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HR 1 EAS

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In the Senate of the United States,

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February 10, 2009.

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/ Resolved, /That the bill from the House of Representatives (H.R. 1)
entitled `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.',
do pass with the following

/AMENDMENT:/

Strike out all after the enacting clause and insert the following:


      /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--APPROPRIATIONS PROVISIONS/

            /TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG
            ADMINISTRATION, AND RELATED AGENCIES/

            /TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES/

            /TITLE III--DEPARTMENT OF DEFENSE/

            /TITLE IV--ENERGY AND WATER DEVELOPMENT/

            /TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT/

            /TITLE VI--DEPARTMENT OF HOMELAND SECURITY/

            /TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES/

            /TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN
            SERVICES, AND EDUCATION, AND RELATED AGENCIES/

            /TITLE IX--LEGISLATIVE BRANCH/

            /TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND
            RELATED AGENCIES/

            /TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS/

            /TITLE XII--TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT,
            AND RELATED AGENCIES/

            /TITLE XIII--HEALTH INFORMATION TECHNOLOGY/

            /TITLE XIV--STATE FISCAL STABILIZATION/

            /TITLE XV--RECOVERY ACCOUNTABILITY AND TRANSPARENCY BOARD
            AND RECOVERY INDEPENDENT ADVISORY PANEL/

            /TITLE XVI--GENERAL PROVISIONS--THIS ACT/


      /DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND
      OTHER PROVISIONS/

            /TITLE I--TAX PROVISIONS/

            /TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING
            FAMILIES/

            /TITLE III--HEALTH INSURANCE ASSISTANCE/

            /TITLE IV--HEALTH INFORMATION TECHNOLOGY/

            /TITLE V--STATE FISCAL RELIEF/


      /SEC. 3. 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./


        /DIVISION A--APPROPRIATIONS PROVISIONS/

      / That the following sums are appropriated, out of any money in
      the Treasury not otherwise appropriated, for the fiscal year
      ending September 30, 2009, and for other purposes, namely:/


      /TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG
      ADMINISTRATION, AND RELATED AGENCIES/


      /DEPARTMENT OF AGRICULTURE/


      /Office of the Secretary/


      /(including transfers of funds)/

      / For an additional amount for the `Office of the Secretary',
      $200,000,000, to remain available until September 30, 2010:
      /Provided,/ That the Secretary may transfer these funds to
      agencies of the Department, other than the Forest Service, for
      necessary replacement, modernization, or upgrades of laboratories
      or other facilities to improve workplace safety and mission-area
      efficiencies as deemed appropriate by the Secretary: /Provided
      further,/ that the Secretary shall provide to the Committees on
      Appropriations of the House and Senate a plan on the allocation of
      these funds no later than 60 days after the date of enactment of
      this Act./


      /office of inspector general/

      / For an additional amount for `Office of Inspector General',
      $5,000,000, to remain available until September 30, 2011, for
      oversight and audit of programs, grants, and activities funded
      under this title and an additional $17,500,000 for such purposes,
      to remain available until September 30, 2011./


      /Cooperative State Research, Education and Economic Service/


      /research and education activities/

      / For an additional amount for competitive grants authorized at 7
      U.S.C. 450(i)(b), $50,000,000, to remain available until September
      30, 2010./


      /Farm Service Agency/


      /agricultural credit insurance fund program account/

      / For an additional amount for gross obligations for the principal
      amount of direct and guaranteed farm ownership (7 U.S.C 1922 et
      seq.) and operating (7 U.S.C. 1941 et seq.) loans, to be available
      from funds in the Agricultural Credit Insurance Fund Program
      Account, as follows: farm ownership loans, $400,000,000 of which
      $100,000,000 shall be for unsubsidized guaranteed loans and
      $300,000,000 shall be for direct loans; and operating loans,
      $250,000,000 of which $50,000,000 shall be for unsubsidized
      guaranteed loans and $200,000,000 shall be for direct 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, to remain
      available until September 30, 2010, as follows: farm ownership
      loans, $17,530,000 of which $330,000 shall be for unsubsidized
      guaranteed loans and $17,200,000 shall be for direct loans; and
      operating loans, $24,900,000 of which $1,300,000 shall be for
      unsubsidized guaranteed loans and $23,600,000 shall be for direct
      loans./

      / Funds appropriated by this Act to the Agricultural Credit
      Insurance Fund Program Account for farm ownership, operating, and
      emergency direct loans and unsubsidized guaranteed loans may be
      transferred among these programs: /Provided,/ That the Committees
      on Appropriations of both Houses of Congress are notified at least
      15 days in advance of any transfer./


      /Natural Resources Conservation Service/


      /watershed and flood prevention operations/

      / For an additional amount for `Watershed and Flood Prevention
      Operations', $275,000,000, to remain available until September 30,
      2010./


      /watershed rehabilitation program/

      / For an additional amount for the `Watershed Rehabilitation
      Program', $65,000,000, to remain available until September 30, 2010./


      /rural development salaries and expenses/

      / For an additional amount for `Rural Development, Salaries and
      Expenses', $80,000,000, to remain available until September 30, 2010./


      /Rural Housing Service/


      /rural housing insurance program account/

      / For an additional amount for 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 Program Account, as follows: $1,000,000,000
      for section 502 direct loans; and $10,472,000,000 for section 502
      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, to remain
      available until September 30, 2010, as follows: $67,000,000 for
      section 502 direct loans; and $133,000,000 for section 502
      unsubsidized guaranteed loans./


      /rural community facilities program account/

      / For an additional amount for the cost of direct loans, loan
      guarantees, and grants for rural community facilities programs as
      authorized by section 306 and described in section 381E(d)(1) of
      the Consolidated Farm and Rural Development Act, $127,000,000, to
      remain available until September 30, 2010./


      /Rural Business--cooperative Service/


      /rural business program account/

      / For an additional amount for the cost of guaranteed loans and
      grants as authorized by sections 310B(a)(2)(A) and 310B(c) of the
      Consolidated Farm and Rural Development Act (7 U.S.C. 1932),
      $150,000,000, to remain available until September 30, 2010./


      /biorefinery assistance/

      / For the cost of loan guarantees and grants, as authorized by
      section 9003 of the Farm Security and Rural Investment Act of 2002
      (7 U.S.C. 8103), $200,000,000, to remain available until September
      30, 2010./


      /rural energy for america program/

      / For an additional amount for the cost of loan guarantees and
      grants, as authorized by section 9007 of the Farm Security and
      Rural Investment Act of 2002 (7 U.S.C. 8107), $50,000,000, to
      remain available until September 30, 2010: /Provided,/ That these
      funds may be used by tribes, local units of government, and
      schools in rural areas, as defined in section 343(a) of the
      Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a))./


      /Rural Utilities Service/


      /rural water and waste disposal program account/

      / For an additional amount for the cost of direct loans, loan
      guarantees, and grants for the rural water, waste water, waste
      disposal, and solid waste management programs authorized by
      sections 306, 306A, 306C, 306D, and 310B and described in sections
      306C(a)(2), 306D, and 381E(d)(2) of the Consolidated Farm and
      Rural Development Act, $1,375,000,000, to remain available until
      September 30, 2010./


      /distance learning, telemedicine, and broadband program account/

      / For an additional amount for direct loans and grants for
      distance learning and telemedicine services in rural areas, as
      authorized by 7 U.S.C. 950aaa, et seq., $100,000,000, to remain
      available until September 30, 2010./


      /Food and Nutrition Service/


      /child nutrition programs/

      / For additional amount for the Richard B. Russell National School
      Lunch Act (42 U.S.C. 1751 et. seq.), except section 21, and the
      Child Nutrition Act of 1966 (42 U.S.C. 1771 et. seq.), except
      sections 17 and 21, $100,000,000, to remain available until
      September 30, 2010, to carry out a grant program for National
      School Lunch Program equipment assistance: /Provided,/ That such
      funds shall be provided to States administering a school lunch
      program through a formula based on the ratio that the total number
      of lunches served in the Program during the second preceding
      fiscal year bears to the total number of such lunches served in
      all States in such second preceding fiscal year: /Provided
      further,/ That of such funds, the Secretary may approve the
      reserve by States of up to $20,000,000 for necessary enhancements
      to the State Distributing Agency's commodity ordering and
      management system to achieve compatibility with the Department's
      web-based supply chain management system: /Provided further,/ That
      of the funds remaining, the State shall provide competitive grants
      to school food authorities based upon the need for equipment
      assistance in participating schools with priority given to schools
      in which not less than 50 percent of the students are eligible for
      free or reduced price meals under the Richard B. Russell National
      School Lunch Act and priority given to schools purchasing
      equipment for the purpose of offering more healthful foods and
      meals, in accordance with standards established by the Secretary./


      /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), to remain available until September 30,
      2010, $500,000,000, of which $380,000,000 shall be placed in
      reserve to be allocated as the Secretary deems necessary,
      notwithstanding section 17(i) of such Act, to support
      participation should cost or participation exceed budget
      estimates, and of which $120,000,000 shall be for the purposes
      specified in section 17(h)(10)(B)(ii): /Provided,/ That up to one
      percent of the funding provided for the purposes specified in
      section 17(h)(10)(B)(ii) may be reserved by the Secretary for
      Federal administrative activities in support of those purposes./


      /commodity assistance program/

      / For an additional amount for the `Commodity Assistance Program',
      to remain available until September 30, 2010, $150,000,000, which
      the Secretary shall use to purchase a variety of commodities as
      authorized by the Commodity Credit Corporation or under section 32
      of the Act entitled `An Act to amend the Agricultural Adjustment
      Act, and for other purposes', approved August 24, 1935 (7 U.S.C.
      612c): /Provided,/ That the Secretary shall distribute the
      commodities to States for distribution in accordance with section
      214 of the Emergency Food Assistance Act of 1983 (Public Law 98-8;
      7 U.S.C. 612c note): /Provided further,/ That of the funds made
      available, the Secretary may use up to $50,000,000 for costs
      associated with the distribution of commodities./


      /GENERAL PROVISIONS--THIS TITLE/

      / Sec. 101. Funds appropriated by this Act and made available to
      the United States Department of Agriculture for broadband direct
      loans and loan guarantees, as authorized under title VI of the
      Rural Electrification Act of 1936 (7 U.S.C. 950bb) and for grants,
      shall be available for broadband infrastructure in any area of the
      United States notwithstanding title VI of the Rural
      Electrification Act of 1936: /Provided,/ That at least 75 percent
      of the area served by the projects receiving funds from such
      grants, loans, or loan guarantees is in a rural area without
      sufficient access to high speed broadband service to facilitate
      rural economic development, as determined by the Secretary:
      /Provided further,/ That priority for awarding funds made
      available under this paragraph shall be given to projects that
      provide service to the highest proportion of rural residents that
      do not have sufficient access to broadband service: /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
      activities that can commence promptly following approval:
      /Provided further,/ That the Department 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./

      / Sec. 102. Nutrition for Economic Recovery./

      / (a) Maximum Benefit Increases- /

            / (1) ECONOMIC RECOVERY 1-MONTH BEGINNING STIMULUS PAYMENT-
            For the first month that begins not less than 25 days after
            the date of enactment of this Act, the Secretary of
            Agriculture (referred to in this section as the `Secretary')
            shall increase the cost of the thrifty food plan for
            purposes of section 8(a) of the Food and Nutrition Act of
            2008 (7 U.S.C. 2017(a)) by 85 percent./

            / (2) REMAINDER OF FISCAL YEAR 2009- Beginning with the
            second month that begins not less than 25 days after the
            date of enactment of this Act, and for each subsequent month
            through the month ending September 30, 2009, the Secretary
            shall increase the cost of the thrifty food plan for
            purposes of section 8(a) of the Food and Nutrition Act of
            2008 (7 U.S.C. 2017(a)) by 12 percent./

            / (3) SUBSEQUENT INCREASE FOR FISCAL YEAR 2010- Beginning on
            October 1, 2009, and for each subsequent month through the
            month ending September 30, 2010, the Secretary shall
            increase the cost of the thrifty food plan for purposes of
            section 8(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
            2017(a)) by an amount equal to 12 percent, less the
            percentage by which the Secretary determines the thrifty
            food plan would otherwise be adjusted on October 1, 2009, as
            required under section 3(u) of that Act (7 U.S.C. 2012(u)),
            if the percentage is less than 12 percent./

            / (4) SUBSEQUENT INCREASE FOR FISCAL YEAR 2011- Beginning on
            October 1, 2010, and for each subsequent month through the
            month ending September 30, 2011, the Secretary shall
            increase the cost of the thrifty food plan for purposes of
            section 8(a) of the Food and Nutrition Act of 2008 (7 U.S.C.
            2017(a)) by an amount equal to 12 percent, less the sum of
            the percentages by which the Secretary determines the
            thrifty food plan would otherwise be adjusted on October 1,
            2009 and October 1, 2010, as required under section 3(u) of
            that Act (7 U.S.C. 2012(u)), if the sum of such percentages
            is less than 12 percent./

            / (5) TERMINATION OF EFFECTIVENESS- Effective beginning
            October 1, 2011, the authority provided by this subsection
            terminates and has no effect./

      / (b) Administration- 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 changes 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 section 16(c)(3)(A) of that Act;/

            / (4) disregard the additional amount of benefits that a
            household receives as a result of this section in
            determining the amount of overissuances under section 13 of
            the Food and Nutrition Act of 2008 (7 U.S.C. 2022) and the
            hours of participation in a program under section 6(d), 20,
            or 26 of that Act (7 U.S.C. 2015(d), 2029, 2035); and/

            / (5) set the tolerance level for excluding small errors for
            the purposes of section 16(c) of the Food and Nutrition Act
            of 2008 (7 U.S.C. 2025(c)) at $50 for the period that the
            benefit increase under subsection (a) is in effect./

      / (c) Administrative Expenses- /

            / (1) IN GENERAL- For the costs of State administrative
            expenses associated with carrying out this section and
            administering the supplemental nutrition assistance program
            established under the Food and Nutrition Act of 2008 (7
            U.S.C. 2011 et seq.) (referred to in this section as the
            `supplemental nutrition assistance program') during a period
            of rising program caseloads, and for the expenses of the
            Secretary under paragraph (6), the Secretary shall make
            available $150,000,000 for each of fiscal years 2009 and
            2010, to remain available through September 30, 2010./

            / (2) TIMING FOR FISCAL YEAR 2009- Not later than 60 days
            after the date of enactment of this Act, the Secretary shall
            make available to States amounts for fiscal year 2009 under
            paragraph (1)./

            / (3) ALLOCATION OF FUNDS- Except as provided in paragraph
            (6), funds described in paragraph (1) shall be made
            available to States that meet the requirements of paragraph
            (5) as grants to State agencies for each fiscal year as
            follows:/

                  / (A) 75 percent of the amounts available for each
                  fiscal year shall be allocated to States based on the
                  share of each State of households that participate in
                  the supplemental nutrition assistance program as
                  reported to the Department of Agriculture for the most
                  recent 12-month period for which data are available,
                  adjusted by the Secretary (in the discretion of the
                  Secretary) for participation in disaster programs
                  under section 5(h) of the Food and Nutrition Act of
                  2008 (7 U.S.C. 2014(h)); and/

                  / (B) 25 percent of the amounts available for each
                  fiscal year shall be allocated to States based on the
                  increase in the number of households that participate
                  in the supplemental nutrition assistance program as
                  reported to the Department of Agriculture over the
                  most recent 12-month period for which data are
                  available, adjusted by the Secretary (in the
                  discretion of the Secretary) for participation in
                  disaster programs under section 5(h) of the Food and
                  Nutrition Act of 2008 (7 U.S.C. 2014(h))./

            / (4) REDISTRIBUTION- The Secretary shall determine an
            appropriate procedure for redistribution of amounts
            allocated to States that would otherwise be provided
            allocations under paragraph (3) for a fiscal year but that
            do not meet the requirements of paragraph (5)./

            / (5) MAINTENANCE OF EFFORT- /

                  / (A) DEFINITION OF SPECIFIED STATE ADMINISTRATIVE
                  COSTS- In this paragraph:/

                        / (i) IN GENERAL- The term `specified State
                        administrative costs' includes all State
                        administrative costs under the supplemental
                        nutrition assistance program./

                        / (ii) EXCLUSIONS- The term `specified State
                        administrative costs' does not include--/

                              / (I) the costs of employment and training
                              programs under section 6(d), 20, or 26 of
                              the Food and Nutrition Act of 2008 (7
                              U.S.C. 2015(d), 2029, 2035);/

                              / (II) the costs of nutrition education
                              under section 11(f) of that Act (7 U.S.C.
                              2020(f)); and/

                              / (III) any other costs the Secretary
                              determines should be excluded./

                  / (B) REQUIREMENT- The Secretary shall make funds
                  under this subsection available only to States that,
                  as determined by the Secretary, maintain State
                  expenditures on specified State administrative costs./

            / (6) MONITORING AND EVALUATION- Of the amounts made
            available under paragraph (1), the Secretary may retain up
            to $5,000,000 for the costs incurred by the Secretary in
            monitoring the integrity and evaluating the effects of the
            payments made under this section./

      / (d) Food Distribution Program on Indian Reservations- For the
      costs of administrative expenses associated with the food
      distribution program on Indian reservations established under
      section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C.
      2013(b)), the Secretary shall make available $5,000,000, to remain
      available until September 30, 2010./

      / (e) Consolidated Block Grants for Puerto Rico and American Samoa- /

            / (1) FISCAL YEAR 2009- /

                  / (A) IN GENERAL- For fiscal year 2009, the Secretary
                  shall increase by 12 percent the amount available for
                  nutrition assistance for eligible households under the
                  consolidated block grants for the Commonwealth of
                  Puerto Rico and American Samoa under section 19 of the
                  Food and Nutrition Act of 2008 (7 U.S.C. 2028)./

                  / (B) AVAILABILITY OF FUNDS- Funds made available
                  under subparagraph (A) shall remain available through
                  September 30, 2010./

            / (2) FISCAL YEAR 2010- For fiscal year 2010, the Secretary
            shall increase the amount available for nutrition assistance
            for eligible households under the consolidated block grants
            for the Commonwealth of Puerto Rico and American Samoa under
            section 19 of the Food and Nutrition Act of 2008 (7 U.S.C.
            2028) by 12 percent, less the percentage by which the
            Secretary determines the consolidated block grants would
            otherwise be adjusted on October 1, 2009, as required by
            section 19(a)(2)(A)(ii) of that Act (7 U.S.C.
            2028(a)(2)(A)(ii)), if the percentage is less than 12 percent./

            / (3) FISCAL YEAR 2011- For fiscal year 2011, the Secretary
            shall increase the amount available for nutrition assistance
            for eligible households under the consolidated block grants
            for the Commonwealth of Puerto Rico and American Samoa under
            section 19 of the Food and Nutrition Act of 2008 (7 U.S.C.
            2028) by 12 percent, less the sum of the percentages by
            which the Secretary determines the consolidated block grants
            would otherwise be adjusted on October 1, 2009, and October
            1, 2010, as required by section 19(a)(2)(A)(ii) of that Act
            (7 U.S.C. 2028(a)(2)(A)(ii)), if the sum of the percentages
            is less than 12 percent./

      / (f) Treatment of Jobless Workers- /

            / (1) REMAINDER OF FISCAL YEAR 2009 THROUGH FISCAL YEAR
            2011- 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, 2011,
            eligibility for supplemental nutrition assistance program
            benefits shall not be limited under section 6(o)(2) of the
            Food and Nutrition Act of 2008 unless an individual does not
            comply with the requirements of a program offered by the
            State agency that meets the standards of subparagraphs (B)
            or (C) of that paragraph./

            / (2) FISCAL YEAR 2012 AND THEREAFTER- Beginning on October
            1, 2011, for the purposes of section 6(o) of the Food and
            Nutrition Act of 2008 (7 U.S.C. 2015(o)), a State agency
            shall disregard any period during which an individual
            received benefits under the supplemental nutrition
            assistance program prior to October 1, 2011./

      / (g) Funding- There are appropriated to the Secretary out of
      funds of the Treasury not otherwise appropriated such sums as are
      necessary to carry out this section./

      / Sec. 103. Agricultural Disaster Assistance Transition. (a)
      Federal Crop Insurance Act- Section 531(g) of the Federal Crop
      Insurance Act (7 U.S.C. 1531(g)) is amended by adding at the end
      the following:/

            / `(7) 2008 TRANSITION ASSISTANCE- /

                  / `(A) IN GENERAL- Eligible producers on a farm
                  described in subparagraph (A) of paragraph (4) that
                  failed to timely pay the appropriate fee described in
                  that subparagraph shall be eligible for assistance
                  under this section in accordance with subparagraph (B)
                  if the eligible producers on the farm--/

                        / `(i) pay the appropriate fee described in
                        paragraph (4)(A) not later than 90 days after
                        the date of enactment of this paragraph; and/

                        / `(ii)(I) in the case of each insurable
                        commodity of the eligible producers on the farm,
                        excluding grazing land, agree to obtain a policy
                        or plan of insurance under subtitle A (excluding
                        a crop insurance pilot program under that
                        subtitle) for the next insurance year for which
                        crop insurance is available to the eligible
                        producers on the farm at a level of coverage
                        equal to 70 percent or more of the recorded or
                        appraised average yield indemnified at 100
                        percent of the expected market price, or an
                        equivalent coverage; and/

                        / `(II) in the case of each noninsurable
                        commodity of the eligible producers on the farm,
                        agree to file the required paperwork, and pay
                        the administrative fee by the applicable State
                        filing deadline, for the noninsured crop
                        assistance program for the 2009 crop year./

                  / `(B) AMOUNT OF ASSISTANCE- Eligible producers on a
                  farm that meet the requirements of subparagraph (A)
                  shall be eligible to receive assistance under this
                  section as if the eligible producers on the farm--/

                        / `(i) in the case of each insurable commodity
                        of the eligible producers on the farm, had
                        obtained a policy or plan of insurance for the
                        2008 crop year at a level of coverage not to
                        exceed 70 percent or more of the recorded or
                        appraised average yield indemnified at 100
                        percent of the expected market price, or an
                        equivalent coverage; and/

                        / `(ii) in the case of each noninsurable
                        commodity of the eligible producers on the farm,
                        had filed the required paperwork, and paid the
                        administrative fee by the applicable State
                        filing deadline, for the noninsured crop
                        assistance program for the 2008 crop year,
                        except that in determining yield under that
                        program, the Secretary shall use a percentage
                        that is 70 percent./

                  / `(C) EQUITABLE RELIEF- Except as provided in
                  subparagraph (D), eligible producers on a farm that
                  met the requirements of paragraph (1) before the
                  deadline described in paragraph (4)(A) and received,
                  or are eligible to receive, a disaster assistance
                  payment under this section for a production loss
                  during the 2008 crop year shall be eligible to receive
                  an additional amount equal to the greater of--/

                        / `(i) the amount that would have been
                        calculated under subparagraph (B) if the
                        eligible producers on the farm had paid the
                        appropriate fee under that subparagraph; or/

                        / `(ii) the amount that would have been
                        calculated under subparagraph (A) of subsection
                        (b)(3) if--/

                              / `(I) in clause (i) of that subparagraph,
                              `120 percent' is substituted for `115
                              percent'; and/

                              / `(II) in clause (ii) of that
                              subparagraph, `125' is substituted for
                              `120 percent'./

                  / `(D) LIMITATION- For amounts made available under
                  this paragraph, the Secretary may make such
                  adjustments as are necessary to ensure that no
                  producer receives a payment under this paragraph for
                  an amount in excess of the assistance received by a
                  similarly situated producer that had purchased the
                  same or higher level of crop insurance prior to the
                  date of enactment of this paragraph./

                  / `(E) AUTHORITY OF THE SECRETARY- The Secretary may
                  provide such additional assistance as the Secretary
                  considers appropriate to provide equitable treatment
                  for eligible producers on a farm that suffered
                  production losses in the 2008 crop year that result in
                  multiyear production losses, as determined by the
                  Secretary./

                  / `(F) LACK OF ACCESS- Notwithstanding any other
                  provision of this section, the Secretary may provide
                  assistance under this section to eligible producers on
                  a farm that--/

                        / `(i) suffered a production loss due to a
                        natural cause during the 2008 crop year; and/

                        / `(ii) as determined by the Secretary--/

                              / `(I)(aa) except as provided in item
                              (bb), lack access to a policy or plan of
                              insurance under subtitle A; or/

                              / `(bb) do not qualify for a written
                              agreement because 1 or more farming
                              practices, which the Secretary has
                              determined are good farming practices, of
                              the eligible producers on the farm differ
                              significantly from the farming practices
                              used by producers of the same crop in
                              other regions of the United States; and/

                              / `(II) are not eligible for the
                              noninsured crop disaster assistance
                              program established by section 196 of the
                              Federal Agriculture Improvement and Reform
                              Act of 1996 (7 U.S.C. 7333).'./

      / (b) Trade Act of 1974- Section 901(g) of the Trade Act of 1974
      (19 U.S.C. 2497(g)) is amended by adding at the end the following:/

            / `(7) 2008 TRANSITION ASSISTANCE- /

                  / `(A) IN GENERAL- Eligible producers on a farm
                  described in subparagraph (A) of paragraph (4) that
                  failed to timely pay the appropriate fee described in
                  that subparagraph shall be eligible for assistance
                  under this section in accordance with subparagraph (B)
                  if the eligible producers on the farm--/

                        / `(i) pay the appropriate fee described in
                        paragraph (4)(A) not later than 90 days after
                        the date of enactment of this paragraph; and/

                        / `(ii)(I) in the case of each insurable
                        commodity of the eligible producers on the farm,
                        excluding grazing land, agree to obtain a policy
                        or plan of insurance under the Federal Crop
                        Insurance Act (7 U.S.C. 1501 et seq.) (excluding
                        a crop insurance pilot program under that Act)
                        for the next insurance year for which crop
                        insurance is available to the eligible producers
                        on the farm at a level of coverage equal to 70
                        percent or more of the recorded or appraised
                        average yield indemnified at 100 percent of the
                        expected market price, or an equivalent
                        coverage; and/

                        / `(II) in the case of each noninsurable
                        commodity of the eligible producers on the farm,
                        agree to file the required paperwork, and pay
                        the administrative fee by the applicable State
                        filing deadline, for the noninsured crop
                        assistance program for the 2009 crop year./

                  / `(B) AMOUNT OF ASSISTANCE- Eligible producers on a
                  farm that meet the requirements of subparagraph (A)
                  shall be eligible to receive assistance under this
                  section as if the eligible producers on the farm--/

                        / `(i) in the case of each insurable commodity
                        of the eligible producers on the farm, had
                        obtained a policy or plan of insurance for the
                        2008 crop year at a level of coverage not to
                        exceed 70 percent or more of the recorded or
                        appraised average yield indemnified at 100
                        percent of the expected market price, or an
                        equivalent coverage; and/

                        / `(ii) in the case of each noninsurable
                        commodity of the eligible producers on the farm,
                        had filed the required paperwork, and paid the
                        administrative fee by the applicable State
                        filing deadline, for the noninsured crop
                        assistance program for the 2008 crop year,
                        except that in determining yield under that
                        program, the Secretary shall use a percentage
                        that is 70 percent./

                  / `(C) EQUITABLE RELIEF- Except as provided in
                  subparagraph (D), eligible producers on a farm that
                  met the requirements of paragraph (1) before the
                  deadline described in paragraph (4)(A) and received,
                  or are eligible to receive, a disaster assistance
                  payment under this section for a production loss
                  during the 2008 crop year shall be eligible to receive
                  an additional amount equal to the greater of--/

                        / `(i) the amount that would have been
                        calculated under subparagraph (B) if the
                        eligible producers on the farm had paid the
                        appropriate fee under that subparagraph; or/

                        / `(ii) the amount that would have been
                        calculated under subparagraph (A) of subsection
                        (b)(3) if--/

                              / `(I) in clause (i) of that subparagraph,
                              `120 percent' is substituted for `115
                              percent'; and/

                              / `(II) in clause (ii) of that
                              subparagraph, `125' is substituted for
                              `120 percent'./

                  / `(D) LIMITATION- For amounts made available under
                  this paragraph, the Secretary may make such
                  adjustments as are necessary to ensure that no
                  producer receives a payment under this paragraph for
                  an amount in excess of the assistance received by a
                  similarly situated producer that had purchased the
                  same or higher level of crop insurance prior to the
                  date of enactment of this paragraph./

                  / `(E) AUTHORITY OF THE SECRETARY- The Secretary may
                  provide such additional assistance as the Secretary
                  considers appropriate to provide equitable treatment
                  for eligible producers on a farm that suffered
                  production losses in the 2008 crop year that result in
                  multiyear production losses, as determined by the
                  Secretary./

                  / `(F) LACK OF ACCESS- Notwithstanding any other
                  provision of this section, the Secretary may provide
                  assistance under this section to eligible producers on
                  a farm that--/

                        / `(i) suffered a production loss due to a
                        natural cause during the 2008 crop year; and/

                        / `(ii) as determined by the Secretary--/

                              / `(I)(aa) except as provided in item
                              (bb), lack access to a policy or plan of
                              insurance under subtitle A; or/

                              / `(bb) do not qualify for a written
                              agreement because 1 or more farming
                              practices, which the Secretary has
                              determined are good farming practices, of
                              the eligible producers on the farm differ
                              significantly from the farming practices
                              used by producers of the same crop in
                              other regions of the United States; and/

                              / `(II) are not eligible for the
                              noninsured crop disaster assistance
                              program established by section 196 of the
                              Federal Agriculture Improvement and Reform
                              Act of 1996 (7 U.S.C. 7333).'./

      / (c) Emergency Loans- /

            / (1) IN GENERAL- For the principal amount of direct
            emergency loans under section 321 of the Consolidated Farm
            and Rural Development Act (7 U.S.C. 1961), $200,000,000./

            / (2) DIRECT EMERGENCY LOANS- For the cost of direct
            emergency loans, including the cost of modifying loans, as
            defined in section 502 of the Congressional Budget Act of
            1974 (2 U.S.C. 661a), $28,440,000, to remain available until
            September 30, 2010./

      / (d) 2008 Aquaculture Assistance- /

            / (1) DEFINITIONS- In this subsection:/

                  / (A) ELIGIBLE AQUACULTURE PRODUCER- The term
                  `eligible aquaculture producer' means an aquaculture
                  producer that during the 2008 calendar year, as
                  determined by the Secretary--/

                        / (i) produced an aquaculture species for which
                        feed costs represented a substantial percentage
                        of the input costs of the aquaculture operation;
                        and/

                        / (ii) experienced a substantial price increase
                        of feed costs above the previous 5-year average./

                  / (B) SECRETARY- The term `Secretary' means the
                  Secretary of Agriculture./

            / (2) GRANT PROGRAM- /

                  / (A) IN GENERAL- Of the funds of the Commodity Credit
                  Corporation, the Secretary shall use not more than
                  $50,000,000, to remain available until September 30,
                  2010, to carry out a program of grants to States to
                  assist eligible aquaculture producers for losses
                  associated with high feed input costs during the 2008
                  calendar year./

                  / (B) NOTIFICATION- Not later than 60 days after the
                  date of enactment of this Act, the Secretary shall
                  notify the State department of agriculture (or similar
                  entity) in each State of the availability of funds to
                  assist eligible aquaculture producers, including such
                  terms as determined by the Secretary to be necessary
                  for the equitable treatment of eligible aquaculture
                  producers./

                  / (C) PROVISION OF GRANTS- /

                        / (i) IN GENERAL- The Secretary shall make
                        grants to States under this subsection on a pro
                        rata basis based on the amount of aquaculture
                        feed used in each State during the 2007 calendar
                        year, as determined by the Secretary./

                        / (ii) TIMING- Not later than 120 days after the
                        date of enactment of this Act, the Secretary
                        shall make grants to States to provide
                        assistance under this subsection./

                  / (D) REQUIREMENTS- The Secretary shall make grants
                  under this subsection only to States that demonstrate
                  to the satisfaction of the Secretary that the State
                  will--/

                        / (i) use grant funds to assist eligible
                        aquaculture producers;/

                        / (ii) provide assistance to eligible
                        aquaculture producers not later than 60 days
                        after the date on which the State receives grant
                        funds; and/

                        / (iii) not later than 30 days after the date on
                        which the State provides assistance to eligible
                        aquaculture producers, submit to the Secretary a
                        report that describes--/

                              / (I) the manner in which the State
                              provided assistance;/

                              / (II) the amounts of assistance provided
                              per species of aquaculture; and/

                              / (III) the process by which the State
                              determined the levels of assistance to
                              eligible aquaculture producers./

            / (3) REDUCTION IN PAYMENTS- An eligible aquaculture
            producer that receives assistance under this subsection
            shall not be eligible to receive any other assistance under
            the supplemental agricultural disaster assistance program
            established under section 531 of the Federal Crop Insurance
            Act (7 U.S.C. 1531) and section 901 of the Trade Act of 1974
            (19 U.S.C. 2497) for any losses in 2008 relating to the same
            species of aquaculture./

            / (4) REPORT TO CONGRESS- Not later than 180 days after the
            date of enactment of this Act, the Secretary shall submit to
            the appropriate committees of Congress a report that--/

                  / (A) describes in detail the manner in which this
                  subsection has been carried out; and/

                  / (B) includes the information reported to the
                  Secretary under paragraph (2)(D)(iii)./

      / (e) Administration- There is hereby appropriated $54,000,000 to
      carry out this section./

      / Sec. 104. (a) Hereafter, in this section, the term
      `nonambulatory disabled cattle' means cattle, other than cattle
      that are less than 5 months old or weigh less than 500 pounds,
      subject to inspection under section 3(b) of the Federal Meat
      Inspection Act (21 U.S.C. 603(b)) that cannot rise from a
      recumbent position or walk, including cattle with a broken
      appendage, severed tendon or ligament, nerve paralysis, fractured
      vertebral column, or a metabolic condition./

      / (b) Hereafter, none of the funds made available under this or
      any other Act may be used to pay the salaries or expenses of any
      personnel of the Food Safety and Inspection Service to pass
      through inspection any nonambulatory disabled cattle for use as
      human food, regardless of the reason for the nonambulatory status
      of the cattle or the time at which the cattle became nonambulatory./

      / Sec. 105. State and Local Governments. Section 1001(f)(6)(A) of
      the Food Security Act of 1985 (7 U.S.C. 1308(f)(6)(A)) is amended
      by inserting `(other than the conservation reserve program
      established under subchapter B of chapter 1 of subtitle D of title
      XII of this Act)' before the period at the end./

      / Sec. 106. Except for title I of the Food, Conservation, and
      Energy Act of 2008 (Public Law 110-246), Commodity Credit
      Corporation funds provided in that Act shall be available for
      administrative expenses, including technical assistance, without
      regard to the limitation in 15 U.S.C. 714i./


      /TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES/


      /DEPARTMENT OF COMMERCE/


      /Bureau of Industry and Security/


      /operations and administration/

      / For an additional amount for `Operations and Administration',
      $20,000,000, to remain available until September 30, 2010./


      /Economic Development Administration/


      /economic development assistance programs/

      / For an additional amount for `Economic Development Assistance
      Programs', $150,000,000, to remain available until September 30,
      2010: /Provided,/ That $50,000,000 shall be for economic
      adjustment assistance as authorized by section 209 of the Public
      Works and Economic Development Act of 1965, as amended (42 U.S.C.
      3149): /Provided further,/ That in allocating the funds provided
      in the previous proviso, the Secretary of Commerce shall give
      priority consideration to areas of the Nation that have
      experienced sudden and severe economic dislocation and job loss
      due to corporate restructuring./


      /Bureau of the Census/


      /periodic censuses and programs/

      / For an additional amount for `Periodic Censuses and Programs',
      $1,000,000,000, to remain available until September 30, 2010./


      /National Telecommunications and Information Administration/


      /broadband technology opportunities program/

      / For an amount for `Broadband Technology Opportunities Program',
      $7,000,000,000, to remain available until September 30, 2010:
      /Provided,/ That of the funds provided under this heading,
      $6,650,000,000 shall be expended pursuant to section 201 of this
      Act, of which: not less than $200,000,000 shall be available for
      competitive grants for expanding public computer center capacity,
      including at community colleges and public libraries; not less
      than $250,000,000 shall be available for competitive grants for
      innovative programs to encourage sustainable adoption of broadband
      service; and $10,000,000 shall be transferred to `Department of
      Commerce, Office of Inspector General' for the purposes of audits
      and oversight of funds provided under this heading and such funds
      shall remain available until expended: /Provided further,/ That 50
      percent of the funds provided in the previous proviso shall be
      used to support projects in rural communities, which in part may
      be transferred to the Department of Agriculture for administration
      through the Rural Utilities Service if deemed necessary and
      appropriate by the Secretary of Commerce, in consultation with the
      Secretary of Agriculture, and only if the Committees on
      Appropriations of the House and the Senate are notified not less
      than 15 days in advance of the transfer of such funds: /Provided
      further,/ That of the funds provided under this heading, up to
      $350,000,000 may be expended pursuant to Public Law 110-385 (47
      U.S.C. 1301 note) and for the purposes of developing and
      maintaining a broadband inventory map pursuant to section 201 of
      this Act: /Provided further,/ That of the funds provided under
      this heading, amounts deemed necessary and appropriate by the
      Secretary of Commerce, in consultation with the Federal
      Communications Commission (FCC), may be transferred to the FCC for
      the purposes of developing a national broadband plan or for
      carrying out any other FCC responsibilities pursuant to section
      201 of this Act, and only if the Committees on Appropriations of
      the House and the Senate are notified not less than 15 days in
      advance of the transfer of such funds: /Provided further,/ That
      not more than 3 percent of funds provided under this heading may
      be used for administrative costs, and this limitation shall apply
      to funds which may be transferred to the Department of Agriculture
      and the FCC./


      /digital-to-analog converter box program/

      / For an amount for `Digital-to-Analog Converter Box Program',
      $650,000,000, for additional coupons and related activities under
      the program implemented under section 3005 of the Digital
      Television Transition and Public Safety Act of 2005, to remain
      available until September 30, 2010: /Provided,/ That of the
      amounts provided under this heading, $90,000,000 may be for
      education and outreach, including grants to organizations for
      programs to educate vulnerable populations, including senior
      citizens, minority communities, people with disabilities,
      low-income individuals, and people living in rural areas, about
      the transition and to provide one-on-one assistance to vulnerable
      populations, including help with converter box installation:
      /Provided further,/ That the amounts provided in the previous
      proviso may be transferred to the Federal Communications
      Commission (Commission) if deemed necessary and appropriate by the
      Secretary of Commerce in consultation with the Commission, and
      only if the Committees on Appropriations of the House and the
      Senate are notified not less than 5 days in advance of transfer of
      such funds: /Provided further,/ That $2,000,000 of funds provided
      under this heading shall be transferred to `Department of
      Commerce, Office of Inspector General' for audits and oversight of
      funds provided under this heading./


      /National Institute of Standards and Technology/


      /scientific and technical research and services/

      / For an additional amount for `Scientific and Technical Research
      and Services', $168,000,000, to remain available until September
      30, 2010./


      /construction of research facilities/

      / For an additional amount for `Construction of Research
      Facilities', $307,000,000, to remain available until September 30,
      2010./


      /National Oceanic and Atmospheric Administration/


      /operations, research, and facilities/

      / For an additional amount for `Operations, Research, and
      Facilities', $377,000,000, to remain available until September 30,
      2010./


      /procurement, acquisition and construction/

      / For an additional amount for `Procurement, Acquisition and
      Construction', $645,000,000, to remain available until September
      30, 2010./


      /Office of Inspector General/

      / For an additional amount for `Office of Inspector General',
      $6,000,000, to remain available until September 30, 2012./


      /DEPARTMENT OF JUSTICE/


      /General Administration/


      /tactical law enforcement wireless communications/

      / For an additional amount for `Tactical Law Enforcement Wireless
      Communications', $100,000,000 for the costs of developing and
      implementing a nationwide Integrated Wireless network supporting
      Federal law enforcement, to remain available until September 30,
      2010./


      /Detention Trustee/

      / For an additional amount for `Detention Trustee', $100,000,000,
      to remain available until September 30, 2010./


      /Office of Inspector General/

      / For an additional amount for `Office of Inspector General',
      $2,000,000, to remain available until September 30, 2011./


      /United States Marshals Service/


      /salaries and expenses/

      / For an additional amount for `Salaries and Expenses',
      $50,000,000, to remain available until September 30, 2010./


      /construction/

      / For an additional amount for `Construction', $100,000,000, to
      remain available until September 30, 2010./


      /Federal Bureau of Investigation/


      /salaries and expenses/

      / For an additional amount for `Salaries and Expenses',
      $75,000,000, to remain available until September 30, 2010./


      /construction/

      / For an additional amount for `Construction', $300,000,000, to
      remain available until September 30, 2010./


      /Federal Prison System/


      /buildings and facilities/

      / For an additional amount for `Federal Prison System, Buildings
      and Facilities', $800,000,000, to remain available until September
      30, 2010./


      /State and Local Law Enforcement Activities/


      /Office on Violence Against Women/


      /violence against women prevention and prosecution programs/

      / For an additional amount for `Violence Against Women Prevention
      and Prosecution Programs', $300,000,000 for grants to combat
      violence against women, as authorized by part T of the Omnibus
      Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3711 et
      seq.): /Provided,/ That, $50,000,000 shall be transitional housing
      assistance grants for victims of domestic violence, stalking or
      sexual assault as authorized by section 40299 of the Violent Crime
      Control and Law Enforcement Act of 1994 (Public Law 103-322)./


      /Office of Justice Programs/


      /state and local law enforcement assistance/

      / For an additional amount for `State and Local Law Enforcement
      Assistance', $1,200,000,000 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 Street Act of 1968
      (`1968 Act'), (except that section 1001(c), and the special rules
      for Puerto Rico under section 505(g), of the 1968 Act, shall not
      apply for purposes of this Act), to remain available until
      September 30, 2010./

      / For an additional amount for `State and Local Law Enforcement
      Assistance', $300,000,000 for competitive grants to improve the
      functioning of the criminal justice system, to assist victims of
      crime (other than compensation), and youth mentoring grants, to
      remain available until September 30, 2010./

      / For an additional amount for `State and Local Law Enforcement
      Assistance', $90,000,000, to remain available until September 30,
      2010, for competitive grants to provide assistance and equipment
      to local law enforcement along the Southern border and in
      High-Intensity Drug Trafficking Areas to combat criminal narcotics
      activity stemming from the Southern border, of which $10,000,000
      shall be transferred to `Bureau of Alcohol, Tobacco, Firearms and
      Explosives, Salaries and Expenses' for the ATF Project Gunrunner./

      / For an additional amount for `State and Local Law Enforcement
      Assistance', $300,000,000, to remain available until September 30,
      2010, for assistance to Indian tribes, notwithstanding Public Law
      108-199, division B, title I, section 112(a)(1) (118 Stat. 62), of
      which--/

            / (1) $250,000,000 shall be available for grants under
            section 20109 of subtitle A of title II of the Violent Crime
            Control and Law Enforcement Act of 1994 (Public Law 103-322);/

            / (2) $25,000,000 shall be available for the Tribal Courts
            Initiative; and/

            / (3) $25,000,000 shall be available for tribal alcohol and
            substance abuse drug reduction assistance grants./

      /For an additional amount for `State and Local Law Enforcement
      Assistance', $100,000,000, to remain available until September 30,
      2010, to be distributed by the Office for Victims of Crime in
      accordance with section 1402(d)(4) of the Victims of Crime Act of
      1984 (Public Law 98-473)./

      / For an additional amount for `State and Local Law Enforcement
      Assistance', $150,000,000, to remain available until September 30,
      2010, for assistance to law enforcement in rural areas, to prevent
      and combat crime, especially drug-related crime./

      / For an additional amount for `State and Local Law Enforcement
      Assistance', $50,000,000, to remain available until September 30,
      2010, for Internet Crimes Against Children (ICAC) initiatives./


      /Community Oriented Policing Services/

      / For an additional amount for `Community Oriented Policing
      Services', for grants under section 1701 of title I of the 1968
      Omnibus Crime Control and Safe Streets Act (42 U.S.C. 3796dd) for
      hiring and rehiring of additional career law enforcement officers
      under part Q of such title, and civilian public safety personnel,
      notwithstanding subsection (i) of such section and notwithstanding
      42 U.S.C. 3796dd-3(c), $1,000,000,000, to remain available until
      September 30, 2010./


      /Salaries and Expenses/

      / For an additional amount, not elsewhere specified in this title,
      for management and administration and oversight of programs within
      the Office on Violence Against Women, the Office of Justice
      Programs, and the Community Oriented Policing Services Office,
      $10,000,000, to remain available until September 30, 2010./


      /SCIENCE/


      /National Aeronautics and Space Administration/


      /science/

      / For an additional amount for `Science', $450,000,000, to remain
      available until September 30, 2010./


      /aeronautics/

      / For an additional amount for `Aeronautics', $200,000,000, to
      remain available until September 30, 2010./


      /exploration/

      / For an additional amount for `Exploration', $450,000,000, to
      remain available until September 30, 2010./


      /cross agency support/

      / For an additional amount for `Cross Agency Support',
      $200,000,000, to remain available until September 30, 2010./


      /office of inspector general/

      / For an additional amount for `Office of Inspector General',
      $2,000,000, to remain available until September 30, 2011./


      /National Science Foundation/


      /research and related activities/

      / For an additional amount for `Research and Related Activities',
      $1,000,000,000, to remain available until September 30, 2010./


      /major research equipment and facilities construction/

      / For an additional amount for `Major Research Equipment and
      Facilities Construction', $150,000,000, to remain available until
      September 30, 2010./


      /education and human resources/

      / For an additional amount for `Education and Human Resources',
      $50,000,000, to remain available until September 30, 2010./


      /office of inspector general/

      / For an additional amount for `Office of Inspector General',
      $2,000,000, to remain available until September 30, 2011./


      /GENERAL PROVISIONS--THIS TITLE/

      / Sec. 201. The Assistant Secretary of Commerce for Communications
      and Information (Assistant Secretary), in consultation with the
      Federal Communications Commission (Commission) (and, with respect
      to rural areas, the Secretary of Agriculture), shall establish a
      national broadband service development and expansion program in
      conjunction with the technology opportunities program, which shall
      be referred to the Broadband Technology Opportunities Program. The
      Assistant Secretary shall ensure that the program complements and
      enhances and does not conflict with other Federal broadband
      initiatives and programs./

            / (1) The purposes of the program are to--/

                  / (A) provide access to broadband service to citizens
                  residing in unserved areas of the United States;/

                  / (B) provide improved access to broadband service to
                  citizens residing in underserved areas of the United
                  States;/

                  / (C) provide broadband education, awareness,
                  training, access, equipment, and support to--/

                        / (i) schools, libraries, medical and healthcare
                        providers, community colleges and other
                        institutions of higher education, and other
                        community support organizations and entities to
                        facilitate greater use of broadband service by
                        or through these organizations;/

                        / (ii) organizations and agencies that provide
                        outreach, access, equipment, and support
                        services to facilitate greater use of broadband
                        service by low-income, unemployed, aged, and
                        otherwise vulnerable populations; and/

                        / (iii) job-creating strategic facilities
                        located within a State-designated economic zone,
                        Economic Development District designated by the
                        Department of Commerce, Renewal Community or
                        Empowerment Zone designated by the Department of
                        Housing and Urban Development, or Enterprise
                        Community designated by the Department of
                        Agriculture./

                  / (D) improve access to, and use of, broadband service
                  by public safety agencies; and/

                  / (E) stimulate the demand for broadband, economic
                  growth, and job creation./

            / (2) The Assistant Secretary may consult with the chief
            executive officer of any State with respect to--/

                  / (A) the identification of areas described in
                  subsection (1)(A) or (B) located in that State; and/

                  / (B) the allocation of grant funds within that State
                  for projects in or affecting the State./

            / (3) The Assistant Secretary shall--/

                  / (A) establish and implement the grant program as
                  expeditiously as practicable;/

                  / (B) ensure that all awards are made before the end
                  of fiscal year 2010;/

                  / (C) seek such assurances as may be necessary or
                  appropriate from grantees under the program that they
                  will substantially complete projects supported by the
                  program in accordance with project timelines, not to
                  exceed 2 years following an award; and/

                  / (D) report on the status of the program to the
                  Committees on Appropriations of the House and the
                  Senate, the Committee on Energy and Commerce of the
                  House, and the Committee on Commerce, Science, and
                  Transportation of the Senate, every 90 days./

            / (4) To be eligible for a grant under the program an
            applicant shall--/

                  / (A) be a State or political subdivision thereof, a
                  nonprofit foundation, corporation, institution or
                  association, Indian tribe, Native Hawaiian
                  organization, or other non-governmental entity in
                  partnership with a State or political subdivision
                  thereof, Indian tribe, or Native Hawaiian organization
                  if the Assistant Secretary determines the partnership
                  consistent with the purposes this section;/

                  / (B) submit an application, at such time, in such
                  form, and containing such information as the Assistant
                  Secretary may require;/

                  / (C) provide a detailed explanation of how any amount
                  received under the program will be used to carry out
                  the purposes of this section in an efficient and
                  expeditious manner, including a demonstration that the
                  project would not have been implemented during the
                  grant period without Federal grant assistance;/

                  / (D) demonstrate, to the satisfaction of the
                  Assistant Secretary, that it is capable of carrying
                  out the project or function to which the application
                  relates in a competent manner in compliance with all
                  applicable Federal, State, and local laws;/

                  / (E) demonstrate, to the satisfaction of the
                  Assistant Secretary, that it will appropriate (if the
                  applicant is a State or local government agency) or
                  otherwise unconditionally obligate, from non-Federal
                  sources, funds required to meet the requirements of
                  paragraph (5);/

                  / (F) disclose to the Assistant Secretary the source
                  and amount of other Federal or State funding sources
                  from which the applicant receives, or has applied for,
                  funding for activities or projects to which the
                  application relates; and/

                  / (G) provide such assurances and procedures as the
                  Assistant Secretary may require to ensure that grant
                  funds are used and accounted for in an appropriate
                  manner./

            / (5) The Federal share of any project may not exceed 80
            percent, except that the Assistant Secretary may increase
            the Federal share of a project above 80 percent if--/

                  / (A) the applicant petitions the Assistant Secretary
                  for a waiver; and/

                  / (B) the Assistant Secretary determines that the
                  petition demonstrates financial need./

            / (6) The Assistant Secretary may make competitive grants
            under the program to--/

                  / (A) acquire equipment, instrumentation, networking
                  capability, hardware and software, digital network
                  technology, and infrastructure for broadband services;/

                  / (B) construct and deploy broadband service related
                  infrastructure;/

                  / (C) ensure access to broadband service by community
                  anchor institutions;/

                  / (D) facilitate access to broadband service by
                  low-income, unemployed, aged, and otherwise vulnerable
                  populations in order to provide educational and
                  employment opportunities to members of such populations;/

                  / (E) construct and deploy broadband facilities that
                  improve public safety broadband communications
                  services; and/

                  / (F) undertake such other projects and activities as
                  the Assistant Secretary finds to be consistent with
                  the purposes for which the program is established./

            / (7) The Assistant Secretary--/

                  / (A) shall require any entity receiving a grant
                  pursuant to this section to report quarterly, in a
                  format specified by the Assistant Secretary, on such
                  entity's use of the assistance and progress fulfilling
                  the objectives for which such funds were granted, and
                  the Assistant Secretary shall make these reports
                  available to the public;/

                  / (B) may establish additional reporting and
                  information requirements for any recipient of any
                  assistance made available pursuant to this section;/

                  / (C) shall establish appropriate mechanisms to ensure
                  appropriate use and compliance with all terms of any
                  use of funds made available pursuant to this section;/

                  / (D) may, in addition to other authority under
                  applicable law, deobligate awards to grantees that
                  demonstrate an insufficient level of performance, or
                  wasteful or fraudulent spending, as defined in advance
                  by the Assistant Secretary, and award these funds
                  competitively to new or existing applicants consistent
                  with this section; and/

                  / (E) shall create and maintain a fully searchable
                  database, accessible on the Internet at no cost to the
                  public, that contains at least the name of each entity
                  receiving funds made available pursuant to this
                  section, the purpose for which such entity is
                  receiving such funds, each quarterly report submitted
                  by the entity pursuant to this section, and such other
                  information sufficient to allow the public to
                  understand and monitor grants awarded under the program./

            / (8) Concurrent with the issuance of the Request for
            Proposal for grant applications pursuant to this section,
            the Assistant Secretary shall, in coordination with the
            Federal Communications Commission, publish the
            non-discrimination and network interconnection obligations
            that shall be contractual conditions of grants awarded under
            this section./

            / (9) Within 1 year after the date of enactment of this Act,
            the Commission shall complete a rulemaking to develop a
            national broadband plan. In developing the plan, the
            Commission shall--/

                  / (A) consider the most effective and efficient
                  national strategy for ensuring that all Americans have
                  access to, and take advantage of, advanced broadband
                  services;/

                  / (B) have access to data provided to other Government
                  agencies under the Broadband Data Improvement Act (47
                  U.S.C. 1301 note);/

                  / (C) evaluate the status of deployments of broadband
                  service, including the progress of projects supported
                  by the grants made pursuant to this section; and/

                  / (D) develop recommendations for achieving the goal
                  of nationally available broadband service for the
                  United States and for promoting broadband adoption
                  nationwide./

            / (10) The Assistant Secretary shall develop and maintain a
            comprehensive nationwide inventory map of existing broadband
            service capability and availability in the United States
            that entities and depicts the geographic extent to which
            broadband service capability is deployed and available from
            a commercial provider or public provider throughout each
            State: /Provided,/ That not later than 2 years after the
            date of the enactment of the Act, the Assistant Secretary
            shall make the broadband inventory map developed and
            maintained pursuant to this section accessible to the public./

      / Sec. 202. The Assistant Secretary of Commerce for Communications
      and Information may reissue any coupon issued under section
      3005(a) of the Digital Television Transition and Public Safety Act
      of 2005 that has expired before use, and shall cancel any
      unredeemed coupon reported as lost and may issue a replacement
      coupon for the lost coupon./


      /TITLE III--DEPARTMENT OF DEFENSE/


      /OPERATION AND MAINTENANCE/


      /Operation and Maintenance, Army/

      / For an additional amount for `Operation and Maintenance, Army',
      $1,169,291,000, to remain available for obligation until September
      30, 2010./


      /Operation and Maintenance, Navy/

      / For an additional amount for `Operation and Maintenance, Navy',
      $571,843,000, to remain available for obligation until September
      30, 2010./


      /Operation and Maintenance, Marine Corps/

      / For an additional amount for `Operation and Maintenance, Marine
      Corps', $112,167,000, to remain available for obligation until
      September 30, 2010./


      /Operation and Maintenance, Air Force/

      / For an additional amount for `Operation and Maintenance, Air
      Force', $927,113,000, to remain available for obligation until
      September 30, 2010./


      /Operation and Maintenance, Army Reserve/

      / For an additional amount for `Operation and Maintenance, Army
      Reserve', $79,543,000, to remain available for obligation until
      September 30, 2010./


      /Operation and Maintenance, Navy Reserve/

      / For an additional amount for `Operation and Maintenance, Navy
      Reserve', $44,586,000, to remain available for obligation until
      September 30, 2010./


      /Operation and Maintenance, Marine Corps Reserve/

      / For an additional amount for `Operation and Maintenance, Marine
      Corps Reserve', $32,304,000, to remain available for obligation
      until September 30, 2010./


      /Operation and Maintenance, Air Force Reserve/

      / For an additional amount for `Operation and Maintenance, Air
      Force Reserve', $10,674,000, to remain available for obligation
      until September 30, 2010./


      /Operation and Maintenance, Army National Guard/

      / For an additional amount for `Operation and Maintenance, Army
      National Guard', $215,557,000, to remain available for obligation
      until September 30, 2010./


      /Operation and Maintenance, Air National Guard/

      / For an additional amount for `Operation and Maintenance, Air
      National Guard', $20,922,000, to remain available for obligation
      until September 30, 2010./


      /PROCUREMENT/


      /Defense Production Act Purchases/

      / For an additional amount for `Defense Production Act Purchases',
      $100,000,000, to remain available for obligation until September
      30, 2010./


      /RESEARCH, DEVELOPMENT, TEST AND EVALUATION/


      /Research, Development, Test and Evaluation, Defense-Wide/

      / For an additional amount for `Research, Development, Test and
      Evaluation, Defense-Wide', $200,000,000, to remain available for
      obligation until September 30, 2010./


      /OTHER DEPARTMENT OF DEFENSE PROGRAMS/


      /Defense Health Program/

      / For an additional amount for `Defense Health Program',
      $250,000,000 for operation and maintenance, to remain available
      for obligation until September 30, 2010./


      /Office of the Inspector General/

      / For an additional amount for `Office of the Inspector General',
      $12,000,000 for operation and maintenance, to remain available for
      obligation until September 30, 2011, and an additional $3,000,000
      for such purposes, to remain available until September 30, 2011./


      /TITLE IV--ENERGY AND WATER DEVELOPMENT/


      /DEPARTMENT OF DEFENSE--CIVIL/


      /Department of the Army/


      /Corps of Engineers--Civil/


      /investigations/

      / For an additional amount for `Investigations' for expenses
      necessary where authorized by law for the collection and study of
      basic information pertaining to river and harbor, flood and storm
      damage reduction, shore protection, aquatic ecosystem restoration,
      and related needs; for surveys and detailed studies, and plans and
      specifications of proposed river and harbor, flood and storm
      damage reduction, shore protection, and aquatic ecosystem
      restoration projects and related efforts prior to construction;
      for restudy of authorized projects; and for miscellaneous
      investigations and, when authorized by law, surveys and detailed
      studies, and plans and specifications of projects prior to
      construction, $25,000,000: /Provided,/ That funds provided under
      this heading in this title shall only be used for programs,
      projects or activities that heretofore or hereafter receive funds
      provided in Acts making appropriations available for Energy and
      Water Development: /Provided further,/ That funds provided under
      this heading in this title shall be used for programs, projects or
      activities or elements of programs, projects or activities that
      can be completed within the funds made available in that account
      and that will not require new budget authority to complete:
      /Provided further,/ That for projects that are being completed
      with funds appropriated in this Act that would otherwise be
      expired for obligation, expired funds appropriated in this Act may
      be used to pay the cost of associated supervision, inspection,
      over engineering and design on those projects and on subsequent
      claims, if any: /Provided further,/ That the Secretary shall have
      unlimited reprogramming authority for these funds provided under
      this heading./


      /construction/

      / For an additional amount for `Construction' for expenses
      necessary for the construction of river and harbor, flood and
      storm damage reduction, shore protection, aquatic ecosystem
      restoration, and related projects authorized by law,
      $2,000,000,000, of which such sums as are necessary to cover the
      Federal share of construction costs for facilities under the
      Dredged Material Disposal Facilities program shall be derived from
      the Harbor Maintenance Trust Fund as authorized by Public Law
      104-303: /Provided,/ That not less than $200,000,000 of the funds
      provided shall be for water-related environmental infrastructure
      assistance: /Provided further,/ That section 102 of Public Law
      109-103 (33 U.S.C. 2221) shall not apply to funds provided in this
      title: /Provided further,/ That notwithstanding any other
      provision of law, no funds shall be drawn from the Inland
      Waterways Trust Fund, as authorized in Public Law 99-662:
      /Provided further,/ That funds provided under this heading in this
      title shall only be used for programs, projects or activities that
      heretofore or hereafter receive funds provided in Acts making
      appropriations available for Energy and Water Development:
      /Provided further,/ That funds provided under this heading in this
      title shall be used for programs, projects or activities or
      elements of programs, projects or activities that can be completed
      within the funds made available in that account and that will not
      require new budget authority to complete: /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
      funds appropriated under this heading 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 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); or
      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 for projects
      that are being completed with funds appropriated in this Act that
      would otherwise be expired for obligation, expired funds
      appropriated in this Act may be used to pay the cost of associated
      supervision, inspection, over engineering and design on those
      projects and on subsequent claims, if any: /Provided further,/
      That the Secretary shall have unlimited reprogramming authority
      for these funds provided under this heading./


      /mississippi river and tributaries/

      / For an additional amount for `Mississippi River and Tributaries'
      for expenses necessary for flood damage reduction projects and
      related efforts as authorized by law, $500,000,000, of which such
      sums as are necessary to cover the Federal share of operation and
      maintenance costs for inland harbors shall be derived from the
      Harbor Maintenance Trust Fund, pursuant to Public Law 99-662:
      /Provided,/ That funds provided under this heading in this title
      shall only be used for programs, projects or activities that
      heretofore or hereafter receive funds provided in Acts making
      appropriations available for Energy and Water Development:
      /Provided further,/ That funds provided under this heading in this
      title shall be used for programs, projects or activities or
      elements of programs, projects or activities that can be completed
      within the funds made available in that account and that will not
      require new budget authority to complete: /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 would otherwise be expired for obligation, expired
      funds appropriated in this Act may be used to pay the cost of
      associated supervision, inspection, over engineering and design on
      those projects and on subsequent claims, if any: /Provided
      further,/ That the Secretary shall have unlimited reprogramming
      authority for these funds provided under this heading./


      /operation and maintenance/

      / For an additional amount for `Operation and Maintenance' for
      expenses necessary for the operation, maintenance, and care of
      existing river and harbor, flood and storm damage reduction,
      aquatic ecosystem restoration, and related projects authorized by
      law, and for surveys and charting of northern and northwestern
      lakes and connecting waters, clearing and straightening channels,
      and removal of obstructions to navigation, $1,900,000,000, of
      which such sums as are necessary to cover the Federal share of
      operation and maintenance costs for coastal harbors and channels,
      and inland harbors shall be derived from the Harbor Maintenance
      Trust Fund, pursuant to Public Law 99-662; and of which such sums
      as become available under section 217 of the Water Resources
      Development Act of 1996, Public Law 104-303, shall be used to
      cover the cost of operation and maintenance of the dredged
      material disposal facilities for which fees have been collected:
      /Provided,/ That funds provided under this heading in this title
      shall only be used for programs, projects or activities that
      heretofore or hereafter receive funds provided in Acts making
      appropriations available for Energy and Water Development:
      /Provided further,/ That funds provided under this heading in this
      title shall be used for programs, projects or activities or
      elements of programs, projects or activities that can be completed
      within the funds made available in that account and that will not
      require new budget authority to complete: /Provided further,/ That
      $90,000,000 of the funds provided under this heading shall be used
      for activities described in section 9004 of Public Law 110-114:
      /Provided further,/ That section 9006 of Public Law 110-114 shall
      not apply to funds provided in this title: /Provided further,/
      That for projects that are being completed with funds appropriated
      in this Act that would otherwise be expired for obligation,
      expired funds appropriated in this Act may be used to pay the cost
      of associated supervision, inspection, over engineering and design
      on those projects and on subsequent claims, if any: /Provided
      further,/ That the Secretary shall have unlimited reprogramming
      authority for these funds provided under this heading./


      /regulatory program/

      / For an additional amount for `Regulatory Program' for expenses
      necessary for administration of laws pertaining to regulation of
      navigable waters and wetlands, $25,000,000 is provided./


      /formerly utilized sites remedial action program/

      / For an additional amount for `Formerly Utilized Sites Remedial
      Action Program' for expenses necessary to clean up contamination
      from sites in the United States resulting from work performed as
      part of the Nation's early atomic energy program, $100,000,000:
      /Provided further,/ That funds provided under this heading in this
      title shall be used for programs, projects or activities or
      elements of programs, projects or activities that can be completed
      within the funds made available in that account and that will not
      require new budget authority to complete: /Provided further,/ That
      for projects that are being completed with funds appropriated in
      this Act that would otherwise be expired for obligation, expired
      funds appropriated in this Act may be used to pay the cost of
      associated supervision, inspection, over engineering and design on
      those projects and on subsequent claims, if any: /Provided
      further,/ That the Secretary shall have unlimited reprogramming
      authority for these funds provided under this heading./


      /flood control and coastal emergencies/

      / For an additional amount for `Flood Control and Coastal
      Emergencies' for expenses necessary for pre-placement of materials
      and equipment, advance measures and other activities authorized by
      law, $50,000,000 is provided./


      /DEPARTMENT OF THE INTERIOR/


      /Bureau of Reclamation/


      /water and related resources/

      / For an additional amount for management, development, and
      restoration of water and related natural resources and for related
      activities, including the operation, maintenance, and
      rehabilitation of reclamation and other facilities, participation
      in fulfilling related Federal responsibilities to Native
      Americans, and related grants to, and cooperative and other
      agreements with, State and local governments, federally recognized
      Indian tribes, and others, $1,400,000,000; of which such amounts
      as may be necessary may be advanced to the Colorado River Dam
      Fund: /Provided,/ That of the total appropriated, the amount for
      program activities that can be financed by the Reclamation Fund or
      the Bureau of Reclamation special fee account established by 16
      U.S.C. 460l-6a(i) shall be derived from that Fund or account:
      /Provided further,/ That funds contributed under 43 U.S.C. 395 are
      available until expended for the purposes for which contributed:
      /Provided further,/ That funds advanced under 43 U.S.C. 397a shall
      be credited to this account and are available until expended for
      the same purposes as the sums appropriated under this heading:
      /Provided further,/ That funds provided under this heading in this
      title shall only be used for programs, projects or activities that
      heretofore or hereafter receive funds provided in Acts making
      appropriations available for Energy and Water Development:
      /Provided further,/ That funds provided in this Act shall be used
      for elements of projects, programs or activities that can be
      completed within these funding amounts and not create budgetary
      obligations in future fiscal years: /Provided further,/ That
      $50,000,000 of the funds provided under this heading may be
      transferred to the Department of the Interior for programs,
      projects and activities authorized by the Central Utah Project
      Completion Act (titles II-V of Public Law 102-575): /Provided
      further,/ That $50,000,000 of the funds provided under this
      heading may be used for programs, projects, and activities
      authorized by the California Bay-Delta Restoration Act (Public Law
      108-361): /Provided further,/ That not less than $60,000,000 of
      the funds provided under this heading shall be used for rural
      water projects and shall be expended primarily on water intake and
      treatment facilities of such projects: /Provided further,/ That
      not less than $10,000,000 of the funds provided under this heading
      shall be used for a bureau-wide inspection of canals program in
      urbanized areas: /Provided further,/ That not less than
      $110,000,000 of the funds provided under this heading shall be
      used for water reclamation and reuse projects (title 16 of Public
      Law 102-575): /Provided further,/ That the costs of reimbursable
      activities, other than for maintenance and rehabilitation, carried
      out with funds provided in this Act 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, but in no case shall the repayment period
      exceed 25 years: /Provided further,/ That for projects that are
      being completed with funds appropriated in this Act that would
      otherwise be expired for obligation, expired funds appropriated in
      this Act may be used to pay the cost of associated supervision,
      inspection, over engineering and design on those projects and on
      subsequent claims, if any: /Provided further,/ That the Secretary
      shall have unlimited reprogramming authority for these funds
      provided under this heading./


      /DEPARTMENT OF ENERGY/


      /Energy Programs/


      /energy efficiency and renewable energy/

      / For an additional amount for `Energy Efficiency and Renewable
      Energy', $14,398,000,000, for necessary expenses, to remain
      available until September 30, 2010: /Provided,/ That
      $4,200,000,000 shall be available 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.), of which
      $2,100,000,000 is available through the formula in subtitle E:
      /Provided further,/ That the remaining $2,100,000,000 shall be
      awarded on a competitive basis only to competitive grant
      applicants from States in which the Governor certifies to the
      Secretary of Energy that the applicable State regulatory authority
      will implement the integrated resource planning and rate design
      modifications standards required to be considered under paragraphs
      (16) and (17) of section 111(d) of the Public Utility Regulatory
      Policies Act of 1978 (16 U.S.C. 2621(d)(16) and (17)); and the
      Governor will take all actions within his or her authority to
      ensure that the State, or the applicable units of local government
      that have authority to adopt building codes, will implement--/

            / (A) building energy codes for residential buildings that
            the Secretary determines are likely to meet or exceed the
            2009 International Energy Conservation Code;/

            / (B) building energy codes for commercial buildings that
            the Secretary determines are likely to meet or exceed the
            ANSI/ASHRAE/IESNA Standard 90.1-2007; and/

            / (C) a plan for implementing and enforcing the building
            energy codes described in subparagraphs (A) and (B) that is
            likely to ensure that at least 90 percent of the new and
            renovated residential and commercial building space will
            meet the standards within 8 years after the date of
            enactment of this Act:/

      //Provided further,/ That $2,000,000,000 shall be available for
      grants for the manufacturing of advanced batteries and components
      and the Secretary shall provide facility funding awards under this
      section to manufacturers of advanced battery systems and vehicle
      batteries that are produced in the United States, including
      advanced lithium ion batteries, hybrid electrical systems,
      component manufacturers, and software designers: /Provided
      further,/ 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, upon a
      determination that there is a severe shortage of candidates or a
      critical hiring need for particular positions, may from within the
      funds provided, 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, for necessary expenses, to remain
      available until September 30, 2010: /Provided,/ That $100,000,000
      shall be available for worker training activities: /Provided
      further,/ 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, upon a
      determination that there is a severe shortage of candidates or a
      critical hiring need for particular positions, may from within the
      funds provided, 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: /Provided,/ That for the purpose of facilitating
      the development of regional transmission plans, the Office of
      Electricity Delivery and Energy Reliability within the Department
      of Energy is provided $80,000,000 within the available funds to
      conduct a resource assessment and an analysis of future demand and
      transmission requirements: /Provided further,/ That the Office of
      Electricity Delivery and Energy Reliability will provide technical
      assistance to the North American Electric Reliability Corporation,
      the regional reliability entities, the States, and other
      transmission owners and operators for the formation of
      interconnection-based transmission plans for the Eastern and
      Western Interconnections and ERCOT: /Provided further,/ That such
      assistance may include modeling, support to regions and States for
      the development of coordinated State electricity policies,
      programs, laws, and regulations: /Provided further,/ That
      $10,000,000 is provided to implement section 1305 of Public Law
      110-140./


      /Fossil Energy Research and Development/

      / For an additional amount for `Fossil Energy Research and
      Development', $4,600,000,000, to remain available until September
      30, 2010: /Provided,/ That $2,000,000,000 is available for one or
      more near zero emissions powerplant(s): /Provided further,/
      $1,000,000,000 is available for selections under the Department's
      Clean Coal Power Initiative Round III Funding Opportunity
      Announcement; notwithstanding the mandatory eligibility
      requirements of the Funding Opportunity Announcement, the
      Department shall consider applications that utilize petroleum coke
      for some or all of the project's fuel input: /Provided further,/
      $1,520,000,000 is available for a competitive solicitation
      pursuant to section 703 of Public Law 110-140 for projects that
      demonstrate carbon capture from industrial sources: /Provided
      further,/ That awards for such projects may include plant
      efficiency improvements for integration with carbon capture
      technology./


      /Non-Defense Environmental Cleanup/

      / For an additional amount for `Non-Defense Environmental
      Cleanup', $483,000,000, to remain available until September 30, 2010./


      /Uranium Enrichment Decontamination and Decommissioning Fund/

      / For an additional amount for `Uranium Enrichment Decontamination
      and Decommissioning Fund', $390,000,000, to remain available until
      September 30, 2010, of which $70,000,000 shall be available in
      accordance with title X, subtitle A of the Energy Policy Act of 1992./


      /Science/

      / For an additional amount for `Science', $330,000,000, to remain
      available until September 30, 2010./


      /Title 17--Innovative Technology Loan Guarantee Program/

      / Subject to section 502 of the Congressional Budget Act of 1974,
      commitments to guarantee loans under section 1702(b)(2) of the
      Energy Policy Act of 2005, shall not exceed a total principal
      amount of $50,000,000,000 for eligible projects, to remain
      available until committed: /Provided,/ That these amounts are in
      addition to any authority provided elsewhere in this Act and this
      and previous fiscal years: /Provided further,/ That such sums as
      are derived from amounts received from borrowers pursuant to
      section 1702(b)(2) of the Energy Policy Act of 2005 under this
      heading in this and prior Acts, shall be collected in accordance
      with section 502(7) of the Congressional Budget Act of 1974:
      /Provided further,/ That the source of such payment received from
      borrowers is not a loan or other debt obligation that is
      guaranteed by the Federal Government: /Provided further,/ That
      pursuant to section 1702(b)(2) of the Energy Policy Act of 2005,
      no appropriations are available to pay the subsidy cost of such
      guarantees: /Provided further,/ That none of the loan guarantee
      authority made available in this Act shall be available for
      commitments to guarantee loans under section 1702(b)(2) of the
      Energy Policy Act of 2005 for any projects where funds, personnel,
      or property (tangible or intangible) of any Federal agency,
      instrumentality, personnel or affiliated entity are expected to be
      used (directly or indirectly) through acquisitions, contracts,
      demonstrations, exchanges, grants, incentives, leases,
      procurements, sales, other transaction authority, or other
      arrangements, to support the project or to obtain goods or
      services from the project: /Provided further,/ That none of the
      loan guarantee authority made available in this Act shall be
      available under section 1702(b)(2) of the Energy Policy Act of
      2005 for any project unless the Director of the Office of
      Management and Budget has certified in advance in writing that the
      loan guarantee and the project comply with the provisions under
      this title: /Provided further,/ That for an additional amount for
      the cost of guaranteed loans authorized by section 1702(b)(1) and
      section 1705 of the Energy Policy Act of 2005, $8,500,000,000,
      available until expended, to pay the costs of guarantees made
      under this section: /Provided further,/ That of the amount
      provided for Title XVII, $15,000,000 shall be used for
      administrative expenses in carrying out the guaranteed loan program./


      /Office of the Inspector General/

      / For necessary expenses of the Office of the Inspector General in
      carrying out the provisions of the Inspector General Act of 1978,
      as amended, $5,000,000, to remain available until September 30,
      2012, and an additional $10,000,000 for such purposes, to remain
      available until September 30, 2012./


      /ATOMIC ENERGY DEFENSE ACTIVITIES/


      /National Nuclear Security Administration/


      /weapons activities/

      / For an additional amount for weapons activities, $1,000,000,000,
      to remain available until September 30, 2010./


      /Environmental and Other Defense Activities/


      /defense environmental cleanup/

      / For an additional amount for `Defense Environmental Cleanup',
      $5,527,000,000, to remain available until September 30, 2010./


      /Construction, Rehabilitation, Operation, and Maintenance, Western
      Area Power Administration/

      / For carrying out the functions authorized by title III, section
      302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. 7152), and
      other related activities including conservation and renewable
      resources programs as authorized, $10,000,000, to remain available
      until expended: /Provided,/ That the Administrator shall establish
      such personnel staffing levels as he deems necessary to
      economically and efficiently complete the activities pursued under
      the authority granted by section 402 of this Act: /Provided
      further,/ That this appropriation is non-reimbursable./


      /GENERAL PROVISIONS--THIS TITLE/

      / Sec. 401. Bonneville Power Administration Borrowing Authority.
      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 of the Bonneville Power
      Administration 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. 402. 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 one time) as, in
                  the judgment of the Administrator, are from time to
                  time required for the purpose of--/

                        / `(i) constructing, financing, facilitating,
                        planning, operating, maintaining, or studying
                        construction of new or upgraded electric power
                        transmission lines and related facilities with
                        at least one 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 the financing, construction and
            ownership 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 additional authority or
            obligation to provide ancillary services to users of
            transmission facilities developed under this section./

            / `(5) TREATMENT OF CERTAIN REVENUES- Revenue from ancillary
            services provided by existing Federal power systems to users
            of transmission projects funded pursuant to this section
            shall be treated as revenue to the existing power system
            that provided the ancillary services./

      / `(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 INTEREST- 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. 403. Technical Corrections to the Energy Independence and
      Security Act of 2007. Title XIII of the Energy Independence and
      Security Act of 2007 (15 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 including those in rural
                  areas and/or areas where the majority of generation
                  and transmission assets are controlled by a tax-exempt
                  entity.'./

            / (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 a new subparagraph (E) after
            1304(b)(3)(D) as follows:/

                        / `(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.'./

            / (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) 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) establish procedures to ensure that there is no
            duplication or multiple payment 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;/

            / `(3) maintain public records of grants made, recipients,
            and qualifying Smart Grid investments which have received
            grants;/

            / `(4) establish procedures to provide advance payment of
            moneys up to the full amount of the grant award; and/

            / `(5) have and exercise the discretion to deny grants for
            investments that do not qualify in the reasonable judgment
            of the Secretary.'./

      / Sec. 404. Temporary Stimulus 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 reach financial close not
      later than September 30, 2012./

      / `(b) Categories- Projects from only the following categories
      shall be eligible for support under this section:/

            / `(1) Renewable energy systems./

            / `(2) Electric power transmission systems./

      / `(c) Authorization Limit- There are authorized to be
      appropriated $10,000,000,000 to the Secretary for fiscal years
      2009 through 2012 to provide the cost of guarantees made under
      section./

      / `(d) Sunset- The authority to enter into guarantees under this
      section shall expire on September 30, 2012.'./

      / (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. 405. Weatherization 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) Training and Technical Assistance- Section 416 of the Energy
      Conservation and Production Act (42 U.S.C. 6866) is amended by
      striking `10 percent' and inserting `up to 20 percent'./

      / Sec. 406. Technical Corrections to Public Utility Regulatory
      Policies Act of 1978. (a) Section 111(d) of the Public Utility
      Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
      redesignating paragraph (16) relating to consideration of smart
      grid investments (added by section 1307(a) of Public Law 110-140)
      as paragraph (18) and by redesignating paragraph (17) relating to
      smart grid information (added by section 1308(a) of Public Law
      110-140) as paragraph (19)./

      / (b) Subsections (b) and (d) of section 112 of the Public Utility
      Regulatory Policies Act of 1978 (16 U.S.C. 2622) are each amended
      by striking `(17) through (18)' in each place it appears and
      inserting `(16) through (19)'./


      /TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT/


      /DEPARTMENT OF THE TREASURY/


      /Community Development Financial Institutions Fund Program Account/

      / For an additional amount for `Community Development Financial
      Institutions Fund Program Account', $250,000,000, to remain
      available until September 30, 2010, for qualified applicants under
      the fiscal year 2008 and 2009 funding rounds of the Community
      Development Financial Institutions Program, of which up to
      $20,000,000 may be for financial assistance, technical assistance,
      training and outreach programs, including up to $5,000 for
      subsistence expenses, designed to benefit Native American, Native
      Hawaiian, and Alaskan Native communities and provided primarily
      through qualified community development lender organizations with
      experience and expertise in community development banking and
      lending in Indian country, Native American organizations, tribes
      and tribal organizations and other suitable providers and up to
      $5,000,000 may be used for administrative expenses: /Provided,/
      That for purposes of the fiscal year 2008 and 2009 funding rounds,
      the following statutory provisions are hereby waived: 12 U.S.C.
      4707(e) and 12 U.S.C. 4707(d): /Provided further,/ That no
      awardee, together with its subsidiaries and affiliates, may be
      awarded more than 15 percent of the aggregate funds available
      during each of fiscal years 2008 and 2009 from the Community
      Development Financial Institutions Program: /Provided further,/
      That no later than 60 days after the date of enactment of this
      Act, the Department of the Treasury shall submit to the Committees
      on Appropriations of the House of Representatives and the Senate a
      detailed expenditure plan for funds provided under this heading./


      /DISTRICT OF COLUMBIA/


      /Federal Payments/


      /federal payment to the district of columbia water and sewer
      authority/

      / For a Federal payment to the District of Columbia Water and
      Sewer Authority, $125,000,000, to remain available until September
      30, 2010, to continue implementation of the Combined Sewer
      Overflow Long-Term Control Plan: /Provided,/ That the District of
      Columbia Water and Sewer Authority provide a 100 percent match for
      this payment: /Provided further,/ That no later than 60 days after
      the date of enactment of this Act, the District of Columbia Water
      and Sewer Authority shall submit to the Committees on
      Appropriations of the House of Representatives and the Senate a
      detailed expenditure plan for funds provided under this heading:
      /Provided further,/ That such expenditure plan shall include a
      description of each specific project, how specific projects will
      further the objectives of the Long-Term Control Plan, and all
      funding sources for each project./


      /GENERAL SERVICES ADMINISTRATION/


      /Real Property Activities/


      /federal buildings fund/


      /limitations on availability of revenue/


      /(including transfer of funds)/

      / For an additional amount to be deposited in the Federal
      Buildings Fund, $5,548,000,000, to carry out the purposes of the
      Fund, of which not less than $1,400,000,000 shall be available for
      Federal buildings and United States courthouses, not less than
      $1,200,000,000 shall be available for border stations, and not
      less than $2,500,000,000 shall be available for measures necessary
      to convert GSA facilities to High-Performance Green Buildings, as
      defined in section 401 of Public Law 110-140: /Provided,/ That not
      to exceed $108,000,000 of the amounts provided under this heading
      may be expended for rental of space, related to leasing of
      temporary space in connection with projects funded under this
      heading: /Provided further,/ That not to exceed $127,000,000 of
      the amounts provided under this heading may be expended for
      building operations, for the administrative costs of completing
      projects funded under this heading: /Provided further,/ That not
      less than $5,000,000,000 of the funds provided under this heading
      shall be obligated by September 30, 2010: /Provided further,/ That
      the Administrator of General Services is authorized to initiate
      design, construction, repair, alteration, and other projects
      through existing authorities of the Administrator: /Provided
      further,/ That the General Services Administration shall submit a
      detailed plan, by project, regarding the use of funds made
      available in this Act to the Committees on Appropriations of the
      House of Representatives and the Senate within 60 days of
      enactment of this Act: /Provided further,/ That of the amounts
      provided for converting GSA facilities to High-Performance Green
      Buildings, $4,000,000 shall be transferred to and merged with
      `Government-Wide Policy', for carrying out the provisions of
      section 436 of the Energy Independence and Security Act of 2007
      (Public Law 110-140), establishing an Office of Federal
      High-Performance Green Buildings, to remain available until
      September 30, 2010: /Provided further,/ That within the overall
      amount to be deposited into the Fund, $448,000,000 shall remain
      available until September 30, 2011, for the development and
      construction of the headquarters for the Department of Homeland
      Security, except that none of the preceding provisos shall apply
      to amounts made available under this proviso./


      /Energy-Efficient Federal Motor Vehicle Fleet Procurement/

      / For capital expenditures and necessary expenses of acquiring
      motor vehicles with higher fuel economy, including: hybrid
      vehicles; neighborhood electric vehicles; electric vehicles; and
      commercially-available, plug-in hybrid vehicles, $300,000,000, to
      remain available until September 30, 2011./


      /Office of Inspector General/

      / For an additional amount for the Office of the Inspector
      General, to remain available until September 30, 2011, $2,000,000
      and an additional $5,000,000 for such purposes, to remain
      available until September 30, 2012./


      /RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY BOARD/

      / For necessary expenses of the Recovery Act Accountability and
      Transparency Board to carry out the provisions of title XV of this
      Act, $7,000,000, to remain available until September 30, 2010./


      /SMALL BUSINESS ADMINISTRATION/


      /Salaries and Expenses/

      / For an additional amount, to remain available until September
      30, 2010, $84,000,000, of which $24,000,000 is for marketing,
      management, and technical assistance under section 7(m) of the
      Small Business Act (15 U.S.C. 636(m)(4)) by intermediaries that
      make microloans under the microloan program, of which $15,000,000
      is for lender oversight activities as authorized in section 501(c)
      of this title, and of which $20,000,000 is for improving,
      streamlining, and automating information technology systems
      related to lender processes and lender oversight: /Provided,/ That
      no later than 60 days after the date of enactment of this Act, the
      Small Business Administration shall submit to the Committees on
      Appropriations of the House of Representatives and the Senate a
      detailed expenditure plan for funds provided under the heading
      `Small Business Administration' in this Act./


      /Office of Inspector General/

      / For an additional amount for the Office of Inspector General in
      carrying out the provisions of the Inspector General Act of 1978,
      $10,000,000, to remain available until September 30, 2011./


      /Surety Bond Guarantees Revolving Fund/

      / For additional capital for the Surety Bond Guarantees Revolving
      Fund, authorized by the Small Business Investment Act of 1958,
      $15,000,000, to remain available until expended./


      /Business Loans Program Account/

      / For an additional amount for the cost of direct loans,
      $6,000,000, to remain available until September 30, 2010, and for
      an additional amount for the cost of guaranteed loans,
      $615,000,000, to remain available until September 30, 2010:
      /Provided,/ That of the amount for the cost of guaranteed loans,
      $515,000,000 shall be for loan subsidies and loan modifications
      for loans to small business concerns authorized in section 501(a)
      of this title; and $100,000,000 shall be for loan subsidies and
      loan modifications for loans to small business concerns authorized
      in section 501(b) of this title: /Provided further,/ That such
      costs, including the cost of modifying such loans, shall be as
      defined in section 502 of the Congressional Budget Act of 1974./


      /Administrative Provisions--Small Business Administration/

      / Sec. 501. Economic Stimulus for Small Business Concerns. (a)
      Temporary Fee Elimination for the 7(a) Loan Program- Until
      September 30, 2010, and to the extent that the cost of such
      elimination of fees is offset by appropriations, with respect to
      each loan guaranteed under section 7(a) of the Small Business Act
      (15 U.S.C. 636(a)) for which the application is approved on or
      after the date of enactment of this Act, the Administrator shall--/

            / (1) in lieu of the fee otherwise applicable under section
            7(a)(23)(A) of the Small Business Act (15 U.S.C.
            636(a)(23)(A)), collect no fee; and/

            / (2) in lieu of the fee otherwise applicable under section
            7(a)(18)(A) of the Small Business Act (15 U.S.C.
            636(a)(18)(A)), collect no fee./

      / (b) Temporary Fee Elimination for the 504 Loan Program- /

            / (1) IN GENERAL- Until September 30, 2010, and to the
            extent the cost of such elimination in fees is offset by
            appropriations, with respect to each project or loan
            guaranteed by the Administrator under title V of the Small
            Business Investment Act of 1958 (15 U.S.C. 695 et seq.) for
            which an application is approved or pending approval on or
            after the date of enactment of this Act--/

                  / (A) the Administrator shall, in lieu of the fee
                  otherwise applicable under section 503(d)(2) of the
                  Small Business Investment Act of 1958 (15 U.S.C.
                  697(d)(2)), collect no fee;/

                  / (B) a development company shall, in lieu of the
                  processing fee under section 120.971(a)(1) of title
                  13, Code of Federal Regulations (relating to fees paid
                  by borrowers), or any successor thereto, collect no fee./

            / (2) REIMBURSEMENT FOR WAIVED FEES- /

                  / (A) IN GENERAL- To the extent that the cost of such
                  payments is offset by appropriations, the
                  Administrator shall reimburse each development company
                  that does not collect a processing fee pursuant to
                  paragraph (1)(B)./

                  / (B) AMOUNT- The payment to a development company
                  under subparagraph (A) shall be in an amount equal to
                  1.5 percent of the net debenture proceeds for which
                  the development company does not collect a processing
                  fee pursuant to paragraph (1)(B)./

      / (c) Temporary Fee Elimination of Lender Oversight Fees- Until
      September 30, 2010, and to the extent the cost of such elimination
      in fees is offset by appropriations, the Administrator shall, in
      lieu of the fee otherwise applicable under section 5(b)(14) of the
      Small Business Act (15 U.S.C. 634(b)(14)), collect no fee./

      / (d) Application of Fee Eliminations- The Administrator shall
      eliminate fees under subsections (a), (b), and (c) until the
      amount provided for such purposes, as applicable, under the
      headings `Salaries and Expenses' and `Business Loans Program
      Account' under the heading `Small Business Administration' under
      this Act are expended./

      / Sec. 502. Financial Assistance Program Improvements. (a) 7(a)
      Loan Maximum Amount- Section 7(a)(3)(A) of the Small Business Act
      (15 U.S.C. 636(a)(3)(A)) is amended by striking `$1,500,000 (or if
      the gross loan amount would exceed $2,000,000)' and inserting
      `$2,250,000 (or if the gross loan amount would exceed $3,000,000)'./

      / (b) Small Business Investment Companies- /

            / (1) MAXIMUM LEVERAGE- Section 303(b) of the Small Business
            Investment Act of 1958 (15 U.S.C. 683(b)) is amended--/

                  / (A) in paragraph (2), by striking subparagraphs (A),
                  (B), and (C) and inserting the following:/

                  / `(A) IN GENERAL- The maximum amount of outstanding
                  leverage made available to any 1 company licensed
                  under section 301(c) may not exceed the lesser of--/

                        / `(i) 300 percent of the private capital of the
                        company; or/

                        / `(ii) $150,000,000./

                  / `(B) MULTIPLE LICENSES UNDER COMMON CONTROL- The
                  maximum amount of outstanding leverage made available
                  to 2 or more companies licensed under section 301(c)
                  that are commonly controlled (as determined by the
                  Administrator) may not exceed $225,000,000./

                  / `(C) INVESTMENTS IN LOW-INCOME GEOGRAPHIC AREAS- /

                        / `(i) IN GENERAL- The maximum amount of
                        outstanding leverage made available to--/

                              / `(I) any 1 company described in clause
                              (ii) may not exceed the lesser of--/

/ `(aa) 300 percent of private capital of the company; or/

/ `(bb) $175,000,000; and/

                              / `(II) 2 or more companies described in
                              clause (ii) that are commonly controlled
                              (as determined by the Administrator) may
                              not exceed $250,000,000./

                        / `(ii) APPLICABILITY- A company described in
                        this clause is a company licensed under section
                        301(c) that certifies in writing that not less
                        than 50 percent of the dollar amount of
                        investments of that company shall be made in
                        companies that are located in a low-income
                        geographic area (as that term is defined in
                        section 351).'; and/

                  / (B) by striking paragraph (4)./

            / (2) INVESTMENTS IN SMALLER ENTERPRISES- Section 303(d) of
            the Small Business Investment Act of 1958 (15 U.S.C. 683(d))
            is amended to read as follows:/

      / `(d) Investments in Smaller Enterprises- The Administrator shall
      require each licensee, as a condition of approval of an
      application for leverage, to certify in writing that not less than
      25 percent of the aggregate dollar amount of financings of that
      licensee shall be provided to smaller enterprises.'./

            / (3) MAXIMUM INVESTMENT IN A COMPANY- Section 306(a) of the
            Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is
            amended by striking `20 per centum' and inserting `30 percent'./

      / (c) Maximum 504 Loan Size- Section 502(2)(A) of the Small
      Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is amended--/

            / (1) in clause (i), by striking `$1,500,000' and inserting
            `$3,000,000';/

            / (2) in clause (ii), by striking `$2,000,000' and inserting
            `$3,500,000'; and/

            / (3) in clause (iii), by striking `$4,000,000' and
            inserting `$5,500,000'./

      / Sec. 503. Low-Interest Refinancing. 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 FINANCING- A financing under this
            title may include refinancing of existing indebtedness, in
            an amount not to exceed 50 percent of the projected cost of
            the project financed under this title, if--/

                  / `(A) the project financed under this title involves
                  the expansion of a small business concern;/

                  / `(B) the existing indebtedness is collateralized by
                  fixed assets;/

                  / `(C) the existing indebtedness was incurred for the
                  benefit of the small business concern;/

                  / `(D) the proceeds of the existing indebtedness were
                  used to acquire land (including a building situated
                  thereon), to construct or expand a building thereon,
                  or to purchase equipment;/

                  / `(E) the borrower has been current on all payments
                  due on the existing indebtedness for not less than 1
                  year preceding the proposed date of refinancing;/

                  / `(F) the financing under this title will provide
                  better terms or a better rate of interest than exists
                  on the existing indebtedness on the proposed date of
                  refinancing;/

                  / `(G) the financing under this title is not being
                  used to refinance any debt guaranteed by the
                  Government; and/

                  / `(H) the financing under this title will be used
                  only for--/

                        / `(i) refinancing existing indebtedness; or/

                        / `(ii) costs relating to the project financed
                        under this title.'./

      / Sec. 504. Definitions. Under the heading `Small Business
      Administration' in this title--/

            / (1) the terms `Administration' and `Administrator' mean
            the Small Business Administration and the Administrator
            thereof, respectively;/

            / (2) the term `development company' has the meaning given
            the term `development companies' in section 103 of the Small
            Business Investment Act of 1958 (15 U.S.C. 662); and/

            / (3) the term `small business concern' has the same meaning
            as in section 3 of the Small Business Act (15 U.S.C. 632)./


      /SEC. 505. SURETY BONDS./

      / (a) Maximum Bond Amount- Section 411(a)(1) of the Small Business
      Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended--/

            / (1) by inserting `(A)' after `(1)';/

            / (2) by striking `$2,000,000' and inserting `$5,000,000'; and/

            / (3) by adding at the end the following:/

      / `(B) The Administrator may guarantee a surety under subparagraph
      (A) for a total work order or contract amount that does not exceed
      $10,000,000, if a contracting officer of a Federal agency
      certifies that such a guarantee is necessary.'./

      / (b) Size Standards- Section 410 of the Small Business Investment
      Act of 1958 (15 U.S.C. 694a) is amended by adding at the end the
      following:/

            / `(9) Notwithstanding any other provision of law or any
            rule, regulation, or order of the Administration, for
            purposes of sections 410, 411, and 412 the term `small
            business concern' means a business concern that meets the
            size standard for the primary industry in which such
            business concern, and the affiliates of such business
            concern, is engaged, as determined by the Administrator in
            accordance with the North American Industry Classification
            System.'./

      / (c) Sunset- The amendments made by this section shall remain in
      effect until September 30, 2010./

      / Sec. 506- Office of Inspector General. For an additional amount
      for `Treasury Office of Inspector General for Tax Administration',
      $7,000,000, to remain available until September 30, 2012, for
      oversight and audit of programs grants and activities funded under
      this title./


      /TITLE VI--DEPARTMENT OF HOMELAND SECURITY/


      /DEPARTMENT OF HOMELAND SECURITY/


      /Office of the Under Secretary for Management/

      / For an additional amount for the `Office of the Under Secretary
      for Management', $198,000,000, to remain available until September
      30, 2011, solely for planning, design, and construction costs,
      including site security, information technology infrastructure,
      fixtures, and related costs to consolidate the Department of
      Homeland Security headquarters: /Provided,/ That no later than 60
      days after the date of enactment of this Act, the Secretary of
      Homeland Security, in consultation with the Administrator of
      General Services, shall submit to the Committees on Appropriations
      of the Senate and the House of Representatives a plan for the
      expenditure of these funds./


      /office of inspector general/

      / For an additional amount for the `Office of Inspector General',
      $5,000,000, to remain available until September 30, 2012, for
      oversight and audit of programs, grants, and projects funded under
      this title./


      /U.S. Customs and Border Protection/


      /salaries and expenses/

      / For an additional amount for `Salaries and Expenses',
      $198,000,000, to remain available until September 30, 2010, of
      which $100,800,000 shall be for the procurement and deployment of
      non-intrusive inspection systems to improve port security; and of
      which $97,200,000 shall be for procurement and deployment of
      tactical communications equipment and radios: /Provided,/ That no
      later than 45 days after the date of enactment of this Act, the
      Secretary of Homeland Security shall submit to the Committees on
      Appropriations of the Senate and the House of Representatives a
      plan for expenditure of these funds./


      /border security fencing, infrastructure, and technology/

      / For an additional amount for `Border Security Fencing,
      Infrastructure, and Technology', $200,000,000, to remain available
      until September 30, 2010, for expedited development and deployment
      of border security technology on the Southwest border: /Provided,/
      That no later than 45 days after the date of enactment of this
      Act, the Secretary of Homeland Security shall submit to the
      Committees on Appropriations of the Senate and the House of
      Representatives a plan for expenditure of these funds./


      /construction/

      / For an additional amount for `Construction', $800,000,000, to
      remain available until expended, solely for planning, management,
      design, alteration, and construction of U.S. Customs and Border
      Protection owned land border ports of entry: /Provided,/ That no
      later than 45 days after the date of enactment of this Act, the
      Secretary of Homeland Security shall submit to the Committees on
      Appropriations of the Senate and the House of Representatives a
      plan for expenditure of these funds./


      /U.S. Immigration and Customs Enforcement/


      /automation modernization/

      / For an additional amount for `Automation Modernization',
      $27,800,000, to remain available until September 30, 2010, for the
      procurement and deployment of tactical communications equipment
      and radios: /Provided,/ That no later than 45 days after the date
      of enactment of this Act, the Secretary of Homeland Security shall
      submit to the Committees on Appropriations of the Senate and the
      House of Representatives a plan for expenditure of these funds./


      /Transportation Security Administration/


      /aviation security/

      / For an additional amount for `Aviation Security',
      $1,000,000,000, to remain available until September 30, 2010, for
      procurement and installation of checked baggage explosives
      detection systems and checkpoint explosives detection equipment:
      /Provided,/ That no later than 45 days after the date of enactment
      of this Act, the Secretary of Homeland Security shall submit to
      the Committees on Appropriations of the Senate and the House of
      Representatives a plan for the expenditure of these funds./


      /Coast Guard/


      /acquisition, construction, and improvements/

      / For an additional amount for `Acquisition, Construction, and
      Improvements', $450,000,000, to remain available until September
      30, 2010, of which $195,000,000 shall be for shore facilities and
      aids to navigation facilities; and of which $255,000,000 shall be
      for priority procurements due to materials and labor cost
      increases, and to repair, renovate, assess, or improve vessels:
      /Provided,/ That amounts made available for the activities under
      this heading shall be available for all necessary expenses related
      to the oversight and management of such activities: /Provided
      further,/ That no later than 45 days after the date of enactment
      of this Act, the Secretary of Homeland Security shall submit to
      the Committees on Appropriations of the Senate and the House of
      Representatives a plan for the expenditure of these funds./


      /alteration of bridges/

      / For an additional amount for `Alteration of Bridges',
      $240,400,000, to remain available until September 30, 2010, for
      alteration or removal of obstructive bridges, as authorized by
      section 6 of the Truman-Hobbs Act (33 U.S.C. 516): /Provided,/
      That no later than 45 days after the date of enactment of this
      Act, the Secretary of Homeland Security shall submit to the
      Committees on Appropriations of the Senate and the House of
      Representatives a plan for the expenditure of these funds./


      /Federal Emergency Management Agency/


      /management and administration/

      / For an additional amount for `Management and Administration',
      $6,000,000 for the acquisition of communications response vehicles
      to be deployed in response to a disaster or a national security
      event./


      /state and local programs/

      / For an additional amount for grants, $950,000,000, to be
      allocated as follows:/

            / (1) $100,000,000, to remain available until September 30,
            2010, for Public Transportation Security Assistance,
            Railroad Security Assistance, and Systemwide Amtrak Security
            Upgrades under sections 1406, 1513, and 1514 of the
            Implementing Recommendations of the 9/11 Commission Act of
            2007 (Public Law 110-53; 6 U.S.C. 1135, 1163, and 1164)./

            / (2) $100,000,000, to remain available until September 30,
            2010, for Port Security Grants in accordance with 46 U.S.C.
            70107, notwithstanding 46 U.S.C. 70107(c)./

            / (3) $250,000,000, to remain available until September 30,
            2010, for upgrading, modifying, or constructing emergency
            operations centers under section 614 of the Robert T.
            Stafford Disaster Relief and Emergency Assistance Act,
            notwithstanding section 614(c) of that Act or for upgrading,
            modifying, or constructing State and local fusion centers as
            defined by section 210A(j)(1) of the Homeland Security Act
            of 2002 (6 U.S.C. 124h(j)(1))./

            / (4) $500,000,000 for construction to upgrade or modify
            critical infrastructure, as defined in section 1016(e) of
            the USA PATRIOT Act of 2001 (42 U.S.C. 5195c(e)), to
            mitigate consequences related to potential damage from
            all-hazards: /Provided,/ That funds in this paragraph shall
            remain available until September 30, 2011: /Provided
            further,/ That 5 percent shall be for program
            administration: /Provided further,/ That no later than 60
            days after the date of enactment of this Act, the Secretary
            of Homeland Security shall submit to the Committees on
            Appropriations of the Senate and the House of
            Representatives a plan for expenditure of these funds./


      /firefighter assistance grants/

      / For an additional amount for competitive grants, $500,000,000,
      to remain available until September 30, 2010, for modifying,
      upgrading, or constructing State and local fire stations:
      /Provided,/ That up to 5 percent shall be for program
      administration: /Provided further,/ That no grant shall exceed
      $15,000,000./


      /disaster assistance direct loan program account/

      / Notwithstanding section 417(b) of the Robert T. Stafford
      Disaster Relief and Emergency Assistance Act, the amount of any
      such loan issued pursuant to this section for major disasters
      occurring in calendar year 2008 may exceed $5,000,000, and may be
      equal to not more than 50 percent of the annual operating budget
      of the local government in any case in which that local government
      has suffered a loss of 25 percent or more in tax revenues:
      /Provided,/ That the cost of modifying such loans shall be as
      defined in section 502 of the Congressional Budget Act of 1974 (2
      U.S.C. 661a)./


      /emergency food and shelter/

      / For an additional amount 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.), $100,000,000:
      /Provided,/ That total administrative costs shall not exceed 3.5
      percent of the total amount made available under this heading./


      /Federal Law Enforcement Training Center/


      /acquisition, construction, improvements, and related expenses/

      / For an additional amount for `Acquisition, Construction,
      Improvements, and Related Expenses', $15,000,000, to remain
      available until September 30, 2010, for security systems and law
      enforcement upgrades for all Federal Law Enforcement Training
      Center facilities: /Provided,/ That no later than 45 days after
      the date of enactment of this Act, the Secretary of Homeland
      Security shall submit to the Committees on Appropriations of the
      Senate and the House of Representatives a plan for the expenditure
      of these funds./


      /GENERAL PROVISIONS--THIS TITLE/

      / Sec. 601. Notwithstanding any other provision of law, the
      President shall establish an arbitration panel under the Federal
      Emergency Management Agency public assistance program to expedite
      the recovery efforts from Hurricanes Katrina, Rita, Gustav, and
      Ike within the Gulf Coast Region. The arbitration panel shall have
      sufficient authority regarding the award or denial of disputed
      public assistance applications for covered hurricane damage under
      section 403, 406, or 407 of the Robert T. Stafford Disaster Relief
      and Emergency Assistance Act (42 U.S.C. 5170b, 5172, or 5173) for
      a project the total amount of which is more than $500,000./

      / Sec. 602. The Administrator of the Federal Emergency Management
      Agency may not prohibit or restrict the use of funds designated
      under the hazard mitigation grant program for damage caused by
      Hurricanes Katrina and Rita if the homeowner who is an applicant
      for assistance under such program commenced work otherwise
      eligible for hazard mitigation grant program assistance under
      section 404 of the Robert T. Stafford Disaster Relief and
      Emergency Assistance Act (42 U.S.C. 5170c) without approval in
      writing from the Administrator./


      /TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES/


      /DEPARTMENT OF THE INTERIOR/


      /Bureau of Land Management/


      /management of lands and resources/

      / For an additional amount for `Management of Lands and
      Resources', $135,000,000, to remain available until September 30,
      2010./


      /construction/

      / For an additional amount for `Construction', $180,000,000, to
      remain available until September 30, 2010./


      /wildland fire management/

      / For an additional amount for `Wildland Fire Management',
      $15,000,000, to remain available until September 30, 2010./


      /United States Fish and Wildlife Service/


      /resource management/

      / For an additional amount for `Resource Management',
      $165,000,000, to remain available until September 30, 2010./


      /construction/

      / For an additional amount for `Construction', $110,000,000, to
      remain available until September 30, 2010./


      /National Park Service/


      /operation of the national park system/

      / For an additional amount for `Operation of the National Park
      System', $158,000,000, to remain available until September 30, 2010./


      /construction/

      / For an additional amount for `Construction', $589,000,000, to
      remain available until September 30, 2010./


      /United States Geological Survey/


      /surveys, investigations, and research/

      / For an additional amount for `Surveys, Investigations, and
      Research', $135,000,000, to remain available until September 30,
      2010./


      /Bureau of Indian Affairs/


      /operation of indian programs/

      / For an additional amount for `Operation of Indian Programs',
      $40,000,000, to remain available until September 30, 2010, of
      which $20,000,000 shall be for the housing improvement program./


      /construction/

      / For an additional amount for `Construction', $522,000,000, to
      remain available until September 30, 2010./


      /indian guaranteed loan program account/

      / For an additional amount for `Indian Guaranteed Loan Program
      Account', $10,000,000, to remain available until September 30, 2010./


      /DEPARTMENTAL OFFICES/


      /Insular Affairs/


      /assistance to territories/

      / For an additional amount for `Assistance to Territories',
      $62,000,000, to remain available until September 30, 2010./


      /Office of Inspector General/


      /salaries and expenses/

      / For an additional amount for `Office of Inspector General',
      $7,600,000, to remain available until September 30, 2011, and an
      additional $7,400,000 for such purposes, to remain available until
      September 30, 2011./


      /Department-Wide Programs/


      /central hazardous materials fund/

      / For an additional amount for `Central Hazardous Materials Fund',
      $20,000,000, to remain available until September 30, 2010./


      /ENVIROMENTAL PROTECTION AGENCY/


      /Hazardous Substance Superfund/


      /(including transfers of funds)/

      / For an additional amount for `Hazardous Substance Superfund',
      $600,000,000, to remain available until September 30, 2010, as a
      payment from general revenues to the Hazardous Substance
      Superfund, to carry out remedial actions: /Provided,/ That the
      Administrator may retain up to 2 percent of the funds appropriated
      herein for Superfund remedial actions for program oversight and
      support purposes, and may transfer those funds to other accounts
      as needed./


      /Leaking Underground Storage Tank Trust Fund Program/

      / For an additional amount for `Leaking Underground Storage Tank
      Trust Fund Program', $200,000,0000, to remain available until
      September 30, 2010, for cleanup activities: /Provided,/ That none
      of these funds shall be subject to cost share requirements./


      /State and Tribal Assistance Grants/


      /(including transfers of funds)/

      / For an additional amount for `State and Tribal Assistance
      Grants', $6,400,000,000, to remain available until September 30,
      2010, of which $4,000,000,000 shall be for making capitalization
      grants for the Clean Water State Revolving Funds under title VI of
      the Federal Water Pollution Control Act, as amended; of which
      $2,000,000,000 shall be for making capitalization grants for the
      Drinking Water State Revolving Fund under section 1452 of the Safe
      Drinking Water Act, as amended; of which $100,000,000 shall be
      available for Brownfields remediation grants pursuant to section
      104(k)(3) of the Comprehensive Environmental Response,
      Compensation and Liability Act of 1980, as amended; and of which
      $300,000,000 shall be for Diesel Emission Reduction Act grants
      pursuant to title VII, subtitle G of the Energy Policy Act of
      2005, as amended: /Provided,/ That notwithstanding the priority
      ranking they would otherwise receive under each program, priority
      for funds appropriated herein for the Clean Water State Revolving
      Funds and Drinking Water State Revolving Funds (Revolving Funds)
      shall be allocated to projects that are ready to proceed to
      construction within 180 days of enactment of this Act: /Provided
      further,/ That the Administrator of the Environmental Protection
      Agency (Administrator) may reallocate funds appropriated herein
      for the Revolving Funds that are not under binding commitments to
      proceed to construction within 180 days of enactment of this Act:
      /Provided further,/ That notwithstanding any other provision of
      law, financial assistance provided from funds appropriated herein
      for the Revolving Funds may include additional subsidization,
      including forgiveness of principal and negative interest loans:
      /Provided further,/ That not less than 15 percent of the funds
      appropriated herein for the Revolving Funds shall be designated
      for green infrastructure, water efficiency improvements or other
      environmentally innovative projects: /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 the funds appropriated herein for the Clean
      Water State Revolving Funds may be reserved by the Administrator
      for tribal grants under section 518(c) of such Act: /Provided
      further,/ That section 1452(k) of the Safe Drinking Water Act
      shall not apply to amounts appropriated herein for the Drinking
      Water State Revolving Funds: /Provided further,/ That the
      Administrator may exceed the 30 percent limitation on State grants
      for funds appropriated herein for Diesel Emission Reduction Act
      grants if the Administrator determines such action will expedite
      allocation of funds: /Provided further,/ That none of the funds
      appropriated herein shall be subject to cost share requirements:
      /Provided further,/ That the Administrator may retain up to 0.25
      percent of the funds appropriated herein for the Clean Water State
      Revolving Funds and Drinking Water State Revolving Funds and up to
      1.5 percent of the funds appropriated herein for the Diesel
      Emission Reduction Act grants program for program oversight and
      support purposes and may transfer those funds to other accounts as
      needed./


      /DEPARTMENT OF AGRICULTURE/


      /Forest Service/


      /capital improvement and maintenance/

      / For an additional amount for `Capital Improvement and
      Maintenance', $650,000,000, to remain available until September
      30, 2010, which shall include remediation of abandoned mine sites
      and support costs necessary to carry out this work./


      /wildland fire management/

      / For an additional amount for `Wildland Fire Management',
      $485,000,000, to remain available until September 30, 2010, for
      hazardous fuels reduction and hazard mitigation activities in
      areas at high risk of catastrophic wildfire, of which $260,000,000
      is available for work on State and private lands using all the
      authorities available to the Forest Service: /Provided,/ That of
      the funds provided for State and private land fuels reduction
      activities, up to $50,000,000 may be used to make grants for the
      purpose of creating incentives for increased use of biomass from
      national forest lands./


      /DEPARTMENT OF HEALTH AND HUMAN SERVICES/


      /Indian Health Service/


      /indian health services/

      / For an additional amount for `Indian Health Services',
      $135,000,000, to remain available until September 30, 2010, of
      which $50,000,000 is for contract health services; and of which
      $85,000,000 is for health information technology: /Provided,/ That
      the amount made available for health information technology
      activities may be used for both telehealth services development
      and related infrastructure requirements that are typically funded
      through the `Indian Health Facilities' account: /Provided
      further,/ That notwithstanding any other provision of law, health
      information technology funds provided within this title shall be
      allocated at the discretion of the Director of the Indian Health
      Service./


      /indian health facilities/

      / For an additional amount for `Indian Health Facilities',
      $410,000,000, to remain available until September 30, 2010:
      /Provided,/ That for the purposes of this Act, spending caps
      included within the annual appropriation for `Indian Health
      Facilities' for the purchase of medical equipment shall not apply./


      /SMITHSONIAN INSTITUTION/


      /Facilities Capital/

      / For an additional amount for `Facilities Capital', $75,000,000,
      to remain available until September 30, 2010./


      /GENERAL PROVISIONS--THIS TITLE/

      / Sec. 701. (a) Within 30 days of enactment of this Act, each
      agency receiving funds under this title shall submit a general
      plan for the expenditure of such funds to the House and Senate
      Committees on Appropriations./

      / (b) Within 90 days of enactment of this Act, each agency
      receiving funds under this title shall submit to the Committees a
      report containing detailed project level information associated
      with the general plan submitted pursuant to subsection (a)./

      / Sec. 702. In carrying out the work for which funds in this title
      are being made available, the Secretary of the Interior and the
      Secretary of Agriculture may utilize the Public Lands Corps, Youth
      Conservation Corps, Job Corps and other related partnerships with
      Federal, State, local, tribal or non-profit groups that serve
      young adults./


      /TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND
      EDUCATION, AND RELATED AGENCIES/


      /DEPARTMENT OF LABOR/


      /Employment and Training Administration/


      /training and employment services/

      / For an additional amount for `Training and Employment Services'
      for activities authorized by the Workforce Investment Act of 1998
      (`WIA'), $3,250,000,000, which shall be available on the date of
      enactment of this Act, as follows:/

            / (1) $500,000,000 for adult employment and training
            activities, including supportive services and needs-related
            payments described in section 134(e)(2) and (3) of the WIA:
            /Provided,/ That a priority use of these funds shall be
            services to individuals described in 134(d)(4)(E) of the WIA;/

            / (2) $1,200,000,000 for grants to the States for youth
            activities, including summer employment for youth:
            /Provided,/ That no portion of such funds 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, funds available for youth activities shall be
            allotted as if the total amount available for youth
            activities in the fiscal year does not exceed
            $1,000,000,000: /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 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 youth
            activities provided with such funds;/

            / (3) $1,000,000,000 for grants to the States for dislocated
            worker employment and training activities;/

            / (4) $200,000,000 for national emergency grants;/

            / (5) $250,000,000 under the dislocated worker national
            reserve for a program of competitive grants for worker
            training in high growth and emerging industry sectors and
            assistance under 132(b)(2)(A) of the WIA: /Provided,/ That
            the Secretary of Labor shall give priority when awarding
            such grants to projects that prepare workers for careers in
            energy efficiency and renewable energy as described in
            section 171(e)(1)(B) of the WIA and for careers in the
            health care sector; and/

            / (6) $100,000,000 for YouthBuild activities as described in
            section 173A of the WIA: /Provided,/ That for program years
            2008 and 2009, the YouthBuild program may serve an
            individual who has dropped out of high school and
            re-enrolled in an alternative school, if that re-enrollment
            is part of a sequential service strategy:/

            / /Provided,/ That funds made available in this paragraph
            shall remain available through June 30, 2010: /Provided
            further,/ That a local board may award a contract to an
            institution of higher education if the local board
            determines that it would facilitate the training of multiple
            individuals in high-demand occupations, if such contract
            does not limit customer choice./


      /community service employment for older americans/

      / For an additional amount for `Community Service Employment for
      Older Americans' for carrying out title V of the Older Americans
      Act of 1965, $120,000,000, which shall be available on the date of
      enactment of this Act and shall remain available through June 30,
      2010: /Provided,/ That funds shall be allotted within 30 days of
      such enactment to current grantees in proportion to their
      allotment in program year 2008: /Provided further,/ That funds
      made available under this heading in this Act may, in accordance
      with section 517(c) of the Older Americans Act of 1965, be
      recaptured and reobligated./


      /state unemployment insurance and employment service operations/

      / For an additional amount for `State Unemployment Insurance and
      Employment Service Operations' for grants to States in accordance
      with section 6 of the Wagner-Peyser Act, $400,000,000, which may
      be expended from the Employment Security Administration account in
      the Unemployment Trust Fund: /Provided,/ That such funds shall be
      available on the date of enactment of this Act and remain
      available to the States through September 30, 2010: /Provided
      further,/ That $250,000,000 of such funds 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/


      /office of job corps/

      / For an additional amount for `Office of Job Corps' for
      construction, alteration and repairs of buildings and other
      facilities, $160,000,000, which shall remain available through
      June 30, 2010: /Provided,/ That the Secretary of Labor may
      transfer up to 15 percent of such funds to meet the operational
      needs of Job Corps Centers, which may include training for careers
      in the energy efficiency, renewable energy, and environmental
      protection industries: /Provided further,/ That not later than 90
      days after the date of enactment of this Act, the Secretary shall
      provide to the Committee on Appropriations of the House of
      Representatives and the Senate an operating plan describing the
      planned uses of funds available in this paragraph./


      /office of inspector general/

      / For an additional amount for the `Office of Inspector General',
      $3,000,000, which shall remain available through September 30,
      2011, for salaries and expenses necessary for oversight and audit
      of programs, grants, and projects funded in this Act and
      administered by the Department of Labor./


      /DEPARTMENT OF HEALTH AND HUMAN SERVICES/


      /Health Resources and Services Administration/


      /health resources and services/

      / For an additional amount for `Health Resources and Services',
      $1,958,000,000, which shall remain available through September 30,
      2010, of which $88,000,000 shall be for necessary expenses related
      to leasing and renovating a headquarters building for Public
      Health Service agencies and other components of the Department of
      Health and Human Services, including renovation and fit-out costs,
      and of which $1,870,000,000 shall be for grants for construction,
      renovation and equipment for health centers receiving operating
      grants under section 330 of the Public Health Service Act,
      notwithstanding the limitation in section 330(e)(3)./


      /Centers for Disease Control and Prevention/


      /disease control, research, and training/

      / For an additional amount for `Disease Control, Research, and
      Training' for acquisition of real property, equipment,
      construction, and renovation of facilities, including necessary
      repairs and improvements to leased laboratories, $412,000,000,
      which shall remain available through September 30, 2010:
      /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./


      /National Institutes of Health/


      /national center for research resources/

      / For an additional amount for `National Center for Research
      Resources', $300,000,000, which shall be available through
      September 30, 2010, for shared instrumentation and other capital
      research equipment./


      /office of the director/


      /(including transfer of funds)/

      / For an additional amount for `Office of the Director',
      $2,700,000,000, which shall be available through September 30,
      2010: /Provided,/ That $1,350,000,000 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)./

      / The additional amount available for `Office of the Director' in
      the previous sentence shall be increased by $6,500,000,000:
      /Provided/, That a total of $7,850,000,000 shall be transferred
      pursuant to such sentence: /Provided further/, That any amounts in
      this sentence shall be 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./


      /buildings and facilities/

      / For an additional amount for `Buildings and Facilities',
      $500,000,000, which shall be available through September 30, 2010,
      to fund high-priority repair, construction 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 clinical effectiveness
      research, which shall remain available through September 30, 2010:
      /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 clinical effectiveness research
      under section 301 and title IV of the Public Health Service Act:
      /Provided further,/ That funds transferred to the Office of the
      Director may 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:
      /Provided further,/ That this transfer authority is in addition to
      any other transfer authority available to the National Institutes
      of Health: /Provided further,/ That within the amount available in
      this paragraph for the Agency for Healthcare Research and Quality,
      not more than 1 percent shall be made available for additional
      full-time equivalents./

      / In addition, $400,000,000 shall be available for comparative
      clinical effectiveness research to be allocated at the discretion
      of the Secretary of Health and Human Services (`Secretary') and
      shall remain available through September 30, 2010: /Provided,/
      That the funding appropriated in this paragraph shall be used to
      accelerate the development and dissemination of research assessing
      the comparative clinical 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 clinical 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 Clinical
      Effectiveness Research established by section 802 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 clinical 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 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./


      /Administration for Children and Families/


      /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' for carrying out the Child Care
      and Development Block Grant Act of 1990, $2,000,000,000, which
      shall remain available through September 30, 2010: /Provided,/
      That funds provided under this heading shall be used to
      supplement, not supplant State general revenue funds for child
      care assistance for low-income families: /Provided further,/ That,
      in addition to the amounts required to be reserved by the States
      under section 658G of such Act, $255,186,000 shall be reserved by
      the States for activities authorized under section 658G, of which
      $93,587,000 shall be for activities that improve the quality of
      infant and toddler care./


      /social services block grant/

      / For an additional amount for `Social Services Block Grant,'
      $400,000,000: /Provided,/ That notwithstanding section 2003 of the
      Social Security Act, funds shall be allocated to States on the
      basis of unemployment: /Provided further,/ That these funds shall
      be obligated to States within 60 calendar days from the date they
      become available for obligation./


      /children and families services programs/

      / For an additional amount for `Children and Families Services
      Programs' for carrying out activities under the Head Start Act,
      $500,000,000, which shall remain available through September 30,
      2010. In addition, $550,000,000, which shall remain available
      through September 30, 2010, is hereby appropriated for expansion
      of Early Head Start programs, as described in section 645A of such
      Act: /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./

      / For an additional amount for `Children and Families Services
      Programs' for carrying out activities under sections 674 through
      679 of the Community Services Block Grant Act, $200,000,000, which
      shall remain available through September 30, 2010: /Provided,/
      That of the funds provided under this paragraph, no part shall be
      subject to paragraph (3) of section 674(b) of such Act: /Provided
      further,/ That not less than 5 percent of the funds allotted to a
      State from the appropriation under this paragraph shall be used
      under section 675C(b)(1) for benefits enrollment coordination
      activities relating to the identification and enrollment of
      eligible individuals and families in Federal, State and local
      benefit programs./


      /Administration on Aging/


      /aging services programs/

      / For an additional amount for `Aging Services Programs,'
      $100,000,000, of which $67,000,000 shall be for Congregate
      Nutrition Services and $33,000,000 shall be for Home-Delivered
      Nutrition Services: /Provided,/ That these funds shall remain
      available through September 30, 2010./


      /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', $3,000,000,000, to carry out
      title XIII of this Act which shall be available until expended:
      /Provided,/ That of this 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 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 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 under this heading is available for obligation or
      expenditure./


      /office of the inspector general/

      / For an additional amount for the Office of the Inspector
      General, $4,000,000 which shall remain available until September
      30, 2012, and an additional $15,000,000 for such purposes, to
      remain available until September 30, 2012./


      /DEPARTMENT OF EDUCATION/


      /Education for the Disadvantaged/

      / For an additional amount for carrying out title I of the
      Elementary and Secondary Education Act of 1965, $12,400,000,000,
      which shall be available through September 30, 2010: /Provided,/
      That $5,500,000,000 shall be for targeted grants under section
      1125, $5,500,000,000 shall be for education finance incentive
      grants under section 1125A, and $1,400,000,000 shall be for school
      improvement grants under section 1003(g): /Provided further/, That
      each local educational agency receiving funds available under this
      paragraph for sections 1125 and 1125A shall use not less than 15
      percent of such funds for activities serving children who are
      eligible pursuant to section 1115(b)(1)(A)(ii) and programs in
      section 1112(b)(1)(K): /Provided further/, That each local
      educational agency receiving funds available under this paragraph
      shall be required to file with the State educational agency, no
      later than December 1, 2009, a school-by-school listing of
      per-pupil educational expenditures from State and local sources
      during the 2008-2009 academic year./


      /School Improvement Programs/

      / For an additional amount for `School Improvement Programs,'
      $1,070,000,000, which shall be available through September 30,
      2010, for carrying out activities authorized by part D of title II
      of the Elementary and Secondary Education Act of 1965, and
      subtitle B of title VII of the McKinney-Vento Homeless Assistance
      Act (`McKinney-Vento'): /Provided,/ That the Secretary shall allot
      $70,000,000 for grants under McKinney-Vento to each State in
      proportion to the number of homeless students identified by the
      State during the 2007-2008 school year relative to the number of
      such children identified nationally during that school year:
      /Provided further,/ That State educational agencies shall subgrant
      the McKinney-Vento funds to local educational agencies on a
      competitive basis or according to a formula based on the number of
      homeless students identified by the local educational agencies in
      the State: /Provided further,/ That the Secretary shall distribute
      the McKinney-Vento funds to the States not later than 60 days
      after the date of the enactment of this Act: /Provided further,/
      That each State shall subgrant the McKinney-Vento funds to local
      educational agencies not later than 120 days after receiving its
      grant from the Secretary./


      /special education/

      / For an additional amount for `Special Education' for carrying
      out parts B and C of the Individuals with Disabilities Education
      Act (`IDEA'), $13,500,000,000, which shall remain available
      through September 30, 2010: /Provided,/ 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 by July 1, 2009,
      the Secretary of Education shall reserve the amount needed for
      grants under section 643(e) of the IDEA, with any remaining funds
      to be allocated in accordance with section 643(c) of the IDEA:
      /Provided further,/ That the amount for section 611(b)(2) of the
      IDEA shall be equal to the lesser of the amount available for that
      activity during fiscal year 2008, increased by the amount of
      inflation as specified in section 619(d)(2)(B), or the percentage
      increase in the funds appropriated under section 611(i): /Provided
      further/, That each local educational agency receiving funds
      available under this paragraph for part B shall use not less than
      15 percent for special education and related services to children
      described in section 619(a) of the IDEA./


      /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, $610,000,000, which shall
      remain available through September 30, 2010: /Provided,/ That
      $500,000,000 shall be available for part B of title I of the
      Rehabilitation Act: /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./


      /Student Financial Assistance/

      / For an additional amount for `Student Financial Assistance' to
      carry out subpart 1 of part A of title IV of the Higher Education
      Act of 1965, $13,869,000,000: /Provided,/ That such funds shall be
      used to increase the maximum Pell Grant by $281 for award year
      2009-2010, to increase the maximum Pell Grant by $400 for the
      award year 2010-2011, and to reduce or eliminate the Pell Grant
      shortfall: /Provided further,/ That these funds shall remain
      available through September 30, 2011./

      / For an additional amount for `Student Financial Assistance' to
      carry out part E of title IV of the Higher Education Act of 1965,
      $61,000,000: /Provided,/ That these funds shall remain available
      through September 30, 2010./


      /Higher Education/

      / For an additional amount for `Higher Education' for carrying out
      activities under part A of title II of the Higher Education Act of
      1965, $50,000,000: /Provided,/ That these funds shall remain
      available through September 30, 2010./


      /Departmental Management/


      /office of the inspector general/

      / For an additional amount for the `Office of the Inspector
      General', $4,000,000, which shall remain available through
      September 30, 2012, for salaries and expenses necessary for
      oversight and audit of programs, grants, and projects funded in
      this Act and administered by the Department of Education and an
      additional $10,000,000 for such purposes, to remain available
      until September 30, 2012./


      /RELATED AGENCIES/


      /CORPORATION FOR NATIONAL AND COMMUNITY SERVICE/


      /Operating Expenses/


      /(including transfer of funds)/

      / For an additional amount for `Operating Expenses' to carry out
      the Domestic Volunteer Service Act of 1973 (`1973 Act') and the
      National and Community Service Act of 1990 (`1990 Act'),
      $160,000,000, to remain available through September 30, 2010:
      /Provided,/ That funds made available in this paragraph may be
      used to provide adjustments to awards under subtitle C of title I
      of the 1990 Act made prior to September 30, 2010 for which the
      Chief Executive Officer of the Corporation for National and
      Community Service (`CEO') determines that a waiver of the Federal
      share limitation is warranted under section 2521.70 of title 45 of
      the Code of Federal Regulations: /Provided further,/ That of the
      amount made available in this paragraph, not less than $6,000,000
      shall be transferred to `Salaries and Expenses' for necessary
      expenses relating to information technology upgrades: /Provided
      further,/ That of the amount provided in this paragraph,
      $10,000,000 shall be available for additional members in the
      Civilian Community Corps authorized under subtitle E of title I of
      the 1990 Act: /Provided further,/ That of the amount provided in
      this paragraph, $1,000,000 shall be made available for a one-time
      supplement grant to State commissions on national and community
      service under section 126(a) of the 1990 Act without regard to the
      limitation on Federal share under section 126(a)(2) of the 1990
      Act: /Provided further,/ That of the amount made available in this
      paragraph, not less than $13,000,000 shall be for research
      activities authorized under subtitle H of title I of the 1990 Act:
      /Provided further,/ That of the amount made available in this
      paragraph, not less than $65,000,000 shall be for programs under
      title I, part A of the 1973 Act: /Provided further,/ That funds
      provided in the previous proviso shall not be made available in
      connection with cost-share agreements authorized under section
      192A(g)(10) of the 1990 Act: /Provided further/, That of the funds
      available under this heading, up to 20 percent of funds allocated
      to grants authorized under section 124(b) of title I, subtitle C
      of the 1990 Act may be used to administer, reimburse, or support
      any national service program under section 129(d)(2) of the 1990
      Act: /Provided further,/ That, except as provided herein and in
      addition to requirements identified herein, funds provided in this
      paragraph shall be subject to the terms and conditions under which
      funds were appropriated in fiscal year 2008: /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 in this paragraph 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 members
      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./


      /Office of the Inspector General/

      / For an additional amount for the Office of the Inspector
      General, $1,000,000, which shall remain available until September
      30, 2011./


      /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 title I 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,/ 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', $890,000,000 shall be available as follows:/

            / (1) $750,000,000 shall remain available until expended for
            necessary expenses of the replacement of the National
            Computer Center and the information technology costs
            associated with such Center: /Provided,/ That the
            Commissioner of Social Security shall notify the Committees
            on Appropriations of the House of Representatives and the
            Senate not later than 10 days prior to each public notice
            soliciting bids related to site selection and construction:
            /Provided further,/ That unobligated balances of funds not
            needed for this purpose may be used as described in
            subparagraph (2); and/

            / (2) $140,000,000 shall be available through September 30,
            2010 for information technology acquisitions and research,
            which may include research and activities to facilitate the
            adoption of electronic medical records in disability claims
            and the transfer of funds to `Supplemental Security Income'
            to carry out activities under section 1110 of the Social
            Security Act: /Provided further,/ That not later than 10
            days prior to the obligation of such funds, the Commissioner
            shall provide to the Committees on Appropriations of the
            House of Representatives and the Senate an operating plan
            describing the planned uses of such funds./


      /Office of Inspector General/

      / For an additional amount for the `Office of Inspector General',
      $3,000,000, which shall remain available through September 30,
      2012, for salaries and expenses necessary for oversight and audit
      of programs, projects, and activities funded in this Act and
      administered by the Social Security Administration./


      /GENERAL PROVISIONS--THIS TITLE/

      / Sec. 801. Report on the Impact of Past and Future Minimum Wage
      Increases. (a) In General- Section 8104 of the U.S. Troop
      Readiness, Veterans' Care, Katrina Recovery, and Iraq
      Accountability Appropriations Act, 2007 (Public Law 110-28; 121
      Stat. 189) is amended to read as follows:/


      /`SEC. 8104. REPORT ON THE IMPACT OF PAST AND FUTURE MINIMUM WAGE
      INCREASES./

      / `(a) Study- Beginning on the date that is 60 days after the date
      of enactment of this Act, and every year thereafter until the
      minimum wage in the respective territory is $7.25 per hour, the
      Government Accountability Office shall conduct a study to--/

            / `(1) assess the impact of the minimum wage increases that
            occurred in American Samoa and the Commonwealth of the
            Northern Mariana Islands in 2007 and 2008, as required under
            Public Law 110-28, on the rates of employment and the living
            standards of workers, with full consideration of the other
            factors that impact rates of employment and the living
            standards of workers such as inflation in the cost of food,
            energy, and other commodities; and/

            / `(2) estimate the impact of any further wage increases on
            rates of employment and the living standards of workers in
            American Samoa and the Commonwealth of the Northern Mariana
            Islands, with full consideration of the other factors that
            may impact the rates of employment and the living standards
            of workers, including assessing how the profitability of
            major private sector firms may be impacted by wage increases
            in comparison to other factors such as energy costs and the
            value of tax benefits./

      / `(b) Report- No earlier than March 15, 2009, and not later than
      April 15, 2009, the Government Accountability Office shall
      transmit its first report to Congress concerning the findings of
      the study required under subsection (a). The Government
      Accountability Office shall transmit any subsequent reports to
      Congress concerning the findings of a study required by subsection
      (a) between March 15 and April 15 of each year./

      / `(c) Economic Information- To provide sufficient economic data
      for the conduct of the study under subsection (a)--/

            / `(1) the Department of Labor shall include and separately
            report on American Samoa and the Commonwealth of the
            Northern Mariana Islands in its household surveys and
            establishment surveys;/

            / `(2) the Bureau of Economic Analysis of the Department of
            Commerce shall include and separately report on American
            Samoa and the Commonwealth of the Northern Mariana Islands
            in its gross domestic product data; and/

            / `(3) the Bureau of the Census of the Department of
            Commerce shall include and separately report on American
            Samoa and the Commonwealth of the Northern Mariana Islands
            in its population estimates and demographic profiles from
            the American Community Survey,/

      /with the same regularity and to the same extent as the Department
      or each Bureau collects and reports such data for the 50 States.
      In the event that the inclusion of American Samoa and the
      Commonwealth of the Northern Mariana Islands in such surveys and
      data compilations requires time to structure and implement, the
      Department of Labor, the Bureau of Economic Analysis, and the
      Bureau of the Census (as the case may be) shall in the interim
      annually report the best available data that can feasibly be
      secured with respect to such territories. Such interim reports
      shall describe the steps the Department or the respective Bureau
      will take to improve future data collection in the territories to
      achieve comparability with the data collected in the United
      States. The Department of Labor, the Bureau of Economic Analysis,
      and the Bureau of the Census, together with the Department of the
      Interior, shall coordinate their efforts to achieve such
      improvements.'./

      / (b) Effective Date- The amendment made by this section shall
      take effect on the date of enactment of this Act./

      / Sec. 802. Federal Coordinating Council for Comparative Clinical
      Effectiveness Research. (a) Establishment- There is hereby
      established a Federal Coordinating Council for Comparative
      Clinical 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 clinical effectiveness and related
            health services research; and/

            / (2) advise the President and Congress on--/

                  / (A) strategies with respect to the infrastructure
                  needs of comparative clinical effectiveness research
                  within the Federal Government;/

                  / (B) appropriate organizational expenditures for
                  comparative clinical effectiveness research by
                  relevant Federal departments and agencies; and/

                  / (C) opportunities to assure optimum coordination of
                  comparative clinical 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 clinical effectiveness research and
            recommendations for additional investments in such research
            conducted or supported from funds made available for
            allotment by the Secretary for comparative clinical
            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
            clinical effectiveness research by relevant Federal
            departments and agencies./

      / (e) Staffing; Support- From funds made available for allotment
      by the Secretary for comparative clinical effectiveness research
      in this Act, the Secretary shall make available not more than 1
      percent to the Council for staff and administrative support./


      /(transfer of funds)/

      / Sec. 803. (a) Not more than 1 percent of the funds made
      available to the Department of Labor in this title may be
      transferred by the Secretary of Labor to `Employment and Training
      Administration--Program Administration', `Employment Standards
      Administration--Salaries and Expenses', `Occupational Safety and
      Health Administration--Salaries and Expenses' and `Departmental
      Management--Salaries and Expenses' for expenses necessary to
      administer and coordinate funds made available to the Department
      of Labor in this title; oversee and evaluate the use of such
      funds; and enforce applicable laws and regulations governing
      worker rights and protections associated with the funds made
      available in this Act./

      / (b) Not later than 10 days prior to obligating any funds
      proposed to be transferred under subsection (a), the Secretary
      shall provide to the Committees on Appropriations of the House of
      Representatives and the Senate an operating plan describing the
      planned uses of each amount proposed to be transferred./

      / (c) Funds transferred under this section may be available for
      obligation through September 30, 2010./

      / Sec. 804. 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;'./


      /TITLE IX--LEGISLATIVE BRANCH/


      /GOVERNMENT ACCOUNTABILITY OFFICE/


      /Salaries and Expenses/

      / For an additional amount for `Salaries and Expenses' of the
      Government Accountability Office, $20,000,000, to remain available
      until September 30, 2010./


      /GENERAL PROVISIONS--THIS TITLE/

      / Sec. 901. Government Accountability Office Reviews and Reports.
      (a) Reviews and Reports- /

            / (1) IN GENERAL- The Comptroller General shall conduct
            bimonthly reviews and prepare reports on such reviews on the
            use by selected State 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 established under
            this Act by the Recovery Accountability and Transparency Board./

            / (2) REDACTIONS- Any portion of a report or audit under
            this subsection may be redacted when made publicly
            available, if that portion would disclose information that
            is not subject to disclosure under section 552 of title 5,
            United States Code (commonly known as the Freedom of
            Information Act)./

      / (b) Examination of Records- The Comptroller General may examine
      any records related to obligations of funds made available in this
      Act./

      / Sec. 902. Access of Government Accountability Office. Each
      contract awarded using funds made available in this Act shall
      provide that the Comptroller General and his representatives 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./


      /TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS, AND RELATED
      AGENCIES/


      /DEPARTMENT OF DEFENSE/


      /Military Construction, Army/

      / For an additional amount for `Military Construction, Army',
      $637,875,000, to remain available until September 30, 2013, of
      which $84,100,000 shall be for child development centers;
      $481,000,000 shall be for warrior transition complexes; and
      $42,400,000 shall be for health and dental clinics (including
      acquisition, construction, installation, and equipment):
      /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 funds
      provided under this heading, not to exceed $30,375,000 shall be
      available for study, planning, design, and architect and engineer
      services: /Provided further,/ That within 30 days of enactment of
      this Act the Secretary of the Army shall submit to the Committees
      on Appropriations of both Houses of Congress an expenditure plan
      for funds provided under this heading prior to obligation./


      /Military Construction, Navy and Marine Corps/

      / For an additional amount for `Military Construction, Navy and
      Marine Corps', $990,092,000, to remain available until September
      30, 2013, of which $172,820,000 shall be for child development
      centers; $174,304,000 shall be for barracks; $125,000,000 shall be
      for health clinic replacement, and $494,362,000 shall be for
      energy conservation and alternative energy projects (including
      acquisition, construction, installation, and equipment):
      /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 funds
      provided under this heading, not to exceed $23,606,000 shall be
      available for study, planning, design, and architect and engineer
      services: /Provided further,/ That within 30 days of enactment of
      this Act the Secretary of the Navy shall submit to the Committees
      on Appropriations of both Houses of Congress an expenditure plan
      for funds provided under this heading prior to obligation./


      /Military Construction, Air Force/

      / For an additional amount for `Military Construction, Air Force',
      $871,332,000, to remain available until September 30, 2013, of
      which $80,100,000 shall be for child development centers;
      $612,246,000 shall be for dormitories; and $138,100,000 shall be
      for health clinics (including acquisition, construction,
      installation, and equipment): /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 funds provided under this heading,
      not to exceed $40,886,000 shall be available for study, planning,
      design, and architect and engineer services: /Provided further,/
      That within 30 days of enactment of this Act the Secretary of the
      Air Force shall submit to the Committees on Appropriations of both
      Houses of Congress an expenditure plan for funds provided under
      this heading prior to obligation./


      /Military Construction, Defense-Wide/

      / For an additional amount for `Military Construction,
      Defense-Wide', $118,560,000 for the Energy Conservation Investment
      Program, to remain available until September 30, 2010: /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 within 30 days of
      enactment of this Act the Secretary of Defense shall submit to the
      Committees on Appropriations of both Houses of Congress an
      expenditure plan for funds provided under this heading prior to
      obligation./


      /Military Construction, Army National Guard/

      / For an additional amount for `Military Construction, Army
      National Guard', $150,000,000 for readiness centers (including
      construction, acquisition, expansion, rehabilitation, and
      conversion), to remain available until September 30, 2013:
      /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 within 30
      days of enactment of this Act the Director of the Army National
      Guard shall submit to the Committees on Appropriations of both
      Houses of Congress an expenditure plan for funds provided under
      this heading prior to obligation./


      /Military Construction, Air National Guard/

      / For an additional amount for `Military Construction, Air
      National Guard', $110,000,000, to remain available until September
      30, 2013: /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 within 30 days of enactment of this Act the Director of the
      Air National Guard shall submit to the Committees on
      Appropriations of both Houses of Congress an expenditure plan for
      funds provided under this heading prior to obligation./


      /Family Housing Construction, Army/

      / For an additional amount for `Family Housing Construction,
      Army', $34,570,000, to remain available until September 30, 2013:
      /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 within 30
      days of enactment of this Act the Secretary of the Army shall
      submit to the Committees on Appropriations of both Houses of
      Congress an expenditure plan for funds provided under this heading
      prior to obligation./


      /Family Housing Operation and Maintenance, Army/

      / For an additional amount for `Family Housing Operation and
      Maintenance, Army', $3,932,000: /Provided,/ That notwithstanding
      any other provision of law, such funds may be obligated and
      expended for operation and maintenance and minor construction
      projects in the United States not otherwise authorized by law./


      /Family Housing Construction, Air Force/

      / For an additional amount for `Family Housing Construction, Air
      Force', $80,100,000, to remain available until September 30, 2013:
      /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 within 30
      days of enactment of this Act the Secretary of the Air Force shall
      submit to the Committees on Appropriations of both Houses of
      Congress an expenditure plan for funds provided under this heading
      prior to obligation./


      /Family Housing Operation and Maintenance, Air Force/

      / For an additional amount for `Family Housing Operation and
      Maintenance, Air Force', $16,461,000: /Provided,/ That
      notwithstanding any other provision of law, such funds may be
      obligated and expended for operation and maintenance and minor
      construction projects in the United States not otherwise
      authorized by law./


      /Homeowners Assistance Fund/

      / For an additional amount for `Homeowners Assistance Fund',
      established by section 1013 of the Demonstration Cities and
      Metropolitan Development Act of 1966, as amended (42 U.S.C. 3374),
      $410,973,000, to remain available until expended./


      /Administrative Provision/

      / Sec. 1001. (a) Temporary Expansion of Homeowners Assistance Plan
      To Respond to Mortgage Foreclosure and Credit Crisis. Section 1013
      of the Demonstration Cities and Metropolitan Development Act of
      1966 (42 U.S.C. 3374) is amended--/

            / (1) in subsection (a)--/

                  / (A) by redesignating paragraphs (1), (2), and (3) as
                  clauses (i), (ii), and (iii), respectively, and
                  indenting such subparagraphs, as so redesignated, 6
                  ems from the left margin;/

                  / (B) by striking `Notwithstanding any other provision
                  of law' and inserting the following:/

            / `(1) ACQUISITION OF PROPERTY AT OR NEAR MILITARY
            INSTALLATIONS THAT HAVE BEEN ORDERED TO BE CLOSED-
            Notwithstanding any other provision of law';/

                  / (C) by striking `if he determines' and inserting `if--/

                  / `(A) the Secretary determines--';/

                  / (D) in clause (iii), as redesignated by subparagraph
                  (A), by striking the period at the end and inserting
                  `; or'; and/

                  / (E) by adding at the end the following:/

                  / `(B) the Secretary determines--/

                        / `(i) that the conditions in clauses (i) and
                        (ii) of subparagraph (A) have been met;/

                        / `(ii) that the closing or realignment of the
                        base or installation resulted from a realignment
                        or closure carried out under the 2005 round of
                        defense base closure and realignment under the
                        Defense Base Closure and Realignment Act of 1990
                        (part XXIX of Public Law 101-510; 10 U.S.C. 2687
                        note);/

                        / `(iii) that the property was purchased by the
                        owner before July 1, 2006;/

                        / `(iv) that the property was sold by the owner
                        between July 1, 2006, and September 30, 2012, or
                        an earlier end date designated by the Secretary;/

                        / `(v) that the property is the primary
                        residence of the owner; and/

                        / `(vi) that the owner has not previously
                        received benefit payments authorized under this
                        subsection./

            / `(2) HOMEOWNER ASSISTANCE FOR WOUNDED MEMBERS OF THE ARMED
            FORCES, DEPARTMENT OF DEFENSE AND UNITED STATES COAST GUARD
            CIVILIAN EMPLOYEES, AND THEIR SPOUSES- Notwithstanding any
            other provision of law, the Secretary of Defense is
            authorized to acquire title to, hold, manage, and dispose
            of, or, in lieu thereof, to reimburse for certain losses
            upon private sale of, or foreclosure against, any property
            improved with a one- or two-family dwelling which was at the
            time of the relevant wound, injury, or illness, the primary
            residence of--/

                  / `(A) any member of the Armed Forces in medical
                  transition who--/

                        / `(i) incurred a wound, injury, or illness in
                        the line of duty during a deployment in support
                        of the Armed Forces;/

                        / `(ii) is disabled to a degree of 30 percent or
                        more as a result of such wound, injury, or
                        illness, as determined by the Secretary of
                        Defense or the Secretary of Veterans Affairs; and/

                        / `(iii) is reassigned in furtherance of medical
                        treatment or rehabilitation, or due to medical
                        retirement in connection with such disability;/

                  / `(B) any civilian employee of the Department of
                  Defense or the United States Coast Guard who--/

                        / `(i) was wounded, injured, or became ill in
                        the line of duty during a forward deployment in
                        support of the Armed Forces; and/

                        / `(ii) is reassigned in furtherance of medical
                        treatment, rehabilitation, or due to medical
                        retirement resulting from the sustained
                        disability; or/

                  / `(C) the spouse of a member of the Armed Forces or a
                  civilian employee of the Department of Defense or the
                  United States Coast Guard if--/

                        / `(i) the member or employee was killed in the
                        line of duty during a deployment in support of
                        the Armed Forces or died from a wound, injury,
                        or illness incurred in the line of duty during
                        such a deployment; and/

                        / `(ii) the spouse relocates from such residence
                        within 2 years after the death of such member or
                        employee./

            / `(3) TEMPORARY HOMEOWNER ASSISTANCE FOR MEMBERS OF THE
            ARMED FORCES PERMANENTLY REASSIGNED DURING SPECIFIED
            MORTGAGE CRISIS- Notwithstanding any other provision of law,
            the Secretary of Defense is authorized to acquire title to,
            hold, manage, and dispose of, or, in lieu thereof, to
            reimburse for certain losses upon private sale of, or
            foreclosure against, any property improved with a one- or
            two-family dwelling situated at or near a military base or
            installation, if the Secretary determines--/

                  / `(A) that the owner is a member of the Armed Forces
                  serving on permanent assignment;/

                  / `(B) that the owner is permanently reassigned by
                  order of the United States Government to a duty
                  station or home port outside a 50-mile radius of the
                  base or installation;/

                  / `(C) that the reassignment was ordered between
                  February 1, 2006, and September 30, 2012, or an
                  earlier end date designated by the Secretary;/

                  / `(D) that the property was purchased by the owner
                  before July 1, 2006;/

                  / `(E) that the property was sold by the owner between
                  July 1, 2006, and September 30, 2012, or an earlier
                  end date designated by the Secretary;/

                  / `(F) that the property is the primary residence of
                  the owner; and/

                  / `(G) that the owner has not previously received
                  benefit payments authorized under this subsection.';/

            / (2) in subsection (b), by striking `this section' each
            place it appears and inserting `subsection (a)(1)';/

            / (3) in subsection (c)--/

                  / (A) by striking `Such persons' and inserting the
                  following:/

            / `(1) HOMEOWNER ASSISTANCE RELATED TO CLOSED MILITARY
            INSTALLATIONS- /

                  / `(A) IN GENERAL- Such persons';/

                  / (B) by striking `set forth above shall elect either
                  (1) to receive' and inserting the following: `set
                  forth in subsection (a)(1) shall elect either--/

                        / `(i) to receive';/

                  / (C) by striking `difference between (A) 95 per
                  centum' and all that follows through `(B) the fair
                  market value' and inserting the following: `difference
                  between--/

                              / `(I) 95 per centum of the fair market
                              value of their property (as such value is
                              determined by the Secretary of Defense)
                              prior to public announcement of intention
                              to close all or part of the military base
                              or installation; and/

                              / `(II) the fair market value';/

                  / (D) by striking `time of the sale, or (2) to
                  receive' and inserting the following: `time of the
                  sale; or/

                        / `(ii) to receive';/

                  / (E) by striking `outstanding mortgages. The
                  Secretary may also pay a person who elects to receive
                  a cash payment under clause (1) of the preceding
                  sentence an amount' and inserting `outstanding mortgages./

                  / `(B) REIMBURSEMENT OF EXPENSES- The Secretary may
                  also pay a person who elects to receive a cash payment
                  under subparagraph (A) an amount'; and/

                  / (F) by striking `best interest of the Federal
                  Government. Cash payment' and inserting the following:
                  `best interest of the United States./

            / `(2) HOMEOWNER ASSISTANCE FOR WOUNDED INDIVIDUALS AND
            THEIR SPOUSES- /

                  / `(A) IN GENERAL- Persons eligible under the criteria
                  set forth in subsection (a)(2) may elect either--/

                        / `(i) to receive a cash payment as compensation
                        for losses which may be or have been sustained
                        in a private sale, in an amount not to exceed
                        the difference between--/

                              / `(I) 95 per centum of prior fair market
                              value of their property (as such value is
                              determined by the Secretary of Defense); and/

                              / `(II) the fair market value of such
                              property (as such value is so determined)
                              at the time of the wound, injury, or
                              illness qualifying the individual for
                              benefits under subsection (a)(2); or/

                        / `(ii) to receive, as purchase price for their
                        property an amount not to exceed 90 per centum
                        of prior fair market value as such value is
                        determined by the Secretary of Defense, or the
                        amount of the outstanding mortgages./

                  / `(B) DETERMINATION OF BENEFITS- The Secretary may
                  also pay a person who elects to receive a cash payment
                  under subparagraph (A) an amount that the Secretary
                  determines appropriate to reimburse the person for the
                  costs incurred by the person in the sale of the
                  property if the Secretary determines that such payment
                  will benefit the person and is in the best interest of
                  the United States./

            / `(3) HOMEOWNER ASSISTANCE FOR PERMANENTLY REASSIGNED
            INDIVIDUALS- /

                  / `(A) IN GENERAL- Persons eligible under the criteria
                  set forth in subsection (a)(3) may elect either--/

                        / `(i) to receive a cash payment as compensation
                        for losses which may be or have been sustained
                        in a private sale, in an amount not to exceed
                        the difference between--/

                              / `(I) 95 per centum of prior fair market
                              value of their property (as such value is
                              determined by the Secretary of Defense); and/

                              / `(II) the fair market value of such
                              property (as such value is so determined)
                              at the time the person received change of
                              permanent station orders; or/

                        / `(ii) to receive, as purchase price for their
                        property an amount not to exceed 90 per centum
                        of prior fair market value as such value is
                        determined by the Secretary of Defense, or the
                        amount of the outstanding mortgages./

                  / `(B) DETERMINATION OF BENEFITS- The Secretary may
                  also pay a person who elects to receive a cash payment
                  under subparagraph (A) an amount that the Secretary
                  determines appropriate to reimburse the person for the
                  costs incurred by the person in the sale of the
                  property if the Secretary determines that such payment
                  will benefit the person and is in the best interest of
                  the United States./

            / `(4) COMPENSATION AND LIMITATIONS RELATED TO FORECLOSURES
            AND ENCUMBRANCES- Cash payment';/

            / (4) by striking subsection (g);/

            / (5) in subsection (l), by striking `(a)(2)' and inserting
            `(a)(1)(A)(ii)';/

            / (6) in subsection (m), by striking `this section' and
            inserting `subsection (a)(1)';/

            / (7) in subsection (n)--/

                  / (A) in paragraph (1), by striking `this section' and
                  inserting `subsection (a)(1)'; and/

                  / (B) in paragraph (2), by striking `this section' and
                  inserting `subsection (a)(1)';/

            / (8) in subsection (o)--/

                  / (A) in paragraph (1), by striking `this section' and
                  inserting `subsection (a)(1)';/

                  / (B) in paragraph (2), by striking `this section' and
                  inserting `subsection (a)(1)'; and/

                  / (C) by striking paragraph (4); and/

            / (9) by adding at the end the following new subsection:/

      / `(p) Definitions- In this section:/

            / `(1) the term `Armed Forces' has the meaning given the
            term `armed forces' in section 101(a) of title 10, United
            States Code;/

            / `(2) the term `civilian employee' has the meaning given
            the term `employee' in section 2105(a) of title 5, United
            States Code;/

            / `(3) the term `medical transition', in the case of a
            member of the Armed Forces, means a member who--/

                  / `(A) is in Medical Holdover status;/

                  / `(B) is in Active Duty Medical Extension status;/

                  / `(C) is in Medical Hold status;/

                  / `(D) is in a status pending an evaluation by a
                  medical evaluation board;/

                  / `(E) has a complex medical need requiring six or
                  more months of medical treatment; or/

                  / `(F) is assigned or attached to an Army Warrior
                  Transition Unit, an Air Force Patient Squadron, a Navy
                  Patient Multidisciplinary Care Team, or a Marine
                  Patient Affairs Team/Wounded Warrior Regiment; and/

            / `(4) the term `nonappropriated fund instrumentality
            employee' means a civilian employee who--/

                  / `(A) is a citizen of the United States; and/

                  / `(B) is paid from nonappropriated funds of Army and
                  Air Force Exchange Service, Navy Resale and Services
                  Support Office, Marine Corps exchanges, or any other
                  instrumentality of the United States under the
                  jurisdiction of the Armed Forces which is conducted
                  for the comfort, pleasure, contentment, or physical or
                  mental improvement of members of the Armed Forces.'./

      / (b) Clerical Amendment- Such section is further amended in the
      section heading by inserting `and certain property owned by
      members of the armed forces, department of defense and united
      states coast guard civilian employees, and surviving spouses'
      after `ordered to be closed'./

      / (c) Authority to Use Appropriated Funds- Notwithstanding
      subsection (i) of such section, amounts appropriated or otherwise
      made available by this title under the heading `Homeowners
      Assistance Fund' may be used for the Homeowners Assistance Fund
      established under such section./


      /DEPARTMENT OF VETERANS AFFAIRS/


      /Veterans Health Administration/


      /medical support and compliance/

      / For an additional amount for `Medical Support and Compliance',
      $5,000,000, to remain available until September 30, 2010, to
      support contract administration and energy initiative execution at
      the Veterans Health Administration./


      /medical facilities/

      / For an additional amount for `Medical Facilities',
      $1,370,459,000, to remain available until September 30, 2010, of
      which $1,047,313,000 shall be for facility condition assessment
      deficiencies and non-recurring maintenance at existing medical
      facilities; and $323,146,000 shall be for energy efficiency
      initiatives./


      /national cemetery administration/

      / For an additional amount for `National Cemetery Administration',
      $64,961,000, to remain available until September 30, 2010, of
      which $59,476,000 shall be for capital infrastructure and memorial
      and monument repairs; and $5,485,000 shall be for energy
      efficiency initiatives./


      /Departmental Administration/


      /general operating expenses/

      / For an additional amount for `General Operating Expenses',
      $1,125,000, to remain available until September 30, 2010, for
      additional Full Time Equivalent salary and expenses for major
      construction project administration and execution and energy
      initiative execution./


      /information technology systems/

      / For an additional amount for `Information Technology Systems',
      $195,000,000, to remain available until September 30, 2010, of
      which $145,000,000 shall be for the Veterans Benefits
      Administration's development of paperless claims processing; and
      $50,000,000 shall be for the development of systems required to
      implement chapter 33 of title 38, United States Code./


      /office of inspector general/

      / For an additional amount for `Office of Inspector General',
      $4,400,000, to remain available until September 30, 2011, for
      oversight and audit of programs, grants and projects funded under
      this title./


      /construction, major projects/

      / For an additional amount for `Construction, Major Projects',
      $1,105,333,000, to remain available until September 30, 2013,
      which shall be for acceleration and construction of ongoing and
      planned construction, including physical security construction, of
      major medical facilities and National Cemeteries consistent with
      the Department of Veterans Affairs' Five Year Capital Plan:
      /Provided,/ That notwithstanding any other provision of law, such
      funds may be obligated and expended to carry out planning and
      design and major medical facility construction not otherwise
      authorized by law: /Provided further,/ That within 30 days of
      enactment of this Act the Secretary of Veterans Affairs shall
      submit to the Committees on Appropriations of both Houses of
      Congress an expenditure plan for funds provided under this heading
      prior to obligation./


      /construction, minor projects/

      / For an additional amount for `Construction, Minor Projects',
      $939,836,000, to remain available until September 30, 2010, of
      which $860,742,000 shall be for Veterans Health Administration
      minor construction; $20,300,000 shall be for Veterans Benefits
      Administration minor construction, including $300,000 for energy
      efficiency initiatives; and $29,012,000 shall be for National
      Cemetery Administration minor construction./


      /grants for construction of state extended care facilities/

      / For an additional amount for `Grants for Construction of State
      Extended Care Facilities', $257,986,000, to remain available until
      September 30, 2010, for grants to assist States to acquire or
      construct State nursing home and domiciliary facilities and to
      remodel, modify, or alter existing hospital, nursing home, and
      domiciliary facilities in State homes, for furnishing care to
      veterans as authorized by sections 8131 through 8137 of title 38,
      United States Code./


      /Administrative Provision/

      / Sec. 1002. Payments to Eligible Persons Who Served in the United
      States Armed Forces in the Far East During World War II. (a)
      Findings- Congress makes the following findings:/

            / (1) The Philippine islands became a United States
            possession in 1898 when they were ceded from Spain following
            the Spanish-American War./

            / (2) During World War II, Filipinos served in a variety of
            units, some of which came under the direct control of the
            United States Armed Forces./

            / (3) The regular Philippine Scouts, the new Philippine
            Scouts, the Guerrilla Services, and more than 100,000
            members of the Philippine Commonwealth Army were called into
            the service of the United States Armed Forces of the Far
            East on July 26, 1941, by an executive order of President
            Franklin D. Roosevelt./

            / (4) Even after hostilities had ceased, wartime service of
            the new Philippine Scouts continued as a matter of law until
            the end of 1946, and the force gradually disbanded and was
            disestablished in 1950./

            / (5) Filipino veterans who were granted benefits prior to
            the enactment of the so-called Rescissions Acts of 1946
            (Public Laws 79-301 and 79-391) currently receive full
            benefits under laws administered by the Secretary of
            Veterans Affairs, but under section 107 of title 38, United
            States Code, the service of certain other Filipino veterans
            is deemed not to be active service for purposes of such laws./

            / (6) These other Filipino veterans only receive certain
            benefits under title 38, United States Code, and, depending
            on where they legally reside, are paid such benefit amounts
            at reduced rates./

            / (7) The benefits such veterans receive include
            service-connected compensation benefits paid under chapter
            11 of title 38, United States Code, dependency indemnity
            compensation survivor benefits paid under chapter 13 of
            title 38, United States Code, and burial benefits under
            chapters 23 and 24 of title 38, United States Code, and such
            benefits are paid to beneficiaries at the rate of $0.50 per
            dollar authorized, unless they lawfully reside in the United
            States./

            / (8) Dependents' educational assistance under chapter 35 of
            title 38, United States Code, is also payable for the
            dependents of such veterans at the rate of $0.50 per dollar
            authorized, regardless of the veterans' residency./

      / (b) Compensation Fund- /

            / (1) IN GENERAL- There is in the general fund of the
            Treasury a fund to be known as the `Filipino Veterans Equity
            Compensation Fund' (in this section referred to as the
            `compensation fund')./

            / (2) AVAILABILITY OF FUNDS- Subject to the availability of
            appropriations for such purpose, amounts in the fund shall
            be available to the Secretary of Veterans Affairs without
            fiscal year limitation to make payments to eligible persons
            in accordance with this section./

      / (c) Payments- /

            / (1) IN GENERAL- The Secretary may make a payment from the
            compensation fund to an eligible person who, during the
            one-year period beginning on the date of the enactment of
            this Act, submits to the Secretary a claim for benefits
            under this section. The application for the claim shall
            contain such information and evidence as the Secretary may
            require./

            / (2) PAYMENT TO SURVIVING SPOUSE- If an eligible person who
            has filed a claim for benefits under this section dies
            before payment is made under this section, the payment under
            this section shall be made instead to the surviving spouse,
            if any, of the eligible person./

      / (d) Eligible Persons- An eligible person is any person who--/

            / (1) served--/

                  / (A) before July 1, 1946, in the organized military
                  forces of the Government of the Commonwealth of the
                  Philippines, while such forces were in the service of
                  the Armed Forces of the United States pursuant to the
                  military order of the President dated July 26, 1941,
                  including among such military forces organized
                  guerrilla forces under commanders appointed,
                  designated, or subsequently recognized by the
                  Commander in Chief, Southwest Pacific Area, or other
                  competent authority in the Army of the United States; or/

                  / (B) in the Philippine Scouts under section 14 of the
                  Armed Forces Voluntary Recruitment Act of 1945 (59
                  Stat. 538); and/

            / (2) was discharged or released from service described in
            paragraph (1) under conditions other than dishonorable./

      / (e) Payment Amounts- Each payment under this section shall be--/

            / (1) in the case of an eligible person who is not a citizen
            of the United States, in the amount of $9,000; and/

            / (2) in the case of an eligible person who is a citizen of
            the United States, in the amount of $15,000./

      / (f) Limitation- The Secretary may not make more than one payment
      under this section for each eligible person described in
      subsection (d)./

      / (g) Clarification of Treatment of Payments Under Certain Laws-
      Amounts paid to a person under this section--/

            / (1) shall be treated for purposes of the internal revenue
            laws of the United States as damages for human suffering; and/

            / (2) shall not be included in income or resources for
            purposes of determining--/

                  / (A) eligibility of an individual to receive benefits
                  described in section 3803(c)(2)(C) of title 31, United
                  States Code, or the amount of such benefits;/

                  / (B) eligibility of an individual to receive benefits
                  under title VIII of the Social Security Act, or the
                  amount of such benefits; or/

                  / (C) eligibility of an individual for, or the amount
                  of benefits under, any other Federal or federally
                  assisted program./

      / (h) Release- /

            / (1) IN GENERAL- Except as provided in paragraph (2), the
            acceptance by an eligible person or surviving spouse, as
            applicable, of a payment under this section shall be final,
            and shall constitute a complete release of any claim against
            the United States by reason of any service described in
            subsection (d)./

            / (2) PAYMENT OF PRIOR ELIGIBILITY STATUS- Nothing in this
            section shall prohibit a person from receiving any benefit
            (including health care, survivor, or burial benefits) which
            the person would have been eligible to receive based on laws
            in effect as of the day before the date of the enactment of
            this Act./

      / (i) Recognition of Service- The service of a person as described
      in subsection (d) is hereby recognized as active military service
      in the Armed Forces for purposes of, and to the extent provided
      in, this section./

      / (j) Administration- /

            / (1) The Secretary shall promptly issue application forms
            and instructions to ensure the prompt and efficient
            administration of the provisions of this section./

            / (2) The Secretary shall administer the provisions of this
            section in a manner consistent with applicable provisions of
            title 38, United States Code, and other provisions of law,
            and shall apply the definitions in section 101 of such title
            in the administration of such provisions, except to the
            extent otherwise provided in this section./

      / (k) Reports- The Secretary shall include, in documents submitted
      to Congress by the Secretary in support of the President's budget
      for each fiscal year, detailed information on the operation of the
      compensation fund, including the number of applicants, the number
      of eligible persons receiving benefits, the amounts paid out of
      the compensation fund, and the administration of the compensation
      fund for the most recent fiscal year for which such data is
      available./

      / (l) Authorization of Appropriation- There is authorized to be
      appropriated to the compensation fund $198,000,000, to remain
      available until expended, to make payments under this section./


      /RELATED AGENCY/


      /DEPARTMENT OF DEFENSE--CIVIL/


      /Cemeterial Expenses, Army/


      /salary and expenses/

      / For an additional amount for `Cemeterial Expenses, Army',
      $60,300,000, to remain available until September 30, 2010, for
      land development, columbarium construction, and relocation of
      utilities at Arlington National Cemetery./


      /TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS/


      /DEPARTMENT OF STATE/


      /Administration of Foreign Affairs/


      /diplomatic and consular programs/

      / For an additional amount for `Diplomatic and Consular Programs'
      for urgent domestic facilities requirements, $90,000,000, to
      remain available until September 30, 2010, of which up to
      $20,000,000 shall be available for passport facilities and
      systems, and up to $65,000,000 shall be available for a
      consolidated security training facility in the United States and
      should be obligated in accordance with United States General
      Services Administration site selection procedures: /Provided,/
      That the Secretary of State shall submit to the Committees on
      Appropriations within 90 days of enactment of this Act a detailed
      spending plan for funds appropriated under this heading: /Provided
      further,/ That with respect to the funds made available for
      passport facilities and systems, such plan shall be developed in
      consultation with the Department of Homeland Security and the
      General Services Administration and shall coordinate and
      co-locate, to the extent feasible, the construction of passport
      agencies with other Federal facilities./


      /capital investment fund/

      / For an additional amount for `Capital Investment Fund',
      $228,000,000, to remain available until September 30, 2010, which
      shall be available for information technology security and
      upgrades to support mission-critical operations: /Provided,/ That
      the Secretary of State and the Administrator of the United States
      Agency for International Development shall coordinate information
      technology systems, where appropriate, to increase efficiencies
      and eliminate redundancies, to include co-location of backup
      information management facilities: /Provided further,/ That the
      Secretary of State shall submit to the Committees on
      Appropriations within 90 days of enactment of this Act a detailed
      spending plan for funds appropriated under this heading./


      /office of inspector general/

      / For an additional amount for `Office of Inspector General' for
      oversight requirements, $1,500,000, to remain available until
      September 30, 2011./


      /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, to remain available until September
      30, 2010: /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': /Provided,/ That the Secretary of State shall
      submit to the Committees on Appropriations within 90 days of
      enactment of this Act a detailed spending plan for funds
      appropriated under this heading./


      /UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT/


      /Funds Appropriated to the President/


      /capital investment fund/

      / For an additional amount for `Capital Investment Fund',
      $58,000,000, to remain available until September 30, 2010, which
      shall be available for information technology modernization
      programs and implementation of the Global Acquisition System:
      /Provided,/ That the Administrator of the United States Agency for
      International Development shall submit to the Committees on
      Appropriations within 90 days of enactment of this Act a detailed
      spending plan for funds appropriated under this heading./


      /Operating Expenses of the United States Agency for International
      Development Office of Inspector General/

      / For an additional amount for `Operating Expenses of the United
      States Agency for International Development Office of Inspector
      General' for oversight requirements, $500,000, to remain available
      until September 30, 2011./


      /TITLE XII--TRANSPORTATION AND HOUSING AND URBAN DEVELOPMENT, AND
      RELATED AGENCIES/


      /DEPARTMENT OF TRANSPORTATION/


      /Office of the Secretary/


      /supplemental discretionary grants for a national surface
      transportation system/

      / For an additional amount for capital investments in surface
      transportation infrastructure, $5,500,000,000, to remain available
      until September 30, 2011: /Provided,/ That the Secretary of
      Transportation shall distribute funds provided under this heading
      as discretionary grants to be awarded to State and local
      governments on a competitive basis for projects that will have a
      significant impact on the Nation, a metropolitan area, or a
      region: /Provided further,/ That projects eligible for funding
      provided under this heading shall include, but not be limited to,
      highway or bridge projects eligible under title 23, United States
      Code, including interstate rehabilitation, improvements to the
      rural collector road system, the reconstruction of overpasses and
      interchanges, bridge replacements, seismic retrofit projects for
      bridges, and road realignments; public transportation projects
      eligible under chapter 53 of title 49, United States Code,
      including investments in projects participating in the New Starts
      or Small Starts programs that will expedite the completion of
      those projects and their entry into revenue service; passenger and
      freight rail transportation projects; and port infrastructure
      investments, including projects that connect ports to other modes
      of transportation and improve the efficiency of freight movement:
      /Provided further,/ That of the amount made available under this
      paragraph, the Secretary may use an amount not to exceed
      $200,000,000 for the purpose of paying the subsidy costs of
      projects eligible for federal credit assistance under chapter 6 of
      title 23, United States Code, if the Secretary finds that such use
      of the funds would advance the purposes of this paragraph:
      /Provided further,/ That in distributing funds provided under this
      heading, the Secretary shall take such measures so as to ensure an
      equitable geographic distribution of funds and an appropriate
      balance in addressing the needs of urban and rural communities:
      /Provided further,/ That a grant funded under this heading shall
      be not less than $20,000,000 and not greater than $500,000,000:
      /Provided further,/ That the Federal share of the costs for which
      an expenditure is made under this heading may be up to 100
      percent: /Provided further,/ That the Secretary shall give
      priority to projects that require an additional share of Federal
      funds in order to complete an overall financing package, and to
      projects that are expected to be completed within 3 years of
      enactment of this Act: /Provided further,/ That the Secretary
      shall publish criteria on which to base the competition for any
      grants awarded under this heading not later than 75 days after
      enactment of this Act: /Provided further,/ That the Secretary
      shall require applications for funding provided under this heading
      to be submitted not later than 180 days after enactment of this
      Act, and announce all projects selected to be funded from such
      funds not later than 1 year after enactment of this Act: /Provided
      further,/ That the Secretary shall require all additional
      applications to be submitted not later than 1 year after enactment
      of this Act, and announce not later than 180 days following such
      1-year period all additional projects selected to be funded with
      funds withdrawn from States and grantees and transferred from
      `Supplemental Grants for Highway Investments' and `Supplemental
      Grants for Public Transit Investment': /Provided further,/ That
      projects conducted using funds provided under this heading must
      comply with the requirements of subchapter IV of chapter 31 of
      title 40, United States Code: /Provided further,/ That the
      Secretary may retain up to $5,000,000 of the funds provided under
      this heading, and may transfer portions of those funds to the
      Administrators of the Federal Highway Administration, the Federal
      Transit Administration, the Federal Railroad Administration and
      the Maritime Administration, to fund the award and oversight of
      grants made under this heading./


      /Federal Aviation Administration/


      /supplemental funding for facilities and equipment/

      / For an additional amount for necessary investments in Federal
      Aviation Administration infrastructure, $200,000,000: /Provided,/
      That funding provided under this heading shall be used to make
      improvements to power systems, air route traffic control centers,
      air traffic control towers, terminal radar approach control
      facilities, and navigation and landing equipment: /Provided
      further,/ That priority be given to such projects or activities
      that will be completed within 2 years of enactment of this Act:
      /Provided further,/ That amounts made available under this heading
      may be provided through grants in addition to the other
      instruments authorized under section 106(l)(6) of title 49, United
      States Code: /Provided further,/ That the Federal share of the
      costs for which an expenditure is made under this heading shall be
      100 percent: /Provided further,/ That amounts provided under this
      heading may be used for expenses the agency incurs in
      administering this program: /Provided further,/ That not more than
      60 days after enactment of this Act, the Administrator shall
      establish a process for applying, reviewing and awarding grants
      and cooperative and other transaction agreements, including the
      form and content of an application, and requirements for the
      maintenance of records that are necessary to facilitate an
      effective audit of the use of the funding provided: /Provided
      further,/ That section 50101 of title 49, United States Code,
      shall apply to funds provided under this heading./


      /supplemental discretionary grants for airport investment/

      / For an additional amount for capital expenditures authorized
      under sections 47102(3) and 47504(c) of title 49, United States
      Code, and for the procurement, installation and commissioning of
      runway incursion prevention devices and systems at airports of
      such title, $1,100,000,000: /Provided,/ That the Secretary of
      Transportation shall distribute funds provided under this heading
      as discretionary grants to airports, with priority given to those
      projects that demonstrate to his or her satisfaction their ability
      to be completed within 2 years of enactment of this Act, and serve
      to supplement and not supplant planned expenditures from
      airport-generated revenues or from other State and local sources
      on such activities: /Provided further,/ That the Federal share
      payable of the costs for which a grant is made under this heading
      shall be 100 percent: /Provided further,/ That the amount made
      available under this heading shall not be subject to any
      limitation on obligations for the Grants-in-Aid for Airports
      program set forth in any Act: /Provided further,/ That section
      50101 of title 49, United States Code, shall apply to funds
      provided under this heading: /Provided further,/ That projects
      conducted using funds provided under this heading must comply with
      the requirements of subchapter IV of chapter 31 of title 40,
      United States Code: /Provided further,/ That the Administrator of
      the Federal Aviation Administration may retain and transfer to
      `Federal Aviation Administration, Operations' up to one-quarter of
      1 percent of the funds provided under this heading to fund the
      award and oversight by the Administrator of grants made under this
      heading./


      /Federal Highway Administration/


      /supplemental grants for highway investment/

      / For an additional amount for restoration, repair, construction
      and other activities eligible under paragraph (b) of section 133
      of title 23, United States Code, $27,060,000,000: /Provided,/ That
      funds provided under this heading shall be apportioned to States
      using the formula set forth in section 104(b)(3) of such title:
      /Provided further,/ That 180 days following the date of such
      apportionment, the Secretary of Transportation shall withdraw from
      each State an amount equal to 50 percent of the funds awarded to
      that grantee less the amount of funding obligated, and the
      Secretary shall redistribute such amounts to other States that
      have had no funds withdrawn under this proviso in the manner
      described in section 120(c) of division K of Public Law 110-161:
      /Provided further,/ That 1 year following the date of such
      apportionment, the Secretary shall withdraw from each recipient of
      funds apportioned under this heading any unobligated funds and
      transfer such funds to `Supplemental Discretionary Grants for a
      National Surface Transportation System': /Provided further,/ That
      at the request of a State, the Secretary of Transportation may
      provide an extension of such 1-year period only to the extent that
      he or she feels satisfied that the State has encountered extreme
      conditions that create an unworkable bidding environment or other
      extenuating circumstances: /Provided further,/ That before
      granting a such an extension, the Secretary shall send a letter to
      the House and Senate Committees on Appropriations that provides a
      thorough justification for the extension: /Provided further,/ That
      the provisions of subsections 133(d)(3) and 133(d)(4) of title 23,
      United States Code, shall apply to funds apportioned under this
      heading, except that the percentage of funds to be allocated to
      local jurisdictions shall be 40 percent and such allocation,
      notwithstanding any other provision of law, shall be conducted in
      all states within the United States: /Provided further,/ That
      funds allocated to such urbanized areas and other areas shall not
      be subject to the redistribution of amounts required 180 days
      following the date of apportionment of funds provided under this
      heading: /Provided further,/ That funds apportioned under this
      heading may be used for, but not be limited to, projects that
      address stormwater runoff, investments in passenger and freight
      rail transportation, and investments in port infrastructure:
      /Provided further,/ that each State shall use not less than 5
      percent of funds apportioned to it for activities eligible under
      subsections 149(b) and (c) of title 23, United States Code:
      /Provided further,/ That of the funds provided under this heading,
      $60,000,000 shall be for capital expenditures eligible under
      section 147 of title 23, United States Code: /Provided further,/
      That the Secretary of Transportation shall distribute such
      $60,000,000 as competitive discretionary grants to States, with
      priority given to those projects that demonstrate to his or her
      satisfaction their ability to be completed within 2 years of
      enactment of this Act: /Provided further,/ That of the funds
      provided under this heading, $500,000,000 shall be for investments
      in transportation at Indian reservations and Federal lands, and
      administered in accordance with chapter 2 of title 23, United
      States Code: /Provided further,/ That of the funds identified in
      the preceding proviso, $320,000,000 shall be for the Indian
      Reservation Roads program, $100,000,000 shall be for the Park
      Roads and Parkways program, $70,000,000 shall be for the Forest
      Highway Program, and $10,000,000 shall be for the Refuge Roads
      program: /Provided further,/ That for investments at Indian
      reservations and Federal lands, priority shall be given to capital
      investments, and to projects and activities that can be completed
      within 2 years of enactment of this Act: /Provided further,/ That
      1 year following the enactment of this Act, to ensure the prompt
      use of the $500,000,000 provided for investments at Indian
      reservations and Federal lands, the Secretary shall have the
      authority to redistribute unobligated funds within the respective
      program for which the funds were appropriated: /Provided further,/
      That up to 4 percent of the funding provided for Indian
      Reservation Roads may be used by the Secretary of the Interior for
      program management and oversight and project-related
      administrative expenses: /Provided further,/ That section
      134(f)(3)(C)(ii)(II) of title 23, United States Code, shall not
      apply to funds provided under this heading: /Provided further,/
      That the Federal share payable on account of any project or
      activity carried out with funds made available under this heading
      shall be at the option of the recipient, and may be up to 100
      percent of the total cost thereof: /Provided further,/ That
      funding provided under this heading shall be in addition to any
      and all funds provided for fiscal years 2008 and 2009 in any other
      Act for `Federal-aid Highways' and shall not affect the
      distribution of funds provided for `Federal-aid Highways' in any
      other Act: /Provided further,/ That the amount made available
      under this heading shall not be subject to any limitation on
      obligations for Federal-aid highways or highway safety
      construction programs set forth in any Act: /Provided further,/
      That projects conducted using funds provided under this heading
      must comply with the requirements of subchapter IV of chapter 31
      of title 40, United States Code: /Provided further,/ That section
      313 of title 23, United States Code, shall apply to funds provided
      under this heading: /Provided further,/ That section 1101(b) of
      Public Law 109-59 shall apply to funds apportioned under this
      heading: /Provided further,/ That for the purposes of the
      definition of States for this paragraph, sections 101(a)(32) of
      title 23, United States Code, shall apply: /Provided further,/
      That the Administrator of the Federal Highway Administration may
      retain up to $12,000,000 of the funds provided under this heading
      to carry out the function of the `Federal Highway Administration,
      Limitation on Administrative Expenses' and to fund the oversight
      by the Administrator of projects and activities carried out with
      funds made available to the Federal Highway Administration in this
      Act./


      /Federal Railroad Administration/


      /supplemental grants to states for intercity passenger rail service/

      / For an additional amount for discretionary grants to States to
      pay for the cost of projects described in paragraphs (2)(A) and
      (2)(B) of section 24401 of title 49, United States Code, and
      subsection (b) of section 24105 of such title, $250,000,000:
      /Provided,/ That to be eligible for assistance under this
      paragraph, the specific project must be on a Statewide
      Transportation Improvement Plan at the time of the application to
      qualify: /Provided further,/ That the Secretary of Transportation
      shall give priority to projects that demonstrate an ability to be
      completed within 2 years of enactment of this Act, and to projects
      that improve the safety and reliability of intercity passenger
      trains: /Provided further,/ That the Federal share payable of the
      costs for which a grant is made under this heading shall be 100
      percent: /Provided further,/ That projects conducted using funds
      provided under this heading must comply with the requirements of
      subchapter IV of chapter 31 of title 40, United States Code:
      /Provided further,/ That section 24405(a) of title 49, United
      States Code, shall apply to funds provided under this heading:
      /Provided further,/ That the Administrator of the Federal Railroad
      Administration may retain and transfer to `Federal Railroad
      Administration, Safety and Operations' up to one-quarter of 1
      percent of the funds provided under this heading to fund the award
      and oversight by the Administrator of grants made under this heading./


      /supplemental capital grants to the national railroad passenger
      corporation/

      / For an additional amount for the immediate investment in capital
      projects necessary to maintain and improve national intercity
      passenger rail service, including the rehabilitation of rolling
      stock, $850,000,000: /Provided,/ That funds made available under
      this heading shall be allocated directly to the National Railroad
      Passenger Corporation: /Provided further,/ That the Board of
      Directors of the corporation shall take measures to ensure that
      priority is given to capital projects that expand passenger rail
      capacity: /Provided further,/ That the Board of Directors shall
      take measures to ensure that projects funded under this heading
      shall be completed within 2 years of enactment of this Act, and
      shall serve to supplement and not supplant planned expenditures
      for such activities from other Federal, State, local and corporate
      sources: /Provided further,/ That said Board of Directors shall
      certify to the House and Senate Committees on Appropriations in
      writing their compliance with the preceding proviso: /Provided
      further,/ That section 24305(f) of title 49, United States Code,
      shall apply to funds provided under this heading: /Provided
      further,/ That not more than 50 percent of the funds provided
      under this heading may be used for capital projects along the
      Northeast Corridor./


      /high-speed rail corridor program/

      / To make grants for high-speed rail projects under the provisions
      of section 26106 of title 49, United States Code, $2,000,000,000,
      to remain available until September 30, 2011: /Provided,/ That the
      Federal share payable of the costs for which a grant is made under
      this heading shall be 100 percent: /Provided further,/ That the
      Administrator of the Federal Railroad Administration may retain
      and transfer to `Federal Railroad Administration, Safety and
      Operations' up to one-quarter of 1 percent of the funds provided
      under this heading to fund the award and oversight by the
      Administrator of grants made under this paragraph./


      /Federal Transit Administration/


      /supplemental grants for public transit investment/

      / For an additional amount for capital expenditures authorized
      under section 5302(a)(1) of title 49, United States Code,
      $8,400,000,000: /Provided,/ That the Secretary of Transportation
      shall apportion 71 percent of the funds apportioned under this
      heading using the formula set forth in subsections (a) through (c)
      of section 5336 of title 49, United States Code, 19 percent of the
      funds apportioned under this heading using the formula set forth
      in section 5340 of such title, and 10 percent of the funding
      apportioned under this heading using the formula set forth in
      subsection 5311(c) of such title: /Provided further,/ That 180
      days following the date of such apportionment, the Secretary shall
      withdraw from each grantee an amount equal to 50 percent of the
      funds awarded to that grantee less the amount of funding
      obligated, and the Secretary shall redistribute such amounts to
      other grantees that have had no funds withdrawn under this proviso
      utilizing whatever method he or she deems appropriate to ensure
      that all funds provided under this paragraph shall be utilized
      promptly: /Provided further,/ That 1 year following the date of
      such apportionment, the Secretary shall withdraw from each grantee
      any unobligated funds and transfer such funds to `Supplemental
      Discretionary Grants for a National Surface Transportation
      System': /Provided further,/ That at the request of a grantee, the
      Secretary of Transportation may provide an extension of such
      1-year periods if he or she feels satisfied that the grantee has
      encountered an unworkable bidding environment or other extenuating
      circumstances: /Provided further,/ That before granting such an
      extension, the Secretary shall send a letter to the House and
      Senate Committees on Appropriations that provides a thorough
      justification for the extension: /Provided further,/ That of the
      funds apportioned using the formula set forth in subsection
      5311(c) of title 49, United States Code, 2 percent shall be made
      available for section 5311(c)(1): /Provided further,/ That of the
      funding provided under this heading, $200,000,000 shall be
      distributed as discretionary grants to public transit agencies for
      capital investments that will assist in reducing the energy
      consumption or greenhouse gas emissions of their public
      transportation systems: /Provided further,/ That for such grants
      on energy-related investments, priority shall be given to projects
      based on the total energy savings that are projected to result
      from the investment, and projected energy savings as a percentage
      of the total energy usage of the public transit agency: /Provided
      further,/ That the Federal share of the costs for which any grant
      is made under this heading shall be at the option of the
      recipient, and may be up to 100 percent: /Provided further,/ That
      the amount made available under this heading shall not be subject
      to any limitation on obligations for transit programs set forth in
      any Act: /Provided further,/ That section 1101(b) of Public Law
      109-59 shall apply to funds apportioned under this heading:
      /Provided further,/ That the funds appropriated under this heading
      shall be subject to subsection 5323(j) and section 5333 of title
      49, United States Code as well as sections 5304 and 5305 of said
      title, as appropriate, but shall not be comingled with funds
      available under the Formula and Bus Grants account: /Provided
      further,/ That the Administrator of the Federal Transit
      Administration may retain up to $3,000,000 of the funds provided
      under this heading to carry out the function of `Federal Transit
      Administration, Administrative Expenses' and to fund the oversight
      of grants made under this heading by the Administrator./


      /Maritime Administration/


      /supplemental grants for assistance to small shipyards/

      / To make grants to qualified shipyards as authorized under
      section 3506 of Public Law 109-163 or section 54101 of title 46,
      United States Code, $100,000,000: /Provided,/ That the Secretary
      of Transportation shall institute measures to ensure that funds
      provided under this heading shall be obligated within 180 days of
      the date of their distribution: /Provided further,/ That the
      Maritime Administrator may retain and transfer to `Maritime
      Administration, Operations and Training' up to 2 percent of the
      funds provided under this heading to fund the award and oversight
      by the Administrator of grants made under this heading./


      /Office of Inspector General/


      /salaries and expenses/

      / For an additional amount for necessary expenses of the Office of
      Inspector General to carry out the provisions of the Inspector
      General Act of 1978, as amended, $7,750,000, to remain available
      until September 30, 2011, and an additional $12,250,000 for such
      purposes, to remain available until September 30, 2012:
      /Provided,/ That the funding made available under this heading
      shall be used for conducting audits and investigations of projects
      and activities carried out with funds made available in this Act
      to the Department of Transportation and to the National Railroad
      Passenger Corporation: /Provided further,/ That the Inspector
      General shall have all necessary authority, in carrying out the
      duties specified in the Inspector General Act, as amended (5
      U.S.C. App. 3), to investigate allegations of fraud, including
      false statements to the Government (18 U.S.C. 1001), by any person
      or entity that is subject to regulation by the Department./


      /GENERAL PROVISION--DEPARTMENT OF TRANSPORTATION/

      / Sec. 1201. Section 5309(g)(4)(A) of title 49, United States
      Code, is amended by striking `or an amount equivalent to the last
      3 fiscal years of funding allocated under subsections (m)(1)(A)
      and (m)(2)(A)(ii)' and inserting `or the sum of the funds
      available for the next 3 fiscal years beyond the current fiscal
      year, assuming an annual growth of the program of 10 percent'./


      /DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT/


      /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.), $510,000,000, to remain available until
      September 30, 2011: /Provided,/ That $255,000,000 of the amount
      provided 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
      180 days from the date that funds are available to recipients:
      /Provided further,/ That the Secretary shall obligate $255,000,000
      of the amount provided under this heading for competitive grants
      to eligible entities that apply for funds 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: /Provided
      further,/ That recipients of funds under this heading shall
      obligate 100 percent of such funds within 1 year of the date of
      enactment of this Act, expend at least 50 percent of such funds
      within 2 years of the date on which funds become available to such
      jurisdictions for obligation, and expend 100 percent of such funds
      within 3 years of such date: /Provided further,/ That if a
      recipient fails to comply with either the 1-year obligation
      requirement or the 2-year expenditure requirement, the Secretary
      shall recapture all remaining funds awarded to the recipient and
      reallocate such funds to recipients that are in compliance with
      those requirements: /Provided further,/ That if a recipient fails
      to comply with the 3-year expenditure requirement, the Secretary
      shall recapture the balance of the funds awarded to the recipient:
      /Provided further,/ That, notwithstanding any other provision of
      this paragraph, the Secretary may institute measures to ensure
      participation in the formula and competitive allocation of funds
      provided under this paragraph by any housing entity eligible to
      receive funding under title VIII of NAHASDA (25 U.S.C. 4221 et
      seq.): /Provided further,/ That in administering funds provided in
      this heading, 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 imposed by this heading and
      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 or
      regulation: /Provided further,/ That, of the funds made available
      under this heading, up to 1 percent shall be available for
      staffing, training, technical assistance, technology, monitoring,
      research and evaluation activities: /Provided further,/ That any
      funds made available under this heading used by the Secretary for
      personnel expenses shall be transferred to and merged with funding
      provided to `Personnel Compensation and Benefits, Office of Public
      and Indian Housing': /Provided further,/ That any funds made
      available under this heading used by the Secretary for training or
      other administrative expenses shall be transferred to and merged
      with funding provided to `Administration, Operations, and
      Management', for non-personnel expenses of the Department of
      Housing and Urban Development: /Provided further,/ That any funds
      made available under this heading used by the Secretary for
      technology shall be transferred to and merged with the funding
      provided to `Working Capital Fund'./


      /Public Housing Capital Fund/

      / For an additional amount for the `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,
      to remain available until September 30, 2011: /Provided,/ That the
      Secretary of Housing and Urban Development shall allocate
      $3,000,000,000 of this amount by the formula authorized under
      section 9(d)(2) of the Act, except that the Secretary may
      determine not to allocate funding to public housing agencies
      currently designated as troubled or to public housing agencies
      that elect not to accept such funding: /Provided further,/ That
      the Secretary shall make available $2,000,000,000 by competition
      for priority investments, including investments that leverage
      private sector funding or financing for renovations and energy
      conservation retrofit investments: /Provided further,/ That public
      housing agencies shall prioritize capital projects that are
      already underway or included in the 5-year capital fund plans
      required by the Act (42 U.S.C. 1437c-1(a)): /Provided further,/
      That in allocating competitive grants under this heading, the
      Secretary shall give priority consideration to the rehabilitation
      of vacant rental units: /Provided further,/ That notwithstanding
      any other provision of law, (1) funding provided herein may not be
      used for operating or rental assistance activities, and (2) any
      restriction of funding to replacement housing uses shall be
      inapplicable: /Provided further,/ That notwithstanding any other
      provision of law, the Secretary shall institute measures to ensure
      that funds provided under this heading shall serve to supplement
      and not supplant expenditures from other Federal, State, or local
      sources or funds independently generated by the grantee: /Provided
      further,/ That notwithstanding section 9(j), public housing
      agencies shall obligate 100 percent of the funds within 1 year of
      the date of enactment of this Act, shall expend at least 60
      percent of funds within 2 years of the date on which funds become
      available to the agency for obligation, and shall expend 100
      percent of the funds within 3 years of such date: /Provided
      further,/ That if a public housing agency fails to comply with
      either the 1-year obligation requirement or the 2-year expenditure
      requirement, the Secretary shall recapture all remaining funds
      awarded to the public housing agency and reallocate such funds to
      agencies that are in compliance with those requirements: /Provided
      further,/ That if a public housing agency fails to comply with the
      3-year expenditure requirement, the Secretary shall recapture the
      balance of the funds awarded to the public housing agency:
      /Provided further,/ That in administering funds provided in this
      heading, 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 imposed by this heading and
      requirements related to conditions on use of funds for development
      and modernization, fair housing, non-discrimination, 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 or
      regulation: /Provided further,/ That of the funds made available
      under this heading, up to 1 percent shall be available for
      staffing, training, technical assistance, technology, monitoring,
      research and evaluation activities: /Provided further,/ That any
      funds made available under this heading used by the Secretary for
      personnel expenses shall be transferred to and merged with funding
      provided to `Personnel Compensation and Benefits, Office of Public
      and Indian Housing': /Provided further,/ That any funds made
      available under this heading used by the Secretary for training or
      other administrative expenses shall be transferred to and merged
      with funding provided to `Administration, Operations, and
      Management', for non-personnel expenses of the Department of
      Housing and Urban Development: /Provided further,/ That any funds
      made available under this heading used by the Secretary for
      technology shall be transferred to and merged with the funding
      provided to `Working Capital Fund'./


      /Home Investment Partnerships Program/

      / For an additional amount for the `HOME Investment Partnerships
      Program' as authorized under title II of the Cranston-Gonzalez
      National Affordable Housing Act (the `Act'), $250,000,000, to
      remain available until September 30, 2011: /Provided,/ That except
      as specifically provided herein, funds provided under this heading
      shall be distributed pursuant to the formula authorized by section
      217 of the Act: /Provided further,/ That the Secretary may
      establish a minimum grant size: /Provided further,/ That
      participating jurisdictions shall obligate 100 percent of the
      funds within 1 year of the date of enactment of this Act, shall
      expend at least 60 percent of funds within 2 years of the date on
      which funds become available to the participating jurisdiction for
      obligation and shall expend 100 percent of the funds within 3
      years of such date: /Provided further,/ That if a participating
      jurisdiction fails to comply with either the 1-year obligation
      requirement or the 2-year expenditure requirement, the Secretary
      shall recapture all remaining funds awarded to the participating
      jurisdiction and reallocate such funds to participating
      jurisdictions that are in compliance with those requirements:
      /Provided further,/ That if a participating jurisdiction fails to
      comply with the 3-year expenditure requirement, the Secretary
      shall recapture the balance of the funds awarded to the
      participating jurisdiction: /Provided further,/ That in
      administering funds under this heading, 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
      imposed by this heading and requirements related to fair housing,
      non-discrimination, 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 or regulation: /Provided further,/ That the
      Secretary may use funds provided under this heading to provide
      incentives to grantees to use funding for investments in energy
      efficiency and green building technology: /Provided further,/ That
      such incentives may include allocation of up to 20 percent of
      funds made available under this heading other than pursuant to the
      formula authorized by section 217 of the Act: /Provided further,/
      That, of the funds made available under this heading, up to 1
      percent shall be available for staffing, training, technical
      assistance, technology, monitoring, research and evaluation
      activities: /Provided further,/ That any funds made available
      under this heading used by the Secretary for personnel expenses
      shall be transferred to and merged with funding provided to
      `Personnel Compensation and Benefits, Office of Community Planning
      and Development': /Provided further,/ That any funds made
      available under this heading used by the Secretary for training or
      other administrative expenses shall be transferred to and merged
      with funding provided to `Administration, Operations, and
      Management', for non-personnel expenses of the Department of
      Housing and Urban Development: /Provided further,/ That any funds
      made available under this heading used by the Secretary for
      technology shall be transferred to and merged with the funding
      provided to `Working Capital Fund'./

      / For an additional amount for capital investments in low-income
      housing tax credit projects, $2,000,000,000, to remain available
      until September 30, 2011: /Provided, /That the funds shall be
      allocated to States under the HOME program under this Heading
      shall be made available to State housing finance agencies in an
      amount totaling $2,000,000,000, subject to any changes made to a
      State allocation for the benefit of a State by the Secretary of
      Housing and Urban Development for areas that have suffered from
      disproportionate job loss and foreclosure: /Provided further,
      /That the Secretary, in consultation with the States, shall
      determine the amount of funds each State shall have available
      under HOME: /Provided further, /That the State housing finance
      agencies (including for purposes throughout this heading any
      entity that is responsible for distributing low-income housing tax
      credits) or as appropriate as an entity as a gap financer, shall
      distribute these funds competitively under this heading to housing
      developers for projects eligible for funding (such terms including
      those who may have received funding) under the low-income housing
      tax credit program as provided under section 42 of the I.R.C. of
      1986, with a review of both the decisionmaking and process for the
      award by the Secretary of Housing and Urban Development: /Provided
      further, /That funds under this heading must be awarded by State
      housing finance agencies within 120 days of enactment of the Act
      and obligated by the developer of the low-income housing tax
      credit project within one year of the date of enactment of this
      Act, shall expend 75 percent of the funds within two years of the
      date on which the funds become available, and shall expend 100
      percent of the funds within 3 years of such date: /Provided
      further, /That failure by a developer to expend funds within the
      parameters required within the previous proviso shall result in a
      redistribution of these funds by a State housing finance agency or
      by the Secretary if there is a more deserving project in another
      jurisdiction: /Provided further, /That projects awarded tax
      credits within 3 years prior to the date of enactment of this Act
      shall be eligible for funding under this heading: /Provided
      further, /That as part of the review, the Secretary shall ensure
      equitable distribution of funds and an appropriate balance in
      addressing the needs of urban and rural communities with a special
      priority on areas that have suffered from excessive job loss and
      foreclosures: /Provided further, /That State housing finance
      agencies shall give priority to projects that require an
      additional share of Federal funds in order to complete an overall
      funding package, and to projects that are expected to be completed
      within 3 years of enactment: /Provided further,/ That any
      assistance provided to an eligible low-income housing tax credit
      project under this heading shall be made in the same manner and be
      subject to the same limitations (including rent, income, and use
      restrictions) as an allocation of the housing credit amount
      allocated by the State housing finance agency under section 42 of
      the I.R.C. of 1986, except that such assistance shall not be
      limited by, or otherwise affect (except as provided in subsection
      (h)(3)(J) of such section), the State housing finance agency
      applicable to such agency: /Provided further, /That the State
      housing finance agency shall perform asset management functions to
      ensure compliance with section 42 of the I.R.C. of 1986, and the
      long term viability of buildings funded by assistance under this
      heading: /Provided further, /That the term basis (as such term is
      defined in such section 42) of a qualified low-income housing tax
      credit building receiving assistance under this heading shall not
      be reduced by the amount of any grant described under this
      heading: /Provided further, /That the Secretary shall collect all
      information related to the award of Federal funds from state
      housing finance agencies and establish an internet site that shall
      identify all projects selected for an award, including the amount
      of the award as well as the process and all information that was
      used to make the award decision./


      /Homelessness Prevention Fund/

      / For homelessness prevention activities, $1,500,000,000, to
      remain available until September 30, 2011: /Provided,/ That funds
      provided under this heading shall 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, credit repair, security or utility
      deposits, utility payments, rental assistance for a final month at
      a location, and moving cost assistance; or other appropriate
      homelessness prevention activities: /Provided further,/ That
      grantees receiving such assistance shall collect data on the use
      of the funds awarded and persons served with this assistance in
      the Homeless Management Information System (HMIS) or other
      comparable database: /Provided further,/ That grantees may use up
      to 5 percent of any grant for administrative costs: /Provided
      further,/ That funding made available under this heading shall be
      allocated to eligible grantees (as defined and designated in
      sections 411 and 412 of subtitle B of title IV of the
      McKinney-Vento Homeless Assistance Act, (the `Act')) pursuant to
      the formula authorized by section 413 of the Act: /Provided
      further,/ That the Secretary may establish a minimum grant size:
      /Provided further,/ That grantees shall expend at least 75 percent
      of funds within 2 years of the date that funds became available to
      them for obligation, and 100 percent of funds within 3 years of
      such date, and the Secretary may recapture unexpended funds in
      violation of the 2-year expenditure requirement and reallocate
      such funds to grantees in compliance with that requirement:
      /Provided further,/ That the Secretary may waive statutory or
      regulatory provisions (except provisions for fair housing,
      nondiscrimination, labor standards, and the environment) necessary
      to facilitate the timely expenditure of funds: /Provided further,/
      That the Secretary shall publish a notice to establish such
      requirements as may be necessary to carry out the provisions of
      this section within 30 days of enactment of the Act and that this
      notice shall take effect upon issuance: /Provided further,/ That
      of the funds provided under this heading, up to 1.5 percent shall
      be available for staffing, training, technical assistance,
      technology, monitoring, research and evaluation activities:
      /Provided further,/ That any funds made available under this
      heading used by the Secretary for personnel expense shall be
      transferred to and merged with funding provided to `Community
      Planning and Development Personnel Compensation and Benefits':
      /Provided further,/ That any funds made available under this
      heading used by the Secretary for training or other administrative
      expenses shall be transferred to and merged with funding provided
      to `Administration, Operations, and Management' for non-personnel
      expenses of the Department of Housing and Urban Development:
      /Provided further,/ That any funding made available under this
      heading used by the Secretary for technology shall be transferred
      to and merged with the funding provided to `Working Capital Fund.'/


      /Assisted Housing Stability and Energy and Green Retrofit Investments/

      / For assistance 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 as amended (42 U.S.C. 1437f),
      $2,250,000,000, of which $2,132,000,000 shall be for an additional
      amount for paragraph (1) under the heading `Project-Based Rental
      Assistance' in Public Law 110-161 for payments to owners for
      12-month periods, and of which $118,000,000 shall be for grants or
      loans for energy retrofit and green investments in such assisted
      housing: /Provided,/ That projects funded with grants or loans
      provided under this heading must comply with the requirements of
      subchapter IV of chapter 31 of title 40, United States Code:
      /Provided further,/ That such grants or loans shall be provided
      through the existing policies, procedures, contracts, and
      transactional infrastructure of the authorized programs
      administered by 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 to ensure the maintenance and preservation of the
      property, the continued operation and maintenance of energy
      efficiency technologies, and the timely expenditure of funds:
      /Provided further,/ That the Secretary may provide incentives to
      owners to undertake energy or green retrofits as a part of such
      grant or loan terms, including, but not limited to, investment
      fees to cover oversight and implementation costs incurred by said
      owner, or to encourage job creation for low-income or very
      low-income individuals: /Provided further,/ That the grants or
      loans shall include a financial assessment and physical inspection
      of such property: /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, but of not fewer than
      15 years: /Provided further,/ That the Secretary shall undertake
      appropriate underwriting and oversight with respect to grant and
      loan transactions and may set aside up to 5 percent of the funds
      made available under this heading for grants or loans for such
      purpose: /Provided further,/ That the Secretary shall take steps
      necessary to ensure that owners receiving funding for energy and
      green retrofit investments under this heading shall expend such
      funding within 2 years of the date they received the funding:
      /Provided further,/ That the Secretary may waive or modify
      statutory or regulatory requirements with respect to any existing
      grant, loan, or insurance mechanism authorized to be used by the
      Secretary to enable or facilitate the accomplishment of
      investments supported with funds made available under this heading
      for grants or loans: /Provided further,/ That of the funds
      provided under this heading, up to 1.5 percent shall be available
      for staffing, training, technical assistance, technology,
      monitoring, research and evaluation activities: /Provided
      further,/ That funding made available under this heading and used
      by the Secretary for personnel expenses shall be transferred to
      and merged with funding provided to `Housing Compensation and
      Benefits': /Provided further,/ That any funding made available
      under this heading used by the Secretary for training and other
      administrative expenses shall be transferred to and merged with
      funding provided to `Administration, Operations and Management'
      for non-personnel expenses of the Department of Housing and Urban
      Development: /Provided further,/ That any funding made available
      under this heading used by the Secretary for technology shall be
      transferred to and merged with funding provided to `Working
      Capital Fund.'/


      /Office of Healthy Homes and Lead Hazard Control/

      / For an additional amount for the `Lead Hazard Reduction', as
      authorized by section 1011 of the Residential Lead-Based Paint
      Hazard Reduction Act of 1992, $100,000,000, to remain available
      until September 30, 2011: /Provided,/ That funds shall be awarded
      first to applicant jurisdictions which had applied under the
      Lead-Based Paint Hazard Control Grant Program Notice of Funding
      Availability for fiscal year 2008, and were found in the
      application review to be qualified for award, but were not awarded
      because of funding limitations, and that any funds which remain
      after reservation of funds for such grants shall be added to the
      amount of funds to be awarded under the Lead-Based Paint Hazard
      Control Grant Program Notice of Funding Availability for fiscal
      year 2009: /Provided further,/ That each applicant jurisdiction
      for the Lead-Based Paint Hazard control Grant Program Notice of
      Funding Availability for fiscal year 2009 shall submit a detailed
      plan and strategy that demonstrates adequate capacity that is
      acceptable to the Secretary to carry out the proposed use of
      funds: /Provided further,/ That recipients of funds under this
      heading shall obligate 100 percent of such funds within 1 year of
      the date of enactment of this Act, expend at least 75 percent of
      such funds within 2 years of the date on which funds become
      available to such jurisdictions for obligation, and expend 100
      percent of such funds within 3 years of such date: /Provided
      further,/ That if a recipient fails to comply with either the
      1-year obligation requirement or the 2-year expenditure
      requirement, the Secretary shall recapture all remaining funds
      awarded to the recipient and reallocate such funds to recipients
      that are in compliance with those requirements: /Provided
      further,/ That if a recipient fails to comply with the 3-year
      expenditure requirement, the Secretary shall recapture the balance
      of the funds awarded to the recipient: /Provided further,/ That in
      administering funds provided in this heading, 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 imposed by this heading and 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 or
      regulation: /Provided further,/ That, of the funds made available
      under this heading, up to 1 percent shall be available for
      staffing, training, technical assistance, technology, monitoring,
      research and evaluation activities: /Provided further,/ That any
      funds made available under this heading used by the Secretary for
      personnel expenses shall be transferred to and merged with funding
      provided to `Personnel Compensation and Benefits, Office of
      Healthy Homes and Lead Hazard Control': /Provided further,/ That
      any funds made available under this heading used by the Secretary
      for training or other administrative expenses shall be transferred
      to and merged with funding provided to `Administration,
      Operations, and Management', for non-personnel expenses of the
      Department of Housing and Urban Development: /Provided further,/
      That any funds made available under this heading used by the
      Secretary for technology shall be transferred to and merged with
      the funding provided to `Working Capital Fund'./


      /Office of Inspector General/

      / For an additional amount for the necessary salaries and expenses
      of the Office of Inspector General in carrying out the Inspector
      General Act of 1978, as amended, $2,750,000, to remain available
      until September 30, 2011, and an additional $12,250,000 for such
      purposes, to remain available until September 30, 2012:
      /Provided,/ That the Inspector General shall have independent
      authority over all personnel issues within this office./


        /TITLE XIII--HEALTH INFORMATION TECHNOLOGY/


      /SEC. 1301. SHORT TITLE./

      / This title may be cited as the `Health Information Technology
      for Economic and Clinical Health Act' or the `HITECH Act'./


        /Subtitle A--Promotion of Health Information Technology/


    //PART I--IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY//


      /SEC. 13101. 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 and
            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, community mental health center
            (as defined in section 1913(b)), renal dialysis facility,
            blood center, ambulatory surgical center described in
            section 1833(i) of the Social Security Act, emergency
            medical services provider, 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, 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' includes hardware, software,
            integrated technologies and related licenses, intellectual
            property, upgrades, and packaged solutions sold as services
            for use by health care entities for the electronic creation,
            maintenance, access 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,
            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 early detection, prevention, and management
            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--/

                  / `(A) 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;/

                  / `(B) make such determinations under subparagraph
                  (A), and report to the Secretary such determinations,
                  not later than 45 days after the date the
                  recommendation is received by the Coordinator;/

                  / `(C) review Federal health information technology
                  investments to ensure that Federal health information
                  technology programs are meeting the objectives of the
                  strategic plan published under paragraph (3); and/

                  / `(D) provide comments and advice regarding specific
                  Federal health information technology programs, at the
                  request of the Office of Management and Budget./

            / `(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, increasing prevention and coordination
                        with community resources, and improving the
                        continuity of care among health care settings./

                        / `(viii) Specific plans for ensuring that
                        populations with unique needs, such as children,
                        are appropriately addressed in the technology
                        design, as appropriate, which may include
                        technology that automates enrollment and
                        retention for eligible individuals./

                  / `(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) HARMONIZATION- The Secretary may recognize an entity
            or entities for the purpose of harmonizing or updating
            standards and implementation specifications in order to
            achieve uniform and consistent implementation of the
            standards and implementation specifications./

            / `(6) CERTIFICATION- /

                  / `(A) IN GENERAL- The National Coordinator, in
                  consultation with the Director of the National
                  Institute of Standards and Technology, shall recognize
                  a program or programs for the voluntary certification
                  of health information technology as being in
                  compliance with applicable certification criteria
                  adopted under this subtitle. Such program shall
                  include, as appropriate, testing of the technology in
                  accordance with section 14201(b) of the Health
                  Information Technology for Economic and Clinical
                  Health 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, and the use of health information
                  technology to reduce and better manage chronic diseases./

                  / `(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--/

                        / (i) the required level of Federal funding;/

                        / (ii) expectations for regional, State, and
                        private investment;/

                        / (iii) the expected contributions by volunteers
                        to activities for the utilization of such
                        records; and/

                        / (iv) the resources needed to establish or
                        expand education programs in medical and health
                        informatics and health information management to
                        train health care and information technology
                        students and provide a health information
                        technology workforce sufficient to ensure the
                        rapid and effective deployment and utilization
                        of health information technologies./

            / `(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, reducing
                        chronic disease, and by advancing research and
                        education./

                        / `(vi) The use of electronic systems to ensure
                        the comprehensive collection of patient
                        demographic data, including, at a minimum, race,
                        ethnicity, primary language, and gender
                        information./

                        / `(vii) Technologies and design features that
                        address the needs of children and other
                        vulnerable populations./

                  / `(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) Methods to facilitate secure access by
                        an individual to such individual's protected
                        health information./

                        / `(ix) Methods, guidelines, and safeguards to
                        facilitate secure access to patient information
                        by a family member, caregiver, or guardian
                        acting on behalf of a patient due to age-related
                        and other disability, cognitive impairment, or
                        dementia that prevents a patient from accessing
                        the patient's individually identifiable health
                        information./

                        / `(x) 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)./

            / `(4) CONSISTENCY WITH EVALUATION CONDUCTED UNDER MIPPA- /

                  / `(A) REQUIREMENT FOR CONSISTENCY- The HIT Policy
                  Committee shall ensure that recommendations made under
                  paragraph (2)(B)(vi) are consistent with the
                  evaluation conducted under section 1809(a) of the
                  Social Security Act./

                  / `(B) SCOPE- Nothing in subparagraph (A) shall be
                  construed to limit the recommendations under paragraph
                  (2)(B)(vi) to the elements described in section
                  1809(a)(3) of the Social Security Act./

                  / `(C) TIMING- The requirement under subparagraph (A)
                  shall be applicable to the extent that evaluations
                  have been conducted under section 1809(a) of the
                  Social Security Act, regardless of whether the report
                  described in subsection (b) of such section has been
                  submitted./

      / `(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 HIT Policy Committee shall be
            composed of members to be appointed as follows:/

                  / `(A) One member shall be appointed by the Secretary./

                  / `(B) One member shall be appointed by the Secretary
                  of Veterans Affairs who shall represent the Department
                  of Veterans Affairs./

                  / `(C) One member shall be appointed by the Secretary
                  of Defense who shall represent the Department of Defense./

                  / `(D) One member shall be appointed by the Majority
                  Leader of the Senate./

                  / `(E) One member shall be appointed by the Minority
                  Leader of the Senate./

                  / `(F) One member shall be appointed by the Speaker of
                  the House of Representatives./

                  / `(G) One member shall be appointed by the Minority
                  Leader of the House of Representatives./

                  / `(H) Eleven members shall be appointed by the
                  Comptroller General of the United States, of whom--/

                        / `(i) three members shall represent patients or
                        consumers;/

                        / `(ii) one member shall represent health care
                        providers;/

                        / `(iii) one member shall be from a labor
                        organization representing health care workers;/

                        / `(iv) one member shall have expertise in
                        privacy and security;/

                        / `(v) one member shall have expertise in
                        improving the health of vulnerable populations;/

                        / `(vi) one member shall represent health plans
                        or other third party payers;/

                        / `(vii) one member shall represent information
                        technology vendors;/

                        / `(viii) one member shall represent purchasers
                        or employers; and/

                        / `(ix) one member shall have expertise in
                        health care quality measurement and reporting./

            / `(3) CHAIRPERSON AND VICE CHAIRPERSON- The HIT Policy
            Committee shall designate one member to serve as the
            chairperson and one member to serve as the vice chairperson
            of the Policy Committee./

            / `(4) NATIONAL COORDINATOR- The National Coordinator shall
            serve as a member of the HIT Policy Committee and act as a
            liaison among the HIT Policy Committee, the HIT Standards
            Committee, and the Federal Government./

            / `(5) PARTICIPATION- The members of the HIT Policy
            Committee appointed under paragraph (2) shall represent a
            balance among various sectors of the health care system so
            that no single sector unduly influences the recommendations
            of the Policy Committee./

            / `(6) TERMS- /

                  / `(A) IN GENERAL- The terms of the members of the HIT
                  Policy Committee shall be for 3 years, except that the
                  Comptroller General shall designate staggered terms
                  for the members first appointed./

                  / `(B) VACANCIES- Any member appointed to fill a
                  vacancy in the membership of the HIT Policy Committee
                  that occurs prior to the expiration of the term for
                  which the member's predecessor was appointed shall be
                  appointed only for the remainder of that term. A
                  member may serve after the expiration of that member's
                  term until a successor has been appointed. A vacancy
                  in the HIT Policy Committee shall be filled in the
                  manner in which the original appointment was made./

            / `(7) OUTSIDE INVOLVEMENT- The HIT Policy Committee shall
            ensure an adequate opportunity for the participation of
            outside advisors, including individuals with expertise in--/

                  / `(A) health information privacy and security;/

                  / `(B) improving the health of vulnerable populations;/

                  / `(C) health care quality and patient safety,
                  including individuals with expertise in the
                  measurement and use of health information technology
                  to capture data to improve health care quality and
                  patient safety;/

                  / `(D) long-term care and aging services;/

                  / `(E) medical and clinical research; and/

                  / `(F) data exchange and developing health information
                  technology standards and new health information
                  technology./

            / `(8) QUORUM- Ten members of the HIT Policy Committee shall
            constitute a quorum for purposes of voting, but a lesser
            number of members may meet and hold hearings./

            / `(9) FAILURE OF INITIAL APPOINTMENT- If, on the date that
            is 45 days after the date of enactment of this title, an
            official authorized under paragraph (2) to appoint one or
            more members of the HIT Policy Committee has not appointed
            the full number of members that such paragraph authorizes
            such official to appoint--/

                  / `(A) the number of members that such official is
                  authorized to appoint shall be reduced to the number
                  that such official has appointed as of that date; and/

                  / `(B) the number prescribed in paragraph (8) as the
                  quorum shall be reduced to the smallest whole number
                  that is greater than one-half of the total number of
                  members who have been appointed as of that date./

            / `(10) 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) STANDARD 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(b)(2). 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 14201 of the
                  Health Information Technology for Economic and
                  Clinical Health 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./

            / `(5) 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./

      / `(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) BROAD PARTICIPATION- There is broad participation in
            the HIT Standards Committee by a variety of public and
            private stakeholders, either through membership in the
            Committee or through another means./

            / `(4) CHAIRPERSON; VICE CHAIRPERSON- The HIT Standards
            Committee may designate one member to serve as the
            chairperson and one member to serve as the vice chairperson./

            / `(5) DEPARTMENT MEMBERSHIP- The Secretary shall be a
            member of the HIT Standards Committee. The National
            Coordinator shall act as a liaison among the HIT Standards
            Committee, the HIT Policy Committee, and the Federal
            Government./

            / `(6) BALANCE AMONG SECTORS- In developing the procedures
            for conducting the activities of the HIT Standards
            Committee, the HIT Standards Committee shall act to ensure a
            balance among various sectors of the health care system so
            that no single sector unduly influences the actions of the
            HIT Standards Committee./

            / `(7) 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) Open and Public Process- In providing for the establishment
      of the HIT Standards Committee pursuant to subsection (a), the
      Secretary shall ensure the following:/

            / `(1) CONSENSUS APPROACH; OPEN PROCESS- The HIT Standards
            Committee shall use a consensus approach and a fair and open
            process to support the development, harmonization, and
            recognition of standards described in subsection (a)(1)./

            / `(2) PARTICIPATION OF OUTSIDE ADVISERS- The HIT Standards
            Committee shall ensure an adequate opportunity for the
            participation of outside advisors, including individuals
            with expertise in--/

                  / `(A) health information privacy;/

                  / `(B) health information security;/

                  / `(C) health care quality and patient safety,
                  including individuals with expertise in utilizing
                  health information technology to improve healthcare
                  quality and patient safety;/

                  / `(D) long-term care and aging services; and/

                  / `(E) data exchange and developing health information
                  technology standards and new health information
                  technology./

            / `(3) OPEN MEETINGS- Plenary and other regularly scheduled
            formal meetings of the HIT Standards Committee (or
            established subgroups thereof) shall be open to the public./

            / `(4) PUBLICATION OF MEETING NOTICES AND MATERIALS PRIOR TO
            MEETINGS- The HIT Standards Committee shall develop and
            maintain an Internet website on which it publishes, prior to
            each meeting, a meeting notice, a meeting agenda, and
            meeting materials./

            / `(5) OPPORTUNITY FOR PUBLIC COMMENT- The HIT Standards
            Committee shall develop a process that allows for public
            comment during the process by which the Entity develops,
            harmonizes, or recognizes standards and implementation
            specifications./

      / `(e) Voluntary Consensus Standard Body- The provisions of
      section 12(d) of the National Technology Transfer and Advancement
      Act of 1995 (15 U.S.C. 272 note) and the Office of Management and
      Budget circular 119 shall apply to the HIT Standards Committee./

      / `(f) 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 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 3003, 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)./

            / `(3) SUBSEQUENT STANDARDS ACTIVITY- The Secretary shall
            adopt additional standards, implementation specifications,
            and certification criteria as necessary and consistent with
            the schedule published under section 3003(b)(2)./


      /`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 13111 of the Health
      Information Technology for Economic and Clinical Health Act./


      /`SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPTED STANDARDS
      AND IMPLEMENTATION SPECIFICATIONS BY PRIVATE ENTITIES./

      / `(a) In General- Except as provided under section 13112 of the
      Health Information Technology for Economic and Clinical Health
      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 and routine updating of qualified electronic health
      record technology (as defined in section 3000) consistent with
      subsections (b) and (c) and make available such qualified
      electronic health record technology unless the Secretary and the
      HIT Policy Committee determine through an assessment 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- Nothing in section 3001 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 13335 is
      consistent with the provisions of section 3001./

      / `(b) National EHealth Collaborative- Nothing in sections 3002 or
      3003 or this subsection shall be construed as prohibiting the
      National eHealth Collaborative from modifying its charter, duties,
      membership, and any other structure or function required to be
      consistent with the requirements of a voluntary consensus
      standards body so as to allow the Secretary to recognize the
      National eHealth Collaborative as the HIT Standards Committee./

      / `(c) Consistency of Recommendations- 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./


      /`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 the Health Information Technology for Economic and
            Clinical Health Act; and/

            / `(2) regulations under such provisions.'./


      /SEC. 13102. 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. 13111. 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(b) of the Public Health
      Service Act, as added by section 13101./

      / (b) Federal Information Collection Activities- With respect to a
      standard or implementation specification adopted under section
      3004(b) of the Public Health Service Act, as added by section
      13101, 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
      13101, shall apply for purposes of this part./


      /SEC. 13112. 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(b) of the Public Health Service Act, as added by
      section 13101./


      /SEC. 13113. 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./


    /GENERAL PROVISIONS--HOPE FOR HOMEOWNERS AMENDMENTS/

      / Sec. 1211. Section 257 of the National Housing Act (12 U.S.C.
      1715z-23), as amended by the Emergency Economic Stabilization Act
      of 2008 (Public Law 110-343), is amended--/

            / (1) in subsection (e)(1)(B), by inserting after `being
            reset,' the following: `or has, due to a decrease in income,';/

            / (2) in subsection (k)(2), by striking `and the mortgagor'
            and all that follows through the end and inserting `shall,
            upon any sale or disposition of the property to which the
            mortgage relates, be entitled to 25 percent of appreciation,
            up to the appraised value of the home at the time when the
            mortgage being refinanced under this section was originally
            made. The Secretary may share any amounts received under
            this paragraph with the holder of the eligible mortgage
            refinanced under this section.';/

            / (3) in subsection (i)--/

                  / (A) by inserting `, after weighing maximization of
                  participation with consideration for the solvency of
                  the program,' after `Secretary shall';/

                  / (B) in paragraph (1), by striking `equal to 3
                  percent' and inserting `not more than 2 percent'; and/

                  / (C) in paragraph (2), by striking `equal to 1.5
                  percent' and inserting `not more than 1 percent'; and/

            / (4) by adding at the end the following:/

      / `(x) Auctions- The Board shall, if feasible, establish a
      structure and organize procedures for an auction to refinance
      eligible mortgages on a wholesale or bulk basis./

      / `(y) Compensation of Servicers- To provide incentive for
      participation in the program under this section, each servicer of
      an eligible mortgage insured under this section shall be paid
      $1,000 for performing services associated with refinancing such
      mortgage, or such other amount as the Board determines is
      warranted. Funding for such compensation shall be provided by
      funds realized through the HOPE bond under subsection (w).'./


        /Subtitle B--Testing of Health Information Technology/


      /SEC. 13201. 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 13101, 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 13101, 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. 13202. 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) may review 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. 13301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS./

      / Title XXX of the Public Health Service Act, as added by section
      13101, 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 of Health and Human Services
      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 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, including community health
            centers receiving assistance under section 330 of the Public
            Health Service Act, covered entities under section 340B of
            such 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./

            / `(6) Promotion of technologies and best practices that
            enhance the protection of health information by all holders
            of individually identifiable health information./

            / `(7) Improve and expand the use of health information
            technology by public health departments./

            / `(8) Provide $300,000,000 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 activities that are
      provided for under laws in effect on the date of 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(b)./

            / `(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 Act, 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
      (d)) 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 (b)./

      / `(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 (c) (regardless of whether such plan
            was prepared using amounts awarded under paragraph (1)); 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 (a)(3) 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;/

            / `(10) establishing and supporting health record banking
            models to further consumer-based consent models that promote
            lifetime access to qualified health records, if such
            activities are included in the plan described in subsection
            (e), and may contain smart card functionality; and/

            / `(11) 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 (a)(2) and (a)(3), 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
            subsection (a) 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 (a)(3) 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 Director 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 3005) applicable to the exchange of
                  information, improves the quality of health care, such
                  as promoting care coordination;/

                  / `(C) comply with such other requirements as the
                  entity or the Secretary may require;/

                  / `(D) include a plan on how healthcare providers
                  involved intend to maintain and support the certified
                  EHR technology over time; and/

                  / `(E) include a plan on how the healthcare 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 (i)./

      / `(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 (a). 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
            (which may include costs associated with upgrading health
            information technology so that it meets criteria necessary
            to be a 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 subsection 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 subsection 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 subsection 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
                  subsection 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,
            increase access to prevention, reduce chronic diseases, 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 title 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 such 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
            healthcare 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 title 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.'./


        /Subtitle D--Privacy/


      /SEC. 13400. 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 13101./

            / (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. 13401. 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, as such provisions are in effect as of the date
      before the enactment of this Act./


      /SEC. 13402. 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 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
            13407(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./

      / (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. 13403. 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. 13404. 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. 13405. 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 13424(c) and the
                  information necessary to improve patient outcomes and
                  to detect, prevent, and manage chronic disease./

                  / (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 13423 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 disclosures must be included in an
            accounting referred to in paragraph (1)(A) and what
            information must be collected about each such disclosure 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 13101. 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 when their
            protected health information was disclosed and to whom it
            was disclosed, and the usefulness of such information to the
            individual, and takes into account the administrative and
            cost burden of accounting for such disclosures./

            / `(3) CONSTRUCTION- Nothing in this subsection shall be
            construed as--/

                  / `(A) requiring a covered entity to account for
                  disclosures of protected health information that are
                  not made by such covered entity; or/

                  / `(B) requiring a business associate of a covered
                  entity to account for disclosures of protected health
                  information that are not made by such business associate./

            / `(4) REASONABLE FEE- A covered entity may impose a
            reasonable fee on an individual for an accounting performed
            under paragraph (1)(B). Any such fee shall not be greater
            than the entity's labor costs in responding to the request./

            / `(5) 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./

                  / `(C) LATER DATE- The Secretary may set an effective
                  date that is later that the date specified under
                  subparagraph (A) or (B) if the Secretary determines
                  that such later date it necessary, but in no case may
                  the date specified under--/

                        / `(i) subparagraph (A) be later than 2018; or/

                        / `(ii) subparagraph (B) be later than 2014./

      / (d) Review of Health Care Operations- Not later than 18 months
      after the date of the enactment of this title, the Secretary shall
      review and evaluate the definition of health care operations under
      section 164.501 of title 45, Code of Federal Regulations, and to
      the extent appropriate, eliminate by regulation 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 shall not require
      that data be de-identified or require valid authorization for use
      or disclosure for activities within a covered entity described in
      paragraph (1) of the definition of health care operations under
      such section 164.501. 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 13424(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. Nothing in this subsection may be
      construed to supersede any provision under subsection (e) or
      section 13406(a)./

      / (e) Prohibition on Sale of Electronic Health Records or
      Protected Health Information Obtained From Electronic Health
      Records- /

            / (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)./

                  / (B) The purpose of the exchange is for the treatment
                  of the individual, subject to any regulation that the
                  Secretary may promulgate to prevent protected health
                  information from inappropriate access, use, or
                  disclosure./

                  / (C) The purpose of the exchange is the health care
                  operation specifically described in subparagraph (iv)
                  of paragraph (6) of the definition of healthcare
                  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- Not later than 18 months after the date
            of enactment of this title, the Secretary shall promulgate
            regulations to carry out this subsection. In promulgating
            such regulations, the Secretary--/

                  / (A) shall evaluate the impact of restricting the
                  exception described in paragraph (2)(A) to require
                  that the price charged for the purposes described in
                  such paragraph reflects the costs of the preparation
                  and transmittal of the data for such purpose, on
                  research or public health activities, including those
                  conducted by or for the use of the Food and Drug
                  Administration; and/

                  / (B) may further restrict the exception described in
                  paragraph (2)(A) to require that the price charged for
                  the purposes described in such paragraph reflects the
                  costs of the preparation and transmittal of the data
                  for such purpose, if the Secretary finds that such
                  further restriction will not impede such research or
                  public health activities./

            / (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)./


      /SEC. 13406. 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 communication by
            a covered entity or business associate that is 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, shall not be considered a health
            care operation for purposes of subpart E of part 164 of
            title 45, Code of Federal Regulations if the covered entity
            receives or has received direct or indirect payment in
            exchange for making such communication, except where--/

                  / (A) such communication describes only a health care
                  item or service that has previously been prescribed
                  for or administered to the recipient of the
                  communication, or a family member of such recipient;/

                  / (B) each of the following conditions apply--/

                        / (i) the communication is made by the covered
                        entity; and/

                        / (ii) the covered entity making such
                        communication 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; or/

                  / (C) each of the following conditions apply--/

                        / (i) the communication is made on behalf of the
                        covered entity;/

                        / (ii) the communication 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; and/

                        / (iii) the business associate making such
                        communication, or the covered entity on behalf
                        of which the communication is made, 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./

      / (c) Effective Date- This section shall apply to contracting
      occurring on or after the effective date specified under section
      13423./


      /SEC. 13407. TEMPORARY BREACH NOTIFICATION REQUIREMENT FOR VENDORS
      OF PERSONAL HEALTH RECORDS AND OTHER NON-HIPAA COVERED ENTITIES./

      / (a) In General- In accordance with subsection (c), each vendor
      of personal health records, following the discovery of a breach of
      security of unsecured PHR identifiable health information that is
      in a personal health record maintained or offered by such vendor,
      and each entity described in clause (ii) or (iii) of section
      13424(b)(1)(A), following the discovery of a breach of security of
      such information that is obtained through a product or service
      provided by such entity, shall--/

            / (1) notify each individual who is a citizen or resident of
            the United States whose unsecured PHR identifiable health
            information was acquired by an unauthorized person as a
            result of such a breach of security; and/

            / (2) notify the Federal Trade Commission./

      / (b) Notification by Third Party Service Providers- A third party
      service provider that provides services to a vendor of personal
      health records or to an entity described in clause (ii) or (iii)
      of section 13424(b)(1)(A) in connection with the offering or
      maintenance of a personal health record or a related product or
      service and that accesses, maintains, retains, modifies, records,
      stores, destroys, or otherwise holds, uses, or discloses unsecured
      PHR identifiable health information in such a record as a result
      of such services shall, following the discovery of a breach of
      security of such information, notify such vendor or entity,
      respectively, of such breach. Such notice shall include the
      identification of each individual whose unsecured PHR identifiable
      health information has been, or is reasonably believed to have
      been, accessed, acquired, or disclosed during such breach./

      / (c) Application of Requirements for Timeliness, Method, and
      Content of Notifications- Subsections (c), (d), (e), and (f) of
      section 13402 shall apply to a notification required under
      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 13402(h)(2)./

                  / (B) EXCEPTION IN CASE TIMELY GUIDANCE NOT ISSUED- In
                  the case that the Secretary does not issue guidance
                  under section 13402(h)(2) by the date specified in
                  such section, for purposes of this section, the term
                  `unsecured PHR identifiable health information' shall
                  mean PHR identifiable health information that is not
                  secured by a technology standard that renders
                  protected health 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 Federal Trade Commission shall, in accordance
            with section 553 of title 5, United States Code, 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. 13408. 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. 13409. 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. 13410. 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:/

      / `(d) Enforcement by State Attorneys General- /

            / `(1) CIVIL ACTION- Except as provided in subsection (b),
            in any case in which the attorney general of a State has
            reason to believe that an interest of one or more of the
            residents of that State has been or is threatened or
            adversely affected by any person who violates a provision of
            this part, the attorney general of the State, as parens
            patriae, may bring a civil action on behalf of such
            residents of the State in a district court of the United
            States of appropriate jurisdiction--/

                  / `(A) to enjoin further such violation by the
                  defendant; or/

                  / `(B) to obtain damages on behalf of such residents
                  of the State, in an amount equal to the amount
                  determined under paragraph (2)./

            / `(2) STATUTORY DAMAGES- /

                  / `(A) IN GENERAL- For purposes of paragraph (1)(B),
                  the amount determined under this paragraph is the
                  amount calculated by multiplying the number of
                  violations by up to $100. For purposes of the
                  preceding sentence, in the case of a continuing
                  violation, the number of violations shall be
                  determined consistent with the HIPAA privacy
                  regulations (as defined in section 1180(b)(3)) for
                  violations of subsection (a)./

                  / `(B) LIMITATION- The total amount of damages imposed
                  on the person for all violations of an identical
                  requirement or prohibition during a calendar year may
                  not exceed $25,000./

                  / `(C) REDUCTION OF DAMAGES- In assessing damages
                  under subparagraph (A), the court may consider the
                  factors the Secretary may consider in determining the
                  amount of a civil money penalty under subsection (a)
                  under the HIPAA privacy regulations./

            / `(3) ATTORNEY FEES- In the case of any successful action
            under paragraph (1), the court, in its discretion, may award
            the costs of the action and reasonable attorney fees to the
            State./

            / `(4) NOTICE TO SECRETARY- The State shall serve prior
            written notice of any action under paragraph (1) upon the
            Secretary and provide the Secretary with a copy of its
            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 (d)';/

                  / (B) in paragraph (2)(A)--/

                        / (i) after `subsection (a)(1)(C),', by striking
                        `a penalty may not be imposed under subsection
                        (a)' and inserting `no penalty may be imposed
                        under subsection (a) and no damages obtained
                        under subsection (d)'; and/

                        / (ii) in clause (ii), by inserting `or damages'
                        after `the penalty';/

                  / (C) in paragraph (2)(B)(i), by striking `The period'
                  and inserting `With respect to the imposition of a
                  penalty by the Secretary under subsection (a), the
                  period'; and/

                  / (D) in paragraph (3), by inserting `and any damages
                  under subsection (d)' after `any penalty under
                  subsection (a)'./

            / (3) EFFECTIVE DATE- The amendments made by this 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:/

      / `(e) 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. 13411. AUDITS./

      / The Secretary shall provide for periodic audits to ensure that
      covered entities and business associates that are subject to the
      requirements of this subtitle and subparts C and E of part 164 of
      title 45, Code of Federal Regulations, as such provisions are in
      effect as of the date of enactment of this Act, comply with such
      requirements./


    //PART II--RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES;
    EFFECTIVE DATE; REPORTS//


      /SEC. 13421. RELATIONSHIP TO OTHER LAWS./

      / (a) Application of Hipaa State Preemption- Section 1178 of the
      Social Security Act (42 U.S.C. 1320d-7) shall apply to a provision
      or requirement under this subtitle in the same manner that such
      section applies to a provision or requirement under part C of
      title XI of such Act or a standard or implementation 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. In carrying out the
      preceding sentence, the Secretary shall revise the definition of
      `psychotherapy notes' in section 164.501 of title 45, Code of
      Federal Regulations, to include test data that is related to
      direct responses, scores, items, forms, protocols, manuals, or
      other materials that are part of a mental health evaluation, as
      determined by the mental health professional providing treatment
      or evaluation./


      /SEC. 13422. REGULATORY REFERENCES./

      / Each reference in this subtitle to a provision of the Code of
      Federal Regulations refers to such provision as in effect on the
      date of the enactment of this title (or to the most recent update
      of such provision)./


      /SEC. 13423. EFFECTIVE DATE./

      / Except as otherwise specifically provided, the provisions of
      part I shall take effect on the date that is 12 months after the
      date of the enactment of this title./


      /SEC. 13424. STUDIES, REPORTS, GUIDANCE./

      / (a) Report on Compliance- /

            / (1) IN GENERAL- For the first year beginning after the
            date of the enactment of this Act and annually thereafter,
            the Secretary shall prepare and submit to the Committee on
            Health, Education, Labor, and Pensions of the Senate and the
            Committee on Ways and Means and the Committee on Energy and
            Commerce of the House of Representatives a report concerning
            complaints of alleged violations of law, including the
            provisions of this subtitle as well as the provisions of
            subparts C and E of part 164 of title 45, Code of Federal
            Regulations, (as such provisions are in effect as of the
            date of enactment of this Act) relating to privacy and
            security of health information that are received by the
            Secretary during the year for which the report is being
            prepared. Each such report shall include, with respect to
            such complaints received during the year--/

                  / (A) the number of such complaints;/

                  / (B) the number of such complaints resolved
                  informally, a summary of the types of such complaints
                  so resolved, and the number of covered entities that
                  received technical assistance from the Secretary
                  during such year in order to achieve compliance with
                  such provisions and the types of such technical
                  assistance provided;/

                  / (C) the number of such complaints that have resulted
                  in the imposition of civil monetary penalties or have
                  been resolved through monetary settlements, including
                  the nature of the complaints involved and the amount
                  paid in each penalty or settlement;/

                  / (D) the number of compliance reviews conducted and
                  the outcome of each such review;/

                  / (E) the number of subpoenas or inquiries issued;/

                  / (F) the Secretary's plan for improving compliance
                  with and enforcement of such provisions for the
                  following year; and/

                  / (G) the number of audits performed and a summary of
                  audit findings pursuant to section 13411./

            / (2) AVAILABILITY TO PUBLIC- Each report under paragraph
            (1) shall be made available to the public on the Internet
            website of the Department of Health and Human Services./

      / (b) Study and Report on Application of Privacy and 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./

      / (e) Report Required- Not later than 1 year after the date of
      enactment of this section, the Government Accountability Office
      shall submit to Congress and the Secretary of Health and Human
      Services a report on the impact of any of the provisions of, or
      amendments made by, this division or division B that are related
      to the Health Insurance Portability and Accountability Act of 1996
      and section 552a of title 5, United States Code, on health
      insurance premiums and overall health care costs./


        /TITLE XIV--STATE FISCAL STABILIZATION/


      /DEPARTMENT OF EDUCATION/


      /State Fiscal Stabilization Fund/

      / For necessary expenses for a State Fiscal Stabilization Fund,
      $39,000,000,000, which shall be administered by the Department of
      Education, and shall be available through September 30, 2010./


      /GENERAL PROVISIONS--THIS TITLE/


      /SEC. 1401. ALLOCATIONS./

      / (a) Outlying Areas- 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 reserve up
      to $25,000,000 for administration and oversight of this title,
      including for program evaluation./

      / (c) Reservation for Additional Programs- After reserving funds
      under subsections (a) and (b), the Secretary shall reserve
      $7,500,000,000 for grants under sections 1406 and 1407./

      / (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 1 year of receiving a grant, and the Secretary
      shall reallocate such funds to the remaining States in accordance
      with subsection (d)./


      /SEC. 1402. STATE USES OF FUNDS./

      / Education Fund- (a) IN GENERAL- The Governor shall use the
      State's allocation under section 1401 for the support of
      elementary, secondary, and postsecondary education and, as
      applicable, early childhood education programs and services./

      / (b) RESTORING 2008 STATE SUPPORT FOR EDUCATION- /

      / (1) IN GENERAL- The Governor shall first use the funds described
      in subsection (a)--/

                  / (A) 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 where applicable, to allow existing
                  State formula increases for fiscal years 2009, 2010,
                  and 2011 to be implemented and allow funding for
                  phasing in State equity and adequacy adjustments that
                  were enacted prior to July 1, 2008; and/

                  / (B) 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./

      / (2) SHORTFALL- If the Governor determines that the amount of
      funds available under subsection (a) is insufficient to restore
      State support for education to the levels described in
      subparagraphs (A) and (B) of paragraph (1), 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./

      / (c) SUBGRANTS TO IMPROVE BASIC PROGRAMS OPERATED BY LOCAL
      EDUCATIONAL AGENCIES- After carrying out subsection (b), the
      Governor shall use any funds remaining under subsection (a) 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./


      /SEC. 1403. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES./

      / (1) 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. 1404. 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. 1405. STATE APPLICATIONS./

      / (a) In General- The Governor of a State desiring to receive an
      allocation under section 1401 shall submit an application at such
      time, in such manner, and containing such information as the
      Secretary may reasonably require./

      / (b) Application- The Governor shall--/

            / (1) include the assurances described in subsection (d);/

            / (2) provide baseline data that demonstrates the State's
            current status in each of the areas described in such
            assurances; and/

            / (3) describe how the State intends to use its allocation./

      / (c) Incentive Grant Application- The Governor of a State seeking
      a grant under section 1406 shall--/

            / (1) submit an application for consideration;/

            / (2) describe the status of the State's progress in each of
            the areas described in subsection (d);/

            / (3) describe the achievement and graduation rates of
            public elementary and secondary school students in the
            State, and the strategies the State is employing to help
            ensure that all subgroups of students identified in
            1111(b)(2) of ESEA in the State continue making progress
            toward meeting the State's student academic achievement
            standards;/

            / (4) describe how the State would use its grant funding to
            improve student academic achievement in the State, including
            how it will allocate the funds to give priority to high-need
            schools and local educational agencies; and/

            / (5) include a plan for evaluating its progress in closing
            achievement gaps./

      / (d) Assurances- An application under subsection (b) shall
      include the following assurances:/

            / (1) MAINTENANCE OF EFFORT- /

                  / (A) ELEMENTARY AND SECONDARY EDUCATION- The State
                  will, in each of fiscal years 2009 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 action, including activities outlined in section
            2113(c) of ESEA, to increase the number, and improve the
            distribution, of effective teachers and principals in
            high-poverty schools and local educational agencies
            throughout the State./

            / (3) IMPROVING COLLECTION AND USE OF DATA- The State will
            establish a longitudinal data system that includes the
            elements described in section 6401(e)(2)(D) of the America
            COMPETES Act (20 U.S.C. 9871)./

            / (4) STANDARDS AND ASSESSMENTS- The State--/

                  / (A) will enhance the quality of 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));/

                  / (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; and/

                  / (C) will take steps to improve State academic
                  content standards and student academic achievement
                  standards consistent with 6401(e)(1)(A)(ii) of the
                  America COMPETES Act./

            / (5) will ensure compliance with the requirements of
            section 1116(a)(7)(C)(iv) and section 1116(a)(8)(B) with
            respect to schools identified under such sections./


      /SEC. 1406. STATE INCENTIVE GRANTS./

      / (a) In General- From the total amount reserved under section
      1401(c) that is not used for section 1407, the Secretary shall, in
      fiscal year 2010, make grants to States that have made significant
      progress in meeting the objectives of paragraphs (2), (3), (4),
      and (5) of section 1405(d)./

      / (b) Basis for Grants- The Secretary shall determine which States
      receive grants under this section, and the amount of those grants,
      on the basis of information provided in State applications under
      section 1405 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. 1407. INNOVATION FUND./

      / (a) In General- /

            / (1) ELIGIBLE ENTITY- For the purposes of this section, the
            term `eligible entity' means--/

                  / (A) A local educational agency; or/

                  / (B) a partnership between a nonprofit organization
                  and--/

                        / (i) one or more local educational agencies;/

                        / (ii) or a consortium of schools./

            / (2) PROGRAM ESTABLISHED- From the total amount reserved
            under section 1401(c), the Secretary may reserve up to
            $650,000,000 to establish an Innovation Fund, which shall
            consist of academic achievement awards that recognize
            eligible entities that meet the requirements described in
            subsection (b)./

            / (3) BASIS FOR AWARDS- The Secretary shall make awards to
            eligible entities that have made significant gains in
            closing the achievement gap as described in subsection (b)(1)--/

                  / (A) to allow such eligible entities to expand their
                  work and serve as models for best practices;/

                  / (B) to allow such eligible entities to work in
                  partnership with the private sector and the
                  philanthropic community; and/

                  / (C) to identify and document best practices that can
                  be shared, and taken to scale based on demonstrated
                  success./

      / (b) Eligibility- To be eligible for such an award, an eligible
      entity shall--/

            / (1) have significantly closed the achievement gaps between
            groups of students described in section 1111(b)(2) of 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. 1408. STATE REPORTS./

      / 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. 1409. EVALUATION./

      / The Comptroller General of the United States shall conduct
      evaluations of the programs under sections 1406 and 1407 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. 1410. 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
      the State reports, that evaluates the information provided in the
      State reports under section 1408./


      /SEC. 1411. 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, unless such funds are used to
      provide special education and related services to children with
      disabilities, as authorized by the Individuals with Disabilities
      Education Act (20 U.S.C. 1400 et seq.)./


      /SEC. 1412. 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 that is defined in section 9101 of ESEA
            (20 U.S.C. 7801) shall have the meaning given the term in
            such section./


      /SEC. 1413. REGULATORY RELIEF./

      / (a) Waiver Authority- Subject to subsections (b) and (c), the
      Secretary of Education may, as applicable, waive or modify, in
      order to ease fiscal burdens, any requirement relating to the
      following:/

            / (1) Maintenance of effort./

            / (2) The use of Federal funds to supplement, not supplant,
            non-Federal funds./

      / (b) Duration- A waiver under this section shall be for fiscal
      years 2009 and 2010./

      / (c) Limitations- /

            / (1) RELATION TO IDEA- Nothing in this section shall be
            construed to permit the Secretary to waive or modify any
            provision of the Individuals with Disabilities Education Act
            (20 U.S.C. 1400 et seq.), except as described in a(1) and a(2)./

            / (2) MAINTENANCE OF EFFORT- If the Secretary grants a
            waiver or modification under this section waiving or
            modifying a requirement relating to maintenance of effort
            for fiscal years 2009 and 2010, the level of effort required
            for fiscal year 2011 shall not be reduced because of the
            waiver or modification./


        /TITLE XV--RECOVERY ACCOUNTABILITY AND TRANSPARENCY BOARD AND
        RECOVERY INDEPENDENT ADVISORY PANEL/


      /SEC. 1501. DEFINITIONS./

      / In this title:/

            / (1) AGENCY- The term `agency' has the meaning given under
            section 551 of title 5, United States Code./

            / (2) BOARD- The term `Board' means the Recovery
            Accountability and Transparency Board established in section
            1511./

            / (3) CHAIRPERSON- The term `Chairperson' means the
            Chairperson of the Board./

            / (4) COVERED FUNDS- The term `covered funds' means any
            funds that are expended or obligated--/

                  / (A) from appropriations made under this Act; and/

                  / (B) under any other authorities provided under this
                  Act./

            / (5) PANEL- The term `Panel' means the Recovery Independent
            Advisory Panel established in section 1531./


        /Subtitle A--Recovery Accountability and Transparency Board/


      /SEC. 1511. ESTABLISHMENT OF THE RECOVERY ACCOUNTABILITY AND
      TRANSPARENCY BOARD./

      / There is established the Recovery Accountability and
      Transparency Board to coordinate and conduct oversight of covered
      funds to prevent fraud, waste, and abuse./


      /SEC. 1512. COMPOSITION OF BOARD./

      / (a) Chairperson- /

            / (1) DESIGNATION OR APPOINTMENT- The President shall--/

                  / (A) designate the Deputy Director for Management of
                  the Office of Management and Budget to serve as
                  Chairperson of the Board;/

                  / (B) designate another Federal officer who was
                  appointed by the President to a position that required
                  the advice and consent of the Senate, to serve as
                  Chairperson of the Board; or/

                  / (C) appoint an individual as the Chairperson of the
                  Board, by and with the advice and consent of the Senate./

            / (2) COMPENSATION- /

                  / (A) DESIGNATION OF FEDERAL OFFICER- If the President
                  designates a Federal officer under paragraph (1)(A) or
                  (B) to serve as Chairperson, that Federal officer may
                  not receive additional compensation for services
                  performed as Chairperson./

                  / (B) APPOINTMENT OF NON-FEDERAL OFFICER- If the
                  President appoints an individual as Chairperson under
                  paragraph (1)(C), that individual shall be compensated
                  at the rate of basic pay prescribed for level IV of
                  the Executive Schedule under section 5315 of title 5,
                  United States Code./

      / (b) Members- The members of the Board shall include--/

            / (1) the Inspectors General of the Departments of
            Agriculture, Commerce, Education, Energy, Health and Human
            Services, Homeland Security, Justice, Transportation,
            Treasury, and the Treasury Inspector General for Tax
            Administration; and/

            / (2) any other Inspector General as designated by the
            President from any agency that expends or obligates covered
            funds./


      /SEC. 1513. FUNCTIONS OF THE BOARD./

      / (a) Functions- /

            / (1) IN GENERAL- The Board shall coordinate and conduct
            oversight of covered funds in order to prevent fraud, waste,
            and abuse./

            / (2) SPECIFIC FUNCTIONS- The functions of the Board shall
            include--/

                  / (A) reviewing whether the reporting of contracts and
                  grants using covered funds meets applicable standards
                  and specifies the purpose of the contract or grant and
                  measures of performance;/

                  / (B) reviewing whether competition requirements
                  applicable to contracts and grants using covered funds
                  have been satisfied;/

                  / (C) auditing and investigating covered funds to
                  determine whether wasteful spending, poor contract or
                  grant management, or other abuses are occurring;/

                  / (D) reviewing whether there are sufficient qualified
                  acquisition and grant personnel overseeing covered funds;/

                  / (E) reviewing whether personnel whose duties involve
                  acquisitions or grants made with covered funds receive
                  adequate training; and/

                  / (F) reviewing whether there are appropriate
                  mechanisms for interagency collaboration relating to
                  covered funds./

      / (b) Reports- /

            / (1) QUARTERLY REPORTS- The Board shall submit quarterly
            reports to the President and Congress, including the
            Committees on Appropriations of the Senate and House of
            Representatives, summarizing the findings of the Board and
            the findings of inspectors general of agencies. The Board
            may submit additional reports as appropriate./

            / (2) ANNUAL REPORTS- The Board shall submit annual reports
            to the President and the Committees on Appropriations of the
            Senate and House of Representatives, consolidating
            applicable quarterly reports on the use of covered funds./

            / (3) PUBLIC AVAILABILITY- /

                  / (A) IN GENERAL- All reports submitted under this
                  subsection shall be made publicly available and posted
                  on a website established by the Board./

                  / (B) REDACTIONS- Any portion of a report submitted
                  under this subsection may be redacted when made
                  publicly available, if that portion would disclose
                  information that is not subject to disclosure under
                  section 552 of title 5, United States Code (commonly
                  known as the Freedom of Information Act)./

      / (c) Recommendations- /

            / (1) IN GENERAL- The Board shall make recommendations to
            agencies on measures to prevent fraud, waste, and abuse
            relating to covered funds./

            / (2) RESPONSIVE REPORTS- Not later than 30 days after
            receipt of a recommendation under paragraph (1), an agency
            shall submit a report to the President, the congressional
            committees of jurisdiction, including the Committees on
            Appropriations of the Senate and House of Representatives,
            and the Board on--/

                  / (A) whether the agency agrees or disagrees with the
                  recommendations; and/

                  / (B) any actions the agency will take to implement
                  the recommendations./


      /SEC. 1514. POWERS OF THE BOARD./

      / (a) In General- The Board shall conduct, supervise, and
      coordinate audits and investigations by inspectors general of
      agencies relating to covered funds./

      / (b) Audits and Investigations- The Board may--/

            / (1) conduct its own independent audits and investigations
            relating to covered funds; and/

            / (2) collaborate on audits and investigations relating to
            covered funds with any inspector general of an agency./

      / (c) Authorities- /

            / (1) AUDITS AND INVESTIGATIONS- In conducting audits and
            investigations, the Board shall have the authorities
            provided under section 6 of the Inspector General Act of
            1978 (5 U.S.C. App.)./

            / (2) STANDARDS AND GUIDELINES- The Board shall carry out
            the powers under subsections (a) and (b) in accordance with
            section 4(b)(1) of the Inspector General Act of 1978 (5
            U.S.C. App.)./

      / (d) Public Hearings- The Board may hold public hearings and
      Board personnel may conduct investigative depositions. The head of
      each agency shall make all officers and employees of that agency
      available to provide testimony to the Board and Board personnel.
      The Board may issue subpoenas to compel the testimony of persons
      who are not Federal officers or employees. Any such subpoenas may
      be enforced as provided under section 6 of the Inspector General
      Act of 1978 (5 U.S.C. App.)./

      / (e) Contracts- The Board may enter into contracts to enable the
      Board to discharge its duties under this subtitle, including
      contracts and other arrangements for audits, studies, analyses,
      and other services with public agencies and with private persons,
      and make such payments as may be necessary to carry out the duties
      of the Board./

      / (f) Transfer of Funds- The Board may transfer funds appropriated
      to the Board for expenses to support administrative support
      services and audits or investigations of covered funds to any
      office of inspector general, the Office of Management and Budget,
      the General Services Administration, and the Panel./


      /SEC. 1515. EMPLOYMENT, PERSONNEL, AND RELATED AUTHORITIES./

      / (a) Employment and Personnel Authorities- /

            / (1) IN GENERAL- /

                  / (A) AUTHORITIES- Subject to paragraph (2), the Board
                  may exercise the authorities of subsections (b)
                  through (i) of section 3161 of title 5, United States
                  Code (without regard to subsection (a) of that section)./

                  / (B) APPLICATION- For purposes of exercising the
                  authorities described under subparagraph (A), the term
                  `Chairperson of the Board' shall be substituted for
                  the term `head of a temporary organization'./

                  / (C) CONSULTATION- In exercising the authorities
                  described under subparagraph (A), the Chairperson
                  shall consult with members of the Board./

            / (2) EMPLOYMENT AUTHORITIES- In exercising the employment
            authorities under subsection (b) of section 3161 of title 5,
            United States Code, as provided under paragraph (1) of this
            subsection--/

                  / (A) paragraph (2) of subsection (b) of section 3161
                  of that title (relating to periods of appointments)
                  shall not apply; and/

                  / (B) no period of appointment may exceed the date on
                  which the Board terminates under section 1521./

      / (b) Information and Assistance- /

            / (1) IN GENERAL- Upon request of the Board for information
            or assistance from any agency or other entity of the Federal
            Government, the head of such entity shall, insofar as is
            practicable and not in contravention of any existing law,
            furnish such information or assistance to the Board, or an
            authorized designee./

            / (2) REPORT OF REFUSALS- Whenever information or assistance
            requested by the Board is, in the judgment of the Board,
            unreasonably refused or not provided, the Board shall report
            the circumstances to the congressional committees of
            jurisdiction, including the Committees on Appropriations of
            the Senate and House of Representatives, without delay./

      / (c) Administrative Support- The General Services Administration
      shall provide the Board with administrative support services,
      including the provision of office space and facilities./


      /SEC. 1516. INDEPENDENCE OF INSPECTORS GENERAL./

      / (a) Independent Authority- Nothing in this subtitle shall affect
      the independent authority of an inspector general to determine
      whether to conduct an audit or investigation of covered funds./

      / (b) Requests by Board- If the Board requests that an inspector
      general conduct or refrain from conducting an audit or
      investigation and the inspector general rejects the request in
      whole or in part, the inspector general shall, not later than 30
      days after rejecting the request, submit a report to the Board,
      the head of the applicable agency, and the congressional
      committees of jurisdiction, including the Committees on
      Appropriations of the Senate and House of Representatives. The
      report shall state the reasons that the inspector general has
      rejected the request in whole or in part./


      /SEC. 1517. 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. 1518. PROTECTING STATE AND LOCAL GOVERNMENT AND CONTRACTOR
      WHISTLEBLOWERS./

      / (a) Prohibition of Reprisals- An employee of any non-Federal
      employer receiving covered funds 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 the head of a Federal agency, or their
      representatives, information that the employee reasonably believes
      is evidence of--/

            / (1) gross mismanagement of an agency contract or grant
            relating to covered funds;/

            / (2) a gross waste of covered funds;/

            / (3) a substantial and specific danger to public health or
            safety; or/

            / (4) a violation of law related to an agency contract
            (including the competition for or negotiation of a contract)
            or grant, awarded or issued relating to covered funds./

      / (b) Investigation of Complaints- /

            / (1) IN GENERAL- A person who believes that the person has
            been subjected to a reprisal prohibited by subsection (a)
            may submit a complaint to the appropriate inspector general.
            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 appropriate agency,
            and the Board./

            / (2) TIME LIMITATIONS FOR ACTIONS- /

                  / (A) IN GENERAL- 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) EXTENSION- If the inspector general is unable to
                  complete an investigation in time to submit a report
                  within the 180-day period specified under subparagraph
                  (A) and the person submitting the complaint agrees to
                  an extension of time, the inspector general shall
                  submit a report under paragraph (1) within such
                  additional period of time as shall be agreed upon
                  between the inspector general and the person
                  submitting the complaint./

      / (c) Remedy and Enforcement Authority- /

            / (1) AGENCY ACTION- Not later than 30 days after receiving
            an inspector general report under subsection (b), the head
            of the agency concerned shall determine whether there is
            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 1 or more of the following actions:/

                  / (A) Order the employer to take affirmative action to
                  abate the reprisal./

                  / (B) Order the employer to reinstate the person to
                  the position that the person held before the reprisal,
                  together with the compensation (including back pay),
                  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) CIVIL ACTION- If the head of an 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 subsection (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) EVIDENCE- 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 in accordance with this subsection./

            / (4) JUDICIAL ENFORCEMENT OF ORDER- 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) JUDICIAL REVIEW- 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, United States
            Code./

      / (d) Rule of 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./


      /SEC. 1519. BOARD WEBSITE./

      / (a) Establishment- The Board shall establish and maintain a
      user-friendly, public-facing website to foster greater
      accountability and transparency in the use of covered funds./

      / (b) Purpose- The website established and maintained under
      subsection (a) shall be a portal or gateway to key information
      relating to this Act and provide connections to other Government
      websites with related information./

      / (c) Content and Function- In establishing the website
      established and maintained under subsection (a), the Board shall
      ensure the following:/

            / (1) The website shall provide materials explaining what
            this Act means for citizens. The materials shall be easy to
            understand and regularly updated./

            / (2) The website shall provide accountability information,
            including 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
            of covered funds./

            / (4) The website shall provide detailed data on contracts
            awarded by the Government that expend covered funds,
            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 covered
            funds 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 that expend
            covered funds./

            / (7) The website shall be enhanced and updated as necessary
            to carry out the purposes of this subtitle./

      / (d) Waiver- The Board may exclude posting contractual or other
      information on the website on a case-by-case basis when necessary
      to protect national security./


      /SEC. 1520. AUTHORIZATION OF APPROPRIATIONS./

      / There are authorized to be appropriated such sums as necessary
      to carry out this subtitle./


      /SEC. 1521. TERMINATION OF THE BOARD./

      / The Board shall terminate on September 30, 2012./


        /Subtitle B--Recovery Independent Advisory Panel/


      /SEC. 1531. ESTABLISHMENT OF RECOVERY INDEPENDENT ADVISORY PANEL./

      / (a) Establishment- There is established the Recovery Independent
      Advisory Panel./

      / (b) Membership- The Panel shall be composed of 5 members who
      shall be appointed by the President./

      / (c) Qualifications- Members shall be appointed on the basis of
      expertise in economics, public finance, contracting, accounting,
      or any other relevant field./

      / (d) Initial Meeting- Not later than 30 days after the date on
      which all members of the Panel have been appointed, the Panel
      shall hold its first meeting./

      / (e) Meetings- The Panel shall meet at the call of the
      Chairperson of the Panel./

      / (f) Quorum- A majority of the members of the Panel shall
      constitute a quorum, but a lesser number of members may hold
      hearings./

      / (g) Chairperson and Vice Chairperson- The Panel shall select a
      Chairperson and Vice Chairperson from among its members./


      /SEC. 1532. DUTIES OF THE PANEL./

      / The Panel shall make recommendations to the Board on actions the
      Board could take to prevent fraud, waste, and abuse relating to
      covered funds./


      /SEC. 1533. POWERS OF THE PANEL./

      / (a) Hearings- The Panel may hold such hearings, sit and act at
      such times and places, take such testimony, and receive such
      evidence as the Panel considers advisable to carry out this subtitle./

      / (b) Information From Federal Agencies- The Panel may secure
      directly from any agency such information as the Panel considers
      necessary to carry out this subtitle. Upon request of the
      Chairperson of the Panel, the head of such agency shall furnish
      such information to the Panel./

      / (c) Postal Services- The Panel may use the United States mails
      in the same manner and under the same conditions as agencies of
      the Federal Government./

      / (d) Gifts- The Panel may accept, use, and dispose of gifts or
      donations of services or property./


      /SEC. 1534. PANEL PERSONNEL MATTERS./

      / (a) Compensation of Members- Each member of the Panel who is not
      an officer or employee of the Federal Government shall be
      compensated at a rate equal to the daily equivalent of the annual
      rate of basic pay prescribed for level IV of the Executive
      Schedule under section 5315 of title 5, United States Code, for
      each day (including travel time) during which such member is
      engaged in the performance of the duties of the Panel. All members
      of the Panel who are officers or employees of the United States
      shall serve without compensation in addition to that received for
      their services as officers or employees of the United States./

      / (b) Travel Expenses- The members of the Panel shall be allowed
      travel expenses, including per diem in lieu of subsistence, at
      rates authorized for employees of agencies under subchapter I of
      chapter 57 of title 5, United States Code, while away from their
      homes or regular places of business in the performance of services
      for the Panel./

      / (c) Staff- /

            / (1) IN GENERAL- The Chairperson of the Panel may, without
            regard to the civil service laws and regulations, appoint
            and terminate an executive director and such other
            additional personnel as may be necessary to enable the Panel
            to perform its duties. The employment of an executive
            director shall be subject to confirmation by the Panel./

            / (2) COMPENSATION- The Chairperson of the Panel may fix the
            compensation of the executive director and other personnel
            without regard to chapter 51 and subchapter III of chapter
            53 of title 5, United States Code, relating to
            classification of positions and General Schedule pay rates,
            except that the rate of pay for the executive director and
            other personnel may not exceed the rate payable for level V
            of the Executive Schedule under section 5316 of such title./

            / (3) PERSONNEL AS FEDERAL EMPLOYEES- /

                  / (A) IN GENERAL- The executive director and any
                  personnel of the Panel who are employees shall be
                  employees under section 2105 of title 5, United States
                  Code, for purposes of chapters 63, 81, 83, 84, 85, 87,
                  89, 89A, 89B, and 90 of that title./

                  / (B) MEMBERS OF PANEL- Subparagraph (A) shall not be
                  construed to apply to members of the Panel./

      / (d) Detail of Government Employees- Any Federal Government
      employee may be detailed to the Panel without reimbursement, and
      such detail shall be without interruption or loss of civil service
      status or privilege./

      / (e) Procurement of Temporary and Intermittent Services- The
      Chairperson of the Panel may procure temporary and intermittent
      services under section 3109(b) of title 5, United States Code, at
      rates for individuals which do not exceed the daily equivalent of
      the annual rate of basic pay prescribed for level V of the
      Executive Schedule under section 5316 of such title./

      / (f) Administrative Support- The General Services Administration
      shall provide the Board with administrative support services,
      including the provision of office space and facilities./


      /SEC. 1535. TERMINATION OF THE PANEL./

      / The Panel shall terminate on September 30, 2012./


      /SEC. 1536. AUTHORIZATION OF APPROPRIATIONS./

      / There are authorized to be appropriated such sums as necessary
      to carry out this subtitle./


        /Subtitle C--Reports of the Council of Economic Advisers/


      /SEC. 1541. REPORTS OF THE COUNCIL OF ECONOMIC ADVISERS./

      / (a) In General- In consultation with the Director of the Office
      of Management and Budget and the Secretary of the Treasury, the
      Chairperson of the Council of Economic Advisers shall submit to
      the Committees on Appropriations of the Senate and House of
      Representatives quarterly reports based on the reports required
      under section 1551 that detail the impact of programs funded
      through covered funds on employment, estimated economic growth,
      and other key economic indicators./

      / (b) Submission of Reports- /

            / (1) FIRST REPORT- The first report submitted under
            subsection (a) shall be submitted not later than 45 days
            after the end of the first full quarter following the date
            of enactment of this Act./

            / (2) LAST REPORT- The last report required to be submitted
            under subsection (a) shall apply to the quarter in which the
            Board terminates under section 1521./


        /Subtitle D--Reports on Use of Funds/


      /SEC. 1551. REPORTS ON USE OF FUNDS./

      / (a) Short Title- This section may be cited as the `Jobs
      Accountability Act'./

      / (b) Definitions- In this section:/

            / (1) AGENCY- The term `agency' has the meaning given under
            section 551 of title 5, United States Code./

            / (2) RECIPIENT- The term `recipient'--/

                  / (A) means any entity that receives recovery funds
                  (including recovery funds received through grant,
                  loan, or contract) other than an individual; and/

                  / (B) includes a State that receives recovery funds./

            / (3) RECOVERY FUNDS- The term `recovery funds' means any
            funds that are made available--/

                  / (A) from appropriations made under this Act; and/

                  / (B) under any other authorities provided under this
                  Act./

      / (c) Recipient Reports- Not later than 10 days after the end of
      each calendar quarter, each recipient that received recovery funds
      from an agency shall submit a report to that agency that contains--/

            / (1) the total amount of recovery funds received from that
            agency;/

            / (2) the amount of recovery funds received that were
            expended or obligated to projects or activities; and/

            / (3) a detailed list of all projects or activities for
            which recovery funds were expended or obligated, including--/

                  / (A) the name of the project or activity;/

                  / (B) a description of the project or activity;/

                  / (C) an evaluation of the completion status of the
                  project or activity; and/

                  / (D) an analysis of the number of jobs created and
                  the number of jobs retained by the project or activity./

      / (d) Agency Reports- Not later than 30 days after the end of each
      calendar quarter, each agency that made recovery funds available
      to any recipient shall make the information in reports submitted
      under subsection (c) publicly available by posting the information
      on a website./

      / (e) Other Reports- The Congressional Budget Office and the
      Government Accountability Office shall comment on the information
      described in subsection (c)(3)(D) for any reports submitted under
      subsection (c). Such comments shall be due within 7 days after
      such reports are submitted./


      /TITLE XVI--GENERAL PROVISIONS--THIS ACT/


      /emergency designation/

      / Sec. 1601. 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./


      /availability/

      / Sec. 1602. No part of any appropriation contained in this Act
      shall remain available for obligation beyond the current fiscal
      year unless expressly so provided herein./


      /relationship to other appropriations/

      / Sec. 1603. 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)./


      /buy american/

      / Sec. 1604. Use of American Iron, Steel, and Manufactured Goods.
      (a) None of the funds appropriated or otherwise made available by
      this Act may be used for a project for the construction,
      alteration, maintenance, or repair of a public building or public
      work unless all of the iron, steel, and manufactured goods used in
      the project are produced in the United States./

      / (b) Subsection (a) shall not apply in any case in which the head
      of the Federal department or agency involved finds that--/

            / (1) applying subsection (a) would be inconsistent with the
            public interest;/

            / (2) iron, steel, and the relevant manufactured goods are
            not produced in the United States if sufficient and
            reasonably available quantities and of a satisfactory
            quality; or/

            / (3) inclusion of iron, steel, and manufactured goods
            produced in the United States will increase the cost of the
            overall project by more than 25 percent./

      / (c) If the head of a Federal department or agency determines
      that it is necessary to waive the application of subsection (a)
      based on a finding under subsection (b), the head of the
      department or agency shall publish in the Federal Register a
      detailed written jurisdiction as to why the provision is being
      waived./

      / (d) This section shall be applied in a manner consistent with
      United States obligations under international agreements./


      /certification/

      / Sec. 1605. With respect to funds in titles I though XVI of this
      Act made available to State, or local government agencies, the
      Governor, mayor, or other chief executive, as appropriate, shall
      certify 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./


      /economic stabilization contracting/

      / Sec. 1606. Reform of Contracting Procedures Under EESA. Section
      107(b) of the Emergency Economic Stabilization Act of 2008 (12
      U.S.C. 5217(b)) is amended by inserting `and individuals with
      disabilities and businesses owned by individuals with disabilities
      (for purposes of this subsection the term `individual with
      disability' has the same meaning as the term `handicapped
      individual' as that term is defined in section 3(f) of the Small
      Business Act (15 U.S.C. 632(f)),' after `(12 U.S.C. 1441a(r)(4)),'./

      / Sec. 1607. Findings- /

            / (1) The National Environmental Policy Act protects public
            health, safety and environmental quality: by ensuring
            transparency, accountability and public involvement in
            federal actions and in the use of public funds;/

            / (2) When President Nixon signed the National Environmental
            Policy Act into law on January 1, 1970, he said that the Act
            provided the `direction' for the country to `regain a
            productive harmony between man and nature';/

            / (3) The National Environmental Policy Act helps to provide
            an orderly process for considering federal actions and
            funding decisions and prevents ligation and delay that would
            otherwise be inevitable and existed prior to the
            establishment of the National Environmental Policy Act./

      / (a) Adequate resources within this bill must be devoted to
      ensuring that applicable environmental reviews under the National
      Environmental Policy Act are completed on an expeditious basis and
      that the shortest existing applicable process under the National
      Environmental Policy Act shall be utilized./

      / (b) The President shall report to the Senate Environment and
      Public Works Committee and the House Natural Resources Committee
      every 90 days following the date of enactment until September 30,
      2011 on the status and progress of projects and activities funded
      by this Act with respect to compliance with National Environmental
      Policy Act requirements and documentation./


    /PROHIBITION ON NO-BID CONTRACTS AND EARMARKS/

      / Sec. 1608. (a) Notwithstanding any other provision of this Act,
      none of the funds appropriated or otherwise made available by this
      Act may be used to make any payment in connection with a contract
      unless the contract is awarded using competitive procedures in
      accordance with the requirements of section 303 of the Federal
      Property and Administrative Services Act of 1949 (41 U.S.C. 253),
      section 2304 of title 10, United States Code, and the Federal
      Acquisition Regulation./

      / (b) Notwithstanding any other provision of this Act, none of the
      funds appropriated or otherwise made available by this Act may be
      awarded by grant or cooperative agreement unless the process used
      to award such grant or cooperative agreement uses competitive
      procedures to select the grantee or award recipient./

      / Sec. 1609. Limit on Funds./

      / None of the amounts appropriated or otherwise made available by
      this Act may be used for any casino or other gambling
      establishment, aquarium, zoo, golf course, swimming pool, stadium,
      community park, museum, theater, art center, and highway
      beautification project./

      /Sec. 1610. Hiring American workers in companies receiving TARP
      funding./

      / (a) Short Title- This section may be cited as the `Employ
      American Workers Act'./

      / (b) Prohibition- /

            / (1) IN GENERAL- Notwithstanding any other provision of
            law, it shall be unlawful for any recipient of funding under
            title I of the Emergency Economic Stabilization Act of 2008
            (Public Law 110-343) or section 13 of the Federal Reserve
            Act (12 U.S.C. 342 et seq.) to hire any nonimmigrant
            described in section 101(a)(15)(h)(i)(b) of the Immigration
            and Nationality Act (8 U.S.C. 1101(a)(15)(h)(i)(b)) unless
            the recipient is in compliance with the requirements for an
            H-1B dependent employer (as defined in section 212(n)(3) of
            such Act (8 U.S.C. 1182(n)(3))), except that the second
            sentence of section 212(n)(1)(E)(ii) of such Act shall not
            apply./

            / (2) DEFINED TERM- In this subsection, the term `hire'
            means to permit a new employee to commence a period of
            employment./

      / (c) Sunset Provision- This section shall be effective during the
      2-year period beginning on the date of the enactment of this Act./


        /DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND
        OTHER PROVISIONS/


        /TITLE I--TAX PROVISIONS/


      /SEC. 1000. SHORT TITLE, ETC./

      / (a) Short Title- This title may be cited as the `American
      Recovery and Reinvestment Tax Act of 2009'./

      / (b) Reference- Except as otherwise expressly provided, 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:/


      /TITLE I--TAX PROVISIONS/

            /Sec. 1000. Short title, etc./


      /Subtitle A--Tax Relief for Individuals and Families/


      /PART I--General Tax Relief/

            /Sec. 1001. Making work pay credit./

            /Sec. 1002. Temporary increase in earned income tax credit./

            /Sec. 1003. Temporary increase of refundable portion of
            child credit./

            /Sec. 1004. American opportunity tax credit./

            /Sec. 1005. Computer technology and equipment allowed as a
            qualified higher education expense for section 529 accounts
            in 2009 and 2010./

            /Sec. 1006. Credit for certain home purchases./

            /Sec. 1007. Suspension of tax on portion of unemployment
            compensation./

            /Sec. 1008. Above-the-line deduction for interest on
            indebtedness with respect to the purchase of certain motor
            vehicles./

            /Sec. 1009. Above-the-line deduction for State sales tax and
            excise tax on the purchase of certain motor vehicles./


      /PART II--Alternative Minimum Tax Relief/

            /Sec. 1011. Extension of alternative minimum tax relief for
            nonrefundable personal credits./

            /Sec. 1012. Extension of increased alternative minimum tax
            exemption amount./


      /Subtitle B--Energy Incentives/


      /PART I--Renewable Energy Incentives/

            /Sec. 1101. Extension of credit for electricity produced
            from certain renewable resources./

            /Sec. 1102. Election of investment credit in lieu of
            production credit./

            /Sec. 1103. Repeal of certain limitations on credit for
            renewable energy property./


      /PART II--Increased Allocations of New Clean Renewable Energy
      Bonds and Qualified Energy Conservation Bonds/

            /Sec. 1111. Increased limitation on issuance of new clean
            renewable energy bonds./

            /Sec. 1112. Increased limitation on issuance of qualified
            energy conservation bonds./


      /PART III--Energy Conservation Incentives/

            /Sec. 1121. Extension and modification of credit for
            nonbusiness energy property./

            /Sec. 1122. Modification of credit for residential energy
            efficient property./

            /Sec. 1123. Temporary increase in credit for alternative
            fuel vehicle refueling property./


      /PART IV--Energy Research Incentives/

            /Sec. 1131. Increased research credit for energy research./


      /PART V--Modification of Credit for Carbon Dioxide Sequestration/

            /Sec. 1141. Application of monitoring requirements to carbon
            dioxide used as a tertiary injectant./


      /PART VI--Plug-in Electric Drive Motor Vehicles/

            /Sec. 1151. Modification of credit for qualified plug-in
            electric motor vehicles./


      /Subtitle C--Tax Incentives for Business/


      /PART I--Temporary Investment Incentives/

            /Sec. 1201. Special allowance for certain property acquired
            during 2009./

            /Sec. 1202. Temporary increase in limitations on expensing
            of certain depreciable business assets./


      /PART II--5-Year Carryback of Operating Losses/

            /Sec. 1211. 5-year carryback of operating losses./

            /Sec. 1212. Exception for TARP recipients./


      /PART III--Incentives for New Jobs/

            /Sec. 1221. Incentives to hire unemployed veterans and
            disconnected youth./


      /PART IV--Cancellation of Indebtedness/

            /Sec. 1231. Deferral and ratable inclusion of income arising
            from indebtedness discharged by the repurchase of a debt
            instrument./


      /PART V--Qualified Small Business Stock/

            /Sec. 1241. Special rules applicable to qualified small
            business stock for 2009 and 2010./


      /PART VI--Parity for Transportation Fringe Benefits/

            /Sec. 1251. Increased exclusion amount for commuter transit
            benefits and transit passes./


      /PART VII--S Corporations/

            /Sec. 1261. Temporary reduction in recognition period for
            built-in gains tax./


      /PART VIII--Broadband Incentives/

            /Sec. 1271. Broadband Internet access tax credit./


      /PART IX--Clarification of Regulations Related to Limitations on
      Certain Built-in Losses Following an Ownership Change/

            /Sec. 1281. Clarification of regulations related to
            limitations on certain built-in losses following an
            ownership change./


      /Subtitle D--Manufacturing Recovery Provisions/

            /Sec. 1301. Temporary expansion of availability of
            industrial development bonds to facilities manufacturing
            intangible property./

            /Sec. 1302. Credit for investment in advanced energy
            facilities./


      /Subtitle E--Economic Recovery Tools/

            /Sec. 1401. Recovery zone bonds./

            /Sec. 1402. Tribal economic development bonds./

            /Sec. 1403. Modifications to new markets tax credit./


      /Subtitle F--Infrastructure Financing Tools/


      /PART I--Improved Marketability for Tax-Exempt Bonds/

            /Sec. 1501. De minimis safe harbor exception for tax-exempt
            interest expense of 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./

            /Sec. 1504. Modification to high speed intercity rail
            facility bonds./


      /PART II--Delay in Application of Withholding Tax on Government
      Contractors/

            /Sec. 1511. Delay in application of withholding tax on
            government contractors./


      /PART III--Tax Credit Bonds for Schools/

            /Sec. 1521. Qualified school construction bonds./

            /Sec. 1522. Extension and expansion of qualified zone
            academy bonds./


      /PART IV--Build America Bonds/

            /Sec. 1531. Build America bonds./


      /Subtitle G--Economic Recovery Payments to Certain Individuals/

            /Sec. 1601. Economic recovery payment to recipients of
            Social Security, supplemental security income, railroad
            retirement benefits, and veterans disability compensation or
            pension benefits./


      /Subtitle H--Trade Adjustment Assistance/

            /Sec. 1701. Temporary extension of Trade Adjustment
            Assistance program./


      /Subtitle I--Prohibition on Collection of Certain Payments Made
      Under the Continued Dumping and Subsidy Offset Act of 2000/

            /Sec. 1801. Prohibition on collection of certain payments
            made under the Continued Dumping and Subsidy Offset Act of
            2000./


      /Subtitle J--Other Provisions/

            /Sec. 1901. Application of certain labor standards to
            projects financed with certain tax-favored bonds./

            /Sec. 1902. Increase in public debt limit./

            /Sec. 1903. Election to accelerate the low-income housing
            tax credit./


        /Subtitle A--Tax Relief for Individuals and Families/


    //PART I--GENERAL TAX RELIEF//


      /SEC. 1001. MAKING WORK PAY CREDIT./

      / (a) In General- Subpart C of part IV of subchapter A of chapter
      1 is amended by inserting after section 36 the following new section:/


      /`SEC. 36A. MAKING WORK PAY CREDIT./

      / `(a) Allowance of Credit- In the case of an eligible 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
            and subsection (c)) for the taxable year shall be reduced
            (but not below zero) by 4 percent of so much of the
            taxpayer's modified adjusted gross income as exceeds $70,000
            ($140,000 in the case of a joint return)./

            / `(2) MODIFIED ADJUSTED GROSS INCOME- For purposes of
            subparagraph (A), the term `modified adjusted gross income'
            means the adjusted gross income of the taxpayer for the
            taxable year increased by any amount excluded from gross
            income under section 911, 931, or 933./

      / `(c) Reduction for Certain Other Payments- The credit allowed
      under subsection (a) for any taxable year shall be reduced by the
      amount of any payments received by the taxpayer during such
      taxable year under section 1601 of the American Recovery and
      Reinvestment Tax Act of 2009./

      / `(d) 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./

      / `(e) 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) Authority Relating to Clerical Errors- Section 6213(g)(2) is
      amended by striking `and' at the end of subparagraph (L)(ii), by
      striking the period at the end of subparagraph (M) and inserting
      `, and', and by adding at the end the following new subparagraph:/

                  / `(N) an omission of the reduction required under
                  section 36A(c) with respect to the credit allowed
                  under section 36A or an omission of the correct TIN
                  required under section 36A(d)(1).'./

      / (e) 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.'./

      / (f) Effective Date- This section, and the amendments made by
      this section, shall apply to taxable years beginning after
      December 31, 2008./


      /SEC. 1002. TEMPORARY 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. 1003. TEMPORARY 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 $8,100.'./

      / (b) Effective Date- The amendments made by this section shall
      apply to taxable years beginning after December 31, 2008./


      /SEC. 1004. 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- 30 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./


      /SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A
      QUALIFIED HIGHER EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS IN
      2009 AND 2010./

      / (a) In General- Section 529(e)(3)(A) is amended by striking
      `and' at the end of clause (i), by striking the period at the end
      of clause (ii), and by adding at the end the following:/

                        / `(iii) expenses paid or incurred in 2009 or
                        2010 for the purchase of any computer technology
                        or equipment (as defined in section
                        170(e)(6)(F)(i)) or Internet access and related
                        services, if such technology, equipment, or
                        services are to be used by the beneficiary and
                        the beneficiary's family during any of the years
                        the beneficiary is enrolled at an eligible
                        educational institution./

                  /Clause (iii) shall not include expenses for computer
                  software designed for sports, games, or hobbies unless
                  the software is predominantly educational in nature.'./

      / (b) Effective Date- The amendments made by this section shall
      apply to expenses paid or incurred after December 31, 2008./


      /SEC. 1006. CREDIT FOR CERTAIN HOME PURCHASES./

      / (a) Allowance of Credit- Subpart A of part IV of subchapter A of
      chapter 1 is amended by inserting after section 25D the following
      new section:/


      /`SEC. 25E. CREDIT FOR CERTAIN HOME PURCHASES./

      / `(a) Allowance of Credit- /

            / `(1) IN GENERAL- In the case of an individual who is a
            purchaser of a principal residence during the taxable year,
            there shall be allowed as a credit against the tax imposed
            by this chapter an amount equal to 10 percent of the
            purchase price of the residence./

            / `(2) DOLLAR LIMITATION- The amount of the credit allowed
            under paragraph (1) shall not exceed $15,000./

            / `(3) ALLOCATION OF CREDIT AMOUNT- At the election of the
            taxpayer, the amount of the credit allowed under paragraph
            (1) (after application of paragraph (2)) may be equally
            divided among the 2 taxable years beginning with the taxable
            year in which the purchase of the principal residence is made./

      / `(b) Limitations- /

            / `(1) DATE OF PURCHASE- The credit allowed under subsection
            (a) shall be allowed only with respect to purchases made--/

                  / `(A) after the date of the enactment of the American
                  Recovery and Reinvestment Tax Act of 2009, and/

                  / `(B) on or before the date that is 1 year after such
                  date of enactment./

            / `(2) LIMITATION BASED ON AMOUNT OF TAX- In the case of a
            taxable year to which section 26(a)(2) does not apply, 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
                  subpart (other than this section) for the taxable year./

            / `(3) ONE-TIME ONLY- /

                  / `(A) IN GENERAL- If a credit is allowed under this
                  section in the case of any individual (and such
                  individual's spouse, if married) with respect to the
                  purchase of any principal residence, no credit shall
                  be allowed under this section in any taxable year with
                  respect to the purchase of any other principal
                  residence by such individual or a spouse of such
                  individual./

                  / `(B) JOINT PURCHASE- In the case of a purchase of a
                  principal residence by 2 or more unmarried individuals
                  or by 2 married individuals filing separately, no
                  credit shall be allowed under this section if a credit
                  under this section has been allowed to any of such
                  individuals in any taxable year with respect to the
                  purchase of any other principal residence./

      / `(c) Principal Residence- For purposes of this section, the term
      `principal residence' has the same meaning as when used in section
      121./

      / `(d) Denial of Double Benefit- No credit shall be allowed under
      this section for any purchase for which a credit is allowed under
      section 36 or section 1400C./

      / `(e) Special Rules- /

            / `(1) JOINT PURCHASE- /

                  / `(A) MARRIED INDIVIDUALS FILING SEPARATELY- In the
                  case of 2 married individuals filing separately,
                  subsection (a) shall be applied to each such
                  individual by substituting `$7,500' for `$15,000' in
                  subsection (a)(1)./

                  / `(B) UNMARRIED INDIVIDUALS- If 2 or more individuals
                  who are not married purchase a principal residence,
                  the amount of the credit allowed under subsection (a)
                  shall be allocated among such individuals in such
                  manner as the Secretary may prescribe, except that the
                  total amount of the credits allowed to all such
                  individuals shall not exceed $15,000./

            / `(2) PURCHASE- In defining the purchase of a principal
            residence, rules similar to the rules of paragraphs (2) and
            (3) of section 1400C(e) (as in effect on the date of the
            enactment of this section) shall apply./

            / `(3) REPORTING REQUIREMENT- Rules similar to the rules of
            section 1400C(f) (as so in effect) shall apply./

      / `(f) Recapture of Credit in the Case of Certain Dispositions- /

            / `(1) IN GENERAL- In the event that a taxpayer--/

                  / `(A) disposes of the principal residence with
                  respect to which a credit was allowed under subsection
                  (a), or/

                  / `(B) fails to occupy such residence as the
                  taxpayer's principal residence,/

            /at any time within 24 months after the date on which the
            taxpayer purchased such residence, then the tax imposed by
            this chapter for the taxable year during which such
            disposition occurred or in which the taxpayer failed to
            occupy the residence as a principal residence shall be
            increased by the amount of such credit./

            / `(2) EXCEPTIONS- /

                  / `(A) DEATH OF TAXPAYER- Paragraph (1) shall not
                  apply to any taxable year ending after the date of the
                  taxpayer's death./

                  / `(B) INVOLUNTARY CONVERSION- Paragraph (1) shall not
                  apply in the case of a residence which is compulsorily
                  or involuntarily converted (within the meaning of
                  section 1033(a)) if the taxpayer acquires a new
                  principal residence within the 2-year period beginning
                  on the date of the disposition or cessation referred
                  to in such paragraph. Paragraph (1) shall apply to
                  such new principal residence during the remainder of
                  the 24-month period described in such paragraph as if
                  such new principal residence were the converted
                  residence./

                  / `(C) TRANSFERS BETWEEN SPOUSES OR INCIDENT TO
                  DIVORCE- In the case of a transfer of a residence to
                  which section 1041(a) applies--/

                        / `(i) paragraph (1) shall not apply to such
                        transfer, and/

                        / `(ii) in the case of taxable years ending
                        after such transfer, paragraph (1) shall apply
                        to the transferee in the same manner as if such
                        transferee were the transferor (and shall not
                        apply to the transferor)./

                  / `(D) RELOCATION OF MEMBERS OF THE ARMED FORCES-
                  Paragraph (1) shall not apply in the case of a member
                  of the Armed Forces of the United States on active
                  duty who moves pursuant to a military order and
                  incident to a permanent change of station./

            / `(3) JOINT RETURNS- In the case of a credit allowed under
            subsection (a) with respect to a joint return, half of such
            credit shall be treated as having been allowed to each
            individual filing such return for purposes of this subsection./

            / `(4) RETURN REQUIREMENT- If the tax imposed by this
            chapter for the taxable year is increased under this
            subsection, the taxpayer shall, notwithstanding section
            6012, be required to file a return with respect to the taxes
            imposed under this subtitle./

      / `(g) Basis Adjustment- For purposes of this subtitle, if a
      credit is allowed under this section with respect to the purchase
      of any residence, the basis of such residence shall be reduced by
      the amount of the credit so allowed./

      / `(h) Election to Treat Purchase in Prior Year- In the case of a
      purchase of a principal residence during the period described in
      subsection (b)(1), a taxpayer may elect to treat such purchase as
      made on December 31, 2008, for purposes of this section.'./

      / (b) Clerical Amendment- The table of sections for subpart A of
      part IV of subchapter A of chapter 1 is amended by inserting after
      the item relating to section 25D the following new item:/

            /`Sec. 25E. Credit for certain home purchases.'./

      / (c) Sunset of Current First-Time Homebuyer Credit- /

            / (1) IN GENERAL- Subsection (h) of section 36 is amended by
            striking `July 1, 2009' and inserting `the date of the
            enactment of the American Recovery and Reinvestment Tax Act
            of 2009'./

            / (2) ELECTION TO TREAT PURCHASE IN PRIOR YEAR- Subsection
            (g) of section 36 is amended by striking `July 1, 2009' and
            inserting `the date of the enactment of the American
            Recovery and Reinvestment Tax Act of 2009'./

      / (d) Effective Date- The amendments made by this section shall
      apply to purchases after the date of the enactment of this Act./


      /SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT
      COMPENSATION./

      / (a) In General- Section 85 of the Internal Revenue Code of 1986
      (relating to unemployment compensation) is amended by adding at
      the end the following new subsection:/

      / `(c) Special Rule for 2009- In the case of any taxable year
      beginning in 2009, gross income shall not include so much of the
      unemployment compensation received by an individual as does not
      exceed $2,400.'./

      / (b) Effective Date- The amendment made by this section shall
      apply to taxable years beginning after December 31, 2008./


      /SEC. 1008. ABOVE-THE-LINE DEDUCTION FOR INTEREST ON INDEBTEDNESS
      WITH RESPECT TO THE PURCHASE OF CERTAIN MOTOR VEHICLES./

      / (a) In General- Paragraph (2) of section 163(h) of the Internal
      Revenue Code of 1986 is amended--/

            / (1) by striking `and' at the end of subparagraph (E),/

            / (2) by striking the period at the end of subparagraph (F)
            and inserting `, and', and/

            / (3) by adding at the end the following new subparagraph:/

                  / `(G) any qualified motor vehicle interest (within
                  the meaning of paragraph (5)).'./

      / (b) Qualified Motor Vehicle Interest- Section 163(h) of the
      Internal Revenue Code of 1986 is amended by adding at the end the
      following new paragraph:/

            / `(5) QUALIFIED MOTOR VEHICLE INTEREST- For purposes of
            this subsection--/

                  / `(A) IN GENERAL- The term `qualified motor vehicle
                  interest' means any interest which is paid or accrued
                  during the taxable year on any indebtedness which--/

                        / `(i) is incurred after November 12, 2008, and
                        before January 1, 2010, in acquiring any
                        qualified motor vehicle of the taxpayer, and/

                        / `(ii) is secured by such qualified motor vehicle./

                  /Such term also includes any indebtedness secured by
                  such qualified motor vehicle resulting from the
                  refinancing of indebtedness meeting the requirements
                  of the preceding sentence (or this sentence); but only
                  to the extent the amount of the indebtedness resulting
                  from such refinancing does not exceed the amount of
                  the refinanced indebtedness./

                  / `(B) DOLLAR LIMITATION- The aggregate amount of
                  indebtedness treated as described in subparagraph (A)
                  for any period shall not exceed $49,500 ($24,750 in
                  the case of a separate return by a married individual)./

                  / `(C) INCOME LIMITATION- The amount otherwise treated
                  as interest under subparagraph (A) for any taxable
                  year (after the application of subparagraph (B)) shall
                  be reduced (but not below zero) by the amount which
                  bears the same ratio to the amount which is so treated
                  as--/

                        / `(i) the excess (if any) of--/

                              / `(I) the taxpayer's modified adjusted
                              gross income for such taxable year, over/

                              / `(II) $125,000 ($250,000 in the case of
                              a joint return), bears to/

                        / `(ii) $10,000./

                  /For purposes of the preceding sentence, 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./

                  / `(D) QUALIFIED MOTOR VEHICLE- The term `qualified
                  motor vehicle' means a passenger automobile (within
                  the meaning of section 30B(h)(3)) or a light truck
                  (within the meaning of such section)--/

                        / `(i) which is acquired for use by the taxpayer
                        and not for resale after November 12, 2008, and
                        before January 1, 2010,/

                        / `(ii) the original use of which commences with
                        the taxpayer, and/

                        / `(iii) which has a gross vehicle weight rating
                        of not more than 8,500 pounds.'./

      / (c) Deduction Allowed Above-the-Line- Section 62(a) of the
      Internal Revenue Code of 1986 is amended by inserting after
      paragraph (21) the following new paragraph:/

            / `(22) QUALIFIED MOTOR VEHICLE INTEREST- The deduction
            allowed under section 163 by reason of subsection (h)(2)(G)
            thereof.'./

      / (d) Reporting of Qualified Motor Vehicle Interest- /

            / (1) IN GENERAL- Subpart B of part III of subchapter A of
            chapter 61 of the Internal Revenue Code of 1986 is amended
            by adding at the end the following new section:/


      /`SEC. 6050X. RETURNS RELATING TO QUALIFIED MOTOR VEHICLE INTEREST
      RECEIVED IN TRADE OR BUSINESS FROM INDIVIDUALS./

      / `(a) Qualified Motor Vehicle Interest- Any person--/

            / `(1) who is engaged in a trade or business, and/

            / `(2) who, in the course of such trade or business,
            receives from any individual interest aggregating $600 or
            more for any calendar year on any indebtedness secured by a
            qualified motor vehicle (as defined in section 163(h)(5)(D)),/

      /shall make the return described in subsection (b) with respect to
      each individual from whom such interest was received at such time
      as the Secretary may by regulations prescribe./

      / `(b) Form and Manner of Returns- A return is described in this
      subsection if such return--/

            / `(1) is in such form as the Secretary may prescribe,/

            / `(2) contains--/

                  / `(A) the name and address of the individual from
                  whom the interest described in subsection (a)(2) was
                  received,/

                  / `(B) the amount of such interest received for the
                  calendar year, and/

                  / `(C) such other information as the Secretary may
                  prescribe./

      / `(c) Application to Governmental Units- For purposes of
      subsection (a)--/

            / `(1) TREATED AS PERSONS- The term `person' includes any
            governmental unit (and any agency or instrumentality thereof)./

            / `(2) SPECIAL RULES- In the case of a governmental unit or
            any agency or instrumentality thereof--/

                  / `(A) subsection (a) shall be applied without regard
                  to the trade or business requirement contained
                  therein, and/

                  / `(B) any return required under subsection (a) shall
                  be made by the officer or employee appropriately
                  designated for the purpose of making such return./

      / `(d) Statements To Be Furnished to Individuals With Respect to
      Whom Information Is Required- Every person required to make a
      return under subsection (a) shall furnish to each individual whose
      name is required to be set forth in such return a written
      statement showing--/

            / `(1) the name, address, and phone number of the
            information contact of the person required to make such
            return, and/

            / `(2) the aggregate amount of interest described in
            subsection (a)(2) received by the person required to make
            such return from the individual to whom the statement is
            required to be furnished./

      /The written statement required under the preceding sentence shall
      be furnished on or before January 31 of the year following the
      calendar year for which the return under subsection (a) was
      required to be made./

      / `(e) Returns Which Would Be Required To Be Made by 2 or More
      Persons- Except to the extent provided in regulations prescribed
      by the Secretary, in the case of interest received by any person
      on behalf of another person, only the person first receiving such
      interest shall be required to make the return under subsection (a).'./

            / (2) AMENDMENTS RELATING TO PENALTIES- /

                  / (A) Section 6721(e)(2)(A) of such Code is amended by
                  striking `or 6050L' and inserting `6050L, or 6050X'./

                  / (B) Section 6722(c)(1)(A) of such Code is amended by
                  striking `or 6050L(c)' and inserting `6050L(c), or
                  6050X(d)'./

                  / (C) Subparagraph (B) of section 6724(d)(1) of such
                  Code is amended by redesignating clauses (xvi) through
                  (xxii) as clauses (xvii) through (xxiii),
                  respectively, and by inserting after clause (xii) the
                  following new clause:/

                        / `(xvi) section 6050X (relating to returns
                        relating to qualified motor vehicle interest
                        received in trade or business from individuals),'./

                  / (D) Paragraph (2) of section 6724(d) of such Code is
                  amended by striking the period at the end of
                  subparagraph (DD) and inserting `, or' and by
                  inserting after subparagraph (DD) the following new
                  subparagraph:/

                  / `(EE) section 6050X(d) (relating to returns relating
                  to qualified motor vehicle interest received in trade
                  or business from individuals).'./

            / (3) CLERICAL AMENDMENT- The table of sections for subpart
            B of part III of subchapter A of chapter 61 of such Code is
            amended by inserting after the item relating to section
            6050W the following new item:/

            /`Sec. 6050X. Returns relating to qualified motor vehicle
            interest received in trade or business from individuals.'./

      / (e) Effective Date- The amendments made by this section shall
      apply to taxable years beginning after December 31, 2008./


      /SEC. 1009. ABOVE-THE-LINE DEDUCTION FOR STATE SALES TAX AND
      EXCISE TAX ON THE PURCHASE OF CERTAIN MOTOR VEHICLES./

      / (a) In General- Subsection (a) of section 164 of the Internal
      Revenue Code of 1986 is amended by inserting after paragraph (5)
      the following new paragraph:/

            / `(6) Qualified motor vehicle taxes.'./

      / (b) Qualified Motor Vehicle Taxes- Subsection (b) of section 164
      of the Internal Revenue Code of 1986 is amended by adding at the
      end the following new paragraph:/

            / `(6) QUALIFIED MOTOR VEHICLE TAXES- /

                  / `(A) IN GENERAL- For purposes of this section, the
                  term `qualified motor vehicle taxes' means any State
                  or local sales or excise tax imposed on the purchase
                  of a qualified motor vehicle (as defined in section
                  163(h)(5)(D))./

                  / `(B) DOLLAR LIMITATION- The amount taken into
                  account under subparagraph (A) for any taxable year
                  shall not exceed $49,500 ($24,750 in the case of a
                  separate return by a married individual)./

                  / `(C) INCOME LIMITATION- The amount otherwise taken
                  into account under subparagraph (A) (after the
                  application of subparagraph (B)) for any taxable year
                  shall be reduced (but not below zero) by the amount
                  which bears the same ratio to the amount which is so
                  treated as--/

                        / `(i) the excess (if any) of--/

                              / `(I) the taxpayer's modified adjusted
                              gross income for such taxable year, over/

                              / `(II) $125,000 ($250,000 in the case of
                              a joint return), bears to/

                        / `(ii) $10,000./

                  /For purposes of the preceding sentence, 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./

                  / `(D) QUALIFIED MOTOR VEHICLE TAXES NOT INCLUDED IN
                  COST OF ACQUIRED PROPERTY- The last sentence of
                  subsection (a) shall not apply to any qualified motor
                  vehicle taxes./

                  / `(E) COORDINATION WITH GENERAL SALES TAX- This
                  paragraph shall not apply in the case of a taxpayer
                  who makes an election under paragraph (5) for the
                  taxable year.'./

      / (c) Conforming Amendments- Paragraph (5) of section 163(h) of
      the Internal Revenue Code of 1986, as added by section 1, is
      amended--/

            / (1) by adding at the end the following new subparagraph:/

                  / `(E) EXCLUSION- If the indebtedness described in
                  subparagraph (A) includes the amounts of any State or
                  local sales or excise taxes paid or accrued by the
                  taxpayer in connection with the acquisition of a
                  qualified motor vehicle, the aggregate amount of such
                  indebtedness taken into account under such
                  subparagraph shall be reduced, but not below zero, by
                  the amount of any such taxes for which a deduction is
                  allowed under section 164(a) by reason of paragraph
                  (6) thereof.', and/

            / (2) by inserting `, after the application of subparagraph
            (E),' after `for any period' in subparagraph (B)./

      / (d) Deduction Allowed Above-the-Line- Section 62(a) of the
      Internal Revenue Code of 1986, as amended by section 1, is amended
      by inserting after paragraph (22) the following new paragraph:/

            / `(23) QUALIFIED MOTOR VEHICLE TAXES- The deduction allowed
            under section 164 by reason of subsection (a)(6) thereof.'./

      / (e) Effective Date- The amendments made by this section shall
      apply to taxable years beginning after December 31, 2008./


    //PART II--ALTERNATIVE MINIMUM TAX RELIEF//


      /SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR
      NONREFUNDABLE PERSONAL CREDITS./

      / (a) In General- Paragraph (2) of section 26(a) (relating to
      special rule for taxable years 2000 through 2008) is amended--/

            / (1) by striking `or 2008' and inserting `2008, or 2009', and/

            / (2) by striking `2008' in the heading thereof and
            inserting `2009'./

      / (b) Effective Date- The amendments made by this section shall
      apply to taxable years beginning after December 31, 2008./


      /SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX
      EXEMPTION AMOUNT./

      / (a) In General- Paragraph (1) of section 55(d) (relating to
      exemption amount) is amended--/

            / (1) by striking `($69,950 in the case of taxable years
            beginning in 2008)' in subparagraph (A) and inserting
            `($70,950 in the case of taxable years beginning in 2009)', and/

            / (2) by striking `($46,200 in the case of taxable years
            beginning in 2008)' in subparagraph (B) and inserting
            `($46,700 in the case of taxable years beginning in 2009)'./

      / (b) Effective Date- The amendments made by this section shall
      apply to taxable years beginning after December 31, 2008./


        /Subtitle B--Energy Incentives/


    //PART I--RENEWABLE ENERGY INCENTIVES//


      /SEC. 1101. 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. 1102. 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--/

                        / `(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 of the following
                  facilities 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:/

                        / `(i) WIND FACILITIES- Any facility described
                        in paragraph (1) of section 45(d) if such
                        facility is placed in service in 2009, 2010,
                        2011, or 2012./

                        / `(ii) OTHER FACILITIES- Any facility described
                        in paragraph (2), (3), (4), (6), (7), (9), or
                        (11) of section 45(d) if such facility is placed
                        in service in 2009, 2010, 2011, 2012, or 2013.'./

      / (b) Effective Date- The amendments made by this section shall
      apply to facilities placed in service after December 31, 2008./


      /SEC. 1103. 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- Section 48(a)(4) is amended by adding at
            the end the following new subparagraph:/

                  / `(D) TERMINATION- This paragraph shall not apply to
                  periods after December 31, 2008, under rules similar
                  to the rules of section 48(m) (as in effect on the day
                  before the date of the enactment of the Revenue
                  Reconciliation Act of 1990).'./

            / (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) Section 48A(b)(2) is amended by inserting
                  `(without regard to subparagraph (D) thereof)' after
                  `section 48(a)(4)'./

                  / (D) Section 48B(b)(2) is amended by inserting
                  `(without regard to subparagraph (D) thereof)' after
                  `section 48(a)(4)'./

      / (c) Effective Date- /

            / (1) IN GENERAL- Except as provided in paragraph (2), the
            amendment made by this section shall apply to periods after
            December 31, 2008, under rules similar to the rules of
            section 48(m) of the Internal Revenue Code of 1986 (as in
            effect on the day before the date of the enactment of the
            Revenue Reconciliation Act of 1990)./

            / (2) CONFORMING AMENDMENTS- The amendments made by
            subsection (b)(2) shall apply to taxable years beginning
            after December 31, 2008./


    //PART II--INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS
    AND QUALIFIED ENERGY CONSERVATION BONDS//


      /SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN
      RENEWABLE ENERGY BONDS./

      / 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. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED ENERGY
      CONSERVATION BONDS./

      / (a) In General- Section 54D(d) is amended by striking
      `800,000,000' and inserting `$3,200,000,000'./

      / (b) Clarification With Respect to Green Community Programs-
      Clause (ii) of section 54D(f)(1)(A) is amended by inserting
      `(including the use of loans, grants, or other repayment
      mechanisms to implement such programs)' after `green community
      programs'./


    //PART III--ENERGY CONSERVATION INCENTIVES//


      /SEC. 1121. 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) Modifications of Standards for Energy-Efficient Building
      Property- /

            / (1) ELECTRIC HEAT PUMPS- Subparagraph (B) of section
            25C(d)(3) is amended to read as follows:/

                  / `(B) an electric heat pump which achieves the
                  highest efficiency tier established by the Consortium
                  for Energy Efficiency, as in effect on January 1, 2009.'./

            / (2) CENTRAL AIR CONDITIONERS- Subparagraph (C) of section
            25C(d)(3) is amended by striking `2006' and inserting `2009'./

            / (3) WATER HEATERS- Subparagraph (D) of section 25C(d)(3)
            is amended to read as follows:/

                  / `(E) a natural gas, propane, or oil water heater
                  which has either an energy factor of at least 0.82 or
                  a thermal efficiency of at least 90 percent.'./

            / (4) WOOD STOVES- Subparagraph (E) of section 25C(d)(3) is
            amended by inserting `, as measured using a lower heating
            value' after `75 percent'./

      / (c) Modifications of Standards for Oil Furnaces and Hot Water
      Boilers- /

            / (1) IN GENERAL- Paragraph (4) of section 25C(d) is amended
            to read as follows:/

            / `(4) QUALIFIED NATURAL GAS, PROPANE, AND OIL FURNACES AND
            HOT WATER BOILERS- /

                  / `(A) QUALIFIED NATURAL GAS FURNACE- The term
                  `qualified natural gas furnace' means any natural gas
                  furnace which achieves an annual fuel utilization
                  efficiency rate of not less than 95./

                  / `(B) QUALIFIED NATURAL GAS HOT WATER BOILER- The
                  term `qualified natural gas hot water boiler' means
                  any natural gas hot water boiler which achieves an
                  annual fuel utilization efficiency rate of not less
                  than 90./

                  / `(C) QUALIFIED PROPANE FURNACE- The term `qualified
                  propane furnace' means any propane furnace which
                  achieves an annual fuel utilization efficiency rate of
                  not less than 95./

                  / `(D) QUALIFIED PROPANE HOT WATER BOILER- The term
                  `qualified propane hot water boiler' means any propane
                  hot water boiler which achieves an annual fuel
                  utilization efficiency rate of not less than 90./

                  / `(E) QUALIFIED OIL FURNACES- The term `qualified oil
                  furnace' means any oil furnace which achieves an
                  annual fuel utilization efficiency rate of not less
                  than 90./

                  / `(F) QUALIFIED OIL HOT WATER BOILER- The term
                  `qualified oil hot water boiler' means any oil hot
                  water boiler which achieves an annual fuel utilization
                  efficiency rate of not less than 90.'./

            / (2) CONFORMING AMENDMENT- Clause (ii) of section
            25C(d)(2)(A) is amended to read as follows:/

                        / `(ii) any qualified natural gas furnace,
                        qualified propane furnace, qualified oil
                        furnace, qualified natural gas hot water boiler,
                        qualified propane hot water boiler, or qualified
                        oil hot water boiler, or'./

      / (d) Modifications of Standards for Qualified Energy Efficiency
      Improvements- /

            / (1) QUALIFICATIONS FOR EXTERIOR WINDOWS, DOORS, AND
            SKYLIGHTS- Subsection (c) of section 25C is amended by
            adding at the end the following new paragraph:/

            / `(4) QUALIFICATIONS FOR EXTERIOR WINDOWS, DOORS, AND
            SKYLIGHTS- Such term shall not include any component
            described in subparagraph (B) or (C) of paragraph (2) unless
            such component is equal to or below a U factor of 0.30 and
            SHGC of 0.30.'./

            / (2) ADDITIONAL QUALIFICATION FOR INSULATION- Subparagraph
            (A) of section 25C(c)(2) is amended by inserting `and meets
            the prescriptive criteria for such material or system
            established by the 2009 International Energy Conservation
            Code, as such Code (including supplements) is in effect on
            the date of the enactment of the American Recovery and
            Reinvestment Tax Act of 2009' after `such dwelling unit'./

      / (e) Extension- Section 25C(g)(2) is amended by striking
      `December 31, 2009' and inserting `December 31, 2010'./

      / (f) Effective Dates- /

            / (1) IN GENERAL- Except as provided in paragraph (2), the
            amendments made by this section shall apply to taxable years
            beginning after December 31, 2008./

            / (2) EFFICIENCY STANDARDS- The amendments made by
            paragraphs (1), (2), and (3) of subsection (b) and
            subsections (c) and (d) shall apply to property placed in
            service after December 31, 2009./


      /SEC. 1122. 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. 1123. 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)(1) shall be applied by
                  substituting `$200,000' for `$30,000'.'./

      / (b) Ensuring Consumer Accessibility to Alternative Fuel Vehicle
      Refueling Property in the Case of Electricity- Section 179(d)(3)
      is amended by striking subparagraph (B) and inserting the following:/

                  / `(B) for the recharging of motor vehicles propelled
                  by electricity, but only if--/

                        / `(i) the property complies with the Society of
                        Automotive Engineers' connection standards,/

                        / `(ii) the property provides for
                        non-restrictive access for charging and for
                        payment interoperability with other systems, and/

                        / `(iii) the property--/

                              / `(I) is located on property owned by the
                              taxpayer, or/

                              / `(II) is located on property owned by
                              another person, is placed in service with
                              the permission of such other person, and
                              is fully maintained by the taxpayer.'./

      / (c) Effective Date- The amendments made by this section shall
      apply to taxable years beginning after December 31, 2008./


      /SEC. 1124. RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS./

      / (a) Temporary 5-Year Recovery Period- /

            / (1) IN GENERAL- Subparagraph (B) of section 168(e)(3) is
            amended by striking `and' at the end of clause (vi), by
            striking the period at the end of clause (vii) and inserting
            `, and', and by adding at the end the following new clause:/

                        / `(viii) any qualified smart electric meter
                        which is placed in service before January 1,
                        2011.'./

            / (2) CONFORMING AMENDMENT- Clause (iii) of section
            168(e)(3)(D) is amended by inserting `which is placed in
            service after December 31, 2010' after `electric meter'./

      / (b) Technical Amendments- Paragraphs (18)(A)(ii) and (19)(A)(ii)
      of section 168(i) are each amended by striking `16 years' and
      inserting `10 years'./

      / (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 the date of the enactment of this Act./

            / (2) TECHNICAL AMENDMENT- The amendments made by subsection
            (b) shall take effect as if included in section 306 of the
            Energy Improvement and Extension Act of 2008./


    //PART IV--ENERGY RESEARCH INCENTIVES//


      /SEC. 1131. 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--/

                  / `(A) IN GENERAL- 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 and
                  renewable fuels, energy conservation technology,
                  efficient transmission and distribution of
                  electricity, and carbon capture and sequestration./

                  / `(B) COORDINATION WITH QUALIFYING ADVANCED ENERGY
                  PROJECT CREDIT- Such term shall not include
                  expenditures taken into account in determining the
                  amount of the credit under section 48 or 48C./

            / `(3) COORDINATION WITH OTHER RESEARCH CREDITS- /

                  / `(A) IN GENERAL- 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./


    //PART V--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION//


      /SEC. 1141. APPLICATION OF MONITORING REQUIREMENTS TO CARBON
      DIOXIDE USED AS A TERTIARY INJECTANT./

      / (a) In General- Section 45Q(a)(2) is amended by striking `and'
      at the end of subparagraph (A), by striking the period at the end
      of subparagraph (B) and inserting `, and', and by adding at the
      end the following new subparagraph:/

                  / `(C) disposed of by the taxpayer in secure
                  geological storage.'./

      / (b) Conforming Amendments- /

            / (1) Section 45Q(d)(2) is amended--/

                  / (A) by striking `subsection (a)(1)(B)' and inserting
                  `paragraph (1)(B) or (2)(C) of subsection (a)',/

                  / (B) by striking `and unminable coal seems' and
                  inserting `, oil and gas reservoirs, and unminable
                  coal seams', and/

                  / (C) by inserting `the Secretary of Energy, and the
                  Secretary of the Interior,' after `Environmental
                  Protection Agency'./

            / (2) Section 45Q(e) is amended by striking `captured and
            disposed of or used as a tertiary injectant' and inserting
            `taken into account in accordance with subsection (a)'./

      / (c) Effective Date- The amendments made by this section shall
      apply to carbon dioxide captured after the date of the enactment
      of this Act./


    //PART VI--PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES//


      /SEC. 1151. MODIFICATION OF CREDIT FOR QUALIFIED PLUG-IN ELECTRIC
      MOTOR VEHICLES./

      / (a) Increase in Vehicles Eligible for Credit- Section
      30D(b)(2)(B) is amended by striking `250,000' and inserting
      `500,000'./

      / (b) Exclusion of Neighborhood Electric Vehicles From Existing
      Credit- Section 30D(e)(1) is amended to read as follows:/

            / `(1) MOTOR VEHICLE- The term `motor vehicle' means a motor
            vehicle (as defined in section 30(c)(2)), which is treated
            as a motor vehicle for purposes of title II of the Clean Air
            Act.'./

      / (c) Credit for Certain Other Vehicles- Section 30D is amended--/

            / (1) by redesignating subsections (f) and (g) as
            subsections (g) and (h), respectively, and/

            / (2) by inserting after subsection (e) the following new
            subsection:/

      / `(f) Credit for Certain Other Vehicles- For purposes of this
      section--/

            / `(1) IN GENERAL- In the case of a specified vehicle, this
            section shall be applied with the following modifications:/

                  / `(A) For purposes of subsection (a)(1), in lieu of
                  the applicable amount determined under subsection
                  (a)(2), the applicable amount shall be 10 percent of
                  so much of the cost of the specified vehicle as does
                  not exceed $40,000./

                  / `(B) Subsection (b) shall not apply and no specified
                  vehicle shall be taken into account under subsection
                  (b)(2)./

                  / `(C) In the case of a specified vehicle which is a
                  2-or 3-wheeled motor vehicle, subsection (c)(1) shall
                  be applied by substituting `2.5 kilowatt hours' for `4
                  kilowatt hours'./

                  / `(D) In the case of a specified vehicle which is a
                  low-speed motor vehicle, subsection (c)(3) shall not
                  apply./

            / `(2) SPECIFIED VEHICLE- For purposes of this subsection--/

                  / `(A) IN GENERAL- The term `specified vehicle' means--/

                        / `(i) any 2- or 3- wheeled motor vehicle, or/

                        / `(ii) any low-speed motor vehicle,/

                  /which is placed in service after December 31, 2009,
                  and before January 1, 2012./

                  / `(B) 2- OR 3-WHEELED MOTOR VEHICLE- The term `2- or
                  3-wheeled motor vehicle' means any vehicle--/

                        / `(i) which would be described in section
                        30(c)(2) except that it has 2 or 3 wheels,/

                        / `(ii) with motive power having a seat or
                        saddle for the use of the rider and designed to
                        travel on not more than 3 wheels in contact with
                        the ground,/

                        / `(iii) which has an electric motor that
                        produces in excess of 5-brake horsepower,/

                        / `(iv) which draws propulsion from 1 or more
                        traction batteries, and/

                        / `(v) which has been certified to the
                        Department of Transportation pursuant to section
                        567 of title 49, Code of Federal Regulations, as
                        conforming to all applicable Federal motor
                        vehicle safety standards in effect on the date
                        of the manufacture of the vehicle./

                  / `(C) LOW-SPEED MOTOR VEHICLE- The term `low-speed
                  motor vehicle' means a motor vehicle (as defined in
                  section 30(c)(2)) which--/

                        / `(i) is placed in service after December 31,
                        2009, and/

                        / `(ii) meets the requirements of section
                        571.500 of title 49, Code of Federal Regulations.'./

      / (d) Effective Dates- /

            / (1) IN GENERAL- The amendment made by subsections (a) and
            (c) shall take effect on the date of the enactment of this Act./

            / (2) OTHER MODIFICATIONS- The amendments made by subsection
            (b) shall apply to property placed in service after December
            31, 2009, in taxable years beginning after such date./


      /SEC. 1152. CONVERSION KITS./

      / (a) In General- Section 30B (relating to alternative motor
      vehicle credit) is amended by redesignating subsections (i) and
      (j) as subsections (j) and (k), respectively, and by inserting
      after subsection (h) the following new subsection:/

      / `(i) Plug-In Conversion Credit- /

            / `(1) IN GENERAL- For purposes of subsection (a), the
            plug-in conversion credit determined under this subsection
            with respect to any motor vehicle which is converted to a
            qualified plug-in electric drive motor vehicle is 10 percent
            of so much of the cost of the converting such vehicle as
            does not exceed $40,000./

            / `(2) DEFINITIONS AND SPECIAL RULES- For purposes of this
            subsection--/

                  / `(A) QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE-
                  The term `qualified plug-in electric drive motor
                  vehicle' means any new qualified plug-in electric
                  drive motor vehicle (as defined in section 30D(c),
                  determined without regard to paragraphs (4) and (6)
                  thereof)./

                  / `(B) PLUG-IN TRACTION BATTERY MODULE- The term
                  `plug-in traction battery module' means an
                  electro-chemical energy storage device which--/

                        / `(i) which has a traction battery capacity of
                        not less than 2.5 kilowatt hours,/

                        / `(ii) which is equipped with an electrical
                        plug by means of which it can be energized and
                        recharged when plugged into an external source
                        of electric power,/

                        / `(iii) which consists of a standardized
                        configuration and is mass produced,/

                        / `(iv) which has been tested and approved by
                        the National Highway Transportation Safety
                        Administration as compliant with applicable
                        motor vehicle and motor vehicle equipment safety
                        standards when installed by a mechanic with
                        standardized training in protocols established
                        by the battery manufacturer as part of a
                        nationwide distribution program,/

                        / `(v) which complies with the requirements of
                        section 32918 of title 49, United States Code, and/

                        / `(vi) which is certified by a battery
                        manufacturer as meeting the requirements of
                        clauses (i) through (v)./

                  / `(C) CREDIT ALLOWED TO LESSOR OF BATTERY MODULE- In
                  the case of a plug-in traction battery module which is
                  leased to the taxpayer, the credit allowed under this
                  subsection shall be allowed to the lessor of the
                  plug-in traction battery module./

                  / `(D) CREDIT ALLOWED IN ADDITION TO OTHER CREDITS-
                  The credit allowed under this subsection shall be
                  allowed with respect to a motor vehicle
                  notwithstanding whether a credit has been allowed with
                  respect to such motor vehicle under this section
                  (other than this subsection) in any preceding taxable
                  year./

            / `(3) TERMINATION- This subsection shall not apply to
            conversions made after December 31, 2012.'./

      / (b) Credit Treated as Part of Alternative Motor Vehicle Credit-
      Section 30B(a) is amended by striking `and' at the end of
      paragraph (3), by striking the period at the end of paragraph (4)
      and inserting `, and', and by adding at the end the following new
      paragraph:/

            / `(5) the plug-in conversion credit determined under
            subsection (i).'./

      / (c) No Recapture for Vehicles Converted to Qualified Plug-in
      Electric Drive Motor Vehicles- Paragraph (8) of section 30B(h) is
      amended by adding at the end the following: `, except that no
      benefit shall be recaptured if such property ceases to be eligible
      for such credit by reason of conversion to a qualified plug-in
      electric drive motor vehicle.'./

      / (d) Effective Date- The amendments made by this section shall
      apply to property placed in service after December 31, 2008, in
      taxable years beginning after such date./


        /Subtitle C--Tax Incentives for Business/


    //PART I--TEMPORARY INVESTMENT INCENTIVES//


      /SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING
      2009./

      / (a) Extension of Special Allowance- /

            / (1) IN GENERAL- Paragraph (2) of section 168(k) is amended--/

                  / (A) by striking `January 1, 2010' and inserting
                  `January 1, 2011', and/

                  / (B) by striking `January 1, 2009' each place it
                  appears and inserting `January 1, 2010'./

            / (2) CONFORMING AMENDMENTS- /

                  / (A) The heading for subsection (k) of section 168 is
                  amended by striking `January 1, 2009' and inserting
                  `January 1, 2010'./

                  / (B) 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'./

                  / (C) Subparagraph (B) of section 168(l)(5) is amended
                  by striking `January 1, 2009' and inserting `January
                  1, 2010'./

                  / (D) Subparagraph (C) of section 168(n)(2) is amended
                  by striking `January 1, 2009' and inserting `January
                  1, 2010'./

                  / (E) Subparagraph (B) of section 1400N(d)(3) is
                  amended by striking `January 1, 2009' and inserting
                  `January 1, 2010'./

            / (3) TECHNICAL AMENDMENT- 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 (iii), and/

                  / (C) by inserting after clause (i) the following new
                  clause:/

                        / `(ii) `April 1, 2008' shall be substituted for
                        `January 1, 2008' in subparagraph (A)(iii)(I)
                        thereof, and'./

      / (b) Extension of Election To Accelerate the AMT and Research
      Credits in Lieu of Bonus Depreciation- Section 168(k)(4) (relating
      to election to accelerate the AMT and research credits in lieu of
      bonus depreciation) is amended--/

            / (1) by striking `2009' and inserting `2010'in subparagraph
            (D)(iii) (as redesignated by subsection (a)(3)), and/

            / (2) by adding at the end the following new subparagraph:/

                  / `(H) SPECIAL RULES FOR EXTENSION PROPERTY- /

                        / `(i) TAXPAYERS PREVIOUSLY ELECTING
                        ACCELERATION- In the case of a taxpayer who made
                        the election under subparagraph (A) for its
                        first taxable year ending after March 31, 2008--/

                              / `(I) the taxpayer may elect not to have
                              this paragraph apply to extension
                              property, but/

                              / `(II) if the taxpayer does not make the
                              election under subclause (I), in applying
                              this paragraph to the taxpayer a separate
                              bonus depreciation amount, maximum amount,
                              and maximum increase amount shall be
                              computed and applied to eligible qualified
                              property which is extension property and
                              to eligible qualified property which is
                              not extension property./

                        / `(ii) TAXPAYERS NOT PREVIOUSLY ELECTING
                        ACCELERATION- In the case of a taxpayer who did
                        not make the election under subparagraph (A) for
                        its first taxable year ending after March 31,
                        2008--/

                              / `(I) the taxpayer may elect to have this
                              paragraph apply to its first taxable year
                              ending after December 31, 2008, and each
                              subsequent taxable year, and/

                              / `(II) if the taxpayer makes the election
                              under subclause (I), this paragraph shall
                              only apply to eligible qualified property
                              which is extension property./

                        / `(iii) EXTENSION PROPERTY- For purposes of
                        this subparagraph, the term `extension property'
                        means property which is eligible qualified
                        property solely by reason of the extension of
                        the application of the special allowance under
                        paragraph (1) pursuant to the amendments made by
                        section 1201(a) of the American Recovery and
                        Reinvestment Tax Act of 2009 (and the
                        application of such extension to this paragraph
                        pursuant to the amendment made by section
                        1201(b)(1) of such Act).'./

      / (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- The amendments made by subsection
            (a)(3) shall apply to taxable years ending after March 31,
            2008./


      /SEC. 1202. 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 II--5-YEAR CARRYBACK OF OPERATING LOSSES//


      /SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES./

      / (a) In General- Subparagraph (H) of section 172(b)(1) is amended
      to read as follows:/

                  / `(H) CARRYBACK FOR 2008 AND 2009 NET OPERATING LOSSES- /

                        / `(i) IN GENERAL- In the case of an applicable
                        2008 or 2009 net operating loss with respect to
                        which the taxpayer has elected the application
                        of this subparagraph--/

                              / `(I) subparagraph (A)(i) shall be
                              applied by substituting any whole number
                              elected by the taxpayer which is more than
                              2 and less than 6 for `2',/

                              / `(II) subparagraph (E)(ii) shall be
                              applied by substituting the whole number
                              which is one less than the whole number
                              substituted under subclause (II) for `2', and/

                              / `(III) subparagraph (F) shall not apply./

                        / `(ii) APPLICABLE 2008 OR 2009 NET OPERATING
                        LOSS- For purposes of this subparagraph, the
                        term `applicable 2008 or 2009 net operating
                        loss' means--/

                              / `(I) the taxpayer's net operating loss
                              for any taxable year ending in 2008 or
                              2009, or/

                              / `(II) if the taxpayer elects to have
                              this subclause apply in lieu of subclause
                              (I), the taxpayer's net operating loss for
                              any taxable year beginning in 2008 or 2009./

                        / `(iii) ELECTION- Any election under this
                        subparagraph shall be made in such manner as may
                        be prescribed by the Secretary, and shall be
                        made by the due date (including extension of
                        time) for filing the taxpayer's return for the
                        taxable year of the net operating loss. Any such
                        election, once made, shall be irrevocable./

                        / `(iv) COORDINATION WITH ALTERNATIVE TAX NET
                        OPERATING LOSS DEDUCTION- In the case of a
                        taxpayer who elects to have clause (ii)(II)
                        apply, section 56(d)(1)(A)(ii) shall be applied
                        by substituting `ending during 2001 or 2002 or
                        beginning during 2008 or 2009' for `ending
                        during 2001, 2002, 2008, or 2009'.'./

      / (b) Alternative Tax Net Operating Loss Deduction- Subclause (I)
      of section 56(d)(1)(A)(ii) is amended to read as follows:/

                              / `(I) the amount of such deduction
                              attributable to the sum of carrybacks of
                              net operating losses from taxable years
                              ending during 2001, 2002, 2008, or 2009
                              and carryovers of net operating losses to
                              such taxable years, or'./

      / (c) Loss From Operations of Life Insurance Companies- Subsection
      (b) of section 810 is amended by adding at the end the following
      new paragraph:/

            / `(4) CARRYBACK FOR 2008 AND 2009 LOSSES- /

                  / `(A) IN GENERAL- In the case of an applicable 2008
                  or 2009 loss from operations with respect to which the
                  taxpayer has elected the application of this
                  paragraph, paragraph (1)(A) shall be applied, at the
                  election of the taxpayer, by substituting `5' or `4'
                  for `3'./

                  / `(B) APPLICABLE 2008 OR 2009 LOSS FROM OPERATIONS-
                  For purposes of this paragraph, the term `applicable
                  2008 or 2009 loss from operations' means--/

                        / `(i) the taxpayer's loss from operations for
                        any taxable year ending in 2008 or 2009, or/

                        / `(ii) if the taxpayer elects to have this
                        clause apply in lieu of clause (i), the
                        taxpayer's loss from operations for any taxable
                        year beginning in 2008 or 2009./

                  / `(C) ELECTION- Any election under this paragraph
                  shall be made in such manner as may be prescribed by
                  the Secretary, and shall be made by the due date
                  (including extension of time) for filing the
                  taxpayer's return for the taxable year of the loss
                  from operations. Any such election, once made, shall
                  be irrevocable./

                  / `(D) COORDINATION WITH ALTERNATIVE TAX NET OPERATING
                  LOSS DEDUCTION- In the case of a taxpayer who elects
                  to have subparagraph (B)(ii) apply, section
                  56(d)(1)(A)(ii) shall be applied by substituting
                  `ending during 2001 or 2002 or beginning during 2008
                  or 2009' for `ending during 2001, 2002, 2008, or 2009'.'./

      / (d) Conforming Amendment- Section 172 is amended by striking
      subsection (k) and by redesignating subsection (l) as 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(k) 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. 1212. 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 III--INCENTIVES FOR NEW JOBS//


      /SEC. 1221. 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 the period beginning on September
                              1, 2001, and ending on December 31, 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 IV--CANCELLATION OF INDEBTEDNESS//


      /SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM
      INDEBTEDNESS DISCHARGED BY THE REPURCHASE OF A DEBT INSTRUMENT./

      / (a) In General- Section 108 (relating to income from discharge
      of indebtedness) is amended by adding at the end the following new
      subsection:/

      / `(i) Deferral and Ratable Inclusion of Income Arising From
      Indebtedness Discharged by the Repurchase of a Debt Instrument- /

            / `(1) IN GENERAL- Notwithstanding section 61, income from
            the discharge of indebtedness in connection with the
            repurchase of a debt instrument after December 31, 2008, and
            before January 1, 2011, shall be includible in gross income
            ratably over the 8-taxable-year period beginning with--/

                  / `(A) in the case of a repurchase occurring in 2009,
                  the second taxable year following the taxable year in
                  which the repurchase occurs, and/

                  / `(B) in the case of a repurchase occurring in 2010,
                  the taxable year following the taxable year in which
                  the repurchase occurs./

            / `(2) DEBT INSTRUMENT- For purposes of this subsection, the
            term `debt instrument' means a bond, debenture, note,
            certificate, or any other instrument or contractual
            arrangement constituting indebtedness (within the meaning of
            section 1275(a)(1))./

            / `(3) REPURCHASE- For purposes of this subsection, the term
            `repurchase' means, with respect to any debt instrument, a
            cash purchase of the debt instrument by--/

                  / `(A) the debtor which issued the debt instrument, or/

                  / `(B) any person related to such debtor./

            /For purposes of subparagraph (B), the determination of
            whether a person is related to another person shall be made
            in the same manner as under subsection (e)(4)./

            / `(4) AUTHORITY TO PRESCRIBE REGULATIONS- The Secretary may
            prescribe such regulations as may be necessary or
            appropriate for purposes of applying this subsection.'./

      / (b) Effective Date- The amendments made by this section shall
      apply to discharges in taxable years ending after December 31, 2008./


    //PART V--QUALIFIED SMALL BUSINESS STOCK//


      /SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSINESS
      STOCK FOR 2009 AND 2010./

      / (a) In General- Section 1202(a) is amended by adding at the end
      the following new paragraph:/

            / `(3) SPECIAL RULES FOR 2009 AND 2010- In the case of
            qualified small business stock acquired after the date of
            the enactment of this paragraph and before January 1, 2011--/

                  / `(A) paragraph (1) shall be applied by substituting
                  `75 percent' for `50 percent', and/

                  / `(B) paragraph (2) shall not apply.'./

      / (b) Effective Date- The amendment made by this section shall
      apply to stock acquired after the date of the enactment of this Act./


    //PART VI--PARITY FOR TRANSPORTATION FRINGE BENEFITS//


      /SEC. 1251. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT
      BENEFITS AND TRANSIT PASSES./

      / (a) In General- Paragraph (2) of section 132(f) is amended by
      adding at the end the following flush sentence:/

            /`In the case of any month beginning on or after the date of
            the enactment of this sentence and before January 1, 2011,
            subparagraph (A) shall be applied as if the dollar amount
            therein were the same as the dollar amount under
            subparagraph (B) (as in effect for such month).'./

      / (b) Effective Date- The amendment made by this section shall
      apply to months beginning on or after the date of the enactment of
      this section./


    //PART VII--S CORPORATIONS//


      /SEC. 1261. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN
      GAINS TAX./

      / (a) In General- Paragraph (7) of section 1374(d) (relating to
      definitions and special rules) is amended to read as follows:/

            / `(7) RECOGNITION PERIOD- /

                  / `(A) IN GENERAL- The term `recognition period' means
                  the 10-year period beginning with the 1st day of the
                  1st taxable year for which the corporation was an S
                  corporation./

                  / `(B) SPECIAL RULE FOR 2009 AND 2010- In the case of
                  any taxable year beginning in 2009 or 2010, no tax
                  shall be imposed on the net unrecognized built-in gain
                  of an S corporation if the 7th taxable year in the
                  recognition period preceded such taxable year. The
                  preceding sentence shall be applied separately with
                  respect to any asset to which paragraph (8) applies./

                  / `(C) SPECIAL RULE FOR DISTRIBUTIONS TO SHAREHOLDERS-
                  For purposes of applying this section to any amount
                  includible in income by reason of distributions to
                  shareholders pursuant to section 593(e)--/

                        / `(i) subparagraph (A) shall be applied without
                        regard to the phrase `10-year', and/

                        / `(ii) subparagraph (B) shall not apply.'./

      / (b) Effective Date- The amendment made by this section shall
      apply to taxable years beginning after December 31, 2008./


    //PART VIII--BROADBAND INCENTIVES//


      /SEC. 1271. BROADBAND INTERNET ACCESS TAX CREDIT./

      / (a) In General- Subpart E of part IV of chapter 1 of the
      Internal Revenue Code of 1986 (relating to rules for computing
      investment credit), as amended by this Act, is amended by
      inserting after section 48C the following new section:/


      /`SEC. 48D. BROADBAND INTERNET ACCESS CREDIT./

      / `(a) General Rule- For purposes of section 46, the broadband
      credit for any taxable year is the sum of--/

            / `(1) the current generation broadband credit, plus/

            / `(2) the next generation broadband credit./

      / `(b) Current Generation Broadband Credit; Next Generation
      Broadband Credit- For purposes of this section--/

            / `(1) CURRENT GENERATION BROADBAND CREDIT- The current
            generation broadband credit for any taxable year is equal to
            10 percent (20 percent in the case of qualified subscribers
            which are unserved subscribers) of the qualified broadband
            expenditures incurred with respect to qualified equipment
            providing current generation broadband services to qualified
            subscribers and taken into account with respect to such
            taxable year./

            / `(2) NEXT GENERATION BROADBAND CREDIT- The next generation
            broadband credit for any taxable year is equal to 20 percent
            of the qualified broadband expenditures incurred with
            respect to qualified equipment providing next generation
            broadband services to qualified subscribers and taken into
            account with respect to such taxable year./

      / `(c) When Expenditures Taken Into Account- For purposes of this
      section--/

            / `(1) IN GENERAL- Qualified broadband expenditures with
            respect to qualified equipment shall be taken into account
            with respect to the first taxable year in which--/

                  / `(A) current generation broadband services are
                  provided through such equipment to qualified
                  subscribers, or/

                  / `(B) next generation broadband services are provided
                  through such equipment to qualified subscribers./

            / `(2) LIMITATION- /

                  / `(A) IN GENERAL- Qualified broadband expenditures
                  shall be taken into account under paragraph (1) only
                  with respect to qualified equipment--/

                        / `(i) the original use of which commences with
                        the taxpayer, and/

                        / `(ii) which is placed in service, after
                        December 31, 2008, and before January 1, 2011./

                  / `(B) SALE-LEASEBACKS- For purposes of subparagraph
                  (A), if property--/

                        / `(i) is originally placed in service after
                        December 31, 2008, by any person, and/

                        / `(ii) sold and leased back by such person
                        within 3 months after the date such property was
                        originally placed in service,/

                  /such property shall be treated as originally placed
                  in service not earlier than the date on which such
                  property is used under the leaseback referred to in
                  clause (ii)./

      / `(d) Special Allocation Rules for Current Generation Broadband
      Services- For purposes of determining the current generation
      broadband credit under subsection (a)(1) with respect to qualified
      equipment through which current generation broadband services are
      provided, if the qualified equipment is capable of serving both
      qualified subscribers and other subscribers, the qualified
      broadband expenditures shall be multiplied by a fraction--/

            / `(1) the numerator of which is the sum of the number of
            potential qualified subscribers within the rural areas and
            the underserved areas and the unserved areas which the
            equipment is capable of serving with current generation
            broadband services, and/

            / `(2) the denominator of which is the total potential
            subscriber population of the area which the equipment is
            capable of serving with current generation broadband services./

      / `(e) Definitions- For purposes of this section--/

            / `(1) ANTENNA- The term `antenna' means any device used to
            transmit or receive signals through the electromagnetic
            spectrum, including satellite equipment./

            / `(2) CABLE OPERATOR- The term `cable operator' has the
            meaning given such term by section 602(5) of the
            Communications Act of 1934 (47 U.S.C. 522(5))./

            / `(3) COMMERCIAL MOBILE SERVICE CARRIER- The term
            `commercial mobile service carrier' means any person
            authorized to provide commercial mobile radio service as
            defined in section 20.3 of title 47, Code of Federal
            Regulations./

            / `(4) CURRENT GENERATION BROADBAND SERVICE- The term
            `current generation broadband service' means the
            transmission of signals at a rate of at least 5,000,000 bits
            per second to the subscriber and at least 1,000,000 bits per
            second from the subscriber (at least 3,000,000 bits per
            second to the subscriber and at least 768,000 bits per
            second from the subscriber in the case of service through
            radio transmission of energy)./

            / `(5) MULTIPLEXING OR DEMULTIPLEXING- The term
            `multiplexing' means the transmission of 2 or more signals
            over a single channel, and the term `demultiplexing' means
            the separation of 2 or more signals previously combined by
            compatible multiplexing equipment./

            / `(6) NEXT GENERATION BROADBAND SERVICE- The term `next
            generation broadband service' means the transmission of
            signals at a rate of at least 100,000,000 bits per second to
            the subscriber (or its equivalent when the data rate is
            measured before being compressed for transmission) and at
            least 20,000,000 bits per second from the subscriber (or its
            equivalent as so measured)./

            / `(7) NONRESIDENTIAL SUBSCRIBER- The term `nonresidential
            subscriber' means any person who purchases broadband
            services which are delivered to the permanent place of
            business of such person./

            / `(8) OPEN VIDEO SYSTEM OPERATOR- The term `open video
            system operator' means any person authorized to provide
            service under section 653 of the Communications Act of 1934
            (47 U.S.C. 573)./

            / `(9) OTHER WIRELESS CARRIER- The term `other wireless
            carrier' means any person (other than a telecommunications
            carrier, commercial mobile service carrier, cable operator,
            open video system operator, or satellite carrier) providing
            current generation broadband services or next generation
            broadband service to subscribers through the radio
            transmission of energy./

            / `(10) PACKET SWITCHING- The term `packet switching' means
            controlling or routing the path of a digitized transmission
            signal which is assembled into packets or cells./

            / `(11) PROVIDER- The term `provider' means, with respect to
            any qualified equipment any--/

                  / `(A) cable operator,/

                  / `(B) commercial mobile service carrier,/

                  / `(C) open video system operator,/

                  / `(D) satellite carrier,/

                  / `(E) telecommunications carrier, or/

                  / `(F) other wireless carrier,/

            /providing current generation broadband services or next
            generation broadband services to subscribers through such
            qualified equipment./

            / `(12) PROVISION OF SERVICES- A provider shall be treated
            as providing services to 1 or more subscribers if--/

                  / `(A) such a subscriber has been passed by the
                  provider's equipment and can be connected to such
                  equipment for a standard connection fee,/

                  / `(B) the provider is physically able to deliver
                  current generation broadband services or next
                  generation broadband services, as applicable, to such
                  a subscriber without making more than an insignificant
                  investment with respect to such subscriber,/

                  / `(C) the provider has made reasonable efforts to
                  make such subscribers aware of the availability of
                  such services,/

                  / `(D) such services have been purchased by 1 or more
                  such subscribers, and/

                  / `(E) such services are made available to such
                  subscribers at average prices comparable to those at
                  which the provider makes available similar services in
                  any areas in which the provider makes available such
                  services./

            / `(13) QUALIFIED EQUIPMENT- /

                  / `(A) IN GENERAL- The term `qualified equipment'
                  means property with respect to which depreciation (or
                  amortization in lieu of depreciation) is allowable and
                  which provides current generation broadband services
                  or next generation broadband services--/

                        / `(i) at least a majority of the time during
                        periods of maximum demand to each subscriber who
                        is utilizing such services, and/

                        / `(ii) in a manner substantially the same as
                        such services are provided by the provider to
                        subscribers through equipment with respect to
                        which no credit is allowed under subsection (a)(1)./

                  / `(B) ONLY CERTAIN INVESTMENT TAKEN INTO ACCOUNT-
                  Except as provided in subparagraph (C) or (D),
                  equipment shall be taken into account under
                  subparagraph (A) only to the extent it--/

                        / `(i) extends from the last point of switching
                        to the outside of the unit, building, dwelling,
                        or office owned or leased by a subscriber in the
                        case of a telecommunications carrier or
                        broadband-over-powerline operator,/

                        / `(ii) extends from the customer side of the
                        mobile telephone switching office to a
                        transmission/receive antenna (including such
                        antenna) owned or leased by a subscriber in the
                        case of a commercial mobile service carrier,/

                        / `(iii) extends from the customer side of the
                        headend to the outside of the unit, building,
                        dwelling, or office owned or leased by a
                        subscriber in the case of a cable operator or
                        open video system operator, or/

                        / `(iv) extends from a transmission/receive
                        antenna (including such antenna) which transmits
                        and receives signals to or from multiple
                        subscribers, to a transmission/receive antenna
                        (including such antenna) on the outside of the
                        unit, building, dwelling, or office owned or
                        leased by a subscriber in the case of a
                        satellite carrier or other wireless carrier,
                        unless such other wireless carrier is also a
                        telecommunications carrier./

                  / `(C) PACKET SWITCHING EQUIPMENT- Packet switching
                  equipment, regardless of location, shall be taken into
                  account under subparagraph (A) only if it is deployed
                  in connection with equipment described in subparagraph
                  (B) and is uniquely designed to perform the function
                  of packet switching for current generation broadband
                  services or next generation broadband services, but
                  only if such packet switching is the last in a series
                  of such functions performed in the transmission of a
                  signal to a subscriber or the first in a series of
                  such functions performed in the transmission of a
                  signal from a subscriber./

                  / `(D) MULTIPLEXING AND DEMULTIPLEXING EQUIPMENT-
                  Multiplexing and demultiplexing equipment shall be
                  taken into account under subparagraph (A) only to the
                  extent it is deployed in connection with equipment
                  described in subparagraph (B) and is uniquely designed
                  to perform the function of multiplexing and
                  demultiplexing packets or cells of data and making
                  associated application adaptions, but only if such
                  multiplexing or demultiplexing equipment is located
                  between packet switching equipment described in
                  subparagraph (C) and the subscriber's premises./

            / `(14) QUALIFIED BROADBAND EXPENDITURE- /

                  / `(A) IN GENERAL- The term `qualified broadband
                  expenditure' means any amount--/

                        / `(i) chargeable to capital account with
                        respect to the purchase and installation of
                        qualified equipment (including any upgrades
                        thereto) for which depreciation is allowable
                        under section 168, and/

                        / `(ii) incurred after December 31, 2008, and
                        before January 1, 2011./

                  / `(B) CERTAIN SATELLITE EXPENDITURES EXCLUDED- Such
                  term shall not include any expenditure with respect to
                  the launching of any satellite equipment./

                  / `(C) LEASED EQUIPMENT- Such term shall include so
                  much of the purchase price paid by the lessor of
                  equipment subject to a lease described in subsection
                  (c)(2)(B) as is attributable to expenditures incurred
                  by the lessee which would otherwise be described in
                  subparagraph (A)./

            / `(15) QUALIFIED SUBSCRIBER- The term `qualified
            subscriber' means--/

                  / `(A) with respect to the provision of current
                  generation broadband services--/

                        / `(i) any nonresidential subscriber maintaining
                        a permanent place of business in a rural area,
                        an underserved area, or an unserved area, or/

                        / `(ii) any residential subscriber residing in a
                        dwelling located in a rural area, an underserved
                        area, or an unserved area which is not a
                        saturated market, and/

                  / `(B) with respect to the provision of next
                  generation broadband services--/

                        / `(i) any nonresidential subscriber maintaining
                        a permanent place of business in a rural area,
                        an underserved area, or an unserved area , or/

                        / `(ii) any residential subscriber./

            / `(16) RESIDENTIAL SUBSCRIBER- The term `residential
            subscriber' means any individual who purchases broadband
            services which are delivered to such individual's dwelling./

            / `(17) RURAL AREA- The term `rural area' means any census
            tract which--/

                  / `(A) is not within 10 miles of any incorporated or
                  census designated place containing more than 25,000
                  people, and/

                  / `(B) is not within a county or county equivalent
                  which has an overall population density of more than
                  500 people per square mile of land./

            / `(18) RURAL SUBSCRIBER- The term `rural subscriber' means
            any residential subscriber residing in a dwelling located in
            a rural area or nonresidential subscriber maintaining a
            permanent place of business located in a rural area./

            / `(19) SATELLITE CARRIER- The term `satellite carrier'
            means any person using the facilities of a satellite or
            satellite service licensed by the Federal Communications
            Commission and operating in the Fixed-Satellite Service
            under part 25 of title 47 of the Code of Federal Regulations
            or the Direct Broadcast Satellite Service under part 100 of
            title 47 of such Code to establish and operate a channel of
            communications for distribution of signals, and owning or
            leasing a capacity or service on a satellite in order to
            provide such point-to-multipoint distribution./

            / `(20) SATURATED MARKET- The term `saturated market' means
            any census tract in which, as of the date of the enactment
            of this section--/

                  / `(A) current generation broadband services have been
                  provided by a single provider to 85 percent or more of
                  the total number of potential residential subscribers
                  residing in dwellings located within such census
                  tract, and/

                  / `(B) such services can be utilized--/

                        / `(i) at least a majority of the time during
                        periods of maximum demand by each such
                        subscriber who is utilizing such services, and/

                        / `(ii) in a manner substantially the same as
                        such services are provided by the provider to
                        subscribers through equipment with respect to
                        which no credit is allowed under subsection (a)(1)./

            / `(21) SUBSCRIBER- The term `subscriber' means any person
            who purchases current generation broadband services or next
            generation broadband services./

            / `(22) TELECOMMUNICATIONS CARRIER- The term
            `telecommunications carrier' has the meaning given such term
            by section 3(44) of the Communications Act of 1934 (47
            U.S.C. 153(44)), but--/

                  / `(A) includes all members of an affiliated group of
                  which a telecommunications carrier is a member, and/

                  / `(B) does not include any commercial mobile service
                  carrier./

            / `(23) TOTAL POTENTIAL SUBSCRIBER POPULATION- The term
            `total potential subscriber population' means, with respect
            to any area and based on the most recent census data, the
            total number of potential residential subscribers residing
            in dwellings located in such area and potential
            nonresidential subscribers maintaining permanent places of
            business located in such area./

            / `(24) UNDERSERVED AREA- The term `underserved area' means
            any census tract which is located in--/

                  / `(A) an empowerment zone or enterprise community
                  designated under section 1391,/

                  / `(B) the District of Columbia Enterprise Zone
                  established under section 1400,/

                  / `(C) a renewal community designated under section
                  1400E, or/

                  / `(D) a low-income community designated under section
                  45D./

            / `(25) UNDERSERVED SUBSCRIBER- The term `underserved
            subscriber' means any residential subscriber residing in a
            dwelling located in an underserved area or nonresidential
            subscriber maintaining a permanent place of business located
            in an underserved area./

            / `(26) UNSERVED AREA- The term `unserved area' means any
            census tract in which no current generation broadband
            services are provided, as certified by the State in which
            such tract is located not later than September 30, 2009./

            / `(27) UNSERVED SUBSCRIBER- The term `unserved subscriber'
            means any residential subscriber residing in a dwelling
            located in an unserved area or nonresidential subscriber
            maintaining a permanent place of business located in an
            unserved area.'./

      / (b) Credit To Be Part of Investment Credit- Section 46 (relating
      to the amount of investment credit), as amended by this Act, is
      amended by striking `and' at the end of paragraph (4), by striking
      the period at the end of paragraph (5) and inserting `, and', and
      by adding at the end the following:/

            / `(6) the broadband Internet access credit.'/

      / (c) Special Rule for Mutual or Cooperative Telephone Companies-
      Section 501(c)(12)(B) (relating to list of exempt organizations)
      is amended by striking `or' at the end of clause (iii), by
      striking the period at the end of clause (iv) and inserting `,
      or', and by adding at the end the following new clause:/

                        / `(v) from the sale of property subject to a
                        lease described in section 48D(c)(2)(B), but
                        only to the extent such income does not in any
                        year exceed an amount equal to the credit for
                        qualified broadband expenditures which would be
                        determined under section 48D for such year if
                        the mutual or cooperative telephone company was
                        not exempt from taxation and was treated as the
                        owner of the property subject to such lease.'./

      / (d) Conforming Amendments- /

            / (1) Section 49(a)(1)(C), as amended by this Act, is
            amended by striking `and' at the end of clause (iv), by
            striking the period at the end of clause (v) and inserting
            `, and', and by adding after clause (v) the following new
            clause:/

                        / `(vi) the portion of the basis of any
                        qualified equipment attributable to qualified
                        broadband expenditures under section 48D.'./

            / (2) The table of sections for subpart E of part IV of
            subchapter A of chapter 1, as amended by this Act, is
            amended by inserting after the item relating to section 48C
            the following:/

            /`Sec. 48D. Broadband internet access credit'./

      / (e) Designation of Census Tracts- /

            / (1) IN GENERAL- The Secretary of the Treasury shall, not
            later than 90 days after the date of the enactment of this
            Act, designate and publish those census tracts meeting the
            criteria described in paragraphs (17), (23), (24), and (26)
            of section 48D(e) of the Internal Revenue Code of 1986 (as
            added by this section). In making such designations, the
            Secretary of the Treasury shall consult with such other
            departments and agencies as the Secretary determines
            appropriate./

            / (2) SATURATED MARKET- /

                  / (A) IN GENERAL- For purposes of designating and
                  publishing those census tracts meeting the criteria
                  described in subsection (e)(20) of such section 48D--/

                        / (i) the Secretary of the Treasury shall
                        prescribe not later than 30 days after the date
                        of the enactment of this Act the form upon which
                        any provider which takes the position that it
                        meets such criteria with respect to any census
                        tract shall submit a list of such census tracts
                        (and any other information required by the
                        Secretary) not later than 60 days after the date
                        of the publication of such form, and/

                        / (ii) the Secretary of the Treasury shall
                        publish an aggregate list of such census tracts
                        submitted and the applicable providers not later
                        than 30 days after the last date such
                        submissions are allowed under clause (i)./

                  / (B) NO SUBSEQUENT LISTS REQUIRED- The Secretary of
                  the Treasury shall not be required to publish any list
                  of census tracts meeting such criteria subsequent to
                  the list described in subparagraph (A)(ii)./

                  / (C) AUTHORITY TO DISREGARD FALSE SUBMISSIONS- In
                  addition to imposing any other applicable penalties,
                  the Secretary of the Treasury shall have the
                  discretion to disregard any form described in
                  subparagraph (A)(i) on which a provider knowingly
                  submitted false information./

      / (f) Other Regulatory Matters- /

            / (1) PROHIBITION- No Federal or State agency or
            instrumentality shall adopt regulations or ratemaking
            procedures that would have the effect of eliminating or
            reducing any credit or portion thereof allowed under section
            48D of the Internal Revenue Code of 1986 (as added by this
            section) or otherwise subverting the purpose of this section./

            / (2) TREASURY REGULATORY AUTHORITY- It is the intent of
            Congress in providing the broadband Internet access credit
            under section 48D of the Internal Revenue Code of 1986 (as
            added by this section) to provide incentives for the
            purchase, installation, and connection of equipment and
            facilities offering expanded broadband access to the
            Internet for users in certain low income and rural areas of
            the United States, as well as to residential users
            nationwide, in a manner that maintains competitive
            neutrality among the various classes of providers of
            broadband services. Accordingly, the Secretary of the
            Treasury shall prescribe such regulations as may be
            necessary or appropriate to carry out the purposes of
            section 48D of such Code, including--/

                  / (A) regulations to determine how and when a taxpayer
                  that incurs qualified broadband expenditures satisfies
                  the requirements of section 48D of such Code to
                  provide broadband services, and/

                  / (B) regulations describing the information, records,
                  and data taxpayers are required to provide the
                  Secretary to substantiate compliance with the
                  requirements of section 48D of such Code./

      / (g) Effective Date- The amendments made by this section shall
      apply to expenditures incurred after December 31, 2008./


    //PART IX--CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON
    CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE//


      /SEC. 1281. 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 D--Manufacturing Recovery Provisions/


      /SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL
      DEVELOPMENT BONDS TO FACILITIES MANUFACTURING INTANGIBLE PROPERTY./

      / (a) In General- Subparagraph (C) of section 144(a)(12) is amended--/

            / (1) by striking `For purposes of this paragraph, the term'
            and inserting `For purposes of this paragraph--/

                        / `(i) IN GENERAL- The term', and/

            / (2) by striking the last sentence and inserting the
            following new clauses:/

                        / `(ii) CERTAIN FACILITIES INCLUDED- Such term
                        includes facilities which are directly related
                        and ancillary to a manufacturing facility
                        (determined without regard to this clause) if--/

                              / `(I) such facilities are located on the
                              same site as the manufacturing facility, and/

                              / `(II) not more than 25 percent of the
                              net proceeds of the issue are used to
                              provide such facilities./

                        / `(iii) SPECIAL RULES FOR BONDS ISSUED IN 2009
                        AND 2010- In the case of any issue made after
                        the date of enactment of this clause and before
                        January 1, 2011, clause (ii) shall not apply and
                        the net proceeds from a bond shall be considered
                        to be used to provide a manufacturing facility
                        if such proceeds are used to provide--/

                              / `(I) a facility which is used in the
                              creation or production of intangible
                              property which is described in section
                              197(d)(1)(C)(iii), or/

                              / `(II) a facility which is functionally
                              related and subordinate to a manufacturing
                              facility (determined without regard to
                              this subclause) if such facility is
                              located on the same site as the
                              manufacturing facility.'./

      / (b) Effective Date- The amendments made by this section shall
      apply to bonds issued after the date of the enactment of this Act./


      /SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY FACILITIES./

      / (a) In General- Section 46 (relating to amount of credit) is
      amended by striking `and' at the end of paragraph (3), by striking
      the period at the end of paragraph (4), and by adding at the end
      the following new paragraph:/

            / `(5) the qualifying advanced energy project credit.'./

      / (b) Amount of Credit- Subpart E of part IV of subchapter A of
      chapter 1 (relating to rules for computing investment credit) is
      amended by inserting after section 48B the following new section:/


      /`SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT./

      / `(a) In General- For purposes of section 46, the qualifying
      advanced energy project credit for any taxable year is an amount
      equal to 30 percent of the qualified investment for such taxable
      year with respect to any qualifying advanced energy project of the
      taxpayer./

      / `(b) Qualified Investment- /

            / `(1) IN GENERAL- For purposes of subsection (a), the
            qualified investment for any taxable year is the basis of
            eligible property placed in service by the taxpayer during
            such taxable year which is part of a qualifying advanced
            energy project--/

                  / `(A)(i) the construction, reconstruction, or
                  erection of which is completed by the taxpayer after
                  October 31, 2008, or/

                  / `(ii) which is acquired by the taxpayer if the
                  original use of such eligible property commences with
                  the taxpayer after October 31, 2008, and/

                  / `(B) with respect to which depreciation (or
                  amortization in lieu of depreciation) is allowable./

            / `(2) CERTAIN QUALIFIED PROGRESS EXPENDITURES RULES MADE
            APPLICABLE- Rules similar to the rules of subsections (c)(4)
            and (d) of section 46 (as in effect on the day before the
            enactment of the Revenue Reconciliation Act of 1990) shall
            apply for purposes of this section./

            / `(3) LIMITATION- The amount which is treated for all
            taxable years with respect to any qualifying advanced energy
            project shall not exceed the amount designated by the
            Secretary as eligible for the credit under this section./

      / `(c) Definitions- /

            / `(1) QUALIFYING ADVANCED ENERGY PROJECT- /

                  / `(A) IN GENERAL- The term `qualifying advanced
                  energy project' means a project--/

                        / `(i) which re-equips, expands, or establishes
                        a manufacturing facility for the production of
                        property which is--/

                              / `(I) designed to be used to produce
                              energy from the sun, wind, geothermal
                              deposits (within the meaning of section
                              613(e)(2)), or other renewable resources,/

                              / `(II) designed to manufacture fuel
                              cells, microturbines, or an energy storage
                              system for use with electric or
                              hybrid-electric motor vehicles,/

                              / `(III) designed to manufacture electric
                              grids to support the transmission of
                              intermittent sources of renewable energy,
                              including storage of such energy,/

                              / `(IV) designed to capture and sequester
                              carbon dioxide emissions,/

                              / `(V) designed to refine or blend
                              renewable fuels or to produce energy
                              conservation technologies (including
                              energy-conserving lighting technologies
                              and smart grid technologies), or/

                              / `(VI) other advanced energy property
                              designed to reduce greenhouse gas
                              emissions as may be determined by the
                              Secretary, and/

                        / `(ii) any portion of the qualified investment
                        of which is certified by the Secretary under
                        subsection (d) as eligible for a credit under
                        this section./

                  / `(B) EXCEPTION- Such term shall not include any
                  portion of a project for the production of any
                  property which is used in the refining or blending of
                  any transportation fuel (other than renewable fuels)./

            / `(2) ELIGIBLE PROPERTY- The term `eligible property' means
            any property which is part of a qualifying advanced energy
            project and is necessary for the production of property
            described in paragraph (1)(A)(i)./

      / `(d) Qualifying Advanced Energy Project Program- /

            / `(1) ESTABLISHMENT- /

                  / `(A) IN GENERAL- Not later than 180 days after the
                  date of enactment of this section, the Secretary, in
                  consultation with the Secretary of Energy, shall
                  establish a qualifying advanced energy project program
                  to consider and award certifications for qualified
                  investments eligible for credits under this section to
                  qualifying advanced energy project sponsors./

                  / `(B) LIMITATION- The total amount of credits that
                  may be allocated under the program shall not exceed
                  $2,000,000,000./

            / `(2) CERTIFICATION- /

                  / `(A) APPLICATION PERIOD- Each applicant for
                  certification under this paragraph shall submit an
                  application containing such information as the
                  Secretary may require during the 3-year period
                  beginning on the date the Secretary establishes the
                  program under paragraph (1)./

                  / `(B) TIME TO MEET CRITERIA FOR CERTIFICATION- Each
                  applicant for certification shall have 2 years from
                  the date of acceptance by the Secretary of the
                  application during which to provide to the Secretary
                  evidence that the requirements of the certification
                  have been met./

                  / `(C) PERIOD OF ISSUANCE- An applicant which receives
                  a certification shall have 5 years from the date of
                  issuance of the certification in order to place the
                  project in service and if such project is not placed
                  in service by that time period then the certification
                  shall no longer be valid./

            / `(3) SELECTION CRITERIA- In determining which qualifying
            advanced energy projects to certify under this section, the
            Secretary--/

                  / `(A) shall take into consideration only those
                  projects where there is a reasonable expectation of
                  commercial viability, and/

                  / `(B) shall take into consideration which projects--/

                        / `(i) will provide the greatest domestic job
                        creation (both direct and indirect) during the
                        credit period,/

                        / `(ii) will provide the greatest net impact in
                        avoiding or reducing air pollutants or
                        anthropogenic emissions of greenhouse gases,/

                        / `(iii) have the greatest readiness for
                        commercial employment, replication, and further
                        commercial use in the United States,/

                        / `(iv) will provide the greatest benefit in
                        terms of newness in the commercial market,/

                        / `(v) have the lowest levelized cost of
                        generated or stored energy, or of measured
                        reduction in energy consumption or greenhouse
                        gas emission (based on costs of the full supply
                        chain), and/

                        / `(vi) have the shortest project time from
                        certification to completion./

            / `(4) REVIEW AND REDISTRIBUTION- /

                  / `(A) REVIEW- Not later than 6 years after the date
                  of enactment of this section, the Secretary shall
                  review the credits allocated under this section as of
                  the date which is 6 years after the date of enactment
                  of this section./

                  / `(B) REDISTRIBUTION- The Secretary may reallocate
                  credits awarded under this section if the Secretary
                  determines that--/

                        / `(i) there is an insufficient quantity of
                        qualifying applications for certification
                        pending at the time of the review, or/

                        / `(ii) any certification made pursuant to
                        paragraph (2) has been revoked pursuant to
                        paragraph (2)(B) because the project subject to
                        the certification has been delayed as a result
                        of third party opposition or litigation to the
                        proposed project./

                  / `(C) REALLOCATION- If the Secretary determines that
                  credits under this section are available for
                  reallocation pursuant to the requirements set forth in
                  paragraph (2), the Secretary is authorized to conduct
                  an additional program for applications for certification./

            / `(5) DISCLOSURE OF ALLOCATIONS- The Secretary shall, upon
            making a certification under this subsection, publicly
            disclose the identity of the applicant and the amount of the
            credit with respect to such applicant./

      / `(e) Denial of Double Benefit- A credit shall not be allowed
      under this section for any qualified investment for which a credit
      is allowed under section 48, 48A, or 48B.'./

      / (c) Conforming Amendments- /

            / (1) Section 49(a)(1)(C) 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 after
            clause (iv) the following new clause:/

                        / `(v) the basis of any property which is part
                        of a qualifying advanced energy project under
                        section 48C.'./

            / (2) The table of sections for subpart E of part IV of
            subchapter A of chapter 1 is amended by inserting after the
            item relating to section 48B the following new item:/

            /`48C. Qualifying advanced energy project credit.'./

      / (d) Effective Date- The amendments made by this section shall
      apply to periods after the date of the enactment of this Act,
      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)./


      /SEC. 1303. INCENTIVES FOR MANUFACTURING FACILITIES PRODUCING
      PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES AND COMPONENTS./

      / (a) Deduction for Manufacturing Facilities- Part VI of
      subchapter B of chapter 1 (relating to itemized deductions for
      individuals and corporations) is amended by inserting after
      section 179E the following new section:/


      /`SEC. 179F. ELECTION TO EXPENSE MANUFACTURING FACILITIES
      PRODUCING PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES AND COMPONENTS./

      / `(a) Treatment as Expenses- A taxpayer may elect to treat the
      applicable percentage of the cost of any qualified plug-in
      electric drive motor vehicle manufacturing facility property as an
      expense which is not chargeable to a capital account. Any cost so
      treated shall be allowed as a deduction for the taxable year in
      which the qualified manufacturing facility property is placed in
      service./

      / `(b) Applicable Percentage- For purposes of subsection (a), the
      applicable percentage is--/

            / `(1) 100 percent, in the case of qualified plug-in
            electric drive motor vehicle manufacturing facility property
            which is placed in service before January 1, 2012, and/

            / `(2) 50 percent, in the case of qualified plug-in electric
            drive motor vehicle manufacturing facility property which is
            placed in service after December 31, 2011, and before
            January 1, 2015./

      / `(c) Election- /

            / `(1) IN GENERAL- An election under this section for any
            taxable year shall be made on the taxpayer's return of the
            tax imposed by this chapter for the taxable year. Such
            election shall be made in such manner as the Secretary may
            by regulations prescribe./

            / `(2) ELECTION IRREVOCABLE- Any election made under this
            section may not be revoked except with the consent of the
            Secretary./

      / `(d) Qualified Plug-In Electric Drive Motor Vehicle
      Manufacturing Facility Property- For purposes of this section--/

            / `(1) IN GENERAL- The term `qualified plug-in electric
            drive motor vehicle manufacturing facility property' means
            any qualified property--/

                  / `(A) the original use of which commences with the
                  taxpayer,/

                  / `(B) which is placed in service by the taxpayer
                  after the date of the enactment of this section and
                  before January 1, 2015, and/

                  / `(C) no written binding contract for the
                  construction of which was in effect on or before the
                  date of the enactment of this section./

            / `(2) QUALIFIED PROPERTY- /

                  / `(A) IN GENERAL- The term `qualified property' means
                  any property which is a facility or a portion of a
                  facility used for the production of--/

                        / `(i) any new qualified plug-in electric drive
                        motor vehicle (as defined by section 30D(c)), or/

                        / `(ii) any eligible component./

                  / `(B) ELIGIBLE COMPONENT- The term `eligible
                  component' means any battery, any electric motor or
                  generator, or any power control unit which is designed
                  specifically for use with a new qualified plug-in
                  electric drive motor vehicle (as so defined)./

      / `(e) Special Rule for Dual Use Property- In the case of any
      qualified plug-in electric drive motor vehicle manufacturing
      facility property which is used to produce both qualified property
      and other property which is not qualified property, the amount of
      costs taken into account under subsection (a) shall be reduced by
      an amount equal to--/

            / `(1) the total amount of such costs (determined before the
            application of this subsection), multiplied by/

            / `(2) the percentage of property expected to be produced
            which is not qualified property./

      / `(f) Election To Receive Loan in Lieu of Deduction- /

            / `(1) IN GENERAL- If a taxpayer elects to have this
            subsection apply for any taxable year--/

                  / `(A) subsection (a) shall not apply to any qualified
                  plug-in electric drive motor vehicle manufacturing
                  facility property placed in service by the taxpayer,/

                  / `(B) such taxpayer shall receive a loan from the
                  Secretary in an amount and under such terms as
                  provided in section 1303(b) of the American Recovery
                  and Reinvestment Tax Act of 2009, and/

                  / `(C) in the taxable year in which such qualified
                  loan is repaid, each of the limitations described in
                  paragraph (2) shall be increased by the qualified
                  plug-in electric drive motor vehicle manufacturing
                  facility amount which is--/

                        / `(i) determined under paragraph (3), and/

                        / `(ii) allocated to such limitation under
                        paragraph (4)./

            / `(2) LIMITATIONS TO BE INCREASED- The limitations
            described in this paragraph are--/

                  / `(A) the limitation imposed by section 38(c), and/

                  / `(B) the limitation imposed by section 53(c)./

            / `(3) QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE
            MANUFACTURING FACILITY AMOUNT- For purposes of this paragraph--/

                  / `(A) IN GENERAL- The qualified plug-in electric
                  drive motor vehicle manufacturing facility amount is
                  an amount equal to the applicable percentage of any
                  qualified plug-in electric drive motor vehicle
                  manufacturing facility which is placed in service
                  during the taxable year./

                  / `(B) APPLICABLE PERCENTAGE- For purposes of
                  subparagraph (A), the applicable percentage is--/

                        / `(i) 35 percent, in the case of qualified
                        plug-in electric drive motor vehicle
                        manufacturing facility property which is placed
                        in service before January 1, 2012, and/

                        / `(ii) 17.5 percent, in the case of qualified
                        plug-in electric drive motor vehicle
                        manufacturing facility property which is placed
                        in service after December 31, 2011, and before
                        January 1, 2015./

                  / `(C) SPECIAL RULE FOR DUAL USE PROPERTY- In the case
                  of any qualified plug-in electric drive motor vehicle
                  manufacturing facility property which is used to
                  produce both qualified property and other property
                  which is not qualified property, the amount of costs
                  taken into account under subparagraph (A) shall be
                  reduced by an amount equal to--/

                        / `(i) the total amount of such costs
                        (determined before the application of this
                        subparagraph), multiplied by/

                        / `(ii) the percentage of property expected to
                        be produced which is not qualified property./

            / `(4) ALLOCATION OF QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
            VEHICLE MANUFACTURING FACILITY AMOUNT- The taxpayer shall,
            at such time and in such manner as the Secretary may
            prescribe, specify the portion (if any) of the qualified
            plug-in electric drive motor vehicle manufacturing facility
            amount for the taxable year which is to be allocated to each
            of the limitations described in paragraph (2) for such
            taxable year./

            / `(5) ELECTION- /

                  / `(A) IN GENERAL- An election under this subsection
                  for any taxable year shall be made on the taxpayer's
                  return of the tax imposed by this chapter for the
                  taxable year. Such election shall be made in such
                  manner as the Secretary may by regulations prescribe./

                  / `(B) ELECTION IRREVOCABLE- Any election made under
                  this subsection may not be revoked except with the
                  consent of the Secretary.'./

      / (b) Loan Program- /

            / (1) IN GENERAL- The Secretary of the Treasury (or the
            Secretary's delegate) shall provide a loan to any person who
            is allowed a deduction under section 179F of the Internal
            Revenue Code and who makes an election under section 179F(f)
            of such Code in an amount equal to the qualified plug-in
            electric drive motor vehicle manufacturing facility amount
            (as defined in such section 179F(f))./

            / (2) TERM- Such loan shall be in the form of a senior note
            issued by the taxpayer to the Secretary of the Treasury,
            secured by the qualified plug-in electric drive motor
            vehicle manufacturing facility property (as defined in
            section 179F of the Internal Revenue Code of 1986) of the
            taxpayer, and having a term of 20 years and interest payable
            at the applicable Federal rate (as determined under section
            1274(d) of the Internal Revenue Code of 1986)./

            / (3) APPROPRIATIONS- There is hereby appropriated to the
            Secretary of the Treasury such sums as may be necessary to
            carry out this subsection./

      / (c) Clerical Amendment- The table of sections for part VI of
      subchapter B of chapter 1 is amended by adding at the end the
      following new item:/

            /`Sec. 179F. Election to expense manufacturing facilities
            producing plug-in electric drive motor vehicle and
            components.'./

      / (d) Effective Date- The amendments made by this section shall
      apply to taxable years beginning after the date of the enactment
      of this Act./


        /Subtitle E--Economic Recovery Tools/


      /SEC. 1401. 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--/

                  / `(A) by allocating 1 percent of each such limitation
                  to each State, and/

                  / `(B) by allocating the remainder of each such
                  limitation among the States in the proportion that
                  each 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 $5,000,000,000./

                  / `(B) RECOVERY ZONE FACILITY BONDS- There is a
                  national recovery zone facility bond limitation of
                  $10,000,000,000./

      / `(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, rate of 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 6431, and/

            / `(2) subsection (b) of such section shall be applied by
            substituting `40 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 build
            America 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. 1402. 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,/

                  / `(B) the Indian tribal government issuing such bond
                  and any instrumentality of such Indian tribal
                  government shall be treated as a State for purposes of
                  section 141, and/

                  / `(C) 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 would be exempt
                        from tax under section 103 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 study 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./


      /SEC. 1403. MODIFICATIONS TO NEW MARKETS TAX CREDIT./

      / (a) Increase in National Limitation- /

            / (1) IN GENERAL- Section 45D(f)(1) is amended--/

                  / (A) by striking `and' at the end of subparagraph (C),/

                  / (B) by striking `, 2007, 2008, and 2009.' in
                  subparagraph (D), and inserting `and 2007,', and/

                  / (C) by adding at the end the following new
                  subparagraphs:/

                  / `(E) $5,000,000,000 for 2008, and/

                  / `(F) $5,000,000,000 for 2009.'./

            / (2) SPECIAL RULE FOR ALLOCATION OF INCREASED 2008
            LIMITATION- The amount of the increase in the new markets
            tax credit limitation for calendar year 2008 by reason of
            the amendments made by subsection (a) shall be allocated in
            accordance with section 45D(f)(2) of the Internal Revenue
            Code of 1986 to qualified community development entities (as
            defined in section 45D(c) of such Code) which--/

                  / (A) submitted an allocation application with respect
                  to calendar year 2008, and/

                  / (B)(i) did not receive an allocation for such
                  calendar year, or/

                  / (ii) received an allocation for such calendar year
                  in an amount less than the amount requested in the
                  allocation application./

      / (b) Alternative Minimum Tax Relief- /

            / (1) IN GENERAL- Section 38(c)(4)(B) is amended by
            redesignating clauses (v) through (viii) as clauses (vi)
            through (ix), respectively, and by inserting after clause
            (iv) the following new clause:/

                        / `(v) the credit determined under section 45D
                        to the extent that such credit is attributable
                        to a qualified equity investment which is
                        designated as such under section 45D(b)(1)(C)
                        pursuant to an allocation of the new markets tax
                        credit limitation for calendar year 2009,'./

            / (2) EFFECTIVE DATE- The amendments made by this subsection
            shall apply to credits determined under section 45D of the
            Internal Revenue Code of 1986 in taxable years ending after
            the date of the enactment of this Act, and to carrybacks of
            such credits./


        /Subtitle F--Infrastructure Financing Tools/


    //PART I--IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS//


      /SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT
      INTEREST EXPENSE OF 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 which is
                              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 1 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 amendment 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 During 2009 and 2010- 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./


      /SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY BONDS./

      / (a) In General- Paragraph (1) of section 142(i) is amended by
      striking `operate at speeds in excess of' and inserting `be
      capable of attaining a maximum speed in excess of'./

      / (b) Effective Date- The amendment made by this section shall
      apply to bonds issued after the date of the enactment of this Act./


    //PART II--DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT
    CONTRACTORS//


      /SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT
      CONTRACTORS./

      / Subsection (b) of section 511 of the Tax Increase Prevention and
      Reconciliation Act of 2005 is amended by striking `December 31,
      2010' and inserting `December 31, 2011'./


    //PART III--TAX CREDIT BONDS FOR SCHOOLS//


      /SEC. 1521. 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 limitation amount allocated under subsection (d)
      for such calendar year to such issuer./

      / `(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) $5,000,000,000 for 2009,/

            / `(2) $5,000,000,000 for 2010, and/

            / `(3) except as provided in subsection (e), zero after 2010./

      / `(d) Limitation Allocated Among States- /

            / `(1) IN GENERAL- 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 amount allocated to such State under this
                  subsection 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) MINIMUM PERCENTAGE- A State's minimum
                  percentage for any calendar year is equal to the
                  product of--/

                        / `(i) the quotient of--/

                              / `(I) the amount the State is eligible to
                              receive under section 1124(d) of the
                              Elementary and Secondary Education Act of
                              1965 (20 U.S.C. 6333(d)) for the most
                              recent fiscal year ending before such
                              calendar year, divided by/

                              / `(II) the amount all States are eligible
                              to receive under section 1124 of such Act
                              (20 U.S.C. 6333) for such fiscal year,
                              multiplied by/

                        / `(ii) 100./

            / `(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) 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).'./

      / (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 the date of the enactment of
      this Act./


      /SEC. 1522. 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 IV--BUILD AMERICA BONDS//


      /SEC. 1531. BUILD AMERICA 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--Build America Bonds//

            /`Sec. 54AA. Build America bonds./


      /`SEC. 54AA. BUILD AMERICA BONDS./

      / `(a) In General- If a taxpayer holds a build America 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
      build America bond is 35 percent of the amount of interest payable
      by the issuer with respect to such date (40 percent in the case of
      an issuer described in section 148(f)(4)(D) (determined without
      regard to clauses (v), (vi), and (vii) thereof and by substituting
      `$30,000,000' for `$5,000,000' each place it appears therein)./

      / `(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) Build America Bond- /

            / `(1) IN GENERAL- For purposes of this section, the term
            `build America 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,/

                  / `(B) such obligation is issued before January 1,
                  2011, and/

                  / `(C) the issuer makes an irrevocable election to
                  have this section apply./

            / `(2) APPLICABLE RULES- For purposes of applying paragraph
            (1)--/

                  / `(A) for purposes of section 149(b), a build America
                  bond shall not be treated as federally guaranteed by
                  reason of the credit allowed under subsection (a) or
                  section 6431,/

                  / `(B) for purposes of section 148, the yield on a
                  build America bond shall be determined without regard
                  to the credit allowed under subsection (a), and/

                  / `(C) a bond shall not be treated as a build America
                  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 build America bond is entitled to a payment of
      interest under such bond./

      / `(f) Special Rules- /

            / `(1) INTEREST ON BUILD AMERICA BONDS INCLUDIBLE IN GROSS
            INCOME FOR FEDERAL INCOME TAX PURPOSES- For purposes of this
            title, interest on any build America 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 6431./

            / `(2) QUALIFIED BOND- For purposes of this subsection, the
            term `qualified bond' means any build America 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 6431.'./

      / (b) Credit for Qualified Bonds Issued Before 2011- Subchapter B
      of chapter 65 is amended by adding at the end the following new
      section:/


      /`SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER./

      / `(a) In General- In the case of a qualified bond issued before
      January 1, 2011, the issuer of such bond shall be allowed a credit
      with respect to each interest 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 (40 percent in the
      case of an issuer described in section 148(f)(4)(D) (determined
      without regard to clauses (v), (vi), and (vii) thereof and by
      substituting `$30,000,000' for `$5,000,000' each place it appears
      therein)./

      / `(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(g).'./

      / (c) Conforming Amendments- /

            / (1) Section 1324(b)(2) of title 31, United States Code, is
            amended by striking `or 6428' and inserting `6428, or 6431,'./

            / (2) Section 54A(c)(1)(B) is amended by 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. Build America bonds.'./

            / (6) The table of section for subchapter B of chapter 65 is
            amended by adding at the end the following new item:/

            /`Sec. 6431. Credit for qualified bonds allowed to issuer.'./

      / (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 build America 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./


        /Subtitle G--Economic Recovery Payments to Certain Individuals/


      /SEC. 1601. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS OF SOCIAL
      SECURITY, SUPPLEMENTAL SECURITY INCOME, RAILROAD RETIREMENT
      BENEFITS, AND VETERANS DISABILITY COMPENSATION OR PENSION BENEFITS./

      / (a) Authority to Make Payments- /

            / (1) ELIGIBILITY- /

                  / (A) IN GENERAL- Subject to paragraph (5)(B), the
                  Secretary of the Treasury shall make a $300 payment to
                  each individual who, for any month during the 3-month
                  period ending with the month which ends prior to the
                  month that includes the date of the enactment of this
                  Act, is entitled to a benefit payment described in
                  clause (i), (ii), or (iii) of subparagraph (B) or is
                  eligible for a SSI cash benefit described in
                  subparagraph (C)./

                  / (B) BENEFIT PAYMENT DESCRIBED- For purposes of
                  subparagraph (A):/

                        / (i) TITLE II BENEFIT- A benefit payment
                        described in this clause is a monthly insurance
                        benefit payable (without regard to sections
                        202(j)(1) and 223(b) of the Social Security Act
                        (42 U.S.C. 402(j)(1), 423(b)) under--/

                              / (I) section 202(a) of such Act (42
                              U.S.C. 402(a));/

                              / (II) section 202(b) of such Act (42
                              U.S.C. 402(b));/

                              / (III) section 202(c) of such Act (42
                              U.S.C. 402(c));/

                              / (IV) section 202(d)(1)(B)(ii) of such
                              Act (42 U.S.C. 402(d)(1)(B)(ii));/

                              / (V) section 202(e) of such Act (42
                              U.S.C. 402(e));/

                              / (VI) section 202(f) of such Act (42
                              U.S.C. 402(f));/

                              / (VII) section 202(g) of such Act (42
                              U.S.C. 402(g));/

                              / (VIII) section 202(h) of such Act (42
                              U.S.C. 402(h));/

                              / (IX) section 223(a) of such Act (42
                              U.S.C. 423(a));/

                              / (X) section 227 of such Act (42 U.S.C.
                              427); or/

                              / (XI) section 228 of such Act (42 U.S.C.
                              428)./

                        / (ii) RAILROAD RETIREMENT BENEFIT- A benefit
                        payment described in this clause is a monthly
                        annuity or pension payment payable (without
                        regard to section 5(a)(ii) of the Railroad
                        Retirement Act of 1974 (45 U.S.C. 231d(a)(ii))
                        under--/

                              / (I) section 2(a)(1) of such Act (45
                              U.S.C. 231a(a)(1));/

                              / (II) section 2(c) of such Act (45 U.S.C.
                              231a(c));/

                              / (III) section 2(d)(1)(i) of such Act (45
                              U.S.C. 231a(d)(1)(i));/

                              / (IV) section 2(d)(1)(ii) of such Act (45
                              U.S.C. 231a(d)(1)(ii));/

                              / (V) section 2(d)(1)(iii)(C) of such Act
                              to an adult disabled child (45 U.S.C.
                              231a(d)(1)(iii)(C));/

                              / (VI) section 2(d)(1)(iv) of such Act (45
                              U.S.C. 231a(d)(1)(iv));/

                              / (VII) section 2(d)(1)(v) of such Act (45
                              U.S.C. 231a(d)(1)(v)); or/

                              / (VIII) section 7(b)(2) of such Act (45
                              U.S.C. 231f(b)(2)) with respect to any of
                              the benefit payments described in clause
                              (i) of this subparagraph./

                        / (iii) VETERANS BENEFIT- A benefit payment
                        described in this clause is a compensation or
                        pension payment payable under--/

                              / (I) section 1110, 1117, 1121, 1131,
                              1141, or 1151 of title 38, United States
                              Code;/

                              / (II) section 1310, 1312, 1313, 1315,
                              1316, or 1318 of title 38, United States
                              Code;/

                              / (III) section 1513, 1521, 1533, 1536,
                              1537, 1541, 1542, or 1562 of title 38,
                              United States Code; or/

                              / (IV) section 1805, 1815, or 1821 of
                              title 38, United States Code,/

                        /to a veteran, surviving spouse, child, or
                        parent as described in paragraph (2), (3),
                        (4)(A)(ii), or (5) of section 101, title 38,
                        United States Code, who received that benefit
                        during any month within the 3 month period
                        ending with the month which ends prior to the
                        month that includes the date of the enactment of
                        this Act./

                  / (C) SSI CASH BENEFIT DESCRIBED- A SSI cash benefit
                  described in this subparagraph is a cash benefit
                  payable under section 1611 (other than under
                  subsection (e)(1)(B) of such section) or 1619(a) of
                  the Social Security Act (42 U.S.C. 1382, 1382h)./

            / (2) REQUIREMENT- A payment shall be made under paragraph
            (1) only to individuals who reside in 1 of the 50 States,
            the District of Columbia, Puerto Rico, Guam, the United
            States Virgin Islands, American Samoa, or the Northern
            Mariana Islands. For purposes of the preceding sentence, the
            determination of the individual's residence shall be based
            on the current address of record under a program specified
            in paragraph (1)./

            / (3) NO DOUBLE PAYMENTS- An individual shall be paid only 1
            payment under this section, regardless of whether the
            individual is entitled to, or eligible for, more than 1
            benefit or cash payment described in paragraph (1)./

            / (4) LIMITATION- A payment under this section shall not be
            made--/

                  / (A) in the case of an individual entitled to a
                  benefit specified in paragraph (1)(B)(i) or paragraph
                  (1)(B)(ii)(VIII) if, for the most recent month of such
                  individual's entitlement in the 3-month period
                  described in paragraph (1), such individual's benefit
                  under such paragraph was not payable by reason of
                  subsection (x) or (y) of section 202 the Social
                  Security Act (42 U.S.C. 402) or section 1129A of such
                  Act (42 U.S.C. 1320a-8a);/

                  / (B) in the case of an individual entitled to a
                  benefit specified in paragraph (1)(B)(iii) if, for the
                  most recent month of such individual's entitlement in
                  the 3 month period described in paragraph (1), such
                  individual's benefit under such paragraph was not
                  payable, or was reduced, by reason of section 1505,
                  5313, or 5313B of title 38, United States Code;/

                  / (C) in the case of an individual entitled to a
                  benefit specified in paragraph (1)(C) if, for such
                  most recent month, such individual's benefit under
                  such paragraph was not payable by reason of subsection
                  (e)(1)(A) or (e)(4) of section 1611 (42 U.S.C. 1382)
                  or section 1129A of such Act (42 U.S.C. 1320a-8a); or/

                  / (D) in the case of any individual whose date of
                  death occurs before the date on which the individual
                  is certified under subsection (b) to receive a payment
                  under this section./

            / (5) TIMING AND MANNER OF PAYMENTS- /

                  / (A) IN GENERAL- The Secretary of the Treasury shall
                  commence making payments under this section at the
                  earliest practicable date but in no event later than
                  120 days after the date of enactment of this Act. The
                  Secretary of the Treasury may make any payment
                  electronically to an individual in such manner as if
                  such payment was a benefit payment or cash benefit to
                  such individual under the applicable program described
                  in subparagraph (B) or (C) of paragraph (1)./

                  / (B) DEADLINE- No payments shall be made under this
                  section after December 31, 2010, regardless of any
                  determinations of entitlement to, or eligibility for,
                  such payments made after such date./

      / (b) Identification of Recipients- The Commissioner of Social
      Security, the Railroad Retirement Board, and the Secretary of
      Veterans Affairs shall certify the individuals entitled to receive
      payments under this section and provide the Secretary of the
      Treasury with the information needed to disburse such payments. A
      certification of an individual shall be unaffected by any
      subsequent determination or redetermination of the individual's
      entitlement to, or eligibility for, a benefit specified in
      subparagraph (B) or (C) of subsection (a)(1)./

      / (c) Treatment of Payments- /

            / (1) PAYMENT TO BE DISREGARDED FOR PURPOSES OF ALL FEDERAL
            AND FEDERALLY ASSISTED PROGRAMS- A payment under subsection
            (a) shall not be regarded as income and shall not be
            regarded as a resource for the month of receipt and the
            following 9 months, for purposes of determining the
            eligibility of the recipient (or the recipient's spouse or
            family) 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./

            / (2) PAYMENT NOT CONSIDERED INCOME FOR PURPOSES OF
            TAXATION- A payment under subsection (a) shall not be
            considered as gross income for purposes of the Internal
            Revenue Code of 1986./

            / (3) PAYMENTS PROTECTED FROM ASSIGNMENT- The provisions of
            sections 207 and 1631(d)(1) of the Social Security Act (42
            U.S.C. 407, 1383(d)(1)), section 14(a) of the Railroad
            Retirement Act of 1974 (45 U.S.C. 231m(a)), and section 5301
            of title 38, United States Code, shall apply to any payment
            made under subsection (a) as if such payment was a benefit
            payment or cash benefit to such individual under the
            applicable program described in subparagraph (B) or (C) of
            subsection (a)(1)./

            / (4) PAYMENTS SUBJECT TO OFFSET- Notwithstanding paragraph
            (3), for purposes of section 3716 of title 31, United States
            Code, any payment made under this section shall not be
            considered a benefit payment or cash benefit made under the
            applicable program described in subparagraph (B) or (C) of
            subsection (a)(1) and all amounts paid shall be subject to
            offset to collect delinquent debts./

      / (d) Payment to Representative Payees and Fiduciaries- /

            / (1) IN GENERAL- In any case in which an individual who is
            entitled to a payment under subsection (a) and whose benefit
            payment or cash benefit described in paragraph (1) of that
            subsection is paid to a representative payee or fiduciary,
            the payment under subsection (a) shall be made to the
            individual's representative payee or fiduciary and the
            entire payment shall be used only for the benefit of the
            individual who is entitled to the payment./

            / (2) APPLICABILITY- /

                  / (A) PAYMENT ON THE BASIS OF A TITLE II OR SSI
                  BENEFIT- Section 1129(a)(3) of the Social Security Act
                  (42 U.S.C. 1320a-8(a)(3)) shall apply to any payment
                  made on the basis of an entitlement to a benefit
                  specified in paragraph (1)(B)(i) or (1)(C) of
                  subsection (a) in the same manner as such section
                  applies to a payment under title II or XVI of such Act./

                  / (B) PAYMENT ON THE BASIS OF A RAILROAD RETIREMENT
                  BENEFIT- Section 13 of the Railroad Retirement Act (45
                  U.S.C. 231l) shall apply to any payment made on the
                  basis of an entitlement to a benefit specified in
                  paragraph (1)(B)(ii) of subsection (a) in the same
                  manner as such section applies to a payment under such
                  Act./

                  / (C) PAYMENT ON THE BASIS OF A VETERANS BENEFIT-
                  Sections 5502, 6106, and 6108 of title 38, United
                  States Code, shall apply to any payment made on the
                  basis of an entitlement to a benefit specified in
                  paragraph (1)(B)(iii) of subsection (a) in the same
                  manner as those sections apply to a payment under that
                  title./

      / (e) Appropriation- Out of any sums in the Treasury of the United
      States not otherwise appropriated, the following sums are
      appropriated for the period of fiscal years 2009 and 2010 to carry
      out this section:/

            / (1) For the Secretary of the Treasury--/

                  / (A) such sums as may be necessary to make payments
                  under this section; and/

                  / (B) $57,000,000 for administrative costs incurred in
                  carrying out this section and section 36A of the
                  Internal Revenue Code of 1986 (as added by this Act)./

            / (2) For the Commissioner of Social Security, $90,000,000
            for the Social Security Administration's Limitation on
            Administrative Expenses for costs incurred in carrying out
            this section./

            / (3) For the Railroad Retirement Board, $1,000,000 for
            administrative costs incurred in carrying out this section./

            / (4) For the Secretary of Veterans Affairs, $100,000 for
            the Information Systems Technology account and $7,100,000
            for the General Operating Expenses account for
            administrative costs incurred in carrying out this section./


        /Subtitle H--Trade Adjustment Assistance/


      /SEC. 1701. TEMPORARY EXTENSION OF TRADE ADJUSTMENT ASSISTANCE
      PROGRAM./

      / (a) Assistance for Workers- /

            / (1) IN GENERAL- Section 245(a) of the Trade Act of 1974
            (19 U.S.C. 2317(a)) is amended by striking `December 31,
            2007' and inserting `December 31, 2010'./

            / (2) ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE- Section
            246(b)(1) of the Trade Act of 1974 (19 U.S.C. 2318(b)(1)) is
            amended by striking `5 years' and inserting `7 years'./

      / (b) Assistance for Firms- Section 256(b) of the Trade Act of
      1974 (19 U.S.C. 2346(b)) is amended by striking `2007, and
      $4,000,000 for the 3-month period beginning on October 1, 2007,'
      and inserting `December 31, 2010'./

      / (c) Assistance for Farmers- Section 298(a) of the Trade Act of
      1974 (19 U.S.C. 2401g(a)) is amended by striking `through 2007'
      and all that follows through the end period and inserting `through
      December 31, 2010 to carry out the purposes of this chapter.'./

      / (d) Extension of Termination Dates- Section 285 of the Trade Act
      of 1974 (19 U.S.C. 2271 note) is amended by striking `December 31,
      2007' each place it appears and inserting `December 31, 2010'./

      / (e) Sense of the Senate Regarding Adjustment Assistance for
      Communities- It is the sense of the Senate that title II of the
      Trade Act of 1974 (19 U.S.C. 2271 et seq.) should be amended to
      assist any community impacted by trade with economic adjustment
      through--/

            / (1) the coordination of efforts by State and local
            governments and economic organizations;/

            / (2) the coordination of Federal, State, and local resources;/

            / (3) the creation of community-based development
            strategies; and/

            / (4) the development and provision of training programs./

      / (f) Effective Date- The amendments made by this section shall be
      effective as of January 1, 2008./


        /Subtitle I--Prohibition on Collection of Certain Payments Made
        Under the Continued Dumping and Subsidy Offset Act of 2000/


      /SEC. 1801. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE
      UNDER THE CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000./

      / (a) In General- Notwithstanding any other provision of law,
      neither the Secretary of Homeland Security nor any other person may--/

            / (1) require repayment of, or attempt in any other way to
            recoup, any payments described in subsection (b); or/

            / (2) offset any past, current, or future distributions of
            antidumping or countervailing duties assessed with respect
            to imports from countries that are not parties to the North
            American Free Trade Agreement in an attempt to recoup any
            payments described in subsection (b)./

      / (b) Payments Described- Payments described in this subsection
      are payments of antidumping or countervailing duties made pursuant
      to the Continued Dumping and Subsidy Offset Act of 2000 (section
      754 of the Tariff Act of 1930 (19 U.S.C. 1675c; repealed by
      subtitle F of title VII of the Deficit Reduction Act of 2005
      (Public Law 109-171; 120 Stat. 154))) that were--/

            / (1) assessed and paid on imports of goods from countries
            that are parties to the North American Free Trade Agreement;
            and/

            / (2) distributed on or after January 1, 2001, and before
            January 1, 2006./

      / (c) Payment of Funds Collected or Withheld- Not later than the
      date that is 60 days after the date of the enactment of this Act,
      the Secretary of Homeland Security shall--/

            / (1) refund any repayments, or any other recoupment, of
            payments described in subsection (b); and/

            / (2) fully distribute any antidumping or countervailing
            duties that the U.S. Customs and Border Protection is
            withholding as an offset as described in subsection (a)(2)./

      / (d) Limitation- Nothing in this section shall be construed to
      prevent the Secretary of Homeland Security, or any other person,
      from requiring repayment of, or attempting to otherwise recoup,
      any payments described in subsection (b) as a result of--/

            / (1) a finding of false statements or other misconduct by a
            recipient of such a payment; or/

            / (2) the reliquidation of an entry with respect to which
            such a payment was made./


        /Subtitle J--Other Provisions/


      /SEC. 1901. 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 new 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)./


      /SEC. 1902. INCREASE IN PUBLIC DEBT LIMIT./

      / Subsection (b) of section 3101 of title 31, United States Code,
      is amended by striking out the dollar limitation contained in such
      subsection and inserting `$12,140,000,000,000'./


      /SEC. 1903. ELECTION TO ACCELERATE THE LOW-INCOME HOUSING TAX CREDIT./

      / (a) In General- At the election of the taxpayer, the credit
      determined under section 42 of the Internal Revenue Code of 1986
      for the taxpayer's first three taxable years beginning after
      December 31, 2008, in which credits are allowable for any
      non-federally subsidized low-income housing project initially
      placed in service after such date--/

            / (1) with respect to initial investments made pursuant to a
            binding agreement by such taxpayer after December 31, 2008,
            and before January 1, 2011, and/

            / (2) only from allocations of a State housing credit
            ceiling before 2011,/

      /shall be 200 percent of the amount which would (but for this
      subsection) be so allowable./

      / (b) Eligibility for Election- The election under subsection (a)
      shall take effect with respect to the first taxable year referred
      to in such subsection only when all rental requirements pursuant
      to section 42(g)(1) of the Internal Revenue Code of 1986 have been
      met with respect to such low-income housing project./

      / (c) Reduction in Aggregate Credit to Reflect Accelerated Credit-
      The aggregate credit allowable to any taxpayer under section 42 of
      the Internal Revenue Code of 1986 with respect to any investment
      for taxable years after the first three taxable years referred to
      in subsection (a) shall be reduced on a pro rata basis by the
      amount of the increased credit allowable by reason of subsection
      (a) with respect to such first three taxable years. The preceding
      sentence shall not be construed to affect whether any taxable year
      is part of the credit, compliance, or extended use periods under
      such section 42./

      / (d) Election- The election under subsection (a) shall be made at
      the time and in the manner prescribed by the Secretary of the
      Treasury or the Secretary's delegate, and, once made, shall be
      irrevocable. In the case of a partnership, such election shall be
      made by the partnership./


        /TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING
        FAMILIES/


      /SEC. 2000. SHORT TITLE; TABLE OF CONTENTS./

      / (a) Short Title- This title may be cited as the `Assistance for
      Unemployed Workers and Struggling Families Act'./

      / (b) Table of Contents- The table of contents for this title is
      as follows:/


      /TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES/

            /Sec. 2000. Short title; table of contents./


      /Subtitle A--Unemployment Insurance/

            /Sec. 2001. Extension of emergency unemployment compensation
            program./

            /Sec. 2002. Increase in unemployment compensation benefits./

            /Sec. 2003. Unemployment compensation modernization./

            /Sec. 2004. Temporary assistance for States with advances./


      /Subtitle B--Assistance for Vulnerable Individuals/

            /Sec. 2101. Emergency fund for TANF program./

            /Sec. 2102. Extension of TANF supplemental grants./

            /Sec. 2103. Clarification of authority of states to use tanf
            funds carried over from prior years to provide tanf benefits
            and services./

            /Sec. 2104. Temporary reinstatement of authority to provide
            Federal matching payments for State spending of child
            support incentive payments./


        /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
            (i)(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 (i)(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
                  (i)(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- A State that enters into an agreement under
      this section shall disregard the monthly equivalent of $25 per
      week for any individual who receives additional compensation under
      subsection (b)(1) in considering the amount of income of the
      individual for any purposes under the Medicaid program under title
      XIX of the Social Security Act and the State Children's Health
      Insurance Program under title XXI of such 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. 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 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 (and not full-time) work, 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./

            / `(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 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, 2010. In the case of a State
      in which the first day of the first regularly scheduled session of
      the State legislature beginning after the date of enactment of
      this subsection begins after December 31, 2010, the preceding
      sentence shall be applied by substituting `October 1, 2011' for
      `October 1, 2010'./

      / `(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)./


      /SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH ADVANCES./

      / Section 1202(b) of the Social Security Act (42 U.S.C. 1322(b))
      is amended by adding at the end the following new paragraph:/

      / `(10)(A) With respect to the period beginning on the date of
      enactment of this paragraph and ending on December 31, 2010--/

            / `(i) any interest payment otherwise due from a State under
            this subsection during such period shall be deemed to have
            been made by the State; and/

            / `(ii) no interest shall accrue on any advance or advances
            made under section 1201 to a State during such period./

      / `(B) The provisions of subparagraph (A) shall have no effect on
      the requirement for interest payments under this subsection after
      the period described in such subparagraph or on the accrual of
      interest under this subsection after such period.'./


        /Subtitle B--Assistance for Vulnerable Individuals/


      /SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM./

      / (a) Temporary Fund- /

            / (1) 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- /

                  / `(A) IN GENERAL- Out of any money in the Treasury of
                  the United States not otherwise appropriated, there
                  are appropriated for fiscal year 2009, $3,000,000,000
                  for payment to the Emergency Fund./

                  / `(B) AVAILABILITY AND USE OF FUNDS- The amounts
                  appropriated to the Emergency Fund under subparagraph
                  (A) shall remain available through fiscal year 2010
                  and shall be used to make grants to States in each of
                  fiscal years 2009 and 2010 in accordance with the
                  requirements of paragraph (3)./

                  / `(C) LIMITATION- In no case may the Secretary make a
                  grant from the Emergency Fund for a fiscal year after
                  fiscal year 2010./

            / `(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 DEFINED-
                  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).'./

            / (2) REPEAL- Effective October 1, 2010, subsection (c) of
            section 403 of the Social Security Act (42 U.S.C. 603) (as
            added by paragraph (1)) is repealed./

      / (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 2008, 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), except that, if a State elects such option
      for fiscal year 2008, the emergency fund base year of the State
      with respect to such caseload shall be fiscal year 2007))' before
      `under the State'./

      / (c) Disregard From Limitation on Total Payments to Territories-
      Section 1108(a)(2) of the Social Security Act (42 U.S.C.
      1308(a)(2)) is amended by inserting `403(c)(3),' after `403(a)(5),'./

      / (d) Effective Date- The amendments made by this section shall
      take effect on the date of the enactment of this Act./


      /SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS./

      / (a) Extension Through Fiscal Year 2010- Section 7101(a) of the
      Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat. 135),
      as amended by section 301(a) of the Medicare Improvements for
      Patients and Providers Act of 2008 (Public Law 110-275), is
      amended by striking `fiscal year 2009' and inserting `fiscal year
      2010'./

      / (b) Conforming Amendment- Section 403(a)(3)(H)(ii) of the Social
      Security Act (42 U.S.C. 603(a)(3)(H)(ii)) is amended to read as
      follows:/

                        / `(ii) subparagraph (G) shall be applied as if
                        `fiscal year 2010' were substituted for `fiscal
                        year 2001'; and'./


      /SEC. 2103. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF FUNDS
      CARRIED OVER FROM PRIOR YEARS TO PROVIDE TANF BENEFITS AND SERVICES./

      / Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is
      amended to read as follows:/

      / `(e) Authority to Carry Over Certain Amounts for Benefits or
      Services or for Future Contingencies- A State or tribe may use a
      grant made to the State or tribe under this part for any fiscal
      year to provide, without fiscal year limitation, any benefit or
      service that may be provided under the State or tribal program
      funded under this part.'./


      /SEC. 2104. TEMPORARY REINSTATEMENT OF AUTHORITY TO PROVIDE
      FEDERAL MATCHING PAYMENTS FOR STATE SPENDING OF CHILD SUPPORT
      INCENTIVE PAYMENTS./

      / During the period that begins on October 1, 2008, and ends on
      December 31, 2010, section 455(a)(1) of the Social Security Act
      (42 U.S.C. 655(a)(1)) shall be applied without regard to the
      amendment made by section 7309(a) of the Deficit Reduction Act of
      2005 (Public Law 109-171, 120 Stat. 147)./


        /TITLE III--HEALTH INSURANCE ASSISTANCE/


      /SEC. 3000. TABLE OF CONTENTS OF TITLE./

      / The table of contents for this title is as follows:/


      /TITLE III--HEALTH INSURANCE ASSISTANCE/

            /Sec. 3000. Table of contents of title./


      /Subtitle A--Premium Subsidies for COBRA Continuation Coverage for
      Unemployed Workers/

            /Sec. 3001. Premium assistance for COBRA benefits./


      /Subtitle B--Transitional Medical Assistance (TMA)/

            /Sec. 3101. Extension of transitional medical assistance (TMA)./


      /Subtitle C--Extension of the Qualified Individual (QI) Program/

            /Sec. 3201. Extension of the qualifying individual (QI)
            program./


      /Subtitle D--Other Provisions/

            /Sec. 3301. Premiums and cost sharing protections under
            Medicaid, eligibility determinations under Medicaid and
            CHIP, and protection of certain Indian property from
            Medicaid estate recovery./

            /Sec. 3302. Rules applicable under Medicaid and CHIP to
            managed care entities with respect to Indian enrollees and
            Indian health care providers and Indian managed care entities./

            /Sec. 3303. Consultation on Medicaid, CHIP, and other health
            care programs funded under the Social Security Act involving
            Indian Health Programs and Urban Indian Organizations./

            /Sec. 3304. Application of prompt pay requirements to
            nursing facilities./

            /Sec. 3305. Period of application; sunset./


        /Subtitle A--Premium Subsidies for COBRA Continuation Coverage
        for Unemployed Workers/


      /SEC. 3001. PREMIUM ASSISTANCE FOR COBRA BENEFITS./

      / (a) Table of Contents of Subtitle- The table of contents of this
      subtitle is as follows:/

            /Sec. 3001. Premium assistance for COBRA benefits./

      / (b) Premium Assistance for COBRA Continuation Coverage for
      Unemployed Workers and Their Families- /

            / (1) PROVISION OF PREMIUM ASSISTANCE- /

                  / (A) REDUCTION OF PREMIUMS PAYABLE- In the case of
                  any premium for a month of coverage beginning after
                  the date of the enactment of the 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 50 percent of the amount of such
                  premium (as determined without regard to this
                  subsection)./

                  / (B) PLAN ENROLLMENT OPTION- /

                        / (i) IN GENERAL- Notwithstanding the COBRA
                        continuation provisions, an assistance eligible
                        individual may, not later than 90 days after the
                        date of notice of the plan enrollment option
                        described in this subparagraph, elect to enroll
                        in coverage under a plan offered by the employer
                        involved, or the employee organization involved
                        (including, for this purpose, a joint board of
                        trustees of a multiemployer trust affiliated
                        with one or more multiemployer plans), that is
                        different than coverage under the plan in which
                        such individual was enrolled at the time the
                        qualifying event occurred, and such coverage
                        shall be treated as COBRA continuation coverage
                        for purposes of the applicable COBRA
                        continuation coverage provision./

                        / (ii) REQUIREMENTS- An assistance eligible
                        individual may elect to enroll in different
                        coverage as described in clause (i) only if--/

                              / (I) the employer involved has made a
                              determination that such employer will
                              permit assistance eligible individuals to
                              enroll in different coverage as provided
                              for this subparagraph;/

                              / (II) the premium for such different
                              coverage does not exceed the premium for
                              coverage in which the individual was
                              enrolled at the time the qualifying event
                              occurred;/

                              / (III) the different coverage in which
                              the individual elects to enroll is
                              coverage that is also offered to the
                              active employees of the employer at the
                              time at which such election is made; and/

                              / (IV) the different coverage is not--/

/ (aa) coverage that provides only dental, vision, counseling, or
referral services (or a combination of such services);/

/ (bb) a health flexible spending account or health reimbursement
arrangement; or/

/ (cc) coverage that provides coverage for services or treatments
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 of such care)./

                  / (C) PREMIUM REIMBURSEMENT- For provisions providing
                  the balance of such premium, see section 6432 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 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--/

                              / (I) the availability of premium
                              reduction with respect to such coverage
                              under this subsection; and/

                              / (II) the option to enroll in different
                              coverage if an employer that permits
                              assistance eligible individuals to elect
                              enrollment in different coverage (as
                              described in paragraph (1)(B))./

                        / (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,/

                        / (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; and/

                        / (vi) a description of the option of the
                        qualified beneficiary to enroll in different
                        coverage if the employer permits such
                        beneficiary to elect to enroll in such different
                        coverage under paragraph (1)(B)./

                  / (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 person) 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. 6432. COBRA PREMIUM ASSISTANCE./

      / `(a) In General- The person 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
      3001(b) of the American Recovery and Reinvestment Act of 2009.
      Such amount shall be treated as a credit against the requirement
      of such person to make deposits of payroll taxes and the liability
      of such person for payroll taxes. To the extent that such amount
      exceeds the amount of such taxes, the Secretary shall pay to such
      person the amount of such excess. No payment may be made under
      this subsection to a person with respect to any assistance
      eligible individual until after such person has received the
      reduced premium from such individual required under section
      3001(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 subsection
      shall be treated in the same manner as a refund of the credit
      under section 35./

      / `(e) Reporting- /

            / `(1) IN GENERAL- Each person 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, and the
      application of this section to group health plans which are
      multiemployer plans.'./

                  / (B) SOCIAL SECURITY TRUST FUNDS HELD HARMLESS- In
                  determining any amount transferred or appropriated to
                  any fund under the Social Security Act, section 6432
                  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. 6432. COBRA premium assistance.'./

                  / (D) EFFECTIVE DATE- The amendments made by this
                  paragraph shall apply to premiums to which subsection
                  (a)(1)(A) applies./

                  / (E) SPECIAL RULE- /

                        / (i) IN GENERAL- In the case of an assistance
                        eligible individual who pays the full premium
                        amount required for COBRA continuation coverage
                        for any month during the 60-day period beginning
                        on the first day of the first month after the
                        date of enactment of this Act, the person to
                        whom such payment is made shall--/

                              / (I) make a reimbursement payment to such
                              individual for the amount of such premium
                              paid in excess of the amount required to
                              be paid under subsection (b)(1)(A); or/

                              / (II) provide credit to the individual
                              for such amount in a manner that reduces
                              one or more subsequent premium payments
                              that the individual is required to pay
                              under such subsection for the coverage
                              involved./

                        / (ii) REIMBURSING EMPLOYER- A person to which
                        clause (i) applies shall be reimbursed as
                        provided for in section 6432 of the Internal
                        Revenue Code of 1986 for any payment made, or
                        credit provided, to the employee under such clause./

                        / (iii) PAYMENT OR CREDITS- Unless it is
                        reasonable to believe that the credit for the
                        excess payment in clause (i)(II) will be used by
                        the assistance eligible individual within 180
                        days of the date on which the person receives
                        from the individual the payment of the full
                        premium amount, a person to which clause (i)
                        applies shall make the payment required under
                        such clause to the individual within 60 days of
                        such payment of the full premium amount. If, as
                        of any day within the 180-day period, it is no
                        longer reasonable to believe that the credit
                        will be used during that period, payment equal
                        to the remainder of the credit outstanding shall
                        be made to the individual within 60 days of such
                        day./

            / (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 3001(a)(2)(C) of the American Recovery and
      Reinvestment 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
            3001(a) of the American Recovery and Reinvestment 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 3001 of the American Recovery and Reinvestment 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./


        /Subtitle B--Transitional Medical Assistance (TMA)/


      /SEC. 3101. EXTENSION OF TRANSITIONAL MEDICAL 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./


        /Subtitle C--Extension of the Qualified Individual (QI) Program/


      /SEC. 3201. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM./

      / (a) Extension- Section 1902(a)(10)(E)(iv) of the Social Security
      Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking
      `December 2009' and inserting `December 2010'./

      / (b) Extending Total Amount Available for Allocation- Section
      1933(g) of such Act (42 U.S.C. 1396u-3(g)) is amended--/

            / (1) in paragraph (2)--/

                  / (A) by striking `and' at the end of subparagraph (K);/

                  / (B) in subparagraph (L), by striking the period at
                  the end and inserting a semicolon; and/

                  / (C) by adding at the end the following new
                  subparagraphs:/

                  / `(M) for the period that begins on January 1, 2010,
                  and ends on September 30, 2010, the total allocation
                  amount is $412,500,000; and/

                  / `(N) for the period that begins on October 1, 2010,
                  and ends on December 31, 2010, the total allocation
                  amount is $150,000,000.'; and/

            / (2) in paragraph (3), in the matter preceding subparagraph
            (A), by striking `or (L)' and inserting `(L), or (N)'./


        /Subtitle D--Other Provisions/


      /SEC. 3301. PREMIUMS AND COST SHARING PROTECTIONS UNDER MEDICAID,
      ELIGIBILITY DETERMINATIONS UNDER MEDICAID AND CHIP, AND PROTECTION
      OF CERTAIN INDIAN PROPERTY FROM MEDICAID ESTATE RECOVERY./

      / (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.'./

      / (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) is amended by adding at the end the following
            new subsection:/

      / `(dd) 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--/

                  / (A) by redesignating subparagraphs (B) through (E),
                  as subparagraphs (C) through (F), respectively; and/

                  / (B) by inserting after subparagraph (A), the
                  following new subparagraph:/

                  / `(B) Section 1902(dd) (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. 3302. RULES APPLICABLE UNDER MEDICAID AND CHIP TO MANAGED
      CARE ENTITIES WITH RESPECT TO INDIAN ENROLLEES AND INDIAN HEALTH
      CARE PROVIDERS AND INDIAN MANAGED CARE ENTITIES./

      / (a) In General- Section 1932 of the Social Security Act (42
      U.S.C. 1396u-2) is amended by adding at the end the following new
      subsection:/

      / `(h) Special Rules With Respect to Indian Enrollees, Indian
      Health Care Providers, and Indian Managed Care Entities- /

            / `(1) ENROLLEE OPTION TO SELECT AN INDIAN HEALTH CARE
            PROVIDER AS PRIMARY CARE PROVIDER- In the case of a
            non-Indian Medicaid managed care entity that--/

                  / `(A) has an Indian enrolled with the entity; and/

                  / `(B) has an Indian health care provider that is
                  participating as a primary care provider within the
                  network of the entity,/

            /insofar as the Indian is otherwise eligible to receive
            services from such Indian health care provider and the
            Indian health care provider has the capacity to provide
            primary care services to such Indian, the contract with the
            entity under section 1903(m) or under section 1905(t)(3)
            shall require, as a condition of receiving payment under
            such contract, that the Indian shall be allowed to choose
            such Indian health care provider as the Indian's primary
            care provider under the entity./

            / `(2) ASSURANCE OF PAYMENT TO INDIAN HEALTH CARE PROVIDERS
            FOR PROVISION OF COVERED SERVICES- Each contract with a
            managed care entity under section 1903(m) or under section
            1905(t)(3) shall require any such entity, as a condition of
            receiving payment under such contract, to satisfy the
            following requirements:/

                  / `(A) DEMONSTRATION OF ACCESS TO INDIAN HEALTH CARE
                  PROVIDERS AND APPLICATION OF ALTERNATIVE PAYMENT
                  ARRANGEMENTS- Subject to subparagraph (C), to--/

                        / `(i) demonstrate that the number of Indian
                        health care providers that are participating
                        providers with respect to such entity are
                        sufficient to ensure timely access to covered
                        Medicaid managed care services for those Indian
                        enrollees who are eligible to receive services
                        from such providers; and/

                        / `(ii) agree to pay Indian health care
                        providers, whether such providers are
                        participating or nonparticipating providers with
                        respect to the entity, for covered Medicaid
                        managed care services provided to those Indian
                        enrollees who are eligible to receive services
                        from such providers at a rate equal to the rate
                        negotiated between such entity and the provider
                        involved or, if such a rate has not been
                        negotiated, at a rate that is not less than the
                        level and amount of payment which the entity
                        would make for the services if the services were
                        furnished by a participating provider which is
                        not an Indian health care provider./

                  / `(B) PROMPT PAYMENT- To agree to make prompt payment
                  (consistent with rule for prompt payment of providers
                  under section 1932(f)) to Indian health care providers
                  that are participating providers with respect to such
                  entity or, in the case of an entity to which
                  subparagraph (A)(ii) or (C) applies, that the entity
                  is required to pay in accordance with that subparagraph./

                  / `(C) APPLICATION OF SPECIAL PAYMENT REQUIREMENTS FOR
                  FEDERALLY-QUALIFIED HEALTH CENTERS AND FOR SERVICES
                  PROVIDED BY CERTAIN INDIAN HEALTH CARE PROVIDERS- /

                        / `(i) FEDERALLY-QUALIFIED HEALTH CENTERS- /

                              / `(I) MANAGED CARE ENTITY PAYMENT
                              REQUIREMENT- To agree to pay any Indian
                              health care provider that is a
                              federally-qualified health center under
                              this title but not a participating
                              provider with respect to the entity, for
                              the provision of covered Medicaid managed
                              care services by such provider to an
                              Indian enrollee of the entity at a rate
                              equal to the amount of payment that the
                              entity would pay a federally-qualified
                              health center that is a participating
                              provider with respect to the entity but is
                              not an Indian health care provider for
                              such services./

                              / `(II) CONTINUED APPLICATION OF STATE
                              REQUIREMENT TO MAKE SUPPLEMENTAL PAYMENT-
                              Nothing in subclause (I) or subparagraph
                              (A) or (B) shall be construed as waiving
                              the application of section 1902(bb)(5)
                              regarding the State plan requirement to
                              make any supplemental payment due under
                              such section to a federally-qualified
                              health center for services furnished by
                              such center to an enrollee of a managed
                              care entity (regardless of whether the
                              federally-qualified health center is or is
                              not a participating provider with the
                              entity)./

                        / `(ii) PAYMENT RATE FOR SERVICES PROVIDED BY
                        CERTAIN INDIAN HEALTH CARE PROVIDERS- If the
                        amount paid by a managed care entity to an
                        Indian health care provider that is not a
                        federally-qualified health center for services
                        provided by the provider to an Indian enrollee
                        with the managed care entity is less than the
                        rate that applies to the provision of such
                        services by the provider under the State plan,
                        the plan shall provide for payment to the Indian
                        health care provider, whether the provider is a
                        participating or nonparticipating provider with
                        respect to the entity, of the difference between
                        such applicable rate and the amount paid by the
                        managed care entity to the provider for such
                        services./

                  / `(D) CONSTRUCTION- Nothing in this paragraph shall
                  be construed as waiving the application of section
                  1902(a)(30)(A) (relating to application of standards
                  to assure that payments are consistent with
                  efficiency, economy, and quality of care)./

            / `(3) SPECIAL RULE FOR ENROLLMENT FOR INDIAN MANAGED CARE
            ENTITIES- Regarding the application of a Medicaid managed
            care program to Indian Medicaid managed care entities, an
            Indian Medicaid managed care entity may restrict enrollment
            under such program to Indians and to members of specific
            Tribes in the same manner as Indian Health Programs may
            restrict the delivery of services to such Indians and tribal
            members./

            / `(4) DEFINITIONS- For purposes of this subsection:/

                  / `(A) INDIAN HEALTH CARE PROVIDER- The term `Indian
                  health care provider' means an Indian Health Program
                  or an Urban Indian Organization./

                  / `(B) INDIAN MEDICAID MANAGED CARE ENTITY- The term
                  `Indian Medicaid managed care entity' means a managed
                  care entity that is controlled (within the meaning of
                  the last sentence of section 1903(m)(1)(C)) by the
                  Indian Health Service, a Tribe, Tribal Organization,
                  or Urban Indian Organization, or a consortium, which
                  may be composed of 1 or more Tribes, Tribal
                  Organizations, or Urban Indian Organizations, and
                  which also may include the Service./

                  / `(C) NON-INDIAN MEDICAID MANAGED CARE ENTITY- The
                  term `non-Indian Medicaid managed care entity' means a
                  managed care entity that is not an Indian Medicaid
                  managed care entity./

                  / `(D) COVERED MEDICAID MANAGED CARE SERVICES- The
                  term `covered Medicaid managed care services' means,
                  with respect to an individual enrolled with a managed
                  care entity, items and services for which benefits are
                  available with respect to the individual under the
                  contract between the entity and the State involved./

                  / `(E) MEDICAID MANAGED CARE PROGRAM- The term
                  `Medicaid managed care program' means a program under
                  sections 1903(m), 1905(t), and 1932 and includes a
                  managed care program operating under a waiver under
                  section 1915(b) or 1115 or otherwise.'./

      / (b) Application to CHIP- Subject to section *X*013(d), section
      2107(e)(1) of such Act (42 U.S.C. 1397gg(1)) is amended by adding
      at the end the following new subparagraph:/

                  / `(E) Subsections (a)(2)(C) and (h) of section 1932.'./


      /SEC. 3303. CONSULTATION ON MEDICAID, CHIP, AND OTHER HEALTH CARE
      PROGRAMS FUNDED UNDER THE SOCIAL SECURITY ACT INVOLVING INDIAN
      HEALTH PROGRAMS AND URBAN INDIAN ORGANIZATIONS./

      / (a) Consultation With Tribal Technical Advisory Group (TTAG)-
      The Secretary of Health and Human Services shall maintain within
      the Centers for Medicaid & Medicare Services (CMS) a Tribal
      Technical Advisory Group (TTAG), which was first established in
      accordance with requirements of the charter dated September 30,
      2003, and the Secretary of Health and Human Services shall include
      in such Group a representative of a national urban Indian health
      organization and a representative of the Indian Health Service.
      The inclusion of a representative of a national urban Indian
      health organization in such Group shall not affect the
      nonapplication of the Federal Advisory Committee Act (5 U.S.C.
      App.) to such Group./

      / (b) Solicitation of Advice Under Medicaid and CHIP- /

            / (1) MEDICAID STATE PLAN AMENDMENT- Subject to subsection
            (d), 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- Subject to subsection (d),
            section 2107(e)(1) of such Act (42 U.S.C. 1397gg(e)(1)), as
            amended by section 3302(b)(2), is amended--/

                  / (A) by redesignating subparagraphs (B) through (E)
                  as subparagraphs (C) through (F), respectively; and/

                  / (B) by inserting after subparagraph (A), the
                  following new subparagraph:/

                  / `(B) 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./

      / (d) Contingency Rule- If the Children's Health Insurance Program
      Reauthorization Act of 2009 (in this subsection referred to as
      `CHIPRA') has been enacted as of the date of enactment of this
      Act, the following shall apply:/

            / (1) Subparagraph (I) of section 2107(e) of the Social
            Security Act (as redesignated by CHIPRA) is redesignated as
            subparagraph (K) and the subparagraph (E) added to section
            2107(e) of the Social Security Act by section 3302(b) is
            redesignated as subparagraph (J)./

            / (2) Subparagraphs (D) through (H) of section 2107(e) of
            the Social Security Act (as added and redesignated by
            CHIPRA) are redesignated as subparagraphs (E) through (I),
            respectively and the subparagraph (B) of section 2107(e) of
            the Social Security Act added by subsection (b)(2) of this
            section is redesignated as subparagraph (D) and amended by
            striking `1902(a)(72)' and inserting `1902(a)(73)'./

            / (3) Section 1902(a) of the Social Security Act (as amended
            by CHIPRA) is amended by striking `and' at the end of
            paragraph (71), by striking the period at the end of the
            paragraph (72) added by CHIPRA and inserting `; and' and by
            redesignated the paragraph (72) added to such section by
            subsection (b)(1) of this section as paragraph (73)./


      /SEC. 3304. APPLICATION OF PROMPT PAY REQUIREMENTS TO NURSING
      FACILITIES./

      / Section 1902(a)(37)(A) of the Social Security Act (42 U.S.C.
      1396a(a)(37)(A)) is amended by inserting `, or by nursing
      facilities,' after `health facilities'/


      /SEC. 3305. PERIOD OF APPLICATION; SUNSET./

      / This subtitle and the amendments made by this subtitle shall be
      in effect only during the period that begins on April 1, 2009, and
      ends on December 31, 2010. On and after January 1, 2011, the
      Social Security Act shall be applied as if this subtitle and the
      amendments made by this subtitle had not been enacted./


        /TITLE IV--HEALTH INFORMATION TECHNOLOGY/


      /SEC. 4001. SHORT TITLE; TABLE OF CONTENTS OF TITLE./

      / (a) Short Title- This title may be cited as the `Medicare and
      Medicaid Health Information Technology for Economic and Clinical
      Health Act' or the `M-HITECH Act'./

      / (b) Table of Contents of Title- The table of contents for this
      title is as follows:/


      /TITLE IV--HEALTH INFORMATION TECHNOLOGY/

            /Sec. 4001. Short title; table of contents of title./


      /Subtitle A--Medicare Program/

            /Sec. 4201. Incentives for eligible professionals./

            /Sec. 4202. Incentives for hospitals./

            /Sec. 4203. Premium hold harmless and implementation funding./

            /Sec. 4204. Non-application of phased-out indirect medical
            education (IME) adjustment factor for fiscal year 2009./

            /Sec. 4205. Study on application of EHR payment incentives
            for providers not receiving other incentive payments./

            /Sec. 4206. Study on availability of open source health
            information technology systems./


      /Subtitle B--Medicaid Funding/

            /Sec. 4211. Medicaid provider EHR adoption and operation
            payments; implementation funding./


        /Subtitle A--Medicare Program/


      /SEC. 4201. 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- /

                        / `(i) IN GENERAL- Subject to clause (ii) and
                        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./

                        / `(ii) NO INCENTIVE PAYMENTS WITH RESPECT TO
                        YEARS AFTER 2015- No incentive payments may be
                        made under this subsection with respect to a
                        year after 2015./

                  / `(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 clauses (iii) through
                        (v), the applicable amount specified in this
                        subparagraph for an eligible professional is as
                        follows:/

                              / `(I) For the first payment year for such
                              professional, $15,000 (or, if the first
                              payment year for such eligible
                              professional is 2011 or 2012, $18,000)./

                              / `(II) For the second payment year for
                              such professional, $12,000./

                              / `(III) For the third payment year for
                              such professional, $8,000./

                              / `(IV) For the fourth payment year for
                              such professional, $4,000./

                              / `(V) For the fifth payment year for such
                              professional, $2,000./

                              / `(VI) For any succeeding payment year
                              for such professional, $0./

                        / `(iii) PHASE DOWN FOR ELIGIBLE PROFESSIONALS
                        FIRST ADOPTING EHR IN 2014- If the first payment
                        year for an eligible professional is 2014, 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./

                        / `(iv) INCREASE FOR CERTAIN RURAL ELIGIBLE
                        PROFESSIONALS- In the case of an eligible
                        professional who predominantly furnishes
                        services under this part in a rural area that is
                        designated by the Secretary (under section
                        332(a)(1)(A) of the Public Health Service Act)
                        as a health professional shortage area, the
                        amount that would otherwise apply for a payment
                        year for such professional under subclauses (I)
                        through (V) of clause (ii) shall be increased by
                        25 percent. In implementing the preceding
                        sentence, the Secretary may, as determined
                        appropriate, apply provisions of subsections (m)
                        and (u) of section 1833 in a similar manner as
                        such provisions apply under such subsection./

                        / `(v) NO INCENTIVE PAYMENT IF FIRST ADOPTING
                        AFTER 2014- If the first payment year for an
                        eligible professional is after 2014 then the
                        applicable amount specified in this subparagraph
                        for such professional for such year and any
                        subsequent year shall be $0./

                  / `(C) NON-APPLICATION TO HOSPITAL-BASED ELIGIBLE
                  PROFESSIONALS- /

                        / `(i) IN GENERAL- No incentive payment may be
                        made under this paragraph in the case of a
                        hospital-based eligible professional./

                        / `(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 qualified
                        electronic health records, 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. In
                        doing so, the Secretary may deem satisfaction of
                        State requirements for such meaningful use for a
                        payment year under title XIX to be sufficient to
                        qualify as meaningful use under this subsection
                        and subsection (a)(7) and vice versa. 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 2015 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 2015, 99 percent (or, in the
                              case of an eligible professional who was
                              subject to the application of the payment
                              adjustment under section 1848(a)(5) for
                              2014, 98 percent);/

                              / `(II) for 2016, 98 percent; and/

                              / `(III) for 2017 and each subsequent
                              year, 97 percent./

                        / `(iii) AUTHORITY TO DECREASE APPLICABLE
                        PERCENTAGE FOR 2018 AND SUBSEQUENT YEARS- For
                        2018 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 MA-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 75 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./

                  / `(D) CAP FOR ECONOMIES OF SCALE- In no case may an
                  incentive payment be made under this subsection,
                  including under subparagraph (A), to a qualifying MA
                  organization with respect to more than 5,000 eligible
                  professionals of the 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) a percentage equal to 100 percent reduced
                        by the applicable percent (under section
                        1848(a)(7)(A)(ii)) for the year; and/

                        / `(ii) a percentage equal to the Secretary's
                        estimate of the proportion for the year, of the
                        expenditures under parts A and B that are not
                        attributable to this part, that are attributable
                        to expenditures for physicians' services./

                  / `(C) APPLICATION OF PAYMENT ADJUSTMENT- In the case
                  that a qualifying MA organization attests that not all
                  eligible professionals of the organization are
                  meaningful EHR users with respect to a year, the
                  Secretary shall apply the payment adjustment under
                  this paragraph based on the proportion of all eligible
                  professionals of the organization that are not
                  meaningful EHR users for such year. If the number of
                  eligible professionals of the organization that are
                  not meaningful EHR users for such year exceeds 5,000,
                  such number shall be reduced to 5,000 for purposes of
                  determining the proportion under the preceding sentence./

            / `(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./

            / `(7) 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--/

                  / `(A) each qualifying MA organization receiving an
                  incentive payment under this subsection for eligible
                  professionals of the organization; and/

                  / `(B) the eligible professionals of such organization
                  for which such incentive payment is based.'./

      / (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, or 2014'; and/

                  / (B) in clause (ii), by striking `and each subsequent
                  year'./

            / (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.'./

      / (f) Providing Assistance to Eligible Professionals and Certain
      Hospitals- /

            / (1) IN GENERAL- The Secretary of Health and Human Services
            shall provide assistance to eligible professionals (as
            defined in section 1848(o)(5), as added by subsection (a)),
            Medicaid providers (as defined in section 1903(t)(2) of such
            Act, as added by section 4211(a)), and eligible hospitals
            (as defined in section 1886(n)(6)(A) of such Act, as added
            by section 4202(a)) located in rural or other medically
            underserved areas to successfully choose, implement, and use
            certified EHR technology (as defined in section 1848(o)(4)
            of the Social Security Act, as added by section 4201(a))./

            / (2) USE OF ENTITIES WITH EXPERTISE- To the extent
            practicable, the Secretary shall provide such assistance
            through entities that have expertise in the choice,
            implementation, and use of such certified EHR technology./


      /SEC. 4202. 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 9,200nd
                        discharge, $200./

                        / `(ii) For the 9,201st through the 13,800th
                        discharge, 50 percent of the amount specified in
                        clause (i)./

                        / `(iii) For the 13,801st through the 23,000th
                        discharge, 30 percent of the amount specified in
                        clause (i)./

                  / `(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./

                  / `(H) LIMITATION FOR CRITICAL ACCESS HOSPITALS- In no
                  case shall the total amount of payments made under
                  this subsection to a critical access hospital for all
                  payment years exceed $1,500,000./

            / `(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--/

                        / `(i) a subsection (d) hospital; and/

                        / `(ii) a critical access hospital (as defined
                        in section 1861(mm)(1))./

                  / `(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- /

            / (1) IN GENERAL- Section 1886(b)(3)(B) of the Social
            Security Act (42 U.S.C. 1395ww(b)(3)(B)) is amended--/

                  / (A) in clause (viii)(I), by inserting `(or,
                  beginning with fiscal year 2016, by one-quarter)'
                  after `2.0 percentage points'; and/

                  / (B) by adding at the end the following new clause:/

      / `(ix)(I) For purposes of clause (i) for fiscal year 2015 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 2015, 66
      2/3 percent for fiscal year 2016, and 100 percent for fiscal year
      2017 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 2015 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.'./

            / (2) CRITICAL ACCESS HOSPITALS- Section 1814(l) of the
            Social Security Act (42 U.S.C. 1395f(l)) is amended--/

                  / (A) in subparagraph (1), by striking `paragraph (2)'
                  and inserting `paragraphs (2) and (3)'; and/

                  / (B) by adding at the end the following new paragraph:/

      / `(3)(A) Subject to subparagraph (B), for fiscal year 2015 and
      each subsequent fiscal year, in the case of a critical access
      hospital that is not a meaningful EHR user (as defined in section
      1886(n)(3)) for the reporting period for such fiscal year,
      paragraph (1) shall be applied by substituting the applicable
      percent under subparagraph (C) for the percent described in such
      paragraph (1)./

      / `(B) The Secretary may, on a case-by-case basis, exempt a
      critical access hospital from the application of subparagraph (A)
      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 subparagraph for more than 5 years./

      / `(C) The percent described in this subparagraph is--/

            / `(i) for fiscal year 2015, 100.66 percent;/

            / `(ii) for fiscal year 2016, 100.33 percent; and/

            / `(iii) for fiscal year 2017 and each subsequent fiscal
            year, 100 percent.'./

      / (c) Application to Certain MA-Affiliated Eligible Hospitals-
      Section 1853 of the Social Security Act (42 U.S.C. 1395w-23), as
      amended by section 4201(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 1814(l)(3), 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 (as defined in
            section 1886(n)(6)(A)) 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) 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./

            / `(5) POSTING ON WEBSITE- The Secretary shall post on the
            Internet website of the Centers for Medicare & Medicaid
            Services, in an easily understandable format--/

                  / `(A) a list of the names, business addresses, and
                  business phone numbers of each qualifying MA
                  organization receiving an incentive payment under this
                  subsection for eligible hospitals described in
                  paragraph (2); and/

                  / `(B) a list of the names of the eligible hospitals
                  for which such incentive payment is based.'./

      / (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. 4203. PREMIUM HOLD HARMLESS AND 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) 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, $100,000,000 for each of fiscal years
      2009 through 2015 and $45,000,000 for each succeeding fiscal year
      through fiscal year 2018, 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. 4204. NON-APPLICATION OF PHASED-OUT INDIRECT MEDICAL
      EDUCATION (IME) ADJUSTMENT FACTOR FOR FISCAL YEAR 2009./

      / (a) 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./

      / (b) No Effect on Subsequent Years- Nothing in subsection (a)
      shall be construed as having any effect on the application of
      paragraph (d) of section 412.322 of title 42, Code of Federal
      Regulations./


      /SEC. 4205. 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 1848(o)(4) of the Social
            Security Act, as added by section 4311(a)) 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 such 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
                  (as so defined) 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)./


      /SEC. 4206. STUDY ON AVAILABILITY OF OPEN SOURCE HEALTH
      INFORMATION TECHNOLOGY SYSTEMS./

      / (a) In General- /

            / (1) STUDY- The Secretary of Health and Human Services
            shall, in consultation with the Under Secretary for Health
            of the Veterans Health Administration, the Director of the
            Indian Health Service, the Secretary of Defense, the
            Director of the Agency for Healthcare Research and Quality,
            the Administrator of the Health Resources and Services
            Administration, and the Chairman of the Federal
            Communications Commission, conduct a study on--/

                  / (A) the current availability of open source health
                  information technology systems to Federal safety net
                  providers (including small, rural providers);/

                  / (B) the total cost of ownership of such systems in
                  comparison to the cost of proprietary commercial
                  products available;/

                  / (C) the ability of such systems to respond to the
                  needs of, and be applied to, various populations
                  (including children and disabled individuals); and/

                  / (D) the capacity of such systems to facilitate
                  interoperability./

            / (2) CONSIDERATIONS- In conducting the study under
            paragraph (1), the Secretary of Health and Human Services
            shall take into account the circumstances of smaller health
            care providers, health care providers located in rural or
            other medically underserved areas, and safety net providers
            that deliver a significant level of health care to uninsured
            individuals, Medicaid beneficiaries, SCHIP beneficiaries,
            and other vulnerable individuals./

      / (b) Report- Not later than October 1, 2010, the Secretary of
      Health and Human Services shall submit to Congress a report on the
      findings and the conclusions of the study conducted under
      subsection (a), together with recommendations for such legislation
      and administrative action as the Secretary determines appropriate./


        /Subtitle B--Medicaid Funding/


      /SEC. 4211. MEDICAID PROVIDER EHR 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 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 term `applicable
      percent' means--/

            / `(i) in the case of a Medicaid provider described in
            paragraph (2)(A), 85 percent;/

            / `(ii) in the case of a Medicaid provider described in
            clause (i) or (ii) of paragraph (2)(B), 100 percent; and/

            / `(iii) in the case of a Medicaid provider described in
            clause (iii) of paragraph (2)(B), a percent specified by the
            Secretary, but not less than 85 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 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 eligible 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 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 qualified electronic health records, 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). In
            establishing such means, which may include the reporting of
            clinical quality measures to the State, the State shall
            ensure that populations with unique needs, such as children,
            are appropriately addressed./

            / `(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 clause (ii) 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 three years for which discharge data are available./

      / `(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 establish and implement a detailed process to
      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. The Secretary
      shall promulgate regulations to carry out the preceding sentence./

      / `(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 2018, 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./

      / (c) HHS Report on Implementation of Detailed Process to Assure
      No Duplication of Funding- Not later than July 1, 2012, the
      Secretary of Health and Human Services shall submit to Congress a
      report on the establishment and implementation of the detailed
      process under section 1903(t)(7) of the Social Security Act, as
      added by subsection (a), together with recommendations for such
      legislation and administrative action as the Secretary determines
      appropriate./


        /TITLE V--STATE FISCAL RELIEF/


      /SEC. 5000. PURPOSES; TABLE OF CONTENTS./

      / (a) Purposes- The purposes of this title are as follows:/

            / (1) To provide fiscal relief to States in a period of
            economic downturn./

            / (2) To protect and maintain State Medicaid programs during
            a period of economic downturn, including by helping to avert
            cuts to provider payment rates and benefits or services, and
            to prevent constrictions of income eligibility requirements
            for such programs, but not to promote increases in such
            requirements./

      / (b) Table of Contents- The table of contents for this title is
      as follows:/


      /TITLE V--STATE FISCAL RELIEF/

            /Sec. 5000. Purposes; table of contents./

            /Sec. 5001. Temporary increase of Medicaid FMAP./

            /Sec. 5002. Extension and update of special rule for
            increase of Medicaid DSH allotments for low DSH States./

            /Sec. 5003. Payment of Medicare liability to States as a
            result of the Special Disability Workload Project./

            /Sec. 5004. Funding for the Department of Health and Human
            Services Office of the Inspector General./

            /Sec. 5005. GAO study and report regarding State needs
            during periods of national economic downturn./


      /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 7.6 Percentage Point Increase- Subject to
      subsections (e), (f), and (g), 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 7.6 percentage points./

      / (c) Additional Relief Based on Increase in Unemployment- /

            / (1) IN GENERAL- Subject to subsections (e), (f), and (g),
            if a State is a qualifying State under paragraph (2) for a
            calendar quarter occurring during the recession adjustment
            period, the FMAP for the State shall be further increased by
            the number of percentage points equal to the product of the
            State percentage applicable for the State under section
            1905(b) of the Social Security Act (42 U.S.C. 1396d(b))
            after the application of subsections (a) and (b) and the
            applicable percent determined in paragraph (3) for the
            calendar quarter (or, if greater, for a previous such
            calendar quarter, subject to paragraph (4)) ./

            / (2) QUALIFYING CRITERIA- /

                  / (A) IN GENERAL- For purposes of paragraph (1), a
                  State qualifies for additional relief under this
                  subsection for a calendar quarter occurring during the
                  recession adjustment period if the State is 1 of the
                  50 States or the District of Columbia and the State
                  satisfies any of the following criteria for the quarter:/

                        / (i) An increase of at least 1.5 percentage
                        points, but less than 2.5 percentage points, in
                        the average monthly unemployment rate,
                        seasonally adjusted, for the State or District,
                        as determined by comparing months in the most
                        recent previous 3-consecutive month period for
                        which data are available for the State or
                        District to the lowest average monthly
                        unemployment rate, seasonally adjusted, for the
                        State or District for any 3-consecutive-month
                        period preceding that period and beginning on or
                        after January 1, 2006 (based on the most
                        recently available monthly publications of the
                        Bureau of Labor Statistics of the Department of
                        Labor)./

                        / (ii) An increase of at least 2.5 percentage
                        points, but less than 3.5 percentage points, in
                        the average monthly unemployment rate,
                        seasonally adjusted, for the State or District
                        (as so determined)./

                        / (iii) An increase of at least 3.5 percentage
                        points for the State or District, in the average
                        monthly unemployment rate, seasonally adjusted,
                        for the State or District (as so determined)./

                  / (B) MAINTENANCE OF STATUS- If a State qualifies for
                  additional relief under this subsection for a calendar
                  quarter, it shall be deemed to have qualified for such
                  relief for each subsequent calendar quarter ending
                  before July 1, 2010./

            / (3) APPLICABLE PERCENT- For purposes of paragraph (1), the
            applicable percent is--/

                  / (A) 2.5 percent, if the State satisfies the criteria
                  described in paragraph (2)(A)(i) for the calendar
                  quarter;/

                  / (B) 4.5 percent if the State satisfies the criteria
                  described in paragraph (2)(A)(ii) for the calendar
                  quarter; and/

                  / (C) 6.5 percent if the State satisfies the criteria
                  described in paragraph (2)(A)(iii) for the calendar
                  quarter./

            / (4) MAINTENANCE OF HIGHER PERCENTAGE REDUCTION FOR PERIOD
            AFTER LOWER PERCENTAGE DEDUCTION WOULD OTHERWISE TAKE EFFECT- /

                  / (A) HOLD HARMLESS PERIOD- If the percentage
                  reduction applied to a State under paragraph (3) for
                  any calendar quarter in the recession adjustment
                  period beginning on or after January 1, 2009, and
                  ending before July 1, 2010, (determined without regard
                  to this paragraph) is less than the percentage
                  reduction applied for the preceding quarter (as so
                  determined), the higher percentage reduction shall
                  continue in effect for each subsequent calendar
                  quarter ending before July 1, 2010./

                  / (B) NOTICE OF DECREASE IN PERCENTAGE REDUCTION- The
                  Secretary shall notify a State at least 3 months prior
                  to applying any lower percentage reduction to the
                  State under paragraph (3)./

      / (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 6 U.S.C. 1308) shall each be increased
      by 15.2 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 shall not apply with respect to--/

            / (1) disproportionate share hospital payments described in
            section 1923 of such Act (42 U.S.C. 1396r-4);/

            / (2) payments under title IV of such Act (42 U.S.C. 601 et
            seq.) (except that the increases under subsections (a) and
            (b) shall apply to payments under part E of title IV of such
            Act (42 U.S.C. 670 et seq.));/

            / (3) payments under title XXI of such Act (42 U.S.C. 1397aa
            et seq.);/

            / (4) any 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)); or/

            / (5) any payments under title XIX of such Act that are
            attributable to expenditures for medical assistance provided
            to individuals made eligible under a State plan under title
            XIX of the Social Security Act (including under any waiver
            under such title or under section 1115 of such Act (42
            U.S.C. 1315)) because of income standards (expressed as a
            percentage of the poverty line) for eligibility for medical
            assistance that are higher than the income standards (as so
            expressed) for such eligibility as in effect on July 1, 2008./

      / (f) State Ineligibility- /

            / (1) MAINTENANCE OF ELIGIBILITY REQUIREMENTS- /

                  / (A) IN GENERAL- Subject to subparagraphs (B) and
                  (C), 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./

                  / (B) STATE REINSTATEMENT OF ELIGIBILITY PERMITTED-
                  Subject to subparagraph (C), 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 subparagraph (A) 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./

                  / (C) SPECIAL RULES- A State shall not be ineligible
                  under subparagraph (A)--/

                        / (i) 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, 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; or/

                        / (ii) on the basis of a restriction that was
                        directed to be made under State law as of July
                        1, 2008, and would have been in effect as of
                        such date, but for a delay in the request for,
                        and approval of, a waiver under section 1115 of
                        such Act with respect to such restriction./

            / (2) COMPLIANCE WITH PROMPT PAY REQUIREMENTS- No State
            shall be eligible for an increased FMAP rate as provided
            under this section for any claim submitted by a provider
            subject to the terms of section 1902(a)(37)(A) of the Social
            Security Act (42 U.S.C. 1396a(a)(37)(A)) during any period
            in which that State has failed to pay claims in accordance
            with section 1902(a)(37)(A) of such Act. Each State shall
            report to the Secretary, no later than 30 days following the
            1st day of the month, its compliance with the requirements
            of section 1902(a)(37)(A) of the Social Security Act as they
            pertain to claims made for covered services during the
            preceding month./

            / (3) 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) Requirements- /

            / (1) IN GENERAL- A State may not deposit or credit the
            additional Federal funds paid to the State as a result of
            this section to any reserve or rainy day fund maintained by
            the State./

            / (2) STATE REPORTS- Each State that is paid additional
            Federal funds as a result of this section shall, not later
            than September 30, 2011, submit a report to the Secretary,
            in such form and such manner as the Secretary shall
            determine, regarding how the additional Federal funds were
            expended./

            / (3) ADDITIONAL 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 (b) or (c), or an increase in a
            cap amount under subsection (d), if it requires that such
            political subdivisions pay for quarters during the recession
            adjustment period a greater percentage of the non-Federal
            share of such expenditures, or a greater percentage of the
            non-Federal share of payments under section 1923, than the
            respective 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) POVERTY LINE- The term `poverty line' has the meaning
            given such term in section 673(2) of the Community Services
            Block Grant Act (42 U.S.C. 9902(2)), including any revision
            required by such section./

            / (3) RECESSION ADJUSTMENT PERIOD- The term `recession
            adjustment period' means the period beginning on October 1,
            2008, and ending on December 31, 2010./

            / (4) SECRETARY- The term `Secretary' means the Secretary of
            Health and Human Services./

            / (5) STATE- The term `State' has the meaning given such
            term 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. EXTENSION AND UPDATE OF SPECIAL RULE FOR INCREASE OF
      MEDICAID DSH ALLOTMENTS FOR LOW DSH STATES./

      / Section 1923(f)(5) of the Social Security Act (42 U.S.C.
      1396r-4(f)(5)) is amended--/

            / (1) in subparagraph (B)--/

                  / (A) in the subparagraph heading, by striking `YEAR
                  2004 AND SUBSEQUENT FISCAL YEARS' and inserting `YEARS
                  2004 THROUGH 2008';/

                  / (B) in clause (i), by inserting `and' after the
                  semicolon;/

                  / (C) in clause (ii), by striking `; and' and
                  inserting a period; and/

                  / (D) by striking clause (iii); and/

            / (2) by adding at the end the following subparagraph:/

                  / `(C) FOR FISCAL YEAR 2009 AND SUBSEQUENT FISCAL
                  YEARS- In the case of a State in which the total
                  expenditures under the State plan (including Federal
                  and State shares) for disproportionate share hospital
                  adjustments under this section for fiscal year 2006,
                  as reported to the Administrator of the Centers for
                  Medicare & Medicaid Services as of August 31, 2009, is
                  greater than 0 but less than 3 percent of the State's
                  total amount of expenditures under the State plan for
                  medical assistance during the fiscal year, the DSH
                  allotment for the State with respect to--/

                        / `(i) fiscal year 2009, shall be the DSH
                        allotment for the State for fiscal year 2008
                        increased by 16 percent;/

                        / `(ii) fiscal year 2010, shall be the DSH
                        allotment for the State for fiscal year 2009
                        increased by 16 percent;/

                        / `(iii) fiscal year 2011 for the period ending
                        on December 31, 2010, shall be 1/4 of the DSH
                        allotment for the State for fiscal year 2010
                        increased by 16 percent;/

                        / `(iv) fiscal year 2011 for the period
                        beginning on January 1, 2011, and ending on
                        September 30, 2011, shall be 3/4 of the DSH
                        allotment that would have been determined under
                        this subsection for the State for fiscal year
                        2011 if this subparagraph had not been enacted;/

                        / `(v) fiscal year 2012, shall be the DSH
                        allotment that would have been determined under
                        this subsection for the State for fiscal year
                        2012 if this subparagraph had not been enacted; and/

                        / `(vi) fiscal year 2013 and any subsequent
                        fiscal year, shall be the DSH allotment for the
                        State for the previous fiscal year subject to an
                        increase for inflation as provided in paragraph
                        (3)(A).'./


      /SEC. 5003. PAYMENT OF MEDICARE LIABILITY TO STATES AS A RESULT OF
      THE SPECIAL DISABILITY WORKLOAD PROJECT./

      / (a) In General- The Secretary, in consultation with the
      Commissioner, shall work with each State to reach an agreement,
      not later than 3 months after the date of enactment of this Act,
      on the amount of a payment for the State related to the Medicare
      program liability as a result of the Special Disability Workload
      project, subject to the requirements of subsection (c)./

      / (b) Payments- /

            / (1) DEADLINE FOR MAKING PAYMENTS- Not later than 30 days
            after reaching an agreement with a State under subsection
            (a), the Secretary shall pay the State, from the amounts
            appropriated under paragraph (2), the payment agreed to for
            the State./

            / (2) APPROPRIATION- Out of any money in the Treasury not
            otherwise appropriated, there is appropriated $3,000,000,000
            for fiscal year 2009 for making payments to States under
            paragraph (1)./

            / (3) LIMITATIONS- In no case may--/

                  / (A) the aggregate amount of payments made by the
                  Secretary to States under paragraph (1) exceed
                  $3,000,000,000; or/

                  / (B) any payments be provided by the Secretary under
                  this section after the first day of the first month
                  that begins 4 months after the date of enactment of
                  this Act./

      / (c) Requirements- The requirements of this subsection are the
      following:/

            / (1) FEDERAL DATA USED TO DETERMINE AMOUNT OF PAYMENTS- The
            amount of the payment under subsection (a) for each State is
            determined on the basis of the most recent Federal data
            available, including the use of proxies and reasonable
            estimates as necessary, for determining expeditiously the
            amount of the payment that shall be made to each State that
            enters into an agreement under this section. The payment
            methodology shall consider the following factors:/

                  / (A) The number of SDW cases found to have been
                  eligible for benefits under the Medicare program and
                  the month of the initial Medicare program eligibility
                  for such cases./

                  / (B) The applicable non-Federal share of expenditures
                  made by a State under the Medicaid program during the
                  time period for SDW cases./

                  / (C) Such other factors as the Secretary and the
                  Commissioner, in consultation with the States,
                  determine appropriate./

            / (2) CONDITIONS FOR PAYMENTS- A State shall not receive a
            payment under this section unless the State--/

                  / (A) waives the right to file a civil action (or to
                  be a party to any action) in any Federal or State
                  court in which the relief sought includes a payment
                  from the United States to the State related to the
                  Medicare liability under title XVIII of the Social
                  Security Act (42 U.S.C. 1395 et seq.) as a result of
                  the Special Disability Workload project; and/

                  / (B) releases the United States from any further
                  claims for reimbursement of State expenditures as a
                  result of the Special Disability Workload project./

            / (3) NO INDIVIDUAL STATE CLAIMS DATA REQUIRED- No State
            shall be required to submit individual claims evidencing
            payment under the Medicaid program as a condition for
            receiving a payment under this section./

            / (4) INELIGIBLE STATES- No State that is a party to a civil
            action in any Federal or State court in which the relief
            sought includes a payment from the United States to the
            State related to the Medicare liability under title XVIII of
            the Social Security Act (42 U.S.C. 1395 et seq.) as a result
            of the Special Disability Workload project shall be eligible
            to receive a payment under this section while such an action
            is pending or if such an action is resolved in favor of the
            State./

      / (d) Definitions- In this section:/

            / (1) COMMISSIONER- The term `Commissioner' means the
            Commissioner of Social Security./

            / (2) MEDICAID PROGRAM- The term `Medicaid program' means
            the program of medical assistance established under title
            XIX of the Social Security Act (42 U.S.C. 1396a et seq.) and
            includes medical assistance provided under any waiver of
            that program approved under section 1115 or 1915 of such Act
            (42 U.S.C. 1315, 1396n) or otherwise./

            / (3) MEDICARE PROGRAM- The term `Medicare program' means
            the program established under title XVIII of the Social
            Security Act (42 U.S.C. 1395 et seq.)./

            / (4) SECRETARY- The term `Secretary' means the Secretary of
            Health and Human Services./

            / (5) SDW CASE- The term `SDW case' means a case in the
            Special Disability Workload project involving an individual
            determined by the Commissioner to have been eligible for
            benefits under title II of the Social Security Act (42
            U.S.C. 401 et seq.) for a period during which such benefits
            were not provided to the individual and who was, during all
            or part of such period, enrolled in a State Medicaid program./

            / (6) SPECIAL DISABILITY WORKLOAD PROJECT- The term `Special
            Disability Workload project' means the project described in
            the 2008 Annual Report of the Board of Trustees of the
            Federal Old-Age and Survivors Insurance and Federal
            Disability Insurance Trust Funds, H.R. Doc. No. 110-104,
            110th Cong. (2008)./

            / (7) STATE- The term `State' means each of the 50 States
            and the District of Columbia./


      /SEC. 5004. FUNDING FOR THE DEPARTMENT OF HEALTH AND HUMAN
      SERVICES OFFICE OF THE INSPECTOR GENERAL./

      / For purposes of ensuring the proper expenditure of Federal funds
      under title XIX of the Social Security Act (42 U.S.C. 1396 et
      seq.), there is appropriated to the Office of the Inspector
      General of the Department of Health and Human Services, out of any
      money in the Treasury not otherwise appropriated and without
      further appropriation, $31,250,000 for the recession adjustment
      period (as defined in section 5001(h)(3)). Amounts appropriated
      under this section shall remain available for expenditure until
      September 30, 2012, and shall be in addition to any other amounts
      appropriated or made available to such Office for such purposes./


      /SEC. 5005. GAO STUDY AND REPORT REGARDING STATE NEEDS DURING
      PERIODS OF NATIONAL ECONOMIC DOWNTURN./

      / (a) In General- The Comptroller General of the United States
      shall study the period of national economic downturn in effect on
      the date of enactment of this Act, as well as previous periods of
      national economic downturn since 1974, for the purpose of
      developing recommendations for addressing the needs of States
      during such periods. As part of such analysis, the Comptroller
      General shall study the past and projected effects of temporary
      increases in the Federal medical assistance percentage under the
      Medicaid program with respect to such periods./

      / (b) Report- Not later than April 1, 2011, the Comptroller
      General of the United States shall submit a report to the
      appropriate committees of Congress on the results of the study
      conducted under paragraph (1). Such report shall include the
      following:/

            / (1) Such recommendations as the Comptroller General
            determines appropriate for modifying the national economic
            downturn assistance formula for temporary adjustment of the
            Federal medical assistance percentage under Medicaid (also
            referred to as a `countercyclical FMAP') described in GAO
            report number GAO-07-97 to improve the effectiveness of the
            application of such percentage in addressing the needs of
            States during periods of national economic downturn,
            including recommendations for--/

                  / (A) improvements to the factors that would begin and
                  end the application of such percentage;/

                  / (B) how the determination of the amount of such
                  percentage could be adjusted to address State and
                  regional economic variations during such periods; and/

                  / (C) how the determination of the amount of such
                  percentage could be adjusted to be more responsive to
                  actual Medicaid costs incurred by States during such
                  periods./

            / (2) An analysis of the impact on States during such
            periods of--/

                  / (A) declines in private health benefits coverage;/

                  / (B) declines in State revenues; and/

                  / (C) caseload maintenance and growth under Medicaid,
                  the State Children's Health Insurance Program, or any
                  other publicly-funded programs to provide health
                  benefits coverage for State residents./

            / (3) Identification of, and recommendations for addressing,
            the effects on States of any other specific economic
            indicators that the Comptroller General determines appropriate./


        /TITLE VI--EXECUTIVE COMPENSATION/


      /Subtitle A--Oversight/


      /TITLE VI--EXECUTIVE COMPENSATION OVERSIGHT/

            /Sec. 6001. Definitions./

            /Sec. 6002. Executive compensation and corporate governance./

            /Sec. 6003. Board Compensation Committee./

            /Sec. 6004. Limitation on luxury expenditures./

            /Sec. 6005. Shareholder approval of executive compensation./

            /Sec. 6006. Review of prior payments to executives./


      /SEC. 6001. DEFINITIONS./

      / For purposes of this title, the following definitions shall apply:/

            / (1) SENIOR EXECUTIVE OFFICER- The term `senior executive
            officer' means an individual who is 1 of the top 5 most
            highly paid executives of a public company, whose
            compensation is required to be disclosed pursuant to the
            Securities Exchange Act of 1934, and any regulations issued
            thereunder, and non-public company counterparts./

            / (2) GOLDEN PARACHUTE PAYMENT- The term `golden parachute
            payment' means any payment to a senior executive officer for
            departure from a company for any reason, except for payments
            for services performed or benefits accrued./

            / (3) TARP- The term `TARP' means the Troubled Asset Relief
            Program established under the Emergency Economic
            Stabilization Act of 2008 (Public Law 110-343, 12 U.S.C.
            5201 et seq.)./

            / (4) TARP RECIPIENT- The term `TARP recipient' means any
            entity that has received or will receive financial
            assistance under the financial assistance provided under the
            TARP./

            / (5) SECRETARY- The term `Secretary' means the Secretary of
            the Treasury./

            / (6) COMMISSION- The term `Commission' means the Securities
            and Exchange Commission./


      /SEC. 6002. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE./

      / (a) In General- During the period in which any obligation
      arising from financial assistance provided under the TARP remains
      outstanding, each TARP recipient shall be subject to--/

            / (1) the standards established by the Secretary under this
            title; and/

            / (2) the provisions of section 162(m)(5) of the Internal
            Revenue Code of 1986, as applicable./

      / (b) Standards Required- The Secretary shall require each TARP
      recipient to meet appropriate standards for executive compensation
      and corporate governance./

      / (c) Specific Requirements- The standards established under
      subsection (b) shall include--/

            / (1) limits on compensation that exclude incentives for
            senior executive officers of the TARP recipient to take
            unnecessary and excessive risks that threaten the value of
            such recipient during the period that any obligation arising
            from TARP assistance is outstanding;/

            / (2) a provision for the recovery by such TARP recipient of
            any bonus, retention award, or incentive compensation paid
            to a senior executive officer and any of the next 20 most
            highly-compensated employees of the TARP recipient based on
            statements of earnings, revenues, gains, or other criteria
            that are later found to be materially inaccurate;/

            / (3) a prohibition on such TARP recipient making any golden
            parachute payment to a senior executive officer or any of
            the next 5 most highly-compensated employees of the TARP
            recipient during the period that any obligation arising from
            TARP assistance is outstanding;/

            / (4) a prohibition on such TARP recipient paying or
            accruing any bonus, retention award, or incentive
            compensation during the period that the obligation is
            outstanding to at least the 25 most highly-compensated
            employees, or such higher number as the Secretary may
            determine is in the public interest with respect to any TARP
            recipient;/

            / (5) a prohibition on any compensation plan that would
            encourage manipulation of the reported earnings of such TARP
            recipient to enhance the compensation of any of its
            employees; and/

            / (6) a requirement for the establishment of a Board
            Compensation Committee that meets the requirements of
            section 6003./

      / (d) Certification of Compliance- The chief executive officer and
      chief financial officer (or the equivalents thereof) of each TARP
      recipient shall provide a written certification of compliance by
      the TARP recipient with the requirements of this title--/

            / (1) in the case of a TARP recipient, the securities of
            which are publicly traded, to the Securities and Exchange
            Commission, together with annual filings required under the
            securities laws; and/

            / (2) in the case of a TARP recipient that is not a publicly
            traded company, to the Secretary./


      /SEC. 6003. BOARD COMPENSATION COMMITTEE./

      / (a) Establishment of Board Required- Each TARP recipient shall
      establish a Board Compensation Committee, comprised entirely of
      independent directors, for the purpose of reviewing employee
      compensation plans./

      / (b) Meetings- The Board Compensation Committee of each TARP
      recipient shall meet at least semiannually to discuss and evaluate
      employee compensation plans in light of an assessment of any risk
      posed to the TARP recipient from such plans./


      /SEC. 6004. LIMITATION ON LUXURY EXPENDITURES./

      / (a) Policy Required- The board of directors of any TARP
      recipient shall have in place a company-wide policy regarding
      excessive or luxury expenditures, as identified by the Secretary,
      which may include excessive expenditures on--/

            / (1) entertainment or events;/

            / (2) office and facility renovations;/

            / (3) aviation or other transportation services; or/

            / (4) other activities or events that are not reasonable
            expenditures for conferences, staff development, reasonable
            performance incentives, or other similar measures conducted
            in the normal course of the business operations of the TARP
            recipient./


      /SEC. 6005. SHAREHOLDER APPROVAL OF EXECUTIVE COMPENSATION./

      / (a) Annual Shareholder Approval of Executive Compensation- Any
      proxy or consent or authorization for an annual or other meeting
      of the shareholders of any TARP recipient during the period in
      which any obligation arising from financial assistance provided
      under the TARP remains outstanding shall permit a separate
      shareholder vote to approve the compensation of executives, as
      disclosed pursuant to the compensation disclosure rules of the
      Commission (which disclosure shall include the compensation
      discussion and analysis, the compensation tables, and any related
      material)./

      / (b) Nonbinding Vote- A shareholder vote described in subsection
      (a) shall not be binding on the board of directors of a TARP
      recipient, and may not be construed as overruling a decision by
      such board, nor to create or imply any additional fiduciary duty
      by such board, nor shall such vote be construed to restrict or
      limit the ability of shareholders to make proposals for inclusion
      in proxy materials related to executive compensation./

      / (c) Deadline for Rulemaking- Not later than 1 year after the
      date of enactment of this Act, the Commission shall issue any
      final rules and regulations required by this section./


      /SEC. 6006. REVIEW OF PRIOR PAYMENTS TO EXECUTIVES./

      / (a) In General- The Secretary shall review bonuses, retention
      awards, and other compensation paid to employees of each entity
      receiving TARP assistance before the date of enactment of this Act
      to determine whether any such payments were excessive,
      inconsistent with the purposes of this Act or the TARP, or
      otherwise contrary to the public interest./

      / (b) Negotiations for Reimbursement- If the Secretary makes a
      determination described in subsection (a), the Secretary shall
      seek to negotiate with the TARP recipient and the subject employee
      for appropriate reimbursements to the Federal Government with
      respect to compensation or bonuses./


        /Subtitle B--Limits on Executive Compensation/


      /SEC. 6011. SHORT TITLE./

      / This subtitle may be cited as the `Cap Executive Officer Pay Act
      of 2009'./


      /SEC. 6012. LIMIT ON EXECUTIVE COMPENSATION./

      / (a) In General- Notwithstanding any other provision of law or
      agreement to the contrary, no person who is an officer, director,
      executive, or other employee of a financial institution or other
      entity that receives or has received funds under the Troubled
      Asset Relief Program (or `TARP'), established under section 101 of
      the Emergency Economic Stabilization Act of 2008, may receive
      annual compensation in excess of the amount of compensation paid
      to the President of the United States./

      / (b) Duration- The limitation in subsection (a) shall be a
      condition of the receipt of assistance under the TARP, and of any
      modification to such assistance that was received on or before the
      date of enactment of this Act, and shall remain in effect with
      respect to each financial institution or other entity that
      receives such assistance or modification for the duration of the
      assistance or obligation provided under the TARP./


      /SEC. 6013. RULEMAKING AUTHORITY./

      / The Secretary shall expeditiously issue such rules as are
      necessary to carry out this subtitle, including with respect to
      reimbursement of compensation amounts, as appropriate./


      /SEC. 6014. COMPENSATION./

      / As used in this subtitle, the term `compensation' includes
      wages, salary, deferred compensation, retirement contributions,
      options, bonuses, property, and any other form of compensation or
      bonus that the Secretary of the Treasury determines is appropriate./


        /Subtitle C--Excessive Bonuses/


      /SEC. 6021. TREATMENT OF EXCESSIVE BONUSES BY TARP RECIPIENTS./

      / (a) In General- If, before the date of enactment of this Act,
      the preferred stock of a financial institution was purchased by
      the Government using funds provided under the Troubled Asset
      Relief Program established pursuant to the Emergency Economic
      Stabilization Act of 2008, then, notwithstanding any otherwise
      applicable restriction on the redeemability of such preferred
      stock, such financial institution shall redeem an amount of such
      preferred stock equal to the aggregate amount of all excessive
      bonuses paid or payable to all covered individuals./

      / (b) Timing- Each financial institution described in subsection
      (a) shall comply with the requirements of subsection (a)--/

            / (1) not later than 120 days after the date of enactment of
            this Act, with respect to excessive bonuses (or portions
            thereof) paid before the date of enactment of this Act; and/

            / (2) not later than the day before an excessive bonus (or
            portion thereof) is paid, with respect to any excessive
            bonus (or portion thereof) paid on or after the date of
            enactment of this Act./

      / (c) Definitions- As used in this section, the following
      definitions shall apply:/

            / (1) EXCESSIVE BONUS- /

                  / (A) IN GENERAL- The term `excessive bonus' means the
                  portion of the applicable bonus payments made to a
                  covered individual in excess of $100,000./

                  / (B) APPLICABLE BONUS PAYMENTS- /

                        / (i) IN GENERAL- The term `applicable bonus
                        payment' means any bonus payment to a covered
                        individual--/

                              / (I) which is paid or payable by reason
                              of services performed by such individual
                              in a taxable year of the financial
                              institution (or any member of a controlled
                              group described in subparagraph (D))
                              ending in 2008, and/

                              / (II) the amount of which was first
                              communicated to such individual during the
                              period beginning on January 1, 2008, and
                              ending January 31, 2009, or was based on a
                              resolution of the board of directors of
                              such institution that was adopted before
                              the end of such taxable year./

                        / (ii) CERTAIN PAYMENTS AND CONDITIONS
                        DISREGARDED- In determining whether a bonus
                        payment is described in clause (i)(I)--/

                              / (I) a bonus payment that relates to
                              services performed in any taxable year
                              before the taxable year described in such
                              clause and that is wholly or partially
                              contingent on the performance of services
                              in the taxable year so described shall be
                              disregarded, and/

                              / (II) any condition on a bonus payment
                              for services performed in the taxable year
                              so described that the employee perform
                              services in taxable years after the
                              taxable year so described shall be
                              disregarded./

                  / (C) BONUS PAYMENT- The term `bonus payment' means
                  any payment which--/

                        / (i) is a discretionary payment to a covered
                        individual by a financial institution (or any
                        member of a controlled group described in
                        subparagraph (D)) for services rendered,/

                        / (ii) is in addition to any amount payable to
                        such individual for services performed by such
                        individual at a regular hourly, daily, weekly,
                        monthly, or similar periodic rate, and/

                        / (iii) is paid or payable in cash or other
                        property other than--/

                              / (I) stock in such institution or member, or/

                              / (II) an interest in a troubled asset
                              (within the meaning of the Emergency
                              Economic Stabilization Act of 2008) held
                              directly or indirectly by such institution
                              or member./

                  /Such term does not include payments to an employee as
                  commissions, welfare and fringe benefits, or expense
                  reimbursements./

                  / (D) COVERED INDIVIDUAL- The term `covered
                  individual' means, with respect to any financial
                  institution, any director or officer or other employee
                  of such financial institution or of any member of a
                  controlled group of corporations (within the meaning
                  of section 52(a) of the Internal Revenue Code of 1986)
                  that includes such financial institution./

            / (2) FINANCIAL INSTITUTION- The term `financial
            institution' has the same meaning as in section 3 of the
            Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5252)./

      / (d) Excise Tax on TARP Companies That Fail To Redeem Certain
      Securities From United States- /

            / (1) IN GENERAL- Chapter 46 of the Internal Revenue Code of
            1986 (relating to excise tax on golden parachute payments)
            is amended by adding at the end the following new section:/


      /`SEC. 4999A. FAILURE TO REDEEM CERTAIN SECURITIES FROM UNITED
      STATES./

      / `(a) Imposition of Tax- There is hereby imposed a tax on any
      financial institution which--/

            / `(1) is required to redeem an amount of its preferred
            stock from the United States pursuant to section 1903(a) of
            the American Recovery and Reinvestment Tax Act of 2009, and/

            / `(2) fails to redeem all or any portion of such amount
            within the period prescribed for such redemption./

      / `(b) Amount of Tax- The amount of the tax imposed by subsection
      (a) shall be equal to 35 percent of the amount which the financial
      institution failed to redeem within the time prescribed under
      1903(b) of the American Recovery and Reinvestment Tax Act of 2009./

      / `(c) Administrative Provisions- /

            / `(1) IN GENERAL- For purposes of subtitle F, any tax
            imposed by this section shall be treated as a tax imposed by
            subtitle A for the taxable year in which a deduction is
            allowed for any excessive bonus with respect to which the
            redemption described in subsection (a)(1) is required to be
            made./

            / `(2) EXTENSION OF TIME- The due date for payment of tax
            imposed by this section shall in no event be earlier than
            the 150th day following the date of the enactment of this
            section.'./

            / (2) CONFORMING AMENDMENTS- /

                  / (A) The heading for chapter 46 of such Code are
                  amended to read as follows:/


      /`Chapter 46-Taxes on Certain Excessive Remuneration/

            /`Sec. 4999. Golden parachute payments./

            /`Sec. 4999A. Failure to redeem certain securities from
            United States.'./

                  / (B) The item relating to chapter 46 in the table of
                  chapters for subtitle D of such Code is amended to
                  read as follows:/

            /`Chapter 46. Taxes on excessive remuneration.'./

            / (3) EFFECTIVE DATE- The amendments made by this subsection
            shall apply to failures described in section 4999A(a)(2) of
            the Internal Revenue Code of 1986 occurring after the date
            of the enactment of this Act./


        /TITLE VII--FORECLOSURE PREVENTION/


      /TITLE VII--FORECLOSURE PREVENTION/

            /Sec. 7001. Mandatory loan modifications./


      /SEC. 7001. MANDATORY LOAN MODIFICATIONS./

      / Section 109(a) of the Emergency Economic Stabilization Act of
      2008 (12 U.S.C. 5219) is amended--/

            / (1) by striking the last sentence;/

            / (2) by striking `To the extent' and inserting the following:/

            / `(1) IN GENERAL- To the extent'; and/

            / (3) by adding at the end the following:/

            / `(2) LOAN MODIFICATIONS REQUIRED- /

                  / `(A) IN GENERAL- In addition to actions required
                  under paragraph (1), the Secretary shall, not later
                  than 15 days after the date of enactment of this
                  paragraph, develop and implement a plan to facilitate
                  loan modifications to prevent avoidable mortgage loan
                  foreclosures./

                  / `(B) FUNDING- Of amounts made available under
                  section 115 and not otherwise obligated, not less than
                  $50,000,000,000, shall be made available to the
                  Secretary for purposes of carrying out the mortgage
                  loan modification plan required to be developed and
                  implemented under this paragraph./

                  / `(C) CRITERIA- The loan modification plan required
                  by this paragraph may incorporate the use of--/

                        / `(i) loan guarantees and credit enhancements;/

                        / `(ii) the reduction of loan principal amounts
                        and interest rates;/

                        / `(iii) extension of mortgage loan terms; and/

                        / `(iv) any other similar mechanisms or
                        combinations thereof, as determined appropriate
                        by the Secretary./

                  / `(D) DESIGNATION AUTHORITY- /

                        / `(i) FDIC- The Secretary may designate the
                        Corporation, on a reimbursable basis, to carry
                        out the loan modification plan developed under
                        this paragraph./

                        / `(ii) CONTRACTING AUTHORITY- If designated
                        under clause (i), the Corporation may use its
                        contracting authority under section 9 of the
                        Federal Deposit Insurance Act./

                  / `(E) CONSULTATION REQUIRED- In developing the loan
                  modification plan under this paragraph, the Secretary
                  shall consult with the Chairperson of the Board of
                  Directors of the Corporation, the Board, and the
                  Secretary of Housing and Urban Development./

                  / `(F) REPORTS TO CONGRESS- The Secretary shall
                  provide to the Committee on Banking, Housing, and
                  Urban Affairs of the Senate and the Committee on
                  Financial Services of the House of Representatives--/

                        / `(i) upon development of the plan required by
                        this paragraph, a report describing such plan; and/

                        / `(ii) a monthly report on the number and types
                        of loan modifications occurring during the
                        reporting period, and the performance of the
                        loan modification plan overall.'./


        /TITLE VIII--FORECLOSURE MITIGATION/


      /TITLE VIII--FORECLOSURE MITIGATION/

            /Sec. 8001. Short Title./

            /Sec. 8002. Definitions./

            /Sec. 8003. Payments to eligible servicers authorized./

            /Sec. 8004. Authorization of appropriations./

            /Sec. 8005. Sunset of authority./


      /SEC. 8001. SHORT TITLE./

      / This title may be cited as the `Help Families Keep Their Homes
      Act of 2009'./


      /SEC. 8002. DEFINITIONS./

      / For purposes of this title--/

            / (1) the term `securitized mortgages' means residential
            mortgages that have been pooled by a securitization vehicle;/

            / (2) the term `securitization vehicle' means a trust,
            corporation, partnership, limited liability entity, special
            purpose entity, or other structure that--/

                  / (A) is the issuer, or is created by the issuer, of
                  mortgage pass-through certificates, participation
                  certificates, mortgage-backed securities, or other
                  similar securities backed by a pool of assets that
                  includes residential mortgage loans;/

                  / (B) holds all of the mortgage loans which are the
                  basis for any vehicle described in subparagraph (A); and/

                  / (C) has not issued securities that are guaranteed by
                  the Federal National Mortgage Association, the Federal
                  Home Loan Mortgage Corporation, or the Government
                  National Mortgage Association;/

            / (3) the term `servicer' means a servicer of securitized
            mortgages;/

            / (4) the term `eligible servicer' means a servicer of
            pooled and securitized residential mortgages;/

            / (5) the term `eligible mortgage' means a residential
            mortgage, the principal amount of which did not exceed the
            conforming loan size limit that was in existence at the time
            of origination for a comparable dwelling, as established by
            the Federal National Mortgage Association;/

            / (6) the term `Secretary' means the Secretary of the Treasury;/

            / (7) the term `effective term of the Act' means the period
            beginning on the effective date of this title and ending on
            December 31, 2011;/

            / (8) the term `incentive fee' means the monthly payment to
            eligible servicers, as determined under section 7003; and/

            / (9) the term `prepayment fee' means the payment to
            eligible servicers, as determined under section 7003(b)./


      /SEC. 8003. PAYMENTS TO ELIGIBLE SERVICERS AUTHORIZED./

      / (a) Authority- The Secretary is authorized to make payments to
      eligible servicers, subject to the terms and conditions
      established under this title./

      / (b) Fees Paid to Eligible Servicers- /

            / (1) IN GENERAL- An eligible servicer may collect
            reasonable incentive fee payments, as established by the
            Secretary, not to exceed $2,000 per loan./

            / (2) CONSULTATION- The fees permitted under this section
            shall be subject to standards established by the Secretary,
            in consultation with the Secretary of Housing and Urban
            Development and the Chairman of the Board of Directors of
            the Federal Deposit Insurance Corporation, which standards
            shall--/

                  / (A) include an evaluation of whether an eligible
                  mortgage is affordable for the remainder of its term; and/

                  / (B) identify a reasonable fee to be paid to the
                  servicer in the event that an eligible mortgage is
                  prepaid./

            / (3) FORM OF PAYMENT- Fees permitted under this section may
            be paid in a lump sum or on a monthly basis. If paid on a
            monthly basis, the fee may only be remitted as long as the
            loan performs./

      / (c) Safe Harbor- Notwithstanding any other provision of law, and
      notwithstanding any investment contract between a servicer and a
      securitization vehicle, a servicer--/

            / (1) owes any duty to maximize the net present value of the
            pooled mortgages in the securitization vehicle to all
            investors and parties having a direct or indirect interest
            in such vehicle, and not to any individual party or group of
            parties; and/

            / (2) shall be deemed to act in the best interests of all
            such investors and parties if the servicer agrees to or
            implements a modification, workout, or other loss mitigation
            plan for a residential mortgage or a class of residential
            mortgages that constitutes a part or all of the pooled
            mortgages in such securitization vehicle, if--/

                  / (A) default on the payment of such mortgage has
                  occurred or is reasonably foreseeable;/

                  / (B) the property securing such mortgage is occupied
                  by the mortgagor of such mortgage or the homeowner; and/

                  / (C) the servicer reasonably and in good faith
                  believes that the anticipated recovery on the
                  principal outstanding obligation of the mortgage under
                  the modification or workout plan exceeds, on a net
                  present value basis, the anticipated recovery on the
                  principal outstanding obligation of the mortgage
                  through foreclosure;/

            / (3) shall not be obligated to repurchase loans from, or
            otherwise make payments to, the securitization vehicle on
            account of a modification, workout, or other loss mitigation
            plan that satisfies the conditions of paragraph (2); and/

            / (4) if it acts in a manner consistent with the duties set
            forth in paragraphs (1) and (2), shall not be liable for
            entering into a modification or workout plan to any person--/

                  / (A) based on ownership by that person of a
                  residential mortgage loan or any interest in a pool of
                  residential mortgage loans, or in securities that
                  distribute payments out of the principal, interest,
                  and other payments in loans in the pool;/

                  / (B) who is obligated pursuant to a derivative
                  instrument to make payments determined in reference to
                  any loan or any interest referred to in subparagraph
                  (A); or/

                  / (C) that insures any loan or any interest referred
                  to in subparagraph (A) under any provision of law or
                  regulation of the United States or any State or
                  political subdivision thereof./

      / (d) Reporting Requirements- /

            / (1) IN GENERAL- Each servicer shall report regularly, not
            less frequently than monthly, to the Secretary on the extent
            and scope of the loss mitigation activities of the mortgage
            owner./

            / (2) CONTENT- Each report required by this subsection shall
            include--/

                  / (A) the number and percent of residential mortgage
                  loans receiving loss mitigation that have become
                  performing loans;/

                  / (B) the number and percent of residential mortgage
                  loans receiving loss mitigation that have proceeded to
                  foreclosure;/

                  / (C) the total number of foreclosures initiated
                  during the reporting period;/

                  / (D) data on loss mitigation activities, including
                  the performance of mitigated loans, disagreggated for
                  each form of loss mitigation, which forms may include--/

                        / (i) a waiver of any late payment charge,
                        penalty interest, or any other fees or charges,
                        or any combination thereof;/

                        / (ii) the establishment of a repayment plan
                        under which the homeowner resumes regularly
                        scheduled payments and pays additional amounts
                        at scheduled intervals to cure the delinquency;/

                        / (iii) forbearance under the loan that provides
                        for a temporary reduction in or cessation of
                        monthly payments, followed by a reamortization
                        of the amounts due under the loan, including
                        arrearage, and a new schedule of repayment amounts;/

                        / (iv) waiver, modification, or variation of any
                        material term of the loan, including short-term,
                        long-term, or life-of-loan modifications that
                        change the interest rate, forgive or forbear
                        with respect to the payment of principal or
                        interest, or extend the final maturity date of
                        the loan;/

                        / (v) short refinancing of the loan consisting
                        of acceptance of payment from or on behalf of
                        the homeowner of an amount less than the amount
                        alleged to be due and owing under the loan,
                        including principal, interest, and fees, in full
                        satisfaction of the obligation under such loan
                        and as part of a refinance transaction in which
                        the property is intended to remain the principal
                        residence of the homeowner;/

                        / (vi) acquisition of the property by the owner
                        or servicer by deed in lieu of foreclosure;/

                        / (vii) short sale of the principal residence
                        that is subject to the lien securing the loan;/

                        / (viii) assumption of the obligation of the
                        homeowner under the loan by a third party;/

                        / (ix) cancellation or postponement of a
                        foreclosure sale to allow the homeowner
                        additional time to sell the property; or/

                        / (x) any other loss mitigation activity not
                        covered; and/

                  / (E) such other information as the Secretary
                  determines to be relevant./

            / (3) PUBLIC AVAILABILITY OF REPORTS- After removing
            information that would compromise the privacy interests of
            mortgagors, the Secretary shall make public the reports
            required by this subsection and summary data./


      /SEC. 8004. AUTHORIZATION OF APPROPRIATIONS./

      / There are authorized to be appropriated to the Secretary, such
      sums as may be necessary to carry out this title./


      /SEC. 8005. SUNSET OF AUTHORITY./

      / The authority of the Secretary to provide assistance under this
      title shall terminate on December 31, 2011./

Attest:

Secretary.

111th CONGRESS

1st Session

*
H. R. 1

*

*
AMENDMENT

*

/END/

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