HR 1 EH
111th CONGRESS
1st Session
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H. R. 1
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AN ACT
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Making supplemental appropriations for job preservation and creation,
infrastructure investment, energy efficiency and science, assistance to
the unemployed, and State and local fiscal stabilization, for the fiscal
year ending September 30, 2009, and for other purposes.
/ Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,/
SECTION 1. SHORT TITLE.
This Act may be cited as the `American Recovery and Reinvestment
Act of 2009'.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
DIVISION A--APPROPRIATION PROVISIONS
TITLE I--GENERAL PROVISIONS
TITLE II--AGRICULTURE, NUTRITION, AND RURAL DEVELOPMENT
TITLE III--COMMERCE, JUSTICE, AND SCIENCE
TITLE IV--DEFENSE
TITLE V--ENERGY AND WATER
TITLE VI--FINANCIAL SERVICES AND GENERAL GOVERNMENT
TITLE VII--HOMELAND SECURITY
TITLE VIII--INTERIOR AND ENVIRONMENT
TITLE IX--LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION
TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS
TITLE XI--DEPARTMENT OF STATE
TITLE XII--TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT
TITLE XIII--STATE FISCAL STABILIZATION FUND
DIVISION B--OTHER PROVISIONS
TITLE I--TAX PROVISIONS
TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING
FAMILIES
TITLE III--HEALTH INSURANCE ASSISTANCE FOR THE UNEMPLOYED
TITLE IV--HEALTH INFORMATION TECHNOLOGY
TITLE V--MEDICAID PROVISIONS
TITLE VI--BROADBAND COMMUNICATIONS
TITLE VII--ENERGY
SEC. 3. PURPOSES AND PRINCIPLES.
(a) Statement of Purposes- The purposes of this Act include the
following:
(1) To preserve and create jobs and promote economic recovery.
(2) To assist those most impacted by the recession.
(3) To provide investments needed to increase economic
efficiency by spurring technological advances in science and
health.
(4) To invest in transportation, environmental protection,
and other infrastructure that will provide long-term
economic benefits.
(5) To stabilize State and local government budgets, in
order to minimize and avoid reductions in essential services
and counterproductive state and local tax increases.
(b) General Principles Concerning Use of Funds- The President and
the heads of Federal departments and agencies shall manage and
expend the funds made available in this Act so as to achieve the
purposes specified in subsection (a), including commencing
expenditures and activities as quickly as possible consistent with
prudent management.
SEC. 4. REFERENCES.
Except as expressly provided otherwise, any reference to `this
Act' contained in any division of this Act shall be treated as
referring only to the provisions of that division.
SEC. 5. EMERGENCY DESIGNATIONS.
(a) In General- Each amount in this Act is designated as an
emergency requirement and necessary to meet emergency needs
pursuant to section 204(a) of S. Con. Res. 21 (110th Congress) and
section 301(b)(2) of S. Con. Res. 70 (110th Congress), the
concurrent resolutions on the budget for fiscal years 2008 and 2009.
(b) Pay-as-You-Go- All applicable provisions in this Act are
designated as an emergency for purposes of pay-as-you-go principles.
DIVISION A--APPROPRIATION PROVISIONS
SEC. 1001. STATEMENT OF APPROPRIATIONS.
The following sums in this Act are appropriated, out of any money
in the Treasury not otherwise appropriated, for the fiscal year
ending September 30, 2009, and for other purposes.
TITLE I--GENERAL PROVISIONS
Subtitle A--Use of Funds
SEC. 1101. RELATIONSHIP TO OTHER APPROPRIATIONS.
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).
SEC. 1102. PREFERENCE FOR QUICK-START ACTIVITIES.
In using funds made available in this Act for infrastructure
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.
SEC. 1103. REQUIREMENT OF TIMELY AWARD OF GRANTS.
(a) Formula Grants- Formula grants using funds made available in
this Act shall be awarded not later than 30 days after the date of
the enactment of this Act (or, in the case of appropriations not
available upon enactment, not later than 30 days after the
appropriation becomes available for obligation), unless expressly
provided otherwise in this Act.
(b) Competitive Grants- Competitive grants using funds made
available in this Act shall be awarded not later than 90 days
after the date of the enactment of this Act (or, in the case of
appropriations not available upon enactment, not later than 90
days after the appropriation becomes available for obligation),
unless expressly provided otherwise in this Act.
(c) Additional Period for New Programs- The time limits specified
in subsections (a) and (b) may each be extended by up to 30 days
in the case of grants for which funding was not provided in fiscal
year 2008.
SEC. 1104. USE IT OR LOSE IT REQUIREMENTS FOR GRANTEES.
(a) Deadline for Binding Commitments- Each recipient of a grant
made using amounts made available in this Act in any account
listed in subsection (c) shall enter into contracts or other
binding commitments not later than 1 year after the date of the
enactment of this Act (or not later than 9 months after the grant
is awarded, if later) to make use of 50 percent of the funds
awarded, and shall enter into contracts or other binding
commitments not later than 2 years after the date of the enactment
of this Act (or not later than 21 months after the grant is
awarded, if later) to make use of the remaining funds. In the case
of activities to be carried out directly by a grant recipient
(rather than by contracts, subgrants, or other arrangements with
third parties), a certification by the recipient specifying the
amounts, planned timing, and purpose of such expenditures shall be
deemed a binding commitment for purposes of this section.
(b) Redistribution of Uncommitted Funds- The head of the Federal
department or agency involved shall recover or deobligate any
grant funds not committed in accordance with subsection (a), and
redistribute such funds to other recipients eligible under the
grant program and able to make use of such funds in a timely
manner (including binding commitments within 120 days after the
reallocation).
(c) Appropriations to Which This Section Applies- This section
shall apply to grants made using amounts appropriated in any of
the following accounts within this Act:
(1) `Environmental Protection Agency--State and Tribal
Assistance Grants'.
(2) `Department of Transportation--Federal Aviation
Administration--Grants-in-Aid for Airports'.
(3) `Department of Transportation--Federal Railroad
Administration--Capital Assistance for Intercity Passenger
Rail Service'.
(4) `Department of Transportation--Federal Transit
Administration--Capital Investment Grants'.
(5) `Department of Transportation--Federal Transit
Administration--Fixed Guideway Infrastructure Investment'.
(6) `Department of Transportation--Federal Transit
Administration--Transit Capital Assistance'.
(7) `Department of Housing and Urban Development--Public and
Indian Housing--Public Housing Capital Fund'.
(8) `Department of Housing and Urban Development--Public and
Indian Housing--Elderly, Disabled, and Section 8 Assisted
Housing Energy Retrofit'.
(9) `Department of Housing and Urban Development--Public and
Indian Housing--Native American Housing Block Grants'.
(10) `Department of Housing and Urban Development--Community
Planning and Development--HOME Investment Partnerships Program'.
(11) `Department of Housing and Urban Development--Community
Planning and Development--Self-Help and Assisted
Homeownership Opportunity Program'.
SEC. 1105. PERIOD OF AVAILABILITY.
(a) In General- All funds appropriated in this Act shall remain
available for obligation until September 30, 2010, unless
expressly provided otherwise in this Act.
(b) Reobligation- Amounts that are not needed or cannot be used
under title X of this Act for the activity for which originally
obligated may be deobligated and, notwithstanding the limitation
on availability specified in subsection (a), reobligated for other
activities that have received funding from the same account or
appropriation in such title.
SEC. 1106. SET-ASIDE FOR MANAGEMENT AND OVERSIGHT.
Unless other provision is made in this Act (or in other applicable
law) for such expenses, up to 0.5 percent of each amount
appropriated in this Act may be used for the expenses of
management and oversight of the programs, grants, and activities
funded by such appropriation, and may be transferred by the head
of the Federal department or agency involved to any other
appropriate account within the department or agency for that
purpose. Funds set aside under this section shall remain available
for obligation until September 30, 2012.
SEC. 1107. APPROPRIATIONS FOR INSPECTORS GENERAL.
In addition to funds otherwise made available in this Act, there
are hereby appropriated the following sums to the specified
Offices of Inspector General, to remain available until September
30, 2013, for oversight and audit of programs, grants, and
projects funded under this Act:
(1) `Department of Agriculture--Office of Inspector
General', $22,500,000.
(2) `Department of Commerce--Office of Inspector General',
$10,000,000.
(3) `Department of Defense--Office of the Inspector
General', $15,000,000.
(4) `Department of Education--Departmental
Management--Office of the Inspector General', $14,000,000.
(5) `Department of Energy--Office of Inspector General',
$15,000,000.
(6) `Department of Health and Human Services--Office of the
Secretary--Office of Inspector General', $19,000,000.
(7) `Department of Homeland Security--Office of Inspector
General', $2,000,000.
(8) `Department of Housing and Urban Development--Management
and Administration--Office of Inspector General', $15,000,000.
(9) `Department of the Interior--Office of Inspector
General', $15,000,000.
(10) `Department of Justice--Office of Inspector General',
$2,000,000.
(11) `Department of Labor--Departmental Management--Office
of Inspector General', $6,000,000.
(12) `Department of Transportation--Office of Inspector
General', $20,000,000.
(13) `Department of Veterans Affairs--Office of Inspector
General', $1,000,000.
(14) `Environmental Protection Agency--Office of Inspector
General', $20,000,000.
(15) `General Services Administration--General
Activities--Office of Inspector General', $15,000,000.
(16) `National Aeronautics and Space Administration--Office
of Inspector General', $2,000,000.
(17) `National Science Foundation--Office of Inspector
General', $2,000,000.
(18) `Small Business Administration--Office of Inspector
General', $10,000,000.
(19) `Social Security Administration--Office of Inspector
General', $2,000,000.
(20) `Corporation for National and Community Service--Office
of Inspector General', $1,000,000.
SEC. 1108. APPROPRIATION FOR GOVERNMENT ACCOUNTABILITY OFFICE.
There is hereby appropriated as an additional amount for
`Government Accountability Office--Salaries and Expenses'
$25,000,000, for oversight activities relating to this Act.
SEC. 1109. PROHIBITED USES.
None of the funds appropriated or otherwise made available in this
Act may be used for any casino or other gambling establishment,
aquarium, zoo, golf course, or swimming pool.
SEC. 1110. USE OF AMERICAN IRON AND STEEL.
(a) In General- 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 and steel used in
the project is produced in the United States.
(b) Exceptions- Subsection (a) shall not apply in any case 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 and steel are not produced in the United States in
sufficient and reasonably available quantities and of a
satisfactory quality; or
(3) inclusion of iron and steel produced in the United
States will increase the cost of the overall project by more
than 25 percent.
(c) Written Justification for Waiver- 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) Definitions- In this section, the terms `public building' and
`public work' have the meanings given such terms in section 1 of
the Buy American Act (41 U.S.C. 10c) and include airports,
bridges, canals, dams, dikes, pipelines, railroads, multiline mass
transit systems, roads, tunnels, harbors, and piers.
SEC. 1111. WAGE RATE REQUIREMENTS.
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 specified 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.
SEC. 1112. ADDITIONAL ASSURANCE OF APPROPRIATE USE OF FUNDS.
None of the funds provided by this Act may be made available to
the State of Illinois, or any agency of the State, unless: (1) the
use of such funds by the State is approved in legislation enacted
by the State after the date of the enactment of this Act; or (2)
Rod R. Blagojevich no longer holds the office of Governor of the
State of Illinois. The preceding sentence shall not apply to any
funds provided directly to a unit of local government: (1) by a
Federal department or agency; or (2) by an established formula
from the State.
SEC. 1113. PERSISTENT POVERTY COUNTIES.
(a) Allocation Requirement- Of the amount appropriated in this Act
for `Department of Agriculture--Rural Development Programs--Rural
Community Advancement Program', at least 10 percent shall be
allocated for assistance in persistent poverty counties.
(b) Definition- For purposes of this section, the term `persistent
poverty counties' means any county that has had 20 percent or more
of its population living in poverty over the past 30 years, as
measured by the 1980, 1990, and 2000 decennial censuses.
SEC. 1114. REQUIRED PARTICIPATION IN E-VERIFY PROGRAM.
None of the funds made available in this Act may be used to enter
into a contract with an entity that does not participate in the
E-verify program described in section 401(b) of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996 (8
U.S.C. 1324a note).
SEC. 1115. ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF
APPROPRIATE USE OF FUNDS.
(a) Certification by Governor- Not later than 45 days after the
date of enactment of this Act, for funds provided to any State or
agency thereof, the Governor of the State shall certify that the
State will request and use funds provided by this Act.
(b) Acceptance by State Legislature- If funds provided to any
State in any division of this Act are not accepted for use by the
Governor, then acceptance by the State legislature, by means of
the adoption of a concurrent resolution, shall be sufficient to
provide funding to such State.
(c) Distribution- After the adoption of a State legislature's
concurrent resolution, funding to the State will be for
distribution to local governments, councils of government, public
entities, and public-private entities within the State either by
formula or at the State's discretion.
Subtitle B--Accountability in Recovery Act Spending
/PART 1--TRANSPARENCY AND OVERSIGHT REQUIREMENTS/
SEC. 1201. TRANSPARENCY REQUIREMENTS.
(a) Requirements for Federal Agencies- Each Federal agency shall
publish on the website Recovery.gov (as established under section
1226 of this subtitle)--
(1) a plan for using funds made available in this Act to the
agency; and
(2) all announcements for grant competitions, allocations of
formula grants, and awards of competitive grants using those
funds.
(b) Requirements for Federal, State, and Local Government Agencies-
(1) INFRASTRUCTURE INVESTMENT FUNDING- With respect to funds
made available under this Act for infrastructure investments
to Federal, State, or local government agencies, the
following requirements apply:
(A) Each such agency shall notify the public of funds
obligated to particular infrastructure investments by
posting the notification on the website Recovery.gov.
(B) The notification required by subparagraph (A)
shall include the following:
(i) A description of the infrastructure
investment funded.
(ii) The purpose of the infrastructure investment.
(iii) The total cost of the infrastructure
investment.
(iv) The rationale of the agency for funding the
infrastructure investment with funds made
available under this Act.
(v) The name of the person to contact at the
agency if there are concerns with the
infrastructure investment and, with respect to
Federal agencies, an email address for the
Federal official in the agency whom the public
can contact.
(vi) In the case of State or local agencies, a
certification from the Governor, mayor, or other
chief executive, as appropriate, that the
infrastructure 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. A State or local agency may
not receive infrastructure investment funding
from funds made available in this Act unless
this certification is made.
(2) OPERATIONAL FUNDING- With respect to funds made
available under this Act in the form of grants for
operational purposes to State or local government agencies
or other organizations, the agency or organization shall
publish on the website Recovery.gov a description of the
intended use of the funds, including the number of jobs
sustained or created.
(c) Availability on Internet of Contracts and Grants- Each
contract awarded or grant issued using funds made available in
this Act shall be posted on the Internet and linked to the website
Recovery.gov. Proprietary data that is required to be kept
confidential under applicable Federal or State law or regulation
shall be redacted before posting.
SEC. 1202. 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 an inspector general
resulting from such a review shall be relayed immediately to the
head of each department and agency. 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 Internet and linked to the website Recovery.gov.
(b) Examination of Records- The Inspector General of the agency
concerned may examine any records related to obligations of funds
made available in this Act.
SEC. 1203. GOVERNMENT ACCOUNTABILITY OFFICE REVIEWS AND REPORTS.
(a) Reviews and Reports- The Comptroller General of the United
States shall conduct bimonthly reviews and prepare reports on such
reviews on the use by selected States and localities of funds made
available in this Act. Such reports, along with any audits
conducted by the Comptroller General of such funds, shall be
posted on the Internet and linked to the website Recovery.gov.
(b) Examination of Records- The Comptroller General may examine
any records related to obligations of funds made available in this
Act.
SEC. 1204. COUNCIL OF ECONOMIC ADVISERS REPORTS.
The Chairman of the Council of Economic Advisers, in consultation
with the Director of the Office of Management and Budget and the
Secretary of the Treasury, shall submit quarterly reports to
Congress detailing the estimated impact of programs under this Act
on employment, economic growth, and other key economic indicators.
SEC. 1205. SPECIAL CONTRACTING PROVISIONS.
The Federal Acquisition Regulation shall apply to contracts
awarded with funds made available in this Act. To the maximum
extent possible, such contracts shall be awarded as fixed-price
contracts through the use of competitive procedures. Existing
contracts so awarded may be utilized in order to obligate such
funds expeditiously. 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 Recovery.gov.
/PART 2--ACCOUNTABILITY AND TRANSPARENCY BOARD/
SEC. 1221. ESTABLISHMENT OF THE ACCOUNTABILITY AND TRANSPARENCY BOARD.
There is established a board to be known as the `Recovery Act
Accountability and Transparency Board' (hereafter in this subtitle
referred to as the `Board') to coordinate and conduct oversight of
Federal spending under this Act to prevent waste, fraud, and abuse.
SEC. 1222. COMPOSITION OF BOARD.
(a) Membership- The Board shall be composed of seven members as
follows:
(1) The Chief Performance Officer of the President, who
shall chair the Board.
(2) Six members designated by the President from the
inspectors general and deputy secretaries of the Departments
of Education, Energy, Health and Human Services,
Transportation, and other Federal departments and agencies
to which funds are made available in this Act.
(b) Terms- Each member of the Board shall serve for a term to be
determined by the President.
SEC. 1223. FUNCTIONS OF THE BOARD.
(a) Oversight- The Board shall coordinate and conduct oversight of
spending under this Act to prevent waste, fraud, and abuse. In
addition to responsibilities set forth in this subtitle, the
responsibilities of the Board shall include the following:
(1) Ensuring that the reporting of information regarding
contract and grants under this Act meets applicable
standards and specifies the purpose of the contract or grant
and measures of performance.
(2) Verifying that competition requirements applicable to
contracts and grants under this Act and other applicable
Federal law have been satisfied.
(3) Investigating spending under this Act to determine
whether wasteful spending, poor contract or grant
management, or other abuses are occurring.
(4) Reviewing whether there are sufficient qualified
acquisition and grant personnel overseeing spending under
this Act.
(5) Reviewing whether acquisition and grant personnel
receive adequate training and whether there are appropriate
mechanisms for interagency collaboration.
(b) Reports-
(1) FLASH AND OTHER REPORTS- The Board shall submit to
Congress reports, to be known as `flash reports', on
potential management 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.
(2) QUARTERLY- The Board shall submit to the President and
Congress quarterly reports summarizing its findings and the
findings of agency inspectors general and may issue
additional reports as appropriate.
(3) ANNUALLY- On an annual basis, the Board shall prepare a
consolidated report on the use of funds under this Act. All
reports shall be publicly available and shall be posted on
the Internet website Recovery.gov, except that portions of
reports may be redacted if the portions would disclose
information that is protected from public disclosure under
section 552 of title 5, United States Code (popularly known
as the Freedom of Information Act).
(c) Recommendations to Agencies- The Board shall make
recommendations to Federal agencies on measures to prevent waste,
fraud, and abuse. A Federal agency shall, within 30 days after
receipt of any such recommendation, submit to the Board, the
President, and the congressional committees of jurisdiction a
report on whether the agency agrees or disagrees with the
recommendations and what steps, if any, the agency plans to take
to implement the recommendations.
SEC. 1224. POWERS OF THE BOARD.
(a) Coordination of Audits and Investigations by Agency Inspectors
General- The Board shall coordinate the audits and investigations
of spending under this Act by agency inspectors general.
(b) Conduct of Reviews by Board- The Board may conduct reviews of
spending under this Act and may collaborate on such reviews with
any inspector general.
(c) Meetings- The Board may, for the purpose of carrying out its
duties under this Act, hold public meetings, sit and act at times
and places, and receive information as the Board considers
appropriate. The Board shall meet at least once a month.
(d) Obtaining Official Data- The Board may secure directly from
any department or agency of the United States information
necessary to enable it to carry out its duties under this Act.
Upon request of the Chairman of the Board, the head of that
department or agency shall furnish that information to the Board.
(e) Contracts- The Board may enter into contracts to enable the
Board to discharge its duties under this Act.
SEC. 1225. STAFFING.
(a) Executive Director- The Chairman of the Board may appoint and
fix the compensation of an executive director and other personnel
as may be required to carry out the functions of the Board. The
Director shall be paid at the rate of basic pay for level IV of
the Executive Schedule.
(b) Staff of Federal Agencies- Upon request of the Board, the head
of any Federal department or agency may detail any Federal
official or employee, including officials and employees of offices
of inspector general, to the Board without reimbursement from the
Board, and such detailed staff shall retain the rights, status,
and privileges of his or her regular employment without interruption.
(c) Office Space- Office space shall be provided to the Board
within the Executive Office of the President.
SEC. 1226. RECOVERY.GOV.
(a) Requirement To Establish Website- The Board shall establish
and maintain a website on the Internet to be named Recovery.gov,
to foster greater accountability and transparency in the use of
funds made available in this Act.
(b) Purpose- Recovery.gov shall be a portal or gateway to key
information related to this Act and provide a window to other
Government websites with related information.
(c) Matters Covered- In establishing the website Recovery.gov, 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 a database of 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
funds made available in this Act.
(4) The website shall provide detailed data on contracts
awarded by the Government for purposes of carrying out this
Act, including information about the competitiveness of the
contracting process, notification of solicitations for
contracts to be awarded, and information about the process
that was used for the award of contracts.
(5) The website shall include printable reports on funds
made available in this Act obligated by month to each State
and congressional district.
(6) The website shall provide a means for the public to give
feedback on the performance of contracts awarded for
purposes of carrying out this Act.
(7) The website shall be enhanced and updated as necessary
to carry out the purposes of this subtitle.
(8) The website shall provide, by location, links to and
information on how to access job opportunities created at or
by entities receiving funding under this Act, including, if
possible, links to or information about local employment
agencies; state, local and other public agencies receiving
funding; and private firms contracted to perform work funded
by this Act.
SEC. 1227. PRESERVATION OF THE INDEPENDENCE OF INSPECTORS GENERAL.
Inspectors general shall retain independent authority to determine
whether to conduct an audit or investigation of spending under
this Act. 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, within 30 days after receipt of the
request, submit to the Board, the agency head, and the
congressional committees of jurisdiction a report explaining why
the inspector general has rejected the request in whole or in part.
SEC. 1228. 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 auditor generals.
SEC. 1229. INDEPENDENT ADVISORY PANEL.
(a) Establishment- There is established a panel to be known as the
`Independent Advisory Panel' to advise the Board.
(b) Membership- The Panel shall be composed of five members
appointed by the President from among individuals with expertise
in economics, public finance, contracting, accounting, or other
relevant fields.
(c) Functions- The Panel shall make recommendations to the Board
on actions the Board could take to prevent waste, fraud, and abuse
in Federal spending under this Act.
(d) Travel Expenses- Each member of the Panel shall receive travel
expenses, including per diem in lieu of subsistence, in accordance
with applicable provisions under subchapter I of chapter 57 of
title 5, United States Code.
SEC. 1230. FUNDING.
There is hereby appropriated to the Board $14,000,000 to carry out
this subtitle.
SEC. 1231. BOARD TERMINATION.
The Board shall terminate 12 months after 90 percent of the funds
made available under this Act have been expended, as determined by
the Director of the Office of Management and Budget.
/PART 3--ADDITIONAL ACCOUNTABILITY AND TRANSPARENCY PROVISIONS/
SEC. 1241. LIMITATION ON THE LENGTH OF CERTAIN NONCOMPETITIVE
CONTRACTS.
No contract entered into using funds made available in this Act
pursuant to the authority provided in section 303(c)(2) of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 253(c)(2)) that is for an amount greater than the
simplified acquisition threshold (as defined in section 4(11) of
the Office of Federal Procurement Policy Act (41 U.S.C. (4)(11))--
(1) may exceed the time necessary--
(A) to meet the unusual and compelling requirements of
the work to be performed under the contract; and
(B) for the executive agency to enter into another
contract for the required goods or services through
the use of competitive procedures; and
(2) may exceed one year unless the head of the executive
agency entering into such contract determines that
exceptional circumstances apply.
SEC. 1242. ACCESS OF GOVERNMENT ACCOUNTABILITY OFFICE AND OFFICES
OF INSPECTOR GENERAL TO CERTAIN EMPLOYEES.
(a) Access- Each contract awarded using funds made available in
this Act shall provide that the Comptroller General and his
representatives, and any representatives of an appropriate
inspector general appointed under section 3 or 8G of the Inspector
General Act of 1978 (5 U.S.C. App.), are authorized--
(1) to examine any records of the contractor or any of its
subcontractors, or any State or local agency administering
such contract, that directly pertain to, and involve
transactions relating to, the contract or subcontract; and
(2) to interview any current employee 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 the Comptroller General or an Inspector General.
SEC. 1243. PROTECTING STATE AND LOCAL GOVERNMENT AND CONTRACTOR
WHISTLEBLOWERS.
(a) Prohibition of Reprisals- An employee of any non-Federal
employer receiving funds made available in this Act may not be
discharged, demoted, or otherwise discriminated against as a
reprisal for disclosing to the Board, an inspector general, the
Comptroller General, a member of Congress, or a Federal agency
head, or their representatives, information that the employee
reasonably believes is evidence of--
(1) gross mismanagement of an executive agency contract or
grant;
(2) a gross waste of executive agency funds;
(3) a substantial and specific danger to public health or
safety; or
(4) a violation of law related to an executive agency
contract (including the competition for or negotiation of a
contract) or grant awarded or issued to carry out this Act.
(b) Investigation of Complaints-
(1) A person who believes that the person has been subjected
to a reprisal prohibited by subsection (a) may submit a
complaint to the inspector general of the executive agency
that awarded the contract or issued the grant. Unless the
inspector general determines that the complaint is
frivolous, the inspector general shall investigate the
complaint and, upon completion of such investigation, submit
a report of the findings of the investigation to the person,
the person's employer, the head of the Federal agency that
awarded the contract or issued the grant, and the Board.
(2)(A) Except as provided under subparagraph (B), the
inspector general shall make a determination that a
complaint is frivolous or submit a report under paragraph
(1) within 180 days after receiving the complaint.
(B) If the inspector general is unable to complete an
investigation in time to submit a report within the 180-day
period specified in 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 complaint.
(c) Remedy and Enforcement Authority-
(1) Not later than 30 days after receiving an inspector
general report pursuant to subsection (b), the head of the
agency concerned shall determine whether there is sufficient
basis to conclude that the non-Federal employer has
subjected the complainant to a reprisal prohibited by
subsection (a) and shall either issue an order denying
relief or shall take one or more of the following actions:
(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),
employment benefits, and other terms and conditions 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.
(2) If the head of an executive agency issues an order
denying relief under paragraph (1) or has not issued an
order within 210 days after the submission of a complaint
under subsection (b), or in the case of an extension of time
under paragraph (b)(2)(B), not later than 30 days after the
expiration of the extension of time, and there is no showing
that such delay is due to the bad faith of the complainant,
the complainant shall be deemed to have exhausted 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.
(3) An inspector general determination and an agency head
order denying relief under paragraph (2) shall be admissible
in evidence in any de novo action at law or equity brought
pursuant to this subsection.
(4) Whenever a person fails to comply with an order issued
under paragraph (1), 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 and compensatory and exemplary damages.
(5) Any person adversely affected or aggrieved by an order
issued under paragraph (1) 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.
(d) Construction- Nothing in this section may be construed to
authorize the discharge of, demotion of, or discrimination 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.
(e) Definitions-
(1) NON-FEDERAL EMPLOYER RECEIVING FUNDS UNDER THIS ACT- The
term `non-Federal employer receiving funds made available in
this Act' means--
(A) with respect to a Federal contract awarded or
Federal grant issued to carry out this Act, the
contractor or grantee, as the case may be, if the
contractor or grantee is an employer; or
(B) a State or local government, if the State or local
government has received funds made available in this Act.
(2) EXECUTIVE AGENCY- The term `executive agency' has the
meaning given that term in section 4 of the Office of
Federal Procurement Policy Act (41 U.S.C. 403).
(3) 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 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).
/PART 4--FURTHER ACCOUNTABILITY AND TRANSPARENCY PROVISIONS/
SEC. 1261. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title- This part may be cited as the `Whistleblower
Protection Enhancement Act of 2009'.
(b) Table of Contents- The table of contents for this part is as
follows:
Part 4--Further Accountability and Transparency Provisions
Sec. 1261. Short title; table of contents.
Sec. 1262. Clarification of disclosures covered.
Sec. 1263. Definitional amendments.
Sec. 1264. Rebuttable presumption.
Sec. 1265. Nondisclosure policies, forms, and agreements.
Sec. 1266. Exclusion of agencies by the President.
Sec. 1267. Disciplinary action.
Sec. 1268. Government Accountability Office study on
revocation of security clearances.
Sec. 1269. Alternative recourse.
Sec. 1270. National security whistleblower rights.
Sec. 1271. Enhancement of contractor employee whistleblower
protections.
Sec. 1272. Prohibited personnel practices affecting the
Transportation Security Administration.
Sec. 1273. Clarification of whistleblower rights relating to
scientific and other research.
Sec. 1274. Effective date.
SEC. 1262. CLARIFICATION OF DISCLOSURES COVERED.
(a) In General- Section 2302(b)(8) of title 5, United States Code,
is amended--
(1) in subparagraph (A)--
(A) by striking `which the employee or applicant
reasonably believes evidences' and inserting `,
without restriction as to time, place, form, motive,
context, forum, or prior disclosure made to any person
by an employee or applicant, including a disclosure
made in the ordinary course of an employee's duties,
that the employee or applicant reasonably believes is
evidence of'; and
(B) in clause (i), by striking `a violation' and
inserting `any violation'; and
(2) in subparagraph (B)--
(A) by striking `which the employee or applicant
reasonably believes evidences' and inserting `,
without restriction as to time, place, form, motive,
context, forum, or prior disclosure made to any person
by an employee or applicant, including a disclosure
made in the ordinary course of an employee's duties,
of information that the employee or applicant
reasonably believes is evidence of'; and
(B) in clause (i), by striking `a violation' and
inserting `any violation (other than a violation of
this section)'.
(b) Prohibited Personnel Practices Under Section 2302(b)(9)- Title
5, United States Code, is amended in subsections (a)(3),
(b)(4)(A), and (b)(4)(B)(i) of section 1214 and in subsections (a)
and (e)(1) of section 1221 by inserting `or 2302(b)(9)(B)-(D)'
after `section 2302(b)(8)' each place it appears.
SEC. 1263. DEFINITIONAL AMENDMENTS.
(a) Disclosure- Section 2302(a)(2) of title 5, United States Code,
is amended--
(1) in subparagraph (B)(ii), by striking `and' at the end;
(2) in subparagraph (C)(iii), by striking the period at the
end and inserting `; and'; and
(3) by adding at the end the following:
`(D) `disclosure' means a formal or informal communication,
but does not include a communication concerning policy
decisions that lawfully exercise discretionary authority
unless the employee or applicant providing the disclosure
reasonably believes that the disclosure evidences--
`(i) any violation of any law, rule, or regulation; or
`(ii) gross mismanagement, a gross waste of funds, an
abuse of authority, or a substantial and specific
danger to public health or safety.'.
(b) Clear and Convincing Evidence- Sections 1214(b)(4)(B)(ii) and
1221(e)(2) of title 5, United States Code, are amended by adding
at the end the following: `For purposes of the preceding sentence,
`clear and convincing evidence' means evidence indicating that the
matter to be proved is highly probable or reasonably certain.'.
SEC. 1264. REBUTTABLE PRESUMPTION.
Section 2302(b) of title 5, United States Code, is amended by
adding at the end the following: `For purposes of paragraph (8),
any presumption relating to the performance of a duty by an
employee who has authority to take, direct others to take,
recommend, or approve any personnel action may be rebutted by
substantial evidence. For purposes of paragraph (8), a
determination as to whether an employee or applicant reasonably
believes that such employee or applicant has disclosed information
that evidences any violation of law, rule, regulation, gross
mismanagement, a gross waste of funds, an abuse of authority, or a
substantial and specific danger to public health or safety shall
be made by determining whether a disinterested observer with
knowledge of the essential facts known to or readily ascertainable
by the employee or applicant could reasonably conclude that the
actions of the Government evidence such violations, mismanagement,
waste, abuse, or danger.'.
SEC. 1265. NONDISCLOSURE POLICIES, FORMS, AND AGREEMENTS.
(a) Personnel Action- Section 2302(a)(2)(A) of title 5, United
States Code, is amended--
(1) in clause (x), by striking `and' at the end;
(2) by redesignating clause (xi) as clause (xii); and
(3) by inserting after clause (x) the following:
`(xi) the implementation or enforcement of any
nondisclosure policy, form, or agreement; and'.
(b) Prohibited Personnel Practice- Section 2302(b) of title 5,
United States Code, is amended--
(1) in paragraph (11), by striking `or' at the end;
(2) by redesignating paragraph (12) as paragraph (14); and
(3) by inserting after paragraph (11) the following:
`(12) implement or enforce any nondisclosure policy, form,
or agreement, if such policy, form, or agreement does not
contain the following statement: `These provisions are
consistent with and do not supersede, conflict with, or
otherwise alter the employee obligations, rights, or
liabilities created by Executive Order No. 12958; section
7211 of title 5, United States Code (governing disclosures
to Congress); section 1034 of title 10, United States Code
(governing disclosures to Congress by members of the
military); section 2302(b)(8) of title 5, United States Code
(governing disclosures of illegality, waste, fraud, abuse,
or public health or safety threats); the Intelligence
Identities Protection Act of 1982 (50 U.S.C. 421 and
following) (governing disclosures that could expose
confidential Government agents); and the statutes which
protect against disclosures that could compromise national
security, including sections 641, 793, 794, 798, and 952 of
title 18, United States Code, and section 4(b) of the
Subversive Activities Control Act of 1950 (50 U.S.C.
783(b)). The definitions, requirements, obligations, rights,
sanctions, and liabilities created by such Executive order
and such statutory provisions are incorporated into this
agreement and are controlling.';
`(13) conduct, or cause to be conducted, an investigation,
other than any ministerial or nondiscretionary factfinding
activities necessary for the agency to perform its mission,
of an employee or applicant for employment because of any
activity protected under this section; or'.
SEC. 1266. EXCLUSION OF AGENCIES BY THE PRESIDENT.
Section 2302(a)(2)(C) of title 5, United States Code, is amended
by striking clause (ii) and inserting the following:
`(ii)(I) the Federal Bureau of Investigation, the
Central Intelligence Agency, the Defense Intelligence
Agency, the National Geospatial-Intelligence Agency,
or the National Security Agency; or
`(II) as determined by the President, any Executive
agency or unit thereof the principal function of which
is the conduct of foreign intelligence or
counterintelligence activities, if the determination
(as that determination relates to a personnel action)
is made before that personnel action; or'.
SEC. 1267. DISCIPLINARY ACTION.
Section 1215(a)(3) of title 5, United States Code, is amended to
read as follows:
`(3)(A) A final order of the Board may impose--
`(i) disciplinary action consisting of removal, reduction in
grade, debarment from Federal employment for a period not to
exceed 5 years, suspension, or reprimand;
`(ii) an assessment of a civil penalty not to exceed $1,000; or
`(iii) any combination of disciplinary actions described
under clause (i) and an assessment described under clause (ii).
`(B) In any case in which the Board finds that an employee has
committed a prohibited personnel practice under paragraph (8) or
(9) of section 2302(b), the Board shall impose disciplinary action
if the Board finds that the activity protected under such
paragraph (8) or (9) (as the case may be) was the primary
motivating factor, unless that employee demonstrates, by a
preponderance of the evidence, that the employee would have taken,
failed to take, or threatened to take or fail to take the same
personnel action, in the absence of such protected activity.'.
SEC. 1268. GOVERNMENT ACCOUNTABILITY OFFICE STUDY ON REVOCATION OF
SECURITY CLEARANCES.
(a) Requirement- The Comptroller General shall conduct a study of
security clearance revocations, taking effect after 1996, with
respect to personnel that filed claims under chapter 12 of title
5, United States Code, in connection therewith. The study shall
consist of an examination of the number of such clearances
revoked, the number restored, and the relationship, if any,
between the resolution of claims filed under such chapter and the
restoration of such clearances.
(b) Report- Not later than 270 days after the date of the
enactment of this Act, the Comptroller General shall submit to the
Committee on Oversight and Government Reform of the House of
Representatives and the Committee on Homeland Security and
Governmental Affairs of the Senate a report on the results of the
study required by subsection (a).
SEC. 1269. ALTERNATIVE RECOURSE.
(a) In General- Section 1221 of title 5, United States Code, is
amended by adding at the end the following:
`(k)(1) If, in the case of an employee, former employee, or
applicant for employment who seeks corrective action (or on behalf
of whom corrective action is sought) from the Merit Systems
Protection Board based on an alleged prohibited personnel practice
described in section 2302(b)(8) or 2302(b)(9)(B)-(D), no final
order or decision is issued by the Board within 180 days after the
date on which a request for such corrective action has been duly
submitted (or, in the event that a final order or decision is
issued by the Board, whether within that 180-day period or
thereafter, then, within 90 days after such final order or
decision is issued, and so long as such employee, former employee,
or applicant has not filed a petition for judicial review of such
order or decision under subsection (h))--
`(A) such employee, former employee, or applicant may, after
providing written notice to the Board, bring an action at
law or equity for de novo review in the appropriate United
States district court, which shall have jurisdiction over
such action without regard to the amount in controversy, and
which action shall, at the request of either party to such
action, be tried by the court with a jury; and
`(B) in any such action, the court--
`(i) shall apply the standards set forth in subsection
(e); and
`(ii) may award any relief which the court considers
appropriate, including any relief described in
subsection (g).
An appeal from a final decision of a district court in an action
under this paragraph may, at the election of the appellant, be
taken to the Court of Appeals for the Federal Circuit (which shall
have jurisdiction of such appeal), in lieu of the United States
court of appeals for the circuit embracing the district in which
the action was brought.
`(2) For purposes of this subsection, the term `appropriate United
States district court', as used with respect to an alleged
prohibited personnel practice, means the United States district
court for the district in which the prohibited personnel practice
is alleged to have been committed, the judicial district in which
the employment records relevant to such practice are maintained
and administered, or the judicial district in which resides the
employee, former employee, or applicant for employment allegedly
affected by such practice.
`(3) This subsection applies with respect to any appeal, petition,
or other request for corrective action duly submitted to the
Board, whether pursuant to section 1214(b)(2), the preceding
provisions of this section, section 7513(d), or any otherwise
applicable provisions of law, rule, or regulation.'.
(b) Review of MSPB Decisions- Section 7703(b) of such title 5 is
amended--
(1) in the first sentence of paragraph (1), by striking `the
United States Court of Appeals for the Federal Circuit' and
inserting `the appropriate United States court of appeals'; and
(2) by adding at the end the following:
`(3) For purposes of the first sentence of paragraph (1), the term
`appropriate United States court of appeals' means the United
States Court of Appeals for the Federal Circuit, except that in
the case of a prohibited personnel practice described in section
2302(b)(8) or 2302(b)(9)(B)-(D) (other than a case that,
disregarding this paragraph, would otherwise be subject to
paragraph (2)), such term means the United States Court of Appeals
for the Federal Circuit and any United States court of appeals
having jurisdiction over appeals from any United States district
court which, under section 1221(k)(2), would be an appropriate
United States district court for purposes of such prohibited
personnel practice.'.
(c) Compensatory Damages- Section 1221(g)(1)(A)(ii) of such title
5 is amended by striking all after `travel expenses,' and
inserting `any other reasonable and foreseeable consequential
damages, and compensatory damages (including attorney's fees,
interest, reasonable expert witness fees, and costs).'.
(d) Conforming Amendments-
(1) Section 1221(h) of such title 5 is amended by adding at
the end the following:
`(3) Judicial review under this subsection shall not be available
with respect to any decision or order as to which the employee,
former employee, or applicant has filed a petition for judicial
review under subsection (k).'.
(2) Section 7703(c) of such title 5 is amended by striking
`court.' and inserting `court, and in the case of a
prohibited personnel practice described in section
2302(b)(8) or 2302(b)(9)(B)-(D) brought under any provision
of law, rule, or regulation described in section 1221(k)(3),
the employee or applicant shall have the right to de novo
review in accordance with section 1221(k).'.
SEC. 1270. NATIONAL SECURITY WHISTLEBLOWER RIGHTS.
(a) In General- Chapter 23 of title 5, United States Code, is
amended by inserting after section 2303 the following:
`Sec. 2303a. National security whistleblower rights
`(a) Prohibition of Reprisals-
`(1) IN GENERAL- In addition to any rights provided in
section 2303 of this title, title VII of Public Law 105-272,
or any other provision of law, an employee or former
employee in a covered agency may not be discharged, demoted,
or otherwise discriminated against (including by denying,
suspending, or revoking a security clearance, or by
otherwise restricting access to classified or sensitive
information) as a reprisal for making a disclosure described
in paragraph (2).
`(2) DISCLOSURES DESCRIBED- A disclosure described in this
paragraph is any disclosure of covered information which is
made--
`(A) by an employee or former employee in a covered
agency (without restriction as to time, place, form,
motive, context, or prior disclosure made to any
person by an employee or former employee, including a
disclosure made in the course of an employee's
duties); and
`(B) to an authorized Member of Congress, an
authorized official of an Executive agency, or the
Inspector General of the covered agency in which such
employee or former employee is or was employed.
`(b) Investigation of Complaints- An employee or former employee
in a covered agency who believes that such employee or former
employee has been subjected to a reprisal prohibited by subsection
(a) may submit a complaint to the Inspector General and the head
of the covered agency. The Inspector General shall investigate the
complaint and, unless the Inspector General determines that the
complaint is frivolous, submit a report of the findings of the
investigation within 120 days to the employee or former employee
(as the case may be) and to the head of the covered agency.
`(c) Remedy-
`(1) Within 180 days of the filing of the complaint, the
head of the covered agency shall, taking into consideration
the report of the Inspector General under subsection (b) (if
any), determine whether the employee or former employee has
been subjected to a reprisal prohibited by subsection (a),
and shall either issue an order denying relief or shall
implement corrective action to return the employee or former
employee, as nearly as possible, to the position he would
have held had the reprisal not occurred, including voiding
any directive or order denying, suspending, or revoking a
security clearance or otherwise restricting access to
classified or sensitive information that constituted a
reprisal, as well as providing back pay and related
benefits, medical costs incurred, travel expenses, any other
reasonable and foreseeable consequential damages, and
compensatory damages (including attorney's fees, interest,
reasonable expert witness fees, and costs). If the head of
the covered agency issues an order denying relief, he shall
issue a report to the employee or former employee detailing
the reasons for the denial.
`(2)(A) If the head of the covered agency, in the process of
implementing corrective action under paragraph (1), voids a
directive or order denying, suspending, or revoking a
security clearance or otherwise restricting access to
classified or sensitive information that constituted a
reprisal, the head of the covered agency may re-initiate
procedures to issue a directive or order denying,
suspending, or revoking a security clearance or otherwise
restricting access to classified or sensitive information
only if those re-initiated procedures are based exclusively
on national security concerns and are unrelated to the
actions constituting the original reprisal.
`(B) In any case in which the head of a covered agency
re-initiates procedures under subparagraph (A), the head of
the covered agency shall issue an unclassified report to its
Inspector General and to authorized Members of Congress
(with a classified annex, if necessary), detailing the
circumstances of the agency's re-initiated procedures and
describing the manner in which those procedures are based
exclusively on national security concerns and are unrelated
to the actions constituting the original reprisal. The head
of the covered agency shall also provide periodic updates to
the Inspector General and authorized Members of Congress
detailing any significant actions taken as a result of those
procedures, and shall respond promptly to inquiries from
authorized Members of Congress regarding the status of those
procedures.
`(3) If the head of the covered agency has not made a
determination under paragraph (1) within 180 days of the
filing of the complaint (or he has issued an order denying
relief, in whole or in part, whether within that 180-day
period or thereafter, then, within 90 days after such order
is issued), the employee or former employee may bring an
action at law or equity for de novo review to seek any
corrective action described in paragraph (1) in the
appropriate United States district court (as defined by
section 1221(k)(2)), which shall have jurisdiction over such
action without regard to the amount in controversy. An
appeal from a final decision of a district court in an
action under this paragraph may, at the election of the
appellant, be taken to the Court of Appeals for the Federal
Circuit (which shall have jurisdiction of such appeal), in
lieu of the United States court of appeals for the circuit
embracing the district in which the action was brought.
`(4) An employee or former employee adversely affected or
aggrieved by an order issued under paragraph (1), or who
seeks review of any corrective action determined under
paragraph (1), may obtain judicial review of such order or
determination in the United States Court of Appeals for the
Federal Circuit or any United States court of appeals having
jurisdiction over appeals from any United States district
court which, under section 1221(k)(2), would be an
appropriate United States district court. No petition
seeking such review may be filed more than 60 days after
issuance of the order or the determination to implement
corrective action by the head of the agency. Review shall
conform to chapter 7.
`(5)(A) If, in any action for damages or relief under
paragraph (3) or (4), an Executive agency moves to withhold
information from discovery based on a claim that disclosure
would be inimical to national security by asserting the
privilege commonly referred to as the `state secrets
privilege', and if the assertion of such privilege prevents
the employee or former employee from establishing an element
in support of the employee's or former employee's claim, the
court shall resolve the disputed issue of fact or law in
favor of the employee or former employee, provided that an
Inspector General investigation under subsection (b) has
resulted in substantial confirmation of that element, or
those elements, of the employee's or former employee's claim.
`(B) In any case in which an Executive agency asserts the
privilege commonly referred to as the `state secrets
privilege', whether or not an Inspector General has
conducted an investigation under subsection (b), the head of
that agency shall, at the same time it asserts the
privilege, issue a report to authorized Members of Congress,
accompanied by a classified annex if necessary, describing
the reasons for the assertion, explaining why the court
hearing the matter does not have the ability to maintain the
protection of classified information related to the
assertion, detailing the steps the agency has taken to
arrive at a mutually agreeable settlement with the employee
or former employee, setting forth the date on which the
classified information at issue will be declassified, and
providing all relevant information about the underlying
substantive matter.
`(d) Applicability to Non-Covered Agencies- An employee or former
employee in an Executive agency (or element or unit thereof) that
is not a covered agency shall, for purposes of any disclosure of
covered information (as described in subsection (a)(2)) which
consists in whole or in part of classified or sensitive
information, be entitled to the same protections, rights, and
remedies under this section as if that Executive agency (or
element or unit thereof) were a covered agency.
`(e) Construction- Nothing in this section may be construed--
`(1) to authorize the discharge of, demotion of, or
discrimination against an employee or former employee for a
disclosure other than a disclosure protected by subsection
(a) or (d) of this section or to modify or derogate from a
right or remedy otherwise available to an employee or former
employee; or
`(2) to preempt, modify, limit, or derogate any rights or
remedies available to an employee or former employee under
any other provision of law, rule, or regulation (including
the Lloyd-La Follette Act).
No court or administrative agency may require the exhaustion of
any right or remedy under this section as a condition for pursuing
any other right or remedy otherwise available to an employee or
former employee under any other provision of law, rule, or
regulation (as referred to in paragraph (2)).
`(f) Definitions- For purposes of this section--
`(1) the term `covered information', as used with respect to
an employee or former employee, means any information
(including classified or sensitive information) which the
employee or former employee reasonably believes evidences--
`(A) any violation of any law, rule, or regulation; or
`(B) gross mismanagement, a gross waste of funds, an
abuse of authority, or a substantial and specific
danger to public health or safety;
`(2) the term `covered agency' means--
`(A) the Federal Bureau of Investigation, the Office
of the Director of National Intelligence, the Central
Intelligence Agency, the Defense Intelligence Agency,
the National Geospatial-Intelligence Agency, the
National Security Agency, and the National
Reconnaissance Office; and
`(B) any other Executive agency, or element or unit
thereof, determined by the President under section
2302(a)(2)(C)(ii)(II) to have as its principal
function the conduct of foreign intelligence or
counterintelligence activities;
`(3) the term `authorized Member of Congress' means--
`(A) with respect to covered information about sources
and methods of the Central Intelligence Agency, the
Director of National Intelligence, and the National
Intelligence Program (as defined in section 3(6) of
the National Security Act of 1947), a member of the
House Permanent Select Committee on Intelligence, the
Senate Select Committee on Intelligence, or any other
committees of the House of Representatives or Senate
to which this type of information is customarily provided;
`(B) with respect to special access programs specified
in section 119 of title 10, an appropriate member of
the Congressional defense committees (as defined in
such section); and
`(C) with respect to other covered information, a
member of the House Permanent Select Committee on
Intelligence, the Senate Select Committee on
Intelligence, the House Committee on Oversight and
Government Reform, the Senate Committee on Homeland
Security and Governmental Affairs, or any other
committees of the House of Representatives or the
Senate that have oversight over the program which the
covered information concerns; and
`(4) the term `authorized official of an Executive agency'
shall have such meaning as the Office of Personnel
Management shall by regulation prescribe, except that such
term shall, with respect to any employee or former employee
in an agency, include the head, the general counsel, and the
ombudsman of such agency.'.
(b) Clerical Amendment- The table of sections for chapter 23 of
title 5, United States Code, is amended by inserting after the
item relating to section 2303 the following:
`2303a. National security whistleblower rights.'.
SEC. 1271. ENHANCEMENT OF CONTRACTOR EMPLOYEE WHISTLEBLOWER
PROTECTIONS.
(a) Civilian Agency Contracts- Section 315(c) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
265(c)) is amended--
(1) in paragraph (1), by striking `If the head' and all that
follows through `actions:' and inserting the following: `Not
later than 180 days after submission of a complaint under
subsection (b), the head of the executive agency concerned
shall determine whether the contractor concerned has
subjected the complainant to a reprisal prohibited by
subsection (a) and shall either issue an order denying
relief or shall take one or more of the following actions:'; and
(2) by redesignating paragraph (3) as paragraph (4) and
adding after paragraph (2) the following new paragraph (3):
`(3) If the head of an executive agency has not issued an order
within 180 days after the submission of a complaint under
subsection (b) and there is no showing that such delay is due to
the bad faith of the complainant, the complainant shall be deemed
to have exhausted his administrative remedies with respect to the
complaint, and the complainant may bring an action at law or
equity for de novo review to seek compensatory damages and other
relief available under this section in the appropriate district
court of the United States, which shall have jurisdiction over
such an action without regard to the amount in controversy, and
which action shall, at the request of either party to such action,
be tried by the court with a jury.'.
(b) Armed Services Contracts- Section 2409(c) of title 10, United
States Code, is amended--
(1) in paragraph (1), by striking `If the head' and all that
follows through `actions:' and inserting the following: `Not
later than 180 days after submission of a complaint under
subsection (b), the head of the agency concerned shall
determine whether the contractor concerned has subjected the
complainant to a reprisal prohibited by subsection (a) and
shall either issue an order denying relief or shall take one
or more of the following actions:'; and
(2) by redesignating paragraph (3) as paragraph (4) and
adding after paragraph (2) the following new paragraph (3):
`(3) If the head of an agency has not issued an order within 180
days after the submission of a complaint under subsection (b) and
there is no showing that such delay is due to the bad faith of the
complainant, the complainant shall be deemed to have exhausted his
administrative remedies with respect to the complaint, and the
complainant may bring an action at law or equity for de novo
review to seek compensatory damages and other relief available
under this section in the appropriate district court of the United
States, which shall have jurisdiction over such an action without
regard to the amount in controversy, and which action shall, at
the request of either party to such action, be tried by the court
with a jury.'.
SEC. 1272. PROHIBITED PERSONNEL PRACTICES AFFECTING THE
TRANSPORTATION SECURITY ADMINISTRATION.
(a) In General- Chapter 23 of title 5, United States Code, is
amended--
(1) by redesignating sections 2304 and 2305 as sections 2305
and 2306, respectively; and
(2) by inserting after section 2303a (as inserted by section
1270) the following:
`Sec. 2304. Prohibited personnel practices affecting the
Transportation Security Administration
`(a) In General- Notwithstanding any other provision of law, any
individual holding or applying for a position within the
Transportation Security Administration shall be covered by--
`(1) the provisions of section 2302(b)(1), (8), and (9);
`(2) any provision of law implementing section 2302(b)(1),
(8), or (9) by providing any right or remedy available to an
employee or applicant for employment in the civil service; and
`(3) any rule or regulation prescribed under any provision
of law referred to in paragraph (1) or (2).
`(b) Rule of Construction- Nothing in this section shall be
construed to affect any rights, apart from those described in
subsection (a), to which an individual described in subsection (a)
might otherwise be entitled under law.
`(c) Effective Date- This section shall take effect as of the date
of the enactment of this section.'.
(b) Clerical Amendment- The table of sections for chapter 23 of
title 5, United States Code, is amended by striking the items
relating to sections 2304 and 2305, respectively, and by inserting
the following:
`2304. Prohibited personnel practices affecting the
Transportation Security Administration.
`2305. Responsibility of the Government Accountability Office.
`2306. Coordination with certain other provisions of law.'.
SEC. 1273. CLARIFICATION OF WHISTLEBLOWER RIGHTS RELATING TO
SCIENTIFIC AND OTHER RESEARCH.
(a) In General- Section 2302 of title 5, United States Code, is
amended by adding at the end the following:
`(f) As used in section 2302(b)(8), the term `abuse of authority'
includes--
`(1) any action that compromises the validity or accuracy of
federally funded research or analysis;
`(2) the dissemination of false or misleading scientific,
medical, or technical information;
`(3) any action that restricts or prevents an employee or
any person performing federally funded research or analysis
from publishing in peer-reviewed journals or other
scientific publications or making oral presentations at
professional society meetings or other meetings of their
peers; and
`(4) any action that discriminates for or against any
employee or applicant for employment on the basis of
religion, as defined by section 1273(b) of the Whistleblower
Protection Enhancement Act of 2009.'.
(b) Definition- As used in section 2302(f)(3) of title 5, United
States Code (as amended by subsection (a)), the term `on the basis
of religion' means--
(1) prohibiting personal religious expression by Federal
employees to the greatest extent possible, consistent with
requirements of law and interests in workplace efficiency;
(2) requiring religious participation or non-participation
as a condition of employment, or permitting religious
harassment;
(3) failing to accommodate employees' exercise of their
religion;
(4) failing to treat all employees with the same respect and
consideration, regardless of their religion (or lack thereof);
(5) restricting personal religious expression by employees
in the Federal workplace except where the employee's
interest in the expression is outweighed by the government's
interest in the efficient provision of public services or
where the expression intrudes upon the legitimate rights of
other employees or creates the appearance, to a reasonable
observer, of an official endorsement of religion;
(6) regulating employees' personal religious expression on
the basis of its content or viewpoint, or suppressing
employees' private religious speech in the workplace while
leaving unregulated other private employee speech that has a
comparable effect on the efficiency of the workplace,
including ideological speech on politics and other topics;
(7) failing to exercise their authority in an evenhanded and
restrained manner, and with regard for the fact that
Americans are used to expressions of disagreement on
controversial subjects, including religious ones;
(8) failing to permit an employee to engage in private
religious expression in personal work areas not regularly
open to the public to the same extent that they may engage
in nonreligious private expression, subject to reasonable
content- and viewpoint-neutral standards and restrictions;
(9) failing to permit an employee to engage in religious
expression with fellow employees, to the same extent that
they may engage in comparable nonreligious private
expression, subject to reasonable and content-neutral
standards and restrictions;
(10) failing to permit an employee to engage in religious
expression directed at fellow employees, and may even
attempt to persuade fellow employees of the correctness of
their religious views, to the same extent as those employees
may engage in comparable speech not involving religion;
(11) inhibiting an employee from urging a colleague to
participate or not to participate in religious activities to
the same extent that, consistent with concerns of workplace
efficiency, they may urge their colleagues to engage in or
refrain from other personal endeavors, except that the
employee must refrain from such expression when a fellow
employee asks that it stop or otherwise demonstrates that it
is unwelcome;
(12) failing to prohibit expression that is part of a larger
pattern of verbal attacks on fellow employees (or a specific
employee) not sharing the faith of the speaker;
(13) preventing an employee from--
(A) wearing personal religious jewelry absent special
circumstances (such as safety concerns) that might
require a ban on all similar nonreligious jewelry; or
(B) displaying religious art and literature in their
personal work areas to the same extent that they may
display other art and literature, so long as the
viewing public would reasonably understand the
religious expression to be that of the employee acting
in her personal capacity, and not that of the
government itself;
(14) prohibiting an employee from using their private time
to discuss religion with willing coworkers in public spaces
to the same extent as they may discuss other subjects, so
long as the public would reasonably understand the religious
expression to be that of the employees acting in their
personal capacities;
(15) discriminating against an employee on the basis of
their religion, religious beliefs, or views concerning their
religion by promoting, refusing to promote, hiring, refusing
to hire, or otherwise favoring or disfavoring, an employee
or potential employee because of his or her religion,
religious beliefs, or views concerning religion, or by
explicitly or implicitly, insisting that the employee
participate in religious activities as a condition of
continued employment, promotion, salary increases, preferred
job assignments, or any other incidents of employment or
insisting that an employee refrain from participating in
religious activities outside the workplace except pursuant
to otherwise legal, neutral restrictions that apply to
employees' off-duty conduct and expression in general (such
as restrictions on political activities prohibited by the
Hatch Act);
(16) prohibiting a supervisor's religious expression where
it is not coercive and is understood to be his or her
personal view, in the same way and to the same extent as
other constitutionally valued speech;
(17) permitting a hostile environment, or religious
harassment, in the form of religiously discriminatory
intimidation, or pervasive or severe religious ridicule or
insult, whether by supervisors or fellow workers, as
determined by its frequency or repetitiveness, and severity;
(18) failing to accommodate an employee's exercise of their
religion unless such accommodation would impose an undue
hardship on the conduct of the agency's operations, based on
real rather than speculative or hypothetical cost and
without disfavoring other, nonreligious accommodations; and
(19) in those cases where an agency's work rule imposes a
substantial burden on a particular employee's exercise of
religion, failing to grant the employee an exemption from
that rule, absent a compelling interest in denying the
exemption and where there is no less restrictive means of
furthering that interest.
(c) Rule of Construction- Nothing in this section shall be
construed to create any new right, benefit, or trust
responsibility, substantive or procedural, enforceable at law or
equity by a party against the United States, its agencies, its
officers, or any person.
SEC. 1274. EFFECTIVE DATE.
This part shall take effect 30 days after the date of the
enactment of this Act, except as provided in the amendment made by
section 1272(a)(2).
TITLE II--AGRICULTURE, NUTRITION, AND RURAL DEVELOPMENT
DEPARTMENT OF AGRICULTURE
Agriculture Buildings and Facilities and Rental Payments
For an additional amount for `Agriculture Buildings and Facilities
and Rental Payments', $44,000,000, for necessary construction,
repair, and improvement activities: /Provided/, That section 1106
of this Act shall not apply to this appropriation.
Agricultural Research Service
buildings and facilities
For an additional amount for `Buildings and Facilities',
$209,000,000, for work on deferred maintenance at Agricultural
Research Service facilities: /Provided/, That priority in the use
of such funds shall be given to critical deferred maintenance, to
projects that can be completed, and to activities that can
commence promptly following enactment of this Act.
Farm Service Agency
salaries and expenses
For an additional amount for `Salaries and Expenses,'
$245,000,000, for the purpose of maintaining and modernizing the
information technology system: /Provided/, That section 1106 of
this Act shall not apply to this appropriation.
Natural Resources Conservation Service
watershed and flood prevention operations
For an additional amount for `Watershed and Flood Prevention
Operations', $350,000,000, of which $175,000,000 is for necessary
expenses to purchase and restore floodplain easements as
authorized by section 403 of the Agricultural Credit Act of 1978
(16 U.S.C. 2203) (except that no more than $50,000,000 of the
amount provided for the purchase of floodplain easements may be
obligated for projects in any one State): /Provided/, That section
1106 of this Act shall not apply to this appropriation: /Provided
further/, That priority in the use of such funds shall be given to
projects that can be fully funded and completed with the funds
appropriated in this Act, and to activities that can commence
promptly following enactment of this Act.
watershed rehabilitation program
For an additional amount for `Watershed Rehabilitation Program',
$50,000,000, for necessary expenses to carry out rehabilitation of
structural measures: /Provided/, That section 1106 of this Act
shall not apply to this appropriation: /Provided further/, That
priority in the use of such funds shall be given to projects that
can be fully funded and completed with the funds appropriated in
this Act, and to activities that can commence promptly following
enactment of this Act.
Rural Development Programs
rural community advancement program
(including transfers of funds)
For an additional amount for gross obligations for the principal
amount of direct and guaranteed loans as authorized by sections
306 and 310B and described in sections 381E(d)(1), 381E(d)(2), and
381E(d)(3) of the Consolidated Farm and Rural Development Act, to
be available from the rural community advancement program, as
follows: $5,838,000,000, of which $1,102,000,000 is for rural
community facilities direct loans, of which $2,000,000,000 is for
business and industry guaranteed loans, and of which
$2,736,000,000 is for rural water and waste disposal direct loans.
For an additional amount for the cost of direct loans, loan
guarantees, and grants, including the cost of modifying loans, as
defined in section 502 of the Congressional Budget Act of 1974, as
follows: $1,800,000,000, of which $63,000,000 is for rural
community facilities direct loans, of which $137,000,000 is for
rural community facilities grants authorized under section 306(a)
of the Consolidated Farm and Rural Development Act, of which
$87,000,000 is for business and industry guaranteed loans, of
which $13,000,000 is for rural business enterprise grants
authorized under section 310B of the Consolidated Farm and Rural
Development Act, of which $400,000,000 is for rural water and
waste disposal direct loans, and of which $1,100,000,000 is for
rural water and waste disposal grants authorized under section
306(a): /Provided/, That the amounts appropriated under this
heading shall be transferred to, and merged with, the
appropriation for `Rural Housing Service, Rural Community
Facilities Program Account', the appropriation for `Rural
Business-Cooperative Service, Rural Business Program Account', and
the appropriation for `Rural Utilities Service, Rural Water and
Waste Disposal Program Account': /Provided further/, That priority
for awarding such funds shall be given to project applications
that demonstrate that, if the application is approved, all project
elements will be fully funded: /Provided further/, That priority
for awarding such funds shall be given to project applications for
activities that can be completed if the requested funds are
provided: /Provided further/, That priority for awarding such
funds shall be given to activities that can commence promptly
following enactment of this Act.
In addition to other available funds, the Secretary of Agriculture
may use not more than 3 percent of the funds made available under
this account for administrative costs to carry out loans, loan
guarantees, and grants funded under this account, which shall be
transferred and merged with the appropriation for `Rural
Development, Salaries and Expenses' and shall remain available
until September 30, 2012: /Provided/, That the authority provided
in this paragraph shall apply to appropriations under this heading
in lieu of the provisions of section 1106 of this Act.
Funds appropriated by this Act to the Rural Community Advancement
Program for rural community facilities, rural business, and rural
water and waste disposal direct loans, loan guarantees and grants
may be transferred among these programs: /Provided/, That the
Committees on Appropriations of the House of Representatives and
the Senate shall be notified at least 15 days in advance of any
transfer.
Rural Housing Service
rural housing insurance fund program account
(including transfers of funds)
For an additional amount of gross obligations for the principal
amount of direct and guaranteed loans as authorized by title V of
the Housing Act of 1949, to be available from funds in the rural
housing insurance fund, as follows: $22,129,000,000 for loans to
section 502 borrowers, of which $4,018,000,000 shall be for direct
loans, and of which $18,111,000,000 shall be for unsubsidized
guaranteed loans.
For an additional amount for the cost of direct and guaranteed
loans, including the cost of modifying loans, as defined in
section 502 of the Congressional Budget Act of 1974, as follows:
section 502 loans, $500,000,000, of which $270,000,000 shall be
for direct loans, and of which $230,000,000 shall be for
unsubsidized guaranteed loans.
In addition to other available funds, the Secretary of Agriculture
may use not more than 3 percent of the funds made available under
this account for administrative costs to carry out loans and loan
guarantees funded under this account, of which $1,750,000 will be
committed to agency projects associated with maintaining the
compliance, safety, and soundness of the portfolio of loans
guaranteed through the section 502 guaranteed loan program:
/Provided/, These funds shall be transferred and merged with the
appropriation for `Rural Development, Salaries and Expenses': /
Provided further/, That the authority provided in this paragraph
shall apply to appropriations under this heading in lieu of the
provisions of section 1106 of this Act.
Funds appropriated by this Act to the Rural Housing Insurance Fund
Program account for section 502 direct loans and unsubsidized
guaranteed loans may be transferred between these programs:
/Provided/, That the Committees on Appropriations of the House of
Representatives and the Senate shall be notified at least 15 days
in advance of any transfer.
Rural Utilities Service
distance learning, telemedicine, and broadband program
(including transfers of funds)
For an additional amount for the cost of broadband loans and loan
guarantees, as authorized by the Rural Electrification Act of 1936
(7 U.S.C. 901 et seq.) and for grants, $2,825,000,000: /Provided/,
That the cost of direct and guaranteed loans shall be as defined
in section 502 of the Congressional Budget Act of 1974: /Provided
further/, That, notwithstanding title VI of the Rural
Electrification Act of 1936, this amount is available for grants,
loans and loan guarantees for open access broadband infrastructure
in any area of the United States: /Provided further/, That at
least 75 percent of the area to be served by a project receiving
funds from such grants, loans or loan guarantees shall be in a
rural area without sufficient access to high speed broadband
service to facilitate rural economic development, as determined by
the Secretary of Agriculture: /Provided further/, That priority
for awarding funds made available under this paragraph shall be
given to projects that provide service to the most rural residents
that do not have access to broadband service: /Provided further/,
That priority shall be given for project applications from
borrowers or former borrowers under title II of the Rural
Electrification Act of 1936 and for project applications that
include such borrowers or former borrowers: /Provided further/,
That notwithstanding section 1103 of this Act, 50 percent of the
grants, loans, and loan guarantees made available under this
heading shall be awarded not later than September 30, 2009:
/Provided further/, That priority for awarding such funds shall be
given to project applications that demonstrate that, if the
application is approved, all project elements will be fully
funded: /Provided further/, That priority for awarding such funds
shall be given to project applications for activities that can be
completed if the requested funds are provided: /Provided further/,
That priority for awarding such funds shall be given to activities
that can commence promptly following enactment of this Act:
/Provided further/, That no area of a project funded with amounts
made available under this paragraph may receive funding to provide
broadband service under the Broadband Deployment Grant Program:
/Provided further/, That the Secretary shall submit a report on
planned spending and actual obligations describing the use of
these funds not later than 90 days after the date of enactment of
this Act, and quarterly thereafter until all funds are obligated,
to the Committees on Appropriations of the House of
Representatives and the Senate.
In addition to other available funds, the Secretary may use not
more than 3 percent of the funds made available under this account
for administrative costs to carry out loans, loan guarantees, and
grants funded under this account, which shall be transferred and
merged with the appropriation for `Rural Development, Salaries and
Expenses' and shall remain available until September 30, 2012:
/Provided/, That the authority provided in this paragraph shall
apply to appropriations under this heading in lieu of the
provisions of section 1106 of this Act.
Food and Nutrition Service
special supplemental nutrition program for women, infants, and
children (wic)
For an additional amount for the special supplemental nutrition
program as authorized by section 17 of the Child Nutrition Act of
1966 (42 U.S.C. 1786), $100,000,000, for the purposes specified in
section 17(h)(10)(B)(ii) for the Secretary of Agriculture to
provide assistance to State agencies to implement new management
information systems or improve existing management information
systems for the program.
emergency food assistance program
For an additional amount for the emergency food assistance program
as authorized by section 27(a) of the Food and Nutrition Act of
2008 (7 U.S.C. 2036(a)) and section 204(a)(1) of the Emergency
Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)), $150,000,000,
of which $100,000,000 is for the purchase of commodities and of
which $50,000,000 is for costs associated with the distribution of
commodities.
GENERAL PROVISIONS, THIS TITLE
SEC. 2001. TEMPORARY INCREASE IN BENEFITS UNDER THE SUPPLEMENTAL
NUTRITION ASSISTANCE PROGRAM.
(a) Maximum Benefit Increase-
(1) IN GENERAL- Beginning the first month that begins not
less than 25 days after the date of enactment of this Act,
the value of benefits determined under section 8(a) of the
Food and Nutrition Act of 2008 and consolidated block grants
for Puerto Rico and American Samoa determined under section
19(a) of such Act shall be calculated using 113.6 percent of
the June 2008 value of the thrifty food plan as specified
under section 3(o) of such Act.
(2) TERMINATION-
(A) The authority provided by this subsection shall
terminate after September 30, 2009.
(B) Notwithstanding subparagraph (A), the Secretary of
Agriculture may not reduce the value of the maximum
allotment below the level in effect for fiscal year
2009 as a result of paragraph (1).
(b) Requirements for the Secretary- In carrying out this section,
the Secretary shall--
(1) consider the benefit increases described in subsection
(a) to be a `mass change';
(2) require a simple process for States to notify households
of the increase in benefits;
(3) consider section 16(c)(3)(A) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply to any errors
in the implementation of this section, without regard to the
120-day limit described in that section; and
(4) have the authority to take such measures as necessary to
ensure the efficient administration of the benefits provided
in this section.
(c) Administrative Expenses-
(1) IN GENERAL- For the costs of State administrative
expenses associated with carrying out this section, the
Secretary shall make available $150,000,000 in each of
fiscal years 2009 and 2010, to remain available through
September 30, 2012, of which $4,500,000 is for necessary
expenses of the Food and Nutrition Service for management
and oversight of the program and for monitoring the
integrity and evaluating the effects of the payments made
under this section.
(2) AVAILABILITY OF FUNDS- Funds described in paragraph (1)
shall be made available as grants to State agencies based on
each State's share of households that participate in the
Supplemental Nutrition Assistance Program as reported to the
Department of Agriculture for the 12-month period ending
with June, 2008.
(d) Treatment of Jobless Workers- Beginning with the first month
that begins not less than 25 days after the date of enactment of
this Act, and for each subsequent month through September 30,
2010, jobless adults who comply with work registration and
employment and training requirements under section 6, section 20,
or section 26 of the Food and Nutrition Act of 2008 (7 U.S.C.
2015, 2029, or 2035) shall not be disqualified from the
Supplemental Nutrition Assistance Program because of the
provisions of section 6(o)(2) of such Act (7 U.S.C. 2015(o)(2)).
Beginning on October 1, 2010, for the purposes of section 6(o), a
State agency shall disregard any period during which an individual
received Supplemental Nutrition Assistance Program benefits prior
to October 1, 2010.
(e) Funding- There is appropriated to the Secretary of Agriculture
such sums as are necessary to carry out this section, to remain
available until expended. Section 1106 of this Act shall not apply
to this appropriation.
SEC. 2002. AFTERSCHOOL FEEDING PROGRAM FOR AT-RISK CHILDREN.
Section 17(r) of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1766(r)) is amended by striking paragraph (5).
TITLE III--COMMERCE, JUSTICE, AND SCIENCE
Subtitle A--Commerce
DEPARTMENT OF COMMERCE
Economic Development Administration
Economic Development Assistance Programs
(including transfer of funds)
For an additional amount for `Economic Development Assistance
Programs', $250,000,000: /Provided/, That the amount set aside
from this appropriation pursuant to section 1106 of this Act shall
not exceed 2 percent instead of the percentage specified in such
section: /Provided further/, That the amount set aside pursuant to
the previous proviso shall be transferred to and merged with the
appropriation for `Salaries and Expenses' for purposes of program
administration and oversight: /Provided further/, That up to
$50,000,000 may be transferred to federally authorized regional
economic development commissions.
Bureau of the Census
periodic censuses and programs
For an additional amount for `Periodic Censuses and Programs',
$1,000,000,000: /Provided/, That section 1106 of this Act shall
not apply to funds provided under this heading.
National Telecommunications and Information Administration
salaries and expenses
For an additional amount for `Salaries and Expenses',
$350,000,000, to remain available until September 30, 2011:
/Provided/, That funds shall be available to establish the State
Broadband Data and Development Grant Program, as authorized by
Public Law 110-385, for the development and implementation of
statewide initiatives to identify and track the availability and
adoption of broadband services within each State, and to develop
and maintain a nationwide broadband inventory map, as authorized
by section 6001 of division B of this Act.
wireless and broadband deployment grant programs
(including transfer of funds)
For necessary expenses related to the Wireless and Broadband
Deployment Grant Programs established by section 6002 of division
B of this Act, $2,825,000,000, of which $1,000,000,000 shall be
for Wireless Deployment Grants and $1,825,000,000 shall be for
Broadband Deployment Grants: /Provided/, That the National
Telecommunications and Information Administration shall submit a
report on planned spending and actual obligations describing the
use of these funds not later than 120 days after the date of
enactment of this Act, and an update report not later than 60 days
following the initial report, to the Committees on Appropriations
of the House of Representatives and the Senate, the Committee on
Energy and Commerce of the House of Representatives, and the
Committee on Commerce, Science, and Transportation of the Senate:
/Provided further/, That notwithstanding section 1103 of this Act,
50 percent of the grants made available under this heading shall
be awarded not later than September 30, 2009: /Provided further/,
That up to 20 percent of the funds provided under this heading for
Wireless Deployment Grants and Broadband Deployment Grants may be
transferred between these programs: /Provided further/, That the
Committees on Appropriations of the House of Representatives and
the Senate shall be notified at least 15 days in advance of any
transfer.
digital-to-analog converter box program
Notwithstanding any other provision of law, and in addition to
amounts otherwise provided in any other Act, for costs associated
with the Digital-to-Analog Converter Box Program, $650,000,000, to
be available until September 30, 2009: /Provided/, That these
funds shall be available for coupons and related activities,
including but not limited to education, consumer support and
outreach, as deemed appropriate and necessary to ensure a timely
conversion of analog to digital television.
National Institute of Standards and Technology
scientific and technical research and services
For an additional amount for `Scientific and Technical Research
and Services', $100,000,000.
industrial technology services
For an additional amount for `Industrial Technology Services',
$100,000,000, of which $70,000,000 shall be available for the
necessary expenses of the Technology Innovation Program and
$30,000,000 shall be available for the necessary expenses of the
Hollings Manufacturing Extension Partnership.
construction of research facilities
For an additional amount for `Construction of Research
Facilities', as authorized by sections 13 through 15 of the Act of
March 13, 1901 (15 U.S.C. 278c-278e), $300,000,000, for a
competitive construction grant program for research science
buildings: /Provided further/, That for peer-reviewed grants made
under this heading, the time limitation provided in section
1103(b) of this Act shall be 120 days.
National Oceanic and Atmospheric Administration
operations, research, and facilities
For an additional amount for `Operations, Research, and
Facilities', $400,000,000, for habitat restoration and mitigation
activities.
procurement, acquisition and construction
For an additional amount for `Procurement, Acquisition and
Construction', $600,000,000, for accelerating satellite
development and acquisition, acquiring climate sensors and climate
modeling capacity, and establishing climate data records:
/Provided further/, That not less than $140,000,000 shall be
available for climate data modeling.
Subtitle B--Justice
DEPARTMENT OF JUSTICE
State and Local Law Enforcement Activities
Office of Justice Programs
state and local law enforcement assistance
For an additional amount for `State and Local Law Enforcement
Assistance', $3,000,000,000, to be available for the Edward Byrne
Memorial Justice Assistance Grant Program as authorized by subpart
1 of part E of title I of the Omnibus Crime Control and Safe
Streets Act of 1968, (except that section 1001(c), and the special
rules for Puerto Rico under section 505(g), of such Act shall not
apply for purposes of this Act): /Provided/, That section 1106 of
this Act shall not apply to funds provided under this heading.
community oriented policing services
For an additional amount for `Community Oriented Policing
Services', $1,000,000,000, to be available for grants under
section 1701 of title I of the 1968 Act (42 U.S.C. 3796dd) for the
hiring and rehiring of additional career law enforcement officers
under part Q of such title notwithstanding subsection (i) of such
section: /Provided/, That for peer-reviewed grants made under this
heading, the time limitation provided in section 1103(b) of this
Act shall be 120 days.
GENERAL PROVISIONS, THIS SUBTITLE
SEC. 3201. WAIVER OF MATCHING REQUIREMENT AND SALARY LIMIT UNDER
COPS PROGRAM.
Sections 1701(g) and 1704(c) of the Omnibus Crime Control and Safe
Street Act of 1968 (42 U.S.C. 3796dd(g) and 3796dd-3(c)) shall not
apply with respect to funds appropriated in this or any other Act
making appropriations for fiscal year 2009 or 2010 for Community
Oriented Policing Services authorized under part Q of such Act of
1968.
Subtitle C--Science
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
science
For an additional amount for `Science', $400,000,000, of which not
less than $250,000,000 shall be solely for accelerating the
development of the tier 1 set of Earth science climate research
missions recommended by the National Academies Decadal Survey.
aeronautics
For an additional amount for `Aeronautics', $150,000,000.
cross agency support programs
For an additional amount for `Cross Agency Support Programs', for
necessary expenses for restoration and mitigation of National
Aeronautics and Space Administration owned infrastructure and
facilities related to the consequences of hurricanes, floods, and
other natural disasters occurring during 2008 for which the
President declared a major disaster under title IV of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act of 1974,
$50,000,000.
NATIONAL SCIENCE FOUNDATION
research and related activities
For an additional amount for `Research and Related Activities',
$2,500,000,000: /Provided/, That $300,000,000 shall be available
solely for the Major Research Instrumentation program and
$200,000,000 shall be for activities authorized by title II of
Public Law 100-570 for academic research facilities modernization:
/Provided/, That for peer-reviewed grants made under this heading,
the time limitation provided in section 1103(b) of this Act shall
be 120 days.
education and human resources
For an additional amount for `Education and Human Resources',
$100,000,000: /Provided/, That $60,000,000 shall be for activities
authorized by section 7030 of Public Law 110-69 and $40,000,000
shall be for activities authorized by section 9 of the National
Science Foundation Authorization Act of 2002 (42 U.S.C. 1862n).
major research equipment and facilities construction
For an additional amount for `Major Research Equipment and
Facilities Construction', $400,000,000, which shall be available
only for approved projects.
TITLE IV--DEFENSE
DEPARTMENT OF DEFENSE
Facility Infrastructure Investments, Defense
For expenses, not otherwise provided for, to improve, repair and
modernize Department of Defense facilities, restore and modernize
Army barracks, and invest in the energy efficiency of Department
of Defense facilities, $4,500,000,000, for Facilities Sustainment,
Restoration and Modernization programs of the Department of
Defense (including minor construction and major maintenance and
repair), which shall be available as follows:
(1) `Operation and Maintenance, Army', $1,490,804,000.
(2) `Operation and Maintenance, Navy', $624,380,000.
(3) `Operation and Maintenance, Marine Corps', $128,499,000.
(4) `Operation and Maintenance, Air Force', $1,236,810,000.
(5) `Defense Health Program', $454,658,000.
(6) `Operation and Maintenance, Army Reserve', $110,899,000.
(7) `Operation and Maintenance, Navy Reserve', $62,162,000.
(8) `Operation and Maintenance, Marine Corps Reserve',
$45,038,000.
(9) `Operation and Maintenance, Air Force Reserve', $14,881,000.
(10) `Operation and Maintenance, Army National Guard',
$302,700,000.
(11) `Operation and Maintenance, Air National Guard',
$29,169,000.
Energy Research and Development, Defense
For expenses, not otherwise provided for, for research,
development, test and evaluation programs for improvements in
energy generation, transmission, regulation, use, and storage, for
military installations, military vehicles, and other military
equipment, $350,000,000, which shall be available as follows:
(1) `Research, Development, Test and Evaluation, Army',
$87,500,000.
(2) `Research, Development, Test and Evaluation, Navy',
$87,500,000.
(3) `Research, Development, Test and Evaluation, Air Force',
$87,500,000.
(4) `Research, Development, Test and Evaluation,
Defense-Wide', $87,500,000
TITLE V--ENERGY AND WATER
DEPARTMENT OF THE ARMY
Corps of Engineers--Civil
construction
For an additional amount for `Construction', $2,000,000,000:
/Provided/, That section 102 of Public Law 109-103 (33 U.S.C.
2221) shall not apply to funds provided in this paragraph:
/Provided further,/ That notwithstanding any other provision of
law, funds provided in this paragraph shall not be cost shared
with the Inland Waterways Trust Fund as authorized in Public Law
99-662: /Provided further/, That funds provided in this paragraph
may only be used for programs, projects or activities previously
funded: /Provided further/, That the Corps of Engineers is
directed to prioritize funding for activities based on the ability
to accelerate existing contracts or fully fund project elements
and contracts for such elements in a time period of 2 years after
the date of enactment of this Act giving preference to projects
and activities that are labor intensive: /Provided further/, That
funds provided in this paragraph shall be used for elements of
projects, programs or activities that can be completed using funds
provided herein: /Provided further/, That funds appropriated in
this paragraph may be used by the Secretary of the Army, acting
through the Chief of Engineers, to undertake work authorized to be
carried out in accordance with one or more of section 14 of the
Flood Control Act of 1946 (33 U.S.C. 701r), section 205 of the
Flood Control Act of 1948 (33 U.S.C. 701s), section 206 of the
Water Resources Development Act of 1996 (33 U.S.C. 2330), and
section 1135 of the Water Resources Development Act of 1986 (33
U.S.C. 2309a), notwithstanding the program cost limitations set
forth in those sections: /Provided further/, That the limitation
concerning total project costs in section 902 of the Water
Resources Development Act of 1986, as amended (33 U.S.C. 2280),
shall not apply during fiscal year 2009 to any project that
received funds provided in this title: /Provided further/, That
for projects that are being completed with funds appropriated in
this Act that are otherwise expired or lapsed for obligation,
expired or lapsed funds appropriated in this Act may be used to
pay the cost of associated supervision, inspection, overhead,
engineering and design on those projects and on subsequent claims,
if any: /Provided further/, That the Secretary of the Army shall
submit a quarterly report to the Committees on Appropriations of
the House of Representatives and the Senate detailing the
allocation, obligation and expenditures of these funds, beginning
not later than 45 days after enactment of this Act.
mississippi river and tributaries
For an additional amount for `Mississippi River and Tributaries',
$250,000,000: /Provided/, That funds provided in this paragraph
may only be used for programs, projects, or activities previously
funded: /Provided further/, That the Corps of Engineers is
directed to prioritize funding for activities based on the ability
to accelerate existing contracts or fully fund project elements
and contracts for such elements in a time period of 2 years after
the date of enactment of this Act giving preference to projects
and activities that are labor intensive: /Provided further/, That
funds provided in this paragraph shall be used for elements of
projects, programs, or activities that can be completed using
funds provided herein: /Provided further/, That for projects that
are being completed with funds appropriated in this Act that are
otherwise expired or lapsed for obligation, expired or lapsed
funds appropriated in this Act may be used to pay the cost of
associated supervision, inspection, overhead, engineering and
design on those projects and on subsequent claims, if any:
/Provided further/, That the Secretary of the Army shall submit a
quarterly report to the Committees on Appropriations of the House
of Representatives and the Senate detailing the allocation,
obligation and expenditures of these funds, beginning not later
than 45 days after enactment of this Act.
operation and maintenance
For an additional amount for `Operation and Maintenance',
$2,225,000,000: /Provided/, That the Corps of Engineers is
directed to prioritize funding for activities based on the ability
to accelerate existing contracts or fully fund project elements
and contracts for such elements in a time period of 2 years after
the date of enactment of this Act giving preference to projects
and activities that are labor intensive: /Provided further/, That
funds provided in this paragraph shall be used for elements of
projects, programs, or activities that can be completed using
funds provided herein: /Provided further/, That for projects that
are being completed with funds appropriated in this Act that are
otherwise expired or lapsed for obligation, expired or lapsed
funds appropriated in this Act may be used to pay the cost of
associated supervision, inspection, overhead, engineering and
design on those projects and on subsequent claims, if any:
/Provided further/, That the Secretary of the Army shall submit a
quarterly report to the Committees on Appropriations of the House
of Representatives and the Senate detailing the allocation,
obligation and expenditures of these funds, beginning not later
than 45 days after enactment of this Act.
regulatory program
For an additional amount for `Regulatory Program', $25,000,000.
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
water and related resources
For an additional amount for `Water and Related Resources',
$500,000,000: /Provided/, That of the amount appropriated under
this heading, not less than $126,000,000 shall be used for water
reclamation and reuse projects authorized under title XVI of
Public Law 102-575: /Provided further/, That of the amount
appropriated under this heading, not less than $80,000,000 shall
be used for rural water projects and these funds shall be expended
primarily on water intake and treatment facilities of such
projects: /Provided further/, That the costs of reimbursable
activities, other than for maintenance and rehabilitation, carried
out with funds made available under this heading shall be repaid
pursuant to existing authorities and agreements: /Provided
further/, That the costs of maintenance and rehabilitation
activities carried out with funds provided in this Act shall be
repaid pursuant to existing authority, except the length of
repayment period shall be determined on needs-based criteria to be
established and adopted by the Commissioner of the Bureau of
Reclamation, but in no case shall the repayment period exceed 25
years.
DEPARTMENT OF ENERGY
ENERGY PROGRAMS
Energy Efficiency and Renewable Energy
For an additional amount for `Energy Efficiency and Renewable
Energy', $18,500,000,000, which shall be used as follows:
(1) $2,000,000,000 shall be for expenses necessary for
energy efficiency and renewable energy research,
development, demonstration and deployment activities, to
accelerate the development of technologies, to include
advanced batteries, of which not less than $800,000,000 is
for biomass and $400,000,000 is for geothermal technologies.
(2) $500,000,000 shall be for expenses necessary to
implement the programs authorized under part E of title III
of the Energy Policy and Conservation Act (42 U.S.C. 6341 et
seq.).
(3) $1,000,000,000 shall be for the cost of grants to
institutional entities for energy sustainability and
efficiency under section 399A of the Energy Policy and
Conservation Act (42 U.S.C. 6371h-1).
(4) $6,200,000,000 shall be for the Weatherization
Assistance Program under part A of title IV of the Energy
Conservation and Production Act (42 U.S.C. 6861 et seq.).
(5) $3,500,000,000 shall be for Energy Efficiency and
Conservation Block Grants, for implementation of programs
authorized under subtitle E of title V of the Energy
Independence and Security Act of 2007 (42 U.S.C. 17151 et seq.).
(6) $3,400,000,000 shall be for the State Energy Program
authorized under part D of title III of the Energy Policy
and Conservation Act (42 U.S.C. 6321).
(7) $200,000,000 shall be for expenses necessary to
implement the programs authorized under section 131 of the
Energy Independence and Security Act of 2007 (42 U.S.C. 17011).
(8) $300,000,000 shall be for expenses necessary to
implement the program authorized under section 124 of the
Energy Policy Act of 2005 (42 U.S.C. 15821) and the Energy
Star program.
(9) $400,000,000 shall be for expenses necessary to
implement the program authorized under section 721 of the
Energy Policy Act of 2005 (42 U.S.C. 16071).
(10) $1,000,000,000 shall be for expenses necessary for the
manufacturing of advanced batteries authorized under section
136(b)(1)(B) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17013(b)(1)(B)):
/Provided/, That notwithstanding section 3304 of title 5, United
States Code, and without regard to the provisions of sections 3309
through 3318 of such title 5, the Secretary of Energy may, upon a
determination that there is a severe shortage of candidates or a
critical hiring need for particular positions, recruit and
directly appoint highly qualified individuals into the competitive
service: /Provided further,/ That such authority shall not apply
to positions in the Excepted Service or the Senior Executive
Service: /Provided further/, That any action authorized herein
shall be consistent with the merit principles of section 2301 of
such title 5, and the Department shall comply with the public
notice requirements of section 3327 of such title 5.
Electricity Delivery and Energy Reliability
For an additional amount for `Electricity Delivery and Energy
Reliability,' $4,500,000,000: /Provided/, That funds shall be
available for expenses necessary for electricity delivery and
energy reliability activities to modernize the electric grid,
enhance security and reliability of the energy infrastructure,
energy storage research, development, demonstration and
deployment, and facilitate recovery from disruptions to the energy
supply, and for implementation of programs authorized under title
XIII of the Energy Independence and Security Act of 2007 (42
U.S.C. 17381 et seq.): /Provided further/, That of such amounts,
$100,000,000 shall be for worker training: /Provided further/,
That the Secretary of Energy may use or transfer amounts provided
under this heading to carry out new authority for transmission
improvements, if such authority is enacted in any subsequent Act,
consistent with existing fiscal management practices and procedures.
Advanced Battery Loan Guarantee Program
For the cost of guaranteed loans as authorized by section 135 of
the Energy Independence and Security Act of 2007 (42 U.S.C.
17012), $1,000,000,000, to remain available until expended:
/Provided/, That of such amount, $10,000,000 shall be used for
administrative expenses in carrying out the guaranteed loan
program, and shall be in lieu of the amount set aside under
section 1106 of this Act: /Provided further/, That the cost of
such loans, including the cost of modifying such loans, shall be
as defined in section 502 of the Congressional Budget Act of 1974.
Institutional Loan Guarantee Program
For the cost of guaranteed loans as authorized by section 399A of
the Energy Policy and Conservation Act (42 U.S.C. 6371h-1),
$500,000,000: /Provided/, That of such amount, $10,000,000 shall
be used for administrative expenses in carrying out the guaranteed
loan program, and shall be in lieu of the amount set aside under
section 1106 of this Act: /Provided further/, That the cost of
such loans, including the cost of modifying such loans, shall be
as defined in section 502 of the Congressional Budget Act of 1974.
Innovative Technology Loan Guarantee Program
For an additional amount for `Innovative Technology Loan Guarantee
Program' for the cost of guaranteed loans authorized by section
1705 of the Energy Policy Act of 2005, $8,000,000,000: /Provided/,
That of such amount, $25,000,000 shall be used for administrative
expenses in carrying out the guaranteed loan program, and shall be
in lieu of the amount set aside under section 1106 of this Act:
/Provided further/, That the cost of such loans, including the
cost of modifying such loans, shall be as defined in section 502
of the Congressional Budget Act of 1974.
Fossil Energy
For an additional amount for `Fossil Energy', $2,400,000,000 for
necessary expenses to demonstrate carbon capture and sequestration
technologies as authorized under section 702 of the Energy
Independence and Security Act of 2007.
Science
For an additional amount for `Science', $2,000,000,000:
/Provided/, That of such amounts, not less than $400,000,000 shall
be used for the Advanced Research Projects Agency--Energy
authorized under section 5012 of the America COMPETES Act (42
U.S.C. 16538): /Provided further/, That of such amounts, not less
than $100,000,000 shall be used for advanced scientific computing.
ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES
Defense Environmental Cleanup
For an additional amount for `Defense Environmental Cleanup,'
$500,000,000: /Provided/, That such amounts shall be used for
elements of projects, programs, or activities that can be
completed using funds provided herein.
GENERAL PROVISIONS, THIS TITLE
SEC. 5001. WESTERN AREA POWER ADMINISTRATION BORROWING AUTHORITY.
The Hoover Power Plant Act of 1984 (Public Law 98-381) is amended
by adding at the end the following:
`TITLE III--BORROWING AUTHORITY
`SEC. 301. WESTERN AREA POWER ADMINISTRATION BORROWING AUTHORITY.
`(a) Definitions- In this section--
`(1) ADMINISTRATOR- The term `Administrator' means the
Administrator of the Western Area Power Administration.
`(2) SECRETARY- The term `Secretary' means the Secretary of
the Treasury.
`(b) Authority-
`(1) IN GENERAL- Notwithstanding any other provision of law,
subject to paragraphs (2) through (5)--
`(A) the Western Area Power Administration may borrow
funds from the Treasury; and
`(B) the Secretary shall, without further
appropriation and without fiscal year limitation, loan
to the Western Area Power Administration, on such
terms as may be fixed by the Administrator and the
Secretary, such sums (not to exceed, in the aggregate
(including deferred interest), $3,250,000,000 in
outstanding repayable balances at any 1 time) as, in
the judgment of the Administrator, are from time to
time required for the purpose of--
`(i) constructing, financing, facilitating, or
studying construction of new or upgraded
electric power transmission lines and related
facilities with at least 1 terminus within the
area served by the Western Area Power
Administration; and
`(ii) delivering or facilitating the delivery of
power generated by renewable energy resources
constructed or reasonably expected to be
constructed after the date of enactment of this
section.
`(2) INTEREST- The rate of interest to be charged in
connection with any loan made pursuant to this subsection
shall be fixed by the Secretary, taking into consideration
market yields on outstanding marketable obligations of the
United States of comparable maturities as of the date of the
loan.
`(3) REFINANCING- The Western Area Power Administration may
refinance loans taken pursuant to this section within the
Treasury.
`(4) PARTICIPATION- The Administrator may permit other
entities to participate in projects financed under this section.
`(5) CONGRESSIONAL REVIEW OF DISBURSEMENT- Effective upon
the date of enactment of this section, the Administrator
shall have the authority to have utilized $1,750,000,000 at
any one time. If the Administrator seeks to borrow funds
above $1,750,000,000, the funds will be disbursed unless
there is enacted, within 90 calendar days of the first such
request, a joint resolution that rescinds the remainder of
the balance of the borrowing authority provided in this section.
`(c) Transmission Line and Related Facility Projects-
`(1) IN GENERAL- For repayment purposes, each transmission
line and related facility project in which the Western Area
Power Administration participates pursuant to this section
shall be treated as separate and distinct from--
`(A) each other such project; and
`(B) all other Western Area Power Administration power
and transmission facilities.
`(2) PROCEEDS- The Western Area Power Administration shall
apply the proceeds from the use of the transmission capacity
from an individual project under this section to the
repayment of the principal and interest of the loan from the
Treasury attributable to that project, after reserving such
funds as the Western Area Power Administration determines
are necessary--
`(A) to pay for any ancillary services that are
provided; and
`(B) to meet the costs of operating and maintaining
the new project from which the revenues are derived.
`(3) SOURCE OF REVENUE- Revenue from the use of projects
under this section shall be the only source of revenue for--
`(A) repayment of the associated loan for the project; and
`(B) payment of expenses for ancillary services and
operation and maintenance.
`(4) LIMITATION ON AUTHORITY- Nothing in this section
confers on the Administrator any obligation to provide
ancillary services to users of transmission facilities
developed under this section.
`(d) Certification-
`(1) IN GENERAL- For each project in which the Western Area
Power Administration participates pursuant to this section,
the Administrator shall certify, prior to committing funds
for any such project, that--
`(A) the project is in the public interest;
`(B) the project will not adversely impact system
reliability or operations, or other statutory
obligations; and
`(C) it is reasonable to expect that the proceeds from
the project shall be adequate to make repayment of the
loan.
`(2) FORGIVENESS OF BALANCES-
`(A) IN GENERAL- If, at the end of the useful life of
a project, there is a remaining balance owed to the
Treasury under this section, the balance shall be
forgiven.
`(B) UNCONSTRUCTED PROJECTS- Funds expended to study
projects that are considered pursuant to this section
but that are not constructed shall be forgiven.
`(C) NOTIFICATION- The Administrator shall notify the
Secretary of such amounts as are to be forgiven under
this paragraph.
`(e) Public Processes-
`(1) POLICIES AND PRACTICES- Prior to requesting any loans
under this section, the Administrator shall use a public
process to develop practices and policies that implement the
authority granted by this section.
`(2) REQUESTS FOR INTERESTS- In the course of selecting
potential projects to be funded under this section, the
Administrator shall seek requests for interest from entities
interested in identifying potential projects through one or
more notices published in the Federal Register.'.
SEC. 5002. BONNEVILLE POWER ADMINISTRATION.
For the purposes of providing funds to assist in financing the
construction, acquisition, and replacement of the transmission
system of the Bonneville Power Administration and to implement the
authority of the Administrator under the Pacific Northwest
Electric Power Planning and Conservation Act (16 U.S.C. 839 et
seq.), an additional $3,250,000,000 in borrowing authority is made
available under the Federal Columbia River Transmission System Act
(16 U.S.C. 838 et seq.), to remain outstanding at any time.
SEC. 5003. APPROPRIATIONS TRANSFER AUTHORITY.
Not to exceed 20 percent of the amounts made available in this Act
to the Department of Energy for `Energy Efficiency and Renewable
Energy', `Electricity Delivery and Energy Reliability', and
`Advanced Battery Loan Guarantee Program' may be transferred
within and between such accounts, except that no amount specified
under any such heading may be increased or decreased by more than
a total of 20 percent by such transfers, and notification of such
transfers shall be submitted promptly to the Committees on
Appropriations of the House of Representatives and the Senate.
TITLE VI--FINANCIAL SERVICES AND GENERAL GOVERNMENT
Subtitle A--General Services
General Services Administration
federal buildings fund
limitations on availability of revenue
(including transfer of funds)
For an additional amount to be deposited in the Federal Buildings
Fund, $7,700,000,000 for real property activities with priority
given to activities that can commence promptly following enactment
of this Act; of which up to $1,000,000,000 shall be used for
construction, repair, and alteration of border facilities and land
ports of entry; of which not less than $6,000,000,000 shall be
used for construction, repair, and alteration of Federal buildings
for projects that will create the greatest impact on energy
efficiency and conservation; of which $108,000,000 shall remain
available until September 30, 2012, and shall be used for rental
of space costs associated with the construction, repair, and
alteration of these projects; /Provided/, That of the amounts
provided, $160,000,000 shall remain available until September 30,
2012, and shall be for building operations in support of the
activities described in this paragraph: /Provided further/, That
the preceding proviso shall apply to this appropriation in lieu of
the provisions of section 1106 of this Act: /Provided further/,
That the Administrator of General Services is authorized to
initiate design, construction, repair, alteration, leasing, and
other projects through existing authorities of the Administrator:
/Provided further/, That the Administrator shall submit a detailed
plan, by project, regarding the use of funds to the Committees on
Appropriations of the House of Representatives and the Senate
within 30 days after enactment of this Act, and shall provide
notification to the Committees within 15 days prior to any changes
regarding the use of these funds: /Provided further/, That the
Administrator shall report to the Committees on the obligation of
these funds on a quarterly basis beginning on June 30, 2009:
/Provided further/, That of the amounts provided, $4,000,000 shall
be transferred to and merged with `Government-Wide Policy', for
the Office of Federal High-Performance Green Buildings as
authorized in the Energy Independence and Security Act of 2007
(Public Law 110-140).
energy efficient federal motor vehicle fleet procurement
For capital expenditures and necessary expenses of the General
Services Administration's Motor Vehicle Acquisition and Motor
Vehicle Leasing programs for the acquisition of motor vehicles,
including plug-in and alternative fuel vehicles, $600,000,000:
/Provided/, That the amount set aside from this appropriation
pursuant to section 1106 of this Act shall be 1 percent instead of
the percentage specified in such section: /Provided further/, That
none of these funds may be obligated until the Administrator of
General Services submits to the Committees on Appropriations of
the House of Representatives and the Senate, within 90 days after
enactment of this Act, a plan for expenditure of the funds that
details the current inventory of the Federal fleet owned by the
General Services Administration, as well as other Federal
agencies, and the strategy to expend these funds to replace a
portion of the Federal fleet with the goal of substantially
increasing energy efficiency over the current status, including
increasing fuel efficiency and reducing emissions: /Provided
further/, That the Administrator shall report to the Committees on
the obligation of these funds on a quarterly basis beginning on
June 30, 2009.
Subtitle B--Small Business
Small Business Administration
business loans program account
(including transfers of funds)
For the cost of direct loans and loan guarantees authorized by
sections 6202 through 6205 of this Act, $426,000,000: /Provided/,
That such cost, including the cost of modifying such loans, shall
be as defined in section 502 of the Congressional Budget Act of
1974. In addition, for administrative expenses to carry out the
direct loan and loan guarantee programs authorized by this Act,
$4,000,000, which may be transferred to and merged with the
appropriations for Salaries and Expenses: /Provided/, That this
sentence shall apply to this appropriation in lieu of the
provisions of section 1106 of this Act.
GENERAL PROVISIONS, THIS SUBTITLE
SEC. 6201. ECONOMIC STIMULUS LENDING PROGRAM FOR SMALL BUSINESSES.
(a) Purpose- The purpose of this section is to permit the Small
Business Administration to guarantee up to 95 percent of
qualifying small business loans made by eligible lenders.
(b) Definitions- For purposes of this section:
(1) The term `Administrator' means the Administrator of the
Small Business Administration.
(2) The term `qualifying small business loan' means any loan
to a small business concern that would be eligible for a
loan guarantee under section 7(a) of the Small Business Act
(15 U.S.C. 636) or title V of the Small Business Investment
Act of 1958 (15 U.S.C. 695 and following).
(3) The term `small business concern' has the same meaning
as provided by section 3 of the Small Business Act (15
U.S.C. 632).
(c) Application- In order to participate in the loan guarantee
program under this section a lender shall submit an application to
the Administrator for the guarantee of up to 95 percent of the
principal amount of a qualifying small business loan. The
Administrator shall approve or deny each such application within 5
business days after receipt thereof. The Administrator may not
delegate to lenders the authority to approve or disapprove such
applications.
(d) Fees- The Administrator may charge fees for guarantees issued
under this section. Such fees shall not exceed the fees permitted
for loan guarantees under section 7(a) of the Small Business Act
(15 U.S.C. 631 and following).
(e) Interest Rates- The Administrator may not guarantee under this
section any loan that bears interest at a rate higher than 3
percent above the higher of either of the following as quoted in
the Wall Street Journal on the first business day of the week in
which such guarantee is issued:
(1) The London interbank offered rate (LIBOR) for a 3-month
period.
(2) The Prime Rate.
(f) Qualified Borrowers-
(1) ALIENS UNLAWFULLY PRESENT IN THE UNITED STATES- A loan
guarantee may not be made under this section for a loan made
to a concern if an individual who is an alien unlawfully
present in the United States--
(A) has an ownership interest in that concern; or
(B) has an ownership interest in another concern that
itself has an ownership interest in that concern.
(2) FIRMS IN VIOLATION OF IMMIGRATION LAWS- No loan
guarantee may be made under this section for a loan to any
entity found, based on a determination by the Secretary of
Homeland Security or the Attorney General to have engaged in
a pattern or practice of hiring, recruiting or referring for
a fee, for employment in the United States an alien knowing
the person is an unauthorized alien.
(g) Criminal Background Checks- Prior to the approval of any loan
guarantee under this section, the Administrator may verify the
applicant's criminal background, or lack thereof, through the best
available means, including, if possible, use of the National Crime
Information Center computer system at the Federal Bureau of
Investigation.
(h) Application of Other Law- Nothing in this section shall be
construed to exempt any activity of the Administrator under this
section from the Federal Credit Reform Act of 1990 (title V of the
Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C.
661 and following).
(i) Sunset- Loan guarantees may not be issued under this section
after the date 90 days after the date of establishment (as
determined by the Administrator) of the economic recovery program
under section 6204.
(j) Small Business Act Provisions- The provisions of the Small
Business Act applicable to loan guarantees under section 7 of that
Act shall apply to loan guarantees under this section except as
otherwise provided in this section.
(k) Authorization- There are authorized to be appropriated such
sums as may be necessary to carry out this section.
SEC. 6202. ESTABLISHMENT OF SBA SECONDARY MARKET LENDING AUTHORITY.
(a) Purpose- The purpose of this section is to provide the Small
Business Administration with the authority to establish a
Secondary Market Lending Authority within the SBA to make loans to
the systemically important SBA secondary market broker-dealers who
operate the SBA secondary market.
(b) Definitions- For purposes of this section:
(1) The term `Administrator' means the Administrator of the SBA.
(2) The term `SBA' means the Small Business Administration.
(3) The terms `Secondary Market Lending Authority' and
`Authority' mean the office established under subsection (c).
(4) The term `SBA secondary market' means the market for the
purchase and sale of loans originated, underwritten, and
closed under the Small Business Act.
(5) The term `Systemically Important Secondary Market
Broker-Dealers' mean those entities designated under
subsection (c)(1) as vital to the continued operation of the
SBA secondary market by reason of their purchase and sale of
the government guaranteed portion of loans, or pools of
loans, originated, underwritten, and closed under the Small
Business Act.
(c) Responsibilities, Authorities, Organization, and Limitations-
(1) DESIGNATION OF SYSTEMICALLY IMPORTANT SBA SECONDARY
MARKET BROKER-DEALERS- The Administrator shall establish a
process to designate, in consultation with the Board of
Governors of the Federal Reserve and the Secretary of the
Treasury, Systemically Important Secondary Market
Broker-Dealers.
(2) ESTABLISHMENT OF SBA SECONDARY MARKET LENDING AUTHORITY-
(A) ORGANIZATION-
(i) The Administrator shall establish within the
SBA an office to provide loans to Systemically
Important Secondary Market Broker-dealers to be
used for the purpose of financing the inventory
of the government guaranteed portion of loans,
originated, underwritten, and closed under the
Small Business Act or pools of such loans.
(ii) The Administrator shall appoint a Director
of the Authority who shall report to the
Administrator.
(iii) The Administrator is authorized to hire
such personnel as are necessary to operate the
Authority.
(iv) The Administrator may contract such
Authority operations as he determines necessary
to qualified third-party companies or individuals.
(v) The Administrator is authorized to contract
with private sector fiduciary and custodial
agents as necessary to operate the Authority.
(B) LOANS-
(i) The Administrator shall establish by rule a
process under which Systemically Important SBA
Secondary Market Broker-Dealers designated under
paragraph (1) may apply to the Administrator for
loans under this section.
(ii) The rule under clause (i) shall provide a
process for the Administrator to consider and
make decisions regarding whether or not to
extend a loan applied for under this section.
Such rule shall include provisions to assure
each of the following:
(I) That loans made under this section are
for the sole purpose of financing the
inventory of the government guaranteed
portion of loans, originated,
underwritten, and closed under the Small
Business Act or pools of such loans.
(II) That loans made under this section
are fully collateralized to the
satisfaction of the Administrator.
(III) That there is no limit to the
frequency in which a borrower may borrow
under this section unless the
Administrator determines that doing so
would create an undue risk of loss to the
agency or the United States.
(IV) That there is no limit on the size of
a loan, subject to the discretion of the
Administrator.
(iii) Interest on loans under this section shall
not exceed the Federal Funds target rate as
established by the Federal Reserve Board of
Governors plus 25 basis points.
(iv) The rule under this section shall provide
for such loan documents, legal covenants,
collateral requirements and other required
documentation as necessary to protect the
interests of the agency, the United States, and
the taxpayer.
(v) The Administrator shall establish custodial
accounts to safeguard any collateral pledged to
the SBA in connection with a loan under this
section.
(vi) The Administrator shall establish a process
to disburse and receive funds to and from
borrowers under this section.
(C) LIMITATIONS ON USE OF LOAN PROCEEDS BY
SYSTEMICALLY IMPORTANT SECONDARY MARKET
BROKER-DEALERS- The Administrator shall ensure that
borrowers under this section are using funds provided
under this section only for the purpose specified in
subparagraph (B)(ii)(I). If the Administrator finds
that such funds were used for any other purpose, the
Administrator shall--
(i) require immediate repayment of outstanding
loans;
(ii) prohibit the borrower, its affiliates, or
any future corporate manifestation of the
borrower from using the Authority; and
(iii) take any other actions the Administrator,
in consultation with the Attorney General of the
United States, deems appropriate.
(d) Report to Congress- The Administrator shall submit a report to
Congress not later than the third business day of each month
containing a statement of each of the following:
(1) The aggregate loan amounts extended during the preceding
month under this section.
(2) The aggregate loan amounts repaid under this section
during the proceeding month.
(3) The aggregate loan amount outstanding under this section.
(4) The aggregate value of assets held as collateral under
this section.
(5) The amount of any defaults or delinquencies on loans
made under this section.
(6) The identity of any borrower found by the Administrator
to misuse funds made available under this section.
(7) Any other information the Administrator deems necessary
to fully inform Congress of undue risk of financial loss to
the United States in connection with loans made under this
section.
(e) Duration- The authority of this section shall remain in effect
for a period of 2 years after the date of enactment of this section.
(f) Funding- Such sums as necessary are authorized to be
appropriated to carry out the provisions of this section.
(g) Budget Treatment- Nothing in this section shall be construed
to exempt any activity of the Administrator under this section
from the Federal Credit Reform Act of 1990 (title V of the
Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C.
661 and following).
(h) Emergency Rulemaking Authority- The Administrator shall
promulgate regulations under this section within 15 days after the
date of enactment of enactment of this section. In promulgating
these regulations, the Administrator the notice requirements of
section 553(b) of title 5 of the United States Code shall not apply.
SEC. 6203. ESTABLISHMENT OF SBA SECONDARY MARKET GUARANTEE AUTHORITY.
(a) Purpose- The purpose of this section is to provide the
Administrator with the authority to establish the SBA Secondary
Market Guarantee Authority within the SBA to provide a Federal
guarantee for pools of first lien 504 loans that are to be sold to
third-party investors.
(b) Definitions- For purposes of this section:
(1) The term `Administrator' means the Administrator of the
Small Business Administration.
(2) The term `first lien position 504 loan' means the first
mortgage position, non-federally guaranteed loans made by
private sector lenders made under title V of the Small
Business Investment Act.
(c) Establishment of Authority-
(1) ORGANIZATION-
(A) The Administrator shall establish a Secondary
Market Guarantee Authority within the Small Business
Administration.
(B) The Administrator shall appoint a Director of the
Authority who shall report to the Administrator.
(C) The Administrator is authorized to hire such
personnel as are necessary to operate the Authority
and may contract such operations of the Authority as
necessary to qualified third-party companies or
individuals.
(D) The Administrator is authorized to contract with
private sector fiduciary and custodial agents as
necessary to operate the Authority.
(2) GUARANTEE PROCESS-
(A) The Administrator shall establish, by rule, a
process in which private sector entities may apply to
the Administration for a Federal guarantee on pools of
first lien position 504 loans that are to be sold to
third-party investors.
(B) The Administrator shall appoint a Director of the
Authority who shall report to the Administrator.
(C) The Administrator is authorized to hire such
personnel as are necessary to operate the Authority
and may contract such operations of the Authority as
necessary to qualified third-party companies or
individuals.
(D) The Administrator is authorized to contract with
private sector fiduciary and custodial agents as
necessary to operate the Authority.
(3) RESPONSIBILITIES-
(A) The Administrator shall establish, by rule, a
process in which private sector entities may apply to
the SBA for a Federal guarantee on pools of first lien
position 504 loans that are to be sold to third-party
investors.
(B) The rule under this section shall provide for a
process for the Administrator to consider and make
decisions regarding whether to extend a Federal
guarantee referred to in clause (i). Such rule shall
also provide that:
(i) The seller of the pools purchasing a
guarantee under this section retains not less
than 5 percent of the dollar amount of the pools
to be sold to third-party investors.
(ii) The seller of such pools shall absorb any
and all losses resulting from a shortage or
excess of monthly cash flows.
(iii) The Administrator shall receive a monthly
fee of not more than 50 basis points on the
outstanding balance of the dollar amount of the
pools that are guaranteed.
(iv) The Administrator may guarantee not more
than $3,000,000,0000 of pools under this authority.
(C) The Administrator shall establish documents, legal
covenants, and other required documentation to protect
the interests of the United States.
(D) The Administrator shall establish a process to
receive and disburse funds to entities under the
authority established in this section.
(d) Limitations-
(1) The Administrator shall ensure that entities purchasing
a guarantee under this section are using such guarantee for
the purpose of selling 504 first lien position pools to
third-party investors.
(2) If the Administrator finds that any such guarantee was
used for a purpose other than that specified in paragraph
(1), the Administrator shall--
(A) terminate such guarantee immediately,
(B) prohibit the purchaser of the guarantee or its
affiliates (within the meaning of the regulations
under 13 CFR 121.103) from using the authority of this
section in the future; and
(C) take any other actions the Administrator, in
consultation with the Attorney General of the United
States deems appropriate.
(e) Oversight- The Administrator shall submit a report to Congress
not later than the third business day of each month setting forth
each of the following:
(1) The aggregate amount of guarantees extended under this
section during the proceeding month.
(2) The aggregate amount of guarantees outstanding.
(3) Defaults and payments on defaults made under this section.
(4) The identity of each purchaser of a guarantee found by
the Administrator to have misused guarantees under this section.
(5) Any other information the Administrator deems necessary
to fully inform Congress of undue risk to the United States
associated with the issuance of guarantees under this section.
(f) Duration of Program- The authority of this section shall
terminate on the date 2 years after the date of enactment of this
section.
(g) Funding- Such sums as necessary are authorized to be
appropriated to carry out the provisions of this section.
(h) Budget Treatment- Nothing in this section shall be construed
to exempt any activity of the Administrator under this section
from the Federal Credit Reform Act of 1990 (title V of the
Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C.
661 and following).
(i) Emergency Rulemaking Authority- The Administrator shall issue
regulations under this section within 15 days after the date of
enactment of this section. The notice requirements of section
553(b) of Title 5, United States Code shall not apply to the
promulgation of such regulations.
SEC. 6204. ECONOMIC RECOVERY PROGRAM.
(a) Purpose- The purpose of this section is to establish a new
lending and refinancing authority within the Small Business
Administration.
(b) Definitions- For purposes of this section:
(1) The term `Administrator' means the Administrator of the
Small Business Administration.
(2) The term `small business concern' has the same meaning
as provided by section 3 of the Small Business Act (15
U.S.C. 632).
(c) Refinancing Authority-
(1) IN GENERAL- Upon application from a lender (and with
consent of the borrower), the Administrator may refinance
existing non-Small Business Administration or Small Business
Administration loans (including loans under sections 7(a)
and 504 of the Small Business Act) made to small business
concerns.
(2) ELIGIBLE LOANS- In order to be eligible for refinancing
under this section--
(A) the amount of the loan refinanced may not exceed
$10,000,000 and a first lien must be conveyed to the
Administrator;
(B) the lender shall offer to accept from the
Administrator as full repayment of the loan an amount
equal to less than 100 percent but more than 85
percent of the remaining balance of the principal of
the loan; and
(C) the loan to be refinanced was made before the date
of enactment of this Act and for a purpose that would
have been eligible for a loan under any Small Business
Administration lending program.
(3) TERMS- The term of the refinancing by the Administrator
under this section shall not be less than remaining term on
the loan that is refinanced but shall not exceed a term of
20 years. The rate of interest on the loan refinanced under
this section shall be fixed by the Administrator at a level
that the Administrator determines will result in manageable
monthly payments for the borrower.
(4) LIMIT- The Administrator may not refinance amounts under
this section that are greater than the amount the lender
agrees to accept from the Administrator as full repayment of
the loan as provided in paragraph (2)(B).
(d) Underwriting and Other Loan Services-
(1) IN GENERAL- The Administrator is authorized to engage in
underwriting, loan closing, funding, and servicing of loans
made to small business concerns and to guarantee loans made
by other entities to small business concerns.
(2) APPLICATION PROCESS- The Administrator shall by rule
establish a process in which small business concerns may
submit applications to the Administrator for the purposes of
securing a loan under this subsection. The Administrator
shall, at a minimum, collect all information necessary to
determine the creditworthiness and repayment ability of the
borrower.
(3) PARTICIPATION OF LENDERS-
(A) The Administrator shall by rule establish a
process in which the Administrator makes available
loan applications and all accompanying information to
lenders for the purpose of such lenders originating,
underwriting, closing, and servicing such loans.
(B) Lenders are eligible to receive loan applications
and accompanying information under this paragraph if
they participate in the programs established in
section 7(a) of the Small Business Act (15 U.S.C. 636)
or title V of the Small Business Investment Act (15
U.S.C. 695).
(C) The Administrator shall first make available such
loan applications and accompanying information to
lenders within 100 miles of a loan applicant's
principal office.
(D) If a lender described in subparagraph (C) does not
agree to originate, underwrite, close, and service
such loans within 5 business days of receiving the
loan applications, the Administrator shall
subsequently make available such loan applications and
accompanying information to lenders in the Preferred
Lenders Program under section 7(a)(2)(C)(ii) of the
Small Business Act (15 U.S.C. 636).
(E) If a lender described in subparagraph (C) or (D)
does not agree to originate, underwrite, close, and
service such loans within 10 business days of
receiving the loan applications, the Administrator may
originate, underwrite, close, and service such loans
as described in paragraph (1) of this subsection.
(4) ASSET SALES- The Administrator shall offer to sell loans
made or refinanced by the Administrator under this section.
Such sales shall be made through semi-annual public
solicitation (in the Federal Register and in other media) of
offers to purchase. The Administrator may contract with
vendors for due diligence, asset valuation, and other
services related to such sales. The Administrator may not
sell any loan under this section for less than 90 percent of
the net present value of the loan, as determined and
certified by a qualified third-party.
(5) LOANS NOT SOLD- The Administrator shall maintain and
service loans made by the Administrator under this section
that are not sold through the asset sales under this section.
(e) Duration- The authority of this section shall terminate on the
date two years after the date on which the program under this
section becomes operational (as determined by the Administrator).
(f) Application of Other Law- Nothing in this section shall be
construed to exempt any activity of the Administrator under this
section from the Federal Credit Reform Act of 1990 (title V of the
Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C.
661 and following).
(g) Qualified Loans-
(1) ALIENS UNLAWFULLY PRESENT IN THE UNITED STATES- A loan
to any concern shall not be subject to this section if an
individual who is an alien unlawfully present in the United
States--
(A) has an ownership interest in that concern; or
(B) has an ownership interest in another concern that
itself has an ownership interest in that concern.
(2) FIRMS IN VIOLATION OF IMMIGRATION LAWS- No loan shall be
subject to this section if the borrower is an entity found,
based on a determination by the Secretary of Homeland
Security or the Attorney General to have engaged in a
pattern or practice of hiring, recruiting or referring for a
fee, for employment in the United States an alien knowing
the person is an unauthorized alien.
(h) Reports- The Administrator shall submit a report to Congress
semi-annually setting forth the aggregate amount of loans and
geographic dispersion of such loans made, underwritten, closed,
funded, serviced, sold, guaranteed, or held by the Administrator
under the authority of this section. Such report shall also set
forth information concerning loan defaults, prepayments, and
recoveries related to loans ,made under the authority of this section.
(i) Authorization- There are authorized to be appropriated such
sums as may be necessary to carry out this section.
SEC. 6205. STIMULUS FOR COMMUNITY DEVELOPMENT LENDING.
(a) Refinancing Under the Local Development Business Loan Program-
Section 502 of the Small Business Investment Act of 1958 (15
U.S.C. 696) is amended by adding at the end the following:
`(7) PERMISSIBLE DEBT REFINANCING-
`(A) IN GENERAL- Any financing approved under this
title may include a limited amount of debt refinancing.
`(B) EXPANSIONS- If the project involves expansion of
a small business concern which has existing
indebtedness collateralized by fixed assets, any
amount of existing indebtedness that does not exceed
1/2 of the project cost of the expansion may be
refinanced and added to the expansion cost, if--
`(i) the proceeds of the indebtedness were used
to acquire land, including a building situated
thereon, to construct a building thereon, or to
purchase equipment;
`(ii) the borrower has been current on all
payments due on the existing debt for not less
than 1 year preceding the date of refinancing; and
`(iii) the financing under section 504 will
provide better terms or rate of interest than
exists on the debt at the time of refinancing.'.
(b) Job Creation Goals- Section 501(e)(1) and section 501(e)(2) of
the Small Business Investment Act (15 U.S.C. 695) are each amended
by striking `$50,000' and inserting `$65,000'.
SEC. 6206. INCREASING SMALL BUSINESS INVESTMENT.
(a) Simplified Maximum Leverage Limits- Section 303(b) of the
Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended--
(1) by striking so much of paragraph (2) as precedes
subparagraphs (C) and (D) and inserting the following:
`(2) MAXIMUM LEVERAGE-
`(A) IN GENERAL- The maximum amount of outstanding
leverage made available to any one company licensed
under section 301(c) of this Act may not exceed the
lesser of--
`(i) 300 percent of such company's private
capital; or
`(ii) $150,000,000.
`(B) MULTIPLE LICENSES UNDER COMMON CONTROL- The
maximum amount of outstanding leverage made available
to two or more companies licensed under section 301(c)
of this Act that are commonly controlled (as
determined by the Administrator) and not under capital
impairment may not exceed $225,000,000.'; and
(2) by striking paragraph (4).
(b) Simplified Aggregate Investment Limitations- Section 306(a) of
the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is
amended to read as follows:
`(a) Percentage Limitation on Private Capital- If any small
business investment company has obtained financing from the
Administrator and such financing remains outstanding, the
aggregate amount of securities acquired and for which commitments
may be issued by such company under the provisions of this title
for any single enterprise shall not, without the approval of the
Administrator, exceed 10 percent of the sum of--
`(1) the private capital of such company; and
`(2) the total amount of leverage projected by the company
in the company's business plan that was approved by the
Administrator at the time of the grant of the company's
license.'.
SEC. 6207. GAO REPORT.
(a) Report- Not later than 30 days after the enactment of this
Act, the Comptroller General of the United States shall report to
the Congress on the actions of the Administrator in implementing
the authority established in sections 6201 through 6206 of this Act.
(b) Included Item- The report under this section shall include a
summary of the activity of the Administrator under this section
and an analysis of whether he is accomplishing the purpose of
increasing liquidity in the secondary market for Small Business
Administration loans.
TITLE VII--HOMELAND SECURITY
DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
salaries and expenses
For an additional amount for `Salaries and Expenses',
$100,000,000, for non-intrusive detection technology to be
deployed at sea ports of entry.
construction
For an additional amount for `Construction', $150,000,000, to
repair and construct inspection facilities at land border ports of
entry.
Transportation Security Administration
aviation security
For an additional amount for `Aviation Security', $500,000,000,
for the purchase and installation of explosive detection systems
and emerging checkpoint technologies: /Provided/, That the
Assistant Secretary of Homeland Security (Transportation Security
Administration) shall prioritize the award of these funds to
accelerate the installations at locations with completed design
plans and to expeditiously award new letters of intent.
Coast Guard
alteration of bridges
For an additional amount for `Alteration of Bridges',
$150,000,000, for alteration or removal of obstructive bridges, as
authorized by section 6 of the Truman-Hobbs Act (33 U.S.C. 516):
/Provided/, That the Coast Guard shall award these funds to those
bridges that are ready to proceed to construction.
Federal Emergency Management Agency
emergency food and shelter
For an additional amount for `Emergency Food and Shelter',
$200,000,000, to carry out the emergency food and shelter program
pursuant to title III of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11331 et seq.): /Provided/, That for the purposes
of this appropriation, the redistribution required by section
1104(b) shall be carried out by the Federal Emergency Management
Agency and the National Board, who may reallocate and obligate any
funds that are unclaimed or returned to the program: /Provided
further/, That the amount set aside from this appropriation
pursuant to section 1106 of this Act shall be 3.5 percent instead
of the percentage specified in such section.
GENERAL PROVISIONS, THIS TITLE
SEC. 7001. EXTENSION OF PROGRAMS.
Section 401(b) of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended by
striking `11-year period' and inserting `16-year period'.
SEC. 7002. PROTECTION OF SOCIAL SECURITY ADMINISTRATION PROGRAMS.
(a) Funding Under Agreement- Effective for fiscal years beginning
on or after October 1, 2008, the Commissioner of Social Security
and the Secretary of Homeland Security shall enter into and
maintain an agreement which shall--
(1) provide funds to the Commissioner for the full costs of
the responsibilities of the Commissioner under section 404
of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1324a note), including
(but not limited to)--
(A) acquiring, installing, and maintaining
technological equipment and systems necessary for the
fulfillment of the responsibilities of the
Commissioner under such section 404, but only that
portion of such costs that are attributable
exclusively to such responsibilities; and
(B) responding to individuals who contest a tentative
nonconfirmation provided by the basic pilot
confirmation system established under such section;
(2) provide such funds quarterly in advance of the
applicable quarter based on estimating methodology agreed to
by the Commissioner and the Secretary (except in such
instances where the delayed enactment of an annual
appropriation may preclude such quarterly payments); and
(3) require an annual accounting and reconciliation of the
actual costs incurred and the funds provided under the
agreement, which shall be reviewed by the Office of
Inspector General of the Social Security Administration and
the Department of Homeland Security.
(b) Continuation of Employment Verification in Absence of Timely
Agreement- In any case in which the agreement required under
subsection (a) for any fiscal year beginning on or after October
1, 2008, has not been reached as of October 1 of such fiscal year,
the latest agreement between the Commissioner and the Secretary of
Homeland Security providing for funding to cover the costs of the
responsibilities of the Commissioner under section 404 of the
Illegal Immigration Reform and Immigrant Responsibility Act of
1996 (8 U.S.C. 1324a note) shall be deemed in effect on an interim
basis for such fiscal year until such time as an agreement
required under subsection (a) is subsequently reached, except that
the terms of such interim agreement shall be modified by the
Director of the Office of Management and Budget to adjust for
inflation and any increase or decrease in the volume of requests
under the basic pilot confirmation system. In any case in which an
interim agreement applies for any fiscal year under this
subsection, the Commissioner and the Secretary shall, not later
than October 1 of such fiscal year, notify the Committee on Ways
and Means, the Committee on the Judiciary, and the Committee on
Appropriations of the House of Representatives and the Committee
on Finance, the Committee on the Judiciary, and the Committee on
Appropriations of the Senate of the failure to reach the agreement
required under subsection (a) for such fiscal year. Until such
time as the agreement required under subsection (a) has been
reached for such fiscal year, the Commissioner and the Secretary
shall, not later than the end of each 90-day period after October
1 of such fiscal year, notify such Committees of the status of
negotiations between the Commissioner and the Secretary in order
to reach such an agreement.
SEC. 7003. GAO STUDY OF BASIC PILOT CONFIRMATION SYSTEM.
(a) In General- As soon as practicable after the date of the
enactment of this Act, the Comptroller General of the United
States shall conduct a study regarding erroneous tentative
nonconfirmations under the basic pilot confirmation system
established under section 404(a) of the Illegal Immigration Reform
and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note).
(b) Matters To Be Studied- In the study required under subsection
(a), the Comptroller General shall determine and analyze--
(1) the causes of erroneous tentative nonconfirmations under
the basic pilot confirmation system;
(2) the processes by which such erroneous tentative
nonconfirmations are remedied; and
(3) the effect of such erroneous tentative nonconfirmations
on individuals, employers, and Federal agencies.
(c) Report- Not later than 2 years after the date of the enactment
of this Act, the Comptroller General shall submit the results of
the study required under subsection (a) to the Committee on Ways
and Means and the Committee on the Judiciary of the House of
Representatives and the Committee on Finance and the Committee on
the Judiciary of the Senate.
SEC. 7004. GAO STUDY OF EFFECTS OF BASIC PILOT PROGRAM ON SMALL
ENTITIES.
(a) In General- Not later than 2 years after the date of the
enactment of this Act, the Comptroller General of the United
States shall submit to the Committees on the Judiciary of the
United States House of Representatives and the Senate a report
containing the Comptroller General's analysis of the effects of
the basic pilot program described in section 403(a) of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996 (8
U.S.C. 1324a note) on small entities (as defined in section 601 of
title 5, United States Code). The report shall detail--
(1) the costs of compliance with such program on small entities;
(2) a description and an estimate of the number of small
entities enrolled and participating in such program or an
explanation of why no such estimate is available;
(3) the projected reporting, recordkeeping and other
compliance requirements of such program on small entities;
(4) factors that impact small entities' enrollment and
participation in such program, including access to
appropriate technology, geography, entity size, and class of
entity; and
(5) the steps, if any, the Secretary of Homeland Security
has taken to minimize the economic impact of participating
in such program on small entities.
(b) Direct and Indirect Effects- The report shall cover, and treat
separately, direct effects (such as wages, time, and fees spent on
compliance) and indirect effects (such as the effect on cash flow,
sales, and competitiveness).
(c) Specific Contents- The report shall provide specific and
separate details with respect to--
(1) small businesses (as defined in section 601 of title 5,
United States Code) with fewer than 50 employees; and
(2) small entities operating in States that have mandated
use of the basic pilot program.
SEC. 7005. WAIVER OF MATCHING REQUIREMENT UNDER SAFER PROGRAM.
Subparagraph (E) of section 34(a)(1) of the Federal Fire
Prevention and Control Act of 1974 (15 U.S.C. 2229a(a)(1)(E))
shall not apply with respect to funds appropriated in this or any
other Act making appropriations for fiscal year 2009 or 2010 for
grants under such section 34.
SEC. 7006. PROCUREMENT FOR DEPARTMENT OF HOMELAND SECURITY.
(a) Requirement- Except as provided in subsections (c) through
(e), funds appropriated or otherwise available to the Department
of Homeland Security may not be used for the procurement of an
item described in subsection (b) if the item is not grown,
reprocessed, reused, or produced in the United States.
(b) Covered Items- An item referred to in subsection (a) is any of
the following, if the item is directly related to the national
security interests of the United States:
(1) An article or item of--
(A) clothing and the materials and components thereof,
other than sensors, electronics, or other items added
to, and not normally associated with, clothing (and
the materials and components thereof);
(B) tents, tarpaulins, or covers;
(C) cotton and other natural fiber products, woven
silk or woven silk blends, spun silk yarn for
cartridge cloth, synthetic fabric or coated synthetic
fabric (including all textile fibers and yarns that
are for use in such fabrics), canvas products, or wool
(whether in the form of fiber or yarn or contained in
fabrics, materials, or manufactured articles); or
(D) any item of individual equipment manufactured from
or containing such fibers, yarns, fabrics, or materials.
(c) Availability Exception- Subsection (a) does not apply to the
extent that the Secretary of Homeland Security determines that
satisfactory quality and sufficient quantity of any such article
or item described in subsection (b)(1) grown, reprocessed, reused,
or produced in the United States cannot be procured as and when
needed.
(d) Exception for Certain Procurements Outside the United States-
Subsection (a) does not apply to the following:
(1) Procurements by vessels in foreign waters.
(2) Emergency procurements.
(e) Exception for Small Purchases- Subsection (a) does not apply
to purchases for amounts not greater than the simplified
acquisition threshold referred to in section 2304(g) of title 10,
United States Code.
(f) Applicability to Contracts and Subcontracts for Procurement of
Commercial Items- This section is applicable to contracts and
subcontracts for the procurement of commercial items
notwithstanding section 34 of the Office of Federal Procurement
Policy Act (41 U.S.C. 430).
(g) Geographic Coverage- In this section, the term `United States'
includes the possessions of the United States.
(h) Notification Required Within 7 Days After Contract Award if
Certain Exceptions Applied- In the case of any contract for the
procurement of an item described in subsection (b)(1), if the
Secretary of Homeland Security applies an exception set forth in
subsection (c) with respect to that contract, the Secretary shall,
not later than 7 days after the award of the contract, post a
notification that the exception has been applied on the Internet
site maintained by the General Services Administration know as
FedBizOps.gov (or any successor site).
(i) Training During Fiscal Year 2008-
(1) IN GENERAL- The Secretary of Homeland Security shall
ensure that each member of the acquisition workforce in the
Department of Homeland Security who participates personally
and substantially in the acquisition of textiles on a
regular basis receives training during fiscal year 2009 on
the requirements of this section and the regulations
implementing this section.
(2) INCLUSION OF INFORMATION IN NEW TRAINING PROGRAMS- The
Secretary shall ensure that any training program for the
acquisition work force developed or implemented after the
date of the enactment of this Act includes comprehensive
information on the requirements described in paragraph (1).
(j) Consistency With International Agreements-
(1) IN GENERAL- No provision of this section shall apply to
the extent the Secretary of Homeland Security, in
consultation with the United States Trade Representative,
determines that it is in inconsistent with United States
obligations under an international agreement.
(2) REPORT- The Secretary of Homeland Security shall submit
a report each year to Congress containing, with respect to
the year covered by the report--
(A) a list of each provision of this section that did
not apply during that year pursuant to a determination
by the Secretary under paragraph (1); and
(B) a list of each contract awarded by the Department
of Homeland Security during that year without regard
to a provision in this section because that provision
was made inapplicable pursuant to such a determination.
(k) Effective Date- This section applies with respect to contracts
entered into by the Department of Homeland Security after the date
of the enactment of this Act.
TITLE VIII--INTERIOR AND ENVIRONMENT
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
construction
(including transfers of funds)
For an additional amount for `Construction', $325,000,000, for
priority road, bridge, and trail repair or decommissioning,
critical deferred maintenance projects, facilities construction
and renovation, hazardous fuels reduction, and remediation of
abandoned mine or well sites: /Provided/, That funds may be
transferred to other appropriate accounts of the Bureau of Land
management: /Provided further/, That the amount set aside from
this appropriation pursuant to section 1106 of this Act shall be
not more than 5 percent instead of the percentage specified in
such section.
United States Fish and Wildlife Service
construction
(including transfer of funds)
For an additional amount for `Construction', $300,000,000, for
priority road and bridge repair and replacement, and critical
deferred maintenance and improvement projects on National Wildlife
Refuges, National Fish Hatcheries, and other Service properties:
/Provided/, That funds may be transferred to `Resource
Management': /Provided further/, That the amount set aside from
this appropriation pursuant to section 1106 of this Act shall be
not more than 5 percent instead of the percentage specified in
such section.
National Park Service
construction
(including transfer of funds)
For an additional amount for `Construction', $1,700,000,000, for
projects to address critical deferred maintenance needs within the
National Park System, including roads, bridges and trails, and for
other critical infrastructure projects: /Provided/, That funds may
be transferred to `Operation of the National Park System':
/Provided further/, That $200,000,000 of these funds shall be for
projects related to the preservation and repair of historical and
cultural resources within the National Park System: /Provided
further/, That $15,000,000 of these funds shall be transferred to
the `Historic Preservation Fund' for historic preservation
projects at historically black colleges and universities as
authorized by the Historic Preservation Fund Act of 1996 and the
Omnibus Parks and Public Lands Act of 1996, except that any
matching requirements otherwise required for such projects are
waived: /Provided further/, That the amount set aside from this
appropriation pursuant to section 1106 of this Act shall be not
more than 5 percent instead of the percentage specified in such
section.
centennial challenge
To carry out provisions of section 814(g) of Public Law 104-333
relating to challenge cost share agreements, $100,000,000, for
National Park Service Centennial Challenge signature projects and
programs: /Provided/, That not less than 50 percent of the total
cost of each project or program is derived from non-Federal
sources in the form of donated cash, assets, in-kind services, or
a pledge of donation guaranteed by an irrevocable letter of
credit: /Provided further/, That the amount set aside from this
appropriation pursuant to section 1106 of this Act shall be not
more than 5 percent instead of the percentage specified in such
section.
United States Geological Survey
surveys, investigations, and research
For an additional amount for `Surveys, Investigations, and
Research', $200,000,000, for repair and restoration of facilities;
equipment replacement and upgrades including stream gages, and
seismic and volcano monitoring systems; national map activities;
and other critical deferred maintenance and improvement projects:
/Provided/, That the amount set aside from this appropriation
pursuant to section 1106 of this Act shall be not more than 5
percent instead of the percentage specified in such section.
Bureau of Indian Affairs
construction
(including transfer of funds)
For an additional amount for `Construction', $500,000,000, for
priority repair and replacement of schools, detention centers,
roads, bridges, employee housing, and critical deferred
maintenance projects: /Provided/, That not less than $250,000,000
shall be used for new and replacement schools and detention
centers: /Provided further/, That funds may be transferred to
`Operation of Indian Programs': /Provided further/, That the
amount set aside from this appropriation pursuant to section 1106
of this Act shall be not more than 5 percent instead of the
percentage specified in such section.
ENVIRONMENTAL PROTECTION AGENCY
Hazardous Substance Superfund
For an additional amount for `Hazardous Substance Superfund',
$800,000,000, which shall be used for the Superfund Remedial
program: /Provided/, That amounts available by law from this
appropriation for management and administration shall take the
place of the set-aside under section 1106 of this Act.
Leaking Underground Storage Tank Trust Fund Program
For an additional amount for `Leaking Underground Storage Tank
Trust Fund Program', to carry out leaking underground storage tank
cleanup activities authorized by subtitle I of the Solid Waste
Disposal Act, $200,000,000, which shall be used to carry out
leaking underground storage tank cleanup activities authorized by
section 9003(h) of the Solid Waste Disposal Act, except that such
funds shall not be subject to the State matching requirements in
section 9003(h)(7)(B): / Provided/, That amounts available by law
from this appropriation for management and administration shall
take the place of the set-aside under section 1106 of this Act.
State and Tribal Assistance Grants
For an additional amount for `State and Tribal Assistance Grants',
$8,400,000,000, which shall be used as follows:
(1) $6,000,000,000 shall be for capitalization grants for
the Clean Water State Revolving Funds under title VI of the
Federal Water Pollution Control Act (33 U.S.C. 1381 et
seq.), except that such funds shall not be subject to the
State matching requirements in paragraphs (2) and (3) of
section 602(b) of such Act or to the Federal cost share
limitations in section 202 of such Act: /Provided/, That the
amount set aside from this appropriation pursuant to section
1106 of this Act shall be not more than 2 percent instead of
the percentage specified in such section: /Provided
further/, That, notwithstanding the limitation on amounts
specified in section 518(c) of the Federal Water Pollution
Control Act, up to a total of 1.5 percent of such funds may
be reserved by the Administrator of the Environmental
Protection Agency for grants under section 518(c) of such
Act: /Provided further/, That the requirements of section
513 of such Act shall apply to the construction of treatment
works carried out in whole or in part with assistance made
available under this heading by a Clean Water State
Revolving Fund under title VI of such Act, or with
assistance made available under section 205(m) of such Act,
or both: /Provided further/, That, notwithstanding the
requirements of section 603(d) of such Act, each State shall
use 50 percent of the amount of the capitalization grant
received by the State under title VI of such Act to provide
assistance, in the form of additional subsidization,
including forgiveness of principal, negative interest loans,
and grants, to municipalities (as defined in section 502 of
such Act) for projects that are included on the State's
priority list established under section 603(g) of such Act,
of which 80 percent shall be for projects to benefit
municipalities that meet affordability criteria as
determined by the Governor of the State and 20 percent shall
be for projects to address water-efficiency goals, address
energy-efficiency goals, mitigate stormwater runoff, or
encourage environmentally sensitive project planning,
design, and construction, to the extent that there are
sufficient project applications eligible for such assistance.
(2) $2,000,000,000 shall be for capitalization grants for
the Drinking Water State Revolving Funds under section 1452
of the Safe Drinking Water Act (42 U.S.C. 300j-12), except
that such funds shall not be subject to the State matching
requirements of section 1452(e) of such Act: /Provided/,
That the amount set aside from this appropriation pursuant
to section 1106 of this Act shall be not more than 2 percent
instead of the percentage specified in such section:
/Provided further,/ That section 1452(k) of the Safe
Drinking Water Act shall not apply to such funds: /Provided
further/, That the requirements of section 1450(e) of such
Act (42 U.S.C. 300j-9(e)) shall apply to the construction
carried out in whole or part with assistance made available
under this heading by a Drinking Water State Revolving fund
under section 1452 of such Act: /Provided further/, That,
notwithstanding the requirements of section 1452(a)(2) of
such Act, each State shall use 50 percent of the amount of
the capitalization grant received by the State under section
1452 of such Act to provide assistance, in the form of
additional subsidization, including forgiveness of
principal, negative interest loans, and grants, to
municipalities (as defined in section 1401 of such Act) for
projects that are included on the State's priority list
established under section 1452(b)(3) of such Act.
(3) $300,000,000 shall be for grants under title VII,
Subtitle G of the Energy Policy Act of 2005: / Provided/,
That the amount set aside from this appropriation pursuant
to section 1106 of this Act shall be not more than 3 percent
instead of the percentage specified in such section.
(4) $100,000,000 shall be to carry out section 104(k) of the
Comprehensive Environmental Response, Compensation, and
Liability Act of 1980: / Provided/, That the amount set
aside from this appropriation pursuant to section 1106 of
this Act shall be not more than 3 percent instead of the
percentage specified in such section.
DEPARTMENT OF AGRICULTURE
Forest Service
capital improvement and maintenance
(including transfer of funds)
For an additional amount for `Capital Improvement and
Maintenance', $650,000,000, for reconstruction, capital
improvement, decommissioning, and maintenance of forest roads,
bridges and trails; alternative energy technologies, energy
efficiency enhancements and deferred maintenance at Federal
facilities; and for remediation of abandoned mine sites, removal
of fish passage barriers, and other critical habitat, forest
improvement and watershed enhancement projects on Federal lands
and waters: /Provided/, That funds may be transferred to `National
Forest System': /Provided further/, That the amount set aside from
this appropriation pursuant to section 1106 of this Act shall be
not more than 5 percent instead of the percentage specified in
such section.
wildland fire management
(including transfers of funds)
For an additional amount for `Wildland Fire Management',
$850,000,000, of which $300,000,000 is for hazardous fuels
reduction, forest health, wood to energy grants and rehabilitation
and restoration activities on Federal lands, and of which
$550,000,000 is for State fire assistance hazardous fuels
projects, volunteer fire assistance, cooperative forest health
projects, city forest enhancements, and wood to energy grants on
State and private lands: /Provided/, That amounts in this
paragraph may be transferred to `State and Private Forestry' and
`National Forest System': /Provided further/, That the amount set
aside from this appropriation pursuant to section 1106 of this Act
shall be not more than 5 percent instead of the percentage
specified in such section.
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Indian Health Service
indian health facilities
For an additional amount for `Indian Health Facilities',
$550,000,000, for priority health care facilities construction
projects and deferred maintenance, and the purchase of equipment
and related services, including but not limited to health
information technology: /Provided/, That notwithstanding any other
provision of law, the amounts available under this paragraph shall
be allocated at the discretion of the Director of the Indian
Health Service: /Provided further/, That the amount set aside from
this appropriation pursuant to section 1106 of this Act shall be
not more than 5 percent instead of the percentage specified in
such section.
OTHER RELATED AGENCIES
Smithsonian Institution
facilities capital
(including transfer of funds)
For an additional amount for `Facilities Capital', $150,000,000,
for deferred maintenance projects, and for repair, revitalization,
and alteration of facilities owned or occupied by the Smithsonian
Institution, by contract or otherwise, as authorized by section 2
of the Act of August 22, 1949 (63 Stat. 623): /Provided/, That
funds may be transferred to `Salaries and Expenses': /Provided
further/, That the amount set aside from this appropriation
pursuant to section 1106 of this Act shall be not more than 5
percent instead of the percentage specified in such section.
National Foundation on the Arts and the Humanities
National Endowment for the Arts
grants and administration
For an additional amount for `Grants and Administration',
$50,000,000, to be distributed in direct grants to fund arts
projects and activities which preserve jobs in the non-profit arts
sector threatened by declines in philanthropic and other support
during the current economic downturn: /Provided/, That 40 percent
of such funds shall be distributed to State arts agencies and
regional arts organizations in a manner similar to the agency's
current practice and 60 percent of such funds shall be for
competitively selected arts projects and activities according to
sections 2 and 5(c) of the National Foundation on the Arts and
Humanities Act of 1965 (20 U.S.C. 951, 954(c)): /Provided
further/, That matching requirements under section 5(e) of such
Act shall be waived: /Provided further/, That the amount set aside
from this appropriation pursuant to section 1106 of this Act shall
be not more than 5 percent instead of the percentage specified in
such section.
TITLE IX--LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION
Subtitle A--Labor
DEPARTMENT OF LABOR
Employment and Training Administration
training and employment services
For an additional amount for `Training and Employment Services'
for activities under the Workforce Investment Act of 1998 (`WIA'),
$4,000,000,000, which shall be available for obligation on the
date of enactment of this Act, as follows:
(1) $500,000,000 for grants to the States for adult
employment and training activities.
(2) $1,200,000,000 for grants to the States for youth
activities, including summer jobs for youth: /Provided/,
That the work readiness performance indicator described in
section 136(b)(2)(A)(ii)(I) of the WIA shall be the only
measure of performance used to assess the effectiveness of
summer jobs for youth provided with such funds: /Provided
further/, That with respect to the youth activities provided
with such funds, section 101(13)(A) of the WIA shall be
applied by substituting `age 24' for `age 21': /Provided
further/, That no portion of the additional funds provided
herein shall be reserved to carry out section 127(b)(1)(A)
of the WIA: /Provided further/, That for purposes of section
127(b)(1)(C)(iv) of the WIA, such funds shall be allotted as
if the total amount of funding available for youth
activities in the fiscal year does not exceed $1,000,000,000.
(3) $1,000,000,000 for grants to the States for dislocated
worker employment and training activities.
(4) $500,000,000 for the dislocated workers assistance
national reserve to remain available for Federal obligation
through June 30, 2010: /Provided/, That such funds shall be
made available for grants only to eligible entities that
serve areas of high unemployment or high poverty and only
for the purposes described in subsection 173(a)(1) of the
WIA: /Provided further/, That the Secretary of Labor shall
ensure that applicants for such funds demonstrate how income
support, child care, and other supportive services necessary
for an individual's participation in job training will be
provided.
(5) $50,000,000 for YouthBuild activities, which shall
remain available for Federal obligation through June 30, 2010.
(6) $750,000,000 for a program of competitive grants for
worker training and placement in high growth and emerging
industry sectors (including projects funded under section
6002 of division B of this Act): /Provided/, That
$500,000,000 shall be for research, labor exchange and job
training projects that prepare workers for careers in the
energy efficiency and renewable energy industries specified
in section 171(e)(1)(B)(ii) of the WIA (as amended by the
Green Jobs Act of 2007): /Provided further/, That in
awarding grants from those funds not designated in the
preceding proviso, the Secretary of Labor shall give
priority to projects that prepare workers for careers in the
health care sector: /Provided further/, That the provisions
of section 1103 of this Act shall not apply to this
appropriation:
/Provided/, That the additional funds provided to States under
this heading are not subject to section 191(a) of the WIA:
/Provided further/, That notwithstanding section 1106 of this Act,
there shall be no amount set aside from the appropriations made in
subsections (1) through (3) under this heading and the amount set
aside for subsections (4) through (6) shall be up to 1 percent
instead of the percentage specified in such section.
community service employment for older americans
For an additional amount for `Community Service Employment for
Older Americans' to carry out title V of the Older Americans Act
of 1965, $120,000,000, which shall be available for obligation on
the date of enactment of this Act: /Provided/, That funds shall be
allotted within 30 days of such enactment to current grantees in
proportion to their allotment in program year 2008.
state unemployment insurance and employment service operations
For an additional amount for `State Unemployment Insurance and
Employment Service Operations' for grants to the States in
accordance with section 6 of the Wagner-Peyser Act, $500,000,000,
which may be expended from the Employment Security Administration
Account in the Unemployment Trust Fund, and which shall be
available for obligation on the date of enactment of this Act:
/Provided/, That such funds shall remain available to the States
through September 30, 2010: /Provided further/, That, with respect
to such funds, section 6(b)(1) of such Act shall be applied by
substituting `one-third' for `two-thirds' in subparagraph (A),
with the remaining one-third of the sums to be allotted in
accordance with section 132(b)(2)(B)(ii)(III) of the Workforce
Investment Act of 1998: /Provided further/, That not less than
$250,000,000 of the amount provided under this heading shall be
used by States for reemployment services for unemployment
insurance claimants (including the integrated Employment Service
and Unemployment Insurance information technology required to
identify and serve the needs of such claimants): /Provided
further/, That the Secretary of Labor shall establish planning and
reporting procedures necessary to provide oversight of funds used
for reemployment services.
Departmental Management
salaries and expenses
(including transfer of funds)
For an additional amount for `Departmental Management',
$80,000,000, for the enforcement of worker protection laws and
regulations, oversight, and coordination activities related to the
infrastructure and unemployment insurance investments in this Act:
/Provided/, That the Secretary of Labor may transfer such sums as
necessary to `Employment and Standards Administration',
`Occupational Safety and Health Administration', and `Employment
and Training Administration--Program Administration' for
enforcement, oversight, and coordination activities: /Provided
further/, That the provisions of section 1106 of this Act shall
not apply to this appropriation.
office of job corps
For an additional amount for `Office of Job Corps', $300,000,000,
for construction, rehabilitation and acquisition of Job Corps
Centers, which shall be available upon the date of enactment of
this Act and remain available for obligation through June 30,
2010: /Provided/, That section 1552(a) of title 31, United States
Code shall not apply to up to 30 percent of such funds, if such
funds are used for a multi-year lease agreement that will result
in construction activities that can commence within 120 days of
enactment of this Act: /Provided further/, That notwithstanding
section 3324(a) of title 31, United States Code, the funds
referred to in the preceding proviso may be used for advance,
progress, and other payments: /Provided further/, That the
Secretary of Labor may transfer up to 15 percent of such funds to
meet the operational needs of such centers, which may include the
provision of additional training for careers in the energy
efficiency and renewable energy industries: /Provided further/,
That priority should be given to activities that can commence
promptly following enactment and to those projects that will
create the greatest impact on the energy efficiency of Job Corps
facilities: /Provided further/, That the Secretary shall provide
to the Committees on Appropriations of the House of
Representatives and the Senate a report on the actual obligations,
expenditures, and unobligated balances for each activity funded
under this heading not later than September 30, 2009 and quarterly
thereafter as long as funding provided under this heading is
available for obligation or expenditure.
GENERAL PROVISIONS, THIS SUBTITLE
SEC. 9101. ELIGIBLE EMPLOYEES IN THE RECREATIONAL MARINE INDUSTRY.
Section 2(3)(F) of the Longshore and Harbor Workers' Compensation
Act (33 U.S.C. 902(3)(F)) is amended--
(1) by striking `, repair, or dismantle'; and
(2) by striking the semicolon and inserting `, or
individuals employed to repair any recreational vessel, or
to dismantle any part of a recreational vessel in connection
with the repair of such vessel;'.
Subtitle B--Health and Human Services
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Resources and Services
For an additional amount for `Health Resources and Services',
$2,188,000,000 which shall be used as follows:
(1) $500,000,000, of which $250,000,000 shall not be
available until October 1, 2009, shall be for grants to
health centers authorized under section 330 of the Public
Health Service Act (`PHS Act').
(2) $1,000,000,000 shall be available for renovation and
repair of health centers authorized under section 330 of the
PHS Act and for the acquisition by such centers of health
information technology systems: /Provided/, That the
timeframe for the award of grants pursuant to section
1103(b) of this Act shall not be later than 180 days after
the date of enactment of this Act instead of the timeframe
specified in such section.
(3) $88,000,000 shall be for fit-out and other costs related
to moving into a facility to be secured through a
competitive lease procurement to replace or renovate a
headquarters building for Public Health Service agencies and
other components of the Department of Health and Human Services.
(4) $600,000,000, of which $300,000,000 shall not be
available until October 1, 2009, shall be for the training
of nurses and primary care physicians and dentists as
authorized under titles VII and VIII of the PHS Act, for the
provision of health care personnel under the National Health
Service Corps program authorized under title III of the PHS
Act, and for the patient navigator program authorized under
title III of the PHS Act.
Centers for Disease Control and Prevention
disease control, research, and training
For an additional amount for `Disease Control, Research, and
Training' for equipment, construction, and renovation of
facilities, including necessary repairs and improvements to leased
laboratories, $462,000,000: /Provided/, That notwithstanding any
other provision of law, the Centers for Disease Control and
Prevention may award a single contract or related contracts for
development and construction of facilities that collectively
include the full scope of the project: /Provided further,/ That
the solicitation and contract shall contain the clause
`availability of funds' found at 48 CFR 52.232-18: /Provided
further/, That in accordance with applicable authorities,
policies, and procedures, the Centers for Disease Control and
Prevention shall acquire real property, and make any necessary
improvements thereon, to relocate and consolidate property and
facilities of the National Institute for Occupational Safety and
Health.
National Institutes of Health
national center for research resources
For an additional amount for `National Center for Research
Resources', $1,500,000,000 for grants or contracts under section
481A of the Public Health Service Act to renovate or repair
existing non-Federal research facilities: /Provided/, That
sections 481A(c)(1)(B)(ii), paragraphs (1), (3), and (4) of
section 481A(e), and section 481B of such Act shall not apply to
the use of such funds: /Provided further/, That the references to
`20 years' in subsections (c)(1)(B)(i) and (f) of section 481A of
such Act are deemed to be references to `10 years' for purposes of
using such funds: /Provided further/, That the National Center for
Research Resources may also use such funds to provide, under the
authority of section 301 and title IV of such Act, shared
instrumentation and other capital research equipment to recipients
of grants and contracts under section 481A of such Act and other
appropriate entities: /Provided further/, That the Director of the
Center shall provide to the Committees on Appropriations of the
House of Representatives and the Senate an annual report
indicating the number of institutions receiving awards of a grant
or contract under section 481A of such Act, the proposed use of
the funding, the average award size, a list of grant or contract
recipients, and the amount of each award: /Provided further/, That
the Center, in obligating such funds, shall require that each
entity that applies for a grant or contract under section 481A for
any project shall include in its application an assurance
described in section 1621(b)(1)(I) of the Public Health Service
Act: /Provided further/, That the Center shall give priority in
the award of grants and contracts under section 481A of such Act
to those applications that are expected to generate demonstrable
energy-saving or beneficial environmental effects: /Provided
further/, That the provisions of section 1103 of this Act shall
not apply to the peer-reviewed grants awarded under this heading.
office of the director
(including transfer of funds)
For an additional amount for `Office of the Director',
$1,500,000,000, of which $750,000,000 shall not be available until
October 1, 2009: /Provided/, That such funds shall be transferred
to the Institutes and Centers of the National Institutes of Health
and to the Common Fund established under section 402A(c)(1) of the
Public Health Service Act in proportion to the appropriations
otherwise made to such Institutes, Centers, and Common Fund for
fiscal year 2009: /Provided further/, That these funds shall be
used to support additional scientific research and shall be merged
with and be available for the same purposes as the appropriation
or fund to which transferred: /Provided further/, That this
transfer authority is in addition to any other transfer authority
available to the National Institutes of Health: /Provided
further/, That none of these funds may be transferred to `National
Institutes of Health--Buildings and Facilities', the Center for
Scientific Review, the Center for Information Technology, the
Clinical Center, the Global Fund for HIV/AIDS, Tuberculosis and
Malaria, or the Office of the Director (except for the transfer to
the Common Fund): /Provided further/, That the provisions of
section 1103 of this Act shall not apply to the peer-reviewed
grants awarded under this heading.
buildings and facilities
For an additional amount for `Buildings and Facilities',
$500,000,000, to fund high priority repair and improvement
projects for National Institutes of Health facilities on the
Bethesda, Maryland campus and other agency locations.
Agency for Healthcare Research and Quality
healthcare research and quality
(including transfer of funds)
For an additional amount for `Healthcare Research and Quality' to
carry out titles III and IX of the Public Health Service Act, part
A of title XI of the Social Security Act, and section 1013 of the
Medicare Prescription Drug, Improvement, and Modernization Act of
2003, $700,000,000 for comparative effectiveness research:
/Provided/, That of the amount appropriated in this paragraph,
$400,000,000 shall be transferred to the Office of the Director of
the National Institutes of Health (`Office of the Director') to
conduct or support comparative effectiveness research: /Provided
further/, That funds transferred to the Office of the Director may
be transferred to the national research institutes and national
centers of the National Institutes of Health and to the Common
Fund established under section 402A(c)(1) of the Public Health
Service Act: /Provided further/, That this transfer authority is
in addition to any other transfer authority available to the
National Institutes of Health: /Provided further/, That the
provisions of section 1103 of this Act shall not apply to the
peer-reviewed grants awarded under this paragraph: /Provided
further/, That the amount set aside from this appropriation
pursuant to section 1106 of this Act shall be not more than 1
percent instead of the percentage specified in such section.
In addition, $400,000,000 shall be available for comparative
effectiveness research to be allocated at the discretion of the
Secretary of Health and Human Services (`Secretary'): /Provided/,
That the funding appropriated in this paragraph shall be used to
accelerate the development and dissemination of research assessing
the comparative effectiveness of health care treatments and
strategies, including through efforts that: (1) conduct, support,
or synthesize research that compares the clinical outcomes,
effectiveness, and appropriateness of items, services, and
procedures that are used to prevent, diagnose, or treat diseases,
disorders, and other health conditions; and (2) encourage the
development and use of clinical registries, clinical data
networks, and other forms of electronic health data that can be
used to generate or obtain outcomes data: /Provided further/, That
the Secretary shall enter into a contract with the Institute of
Medicine, for which no more than $1,500,000 shall be made
available from funds provided in this paragraph, to produce and
submit a report to the Congress and the Secretary by not later
than June 30, 2009, that includes recommendations on the national
priorities for comparative effectiveness research to be conducted
or supported with the funds provided in this paragraph and that
considers input from stakeholders: /Provided further/, That the
Secretary shall consider any recommendations of the Federal
Coordinating Council for Comparative Effectiveness Research
established by section 9201 of this Act and any recommendations
included in the Institute of Medicine report pursuant to the
preceding proviso in designating activities to receive funds
provided in this paragraph and may make grants and contracts with
appropriate entities, which may include agencies within the
Department of Health and Human Services and other governmental
agencies, as well as private sector entities, that have
demonstrated experience and capacity to achieve the goals of
comparative effectiveness research: /Provided further/, That the
Secretary shall publish information on grants and contracts
awarded with the funds provided under this heading within a
reasonable time of the obligation of funds for such grants and
contracts and shall disseminate research findings from such grants
and contracts to clinicians, patients, and the general public, as
appropriate: /Provided further/, That, to the extent feasible, the
Secretary shall ensure that the recipients of the funds provided
by this paragraph offer an opportunity for public comment on the
research: /Provided further/, That the provisions of section 1103
of this Act shall not apply to the peer-reviewed grants awarded
under this paragraph: /Provided further/, That the Secretary shall
provide the Committees on Appropriations of the House of
Representatives and the Senate, the Committee on Energy and
Commerce and the Committee on Ways and Means of the House of
Representatives, and the Committee on Health, Education, Labor,
and Pensions and the Committee on Finance of the Senate with an
annual report on the research conducted or supported through the
funds provided under this heading: /Provided further/, That the
Secretary, jointly with the Directors of the Agency for Healthcare
Research and Quality and the National Institutes of Health, shall
provide the Committees on Appropriations of the House of
Representatives and the Senate a fiscal year 2009 operating plan
for the funds appropriated under this heading prior to making any
Federal obligations of such funds in fiscal year 2009, but not
later than 90 days after the date of enactment of this Act, and a
fiscal year 2010 operating plan for such funds prior to making any
Federal obligations of such funds in fiscal year 2010, but not
later than November 1, 2009, that detail the type of research
being conducted or supported, including the priority conditions
addressed; and specify the allocation of resources within the
Department of Health and Human Services: /Provided further/, That
the Secretary jointly with the Directors of the Agency for
Healthcare Research and Quality and the National Institutes of
Health, shall provide to the Committees on Appropriations of the
House of Representatives and the Senate a report on the actual
obligations, expenditures, and unobligated balances for each
activity funded under this heading not later than November 1,
2009, and every 6 months thereafter as long as funding provided
under this heading is available for obligation or expenditure.
Administration for Children and Families
low-income home energy assistance
For an additional amount for `Low-Income Home Energy Assistance'
for making payments under section 2602(b) and section 2602(d) of
the Low-Income Home Energy Assistance Act of 1981, $1,000,000,000,
which shall become available on October 1, 2009: /Provided/, That
the provisions of section 1106 of this Act shall not apply to this
appropriation.
payments to states for the child care and development block grant
For an additional amount for `Payments to States for the Child
Care and Development Block Grant', $2,000,000,000, of which
$1,000,000,000 shall become available on October 1, 2009, which
shall be used to supplement, not supplant State general revenue
funds for child care assistance for low-income families:
/Provided/, That the provisions of section 1106 of this Act shall
not apply to this appropriation.
children and families services programs
For an additional amount for `Children and Families Services
Programs', $3,200,000,000, which shall be used as follows:
(1) $1,000,000,000 for carrying out activities under the
Head Start Act, of which $500,000,000 shall become available
on October 1, 2009.
(2) $1,100,000,000 for expansion of Early Head Start
programs, as described in section 645A of the Head Start
Act, of which $550,000,000 shall become available on October
1, 2009: /Provided/, That of the funds provided in this
sentence, up to 10 percent shall be available for the
provision of training and technical assistance to such
programs consistent with section 645A(g)(2) of such Act, and
up to 3 percent shall be available for monitoring the
operation of such programs consistent with section 641A of
such Act: /Provided further/, That the preceding proviso
shall apply to this appropriation in lieu of the provisions
of section 1106 of this Act: /Provided further/, That the
provisions of section 1103 of this Act shall not apply to
this appropriation.
(3) $1,000,000,000 for carrying out activities under
sections 674 through 679 of the Community Services Block
Grant Act, of which $500,000,000 shall become available on
October 1, 2009, and of which no part shall be subject to
paragraphs (2) and (3) of section 674(b) of such Act:
/Provided/, That notwithstanding section 675C(a)(1) of such
Act, 100 percent of the funds made available to a State from
this additional amount shall be distributed to eligible
entities as defined in section 673(1) of such Act: /Provided
further/, That for services furnished under such Act during
fiscal years 2009 and 2010, States may apply the last
sentence of section 673(2) of such Act by substituting `200
percent' for `125 percent': /Provided further/, That the
provisions of section 1106 of this Act shall not apply to
this appropriation.
(4) $100,000,000 for carrying out activities under section
1110 of the Social Security Act, of which $50,000,000 shall
become available on October 1, 2009: /Provided/, That the
Secretary of Health and Human Services shall distribute such
amount under the Compassion Capital Fund to eligible
faith-based and community organizations: /Provided further/,
That the provisions of section 1106 of this Act shall not
apply to this appropriation.
Administration on Aging
aging services programs
For an additional amount for `Aging Services Programs' under
section 311, and subparts 1 and 2 of part C, of title III of the
Older Americans Act of 1965, $200,000,000, of which $100,000,000
shall become available on October 1, 2009: /Provided/, That the
provisions of section 1106 of this Act shall not apply to this
appropriation.
Office of the Secretary
office of the national coordinator for health information technology
(including transfer of funds)
For an additional amount for `Office of the National Coordinator
for Health Information Technology' to carry out section 9202 of
this Act, $2,000,000,000, to remain available until expended:
/Provided/, That of such amount, the Secretary of Health and Human
Services shall transfer $20,000,000 to the Director of the
National Institute of Standards and Technology in the Department
of Commerce for continued work on advancing health care
information enterprise integration through activities such as
technical standards analysis and establishment of conformance
testing infrastructure, so long as such activities are coordinated
with the Office of the National Coordinator for Health Information
Technology: /Provided further/, That the provisions of section
1103 of this Act shall not apply to this appropriation: /Provided
further/, That the amount set aside from this appropriation
pursuant to section 1106 of this Act shall be 0.25 percent instead
of the percentage specified in such section: /Provided further/,
That funds available under this heading shall become available for
obligation only upon submission of an annual operating plan by the
Secretary to the Committees on Appropriations of the House of
Representatives and the Senate: /Provided further/, That the
fiscal year 2009 operating plan shall be provided not later than
90 days after enactment of this Act and that subsequent annual
operating plans shall be provided not later than November 1 of
each year: /Provided further/, That these operating plans shall
describe how expenditures are aligned with the specific
objectives, milestones, and metrics of the Federal Health
Information Technology Strategic Plan, including any subsequent
updates to the Plan; the allocation of resources within the
Department of Health and Human Services and other Federal
agencies; and the identification of programs and activities that
are supported: /Provided further/, That the Secretary shall
provide to the Committees on Appropriations of the House of
Representatives and the Senate a report on the actual obligations,
expenditures, and unobligated balances for each major set of
activities not later than November 1, 2009, and every 6 months
thereafter as long as funding provided under this heading is
available for obligation or expenditure: /Provided further/, That
the Comptroller General of the United States shall review on an
annual basis the expenditures from funds provided under this
heading to determine if such funds are used in a manner consistent
with the purpose and requirements under this heading.
public health and social services emergency fund
(including transfer of funds)
For an additional amount for `Public Health and Social Services
Emergency Fund' to support advanced research and development
pursuant to section 319L of the Public Health Service Act,
$430,000,000: /Provided/, That the provisions of section 1103 of
this Act shall not apply to this appropriation.
For an additional amount for `Public Health and Social Services
Emergency Fund' to prepare for and respond to an influenza
pandemic, including the development and purchase of vaccine,
antivirals, necessary medical supplies, diagnostics, and other
surveillance tools, $420,000,000: /Provided/, That the provisions
of section 1103 of this Act shall not apply to this appropriation:
/Provided further/, That products purchased with these funds may,
at the discretion of the Secretary of Health and Human Services
(`Secretary'), be deposited in the Strategic National Stockpile:
/Provided further/, That notwithstanding section 496(b) of the
Public Health Service Act, funds may be used for the construction
or renovation of privately owned facilities for the production of
pandemic influenza vaccine and other biologics, where the
Secretary finds such a contract necessary to secure sufficient
supplies of such vaccines or biologics: /Provided further/, That
funds appropriated in this paragraph may be transferred to other
appropriation accounts of the Department of Health and Human
Services, as determined by the Secretary to be appropriate, to be
used for the purposed specified in this sentence.
For an additional amount for `Public Health and Social Services
Emergency Fund' to improve information technology security at the
Department of Health and Human Services, $50,000,000: /Provided/,
That the Secretary shall prepare and submit a report by not later
than November 1, 2009, and by not later than 15 days after the end
of each month thereafter, updating the status of actions taken and
funds obligated in this and previous appropriations Acts for
pandemic influenza preparedness and response activities,
biomedical advanced research and development activities, Project
BioShield, and Cyber Security.
prevention and wellness fund
(including transfer of funds)
For necessary expenses for a `Prevention and Wellness Fund' to be
administered through the Department of Health and Human Services
Office of the Secretary, $3,000,000,000: /Provided/, That the
provisions of section 1103 of this Act shall not apply to this
appropriation: /Provided further/, That of the amount appropriated
under this heading not less than $2,350,000,000 shall be
transferred to the Centers for Disease Control and Prevention as
follows:
(1) Not less than $954,000,000 shall be used as an
additional amount to carry out the immunization program
authorized by section 317(a), (j), and (k)(1) of the Public
Health Service Act (`section 317 immunization program'), of
which $649,900,000 shall be available on October 1, 2009.
(2) Not less than $296,000,000 shall be used as an
additional amount to carry out Part A of title XIX of the
Public Health Service Act, of which $148,000,000 shall be
available on October 1, 2009.
(3) Not less than $545,000,000 shall be used as an
additional amount to carry out chronic disease, health
promotion, and genomics programs, as jointly determined by
the Secretary of Health and Human Services (`Secretary') and
the Director of the Centers for Disease Control and
Prevention (`Director').
(4) Not less than $335,000,000 shall be used as an
additional amount to carry out domestic HIV/AIDS, viral
hepatitis, sexually-transmitted diseases, and tuberculosis
prevention programs, as jointly determined by the Secretary
and the Director.
(5) Not less than $60,000,000 shall be used as an additional
amount to carry out environmental health programs, as
jointly determined by the Secretary and the Director.
(6) Not less than $50,000,000 shall be used as an additional
amount to carry out injury prevention and control programs,
as jointly determined by the Secretary and the Director.
(7) Not less than $30,000,000 shall be used as an additional
amount for public health workforce development activities,
as jointly determined by the Secretary and the Director.
(8) Not less than $40,000,000 shall be used as an additional
amount for the National Institute for Occupational Safety
and Health to carry out research activities within the
National Occupational Research Agenda.
(9) Not less than $40,000,000 shall be used as an additional
amount for the National Center for Health Statistics:
/Provided further/, That of the amount appropriated under this
heading not less than $150,000,000 shall be available for an
additional amount to carry out activities to implement a national
action plan to prevent healthcare-associated infections, as
determined by the Secretary, of which not less $50,000,000 shall
be provided to States to implement healthcare-associated infection
reduction strategies: /Provided further/, That of the amount
appropriated under this heading $500,000,000 shall be used to
carry out evidence-based clinical and community-based prevention
and wellness strategies and public health workforce development
activities authorized by the Public Health Service Act, as
determined by the Secretary, that deliver specific, measurable
health outcomes that address chronic and infectious disease rates
and health disparities, which shall include evidence-based
interventions in obesity, diabetes, heart disease, cancer, tobacco
cessation and smoking prevention, and oral health, and which may
be used for the Healthy Communities program administered by the
Centers for Disease Control and Prevention and other existing
community-based programs administered by the Department of Health
and Human Services: /Provided further/, That funds appropriated in
the preceding proviso may be transferred to other appropriation
accounts of the Department of Health and Human Services, as
determined by the Secretary to be appropriate: /Provided further/,
That the Secretary shall, directly or through contracts with
public or private entities, provide for annual evaluations of
programs carried out with funds provided under this heading in
order to determine the quality and effectiveness of the programs:
/Provided further/, That the Secretary shall, not later than 1
year after the date of enactment of this Act, submit to the
Committees on Appropriations of the House of Representatives and
the Senate, the Committee on Energy and Commerce of the House of
Representatives, and the Committee on Health, Education, Labor,
and Pensions of the Senate, a report: (1) summarizing the annual
evaluations of programs from the preceding proviso; and (2) making
recommendations concerning future spending on prevention and
wellness activities, including any recommendations made by the
United States Preventive Services Task Force in the area of
clinical preventive services and the Task Force on Community
Preventive Services in the area of community preventive services:
/Provided further/, That the Secretary shall enter into a contract
with the Institute of Medicine, for which no more than $1,500,000
shall be made available from funds provided in this paragraph, to
produce and submit a report to the Congress and the Secretary by
no later than 1 year after the date of enactment of this Act that
includes recommendations on the national priorities for clinical
and community-based prevention and wellness activities that will
have a positive impact in preventing illness or reducing
healthcare costs and that considers input from stakeholders:
/Provided further/, That the Secretary shall provide to the
Committees on Appropriations of the House of Representatives and
the Senate a fiscal year 2009 operating plan for the Prevention
and Wellness Fund prior to making any Federal obligations of funds
provided under this heading in fiscal year 2009 (excluding funds
to carry out the section 317 immunization program), but not later
than 90 days after the date of enactment of this Act, and a fiscal
year 2010 operating plan for the Prevention and Wellness Fund
prior to making any Federal obligations of funds provided under
this heading in fiscal year 2010 (excluding funds to carry out the
section 317 immunization program), but not later than November 1,
2009, that indicate the prevention priorities to be addressed;
provide measurable goals for each prevention priority; detail the
allocation of resources within the Department of Health and Human
Services; and identify which programs or activities are supported,
including descriptions of any new programs or activities:
/Provided further/, That the Secretary shall provide to the
Committees on Appropriations of the House of Representatives and
the Senate a report on the actual obligations, expenditures, and
unobligated balances for each activity funded under this heading
not later than November 1, 2009, and every 6 months thereafter as
long as funding provided under this heading is available for
obligation or expenditure.
GENERAL PROVISIONS, THIS SUBTITLE
SEC. 9201. FEDERAL COORDINATING COUNCIL FOR COMPARATIVE
EFFECTIVENESS RESEARCH.
(a) Establishment- There is hereby established a Federal
Coordinating Council for Comparative Effectiveness Research (in
this section referred to as the `Council').
(b) Purpose; Duties- The Council shall--
(1) assist the offices and agencies of the Federal
Government, including the Departments of Health and Human
Services, Veterans Affairs, and Defense, and other Federal
departments or agencies, to coordinate the conduct or
support of comparative effectiveness and related health
services research; and
(2) advise the President and Congress on--
(A) strategies with respect to the infrastructure
needs of comparative effectiveness research within the
Federal Government;
(B) appropriate organizational expenditures for
comparative effectiveness research by relevant Federal
departments and agencies; and
(C) opportunities to assure optimum coordination of
comparative effectiveness and related health services
research conducted or supported by relevant Federal
departments and agencies, with the goal of reducing
duplicative efforts and encouraging coordinated and
complementary use of resources.
(c) Membership-
(1) NUMBER AND APPOINTMENT- The Council shall be composed of
not more than 15 members, all of whom are senior Federal
officers or employees with responsibility for health-related
programs, appointed by the President, acting through the
Secretary of Health and Human Services (in this section
referred to as the `Secretary'). Members shall first be
appointed to the Council not later than 30 days after the
date of the enactment of this Act.
(2) MEMBERS-
(A) IN GENERAL- The members of the Council shall
include one senior officer or employee from each of
the following agencies:
(i) The Agency for Healthcare Research and Quality.
(ii) The Centers for Medicare and Medicaid Services.
(iii) The National Institutes of Health.
(iv) The Office of the National Coordinator for
Health Information Technology.
(v) The Food and Drug Administration.
(vi) The Veterans Health Administration within
the Department of Veterans Affairs.
(vii) The office within the Department of
Defense responsible for management of the
Department of Defense Military Health Care System.
(B) QUALIFICATIONS- At least half of the members of
the Council shall be physicians or other experts with
clinical expertise.
(3) CHAIRMAN; VICE CHAIRMAN- The Secretary shall serve as
Chairman of the Council and shall designate a member to
serve as Vice Chairman.
(d) Reports-
(1) INITIAL REPORT- Not later than June 30, 2009, the
Council shall submit to the President and the Congress a
report containing information describing Federal activities
on comparative effectiveness research and recommendations
for additional investments in such research conducted or
supported from funds made available for allotment by the
Secretary for comparative effectiveness research in this Act.
(2) ANNUAL REPORT- The Council shall submit to the President
and Congress an annual report regarding its activities and
recommendations concerning the infrastructure needs,
appropriate organizational expenditures and opportunities
for better coordination of comparative effectiveness
research by relevant Federal departments and agencies.
(e) Staffing; Support- From funds made available for allotment by
the Secretary for comparative effectiveness research in this Act,
the Secretary shall make available not more than 1 percent to the
Council for staff and administrative support.
SEC. 9202. INVESTMENT IN HEALTH INFORMATION TECHNOLOGY.
(a) In General- The Secretary of Health and Human Services shall
invest in the infrastructure necessary to allow for and promote
the electronic exchange and use of health information for each
individual in the United States consistent with the goals outlined
in the Strategic Plan developed by the Office of the National
Coordinator for Health Information Technology. Such investment
shall include investment in at least the following:
(1) Health information technology architecture that will
support the nationwide electronic exchange and use of health
information in a secure, private, and accurate manner,
including connecting health information exchanges, and which
may include updating and implementing the infrastructure
necessary within different agencies of the Department of
Health and Human Services to support the electronic use and
exchange of health information.
(2) Integration of health information technology, including
electronic medical records, into the initial and ongoing
training of health professionals and others in the
healthcare industry who would be instrumental to improving
the quality of healthcare through the smooth and accurate
electronic use and exchange of health information as
determined by the Secretary.
(3) Training on and dissemination of information on best
practices to integrate health information technology,
including electronic records, into a provider's delivery of
care, including community health centers receiving
assistance under section 330 of the Public Health Service
Act and providers participating in one or more of the
programs under titles XVIII, XIX, and XXI of the Social
Security Act (relating to Medicare, Medicaid, and the State
Children's Health Insurance Program).
(4) Infrastructure and tools for the promotion of
telemedicine, including coordination among Federal agencies
in the promotion of telemedicine.
(5) Promotion of the interoperability of clinical data
repositories or registries.
The Secretary shall implement paragraph (3) in coordination with
State agencies administering the Medicaid program and the State
Children's Health Insurance Program.
(b) Limitation- None of the funds appropriated to carry out this
section may be used to make significant investments in, or provide
significant funds for, the acquisition of hardware or software or
for the use of an electronic health or medical record, or
significant components thereof, unless such investments or funds
are for certified products that would permit the full and accurate
electronic exchange and use of health information in a medical
record, including standards for security, privacy, and quality
improvement functions adopted by the Office of the National
Coordinator for Health Information Technology.
(c) Report- The Secretary shall annually report to the Committees
on Energy and Commerce, on Ways and Means, on Science and
Technology, and on Appropriations of the House of Representatives
and the Committees on Finance, on Health, Education, Labor, and
Pensions, and on Appropriations of the Senate on the uses of these
funds and their impact on the infrastructure for the electronic
exchange and use of health information.
Subtitle C--Education
DEPARTMENT OF EDUCATION
Education for the Disadvantaged
For an additional amount for `Education for the Disadvantaged' to
carry out title I of the Elementary and Secondary Education Act of
1965 (`ESEA'), $13,000,000,000: /Provided/, That $5,500,000,000
shall be available for targeted grants under section 1125 of the
ESEA, of which $2,750,000,000 shall become available on July 1,
2009, and shall remain available through September 30, 2010, and
$2,750,000,000 shall become available on July 1, 2010, and shall
remain available through September 30, 2011: /Provided further/,
That $5,500,000,000 shall be available for education finance
incentive grants under section 1125A of the ESEA, of which
$2,750,000,000 shall become available on July 1, 2009, and shall
remain available through September 30, 2010, and $2,750,000,000
shall become available on July 1, 2010, and shall remain available
through September 30, 2011: /Provided further/, That
$2,000,000,000 shall be for school improvement grants under
section 1003(g) of the ESEA, of which $1,000,000,000 shall become
available on July 1, 2009, and shall remain available through
September 30, 2010, and $1,000,000,000 shall become available on
July 1, 2010, and shall remain available through September 30,
2011: /Provided further/, That the provisions of section 1106 of
this Act shall not apply to this appropriation.
Impact Aid
For an additional amount for `Impact Aid' to carry out section
8007 of title VIII of the Elementary and Secondary Education Act
of 1965, $100,000,000, which shall remain available through
September 30, 2010: /Provided/, That the amount set aside from
this appropriation pursuant to section 1106 of this Act shall be 1
percent instead of the percentage specified in such section.
School Improvement Programs
For an additional amount for `School Improvement Programs' to
carry out subpart 1, part D of title II of the Elementary and
Secondary Education Act of 1965 (`ESEA'), and subtitle B of title
VII of the McKinney-Vento Homeless Assistance Act, $1,066,000,000:
/Provided/, That $1,000,000,000 shall be available for subpart 1,
part D of title II of the ESEA, of which $500,000,000 shall become
available on July 1, 2009, and shall remain available through
September 30, 2010, and $500,000,000 shall become available on
July 1, 2010, and remain available through September 30, 2011:
/Provided further/, That the provisions of section 1106 of this
Act shall not apply to these funds: /Provided further/, That
$66,000,000 shall be available for subtitle B of title VII of the
McKinney-Vento Homeless Assistance Act, of which $33,000,000 shall
become available on July 1, 2009, and shall remain available
through September 30, 2010, and $33,000,000 shall become available
on July 1, 2010, and remain available through September 30, 2011.
Innovation and Improvement
For an additional amount for `Innovation and Improvement' to carry
out subpart 1, part D and subpart 2, part B of title V of the
Elementary and Secondary Education Act of 1965 (`ESEA'),
$225,000,000: /Provided/, That $200,000,000 shall be available for
subpart 1, part D of title V of the ESEA: /Provided further/, That
these funds shall be expended as directed in the fifth, sixth, and
seventh provisos under the heading `Innovation and Improvement' in
the Department of Education Appropriations Act, 2008: /Provided
further/, That a portion of these funds shall also be used for a
rigorous national evaluation by the Institute of Education
Sciences, utilizing randomized controlled methodology to the
extent feasible, that assesses the impact of performance-based
teacher and principal compensation systems supported by the funds
provided in this Act on teacher and principal recruitment and
retention in high-need schools and subjects: /Provided further/,
That $25,000,000 shall be available for subpart 2, part B of title
V of the ESEA: /Provided further/, That the amount set aside from
this appropriation pursuant to section 1106 of this Act shall be 1
percent instead of the percentage specified in such section.
Special Education
For an additional amount for `Special Education' for carrying out
section 611 and part C of the Individuals with Disabilities
Education Act (`IDEA'), $13,600,000,000: /Provided/, That
$13,000,000,000 shall be available for section 611 of the IDEA, of
which $6,000,000,000 shall become available on July 1, 2009, and
remain available through September 30, 2010, and $7,000,000,000
shall become available on July 1, 2010, and remain available
through September 30, 2011: /Provided further/, That $600,000,000
shall be available for part C of the IDEA, of which $300,000,000
shall become available on July 1, 2009, and remain available
through September 30, 2010, and $300,000,000 shall become
available on July 1, 2010, and remain available through September
30, 2011: /Provided further/, That by July 1, 2009, the Secretary
of Education shall reserve the amount needed for grants under
section 643(e) of the IDEA from funds available for obligation on
July 1, 2009, with any remaining funds to be allocated in
accordance with section 643(c) of the IDEA: /Provided further/,
That by July 1, 2010, the Secretary shall reserve the amount
needed for grants under section 643(e) of the IDEA from funds
available for obligation on July 1, 2010, with any remaining funds
to be allocated in accordance with section 643(c) of the IDEA:
/Provided further/, That if every State, as defined by section
602(31) of the IDEA, reaches its maximum allocation under section
611(d)(3)(B)(iii) of the IDEA, and there are remaining funds, such
funds shall be proportionally allocated to each State subject to
the maximum amounts contained in section 611(a)(2) of the IDEA:
/Provided further/, That the provisions of section 1106 of this
Act shall not apply to this appropriation.
Rehabilitation Services and Disability Research
For an additional amount for `Rehabilitation Services and
Disability Research' for providing grants to States to carry out
the Vocational Rehabilitation Services program under part B of
title I and parts B and C of chapter 1 and chapter 2 of title VII
of the Rehabilitation Act of 1973, $700,000,000: /Provided/, That
$500,000,000 shall be available for part B of title I of the
Rehabilitation Act, of which $250,000,000 shall become available
on October 1, 2009: /Provided further/, That funds provided herein
shall not be considered in determining the amount required to be
appropriated under section 100(b)(1) of the Rehabilitation Act of
1973 in any fiscal year: /Provided further/, That, notwithstanding
section 7(14)(A), the Federal share of the costs of vocational
rehabilitation services provided with the funds provided herein
shall be 100 percent: /Provided further/, That the provisions of
section 1106 of this Act shall not apply to these funds: /Provided
further/, That $200,000,000 shall be available for parts B and C
of chapter 1 and chapter 2 of title VII of the Rehabilitation Act,
of which $100,000,000 shall become available on October 1, 2009:
/Provided further/, That $34,775,000 shall be for State Grants,
$114,581,000 shall be for independent living centers, and
$50,644,000 shall be for services for older blind individuals.
Student Financial Assistance
For an additional amount for `Student Financial Assistance' to
carry out subpart 1 of part A and part C of title IV of the Higher
Education Act of 1965 (`HEA'), $16,126,000,000, which shall remain
available through September 30, 2011: /Provided/, That
$15,636,000,000 shall be available for subpart 1of part A of title
IV of the HEA: /Provided further/, That $490,000,000 shall be
available for part C of title IV of the HEA, of which $245,000,000
shall become available on October 1, 2009: /Provided further/,
That the provisions of section 1106 of this Act shall not apply to
this appropriation.
The maximum Pell Grant for which a student shall be eligible
during award year 2009-2010 shall be $4,860.
Student Aid Administration
For an additional amount for `Student Aid Administration' to carry
out part D of title I, and subparts 1, 3, and 4 of part A, and
parts B, C, D, and E of title IV of the Higher Education Act of
1965, $50,000,000, which shall remain available through September
30, 2011: /Provided/, That such amount shall also be available for
an independent audit of programs and activities authorized under
section 459A of such Act: /Provided further/, That the provisions
of section 1106 of this Act shall not apply to this appropriation.
Higher Education
For an additional amount for `Higher Education' to carry out part
A of title II of the Higher Education Act of 1965, $100,000,000:
/Provided/, That section 203(c)(1) of such Act shall not apply to
awards made with these funds.
Institute of Education Sciences
For an additional amount for Institute of Education Sciences to
carry out section 208 of the Educational Technical Assistance Act,
$250,000,000, which may be used for Statewide data systems that
include postsecondary and workforce information, of which up to
$5,000,000 may be used for State data coordinators and for awards
to public or private organizations or agencies to improve data
coordination: /Provided/, That the amount set aside from this
appropriation pursuant to section 1106 of this Act shall be 1
percent instead of the percentage specified in such section.
School Modernization, Renovation, and Repair
For carrying out section 9301 of this Act, $14,000,000,000:
/Provided/, That amount available under section 9301 of this Act
for administration and oversight shall take the place of the
set-aside under section 1106 of this Act.
Higher Education Modernization, Renovation, and Repair
For carrying out section 9302 of this Act, $6,000,000,000:
/Provided/, That amount available under section 9302 of this Act
for administration and oversight shall take the place of the
set-aside under section 1106 of this Act.
GENERAL PROVISIONS, THIS SUBTITLE
SEC. 9301. 21ST CENTURY GREEN HIGH-PERFORMING PUBLIC SCHOOL
FACILITIES.
(a) Definitions- In this section:
(1) The term `Bureau-funded school' has the meaning given to
such term in section 1141 of the Education Amendments of
1978 (25 U.S.C. 2021).
(2) The term `charter school' has the meaning given such
term in section 5210 of the Elementary and Secondary
Education Act of 1965.
(3) The term `local educational agency'--
(A) has the meaning given to that term in section 9101
of the Elementary and Secondary Education Act of 1965,
and shall also include the Recovery School District of
Louisiana and the New Orleans Public Schools; and
(B) includes any public charter school that
constitutes a local educational agency under State law.
(4) The term `outlying area'--
(A) means the United States Virgin Islands, Guam,
American Samoa, and the Commonwealth of the Northern
Mariana Islands; and
(B) includes the freely associated states of the
Republic of the Marshall Islands, the Federated States
of Micronesia, and the Republic of Palau.
(5) The term `public school facilities' includes charter
schools.
(6) The term `State' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico.
(7) The term `LEED Green Building Rating System' means the
United States Green Building Council Leadership in Energy
and Environmental Design green building rating standard
referred to as the LEED Green Building Rating System.
(8) The term `Energy Star' means the Energy Star program of
the United States Department of Energy and the United States
Environmental Protection Agency.
(9) The term `CHPS Criteria' means the green building rating
program developed by the Collaborative for High Performance
Schools.
(10) The term `Green Globes' means the Green Building
Initiative environmental design and rating system referred
to as Green Globes.
(b) Purpose- Grants under this section shall be for the purpose of
modernizing, renovating, or repairing public school facilities,
based on their need for such improvements, to be safe, healthy,
high-performing, and up-to-date technologically.
(c) Allocation of Funds-
(1) RESERVATIONS-
(A) IN GENERAL- From the amount appropriated to carry
out this section, the Secretary of Education shall
reserve 1 percent of such amount, consistent with the
purpose described in subsection (b)--
(i) to provide assistance to the outlying areas; and
(ii) for payments to the Secretary of the
Interior to provide assistance to Bureau-funded
schools.
(B) ADMINISTRATION AND OVERSIGHT- The Secretary may,
in addition, reserve up to $6,000,000 of such amount
for administration and oversight of this section.
(2) ALLOCATION TO STATES-
(A) STATE-BY-STATE ALLOCATION- Of the amount
appropriated to carry out this section, and not
reserved under paragraph (1), each State shall be
allocated an amount in proportion to the amount
received by all local educational agencies in the
State under part A of title I of the Elementary and
Secondary Education Act of 1965 for fiscal year 2008
relative to the total amount received by all local
educational agencies in every State under such part
for such fiscal year.
(B) STATE ADMINISTRATION- A State may reserve up to 1
percent of its allocation under subparagraph (A) to
carry out its responsibilities under this section,
including--
(i) providing technical assistance to local
educational agencies;
(ii) developing, within 6 months of receiving
its allocation under subparagraph (A), a plan to
develop a database that includes an inventory of
public school facilities in the State and the
modernization, renovation, and repair needs of,
energy use by, and the carbon footprint of such
schools; and
(iii) developing a school energy efficiency
quality plan.
(C) GRANTS TO LOCAL EDUCATIONAL AGENCIES- From the
amount allocated to a State under subparagraph (A),
each local educational agency in the State that meets
the requirements of section 1112(a) of the Elementary
and Secondary Education Act of 1965 shall receive an
amount in proportion to the amount received by such
local educational agency under part A of title I of
that Act for fiscal year 2008 relative to the total
amount received by all local educational agencies in
the State under such part for such fiscal year, except
that no local educational agency that received funds
under part A of title I of that Act for such fiscal
year shall receive a grant of less than $5,000.
(D) SPECIAL RULE- Section 1122(c)(3) of the Elementary
and Secondary Education Act of 1965 shall not apply to
subparagraph (A) or (C).
(3) SPECIAL RULES-
(A) DISTRIBUTIONS BY SECRETARY- The Secretary of
Education shall make and distribute the reservations
and allocations described in paragraphs (1) and (2)
not later than 30 days after the date of the enactment
of this Act.
(B) DISTRIBUTIONS BY STATES- A State shall make and
distribute the allocations described in paragraph
(2)(C) within 30 days of receiving such funds from the
Secretary.
(d) Use It or Lose It Requirements-
(1) DEADLINE FOR BINDING COMMITMENTS- Each local educational
agency receiving funds under this section shall enter into
contracts or other binding commitments not later than 1 year
after the date of the enactment of this Act (or not later
than 9 months after such funds are awarded, if later) to
make use of 50 percent of such funds, and shall enter into
contracts or other binding commitments not later than 2
years after the date of the enactment of this Act (or not
later than 21 months after such funds are awarded, if later)
to make use of the remaining funds. In the case of
activities to be carried out directly by a local educational
agency (rather than by contracts, subgrants, or other
arrangements with third parties), a certification by the
agency specifying the amounts, planned timing, and purpose
of such expenditures shall be deemed a binding commitment
for purposes of this subsection.
(2) REDISTRIBUTION OF UNCOMMITTED FUNDS- A State shall
recover or deobligate any funds not committed in accordance
with paragraph (1), and redistribute such funds to other
local educational agencies eligible under this section and
able to make use of such funds in a timely manner (including
binding commitments within 120 days after the reallocation).
(e) Allowable Uses of Funds- A local educational agency receiving
a grant under this section shall use the grant for modernization,
renovation, or repair of public school facilities, including--
(1) repairing, replacing, or installing roofs, including
extensive, intensive or semi-intensive green roofs,
electrical wiring, plumbing systems, sewage systems,
lighting systems, or components of such systems, windows, or
doors, including security doors;
(2) repairing, replacing, or installing heating,
ventilation, air conditioning systems, or components of such
systems (including insulation), including indoor air quality
assessments;
(3) bringing public schools into compliance with fire,
health, and safety codes, including professional
installation of fire/life safety alarms, including
modernizations, renovations, and repairs that ensure that
schools are prepared for emergencies, such as improving
building infrastructure to accommodate security measures;
(4) modifications necessary to make public school facilities
accessible to comply with the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.) and section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), except that such
modifications shall not be the primary use of the grant;
(5) asbestos or polychlorinated biphenyls abatement or
removal from public school facilities;
(6) implementation of measures designed to reduce or
eliminate human exposure to lead-based paint hazards through
methods including interim controls, abatement, or a
combination of each;
(7) implementation of measures designed to reduce or
eliminate human exposure to mold or mildew;
(8) upgrading or installing educational technology
infrastructure to ensure that students have access to
up-to-date educational technology;
(9) technology activities that are carried out in connection
with school repair and renovation, including--
(A) wiring;
(B) acquiring hardware and software;
(C) acquiring connectivity linkages and resources; and
(D) acquiring microwave, fiber optics, cable, and
satellite transmission equipment;
(10) modernization, renovation, or repair of science and
engineering laboratory facilities, libraries, and career and
technical education facilities, including those related to
energy efficiency and renewable energy, and improvements to
building infrastructure to accommodate bicycle and
pedestrian access;
(11) renewable energy generation and heating systems,
including solar, photovoltaic, wind, geothermal, or biomass,
including wood pellet, systems or components of such systems;
(12) other modernization, renovation, or repair of public
school facilities to--
(A) improve teachers' ability to teach and students'
ability to learn;
(B) ensure the health and safety of students and staff;
(C) make them more energy efficient; or
(D) reduce class size; and
(13) required environmental remediation related to public
school modernization, renovation, or repair described in
paragraphs (1) through (12).
(f) Impermissible Uses of Funds- No funds received under this
section may be used for--
(1) payment of maintenance costs; or
(2) stadiums or other facilities primarily used for athletic
contests or exhibitions or other events for which admission
is charged to the general public.
(g) Supplement, Not Supplant- A local educational agency receiving
a grant under this section shall use such Federal funds only to
supplement and not supplant the amount of funds that would, in the
absence of such Federal funds, be available for modernization,
renovation, or repair of public school facilities.
(h) Prohibition Regarding State Aid- A State shall not take into
consideration payments under this section in determining the
eligibility of any local educational agency in that State for
State aid, or the amount of State aid, with respect to free public
education of children.
(i) Special Rule on Contracting- Each local educational agency
receiving a grant under this section shall ensure that, if the
agency carries out modernization, renovation, or repair through a
contract, the process for any such contract ensures the maximum
number of qualified bidders, including local, small, minority, and
women- and veteran-owned businesses, through full and open
competition.
(j) Special Rule on Use of Iron and Steel Produced in the United
States-
(1) IN GENERAL- A local educational agency shall not
obligate or expend funds received under this section for a
project for the modernization, renovation, or repair of a
public school facility unless all of the iron and steel used
in such project is produced in the United States.
(2) EXCEPTIONS- The provisions of paragraph (1) shall not
apply in any case in which the local educational agency
finds that--
(A) their application would be inconsistent with the
public interest;
(B) iron and steel are not produced in the United
States in sufficient and reasonably available
quantities and of a satisfactory quality; or
(C) inclusion of iron and steel produced in the United
States will increase the cost of the overall project
contract by more than 25 percent.
(k) Application of GEPA- The grant program under this section is
an applicable program (as that term is defined in section 400 of
the General Education Provisions Act (20 U.S.C. 1221)) subject to
section 439 of such Act (20 U.S.C. 1232b).
(l) Charter Schools- A local educational agency receiving an
allocation under this section shall use an equitable portion of
that allocation for allowable activities benefitting charter
schools within its jurisdiction, as determined based on the
percentage of students from low-income families in the schools of
the agency who are enrolled in charter schools and on the needs of
those schools as determined by the agency.
(m) Green Schools-
(1) IN GENERAL- A local educational agency shall use not
less than 25 percent of the funds received under this
section for public school modernization, renovation, or
repairs that are certified, verified, or consistent with any
applicable provisions of--
(A) the LEED Green Building Rating System;
(B) Energy Star;
(C) the CHPS Criteria;
(D) Green Globes; or
(E) an equivalent program adopted by the State or
another jurisdiction with authority over the local
educational agency.
(2) TECHNICAL ASSISTANCE- The Secretary, in consultation
with the Secretary of Energy and the Administrator of the
Environmental Protection Agency, shall provide outreach and
technical assistance to States and school districts
concerning the best practices in school modernization,
renovation, and repair, including those related to student
academic achievement and student and staff health, energy
efficiency, and environmental protection.
(n) Youthbuild Programs- The Secretary of Education, in
consultation with the Secretary of Labor, shall work with
recipients of funds under this section to promote appropriate
opportunities for participants in a YouthBuild program (as defined
in section 173A of the Workforce Investment Act of 1998 (29 U.S.C.
2918a)) to gain employment experience on modernization,
renovation, and repair projects funded under this section.
(o) Reporting-
(1) REPORTS BY LOCAL EDUCATIONAL AGENCIES- Local educational
agencies receiving a grant under this section shall compile,
and submit to the State educational agency (which shall
compile and submit such reports to the Secretary), a report
describing the projects for which such funds were used,
including--
(A) the number of public schools in the agency,
including the number of charter schools;
(B) the total amount of funds received by the local
educational agency under this section and the amount
of such funds expended, including the amount expended
for modernization, renovation, and repair of charter
schools;
(C) the number of public schools in the agency with a
metro-centric locale code of 41, 42, or 43 as
determined by the National Center for Education
Statistics and the percentage of funds received by the
agency under this section that were used for projects
at such schools;
(D) the number of public schools in the agency that
are eligible for schoolwide programs under section
1114 of the Elementary and Secondary Education Act of
1965 and the percentage of funds received by the
agency under this section that were used for projects
at such schools;
(E) the cost of each project, which, if any, of the
standards described in subsection (k)(1) the project
met, and any demonstrable or expected academic,
energy, or environmental benefits as a result of the
project;
(F) if flooring was installed, whether--
(i) it was low- or no-VOC (Volatile Organic
Compounds) flooring;
(ii) it was made from sustainable materials; and
(iii) use of flooring described in clause (i) or
(ii) was cost effective; and
(G) the total number and amount of contracts awarded,
and the number and amount of contracts awarded to
local, small, minority-owned, women-owned, and
veteran-owned businesses.
(2) REPORTS BY SECRETARY- Not later than December 31, 2011,
the Secretary of Education shall submit to the Committees on
Education and Labor and Appropriations of the House of
Representatives and the Committees on Health, Education,
Labor, and Pensions and Appropriations of the Senate a
report on grants made under this section, including the
information described in paragraph (1), the types of
modernization, renovation, and repair funded, and the number
of students impacted, including the number of students
counted under section 1113(a)(5) of the Elementary and
Secondary Education Act of 1965.
SEC. 9302. HIGHER EDUCATION MODERNIZATION, RENOVATION, AND REPAIR.
(a) Purpose- Grants awarded under this section shall be for the
purpose of modernizing, renovating, and repairing institution of
higher education facilities that are primarily used for
instruction, research, or student housing.
(b) Grants to State Higher Education Agencies-
(1) FORMULA- From the amounts appropriated to carry out this
section, the Secretary of Education shall allocate funds to
State higher education agencies based on the number of
students attending institutions of higher education, with
the State higher education agency in each State receiving an
amount that is in proportion to the number of full-time
equivalent undergraduate students attending institutions of
higher education in such State for the most recent fiscal
year for which there are data available, relative to the
total number of full-time equivalent undergraduate students
attending institutions of higher education in all States for
such fiscal year.
(2) APPLICATION- To be eligible to receive an allocation
from the Secretary under paragraph (1), a State higher
education agency shall submit an application to the
Secretary at such time and in such manner as the Secretary
may reasonably require.
(3) REALLOCATION- Amounts allocated to a State higher
education agency under this section that are not obligated
by such agency within 6 months of the date the agency
receives such amounts shall be returned to the Secretary,
and the Secretary shall reallocate such amounts to State
higher education agencies in other States on the same basis
as the original allocations under paragraph (1)(B).
(4) ADMINISTRATION AND OVERSIGHT EXPENSES- From the amounts
appropriated to carry out this section, not more than
$6,000,000 shall be available to the Secretary for
administrative and oversight expenses related to carrying
out this section.
(c) Use of Grants by State Higher Education Agencies-
(1) SUBGRANTS TO INSTITUTIONS OF HIGHER EDUCATION-
(A) IN GENERAL- Except as provided in paragraph (2),
each State higher education agency receiving an
allocation under subsection (b)(1) shall use the
amount allocated to award subgrants to institutions of
higher education within the State to carry out
projects in accordance with subsection (d)(1).
(B) SUBGRANT AWARD ALLOCATION- A State higher
education agency shall award subgrants to institutions
of higher education under this section based on the
demonstrated need of each institution for facility
modernization, renovation, and repair.
(C) PRIORITY CONSIDERATIONS- In awarding subgrants
under this section, each State higher education agency
shall give priority consideration to institutions of
higher education with any of the following
characteristics:
(i) The institution is eligible for Federal
assistance under title III or title V of the
Higher Education Act of 1965.
(ii) The institution was impacted by a major
disaster or emergency declared by the President
(as defined in section 102(2) of the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5122(2))), including
an institution affected by a Gulf hurricane
disaster, as such term is defined in section
824(g)(1) of the Higher Education Act of 1965
(20 U.S.C. 11611-3(g)(1)).
(iii) The institution demonstrates that the
proposed project or projects to be carried out
with a subgrant under this section will increase
the energy efficiency of the institution's
facilities and comply with the LEED Green
Building Rating System.
(2) ADMINISTRATIVE AND OVERSIGHT EXPENSES- Of the allocation
amount received under subsection (b)(1), a State higher
education agency may reserve not more than 5 percent of such
amount, or $500,000, whichever is less, for administrative
and oversight expenses related to carrying out this section.
(d) Use of Subgrants by Institutions of Higher Education-
(1) PERMISSIBLE USES OF FUNDS- An institution of higher
education receiving a subgrant under this section shall use
such subgrant to modernize, renovate, or repair facilities
of the institution that are primarily used for instruction,
research, or student housing, which may include any of the
following:
(A) Repair, replacement, or installation of roofs,
electrical wiring, plumbing systems, sewage systems,
or lighting systems.
(B) Repair, replacement, or installation of heating,
ventilation, or air conditioning systems (including
insulation).
(C) Compliance with fire and safety codes, including--
(i) professional installation of fire or life
safety alarms; and
(ii) modernizations, renovations, and repairs
that ensure that the institution's facilities
are prepared for emergencies, such as improving
building infrastructure to accommodate security
measures.
(D) Retrofitting necessary to increase the energy
efficiency of the institution's facilities.
(E) Renovations to the institution's facilities
necessary to comply with accessibility requirements in
the Americans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.) and section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794).
(F) Abatement or removal of asbestos from the
institution's facilities.
(G) Modernization, renovation, and repair relating to
improving science and engineering laboratories,
libraries, and instructional facilities.
(H) Upgrading or installation of educational
technology infrastructure.
(I) Installation or upgrading of renewable energy
generation and heating systems, including solar,
photovoltaic, wind, biomass (including wood pellet),
or geothermal systems, or components of such systems.
(J) Other modernization, renovation, or repair
projects that are primarily for instruction, research,
or student housing.
(2) GREEN SCHOOL REQUIREMENT- An institution of higher
education receiving a subgrant under this section shall use
not less than 25 percent of such subgrant to carry out
projects for modernization, renovation, or repair that are
certified, verified, or consistent with the applicable
provisions of--
(A) the LEED Green Building Rating System;
(B) Energy Star;
(C) the CHPS Criteria;
(D) Green Globes; or
(E) an equivalent program adopted by the State or the
State higher education agency.
(3) PROHIBITED USES OF FUNDS- No funds awarded under this
section may be used for--
(A) the maintenance of systems, equipment, or
facilities, including maintenance associated with any
permissible uses of funds described in paragraph (1);
(B) 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;
(C) modernization, renovation, or repair of facilities--
(i) used for sectarian instruction, religious
worship, or a school or department of divinity; or
(ii) in which a substantial portion of the
functions of the facilities are subsumed in a
religious mission; or
(D) construction of new facilities.
(4) USE IT OR LOSE IT REQUIREMENTS-
(A) DEADLINE FOR BINDING COMMITMENTS- Each institution
of higher education receiving a subgrant under this
section shall enter into contracts or other binding
commitments not later than 1 year after the date of
the enactment of this Act (or not later than 9 months
after the subgrant is awarded, if later) to make use
of 50 percent of the funds awarded, and shall enter
into contracts or other binding commitments not later
than 2 years after the date of the enactment of this
Act (or not later than 21 months after the subgrant is
awarded, if later) to make use of the remaining funds.
In the case of activities to be carried out directly
by an institution of higher education receiving such a
subgrant (rather than by contracts, subgrants, or
other arrangements with third parties), a
certification by the institution specifying the
amounts, planned timing, and purpose of such
expenditures shall be deemed a binding commitment for
purposes of this section.
(B) REDISTRIBUTION OF UNCOMMITTED FUNDS- A State
higher education agency shall recover or deobligate
any subgrant funds not committed in accordance with
subparagraph (A), and redistribute such funds to other
institutions of higher education that are--
(i) eligible for subgrants under this section; and
(ii) able to make use of such funds in a timely
manner (including binding commitments within 120
days after the reallocation).
(e) Application of GEPA- The grant program authorized in this
section is an applicable program (as that term is defined in
section 400 of the General Education Provisions Act (20 U.S.C.
1221)) subject to section 439 of such Act (20 U.S.C. 1232b). The
Secretary shall, notwithstanding section 437 of such Act (20
U.S.C. 1232) and section 553 of title 5, United States Code,
establish such program rules as may be necessary to implement such
grant program by notice in the Federal Register.
(f) Reporting-
(1) REPORTS BY INSTITUTIONS- Not later than September 30,
2011, each institution of higher education receiving a
subgrant under this section shall submit to the State higher
education agency awarding such subgrant a report describing
the projects for which such subgrant was received, including--
(A) a description of each project carried out, or
planned to be carried out, with such subgrant,
including the types of modernization, renovation, and
repair to be completed by each such project;
(B) the total amount of funds received by the
institution under this section and the amount of such
funds expended, as of the date of the report, on the
such projects;
(C) the actual or planned cost of each such project
and any demonstrable or expected academic, energy, or
environmental benefits resulting from such project; and
(D) the total number of contracts, and amount of
funding for such contracts, awarded by the institution
to carry out such projects, as of the date of such
report, including the number of contracts, and amount
of funding for such contracts, awarded to local,
small, minority-owned, women-owned, and veteran-owned
businesses, as such terms are defined by the Small
Business Act.
(2) REPORTS BY STATES- Not later than December 31, 2011,
each State higher education agency receiving a grant under
this section shall submit to the Secretary a report
containing a compilation of all of the reports under
paragraph (1) submitted to the agency by institutions of
higher education.
(3) REPORTS BY THE SECRETARY- Not later than March 31, 2012,
the Secretary shall submit to the Committee on Education and
Labor in the House of Representatives and the Committee on
Health, Education, Labor, and Pensions in the Senate and
Committees on Appropriations of the House of Representatives
and the Senate a report on grants and subgrants made under
this section, including the information described in
paragraph (1).
(g) Definitions- In this section:
(1) CHPS CRITERIA- The term `CHPS Criteria' means the green
building rating program developed by the Collaborative for
High Performance Schools.
(2) ENERGY STAR- The term `Energy Star' means the Energy
Star program of the United States Department of Energy and
the United States Environmental Protection Agency.
(3) GREEN GLOBES- The term `Green Globes' means the Green
Building Initiative environmental design and rating system
referred to as Green Globes.
(4) INSTITUTION OF HIGHER EDUCATION- The term `institution
of higher education' has the meaning given such term in
section 101 of the Higher Education Act of 1965.
(5) LEED GREEN BUILDING RATING SYSTEM- The term `LEED Green
Building Rating System' means the United States Green
Building Council Leadership in Energy and Environmental
Design green building rating standard referred to as the
LEED Green Building Rating System.
(6) SECRETARY- The term `Secretary' means the Secretary of
Education.
(7) STATE- The term `State' has the meaning given such term
in section 103 of the Higher Education Act of 1965 (20
U.S.C. 1003).
(8) STATE HIGHER EDUCATION AGENCY- The term `State higher
education agency' has the meaning given such term in section
103 of the Higher Education Act of 1965 (20 U.S.C. 1003).
SEC. 9303. MANDATORY PELL GRANTS.
Section 401(b)(9)(A) of the Higher Education Act of 1965 (20
U.S.C. 1070a(b)(9)(A)) is amended--
(1) in clause (ii), by striking `$2,090,000,000' and
inserting `$2,733,000,000'; and
(2) in clause (iii), by striking `$3,030,000,000' and
inserting `$3,861,000,000'.
SEC. 9304. INCREASE STUDENT LOAN LIMITS.
(a) Amendments- Section 428H(d) of the Higher Education Act of
1965 (20 U.S.C. 1078-8(d)) is amended--
(1) in paragraph (3)--
(A) in subparagraph (A), by striking `$2,000' and
inserting `$4,000'; and
(B) in subparagraph (B), by striking `$31,000' and
inserting `$39,000'; and
(2) in paragraph (4)--
(A) in subparagraph (A)--
(i) in clause (i)(I) and clause (iii)(I), by
striking `$6,000' each place it appears and
inserting `$8,000'; and
(ii) in clause (ii)(I) and clause (iii)(II), by
striking `$7,000' each place it appears and
inserting `$9,000'; and
(B) in subparagraph (B), by striking `$57,500' and
inserting `$65,500'.
(b) Effective Date- The amendments made by this section shall be
effective for loans first disbursed on or after January 1, 2009.
SEC. 9305. STUDENT LENDER SPECIAL ALLOWANCE.
(a) Temporary Calculation Rule- Section 438(b)(2)(I) of the Higher
Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(I)) is amended by
adding at the end the following new clause:
`(vii) TEMPORARY CALCULATION RULE DURING
UNSTABLE COMMERCIAL PAPER MARKETS-
`(I) CALCULATION BASED ON LIBOR- For the
calendar quarter beginning on October 1,
2008, and ending on December 31, 2008, in
computing the special allowance paid
pursuant to this subsection with respect
to loans for which the first disbursement
is made on or after January 1, 2000,
clause (i)(I) of this subparagraph shall
be applied by substituting `the rate that
is the average rate of the 3-month London
Inter Bank Offered Rate (LIBOR) for United
States dollars in effect for each of the
days in such quarter as compiled and
released by the British Bankers
Association, minus 0.13 percent,' for `the
average of the bond equivalent rates of
the quotes of the 3-month commercial paper
(financial) rates in effect for each of
the days in such quarter as reported by
the Federal Reserve in Publication H-15
(or its successor) for such 3-month period'.
`(II) PARTICIPATION INTERESTS-
Notwithstanding subclause (I) of this
clause, the special allowance paid on any
loan held by a lender that has sold
participation interests in such loan to
the Secretary shall be the rate computed
under this subparagraph without regard to
subclause (I) of this clause, unless the
lender agrees that the participant's yield
with respect to such participation
interest is to be calculated in accordance
with subclause (I) of this clause.'.
(b) Conforming Amendments- Section 438(b)(2)(I) of the Higher
Education Act of 1965 (20 U.S.C. 1087-1(b)(2)(I)) is further amended--
(1) in clause (i)(II), by striking `such average bond
equivalent rate' and inserting `the rate determined under
subclause (I)'; and
(2) in clause (v)(III), by striking `(iv), and (vi)' and
inserting `(iv), (vi), and (vii)'.
Subtitle D--Related Agencies
Corporation for National and Community Service
operating expenses
For an additional amount for `Operating Expenses' to carry out the
Domestic Volunteer Service Act of 1973 and the National and
Community Service Act of 1990 (`1990 Act'), $160,000,000, which
shall be used to expand existing AmeriCorps grants: /Provided/,
That funds made available under this heading may be used to
provide adjustments to awards made prior to September 30, 2010 in
order to waive the match requirement authorized in section
121(e)(4) of part I of subtitle C of the 1990 Act, if the Chief
Executive Officer of the Corporation for National and Community
Service (`CEO') determines that the grantee has reduced capacity
to meet this requirement: /Provided further/, That in addition to
requirements identified herein, funds provided under this heading
shall be subject to the terms and conditions under which funds are
appropriated in fiscal year 2009: /Provided further/, That the CEO
shall provide the Committees on Appropriations of the House of
Representatives and the Senate a fiscal year 2009 operating plan
for the funds appropriated under this heading prior to making any
Federal obligations of such funds in fiscal year 2009, but not
later than 90 days after the date of enactment of this Act, and a
fiscal year 2010 operating plan for such funds prior to making any
Federal obligations of such funds in fiscal year 2010, but not
later than November 1, 2009, that detail the allocation of
resources and the increased number of volunteers supported by the
AmeriCorps programs: /Provided further/, That the CEO shall
provide to the Committees on Appropriations of the House of
Representatives and the Senate a report on the actual obligations,
expenditures, and unobligated balances for each activity funded
under this heading not later than November 1, 2009, and every 6
months thereafter as long as funding provided under this heading
is available for obligation or expenditure.
National Service Trust
(including transfer of funds)
For an additional amount for `National Service Trust' established
under subtitle D of title I of the National and Community Service
Act of 1990 (`1990 Act'), $40,000,000, which shall remain
available until expended: /Provided/, That the Corporation for
National and Community Service may transfer additional funds from
the amount provided within `Operating Expenses' for grants made
under subtitle C of the 1990 Act to this appropriation upon
determination that such transfer is necessary to support the
activities of national service participants and after notice is
transmitted to the Committees on Appropriations of the House of
Representatives and the Senate: /Provided further/, That the
amount appropriated for or transferred to the National Service
Trust may be invested under section 145(b) of the 1990 Act without
regard to the requirement to apportion funds under 31 U.S.C. 1513(b).
Social Security Administration
limitation on administrative expenses
(including transfer of funds)
For an additional amount for `Limitation on Administrative
Expenses', $900,000,000, which shall be used as follows:
(1) $400,000,000 for the construction and associated costs
to establish a new National Computer Center, which may
include lease or purchase of real property: /Provided/, That
the construction plan and site selection for such center
shall be subject to review and approval by the Office of
Management and Budget: /Provided further/, That the
Committees on Appropriations of the House of Representatives
and the Senate shall be notified 15 days in advance of the
lease or purchase of such site: /Provided further/, That
such center shall continue to be a government-operated facility.
(2) $500,000,000 for processing disability and retirement
workloads: /Provided/, That up to $40,000,000 may be used by
the Commissioner of Social Security for health information
technology research and activities to facilitate the
adoption of electronic medical records in disability claims,
including the transfer of funds to `Supplemental Security
Income Program' to carry out activities under section 1110
of the Social Security Act.
TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS
DEPARTMENT OF DEFENSE
Military Construction, Army
For an additional amount for `Military Construction, Army',
$920,000,000: /Provided/, That notwithstanding any other provision
of law, such funds may be obligated and expended to carry out
planning and design and military construction projects in the
United States not otherwise authorized by law: /Provided further/,
That of the amount provided under this heading, $600,000,000 shall
be for training and recruit troop housing, $220,000,000 shall be
for permanent party troop housing, and $100,000,000 shall be for
child development centers: /Provided further/, That not later than
30 days after the date of enactment of this Act, the Secretary of
Defense shall submit to the Committees on Appropriations of the
House of Representatives and the Senate an expenditure plan for
funds provided under this heading.
Military Construction, Navy and Marine Corps
For an additional amount for `Military Construction, Navy and
Marine Corps', $350,000,000: /Provided/, That notwithstanding any
other provision of law, such funds may be obligated and expended
to carry out planning and design and military construction
projects in the United States not otherwise authorized by law:
/Provided further/, That of the amount provided under this
heading, $170,000,000 shall be for sailor and marine housing and
$180,000,000 shall be for child development centers: /Provided
further/, That not later than 30 days after the date of enactment
of this Act, the Secretary of Defense shall submit to the
Committees on Appropriations of the House of Representatives and
the Senate an expenditure plan for funds provided under this heading.
Military Construction, Air Force
For an additional amount for `Military Construction, Air Force',
$280,000,000: /Provided/, That notwithstanding any other provision
of law, such funds may be obligated and expended to carry out
planning and design and military construction projects in the
United States not otherwise authorized by law: /Provided further/,
That of the amount provided under this heading, $200,000,000 shall
be for airmen housing and $80,000,000 shall be for child
development centers: /Provided further/, That not later than 30
days after the date of enactment of this Act, the Secretary of
Defense shall submit to the Committees on Appropriations of the
House of Representatives and the Senate an expenditure plan for
funds provided under this heading.
Military Construction, Defense-Wide
For an additional amount for `Military Construction,
Defense-Wide', $3,750,000,000, for the construction of hospitals
and ambulatory surgery centers: /Provided/, That notwithstanding
any other provision of law, such funds may be obligated and
expended to carry out planning and design and military
construction projects in the United States not otherwise
authorized by law: /Provided further/, That not later than 30 days
after the date of enactment of this Act, the Secretary of Defense
shall submit to the Committees on Appropriations of the House of
Representatives and the Senate an expenditure plan for funds
provided under this heading.
Military Construction, Army National Guard
For an additional amount for `Military Construction, Army National
Guard', $140,000,000: /Provided/, That notwithstanding any other
provision of law, such funds may be obligated and expended to
carry out planning and design and military construction projects
in the United States not otherwise authorized by law: /Provided
further/, That not later than 30 days after the date of enactment
of this Act, the Secretary of Defense shall submit to the
Committees on Appropriations of the House of Representatives and
the Senate an expenditure plan for funds provided under this heading.
Military Construction, Air National Guard
For an additional amount for `Military Construction, Air National
Guard', $70,000,000: /Provided/, That notwithstanding any other
provision of law, such funds may be obligated and expended to
carry out planning and design and military construction projects
in the United States not otherwise authorized by law: /Provided
further/, That not later than 30 days after the date of enactment
of this Act, the Secretary of Defense shall submit to the
Committees on Appropriations of the House of Representatives and
the Senate an expenditure plan for funds provided under this heading.
Military Construction, Army Reserve
For an additional amount for `Military Construction, Army
Reserve', $100,000,000: /Provided/, That notwithstanding any other
provision of law, such funds may be obligated and expended to
carry out planning and design and military construction projects
in the United States not otherwise authorized by law: /Provided
further/, That not later than 30 days after the date of enactment
of this Act, the Secretary of Defense shall submit to the
Committees on Appropriations of the House of Representatives and
the Senate an expenditure plan for funds provided under this heading.
Military Construction, Navy Reserve
For an additional amount for `Military Construction, Navy
Reserve', $30,000,000: /Provided/, That notwithstanding any other
provision of law, such funds may be obligated and expended to
carry out planning and design and military construction projects
in the United States not otherwise authorized by law: /Provided
further/, That not later than 30 days after the date of enactment
of this Act, the Secretary of Defense shall submit to the
Committees on Appropriations of the House of Representatives and
the Senate an expenditure plan for funds provided under this heading.
Military Construction, Air Force Reserve
For an additional amount for `Military Construction, Air Force
Reserve', $60,000,000: /Provided/, That notwithstanding any other
provision of law, such funds may be obligated and expended to
carry out planning and design and military construction projects
in the United States not otherwise authorized by law: /Provided
further/, That not later than 30 days after the date of enactment
of this Act, the Secretary of Defense shall submit to the
Committees on Appropriations of the House of Representatives and
the Senate an expenditure plan for funds provided under this heading.
Department of Defense Base Closure Account 1990
For an additional amount to be deposited into the Department of
Defense Base Closure Account 1990, established by section
2906(a)(1) of the Defense Base Closure and Realignment Act of 1990
(10 U.S.C. 2687 note), $300,000,000: /Provided/, That not later
than 30 days after the date of enactment of this Act, the
Secretary of Defense shall submit to the Committees on
Appropriations of the House of Representatives and the Senate an
expenditure plan for funds provided under this heading.
DEPARTMENT OF VETERANS AFFAIRS
Veterans Health Administration
medical facilities
For an additional amount for `Medical Facilities' for
non-recurring maintenance, including energy projects,
$950,000,000: /Provided/, That not later than 30 days after the
date of enactment of this Act, the Secretary of Veterans Affairs
shall submit to the Committees on Appropriations of the House of
Representatives and the Senate an expenditure plan for funds
provided under this heading.
National Cemetery Administration
For an additional amount for `National Cemetery Administration'
for monument and memorial repairs, $50,000,000: /Provided/, That
not later than 30 days after the date of enactment of this Act,
the Secretary of Veterans Affairs shall submit to the Committees
on Appropriations of the House of Representatives and the Senate
an expenditure plan for funds provided under this heading.
TITLE XI--DEPARTMENT OF STATE
DEPARTMENT OF STATE
Administration of Foreign Affairs
capital investment fund
For an additional amount for `Capital Investment Fund',
$276,000,000, of which up to $120,000,000 shall be available for
the design and construction of a backup information management
facility in the United States to support mission-critical
operations and projects, and up to $98,527,000 shall be available
to carry out the Department of State's responsibilities under the
Comprehensive National Cybersecurity Initiative: /Provided/, That
the Secretary of State shall submit to the Committees on
Appropriations of the House of Representatives and the Senate
within 90 days of enactment of this Act a detailed spending plan
for funds appropriated under this heading.
International Commissions
international boundary and water commission, united states and mexico
construction
(including transfer of funds)
For an additional amount for `Construction' for the water quantity
program to meet immediate repair and rehabilitation requirements,
$224,000,000: /Provided/, That up to $2,000,000 may be transferred
to, and merged with, funds available under the heading
`International Boundary and Water Commission, United States and
Mexico--Salaries and Expenses', and such amount shall be in lieu
of amounts available under section 1106 of this Act: /Provided/,
That the Secretary of State shall submit to the Committees on
Appropriations of the House of Representatives and the Senate
within 90 days of enactment of this Act a detailed spending plan
for funds appropriated under this heading.
TITLE XII--TRANSPORTATION, AND HOUSING AND URBAN DEVELOPMENT
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
grants-in-aid for airports
For an additional amount for `Grants-in-Aid for Airports', to
enable the Secretary of Transportation to make grants for
discretionary projects as authorized by subchapter I of chapter
471 and subchapter I of chapter 475 of title 49, United States
Code, $3,000,000,000: /Provided/, That such funds shall not be
subject to apportionment formulas, special apportionment
categories, or minimum percentages under chapter 471: /Provided
further/, That the conditions, certifications, and assurances
required for grants under subchapter I of chapter 471 of such
title apply: /Provided further,/ That for purposes of applying
section 1104 of this Act to this appropriation, the deadline for
grantees to enter into contracts or other binding commitments to
make use of not less than 50 percent of the funds awarded shall be
90 days after award of the grant.
Federal Highway Administration
highway infrastructure investment
For projects and activities eligible under section 133 of title
23, United States Code, section 144 of such title (without regard
to subsection (g)), and sections 103, 119, 134, 148, and 149 of
such title, $30,000,000,000, of which $300,000,000 shall be for
Indian reservation roads under section 204 of such title;
$250,000,000 shall be for park roads and parkways under section
204 of such title; $20,000,000 shall be for highway surface
transportation and technology training under section 140(b) of
such title; and $20,000,000 shall be for disadvantaged business
enterprises bonding assistance under section 332(e) of title 49,
United States Code: /Provided/, That the amount set aside from
this appropriation pursuant to section 1106 of this Act shall not
be more than 0.2 percent of the funds made available under this
heading instead of the percentage specified in such section:
/Provided/ /further/, That, after making the set-asides authorized
by the previous provisos, the funds made available under this
heading shall be distributed among the States, and Puerto Rico,
American Samoa, Guam, the Virgin Islands, and the Commonwealth of
the Northern Mariana Islands, in the same ratio as the obligation
limitation for fiscal year 2008 was distributed among the States
in accordance with the formula specified in section 120(a)(6) of
division K of Public Law 110-161, but, in the case of the Puerto
Rico Highway Program and the Territorial Highway Program, under
section 120(a)(5) of such division: /Provided further/, That 45
percent of the funds distributed to a State under this heading
shall be suballocated within the State in the manner and for the
purposes described in section 133(d) of title 23, United States
Code, (without regard to the comparison to fiscal year 2005 in
paragraph (2)): /Provided further/, That in selecting projects to
be funded, recipients shall give priority to projects that can
award contracts within 90 days of enactment of this Act, are
included in an approved Statewide Transportation Improvement
Program (STIP) and/or Metropolitan Transportation Improvement
Program (TIP), are projected for completion within a three-year
time frame, and are located in economically distressed areas as
defined by section 301 of the Public Works and Economic
Development Act of 1965, as amended (42 U.S.C. 3161): /Provided
further/, That funds made available under this heading shall be
administered as if apportioned under chapter 1 of title 23, United
States Code, except for funds made available for Indian
reservation roads and park roads and parkways which shall be
administered in accordance with chapter 2 of title 23, United
States Code: /Provided further/, That the Federal share payable on
account of any project or activity carried out with funds made
available under this heading shall, at the option of the
recipient, be up to 100 percent of the total cost thereof:
/Provided further/, That funds made available by this Act shall
not be obligated for the purposes authorized under section 115(b)
of title 23, United States Code: /Provided further/, That the
provisions of section 1101(b) of Public Law 109-59 shall apply to
funds made available under this heading: /Provided further/, That,
in lieu of the redistribution required by section 1104(b) of this
Act, if less than 50 percent of the funds made available to each
State and territory under this heading are obligated within 90
days after the date of distribution of those funds to the States
and territories, then the portion of the 50 percent of the total
funding distributed to the State or territory that has not been
obligated shall be redistributed, in the manner described in
section 120(c) of division K of Public Law 110-161, to those
States and territories that have obligated at least 50 percent of
the funds made available under this heading and are able to
obligate amounts in addition to those previously distributed,
except that, for those funds suballocated within the State, if
less than 50 percent of the funds so suballocated within the State
are obligated within 75 days of suballocation, then the portion of
the 50 percent of funding so suballocated that has not been
obligated will be returned to the State for use anywhere in the
State prior to being redistributed in accordance with the first
part of this proviso: /Provided further/, That, in lieu of the
redistribution required by section 1104(b) of this Act, any funds
made available under this heading that are not obligated by August
1, 2010, shall be redistributed, in the manner described in
section 120(c) of division K of Public Law 110-161, to those
States able to obligate amounts in addition to those previously
distributed, except that funds suballocated within the State that
are not obligated by June 1, 2010, will be returned to the State
for use anywhere in the State prior to being redistributed in
accordance with the first part of this proviso: / Provided
further/, That notwithstanding section 1103 of this Act, funds
made available under this heading shall be apportioned not later
than 7 days after the date of enactment of this Act.
Federal Railroad Administration
capital assistance for intercity passenger rail service
For an additional amount for `Capital Assistance for Intercity
Passenger Rail Service' to enable the Secretary of Transportation
to make grants for capital costs as authorized by chapter 244 of
title 49 United States Code, $300,000,000: /Provided/, That
notwithstanding section 1103 of this Act, the Secretary shall give
preference to projects for the repair, rehabilitation, upgrade, or
purchase of railroad assets or infrastructure that can be awarded
within 90 days of enactment of this Act: /Provided further/, That
in awarding grants for the acquisition of a piece of rolling stock
or locomotive, the Secretary shall give preference to
FRA-compliant rolling stock and locomotives: /Provided further/,
That the Secretary shall give preference to projects that support
the development of intercity high speed rail service: /Provided
further/, That the Federal share shall be, at the option of the
recipient, up to 100 percent.
capital and debt service grants to the national railroad passenger
corporation
For an additional amount for `Capital and Debt Service Grants to
the National Railroad Passenger Corporation' (Amtrak) to enable
the Secretary of Transportation to make capital grants to Amtrak
as authorized by section 101(c) of the Passenger Rail Investment
and Improvement Act of 2008 (Public Law 110-432), $800,000,000:
/Provided/, That priority shall be given to projects for the
repair, rehabilitation, or upgrade of railroad assets or
infrastructure: /Provided further/, That none of the funds under
this heading shall be used to subsidize the operating losses of
Amtrak: /Provided further/, Notwithstanding section 1103 of this
Act, funds made available under this heading shall be awarded not
later than 7 days after the date of enactment of this Act.
Federal Transit Administration
transit capital assistance
For transit capital assistance grants, $6,000,000,000 (increased
by $1,500,000,000), of which $5,400,000,000 (increased by
$1,350,000,000) shall be for grants under section 5307 of title
49, United States Code and shall be apportioned in accordance with
section 5336 of such title (other than subsections (i)(1) and (j))
but may not be combined or commingled with any other funds
apportioned under such section 5336, and of which $600,000,000
(increased by $150,000,000) shall be for grants under section 5311
of such title and shall be apportioned in accordance with such
section 5311 but may not be combined or commingled with any other
funds apportioned under that section: /Provided/, That of the
funds provided for section 5311 under this heading, 3 percent
shall be made available for section 5311(c)(1): /Provided
further/, That applicable chapter 53 requirements shall apply
except that the Federal share of the costs for which a grant is
made under this heading shall be, at the option of the recipient,
up to 100 percent: / Provided further/, In lieu of the
requirements of section 1103 of this Act, funds made available
under this heading shall be apportioned not later than 7 days
after the date of enactment of this Act: /Provided further/, That
for purposes of applying section 1104 of this Act to this
appropriation, the deadline for grantees to enter into obligations
to make use of not less than 50 percent of the funds awarded shall
be 90 days after apportionment: /Provided further,/ That the
provisions of section 1101(b) of Public Law 109-59 shall apply to
funds made available under this heading: /Provided further/, That
notwithstanding any other provision of law, of the funds
apportioned in accordance with section 5336, up to three-quarters
of 1 percent shall be available for administrative expenses and
program management oversight and of the funds apportioned in
accordance with section 5311, up to one-half of 1 percent shall be
available for administrative expenses and program management
oversight and both amounts shall remain available for obligation
until September 30, 2012: /Provided further/, That the preceding
proviso shall apply in lieu of the provisions in section 1106 of
this Act.
fixed guideway infrastructure investment
For an amount for capital expenditures authorized under section
5309(b)(2) of title 49, United States Code, $2,000,000,000:
/Provided/, That the Secretary of Transportation shall apportion
funds under this heading pursuant to the formula set forth in
section 5337 of title 49, United States Code: /Provided further/,
That the funds appropriated under this heading shall not be
commingled with funds available under the Formula and Bus Grants
account: / Provided further/, In lieu of the requirements of
section 1103 of this Act, funds made available under this heading
shall be apportioned not later than 7 days after the date of
enactment of this Act: /Provided further/, That for purposes of
applying section 1104 of this Act to this appropriation, the
deadline for grantees to enter into obligations to make use of not
less than 50 percent of the funds awarded shall be 90 days after
apportionment: /Provided further/, That applicable chapter 53
requirements shall apply except that the Federal share of the
costs for which a grant is made under this heading shall be, at
the option of the recipient, up to 100 percent: /Provided
further/, That the provisions of section 1101(b) of Public Law
109-59 shall apply to funds made available under this heading:
/Provided further/, That notwithstanding any other provision of
law, up to 1 percent of the funds under this heading shall be
available for administrative expenses and program management
oversight and shall remain available for obligation until
September 30, 2012: /Provided further/, That the preceding proviso
shall apply in lieu of the provisions in section 1106 of this Act.
capital investment grants
For an additional amount for `Capital Investment Grants', as
authorized under section 5338(c)(4) of title 49, United States
Code, and allocated under section 5309(m)(2)(A) of such title, to
enable the Secretary of Transportation to make discretionary
grants as authorized by section 5309(d) and (e) of such title,
$1,000,000,000 (increased by $1,500,000,000): /Provided/, That
such amount shall be allocated without regard to the limitation
under section 5309(m)(2)(A)(i): /Provided further/, That in
selecting projects to be funded, priority shall be given to
projects that are currently in construction or are able to award
contracts based on bids within 90 days of enactment of this Act:
/Provided further/, That for purposes of applying section 1104 of
this Act to this appropriation, the deadline for grantees to enter
into contracts or other binding commitments to make use of not
less than 50 percent of the funds awarded shall be 90 days after
award: /Provided further/, That the provisions of section 1101(b)
of Public Law 109-59 shall apply to funds made available under
this heading: /Provided further/, That applicable chapter 53
requirements shall apply, except that notwithstanding any other
provision of law, up to 1 percent of the funds under this heading
shall be available for administrative expenses and program
management oversight and shall remain available for obligation
until September 30, 2012: /Provided further/, That the preceding
proviso shall apply in lieu of the provisions in section 1106 of
this Act.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Public and Indian Housing
public housing capital fund
For an additional amount for `Public Housing Capital Fund' to
carry out capital and management activities for public housing
agencies, as authorized under section 9 of the United States
Housing Act of 1937 (42 U.S.C. 1437g) (`the Act'), $5,000,000,000:
/Provided/, That the Secretary of Housing and Urban Development
shall distribute at least $4,000,000,000 of this amount by the
same formula used for amounts made available in fiscal year 2008:
/Provided further/, That public housing authorities shall give
priority to capital projects that can award contracts based on
bids within 120 days from the date the funds are made available to
the public housing authorities: /Provided further/, That public
housing agencies shall give priority consideration to the
rehabilitation of vacant rental units: /Provided further/, That
notwithstanding any other provision of the Act or regulations: (1)
funding provided herein may not be used for Operating Fund
activities pursuant to section 9(g) of the Act; and (2) any
restriction of funding to replacement housing uses shall be
inapplicable: /Provided further/, That public housing agencies
shall prioritize capital projects underway or already in their
5-year plans: /Provided further/, That of the amount provided
under this heading, the Secretary may obligate up to
$1,000,000,000, for competitive grants to public housing
authorities for activities including: (1) investments that
leverage private sector funding or financing for housing
renovations and energy conservation retrofit investments; (2)
rehabilitation of units using sustainable materials and methods
that improve energy efficiency, reduce energy costs, or preserve
and improve units with good access to public transportation or
employment centers; (3) increase the availability of affordable
rental housing by expediting rehabilitation projects to bring
vacant units into use or by filling the capital investment gap for
redevelopment or replacement housing projects which have been
approved or are otherwise ready to proceed but are stalled due to
the inability to obtain anticipated private capital; or (4)
address the needs of seniors and persons with disabilities through
improvements to housing and related facilities which attract or
promote the coordinated delivery of supportive services: /Provided
further/, That the Secretary may waive statutory or regulatory
provisions related to the obligation and expenditure of capital
funds if necessary to facilitate the timely expenditure of funds
(except for requirements related to fair housing,
nondiscrimination, labor standards, and the environment).
elderly, disabled, and section 8 assisted housing energy retrofit
For grants or loans to owners of properties receiving
project-based assistance pursuant to section 202 of the Housing
Act of 1959 (12 U.S.C. 17012), section 811 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
8013), or section 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f), to accomplish energy retrofit investments,
$2,500,000,000: /Provided/, That such loans or grants shall be
provided through the Office of Affordable Housing Preservation of
the Department of Housing and Urban Development, on such terms and
conditions as the Secretary of Housing and Urban Development deems
appropriate: /Provided further/, That eligible owners must have at
least a satisfactory management review rating, be in substantial
compliance with applicable performance standards and legal
requirements, and commit to an additional period of affordability
determined by the Secretary: /Provided further/, That the
Secretary shall undertake appropriate underwriting and oversight
with respect to such transactions: /Provided further/, That the
Secretary may set aside funds made available under this heading
for an efficiency incentive payable upon satisfactory completion
of energy retrofit investments, and may provide additional
incentives if such investments resulted in extraordinary job
creation for low-income and very low-income persons: /Provided
further/, that of the funds provided under this heading, 1 percent
shall be available only for staffing, training, technical
assistance, technology, monitoring, research and evaluation
activities.
native american housing block grants
For an additional amount for `Native American Housing Block
Grants', as authorized under title I of the Native American
Housing Assistance and Self-Determination Act of 1996 (`NAHASDA')
(25 U.S.C. 4111 et seq.), $500,000,000: /Provided/, That
$250,000,000 of the amount appropriated under this heading shall
be distributed according to the same funding formula used in
fiscal year 2008: /Provided further/, That in selecting projects
to be funded, recipients shall give priority to projects that can
award contracts based on bids within 120 days from the date that
funds are available to the recipients: /Provided further/, That in
allocating the funds appropriated under this heading, the
Secretary of Housing and Urban Development shall not require an
additional action plan from grantees: /Provided further/, That the
Secretary may obligate $250,000,000 of the amount appropriated
under this heading for competitive grants to eligible entities
that apply for funds as authorized under NAHASDA: /Provided
further/, That in awarding competitive funds, the Secretary shall
give priority to projects that will spur construction and
rehabilitation and will create employment opportunities for
low-income and unemployed persons.
Community Planning and Development
community development fund
For an additional amount for `Community Development Fund'
$1,000,000,000, to carry out the community development block grant
program under title I of the Housing and Community Development Act
of 1974 (42 U.S.C. 5301 et seq.): /Provided/, That the amount
appropriated in this paragraph shall be distributed according to
the same funding formula used in fiscal year 2008: /Provided
further/, That in allocating the funds appropriated in this
paragraph, the Secretary of Housing and Urban Development shall
not require an additional action plan from grantees: /Provided
further/, That in selecting projects to be funded, recipients
shall give priority to projects that can award contracts based on
bids within 120 days from the date the funds are made available to
the recipients; /Provided further/, That in administering funds
provided in this paragraph, the Secretary may waive any provision
of any statute or regulation that the Secretary administers in
connection with the obligation by the Secretary or the use by the
recipient of these funds (except for requirements related to fair
housing, nondiscrimination, labor standards, and the environment),
upon a finding that such waiver is required to facilitate the
timely use of such funds and would not be inconsistent with the
overall purpose of the statute.
For a further additional amount for `Community Development Fund',
$4,190,000,000, to be used for neighborhood stabilization
activities related to emergency assistance for the redevelopment
of abandoned and foreclosed homes as authorized under division B,
title III of the Housing and Economic Recovery Act of 2008 (Public
Law 110-289), of which--
(1) not less than $3,440,000,000 shall be allocated by a
competition for which eligible entities shall be States,
units of general local government, and nonprofit entities or
consortia of nonprofit entities: /Provided, /That the award
criteria for such competition shall include grantee
capacity, leveraging potential, targeted impact of
foreclosure prevention, and any additional factors
determined by the Secretary of Housing and Urban
Development: /Provided further/, that the Secretary may
establish a minimum grant size: /Provided/ /further/, That
amounts made available under this Section may be used to:
(A) establish financing mechanisms for purchase and
redevelopment of foreclosed-upon homes and residential
properties, including such mechanisms as soft-seconds, loan
loss reserves, and shared-equity loans for low- and
moderate-income homebuyers; (B) purchase and rehabilitate
homes and residential properties that have been abandoned or
foreclosed upon, in order to sell or rent such homes and
properties; (C) establish and operate land banks for homes
that have been foreclosed upon; (D) demolish foreclosed
properties that have become blighted structures; and (E)
redevelop demolished or vacant foreclosed properties in
order to sell or rent such properties; and
(2) up to $750,000,000 shall be awarded by competition to
nonprofit entities or consortia of nonprofit entities to
provide community stabilization assistance by: (A)
accelerating state and local government and nonprofit
productivity; (B) increasing the scale and efficiency of
property transfers of foreclosed and vacant residential
properties from financial institutions and government
entities to qualified local housing providers in order to
return the properties to productive affordable housing use;
(C) building industry and property management capacity; and
(D) partnering with private sector real estate developers
and contractors and leveraging private sector capital:
/Provided further/, That such community stabilization
assistance shall be provided primarily in States and areas
with high rates of defaults and foreclosures to support the
acquisition, rehabilitation and property management of
single-family and multi-family homes and to work in
partnership with the private sector real estate industry and
to leverage available private and public funds for those
purposes: /Provided further/, That for purposes of this
paragraph qualified local housing providers shall be
nonprofit organizations with demonstrated capabilities in
real estate development or acquisition and rehabilitation or
property management of single- or multi-family homes, or
local or state governments or instrumentalities of such
governments: /Provided further/, That qualified local
housing providers shall be expected to utilize and leverage
additional local nonprofit, governmental, for-profit and
private resources:
/Provided further/, That in the case of any foreclosure on any
dwelling or residential real property acquired with any amounts
made available under this heading, any successor in interest in
such property pursuant to the foreclosure shall assume such
interest subject to: (1) the provision by such successor in
interest of a notice to vacate to any bona fide tenant at least 90
days before the effective date of such notice; and (2) the rights
of any bona fide tenant, as of the date of such notice of
foreclosure: (A) under any bona fide lease entered into before the
notice of foreclosure to occupy the premises until the end of the
remaining term of the lease, except that a successor in interest
may terminate a lease effective on the date of sale of the unit to
a purchaser who will occupy the unit as a primary residence,
subject to the receipt by the tenant of the 90-day notice under
this paragraph; or (B) without a lease or with a lease terminable
at will under State law, subject to the receipt by the tenant of
the 90-day notice under this paragraph, except that nothing in
this paragraph shall affect the requirements for termination of
any Federal- or State-subsidized tenancy or of any State or local
law that provides longer time periods or other additional
protections for tenants: /Provided further/, That, for purposes of
this paragraph, a lease or tenancy shall be considered bona fide
only if: (1) the mortgagor under the contract is not the tenant;
(2) the lease or tenancy was the result of an arms-length
transaction; and (3) the lease or tenancy requires the receipt of
rent that is not substantially less than fair market rent for the
property: /Provided further/, That the recipient of any grant or
loan from amounts made available under this heading may not refuse
to lease a dwelling unit in housing assisted with such loan or
grant to a holder of a voucher or certificate of eligibility under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) because of the status of the prospective tenant as such a
holder: /Provided further/, That in the case of any qualified
foreclosed housing for which funds made available under this
heading are used and in which a recipient of assistance under
section 8(o) of the U.S. Housing Act of 1937 resides at the time
of acquisition or financing, the owner and any successor in
interest shall be subject to the lease and to the housing
assistance payments contract for the occupied unit: /Provided
further/, That vacating the property prior to sale shall not
constitute good cause for termination of the tenancy unless the
property is unmarketable while occupied or unless the owner or
subsequent purchaser desires the unit for personal or family use:
/Provided further/, That this paragraph shall not preempt any
State or local law that provides more protection for tenants:
/Provided further/, That amounts made available under this heading
may be used for the costs of demolishing foreclosed housing that
is deteriorated or unsafe: /Provided further/, That the amount for
demolition of such housing may not exceed 10 percent of amounts
allocated under this paragraph to States and units of general
local government: /Provided further/, That no amounts from a grant
made under this paragraph may be used to demolish any public
housing (as such term is defined in section 3 of the United States
Housing Act of 1937 (42 U.S.C. 1437a)): /Provided further/, That
section 2301(d)(4) of the Housing and Economic Recovery Act of
2008 (Public Law 110-289) is repealed.
home investment partnerships program
For an additional amount for `HOME Investment Partnerships
Program' as authorized under Title II of the Cranston-Gonzalez
National Affordable Housing Act (`the Act'), $1,500,000,000:
/Provided/, That the amount appropriated under this heading shall
be distributed according to the same funding formula used in
fiscal year 2008: /Provided further/, That the Secretary of
Housing and Urban Development may waive statutory or regulatory
provisions related to the obligation of such funds if necessary to
facilitate the timely expenditure of funds (except for
requirements related to fair housing, nondiscrimination, labor
standards, and the environment): /Provided further/, That in
selecting projects to be funded, recipients shall give priority to
projects that can award contracts based on bids within 120 days
from the date that funds are available to the recipients.
self-help and assisted homeownership opportunity program
For an additional amount for `Self-Help and Assisted Homeownership
Opportunity Program', as authorized under section 11 of the
Housing Opportunity Program Extension Act of 1996, $10,000,000:
/Provided/, That in awarding competitive grant funds, the
Secretary of Housing and Urban Development shall give priority to
the provision and rehabilitation of sustainable, affordable single
and multifamily units in low-income, high-need rural areas:
/Provided further/, That in selecting projects to be funded,
grantees shall give priority to projects that can award contracts
based on bids within 120 days from the date the funds are made
available to the grantee.
homeless assistance grants
For an additional amount for `Homeless Assistance Grants', for the
emergency shelter grants program as authorized under subtitle B of
tile IV of the McKinney-Vento Homeless Assistance Act,
$1,500,000,000: /Provided/, That in addition to homeless
prevention activities specified in the emergency shelter grant
program, funds provided under this heading may be used for the
provision of short-term or medium-term rental assistance; housing
relocation and stabilization services including housing search,
mediation or outreach to property owners, legal services, credit
repair, resolution of security or utility deposits, utility
payments, rental assistance for a final month at a location, and
moving costs assistance; or other appropriate homelessness
prevention activities;/ Provided further/, That these funds shall
be allocated pursuant to the formula authorized by section 413 of
such Act: /Provided further/, That the Secretary of Housing and
Urban Development may waive statutory or regulatory provisions
related to the obligation and use of emergency shelter grant funds
necessary to facilitate the timely expenditure of funds.
Office of Healthy Homes and Lead Hazard Control
lead hazard reduction
For an additional amount for `Lead Hazard Reduction', for the Lead
Hazard Reduction Program as authorized by section 1011 of the
Residential Lead-Based Paint Hazard Reduction Act of 1992,
$100,000,000: /Provided/, That for purposes of environmental
review, pursuant to the National Environmental Policy Act of 1969
(42 U.S.C. 4321 et seq.) and other provisions of law that further
the purposes of such Act, a grant under the Healthy Homes
Initiative, Operation Lead Elimination Action Plan (LEAP), or the
Lead Technical Studies program under this heading or under prior
appropriations Acts for such purposes under this heading, shall be
considered to be funds for a special project for purposes of
section 305(e) of the Multifamily Housing Property Disposition
Reform Act of 1994: /Provided further/, That of the total amount
made available under this heading, $30,000,000 shall be made
available on a competitive basis for areas with the highest lead
paint abatement needs.
GENERAL PROVISIONS, THIS TITLE
SEC. 12001. MAINTENANCE OF EFFORT AND REPORTING REQUIREMENTS TO
ENSURE TRANSPARENCY AND ACCOUNTABILITY.
(a) Maintenance of Effort- Not later than 30 days after the date
of enactment of this Act, for each amount that is distributed to a
State or agency thereof from an appropriation in this Act for a
covered program, the Governor of the State shall certify that the
State will maintain its effort with regard to State funding for
the types of projects that are funded by the appropriation. As
part of this certification, the Governor shall submit to the
covered agency a statement identifying the amount of funds the
State planned to expend as of October 1, 2008, from non-Federal
sources in the period beginning on the date of enactment of this
Act through September 30, 2010, for the types of projects that are
funded by the appropriation.
(b) Failure to Maintain Effort- If a Governor is unable to certify
that Federal funds will not supplant non-Federal funds pursuant to
subsection (a), then the Federal funds apportioned to that State
under this Act that will supplant non-Federal funds will be
recaptured by the appropriate Federal agency and redistributed to
States or agencies that can spend the Federal funds without
supplanting non-Federal funds.
(c) Periodic Reports-
(1) IN GENERAL- Notwithstanding any other provision of law,
each grant recipient shall submit to the covered agency from
which they received funding periodic reports on the use of
the funds appropriated in this Act for covered programs.
Such reports shall be collected and compiled by the covered
agency and transmitted to Congress.
(2) CONTENTS OF REPORTS- For amounts received under each
covered program by a grant recipient under this Act, the
grant recipient shall include in the periodic reports
information tracking--
(A) the amount of Federal funds appropriated,
allocated, obligated, and outlayed under the
appropriation;
(B) the number of projects that have been put out to
bid under the appropriation and the amount of Federal
funds associated with such projects;
(C) the number of projects for which contracts have
been awarded under the appropriation and the amount of
Federal funds associated with such contracts;
(D) the number of projects for which work has begun
under such contracts and the amount of Federal funds
associated with such contracts;
(E) the number of projects for which work has been
completed under such contracts and the amount of
Federal funds associated with such contracts;
(F) the number of jobs created or sustained by the
Federal funds provided for projects under the
appropriation, including information on job sectors
and pay levels; and
(G) for each covered program report information
tracking the actual aggregate expenditures by each
grant recipient from non-Federal sources for projects
eligible for funding under the program during the
period beginning on the date of enactment of this Act
through September 30, 2010, as compared to the level
of such expenditures that were planned to occur during
such period as of the date of enactment of this Act.
(3) TIMING OF REPORTS- Each grant recipient shall submit the
first of the periodic reports required under this subsection
not later than 30 days after the date of enactment of this
Act and shall submit updated reports not later than 60 days,
120 days, 180 days, 1 year, and 3 years after such date of
enactment.
(d) Definitions- In this section, the following definitions apply:
(1) COVERED AGENCY- The term `covered agency' means the
Federal Aviation Administration, the Federal Highway
Administration, the Federal Railroad Administration, and the
Federal Transit Administration of the Department of
Transportation.
(2) COVERED PROGRAM- The term `covered program' means funds
appropriated in this Act for `Grants-in-Aid for Airports' to
the Federal Aviation Administration; for `Highway
Infrastructure Investment' to the Federal Highway
Administration; for `Capital Assistance for Intercity
Passenger Rail Service' to the Federal Railroad
Administration; for `Transit Capital Assistance', `Fixed
Guideway Infrastructure Investment', and `Capital Investment
Grants' to the Federal Transit Administration.
(3) GRANT RECIPIENT- The term `grant recipient' means a
State or other recipient of assistance provided under a
covered program in this Act. Such term does not include a
Federal department or agency.
SEC. 12002. FHA LOAN LIMITS FOR 2009.
(a) Loan Limit Floor Based on 2008 Levels- For mortgages for which
the mortgagee issues credit approval for the borrower during
calendar year 2009, if the dollar amount limitation on the
principal obligation of a mortgage determined under section
203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) for
any size residence for any area is less than such dollar amount
limitation that was in effect for such size residence for such
area for 2008 pursuant to section 202 of the Economic Stimulus Act
of 2008 (Public Law 110-185; 122 Stat. 620), notwithstanding any
other provision of law, the maximum dollar amount limitation on
the principal obligation of a mortgage for such size residence for
such area for purposes of such section 203(b)(2) shall be
considered (except for purposes of section 255(g) of such Act (12
U.S.C. 1715z-20(g))) to be such dollar amount limitation in effect
for such size residence for such area for 2008.
(b) Discretionary Authority for Sub-Areas- Notwithstanding any
other provision of law, if the Secretary of Housing and Urban
Development determines, for any geographic area that is smaller
than an area for which dollar amount limitations on the principal
obligation of a mortgage are determined under section 203(b)(2) of
the National Housing Act, that a higher such maximum dollar amount
limitation is warranted for any particular size or sizes of
residences in such sub-area by higher median home prices in such
sub-area, the Secretary may, for mortgages for which the mortgagee
issues credit approval for the borrower during calendar year 2009,
increase the maximum dollar amount limitation for such size or
sizes of residences for such sub-area that is otherwise in effect
(including pursuant to subsection (a) of this section), but in no
case to an amount that exceeds the amount specified in section
202(a)(2) of the Economic Stimulus Act of 2008.
SEC. 12003. GSE CONFORMING LOAN LIMITS FOR 2009.
(a) Loan Limit Floor Based on 2008 Levels- For mortgages
originated during calendar year 2009, if the limitation on the
maximum original principal obligation of a mortgage that may
purchased by the Federal National Mortgage Association or the
Federal Home Loan Mortgage Corporation determined under section
302(b)(2) of the Federal National Mortgage Association Charter Act
(12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1754(a)(2)),
respectively, for any size residence for any area is less than
such maximum original principal obligation limitation that was in
effect for such size residence for such area for 2008 pursuant to
section 201 of the Economic Stimulus Act of 2008 (Public Law
110-185; 122 Stat. 619), notwithstanding any other provision of
law, the limitation on the maximum original principal obligation
of a mortgage for such Association and Corporation for such size
residence for such area shall be such maximum limitation in effect
for such size residence for such area for 2008.
(b) Discretionary Authority for Sub-Areas- Notwithstanding any
other provision of law, if the Director of the Federal Housing
Finance Agency determines, for any geographic area that is smaller
than an area for which limitations on the maximum original
principal obligation of a mortgage are determined for the Federal
National Mortgage Association or the Federal Home Loan Mortgage
Corporation, that a higher such maximum original principal
obligation limitation is warranted for any particular size or
sizes of residences in such sub-area by higher median home prices
in such sub-area, the Director may, for mortgages originated
during 2009, increase the maximum original principal obligation
limitation for such size or sizes of residences for such sub-area
that is otherwise in effect (including pursuant to subsection (a)
of this section) for such Association and Corporation, but in no
case to an amount that exceeds the amount specified in the matter
following the comma in section 201(a)(1)(B) of the Economic
Stimulus Act of 2008.
SEC. 12004. FHA REVERSE MORTGAGE LOAN LIMITS FOR 2009.
For mortgages for which the mortgagee issues credit approval for
the borrower during calendar year 2009, the second sentence of
section 255(g) of the National Housing Act (12 U.S.C. 171520(g))
shall be considered to require that in no case may the benefits of
insurance under such section 255 exceed 150 percent of the maximum
dollar amount in effect under the sixth sentence of section
305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1454(a)(2)).
TITLE XIII--STATE FISCAL STABILIZATION FUND
DEPARTMENT OF EDUCATION
State Fiscal Stabilization Fund
For necessary expenses for a State Fiscal Stabilization Fund,
$79,000,000,000, which shall be administered by the Department of
Education, of which $39,500,000,000 shall become available on July
1, 2009, and remain available through September 30, 2010, and
$39,500,000,000 shall become available on July 1, 2010, and remain
available through September 30, 2011: /Provided/, That the
provisions of section 1103 of this Act shall not apply to the
funds reserved under section 13001(c) of this title: /Provided
further/, That the amount made available under section 13001(b) of
this title for administration and oversight shall take the place
of the set-aside under section 1106 of this Act.
GENERAL PROVISIONS, THIS TITLE
SEC. 13001. ALLOCATIONS.
(a) Outlying Areas- From each year's appropriation to carry out
this title, the Secretary of Education shall first allocate one
half of 1 percent to the outlying areas on the basis of their
respective needs, as determined by the Secretary, 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 $12,500,000 each year 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
$7,500,000,000 each year for grants under sections 13006 and 13007.
(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
obligate within one year of receiving a grant, and the Secretary
shall reallocate such funds to the remaining States in accordance
with subsection (d).
SEC. 13002. STATE USES OF FUNDS.
(a) Education Fund-
(1) IN GENERAL- For each fiscal year, the Governor shall use
at least 61 percent of the State's allocation under section
13001 for the support of elementary, secondary, and
postsecondary education.
(2) RESTORING 2008 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 principal elementary and secondary
funding formula, that is needed to restore State
support for elementary and secondary education
to the fiscal year 2008 level; and
(ii) to provide the amount of funds to public
institutions of higher education in the State
that is needed to restore State support for
postsecondary education to the fiscal year 2008
level.
(B) SHORTFALL- If the Governor determines that the
amount of funds available under paragraph (1) is
insufficient to restore State support for education to
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 support for the education
sectors described in those clauses.
(3) SUBGRANTS TO IMPROVE BASIC PROGRAMS OPERATED BY LOCAL
EDUCATIONAL AGENCIES- After carrying out paragraph (2), the
Governor shall use any funds remaining under paragraph (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- For each fiscal year, the Governor
may use up to 39 percent of the State's allocation under section
1301 for public safety and other government services, which may
include assistance for elementary and secondary education and
public institutions of higher education.
SEC. 13003. 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'), or the Carl D. Perkins Career
and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.) (`the
Perkins Act').
(b) Prohibition- A local educational agency may not use funds
received under this title for capital projects unless authorized
by ESEA, IDEA, or the Perkins Act.
SEC. 13004. 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.
(b) Prohibition- An institution of higher education may not use
funds received under this title to increase its endowment.
(c) Additional Prohibition- An institution of higher education may
not use funds received under this title for construction,
renovation, or facility repair.
SEC. 13005. STATE APPLICATIONS.
(a) In General- The Governor of a State desiring to receive an
allocation under section 13001 shall submit an annual application
at such time, in such manner, and containing such information as
the Secretary may reasonably require.
(b) First Year Application- In the first of such applications, the
Governor shall--
(1) include the assurances described in subsection (e);
(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.
(c) Second Year Application- In the second year application, the
Governor shall--
(1) include the assurances described in subsection (e); and
(2) describe how the State intends to use its allocation.
(d) Incentive Grant Application- The Governor of a State seeking a
grant under section 13006 shall--
(1) submit an application for consideration;
(2) describe the status of the State's progress in each of
the areas described in subsection (e), and the strategies
the State is employing to help ensure that high-need
students in the State continue making progress towards
meeting the State's student academic achievement standards;
(3) describe how the State would use its grant funding,
including how it will allocate the funds to give priority to
high-need schools and local educational agencies; and
(4) include a plan for evaluating its progress in closing
achievement gaps.
(e) Assurances- An application under subsection (b) or (c) shall
include the following assurances:
(1) MAINTENANCE OF EFFORT-
(A) ELEMENTARY AND SECONDARY EDUCATION- The State
will, in each of fiscal years 2009 and 2010, maintain
State support for elementary and secondary education
at least at the level of such support in fiscal year 2006.
(B) HIGHER EDUCATION- The State will, in each of
fiscal years 2009 and 2010, maintain State support for
public institutions of higher education (not including
support for capital projects or for research and
development) at least at the level of such support in
fiscal year 2006.
(2) ACHIEVING EQUITY IN TEACHER DISTRIBUTION- The State will
take actions to comply with section 1111(b)(8)(C) of ESEA
(20 U.S.C. 6311(b)(8)(C)) in order to address inequities in
the distribution of 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
inexperienced, 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) ASSESSMENTS- The State--
(A) will enhance the quality of academic assessments
described in section 1111(b)(3) of 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)); and
(B) will comply with the requirements of paragraphs
3(C)(ix) and (6) of section 1111(b) of ESEA (20 U.S.C.
6311(b)) and section 612(a)(16) of IDEA (20 U.S.C.
1412(a)(16)) related to the inclusion of children with
disabilities and limited English proficient students
in State assessments, the development of valid and
reliable assessments for those students, and the
provision of accommodations that enable their
participation in State assessments.
SEC. 13006. STATE INCENTIVE GRANTS.
(a) In General- From the total amount reserved under section
13001(c) that is not used for section 13007, the Secretary shall,
in fiscal year 2010, make grants to States that have made
significant progress in meeting the objectives of paragraphs (2),
(3), and (4) of section 13005(e).
(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 13005 and such other criteria as the Secretary determines
appropriate.
(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 ESEA (20 U.S.C. 6311 et seq.) for the most recent year.
SEC. 13007. INNOVATION FUND.
(a) In General-
(1) PROGRAM ESTABLISHED- From the total amount reserved
under section 13001(c), the Secretary may reserve up to
$325,000,000 each year to establish an Innovation Fund,
which shall consist of academic achievement awards that
recognize States, local educational agencies, or schools
that meet the requirements described in subsection (b).
(2) BASIS FOR AWARDS- The Secretary shall make awards to
States, local educational agencies, or schools that have
made significant gains in closing the achievement gap as
described in subsection (b)(1)--
(A) to allow such States, local educational agencies,
and schools to expand their work and serve as models
for best practices;
(B) to allow such States, local educational agencies,
and schools 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
success.
(b) Eligibility- To be eligible for such an award, a State, local
educational agency, or school shall--
(1) have significantly closed the achievement gaps between
groups of students described in section 1111(b)(2) of 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 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.
SEC. 13008. 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
distribution of teachers, in implementing a State student
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; and
(7) the extent to which public institutions of higher
education maintained, increased, or decreased enrollment of
in-State students, including students eligible for Pell
Grants or other need-based financial assistance.
SEC. 13009. EVALUATION.
The Comptroller General of the United States shall conduct
evaluations of the programs under sections 13006 and 13007 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. 13010. SECRETARY'S REPORT TO CONGRESS.
The Secretary shall submit a report to the Committee on Education
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 13008.
SEC. 13011. 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. 13012. DEFINITIONS.
Except as otherwise provided in this title, as used in this title--
(1) 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);
(2) the term `Secretary' means the Secretary of Education;
(3) the term `State' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico; and
(4) any other term used in this title that is defined in
section 9101 of ESEA (20 U.S.C. 7801) shall have the meaning
given the term in that section.
DIVISION B--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, whenever in
this title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents- The table of contents for this title is as
follows:
Sec. 1000. Short title, etc.
Subtitle A--Making Work Pay
Sec. 1001. Making work pay credit.
Subtitle B--Additional Tax Relief for Families With Children
Sec. 1101. Increase in earned income tax credit.
Sec. 1102. Increase of refundable portion of child credit.
Subtitle C--American Opportunity Tax Credit
Sec. 1201. American opportunity tax credit.
Subtitle D--Housing Incentives
Sec. 1301. Waiver of requirement to repay first-time
homebuyer credit.
Sec. 1302. Coordination of low-income housing credit and
low-income housing grants.
Subtitle E--Tax Incentives for Business
Part 1--Temporary Investment Incentives
Sec. 1401. Special allowance for certain property acquired
during 2009.
Sec. 1402. Temporary increase in limitations on expensing of
certain depreciable business assets.
Part 2--5-Year Carryback of Operating Losses
Sec. 1411. 5-year carryback of operating losses.
Sec. 1412. Exception for TARP recipients.
Part 3--Incentives for New Jobs
Sec. 1421. Incentives to hire unemployed veterans and
disconnected youth.
Part 4--Clarification of Regulations Related to Limitations on
Certain Built-In Losses Following an Ownership Change
Sec. 1431. Clarification of regulations related to
limitations on certain built-in losses following an
ownership change.
Subtitle F--Fiscal Relief for State and Local Governments
Part 1--Improved Marketability for Tax-Exempt Bonds
Sec. 1501. De minimis safe harbor exception for tax-exempt
interest expense of financial institutions.
Sec. 1502. Modification of small issuer exception to
tax-exempt interest expense allocation rules for financial
institutions.
Sec. 1503. Temporary modification of alternative minimum tax
limitations on tax-exempt bonds.
Part 2--Tax Credit Bonds for Schools
Sec. 1511. Qualified school construction bonds.
Sec. 1512. Extension and expansion of qualified zone academy
bonds.
Part 3--Taxable Bond Option for Governmental Bonds
Sec. 1521. Taxable bond option for governmental bonds.
Part 4--Recovery Zone Bonds
Sec. 1531. Recovery zone bonds.
Sec. 1532. Tribal economic development bonds.
Part 5--Repeal of Withholding Tax on Government Contractors
Sec. 1541. Repeal of withholding tax on government contractors.
Subtitle G--Energy Incentives
Part 1--Renewable Energy Incentives
Sec. 1601. Extension of credit for electricity produced from
certain renewable resources.
Sec. 1602. Election of investment credit in lieu of
production credit.
Sec. 1603. Repeal of certain limitations on credit for
renewable energy property.
Sec. 1604. Coordination with renewable energy grants.
Part 2--Increased Allocations of New Clean Renewable Energy Bonds
and Qualified Energy Conservation Bonds
Sec. 1611. Increased limitation on issuance of new clean
renewable energy bonds.
Sec. 1612. Increased limitation and expansion of qualified
energy conservation bonds.
Part 3--Energy Conservation Incentives
Sec. 1621. Extension and modification of credit for
nonbusiness energy property.
Sec. 1622. Modification of credit for residential energy
efficient property.
Sec. 1623. Temporary increase in credit for alternative fuel
vehicle refueling property.
Part 4--Energy Research Incentives
Sec. 1631. Increased research credit for energy research.
Subtitle H--Other Provisions
Part 1--Application of Certain Labor Standards to Projects
Financed With Certain Tax-Favored Bonds
Sec. 1701. Application of certain labor standards to
projects financed with certain tax-favored bonds.
Part 2--Grants To Provide Financing for Low-Income Housing
Sec. 1711. Grants to States for low-income housing projects
in lieu of low-income housing credit allocations for 2009.
Part 3--Grants for Specified Energy Property in Lieu of Tax Credits
Sec. 1721. Grants for specified energy property in lieu of
tax credits.
Part 4--Study of Economic, Employment, and Related Effects of This Act
Sec. 1731. Study of economic, employment, and related
effects of this Act.
Subtitle A--Making Work Pay
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 individual,
there shall be allowed as a credit against the tax imposed 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) $500 ($1,000 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)
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) Definitions- For purposes of this section--
`(1) ELIGIBLE INDIVIDUAL- The term `eligible individual'
means any individual other than--
`(A) any nonresident alien individual,
`(B) any individual with respect to whom a deduction
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
`(C) an estate or trust.
Such term shall not include any individual unless the
requirements of section 32(c)(1)(E) are met with respect to
such individual.
`(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.
`(d) Termination- This section shall not apply to taxable years
beginning after December 31, 2010.'.
(b) Treatment of Possessions-
(1) PAYMENTS TO POSSESSIONS-
(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 provided 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 amendments 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, for purposes of
determining the eligibility of such individual or any other
individual for benefits or assistance, or the amount or extent of
benefits or assistance, under any Federal program or under any
State or local program financed in whole or in part with Federal
funds.
(d) Conforming Amendments-
(1) Section 6211(b)(4)(A) is amended by inserting `36A,'
after `36,'.
(2) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting `36A,' after `36,'.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 36 the following new item:
`Sec. 36A. Making work pay credit.'.
(e) Effective Date- This section shall apply to taxable years
beginning after December 31, 2008.
Subtitle B--Additional Tax Relief for Families With Children
SEC. 1101. INCREASE IN EARNED INCOME TAX CREDIT.
(a) In General- Subsection (b) of section 32 is amended by adding
at the end the following new paragraph:
`(3) SPECIAL RULES FOR 2009 AND 2010- In the case of any
taxable year beginning in 2009 or 2010--
`(A) INCREASED CREDIT PERCENTAGE FOR 3 OR MORE
QUALIFYING CHILDREN- In the case of a taxpayer with 3
or more qualifying children, the credit percentage is
45 percent.
`(B) REDUCTION OF MARRIAGE PENALTY-
`(i) IN GENERAL- The dollar amount in effect
under paragraph (2)(B) shall be $5,000.
`(ii) INFLATION ADJUSTMENT- In the case of any
taxable year beginning in 2010, the $5,000
amount in clause (i) shall be increased by an
amount equal to--
`(I) such dollar amount, multiplied by
`(II) the cost of living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year
begins determined by substituting
`calendar year 2008' for `calendar year
1992' in subparagraph (B) thereof.
`(iii) ROUNDING- Subparagraph (A) of subsection
(j)(2) shall apply after taking into account any
increase under clause (ii).'.
(b) Effective Date- The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 1102. INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT.
(a) In General- Paragraph (4) of section 24(d) is amended to read
as follows:
`(4) SPECIAL RULE FOR 2009 AND 2010- Notwithstanding
paragraph (3), in the case of any taxable year beginning in
2009 or 2010, the dollar amount in effect for such taxable
year under paragraph (1)(B)(i) shall be zero.'.
(b) Effective Date- The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
Subtitle C--American Opportunity Tax Credit
SEC. 1201. AMERICAN OPPORTUNITY TAX CREDIT.
(a) In General- Section 25A (relating to Hope scholarship credit)
is amended by redesignating subsection (i) as subsection (j) and
by inserting after subsection (h) the following new subsection:
`(i) American Opportunity Tax Credit- In the case of any taxable
year beginning in 2009 or 2010--
`(1) INCREASE IN CREDIT- The Hope Scholarship Credit shall
be an amount equal to the sum of--
`(A) 100 percent of so much of the qualified tuition
and related expenses paid by the taxpayer during the
taxable year (for education furnished to the eligible
student during any academic period beginning in such
taxable year) as does not exceed $2,000, plus
`(B) 25 percent of such expenses so paid as exceeds
$2,000 but does not exceed $4,000.
`(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF POST-SECONDARY
EDUCATION- Subparagraphs (A) and (C) of subsection (b)(2)
shall be applied by substituting `4' for `2'.
`(3) QUALIFIED TUITION AND RELATED EXPENSES TO INCLUDE
REQUIRED COURSE MATERIALS- Subsection (f)(1)(A) shall be
applied by substituting `tuition, fees, and course
materials' for `tuition and fees'.
`(4) INCREASE IN AGI LIMITS FOR HOPE SCHOLARSHIP CREDIT- In
lieu of applying subsection (d) with respect to the Hope
Scholarship Credit, such credit (determined without regard
to this paragraph) shall be reduced (but not below zero) by
the amount which bears the same ratio to such credit (as so
determined) as--
`(A) the excess of--
`(i) the taxpayer's modified adjusted gross
income (as defined in subsection (d)(3)) for
such taxable year, over
`(ii) $80,000 ($160,000 in the case of a joint
return), bears to
`(B) $10,000 ($20,000 in the case of a joint return).
`(5) CREDIT ALLOWED AGAINST ALTERNATIVE MINIMUM TAX- In the
case of a taxable year to which section 26(a)(2) does not
apply, so much of the credit allowed under subsection (a) as
is attributable to the Hope Scholarship Credit shall not
exceed the excess of--
`(A) the sum of the regular tax liability (as defined
in section 26(b)) plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under this
subpart (other than this subsection and sections 23,
25D, and 30D) and section 27 for the taxable year.
Any reference in this section or section 24, 25, 26, 25B,
904, or 1400C to a credit allowable under this subsection
shall be treated as a reference to so much of the credit
allowable under subsection (a) as is attributable to the
Hope Scholarship Credit.
`(6) PORTION OF CREDIT MADE REFUNDABLE- 40 percent of so
much of the credit allowed under subsection (a) as is
attributable to the Hope Scholarship Credit (determined
after application of paragraph (4) and without regard to
this paragraph and section 26(a)(2) or paragraph (5), as the
case may be) shall be treated as a credit allowable under
subpart C (and not allowed under subsection (a)). The
preceding sentence shall not apply to any taxpayer for any
taxable year if such taxpayer is a child to whom subsection
(g) of section 1 applies for such taxable year.
`(7) COORDINATION WITH MIDWESTERN DISASTER AREA BENEFITS- In
the case of a taxpayer with respect to whom section
702(a)(1)(B) of the Heartland Disaster Tax Relief Act of
2008 applies for any taxable year, such taxpayer may elect
to waive the application of this subsection to such taxpayer
for such taxable year.'.
(b) Conforming Amendments-
(1) Section 24(b)(3)(B) is amended by inserting `25A(i),'
after `23,'.
(2) Section 25(e)(1)(C)(ii) is amended by inserting
`25A(i),' after `24,'.
(3) Section 26(a)(1) is amended by inserting `25A(i),' after
`24,'.
(4) Section 25B(g)(2) is amended by inserting `25A(i),'
after `23,'.
(5) Section 904(i) is amended by inserting `25A(i),' after
`24,'.
(6) Section 1400C(d)(2) is amended by inserting `25A(i),'
after `24,'.
(7) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting `25A,' before `35'.
(c) Effective Date- The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
(d) Application of EGTRRA Sunset- The amendment made by subsection
(b)(1) shall be subject to title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 in the same manner as the
provision of such Act to which such amendment relates.
(e) Treasury Studies Regarding Education Incentives-
(1) STUDY REGARDING COORDINATION WITH NON-TAX EDUCATIONAL
INCENTIVES- The Secretary of the Treasury, or the
Secretary's delegate, shall study how to coordinate the
credit allowed under section 25A of the Internal Revenue
Code of 1986 with the Federal Pell Grant program under
section 401 of the Higher Education Act of 1965.
(2) STUDY REGARDING IMPOSITION OF COMMUNITY SERVICE
REQUIREMENTS- The Secretary of the Treasury, or the
Secretary's delegate, shall study the feasibility of
requiring students to perform community service as a
condition of taking their tuition and related expenses into
account under section 25A of the Internal Revenue Code of 1986.
(3) REPORT- Not later than 1 year after the date of the
enactment of this Act, the Secretary of the Treasury, or the
Secretary's delegate, shall report to Congress on the
results of the studies conducted under this paragraph.
Subtitle D--Housing Incentives
SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST-TIME HOMEBUYER CREDIT.
(a) In General- Paragraph (4) of section 36(f) is amended by
adding at the end the following new subparagraph:
`(D) WAIVER OF RECAPTURE FOR PURCHASES IN 2009- In the
case of any credit allowed with respect to the
purchase of a principal residence after December 31,
2008, and before July 1, 2009--
`(i) paragraph (1) shall not apply, and
`(ii) paragraph (2) shall apply only if the
disposition or cessation described in paragraph
(2) with respect to such residence occurs during
the 36-month period beginning on the date of the
purchase of such residence by the taxpayer.'.
(b) Conforming Amendment- Subsection (g) of section 36 is amended
by striking `subsection (c)' and inserting `subsections (c) and
(f)(4)(D)'.
(c) Effective Date- The amendments made by this section shall
apply to residences purchased after December 31, 2008.
SEC. 1302. COORDINATION OF LOW-INCOME HOUSING CREDIT AND
LOW-INCOME HOUSING GRANTS.
Subsection (i) of section 42 of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
`(9) COORDINATION WITH LOW-INCOME HOUSING GRANTS-
`(A) REDUCTION IN STATE HOUSING CREDIT CEILING FOR
LOW-INCOME HOUSING GRANTS RECEIVED IN 2009- For
purposes of this section, the amounts described in
clauses (i) through (iv) of subsection (h)(3)(C) with
respect to any State for 2009 shall each be reduced by
so much of such amount as is taken into account in
determining the amount of any grant to such State
under section 1711 of the American Recovery and
Reinvestment Tax Act of 2009.
`(B) SPECIAL RULE FOR BASIS- Basis of a qualified
low-income building shall not be reduced by the amount
of any grant described in subparagraph (A).'.
Subtitle E--Tax Incentives for Business
/PART 1--TEMPORARY INVESTMENT INCENTIVES/
SEC. 1401. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING
2009.
(a) In General- Paragraph (2) of section 168(k) is amended--
(1) by striking `January 1, 2010' and inserting `January 1,
2011', and
(2) by striking `January 1, 2009' each place it appears and
inserting `January 1, 2010'.
(b) Conforming Amendments-
(1) The heading for subsection (k) of section 168 is amended
by striking `January 1, 2009' and inserting `January 1, 2010'.
(2) The heading for clause (ii) of section 168(k)(2)(B) is
amended by striking `PRE-JANUARY 1, 2009' and inserting
`PRE-JANUARY 1, 2010'.
(3) Subparagraph (D) of section 168(k)(4) is amended--
(A) by striking `and' at the end of clause (i),
(B) by redesignating clause (ii) as clause (v), and
(C) by inserting after clause (i) the following new
clauses:
`(ii) `April 1, 2008' shall be substituted for
`January 1, 2008' in subparagraph (A)(iii)(I)
thereof,
`(iii) `January 1, 2009' shall be substituted
for `January 1, 2010' each place it appears,
`(iv) `January 1, 2010' shall be substituted for
`January 1, 2011' in subparagraph (A)(iv)
thereof, and'.
(4) Subparagraph (B) of section 168(l)(5) is amended by
striking `January 1, 2009' and inserting `January 1, 2010'.
(5) Subparagraph (B) of section 1400N(d)(3) is amended by
striking `January 1, 2009' and inserting `January 1, 2010'.
(c) Effective Dates-
(1) IN GENERAL- Except as provided in paragraph (2), the
amendments made by this section shall apply to property
placed in service after December 31, 2008, in taxable years
ending after such date.
(2) TECHNICAL AMENDMENT- Section 168(k)(4)(D)(ii) of the
Internal Revenue Code of 1986, as added by subsection
(b)(3)(C), shall apply to taxable years ending after March
31, 2008.
SEC. 1402. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF
CERTAIN DEPRECIABLE BUSINESS ASSETS.
(a) In General- Paragraph (7) of section 179(b) is amended--
(1) by striking `2008' and inserting `2008, or 2009', and
(2) by striking `2008' in the heading thereof and inserting
`2008, AND 2009'.
(b) Effective Date- The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
/PART 2--5-YEAR CARRYBACK OF OPERATING LOSSES/
SEC. 1411. 5-YEAR CARRYBACK OF OPERATING LOSSES.
(a) In General- Subparagraph (H) of section 172(b)(1) is amended
to read as follows:
`(H) CARRYBACK FOR 2008 AND 2009 NET OPERATING LOSSES-
`(i) IN GENERAL- In the case of an applicable
2008 or 2009 net operating loss with respect to
which the taxpayer has elected the application
of this subparagraph--
`(I) such net operating loss shall be
reduced by 10 percent of such loss
(determined without regard to this
subparagraph),
`(II) subparagraph (A)(i) shall be applied
by substituting any whole number elected
by the taxpayer which is more than 2 and
less than 6 for `2',
`(III) subparagraph (E)(ii) shall be
applied by substituting the whole number
which is one less than the whole number
substituted under subclause (II) for `2', and
`(IV) subparagraph (F) shall not apply.
`(ii) APPLICABLE 2008 OR 2009 NET OPERATING
LOSS- For purposes of this subparagraph, the
term `applicable 2008 or 2009 net operating
loss' means--
`(I) the taxpayer's net operating loss for
any taxable year ending in 2008 or 2009, or
`(II) if the taxpayer elects to have this
subclause apply in lieu of subclause (I),
the taxpayer's net operating loss for any
taxable year beginning in 2008 or 2009.
`(iii) ELECTION- Any election under this
subparagraph shall be made in such manner as may
be prescribed by the Secretary, and shall be
made by the due date (including extension of
time) for filing the taxpayer's return for the
taxable year of the net operating loss. Any such
election, once made, shall be irrevocable.
`(iv) COORDINATION WITH ALTERNATIVE TAX NET
OPERATING LOSS DEDUCTION- In the case of a
taxpayer who elects to have clause (ii)(II)
apply, section 56(d)(1)(A)(ii) shall be applied
by substituting `ending during 2001 or 2002 or
beginning during 2008 or 2009' for `ending
during 2001, 2002, 2008, or 2009'.'.
(b) Alternative Tax Net Operating Loss Deduction- Subclause (I) of
section 56(d)(1)(A)(ii) is amended to read as follows:
`(I) the amount of such deduction
attributable to the sum of carrybacks of
net operating losses from taxable years
ending during 2001, 2002, 2008, or 2009
and carryovers of net operating losses to
such taxable years, or'.
(c) Loss From Operations of Life Insurance Companies- Subsection
(b) of section 810 is amended by adding at the end the following
new paragraph:
`(4) CARRYBACK FOR 2008 AND 2009 LOSSES-
`(A) IN GENERAL- In the case of an applicable 2008 or
2009 loss from operations with respect to which the
taxpayer has elected the application of this paragraph--
`(i) such loss from operations shall be reduced
by 10 percent of such loss (determined without
regard to this paragraph), and
`(ii) paragraph (1)(A) shall be applied, at the
election of the taxpayer, by substituting `5' or
`4' for `3'.
`(B) APPLICABLE 2008 OR 2009 LOSS FROM OPERATIONS- For
purposes of this paragraph, the term `applicable 2008
or 2009 loss from operations' means--
`(i) the taxpayer's loss from operations for any
taxable year ending in 2008 or 2009, or
`(ii) if the taxpayer elects to have this clause
apply in lieu of clause (i), the taxpayer's loss
from operations for any taxable year beginning
in 2008 or 2009.
`(C) ELECTION- Any election under this paragraph shall
be made in such manner as may be prescribed by the
Secretary, and shall be made by the due date
(including extension of time) for filing the
taxpayer's return for the taxable year of the loss
from operations. Any such election, once made, shall
be irrevocable.
`(D) COORDINATION WITH ALTERNATIVE TAX NET OPERATING
LOSS DEDUCTION- In the case of a taxpayer who elects
to have subparagraph (B)(ii) apply, section
56(d)(1)(A)(ii) shall be applied by substituting
`ending during 2001 or 2002 or beginning during 2008
or 2009' for `ending during 2001, 2002, 2008, or 2009'.'.
(d) Conforming Amendment- Section 172 is amended by striking
subsection (k).
(e) Effective Date-
(1) IN GENERAL- Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to net operating losses arising in taxable years ending
after December 31, 2007.
(2) ALTERNATIVE TAX NET OPERATING LOSS DEDUCTION- The
amendment made by subsection (b) shall apply to taxable
years ending after 1997.
(3) LOSS FROM OPERATIONS OF LIFE INSURANCE COMPANIES- The
amendment made by subsection (d) shall apply to losses from
operations arising in taxable years ending after December
31, 2007.
(4) TRANSITIONAL RULE- In the case of a net operating loss
(or, in the case of a life insurance company, a loss from
operations) for a taxable year ending before the date of the
enactment of this Act--
(A) any election made under section 172(b)(3) or
810(b)(3) of the Internal Revenue Code of 1986 with
respect to such loss may (notwithstanding such
section) be revoked before the applicable date,
(B) any election made under section 172(b)(1)(H) or
810(b)(4) of such Code with respect to such loss shall
(notwithstanding such section) be treated as timely
made if made before the applicable date, and
(C) any application under section 6411(a) of such Code
with respect to such loss shall be treated as timely
filed if filed before the applicable date.
For purposes of this paragraph, the term `applicable date'
means the date which is 60 days after the date of the
enactment of this Act.
SEC. 1412. EXCEPTION FOR TARP RECIPIENTS.
The amendments made by this part shall not apply to--
(1) any taxpayer if--
(A) the Federal Government acquires, at any time, an
equity interest in the taxpayer pursuant to the
Emergency Economic Stabilization Act of 2008, or
(B) the Federal Government acquires, at any time, any
warrant (or other right) to acquire any equity
interest with respect to the taxpayer pursuant to such
Act,
(2) the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation, and
(3) any taxpayer which at any time in 2008 or 2009 is a
member of the same affiliated group (as defined in section
1504 of the Internal Revenue Code of 1986, determined
without regard to subsection (b) thereof) as a taxpayer
described in paragraph (1) or (2).
/PART 3--INCENTIVES FOR NEW JOBS/
SEC. 1421. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED
YOUTH.
(a) In General- Subsection (d) of section 51 is amended by adding
at the end the following new paragraph:
`(14) CREDIT ALLOWED FOR UNEMPLOYED VETERANS AND
DISCONNECTED YOUTH HIRED IN 2009 OR 2010-
`(A) IN GENERAL- Any unemployed veteran or
disconnected youth who begins work for the employer
during 2009 or 2010 shall be treated as a member of a
targeted group for purposes of this subpart.
`(B) DEFINITIONS- For purposes of this paragraph--
`(i) UNEMPLOYED VETERAN- The term `unemployed
veteran' means any veteran (as defined in
paragraph (3)(B), determined without regard to
clause (ii) thereof) who is certified by the
designated local agency as--
`(I) having been discharged or released
from active duty in the Armed Forces
during 2008, 2009, or 2010, and
`(II) being in receipt of unemployment
compensation under State or Federal law
for not less than 4 weeks during the
1-year period ending on the hiring date.
`(ii) DISCONNECTED YOUTH- The term `disconnected
youth' means any individual who is certified by
the designated local agency--
`(I) as having attained age 16 but not age
25 on the hiring date,
`(II) as not regularly attending any
secondary, technical, or post-secondary
school during the 6-month period preceding
the hiring date,
`(III) as not regularly employed during
such 6-month period, and
`(IV) as not readily employable by reason
of lacking a sufficient number of basic
skills.'.
(b) Effective Date- The amendments made by this section shall
apply to individuals who begin work for the employer after
December 31, 2008.
/PART 4--CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON
CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE/
SEC. 1431. CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON
CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE.
(a) Findings- Congress finds as follows:
(1) The delegation of authority to the Secretary of the
Treasury under section 382(m) of the Internal Revenue Code
of 1986 does not authorize the Secretary to provide
exemptions or special rules that are restricted to
particular industries or classes of taxpayers.
(2) Internal Revenue Service Notice 2008-83 is inconsistent
with the congressional intent in enacting such section 382(m).
(3) The legal authority to prescribe Internal Revenue
Service Notice 2008-83 is doubtful.
(4) However, as taxpayers should generally be able to rely
on guidance issued by the Secretary of the Treasury
legislation is necessary to clarify the force and effect of
Internal Revenue Service Notice 2008-83 and restore the
proper application under the Internal Revenue Code of 1986
of the limitation on built-in losses following an ownership
change of a bank.
(b) Determination of Force and Effect of Internal Revenue Service
Notice 2008-83 Exempting Banks From Limitation on Certain Built-in
Losses Following Ownership Change-
(1) IN GENERAL- Internal Revenue Service Notice 2008-83--
(A) shall be deemed to have the force and effect of
law with respect to any ownership change (as defined
in section 382(g) of the Internal Revenue Code of
1986) occurring on or before January 16, 2009, and
(B) shall have no force or effect with respect to any
ownership change after such date.
(2) BINDING CONTRACTS- Notwithstanding paragraph (1),
Internal Revenue Service Notice 2008-83 shall have the force
and effect of law with respect to any ownership change (as
so defined) which occurs after January 16, 2009 if such change--
(A) is pursuant to a written binding contract entered
into on or before such date, or
(B) is pursuant to a written agreement entered into on
or before such date and such agreement was described
on or before such date in a public announcement or in
a filing with the Securities and Exchange Commission
required by reason of such ownership change.
Subtitle F--Fiscal Relief for State and Local Governments
/PART 1--IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS/
SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT
INTEREST EXPENSE OF FINANCIAL INSTITUTIONS.
(a) In General- Subsection (b) of section 265 is amended by adding
at the end the following new paragraph:
`(7) DE MINIMIS EXCEPTION FOR BONDS ISSUED DURING 2009 OR 2010-
`(A) IN GENERAL- In applying paragraph (2)(A), there
shall not be taken into account tax-exempt obligations
issued during 2009 or 2010.
`(B) LIMITATION- The amount of tax-exempt obligations
not taken into account by reason of subparagraph (A)
shall not exceed 2 percent of the amount determined
under paragraph (2)(B).
`(C) REFUNDINGS- For purposes of this paragraph, a
refunding bond (whether a current or advance
refunding) shall be treated as issued on the date of
the issuance of the refunded bond (or in the case of a
series of refundings, the original bond).'.
(b) Treatment as Financial Institution Preference Item- Clause
(iv) of section 291(e)(1)(B) is amended by adding at the end the
following: `That portion of any obligation not taken into account
under paragraph (2)(A) of section 265(b) by reason of paragraph
(7) of such section shall be treated for purposes of this section
as having been acquired on August 7, 1986.'.
(c) Effective Date- The amendments made by this section shall
apply to obligations issued after December 31, 2008.
SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT
INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL INSTITUTIONS.
(a) In General- Paragraph (3) of section 265(b) (relating to
exception for certain tax-exempt obligations) is amended by adding
at the end the following new subparagraph:
`(G) SPECIAL RULES FOR OBLIGATIONS ISSUED DURING 2009
AND 2010-
`(i) INCREASE IN LIMITATION- In the case of
obligations issued during 2009 or 2010,
subparagraphs (C)(i), (D)(i), and (D)(iii)(II)
shall each be applied by substituting
`$30,000,000' for `$10,000,000'.
`(ii) QUALIFIED 501(C)(3) BONDS TREATED AS
ISSUED BY EXEMPT ORGANIZATION- In the case of a
qualified 501(c)(3) bond (as defined in section
145) issued during 2009 or 2010, this paragraph
shall be applied by treating the 501(c)(3)
organization for whose benefit such bond was
issued as the issuer.
`(iii) SPECIAL RULE FOR QUALIFIED FINANCINGS- In
the case of a qualified financing issue issued
during 2009 or 2010--
`(I) subparagraph (F) shall not apply, and
`(II) any obligation issued as a part of
such issue shall be treated as a qualified
tax-exempt obligation if the requirements
of this paragraph are met with respect to
each qualified portion of the issue
(determined by treating each qualified
portion as a separate issue issued by the
qualified borrower with respect to which
such portion relates).
`(iv) QUALIFIED FINANCING ISSUE- For purposes of
this subparagraph, the term `qualified financing
issue' means any composite, pooled, or other
conduit financing issue the proceeds of which
are used directly or indirectly to make or
finance loans to one or more ultimate borrowers
each of whom is a qualified borrower.
`(v) QUALIFIED PORTION- For purposes of this
subparagraph, the term `qualified portion' means
that portion of the proceeds which are used with
respect to each qualified borrower under the issue.
`(vi) QUALIFIED BORROWER- For purposes of this
subparagraph, the term `qualified borrower'
means a borrower which is a State or political
subdivision thereof or an organization described
in section 501(c)(3) and exempt from taxation
under section 501(a).'.
(b) Effective Date- The amendments made by this section shall
apply to obligations issued after December 31, 2008.
SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX
LIMITATIONS ON TAX-EXEMPT BONDS.
(a) Interest on Private Activity Bonds Issued During 2009 and 2010
Not Treated as Tax Preference Item- Subparagraph (C) of section
57(a)(5) is amended by adding at the end a new clause:
`(vi) EXCEPTION FOR BONDS ISSUED IN 2009 AND
2010- For purposes of clause (i), the term
`private activity bond' shall not include any
bond issued after December 31, 2008, and before
January 1, 2011. For purposes of the preceding
sentence, a refunding bond (whether a current or
advance refunding) shall be treated as issued on
the date of the issuance of the refunded bond
(or in the case of a series of refundings, the
original bond).'.
(b) No Adjustment to Adjusted Current Earnings for Interest on
Tax-Exempt Bonds Issued After 2008- Subparagraph (B) of section
56(g)(4) is amended by adding at the end the following new clause:
`(iv) TAX EXEMPT INTEREST ON BONDS ISSUED IN
2009 AND 2010- Clause (i) shall not apply in the
case of any interest on a bond issued after
December 31, 2008, and before January 1, 2011.
For purposes of the preceding sentence, a
refunding bond (whether a current or advance
refunding) shall be treated as issued on the
date of the issuance of the refunded bond (or in
the case of a series of refundings, the original
bond).'.
(c) Effective Date- The amendments made by this section shall
apply to obligations issued after December 31, 2008.
/PART 2--TAX CREDIT BONDS FOR SCHOOLS/
SEC. 1511. QUALIFIED SCHOOL CONSTRUCTION BONDS.
(a) In General- Subpart I of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
`SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS.
`(a) Qualified School Construction Bond- For purposes of this
subchapter, the term `qualified school construction bond' means
any bond issued as part of an issue if--
`(1) 100 percent of the available project proceeds of such
issue are to be used for the construction, rehabilitation,
or repair of a public school facility or for the acquisition
of land on which such a facility is to be constructed with
part of the proceeds of such issue,
`(2) the bond is issued by a State or local government
within the jurisdiction of which such school is located, and
`(3) the issuer designates such bond for purposes of this
section.
`(b) Limitation on Amount of Bonds Designated- The maximum
aggregate face amount of bonds issued during any calendar year
which may be designated under subsection (a) by any issuer shall
not exceed the sum of--
`(1) the limitation amount allocated under subsection (d)
for such calendar year to such issuer, and
`(2) if such issuer is a large local educational agency (as
defined in subsection (e)(4)) or is issuing on behalf of
such an agency, the limitation amount allocated under
subsection (e) for such calendar year to such agency.
`(c) National Limitation on Amount of Bonds Designated- There is a
national qualified school construction bond limitation for each
calendar year. Such limitation is--
`(1) $11,000,000,000 for 2009,
`(2) $11,000,000,000 for 2010, and
`(3) except as provided in subsection (f), zero after 2010.
`(d) 60 Percent of Limitation Allocated Among States-
`(1) IN GENERAL- 60 percent of the limitation applicable
under subsection (c) for any calendar year shall be
allocated by the Secretary among the States in proportion to
the respective numbers of children in each State who have
attained age 5 but not age 18 for the most recent fiscal
year ending before such calendar year. The limitation amount
allocated to a State under the preceding sentence shall be
allocated by the State to issuers within such State.
`(2) MINIMUM ALLOCATIONS TO STATES-
`(A) IN GENERAL- The Secretary shall adjust the
allocations under this subsection for any calendar
year for each State to the extent necessary to ensure
that the sum of--
`(i) the amount allocated to such State under
this subsection for such year, and
`(ii) the aggregate amounts allocated under
subsection (e) to large local educational
agencies in such State for such year,
is not less than an amount equal to such State's
adjusted minimum percentage of the amount to be
allocated under paragraph (1) for the calendar year.
`(B) ADJUSTED MINIMUM PERCENTAGE- A State's adjusted
minimum percentage for any calendar year is the
product of--
`(i) the minimum percentage described in section
1124(d) of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6334(d)) for
such State for the most recent fiscal year
ending before such calendar year, multiplied by
`(ii) 1.68.
`(3) ALLOCATIONS TO CERTAIN POSSESSIONS- The amount to be
allocated under paragraph (1) to any possession of the
United States other than Puerto Rico shall be the amount
which would have been allocated if all allocations under
paragraph (1) were made on the basis of respective
populations of individuals below the poverty line (as
defined by the Office of Management and Budget). In making
other allocations, the amount to be allocated under
paragraph (1) shall be reduced by the aggregate amount
allocated under this paragraph to possessions of the United
States.
`(4) ALLOCATIONS FOR INDIAN SCHOOLS- In addition to the
amounts otherwise allocated under this subsection,
$200,000,000 for calendar year 2009, and $200,000,000 for
calendar year 2010, shall be allocated by the Secretary of
the Interior for purposes of the construction,
rehabilitation, and repair of schools funded by the Bureau
of Indian Affairs. In the case of amounts allocated under
the preceding sentence, Indian tribal governments (as
defined in section 7701(a)(40)) shall be treated as
qualified issuers for purposes of this subchapter.
`(e) 40 Percent of Limitation Allocated Among Largest School
Districts-
`(1) IN GENERAL- 40 percent of the limitation applicable
under subsection (c) for any calendar year shall be
allocated under paragraph (2) by the Secretary among local
educational agencies which are large local educational
agencies for such year.
`(2) ALLOCATION FORMULA- The amount to be allocated under
paragraph (1) for any calendar year shall be allocated among
large local educational agencies in proportion to the
respective amounts each such agency received for Basic
Grants under subpart 2 of part A of title I of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
6331 et seq.) for the most recent fiscal year ending before
such calendar year.
`(3) ALLOCATION OF UNUSED LIMITATION TO STATE- The amount
allocated under this subsection to a large local educational
agency for any calendar year may be reallocated by such
agency to the State in which such agency is located for such
calendar year. Any amount reallocated to a State under the
preceding sentence may be allocated as provided in
subsection (d)(1).
`(4) LARGE LOCAL EDUCATIONAL AGENCY- For purposes of this
section, the term `large local educational agency' means,
with respect to a calendar year, any local educational
agency if such agency is--
`(A) among the 100 local educational agencies with the
largest numbers of children aged 5 through 17 from
families living below the poverty level, as determined
by the Secretary using the most recent data available
from the Department of Commerce that are satisfactory
to the Secretary, or
`(B) 1 of not more than 25 local educational agencies
(other than those described in subparagraph (A)) that
the Secretary of Education determines (based on the
most recent data available satisfactory to the
Secretary) are in particular need of assistance, based
on a low level of resources for school construction, a
high level of enrollment growth, or such other factors
as the Secretary deems appropriate.
`(f) Carryover of Unused Limitation- If for any calendar year--
`(1) the amount allocated under subsection (d) to any State,
exceeds
`(2) the amount of bonds issued during such year which are
designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State for the
following calendar year shall be increased by the amount of such
excess. A similar rule shall apply to the amounts allocated under
subsection (d)(4) or (e).'.
(b) Conforming Amendments-
(1) Paragraph (1) of section 54A(d) is amended by striking
`or' at the end of subparagraph (C), by inserting `or' at
the end of subparagraph (D), and by inserting after
subparagraph (D) the following new subparagraph:
`(E) a qualified school construction bond,'.
(2) Subparagraph (C) of section 54A(d)(2) is amended by
striking `and' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting `, and', and
by adding at the end the following new clause:
`(v) in the case of a qualified school
construction bond, a purpose specified in
section 54F(a)(1).'.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1 is amended by adding at the end
the following new item:
`Sec. 54F. Qualified school construction bonds.'.
(c) Effective Date- The amendments made by this section shall
apply to obligations issued after December 31, 2008.
SEC. 1512. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY BONDS.
(a) In General- Section 54E(c)(1) is amended by striking `and
2009' and inserting `and $1,400,000,000 for 2009 and 2010'.
(b) Effective Date- The amendment made by this section shall apply
to obligations issued after December 31, 2008.
/PART 3--TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS/
SEC. 1521. TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS.
(a) In General- Part IV of subchapter A of chapter 1 is amended by
adding at the end the following new subpart:
/`Subpart J--Taxable Bond Option for Governmental Bonds/
`Sec. 54AA. Taxable bond option for governmental bonds.
`SEC. 54AA. TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS.
`(a) In General- If a taxpayer holds a taxable governmental bond
on one or more interest payment dates of the bond during any
taxable year, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to
the sum of the credits determined under subsection (b) with
respect to such dates.
`(b) Amount of Credit- The amount of the credit determined under
this subsection with respect to any interest payment date for a
taxable governmental bond is 35 percent of the amount of interest
payable by the issuer with respect to such date.
`(c) Limitation Based on Amount of Tax-
`(1) IN GENERAL- The credit allowed under subsection (a) for
any taxable year shall not exceed the excess of--
`(A) the sum of the regular tax liability (as defined
in section 26(b)) plus the tax imposed by section 55, over
`(B) the sum of the credits allowable under this part
(other than subpart C and this subpart).
`(2) CARRYOVER OF UNUSED CREDIT- If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the
credit allowable under subsection (a) for such taxable year
(determined before the application of paragraph (1) for such
succeeding taxable year).
`(d) Taxable Governmental Bond-
`(1) IN GENERAL- For purposes of this section, the term
`taxable governmental bond' means any obligation (other than
a private activity bond) if--
`(A) the interest on such obligation would (but for
this section) be excludable from gross income under
section 103, and
`(B) the issuer makes an irrevocable election to have
this section apply.
`(2) APPLICABLE RULES- For purposes of applying paragraph (1)--
`(A) a taxable governmental bond shall not be treated
as federally guaranteed by reason of the credit
allowed under subsection (a) or section 6432,
`(B) the yield on a taxable governmental bond shall be
determined without regard to the credit allowed under
subsection (a), and
`(C) a bond shall not be treated as a taxable
governmental bond if the issue price has more than a
de minimis amount (determined under rules similar to
the rules of section 1273(a)(3)) of premium over the
stated principal amount of the bond.
`(e) Interest Payment Date- For purposes of this section, the term
`interest payment date' means any date on which the holder of
record of the taxable governmental bond is entitled to a payment
of interest under such bond.
`(f) Special Rules-
`(1) INTEREST ON TAXABLE GOVERNMENTAL BONDS INCLUDIBLE IN
GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES- For purposes
of this title, interest on any taxable governmental bond
shall be includible in gross income.
`(2) APPLICATION OF CERTAIN RULES- Rules similar to the
rules of subsections (f), (g), (h), and (i) of section 54A
shall apply for purposes of the credit allowed under
subsection (a).
`(g) Special Rule for Qualified Bonds Issued Before 2011- In the
case of a qualified bond issued before January 1, 2011--
`(1) ISSUER ALLOWED REFUNDABLE CREDIT- In lieu of any credit
allowed under this section with respect to such bond, the
issuer of such bond shall be allowed a credit as provided in
section 6432.
`(2) QUALIFIED BOND- For purposes of this subsection, the
term `qualified bond' means any taxable governmental bond
issued as part of an issue if--
`(A) 100 percent of the available project proceeds (as
defined in section 54A) of such issue are to be used
for capital expenditures, and
`(B) the issuer makes an irrevocable election to have
this subsection apply.
`(h) Regulations- The Secretary may prescribe such regulations and
other guidance as may be necessary or appropriate to carry out
this section and section 6432.'.
(b) Credit for Qualified Bonds Issued Before 2011- Subchapter B of
chapter 65, as amended by this Act, is amended by adding at the
end the following new section:
`SEC. 6432. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER.
`(a) In General- In the case of a qualified bond issued before
January 1, 2011, the issuer of such bond shall be allowed a credit
with respect to each interest payment under such bond which shall
be payable by the Secretary as provided in subsection (b).
`(b) Payment of Credit- The Secretary shall pay (contemporaneously
with each interest payment date under such bond) to the issuer of
such bond (or to any person who makes such interest payments on
behalf of the issuer) 35 percent of the interest payable under
such bond on such date.
`(c) Application of Arbitrage Rules- For purposes of section 148,
the yield on a qualified bond shall be reduced by the credit
allowed under this section.
`(d) Interest Payment Date- For purposes of this subsection, the
term `interest payment date' means each date on which interest is
payable by the issuer under the terms of the bond.
`(e) Qualified Bond- For purposes of this subsection, the term
`qualified bond' has the meaning given such term in section 54AA(h).'.
(c) Conforming Amendments-
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by striking `or 6428' and inserting `6428, or 6432,'.
(2) Section 54A(c)(1)(B) is amended by striking `subpart C'
and inserting `subparts C and J'.
(3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are
each amended by striking `and I' and inserting `, I, and J'.
(4) Section 6401(b)(1) is amended by striking `and I' and
inserting `I, and J'.
(5) The table of subparts for part IV of subchapter A of
chapter 1 is amended by adding at the end the following new
item:
`Subpart J. Taxable bond option for governmental bonds.'.
(6) The table of sections for subchapter B of chapter 65, as
amended by this Act, is amended by adding at the end the
following new item:
`Sec. 6432. Credit for qualified bonds allowed to issuer on
advance basis.'.
(d) Transitional Coordination With State Law- Except as otherwise
provided by a State after the date of the enactment of this Act,
the interest on any taxable governmental bond (as defined in
section 54AA of the Internal Revenue Code of 1986, as added by
this section) and the amount of any credit determined under such
section with respect to such bond shall be treated for purposes of
the income tax laws of such State as being exempt from Federal
income tax.
(e) Effective Date- The amendments made by this section shall
apply to obligations issued after the date of the enactment of
this Act.
/PART 4--RECOVERY ZONE BONDS/
SEC. 1531. RECOVERY ZONE BONDS.
(a) In General- Subchapter Y of chapter 1 is amended by adding at
the end the following new part:
/`PART III--RECOVERY ZONE BONDS/
`Sec. 1400U-1. Allocation of recovery zone bonds.
`Sec. 1400U-2. Recovery zone economic development bonds.
`Sec. 1400U-3. Recovery zone facility bonds.
`SEC. 1400U-1. ALLOCATION OF RECOVERY ZONE BONDS.
`(a) Allocations-
`(1) IN GENERAL- The Secretary shall allocate the national
recovery zone economic development bond limitation and the
national recovery zone facility bond limitation among the
States in the proportion that each such State's 2008 State
employment decline bears to the aggregate of the 2008 State
employment declines for all of the States.
`(2) 2008 STATE EMPLOYMENT DECLINE- For purposes of this
subsection, the term `2008 State employment decline' means,
with respect to any State, the excess (if any) of--
`(A) the number of individuals employed in such State
determined for December 2007, over
`(B) the number of individuals employed in such State
determined for December 2008.
`(3) ALLOCATIONS BY STATES-
`(A) IN GENERAL- Each State with respect to which an
allocation is made under paragraph (1) shall
reallocate such allocation among the counties and
large municipalities in such State in the proportion
the each such county's or municipality's 2008
employment decline bears to the aggregate of the 2008
employment declines for all the counties and
municipalities in such State.
`(B) LARGE MUNICIPALITIES- For purposes of
subparagraph (A), the term `large municipality' means
a municipality with a population of more than 100,000.
`(C) DETERMINATION OF LOCAL EMPLOYMENT DECLINES- For
purposes of this paragraph, the employment decline of
any municipality or county shall be determined in the
same manner as determining the State employment
decline under paragraph (2), except that in the case
of a municipality any portion of which is in a county,
such portion shall be treated as part of such
municipality and not part of such county.
`(4) NATIONAL LIMITATIONS-
`(A) RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS- There
is a national recovery zone economic development bond
limitation of $10,000,000,000.
`(B) RECOVERY ZONE FACILITY BONDS- There is a national
recovery zone facility bond limitation of $15,000,000,000.
`(b) Recovery Zone- For purposes of this part, the term `recovery
zone' means--
`(1) any area designated by the issuer as having significant
poverty, unemployment, home foreclosures, or general
distress, and
`(2) any area for which a designation as an empowerment zone
or renewal community is in effect.
`SEC. 1400U-2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS.
`(a) In General- In the case of a recovery zone economic
development bond--
`(1) such bond shall be treated as a qualified bond for
purposes of section 6432, and
`(2) subsection (b) of such section shall be applied by
substituting `55 percent' for `35 percent'.
`(b) Recovery Zone Economic Development Bond-
`(1) IN GENERAL- For purposes of this section, the term
`recovery zone economic development bond' means any taxable
governmental bond (as defined in section 54AA(d)) issued
before January 1, 2011, as part of issue if--
`(A) 100 percent of the available project proceeds (as
defined in section 54A) of such issue are to be used
for one or more qualified economic development
purposes, and
`(B) the issuer designates such bond for purposes of
this section.
`(2) LIMITATION ON AMOUNT OF BONDS DESIGNATED- The maximum
aggregate face amount of bonds which may be designated by
any issuer under paragraph (1) shall not exceed the amount
of the recovery zone economic development bond limitation
allocated to such issuer under section 1400U-1.
`(c) Qualified Economic Development Purpose- For purposes of this
section, the term `qualified economic development purpose' means
expenditures for purposes of promoting development or other
economic activity in a recovery zone, including--
`(1) capital expenditures paid or incurred with respect to
property located in such zone,
`(2) expenditures for public infrastructure and construction
of public facilities, and
`(3) expenditures for job training and educational programs.
`SEC. 1400U-3. RECOVERY ZONE FACILITY BONDS.
`(a) In General- For purposes of part IV of subchapter B (relating
to tax exemption requirements for State and local bonds), the term
`exempt facility bond' includes any recovery zone facility bond.
`(b) Recovery Zone Facility Bond-
`(1) IN GENERAL- For purposes of this section, the term
`recovery zone facility bond' means any bond issued as part
of an issue if--
`(A) 95 percent or more of the net proceeds (as
defined in section 150(a)(3)) of such issue are to be
used for recovery zone property,
`(B) such bond is issued before January 1, 2011, and
`(C) the issuer designates such bond for purposes of
this section.
`(2) LIMITATION ON AMOUNT OF BONDS DESIGNATED- The maximum
aggregate face amount of bonds which may be designated by
any issuer under paragraph (1) shall not exceed the amount
of recovery zone facility bond limitation allocated to such
issuer under section 1400U-1.
`(c) Recovery Zone Property- For purposes of this section--
`(1) IN GENERAL- The term `recovery zone property' means any
property to which section 168 applies (or would apply but
for section 179) if--
`(A) such property was acquired by the taxpayer by
purchase (as defined in section 179(d)(2)) after the
date on which the designation of the recovery zone
took effect,
`(B) the original use of which in the recovery zone
commences with the taxpayer, and
`(C) substantially all of the use of which is in the
recovery zone and is in the active conduct of a
qualified business by the taxpayer in such zone.
`(2) QUALIFIED BUSINESS- The term `qualified business' means
any trade or business except that--
`(A) the rental to others of real property located in
a recovery zone shall be treated as a qualified
business only if the property is not residential
rental property (as defined in section 168(e)(2)), and
`(B) such term shall not include any trade or business
consisting of the operation of any facility described
in section 144(c)(6)(B).
`(3) SPECIAL RULES FOR SUBSTANTIAL RENOVATIONS AND
SALE-LEASEBACK- Rules similar to the rules of subsections
(a)(2) and (b) of section 1397D shall apply for purposes of
this subsection.
`(d) Nonapplication of Certain Rules- Sections 146 (relating to
volume cap) and 147(d) (relating to acquisition of existing
property not permitted) shall not apply to any recovery zone
facility bond.'.
(b) Clerical Amendment- The table of parts for subchapter Y of
chapter 1 of such Code is amended by adding at the end the
following new item:
`Part III. Recovery Zone Bonds.'.
(c) Effective Date- The amendments made by this section shall
apply to obligations issued after the date of the enactment of
this Act.
SEC. 1532. TRIBAL ECONOMIC DEVELOPMENT BONDS.
(a) In General- Section 7871 is amended by adding at the end the
following new subsection:
`(f) Tribal Economic Development Bonds-
`(1) ALLOCATION OF LIMITATION-
`(A) IN GENERAL- The Secretary shall allocate the
national tribal economic development bond limitation
among the Indian tribal governments in such manner as
the Secretary, in consultation with the Secretary of
the Interior, determines appropriate.
`(B) NATIONAL LIMITATION- There is a national tribal
economic development bond limitation of $2,000,000,000.
`(2) BONDS TREATED AS EXEMPT FROM TAX- In the case of a
tribal economic development bond--
`(A) notwithstanding subsection (c), such bond shall
be treated for purposes of this title in the same
manner as if such bond were issued by a State, and
`(B) section 146 shall not apply.
`(3) TRIBAL ECONOMIC DEVELOPMENT BOND-
`(A) IN GENERAL- For purposes of this section, the
term `tribal economic development bond' means any bond
issued by an Indian tribal government--
`(i) the interest on which is not exempt from
tax under section 103 by reason of subsection
(c) (determined without regard to this
subsection) but would be so exempt if issued by
a State or local government, and
`(ii) which is designated by the Indian tribal
government as a tribal economic development bond
for purposes of this subsection.
`(B) EXCEPTIONS- The term tribal economic development
bond shall not include any bond issued as part of an
issue if any portion of the proceeds of such issue are
used to finance--
`(i) any portion of a building in which class II
or class III gaming (as defined in section 4 of
the Indian Gaming Regulatory Act) is conducted
or housed or any other property actually used in
the conduct of such gaming, or
`(ii) any facility located outside the Indian
reservation (as defined in section 168(j)(6)).
`(C) LIMITATION ON AMOUNT OF BONDS DESIGNATED- The
maximum aggregate face amount of bonds which may be
designated by any Indian tribal government under
subparagraph (A) shall not exceed the amount of
national tribal economic development bond limitation
allocated to such government under paragraph (1).'.
(b) Study- The Secretary of the Treasury, or the Secretary's
delegate, shall conduct a study of the effects of the amendment
made by subsection (a). Not later than 1 year after the date of
the enactment of this Act, the Secretary of the Treasury, or the
Secretary's delegate, shall report to Congress on the results of
the studies conducted under this paragraph, including the
Secretary's recommendations regarding such amendment.
(c) Effective Date- The amendment made by subsection (a) shall
apply to obligations issued after the date of the enactment of
this Act.
/PART 5--REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS/
SEC. 1541. REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS.
Section 3402 is amended by striking subsection (t).
Subtitle G--Energy Incentives
/PART 1--RENEWABLE ENERGY INCENTIVES/
SEC. 1601. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM
CERTAIN RENEWABLE RESOURCES.
(a) In General- Subsection (d) of section 45 is amended--
(1) by striking `2010' in paragraph (1) and inserting `2013',
(2) by striking `2011' each place it appears in paragraphs
(2), (3), (4), (6), (7) and (9) and inserting `2014', and
(3) by striking `2012' in paragraph (11)(B) and inserting
`2014'.
(b) Technical Amendment- Paragraph (5) of section 45(d) is amended
by striking `and before' and all that follows and inserting ` and
before October 3, 2008.'.
(c) Effective Date-
(1) IN GENERAL- The amendments made by subsection (a) shall
apply to property placed in service after the date of the
enactment of this Act.
(2) TECHNICAL AMENDMENT- The amendment made by subsection
(b) shall take effect as if included in section 102 of the
Energy Improvement and Extension Act of 2008.
SEC. 1602. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT.
(a) In General- Subsection (a) of section 48 is amended by adding
at the end the following new paragraph:
`(5) ELECTION TO TREAT QUALIFIED FACILITIES AS ENERGY PROPERTY-
`(A) IN GENERAL- In the case of any qualified
investment credit facility placed in service in 2009
or 2010--
`(i) such facility shall be treated as energy
property for purposes of this section, and
`(ii) the energy percentage with respect to such
property shall be 30 percent.
`(B) DENIAL OF PRODUCTION CREDIT- No credit shall be
allowed under section 45 for any taxable year with
respect to any qualified investment credit facility.
`(C) QUALIFIED INVESTMENT CREDIT FACILITY- For
purposes of this paragraph, the term `qualified
investment credit facility' means any facility
described in paragraph (1), (2), (3), (4), (6), (7),
(9), or (11) of section 45(d) if no credit has been
allowed under section 45 with respect to such facility
and the taxpayer makes an irrevocable election to have
this paragraph apply to such facility.'.
(b) Effective Date- The amendments made by this section shall
apply to facilities placed in service after December 31, 2008.
SEC. 1603. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE
ENERGY PROPERTY.
(a) Repeal of Limitation on Credit for Qualified Small Wind Energy
Property- Paragraph (4) of section 48(c) is amended by striking
subparagraph (B) and by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C).
(b) Repeal of Limitation on Property Financed by Subsidized Energy
Financing-
(1) IN GENERAL- Subsection (a) of section 48 is amended by
striking paragraph (4).
(2) CONFORMING AMENDMENTS-
(A) Section 25C(e)(1) is amended by striking `(8), and
(9)' and inserting `and (8)'.
(B) Section 25D(e) is amended by striking paragraph (9).
(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 Reconciliation Act of 1990).
(2) CONFORMING AMENDMENTS- The amendments made by subsection
(b)(2) shall apply to taxable years beginning after December
31, 2008.
SEC. 1604. COORDINATION WITH RENEWABLE ENERGY GRANTS.
Section 48 is amended by adding at the end the following new
subsection:
`(d) Coordination With Department of Energy Grants- In the case of
any property with respect to which the Secretary of Energy makes a
grant under section 1721 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
property by reason of such credit.
`(3) TREATMENT OF GRANTS- Any such grant shall--
`(A) not be includible in the gross income of the
taxpayer, 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).'.
/PART 2--INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS
AND QUALIFIED ENERGY CONSERVATION BONDS/
SEC. 1611. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN RENEWABLE
ENERGY BONDS.
Subsection (c) of section 54C is amended by adding at the end the
following new paragraph:
`(4) ADDITIONAL LIMITATION- The national new clean renewable
energy bond limitation shall be increased by $1,600,000,000.
Such increase shall be allocated by the Secretary consistent
with the rules of paragraphs (2) and (3).'.
SEC. 1612. INCREASED LIMITATION AND EXPANSION OF QUALIFIED ENERGY
CONSERVATION BONDS.
(a) Increased Limitation- Subsection (e) of section 54D is amended
by adding at the end the following new paragraph:
`(4) ADDITIONAL LIMITATION- The national qualified energy
conservation bond limitation shall be increased by
$2,400,000,000. Such increase shall be allocated by the
Secretary consistent with the rules of paragraphs (1), (2),
and (3).'.
(b) Loans and Grants to Implement Green Community Programs-
(1) IN GENERAL- Subparagraph (A) of section 54D(f)(1) is
amended by inserting `(or loans or grants for capital
expenditures to implement any green community program)'
after `Capital expenditures'.
(2) BONDS TO IMPLEMENT GREEN COMMUNITY PROGRAMS NOT TREATED
AS PRIVATE ACTIVITY BONDS FOR PURPOSES OF LIMITATIONS ON
QUALIFIED ENERGY CONSERVATION BONDS - Subsection (e) of
section 54D is amended by adding at the end the following
new paragraph:
`(4) BONDS TO IMPLEMENT GREEN COMMUNITY PROGRAMS NOT TREATED
AS PRIVATE ACTIVITY BONDS- For purposes of paragraph (3) and
subsection (f)(2), a bond shall not be treated as a private
activity bond solely because proceeds of the issue of which
such bond is a part are to be used for loans or grants for
capital expenditures to implement any green community program.'.
(c) Effective Date- The amendments made by this section shall
apply to obligations issued after the date of the enactment of
this Act.
/PART 3--ENERGY CONSERVATION INCENTIVES/
SEC. 1621. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS
ENERGY PROPERTY.
(a) In General- Section 25C is amended by striking subsections (a)
and (b) and inserting the following new subsections:
`(a) Allowance of Credit- In the case of an individual, there
shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to 30 percent of the
sum of--
`(1) the amount paid or incurred by the taxpayer during such
taxable year for qualified energy efficiency improvements, and
`(2) the amount of the residential energy property
expenditures paid or incurred by the taxpayer during such
taxable year.
`(b) Limitation- The aggregate amount of the credits allowed under
this section for taxable years beginning in 2009 and 2010 with
respect to any taxpayer shall not exceed $1,500.'.
(b) Extension- Section 25C(g)(2) is amended by striking `December
31, 2009' and inserting `December 31, 2010'.
(c) Effective Date- The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 1622. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT
PROPERTY.
(a) Removal of Credit Limitation for Property Placed in Service-
(1) IN GENERAL- Paragraph (1) of section 25D(b) is amended
to read as follows:
`(1) MAXIMUM CREDIT FOR FUEL CELLS- In the case of any
qualified fuel cell property expenditure, the credit allowed
under subsection (a) (determined without regard to
subsection (c)) for any taxable year shall not exceed $500
with respect to each half kilowatt of capacity of the
qualified fuel cell property (as defined in section
48(c)(1)) to which such expenditure relates.'.
(2) CONFORMING AMENDMENT- Paragraph (4) of section 25D(e) is
amended--
(A) by striking all that precedes subparagraph (B) and
inserting the following:
`(4) FUEL CELL EXPENDITURE LIMITATIONS IN CASE OF JOINT
OCCUPANCY- In the case of any dwelling unit with respect to
which qualified fuel cell property expenditures are made and
which is jointly occupied and used during any calendar year
as a residence by two or more individuals the following
rules shall apply:
`(A) MAXIMUM EXPENDITURES FOR FUEL CELLS- The maximum
amount of such expenditures which may be taken into
account under subsection (a) by all such individuals
with respect to such dwelling unit during such
calendar year shall be $1,667 in the case of each half
kilowatt of capacity of qualified fuel cell property
(as defined in section 48(c)(1)) with respect to which
such expenditures relate.', and
(B) by striking subparagraph (C).
(b) Effective Date- The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 1623. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL
VEHICLE REFUELING PROPERTY.
(a) In General- Section 30C(e) is amended by adding at the end the
following new paragraph:
`(6) SPECIAL RULE FOR PROPERTY PLACED IN SERVICE DURING 2009
AND 2010- In the case of property placed in service in
taxable years beginning after December 31, 2008, and before
January 1, 2011--
`(A) in the case of any such property which does not
relate to hydrogen--
`(i) subsection (a) shall be applied by
substituting `50 percent' for `30 percent',
`(ii) subsection (b)(1) shall be applied by
substituting `$50,000' for `$30,000', and
`(iii) subsection (b)(2) shall be applied by
substituting `$2,000' for `$1,000', and
`(B) in the case of any such property which relates to
hydrogen, subsection (b) shall be applied by
substituting `$200,000' for `$30,000'.'.
(b) Effective Date- The amendment made by this section shall apply
to taxable years beginning after December 31, 2008.
/PART 4--ENERGY RESEARCH INCENTIVES/
SEC. 1631. INCREASED RESEARCH CREDIT FOR ENERGY RESEARCH.
(a) In General- Section 41 is amended by redesignating subsection
(h) as subsection (i) and by inserting after subsection (g) the
following new subsection:
`(h) Energy Research Credit- In the case of any taxable year
beginning in 2009 or 2010--
`(1) IN GENERAL- The credit determined under subsection
(a)(1) shall be increased by 20 percent of the qualified
energy research expenses for the taxable year.
`(2) QUALIFIED ENERGY RESEARCH EXPENSES- For purposes of
this subsection, the term `qualified energy research
expenses' means so much of the taxpayer's qualified research
expenses as are related to the fields of fuel cells and
battery technology, renewable energy, energy conservation
technology, efficient transmission and distribution of
electricity, and carbon capture and sequestration.
`(3) COORDINATION WITH OTHER RESEARCH CREDITS-
`(A) INCREMENTAL CREDIT- The amount of qualified
energy research expenses taken into account under
subsection (a)(1)(A) shall not exceed the base amount.
`(B) ALTERNATIVE SIMPLIFIED CREDIT- For purposes of
subsection (c)(5), the amount of qualified energy
research expenses taken into account for the taxable
year for which the credit is being determined shall
not exceed--
`(i) in the case of subsection (c)(5)(A), 50
percent of the average qualified research
expenses for the 3 taxable years preceding the
taxable year for which the credit is being
determined, and
`(ii) in the case of subsection (c)(5)(B)(ii), zero.
`(C) BASIC RESEARCH AND ENERGY RESEARCH CONSORTIUM
PAYMENTS- Any amount taken into account under
paragraph (1) shall not be taken into account under
paragraph (2) or (3) of subsection (a).'.
(b) Conforming Amendment- Subparagraph (B) of section 41(i)(1)(B),
as redesignated by subsection (a), is amended by inserting `(in
the case of the increase in the credit determined under subsection
(h), December 31, 2010)' after `December 31, 2009'.
(c) Effective Date- The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
Subtitle H--Other Provisions
/PART 1--APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED
WITH CERTAIN TAX-FAVORED BONDS/
SEC. 1701. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS
FINANCED WITH CERTAIN TAX-FAVORED BONDS.
Subchapter IV of chapter 31 of the title 40, United States Code,
shall apply to projects financed with the proceeds of--
(1) any qualified clean renewable energy bond (as defined in
section 54C of the Internal Revenue Code of 1986) issued
after the date of the enactment of this Act,
(2) any qualified energy conservation bond (as defined in
section 54D of the Internal Revenue Code of 1986) issued
after the date of the enactment of this Act,
(3) any qualified zone academy bond (as defined in section
54E of the Internal Revenue Code of 1986) issued after the
date of the enactment of this Act,
(4) any qualified school construction bond (as defined in
section 54F of the Internal Revenue Code of 1986), and
(5) any recovery zone economic development bond (as defined
in section 1400U-2 of the Internal Revenue Code of 1986).
/PART 2--GRANTS TO PROVIDE FINANCING FOR LOW-INCOME HOUSING/
SEC. 1711. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN
LIEU OF LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR 2009.
(a) In General- The Secretary of the Treasury shall make a grant
to the housing credit agency of each State in an amount equal to
such State's low-income housing grant election amount.
(b) Low-Income Housing Grant Election Amount- For purposes of this
section, the term `low-income housing grant election amount'
means, with respect to any State, such amount as the State may
elect which does not exceed 85 percent of the product of--
(1) the sum of--
(A) 100 percent of the State housing credit ceiling
for 2009 which is attributable to amounts described in
clauses (i) and (iii) of section 42(h)(3)(C) of the
Internal Revenue Code of 1986, and
(B) 40 percent of the State housing credit ceiling for
2009 which is attributable to amounts described in
clauses (ii) and (iv) of such section, multiplied by
(2) 10.
(c) Subawards for Low-Income Buildings-
(1) IN GENERAL- A State housing credit agency receiving a
grant under this section shall use such grant to make
subawards to finance the construction or acquisition and
rehabilitation of qualified low-income buildings. A subaward
under this section may be made to finance a qualified
low-income building with or without an allocation under
section 42 of the Internal Revenue Code of 1986, except that
a State housing credit agency may make subawards to finance
qualified low-income buildings without an allocation only if
it makes a determination that such use will increase the
total funds available to the State to build and rehabilitate
affordable housing. In complying with such determination
requirement, a State housing credit agency shall establish a
process in which applicants that are allocated credits are
required to demonstrate good faith efforts to obtain
investment commitments for such credits before the agency
makes such subawards.
(2) SUBAWARDS SUBJECT TO SAME REQUIREMENTS AS LOW-INCOME
HOUSING CREDIT ALLOCATIONS- Any such subaward with respect
to any qualified low-income building shall be made in the
same manner and shall be subject to the same limitations
(including rent, income, and use restrictions on such
building) as an allocation of housing credit dollar amount
allocated by such State housing credit agency under section
42 of the Internal Revenue Code of 1986, except that such
subawards shall not be limited by, or otherwise affect
(except as provided in subsection (h)(3)(J) of such
section), the State housing credit ceiling applicable to
such agency.
(3) COMPLIANCE AND ASSET MANAGEMENT- The State housing
credit agency shall perform asset management functions to
ensure compliance with section 42 of the Internal Revenue
Code of 1986 and the long-term viability of buildings funded
by any subaward under this section. The State housing credit
agency may collect reasonable fees from a subaward recipient
to cover expenses associated with the performance of its
duties under this paragraph. The State housing credit agency
may retain an agent or other private contractor to satisfy
the requirements of this paragraph.
(4) RECAPTURE- The State housing credit agency shall impose
conditions or restrictions, including a requirement
providing for recapture, on any subaward under this section
so as to assure that the building with respect to which such
subaward is made remains a qualified low-income building
during the compliance period. Any such recapture shall be
payable to the Secretary of the Treasury for deposit in the
general fund of the Treasury and may be enforced by means of
liens or such other methods as the Secretary of the Treasury
determines appropriate.
(d) Return of Unused Grant Funds- Any grant funds not used to make
subawards under this section before January 1, 2011, shall be
returned to the Secretary of the Treasury on such date. Any
subawards returned to the State housing credit agency on or after
such date shall be promptly returned to the Secretary of the
Treasury. Any amounts returned to the Secretary of the Treasury
under this subsection shall be deposited in the general fund of
the Treasury.
(e) Definitions- Any term used in this section which is also used
in section 42 of the Internal Revenue Code of 1986 shall have the
same meaning for purposes of this section as when used in such
section 42. Any reference in this section to the Secretary of the
Treasury shall be treated as including the Secretary's delegate.
(f) Appropriations- There is hereby appropriated to the Secretary
of the Treasury such sums as may be necessary to carry out this
section.
/PART 3--GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS/
SEC. 1721. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX
CREDITS.
(a) In General- Upon application, the Secretary of Energy shall,
within 60 days of the application and subject to the requirements
of this section, provide a grant to each person who places in
service specified energy property during 2009 or 2010 to reimburse
such person for a portion of the expense of such facility as
provided in subsection (b).
(b) Grant Amount-
(1) IN GENERAL- The amount of the grant under subsection (a)
with respect to any specified energy property shall be the
applicable percentage of the basis of such facility.
(2) APPLICABLE PERCENTAGE- For purposes of paragraph (1),
the term `applicable percentage' means--
(A) 30 percent in the case of any property described
in paragraphs (1) through (4) of subsection (c), and
(B) 10 percent in the case of any other property.
(3) DOLLAR LIMITATIONS- In the case of property described in
paragraph (2), (6), or (7) of subsection (c), the amount of
any grant under this section with respect to such property
shall not exceed the limitation described in section
48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal
Revenue Code of 1986, respectively, with respect to such
property.
(c) Specified Energy Property- For purposes of this section, the
term `specified energy property' means any of the following:
(1) QUALIFIED FACILITIES- Any facility described in
paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of
section 45(d) of the Internal Revenue Code of 1986.
(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 qualified
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 HEATPUMP PROPERTY- Any property described in
clause (vii) of section 48(a)(3)(A) of such Code.
(d) Application of Certain Rules- In making grants under this
section, the Secretary of Energy shall apply rules similar to the
rules of section 50 of the Internal Revenue Code of 1986. In
applying such rules, if the facility is disposed of, or otherwise
ceases to be a qualified renewable energy facility, the Secretary
of Energy shall provide for the recapture of the appropriate
percentage of the grant amount in such manner as the Secretary of
Energy determines appropriate.
(e) Exception for Certain Non-Taxpayers- The Secretary of Energy
shall not make any grant under this section to any Federal, State,
or local government (or any political subdivision, agency, or
instrumentality thereof) or 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.
(f) Definitions- Terms used in this section which are also used in
section 45 or 48 of the Internal Revenue Code of 1986 shall have
the same meaning for purposes of this section as when used in such
section 45 or 48. Any reference in this section to the Secretary
of the Treasury shall be treated as including the Secretary's
delegate.
(g) Coordination Between Departments of Treasury and Energy- The
Secretary of the Treasury shall provide the Secretary of Energy
with such technical assistance as the Secretary of Energy may
require in carrying out this section. The Secretary of Energy
shall provide the Secretary of the Treasury with such information
as the Secretary of the Treasury may require in carrying out the
amendment made by section 1604.
(h) Appropriations- There is hereby appropriated to the Secretary
of Energy such sums as may be necessary to carry out this section.
(i) Termination- The Secretary of Energy shall not make any grant
to any person under this section unless the application of such
person for such grant is received before October 1, 2011.
/PART 4--STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF THIS ACT/
SEC. 1731. STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF
THIS ACT.
On February 1, 2010, and every 3 months thereafter in calendar
year 2010, the Comptroller General of the United States shall
submit to the Committee on Ways and Means a written report on the
most recent national (and, where available, State-by-State)
information on--
(1) the economic effects of this Act;
(2) the employment effects of this Act, including--
(A) a comparison of the number of jobs preserved and
the number of jobs created as a result of this Act; and
(B) a comparison of the numbers of jobs preserved and
the number of jobs created in each of the public and
private sectors;
(3) the share of tax and non-tax expenditures provided under
this Act that were spent or saved, by group and income class;
(4) how the funds provided to States under this Act have
been spent, including a breakdown of--
(A) funds used for services provided to citizens; and
(B) wages and other compensation for public employees; and
(5) a description of any funds made available under this Act
that remain unspent, and the reasons why.
TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
SEC. 2000. SHORT TITLE.
This title may be cited as the `Assistance for Unemployed Workers
and Struggling Families Act'.
Subtitle A--Unemployment Insurance
SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.
(a) In General- Section 4007 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by
section 4 of the Unemployment Compensation Extension Act of 2008
(Public Law 110-449; 122 Stat. 5015), is amended--
(1) by striking `March 31, 2009' each place it appears and
inserting `December 31, 2009';
(2) in the heading for subsection (b)(2), by striking `MARCH
31, 2009' and inserting `DECEMBER 31, 2009'; and
(3) in subsection (b)(3), by striking `August 27, 2009' and
inserting `May 31, 2010'.
(b) Financing Provisions- Section 4004 of such Act is amended by
adding at the end the following:
`(e) Transfer of Funds- Notwithstanding any other provision of
law, the Secretary of the Treasury shall transfer from the general
fund of the Treasury (from funds not otherwise appropriated)--
`(1) to the extended unemployment compensation account (as
established by section 905 of the Social Security Act) such
sums as the Secretary of Labor estimates to be necessary to
make payments to States under this title by reason of the
amendments made by section 2001(a) of the Assistance for
Unemployed Workers and Struggling Families Act; and
`(2) to the employment security administration account (as
established by section 901 of the Social Security Act) such
sums as the Secretary of Labor estimates to be necessary for
purposes of assisting States in meeting administrative costs
by reason of the amendments referred to in paragraph (1).
There are appropriated from the general fund of the Treasury,
without fiscal year limitation, the sums referred to in the
preceding sentence and such sums shall not be required to be repaid.'.
SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS.
(a) Federal-State Agreements- Any State which desires to do so may
enter into and participate in an agreement under this section with
the Secretary of Labor (hereinafter in this section referred to as
the `Secretary'). Any State which is a party to an agreement under
this section may, upon providing 30 days' written notice to the
Secretary, terminate such agreement.
(b) Provisions of Agreement-
(1) ADDITIONAL COMPENSATION- Any agreement under this
section shall provide that the State agency of the State
will make payments of regular compensation to individuals in
amounts and to the extent that they would be determined if
the State law of the State were applied, with respect to any
week for which the individual is (disregarding this section)
otherwise entitled under the State law to receive regular
compensation, as if such State law had been modified in a
manner such that the amount of regular compensation
(including dependents' allowances) payable for any week
shall be equal to the amount determined under the State law
(before the application of this paragraph) plus an
additional $25.
(2) ALLOWABLE METHODS OF PAYMENT- Any additional
compensation provided for in accordance with paragraph (1)
shall be payable either--
(A) as an amount which is paid at the same time and in
the same manner as any regular compensation otherwise
payable for the week involved; or
(B) at the option of the State, by payments which are
made separately from, but on the same weekly basis as,
any regular compensation otherwise payable.
(c) Nonreduction Rule- An agreement under this section shall not
apply (or shall cease to apply) with respect to a State upon a
determination by the Secretary that the method governing the
computation of regular compensation under the State law of that
State has been modified in a manner such that--
(1) the average weekly benefit amount of regular
compensation which will be payable during the period of the
agreement (determined disregarding any additional amounts
attributable to the modification described in subsection
(b)(1)) will be less than
(2) the average weekly benefit amount of regular
compensation which would otherwise have been payable during
such period under the State law, as in effect on December
31, 2008.
(d) Payments to States-
(1) IN GENERAL-
(A) FULL REIMBURSEMENT- There shall be paid to each
State which has entered into an agreement under this
section an amount equal to 100 percent of--
(i) the total amount of additional compensation
(as described in subsection (b)(1)) paid to
individuals by the State pursuant to such
agreement; and
(ii) any additional administrative expenses
incurred by the State by reason of such
agreement (as determined by the Secretary).
(B) TERMS OF PAYMENTS- Sums payable to any State by
reason of such State's having an agreement under this
section shall be payable, either in advance or by way
of reimbursement (as determined by the Secretary), in
such amounts as the Secretary estimates the State will
be entitled to receive under this section for each
calendar month, reduced or increased, as the case may
be, by any amount by which the Secretary finds that
his estimates for any prior calendar month were
greater or less than the amounts which should have
been paid to the State. Such estimates may be made on
the basis of such statistical, sampling, or other
method as may be agreed upon by the Secretary and the
State agency of the State involved.
(2) CERTIFICATIONS- The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each
State the sums payable to such State under this section.
(3) APPROPRIATION- There are appropriated from the general
fund of the Treasury, without fiscal year limitation, such
sums as may be necessary for purposes of this subsection.
(e) Applicability-
(1) IN GENERAL- An agreement entered into under this section
shall apply to weeks of unemployment--
(A) beginning after the date on which such agreement
is entered into; and
(B) ending before January 1, 2010.
(2) TRANSITION RULE FOR INDIVIDUALS REMAINING ENTITLED TO
REGULAR COMPENSATION AS OF JANUARY 1, 2010- In the case of
any individual who, as of the date specified in paragraph
(1)(B), has not yet exhausted all rights to regular
compensation under the State law of a State with respect to
a benefit year that began before such date, additional
compensation (as described in subsection (b)(1)) shall
continue to be payable to such individual for any week
beginning on or after such date for which the individual is
otherwise eligible for regular compensation with respect to
such benefit year.
(3) TERMINATION- Notwithstanding any other provision of this
subsection, no additional compensation (as described in
subsection (b)(1)) shall be payable for any week beginning
after June 30, 2010.
(f) Fraud and Overpayments- The provisions of section 4005 of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 122
Stat. 2356) shall apply with respect to additional compensation
(as described in subsection (b)(1)) to the same extent and in the
same manner as in the case of emergency unemployment compensation.
(g) Application to Other Unemployment Benefits-
(1) IN GENERAL- Each agreement under this section shall
include provisions to provide that the purposes of the
preceding provisions of this section shall be applied with
respect to unemployment benefits described in subsection
(h)(3) to the same extent and in the same manner as if those
benefits were regular compensation.
(2) ELIGIBILITY AND TERMINATION RULES- Additional
compensation (as described in subsection (b)(1))--
(A) shall not be payable, pursuant to this subsection,
with respect to any unemployment benefits described in
subsection (h)(3) for any week beginning on or after
the date specified in subsection (e)(1)(B), except in
the case of an individual who was eligible to receive
additional compensation (as so described) in
connection with any regular compensation or any
unemployment benefits described in subsection (h)(3)
for any period of unemployment ending before such
date; and
(B) shall in no event be payable for any week
beginning after the date specified in subsection (e)(3).
(h) Disregard of Additional Compensation for Purposes of Medicaid
and SCHIP- The monthly equivalent of any additional compensation
paid under this section shall be disregarded in considering the
amount of income of an individual for any purposes under title XIX
and title XXI of the Social Security Act.
(i) Definitions- For purposes of this section--
(1) the terms `compensation', `regular compensation',
`benefit year', `State', `State agency', `State law', and
`week' have the respective meanings given such terms under
section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note);
(2) the term `emergency unemployment compensation' means
emergency unemployment compensation under title IV of the
Supplemental Appropriations Act, 2008 (Public Law 110-252;
122 Stat. 2353); and
(3) any reference to unemployment benefits described in this
paragraph shall be considered to refer to--
(A) extended compensation (as defined by section 205
of the Federal-State Extended Unemployment
Compensation Act of 1970); and
(B) unemployment compensation (as defined by section
85(b) of the Internal Revenue Code of 1986) provided
under any program administered by a State under an
agreement with the Secretary.
SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT COMPENSATION
MODERNIZATION.
(a) In General- Section 903 of the Social Security Act (42 U.S.C.
1103) is amended by adding at the end the following:
`Special Transfers in Fiscal Years 2009, 2010, and 2011 for
Modernization
`(f)(1)(A) In addition to any other amounts, the Secretary of
Labor shall provide for the making of unemployment compensation
modernization incentive payments (hereinafter `incentive
payments') to the accounts of the States in the Unemployment Trust
Fund, by transfer from amounts reserved for that purpose in the
Federal unemployment account, in accordance with succeeding
provisions of this subsection.
`(B) The maximum incentive payment allowable under this subsection
with respect to any State shall, as determined by the Secretary of
Labor, be equal to the amount obtained by multiplying
$7,000,000,000 by the same ratio as would apply under subsection
(a)(2)(B) for purposes of determining such State's share of any
excess amount (as described in subsection (a)(1)) that would have
been subject to transfer to State accounts, as of October 1, 2008,
under the provisions of subsection (a).
`(C) Of the maximum incentive payment determined under
subparagraph (B) with respect to a State--
`(i) one-third shall be transferred to the account of such
State upon a certification under paragraph (4)(B) that the
State law of such State meets the requirements of paragraph
(2); and
`(ii) the remainder shall be transferred to the account of
such State upon a certification under paragraph (4)(B) that
the State law of such State meets the requirements of
paragraph (3).
`(2) The State law of a State meets the requirements of this
paragraph if such State law--
`(A) uses a base period that includes the most recently
completed calendar quarter before the start of the benefit
year for purposes of determining eligibility for
unemployment compensation; or
`(B) provides that, in the case of an individual who would
not otherwise be eligible for unemployment compensation
under the State law because of the use of a base period that
does not include the most recently completed calendar
quarter before the start of the benefit year, eligibility
shall be determined using a base period that includes such
calendar quarter.
`(3) The State law of a State meets the requirements of this
paragraph if such State law includes provisions to carry out at
least 2 of the following subparagraphs:
`(A) An individual shall not be denied regular unemployment
compensation under any State law provisions relating to
availability for work, active search for work, or refusal to
accept work, solely because such individual is seeking only
part-time work (as defined by the Secretary of Labor),
except that the State law provisions carrying out this
subparagraph may exclude an individual if a majority of the
weeks of work in such individual's base period do not
include part-time work (as so defined).
`(B) An individual shall not be disqualified from regular
unemployment compensation for separating from employment if
that separation is for any compelling family reason. For
purposes of this subparagraph, the term `compelling family
reason' means the following:
`(i) Domestic violence, verified by such reasonable
and confidential documentation as the State law may
require, which causes the individual reasonably to
believe that such individual's continued employment
would jeopardize the safety of the individual or of
any member of the individual's immediate family (as
defined by the Secretary of Labor).
`(ii) The illness or disability of a member of the
individual's immediate family (as those terms are
defined by the Secretary of Labor).
`(iii) The need for the individual to accompany such
individual's spouse--
`(I) to a place from which it is impractical for
such individual to commute; and
`(II) due to a change in location of the
spouse's employment.
`(C) Weekly unemployment compensation is payable under this
subparagraph to any individual who is unemployed (as
determined under the State unemployment compensation law),
has exhausted all rights to regular unemployment
compensation under the State law, and is enrolled and making
satisfactory progress in a State-approved training program
or in a job training program authorized under the Workforce
Investment Act of 1998. Such programs shall prepare
individuals who have been separated from a declining
occupation, or who have been involuntarily and indefinitely
separated from employment as a result of a permanent
reduction of operations at the individual's place of
employment, for entry into a high-demand occupation. The
amount of unemployment compensation payable under this
subparagraph to an individual for a week of unemployment
shall be equal to the individual's average weekly benefit
amount (including dependents' allowances) for the most
recent benefit year, and the total amount of unemployment
compensation payable under this subparagraph to any
individual shall be equal to at least 26 times the
individual's average weekly benefit amount (including
dependents' allowances) for the most recent benefit year.
`(D) Dependents' allowances are provided, in the case of any
individual who is entitled to receive regular unemployment
compensation and who has any dependents (as defined by State
law), in an amount equal to at least $15 per dependent per
week, subject to any aggregate limitation on such allowances
which the State law may establish (but which aggregate
limitation on the total allowance for dependents paid to an
individual may not be less than $50 for each week of
unemployment or 50 percent of the individual's weekly
benefit amount for the benefit year, whichever is less).
`(4)(A) Any State seeking an incentive payment under this
subsection shall submit an application therefor at such time, in
such manner, and complete with such information as the Secretary
of Labor may within 60 days after the date of the enactment of
this subsection prescribe (whether by regulation or otherwise),
including information relating to compliance with the requirements
of paragraph (2) or (3), as well as how the State intends to use
the incentive payment to improve or strengthen the State's
unemployment compensation program. The Secretary of Labor shall,
within 30 days after receiving a complete application, notify the
State agency of the State of the Secretary's findings with respect
to the requirements of paragraph (2) or (3) (or both).
`(B)(i) If the Secretary of Labor finds that the State law
provisions (disregarding any State law provisions which are not
then currently in effect as permanent law or which are subject to
discontinuation) meet the requirements of paragraph (2) or (3), as
the case may be, the Secretary of Labor shall thereupon make a
certification to that effect to the Secretary of the Treasury,
together with a certification as to the amount of the incentive
payment to be transferred to the State account pursuant to that
finding. The Secretary of the Treasury shall make the appropriate
transfer within 7 days after receiving such certification.
`(ii) For purposes of clause (i), State law provisions which are
to take effect within 12 months after the date of their
certification under this subparagraph shall be considered to be in
effect as of the date of such certification.
`(C)(i) No certification of compliance with the requirements of
paragraph (2) or (3) may be made with respect to any State whose
State law is not otherwise eligible for certification under
section 303 or approvable under section 3304 of the Federal
Unemployment Tax Act.
`(ii) No certification of compliance with the requirements of
paragraph (3) may be made with respect to any State whose State
law is not in compliance with the requirements of paragraph (2).
`(iii) No application under subparagraph (A) may be considered if
submitted before the date of the enactment of this subsection or
after the latest date necessary (as specified by the Secretary of
Labor) to ensure that all incentive payments under this subsection
are made before October 1, 2011.
`(5)(A) Except as provided in subparagraph (B), any amount
transferred to the account of a State under this subsection may be
used by such State only in the payment of cash benefits to
individuals with respect to their unemployment (including for
dependents' allowances and for unemployment compensation under
paragraph (3)(C)), exclusive of expenses of administration.
`(B) A State may, subject to the same conditions as set forth in
subsection (c)(2) (excluding subparagraph (B) thereof, and deeming
the reference to `subsections (a) and (b)' in subparagraph (D)
thereof to include this subsection), use any amount transferred to
the account of such State under this subsection for the
administration of its unemployment compensation law and public
employment offices.
`(6) Out of any money in the Federal unemployment account not
otherwise appropriated, the Secretary of the Treasury shall
reserve $7,000,000,000 for incentive payments under this
subsection. Any amount so reserved shall not be taken into account
for purposes of any determination under section 902, 910, or 1203
of the amount in the Federal unemployment account as of any given
time. Any amount so reserved for which the Secretary of the
Treasury has not received a certification under paragraph (4)(B)
by the deadline described in paragraph (4)(C)(iii) shall, upon the
close of fiscal year 2011, become unrestricted as to use as part
of the Federal unemployment account.
`(7) For purposes of this subsection, the terms `benefit year',
`base period', and `week' have the respective meanings given such
terms under section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
`Special Transfer in Fiscal Year 2009 for Administration
`(g)(1) In addition to any other amounts, the Secretary of the
Treasury shall transfer from the employment security
administration account to the account of each State in the
Unemployment Trust Fund, within 30 days after the date of the
enactment of this subsection, the amount determined with respect
to such State under paragraph (2).
`(2) The amount to be transferred under this subsection to a State
account shall (as determined by the Secretary of Labor and
certified by such Secretary to the Secretary of the Treasury) be
equal to the amount obtained by multiplying $500,000,000 by the
same ratio as determined under subsection (f)(1)(B) with respect
to such State.
`(3) Any amount transferred to the account of a State as a result
of the enactment of this subsection may be used by the State
agency of such State only in the payment of expenses incurred by
it for--
`(A) the administration of the provisions of its State law
carrying out the purposes of subsection (f)(2) or any
subparagraph of subsection (f)(3);
`(B) improved outreach to individuals who might be eligible
for regular unemployment compensation by virtue of any
provisions of the State law which are described in
subparagraph (A);
`(C) the improvement of unemployment benefit and
unemployment tax operations, including responding to
increased demand for unemployment compensation; and
`(D) staff-assisted reemployment services for unemployment
compensation claimants.'.
(b) Regulations- The Secretary of Labor may prescribe any
regulations, operating instructions, or other guidance necessary
to carry out the amendment made by subsection (a).
Subtitle B--Assistance for Vulnerable Individuals
SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.
(a) In General- Section 403 of the Social Security Act (42 U.S.C.
603) is amended by adding at the end the following:
`(c) Emergency Fund-
`(1) ESTABLISHMENT- There is established in the Treasury of
the United States a fund which shall be known as the
`Emergency Contingency Fund for State Temporary Assistance
for Needy Families Programs' (in this subsection referred to
as the `Emergency Fund').
`(2) DEPOSITS INTO FUND- Out of any money in the Treasury of
the United States not otherwise appropriated, there are
appropriated such sums as are necessary for payment to the
Emergency Fund.
`(3) GRANTS-
`(A) GRANT RELATED TO CASELOAD INCREASES-
`(i) IN GENERAL- For each calendar quarter in
fiscal year 2009 or 2010, the Secretary shall
make a grant from the Emergency Fund to each
State that--
`(I) requests a grant under this
subparagraph for the quarter; and
`(II) meets the requirement of clause (ii)
for the quarter.
`(ii) CASELOAD INCREASE REQUIREMENT- A State
meets the requirement of this clause for a
quarter if the average monthly assistance
caseload of the State for the quarter exceeds
the average monthly assistance caseload of the
State for the corresponding quarter in the
emergency fund base year of the State.
`(iii) AMOUNT OF GRANT- Subject to paragraph
(5), the amount of the grant to be made to a
State under this subparagraph for a quarter
shall be 80 percent of the amount (if any) by
which the total expenditures of the State for
basic assistance (as defined by the Secretary)
in the quarter, whether under the State program
funded under this part or as qualified State
expenditures, exceeds the total expenditures of
the State for such assistance for the
corresponding quarter in the emergency fund base
year of the State.
`(B) GRANT RELATED TO INCREASED EXPENDITURES FOR
NON-RECURRENT SHORT TERM BENEFITS-
`(i) IN GENERAL- For each calendar quarter in
fiscal year 2009 or 2010, the Secretary shall
make a grant from the Emergency Fund to each
State that--
`(I) requests a grant under this
subparagraph for the quarter; and
`(II) meets the requirement of clause (ii)
for the quarter.
`(ii) NON-RECURRENT SHORT TERM EXPENDITURE
REQUIREMENT- A State meets the requirement of
this clause for a quarter if the total
expenditures of the State for non-recurrent
short term benefits in the quarter, whether
under the State program funded under this part
or as qualified State expenditures, exceeds the
total such expenditures of the State for
non-recurrent short term benefits in the
corresponding quarter in the emergency fund base
year of the State.
`(iii) AMOUNT OF GRANT- Subject to paragraph
(5), the amount of the grant to be made to a
State under this subparagraph for a quarter
shall be an amount equal to 80 percent of the
excess described in clause (ii).
`(C) GRANT RELATED TO INCREASED EXPENDITURES FOR
SUBSIDIZED EMPLOYMENT-
`(i) IN GENERAL- For each calendar quarter in
fiscal year 2009 or 2010, the Secretary shall
make a grant from the Emergency Fund to each
State that--
`(I) requests a grant under this
subparagraph for the quarter; and
`(II) meets the requirement of clause (ii)
for the quarter.
`(ii) SUBSIDIZED EMPLOYMENT EXPENDITURE
REQUIREMENT- A State meets the requirement of
this clause for a quarter if the total
expenditures of the State for subsidized
employment in the quarter, whether under the
State program funded under this part or as
qualified State expenditures, exceeds the total
of such expenditures of the State in the
corresponding quarter in the emergency fund base
year of the State.
`(iii) AMOUNT OF GRANT- Subject to paragraph
(5), the amount of the grant to be made to a
State under this subparagraph for a quarter
shall be an amount equal to 80 percent of the
excess described in clause (ii).
`(4) AUTHORITY TO MAKE NECESSARY ADJUSTMENTS TO DATA AND
COLLECT NEEDED DATA- In determining the size of the caseload
of a State and the expenditures of a State for basic
assistance, non-recurrent short-term benefits, and
subsidized employment, during any period for which the State
requests funds under this subsection, and during the
emergency fund base year of the State, the Secretary may
make appropriate adjustments to the data to ensure that the
data reflect expenditures under the State program funded
under this part and qualified State expenditures. The
Secretary may develop a mechanism for collecting expenditure
data, including procedures which allow States to make
reasonable estimates, and may set deadlines for making
revisions to the data.
`(5) LIMITATION- The total amount payable to a single State
under subsection (b) and this subsection for a fiscal year
shall not exceed 25 percent of the State family assistance
grant.
`(6) LIMITATIONS ON USE OF FUNDS- A State to which an amount
is paid under this subsection may use the amount only as
authorized by section 404.
`(7) TIMING OF IMPLEMENTATION- The Secretary shall implement
this subsection as quickly as reasonably possible, pursuant
to appropriate guidance to States.
`(8) DEFINITIONS- In this subsection:
`(A) AVERAGE MONTHLY ASSISTANCE CASELOAD- The term
`average monthly assistance caseload' means, with
respect to a State and a quarter, the number of
families receiving assistance during the quarter under
the State program funded under this part or as
qualified State expenditures, subject to adjustment
under paragraph (4).
`(B) EMERGENCY FUND BASE YEAR-
`(i) IN GENERAL- The term `emergency fund base
year' means, with respect to a State and a
category described in clause (ii), whichever of
fiscal year 2007 or 2008 is the fiscal year in
which the amount described by the category with
respect to the State is the lesser.
`(ii) CATEGORIES DESCRIBED- The categories
described in this clause are the following:
`(I) The average monthly assistance
caseload of the State.
`(II) The total expenditures of the State
for non-recurrent short term benefits,
whether under the State program funded
under this part or as qualified State
expenditures.
`(III) The total expenditures of the State
for subsidized employment, whether under
the State program funded under this part
or as qualified State expenditures.
`(C) QUALIFIED STATE EXPENDITURES- The term `qualified
State expenditures' has the meaning given the term in
section 409(a)(7).'.
(b) Temporary Modification of Caseload Reduction Credit- Section
407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended
by inserting `(or if the immediately preceding fiscal year is
fiscal year 2009 or 2010, then, at State option, during the
emergency fund base year of the State with respect to the average
monthly assistance caseload of the State (within the meaning of
section 403(c)(8)(B)))' before `under the State'.
(c) Effective Date- The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 2102. ONE-TIME EMERGENCY PAYMENT TO SSI RECIPIENTS.
(a) Payment Authority-
(1) IN GENERAL- At the earliest practicable date in calendar
year 2009 but not later than 120 days after the date of the
enactment of this section, the Commissioner of Social
Security shall make a one-time payment to each individual
who is determined by the Commissioner in calendar year 2009
to be an individual who--
(A) is entitled to a cash benefit under the
supplemental security income program under title XVI
of the Social Security Act (other than pursuant to
section 1611(e)(1)(B) of such Act) for at least 1 day
in the calendar month in which the first payment under
this section is to be made; or
(B)(i) was entitled to such a cash benefit (other than
pursuant to section 1611(e)(1)(B) of such Act) for at
least 1 day in the 2-month period preceding that
calendar month; and
(ii) whose entitlement to that benefit ceased in that
2-month period solely because the income of the
individual (and the income of the spouse, if any, of
the individual) exceeded the applicable income limit
described in paragraph (1)(A) or (2)(A) of section
1611(a) of such Act.
(2) AMOUNT OF PAYMENT- Subject to subsection (b)(1) of this
section, the amount of the payment shall be--
(A) in the case of an individual eligible for a
payment under this section who does not have a spouse
eligible for such a payment, an amount equal to the
average of the cash benefits payable in the aggregate
under section 1611 or 1619(a) of the Social Security
Act to eligible individuals who do not have an
eligible spouse, for the most recent month for which
data on payment of the benefits are available, as
determined by the Commissioner of Social Security; or
(B) in the case of an individual eligible for a
payment under this section who has a spouse eligible
for such a payment, an amount equal to the average of
the cash benefits payable in the aggregate under
section 1611 or 1619(a) of the Social Security Act to
eligible individuals who have an eligible spouse, for
the most recent month for which data on payment of the
benefits are available, as so determined.
(b) Administrative Provisions-
(1) AUTHORITY TO WITHHOLD PAYMENT TO RECOVER PRIOR
OVERPAYMENT OF SSI BENEFITS- The Commissioner of Social
Security may withhold part or all of a payment otherwise
required to be made under subsection (a) of this section to
an individual, in order to recover a prior overpayment of
benefits to the individual under the supplemental security
income program under title XVI of the Social Security Act,
subject to the limitations of section 1631(b) of such Act.
(2) PAYMENT TO BE DISREGARDED IN DETERMINING UNDERPAYMENTS
UNDER THE SSI PROGRAM- A payment under subsection (a) shall
be disregarded in determining whether there has been an
underpayment of benefits under the supplemental security
income program under title XVI of the Social Security Act.
(3) NONASSIGNMENT- The provisions of section 1631(d) of the
Social Security Act shall apply with respect to payments
under this section to the same extent as they apply in the
case of title XVI of such Act.
(c) Payments To Be Disregarded for Purposes of All Federal and
Federally Assisted Programs- A payment under subsection (a) shall
not be regarded as income to the recipient, and shall not be
regarded as a resource of the recipient for the month of receipt
and the following 6 months, for purposes of determining the
eligibility of any individual for benefits or assistance, or the
amount or extent of benefits or assistance, under any Federal
program or under any State or local program financed in whole or
in part with Federal funds.
(d) Appropriation- Out of any sums in the Treasury of the United
States not otherwise appropriated, there are appropriated such
sums as may be necessary to carry out this section.
SEC. 2103. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW.
During the period that begins with October 1, 2008, and ends with
September 30, 2010, section 455(a)(1) of the Social Security Act
shall be applied and administered as if the phrase `from amounts
paid to the State under section 458 or' did not appear in such
section.
TITLE III--HEALTH INSURANCE ASSISTANCE FOR THE UNEMPLOYED
SEC. 3001. SHORT TITLE AND TABLE OF CONTENTS OF TITLE.
(a) Short Title of Title- This title may be cited as the `Health
Insurance Assistance for the Unemployed Act of 2009'.
(b) Table of Contents of Title- The table of contents of this
title is as follows:
Sec. 3001. Short title and table of contents of title.
Sec. 3002. Premium assistance for COBRA benefits and
extension of COBRA benefits for older or long-term employees.
Sec. 3003. Temporary optional Medicaid coverage for the
unemployed.
SEC. 3002. PREMIUM ASSISTANCE FOR COBRA BENEFITS AND EXTENSION OF
COBRA BENEFITS FOR OLDER OR LONG-TERM EMPLOYEES.
(a) Premium Assistance for COBRA Continuation Coverage for
Individuals and Their Families-
(1) PROVISION OF PREMIUM ASSISTANCE-
(A) REDUCTION OF PREMIUMS PAYABLE- In the case of any
premium for a period of coverage beginning on or after
the date of the enactment of this Act for COBRA
continuation coverage with respect to any assistance
eligible individual, such individual shall be treated
for purposes of any COBRA continuation provision as
having paid the amount of such premium if such
individual pays 35 percent of the amount of such
premium (as determined without regard to this subsection).
(B) PREMIUM REIMBURSEMENT- For provisions providing
the balance of such premium, see section 6431 of the
Internal Revenue Code of 1986, as added by paragraph (12).
(2) LIMITATION OF PERIOD OF PREMIUM ASSISTANCE-
(A) IN GENERAL- Paragraph (1)(A) shall not apply with
respect to any assistance eligible individual for
months of coverage beginning on or after the earlier of--
(i) the first date that such individual is
eligible for coverage under any other group
health plan (other than coverage consisting of
only dental, vision, counseling, or referral
services (or a combination thereof), coverage
under a health reimbursement arrangement or a
health flexible spending arrangement, or
coverage of treatment that is furnished in an
on-site medical facility maintained by the
employer and that consists primarily of
first-aid services, prevention and wellness
care, or similar care (or a combination
thereof)) or is eligible for benefits under
title XVIII of the Social Security Act, or
(ii) the earliest of--
(I) the date which is 12 months after the
first day of the first month that
paragraph (1)(A) applies with respect to
such individual,
(II) the date following the expiration of
the maximum period of continuation
coverage required under the applicable
COBRA continuation coverage provision, or
(III) the date following the expiration of
the period of continuation coverage
allowed under paragraph (4)(B)(ii).
(B) TIMING OF ELIGIBILITY FOR ADDITIONAL COVERAGE- For
purposes of subparagraph (A)(i), an individual shall
not be treated as eligible for coverage under a group
health plan before the first date on which such
individual could be covered under such plan.
(C) NOTIFICATION REQUIREMENT- An assistance eligible
individual shall notify in writing the group health
plan with respect to which paragraph (1)(A) applies if
such paragraph ceases to apply by reason of
subparagraph (A)(i). Such notice shall be provided to
the group health plan in such time and manner as may
be specified by the Secretary of Labor.
(3) ASSISTANCE ELIGIBLE INDIVIDUAL- For purposes of this
section, the term `assistance eligible individual' means any
qualified beneficiary if--
(A) at any time during the period that begins with
September 1, 2008, and ends with December 31, 2009,
such qualified beneficiary is eligible for COBRA
continuation coverage,
(B) such qualified beneficiary elects such coverage, and
(C) the qualifying event with respect to the COBRA
continuation coverage consists of the involuntary
termination of the covered employee's employment and
occurred during such period.
(4) EXTENSION OF ELECTION PERIOD AND EFFECT ON COVERAGE-
(A) IN GENERAL- Notwithstanding section 605(a) of the
Employee Retirement Income Security Act of 1974,
section 4980B(f)(5)(A) of the Internal Revenue Code of
1986, section 2205(a) of the Public Health Service
Act, and section 8905a(c)(2) of title 5, United States
Code, in the case of an individual who is a qualified
beneficiary described in paragraph (3)(A) as of the
date of the enactment of this Act and has not made the
election referred to in paragraph (3)(B) as of such
date, such individual may elect the COBRA continuation
coverage under the COBRA continuation coverage
provisions containing such sections during the 60-day
period commencing with the date on which the
notification required under paragraph (7)(C) is
provided to such individual.
(B) COMMENCEMENT OF COVERAGE; NO REACH-BACK- Any COBRA
continuation coverage elected by a qualified
beneficiary during an extended election period under
subparagraph (A)--
(i) shall commence on the date of the enactment
of this Act, and
(ii) shall not extend beyond the period of COBRA
continuation coverage that would have been
required under the applicable COBRA continuation
coverage provision if the coverage had been
elected as required under such provision.
(C) PREEXISTING CONDITIONS- With respect to a
qualified beneficiary who elects COBRA continuation
coverage pursuant to subparagraph (A), the period--
(i) beginning on the date of the qualifying
event, and
(ii) ending with the day before the date of the
enactment of this Act,
shall be disregarded for purposes of determining the
63-day periods referred to in section 701)(2) of the
Employee Retirement Income Security Act of 1974,
section 9801(c)(2) of the Internal Revenue Code of
1986, and section 2701(c)(2) of the Public Health
Service Act.
(5) EXPEDITED REVIEW OF DENIALS OF PREMIUM ASSISTANCE- In
any case in which an individual requests treatment as an
assistance eligible individual and is denied such treatment
by the group health plan by reason of such individual's
ineligibility for COBRA continuation coverage, the Secretary
of Labor (or the Secretary of Health and Human services in
connection with COBRA continuation coverage which is
provided other than pursuant to part 6 of subtitle B of
title I of the Employee Retirement Income Security Act of
1974), in consultation with the Secretary of the Treasury,
shall provide for expedited review of such denial. An
individual shall be entitled to such review upon application
to such Secretary in such form and manner as shall be
provided by such Secretary. Such Secretary shall make a
determination regarding such individual's eligibility within
10 business days after receipt of such individual's
application for review under this paragraph.
(6) DISREGARD OF SUBSIDIES FOR PURPOSES OF FEDERAL AND STATE
PROGRAMS- Notwithstanding any other provision of law, any
premium reduction with respect to an assistance eligible
individual under this subsection shall not be considered
income or resources in determining eligibility for, or the
amount of assistance or benefits provided under, any other
public benefit provided under Federal law or the law of any
State or political subdivision thereof.
(7) NOTICES TO INDIVIDUALS-
(A) GENERAL NOTICE-
(i) IN GENERAL- In the case of notices provided
under section 606(4) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1166(4)),
section 4980B(f)(6)(D) of the Internal Revenue
Code of 1986, section 2206(4) of the Public
Health Service Act (42 U.S.C. 300bb-6(4)), or
section 8905a(f)(2)(A) of title 5, United States
Code, with respect to individuals who, during
the period described in paragraph (3)(A), become
entitled to elect COBRA continuation coverage,
such notices shall include an additional
notification to the recipient of the
availability of premium reduction with respect
to such coverage under this subsection.
(ii) ALTERNATIVE NOTICE- In the case of COBRA
continuation coverage to which the notice
provision under such sections does not apply,
the Secretary of Labor, in consultation with the
Secretary of the Treasury and the Secretary of
Health and Human Services, shall, in
coordination with administrators of the group
health plans (or other entities) that provide or
administer the COBRA continuation coverage
involved, provide rules requiring the provision
of such notice.
(iii) FORM- The requirement of the additional
notification under this subparagraph may be met
by amendment of existing notice forms or by
inclusion of a separate document with the notice
otherwise required.
(B) SPECIFIC REQUIREMENTS- Each additional
notification under subparagraph (A) shall include--
(i) the forms necessary for establishing
eligibility for premium reduction under this
subsection,
(ii) the name, address, and telephone number
necessary to contact the plan administrator and
any other person maintaining relevant
information in connection with such premium
reduction,
(iii) a description of the extended election
period provided for in paragraph (4)(A),
(iv) a description of the obligation of the
qualified beneficiary under paragraph (2)(C) to
notify the plan providing continuation coverage
of eligibility for subsequent coverage under
another group health plan or eligibility for
benefits under title XVIII of the Social
Security Act and the penalty provided for
failure to so notify the plan, and
(v) a description, displayed in a prominent
manner, of the qualified beneficiary's right to
a reduced premium and any conditions on
entitlement to the reduced premium.
(C) NOTICE RELATING TO RETROACTIVE COVERAGE- In the
case of an individual described in paragraph (3)(A)
who has elected COBRA continuation coverage as of the
date of enactment of this Act or an individual
described in paragraph (4)(A), the administrator of
the group health plan (or other entity) involved shall
provide (within 60 days after the date of enactment of
this Act) for the additional notification required to
be provided under subparagraph (A).
(D) MODEL NOTICES- Not later than 30 days after the
date of enactment of this Act, the Secretary of the
Labor, in consultation with the Secretary of the
Treasury and the Secretary of Health and Human
Services, shall prescribe models for the additional
notification required under this paragraph.
(8) SAFEGUARDS- The Secretary of the Treasury shall provide
such rules, procedures, regulations, and other guidance as
may be necessary and appropriate to prevent fraud and abuse
under this subsection.
(9) OUTREACH- The Secretary of Labor, in consultation with
the Secretary of the Treasury and the Secretary of Health
and Human Services, shall provide outreach consisting of
public education and enrollment assistance relating to
premium reduction provided under this subsection. Such
outreach shall target employers, group health plan
administrators, public assistance programs, States,
insurers, and other entities as determined appropriate by
such Secretaries. Such outreach shall include an initial
focus on those individuals electing continuation coverage
who are referred to in paragraph (7)(C). Information on such
premium reduction, including enrollment, shall also be made
available on website of the Departments of Labor, Treasury,
and Health and Human Services.
(10) DEFINITIONS- For purposes of this subsection--
(A) ADMINISTRATOR- The term `administrator' has the
meaning given such term in section 3(16) of the
Employee Retirement Income Security Act of 1974.
(B) COBRA CONTINUATION COVERAGE- The term `COBRA
continuation coverage' means continuation coverage
provided pursuant to part 6 of subtitle B of title I
of the Employee Retirement Income Security Act of 1974
(other than under section 609), title XXII of the
Public Health Service Act, section 4980B of the
Internal Revenue Code of 1986 (other than subsection
(f)(1) of such section insofar as it relates to
pediatric vaccines), or section 8905a of title 5,
United States Code, or under a State program that
provides continuation coverage comparable to such
continuation coverage. Such term does not include
coverage under a health flexible spending arrangement.
(C) COBRA CONTINUATION PROVISION- The term `COBRA
continuation provision' means the provisions of law
described in subparagraph (B).
(D) COVERED EMPLOYEE- The term `covered employee' has
the meaning given such term in section 607(2) of the
Employee Retirement Income Security Act of 1974.
(E) QUALIFIED BENEFICIARY- The term `qualified
beneficiary' has the meaning given such term in
section 607(3) of the Employee Retirement Income
Security Act of 1974.
(F) GROUP HEALTH PLAN- The term `group health plan'
has the meaning given such term in section 607(1) of
the Employee Retirement Income Security Act of 1974.
(G) STATE- The term `State' includes the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
(11) REPORTS-
(A) INTERIM REPORT- The Secretary of the Treasury
shall submit an interim report to the Committee on
Education and Labor, the Committee on Ways and Means,
and the Committee on Energy and Commerce of the House
of Representatives and the Committee on Health,
Education, Labor, and Pensions and the Committee on
Finance of the Senate regarding the premium reduction
provided under this subsection that includes--
(i) the number of individuals provided such
assistance as of the date of the report; and
(ii) the total amount of expenditures incurred
(with administrative expenditures noted
separately) in connection with such assistance
as of the date of the report.
(B) FINAL REPORT- As soon as practicable after the
last period of COBRA continuation coverage for which
premium reduction is provided under this section, the
Secretary of the Treasury shall submit a final report
to each Committee referred to in subparagraph (A) that
includes--
(i) the number of individuals provided premium
reduction under this section;
(ii) the average dollar amount (monthly and
annually) of premium reductions provided to such
individuals; and
(iii) the total amount of expenditures incurred
(with administrative expenditures noted
separately) in connection with premium reduction
under this section.
(12) COBRA PREMIUM ASSISTANCE-
(A) IN GENERAL- Subchapter B of chapter 65 of the
Internal Revenue Code of 1986 is amended by adding at
the end the following new section:
`SEC. 6431. COBRA PREMIUM ASSISTANCE.
`(a) In General- The entity to whom premiums are payable under
COBRA continuation coverage shall be reimbursed for the amount of
premiums not paid by plan beneficiaries by reason of section
3002(a) of the Health Insurance Assistance for the Unemployed Act
of 2009. Such amount shall be treated as a credit against the
requirement of such entity to make deposits of payroll taxes and
the liability of such entity for payroll taxes. To the extent that
such amount exceeds the amount of such taxes, the Secretary shall
pay to such entity the amount of such excess. No payment may be
made under this subsection to an entity with respect to any
assistance eligible individual until after such entity has
received the reduced premium from such individual required under
section 3002(a)(1)(A) of such Act.
`(b) Payroll Taxes- For purposes of this section, the term
`payroll taxes' means--
`(1) amounts required to be deducted and withheld for the
payroll period under section 3401 (relating to wage
withholding),
`(2) amounts required to be deducted for the payroll period
under section 3102 (relating to FICA employee taxes), and
`(3) amounts of the taxes imposed for the payroll period
under section 3111 (relating to FICA employer taxes).
`(c) Treatment of Credit- Except as otherwise provided by the
Secretary, the credit described in subsection (a) shall be applied
as though the employer had paid to the Secretary, on the day that
the qualified beneficiary's premium payment is received, an amount
equal to such credit.
`(d) Treatment of Payment- For purposes of section 1324(b)(2) of
title 31, United States Code, any payment under this section shall
be treated in the same manner as a refund of the credit under
section 35.
`(e) Reporting-
`(1) IN GENERAL- Each entity entitled to reimbursement under
subsection (a) for any period shall submit such reports as
the Secretary may require, including--
`(A) an attestation of involuntary termination of
employment for each covered employee on the basis of
whose termination entitlement to reimbursement is
claimed under subsection (a), and
`(B) a report of the amount of payroll taxes offset
under subsection (a) for the reporting period and the
estimated offsets of such taxes for the subsequent
reporting period in connection with reimbursements
under subsection (a).
`(2) TIMING OF REPORTS RELATING TO AMOUNT OF PAYROLL TAXES-
Reports required under paragraph (1)(B) shall be submitted
at the same time as deposits of taxes imposed by chapters
21, 22, and 24 or at such time as is specified by the Secretary.
`(f) Regulations- The Secretary may issue such regulations or
other guidance as may be necessary or appropriate to carry out
this section, including the requirement to report information or
the establishment of other methods for verifying the correct
amounts of payments and credits under this section. The Secretary
shall issue such regulations or guidance with respect to the
application of this section to group health plans that are
multiemployer plans (as defined in section 3(37) of the Employee
Retirement Income Security Act of 1974).'.
(B) SOCIAL SECURITY TRUST FUNDS HELD HARMLESS- In
determining any amount transferred or appropriated to
any fund under the Social Security Act, section 6431
of the Internal Revenue Code of 1986 shall not be
taken into account.
(C) CLERICAL AMENDMENT- The table of sections for
subchapter B of chapter 65 of the Internal Revenue
Code of 1986 is amended by adding at the end the
following new item:
`Sec. 6431. COBRA premium assistance.'.
(D) EFFECTIVE DATE- The amendments made by this
paragraph shall apply to premiums to which subsection
(a)(1)(A) applies.
(13) PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF CESSATION
OF ELIGIBILITY FOR PREMIUM ASSISTANCE-
(A) IN GENERAL- Part I of subchapter B of chapter 68
of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:
`SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF
CESSATION OF ELIGIBILITY FOR COBRA PREMIUM ASSISTANCE.
`(a) In General- Any person required to notify a group health plan
under section 3002(a)(2)(C)) of the Health Insurance Assistance
for the Unemployed Act of 2009 who fails to make such a
notification at such time and in such manner as the Secretary of
Labor may require shall pay a penalty of 110 percent of the
premium reduction provided under such section after termination of
eligibility under such subsection.
`(b) Reasonable Cause Exception- No penalty shall be imposed under
subsection (a) with respect to any failure if it is shown that
such failure is due to reasonable cause and not to willful neglect.'.
(B) CLERICAL AMENDMENT- The table of sections of part
I of subchapter B of chapter 68 of such Code is
amended by adding at the end the following new item:
`Sec. 6720C. Penalty for failure to notify health plan of
cessation of eligibility for COBRA premium assistance.'.
(C) EFFECTIVE DATE- The amendments made by this
paragraph shall apply to failures occurring after the
date of the enactment of this Act.
(14) COORDINATION WITH HCTC-
(A) IN GENERAL- Subsection (g) of section 35 of the
Internal Revenue Code of 1986 is amended by
redesignating paragraph (9) as paragraph (10) and
inserting after paragraph (8) the following new paragraph:
`(9) COBRA PREMIUM ASSISTANCE- In the case of an assistance
eligible individual who receives premium reduction for COBRA
continuation coverage under section 3002(a) of the Health
Insurance Assistance for the Unemployed Act of 2009 for any
month during the taxable year, such individual shall not be
treated as an eligible individual, a certified individual,
or a qualifying family member for purposes of this section
or section 7527 with respect to such month.'.
(B) EFFECTIVE DATE- The amendment made by subparagraph
(A) shall apply to taxable years ending after the date
of the enactment of this Act.
(15) EXCLUSION OF COBRA PREMIUM ASSISTANCE FROM GROSS INCOME-
(A) IN GENERAL- Part III of subchapter B of chapter 1
of the Internal Revenue Code of 1986 is amended by
inserting after section 139B the following new section:
`SEC. 139C. COBRA PREMIUM ASSISTANCE.
`In the case of an assistance eligible individual (as defined in
section 3002 of the Health Insurance Assistance for the Unemployed
Act of 2009), gross income does not include any premium reduction
provided under subsection (a) of such section.'.
(B) CLERICAL AMENDMENT- The table of sections for part
III of subchapter B of chapter 1 of such Code is
amended by inserting after the item relating to
section 139B the following new item:
`Sec. 139C. COBRA premium assistance.'.
(C) EFFECTIVE DATE- The amendments made by this
paragraph shall apply to taxable years ending after
the date of the enactment of this Act.
(b) Extension of COBRA Benefits for Older or Long-Term Employees-
(1) ERISA AMENDMENT- Section 602(2)(A) of the Employee
Retirement Income Security Act of 1974 is amended by adding
at the end the following new clauses:
`(x) SPECIAL RULE FOR OLDER OR LONG-TERM
EMPLOYEES GENERALLY- In the case of a qualifying
event described in section 603(2) with respect
to a covered employee who (as of such qualifying
event) has attained age 55 or has completed 10
or more years of service with the entity that is
the employer at the time of the qualifying
event, clauses (i) and (ii) shall not apply. For
purposes of this clause, in the case of a group
health plan that is a multiemployer plan,
service by the covered employee performed for 2
or more employers during periods for which such
employers contributed to such plan shall be
treated as service performed for the entity
referred to in the preceding sentence.
`(xi) YEAR OF SERVICE- For purposes of this
subparagraph, the term `year of service' shall
have the meaning provided in section 202(a)(3).'.
(2) IRC AMENDMENT- Clause (i) of section 4980B(f)(2)(B) of
the Internal Revenue Code of 1986 is amended by adding at
the end the following new subclauses:
`(X) SPECIAL RULE FOR OLDER OR LONG-TERM
EMPLOYEES GENERALLY- In the case of a
qualifying event described in paragraph
(3)(B) with respect to a covered employee
who (as of such qualifying event) has
attained age 55 or has completed 10 or
more years of service with the entity that
is the employer at the time of the
qualifying event, subclauses (I) and (II)
shall not apply. For purposes of this
subclause, in the case of a group health
plan that is a multiemployer plan (as
defined in section 3(37) of the Employee
Retirement Income Security Act of 1974),
service by the covered employee performed
for 2 or more employers during periods for
which such employers contributed to such
plan shall be treated as service performed
for the entity referred to in the
preceding sentence.
`(XI) YEAR OF SERVICE- For purposes of
this clause, the term `year of service'
shall have the meaning provided in section
202(a)(3) of the Employee Retirement
Income Security Act of 1974.'.
(3) PHSA AMENDMENT- Section 2202(2)(A) of the Public Health
Service Act is amended by adding at the end the following
new clauses:
`(viii) SPECIAL RULE FOR OLDER OR LONG-TERM
EMPLOYEES GENERALLY- In the case of a qualifying
event described in section 2203(2) with respect
to a covered employee who (as of such qualifying
event) has attained age 55 or has completed 10
or more years of service with the entity that is
the employer at the time of the qualifying
event, clauses (i) and (ii) shall not apply. For
purposes of this clause, in the case of a group
health plan that is a multiemployer plan (as
defined in section 3(37) of the Employee
Retirement Income Security Act of 1974), service
by the covered employee performed for 2 or more
employers during periods for which such
employers contributed to such plan shall be
treated as service performed for the entity
referred to in the preceding sentence.
`(ix) YEAR OF SERVICE- For purposes of this
subparagraph, the term `year of service' shall
have the meaning provided in section 202(a)(3)
of the Employee Retirement Income Security Act
of 1974.'.
(4) EFFECTIVE DATE OF AMENDMENTS- The amendments made by
this subsection shall apply to periods of coverage which
would (without regard to the amendments made by this
section) end on or after the date of the enactment of this Act.
SEC. 3003. TEMPORARY OPTIONAL MEDICAID COVERAGE FOR THE UNEMPLOYED.
(a) In General- Section 1902 of the Social Security Act (42 U.S.C.
1396b) is amended--
(1) in subsection (a)(10)(A)(ii)--
(A) by striking `or' at the end of subclause (XVIII);
(B) by adding `or' at the end of subclause (XIX); and
(C) by adding at the end the following new subclause:
`(XX) who are described in subsection
(dd)(1) (relating to certain unemployed
individuals and their families);'; and
(2) by adding at the end the following new subsection:
`(dd)(1) Individuals described in this paragraph are--
`(A) individuals who--
`(i) are within one or more of the categories described in
paragraph (2), as elected under the State plan; and
`(ii) meet the applicable requirements of paragraph (3); and
`(B) individuals who--
`(i) are the spouse, or dependent child under 19 years of
age, of an individual described in subparagraph (A); and
`(ii) meet the requirement of paragraph (3)(B).
`(2) The categories of individuals described in this paragraph are
each of the following:
`(A)(i) Individuals who are receiving unemployment
compensation benefits; and
`(ii) individuals who were receiving, but have exhausted,
unemployment compensation benefits on or after July 1, 2008.
`(B) Individuals who are involuntarily unemployed and were
involuntarily separated from employment on or after
September 1, 2008, and before January 1, 2011, whose family
gross income does not exceed a percentage specified by the
State (not to exceed 200 percent) of the income official
poverty line (as defined by the Office of Management and
Budget, and revised annually in accordance with section
673(2) of the Omnibus Budget Reconciliation Act of 1981)
applicable to a family of the size involved, and who, but
for subsection (a)(10)(A)(ii)(XX), are not eligible for
medical assistance under this title or health assistance
under title XXI.
`(C) Individuals who are involuntarily unemployed and were
involuntarily separated from employment on or after
September 1, 2008, and before January 1, 2011, who are
members of households participating in the supplemental
nutrition assistance program established under the Food and
Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), and who, but
for subsection (a)(10)(A)(ii)(XX), are not eligible for
medical assistance under this title or health assistance
under title XXI.
`(3) The requirements of this paragraph with respect to an
individual are the following:
`(A) In the case of individuals within a category described
in subparagraph (A)(i) of paragraph (2), the individual was
involuntarily separated from employment on or after
September 1, 2008, and before January 1, 2011, or meets such
comparable requirement as the Secretary specifies through
rule, guidance, or otherwise in the case of an individual
who was an independent contractor.
`(B) The individual is not otherwise covered under
creditable coverage, as defined in section 2701(c) of the
Public Health Service Act (42 U.S.C. 300gg(c)), but applied
without regard to paragraph (1)(F) of such section and
without regard to coverage provided by reason of the
application of subsection (a)(10)(A)(ii)(XX).
`(4)(A) No income or resources test shall be applied with respect
to any category of individuals described in subparagraph (A) or
(C) of paragraph (2) who are eligible for medical assistance only
by reason of the application of subsection (a)(10)(A)(ii)(XX).
`(B) Nothing in this subsection shall be construed to prevent a
State from imposing a resource test for the category of
individuals described in paragraph (2)(B)).
`(C) In the case of individuals described in paragraph (2)(A) or
(2)(C), the requirements of subsections (i)(22) and (x) in section
1903 shall not apply.'.
(b) 100 Percent Federal Matching Rate-
(1) FMAP FOR TIME-LIMITED PERIOD- The third sentence of
section 1905(b) of such Act (42 U.S.C. 1396d(b)) is amended
by inserting before the period at the end the following:
`and for items and services furnished on or after the date
of enactment of this Act and before January 1, 2011, to
individuals who are eligible for medical assistance only by
reason of the application of section 1902(a)(10)(A)(ii)(XX)'.
(2) CERTAIN ENROLLMENT-RELATED ADMINISTRATIVE COSTS-
Notwithstanding any other provision of law, for purposes of
applying section 1903(a) of the Social Security Act (42
U.S.C. 1396b(a)), with respect to expenditures incurred on
or after the date of the enactment of this Act and before
January 1, 2011, for costs of administration (including
outreach and the modification and operation of eligibility
information systems) attributable to eligibility
determination and enrollment of individuals who are eligible
for medical assistance only by reason of the application of
section 1902(a)(10)(A)(ii)(XX) of such Act, as added by
subsection (a)(1), the Federal matching percentage shall be
100 percent instead of the matching percentage otherwise
applicable.
(c) Conforming Amendments- (1) Section 1903(f)(4) of such Act (42
U.S.C. 1396c(f)(4)) is amended by inserting
`1902(a)(10)(A)(ii)(XX), or' after `1902(a)(10)(A)(ii)(XIX),'.
(2) Section 1905(a) of such Act (42 U.S.C. 1396d(a)) is amended,
in the matter preceding paragraph (1)--
(A) by striking `or' at the end of clause (xii);
(B) by adding `or' at the end of clause (xiii); and
(C) by inserting after clause (xiii) the following new clause:
`(xiv) individuals described in section
1902(dd)(1),'.
TITLE IV--HEALTH INFORMATION TECHNOLOGY
SEC. 4001. SHORT TITLE; TABLE OF CONTENTS OF TITLE.
(a) Short Title- This title may be cited as the `Health
Information Technology for Economic and Clinical Health Act' or
the `HITECH Act'.
(b) Table of Contents of Title- The table of contents of this
title is as follows:
Sec. 4001. Short title; table of contents of title.
Subtitle A--Promotion of Health Information Technology
Part I--Improving Health Care Quality, Safety, and Efficiency
Sec. 4101. ONCHIT; standards development and adoption.
`TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY
**
*`Sec. 3000. Definitions.*
**
`Subtitle A--Promotion of Health Information Technology
**
*`Sec. 3001. Office of the National Coordinator for Health Information
Technology.*
**
**
*`Sec. 3002. HIT Policy Committee.*
**
**
*`Sec. 3003. HIT Standards Committee.*
**
**
*`Sec. 3004. Process for adoption of endorsed recommendations; adoption
of initial set of standards, implementation specifications, and
certification criteria.*
**
**
*`Sec. 3005. Application and use of adopted standards and implementation
specifications by Federal agencies.*
**
**
*`Sec. 3006. Voluntary application and use of adopted standards and
implementation specifications by private entities.*
**
**
*`Sec. 3007. Federal health information technology.*
**
**
*`Sec. 3008. Transitions.*
**
**
*`Sec. 3009. Relation to HIPAA privacy and security law.*
**
**
*`Sec. 3010. Authorization for appropriations.*
**
Sec. 4102. Technical amendment.
Part II--Application and Use of Adopted Health Information
Technology Standards; Reports
Sec. 4111. Coordination of Federal activities with adopted
standards and implementation specifications.
Sec. 4112. Application to private entities.
Sec. 4113. Study and reports.
Subtitle B--Testing of Health Information Technology
Sec. 4201. National Institute for Standards and Technology
testing.
Sec. 4202. Research and development programs.
Subtitle C--Incentives for the Use of Health Information Technology
Part I--Grants and Loans Funding
Sec. 4301. Grant, loan, and demonstration programs.
`Subtitle B--Incentives for the Use of Health Information Technology
**
*`Sec. 3011. Immediate funding to strengthen the health information
technology infrastructure.*
**
**
*`Sec. 3012. Health information technology implementation assistance.*
**
**
*`Sec. 3013. State grants to promote health information technology.*
**
**
*`Sec. 3014. Competitive grants to States and Indian tribes for the
development of loan programs to facilitate the widespread adoption of
certified EHR technology.*
**
**
*`Sec. 3015. Demonstration program to integrate information technology
into clinical education.*
**
**
*`Sec. 3016. Information technology professionals on health care.*
**
**
*`Sec. 3017. General grant and loan provisions.*
**
**
*`Sec. 3018. Authorization for appropriations.*
**
Part II--Medicare Program
Sec. 4311. Incentives for eligible professionals.
Sec. 4312. Incentives for hospitals.
Sec. 4313. Treatment of payments and savings; implementation
funding.
Sec. 4314. Study on application of EHR payment incentives
for providers not receiving other incentive payments.
Part III--Medicaid Funding
Sec. 4321. Medicaid provider HIT adoption and operation
payments; implementation funding.
Sec. 4322. Medicaid nursing home grant program.
Subtitle D--Privacy
Sec. 4400. Definitions.
Part I--Improved Privacy Provisions and Security Provisions
Sec. 4401. Application of security provisions and penalties
to business associates of covered entities; annual guidance
on security provisions.
Sec. 4402. Notification in the case of breach.
Sec. 4403. Education on Health Information Privacy.
Sec. 4404. Application of privacy provisions and penalties
to business associates of covered entities.
Sec. 4405. Restrictions on certain disclosures and sales of
health information; accounting of certain protected health
information disclosures; access to certain information in
electronic format.
Sec. 4406. Conditions on certain contacts as part of health
care operations.
Sec. 4407. Temporary breach notification requirement for
vendors of personal health records and other non-HIPAA
covered entities.
Sec. 4408. Business associate contracts required for certain
entities.
Sec. 4409. Clarification of application of wrongful
disclosures criminal penalties.
Sec. 4410. Improved enforcement.
Sec. 4411. Audits.
Sec. 4412. Special rule for information to reduce medication
errors and improve patient safety.
Part II--Relationship to Other Laws; Regulatory References;
Effective Date; Reports
Sec. 4421. Relationship to other laws.
Sec. 4422. Regulatory references.
Sec. 4423. Effective date.
Sec. 4424. Studies, reports, guidance.
Subtitle E--Miscellaneous Medicare Provisions
Sec. 4501. Moratoria on certain Medicare regulations.
Sec. 4502. Long-term care hospital technical corrections.
Subtitle A--Promotion of Health Information Technology
/PART I--IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY/
SEC. 4101. ONCHIT; STANDARDS DEVELOPMENT AND ADOPTION.
The Public Health Service Act (42 U.S.C. 201 et seq.) is amended
by adding at the end the following:
`TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY
`SEC. 3000. DEFINITIONS.
`In this title:
`(1) CERTIFIED EHR TECHNOLOGY- The term `certified EHR
technology' means a qualified electronic health record that
is certified pursuant to section 3001(c)(5) as meeting
standards adopted under section 3004 that are applicable to
the type of record involved (as determined by the Secretary,
such as an ambulatory electronic health record for
office-based physicians or an inpatient hospital electronic
health record for hospitals).
`(2) ENTERPRISE INTEGRATION- The term `enterprise
integration' means the electronic linkage of health care
providers, health plans, the government, and other
interested parties, to enable the electronic exchange and
use of health information among all the components in the
health care infrastructure in accordance with applicable
law, and such term includes related application protocols
and other related standards.
`(3) HEALTH CARE PROVIDER- The term `health care provider'
means a hospital, skilled nursing facility, nursing
facility, home health entity or other long term care
facility, health care clinic, Federally qualified health
center, group practice (as defined in section 1877(h)(4) of
the Social Security Act), a pharmacist, a pharmacy, a
laboratory, a physician (as defined in section 1861(r) of
the Social Security Act), a practitioner (as described in
section 1842(b)(18)(C) of the Social Security Act), a
provider operated by, or under contract with, the Indian
Health Service or by an Indian tribe (as defined in the
Indian Self-Determination and Education Assistance Act),
tribal organization, or urban Indian organization (as
defined in section 4 of the Indian Health Care Improvement
Act), a rural health clinic, a covered entity under section
340B, an ambulatory surgical center described in section
1833(i) of the Social Security Act, and any other category
of facility or clinician determined appropriate by the
Secretary.
`(4) HEALTH INFORMATION- The term `health information' has
the meaning given such term in section 1171(4) of the Social
Security Act.
`(5) HEALTH INFORMATION TECHNOLOGY- The term `health
information technology' means hardware, software, integrated
technologies and related licenses, intellectual property,
upgrades, and packaged solutions sold as services that are
specifically designed for use by health care entities for
the electronic creation, maintenance, or exchange of health
information.
`(6) HEALTH PLAN- The term `health plan' has the meaning
given such term in section 1171(5) of the Social Security Act.
`(7) HIT POLICY COMMITTEE- The term `HIT Policy Committee'
means such Committee established under section 3002(a).
`(8) HIT STANDARDS COMMITTEE- The term `HIT Standards
Committee' means such Committee established under section
3003(a).
`(9) INDIVIDUALLY IDENTIFIABLE HEALTH INFORMATION- The term
`individually identifiable health information' has the
meaning given such term in section 1171(6) of the Social
Security Act.
`(10) LABORATORY- The term `laboratory' has the meaning
given such term in section 353(a).
`(11) NATIONAL COORDINATOR- The term `National Coordinator'
means the head of the Office of the National Coordinator for
Health Information Technology established under section 3001(a).
`(12) PHARMACIST- The term `pharmacist' has the meaning
given such term in section 804(2) of the Federal Food, Drug,
and Cosmetic Act.
`(13) QUALIFIED ELECTRONIC HEALTH RECORD- The term
`qualified electronic health record' means an electronic
record of health-related information on an individual that--
`(A) includes patient demographic and clinical health
information, such as medical history and problem
lists; and
`(B) has the capacity--
`(i) to provide clinical decision support;
`(ii) to support physician order entry;
`(iii) to capture and query information relevant
to health care quality; and
`(iv) to exchange electronic health information
with, and integrate such information from other
sources.
`(14) STATE- The term `State' means each of the several
States, the District of Columbia, Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Northern Mariana Islands.
`Subtitle A--Promotion of Health Information Technology
`SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH
INFORMATION TECHNOLOGY.
`(a) Establishment- There is established within the Department of
Health and Human Services an Office of the National Coordinator
for Health Information Technology (referred to in this section as
the `Office'). The Office shall be headed by a National
Coordinator who shall be appointed by the Secretary and shall
report directly to the Secretary.
`(b) Purpose- The National Coordinator shall perform the duties
under subsection (c) in a manner consistent with the development
of a nationwide health information technology infrastructure that
allows for the electronic use and exchange of information and that--
`(1) ensures that each patient's health information is
secure and protected, in accordance with applicable law;
`(2) improves health care quality, reduces medical errors,
reduces health disparities, and advances the delivery of
patient-centered medical care;
`(3) reduces health care costs resulting from inefficiency,
medical errors, inappropriate care, duplicative care, and
incomplete information;
`(4) provides appropriate information to help guide medical
decisions at the time and place of care;
`(5) ensures the inclusion of meaningful public input in
such development of such infrastructure;
`(6) improves the coordination of care and information among
hospitals, laboratories, physician offices, and other
entities through an effective infrastructure for the secure
and authorized exchange of health care information;
`(7) improves public health activities and facilitates the
early identification and rapid response to public health
threats and emergencies, including bioterror events and
infectious disease outbreaks;
`(8) facilitates health and clinical research and health
care quality;
`(9) promotes prevention of chronic diseases;
`(10) promotes a more effective marketplace, greater
competition, greater systems analysis, increased consumer
choice, and improved outcomes in health care services; and
`(11) improves efforts to reduce health disparities.
`(c) Duties of the National Coordinator-
`(1) STANDARDS- The National Coordinator shall review and
determine whether to endorse each standard, implementation
specification, and certification criterion for the
electronic exchange and use of health information that is
recommended by the HIT Standards Committee under section
3003 for purposes of adoption under section 3004. The
Coordinator shall make such determination, and report to the
Secretary such determination, not later than 45 days after
the date the recommendation is received by the Coordinator.
`(2) HIT POLICY COORDINATION-
`(A) IN GENERAL- The National Coordinator shall
coordinate health information technology policy and
programs of the Department with those of other
relevant executive branch agencies with a goal of
avoiding duplication of efforts and of helping to
ensure that each agency undertakes health information
technology activities primarily within the areas of
its greatest expertise and technical capability and in
a manner towards a coordinated national goal.
`(B) HIT POLICY AND STANDARDS COMMITTEES- The National
Coordinator shall be a leading member in the
establishment and operations of the HIT Policy
Committee and the HIT Standards Committee and shall
serve as a liaison among those two Committees and the
Federal Government.
`(3) STRATEGIC PLAN-
`(A) IN GENERAL- The National Coordinator shall, in
consultation with other appropriate Federal agencies
(including the National Institute of Standards and
Technology), update the Federal Health IT Strategic
Plan (developed as of June 3, 2008) to include
specific objectives, milestones, and metrics with
respect to the following:
`(i) The electronic exchange and use of health
information and the enterprise integration of
such information.
`(ii) The utilization of an electronic health
record for each person in the United States by 2014.
`(iii) The incorporation of privacy and security
protections for the electronic exchange of an
individual's individually identifiable health
information.
`(iv) Ensuring security methods to ensure
appropriate authorization and electronic
authentication of health information and
specifying technologies or methodologies for
rendering health information unusable,
unreadable, or indecipherable.
`(v) Specifying a framework for coordination and
flow of recommendations and policies under this
subtitle among the Secretary, the National
Coordinator, the HIT Policy Committee, the HIT
Standards Committee, and other health
information exchanges and other relevant entities.
`(vi) Methods to foster the public understanding
of health information technology.
`(vii) Strategies to enhance the use of health
information technology in improving the quality
of health care, reducing medical errors,
reducing health disparities, improving public
health, and improving the continuity of care
among health care settings.
`(B) COLLABORATION- The strategic plan shall be
updated through collaboration of public and private
entities.
`(C) MEASURABLE OUTCOME GOALS- The strategic plan
update shall include measurable outcome goals.
`(D) PUBLICATION- The National Coordinator shall
republish the strategic plan, including all updates.
`(4) WEBSITE- The National Coordinator shall maintain and
frequently update an Internet website on which there is
posted information on the work, schedules, reports,
recommendations, and other information to ensure
transparency in promotion of a nationwide health information
technology infrastructure.
`(5) CERTIFICATION-
`(A) IN GENERAL- The National Coordinator, in
consultation with the Director of the National
Institute of Standards and Technology, shall develop a
program (either directly or by contract) for the
voluntary certification of health information
technology as being in compliance with applicable
certification criteria adopted under this subtitle.
Such program shall include testing of the technology
in accordance with section 4201(b) of the HITECH Act.
`(B) CERTIFICATION CRITERIA DESCRIBED- In this title,
the term `certification criteria' means, with respect
to standards and implementation specifications for
health information technology, criteria to establish
that the technology meets such standards and
implementation specifications.
`(6) REPORTS AND PUBLICATIONS-
`(A) REPORT ON ADDITIONAL FUNDING OR AUTHORITY NEEDED-
Not later than 12 months after the date of the
enactment of this title, the National Coordinator
shall submit to the appropriate committees of
jurisdiction of the House of Representatives and the
Senate a report on any additional funding or authority
the Coordinator or the HIT Policy Committee or HIT
Standards Committee requires to evaluate and develop
standards, implementation specifications, and
certification criteria, or to achieve full
participation of stakeholders in the adoption of a
nationwide health information technology
infrastructure that allows for the electronic use and
exchange of health information.
`(B) IMPLEMENTATION REPORT- The National Coordinator
shall prepare a report that identifies lessons learned
from major public and private health care systems in
their implementation of health information technology,
including information on whether the technologies and
practices developed by such systems may be applicable
to and usable in whole or in part by other health care
providers.
`(C) ASSESSMENT OF IMPACT OF HIT ON COMMUNITIES WITH
HEALTH DISPARITIES AND UNINSURED, UNDERINSURED, AND
MEDICALLY UNDERSERVED AREAS- The National Coordinator
shall assess and publish the impact of health
information technology in communities with health
disparities and in areas with a high proportion of
individuals who are uninsured, underinsured, and
medically underserved individuals (including urban and
rural areas) and identify practices to increase the
adoption of such technology by health care providers
in such communities.
`(D) EVALUATION OF BENEFITS AND COSTS OF THE
ELECTRONIC USE AND EXCHANGE OF HEALTH INFORMATION- The
National Coordinator shall evaluate and publish
evidence on the benefits and costs of the electronic
use and exchange of health information and assess to
whom these benefits and costs accrue.
`(E) RESOURCE REQUIREMENTS- The National Coordinator
shall estimate and publish resources required annually
to reach the goal of utilization of an electronic
health record for each person in the United States by
2014, including the required level of Federal funding,
expectations for regional, State, and private
investment, and the expected contributions by
volunteers to activities for the utilization of such
records.
`(7) ASSISTANCE- The National Coordinator may provide
financial assistance to consumer advocacy groups and
not-for-profit entities that work in the public interest for
purposes of defraying the cost to such groups and entities
to participate under, whether in whole or in part, the
National Technology Transfer Act of 1995 (15 U.S.C. 272 note).
`(8) GOVERNANCE FOR NATIONWIDE HEALTH INFORMATION NETWORK-
The National Coordinator shall establish a governance
mechanism for the nationwide health information network.
`(d) Detail of Federal Employees-
`(1) IN GENERAL- Upon the request of the National
Coordinator, the head of any Federal agency is authorized to
detail, with or without reimbursement from the Office, any
of the personnel of such agency to the Office to assist it
in carrying out its duties under this section.
`(2) EFFECT OF DETAIL- Any detail of personnel under
paragraph (1) shall--
`(A) not interrupt or otherwise affect the civil
service status or privileges of the Federal employee; and
`(B) be in addition to any other staff of the
Department employed by the National Coordinator.
`(3) ACCEPTANCE OF DETAILEES- Notwithstanding any other
provision of law, the Office may accept detailed personnel
from other Federal agencies without regard to whether the
agency described under paragraph (1) is reimbursed.
`(e) Chief Privacy Officer of the Office of the National
Coordinator- Not later than 12 months after the date of the
enactment of this title, the Secretary shall appoint a Chief
Privacy Officer of the Office of the National Coordinator, whose
duty it shall be to advise the National Coordinator on privacy,
security, and data stewardship of electronic health information
and to coordinate with other Federal agencies (and similar privacy
officers in such agencies), with State and regional efforts, and
with foreign countries with regard to the privacy, security, and
data stewardship of electronic individually identifiable health
information.
`SEC. 3002. HIT POLICY COMMITTEE.
`(a) Establishment- There is established a HIT Policy Committee to
make policy recommendations to the National Coordinator relating
to the implementation of a nationwide health information
technology infrastructure, including implementation of the
strategic plan described in section 3001(c)(3).
`(b) Duties-
`(1) RECOMMENDATIONS ON HEALTH INFORMATION TECHNOLOGY
INFRASTRUCTURE- The HIT Policy Committee shall recommend a
policy framework for the development and adoption of a
nationwide health information technology infrastructure that
permits the electronic exchange and use of health
information as is consistent with the strategic plan under
section 3001(c)(3) and that includes the recommendations
under paragraph (2). The Committee shall update such
recommendations and make new recommendations as appropriate.
`(2) SPECIFIC AREAS OF STANDARD DEVELOPMENT-
`(A) IN GENERAL- The HIT Policy Committee shall
recommend the areas in which standards, implementation
specifications, and certification criteria are needed
for the electronic exchange and use of health
information for purposes of adoption under section
3004 and shall recommend an order of priority for the
development, harmonization, and recognition of such
standards, specifications, and certification criteria
among the areas so recommended. Such standards and
implementation specifications shall include named
standards, architectures, and software schemes for the
authentication and security of individually
identifiable health information and other information
as needed to ensure the reproducible development of
common solutions across disparate entities.
`(B) AREAS REQUIRED FOR CONSIDERATION- For purposes of
subparagraph (A), the HIT Policy Committee shall make
recommendations for at least the following areas:
`(i) Technologies that protect the privacy of
health information and promote security in a
qualified electronic health record, including
for the segmentation and protection from
disclosure of specific and sensitive
individually identifiable health information
with the goal of minimizing the reluctance of
patients to seek care (or disclose information
about a condition) because of privacy concerns,
in accordance with applicable law, and for the
use and disclosure of limited data sets of such
information.
`(ii) A nationwide health information technology
infrastructure that allows for the electronic
use and accurate exchange of health information.
`(iii) The utilization of a certified electronic
health record for each person in the United
States by 2014.
`(iv) Technologies that as a part of a qualified
electronic health record allow for an accounting
of disclosures made by a covered entity (as
defined for purposes of regulations promulgated
under section 264(c) of the Health Insurance
Portability and Accountability Act of 1996) for
purposes of treatment, payment, and health care
operations (as such terms are defined for
purposes of such regulations).
`(v) The use of certified electronic health
records to improve the quality of health care,
such as by promoting the coordination of health
care and improving continuity of health care
among health care providers, by reducing medical
errors, by improving population health, by
reducing health disparities, and by advancing
research and education.
`(vi) Technologies that allow individually
identifiable health information to be rendered
unusable, unreadable, or indecipherable to
unauthorized individuals when such information
is transmitted in the nationwide health
information network or physically transported
outside of the secured, physical perimeter of a
health care provider, health plan, or health
care clearinghouse.
`(C) OTHER AREAS FOR CONSIDERATION- In making
recommendations under subparagraph (A), the HIT Policy
Committee may consider the following additional areas:
`(i) The appropriate uses of a nationwide health
information infrastructure, including for
purposes of--
`(I) the collection of quality data and
public reporting;
`(II) biosurveillance and public health;
`(III) medical and clinical research; and
`(IV) drug safety.
`(ii) Self-service technologies that facilitate
the use and exchange of patient information and
reduce wait times.
`(iii) Telemedicine technologies, in order to
reduce travel requirements for patients in
remote areas.
`(iv) Technologies that facilitate home health
care and the monitoring of patients recuperating
at home.
`(v) Technologies that help reduce medical errors.
`(vi) Technologies that facilitate the
continuity of care among health settings.
`(vii) Technologies that meet the needs of
diverse populations.
`(viii) Any other technology that the HIT Policy
Committee finds to be among the technologies
with the greatest potential to improve the
quality and efficiency of health care.
`(3) FORUM- The HIT Policy Committee shall serve as a forum
for broad stakeholder input with specific expertise in
policies relating to the matters described in paragraphs (1)
and (2).
`(c) Membership and Operations-
`(1) IN GENERAL- The National Coordinator shall provide
leadership in the establishment and operations of the HIT
Policy Committee.
`(2) MEMBERSHIP- The membership of the HIT Policy Committee
shall at least reflect providers, ancillary healthcare
workers, consumers, purchasers, health plans, technology
vendors, researchers, relevant Federal agencies, and
individuals with technical expertise on health care quality,
privacy and security, and on the electronic exchange and use
of health information.
`(3) CONSIDERATION- The National Coordinator shall ensure
that the relevant recommendations and comments from the
National Committee on Vital and Health Statistics are
considered in the development of policies.
`(d) Application of FACA- The Federal Advisory Committee Act (5
U.S.C. App.), other than section 14 of such Act, shall apply to
the HIT Policy Committee.
`(e) Publication- The Secretary shall provide for publication in
the Federal Register and the posting on the Internet website of
the Office of the National Coordinator for Health Information
Technology of all policy recommendations made by the HIT Policy
Committee under this section.
`SEC. 3003. HIT STANDARDS COMMITTEE.
`(a) Establishment- There is established a committee to be known
as the HIT Standards Committee to recommend to the National
Coordinator standards, implementation specifications, and
certification criteria for the electronic exchange and use of
health information for purposes of adoption under section 3004,
consistent with the implementation of the strategic plan described
in section 3001(c)(3) and beginning with the areas listed in
section 3002(b)(2)(B) in accordance with policies developed by the
HIT Policy Committee.
`(b) Duties-
`(1) STANDARDS DEVELOPMENT-
`(A) IN GENERAL- The HIT Standards Committee shall
recommend to the National Coordinator standards,
implementation specifications, and certification
criteria described in subsection (a) that have been
developed, harmonized, or recognized by the HIT
Standards Committee. The HIT Standards Committee shall
update such recommendations and make new
recommendations as appropriate, including in response
to a notification sent under section 3004(a)(2)(B).
Such recommendations shall be consistent with the
latest recommendations made by the HIT Policy Committee.
`(B) PILOT TESTING OF STANDARDS AND IMPLEMENTATION
SPECIFICATIONS- In the development, harmonization, or
recognition of standards and implementation
specifications, the HIT Standards Committee shall, as
appropriate, provide for the testing of such standards
and specifications by the National Institute for
Standards and Technology under section 4201(a) of the
HITECH Act.
`(C) CONSISTENCY- The standards, implementation
specifications, and certification criteria recommended
under this subsection shall be consistent with the
standards for information transactions and data
elements adopted pursuant to section 1173 of the
Social Security Act.
`(2) FORUM- The HIT Standards Committee shall serve as a
forum for the participation of a broad range of stakeholders
to provide input on the development, harmonization, and
recognition of standards, implementation specifications, and
certification criteria necessary for the development and
adoption of a nationwide health information technology
infrastructure that allows for the electronic use and
exchange of health information.
`(3) SCHEDULE- Not later than 90 days after the date of the
enactment of this title, the HIT Standards Committee shall
develop a schedule for the assessment of policy
recommendations developed by the HIT Policy Committee under
section 3002. The HIT Standards Committee shall update such
schedule annually. The Secretary shall publish such schedule
in the Federal Register.
`(4) PUBLIC INPUT- The HIT Standards Committee shall conduct
open public meetings and develop a process to allow for
public comment on the schedule described in paragraph (3)
and recommendations described in this subsection. Under such
process comments shall be submitted in a timely manner after
the date of publication of a recommendation under this
subsection.
`(c) Membership and Operations-
`(1) IN GENERAL- The National Coordinator shall provide
leadership in the establishment and operations of the HIT
Standards Committee.
`(2) MEMBERSHIP- The membership of the HIT Standards
Committee shall at least reflect providers, ancillary
healthcare workers, consumers, purchasers, health plans,
technology vendors, researchers, relevant Federal agencies,
and individuals with technical expertise on health care
quality, privacy and security, and on the electronic
exchange and use of health information.
`(3) CONSIDERATION- The National Coordinator shall ensure
that the relevant recommendations and comments from the
National Committee on Vital and Health Statistics are
considered in the development of standards.
`(4) ASSISTANCE- For the purposes of carrying out this
section, the Secretary may provide or ensure that financial
assistance is provided by the HIT Standards Committee to
defray in whole or in part any membership fees or dues
charged by such Committee to those consumer advocacy groups
and not for profit entities that work in the public interest
as a part of their mission.
`(d) Application of FACA- The Federal Advisory Committee Act (5
U.S.C. App.), other than section 14, shall apply to the HIT
Standards Committee.
`(e) Publication- The Secretary shall provide for publication in
the Federal Register and the posting on the Internet website of
the Office of the National Coordinator for Health Information
Technology of all recommendations made by the HIT Standards
Committee under this section.
`SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED RECOMMENDATIONS;
ADOPTION OF INITIAL SET OF STANDARDS, IMPLEMENTATION
SPECIFICATIONS, AND CERTIFICATION CRITERIA.
`(a) Process for Adoption of Endorsed Recommendations-
`(1) REVIEW OF ENDORSED STANDARDS, IMPLEMENTATION
SPECIFICATIONS, AND CERTIFICATION CRITERIA- Not later than
90 days after the date of receipt of standards,
implementation specifications, or certification criteria
endorsed under section 3001(c), the Secretary, in
consultation with representatives of other relevant Federal
agencies, shall jointly review such standards,
implementation specifications, or certification criteria and
shall determine whether or not to propose adoption of such
standards, implementation specifications, or certification
criteria.
`(2) DETERMINATION TO ADOPT STANDARDS, IMPLEMENTATION
SPECIFICATIONS, AND CERTIFICATION CRITERIA- If the Secretary
determines--
`(A) to propose adoption of any grouping of such
standards, implementation specifications, or
certification criteria, the Secretary shall, by
regulation, determine whether or not to adopt such
grouping of standards, implementation specifications,
or certification criteria; or
`(B) not to propose adoption of any grouping of
standards, implementation specifications, or
certification criteria, the Secretary shall notify the
National Coordinator and the HIT Standards Committee
in writing of such determination and the reasons for
not proposing the adoption of such recommendation.
`(3) PUBLICATION- The Secretary shall provide for
publication in the Federal Register of all determinations
made by the Secretary under paragraph (1).
`(b) Adoption of Initial Set of Standards, Implementation
Specifications, and Certification Criteria-
`(1) IN GENERAL- Not later than December 31, 2009, the
Secretary shall, through the rulemaking process described in
section 3004(a), adopt an initial set of standards,
implementation specifications, and certification criteria
for the areas required for consideration under section
3002(b)(2)(B).
`(2) APPLICATION OF CURRENT STANDARDS, IMPLEMENTATION
SPECIFICATIONS, AND CERTIFICATION CRITERIA- The standards,
implementation specifications, and certification criteria
adopted before the date of the enactment of this title
through the process existing through the Office of the
National Coordinator for Health Information Technology may
be applied towards meeting the requirement of paragraph (1).
`SEC. 3005. APPLICATION AND USE OF ADOPTED STANDARDS AND
IMPLEMENTATION SPECIFICATIONS BY FEDERAL AGENCIES.
`For requirements relating to the application and use by Federal
agencies of the standards and implementation specifications
adopted under section 3004, see section 4111 of the HITECH Act.
`SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPTED STANDARDS AND
IMPLEMENTATION SPECIFICATIONS BY PRIVATE ENTITIES.
`(a) In General- Except as provided under section 4112 of the
HITECH Act, any standard or implementation specification adopted
under section 3004 shall be voluntary with respect to private
entities.
`(b) Rule of Construction- Nothing in this subtitle shall be
construed to require that a private entity that enters into a
contract with the Federal Government apply or use the standards
and implementation specifications adopted under section 3004 with
respect to activities not related to the contract.
`SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY.
`(a) In General- The National Coordinator shall support the
development, routine updating, and provision of qualified EHR
technology (as defined in section 3000) consistent with
subsections (b) and (c) unless the Secretary determines that the
needs and demands of providers are being substantially and
adequately met through the marketplace.
`(b) Certification- In making such EHR technology publicly
available, the National Coordinator shall ensure that the
qualified EHR technology described in subsection (a) is certified
under the program developed under section 3001(c)(3) to be in
compliance with applicable standards adopted under section 3003(a).
`(c) Authorization To Charge a Nominal Fee- The National
Coordinator may impose a nominal fee for the adoption by a health
care provider of the health information technology system
developed or approved under subsection (a) and (b). Such fee shall
take into account the financial circumstances of smaller
providers, low income providers, and providers located in rural or
other medically underserved areas.
`(d) Rule of Construction- Nothing in this section shall be
construed to require that a private or government entity adopt or
use the technology provided under this section.
`SEC. 3008. TRANSITIONS.
`(a) ONCHIT- To the extent consistent with section 3001, all
functions, personnel, assets, liabilities, and administrative
actions applicable to the National Coordinator for Health
Information Technology appointed under Executive Order No. 13335
or the Office of such National Coordinator on the date before the
date of the enactment of this title shall be transferred to the
National Coordinator appointed under section 3001(a) and the
Office of such National Coordinator as of the date of the
enactment of this title.
`(b) AHIC-
`(1) To the extent consistent with sections 3002 and 3003,
all functions, personnel, assets, and liabilities applicable
to the AHIC Successor, Inc. doing business as the National
eHealth Collaborative as of the day before the date of the
enactment of this title shall be transferred to the HIT
Policy Committee or the HIT Standards Committee, established
under section 3002(a) or 3003(a), as appropriate, as of the
date of the enactment of this title.
`(2) In carrying out section 3003(b)(1)(A), until
recommendations are made by the HIT Policy Committee,
recommendations of the HIT Standards Committee shall be
consistent with the most recent recommendations made by such
AHIC Successor, Inc.
`(c) Rules of Construction-
`(1) ONCHIT- Nothing in section 3001 or subsection (a) shall
be construed as requiring the creation of a new entity to
the extent that the Office of the National Coordinator for
Health Information Technology established pursuant to
Executive Order No. 13335 is consistent with the provisions
of section 3001.
`(2) AHIC- Nothing in sections 3002 or 3003 or subsection
(b) shall be construed as prohibiting the AHIC Successor,
Inc. doing business as the National eHealth Collaborative
from modifying its charter, duties, membership, and any
other structure or function required to be consistent with
section 3002 and 3003 in a manner that would permit the
Secretary to choose to recognize such AHIC Successor, Inc.
as the HIT Policy Committee or the HIT Standards Committee.
`SEC. 3009. RELATION TO HIPAA PRIVACY AND SECURITY LAW.
`(a) In General- With respect to the relation of this title to
HIPAA privacy and security law:
`(1) This title may not be construed as having any effect on
the authorities of the Secretary under HIPAA privacy and
security law.
`(2) The purposes of this title include ensuring that the
health information technology standards and implementation
specifications adopted under section 3004 take into account
the requirements of HIPAA privacy and security law.
`(b) Definition- For purposes of this section, the term `HIPAA
privacy and security law' means--
`(1) the provisions of part C of title XI of the Social
Security Act, section 264 of the Health Insurance
Portability and Accountability Act of 1996, and subtitle D
of title IV of the HITECH Act; and
`(2) regulations under such provisions.
`SEC. 3010. AUTHORIZATION FOR APPROPRIATIONS.
`There is authorized to be appropriated to the Office of the
National Coordinator for Health Information Technology to carry
out this subtitle $250,000,000 for fiscal year 2009.'.
SEC. 4102. TECHNICAL AMENDMENT.
Section 1171(5) of the Social Security Act (42 U.S.C. 1320d) is
amended by striking `or C' and inserting `C, or D'.
/PART II--APPLICATION AND USE OF ADOPTED HEALTH INFORMATION
TECHNOLOGY STANDARDS; REPORTS/
SEC. 4111. COORDINATION OF FEDERAL ACTIVITIES WITH ADOPTED
STANDARDS AND IMPLEMENTATION SPECIFICATIONS.
(a) Spending on Health Information Technology Systems- As each
agency (as defined in the Executive order issued on August 22,
2006, relating to promoting quality and efficient health care in
Federal government administered or sponsored health care programs)
implements, acquires, or upgrades health information technology
systems used for the direct exchange of individually identifiable
health information between agencies and with non-Federal entities,
it shall utilize, where available, health information technology
systems and products that meet standards and implementation
specifications adopted under section 3004 of the Public Health
Service Act, as added by section 4101.
(b) Federal Information Collection Activities- With respect to a
standard or implementation specification adopted under section
3004 of the Public Health Service Act, as added by section 4101,
the President shall take measures to ensure that Federal
activities involving the broad collection and submission of health
information are consistent with such standard or implementation
specification, respectively, within three years after the date of
such adoption.
(c) Application of Definitions- The definitions contained in
section 3000 of the Public Health Service Act, as added by section
4101, shall apply for purposes of this part.
SEC. 4112. APPLICATION TO PRIVATE ENTITIES.
Each agency (as defined in such Executive Order issued on August
22, 2006, relating to promoting quality and efficient health care
in Federal government administered or sponsored health care
programs) shall require in contracts or agreements with health
care providers, health plans, or health insurance issuers that as
each provider, plan, or issuer implements, acquires, or upgrades
health information technology systems, it shall utilize, where
available, health information technology systems and products that
meet standards and implementation specifications adopted under
section 3004 of the Public Health Service Act, as added by section
4101.
SEC. 4113. STUDY AND REPORTS.
(a) Report on Adoption of Nationwide System- Not later than 2
years after the date of the enactment of this Act and annually
thereafter, the Secretary of Health and Human Services shall
submit to the appropriate committees of jurisdiction of the House
of Representatives and the Senate a report that--
(1) describes the specific actions that have been taken by
the Federal Government and private entities to facilitate
the adoption of a nationwide system for the electronic use
and exchange of health information;
(2) describes barriers to the adoption of such a nationwide
system; and
(3) contains recommendations to achieve full implementation
of such a nationwide system.
(b) Reimbursement Incentive Study and Report-
(1) STUDY- The Secretary of Health and Human Services shall
carry out, or contract with a private entity to carry out, a
study that examines methods to create efficient
reimbursement incentives for improving health care quality
in Federally qualified health centers, rural health clinics,
and free clinics.
(2) REPORT- Not later than 2 years after the date of the
enactment of this Act, the Secretary of Health and Human
Services shall submit to the appropriate committees of
jurisdiction of the House of Representatives and the Senate
a report on the study carried out under paragraph (1).
(c) Aging Services Technology Study and Report-
(1) IN GENERAL- The Secretary of Health and Human Services
shall carry out, or contract with a private entity to carry
out, a study of matters relating to the potential use of new
aging services technology to assist seniors, individuals
with disabilities, and their caregivers throughout the aging
process.
(2) MATTERS TO BE STUDIED- The study under paragraph (1)
shall include--
(A) an evaluation of--
(i) methods for identifying current, emerging,
and future health technology that can be used to
meet the needs of seniors and individuals with
disabilities and their caregivers across all
aging services settings, as specified by the
Secretary;
(ii) methods for fostering scientific innovation
with respect to aging services technology within
the business and academic communities; and
(iii) developments in aging services technology
in other countries that may be applied in the
United States; and
(B) identification of--
(i) barriers to innovation in aging services
technology and devising strategies for removing
such barriers; and
(ii) barriers to the adoption of aging services
technology by health care providers and
consumers and devising strategies to removing
such barriers.
(3) REPORT- Not later than 24 months after the date of the
enactment of this Act, the Secretary shall submit to the
appropriate committees of jurisdiction of the House of
Representatives and of the Senate a report on the study
carried out under paragraph (1).
(4) DEFINITIONS- For purposes of this subsection:
(A) AGING SERVICES TECHNOLOGY- The term `aging
services technology' means health technology that
meets the health care needs of seniors, individuals
with disabilities, and the caregivers of such seniors
and individuals.
(B) SENIOR- The term `senior' has such meaning as
specified by the Secretary.
Subtitle B--Testing of Health Information Technology
SEC. 4201. NATIONAL INSTITUTE FOR STANDARDS AND TECHNOLOGY TESTING.
(a) Pilot Testing of Standards and Implementation Specifications-
In coordination with the HIT Standards Committee established under
section 3003 of the Public Health Service Act, as added by section
4101, with respect to the development of standards and
implementation specifications under such section, the Director of
the National Institute for Standards and Technology shall test
such standards and implementation specifications, as appropriate,
in order to assure the efficient implementation and use of such
standards and implementation specifications.
(b) Voluntary Testing Program- In coordination with the HIT
Standards Committee established under section 3003 of the Public
Health Service Act, as added by section 4101, with respect to the
development of standards and implementation specifications under
such section, the Director of the National Institute of Standards
and Technology shall support the establishment of a conformance
testing infrastructure, including the development of technical
test beds. The development of this conformance testing
infrastructure may include a program to accredit independent,
non-Federal laboratories to perform testing.
SEC. 4202. RESEARCH AND DEVELOPMENT PROGRAMS.
(a) Health Care Information Enterprise Integration Research Centers-
(1) IN GENERAL- The Director of the National Institute of
Standards and Technology, in consultation with the Director
of the National Science Foundation and other appropriate
Federal agencies, shall establish a program of assistance to
institutions of higher education (or consortia thereof which
may include nonprofit entities and Federal Government
laboratories) to establish multidisciplinary Centers for
Health Care Information Enterprise Integration.
(2) REVIEW; COMPETITION- Grants shall be awarded under this
subsection on a merit-reviewed, competitive basis.
(3) PURPOSE- The purposes of the Centers described in
paragraph (1) shall be--
(A) to generate innovative approaches to health care
information enterprise integration by conducting
cutting-edge, multidisciplinary research on the
systems challenges to health care delivery; and
(B) the development and use of health information
technologies and other complementary fields.
(4) RESEARCH AREAS- Research areas may include--
(A) interfaces between human information and
communications technology systems;
(B) voice-recognition systems;
(C) software that improves interoperability and
connectivity among health information systems;
(D) software dependability in systems critical to
health care delivery;
(E) measurement of the impact of information
technologies on the quality and productivity of health
care;
(F) health information enterprise management;
(G) health information technology security and
integrity; and
(H) relevant health information technology to reduce
medical errors.
(5) APPLICATIONS- An institution of higher education (or a
consortium thereof) seeking funding under this subsection
shall submit an application to the Director of the National
Institute of Standards and Technology at such time, in such
manner, and containing such information as the Director may
require. The application shall include, at a minimum, a
description of--
(A) the research projects that will be undertaken by
the Center established pursuant to assistance under
paragraph (1) and the respective contributions of the
participating entities;
(B) how the Center will promote active collaboration
among scientists and engineers from different
disciplines, such as information technology, biologic
sciences, management, social sciences, and other
appropriate disciplines;
(C) technology transfer activities to demonstrate and
diffuse the research results, technologies, and
knowledge; and
(D) how the Center will contribute to the education
and training of researchers and other professionals in
fields relevant to health information enterprise
integration.
(b) National Information Technology Research and Development
Program- The National High-Performance Computing Program
established by section 101 of the High-Performance Computing Act
of 1991 (15 U.S.C. 5511) shall coordinate Federal research and
development programs related to the development and deployment of
health information technology, including activities related to--
(1) computer infrastructure;
(2) data security;
(3) development of large-scale, distributed, reliable
computing systems;
(4) wired, wireless, and hybrid high-speed networking;
(5) development of software and software-intensive systems;
(6) human-computer interaction and information management
technologies; and
(7) the social and economic implications of information
technology.
Subtitle C--Incentives for the Use of Health Information Technology
/PART I--GRANTS AND LOANS FUNDING/
SEC. 4301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS.
Title XXX of the Public Health Service Act, as added by section
4101, is amended by adding at the end the following new subtitle:
`Subtitle B--Incentives for the Use of Health Information Technology
`SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE HEALTH INFORMATION
TECHNOLOGY INFRASTRUCTURE.
`(a) In General- The Secretary shall, using amounts appropriated
under section 3018, invest in the infrastructure necessary to
allow for and promote the electronic exchange and use of health
information for each individual in the United States consistent
with the goals outlined in the strategic plan developed by the
National Coordinator (and as available) under section 3001. To the
greatest extent practicable, the Secretary shall ensure that any
funds so appropriated shall be used for the acquisition of health
information technology that meets standards and certification
criteria adopted before the date of the enactment of this title
until such date as the standards are adopted under section 3004.
The Secretary shall invest funds through the different agencies
with expertise in such goals, such as the Office of the National
Coordinator for Health Information Technology, the Health
Resources and Services Administration, the Agency for Healthcare
Research and Quality, the Centers of Medicare & Medicaid Services,
the Centers for Disease Control and Prevention, and the Indian
Health Service to support the following:
`(1) Health information technology architecture that will
support the nationwide electronic exchange and use of health
information in a secure, private, and accurate manner,
including connecting health information exchanges, and which
may include updating and implementing the infrastructure
necessary within different agencies of the Department of
Health and Human Services to support the electronic use and
exchange of health information.
`(2) Development and adoption of appropriate certified
electronic health records for categories of providers, as
defined in section 3000, not eligible for support under
title XVIII or XIX of the Social Security Act for the
adoption of such records.
`(3) Training on and dissemination of information on best
practices to integrate health information technology,
including electronic health records, into a provider's
delivery of care, consistent with best practices learned
from the Health Information Technology Research Center
developed under section 3012(b), including community health
centers receiving assistance under section 330, covered
entities under section 340B, and providers participating in
one or more of the programs under titles XVIII, XIX, and XXI
of the Social Security Act (relating to Medicare, Medicaid,
and the State Children's Health Insurance Program).
`(4) Infrastructure and tools for the promotion of
telemedicine, including coordination among Federal agencies
in the promotion of telemedicine.
`(5) Promotion of the interoperability of clinical data
repositories or registries.
`(6) Promotion of technologies and best practices that
enhance the protection of health information by all holders
of individually identifiable health information.
`(7) Improvement and expansion of the use of health
information technology by public health departments.
`(8) Provision of $300 million to support regional or
sub-national efforts towards health information exchange.
`(b) Coordination- The Secretary shall ensure funds under this
section are used in a coordinated manner with other health
information promotion activities.
`(c) Additional Use of Funds- In addition to using funds as
provided in subsection (a), the Secretary may use amounts
appropriated under section 3018 to carry out health information
technology activities that are provided for under laws in effect
on the date of the enactment of this title.
`SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLEMENTATION ASSISTANCE.
`(a) Health Information Technology Extension Program- To assist
health care providers to adopt, implement, and effectively use
certified EHR technology that allows for the electronic exchange
and use of health information, the Secretary, acting through the
Office of the National Coordinator, shall establish a health
information technology extension program to provide health
information technology assistance services to be carried out
through the Department of Health and Human Services. The National
Coordinator shall consult with other Federal agencies with
demonstrated experience and expertise in information technology
services, such as the National Institute of Standards and
Technology, in developing and implementing this program.
`(b) Health Information Technology Research Center-
`(1) IN GENERAL- The Secretary shall create a Health
Information Technology Research Center (in this section
referred to as the `Center') to provide technical assistance
and develop or recognize best practices to support and
accelerate efforts to adopt, implement, and effectively
utilize health information technology that allows for the
electronic exchange and use of information in compliance
with standards, implementation specifications, and
certification criteria adopted under section 3004.
`(2) INPUT- The Center shall incorporate input from--
`(A) other Federal agencies with demonstrated
experience and expertise in information technology
services such as the National Institute of Standards
and Technology;
`(B) users of health information technology, such as
providers and their support and clerical staff and
others involved in the care and care coordination of
patients, from the health care and health information
technology industry; and
`(C) others as appropriate.
`(3) PURPOSES- The purposes of the Center are to--
`(A) provide a forum for the exchange of knowledge and
experience;
`(B) accelerate the transfer of lessons learned from
existing public and private sector initiatives,
including those currently receiving Federal financial
support;
`(C) assemble, analyze, and widely disseminate
evidence and experience related to the adoption,
implementation, and effective use of health
information technology that allows for the electronic
exchange and use of information including through the
regional centers described in subsection (c);
`(D) provide technical assistance for the
establishment and evaluation of regional and local
health information networks to facilitate the
electronic exchange of information across health care
settings and improve the quality of health care;
`(E) provide technical assistance for the development
and dissemination of solutions to barriers to the
exchange of electronic health information; and
`(F) learn about effective strategies to adopt and
utilize health information technology in medically
underserved communities.
`(c) Health Information Technology Regional Extension Centers-
`(1) IN GENERAL- The Secretary shall provide assistance for
the creation and support of regional centers (in this
subsection referred to as `regional centers') to provide
technical assistance and disseminate best practices and
other information learned from the Center to support and
accelerate efforts to adopt, implement, and effectively
utilize health information technology that allows for the
electronic exchange and use of information in compliance
with standards, implementation specifications, and
certification criteria adopted under section 3004.
Activities conducted under this subsection shall be
consistent with the strategic plan developed by the National
Coordinator, (and, as available) under section 3001.
`(2) AFFILIATION- Regional centers shall be affiliated with
any United States-based nonprofit institution or
organization, or group thereof, that applies and is awarded
financial assistance under this section. Individual awards
shall be decided on the basis of merit.
`(3) OBJECTIVE- The objective of the regional centers is to
enhance and promote the adoption of health information
technology through--
`(A) assistance with the implementation, effective
use, upgrading, and ongoing maintenance of health
information technology, including electronic health
records, to healthcare providers nationwide;
`(B) broad participation of individuals from industry,
universities, and State governments;
`(C) active dissemination of best practices and
research on the implementation, effective use,
upgrading, and ongoing maintenance of health
information technology, including electronic health
records, to health care providers in order to improve
the quality of healthcare and protect the privacy and
security of health information;
`(D) participation, to the extent practicable, in
health information exchanges;
`(E) utilization, when appropriate, of the expertise
and capability that exists in Federal agencies other
than the Department; and
`(F) integration of health information technology,
including electronic health records, into the initial
and ongoing training of health professionals and
others in the healthcare industry that would be
instrumental to improving the quality of healthcare
through the smooth and accurate electronic use and
exchange of health information.
`(4) REGIONAL ASSISTANCE- Each regional center shall aim to
provide assistance and education to all providers in a
region, but shall prioritize any direct assistance first to
the following:
`(A) Public or not-for-profit hospitals or critical
access hospitals.
`(B) Federally qualified health centers (as defined in
section 1861(aa)(4) of the Social Security Act).
`(C) Entities that are located in rural and other
areas that serve uninsured, underinsured, and
medically underserved individuals (regardless of
whether such area is urban or rural).
`(D) Individual or small group practices (or a
consortium thereof) that are primarily focused on
primary care.
`(5) FINANCIAL SUPPORT- The Secretary may provide financial
support to any regional center created under this subsection
for a period not to exceed four years. The Secretary may not
provide more than 50 percent of the capital and annual
operating and maintenance funds required to create and
maintain such a center, except in an instance of national
economic conditions which would render this cost-share
requirement detrimental to the program and upon notification
to Congress as to the justification to waive the cost-share
requirement.
`(6) NOTICE OF PROGRAM DESCRIPTION AND AVAILABILITY OF
FUNDS- The Secretary shall publish in the Federal Register,
not later than 90 days after the date of the enactment of
this title, a draft description of the program for
establishing regional centers under this subsection. Such
description shall include the following:
`(A) A detailed explanation of the program and the
programs goals.
`(B) Procedures to be followed by the applicants.
`(C) Criteria for determining qualified applicants.
`(D) Maximum support levels expected to be available
to centers under the program.
`(7) APPLICATION REVIEW- The Secretary shall subject each
application under this subsection to merit review. In making
a decision whether to approve such application and provide
financial support, the Secretary shall consider at a minimum
the merits of the application, including those portions of
the application regarding--
`(A) the ability of the applicant to provide
assistance under this subsection and utilization of
health information technology appropriate to the needs
of particular categories of health care providers;
`(B) the types of service to be provided to health
care providers;
`(C) geographical diversity and extent of service
area; and
`(D) the percentage of funding and amount of in-kind
commitment from other sources.
`(8) BIENNIAL EVALUATION- Each regional center which
receives financial assistance under this subsection shall be
evaluated biennially by an evaluation panel appointed by the
Secretary. Each evaluation panel shall be composed of
private experts, none of whom shall be connected with the
center involved, and of Federal officials. Each evaluation
panel shall measure the involved center's performance
against the objective specified in paragraph (3). The
Secretary shall not continue to provide funding to a
regional center unless its evaluation is overall positive.
`(9) CONTINUING SUPPORT- After the second year of assistance
under this subsection, a regional center may receive
additional support under this subsection if it has received
positive evaluations and a finding by the Secretary that
continuation of Federal funding to the center was in the
best interest of provision of health information technology
extension services.
`SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFORMATION TECHNOLOGY.
`(a) In General- The Secretary, acting through the National
Coordinator, shall establish a program in accordance with this
section to facilitate and expand the electronic movement and use
of health information among organizations according to nationally
recognized standards.
`(b) Planning Grants- The Secretary may award a grant to a State
or qualified State-designated entity (as described in subsection
(f)) that submits an application to the Secretary at such time, in
such manner, and containing such information as the Secretary may
specify, for the purpose of planning activities described in
subsection (d).
`(c) Implementation Grants- The Secretary may award a grant to a
State or qualified State designated entity that--
`(1) has submitted, and the Secretary has approved, a plan
described in subsection (e) (regardless of whether such plan
was prepared using amounts awarded under subsection (b); and
`(2) submits an application at such time, in such manner,
and containing such information as the Secretary may specify.
`(d) Use of Funds- Amounts received under a grant under subsection
(c) shall be used to conduct activities to facilitate and expand
the electronic movement and use of health information among
organizations according to nationally recognized standards through
activities that include--
`(1) enhancing broad and varied participation in the
authorized and secure nationwide electronic use and exchange
of health information;
`(2) identifying State or local resources available towards
a nationwide effort to promote health information technology;
`(3) complementing other Federal grants, programs, and
efforts towards the promotion of health information technology;
`(4) providing technical assistance for the development and
dissemination of solutions to barriers to the exchange of
electronic health information;
`(5) promoting effective strategies to adopt and utilize
health information technology in medically underserved
communities;
`(6) assisting patients in utilizing health information
technology;
`(7) encouraging clinicians to work with Health Information
Technology Regional Extension Centers as described in
section 3012, to the extent they are available and valuable;
`(8) supporting public health agencies' authorized use of
and access to electronic health information;
`(9) promoting the use of electronic health records for
quality improvement including through quality measures
reporting; and
`(10) such other activities as the Secretary may specify.
`(e) Plan-
`(1) IN GENERAL- A plan described in this subsection is a
plan that describes the activities to be carried out by a
State or by the qualified State-designated entity within
such State to facilitate and expand the electronic movement
and use of health information among organizations according
to nationally recognized standards and implementation
specifications.
`(2) REQUIRED ELEMENTS- A plan described in paragraph (1)
shall--
`(A) be pursued in the public interest;
`(B) be consistent with the strategic plan developed
by the National Coordinator, (and, as available) under
section 3001;
`(C) include a description of the ways the State or
qualified State-designated entity will carry out the
activities described in subsection (b); and
`(D) contain such elements as the Secretary may require.
`(f) Qualified State-Designated Entity- For purposes of this
section, to be a qualified State-designated entity, with respect
to a State, an entity shall--
`(1) be designated by the State as eligible to receive
awards under this section;
`(2) be a not-for-profit entity with broad stakeholder
representation on its governing board;
`(3) demonstrate that one of its principal goals is to use
information technology to improve health care quality and
efficiency through the authorized and secure electronic
exchange and use of health information;
`(4) adopt nondiscrimination and conflict of interest
policies that demonstrate a commitment to open, fair, and
nondiscriminatory participation by stakeholders; and
`(5) conform to such other requirements as the Secretary may
establish.
`(g) Required Consultation- In carrying out activities described
in subsections (b) and (c), a State or qualified State-designated
entity shall consult with and consider the recommendations of--
`(1) health care providers (including providers that provide
services to low income and underserved populations);
`(2) health plans;
`(3) patient or consumer organizations that represent the
population to be served;
`(4) health information technology vendors;
`(5) health care purchasers and employers;
`(6) public health agencies;
`(7) health professions schools, universities and colleges;
`(8) clinical researchers;
`(9) other users of health information technology such as
the support and clerical staff of providers and others
involved in the care and care coordination of patients; and
`(10) such other entities, as may be determined appropriate
by the Secretary.
`(h) Continuous Improvement- The Secretary shall annually evaluate
the activities conducted under this section and shall, in awarding
grants under this section, implement the lessons learned from such
evaluation in a manner so that awards made subsequent to each such
evaluation are made in a manner that, in the determination of the
Secretary, will lead towards the greatest improvement in quality
of care, decrease in costs, and the most effective authorized and
secure electronic exchange of health information.
`(i) Required Match-
`(1) IN GENERAL- For a fiscal year (beginning with fiscal
year 2011), the Secretary may not make a grant under this
section to a State unless the State agrees to make available
non-Federal contributions (which may include in-kind
contributions) toward the costs of a grant awarded under
subsection (c) in an amount equal to--
`(A) for fiscal year 2011, not less than $1 for each
$10 of Federal funds provided under the grant;
`(B) for fiscal year 2012, not less than $1 for each
$7 of Federal funds provided under the grant; and
`(C) for fiscal year 2013 and each subsequent fiscal
year, not less than $1 for each $3 of Federal funds
provided under the grant.
`(2) AUTHORITY TO REQUIRE STATE MATCH FOR FISCAL YEARS
BEFORE FISCAL YEAR 2011- For any fiscal year during the
grant program under this section before fiscal year 2011,
the Secretary may determine the extent to which there shall
be required a non-Federal contribution from a State
receiving a grant under this section.
`SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN TRIBES FOR THE
DEVELOPMENT OF LOAN PROGRAMS TO FACILITATE THE WIDESPREAD ADOPTION
OF CERTIFIED EHR TECHNOLOGY.
`(a) In General- The National Coordinator may award competitive
grants to eligible entities for the establishment of programs for
loans to health care providers to conduct the activities described
in subsection (e).
`(b) Eligible Entity Defined- For purposes of this subsection, the
term `eligible entity' means a State or Indian tribe (as defined
in the Indian Self-Determination and Education Assistance Act) that--
`(1) submits to the National Coordinator an application at
such time, in such manner, and containing such information
as the National Coordinator may require;
`(2) submits to the National Coordinator a strategic plan in
accordance with subsection (d) and provides to the National
Coordinator assurances that the entity will update such plan
annually in accordance with such subsection;
`(3) provides assurances to the National Coordinator that
the entity will establish a Loan Fund in accordance with
subsection (c);
`(4) provides assurances to the National Coordinator that
the entity will not provide a loan from the Loan Fund to a
health care provider unless the provider agrees to--
`(A) submit reports on quality measures adopted by the
Federal Government (by not later than 90 days after
the date on which such measures are adopted), to--
`(i) the Administrator of the Centers for
Medicare & Medicaid Services (or his or her
designee), in the case of an entity
participating in the Medicare program under
title XVIII of the Social Security Act or the
Medicaid program under title XIX of such Act; or
`(ii) the Secretary in the case of other entities;
`(B) demonstrate to the satisfaction of the Secretary
(through criteria established by the Secretary) that
any certified EHR technology purchased, improved, or
otherwise financially supported under a loan under
this section is used to exchange health information in
a manner that, in accordance with law and standards
(as adopted under section 3004) applicable to the
exchange of information, improves the quality of
health care, such as promoting care coordination; and
`(C) comply with such other requirements as the entity
or the Secretary may require;
`(D) include a plan on how health care providers
involved intend to maintain and support the certified
EHR technology over time;
`(E) include a plan on how the health care providers
involved intend to maintain and support the certified
EHR technology that would be purchased with such loan,
including the type of resources expected to be
involved and any such other information as the State
or Indian Tribe, respectively, may require; and
`(5) agrees to provide matching funds in accordance with
subsection (h).
`(c) Establishment of Fund- For purposes of subsection (b)(3), an
eligible entity shall establish a certified EHR technology loan
fund (referred to in this subsection as a `Loan Fund') and comply
with the other requirements contained in this section. A grant to
an eligible entity under this section shall be deposited in the
Loan Fund established by the eligible entity. No funds authorized
by other provisions of this title to be used for other purposes
specified in this title shall be deposited in any Loan Fund.
`(d) Strategic Plan-
`(1) IN GENERAL- For purposes of subsection (b)(2), a
strategic plan of an eligible entity under this subsection
shall identify the intended uses of amounts available to the
Loan Fund of such entity.
`(2) CONTENTS- A strategic plan under paragraph (1), with
respect to a Loan Fund of an eligible entity, shall include
for a year the following:
`(A) A list of the projects to be assisted through the
Loan Fund during such year.
`(B) A description of the criteria and methods
established for the distribution of funds from the
Loan Fund during the year.
`(C) A description of the financial status of the Loan
Fund as of the date of submission of the plan.
`(D) The short-term and long-term goals of the Loan Fund.
`(e) Use of Funds- Amounts deposited in a Loan Fund, including
loan repayments and interest earned on such amounts, shall be used
only for awarding loans or loan guarantees, making reimbursements
described in subsection (g)(4)(A), or as a source of reserve and
security for leveraged loans, the proceeds of which are deposited
in the Loan Fund established under subsection (c). Loans under
this section may be used by a health care provider to--
`(1) facilitate the purchase of certified EHR technology;
`(2) enhance the utilization of certified EHR technology;
`(3) train personnel in the use of such technology; or
`(4) improve the secure electronic exchange of health
information.
`(f) Types of Assistance- Except as otherwise limited by
applicable State law, amounts deposited into a Loan Fund under
this section may only be used for the following:
`(1) To award loans that comply with the following:
`(A) The interest rate for each loan shall not exceed
the market interest rate.
`(B) The principal and interest payments on each loan
shall commence not later than 1 year after the date
the loan was awarded, and each loan shall be fully
amortized not later than 10 years after the date of
the loan.
`(C) The Loan Fund shall be credited with all payments
of principal and interest on each loan awarded from
the Loan Fund.
`(2) To guarantee, or purchase insurance for, a local
obligation (all of the proceeds of which finance a project
eligible for assistance under this subsection) if the
guarantee or purchase would improve credit market access or
reduce the interest rate applicable to the obligation involved.
`(3) As a source of revenue or security for the payment of
principal and interest on revenue or general obligation
bonds issued by the eligible entity if the proceeds of the
sale of the bonds will be deposited into the Loan Fund.
`(4) To earn interest on the amounts deposited into the Loan
Fund.
`(5) To make reimbursements described in subsection (g)(4)(A).
`(g) Administration of Loan Funds-
`(1) COMBINED FINANCIAL ADMINISTRATION- An eligible entity
may (as a convenience and to avoid unnecessary
administrative costs) combine, in accordance with applicable
State law, the financial administration of a Loan Fund
established under this subsection with the financial
administration of any other revolving fund established by
the entity if otherwise not prohibited by the law under
which the Loan Fund was established.
`(2) COST OF ADMINISTERING FUND- Each eligible entity may
annually use not to exceed 4 percent of the funds provided
to the entity under a grant under this section to pay the
reasonable costs of the administration of the programs under
this section, including the recovery of reasonable costs
expended to establish a Loan Fund which are incurred after
the date of the enactment of this title.
`(3) GUIDANCE AND REGULATIONS- The National Coordinator
shall publish guidance and promulgate regulations as may be
necessary to carry out the provisions of this section,
including--
`(A) provisions to ensure that each eligible entity
commits and expends funds allotted to the entity under
this section as efficiently as possible in accordance
with this title and applicable State laws; and
`(B) guidance to prevent waste, fraud, and abuse.
`(4) PRIVATE SECTOR CONTRIBUTIONS-
`(A) IN GENERAL- A Loan Fund established under this
section may accept contributions from private sector
entities, except that such entities may not specify
the recipient or recipients of any loan issued under
this subsection. An eligible entity may agree to
reimburse a private sector entity for any contribution
made under this subparagraph, except that the amount
of such reimbursement may not be greater than the
principal amount of the contribution made.
`(B) AVAILABILITY OF INFORMATION- An eligible entity
shall make publicly available the identity of, and
amount contributed by, any private sector entity under
subparagraph (A) and may issue letters of commendation
or make other awards (that have no financial value) to
any such entity.
`(h) Matching Requirements-
`(1) IN GENERAL- The National Coordinator may not make a
grant under subsection (a) to an eligible entity unless the
entity agrees to make available (directly or through
donations from public or private entities) non-Federal
contributions in cash to the costs of carrying out the
activities for which the grant is awarded in an amount equal
to not less than $1 for each $5 of Federal funds provided
under the grant.
`(2) DETERMINATION OF AMOUNT OF NON-FEDERAL CONTRIBUTION- In
determining the amount of non-Federal contributions that an
eligible entity has provided pursuant to subparagraph (A),
the National Coordinator may not include any amounts
provided to the entity by the Federal Government.
`(i) Effective Date- The Secretary may not make an award under
this section prior to January 1, 2010.
`SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE INFORMATION
TECHNOLOGY INTO CLINICAL EDUCATION.
`(a) In General- The Secretary may award grants under this section
to carry out demonstration projects to develop academic curricula
integrating certified EHR technology in the clinical education of
health professionals. Such awards shall be made on a competitive
basis and pursuant to peer review.
`(b) Eligibility- To be eligible to receive a grant under
subsection (a), an entity shall--
`(1) submit to the Secretary an application at such time, in
such manner, and containing such information as the
Secretary may require;
`(2) submit to the Secretary a strategic plan for
integrating certified EHR technology in the clinical
education of health professionals to reduce medical errors
and enhance health care quality;
`(3) be--
`(A) a school of medicine, osteopathic medicine,
dentistry, or pharmacy, a graduate program in
behavioral or mental health, or any other graduate
health professions school;
`(B) a graduate school of nursing or physician
assistant studies;
`(C) a consortium of two or more schools described in
subparagraph (A) or (B); or
`(D) an institution with a graduate medical education
program in medicine, osteopathic medicine, dentistry,
pharmacy, nursing, or physician assistance studies;
`(4) provide for the collection of data regarding the
effectiveness of the demonstration project to be funded
under the grant in improving the safety of patients, the
efficiency of health care delivery, and in increasing the
likelihood that graduates of the grantee will adopt and
incorporate certified EHR technology, in the delivery of
health care services; and
`(5) provide matching funds in accordance with subsection (d).
`(c) Use of Funds-
`(1) IN GENERAL- With respect to a grant under subsection
(a), an eligible entity shall--
`(A) use grant funds in collaboration with 2 or more
disciplines; and
`(B) use grant funds to integrate certified EHR
technology into community-based clinical education.
`(2) LIMITATION- An eligible entity shall not use amounts
received under a grant under subsection (a) to purchase
hardware, software, or services.
`(d) Financial Support- The Secretary may not provide more than 50
percent of the costs of any activity for which assistance is
provided under subsection (a), except in an instance of national
economic conditions which would render the cost-share requirement
under this subsection detrimental to the program and upon
notification to Congress as to the justification to waive the
cost-share requirement.
`(e) Evaluation- The Secretary shall take such action as may be
necessary to evaluate the projects funded under this section and
publish, make available, and disseminate the results of such
evaluations on as wide a basis as is practicable.
`(f) Reports- Not later than 1 year after the date of enactment of
this title, and annually thereafter, the Secretary shall submit to
the Committee on Health, Education, Labor, and Pensions and the
Committee on Finance of the Senate, and the Committee on Energy
and Commerce of the House of Representatives a report that--
`(1) describes the specific projects established under this
section; and
`(2) contains recommendations for Congress based on the
evaluation conducted under subsection (e).
`SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS ON HEALTH CARE.
`(a) In General- The Secretary, in consultation with the Director
of the National Science Foundation, shall provide assistance to
institutions of higher education (or consortia thereof) to
establish or expand medical health informatics education programs,
including certification, undergraduate, and masters degree
programs, for both health care and information technology students
to ensure the rapid and effective utilization and development of
health information technologies (in the United States health care
infrastructure).
`(b) Activities- Activities for which assistance may be provided
under subsection (a) may include the following:
`(1) Developing and revising curricula in medical health
informatics and related disciplines.
`(2) Recruiting and retaining students to the program involved.
`(3) Acquiring equipment necessary for student instruction
in these programs, including the installation of testbed
networks for student use.
`(4) Establishing or enhancing bridge programs in the health
informatics fields between community colleges and universities.
`(c) Priority- In providing assistance under subsection (a), the
Secretary shall give preference to the following:
`(1) Existing education and training programs.
`(2) Programs designed to be completed in less than six months.
`(d) Financial Support- The Secretary may not provide more than 50
percent of the costs of any activity for which assistance is
provided under subsection (a), except in an instance of national
economic conditions which would render the cost-share requirement
under this subsection detrimental to the program and upon
notification to Congress as to the justification to waive the
cost-share requirement.
`SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS.
`(a) Reports- The Secretary may require that an entity receiving
assistance under this subtitle shall submit to the Secretary, not
later than the date that is 1 year after the date of receipt of
such assistance, a report that includes--
`(1) an analysis of the effectiveness of the activities for
which the entity receives such assistance, as compared to
the goals for such activities; and
`(2) an analysis of the impact of the project on health care
quality and safety.
`(b) Requirement to Improve Quality of Care and Decrease in Costs-
The National Coordinator shall annually evaluate the activities
conducted under this subtitle and shall, in awarding grants,
implement the lessons learned from such evaluation in a manner so
that awards made subsequent to each such evaluation are made in a
manner that, in the determination of the National Coordinator,
will result in the greatest improvement in the quality and
efficiency of health care.
`SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS.
`For the purposes of carrying out this subtitle, there is
authorized to be appropriated such sums as may be necessary for
each of the fiscal years 2009 through 2013. Amounts so
appropriated shall remain available until expended.'.
/PART II--MEDICARE PROGRAM/
SEC. 4311. 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 Certified EHR
Technology-
`(1) INCENTIVE PAYMENTS-
`(A) IN GENERAL- Subject to the succeeding
subparagraphs of this paragraph, with respect to
covered professional services furnished by an eligible
professional during a payment year (as defined in
subparagraph (E)), if the eligible professional is a
meaningful EHR user (as determined under paragraph
(2)) for the 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 established under section 1841 an amount equal to
75 percent of the Secretary's estimate (based on
claims submitted 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.
`(B) LIMITATIONS ON AMOUNTS OF INCENTIVE PAYMENTS-
`(i) IN GENERAL- In no case shall the amount of
the incentive payment provided under this
paragraph 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 clause (iii), the
applicable amount specified in this subparagraph
for an eligible professional is as follows:
`(I) For the first payment year for such
professional, $15,000.
`(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
professional, $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 payment 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. If the first payment year for an
eligible professional is after 2015 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.
`(ii) HOSPITAL-BASED ELIGIBLE PROFESSIONAL- For
purposes of clause (i), the term `hospital-based
eligible professional' means, with respect to
covered professional services furnished by an
eligible professional during the reporting
period for a payment year, an eligible
professional, such as a pathologist,
anesthesiologist, or emergency physician, who
furnishes substantially all of such services in
a hospital setting (whether inpatient or
outpatient) and through the use of the
facilities and equipment, including computer
equipment, of the hospital.
`(D) PAYMENT-
`(i) FORM OF PAYMENT- The payment under this
paragraph may be in the form of a single
consolidated payment or in the form of such
periodic installments as the Secretary may specify.
`(ii) COORDINATION OF APPLICATION OF LIMITATION
FOR PROFESSIONALS IN DIFFERENT PRACTICES- In the
case of an eligible professional furnishing
covered professional services in more than one
practice (as specified by the Secretary), the
Secretary shall establish rules to coordinate
the incentive payments, including the
application of the limitation on amounts of such
incentive payments under this paragraph, among
such practices.
`(iii) COORDINATION WITH MEDICAID- The Secretary
shall seek, to the maximum extent practicable,
to avoid duplicative requirements from Federal
and State Governments to demonstrate meaningful
use of certified EHR technology under this title
and title XIX. The Secretary may also adjust the
reporting periods under such title and such
subsections in order to carry out this clause.
`(E) PAYMENT YEAR DEFINED-
`(i) IN GENERAL- For purposes of this
subsection, the term `payment year' means a year
beginning with 2011.
`(ii) FIRST, SECOND, ETC. PAYMENT YEAR- The term
`first payment year' means, with respect to
covered professional services furnished by an
eligible professional, the first year for which
an incentive payment is made for such services
under this subsection. The terms `second payment
year', `third payment year', `fourth payment
year', and `fifth payment year' mean, with
respect to covered professional services
furnished by such eligible professional, each
successive year immediately following the first
payment year for such professional.
`(2) MEANINGFUL EHR USER-
`(A) IN GENERAL- For purposes of paragraph (1), an
eligible professional shall be treated as a meaningful
EHR user for a reporting period for a payment year
(or, for purposes of subsection (a)(7), for a
reporting period under such subsection for a year) if
each of the following requirements is met:
`(i) MEANINGFUL USE OF CERTIFIED EHR TECHNOLOGY-
The eligible professional demonstrates to the
satisfaction of the Secretary, in accordance
with subparagraph (C)(i), that during such
period the professional is using certified EHR
technology in a meaningful manner, which shall
include the use of electronic prescribing as
determined to be appropriate by the Secretary.
`(ii) INFORMATION EXCHANGE- The eligible
professional 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 information, for
the electronic exchange of health information to
improve the quality of health care, such as
promoting care coordination.
`(iii) REPORTING ON MEASURES USING EHR- Subject
to subparagraph (B)(ii) and using such certified
EHR technology, the eligible professional
submits information 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 may provide for the use of alternative
means for meeting the requirements of clauses (i),
(ii), and (iii) in the case of an eligible
professional furnishing covered professional services
in a group practice (as defined by the Secretary). 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
measures 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 endorsed by the entity with
a contract with the Secretary under
section 1890(a).
`(II) Prior to any measure being selected
under this subparagraph, the Secretary
shall publish in the Federal Register such
measure and provide for a period of public
comment on such measure.
`(ii) LIMITATION- 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 information electronically, which
may be on a pilot basis.
`(iii) COORDINATION OF REPORTING OF INFORMATION-
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
otherwise required, including reporting under
subsection (k)(2)(C).
`(C) DEMONSTRATION OF MEANINGFUL USE OF CERTIFIED EHR
TECHNOLOGY AND INFORMATION EXCHANGE-
`(i) IN GENERAL- A professional 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 a patient encounter was
documented using certified EHR technology);
`(III) a survey response;
`(IV) reporting under subparagraph
(A)(iii); and
`(V) other means specified by the Secretary.
`(ii) USE OF PART D DATA- Notwithstanding
sections 1860D-15(d)(2)(B) and 1860D-15(f)(2),
the Secretary may use data regarding drug claims
submitted for purposes of section 1860D-15 that
are necessary for purposes of subparagraph (A).
`(3) APPLICATION-
`(A) PHYSICIAN REPORTING SYSTEM RULES- Paragraphs (5),
(6), and (8) of subsection (k) shall apply for
purposes of this subsection in the same manner as they
apply for purposes of such subsection.
`(B) COORDINATION WITH OTHER PAYMENTS- The provisions
of this subsection shall not be taken into account in
applying the provisions of subsection (m) of this
section and of section 1833(m) and any payment under
such provisions shall not be taken into account in
computing allowable charges under this subsection.
`(C) LIMITATIONS ON REVIEW- There shall be no
administrative or judicial review under section 1869,
section 1878, or otherwise of the determination of any
incentive payment under this subsection and the
payment adjustment under subsection (a)(7), including
the determination of a meaningful EHR user under
paragraph (2), a limitation under paragraph (1)(B),
and the exception under subsection (a)(7)(B).
`(D) POSTING ON WEBSITE- The Secretary shall post on
the Internet website of the Centers for Medicare &
Medicaid Services, in an easily understandable format,
a list of the names, business addresses, and business
phone numbers of the eligible professionals who are
meaningful EHR users and, as determined appropriate by
the Secretary, of group practices receiving incentive
payments under paragraph (1).
`(4) CERTIFIED EHR TECHNOLOGY DEFINED- For purposes of this
section, the term `certified EHR technology' means a
qualified electronic health record (as defined in 3000(13)
of the Public Health Service Act) that is certified pursuant
to section 3001(c)(5) of such Act as meeting standards
adopted under section 3004 of such Act that are applicable
to the type of record involved (as determined by the
Secretary, such as an ambulatory electronic health record
for office-based physicians or an inpatient hospital
electronic health record for hospitals).
`(5) DEFINITIONS- For purposes of this subsection:
`(A) COVERED PROFESSIONAL SERVICES- The term `covered
professional services' has the meaning given such term
in subsection (k)(3).
`(B) ELIGIBLE PROFESSIONAL- The term `eligible
professional' means a physician, as defined in section
1861(r).
`(C) REPORTING PERIOD- The term `reporting period'
means any period (or periods), with respect to a
payment year, as specified by the Secretary.'.
(b) Incentive Payment Adjustment- Section 1848(a) of the Social
Security Act (42 U.S.C. 1395w-4(a)) is amended by adding at the
end the following new paragraph:
`(7) INCENTIVES FOR MEANINGFUL USE OF CERTIFIED EHR TECHNOLOGY-
`(A) ADJUSTMENT-
`(i) IN GENERAL- Subject to subparagraphs (B)
and (D), with respect to covered professional
services furnished by an eligible professional
during 2016 or any subsequent payment year, if
the eligible professional is not a meaningful
EHR user (as determined under subsection (o)(2))
for a reporting period for the year, the fee
schedule amount for such services furnished by
such professional during the year (including the
fee schedule amount for purposes of determining
a payment based on such amount) shall be equal
to the applicable percent of the fee schedule
amount that would otherwise apply to such
services under this subsection (determined after
application of paragraph (3) but without regard
to this paragraph).
`(ii) APPLICABLE PERCENT- Subject to clause
(iii), for purposes of clause (i), the term
`applicable percent' means--
`(I) for 2016, 99 percent;
`(II) for 2017, 98 percent; and
`(III) for 2018 and each subsequent year,
97 percent.
`(iii) AUTHORITY TO DECREASE APPLICABLE
PERCENTAGE FOR 2019 AND SUBSEQUENT YEARS- For
2019 and each subsequent year, if the Secretary
finds that the proportion of eligible
professionals who are meaningful EHR users (as
determined under subsection (o)(2)) is less than
75 percent, the applicable percent shall be
decreased by 1 percentage point from the
applicable percent in the preceding year, but in
no case shall the applicable percent be less
than 95 percent.
`(B) SIGNIFICANT HARDSHIP EXCEPTION- The Secretary
may, on a case-by-case basis, exempt an eligible
professional from the application of the payment
adjustment under subparagraph (A) if the Secretary
determines, subject to annual renewal, that compliance
with the requirement for being a meaningful EHR user
would result in a significant hardship, such as in the
case of an eligible professional who practices in a
rural area without sufficient Internet access. In no
case may an eligible professional be granted an
exemption under this subparagraph for more than 5 years.
`(C) APPLICATION OF PHYSICIAN REPORTING SYSTEM RULES-
Paragraphs (5), (6), and (8) of subsection (k) shall
apply for purposes of this paragraph in the same
manner as they apply for purposes of such subsection.
`(D) NON-APPLICATION TO HOSPITAL-BASED ELIGIBLE
PROFESSIONALS- No payment adjustment may be made under
subparagraph (A) in the case of hospital-based
eligible professionals (as defined in subsection
(o)(1)(C)(ii)).
`(E) DEFINITIONS- For purposes of this paragraph:
`(i) COVERED PROFESSIONAL SERVICES- The term
`covered professional services' has the meaning
given such term in subsection (k)(3).
`(ii) ELIGIBLE PROFESSIONAL- The term `eligible
professional' means a physician, as defined in
section 1861(r).
`(iii) REPORTING PERIOD- The term `reporting
period' means, with respect to a year, a period
specified by the Secretary.'.
(c) Application to Certain HMO-Affiliated Eligible Professionals-
Section 1853 of the Social Security Act (42 U.S.C. 1395w-23) is
amended by adding at the end the following new subsection:
`(l) Application of Eligible Professional Incentives for Certain
MA Organizations for Adoption and Meaningful Use of Certified EHR
Technology-
`(1) IN GENERAL- Subject to paragraphs (3) and (4), in the
case of a qualifying MA organization, the provisions of
sections 1848(o) and 1848(a)(7) shall apply with respect to
eligible professionals described in paragraph (2) of the
organization who the organization attests under paragraph
(6) to be meaningful EHR users in a similar manner as they
apply to eligible professionals under such sections.
Incentive payments under paragraph (3) shall be made to and
payment adjustments under paragraph (4) shall apply to such
qualifying organizations.
`(2) ELIGIBLE PROFESSIONAL DESCRIBED- With respect to a
qualifying MA organization, an eligible professional
described in this paragraph is an eligible professional (as
defined for purposes of section 1848(o)) who--
`(A)(i) is employed by the organization; or
`(ii)(I) is employed by, or is a partner of, an entity
that through contract with the organization furnishes
at least 80 percent of the entity's patient care
services to enrollees of such organization; and
`(II) furnishes at least 80 percent of the
professional services of the eligible professional to
enrollees of the organization; and
`(B) furnishes, on average, at least 20 hours per week
of patient care services.
`(3) ELIGIBLE PROFESSIONAL INCENTIVE PAYMENTS-
`(A) IN GENERAL- In applying section 1848(o) under
paragraph (1), instead of the additional payment
amount under section 1848(o)(1)(A) and subject to
subparagraph (B), the Secretary may substitute an
amount determined by the Secretary to the extent
feasible and practical to be similar to the estimated
amount in the aggregate that would be payable if
payment for services furnished by such professionals
was payable under part B instead of this part.
`(B) AVOIDING DUPLICATION OF PAYMENTS-
`(i) IN GENERAL- If an eligible professional
described in paragraph (2) is eligible for the
maximum incentive payment under section
1848(o)(1)(A) for the same payment period, the
payment incentive shall be made only under such
section and not under this subsection.
`(ii) METHODS- In the case of an eligible
professional described in paragraph (2) who is
eligible for an incentive payment under section
1848(o)(1)(A) but is not described in clause (i)
for the same payment period, the Secretary shall
develop a process--
`(I) to ensure that duplicate payments are
not made with respect to an eligible
professional both under this subsection
and under section 1848(o)(1)(A); and
`(II) to collect data from Medicare
Advantage organizations to ensure against
such duplicate payments.
`(C) FIXED SCHEDULE FOR APPLICATION OF LIMITATION ON
INCENTIVE PAYMENTS FOR ALL ELIGIBLE PROFESSIONALS- In
applying section 1848(o)(1)(B)(ii) under subparagraph
(A), in accordance with rules specified by the
Secretary, a qualifying MA organization shall specify
a year (not earlier than 2011) that shall be treated
as the first payment year for all eligible
professionals with respect to such organization.
`(4) PAYMENT ADJUSTMENT-
`(A) IN GENERAL- In applying section 1848(a)(7) under
paragraph (1), instead of the payment adjustment being
an applicable percent of the fee schedule amount for a
year under such section, subject to subparagraph (D),
the payment adjustment under paragraph (1) shall be
equal to the percent specified in subparagraph (B) for
such year of the payment amount otherwise provided
under this section for such year.
`(B) SPECIFIED PERCENT- The percent specified under
this subparagraph for a year is 100 percent minus a
number of percentage points equal to the product of--
`(i) the number of percentage points by which
the applicable percent (under section
1848(a)(7)(A)(ii)) for the year is less than 100
percent; and
`(ii) the Medicare physician expenditure
proportion specified in subparagraph (C) for the
year.
`(C) MEDICARE PHYSICIAN EXPENDITURE PROPORTION- The
Medicare physician expenditure proportion under this
subparagraph for a year is the Secretary's estimate of
the proportion, of the expenditures under parts A and
B that are not attributable to this part, that are
attributable to expenditures for physicians' services.
`(D) APPLICATION OF PAYMENT ADJUSTMENT- In the case
that a qualifying MA organization attests that not all
eligible professionals are meaningful EHR users with
respect to a year, the Secretary shall apply the
payment adjustment under this paragraph based on the
proportion of such eligible professionals that are not
meaningful EHR users for such year.
`(5) QUALIFYING MA ORGANIZATION DEFINED- In this subsection
and subsection (m), the term `qualifying MA organization'
means a Medicare Advantage organization that is organized as
a health maintenance organization (as defined in section
2791(b)(3) of the Public Health Service Act).
`(6) MEANINGFUL EHR USER ATTESTATION- For purposes of this
subsection and subsection (m), a qualifying MA organization
shall submit an attestation, in a form and manner specified
by the Secretary which may include the submission of such
attestation as part of submission of the initial bid under
section 1854(a)(1)(A)(iv), identifying--
`(A) whether each eligible professional described in
paragraph (2), with respect to such organization is a
meaningful EHR user (as defined in section 1848(o)(2))
for a year specified by the Secretary; and
`(B) whether each eligible hospital described in
subsection (m)(1), with respect to such organization,
is a meaningful EHR user (as defined in section
1886(n)(3)) for an applicable period specified by the
Secretary.'.
(d) Conforming Amendments- Section 1853 of the Social Security Act
(42 U.S.C. 1395w-23) is amended--
(1) in subsection (a)(1)(A), by striking `and (i)' and
inserting `(i), and (l)';
(2) in subsection (c)--
(A) in paragraph (1)(D)(i), by striking `section
1886(h)' and inserting `sections 1848(o) and 1886(h)'; and
(B) in paragraph (6)(A), by inserting after `under
part B,' the following: `excluding expenditures
attributable to subsections (a)(7) and (o) of section
1848,'; and
(3) in subsection (f), by inserting `and for payments under
subsection (l)' after `with the organization'.
(e) Conforming Amendments to e-Prescribing-
(1) Section 1848(a)(5)(A) of the Social Security Act (42
U.S.C. 1395w-4(a)(5)(A)) is amended--
(A) in clause (i), by striking `or any subsequent
year' and inserting `, 2013, 2014, or 2015'; and
(B) in clause (ii), by striking `and each subsequent
year' and inserting `and 2015'.
(2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w-4(m)(2))
is amended--
(A) in subparagraph (A), by striking `For 2009' and
inserting `Subject to subparagraph (D), for 2009'; and
(B) by adding at the end the following new subparagraph:
`(D) LIMITATION WITH RESPECT TO EHR INCENTIVE
PAYMENTS- The provisions of this paragraph shall not
apply to an eligible professional (or, in the case of
a group practice under paragraph (3)(C), to the group
practice) if, for the reporting period the eligible
professional (or group practice) receives an incentive
payment under subsection (o)(1)(A) with respect to a
certified EHR technology (as defined in subsection
(o)(4)) that has the capability of electronic
prescribing.'.
SEC. 4312. INCENTIVES FOR HOSPITALS.
(a) Incentive Payment- Section 1886 of the Social Security Act (42
U.S.C. 1395ww) is amended by adding at the end the following new
subsection:
`(n) Incentives for Adoption and Meaningful Use of Certified EHR
Technology-
`(1) IN GENERAL- Subject to the succeeding provisions of
this subsection, with respect to inpatient hospital services
furnished by an eligible hospital during a payment year (as
defined in paragraph (2)(G)), if the eligible hospital is a
meaningful EHR user (as determined under paragraph (3)) for
the reporting period with respect to such year, in addition
to the amount otherwise paid under this section, there also
shall be paid to the eligible hospital, from the Federal
Hospital Insurance Trust Fund established under section
1817, an amount equal to the applicable amount specified in
paragraph (2)(A) for the hospital for such payment year.
`(2) PAYMENT AMOUNT-
`(A) IN GENERAL- Subject to the succeeding
subparagraphs of this paragraph, the applicable amount
specified in this subparagraph for an eligible
hospital for a payment year is equal to the product of
the following:
`(i) INITIAL AMOUNT- The sum of--
`(I) the base amount specified in
subparagraph (B); plus
`(II) the discharge related amount
specified in subparagraph (C) for a
12-month period selected by the Secretary
with respect to such payment year.
`(ii) MEDICARE SHARE- The Medicare share as
specified in subparagraph (D) for the hospital
for a period selected by the Secretary with
respect to such payment year.
`(iii) TRANSITION FACTOR- The transition factor
specified in subparagraph (E) for the hospital
for the payment year.
`(B) BASE AMOUNT- The base amount specified in this
subparagraph is $2,000,000.
`(C) DISCHARGE RELATED AMOUNT- The discharge related
amount specified in this subparagraph for a 12-month
period selected by the Secretary shall be determined
as the sum of the amount, based upon total discharges
(regardless of any source of payment) for the period,
for each discharge up to the 23,000th discharge as
follows:
`(i) For the 1,150th through the 23,000th
discharge, $200.
`(ii) For any discharge greater than the
23,000th, $0.
`(D) MEDICARE SHARE- The Medicare share specified
under this subparagraph for a 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 hospital) of--
`(I) the 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 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 total number of
inpatient-bed-days with respect to the
hospital during such period; and
`(II) the total amount of the 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 total amount
of the hospital's charges during such period.
Insofar as the Secretary determines that data are not
available 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
transition factor specified in this subparagraph
for an eligible hospital for a payment year is
as follows:
`(I) For the first payment year for such
hospital, 1.
`(II) For the second payment year for such
hospital, 3/4 .
`(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
subsection for a payment year may be in the form of a
single consolidated payment or in the form of such
periodic installments 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 hospital, the first fiscal year for
which an incentive payment 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 following 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 a reporting period for a payment year (or,
for purposes of subsection (b)(3)(B)(ix), for a
reporting period under such subsection for a fiscal
year) if each of the following requirements are met:
`(i) MEANINGFUL USE OF CERTIFIED EHR TECHNOLOGY-
The eligible hospital demonstrates to the
satisfaction of the Secretary, in accordance
with subparagraph (C)(i), that during such
period the hospital is using certified EHR
technology in a meaningful manner.
`(ii) INFORMATION EXCHANGE- The eligible
hospital 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 information, for
the electronic exchange of health information to
improve the quality of health care, such as
promoting care coordination.
`(iii) REPORTING ON MEASURES USING EHR- Subject
to subparagraph (B)(ii) and using such certified
EHR technology, the eligible hospital submits
information 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
measures 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
clinical quality measure that has been
selected for purposes of applying
subsection (b)(3)(B)(viii)) being selected
under this subparagraph, the Secretary
shall publish in the Federal Register such
measure and provide for a period of public
comment 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 information electronically, which
may be on a pilot basis.
`(iii) COORDINATION OF REPORTING OF INFORMATION-
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 subsection (b)(3)(B)(viii).
`(C) DEMONSTRATION OF MEANINGFUL USE OF CERTIFIED EHR
TECHNOLOGY AND INFORMATION EXCHANGE-
`(i) IN GENERAL- A 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 technology);
`(III) a survey response;
`(IV) reporting under subparagraph
(A)(iii); and
`(V) other means specified by the Secretary.
`(ii) USE OF PART D DATA- Notwithstanding
sections 1860D-15(d)(2)(B) and 1860D-15(f)(2),
the Secretary may use data regarding drug claims
submitted for purposes of section 1860D-15 that
are necessary for purposes of subparagraph (A).
`(4) APPLICATION-
`(A) LIMITATIONS ON REVIEW- There shall be no
administrative or judicial review under section 1869,
section 1878, or otherwise of the determination of any
incentive payment under this subsection and the
payment adjustment under subsection (b)(3)(B)(ix),
including the determination of a meaningful EHR user
under paragraph (3), determination of measures
applicable to services furnished by eligible hospitals
under this subsection, and the exception under
subsection (b)(3)(B)(ix)(II).
`(B) POSTING ON WEBSITE- The Secretary shall post on
the Internet website of the Centers for Medicare &
Medicaid Services, in an easily understandable format,
a list of the names of the eligible hospitals that are
meaningful EHR users under this subsection or
subsection (b)(3)(B)(ix) and other relevant data as
determined appropriate by the Secretary. The Secretary
shall ensure that a hospital has the opportunity to
review the other relevant data that are to be made
public with respect to the hospital prior to such data
being made public.
`(5) CERTIFIED EHR TECHNOLOGY DEFINED- The term `certified
EHR technology' has the meaning given such term in section
1848(o)(4).
`(6) DEFINITIONS- For purposes of this subsection:
`(A) ELIGIBLE HOSPITAL- The term `eligible hospital'
means a subsection (d) hospital.
`(B) REPORTING PERIOD- The term `reporting period'
means any period (or periods), with respect to a
payment year, as specified by the Secretary.'.
(b) Incentive Market Basket Adjustment- Section 1886(b)(3)(B) of
the Social Security Act (42 U.S.C. 1395ww(b)(3)(B)) is amended--
(1) in clause (viii)(I), by inserting `(or, beginning with
fiscal year 2016, by one-quarter)' after `2.0 percentage
points'; and
(2) by adding at the end the following new clause:
`(ix)(I) For purposes of clause (i) for fiscal year 2016 and each
subsequent fiscal year, in the case of an eligible hospital (as
defined in subsection (n)(6)(A)) that is not a meaningful EHR user
(as defined in subsection (n)(3)) for the reporting period for
such fiscal year, three-quarters of the applicable percentage
increase otherwise applicable under clause (i) for such fiscal
year shall be reduced by 33 1/3 percent for fiscal year 2016, 66
2/3 percent for fiscal year 2017, and 100 percent for fiscal year
2018 and each subsequent fiscal year. Such reduction shall apply
only with respect to the fiscal year involved and the Secretary
shall not take into account such reduction in computing the
applicable percentage increase under clause (i) for a subsequent
fiscal year.
`(II) The Secretary may, on a case-by-case basis, exempt a
subsection (d) hospital from the application of subclause (I) with
respect to a fiscal year if the Secretary determines, subject to
annual renewal, that requiring such hospital to be a meaningful
EHR user during such fiscal year would result in a significant
hardship, such as in the case of a hospital in a rural area
without sufficient Internet access. In no case may a hospital be
granted an exemption under this subclause for more than 5 years.
`(III) For fiscal year 2016 and each subsequent fiscal year, a
State in which hospitals are paid for services under section
1814(b)(3) shall adjust the payments to each subsection (d)
hospital in the State that is not a meaningful EHR user (as
defined in subsection (n)(3)) in a manner that is designed to
result in an aggregate reduction in payments to hospitals in the
State that is equivalent to the aggregate reduction that would
have occurred if payments had been reduced to each subsection (d)
hospital in the State in a manner comparable to the reduction
under the previous provisions of this clause. The State shall
report to the Secretary the methodology it will use to make the
payment adjustment under the previous sentence.
`(IV) For purposes of this clause, the term `reporting period'
means, with respect to a fiscal year, any period (or periods),
with respect to the fiscal year, as specified by the Secretary.'.
(c) Application to Certain HMO-Affiliated Eligible Hospitals-
Section 1853 of the Social Security Act (42 U.S.C. 1395w-23), as
amended by section 4311(c), is further amended by adding at the
end the following new subsection:
`(m) Application of Eligible Hospital Incentives for Certain MA
Organizations for Adoption and Meaningful Use of Certified EHR
Technology-
`(1) APPLICATION- Subject to paragraphs (3) and (4), in the
case of a qualifying MA organization, the provisions of
sections 1886(n) and 1886(b)(3)(B)(ix) shall apply with
respect to eligible hospitals described in paragraph (2) of
the organization which the organization attests under
subsection (l)(6) to be meaningful EHR users in a similar
manner as they apply to eligible hospitals under such
sections. Incentive payments under paragraph (3) shall be
made to and payment adjustments under paragraph (4) shall
apply to such qualifying organizations.
`(2) ELIGIBLE HOSPITAL DESCRIBED- With respect to a
qualifying MA organization, an eligible hospital described
in this paragraph is an eligible hospital that is under
common corporate governance with such organization and
serves individuals enrolled under an MA plan offered by such
organization.
`(3) ELIGIBLE HOSPITAL INCENTIVE PAYMENTS-
`(A) IN GENERAL- In applying section 1886(n)(2) under
paragraph (1), instead of the additional payment
amount under section 1886(n)(2), there shall be
substituted an amount determined by the Secretary to
be similar to the estimated amount in the aggregate
that would be payable if payment for services
furnished by such hospitals was payable under part A
instead of this part. In implementing the previous
sentence, the Secretary--
`(i) shall, insofar as data to determine the
discharge related amount under section
1886(n)(2)(C) for an eligible hospital are not
available to the Secretary, use such alternative
data and methodology to estimate such discharge
related amount as the Secretary determines
appropriate; and
`(ii) shall, insofar as data to determine the
medicare share described in section
1886(n)(2)(D) for an eligible hospital are not
available to the Secretary, use such alternative
data and methodology to estimate such share,
which data and methodology may include use of
the inpatient bed days (or discharges) with
respect to an eligible hospital during the
appropriate period which are attributable to
both individuals for whom payment may be made
under part A or individuals enrolled in an MA
plan under a Medicare Advantage organization
under this part as a proportion of the total
number of patient-bed-days (or discharges) with
respect to such hospital during such period.
`(B) AVOIDING DUPLICATION OF PAYMENTS-
`(i) IN GENERAL- In the case of a hospital that
for a payment year is an eligible hospital
described in paragraph (2), is an eligible
hospital under section 1886(n), and for which at
least one-third of their discharges (or
bed-days) of Medicare patients for the year are
covered under part A, payment for the payment
year shall be made only under section 1886(n)
and not under this subsection.
`(ii) METHODS- In the case of a hospital that is
an eligible hospital described in paragraph (2)
and also is eligible for an incentive payment
under section 1886(n) but is not described in
clause (i) for the same payment period, the
Secretary shall develop a process--
`(I) to ensure that duplicate payments are
not made with respect to an eligible
hospital both under this subsection and
under section 1886(n); and
`(II) to collect data from Medicare
Advantage organizations to ensure against
such duplicate payments.
`(4) PAYMENT ADJUSTMENT-
`(A) Subject to paragraph (3), in the case of a
qualifying MA organization (as defined in section
1853(l)(5)), if, according to the attestation of the
organization submitted under subsection (l)(6) for an
applicable period, one or more eligible hospitals (as
defined in section 1886(n)(6)(A)) that are under
common corporate governance with such organization and
that serve individuals enrolled under a plan offered
by such organization are not meaningful EHR users (as
defined in section 1886(n)(3)) with respect to a
period, the payment amount payable under this section
for such organization for such period shall be the
percent specified in subparagraph (B) for such period
of the payment amount otherwise provided under this
section for such period.
`(B) SPECIFIED PERCENT- The percent specified under
this subparagraph for a year is 100 percent minus a
number of percentage points equal to the product of--
`(i) the number of the percentage point
reduction effected under section
1886(b)(3)(B)(ix)(I) for the period; and
`(ii) the Medicare hospital expenditure
proportion specified in subparagraph (C) for the
year.
`(C) MEDICARE HOSPITAL EXPENDITURE PROPORTION- The
Medicare hospital expenditure proportion under this
subparagraph for a year is the Secretary's estimate of
the proportion, of the expenditures under parts A and
B that are not attributable to this part, that are
attributable to expenditures for inpatient hospital
services.
`(D) APPLICATION OF PAYMENT ADJUSTMENT- In the case
that a qualifying MA organization attests that not all
eligible hospitals are meaningful EHR users with
respect to an applicable period, the Secretary shall
apply the payment adjustment under this paragraph
based on a methodology specified by the Secretary,
taking into account the proportion of such eligible
hospitals, or discharges from such hospitals, that are
not meaningful EHR users for such period.'.
(d) Conforming Amendments-
(1) Section 1814(b) of the Social Security Act (42 U.S.C.
1395f(b)) is amended--
(A) in paragraph (3), in the matter preceding
subparagraph (A), by inserting `, subject to section
1886(d)(3)(B)(ix)(III),' after `then'; and
(B) by adding at the end the following: `For purposes
of applying paragraph (3), there shall be taken into
account incentive payments, and payment adjustments
under subsection (b)(3)(B)(ix) or (n) of section 1886.'.
(2) Section 1851(i)(1) of the Social Security Act (42 U.S.C.
1395w-21(i)(1)) is amended by striking `and 1886(h)(3)(D)'
and inserting `1886(h)(3)(D), and 1853(m)'.
(3) Section 1853 of the Social Security Act (42 U.S.C.
1395w-23), as amended by section 4311(d)(1), is amended--
(A) in subsection (c)--
(i) in paragraph (1)(D)(i), by striking
`1848(o)' and inserting `, 1848(o), and
1886(n)'; and
(ii) in paragraph (6)(A), by inserting `and
subsections (b)(3)(B)(ix) and (n) of section
1886' after `section 1848'; and
(B) in subsection (f), by inserting `and subsection
(m)' after `under subsection (l)'.
SEC. 4313. TREATMENT OF PAYMENTS AND SAVINGS; IMPLEMENTATION FUNDING.
(a) Premium Hold Harmless-
(1) IN GENERAL- Section 1839(a)(1) of the Social Security
Act (42 U.S.C. 1395r(a)(1)) is amended by adding at the end
the following: `In applying this paragraph there shall not
be taken into account additional payments under section
1848(o) and section 1853(l)(3) and the Government
contribution under section 1844(a)(3).'.
(2) PAYMENT- Section 1844(a) of such Act (42 U.S.C.
1395w(a)) is amended--
(A) in paragraph (2), by striking the period at the
end and inserting `; plus'; and
(B) by adding at the end the following new paragraph:
`(3) a Government contribution equal to the amount of
payment incentives payable under sections 1848(o) and
1853(l)(3).'.
(b) Medicare Improvement Fund- Section 1898 of the Social Security
Act (42 U.S.C. 1395iii), as added by section 7002(a) of the
Supplemental Appropriations Act, 2008 (Public Law 110-252) and as
amended by section 188(a)(2) of the Medicare Improvements for
Patients and Providers Act of 2008 (Public Law 110-275; 122 Stat.
2589) and by section 6 of the QI Program Supplemental Funding Act
of 2008, is amended--
(1) in subsection (a)--
(A) by inserting `medicare' before `fee-for-service'; and
(B) by inserting before the period at the end the
following: `including, but not limited to, an increase
in the conversion factor under section 1848(d) to
address, in whole or in part, any projected shortfall
in the conversion factor for 2014 relative to the
conversion factor for 2008 and adjustments to payments
for items and services furnished by providers of
services and suppliers under such original medicare
fee-for-service program'; and
(2) in subsection (b)--
(A) in paragraph (1), by striking `during fiscal year
2014,' and all that follows and inserting the
following: `during--
`(A) fiscal year 2014, $22,290,000,000; and
`(B) fiscal year 2020 and each subsequent fiscal year,
the Secretary's estimate, as of July 1 of the fiscal
year, of the aggregate reduction in expenditures under
this title during the preceding fiscal year directly
resulting from the reduction in payment amounts under
sections 1848(a)(7), 1853(l)(4), 1853(m)(4), and
1886(b)(3)(B)(ix).'; and
(B) by adding at the end the following new paragraph:
`(4) NO EFFECT ON PAYMENTS IN SUBSEQUENT YEARS- In the case
that expenditures from the Fund are applied to, or otherwise
affect, a payment rate for an item or service under this
title for a year, the payment rate for such item or service
shall be computed for a subsequent year as if such
application or effect had never occurred.'.
(c) Implementation Funding- In addition to funds otherwise
available, out of any funds in the Treasury not otherwise
appropriated, there are appropriated to the Secretary of Health
and Human Services for the Center for Medicare & Medicaid Services
Program Management Account, $60,000,000 for each of fiscal years
2009 through 2015 and $30,000,000 for each succeeding fiscal year
through fiscal year 2019, which shall be available for purposes of
carrying out the provisions of (and amendments made by) this part.
Amounts appropriated under this subsection for a fiscal year shall
be available until expended.
SEC. 4314. STUDY ON APPLICATION OF EHR PAYMENT INCENTIVES FOR
PROVIDERS NOT RECEIVING OTHER INCENTIVE PAYMENTS.
(a) Study-
(1) IN GENERAL- The Secretary of Health and Human Services
shall conduct a study to determine the extent to which and
manner in which payment incentives (such as under title
XVIII or XIX of the Social Security Act) and other funding
for purposes of implementing and using certified EHR
technology (as defined in section 3000 of the Public Health
Service Act) should be made available to health care
providers who are receiving minimal or no payment incentives
or other funding under this Act, under title XVIII or XIX of
the Social Security Act, or otherwise, for such purposes.
(2) DETAILS OF STUDY- Such study shall include an
examination of--
(A) the adoption rates of certified EHR technology by
such health care providers;
(B) the clinical utility of such technology by such
health care providers;
(C) whether the services furnished by such health care
providers are appropriate for or would benefit from
the use of such technology;
(D) the extent to which such health care providers
work in settings that might otherwise receive an
incentive payment or other funding under this Act,
title XVIII or XIX of the Social Security Act, or
otherwise;
(E) the potential costs and the potential benefits of
making payment incentives and other funding available
to such health care providers; and
(F) any other issues the Secretary deems to be
appropriate.
(b) Report- Not later than June 30, 2010, the Secretary shall
submit to Congress a report on the findings and conclusions of the
study conducted under subsection (a).
/PART III--MEDICAID FUNDING/
SEC. 4321. MEDICAID PROVIDER HIT ADOPTION AND OPERATION PAYMENTS;
IMPLEMENTATION FUNDING.
(a) In General- Section 1903 of the Social Security Act (42 U.S.C.
1396b) is amended--
(1) in subsection (a)(3)--
(A) by striking `and' at the end of subparagraph (D);
(B) by striking `plus' at the end of subparagraph (E)
and inserting `and'; and
(C) by adding at the end the following new subparagraph:
`(F)(i) 100 percent of so much of the sums expended
during such quarter as are attributable to payments
for certified EHR technology (and support services
including maintenance and training that is for, or is
necessary for the adoption and operation of, such
technology) by Medicaid providers described in
subsection (t)(1); and
`(ii) 90 percent of so much of the sums expended
during such quarter as are attributable to payments
for reasonable administrative expenses related to the
administration of payments described in clause (i) if
the State meets the condition described in subsection
(t)(9); plus'; and
(2) by inserting after subsection (s) the following new
subsection:
`(t)(1)(A) For purposes of subsection (a)(3)(F), the payments for
certified EHR technology (and support services including
maintenance that is for, or is necessary for the operation of,
such technology) by Medicaid providers described in this paragraph
are payments made by the State in accordance with this subsection
of the applicable percent (as specified in subparagraph (B)) of
the net allowable costs of Medicaid providers (as defined in
paragraph (2)) for such technology (and support services).
`(B) For purposes of subparagraph (A), the applicable percent is--
`(i) in the case of a Medicaid provider described in
paragraph (2)(A), 85 percent; and
`(ii) in the case of a Medicaid provider described in
paragraph (2)(B), 100 percent.
`(2) In this subsection and subsection (a)(3)(F), the term
`Medicaid provider' means--
`(A) an eligible professional (as defined in paragraph
(3)(B)) who is not hospital-based and has at least 30
percent of the professional's patient volume (as estimated
in accordance with standards established by the Secretary)
attributable to individuals who are receiving medical
assistance under this title; and
`(B)(i) a children's hospital, (ii) an acute-care hospital
that is not described in clause (i) and that has at least 10
percent of the hospital's patient volume (as estimated in
accordance with standards established by the Secretary)
attributable to individuals who are receiving medical
assistance under this title, or (iii) a Federally-qualified
health center or rural health clinic that has at least 30
percent of the center's or clinic's patient volume (as
estimated in accordance with standards established by the
Secretary) attributable to individuals who are receiving
medical assistance under this title.
An eligible professional shall not qualify as a Medicaid provider
under this subsection unless the eligible professional has waived,
in a manner specified by the Secretary, any right to payment under
section 1848(o) with respect to the adoption or support of
certified EHR technology by the professional. In applying clauses
(ii) and (iii) of subparagraph (B), the standards established by
the Secretary for patient volume shall include individuals
enrolled in a Medicaid managed care plan (under section 1903(m) or
section 1932).
`(3) In this subsection and subsection (a)(3)(F):
`(A) The term `certified EHR technology' means a qualified
electronic health record (as defined in 3000(13) of the
Public Health Service Act) that is certified pursuant to
section 3001(c)(5) of such Act as meeting standards adopted
under section 3004 of such Act that are applicable to the
type of record involved (as determined by the Secretary,
such as an ambulatory electronic health record for
office-based physicians or an inpatient hospital electronic
health record for hospitals).
`(B) The term `eligible professional' means a physician as
defined in paragraphs (1) and (2) of section 1861(r), and
includes a certified nurse mid-wife and a nurse practitioner.
`(C) The term `hospital-based' means, with respect to an
eligible professional, a professional (such as a
pathologist, anesthesiologist, or emergency physician) who
furnishes substantially all of the individual's professional
services in a hospital setting (whether inpatient or
outpatient) and through the use of the facilities and
equipment, including computer equipment, of the hospital.
`(4)(A) The term `allowable costs' means, with respect to
certified EHR technology of a Medicaid provider, costs of such
technology (and support services including maintenance and
training that is for, or is necessary for the adoption and
operation of, such technology) as determined by the Secretary to
be reasonable.
`(B) The term `net allowable costs' means allowable costs reduced
by any payment that is made to the Medicaid provider involved from
any other source that is directly attributable to payment for
certified EHR technology or services described in subparagraph (A).
`(C) In no case shall--
`(i) the aggregate allowable costs under this subsection
(covering one or more years) with respect to a Medicaid
provider described in paragraph (2)(A) for purchase and
initial implementation of certified EHR technology (and
services described in subparagraph (A)) exceed $25,000 or
include costs over a period of longer than 5 years;
`(ii) for costs not described in clause (i) relating to the
operation, maintenance, or use of certified EHR technology,
the annual allowable costs under this subsection with
respect to such a Medicaid provider for costs not described
in clause (i) for any year exceed $10,000;
`(iii) payment described in paragraph (1) for costs
described in clause (ii) be made with respect to such a
Medicaid provider over a period of more than 5 years;
`(iv) the aggregate allowable costs under this subsection
with respect to such a Medicaid provider for all costs
exceed $75,000; or
`(v) the allowable costs, whether for purchase and initial
implementation, maintenance, or otherwise, for a Medicaid
provider described in paragraph (2)(B)(iii) exceed such
aggregate or annual limitation as the Secretary shall
establish, based on an amount determined by the Secretary as
being adequate to adopt and maintain certified EHR
technology, consistent with paragraph (6).
`(5) Payments described in paragraph (1) are not in accordance
with this subsection unless the following requirements are met:
`(A) The State provides assurances satisfactory to the
Secretary that amounts received under subsection (a)(3)(F)
with respect to costs of a Medicaid provider are paid
directly to such provider without any deduction or rebate.
`(B) Such Medicaid provider is responsible for payment of
the costs described in such paragraph that are not provided
under this title.
`(C) With respect to payments to such Medicaid provider for
costs other than costs related to the initial adoption of
certified EHR technology, the Medicaid provider demonstrates
meaningful use of certified EHR technology through a means
that is approved by the State and acceptable to the
Secretary, and that may be based upon the methodologies
applied under section 1848(o) or 1886(n).
`(D) To the extent specified by the Secretary, the certified
EHR technology is compatible with State or Federal
administrative management systems.
`(6)(A) In no case shall the payments described in paragraph (1),
with respect to a hospital, exceed in the aggregate the product of--
`(i) the overall hospital EHR amount for the hospital
computed under subparagraph (B); and
`(ii) the Medicaid share for such hospital computed under
subparagraph (C).
`(B) For purposes of this paragraph, the overall hospital EHR
amount, with respect to a hospital, is the sum of the applicable
amounts specified in section 1886(n)(2)(A) for such hospital for
the first 4 payment years (as estimated by the Secretary)
determined as if the Medicare share specified in clause (ii) of
such section were 1. The Secretary shall publish in the Federal
Register the overall hospital EHR amount for each hospital
eligible for payments under this subsection. In computing amounts
under paragraph 1886(n)(2)(C) for payment years after the first
payment year, the Secretary shall assume that in subsequent
payment years discharges increase at the average annual rate of
growth of the most recent 3 years for which discharge data are
available per year.
`(C) The Medicaid share computed under this subparagraph, for a
hospital for a period specified by the Secretary, shall be
calculated in the same manner as the Medicare share under section
1886(n)(2)(D) for such a hospital and period, except that there
shall be substituted for the numerator under clause (i) of such
section the amount that is equal to the number of
inpatient-bed-days (as established by the Secretary) which are
attributable to individuals who are receiving medical assistance
under this title and who are not described in section
1886(n)(2)(D)(i). In computing inpatient-bed-days under the
previous sentence, the Secretary shall take into account
inpatient-bed-days attributable to inpatient-bed-days that are
paid for individuals enrolled in a Medicaid managed care plan
(under section 1903(m) or section 1932).
`(7) With respect to health care providers other than hospitals,
the Secretary shall ensure coordination of the different programs
for payment of such health care providers for adoption or use of
health information technology (including certified EHR
technology), as well as payments for such health care providers
provided under this title or title XVIII, to assure no duplication
of funding.
`(8) In carrying out paragraph (5)(C), the State and Secretary
shall seek, to the maximum extent practicable, to avoid
duplicative requirements from Federal and State Governments to
demonstrate meaningful use of certified EHR technology under this
title and title XVIII. In doing so, the Secretary may deem
satisfaction of requirements for such meaningful use for a payment
year under title XVIII to be sufficient to qualify as meaningful
use under this subsection. The Secretary may also specify the
reporting periods under this subsection in order to carry out this
paragraph.
`(9) In order to be provided Federal financial participation under
subsection (a)(3)(F)(ii), a State must demonstrate to the
satisfaction of the Secretary, that the State--
`(A) is using the funds provided for the purposes of
administering payments under this subsection, including
tracking of meaningful use by Medicaid providers;
`(B) is conducting adequate oversight of the program under
this subsection, including routine tracking of meaningful
use attestations and reporting mechanisms; and
`(C) is pursuing initiatives to encourage the adoption of
certified EHR technology to promote health care quality and
the exchange of health care information under this title,
subject to applicable laws and regulations governing such
exchange.
`(10) The Secretary shall periodically submit reports to the
Committee on Energy and Commerce of the House of Representatives
and the Committee on Finance of the Senate on status, progress,
and oversight of payments under paragraph (1).'.
(b) Implementation Funding- In addition to funds otherwise
available, out of any funds in the Treasury not otherwise
appropriated, there are appropriated to the Secretary of Health
and Human Services for the Center for Medicare & Medicaid Services
Program Management Account, $40,000,000 for each of fiscal years
2009 through 2015 and $20,000,000 for each succeeding fiscal year
through fiscal year 2019, which shall be available for purposes of
carrying out the provisions of (and the amendments made by) this
part. Amounts appropriated under this subsection for a fiscal year
shall be available until expended.
SEC. 4322. MEDICAID NURSING FACILITY GRANT PROGRAM.
(a) In General- The Secretary shall establish a grant program to
enhance the meaningful use of certified electronic health records
in nursing facilities. In establishing such program, the Secretary
shall use payment incentives for meaningful use of certified EHR
technology, similar to those specified in sections 4311, 4312, and
4321, as appropriate. For the purpose of such incentives, the
Secretary shall define meaningful use in a manner so as to be
consistent with such sections to the extent practicable. The
Secretary shall award funds to not more than 10 States to carry
out activities under this section.
(b) Activities- The Secretary shall require a State participating
in the grant program to--
(1) provide payment incentives to nursing facilities
contingent on the demonstration of meaningful use of
certified electronic health records;
(2) require participating nursing facilities to engage in
programs to improve the quality and coordination of care
through the use of certified EHR technology, including for
persons who are repeatedly admitted to acute care hospitals
from the nursing facility and persons who receive services
across multiple medical and social services providers
(including facility and community-based providers); and
(3) provide for training of appropriate personnel in the use
of certified electronic health records.
(c) Targeting- The Secretary shall require a State participating
in the grant program to target nursing facilities with a
significant percentage (but not less than the average in the
State) of the facility's patient volume (as estimated in
accordance with standards established by the Secretary)
attributable to individuals who are receiving medical assistance
under title XIX of the Social Security Act.
(d) Priority- In making grants under this section, the Secretary
shall give priority to States with a high proportion of total
national nursing facility days paid under title XIX of the Social
Security Act.
(e) Limitations on Use of Funds- A State may not make payments to
a nursing facility in excess of 90 percent of the costs of such
nursing facility for the adoption and operation of certified EHR
technology.
(f) Application- No grant may be made to a State under this
section unless the State submits an application to the Secretary
in a form and manner specified by the Secretary.
(g) Report- Not later than the end of the 3-year period beginning
on the date that grants under this section are first awarded, the
Secretary shall submit a report to Congress on the activities
under this grant program and the effect of this program on quality
and coordination of care under title XIX of the Social Security Act.
(h) Appropriation- Out of any money in the Treasury not otherwise
appropriated, there is appropriated to the Secretary of Health and
Human Services to carry out this section $600,000,000, to remain
available until expended.
Subtitle D--Privacy
SEC. 4400. DEFINITIONS.
In this subtitle, except as specified otherwise:
(1) BREACH- The term `breach' means the unauthorized
acquisition, access, use, or disclosure of protected health
information which compromises the security, privacy, or
integrity of protected health information maintained by or
on behalf of a person. Such term does not include any
unintentional acquisition, access, use, or disclosure of
such information by an employee or agent of the covered
entity or business associate involved if such acquisition,
access, use, or disclosure, respectively, was made in good
faith and within the course and scope of the employment or
other contractual relationship of such employee or agent,
respectively, with the covered entity or business associate
and if such information is not further acquired, accessed,
used, or disclosed by such employee or agent.
(2) BUSINESS ASSOCIATE- The term `business associate' has
the meaning given such term in section 160.103 of title 45,
Code of Federal Regulations.
(3) COVERED ENTITY- The term `covered entity' has the
meaning given such term in section 160.103 of title 45, Code
of Federal Regulations.
(4) DISCLOSE- The terms `disclose' and `disclosure' have the
meaning given the term `disclosure' in section 160.103 of
title 45, Code of Federal Regulations.
(5) ELECTRONIC HEALTH RECORD- The term `electronic health
record' means an electronic record of health-related
information on an individual that is created, gathered,
managed, and consulted by authorized health care clinicians
and staff.
(6) HEALTH CARE OPERATIONS- The term `health care operation'
has the meaning given such term in section 164.501 of title
45, Code of Federal Regulations.
(7) HEALTH CARE PROVIDER- The term `health care provider'
has the meaning given such term in section 160.103 of title
45, Code of Federal Regulations.
(8) HEALTH PLAN- The term `health plan' has the meaning
given such term in section 1171(5) of the Social Security Act.
(9) NATIONAL COORDINATOR- The term `National Coordinator'
means the head of the Office of the National Coordinator for
Health Information Technology established under section
3001(a) of the Public Health Service Act, as added by
section 4101.
(10) PAYMENT- The term `payment' has the meaning given such
term in section 164.501 of title 45, Code of Federal
Regulations.
(11) PERSONAL HEALTH RECORD- The term `personal health
record' means an electronic record of individually
identifiable health information on an individual that can be
drawn from multiple sources and that is managed, shared, and
controlled by or for the individual.
(12) PROTECTED HEALTH INFORMATION- The term `protected
health information' has the meaning given such term in
section 160.103 of title 45, Code of Federal Regulations.
(13) SECRETARY- The term `Secretary' means the Secretary of
Health and Human Services.
(14) SECURITY- The term `security' has the meaning given
such term in section 164.304 of title 45, Code of Federal
Regulations.
(15) STATE- The term `State' means each of the several
States, the District of Columbia, Puerto Rico, the Virgin
Islands, Guam, American Samoa, and the Northern Mariana Islands.
(16) TREATMENT- The term `treatment' has the meaning given
such term in section 164.501 of title 45, Code of Federal
Regulations.
(17) USE- The term `use' has the meaning given such term in
section 160.103 of title 45, Code of Federal Regulations.
(18) VENDOR OF PERSONAL HEALTH RECORDS- The term `vendor of
personal health records' means an entity, other than a
covered entity (as defined in paragraph (3)), that offers or
maintains a personal health record.
/PART I--IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS/
SEC. 4401. APPLICATION OF SECURITY PROVISIONS AND PENALTIES TO
BUSINESS ASSOCIATES OF COVERED ENTITIES; ANNUAL GUIDANCE ON
SECURITY PROVISIONS.
(a) Application of Security Provisions- Sections 164.308, 164.310,
164.312, and 164.316 of title 45, Code of Federal Regulations,
shall apply to a business associate of a covered entity in the
same manner that such sections apply to the covered entity. The
additional requirements of this title that relate to security and
that are made applicable with respect to covered entities shall
also be applicable to such a business associate and shall be
incorporated into the business associate agreement between the
business associate and the covered entity.
(b) Application of Civil and Criminal Penalties- In the case of a
business associate that violates any security provision specified
in subsection (a), sections 1176 and 1177 of the Social Security
Act (42 U.S.C. 1320d-5, 1320d-6) shall apply to the business
associate with respect to such violation in the same manner such
sections apply to a covered entity that violates such security
provision.
(c) Annual Guidance- For the first year beginning after the date
of the enactment of this Act and annually thereafter, the
Secretary of Health and Human Services shall, in consultation with
industry stakeholders, annually issue guidance on the most
effective and appropriate technical safeguards for use in carrying
out the sections referred to in subsection (a) and the security
standards in subpart C of part 164 of title 45, Code of Federal
Regulations, including the use of standards developed under
section 3002(b)(2)(B)(vi) of the Public Health Service Act, as
added by section 4101, as such provisions are in effect as of the
date before the enactment of this Act.
SEC. 4402. NOTIFICATION IN THE CASE OF BREACH.
(a) In General- A covered entity that accesses, maintains,
retains, modifies, records, stores, destroys, or otherwise holds,
uses, or discloses unsecured protected health information (as
defined in subsection (h)(1)) shall, in the case of a breach of
such information that is discovered by the covered entity, notify
each individual whose unsecured protected health information has
been, or is reasonably believed by the covered entity to have
been, accessed, acquired, or disclosed as a result of such breach.
(b) Notification of Covered Entity by Business Associate- A
business associate of a covered entity that accesses, maintains,
retains, modifies, records, stores, destroys, or otherwise holds,
uses, or discloses unsecured protected health information shall,
following the discovery of a breach of such information, notify
the covered entity of such breach. Such notice shall include the
identification of each individual whose unsecured protected health
information has been, or is reasonably believed by the business
associate to have been, accessed, acquired, or disclosed during
such breach.
(c) Breaches Treated as Discovered- For purposes of this section,
a breach shall be treated as discovered by a covered entity or by
a business associate as of the first day on which such breach is
known to such entity or associate, respectively, (including any
person, other than the individual committing the breach, that is
an employee, officer, or other agent of such entity or associate,
respectively) or should reasonably have been known to such entity
or associate (or person) to have occurred.
(d) Timeliness of Notification-
(1) IN GENERAL- Subject to subsection (g), all notifications
required under this section shall be made without
unreasonable delay and in no case later than 60 calendar
days after the discovery of a breach by the covered entity
involved (or business associate involved in the case of a
notification required under subsection (b)).
(2) BURDEN OF PROOF- The covered entity involved (or
business associate involved in the case of a notification
required under subsection (b)), shall have the burden of
demonstrating that all notifications were made as required
under this part, including evidence demonstrating the
necessity of any delay.
(e) Methods of Notice-
(1) INDIVIDUAL NOTICE- Notice required under this section to
be provided to an individual, with respect to a breach,
shall be provided promptly and in the following form:
(A) Written notification by first-class mail to the
individual (or the next of kin of the individual if
the individual is deceased) at the last known address
of the individual or the next of kin, respectively,
or, if specified as a preference by the individual, by
electronic mail. The notification may be provided in
one or more mailings as information is available.
(B) In the case in which there is insufficient, or
out-of-date contact information (including a phone
number, email address, or any other form of
appropriate communication) that precludes direct
written (or, if specified by the individual under
subparagraph (A), electronic) notification to the
individual, a substitute form of notice shall be
provided, including, in the case that there are 10 or
more individuals for which there is insufficient or
out-of-date contact information, a conspicuous posting
for a period determined by the Secretary on the home
page of the Web site of the covered entity involved or
notice in major print or broadcast media, including
major media in geographic areas where the individuals
affected by the breach likely reside. Such a notice in
media or web posting will include a toll-free phone
number where an individual can learn whether or not
the individual's unsecured protected health
information is possibly included in the breach.
(C) In any case deemed by the covered entity involved
to require urgency because of possible imminent misuse
of unsecured protected health information, the covered
entity, in addition to notice provided under
subparagraph (A), may provide information to
individuals by telephone or other means, as appropriate.
(2) MEDIA NOTICE- Notice shall be provided to prominent
media outlets serving a State or jurisdiction, following the
discovery of a breach described in subsection (a), if the
unsecured protected health information of more than 500
residents of such State or jurisdiction is, or is reasonably
believed to have been, accessed, acquired, or disclosed
during such breach.
(3) NOTICE TO SECRETARY- Notice shall be provided to the
Secretary by covered entities of unsecured protected health
information that has been acquired or disclosed in a breach.
If the breach was with respect to 500 or more individuals
than such notice must be provided immediately. If the breach
was with respect to less than 500 individuals, the covered
entity involved may maintain a log of any such breach
occurring and annually submit such a log to the Secretary
documenting such breaches occurring during the year involved.
(4) POSTING ON HHS PUBLIC WEBSITE- The Secretary shall make
available to the public on the Internet website of the
Department of Health and Human Services a list that
identifies each covered entity involved in a breach
described in subsection (a) in which the unsecured protected
health information of more than 500 individuals is acquired
or disclosed.
(f) Content of Notification- Regardless of the method by which
notice is provided to individuals under this section, notice of a
breach shall include, to the extent possible, the following:
(1) A brief description of what happened, including the date
of the breach and the date of the discovery of the breach,
if known.
(2) A description of the types of unsecured protected health
information that were involved in the breach (such as full
name, Social Security number, date of birth, home address,
account number, or disability code).
(3) The steps individuals should take to protect themselves
from potential harm resulting from the breach.
(4) A brief description of what the covered entity involved
is doing to investigate the breach, to mitigate losses, and
to protect against any further breaches.
(5) Contact procedures for individuals to ask questions or
learn additional information, which shall include a
toll-free telephone number, an e-mail address, Web site, or
postal address.
(g) Delay of Notification Authorized for Law Enforcement Purposes-
If a law enforcement official determines that a notification,
notice, or posting required under this section would impede a
criminal investigation or cause damage to national security, such
notification, notice, or posting shall be delayed in the same
manner as provided under section 164.528(a)(2) of title 45, Code
of Federal Regulations, in the case of a disclosure covered under
such section.
(h) Unsecured Protected Health Information-
(1) DEFINITION-
(A) IN GENERAL- Subject to subparagraph (B), for
purposes of this section, the term `unsecured
protected health information' means protected health
information that is not secured through the use of a
technology or methodology specified by the Secretary
in the guidance issued under paragraph (2).
(B) EXCEPTION IN CASE TIMELY GUIDANCE NOT ISSUED- In
the case that the Secretary does not issue guidance
under paragraph (2) by the date specified in such
paragraph, for purposes of this section, the term
`unsecured protected health information' shall mean
protected health information that is not secured by a
technology standard that renders protected health
information unusable, unreadable, or indecipherable to
unauthorized individuals and is developed or endorsed
by a standards developing organization that is
accredited by the American National Standards Institute.
(2) GUIDANCE- For purposes of paragraph (1) and section
407(f)(3), not later than the date that is 60 days after the
date of the enactment of this Act, the Secretary shall,
after consultation with stakeholders, issue (and annually
update) guidance specifying the technologies and
methodologies that render protected health information
unusable, unreadable, or indecipherable to unauthorized
individuals, including use of standards developed under
section 3002(b)(2)(B)(vi) of the Public Health Service Act,
as added by section 4101.
(i) Report to Congress on Breaches-
(1) IN GENERAL- Not later than 12 months after the date of
the enactment of this Act and annually thereafter, the
Secretary shall prepare and submit to the Committee on
Finance and 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 containing the information
described in paragraph (2) regarding breaches for which
notice was provided to the Secretary under subsection (e)(3).
(2) INFORMATION- The information described in this paragraph
regarding breaches specified in paragraph (1) shall include--
(A) the number and nature of such breaches; and
(B) actions taken in response to such breaches.
(j) Regulations; Effective Date- To carry out this section, the
Secretary of Health and Human Services shall promulgate interim
final regulations by not later than the date that is 180 days
after the date of the enactment of this title. The provisions of
this section shall apply to breaches that are discovered on or
after the date that is 30 days after the date of publication of
such interim final regulations.
SEC. 4403. EDUCATION ON HEALTH INFORMATION PRIVACY.
(a) Regional Office Privacy Advisors- Not later than 6 months
after the date of the enactment of this Act, the Secretary shall
designate an individual in each regional office of the Department
of Health and Human Services to offer guidance and education to
covered entities, business associates, and individuals on their
rights and responsibilities related to Federal privacy and
security requirements for protected health information.
(b) Education Initiative on Uses of Health Information- Not later
than 12 months after the date of the enactment of this Act, the
Office for Civil Rights within the Department of Health and Human
Services shall develop and maintain a multi-faceted national
education initiative to enhance public transparency regarding the
uses of protected health information, including programs to
educate individuals about the potential uses of their protected
health information, the effects of such uses, and the rights of
individuals with respect to such uses. Such programs shall be
conducted in a variety of languages and present information in a
clear and understandable manner.
SEC. 4404. APPLICATION OF PRIVACY PROVISIONS AND PENALTIES TO
BUSINESS ASSOCIATES OF COVERED ENTITIES.
(a) Application of Contract Requirements- In the case of a
business associate of a covered entity that obtains or creates
protected health information pursuant to a written contract (or
other written arrangement) described in section 164.502(e)(2) of
title 45, Code of Federal Regulations, with such covered entity,
the business associate may use and disclose such protected health
information only if such use or disclosure, respectively, is in
compliance with each applicable requirement of section 164.504(e)
of such title. The additional requirements of this subtitle that
relate to privacy and that are made applicable with respect to
covered entities shall also be applicable to such a business
associate and shall be incorporated into the business associate
agreement between the business associate and the covered entity.
(b) Application of Knowledge Elements Associated With Contracts-
Section 164.504(e)(1)(ii) of title 45, Code of Federal
Regulations, shall apply to a business associate described in
subsection (a), with respect to compliance with such subsection,
in the same manner that such section applies to a covered entity,
with respect to compliance with the standards in sections
164.502(e) and 164.504(e) of such title, except that in applying
such section 164.504(e)(1)(ii) each reference to the business
associate, with respect to a contract, shall be treated as a
reference to the covered entity involved in such contract.
(c) Application of Civil and Criminal Penalties- In the case of a
business associate that violates any provision of subsection (a)
or (b), the provisions of sections 1176 and 1177 of the Social
Security Act (42 U.S.C. 1320d-5, 1320d-6) shall apply to the
business associate with respect to such violation in the same
manner as such provisions apply to a person who violates a
provision of part C of title XI of such Act.
SEC. 4405. RESTRICTIONS ON CERTAIN DISCLOSURES AND SALES OF HEALTH
INFORMATION; ACCOUNTING OF CERTAIN PROTECTED HEALTH INFORMATION
DISCLOSURES; ACCESS TO CERTAIN INFORMATION IN ELECTRONIC FORMAT.
(a) Requested Restrictions on Certain Disclosures of Health
Information- In the case that an individual requests under
paragraph (a)(1)(i)(A) of section 164.522 of title 45, Code of
Federal Regulations, that a covered entity restrict the disclosure
of the protected health information of the individual,
notwithstanding paragraph (a)(1)(ii) of such section, the covered
entity must comply with the requested restriction if--
(1) except as otherwise required by law, the disclosure is
to a health plan for purposes of carrying out payment or
health care operations (and is not for purposes of carrying
out treatment); and
(2) the protected health information pertains solely to a
health care item or service for which the health care
provider involved has been paid out of pocket in full.
(b) Disclosures Required To Be Limited to the Limited Data Set or
the Minimum Necessary-
(1) IN GENERAL-
(A) IN GENERAL- Subject to subparagraph (B), a covered
entity shall be treated as being in compliance with
section 164.502(b)(1) of title 45, Code of Federal
Regulations, with respect to the use, disclosure, or
request of protected health information described in
such section, only if the covered entity limits such
protected health information, to the extent
practicable, to the limited data set (as defined in
section 164.514(e)(2) of such title) or, if needed by
such entity, to the minimum necessary to accomplish
the intended purpose of such use, disclosure, or
request, respectively.
(B) GUIDANCE- Not later than 18 months after the date
of the enactment of this section, the Secretary shall
issue guidance on what constitutes `minimum necessary'
for purposes of subpart E of part 164 of title 45,
Code of Federal Regulation. In issuing such guidance
the Secretary shall take into consideration the
guidance under section 4424(c).
(C) SUNSET- Subparagraph (A) shall not apply on and
after the effective date on which the Secretary issues
the guidance under subparagraph (B).
(2) DETERMINATION OF MINIMUM NECESSARY- For purposes of
paragraph (1), in the case of the disclosure of protected
health information, the covered entity or business associate
disclosing such information shall determine what constitutes
the minimum necessary to accomplish the intended purpose of
such disclosure.
(3) APPLICATION OF EXCEPTIONS- The exceptions described in
section 164.502(b)(2) of title 45, Code of Federal
Regulations, shall apply to the requirement under paragraph
(1) as of the effective date described in section 4423 in
the same manner that such exceptions apply to section
164.502(b)(1) of such title before such date.
(4) RULE OF CONSTRUCTION- Nothing in this subsection shall
be construed as affecting the use, disclosure, or request of
protected health information that has been de-identified.
(c) Accounting of Certain Protected Health Information Disclosures
Required if Covered Entity Uses Electronic Health Record-
(1) IN GENERAL- In applying section 164.528 of title 45,
Code of Federal Regulations, in the case that a covered
entity uses or maintains an electronic health record with
respect to protected health information--
(A) the exception under paragraph (a)(1)(i) of such
section shall not apply to disclosures through an
electronic health record made by such entity of such
information; and
(B) an individual shall have a right to receive an
accounting of disclosures described in such paragraph
of such information made by such covered entity during
only the three years prior to the date on which the
accounting is requested.
(2) REGULATIONS- The Secretary shall promulgate regulations
on what information shall be collected about each disclosure
referred to in paragraph (1)(A) not later than 18 months
after the date on which the Secretary adopts standards on
accounting for disclosure described in the section
3002(b)(2)(B)(iv) of the Public Health Service Act, as added
by section 4101. Such regulations shall only require such
information to be collected through an electronic health
record in a manner that takes into account the interests of
individuals in learning the circumstances under which their
protected health information is being disclosed and takes
into account the administrative burden of accounting for
such disclosures.
(3) CONSTRUCTION- Nothing in this subsection shall be
construed as requiring a covered entity to account for
disclosures of protected health information that are not
made by such covered entity or by a business associate
acting on behalf of the covered entity.
(4) EFFECTIVE DATE-
(A) CURRENT USERS OF ELECTRONIC RECORDS- In the case
of a covered entity insofar as it acquired an
electronic health record as of January 1, 2009,
paragraph (1) shall apply to disclosures, with respect
to protected health information, made by the covered
entity from such a record on and after January 1, 2014.
(B) OTHERS- In the case of a covered entity insofar as
it acquires an electronic health record after January
1, 2009, paragraph (1) shall apply to disclosures,
with respect to protected health information, made by
the covered entity from such record on and after the
later of the following:
(i) January 1, 2011; or
(ii) the date that it acquires an electronic
health record.
(d) Review of Health Care Operations- Not later than 18 months
after the date of the enactment of this title, the Secretary shall
promulgate regulations to eliminate from the definition of health
care operations under section 164.501 of title 45, Code of Federal
Regulations, those activities that can reasonably and efficiently
be conducted through the use of information that is de-identified
(in accordance with the requirements of section 164.514(b) of such
title) or that should require a valid authorization for use or
disclosure. In promulgating such regulations, the Secretary may
choose to narrow or clarify activities that the Secretary chooses
to retain in the definition of health care operations and the
Secretary shall take into account the report under section 424(d).
In such regulations the Secretary shall specify the date on which
such regulations shall apply to disclosures made by a covered
entity, but in no case would such date be sooner than the date
that is 24 months after the date of the enactment of this section.
(e) Prohibition on Sale of Electronic Health Records or Protected
Health Information-
(1) IN GENERAL- Except as provided in paragraph (2), a
covered entity or business associate shall not directly or
indirectly receive remuneration in exchange for any
protected health information of an individual unless the
covered entity obtained from the individual, in accordance
with section 164.508 of title 45, Code of Federal
Regulations, a valid authorization that includes, in
accordance with such section, a specification of whether the
protected health information can be further exchanged for
remuneration by the entity receiving protected health
information of that individual.
(2) EXCEPTIONS- Paragraph (1) shall not apply in the
following cases:
(A) The purpose of the exchange is for research or
public health activities (as described in sections
164.501, 164.512(i), and 164.512(b) of title 45, Code
of Federal Regulations) and the price charged reflects
the costs of preparation and transmittal of the data
for such purpose.
(B) The purpose of the exchange is for the treatment
of the individual and the price charges reflects not
more than the costs of preparation and transmittal of
the data for such purpose.
(C) The purpose of the exchange is the health care
operation specifically described in subparagraph (iv)
of paragraph (6) of the definition of health care
operations in section 164.501 of title 45, Code of
Federal Regulations.
(D) The purpose of the exchange is for remuneration
that is provided by a covered entity to a business
associate for activities involving the exchange of
protected health information that the business
associate undertakes on behalf of and at the specific
request of the covered entity pursuant to a business
associate agreement.
(E) The purpose of the exchange is to provide an
individual with a copy of the individual's protected
health information pursuant to section 164.524 of
title 45, Code of Federal Regulations.
(F) The purpose of the exchange is otherwise
determined by the Secretary in regulations to be
similarly necessary and appropriate as the exceptions
provided in subparagraphs (A) through (E).
(3) REGULATIONS- The Secretary shall promulgate regulations
to carry out paragraph (this subsection, including
exceptions described in paragraph (2), not later than 18
months after the date of the enactment of this title.
(4) EFFECTIVE DATE- Paragraph (1) shall apply to exchanges
occurring on or after the date that is 6 months after the
date of the promulgation of final regulations implementing
this subsection.
(f) Access to Certain Information in Electronic Format- In
applying section 164.524 of title 45, Code of Federal Regulations,
in the case that a covered entity uses or maintains an electronic
health record with respect to protected health information of an
individual--
(1) the individual shall have a right to obtain from such
covered entity a copy of such information in an electronic
format; and
(2) notwithstanding paragraph (c)(4) of such section, any
fee that the covered entity may impose for providing such
individual with a copy of such information (or a summary or
explanation of such information) if such copy (or summary or
explanation) is in an electronic form shall not be greater
than the entity's labor costs in responding to the request
for the copy (or summary or explanation).
(g) Clarification- 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. 4406. CONDITIONS ON CERTAIN CONTACTS AS PART OF HEALTH CARE
OPERATIONS.
(a) Marketing-
(1) IN GENERAL- A communication by a covered entity or
business associate that is about a product or service and
that encourages recipients of the communication to purchase
or use the product or service shall not be considered a
health care operation for purposes of subpart E of part 164
of title 45, Code of Federal Regulations, unless the
communication is made as described in subparagraph (i),
(ii), or (iii) of paragraph (1) of the definition of
marketing in section 164.501 of such title.
(2) PAYMENT FOR CERTAIN COMMUNICATIONS- A covered entity or
business associate may not receive direct or indirect
payment in exchange for making any communication described
in subparagraph (i), (ii), or (iii) of paragraph (1) of the
definition of marketing in section 164.501 of title 45, Code
of Federal Regulations, except--
(A) a business associate of a covered entity may
receive payment from the covered entity for making any
such communication on behalf of the covered entity
that is consistent with the written contract (or other
written arrangement) described in section
164.502(e)(2) of such title between such business
associate and covered entity; or
(B) a covered entity may receive payment in exchange
for making any such communication if the entity
obtains from the recipient of the communication, in
accordance with section 164.508 of title 45, Code of
Federal Regulations, a valid authorization (as
described in paragraph (b) of such section) with
respect to such communication.
(b) Fundraising- Fundraising for the benefit of a covered entity
shall not be considered a health care operation for purposes of
section 164.501 of title 45, Code of Federal Regulations.
(c) Effective Date- This section shall apply to contracting
occurring on or after the effective date specified under section 4423.
SEC. 4407. 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) or (iii) of section
4424(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) or (iii)
of section 4424(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 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 402 shall apply to a notification required under
subsection (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
information 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. 57/a/(a)(1)(B)) regarding unfair or
deceptive 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 4402(h)(2).
(B) EXCEPTION IN CASE TIMELY GUIDANCE NOT ISSUED- In
the case that the Secretary does not issue guidance
under section 4402(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 information unusable, unreadable, or
indecipherable to unauthorized 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 section,
the Secretary of Health and Human Services shall promulgate
interim final regulations by not later than the date that is
180 days after the date of the enactment of this section.
The provisions of this section shall apply to breaches of
security that are discovered on or after the date that is 30
days after the date of publication of such interim final
regulations.
(2) SUNSET- The provisions of this section shall not apply
to breaches of security occurring on or after the earlier of
the following the dates:
(A) The date on which a standard relating to
requirements for entities that are not covered
entities that includes requirements relating to breach
notification has been promulgated by the Secretary.
(B) The date on which a standard relating to
requirements for entities that are not covered
entities that includes requirements relating to breach
notification has been promulgated by the Federal Trade
Commission and has taken effect.
SEC. 4408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CERTAIN ENTITIES.
Each organization, with respect to a covered entity, that provides
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 arrangement) 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. 4409. CLARIFICATION OF APPLICATION OF WRONGFUL DISCLOSURES
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 information without authorization.'.
SEC. 4410. IMPROVED ENFORCEMENT.
(a) In General- Section 1176 of the Social Security Act (42 U.S.C.
1320d-5) is amended--
(1) 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
(2) 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 a
violation of a provision of this part if a preliminary
investigation of the facts of the complaint indicate such a
possible violation due to willful neglect.'.
(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 enactment
of this title, the Secretary of Health and Human Services
shall promulgate regulations to implement such amendments.
(c) Distribution of Certain Civil Monetary Penalties Collected-
(1) IN GENERAL- Subject to the regulation promulgated
pursuant to paragraph (3), any civil monetary penalty or
monetary 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 of 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 recommendations
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
monetary penalties or monetary settlements imposed on or
after the effective date of the regulation.
(d) Tiered Increase in Amount of Civil Monetary Penalties-
(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 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
reasonable 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 paragraph
(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
paragraphs (3) and (4) as paragraphs (2) and (3),
respectively; and
(B) in paragraph (2), as so redesignated--
(i) in subparagraph (A), by striking `in
subparagraph (B), a penalty may not be imposed
under subsection (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 subsection
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:
`(c) 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
complaint, except in any case in which such prior notice is
not feasible, in which case the State shall serve such
notice immediately 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
exercising 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 section,
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 (c)';
(B) in paragraph (2)(A)--
(i) in the matter before clause (i), 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 (c)'; 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 (c)' after `any penalty under
subsection (a)'.
(3) EFFECTIVE DATE- The amendments made by this subsection
shall apply to violations occurring after the date of the
enactment of this Act.
(f) Allowing Continued Use of Corrective Action- Such section is
further amended by adding at the end the following new subsection:
`(d) Allowing Continued Use of Corrective Action- Nothing in this
section shall be construed as preventing the Office of 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. 4411. 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.
SEC. 4412. SPECIAL RULE FOR INFORMATION TO REDUCE MEDICATION
ERRORS AND IMPROVE PATIENT SAFETY.
Nothing under this subtitle shall prevent a pharmacist from
communicating with patients in order to reduce medication errors
and improve patient safety provided there is no remuneration other
than for the treatment of the individual and payment for such
treatment of the individual as defined in 45 CFR 164.501. The
Secretary may by regulation authorize a pharmacy to receive
remuneration that does not exceed their reasonable out-of-pocket
costs for such communications if the Secretary determines that
allowing this remuneration improves patient care and protects
protected health information.
/PART II--RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES;
EFFECTIVE DATE; REPORTS/
SEC. 4421. 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 specification
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 individually
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.
SEC. 4422. 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. 4423. 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. 4424. STUDIES, REPORTS, GUIDANCE.
(a) Report on Compliance-
(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 4411.
(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 Security
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
business 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 indecipherable through
technologies or methodologies recognized by
appropriate professional organization or standard
setting bodies to provide effective security for the
information) that should be applied to--
(i) vendors of personal health records;
(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 covered 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
recommended 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-Identify
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
examination 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.
Subtitle E--Miscellaneous Medicare Provisions
SEC. 4501. MORATORIA ON CERTAIN MEDICARE REGULATIONS.
(a) Delay in Phase Out of Medicare Hospice Budget Neutrality
Adjustment Factor During Fiscal Year 2009- Notwithstanding any
other provision of law, including the final rule published on
August 8, 2008, 73 Federal Register 46464 et seq., relating to
Medicare Program; Hospice Wage Index for Fiscal Year 2009, the
Secretary of Health and Human Services shall not phase out or
eliminate the budget neutrality adjustment factor in the Medicare
hospice wage index before October 1, 2009, and the Secretary shall
recompute and apply the final Medicare hospice wage index for
fiscal year 2009 as if there had been no reduction in the budget
neutrality adjustment factor.
(b) Non-Application of Phased-Out Indirect Medical Education (IME)
Adjustment Factor for Fiscal Year 2009-
(1) IN GENERAL- Section 412.322 of title 42, Code of Federal
Regulations, shall be applied without regard to paragraph
(c) of such section, and the Secretary of Health and Human
Services shall recompute payments for discharges occurring
on or after October 1, 2008, as if such paragraph had never
been in effect.
(2) NO EFFECT ON SUBSEQUENT YEARS- Nothing in paragraph (1)
shall be construed as having any effect on the application
of paragraph (d) of section 412.322 of title 42, Code of
Federal Regulations.
(c) Funding for Implementation- In addition to funds otherwise
available, for purposes of implementing the provisions of
subsections (a) and (b), including costs incurred in reprocessing
claims in carrying out such provisions, the Secretary of Health
and Human Services shall provide for the transfer from the Federal
Hospital Insurance Trust Fund established under section 1817 of
the Social Security Act (42 U.S.C. 1395i) to the Centers for
Medicare & Medicaid Services Program Management Account of
$2,000,000 for fiscal year 2009.
SEC. 4502. LONG-TERM CARE HOSPITAL TECHNICAL CORRECTIONS.
(a) Payment- Subsection (c) of section 114 of the Medicare,
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-173) is
amended--
(1) in paragraph (1)--
(A) by amending the heading to read as follows: `DELAY
IN APPLICATION OF 25 PERCENT PATIENT THRESHOLD PAYMENT
ADJUSTMENT';
(B) by striking `the date of the enactment of this
Act' and inserting `July 1, 2007,'; and
(C) in subparagraph (A), by inserting `or to a
long-term care hospital, or satellite facility, that
as of December 29, 2007, was co-located with an entity
that is a provider-based, off-campus location of a
subsection (d) hospital which did not provide services
payable under section 1886(d) of the Social Security
Act at the off-campus location' after `freestanding
long-term care hospitals'; and
(2) in paragraph (2)--
(A) in subparagraph (B)(ii), by inserting `or that is
described in section 412.22(h)(3)(i) of such title'
before the period; and
(B) in subparagraph (C), by striking `the date of the
enactment of this Act' and inserting `October 1, 2007
(or July 1, 2007, in the case of a satellite facility
described in section 412.22(h)(3)(i) of title 42, Code
of Federal Regulations)'.
(b) Moratorium- Subsection (d)(3)(A) of such section is amended by
striking `if the hospital or facility' and inserting `if the
hospital or facility obtained a certificate of need for an
increase in beds that is in a State for which such certificate of
need is required and that was issued on or after April 1, 2005,
and before December 29, 2007, or if the hospital or facility'.
(c) Effective Date- The amendments made by this section shall be
effective and apply as if included in the enactment of the
Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public Law
110-173).
TITLE V--MEDICAID PROVISIONS
SEC. 5000. TABLE OF CONTENTS OF TITLE.
The table of contents of this title is as follows:
Sec. 5000. Table of contents of title.
Sec. 5001. Temporary increase of Medicaid FMAP.
Sec. 5002. Moratoria on certain regulations.
Sec. 5003. Transitional Medicaid assistance (TMA).
Sec. 5004. Protections for Indians under Medicaid and CHIP.
Sec. 5005. Consultation on Medicaid and CHIP.
Sec. 5006. Temporary increase in DSH allotments during
recession.
SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP.
(a) Permitting Maintenance of FMAP- Subject to subsections (e),
(f), and (g), if the FMAP determined without regard to this
section for a State for--
(1) fiscal year 2009 is less than the FMAP as so determined
for fiscal year 2008, the FMAP for the State for fiscal year
2008 shall be substituted for the State's FMAP for fiscal
year 2009, before the application of this section;
(2) fiscal year 2010 is less than the FMAP as so determined
for fiscal year 2008 or fiscal year 2009 (after the
application of paragraph (1)), the greater of such FMAP for
the State for fiscal year 2008 or fiscal year 2009 shall be
substituted for the State's FMAP for fiscal year 2010,
before the application of this section; and
(3) fiscal year 2011 is less than the FMAP as so determined
for fiscal year 2008, fiscal year 2009 (after the
application of paragraph (1)), or fiscal year 2010 (after
the application of paragraph (2)), the greatest of such FMAP
for the State for fiscal year 2008, fiscal year 2009, or
fiscal year 2010 shall be substituted for the State's FMAP
for fiscal year 2011, before the application of this
section, but only for the first calendar quarter in fiscal
year 2011.
(b) General 4.9 Percentage Point Increase-
(1) IN GENERAL- Subject to subsections (e), (f), and (g) and
paragraph (2), for each State for calendar quarters during
the recession adjustment period (as defined in subsection
(h)(2)), the FMAP (after the application of subsection (a))
shall be increased (without regard to any limitation
otherwise specified in section 1905(b) of the Social
Security Act) by 4.9 percentage points.
(2) SPECIAL ELECTION FOR TERRITORIES- In the case of a State
that is not one of the 50 States or the District of
Columbia, paragraph (1) shall only apply if the State makes
a one-time election, in a form and manner specified by the
Secretary and for the entire recession adjustment period, to
apply the increase in FMAP under paragraph (1) and a 10
percent increase under subsection (d) instead of applying a
20 percent increase under subsection (d).
(c) Additional Adjustment To Reflect Increase in Unemployment-
(1) IN GENERAL- Subject to subsections (e), (f), and (g), in
the case of a State that is a high unemployment State (as
defined in paragraph (2)) for a calendar quarter during the
recession adjustment period, the FMAP (taking into account
the application of subsections (a) and (b)) for such quarter
shall be further increased by the high unemployment
percentage point adjustment specified in paragraph (3) for
the State for the quarter.
(2) HIGH UNEMPLOYMENT STATE-
(A) IN GENERAL- In this subsection, subject to
subparagraph (B), the term `high unemployment State'
means, with respect to a calendar quarter in the
recession adjustment period, a State that is 1 of the
50 States or the District of Columbia and for which
the State unemployment increase percentage (as
computed under paragraph (5)) for the quarter is not
less than 1.5 percentage points.
(B) MAINTENANCE OF STATUS- If a State is a high
unemployment State for a calendar quarter, it shall
remain a high unemployment State for each subsequent
calendar quarter ending before July 1, 2010.
(3) HIGH UNEMPLOYMENT PERCENTAGE POINT ADJUSTMENT-
(A) IN GENERAL- The high unemployment percentage point
adjustment specified in this paragraph for a high
unemployment State for a quarter is equal to the
product of--
(i) the SMAP for such State and quarter
(determined after the application of subsection
(a) and before the application of subsection
(b)); and
(ii) subject to subparagraph (B), the State
unemployment reduction factor specified in
paragraph (4) for the State and quarter.
(B) MAINTENANCE OF ADJUSTMENT LEVEL FOR CERTAIN
QUARTERS- In no case shall the State unemployment
reduction factor applied under subparagraph (A)(ii)
for a State for a quarter (beginning on or after
January 1, 2009, and ending before July 1, 2010) be
less than the State unemployment reduction factor
applied to the State for the previous quarter (taking
into account the application of this subparagraph).
(4) STATE UNEMPLOYMENT REDUCTION FACTOR- In the case of a
high unemployment State for which the State unemployment
increase percentage (as computed under paragraph (5)) with
respect to a calendar quarter is--
(A) not less than 1.5, but is less than 2.5,
percentage points, the State unemployment reduction
factor for the State and quarter is 6 percent;
(B) not less than 2.5, but is less than 3.5,
percentage points, the State unemployment reduction
factor for the State and quarter is 12 percent; or
(C) not less than 3.5 percentage points, the State
unemployment reduction factor for the State and
quarter is 14 percent.
(5) COMPUTATION OF STATE UNEMPLOYMENT INCREASE PERCENTAGE-
(A) IN GENERAL- In this subsection, the `State
unemployment increase percentage' for a State for a
calendar quarter is equal to the number of percentage
points (if any) by which--
(i) the average monthly unemployment rate for
the State for months in the most recent previous
3-consecutive-month period for which data are
available, subject to subparagraph (C); exceeds
(ii) the lowest average monthly unemployment
rate for the State for any 3-consecutive-month
period preceding the period described in clause
(i) and beginning on or after January 1, 2006.
(B) AVERAGE MONTHLY UNEMPLOYMENT RATE DEFINED- In this
paragraph, the term `average monthly unemployment
rate' means the average of the monthly number
unemployed, divided by the average of the monthly
civilian labor force, seasonally adjusted, as
determined based on the most recent monthly
publications of the Bureau of Labor Statistics of the
Department of Labor.
(C) SPECIAL RULE- With respect to--
(i) the first 2 calendar quarters of the
recession adjustment period, the most recent
previous 3-consecutive-month period described in
subparagraph (A)(i) shall be the
3-consecutive-month period beginning with
October 2008; and
(ii) the last 2 calendar quarters of the
recession adjustment period, the most recent
previous 3-consecutive-month period described in
such subparagraph shall be the
3-consecutive-month period beginning with
December 2009.
(d) Increase in Cap on Medicaid Payments to Territories- Subject
to subsections (f) and (g) , with respect to entire fiscal years
occurring during the recession adjustment period and with respect
to fiscal years only a portion of which occurs during such period
(and in proportion to the portion of the fiscal year that occurs
during such period), the amounts otherwise determined for Puerto
Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and
American Samoa under subsections (f) and (g) of section 1108 of
the Social Security Act (42 U.S.C. 1308) shall each be increased
by 20 percent (or, in the case of an election under subsection
(b)(2), 10 percent).
(e) Scope of Application- The increases in the FMAP for a State
under this section shall apply for purposes of title XIX of the
Social Security Act and--
(1) the increases applied under subsections (a), (b), and
(c) shall not apply with respect--
(A) to payments under parts A, B, and D of title IV or
title XXI of such Act (42 U.S.C. 601 et seq. and
1397aa et seq.);
(B) to payments under title XIX of such Act that are
based on the enhanced FMAP described in section
2105(b) of such Act (42 U.S.C. 1397ee(b)); and
(C) to payments for disproportionate share hospital
(DSH) payment adjustments under section 1923 of such
Act (42 U.S.C. 1396r-4); and
(2) the increase provided under subsection (c) shall not
apply with respect to payments under part E of title IV of
such Act.
(f) State Ineligibility and Limitation-
(1) IN GENERAL- Subject to paragraphs (2) and (3), a State
is not eligible for an increase in its FMAP under subsection
(a), (b), or (c), or an increase in a cap amount under
subsection (d), if eligibility standards, methodologies, or
procedures under its State plan under title XIX of the
Social Security Act (including any waiver under such title
or under section 1115 of such Act (42 U.S.C. 1315)) are more
restrictive than the eligibility standards, methodologies,
or procedures, respectively, under such plan (or waiver) as
in effect on July 1, 2008.
(2) STATE REINSTATEMENT OF ELIGIBILITY PERMITTED- Subject to
paragraph (3), a State that has restricted eligibility
standards, methodologies, or procedures under its State plan
under title XIX of the Social Security Act (including any
waiver under such title or under section 1115 of such Act
(42 U.S.C. 1315)) after July 1, 2008, is no longer
ineligible under paragraph (1) beginning with the first
calendar quarter in which the State has reinstated
eligibility standards, methodologies, or procedures that are
no more restrictive than the eligibility standards,
methodologies, or procedures, respectively, under such plan
(or waiver) as in effect on July 1, 2008.
(3) SPECIAL RULES- A State shall not be ineligible under
paragraph (1)--
(A) for the calendar quarters before July 1, 2009, on
the basis of a restriction that was applied after July
1, 2008, and before the date of the enactment of this
Act, if the State, prior to July 1, 2009, reinstated
eligibility standards, methodologies, or procedures
that are no more restrictive than the eligibility
standards, methodologies, or procedures, respectively,
under such plan (or waiver) as in effect on July 1,
2008; or
(B) on the basis of a restriction that was effective
under State law as of July 1, 2008, and would have
been in effect as of such date, but for a delay (of
not longer than 1 calendar quarter) in the approval of
a request for a new waiver under section 1115 of such
Act with respect to such restriction.
(4) State'S APPLICATION TOWARD RAINY DAY FUND- A State is
not eligible for an increase in its FMAP under subsection
(b) or (c), or an increase in a cap amount under subsection
(d), if any amounts attributable (directly or indirectly) to
such increase are deposited or credited into any reserve or
rainy day fund of the State.
(5) RULE OF CONSTRUCTION- Nothing in paragraph (1) or (2)
shall be construed as affecting a State's flexibility with
respect to benefits offered under the State Medicaid program
under title XIX of the Social Security Act (42 U.S.C. 1396
et seq.) (including any waiver under such title or under
section 1115 of such Act (42 U.S.C. 1315)).
(6) NO WAIVER AUTHORITY- The Secretary may not waive the
application of this subsection or subsection (g) under
section 1115 of the Social Security Act or otherwise.
(g) Requirement for Certain States- In the case of a State that
requires political subdivisions within the State to contribute
toward the non-Federal share of expenditures under the State
Medicaid plan required under section 1902(a)(2) of the Social
Security Act (42 U.S.C. 1396a(a)(2)), the State is not eligible
for an increase in its FMAP under subsection (a), (b), or (c), or
an increase in a cap amount under subsection (d), if it requires
that such political subdivisions pay a greater percentage of the
non-Federal share of such expenditures for quarters during the
recession adjustment period, than the percentage that would have
been required by the State under such plan on September 30, 2008,
prior to application of this section.
(h) Definitions- In this section, except as otherwise provided:
(1) FMAP- The term `FMAP' means the Federal medical
assistance percentage, as defined in section 1905(b) of the
Social Security Act (42 U.S.C. 1396d(b)), as determined
without regard to this section except as otherwise specified.
(2) RECESSION ADJUSTMENT PERIOD- The term `recession
adjustment period' means the period beginning on October 1,
2008, and ending on December 31, 2010.
(3) SECRETARY- The term `Secretary' means the Secretary of
Health and Human Services.
(4) SMAP- The term `SMAP' means, for a State, 100 percent
minus the Federal medical assistance percentage.
(5) STATE- The term `State' has the meaning given such term
in section 1101(a)(1) of the Social Security Act (42 U.S.C.
1301(a)(1)) for purposes of title XIX of the Social Security
Act (42 U.S.C. 1396 et seq.).
(i) Sunset- This section shall not apply to items and services
furnished after the end of the recession adjustment period.
SEC. 5002. MORATORIA ON CERTAIN REGULATIONS.
(a) Extension of Moratoria on Certain Medicaid Regulations- The
following sections are each amended by striking `April 1, 2009'
and inserting `July 1, 2009':
(1) Section 7002(a)(1) of the U.S. Troop Readiness,
Veterans' Care, Katrina Recovery, and Iraq Accountability
Appropriations Act, 2007 (Public Law 110-28), as amended by
section 7001(a)(1) of the Supplemental Appropriations Act,
2008 (Public Law 110-252).
(2) Section 206 of the Medicare, Medicaid, and SCHIP
Extension Act of 2007 (Public Law 110-173), as amended by
section 7001(a)(2) of the Supplemental Appropriations Act,
2008 (Public Law 110-252).
(3) Section 7001(a)(3)(A) of the Supplemental Appropriations
Act, 2008 (Public Law 110-252).
(b) Additional Medicaid Moratorium- Notwithstanding any other
provision of law, with respect to expenditures for services
furnished during the period beginning on December 8, 2008 and
ending on June 30, 2009, the Secretary of Health and Human
Services shall not take any action (through promulgation of
regulation, issuance of regulatory guidance, use of Federal
payment audit procedures, or other administrative action, policy,
or practice, including a Medical Assistance Manual transmittal or
letter to State Medicaid directors) to implement the final
regulation relating to clarification of the definition of
outpatient hospital facility services under the Medicaid program
published on November 7, 2008 (73 Federal Register 66187).
SEC. 5003. TRANSITIONAL MEDICAID ASSISTANCE (TMA).
(a) 18-Month Extension-
(1) IN GENERAL- Sections 1902(e)(1)(B) and 1925(f) of the
Social Security Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f))
are each amended by striking `September 30, 2003' and
inserting `December 31, 2010'.
(2) EFFECTIVE DATE- The amendments made by this subsection
shall take effect on July 1, 2009.
(b) State Option of Initial 12-Month Eligibility- Section 1925 of
the Social Security Act (42 U.S.C. 1396r-6) is amended--
(1) in subsection (a)(1), by inserting `but subject to
paragraph (5)' after `Notwithstanding any other provision of
this title';
(2) by adding at the end of subsection (a) the following:
`(5) OPTION OF 12-MONTH INITIAL ELIGIBILITY PERIOD- A State
may elect to treat any reference in this subsection to a
6-month period (or 6 months) as a reference to a 12-month
period (or 12 months). In the case of such an election,
subsection (b) shall not apply.'; and
(3) in subsection (b)(1), by inserting `but subject to
subsection (a)(5)' after `Notwithstanding any other
provision of this title'.
(c) Removal of Requirement for Previous Receipt of Medical
Assistance- Section 1925(a)(1) of such Act (42 U.S.C.
1396r-6(a)(1)), as amended by subsection (b)(1), is further amended--
(1) by inserting `subparagraph (B) and' before `paragraph (5)';
(2) by redesignating the matter after `REQUIREMENT- ' as a
subparagraph (A) with the heading `IN GENERAL- ' and with
the same indentation as subparagraph (B) (as added by
paragraph (3)); and
(3) by adding at the end the following:
`(B) STATE OPTION TO WAIVE REQUIREMENT FOR 3 MONTHS
BEFORE RECEIPT OF MEDICAL ASSISTANCE- A State may, at
its option, elect also to apply subparagraph (A) in
the case of a family that was receiving such aid for
fewer than three months or that had applied for and
was eligible for such aid for fewer than 3 months
during the 6 immediately preceding months described in
such subparagraph.'.
(d) CMS Report on Enrollment and Participation Rates Under TMA-
Section 1925 of such Act (42 U.S.C. 1396r-6), as amended by this
section, is further amended by adding at the end the following new
subsection:
`(g) Collection and Reporting of Participation Information-
`(1) COLLECTION OF INFORMATION FROM STATES- Each State shall
collect and submit to the Secretary (and make publicly
available), in a format specified by the Secretary,
information on average monthly enrollment and average
monthly participation rates for adults and children under
this section and of the number and percentage of children
who become ineligible for medical assistance under this
section whose medical assistance is continued under another
eligibility category or who are enrolled under the State's
child health plan under title XXI. Such information shall be
submitted at the same time and frequency in which other
enrollment information under this title is submitted to the
Secretary.
`(2) ANNUAL REPORTS TO CONGRESS- Using the information
submitted under paragraph (1), the Secretary shall submit to
Congress annual reports concerning enrollment and
participation rates described in such paragraph.'.
(e) Effective Date- The amendments made by subsections (b) through
(d) shall take effect on July 1, 2009.
SEC. 5004. PROTECTIONS FOR INDIANS UNDER MEDICAID AND CHIP.
(a) Premiums and Cost Sharing Protection Under Medicaid-
(1) IN GENERAL- Section 1916 of the Social Security Act (42
U.S.C. 1396o) is amended--
(A) in subsection (a), in the matter preceding
paragraph (1), by striking `and (i)' and inserting `,
(i), and (j)'; and
(B) by adding at the end the following new subsection:
`(j) No Premiums or Cost Sharing for Indians Furnished Items or
Services Directly by Indian Health Programs or Through Referral
Under Contract Health Services-
`(1) NO COST SHARING FOR ITEMS OR SERVICES FURNISHED TO
INDIANS THROUGH INDIAN HEALTH PROGRAMS-
`(A) IN GENERAL- No enrollment fee, premium, or
similar charge, and no deduction, copayment, cost
sharing, or similar charge shall be imposed against an
Indian who is furnished an item or service directly by
the Indian Health Service, an Indian Tribe, Tribal
Organization, or Urban Indian Organization or through
referral under contract health services for which
payment may be made under this title.
`(B) NO REDUCTION IN AMOUNT OF PAYMENT TO INDIAN
HEALTH PROVIDERS- Payment due under this title to the
Indian Health Service, an Indian Tribe, Tribal
Organization, or Urban Indian Organization, or a
health care provider through referral under contract
health services for the furnishing of an item or
service to an Indian who is eligible for assistance
under such title, may not be reduced by the amount of
any enrollment fee, premium, or similar charge, or any
deduction, copayment, cost sharing, or similar charge
that would be due from the Indian but for the
operation of subparagraph (A).
`(2) RULE OF CONSTRUCTION- Nothing in this subsection shall
be construed as restricting the application of any other
limitations on the imposition of premiums or cost sharing
that may apply to an individual receiving medical assistance
under this title who is an Indian.'.
(2) CONFORMING AMENDMENT- Section 1916A(b)(3) of such Act
(42 U.S.C. 1396o-1(b)(3)) is amended--
(A) in subparagraph (A), by adding at the end the
following new clause:
`(vi) An Indian who is furnished an item or
service directly by the Indian Health Service,
an Indian Tribe, Tribal Organization or Urban
Indian Organization or through referral under
contract health services.'; and
(B) in subparagraph (B), by adding at the end the
following new clause:
`(ix) Items and services furnished to an Indian
directly by the Indian Health Service, an Indian
Tribe, Tribal Organization or Urban Indian
Organization or through referral under contract
health services.'.
(3) EFFECTIVE DATE- The amendments made by this subsection
shall take effect on October 1, 2009.
(b) Treatment of Certain Property From Resources for Medicaid and
CHIP Eligibility-
(1) MEDICAID- Section 1902 of the Social Security Act (42
U.S.C. 1396a), as amended by section 3003(a) of the Health
Insurance Assistance for the Unemployed Act of 2009, is
amended by adding at the end the following new subsection:
`(ee) Notwithstanding any other requirement of this title or any
other provision of Federal or State law, a State shall disregard
the following property from resources for purposes of determining
the eligibility of an individual who is an Indian for medical
assistance under this title:
`(1) Property, including real property and improvements,
that is held in trust, subject to Federal restrictions, or
otherwise under the supervision of the Secretary of the
Interior, located on a reservation, including any federally
recognized Indian Tribe's reservation, pueblo, or colony,
including former reservations in Oklahoma, Alaska Native
regions established by the Alaska Native Claims Settlement
Act, and Indian allotments on or near a reservation as
designated and approved by the Bureau of Indian Affairs of
the Department of the Interior.
`(2) For any federally recognized Tribe not described in
paragraph (1), property located within the most recent
boundaries of a prior Federal reservation.
`(3) Ownership interests in rents, leases, royalties, or
usage rights related to natural resources (including
extraction of natural resources or harvesting of timber,
other plants and plant products, animals, fish, and
shellfish) resulting from the exercise of federally
protected rights.
`(4) Ownership interests in or usage rights to items not
covered by paragraphs (1) through (3) that have unique
religious, spiritual, traditional, or cultural significance
or rights that support subsistence or a traditional
lifestyle according to applicable tribal law or custom.'.
(2) APPLICATION TO CHIP- Section 2107(e)(1) of such Act (42
U.S.C. 1397gg(e)(1)) is amended by adding at the end the
following new subparagraph:
`(E) Section 1902(ff) (relating to disregard of
certain property for purposes of making eligibility
determinations).'.
(c) Continuation of Current Law Protections of Certain Indian
Property From Medicaid Estate Recovery- Section 1917(b)(3) of the
Social Security Act (42 U.S.C. 1396p(b)(3)) is amended--
(1) by inserting `(A)' after `(3)'; and
(2) by adding at the end the following new subparagraph:
`(B) The standards specified by the Secretary under
subparagraph (A) shall require that the procedures
established by the State agency under subparagraph (A)
exempt income, resources, and property that are exempt
from the application of this subsection as of April 1,
2003, under manual instructions issued to carry out
this subsection (as in effect on such date) because of
the Federal responsibility for Indian Tribes and
Alaska Native Villages. Nothing in this subparagraph
shall be construed as preventing the Secretary from
providing additional estate recovery exemptions under
this title for Indians.'.
SEC. 5005. CONSULTATION ON MEDICAID AND CHIP.
(a) In General- Section 1139 of the Social Security Act (42 U.S.C.
1320b-9) is amended to read as follows:
`CONSULTATION WITH TRIBAL TECHNICAL ADVISORY GROUP (TTAG)
`Sec. 1139. The Secretary shall maintain within the Centers for
Medicaid & Medicare Services (CMS) a Tribal Technical Advisory
Group, which was first established in accordance with requirements
of the charter dated September 30, 2003, and the Secretary shall
include in such Group a representative of the Urban Indian
Organizations and the Service. The representative of the Urban
Indian Organization shall be deemed to be an elected officer of a
tribal government for purposes of applying section 204(b) of the
Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1534(b)).'.
(b) Solicitation of Advice Under Medicaid and CHIP-
(1) MEDICAID STATE PLAN AMENDMENT- Section 1902(a) of the
Social Security Act (42 U.S.C. 1396a(a)) is amended--
(A) in paragraph (70), by striking `and' at the end;
(B) in paragraph (71), by striking the period at the
end and inserting `; and'; and
(C) by inserting after paragraph (71), the following
new paragraph:
`(72) in the case of any State in which 1 or more Indian
Health Programs or Urban Indian Organizations furnishes
health care services, provide for a process under which the
State seeks advice on a regular, ongoing basis from
designees of such Indian Health Programs and Urban Indian
Organizations on matters relating to the application of this
title that are likely to have a direct effect on such Indian
Health Programs and Urban Indian Organizations and that--
`(A) shall include solicitation of advice prior to
submission of any plan amendments, waiver requests,
and proposals for demonstration projects likely to
have a direct effect on Indians, Indian Health
Programs, or Urban Indian Organizations; and
`(B) may include appointment of an advisory committee
and of a designee of such Indian Health Programs and
Urban Indian Organizations to the medical care
advisory committee advising the State on its State
plan under this title.'.
(2) APPLICATION TO CHIP- Section 2107(e)(1) of such Act (42
U.S.C. 1397gg(e)(1)), as amended by section 5004(b), is
amended by adding at the end the following new subparagraph:
`(F) Section 1902(a)(72) (relating to requiring
certain States to seek advice from designees of Indian
Health Programs and Urban Indian Organizations).'.
(c) Rule of Construction- Nothing in the amendments made by this
section shall be construed as superseding existing advisory
committees, working groups, guidance, or other advisory procedures
established by the Secretary of Health and Human Services or by
any State with respect to the provision of health care to Indians.
SEC. 5006. TEMPORARY INCREASE IN DSH ALLOTMENTS DURING RECESSION.
Section 1923(f)(3) of the Social Security Act (42 U.S.C.
1396r-4(f)(3)) is amended--
(1) in subparagraph (A), by striking `paragraph (6)' and
inserting `paragraph (6) and subparagraph (E)'; and
(2) by adding at the end the following new subparagraph:
`(E) TEMPORARY INCREASE IN ALLOTMENTS DURING RECESSION-
`(i) IN GENERAL- Subject to clause (ii), the DSH
allotment for any State--
`(I) for fiscal year 2009 is equal to
102.5 percent of the DSH allotment that
would be determined under this paragraph
for the State for fiscal year 2009 without
application of this subparagraph,
notwithstanding subparagraph (B);
`(II) for fiscal year 2010 is equal to
102.5 percent of the DSH allotment for the
State for fiscal year 2009, as determined
under subclause (I); and
`(III) for each succeeding fiscal year is
equal to the DSH allotment for the State
under this paragraph determined without
applying subclauses (I) and (II).
`(ii) APPLICATION- Clause (i) shall not apply to
a State for a year in the case that the DSH
allotment for such State for such year under
this paragraph determined without applying
clause (i) would grow higher than the DSH
allotment specified under clause (i) for the
State for such year.'.
TITLE VI--BROADBAND COMMUNICATIONS
SEC. 6001. INVENTORY OF BROADBAND SERVICE CAPABILITY AND AVAILABILITY.
(a) Establishment- To provide a comprehensive nationwide inventory
of existing broadband service capability and availability, the
National Telecommunications and Information Administration
(`NTIA') shall develop and maintain a broadband inventory map of
the United States that identifies and depicts the geographic
extent to which broadband service capability is deployed and
available from a commercial provider or public provider throughout
each State.
(b) Public Availability and Interactivity- Not later than 2 years
after the date of enactment of this Act, the NTIA shall make the
broadband inventory map developed and maintained pursuant to this
section accessible by the public on a World Wide Web site of the
NTIA in a form that is interactive and searchable.
SEC. 6002. WIRELESS AND BROADBAND DEPLOYMENT GRANT PROGRAMS.
(a) Grants Authorized-
(1) IN GENERAL- The National Telecommunications and
Information Administration (`NTIA') is authorized to carry
out a program to award grants to eligible entities for the
non-recurring costs associated with the deployment of
broadband infrastructure in rural, suburban, and urban
areas, in accordance with the requirements of this section.
(2) PROGRAM WEBSITE- The NTIA shall develop and maintain a
website to make publicly available information about the
program described in paragraph (1), including--
(A) each prioritization report submitted by a State
under subsection (b);
(B) a list of eligible entities that have applied for
a grant under this section, and the area or areas the
entity proposes to serve; and
(C) the status of each such application, whether
approved, denied, or pending.
(b) State Priorities-
(1) PRIORITIES REPORT SUBMISSION- Not later than 75 days
after the date of enactment of this section, each State
intending to participate in the program under this section
shall submit to the NTIA a report indicating the geographic
areas of the State which--
(A) for the purposes of determining the need for
Wireless Deployment Grants under subsection (c), the
State considers to have the greatest priority for--
(i) wireless voice service in unserved areas; and
(ii) advanced wireless broadband service in
underserved areas; and
(B) for the purposes of determining the need for
Broadband Deployment Grants under subsection (d), the
State considers to have the greatest priority for--
(i) basic broadband service in unserved areas; and
(ii) advanced broadband service in underserved
areas.
(2) LIMITATION- The unserved and underserved areas
identified by a State in the report required by this
subsection shall not represent, in the aggregate, more than
20 percent of the population of such State.
(c) Wireless Deployment Grants-
(1) AUTHORIZED ACTIVITY- The NTIA shall award Wireless
Deployment Grants in accordance with this subsection from
amounts authorized for Wireless Deployment Grants by this
subtitle to eligible entities to deploy necessary
infrastructure for the provision of wireless voice service
or advanced wireless broadband service to end users in
designated areas.
(2) GRANT DISTRIBUTION- The NTIA shall seek to distribute
grants, to the extent possible, so that 25 percent of the
grants awarded under this subsection shall be awarded to
eligible entities for providing wireless voice service to
unserved areas and 75 percent of grants awarded under this
subsection shall be awarded to eligible entities for
providing advanced wireless broadband service to underserved
areas.
(d) Broadband Deployment Grants-
(1) AUTHORIZED ACTIVITY- The NTIA shall award Broadband
Deployment Grants in accordance with this subsection from
amounts authorized for Broadband Deployment Grants by this
subtitle to eligible entities to deploy necessary
infrastructure for the provision of basic broadband service
or advanced broadband service to end users in designated areas.
(2) GRANT DISTRIBUTION- The NTIA shall seek to distribute
grants, to the extent possible, so that 25 percent of the
grants awarded under this subsection shall be awarded to
eligible entities for providing basic broadband service to
unserved areas and 75 percent of grants awarded under this
subsection shall be awarded to eligible entities for
providing advanced broadband service to underserved areas.
(e) Grant Requirements- The NTIA shall--
(1) adopt rules to protect against unjust enrichment; and
(2) ensure that grant recipients--
(A) meet buildout requirements;
(B) maximize use of the supported infrastructure by
the public;
(C) operate basic and advanced broadband service
networks on an open access basis;
(D) operate advanced wireless broadband service on a
wireless open access basis; and
(E) adhere to the principles contained in the Federal
Communications Commission's broadband policy statement
(FCC 05-151, adopted August 5, 2005).
(f) Applications-
(1) SUBMISSION- To be considered for a grant awarded under
subsection (c) or (d), an eligible entity shall submit to
the NTIA an application at such time, in such manner, and
containing such information and assurances as the NTIA may
require. Such an application shall include--
(A) a cost-study estimate for serving the particular
geographic area to be served by the entity;
(B) a proposed build-out schedule to residential
households and small businesses in the area;
(C) for applicants for Wireless Deployment Grants
under subsection (c), a build-out schedule for
geographic coverage of such areas; and
(D) any other requirements the NTIA deems necessary.
(2) SELECTION-
(A) NOTIFICATION- The NTIA shall notify each eligible
entity that has submitted a complete application
whether the entity has been approved or denied for a
grant under this section in a timely fashion.
(B) GRANT DISTRIBUTION CONSIDERATIONS- In awarding
grants under this section, the NTIA shall, to the
extent practical--
(i) award not less than one grant in each State;
(ii) give substantial weight to whether an
application is from an eligible entity to deploy
infrastructure in an area that is an area--
(I) identified by a State in a report
submitted under subsection (b); or
(II) in which the NTIA determines there
will be a significant amount of public
safety or emergency response use of the
infrastructure;
(iii) consider whether an application from an
eligible entity to deploy infrastructure in an
area--
(I) will, if approved, increase the
affordability of, or subscribership to,
service to the greatest population of
underserved users in the area;
(II) will, if approved, enhance service
for health care delivery, education, or
children to the greatest population of
underserved users in the area;
(III) contains concrete plans for
enhancing computer ownership or computer
literacy in the area;
(IV) is from a recipient of more than 20
percent matching grants from State, local,
or private entities for service in the
area and the extent of such commitment;
(V) will, if approved, result in unjust
enrichment because the eligible entity has
applied for, or intends to apply for,
support for the non-recurring costs
through another Federal program for
service in the area; and
(VI) will, if approved, significantly
improve interoperable broadband
communications systems available for use
by public safety and emergency response; and
(iv) consider whether the eligible entity is a
socially and economically disadvantaged small
business concern, as defined under section 8(a)
of the Small Business Act (15 U.S.C. 637).
(g) Coordination and Consultation- The NTIA shall coordinate with
the Federal Communications Commission and shall consult with other
appropriate Federal agencies in implementing this section.
(h) Report Required- The NTIA shall submit an annual report to the
Committee on Energy and Commerce of the House of Representatives
and the Committee on Commerce, Science, and Transportation of the
Senate for 5 years assessing the impact of the grants funded under
this section on the basis of the objectives and criteria described
in subsection (f)(2)(B)(iii).
(i) Rulemaking Authority- The NTIA shall have the authority to
prescribe such rules as necessary to carry out the purposes of
this section.
(j) Definitions- For the purpose of this section--
(1) the term `advanced broadband service' means a service
delivering data to the end user transmitted at a speed of at
least 45 megabits per second downstream and at least 15
megabits per second upstream;
(2) the term `advanced wireless broadband service' means a
wireless service delivering to the end user data transmitted
at a speed of at least 3 megabits per second downstream and
at least 1 megabit per second upstream over an end-to-end
internet protocol wireless network;
(3) the term `basic broadband service' means a service
delivering data to the end user transmitted at a speed of at
least 5 megabits per second downstream and at least 1
megabit per second upstream;
(4) the term `eligible entity' means--
(A) a provider of wireless voice service, advanced
wireless broadband service, basic broadband service,
or advanced broadband service, including a satellite
carrier that provides any such service;
(B) a State or unit of local government, or agency or
instrumentality thereof, that is or intends to be a
provider of any such service; and
(C) any other entity, including construction
companies, tower companies, backhaul companies, or
other service providers, that the NTIA authorizes by
rule to participate in the programs under this
section, if such other entity is required to provide
access to the supported infrastructure on a neutral,
reasonable basis to maximize use;
(5) the term `interoperable broadband communications
systems' means communications systems which enable public
safety agencies to share information among local, State,
Federal, and tribal public safety agencies in the same area
using voice or data signals via advanced wireless broadband
service;
(6) the term `open access' shall be defined by the Federal
Communications Commission not later than 45 days after the
date of enactment of this section;
(7) the term `State' includes the District of Columbia and
the territories and possessions;
(8) the term `underserved area' shall be defined by the
Federal Communications Commission not later than 45 days
after the date of enactment of this section;
(9) the term `unserved area' shall be defined by the Federal
Communications Commission not later than 45 days after the
date of enactment of this section;
(10) the term `wireless open access' shall be defined by the
Federal Communications Commission not later than 45 days
after the date of enactment of this section; and
(11) the term `wireless voice service' means the provision
of two-way, real-time, voice communications using a mobile
service.
(k) Review of Definitions- Not later than 3 months after the date
the NTIA makes a broadband inventory map of the United States
accessible to the public pursuant to section 6001(b), the Federal
Communications Commission shall review the definitions of
`underserved area' and `unserved area', as defined by the
Commission within 45 days after the date of enactment of this Act
(as required by paragraphs (8) and (9) of subsection (j)), and
shall revise such definitions based on the data used by the NTIA
to develop and maintain such map.
SEC. 6003. NATIONAL BROADBAND PLAN.
(a) Report Required- Not later than 1 year after the date of
enactment of this section, the Federal Communications Commission
shall submit to the Committee on Energy and Commerce of the House
of Representatives and the Committee on Commerce, Science, and
Transportation of the Senate, a report containing a national
broadband plan.
(b) Contents of Plan- The national broadband plan required by this
section shall seek to ensure that all people of the United States
have access to broadband capability and shall establish benchmarks
for meeting that goal. The plan shall also include--
(1) an analysis of the most effective and efficient
mechanisms for ensuring broadband access by all people of
the United States;
(2) a detailed strategy for achieving affordability of such
service and maximum utilization of broadband infrastructure
and service by the public; and
(3) a plan for use of broadband infrastructure and services
in advancing consumer welfare, civic participation, public
safety and homeland security, community development, health
care delivery, energy independence and efficiency,
education, worker training, private sector investment,
entrepreneurial activity, job creation and economic growth,
and other national purposes.
TITLE VII--ENERGY
SEC. 7001. TECHNICAL CORRECTIONS TO THE ENERGY INDEPENDENCE AND
SECURITY ACT OF 2007.
(a) Section 543(a) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17153(a)) is amended--
(1) by redesignating paragraphs (2) through (4) as
paragraphs (3) through (5), respectively; and
(2) by striking paragraph (1) and inserting the following:
`(1) 34 percent to eligible units of local
government-alternative 1, in accordance with subsection (b);
`(2) 34 percent to eligible units of local
government-alternative 2, in accordance with subsection (b);'.
(b) Section 543(b) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17153(b)) is amended by striking `subsection
(a)(1)' and inserting `subsection (a)(1) or (2)'.
(c) Section 548(a)(1) of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17158(a)(1)) is amending by striking `;
provided' and all that follows through `541(3)(B)'.
SEC. 7002. AMENDMENTS TO TITLE XIII OF THE ENERGY INDEPENDENCE AND
SECURITY ACT OF 2007.
Title XIII of the Energy Independence and Security Act of 2007 (42
U.S.C. 17381 and following) is amended as follows:
(1) By amending subparagraph (A) of section 1304(b)(3) to
read as follows:
`(A) IN GENERAL- In carrying out the initiative, the
Secretary shall provide financial support to smart
grid demonstration projects in urban, suburban, and
rural areas, including areas where electric system
assets are controlled by tax-exempt entities and areas
where electric system assets are controlled by
investor-owned utilities.'.
(2) By amending subparagraph (C) of section 1304(b)(3) to
read as follows:
`(C) FEDERAL SHARE OF COST OF TECHNOLOGY INVESTMENTS-
The Secretary shall provide to an electric utility
described in subparagraph (B) or to other parties
financial assistance for use in paying an amount equal
to not more than 50 percent of the cost of qualifying
advanced grid technology investments made by the
electric utility or other party to carry out a
demonstration project.'.
(3) By inserting after section 1304(b)(3)(D) the following
new subparagraphs:
`(E) AVAILABILITY OF DATA- The Secretary shall
establish and maintain a smart grid information
clearinghouse in a timely manner which will make data
from smart grid demonstration projects and other
sources available to the public. As a condition of
receiving financial assistance under this subsection,
a utility or other participant in a smart grid
demonstration project shall provide such information
as the Secretary may require to become available
through the smart grid information clearinghouse in
the form and within the timeframes as directed by the
Secretary. The Secretary shall assure that business
proprietary information and individual customer
information is not included in the information made
available through the clearinghouse.
`(F) OPEN PROTOCOLS AND STANDARDS- The Secretary shall
require as a condition of receiving funding under this
subsection that demonstration projects utilize
Internet-based or other open protocols and standards
if available and appropriate.'.
(4) By amending paragraph (2) of section 1304(c) to read as
follows:
`(2) to carry out subsection (b), such sums as may be
necessary.'.
(5) By amending subsection (a) of section 1306 by striking
`reimbursement of one-fifth (20 percent)' and inserting
`grants of up to one-half (50 percent)'.
(6) By striking the last sentence of subsection (b)(9) of
section 1306.
(7) By striking `are eligible for' in subsection (c)(1) of
section 1306 and inserting `utilize'.
(8) By amending subsection (e) of section 1306 to read as
follows:
`(e) Procedures and Rules- The Secretary shall--
`(1) establish within 60 days after the enactment of the
American Recovery and Reinvestment Act of 2009 procedures by
which applicants can obtain grants of not more than one-half
of their documented costs;
`(2) require as a condition of receiving a grant under this
section that grant recipients utilize Internet-based or
other open protocols and standards if available and appropriate;
`(3) establish procedures to ensure that there is no
duplication or multiple payment or recovery for the same
investment or costs, that the grant goes to the party making
the actual expenditures for qualifying smart grid
investments, and that the grants made have significant
effect in encouraging and facilitating the development of a
smart grid;
`(4) maintain public records of grants made, recipients, and
qualifying smart grid investments which have received grants;
`(5) establish procedures to provide advance payment of
moneys up to the full amount of the grant award; and
`(6) have and exercise the discretion to deny grants for
investments that do not qualify in the reasonable judgment
of the Secretary.'.
SEC. 7003. RENEWABLE ENERGY AND ELECTRIC POWER TRANSMISSION LOAN
GUARANTEE PROGRAM.
(a) Amendment- Title XVII of the Energy Policy Act of 2005 (42
U.S.C. 16511 et seq.) is amended by adding the following at the end:
`SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOYMENT OF RENEWABLE
ENERGY AND ELECTRIC POWER TRANSMISSION PROJECTS.
`(a) In General- Notwithstanding section 1703, the Secretary may
make guarantees under this section only for commercial technology
projects under subsection (b) that will commence construction not
later than September 30, 2011.
`(b) Categories- Projects from only the following categories shall
be eligible for support under this section:
`(1) Renewable energy systems, including incremental
hydropower, that generate electricity.
`(2) Electric power transmission systems, including
upgrading and reconductoring projects.
`(3) Leading edge biofuel projects that will use
technologies performing at the pilot or demonstration scale
that the Secretary determines are likely to become
commercial technologies and will produce transportation
fuels that substantially reduce life-cycle greenhouse gas
emissions compared to other transportation fuels.
`(c) Factors Relating to Electric Power Transmission Systems- In
determining to make guarantees to projects described in subsection
(b)(2), the Secretary shall consider the following factors:
`(1) The viability of the project without guarantees.
`(2) The availability of other Federal and State incentives.
`(3) The importance of the project in meeting reliability needs.
`(4) The effect of the project in meeting a State or
region's environment (including climate change) and energy
goals.
`(d) Wage Rate Requirements- The Secretary shall require that each
recipient of support under this section provide reasonable
assurance that all laborers and mechanics employed in the
performance of the project for which the assistance is provided,
including those employed by contractors or subcontractors, will be
paid wages at rates not less than those prevailing on similar work
in the locality as determined by the Secretary of Labor in
accordance with subchapter IV of chapter 31 of part A of subtitle
II of title 40, United States Code (commonly referred to as the
`Davis-Bacon Act').
`(e) Limitation- Funding under this section for projects described
in subsection (b)(3) shall not exceed $500,000,000.
`(f) Sunset- The authority to enter into guarantees under this
section shall expire on September 30, 2011.'.
(b) Table of Contents Amendment- The table of contents for the
Energy Policy Act of 2005 is amended by inserting after the item
relating to section 1704 the following new item:
`Sec. 1705. Temporary program for rapid deployment of
renewable energy and electric power transmission projects.'.
SEC. 7004. WEATHERIZATION ASSISTANCE PROGRAM AMENDMENTS.
(a) Income Level- Section 412(7) of the Energy Conservation and
Production Act (42 U.S.C. 6862(7)) is amended by striking `150
percent' both places it appears and inserting `200 percent'.
(b) Assistance Level Per Dwelling Unit- Section 415(c)(1) of the
Energy Conservation and Production Act (42 U.S.C. 6865(c)(1)) is
amended by striking `$2,500' and inserting `$5,000'.
(c) Effective Use of Funds- In providing funds made available by
this Act for the Weatherization Assistance Program, the Secretary
may encourage States to give priority to using such funds for the
most cost-effective efficiency activities, which may include
insulation of attics, if, in the Secretary's view, such use of
funds would increase the effectiveness of the program.
SEC. 7005. RENEWABLE ELECTRICITY TRANSMISSION STUDY.
In completing the 2009 National Electric Transmission Congestion
Study, the Secretary of Energy shall include--
(1) an analysis of the significant potential sources of
renewable energy that are constrained in accessing
appropriate market areas by lack of adequate transmission
capacity;
(2) an analysis of the reasons for failure to develop the
adequate transmission capacity;
(3) recommendations for achieving adequate transmission
capacity;
(4) an analysis of the extent to which legal challenges
filed at the State and Federal level are delaying the
construction of transmission necessary to access renewable
energy; and
(5) an explanation of assumptions and projections made in
the Study, including--
(A) assumptions and projections relating to energy
efficiency improvements in each load center;
(B) assumptions and projections regarding the location
and type of projected new generation capacity; and
(C) assumptions and projections regarding projected
deployment of distributed generation infrastructure.
SEC. 7006. ADDITIONAL STATE ENERGY GRANTS.
(a) In General- Amounts appropriated in paragraph (6) under the
heading `Department of Energy--Energy Programs--Energy Efficiency
and Renewable Energy' in title V of division A of this Act shall
be available to the Secretary of Energy for making additional
grants under part D of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6321 et seq.). The Secretary shall
make grants under this section in excess of the base allocation
established for a State under regulations issued pursuant to the
authorization provided in section 365(f) of such Act only if the
governor of the recipient State notifies the Secretary of Energy
that the governor will seek, to the extent of his or her
authority, to ensure that each of the following will occur:
(1) The applicable State regulatory authority will implement
the following regulatory policies for each electric and gas
utility with respect to which the State regulatory authority
has ratemaking authority:
(A) Policies that ensure that a utility's recovery of
prudent fixed costs of service is timely and
independent of its retail sales, without in the
process shifting prudent costs from variable to fixed
charges. This cost shifting constraint shall not apply
to rate designs adopted prior to the date of enactment
of this Act.
(B) Cost recovery for prudent investments by utilities
in energy efficiency.
(C) An earnings opportunity for utilities associated
with cost-effective energy efficiency savings.
(2) The State, or the applicable units of local government
that have authority to adopt building codes, will implement
the following:
(A) A building energy code (or codes) for residential
buildings that meets or exceeds the most recently
published International Energy Conservation Code, or
achieves equivalent or greater energy savings.
(B) A building energy code (or codes) for commercial
buildings throughout the State that meets or exceeds
the ANSI/ASHRAE/IESNA Standard 90.1-2007, or achieves
equivalent or greater energy savings.
(C) A plan for the jurisdiction achieving compliance
with the building energy code or codes described in
subparagraphs (A) and (B) within 8 years of the date
of enactment of this Act in at least 90 percent of new
and renovated residential and commercial building
space. Such plan shall include active training and
enforcement programs and measurement of the rate of
compliance each year.
(3) The State will to the extent practicable prioritize the
grants toward funding energy efficiency and renewable energy
programs, including--
(A) the expansion of existing energy efficiency
programs approved by the State or the appropriate
regulatory authority, including energy efficiency
retrofits of buildings and industrial facilities, that
are funded--
(i) by the State; or
(ii) through rates under the oversight of the
applicable regulatory authority, to the extent
applicable;
(B) the expansion of existing programs, approved by
the State or the appropriate regulatory authority, to
support renewable energy projects and deployment
activities, including programs operated by entities
which have the authority and capability to manage and
distribute grants, loans, performance incentives, and
other forms of financial assistance; and
(C) cooperation and joint activities between States to
advance more efficient and effective use of this
funding to support the priorities described in this
paragraph.
(b) State Match- The State cost share requirement under the item
relating to `DEPARTMENT OF ENERGY; energy conservation' in title
II of the Department of the Interior and Related Agencies
Appropriations Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall
not apply to assistance provided under this section.
(c) Equipment and Materials for Energy Efficiency Measures- No
limitation on the percentage of funding that may be used for the
purchase and installation of equipment and materials for energy
efficiency measures under grants provided under part D of title
III of the Energy Policy and Conservation Act (42 U.S.C. 6321 et
seq.) shall apply to assistance provided under this section.
SEC. 7007. INAPPLICABILITY OF LIMITATION.
The limitations in section 399A(f)(2), (3), and (4) of the Energy
Policy and Conservation Act (42 U.S.C. 6371h-1(f)(2), (3), and
(4)) shall not apply to grants funded with appropriations provided
by this Act, except that such grant funds shall be available for
not more than an amount equal to 80 percent of the costs of the
project for which the grant is provided.
Passed the House of Representatives January 28, 2009.
Attest:
Clerk.
111th CONGRESS
1st Session
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H. R. 1
*
*
AN ACT
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Making supplemental appropriations for job preservation and creation,
infrastructure investment, energy efficiency and science, assistance to
the unemployed, and State and local fiscal stabilization, for the fiscal
year ending September 30, 2009, and for other purposes.
/END/