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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

*
H. R. 1

*

*
AN ACT

*

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/

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