIONS.—The 
Secretary 
of 
the 
Treasury shall pay to each possession of the United States 
which does not have a mirror code tax system amounts 
estimated by the Secretary of the Treasury as being equal 
to the aggregate benefits that would have been provided 
to residents of such possession by reason of the amend-
ments made by this section for taxable years beginning 
in 2009 and 2010 if a mirror code tax system had been 
in effect in such possession. The preceding sentence shall 
not apply with respect to any possession of the United 
States unless such possession has a plan, which has been 
approved by the Secretary of the Treasury, under which 
such possession will promptly distribute such payments 
to the residents of such possession. 
(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED 
STATES
INCOME
TAXES.—No credit shall be allowed against 
United States income taxes for any taxable year under section 
36A of the Internal Revenue Code of 1986 (as added by this 
section) to any person— 
(A) to whom a credit is allowed against taxes imposed 
by the possession by reason of the amendments made by 
this section for such taxable year, or 
(B) who is eligible for a payment under a plan described 
in paragraph (1)(B) with respect to such taxable year. 
(3) DEFINITIONS AND SPECIAL RULES.— 
(A) POSSESSION OF THE UNITED STATES.—For purposes 
of this subsection, the term ‘‘possession of the United 
States’’ includes the Commonwealth of Puerto Rico and 
the Commonwealth of the Northern Mariana Islands. 
(B) MIRROR CODE TAX SYSTEM.—For purposes of this 
subsection, the term ‘‘mirror code tax system’’ means, with 
respect to any possession of the United States, the income 
tax system of such possession if the income tax liability 
of the residents of such possession under such system is 
determined by reference to the income tax laws of the 
United States as if such possession were the United States. 
(C) TREATMENT OF PAYMENTS.—For purposes of section 
1324(b)(2) of title 31, United States Code, the payments 
under this subsection shall be treated in the same manner 
as a refund due from the credit allowed under section 
36A of the Internal Revenue Code of 1986 (as added by 
this section). 
(c) REFUNDS DISREGARDED IN THE ADMINISTRATION OF FEDERAL 
PROGRAMS
AND FEDERALLY ASSISTED PROGRAMS.—Any credit or 
refund allowed or made to any individual by reason of section 
36A of the Internal Revenue Code of 1986 (as added by this section) 
or by reason of subsection (b) of this section shall not be taken 
into account as income and shall not be taken into account as 
resources for the month of receipt and the following 2 months,
H. R. 1—207 
(C) Section 48A(b)(2) is amended by inserting ‘‘(without 
regard to subparagraph (D) thereof)’’ after ‘‘section 
48(a)(4)’’. 
(D) Section 48B(b)(2) is amended by inserting ‘‘(without 
regard to subparagraph (D) thereof)’’ after ‘‘section 
48(a)(4)’’. 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendment made by this section shall apply to periods after 
December 31, 2008, under rules similar to the rules of section 
48(m) of the Internal Revenue Code of 1986 (as in effect on 
the day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990). 
(2) CONFORMING AMENDMENTS.—The amendments made by 
subparagraphs (A) and (B) of subsection (b)(2) shall apply to 
taxable years beginning after December 31, 2008. 
SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS. 
Section 48 is amended by adding at the end the following 
new subsection: 
‘‘(d) COORDINATION WITH DEPARTMENT OF TREASURY GRANTS.— 
In the case of any property with respect to which the Secretary 
makes a grant under section 1603 of the American Recovery and 
Reinvestment Tax Act of 2009— 
‘‘(1) DENIAL OF PRODUCTION AND INVESTMENT CREDITS.— 
No credit shall be determined under this section or section 
45 with respect to such property for the taxable year in which 
such grant is made or any subsequent taxable year. 
‘‘(2) RECAPTURE OF CREDITS FOR PROGRESS EXPENDITURES 
MADE BEFORE GRANT.—If a credit was determined under this 
section with respect to such property for any taxable year 
ending before such grant is made— 
‘‘(A) the tax imposed under subtitle A on the taxpayer 
for the taxable year in which such grant is made shall 
be increased by so much of such credit as was allowed 
under section 38, 
‘‘(B) the general business carryforwards under section 
39 shall be adjusted so as to recapture the portion of 
such credit which was not so allowed, and 
‘‘(C) the amount of such grant shall be determined 
without regard to any reduction in the basis of such prop-
erty by reason of such credit. 
‘‘(3) TREATMENT OF GRANTS.—Any such grant shall— 
‘‘(A) not be includible in the gross income of the tax-
payer, but 
‘‘(B) shall be taken into account in determining the 
basis of the property to which such grant relates, except 
that the basis of such property shall be reduced under 
section 50(c) in the same manner as a credit allowed under 
subsection (a).’’.
H. R. 1—251 
(1) QUALIFIED
FACILITIES.—Any qualified property (as 
defined in section 48(a)(5)(D) of the Internal Revenue Code 
of 1986) which is part of a qualified facility (within the meaning 
of section 45 of such Code) described in paragraph (1), (2), 
(3), (4), (6), (7), (9), or (11) of section 45(d) of such Code. 
(2) QUALIFIED FUEL CELL PROPERTY.—Any qualified fuel 
cell property (as defined in section 48(c)(1) of such Code). 
(3) SOLAR
PROPERTY.—Any property described in clause 
(i) or (ii) of section 48(a)(3)(A) of such Code. 
(4) QUALIFIED SMALL WIND ENERGY PROPERTY.—Any quali-
fied small wind energy property (as defined in section 48(c)(4) 
of such Code). 
(5) GEOTHERMAL
PROPERTY.—Any property described in 
clause (iii) of section 48(a)(3)(A) of such Code. 
(6) QUALIFIED
MICROTURBINE
PROPERTY.—Any qualified 
microturbine property (as defined in section 48(c)(2) of such 
Code). 
(7) COMBINED HEAT AND POWER SYSTEM PROPERTY.—Any 
combined heat and power system property (as defined in section 
48(c)(3) of such Code). 
(8) GEOTHERMAL
HEAT
PUMP
PROPERTY.—Any property 
described in clause (vii) of section 48(a)(3)(A) of such Code. 
Such term shall not include any property unless depreciation (or 
amortization in lieu of depreciation) is allowable with respect to 
such property. 
(e) CREDIT TERMINATION DATE.—For purposes of this section, 
the term ‘‘credit termination date’’ means— 
(1) in the case of any specified energy property which 
is part of a facility described in paragraph (1) of section 45(d) 
of the Internal Revenue Code of 1986, January 1, 2013, 
(2) in the case of any specified energy property which 
is part of a facility described in paragraph (2), (3), (4), (6), 
(7), (9), or (11) of section 45(d) of such Code, January 1, 2014, 
and 
(3) in the case of any specified energy property described 
in section 48 of such Code, January 1, 2017. 
In the case of any property which is described in paragraph (3) 
and also in another paragraph of this subsection, paragraph (3) 
shall apply with respect to such property. 
(f) APPLICATION OF CERTAIN RULES.—In making grants under 
this section, the Secretary of the Treasury shall apply rules similar 
to the rules of section 50 of the Internal Revenue Code of 1986. 
In applying such rules, if the property is disposed of, or otherwise 
ceases to be specified energy property, the Secretary of the Treasury 
shall provide for the recapture of the appropriate percentage of 
the grant amount in such manner as the Secretary of the Treasury 
determines appropriate. 
(g) EXCEPTION FOR CERTAIN NON-TAXPAYERS.—The Secretary 
of the Treasury shall not make any grant under this section to— 
(1) any Federal, State, or local government (or any political 
subdivision, agency, or instrumentality thereof), 
(2) any organization described in section 501(c) of the 
Internal Revenue Code of 1986 and exempt from tax under 
section 501(a) of such Code, 
(3) any entity referred to in paragraph (4) of section 54(j) 
of such Code, or
H. R. 1—262 
(A) by striking ‘‘later of the dates specified in subclause 
(I) or (II)’’ and inserting ‘‘date specified in subclause (I) 
or (II), as the case may be’’; and 
(B) by striking ‘‘or’’ at the end; 
(3) by redesignating subclause (IV) as subclause (V); and 
(4) by inserting after subclause (III) the following: 
‘‘(IV) in the case of a worker who fails to enroll 
by the date required by subclause (I), (II), or (III), 
as the case may be, due to the failure to provide 
the worker with timely information regarding the date 
specified in such subclause, the last day of a period 
determined by the Secretary, or’’. 
(b) WAIVERS OF TRAINING REQUIREMENTS.—Section 231(c) of 
the Trade Act of 1974 (19 U.S.C. 2291(c)) is amended— 
(1) in paragraph (1)(B)— 
(A) by striking ‘‘The worker possesses’’ and inserting 
the following: 
‘‘(i) IN GENERAL.—The worker possesses’’; and 
(B) by adding at the end the following: 
‘‘(ii) MARKETABLE SKILLS DEFINED.—For purposes 
of clause (i), the term ‘marketable skills’ may include 
the possession of a postgraduate degree from an 
institution of higher education (as defined in section 
102 of the Higher Education Act of 1965 (20 U.S.C. 
1002)) or an equivalent institution, or the possession 
of an equivalent postgraduate certification in a special-
ized field.’’; 
(2) in paragraph (2)(A), by striking ‘‘A waiver’’ and inserting 
‘‘Except as provided in paragraph (3)(B), a waiver’’; and 
(3) in paragraph (3)— 
(A) in subparagraph (A), by striking ‘‘Pursuant to an 
agreement under section 239, the Secretary may authorize 
a’’ and inserting ‘‘An agreement under section 239 shall 
authorize a’’; 
(B) by redesignating subparagraph (B) as subpara-
graph (C); and 
(C) by inserting after subparagraph (A) the following: 
‘‘(B) REVIEW OF WAIVERS.—An agreement under section 
239 shall require a cooperating State to review each waiver 
issued by the State under subparagraph (A), (B), (D), (E), 
or (F) of paragraph (1)— 
‘‘(i) 3 months after the date on which the State 
issues the waiver; and 
‘‘(ii) on a monthly basis thereafter.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 231 of the Trade Act of 1974 (19 U.S.C. 2291), 
as amended, is further amended— 
(A) in subsection (a), in the matter preceding paragraph 
(1), by striking ‘‘more than 60 days’’ and all that follows 
through ‘‘section 221’’ and inserting ‘‘on or after the date 
of such certification’’; and 
(B) in subsection (b)— 
(i) by striking paragraph (2); and 
(ii) in paragraph (1)— 
(I) by striking ‘‘(1)’’; 
(II) by redesignating subparagraphs (A) and 
(B) as paragraphs (1) and (2), respectively;
H. R. 1—263 
(III) by redesignating clauses (i) and (ii) as 
subparagraphs (A) and (B), respectively; and 
(IV) by redesignating subclauses (I) and (II) 
as clauses (i) and (ii), respectively. 
(2) Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) 
is amended— 
(A) by striking subsection (b); and 
(B) by redesignating subsections (c) through (g) as sub-
sections (b) through (f), respectively. 
SEC. 1822. WEEKLY AMOUNTS. 
Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is 
amended— 
(1) in subsection (a)— 
(A) by striking ‘‘subsections (b) and (c)’’ and inserting 
‘‘subsections (b), (c), and (d)’’; 
(B) by striking ‘‘total unemployment’’ the first place 
it appears and inserting ‘‘unemployment’’; and 
(C) in paragraph (2), by inserting before the period 
the following: ‘‘, except that in the case of an adversely 
affected worker who is participating in training under this 
chapter, such income shall not include earnings from work 
for such week that are equal to or less than the most 
recent weekly benefit amount of the unemployment insur-
ance payable to the worker for a week of total unemploy-
ment preceding the worker’s first exhaustion of unemploy-
ment insurance (as determined for purposes of section 
231(a)(3)(B))’’; and 
(2) by adding at the end the following: 
‘‘(d) ELECTION
OF
TRADE
READJUSTMENT
ALLOWANCE
OR 
UNEMPLOYMENT INSURANCE.—Notwithstanding section 231(a)(3)(B), 
an adversely affected worker may elect to receive a trade readjust-
ment allowance instead of unemployment insurance during any 
week with respect to which the worker— 
‘‘(1) is entitled to receive unemployment insurance as a 
result of the establishment by the worker of a new benefit 
year under State law, based in whole or in part upon part- 
time or short-term employment in which the worker engaged 
after the worker’s most recent total separation from adversely 
affected employment; and 
‘‘(2) is otherwise entitled to a trade readjustment allow-
ance.’’. 
SEC. 1823. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; 
ALLOWANCES FOR EXTENDED TRAINING AND BREAKS 
IN TRAINING. 
Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) 
is amended— 
(1) in paragraph (2), by inserting ‘‘under paragraph (1)’’ 
after ‘‘trade readjustment allowance’’; and 
(2) in paragraph (3)— 
(A) in the matter preceding subparagraph (A)— 
(i) by striking ‘‘training approved for him’’ and 
inserting ‘‘a training program approved for the worker’’; 
(ii) by striking ‘‘52 additional weeks’’ and inserting 
‘‘78 additional weeks’’; and 
(iii) by striking ‘‘52-week’’ and inserting ‘‘91-week’’; 
and
H. R. 1—269 
‘‘(iii) apprenticeship programs registered under the Act 
of August 16, 1937 (commonly known as the ‘National 
Apprenticeship Act’; 50 Stat. 664, chapter 663; 29 U.S.C. 
50 et seq.),’’; 
(2) by redesignating subparagraphs (E) and (F) as subpara-
graphs (F) and (G), respectively; 
(3) by inserting after subparagraph (D) the following: 
‘‘(E) any program of prerequisite education or coursework 
required to enroll in training that may be approved under 
this section,’’; 
(4) in subparagraph (F)(ii), as redesignated by paragraph 
(2), by striking ‘‘and’’ at the end; 
(5) in subparagraph (G), as redesignated by paragraph 
(2), by striking the period at the end and inserting ‘‘, and’’; 
and 
(6) by adding at the end the following: 
‘‘(H) any training program or coursework at an accredited 
institution of higher education (described in section 102 of 
the Higher Education Act of 1965 (20 U.S.C. 1002)), including 
a training program or coursework for the purpose of— 
‘‘(i) obtaining a degree or certification; or 
‘‘(ii) completing a degree or certification that the worker 
had previously begun at an accredited institution of higher 
education. 
The Secretary may not limit approval of a training program under 
paragraph (1) to a program provided pursuant to title I of the 
Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).’’. 
(b) CONFORMING AMENDMENTS.—Section 233 of the Trade Act 
of 1974 (19 U.S.C. 2293) is amended— 
(1) in subsection (a)(2), by inserting ‘‘prerequisite education 
or’’ after ‘‘requires a program of’’; and 
(2) in subsection (f) (as redesignated by section 1821(c) 
of this subtitle), by inserting ‘‘prerequisite education or’’ after 
‘‘includes a program of’’. 
(c) TECHNICAL CORRECTIONS.—Section 236 of the Trade Act 
of 1974 (19 U.S.C. 2296) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1), in the flush text, by striking 
‘‘his behalf’’ and inserting ‘‘the worker’s behalf’’; and 
(B) in paragraph (3), by striking ‘‘this paragraph (1)’’ 
and inserting ‘‘paragraph (1)’’; and 
(2) in subsection (b)(2), by striking ‘‘, and’’ and inserting 
a period. 
SEC. 1830. PRE-LAYOFF AND PART-TIME TRAINING. 
(a) PRE-LAYOFF TRAINING.— 
(1) IN GENERAL.—Section 236(a) of the Trade Act of 1974 
(19 U.S.C. 2296(a)) is amended— 
(A) in paragraph (1), by inserting after ‘‘determines’’ 
the following: ‘‘, with respect to an adversely affected 
worker or an adversely affected incumbent worker,’’; 
(B) in paragraph (4)— 
(i) in subparagraphs (A) and (B), by inserting ‘‘or 
an adversely affected incumbent worker’’ after ‘‘an 
adversely affected worker’’ each place it appears; and
H. R. 1—270 
(ii) in subparagraph (C), by inserting ‘‘or adversely 
affected incumbent worker’’ after ‘‘adversely affected 
worker’’ each place it appears; 
(C) in paragraph (5), in the matter preceding subpara-
graph (A), by striking ‘‘The training programs’’ and 
inserting ‘‘Except as provided in paragraph (10), the 
training programs’’; 
(D) in paragraph (6)(B), by inserting ‘‘or adversely 
affected incumbent worker’’ after ‘‘adversely affected 
worker’’; 
(E) in paragraph (7)(B), by inserting ‘‘or adversely 
affected incumbent worker’’ after ‘‘adversely affected 
worker’’; and 
(F) by inserting after paragraph (9) the following: 
‘‘(10) In the case of an adversely affected incumbent worker, 
the Secretary may not approve— 
‘‘(A) on-the-job training under paragraph (5)(A)(i); or 
‘‘(B) customized training under paragraph (5)(A)(ii), unless 
such training is for a position other than the worker’s adversely 
affected employment. 
‘‘(11) If the Secretary determines that an adversely affected 
incumbent worker for whom the Secretary approved training under 
this section is no longer threatened with a total or partial separa-
tion, the Secretary shall terminate the approval of such training.’’. 
(2) DEFINITIONS.—Section 247 of the Trade Act of 1974 
(19 U.S.C. 2319), as amended, is further amended by adding 
at the end the following: 
‘‘(19) The term ‘adversely affected incumbent worker’ means 
a worker who— 
‘‘(A) is a member of a group of workers who have 
been certified as eligible to apply for adjustment assistance 
under subchapter A; 
‘‘(B) has not been totally or partially separated from 
adversely affected employment; and 
‘‘(C) the Secretary determines, on an individual basis, 
is threatened with total or partial separation.’’. 
(b) PART-TIME TRAINING.—Section 236 of the Trade Act of 1974 
(19 U.S.C. 2296), as amended, is further amended by adding at 
the end the following: 
‘‘(h) PART-TIME TRAINING.— 
‘‘(1) IN
GENERAL.—The Secretary may approve full-time 
or part-time training for a worker under subsection (a). 
‘‘(2) LIMITATION.—Notwithstanding paragraph (1), a worker 
participating in part-time training approved under subsection 
(a) may not receive a trade readjustment allowance under sec-
tion 231.’’. 
SEC. 1831. ON-THE-JOB TRAINING. 
(a) IN GENERAL.—Section 236(c) of the Trade Act of 1974 (19 
U.S.C. 2296(c)) is amended— 
(1) by redesignating paragraphs (1) through (10) as sub-
paragraphs (A) through (J) and moving such subparagraphs 
2 ems to the right; 
(2) by striking ‘‘(c) The Secretary shall’’ and all that follows 
through ‘‘such costs,’’ and inserting the following: 
‘‘(c) ON-THE-JOB TRAINING REQUIREMENTS.—
H. R. 1—271 
‘‘(1) IN GENERAL.—The Secretary may approve on-the-job 
training for any adversely affected worker if— 
‘‘(A) the worker meets the requirements for training 
to be approved under subsection (a)(1); 
‘‘(B) 
the 
Secretary 
determines 
that 
on-the-job 
training— 
‘‘(i) can reasonably be expected to lead to suitable 
employment with the employer offering the on-the- 
job training; 
‘‘(ii) is compatible with the skills of the worker; 
‘‘(iii) includes a curriculum through which the 
worker will gain the knowledge or skills to become 
proficient in the job for which the worker is being 
trained; and 
‘‘(iv) can be measured by benchmarks that indicate 
that the worker is gaining such knowledge or skills; 
and 
‘‘(C) the State determines that the on-the-job training 
program meets the requirements of clauses (iii) and (iv) 
of subparagraph (B). 
‘‘(2) MONTHLY
PAYMENTS.—The Secretary shall pay the 
costs of on-the-job training approved under paragraph (1) in 
monthly installments. 
‘‘(3) CONTRACTS FOR ON-THE-JOB TRAINING.— 
‘‘(A) IN
GENERAL.—The Secretary shall ensure, in 
entering into a contract with an employer to provide on- 
the-job training to a worker under this subsection, that 
the skill requirements of the job for which the worker 
is being trained, the academic and occupational skill level 
of the worker, and the work experience of the worker 
are taken into consideration. 
‘‘(B) TERM OF CONTRACT.—Training under any such 
contract shall be limited to the period of time required 
for the worker receiving on-the-job training to become pro-
ficient in the job for which the worker is being trained, 
but may not exceed 104 weeks in any case. 
‘‘(4) EXCLUSION
OF
CERTAIN
EMPLOYERS.—The Secretary 
shall not enter into a contract for on-the-job training with 
an employer that exhibits a pattern of failing to provide workers 
receiving on-the-job training from the employer with— 
‘‘(A) continued, long-term employment as regular 
employees; and 
‘‘(B) wages, benefits, and working conditions that are 
equivalent to the wages, benefits, and working conditions 
provided to regular employees who have worked a similar 
period of time and are doing the same type of work as 
workers receiving on-the-job training from the employer. 
‘‘(5) LABOR STANDARDS.—The Secretary may pay the costs 
of on-the-job training,’’; and 
(3) in paragraph (5), as redesignated— 
(A) in subparagraph (I), as redesignated by paragraph 
(1) of this section, by striking ‘‘paragraphs (1), (2), (3), 
(4), (5), and (6)’’ and inserting ‘‘subparagraphs (A), (B), 
(C), (D), (E), and (F)’’; and 
(B) in subparagraph (J), as redesignated by paragraph 
(1) of this section, by striking ‘‘paragraph (8)’’ and inserting 
‘‘subparagraph (H)’’.
H. R. 1—272 
(b) REPEAL OF PREFERENCE FOR TRAINING ON THE JOB.—Section 
236(a)(1) of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is amended 
by striking the last sentence. 
SEC. 1832. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PRO-
GRAM BENEFITS WHILE IN TRAINING. 
Section 236(d) of the Trade Act of 1974 (19 U.S.C. 2296(d)) 
is amended to read as follows: 
‘‘(d) ELIGIBILITY.—An adversely affected worker may not be 
determined to be ineligible or disqualified for unemployment insur-
ance or program benefits under this subchapter— 
‘‘(1) because the worker— 
‘‘(A) is enrolled in training approved under subsection 
(a); 
‘‘(B) left work— 
‘‘(i) that was not suitable employment in order 
to enroll in such training; or 
‘‘(ii) that the worker engaged in on a temporary 
basis during a break in such training or a delay in 
the commencement of such training; or 
‘‘(C) left on-the-job training not later than 30 days 
after commencing such training because the training did 
not meet the requirements of subsection (c)(1)(B); or 
‘‘(2) because of the application to any such week in training 
of the provisions of State law or Federal unemployment insur-
ance law relating to availability for work, active search for 
work, or refusal to accept work.’’. 
SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES. 
(a) JOB SEARCH ALLOWANCES.—Section 237 of the Trade Act 
of 1974 (19 U.S.C. 2297) is amended— 
(1) in subsection (a)(2)(C)(ii), by striking ‘‘, unless the 
worker received a waiver under section 231(c)’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘90 percent of the 
cost of’’ and inserting ‘‘all’’; and 
(B) in paragraph (2), by striking ‘‘$1,250’’ and inserting 
‘‘$1,500’’. 
(b) RELOCATION ALLOWANCES.—Section 238 of the Trade Act 
of 1974 (19 U.S.C. 2298) is amended— 
(1) in subsection (a)(2)(E)(ii), by striking ‘‘, unless the 
worker received a waiver under section 231(c)’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by striking ‘‘90 percent of the’’ 
and inserting ‘‘all’’; and 
(B) in paragraph (2), by striking ‘‘$1,250’’ and inserting 
‘‘$1,500’’. 
Subpart D—Reemployment Trade Adjustment 
Assistance Program 
SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PRO-
GRAM. 
(a) IN GENERAL.—Section 246 of the Trade Act of 1974 (19 
U.S.C. 2318) is amended— 
(1) by amending the heading to read as follows:
H. R. 1—273 
‘‘SEC. 246. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PRO-
GRAM.’’; 
(2) in subsection (a)— 
(A) in paragraph (1)— 
(i) by striking ‘‘Not later than’’ and all that follows 
through ‘‘2002, the Secretary’’ and inserting ‘‘The Sec-
retary’’; and 
(ii) by striking ‘‘an alternative trade adjustment 
assistance program for older workers’’ and inserting 
‘‘a reemployment trade adjustment assistance pro-
gram’’; 
(B) in paragraph (2)— 
(i) in subparagraph (A)— 
(I) in the matter preceding clause (i), by 
striking ‘‘for a period not to exceed 2 years’’ and 
inserting ‘‘for the eligibility period under subpara-
graph (A) or (B) of paragraph (4) (as the case 
may be)’’; and 
(II) by striking clauses (i) and (ii) and inserting 
the following: 
‘‘(i) the wages received by the worker at the time 
of separation; and 
‘‘(ii) the wages received by the worker from 
reemployment.’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘for a period not to exceed 2 
years’’ and inserting ‘‘for the eligibility period 
under subparagraph (A) or (B) of paragraph (4) 
(as the case may be)’’; and 
(II) by striking ‘‘, as added by section 201 
of the Trade Act of 2002’’; and 
(iii) by adding at the end the following: 
‘‘(C) TRAINING
AND
OTHER
SERVICES.—A worker 
described in paragraph (3)(B) participating in the program 
established under paragraph (1) is eligible to receive 
training approved under section 236 and employment and 
case management services under section 235.’’; and 
(C) by striking paragraphs (3) through (5) and inserting 
the following: 
‘‘(3) ELIGIBILITY.— 
‘‘(A) IN GENERAL.—A group of workers certified under 
subchapter A as eligible for adjustment assistance under 
subchapter A is eligible for benefits described in paragraph 
(2) under the program established under paragraph (1). 
‘‘(B) INDIVIDUAL ELIGIBILITY.—A worker in a group of 
workers described in subparagraph (A) may elect to receive 
benefits described in paragraph (2) under the program 
established under paragraph (1) if the worker— 
‘‘(i) is at least 50 years of age; 
‘‘(ii) earns not more than $55,000 each year in 
wages from reemployment; 
‘‘(iii)(I) is employed on a full-time basis as defined 
by the law of the State in which the worker is employed 
and is not enrolled in a training program approved 
under section 236; or
H. R. 1—274 
‘‘(II) is employed at least 20 hours per week and 
is enrolled in a training program approved under sec-
tion 236; and 
‘‘(iv) is not employed at the firm from which the 
worker was separated. 
‘‘(4) ELIGIBILITY PERIOD FOR PAYMENTS.— 
‘‘(A) WORKER WHO HAS NOT RECEIVED TRADE READJUST-
MENT ALLOWANCE.—In the case of a worker described in 
paragraph (3)(B) who has not received a trade readjustment 
allowance under part I of subchapter B pursuant to the 
certification described in paragraph (3)(A), the worker may 
receive benefits described in paragraph (2) for a period 
not to exceed 2 years beginning on the earlier of— 
‘‘(i) the date on which the worker exhausts all 
rights to unemployment insurance based on the separa-
tion of the worker from the adversely affected employ-
ment that is the basis of the certification; or 
‘‘(ii) the date on which the worker obtains 
reemployment described in paragraph (3)(B). 
‘‘(B) WORKER WHO HAS RECEIVED TRADE READJUSTMENT 
ALLOWANCE.—In the case of a worker described in para-
graph (3)(B) who has received a trade readjustment allow-
ance under part I of subchapter B pursuant to the certifi-
cation described in paragraph (3)(A), the worker may 
receive benefits described in paragraph (2) for a period 
of 104 weeks beginning on the date on which the worker 
obtains reemployment described in paragraph (3)(B), 
reduced by the total number of weeks for which the worker 
received such trade readjustment allowance. 
‘‘(5) TOTAL AMOUNT OF PAYMENTS.— 
‘‘(A) IN GENERAL.—The payments described in para-
graph (2)(A) made to a worker may not exceed— 
‘‘(i) $12,000 per worker during the eligibility period 
under paragraph (4)(A); or 
‘‘(ii) the amount described in subparagraph (B) 
per worker during the eligibility period under para-
graph (4)(B). 
‘‘(B) AMOUNT
DESCRIBED.—The amount described in 
this subparagraph is the amount equal to the product 
of— 
‘‘(i) $12,000, and 
‘‘(ii) the ratio of— 
‘‘(I) the total number of weeks in the eligibility 
period under paragraph (4)(B) with respect to the 
worker, to 
‘‘(II) 104 weeks. 
‘‘(6) CALCULATION OF AMOUNT OF PAYMENTS FOR CERTAIN 
WORKERS.— 
‘‘(A) IN GENERAL.—In the case of a worker described 
in paragraph (3)(B)(iii)(II), paragraph (2)(A) shall be 
applied by substituting the percentage described in 
subparagraph (B) for ‘50 percent’. 
‘‘(B) 
PERCENTAGE
DESCRIBED.—The 
percentage 
described in this subparagraph is the percentage— 
‘‘(i) equal to 1⁄2 of the ratio of—
H. R. 1—294 
‘‘(I) any shortcomings in existing educational 
and career training opportunities available to 
workers in the community; and 
‘‘(II) any future employment opportunities 
within the community and the educational and 
career training skills required for workers to meet 
the future employment demand; 
‘‘(ii) reached out to other similarly situated institu-
tions in an effort to benefit from any best practices 
that may be shared with respect to providing edu-
cational or career training programs to workers eligible 
for training under section 236; and 
‘‘(iii) reached out to any eligible partnership in 
the community that has sought or received a Sector 
Partnership Grant under section 279A to enhance the 
effectiveness of each grant and avoid duplication of 
efforts; and 
‘‘(B) include a detailed description of— 
‘‘(i) the extent and outcome of the outreach con-
ducted under subparagraph (A); 
‘‘(ii) the extent to which the project for which the 
grant proposal is submitted will contribute to meeting 
any shortcomings identified under subparagraph 
(A)(i)(I) or any educational or career training needs 
identified under subparagraph (A)(i)(II); and 
‘‘(iii) the extent to which employers, including 
small- and medium-sized firms within the community, 
have demonstrated a commitment to employing 
workers who would benefit from the project for which 
the grant proposal is submitted. 
‘‘(d) CRITERIA FOR AWARD OF GRANTS.— 
‘‘(1) IN GENERAL.—Subject to the appropriation of funds, 
the Secretary shall award a grant under this section based 
on— 
‘‘(A) a determination of the merits of the grant proposal 
submitted by the eligible institution to develop, offer, or 
improve educational or career training programs to be made 
available to workers eligible for training under section 
236; 
‘‘(B) an evaluation of the likely employment opportuni-
ties available to workers who complete an educational or 
career training program that the eligible institution pro-
poses to develop, offer, or improve; and 
‘‘(C) an evaluation of prior demand for training pro-
grams by workers eligible for training under section 236 
in the community served by the eligible institution, as 
well as the availability and capacity of existing training 
programs to meet future demand for training programs. 
‘‘(2) PRIORITY
FOR
CERTAIN
COMMUNITIES.—In awarding 
grants under this section, the Secretary shall give priority 
to an eligible institution that serves a community that the 
Secretary of Commerce has determined under section 273 is 
eligible to apply for assistance under subchapter A within the 
5-year period preceding the date on which the grant proposal 
is submitted to the Secretary under this section.
H. R. 1—304 
‘‘(ii) 
EXCEPTIONS.—The 
Secretary 
may 
not 
authorize payments to an agricultural commodity pro-
ducer under clause (i)— 
‘‘(I) for subsistence expenses that exceed the 
lesser of— 
‘‘(aa) the actual per diem expenses for 
subsistence incurred by the producer; or 
‘‘(bb) the prevailing per diem allowance 
rate authorized under Federal travel regula-
tions; or 
‘‘(II) for travel expenses that exceed the pre-
vailing mileage rate authorized under the Federal 
travel regulations. 
‘‘(2) INTENSIVE TECHNICAL ASSISTANCE.—A producer that 
has completed initial technical assistance under paragraph (1) 
shall be eligible to participate in intensive technical assistance. 
Such assistance shall consist of— 
‘‘(A) a series of courses to further assist the producer 
in improving the competitiveness of the producer in pro-
ducing— 
‘‘(i) the agricultural commodity with respect to 
which the producer was certified under this chapter; 
or 
‘‘(ii) another agricultural commodity; and 
‘‘(B) assistance in developing an initial business plan 
based on the courses completed under subparagraph (A). 
‘‘(3) INITIAL BUSINESS PLAN.— 
‘‘(A) APPROVAL
BY
SECRETARY.—The Secretary shall 
approve an initial business plan developed under paragraph 
(2)(B) if the plan— 
‘‘(i) reflects the skills gained by the producer 
through the courses described in paragraph (2)(A); and 
‘‘(ii) demonstrates how the producer will apply 
those skills to the circumstances of the producer. 
‘‘(B) FINANCIAL ASSISTANCE FOR IMPLEMENTING INITIAL 
BUSINESS PLAN.—Upon approval of the producer’s initial 
business plan by the Secretary under subparagraph (A), 
a producer shall be entitled to an amount not to exceed 
$4,000 to— 
‘‘(i) implement the initial business plan; or 
‘‘(ii) develop a long-term business adjustment plan 
under paragraph (4). 
‘‘(4) LONG-TERM BUSINESS ADJUSTMENT PLAN.— 
‘‘(A) IN
GENERAL.—A producer that has completed 
intensive technical assistance under paragraph (2) and 
whose initial business plan has been approved under para-
graph (3)(A) shall be eligible for, in addition to the amount 
under subparagraph (C), assistance in developing a long- 
term business adjustment plan. 
‘‘(B) APPROVAL OF LONG-TERM BUSINESS ADJUSTMENT 
PLANS.—The Secretary shall approve a long-term business 
adjustment plan developed under subparagraph (A) if the 
Secretary determines that the plan— 
‘‘(i) includes steps reasonably calculated to materi-
ally contribute to the economic adjustment of the pro-
ducer to changing market conditions;
H. R. 1—315 
but for this clause or clause (vii), otherwise terminate 
under clause (i) or (ii)) a TAA-eligible individual (as 
defined in section 605(b)(4)(B)), the period of coverage 
shall not terminate by reason of clause (i) or (ii), as 
the case may be, before the later of the date specified 
in such clause or the date on which such individual 
ceases to be such a TAA-eligible individual. The pre-
ceding sentence shall not require any period of coverage 
to extend beyond December 31, 2010.’’. 
(b) IRC AMENDMENTS.—Clause (i) of section 4980B(f)(2)(B) of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘In the case of a qualified beneficiary’’ and 
inserting the following: 
‘‘(VI) SPECIAL RULE FOR DISABILITY.—In the 
case of a qualified beneficiary’’, and 
(2) by redesignating subclauses (V) and (VI), as amended 
by paragraph (1), as subclauses (VII) and (VIII), respectively, 
and by inserting after clause (IV) the following new subclauses: 
‘‘(V) SPECIAL RULE FOR PBGC RECIPIENTS.—In 
the case of a qualifying event described in para-
graph (3)(B) with respect to a covered employee 
who (as of such qualifying event) has a nonforfeit-
able right to a benefit any portion of which is 
to be paid by the Pension Benefit Guaranty Cor-
poration under title IV of the Employee Retirement 
Income Security Act of 1974, notwithstanding sub-
clause (I) or (II), the date of the death of the 
covered employee, or in the case of the surviving 
spouse or dependent children of the covered 
employee, 24 months after the date of the death 
of the covered employee. The preceding sentence 
shall not require any period of coverage to extend 
beyond December 31, 2010. 
‘‘(VI) SPECIAL RULE FOR TAA-ELIGIBLE INDIVID-
UALS.—In the case of a qualifying event described 
in paragraph (3)(B) with respect to a covered 
employee who is (as of the date that the period 
of coverage would, but for this subclause or sub-
clause (VII), otherwise terminate under subclause 
(I) or (II)) a TAA-eligible individual (as defined 
in paragraph (5)(C)(iv)(II)), the period of coverage 
shall not terminate by reason of subclause (I) or 
(II), as the case may be, before the later of the 
date specified in such subclause or the date on 
which such individual ceases to be such a TAA- 
eligible individual. The preceding sentence shall 
not require any period of coverage to extend beyond 
December 31, 2010.’’. 
(c) PHSA AMENDMENTS.—Section 2202(2)(A) of the Public 
Health Service Act (42 U.S.C. 300bb-2(2)(A)) is amended— 
(1) by striking ‘‘In the case of a qualified beneficiary’’ and 
inserting the following: 
‘‘(v) SPECIAL RULE FOR DISABILITY.—In the case 
of a qualified beneficiary’’; and 
(2) by redesignating clauses (iv) and (v), as amended by 
paragraph (1), as clauses (v) and (vi), respectively, and by 
inserting after clause (iii) the following new clause:
H. R. 1—353 
TITLE IV—MEDICARE AND MEDICAID 
HEALTH 
INFORMATION 
TECH-
NOLOGY; MISCELLANEOUS MEDICARE 
PROVISIONS 
SEC. 4001. TABLE OF CONTENTS OF TITLE. 
The table of contents of this title is as follows: 
TITLE IV—MEDICARE AND MEDICAID HEALTH INFORMATION 
TECHNOLOGY; MISCELLANEOUS MEDICARE PROVISIONS 
Sec. 4001. Table of contents of title. 
Subtitle A—Medicare Incentives 
Sec. 4101. Incentives for eligible professionals. 
Sec. 4102. Incentives for hospitals. 
Sec. 4103. Treatment of payments and savings; implementation funding. 
Sec. 4104. Studies and reports on health information technology. 
Subtitle B—Medicaid Incentives 
Sec. 4201. Medicaid provider HIT adoption and operation payments; implementa-
tion funding. 
Subtitle C—Miscellaneous Medicare Provisions 
Sec. 4301. Moratoria on certain Medicare regulations. 
Sec. 4302. Long-term care hospital technical corrections. 
Subtitle A—Medicare Incentives 
SEC. 4101. INCENTIVES FOR ELIGIBLE PROFESSIONALS. 
(a) INCENTIVE PAYMENTS.—Section 1848 of the Social Security 
Act (42 U.S.C. 1395w–4) is amended by adding at the end the 
following new subsection: 
‘‘(o) INCENTIVES FOR ADOPTION AND MEANINGFUL USE OF CER-
TIFIED EHR TECHNOLOGY.— 
‘‘(1) INCENTIVE PAYMENTS.— 
‘‘(A) IN GENERAL.— 
‘‘(i) IN GENERAL.—Subject to the succeeding sub-
paragraphs of this paragraph, with respect to covered 
professional services furnished by an eligible profes-
sional during a payment year (as defined in subpara-
graph (E)), if the eligible professional is a meaningful 
EHR user (as determined under paragraph (2)) for 
the EHR reporting period with respect to such year, 
in addition to the amount otherwise paid under this 
part, there also shall be paid to the eligible professional 
(or to an employer or facility in the cases described 
in clause (A) of section 1842(b)(6)), from the Federal 
Supplementary Medical Insurance Trust Fund estab-
lished under section 1841 an amount equal to 75 per-
cent of the Secretary’s estimate (based on claims sub-
mitted not later than 2 months after the end of the 
payment year) of the allowed charges under this part 
for all such covered professional services furnished by 
the eligible professional during such year. 
‘‘(ii) NO
INCENTIVE
PAYMENTS
WITH
RESPECT
TO 
YEARS
AFTER
2016.—No incentive payments may be
H. R. 1—354 
made under this subsection with respect to a year 
after 2016. 
‘‘(B) LIMITATIONS
ON
AMOUNTS
OF
INCENTIVE
PAY-
MENTS.— 
‘‘(i) IN
GENERAL.—In no case shall the amount 
of the incentive payment provided under this para-
graph for an eligible professional for a payment year 
exceed the applicable amount specified under this 
subparagraph with respect to such eligible professional 
and such year. 
‘‘(ii) AMOUNT.—Subject to clauses (iii) through (v), 
the applicable amount specified in this subparagraph 
for an eligible professional is as follows: 
‘‘(I) For the first payment year for such profes-
sional, $15,000 (or, if the first payment year for 
such eligible professional is 2011 or 2012, $18,000). 
‘‘(II) For the second payment year for such 
professional, $12,000. 
‘‘(III) For the third payment year for such 
professional, $8,000. 
‘‘(IV) For the fourth payment year for such 
professional, $4,000. 
‘‘(V) For the fifth payment year for such profes-
sional, $2,000. 
‘‘(VI) For any succeeding payment year for 
such professional, $0. 
‘‘(iii) PHASE
DOWN
FOR
ELIGIBLE
PROFESSIONALS 
FIRST ADOPTING EHR AFTER 2013.—If the first payment 
year for an eligible professional is after 2013, then 
the amount specified in this subparagraph for a pay-
ment year for such professional is the same as the 
amount specified in clause (ii) for such payment year 
for an eligible professional whose first payment year 
is 2013. 
‘‘(iv) INCREASE
FOR
CERTAIN
ELIGIBLE
PROFES-
SIONALS.—In the case of an eligible professional who 
predominantly furnishes services under this part in 
an area that is designated by the Secretary (under 
section 332(a)(1)(A) of the Public Health Service Act) 
as a health professional shortage area, the amount 
that would otherwise apply for a payment year for 
such professional under subclauses (I) through (V) of 
clause (ii) shall be increased by 10 percent. In imple-
menting the preceding sentence, the Secretary may, 
as determined appropriate, apply provisions of sub-
sections (m) and (u) of section 1833 in a similar manner 
as such provisions apply under such subsection. 
‘‘(v) NO
INCENTIVE
PAYMENT
IF
FIRST
ADOPTING 
AFTER 2014.—If the first payment year for an eligible 
professional is after 2014 then the applicable amount 
specified in this subparagraph for such professional 
for such year and any subsequent year shall be $0. 
‘‘(C) NON-APPLICATION
TO
HOSPITAL-BASED
ELIGIBLE 
PROFESSIONALS.— 
‘‘(i) IN GENERAL.—No incentive payment may be 
made under this paragraph in the case of a hospital- 
based eligible professional.
H. R. 1—364 
month period selected by the Secretary shall be determined 
as the sum of the amount, estimated based upon total 
discharges for the eligible hospital (regardless of any source 
of payment) for the period, for each discharge up to the 
23,000th discharge as follows: 
‘‘(i) For the first through 1,149th discharge, $0. 
‘‘(ii) For the 1,150th through the 23,000th dis-
charge, $200. 
‘‘(iii) For any discharge greater than the 23,000th, 
$0. 
‘‘(D) MEDICARE SHARE.—The Medicare share specified 
under this subparagraph for an eligible hospital for a period 
selected by the Secretary for a payment year is equal 
to the fraction— 
‘‘(i) the numerator of which is the sum (for such 
period and with respect to the eligible hospital) of— 
‘‘(I) the estimated number of inpatient-bed- 
days (as established by the Secretary) which are 
attributable to individuals with respect to whom 
payment may be made under part A; and 
‘‘(II) the estimated number of inpatient-bed- 
days (as so established) which are attributable 
to individuals who are enrolled with a Medicare 
Advantage organization under part C; and 
‘‘(ii) the denominator of which is the product of— 
‘‘(I) the estimated total number of inpatient- 
bed-days with respect to the eligible hospital 
during such period; and 
‘‘(II) the estimated total amount of the eligible 
hospital’s 
charges 
during 
such 
period, 
not 
including any charges that are attributable to 
charity care (as such term is used for purposes 
of hospital cost reporting under this title), divided 
by the estimated total amount of the hospital’s 
charges during such period. 
Insofar as the Secretary determines that data are not avail-
able on charity care necessary to calculate the portion 
of the formula specified in clause (ii)(II), the Secretary 
shall use data on uncompensated care and may adjust 
such data so as to be an appropriate proxy for charity 
care including a downward adjustment to eliminate bad 
debt data from uncompensated care data. In the absence 
of the data necessary, with respect to a hospital, for the 
Secretary to compute the amount described in clause (ii)(II), 
the amount under such clause shall be deemed to be 1. 
In the absence of data, with respect to a hospital, necessary 
to compute the amount described in clause (i)(II), the 
amount under such clause shall be deemed to be 0. 
‘‘(E) TRANSITION FACTOR SPECIFIED.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), the transi-
tion factor specified in this subparagraph for an eligible 
hospital for a payment year is as follows: 
‘‘(I) For the first payment year for such hos-
pital, 1. 
‘‘(II) For the second payment year for such 
hospital, 3⁄4.
H. R. 1—365 
‘‘(III) For the third payment year for such 
hospital, 1⁄2. 
‘‘(IV) For the fourth payment year for such 
hospital, 1⁄4. 
‘‘(V) For any succeeding payment year for such 
hospital, 0. 
‘‘(ii) PHASE DOWN FOR ELIGIBLE HOSPITALS FIRST 
ADOPTING EHR AFTER 2013.—If the first payment year 
for an eligible hospital is after 2013, then the transition 
factor specified in this subparagraph for a payment 
year for such hospital is the same as the amount 
specified in clause (i) for such payment year for an 
eligible hospital for which the first payment year is 
2013. If the first payment year for an eligible hospital 
is after 2015 then the transition factor specified in 
this subparagraph for such hospital and for such year 
and any subsequent year shall be 0. 
‘‘(F) FORM OF PAYMENT.—The payment under this sub-
section for a payment year may be in the form of a single 
consolidated payment or in the form of such periodic install-
ments as the Secretary may specify. 
‘‘(G) PAYMENT YEAR DEFINED.— 
‘‘(i) IN GENERAL.—For purposes of this subsection, 
the term ‘payment year’ means a fiscal year beginning 
with fiscal year 2011. 
‘‘(ii) FIRST, SECOND, ETC. PAYMENT
YEAR.—The 
term ‘first payment year’ means, with respect to 
inpatient hospital services furnished by an eligible hos-
pital, the first fiscal year for which an incentive pay-
ment is made for such services under this subsection. 
The terms ‘second payment year’, ‘third payment year’, 
and ‘fourth payment year’ mean, with respect to an 
eligible hospital, each successive year immediately fol-
lowing the first payment year for that hospital. 
‘‘(3) MEANINGFUL EHR USER.— 
‘‘(A) IN GENERAL.—For purposes of paragraph (1), an 
eligible hospital shall be treated as a meaningful EHR 
user for an EHR reporting period for a payment year 
(or, for purposes of subsection (b)(3)(B)(ix), for an EHR 
reporting period under such subsection for a fiscal year) 
if each of the following requirements are met: 
‘‘(i) MEANINGFUL
USE
OF
CERTIFIED
EHR
TECH-
NOLOGY.—The eligible hospital demonstrates to the 
satisfaction of the Secretary, in accordance with 
subparagraph (C)(i), that during such period the hos-
pital is using certified EHR technology in a meaningful 
manner. 
‘‘(ii) INFORMATION
EXCHANGE.—The eligible hos-
pital demonstrates to the satisfaction of the Secretary, 
in accordance with subparagraph (C)(i), that during 
such period such certified EHR technology is connected 
in a manner that provides, in accordance with law 
and standards applicable to the exchange of informa-
tion, for the electronic exchange of health information 
to improve the quality of health care, such as pro-
moting care coordination.
H. R. 1—366 
‘‘(iii) REPORTING ON MEASURES USING EHR.—Sub-
ject to subparagraph (B)(ii) and using such certified 
EHR technology, the eligible hospital submits informa-
tion for such period, in a form and manner specified 
by the Secretary, on such clinical quality measures 
and such other measures as selected by the Secretary 
under subparagraph (B)(i). 
The Secretary shall seek to improve the use of electronic 
health records and health care quality over time by 
requiring more stringent measures of meaningful use 
selected under this paragraph. 
‘‘(B) REPORTING ON MEASURES.— 
‘‘(i) SELECTION.—The Secretary shall select meas-
ures for purposes of subparagraph (A)(iii) but only 
consistent with the following: 
‘‘(I) The Secretary shall provide preference to 
clinical quality measures that have been selected 
for purposes of applying subsection (b)(3)(B)(viii) 
or that have been endorsed by the entity with 
a contract with the Secretary under section 
1890(a). 
‘‘(II) Prior to any measure (other than a clin-
ical quality measure that has been selected for 
purposes of applying subsection (b)(3)(B)(viii)) 
being selected under this subparagraph, the Sec-
retary shall publish in the Federal Register such 
measure and provide for a period of public com-
ment on such measure. 
‘‘(ii) LIMITATIONS.—The Secretary may not require 
the electronic reporting of information on clinical 
quality measures under subparagraph (A)(iii) unless 
the Secretary has the capacity to accept the informa-
tion electronically, which may be on a pilot basis. 
‘‘(iii) COORDINATION
OF
REPORTING
OF
INFORMA-
TION.—In selecting such measures, and in establishing 
the form and manner for reporting measures under 
subparagraph (A)(iii), the Secretary shall seek to avoid 
redundant or duplicative reporting with reporting 
otherwise required, including reporting under sub-
section (b)(3)(B)(viii). 
‘‘(C) DEMONSTRATION OF MEANINGFUL USE OF CERTIFIED 
EHR TECHNOLOGY AND INFORMATION EXCHANGE.— 
‘‘(i) IN GENERAL.—An eligible hospital may satisfy 
the demonstration requirement of clauses (i) and (ii) 
of subparagraph (A) through means specified by the 
Secretary, which may include— 
‘‘(I) an attestation; 
‘‘(II) the submission of claims with appropriate 
coding (such as a code indicating that inpatient 
care was documented using certified EHR tech-
nology); 
‘‘(III) a survey response; 
‘‘(IV) reporting under subparagraph (A)(iii); 
and 
‘‘(V) other means specified by the Secretary.