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111TH CONGRESS 
1ST SESSION 

H. R. 1 
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. 

IN THE HOUSE OF REPRESENTATIVES 

Mr. OBEY (for himself, Mr. RANGEL, Mr. WAXMAN, Mr. GEORGE MILLER of 
California, Mr. OBERSTAR, Mr. GORDON of Tennessee, Mr. FRANK of 
Massachusetts, Ms. VELAZQUEZ, and Mr. TOWNS) introduced the following 
bill; which was referred to the Committee on 

lllllllllllllll 


A BILL 


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. 

1 


Be it enacted by the Senate and House of Representa2 
tives of the United States of America in Congress assembled, 
3 
SECTION 1. SHORT TITLE. 
4 


This Act may be cited as the ‘‘American Recovery 
5 
and Reinvestment Act of 2009’’. 

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2 

1 
SEC. 2. TABLE OF CONTENTS. 

2 


The table of contents for this Act is as follows: 

DIVISION A—APPROPRIATION PROVISIONS 

TITLE I—GENERAL PROVISIONS 
TITLE II—AGRICULTURE, NUTRITION, AND RURAL DEVELOPMENT 
TITLE III—COMMERCE, JUSTICE, AND SCIENCE 
TITLE IV—DEFENSE 
TITLE V—ENERGY AND WATER 
TITLE VI—FINANCIAL SERVICES AND GENERAL GOVERNMENT 
TITLE VII—HOMELAND SECURITY 
TITLE VIII—INTERIOR AND ENVIRONMENT 
TITLE IX—LABOR, HEALTH AND HUMAN SERVICES, AND EDU


CATION 
TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS 
TITLE XI—DEPARTMENT OF STATE 
TITLE XII—TRANSPORTATION, AND HOUSING AND URBAN DEVEL


OPMENT 
TITLE XIII—STATE FISCAL STABILIZATION FUND 


DIVISION B—OTHER PROVISIONS 

TITLE I—TAX PROVISIONS 
TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING 
FAMILIES 
TITLE III—HEALTH INSURANCE ASSISTANCE FOR THE UNEM


PLOYED 
TITLE IV—HEALTH INFORMATION TECHNOLOGY 
TITLE V—MEDICAID PROVISIONS 
TITLE VI—BROADBAND COMMUNICATIONS 
TITLE VII—ENERGY 


3 
SEC. 3. PURPOSES AND PRINCIPLES. 

4 
(a) STATEMENT OF PURPOSES.—The purposes of 

5 
this Act include the following: 

6 
(1) To preserve and create jobs and promote 

7 
economic recovery. 

8 


(2) To assist those most impacted by the reces9 
sion. 

10 


(3) To provide investments needed to increase 
11 


economic efficiency by spurring technological ad


12 


vances in science and health. 

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1 


(4) To invest in transportation, environmental 

2 


protection, and other infrastructure that will provide 

3 


long-term economic benefits. 

4 


(5) To stabilize State and local government 

5 


budgets, in order to minimize and avoid reductions 
6 
in essential services and counterproductive state and 
7 
local tax increases. 
8 
(b) GENERAL PRINCIPLES CONCERNING USE OF 
9 
FUNDS.—The President and the heads of Federal depart10 
ments and agencies shall manage and expend the funds 
11 
made available in this Act so as to achieve the purposes 
12 
specified in subsection (a), including commencing expendi13 
tures and activities as quickly as possible consistent with 
14 
prudent management. 
15 
SEC. 4. REFERENCES. 
16 
Except as expressly provided otherwise, any reference 
17 
to ‘‘this Act’’ contained in any division of this Act shall 
18 
be treated as referring only to the provisions of that divi19 
sion. 
20 
SEC. 5. EMERGENCY DESIGNATIONS. 
21 


(a) IN GENERAL.—Each amount in this Act is des22 
ignated as an emergency requirement and necessary to 
23 
meet emergency needs pursuant to section 204(a) of S. 
24 
Con. Res. 21 (110th Congress) and section 301(b)(2) of 

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1 
S. Con. Res. 70 (110th Congress), the concurrent resolu2 
tions on the budget for fiscal years 2008 and 2009. 
3 


(b) PAY-AS-YOU-GO.—All applicable provisions in 
4 
this Act are designated as an emergency for purposes of 
5 
pay-as-you-go principles. 
6 
DIVISION A—APPROPRIATION 
7 
PROVISIONS 
8 
SEC. 1001. STATEMENT OF APPROPRIATIONS. 
9 
The following sums in this Act are appropriated, out 
10 
of any money in the Treasury not otherwise appropriated, 
11 
for the fiscal year ending September 30, 2009, and for 
12 
other purposes. 
13 
TITLE I—GENERAL PROVISIONS 
14 
Subtitle A—Use of Funds 
15 
SEC. 1101. RELATIONSHIP TO OTHER APPROPRIATIONS. 
16 
Each amount appropriated or made available in this 
17 
Act is in addition to amounts otherwise appropriated for 
18 
the fiscal year involved. Enactment of this Act shall have 
19 
no effect on the availability of amounts under the Con20 
tinuing Appropriations Resolution, 2009 (division A of 
21 
Public Law 110-329). 
22 
SEC. 1102. PREFERENCE FOR QUICK-START ACTIVITIES. 
23 


In using funds made available in this Act for infra24 
structure investment, recipients shall give preference to 
25 
activities that can be started and completed expeditiously, 

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1 
including a goal of using at least 50 percent of the funds 
2 
for activities that can be initiated not later than 120 days 
3 
after the date of the enactment of this Act. Recipients 
4 
shall also use grant funds in a manner that maximizes 
5 
job creation and economic benefit. 
6 
SEC. 1103. REQUIREMENT OF TIMELY AWARD OF GRANTS. 
7 
(a) FORMULA GRANTS.—Formula grants using funds 
8 
made available in this Act shall be awarded not later than 
9 
30 days after the date of the enactment of this Act (or, 
10 
in the case of appropriations not available upon enact11 
ment, not later than 30 days after the appropriation be12 
comes available for obligation), unless expressly provided 
13 
otherwise in this Act. 
14 
(b) COMPETITIVE GRANTS.—Competitive grants 
15 
using funds made available in this Act shall be awarded 
16 
not later than 90 days after the date of the enactment 
17 
of this Act (or, in the case of appropriations not available 
18 
upon enactment, not later than 90 days after the appro19 
priation becomes available for obligation), unless expressly 
20 
provided otherwise in this Act. 
21 


(c) ADDITIONAL PERIOD FOR NEW PROGRAMS.—The 
22 
time limits specified in subsections (a) and (b) may each 
23 
be extended by up to 30 days in the case of grants for 
24 
which funding was not provided in fiscal year 2008. 

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1 
SEC. 1104. USE IT OR LOSE IT REQUIREMENTS FOR GRANT2 
EES. 
3 


(a) DEADLINE FOR BINDING COMMITMENTS.—Each 
4 
recipient of a grant made using amounts made available 
5 
in this Act in any account listed in subsection (c) shall 
6 
enter into contracts or other binding commitments not 
7 
later than 1 year after the date of the enactment of this 
8 
Act (or not later than 9 months after the grant is award9 
ed, if later) to make use of 50 percent of the funds award10 
ed, and shall enter into contracts or other binding commit11 
ments not later than 2 years after the date of the enact12 
ment of this Act (or not later than 21 months after the 
13 
grant is awarded, if later) to make use of the remaining 
14 
funds. In the case of activities to be carried out directly 
15 
by a grant recipient (rather than by contracts, subgrants, 
16 
or other arrangements with third parties), a certification 
17 
by the recipient specifying the amounts, planned timing, 
18 
and purpose of such expenditures shall be deemed a bind19 
ing commitment for purposes of this section. 
20 
(b) REDISTRIBUTION OF UNCOMMITTED FUNDS.— 
21 
The head of the Federal department or agency involved 
22 
shall recover or deobligate any grant funds not committed 
23 
in accordance with subsection (a), and redistribute such 
24 
funds to other recipients eligible under the grant program 
25 
and able to make use of such funds in a timely manner 

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1 
(including binding commitments within 120 days after the 
2 
reallocation). 
3 


(c) APPROPRIATIONS TO WHICH THIS SECTION AP4 
PLIES.—This section shall apply to grants made using 
5 
amounts appropriated in any of the following accounts 
6 
within this Act: 
7 
(1) ‘‘Environmental Protection Agency—State 
8 
and Tribal Assistance Grants’’. 
9 
(2) ‘‘Department of Transportation—Federal 
10 
Aviation Administration—Grants-in-Aid for Air11 
ports’’. 
12 
(3) ‘‘Department of Transportation—Federal 
13 
Railroad Administration—Capital Assistance for 
14 
Intercity Passenger Rail Service’’. 
15 
(4) ‘‘Department of Transportation—Federal 
16 
Transit Administration—Capital Investment 
17 
Grants’’. 
18 
(5) ‘‘Department of Transportation—Federal 
19 
Transit Administration—Fixed Guideway Infra20 
structure Investment’’. 
21 


(6) ‘‘Department of Transportation—Federal 
22 
Transit Administration—Transit Capital Assist23 
ance’’. 

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1 


(7) ‘‘Department of Housing and Urban Devel


2 


opment—Public and Indian Housing—Public Hous


3 


ing Capital Fund’’. 

4 


(8) ‘‘Department of Housing and Urban Devel


5 


opment—Public and Indian Housing—Elderly, Dis6 
abled, and Section 8 Assisted Housing Energy Ret7 
rofit’’. 
8 
(9) ‘‘Department of Housing and Urban Devel9 
opment—Public and Indian Housing—Native Amer10 
ican Housing Block Grants’’. 
11 
(10) ‘‘Department of Housing and Urban De12 
velopment—Community Planning and Develop13 
ment—HOME Investment Partnerships Program’’. 
14 
(11) ‘‘Department of Housing and Urban De15 
velopment—Community Planning and Develop16 
ment—Self-Help and Assisted Homeownership Op17 
portunity Program’’. 
18 
SEC. 1105. PERIOD OF AVAILABILITY. 
19 
(a) IN GENERAL.—All funds appropriated in this Act 
20 
shall remain available for obligation until September 30, 
21 
2010, unless expressly provided otherwise in this Act. 
22 


(b) REOBLIGATION.—Amounts that are not needed 
23 
or cannot be used under title X of this Act for the activity 
24 
for which originally obligated may be deobligated and, not25 
withstanding the limitation on availability specified in sub-

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1 
section (a), reobligated for other activities that have re2 
ceived funding from the same account or appropriation in 
3 
such title. 
4 
SEC. 1106. SET-ASIDE FOR MANAGEMENT AND OVERSIGHT. 
5 


Unless other provision is made in this Act (or in other 
6 
applicable law) for such expenses, up to 0.5 percent of 
7 
each amount appropriated in this Act may be used for the 
8 
expenses of management and oversight of the programs, 
9 
grants, and activities funded by such appropriation, and 
10 
may be transferred by the head of the Federal department 
11 
or agency involved to any other appropriate account within 
12 
the department or agency for that purpose. Funds set 
13 
aside under this section shall remain available for obliga14 
tion until September 30, 2012. 
15 
SEC. 1107. APPROPRIATIONS FOR INSPECTORS GENERAL. 
16 
In addition to funds otherwise made available in this 
17 
Act, there are hereby appropriated the following sums to 
18 
the specified Offices of Inspector General, to remain avail19 
able until September 30, 2013, for oversight and audit of 
20 
programs, grants, and projects funded under this Act: 
21 


(1) ‘‘Department of Agriculture—Office of In


22 


spector General’’, $22,500,000. 

23 


(2) ‘‘Department of Commerce—Office of In


24 


spector General’’, $10,000,000. 

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1 


(3) ‘‘Department of Defense—Office of the In


2 


spector General’’, $15,000,000. 

3 


(4) ‘‘Department of Education—Departmental 

4 


Management—Office of the Inspector General’’, 

5 


$14,000,000. 
6 
(5) ‘‘Department of Energy—Office of Inspec7 
tor General’’, $15,000,000. 
8 
(6) ‘‘Department of Health and Human Serv9 
ices—Office of the Secretary—Office of Inspector 
10 
General’’, $19,000,000. 
11 
(7) ‘‘Department of Homeland Security—Office 
12 
of Inspector General’’, $2,000,000. 
13 
(8) ‘‘Department of Housing and Urban Devel14 
opment—Management and Administration—Office 
15 
of Inspector General’’, $15,000,000. 
16 
(9) ‘‘Department of the Interior—Office of In17 
spector General’’, $15,000,000. 
18 
(10) ‘‘Department of Justice—Office of Inspec19 
tor General’’, $2,000,000. 
20 
(11) ‘‘Department of Labor—Departmental 
21 
Management—Office of Inspector General’’, 
22 


$6,000,000. 

23 


(12) ‘‘Department of Transportation—Office of 

24 


Inspector General’’, $20,000,000. 

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1 


(13) ‘‘Department of Veterans Affairs—Office 

2 


of Inspector General’’, $1,000,000. 

3 


(14) ‘‘Environmental Protection Agency—Office 

4 


of Inspector General’’, $20,000,000. 

5 


(15) ‘‘General Services Administration—Gen6 
eral Activities—Office of Inspector General’’, 
7 
$15,000,000. 
8 
(16) ‘‘National Aeronautics and Space Adminis9 
tration—Office of Inspector General’’, $2,000,000. 
10 
(17) ‘‘National Science Foundation—Office of 
11 
Inspector General’’, $2,000,000. 
12 
(18) ‘‘Small Business Administration—Office of 
13 
Inspector General’’, $10,000,000. 
14 
(19) ‘‘Social Security Administration—Office of 
15 
Inspector General’’, $2,000,000. 
16 
(20) ‘‘Corporation for National and Community 
17 
Service—Office of Inspector General’’, $1,000,000. 
18 
SEC. 1108. APPROPRIATION FOR GOVERNMENT ACCOUNT19 
ABILITY OFFICE. 
20 
There is hereby appropriated as an additional amount 
21 
for ‘‘Government Accountability Office—Salaries and Ex22 
penses’’ $25,000,000, for oversight activities relating to 
23 
this Act. 

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1 
SEC. 1109. PROHIBITED USES. 
2 


None of the funds appropriated or otherwise made 
3 
available in this Act may be used for any casino or other 
4 
gambling establishment, aquarium, zoo, golf course, or 
5 
swimming pool. 
6 
SEC. 1110. USE OF AMERICAN IRON AND STEEL. 
7 
(a) IN GENERAL.—None of the funds appropriated 
8 
or otherwise made available by this Act may be used for 
9 
a project for the construction, alteration, maintenance, or 
10 
repair of a public building or public work unless all of the 
11 
iron and steel used in the project is produced in the United 
12 
States. 
13 
(b) EXCEPTIONS.—Subsection (a) shall not apply in 
14 
any case in which the head of the Federal department or 
15 
agency involved finds that— 
16 
(1) applying subsection (a) would be incon17 
sistent with the public interest; 
18 
(2) iron and steel are not produced in the 
19 
United States in sufficient and reasonably available 
20 
quantities and of a satisfactory quality; or 
21 


(3) inclusion of iron and steel produced in the 

22 


United States will increase the cost of the overall 

23 


project by more than 25 percent. 

24 


(c) WRITTEN JUSTIFICATION FOR WAIVER.—If the 
25 
head of a Federal department or agency determines that 
26 
it is necessary to waive the application of subsection (a) 

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1 
based on a finding under subsection (b), the head of the 
2 
department or agency shall publish in the Federal Register 
3 
a detailed written justification as to why the provision is 
4 
being waived. 
5 


(d) DEFINITIONS.—In this section, the terms ‘‘public 
6 
building’’ and ‘‘public work’’ have the meanings given such 
7 
terms in section 1 of the Buy American Act (41 U.S.C. 
8 
10c) and include airports, bridges, canals, dams, dikes, 
9 
pipelines, railroads, multiline mass transit systems, roads, 
10 
tunnels, harbors, and piers. 
11 
SEC. 1111. WAGE RATE REQUIREMENTS. 
12 
Notwithstanding any other provision of law and in 
13 
a manner consistent with other provisions in this Act, all 
14 
laborers and mechanics employed by contractors and sub15 
contractors on projects funded directly by or assisted in 
16 
whole or in part by and through the Federal Government 
17 
pursuant to this Act shall be paid wages at rates not less 
18 
than those prevailing on projects of a character similar 
19 
in the locality as determined by the Secretary of Labor 
20 
in accordance with subchapter IV of chapter 31 of title 
21 
40, United States Code. With respect to the labor stand22 
ards specified in this section, the Secretary of Labor shall 
23 
have the authority and functions set forth in Reorganiza24 
tion Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 
25 
App.) and section 3145 of title 40, United States Code. 

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1 
SEC. 1112. ADDITIONAL ASSURANCE OF APPROPRIATE USE 
2 


OF FUNDS. 

3 


None of the funds provided by this Act may be made 
4 
available to the State of Illinois, or any agency of the 
5 
State, unless (1) the use of such funds by the State is 
6 
approved in legislation enacted by the State after the date 
7 
of the enactment of this Act, or (2) Rod R. Blagojevich 
8 
no longer holds the office of Governor of the State of Illi9 
nois. The preceding sentence shall not apply to any funds 
10 
provided directly to a unit of local government (1) by a 
11 
Federal department or agency, or (2) by an established 
12 
formula from the State. 
13 
SEC. 1113. PERSISTENT POVERTY COUNTIES. 
14 
(a) ALLOCATION REQUIREMENT.—Of the amount ap15 
propriated in this Act for ‘‘Department of Agriculture— 
16 
Rural Development Programs—Rural Community Ad17 
vancement Program’’, at least 10 percent shall be allo18 
cated for assistance in persistent poverty counties. 
19 
(b) DEFINITION.—For purposes of this section, the 
20 
term ‘‘persistent poverty counties’’ means any county that 
21 
has had 20 percent or more of its population living in pov22 
erty over the past 30 years, as measured by the 1980, 
23 
1990, and 2000 decennial censuses. 

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1 
SEC. 1114. REQUIRED PARTICIPATION IN E-VERIFY PRO2 


GRAM. 

3 


None of the funds made available in this Act may 
4 
be used to enter into a contract with an entity that does 
5 
not participate in the E-verify program described in sec6 
tion 401(b) of the Illegal Immigration Reform and Immi7 
grant Responsibility Act of 1996 (8 U.S.C. 1324a note). 
8 
Subtitle B—Accountability in 
9 
Recovery Act Spending 
10 
PART 1—TRANSPARENCY AND OVERSIGHT 
11 
REQUIREMENTS 
12 
SEC. 1201. TRANSPARENCY REQUIREMENTS. 
13 
(a) REQUIREMENTS FOR FEDERAL AGENCIES.— 
14 
Each Federal agency shall publish on the website Recov15 
ery.gov (as established under section 1226 of this sub16 
title)— 
17 
(1) a plan for using funds made available in 
18 
this Act to the agency; and 
19 
(2) all announcements for grant competitions, 
20 
allocations of formula grants, and awards of com21 


petitive grants using those funds. 

22 


(b) REQUIREMENTS FOR FEDERAL, STATE, AND 
23 
LOCAL GOVERNMENT AGENCIES.— 
24 


(1) INFRASTRUCTURE INVESTMENT FUND


25 


ING.—With respect to funds made available under 

26 


this Act for infrastructure investments to Federal, 

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1 


State, or local government agencies, the following re


2 


quirements apply: 

3 


(A) Each such agency shall notify the pub


4 


lic of funds obligated to particular infrastruc


5 


ture investments by posting the notification on 
6 
the website Recovery.gov. 
7 
(B) The notification required by subpara8 
graph (A) shall include the following: 
9 
(i) A description of the infrastructure 
10 
investment funded. 
11 
(ii) The purpose of the infrastructure 
12 
investment. 
13 
(iii) The total cost of the infrastruc14 
ture investment. 
15 
(iv) The rationale of the agency for 
16 
funding the infrastructure investment with 
17 
funds made available under this Act. 
18 
(v) The name of the person to contact 
19 
at the agency if there are concerns with 
20 
the infrastructure investment and, with re21 


spect to Federal agencies, an email address 

22 


for the Federal official in the agency whom 

23 


the public can contact. 

24 


(vi) In the case of State or local agen


25 


cies, a certification from the Governor, 

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1 


mayor, or other chief executive, as appro


2 


priate, that the infrastructure investment 

3 


has received the full review and vetting re


4 


quired by law and that the chief executive 

5 


accepts responsibility that the infrastruc6 
ture investment is an appropriate use of 
7 
taxpayer dollars. A State or local agency 
8 
may not receive infrastructure investment 
9 
funding from funds made available in this 
10 
Act unless this certification is made. 
11 
(2) OPERATIONAL FUNDING.—With respect to 
12 
funds made available under this Act in the form of 
13 
grants for operational purposes to State or local gov14 
ernment agencies or other organizations, the agency 
15 
or organization shall publish on the website Recov16 
ery.gov a description of the intended use of the 
17 
funds, including the number of jobs sustained or cre18 
ated. 
19 
(c) AVAILABILITY ON INTERNET OF CONTRACTS AND 
20 
GRANTS.—Each contract awarded or grant issued using 
21 
funds made available in this Act shall be posted on the 
22 
Internet and linked to the website Recovery.gov. Propri23 
etary data that is required to be kept confidential under 
24 
applicable Federal or State law or regulation shall be re25 
dacted before posting. 

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1 
SEC. 1202. INSPECTOR GENERAL REVIEWS. 
2 


(a) REVIEWS.—Any inspector general of a Federal 
3 
department or executive agency shall review, as appro4 
priate, any concerns raised by the public about specific 
5 
investments using funds made available in this Act. Any 
6 
findings of an inspector general resulting from such a re7 
view shall be relayed immediately to the head of each de8 
partment and agency. In addition, the findings of such re9 
views, along with any audits conducted by any inspector 
10 
general of funds made available in this Act, shall be posted 
11 
on the Internet and linked to the website Recovery.gov. 
12 
(b) EXAMINATION OF RECORDS.—The Inspector 
13 
General of the agency concerned may examine any records 
14 
related to obligations of funds made available in this Act. 
15 
SEC. 1203. GOVERNMENT ACCOUNTABILITY OFFICE RE16 
VIEWS AND REPORTS. 
17 
(a) REVIEWS AND REPORTS.—The Comptroller Gen18 
eral of the United States shall conduct bimonthly reviews 
19 
and prepare reports on such reviews on the use by selected 
20 
States and localities of funds made available in this Act. 
21 
Such reports, along with any audits conducted by the 
22 
Comptroller General of such funds, shall be posted on the 
23 
Internet and linked to the website Recovery.gov. 
24 
(b) EXAMINATION OF RECORDS.—The Comptroller 
25 
General may examine any records related to obligations 
26 
of funds made available in this Act. 

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1 
SEC. 1204. COUNCIL OF ECONOMIC ADVISERS REPORTS. 
2 


The Chairman of the Council of Economic Advisers, 
3 
in consultation with the Director of the Office of Manage4 
ment and Budget and the Secretary of the Treasury, shall 
5 
submit quarterly reports to Congress detailing the esti6 
mated impact of programs under this Act on employment, 
7 
economic growth, and other key economic indicators. 
8 
SEC. 1205. SPECIAL CONTRACTING PROVISIONS. 
9 
The Federal Acquisition Regulation shall apply to 
10 
contracts awarded with funds made available in this Act. 
11 
To the maximum extent possible, such contracts shall be 
12 
awarded as fixed-price contracts through the use of com13 
petitive procedures. Existing contracts so awarded may be 
14 
utilized in order to obligate such funds expeditiously. Any 
15 
contract awarded with such funds that is not fixed-price 
16 
and not awarded using competitive procedures shall be 
17 
posted in a special section of the website Recovery.gov. 
18 
PART 2—ACCOUNTABILITY AND TRANSPARENCY 
19 
BOARD 
20 
SEC. 1221. ESTABLISHMENT OF THE ACCOUNTABILITY AND 
21 


TRANSPARENCY BOARD. 

22 


There is established a board to be known as the ‘‘Re23 
covery Act Accountability and Transparency Board’’ 
24 
(hereafter in this subtitle referred to as the ‘‘Board’’) to 
25 
coordinate and conduct oversight of Federal spending 
26 
under this Act to prevent waste, fraud, and abuse. 

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1 
SEC. 1222. COMPOSITION OF BOARD. 
2 


(a) MEMBERSHIP.—The Board shall be composed of 
3 
seven members as follows: 
4 


(1) The Chief Performance Officer of the Presi


5 


dent, who shall chair the Board. 
6 
(2) Six members designated by the President 
7 
from the inspectors general and deputy secretaries 
8 
of the Departments of Education, Energy, Health 
9 
and Human Services, Transportation, and other 
10 
Federal departments and agencies to which funds 
11 
are made available in this Act. 
12 
(b) TERMS.—Each member of the Board shall serve 
13 
for a term to be determined by the President. 
14 
SEC. 1223. FUNCTIONS OF THE BOARD. 
15 
(a) OVERSIGHT.—The Board shall coordinate and 
16 
conduct oversight of spending under this Act to prevent 
17 
waste, fraud, and abuse. In addition to responsibilities set 
18 
forth in this subtitle, the responsibilities of the Board shall 
19 
include the following: 
20 
(1) Ensuring that the reporting of information 
21 


regarding contract and grants under this Act meets 

22 


applicable standards and specifies the purpose of the 

23 


contract or grant and measures of performance. 

24 


(2) Verifying that competition requirements ap


25 


plicable to contracts and grants under this Act and 

26 


other applicable Federal law have been satisfied. 

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21 

1 


(3) Investigating spending under this Act to de


2 


termine whether wasteful spending, poor contract or 

3 


grant management, or other abuses are occurring. 

4 


(4) Reviewing whether there are sufficient 

5 


qualified acquisition and grant personnel overseeing 
6 
spending under this Act. 
7 
(5) Reviewing whether acquisition and grant 
8 
personnel receive adequate training and whether 
9 
there are appropriate mechanisms for interagency 
10 
collaboration. 
11 
(b) REPORTS.— 
12 
(1) FLASH AND OTHER REPORTS.—The Board 
13 
shall submit to Congress reports, to be known as 
14 
‘‘flash reports’’, on potential management and fund15 
ing problems that require immediate attention. The 
16 
Board also shall submit to Congress such other re17 
ports as the Board considers appropriate on the use 
18 
and benefits of funds made available in this Act. 
19 
(2) QUARTERLY.—The Board shall submit to 
20 
the President and Congress quarterly reports sum21 


marizing its findings and the findings of agency in


22 


spectors general and may issue additional reports as 

23 


appropriate. 

24 


(3) ANNUALLY.—On an annual basis, the 

25 


Board shall prepare a consolidated report on the use 

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22 

1 


of funds under this Act. All reports shall be publicly 

2 


available and shall be posted on the Internet website 

3 


Recovery.gov, except that portions of reports may be 

4 


redacted if the portions would disclose information 

5 


that is protected from public disclosure under sec6 
tion 552 of title 5, United States Code (popularly 
7 
known as the Freedom of Information Act). 
8 
(c) RECOMMENDATIONS TO AGENCIES.—The Board 
9 
shall make recommendations to Federal agencies on meas10 
ures to prevent waste, fraud, and abuse. A Federal agency 
11 
shall, within 30 days after receipt of any such rec12 
ommendation, submit to the Board, the President, and the 
13 
congressional committees of jurisdiction a report on 
14 
whether the agency agrees or disagrees with the rec15 
ommendations and what steps, if any, the agency plans 
16 
to take to implement the recommendations. 
17 
SEC. 1224. POWERS OF THE BOARD. 
18 
(a) COORDINATION OF AUDITS AND INVESTIGATIONS 
19 
BY AGENCY INSPECTORS GENERAL.—The Board shall co20 
ordinate the audits and investigations of spending under 
21 
this Act by agency inspectors general. 
22 


(b) CONDUCT OF REVIEWS BY BOARD.—The Board 
23 
may conduct reviews of spending under this Act and may 
24 
collaborate on such reviews with any inspector general. 

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23 

1 


(c) MEETINGS.—The Board may, for the purpose of 
2 
carrying out its duties under this Act, hold public meet3 
ings, sit and act at times and places, and receive informa4 
tion as the Board considers appropriate. The Board shall 
5 
meet at least once a month. 
6 
(d) OBTAINING OFFICIAL DATA.—The Board may 
7 
secure directly from any department or agency of the 
8 
United States information necessary to enable it to carry 
9 
out its duties under this Act. Upon request of the Chair10 
man of the Board, the head of that department or agency 
11 
shall furnish that information to the Board. 
12 
(e) CONTRACTS.—The Board may enter into con13 
tracts to enable the Board to discharge its duties under 
14 
this Act. 
15 
SEC. 1225. STAFFING. 
16 
(a) EXECUTIVE DIRECTOR.—The Chairman of the 
17 
Board may appoint and fix the compensation of an execu18 
tive director and other personnel as may be required to 
19 
carry out the functions of the Board. The Director shall 
20 
be paid at the rate of basic pay for level IV of the Execu21 
tive Schedule. 
22 


(b) STAFF OF FEDERAL AGENCIES.—Upon request 
23 
of the Board, the head of any Federal department or agen24 
cy may detail any Federal official or employee, including 
25 
officials and employees of offices of inspector general, to 

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24 
1 
the Board without reimbursement from the Board, and 
2 
such detailed staff shall retain the rights, status, and 
3 
privileges of his or her regular employment without inter4 
ruption. 
5 


(c) OFFICE SPACE.—Office space shall be provided 
6 
to the Board within the Executive Office of the President. 
7 
SEC. 1226. RECOVERY.GOV. 
8 
(a) REQUIREMENT TO ESTABLISH WEBSITE.—The 
9 
Board shall establish and maintain a website on the Inter10 
net to be named Recovery.gov, to foster greater account11 
ability and transparency in the use of funds made avail12 
able in this Act. 
13 
(b) PURPOSE.—Recovery.gov shall be a portal or 
14 
gateway to key information related to this Act and provide 
15 
a window to other Government websites with related infor16 
mation. 
17 
(c) MATTERS COVERED.—In establishing the website 
18 
Recovery.gov, the Board shall ensure the following: 
19 
(1) The website shall provide materials explain20 
ing what this Act means for citizens. The materials 
21 


shall be easy to understand and regularly updated. 

22 


(2) The website shall provide accountability in


23 


formation, including a database of findings from au


24 


dits, inspectors general, and the Government Ac


25 


countability Office. 

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25 

1 


(3) The website shall provide data on relevant 

2 


economic, financial, grant, and contract information 

3 


in user-friendly visual presentations to enhance pub


4 


lic awareness of the use funds made available in this 
5 
Act. 
6 
(4) The website shall provide detailed data on 
7 
contracts awarded by the Government for purposes 
8 
of carrying out this Act, including information about 
9 
the competitiveness of the contracting process, noti10 
fication of solicitations for contracts to be awarded, 
11 
and information about the process that was used for 
12 
the award of contracts. 
13 
(5) The website shall include printable reports 
14 
on funds made available in this Act obligated by 
15 
month to each State and congressional district. 
16 
(6) The website shall provide a means for the 
17 
public to give feedback on the performance of con18 
tracts awarded for purposes of carrying out this Act. 
19 
(7) The website shall be enhanced and updated 
20 
as necessary to carry out the purposes of this sub21 
title. 
22 
SEC. 1227. PRESERVATION OF THE INDEPENDENCE OF IN23 


SPECTORS GENERAL. 

24 


Inspectors general shall retain independent authority 
25 
to determine whether to conduct an audit or investigation 

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26 
1 
of spending under this Act. If the Board requests that 
2 
an inspector general conduct or refrain from conducting 
3 
an audit or investigation and the inspector general rejects 
4 
the request in whole or in part, the inspector general shall, 
5 
within 30 days after receipt of the request, submit to the 
6 
Board, the agency head, and the congressional committees 
7 
of jurisdiction a report explaining why the inspector gen8 
eral has rejected the request in whole or in part. 
9 
SEC. 1228. COORDINATION WITH THE COMPTROLLER GEN10 
ERAL AND STATE AUDITORS. 
11 
The Board shall coordinate its oversight activities 
12 
with the Comptroller General of the United States and 
13 
State auditor generals. 
14 
SEC. 1229. INDEPENDENT ADVISORY PANEL. 
15 
(a) ESTABLISHMENT.—There is established a panel 
16 
to be known as the ‘‘Independent Advisory Panel’’ to ad17 
vise the Board. 
18 
(b) MEMBERSHIP.—The Panel shall be composed of 
19 
five members appointed by the President from among indi20 
viduals with expertise in economics, public finance, con21 
tracting, accounting, or other relevant fields. 
22 


(c) FUNCTIONS.—The Panel shall make rec23 
ommendations to the Board on actions the Board could 
24 
take to prevent waste, fraud, and abuse in Federal spend25 
ing under this Act. 

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27 

1 


(d) TRAVEL EXPENSES.—Each member of the Panel 
2 
shall receive travel expenses, including per diem in lieu 
3 
of subsistence, in accordance with applicable provisions 
4 
under subchapter I of chapter 57 of title 5, United States 
5 
Code. 
6 
SEC. 1230. FUNDING. 
7 
There is hereby appropriated to the Board 
8 
$14,000,000 to carry out this subtitle. 
9 
SEC. 1231. BOARD TERMINATION. 
10 
The Board shall terminate 12 months after 90 per11 
cent of the funds made available under this Act have been 
12 
expended, as determined by the Director of the Office of 
13 
Management and Budget. 
14 
PART 3—ADDITIONAL ACCOUNTABILITY AND 
15 
TRANSPARENCY PROVISIONS 
16 
SEC. 1241. LIMITATION ON THE LENGTH OF CERTAIN NON17 
COMPETITIVE CONTRACTS. 
18 
No contract entered into using funds made available 
19 
in this Act pursuant to the authority provided in section 
20 
303(c)(2) of the Federal Property and Administrative 
21 
Services Act of 1949 (41 U.S.C. 253(c)(2)) that is for an 
22 
amount greater than the simplified acquisition threshold 
23 
(as defined in section 4(11) of the Office of Federal Pro24 
curement Policy Act (41 U.S.C. (4)(11))— 
25 


(1) may exceed the time necessary— 

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28 

1 


(A) to meet the unusual and compelling re


2 


quirements of the work to be performed under 

3 


the contract; and 

4 


(B) for the executive agency to enter into 

5 


another contract for the required goods or serv6 
ices through the use of competitive procedures; 
7 
and 
8 
(2) may exceed one year unless the head of the 
9 
executive agency entering into such contract deter10 
mines that exceptional circumstances apply. 
11 
SEC. 1242. ACCESS OF GOVERNMENT ACCOUNTABILITY OF12 
FICE AND OFFICES OF INSPECTOR GENERAL 
13 
TO CERTAIN EMPLOYEES. 
14 
(a) ACCESS.—Each contract awarded using funds 
15 
made available in this Act shall provide that the Comp16 
troller General and his representatives, and any represent17 
atives of an appropriate inspector general appointed under 
18 
section 3 or 8G of the Inspector General Act of 1978 (5 
19 
U.S.C. App.), are authorized— 
20 
(1) to examine any records of the contractor or 
21 


any of its subcontractors, or any State or local agen


22 


cy administering such contract, that directly pertain 

23 


to, and involve transactions relating to, the contract 

24 


or subcontract; and 

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29 

1 


(2) to interview any current employee regarding 

2 


such transactions. 

3 


(b) RELATIONSHIP TO EXISTING AUTHORITY.— 
4 
Nothing in this section shall be interpreted to limit or re5 
strict in any way any existing authority of the Comptroller 
6 
General or an Inspector General. 
7 
SEC. 1243. PROTECTING STATE AND LOCAL GOVERNMENT 
8 
AND CONTRACTOR WHISTLEBLOWERS. 
9 
(a) PROHIBITION OF REPRISALS.—An employee of 
10 
any non-Federal employer receiving funds made available 
11 
in this Act may not be discharged, demoted, or otherwise 
12 
discriminated against as a reprisal for disclosing to the 
13 
Board, an inspector general, the Comptroller General, a 
14 
member of Congress, or a Federal agency head, or their 
15 
representatives, information that the employee reasonably 
16 
believes is evidence of— 
17 
(1) gross mismanagement of an executive agen18 
cy contract or grant; 
19 
(2) a gross waste of executive agency funds; 
20 
(3) a substantial and specific danger to public 
21 


health or safety; or 

22 


(4) a violation of law related to an executive 

23 


agency contract (including the competition for or ne


24 


gotiation of a contract) or grant awarded or issued 

25 


to carry out this Act. 

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30 

1 


(b) INVESTIGATION OF COMPLAINTS.— 

2 


(1) A person who believes that the person has 

3 


been subjected to a reprisal prohibited by subsection 

4 


(a) may submit a complaint to the inspector general 

5 


of the executive agency that awarded the contract or 
6 
issued the grant. Unless the inspector general deter7 
mines that the complaint is frivolous, the inspector 
8 
general shall investigate the complaint and, upon 
9 
completion of such investigation, submit a report of 
10 
the findings of the investigation to the person, the 
11 
person’s employer, the head of the Federal agency 
12 
that awarded the contract or issued the grant, and 
13 
the Board. 
14 
(2)(A) Except as provided under subparagraph 
15 
(B), the inspector general shall make a determina16 
tion that a complaint is frivolous or submit a report 
17 
under paragraph (1) within 180 days after receiving 
18 
the complaint. 
19 
(B) If the inspector general is unable to com20 
plete an investigation in time to submit a report 
21 


within the 180-day period specified in subparagraph 

22 


(A) and the person submitting the complaint agrees 

23 


to an extension of time, the inspector general shall 

24 


submit a report under paragraph (1) within such ad


25 


ditional period of time as shall be agreed upon be


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31 

1 


tween the inspector general and the person submit


2 


ting the complaint. 

3 


(c) REMEDY AND ENFORCEMENT AUTHORITY.— 

4 


(1) Not later than 30 days after receiving an 

5 


inspector general report pursuant to subsection (b), 
6 
the head of the agency concerned shall determine 
7 
whether there is sufficient basis to conclude that the 
8 
non-Federal employer has subjected the complainant 
9 
to a reprisal prohibited by subsection (a) and shall 
10 
either issue an order denying relief or shall take one 
11 
or more of the following actions: 
12 
(A) Order the employer to take affirmative 
13 
action to abate the reprisal. 
14 
(B) Order the employer to reinstate the 
15 
person to the position that the person held be16 
fore the reprisal, together with the compensa17 
tion (including back pay), employment benefits, 
18 
and other terms and conditions of employment 
19 
that would apply to the person in that position 
20 
if the reprisal had not been taken. 
21 


(C) Order the employer to pay the com


22 


plainant an amount equal to the aggregate 

23 


amount of all costs and expenses (including at


24 


torneys’ fees and expert witnesses’ fees) that 

25 


were reasonably incurred by the complainant 

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32 

1 


for, or in connection with, bringing the com


2 


plaint regarding the reprisal, as determined by 

3 


the head of the agency. 

4 


(2) If the head of an executive agency issues an 

5 


order denying relief under paragraph (1) or has not 
6 
issued an order within 210 days after the submission 
7 
of a complaint under subsection (b), or in the case 
8 
of an extension of time under paragraph (b)(2)(B), 
9 
not later than 30 days after the expiration of the ex10 
tension of time, and there is no showing that such 
11 
delay is due to the bad faith of the complainant, the 
12 
complainant shall be deemed to have exhausted all 
13 
administrative remedies with respect to the com14 
plaint, and the complainant may bring a de novo ac15 
tion at law or equity against the employer to seek 
16 
compensatory damages and other relief available 
17 
under this section in the appropriate district court 
18 
of the United States, which shall have jurisdiction 
19 
over such an action without regard to the amount in 
20 
controversy. Such an action shall, at the request of 
21 


either party to the action, be tried by the court with 
22 
a jury. 
23 


(3) An inspector general determination and an 

24 


agency head order denying relief under paragraph 

25 


(2) shall be admissible in evidence in any de novo 

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33 

1 


action at law or equity brought pursuant to this sub


2 


section. 

3 


(4) Whenever a person fails to comply with an 

4 


order issued under paragraph (1), the head of the 

5 


agency shall file an action for enforcement of such 
6 
order in the United States district court for a dis7 
trict in which the reprisal was found to have oc8 
curred. In any action brought under this paragraph, 
9 
the court may grant appropriate relief, including in10 
junctive relief and compensatory and exemplary 
11 
damages. 
12 
(5) Any person adversely affected or aggrieved 
13 
by an order issued under paragraph (1) may obtain 
14 
review of the order’s conformance with this sub15 
section, and any regulations issued to carry out this 
16 
section, in the United States court of appeals for a 
17 
circuit in which the reprisal is alleged in the order 
18 
to have occurred. No petition seeking such review 
19 
may be filed more than 60 days after issuance of the 
20 
order by the head of the agency. Review shall con21 


form to chapter 7 of title 5. 

22 


(d) CONSTRUCTION.—Nothing in this section may be 
23 
construed to authorize the discharge of, demotion of, or 
24 
discrimination against an employee for a disclosure other 
25 
than a disclosure protected by subsection (a) or to modify 

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34 
1 
or derogate from a right or remedy otherwise available to 
2 
the employee. 
3 


(e) DEFINITIONS.— 

4 


(1) NON-FEDERAL EMPLOYER RECEIVING 

5 


FUNDS UNDER THIS ACT.—The term ‘‘non-Federal 
6 
employer receiving funds made available in this Act’’ 
7 
means— 
8 
(A) with respect to a Federal contract 
9 
awarded or Federal grant issued to carry out 
10 
this Act, the contractor or grantee, as the case 
11 
may be, if the contractor or grantee is an em12 
ployer; or 
13 
(B) a State or local government, if the 
14 
State or local government has received funds 
15 
made available in this Act. 
16 
(2) EXECUTIVE AGENCY.—The term ‘‘executive 
17 
agency’’ has the meaning given that term in section 
18 
4 of the Office of Federal Procurement Policy Act 
19 
(41 U.S.C. 403). 
20 
(3) STATE OR LOCAL GOVERNMENT.—The term 
21 


‘‘State or local government’’ means— 

22 


(A) the government of each of the several 

23 


States, the District of Columbia, the Common


24 


wealth of Puerto Rico, Guam, American Samoa, 

25 


the Virgin Islands, the Northern Mariana Is-

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35 

1 


lands, or any other territory or possession of 

2 


the United States; or 

3 


(B) the government of any political sub


4 


division of a government listed in subparagraph 
5 
(A). 
6 
TITLE II—AGRICULTURE, NUTRI7 
TION, AND RURAL DEVELOP8 
MENT 
9 
DEPARTMENT OF AGRICULTURE 
10 
AGRICULTURE BUILDINGS AND FACILITIES AND RENTAL 
11 
PAYMENTS 
12 
For an additional amount for ‘‘Agriculture Buildings 
13 
and Facilities and Rental Payments’’, $44,000,000, for 
14 
necessary construction, repair, and improvement activities: 
15 
Provided, That section 1106 of this Act shall not apply 
16 
to this appropriation. 
17 
AGRICULTURAL RESEARCH SERVICE 
18 
BUILDINGS AND FACILITIES 
19 
For an additional amount for ‘‘Buildings and Facili20 
ties’’, $209,000,000, for work on deferred maintenance at 
21 
Agricultural Research Service facilities: Provided, That 
22 
priority in the use of such funds shall be given to critical 
23 
deferred maintenance, to projects that can be completed, 
24 
and to activities that can commence promptly following 
25 
enactment of this Act. 

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36 

1 


FARM SERVICE AGENCY 

2 


SALARIES AND EXPENSES 

3 


For an additional amount for ‘‘Salaries and Ex4 
penses,’’ $245,000,000, for the purpose of maintaining 
5 
and modernizing the information technology system: Pro6 
vided, That section 1106 of this Act shall not apply to 
7 
this appropriation. 
8 
NATURAL RESOURCES CONSERVATION SERVICE 
9 
WATERSHED AND FLOOD PREVENTION OPERATIONS 
10 
For an additional amount for ‘‘Watershed and Flood 
11 
Prevention Operations’’, $350,000,000, of which 
12 
$175,000,000 is for necessary expenses to purchase and 
13 
restore floodplain easements as authorized by section 403 
14 
of the Agricultural Credit Act of 1978 (16 U.S.C. 2203) 
15 
(except that no more than $50,000,000 of the amount pro16 
vided for the purchase of floodplain easements may be ob17 
ligated for projects in any one State): Provided, That sec18 
tion 1106 of this Act shall not apply to this appropriation: 
19 
Provided further, That priority in the use of such funds 
20 
shall be given to projects that can be fully funded and 
21 
completed with the funds appropriated in this Act, and 
22 
to activities that can commence promptly following enact23 
ment of this Act. 

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37 

1 


WATERSHED REHABILITATION PROGRAM 

2 


For an additional amount for ‘‘Watershed Rehabilita3 
tion Program’’, $50,000,000, for necessary expenses to 
4 
carry out rehabilitation of structural measures: Provided, 
5 
That section 1106 of this Act shall not apply to this ap6 
propriation: Provided further, That priority in the use of 
7 
such funds shall be given to projects that can be fully 
8 
funded and completed with the funds appropriated in this 
9 
Act, and to activities that can commence promptly fol10 
lowing enactment of this Act. 
11 
RURAL DEVELOPMENT PROGRAMS 
12 
RURAL COMMUNITY ADVANCEMENT PROGRAM 
13 
(INCLUDING TRANSFERS OF FUNDS) 
14 
For an additional amount for gross obligations for 
15 
the principal amount of direct and guaranteed loans as 
16 
authorized by sections 306 and 310B and described in sec17 
tions 381E(d)(1), 381E(d)(2), and 381E(d)(3) of the 
18 
Consolidated Farm and Rural Development Act, to be 
19 
available from the rural community advancement pro20 
gram, as follows: $5,838,000,000, of which 
21 
$1,102,000,000 is for rural community facilities direct 
22 
loans, of which $2,000,000,000 is for business and indus23 
try guaranteed loans, and of which $2,736,000,000 is for 
24 
rural water and waste disposal direct loans. 

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38 


1 


For an additional amount for the cost of direct loans, 
2 
loan guarantees, and grants, including the cost of modi3 
fying loans, as defined in section 502 of the Congressional 
4 
Budget Act of 1974, as follows: $1,800,000,000, of which 
5 
$63,000,000 is for rural community facilities direct loans, 
6 
of which $137,000,000 is for rural community facilities 
7 
grants authorized under section 306(a) of the Consoli8 
dated Farm and Rural Development Act, of which 
9 
$87,000,000 is for business and industry guaranteed 
10 
loans, of which $13,000,000 is for rural business enter11 
prise grants authorized under section 310B of the Consoli12 
dated Farm and Rural Development Act, of which 
13 
$400,000,000 is for rural water and waste disposal direct 
14 
loans, and of which $1,100,000,000 is for rural water and 
15 
waste disposal grants authorized under section 306(a): 
16 
Provided, That the amounts appropriated under this head17 
ing shall be transferred to, and merged with, the appro18 
priation for ‘‘Rural Housing Service, Rural Community 
19 
Facilities Program Account’’, the appropriation for 
20 
‘‘Rural Business-Cooperative Service, Rural Business Pro21 
gram Account’’, and the appropriation for ‘‘Rural Utilities 
22 
Service, Rural Water and Waste Disposal Program Ac23 
count’’: Provided further, That priority for awarding such 
24 
funds shall be given to project applications that dem25 
onstrate that, if the application is approved, all project 

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39 


1 
elements will be fully funded: Provided further, That pri2 
ority for awarding such funds shall be given to project ap3 
plications for activities that can be completed if the re4 
quested funds are provided: Provided further, That priority 
5 
for awarding such funds shall be given to activities that 
6 
can commence promptly following enactment of this Act. 
7 
In addition to other available funds, the Secretary of 
8 
Agriculture may use not more than 3 percent of the funds 
9 
made available under this account for administrative costs 
10 
to carry out loans, loan guarantees, and grants funded 
11 
under this account, which shall be transferred and merged 
12 
with the appropriation for ‘‘Rural Development, Salaries 
13 
and Expenses’’ and shall remain available until September 
14 
30, 2012: Provided, That the authority provided in this 
15 
paragraph shall apply to appropriations under this head16 
ing in lieu of the provisions of section 1106 of this Act. 
17 
Funds appropriated by this Act to the Rural Commu18 
nity Advancement Program for rural community facilities, 
19 
rural business, and rural water and waste disposal direct 
20 
loans, loan guarantees and grants may be transferred 
21 
among these programs: Provided, That the Committees on 
22 
Appropriations of the House of Representatives and the 
23 
Senate shall be notified at least 15 days in advance of 
24 
any transfer. 

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40 

1 


RURAL HOUSING SERVICE 

2 


RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT 

3 


(INCLUDING TRANSFERS OF FUNDS) 

4 


For an additional amount of gross obligations for the 
5 
principal amount of direct and guaranteed loans as au6 
thorized by title V of the Housing Act of 1949, to be avail7 
able from funds in the rural housing insurance fund, as 
8 
follows: $22,129,000,000 for loans to section 502 bor9 
rowers, of which $4,018,000,000 shall be for direct loans, 
10 
and of which $18,111,000,000 shall be for unsubsidized 
11 
guaranteed loans. 
12 
For an additional amount for the cost of direct and 
13 
guaranteed loans, including the cost of modifying loans, 
14 
as defined in section 502 of the Congressional Budget Act 
15 
of 1974, as follows: section 502 loans, $500,000,000, of 
16 
which $270,000,000 shall be for direct loans, and of which 
17 
$230,000,000 shall be for unsubsidized guaranteed loans. 
18 
In addition to other available funds, the Secretary of 
19 
Agriculture may use not more than 3 percent of the funds 
20 
made available under this account for administrative costs 
21 
to carry out loans and loan guarantees funded under this 
22 
account, of which $1,750,000 will be committed to agency 
23 
projects associated with maintaining the compliance, safe24 
ty, and soundness of the portfolio of loans guaranteed 
25 
through the section 502 guaranteed loan program: Pro-

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41 
1 
vided, These funds shall be transferred and merged with 
2 
the appropriation for ‘‘Rural Development, Salaries and 
3 
Expenses’’: Provided further, That the authority provided 
4 
in this paragraph shall apply to appropriations under this 
5 
heading in lieu of the provisions of section 1106 of this 
6 
Act. 
7 
Funds appropriated by this Act to the Rural Housing 
8 
Insurance Fund Program account for section 502 direct 
9 
loans and unsubsidized guaranteed loans may be trans10 
ferred between these programs: Provided, That the Com11 
mittees on Appropriations of the House of Representatives 
12 
and the Senate shall be notified at least 15 days in ad13 
vance of any transfer. 
14 
RURAL UTILITIES SERVICE 
15 
DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND 
16 
PROGRAM 
17 
(INCLUDING TRANSFERS OF FUNDS) 
18 
For an additional amount for the cost of broadband 
19 
loans and loan guarantees, as authorized by the Rural 
20 
Electrification Act of 1936 (7 U.S.C. 901 et seq.) and for 
21 
grants, $2,825,000,000: Provided, That the cost of direct 
22 
and guaranteed loans shall be as defined in section 502 
23 
of the Congressional Budget Act of 1974: Provided fur24 
ther, That, notwithstanding title VI of the Rural Elec25 
trification Act of 1936, this amount is available for grants, 

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42 


1 
loans and loan guarantees for open access broadband in2 
frastructure in any area of the United States: Provided 
3 
further, That at least 75 percent of the area to be served 
4 
by a project receiving funds from such grants, loans or 
5 
loan guarantees shall be in a rural area without sufficient 
6 
access to high speed broadband service to facilitate rural 
7 
economic development, as determined by the Secretary of 
8 
Agriculture: Provided further, That priority for awarding 
9 
funds made available under this paragraph shall be given 
10 
to projects that provide service to the most rural residents 
11 
that do not have access to broadband service: Provided fur12 
ther, That priority shall be given for project applications 
13 
from borrowers or former borrowers under title II of the 
14 
Rural Electrification Act of 1936 and for project applica15 
tions that include such borrowers or former borrowers: 
16 
Provided further, That notwithstanding section 1103 of 
17 
this Act, 50 percent of the grants, loans, and loan guaran18 
tees made available under this heading shall be awarded 
19 
not later than September 30, 2009: Provided further, That 
20 
priority for awarding such funds shall be given to project 
21 
applications that demonstrate that, if the application is 
22 
approved, all project elements will be fully funded: Pro23 
vided further, That priority for awarding such funds shall 
24 
be given to project applications for activities that can be 
25 
completed if the requested funds are provided: Provided 

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43 
1 
further, That priority for awarding such funds shall be 
2 
given to activities that can commence promptly following 
3 
enactment of this Act: Provided further, That no area of 
4 
a project funded with amounts made available under this 
5 
paragraph may receive funding to provide broadband serv6 
ice under the Broadband Deployment Grant Program: 
7 
Provided further, That the Secretary shall submit a report 
8 
on planned spending and actual obligations describing the 
9 
use of these funds not later than 90 days after the date 
10 
of enactment of this Act, and quarterly thereafter until 
11 
all funds are obligated, to the Committees on Appropria12 
tions of the House of Representatives and the Senate. 
13 
In addition to other available funds, the Secretary 
14 
may use not more than 3 percent of the funds made avail15 
able under this account for administrative costs to carry 
16 
out loans, loan guarantees, and grants funded under this 
17 
account, which shall be transferred and merged with the 
18 
appropriation for ‘‘Rural Development, Salaries and Ex19 
penses’’ and shall remain available until September 30, 
20 
2012: Provided, That the authority provided in this para21 
graph shall apply to appropriations under this heading in 
22 
lieu of the provisions of section 1106 of this Act. 

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44 

1 


FOOD AND NUTRITION SERVICE 

2 


SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR 

3 


WOMEN, INFANTS, AND CHILDREN (WIC) 

4 


For an additional amount for the special supple5 
mental nutrition program as authorized by section 17 of 
6 
the Child Nutrition Act of 1966 (42 U.S.C. 1786), 
7 
$100,000,000, for the purposes specified in section 
8 
17(h)(10)(B)(ii) for the Secretary of Agriculture to pro9 
vide assistance to State agencies to implement new man10 
agement information systems or improve existing manage11 
ment information systems for the program. 
12 
EMERGENCY FOOD ASSISTANCE PROGRAM 
13 
For an additional amount for the emergency food as14 
sistance program as authorized by section 27(a) of the 
15 
Food and Nutrition Act of 2008 (7 U.S.C. 2036(a)) and 
16 
section 204(a)(1) of the Emergency Food Assistance Act 
17 
of 1983 (7 U.S.C. 7508(a)(1)), $150,000,000, of which 
18 
$100,000,000 is for the purchase of commodities and of 
19 
which $50,000,000 is for costs associated with the dis20 
tribution of commodities. 
21 


GENERAL PROVISIONS, THIS TITLE 

22 
SEC. 2001. TEMPORARY INCREASE IN BENEFITS UNDER 
23 


THE SUPPLEMENTAL NUTRITION ASSIST


24 


ANCE PROGRAM. 

25 


(a) MAXIMUM BENEFIT INCREASE.— 

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45 


1 


(1) IN GENERAL.—Beginning the first month 

2 


that begins not less than 25 days after the date of 

3 


enactment of this Act, the value of benefits deter


4 


mined under section 8(a) of the Food and Nutrition 

5 


Act of 2008 and consolidated block grants for Puer6 
to Rico and American Samoa determined under sec7 
tion 19(a) of such Act shall be calculated using 
8 
113.6 percent of the June 2008 value of the thrifty 
9 
food plan as specified under section 3(o) of such 
10 
Act. 
11 
(2) TERMINATION.— 
12 
(A) The authority provided by this sub13 
section shall terminate after September 30, 
14 
2009. 
15 
(B) Notwithstanding subparagraph (A), 
16 
the Secretary of Agriculture may not reduce the 
17 
value of the maximum allotment below the level 
18 
in effect for fiscal year 2009 as a result of 
19 
paragraph (1). 
20 
(b) REQUIREMENTS FOR THE SECRETARY.—In car21 
rying out this section, the Secretary shall— 
22 


(1) consider the benefit increases described in 

23 


subsection (a) to be a ‘‘mass change’’; 

24 


(2) require a simple process for States to notify 

25 


households of the increase in benefits; 

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46 

1 


(3) consider section 16(c)(3)(A) of the Food 

2 


and Nutrition Act of 2008 (7 U.S.C. 2025(c)(3)(A)) 

3 


to apply to any errors in the implementation of this 

4 


section, without regard to the 120-day limit de


5 


scribed in that section; and 
6 
(4) have the authority to take such measures as 
7 
necessary to ensure the efficient administration of 
8 
the benefits provided in this section. 
9 
(c) ADMINISTRATIVE EXPENSES.— 
10 
(1) IN GENERAL.—For the costs of State ad11 
ministrative expenses associated with carrying out 
12 
this section, the Secretary shall make available 
13 
$150,000,000 in each of fiscal years 2009 and 2010, 
14 
to remain available through September 30, 2012, of 
15 
which $4,500,000 is for necessary expenses of the 
16 
Food and Nutrition Service for management and 
17 
oversight of the program and for monitoring the in18 
tegrity and evaluating the effects of the payments 
19 
made under this section. 
20 
(2) AVAILABILITY OF FUNDS.—Funds described 
21 


in paragraph (1) shall be made available as grants 

22 


to State agencies based on each State’s share of 

23 


households that participate in the Supplemental Nu


24 


trition Assistance Program as reported to the De


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47 

1 


partment of Agriculture for the 12-month period 

2 


ending with June, 2008. 

3 


(d) TREATMENT OF JOBLESS WORKERS.—Beginning 
4 
with the first month that begins not less than 25 days 
5 
after the date of enactment of this Act, and for each sub6 
sequent month through September 30, 2010, jobless 
7 
adults who comply with work registration and employment 
8 
and training requirements under section 6, section 20, or 
9 
section 26 of the Food and Nutrition Act of 2008 (7 
10 
U.S.C. 2015, 2029, or 2035) shall not be disqualified from 
11 
the Supplemental Nutrition Assistance Program because 
12 
of the provisions of section 6(o)(2) of such Act (7 U.S.C. 
13 
2015(o)(2)). Beginning on October 1, 2010, for the pur14 
poses of section 6(o), a State agency shall disregard any 
15 
period during which an individual received Supplemental 
16 
Nutrition Assistance Program benefits prior to October 1, 
17 
2010. 
18 
(e) FUNDING.—There is appropriated to the Sec19 
retary of Agriculture such sums as are necessary to carry 
20 
out this section, to remain available until expended. Sec21 
tion 1106 of this Act shall not apply to this appropriation. 

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48 

1 
SEC. 2002. AFTERSCHOOL FEEDING PROGRAM FOR AT-RISK 
2 


CHILDREN. 

3 


Section 17(r) of the Richard B. Russell National 
4 
School Lunch Act (42 U.S.C. 1766(r)) is amended by 
5 
striking paragraph (5). 
6 
TITLE III—COMMERCE, JUSTICE, 
7 
AND SCIENCE 
8 
Subtitle A—Commerce 
9 
DEPARTMENT OF COMMERCE 
10 
ECONOMIC DEVELOPMENT ADMINISTRATION 
11 
ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS 
12 
(INCLUDING TRANSFER OF FUNDS) 
13 
For an additional amount for ‘‘Economic Develop14 
ment Assistance Programs’’, $250,000,000: Provided, 
15 
That the amount set aside from this appropriation pursu16 
ant to section 1106 of this Act shall not exceed 2 percent 
17 
instead of the percentage specified in such section: Pro18 
vided further, That the amount set aside pursuant to the 
19 
previous proviso shall be transferred to and merged with 
20 
the appropriation for ‘‘Salaries and Expenses’’ for pur21 
poses of program administration and oversight: Provided 
22 
further, That up to $50,000,000 may be transferred to 
23 
federally authorized regional economic development com24 
missions. 

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49 

1 


BUREAU OF THE CENSUS 

2 


PERIODIC CENSUSES AND PROGRAMS 

3 


For an additional amount for ‘‘Periodic Censuses and 
4 
Programs’’, $1,000,000,000: Provided, That section 1106 
5 
of this Act shall not apply to funds provided under this 
6 
heading. 
7 
NATIONAL TELECOMMUNICATIONS AND INFORMATION 
8 
ADMINISTRATION 
9 
SALARIES AND EXPENSES 
10 
For an additional amount for ‘‘Salaries and Ex11 
penses’’, $350,000,000, to remain available until Sep12 
tember 30, 2011: Provided, That funds shall be available 
13 
to establish the State Broadband Data and Development 
14 
Grant Program, as authorized by Public Law 110–385, 
15 
for the development and implementation of statewide ini16 
tiatives to identify and track the availability and adoption 
17 
of broadband services within each State, and to develop 
18 
and maintain a nationwide broadband inventory map, as 
19 
authorized by section 6001 of division B of this Act. 
20 
WIRELESS AND BROADBAND DEPLOYMENT GRANT 
21 


PROGRAMS 

22 


(INCLUDING TRANSFER OF FUNDS) 

23 


For necessary expenses related to the Wireless and 
24 
Broadband Deployment Grant Programs established by 
25 
section 6002 of division B of this Act, $2,825,000,000, 

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50 
1 
of which $1,000,000,000 shall be for Wireless Deployment 
2 
Grants and $1,825,000,000 shall be for Broadband De3 
ployment Grants: Provided, That the National Tele4 
communications and Information Administration shall 
5 
submit a report on planned spending and actual obliga6 
tions describing the use of these funds not later than 120 
7 
days after the date of enactment of this Act, and an up8 
date report not later than 60 days following the initial re9 
port, to the Committees on Appropriations of the House 
10 
of Representatives and the Senate, the Committee on En11 
ergy and Commerce of the House of Representatives, and 
12 
the Committee on Commerce, Science, and Transportation 
13 
of the Senate: Provided further, That notwithstanding sec14 
tion 1103 of this Act, 50 percent of the grants made avail15 
able under this heading shall be awarded not later than 
16 
September 30, 2009: Provided further, That up to 20 per17 
cent of the funds provided under this heading for Wireless 
18 
Deployment Grants and Broadband Deployment Grants 
19 
may be transferred between these programs: Provided fur20 
ther, That the Committees on Appropriations of the House 
21 
of Representatives and the Senate shall be notified at least 
22 
15 days in advance of any transfer. 
23 


DIGITAL-TO-ANALOG CONVERTER BOX PROGRAM 

24 


Notwithstanding any other provision of law, and in 
25 
addition to amounts otherwise provided in any other Act, 

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51 
1 
for costs associated with the Digital-to-Analog Converter 
2 
Box Program, $650,000,000, to be available until Sep3 
tember 30, 2009: Provided, That these funds shall be 
4 
available for coupons and related activities, including but 
5 
not limited to education, consumer support and outreach, 
6 
as deemed appropriate and necessary to ensure a timely 
7 
conversion of analog to digital television. 
8 
NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY 
9 
SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES 
10 
For an additional amount for ‘‘Scientific and Tech11 
nical Research and Services’’, $100,000,000. 
12 
INDUSTRIAL TECHNOLOGY SERVICES 
13 
For an additional amount for ‘‘Industrial Technology 
14 
Services’’, $100,000,000, of which $70,000,000 shall be 
15 
available for the necessary expenses of the Technology In16 
novation Program and $30,000,000 shall be available for 
17 
the necessary expenses of the Hollings Manufacturing Ex18 
tension Partnership. 
19 
CONSTRUCTION OF RESEARCH FACILITIES 
20 
For an additional amount for ‘‘Construction of Re21 
search Facilities’’, as authorized by sections 13 through 
22 
15 of the Act of March 13, 1901 (15 U.S.C. 278c-278e), 
23 
$300,000,000, for a competitive construction grant pro24 
gram for research science buildings: Provided further, 
25 
That for peer-reviewed grants made under this heading, 

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52 
1 
the time limitation provided in section 1103(b) of this Act 
2 
shall be 120 days. 
3 


NATIONAL OCEANIC AND ATMOSPHERIC 

4 


ADMINISTRATION 

5 


OPERATIONS, RESEARCH, AND FACILITIES 
6 
For an additional amount for ‘‘Operations, Research, 
7 
and Facilities’’, $400,000,000, for habitat restoration and 
8 
mitigation activities. 
9 
PROCUREMENT, ACQUISITION AND CONSTRUCTION 
10 
For an additional amount for ‘‘Procurement, Acquisi11 
tion and Construction’’, $600,000,000, for accelerating 
12 
satellite development and acquisition, acquiring climate 
13 
sensors and climate modeling capacity, and establishing 
14 
climate data records: Provided further, That not less than 
15 
$140,000,000 shall be available for climate data modeling. 
16 
Subtitle B—Justice 
17 
DEPARTMENT OF JUSTICE 
18 
STATE AND LOCAL LAW ENFORCEMENT ACTIVITIES 
19 
OFFICE OF JUSTICE PROGRAMS 
20 
STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE 
21 


For an additional amount for ‘‘State and Local Law 
22 
Enforcement Assistance’’, $3,000,000,000, to be available 
23 
for the Edward Byrne Memorial Justice Assistance Grant 
24 
Program as authorized by subpart 1 of part E of title I 
25 
of the Omnibus Crime Control and Safe Streets Act of 

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53 
1 
1968, (except that section 1001(c), and the special rules 
2 
for Puerto Rico under section 505(g), of such Act shall 
3 
not apply for purposes of this Act): Provided, That section 
4 
1106 of this Act shall not apply to funds provided under 
5 
this heading. 
6 
COMMUNITY ORIENTED POLICING SERVICES 
7 
For an additional amount for ‘‘Community Oriented 
8 
Policing Services’’, $1,000,000,000, to be available for 
9 
grants under section 1701 of title I of the 1968 Act (42 
10 
U.S.C. 3796dd) for the hiring and rehiring of additional 
11 
career law enforcement officers under part Q of such title 
12 
notwithstanding subsection (i) of such section: Provided, 
13 
That for peer-reviewed grants made under this heading, 
14 
the time limitation provided in section 1103(b) of this Act 
15 
shall be 120 days. 
16 
Subtitle C—Science 
17 
NATIONAL AERONAUTICS AND SPACE 
18 
ADMINISTRATION 
19 
SCIENCE 
20 
For an additional amount for ‘‘Science’’, 
21 
$400,000,000, of which not less than $250,000,000 shall 
22 
be solely for accelerating the development of the tier 1 set 
23 
of Earth science climate research missions recommended 
24 
by the National Academies Decadal Survey. 

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54 

1 


AERONAUTICS 

2 


For an additional amount for ‘‘Aeronautics’’, 
3 
$150,000,000. 
4 


CROSS AGENCY SUPPORT PROGRAMS 

5 


For an additional amount for ‘‘Cross Agency Support 
6 
Programs’’, for necessary expenses for restoration and 
7 
mitigation of National Aeronautics and Space Administra8 
tion owned infrastructure and facilities related to the con9 
sequences of hurricanes, floods, and other natural disas10 
ters occurring during 2008 for which the President de11 
clared a major disaster under title IV of the Robert T. 
12 
Stafford Disaster Relief and Emergency Assistance Act of 
13 
1974, $50,000,000. 
14 
NATIONAL SCIENCE FOUNDATION 
15 
RESEARCH AND RELATED ACTIVITIES 
16 
For an additional amount for ‘‘Research and Related 
17 
Activities’’, $2,500,000,000: Provided, That $300,000,000 
18 
shall be available solely for the Major Research Instru19 
mentation program and $200,000,000 shall be for activi20 
ties authorized by title II of Public Law 100–570 for aca21 
demic research facilities modernization: Provided, That for 
22 
peer-reviewed grants made under this heading, the time 
23 
limitation provided in section 1103(b) of this Act shall be 
24 
120 days. 

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55 

1 


EDUCATION AND HUMAN RESOURCES 

2 


For an additional amount for ‘‘Education and 
3 
Human Resources’’, $100,000,000: Provided, That 
4 
$60,000,000 shall be for activities authorized by section 
5 
7030 of Public Law 110–69 and $40,000,000 shall be for 
6 
activities authorized by section 9 of the National Science 
7 
Foundation Authorization Act of 2002 (42 U.S.C. 1862n). 
8 
MAJOR RESEARCH EQUIPMENT AND FACILITIES 
9 
CONSTRUCTION 
10 
For an additional amount for ‘‘Major Research 
11 
Equipment and Facilities Construction’’, $400,000,000, 
12 
which shall be available only for approved projects. 

13 
TITLE IV—DEFENSE 

14 
DEPARTMENT OF DEFENSE 
15 
FACILITY INFRASTRUCTURE INVESTMENTS, DEFENSE 
16 
For expenses, not otherwise provided for, to improve, 
17 
repair and modernize Department of Defense facilities, re18 
store and modernize Army barracks, and invest in the en19 
ergy efficiency of Department of Defense facilities, 
20 
$4,500,000,000, for Facilities Sustainment, Restoration 
21 
and Modernization programs of the Department of De22 
fense (including minor construction and major mainte23 
nance and repair), which shall be available as follows: 
24 
(1) ‘‘Operation and Maintenance, Army’’, 
25 


$1,490,804,000. 

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56 


1 
(2) ‘‘Operation and Maintenance, Navy’’, 
2 


$624,380,000. 
3 
(3) ‘‘Operation and Maintenance, Marine 
4 


Corps’’, $128,499,000. 

5 


(4) ‘‘Operation and Maintenance, Air Force’’, 
6 
$1,236,810,000. 
7 
(5) ‘‘Defense Health Program’’, $454,658,000. 
8 
(6) ‘‘Operation and Maintenance, Army Re9 
serve’’, $110,899,000. 
10 
(7) ‘‘Operation and Maintenance, Navy Re11 
serve’’, $62,162,000. 
12 
(8) ‘‘Operation and Maintenance, Marine Corps 
13 
Reserve’’, $45,038,000. 
14 
(9) ‘‘Operation and Maintenance, Air Force Re15 
serve’’, $14,881,000. 
16 
(10) ‘‘Operation and Maintenance, Army Na17 
tional Guard’’, $302,700,000. 
18 
(11) ‘‘Operation and Maintenance, Air National 
19 
Guard’’, $29,169,000. 
20 
ENERGY RESEARCH AND DEVELOPMENT, DEFENSE 
21 


For expenses, not otherwise provided for, for re22 
search, development, test and evaluation programs for im23 
provements in energy generation, transmission, regulation, 
24 
use, and storage, for military installations, military vehi


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57 
1 
cles, and other military equipment, $350,000,000, which 
2 
shall be available as follows: 
3 


(1) ‘‘Research, Development, Test and Evalua


4 


tion, Army’’, $87,500,000. 

5 


(2) ‘‘Research, Development, Test and Evalua6 
tion, Navy’’, $87,500,000. 
7 
(3) ‘‘Research, Development, Test and Evalua8 
tion, Air Force’’, $87,500,000. 
9 
(4) ‘‘Research, Development, Test and Evalua10 
tion, Defense-Wide’’, $87,500,000 
11 
TITLE V—ENERGY AND WATER 
12 
DEPARTMENT OF THE ARMY 
13 
CORPS OF ENGINEERS—CIVIL 
14 
CONSTRUCTION 
15 
For an additional amount for ‘‘Construction’’, 
16 
$2,000,000,000: Provided, That section 102 of Public 
17 
Law 109–103 (33 U.S.C. 2221) shall not apply to funds 
18 
provided in this paragraph: Provided further, That not19 
withstanding any other provision of law, funds provided 
20 
in this paragraph shall not be cost shared with the Inland 
21 
Waterways Trust Fund as authorized in Public Law 99– 
22 
662: Provided further, That funds provided in this para23 
graph may only be used for programs, projects or activities 
24 
previously funded: Provided further, That the Corps of En25 
gineers is directed to prioritize funding for activities based 

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1 
on the ability to accelerate existing contracts or fully fund 
2 
project elements and contracts for such elements in a time 
3 
period of 2 years after the date of enactment of this Act 
4 
giving preference to projects and activities that are labor 
5 
intensive: Provided further, That funds provided in this 
6 
paragraph shall be used for elements of projects, programs 
7 
or activities that can be completed using funds provided 
8 
herein: Provided further, That funds appropriated in this 
9 
paragraph may be used by the Secretary of the Army, act10 
ing through the Chief of Engineers, to undertake work au11 
thorized to be carried out in accordance with one or more 
12 
of section 14 of the Flood Control Act of 1946 (33 U.S.C. 
13 
701r), section 205 of the Flood Control Act of 1948 (33 
14 
U.S.C. 701s), section 206 of the Water Resources Devel15 
opment Act of 1996 (33 U.S.C. 2330), and section 1135 
16 
of the Water Resources Development Act of 1986 (33 
17 
U.S.C. 2309a), notwithstanding the program cost limita18 
tions set forth in those sections: Provided further, That 
19 
the limitation concerning total project costs in section 902 
20 
of the Water Resources Development Act of 1986, as 
21 
amended (33 U.S.C. 2280), shall not apply during fiscal 
22 
year 2009 to any project that received funds provided in 
23 
this title: Provided further, That for projects that are 
24 
being completed with funds appropriated in this Act that 
25 
are otherwise expired or lapsed for obligation, expired or 

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1 
lapsed funds appropriated in this Act may be used to pay 
2 
the cost of associated supervision, inspection, overhead, 
3 
engineering and design on those projects and on subse4 
quent claims, if any: Provided further, That the Secretary 
5 
of the Army shall submit a quarterly report to the Com6 
mittees on Appropriations of the House of Representatives 
7 
and the Senate detailing the allocation, obligation and ex8 
penditures of these funds, beginning not later than 45 
9 
days after enactment of this Act. 
10 
MISSISSIPPI RIVER AND TRIBUTARIES 
11 
For an additional amount for ‘‘Mississippi River and 
12 
Tributaries’’, $250,000,000: Provided, That funds pro13 
vided in this paragraph may only be used for programs, 
14 
projects, or activities previously funded: Provided further, 
15 
That the Corps of Engineers is directed to prioritize fund16 
ing for activities based on the ability to accelerate existing 
17 
contracts or fully fund project elements and contracts for 
18 
such elements in a time period of 2 years after the date 
19 
of enactment of this Act giving preference to projects and 
20 
activities that are labor intensive: Provided further, That 
21 
funds provided in this paragraph shall be used for ele22 
ments of projects, programs, or activities that can be com23 
pleted using funds provided herein: Provided further, That 
24 
for projects that are being completed with funds appro25 
priated in this Act that are otherwise expired or lapsed 

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1 
for obligation, expired or lapsed funds appropriated in this 
2 
Act may be used to pay the cost of associated supervision, 
3 
inspection, overhead, engineering and design on those 
4 
projects and on subsequent claims, if any: Provided fur5 
ther, That the Secretary of the Army shall submit a quar6 
terly report to the Committees on Appropriations of the 
7 
House of Representatives and the Senate detailing the al8 
location, obligation and expenditures of these funds, begin9 
ning not later than 45 days after enactment of this Act. 
10 
OPERATION AND MAINTENANCE 
11 
For an additional amount for ‘‘Operation and Main12 
tenance’’, $2,225,000,000: Provided, That the Corps of 
13 
Engineers is directed to prioritize funding for activities 
14 
based on the ability to accelerate existing contracts or fully 
15 
fund project elements and contracts for such elements in 
16 
a time period of 2 years after the date of enactment of 
17 
this Act giving preference to projects and activities that 
18 
are labor intensive: Provided further, That funds provided 
19 
in this paragraph shall be used for elements of projects, 
20 
programs, or activities that can be completed using funds 
21 
provided herein: Provided further, That for projects that 
22 
are being completed with funds appropriated in this Act 
23 
that are otherwise expired or lapsed for obligation, expired 
24 
or lapsed funds appropriated in this Act may be used to 
25 
pay the cost of associated supervision, inspection, over-

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1 
head, engineering and design on those projects and on 
2 
subsequent claims, if any: Provided further, That the Sec3 
retary of the Army shall submit a quarterly report to the 
4 
Committees on Appropriations of the House of Represent5 
atives and the Senate detailing the allocation, obligation 
6 
and expenditures of these funds, beginning not later than 
7 
45 days after enactment of this Act. 
8 
REGULATORY PROGRAM 
9 
For an additional amount for ‘‘Regulatory Program’’, 
10 
$25,000,000. 
11 
DEPARTMENT OF THE INTERIOR 
12 
BUREAU OF RECLAMATION 
13 
WATER AND RELATED RESOURCES 
14 
For an additional amount for ‘‘Water and Related 
15 
Resources’’, $500,000,000: Provided, That of the amount 
16 
appropriated under this heading, not less than 
17 
$126,000,000 shall be used for water reclamation and 
18 
reuse projects authorized under title XVI of Public Law 
19 
102–575: Provided further, That of the amount appro20 
priated under this heading, not less than $80,000,000 
21 
shall be used for rural water projects and these funds shall 
22 
be expended primarily on water intake and treatment fa23 
cilities of such projects: Provided further, That the costs 
24 
of reimbursable activities, other than for maintenance and 
25 
rehabilitation, carried out with funds made available under 

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1 
this heading shall be repaid pursuant to existing authori2 
ties and agreements: Provided further, That the costs of 
3 
maintenance and rehabilitation activities carried out with 
4 
funds provided in this Act shall be repaid pursuant to ex5 
isting authority, except the length of repayment period 
6 
shall be determined on needs-based criteria to be estab7 
lished and adopted by the Commissioner of the Bureau 
8 
of Reclamation, but in no case shall the repayment period 
9 
exceed 25 years. 
10 
DEPARTMENT OF ENERGY 
11 
ENERGY PROGRAMS 
12 
ENERGY EFFICIENCY AND RENEWABLE ENERGY 
13 
For an additional amount for ‘‘Energy Efficiency and 
14 
Renewable Energy’’, $18,500,000,000, which shall be used 
15 
as follows: 
16 
(1) $2,000,000,000 shall be for expenses nec17 
essary for energy efficiency and renewable energy re18 
search, development, demonstration and deployment 
19 
activities, to accelerate the development of tech20 
nologies, to include advanced batteries, of which not 
21 
less than $800,000,000 is for biomass and 
22 


$400,000,000 is for geothermal technologies. 

23 


(2) $500,000,000 shall be for expenses nec


24 


essary to implement the programs authorized under 

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1 


part E of title III of the Energy Policy and Con


2 


servation Act (42 U.S.C. 6341 et seq.). 

3 


(3) $1,000,000,000 shall be for the cost of 

4 


grants to institutional entities for energy sustain


5 


ability and efficiency under section 399A of the En6 
ergy Policy and Conservation Act (42 U.S.C. 6371h-
7 
1). 
8 
(4) $6,200,000,000 shall be for the Weatheriza9 
tion Assistance Program under part A of title IV of 
10 
the Energy Conservation and Production Act (42 
11 
U.S.C. 6861 et seq.). 
12 
(5) $3,500,000,000 shall be for Energy Effi13 
ciency and Conservation Block Grants, for imple14 
mentation of programs authorized under subtitle E 
15 
of title V of the Energy Independence and Security 
16 
Act of 2007 (42 U.S.C. 17151 et seq.). 
17 
(6) $3,400,000,000 shall be for the State En18 
ergy Program authorized under part D of title III 
19 
of the Energy Policy and Conservation Act (42 
20 
U.S.C. 6321). 
21 


(7) $200,000,000 shall be for expenses nec


22 


essary to implement the programs authorized under 

23 


section 131 of the Energy Independence and Secu


24 


rity Act of 2007 (42 U.S.C. 17011). 

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64 

1 


(8) $300,000,000 shall be for expenses nec


2 


essary to implement the program authorized under 

3 


section 124 of the Energy Policy Act of 2005 (42 

4 


U.S.C. 15821) and the Energy Star program. 

5 


(9) $400,000,000 shall be for expenses nec6 
essary to implement the program authorized under 
7 
section 721 of the Energy Policy Act of 2005 (42 
8 
U.S.C. 16071). 
9 
(10) $1,000,000,000 shall be for expenses nec10 
essary for the manufacturing of advanced batteries 
11 
authorized under section 136(b)(1)(B) of the Energy 
12 
Independence and Security Act of 2007 (42 U.S.C. 
13 
17013(b)(1)(B)): 
14 
Provided, That notwithstanding section 3304 of title 5, 
15 
United States Code, and without regard to the provisions 
16 
of sections 3309 through 3318 of such title 5, the Sec17 
retary of Energy may, upon a determination that there 
18 
is a severe shortage of candidates or a critical hiring need 
19 
for particular positions, recruit and directly appoint highly 
20 
qualified individuals into the competitive service: Provided 
21 
further, That such authority shall not apply to positions 
22 
in the Excepted Service or the Senior Executive Service: 
23 
Provided further, That any action authorized herein shall 
24 
be consistent with the merit principles of section 2301 of 
25 
such title 5, and the Department shall comply with the 

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1 
public notice requirements of section 3327 of such title 

2 
5. 
3 


ELECTRICITY DELIVERY AND ENERGY RELIABILITY 

4 


For an additional amount for ‘‘Electricity Delivery 
5 
and Energy Reliability,’’ $4,500,000,000: Provided, That 
6 
funds shall be available for expenses necessary for elec7 
tricity delivery and energy reliability activities to mod8 
ernize the electric grid, enhance security and reliability of 
9 
the energy infrastructure, energy storage research, devel10 
opment, demonstration and deployment, and facilitate re11 
covery from disruptions to the energy supply, and for im12 
plementation of programs authorized under title XIII of 
13 
the Energy Independence and Security Act of 2007 (42 
14 
U.S.C. 17381 et seq.): Provided further, That of such 
15 
amounts, $100,000,000 shall be for worker training: Pro16 
vided further, That the Secretary of Energy may use or 
17 
transfer amounts provided under this heading to carry out 
18 
new authority for transmission improvements, if such au19 
thority is enacted in any subsequent Act, consistent with 
20 
existing fiscal management practices and procedures. 
21 


ADVANCED BATTERY LOAN GUARANTEE PROGRAM 

22 


For the cost of guaranteed loans as authorized by 
23 
section 135 of the Energy Independence and Security Act 
24 
of 2007 (42 U.S.C. 17012), $1,000,000,000, to remain 
25 
available until expended: Provided, That of such amount, 

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1 
$10,000,000 shall be used for administrative expenses in 
2 
carrying out the guaranteed loan program, and shall be 
3 
in lieu of the amount set aside under section 1106 of this 
4 
Act: Provided further, That the cost of such loans, includ5 
ing the cost of modifying such loans, shall be as defined 
6 
in section 502 of the Congressional Budget Act of 1974. 
7 
INSTITUTIONAL LOAN GUARANTEE PROGRAM 
8 
For the cost of guaranteed loans as authorized by 
9 
section 399A of the Energy Policy and Conservation Act 
10 
(42 U.S.C. 6371h–1), $500,000,000: Provided, That of 
11 
such amount, $10,000,000 shall be used for administra12 
tive expenses in carrying out the guaranteed loan pro13 
gram, and shall be in lieu of the amount set aside under 
14 
section 1106 of this Act: Provided further, That the cost 
15 
of such loans, including the cost of modifying such loans, 
16 
shall be as defined in section 502 of the Congressional 
17 
Budget Act of 1974. 
18 
INNOVATIVE TECHNOLOGY LOAN GUARANTEE PROGRAM 
19 
For an additional amount for ‘‘Innovative Technology 
20 
Loan Guarantee Program’’ for the cost of guaranteed 
21 
loans authorized by section 1705 of the Energy Policy Act 
22 
of 2005, $8,000,000,000: Provided, That of such amount, 
23 
$25,000,000 shall be used for administrative expenses in 
24 
carrying out the guaranteed loan program, and shall be 
25 
in lieu of the amount set aside under section 1106 of this 

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1 
Act: Provided further, That the cost of such loans, includ2 
ing the cost of modifying such loans, shall be as defined 
3 
in section 502 of the Congressional Budget Act of 1974. 
4 


FOSSIL ENERGY 

5 


For an additional amount for ‘‘Fossil Energy’’, 
6 
$2,400,000,000 for necessary expenses to demonstrate 
7 
carbon capture and sequestration technologies as author8 
ized under section 702 of the Energy Independence and 
9 
Security Act of 2007. 
10 
SCIENCE 
11 
For an additional amount for ‘‘Science’’, 
12 
$2,000,000,000: Provided, That of such amounts, not less 
13 
than $400,000,000 shall be used for the Advanced Re14 
search Projects Agency—Energy authorized under section 
15 
5012 of the America COMPETES Act (42 U.S.C. 16538): 
16 
Provided further, That of such amounts, not less than 
17 
$100,000,000 shall be used for advanced scientific com18 
puting. 
19 
ENVIRONMENTAL AND OTHER DEFENSE 
20 
ACTIVITIES 
21 


DEFENSE ENVIRONMENTAL CLEANUP 

22 


For an additional amount for ‘‘Defense Environ23 
mental Cleanup,’’ $500,000,000: Provided, That such 
24 
amounts shall be used for elements of projects, programs, 

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1 
or activities that can be completed using funds provided 
2 
herein. 
3 


GENERAL PROVISIONS, THIS TITLE 

4 
SEC. 5001. WESTERN AREA POWER ADMINISTRATION BOR5 


ROWING AUTHORITY. 

6 
The Hoover Power Plant Act of 1984 (Public Law 
7 
98-381) is amended by adding at the end the following: 
8 
‘‘TITLE III—BORROWING 
9 
AUTHORITY 
10 
‘‘SEC. 301. WESTERN AREA POWER ADMINISTRATION BOR11 
ROWING AUTHORITY. 
12 
‘‘(a) DEFINITIONS.—In this section— 
13 
‘‘(1) ADMINISTRATOR.—The term ‘Adminis14 
trator’ means the Administrator of the Western 
15 
Area Power Administration. 
16 
‘‘(2) SECRETARY.—The term ‘Secretary’ means 
17 
the Secretary of the Treasury. 
18 
‘‘(b) AUTHORITY.— 
19 
‘‘(1) IN GENERAL.—Notwithstanding any other 
20 
provision of law, subject to paragraphs (2) through 
21 
(5)— 
22 


‘‘(A) the Western Area Power Administra


23 


tion may borrow funds from the Treasury; and 

24 


‘‘(B) the Secretary shall, without further 

25 


appropriation and without fiscal year limitation, 

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69 

1 


loan to the Western Area Power Administra


2 


tion, on such terms as may be fixed by the Ad


3 


ministrator and the Secretary, such sums (not 

4 


to exceed, in the aggregate (including deferred 

5 


interest), $3,250,000,000 in outstanding repay6 
able balances at any 1 time) as, in the judg7 
ment of the Administrator, are from time to 
8 
time required for the purpose of— 
9 
‘‘(i) constructing, financing, facili10 
tating, or studying construction of new or 
11 
upgraded electric power transmission lines 
12 
and related facilities with at least 1 ter13 
minus within the area served by the West14 
ern Area Power Administration; and 
15 
‘‘(ii) delivering or facilitating the de16 
livery of power generated by renewable en17 
ergy resources constructed or reasonably 
18 
expected to be constructed after the date 
19 
of enactment of this section. 
20 
‘‘(2) INTEREST.—The rate of interest to be 
21 


charged in connection with any loan made pursuant 

22 


to this subsection shall be fixed by the Secretary, 

23 


taking into consideration market yields on out


24 


standing marketable obligations of the United States 

25 


of comparable maturities as of the date of the loan. 

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1 


‘‘(3) REFINANCING.—The Western Area Power 

2 


Administration may refinance loans taken pursuant 

3 


to this section within the Treasury. 

4 


‘‘(4) PARTICIPATION.—The Administrator may 

5 


permit other entities to participate in projects fi6 
nanced under this section. 
7 
‘‘(5) CONGRESSIONAL REVIEW OF DISBURSE8 
MENT.—Effective upon the date of enactment of this 
9 
section, the Administrator shall have the authority 
10 
to have utilized $1,750,000,000 at any one time. If 
11 
the Administrator seeks to borrow funds above 
12 
$1,750,000,000, the funds will be disbursed unless 
13 
there is enacted, within 90 calendar days of the first 
14 
such request, a joint resolution that rescinds the re15 
mainder of the balance of the borrowing authority 
16 
provided in this section. 
17 
‘‘(c) TRANSMISSION LINE AND RELATED FACILITY 
18 
PROJECTS.— 
19 
‘‘(1) IN GENERAL.—For repayment purposes, 
20 
each transmission line and related facility project in 
21 


which the Western Area Power Administration par


22 


ticipates pursuant to this section shall be treated as 

23 


separate and distinct from— 

24 


‘‘(A) each other such project; and 

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1 


‘‘(B) all other Western Area Power Admin


2 


istration power and transmission facilities. 

3 


‘‘(2) PROCEEDS.—The Western Area Power 

4 


Administration shall apply the proceeds from the use 

5 


of the transmission capacity from an individual 
6 
project under this section to the repayment of the 
7 
principal and interest of the loan from the Treasury 
8 
attributable to that project, after reserving such 
9 
funds as the Western Area Power Administration 
10 
determines are necessary— 
11 
‘‘(A) to pay for any ancillary services that 
12 
are provided; and 
13 
‘‘(B) to meet the costs of operating and 
14 
maintaining the new project from which the 
15 
revenues are derived. 
16 
‘‘(3) SOURCE OF REVENUE.—Revenue from the 
17 
use of projects under this section shall be the only 
18 
source of revenue for— 
19 
‘‘(A) repayment of the associated loan for 
20 
the project; and 
21 


‘‘(B) payment of expenses for ancillary 

22 


services and operation and maintenance. 
23 
‘‘(4) LIMITATION ON AUTHORITY.—Nothing in 
24 


this section confers on the Administrator any obliga


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72 

1 


tion to provide ancillary services to users of trans


2 


mission facilities developed under this section. 

3 


‘‘(d) CERTIFICATION.— 

4 


‘‘(1) IN GENERAL.—For each project in which 

5 


the Western Area Power Administration participates 
6 
pursuant to this section, the Administrator shall cer7 
tify, prior to committing funds for any such project, 
8 
that— 
9 
‘‘(A) the project is in the public interest; 
10 
‘‘(B) the project will not adversely impact 
11 
system reliability or operations, or other statu12 
tory obligations; and 
13 
‘‘(C) it is reasonable to expect that the 
14 
proceeds from the project shall be adequate to 
15 
make repayment of the loan. 
16 
‘‘(2) FORGIVENESS OF BALANCES.— 
17 
‘‘(A) IN GENERAL.—If, at the end of the 
18 
useful life of a project, there is a remaining bal19 
ance owed to the Treasury under this section, 
20 
the balance shall be forgiven. 
21 


‘‘(B) UNCONSTRUCTED PROJECTS.—Funds 

22 


expended to study projects that are considered 

23 


pursuant to this section but that are not con


24 


structed shall be forgiven. 

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73 

1 


‘‘(C) NOTIFICATION.—The Administrator 

2 


shall notify the Secretary of such amounts as 

3 


are to be forgiven under this paragraph. 

4 


‘‘(e) PUBLIC PROCESSES.— 
5 
‘‘(1) POLICIES AND PRACTICES.—Prior to re6 
questing any loans under this section, the Adminis7 
trator shall use a public process to develop practices 
8 
and policies that implement the authority granted by 
9 
this section. 
10 
‘‘(2) REQUESTS FOR INTERESTS.—In the 
11 
course of selecting potential projects to be funded 
12 
under this section, the Administrator shall seek re13 
quests for interest from entities interested in identi14 
fying potential projects through one or more notices 
15 
published in the Federal Register.’’. 
16 
SEC. 5002. BONNEVILLE POWER ADMINISTRATION. 
17 
For the purposes of providing funds to assist in fi18 
nancing the construction, acquisition, and replacement of 
19 
the transmission system of the Bonneville Power Adminis20 
tration and to implement the authority of the Adminis21 
trator under the Pacific Northwest Electric Power Plan22 
ning and Conservation Act (16 U.S.C. 839 et seq.), an 
23 
additional $3,250,000,000 in borrowing authority is made 
24 
available under the Federal Columbia River Transmission 

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74 
1 
System Act (16 U.S.C. 838 et seq.), to remain outstanding 
2 
at any time. 
3 
SEC. 5003. APPROPRIATIONS TRANSFER AUTHORITY. 
4 


Not to exceed 20 percent of the amounts made avail5 
able in this Act to the Department of Energy for ‘‘Energy 
6 
Efficiency and Renewable Energy’’, ‘‘Electricity Delivery 
7 
and Energy Reliability’’, and ‘‘Advanced Battery Loan 
8 
Guarantee Program’’ may be transferred within and be9 
tween such accounts, except that no amount specified 
10 
under any such heading may be increased or decreased 
11 
by more than a total of 20 percent by such transfers, and 
12 
notification of such transfers shall be submitted promptly 
13 
to the Committees on Appropriations of the House of Rep14 
resentatives and the Senate. 
15 
TITLE VI—FINANCIAL SERVICES 
16 
AND GENERAL GOVERNMENT 
17 
Subtitle A—General Services 
18 
GENERAL SERVICES ADMINISTRATION 
19 
FEDERAL BUILDINGS FUND 
20 
LIMITATIONS ON AVAILABILITY OF REVENUE 
21 


(INCLUDING TRANSFER OF FUNDS) 

22 


For an additional amount to be deposited in the Fed23 
eral Buildings Fund, $7,700,000,000 for real property ac24 
tivities with priority given to activities that can commence 
25 
promptly following enactment of this Act; of which up to 

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1 
$1,000,000,000 shall be used for construction, repair, and 
2 
alteration of border facilities and land ports of entry; of 
3 
which not less than $6,000,000,000 shall be used for con4 
struction, repair, and alteration of Federal buildings for 
5 
projects that will create the greatest impact on energy effi6 
ciency and conservation; of which $108,000,000 shall re7 
main available until September 30, 2012, and shall be 
8 
used for rental of space costs associated with the construc9 
tion, repair, and alteration of these projects; Provided, 
10 
That of the amounts provided, $160,000,000 shall remain 
11 
available until September 30, 2012, and shall be for build12 
ing operations in support of the activities described in this 
13 
paragraph: Provided further, That the preceding proviso 
14 
shall apply to this appropriation in lieu of the provisions 
15 
of section 1106 of this Act: Provided further, That the Ad16 
ministrator of General Services is authorized to initiate 
17 
design, construction, repair, alteration, leasing, and other 
18 
projects through existing authorities of the Administrator: 
19 
Provided further, That the Administrator shall submit a 
20 
detailed plan, by project, regarding the use of funds to 
21 
the Committees on Appropriations of the House of Rep22 
resentatives and the Senate within 30 days after enact23 
ment of this Act, and shall provide notification to the 
24 
Committees within 15 days prior to any changes regarding 
25 
the use of these funds: Provided further, That the Admin


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1 
istrator shall report to the Committees on the obligation 
2 
of these funds on a quarterly basis beginning on June 30, 
3 
2009: Provided further, That of the amounts provided, 
4 
$4,000,000 shall be transferred to and merged with ‘‘Gov5 
ernment-Wide Policy’’, for the Office of Federal High-Per6 
formance Green Buildings as authorized in the Energy 
7 
Independence and Security Act of 2007 (Public Law 110– 
8 
140). 
9 
ENERGY EFFICIENT FEDERAL MOTOR VEHICLE FLEET 
10 
PROCUREMENT 
11 
For capital expenditures and necessary expenses of 
12 
the General Services Administration’s Motor Vehicle Ac13 
quisition and Motor Vehicle Leasing programs for the ac14 
quisition of motor vehicles, including plug-in and alter15 
native fuel vehicles, $600,000,000: Provided, That the 
16 
amount set aside from this appropriation pursuant to sec17 
tion 1106 of this Act shall be 1 percent instead of the 
18 
percentage specified in such section: Provided further, 
19 
That none of these funds may be obligated until the Ad20 
ministrator of General Services submits to the Committees 
21 
on Appropriations of the House of Representatives and the 
22 
Senate, within 90 days after enactment of this Act, a plan 
23 
for expenditure of the funds that details the current inven24 
tory of the Federal fleet owned by the General Services 
25 
Administration, as well as other Federal agencies, and the 

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1 
strategy to expend these funds to replace a portion of the 
2 
Federal fleet with the goal of substantially increasing en3 
ergy efficiency over the current status, including increas4 
ing fuel efficiency and reducing emissions: Provided fur5 
ther, That the Administrator shall report to the Commit6 
tees on the obligation of these funds on a quarterly basis 
7 
beginning on June 30, 2009. 
8 
Subtitle B—Small Business 
9 
SMALL BUSINESS ADMINISTRATION 
10 
BUSINESS LOANS PROGRAM ACCOUNT 
11 
(INCLUDING TRANSFERS OF FUNDS) 
12 
For the cost of direct loans and loan guarantees au13 
thorized by sections 6202 through 6205 of this Act, 
14 
$426,000,000: Provided, That such cost, including the 
15 
cost of modifying such loans, shall be as defined in section 
16 
502 of the Congressional Budget Act of 1974. In addition, 
17 
for administrative expenses to carry out the direct loan 
18 
and loan guarantee programs authorized by this Act, 
19 
$4,000,000, which may be transferred to and merged with 
20 
the appropriations for Salaries and Expenses: Provided, 
21 
That this sentence shall apply to this appropriation in lieu 
22 
of the provisions of section 1106 of this Act. 

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1 


GENERAL PROVISIONS, THIS SUBTITLE 

2 
SEC. 6201. ECONOMIC STIMULUS LENDING PROGRAM FOR 
3 


SMALL BUSINESSES. 

4 


(a) PURPOSE.—The purpose of this section is to per5 
mit the Small Business Administration to guarantee up 
6 
to 95 percent of qualifying small business loans made by 
7 
eligible lenders. 
8 
(b) DEFINITIONS.—For purposes of this section: 
9 
(1) The term ‘‘Administrator’’ means the Ad10 
ministrator of the Small Business Administration. 
11 
(2) The term ‘‘qualifying small business loan’’ 
12 
means any loan to a small business concern that 
13 
would be eligible for a loan guarantee under section 
14 
7(a) of the Small Business Act (15 U.S.C. 636) or 
15 
title V of the Small Business Investment Act of 
16 
1958 (15 U.S.C. 695 and following). 
17 
(3) The term ‘‘small business concern’’ has the 
18 
same meaning as provided by section 3 of the Small 
19 
Business Act (15 U.S.C. 632). 
20 
(c) APPLICATION.—In order to participate in the loan 
21 
guarantee program under this section a lender shall sub22 
mit an application to the Administrator for the guarantee 
23 
of up to 95 percent of the principal amount of a qualifying 
24 
small business loan. The Administrator shall approve or 
25 
deny each such application within 5 business days after 

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1 
receipt thereof. The Administrator may not delegate to 
2 
lenders the authority to approve or disapprove such appli3 
cations. 
4 


(d) FEES.—The Administrator may charge fees for 
5 
guarantees issued under this section. Such fees shall not 
6 
exceed the fees permitted for loan guarantees under sec7 
tion 7(a) of the Small Business Act (15 U.S.C. 631 and 
8 
following). 
9 
(e) INTEREST RATES.—The Administrator may not 
10 
guarantee under this section any loan that bears interest 
11 
at a rate higher than 3 percent above the higher of either 
12 
of the following as quoted in the Wall Street Journal on 
13 
the first business day of the week in which such guarantee 
14 
is issued: 
15 
(1) The London interbank offered rate 
16 
(LIBOR) for a 3-month period. 
17 
(2) The Prime Rate. 
18 
(f) QUALIFIED BORROWERS.— 
19 
(1) ALIENS UNLAWFULLY PRESENT IN THE 
20 
UNITED STATES.—A loan guarantee may not be 
21 


made under this section for a loan made to a con


22 


cern if an individual who is an alien unlawfully 

23 


present in the United States— 

24 


(A) has an ownership interest in that con25 
cern; or 

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1 


(B) has an ownership interest in another 

2 


concern that itself has an ownership interest in 

3 


that concern. 
4 
(2) FIRMS IN VIOLATION OF IMMIGRATION 
5 


LAWS.—No loan guarantee may be made under this 
6 
section for a loan to any entity found, based on a 
7 
determination by the Secretary of Homeland Secu8 
rity or the Attorney General to have engaged in a 
9 
pattern or practice of hiring, recruiting or referring 
10 
for a fee, for employment in the United States an 
11 
alien knowing the person is an unauthorized alien. 
12 
(g) CRIMINAL BACKGROUND CHECKS.—Prior to the 
13 
approval of any loan guarantee under this section, the Ad14 
ministrator may verify the applicant’s criminal back15 
ground, or lack thereof, through the best available means, 
16 
including, if possible, use of the National Crime Informa17 
tion Center computer system at the Federal Bureau of In18 
vestigation. 
19 
(h) APPLICATION OF OTHER LAW.—Nothing in this 
20 
section shall be construed to exempt any activity of the 
21 
Administrator under this section from the Federal Credit 
22 
Reform Act of 1990 (title V of the Congressional Budget 
23 
and Impoundment Control Act of 1974; 2 U.S.C. 661 and 
24 
following). 

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1 


(i) SUNSET.—Loan guarantees may not be issued 
2 
under this section after the date 90 days after the date 
3 
of establishment (as determined by the Administrator) of 
4 
the economic recovery program under section 6204. 
5 


(j) SMALL BUSINESS ACT PROVISIONS.—The provi6 
sions of the Small Business Act applicable to loan guaran7 
tees under section 7 of that Act shall apply to loan guaran8 
tees under this section except as otherwise provided in this 
9 
section. 
10 
(k) AUTHORIZATION.—There are authorized to be ap11 
propriated such sums as may be necessary to carry out 
12 
this section. 
13 
SEC. 6202. ESTABLISHMENT OF SBA SECONDARY MARKET 
14 
LENDING AUTHORITY. 
15 
(a) PURPOSE.—The purpose of this section is to pro16 
vide the Small Business Administration with the authority 
17 
to establish a Secondary Market Lending Authority within 
18 
the SBA to make loans to the systemically important SBA 
19 
secondary market broker-dealers who operate the SBA 
20 
secondary market. 
21 


(b) DEFINITIONS.—For purposes of this section: 

22 


(1) The term ‘‘Administrator’’ means the Ad


23 


ministrator of the SBA. 

24 


(2) The term ‘‘SBA’’ means the Small Business 

25 


Administration. 

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1 


(3) The terms ‘‘Secondary Market Lending Au


2 


thority’’ and ‘‘Authority’’ mean the office established 

3 


under subsection (c). 

4 


(4) The term ‘‘SBA secondary market’’ means 

5 


the market for the purchase and sale of loans origi6 
nated, underwritten, and closed under the Small 
7 
Business Act. 
8 
(5) The term ‘‘Systemically Important Sec9 
ondary Market Broker-Dealers’’ mean those entities 
10 
designated under subsection (c)(1) as vital to the 
11 
continued operation of the SBA secondary market 
12 
by reason of their purchase and sale of the govern13 
ment guaranteed portion of loans, or pools of loans, 
14 
originated, underwritten, and closed under the Small 
15 
Business Act. 
16 
(c) RESPONSIBILITIES, AUTHORITIES, ORGANIZA17 
TION, AND LIMITATIONS.— 
18 
(1) DESIGNATION OF SYSTEMICALLY IMPOR19 
TANT SBA SECONDARY MARKET BROKER-DEAL20 
ERS.—The Administrator shall establish a process to 
21 


designate, in consultation with the Board of Gov


22 


ernors of the Federal Reserve and the Secretary of 

23 


the Treasury, Systemically Important Secondary 

24 


Market Broker-Dealers. 

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1 


(2) ESTABLISHMENT OF SBA SECONDARY MAR


2 


KET LENDING AUTHORITY.— 

3 


(A) ORGANIZATION.— 

4 


(i) The Administrator shall establish 

5 


within the SBA an office to provide loans 
6 
to Systemically Important Secondary Mar7 
ket Broker-dealers to be used for the pur8 
pose of financing the inventory of the gov9 
ernment guaranteed portion of loans, origi10 
nated, underwritten, and closed under the 
11 
Small Business Act or pools of such loans. 
12 
(ii) The Administrator shall appoint a 
13 
Director of the Authority who shall report 
14 
to the Administrator. 
15 
(iii) The Administrator is authorized 
16 
to hire such personnel as are necessary to 
17 
operate the Authority. 
18 
(iv) The Administrator may contract 
19 
such Authority operations as he determines 
20 
necessary to qualified third-party compa21 


nies or individuals. 

22 


(v) The Administrator is authorized to 

23 


contract with private sector fiduciary and 

24 


custodial agents as necessary to operate 

25 


the Authority. 

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84 

1 


(B) LOANS.— 

2 


(i) The Administrator shall establish 

3 


by rule a process under which Systemically 

4 


Important SBA Secondary Market Broker


5 


Dealers designated under paragraph (1) 
6 
may apply to the Administrator for loans 
7 
under this section. 
8 
(ii) The rule under clause (i) shall 
9 
provide a process for the Administrator to 
10 
consider and make decisions regarding 
11 
whether or not to extend a loan applied for 
12 
under this section. Such rule shall include 
13 
provisions to assure each of the following: 
14 
(I) That loans made under this 
15 
section are for the sole purpose of fi16 
nancing the inventory of the govern17 
ment guaranteed portion of loans, 
18 
originated, underwritten, and closed 
19 
under the Small Business Act or pools 
20 
of such loans. 
21 


(II) That loans made under this 

22 


section are fully collateralized to the 

23 


satisfaction of the Administrator. 

24 


(III) That there is no limit to the 

25 


frequency in which a borrower may 

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85 

1 


borrow under this section unless the 

2 


Administrator determines that doing 

3 


so would create an undue risk of loss 

4 


to the agency or the United States. 

5 


(IV) That there is no limit on the 
6 
size of a loan, subject to the discretion 
7 
of the Administrator. 
8 
(iii) Interest on loans under this sec9 
tion shall not exceed the Federal Funds 
10 
target rate as established by the Federal 
11 
Reserve Board of Governors plus 25 basis 
12 
points. 
13 
(iv) The rule under this section shall 
14 
provide for such loan documents, legal cov15 
enants, collateral requirements and other 
16 
required documentation as necessary to 
17 
protect the interests of the agency, the 
18 
United States, and the taxpayer. 
19 
(v) The Administrator shall establish 
20 
custodial accounts to safeguard any collat21 


eral pledged to the SBA in connection with 

22 


a loan under this section. 

23 


(vi) The Administrator shall establish 

24 


a process to disburse and receive funds to 

25 


and from borrowers under this section. 

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1 


(C) LIMITATIONS ON USE OF LOAN PRO2 
CEEDS BY SYSTEMICALLY IMPORTANT SEC3 


ONDARY MARKET BROKER-DEALERS.—The Ad


4 


ministrator shall ensure that borrowers under 

5 


this section are using funds provided under this 
6 
section only for the purpose specified in sub7 
paragraph (B)(ii)(I). If the Administrator finds 
8 
that such funds were used for any other pur9 
pose, the Administrator shall— 
10 
(i) require immediate repayment of 
11 
outstanding loans; 
12 
(ii) prohibit the borrower, its affili13 
ates, or any future corporate manifestation 
14 
of the borrower from using the Authority; 
15 
and 
16 
(iii) take any other actions the Ad17 
ministrator, in consultation with the Attor18 
ney General of the United States, deems 
19 
appropriate. 
20 
(d) REPORT TO CONGRESS.—The Administrator shall 
21 
submit a report to Congress not later than the third busi22 
ness day of each month containing a statement of each 
23 
of the following: 
24 


(1) The aggregate loan amounts extended dur


25 


ing the preceding month under this section. 

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87 

1 


(2) The aggregate loan amounts repaid under 

2 


this section during the proceeding month. 

3 


(3) The aggregate loan amount outstanding 

4 


under this section. 

5 


(4) The aggregate value of assets held as collat6 
eral under this section; 
7 
(5) The amount of any defaults or delinquencies 
8 
on loans made under this section. 
9 
(6) The identity of any borrower found by the 
10 
Administrator to misuse funds made available under 
11 
this section. 
12 
(7) Any other information the Administrator 
13 
deems necessary to fully inform Congress of undue 
14 
risk of financial loss to the United States in connec15 
tion with loans made under this section. 
16 
(e) DURATION.—The authority of this section shall 
17 
remain in effect for a period of 2 years after the date of 
18 
enactment of this section. 
19 
(f) FUNDING.—Such sums as necessary are author20 
ized to be appropriated to carry out the provisions of this 
21 
section. 
22 


(g) BUDGET TREATMENT.—Nothing in this section 
23 
shall be construed to exempt any activity of the Adminis24 
trator under this section from the Federal Credit Reform 
25 
Act of 1990 (title V of the Congressional Budget and Im


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1 
poundment Control Act of 1974; 2 U.S.C. 661 and fol2 
lowing). 
3 


(h) EMERGENCY RULEMAKING AUTHORITY.—The 
4 
Administrator shall promulgate regulations under this sec5 
tion within 15 days after the date of enactment of enact6 
ment of this section. In promulgating these regulations, 
7 
the Administrator the notice requirements of section 
8 
553(b) of title 5 of the United States Code shall not apply. 
9 
SEC. 6203. ESTABLISHMENT OF SBA SECONDARY MARKET 
10 
GUARANTEE AUTHORITY. 
11 
(a) PURPOSE.—The purpose of this section is to pro12 
vide the Administrator with the authority to establish the 
13 
SBA Secondary Market Guarantee Authority within the 
14 
SBA to provide a Federal guarantee for pools of first lien 
15 
504 loans that are to be sold to third-party investors. 
16 
(b) DEFINITIONS.—For purposes of this section: 
17 
(1) The term ‘‘Administrator’’ means the Ad18 
ministrator of the Small Business Administration. 
19 
(2) The term ‘‘first lien position 504 loan’’ 
20 
means the first mortgage position, non-federally 
21 


guaranteed loans made by private sector lenders 

22 


made under title V of the Small Business Invest


23 


ment Act. 

24 


(c) ESTABLISHMENT OF AUTHORITY.— 

25 


(1) ORGANIZATION.— 

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1 


(A) The Administrator shall establish a 

2 


Secondary Market Guarantee Authority within 

3 


the Small Business Administration. 

4 


(B) The Administrator shall appoint a Di


5 


rector of the Authority who shall report to the 
6 
Administrator. 
7 
(C) The Administrator is authorized to 
8 
hire such personnel as are necessary to operate 
9 
the Authority and may contract such operations 
10 
of the Authority as necessary to qualified third11 
party companies or individuals. 
12 
(D) The Administrator is authorized to 
13 
contract with private sector fiduciary and custo14 
dial agents as necessary to operate the Author15 
ity. 
16 
(2) GUARANTEE PROCESS.— 
17 
(A) The Administrator shall establish, by 
18 
rule, a process in which private sector entities 
19 
may apply to the Administration for a Federal 
20 
guarantee on pools of first lien position 504 
21 


loans that are to be sold to third-party inves22 
tors. 
23 


(B) The Administrator shall appoint a Di


24 


rector of the Authority who shall report to the 

25 


Administrator. 

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90 

1 


(C) The Administrator is authorized to 

2 


hire such personnel as are necessary to operate 

3 


the Authority and may contract such operations 

4 


of the Authority as necessary to qualified third


5 


party companies or individuals. 
6 
(D) The Administrator is authorized to 
7 
contract with private sector fiduciary and custo8 
dial agents as necessary to operate the Author9 
ity. 
10 
(3) RESPONSIBILITIES.— 
11 
(A) The Administrator shall establish, by 
12 
rule, a process in which private sector entities 
13 
may apply to the SBA for a Federal guarantee 
14 
on pools of first lien position 504 loans that are 
15 
to be sold to third-party investors. 
16 
(B) The rule under this section shall pro17 
vide for a process for the Administrator to con18 
sider and make decisions regarding whether to 
19 
extend a Federal guarantee referred to in 
20 
clause (i). Such rule shall also provide that: 
21 


(i) The seller of the pools purchasing 

22 


a guarantee under this section retains not 

23 


less than 5 percent of the dollar amount of 

24 


the pools to be sold to third-party inves25 
tors. 

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91 

1 


(ii) The seller of such pools shall ab


2 


sorb any and all losses resulting from a 

3 


shortage or excess of monthly cash flows. 

4 


(iii) The Administrator shall receive a 

5 


monthly fee of not more than 50 basis 
6 
points on the outstanding balance of the 
7 
dollar amount of the pools that are guar8 
anteed. 
9 
(iv) The Administrator may guarantee 
10 
not more than $3,000,000,0000 of pools 
11 
under this authority. 
12 
(C) The Administrator shall establish doc13 
uments, legal covenants, and other required 
14 
documentation to protect the interests of the 
15 
United States. 
16 
(D) The Administrator shall establish a 
17 
process to receive and disburse funds to entities 
18 
under the authority established in this section. 
19 
(d) LIMITATIONS.— 
20 
(1) The Administrator shall ensure that entities 
21 


purchasing a guarantee under this section are using 

22 


such guarantee for the purpose of selling 504 first 

23 


lien position pools to third-party investors. 

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92 

1 


(2) If the Administrator finds that any such 

2 


guarantee was used for a purpose other than that 

3 


specified in paragraph (1), the Administrator shall— 

4 


(A) terminate such guarantee immediately, 

5 


(B) prohibit the purchaser of the guar6 
antee or its affiliates (within the meaning of the 
7 
regulations under 13 CFR 121.103) from using 
8 
the authority of this section in the future; and 
9 
(C) take any other actions the Adminis10 
trator, in consultation with the Attorney Gen11 
eral of the United States deems appropriate. 
12 
(e) OVERSIGHT.—The Administrator shall submit a 
13 
report to Congress not later than the third business day 
14 
of each month setting forth each of the following: 
15 
(1) The aggregate amount of guarantees ex16 
tended under this section during the proceeding 
17 
month. 
18 
(2) The aggregate amount of guarantees out19 
standing. 
20 
(3) Defaults and payments on defaults made 
21 


under this section. 

22 


(4) The identity of each purchaser of a guar


23 


antee found by the Administrator to have misused 

24 


guarantees under this section. 

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93 

1 


(5) Any other information the Administrator 

2 


deems necessary to fully inform Congress of undue 

3 


risk to the United States associated with the 

4 


issuance of guarantees under this section. 

5 


(f) DURATION OF PROGRAM.—The authority of this 
6 
section shall terminate on the date 2 years after the date 
7 
of enactment of this section. 
8 
(g) FUNDING.—Such sums as necessary are author9 
ized to be appropriated to carry out the provisions of this 
10 
section. 
11 
(h) BUDGET TREATMENT.—Nothing in this section 
12 
shall be construed to exempt any activity of the Adminis13 
trator under this section from the Federal Credit Reform 
14 
Act of 1990 (title V of the Congressional Budget and Im15 
poundment Control Act of 1974; 2 U.S.C. 661 and fol16 
lowing). 
17 
(i) EMERGENCY RULEMAKING AUTHORITY.—The 
18 
Administrator shall issue regulations under this section 
19 
within 15 days after the date of enactment of this section. 
20 
The notice requirements of section 553(b) of Title 5, 
21 
United States Code shall not apply to the promulgation 
22 
of such regulations. 

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1 
SEC. 6204. ECONOMIC RECOVERY PROGRAM. 
2 


(a) PURPOSE.—The purpose of this section is to es3 
tablish a new lending and refinancing authority within the 
4 
Small Business Administration. 
5 


(b) DEFINITIONS.—For purposes of this section: 
6 
(1) The term ‘‘Administrator’’ means the Ad7 
ministrator of the Small Business Administration. 
8 
(2) The term ‘‘small business concern’’ has the 
9 
same meaning as provided by section 3 of the Small 
10 
Business Act (15 U.S.C. 632). 
11 
(c) REFINANCING AUTHORITY.— 
12 
(1) IN GENERAL.—Upon application from a 
13 
lender (and with consent of the borrower), the Ad14 
ministrator may refinance existing non-Small Busi15 
ness Administration or Small Business Administra16 
tion loans (including loans under sections 7(a) and 
17 
504 of the Small Business Act) made to small busi18 
ness concerns. 
19 
(2) ELIGIBLE LOANS.—In order to be eligible 
20 
for refinancing under this section— 
21 


(A) the amount of the loan refinanced may 

22 


not exceed $10,000,000 and a first lien must be 

23 


conveyed to the Administrator; 

24 


(B) the lender shall offer to accept from 

25 


the Administrator as full repayment of the loan 

26 


an amount equal to less than 100 percent but 

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95 

1 


more than 85 percent of the remaining balance 

2 


of the principal of the loan; and 

3 


(C) the loan to be refinanced was made be


4 


fore the date of enactment of this Act and for 

5 


a purpose that would have been eligible for a 
6 
loan under any Small Business Administration 
7 
lending program. 
8 
(3) TERMS.—The term of the refinancing by 
9 
the Administrator under this section shall not be 
10 
less than remaining term on the loan that is refi11 
nanced but shall not exceed a term of 20 years. The 
12 
rate of interest on the loan refinanced under this 
13 
section shall be fixed by the Administrator at a level 
14 
that the Administrator determines will result in 
15 
manageable monthly payments for the borrower. 
16 
(4) LIMIT.—The Administrator may not refi17 
nance amounts under this section that are greater 
18 
than the amount the lender agrees to accept from 
19 
the Administrator as full repayment of the loan as 
20 
provided in paragraph (2)(B). 
21 


(d) UNDERWRITING AND OTHER LOAN SERVICES.— 

22 


(1) IN GENERAL.—The Administrator is au


23 


thorized to engage in underwriting, loan closing, 

24 


funding, and servicing of loans made to small busi


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96 

1 


ness concerns and to guarantee loans made by other 

2 


entities to small business concerns. 

3 


(2) APPLICATION PROCESS.—The Adminis


4 


trator shall by rule establish a process in which 

5 


small business concerns may submit applications to 
6 
the Administrator for the purposes of securing a 
7 
loan under this subsection. The Administrator shall, 
8 
at a minimum, collect all information necessary to 
9 
determine the creditworthiness and repayment abil10 
ity of the borrower. 
11 
(3) PARTICIPATION OF LENDERS.— 
12 
(A) The Administrator shall by rule estab13 
lish a process in which the Administrator makes 
14 
available loan applications and all accom15 
panying information to lenders for the purpose 
16 
of such lenders originating, underwriting, clos17 
ing, and servicing such loans. 
18 
(B) Lenders are eligible to receive loan ap19 
plications and accompanying information under 
20 
this paragraph if they participate in the pro21 


grams established in section 7(a) of the Small 

22 


Business Act (15 U.S.C. 636) or title V of the 

23 


Small Business Investment Act (15 U.S.C. 
24 
695). 

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97 

1 


(C) The Administrator shall first make 

2 


available such loan applications and accom


3 


panying information to lenders within 100 miles 

4 


of a loan applicant’s principal office. 

5 


(D) If a lender described in subparagraph 
6 
(C) does not agree to originate, underwrite, 
7 
close, and service such loans within 5 business 
8 
days of receiving the loan applications, the Ad9 
ministrator shall subsequently make available 
10 
such loan applications and accompanying infor11 
mation to lenders in the Preferred Lenders Pro12 
gram under section 7(a)(2)(C)(ii) of the Small 
13 
Business Act (15 U.S.C. 636). 
14 
(E) If a lender described in subparagraph 
15 
(C) or (D) does not agree to originate, under16 
write, close, and service such loans within 10 
17 
business days of receiving the loan applications, 
18 
the Administrator may originate, underwrite, 
19 
close, and service such loans as described in 
20 
paragraph (1) of this subsection. 
21 


(4) ASSET SALES.—The Administrator shall 

22 


offer to sell loans made or refinanced by the Admin


23 


istrator under this section. Such sales shall be made 

24 


through semi-annual public solicitation (in the Fed


25 


eral Register and in other media) of offers to pur


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98 

1 


chase. The Administrator may contract with vendors 

2 


for due diligence, asset valuation, and other services 

3 


related to such sales. The Administrator may not 

4 


sell any loan under this section for less than 90 per


5 


cent of the net present value of the loan, as deter6 
mined and certified by a qualified third-party. 
7 
(5) LOANS NOT SOLD.—The Administrator 
8 
shall maintain and service loans made by the Admin9 
istrator under this section that are not sold through 
10 
the asset sales under this section. 
11 
(e) DURATION.— The authority of this section shall 
12 
terminate on the date two years after the date on which 
13 
the program under this section becomes operational (as 
14 
determined by the Administrator). 
15 
(f) APPLICATION OF OTHER LAW.—Nothing in this 
16 
section shall be construed to exempt any activity of the 
17 
Administrator under this section from the Federal Credit 
18 
Reform Act of 1990 (title V of the Congressional Budget 
19 
and Impoundment Control Act of 1974; 2 U.S.C. 661 and 
20 
following). 
21 


(g) QUALIFIED LOANS.— 
22 
(1) ALIENS UNLAWFULLY PRESENT IN THE 
23 


UNITED STATES.—A loan to any concern shall not 

24 


be subject to this section if an individual who is an 

25 


alien unlawfully present in the United States— 

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99 

1 


(A) has an ownership interest in that con


2 


cern; or 

3 


(B) has an ownership interest in another 

4 


concern that itself has an ownership interest in 

5 


that concern. 
6 
(2) FIRMS IN VIOLATION OF IMMIGRATION 
7 
LAWS.—No loan shall be subject to this section if 
8 
the borrower is an entity found, based on a deter9 
mination by the Secretary of Homeland Security or 
10 
the Attorney General to have engaged in a pattern 
11 
or practice of hiring, recruiting or referring for a 
12 
fee, for employment in the United States an alien 
13 
knowing the person is an unauthorized alien. 
14 
(h) REPORTS.—The Administrator shall submit a re15 
port to Congress semi-annually setting forth the aggregate 
16 
amount of loans and geographic dispersion of such loans 
17 
made, underwritten, closed, funded, serviced, sold, guaran18 
teed, or held by the Administrator under the authority of 
19 
this section. Such report shall also set forth information 
20 
concerning loan defaults, prepayments, and recoveries re21 
lated to loans ,made under the authority of this section. 
22 


(i) AUTHORIZATION.—There are authorized to be ap23 
propriated such sums as may be necessary to carry out 
24 
this section. 

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100 


1 
SEC. 6205. STIMULUS FOR COMMUNITY DEVELOPMENT 
2 


LENDING. 

3 


(a) REFINANCING UNDER THE LOCAL DEVELOP4 
MENT BUSINESS LOAN PROGRAM.—Section 502 of the 
5 
Small Business Investment Act of 1958 (15 U.S.C. 696) 
6 
is amended by adding at the end the following: 
7 
‘‘(7) PERMISSIBLE DEBT REFINANCING.— 
8 
‘‘(A) IN GENERAL.—Any financing ap9 
proved under this title may include a limited 
10 
amount of debt refinancing. 
11 
‘‘(B) EXPANSIONS.—If the project involves 
12 
expansion of a small business concern which 
13 
has existing indebtedness collateralized by fixed 
14 
assets, any amount of existing indebtedness 
15 
that does not exceed 1/2 of the project cost of 
16 
the expansion may be refinanced and added to 
17 
the expansion cost, if— 
18 
‘‘(i) the proceeds of the indebtedness 
19 
were used to acquire land, including a 
20 
building situated thereon, to construct a 
21 


building thereon, or to purchase equip22 
ment; 
23 


‘‘(ii) the borrower has been current on 

24 


all payments due on the existing debt for 

25 


not less than 1 year preceding the date of 

26 


refinancing; and 

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101 

1 


‘‘(iii) the financing under section 504 

2 


will provide better terms or rate of interest 

3 


than exists on the debt at the time of refi


4 


nancing.’’. 

5 


(b) JOB CREATION GOALS.—Section 501(e)(1) and 
6 
section 501(e)(2) of the Small Business Investment Act 
7 
(15 U.S.C. 695) are each amended by striking ‘‘$50,000’’ 
8 
and inserting ‘‘$65,000’’. 
9 
SEC. 6206. INCREASING SMALL BUSINESS INVESTMENT. 
10 
(a) SIMPLIFIED MAXIMUM LEVERAGE LIMITS.—Sec11 
tion 303(b) of the Small Business Investment Act of 1958 
12 
(15 U.S.C. 683(b)) is amended— 
13 
(1) by striking so much of paragraph (2) as 
14 
precedes subparagraphs (C) and (D) and inserting 
15 
the following: 
16 
‘‘(2) MAXIMUM LEVERAGE.— 
17 
‘‘(A) IN GENERAL.—The maximum 
18 
amount of outstanding leverage made available 
19 
to any one company licensed under section 
20 
301(c) of this Act may not exceed the lesser 
21 
of— 
22 


‘‘(i) 300 percent of such company’s 

23 


private capital; or 

24 


‘‘(ii) $150,000,000. 

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102 

1 


‘‘(B) MULTIPLE LICENSES UNDER COM


2 


MON CONTROL.—The maximum amount of out


3 


standing leverage made available to two or more 

4 


companies licensed under section 301(c) of this 

5 


Act that are commonly controlled (as deter6 
mined by the Administrator) and not under 
7 
capital impairment may not exceed 
8 
$225,000,000.’’; and 
9 
(2) by striking paragraph (4). 
10 
(b) SIMPLIFIED AGGREGATE INVESTMENT LIMITA11 
TIONS.—Section 306(a) of the Small Business Investment 
12 
Act of 1958 (15 U.S.C. 686(a)) is amended to read as 
13 
follows: 
14 
‘‘(a) PERCENTAGE LIMITATION ON PRIVATE CAP15 
ITAL.—If any small business investment company has ob16 
tained financing from the Administrator and such financ17 
ing remains outstanding, the aggregate amount of securi18 
ties acquired and for which commitments may be issued 
19 
by such company under the provisions of this title for any 
20 
single enterprise shall not, without the approval of the Ad21 
ministrator, exceed 10 percent of the sum of— 
22 


‘‘(1) the private capital of such company; and 

23 


‘‘(2) the total amount of leverage projected by 

24 


the company in the company’s business plan that 

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103 

1 


was approved by the Administrator at the time of 

2 


the grant of the company’s license.’’. 

3 
SEC. 6207. GAO REPORT. 
4 


(a) REPORT.—Not later than 30 days after the enact5 
ment of this Act, the Comptroller General of the United 
6 
States shall report to the Congress on the actions of the 
7 
Administrator in implementing the authority established 
8 
in sections 6201 through 6206 of this Act. 
9 
(b) INCLUDED ITEM.—The report under this section 
10 
shall include a summary of the activity of the Adminis11 
trator under this section and an analysis of whether he 
12 
is accomplishing the purpose of increasing liquidity in the 
13 
secondary market for Small Business Administration 
14 
loans. 
15 
TITLE VII—HOMELAND 
16 
SECURITY 
17 
DEPARTMENT OF HOMELAND SECURITY 
18 
U.S. CUSTOMS AND BORDER PROTECTION 
19 
SALARIES AND EXPENSES 
20 
For an additional amount for ‘‘Salaries and Ex21 
penses’’, $100,000,000, for non-intrusive detection tech22 
nology to be deployed at sea ports of entry. 

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104 

1 


CONSTRUCTION 

2 


For an additional amount for ‘‘Construction’’, 
3 
$150,000,000, to repair and construct inspection facilities 
4 
at land border ports of entry. 
5 


TRANSPORTATION SECURITY ADMINISTRATION 
6 
AVIATION SECURITY 
7 
For an additional amount for ‘‘Aviation Security’’, 
8 
$500,000,000, for the purchase and installation of explo9 
sive detection systems and emerging checkpoint tech10 
nologies: Provided, That the Assistant Secretary of Home11 
land Security (Transportation Security Administration) 
12 
shall prioritize the award of these funds to accelerate the 
13 
installations at locations with completed design plans and 
14 
to expeditiously award new letters of intent. 
15 
COAST GUARD 
16 
ALTERATION OF BRIDGES 
17 
For an additional amount for ‘‘Alteration of 
18 
Bridges’’, $150,000,000, for alteration or removal of ob19 
structive bridges, as authorized by section 6 of the Tru20 
man-Hobbs Act (33 U.S.C. 516): Provided, That the 
21 
Coast Guard shall award these funds to those bridges that 
22 
are ready to proceed to construction. 

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105 

1 


FEDERAL EMERGENCY MANAGEMENT AGENCY 

2 


EMERGENCY FOOD AND SHELTER 

3 


For an additional amount for ‘‘Emergency Food and 
4 
Shelter’’, $200,000,000, to carry out the emergency food 
5 
and shelter program pursuant to title III of the McKin6 
ney-Vento Homeless Assistance Act (42 U.S.C. 11331 et 
7 
seq.): Provided, That for the purposes of this appropria8 
tion, the redistribution required by section 1104(b) shall 
9 
be carried out by the Federal Emergency Management 
10 
Agency and the National Board, who may reallocate and 
11 
obligate any funds that are unclaimed or returned to the 
12 
program: Provided further, That the amount set aside 
13 
from this appropriation pursuant to section 1106 of this 
14 
Act shall be 3.5 percent instead of the percentage specified 
15 
in such section. 
16 
GENERAL PROVISIONS, THIS TITLE 
17 
SEC. 7001. EXTENSION OF PROGRAMS. 
18 
Section 401(b) of the Illegal Immigration Reform and 
19 
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a 
20 
note) is amended by striking ‘‘11-year period’’ and insert21 
ing ‘‘16-year period’’. 
22 
SEC. 7002. PROTECTION OF SOCIAL SECURITY ADMINIS23 


TRATION PROGRAMS. 

24 
(a) FUNDING UNDER AGREEMENT.—Effective for 
25 
fiscal years beginning on or after October 1, 2008, the 

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106 
1 
Commissioner of Social Security and the Secretary of 
2 
Homeland Security shall enter into and maintain an 
3 
agreement which shall— 
4 


(1) provide funds to the Commissioner for the 

5 


full costs of the responsibilities of the Commissioner 
6 
under section 404 of the Illegal Immigration Reform 
7 
and Immigrant Responsibility Act of 1996 (8 U.S.C. 
8 
1324a note), including (but not limited to)— 
9 
(A) acquiring, installing, and maintaining 
10 
technological equipment and systems necessary 
11 
for the fulfillment of the responsibilities of the 
12 
Commissioner under such section 404, but only 
13 
that portion of such costs that are attributable 
14 
exclusively to such responsibilities; and 
15 
(B) responding to individuals who contest 
16 
a tentative nonconfirmation provided by the 
17 
basic pilot confirmation system established 
18 
under such section; 
19 
(2) provide such funds quarterly in advance of 
20 
the applicable quarter based on estimating method21 


ology agreed to by the Commissioner and the Sec


22 


retary (except in such instances where the delayed 

23 


enactment of an annual appropriation may preclude 

24 


such quarterly payments); and 

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107 


1 


(3) require an annual accounting and reconcili


2 


ation of the actual costs incurred and the funds pro


3 


vided under the agreement, which shall be reviewed 

4 


by the Office of Inspector General of the Social Se


5 


curity Administration and the Department of Home6 
land Security. 
7 
(b) CONTINUATION OF EMPLOYMENT VERIFICATION 
8 
IN ABSENCE OF TIMELY AGREEMENT.—In any case in 
9 
which the agreement required under subsection (a) for any 
10 
fiscal year beginning on or after October 1, 2008, has not 
11 
been reached as of October 1 of such fiscal year, the latest 
12 
agreement between the Commissioner and the Secretary 
13 
of Homeland Security providing for funding to cover the 
14 
costs of the responsibilities of the Commissioner under 
15 
section 404 of the Illegal Immigration Reform and Immi16 
grant Responsibility Act of 1996 (8 U.S.C. 1324a note) 
17 
shall be deemed in effect on an interim basis for such fis18 
cal year until such time as an agreement required under 
19 
subsection (a) is subsequently reached, except that the 
20 
terms of such interim agreement shall be modified by the 
21 
Director of the Office of Management and Budget to ad22 
just for inflation and any increase or decrease in the vol23 
ume of requests under the basic pilot confirmation system. 
24 
In any case in which an interim agreement applies for any 
25 
fiscal year under this subsection, the Commissioner and 

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1 
the Secretary shall, not later than October 1 of such fiscal 
2 
year, notify the Committee on Ways and Means, the Com3 
mittee on the Judiciary, and the Committee on Appropria4 
tions of the House of Representatives and the Committee 
5 
on Finance, the Committee on the Judiciary, and the 
6 
Committee on Appropriations of the Senate of the failure 
7 
to reach the agreement required under subsection (a) for 
8 
such fiscal year. Until such time as the agreement re9 
quired under subsection (a) has been reached for such fis10 
cal year, the Commissioner and the Secretary shall, not 
11 
later than the end of each 90-day period after October 
12 
1 of such fiscal year, notify such Committees of the status 
13 
of negotiations between the Commissioner and the Sec14 
retary in order to reach such an agreement. 
15 
SEC. 7003. GAO STUDY OF BASIC PILOT CONFIRMATION 
16 
SYSTEM. 
17 
(a) IN GENERAL.—As soon as practicable after the 
18 
date of the enactment of this Act, the Comptroller General 
19 
of the United States shall conduct a study regarding erro20 
neous tentative nonconfirmations under the basic pilot 
21 
confirmation system established under section 404(a) of 
22 
the Illegal Immigration Reform and Immigrant Responsi23 
bility Act of 1996 (8 U.S.C. 1324a note). 

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1 
(b) MATTERS TO BE STUDIED.—In the study re2 
quired under subsection (a), the Comptroller General shall 
3 
determine and analyze— 
4 


(1) the causes of erroneous tentative noncon


5 


firmations under the basic pilot confirmation system; 
6 
(2) the processes by which such erroneous ten7 
tative nonconfirmations are remedied; and 
8 
(3) the effect of such erroneous tentative non9 
confirmations on individuals, employers, and Federal 
10 
agencies. 
11 
(c) REPORT.—Not later than 2 years after the date 
12 
of the enactment of this Act, the Comptroller General shall 
13 
submit the results of the study required under subsection 
14 
(a) to the Committee on Ways and Means and the Com15 
mittee on the Judiciary of the House of Representatives 
16 
and the Committee on Finance and the Committee on the 
17 
Judiciary of the Senate. 
18 
SEC. 7004. GAO STUDY OF EFFECTS OF BASIC PILOT PRO19 
GRAM ON SMALL ENTITIES. 
20 
(a) IN GENERAL.—Not later than 2 years after the 
21 
date of the enactment of this Act, the Comptroller General 
22 
of the United States shall submit to the Committees on 
23 
the Judiciary of the United States House of Representa24 
tives and the Senate a report containing the Comptroller 
25 
General’s analysis of the effects of the basic pilot program 

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110 
1 
described in section 403(a) of the Illegal Immigration Re2 
form and Immigrant Responsibility Act of 1996 (8 U.S.C. 
3 
1324a note) on small entities (as defined in section 601 
4 
of title 5, United States Code). The report shall detail— 
5 


(1) the costs of compliance with such program 
6 
on small entities; 
7 
(2) a description and an estimate of the number 
8 
of small entities enrolled and participating in such 
9 
program or an explanation of why no such estimate 
10 
is available; 
11 
(3) the projected reporting, recordkeeping and 
12 
other compliance requirements of such program on 
13 
small entities; 
14 
(4) factors that impact small entities’ enroll15 
ment and participation in such program, including 
16 
access to appropriate technology, geography, entity 
17 
size, and class of entity; and 
18 
(5) the steps, if any, the Secretary of Homeland 
19 
Security has taken to minimize the economic impact 
20 
of participating in such program on small entities. 
21 


(b) DIRECT AND INDIRECT EFFECTS.—The report 
22 
shall cover, and treat separately, direct effects (such as 
23 
wages, time, and fees spent on compliance) and indirect 
24 
effects (such as the effect on cash flow, sales, and competi25 
tiveness). 

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111 

1 


(c) SPECIFIC CONTENTS.—The report shall provide 
2 
specific and separate details with respect to— 
3 


(1) small businesses (as defined in section 601 

4 


of title 5, United States Code) with fewer than 50 

5 


employees; and 
6 
(2) small entities operating in States that have 
7 
mandated use of the basic pilot program. 
8 
TITLE VIII—INTERIOR AND 
9 
ENVIRONMENT 
10 
DEPARTMENT OF THE INTERIOR 
11 
BUREAU OF LAND MANAGEMENT 
12 
CONSTRUCTION 
13 
(INCLUDING TRANSFERS OF FUNDS) 
14 
For an additional amount for ‘‘Construction’’, 
15 
$325,000,000, for priority road, bridge, and trail repair 
16 
or decommissioning, critical deferred maintenance 
17 
projects, facilities construction and renovation, hazardous 
18 
fuels reduction, and remediation of abandoned mine or 
19 
well sites: Provided, That funds may be transferred to 
20 
other appropriate accounts of the Bureau of Land man21 
agement: Provided further, That the amount set aside 
22 
from this appropriation pursuant to section 1106 of this 
23 
Act shall be not more than 5 percent instead of the per24 
centage specified in such section. 

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112 

1 


UNITED STATES FISH AND WILDLIFE SERVICE 

2 


CONSTRUCTION 

3 


(INCLUDING TRANSFER OF FUNDS) 

4 


For an additional amount for ‘‘Construction’’, 
5 
$300,000,000, for priority road and bridge repair and re6 
placement, and critical deferred maintenance and improve7 
ment projects on National Wildlife Refuges, National Fish 
8 
Hatcheries, and other Service properties: Provided, That 
9 
funds may be transferred to ‘‘Resource Management’’: 
10 
Provided further, That the amount set aside from this ap11 
propriation pursuant to section 1106 of this Act shall be 
12 
not more than 5 percent instead of the percentage speci13 
fied in such section. 
14 
NATIONAL PARK SERVICE 
15 
CONSTRUCTION 
16 
(INCLUDING TRANSFER OF FUNDS) 
17 
For an additional amount for ‘‘Construction’’, 
18 
$1,700,000,000, for projects to address critical deferred 
19 
maintenance needs within the National Park System, in20 
cluding roads, bridges and trails, and for other critical in21 
frastructure projects: Provided, That funds may be trans22 
ferred to ‘‘Operation of the National Park System’’: Pro23 
vided further, That $200,000,000 of these funds shall be 
24 
for projects related to the preservation and repair of his25 
torical and cultural resources within the National Park 

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1 
System: Provided further, That the amount set aside from 
2 
this appropriation pursuant to section 1106 of this Act 
3 
shall be not more than 5 percent instead of the percentage 
4 
specified in such section. 
5 


NATIONAL MALL REVITALIZATION FUND 
6 
For construction, improvements, repair, or replace7 
ment of facilities related to the revitalization of National 
8 
Park Service assets on the National Mall in Washington, 
9 
DC, $200,000,000, of which $100,000,000 shall only be 
10 
made available to the extent that funds are matched by 
11 
non-Federal contributions: Provided, That the amount set 
12 
aside from this appropriation pursuant to section 1106 of 
13 
this Act shall be not more than 5 percent instead of the 
14 
percentage specified in such section. 
15 
CENTENNIAL CHALLENGE 
16 
To carry out provisions of section 814(g) of Public 
17 
Law 104–333 relating to challenge cost share agreements, 
18 
$100,000,000, for National Park Service Centennial Chal19 
lenge signature projects and programs: Provided, That not 
20 
less than 50 percent of the total cost of each project or 
21 
program is derived from non-Federal sources in the form 
22 
of donated cash, assets, in-kind services, or a pledge of 
23 
donation guaranteed by an irrevocable letter of credit: Pro24 
vided further, That the amount set aside from this appro25 
priation pursuant to section 1106 of this Act shall be not 

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1 
more than 5 percent instead of the percentage specified 
2 
in such section. 
3 


UNITED STATES GEOLOGICAL SURVEY 

4 


SURVEYS, INVESTIGATIONS, AND RESEARCH 

5 


For an additional amount for ‘‘Surveys, Investiga6 
tions, and Research’’, $200,000,000, for repair and res7 
toration of facilities; equipment replacement and upgrades 
8 
including stream gages, and seismic and volcano moni9 
toring systems; national map activities; and other critical 
10 
deferred maintenance and improvement projects: Pro11 
vided, That the amount set aside from this appropriation 
12 
pursuant to section 1106 of this Act shall be not more 
13 
than 5 percent instead of the percentage specified in such 
14 
section. 
15 
BUREAU OF INDIAN AFFAIRS 
16 
CONSTRUCTION 
17 
(INCLUDING TRANSFER OF FUNDS) 
18 
For an additional amount for ‘‘Construction’’, 
19 
$500,000,000, for priority repair and replacement of 
20 
schools, detention centers, roads, bridges, employee hous21 
ing, and critical deferred maintenance projects: Provided, 
22 
That not less than $250,000,000 shall be used for new 
23 
and replacement schools and detention centers: Provided 
24 
further, That funds may be transferred to ‘‘Operation of 
25 
Indian Programs’’: Provided further, That the amount set 

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1 
aside from this appropriation pursuant to section 1106 of 
2 
this Act shall be not more than 5 percent instead of the 
3 
percentage specified in such section. 
4 


ENVIRONMENTAL PROTECTION AGENCY 

5 


HAZARDOUS SUBSTANCE SUPERFUND 
6 
For an additional amount for ‘‘Hazardous Substance 
7 
Superfund’’, $800,000,000, which shall be used for the 
8 
Superfund Remedial program: Provided, That amounts 
9 
available by law from this appropriation for management 
10 
and administration shall take the place of the set-aside 
11 
under section 1106 of this Act. 
12 
LEAKING UNDERGROUND STORAGE TANK TRUST FUND 
13 
PROGRAM 
14 
For an additional amount for ‘‘Leaking Underground 
15 
Storage Tank Trust Fund Program’’, to carry out leaking 
16 
underground storage tank cleanup activities authorized by 
17 
subtitle I of the Solid Waste Disposal Act, $200,000,000, 
18 
which shall be used to carry out leaking underground stor19 
age tank cleanup activities authorized by section 9003(h) 
20 
of the Solid Waste Disposal Act, except that such funds 
21 
shall not be subject to the State matching requirements 
22 
in section 9003(h)(7)(B): Provided, That amounts avail23 
able by law from this appropriation for management and 
24 
administration shall take the place of the set-aside under 
25 
section 1106 of this Act. 

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1 


STATE AND TRIBAL ASSISTANCE GRANTS 

2 


For an additional amount for ‘‘State and Tribal As3 
sistance Grants’’, $8,400,000,000, which shall be used as 
4 
follows: 
5 


(1) $6,000,000,000 shall be for capitalization 
6 
grants for the Clean Water State Revolving Funds 
7 
under title VI of the Federal Water Pollution Con8 
trol Act (33 U.S.C. 1381 et seq.), except that such 
9 
funds shall not be subject to the State matching re10 
quirements in paragraphs (2) and (3) of section 
11 
602(b) of such Act or to the Federal cost share limi12 
tations in section 202 of such Act: Provided, That 
13 
the amount set aside from this appropriation pursu14 
ant to section 1106 of this Act shall be not more 
15 
than 2 percent instead of the percentage specified in 
16 
such section: Provided further, That, notwith17 
standing the limitation on amounts specified in sec18 
tion 518(c) of the Federal Water Pollution Control 
19 
Act, up to a total of 1.5 percent of such funds may 
20 
be reserved by the Administrator of the Environ21 


mental Protection Agency for grants under section 

22 


518(c) of such Act: Provided further, That the re


23 


quirements of section 513 of such Act shall apply to 

24 


the construction of treatment works carried out in 

25 


whole or in part with assistance made available 

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1 


under this heading by a Clean Water State Revolv


2 


ing Fund under title VI of such Act, or with assist


3 


ance made available under section 205(m) of such 
4 
Act, or both: Provided further, That, notwith5 


standing the requirements of section 603(d) of such 
6 
Act, each State shall use 50 percent of the amount 
7 
of the capitalization grant received by the State 
8 
under title VI of such Act to provide assistance, in 
9 
the form of additional subsidization, including for10 
giveness of principal, negative interest loans, and 
11 
grants, to municipalities (as defined in section 502 
12 
of such Act) for projects that are included on the 
13 
State’s priority list established under section 603(g) 
14 
of such Act, of which 80 percent shall be for projects 
15 
to benefit municipalities that meet affordability cri16 
teria as determined by the Governor of the State 
17 
and 20 percent shall be for projects to address 
18 
water-efficiency goals, address energy-efficiency 
19 
goals, mitigate stormwater runoff, or encourage en20 
vironmentally sensitive project planning, design, and 
21 


construction, to the extent that there are sufficient 

22 


project applications eligible for such assistance. 

23 


(2) $2,000,000,000 shall be for capitalization 

24 


grants for the Drinking Water State Revolving 

25 


Funds under section 1452 of the Safe Drinking 

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1 


Water Act (42 U.S.C. 300j-12), except that such 

2 


funds shall not be subject to the State matching re


3 


quirements of section 1452(e) of such Act: Provided, 

4 


That the amount set aside from this appropriation 

5 


pursuant to section 1106 of this Act shall be not 
6 
more than 2 percent instead of the percentage speci7 
fied in such section: Provided further, That section 
8 
1452(k) of the Safe Drinking Water Act shall not 
9 
apply to such funds: Provided further, That the re10 
quirements of section 1450(e) of such Act (42 
11 
U.S.C. 300j-9(e)) shall apply to the construction 
12 
carried out in whole or part with assistance made 
13 
available under this heading by a Drinking Water 
14 
State Revolving fund under section 1452 of such 
15 
Act: Provided further, That, notwithstanding the re16 
quirements of section 1452(a)(2) of such Act, each 
17 
State shall use 50 percent of the amount of the cap18 
italization grant received by the State under section 
19 
1452 of such Act to provide assistance, in the form 
20 
of additional subsidization, including forgiveness of 
21 


principal, negative interest loans, and grants, to mu


22 


nicipalities (as defined in section 1401 of such Act) 

23 


for projects that are included on the State’s priority 

24 


list established under section 1452(b)(3) of such 
25 
Act. 

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119 

1 


(3) $300,000,000 shall be for grants under title 

2 


VII, Subtitle G of the Energy Policy Act of 2005: 

3 


Provided, That the amount set aside from this ap


4 


propriation pursuant to section 1106 of this Act 

5 


shall be not more than 3 percent instead of the per6 
centage specified in such section. 
7 
(4) $100,000,000 shall be to carry out section 
8 
104(k) of the Comprehensive Environmental Re9 
sponse, Compensation, and Liability Act of 1980: 
10 
Provided, That the amount set aside from this ap11 
propriation pursuant to section 1106 of this Act 
12 
shall be not more than 3 percent instead of the per13 
centage specified in such section. 
14 
DEPARTMENT OF AGRICULTURE 
15 
FOREST SERVICE 
16 
CAPITAL IMPROVEMENT AND MAINTENANCE 
17 
(INCLUDING TRANSFER OF FUNDS) 
18 
For an additional amount for ‘‘Capital Improvement 
19 
and Maintenance’’, $650,000,000, for reconstruction, cap20 
ital improvement, decommissioning, and maintenance of 
21 
forest roads, bridges and trails; alternative energy tech22 
nologies, energy efficiency enhancements and deferred 
23 
maintenance at Federal facilities; and for remediation of 
24 
abandoned mine sites, removal of fish passage barriers, 
25 
and other critical habitat, forest improvement and water-

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1 
shed enhancement projects on Federal lands and waters: 
2 
Provided, That funds may be transferred to ‘‘National 
3 
Forest System’’: Provided further, That the amount set 
4 
aside from this appropriation pursuant to section 1106 of 
5 
this Act shall be not more than 5 percent instead of the 
6 
percentage specified in such section. 
7 
WILDLAND FIRE MANAGEMENT 
8 
(INCLUDING TRANSFERS OF FUNDS) 
9 
For an additional amount for ‘‘Wildland Fire Man10 
agement’’, $850,000,000, of which $300,000,000 is for 
11 
hazardous fuels reduction, forest health, wood to energy 
12 
grants and rehabilitation and restoration activities on 
13 
Federal lands, and of which $550,000,000 is for State fire 
14 
assistance hazardous fuels projects, volunteer fire assist15 
ance, cooperative forest health projects, city forest en16 
hancements, and wood to energy grants on State and pri17 
vate lands: Provided, That amounts in this paragraph may 
18 
be transferred to ‘‘State and Private Forestry’’ and ‘‘Na19 
tional Forest System’’: Provided further, That the amount 
20 
set aside from this appropriation pursuant to section 1106 
21 
of this Act shall be not more than 5 percent instead of 
22 
the percentage specified in such section. 

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121 

1 


DEPARTMENT OF HEALTH AND HUMAN 

2 


SERVICES 

3 


INDIAN HEALTH SERVICE 

4 


INDIAN HEALTH FACILITIES 

5 


For an additional amount for ‘‘Indian Health Facili6 
ties’’, $550,000,000, for priority health care facilities con7 
struction projects and deferred maintenance, and the pur8 
chase of equipment and related services, including but not 
9 
limited to health information technology: Provided, That 
10 
notwithstanding any other provision of law, the amounts 
11 
available under this paragraph shall be allocated at the 
12 
discretion of the Director of the Indian Health Service: 
13 
Provided further, That the amount set aside from this ap14 
propriation pursuant to section 1106 of this Act shall be 
15 
not more than 5 percent instead of the percentage speci16 
fied in such section. 
17 
OTHER RELATED AGENCIES 
18 
SMITHSONIAN INSTITUTION 
19 
FACILITIES CAPITAL 
20 
(INCLUDING TRANSFER OF FUNDS) 
21 


For an additional amount for ‘‘Facilities Capital’’, 
22 
$150,000,000, for deferred maintenance projects, and for 
23 
repair, revitalization, and alteration of facilities owned or 
24 
occupied by the Smithsonian Institution, by contract or 
25 
otherwise, as authorized by section 2 of the Act of August 

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1 
22, 1949 (63 Stat. 623): Provided, That funds may be 
2 
transferred to ‘‘Salaries and Expenses’’: Provided further, 
3 
That the amount set aside from this appropriation pursu4 
ant to section 1106 of this Act shall be not more than 
5 
5 percent instead of the percentage specified in such sec6 
tion. 
7 
NATIONAL FOUNDATION ON THE ARTS AND THE 
8 
HUMANITIES 
9 
NATIONAL ENDOWMENT FOR THE ARTS 
10 
GRANTS AND ADMINISTRATION 
11 
For an additional amount for ‘‘Grants and Adminis12 
tration’’, $50,000,000, to be distributed in direct grants 
13 
to fund arts projects and activities which preserve jobs in 
14 
the non-profit arts sector threatened by declines in philan15 
thropic and other support during the current economic 
16 
downturn: Provided, That 40 percent of such funds shall 
17 
be distributed to State arts agencies and regional arts or18 
ganizations in a manner similar to the agency’s current 
19 
practice and 60 percent of such funds shall be for competi20 
tively selected arts projects and activities according to sec21 
tions 2 and 5(c) of the National Foundation on the Arts 
22 
and Humanities Act of 1965 (20 U.S.C. 951, 954(c)): 
23 
Provided further, That matching requirements under sec24 
tion 5(e) of such Act shall be waived: Provided further, 
25 
That the amount set aside from this appropriation pursu


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1 
ant to section 1106 of this Act shall be not more than 
2 
5 percent instead of the percentage specified in such sec3 
tion. 
4 
TITLE IX—LABOR, HEALTH AND 
5 


HUMAN SERVICES, AND EDU6 
CATION 
7 
Subtitle A—Labor 
8 
DEPARTMENT OF LABOR 
9 
EMPLOYMENT AND TRAINING ADMINISTRATION 
10 
TRAINING AND EMPLOYMENT SERVICES 
11 
For an additional amount for ‘‘Training and Employ12 
ment Services’’ for activities under the Workforce Invest13 
ment Act of 1998 (‘‘WIA’’), $4,000,000,000, which shall 
14 
be available for obligation on the date of enactment of this 
15 
Act, as follows: 
16 
(1) $500,000,000 for grants to the States for 
17 
adult employment and training activities; 
18 
(2) $1,200,000,000 for grants to the States for 
19 
youth activities, including summer jobs for youth: 
20 
Provided, That the work readiness performance indi21 


cator described in section 136(b)(2)(A)(ii)(I) of the 

22 


WIA shall be the only measure of performance used 

23 


to assess the effectiveness of summer jobs for youth 

24 


provided with such funds: Provided further, That 

25 


with respect to the youth activities provided with 

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124 

1 


such funds, section 101(13)(A) of the WIA shall be 

2 


applied by substituting ‘‘age 24’’ for ‘‘age 21’’: Pro


3 


vided further, That no portion of the additional 

4 


funds provided herein shall be reserved to carry out 

5 


section 127(b)(1)(A) of the WIA: Provided further, 
6 
That for purposes of section 127(b)(1)(C)(iv) of the 
7 
WIA, such funds shall be allotted as if the total 
8 
amount of funding available for youth activities in 
9 
the fiscal year does not exceed $1,000,000,000; 
10 
(3) $1,000,000,000 for grants to the States for 
11 
dislocated worker employment and training activi12 
ties; 
13 
(4) $500,000,000 for the dislocated workers as14 
sistance national reserve to remain available for 
15 
Federal obligation through June 30, 2010: Provided, 
16 
That such funds shall be made available for grants 
17 
only to eligible entities that serve areas of high un18 
employment or high poverty and only for the pur19 
poses described in subsection 173(a)(1) of the WIA: 
20 
Provided further, That the Secretary of Labor shall 
21 


ensure that applicants for such funds demonstrate 

22 


how income support, child care, and other supportive 

23 


services necessary for an individual’s participation in 

24 


job training will be provided; 

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1 
(5) $50,000,000 for YouthBuild activities, 
2 


which shall remain available for Federal obligation 

3 


through June 30, 2010; and 

4 


(6) $750,000,000 for a program of competitive 

5 


grants for worker training and placement in high 
6 
growth and emerging industry sectors: Provided, 
7 
That $500,000,000 shall be for research, labor ex8 
change and job training projects that prepare work9 
ers for careers in the energy efficiency and renew10 
able energy industries specified in section 
11 
171(e)(1)(B)(ii) of the WIA (as amended by the 
12 
Green Jobs Act of 2007): Provided further, That in 
13 
awarding grants from those funds not designated in 
14 
the preceding proviso, the Secretary of Labor shall 
15 
give priority to projects that prepare workers for ca16 
reers in the health care sector: Provided further, 
17 
That the provisions of section 1103 of this Act shall 
18 
not apply to this appropriation: 
19 
Provided, That the additional funds provided to States 
20 
under this heading are not subject to section 191(a) of 
21 
the WIA: Provided further, That notwithstanding section 
22 
1106 of this Act, there shall be no amount set aside from 
23 
the appropriations made in subsections (1) through (3) 
24 
under this heading and the amount set aside for sub-

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1 
sections (4) through (6) shall be up to 1 percent instead 
2 
of the percentage specified in such section. 
3 


COMMUNITY SERVICE EMPLOYMENT FOR OLDER 

4 


AMERICANS 

5 


For an additional amount for ‘‘Community Service 
6 
Employment for Older Americans’’ to carry out title V of 
7 
the Older Americans Act of 1965, $120,000,000, which 
8 
shall be available for obligation on the date of enactment 
9 
of this Act: Provided, That funds shall be allotted within 
10 
30 days of such enactment to current grantees in propor11 
tion to their allotment in program year 2008. 
12 
STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT 
13 
SERVICE OPERATIONS 
14 
For an additional amount for ‘‘State Unemployment 
15 
Insurance and Employment Service Operations’’ for 
16 
grants to the States in accordance with section 6 of the 
17 
Wagner-Peyser Act, $500,000,000, which may be ex18 
pended from the Employment Security Administration Ac19 
count in the Unemployment Trust Fund, and which shall 
20 
be available for obligation on the date of enactment of this 
21 
Act: Provided, That such funds shall remain available to 
22 
the States through September 30, 2010: Provided further, 
23 
That, with respect to such funds, section 6(b)(1) of such 
24 
Act shall be applied by substituting ‘‘one-third’’ for ‘‘two25 
thirds’’ in subparagraph (A), with the remaining one-third 

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1 
of the sums to be allotted in accordance with section 
2 
132(b)(2)(B)(ii)(III) of the Workforce Investment Act of 
3 
1998: Provided further, That not less than $250,000,000 
4 
of the amount provided under this heading shall be used 
5 
by States for reemployment services for unemployment in6 
surance claimants (including the integrated Employment 
7 
Service and Unemployment Insurance information tech8 
nology required to identify and serve the needs of such 
9 
claimants): Provided further, That the Secretary of Labor 
10 
shall establish planning and reporting procedures nec11 
essary to provide oversight of funds used for reemploy12 
ment services. 
13 
DEPARTMENTAL MANAGEMENT 
14 
SALARIES AND EXPENSES 
15 
(INCLUDING TRANSFER OF FUNDS) 
16 
For an additional amount for ‘‘Departmental Man17 
agement’’, $80,000,000, for the enforcement of worker 
18 
protection laws and regulations, oversight, and coordina19 
tion activities related to the infrastructure and unemploy20 
ment insurance investments in this Act: Provided, That 
21 
the Secretary of Labor may transfer such sums as nec22 
essary to ‘‘Employment and Standards Administration’’, 
23 
‘‘Occupational Safety and Health Administration’’, and 
24 
‘‘Employment and Training Administration—Program 
25 
Administration’’ for enforcement, oversight, and coordina


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1 
tion activities: Provided further, That the provisions of sec2 
tion 1106 of this Act shall not apply to this appropriation. 
3 


OFFICE OF JOB CORPS 

4 


For an additional amount for ‘‘Office of Job Corps’’, 
5 
$300,000,000, for construction, rehabilitation and acquisi6 
tion of Job Corps Centers, which shall be available upon 
7 
the date of enactment of this Act and remain available 
8 
for obligation through June 30, 2010: Provided, That sec9 
tion 1552(a) of title 31, United States Code shall not 
10 
apply to up to 30 percent of such funds, if such funds 
11 
are used for a multi-year lease agreement that will result 
12 
in construction activities that can commence within 120 
13 
days of enactment of this Act: Provided further, That not14 
withstanding section 3324(a) of title 31, United States 
15 
Code, the funds referred to in the preceding proviso may 
16 
be used for advance, progress, and other payments: Pro17 
vided further, That the Secretary of Labor may transfer 
18 
up to 15 percent of such funds to meet the operational 
19 
needs of such centers, which may include the provision of 
20 
additional training for careers in the energy efficiency and 
21 
renewable energy industries: Provided further, That pri22 
ority should be given to activities that can commence 
23 
promptly following enactment and to those projects that 
24 
will create the greatest impact on the energy efficiency of 
25 
Job Corps facilities: Provided further, That the Secretary 

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1 
shall provide to the Committees on Appropriations of the 
2 
House of Representatives and the Senate a report on the 
3 
actual obligations, expenditures, and unobligated balances 
4 
for each activity funded under this heading not later than 
5 
September 30, 2009 and quarterly thereafter as long as 
6 
funding provided under this heading is available for obli7 
gation or expenditure. 
8 
GENERAL PROVISIONS, THIS SUBTITLE 
9 
SEC. 9101. ELIGIBLE EMPLOYEES IN THE RECREATIONAL 
10 
MARINE INDUSTRY. 
11 
Section 2(3)(F) of the Longshore and Harbor Work12 
ers’ Compensation Act (33 U.S.C. 902(3)(F)) is amend13 
ed— 
14 
(1) by striking ‘‘, repair, or dismantle’’; and 
15 
(2) by striking the semicolon and inserting ‘‘, or 
16 
individuals employed to repair any recreational ves17 
sel, or to dismantle any part of a recreational vessel 
18 
in connection with the repair of such vessel;’’. 
19 
Subtitle B—Health and Human 
20 
Services 
21 


DEPARTMENT OF HEALTH AND HUMAN 

22 


SERVICES 

23 


HEALTH RESOURCES AND SERVICES 

24 


For an additional amount for ‘‘Health Resources and 
25 
Services’’, $2,188,000,000 which shall be used as follows: 

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1 


(1) $500,000,000, of which $250,000,000 shall 

2 


not be available until October 1, 2009, shall be for 

3 


grants to health centers authorized under section 

4 


330 of the Public Health Service Act (‘‘PHS Act’’); 

5 


(2) $1,000,000,000 shall be available for ren6 
ovation and repair of health centers authorized 
7 
under section 330 of the PHS Act and for the acqui8 
sition by such centers of health information tech9 
nology systems: Provided, That the timeframe for 
10 
the award of grants pursuant to section 1103(b) of 
11 
this Act shall not be later than 180 days after the 
12 
date of enactment of this Act instead of the time13 
frame specified in such section; 
14 
(3) $88,000,000 shall be for fit-out and other 
15 
costs related to moving into a facility to be secured 
16 
through a competitive lease procurement to replace 
17 
or renovate a headquarters building for Public 
18 
Health Service agencies and other components of the 
19 
Department of Health and Human Services; and 
20 
(4) $600,000,000, of which $300,000,000 shall 
21 


not be available until October 1, 2009, shall be for 

22 


the training of nurses and primary care physicians 

23 


and dentists as authorized under titles VII and VIII 

24 


of the PHS Act, for the provision of health care per


25 


sonnel under the National Health Service Corps pro-

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131 

1 


gram authorized under title III of the PHS Act, and 

2 


for the patient navigator program authorized under 

3 


title III of the PHS Act. 

4 


CENTERS FOR DISEASE CONTROL AND PREVENTION 

5 


DISEASE CONTROL, RESEARCH, AND TRAINING 
6 
For an additional amount for ‘‘Disease Control, Re7 
search, and Training’’ for equipment, construction, and 
8 
renovation of facilities, including necessary repairs and 
9 
improvements to leased laboratories, $462,000,000: Pro10 
vided, That notwithstanding any other provision of law, 
11 
the Centers for Disease Control and Prevention may 
12 
award a single contract or related contracts for develop13 
ment and construction of facilities that collectively include 
14 
the full scope of the project: Provided further, That the 
15 
solicitation and contract shall contain the clause ‘‘avail16 
ability of funds’’ found at 48 CFR 52.232-18: Provided 
17 
further, That in accordance with applicable authorities, 
18 
policies, and procedures, the Centers for Disease Control 
19 
and Prevention shall acquire real property, and make any 
20 
necessary improvements thereon, to relocate and consoli21 
date property and facilities of the National Institute for 
22 
Occupational Safety and Health. 

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1 


NATIONAL INSTITUTES OF HEALTH 

2 


NATIONAL CENTER FOR RESEARCH RESOURCES 

3 


For an additional amount for ‘‘National Center for 
4 
Research Resources’’, $1,500,000,000 for grants or con5 
tracts under section 481A of the Public Health Service 
6 
Act to renovate or repair existing non-Federal research fa7 
cilities: Provided, That sections 481A(c)(1)(B)(ii), para8 
graphs (1), (3), and (4) of section 481A(e), and section 
9 
481B of such Act shall not apply to the use of such funds: 
10 
Provided further, That the references to ‘‘20 years’’ in sub11 
sections (c)(1)(B)(i) and (f) of section 481A of such Act 
12 
are deemed to be references to ‘‘10 years’’ for purposes 
13 
of using such funds: Provided further, That the National 
14 
Center for Research Resources may also use such funds 
15 
to provide, under the authority of section 301 and title 
16 
IV of such Act, shared instrumentation and other capital 
17 
research equipment to recipients of grants and contracts 
18 
under section 481A of such Act and other appropriate en19 
tities: Provided further, That the Director of the Center 
20 
shall provide to the Committees on Appropriations of the 
21 
House of Representatives and the Senate an annual report 
22 
indicating the number of institutions receiving awards of 
23 
a grant or contract under section 481A of such Act, the 
24 
proposed use of the funding, the average award size, a 
25 
list of grant or contract recipients, and the amount of each 

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1 
award: Provided further, That the Center, in obligating 
2 
such funds, shall require that each entity that applies for 
3 
a grant or contract under section 481A for any project 
4 
shall include in its application an assurance described in 
5 
section 1621(b)(1)(I) of the Public Health Service Act: 
6 
Provided further, That the Center shall give priority in the 
7 
award of grants and contracts under section 481A of such 
8 
Act to those applications that are expected to generate de9 
monstrable energy-saving or beneficial environmental ef10 
fects: Provided further, That the provisions of section 1103 
11 
of this Act shall not apply to the peer-reviewed grants 
12 
awarded under this heading. 
13 
OFFICE OF THE DIRECTOR 
14 
(INCLUDING TRANSFER OF FUNDS) 
15 
For an additional amount for ‘‘Office of the Direc16 
tor’’, $1,500,000,000, of which $750,000,000 shall not be 
17 
available until October 1, 2009: Provided, That such funds 
18 
shall be transferred to the Institutes and Centers of the 
19 
National Institutes of Health and to the Common Fund 
20 
established under section 402A(c)(1) of the Public Health 
21 
Service Act in proportion to the appropriations otherwise 
22 
made to such Institutes, Centers, and Common Fund for 
23 
fiscal year 2009: Provided further, That these funds shall 
24 
be used to support additional scientific research and shall 
25 
be merged with and be available for the same purposes 

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1 
as the appropriation or fund to which transferred: Pro2 
vided further, That this transfer authority is in addition 
3 
to any other transfer authority available to the National 
4 
Institutes of Health: Provided further, That none of these 
5 
funds may be transferred to ‘‘National Institutes of 
6 
Health—Buildings and Facilities’’, the Center for Sci7 
entific Review, the Center for Information Technology, the 
8 
Clinical Center, the Global Fund for HIV/AIDS, Tuber9 
culosis and Malaria, or the Office of the Director (except 
10 
for the transfer to the Common Fund): Provided further, 
11 
That the provisions of section 1103 of this Act shall not 
12 
apply to the peer-reviewed grants awarded under this 
13 
heading. 
14 
BUILDINGS AND FACILITIES 
15 
For an additional amount for ‘‘Buildings and Facili16 
ties’’, $500,000,000, to fund high priority repair and im17 
provement projects for National Institutes of Health facili18 
ties on the Bethesda, Maryland campus and other agency 
19 
locations. 
20 
AGENCY FOR HEALTHCARE RESEARCH AND QUALITY 
21 


HEALTHCARE RESEARCH AND QUALITY 

22 


(INCLUDING TRANSFER OF FUNDS) 

23 


For an additional amount for ‘‘Healthcare Research 
24 
and Quality’’ to carry out titles III and IX of the Public 
25 
Health Service Act, part A of title XI of the Social Secu


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1 
rity Act, and section 1013 of the Medicare Prescription 
2 
Drug, Improvement, and Modernization Act of 2003, 
3 
$700,000,000 for comparative effectiveness research: Pro4 
vided, That of the amount appropriated in this paragraph, 
5 
$400,000,000 shall be transferred to the Office of the Di6 
rector of the National Institutes of Health (‘‘Office of the 
7 
Director’’) to conduct or support comparative effectiveness 
8 
research: Provided further, That funds transferred to the 
9 
Office of the Director may be transferred to the national 
10 
research institutes and national centers of the National 
11 
Institutes of Health and to the Common Fund established 
12 
under section 402A(c)(1) of the Public Health Service Act: 
13 
Provided further, That this transfer authority is in addi14 
tion to any other transfer authority available to the Na15 
tional Institutes of Health: Provided further, That the pro16 
visions of section 1103 of this Act shall not apply to the 
17 
peer-reviewed grants awarded under this paragraph: Pro18 
vided further, That the amount set aside from this appro19 
priation pursuant to section 1106 of this Act shall be not 
20 
more than 1 percent instead of the percentage specified 
21 
in such section. 
22 


In addition, $400,000,000 shall be available for com23 
parative effectiveness research to be allocated at the dis24 
cretion of the Secretary of Health and Human Services 
25 
(‘‘Secretary’’): Provided, That the funding appropriated in 

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1 
this paragraph shall be used to accelerate the development 
2 
and dissemination of research assessing the comparative 
3 
effectiveness of health care treatments and strategies, in4 
cluding through efforts that: (1) conduct, support, or syn5 
thesize research that compares the clinical outcomes, ef6 
fectiveness, and appropriateness of items, services, and 
7 
procedures that are used to prevent, diagnose, or treat dis8 
eases, disorders, and other health conditions; and (2) en9 
courage the development and use of clinical registries, clin10 
ical data networks, and other forms of electronic health 
11 
data that can be used to generate or obtain outcomes data: 
12 
Provided further, That the Secretary shall enter into a 
13 
contract with the Institute of Medicine, for which no more 
14 
than $1,500,000 shall be made available from funds pro15 
vided in this paragraph, to produce and submit a report 
16 
to the Congress and the Secretary by not later than June 
17 
30, 2009, that includes recommendations on the national 
18 
priorities for comparative effectiveness research to be con19 
ducted or supported with the funds provided in this para20 
graph and that considers input from stakeholders: Pro21 
vided further, That the Secretary shall consider any rec22 
ommendations of the Federal Coordinating Council for 
23 
Comparative Effectiveness Research established by section 
24 
9201 of this Act and any recommendations included in 
25 
the Institute of Medicine report pursuant to the preceding 

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1 
proviso in designating activities to receive funds provided 
2 
in this paragraph and may make grants and contracts 
3 
with appropriate entities, which may include agencies 
4 
within the Department of Health and Human Services and 
5 
other governmental agencies, as well as private sector enti6 
ties, that have demonstrated experience and capacity to 
7 
achieve the goals of comparative effectiveness research: 
8 
Provided further, That the Secretary shall publish infor9 
mation on grants and contracts awarded with the funds 
10 
provided under this heading within a reasonable time of 
11 
the obligation of funds for such grants and contracts and 
12 
shall disseminate research findings from such grants and 
13 
contracts to clinicians, patients, and the general public, 
14 
as appropriate: Provided further, That, to the extent fea15 
sible, the Secretary shall ensure that the recipients of the 
16 
funds provided by this paragraph offer an opportunity for 
17 
public comment on the research: Provided further, That 
18 
the provisions of section 1103 of this Act shall not apply 
19 
to the peer-reviewed grants awarded under this paragraph: 
20 
Provided further, That the Secretary shall provide the 
21 
Committees on Appropriations of the House of Represent22 
atives and the Senate, the Committee on Energy and Com23 
merce and the Committee on Ways and Means of the 
24 
House of Representatives, and the Committee on Health, 
25 
Education, Labor, and Pensions and the Committee on Fi


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1 
nance of the Senate with an annual report on the research 
2 
conducted or supported through the funds provided under 
3 
this heading: Provided further, That the Secretary, jointly 
4 
with the Directors of the Agency for Healthcare Research 
5 
and Quality and the National Institutes of Health, shall 
6 
provide the Committees on Appropriations of the House 
7 
of Representatives and the Senate a fiscal year 2009 oper8 
ating plan for the funds appropriated under this heading 
9 
prior to making any Federal obligations of such funds in 
10 
fiscal year 2009, but not later than 90 days after the date 
11 
of enactment of this Act, and a fiscal year 2010 operating 
12 
plan for such funds prior to making any Federal obliga13 
tions of such funds in fiscal year 2010, but not later than 
14 
November 1, 2009, that detail the type of research being 
15 
conducted or supported, including the priority conditions 
16 
addressed; and specify the allocation of resources within 
17 
the Department of Health and Human Services: Provided 
18 
further, That the Secretary jointly with the Directors of 
19 
the Agency for Healthcare Research and Quality and the 
20 
National Institutes of Health, shall provide to the Com21 
mittees on Appropriations of the House of Representatives 
22 
and the Senate a report on the actual obligations, expendi23 
tures, and unobligated balances for each activity funded 
24 
under this heading not later than November 1, 2009, and 
25 
every 6 months thereafter as long as funding provided 

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1 
under this heading is available for obligation or expendi2 
ture. 
3 


ADMINISTRATION FOR CHILDREN AND FAMILIES 

4 


LOW-INCOME HOME ENERGY ASSISTANCE 

5 


For an additional amount for ‘‘Low-Income Home 
6 
Energy Assistance’’ for making payments under section 
7 
2602(b) and section 2602(d) of the Low-Income Home 
8 
Energy Assistance Act of 1981, $1,000,000,000, which 
9 
shall become available on October 1, 2009: Provided, That 
10 
the provisions of section 1106 of this Act shall not apply 
11 
to this appropriation. 
12 
PAYMENTS TO STATES FOR THE CHILD CARE AND 
13 
DEVELOPMENT BLOCK GRANT 
14 
For an additional amount for ‘‘Payments to States 
15 
for the Child Care and Development Block Grant’’, 
16 
$2,000,000,000, of which $1,000,000,000 shall become 
17 
available on October 1, 2009, which shall be used to sup18 
plement, not supplant State general revenue funds for 
19 
child care assistance for low-income families: Provided, 
20 
That the provisions of section 1106 of this Act shall not 
21 
apply to this appropriation. 
22 


CHILDREN AND FAMILIES SERVICES PROGRAMS 

23 


For an additional amount for ‘‘Children and Families 
24 
Services Programs’’, $3,200,000,000, which shall be used 
25 
as follows: 

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1 


(1) $1,000,000,000 for carrying out activities 

2 


under the Head Start Act, of which $500,000,000 

3 


shall become available on October 1, 2009; 

4 


(2) $1,100,000,000 for expansion of Early 

5 


Head Start programs, as described in section 645A 
6 
of the Head Start Act, of which $550,000,000 shall 
7 
become available on October 1, 2009: Provided, That 
8 
of the funds provided in this sentence, up to 10 per9 
cent shall be available for the provision of training 
10 
and technical assistance to such programs consistent 
11 
with section 645A(g)(2) of such Act, and up to 3 
12 
percent shall be available for monitoring the oper13 
ation of such programs consistent with section 641A 
14 
of such Act: Provided further, That the preceding 
15 
proviso shall apply to this appropriation in lieu of 
16 
the provisions of section 1106 of this Act: Provided 
17 
further, That the provisions of section 1103 of this 
18 
Act shall not apply to this appropriation; 
19 
(3) $1,000,000,000 for carrying out activities 
20 
under sections 674 through 679 of the Community 
21 


Services Block Grant Act, of which $500,000,000 

22 


shall become available on October 1, 2009, and of 

23 


which no part shall be subject to paragraphs (2) and 

24 


(3) of section 674(b) of such Act: Provided, That 

25 


notwithstanding section 675C(a)(1) of such Act, 100 

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1 


percent of the funds made available to a State from 

2 


this additional amount shall be distributed to eligible 

3 


entities as defined in section 673(1) of such Act: 

4 


Provided further, That for services furnished under 

5 


such Act during fiscal years 2009 and 2010, States 
6 
may apply the last sentence of section 673(2) of 
7 
such Act by substituting ‘‘200 percent’’ for ‘‘125 
8 
percent’’: Provided further, That the provisions of 
9 
section 1106 of this Act shall not apply to this ap10 
propriation; and 
11 
(4) $100,000,000 for carrying out activities 
12 
under section 1110 of the Social Security Act, of 
13 
which $50,000,000 shall become available on Octo14 
ber 1, 2009: Provided, That the Secretary of Health 
15 
and Human Services shall distribute such amount 
16 
under the Compassion Capital Fund to eligible faith17 
based and community organizations: Provided fur18 
ther, That the provisions of section 1106 of this Act 
19 
shall not apply to this appropriation. 
20 
ADMINISTRATION ON AGING 
21 


AGING SERVICES PROGRAMS 

22 


For an additional amount for ‘‘Aging Services Pro23 
grams’’ under section 311, and subparts 1 and 2 of part 
24 
C, of title III of the Older Americans Act of 1965, 
25 
$200,000,000, of which $100,000,000 shall become avail-

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1 
able on October 1, 2009: Provided, That the provisions 
2 
of section 1106 of this Act shall not apply to this appro3 
priation. 
4 


OFFICE OF THE SECRETARY 

5 


OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH 
6 
INFORMATION TECHNOLOGY 
7 
(INCLUDING TRANSFER OF FUNDS) 
8 
For an additional amount for ‘‘Office of the National 
9 
Coordinator for Health Information Technology’’ to carry 
10 
out section 9202 of this Act, $2,000,000,000, to remain 
11 
available until expended: Provided, That of such amount, 
12 
the Secretary of Health and Human Services shall trans13 
fer $20,000,000 to the Director of the National Institute 
14 
of Standards and Technology in the Department of Com15 
merce for continued work on advancing health care infor16 
mation enterprise integration through activities such as 
17 
technical standards analysis and establishment of con18 
formance testing infrastructure, so long as such activities 
19 
are coordinated with the Office of the National Coordi20 
nator for Health Information Technology: Provided fur21 
ther, That the provisions of section 1103 of this Act shall 
22 
not apply to this appropriation: Provided further, That the 
23 
amount set aside from this appropriation pursuant to sec24 
tion 1106 of this Act shall be 0.25 percent instead of the 
25 
percentage specified in such section: Provided further, 

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1 
That funds available under this heading shall become 
2 
available for obligation only upon submission of an annual 
3 
operating plan by the Secretary to the Committees on Ap4 
propriations of the House of Representatives and the Sen5 
ate: Provided further, That the fiscal year 2009 operating 
6 
plan shall be provided not later than 90 days after enact7 
ment of this Act and that subsequent annual operating 
8 
plans shall be provided not later than November 1 of each 
9 
year: Provided further, That these operating plans shall 
10 
describe how expenditures are aligned with the specific ob11 
jectives, milestones, and metrics of the Federal Health In12 
formation Technology Strategic Plan, including any subse13 
quent updates to the Plan; the allocation of resources 
14 
within the Department of Health and Human Services and 
15 
other Federal agencies; and the identification of programs 
16 
and activities that are supported: Provided further, That 
17 
the Secretary shall provide to the Committees on Appro18 
priations of the House of Representatives and the Senate 
19 
a report on the actual obligations, expenditures, and unob20 
ligated balances for each major set of activities not later 
21 
than November 1, 2009, and every 6 months thereafter 
22 
as long as funding provided under this heading is available 
23 
for obligation or expenditure: Provided further, That the 
24 
Comptroller General of the United States shall review on 
25 
an annual basis the expenditures from funds provided 

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1 
under this heading to determine if such funds are used 
2 
in a manner consistent with the purpose and requirements 
3 
under this heading. 
4 


PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY 

5 


FUND 
6 
(INCLUDING TRANSFER OF FUNDS) 
7 
For an additional amount for ‘‘Public Health and So8 
cial Services Emergency Fund’’ to support advanced re9 
search and development pursuant to section 319L of the 
10 
Public Health Service Act, $430,000,000: Provided, That 
11 
the provisions of section 1103 of this Act shall not apply 
12 
to this appropriation. 
13 
For an additional amount for ‘‘Public Health and So14 
cial Services Emergency Fund’’ to prepare for and re15 
spond to an influenza pandemic, including the develop16 
ment and purchase of vaccine, antivirals, necessary med17 
ical supplies, diagnostics, and other surveillance tools, 
18 
$420,000,000: Provided, That the provisions of section 
19 
1103 of this Act shall not apply to this appropriation: Pro20 
vided further, That products purchased with these funds 
21 
may, at the discretion of the Secretary of Health and 
22 
Human Services (‘‘Secretary’’), be deposited in the Stra23 
tegic National Stockpile: Provided further, That notwith24 
standing section 496(b) of the Public Health Service Act, 
25 
funds may be used for the construction or renovation of 

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1 
privately owned facilities for the production of pandemic 
2 
influenza vaccine and other biologics, where the Secretary 
3 
finds such a contract necessary to secure sufficient sup4 
plies of such vaccines or biologics: Provided further, That 
5 
funds appropriated in this paragraph may be transferred 
6 
to other appropriation accounts of the Department of 
7 
Health and Human Services, as determined by the Sec8 
retary to be appropriate, to be used for the purposed speci9 
fied in this sentence. 
10 
For an additional amount for ‘‘Public Health and So11 
cial Services Emergency Fund’’ to improve information 
12 
technology security at the Department of Health and 
13 
Human Services, $50,000,000: Provided, That the Sec14 
retary shall prepare and submit a report by not later than 
15 
November 1, 2009, and by not later than 15 days after 
16 
the end of each month thereafter, updating the status of 
17 
actions taken and funds obligated in this and previous ap18 
propriations Acts for pandemic influenza preparedness 
19 
and response activities, biomedical advanced research and 
20 
development activities, Project BioShield, and Cyber Secu21 
rity. 
22 


PREVENTION AND WELLNESS FUND 

23 


(INCLUDING TRANSFER OF FUNDS) 

24 


For necessary expenses for a ‘‘Prevention and 
25 
Wellness Fund’’ to be administered through the Depart-

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1 
ment of Health and Human Services Office of the Sec2 
retary, $3,000,000,000: Provided, That the provisions of 
3 
section 1103 of this Act shall not apply to this appropria4 
tion: Provided further, That of the amount appropriated 
5 
under this heading not less than $2,350,000,000 shall be 
6 
transferred to the Centers for Disease Control and Pre7 
vention as follows: 
8 
(1) not less than $954,000,000 shall be used as 
9 
an additional amount to carry out the immunization 
10 
program authorized by section 317(a), (j), and 
11 
(k)(1) of the Public Health Service Act (‘‘section 
12 
317 immunization program’’), of which 
13 
$649,900,000 shall be available on October 1, 2009; 
14 
(2) not less than $296,000,000 shall be used as 
15 
an additional amount to carry out Part A of title 
16 
XIX of the Public Health Service Act, of which 
17 
$148,000,000 shall be available on October 1, 2009; 
18 
(3) not less than $545,000,000 shall be used as 
19 
an additional amount to carry out chronic disease, 
20 
health promotion, and genomics programs, as jointly 
21 


determined by the Secretary of Health and Human 

22 


Services (‘‘Secretary’’) and the Director of the Cen


23 


ters for Disease Control and Prevention (‘‘Direc24 
tor’’); 

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1 


(4) not less than $335,000,000 shall be used as 

2 


an additional amount to carry out domestic HIV/ 

3 


AIDS, viral hepatitis, sexually-transmitted diseases, 

4 


and tuberculosis prevention programs, as jointly de


5 


termined by the Secretary and the Director; 
6 
(5) not less than $60,000,000 shall be used as 
7 
an additional amount to carry out environmental 
8 
health programs, as jointly determined by the Sec9 
retary and the Director; 
10 
(6) not less than $50,000,000 shall be used as 
11 
an additional amount to carry out injury prevention 
12 
and control programs, as jointly determined by the 
13 
Secretary and the Director; 
14 
(7) not less than $30,000,000 shall be used as 
15 
an additional amount for public health workforce de16 
velopment activities, as jointly determined by the 
17 
Secretary and the Director; 
18 
(8) not less than $40,000,000 shall be used as 
19 
an additional amount for the National Institute for 
20 
Occupational Safety and Health to carry out re21 


search activities within the National Occupational 

22 


Research Agenda; and 

23 


(9) not less than $40,000,000 shall be used as 

24 


an additional amount for the National Center for 

25 


Health Statistics: 

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1 
Provided further, That of the amount appropriated under 
2 
this heading not less than $150,000,000 shall be available 
3 
for an additional amount to carry out activities to imple4 
ment a national action plan to prevent healthcare-associ5 
ated infections, as determined by the Secretary, of which 
6 
not less $50,000,000 shall be provided to States to imple7 
ment healthcare-associated infection reduction strategies: 
8 
Provided further, That of the amount appropriated under 
9 
this heading $500,000,000 shall be used to carry out evi10 
dence-based clinical and community-based prevention and 
11 
wellness strategies and public health workforce develop12 
ment activities authorized by the Public Health Service 
13 
Act, as determined by the Secretary, that deliver specific, 
14 
measurable health outcomes that address chronic and in15 
fectious disease rates and health disparities, which shall 
16 
include evidence-based interventions in obesity, diabetes, 
17 
heart disease, cancer, tobacco cessation and smoking pre18 
vention, and oral health, and which may be used for the 
19 
Healthy Communities program administered by the Cen20 
ters for Disease Control and Prevention and other existing 
21 
community-based programs administered by the Depart22 
ment of Health and Human Services: Provided further, 
23 
That funds appropriated in the preceding proviso may be 
24 
transferred to other appropriation accounts of the Depart25 
ment of Health and Human Services, as determined by 

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1 
the Secretary to be appropriate: Provided further, That the 
2 
Secretary shall, directly or through contracts with public 
3 
or private entities, provide for annual evaluations of pro4 
grams carried out with funds provided under this heading 
5 
in order to determine the quality and effectiveness of the 
6 
programs: Provided further, That the Secretary shall, not 
7 
later than 1 year after the date of enactment of this Act, 
8 
submit to the Committees on Appropriations of the House 
9 
of Representatives and the Senate, the Committee on En10 
ergy and Commerce of the House of Representatives, and 
11 
the Committee on Health, Education, Labor, and Pen12 
sions of the Senate, a report (1) summarizing the annual 
13 
evaluations of programs from the preceding proviso; and 
14 
(2) making recommendations concerning future spending 
15 
on prevention and wellness activities, including any rec16 
ommendations made by the United States Preventive 
17 
Services Task Force in the area of clinical preventive serv18 
ices and the Task Force on Community Preventive Serv19 
ices in the area of community preventive services: Provided 
20 
further, That the Secretary shall enter into a contract with 
21 
the Institute of Medicine, for which no more than 
22 
$1,500,000 shall be made available from funds provided 
23 
in this paragraph, to produce and submit a report to the 
24 
Congress and the Secretary by no later than 1 year after 
25 
the date of enactment of this Act that includes rec-

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1 
ommendations on the national priorities for clinical and 
2 
community-based prevention and wellness activities that 
3 
will have a positive impact in preventing illness or reduc4 
ing healthcare costs and that considers input from stake5 
holders: Provided further, That the Secretary shall provide 
6 
to the Committees on Appropriations of the House of Rep7 
resentatives and the Senate a fiscal year 2009 operating 
8 
plan for the Prevention and Wellness Fund prior to mak9 
ing any Federal obligations of funds provided under this 
10 
heading in fiscal year 2009 (excluding funds to carry out 
11 
the section 317 immunization program), but not later than 
12 
90 days after the date of enactment of this Act, and a 
13 
fiscal year 2010 operating plan for the Prevention and 
14 
Wellness Fund prior to making any Federal obligations 
15 
of funds provided under this heading in fiscal year 2010 
16 
(excluding funds to carry out the section 317 immuniza17 
tion program), but not later than November 1, 2009, that 
18 
indicate the prevention priorities to be addressed; provide 
19 
measurable goals for each prevention priority; detail the 
20 
allocation of resources within the Department of Health 
21 
and Human Services; and identify which programs or ac22 
tivities are supported, including descriptions of any new 
23 
programs or activities: Provided further, That the Sec24 
retary shall provide to the Committees on Appropriations 
25 
of the House of Representatives and the Senate a report 

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1 
on the actual obligations, expenditures, and unobligated 
2 
balances for each activity funded under this heading not 
3 
later than November 1, 2009 and every 6 months there4 
after as long as funding provided under this heading is 
5 
available for obligation or expenditure. 
6 
GENERAL PROVISIONS, THIS SUBTITLE 
7 
SEC. 9201. FEDERAL COORDINATING COUNCIL FOR COM8 
PARATIVE EFFECTIVENESS RESEARCH. 
9 
(a) ESTABLISHMENT.—There is hereby established a 
10 
Federal Coordinating Council for Comparative Effective11 
ness Research (in this section referred to as the ‘‘Coun12 
cil’’). 
13 
(b) PURPOSE; DUTIES.—The Council shall— 
14 
(1) assist the offices and agencies of the Fed15 
eral Government, including the Departments of 
16 
Health and Human Services, Veterans Affairs, and 
17 
Defense, and other Federal departments or agencies, 
18 
to coordinate the conduct or support of comparative 
19 
effectiveness and related health services research; 
20 
and 
21 


(2) advise the President and Congress on— 

22 


(A) strategies with respect to the infra


23 


structure needs of comparative effectiveness re


24 


search within the Federal Government; 

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1 


(B) appropriate organizational expendi


2 


tures for comparative effectiveness research by 

3 


relevant Federal departments and agencies; and 

4 


(C) opportunities to assure optimum co


5 


ordination of comparative effectiveness and re6 
lated health services research conducted or sup7 
ported by relevant Federal departments and 
8 
agencies, with the goal of reducing duplicative 
9 
efforts and encouraging coordinated and com10 
plementary use of resources. 
11 
(c) MEMBERSHIP.— 
12 
(1) NUMBER AND APPOINTMENT.—The Council 
13 
shall be composed of not more than 15 members, all 
14 
of whom are senior Federal officers or employees 
15 
with responsibility for health-related programs, ap16 
pointed by the President, acting through the Sec17 
retary of Health and Human Services (in this sec18 
tion referred to as the ‘‘Secretary’’). Members shall 
19 
first be appointed to the Council not later than 30 
20 
days after the date of the enactment of this Act. 
21 


(2) MEMBERS.— 

22 


(A) IN GENERAL.—The members of the 

23 


Council shall include one senior officer or em


24 


ployee from each of the following agencies: 

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1 


(i) The Agency for Healthcare Re


2 


search and Quality. 

3 


(ii) The Centers for Medicare and 

4 


Medicaid Services. 
5 
(iii) The National Institutes of 
6 
Health. 
7 
(iv) The Office of the National Coor8 
dinator for Health Information Tech9 
nology. 
10 
(v) The Food and Drug Administra11 
tion. 
12 
(vi) The Veterans Health Administra13 
tion within the Department of Veterans 
14 
Affairs. 
15 
(vii) The office within the Department 
16 
of Defense responsible for management of 
17 
the Department of Defense Military 
18 
Health Care System. 
19 
(B) QUALIFICATIONS.—At least half of the 
20 
members of the Council shall be physicians or 
21 


other experts with clinical expertise. 
22 
(3) CHAIRMAN; VICE CHAIRMAN.—The Sec23 


retary shall serve as Chairman of the Council and 

24 


shall designate a member to serve as Vice Chairman. 

25 


(d) REPORTS.— 

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1 


(1) INITIAL REPORT.—Not later than June 30, 

2 


2009, the Council shall submit to the President and 

3 


the Congress a report containing information de


4 


scribing Federal activities on comparative effective


5 


ness research and recommendations for additional 
6 
investments in such research conducted or supported 
7 
from funds made available for allotment by the Sec8 
retary for comparative effectiveness research in this 
9 
Act. 
10 
(2) ANNUAL REPORT.—The Council shall sub11 
mit to the President and Congress an annual report 
12 
regarding its activities and recommendations con13 
cerning the infrastructure needs, appropriate organi14 
zational expenditures and opportunities for better 
15 
coordination of comparative effectiveness research by 
16 
relevant Federal departments and agencies. 
17 
(e) STAFFING; SUPPORT.—From funds made avail18 
able for allotment by the Secretary for comparative effec19 
tiveness research in this Act, the Secretary shall make 
20 
available not more than 1 percent to the Council for staff 
21 
and administrative support. 
22 
SEC. 9202. INVESTMENT IN HEALTH INFORMATION TECH23 
NOLOGY. 
24 


(a) IN GENERAL.—The Secretary of Health and 
25 
Human Services shall invest in the infrastructure nec


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155 
1 
essary to allow for and promote the electronic exchange 
2 
and use of health information for each individual in the 
3 
United States consistent with the goals outlined in the 
4 
Strategic Plan developed by the Office of the National Co5 
ordinator for Health Information Technology. Such invest6 
ment shall include investment in at least the following: 
7 
(1) Health information technology architecture 
8 
that will support the nationwide electronic exchange 
9 
and use of health information in a secure, private, 
10 
and accurate manner, including connecting health 
11 
information exchanges, and which may include up12 
dating and implementing the infrastructure nec13 
essary within different agencies of the Department 
14 
of Health and Human Services to support the elec15 
tronic use and exchange of health information. 
16 
(2) Integration of health information tech17 
nology, including electronic medical records, into the 
18 
initial and ongoing training of health professionals 
19 
and others in the healthcare industry who would be 
20 
instrumental to improving the quality of healthcare 
21 


through the smooth and accurate electronic use and 

22 


exchange of health information as determined by the 

23 


Secretary. 

24 


(3) Training on and dissemination of informa


25 


tion on best practices to integrate health information 

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1 


technology, including electronic records, into a pro


2 


vider’s delivery of care, including community health 

3 


centers receiving assistance under section 330 of the 

4 


Public Health Service Act and providers partici


5 


pating in one or more of the programs under titles 
6 
XVIII, XIX, and XXI of the Social Security Act (re7 
lating to Medicare, Medicaid, and the State Chil8 
drens Health Insurance Program). 
9 
(4) Infrastructure and tools for the promotion 
10 
of telemedicine, including coordination among Fed11 
eral agencies in the promotion of telemedicine. 
12 
(5) Promotion of the interoperability of clinical 
13 
data repositories or registries. 
14 
The Secretary shall implement paragraph (3) in coordina15 
tion with State agencies administering the Medicaid pro16 
gram and the State Children’s Health Insurance Program. 
17 
(b) LIMITATION.—None of the funds appropriated to 
18 
carry out this section may be used to make significant in19 
vestments in, or provide significant funds for, the acquisi20 
tion of hardware or software or for the use of an electronic 
21 
health or medical record, or significant components there22 
of, unless such investments or funds are for certified prod23 
ucts that would permit the full and accurate electronic ex24 
change and use of health information in a medical record, 
25 
including standards for security, privacy, and quality im


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1 
provement functions adopted by the Office of the National 
2 
Coordinator for Health Information Technology. 
3 


(c) REPORT.—The Secretary shall annually report to 
4 
the Committees on Energy and Commerce, on Ways and 
5 
Means, on Science and Technology, and on Appropriations 
6 
of the House of Representatives and the Committees on 
7 
Finance, on Health, Education, Labor, and Pensions, and 
8 
on Appropriations of the Senate on the uses of these funds 
9 
and their impact on the infrastructure for the electronic 
10 
exchange and use of health information. 
11 
Subtitle C—Education 
12 
DEPARTMENT OF EDUCATION 
13 
EDUCATION FOR THE DISADVANTAGED 
14 
For an additional amount for ‘‘Education for the Dis15 
advantaged’’ to carry out title I of the Elementary and 
16 
Secondary Education Act of 1965 (‘‘ESEA’’), 
17 
$13,000,000,000: Provided, That $5,500,000,000 shall be 
18 
available for targeted grants under section 1125 of the 
19 
ESEA, of which $2,750,000,000 shall become available on 
20 
July 1, 2009, and shall remain available through Sep21 
tember 30, 2010, and $2,750,000,000 shall become avail22 
able on July 1, 2010, and shall remain available through 
23 
September 30, 2011: Provided further, That 
24 
$5,500,000,000 shall be available for education finance in25 
centive grants under section 1125A of the ESEA, of which 

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1 
$2,750,000,000 shall become available on July 1, 2009, 
2 
and shall remain available through September 30, 2010, 
3 
and $2,750,000,000 shall become available on July 1, 
4 
2010, and shall remain available through September 30, 
5 
2011: Provided further, That $2,000,000,000 shall be for 
6 
school improvement grants under section 1003(g) of the 
7 
ESEA, of which $1,000,000,000 shall become available on 
8 
July 1, 2009, and shall remain available through Sep9 
tember 30, 2010, and $1,000,000,000 shall become avail10 
able on July 1, 2010, and shall remain available through 
11 
September 30, 2011: Provided further, That the provisions 
12 
of section 1106 of this Act shall not apply to this appro13 
priation. 
14 
IMPACT AID 
15 
For an additional amount for ‘‘Impact Aid’’ to carry 
16 
out section 8007 of title VIII of the Elementary and Sec17 
ondary Education Act of 1965, $100,000,000, which shall 
18 
remain available through September 30, 2010: Provided, 
19 
That the amount set aside from this appropriation pursu20 
ant to section 1106 of this Act shall be 1 percent instead 
21 
of the percentage specified in such section. 
22 


SCHOOL IMPROVEMENT PROGRAMS 

23 


For an additional amount for ‘‘School Improvement 
24 
Programs’’ to carry out subpart 1, part D of title II of 
25 
the Elementary and Secondary Education Act of 1965 

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159 
1 
(‘‘ESEA’’), and subtitle B of title VII of the McKinney2 
Vento Homeless Assistance Act, $1,066,000,000: Pro3 
vided, That $1,000,000,000 shall be available for subpart 
4 
1, part D of title II of the ESEA, of which $500,000,000 
5 
shall become available on July 1, 2009, and shall remain 
6 
available through September 30, 2010, and $500,000,000 
7 
shall become available on July 1, 2010, and remain avail8 
able through September 30, 2011: Provided further, That 
9 
the provisions of section 1106 of this Act shall not apply 
10 
to these funds: Provided further, That $66,000,000 shall 
11 
be available for subtitle B of title VII of the McKinney12 
Vento Homeless Assistance Act, of which $33,000,000 
13 
shall become available on July 1, 2009, and shall remain 
14 
available through September 30, 2010, and $33,000,000 
15 
shall become available on July 1, 2010, and remain avail16 
able through September 30, 2011. 
17 
INNOVATION AND IMPROVEMENT 
18 
For an additional amount for ‘‘Innovation and Im19 
provement’’ to carry out subpart 1, part D and subpart 
20 
2, part B of title V of the Elementary and Secondary Edu21 
cation Act of 1965 (‘‘ESEA’’), $225,000,000: Provided, 
22 
That $200,000,000 shall be available for subpart 1, part 
23 
D of title V of the ESEA: Provided further, That these 
24 
funds shall be expended as directed in the fifth, sixth, and 
25 
seventh provisos under the heading ‘‘Innovation and Im


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1 
provement’’ in the Department of Education Appropria2 
tions Act, 2008: Provided further, That a portion of these 
3 
funds shall also be used for a rigorous national evaluation 
4 
by the Institute of Education Sciences, utilizing random5 
ized controlled methodology to the extent feasible, that as6 
sesses the impact of performance-based teacher and prin7 
cipal compensation systems supported by the funds pro8 
vided in this Act on teacher and principal recruitment and 
9 
retention in high-need schools and subjects: Provided fur10 
ther, That $25,000,000 shall be available for subpart 2, 
11 
part B of title V of the ESEA: Provided further, That the 
12 
amount set aside from this appropriation pursuant to sec13 
tion 1106 of this Act shall be 1 percent instead of the 
14 
percentage specified in such section. 
15 
SPECIAL EDUCATION 
16 
For an additional amount for ‘‘Special Education’’ 
17 
for carrying out section 611 and part C of the Individuals 
18 
with Disabilities Education Act (‘‘IDEA’’), 
19 
$13,600,000,000: Provided, That $13,000,000,000 shall 
20 
be available for section 611 of the IDEA, of which 
21 
$6,000,000,000 shall become available on July 1, 2009, 
22 
and remain available through September 30, 2010, and 
23 
$7,000,000,000 shall become available on July 1, 2010, 
24 
and remain available through September 30, 2011: Pro25 
vided further, That $600,000,000 shall be available for 

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1 
part C of the IDEA, of which $300,000,000 shall become 
2 
available on July 1, 2009, and remain available through 
3 
September 30, 2010, and $300,000,000 shall become 
4 
available on July 1, 2010, and remain available through 
5 
September 30, 2011: Provided further, That by July 1, 
6 
2009, the Secretary of Education shall reserve the amount 
7 
needed for grants under section 643(e) of the IDEA from 
8 
funds available for obligation on July 1, 2009, with any 
9 
remaining funds to be allocated in accordance with section 
10 
643(c) of the IDEA: Provided further, That by July 1, 
11 
2010, the Secretary shall reserve the amount needed for 
12 
grants under section 643(e) of the IDEA from funds avail13 
able for obligation on July 1, 2010, with any remaining 
14 
funds to be allocated in accordance with section 643(c) 
15 
of the IDEA: Provided further, That if every State, as de16 
fined by section 602(31) of the IDEA, reaches its max17 
imum allocation under section 611(d)(3)(B)(iii) of the 
18 
IDEA, and there are remaining funds, such funds shall 
19 
be proportionally allocated to each State subject to the 
20 
maximum amounts contained in section 611(a)(2) of the 
21 
IDEA: Provided further, That the provisions of section 
22 
1106 of this Act shall not apply to this appropriation. 
23 
REHABILITATION SERVICES AND DISABILITY RESEARCH 
24 


For an additional amount for ‘‘Rehabilitation Serv25 
ices and Disability Research’’ for providing grants to 

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1 
States to carry out the Vocational Rehabilitation Services 
2 
program under part B of title I and parts B and C of 
3 
chapter 1 and chapter 2 of title VII of the Rehabilitation 
4 
Act of 1973, $700,000,000: Provided, That $500,000,000 
5 
shall be available for part B of title I of the Rehabilitation 
6 
Act, of which $250,000,000 shall become available on Oc7 
tober 1, 2009: Provided further, That funds provided here8 
in shall not be considered in determining the amount re9 
quired to be appropriated under section 100(b)(1) of the 
10 
Rehabilitation Act of 1973 in any fiscal year: Provided fur11 
ther, That, notwithstanding section 7(14)(A), the Federal 
12 
share of the costs of vocational rehabilitation services pro13 
vided with the funds provided herein shall be 100 percent: 
14 
Provided further, That the provisions of section 1106 of 
15 
this Act shall not apply to these funds: Provided further, 
16 
That $200,000,000 shall be available for parts B and C 
17 
of chapter 1 and chapter 2 of title VII of the Rehabilita18 
tion Act, of which $100,000,000 shall become available on 
19 
October 1, 2009: Provided further, That $34,775,000 shall 
20 
be for State Grants, $114,581,000 shall be for inde21 
pendent living centers, and $50,644,000 shall be for serv22 
ices for older blind individuals. 
23 


STUDENT FINANCIAL ASSISTANCE 

24 


For an additional amount for ‘‘Student Financial As25 
sistance’’ to carry out subpart 1 of part A and part C 

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1 
of title IV of the Higher Education Act of 1965 (‘‘HEA’’), 
2 
$16,126,000,000, which shall remain available through 
3 
September 30, 2011: Provided, That $15,636,000,000 
4 
shall be available for subpart 1of part A of title IV of the 
5 
HEA: Provided further, That $490,000,000 shall be avail6 
able for part C of title IV of the HEA, of which 
7 
$245,000,000 shall become available on October 1, 2009: 
8 
Provided further, That the provisions of section 1106 of 
9 
this Act shall not apply to this appropriation. 
10 
The maximum Pell Grant for which a student shall 
11 
be eligible during award year 2009-2010 shall be $4,860. 
12 
STUDENT AID ADMINISTRATION 
13 
For an additional amount for ‘‘Student Aid Adminis14 
tration’’ to carry out part D of title I, and subparts 1, 
15 
3, and 4 of part A, and parts B, C, D, and E of title 
16 
IV of the Higher Education Act of 1965, $50,000,000, 
17 
which shall remain available through September 30, 2011: 
18 
Provided, That such amount shall also be available for an 
19 
independent audit of programs and activities authorized 
20 
under section 459A of such Act: Provided further, That 
21 
the provisions of section 1106 of this Act shall not apply 
22 
to this appropriation. 
23 


HIGHER EDUCATION 

24 


For an additional amount for ‘‘Higher Education’’ to 
25 
carry out part A of title II of the Higher Education Act 

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1 
of 1965, $100,000,000: Provided, That section 203(c)(1) 
2 
of such Act shall not apply to awards made with these 
3 
funds. 
4 


INSTITUTE OF EDUCATION SCIENCES 

5 


For an additional amount for Institute of Education 
6 
Sciences to carry out section 208 of the Educational Tech7 
nical Assistance Act, $250,000,000, which may be used 
8 
for Statewide data systems that include postsecondary and 
9 
workforce information, of which up to $5,000,000 may be 
10 
used for State data coordinators and for awards to public 
11 
or private organizations or agencies to improve data co12 
ordination: Provided, That the amount set aside from this 
13 
appropriation pursuant to section 1106 of this Act shall 
14 
be 1 percent instead of the percentage specified in such 
15 
section. 
16 
SCHOOL MODERNIZATION, RENOVATION, AND REPAIR 
17 
For carrying out section 9301 of this Act, 
18 
$14,000,000,000: Provided, That amount available under 
19 
section 9301 of this Act for administration and oversight 
20 
shall take the place of the set-aside under section 1106 
21 
of this Act. 
22 
HIGHER EDUCATION MODERNIZATION, RENOVATION, 
23 


AND REPAIR 

24 


For carrying out section 9302 of this Act, 
25 
$6,000,000,000: Provided, That amount available under 

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165 
1 
section 9302 of this Act for administration and oversight 
2 
shall take the place of the set-aside under section 1106 
3 
of this Act. 
4 


GENERAL PROVISIONS, THIS SUBTITLE 

5 
SEC. 9301. 21ST CENTURY GREEN HIGH-PERFORMING PUB6 
LIC SCHOOL FACILITIES. 
7 
(a) DEFINITIONS.—In this section: 
8 
(1) The term ‘‘Bureau-funded school’’ has the 
9 
meaning given to such term in section 1141 of the 
10 
Education Amendments of 1978 (25 U.S.C. 2021). 
11 
(2) The term ‘‘charter school’’ has the meaning 
12 
given such term in section 5210 of the Elementary 
13 
and Secondary Education Act of 1965. 
14 
(3) The term ‘‘local educational agency’’— 
15 
(A) has the meaning given to that term in 
16 
section 9101 of the Elementary and Secondary 
17 
Education Act of 1965, and shall also include 
18 
the Recovery School District of Louisiana and 
19 
the New Orleans Public Schools; and 
20 
(B) includes any public charter school that 
21 


constitutes a local educational agency under 

22 


State law. 

23 


(4) The term ‘‘outlying area’’— 

24 


(A) means the United States Virgin Is


25 


lands, Guam, American Samoa, and the Com


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166 

1 


monwealth of the Northern Mariana Islands; 
2 
and 
3 


(B) includes the freely associated states of 

4 


the Republic of the Marshall Islands, the Fed


5 


erated States of Micronesia, and the Republic 
6 
of Palau. 
7 
(5) The term ‘‘public school facilities’’ includes 
8 
charter schools. 
9 
(6) The term ‘‘State’’ means each of the 50 
10 
States, the District of Columbia, and the Common11 
wealth of Puerto Rico. 
12 
(7) The term ‘‘LEED Green Building Rating 
13 
System’’ means the United States Green Building 
14 
Council Leadership in Energy and Environmental 
15 
Design green building rating standard referred to as 
16 
the LEED Green Building Rating System. 
17 
(8) The term ‘‘Energy Star’’ means the Energy 
18 
Star program of the United States Department of 
19 
Energy and the United States Environmental Pro20 
tection Agency. 
21 


(9) The term ‘‘CHPS Criteria’’ means the 

22 


green building rating program developed by the Col


23 


laborative for High Performance Schools. 

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167 

1 


(10) The term ‘‘Green Globes’’ means the 

2 


Green Building Initiative environmental design and 

3 


rating system referred to as Green Globes. 

4 


(b) PURPOSE.—Grants under this section shall be for 
5 
the purpose of modernizing, renovating, or repairing pub6 
lic school facilities, based on their need for such improve7 
ments, to be safe, healthy, high-performing, and up-to8 
date technologically. 
9 
(c) ALLOCATION OF FUNDS.— 
10 
(1) RESERVATIONS.— 
11 
(A) IN GENERAL.—From the amount ap12 
propriated to carry out this section, the Sec13 
retary of Education shall reserve 1 percent of 
14 
such amount, consistent with the purpose de15 
scribed in subsection (b)— 
16 
(i) to provide assistance to the out17 
lying areas; and 
18 
(ii) for payments to the Secretary of 
19 
the Interior to provide assistance to Bu20 
reau-funded schools. 
21 
(B) ADMINISTRATION AND OVERSIGHT.— 
22 


The Secretary may, in addition, reserve up to 

23 


$6,000,000 of such amount for administration 

24 


and oversight of this section. 

25 


(2) ALLOCATION TO STATES.— 

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1 
(A) STATE-BY-STATE ALLOCATION.—Of 
2 


the amount appropriated to carry out this sec


3 


tion, and not reserved under paragraph (1), 

4 


each State shall be allocated an amount in pro


5 


portion to the amount received by all local edu6 
cational agencies in the State under part A of 
7 
title I of the Elementary and Secondary Edu8 
cation Act of 1965 for fiscal year 2008 relative 
9 
to the total amount received by all local edu10 
cational agencies in every State under such part 
11 
for such fiscal year. 
12 
(B) STATE ADMINISTRATION.—A State 
13 
may reserve up to 1 percent of its allocation 
14 
under subparagraph (A) to carry out its respon15 
sibilities under this section, including— 
16 
(i) providing technical assistance to 
17 
local educational agencies; 
18 
(ii) developing, within 6 months of re19 
ceiving its allocation under subparagraph 
20 
(A), a plan to develop a database that in21 


cludes an inventory of public school facili


22 


ties in the State and the modernization, 

23 


renovation, and repair needs of, energy use 

24 


by, and the carbon footprint of such 

25 


schools; and 

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169 

1 


(iii) developing a school energy effi


2 


ciency quality plan. 
3 
(C) GRANTS TO LOCAL EDUCATIONAL 
4 


AGENCIES.—From the amount allocated to a 

5 


State under subparagraph (A), each local edu6 
cational agency in the State that meets the re7 
quirements of section 1112(a) of the Elemen8 
tary and Secondary Education Act of 1965 
9 
shall receive an amount in proportion to the 
10 
amount received by such local educational agen11 
cy under part A of title I of that Act for fiscal 
12 
year 2008 relative to the total amount received 
13 
by all local educational agencies in the State 
14 
under such part for such fiscal year, except that 
15 
no local educational agency that received funds 
16 
under part A of title I of that Act for such fis17 
cal year shall receive a grant of less than 
18 
$5,000. 
19 
(D) SPECIAL RULE.—Section 1122(c)(3) 
20 
of the Elementary and Secondary Education 
21 


Act of 1965 shall not apply to subparagraph 

22 


(A) or (C). 

23 


(3) SPECIAL RULES.— 

24 


(A) DISTRIBUTIONS BY SECRETARY.—The 

25 


Secretary of Education shall make and dis-

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1 


tribute the reservations and allocations de


2 


scribed in paragraphs (1) and (2) not later than 

3 


30 days after the date of the enactment of this 
4 
Act. 
5 


(B) DISTRIBUTIONS BY STATES.—A State 
6 
shall make and distribute the allocations de7 
scribed in paragraph (2)(C) within 30 days of 
8 
receiving such funds from the Secretary. 
9 
(d) USE ITOR LOSE IT REQUIREMENTS.— 
10 
(1) DEADLINE FOR BINDING COMMITMENTS.— 
11 
Each local educational agency receiving funds under 
12 
this section shall enter into contracts or other bind13 
ing commitments not later than 1 year after the 
14 
date of the enactment of this Act (or not later than 
15 
9 months after such funds are awarded, if later) to 
16 
make use of 50 percent of such funds, and shall 
17 
enter into contracts or other binding commitments 
18 
not later than 2 years after the date of the enact19 
ment of this Act (or not later than 21 months after 
20 
such funds are awarded, if later) to make use of the 
21 


remaining funds. In the case of activities to be car


22 


ried out directly by a local educational agency (rath


23 


er than by contracts, subgrants, or other arrange


24 


ments with third parties), a certification by the 

25 


agency specifying the amounts, planned timing, and 

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171 

1 


purpose of such expenditures shall be deemed a 

2 


binding commitment for purposes of this subsection. 
3 
(2) REDISTRIBUTION OF UNCOMMITTED 
4 


FUNDS.—A State shall recover or deobligate any 

5 


funds not committed in accordance with paragraph 
6 
(1), and redistribute such funds to other local edu7 
cational agencies eligible under this section and able 
8 
to make use of such funds in a timely manner (in9 
cluding binding commitments within 120 days after 
10 
the reallocation). 
11 
(e) ALLOWABLE USES OF FUNDS.—A local edu12 
cational agency receiving a grant under this section shall 
13 
use the grant for modernization, renovation, or repair of 
14 
public school facilities, including— 
15 
(1) repairing, replacing, or installing roofs, in16 
cluding extensive, intensive or semi-intensive green 
17 
roofs, electrical wiring, plumbing systems, sewage 
18 
systems, lighting systems, or components of such 
19 
systems, windows, or doors, including security doors; 
20 
(2) repairing, replacing, or installing heating, 
21 


ventilation, air conditioning systems, or components 

22 


of such systems (including insulation), including in


23 


door air quality assessments; 

24 


(3) bringing public schools into compliance with 

25 


fire, health, and safety codes, including professional 

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172 

1 


installation of fire/life safety alarms, including mod


2 


ernizations, renovations, and repairs that ensure 

3 


that schools are prepared for emergencies, such as 

4 


improving building infrastructure to accommodate 

5 


security measures; 
6 
(4) modifications necessary to make public 
7 
school facilities accessible to comply with the Ameri8 
cans with Disabilities Act of 1990 (42 U.S.C. 12101 
9 
et seq.) and section 504 of the Rehabilitation Act of 
10 
1973 (29 U.S.C. 794), except that such modifica11 
tions shall not be the primary use of the grant; 
12 
(5) asbestos or polychlorinated biphenyls abate13 
ment or removal from public school facilities; 
14 
(6) implementation of measures designed to re15 
duce or eliminate human exposure to lead-based 
16 
paint hazards through methods including interim 
17 
controls, abatement, or a combination of each; 
18 
(7) implementation of measures designed to re19 
duce or eliminate human exposure to mold or mil20 
dew; 
21 


(8) upgrading or installing educational tech


22 


nology infrastructure to ensure that students have 

23 


access to up-to-date educational technology; 

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173 

1 


(9) technology activities that are carried out in 

2 


connection with school repair and renovation, includ


3 


ing— 

4 


(A) wiring; 

5 


(B) acquiring hardware and software; 
6 
(C) acquiring connectivity linkages and re7 
sources; and 
8 
(D) acquiring microwave, fiber optics, 
9 
cable, and satellite transmission equipment; 
10 
(10) modernization, renovation, or repair of 
11 
science and engineering laboratory facilities, librar12 
ies, and career and technical education facilities, in13 
cluding those related to energy efficiency and renew14 
able energy, and improvements to building infra15 
structure to accommodate bicycle and pedestrian ac16 
cess; 
17 
(11) renewable energy generation and heating 
18 
systems, including solar, photovoltaic, wind, geo19 
thermal, or biomass, including wood pellet, systems 
20 
or components of such systems; 
21 


(12) other modernization, renovation, or repair 

22 


of public school facilities to— 

23 


(A) improve teachers’ ability to teach and 

24 


students’ ability to learn; 

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174 

1 


(B) ensure the health and safety of stu


2 


dents and staff; 

3 


(C) make them more energy efficient; or 

4 


(D) reduce class size; and 

5 


(13) required environmental remediation related 
6 
to public school modernization, renovation, or repair 
7 
described in paragraphs (1) through (12). 
8 
(f) IMPERMISSIBLE USES OF FUNDS.—No funds re9 
ceived under this section may be used for— 
10 
(1) payment of maintenance costs; or 
11 
(2) stadiums or other facilities primarily used 
12 
for athletic contests or exhibitions or other events 
13 
for which admission is charged to the general public. 
14 
(g) SUPPLEMENT, NOT SUPPLANT.—A local edu15 
cational agency receiving a grant under this section shall 
16 
use such Federal funds only to supplement and not sup17 
plant the amount of funds that would, in the absence of 
18 
such Federal funds, be available for modernization, ren19 
ovation, or repair of public school facilities. 
20 
(h) PROHIBITION REGARDING STATE AID.—A State 
21 
shall not take into consideration payments under this sec22 
tion in determining the eligibility of any local educational 
23 
agency in that State for State aid, or the amount of State 
24 
aid, with respect to free public education of children. 

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175 

1 


(i) SPECIAL RULE ON CONTRACTING.—Each local 
2 
educational agency receiving a grant under this section 
3 
shall ensure that, if the agency carries out modernization, 
4 
renovation, or repair through a contract, the process for 
5 
any such contract ensures the maximum number of quali6 
fied bidders, including local, small, minority, and women-
7 
and veteran-owned businesses, through full and open com8 
petition. 
9 
(j) SPECIAL RULE ON USE OF IRON AND STEEL 
10 
PRODUCED IN THE UNITED STATES.— 
11 
(1) IN GENERAL.—A local educational agency 
12 
shall not obligate or expend funds received under 
13 
this section for a project for the modernization, ren14 
ovation, or repair of a public school facility unless all 
15 
of the iron and steel used in such project is pro16 
duced in the United States. 
17 
(2) EXCEPTIONS.—The provisions of paragraph 
18 
(1) shall not apply in any case in which the local 
19 
educational agency finds that— 
20 
(A) their application would be inconsistent 
21 


with the public interest; 

22 


(B) iron and steel are not produced in the 

23 


United States in sufficient and reasonably 

24 


available quantities and of a satisfactory qual25 
ity; or 

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176 

1 


(C) inclusion of iron and steel produced in 

2 


the United States will increase the cost of the 

3 


overall project contract by more than 25 per4 
cent. 
5 
(k) APPLICATION OF GEPA.—The grant program 
6 
under this section is an applicable program (as that term 
7 
is defined in section 400 of the General Education Provi8 
sions Act (20 U.S.C. 1221)) subject to section 439 of such 
9 
Act (20 U.S.C. 1232b). 
10 
(l) CHARTER SCHOOLS.—A local educational agency 
11 
receiving an allocation under this section shall use an equi12 
table portion of that allocation for allowable activities ben13 
efitting charter schools within its jurisdiction, as deter14 
mined based on the percentage of students from low-in15 
come families in the schools of the agency who are enrolled 
16 
in charter schools and on the needs of those schools as 
17 
determined by the agency. 
18 
(m) GREEN SCHOOLS.— 
19 
(1) IN GENERAL.—A local educational agency 
20 
shall use not less than 25 percent of the funds re21 


ceived under this section for public school mod


22 


ernization, renovation, or repairs that are certified, 

23 


verified, or consistent with any applicable provisions 
24 
of— 

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1 
2 
tem; 
3 
4 
5 
6 


177 

(A) the LEED Green Building Rating Sys


(B) Energy Star; 

(C) the CHPS Criteria; 

(D) Green Globes; or 

(E) an equivalent program adopted by the 

7 
State or another jurisdiction with authority over 

8 
the local educational agency. 

9 
(2) TECHNICAL ASSISTANCE.—The Secretary, 
10 
in consultation with the Secretary of Energy and the 
11 
Administrator of the Environmental Protection 
12 
Agency, shall provide outreach and technical assist13 
ance to States and school districts concerning the 
14 
best practices in school modernization, renovation, 
15 
and repair, including those related to student aca16 
demic achievement and student and staff health, en17 
ergy efficiency, and environmental protection. 
18 
(n) YOUTHBUILD PROGRAMS.—The Secretary of 
19 
Education, in consultation with the Secretary of Labor, 
20 
shall work with recipients of funds under this section to 
21 
promote appropriate opportunities for participants in a 
22 
YouthBuild program (as defined in section 173A of the 
23 
Workforce Investment Act of 1998 (29 U.S.C. 2918a)) to 
24 
gain employment experience on modernization, renovation, 
25 
and repair projects funded under this section. 

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178 

1 


(o) REPORTING.— 
2 
(1) REPORTS BY LOCAL EDUCATIONAL AGEN3 


CIES.—Local educational agencies receiving a grant 

4 


under this section shall compile, and submit to the 

5 


State educational agency (which shall compile and 
6 
submit such reports to the Secretary), a report de7 
scribing the projects for which such funds were used, 
8 
including— 
9 
(A) the number of public schools in the 
10 
agency, including the number of charter 
11 
schools; 
12 
(B) the total amount of funds received by 
13 
the local educational agency under this section 
14 
and the amount of such funds expended, includ15 
ing the amount expended for modernization, 
16 
renovation, and repair of charter schools; 
17 
(C) the number of public schools in the 
18 
agency with a metro-centric locale code of 41, 
19 
42, or 43 as determined by the National Center 
20 
for Education Statistics and the percentage of 
21 


funds received by the agency under this section 

22 


that were used for projects at such schools; 

23 


(D) the number of public schools in the 

24 


agency that are eligible for schoolwide programs 

25 


under section 1114 of the Elementary and Sec


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179 

1 


ondary Education Act of 1965 and the percent


2 


age of funds received by the agency under this 

3 


section that were used for projects at such 

4 


schools; 

5 


(E) the cost of each project, which, if any, 
6 
of the standards described in subsection (k)(1) 
7 
the project met, and any demonstrable or ex8 
pected academic, energy, or environmental ben9 
efits as a result of the project; 
10 
(F) if flooring was installed, whether— 
11 
(i) it was low- or no-VOC (Volatile 
12 
Organic Compounds) flooring; 
13 
(ii) it was made from sustainable ma14 
terials; and 
15 
(iii) use of flooring described in clause 
16 
(i) or (ii) was cost effective; and 
17 
(G) the total number and amount of con18 
tracts awarded, and the number and amount of 
19 
contracts awarded to local, small, minority20 
owned, women-owned, and veteran-owned busi21 
nesses. 
22 
(2) REPORTS BY SECRETARY.—Not later than 
23 


December 31, 2011, the Secretary of Education 

24 


shall submit to the Committees on Education and 

25 


Labor and Appropriations of the House of Rep-

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180 

1 


resentatives and the Committees on Health, Edu


2 


cation, Labor, and Pensions and Appropriations of 

3 


the Senate a report on grants made under this sec


4 


tion, including the information described in para


5 


graph (1), the types of modernization, renovation, 
6 
and repair funded, and the number of students im7 
pacted, including the number of students counted 
8 
under section 1113(a)(5) of the Elementary and 
9 
Secondary Education Act of 1965. 
10 
SEC. 9302. HIGHER EDUCATION MODERNIZATION, RENOVA11 
TION, AND REPAIR. 
12 
(a) PURPOSE.—Grants awarded under this section 
13 
shall be for the purpose of modernizing, renovating, and 
14 
repairing institution of higher education facilities that are 
15 
primarily used for instruction, research, or student hous16 
ing. 
17 
(b) GRANTS TO STATE HIGHER EDUCATION AGEN18 
CIES.— 
19 
(1) FORMULA.—From the amounts appro20 
priated to carry out this section, the Secretary of 
21 


Education shall allocate funds to State higher edu


22 


cation agencies based on the number of students at


23 


tending institutions of higher education, with the 

24 


State higher education agency in each State receiv


25 


ing an amount that is in proportion to the number 

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181 

1 


of full-time equivalent undergraduate students at


2 


tending institutions of higher education in such 

3 


State for the most recent fiscal year for which there 

4 


are data available, relative to the total number of 

5 


full-time equivalent undergraduate students attend6 
ing institutions of higher education in all States for 
7 
such fiscal year. 
8 
(2) APPLICATION.—To be eligible to receive an 
9 
allocation from the Secretary under paragraph (1), 
10 
a State higher education agency shall submit an ap11 
plication to the Secretary at such time and in such 
12 
manner as the Secretary may reasonably require. 
13 
(3) REALLOCATION.—Amounts allocated to a 
14 
State higher education agency under this section 
15 
that are not obligated by such agency within 6 
16 
months of the date the agency receives such 
17 
amounts shall be returned to the Secretary, and the 
18 
Secretary shall reallocate such amounts to State 
19 
higher education agencies in other States on the 
20 
same basis as the original allocations under para21 


graph (1)(B). 
22 
(4) ADMINISTRATION AND OVERSIGHT EX23 


PENSES.—From the amounts appropriated to carry 

24 


out this section, not more than $6,000,000 shall be 

25 


available to the Secretary for administrative and 

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182 

1 


oversight expenses related to carrying out this sec2 
tion. 
3 


(c) USE OF GRANTS BY STATE HIGHER EDUCATION 
4 
AGENCIES.— 
5 
(1) SUBGRANTS TO INSTITUTIONS OF HIGHER 
6 
EDUCATION.— 
7 
(A) IN GENERAL.—Except as provided in 
8 
paragraph (2), each State higher education 
9 
agency receiving an allocation under subsection 
10 
(b)(1) shall use the amount allocated to award 
11 
subgrants to institutions of higher education 
12 
within the State to carry out projects in accord13 
ance with subsection (d)(1). 
14 
(B) SUBGRANT AWARD ALLOCATION.—A 
15 
State higher education agency shall award sub16 
grants to institutions of higher education under 
17 
this section based on the demonstrated need of 
18 
each institution for facility modernization, ren19 
ovation, and repair. 
20 
(C) PRIORITY CONSIDERATIONS.—In 
21 


awarding subgrants under this section, each 

22 


State higher education agency shall give pri


23 


ority consideration to institutions of higher edu


24 


cation with any of the following characteristics: 

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183 

1 


(i) The institution is eligible for Fed


2 


eral assistance under title III or title V of 

3 


the Higher Education Act of 1965. 

4 


(ii) The institution was impacted by a 

5 


major disaster or emergency declared by 
6 
the President (as defined in section 102(2) 
7 
of the Robert T. Stafford Disaster Relief 
8 
and Emergency Assistance Act (42 U.S.C. 
9 
5122(2))), including an institution affected 
10 
by a Gulf hurricane disaster, as such term 
11 
is defined in section 824(g)(1) of the High12 
er Education Act of 1965 (20 U.S.C. 
13 
11611–3(g)(1)). 
14 
(iii) The institution demonstrates that 
15 
the proposed project or projects to be car16 
ried out with a subgrant under this section 
17 
will increase the energy efficiency of the in18 
stitution’s facilities and comply with the 
19 
LEED Green Building Rating System. 
20 
(2) ADMINISTRATIVE AND OVERSIGHT EX21 


PENSES.—Of the allocation amount received under 

22 


subsection (b)(1), a State higher education agency 

23 


may reserve not more than 5 percent of such 

24 


amount, or $500,000, whichever is less, for adminis


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184 

1 


trative and oversight expenses related to carrying 

2 


out this section. 

3 


(d) USE OF SUBGRANTS BY INSTITUTIONS OF HIGH4 
ER EDUCATION.— 
5 


(1) PERMISSIBLE USES OF FUNDS.—An institu6 
tion of higher education receiving a subgrant under 
7 
this section shall use such subgrant to modernize, 
8 
renovate, or repair facilities of the institution that 
9 
are primarily used for instruction, research, or stu10 
dent housing, which may include any of the fol11 
lowing: 
12 
(A) Repair, replacement, or installation of 
13 
roofs, electrical wiring, plumbing systems, sew14 
age systems, or lighting systems. 
15 
(B) Repair, replacement, or installation of 
16 
heating, ventilation, or air conditioning systems 
17 
(including insulation). 
18 
(C) Compliance with fire and safety codes, 
19 
including— 
20 
(i) professional installation of fire or 
21 


life safety alarms; and 

22 


(ii) modernizations, renovations, and 

23 


repairs that ensure that the institution’s 

24 


facilities are prepared for emergencies, 

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185 

1 


such as improving building infrastructure 

2 


to accommodate security measures. 

3 


(D) Retrofitting necessary to increase the 

4 


energy efficiency of the institution’s facilities. 

5 


(E) Renovations to the institution’s facili6 
ties necessary to comply with accessibility re7 
quirements in the Americans with Disabilities 
8 
Act of 1990 (42 U.S.C. 12101 et seq.) and sec9 
tion 504 of the Rehabilitation Act of 1973 (29 
10 
U.S.C. 794). 
11 
(F) Abatement or removal of asbestos from 
12 
the institution’s facilities. 
13 
(G) Modernization, renovation, and repair 
14 
relating to improving science and engineering 
15 
laboratories, libraries, and instructional facili16 
ties. 
17 
(H) Upgrading or installation of edu18 
cational technology infrastructure. 
19 
(I) Installation or upgrading of renewable 
20 
energy generation and heating systems, includ21 


ing solar, photovoltaic, wind, biomass (including 

22 


wood pellet), or geothermal systems, or compo


23 


nents of such systems. 

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186 

1 


(J) Other modernization, renovation, or re


2 


pair projects that are primarily for instruction, 

3 


research, or student housing. 

4 


(2) GREEN SCHOOL REQUIREMENT.—An insti


5 


tution of higher education receiving a subgrant 
6 
under this section shall use not less than 25 percent 
7 
of such subgrant to carry out projects for mod8 
ernization, renovation, or repair that are certified, 
9 
verified, or consistent with the applicable provisions 
10 
of— 
11 
(A) the LEED Green Building Rating Sys12 
tem; 
13 
(B) Energy Star; 
14 
(C) the CHPS Criteria; 
15 
(D) Green Globes; or 
16 
(E) an equivalent program adopted by the 
17 
State or the State higher education agency. 
18 
(3) PROHIBITED USES OF FUNDS.—No funds 
19 
awarded under this section may be used for— 
20 
(A) the maintenance of systems, equip21 


ment, or facilities, including maintenance asso


22 


ciated with any permissible uses of funds de


23 


scribed in paragraph (1); 

24 


(B) modernization, renovation, or repair of 

25 


stadiums or other facilities primarily used for 

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187 

1 


athletic contests or exhibitions or other events 

2 


for which admission is charged to the general 

3 


public; 

4 


(C) modernization, renovation, or repair of 

5 


facilities— 
6 
(i) used for sectarian instruction, reli7 
gious worship, or a school or department 
8 
of divinity; or 
9 
(ii) in which a substantial portion of 
10 
the functions of the facilities are subsumed 
11 
in a religious mission; or 
12 
(D) construction of new facilities. 
13 
(4) USE IT OR LOSE IT REQUIREMENTS.— 
14 
(A) DEADLINE FOR BINDING COMMIT15 
MENTS.—Each institution of higher education 
16 
receiving a subgrant under this section shall 
17 
enter into contracts or other binding commit18 
ments not later than 1 year after the date of 
19 
the enactment of this Act (or not later than 9 
20 
months after the subgrant is awarded, if later) 
21 


to make use of 50 percent of the funds award


22 


ed, and shall enter into contracts or other bind


23 


ing commitments not later than 2 years after 

24 


the date of the enactment of this Act (or not 

25 


later than 21 months after the subgrant is 

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188 

1 


awarded, if later) to make use of the remaining 

2 


funds. In the case of activities to be carried out 

3 


directly by an institution of higher education re


4 


ceiving such a subgrant (rather than by con


5 


tracts, subgrants, or other arrangements with 
6 
third parties), a certification by the institution 
7 
specifying the amounts, planned timing, and 
8 
purpose of such expenditures shall be deemed a 
9 
binding commitment for purposes of this sec10 
tion. 
11 
(B) REDISTRIBUTION OF UNCOMMITTED 
12 
FUNDS.—A State higher education agency shall 
13 
recover or deobligate any subgrant funds not 
14 
committed in accordance with subparagraph 
15 
(A), and redistribute such funds to other insti16 
tutions of higher education that are— 
17 
(i) eligible for subgrants under this 
18 
section; and 
19 
(ii) able to make use of such funds in 
20 
a timely manner (including binding com21 


mitments within 120 days after the re


22 


allocation). 

23 


(e) APPLICATION OF GEPA.—The grant program au24 
thorized in this section is an applicable program (as that 
25 
term is defined in section 400 of the General Education 

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189 
1 
Provisions Act (20 U.S.C. 1221)) subject to section 439 
2 
of such Act (20 U.S.C. 1232b). The Secretary shall, not3 
withstanding section 437 of such Act (20 U.S.C. 1232) 
4 
and section 553 of title 5, United States Code, establish 
5 
such program rules as may be necessary to implement 
6 
such grant program by notice in the Federal Register. 
7 
(f) REPORTING.— 
8 
(1) REPORTS BY INSTITUTIONS.—Not later 
9 
than September 30, 2011, each institution of higher 
10 
education receiving a subgrant under this section 
11 
shall submit to the State higher education agency 
12 
awarding such subgrant a report describing the 
13 
projects for which such subgrant was received, in14 
cluding— 
15 
(A) a description of each project carried 
16 
out, or planned to be carried out, with such 
17 
subgrant, including the types of modernization, 
18 
renovation, and repair to be completed by each 
19 
such project; 
20 
(B) the total amount of funds received by 
21 


the institution under this section and the 

22 


amount of such funds expended, as of the date 

23 


of the report, on the such projects; 

24 


(C) the actual or planned cost of each such 

25 


project and any demonstrable or expected aca


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1 


demic, energy, or environmental benefits result


2 


ing from such project; and 

3 


(D) the total number of contracts, and 

4 


amount of funding for such contracts, awarded 

5 


by the institution to carry out such projects, as 
6 
of the date of such report, including the num7 
ber of contracts, and amount of funding for 
8 
such contracts, awarded to local, small, minor9 
ity-owned, women-owned, and veteran-owned 
10 
businesses, as such terms are defined by the 
11 
Small Business Act. 
12 
(2) REPORTS BY STATES.—Not later than De13 
cember 31, 2011, each State higher education agen14 
cy receiving a grant under this section shall submit 
15 
to the Secretary a report containing a compilation of 
16 
all of the reports under paragraph (1) submitted to 
17 
the agency by institutions of higher education. 
18 
(3) REPORTS BY THE SECRETARY.—Not later 
19 
than March 31, 2012, the Secretary shall submit to 
20 
the Committee on Education and Labor in the 
21 


House of Representatives and the Committee on 

22 


Health, Education, Labor, and Pensions in the Sen


23 


ate and Committees on Appropriations of the House 

24 


of Representatives and the Senate a report on 

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1 


grants and subgrants made under this section, in


2 


cluding the information described in paragraph (1). 

3 


(g) DEFINITIONS.—In this section: 

4 


(1) CHPS CRITERIA.—The term ‘‘CHPS Cri


5 


teria’’ means the green building rating program de6 
veloped by the Collaborative for High Performance 
7 
Schools. 
8 
(2) ENERGY STAR.—The term ‘‘Energy Star’’ 
9 
means the Energy Star program of the United 
10 
States Department of Energy and the United States 
11 
Environmental Protection Agency. 
12 
(3) GREEN GLOBES.—The term ‘‘Green 
13 
Globes’’ means the Green Building Initiative envi14 
ronmental design and rating system referred to as 
15 
Green Globes. 
16 
(4) INSTITUTION OF HIGHER EDUCATION.—The 
17 
term ‘‘institution of higher education’’ has the 
18 
meaning given such term in section 101 of the High19 
er Education Act of 1965. 
20 
(5) LEED GREEN BUILDING RATING SYS21 


TEM.—The term ‘‘LEED Green Building Rating 

22 


System’’ means the United States Green Building 

23 


Council Leadership in Energy and Environmental 

24 


Design green building rating standard referred to as 

25 


the LEED Green Building Rating System. 

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1 


(6) SECRETARY.—The term ‘‘Secretary’’ means 

2 


the Secretary of Education. 

3 


(7) STATE.—The term ‘‘State’’ has the mean


4 


ing given such term in section 103 of the Higher 

5 


Education Act of 1965 (20 U.S.C. 1003). 
6 
(8) STATE HIGHER EDUCATION AGENCY.—The 
7 
term ‘‘State higher education agency’’ has the mean8 
ing given such term in section 103 of the Higher 
9 
Education Act of 1965 (20 U.S.C. 1003). 
10 
SEC. 9303. MANDATORY PELL GRANTS. 
11 
Section 401(b)(9)(A) of the Higher Education Act of 
12 
1965 (20 U.S.C. 1070a(b)(9)(A)) is amended— 
13 
(1) in clause (ii), by striking ‘‘$2,090,000,000’’ 
14 
and inserting ‘‘$2,733,000,000’’; and 
15 
(2) in clause (iii), by striking ‘‘$3,030,000,000’’ 
16 
and inserting ‘‘$3,861,000,000’’. 
17 
SEC. 9304. INCREASE STUDENT LOAN LIMITS. 
18 
(a) AMENDMENTS.—Section 428H(d) of the Higher 
19 
Education Act of 1965 (20 U.S.C. 1078-8(d)) is amend20 
ed— 
21 


(1) in paragraph (3)— 

22 


(A) in subparagraph (A), by striking 

23 


‘‘$2,000’’ and inserting ‘‘$4,000’’; and 

24 


(B) in subparagraph (B), by striking 

25 


‘‘$31,000’’ and inserting ‘‘$39,000’’; and 

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1 


(2) in paragraph (4)— 

2 


(A) in subparagraph (A)— 

3 


(i) in clause (i)(I) and clause (iii)(I), 

4 


by striking ‘‘$6,000’’ each place it appears 

5 


and inserting ‘‘$8,000’’; and 
6 
(ii) in clause (ii)(I) and clause 
7 
(iii)(II), by striking ‘‘$7,000’’ each place it 
8 
appears and inserting ‘‘$9,000’’; and 
9 
(B) in subparagraph (B), by striking 
10 
‘‘$57,500’’ and inserting ‘‘$65,500’’. 
11 
(b) EFFECTIVE DATE.—The amendments made by 
12 
this section shall be effective for loans first disbursed on 
13 
or after January 1, 2009. 
14 
SEC. 9305. STUDENT LENDER SPECIAL ALLOWANCE. 
15 
(a) TEMPORARY CALCULATION RULE.—Section 
16 
438(b)(2)(I) of the Higher Education Act of 1965 (20 
17 
U.S.C. 1087-1(b)(2)(I)) is amended by adding at the end 
18 
the following new clause: 
19 
‘‘(vii) TEMPORARY CALCULATION 
20 
RULE DURING UNSTABLE COMMERCIAL 
21 


PAPER MARKETS.— 
22 
‘‘(I) CALCULATION BASED ON 
23 


LIBOR.—For the calendar quarter be


24 


ginning on October 1, 2008, and end


25 


ing on December 31, 2008, in com


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194 

1 


puting the special allowance paid pur


2 


suant to this subsection with respect 

3 


to loans for which the first disburse


4 


ment is made on or after January 1, 

5 


2000, clause (i)(I) of this subpara6 
graph shall be applied by substituting 
7 
‘the rate that is the average rate of 
8 
the 3-month London Inter Bank Of9 
fered Rate (LIBOR) for United 
10 
States dollars in effect for each of the 
11 
days in such quarter as compiled and 
12 
released by the British Bankers Asso13 
ciation, minus 0.13 percent,’ for ‘the 
14 
average of the bond equivalent rates 
15 
of the quotes of the 3-month commer16 
cial paper (financial) rates in effect 
17 
for each of the days in such quarter 
18 
as reported by the Federal Reserve in 
19 
Publication H-15 (or its successor) for 
20 
such 3-month period’. 
21 
‘‘(II) PARTICIPATION INTER22 


ESTS.—Notwithstanding subclause (I) 

23 


of this clause, the special allowance 

24 


paid on any loan held by a lender that 
25 
has sold participation interests in 

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195 

1 


such loan to the Secretary shall be the 

2 


rate computed under this subpara


3 


graph without regard to subclause (I) 

4 


of this clause, unless the lender agrees 

5 


that the participant’s yield with re6 
spect to such participation interest is 
7 
to be calculated in accordance with 
8 
subclause (I) of this clause.’’. 
9 
(b) CONFORMING AMENDMENTS.—Section 
10 
438(b)(2)(I) of the Higher Education Act of 1965 (20 
11 
U.S.C. 1087-1(b)(2)(I)) is further amended— 
12 
(1) in clause (i)(II), by striking ‘‘such average 
13 
bond equivalent rate’’ and inserting ‘‘the rate deter14 
mined under subclause (I)’’; and 
15 
(2) in clause (v)(III), by striking ‘‘(iv), and 
16 
(vi)’’ and inserting ‘‘(iv), (vi), and (vii)’’. 
17 
Subtitle D—Related Agencies 
18 
CORPORATION FOR NATIONAL AND COMMUNITY SERVICE 
19 
OPERATING EXPENSES 
20 
For an additional amount for ‘‘Operating Expenses’’ 
21 
to carry out the Domestic Volunteer Service Act of 1973 
22 
and the National and Community Service Act of 1990 
23 
(‘‘1990 Act’’), $160,000,000, which shall be used to ex24 
pand existing AmeriCorps grants: Provided, That funds 
25 
made available under this heading may be used to provide 

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196 


1 
adjustments to awards made prior to September 30, 2010 
2 
in order to waive the match requirement authorized in sec3 
tion 121(e)(4) of part I of subtitle C of the 1990 Act, 
4 
if the Chief Executive Officer of the Corporation for Na5 
tional and Community Service (‘‘CEO’’) determines that 
6 
the grantee has reduced capacity to meet this requirement: 
7 
Provided further, That in addition to requirements identi8 
fied herein, funds provided under this heading shall be 
9 
subject to the terms and conditions under which funds are 
10 
appropriated in fiscal year 2009: Provided further, That 
11 
the CEO shall provide the Committees on Appropriations 
12 
of the House of Representatives and the Senate a fiscal 
13 
year 2009 operating plan for the funds appropriated under 
14 
this heading prior to making any Federal obligations of 
15 
such funds in fiscal year 2009, but not later than 90 days 
16 
after the date of enactment of this Act, and a fiscal year 
17 
2010 operating plan for such funds prior to making any 
18 
Federal obligations of such funds in fiscal year 2010, but 
19 
not later than November 1, 2009, that detail the allocation 
20 
of resources and the increased number of volunteers sup21 
ported by the AmeriCorps programs: Provided further, 
22 
That the CEO shall provide to the Committees on Appro23 
priations of the House of Representatives and the Senate 
24 
a report on the actual obligations, expenditures, and unob25 
ligated balances for each activity funded under this head-

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197 
1 
ing not later than November 1, 2009, and every 6 months 
2 
thereafter as long as funding provided under this heading 
3 
is available for obligation or expenditure. 
4 


NATIONAL SERVICE TRUST 

5 


(INCLUDING TRANSFER OF FUNDS) 
6 
For an additional amount for ‘‘National Service 
7 
Trust’’ established under subtitle D of title I of the Na8 
tional and Community Service Act of 1990 (‘‘1990 Act’’), 
9 
$40,000,000, which shall remain available until expended: 
10 
Provided, That the Corporation for National and Commu11 
nity Service may transfer additional funds from the 
12 
amount provided within ‘‘Operating Expenses’’ for grants 
13 
made under subtitle C of the 1990 Act to this appropria14 
tion upon determination that such transfer is necessary 
15 
to support the activities of national service participants 
16 
and after notice is transmitted to the Committees on Ap17 
propriations of the House of Representatives and the Sen18 
ate: Provided further, That the amount appropriated for 
19 
or transferred to the National Service Trust may be in20 
vested under section 145(b) of the 1990 Act without re21 
gard to the requirement to apportion funds under 31 
22 
U.S.C. 1513(b). 

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198 

1 


SOCIAL SECURITY ADMINISTRATION 

2 


LIMITATION ON ADMINISTRATIVE EXPENSES 

3 


(INCLUDING TRANSFER OF FUNDS) 

4 


For an additional amount for ‘‘Limitation on Admin5 
istrative Expenses’’, $900,000,000, which shall be used as 
6 
follows: 
7 
(1) $400,000,000 for the construction and asso8 
ciated costs to establish a new National Computer 
9 
Center, which may include lease or purchase of real 
10 
property: Provided, That the construction plan and 
11 
site selection for such center shall be subject to re12 
view and approval by the Office of Management and 
13 
Budget: Provided further, That the Committees on 
14 
Appropriations of the House of Representatives and 
15 
the Senate shall be notified 15 days in advance of 
16 
the lease or purchase of such site: Provided further, 
17 
That such center shall continue to be a government18 
operated facility; and 
19 
(2) $500,000,000 for processing disability and 
20 
retirement workloads: Provided, That up to 
21 


$40,000,000 may be used by the Commissioner of 

22 


Social Security for health information technology re


23 


search and activities to facilitate the adoption of 

24 


electronic medical records in disability claims, in


25 


cluding the transfer of funds to ‘‘Supplemental Se-

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199 

1 


curity Income Program’’ to carry out activities 

2 


under section 1110 of the Social Security Act. 

3 
TITLE X—MILITARY CONSTRUC


4 


TION AND VETERANS AF


5 


FAIRS 

6 
DEPARTMENT OF DEFENSE 

7 
MILITARY CONSTRUCTION, ARMY 

8 
For an additional amount for ‘‘Military Construction, 

9 
Army’’, $920,000,000: Provided, That notwithstanding 
10 
any other provision of law, such funds may be obligated 
11 
and expended to carry out planning and design and mili12 
tary construction projects in the United States not other13 
wise authorized by law: Provided further, That of the 
14 
amount provided under this heading, $600,000,000 shall 
15 
be for training and recruit troop housing, $220,000,000 
16 
shall be for permanent party troop housing, and 
17 
$100,000,000 shall be for child development centers: Pro18 
vided further, That not later than 30 days after the date 
19 
of enactment of this Act, the Secretary of Defense shall 
20 
submit to the Committees on Appropriations of the House 
21 
of Representatives and the Senate an expenditure plan for 
22 
funds provided under this heading. 
23 
MILITARY CONSTRUCTION, NAVY AND MARINE CORPS 
24 


For an additional amount for ‘‘Military Construction, 
25 
Navy and Marine Corps’’, $350,000,000: Provided, That 

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1 
notwithstanding any other provision of law, such funds 
2 
may be obligated and expended to carry out planning and 
3 
design and military construction projects in the United 
4 
States not otherwise authorized by law: Provided further, 
5 
That of the amount provided under this heading, 
6 
$170,000,000 shall be for sailor and marine housing and 
7 
$180,000,000 shall be for child development centers: Pro8 
vided further, That not later than 30 days after the date 
9 
of enactment of this Act, the Secretary of Defense shall 
10 
submit to the Committees on Appropriations of the House 
11 
of Representatives and the Senate an expenditure plan for 
12 
funds provided under this heading. 
13 
MILITARY CONSTRUCTION, AIR FORCE 
14 
For an additional amount for ‘‘Military Construction, 
15 
Air Force’’, $280,000,000: Provided, That notwith16 
standing any other provision of law, such funds may be 
17 
obligated and expended to carry out planning and design 
18 
and military construction projects in the United States not 
19 
otherwise authorized by law: Provided further, That of the 
20 
amount provided under this heading, $200,000,000 shall 
21 
be for airmen housing and $80,000,000 shall be for child 
22 
development centers: Provided further, That not later than 
23 
30 days after the date of enactment of this Act, the Sec24 
retary of Defense shall submit to the Committees on Ap25 
propriations of the House of Representatives and the Sen


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201 
1 
ate an expenditure plan for funds provided under this 
2 
heading. 
3 


MILITARY CONSTRUCTION, DEFENSE-WIDE 

4 


For an additional amount for ‘‘Military Construction, 
5 
Defense-Wide’’, $3,750,000,000, for the construction of 
6 
hospitals and ambulatory surgery centers: Provided, That 
7 
notwithstanding any other provision of law, such funds 
8 
may be obligated and expended to carry out planning and 
9 
design and military construction projects in the United 
10 
States not otherwise authorized by law: Provided further, 
11 
That not later than 30 days after the date of enactment 
12 
of this Act, the Secretary of Defense shall submit to the 
13 
Committees on Appropriations of the House of Represent14 
atives and the Senate an expenditure plan for funds pro15 
vided under this heading. 
16 
MILITARY CONSTRUCTION, ARMY NATIONAL GUARD 
17 
For an additional amount for ‘‘Military Construction, 
18 
Army National Guard’’, $140,000,000: Provided, That 
19 
notwithstanding any other provision of law, such funds 
20 
may be obligated and expended to carry out planning and 
21 
design and military construction projects in the United 
22 
States not otherwise authorized by law: Provided further, 
23 
That not later than 30 days after the date of enactment 
24 
of this Act, the Secretary of Defense shall submit to the 
25 
Committees on Appropriations of the House of Represent-

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1 
atives and the Senate an expenditure plan for funds pro2 
vided under this heading. 
3 


MILITARY CONSTRUCTION, AIR NATIONAL GUARD 

4 


For an additional amount for ‘‘Military Construction, 
5 
Air National Guard’’, $70,000,000: Provided, That not6 
withstanding any other provision of law, such funds may 
7 
be obligated and expended to carry out planning and de8 
sign and military construction projects in the United 
9 
States not otherwise authorized by law: Provided further, 
10 
That not later than 30 days after the date of enactment 
11 
of this Act, the Secretary of Defense shall submit to the 
12 
Committees on Appropriations of the House of Represent13 
atives and the Senate an expenditure plan for funds pro14 
vided under this heading. 
15 
MILITARY CONSTRUCTION, ARMY RESERVE 
16 
For an additional amount for ‘‘Military Construction, 
17 
Army Reserve’’, $100,000,000: Provided, That notwith18 
standing any other provision of law, such funds may be 
19 
obligated and expended to carry out planning and design 
20 
and military construction projects in the United States not 
21 
otherwise authorized by law: Provided further, That not 
22 
later than 30 days after the date of enactment of this Act, 
23 
the Secretary of Defense shall submit to the Committees 
24 
on Appropriations of the House of Representatives and the 

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1 
Senate an expenditure plan for funds provided under this 
2 
heading. 
3 


MILITARY CONSTRUCTION, NAVY RESERVE 

4 


For an additional amount for ‘‘Military Construction, 
5 
Navy Reserve’’, $30,000,000: Provided, That notwith6 
standing any other provision of law, such funds may be 
7 
obligated and expended to carry out planning and design 
8 
and military construction projects in the United States not 
9 
otherwise authorized by law: Provided further, That not 
10 
later than 30 days after the date of enactment of this Act, 
11 
the Secretary of Defense shall submit to the Committees 
12 
on Appropriations of the House of Representatives and the 
13 
Senate an expenditure plan for funds provided under this 
14 
heading. 
15 
MILITARY CONSTRUCTION, AIR FORCE RESERVE 
16 
For an additional amount for ‘‘Military Construction, 
17 
Air Force Reserve’’, $60,000,000: Provided, That notwith18 
standing any other provision of law, such funds may be 
19 
obligated and expended to carry out planning and design 
20 
and military construction projects in the United States not 
21 
otherwise authorized by law: Provided further, That not 
22 
later than 30 days after the date of enactment of this Act, 
23 
the Secretary of Defense shall submit to the Committees 
24 
on Appropriations of the House of Representatives and the 

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204 
1 
Senate an expenditure plan for funds provided under this 
2 
heading. 
3 


DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 

4 


1990 

5 


For an additional amount to be deposited into the 
6 
Department of Defense Base Closure Account 1990, es7 
tablished by section 2906(a)(1) of the Defense Base Clo8 
sure and Realignment Act of 1990 (10 U.S.C. 2687 note), 
9 
$300,000,000: Provided, That not later than 30 days after 
10 
the date of enactment of this Act, the Secretary of Defense 
11 
shall submit to the Committees on Appropriations of the 
12 
House of Representatives and the Senate an expenditure 
13 
plan for funds provided under this heading. 
14 
DEPARTMENT OF VETERANS AFFAIRS 
15 
VETERANS HEALTH ADMINISTRATION 
16 
MEDICAL FACILITIES 
17 
For an additional amount for ‘‘Medical Facilities’’ for 
18 
non-recurring maintenance, including energy projects, 
19 
$950,000,000: Provided, That not later than 30 days after 
20 
the date of enactment of this Act, the Secretary of Vet21 
erans Affairs shall submit to the Committees on Appro22 
priations of the House of Representatives and the Senate 
23 
an expenditure plan for funds provided under this head24 
ing. 

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205 

1 


NATIONAL CEMETERY ADMINISTRATION 

2 


For an additional amount for ‘‘National Cemetery 
3 
Administration’’ for monument and memorial repairs, 
4 
$50,000,000: Provided, That not later than 30 days after 
5 
the date of enactment of this Act, the Secretary of Vet6 
erans Affairs shall submit to the Committees on Appro7 
priations of the House of Representatives and the Senate 
8 
an expenditure plan for funds provided under this head9 
ing. 
10 
TITLE XI—DEPARTMENT OF 
11 
STATE 
12 
DEPARTMENT OF STATE 
13 
ADMINISTRATION OF FOREIGN AFFAIRS 
14 
CAPITAL INVESTMENT FUND 
15 
For an additional amount for ‘‘Capital Investment 
16 
Fund’’, $276,000,000, of which up to $120,000,000 shall 
17 
be available for the design and construction of a backup 
18 
information management facility in the United States to 
19 
support mission-critical operations and projects, and up 
20 
to $98,527,000 shall be available to carry out the Depart21 
ment of State’s responsibilities under the Comprehensive 
22 
National Cybersecurity Initiative: Provided, That the Sec23 
retary of State shall submit to the Committees on Appro24 
priations of the House of Representatives and the Senate 

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1 
within 90 days of enactment of this Act a detailed spend2 
ing plan for funds appropriated under this heading. 
3 


INTERNATIONAL COMMISSIONS 

4 


INTERNATIONAL BOUNDARY AND WATER COMMISSION, 

5 


UNITED STATES AND MEXICO 
6 
CONSTRUCTION 
7 
(INCLUDING TRANSFER OF FUNDS) 
8 
For an additional amount for ‘‘Construction’’ for the 
9 
water quantity program to meet immediate repair and re10 
habilitation requirements, $224,000,000: Provided, That 
11 
up to $2,000,000 may be transferred to, and merged with, 
12 
funds available under the heading ‘‘International Bound13 
ary and Water Commission, United States and Mexico— 
14 
Salaries and Expenses’’, and such amount shall be in lieu 
15 
of amounts available under section 1106 of this Act: Pro16 
vided, That the Secretary of State shall submit to the 
17 
Committees on Appropriations of the House of Represent18 
atives and the Senate within 90 days of enactment of this 
19 
Act a detailed spending plan for funds appropriated under 
20 
this heading. 

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207 


1 
TITLE XII—TRANSPORTATION, 

2 


AND HOUSING AND URBAN 

3 


DEVELOPMENT 

4 


DEPARTMENT OF TRANSPORTATION 

5 


FEDERAL AVIATION ADMINISTRATION 
6 
GRANTS-IN-AID FOR AIRPORTS 
7 
For an additional amount for ‘‘Grants-in-Aid for Air8 
ports’’, to enable the Secretary of Transportation to make 
9 
grants for discretionary projects as authorized by sub10 
chapter I of chapter 471 and subchapter I of chapter 475 
11 
of title 49, United States Code, $3,000,000,000: Provided, 
12 
That such funds shall not be subject to apportionment for13 
mulas, special apportionment categories, or minimum per14 
centages under chapter 471: Provided further, That the 
15 
conditions, certifications, and assurances required for 
16 
grants under subchapter I of chapter 471 of such title 
17 
apply: Provided further, That for purposes of applying sec18 
tion 1104 of this Act to this appropriation, the deadline 
19 
for grantees to enter into contracts or other binding com20 
mitments to make use of not less than 50 percent of the 
21 
funds awarded shall be 120 days after award of the grant. 
22 


FEDERAL HIGHWAY ADMINISTRATION 

23 


HIGHWAY INFRASTRUCTURE INVESTMENT 

24 


For projects and activities eligible under section 133 
25 
of title 23, United States Code, section 144 of such title 

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1 
(without regard to subsection (g)), and sections 103, 119, 
2 
134, 148, and 149 of such title, $30,000,000,000, of 
3 
which $300,000,000 shall be for Indian reservation roads 
4 
under section 204 of such title; $250,000,000 shall be for 
5 
park roads and parkways under section 204 of such title; 
6 
$20,000,000 shall be for highway surface transportation 
7 
and technology training under section 140(b) of such title; 
8 
and $20,000,000 shall be for disadvantaged business en9 
terprises bonding assistance under section 332(e) of title 
10 
49, United States Code: Provided, That the amount set 
11 
aside from this appropriation pursuant to section 1106 of 
12 
this Act shall not be more than 0.2 percent of the funds 
13 
made available under this heading instead of the percent14 
age specified in such section: Provided further, That, after 
15 
making the set-asides authorized by the previous provisos, 
16 
the funds made available under this heading shall be dis17 
tributed among the States, and Puerto Rico, American 
18 
Samoa, Guam, the Virgin Islands, and the Commonwealth 
19 
of the Northern Mariana Islands, in the same ratio as the 
20 
obligation limitation for fiscal year 2008 was distributed 
21 
among the States in accordance with the formula specified 
22 
in section 120(a)(6) of division K of Public Law 110–161, 
23 
but, in the case of the Puerto Rico Highway Program and 
24 
the Territorial Highway Program, under section 120(a)(5) 
25 
of such division: Provided further, That 45 percent of the 

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1 
funds distributed to a State under this heading shall be 
2 
suballocated within the State in the manner and for the 
3 
purposes described in section 133(d) of title 23, United 
4 
States Code, (without regard to the comparison to fiscal 
5 
year 2005 in paragraph (2)): Provided further, That in 
6 
selecting projects to be funded, recipients shall give pri7 
ority to projects that can award contracts within 120 days 
8 
of enactment of this Act, are included in an approved 
9 
Statewide Transportation Improvement Program (STIP) 
10 
and/or Metropolitan Transportation Improvement Pro11 
gram (TIP), are projected for completion within a three12 
year time frame, and are located in economically dis13 
tressed areas as defined by section 301 of the Public 
14 
Works and Economic Development Act of 1965, as 
15 
amended (42 U.S.C. 3161): Provided further, That funds 
16 
made available under this heading shall be administered 
17 
as if apportioned under chapter 1 of title 23, United 
18 
States Code, except for funds made available for Indian 
19 
reservation roads and park roads and parkways which 
20 
shall be administered in accordance with chapter 2 of title 
21 
23, United States Code: Provided further, That the Fed22 
eral share payable on account of any project or activity 
23 
carried out with funds made available under this heading 
24 
shall, at the option of the recipient, be up to 100 percent 
25 
of the total cost thereof: Provided further, That funds 

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1 
made available by this Act shall not be obligated for the 
2 
purposes authorized under section 115(b) of title 23, 
3 
United States Code: Provided further, That the provisions 
4 
of section 1101(b) of Public Law 109–59 shall apply to 
5 
funds made available under this heading: Provided further, 
6 
That, in lieu of the redistribution required by section 
7 
1104(b) of this Act, if less than 50 percent of the funds 
8 
made available to each State and territory under this 
9 
heading are obligated within 180 days after the date of 
10 
distribution of those funds to the States and territories, 
11 
then the portion of the 50 percent of the total funding 
12 
distributed to the State or territory that has not been obli13 
gated shall be redistributed, in the manner described in 
14 
section 120(c) of division K of Public Law 110–161, to 
15 
those States and territories that have obligated at least 
16 
50 percent of the funds made available under this heading 
17 
and are able to obligate amounts in addition to those pre18 
viously distributed, except that, for those funds suballo19 
cated within the State, if less than 50 percent of the funds 
20 
so suballocated within the State are obligated within 150 
21 
days of suballocation, then the portion of the 50 percent 
22 
of funding so suballocated that has not been obligated will 
23 
be returned to the State for use anywhere in the State 
24 
prior to being redistributed in accordance with the first 
25 
part of this proviso: Provided further, That, in lieu of the 

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1 
redistribution required by section 1104(b) of this Act, any 
2 
funds made available under this heading that are not obli3 
gated by August 1, 2010, shall be redistributed, in the 
4 
manner described in section 120(c) of division K of Public 
5 
Law 110–161, to those States able to obligate amounts 
6 
in addition to those previously distributed, except that 
7 
funds suballocated within the State that are not obligated 
8 
by June 1, 2010, will be returned to the State for use 
9 
anywhere in the State prior to being redistributed in ac10 
cordance with the first part of this proviso: Provided fur11 
ther, That notwithstanding section 1103 of this Act, funds 
12 
made available under this heading shall be apportioned not 
13 
later than 7 days after the date of enactment of this Act. 
14 
FEDERAL RAILROAD ADMINISTRATION 
15 
CAPITAL ASSISTANCE FOR INTERCITY PASSENGER RAIL 
16 
SERVICE 
17 
For an additional amount for ‘‘Capital Assistance for 
18 
Intercity Passenger Rail Service’’ to enable the Secretary 
19 
of Transportation to make grants for capital costs as au20 
thorized by chapter 244 of title 49 United States Code, 
21 
$300,000,000: Provided, That notwithstanding section 
22 
1103 of this Act, the Secretary shall give preference to 
23 
projects for the repair, rehabilitation, upgrade, or pur24 
chase of railroad assets or infrastructure that can be 
25 
awarded within 180 days of enactment of this Act: Pro-

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1 
vided further, That in awarding grants for the acquisition 
2 
of a piece of rolling stock or locomotive, the Secretary shall 
3 
give preference to FRA-compliant rolling stock and loco4 
motives: Provided further, That the Secretary shall give 
5 
preference to projects that support the development of 
6 
intercity high speed rail service: Provided further, That the 
7 
Federal share shall be, at the option of the recipient, up 
8 
to 100 percent. 
9 
CAPITAL AND DEBT SERVICE GRANTS TO THE NATIONAL 
10 
RAILROAD PASSENGER CORPORATION 
11 
For an additional amount for ‘‘Capital and Debt 
12 
Service Grants to the National Railroad Passenger Cor13 
poration’’ (Amtrak) to enable the Secretary of Transpor14 
tation to make capital grants to Amtrak as authorized by 
15 
section 101(c) of the Passenger Rail Investment and Im16 
provement Act of 2008 (Public Law 110–432), 
17 
$800,000,000: Provided, That priority shall be given to 
18 
projects for the repair, rehabilitation, or upgrade of rail19 
road assets or infrastructure: Provided further, That none 
20 
of the funds under this heading shall be used to subsidize 
21 
the operating losses of Amtrak: Provided further, Notwith22 
standing section 1103 of this Act, funds made available 
23 
under this heading shall be awarded not later than 7 days 
24 
after the date of enactment of this Act. 

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1 


FEDERAL TRANSIT ADMINISTRATION 

2 


TRANSIT CAPITAL ASSISTANCE 
3 
For transit capital assistance grants, 
4 
$6,000,000,000, of which $5,400,000,000 shall be for 
5 
grants under section 5307 of title 49, United States Code 
6 
and shall be apportioned in accordance with section 5336 
7 
of such title (other than subsections (i)(1) and (j)) but 
8 
may not be combined or commingled with any other funds 
9 
apportioned under such section 5336, and of which 
10 
$600,000,000 shall be for grants under section 5311 of 
11 
such title and shall be apportioned in accordance with such 
12 
section 5311 but may not be combined or commingled with 
13 
any other funds apportioned under that section: Provided, 
14 
That of the funds provided for section 5311 under this 
15 
heading, 3 percent shall be made available for section 
16 
5311(c)(1): Provided further, That applicable chapter 53 
17 
requirements shall apply except that the Federal share of 
18 
the costs for which a grant is made under this heading 
19 
shall be, at the option of the recipient, up to 100 percent: 
20 
Provided further, In lieu of the requirements of section 
21 
1103 of this Act, funds made available under this heading 
22 
shall be apportioned not later than 7 days after the date 
23 
of enactment of this Act: Provided further, That for pur24 
poses of applying section 1104 of this Act to this appro25 
priation, the deadline for grantees to enter into obligations 

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1 
to make use of not less than 50 percent of the funds 
2 
awarded shall be 180 days after apportionment: Provided 
3 
further, That the provisions of section 1101(b) of Public 
4 
Law 109–59 shall apply to funds made available under 
5 
this heading: Provided further, That notwithstanding any 
6 
other provision of law, of the funds apportioned in accord7 
ance with section 5336, up to three-quarters of 1 percent 
8 
shall be available for administrative expenses and program 
9 
management oversight and of the funds apportioned in ac10 
cordance with section 5311, up to one-half of 1 percent 
11 
shall be available for administrative expenses and program 
12 
management oversight and both amounts shall remain 
13 
available for obligation until September 30, 2012: Pro14 
vided further, That the preceding proviso shall apply in 
15 
lieu of the provisions in section 1106 of this Act. 
16 
FIXED GUIDEWAY INFRASTRUCTURE INVESTMENT 
17 
For an amount for capital expenditures authorized 
18 
under section 5309(b)(2) of title 49, United States Code, 
19 
$2,000,000,000: Provided, That the Secretary of Trans20 
portation shall apportion funds under this heading pursu21 
ant to the formula set forth in section 5337 of title 49, 
22 
United States Code: Provided further, That the funds ap23 
propriated under this heading shall not be commingled 
24 
with funds available under the Formula and Bus Grants 
25 
account: Provided further, In lieu of the requirements of 

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1 
section 1103 of this Act, funds made available under this 
2 
heading shall be apportioned not later than 7 days after 
3 
the date of enactment of this Act: Provided further, That 
4 
for purposes of applying section 1104 of this Act to this 
5 
appropriation, the deadline for grantees to enter into obli6 
gations to make use of not less than 50 percent of the 
7 
funds awarded shall be 180 days after apportionment: 
8 
Provided further, That applicable chapter 53 requirements 
9 
shall apply except that the Federal share of the costs for 
10 
which a grant is made under this heading shall be, at the 
11 
option of the recipient, up to 100 percent: Provided fur12 
ther, That the provisions of section 1101(b) of Public Law 
13 
109–59 shall apply to funds made available under this 
14 
heading: Provided further, That notwithstanding any other 
15 
provision of law, up to 1 percent of the funds under this 
16 
heading shall be available for administrative expenses and 
17 
program management oversight and shall remain available 
18 
for obligation until September 30, 2012: Provided further, 
19 
That the preceding proviso shall apply in lieu of the provi20 
sions in section 1106 of this Act. 
21 


CAPITAL INVESTMENT GRANTS 

22 


For an additional amount for ‘‘Capital Investment 
23 
Grants’’, as authorized under section 5338(c)(4) of title 
24 
49, United States Code, and allocated under section 
25 
5309(m)(2)(A) of such title, to enable the Secretary of 

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216 
1 
Transportation to make discretionary grants as authorized 
2 
by section 5309(d) and (e) of such title, $1,000,000,000: 
3 
Provided, That such amount shall be allocated without re4 
gard to the limitation under section 5309(m)(2)(A)(i): 
5 
Provided further, That in selecting projects to be funded, 
6 
priority shall be given to projects that are currently in con7 
struction or are able to award contracts based on bids 
8 
within 120 days of enactment of this Act: Provided further, 
9 
That for purposes of applying section 1104 of this Act 
10 
to this appropriation, the deadline for grantees to enter 
11 
into contracts or other binding commitments to make use 
12 
of not less than 50 percent of the funds awarded shall 
13 
be 120 days after award: Provided further, That the provi14 
sions of section 1101(b) of Public Law 109–59 shall apply 
15 
to funds made available under this heading: Provided fur16 
ther, That applicable chapter 53 requirements shall apply, 
17 
except that notwithstanding any other provision of law, 
18 
up to 1 percent of the funds under this heading shall be 
19 
available for administrative expenses and program man20 
agement oversight and shall remain available for obliga21 
tion until September 30, 2012: Provided further, That the 
22 
preceding proviso shall apply in lieu of the provisions in 
23 
section 1106 of this Act. 

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1 


DEPARTMENT OF HOUSING AND URBAN 

2 


DEVELOPMENT 

3 


PUBLIC AND INDIAN HOUSING 

4 


PUBLIC HOUSING CAPITAL FUND 

5 


For an additional amount for ‘‘Public Housing Cap6 
ital Fund’’ to carry out capital and management activities 
7 
for public housing agencies, as authorized under section 
8 
9 of the United States Housing Act of 1937 (42 U.S.C. 
9 
1437g) (‘‘the Act’’), $5,000,000,000: Provided, That the 
10 
Secretary of Housing and Urban Development shall dis11 
tribute at least $4,000,000,000 of this amount by the 
12 
same formula used for amounts made available in fiscal 
13 
year 2008: Provided further, That public housing authori14 
ties shall give priority to capital projects that can award 
15 
contracts based on bids within 120 days from the date 
16 
the funds are made available to the public housing au17 
thorities: Provided further, That public housing agencies 
18 
shall give priority consideration to the rehabilitation of va19 
cant rental units: Provided further, That notwithstanding 
20 
any other provision of the Act or regulations, (1) funding 
21 
provided herein may not be used for Operating Fund ac22 
tivities pursuant to section 9(g) of the Act, and (2) any 
23 
restriction of funding to replacement housing uses shall 
24 
be inapplicable: Provided further, That public housing 
25 
agencies shall prioritize capital projects underway or al


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1 
ready in their 5-year plans: Provided further, That of the 
2 
amount provided under this heading, the Secretary may 
3 
obligate up to $1,000,000,000, for competitive grants to 
4 
public housing authorities for activities including: (1) in5 
vestments that leverage private sector funding or financ6 
ing for housing renovations and energy conservation ret7 
rofit investments; (2) rehabilitation of units using sustain8 
able materials and methods that improve energy efficiency, 
9 
reduce energy costs, or preserve and improve units with 
10 
good access to public transportation or employment cen11 
ters; (3) increase the availability of affordable rental hous12 
ing by expediting rehabilitation projects to bring vacant 
13 
units into use or by filling the capital investment gap for 
14 
redevelopment or replacement housing projects which have 
15 
been approved or are otherwise ready to proceed but are 
16 
stalled due to the inability to obtain anticipated private 
17 
capital; or (4) address the needs of seniors and persons 
18 
with disabilities through improvements to housing and re19 
lated facilities which attract or promote the coordinated 
20 
delivery of supportive services: Provided further, That the 
21 
Secretary may waive statutory or regulatory provisions re22 
lated to the obligation and expenditure of capital funds 
23 
if necessary to facilitate the timely expenditure of funds 
24 
(except for requirements related to fair housing, non25 
discrimination, labor standards, and the environment). 

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1 
ELDERLY, DISABLED, AND SECTION 8 ASSISTED HOUSING 
2 


ENERGY RETROFIT 

3 


For grants or loans to owners of properties receiving 
4 
project-based assistance pursuant to section 202 of the 
5 
Housing Act of 1959 (12 U.S.C. 17012), section 811 of 
6 
the Cranston-Gonzalez National Affordable Housing Act 
7 
(42 U.S.C. 8013), or section 8 of the United States Hous8 
ing Act of 1937 (42 U.S.C. 1437f), to accomplish energy 
9 
retrofit investments, $2,500,000,000: Provided, That such 
10 
loans or grants shall be provided through the Office of 
11 
Affordable Housing Preservation of the Department of 
12 
Housing and Urban Development, on such terms and con13 
ditions as the Secretary of Housing and Urban Develop14 
ment deems appropriate: Provided further, That eligible 
15 
owners must have at least a satisfactory management re16 
view rating, be in substantial compliance with applicable 
17 
performance standards and legal requirements, and com18 
mit to an additional period of affordability determined by 
19 
the Secretary: Provided further, That the Secretary shall 
20 
undertake appropriate underwriting and oversight with re21 
spect to such transactions: Provided further, That the Sec22 
retary may set aside funds made available under this 
23 
heading for an efficiency incentive payable upon satisfac24 
tory completion of energy retrofit investments, and may 
25 
provide additional incentives if such investments resulted 

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1 
in extraordinary job creation for low-income and very low


2 
income persons: Provided further, that of the funds pro


3 
vided under this heading, 1 percent shall be available only 

4 
for staffing, training, technical assistance, technology, 

5 
monitoring, research and evaluation activities. 

6 
NATIVE AMERICAN HOUSING BLOCK GRANTS 

7 
For an additional amount for ‘‘Native American 
8 
Housing Block Grants’’, as authorized under title I of the 
9 
Native American Housing Assistance and Self-Determina10 
tion Act of 1996 (‘‘NAHASDA’’) (25 U.S.C. 4111 et 
11 
seq.), $500,000,000: Provided, That $250,000,000 of the 
12 
amount appropriated under this heading shall be distrib13 
uted according to the same funding formula used in fiscal 
14 
year 2008: Provided further, That in selecting projects to 
15 
be funded, recipients shall give priority to projects that 
16 
can award contracts based on bids within 120 days from 
17 
the date that funds are available to the recipients: Pro18 
vided further, That in allocating the funds appropriated 
19 
under this heading, the Secretary of Housing and Urban 
20 
Development shall not require an additional action plan 
21 
from grantees: Provided further, That the Secretary may 
22 
obligate $250,000,000 of the amount appropriated under 
23 
this heading for competitive grants to eligible entities that 
24 
apply for funds as authorized under NAHASDA: Provided 
25 
further, That in awarding competitive funds, the Secretary 

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1 
shall give priority to projects that will spur construction 
2 
and rehabilitation and will create employment opportuni3 
ties for low-income and unemployed persons. 
4 


COMMUNITY PLANNING AND DEVELOPMENT 

5 


COMMUNITY DEVELOPMENT FUND 
6 
For an additional amount for ‘‘Community Develop7 
ment Fund’’ $1,000,000,000, to carry out the community 
8 
development block grant program under title I of the 
9 
Housing and Community Development Act of 1974 (42 
10 
U.S.C. 5301 et seq.): Provided, That the amount appro11 
priated in this paragraph shall be distributed according 
12 
to the same funding formula used in fiscal year 2008: Pro13 
vided further, That in allocating the funds appropriated 
14 
in this paragraph, the Secretary of Housing and Urban 
15 
Development shall not require an additional action plan 
16 
from grantees: Provided further, That in selecting projects 
17 
to be funded, recipients shall give priority to projects that 
18 
can award contracts based on bids within 120 days from 
19 
the date the funds are made available to the recipients; 
20 
Provided further, That in administering funds provided in 
21 
this paragraph, the Secretary may waive any provision of 
22 
any statute or regulation that the Secretary administers 
23 
in connection with the obligation by the Secretary or the 
24 
use by the recipient of these funds (except for require25 
ments related to fair housing, nondiscrimination, labor 

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222 
1 
standards, and the environment), upon a finding that such 
2 
waiver is required to facilitate the timely use of such funds 
3 
and would not be inconsistent with the overall purpose of 
4 
the statute. 
5 


For a further additional amount for ‘‘Community De6 
velopment Fund’’, $4,190,000,000, to be used for neigh7 
borhood stabilization activities related to emergency as8 
sistance for the redevelopment of abandoned and fore9 
closed homes as authorized under division B, title III of 
10 
the Housing and Economic Recovery Act of 2008 (Public 
11 
Law 110–289), of which— 
12 
(1) not less than $3,440,000,000 shall be allo13 
cated by a competition for which eligible entities 
14 
shall be States, units of general local government, 
15 
and nonprofit entities or consortia of nonprofit enti16 
ties: Provided, That the award criteria for such com17 
petition shall include grantee capacity, leveraging 
18 
potential, targeted impact of foreclosure prevention, 
19 
and any additional factors determined by the Sec20 
retary of Housing and Urban Development: Provided 
21 


further, that the Secretary may establish a minimum 

22 


grant size: Provided further, That amounts made 

23 


available under this Section may be used to (A) es


24 


tablish financing mechanisms for purchase and rede


25 


velopment of foreclosed-upon homes and residential 

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223 


1 


properties, including such mechanisms as soft-sec


2 


onds, loan loss reserves, and shared-equity loans for 

3 


low- and moderate-income homebuyers; (B) purchase 

4 


and rehabilitate homes and residential properties 

5 


that have been abandoned or foreclosed upon, in 
6 
order to sell or rent such homes and properties; (C) 
7 
establish and operate land banks for homes that 
8 
have been foreclosed upon; (D) demolish foreclosed 
9 
properties that have become blighted structures; and 
10 
(E) redevelop demolished or vacant foreclosed prop11 
erties in order to sell or rent such properties; and 
12 
(2) up to $750,000,000 shall be awarded by 
13 
competition to nonprofit entities or consortia of non14 
profit entities to provide community stabilization as15 
sistance by (A) accelerating state and local govern16 
ment and nonprofit productivity; (B) increasing the 
17 
scale and efficiency of property transfers of fore18 
closed and vacant residential properties from finan19 
cial institutions and government entities to qualified 
20 
local housing providers in order to return the prop21 


erties to productive affordable housing use; (C) 

22 


building industry and property management capac


23 


ity; and (D) partnering with private sector real es


24 


tate developers and contractors and leveraging pri


25 


vate sector capital: Provided further, That such com


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1 


munity stabilization assistance shall be provided pri


2 


marily in States and areas with high rates of de


3 


faults and foreclosures to support the acquisition, re


4 


habilitation and property management of single-fam


5 


ily and multi-family homes and to work in partner6 
ship with the private sector real estate industry and 
7 
to leverage available private and public funds for 
8 
those purposes: Provided further, That for purposes 
9 
of this paragraph qualified local housing providers 
10 
shall be nonprofit organizations with demonstrated 
11 
capabilities in real estate development or acquisition 
12 
and rehabilitation or property management of single-
13 
or multi-family homes, or local or state governments 
14 
or instrumentalities of such governments: Provided 
15 
further, That qualified local housing providers shall 
16 
be expected to utilize and leverage additional local 
17 
nonprofit, governmental, for-profit and private re18 
sources: 
19 
Provided further, That in the case of any foreclosure on 
20 
any dwelling or residential real property acquired with any 
21 
amounts made available under this heading, any successor 
22 
in interest in such property pursuant to the foreclosure 
23 
shall assume such interest subject to—(1) the provision 
24 
by such successor in interest of a notice to vacate to any 
25 
bona fide tenant at least 90 days before the effective date 

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1 
of such notice; and (2) the rights of any bona fide tenant, 
2 
as of the date of such notice of foreclosure (A) under any 
3 
bona fide lease entered into before the notice of foreclosure 
4 
to occupy the premises until the end of the remaining term 
5 
of the lease, except that a successor in interest may termi6 
nate a lease effective on the date of sale of the unit to 
7 
a purchaser who will occupy the unit as a primary resi8 
dence, subject to the receipt by the tenant of the 90-day 
9 
notice under this paragraph; or (B) without a lease or with 
10 
a lease terminable at will under State law, subject to the 
11 
receipt by the tenant of the 90-day notice under this para12 
graph, except that nothing in this paragraph shall affect 
13 
the requirements for termination of any Federal- or State14 
subsidized tenancy or of any State or local law that pro15 
vides longer time periods or other additional protections 
16 
for tenants: Provided further, That, for purposes of this 
17 
paragraph, a lease or tenancy shall be considered bona fide 
18 
only if (1) the mortgagor under the contract is not the 
19 
tenant; (2) the lease or tenancy was the result of an arms20 
length transaction; and (3) the lease or tenancy requires 
21 
the receipt of rent that is not substantially less than fair 
22 
market rent for the property: Provided further, That the 
23 
recipient of any grant or loan from amounts made avail24 
able under this heading may not refuse to lease a dwelling 
25 
unit in housing assisted with such loan or grant to a hold-

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1 
er of a voucher or certificate of eligibility under section 
2 
8 of the United States Housing Act of 1937 (42 U.S.C. 
3 
1437f) because of the status of the prospective tenant as 
4 
such a holder: Provided further, That in the case of any 
5 
qualified foreclosed housing for which funds made avail6 
able under this heading are used and in which a recipient 
7 
of assistance under section 8(o) of the U.S. Housing Act 
8 
of 1937 resides at the time of acquisition or financing, 
9 
the owner and any successor in interest shall be subject 
10 
to the lease and to the housing assistance payments con11 
tract for the occupied unit: Provided further, That 
12 
vacating the property prior to sale shall not constitute 
13 
good cause for termination of the tenancy unless the prop14 
erty is unmarketable while occupied or unless the owner 
15 
or subsequent purchaser desires the unit for personal or 
16 
family use: Provided further, That this paragraph shall not 
17 
preempt any State or local law that provides more protec18 
tion for tenants: Provided further, That amounts made 
19 
available under this heading may be used for the costs 
20 
of demolishing foreclosed housing that is deteriorated or 
21 
unsafe: Provided further, That the amount for demolition 
22 
of such housing may not exceed 10 percent of amounts 
23 
allocated under this paragraph to States and units of gen24 
eral local government: Provided further, That no amounts 
25 
from a grant made under this paragraph may be used to 

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1 
demolish any public housing (as such term is defined in 
2 
section 3 of the United States Housing Act of 1937 (42 
3 
U.S.C. 1437a)): Provided further, That section 2301(d)(4) 
4 
of the Housing and Economic Recovery Act of 2008 (Pub5 
lic Law 110–289) is repealed. 
6 
HOME INVESTMENT PARTNERSHIPS PROGRAM 
7 
For an additional amount for ‘‘HOME Investment 
8 
Partnerships Program’’ as authorized under Title II of the 
9 
Cranston-Gonzalez National Affordable Housing Act (‘‘the 
10 
Act’’), $1,500,000,000: Provided, That the amount appro11 
priated under this heading shall be distributed according 
12 
to the same funding formula used in fiscal year 2008: Pro13 
vided further, That the Secretary of Housing and Urban 
14 
Development may waive statutory or regulatory provisions 
15 
related to the obligation of such funds if necessary to fa16 
cilitate the timely expenditure of funds (except for require17 
ments related to fair housing, nondiscrimination, labor 
18 
standards, and the environment): Provided further, That 
19 
in selecting projects to be funded, recipients shall give pri20 
ority to projects that can award contracts based on bids 
21 
within 120 days from the date that funds are available 
22 
to the recipients. 

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1 


SELF-HELP AND ASSISTED HOMEOWNERSHIP 

2 


OPPORTUNITY PROGRAM 

3 


For an additional amount for ‘‘Self-Help and As4 
sisted Homeownership Opportunity Program’’, as author5 
ized under section 11 of the Housing Opportunity Pro6 
gram Extension Act of 1996, $10,000,000: Provided, That 
7 
in awarding competitive grant funds, the Secretary of 
8 
Housing and Urban Development shall give priority to the 
9 
provision and rehabilitation of sustainable, affordable sin10 
gle and multifamily units in low-income, high-need rural 
11 
areas: Provided further, That in selecting projects to be 
12 
funded, grantees shall give priority to projects that can 
13 
award contracts based on bids within 120 days from the 
14 
date the funds are made available to the grantee. 
15 
HOMELESS ASSISTANCE GRANTS 
16 
For an additional amount for ‘‘Homeless Assistance 
17 
Grants’’, for the emergency shelter grants program as au18 
thorized under subtitle B of tile IV of the McKinney-Vento 
19 
Homeless Assistance Act, $1,500,000,000: Provided, That 
20 
in addition to homeless prevention activities specified in 
21 
the emergency shelter grant program, funds provided 
22 
under this heading may be used for the provision of short23 
term or medium-term rental assistance; housing relocation 
24 
and stabilization services including housing search, medi25 
ation or outreach to property owners, legal services, credit 

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1 
repair, resolution of security or utility deposits, utility pay2 
ments, rental assistance for a final month at a location, 
3 
and moving costs assistance; or other appropriate home4 
lessness prevention activities; Provided further, That these 
5 
funds shall be allocated pursuant to the formula author6 
ized by section 413 of such Act: Provided further, That 
7 
the Secretary of Housing and Urban Development may 
8 
waive statutory or regulatory provisions related to the obli9 
gation and use of emergency shelter grant funds necessary 
10 
to facilitate the timely expenditure of funds. 
11 
OFFICE OF HEALTHY HOMES AND LEAD HAZARD 
12 
CONTROL 
13 
LEAD HAZARD REDUCTION 
14 
For an additional amount for ‘‘Lead Hazard Reduc15 
tion’’, for the Lead Hazard Reduction Program as author16 
ized by section 1011 of the Residential Lead-Based Paint 
17 
Hazard Reduction Act of 1992, $100,000,000: Provided, 
18 
That for purposes of environmental review, pursuant to 
19 
the National Environmental Policy Act of 1969 (42 U.S.C. 
20 
4321 et seq.) and other provisions of law that further the 
21 
purposes of such Act, a grant under the Healthy Homes 
22 
Initiative, Operation Lead Elimination Action Plan 
23 
(LEAP), or the Lead Technical Studies program under 
24 
this heading or under prior appropriations Acts for such 
25 
purposes under this heading, shall be considered to be 

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1 
funds for a special project for purposes of section 305(e) 
2 
of the Multifamily Housing Property Disposition Reform 
3 
Act of 1994: Provided further, That of the total amount 
4 
made available under this heading, $30,000,000 shall be 
5 
made available on a competitive basis for areas with the 
6 
highest lead paint abatement needs. 
7 
GENERAL PROVISIONS, THIS TITLE 
8 
SEC. 12001. MAINTENANCE OF EFFORT AND REPORTING 
9 
REQUIREMENTS TO ENSURE TRANSPARENCY 
10 
AND ACCOUNTABILITY. 
11 
(a) MAINTENANCE OF EFFORT.—Not later than 30 
12 
days after the date of enactment of this Act, for each 
13 
amount that is distributed to a State or agency thereof 
14 
from an appropriation in this Act for a covered program, 
15 
the Governor of the State shall certify that the State will 
16 
maintain its effort with regard to State funding for the 
17 
types of projects that are funded by the appropriation. As 
18 
part of this certification, the Governor shall submit to the 
19 
covered agency a statement identifying the amount of 
20 
funds the State planned to expend as of the date of enact21 
ment of this Act from non-Federal sources in the period 
22 
beginning on the date of enactment of this Act through 
23 
September 30, 2010, for the types of projects that are 
24 
funded by the appropriation. 
25 


(b) PERIODIC REPORTS.— 

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1 


(1) IN GENERAL.—Notwithstanding any other 

2 


provision of law, each grant recipient shall submit to 

3 


the covered agency from which they received funding 

4 


periodic reports on the use of the funds appropriated 

5 


in this Act for covered programs. Such reports shall 
6 
be collected and compiled by the covered agency and 
7 
transmitted to Congress. 
8 
(2) CONTENTS OF REPORTS.—For amounts re9 
ceived under each covered program by a grant re10 
cipient under this Act, the grant recipient shall in11 
clude in the periodic reports information tracking— 
12 
(A) the amount of Federal funds appro13 
priated, allocated, obligated, and outlayed under 
14 
the appropriation; 
15 
(B) the number of projects that have been 
16 
put out to bid under the appropriation and the 
17 
amount of Federal funds associated with such 
18 
projects; 
19 
(C) the number of projects for which con20 
tracts have been awarded under the appropria21 


tion and the amount of Federal funds associ


22 


ated with such contracts; 

23 


(D) the number of projects for which work 
24 
has begun under such contracts and the 

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1 


amount of Federal funds associated with such 

2 


contracts; 

3 


(E) the number of projects for which work 

4 


has been completed under such contracts and 

5 


the amount of Federal funds associated with 
6 
such contracts; 
7 
(F) the number of jobs created or sus8 
tained by the Federal funds provided for 
9 
projects under the appropriation, including in10 
formation on job sectors and pay levels; and 
11 
(G) for each covered program report infor12 
mation tracking the actual aggregate expendi13 
tures by each grant recipient from non-Federal 
14 
sources for projects eligible for funding under 
15 
the program during the period beginning on the 
16 
date of enactment of this Act through Sep17 
tember 30, 2010, as compared to the level of 
18 
such expenditures that were planned to occur 
19 
during such period as of the date of enactment 
20 
of this Act. 
21 


(3) TIMING OF REPORTS.—Each grant recipient 

22 


shall submit the first of the periodic reports required 

23 


under this subsection not later than 30 days after 

24 


the date of enactment of this Act and shall submit 

25 


updated reports not later than 60 days, 120 days, 

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1 


180 days, 1 year, and 3 years after such date of en


2 


actment. 

3 


(c) DEFINITIONS.—In this section, the following defi4 
nitions apply: 
5 


(1) COVERED AGENCY.—The term ‘‘covered 
6 
agency’’ means the Federal Aviation Administration, 
7 
the Federal Highway Administration, the Federal 
8 
Railroad Administration, and the Federal Transit 
9 
Administration of the Department of Transpor10 
tation. 
11 
(2) COVERED PROGRAM.—The term ‘‘covered 
12 
program’’ means funds appropriated in this Act for 
13 
‘‘Grants-in-Aid for Airports’’ to the Federal Aviation 
14 
Administration; for ‘‘Highway Infrastructure Invest15 
ment’’ to the Federal Highway Administration; for 
16 
‘‘Capital Assistance for Intercity Passenger Rail 
17 
Service’’ to the Federal Railroad Administration; for 
18 
‘‘Transit Capital Assistance’’, ‘‘Fixed Guideway In19 
frastructure Investment’’, and ‘‘Capital Investment 
20 
Grants’’ to the Federal Transit Administration. 
21 


(3) GRANT RECIPIENT.—The term ‘‘grant re


22 


cipient’’ means a State or other recipient of assist


23 


ance provided under a covered program in this Act. 

24 


Such term does not include a Federal department or 
25 
agency. 

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1 
SEC. 12002. FHA LOAN LIMITS FOR 2009. 
2 


(a) LOAN LIMIT FLOOR BASED ON 2008 LEVELS.— 
3 
For mortgages for which the mortgagee issues credit ap4 
proval for the borrower during calendar year 2009, if the 
5 
dollar amount limitation on the principal obligation of a 
6 
mortgage determined under section 203(b)(2) of the Na7 
tional Housing Act (12 U.S.C. 1709(b)(2)) for any size 
8 
residence for any area is less than such dollar amount lim9 
itation that was in effect for such size residence for such 
10 
area for 2008 pursuant to section 202 of the Economic 
11 
Stimulus Act of 2008 (Public Law 110-185; 122 Stat. 
12 
620), notwithstanding any other provision of law, the max13 
imum dollar amount limitation on the principal obligation 
14 
of a mortgage for such size residence for such area for 
15 
purposes of such section 203(b)(2) shall be considered (ex16 
cept for purposes of section 255(g) of such Act (12 U.S.C. 
17 
1715z–20(g))) to be such dollar amount limitation in ef18 
fect for such size residence for such area for 2008. 
19 
(b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 
20 
Notwithstanding any other provision of law, if the Sec21 
retary of Housing and Urban Development determines, for 
22 
any geographic area that is smaller than an area for which 
23 
dollar amount limitations on the principal obligation of a 
24 
mortgage are determined under section 203(b)(2) of the 
25 
National Housing Act, that a higher such maximum dollar 
26 
amount limitation is warranted for any particular size or 

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1 
sizes of residences in such sub-area by higher median 
2 
home prices in such sub-area, the Secretary may, for mort3 
gages for which the mortgagee issues credit approval for 
4 
the borrower during calendar year 2009, increase the max5 
imum dollar amount limitation for such size or sizes of 
6 
residences for such sub-area that is otherwise in effect (in7 
cluding pursuant to subsection (a) of this section), but in 
8 
no case to an amount that exceeds the amount specified 
9 
in section 202(a)(2) of the Economic Stimulus Act of 
10 
2008. 
11 
SEC. 12003. GSE CONFORMING LOAN LIMITS FOR 2009. 
12 
(a) LOAN LIMIT FLOOR BASED ON 2008 LEVELS.— 
13 
For mortgages originated during calendar year 2009, if 
14 
the limitation on the maximum original principal obliga15 
tion of a mortgage that may purchased by the Federal 
16 
National Mortgage Association or the Federal Home Loan 
17 
Mortgage Corporation determined under section 302(b)(2) 
18 
of the Federal National Mortgage Association Charter Act 
19 
(12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Fed20 
eral Home Loan Mortgage Corporation Act (12 U.S.C. 
21 
1754(a)(2)), respectively, for any size residence for any 
22 
area is less than such maximum original principal obliga23 
tion limitation that was in effect for such size residence 
24 
for such area for 2008 pursuant to section 201 of the Eco25 
nomic Stimulus Act of 2008 (Public Law 110-185; 122 

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1 
Stat. 619), notwithstanding any other provision of law, the 
2 
limitation on the maximum original principal obligation of 
3 
a mortgage for such Association and Corporation for such 
4 
size residence for such area shall be such maximum limita5 
tion in effect for such size residence for such area for 
6 
2008. 
7 
(b) DISCRETIONARY AUTHORITY FOR SUB-AREAS.— 
8 
Notwithstanding any other provision of law, if the Direc9 
tor of the Federal Housing Finance Agency determines, 
10 
for any geographic area that is smaller than an area for 
11 
which limitations on the maximum original principal obli12 
gation of a mortgage are determined for the Federal Na13 
tional Mortgage Association or the Federal Home Loan 
14 
Mortgage Corporation, that a higher such maximum origi15 
nal principal obligation limitation is warranted for any 
16 
particular size or sizes of residences in such sub-area by 
17 
higher median home prices in such sub-area, the Director 
18 
may, for mortgages originated during 2009, increase the 
19 
maximum original principal obligation limitation for such 
20 
size or sizes of residences for such sub-area that is other21 
wise in effect (including pursuant to subsection (a) of this 
22 
section) for such Association and Corporation, but in no 
23 
case to an amount that exceeds the amount specified in 
24 
the matter following the comma in section 201(a)(1)(B) 
25 
of the Economic Stimulus Act of 2008. 

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237 

1 
SEC. 12004. FHA REVERSE MORTGAGE LOAN LIMITS FOR 
2 
2009. 
3 


For mortgages for which the mortgagee issues credit 
4 
approval for the borrower during calendar year 2009, the 
5 
second sentence of section 255(g) of the National Housing 
6 
Act (12 U.S.C. 171520(g)) shall be considered to require 
7 
that in no case may the benefits of insurance under such 
8 
section 255 exceed 150 percent of the maximum dollar 
9 
amount in effect under the sixth sentence of section 
10 
305(a)(2) of the Federal Home Loan Mortgage Corpora11 
tion Act (12 U.S.C. 1454(a)(2)). 
12 
TITLE XIII—STATE FISCAL 
13 
STABILIZATION FUND 
14 
DEPARTMENT OF EDUCATION 
15 
STATE FISCAL STABILIZATION FUND 
16 
For necessary expenses for a State Fiscal Stabiliza17 
tion Fund, $79,000,000,000, which shall be administered 
18 
by the Department of Education, of which 
19 
$39,500,000,000 shall become available on July 1, 2009 
20 
and remain available through September 30, 2010, and 
21 
$39,500,000,000 shall become available on July 1, 2010 
22 
and remain available through September 30, 2011: Pro23 
vided, That the provisions of section 1103 of this Act shall 
24 
not apply to the funds reserved under section 13001(c) 
25 
of this title: Provided further, That the amount made 
26 
available under section 13001(b) of this title for adminis


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1 
tration and oversight shall take the place of the set-aside 
2 
under section 1106 of this Act. 
3 


GENERAL PROVISIONS, THIS TITLE 

4 
SEC. 13001. ALLOCATIONS. 
5 


(a) OUTLYING AREAS.—From each year’s appropria6 
tion to carry out this title, the Secretary of Education 
7 
shall first allocate one half of 1 percent to the outlying 
8 
areas on the basis of their respective needs, as determined 
9 
by the Secretary, for activities consistent with this title 
10 
under such terms and conditions as the Secretary may de11 
termine. 
12 
(b) ADMINISTRATION AND OVERSIGHT.—The Sec13 
retary may, in addition, reserve up to $12,500,000 each 
14 
year for administration and oversight of this title, includ15 
ing for program evaluation. 
16 
(c) RESERVATION FOR ADDITIONAL PROGRAMS.— 
17 
After reserving funds under subsections (a) and (b), the 
18 
Secretary shall reserve $7,500,000,000 each year for 
19 
grants under sections 13006 and 13007. 
20 
(d) STATE ALLOCATIONS.—After carrying out sub21 
sections (a), (b), and (c), the Secretary shall allocate the 
22 
remaining funds made available to carry out this title to 
23 
the States as follows: 
24 


(1) 61 percent on the basis of their relative 

25 


population of individuals aged 5 through 24. 

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1 


(2) 39 percent on the basis of their relative 

2 


total population. 

3 


(e) STATE GRANTS.—From funds allocated under 
4 
subsection (d), the Secretary shall make grants to the 
5 
Governor of each State. 
6 
(f) REALLOCATION.—The Governor shall return to 
7 
the Secretary any funds received under subsection (e) that 
8 
the Governor does not obligate within one year of receiving 
9 
a grant, and the Secretary shall reallocate such funds to 
10 
the remaining States in accordance with subsection (d). 
11 
SEC. 13002. STATE USES OF FUNDS. 
12 
(a) EDUCATION FUND.— 
13 
(1) IN GENERAL.—For each fiscal year, the 
14 
Governor shall use at least 61 percent of the State’s 
15 
allocation under section 13001 for the support of el16 
ementary, secondary, and postsecondary education. 
17 
(2) RESTORING 2008 STATE SUPPORT FOR EDU18 
CATION.— 
19 
(A) IN GENERAL.—The Governor shall 
20 
first use the funds described in paragraph (1)— 
21 


(i) to provide the amount of funds, 

22 


through the State’s principal elementary 

23 


and secondary funding formula, that is 

24 


needed to restore State support for elemen


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240 

1 


tary and secondary education to the fiscal 

2 


year 2008 level; and 

3 


(ii) to provide the amount of funds to 

4 


public institutions of higher education in 

5 


the State that is needed to restore State 
6 
support for postsecondary education to the 
7 
fiscal year 2008 level. 
8 
(B) SHORTFALL.—If the Governor deter9 
mines that the amount of funds available under 
10 
paragraph (1) is insufficient to restore State 
11 
support for education to the levels described in 
12 
clauses (i) and (ii) of subparagraph (A), the 
13 
Governor shall allocate those funds between 
14 
those clauses in proportion to the relative short15 
fall in State support for the education sectors 
16 
described in those clauses. 
17 
(3) SUBGRANTS TO IMPROVE BASIC PROGRAMS 
18 
OPERATED BY LOCAL EDUCATIONAL AGENCIES.— 
19 
After carrying out paragraph (2), the Governor shall 
20 
use any funds remaining under paragraph (1) to 
21 


provide local educational agencies in the State with 

22 


subgrants based on their relative shares of funding 

23 


under part A of title I of the Elementary and Sec


24 


ondary Education Act of 1965 (20 U.S.C. 6311 et 

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241 

1 


seq.) for the most recent year for which data are 

2 


available. 

3 


(b) OTHER GOVERNMENT SERVICES.—For each fis4 
cal year, the Governor may use up to 39 percent of the 
5 
State’s allocation under section 1301 for public safety and 
6 
other government services, which may include assistance 
7 
for elementary and secondary education and public institu8 
tions of higher education. 
9 
SEC. 13003. USES OF FUNDS BY LOCAL EDUCATIONAL 
10 
AGENCIES. 
11 
(a) IN GENERAL.—A local educational agency that 
12 
receives funds under this title may use the funds for any 
13 
activity authorized by the Elementary and Secondary Edu14 
cation Act of 1965 (20 U.S.C. 6301 et seq.) (‘‘ESEA’’), 
15 
the Individuals with Disabilities Education Act (20 U.S.C. 
16 
1400 et seq.) (‘‘IDEA’’), or the Carl D. Perkins Career 
17 
and Technical Education Act of 2006 (20 U.S.C. 2301 
18 
et seq.) (‘‘the Perkins Act’’). 
19 
(b) PROHIBITION.—A local educational agency may 
20 
not use funds received under this title for capital projects 
21 
unless authorized by ESEA, IDEA, or the Perkins Act. 
22 
SEC. 13004. USES OF FUNDS BY INSTITUTIONS OF HIGHER 
23 


EDUCATION. 

24 


(a) IN GENERAL.—A public institution of higher edu25 
cation that receives funds under this title shall use the 

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1 
funds for education and general expenditures, and in such 
2 
a way as to mitigate the need to raise tuition and fees 
3 
for in-State students. 
4 


(b) PROHIBITION.—An institution of higher edu5 
cation may not use funds received under this title to in6 
crease its endowment. 
7 
(c) ADDITIONAL PROHIBITION.—An institution of 
8 
higher education may not use funds received under this 
9 
title for construction, renovation, or facility repair. 
10 
SEC. 13005. STATE APPLICATIONS. 
11 
(a) IN GENERAL.—The Governor of a State desiring 
12 
to receive an allocation under section 13001 shall submit 
13 
an annual application at such time, in such manner, and 
14 
containing such information as the Secretary may reason15 
ably require. 
16 
(b) FIRST YEAR APPLICATION.—In the first of such 
17 
applications, the Governor shall— 
18 
(1) include the assurances described in sub19 
section (e); 
20 
(2) provide baseline data that demonstrates the 
21 


State’s current status in each of the areas described 

22 


in such assurances; and 

23 


(3) describe how the State intends to use its al24 
location. 

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1 


(c) SECOND YEAR APPLICATION.—In the second year 
2 
application, the Governor shall— 
3 


(1) include the assurances described in sub


4 


section (e); and 

5 


(2) describe how the State intends to use its al6 
location. 
7 
(d) INCENTIVE GRANT APPLICATION.—The Governor 
8 
of a State seeking a grant under section 13006 shall— 
9 
(1) submit an application for consideration; 
10 
(2) describe the status of the State’s progress 
11 
in each of the areas described in subsection (e), and 
12 
the strategies the State is employing to help ensure 
13 
that high-need students in the State continue mak14 
ing progress towards meeting the State’s student 
15 
academic achievement standards; 
16 
(3) describe how the State would use its grant 
17 
funding, including how it will allocate the funds to 
18 
give priority to high-need schools and local edu19 
cational agencies; and 
20 
(4) include a plan for evaluating its progress in 
21 


closing achievement gaps. 

22 


(e) ASSURANCES.—An application under subsection 
23 
(b) or (c) shall include the following assurances: 
24 


(1) MAINTENANCE OF EFFORT.— 

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1 


(A) ELEMENTARY AND SECONDARY EDU


2 


CATION.—The State will, in each of fiscal years 

3 


2009 and 2010, maintain State support for ele


4 


mentary and secondary education at least at 

5 


the level of such support in fiscal year 2006. 
6 
(B) HIGHER EDUCATION.—The State will, 
7 
in each of fiscal years 2009 and 2010, maintain 
8 
State support for public institutions of higher 
9 
education (not including support for capital 
10 
projects or for research and development) at 
11 
least at the level of such support in fiscal year 
12 
2006. 
13 
(2) ACHIEVING EQUITY IN TEACHER DISTRIBU14 
TION.—The State will take actions to comply with 
15 
section 1111(b)(8)(C) of ESEA (20 U.S.C. 
16 
6311(b)(8)(C)) in order to address inequities in the 
17 
distribution of teachers between high-and low-pov18 
erty schools, and to ensure that low-income and mi19 
nority children are not taught at higher rates than 
20 
other children by inexperienced, unqualified, or out21 


of-field teachers. 

22 


(3) IMPROVING COLLECTION AND USE OF 

23 


DATA.—The State will establish a longitudinal data 

24 


system that includes the elements described in sec


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1 


tion 6401(e)(2)(D) of the America COMPETES Act 

2 


(20 U.S.C. 9871). 

3 


(4) ASSESSMENTS.—The State— 

4 


(A) will enhance the quality of academic 

5 


assessments described in section 1111(b)(3) of 
6 
ESEA (20 U.S.C. 6311(b)(3)) through activi7 
ties such as those described in section 6112(a) 
8 
of such Act (20 U.S.C. 7301a(a)); and 
9 
(B) will comply with the requirements of 
10 
paragraphs 3(C)(ix) and (6) of section 1111(b) 
11 
of ESEA (20 U.S.C. 6311(b)) and section 
12 
612(a)(16) of IDEA (20 U.S.C. 1412(a)(16)) 
13 
related to the inclusion of children with disabil14 
ities and limited English proficient students in 
15 
State assessments, the development of valid and 
16 
reliable assessments for those students, and the 
17 
provision of accommodations that enable their 
18 
participation in State assessments. 
19 
SEC. 13006. STATE INCENTIVE GRANTS. 
20 
(a) IN GENERAL.—From the total amount reserved 
21 
under section 13001(c) that is not used for section 13007, 
22 
the Secretary shall, in fiscal year 2010, make grants to 
23 
States that have made significant progress in meeting the 
24 
objectives of paragraphs (2), (3), and (4) of section 
25 
13005(e). 

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1 


(b) BASIS FOR GRANTS.—The Secretary shall deter2 
mine which States receive grants under this section, and 
3 
the amount of those grants, on the basis of information 
4 
provided in State applications under section 13005 and 
5 
such other criteria as the Secretary determines appro6 
priate. 
7 
(c) SUBGRANTS TO LOCAL EDUCATIONAL AGEN8 
CIES.—Each State receiving a grant under this section 
9 
shall use at least 50 percent of the grant to provide local 
10 
educational agencies in the State with subgrants based on 
11 
their relative shares of funding under part A of title I of 
12 
ESEA (20 U.S.C. 6311 et seq.) for the most recent year. 
13 
SEC. 13007. INNOVATION FUND. 
14 
(a) IN GENERAL.— 
15 
(1) PROGRAM ESTABLISHED.—From the total 
16 
amount reserved under section 13001(c), the Sec17 
retary may reserve up to $325,000,000 each year to 
18 
establish an Innovation Fund, which shall consist of 
19 
academic achievement awards that recognize States, 
20 
local educational agencies, or schools that meet the 
21 


requirements described in subsection (b). 
22 
(2) BASIS FOR AWARDS.—The Secretary shall 
23 


make awards to States, local educational agencies, 

24 


or schools that have made significant gains in clos


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247 

1 


ing the achievement gap as described in subsection 

2 


(b)(1)— 

3 


(A) to allow such States, local educational 

4 


agencies, and schools to expand their work and 

5 


serve as models for best practices; 
6 
(B) to allow such States, local educational 
7 
agencies, and schools to work in partnership 
8 
with the private sector and the philanthropic 
9 
community; and 
10 
(C) to identify and document best practices 
11 
that can be shared, and taken to scale based on 
12 
demonstrated success. 
13 
(b) ELIGIBILITY.—To be eligible for such an award, 
14 
a State, local educational agency, or school shall— 
15 
(1) have significantly closed the achievement 
16 
gaps between groups of students described in section 
17 
1111(b)(2) of ESEA (20 U.S.C. 6311(b)(2)); 
18 
(2) have exceeded the State’s annual measur19 
able objectives consistent with such section 
20 
1111(b)(2) for 2 or more consecutive years or have 
21 


demonstrated success in significantly increasing stu


22 


dent academic achievement for all groups of stu


23 


dents described in such section through another 

24 


measure, such as measures described in section 

25 


1111(c)(2) of ESEA; 

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248 

1 


(3) have made significant improvement in other 

2 


areas, such as graduation rates or increased recruit


3 


ment and placement of high-quality teachers and 

4 


school leaders, as demonstrated with meaningful 

5 


data; and 
6 
(4) demonstrate that they have established 
7 
partnerships with the private sector, which may in8 
clude philanthropic organizations, and that the pri9 
vate sector will provide matching funds in order to 
10 
help bring results to scale. 
11 
SEC. 13008. STATE REPORTS. 
12 
For each year of the program under this title, a State 
13 
receiving funds under this title shall submit a report to 
14 
the Secretary, at such time and in such manner as the 
15 
Secretary may require, that describes— 
16 
(1) the uses of funds provided under this title 
17 
within the State; 
18 
(2) how the State distributed the funds it re19 
ceived under this title; 
20 
(3) the number of jobs that the Governor esti21 


mates were saved or created with funds the State re


22 


ceived under this title; 

23 


(4) tax increases that the Governor estimates 

24 


were averted because of the availability of funds 

25 


from this title; 

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1 


(5) the State’s progress in reducing inequities 

2 


in the distribution of teachers, in implementing a 

3 


State student longitudinal data system, and in devel


4 


oping and implementing valid and reliable assess


5 


ments for limited English proficient students and 
6 
children with disabilities; 
7 
(6) the tuition and fee increases for in-State 
8 
students imposed by public institutions of higher 
9 
education in the State during the period of avail10 
ability of funds under this title, and a description of 
11 
any actions taken by the State to limit those in12 
creases; and 
13 
(7) the extent to which public institutions of 
14 
higher education maintained, increased, or decreased 
15 
enrollment of in-State students, including students 
16 
eligible for Pell Grants or other need-based financial 
17 
assistance. 
18 
SEC. 13009. EVALUATION. 
19 
The Comptroller General of the United States shall 
20 
conduct evaluations of the programs under sections 13006 
21 
and 13007 which shall include, but not be limited to, the 
22 
criteria used for the awards made, the States selected for 
23 
awards, award amounts, how each State used the award 
24 
received, and the impact of this funding on the progress 
25 
made toward closing achievement gaps. 

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250 

1 
SEC. 13010. SECRETARY’S REPORT TO CONGRESS. 
2 


The Secretary shall submit a report to the Committee 
3 
on Education and Labor of the House of Representatives, 
4 
the Committee on Health, Education, Labor, and Pen5 
sions of the Senate, and the Committees on Appropria6 
tions of the House of Representatives and of the Senate, 
7 
not less than 6 months following the submission of State 
8 
reports, that evaluates the information provided in the 
9 
State reports under section 13008. 
10 
SEC. 13011. PROHIBITION ON PROVISION OF CERTAIN AS11 
SISTANCE. 
12 
No recipient of funds under this title shall use such 
13 
funds to provide financial assistance to students to attend 
14 
private elementary or secondary schools. 
15 
SEC. 13012. DEFINITIONS. 
16 
Except as otherwise provided in this title, as used in 
17 
this title— 
18 
(1) the term ‘‘institution of higher education’’ 
19 
has the meaning given such term in section 101 of 
20 
the Higher Education Act of 1965 (20 U.S.C. 
21 
1001); 
22 


(2) the term ‘‘Secretary’’ means the Secretary 

23 


of Education; 

24 


(3) the term ‘‘State’’ means each of the 50 

25 


States, the District of Columbia, and the Common


26 


wealth of Puerto Rico; and 

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251 

1 


(4) any other term used in this title that is de


2 


fined in section 9101 of ESEA (20 U.S.C. 7801) 

3 


shall have the meaning given the term in that sec4 
tion. 
5 


DIVISION B—OTHER 
6 
PROVISIONS 
7 
TITLE I—TAX PROVISIONS 
8 
SEC. 1000. SHORT TITLE, ETC. 
9 
(a) SHORT TITLE.—This title may be cited as the 
10 
‘‘American Recovery and Reinvestment Tax Act of 2009’’. 
11 
(b) REFERENCE.—Except as otherwise expressly pro12 
vided, whenever in this title an amendment or repeal is 
13 
expressed in terms of an amendment to, or repeal of, a 
14 
section or other provision, the reference shall be consid15 
ered to be made to a section or other provision of the In16 
ternal Revenue Code of 1986. 
17 
(c) TABLE OF CONTENTS.—The table of contents for 
18 
this title is as follows: 

Sec. 1000. Short title, etc. 

Subtitle A—Making Work Pay 

Sec. 1001. Making work pay credit. 

Subtitle B—Additional Tax Relief for Families With Children 

Sec. 1101. Increase in earned income tax credit. 
Sec. 1102. Increase of refundable portion of child credit. 


Subtitle C—American Opportunity Tax Credit 

Sec. 1201. American opportunity tax credit. 

Subtitle D—Housing Incentives 

Sec. 1301. Waiver of requirement to repay first-time homebuyer credit. 

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252 

Sec. 1302. Coordination of low-income housing credit and low-income housing 
grants. 
Subtitle E—Tax Incentives for Business 

PART 1—TEMPORARY INVESTMENT INCENTIVES 
Sec. 1401. Special allowance for certain property acquired during 2009. 
Sec. 1402. Temporary increase in limitations on expensing of certain depre


ciable business assets. 
PART 2—5-YEAR CARRYBACK OF OPERATING LOSSES 
Sec. 1411. 5-year carryback of operating losses. 
Sec. 1412. Exception for TARP recipients. 
PART 3—INCENTIVES FOR NEW JOBS 
Sec. 1421. Incentives to hire unemployed veterans and disconnected youth. 
PART 4—CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON 
CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE 
Sec. 1431. Clarification of regulations related to limitations on certain built-in 
losses following an ownership change. 
Subtitle F—Fiscal Relief for State and Local Governments 
PART 1—IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS 
Sec. 1501. De minimis safe harbor exception for tax-exempt interest expense of 
financial institutions. 
Sec. 1502. Modification of small issuer exception to tax-exempt interest expense 
allocation rules for financial institutions. 

Sec. 1503. Temporary modification of alternative minimum tax limitations on 
tax-exempt bonds. 
PART 2—TAX CREDIT BONDS FOR SCHOOLS 

Sec. 1511. Qualified school construction bonds. 
Sec. 1512. Extension and expansion of qualified zone academy bonds. 
PART 3—TAXABLE BOND OPTION FOR GOVERNMENTAL BONDS 
Sec. 1521. Taxable bond option for governmental bonds. 

PART 4—RECOVERY ZONE BONDS 
Sec. 1531. Recovery zone bonds. 
Sec. 1532. Tribal economic development bonds. 

PART 5—REPEAL OF WITHHOLDING TAX ON GOVERNMENT CONTRACTORS 
Sec. 1541. Repeal of withholding tax on government contractors. 
Subtitle G—Energy Incentives 
PART 1—RENEWABLE ENERGY INCENTIVES 

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253 

Sec. 1601. Extension of credit for electricity produced from certain renewable 
resources. 

Sec. 1602. Election of investment credit in lieu of production credit. 

Sec. 1603. Repeal of certain limitations on credit for renewable energy property. 


Sec. 1604. Coordination with renewable energy grants. 

PART 2—INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY 
BONDS AND QUALIFIED ENERGY CONSERVATION BONDS 


Sec. 1611. Increased limitation on issuance of new clean renewable energy 
bonds. 

Sec. 1612. Increased limitation and expansion of qualified energy conservation 
bonds. 

PART 3—ENERGY CONSERVATION INCENTIVES 

Sec. 1621. Extension and modification of credit for nonbusiness energy property. 


Sec. 1622. Modification of credit for residential energy efficient property. 

Sec. 1623. Temporary increase in credit for alternative fuel vehicle refueling 
property. 

PART 4—ENERGY RESEARCH INCENTIVES 

Sec. 1631. Increased research credit for energy research. 

Subtitle H—Other Provisions 

PART 1—APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS 
FINANCED WITH CERTAIN TAX-FAVORED BONDS 


Sec. 1701. Application of certain labor standards to projects financed with certain 
tax-favored bonds. 

PART 2—GRANTS TO PROVIDE FINANCING FOR LOW-INCOME HOUSING 

Sec. 1711. Grants to States for low-income housing projects in lieu of low-income 
housing credit allocations for 2009. 

PART 3—GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX 
CREDITS 


Sec. 1721. Grants for specified energy property in lieu of tax credits. 

PART 4—STUDY OF ECONOMIC, EMPLOYMENT, AND RELATED EFFECTS OF 
THIS ACT 


Sec. 1731. Study of economic, employment, and related effects of this Act. 

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1 


Subtitle A—Making Work Pay 

2 
SEC. 1001. MAKING WORK PAY CREDIT. 
3 


(a) IN GENERAL.—Subpart C of part IV of sub4 
chapter A of chapter 1 is amended by inserting after sec5 
tion 36 the following new section: 
6 
‘‘SEC. 36A. MAKING WORK PAY CREDIT. 
7 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli8 
gible individual, there shall be allowed as a credit against 
9 
the tax imposed by this subtitle for the taxable year an 
10 
amount equal to the lesser of— 
11 
‘‘(1) 6.2 percent of earned income of the tax12 
payer, or 
13 
‘‘(2) $500 ($1,000 in the case of a joint re14 
turn). 
15 
‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED 
16 
GROSS INCOME.— 
17 
‘‘(1) IN GENERAL.—The amount allowable as a 
18 
credit under subsection (a) (determined without re19 
gard to this paragraph) for the taxable year shall be 
20 
reduced (but not below zero) by 2 percent of so 
21 


much of the taxpayer’s modified adjusted gross in


22 


come as exceeds $75,000 ($150,000 in the case of 

23 


a joint return). 

24 


‘‘(2) MODIFIED ADJUSTED GROSS INCOME.— 

25 


For purposes of subparagraph (A), the term ‘modi


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255 

1 


fied adjusted gross income’ means the adjusted 

2 


gross income of the taxpayer for the taxable year in


3 


creased by any amount excluded from gross income 

4 


under section 911, 931, or 933. 

5 


‘‘(c) DEFINITIONS.—For purposes of this section— 
6 
‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
7 
individual’ means any individual other than— 
8 
‘‘(A) any nonresident alien individual, 
9 
‘‘(B) any individual with respect to whom 
10 
a deduction under section 151 is allowable to 
11 
another taxpayer for a taxable year beginning 
12 
in the calendar year in which the individual’s 
13 
taxable year begins, and 
14 
‘‘(C) an estate or trust. 
15 
Such term shall not include any individual unless the 
16 
requirements of section 32(c)(1)(E) are met with re17 
spect to such individual. 
18 
‘‘(2) EARNED INCOME.—The term ‘earned in19 
come’ has the meaning given such term by section 
20 
32(c)(2), except that such term shall not include net 
21 


earnings from self-employment which are not taken 

22 


into account in computing taxable income. For pur


23 


poses of the preceding sentence, any amount ex


24 


cluded from gross income by reason of section 112 

25 


shall be treated as earned income which is taken 

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256 

1 


into account in computing taxable income for the 

2 


taxable year. 

3 


‘‘(d) TERMINATION.—This section shall not apply to 
4 
taxable years beginning after December 31, 2010.’’. 
5 


(b) TREATMENT OF POSSESSIONS.— 
6 
(1) PAYMENTS TO POSSESSIONS.— 
7 
(A) MIRROR CODE POSSESSION.—The Sec8 
retary of the Treasury shall pay to each posses9 
sion of the United States with a mirror code 
10 
tax system amounts equal to the loss to that 
11 
possession by reason of the amendments made 
12 
by this section with respect to taxable years be13 
ginning in 2009 and 2010. Such amounts shall 
14 
be determined by the Secretary of the Treasury 
15 
based on information provided by the govern16 
ment of the respective possession. 
17 
(B) OTHER POSSESSIONS.—The Secretary 
18 
of the Treasury shall pay to each possession of 
19 
the United States which does not have a mirror 
20 
code tax system amounts estimated by the Sec21 


retary of the Treasury as being equal to the ag


22 


gregate benefits that would have been provided 

23 


to residents of such possession by reason of the 

24 


amendments made by this section for taxable 

25 


years beginning in 2009 and 2010 if a mirror 

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257 

1 


code tax system had been in effect in such pos


2 


session. The preceding sentence shall not apply 

3 


with respect to any possession of the United 

4 


States unless such possession has a plan, which 

5 


has been approved by the Secretary of the 
6 
Treasury, under which such possession will 
7 
promptly distribute such payments to the resi8 
dents of such possession. 
9 
(2) COORDINATION WITH CREDIT ALLOWED 
10 
AGAINST UNITED STATES INCOME TAXES.—No cred11 
it shall be allowed against United States income 
12 
taxes for any taxable year under section 36A of the 
13 
Internal Revenue Code of 1986 (as added by this 
14 
section) to any person— 
15 
(A) to whom a credit is allowed against 
16 
taxes imposed by the possession by reason of 
17 
the amendments made by this section for such 
18 
taxable year, or 
19 
(B) who is eligible for a payment under a 
20 
plan described in paragraph (1)(B) with respect 
21 


to such taxable year. 

22 


(3) DEFINITIONS AND SPECIAL RULES.— 
23 
(A) POSSESSION OF THE UNITED 
24 


STATES.—For purposes of this subsection, the 

25 


term ‘‘possession of the United States’’ includes 

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258 


1 


the Commonwealth of Puerto Rico and the 

2 


Commonwealth of the Northern Mariana Is


3 


lands. 

4 


(B) MIRROR CODE TAX SYSTEM.—For pur


5 


poses of this subsection, the term ‘‘mirror code 
6 
tax system’’ means, with respect to any posses7 
sion of the United States, the income tax sys8 
tem of such possession if the income tax liabil9 
ity of the residents of such possession under 
10 
such system is determined by reference to the 
11 
income tax laws of the United States as if such 
12 
possession were the United States. 
13 
(C) TREATMENT OF PAYMENTS.—For pur14 
poses of section 1324(b)(2) of title 31, United 
15 
States Code, the payments under this sub16 
section shall be treated in the same manner as 
17 
a refund due from the credit allowed under sec18 
tion 36A of the Internal Revenue Code of 1986 
19 
(as added by this section). 
20 
(c) REFUNDS DISREGARDED IN THE ADMINISTRA21 
TION OF FEDERAL PROGRAMS AND FEDERALLY AS22 
SISTED PROGRAMS.—Any credit or refund allowed or 
23 
made to any individual by reason of section 36A of the 
24 
Internal Revenue Code of 1986 (as added by this section) 
25 
or by reason of subsection (b) of this section shall not be 

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259 
1 
taken into account as income and shall not be taken into 
2 
account as resources for the month of receipt and the fol3 
lowing 2 months, for purposes of determining the eligi4 
bility of such individual or any other individual for benefits 
5 
or assistance, or the amount or extent of benefits or assist6 
ance, under any Federal program or under any State or 
7 
local program financed in whole or in part with Federal 
8 
funds. 
9 
(d) CONFORMING AMENDMENTS.— 
10 
(1) Section 6211(b)(4)(A) is amended by insert11 
ing ‘‘36A,’’ after ‘‘36,’’. 
12 
(2) Section 1324(b)(2) of title 31, United 
13 
States Code, is amended by inserting ‘‘36A,’’ after 
14 
‘‘36,’’. 
15 
(3) The table of sections for subpart C of part 
16 
IV of subchapter A of chapter 1 is amended by in17 
serting after the item relating to section 36 the fol18 
lowing new item: 

‘‘Sec. 36A. Making work pay credit.’’. 

19 
(e) EFFECTIVE DATE.—This section shall apply to 
20 
taxable years beginning after December 31, 2008. 

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260 

1 


Subtitle B—Additional Tax Relief 

2 


for Families With Children 

3 
SEC. 1101. INCREASE IN EARNED INCOME TAX CREDIT. 
4 


(a) IN GENERAL.—Subsection (b) of section 32 is 
5 
amended by adding at the end the following new para6 
graph: 
7 
‘‘(3) SPECIAL RULES FOR 2009 AND 2010.—In 
8 
the case of any taxable year beginning in 2009 or 
9 
2010— 
10 
‘‘(A) INCREASED CREDIT PERCENTAGE 
11 
FOR 3 OR MORE QUALIFYING CHILDREN.—In 
12 
the case of a taxpayer with 3 or more qualifying 
13 
children, the credit percentage is 45 percent. 
14 
‘‘(B) REDUCTION OF MARRIAGE PEN15 
ALTY.— 
16 
‘‘(i) IN GENERAL.—The dollar amount 
17 
in effect under paragraph (2)(B) shall be 
18 
$5,000. 
19 
‘‘(ii) INFLATION ADJUSTMENT.—In 
20 
the case of any taxable year beginning in 
21 


2010, the $5,000 amount in clause (i) 

22 


shall be increased by an amount equal to— 

23 


‘‘(I) such dollar amount, multi24 
plied by 

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261 

1 


‘‘(II) the cost of living adjust


2 


ment determined under section 1(f)(3) 

3 


for the calendar year in which the tax


4 


able year begins determined by sub


5 


stituting ‘calendar year 2008’ for ‘cal6 
endar year 1992’ in subparagraph (B) 
7 
thereof. 
8 
‘‘(iii) ROUNDING.—Subparagraph (A) 
9 
of subsection (j)(2) shall apply after taking 
10 
into account any increase under clause 
11 
(ii).’’. 
12 
(b) EFFECTIVE DATE.—The amendments made by 
13 
this section shall apply to taxable years beginning after 
14 
December 31, 2008. 
15 
SEC. 1102. INCREASE OF REFUNDABLE PORTION OF CHILD 
16 
CREDIT. 
17 
(a) IN GENERAL.—Paragraph (4) of section 24(d) is 
18 
amended to read as follows: 
19 
‘‘(4) SPECIAL RULE FOR 2009 AND 2010.—Not20 
withstanding paragraph (3), in the case of any tax21 


able year beginning in 2009 or 2010, the dollar 

22 


amount in effect for such taxable year under para


23 


graph (1)(B)(i) shall be zero.’’. 

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262 

1 


(b) EFFECTIVE DATE.—The amendments made by 
2 
this section shall apply to taxable years beginning after 
3 
December 31, 2008. 
4 


Subtitle C—American Opportunity 

5 


Tax Credit 

6 
SEC. 1201. AMERICAN OPPORTUNITY TAX CREDIT. 
7 
(a) IN GENERAL.—Section 25A (relating to Hope 
8 
scholarship credit) is amended by redesignating subsection 
9 
(i) as subsection (j) and by inserting after subsection (h) 
10 
the following new subsection: 
11 
‘‘(i) AMERICAN OPPORTUNITY TAX CREDIT.—In the 
12 
case of any taxable year beginning in 2009 or 2010— 
13 
‘‘(1) INCREASE IN CREDIT.—The Hope Scholar14 
ship Credit shall be an amount equal to the sum 
15 
of— 
16 
‘‘(A) 100 percent of so much of the quali17 
fied tuition and related expenses paid by the 
18 
taxpayer during the taxable year (for education 
19 
furnished to the eligible student during any 
20 
academic period beginning in such taxable year) 
21 


as does not exceed $2,000, plus 

22 


‘‘(B) 25 percent of such expenses so paid 

23 


as exceeds $2,000 but does not exceed $4,000. 

24 


‘‘(2) CREDIT ALLOWED FOR FIRST 4 YEARS OF 

25 


POST-SECONDARY EDUCATION.—Subparagraphs (A) 

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263 

1 


and (C) of subsection (b)(2) shall be applied by sub


2 


stituting ‘4’ for ‘2’. 
3 
‘‘(3) QUALIFIED TUITION AND RELATED EX4 


PENSES TO INCLUDE REQUIRED COURSE MATE


5 


RIALS.—Subsection (f)(1)(A) shall be applied by 
6 
substituting ‘tuition, fees, and course materials’ for 
7 
‘tuition and fees’. 
8 
‘‘(4) INCREASE IN AGI LIMITS FOR HOPE 
9 
SCHOLARSHIP CREDIT.—In lieu of applying sub10 
section (d) with respect to the Hope Scholarship 
11 
Credit, such credit (determined without regard to 
12 
this paragraph) shall be reduced (but not below 
13 
zero) by the amount which bears the same ratio to 
14 
such credit (as so determined) as— 
15 
‘‘(A) the excess of— 
16 
‘‘(i) the taxpayer’s modified adjusted 
17 
gross income (as defined in subsection 
18 
(d)(3)) for such taxable year, over 
19 
‘‘(ii) $80,000 ($160,000 in the case of 
20 
a joint return), bears to 
21 


‘‘(B) $10,000 ($20,000 in the case of a 

22 


joint return). 

23 


‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE 

24 


MINIMUM TAX.—In the case of a taxable year to 

25 


which section 26(a)(2) does not apply, so much of 

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264 

1 


the credit allowed under subsection (a) as is attrib


2 


utable to the Hope Scholarship Credit shall not ex


3 


ceed the excess of— 

4 


‘‘(A) the sum of the regular tax liability 

5 


(as defined in section 26(b)) plus the tax im6 
posed by section 55, over 
7 
‘‘(B) the sum of the credits allowable 
8 
under this subpart (other than this subsection 
9 
and sections 23, 25D, and 30D) and section 27 
10 
for the taxable year. 
11 
Any reference in this section or section 24, 25, 26, 
12 
25B, 904, or 1400C to a credit allowable under this 
13 
subsection shall be treated as a reference to so much 
14 
of the credit allowable under subsection (a) as is at15 
tributable to the Hope Scholarship Credit. 
16 
‘‘(6) PORTION OF CREDIT MADE REFUND17 
ABLE.—40 percent of so much of the credit allowed 
18 
under subsection (a) as is attributable to the Hope 
19 
Scholarship Credit (determined after application of 
20 
paragraph (4) and without regard to this paragraph 
21 


and section 26(a)(2) or paragraph (5), as the case 

22 


may be) shall be treated as a credit allowable under 

23 


subpart C (and not allowed under subsection (a)). 

24 


The preceding sentence shall not apply to any tax


25 


payer for any taxable year if such taxpayer is a child 

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265 

1 


to whom subsection (g) of section 1 applies for such 

2 


taxable year. 

3 


‘‘(7) COORDINATION WITH MIDWESTERN DIS


4 


ASTER AREA BENEFITS.—In the case of a taxpayer 

5 


with respect to whom section 702(a)(1)(B) of the 
6 
Heartland Disaster Tax Relief Act of 2008 applies 
7 
for any taxable year, such taxpayer may elect to 
8 
waive the application of this subsection to such tax9 
payer for such taxable year.’’. 
10 
(b) CONFORMING AMENDMENTS.— 
11 
(1) Section 24(b)(3)(B) is amended by inserting 
12 
‘‘25A(i),’’ after ‘‘23,’’. 
13 
(2) Section 25(e)(1)(C)(ii) is amended by in14 
serting ‘‘25A(i),’’ after ‘‘24,’’. 
15 
(3) Section 26(a)(1) is amended by inserting 
16 
‘‘25A(i),’’ after ‘‘24,’’. 
17 
(4) Section 25B(g)(2) is amended by inserting 
18 
‘‘25A(i),’’ after ‘‘23,’’. 
19 
(5) Section 904(i) is amended by inserting 
20 
‘‘25A(i),’’ after ‘‘24,’’. 
21 


(6) Section 1400C(d)(2) is amended by insert


22 


ing ‘‘25A(i),’’ after ‘‘24,’’. 

23 


(7) Section 1324(b)(2) of title 31, United 

24 


States Code, is amended by inserting ‘‘25A,’’ before 
25 
‘‘35’’. 

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266 

1 


(c) EFFECTIVE DATE.—The amendments made by 
2 
this section shall apply to taxable years beginning after 
3 
December 31, 2008. 
4 
(d) APPLICATION OF EGTRRA SUNSET.—The 
5 
amendment made by subsection (b)(1) shall be subject to 
6 
title IX of the Economic Growth and Tax Relief Reconcili7 
ation Act of 2001 in the same manner as the provision 
8 
of such Act to which such amendment relates. 
9 
(e) TREASURY STUDIES REGARDING EDUCATION IN10 
CENTIVES.— 
11 
(1) STUDY REGARDING COORDINATION WITH 
12 
NON-TAX EDUCATIONAL INCENTIVES.—The Sec13 
retary of the Treasury, or the Secretary’s delegate, 
14 
shall study how to coordinate the credit allowed 
15 
under section 25A of the Internal Revenue Code of 
16 
1986 with the Federal Pell Grant program under 
17 
section 401 of the Higher Education Act of 1965. 
18 
(2) STUDY REGARDING IMPOSITION OF COMMU19 
NITY SERVICE REQUIREMENTS.—The Secretary of 
20 
the Treasury, or the Secretary’s delegate, shall study 
21 


the feasibility of requiring students to perform com


22 


munity service as a condition of taking their tuition 

23 


and related expenses into account under section 25A 

24 


of the Internal Revenue Code of 1986. 

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267 

1 


(3) REPORT.—Not later than 1 year after the 

2 


date of the enactment of this Act, the Secretary of 

3 


the Treasury, or the Secretary’s delegate, shall re


4 


port to Congress on the results of the studies con


5 


ducted under this paragraph. 

6 
Subtitle D—Housing Incentives 

7 
SEC. 1301. WAIVER OF REQUIREMENT TO REPAY FIRST


8 
TIME HOMEBUYER CREDIT. 

9 
(a) IN GENERAL.—Paragraph (4) of section 36(f) is 
10 
amended by adding at the end the following new subpara11 
graph: 
12 
‘‘(D) WAIVER OF RECAPTURE FOR PUR13 
CHASES IN 2009.—In the case of any credit al14 
lowed with respect to the purchase of a prin15 
cipal residence after December 31, 2008, and 
16 
before July 1, 2009— 
17 
‘‘(i) paragraph (1) shall not apply, 
18 
and 
19 
‘‘(ii) paragraph (2) shall apply only if 
20 
the disposition or cessation described in 
21 


paragraph (2) with respect to such resi


22 


dence occurs during the 36-month period 

23 


beginning on the date of the purchase of 

24 


such residence by the taxpayer.’’. 

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268 

1 


(b) CONFORMING AMENDMENT.—Subsection (g) of 
2 
section 36 is amended by striking ‘‘subsection (c)’’ and 
3 
inserting ‘‘subsections (c) and (f)(4)(D)’’. 
4 


(c) EFFECTIVE DATE.—The amendments made by 
5 
this section shall apply to residences purchased after De6 
cember 31, 2008. 
7 
SEC. 1302. COORDINATION OF LOW-INCOME HOUSING 
8 
CREDIT AND LOW-INCOME HOUSING GRANTS. 
9 
Subsection (i) of section 42 of the Internal Revenue 
10 
Code of 1986 is amended by adding at the end the fol11 
lowing new paragraph: 
12 
‘‘(9) COORDINATION WITH LOW-INCOME HOUS13 
ING GRANTS.— 
14 
‘‘(A) REDUCTION IN STATE HOUSING 
15 
CREDIT CEILING FOR LOW-INCOME HOUSING 
16 
GRANTS RECEIVED IN 2009.—For purposes of 
17 
this section, the amounts described in clauses 
18 
(i) through (iv) of subsection (h)(3)(C) with re19 
spect to any State for 2009 shall each be re20 
duced by so much of such amount as is taken 
21 


into account in determining the amount of any 

22 


grant to such State under section 1711 of the 

23 


American Recovery and Reinvestment Tax Act 
24 
of 2009. 

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269 

1 


‘‘(B) SPECIAL RULE FOR BASIS.—Basis of 

2 


a qualified low-income building shall not be re


3 


duced by the amount of any grant described in 

4 


subparagraph (A).’’. 

5 


Subtitle E—Tax Incentives for 
6 
Business 
7 
PART 1—TEMPORARY INVESTMENT INCENTIVES 
8 
SEC. 1401. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY 
9 
ACQUIRED DURING 2009. 
10 
(a) IN GENERAL.—Paragraph (2) of section 168(k) 
11 
is amended— 
12 
(1) by striking ‘‘January 1, 2010’’ and insert13 
ing ‘‘January 1, 2011’’, and 
14 
(2) by striking ‘‘January 1, 2009’’ each place 
15 
it appears and inserting ‘‘January 1, 2010’’. 
16 
(b) CONFORMING AMENDMENTS.— 
17 
(1) The heading for subsection (k) of section 
18 
168 is amended by striking ‘‘JANUARY 1, 2009’’ and 
19 
inserting ‘‘JANUARY 1, 2010’’. 
20 
(2) The heading for clause (ii) of section 
21 


168(k)(2)(B) is amended by striking ‘‘PRE-JANUARY 

22 


1, 2009’’ and inserting ‘‘PRE-JANUARY 1, 2010’’. 

23 


(3) Subparagraph (D) of section 168(k)(4) is 

24 


amended— 

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270 

1 


(A) by striking ‘‘and’’ at the end of clause 
2 
(i), 
3 


(B) by redesignating clause (ii) as clause 

4 


(v), and 

5 


(C) by inserting after clause (i) the fol6 
lowing new clauses: 
7 
‘‘(ii) ‘April 1, 2008’ shall be sub8 
stituted for ‘January 1, 2008’ in subpara9 
graph (A)(iii)(I) thereof, 
10 
‘‘(iii) ‘January 1, 2009’ shall be sub11 
stituted for ‘January 1, 2010’ each place it 
12 
appears, 
13 
‘‘(iv) ‘January 1, 2010’ shall be sub14 
stituted for ‘January 1, 2011’ in subpara15 
graph (A)(iv) thereof, and’’. 
16 
(4) Subparagraph (B) of section 168(l)(5) is 
17 
amended by striking ‘‘January 1, 2009’’ and insert18 
ing ‘‘January 1, 2010’’. 
19 
(5) Subparagraph (B) of section 1400N(d)(3) 
20 
is amended by striking ‘‘January 1, 2009’’ and in21 


serting ‘‘January 1, 2010’’. 

22 


(c) EFFECTIVE DATES.— 

23 


(1) IN GENERAL.—Except as provided in para


24 


graph (2), the amendments made by this section 

25 


shall apply to property placed in service after De


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271 

1 


cember 31, 2008, in taxable years ending after such 
2 
date. 
3 
(2) TECHNICAL AMENDMENT.—Section 
4 


168(k)(4)(D)(ii) of the Internal Revenue Code of 

5 


1986, as added by subsection (b)(3)(C), shall apply 
6 
to taxable years ending after March 31, 2008. 
7 
SEC. 1402. TEMPORARY INCREASE IN LIMITATIONS ON EX8 
PENSING OF CERTAIN DEPRECIABLE BUSI9 
NESS ASSETS. 
10 
(a) IN GENERAL.—Paragraph (7) of section 179(b) 
11 
is amended— 
12 
(1) by striking ‘‘2008’’ and inserting ‘‘2008, or 
13 
2009’’, and 
14 
(2) by striking ‘‘2008’’ in the heading thereof 
15 
and inserting ‘‘2008, AND 2009’’. 
16 
(b) EFFECTIVE DATE.—The amendments made by 
17 
this section shall apply to taxable years beginning after 
18 
December 31, 2008. 
19 
PART 2—5-YEAR CARRYBACK OF OPERATING 
20 
LOSSES 
21 
SEC. 1411. 5-YEAR CARRYBACK OF OPERATING LOSSES. 
22 


(a) IN GENERAL.—Subparagraph (H) of section 
23 
172(b)(1) is amended to read as follows: 
24 


‘‘(H) CARRYBACK FOR 2008 AND 2009 NET 

25 


OPERATING LOSSES.— 

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272 

1 


‘‘(i) IN GENERAL.—In the case of an 

2 


applicable 2008 or 2009 net operating loss 

3 


with respect to which the taxpayer has 

4 


elected the application of this subpara


5 


graph— 
6 
‘‘(I) such net operating loss shall 
7 
be reduced by 10 percent of such loss 
8 
(determined without regard to this 
9 
subparagraph), 
10 
‘‘(II) subparagraph (A)(i) shall 
11 
be applied by substituting any whole 
12 
number elected by the taxpayer which 
13 
is more than 2 and less than 6 for ‘2’, 
14 
‘‘(III) subparagraph (E)(ii) shall 
15 
be applied by substituting the whole 
16 
number which is one less than the 
17 
whole number substituted under sub18 
clause (II) for ‘2’, and 
19 
‘‘(IV) subparagraph (F) shall not 
20 
apply. 
21 


‘‘(ii) APPLICABLE 2008 OR 2009 NET 

22 


OPERATING LOSS.—For purposes of this 

23 


subparagraph, the term ‘applicable 2008 

24 


or 2009 net operating loss’ means— 

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273 

1 


‘‘(I) the taxpayer’s net operating 

2 


loss for any taxable year ending in 

3 


2008 or 2009, or 

4 


‘‘(II) if the taxpayer elects to 

5 


have this subclause apply in lieu of 
6 
subclause (I), the taxpayer’s net oper7 
ating loss for any taxable year begin8 
ning in 2008 or 2009. 
9 
‘‘(iii) ELECTION.—Any election under 
10 
this subparagraph shall be made in such 
11 
manner as may be prescribed by the Sec12 
retary, and shall be made by the due date 
13 
(including extension of time) for filing the 
14 
taxpayer’s return for the taxable year of 
15 
the net operating loss. Any such election, 
16 
once made, shall be irrevocable. 
17 
‘‘(iv) COORDINATION WITH ALTER18 
NATIVE TAX NET OPERATING LOSS DEDUC19 
TION.—In the case of a taxpayer who 
20 
elects to have clause (ii)(II) apply, section 
21 


56(d)(1)(A)(ii) shall be applied by sub


22 


stituting ‘ending during 2001 or 2002 or 

23 


beginning during 2008 or 2009’ for ‘end


24 


ing during 2001, 2002, 2008, or 2009’.’’. 

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274 

1 


(b) ALTERNATIVE TAX NET OPERATING LOSS DE2 
DUCTION.—Subclause (I) of section 56(d)(1)(A)(ii) is 
3 
amended to read as follows: 
4 


‘‘(I) the amount of such deduc


5 


tion attributable to the sum of 
6 
carrybacks of net operating losses 
7 
from taxable years ending during 
8 
2001, 2002, 2008, or 2009 and 
9 
carryovers of net operating losses to 
10 
such taxable years, or’’. 
11 
(c) LOSS FROM OPERATIONS OF LIFE INSURANCE 
12 
COMPANIES.—Subsection (b) of section 810 is amended 
13 
by adding at the end the following new paragraph: 
14 
‘‘(4) CARRYBACK FOR 2008 AND 2009 LOSSES.— 
15 
‘‘(A) IN GENERAL.—In the case of an ap16 
plicable 2008 or 2009 loss from operations with 
17 
respect to which the taxpayer has elected the 
18 
application of this paragraph— 
19 
‘‘(i) such loss from operations shall be 
20 
reduced by 10 percent of such loss (deter21 


mined without regard to this paragraph), 
22 
and 
23 


‘‘(ii) paragraph (1)(A) shall be ap


24 


plied, at the election of the taxpayer, by 

25 


substituting ‘5’ or ‘4’ for ‘3’. 

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275 

1 


‘‘(B) APPLICABLE 2008 OR 2009 LOSS FROM 

2 


OPERATIONS.—For purposes of this paragraph, 

3 


the term ‘applicable 2008 or 2009 loss from op


4 


erations’ means— 

5 


‘‘(i) the taxpayer’s loss from oper6 
ations for any taxable year ending in 2008 
7 
or 2009, or 
8 
‘‘(ii) if the taxpayer elects to have this 
9 
clause apply in lieu of clause (i), the tax10 
payer’s loss from operations for any tax11 
able year beginning in 2008 or 2009. 
12 
‘‘(C) ELECTION.—Any election under this 
13 
paragraph shall be made in such manner as 
14 
may be prescribed by the Secretary, and shall 
15 
be made by the due date (including extension of 
16 
time) for filing the taxpayer’s return for the 
17 
taxable year of the loss from operations. Any 
18 
such election, once made, shall be irrevocable. 
19 
‘‘(D) COORDINATION WITH ALTERNATIVE 
20 
TAX NET OPERATING LOSS DEDUCTION.—In the 
21 


case of a taxpayer who elects to have subpara


22 


graph (B)(ii) apply, section 56(d)(1)(A)(ii) shall 

23 


be applied by substituting ‘ending during 2001 

24 


or 2002 or beginning during 2008 or 2009’ for 

25 


‘ending during 2001, 2002, 2008, or 2009’.’’. 

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276 

1 


(d) CONFORMING AMENDMENT.—Section 172 is 
2 
amended by striking subsection (k). 
3 


(e) EFFECTIVE DATE.— 

4 


(1) IN GENERAL.—Except as otherwise pro


5 


vided in this subsection, the amendments made by 
6 
this section shall apply to net operating losses aris7 
ing in taxable years ending after December 31, 
8 
2007. 
9 
(2) ALTERNATIVE TAX NET OPERATING LOSS 
10 
DEDUCTION.—The amendment made by subsection 
11 
(b) shall apply to taxable years ending after 1997. 
12 
(3) LOSS FROM OPERATIONS OF LIFE INSUR13 
ANCE COMPANIES.—The amendment made by sub14 
section (d) shall apply to losses from operations aris15 
ing in taxable years ending after December 31, 
16 
2007. 
17 
(4) TRANSITIONAL RULE.—In the case of a net 
18 
operating loss (or, in the case of a life insurance 
19 
company, a loss from operations) for a taxable year 
20 
ending before the date of the enactment of this 
21 
Act— 
22 


(A) any election made under section 

23 


172(b)(3) or 810(b)(3) of the Internal Revenue 

24 


Code of 1986 with respect to such loss may 

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277 


1 


(notwithstanding such section) be revoked be


2 


fore the applicable date, 

3 


(B) any election made under section 

4 


172(b)(1)(H) or 810(b)(4) of such Code with 

5 


respect to such loss shall (notwithstanding such 
6 
section) be treated as timely made if made be7 
fore the applicable date, and 
8 
(C) any application under section 6411(a) 
9 
of such Code with respect to such loss shall be 
10 
treated as timely filed if filed before the appli11 
cable date. 
12 
For purposes of this paragraph, the term ‘‘applica13 
ble date’’ means the date which is 60 days after the 
14 
date of the enactment of this Act. 
15 
SEC. 1412. EXCEPTION FOR TARP RECIPIENTS. 
16 
The amendments made by this part shall not apply 
17 
to— 
18 
(1) any taxpayer if— 
19 
(A) the Federal Government acquires, at 
20 
any time, an equity interest in the taxpayer 
21 


pursuant to the Emergency Economic Stabiliza


22 


tion Act of 2008, or 

23 


(B) the Federal Government acquires, at 

24 


any time, any warrant (or other right) to ac


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278 

1 


quire any equity interest with respect to the 

2 


taxpayer pursuant to such Act, 

3 


(2) the Federal National Mortgage Association 

4 


and the Federal Home Loan Mortgage Corporation, 
5 
and 
6 
(3) any taxpayer which at any time in 2008 or 
7 
2009 is a member of the same affiliated group (as 
8 
defined in section 1504 of the Internal Revenue 
9 
Code of 1986, determined without regard to sub10 
section (b) thereof) as a taxpayer described in para11 
graph (1) or (2). 
12 
PART 3—INCENTIVES FOR NEW JOBS 
13 
SEC. 1421. INCENTIVES TO HIRE UNEMPLOYED VETERANS 
14 
AND DISCONNECTED YOUTH. 
15 
(a) IN GENERAL.—Subsection (d) of section 51 is 
16 
amended by adding at the end the following new para17 
graph: 
18 
‘‘(14) CREDIT ALLOWED FOR UNEMPLOYED 
19 
VETERANS AND DISCONNECTED YOUTH HIRED IN 
20 
2009 OR 2010.— 
21 


‘‘(A) IN GENERAL.—Any unemployed vet


22 


eran or disconnected youth who begins work for 

23 


the employer during 2009 or 2010 shall be 

24 


treated as a member of a targeted group for 

25 


purposes of this subpart. 

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279 

1 


‘‘(B) DEFINITIONS.—For purposes of this 

2 


paragraph— 
3 
‘‘(i) UNEMPLOYED VETERAN.—The 
4 


term ‘unemployed veteran’ means any vet


5 


eran (as defined in paragraph (3)(B), de6 
termined without regard to clause (ii) 
7 
thereof) who is certified by the designated 
8 
local agency as— 
9 
‘‘(I) having been discharged or 
10 
released from active duty in the 
11 
Armed Forces during 2008, 2009, or 
12 
2010, and 
13 
‘‘(II) being in receipt of unem14 
ployment compensation under State or 
15 
Federal law for not less than 4 weeks 
16 
during the 1-year period ending on 
17 
the hiring date. 
18 
‘‘(ii) DISCONNECTED YOUTH.—The 
19 
term ‘disconnected youth’ means any indi20 
vidual who is certified by the designated 
21 


local agency— 

22 


‘‘(I) as having attained age 16 

23 


but not age 25 on the hiring date, 

24 


‘‘(II) as not regularly attending 

25 


any secondary, technical, or post-sec


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280 

1 


ondary school during the 6-month pe


2 


riod preceding the hiring date, 

3 


‘‘(III) as not regularly employed 

4 


during such 6-month period, and 

5 


‘‘(IV) as not readily employable 
6 
by reason of lacking a sufficient num7 
ber of basic skills.’’. 
8 
(b) EFFECTIVE DATE.—The amendments made by 
9 
this section shall apply to individuals who begin work for 
10 
the employer after December 31, 2008. 
11 
PART 4—CLARIFICATION OF REGULATIONS RE12 
LATED TO LIMITATIONS ON CERTAIN BUILT13 
IN LOSSES FOLLOWING AN OWNERSHIP 
14 
CHANGE 
15 
SEC. 1431. CLARIFICATION OF REGULATIONS RELATED TO 
16 
LIMITATIONS ON CERTAIN BUILT-IN LOSSES 
17 
FOLLOWING AN OWNERSHIP CHANGE. 
18 
(a) FINDINGS.—Congress finds as follows: 
19 
(1) The delegation of authority to the Secretary 
20 
of the Treasury under section 382(m) of the Inter21 


nal Revenue Code of 1986 does not authorize the 

22 


Secretary to provide exemptions or special rules that 

23 


are restricted to particular industries or classes of 

24 


taxpayers. 

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281 

1 


(2) Internal Revenue Service Notice 2008–83 is 

2 


inconsistent with the congressional intent in enact


3 


ing such section 382(m). 

4 


(3) The legal authority to prescribe Internal 

5 


Revenue Service Notice 2008–83 is doubtful. 
6 
(4) However, as taxpayers should generally be 
7 
able to rely on guidance issued by the Secretary of 
8 
the Treasury legislation is necessary to clarify the 
9 
force and effect of Internal Revenue Service Notice 
10 
2008–83 and restore the proper application under 
11 
the Internal Revenue Code of 1986 of the limitation 
12 
on built-in losses following an ownership change of 
13 
a bank. 
14 
(b) DETERMINATION OF FORCE AND EFFECT OF IN15 
TERNAL REVENUE SERVICE NOTICE 2008–83 EXEMPT16 
ING BANKS FROM LIMITATION ON CERTAIN BUILT–IN 
17 
LOSSES FOLLOWING OWNERSHIP CHANGE.— 
18 
(1) IN GENERAL.—Internal Revenue Service 
19 
Notice 2008–83— 
20 
(A) shall be deemed to have the force and 
21 


effect of law with respect to any ownership 

22 


change (as defined in section 382(g) of the In


23 


ternal Revenue Code of 1986) occurring on or 

24 


before January 16, 2009, and 

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1 


(B) shall have no force or effect with re


2 


spect to any ownership change after such date. 
3 
(2) BINDING CONTRACTS.—Notwithstanding 
4 


paragraph (1), Internal Revenue Service Notice 

5 


2008–83 shall have the force and effect of law with 
6 
respect to any ownership change (as so defined) 
7 
which occurs after January 16, 2009 if such 
8 
change— 
9 
(A) is pursuant to a written binding con10 
tract entered into on or before such date, or 
11 
(B) is pursuant to a written agreement en12 
tered into on or before such date and such 
13 
agreement was described on or before such date 
14 
in a public announcement or in a filing with the 
15 
Securities and Exchange Commission required 
16 
by reason of such ownership change. 

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1 


Subtitle F—Fiscal Relief for State 

2 


and Local Governments 

3 


PART 1—IMPROVED MARKETABILITY FOR TAX


4 


EXEMPT BONDS 
5 
SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX6 
EXEMPT INTEREST EXPENSE OF FINANCIAL 
7 
INSTITUTIONS. 
8 
(a) IN GENERAL.—Subsection (b) of section 265 is 
9 
amended by adding at the end the following new para10 
graph: 
11 
‘‘(7) DE MINIMIS EXCEPTION FOR BONDS 
12 
ISSUED DURING 2009 OR 2010.— 
13 
‘‘(A) IN GENERAL.—In applying paragraph 
14 
(2)(A), there shall not be taken into account 
15 
tax-exempt obligations issued during 2009 or 
16 
2010. 
17 
‘‘(B) LIMITATION.—The amount of tax-ex18 
empt obligations not taken into account by rea19 
son of subparagraph (A) shall not exceed 2 per20 
cent of the amount determined under para21 


graph (2)(B). 

22 


‘‘(C) REFUNDINGS.—For purposes of this 

23 


paragraph, a refunding bond (whether a current 

24 


or advance refunding) shall be treated as issued 

25 


on the date of the issuance of the refunded 

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1 


bond (or in the case of a series of refundings, 

2 


the original bond).’’. 

3 


(b) TREATMENT AS FINANCIAL INSTITUTION PREF4 
ERENCE ITEM.—Clause (iv) of section 291(e)(1)(B) is 
5 
amended by adding at the end the following: ‘‘That por6 
tion of any obligation not taken into account under para7 
graph (2)(A) of section 265(b) by reason of paragraph (7) 
8 
of such section shall be treated for purposes of this section 
9 
as having been acquired on August 7, 1986.’’. 
10 
(c) EFFECTIVE DATE.—The amendments made by 
11 
this section shall apply to obligations issued after Decem12 
ber 31, 2008. 
13 
SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION 
14 
TO TAX-EXEMPT INTEREST EXPENSE ALLOCA15 
TION RULES FOR FINANCIAL INSTITUTIONS. 
16 
(a) IN GENERAL.—Paragraph (3) of section 265(b) 
17 
(relating to exception for certain tax-exempt obligations) 
18 
is amended by adding at the end the following new sub19 
paragraph: 
20 
‘‘(G) SPECIAL RULES FOR OBLIGATIONS 
21 


ISSUED DURING 2009 AND 2010.— 
22 
‘‘(i) INCREASE IN LIMITATION.—In 
23 


the case of obligations issued during 2009 

24 


or 2010, subparagraphs (C)(i), (D)(i), and 

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1 


(D)(iii)(II) shall each be applied by sub


2 


stituting ‘$30,000,000’ for ‘$10,000,000’. 

3 


‘‘(ii) QUALIFIED 501(C)(3) BONDS 

4 


TREATED AS ISSUED BY EXEMPT ORGANI


5 


ZATION.—In the case of a qualified 
6 
501(c)(3) bond (as defined in section 145) 
7 
issued during 2009 or 2010, this para8 
graph shall be applied by treating the 
9 
501(c)(3) organization for whose benefit 
10 
such bond was issued as the issuer. 
11 
‘‘(iii) SPECIAL RULE FOR QUALIFIED 
12 
FINANCINGS.—In the case of a qualified fi13 
nancing issue issued during 2009 or 
14 
2010— 
15 
‘‘(I) subparagraph (F) shall not 
16 
apply, and 
17 
‘‘(II) any obligation issued as a 
18 
part of such issue shall be treated as 
19 
a qualified tax-exempt obligation if 
20 
the requirements of this paragraph 
21 


are met with respect to each qualified 

22 


portion of the issue (determined by 

23 


treating each qualified portion as a 

24 


separate issue issued by the qualified 

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1 


borrower with respect to which such 

2 


portion relates). 

3 


‘‘(iv) QUALIFIED FINANCING ISSUE.— 

4 


For purposes of this subparagraph, the 

5 


term ‘qualified financing issue’ means any 
6 
composite, pooled, or other conduit financ7 
ing issue the proceeds of which are used 
8 
directly or indirectly to make or finance 
9 
loans to one or more ultimate borrowers 
10 
each of whom is a qualified borrower. 
11 
‘‘(v) QUALIFIED PORTION.—For pur12 
poses of this subparagraph, the term 
13 
‘qualified portion’ means that portion of 
14 
the proceeds which are used with respect 
15 
to each qualified borrower under the issue. 
16 
‘‘(vi) QUALIFIED BORROWER.—For 
17 
purposes of this subparagraph, the term 
18 
‘qualified borrower’ means a borrower 
19 
which is a State or political subdivision 
20 
thereof or an organization described in sec21 


tion 501(c)(3) and exempt from taxation 

22 


under section 501(a).’’. 

23 


(b) EFFECTIVE DATE.—The amendments made by 
24 
this section shall apply to obligations issued after Decem25 
ber 31, 2008. 

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1 
SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE 
2 


MINIMUM TAX LIMITATIONS ON TAX-EXEMPT 

3 


BONDS. 

4 


(a) INTEREST ON PRIVATE ACTIVITY BONDS ISSUED 
5 
DURING 2009 AND 2010 NOT TREATED AS TAX PREF6 
ERENCE ITEM.—Subparagraph (C) of section 57(a)(5) is 
7 
amended by adding at the end a new clause: 
8 
‘‘(vi) EXCEPTION FOR BONDS ISSUED 
9 
IN 2009 AND 2010.—For purposes of clause 
10 
(i), the term ‘private activity bond’ shall 
11 
not include any bond issued after Decem12 
ber 31, 2008, and before January 1, 2011. 
13 
For purposes of the preceding sentence, a 
14 
refunding bond (whether a current or ad15 
vance refunding) shall be treated as issued 
16 
on the date of the issuance of the refunded 
17 
bond (or in the case of a series of 
18 
refundings, the original bond).’’. 
19 
(b) NO ADJUSTMENT TO ADJUSTED CURRENT 
20 
EARNINGS FOR INTEREST ON TAX-EXEMPT BONDS 
21 
ISSUED AFTER 2008.—Subparagraph (B) of section 
22 
56(g)(4) is amended by adding at the end the following 
23 
new clause: 
24 
‘‘(iv) TAX EXEMPT INTEREST ON 
25 


BONDS ISSUED IN 2009 AND 2010.—Clause 

26 


(i) shall not apply in the case of any inter-

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1 


est on a bond issued after December 31, 

2 


2008, and before January 1, 2011. For 

3 


purposes of the preceding sentence, a re


4 


funding bond (whether a current or ad


5 


vance refunding) shall be treated as issued 
6 
on the date of the issuance of the refunded 
7 
bond (or in the case of a series of 
8 
refundings, the original bond).’’. 
9 
(c) EFFECTIVE DATE.—The amendments made by 
10 
this section shall apply to obligations issued after Decem11 
ber 31, 2008. 
12 
PART 2—TAX CREDIT BONDS FOR SCHOOLS 
13 
SEC. 1511. QUALIFIED SCHOOL CONSTRUCTION BONDS. 
14 
(a) IN GENERAL.—Subpart I of part IV of sub15 
chapter A of chapter 1 is amended by adding at the end 
16 
the following new section: 
17 
‘‘SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS. 
18 
‘‘(a) QUALIFIED SCHOOL CONSTRUCTION BOND.— 
19 
For purposes of this subchapter, the term ‘qualified school 
20 
construction bond’ means any bond issued as part of an 
21 
issue if— 
22 


‘‘(1) 100 percent of the available project pro


23 


ceeds of such issue are to be used for the construc


24 


tion, rehabilitation, or repair of a public school facil


25 


ity or for the acquisition of land on which such a fa-

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1 


cility is to be constructed with part of the proceeds 

2 


of such issue, 

3 


‘‘(2) the bond is issued by a State or local gov


4 


ernment within the jurisdiction of which such school 

5 


is located, and 
6 
‘‘(3) the issuer designates such bond for pur7 
poses of this section. 
8 
‘‘(b) LIMITATION ON AMOUNT OF BONDS DES9 
IGNATED.—The maximum aggregate face amount of 
10 
bonds issued during any calendar year which may be des11 
ignated under subsection (a) by any issuer shall not exceed 
12 
the sum of— 
13 
‘‘(1) the limitation amount allocated under sub14 
section (d) for such calendar year to such issuer, 
15 
and 
16 
‘‘(2) if such issuer is a large local educational 
17 
agency (as defined in subsection (e)(4)) or is issuing 
18 
on behalf of such an agency, the limitation amount 
19 
allocated under subsection (e) for such calendar year 
20 
to such agency. 
21 


‘‘(c) NATIONAL LIMITATION ON AMOUNT OF BONDS 
22 
DESIGNATED.—There is a national qualified school con23 
struction bond limitation for each calendar year. Such lim24 
itation is— 
25 


‘‘(1) $11,000,000,000 for 2009, 

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1 


‘‘(2) $11,000,000,000 for 2010, and 

2 


‘‘(3) except as provided in subsection (f), zero 

3 


after 2010. 

4 


‘‘(d) 60 PERCENT OF LIMITATION ALLOCATED 
5 
AMONG STATES.— 
6 
‘‘(1) IN GENERAL.—60 percent of the limitation 
7 
applicable under subsection (c) for any calendar year 
8 
shall be allocated by the Secretary among the States 
9 
in proportion to the respective numbers of children 
10 
in each State who have attained age 5 but not age 
11 
18 for the most recent fiscal year ending before such 
12 
calendar year. The limitation amount allocated to a 
13 
State under the preceding sentence shall be allocated 
14 
by the State to issuers within such State. 
15 
‘‘(2) MINIMUM ALLOCATIONS TO STATES.— 
16 
‘‘(A) IN GENERAL.—The Secretary shall 
17 
adjust the allocations under this subsection for 
18 
any calendar year for each State to the extent 
19 
necessary to ensure that the sum of— 
20 
‘‘(i) the amount allocated to such 
21 


State under this subsection for such year, 
22 
and 
23 


‘‘(ii) the aggregate amounts allocated 

24 


under subsection (e) to large local edu


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291 

1 


cational agencies in such State for such 
2 
year, 
3 


is not less than an amount equal to such 

4 


State’s adjusted minimum percentage of the 

5 


amount to be allocated under paragraph (1) for 
6 
the calendar year. 
7 
‘‘(B) ADJUSTED MINIMUM PERCENTAGE.— 
8 
A State’s adjusted minimum percentage for any 
9 
calendar year is the product of— 
10 
‘‘(i) the minimum percentage de11 
scribed in section 1124(d) of the Elemen12 
tary and Secondary Education Act of 1965 
13 
(20 U.S.C. 6334(d)) for such State for the 
14 
most recent fiscal year ending before such 
15 
calendar year, multiplied by 
16 
‘‘(ii) 1.68. 
17 
‘‘(3) ALLOCATIONS TO CERTAIN POSSES18 
SIONS.—The amount to be allocated under para19 
graph (1) to any possession of the United States 
20 
other than Puerto Rico shall be the amount which 
21 


would have been allocated if all allocations under 

22 


paragraph (1) were made on the basis of respective 

23 


populations of individuals below the poverty line (as 

24 


defined by the Office of Management and Budget). 

25 


In making other allocations, the amount to be allo


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292 

1 


cated under paragraph (1) shall be reduced by the 

2 


aggregate amount allocated under this paragraph to 

3 


possessions of the United States. 

4 


‘‘(4) ALLOCATIONS FOR INDIAN SCHOOLS.—In 

5 


addition to the amounts otherwise allocated under 
6 
this subsection, $200,000,000 for calendar year 
7 
2009, and $200,000,000 for calendar year 2010, 
8 
shall be allocated by the Secretary of the Interior for 
9 
purposes of the construction, rehabilitation, and re10 
pair of schools funded by the Bureau of Indian Af11 
fairs. In the case of amounts allocated under the 
12 
preceding sentence, Indian tribal governments (as 
13 
defined in section 7701(a)(40)) shall be treated as 
14 
qualified issuers for purposes of this subchapter. 
15 
‘‘(e) 40 PERCENT OF LIMITATION ALLOCATED 
16 
AMONG LARGEST SCHOOL DISTRICTS.— 
17 
‘‘(1) IN GENERAL.—40 percent of the limitation 
18 
applicable under subsection (c) for any calendar year 
19 
shall be allocated under paragraph (2) by the Sec20 
retary among local educational agencies which are 
21 


large local educational agencies for such year. 

22 


‘‘(2) ALLOCATION FORMULA.—The amount to 

23 


be allocated under paragraph (1) for any calendar 

24 


year shall be allocated among large local educational 

25 


agencies in proportion to the respective amounts 

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1 


each such agency received for Basic Grants under 

2 


subpart 2 of part A of title I of the Elementary and 

3 


Secondary Education Act of 1965 (20 U.S.C. 6331 

4 


et seq.) for the most recent fiscal year ending before 

5 


such calendar year. 
6 
‘‘(3) ALLOCATION OF UNUSED LIMITATION TO 
7 
STATE.—The amount allocated under this subsection 
8 
to a large local educational agency for any calendar 
9 
year may be reallocated by such agency to the State 
10 
in which such agency is located for such calendar 
11 
year. Any amount reallocated to a State under the 
12 
preceding sentence may be allocated as provided in 
13 
subsection (d)(1). 
14 
‘‘(4) LARGE LOCAL EDUCATIONAL AGENCY.— 
15 
For purposes of this section, the term ‘large local 
16 
educational agency’ means, with respect to a cal17 
endar year, any local educational agency if such 
18 
agency is— 
19 
‘‘(A) among the 100 local educational 
20 
agencies with the largest numbers of children 
21 


aged 5 through 17 from families living below 

22 


the poverty level, as determined by the Sec


23 


retary using the most recent data available 

24 


from the Department of Commerce that are 

25 


satisfactory to the Secretary, or 

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1 


‘‘(B) 1 of not more than 25 local edu


2 


cational agencies (other than those described in 

3 


subparagraph (A)) that the Secretary of Edu


4 


cation determines (based on the most recent 

5 


data available satisfactory to the Secretary) are 
6 
in particular need of assistance, based on a low 
7 
level of resources for school construction, a high 
8 
level of enrollment growth, or such other factors 
9 
as the Secretary deems appropriate. 
10 
‘‘(f) CARRYOVER OF UNUSED LIMITATION.—If for 
11 
any calendar year— 
12 
‘‘(1) the amount allocated under subsection (d) 
13 
to any State, exceeds 
14 
‘‘(2) the amount of bonds issued during such 
15 
year which are designated under subsection (a) pur16 
suant to such allocation, 
17 
the limitation amount under such subsection for such 
18 
State for the following calendar year shall be increased 
19 
by the amount of such excess. A similar rule shall apply 
20 
to the amounts allocated under subsection (d)(4) or (e).’’. 
21 


(b) CONFORMING AMENDMENTS.— 

22 


(1) Paragraph (1) of section 54A(d) is amended 

23 


by striking ‘‘or’’ at the end of subparagraph (C), by 

24 


inserting ‘‘or’’ at the end of subparagraph (D), and 

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295 

1 


by inserting after subparagraph (D) the following 

2 


new subparagraph: 
3 
‘‘(E) a qualified school construction 
4 


bond,’’. 

5 


(2) Subparagraph (C) of section 54A(d)(2) is 
6 
amended by striking ‘‘and’’ at the end of clause (iii), 
7 
by striking the period at the end of clause (iv) and 
8 
inserting ‘‘, and’’, and by adding at the end the fol9 
lowing new clause: 
10 
‘‘(v) in the case of a qualified school 
11 
construction bond, a purpose specified in 
12 
section 54F(a)(1).’’. 
13 
(3) The table of sections for subpart I of part 
14 
IV of subchapter A of chapter 1 is amended by add15 
ing at the end the following new item: 

‘‘Sec. 54F. Qualified school construction bonds.’’. 
16 
(c) EFFECTIVE DATE.—The amendments made by 
17 
this section shall apply to obligations issued after Decem18 
ber 31, 2008. 
19 
SEC. 1512. EXTENSION AND EXPANSION OF QUALIFIED 
20 


ZONE ACADEMY BONDS. 

21 


(a) IN GENERAL.—Section 54E(c)(1) is amended by 
22 
striking ‘‘and 2009’’ and inserting ‘‘and $1,400,000,000 
23 
for 2009 and 2010’’. 

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1 


(b) EFFECTIVE DATE.—The amendment made by 
2 
this section shall apply to obligations issued after Decem3 
ber 31, 2008. 
4 


PART 3—TAXABLE BOND OPTION FOR 

5 


GOVERNMENTAL BONDS 
6 
SEC. 1521. TAXABLE BOND OPTION FOR GOVERNMENTAL 
7 
BONDS. 
8 
(a) IN GENERAL.—Part IV of subchapter A of chap9 
ter 1 is amended by adding at the end the following new 
10 
subpart: 
11 
‘‘Subpart J—Taxable Bond Option for Governmental 
12 
Bonds 

‘‘Sec. 54AA. Taxable bond option for governmental bonds. 

13 
‘‘SEC. 54AA. TAXABLE BOND OPTION FOR GOVERNMENTAL 
14 
BONDS. 
15 
‘‘(a) IN GENERAL.—If a taxpayer holds a taxable 
16 
governmental bond on one or more interest payment dates 
17 
of the bond during any taxable year, there shall be allowed 
18 
as a credit against the tax imposed by this chapter for 
19 
the taxable year an amount equal to the sum of the credits 
20 
determined under subsection (b) with respect to such 
21 
dates. 
22 


‘‘(b) AMOUNT OF CREDIT.—The amount of the credit 
23 
determined under this subsection with respect to any in24 
terest payment date for a taxable governmental bond is 

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297 
1 
35 percent of the amount of interest payable by the issuer 
2 
with respect to such date. 
3 


‘‘(c) LIMITATION BASED ON AMOUNT OF TAX.— 

4 


‘‘(1) IN GENERAL.—The credit allowed under 

5 


subsection (a) for any taxable year shall not exceed 
6 
the excess of— 
7 
‘‘(A) the sum of the regular tax liability 
8 
(as defined in section 26(b)) plus the tax im9 
posed by section 55, over 
10 
‘‘(B) the sum of the credits allowable 
11 
under this part (other than subpart C and this 
12 
subpart). 
13 
‘‘(2) CARRYOVER OF UNUSED CREDIT.—If the 
14 
credit allowable under subsection (a) exceeds the 
15 
limitation imposed by paragraph (1) for such taxable 
16 
year, such excess shall be carried to the succeeding 
17 
taxable year and added to the credit allowable under 
18 
subsection (a) for such taxable year (determined be19 
fore the application of paragraph (1) for such suc20 
ceeding taxable year). 
21 


‘‘(d) TAXABLE GOVERNMENTAL BOND.— 

22 


‘‘(1) IN GENERAL.—For purposes of this sec


23 


tion, the term ‘taxable governmental bond’ means 

24 


any obligation (other than a private activity bond) 
25 
if— 

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298 

1 


‘‘(A) the interest on such obligation would 

2 


(but for this section) be excludable from gross 

3 


income under section 103, and 

4 


‘‘(B) the issuer makes an irrevocable elec


5 


tion to have this section apply. 
6 
‘‘(2) APPLICABLE RULES.—For purposes of ap7 
plying paragraph (1)— 
8 
‘‘(A) a taxable governmental bond shall not 
9 
be treated as federally guaranteed by reason of 
10 
the credit allowed under subsection (a) or sec11 
tion 6432, 
12 
‘‘(B) the yield on a taxable governmental 
13 
bond shall be determined without regard to the 
14 
credit allowed under subsection (a), and 
15 
‘‘(C) a bond shall not be treated as a tax16 
able governmental bond if the issue price has 
17 
more than a de minimis amount (determined 
18 
under rules similar to the rules of section 
19 
1273(a)(3)) of premium over the stated prin20 
cipal amount of the bond. 
21 


‘‘(e) INTEREST PAYMENT DATE.—For purposes of 
22 
this section, the term ‘interest payment date’ means any 
23 
date on which the holder of record of the taxable govern24 
mental bond is entitled to a payment of interest under 
25 
such bond. 

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299 

1 


‘‘(f) SPECIAL RULES.— 

2 


‘‘(1) INTEREST ON TAXABLE GOVERNMENTAL 
3 
BONDS INCLUDIBLE IN GROSS INCOME FOR FED4 


ERAL INCOME TAX PURPOSES.—For purposes of this 

5 


title, interest on any taxable governmental bond 
6 
shall be includible in gross income. 
7 
‘‘(2) APPLICATION OF CERTAIN RULES.—Rules 
8 
similar to the rules of subsections (f), (g), (h), and 
9 
(i) of section 54A shall apply for purposes of the 
10 
credit allowed under subsection (a). 
11 
‘‘(g) SPECIAL RULE FOR QUALIFIED BONDS ISSUED 
12 
BEFORE 2011.—In the case of a qualified bond issued be13 
fore January 1, 2011— 
14 
‘‘(1) ISSUER ALLOWED REFUNDABLE CRED15 
IT.—In lieu of any credit allowed under this section 
16 
with respect to such bond, the issuer of such bond 
17 
shall be allowed a credit as provided in section 6432. 
18 
‘‘(2) QUALIFIED BOND.—For purposes of this 
19 
subsection, the term ‘qualified bond’ means any tax20 
able governmental bond issued as part of an issue 
21 
if— 
22 


‘‘(A) 100 percent of the available project 

23 


proceeds (as defined in section 54A) of such 

24 


issue are to be used for capital expenditures, 
25 
and 

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300 

1 


‘‘(B) the issuer makes an irrevocable elec


2 


tion to have this subsection apply. 

3 


‘‘(h) REGULATIONS.—The Secretary may prescribe 
4 
such regulations and other guidance as may be necessary 
5 
or appropriate to carry out this section and section 
6 
6432.’’. 
7 
(b) CREDIT FOR QUALIFIED BONDS ISSUED BEFORE 
8 
2011.—Subchapter B of chapter 65, as amended by this 
9 
Act, is amended by adding at the end the following new 
10 
section: 
11 
‘‘SEC. 6432. CREDIT FOR QUALIFIED BONDS ALLOWED TO 
12 
ISSUER. 
13 
‘‘(a) IN GENERAL.—In the case of a qualified bond 
14 
issued before January 1, 2011, the issuer of such bond 
15 
shall be allowed a credit with respect to each interest pay16 
ment under such bond which shall be payable by the Sec17 
retary as provided in subsection (b). 
18 
‘‘(b) PAYMENT OF CREDIT.—The Secretary shall pay 
19 
(contemporaneously with each interest payment date 
20 
under such bond) to the issuer of such bond (or to any 
21 
person who makes such interest payments on behalf of the 
22 
issuer) 35 percent of the interest payable under such bond 
23 
on such date. 

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301 

1 


‘‘(c) APPLICATION OF ARBITRAGE RULES.—For pur2 
poses of section 148, the yield on a qualified bond shall 
3 
be reduced by the credit allowed under this section. 
4 


‘‘(d) INTEREST PAYMENT DATE.—For purposes of 
5 
this subsection, the term ‘interest payment date’ means 
6 
each date on which interest is payable by the issuer under 
7 
the terms of the bond. 
8 
‘‘(e) QUALIFIED BOND.—For purposes of this sub9 
section, the term ‘qualified bond’ has the meaning given 
10 
such term in section 54AA(h).’’. 
11 
(c) CONFORMING AMENDMENTS.— 
12 
(1) Section 1324(b)(2) of title 31, United 
13 
States Code, is amended by striking ‘‘or 6428’’ and 
14 
inserting ‘‘6428, or 6432,’’. 
15 
(2) Section 54A(c)(1)(B) is amended by strik16 
ing ‘‘subpart C’’ and inserting ‘‘subparts C and J’’. 
17 
(3) Sections 54(c)(2), 1397E(c)(2), and 
18 
1400N(l)(3)(B) are each amended by striking ‘‘and 
19 
I’’ and inserting ‘‘, I, and J’’. 
20 
(4) Section 6401(b)(1) is amended by striking 
21 


‘‘and I’’ and inserting ‘‘I, and J’’. 

22 


(5) The table of subparts for part IV of sub


23 


chapter A of chapter 1 is amended by adding at the 

24 


end the following new item: 

‘‘Subpart J. Taxable bond option for governmental bonds.’’. 

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302 

1 


(6) The table of sections for subchapter B of 

2 


chapter 65, as amended by this Act, is amended by 

3 


adding at the end the following new item: 

‘‘Sec. 6432. Credit for qualified bonds allowed to issuer on advance basis.’’. 

4 


(d) TRANSITIONAL COORDINATION WITH STATE 
5 
LAW.—Except as otherwise provided by a State after the 
6 
date of the enactment of this Act, the interest on any tax7 
able governmental bond (as defined in section 54AA of 
8 
the Internal Revenue Code of 1986, as added by this sec9 
tion) and the amount of any credit determined under such 
10 
section with respect to such bond shall be treated for pur11 
poses of the income tax laws of such State as being exempt 
12 
from Federal income tax. 
13 
(e) EFFECTIVE DATE.—The amendments made by 
14 
this section shall apply to obligations issued after the date 
15 
of the enactment of this Act. 
16 
PART 4—RECOVERY ZONE BONDS 
17 
SEC. 1531. RECOVERY ZONE BONDS. 
18 
(a) IN GENERAL.—Subchapter Y of chapter 1 is 
19 
amended by adding at the end the following new part: 
20 


‘‘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. 


21 
‘‘SEC. 1400U–1. ALLOCATION OF RECOVERY ZONE BONDS. 
22 


‘‘(a) ALLOCATIONS.— 

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303 


1 


‘‘(1) IN GENERAL.—The Secretary shall allo


2 


cate the national recovery zone economic develop


3 


ment bond limitation and the national recovery zone 

4 


facility bond limitation among the States in the pro


5 


portion that each such State’s 2008 State employ6 
ment decline bears to the aggregate of the 2008 
7 
State employment declines for all of the States. 
8 
‘‘(2) 2008 STATE EMPLOYMENT DECLINE.—For 
9 
purposes of this subsection, the term ‘2008 State 
10 
employment decline’ means, with respect to any 
11 
State, the excess (if any) of— 
12 
‘‘(A) the number of individuals employed 
13 
in such State determined for December 2007, 
14 
over 
15 
‘‘(B) the number of individuals employed 
16 
in such State determined for December 2008. 
17 
‘‘(3) ALLOCATIONS BY STATES.— 
18 
‘‘(A) IN GENERAL.—Each State with re19 
spect to which an allocation is made under 
20 
paragraph (1) shall reallocate such allocation 
21 


among the counties and large municipalities in 

22 


such State in the proportion the each such 

23 


county’s or municipality’s 2008 employment de


24 


cline bears to the aggregate of the 2008 em-

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304 

1 


ployment declines for all the counties and mu


2 


nicipalities in such State. 

3 


‘‘(B) LARGE MUNICIPALITIES.—For pur


4 


poses of subparagraph (A), the term ‘large mu


5 


nicipality’ means a municipality with a popu6 
lation of more than 100,000. 
7 
‘‘(C) DETERMINATION OF LOCAL EMPLOY8 
MENT DECLINES.—For purposes of this para9 
graph, the employment decline of any munici10 
pality or county shall be determined in the 
11 
same manner as determining the State employ12 
ment decline under paragraph (2), except that 
13 
in the case of a municipality any portion of 
14 
which is in a county, such portion shall be 
15 
treated as part of such municipality and not 
16 
part of such county. 
17 
‘‘(4) NATIONAL LIMITATIONS.— 
18 
‘‘(A) RECOVERY ZONE ECONOMIC DEVEL19 
OPMENT BONDS.—There is a national recovery 
20 
zone economic development bond limitation of 
21 


$10,000,000,000. 

22 


‘‘(B) RECOVERY ZONE FACILITY BONDS.— 

23 


There is a national recovery zone facility bond 

24 


limitation of $15,000,000,000. 

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305 

1 


‘‘(b) RECOVERY ZONE.—For purposes of this part, 
2 
the term ‘recovery zone’ means— 
3 


‘‘(1) any area designated by the issuer as hav


4 


ing significant poverty, unemployment, home fore


5 


closures, or general distress, and 
6 
‘‘(2) any area for which a designation as an em7 
powerment zone or renewal community is in effect. 
8 
‘‘SEC. 1400U–2. RECOVERY ZONE ECONOMIC DEVELOPMENT 
9 
BONDS. 
10 
‘‘(a) IN GENERAL.—In the case of a recovery zone 
11 
economic development bond— 
12 
‘‘(1) such bond shall be treated as a qualified 
13 
bond for purposes of section 6432, and 
14 
‘‘(2) subsection (b) of such section shall be ap15 
plied by substituting ‘55 percent’ for ‘35 percent’. 
16 
‘‘(b) RECOVERY ZONE ECONOMIC DEVELOPMENT 
17 
BOND.— 
18 
‘‘(1) IN GENERAL.—For purposes of this sec19 
tion, the term ‘recovery zone economic development 
20 
bond’ means any taxable governmental bond (as de21 


fined in section 54AA(d)) issued before January 1, 

22 


2011, as part of issue if— 

23 


‘‘(A) 100 percent of the available project 

24 


proceeds (as defined in section 54A) of such 

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306 

1 


issue are to be used for one or more qualified 

2 


economic development purposes, and 

3 


‘‘(B) the issuer designates such bond for 

4 


purposes of this section. 

5 


‘‘(2) LIMITATION ON AMOUNT OF BONDS DES6 
IGNATED.—The maximum aggregate face amount of 
7 
bonds which may be designated by any issuer under 
8 
paragraph (1) shall not exceed the amount of the re9 
covery zone economic development bond limitation 
10 
allocated to such issuer under section 1400U–1. 
11 
‘‘(c) QUALIFIED ECONOMIC DEVELOPMENT PUR12 
POSE.—For purposes of this section, the term ‘qualified 
13 
economic development purpose’ means expenditures for 
14 
purposes of promoting development or other economic ac15 
tivity in a recovery zone, including— 
16 
‘‘(1) capital expenditures paid or incurred with 
17 
respect to property located in such zone, 
18 
‘‘(2) expenditures for public infrastructure and 
19 
construction of public facilities, and 
20 
‘‘(3) expenditures for job training and edu21 


cational programs. 

22 
‘‘SEC. 1400U–3. RECOVERY ZONE FACILITY BONDS. 
23 


‘‘(a) IN GENERAL.—For purposes of part IV of sub24 
chapter B (relating to tax exemption requirements for 

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307 
1 
State and local bonds), the term ‘exempt facility bond’ in2 
cludes any recovery zone facility bond. 
3 


‘‘(b) RECOVERY ZONE FACILITY BOND.— 

4 


‘‘(1) IN GENERAL.—For purposes of this sec


5 


tion, the term ‘recovery zone facility bond’ means 
6 
any bond issued as part of an issue if— 
7 
‘‘(A) 95 percent or more of the net pro8 
ceeds (as defined in section 150(a)(3)) of such 
9 
issue are to be used for recovery zone property, 
10 
‘‘(B) such bond is issued before January 1, 
11 
2011, and 
12 
‘‘(C) the issuer designates such bond for 
13 
purposes of this section. 
14 
‘‘(2) LIMITATION ON AMOUNT OF BONDS DES15 
IGNATED.—The maximum aggregate face amount of 
16 
bonds which may be designated by any issuer under 
17 
paragraph (1) shall not exceed the amount of recov18 
ery zone facility bond limitation allocated to such 
19 
issuer under section 1400U–1. 
20 
‘‘(c) RECOVERY ZONE PROPERTY.—For purposes of 
21 
this section— 
22 


‘‘(1) IN GENERAL.—The term ‘recovery zone 

23 


property’ means any property to which section 168 

24 


applies (or would apply but for section 179) if— 

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308 

1 


‘‘(A) such property was acquired by the 

2 


taxpayer by purchase (as defined in section 

3 


179(d)(2)) after the date on which the designa


4 


tion of the recovery zone took effect, 

5 


‘‘(B) the original use of which in the recov6 
ery zone commences with the taxpayer, and 
7 
‘‘(C) substantially all of the use of which 
8 
is in the recovery zone and is in the active con9 
duct of a qualified business by the taxpayer in 
10 
such zone. 
11 
‘‘(2) QUALIFIED BUSINESS.—The term ‘quali12 
fied business’ means any trade or business except 
13 
that— 
14 
‘‘(A) the rental to others of real property 
15 
located in a recovery zone shall be treated as a 
16 
qualified business only if the property is not 
17 
residential rental property (as defined in section 
18 
168(e)(2)), and 
19 
‘‘(B) such term shall not include any trade 
20 
or business consisting of the operation of any 
21 


facility described in section 144(c)(6)(B). 
22 
‘‘(3) SPECIAL RULES FOR SUBSTANTIAL REN23 


OVATIONS AND SALE-LEASEBACK.—Rules similar to 

24 


the rules of subsections (a)(2) and (b) of section 

25 


1397D shall apply for purposes of this subsection. 

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309 

1 


‘‘(d) NONAPPLICATION OF CERTAIN RULES.—Sec2 
tions 146 (relating to volume cap) and 147(d) (relating 
3 
to acquisition of existing property not permitted) shall not 
4 
apply to any recovery zone facility bond.’’. 
5 


(b) CLERICAL AMENDMENT.—The table of parts for 
6 
subchapter Y of chapter 1 of such Code is amended by 
7 
adding at the end the following new item: 

‘‘PART III. RECOVERY ZONE BONDS.’’. 

8 
(c) EFFECTIVE DATE.—The amendments made by 
9 
this section shall apply to obligations issued after the date 
10 
of the enactment of this Act. 
11 
SEC. 1532. TRIBAL ECONOMIC DEVELOPMENT BONDS. 
12 
(a) IN GENERAL.—Section 7871 is amended by add13 
ing at the end the following new subsection: 
14 
‘‘(f) TRIBAL ECONOMIC DEVELOPMENT BONDS.— 
15 
‘‘(1) ALLOCATION OF LIMITATION.— 
16 
‘‘(A) IN GENERAL.—The Secretary shall 
17 
allocate the national tribal economic develop18 
ment bond limitation among the Indian tribal 
19 
governments in such manner as the Secretary, 
20 


in consultation with the Secretary of the Inte


21 


rior, determines appropriate. 

22 


‘‘(B) NATIONAL LIMITATION.—There is a 

23 


national tribal economic development bond limi


24 


tation of $2,000,000,000. 

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310 


1 


‘‘(2) BONDS TREATED AS EXEMPT FROM 

2 


TAX.—In the case of a tribal economic development 

3 


bond— 

4 


‘‘(A) notwithstanding subsection (c), such 

5 


bond shall be treated for purposes of this title 
6 
in the same manner as if such bond were issued 
7 
by a State, and 
8 
‘‘(B) section 146 shall not apply. 
9 
‘‘(3) TRIBAL ECONOMIC DEVELOPMENT 
10 
BOND.— 
11 
‘‘(A) IN GENERAL.—For purposes of this 
12 
section, the term ‘tribal economic development 
13 
bond’ means any bond issued by an Indian trib14 
al government— 
15 
‘‘(i) the interest on which is not ex16 
empt from tax under section 103 by reason 
17 
of subsection (c) (determined without re18 
gard to this subsection) but would be so 
19 
exempt if issued by a State or local govern20 
ment, and 
21 


‘‘(ii) which is designated by the In


22 


dian tribal government as a tribal eco


23 


nomic development bond for purposes of 

24 


this subsection. 

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311 

1 


‘‘(B) EXCEPTIONS.—The term tribal eco


2 


nomic development bond shall not include any 

3 


bond issued as part of an issue if any portion 

4 


of the proceeds of such issue are used to fi


5 


nance— 
6 
‘‘(i) any portion of a building in which 
7 
class II or class III gaming (as defined in 
8 
section 4 of the Indian Gaming Regulatory 
9 
Act) is conducted or housed or any other 
10 
property actually used in the conduct of 
11 
such gaming, or 
12 
‘‘(ii) any facility located outside the 
13 
Indian reservation (as defined in section 
14 
168(j)(6)). 
15 
‘‘(C) LIMITATION ON AMOUNT OF BONDS 
16 
DESIGNATED.—The maximum aggregate face 
17 
amount of bonds which may be designated by 
18 
any Indian tribal government under subpara19 
graph (A) shall not exceed the amount of na20 
tional tribal economic development bond limita21 


tion allocated to such government under para


22 


graph (1).’’. 

23 


(b) STUDY.—The Secretary of the Treasury, or the 
24 
Secretary’s delegate, shall conduct a study of the effects 
25 
of the amendment made by subsection (a). Not later than 

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312 
1 
1 year after the date of the enactment of this Act, the 
2 
Secretary of the Treasury, or the Secretary’s delegate, 
3 
shall report to Congress on the results of the studies con4 
ducted under this paragraph, including the Secretary’s 
5 
recommendations regarding such amendment. 
6 
(c) EFFECTIVE DATE.—The amendment made by 
7 
subsection (a) shall apply to obligations issued after the 
8 
date of the enactment of this Act. 
9 
PART 5—REPEAL OF WITHHOLDING TAX ON 
10 
GOVERNMENT CONTRACTORS 
11 
SEC. 1541. REPEAL OF WITHHOLDING TAX ON GOVERN12 
MENT CONTRACTORS. 
13 
Section 3402 is amended by striking subsection (t). 
14 
Subtitle G—Energy Incentives 
15 
PART 1—RENEWABLE ENERGY INCENTIVES 
16 
SEC. 1601. EXTENSION OF CREDIT FOR ELECTRICITY PRO17 
DUCED FROM CERTAIN RENEWABLE RE18 
SOURCES. 
19 
(a) IN GENERAL.—Subsection (d) of section 45 is 
20 
amended— 
21 


(1) by striking ‘‘2010’’ in paragraph (1) and in


22 


serting ‘‘2013’’, 

23 


(2) by striking ‘‘2011’’ each place it appears in 

24 


paragraphs (2), (3), (4), (6), (7) and (9) and insert


25 


ing ‘‘2014’’, and 

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313 

1 


(3) by striking ‘‘2012’’ in paragraph (11)(B) 

2 


and inserting ‘‘2014’’. 

3 


(b) TECHNICAL AMENDMENT.—Paragraph (5) of 
4 
section 45(d) is amended by striking ‘‘and before’’ and 
5 
all that follows and inserting ‘‘ and before October 3, 
6 
2008.’’. 
7 
(c) EFFECTIVE DATE.— 
8 
(1) IN GENERAL.—The amendments made by 
9 
subsection (a) shall apply to property placed in serv10 
ice after the date of the enactment of this Act. 
11 
(2) TECHNICAL AMENDMENT.—The amendment 
12 
made by subsection (b) shall take effect as if in13 
cluded in section 102 of the Energy Improvement 
14 
and Extension Act of 2008. 
15 
SEC. 1602. ELECTION OF INVESTMENT CREDIT IN LIEU OF 
16 
PRODUCTION CREDIT. 
17 
(a) IN GENERAL.—Subsection (a) of section 48 is 
18 
amended by adding at the end the following new para19 
graph: 
20 
‘‘(5) ELECTION TO TREAT QUALIFIED FACILI21 


TIES AS ENERGY PROPERTY.— 

22 


‘‘(A) IN GENERAL.—In the case of any 

23 


qualified investment credit facility placed in 

24 


service in 2009 or 2010— 

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314 

1 


‘‘(i) such facility shall be treated as 

2 


energy property for purposes of this sec


3 


tion, and 

4 


‘‘(ii) the energy percentage with re


5 


spect to such property shall be 30 percent. 
6 
‘‘(B) DENIAL OF PRODUCTION CREDIT.— 
7 
No credit shall be allowed under section 45 for 
8 
any taxable year with respect to any qualified 
9 
investment credit facility. 
10 
‘‘(C) QUALIFIED INVESTMENT CREDIT FA11 
CILITY.—For purposes of this paragraph, the 
12 
term ‘qualified investment credit facility’ means 
13 
any facility described in paragraph (1), (2), (3), 
14 
(4), (6), (7), (9), or (11) of section 45(d) if no 
15 
credit has been allowed under section 45 with 
16 
respect to such facility and the taxpayer makes 
17 
an irrevocable election to have this paragraph 
18 
apply to such facility.’’. 
19 
(b) EFFECTIVE DATE.—The amendments made by 
20 
this section shall apply to facilities placed in service after 
21 
December 31, 2008. 
22 
SEC. 1603. REPEAL OF CERTAIN LIMITATIONS ON CREDIT 
23 


FOR RENEWABLE ENERGY PROPERTY. 

24 


(a) REPEAL OF LIMITATION ON CREDIT FOR QUALI25 
FIED SMALL WIND ENERGY PROPERTY.—Paragraph (4) 

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315 
1 
of section 48(c) is amended by striking subparagraph (B) 
2 
and by redesignating subparagraphs (C) and (D) as sub3 
paragraphs (B) and (C). 
4 


(b) REPEAL OF LIMITATION ON PROPERTY FI5 
NANCED BY SUBSIDIZED ENERGY FINANCING.— 
6 
(1) IN GENERAL.—Subsection (a) of section 48 
7 
is amended by striking paragraph (4). 
8 
(2) CONFORMING AMENDMENTS.— 
9 
(A) Section 25C(e)(1) is amended by strik10 
ing ‘‘(8), and (9)’’ and inserting ‘‘and (8)’’. 
11 
(B) Section 25D(e) is amended by striking 
12 
paragraph (9). 
13 
(c) EFFECTIVE DATE.— 
14 
(1) IN GENERAL.—Except as provided in para15 
graph (2),the amendment made by this section shall 
16 
apply to periods after December 31, 2008, under 
17 
rules similar to the rules of section 48(m) of the In18 
ternal Revenue Code of 1986 (as in effect on the day 
19 
before the date of the enactment of the Revenue 
20 
Reconciliation Act of 1990). 
21 


(2) CONFORMING AMENDMENTS.—The amend


22 


ments made by subsection (b)(2) shall apply to tax


23 


able years beginning after December 31, 2008. 

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316 


1 
SEC. 1604. COORDINATION WITH RENEWABLE ENERGY 
2 


GRANTS. 

3 


Section 48 is amended by adding at the end the fol4 
lowing new subsection: 
5 
‘‘(d) COORDINATION WITH DEPARTMENT OF EN6 
ERGY GRANTS.—In the case of any property with respect 
7 
to which the Secretary of Energy makes a grant under 
8 
section 1721 of the American Recovery and Reinvestment 
9 
Tax Act of 2009— 
10 
‘‘(1) DENIAL OF PRODUCTION AND INVEST11 
MENT CREDITS.—No credit shall be determined 
12 
under this section or section 45 with respect to such 
13 
property for the taxable year in which such grant is 
14 
made or any subsequent taxable year. 
15 
‘‘(2) RECAPTURE OF CREDITS FOR PROGRESS 
16 
EXPENDITURES MADE BEFORE GRANT.—If a credit 
17 
was determined under this section with respect to 
18 
such property for any taxable year ending before 
19 
such grant is made— 
20 
‘‘(A) the tax imposed under subtitle A on 
21 


the taxpayer for the taxable year in which such 

22 


grant is made shall be increased by so much of 

23 


such credit as was allowed under section 38, 

24 


‘‘(B) the general business carryforwards 

25 


under section 39 shall be adjusted so as to re-

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317 

1 


capture the portion of such credit which was 

2 


not so allowed, and 

3 


‘‘(C) the amount of such grant shall be de


4 


termined without regard to any reduction in the 

5 


basis of such property by reason of such credit. 
6 
‘‘(3) TREATMENT OF GRANTS.—Any such grant 
7 
shall— 
8 
‘‘(A) not be includible in the gross income 
9 
of the taxpayer, but 
10 
‘‘(B) shall be taken into account in deter11 
mining the basis of the property to which such 
12 
grant relates, except that the basis of such 
13 
property shall be reduced under section 50(c) in 
14 
the same manner as a credit allowed under sub15 
section (a).’’. 
16 
PART 2—INCREASED ALLOCATIONS OF NEW 
17 
CLEAN RENEWABLE ENERGY BONDS AND 
18 
QUALIFIED ENERGY CONSERVATION BONDS 
19 
SEC. 1611. INCREASED LIMITATION ON ISSUANCE OF NEW 
20 
CLEAN RENEWABLE ENERGY BONDS. 
21 


Subsection (c) of section 54C is amended by adding 
22 
at the end the following new paragraph: 
23 


‘‘(4) ADDITIONAL LIMITATION.—The national 

24 


new clean renewable energy bond limitation shall be 

25 


increased by $1,600,000,000. Such increase shall be 

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318 

1 


allocated by the Secretary consistent with the rules 

2 


of paragraphs (2) and (3).’’. 

3 
SEC. 1612. INCREASED LIMITATION AND EXPANSION OF 
4 


QUALIFIED ENERGY CONSERVATION BONDS. 

5 


(a) INCREASED LIMITATION.—Subsection (e) of sec6 
tion 54D is amended by adding at the end the following 
7 
new paragraph: 
8 
‘‘(4) ADDITIONAL LIMITATION.—The national 
9 
qualified energy conservation bond limitation shall 
10 
be increased by $2,400,000,000. Such increase shall 
11 
be allocated by the Secretary consistent with the 
12 
rules of paragraphs (1), (2), and (3).’’. 
13 
(b) LOANS AND GRANTS TO IMPLEMENT GREEN 
14 
COMMUNITY PROGRAMS.— 
15 
(1) IN GENERAL.—Subparagraph (A) of section 
16 
54D(f)(1) is amended by inserting ‘‘(or loans or 
17 
grants for capital expenditures to implement any 
18 
green community program)’’ after ‘‘Capital expendi19 
tures’’. 
20 
(2) BONDS TO IMPLEMENT GREEN COMMUNITY 
21 


PROGRAMS NOT TREATED AS PRIVATE ACTIVITY 
22 
BONDS FOR PURPOSES OF LIMITATIONS ON QUALI23 
FIED ENERGY CONSERVATION BONDS .—Subsection 
24 


(e) of section 54D is amended by adding at the end 

25 


the following new paragraph: 

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1 
‘‘(4) BONDS TO IMPLEMENT GREEN COMMU2 
NITY PROGRAMS NOT TREATED AS PRIVATE ACTIV3 


ITY BONDS.—For purposes of paragraph (3) and 

4 


subsection (f)(2), a bond shall not be treated as a 

5 


private activity bond solely because proceeds of the 
6 
issue of which such bond is a part are to be used 
7 
for loans or grants for capital expenditures to imple8 
ment any green community program.’’. 
9 
(c) EFFECTIVE DATE.—The amendments made by 
10 
this section shall apply to obligations issued after the date 
11 
of the enactment of this Act. 
12 
PART 3—ENERGY CONSERVATION INCENTIVES 
13 
SEC. 1621. EXTENSION AND MODIFICATION OF CREDIT FOR 
14 
NONBUSINESS ENERGY PROPERTY. 
15 
(a) IN GENERAL.—Section 25C is amended by strik16 
ing subsections (a) and (b) and inserting the following new 
17 
subsections: 
18 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in19 
dividual, there shall be allowed as a credit against the tax 
20 
imposed by this chapter for the taxable year an amount 
21 
equal to 30 percent of the sum of— 
22 


‘‘(1) the amount paid or incurred by the tax


23 


payer during such taxable year for qualified energy 

24 


efficiency improvements, and 

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1 


‘‘(2) the amount of the residential energy prop


2 


erty expenditures paid or incurred by the taxpayer 

3 


during such taxable year. 

4 


‘‘(b) LIMITATION.—The aggregate amount of the 
5 
credits allowed under this section for taxable years begin6 
ning in 2009 and 2010 with respect to any taxpayer shall 
7 
not exceed $1,500.’’. 
8 
(b) EXTENSION.—Section 25C(g)(2) is amended by 
9 
striking ‘‘December 31, 2009’’ and inserting ‘‘December 
10 
31, 2010’’. 
11 
(c) EFFECTIVE DATE.—The amendments made by 
12 
this section shall apply to taxable years beginning after 
13 
December 31, 2008. 
14 
SEC. 1622. MODIFICATION OF CREDIT FOR RESIDENTIAL 
15 
ENERGY EFFICIENT PROPERTY. 
16 
(a) REMOVAL OF CREDIT LIMITATION FOR PROP17 
ERTY PLACED IN SERVICE.— 
18 
(1) IN GENERAL.—Paragraph (1) of section 
19 
25D(b) is amended to read as follows: 
20 
‘‘(1) MAXIMUM CREDIT FOR FUEL CELLS.—In 
21 


the case of any qualified fuel cell property expendi


22 


ture, the credit allowed under subsection (a) (deter


23 


mined without regard to subsection (c)) for any tax


24 


able year shall not exceed $500 with respect to each 

25 


half kilowatt of capacity of the qualified fuel cell 

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1 


property (as defined in section 48(c)(1)) to which 

2 


such expenditure relates.’’. 

3 


(2) CONFORMING AMENDMENT.—Paragraph (4) 

4 


of section 25D(e) is amended— 

5 


(A) by striking all that precedes subpara6 
graph (B) and inserting the following: 
7 
‘‘(4) FUEL CELL EXPENDITURE LIMITATIONS 
8 
IN CASE OF JOINT OCCUPANCY.—In the case of any 
9 
dwelling unit with respect to which qualified fuel cell 
10 
property expenditures are made and which is jointly 
11 
occupied and used during any calendar year as a 
12 
residence by two or more individuals the following 
13 
rules shall apply: 
14 
‘‘(A) MAXIMUM EXPENDITURES FOR FUEL 
15 
CELLS.—The maximum amount of such ex16 
penditures which may be taken into account 
17 
under subsection (a) by all such individuals 
18 
with respect to such dwelling unit during such 
19 
calendar year shall be $1,667 in the case of 
20 
each half kilowatt of capacity of qualified fuel 
21 


cell property (as defined in section 48(c)(1)) 

22 


with respect to which such expenditures re


23 


late.’’, and 

24 


(B) by striking subparagraph (C). 

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1 


(b) EFFECTIVE DATE.—The amendments made by 
2 
this section shall apply to taxable years beginning after 
3 
December 31, 2008. 
4 
SEC. 1623. TEMPORARY INCREASE IN CREDIT FOR ALTER5 


NATIVE FUEL VEHICLE REFUELING PROP6 
ERTY. 
7 
(a) IN GENERAL.—Section 30C(e) is amended by 
8 
adding at the end the following new paragraph: 
9 
‘‘(6) SPECIAL RULE FOR PROPERTY PLACED IN 
10 
SERVICE DURING 2009 AND 2010.—In the case of 
11 
property placed in service in taxable years beginning 
12 
after December 31, 2008, and before January 1, 
13 
2011— 
14 
‘‘(A) in the case of any such property 
15 
which does not relate to hydrogen— 
16 
‘‘(i) subsection (a) shall be applied by 
17 
substituting ‘50 percent’ for ‘30 percent’, 
18 
‘‘(ii) subsection (b)(1) shall be applied 
19 
by substituting ‘$50,000’ for ‘$30,000’, 
20 
and 
21 


‘‘(iii) subsection (b)(2) shall be ap


22 


plied by substituting ‘$2,000’ for ‘$1,000’, 
23 
and 
24 


‘‘(B) in the case of any such property 

25 


which relates to hydrogen, subsection (b) shall 

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1 


be applied by substituting ‘$200,000’ for 

2 


‘$30,000’.’’. 

3 


(b) EFFECTIVE DATE.—The amendment made by 
4 
this section shall apply to taxable years beginning after 
5 
December 31, 2008. 
6 
PART 4—ENERGY RESEARCH INCENTIVES 
7 
SEC. 1631. INCREASED RESEARCH CREDIT FOR ENERGY RE8 
SEARCH. 
9 
(a) IN GENERAL.—Section 41 is amended by redesig10 
nating subsection (h) as subsection (i) and by inserting 
11 
after subsection (g) the following new subsection: 
12 
‘‘(h) ENERGY RESEARCH CREDIT.—In the case of 
13 
any taxable year beginning in 2009 or 2010— 
14 
‘‘(1) IN GENERAL.—The credit determined 
15 
under subsection (a)(1) shall be increased by 20 per16 
cent of the qualified energy research expenses for 
17 
the taxable year. 
18 
‘‘(2) QUALIFIED ENERGY RESEARCH EX19 
PENSES.—For purposes of this subsection, the term 
20 
‘qualified energy research expenses’ means so much 
21 


of the taxpayer’s qualified research expenses as are 

22 


related to the fields of fuel cells and battery tech


23 


nology, renewable energy, energy conservation tech


24 


nology, efficient transmission and distribution of 

25 


electricity, and carbon capture and sequestration. 

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1 


‘‘(3) COORDINATION WITH OTHER RESEARCH 

2 


CREDITS.— 

3 


‘‘(A) INCREMENTAL CREDIT.—The amount 

4 


of qualified energy research expenses taken into 

5 


account under subsection (a)(1)(A) shall not ex6 
ceed the base amount. 
7 
‘‘(B) ALTERNATIVE SIMPLIFIED CREDIT.— 
8 
For purposes of subsection (c)(5), the amount 
9 
of qualified energy research expenses taken into 
10 
account for the taxable year for which the cred11 
it is being determined shall not exceed— 
12 
‘‘(i) in the case of subsection 
13 
(c)(5)(A), 50 percent of the average quali14 
fied research expenses for the 3 taxable 
15 
years preceding the taxable year for which 
16 
the credit is being determined, and 
17 
‘‘(ii) in the case of subsection 
18 
(c)(5)(B)(ii), zero. 
19 
‘‘(C) BASIC RESEARCH AND ENERGY RE20 
SEARCH CONSORTIUM PAYMENTS.—Any amount 
21 


taken into account under paragraph (1) shall 

22 


not be taken into account under paragraph (2) 

23 


or (3) of subsection (a).’’. 

24 


(b) CONFORMING AMENDMENT.—Subparagraph (B) 
25 
of section 41(i)(1)(B), as redesignated by subsection (a), 

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325 
1 
is amended by inserting ‘‘(in the case of the increase in 
2 
the credit determined under subsection (h), December 31, 
3 
2010)’’ after ‘‘December 31, 2009’’. 
4 


(c) EFFECTIVE DATE.—The amendments made by 
5 
this section shall apply to taxable years beginning after 
6 
December 31, 2008. 
7 
Subtitle H—Other Provisions 
8 
PART 1—APPLICATION OF CERTAIN LABOR 
9 
STANDARDS TO PROJECTS FINANCED WITH 
10 
CERTAIN TAX-FAVORED BONDS 
11 
SEC. 1701. APPLICATION OF CERTAIN LABOR STANDARDS 
12 
TO PROJECTS FINANCED WITH CERTAIN TAX13 
FAVORED BONDS. 
14 
Subchapter IV of chapter 31 of the title 40, United 
15 
States Code, shall apply to projects financed with the pro16 
ceeds of— 
17 
(1) any qualified clean renewable energy bond 
18 
(as defined in section 54C of the Internal Revenue 
19 
Code of 1986) issued after the date of the enact20 
ment of this Act, 
21 


(2) any qualified energy conservation bond (as 

22 


defined in section 54D of the Internal Revenue Code 

23 


of 1986) issued after the date of the enactment of 
24 
this Act, 

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1 


(3) any qualified zone academy bond (as de


2 


fined in section 54E of the Internal Revenue Code 

3 


of 1986) issued after the date of the enactment of 

4 


this Act, 

5 


(4) any qualified school construction bond (as 
6 
defined in section 54F of the Internal Revenue Code 
7 
of 1986), and 
8 
(5) any recovery zone economic development 
9 
bond (as defined in section 1400U–2 of the Internal 
10 
Revenue Code of 1986). 
11 
PART 2—GRANTS TO PROVIDE FINANCING FOR 
12 
LOW-INCOME HOUSING 
13 
SEC. 1711. GRANTS TO STATES FOR LOW-INCOME HOUSING 
14 
PROJECTS IN LIEU OF LOW-INCOME HOUS15 
ING CREDIT ALLOCATIONS FOR 2009. 
16 
(a) IN GENERAL.—The Secretary of the Treasury 
17 
shall make a grant to the housing credit agency of each 
18 
State in an amount equal to such State’s low-income hous19 
ing grant election amount. 
20 
(b) LOW-INCOME HOUSING GRANT ELECTION 
21 
AMOUNT.—For purposes of this section, the term ‘‘low22 
income housing grant election amount’’ means, with re23 
spect to any State, such amount as the State may elect 
24 
which does not exceed 85 percent of the product of— 
25 


(1) the sum of— 

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1 


(A) 100 percent of the State housing credit 
2 
ceiling for 2009 which is attributable to 
3 


amounts described in clauses (i) and (iii) of sec


4 


tion 42(h)(3)(C) of the Internal Revenue Code 

5 


of 1986, and 
6 
(B) 40 percent of the State housing credit 
7 
ceiling for 2009 which is attributable to 
8 
amounts described in clauses (ii) and (iv) of 
9 
such section, multiplied by 
10 
(2) 10. 
11 
(c) SUBAWARDS FOR LOW-INCOME BUILDINGS.— 
12 
(1) IN GENERAL.—A State housing credit agen13 
cy receiving a grant under this section shall use such 
14 
grant to make subawards to finance the construction 
15 
or acquisition and rehabilitation of qualified low-in16 
come buildings. A subaward under this section may 
17 
be made to finance a qualified low-income building 
18 
with or without an allocation under section 42 of the 
19 
Internal Revenue Code of 1986, except that a State 
20 
housing credit agency may make subawards to fi21 


nance qualified low-income buildings without an allo


22 


cation only if it makes a determination that such use 

23 


will increase the total funds available to the State to 

24 


build and rehabilitate affordable housing. In com


25 


plying with such determination requirement, a State 

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1 


housing credit agency shall establish a process in 

2 


which applicants that are allocated credits are re


3 


quired to demonstrate good faith efforts to obtain 

4 


investment commitments for such credits before the 

5 


agency makes such subawards. 
6 
(2) SUBAWARDS SUBJECT TO SAME REQUIRE7 
MENTS AS LOW-INCOME HOUSING CREDIT ALLOCA8 
TIONS.—Any such subaward with respect to any 
9 
qualified low-income building shall be made in the 
10 
same manner and shall be subject to the same limi11 
tations (including rent, income, and use restrictions 
12 
on such building) as an allocation of housing credit 
13 
dollar amount allocated by such State housing credit 
14 
agency under section 42 of the Internal Revenue 
15 
Code of 1986, except that such subawards shall not 
16 
be limited by, or otherwise affect (except as provided 
17 
in subsection (h)(3)(J) of such section), the State 
18 
housing credit ceiling applicable to such agency. 
19 
(3) COMPLIANCE AND ASSET MANAGEMENT.— 
20 
The State housing credit agency shall perform asset 
21 


management functions to ensure compliance with 

22 


section 42 of the Internal Revenue Code of 1986 

23 


and the long-term viability of buildings funded by 

24 


any subaward under this section. The State housing 

25 


credit agency may collect reasonable fees from a 

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329 

1 


subaward recipient to cover expenses associated with 

2 


the performance of its duties under this paragraph. 

3 


The State housing credit agency may retain an 

4 


agent or other private contractor to satisfy the re


5 


quirements of this paragraph. 
6 
(4) RECAPTURE.—The State housing credit 
7 
agency shall impose conditions or restrictions, in8 
cluding a requirement providing for recapture, on 
9 
any subaward under this section so as to assure that 
10 
the building with respect to which such subaward is 
11 
made remains a qualified low-income building during 
12 
the compliance period. Any such recapture shall be 
13 
payable to the Secretary of the Treasury for deposit 
14 
in the general fund of the Treasury and may be en15 
forced by means of liens or such other methods as 
16 
the Secretary of the Treasury determines appro17 
priate. 
18 
(d) RETURN OF UNUSED GRANT FUNDS.—Any grant 
19 
funds not used to make subawards under this section be20 
fore January 1, 2011, shall be returned to the Secretary 
21 
of the Treasury on such date. Any subawards returned 
22 
to the State housing credit agency on or after such date 
23 
shall be promptly returned to the Secretary of the Treas24 
ury. Any amounts returned to the Secretary of the Treas


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1 
ury under this subsection shall be deposited in the general 
2 
fund of the Treasury. 
3 


(e) DEFINITIONS.—Any term used in this section 
4 
which is also used in section 42 of the Internal Revenue 
5 
Code of 1986 shall have the same meaning for purposes 
6 
of this section as when used in such section 42. Any ref7 
erence in this section to the Secretary of the Treasury 
8 
shall be treated as including the Secretary’s delegate. 
9 
(f) APPROPRIATIONS.—There is hereby appropriated 
10 
to the Secretary of the Treasury such sums as may be 
11 
necessary to carry out this section. 
12 
PART 3—GRANTS FOR SPECIFIED ENERGY 
13 
PROPERTY IN LIEU OF TAX CREDITS 
14 
SEC. 1721. GRANTS FOR SPECIFIED ENERGY PROPERTY IN 
15 
LIEU OF TAX CREDITS. 
16 
(a) IN GENERAL.—Upon application, the Secretary 
17 
of Energy shall, within 60 days of the application and sub18 
ject to the requirements of this section, provide a grant 
19 
to each person who places in service specified energy prop20 
erty during 2009 or 2010 to reimburse such person for 
21 
a portion of the expense of such facility as provided in 
22 
subsection (b). 
23 


(b) GRANT AMOUNT.— 

24 


(1) IN GENERAL.—The amount of the grant 

25 


under subsection (a) with respect to any specified 

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1 


energy property shall be the applicable percentage of 

2 


the basis of such facility. 

3 


(2) APPLICABLE PERCENTAGE.—For purposes 

4 


of paragraph (1), the term ‘‘applicable percentage’’ 

5 


means— 
6 
(A) 30 percent in the case of any property 
7 
described in paragraphs (1) through (4) of sub8 
section (c), and 
9 
(B) 10 percent in the case of any other 
10 
property. 
11 
(3) DOLLAR LIMITATIONS.—In the case of 
12 
property described in paragraph (2), (6), or (7) of 
13 
subsection (c), the amount of any grant under this 
14 
section with respect to such property shall not ex15 
ceed the limitation described in section 48(c)(1)(B), 
16 
48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue 
17 
Code of 1986, respectively, with respect to such 
18 
property. 
19 
(c) SPECIFIED ENERGY PROPERTY.—For purposes 
20 
of this section, the term ‘‘specified energy property’’ 
21 
means any of the following: 
22 


(1) QUALIFIED FACILITIES.—Any facility de


23 


scribed in paragraph (1), (2), (3), (4), (6), (7), (9), 

24 


or (11) of section 45(d) of the Internal Revenue 

25 


Code of 1986. 

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1 


(2) QUALIFIED FUEL CELL PROPERTY.—Any 

2 


qualified fuel cell property (as defined in section 

3 


48(c)(1) of such Code). 

4 


(3) SOLAR PROPERTY.—Any property described 

5 


in clause (i) or (ii) of section 48(a)(3)(A) of such 
6 
Code. 
7 
(4) QUALIFIED SMALL WIND ENERGY PROP8 
ERTY.—Any qualified small wind energy property 
9 
(as defined in section 48(c)(4) of such Code). 
10 
(5) GEOTHERMAL PROPERTY.—Any property 
11 
described in clause (iii) of section 48(a)(3)(A) of 
12 
such Code. 
13 
(6) QUALIFIED MICROTURBINE PROPERTY.— 
14 
Any qualified microturbine property (as defined in 
15 
section 48(c)(2) of such Code). 
16 
(7) COMBINED HEAT AND POWER SYSTEM 
17 
PROPERTY.—Any combined heat and power system 
18 
property (as defined in section 48(c)(3) of such 
19 
Code). 
20 
(8) GEOTHERMAL HEATPUMP PROPERTY.—Any 
21 
property described in clause (vii) of section 
22 


48(a)(3)(A) of such Code. 

23 


(d) APPLICATION OF CERTAIN RULES.—In making 
24 
grants under this section, the Secretary of Energy shall 
25 
apply rules similar to the rules of section 50 of the Inter-

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333 
1 
nal Revenue Code of 1986. In applying such rules, if the 
2 
facility is disposed of, or otherwise ceases to be a qualified 
3 
renewable energy facility, the Secretary of Energy shall 
4 
provide for the recapture of the appropriate percentage of 
5 
the grant amount in such manner as the Secretary of En6 
ergy determines appropriate. 
7 
(e) EXCEPTION FOR CERTAIN NON-TAXPAYERS.— 
8 
The Secretary of Energy shall not make any grant under 
9 
this section to any Federal, State, or local government (or 
10 
any political subdivision, agency, or instrumentality there11 
of) or any organization described in section 501(c) of the 
12 
Internal Revenue Code of 1986 and exempt from tax 
13 
under section 501(a) of such Code. 
14 
(f) DEFINITIONS.—Terms used in this section which 
15 
are also used in section 45 or 48 of the Internal Revenue 
16 
Code of 1986 shall have the same meaning for purposes 
17 
of this section as when used in such section 45 or 48. 
18 
Any reference in this section to the Secretary of the Treas19 
ury shall be treated as including the Secretary’s delegate. 
20 
(g) COORDINATION BETWEEN DEPARTMENTS OF 
21 
TREASURY AND ENERGY.—The Secretary of the Treasury 
22 
shall provide the Secretary of Energy with such technical 
23 
assistance as the Secretary of Energy may require in car24 
rying out this section. The Secretary of Energy shall pro25 
vide the Secretary of the Treasury with such information 

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334 
1 
as the Secretary of the Treasury may require in carrying 
2 
out the amendment made by section 1604. 
3 


(h) APPROPRIATIONS.—There is hereby appropriated 
4 
to the Secretary of Energy such sums as may be necessary 
5 
to carry out this section. 
6 
(i) TERMINATION.—The Secretary of Energy shall 
7 
not make any grant to any person under this section un8 
less the application of such person for such grant is re9 
ceived before October 1, 2011. 
10 
PART 4—STUDY OF ECONOMIC, EMPLOYMENT, 
11 
AND RELATED EFFECTS OF THIS ACT 
12 
SEC. 1731. STUDY OF ECONOMIC, EMPLOYMENT, AND RE13 
LATED EFFECTS OF THIS ACT. 
14 
On February 1, 2010, and every 3 months thereafter 
15 
in calendar year 2010, the Comptroller General of the 
16 
United States shall submit to the Committee on Ways and 
17 
Means a written report on the most recent national (and, 
18 
where available, State-by-State) information on— 
19 
(1) the economic effects of this Act; 
20 
(2) the employment effects of this Act, includ21 
ing— 
22 


(A) a comparison of the number of jobs 

23 


preserved and the number of jobs created as a 

24 


result of this Act; and 

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335 

1 


(B) a comparison of the numbers of jobs 

2 


preserved and the number of jobs created in 

3 


each of the public and private sectors; 

4 


(3) the share of tax and non-tax expenditures 

5 


provided under this Act that were spent or saved, by 
6 
group and income class; 
7 
(4) how the funds provided to States under this 
8 
Act have been spent, including a breakdown of— 
9 
(A) funds used for services provided to citi10 
zens; and 
11 
(B) wages and other compensation for 
12 
public employees; and 
13 
(5) a description of any funds made available 
14 
under this Act that remain unspent, and the reasons 
15 
why. 
16 
TITLE II—ASSISTANCE FOR UN17 
EMPLOYED WORKERS AND 
18 
STRUGGLING FAMILIES 
19 
SEC. 2000. SHORT TITLE. 
20 
This title may be cited as the ‘‘Assistance for Unem21 
ployed Workers and Struggling Families Act’’. 

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336 

1 


Subtitle A—Unemployment 

2 


Insurance 

3 
SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT 
4 


COMPENSATION PROGRAM. 

5 


(a) IN GENERAL.—Section 4007 of the Supplemental 
6 
Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 
7 
3304 note), as amended by section 4 of the Unemployment 
8 
Compensation Extension Act of 2008 (Public Law 1109 
449; 122 Stat. 5015), is amended— 
10 
(1) by striking ‘‘March 31, 2009’’ each place it 
11 
appears and inserting ‘‘December 31, 2009’’; 
12 
(2) in the heading for subsection (b)(2), by 
13 
striking ‘‘MARCH 31, 2009’’ and inserting ‘‘DECEM14 
BER 31, 2009’’; and 
15 
(3) in subsection (b)(3), by striking ‘‘August 
16 
27, 2009’’ and inserting ‘‘May 31, 2010’’. 
17 
(b) FINANCING PROVISIONS.—Section 4004 of such 
18 
Act is amended by adding at the end the following: 
19 
‘‘(e) TRANSFER OF FUNDS.—Notwithstanding any 
20 
other provision of law, the Secretary of the Treasury shall 
21 
transfer from the general fund of the Treasury (from 
22 
funds not otherwise appropriated)— 
23 


‘‘(1) to the extended unemployment compensa


24 


tion account (as established by section 905 of the 

25 


Social Security Act) such sums as the Secretary of 

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337 

1 


Labor estimates to be necessary to make payments 

2 


to States under this title by reason of the amend


3 


ments made by section 2001(a) of the Assistance for 

4 


Unemployed Workers and Struggling Families Act; 
5 
and 
6 
‘‘(2) to the employment security administration 
7 
account (as established by section 901 of the Social 
8 
Security Act) such sums as the Secretary of Labor 
9 
estimates to be necessary for purposes of assisting 
10 
States in meeting administrative costs by reason of 
11 
the amendments referred to in paragraph (1). 
12 
There are appropriated from the general fund of the 
13 
Treasury, without fiscal year limitation, the sums referred 
14 
to in the preceding sentence and such sums shall not be 
15 
required to be repaid.’’. 
16 
SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION 
17 
BENEFITS. 
18 
(a) FEDERAL-STATE AGREEMENTS.—Any State 
19 
which desires to do so may enter into and participate in 
20 
an agreement under this section with the Secretary of 
21 
Labor (hereinafter in this section referred to as the ‘‘Sec22 
retary’’). Any State which is a party to an agreement 
23 
under this section may, upon providing 30 days’ written 
24 
notice to the Secretary, terminate such agreement. 
25 


(b) PROVISIONS OF AGREEMENT.— 

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338 

1 


(1) ADDITIONAL COMPENSATION.—Any agree


2 


ment under this section shall provide that the State 

3 


agency of the State will make payments of regular 

4 


compensation to individuals in amounts and to the 

5 


extent that they would be determined if the State 
6 
law of the State were applied, with respect to any 
7 
week for which the individual is (disregarding this 
8 
section) otherwise entitled under the State law to re9 
ceive regular compensation, as if such State law had 
10 
been modified in a manner such that the amount of 
11 
regular compensation (including dependents’ allow12 
ances) payable for any week shall be equal to the 
13 
amount determined under the State law (before the 
14 
application of this paragraph) plus an additional 
15 
$25. 
16 
(2) ALLOWABLE METHODS OF PAYMENT.—Any 
17 
additional compensation provided for in accordance 
18 
with paragraph (1) shall be payable either— 
19 
(A) as an amount which is paid at the 
20 
same time and in the same manner as any reg21 


ular compensation otherwise payable for the 

22 


week involved; or 

23 


(B) at the option of the State, by pay


24 


ments which are made separately from, but on 

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339 

1 


the same weekly basis as, any regular com


2 


pensation otherwise payable. 

3 


(c) NONREDUCTION RULE.—An agreement under 
4 
this section shall not apply (or shall cease to apply) with 
5 
respect to a State upon a determination by the Secretary 
6 
that the method governing the computation of regular 
7 
compensation under the State law of that State has been 
8 
modified in a manner such that— 
9 
(1) the average weekly benefit amount of reg10 
ular compensation which will be payable during the 
11 
period of the agreement (determined disregarding 
12 
any additional amounts attributable to the modifica13 
tion described in subsection (b)(1)) will be less than 
14 
(2) the average weekly benefit amount of reg15 
ular compensation which would otherwise have been 
16 
payable during such period under the State law, as 
17 
in effect on December 31, 2008. 
18 
(d) PAYMENTS TO STATES.— 
19 
(1) IN GENERAL.— 
20 
(A) FULL REIMBURSEMENT.—There shall 
21 


be paid to each State which has entered into an 

22 


agreement under this section an amount equal 

23 


to 100 percent of— 

24 


(i) the total amount of additional 

25 


compensation (as described in subsection 

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340 


1 


(b)(1)) paid to individuals by the State 

2 


pursuant to such agreement; and 

3 


(ii) any additional administrative ex


4 


penses incurred by the State by reason of 

5 


such agreement (as determined by the Sec6 
retary). 
7 
(B) TERMS OF PAYMENTS.—Sums payable 
8 
to any State by reason of such State’s having 
9 
an agreement under this section shall be pay10 
able, either in advance or by way of reimburse11 
ment (as determined by the Secretary), in such 
12 
amounts as the Secretary estimates the State 
13 
will be entitled to receive under this section for 
14 
each calendar month, reduced or increased, as 
15 
the case may be, by any amount by which the 
16 
Secretary finds that his estimates for any prior 
17 
calendar month were greater or less than the 
18 
amounts which should have been paid to the 
19 
State. Such estimates may be made on the 
20 
basis of such statistical, sampling, or other 
21 


method as may be agreed upon by the Secretary 

22 


and the State agency of the State involved. 
23 
(2) CERTIFICATIONS.—The Secretary shall 
24 


from time to time certify to the Secretary of the 

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1 


Treasury for payment to each State the sums pay


2 


able to such State under this section. 

3 


(3) APPROPRIATION.—There are appropriated 

4 


from the general fund of the Treasury, without fiscal 

5 


year limitation, such sums as may be necessary for 
6 
purposes of this subsection. 
7 
(e) APPLICABILITY.— 
8 
(1) IN GENERAL.—An agreement entered into 
9 
under this section shall apply to weeks of unemploy10 
ment— 
11 
(A) beginning after the date on which such 
12 
agreement is entered into; and 
13 
(B) ending before January 1, 2010. 
14 
(2) TRANSITION RULE FOR INDIVIDUALS RE15 
MAINING ENTITLED TO REGULAR COMPENSATION AS 
16 
OF JANUARY 1, 2010.—In the case of any individual 
17 
who, as of the date specified in paragraph (1)(B), 
18 
has not yet exhausted all rights to regular com19 
pensation under the State law of a State with re20 
spect to a benefit year that began before such date, 
21 


additional compensation (as described in subsection 

22 


(b)(1)) shall continue to be payable to such indi


23 


vidual for any week beginning on or after such date 

24 


for which the individual is otherwise eligible for reg


25 


ular compensation with respect to such benefit year. 

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1 


(3) TERMINATION.—Notwithstanding any other 

2 


provision of this subsection, no additional compensa


3 


tion (as described in subsection (b)(1)) shall be pay


4 


able for any week beginning after June 30, 2010. 

5 


(f) FRAUD AND OVERPAYMENTS.—The provisions of 
6 
section 4005 of the Supplemental Appropriations Act, 
7 
2008 (Public Law 110–252; 122 Stat. 2356) shall apply 
8 
with respect to additional compensation (as described in 
9 
subsection (b)(1)) to the same extent and in the same 
10 
manner as in the case of emergency unemployment com11 
pensation. 
12 
(g) APPLICATION TO OTHER UNEMPLOYMENT BENE13 
FITS.— 
14 
(1) IN GENERAL.—Each agreement under this 
15 
section shall include provisions to provide that the 
16 
purposes of the preceding provisions of this section 
17 
shall be applied with respect to unemployment bene18 
fits described in subsection (h)(3) to the same extent 
19 
and in the same manner as if those benefits were 
20 
regular compensation. 
21 


(2) ELIGIBILITY AND TERMINATION RULES.— 

22 


Additional compensation (as described in subsection 
23 
(b)(1))— 
24 


(A) shall not be payable, pursuant to this 

25 


subsection, with respect to any unemployment 

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343 

1 


benefits described in subsection (h)(3) for any 

2 


week beginning on or after the date specified in 

3 


subsection (e)(1)(B), except in the case of an 

4 


individual who was eligible to receive additional 

5 


compensation (as so described) in connection 
6 
with any regular compensation or any unem7 
ployment benefits described in subsection (h)(3) 
8 
for any period of unemployment ending before 
9 
such date; and 
10 
(B) shall in no event be payable for any 
11 
week beginning after the date specified in sub12 
section (e)(3). 
13 
(h) DISREGARD OF ADDITIONAL COMPENSATION FOR 
14 
PURPOSES OF MEDICAID AND SCHIP.—The monthly 
15 
equivalent of any additional compensation paid under this 
16 
section shall be disregarded in considering the amount of 
17 
income of an individual for any purposes under title XIX 
18 
and title XXI of the Social Security Act. 
19 
(i) DEFINITIONS.—For purposes of this section— 
20 
(1) the terms ‘‘compensation’’, ‘‘regular com21 


pensation’’, ‘‘benefit year’’, ‘‘State’’, ‘‘State agency’’, 

22 


‘‘State law’’, and ‘‘week’’ have the respective mean


23 


ings given such terms under section 205 of the Fed


24 


eral-State Extended Unemployment Compensation 

25 


Act of 1970 (26 U.S.C. 3304 note); 

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1 


(2) the term ‘‘emergency unemployment com


2 


pensation’’ means emergency unemployment com


3 


pensation under title IV of the Supplemental Appro


4 


priations Act, 2008 (Public Law 110–252; 122 Stat. 

5 


2353); and 
6 
(3) any reference to unemployment benefits de7 
scribed in this paragraph shall be considered to refer 
8 
to— 
9 
(A) extended compensation (as defined by 
10 
section 205 of the Federal-State Extended Un11 
employment Compensation Act of 1970); and 
12 
(B) unemployment compensation (as de13 
fined by section 85(b) of the Internal Revenue 
14 
Code of 1986) provided under any program ad15 
ministered by a State under an agreement with 
16 
the Secretary. 
17 
SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT 
18 
COMPENSATION MODERNIZATION. 
19 
(a) IN GENERAL.—Section 903 of the Social Security 
20 
Act (42 U.S.C. 1103) is amended by adding at the end 
21 
the following: 
22 
‘‘Special Transfers in Fiscal Years 2009, 2010, and 2011 
23 


for Modernization 

24 


‘‘(f)(1)(A) In addition to any other amounts, the Sec25 
retary of Labor shall provide for the making of unemploy


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1 
ment compensation modernization incentive payments 
2 
(hereinafter ‘incentive payments’) to the accounts of the 
3 
States in the Unemployment Trust Fund, by transfer from 
4 
amounts reserved for that purpose in the Federal unem5 
ployment account, in accordance with succeeding provi6 
sions of this subsection. 
7 
‘‘(B) The maximum incentive payment allowable 
8 
under this subsection with respect to any State shall, as 
9 
determined by the Secretary of Labor, be equal to the 
10 
amount obtained by multiplying $7,000,000,000 by the 
11 
same ratio as would apply under subsection (a)(2)(B) for 
12 
purposes of determining such State’s share of any excess 
13 
amount (as described in subsection (a)(1)) that would 
14 
have been subject to transfer to State accounts, as of Oc15 
tober 1, 2008, under the provisions of subsection (a). 
16 
‘‘(C) Of the maximum incentive payment determined 
17 
under subparagraph (B) with respect to a State— 
18 
‘‘(i) one-third shall be transferred to the ac19 
count of such State upon a certification under para20 
graph (4)(B) that the State law of such State meets 
21 


the requirements of paragraph (2); and 

22 


‘‘(ii) the remainder shall be transferred to the 

23 


account of such State upon a certification under 

24 


paragraph (4)(B) that the State law of such State 

25 


meets the requirements of paragraph (3). 

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346 

1 


‘‘(2) The State law of a State meets the requirements 
2 
of this paragraph if such State law— 
3 


‘‘(A) uses a base period that includes the most 

4 


recently completed calendar quarter before the start 

5 


of the benefit year for purposes of determining eligi6 
bility for unemployment compensation; or 
7 
‘‘(B) provides that, in the case of an individual 
8 
who would not otherwise be eligible for unemploy9 
ment compensation under the State law because of 
10 
the use of a base period that does not include the 
11 
most recently completed calendar quarter before the 
12 
start of the benefit year, eligibility shall be deter13 
mined using a base period that includes such cal14 
endar quarter. 
15 
‘‘(3) The State law of a State meets the requirements 
16 
of this paragraph if such State law includes provisions to 
17 
carry out at least 2 of the following subparagraphs: 
18 
‘‘(A) An individual shall not be denied regular 
19 
unemployment compensation under any State law 
20 
provisions relating to availability for work, active 
21 


search for work, or refusal to accept work, solely be


22 


cause such individual is seeking only part-time work 

23 


(as defined by the Secretary of Labor), except that 

24 


the State law provisions carrying out this subpara


25 


graph may exclude an individual if a majority of the 

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347 

1 


weeks of work in such individual’s base period do 

2 


not include part-time work (as so defined). 

3 


‘‘(B) An individual shall not be disqualified 

4 


from regular unemployment compensation for sepa


5 


rating from employment if that separation is for any 
6 
compelling family reason. For purposes of this sub7 
paragraph, the term ‘compelling family reason’ 
8 
means the following: 
9 
‘‘(i) Domestic violence, verified by such 
10 
reasonable and confidential documentation as 
11 
the State law may require, which causes the in12 
dividual reasonably to believe that such individ13 
ual’s continued employment would jeopardize 
14 
the safety of the individual or of any member 
15 
of the individual’s immediate family (as defined 
16 
by the Secretary of Labor). 
17 
‘‘(ii) The illness or disability of a member 
18 
of the individual’s immediate family (as those 
19 
terms are defined by the Secretary of Labor). 
20 
‘‘(iii) The need for the individual to accom21 


pany such individual’s spouse— 

22 


‘‘(I) to a place from which it is im


23 


practical for such individual to commute; 
24 
and 

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348 


1 


‘‘(II) due to a change in location of 

2 


the spouse’s employment. 

3 


‘‘(C) Weekly unemployment compensation is 

4 


payable under this subparagraph to any individual 

5 


who is unemployed (as determined under the State 
6 
unemployment compensation law), has exhausted all 
7 
rights to regular unemployment compensation under 
8 
the State law, and is enrolled and making satisfac9 
tory progress in a State-approved training program 
10 
or in a job training program authorized under the 
11 
Workforce Investment Act of 1998. Such programs 
12 
shall prepare individuals who have been separated 
13 
from a declining occupation, or who have been invol14 
untarily and indefinitely separated from employment 
15 
as a result of a permanent reduction of operations 
16 
at the individual’s place of employment, for entry 
17 
into a high-demand occupation. The amount of un18 
employment compensation payable under this sub19 
paragraph to an individual for a week of unemploy20 
ment shall be equal to the individual’s average week21 


ly benefit amount (including dependents’ allowances) 

22 


for the most recent benefit year, and the total 
23 
amount of unemployment compensation payable 
24 


under this subparagraph to any individual shall be 

25 


equal to at least 26 times the individual’s average 

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349 

1 


weekly benefit amount (including dependents’ allow


2 


ances) for the most recent benefit year. 

3 


‘‘(D) Dependents’ allowances are provided, in 

4 


the case of any individual who is entitled to receive 

5 


regular unemployment compensation and who has 
6 
any dependents (as defined by State law), in an 
7 
amount equal to at least $15 per dependent per 
8 
week, subject to any aggregate limitation on such al9 
lowances which the State law may establish (but 
10 
which aggregate limitation on the total allowance for 
11 
dependents paid to an individual may not be less 
12 
than $50 for each week of unemployment or 50 per13 
cent of the individual’s weekly benefit amount for 
14 
the benefit year, whichever is less). 
15 
‘‘(4)(A) Any State seeking an incentive payment 
16 
under this subsection shall submit an application therefor 
17 
at such time, in such manner, and complete with such in18 
formation as the Secretary of Labor may within 60 days 
19 
after the date of the enactment of this subsection prescribe 
20 
(whether by regulation or otherwise), including informa21 
tion relating to compliance with the requirements of para22 
graph (2) or (3), as well as how the State intends to use 
23 
the incentive payment to improve or strengthen the State’s 
24 
unemployment compensation program. The Secretary of 
25 
Labor shall, within 30 days after receiving a complete ap


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350 
1 
plication, notify the State agency of the State of the Sec2 
retary’s findings with respect to the requirements of para3 
graph (2) or (3) (or both). 
4 


‘‘(B)(i) If the Secretary of Labor finds that the State 
5 
law provisions (disregarding any State law provisions 
6 
which are not then currently in effect as permanent law 
7 
or which are subject to discontinuation) meet the require8 
ments of paragraph (2) or (3), as the case may be, the 
9 
Secretary of Labor shall thereupon make a certification 
10 
to that effect to the Secretary of the Treasury, together 
11 
with a certification as to the amount of the incentive pay12 
ment to be transferred to the State account pursuant to 
13 
that finding. The Secretary of the Treasury shall make 
14 
the appropriate transfer within 7 days after receiving such 
15 
certification. 
16 
‘‘(ii) For purposes of clause (i), State law provisions 
17 
which are to take effect within 12 months after the date 
18 
of their certification under this subparagraph shall be con19 
sidered to be in effect as of the date of such certification. 
20 
‘‘(C)(i) No certification of compliance with the re21 
quirements of paragraph (2) or (3) may be made with re22 
spect to any State whose State law is not otherwise eligible 
23 
for certification under section 303 or approvable under 
24 
section 3304 of the Federal Unemployment Tax Act. 

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351 

1 


‘‘(ii) No certification of compliance with the require2 
ments of paragraph (3) may be made with respect to any 
3 
State whose State law is not in compliance with the re4 
quirements of paragraph (2). 
5 


‘‘(iii) No application under subparagraph (A) may be 
6 
considered if submitted before the date of the enactment 
7 
of this subsection or after the latest date necessary (as 
8 
specified by the Secretary of Labor) to ensure that all in9 
centive payments under this subsection are made before 
10 
October 1, 2011. 
11 
‘‘(5)(A) Except as provided in subparagraph (B), any 
12 
amount transferred to the account of a State under this 
13 
subsection may be used by such State only in the payment 
14 
of cash benefits to individuals with respect to their unem15 
ployment (including for dependents’ allowances and for 
16 
unemployment compensation under paragraph (3)(C)), ex17 
clusive of expenses of administration. 
18 
‘‘(B) A State may, subject to the same conditions as 
19 
set forth in subsection (c)(2) (excluding subparagraph (B) 
20 
thereof, and deeming the reference to ‘subsections (a) and 
21 
(b)’ in subparagraph (D) thereof to include this sub22 
section), use any amount transferred to the account of 
23 
such State under this subsection for the administration 
24 
of its unemployment compensation law and public employ25 
ment offices. 

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1 


‘‘(6) Out of any money in the Federal unemployment 
2 
account not otherwise appropriated, the Secretary of the 
3 
Treasury shall reserve $7,000,000,000 for incentive pay4 
ments under this subsection. Any amount so reserved shall 
5 
not be taken into account for purposes of any determina6 
tion under section 902, 910, or 1203 of the amount in 
7 
the Federal unemployment account as of any given time. 
8 
Any amount so reserved for which the Secretary of the 
9 
Treasury has not received a certification under paragraph 
10 
(4)(B) by the deadline described in paragraph (4)(C)(iii) 
11 
shall, upon the close of fiscal year 2011, become unre12 
stricted as to use as part of the Federal unemployment 
13 
account. 
14 
‘‘(7) For purposes of this subsection, the terms ‘ben15 
efit year’, ‘base period’, and ‘week’ have the respective 
16 
meanings given such terms under section 205 of the Fed17 
eral-State Extended Unemployment Compensation Act of 
18 
1970 (26 U.S.C. 3304 note). 
19 
‘‘Special Transfer in Fiscal Year 2009 for Administration 
20 
‘‘(g)(1) In addition to any other amounts, the Sec21 
retary of the Treasury shall transfer from the employment 
22 
security administration account to the account of each 
23 
State in the Unemployment Trust Fund, within 30 days 
24 
after the date of the enactment of this subsection, the 

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353 
1 
amount determined with respect to such State under para2 
graph (2). 
3 


‘‘(2) The amount to be transferred under this sub4 
section to a State account shall (as determined by the Sec5 
retary of Labor and certified by such Secretary to the Sec6 
retary of the Treasury) be equal to the amount obtained 
7 
by multiplying $500,000,000 by the same ratio as deter8 
mined under subsection (f)(1)(B) with respect to such 
9 
State. 
10 
‘‘(3) Any amount transferred to the account of a 
11 
State as a result of the enactment of this subsection may 
12 
be used by the State agency of such State only in the pay13 
ment of expenses incurred by it for— 
14 
‘‘(A) the administration of the provisions of its 
15 
State law carrying out the purposes of subsection 
16 
(f)(2) or any subparagraph of subsection (f)(3); 
17 
‘‘(B) improved outreach to individuals who 
18 
might be eligible for regular unemployment com19 
pensation by virtue of any provisions of the State 
20 
law which are described in subparagraph (A); 
21 


‘‘(C) the improvement of unemployment benefit 

22 


and unemployment tax operations, including re


23 


sponding to increased demand for unemployment 

24 


compensation; and 

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354 

1 


‘‘(D) staff-assisted reemployment services for 

2 


unemployment compensation claimants.’’. 

3 


(b) REGULATIONS.—The Secretary of Labor may 
4 
prescribe any regulations, operating instructions, or other 
5 
guidance necessary to carry out the amendment made by 
6 
subsection (a). 
7 
Subtitle B—Assistance for 
8 
Vulnerable Individuals 
9 
SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM. 
10 
(a) IN GENERAL.—Section 403 of the Social Security 
11 
Act (42 U.S.C. 603) is amended by adding at the end the 
12 
following: 
13 
‘‘(c) EMERGENCY FUND.— 
14 
‘‘(1) ESTABLISHMENT.—There is established in 
15 
the Treasury of the United States a fund which 
16 
shall be known as the ‘Emergency Contingency 
17 
Fund for State Temporary Assistance for Needy 
18 
Families Programs’ (in this subsection referred to as 
19 
the ‘Emergency Fund’). 
20 
‘‘(2) DEPOSITS INTO FUND.—Out of any money 
21 


in the Treasury of the United States not otherwise 

22 


appropriated, there are appropriated such sums as 

23 


are necessary for payment to the Emergency Fund. 

24 


‘‘(3) GRANTS.— 

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1 


‘‘(A) GRANT RELATED TO CASELOAD IN


2 


CREASES.— 

3 


‘‘(i) IN GENERAL.—For each calendar 

4 


quarter in fiscal year 2009 or 2010, the 

5 


Secretary shall make a grant from the 
6 
Emergency Fund to each State that— 
7 
‘‘(I) requests a grant under this 
8 
subparagraph for the quarter; and 
9 
‘‘(II) meets the requirement of 
10 
clause (ii) for the quarter. 
11 
‘‘(ii) CASELOAD INCREASE REQUIRE12 
MENT.—A State meets the requirement of 
13 
this clause for a quarter if the average 
14 
monthly assistance caseload of the State 
15 
for the quarter exceeds the average month16 
ly assistance caseload of the State for the 
17 
corresponding quarter in the emergency 
18 
fund base year of the State. 
19 
‘‘(iii) AMOUNT OF GRANT.—Subject to 
20 
paragraph (5), the amount of the grant to 
21 


be made to a State under this subpara


22 


graph for a quarter shall be 80 percent of 

23 


the amount (if any) by which the total ex


24 


penditures of the State for basic assistance 

25 


(as defined by the Secretary) in the quar


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356 

1 


ter, whether under the State program 

2 


funded under this part or as qualified 

3 


State expenditures, exceeds the total ex


4 


penditures of the State for such assistance 

5 


for the corresponding quarter in the emer6 
gency fund base year of the State. 
7 
‘‘(B) GRANT RELATED TO INCREASED EX8 
PENDITURES FOR NON-RECURRENT SHORT 
9 
TERM BENEFITS.— 
10 
‘‘(i) IN GENERAL.—For each calendar 
11 
quarter in fiscal year 2009 or 2010, the 
12 
Secretary shall make a grant from the 
13 
Emergency Fund to each State that— 
14 
‘‘(I) requests a grant under this 
15 
subparagraph for the quarter; and 
16 
‘‘(II) meets the requirement of 
17 
clause (ii) for the quarter. 
18 
‘‘(ii) NON-RECURRENT SHORT TERM 
19 
EXPENDITURE REQUIREMENT.—A State 
20 
meets the requirement of this clause for a 
21 


quarter if the total expenditures of the 

22 


State for non-recurrent short term benefits 

23 


in the quarter, whether under the State 

24 


program funded under this part or as 

25 


qualified State expenditures, exceeds the 

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357 

1 


total such expenditures of the State for 

2 


non-recurrent short term benefits in the 

3 


corresponding quarter in the emergency 

4 


fund base year of the State. 

5 


‘‘(iii) AMOUNT OF GRANT.—Subject to 
6 
paragraph (5), the amount of the grant to 
7 
be made to a State under this subpara8 
graph for a quarter shall be an amount 
9 
equal to 80 percent of the excess described 
10 
in clause (ii). 
11 
‘‘(C) GRANT RELATED TO INCREASED EX12 
PENDITURES FOR SUBSIDIZED EMPLOYMENT.— 
13 
‘‘(i) IN GENERAL.—For each calendar 
14 
quarter in fiscal year 2009 or 2010, the 
15 
Secretary shall make a grant from the 
16 
Emergency Fund to each State that— 
17 
‘‘(I) requests a grant under this 
18 
subparagraph for the quarter; and 
19 
‘‘(II) meets the requirement of 
20 
clause (ii) for the quarter. 
21 
‘‘(ii) SUBSIDIZED EMPLOYMENT EX22 
PENDITURE REQUIREMENT.—A State 
23 


meets the requirement of this clause for a 

24 


quarter if the total expenditures of the 

25 


State for subsidized employment in the 

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1 


quarter, whether under the State program 

2 


funded under this part or as qualified 

3 


State expenditures, exceeds the total of 

4 


such expenditures of the State in the cor


5 


responding quarter in the emergency fund 
6 
base year of the State. 
7 
‘‘(iii) AMOUNT OF GRANT.—Subject to 
8 
paragraph (5), the amount of the grant to 
9 
be made to a State under this subpara10 
graph for a quarter shall be an amount 
11 
equal to 80 percent of the excess described 
12 
in clause (ii). 
13 
‘‘(4) AUTHORITY TO MAKE NECESSARY ADJUST14 
MENTS TO DATA AND COLLECT NEEDED DATA.—In 
15 
determining the size of the caseload of a State and 
16 
the expenditures of a State for basic assistance, non17 
recurrent short-term benefits, and subsidized em18 
ployment, during any period for which the State re19 
quests funds under this subsection, and during the 
20 
emergency fund base year of the State, the Sec21 


retary may make appropriate adjustments to the 

22 


data to ensure that the data reflect expenditures 

23 


under the State program funded under this part and 

24 


qualified State expenditures. The Secretary may de


25 


velop a mechanism for collecting expenditure data, 

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359 

1 


including procedures which allow States to make 

2 


reasonable estimates, and may set deadlines for 

3 


making revisions to the data. 

4 


‘‘(5) LIMITATION.—The total amount payable 

5 


to a single State under subsection (b) and this sub6 
section for a fiscal year shall not exceed 25 percent 
7 
of the State family assistance grant. 
8 
‘‘(6) LIMITATIONS ON USE OF FUNDS.—A State 
9 
to which an amount is paid under this subsection 
10 
may use the amount only as authorized by section 
11 
404. 
12 
‘‘(7) TIMING OF IMPLEMENTATION.—The Sec13 
retary shall implement this subsection as quickly as 
14 
reasonably possible, pursuant to appropriate guid15 
ance to States. 
16 
‘‘(8) DEFINITIONS.—In this subsection: 
17 
‘‘(A) AVERAGE MONTHLY ASSISTANCE 
18 
CASELOAD.—The term ‘average monthly assist19 
ance caseload’ means, with respect to a State 
20 
and a quarter, the number of families receiving 
21 


assistance during the quarter under the State 

22 


program funded under this part or as qualified 

23 


State expenditures, subject to adjustment under 

24 


paragraph (4). 

25 


‘‘(B) EMERGENCY FUND BASE YEAR.— 

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1 


‘‘(i) IN GENERAL.—The term ‘emer


2 


gency fund base year’ means, with respect 

3 


to a State and a category described in 

4 


clause (ii), whichever of fiscal year 2007 or 

5 


2008 is the fiscal year in which the 
6 
amount described by the category with re7 
spect to the State is the lesser. 
8 
‘‘(ii) CATEGORIES DESCRIBED.—The 
9 
categories described in this clause are the 
10 
following: 
11 
‘‘(I) The average monthly assist12 
ance caseload of the State. 
13 
‘‘(II) The total expenditures of 
14 
the State for non-recurrent short term 
15 
benefits, whether under the State pro16 
gram funded under this part or as 
17 
qualified State expenditures. 
18 
‘‘(III) The total expenditures of 
19 
the State for subsidized employment, 
20 
whether under the State program 
21 


funded under this part or as qualified 

22 


State expenditures. 

23 


‘‘(C) QUALIFIED STATE EXPENDITURES.— 

24 


The term ‘qualified State expenditures’ has the 

25 


meaning given the term in section 409(a)(7).’’. 

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1 


(b) TEMPORARY MODIFICATION OF CASELOAD RE2 
DUCTION CREDIT.—Section 407(b)(3)(A)(i) of such Act 
3 
(42 U.S.C. 607(b)(3)(A)(i)) is amended by inserting ‘‘(or 
4 
if the immediately preceding fiscal year is fiscal year 2009 
5 
or 2010, then, at State option, during the emergency fund 
6 
base year of the State with respect to the average monthly 
7 
assistance caseload of the State (within the meaning of 
8 
section 403(c)(8)(B)))’’ before ‘‘under the State’’. 
9 
(c) EFFECTIVE DATE.—The amendments made by 
10 
this section shall take effect on the date of the enactment 
11 
of this Act. 
12 
SEC. 2102. ONE-TIME EMERGENCY PAYMENT TO SSI RECIPI13 
ENTS. 
14 
(a) PAYMENT AUTHORITY.— 
15 
(1) IN GENERAL.—At the earliest practicable 
16 
date in calendar year 2009 but not later than 120 
17 
days after the date of the enactment of this section, 
18 
the Commissioner of Social Security shall make a 
19 
one-time payment to each individual who is deter20 
mined by the Commissioner in calendar year 2009 to 
21 


be an individual who— 

22 


(A) is entitled to a cash benefit under the 

23 


supplemental security income program under 

24 


title XVI of the Social Security Act (other than 

25 


pursuant to section 1611(e)(1)(B) of such Act) 

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1 


for at least 1 day in the calendar month in 

2 


which the first payment under this section is to 

3 


be made; or 

4 


(B)(i) was entitled to such a cash benefit 

5 


(other than pursuant to section 1611(e)(1)(B) 
6 
of such Act) for at least 1 day in the 2-month 
7 
period preceding that calendar month; and 
8 
(ii) whose entitlement to that benefit 
9 
ceased in that 2-month period solely because 
10 
the income of the individual (and the income of 
11 
the spouse, if any, of the individual) exceeded 
12 
the applicable income limit described in para13 
graph (1)(A) or (2)(A) of section 1611(a) of 
14 
such Act. 
15 
(2) AMOUNT OF PAYMENT.—Subject to sub16 
section (b)(1) of this section, the amount of the pay17 
ment shall be— 
18 
(A) in the case of an individual eligible for 
19 
a payment under this section who does not have 
20 
a spouse eligible for such a payment, an 
21 


amount equal to the average of the cash bene


22 


fits payable in the aggregate under section 

23 


1611 or 1619(a) of the Social Security Act to 

24 


eligible individuals who do not have an eligible 

25 


spouse, for the most recent month for which 

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363 

1 


data on payment of the benefits are available, 

2 


as determined by the Commissioner of Social 

3 


Security; or 

4 


(B) in the case of an individual eligible for 

5 


a payment under this section who has a spouse 
6 
eligible for such a payment, an amount equal to 
7 
the average of the cash benefits payable in the 
8 
aggregate under section 1611 or 1619(a) of the 
9 
Social Security Act to eligible individuals who 
10 
have an eligible spouse, for the most recent 
11 
month for which data on payment of the bene12 
fits are available, as so determined. 
13 
(b) ADMINISTRATIVE PROVISIONS.— 
14 
(1) AUTHORITY TO WITHHOLD PAYMENT TO 
15 
RECOVER PRIOR OVERPAYMENT OF SSI BENEFITS.— 
16 
The Commissioner of Social Security may withhold 
17 
part or all of a payment otherwise required to be 
18 
made under subsection (a) of this section to an indi19 
vidual, in order to recover a prior overpayment of 
20 
benefits to the individual under the supplemental se21 


curity income program under title XVI of the Social 

22 


Security Act, subject to the limitations of section 

23 


1631(b) of such Act. 

24 


(2) PAYMENT TO BE DISREGARDED IN DETER


25 


MINING UNDERPAYMENTS UNDER THE SSI PRO-

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1 


GRAM.—A payment under subsection (a) shall be 

2 


disregarded in determining whether there has been 

3 


an underpayment of benefits under the supplemental 

4 


security income program under title XVI of the So


5 


cial Security Act. 
6 
(3) NONASSIGNMENT.—The provisions of sec7 
tion 1631(d) of the Social Security Act shall apply 
8 
with respect to payments under this section to the 
9 
same extent as they apply in the case of title XVI 
10 
of such Act. 
11 
(c) PAYMENTS TO BE DISREGARDED FOR PURPOSES 
12 
OF ALL FEDERAL AND FEDERALLY ASSISTED PRO13 
GRAMS.—A payment under subsection (a) shall not be re14 
garded as income to the recipient, and shall not be re15 
garded as a resource of the recipient for the month of re16 
ceipt and the following 6 months, for purposes of deter17 
mining the eligibility of any individual for benefits or as18 
sistance, or the amount or extent of benefits or assistance, 
19 
under any Federal program or under any State or local 
20 
program financed in whole or in part with Federal funds. 
21 


(d) APPROPRIATION.—Out of any sums in the Treas22 
ury of the United States not otherwise appropriated, there 
23 
are appropriated such sums as may be necessary to carry 
24 
out this section. 

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365 

1 
SEC. 2103. TEMPORARY RESUMPTION OF PRIOR CHILD 
2 


SUPPORT LAW. 

3 


During the period that begins with October 1, 2008, 
4 
and ends with September 30, 2010, section 455(a)(1) of 
5 
the Social Security Act shall be applied and administered 
6 
as if the phrase ‘‘from amounts paid to the State under 
7 
section 458 or’’ did not appear in such section. 
8 
TITLE III—HEALTH INSURANCE 
9 
ASSISTANCE FOR THE UNEM10 
PLOYED 
11 
SEC. 3001. SHORT TITLE AND TABLE OF CONTENTS OF 
12 
TITLE. 
13 
(a) SHORT TITLE OF TITLE.—This title may be cited 
14 
as the ‘‘Health Insurance Assistance for the Unemployed 
15 
Act of 2009’’. 
16 
(b) TABLE OF CONTENTS OF TITLE.—The table of 
17 
contents of this title is as follows: 

Sec. 3001. Short title and table of contents of title. 
Sec. 3002. Premium assistance for COBRA benefits and extension of COBRA 
benefits for older or long-term employees. 
Sec. 3003. Temporary optional Medicaid coverage for the unemployed. 

18 
SEC. 3002. PREMIUM ASSISTANCE FOR COBRA BENEFITS 
19 


AND EXTENSION OF COBRA BENEFITS FOR 

20 


OLDER OR LONG-TERM EMPLOYEES. 

21 


(a) PREMIUM ASSISTANCE FOR COBRA CONTINU22 
ATION COVERAGE FOR INDIVIDUALS AND THEIR FAMI23 
LIES.— 

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1 


(1) PROVISION OF PREMIUM ASSISTANCE.— 
2 
(A) REDUCTION OF PREMIUMS PAY3 


ABLE.—In the case of any premium for a pe


4 


riod of coverage beginning on or after the date 

5 


of the enactment of this Act for COBRA con6 
tinuation coverage with respect to any assist7 
ance eligible individual, such individual shall be 
8 
treated for purposes of any COBRA continu9 
ation provision as having paid the amount of 
10 
such premium if such individual pays 35 per11 
cent of the amount of such premium (as deter12 
mined without regard to this subsection). 
13 
(B) PREMIUM REIMBURSEMENT.—For pro14 
visions providing the balance of such premium, 
15 
see section 6431 of the Internal Revenue Code 
16 
of 1986, as added by paragraph (12). 
17 
(2) LIMITATION OF PERIOD OF PREMIUM AS18 
SISTANCE.— 
19 
(A) IN GENERAL.—Paragraph (1)(A) shall 
20 
not apply with respect to any assistance eligible 
21 


individual for months of coverage beginning on 

22 


or after the earlier of— 

23 


(i) the first date that such individual 

24 


is eligible for coverage under any other 

25 


group health plan (other than coverage 

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367 

1 


consisting of only dental, vision, coun


2 


seling, or referral services (or a combina


3 


tion thereof), coverage under a health re4 
imbursement arrangement or a health 
5 


flexible spending arrangement, or coverage 
6 
of treatment that is furnished in an on-site 
7 
medical facility maintained by the em8 
ployer and that consists primarily of first9 
aid services, prevention and wellness care, 
10 
or similar care (or a combination thereof)) 
11 
or is eligible for benefits under title XVIII 
12 
of the Social Security Act, or 
13 
(ii) the earliest of— 
14 
(I) the date which is 12 months 
15 
after the first day of the first month 
16 
that paragraph (1)(A) applies with re17 
spect to such individual, 
18 
(II) the date following the expira19 
tion of the maximum period of con20 
tinuation coverage required under the 
21 


applicable COBRA continuation cov


22 


erage provision, or 

23 


(III) the date following the expi


24 


ration of the period of continuation 

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1 


coverage allowed under paragraph 

2 


(4)(B)(ii). 
3 
(B) TIMING OF ELIGIBILITY FOR ADDI4 


TIONAL COVERAGE.—For purposes of subpara


5 


graph (A)(i), an individual shall not be treated 
6 
as eligible for coverage under a group health 
7 
plan before the first date on which such indi8 
vidual could be covered under such plan. 
9 
(C) NOTIFICATION REQUIREMENT.—An 
10 
assistance eligible individual shall notify in writ11 
ing the group health plan with respect to which 
12 
paragraph (1)(A) applies if such paragraph 
13 
ceases to apply by reason of subparagraph 
14 
(A)(i). Such notice shall be provided to the 
15 
group health plan in such time and manner as 
16 
may be specified by the Secretary of Labor. 
17 
(3) ASSISTANCE ELIGIBLE INDIVIDUAL.—For 
18 
purposes of this section, the term ‘‘assistance eligible 
19 
individual’’ means any qualified beneficiary if— 
20 
(A) at any time during the period that be21 


gins with September 1, 2008, and ends with 

22 


December 31, 2009, such qualified beneficiary 

23 


is eligible for COBRA continuation coverage, 

24 


(B) such qualified beneficiary elects such 

25 


coverage, and 

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369 


1 


(C) the qualifying event with respect to the 

2 


COBRA continuation coverage consists of the 

3 


involuntary termination of the covered employ


4 


ee’s employment and occurred during such pe5 
riod. 
6 
(4) EXTENSION OF ELECTION PERIOD AND EF7 
FECT ON COVERAGE.— 
8 
(A) IN GENERAL.—Notwithstanding sec9 
tion 605(a) of the Employee Retirement Income 
10 
Security Act of 1974, section 4980B(f)(5)(A) of 
11 
the Internal Revenue Code of 1986, section 
12 
2205(a) of the Public Health Service Act, and 
13 
section 8905a(c)(2) of title 5, United States 
14 
Code, in the case of an individual who is a 
15 
qualified beneficiary described in paragraph 
16 
(3)(A) as of the date of the enactment of this 
17 
Act and has not made the election referred to 
18 
in paragraph (3)(B) as of such date, such indi19 
vidual may elect the COBRA continuation cov20 
erage under the COBRA continuation coverage 
21 


provisions containing such sections during the 

22 


60-day period commencing with the date on 

23 


which the notification required under paragraph 

24 


(7)(C) is provided to such individual. 

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370 

1 


(B) COMMENCEMENT OF COVERAGE; NO 

2 


REACH-BACK.—Any COBRA continuation cov


3 


erage elected by a qualified beneficiary during 

4 


an extended election period under subparagraph 

5 


(A)— 
6 
(i) shall commence on the date of the 
7 
enactment of this Act, and 
8 
(ii) shall not extend beyond the period 
9 
of COBRA continuation coverage that 
10 
would have been required under the appli11 
cable COBRA continuation coverage provi12 
sion if the coverage had been elected as re13 
quired under such provision. 
14 
(C) PREEXISTING CONDITIONS.—With re15 
spect to a qualified beneficiary who elects 
16 
COBRA continuation coverage pursuant to sub17 
paragraph (A), the period— 
18 
(i) beginning on the date of the quali19 
fying event, and 
20 
(ii) ending with the day before the 
21 


date of the enactment of this Act, 

22 


shall be disregarded for purposes of deter


23 


mining the 63-day periods referred to in section 

24 


701)(2) of the Employee Retirement Income 

25 


Security Act of 1974, section 9801(c)(2) of the 

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1 


Internal Revenue Code of 1986, and section 

2 


2701(c)(2) of the Public Health Service Act. 

3 


(5) EXPEDITED REVIEW OF DENIALS OF PRE


4 


MIUM ASSISTANCE.—In any case in which an indi


5 


vidual requests treatment as an assistance eligible 
6 
individual and is denied such treatment by the group 
7 
health plan by reason of such individual’s ineligi8 
bility for COBRA continuation coverage, the Sec9 
retary of Labor (or the Secretary of Health and 
10 
Human services in connection with COBRA continu11 
ation coverage which is provided other than pursu12 
ant to part 6 of subtitle B of title I of the Employee 
13 
Retirement Income Security Act of 1974), in con14 
sultation with the Secretary of the Treasury, shall 
15 
provide for expedited review of such denial. An indi16 
vidual shall be entitled to such review upon applica17 
tion to such Secretary in such form and manner as 
18 
shall be provided by such Secretary. Such Secretary 
19 
shall make a determination regarding such individ20 
ual’s eligibility within 10 business days after receipt 
21 


of such individual’s application for review under this 

22 


paragraph. 
23 
(6) DISREGARD OF SUBSIDIES FOR PURPOSES 
24 
OF FEDERAL AND STATE PROGRAMS.—Notwith25 


standing any other provision of law, any premium 

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372 


1 


reduction with respect to an assistance eligible indi


2 


vidual under this subsection shall not be considered 

3 


income or resources in determining eligibility for, or 

4 


the amount of assistance or benefits provided under, 

5 


any other public benefit provided under Federal law 
6 
or the law of any State or political subdivision there7 
of. 
8 
(7) NOTICES TO INDIVIDUALS.— 
9 
(A) GENERAL NOTICE.— 
10 
(i) IN GENERAL.—In the case of no11 
tices provided under section 606(4) of the 
12 
Employee Retirement Income Security Act 
13 
of 1974 (29 U.S.C. 1166(4)), section 
14 
4980B(f)(6)(D) of the Internal Revenue 
15 
Code of 1986, section 2206(4) of the Pub16 
lic Health Service Act (42 U.S.C. 300bb17 
6(4)), or section 8905a(f)(2)(A) of title 5, 
18 
United States Code, with respect to indi19 
viduals who, during the period described in 
20 
paragraph (3)(A), become entitled to elect 
21 


COBRA continuation coverage, such no


22 


tices shall include an additional notifica


23 


tion to the recipient of the availability of 

24 


premium reduction with respect to such 

25 


coverage under this subsection. 

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1 


(ii) ALTERNATIVE NOTICE.—In the 

2 


case of COBRA continuation coverage to 

3 


which the notice provision under such sec


4 


tions does not apply, the Secretary of 

5 


Labor, in consultation with the Secretary 
6 
of the Treasury and the Secretary of 
7 
Health and Human Services, shall, in co8 
ordination with administrators of the 
9 
group health plans (or other entities) that 
10 
provide or administer the COBRA continu11 
ation coverage involved, provide rules re12 
quiring the provision of such notice. 
13 
(iii) FORM.—The requirement of the 
14 
additional notification under this subpara15 
graph may be met by amendment of exist16 
ing notice forms or by inclusion of a sepa17 
rate document with the notice otherwise 
18 
required. 
19 
(B) SPECIFIC REQUIREMENTS.—Each ad20 
ditional notification under subparagraph (A) 
21 


shall include— 

22 


(i) the forms necessary for estab


23 


lishing eligibility for premium reduction 

24 


under this subsection, 

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374 

1 


(ii) the name, address, and telephone 

2 


number necessary to contact the plan ad


3 


ministrator and any other person main


4 


taining relevant information in connection 

5 


with such premium reduction, 
6 
(iii) a description of the extended elec7 
tion period provided for in paragraph 
8 
(4)(A), 
9 
(iv) a description of the obligation of 
10 
the qualified beneficiary under paragraph 
11 
(2)(C) to notify the plan providing continu12 
ation coverage of eligibility for subsequent 
13 
coverage under another group health plan 
14 
or eligibility for benefits under title XVIII 
15 
of the Social Security Act and the penalty 
16 
provided for failure to so notify the plan, 
17 
and 
18 
(v) a description, displayed in a 
19 
prominent manner, of the qualified bene20 
ficiary’s right to a reduced premium and 
21 


any conditions on entitlement to the re


22 


duced premium. 

23 


(C) NOTICE RELATING TO RETROACTIVE 

24 


COVERAGE.—In the case of an individual de


25 


scribed in paragraph (3)(A) who has elected 

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375 

1 


COBRA continuation coverage as of the date of 

2 


enactment of this Act or an individual described 

3 


in paragraph (4)(A), the administrator of the 

4 


group health plan (or other entity) involved 

5 


shall provide (within 60 days after the date of 
6 
enactment of this Act) for the additional notifi7 
cation required to be provided under subpara8 
graph (A). 
9 
(D) MODEL NOTICES.—Not later than 30 
10 
days after the date of enactment of this Act, 
11 
the Secretary of the Labor, in consultation with 
12 
the Secretary of the Treasury and the Secretary 
13 
of Health and Human Services, shall prescribe 
14 
models for the additional notification required 
15 
under this paragraph. 
16 
(8) SAFEGUARDS.—The Secretary of the Treas17 
ury shall provide such rules, procedures, regulations, 
18 
and other guidance as may be necessary and appro19 
priate to prevent fraud and abuse under this sub20 
section. 
21 


(9) OUTREACH.—The Secretary of Labor, in 

22 


consultation with the Secretary of the Treasury and 

23 


the Secretary of Health and Human Services, shall 

24 


provide outreach consisting of public education and 

25 


enrollment assistance relating to premium reduction 

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376 

1 


provided under this subsection. Such outreach shall 

2 


target employers, group health plan administrators, 

3 


public assistance programs, States, insurers, and 

4 


other entities as determined appropriate by such 

5 


Secretaries. Such outreach shall include an initial 
6 
focus on those individuals electing continuation cov7 
erage who are referred to in paragraph (7)(C). In8 
formation on such premium reduction, including en9 
rollment, shall also be made available on website of 
10 
the Departments of Labor, Treasury, and Health 
11 
and Human Services. 
12 
(10) DEFINITIONS.—For purposes of this sub13 
section— 
14 
(A) ADMINISTRATOR.—The term ‘‘admin15 
istrator’’ has the meaning given such term in 
16 
section 3(16) of the Employee Retirement In17 
come Security Act of 1974. 
18 
(B) COBRA CONTINUATION COVERAGE.— 
19 
The term ‘‘COBRA continuation coverage’’ 
20 
means continuation coverage provided pursuant 
21 


to part 6 of subtitle B of title I of the Em


22 


ployee Retirement Income Security Act of 1974 

23 


(other than under section 609), title XXII of 

24 


the Public Health Service Act, section 4980B of 

25 


the Internal Revenue Code of 1986 (other than 

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377 

1 


subsection (f)(1) of such section insofar as it 

2 


relates to pediatric vaccines), or section 8905a 

3 


of title 5, United States Code, or under a State 

4 


program that provides continuation coverage 

5 


comparable to such continuation coverage. Such 
6 
term does not include coverage under a health 
7 
flexible spending arrangement. 
8 
(C) COBRA CONTINUATION PROVISION.— 
9 
The term ‘‘COBRA continuation provision’’ 
10 
means the provisions of law described in sub11 
paragraph (B). 
12 
(D) COVERED EMPLOYEE.—The term 
13 
‘‘covered employee’’ has the meaning given such 
14 
term in section 607(2) of the Employee Retire15 
ment Income Security Act of 1974. 
16 
(E) QUALIFIED BENEFICIARY.—The term 
17 
‘‘qualified beneficiary’’ has the meaning given 
18 
such term in section 607(3) of the Employee 
19 
Retirement Income Security Act of 1974. 
20 
(F) GROUP HEALTH PLAN.—The term 
21 


‘‘group health plan’’ has the meaning given 

22 


such term in section 607(1) of the Employee 

23 


Retirement Income Security Act of 1974. 

24 


(G) STATE.—The term ‘‘State’’ includes 

25 


the District of Columbia, the Commonwealth of 

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378 

1 


Puerto Rico, the Virgin Islands, Guam, Amer


2 


ican Samoa, and the Commonwealth of the 

3 


Northern Mariana Islands. 

4 


(11) REPORTS.— 

5 


(A) INTERIM REPORT.—The Secretary of 
6 
the Treasury shall submit an interim report to 
7 
the Committee on Education and Labor, the 
8 
Committee on Ways and Means, and the Com9 
mittee on Energy and Commerce of the House 
10 
of Representatives and the Committee on 
11 
Health, Education, Labor, and Pensions and 
12 
the Committee on Finance of the Senate re13 
garding the premium reduction provided under 
14 
this subsection that includes— 
15 
(i) the number of individuals provided 
16 
such assistance as of the date of the re17 
port; and 
18 
(ii) the total amount of expenditures 
19 
incurred (with administrative expenditures 
20 
noted separately) in connection with such 
21 


assistance as of the date of the report. 

22 


(B) FINAL REPORT.—As soon as prac


23 


ticable after the last period of COBRA continu


24 


ation coverage for which premium reduction is 

25 


provided under this section, the Secretary of the 

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379 

1 


Treasury shall submit a final report to each 

2 


Committee referred to in subparagraph (A) that 

3 


includes— 

4 


(i) the number of individuals provided 

5 


premium reduction under this section; 
6 
(ii) the average dollar amount 
7 
(monthly and annually) of premium reduc8 
tions provided to such individuals; and 
9 
(iii) the total amount of expenditures 
10 
incurred (with administrative expenditures 
11 
noted separately) in connection with pre12 
mium reduction under this section. 
13 
(12) COBRA PREMIUM ASSISTANCE.— 
14 
(A) IN GENERAL.—Subchapter B of chap15 
ter 65 of the Internal Revenue Code of 1986 is 
16 
amended by adding at the end the following 
17 
new section: 
18 
‘‘SEC. 6431. COBRA PREMIUM ASSISTANCE. 
19 
‘‘(a) IN GENERAL.—The entity to whom premiums 
20 
are payable under COBRA continuation coverage shall be 
21 
reimbursed for the amount of premiums not paid by plan 
22 
beneficiaries by reason of section 3002(a) of the Health 
23 
Insurance Assistance for the Unemployed Act of 2009. 
24 
Such amount shall be treated as a credit against the re25 
quirement of such entity to make deposits of payroll taxes 

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380 
1 
and the liability of such entity for payroll taxes. To the 
2 
extent that such amount exceeds the amount of such 
3 
taxes, the Secretary shall pay to such entity the amount 
4 
of such excess. No payment may be made under this sub5 
section to an entity with respect to any assistance eligible 
6 
individual until after such entity has received the reduced 
7 
premium from such individual required under section 
8 
3002(a)(1)(A) of such Act. 
9 
‘‘(b) PAYROLL TAXES.—For purposes of this section, 
10 
the term ‘payroll taxes’ means— 
11 
‘‘(1) amounts required to be deducted and with12 
held for the payroll period under section 3401 (relat13 
ing to wage withholding), 
14 
‘‘(2) amounts required to be deducted for the 
15 
payroll period under section 3102 (relating to FICA 
16 
employee taxes), and 
17 
‘‘(3) amounts of the taxes imposed for the pay18 
roll period under section 3111 (relating to FICA em19 
ployer taxes). 
20 
‘‘(c) TREATMENT OF CREDIT.—Except as otherwise 
21 
provided by the Secretary, the credit described in sub22 
section (a) shall be applied as though the employer had 
23 
paid to the Secretary, on the day that the qualified bene24 
ficiary’s premium payment is received, an amount equal 
25 
to such credit. 

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381 
1 
‘‘(d) TREATMENT OF PAYMENT.—For purposes of 
2 
section 1324(b)(2) of title 31, United States Code, any 
3 
payment under this section shall be treated in the same 
4 
manner as a refund of the credit under section 35. 
5 


‘‘(e) REPORTING.— 
6 
‘‘(1) IN GENERAL.—Each entity entitled to re7 
imbursement under subsection (a) for any period 
8 
shall submit such reports as the Secretary may re9 
quire, including— 
10 
‘‘(A) an attestation of involuntary termi11 
nation of employment for each covered em12 
ployee on the basis of whose termination entitle13 
ment to reimbursement is claimed under sub14 
section (a), and 
15 
‘‘(B) a report of the amount of payroll 
16 
taxes offset under subsection (a) for the report17 
ing period and the estimated offsets of such 
18 
taxes for the subsequent reporting period in 
19 
connection with reimbursements under sub20 
section (a). 
21 


‘‘(2) TIMING OF REPORTS RELATING TO 
22 
AMOUNT OF PAYROLL TAXES.—Reports required 
23 


under paragraph (1)(B) shall be submitted at the 

24 


same time as deposits of taxes imposed by chapters 

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382 

1 


21, 22, and 24 or at such time as is specified by the 

2 


Secretary. 

3 


‘‘(f) REGULATIONS.—The Secretary may issue such 
4 
regulations or other guidance as may be necessary or ap5 
propriate to carry out this section, including the require6 
ment to report information or the establishment of other 
7 
methods for verifying the correct amounts of payments 
8 
and credits under this section. The Secretary shall issue 
9 
such regulations or guidance with respect to the applica10 
tion of this section to group health plans that are multiem11 
ployer plans (as defined in section 3(37) of the Employee 
12 
Retirement Income Security Act of 1974).’’. 
13 
(B) SOCIAL SECURITY TRUST FUNDS HELD 
14 
HARMLESS.—In determining any amount trans15 
ferred or appropriated to any fund under the 
16 
Social Security Act, section 6431 of the Inter17 
nal Revenue Code of 1986 shall not be taken 
18 
into account. 
19 
(C) CLERICAL AMENDMENT.—The table of 
20 
sections for subchapter B of chapter 65 of the 
21 


Internal Revenue Code of 1986 is amended by 

22 


adding at the end the following new item: 

‘‘Sec. 6431. COBRA premium assistance.’’. 

23 


(D) EFFECTIVE DATE.—The amendments 

24 


made by this paragraph shall apply to pre


25 


miums to which subsection (a)(1)(A) applies. 

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383 


1 


(13) PENALTY FOR FAILURE TO NOTIFY 

2 


HEALTH PLAN OF CESSATION OF ELIGIBILITY FOR 

3 


PREMIUM ASSISTANCE.— 

4 


(A) IN GENERAL.—Part I of subchapter B 

5 


of chapter 68 of the Internal Revenue Code of 
6 
1986 is amended by adding at the end the fol7 
lowing new section: 
8 
‘‘SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH 
9 
PLAN OF CESSATION OF ELIGIBILITY FOR 
10 
COBRA PREMIUM ASSISTANCE. 
11 
‘‘(a) IN GENERAL.—Any person required to notify a 
12 
group health plan under section 3002(a)(2)(C)) of the 
13 
Health Insurance Assistance for the Unemployed Act of 
14 
2009 who fails to make such a notification at such time 
15 
and in such manner as the Secretary of Labor may require 
16 
shall pay a penalty of 110 percent of the premium reduc17 
tion provided under such section after termination of eligi18 
bility under such subsection. 
19 
‘‘(b) REASONABLE CAUSE EXCEPTION.—No penalty 
20 
shall be imposed under subsection (a) with respect to any 
21 
failure if it is shown that such failure is due to reasonable 
22 
cause and not to willful neglect.’’. 
23 


(B) CLERICAL AMENDMENT.—The table of 

24 


sections of part I of subchapter B of chapter 68 

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384 

1 


of such Code is amended by adding at the end 

2 


the following new item: 

‘‘Sec. 6720C. Penalty for failure to notify health plan of cessation of eligibility 
for COBRA premium assistance.’’. 

3 


(C) EFFECTIVE DATE.—The amendments 

4 


made by this paragraph shall apply to failures 
5 
occurring after the date of the enactment of 
6 
this Act. 
7 
(14) COORDINATION WITH HCTC.— 
8 
(A) IN GENERAL.—Subsection (g) of sec9 
tion 35 of the Internal Revenue Code of 1986 
10 
is amended by redesignating paragraph (9) as 
11 
paragraph (10) and inserting after paragraph 
12 
(8) the following new paragraph: 
13 
‘‘(9) COBRA PREMIUM ASSISTANCE.—In the 
14 
case of an assistance eligible individual who receives 
15 
premium reduction for COBRA continuation cov16 
erage under section 3002(a) of the Health Insurance 
17 
Assistance for the Unemployed Act of 2009 for any 
18 
month during the taxable year, such individual shall 
19 
not be treated as an eligible individual, a certified 
20 


individual, or a qualifying family member for pur


21 


poses of this section or section 7527 with respect to 

22 


such month.’’. 

23 


(B) EFFECTIVE DATE.—The amendment 

24 


made by subparagraph (A) shall apply to tax-

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385 

1 


able years ending after the date of the enact


2 


ment of this Act. 
3 
(15) EXCLUSION OF COBRA PREMIUM ASSIST4 


ANCE FROM GROSS INCOME.— 

5 


(A) IN GENERAL.—Part III of subchapter 
6 
B of chapter 1 of the Internal Revenue Code of 
7 
1986 is amended by inserting after section 
8 
139B the following new section: 
9 
‘‘SEC. 139C. COBRA PREMIUM ASSISTANCE. 
10 
‘‘In the case of an assistance eligible individual (as 
11 
defined in section 3002 of the Health Insurance Assist12 
ance for the Unemployed Act of 2009), gross income does 
13 
not include any premium reduction provided under sub14 
section (a) of such section.’’. 
15 
(B) CLERICAL AMENDMENT.—The table of 
16 
sections for part III of subchapter B of chapter 
17 
1 of such Code is amended by inserting after 
18 
the item relating to section 139B the following 
19 
new item: 

‘‘Sec. 139C. COBRA premium assistance.’’. 

20 


(C) EFFECTIVE DATE.—The amendments 

21 


made by this paragraph shall apply to taxable 

22 


years ending after the date of the enactment of 
23 
this Act. 
24 


(b) EXTENSION OF COBRA BENEFITS FOR OLDER 
25 
OR LONG-TERM EMPLOYEES.— 

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386 

1 


(1) ERISA AMENDMENT.—Section 602(2)(A) 

2 


of the Employee Retirement Income Security Act of 

3 


1974 is amended by adding at the end the following 

4 


new clauses: 

5 


‘‘(x) SPECIAL RULE FOR OLDER OR 
6 
LONG-TERM EMPLOYEES GENERALLY.—In 
7 
the case of a qualifying event described in 
8 
section 603(2) with respect to a covered 
9 
employee who (as of such qualifying event) 
10 
has attained age 55 or has completed 10 
11 
or more years of service with the entity 
12 
that is the employer at the time of the 
13 
qualifying event, clauses (i) and (ii) shall 
14 
not apply. For purposes of this clause, in 
15 
the case of a group health plan that is a 
16 
multiemployer plan, service by the covered 
17 
employee performed for 2 or more employ18 
ers during periods for which such employ19 
ers contributed to such plan shall be treat20 
ed as service performed for the entity re21 


ferred to in the preceding sentence. 
22 
‘‘(xi) YEAR OF SERVICE.— For pur23 


poses of this subparagraph, the term ‘year 

24 


of service’ shall have the meaning provided 

25 


in section 202(a)(3).’’. 

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387 


1 


(2) IRC AMENDMENT.—Clause (i) of section 

2 


4980B(f)(2)(B) of the Internal Revenue Code of 

3 


1986 is amended by adding at the end the following 

4 


new subclauses: 

5 


‘‘(X) SPECIAL RULE FOR OLDER 
6 
OR LONG-TERM EMPLOYEES GEN7 
ERALLY.—In the case of a qualifying 
8 
event described in paragraph (3)(B) 
9 
with respect to a covered employee 
10 
who (as of such qualifying event) has 
11 
attained age 55 or has completed 10 
12 
or more years of service with the enti13 
ty that is the employer at the time of 
14 
the qualifying event, subclauses (I) 
15 
and (II) shall not apply. For purposes 
16 
of this subclause, in the case of a 
17 
group health plan that is a multiem18 
ployer plan (as defined in section 
19 
3(37) of the Employee Retirement In20 
come Security Act of 1974), service by 
21 


the covered employee performed for 2 

22 


or more employers during periods for 

23 


which such employers contributed to 

24 


such plan shall be treated as service 

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388 

1 


performed for the entity referred to in 

2 


the preceding sentence. 
3 
‘‘(XI) YEAR OF SERVICE.— For 
4 


purposes of this clause, the term ‘year 

5 


of service’ shall have the meaning pro6 
vided in section 202(a)(3) of the Em7 
ployee Retirement Income Security 
8 
Act of 1974.’’. 
9 
(3) PHSA AMENDMENT.—Section 2202(2)(A) 
10 
of the Public Health Service Act is amended by add11 
ing at the end the following new clauses: 
12 
‘‘(viii) SPECIAL RULE FOR OLDER OR 
13 
LONG-TERM EMPLOYEES GENERALLY.—In 
14 
the case of a qualifying event described in 
15 
section 2203(2) with respect to a covered 
16 
employee who (as of such qualifying event) 
17 
has attained age 55 or has completed 10 
18 
or more years of service with the entity 
19 
that is the employer at the time of the 
20 
qualifying event, clauses (i) and (ii) shall 
21 


not apply. For purposes of this clause, in 

22 


the case of a group health plan that is a 

23 


multiemployer plan (as defined in section 

24 


3(37) of the Employee Retirement Income 

25 


Security Act of 1974), service by the cov


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389 

1 


ered employee performed for 2 or more 

2 


employers during periods for which such 

3 


employers contributed to such plan shall be 

4 


treated as service performed for the entity 

5 


referred to in the preceding sentence. 
6 
‘‘(ix) YEAR OF SERVICE.— For pur7 
poses of this subparagraph, the term ‘year 
8 
of service’ shall have the meaning provided 
9 
in section 202(a)(3) of the Employee Re10 
tirement Income Security Act of 1974.’’. 
11 
(4) EFFECTIVE DATE OF AMENDMENTS.—The 
12 
amendments made by this subsection shall apply to 
13 
periods of coverage which would (without regard to 
14 
the amendments made by this section) end on or 
15 
after the date of the enactment of this Act. 
16 
SEC. 3003. TEMPORARY OPTIONAL MEDICAID COVERAGE 
17 
FOR THE UNEMPLOYED. 
18 
(a) IN GENERAL.—Section 1902 of the Social Secu19 
rity Act (42 U.S.C. 1396b) is amended— 
20 
(1) in subsection (a)(10)(A)(ii)— 
21 


(A) by striking ‘‘or’’ at the end of sub


22 


clause (XVIII); 

23 


(B) by adding ‘‘or’’ at the end of subclause 

24 


(XIX); and 

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390 

1 


(C) by adding at the end the following new 

2 


subclause 

3 


‘‘(XX) who are described in sub


4 


section (dd)(1) (relating to certain un


5 


employed individuals and their fami6 
lies);’’; and 
7 
(2) by adding at the end the following new sub8 
section: 
9 
‘‘(dd)(1) Individuals described in this paragraph 
10 
are— 
11 
‘‘(A) individuals who— 
12 
‘‘(i) are within one or more of the categories de13 
scribed in paragraph (2), as elected under the State 
14 
plan; and 
15 
‘‘(ii) meet the applicable requirements of para16 
graph (3); and 
17 
‘‘(B) individuals who— 
18 
‘‘(i) are the spouse, or dependent child under 
19 
19 years of age, of an individual described in sub20 
paragraph (A); and 
21 


‘‘(ii) meet the requirement of paragraph (3)(B). 

22 


‘‘(2) The categories of individuals described in this 
23 
paragraph are each of the following: 
24 


‘‘(A)(i) Individuals who are receiving unemploy


25 


ment compensation benefits; and 

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391 

1 


‘‘(ii) individuals who were receiving, but have 

2 


exhausted, unemployment compensation benefits on 

3 


or after July 1, 2008. 

4 


‘‘(B) Individuals who are involuntarily unem


5 


ployed and were involuntarily separated from em6 
ployment on or after September 1, 2008, and before 
7 
January 1, 2011, whose family gross income does 
8 
not exceed a percentage specified by the State (not 
9 
to exceed 200 percent) of the income official poverty 
10 
line (as defined by the Office of Management and 
11 
Budget, and revised annually in accordance with sec12 
tion 673(2) of the Omnibus Budget Reconciliation 
13 
Act of 1981) applicable to a family of the size in14 
volved, and who, but for subsection 
15 
(a)(10)(A)(ii)(XX), are not eligible for medical as16 
sistance under this title or health assistance under 
17 
title XXI. 
18 
‘‘(C) Individuals who are involuntarily unem19 
ployed and were involuntarily separated from em20 
ployment on or after September 1, 2008, and before 
21 


January 1, 2011, who are members of households 

22 


participating in the supplemental nutrition assist


23 


ance program established under the Food and Nutri


24 


tion Act of 2008 (7 U.S.C. 2011 et seq), and who, 

25 


but for subsection (a)(10)(A)(ii)(XX), are not eligi


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392 

1 


ble for medical assistance under this title or health 

2 


assistance under title XXI. 

3 


‘‘(3) The requirements of this paragraph with respect 
4 
to an individual are the following: 
5 


‘‘(A) In the case of individuals within a cat6 
egory described in subparagraph (A)(i) of paragraph 
7 
(2), the individual was involuntarily separated from 
8 
employment on or after September 1, 2008, and be9 
fore January 1, 2011, or meets such comparable re10 
quirement as the Secretary specifies through rule, 
11 
guidance, or otherwise in the case of an individual 
12 
who was an independent contractor. 
13 
‘‘(B) The individual is not otherwise covered 
14 
under creditable coverage, as defined in section 
15 
2701(c) of the Public Health Service Act (42 U.S.C. 
16 
300gg(c)), but applied without regard to paragraph 
17 
(1)(F) of such section and without regard to cov18 
erage provided by reason of the application of sub19 
section (a)(10)(A)(ii)(XX). 
20 
‘‘(4)(A) No income or resources test shall be applied 
21 
with respect to any category of individuals described in 
22 
subparagraph (A) or (C) of paragraph (2) who are eligible 
23 
for medical assistance only by reason of the application 
24 
of subsection (a)(10)(A)(ii)(XX). 

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393 

1 


‘‘(B) Nothing in this subsection shall be construed 
2 
to prevent a State from imposing a resource test for the 
3 
category of individuals described in paragraph (2)(B)). 
4 


‘‘(C) In the case of individuals described in paragraph 
5 
(2)(A) or (2)(C), the requirements of subsections (i)(22) 
6 
and (x) in section 1903 shall not apply.’’. 
7 
(b) 100 PERCENT FEDERAL MATCHING RATE.— 
8 
(1) FMAP FOR TIME-LIMITED PERIOD.—The 
9 
third sentence of section 1905(b) of such Act (42 
10 
U.S.C. 1396d(b)) is amended by inserting before the 
11 
period at the end the following: ‘‘and for items and 
12 
services furnished on or after the date of enactment 
13 
of this Act and before January 1, 2011, to individ14 
uals who are eligible for medical assistance only by 
15 
reason of the application of section 
16 
1902(a)(10)(A)(ii)(XX)’’. 
17 
(2) CERTAIN ENROLLMENT-RELATED ADMINIS18 
TRATIVE COSTS.—Notwithstanding any other provi19 
sion of law, for purposes of applying section 1903(a) 
20 
of the Social Security Act (42 U.S.C. 1396b(a)), 
21 


with respect to expenditures incurred on or after the 

22 


date of the enactment of this Act and before Janu


23 


ary 1, 2011, for costs of administration (including 

24 


outreach and the modification and operation of eligi


25 


bility information systems) attributable to eligibility 

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394 

1 


determination and enrollment of individuals who are 

2 


eligible for medical assistance only by reason of the 

3 


application of section 1902(a)(10)(A)(ii)(XX) of 

4 


such Act, as added by subsection (a)(1), the Federal 

5 


matching percentage shall be 100 percent instead of 
6 
the matching percentage otherwise applicable. 
7 
(c) CONFORMING AMENDMENTS.—(1) Section 
8 
1903(f)(4) of such Act (42 U.S.C. 1396c(f)(4)) is amend9 
ed by inserting ‘‘1902(a)(10)(A)(ii)(XX), or’’ after 
10 
‘‘1902(a)(10)(A)(ii)(XIX),’’. 
11 
(2) Section 1905(a) of such Act (42 U.S.C. 
12 
1396d(a)) is amended, in the matter preceding paragraph 
13 
(1)— 
14 
(A) by striking ‘‘or’’ at the end of clause (xii); 
15 
(B) by adding ‘‘or’’ at the end of clause (xiii); 
16 
and 
17 
(C) by inserting after clause (xiii) the following 
18 
new clause: 
19 
‘‘(xiv) individuals described in section 
20 
1902(dd)(1),’’. 

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395 

1 


TITLE IV—HEALTH 


2 


INFORMATION TECHNOLOGY 


3 
SEC. 4001. SHORT TITLE; TABLE OF CONTENTS OF TITLE. 

4 


(a) SHORT TITLE.—This title may be cited as the 
5 
‘‘Health Information Technology for Economic and Clin


6 
ical Health Act’’ or the ‘‘HITECH Act’’. 

7 
(b) TABLE OF CONTENTS OF TITLE.—The table of 

8 
contents of this title is as follows: 

Sec. 4001. Short title; table of contents of title. 

Subtitle A—Promotion of Health Information Technology 

PART I—IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY 

Sec. 4101. ONCHIT; standards development and adoption. 

‘‘TITLE XXX—HEALTH INFORMATION TECHNOLOGY AND 
QUALITY 

‘‘Sec. 3000. Definitions. 

‘‘Subtitle A—Promotion of Health Information Technology 

‘‘Sec. 3001. Office of the National Coordinator for Health Information 

Technology. 
‘‘Sec. 3002. HIT Policy Committee. 
‘‘Sec. 3003. HIT Standards Committee. 
‘‘Sec. 3004. Process for adoption of endorsed recommendations; adoption 

of initial set of standards, implementation specifications, 
and certification criteria. 
‘‘Sec. 3005. Application and use of adopted standards and implementation 
specifications by Federal agencies. 
‘‘Sec. 3006. Voluntary application and use of adopted standards and im


plementation specifications by private entities. 
‘‘Sec. 3007. Federal health information technology. 
‘‘Sec. 3008. Transitions. 
‘‘Sec. 3009. Relation to HIPAA privacy and security law. 
‘‘Sec. 3010. Authorization for appropriations. 

Sec. 4102. Technical amendment. 

PART II—APPLICATION AND USE OF ADOPTED HEALTH INFORMATION 
TECHNOLOGY STANDARDS; REPORTS 


Sec. 4111. Coordination of Federal activities with adopted standards and imple


mentation specifications. 
Sec. 4112. Application to private entities. 
Sec. 4113. Study and reports. 


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396 

Subtitle B—Testing of Health Information Technology 

Sec. 4201. National Institute for Standards and Technology testing. 
Sec. 4202. Research and development programs. 

Subtitle C—Incentives for the Use of Health Information Technology 

PART I—GRANTS AND LOANS FUNDING 

Sec. 4301. Grant, loan, and demonstration programs. 

‘‘Subtitle B—Incentives for the Use of Health Information Technology 

‘‘Sec. 3011. Immediate funding to strengthen the health information tech


nology infrastructure. 
‘‘Sec. 3012. Health information technology implementation assistance. 
‘‘Sec. 3013. State grants to promote health information technology. 
‘‘Sec. 3014. Competitive grants to States and Indian tribes for the devel


opment of loan programs to facilitate the widespread 
adoption of certified EHR technology. 
‘‘Sec. 3015. Demonstration program to integrate information technology 

into clinical education. 
‘‘Sec. 3016. Information technology professionals on health care. 
‘‘Sec. 3017. General grant and loan provisions. 
‘‘Sec. 3018. Authorization for appropriations. 


PART II—MEDICARE PROGRAM 

Sec. 4311. Incentives for eligible professionals. 

Sec. 4312. Incentives for hospitals. 

Sec. 4313. Treatment of payments and savings; implementation funding. 

Sec. 4314. Study on application of EHR payment incentives for providers not 
receiving other incentive payments. 

PART III—MEDICAID FUNDING 

Sec. 4321. Medicaid provider HIT adoption and operation payments; implementation 
funding. 

Sec. 4322. Medicaid nursing home grant program. 

Subtitle D—Privacy 

Sec. 4400. Definitions. 

PART I—IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS 

Sec. 4401. Application of security provisions and penalties to business associates 
of covered entities; annual guidance on security provisions. 

Sec. 4402. Notification in the case of breach. 

Sec. 4403. Education on Health Information Privacy. 

Sec. 4404. Application of privacy provisions and penalties to business associates 
of covered entities. 

Sec. 4405. Restrictions on certain disclosures and sales of health information; 
accounting of certain protected health information disclosures; 
access to certain information in electronic format. 

Sec. 4406. Conditions on certain contacts as part of health care operations. 

Sec. 4407. Temporary breach notification requirement for vendors of personal 
health records and other non-HIPAA covered entities. 

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397 

Sec. 4408. Business associate contracts required for certain entities. 
Sec. 4409. Clarification of application of wrongful disclosures criminal pen


alties. 
Sec. 4410. Improved enforcement. 
Sec. 4411. Audits. 
Sec. 4412. Special rule for information to reduce medication errors and improve 

patient safety. 

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

Sec. 4421. Relationship to other laws. 
Sec. 4422. Regulatory references. 
Sec. 4423. Effective date. 
Sec. 4424. Studies, reports, guidance. 


Subtitle E—Miscellaneous Medicare Provisions 

Sec. 4501. Moratoria on certain Medicare regulations. 
Sec. 4502. Long-term care hospital technical corrections. 


1 
Subtitle A—Promotion of Health 
2 
Information Technology 
3 
PART I—IMPROVING HEALTH CARE QUALITY, 


4 
SAFETY, AND EFFICIENCY 

5 
SEC. 4101. ONCHIT; STANDARDS DEVELOPMENT AND ADOP


6 
TION. 

7 
The Public Health Service Act (42 U.S.C. 201 et 

8 
seq.) is amended by adding at the end the following: 

9 
‘‘TITLE XXX—HEALTH INFORMA10 
TION TECHNOLOGY AND 
11 
QUALITY 
12 
‘‘SEC. 3000. DEFINITIONS. 

13 


‘‘In this title: 

14 


‘‘(1) CERTIFIED EHR TECHNOLOGY.—The term 

15 


‘certified EHR technology’ means a qualified elec


16 


tronic health record that is certified pursuant to sec


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398 

1 


tion 3001(c)(5) as meeting standards adopted under 

2 


section 3004 that are applicable to the type of 

3 


record involved (as determined by the Secretary, 

4 


such as an ambulatory electronic health record for 

5 


office-based physicians or an inpatient hospital elec6 
tronic health record for hospitals). 
7 
‘‘(2) ENTERPRISE INTEGRATION.—The term 
8 
‘enterprise integration’ means the electronic linkage 
9 
of health care providers, health plans, the govern10 
ment, and other interested parties, to enable the 
11 
electronic exchange and use of health information 
12 
among all the components in the health care infra13 
structure in accordance with applicable law, and 
14 
such term includes related application protocols and 
15 
other related standards. 
16 
‘‘(3) HEALTH CARE PROVIDER.—The term 
17 
‘health care provider’ means a hospital, skilled nurs18 
ing facility, nursing facility, home health entity or 
19 
other long term care facility, health care clinic, Fed20 
erally qualified health center, group practice (as de21 


fined in section 1877(h)(4) of the Social Security 

22 


Act), a pharmacist, a pharmacy, a laboratory, a phy


23 


sician (as defined in section 1861(r) of the Social 

24 


Security Act), a practitioner (as described in section 

25 


1842(b)(18)(C) of the Social Security Act), a pro-

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399 

1 


vider operated by, or under contract with, the Indian 

2 


Health Service or by an Indian tribe (as defined in 

3 


the Indian Self-Determination and Education Assist


4 


ance Act), tribal organization, or urban Indian orga


5 


nization (as defined in section 4 of the Indian 
6 
Health Care Improvement Act), a rural health clinic, 
7 
a covered entity under section 340B, an ambulatory 
8 
surgical center described in section 1833(i) of the 
9 
Social Security Act, and any other category of facil10 
ity or clinician determined appropriate by the Sec11 
retary. 
12 
‘‘(4) HEALTH INFORMATION.—The term ‘health 
13 
information’ has the meaning given such term in 
14 
section 1171(4) of the Social Security Act. 
15 
‘‘(5) HEALTH INFORMATION TECHNOLOGY.— 
16 
The term ‘health information technology’ means 
17 
hardware, software, integrated technologies and re18 
lated licenses, intellectual property, upgrades, and 
19 
packaged solutions sold as services that are specifi20 
cally designed for use by health care entities for the 
21 


electronic creation, maintenance, or exchange of 

22 


health information. 

23 


‘‘(6) HEALTH PLAN.—The term ‘health plan’ 

24 


has the meaning given such term in section 1171(5) 

25 


of the Social Security Act. 

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400 

1 


‘‘(7) HIT POLICY COMMITTEE.—The term ‘HIT 

2 


Policy Committee’ means such Committee estab


3 


lished under section 3002(a). 

4 


‘‘(8) HIT STANDARDS COMMITTEE.—The term 

5 


‘HIT Standards Committee’ means such Committee 
6 
established under section 3003(a). 
7 
‘‘(9) INDIVIDUALLY IDENTIFIABLE HEALTH IN8 
FORMATION.—The term ‘individually identifiable 
9 
health information’ has the meaning given such term 
10 
in section 1171(6) of the Social Security Act. 
11 
‘‘(10) LABORATORY.—The term ‘laboratory’ 
12 
has the meaning given such term in section 353(a). 
13 
‘‘(11) NATIONAL COORDINATOR.—The term 
14 
‘National Coordinator’ means the head of the Office 
15 
of the National Coordinator for Health Information 
16 
Technology established under section 3001(a). 
17 
‘‘(12) PHARMACIST.—The term ‘pharmacist’ 
18 
has the meaning given such term in section 804(2) 
19 
of the Federal Food, Drug, and Cosmetic Act. 
20 
‘‘(13) QUALIFIED ELECTRONIC HEALTH 
21 
RECORD.—The term ‘qualified electronic health 
22 


record’ means an electronic record of health-related 

23 


information on an individual that— 

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401 

1 


‘‘(A) includes patient demographic and 

2 


clinical health information, such as medical his


3 


tory and problem lists; and 

4 


‘‘(B) has the capacity— 

5 


‘‘(i) to provide clinical decision sup6 
port; 
7 
‘‘(ii) to support physician order entry; 
8 
‘‘(iii) to capture and query informa9 
tion relevant to health care quality; and 
10 
‘‘(iv) to exchange electronic health in11 
formation with, and integrate such infor12 
mation from other sources. 
13 
‘‘(14) STATE.—The term ‘State’ means each of 
14 
the several States, the District of Columbia, Puerto 
15 
Rico, the Virgin Islands, Guam, American Samoa, 
16 
and the Northern Mariana Islands. 
17 
‘‘Subtitle A—Promotion of Health 
18 
Information Technology 
19 
‘‘SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR 
20 
HEALTH INFORMATION TECHNOLOGY. 
21 


‘‘(a) ESTABLISHMENT.—There is established within 
22 
the Department of Health and Human Services an Office 
23 
of the National Coordinator for Health Information Tech24 
nology (referred to in this section as the ‘Office’). The Of25 
fice shall be headed by a National Coordinator who shall 

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402 
1 
be appointed by the Secretary and shall report directly to 
2 
the Secretary. 
3 


‘‘(b) PURPOSE.—The National Coordinator shall per4 
form the duties under subsection (c) in a manner con5 
sistent with the development of a nationwide health infor6 
mation technology infrastructure that allows for the elec7 
tronic use and exchange of information and that— 
8 
‘‘(1) ensures that each patient’s health informa9 
tion is secure and protected, in accordance with ap10 
plicable law; 
11 
‘‘(2) improves health care quality, reduces med12 
ical errors, reduces health disparities, and advances 
13 
the delivery of patient-centered medical care; 
14 
‘‘(3) reduces health care costs resulting from 
15 
inefficiency, medical errors, inappropriate care, du16 
plicative care, and incomplete information; 
17 
‘‘(4) provides appropriate information to help 
18 
guide medical decisions at the time and place of 
19 
care; 
20 
‘‘(5) ensures the inclusion of meaningful public 
21 


input in such development of such infrastructure; 

22 


‘‘(6) improves the coordination of care and in


23 


formation among hospitals, laboratories, physician 

24 


offices, and other entities through an effective infra-

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403 

1 


structure for the secure and authorized exchange of 

2 


health care information; 

3 


‘‘(7) improves public health activities and facili


4 


tates the early identification and rapid response to 

5 


public health threats and emergencies, including bio6 
terror events and infectious disease outbreaks; 
7 
‘‘(8) facilitates health and clinical research and 
8 
health care quality; 
9 
‘‘(9) promotes prevention of chronic diseases; 
10 
‘‘(10) promotes a more effective marketplace, 
11 
greater competition, greater systems analysis, in12 
creased consumer choice, and improved outcomes in 
13 
health care services; and 
14 
‘‘(11) improves efforts to reduce health dispari15 
ties. 
16 
‘‘(c) DUTIES OF THE NATIONAL COORDINATOR.— 
17 
‘‘(1) STANDARDS.—The National Coordinator 
18 
shall review and determine whether to endorse each 
19 
standard, implementation specification, and certifi20 
cation criterion for the electronic exchange and use 
21 


of health information that is recommended by the 

22 


HIT Standards Committee under section 3003 for 

23 


purposes of adoption under section 3004. The Coor


24 


dinator shall make such determination, and report to 

25 


the Secretary such determination, not later than 45 

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404 

1 


days after the date the recommendation is received 

2 


by the Coordinator. 

3 


‘‘(2) HIT POLICY COORDINATION.— 

4 


‘‘(A) IN GENERAL.—The National Coordi


5 


nator shall coordinate health information tech6 
nology policy and programs of the Department 
7 
with those of other relevant executive branch 
8 
agencies with a goal of avoiding duplication of 
9 
efforts and of helping to ensure that each agen10 
cy undertakes health information technology ac11 
tivities primarily within the areas of its greatest 
12 
expertise and technical capability and in a man13 
ner towards a coordinated national goal. 
14 
‘‘(B) HIT POLICY AND STANDARDS COM15 
MITTEES.—The National Coordinator shall be a 
16 
leading member in the establishment and oper17 
ations of the HIT Policy Committee and the 
18 
HIT Standards Committee and shall serve as a 
19 
liaison among those two Committees and the 
20 
Federal Government. 
21 


‘‘(3) STRATEGIC PLAN.— 

22 


‘‘(A) IN GENERAL.—The National Coordi


23 


nator shall, in consultation with other appro


24 


priate Federal agencies (including the National 

25 


Institute of Standards and Technology), update 

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1 


the Federal Health IT Strategic Plan (devel


2 


oped as of June 3, 2008) to include specific ob


3 


jectives, milestones, and metrics with respect to 

4 


the following: 

5 


‘‘(i) The electronic exchange and use 
6 
of health information and the enterprise 
7 
integration of such information. 
8 
‘‘(ii) The utilization of an electronic 
9 
health record for each person in the United 
10 
States by 2014. 
11 
‘‘(iii) The incorporation of privacy and 
12 
security protections for the electronic ex13 
change of an individual’s individually iden14 
tifiable health information. 
15 
‘‘(iv) Ensuring security methods to 
16 
ensure appropriate authorization and elec17 
tronic authentication of health information 
18 
and specifying technologies or methodolo19 
gies for rendering health information unus20 
able, unreadable, or indecipherable. 
21 


‘‘(v) Specifying a framework for co


22 


ordination and flow of recommendations 

23 


and policies under this subtitle among the 

24 


Secretary, the National Coordinator, the 

25 


HIT Policy Committee, the HIT Standards 

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406 

1 


Committee, and other health information 

2 


exchanges and other relevant entities. 

3 


‘‘(vi) Methods to foster the public un


4 


derstanding of health information tech


5 


nology. 
6 
‘‘(vii) Strategies to enhance the use of 
7 
health information technology in improving 
8 
the quality of health care, reducing medical 
9 
errors, reducing health disparities, improv10 
ing public health, and improving the con11 
tinuity of care among health care settings. 
12 
‘‘(B) COLLABORATION.—The strategic 
13 
plan shall be updated through collaboration of 
14 
public and private entities. 
15 
‘‘(C) MEASURABLE OUTCOME GOALS.— 
16 
The strategic plan update shall include measur17 
able outcome goals. 
18 
‘‘(D) PUBLICATION.—The National Coor19 
dinator shall republish the strategic plan, in20 
cluding all updates. 
21 
‘‘(4) WEBSITE.—The National Coordinator 
22 


shall maintain and frequently update an Internet 

23 


website on which there is posted information on the 
24 
work, schedules, reports, recommendations, and 
25 


other information to ensure transparency in pro-

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407 

1 


motion of a nationwide health information tech


2 


nology infrastructure. 

3 


‘‘(5) CERTIFICATION.— 

4 


‘‘(A) IN GENERAL.—The National Coordi


5 


nator, in consultation with the Director of the 
6 
National Institute of Standards and Tech7 
nology, shall develop a program (either directly 
8 
or by contract) for the voluntary certification of 
9 
health information technology as being in com10 
pliance with applicable certification criteria 
11 
adopted under this subtitle. Such program shall 
12 
include testing of the technology in accordance 
13 
with section 4201(b) of the HITECH Act. 
14 
‘‘(B) CERTIFICATION CRITERIA DE15 
SCRIBED.—In this title, the term ‘certification 
16 
criteria’ means, with respect to standards and 
17 
implementation specifications for health infor18 
mation technology, criteria to establish that the 
19 
technology meets such standards and implemen20 
tation specifications. 
21 


‘‘(6) REPORTS AND PUBLICATIONS.— 

22 


‘‘(A) REPORT ON ADDITIONAL FUNDING 
23 
OR AUTHORITY NEEDED.—Not later than 12 
24 


months after the date of the enactment of this 

25 


title, the National Coordinator shall submit to 

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408 

1 


the appropriate committees of jurisdiction of 

2 


the House of Representatives and the Senate a 

3 


report on any additional funding or authority 

4 


the Coordinator or the HIT Policy Committee 

5 


or HIT Standards Committee requires to evalu6 
ate and develop standards, implementation 
7 
specifications, and certification criteria, or to 
8 
achieve full participation of stakeholders in the 
9 
adoption of a nationwide health information 
10 
technology infrastructure that allows for the 
11 
electronic use and exchange of health informa12 
tion. 
13 
‘‘(B) IMPLEMENTATION REPORT.—The 
14 
National Coordinator shall prepare a report 
15 
that identifies lessons learned from major pub16 
lic and private health care systems in their im17 
plementation of health information technology, 
18 
including information on whether the tech19 
nologies and practices developed by such sys20 
tems may be applicable to and usable in whole 
21 


or in part by other health care providers. 

22 


‘‘(C) ASSESSMENT OF IMPACT OF HIT ON 

23 


COMMUNITIES WITH HEALTH DISPARITIES AND 

24 


UNINSURED, UNDERINSURED, AND MEDICALLY 

25 


UNDERSERVED AREAS.—The National Coordi


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409 

1 


nator shall assess and publish the impact of 

2 


health information technology in communities 

3 


with health disparities and in areas with a high 

4 


proportion of individuals who are uninsured, 

5 


underinsured, and medically underserved indi6 
viduals (including urban and rural areas) and 
7 
identify practices to increase the adoption of 
8 
such technology by health care providers in 
9 
such communities. 
10 
‘‘(D) EVALUATION OF BENEFITS AND 
11 
COSTS OF THE ELECTRONIC USE AND EX12 
CHANGE OF HEALTH INFORMATION.—The Na13 
tional Coordinator shall evaluate and publish 
14 
evidence on the benefits and costs of the elec15 
tronic use and exchange of health information 
16 
and assess to whom these benefits and costs ac17 
crue. 
18 
‘‘(E) RESOURCE REQUIREMENTS.—The 
19 
National Coordinator shall estimate and publish 
20 
resources required annually to reach the goal of 
21 


utilization of an electronic health record for 

22 


each person in the United States by 2014, in


23 


cluding the required level of Federal funding, 

24 


expectations for regional, State, and private in


25 


vestment, and the expected contributions by vol


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410 

1 


unteers to activities for the utilization of such 

2 


records. 

3 


‘‘(7) ASSISTANCE.—The National Coordinator 

4 


may provide financial assistance to consumer advo


5 


cacy groups and not-for-profit entities that work in 
6 
the public interest for purposes of defraying the cost 
7 
to such groups and entities to participate under, 
8 
whether in whole or in part, the National Tech9 
nology Transfer Act of 1995 (15 U.S.C. 272 note). 
10 
‘‘(8) GOVERNANCE FOR NATIONWIDE HEALTH 
11 
INFORMATION NETWORK.—The National Coordi12 
nator shall establish a governance mechanism for the 
13 
nationwide health information network. 
14 
‘‘(d) DETAIL OF FEDERAL EMPLOYEES.— 
15 
‘‘(1) IN GENERAL.—Upon the request of the 
16 
National Coordinator, the head of any Federal agen17 
cy is authorized to detail, with or without reimburse18 
ment from the Office, any of the personnel of such 
19 
agency to the Office to assist it in carrying out its 
20 
duties under this section. 
21 
‘‘(2) EFFECT OF DETAIL.—Any detail of per22 


sonnel under paragraph (1) shall— 

23 


‘‘(A) not interrupt or otherwise affect the 

24 


civil service status or privileges of the Federal 

25 


employee; and 

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411 

1 
‘‘(B) be in addition to any other staff of 

2 
the Department employed by the National Co


3 
ordinator. 

4 
‘‘(3) ACCEPTANCE OF DETAILEES.—Notwith


5 
standing any other provision of law, the Office may 

6 
accept detailed personnel from other Federal agen


7 
cies without regard to whether the agency described 

8 
under paragraph (1) is reimbursed. 

9 
‘‘(e) CHIEF PRIVACY OFFICER OF THE OFFICE OF 
10 
THE NATIONAL COORDINATOR.—Not later than 12 
11 
months after the date of the enactment of this title, the 
12 
Secretary shall appoint a Chief Privacy Officer of the Of13 
fice of the National Coordinator, whose duty it shall be 
14 
to advise the National Coordinator on privacy, security, 
15 
and data stewardship of electronic health information and 
16 
to coordinate with other Federal agencies (and similar pri17 
vacy officers in such agencies), with State and regional 
18 
efforts, and with foreign countries with regard to the pri19 
vacy, security, and data stewardship of electronic individ20 
ually identifiable health information. 
21 
‘‘SEC. 3002. HIT POLICY COMMITTEE. 

‘‘(a) ESTABLISHMENT.—There is established a HIT 
23 
Policy Committee to make policy recommendations to the 
24 
National Coordinator relating to the implementation of a 
25 
nationwide health information technology infrastructure, 

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412 
1 
including implementation of the strategic plan described 
2 
in section 3001(c)(3). 
3 


‘‘(b) DUTIES.— 

4 


‘‘(1) RECOMMENDATIONS ON HEALTH INFOR


5 


MATION TECHNOLOGY INFRASTRUCTURE.—The HIT 
6 
Policy Committee shall recommend a policy frame7 
work for the development and adoption of a nation8 
wide health information technology infrastructure 
9 
that permits the electronic exchange and use of 
10 
health information as is consistent with the strategic 
11 
plan under section 3001(c)(3) and that includes the 
12 
recommendations under paragraph (2). The Com13 
mittee shall update such recommendations and make 
14 
new recommendations as appropriate. 
15 
‘‘(2) SPECIFIC AREAS OF STANDARD DEVELOP16 
MENT.— 
17 
‘‘(A) IN GENERAL.—The HIT Policy Com18 
mittee shall recommend the areas in which 
19 
standards, implementation specifications, and 
20 
certification criteria are needed for the elec21 


tronic exchange and use of health information 

22 


for purposes of adoption under section 3004 

23 


and shall recommend an order of priority for 

24 


the development, harmonization, and recogni


25 


tion of such standards, specifications, and cer


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413 

1 


tification criteria among the areas so rec


2 


ommended. Such standards and implementation 

3 


specifications shall include named standards, 

4 


architectures, and software schemes for the au


5 


thentication and security of individually identifi6 
able health information and other information 
7 
as needed to ensure the reproducible develop8 
ment of common solutions across disparate en9 
tities. 
10 
‘‘(B) AREAS REQUIRED FOR CONSIDER11 
ATION.—For purposes of subparagraph (A), the 
12 
HIT Policy Committee shall make recommenda13 
tions for at least the following areas: 
14 
‘‘(i) Technologies that protect the pri15 
vacy of health information and promote se16 
curity in a qualified electronic health 
17 
record, including for the segmentation and 
18 
protection from disclosure of specific and 
19 
sensitive individually identifiable health in20 
formation with the goal of minimizing the 
21 


reluctance of patients to seek care (or dis


22 


close information about a condition) be


23 


cause of privacy concerns, in accordance 

24 


with applicable law, and for the use and 

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1 


disclosure of limited data sets of such in


2 


formation. 

3 


‘‘(ii) A nationwide health information 

4 


technology infrastructure that allows for 

5 


the electronic use and accurate exchange of 
6 
health information. 
7 
‘‘(iii) The utilization of a certified 
8 
electronic health record for each person in 
9 
the United States by 2014. 
10 
‘‘(iv) Technologies that as a part of a 
11 
qualified electronic health record allow for 
12 
an accounting of disclosures made by a 
13 
covered entity (as defined for purposes of 
14 
regulations promulgated under section 
15 
264(c) of the Health Insurance Portability 
16 
and Accountability Act of 1996) for pur17 
poses of treatment, payment, and health 
18 
care operations (as such terms are defined 
19 
for purposes of such regulations). 
20 
‘‘(v) The use of certified electronic 
21 


health records to improve the quality of 

22 


health care, such as by promoting the co


23 


ordination of health care and improving 

24 


continuity of health care among health 

25 


care providers, by reducing medical errors, 

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1 


by improving population health, by reduc


2 


ing health disparities, and by advancing re


3 


search and education. 

4 


‘‘(vi) Technologies that allow individ


5 


ually identifiable health information to be 
6 
rendered unusable, unreadable, or indeci7 
pherable to unauthorized individuals when 
8 
such information is transmitted in the na9 
tionwide health information network or 
10 
physically transported outside of the se11 
cured, physical perimeter of a health care 
12 
provider, health plan, or health care clear13 
inghouse. 
14 
‘‘(C) OTHER AREAS FOR CONSIDER15 
ATION.—In making recommendations under 
16 
subparagraph (A), the HIT Policy Committee 
17 
may consider the following additional areas: 
18 
‘‘(i) The appropriate uses of a nation19 
wide health information infrastructure, in20 
cluding for purposes of— 
21 


‘‘(I) the collection of quality data 

22 


and public reporting; 

23 


‘‘(II) biosurveillance and public 
24 
health; 

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1 


‘‘(III) medical and clinical re


2 


search; and 

3 


‘‘(IV) drug safety. 

4 


‘‘(ii) Self-service technologies that fa


5 


cilitate the use and exchange of patient in6 
formation and reduce wait times. 
7 
‘‘(iii) Telemedicine technologies, in 
8 
order to reduce travel requirements for pa9 
tients in remote areas. 
10 
‘‘(iv) Technologies that facilitate home 
11 
health care and the monitoring of patients 
12 
recuperating at home. 
13 
‘‘(v) Technologies that help reduce 
14 
medical errors. 
15 
‘‘(vi) Technologies that facilitate the 
16 
continuity of care among health settings. 
17 
‘‘(vii) Technologies that meet the 
18 
needs of diverse populations. 
19 
‘‘(viii) Any other technology that the 
20 
HIT Policy Committee finds to be among 
21 


the technologies with the greatest potential 

22 


to improve the quality and efficiency of 

23 


health care. 

24 


‘‘(3) FORUM.—The HIT Policy Committee shall 

25 


serve as a forum for broad stakeholder input with 

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1 


specific expertise in policies relating to the matters 

2 


described in paragraphs (1) and (2). 

3 


‘‘(c) MEMBERSHIP AND OPERATIONS.— 

4 


‘‘(1) IN GENERAL.—The National Coordinator 

5 


shall provide leadership in the establishment and op6 
erations of the HIT Policy Committee. 
7 
‘‘(2) MEMBERSHIP.—The membership of the 
8 
HIT Policy Committee shall at least reflect pro9 
viders, ancillary healthcare workers, consumers, pur10 
chasers, health plans, technology vendors, research11 
ers, relevant Federal agencies, and individuals with 
12 
technical expertise on health care quality, privacy 
13 
and security, and on the electronic exchange and use 
14 
of health information. 
15 
‘‘(3) CONSIDERATION.—The National Coordi16 
nator shall ensure that the relevant recommenda17 
tions and comments from the National Committee 
18 
on Vital and Health Statistics are considered in the 
19 
development of policies. 
20 
‘‘(d) APPLICATION OF FACA.—The Federal Advisory 
21 
Committee Act (5 U.S.C. App.), other than section 14 of 
22 
such Act, shall apply to the HIT Policy Committee. 
23 


‘‘(e) PUBLICATION.—The Secretary shall provide for 
24 
publication in the Federal Register and the posting on the 
25 
Internet website of the Office of the National Coordinator 

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1 
for Health Information Technology of all policy rec2 
ommendations made by the HIT Policy Committee under 
3 
this section. 
4 
‘‘SEC. 3003. HIT STANDARDS COMMITTEE. 
5 


‘‘(a) ESTABLISHMENT.—There is established a com6 
mittee to be known as the HIT Standards Committee to 
7 
recommend to the National Coordinator standards, imple8 
mentation specifications, and certification criteria for the 
9 
electronic exchange and use of health information for pur10 
poses of adoption under section 3004, consistent with the 
11 
implementation of the strategic plan described in section 
12 
3001(c)(3) and beginning with the areas listed in section 
13 
3002(b)(2)(B) in accordance with policies developed by 
14 
the HIT Policy Committee. 
15 
‘‘(b) DUTIES.— 
16 
‘‘(1) STANDARDS DEVELOPMENT.— 
17 
‘‘(A) IN GENERAL.—The HIT Standards 
18 
Committee shall recommend to the National 
19 
Coordinator standards, implementation speci20 
fications, and certification criteria described in 
21 


subsection (a) that have been developed, har


22 


monized, or recognized by the HIT Standards 

23 


Committee. The HIT Standards Committee 

24 


shall update such recommendations and make 

25 


new recommendations as appropriate, including 

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419 

1 


in response to a notification sent under section 

2 


3004(a)(2)(B). Such recommendations shall be 
3 
consistent with the latest recommendations 
4 


made by the HIT Policy Committee. 

5 


‘‘(B) PILOT TESTING OF STANDARDS AND 
6 
IMPLEMENTATION SPECIFICATIONS.—In the de7 
velopment, harmonization, or recognition of 
8 
standards and implementation specifications, 
9 
the HIT Standards Committee shall, as appro10 
priate, provide for the testing of such standards 
11 
and specifications by the National Institute for 
12 
Standards and Technology under section 
13 
4201(a) of the HITECH Act. 
14 
‘‘(C) CONSISTENCY.—The standards, im15 
plementation specifications, and certification 
16 
criteria recommended under this subsection 
17 
shall be consistent with the standards for infor18 
mation transactions and data elements adopted 
19 
pursuant to section 1173 of the Social Security 
20 
Act. 
21 


‘‘(2) FORUM.—The HIT Standards Committee 

22 


shall serve as a forum for the participation of a 

23 


broad range of stakeholders to provide input on the 
24 
development, harmonization, and recognition of 
25 


standards, implementation specifications, and certifi


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1 


cation criteria necessary for the development and 

2 


adoption of a nationwide health information tech


3 


nology infrastructure that allows for the electronic 

4 


use and exchange of health information. 

5 


‘‘(3) SCHEDULE.—Not later than 90 days after 
6 
the date of the enactment of this title, the HIT 
7 
Standards Committee shall develop a schedule for 
8 
the assessment of policy recommendations developed 
9 
by the HIT Policy Committee under section 3002. 
10 
The HIT Standards Committee shall update such 
11 
schedule annually. The Secretary shall publish such 
12 
schedule in the Federal Register. 
13 
‘‘(4) PUBLIC INPUT.—The HIT Standards 
14 
Committee shall conduct open public meetings and 
15 
develop a process to allow for public comment on the 
16 
schedule described in paragraph (3) and rec17 
ommendations described in this subsection. Under 
18 
such process comments shall be submitted in a time19 
ly manner after the date of publication of a rec20 
ommendation under this subsection. 
21 


‘‘(c) MEMBERSHIP AND OPERATIONS.— 

22 


‘‘(1) IN GENERAL.—The National Coordinator 

23 


shall provide leadership in the establishment and op


24 


erations of the HIT Standards Committee. 

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1 


‘‘(2) MEMBERSHIP.—The membership of the 

2 


HIT Standards Committee shall at least reflect pro


3 


viders, ancillary healthcare workers, consumers, pur


4 


chasers, health plans, technology vendors, research


5 


ers, relevant Federal agencies, and individuals with 
6 
technical expertise on health care quality, privacy 
7 
and security, and on the electronic exchange and use 
8 
of health information. 
9 
‘‘(3) CONSIDERATION.—The National Coordi10 
nator shall ensure that the relevant recommenda11 
tions and comments from the National Committee 
12 
on Vital and Health Statistics are considered in the 
13 
development of standards. 
14 
‘‘(4) ASSISTANCE.—For the purposes of car15 
rying out this section, the Secretary may provide or 
16 
ensure that financial assistance is provided by the 
17 
HIT Standards Committee to defray in whole or in 
18 
part any membership fees or dues charged by such 
19 
Committee to those consumer advocacy groups and 
20 
not for profit entities that work in the public inter21 


est as a part of their mission. 

22 


‘‘(d) APPLICATION OF FACA.—The Federal Advisory 
23 
Committee Act (5 U.S.C. App.), other than section 14, 
24 
shall apply to the HIT Standards Committee. 

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1 


‘‘(e) PUBLICATION.—The Secretary shall provide for 
2 
publication in the Federal Register and the posting on the 
3 
Internet website of the Office of the National Coordinator 
4 
for Health Information Technology of all recommenda5 
tions made by the HIT Standards Committee under this 
6 
section. 
7 
‘‘SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED REC8 
OMMENDATIONS; ADOPTION OF INITIAL SET 
9 
OF STANDARDS, IMPLEMENTATION SPECI10 
FICATIONS, AND CERTIFICATION CRITERIA. 
11 
‘‘(a) PROCESS FOR ADOPTION OF ENDORSED REC12 
OMMENDATIONS.— 
13 
‘‘(1) REVIEW OF ENDORSED STANDARDS, IM14 
PLEMENTATION SPECIFICATIONS, AND CERTIFI15 
CATION CRITERIA.—Not later than 90 days after the 
16 
date of receipt of standards, implementation speci17 
fications, or certification criteria endorsed under sec18 
tion 3001(c), the Secretary, in consultation with rep19 
resentatives of other relevant Federal agencies, shall 
20 
jointly review such standards, implementation speci21 


fications, or certification criteria and shall determine 

22 


whether or not to propose adoption of such stand


23 


ards, implementation specifications, or certification 
24 
criteria. 

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1 


‘‘(2) DETERMINATION TO ADOPT STANDARDS, 

2 


IMPLEMENTATION SPECIFICATIONS, AND CERTIFI


3 


CATION CRITERIA.—If the Secretary determines— 

4 


‘‘(A) to propose adoption of any grouping 

5 


of such standards, implementation specifica6 
tions, or certification criteria, the Secretary 
7 
shall, by regulation, determine whether or not 
8 
to adopt such grouping of standards, implemen9 
tation specifications, or certification criteria; or 
10 
‘‘(B) not to propose adoption of any group11 
ing of standards, implementation specifications, 
12 
or certification criteria, the Secretary shall no13 
tify the National Coordinator and the HIT 
14 
Standards Committee in writing of such deter15 
mination and the reasons for not proposing the 
16 
adoption of such recommendation. 
17 
‘‘(3) PUBLICATION.—The Secretary shall pro18 
vide for publication in the Federal Register of all de19 
terminations made by the Secretary under para20 
graph (1). 
21 


‘‘(b) ADOPTION OF INITIAL SET OF STANDARDS, IM22 
PLEMENTATION SPECIFICATIONS, AND CERTIFICATION 
23 
CRITERIA.— 
24 


‘‘(1) IN GENERAL.—Not later than December 

25 


31, 2009, the Secretary shall, through the rule-

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424 

1 


making process described in section 3004(a), adopt 

2 


an initial set of standards, implementation specifica


3 


tions, and certification criteria for the areas required 

4 


for consideration under section 3002(b)(2)(B). 

5 


‘‘(2) APPLICATION OF CURRENT STANDARDS, 
6 
IMPLEMENTATION SPECIFICATIONS, AND CERTIFI7 
CATION CRITERIA.—The standards, implementation 
8 
specifications, and certification criteria adopted be9 
fore the date of the enactment of this title through 
10 
the process existing through the Office of the Na11 
tional Coordinator for Health Information Tech12 
nology may be applied towards meeting the require13 
ment of paragraph (1). 
14 
‘‘SEC. 3005. APPLICATION AND USE OF ADOPTED STAND15 
ARDS AND IMPLEMENTATION SPECIFICA16 
TIONS BY FEDERAL AGENCIES. 
17 
‘‘For requirements relating to the application and use 
18 
by Federal agencies of the standards and implementation 
19 
specifications adopted under section 3004, see section 
20 
4111 of the HITECH Act. 
21 
‘‘SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPT22 
ED STANDARDS AND IMPLEMENTATION 
23 


SPECIFICATIONS BY PRIVATE ENTITIES. 

24 


‘‘(a) IN GENERAL.—Except as provided under section 
25 
4112 of the HITECH Act, any standard or implementa


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1 
tion specification adopted under section 3004 shall be vol2 
untary with respect to private entities. 
3 


‘‘(b) RULE OF CONSTRUCTION.—Nothing in this sub4 
title shall be construed to require that a private entity that 
5 
enters into a contract with the Federal Government apply 
6 
or use the standards and implementation specifications 
7 
adopted under section 3004 with respect to activities not 
8 
related to the contract. 
9 
‘‘SEC. 3007. FEDERAL HEALTH INFORMATION TECH10 
NOLOGY. 
11 
‘‘(a) IN GENERAL.—The National Coordinator shall 
12 
support the development, routine updating, and provision 
13 
of qualified EHR technology (as defined in section 3000) 
14 
consistent with subsections (b) and (c) unless the Sec15 
retary determines that the needs and demands of pro16 
viders are being substantially and adequately met through 
17 
the marketplace. 
18 
‘‘(b) CERTIFICATION.—In making such EHR tech19 
nology publicly available, the National Coordinator shall 
20 
ensure that the qualified EHR technology described in 
21 
subsection (a) is certified under the program developed 
22 
under section 3001(c)(3) to be in compliance with applica23 
ble standards adopted under section 3003(a). 
24 


‘‘(c) AUTHORIZATION TO CHARGE A NOMINAL 
25 
FEE.—The National Coordinator may impose a nominal 

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1 
fee for the adoption by a health care provider of the health 
2 
information technology system developed or approved 
3 
under subsection (a) and (b). Such fee shall take into ac4 
count the financial circumstances of smaller providers, low 
5 
income providers, and providers located in rural or other 
6 
medically underserved areas. 
7 
‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec8 
tion shall be construed to require that a private or govern9 
ment entity adopt or use the technology provided under 
10 
this section. 
11 
‘‘SEC. 3008. TRANSITIONS. 
12 
‘‘(a) ONCHIT.—To the extent consistent with sec13 
tion 3001, all functions, personnel, assets, liabilities, and 
14 
administrative actions applicable to the National Coordi15 
nator for Health Information Technology appointed under 
16 
Executive Order 13335 or the Office of such National Co17 
ordinator on the date before the date of the enactment 
18 
of this title shall be transferred to the National Coordi19 
nator appointed under section 3001(a) and the Office of 
20 
such National Coordinator as of the date of the enactment 
21 
of this title. 
22 


‘‘(b) AHIC.— 

23 


‘‘(1) To the extent consistent with sections 

24 


3002 and 3003, all functions, personnel, assets, and 

25 


liabilities applicable to the AHIC Successor, Inc. 

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1 


doing business as the National eHealth Collaborative 

2 


as of the day before the date of the enactment of 

3 


this title shall be transferred to the HIT Policy 

4 


Committee or the HIT Standards Committee, estab


5 


lished under section 3002(a) or 3003(a), as appro6 
priate, as of the date of the enactment of this title. 
7 
‘‘(2) In carrying out section 3003(b)(1)(A), 
8 
until recommendations are made by the HIT Policy 
9 
Committee, recommendations of the HIT Standards 
10 
Committee shall be consistent with the most recent 
11 
recommendations made by such AHIC Successor, 
12 
Inc. 
13 
‘‘(c) RULES OF CONSTRUCTION.— 
14 
‘‘(1) ONCHIT.—Nothing in section 3001 or 
15 
subsection (a) shall be construed as requiring the 
16 
creation of a new entity to the extent that the Office 
17 
of the National Coordinator for Health Information 
18 
Technology established pursuant to Executive Order 
19 
13335 is consistent with the provisions of section 
20 
3001. 
21 


‘‘(2) AHIC.—Nothing in sections 3002 or 3003 

22 


or subsection (b) shall be construed as prohibiting 

23 


the AHIC Successor, Inc. doing business as the Na


24 


tional eHealth Collaborative from modifying its char


25 


ter, duties, membership, and any other structure or 

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1 


function required to be consistent with section 3002 

2 


and 3003 in a manner that would permit the Sec


3 


retary to choose to recognize such AHIC Successor, 

4 


Inc. as the HIT Policy Committee or the HIT 

5 


Standards Committee. 

6 
‘‘SEC. 3009. RELATION TO HIPAA PRIVACY AND SECURITY 
7 
LAW. 
8 
‘‘(a) IN GENERAL.—With respect to the relation of 
9 
this title to HIPAA privacy and security law: 
10 
‘‘(1) This title may not be construed as having 
11 
any effect on the authorities of the Secretary under 
12 
HIPAA privacy and security law. 
13 
‘‘(2) The purposes of this title include ensuring 
14 
that the health information technology standards 
15 
and implementation specifications adopted under 
16 
section 3004 take into account the requirements of 
17 
HIPAA privacy and security law. 
18 
‘‘(b) DEFINITION.—For purposes of this section, the 
19 
term ‘HIPAA privacy and security law’ means— 
20 
‘‘(1) the provisions of part C of title XI of the 
21 


Social Security Act, section 264 of the Health Insur


22 


ance Portability and Accountability Act of 1996, and 

23 


subtitle D of title IV of the HITECH Act; and 

24 


‘‘(2) regulations under such provisions. 

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1 
‘‘SEC. 3010. AUTHORIZATION FOR APPROPRIATIONS. 
2 


‘‘There is authorized to be appropriated to the Office 
3 
of the National Coordinator for Health Information Tech4 
nology to carry out this subtitle $250,000,000 for fiscal 
5 
year 2009.’’. 
6 
SEC. 4102. TECHNICAL AMENDMENT. 
7 
Section 1171(5) of the Social Security Act (42 U.S.C. 
8 
1320d) is amended by striking ‘‘or C’’ and inserting ‘‘C, 
9 
or D’’. 
10 
PART II—APPLICATION AND USE OF ADOPTED 
11 
HEALTH INFORMATION TECHNOLOGY 
12 
STANDARDS; REPORTS 
13 
SEC. 4111. COORDINATION OF FEDERAL ACTIVITIES WITH 
14 
ADOPTED STANDARDS AND IMPLEMENTA15 
TION SPECIFICATIONS. 
16 
(a) SPENDING ON HEALTH INFORMATION TECH17 
NOLOGY SYSTEMS.—As each agency (as defined in the Ex18 
ecutive Order issued on August 22, 2006, relating to pro19 
moting quality and efficient health care in Federal govern20 
ment administered or sponsored health care programs) im21 
plements, acquires, or upgrades health information tech22 
nology systems used for the direct exchange of individually 
23 
identifiable health information between agencies and with 
24 
non-Federal entities, it shall utilize, where available, 
25 
health information technology systems and products that 
26 
meet standards and implementation specifications adopted 

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1 
under section 3004 of the Public Health Service Act, as 
2 
added by section 4101. 
3 


(b) FEDERAL INFORMATION COLLECTION ACTIVI4 
TIES.—With respect to a standard or implementation 
5 
specification adopted under section 3004 of the Public 
6 
Health Service Act, as added by section 4101, the Presi7 
dent shall take measures to ensure that Federal activities 
8 
involving the broad collection and submission of health in9 
formation are consistent with such standard or implemen10 
tation specification, respectively, within three years after 
11 
the date of such adoption. 
12 
(c) APPLICATION OF DEFINITIONS.—The definitions 
13 
contained in section 3000 of the Public Health Service 
14 
Act, as added by section 4101, shall apply for purposes 
15 
of this part. 
16 
SEC. 4112. APPLICATION TO PRIVATE ENTITIES. 
17 
Each agency (as defined in such Executive Order 
18 
issued on August 22, 2006, relating to promoting quality 
19 
and efficient health care in Federal government adminis20 
tered or sponsored health care programs) shall require in 
21 
contracts or agreements with health care providers, health 
22 
plans, or health insurance issuers that as each provider, 
23 
plan, or issuer implements, acquires, or upgrades health 
24 
information technology systems, it shall utilize, where 
25 
available, health information technology systems and prod-

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1 
ucts that meet standards and implementation specifica2 
tions adopted under section 3004 of the Public Health 
3 
Service Act, as added by section 4101. 
4 
SEC. 4113. STUDY AND REPORTS. 
5 


(a) REPORT ON ADOPTION OF NATIONWIDE SYS6 
TEM.—Not later than 2 years after the date of the enact7 
ment of this Act and annually thereafter, the Secretary 
8 
of Health and Human Services shall submit to the appro9 
priate committees of jurisdiction of the House of Rep10 
resentatives and the Senate a report that— 
11 
(1) describes the specific actions that have been 
12 
taken by the Federal Government and private enti13 
ties to facilitate the adoption of a nationwide system 
14 
for the electronic use and exchange of health infor15 
mation; 
16 
(2) describes barriers to the adoption of such a 
17 
nationwide system; and 
18 
(3) contains recommendations to achieve full 
19 
implementation of such a nationwide system. 
20 
(b) REIMBURSEMENT INCENTIVE STUDY AND RE21 
PORT.— 
22 


(1) STUDY.—The Secretary of Health and 

23 


Human Services shall carry out, or contract with a 

24 


private entity to carry out, a study that examines 

25 


methods to create efficient reimbursement incentives 

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1 


for improving health care quality in Federally quali


2 


fied health centers, rural health clinics, and free 

3 


clinics. 

4 


(2) REPORT.—Not later than 2 years after the 

5 


date of the enactment of this Act, the Secretary of 
6 
Health and Human Services shall submit to the ap7 
propriate committees of jurisdiction of the House of 
8 
Representatives and the Senate a report on the 
9 
study carried out under paragraph (1). 
10 
(c) AGING SERVICES TECHNOLOGY STUDY AND RE11 
PORT.— 
12 
(1) IN GENERAL.—The Secretary of Health and 
13 
Human Services shall carry out, or contract with a 
14 
private entity to carry out, a study of matters relat15 
ing to the potential use of new aging services tech16 
nology to assist seniors, individuals with disabilities, 
17 
and their caregivers throughout the aging process. 
18 
(2) MATTERS TO BE STUDIED.—The study 
19 
under paragraph (1) shall include— 
20 
(A) an evaluation of— 
21 


(i) methods for identifying current, 

22 


emerging, and future health technology 

23 


that can be used to meet the needs of sen


24 


iors and individuals with disabilities and 

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433 

1 


their caregivers across all aging services 

2 


settings, as specified by the Secretary; 

3 


(ii) methods for fostering scientific in


4 


novation with respect to aging services 

5 


technology within the business and aca6 
demic communities; and 
7 
(iii) developments in aging services 
8 
technology in other countries that may be 
9 
applied in the United States; and 
10 
(B) identification of— 
11 
(i) barriers to innovation in aging 
12 
services technology and devising strategies 
13 
for removing such barriers; and 
14 
(ii) barriers to the adoption of aging 
15 
services technology by health care pro16 
viders and consumers and devising strate17 
gies to removing such barriers. 
18 
(3) REPORT.—Not later than 24 months after 
19 
the date of the enactment of this Act, the Secretary 
20 
shall submit to the appropriate committees of juris21 


diction of the House of Representatives and of the 

22 


Senate a report on the study carried out under para


23 


graph (1). 

24 


(4) DEFINITIONS.—For purposes of this sub25 
section: 

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1 


(A) AGING SERVICES TECHNOLOGY.—The 

2 


term ‘‘aging services technology’’ means health 

3 


technology that meets the health care needs of 

4 


seniors, individuals with disabilities, and the 

5 


caregivers of such seniors and individuals. 
6 
(B) SENIOR.—The term ‘‘senior’’ has such 
7 
meaning as specified by the Secretary. 
8 
Subtitle B—Testing of Health 
9 
Information Technology 
10 
SEC. 4201. NATIONAL INSTITUTE FOR STANDARDS AND 
11 
TECHNOLOGY TESTING. 
12 
(a) PILOT TESTING OF STANDARDS AND IMPLEMEN13 
TATION SPECIFICATIONS.—In coordination with the HIT 
14 
Standards Committee established under section 3003 of 
15 
the Public Health Service Act, as added by section 4101, 
16 
with respect to the development of standards and imple17 
mentation specifications under such section, the Director 
18 
of the National Institute for Standards and Technology 
19 
shall test such standards and implementation specifica20 
tions, as appropriate, in order to assure the efficient im21 
plementation and use of such standards and implementa22 
tion specifications. 
23 
(b) VOLUNTARY TESTING PROGRAM.—In coordina24 
tion with the HIT Standards Committee established under 
25 
section 3003 of the Public Health Service Act, as added 

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1 
by section 4101, with respect to the development of stand2 
ards and implementation specifications under such sec3 
tion, the Director of the National Institute of Standards 
4 
and Technology shall support the establishment of a con5 
formance testing infrastructure, including the develop6 
ment of technical test beds. The development of this con7 
formance testing infrastructure may include a program to 
8 
accredit independent, non-Federal laboratories to perform 
9 
testing. 
10 
SEC. 4202. RESEARCH AND DEVELOPMENT PROGRAMS. 
11 
(a) HEALTH CARE INFORMATION ENTERPRISE INTE12 
GRATION RESEARCH CENTERS.— 
13 
(1) IN GENERAL.—The Director of the National 
14 
Institute of Standards and Technology, in consulta15 
tion with the Director of the National Science Foun16 
dation and other appropriate Federal agencies, shall 
17 
establish a program of assistance to institutions of 
18 
higher education (or consortia thereof which may in19 
clude nonprofit entities and Federal Government 
20 
laboratories) to establish multidisciplinary Centers 
21 


for Health Care Information Enterprise Integration. 

22 


(2) REVIEW; COMPETITION.—Grants shall be 

23 


awarded under this subsection on a merit-reviewed, 

24 


competitive basis. 

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1 


(3) PURPOSE.—The purposes of the Centers de


2 


scribed in paragraph (1) shall be— 

3 


(A) to generate innovative approaches to 

4 


health care information enterprise integration 

5 


by conducting cutting-edge, multidisciplinary 
6 
research on the systems challenges to health 
7 
care delivery; and 
8 
(B) the development and use of health in9 
formation technologies and other complemen10 
tary fields. 
11 
(4) RESEARCH AREAS.—Research areas may in12 
clude— 
13 
(A) interfaces between human information 
14 
and communications technology systems; 
15 
(B) voice-recognition systems; 
16 
(C) software that improves interoperability 
17 
and connectivity among health information sys18 
tems; 
19 
(D) software dependability in systems crit20 
ical to health care delivery; 
21 


(E) measurement of the impact of informa


22 


tion technologies on the quality and productivity 

23 


of health care; 

24 


(F) health information enterprise manage25 
ment; 

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1 


(G) health information technology security 

2 


and integrity; and 

3 


(H) relevant health information technology 

4 


to reduce medical errors. 

5 


(5) APPLICATIONS.—An institution of higher 
6 
education (or a consortium thereof) seeking funding 
7 
under this subsection shall submit an application to 
8 
the Director of the National Institute of Standards 
9 
and Technology at such time, in such manner, and 
10 
containing such information as the Director may re11 
quire. The application shall include, at a minimum, 
12 
a description of— 
13 
(A) the research projects that will be un14 
dertaken by the Center established pursuant to 
15 
assistance under paragraph (1) and the respec16 
tive contributions of the participating entities; 
17 
(B) how the Center will promote active col18 
laboration among scientists and engineers from 
19 
different disciplines, such as information tech20 
nology, biologic sciences, management, social 
21 


sciences, and other appropriate disciplines; 

22 


(C) technology transfer activities to dem


23 


onstrate and diffuse the research results, tech


24 


nologies, and knowledge; and 

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438 

1 


(D) how the Center will contribute to the 

2 


education and training of researchers and other 

3 


professionals in fields relevant to health infor


4 


mation enterprise integration. 

5 


(b) NATIONAL INFORMATION TECHNOLOGY RE6 
SEARCH AND DEVELOPMENT PROGRAM.—The National 
7 
High-Performance Computing Program established by 
8 
section 101 of the High-Performance Computing Act of 
9 
1991 (15 U.S.C. 5511) shall coordinate Federal research 
10 
and development programs related to the development and 
11 
deployment of health information technology, including ac12 
tivities related to— 
13 
(1) computer infrastructure; 
14 
(2) data security; 
15 
(3) development of large-scale, distributed, reli16 
able computing systems; 
17 
(4) wired, wireless, and hybrid high-speed net18 
working; 
19 
(5) development of software and software-inten20 
sive systems; 
21 


(6) human-computer interaction and informa


22 


tion management technologies; and 

23 


(7) the social and economic implications of in


24 


formation technology. 

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1 


Subtitle C—Incentives for the Use 

2 


of Health Information Technology 

3 


PART I—GRANTS AND LOANS FUNDING 
4 
SEC. 4301. GRANT, LOAN, AND DEMONSTRATION PRO5 


GRAMS. 

6 
Title XXX of the Public Health Service Act, as added 

7 
by section 4101, is amended by adding at the end the fol


8 
lowing new subtitle: 

9 
‘‘Subtitle B—Incentives for the Use 
10 
of Health Information Technology 
11 
‘‘SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE 
12 
HEALTH INFORMATION TECHNOLOGY INFRA13 
STRUCTURE. 
14 
‘‘(a) IN GENERAL.—The Secretary shall, using 
15 
amounts appropriated under section 3018, invest in the 
16 
infrastructure necessary to allow for and promote the elec17 
tronic exchange and use of health information for each 
18 
individual in the United States consistent with the goals 
19 
outlined in the strategic plan developed by the National 
20 
Coordinator (and as available) under section 3001. To the 
21 
greatest extent practicable, the Secretary shall ensure that 
22 
any funds so appropriated shall be used for the acquisition 
23 
of health information technology that meets standards and 
24 
certification criteria adopted before the date of the enact25 
ment of this title until such date as the standards are 

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1 
adopted under section 3004. The Secretary shall invest 
2 
funds through the different agencies with expertise in such 
3 
goals, such as the Office of the National Coordinator for 
4 
Health Information Technology, the Health Resources and 
5 
Services Administration, the Agency for Healthcare Re6 
search and Quality, the Centers of Medicare & Medicaid 
7 
Services, the Centers for Disease Control and Prevention, 
8 
and the Indian Health Service to support the following: 
9 
‘‘(1) Health information technology architecture 
10 
that will support the nationwide electronic exchange 
11 
and use of health information in a secure, private, 
12 
and accurate manner, including connecting health 
13 
information exchanges, and which may include up14 
dating and implementing the infrastructure nec15 
essary within different agencies of the Department 
16 
of Health and Human Services to support the elec17 
tronic use and exchange of health information. 
18 
‘‘(2) Development and adoption of appropriate 
19 
certified electronic health records for categories of 
20 
providers, as defined in section 3000, not eligible for 
21 


support under title XVIII or XIX of the Social Secu


22 


rity Act for the adoption of such records. 

23 


‘‘(3) Training on and dissemination of informa


24 


tion on best practices to integrate health information 

25 


technology, including electronic health records, into 

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1 


a provider’s delivery of care, consistent with best 

2 


practices learned from the Health Information Tech


3 


nology Research Center developed under section 

4 


3012(b), including community health centers receiv


5 


ing assistance under section 330, covered entities 
6 
under section 340B, and providers participating in 
7 
one or more of the programs under titles XVIII, 
8 
XIX, and XXI of the Social Security Act (relating 
9 
to Medicare, Medicaid, and the State Children’s 
10 
Health Insurance Program). 
11 
‘‘(4) Infrastructure and tools for the promotion 
12 
of telemedicine, including coordination among Fed13 
eral agencies in the promotion of telemedicine. 
14 
‘‘(5) Promotion of the interoperability of clinical 
15 
data repositories or registries. 
16 
‘‘(6) Promotion of technologies and best prac17 
tices that enhance the protection of health informa18 
tion by all holders of individually identifiable health 
19 
information. 
20 
‘‘(7) Improvement and expansion of the use of 
21 


health information technology by public health de


22 


partments. 

23 


‘‘(8) Provision of $300 million to support re


24 


gional or sub-national efforts towards health infor


25 


mation exchange. 

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1 


‘‘(b) COORDINATION.—The Secretary shall ensure 
2 
funds under this section are used in a coordinated manner 
3 
with other health information promotion activities. 
4 
‘‘(c) ADDITIONAL USE OF FUNDS.—In addition to 
5 
using funds as provided in subsection (a), the Secretary 
6 
may use amounts appropriated under section 3018 to 
7 
carry out health information technology activities that are 
8 
provided for under laws in effect on the date of the enact9 
ment of this title. 
10 
‘‘SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLE11 
MENTATION ASSISTANCE. 
12 
‘‘(a) HEALTH INFORMATION TECHNOLOGY EXTEN13 
SION PROGRAM.—To assist health care providers to adopt, 
14 
implement, and effectively use certified EHR technology 
15 
that allows for the electronic exchange and use of health 
16 
information, the Secretary, acting through the Office of 
17 
the National Coordinator, shall establish a health informa18 
tion technology extension program to provide health infor19 
mation technology assistance services to be carried out 
20 
through the Department of Health and Human Services. 
21 
The National Coordinator shall consult with other Federal 
22 
agencies with demonstrated experience and expertise in in23 
formation technology services, such as the National Insti24 
tute of Standards and Technology, in developing and im25 
plementing this program. 

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1 
‘‘(b) HEALTH INFORMATION TECHNOLOGY RE2 
SEARCH CENTER.— 
3 


‘‘(1) IN GENERAL.—The Secretary shall create 

4 


a Health Information Technology Research Center 

5 


(in this section referred to as the ‘Center’) to pro6 
vide technical assistance and develop or recognize 
7 
best practices to support and accelerate efforts to 
8 
adopt, implement, and effectively utilize health infor9 
mation technology that allows for the electronic ex10 
change and use of information in compliance with 
11 
standards, implementation specifications, and certifi12 
cation criteria adopted under section 3004. 
13 
‘‘(2) INPUT.—The Center shall incorporate 
14 
input from— 
15 
‘‘(A) other Federal agencies with dem16 
onstrated experience and expertise in informa17 
tion technology services such as the National 
18 
Institute of Standards and Technology; 
19 
‘‘(B) users of health information tech20 
nology, such as providers and their support and 
21 


clerical staff and others involved in the care and 

22 


care coordination of patients, from the health 

23 


care and health information technology indus24 
try; and 
25 


‘‘(C) others as appropriate. 

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1 


‘‘(3) PURPOSES.—The purposes of the Center 

2 


are to— 

3 


‘‘(A) provide a forum for the exchange of 

4 


knowledge and experience; 

5 


‘‘(B) accelerate the transfer of lessons 
6 
learned from existing public and private sector 
7 
initiatives, including those currently receiving 
8 
Federal financial support; 
9 
‘‘(C) assemble, analyze, and widely dis10 
seminate evidence and experience related to the 
11 
adoption, implementation, and effective use of 
12 
health information technology that allows for 
13 
the electronic exchange and use of information 
14 
including through the regional centers described 
15 
in subsection (c); 
16 
‘‘(D) provide technical assistance for the 
17 
establishment and evaluation of regional and 
18 
local health information networks to facilitate 
19 
the electronic exchange of information across 
20 
health care settings and improve the quality of 
21 


health care; 

22 


‘‘(E) provide technical assistance for the 

23 


development and dissemination of solutions to 

24 


barriers to the exchange of electronic health in


25 


formation; and 

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445 


1 


‘‘(F) learn about effective strategies to 

2 


adopt and utilize health information technology 

3 


in medically underserved communities. 
4 
‘‘(c) HEALTH INFORMATION TECHNOLOGY RE5 
GIONAL EXTENSION CENTERS.— 
6 
‘‘(1) IN GENERAL.—The Secretary shall provide 
7 
assistance for the creation and support of regional 
8 
centers (in this subsection referred to as ‘regional 
9 
centers’) to provide technical assistance and dissemi10 
nate best practices and other information learned 
11 
from the Center to support and accelerate efforts to 
12 
adopt, implement, and effectively utilize health infor13 
mation technology that allows for the electronic ex14 
change and use of information in compliance with 
15 
standards, implementation specifications, and certifi16 
cation criteria adopted under section 3004. Activities 
17 
conducted under this subsection shall be consistent 
18 
with the strategic plan developed by the National 
19 
Coordinator, (and, as available) under section 3001. 
20 
‘‘(2) AFFILIATION.—Regional centers shall be 
21 


affiliated with any United States-based nonprofit in


22 


stitution or organization, or group thereof, that ap


23 


plies and is awarded financial assistance under this 

24 


section. Individual awards shall be decided on the 

25 


basis of merit. 

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1 


‘‘(3) OBJECTIVE.—The objective of the regional 

2 


centers is to enhance and promote the adoption of 

3 


health information technology through— 

4 


‘‘(A) assistance with the implementation, 

5 


effective use, upgrading, and ongoing mainte6 
nance of health information technology, includ7 
ing electronic health records, to healthcare pro8 
viders nationwide; 
9 
‘‘(B) broad participation of individuals 
10 
from industry, universities, and State govern11 
ments; 
12 
‘‘(C) active dissemination of best practices 
13 
and research on the implementation, effective 
14 
use, upgrading, and ongoing maintenance of 
15 
health information technology, including elec16 
tronic health records, to health care providers 
17 
in order to improve the quality of healthcare 
18 
and protect the privacy and security of health 
19 
information; 
20 
‘‘(D) participation, to the extent prac21 


ticable, in health information exchanges; and 

22 


‘‘(E) utilization, when appropriate, of the 

23 


expertise and capability that exists in Federal 

24 


agencies other than the Department; and 

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1 
‘‘(F) integration of health information 
2 


technology, including electronic health records, 

3 


into the initial and ongoing training of health 

4 


professionals and others in the healthcare in


5 


dustry that would be instrumental to improving 
6 
the quality of healthcare through the smooth 
7 
and accurate electronic use and exchange of 
8 
health information. 
9 
‘‘(4) REGIONAL ASSISTANCE.—Each regional 
10 
center shall aim to provide assistance and education 
11 
to all providers in a region, but shall prioritize any 
12 
direct assistance first to the following: 
13 
‘‘(A) Public or not-for-profit hospitals or 
14 
critical access hospitals. 
15 
‘‘(B) Federally qualified health centers (as 
16 
defined in section 1861(aa)(4) of the Social Se17 
curity Act). 
18 
‘‘(C) Entities that are located in rural and 
19 
other areas that serve uninsured, underinsured, 
20 
and medically underserved individuals (regard21 


less of whether such area is urban or rural). 

22 


‘‘(D) Individual or small group practices 

23 


(or a consortium thereof) that are primarily fo


24 


cused on primary care. 

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1 


‘‘(5) FINANCIAL SUPPORT.—The Secretary may 

2 


provide financial support to any regional center cre


3 


ated under this subsection for a period not to exceed 

4 


four years. The Secretary may not provide more 

5 


than 50 percent of the capital and annual operating 
6 
and maintenance funds required to create and main7 
tain such a center, except in an instance of national 
8 
economic conditions which would render this cost9 
share requirement detrimental to the program and 
10 
upon notification to Congress as to the justification 
11 
to waive the cost-share requirement. 
12 
‘‘(6) NOTICE OF PROGRAM DESCRIPTION AND 
13 
AVAILABILITY OF FUNDS.—The Secretary shall pub14 
lish in the Federal Register, not later than 90 days 
15 
after the date of the enactment of this title, a draft 
16 
description of the program for establishing regional 
17 
centers under this subsection. Such description shall 
18 
include the following: 
19 
‘‘(A) A detailed explanation of the program 
20 
and the programs goals. 
21 


‘‘(B) Procedures to be followed by the ap22 
plicants. 
23 


‘‘(C) Criteria for determining qualified ap24 
plicants. 

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1 


‘‘(D) Maximum support levels expected to 

2 


be available to centers under the program. 

3 


‘‘(7) APPLICATION REVIEW.—The Secretary 

4 


shall subject each application under this subsection 

5 


to merit review. In making a decision whether to ap6 
prove such application and provide financial support, 
7 
the Secretary shall consider at a minimum the mer8 
its of the application, including those portions of the 
9 
application regarding— 
10 
‘‘(A) the ability of the applicant to provide 
11 
assistance under this subsection and utilization 
12 
of health information technology appropriate to 
13 
the needs of particular categories of health care 
14 
providers; 
15 
‘‘(B) the types of service to be provided to 
16 
health care providers; 
17 
‘‘(C) geographical diversity and extent of 
18 
service area; and 
19 
‘‘(D) the percentage of funding and 
20 
amount of in-kind commitment from other 
21 
sources. 
22 


‘‘(8) BIENNIAL EVALUATION.—Each regional 

23 


center which receives financial assistance under this 

24 


subsection shall be evaluated biennially by an evalua


25 


tion panel appointed by the Secretary. Each evalua


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1 


tion panel shall be composed of private experts, none 

2 


of whom shall be connected with the center involved, 

3 


and of Federal officials. Each evaluation panel shall 

4 


measure the involved center’s performance against 

5 


the objective specified in paragraph (3). The Sec6 
retary shall not continue to provide funding to a re7 
gional center unless its evaluation is overall positive. 
8 
‘‘(9) CONTINUING SUPPORT.—After the second 
9 
year of assistance under this subsection, a regional 
10 
center may receive additional support under this 
11 
subsection if it has received positive evaluations and 
12 
a finding by the Secretary that continuation of Fed13 
eral funding to the center was in the best interest 
14 
of provision of health information technology exten15 
sion services. 
16 
‘‘SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFOR17 
MATION TECHNOLOGY. 
18 
‘‘(a) IN GENERAL.—The Secretary, acting through 
19 
the National Coordinator, shall establish a program in ac20 
cordance with this section to facilitate and expand the 
21 
electronic movement and use of health information among 
22 
organizations according to nationally recognized stand23 
ards. 
24 


‘‘(b) PLANNING GRANTS.—The Secretary may award 
25 
a grant to a State or qualified State-designated entity (as 

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1 
described in subsection (f)) that submits an application 
2 
to the Secretary at such time, in such manner, and con3 
taining such information as the Secretary may specify, for 
4 
the purpose of planning activities described in subsection 
5 
(d). 
6 
‘‘(c) IMPLEMENTATION GRANTS.—The Secretary 
7 
may award a grant to a State or qualified State designated 
8 
entity that— 
9 
‘‘(1) has submitted, and the Secretary has ap10 
proved, a plan described in subsection (e) (regardless 
11 
of whether such plan was prepared using amounts 
12 
awarded under subsection (b); and 
13 
‘‘(2) submits an application at such time, in 
14 
such manner, and containing such information as 
15 
the Secretary may specify. 
16 
‘‘(d) USE OF FUNDS.—Amounts received under a 
17 
grant under subsection (c) shall be used to conduct activi18 
ties to facilitate and expand the electronic movement and 
19 
use of health information among organizations according 
20 
to nationally recognized standards through activities that 
21 
include— 
22 


‘‘(1) enhancing broad and varied participation 

23 


in the authorized and secure nationwide electronic 

24 


use and exchange of health information; 

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452 

1 


‘‘(2) identifying State or local resources avail


2 


able towards a nationwide effort to promote health 

3 


information technology; 

4 


‘‘(3) complementing other Federal grants, pro


5 


grams, and efforts towards the promotion of health 
6 
information technology; 
7 
‘‘(4) providing technical assistance for the de8 
velopment and dissemination of solutions to barriers 
9 
to the exchange of electronic health information; 
10 
‘‘(5) promoting effective strategies to adopt and 
11 
utilize health information technology in medically 
12 
underserved communities; 
13 
‘‘(6) assisting patients in utilizing health infor14 
mation technology; 
15 
‘‘(7) encouraging clinicians to work with Health 
16 
Information Technology Regional Extension Centers 
17 
as described in section 3012, to the extent they are 
18 
available and valuable; 
19 
‘‘(8) supporting public health agencies’ author20 
ized use of and access to electronic health informa21 
tion; 
22 


‘‘(9) promoting the use of electronic health 

23 


records for quality improvement including through 

24 


quality measures reporting; and 

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453 

1 


‘‘(10) such other activities as the Secretary may 

2 


specify. 

3 


‘‘(e) PLAN.— 

4 


‘‘(1) IN GENERAL.—A plan described in this 

5 


subsection is a plan that describes the activities to 
6 
be carried out by a State or by the qualified State7 
designated entity within such State to facilitate and 
8 
expand the electronic movement and use of health 
9 
information among organizations according to na10 
tionally recognized standards and implementation 
11 
specifications. 
12 
‘‘(2) REQUIRED ELEMENTS.—A plan described 
13 
in paragraph (1) shall— 
14 
‘‘(A) be pursued in the public interest; 
15 
‘‘(B) be consistent with the strategic plan 
16 
developed by the National Coordinator, (and, as 
17 
available) under section 3001; 
18 
‘‘(C) include a description of the ways the 
19 
State or qualified State-designated entity will 
20 
carry out the activities described in subsection 
21 
(b); and 
22 


‘‘(D) contain such elements as the Sec


23 


retary may require. 

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1 


‘‘(f) QUALIFIED STATE-DESIGNATED ENTITY.—For 
2 
purposes of this section, to be a qualified State-designated 
3 
entity, with respect to a State, an entity shall— 
4 


‘‘(1) be designated by the State as eligible to 

5 


receive awards under this section; 
6 
‘‘(2) be a not-for-profit entity with broad stake7 
holder representation on its governing board; 
8 
‘‘(3) demonstrate that one of its principal goals 
9 
is to use information technology to improve health 
10 
care quality and efficiency through the authorized 
11 
and secure electronic exchange and use of health in12 
formation; 
13 
‘‘(4) adopt nondiscrimination and conflict of in14 
terest policies that demonstrate a commitment to 
15 
open, fair, and nondiscriminatory participation by 
16 
stakeholders; and 
17 
‘‘(5) conform to such other requirements as the 
18 
Secretary may establish. 
19 
‘‘(g) REQUIRED CONSULTATION.—In carrying out 
20 
activities described in subsections (b) and (c), a State or 
21 
qualified State-designated entity shall consult with and 
22 
consider the recommendations of— 
23 


‘‘(1) health care providers (including providers 

24 


that provide services to low income and underserved 

25 


populations); 

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1 


‘‘(2) health plans; 

2 


‘‘(3) patient or consumer organizations that 

3 


represent the population to be served; 

4 


‘‘(4) health information technology vendors; 

5 


‘‘(5) health care purchasers and employers; 
6 
‘‘(6) public health agencies; 
7 
‘‘(7) health professions schools, universities and 
8 
colleges; 
9 
‘‘(8) clinical researchers; 
10 
‘‘(9) other users of health information tech11 
nology such as the support and clerical staff of pro12 
viders and others involved in the care and care co13 
ordination of patients; and 
14 
‘‘(10) such other entities, as may be determined 
15 
appropriate by the Secretary. 
16 
‘‘(h) CONTINUOUS IMPROVEMENT.—The Secretary 
17 
shall annually evaluate the activities conducted under this 
18 
section and shall, in awarding grants under this section, 
19 
implement the lessons learned from such evaluation in a 
20 
manner so that awards made subsequent to each such 
21 
evaluation are made in a manner that, in the determina22 
tion of the Secretary, will lead towards the greatest im23 
provement in quality of care, decrease in costs, and the 
24 
most effective authorized and secure electronic exchange 
25 
of health information. 

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1 


‘‘(i) REQUIRED MATCH.— 

2 


‘‘(1) IN GENERAL.—For a fiscal year (begin


3 


ning with fiscal year 2011), the Secretary may not 

4 


make a grant under this section to a State unless 

5 


the State agrees to make available non-Federal con6 
tributions (which may include in-kind contributions) 
7 
toward the costs of a grant awarded under sub8 
section (c) in an amount equal to— 
9 
‘‘(A) for fiscal year 2011, not less than $1 
10 
for each $10 of Federal funds provided under 
11 
the grant; 
12 
‘‘(B) for fiscal year 2012, not less than $1 
13 
for each $7 of Federal funds provided under 
14 
the grant; and 
15 
‘‘(C) for fiscal year 2013 and each subse16 
quent fiscal year, not less than $1 for each $3 
17 
of Federal funds provided under the grant. 
18 
‘‘(2) AUTHORITY TO REQUIRE STATE MATCH 
19 
FOR FISCAL YEARS BEFORE FISCAL YEAR 2011.—For 
20 
any fiscal year during the grant program under this 
21 


section before fiscal year 2011, the Secretary may 

22 


determine the extent to which there shall be required 

23 


a non-Federal contribution from a State receiving a 

24 


grant under this section. 

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1 
‘‘SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN 
2 


TRIBES FOR THE DEVELOPMENT OF LOAN 
3 
PROGRAMS TO FACILITATE THE WIDE4 


SPREAD ADOPTION OF CERTIFIED EHR TECH


5 


NOLOGY. 

6 
‘‘(a) IN GENERAL.—The National Coordinator may 
7 
award competitive grants to eligible entities for the estab8 
lishment of programs for loans to health care providers 
9 
to conduct the activities described in subsection (e). 
10 
‘‘(b) ELIGIBLE ENTITY DEFINED.—For purposes of 
11 
this subsection, the term ‘eligible entity’ means a State 
12 
or Indian tribe (as defined in the Indian Self-Determina13 
tion and Education Assistance Act) that— 
14 
‘‘(1) submits to the National Coordinator an 
15 
application at such time, in such manner, and con16 
taining such information as the National Coordi17 
nator may require; 
18 
‘‘(2) submits to the National Coordinator a 
19 
strategic plan in accordance with subsection (d) and 
20 
provides to the National Coordinator assurances that 
21 


the entity will update such plan annually in accord


22 


ance with such subsection; 

23 


‘‘(3) provides assurances to the National Coor


24 


dinator that the entity will establish a Loan Fund 

25 


in accordance with subsection (c); 

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1 


‘‘(4) provides assurances to the National Coor


2 


dinator that the entity will not provide a loan from 

3 


the Loan Fund to a health care provider unless the 

4 


provider agrees to— 

5 


‘‘(A) submit reports on quality measures 
6 
adopted by the Federal Government (by not 
7 
later than 90 days after the date on which such 
8 
measures are adopted), to— 
9 
‘‘(i) the Administrator of the Centers 
10 
for Medicare & Medicaid Services (or his 
11 
or her designee), in the case of an entity 
12 
participating in the Medicare program 
13 
under title XVIII of the Social Security 
14 
Act or the Medicaid program under title 
15 
XIX of such Act; or 
16 
‘‘(ii) the Secretary in the case of other 
17 
entities; 
18 
‘‘(B) demonstrate to the satisfaction of the 
19 
Secretary (through criteria established by the 
20 
Secretary) that any certified EHR technology 
21 


purchased, improved, or otherwise financially 

22 


supported under a loan under this section is 

23 


used to exchange health information in a man


24 


ner that, in accordance with law and standards 

25 


(as adopted under section 3004) applicable to 

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1 


the exchange of information, improves the qual


2 


ity of health care, such as promoting care co


3 


ordination; and 

4 


‘‘(C) comply with such other requirements 

5 


as the entity or the Secretary may require; 
6 
‘‘(D) include a plan on how health care 
7 
providers involved intend to maintain and sup8 
port the certified EHR technology over time; 
9 
‘‘(E) include a plan on how the health care 
10 
providers involved intend to maintain and sup11 
port the certified EHR technology that would 
12 
be purchased with such loan, including the type 
13 
of resources expected to be involved and any 
14 
such other information as the State or Indian 
15 
Tribe, respectively, may require; and 
16 
‘‘(5) agrees to provide matching funds in ac17 
cordance with subsection (h). 
18 
‘‘(c) ESTABLISHMENT OF FUND.—For purposes of 
19 
subsection (b)(3), an eligible entity shall establish a cer20 
tified EHR technology loan fund (referred to in this sub21 
section as a ‘Loan Fund’) and comply with the other re22 
quirements contained in this section. A grant to an eligible 
23 
entity under this section shall be deposited in the Loan 
24 
Fund established by the eligible entity. No funds author25 
ized by other provisions of this title to be used for other 

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1 
purposes specified in this title shall be deposited in any 
2 
Loan Fund. 
3 


‘‘(d) STRATEGIC PLAN.— 

4 


‘‘(1) IN GENERAL.—For purposes of subsection 

5 


(b)(2), a strategic plan of an eligible entity under 
6 
this subsection shall identify the intended uses of 
7 
amounts available to the Loan Fund of such entity. 
8 
‘‘(2) CONTENTS.—A strategic plan under para9 
graph (1), with respect to a Loan Fund of an eligi10 
ble entity, shall include for a year the following: 
11 
‘‘(A) A list of the projects to be assisted 
12 
through the Loan Fund during such year. 
13 
‘‘(B) A description of the criteria and 
14 
methods established for the distribution of 
15 
funds from the Loan Fund during the year. 
16 
‘‘(C) A description of the financial status 
17 
of the Loan Fund as of the date of submission 
18 
of the plan. 
19 
‘‘(D) The short-term and long-term goals 
20 
of the Loan Fund. 
21 


‘‘(e) USE OF FUNDS.—Amounts deposited in a Loan 
22 
Fund, including loan repayments and interest earned on 
23 
such amounts, shall be used only for awarding loans or 
24 
loan guarantees, making reimbursements described in sub25 
section (g)(4)(A), or as a source of reserve and security 

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1 
for leveraged loans, the proceeds of which are deposited 
2 
in the Loan Fund established under subsection (c). Loans 
3 
under this section may be used by a health care provider 
4 
to— 
5 


‘‘(1) facilitate the purchase of certified EHR 
6 
technology; 
7 
‘‘(2) enhance the utilization of certified EHR 
8 
technology; 
9 
‘‘(3) train personnel in the use of such tech10 
nology; or 
11 
‘‘(4) improve the secure electronic exchange of 
12 
health information. 
13 
‘‘(f) TYPES OF ASSISTANCE.—Except as otherwise 
14 
limited by applicable State law, amounts deposited into a 
15 
Loan Fund under this section may only be used for the 
16 
following: 
17 
‘‘(1) To award loans that comply with the fol18 
lowing: 
19 
‘‘(A) The interest rate for each loan shall 
20 
not exceed the market interest rate. 
21 


‘‘(B) The principal and interest payments 

22 


on each loan shall commence not later than 1 

23 


year after the date the loan was awarded, and 

24 


each loan shall be fully amortized not later than 

25 


10 years after the date of the loan. 

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1 


‘‘(C) The Loan Fund shall be credited with 

2 


all payments of principal and interest on each 

3 


loan awarded from the Loan Fund. 

4 


‘‘(2) To guarantee, or purchase insurance for, 

5 


a local obligation (all of the proceeds of which fi6 
nance a project eligible for assistance under this 
7 
subsection) if the guarantee or purchase would im8 
prove credit market access or reduce the interest 
9 
rate applicable to the obligation involved. 
10 
‘‘(3) As a source of revenue or security for the 
11 
payment of principal and interest on revenue or gen12 
eral obligation bonds issued by the eligible entity if 
13 
the proceeds of the sale of the bonds will be depos14 
ited into the Loan Fund. 
15 
‘‘(4) To earn interest on the amounts deposited 
16 
into the Loan Fund. 
17 
‘‘(5) To make reimbursements described in sub18 
section (g)(4)(A). 
19 
‘‘(g) ADMINISTRATION OF LOAN FUNDS.— 
20 
‘‘(1) COMBINED FINANCIAL ADMINISTRATION.— 
21 


An eligible entity may (as a convenience and to 

22 


avoid unnecessary administrative costs) combine, in 

23 


accordance with applicable State law, the financial 

24 


administration of a Loan Fund established under 

25 


this subsection with the financial administration of 

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1 


any other revolving fund established by the entity if 

2 


otherwise not prohibited by the law under which the 

3 


Loan Fund was established. 

4 


‘‘(2) COST OF ADMINISTERING FUND.—Each el


5 


igible entity may annually use not to exceed 4 per6 
cent of the funds provided to the entity under a 
7 
grant under this section to pay the reasonable costs 
8 
of the administration of the programs under this 
9 
section, including the recovery of reasonable costs 
10 
expended to establish a Loan Fund which are in11 
curred after the date of the enactment of this title. 
12 
‘‘(3) GUIDANCE AND REGULATIONS.—The Na13 
tional Coordinator shall publish guidance and pro14 
mulgate regulations as may be necessary to carry 
15 
out the provisions of this section, including— 
16 
‘‘(A) provisions to ensure that each eligible 
17 
entity commits and expends funds allotted to 
18 
the entity under this section as efficiently as 
19 
possible in accordance with this title and appli20 
cable State laws; and 
21 


‘‘(B) guidance to prevent waste, fraud, and 
22 
abuse. 
23 


‘‘(4) PRIVATE SECTOR CONTRIBUTIONS.— 

24 


‘‘(A) IN GENERAL.—A Loan Fund estab


25 


lished under this section may accept contribu


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464 

1 


tions from private sector entities, except that 

2 


such entities may not specify the recipient or 

3 


recipients of any loan issued under this sub


4 


section. An eligible entity may agree to reim


5 


burse a private sector entity for any contribu6 
tion made under this subparagraph, except that 
7 
the amount of such reimbursement may not be 
8 
greater than the principal amount of the con9 
tribution made. 
10 
‘‘(B) AVAILABILITY OF INFORMATION.— 
11 
An eligible entity shall make publicly available 
12 
the identity of, and amount contributed by, any 
13 
private sector entity under subparagraph (A) 
14 
and may issue letters of commendation or make 
15 
other awards (that have no financial value) to 
16 
any such entity. 
17 
‘‘(h) MATCHING REQUIREMENTS.— 
18 
‘‘(1) IN GENERAL.—The National Coordinator 
19 
may not make a grant under subsection (a) to an el20 
igible entity unless the entity agrees to make avail21 


able (directly or through donations from public or 

22 


private entities) non-Federal contributions in cash to 

23 


the costs of carrying out the activities for which the 

24 


grant is awarded in an amount equal to not less 

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1 


than $1 for each $5 of Federal funds provided under 

2 


the grant. 
3 
‘‘(2) DETERMINATION OF AMOUNT OF NON4 


FEDERAL CONTRIBUTION.—In determining the 

5 


amount of non-Federal contributions that an eligible 
6 
entity has provided pursuant to subparagraph (A), 
7 
the National Coordinator may not include any 
8 
amounts provided to the entity by the Federal Gov9 
ernment. 
10 
‘‘(i) EFFECTIVE DATE.—The Secretary may not 
11 
make an award under this section prior to January 1, 
12 
2010. 
13 
‘‘SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE IN14 
FORMATION TECHNOLOGY INTO CLINICAL 
15 
EDUCATION. 
16 
‘‘(a) IN GENERAL.—The Secretary may award grants 
17 
under this section to carry out demonstration projects to 
18 
develop academic curricula integrating certified EHR 
19 
technology in the clinical education of health professionals. 
20 
Such awards shall be made on a competitive basis and 
21 
pursuant to peer review. 
22 


‘‘(b) ELIGIBILITY.—To be eligible to receive a grant 
23 
under subsection (a), an entity shall— 

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1 


‘‘(1) submit to the Secretary an application at 

2 


such time, in such manner, and containing such in


3 


formation as the Secretary may require; 

4 


‘‘(2) submit to the Secretary a strategic plan 

5 


for integrating certified EHR technology in the clin6 
ical education of health professionals to reduce med7 
ical errors and enhance health care quality; 
8 
‘‘(3) be— 
9 
‘‘(A) a school of medicine, osteopathic 
10 
medicine, dentistry, or pharmacy, a graduate 
11 
program in behavioral or mental health, or any 
12 
other graduate health professions school; 
13 
‘‘(B) a graduate school of nursing or phy14 
sician assistant studies; 
15 
‘‘(C) a consortium of two or more schools 
16 
described in subparagraph (A) or (B); or 
17 
‘‘(D) an institution with a graduate med18 
ical education program in medicine, osteopathic 
19 
medicine, dentistry, pharmacy, nursing, or phy20 
sician assistance studies; 
21 


‘‘(4) provide for the collection of data regarding 

22 


the effectiveness of the demonstration project to be 

23 


funded under the grant in improving the safety of 

24 


patients, the efficiency of health care delivery, and 

25 


in increasing the likelihood that graduates of the 

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1 


grantee will adopt and incorporate certified EHR 

2 


technology, in the delivery of health care services; 
3 
and 
4 


‘‘(5) provide matching funds in accordance with 

5 


subsection (d). 
6 
‘‘(c) USE OF FUNDS.— 
7 
‘‘(1) IN GENERAL.—With respect to a grant 
8 
under subsection (a), an eligible entity shall— 
9 
‘‘(A) use grant funds in collaboration with 
10 
2 or more disciplines; and 
11 
‘‘(B) use grant funds to integrate certified 
12 
EHR technology into community-based clinical 
13 
education. 
14 
‘‘(2) LIMITATION.—An eligible entity shall not 
15 
use amounts received under a grant under sub16 
section (a) to purchase hardware, software, or serv17 
ices. 
18 
‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 
19 
provide more than 50 percent of the costs of any activity 
20 
for which assistance is provided under subsection (a), ex21 
cept in an instance of national economic conditions which 
22 
would render the cost-share requirement under this sub23 
section detrimental to the program and upon notification 
24 
to Congress as to the justification to waive the cost-share 
25 
requirement. 

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1 


‘‘(e) EVALUATION.—The Secretary shall take such 
2 
action as may be necessary to evaluate the projects funded 
3 
under this section and publish, make available, and dis4 
seminate the results of such evaluations on as wide a basis 
5 
as is practicable. 
6 
‘‘(f) REPORTS.—Not later than 1 year after the date 
7 
of enactment of this title, and annually thereafter, the Sec8 
retary shall submit to the Committee on Health, Edu9 
cation, Labor, and Pensions and the Committee on Fi10 
nance of the Senate, and the Committee on Energy and 
11 
Commerce of the House of Representatives a report 
12 
that— 
13 
‘‘(1) describes the specific projects established 
14 
under this section; and 
15 
‘‘(2) contains recommendations for Congress 
16 
based on the evaluation conducted under subsection 
17 
(e). 
18 
‘‘SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS 
19 
ON HEALTH CARE. 
20 
‘‘(a) IN GENERAL.—The Secretary, in consultation 
21 
with the Director of the National Science Foundation, 
22 
shall provide assistance to institutions of higher education 
23 
(or consortia thereof) to establish or expand medical 
24 
health informatics education programs, including certifi25 
cation, undergraduate, and masters degree programs, for 

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1 
both health care and information technology students to 
2 
ensure the rapid and effective utilization and development 
3 
of health information technologies (in the United States 
4 
health care infrastructure). 
5 


‘‘(b) ACTIVITIES.—Activities for which assistance 
6 
may be provided under subsection (a) may include the fol7 
lowing: 
8 
‘‘(1) Developing and revising curricula in med9 
ical health informatics and related disciplines. 
10 
‘‘(2) Recruiting and retaining students to the 
11 
program involved. 
12 
‘‘(3) Acquiring equipment necessary for student 
13 
instruction in these programs, including the installa14 
tion of testbed networks for student use. 
15 
‘‘(4) Establishing or enhancing bridge programs 
16 
in the health informatics fields between community 
17 
colleges and universities. 
18 
‘‘(c) PRIORITY.—In providing assistance under sub19 
section (a), the Secretary shall give preference to the fol20 
lowing: 
21 


‘‘(1) Existing education and training programs. 

22 


‘‘(2) Programs designed to be completed in less 

23 


than six months. 

24 


‘‘(d) FINANCIAL SUPPORT.—The Secretary may not 
25 
provide more than 50 percent of the costs of any activity 

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1 
for which assistance is provided under subsection (a), ex2 
cept in an instance of national economic conditions which 
3 
would render the cost-share requirement under this sub4 
section detrimental to the program and upon notification 
5 
to Congress as to the justification to waive the cost-share 
6 
requirement. 
7 
‘‘SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS. 
8 
‘‘(a) REPORTS.—The Secretary may require that an 
9 
entity receiving assistance under this subtitle shall submit 
10 
to the Secretary, not later than the date that is 1 year 
11 
after the date of receipt of such assistance, a report that 
12 
includes— 
13 
‘‘(1) an analysis of the effectiveness of the ac14 
tivities for which the entity receives such assistance, 
15 
as compared to the goals for such activities; and 
16 
‘‘(2) an analysis of the impact of the project on 
17 
health care quality and safety. 
18 
‘‘(b) REQUIREMENT TO IMPROVE QUALITY OF CARE 
19 
AND DECREASE IN COSTS.—The National Coordinator 
20 
shall annually evaluate the activities conducted under this 
21 
subtitle and shall, in awarding grants, implement the les22 
sons learned from such evaluation in a manner so that 
23 
awards made subsequent to each such evaluation are made 
24 
in a manner that, in the determination of the National 

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1 
Coordinator, will result in the greatest improvement in the 
2 
quality and efficiency of health care. 
3 
‘‘SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS. 
4 


‘‘For the purposes of carrying out this subtitle, there 
5 
is authorized to be appropriated such sums as may be nec6 
essary for each of the fiscal years 2009 through 2013. 
7 
Amounts so appropriated shall remain available until ex8 
pended.’’. 
9 
PART II—MEDICARE PROGRAM 
10 
SEC. 4311. INCENTIVES FOR ELIGIBLE PROFESSIONALS. 
11 
(a) INCENTIVE PAYMENTS.—Section 1848 of the So12 
cial Security Act (42 U.S.C. 1395w–4) is amended by add13 
ing at the end the following new subsection: 
14 
‘‘(o) INCENTIVES FOR ADOPTION AND MEANINGFUL 
15 
USE OF CERTIFIED EHR TECHNOLOGY.— 
16 
‘‘(1) INCENTIVE PAYMENTS.— 
17 
‘‘(A) IN GENERAL.—Subject to the suc18 
ceeding subparagraphs of this paragraph, with 
19 
respect to covered professional services fur20 
nished by an eligible professional during a pay21 


ment year (as defined in subparagraph (E)), if 

22 


the eligible professional is a meaningful EHR 

23 


user (as determined under paragraph (2)) for 

24 


the reporting period with respect to such year, 

25 


in addition to the amount otherwise paid under 

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1 


this part, there also shall be paid to the eligible 

2 


professional (or to an employer or facility in the 
3 
cases described in clause (A) of section 
4 


1842(b)(6)), from the Federal Supplementary 

5 


Medical Insurance Trust Fund established 
6 
under section 1841 an amount equal to 75 per7 
cent of the Secretary’s estimate (based on 
8 
claims submitted not later than 2 months after 
9 
the end of the payment year) of the allowed 
10 
charges under this part for all such covered 
11 
professional services furnished by the eligible 
12 
professional during such year. 
13 
‘‘(B) LIMITATIONS ON AMOUNTS OF IN14 
CENTIVE PAYMENTS.— 
15 
‘‘(i) IN GENERAL.—In no case shall 
16 
the amount of the incentive payment pro17 
vided under this paragraph for an eligible 
18 
professional for a payment year exceed the 
19 
applicable amount specified under this sub20 
paragraph with respect to such eligible 
21 


professional and such year. 
22 
‘‘(ii) AMOUNT.—Subject to clause 
23 


(iii), the applicable amount specified in this 

24 


subparagraph for an eligible professional is 

25 


as follows: 

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1 


‘‘(I) For the first payment year 

2 


for such professional, $15,000. 

3 


‘‘(II) For the second payment 

4 


year for such professional, $12,000. 

5 


‘‘(III) For the third payment 
6 
year for such professional, $8,000. 
7 
‘‘(IV) For the fourth payment 
8 
year for such professional, $4,000. 
9 
‘‘(V) For the fifth payment year 
10 
for such professional, $2,000. 
11 
‘‘(VI) For any succeeding pay12 
ment year for such professional, $0. 
13 
‘‘(iii) PHASE DOWN FOR ELIGIBLE 
14 
PROFESSIONALS FIRST ADOPTING EHR 
15 
AFTER 2013.—If the first payment year for 
16 
an eligible professional is after 2013, then 
17 
the amount specified in this subparagraph 
18 
for a payment year for such professional is 
19 
the same as the amount specified in clause 
20 
(ii) for such payment year for an eligible 
21 


professional whose first payment year is 

22 


2013. If the first payment year for an eli


23 


gible professional is after 2015 then the 

24 


applicable amount specified in this sub-

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474 

1 


paragraph for such professional for such 

2 


year and any subsequent year shall be $0. 
3 
‘‘(C) NON-APPLICATION TO HOSPITAL4 


BASED ELIGIBLE PROFESSIONALS.— 

5 


‘‘(i) IN GENERAL.—No incentive pay6 
ment may be made under this paragraph 
7 
in the case of a hospital-based eligible pro8 
fessional. 
9 
‘‘(ii) HOSPITAL-BASED ELIGIBLE PRO10 
FESSIONAL.—For purposes of clause (i), 
11 
the term ‘hospital-based eligible profes12 
sional’ means, with respect to covered pro13 
fessional services furnished by an eligible 
14 
professional during the reporting period for 
15 
a payment year, an eligible professional, 
16 
such as a pathologist, anesthesiologist, or 
17 
emergency physician, who furnishes sub18 
stantially all of such services in a hospital 
19 
setting (whether inpatient or outpatient) 
20 
and through the use of the facilities and 
21 


equipment, including computer equipment, 

22 


of the hospital. 

23 


‘‘(D) PAYMENT.— 
24 
‘‘(i) FORM OF PAYMENT.—The pay25 


ment under this paragraph may be in the 

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475 

1 


form of a single consolidated payment or 

2 


in the form of such periodic installments 

3 


as the Secretary may specify. 

4 


‘‘(ii) COORDINATION OF APPLICATION 
5 
OF LIMITATION FOR PROFESSIONALS IN 
6 
DIFFERENT PRACTICES.—In the case of an 
7 
eligible professional furnishing covered pro8 
fessional services in more than one practice 
9 
(as specified by the Secretary), the Sec10 
retary shall establish rules to coordinate 
11 
the incentive payments, including the ap12 
plication of the limitation on amounts of 
13 
such incentive payments under this para14 
graph, among such practices. 
15 
‘‘(iii) COORDINATION WITH MED16 
ICAID.—The Secretary shall seek, to the 
17 
maximum extent practicable, to avoid du18 
plicative requirements from Federal and 
19 
State Governments to demonstrate mean20 
ingful use of certified EHR technology 
21 


under this title and title XIX. The Sec


22 


retary may also adjust the reporting peri


23 


ods under such title and such subsections 

24 


in order to carry out this clause. 

25 


‘‘(E) PAYMENT YEAR DEFINED.— 

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476 

1 


‘‘(i) IN GENERAL.—For purposes of 

2 


this subsection, the term ‘payment year’ 

3 


means a year beginning with 2011. 

4 


‘‘(ii) FIRST, SECOND, ETC. PAYMENT 
5 
YEAR.—The term ‘first payment year’ 
6 
means, with respect to covered professional 
7 
services furnished by an eligible profes8 
sional, the first year for which an incentive 
9 
payment is made for such services under 
10 
this subsection. The terms ‘second pay11 
ment year’, ‘third payment year’, ‘fourth 
12 
payment year’, and ‘fifth payment year’ 
13 
mean, with respect to covered professional 
14 
services furnished by such eligible profes15 
sional, each successive year immediately 
16 
following the first payment year for such 
17 
professional. 
18 
‘‘(2) MEANINGFUL EHR USER.— 
19 
‘‘(A) IN GENERAL.—For purposes of para20 
graph (1), an eligible professional shall be 
21 


treated as a meaningful EHR user for a report


22 


ing period for a payment year (or, for purposes 

23 


of subsection (a)(7), for a reporting period 

24 


under such subsection for a year) if each of the 

25 


following requirements is met: 

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477 

1 


‘‘(i) MEANINGFUL USE OF CERTIFIED 

2 


EHR TECHNOLOGY.—The eligible profes


3 


sional demonstrates to the satisfaction of 

4 


the Secretary, in accordance with subpara


5 


graph (C)(i), that during such period the 
6 
professional is using certified EHR tech7 
nology in a meaningful manner, which 
8 
shall include the use of electronic pre9 
scribing as determined to be appropriate 
10 
by the Secretary. 
11 
‘‘(ii) INFORMATION EXCHANGE.—The 
12 
eligible professional demonstrates to the 
13 
satisfaction of the Secretary, in accordance 
14 
with subparagraph (C)(i), that during such 
15 
period such certified EHR technology is 
16 
connected in a manner that provides, in 
17 
accordance with law and standards appli18 
cable to the exchange of information, for 
19 
the electronic exchange of health informa20 
tion to improve the quality of health care, 
21 


such as promoting care coordination. 
22 
‘‘(iii) REPORTING ON MEASURES 
23 
USING EHR.—Subject to subparagraph 
24 


(B)(ii) and using such certified EHR tech


25 


nology, the eligible professional submits in-

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478 

1 


formation for such period, in a form and 

2 


manner specified by the Secretary, on such 

3 


clinical quality measures and such other 

4 


measures as selected by the Secretary 

5 


under subparagraph (B)(i). 
6 
The Secretary may provide for the use of alter7 
native means for meeting the requirements of 
8 
clauses (i), (ii), and (iii) in the case of an eligi9 
ble professional furnishing covered professional 
10 
services in a group practice (as defined by the 
11 
Secretary). The Secretary shall seek to improve 
12 
the use of electronic health records and health 
13 
care quality over time by requiring more strin14 
gent measures of meaningful use selected under 
15 
this paragraph. 
16 
‘‘(B) REPORTING ON MEASURES.— 
17 
‘‘(i) SELECTION.—The Secretary shall 
18 
select measures for purposes of subpara19 
graph (A)(iii) but only consistent with the 
20 
following: 
21 


‘‘(I) The Secretary shall provide 

22 


preference to clinical quality measures 

23 


that have been endorsed by the entity 

24 


with a contract with the Secretary 

25 


under section 1890(a). 

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479 

1 


‘‘(II) Prior to any measure being 

2 


selected under this subparagraph, the 

3 


Secretary shall publish in the Federal 

4 


Register such measure and provide for 

5 


a period of public comment on such 
6 
measure. 
7 
‘‘(ii) LIMITATION.—The Secretary 
8 
may not require the electronic reporting of 
9 
information on clinical quality measures 
10 
under subparagraph (A)(iii) unless the 
11 
Secretary has the capacity to accept the in12 
formation electronically, which may be on 
13 
a pilot basis. 
14 
‘‘(iii) COORDINATION OF REPORTING 
15 
OF INFORMATION.—In selecting such 
16 
measures, and in establishing the form and 
17 
manner for reporting measures under sub18 
paragraph (A)(iii), the Secretary shall seek 
19 
to avoid redundant or duplicative reporting 
20 
otherwise required, including reporting 
21 


under subsection (k)(2)(C). 
22 
‘‘(C) DEMONSTRATION OF MEANINGFUL 
23 


USE OF CERTIFIED EHR TECHNOLOGY AND IN


24 


FORMATION EXCHANGE.— 

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480 

1 


‘‘(i) IN GENERAL.—A professional 

2 


may satisfy the demonstration requirement 

3 


of clauses (i) and (ii) of subparagraph (A) 

4 


through means specified by the Secretary, 

5 


which may include— 
6 
‘‘(I) an attestation; 
7 
‘‘(II) the submission of claims 
8 
with appropriate coding (such as a 
9 
code indicating that a patient encoun10 
ter was documented using certified 
11 
EHR technology); 
12 
‘‘(III) a survey response; 
13 
‘‘(IV) reporting under subpara14 
graph (A)(iii); and 
15 
‘‘(V) other means specified by the 
16 
Secretary. 
17 
‘‘(ii) USE OF PART D DATA.—Not18 
withstanding sections 1860D–15(d)(2)(B) 
19 
and 1860D–15(f)(2), the Secretary may 
20 
use data regarding drug claims submitted 
21 


for purposes of section 1860D–15 that are 

22 


necessary for purposes of subparagraph 
23 
(A). 
24 


‘‘(3) APPLICATION.— 

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481 


1 


‘‘(A) PHYSICIAN REPORTING SYSTEM 

2 


RULES.—Paragraphs (5), (6), and (8) of sub


3 


section (k) shall apply for purposes of this sub


4 


section in the same manner as they apply for 

5 


purposes of such subsection. 
6 
‘‘(B) COORDINATION WITH OTHER PAY7 
MENTS.—The provisions of this subsection shall 
8 
not be taken into account in applying the provi9 
sions of subsection (m) of this section and of 
10 
section 1833(m) and any payment under such 
11 
provisions shall not be taken into account in 
12 
computing allowable charges under this sub13 
section. 
14 
‘‘(C) LIMITATIONS ON REVIEW.—There 
15 
shall be no administrative or judicial review 
16 
under section 1869, section 1878, or otherwise 
17 
of the determination of any incentive payment 
18 
under this subsection and the payment adjust19 
ment under subsection (a)(7), including the de20 
termination of a meaningful EHR user under 
21 


paragraph (2), a limitation under paragraph 

22 


(1)(B), and the exception under subsection 

23 


(a)(7)(B). 
24 
‘‘(D) POSTING ON WEBSITE.—The Sec25 


retary shall post on the Internet website of the 

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482 

1 


Centers for Medicare & Medicaid Services, in an 

2 


easily understandable format, a list of the 

3 


names, business addresses, and business phone 

4 


numbers of the eligible professionals who are 

5 


meaningful EHR users and, as determined ap6 
propriate by the Secretary, of group practices 
7 
receiving incentive payments under paragraph 
8 
(1). 
9 
‘‘(4) CERTIFIED EHR TECHNOLOGY DEFINED.— 
10 
For purposes of this section, the term ‘certified 
11 
EHR technology’ means a qualified electronic health 
12 
record (as defined in 3000(13) of the Public Health 
13 
Service Act) that is certified pursuant to section 
14 
3001(c)(5) of such Act as meeting standards adopt15 
ed under section 3004 of such Act that are applica16 
ble to the type of record involved (as determined by 
17 
the Secretary, such as an ambulatory electronic 
18 
health record for office-based physicians or an inpa19 
tient hospital electronic health record for hospitals). 
20 
‘‘(5) DEFINITIONS.—For purposes of this sub21 
section: 
22 


‘‘(A) COVERED PROFESSIONAL SERV


23 


ICES.—The term ‘covered professional services’ 

24 


has the meaning given such term in subsection 
25 
(k)(3). 

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483 

1 


‘‘(B) ELIGIBLE PROFESSIONAL.—The term 

2 


‘eligible professional’ means a physician, as de


3 


fined in section 1861(r). 

4 


‘‘(C) REPORTING PERIOD.—The term ‘re


5 


porting period’ means any period (or periods), 
6 
with respect to a payment year, as specified by 
7 
the Secretary.’’. 
8 
(b) INCENTIVE PAYMENT ADJUSTMENT.—Section 
9 
1848(a) of the Social Security Act (42 U.S.C. 1395w– 
10 
4(a)) is amended by adding at the end the following new 
11 
paragraph: 
12 
‘‘(7) INCENTIVES FOR MEANINGFUL USE OF 
13 
CERTIFIED EHR TECHNOLOGY.— 
14 
‘‘(A) ADJUSTMENT.— 
15 
‘‘(i) IN GENERAL.—Subject to sub16 
paragraphs (B) and (D), with respect to 
17 
covered professional services furnished by 
18 
an eligible professional during 2016 or any 
19 
subsequent payment year, if the eligible 
20 
professional is not a meaningful EHR user 
21 


(as determined under subsection (o)(2)) for 

22 


a reporting period for the year, the fee 

23 


schedule amount for such services fur


24 


nished by such professional during the year 

25 


(including the fee schedule amount for pur


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484 

1 


poses of determining a payment based on 

2 


such amount) shall be equal to the applica


3 


ble percent of the fee schedule amount that 

4 


would otherwise apply to such services 

5 


under this subsection (determined after ap6 
plication of paragraph (3) but without re7 
gard to this paragraph). 
8 
‘‘(ii) APPLICABLE PERCENT.—Subject 
9 
to clause (iii), for purposes of clause (i), 
10 
the term ‘applicable percent’ means— 
11 
‘‘(I) for 2016, 99 percent; 
12 
‘‘(II) for 2017, 98 percent; and 
13 
‘‘(III) for 2018 and each subse14 
quent year, 97 percent. 
15 
‘‘(iii) AUTHORITY TO DECREASE AP16 
PLICABLE PERCENTAGE FOR 2019 AND 
17 
SUBSEQUENT YEARS.—For 2019 and each 
18 
subsequent year, if the Secretary finds that 
19 
the proportion of eligible professionals who 
20 
are meaningful EHR users (as determined 
21 


under subsection (o)(2)) is less than 75 

22 


percent, the applicable percent shall be de


23 


creased by 1 percentage point from the ap


24 


plicable percent in the preceding year, but 

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485 

1 


in no case shall the applicable percent be 

2 


less than 95 percent. 

3 


‘‘(B) SIGNIFICANT HARDSHIP EXCEP


4 


TION.—The Secretary may, on a case-by-case 

5 


basis, exempt an eligible professional from the 
6 
application of the payment adjustment under 
7 
subparagraph (A) if the Secretary determines, 
8 
subject to annual renewal, that compliance with 
9 
the requirement for being a meaningful EHR 
10 
user would result in a significant hardship, such 
11 
as in the case of an eligible professional who 
12 
practices in a rural area without sufficient 
13 
Internet access. In no case may an eligible pro14 
fessional be granted an exemption under this 
15 
subparagraph for more than 5 years. 
16 
‘‘(C) APPLICATION OF PHYSICIAN REPORT17 
ING SYSTEM RULES.—Paragraphs (5), (6), and 
18 
(8) of subsection (k) shall apply for purposes of 
19 
this paragraph in the same manner as they 
20 
apply for purposes of such subsection. 
21 
‘‘(D) NON-APPLICATION TO HOSPITAL22 
BASED ELIGIBLE PROFESSIONALS.—No pay23 


ment adjustment may be made under subpara


24 


graph (A) in the case of hospital-based eligible 

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486 
1 
professionals (as defined in subsection 
2 


(o)(1)(C)(ii)). 

3 


‘‘(E) DEFINITIONS.—For purposes of this 

4 


paragraph: 

5 


‘‘(i) COVERED PROFESSIONAL SERV6 
ICES.—The term ‘covered professional 
7 
services’ has the meaning given such term 
8 
in subsection (k)(3). 
9 
‘‘(ii) ELIGIBLE PROFESSIONAL.—The 
10 
term ‘eligible professional’ means a physi11 
cian, as defined in section 1861(r). 
12 
‘‘(iii) REPORTING PERIOD.—The term 
13 
‘reporting period’ means, with respect to a 
14 
year, a period specified by the Secretary.’’. 
15 
(c) APPLICATION TO CERTAIN HMO-AFFILIATED 
16 
ELIGIBLE PROFESSIONALS.—Section 1853 of the Social 
17 
Security Act (42 U.S.C. 1395w–23) is amended by adding 
18 
at the end the following new subsection: 
19 
‘‘(l) APPLICATION OF ELIGIBLE PROFESSIONAL IN20 
CENTIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOP21 
TION AND MEANINGFUL USE OF CERTIFIED EHR TECH22 
NOLOGY.— 
23 


‘‘(1) IN GENERAL.—Subject to paragraphs (3) 

24 


and (4), in the case of a qualifying MA organization, 

25 


the provisions of sections 1848(o) and 1848(a)(7) 

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487 

1 


shall apply with respect to eligible professionals de


2 


scribed in paragraph (2) of the organization who the 

3 


organization attests under paragraph (6) to be 

4 


meaningful EHR users in a similar manner as they 

5 


apply to eligible professionals under such sections. 
6 
Incentive payments under paragraph (3) shall be 
7 
made to and payment adjustments under paragraph 
8 
(4) shall apply to such qualifying organizations. 
9 
‘‘(2) ELIGIBLE PROFESSIONAL DESCRIBED.— 
10 
With respect to a qualifying MA organization, an eli11 
gible professional described in this paragraph is an 
12 
eligible professional (as defined for purposes of sec13 
tion 1848(o)) who— 
14 
‘‘(A)(i) is employed by the organization; or 
15 
‘‘(ii)(I) is employed by, or is a partner of, 
16 
an entity that through contract with the organi17 
zation furnishes at least 80 percent of the enti18 
ty’s patient care services to enrollees of such or19 
ganization; and 
20 
‘‘(II) furnishes at least 80 percent of the 
21 


professional services of the eligible professional 

22 


to enrollees of the organization; and 

23 


‘‘(B) furnishes, on average, at least 20 

24 


hours per week of patient care services. 

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488 

1 


‘‘(3) ELIGIBLE PROFESSIONAL INCENTIVE PAY


2 


MENTS.— 

3 


‘‘(A) IN GENERAL.—In applying section 

4 


1848(o) under paragraph (1), instead of the ad


5 


ditional payment amount under section 
6 
1848(o)(1)(A) and subject to subparagraph 
7 
(B), the Secretary may substitute an amount 
8 
determined by the Secretary to the extent fea9 
sible and practical to be similar to the esti10 
mated amount in the aggregate that would be 
11 
payable if payment for services furnished by 
12 
such professionals was payable under part B in13 
stead of this part. 
14 
‘‘(B) AVOIDING DUPLICATION OF PAY15 
MENTS.— 
16 
‘‘(i) IN GENERAL.—If an eligible pro17 
fessional described in paragraph (2) is eli18 
gible for the maximum incentive payment 
19 
under section 1848(o)(1)(A) for the same 
20 
payment period, the payment incentive 
21 


shall be made only under such section and 

22 


not under this subsection. 

23 


‘‘(ii) METHODS.—In the case of an el


24 


igible professional described in paragraph 

25 


(2) who is eligible for an incentive payment 

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489 

1 


under section 1848(o)(1)(A) but is not de


2 


scribed in clause (i) for the same payment 

3 


period, the Secretary shall develop a proc


4 


ess— 

5 


‘‘(I) to ensure that duplicate pay6 
ments are not made with respect to 
7 
an eligible professional both under 
8 
this subsection and under section 
9 
1848(o)(1)(A); and 
10 
‘‘(II) to collect data from Medi11 
care Advantage organizations to en12 
sure against such duplicate payments. 
13 
‘‘(C) FIXED SCHEDULE FOR APPLICATION 
14 
OF LIMITATION ON INCENTIVE PAYMENTS FOR 
15 
ALL ELIGIBLE PROFESSIONALS.—In applying 
16 
section 1848(o)(1)(B)(ii) under subparagraph 
17 
(A), in accordance with rules specified by the 
18 
Secretary, a qualifying MA organization shall 
19 
specify a year (not earlier than 2011) that shall 
20 
be treated as the first payment year for all eli21 


gible professionals with respect to such organi22 
zation. 
23 


‘‘(4) PAYMENT ADJUSTMENT.— 

24 


‘‘(A) IN GENERAL.—In applying section 

25 


1848(a)(7) under paragraph (1), instead of the 

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490 

1 


payment adjustment being an applicable per


2 


cent of the fee schedule amount for a year 

3 


under such section, subject to subparagraph 

4 


(D), the payment adjustment under paragraph 

5 


(1) shall be equal to the percent specified in 
6 
subparagraph (B) for such year of the payment 
7 
amount otherwise provided under this section 
8 
for such year. 
9 
‘‘(B) SPECIFIED PERCENT.—The percent 
10 
specified under this subparagraph for a year is 
11 
100 percent minus a number of percentage 
12 
points equal to the product of— 
13 
‘‘(i) the number of percentage points 
14 
by which the applicable percent (under sec15 
tion 1848(a)(7)(A)(ii)) for the year is less 
16 
than 100 percent; and 
17 
‘‘(ii) the Medicare physician expendi18 
ture proportion specified in subparagraph 
19 
(C) for the year. 
20 
‘‘(C) MEDICARE PHYSICIAN EXPENDITURE 
21 


PROPORTION.—The Medicare physician expend


22 


iture proportion under this subparagraph for a 

23 


year is the Secretary’s estimate of the propor


24 


tion, of the expenditures under parts A and B 

25 


that are not attributable to this part, that are 

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491 
1 
attributable to expenditures for physicians’ 
2 


services. 

3 


‘‘(D) APPLICATION OF PAYMENT ADJUST


4 


MENT.—In the case that a qualifying MA orga


5 


nization attests that not all eligible profes6 
sionals are meaningful EHR users with respect 
7 
to a year, the Secretary shall apply the payment 
8 
adjustment under this paragraph based on the 
9 
proportion of such eligible professionals that are 
10 
not meaningful EHR users for such year. 
11 
‘‘(5) QUALIFYING MA ORGANIZATION DE12 
FINED.—In this subsection and subsection (m), the 
13 
term ‘qualifying MA organization’ means a Medicare 
14 
Advantage organization that is organized as a health 
15 
maintenance organization (as defined in section 
16 
2791(b)(3) of the Public Health Service Act). 
17 
‘‘(6) MEANINGFUL EHR USER ATTESTATION.— 
18 
For purposes of this subsection and subsection (m), 
19 
a qualifying MA organization shall submit an attes20 
tation, in a form and manner specified by the Sec21 


retary which may include the submission of such at


22 


testation as part of submission of the initial bid 

23 


under section 1854(a)(1)(A)(iv), identifying— 

24 


‘‘(A) whether each eligible professional de


25 


scribed in paragraph (2), with respect to such 

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492 


1 


organization is a meaningful EHR user (as de


2 


fined in section 1848(o)(2)) for a year specified 

3 


by the Secretary; and 

4 


‘‘(B) whether each eligible hospital de


5 


scribed in subsection (m)(1), with respect to 
6 
such organization, is a meaningful EHR user 
7 
(as defined in section 1886(n)(3)) for an appli8 
cable period specified by the Secretary.’’. 
9 
(d) CONFORMING AMENDMENTS.—Section 1853 of 
10 
the Social Security Act (42 U.S.C. 1395w–23) is amend11 
ed— 
12 
(1) in subsection (a)(1)(A), by striking ‘‘and 
13 
(i)’’ and inserting ‘‘(i), and (l)’’; 
14 
(2) in subsection (c)— 
15 
(A) in paragraph (1)(D)(i), by striking 
16 
‘‘section 1886(h)’’ and inserting ‘‘sections 
17 
1848(o) and 1886(h)’’; and 
18 
(B) in paragraph (6)(A), by inserting after 
19 
‘‘under part B,’’ the following: ‘‘excluding ex20 
penditures attributable to subsections (a)(7) 
21 


and (o) of section 1848,’’; and 

22 


(3) in subsection (f), by inserting ‘‘and for pay


23 


ments under subsection (l)’’ after ‘‘with the organi24 
zation’’. 

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493 


1 
(e) CONFORMING AMENDMENTS TO E-PRE2 
SCRIBING.— 
3 


(1) Section 1848(a)(5)(A) of the Social Security 

4 


Act (42 U.S.C. 1395w–4(a)(5)(A)) is amended— 

5 


(A) in clause (i), by striking ‘‘or any sub6 
sequent year’’ and inserting ‘‘, 2013, 2014, or 
7 
2015’’; and 
8 
(B) in clause (ii), by striking ‘‘and each 
9 
subsequent year’’ and inserting ‘‘and 2015’’. 
10 
(2) Section 1848(m)(2) of such Act (42 U.S.C. 
11 
1395w–4(m)(2)) is amended— 
12 
(A) in subparagraph (A), by striking ‘‘For 
13 
2009’’ and inserting ‘‘Subject to subparagraph 
14 
(D), for 2009’’; and 
15 
(B) by adding at the end the following new 
16 
subparagraph: 
17 
‘‘(D) LIMITATION WITH RESPECT TO EHR 
18 
INCENTIVE PAYMENTS.—The provisions of this 
19 
paragraph shall not apply to an eligible profes20 
sional (or, in the case of a group practice under 
21 


paragraph (3)(C), to the group practice) if, for 

22 


the reporting period the eligible professional (or 

23 


group practice) receives an incentive payment 

24 


under subsection (o)(1)(A) with respect to a 

25 


certified EHR technology (as defined in sub-

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494 

1 


section (o)(4)) that has the capability of elec


2 


tronic prescribing.’’. 

3 
SEC. 4312. INCENTIVES FOR HOSPITALS. 
4 


(a) INCENTIVE PAYMENT.—Section 1886 of the So5 
cial Security Act (42 U.S.C. 1395ww) is amended by add6 
ing at the end the following new subsection: 
7 
‘‘(n) INCENTIVES FOR ADOPTION AND MEANINGFUL 
8 
USE OF CERTIFIED EHR TECHNOLOGY.— 
9 
‘‘(1) IN GENERAL.—Subject to the succeeding 
10 
provisions of this subsection, with respect to inpa11 
tient hospital services furnished by an eligible hos12 
pital during a payment year (as defined in para13 
graph (2)(G)), if the eligible hospital is a meaningful 
14 
EHR user (as determined under paragraph (3)) for 
15 
the reporting period with respect to such year, in ad16 
dition to the amount otherwise paid under this sec17 
tion, there also shall be paid to the eligible hospital, 
18 
from the Federal Hospital Insurance Trust Fund es19 
tablished under section 1817, an amount equal to 
20 
the applicable amount specified in paragraph (2)(A) 
21 


for the hospital for such payment year. 

22 


‘‘(2) PAYMENT AMOUNT.— 

23 


‘‘(A) IN GENERAL.—Subject to the suc


24 


ceeding subparagraphs of this paragraph, the 

25 


applicable amount specified in this subpara


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495 

1 


graph for an eligible hospital for a payment 

2 


year is equal to the product of the following: 

3 


‘‘(i) INITIAL AMOUNT.—The sum of— 

4 


‘‘(I) the base amount specified in 

5 


subparagraph (B); plus 
6 
‘‘(II) the discharge related 
7 
amount specified in subparagraph (C) 
8 
for a 12-month period selected by the 
9 
Secretary with respect to such pay10 
ment year. 
11 
‘‘(ii) MEDICARE SHARE.—The Medi12 
care share as specified in subparagraph 
13 
(D) for the hospital for a period selected 
14 
by the Secretary with respect to such pay15 
ment year. 
16 
‘‘(iii) TRANSITION FACTOR.—The 
17 
transition factor specified in subparagraph 
18 
(E) for the hospital for the payment year. 
19 
‘‘(B) BASE AMOUNT.—The base amount 
20 
specified in this subparagraph is $2,000,000. 
21 


‘‘(C) DISCHARGE RELATED AMOUNT.—The 

22 


discharge related amount specified in this sub


23 


paragraph for a 12-month period selected by 

24 


the Secretary shall be determined as the sum of 

25 


the amount, based upon total discharges (re


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496 

1 


gardless of any source of payment) for the pe


2 


riod, for each discharge up to the 23,000th dis


3 


charge as follows: 

4 


‘‘(i) For the 1,150th through the 

5 


23,000th discharge, $200. 
6 
‘‘(ii) For any discharge greater than 
7 
the 23,000th, $0. 
8 
‘‘(D) MEDICARE SHARE.—The Medicare 
9 
share specified under this subparagraph for a 
10 
hospital for a period selected by the Secretary 
11 
for a payment year is equal to the fraction— 
12 
‘‘(i) the numerator of which is the 
13 
sum (for such period and with respect to 
14 
the hospital) of— 
15 
‘‘(I) the number of inpatient-bed16 
days (as established by the Secretary) 
17 
which are attributable to individuals 
18 
with respect to whom payment may be 
19 
made under part A; and 
20 
‘‘(II) the number of inpatient21 


bed-days (as so established) which are 

22 


attributable to individuals who are en


23 


rolled with a Medicare Advantage or


24 


ganization under part C; and 

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497 

1 


‘‘(ii) the denominator of which is the 

2 


product of— 

3 


‘‘(I) the total number of inpa


4 


tient-bed-days with respect to the hos


5 


pital during such period; and 
6 
‘‘(II) the total amount of the hos7 
pital’s charges during such period, not 
8 
including any charges that are attrib9 
utable to charity care (as such term is 
10 
used for purposes of hospital cost re11 
porting under this title), divided by 
12 
the total amount of the hospital’s 
13 
charges during such period. 
14 
Insofar as the Secretary determines that data 
15 
are not available on charity care necessary to 
16 
calculate the portion of the formula specified in 
17 
clause (ii)(II), the Secretary shall use data on 
18 
uncompensated care and may adjust such data 
19 
so as to be an appropriate proxy for charity 
20 
care including a downward adjustment to elimi21 


nate bad debt data from uncompensated care 

22 


data. In the absence of the data necessary, with 

23 


respect to a hospital, for the Secretary to com


24 


pute the amount described in clause (ii)(II), the 

25 


amount under such clause shall be deemed to 

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498 

1 


be 1. In the absence of data, with respect to a 

2 


hospital, necessary to compute the amount de


3 


scribed in clause (i)(II), the amount under such 

4 


clause shall be deemed to be 0. 

5 


‘‘(E) TRANSITION FACTOR SPECIFIED.— 
6 
‘‘(i) IN GENERAL.—Subject to clause 
7 
(ii), the transition factor specified in this 
8 
subparagraph for an eligible hospital for a 
9 
payment year is as follows: 
10 
‘‘(I) For the first payment year 
11 
for such hospital, 1. 
12 
‘‘(II) For the second payment 
13 
year for such hospital, 3/4. 
14 
‘‘(III) For the third payment 
15 
year for such hospital, 1/2. 
16 
‘‘(IV) For the fourth payment 
17 
year for such hospital, 1/4. 
18 
‘‘(V) For any succeeding pay19 
ment year for such hospital, 0. 
20 
‘‘(ii) PHASE DOWN FOR ELIGIBLE 
21 
HOSPITALS FIRST ADOPTING EHR AFTER 
22 


2013.—If the first payment year for an eli


23 


gible hospital is after 2013, then the tran


24 


sition factor specified in this subparagraph 

25 


for a payment year for such hospital is the 

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499 

1 


same as the amount specified in clause (i) 

2 


for such payment year for an eligible hos


3 


pital for which the first payment year is 

4 


2013. If the first payment year for an eli


5 


gible hospital is after 2015 then the transi6 
tion factor specified in this subparagraph 
7 
for such hospital and for such year and 
8 
any subsequent year shall be 0. 
9 
‘‘(F) FORM OF PAYMENT.—The payment 
10 
under this subsection for a payment year may 
11 
be in the form of a single consolidated payment 
12 
or in the form of such periodic installments as 
13 
the Secretary may specify. 
14 
‘‘(G) PAYMENT YEAR DEFINED.— 
15 
‘‘(i) IN GENERAL.—For purposes of 
16 
this subsection, the term ‘payment year’ 
17 
means a fiscal year beginning with fiscal 
18 
year 2011. 
19 
‘‘(ii) FIRST, SECOND, ETC. PAYMENT 
20 
YEAR.—The term ‘first payment year’ 
21 


means, with respect to inpatient hospital 

22 


services furnished by an eligible hospital, 

23 


the first fiscal year for which an incentive 

24 


payment is made for such services under 

25 


this subsection. The terms ‘second pay-

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500 

1 


ment year’, ‘third payment year’, and 

2 


‘fourth payment year’ mean, with respect 

3 


to an eligible hospital, each successive year 

4 


immediately following the first payment 

5 


year for that hospital. 
6 
‘‘(3) MEANINGFUL EHR USER.— 
7 
‘‘(A) IN GENERAL.—For purposes of para8 
graph (1), an eligible hospital shall be treated 
9 
as a meaningful EHR user for a reporting pe10 
riod for a payment year (or, for purposes of 
11 
subsection (b)(3)(B)(ix), for a reporting period 
12 
under such subsection for a fiscal year) if each 
13 
of the following requirements are met: 
14 
‘‘(i) MEANINGFUL USE OF CERTIFIED 
15 
EHR TECHNOLOGY.—The eligible hospital 
16 
demonstrates to the satisfaction of the Sec17 
retary, in accordance with subparagraph 
18 
(C)(i), that during such period the hospital 
19 
is using certified EHR technology in a 
20 
meaningful manner. 
21 


‘‘(ii) INFORMATION EXCHANGE.—The 

22 


eligible hospital demonstrates to the satis


23 


faction of the Secretary, in accordance 

24 


with subparagraph (C)(i), that during such 

25 


period such certified EHR technology is 

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501 

1 


connected in a manner that provides, in 

2 


accordance with law and standards appli


3 


cable to the exchange of information, for 

4 


the electronic exchange of health informa


5 


tion to improve the quality of health care, 
6 
such as promoting care coordination. 
7 
‘‘(iii) REPORTING ON MEASURES 
8 
USING EHR.—Subject to subparagraph 
9 
(B)(ii) and using such certified EHR tech10 
nology, the eligible hospital submits infor11 
mation for such period, in a form and 
12 
manner specified by the Secretary, on such 
13 
clinical quality measures and such other 
14 
measures as selected by the Secretary 
15 
under subparagraph (B)(i). 
16 
The Secretary shall seek to improve the use of 
17 
electronic health records and health care quality 
18 
over time by requiring more stringent measures 
19 
of meaningful use selected under this para20 
graph. 
21 


‘‘(B) REPORTING ON MEASURES.— 

22 


‘‘(i) SELECTION.—The Secretary shall 

23 


select measures for purposes of subpara


24 


graph (A)(iii) but only consistent with the 
25 
following: 

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502 

1 


‘‘(I) The Secretary shall provide 

2 


preference to clinical quality measures 

3 


that have been selected for purposes 

4 


of applying subsection (b)(3)(B)(viii) 

5 


or that have been endorsed by the en6 
tity with a contract with the Secretary 
7 
under section 1890(a). 
8 
‘‘(II) Prior to any measure (other 
9 
than a clinical quality measure that 
10 
has been selected for purposes of ap11 
plying subsection (b)(3)(B)(viii)) 
12 
being selected under this subpara13 
graph, the Secretary shall publish in 
14 
the Federal Register such measure 
15 
and provide for a period of public 
16 
comment on such measure. 
17 
‘‘(ii) LIMITATIONS.—The Secretary 
18 
may not require the electronic reporting of 
19 
information on clinical quality measures 
20 
under subparagraph (A)(iii) unless the 
21 


Secretary has the capacity to accept the in


22 


formation electronically, which may be on 

23 


a pilot basis. 
24 
‘‘(iii) COORDINATION OF REPORTING 
25 
OF INFORMATION.—In selecting such 

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503 

1 


measures, and in establishing the form and 

2 


manner for reporting measures under sub


3 


paragraph (A)(iii), the Secretary shall seek 

4 


to avoid redundant or duplicative reporting 

5 


with reporting otherwise required, includ6 
ing reporting under subsection 
7 
(b)(3)(B)(viii). 
8 
‘‘(C) DEMONSTRATION OF MEANINGFUL 
9 
USE OF CERTIFIED EHR TECHNOLOGY AND IN10 
FORMATION EXCHANGE.— 
11 
‘‘(i) IN GENERAL.—A hospital may 
12 
satisfy the demonstration requirement of 
13 
clauses (i) and (ii) of subparagraph (A) 
14 
through means specified by the Secretary, 
15 
which may include— 
16 
‘‘(I) an attestation; 
17 
‘‘(II) the submission of claims 
18 
with appropriate coding (such as a 
19 
code indicating that inpatient care 
20 
was documented using certified EHR 
21 


technology); 

22 


‘‘(III) a survey response; 

23 


‘‘(IV) reporting under subpara


24 


graph (A)(iii); and 

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504 

1 


‘‘(V) other means specified by the 

2 


Secretary. 
3 
‘‘(ii) USE OF PART D DATA.—Not4 


withstanding sections 1860D–15(d)(2)(B) 

5 


and 1860D–15(f)(2), the Secretary may 
6 
use data regarding drug claims submitted 
7 
for purposes of section 1860D–15 that are 
8 
necessary for purposes of subparagraph 
9 
(A). 
10 
‘‘(4) APPLICATION.— 
11 
‘‘(A) LIMITATIONS ON REVIEW.—There 
12 
shall be no administrative or judicial review 
13 
under section 1869, section 1878, or otherwise 
14 
of the determination of any incentive payment 
15 
under this subsection and the payment adjust16 
ment under subsection (b)(3)(B)(ix), including 
17 
the determination of a meaningful EHR user 
18 
under paragraph (3), determination of meas19 
ures applicable to services furnished by eligible 
20 
hospitals under this subsection, and the excep21 


tion under subsection (b)(3)(B)(ix)(II). 
22 
‘‘(B) POSTING ON WEBSITE.—The Sec23 


retary shall post on the Internet website of the 

24 


Centers for Medicare & Medicaid Services, in an 

25 


easily understandable format, a list of the 

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505 

1 


names of the eligible hospitals that are mean


2 


ingful EHR users under this subsection or sub


3 


section (b)(3)(B)(ix) and other relevant data as 

4 


determined appropriate by the Secretary. The 

5 


Secretary shall ensure that a hospital has the 
6 
opportunity to review the other relevant data 
7 
that are to be made public with respect to the 
8 
hospital prior to such data being made public. 
9 
‘‘(5) CERTIFIED EHR TECHNOLOGY DEFINED.— 
10 
The term ‘certified EHR technology’ has the mean11 
ing given such term in section 1848(o)(4). 
12 
‘‘(6) DEFINITIONS.—For purposes of this sub13 
section: 
14 
‘‘(A) ELIGIBLE HOSPITAL.—The term ‘eli15 
gible hospital’ means a subsection (d) hospital. 
16 
‘‘(B) REPORTING PERIOD.—The term ‘re17 
porting period’ means any period (or periods), 
18 
with respect to a payment year, as specified by 
19 
the Secretary.’’. 
20 
(b) INCENTIVE MARKET BASKET ADJUSTMENT.— 
21 
Section 1886(b)(3)(B) of the Social Security Act (42 
22 
U.S.C. 1395ww(b)(3)(B)) is amended— 
23 


(1) in clause (viii)(I), by inserting ‘‘(or, begin


24 


ning with fiscal year 2016, by one-quarter)’’ after 

25 


‘‘2.0 percentage points’’; and 

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506 

1 


(2) by adding at the end the following new 

2 


clause: 

3 


‘‘(ix)(I) For purposes of clause (i) for fiscal year 
4 
2016 and each subsequent fiscal year, in the case of an 
5 
eligible hospital (as defined in subsection (n)(6)(A)) that 
6 
is not a meaningful EHR user (as defined in subsection 
7 
(n)(3)) for the reporting period for such fiscal year, three8 
quarters of the applicable percentage increase otherwise 
9 
applicable under clause (i) for such fiscal year shall be 
10 
reduced by 331/3 percent for fiscal year 2016, 662/3 per11 
cent for fiscal year 2017, and 100 percent for fiscal year 
12 
2018 and each subsequent fiscal year. Such reduction 
13 
shall apply only with respect to the fiscal year involved 
14 
and the Secretary shall not take into account such reduc15 
tion in computing the applicable percentage increase under 
16 
clause (i) for a subsequent fiscal year. 
17 
‘‘(II) The Secretary may, on a case-by-case basis, ex18 
empt a subsection (d) hospital from the application of sub19 
clause (I) with respect to a fiscal year if the Secretary 
20 
determines, subject to annual renewal, that requiring such 
21 
hospital to be a meaningful EHR user during such fiscal 
22 
year would result in a significant hardship, such as in the 
23 
case of a hospital in a rural area without sufficient Inter24 
net access. In no case may a hospital be granted an ex25 
emption under this subclause for more than 5 years. 

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507 

1 


‘‘(III) For fiscal year 2016 and each subsequent fis2 
cal year, a State in which hospitals are paid for services 
3 
under section 1814(b)(3) shall adjust the payments to 
4 
each subsection (d) hospital in the State that is not a 
5 
meaningful EHR user (as defined in subsection (n)(3)) 
6 
in a manner that is designed to result in an aggregate 
7 
reduction in payments to hospitals in the State that is 
8 
equivalent to the aggregate reduction that would have oc9 
curred if payments had been reduced to each subsection 
10 
(d) hospital in the State in a manner comparable to the 
11 
reduction under the previous provisions of this clause. The 
12 
State shall report to the Secretary the methodology it will 
13 
use to make the payment adjustment under the previous 
14 
sentence. 
15 
‘‘(IV) For purposes of this clause, the term ‘reporting 
16 
period’ means, with respect to a fiscal year, any period 
17 
(or periods), with respect to the fiscal year, as specified 
18 
by the Secretary.’’. 
19 
(c) APPLICATION TO CERTAIN HMO-AFFILIATED 
20 
ELIGIBLE HOSPITALS.—Section 1853 of the Social Secu21 
rity Act (42 U.S.C. 1395w-23), as amended by section 
22 
4311(c), is further amended by adding at the end the fol23 
lowing new subsection: 
24 


‘‘(m) APPLICATION OF ELIGIBLE HOSPITAL INCEN25 
TIVES FOR CERTAIN MA ORGANIZATIONS FOR ADOPTION 

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508 


1 
AND MEANINGFUL USE OF CERTIFIED EHR TECH2 
NOLOGY.— 
3 


‘‘(1) APPLICATION.—Subject to paragraphs (3) 

4 


and (4), in the case of a qualifying MA organization, 

5 


the provisions of sections 1886(n) and 
6 
1886(b)(3)(B)(ix) shall apply with respect to eligible 
7 
hospitals described in paragraph (2) of the organiza8 
tion which the organization attests under subsection 
9 
(l)(6) to be meaningful EHR users in a similar man10 
ner as they apply to eligible hospitals under such 
11 
sections. Incentive payments under paragraph (3) 
12 
shall be made to and payment adjustments under 
13 
paragraph (4) shall apply to such qualifying organi14 
zations. 
15 
‘‘(2) ELIGIBLE HOSPITAL DESCRIBED.—With 
16 
respect to a qualifying MA organization, an eligible 
17 
hospital described in this paragraph is an eligible 
18 
hospital that is under common corporate governance 
19 
with such organization and serves individuals en20 
rolled under an MA plan offered by such organiza21 
tion. 
22 
‘‘(3) ELIGIBLE HOSPITAL INCENTIVE PAY23 


MENTS.— 

24 


‘‘(A) IN GENERAL.—In applying section 

25 


1886(n)(2) under paragraph (1), instead of the 

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509 


1 


additional payment amount under section 

2 


1886(n)(2), there shall be substituted an 

3 


amount determined by the Secretary to be simi


4 


lar to the estimated amount in the aggregate 

5 


that would be payable if payment for services 
6 
furnished by such hospitals was payable under 
7 
part A instead of this part. In implementing the 
8 
previous sentence, the Secretary— 
9 
‘‘(i) shall, insofar as data to deter10 
mine the discharge related amount under 
11 
section 1886(n)(2)(C) for an eligible hos12 
pital are not available to the Secretary, use 
13 
such alternative data and methodology to 
14 
estimate such discharge related amount as 
15 
the Secretary determines appropriate; and 
16 
‘‘(ii) shall, insofar as data to deter17 
mine the medicare share described in sec18 
tion 1886(n)(2)(D) for an eligible hospital 
19 
are not available to the Secretary, use such 
20 
alternative data and methodology to esti21 


mate such share, which data and method


22 


ology may include use of the inpatient bed 

23 


days (or discharges) with respect to an eli


24 


gible hospital during the appropriate pe


25 


riod which are attributable to both individ


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F:\IBF\111\HR1.XML 


510 


1 


uals for whom payment may be made 

2 


under part A or individuals enrolled in an 

3 


MA plan under a Medicare Advantage or


4 


ganization under this part as a proportion 

5 


of the total number of patient-bed-days (or 
6 
discharges) with respect to such hospital 
7 
during such period. 
8 
‘‘(B) AVOIDING DUPLICATION OF PAY9 
MENTS.— 
10 
‘‘(i) IN GENERAL.—In the case of a 
11 
hospital that for a payment year is an eli12 
gible hospital described in paragraph (2), 
13 
is an eligible hospital under section 
14 
1886(n), and for which at least one-third 
15 
of their discharges (or bed-days) of Medi16 
care patients for the year are covered 
17 
under part A, payment for the payment 
18 
year shall be made only under section 
19 
1886(n) and not under this subsection. 
20 
‘‘(ii) METHODS.—In the case of a 
21 


hospital that is an eligible hospital de


22 


scribed in paragraph (2) and also is eligi


23 


ble for an incentive payment under section 

24 


1886(n) but is not described in clause (i) 

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511 

1 


for the same payment period, the Secretary 

2 


shall develop a process— 

3 


‘‘(I) to ensure that duplicate pay


4 


ments are not made with respect to 

5 


an eligible hospital both under this 
6 
subsection and under section 1886(n); 
7 
and 
8 
‘‘(II) to collect data from Medi9 
care Advantage organizations to en10 
sure against such duplicate payments. 
11 
‘‘(4) PAYMENT ADJUSTMENT.— 
12 
‘‘(A) Subject to paragraph (3), in the case 
13 
of a qualifying MA organization (as defined in 
14 
section 1853(l)(5)), if, according to the attesta15 
tion of the organization submitted under sub16 
section (l)(6) for an applicable period, one or 
17 
more eligible hospitals (as defined in section 
18 
1886(n)(6)(A)) that are under common cor19 
porate governance with such organization and 
20 
that serve individuals enrolled under a plan of21 


fered by such organization are not meaningful 

22 


EHR users (as defined in section 1886(n)(3)) 

23 


with respect to a period, the payment amount 

24 


payable under this section for such organization 

25 


for such period shall be the percent specified in 

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512 

1 


subparagraph (B) for such period of the pay


2 


ment amount otherwise provided under this sec


3 


tion for such period. 

4 


‘‘(B) SPECIFIED PERCENT.—The percent 

5 


specified under this subparagraph for a year is 
6 
100 percent minus a number of percentage 
7 
points equal to the product of— 
8 
‘‘(i) the number of the percentage 
9 
point reduction effected under section 
10 
1886(b)(3)(B)(ix)(I) for the period; and 
11 
‘‘(ii) the Medicare hospital expendi12 
ture proportion specified in subparagraph 
13 
(C) for the year. 
14 
‘‘(C) MEDICARE HOSPITAL EXPENDITURE 
15 
PROPORTION.—The Medicare hospital expendi16 
ture proportion under this subparagraph for a 
17 
year is the Secretary’s estimate of the propor18 
tion, of the expenditures under parts A and B 
19 
that are not attributable to this part, that are 
20 
attributable to expenditures for inpatient hos21 


pital services. 
22 
‘‘(D) APPLICATION OF PAYMENT ADJUST23 


MENT.—In the case that a qualifying MA orga


24 


nization attests that not all eligible hospitals 

25 


are meaningful EHR users with respect to an 

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513 

1 


applicable period, the Secretary shall apply the 
2 
payment adjustment under this paragraph 
3 


based on a methodology specified by the Sec


4 


retary, taking into account the proportion of 

5 


such eligible hospitals, or discharges from such 
6 
hospitals, that are not meaningful EHR users 
7 
for such period.’’. 
8 
(d) CONFORMING AMENDMENTS.— 
9 
(1) Section 1814(b) of the Social Security Act 
10 
(42 U.S.C. 1395f(b)) is amended— 
11 
(A) in paragraph (3), in the matter pre12 
ceding subparagraph (A), by inserting ‘‘, sub13 
ject to section 1886(d)(3)(B)(ix)(III),’’ after 
14 
‘‘then’’; and 
15 
(B) by adding at the end the following: 
16 
‘‘For purposes of applying paragraph (3), there 
17 
shall be taken into account incentive payments, 
18 
and payment adjustments under subsection 
19 
(b)(3)(B)(ix) or (n) of section 1886.’’. 
20 
(2) Section 1851(i)(1) of the Social Security 
21 


Act (42 U.S.C. 1395w–21(i)(1)) is amended by 
22 
striking ‘‘and 1886(h)(3)(D)’’ and inserting 
23 


‘‘1886(h)(3)(D), and 1853(m)’’. 

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514 

1 


(3) Section 1853 of the Social Security Act (42 

2 


U.S.C. 1395w–23), as amended by section 

3 


4311(d)(1), is amended— 

4 


(A) in subsection (c)— 

5 


(i) in paragraph (1)(D)(i), by striking 
6 
‘‘1848(o)’’ and inserting ‘‘, 1848(o), and 
7 
1886(n)’’; and 
8 
(ii) in paragraph (6)(A), by inserting 
9 
‘‘and subsections (b)(3)(B)(ix) and (n) of 
10 
section 1886’’ after ‘‘section 1848’’; and 
11 
(B) in subsection (f), by inserting ‘‘and 
12 
subsection (m)’’ after ‘‘under subsection (l)’’. 
13 
SEC. 4313. TREATMENT OF PAYMENTS AND SAVINGS; IM14 
PLEMENTATION FUNDING. 
15 
(a) PREMIUM HOLD HARMLESS.— 
16 
(1) IN GENERAL.—Section 1839(a)(1) of the 
17 
Social Security Act (42 U.S.C. 1395r(a)(1)) is 
18 
amended by adding at the end the following: ‘‘In ap19 
plying this paragraph there shall not be taken into 
20 
account additional payments under section 1848(o) 
21 


and section 1853(l)(3) and the Government con


22 


tribution under section 1844(a)(3).’’. 

23 


(2) PAYMENT.—Section 1844(a) of such Act 

24 


(42 U.S.C. 1395w(a)) is amended— 

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515 

1 


(A) in paragraph (2), by striking the pe


2 


riod at the end and inserting ‘‘; plus’’; and 

3 


(B) by adding at the end the following new 

4 


paragraph: 

5 


‘‘(3) a Government contribution equal to the 
6 
amount of payment incentives payable under sec7 
tions 1848(o) and 1853(l)(3).’’. 
8 
(b) MEDICARE IMPROVEMENT FUND.—Section 1898 
9 
of the Social Security Act (42 U.S.C. 1395iii), as added 
10 
by section 7002(a) of the Supplemental Appropriations 
11 
Act, 2008 (Public Law 110–252) and as amended by sec12 
tion 188(a)(2) of the Medicare Improvements for Patients 
13 
and Providers Act of 2008 (Public Law 110–275; 122 
14 
Stat. 2589) and by section 6 of the QI Program Supple15 
mental Funding Act of 2008, is amended— 
16 
(1) in subsection (a)— 
17 
(A) by inserting ‘‘medicare’’ before ‘‘fee18 
for-service’’; and 
19 
(B) by inserting before the period at the 
20 
end the following: ‘‘including, but not limited 
21 


to, an increase in the conversion factor under 

22 


section 1848(d) to address, in whole or in part, 

23 


any projected shortfall in the conversion factor 

24 


for 2014 relative to the conversion factor for 

25 


2008 and adjustments to payments for items 

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516 

1 


and services furnished by providers of services 

2 


and suppliers under such original medicare fee


3 


for-service program’’; and 

4 


(2) in subsection (b)— 

5 


(A) in paragraph (1), by striking ‘‘during 
6 
fiscal year 2014,’’ and all that follows and in7 
serting the following: ‘‘during— 
8 
‘‘(A) fiscal year 2014, $22,290,000,000; 
9 
and 
10 
‘‘(B) fiscal year 2020 and each subsequent 
11 
fiscal year, the Secretary’s estimate, as of July 
12 
1 of the fiscal year, of the aggregate reduction 
13 
in expenditures under this title during the pre14 
ceding fiscal year directly resulting from the re15 
duction in payment amounts under sections 
16 
1848(a)(7), 1853(l)(4), 1853(m)(4), and 
17 
1886(b)(3)(B)(ix).’’; and 
18 
(B) by adding at the end the following new 
19 
paragraph: 
20 
‘‘(4) NO EFFECT ON PAYMENTS IN SUBSE21 


QUENT YEARS.—In the case that expenditures from 

22 


the Fund are applied to, or otherwise affect, a pay


23 


ment rate for an item or service under this title for 

24 


a year, the payment rate for such item or service 

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517 

1 


shall be computed for a subsequent year as if such 

2 


application or effect had never occurred.’’. 

3 


(c) IMPLEMENTATION FUNDING.—In addition to 
4 
funds otherwise available, out of any funds in the Treas5 
ury not otherwise appropriated, there are appropriated to 
6 
the Secretary of Health and Human Services for the Cen7 
ter for Medicare & Medicaid Services Program Manage8 
ment Account, $60,000,000 for each of fiscal years 2009 
9 
through 2015 and $30,000,000 for each succeeding fiscal 
10 
year through fiscal year 2019, which shall be available for 
11 
purposes of carrying out the provisions of (and amend12 
ments made by) this part. Amounts appropriated under 
13 
this subsection for a fiscal year shall be available until ex14 
pended. 
15 
SEC. 4314. STUDY ON APPLICATION OF EHR PAYMENT IN16 
CENTIVES FOR PROVIDERS NOT RECEIVING 
17 
OTHER INCENTIVE PAYMENTS. 
18 
(a) STUDY.— 
19 
(1) IN GENERAL.—The Secretary of Health and 
20 
Human Services shall conduct a study to determine 
21 


the extent to which and manner in which payment 

22 


incentives (such as under title XVIII or XIX of the 

23 


Social Security Act) and other funding for purposes 

24 


of implementing and using certified EHR technology 

25 


(as defined in section 3000 of the Public Health 

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518 

1 


Service Act) should be made available to health care 

2 


providers who are receiving minimal or no payment 

3 


incentives or other funding under this Act, under 

4 


title XVIII or XIX of the Social Security Act, or 

5 


otherwise, for such purposes. 
6 
(2) DETAILS OF STUDY.—Such study shall in7 
clude an examination of— 
8 
(A) the adoption rates of certified EHR 
9 
technology by such health care providers; 
10 
(B) the clinical utility of such technology 
11 
by such health care providers; 
12 
(C) whether the services furnished by such 
13 
health care providers are appropriate for or 
14 
would benefit from the use of such technology; 
15 
(D) the extent to which such health care 
16 
providers work in settings that might otherwise 
17 
receive an incentive payment or other funding 
18 
under this Act, title XVIII or XIX of the Social 
19 
Security Act, or otherwise; 
20 
(E) the potential costs and the potential 
21 


benefits of making payment incentives and 

22 


other funding available to such health care pro


23 


viders; and 

24 


(F) any other issues the Secretary deems 

25 


to be appropriate. 

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519 

1 


(b) REPORT.—Not later than June 30, 2010, the 
2 
Secretary shall submit to Congress a report on the find3 
ings and conclusions of the study conducted under sub4 
section (a). 
5 


PART III—MEDICAID FUNDING 
6 
SEC. 4321. MEDICAID PROVIDER HIT ADOPTION AND OPER7 
ATION PAYMENTS; IMPLEMENTATION FUND8 
ING. 
9 
(a) IN GENERAL.—Section 1903 of the Social Secu10 
rity Act (42 U.S.C. 1396b) is amended— 
11 
(1) in subsection (a)(3)— 
12 
(A) by striking ‘‘and’’ at the end of sub13 
paragraph (D); 
14 
(B) by striking ‘‘plus’’ at the end of sub15 
paragraph (E) and inserting ‘‘and’’; and 
16 
(C) by adding at the end the following new 
17 
subparagraph: 
18 
‘‘(F)(i) 100 percent of so much of the 
19 
sums expended during such quarter as are at20 
tributable to payments for certified EHR tech21 


nology (and support services including mainte


22 


nance and training that is for, or is necessary 

23 


for the adoption and operation of, such tech


24 


nology) by Medicaid providers described in sub


25 


section (t)(1); and 

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520 

1 


‘‘(ii) 90 percent of so much of the sums ex


2 


pended during such quarter as are attributable 

3 


to payments for reasonable administrative ex


4 


penses related to the administration of pay


5 


ments described in clause (i) if the State meets 
6 
the condition described in subsection (t)(9); 
7 
plus’’; and 
8 
(2) by inserting after subsection (s) the fol9 
lowing new subsection: 
10 
‘‘(t)(1)(A) For purposes of subsection (a)(3)(F), the 
11 
payments for certified EHR technology (and support serv12 
ices including maintenance that is for, or is necessary for 
13 
the operation of, such technology) by Medicaid providers 
14 
described in this paragraph are payments made by the 
15 
State in accordance with this subsection of the applicable 
16 
percent (as specified in subparagraph (B)) of the net al17 
lowable costs of Medicaid providers (as defined in para18 
graph (2)) for such technology (and support services). 
19 
‘‘(B) For purposes of subparagraph (A), the applica20 
ble percent is— 
21 


‘‘(i) in the case of a Medicaid provider de


22 


scribed in paragraph (2)(A), 85 percent; and 

23 


‘‘(ii) in the case of a Medicaid provider de


24 


scribed in paragraph (2)(B), 100 percent. 

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521 

1 


‘‘(2) In this subsection and subsection (a)(3)(F), the 
2 
term ‘Medicaid provider’ means— 
3 


‘‘(A) an eligible professional (as defined in 

4 


paragraph (3)(B)) who is not hospital-based and has 

5 


at least 30 percent of the professional’s patient vol6 
ume (as estimated in accordance with standards es7 
tablished by the Secretary) attributable to individ8 
uals who are receiving medical assistance under this 
9 
title; and 
10 
‘‘(B)(i) a children’s hospital, (ii) an acute-care 
11 
hospital that is not described in clause (i) and that 
12 
has at least 10 percent of the hospital’s patient vol13 
ume (as estimated in accordance with standards es14 
tablished by the Secretary) attributable to individ15 
uals who are receiving medical assistance under this 
16 
title, or (iii) a Federally-qualified health center or 
17 
rural health clinic that has at least 30 percent of the 
18 
center’s or clinic’s patient volume (as estimated in 
19 
accordance with standards established by the Sec20 
retary) attributable to individuals who are receiving 
21 


medical assistance under this title. 
22 
An eligible professional shall not qualify as a Medicaid 
23 
provider under this subsection unless the eligible profes24 
sional has waived, in a manner specified by the Secretary, 
25 
any right to payment under section 1848(o) with respect 

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522 
1 
to the adoption or support of certified EHR technology 
2 
by the professional. In applying clauses (ii) and (iii) of 
3 
subparagraph (B), the standards established by the Sec4 
retary for patient volume shall include individuals enrolled 
5 
in a Medicaid managed care plan (under section 1903(m) 
6 
or section 1932). 
7 
‘‘(3) In this subsection and subsection (a)(3)(F): 
8 
‘‘(A) The term ‘certified EHR technology’ 
9 
means a qualified electronic health record (as de10 
fined in 3000(13) of the Public Health Service Act) 
11 
that is certified pursuant to section 3001(c)(5) of 
12 
such Act as meeting standards adopted under sec13 
tion 3004 of such Act that are applicable to the type 
14 
of record involved (as determined by the Secretary, 
15 
such as an ambulatory electronic health record for 
16 
office-based physicians or an inpatient hospital elec17 
tronic health record for hospitals). 
18 
‘‘(B) The term ‘eligible professional’ means a 
19 
physician as defined in paragraphs (1) and (2) of 
20 
section 1861(r), and includes a certified nurse mid21 


wife and a nurse practitioner. 

22 


‘‘(C) The term ‘hospital-based’ means, with re


23 


spect to an eligible professional, a professional (such 

24 


as a pathologist, anesthesiologist, or emergency phy


25 


sician) who furnishes substantially all of the individ


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523 

1 


ual’s professional services in a hospital setting 

2 


(whether inpatient or outpatient) and through the 

3 


use of the facilities and equipment, including com


4 


puter equipment, of the hospital. 

5 


‘‘(4)(A) The term ‘allowable costs’ means, with re6 
spect to certified EHR technology of a Medicaid provider, 
7 
costs of such technology (and support services including 
8 
maintenance and training that is for, or is necessary for 
9 
the adoption and operation of, such technology) as deter10 
mined by the Secretary to be reasonable. 
11 
‘‘(B) The term ‘net allowable costs’ means allowable 
12 
costs reduced by any payment that is made to the Med13 
icaid provider involved from any other source that is di14 
rectly attributable to payment for certified EHR tech15 
nology or services described in subparagraph (A). 
16 
‘‘(C) In no case shall— 
17 
‘‘(i) the aggregate allowable costs under this 
18 
subsection (covering one or more years) with respect 
19 
to a Medicaid provider described in paragraph 
20 
(2)(A) for purchase and initial implementation of 
21 


certified EHR technology (and services described in 

22 


subparagraph (A)) exceed $25,000 or include costs 

23 


over a period of longer than 5 years; 

24 


‘‘(ii) for costs not described in clause (i) relat


25 


ing to the operation, maintenance, or use of certified 

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524 

1 


EHR technology, the annual allowable costs under 

2 


this subsection with respect to such a Medicaid pro


3 


vider for costs not described in clause (i) for any 

4 


year exceed $10,000; 

5 


‘‘(iii) payment described in paragraph (1) for 
6 
costs described in clause (ii) be made with respect 
7 
to such a Medicaid provider over a period of more 
8 
than 5 years; 
9 
‘‘(iv) the aggregate allowable costs under this 
10 
subsection with respect to such a Medicaid provider 
11 
for all costs exceed $75,000; or 
12 
‘‘(v) the allowable costs, whether for purchase 
13 
and initial implementation, maintenance, or other14 
wise, for a Medicaid provider described in paragraph 
15 
(2)(B)(iii) exceed such aggregate or annual limita16 
tion as the Secretary shall establish, based on an 
17 
amount determined by the Secretary as being ade18 
quate to adopt and maintain certified EHR tech19 
nology, consistent with paragraph (6). 
20 
‘‘(5) Payments described in paragraph (1) are not in 
21 
accordance with this subsection unless the following re22 
quirements are met: 
23 


‘‘(A) The State provides assurances satisfactory 

24 


to the Secretary that amounts received under sub


25 


section (a)(3)(F) with respect to costs of a Medicaid 

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525 

1 


provider are paid directly to such provider without 

2 


any deduction or rebate. 

3 


‘‘(B) Such Medicaid provider is responsible for 

4 


payment of the costs described in such paragraph 

5 


that are not provided under this title. 
6 
‘‘(C) With respect to payments to such Med7 
icaid provider for costs other than costs related to 
8 
the initial adoption of certified EHR technology, the 
9 
Medicaid provider demonstrates meaningful use of 
10 
certified EHR technology through a means that is 
11 
approved by the State and acceptable to the Sec12 
retary, and that may be based upon the methodolo13 
gies applied under section 1848(o) or 1886(n). 
14 
‘‘(D) To the extent specified by the Secretary, 
15 
the certified EHR technology is compatible with 
16 
State or Federal administrative management sys17 
tems. 
18 
‘‘(6)(A) In no case shall the payments described in 
19 
paragraph (1), with respect to a hospital, exceed in the 
20 
aggregate the product of— 
21 


‘‘(i) the overall hospital EHR amount for the 

22 


hospital computed under subparagraph (B); and 

23 


‘‘(ii) the Medicaid share for such hospital com


24 


puted under subparagraph (C). 

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526 

1 


‘‘(B) For purposes of this paragraph, the overall hos2 
pital EHR amount, with respect to a hospital, is the sum 
3 
of the applicable amounts specified in section 
4 
1886(n)(2)(A) for such hospital for the first 4 payment 
5 
years (as estimated by the Secretary) determined as if the 
6 
Medicare share specified in clause (ii) of such section were 

7 
1. The Secretary shall publish in the Federal Register the 
8 
overall hospital EHR amount for each hospital eligible for 
9 
payments under this subsection. In computing amounts 
10 
under paragraph 1886(n)(2)(C) for payment years after 
11 
the first payment year, the Secretary shall assume that 
12 
in subsequent payment years discharges increase at the 
13 
average annual rate of growth of the most recent 3 years 
14 
for which discharge data are available per year. 
15 
‘‘(C) The Medicaid share computed under this sub16 
paragraph, for a hospital for a period specified by the Sec17 
retary, shall be calculated in the same manner as the 
18 
Medicare share under section 1886(n)(2)(D) for such a 
19 
hospital and period, except that there shall be substituted 
20 
for the numerator under clause (i) of such section the 
21 
amount that is equal to the number of inpatient-bed-days 
22 
(as established by the Secretary) which are attributable 
23 
to individuals who are receiving medical assistance under 
24 
this title and who are not described in section 
25 
1886(n)(2)(D)(i). In computing inpatient-bed-days under 

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527 
1 
the previous sentence, the Secretary shall take into ac2 
count inpatient-bed-days attributable to inpatient-bed3 
days that are paid for individuals enrolled in a Medicaid 
4 
managed care plan (under section 1903(m) or section 
5 
1932). 
6 
‘‘(7) With respect to health care providers other than 
7 
hospitals, the Secretary shall ensure coordination of the 
8 
different programs for payment of such health care pro9 
viders for adoption or use of health information technology 
10 
(including certified EHR technology), as well as payments 
11 
for such health care providers provided under this title or 
12 
title XVIII, to assure no duplication of funding. 
13 
‘‘(8) In carrying out paragraph (5)(C), the State and 
14 
Secretary shall seek, to the maximum extent practicable, 
15 
to avoid duplicative requirements from Federal and State 
16 
Governments to demonstrate meaningful use of certified 
17 
EHR technology under this title and title XVIII. In doing 
18 
so, the Secretary may deem satisfaction of requirements 
19 
for such meaningful use for a payment year under title 
20 
XVIII to be sufficient to qualify as meaningful use under 
21 
this subsection. The Secretary may also specify the report22 
ing periods under this subsection in order to carry out this 
23 
paragraph. 
24 


‘‘(9) In order to be provided Federal financial partici25 
pation under subsection (a)(3)(F)(ii), a State must dem


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528 
1 
onstrate to the satisfaction of the Secretary, that the 
2 
State— 
3 


‘‘(A) is using the funds provided for the pur


4 


poses of administering payments under this sub


5 


section, including tracking of meaningful use by 
6 
Medicaid providers; 
7 
‘‘(B) is conducting adequate oversight of the 
8 
program under this subsection, including routine 
9 
tracking of meaningful use attestations and report10 
ing mechanisms; and 
11 
‘‘(C) is pursuing initiatives to encourage the 
12 
adoption of certified EHR technology to promote 
13 
health care quality and the exchange of health care 
14 
information under this title, subject to applicable 
15 
laws and regulations governing such exchange. 
16 
‘‘(10) The Secretary shall periodically submit reports 
17 
to the Committee on Energy and Commerce of the House 
18 
of Representatives and the Committee on Finance of the 
19 
Senate on status, progress, and oversight of payments 
20 
under paragraph (1).’’. 
21 


(b) IMPLEMENTATION FUNDING.—In addition to 
22 
funds otherwise available, out of any funds in the Treas23 
ury not otherwise appropriated, there are appropriated to 
24 
the Secretary of Health and Human Services for the Cen25 
ter for Medicare & Medicaid Services Program Manage-

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529 
1 
ment Account, $40,000,000 for each of fiscal years 2009 
2 
through 2015 and $20,000,000 for each succeeding fiscal 
3 
year through fiscal year 2019, which shall be available for 
4 
purposes of carrying out the provisions of (and the amend5 
ments made by) this part. Amounts appropriated under 
6 
this subsection for a fiscal year shall be available until ex7 
pended. 
8 
SEC. 4322. MEDICAID NURSING FACILITY GRANT PROGRAM. 
9 
(a) IN GENERAL.—The Secretary shall establish a 
10 
grant program to enhance the meaningful use of certified 
11 
electronic health records in nursing facilities. In estab12 
lishing such program, the Secretary shall use payment in13 
centives for meaningful use of certified EHR technology, 
14 
similar to those specified in sections 4311, 4312, and 
15 
4321, as appropriate. For the purpose of such incentives, 
16 
the Secretary shall define meaningful use in a manner so 
17 
as to be consistent with such sections to the extent prac18 
ticable. The Secretary shall award funds to not more than 
19 
10 States to carry out activities under this section. 
20 
(b) ACTIVITIES.—The Secretary shall require a State 
21 
participating in the grant program to— 
22 


(1) provide payment incentives to nursing facili


23 


ties contingent on the demonstration of meaningful 

24 


use of certified electronic health records; 

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530 

1 


(2) require participating nursing facilities to en


2 


gage in programs to improve the quality and coordi


3 


nation of care through the use of certified EHR 

4 


technology, including for persons who are repeatedly 

5 


admitted to acute care hospitals from the nursing 
6 
facility and persons who receive services across mul7 
tiple medical and social services providers (including 
8 
facility and community-based providers); and 
9 
(3) provide for training of appropriate per10 
sonnel in the use of certified electronic health 
11 
records. 
12 
(c) TARGETING.—The Secretary shall require a State 
13 
participating in the grant program to target nursing facili14 
ties with a significant percentage (but not less than the 
15 
average in the State) of the facility’s patient volume (as 
16 
estimated in accordance with standards established by the 
17 
Secretary) attributable to individuals who are receiving 
18 
medical assistance under title XIX of the Social Security 
19 
Act. 
20 
(d) PRIORITY.—In making grants under this section, 
21 
the Secretary shall give priority to States with a high pro22 
portion of total national nursing facility days paid under 
23 
title XIX of the Social Security Act. 
24 


(e) LIMITATIONS ON USE OF FUNDS.—A State may 
25 
not make payments to a nursing facility in excess of 90 

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531 
1 
percent of the costs of such nursing facility for the adop2 
tion and operation of certified EHR technology. 
3 


(f) APPLICATION.—No grant may be made to a State 
4 
under this section unless the State submits an application 
5 
to the Secretary in a form and manner specified by the 
6 
Secretary. 
7 
(g) REPORT.—Not later than the end of the 3-year 
8 
period beginning on the date that grants under this sec9 
tion are first awarded, the Secretary shall submit a report 
10 
to Congress on the activities under this grant program and 
11 
the effect of this program on quality and coordination of 
12 
care under title XIX of the Social Security Act. 
13 
(h) APPROPRIATION.—Out of any money in the 
14 
Treasury not otherwise appropriated, there is appro15 
priated to the Secretary of Health and Human Services 
16 
to carry out this section $600,000,000, to remain available 
17 
until expended. 
18 
Subtitle D—Privacy 
19 
SEC. 4400. DEFINITIONS. 
20 
In this subtitle, except as specified otherwise: 
21 


(1) BREACH.—The term ‘‘breach’’ means the 

22 


unauthorized acquisition, access, use, or disclosure 

23 


of protected health information which compromises 

24 


the security, privacy, or integrity of protected health 

25 


information maintained by or on behalf of a person. 

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532 

1 


Such term does not include any unintentional acqui


2 


sition, access, use, or disclosure of such information 

3 


by an employee or agent of the covered entity or 

4 


business associate involved if such acquisition, ac


5 


cess, use, or disclosure, respectively, was made in 
6 
good faith and within the course and scope of the 
7 
employment or other contractual relationship of such 
8 
employee or agent, respectively, with the covered en9 
tity or business associate and if such information is 
10 
not further acquired, accessed, used, or disclosed by 
11 
such employee or agent. 
12 
(2) BUSINESS ASSOCIATE.—The term ‘‘business 
13 
associate’’ has the meaning given such term in sec14 
tion 160.103 of title 45, Code of Federal Regula15 
tions. 
16 
(3) COVERED ENTITY.—The term ‘‘covered en17 
tity’’ has the meaning given such term in section 
18 
160.103 of title 45, Code of Federal Regulations. 
19 
(4) DISCLOSE.—The terms ‘‘disclose’’ and ‘‘dis20 
closure’’ have the meaning given the term ‘‘disclo21 


sure’’ in section 160.103 of title 45, Code of Federal 

22 


Regulations. 

23 


(5) ELECTRONIC HEALTH RECORD.—The term 

24 


‘‘electronic health record’’ means an electronic 

25 


record of health-related information on an individual 

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533 

1 


that is created, gathered, managed, and consulted by 

2 


authorized health care clinicians and staff. 

3 


(6) HEALTH CARE OPERATIONS.—The term 

4 


‘‘health care operation’’ has the meaning given such 

5 


term in section 164.501 of title 45, Code of Federal 
6 
Regulations. 
7 
(7) HEALTH CARE PROVIDER.—The term 
8 
‘‘health care provider’’ has the meaning given such 
9 
term in section 160.103 of title 45, Code of Federal 
10 
Regulations. 
11 
(8) HEALTH PLAN.—The term ‘‘health plan’’ 
12 
has the meaning given such term in section 1171(5) 
13 
of the Social Security Act. 
14 
(9) NATIONAL COORDINATOR.—The term ‘‘Na15 
tional Coordinator’’ means the head of the Office of 
16 
the National Coordinator for Health Information 
17 
Technology established under section 3001(a) of the 
18 
Public Health Service Act, as added by section 
19 
4101. 
20 
(10) PAYMENT.—The term ‘‘payment’’ has the 
21 


meaning given such term in section 164.501 of title 

22 


45, Code of Federal Regulations. 
23 
(11) PERSONAL HEALTH RECORD.—The term 
24 


‘‘personal health record’’ means an electronic record 

25 


of individually identifiable health information on an 

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534 

1 


individual that can be drawn from multiple sources 

2 


and that is managed, shared, and controlled by or 

3 


for the individual. 

4 


(12) PROTECTED HEALTH INFORMATION.—The 

5 


term ‘‘protected health information’’ has the mean6 
ing given such term in section 160.103 of title 45, 
7 
Code of Federal Regulations. 
8 
(13) SECRETARY.—The term ‘‘Secretary’’ 
9 
means the Secretary of Health and Human Services. 
10 
(14) SECURITY.—The term ‘‘security’’ has the 
11 
meaning given such term in section 164.304 of title 
12 
45, Code of Federal Regulations. 
13 
(15) STATE.—The term ‘‘State’’ means each of 
14 
the several States, the District of Columbia, Puerto 
15 
Rico, the Virgin Islands, Guam, American Samoa, 
16 
and the Northern Mariana Islands. 
17 
(16) TREATMENT.—The term ‘‘treatment’’ has 
18 
the meaning given such term in section 164.501 of 
19 
title 45, Code of Federal Regulations. 
20 
(17) USE.—The term ‘‘use’’ has the meaning 
21 


given such term in section 160.103 of title 45, Code 

22 


of Federal Regulations. 
23 
(18) VENDOR OF PERSONAL HEALTH 
24 


RECORDS.—The term ‘‘vendor of personal health 

25 


records’’ means an entity, other than a covered enti


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535 

1 


ty (as defined in paragraph (3)), that offers or 

2 


maintains a personal health record. 

3 


PART I—IMPROVED PRIVACY PROVISIONS AND 

4 


SECURITY PROVISIONS 
5 
SEC. 4401. APPLICATION OF SECURITY PROVISIONS AND 
6 
PENALTIES TO BUSINESS ASSOCIATES OF 
7 
COVERED ENTITIES; ANNUAL GUIDANCE ON 
8 
SECURITY PROVISIONS. 
9 
(a) APPLICATION OF SECURITY PROVISIONS.—Sec10 
tions 164.308, 164.310, 164.312, and 164.316 of title 45, 
11 
Code of Federal Regulations, shall apply to a business as12 
sociate of a covered entity in the same manner that such 
13 
sections apply to the covered entity. The additional re14 
quirements of this title that relate to security and that 
15 
are made applicable with respect to covered entities shall 
16 
also be applicable to such a business associate and shall 
17 
be incorporated into the business associate agreement be18 
tween the business associate and the covered entity. 
19 
(b) APPLICATION OF CIVIL AND CRIMINAL PEN20 
ALTIES.—In the case of a business associate that violates 
21 
any security provision specified in subsection (a), sections 
22 
1176 and 1177 of the Social Security Act (42 U.S.C. 
23 
1320d-5, 1320d-6) shall apply to the business associate 
24 
with respect to such violation in the same manner such 

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536 
1 
sections apply to a covered entity that violates such secu2 
rity provision. 
3 


(c) ANNUAL GUIDANCE.—For the first year begin4 
ning after the date of the enactment of this Act and annu5 
ally thereafter, the Secretary of Health and Human Serv6 
ices shall, in consultation with industry stakeholders, an7 
nually issue guidance on the most effective and appro8 
priate technical safeguards for use in carrying out the sec9 
tions referred to in subsection (a) and the security stand10 
ards in subpart C of part 164 of title 45, Code of Federal 
11 
Regulations, including the use of standards developed 
12 
under section 3002(b)(2)(B)(vi) of the Public Health 
13 
Service Act, as added by section 4101, as such provisions 
14 
are in effect as of the date before the enactment of this 
15 
Act. 
16 
SEC. 4402. NOTIFICATION IN THE CASE OF BREACH. 
17 
(a) IN GENERAL.—A covered entity that accesses, 
18 
maintains, retains, modifies, records, stores, destroys, or 
19 
otherwise holds, uses, or discloses unsecured protected 
20 
health information (as defined in subsection (h)(1)) shall, 
21 
in the case of a breach of such information that is discov22 
ered by the covered entity, notify each individual whose 
23 
unsecured protected health information has been, or is 
24 
reasonably believed by the covered entity to have been, 
25 
accessed, acquired, or disclosed as a result of such breach. 

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537 

1 


(b) NOTIFICATION OF COVERED ENTITY BY BUSI2 
NESS ASSOCIATE.—A business associate of a covered enti3 
ty that accesses, maintains, retains, modifies, records, 
4 
stores, destroys, or otherwise holds, uses, or discloses un5 
secured protected health information shall, following the 
6 
discovery of a breach of such information, notify the cov7 
ered entity of such breach. Such notice shall include the 
8 
identification of each individual whose unsecured protected 
9 
health information has been, or is reasonably believed by 
10 
the business associate to have been, accessed, acquired, 
11 
or disclosed during such breach. 
12 
(c) BREACHES TREATED AS DISCOVERED.—For pur13 
poses of this section, a breach shall be treated as discov14 
ered by a covered entity or by a business associate as of 
15 
the first day on which such breach is known to such entity 
16 
or associate, respectively, (including any person, other 
17 
than the individual committing the breach, that is an em18 
ployee, officer, or other agent of such entity or associate, 
19 
respectively) or should reasonably have been known to 
20 
such entity or associate (or person) to have occurred. 
21 


(d) TIMELINESS OF NOTIFICATION.— 

22 


(1) IN GENERAL.—Subject to subsection (g), all 

23 


notifications required under this section shall be 

24 


made without unreasonable delay and in no case 

25 


later than 60 calendar days after the discovery of a 

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538 

1 


breach by the covered entity involved (or business 

2 


associate involved in the case of a notification re


3 


quired under subsection (b)). 

4 


(2) BURDEN OF PROOF.—The covered entity in


5 


volved (or business associate involved in the case of 
6 
a notification required under subsection (b)), shall 
7 
have the burden of demonstrating that all notifica8 
tions were made as required under this part, includ9 
ing evidence demonstrating the necessity of any 
10 
delay. 
11 
(e) METHODS OF NOTICE.— 
12 
(1) INDIVIDUAL NOTICE.—Notice required 
13 
under this section to be provided to an individual, 
14 
with respect to a breach, shall be provided promptly 
15 
and in the following form: 
16 
(A) Written notification by first-class mail 
17 
to the individual (or the next of kin of the indi18 
vidual if the individual is deceased) at the last 
19 
known address of the individual or the next of 
20 
kin, respectively, or, if specified as a preference 
21 


by the individual, by electronic mail. The notifi


22 


cation may be provided in one or more mailings 

23 


as information is available. 

24 


(B) In the case in which there is insuffi


25 


cient, or out-of-date contact information (in


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539 

1 


cluding a phone number, email address, or any 

2 


other form of appropriate communication) that 

3 


precludes direct written (or, if specified by the 

4 


individual under subparagraph (A), electronic) 

5 


notification to the individual, a substitute form 
6 
of notice shall be provided, including, in the 
7 
case that there are 10 or more individuals for 
8 
which there is insufficient or out-of-date contact 
9 
information, a conspicuous posting for a period 
10 
determined by the Secretary on the home page 
11 
of the Web site of the covered entity involved or 
12 
notice in major print or broadcast media, in13 
cluding major media in geographic areas where 
14 
the individuals affected by the breach likely re15 
side. Such a notice in media or web posting will 
16 
include a toll-free phone number where an indi17 
vidual can learn whether or not the individual’s 
18 
unsecured protected health information is pos19 
sibly included in the breach. 
20 
(C) In any case deemed by the covered en21 


tity involved to require urgency because of pos


22 


sible imminent misuse of unsecured protected 

23 


health information, the covered entity, in addi


24 


tion to notice provided under subparagraph (A), 

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540 

1 


may provide information to individuals by tele


2 


phone or other means, as appropriate. 

3 


(2) MEDIA NOTICE.—Notice shall be provided 

4 


to prominent media outlets serving a State or juris


5 


diction, following the discovery of a breach described 
6 
in subsection (a), if the unsecured protected health 
7 
information of more than 500 residents of such 
8 
State or jurisdiction is, or is reasonably believed to 
9 
have been, accessed, acquired, or disclosed during 
10 
such breach. 
11 
(3) NOTICE TO SECRETARY.—Notice shall be 
12 
provided to the Secretary by covered entities of un13 
secured protected health information that has been 
14 
acquired or disclosed in a breach. If the breach was 
15 
with respect to 500 or more individuals than such 
16 
notice must be provided immediately. If the breach 
17 
was with respect to less than 500 individuals, the 
18 
covered entity involved may maintain a log of any 
19 
such breach occurring and annually submit such a 
20 
log to the Secretary documenting such breaches oc21 


curring during the year involved. 
22 
(4) POSTING ON HHS PUBLIC WEBSITE.—The 
23 


Secretary shall make available to the public on the 

24 


Internet website of the Department of Health and 

25 


Human Services a list that identifies each covered 

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541 

1 


entity involved in a breach described in subsection 

2 


(a) in which the unsecured protected health informa


3 


tion of more than 500 individuals is acquired or dis


4 


closed. 

5 


(f) CONTENT OF NOTIFICATION.—Regardless of the 
6 
method by which notice is provided to individuals under 
7 
this section, notice of a breach shall include, to the extent 
8 
possible, the following: 
9 
(1) A brief description of what happened, in10 
cluding the date of the breach and the date of the 
11 
discovery of the breach, if known. 
12 
(2) A description of the types of unsecured pro13 
tected health information that were involved in the 
14 
breach (such as full name, Social Security number, 
15 
date of birth, home address, account number, or dis16 
ability code). 
17 
(3) The steps individuals should take to protect 
18 
themselves from potential harm resulting from the 
19 
breach. 
20 
(4) A brief description of what the covered enti21 


ty involved is doing to investigate the breach, to 

22 


mitigate losses, and to protect against any further 
23 
breaches. 
24 


(5) Contact procedures for individuals to ask 

25 


questions or learn additional information, which 

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542 

1 


shall include a toll-free telephone number, an e-mail 

2 


address, Web site, or postal address. 

3 


(g) DELAY OF NOTIFICATION AUTHORIZED FOR LAW 
4 
ENFORCEMENT PURPOSES.—If a law enforcement official 
5 
determines that a notification, notice, or posting required 
6 
under this section would impede a criminal investigation 
7 
or cause damage to national security, such notification, 
8 
notice, or posting shall be delayed in the same manner 
9 
as provided under section 164.528(a)(2) of title 45, Code 
10 
of Federal Regulations, in the case of a disclosure covered 
11 
under such section. 
12 
(h) UNSECURED PROTECTED HEALTH INFORMA13 
TION.— 
14 
(1) DEFINITION.— 
15 
(A) IN GENERAL.—Subject to subpara16 
graph (B), for purposes of this section, the 
17 
term ‘‘unsecured protected health information’’ 
18 
means protected health information that is not 
19 
secured through the use of a technology or 
20 
methodology specified by the Secretary in the 
21 


guidance issued under paragraph (2). 
22 
(B) EXCEPTION IN CASE TIMELY GUID23 


ANCE NOT ISSUED.—In the case that the Sec


24 


retary does not issue guidance under paragraph 

25 


(2) by the date specified in such paragraph, for 

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543 

1 


purposes of this section, the term ‘‘unsecured 

2 


protected health information’’ shall mean pro


3 


tected health information that is not secured by 

4 


a technology standard that renders protected 

5 


health information unusable, unreadable, or in6 
decipherable to unauthorized individuals and is 
7 
developed or endorsed by a standards devel8 
oping organization that is accredited by the 
9 
American National Standards Institute. 
10 
(2) GUIDANCE.—For purposes of paragraph (1) 
11 
and section 407(f)(3), not later than the date that 
12 
is 60 days after the date of the enactment of this 
13 
Act, the Secretary shall, after consultation with 
14 
stakeholders, issue (and annually update) guidance 
15 
specifying the technologies and methodologies that 
16 
render protected health information unusable, 
17 
unreadable, or indecipherable to unauthorized indi18 
viduals, including use of standards developed under 
19 
section 3002(b)(2)(B)(vi) of the Public Health Serv20 
ice Act, as added by section 4101. 
21 


(i) REPORT TO CONGRESS ON BREACHES.— 

22 


(1) IN GENERAL.—Not later than 12 months 

23 


after the date of the enactment of this Act and an


24 


nually thereafter, the Secretary shall prepare and 

25 


submit to the Committee on Finance and the Com


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544 

1 


mittee on Health, Education, Labor, and Pensions 

2 


of the Senate and the Committee on Ways and 

3 


Means and the Committee on Energy and Commerce 

4 


of the House of Representatives a report containing 

5 


the information described in paragraph (2) regard6 
ing breaches for which notice was provided to the 
7 
Secretary under subsection (e)(3). 
8 
(2) INFORMATION.—The information described 
9 
in this paragraph regarding breaches specified in 
10 
paragraph (1) shall include— 
11 
(A) the number and nature of such 
12 
breaches; and 
13 
(B) actions taken in response to such 
14 
breaches. 
15 
(j) REGULATIONS; EFFECTIVE DATE.—To carry out 
16 
this section, the Secretary of Health and Human Services 
17 
shall promulgate interim final regulations by not later 
18 
than the date that is 180 days after the date of the enact19 
ment of this title. The provisions of this section shall apply 
20 
to breaches that are discovered on or after the date that 
21 
is 30 days after the date of publication of such interim 
22 
final regulations. 

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545 

1 
SEC. 4403. EDUCATION ON HEALTH INFORMATION PRI2 


VACY. 

3 


(a) REGIONAL OFFICE PRIVACY ADVISORS.—Not 
4 
later than 6 months after the date of the enactment of 
5 
this Act, the Secretary shall designate an individual in 
6 
each regional office of the Department of Health and 
7 
Human Services to offer guidance and education to cov8 
ered entities, business associates, and individuals on their 
9 
rights and responsibilities related to Federal privacy and 
10 
security requirements for protected health information. 
11 
(b) EDUCATION INITIATIVE ON USES OF HEALTH IN12 
FORMATION.—Not later than 12 months after the date of 
13 
the enactment of this Act, the Office for Civil Rights with14 
in the Department of Health and Human Services shall 
15 
develop and maintain a multi-faceted national education 
16 
initiative to enhance public transparency regarding the 
17 
uses of protected health information, including programs 
18 
to educate individuals about the potential uses of their 
19 
protected health information, the effects of such uses, and 
20 
the rights of individuals with respect to such uses. Such 
21 
programs shall be conducted in a variety of languages and 
22 
present information in a clear and understandable man23 
ner. 

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546 

1 
SEC. 4404. APPLICATION OF PRIVACY PROVISIONS AND 
2 
PENALTIES TO BUSINESS ASSOCIATES OF 
3 


COVERED ENTITIES. 

4 


(a) APPLICATION OF CONTRACT REQUIREMENTS.— 
5 
In the case of a business associate of a covered entity that 
6 
obtains or creates protected health information pursuant 
7 
to a written contract (or other written arrangement) de8 
scribed in section 164.502(e)(2) of title 45, Code of Fed9 
eral Regulations, with such covered entity, the business 
10 
associate may use and disclose such protected health infor11 
mation only if such use or disclosure, respectively, is in 
12 
compliance with each applicable requirement of section 
13 
164.504(e) of such title. The additional requirements of 
14 
this subtitle that relate to privacy and that are made ap15 
plicable with respect to covered entities shall also be appli16 
cable to such a business associate and shall be incor17 
porated into the business associate agreement between the 
18 
business associate and the covered entity. 
19 
(b) APPLICATION OF KNOWLEDGE ELEMENTS ASSO20 
CIATED WITH CONTRACTS.—Section 164.504(e)(1)(ii) of 
21 
title 45, Code of Federal Regulations, shall apply to a 
22 
business associate described in subsection (a), with respect 
23 
to compliance with such subsection, in the same manner 
24 
that such section applies to a covered entity, with respect 
25 
to compliance with the standards in sections 164.502(e) 
26 
and 164.504(e) of such title, except that in applying such 

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547 
1 
section 164.504(e)(1)(ii) each reference to the business as2 
sociate, with respect to a contract, shall be treated as a 
3 
reference to the covered entity involved in such contract. 
4 


(c) APPLICATION OF CIVIL AND CRIMINAL PEN5 
ALTIES.—In the case of a business associate that violates 
6 
any provision of subsection (a) or (b), the provisions of 
7 
sections 1176 and 1177 of the Social Security Act (42 
8 
U.S.C. 1320d-5, 1320d-6) shall apply to the business as9 
sociate with respect to such violation in the same manner 
10 
as such provisions apply to a person who violates a provi11 
sion of part C of title XI of such Act. 
12 
SEC. 4405. RESTRICTIONS ON CERTAIN DISCLOSURES AND 
13 
SALES OF HEALTH INFORMATION; ACCOUNT14 
ING OF CERTAIN PROTECTED HEALTH IN15 
FORMATION DISCLOSURES; ACCESS TO CER16 
TAIN INFORMATION IN ELECTRONIC FOR17 
MAT. 
18 
(a) REQUESTED RESTRICTIONS ON CERTAIN DIS


19 
CLOSURES OF HEALTH INFORMATION.—In the case that 
20 
an individual requests under paragraph (a)(1)(i)(A) of 
21 
section 164.522 of title 45, Code of Federal Regulations, 
22 
that a covered entity restrict the disclosure of the pro23 
tected health information of the individual, notwith24 
standing paragraph (a)(1)(ii) of such section, the covered 
25 
entity must comply with the requested restriction if— 

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548 


1 


(1) except as otherwise required by law, the dis


2 


closure is to a health plan for purposes of carrying 

3 


out payment or health care operations (and is not 

4 


for purposes of carrying out treatment); and 

5 


(2) the protected health information pertains 
6 
solely to a health care item or service for which the 
7 
health care provider involved has been paid out of 
8 
pocket in full. 
9 
(b) DISCLOSURES REQUIRED TO BE LIMITED TO 
10 
THE LIMITED DATA SET OR THE MINIMUM NEC11 
ESSARY.— 
12 
(1) IN GENERAL.— 
13 
(A) IN GENERAL.—Subject to subpara14 
graph (B), a covered entity shall be treated as 
15 
being in compliance with section 164.502(b)(1) 
16 
of title 45, Code of Federal Regulations, with 
17 
respect to the use, disclosure, or request of pro18 
tected health information described in such sec19 
tion, only if the covered entity limits such pro20 
tected health information, to the extent prac21 


ticable, to the limited data set (as defined in 

22 


section 164.514(e)(2) of such title) or, if needed 

23 


by such entity, to the minimum necessary to ac


24 


complish the intended purpose of such use, dis


25 


closure, or request, respectively. 

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549 


1 
(B) GUIDANCE.—Not later than 18 
2 
months after the date of the enactment of this 
3 
section, the Secretary shall issue guidance on 
4 
what constitutes ‘‘minimum necessary’’ for pur5 
poses of subpart E of part 164 of title 45, Code 
6 
of Federal Regulation. In issuing such guidance 
7 
the Secretary shall take into consideration the 
8 
guidance under section 4424(c). 
9 
(C) SUNSET.—Subparagraph (A) shall not 
10 
apply on and after the effective date on which 
11 
the Secretary issues the guidance under sub12 
paragraph (B). 
13 
(2) DETERMINATION OF MINIMUM NEC14 
ESSARY.—For purposes of paragraph (1), in the 
15 
case of the disclosure of protected health informa16 
tion, the covered entity or business associate dis17 
closing such information shall determine what con18 
stitutes the minimum necessary to accomplish the 
19 
intended purpose of such disclosure. 
20 
(3) APPLICATION OF EXCEPTIONS.—The excep21 
tions described in section 164.502(b)(2) of title 45, 
22 
Code of Federal Regulations, shall apply to the re23 
quirement under paragraph (1) as of the effective 
24 
date described in section 4423 in the same manner 

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550 

1 


that such exceptions apply to section 164.502(b)(1) 

2 


of such title before such date. 

3 


(4) RULE OF CONSTRUCTION.—Nothing in this 

4 


subsection shall be construed as affecting the use, 

5 


disclosure, or request of protected health information 
6 
that has been de-identified. 
7 
(c) ACCOUNTING OF CERTAIN PROTECTED HEALTH 
8 
INFORMATION DISCLOSURES REQUIRED IF COVERED EN9 
TITY USES ELECTRONIC HEALTH RECORD.— 
10 
(1) IN GENERAL.—In applying section 164.528 
11 
of title 45, Code of Federal Regulations, in the case 
12 
that a covered entity uses or maintains an electronic 
13 
health record with respect to protected health infor14 
mation— 
15 
(A) the exception under paragraph 
16 
(a)(1)(i) of such section shall not apply to dis17 
closures through an electronic health record 
18 
made by such entity of such information; and 
19 
(B) an individual shall have a right to re20 
ceive an accounting of disclosures described in 
21 


such paragraph of such information made by 

22 


such covered entity during only the three years 

23 


prior to the date on which the accounting is re24 
quested. 

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551 

1 


(2) REGULATIONS.—The Secretary shall pro


2 


mulgate regulations on what information shall be 

3 


collected about each disclosure referred to in para


4 


graph (1)(A) not later than 18 months after the 

5 


date on which the Secretary adopts standards on ac6 
counting for disclosure described in the section 
7 
3002(b)(2)(B)(iv) of the Public Health Service Act, 
8 
as added by section 4101. Such regulations shall 
9 
only require such information to be collected through 
10 
an electronic health record in a manner that takes 
11 
into account the interests of individuals in learning 
12 
the circumstances under which their protected health 
13 
information is being disclosed and takes into account 
14 
the administrative burden of accounting for such 
15 
disclosures. 
16 
(3) CONSTRUCTION.—Nothing in this sub17 
section shall be construed as requiring a covered en18 
tity to account for disclosures of protected health in19 
formation that are not made by such covered entity 
20 
or by a business associate acting on behalf of the 
21 


covered entity. 

22 


(4) EFFECTIVE DATE.— 
23 
(A) CURRENT USERS OF ELECTRONIC 
24 


RECORDS.—In the case of a covered entity inso


25 


far as it acquired an electronic health record as 

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552 

1 


of January 1, 2009, paragraph (1) shall apply 

2 


to disclosures, with respect to protected health 

3 


information, made by the covered entity from 

4 


such a record on and after January 1, 2014. 

5 


(B) OTHERS.—In the case of a covered en6 
tity insofar as it acquires an electronic health 
7 
record after January 1, 2009, paragraph (1) 
8 
shall apply to disclosures, with respect to pro9 
tected health information, made by the covered 
10 
entity from such record on and after the later 
11 
of the following: 
12 
(i) January 1, 2011; or 
13 
(ii) the date that it acquires an elec14 
tronic health record. 
15 
(d) REVIEW OF HEALTH CARE OPERATIONS.—Not 
16 
later than 18 months after the date of the enactment of 
17 
this title, the Secretary shall promulgate regulations to 
18 
eliminate from the definition of health care operations 
19 
under section 164.501 of title 45, Code of Federal Regula20 
tions, those activities that can reasonably and efficiently 
21 
be conducted through the use of information that is de22 
identified (in accordance with the requirements of section 
23 
164.514(b) of such title) or that should require a valid 
24 
authorization for use or disclosure. In promulgating such 
25 
regulations, the Secretary may choose to narrow or clarify 

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553 
1 
activities that the Secretary chooses to retain in the defini2 
tion of health care operations and the Secretary shall take 
3 
into account the report under section 424(d). In such reg4 
ulations the Secretary shall specify the date on which such 
5 
regulations shall apply to disclosures made by a covered 
6 
entity, but in no case would such date be sooner than the 
7 
date that is 24 months after the date of the enactment 
8 
of this section. 
9 
(e) PROHIBITION ON SALE OF ELECTRONIC HEALTH 
10 
RECORDS OR PROTECTED HEALTH INFORMATION.— 
11 
(1) IN GENERAL.—Except as provided in para12 
graph (2), a covered entity or business associate 
13 
shall not directly or indirectly receive remuneration 
14 
in exchange for any protected health information of 
15 
an individual unless the covered entity obtained from 
16 
the individual, in accordance with section 164.508 of 
17 
title 45, Code of Federal Regulations, a valid au18 
thorization that includes, in accordance with such 
19 
section, a specification of whether the protected 
20 
health information can be further exchanged for re21 


muneration by the entity receiving protected health 

22 


information of that individual. 

23 


(2) EXCEPTIONS.—Paragraph (1) shall not 

24 


apply in the following cases: 

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1 


(A) The purpose of the exchange is for re


2 


search or public health activities (as described 

3 


in sections 164.501, 164.512(i), and 164.512(b) 

4 


of title 45, Code of Federal Regulations) and 

5 


the price charged reflects the costs of prepara6 
tion and transmittal of the data for such pur7 
pose. 
8 
(B) The purpose of the exchange is for the 
9 
treatment of the individual and the price 
10 
charges reflects not more than the costs of 
11 
preparation and transmittal of the data for 
12 
such purpose. 
13 
(C) The purpose of the exchange is the 
14 
health care operation specifically described in 
15 
subparagraph (iv) of paragraph (6) of the defi16 
nition of health care operations in section 
17 
164.501 of title 45, Code of Federal Regula18 
tions. 
19 
(D) The purpose of the exchange is for re20 
muneration that is provided by a covered entity 
21 


to a business associate for activities involving 

22 


the exchange of protected health information 

23 


that the business associate undertakes on behalf 

24 


of and at the specific request of the covered en


25 


tity pursuant to a business associate agreement. 

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1 


(E) The purpose of the exchange is to pro


2 


vide an individual with a copy of the individ


3 


ual’s protected health information pursuant to 

4 


section 164.524 of title 45, Code of Federal 

5 


Regulations. 
6 
(F) The purpose of the exchange is other7 
wise determined by the Secretary in regulations 
8 
to be similarly necessary and appropriate as the 
9 
exceptions provided in subparagraphs (A) 
10 
through (E). 
11 
(3) REGULATIONS.—The Secretary shall pro12 
mulgate regulations to carry out paragraph (this 
13 
subsection, including exceptions described in para14 
graph (2), not later than 18 months after the date 
15 
of the enactment of this title. 
16 
(4) EFFECTIVE DATE.—Paragraph (1) shall 
17 
apply to exchanges occurring on or after the date 
18 
that is 6 months after the date of the promulgation 
19 
of final regulations implementing this subsection. 
20 
(f) ACCESS TO CERTAIN INFORMATION IN ELEC21 
TRONIC FORMAT.—In applying section 164.524 of title 
22 
45, Code of Federal Regulations, in the case that a cov23 
ered entity uses or maintains an electronic health record 
24 
with respect to protected health information of an indi25 
vidual— 

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556 

1 


(1) the individual shall have a right to obtain 

2 


from such covered entity a copy of such information 

3 


in an electronic format; and 

4 


(2) notwithstanding paragraph (c)(4) of such 

5 


section, any fee that the covered entity may impose 
6 
for providing such individual with a copy of such in7 
formation (or a summary or explanation of such in8 
formation) if such copy (or summary or explanation) 
9 
is in an electronic form shall not be greater than the 
10 
entity’s labor costs in responding to the request for 
11 
the copy (or summary or explanation). 
12 
(g) CLARIFICATION.—Nothing in this subtitle shall 
13 
constitute a waiver of any privilege otherwise applicable 
14 
to an individual with respect to the protected health infor15 
mation of such individual. 
16 
SEC. 4406. CONDITIONS ON CERTAIN CONTACTS AS PART 
17 
OF HEALTH CARE OPERATIONS. 
18 
(a) MARKETING.— 
19 
(1) IN GENERAL.—A communication by a cov20 
ered entity or business associate that is about a 
21 


product or service and that encourages recipients of 

22 


the communication to purchase or use the product 

23 


or service shall not be considered a health care oper


24 


ation for purposes of subpart E of part 164 of title 

25 


45, Code of Federal Regulations, unless the commu


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1 


nication is made as described in subparagraph (i), 

2 


(ii), or (iii) of paragraph (1) of the definition of 

3 


marketing in section 164.501 of such title. 
4 
(2) PAYMENT FOR CERTAIN COMMUNICA5 


TIONS.—A covered entity or business associate may 
6 
not receive direct or indirect payment in exchange 
7 
for making any communication described in sub8 
paragraph (i), (ii), or (iii) of paragraph (1) of the 
9 
definition of marketing in section 164.501 of title 
10 
45, Code of Federal Regulations, except— 
11 
(A) a business associate of a covered entity 
12 
may receive payment from the covered entity 
13 
for making any such communication on behalf 
14 
of the covered entity that is consistent with the 
15 
written contract (or other written arrangement) 
16 
described in section 164.502(e)(2) of such title 
17 
between such business associate and covered en18 
tity; or 
19 
(B) a covered entity may receive payment 
20 
in exchange for making any such communica21 


tion if the entity obtains from the recipient of 

22 


the communication, in accordance with section 

23 


164.508 of title 45, Code of Federal Regula


24 


tions, a valid authorization (as described in 

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558 

1 


paragraph (b) of such section) with respect to 

2 


such communication. 

3 


(b) FUNDRAISING.—Fundraising for the benefit of a 
4 
covered entity shall not be considered a health care oper5 
ation for purposes of section 164.501 of title 45, Code of 
6 
Federal Regulations. 
7 
(c) EFFECTIVE DATE.—This section shall apply to 
8 
contracting occurring on or after the effective date speci9 
fied under section 4423. 
10 
SEC. 4407. TEMPORARY BREACH NOTIFICATION REQUIRE11 
MENT FOR VENDORS OF PERSONAL HEALTH 
12 
RECORDS AND OTHER NON-HIPAA COVERED 
13 
ENTITIES. 
14 
(a) IN GENERAL.—In accordance with subsection (c), 
15 
each vendor of personal health records, following the dis16 
covery of a breach of security of unsecured PHR identifi17 
able health information that is in a personal health record 
18 
maintained or offered by such vendor, and each entity de19 
scribed in clause (ii) or (iii) of section 4424(b)(1)(A), fol20 
lowing the discovery of a breach of security of such infor21 
mation that is obtained through a product or service pro22 
vided by such entity, shall— 
23 


(1) notify each individual who is a citizen or 

24 


resident of the United States whose unsecured PHR 

25 


identifiable health information was acquired by an 

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1 


unauthorized person as a result of such a breach of 

2 


security; and 

3 


(2) notify the Federal Trade Commission. 

4 


(b) NOTIFICATION BY THIRD PARTY SERVICE PRO5 
VIDERS.—A third party service provider that provides 
6 
services to a vendor of personal health records or to an 
7 
entity described in clause (ii) or (iii) of section 
8 
4424(b)(1)(A) in connection with the offering or mainte9 
nance of a personal health record or a related product or 
10 
service and that accesses, maintains, retains, modifies, 
11 
records, stores, destroys, or otherwise holds, uses, or dis12 
closes unsecured PHR identifiable health information in 
13 
such a record as a result of such services shall, following 
14 
the discovery of a breach of security of such information, 
15 
notify such vendor or entity, respectively, of such breach. 
16 
Such notice shall include the identification of each indi17 
vidual whose unsecured PHR identifiable health informa18 
tion has been, or is reasonably believed to have been, 
19 
accessed, acquired, or disclosed during such breach. 
20 
(c) APPLICATION OF REQUIREMENTS FOR TIMELI21 
NESS, METHOD, AND CONTENT OF NOTIFICATIONS.— 
22 
Subsections (c), (d), (e), and (f) of section 402 shall apply 
23 
to a notification required under subsection (a) and a ven24 
dor of personal health records, an entity described in sub25 
section (a) and a third party service provider described 

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560 
1 
in subsection (b), with respect to a breach of security 
2 
under subsection (a) of unsecured PHR identifiable health 
3 
information in such records maintained or offered by such 
4 
vendor, in a manner specified by the Federal Trade Com5 
mission. 
6 
(d) NOTIFICATION OF THE SECRETARY.—Upon re7 
ceipt of a notification of a breach of security under sub8 
section (a)(2), the Federal Trade Commission shall notify 
9 
the Secretary of such breach. 
10 
(e) ENFORCEMENT.—A violation of subsection (a) or 
11 
(b) shall be treated as an unfair and deceptive act or prac12 
tice in violation of a regulation under section 18(a)(1)(B) 
13 
of the Federal Trade Commission Act (15 U.S.C. 
14 
57a(a)(1)(B)) regarding unfair or deceptive acts or prac15 
tices. 
16 
(f) DEFINITIONS.—For purposes of this section: 
17 
(1) BREACH OF SECURITY.—The term ‘‘breach 
18 
of security’’ means, with respect to unsecured PHR 
19 
identifiable health information of an individual in a 
20 
personal health record, acquisition of such informa21 


tion without the authorization of the individual. 

22 


(2) PHR IDENTIFIABLE HEALTH INFORMA


23 


TION.—The term ‘‘PHR identifiable health informa


24 


tion’’ means individually identifiable health informa


25 


tion, as defined in section 1171(6) of the Social Se-

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1 


curity Act (42 U.S.C. 1320d(6)), and includes, with 

2 


respect to an individual, information— 

3 


(A) that is provided by or on behalf of the 

4 


individual; and 

5 


(B) that identifies the individual or with 
6 
respect to which there is a reasonable basis to 
7 
believe that the information can be used to 
8 
identify the individual. 
9 
(3) UNSECURED PHR IDENTIFIABLE HEALTH 
10 
INFORMATION.— 
11 
(A) IN GENERAL.—Subject to subpara12 
graph (B), the term ‘‘unsecured PHR identifi13 
able health information’’ means PHR identifi14 
able health information that is not protected 
15 
through the use of a technology or methodology 
16 
specified by the Secretary in the guidance 
17 
issued under section 4402(h)(2). 
18 
(B) EXCEPTION IN CASE TIMELY GUID19 
ANCE NOT ISSUED.—In the case that the Sec20 
retary does not issue guidance under section 
21 


4402(h)(2) by the date specified in such sec


22 


tion, for purposes of this section, the term ‘‘un


23 


secured PHR identifiable health information’’ 

24 


shall mean PHR identifiable health information 

25 


that is not secured by a technology standard 

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1 


that renders protected health information unus


2 


able, unreadable, or indecipherable to unauthor


3 


ized individuals and that is developed or en


4 


dorsed by a standards developing organization 

5 


that is accredited by the American National 
6 
Standards Institute. 
7 
(g) REGULATIONS; EFFECTIVE DATE; SUNSET.— 
8 
(1) REGULATIONS; EFFECTIVE DATE.—To 
9 
carry out this section, the Secretary of Health and 
10 
Human Services shall promulgate interim final regu11 
lations by not later than the date that is 180 days 
12 
after the date of the enactment of this section. The 
13 
provisions of this section shall apply to breaches of 
14 
security that are discovered on or after the date that 
15 
is 30 days after the date of publication of such in16 
terim final regulations. 
17 
(2) SUNSET.—The provisions of this section 
18 
shall not apply to breaches of security occurring on 
19 
or after the earlier of the following the dates: 
20 
(A) The date on which a standard relating 
21 


to requirements for entities that are not covered 

22 


entities that includes requirements relating to 

23 


breach notification has been promulgated by the 

24 


Secretary. 

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1 


(B) The date on which a standard relating 

2 


to requirements for entities that are not covered 

3 


entities that includes requirements relating to 

4 


breach notification has been promulgated by the 

5 


Federal Trade Commission and has taken ef6 
fect. 
7 
SEC. 4408. BUSINESS ASSOCIATE CONTRACTS REQUIRED 
8 
FOR CERTAIN ENTITIES. 
9 
Each organization, with respect to a covered entity, 
10 
that provides data transmission of protected health infor11 
mation to such entity (or its business associate) and that 
12 
requires access on a routine basis to such protected health 
13 
information, such as a Health Information Exchange Or14 
ganization, Regional Health Information Organization, E15 
prescribing Gateway, or each vendor that contracts with 
16 
a covered entity to allow that covered entity to offer a per17 
sonal health record to patients as part of its electronic 
18 
health record, is required to enter into a written contract 
19 
(or other written arrangement) described in section 
20 
164.502(e)(2) of title 45, Code of Federal Regulations and 
21 
a written contract (or other arrangement) described in 
22 
section 164.308(b) of such title, with such entity and shall 
23 
be treated as a business associate of the covered entity 
24 
for purposes of the provisions of this subtitle and subparts 
25 
C and E of part 164 of title 45, Code of Federal Regula-

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564 
1 
tions, as such provisions are in effect as of the date of 
2 
enactment of this title. 
3 
SEC. 4409. CLARIFICATION OF APPLICATION OF WRONGFUL 
4 


DISCLOSURES CRIMINAL PENALTIES. 

5 


Section 1177(a) of the Social Security Act (42 U.S.C. 
6 
1320d–6(a)) is amended by adding at the end the fol7 
lowing new sentence: ‘‘For purposes of the previous sen8 
tence, a person (including an employee or other individual) 
9 
shall be considered to have obtained or disclosed individ10 
ually identifiable health information in violation of this 
11 
part if the information is maintained by a covered entity 
12 
(as defined in the HIPAA privacy regulation described in 
13 
section 1180(b)(3)) and the individual obtained or dis14 
closed such information without authorization.’’. 
15 
SEC. 4410. IMPROVED ENFORCEMENT. 
16 
(a) IN GENERAL.—Section 1176 of the Social Secu17 
rity Act (42 U.S.C. 1320d-5) is amended— 
18 
(1) in subsection (b)(1), by striking ‘‘the act 
19 
constitutes an offense punishable under section 
20 
1177’’ and inserting ‘‘a penalty has been imposed 
21 


under section 1177 with respect to such act’’; and 

22 


(2) by adding at the end the following new sub23 
section: 
24 


‘‘(c) NONCOMPLIANCE DUE TO WILLFUL NE25 
GLECT.— 

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1 


‘‘(1) IN GENERAL.—A violation of a provision 

2 


of this part due to willful neglect is a violation for 

3 


which the Secretary is required to impose a penalty 

4 


under subsection (a)(1). 

5 


‘‘(2) REQUIRED INVESTIGATION.—For purposes 
6 
of paragraph (1), the Secretary shall formally inves7 
tigate any complaint of a violation of a provision of 
8 
this part if a preliminary investigation of the facts 
9 
of the complaint indicate such a possible violation 
10 
due to willful neglect.’’. 
11 
(b) EFFECTIVE DATE; REGULATIONS.— 
12 
(1) The amendments made by subsection (a) 
13 
shall apply to penalties imposed on or after the date 
14 
that is 24 months after the date of the enactment 
15 
of this title. 
16 
(2) Not later than 18 months after the date of 
17 
the enactment of this title, the Secretary of Health 
18 
and Human Services shall promulgate regulations to 
19 
implement such amendments. 
20 
(c) DISTRIBUTION OF CERTAIN CIVIL MONETARY 
21 
PENALTIES COLLECTED.— 
22 


(1) IN GENERAL.—Subject to the regulation 

23 


promulgated pursuant to paragraph (3), any civil 

24 


monetary penalty or monetary settlement collected 

25 


with respect to an offense punishable under this sub-

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566 

1 


title or section 1176 of the Social Security Act (42 

2 


U.S.C. 1320d-5) insofar as such section relates to 

3 


privacy or security shall be transferred to the Office 

4 


of Civil Rights of the Department of Health and 

5 


Human Services to be used for purposes of enforcing 
6 
the provisions of this subtitle and subparts C and E 
7 
of part 164 of title 45, Code of Federal Regulations, 
8 
as such provisions are in effect as of the date of en9 
actment of this Act. 
10 
(2) GAO REPORT.—Not later than 18 months 
11 
after the date of the enactment of this title, the 
12 
Comptroller General shall submit to the Secretary a 
13 
report including recommendations for a methodology 
14 
under which an individual who is harmed by an act 
15 
that constitutes an offense referred to in paragraph 
16 
(1) may receive a percentage of any civil monetary 
17 
penalty or monetary settlement collected with re18 
spect to such offense. 
19 
(3) ESTABLISHMENT OF METHODOLOGY TO 
20 
DISTRIBUTE PERCENTAGE OF CMPS COLLECTED TO 
21 


HARMED INDIVIDUALS.—Not later than 3 years 

22 


after the date of the enactment of this title, the Sec


23 


retary shall establish by regulation and based on the 

24 


recommendations submitted under paragraph (2), a 

25 


methodology under which an individual who is 

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567 

1 


harmed by an act that constitutes an offense re


2 


ferred to in paragraph (1) may receive a percentage 

3 


of any civil monetary penalty or monetary settlement 

4 


collected with respect to such offense. 
5 
(4) APPLICATION OF METHODOLOGY.—The 
6 
methodology under paragraph (3) shall be applied 
7 
with respect to civil monetary penalties or monetary 
8 
settlements imposed on or after the effective date of 
9 
the regulation. 
10 
(d) TIERED INCREASE IN AMOUNT OF CIVIL MONE11 
TARY PENALTIES.— 
12 
(1) IN GENERAL.—Section 1176(a)(1) of the 
13 
Social Security Act (42 U.S.C. 1320d-5(a)(1)) is 
14 
amended by striking ‘‘who violates a provision of 
15 
this part a penalty of not more than’’ and all that 
16 
follows and inserting the following: ‘‘who violates a 
17 
provision of this part— 
18 
‘‘(A) in the case of a violation of such pro19 
vision in which it is established that the person 
20 
did not know (and by exercising reasonable dili21 


gence would not have known) that such person 

22 


violated such provision, a penalty for each such 

23 


violation of an amount that is at least the 

24 


amount described in paragraph (3)(A) but not 

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568 

1 


to exceed the amount described in paragraph 

2 


(3)(D); 

3 


‘‘(B) in the case of a violation of such pro


4 


vision in which it is established that the viola


5 


tion was due to reasonable cause and not to 
6 
willful neglect, a penalty for each such violation 
7 
of an amount that is at least the amount de8 
scribed in paragraph (3)(B) but not to exceed 
9 
the amount described in paragraph (3)(D); and 
10 
‘‘(C) in the case of a violation of such pro11 
vision in which it is established that the viola12 
tion was due to willful neglect— 
13 
‘‘(i) if the violation is corrected as de14 
scribed in subsection (b)(3)(A), a penalty 
15 
in an amount that is at least the amount 
16 
described in paragraph (3)(C) but not to 
17 
exceed the amount described in paragraph 
18 
(3)(D); and 
19 
‘‘(ii) if the violation is not corrected 
20 
as described in such subsection, a penalty 
21 


in an amount that is at least the amount 

22 


described in paragraph (3)(D). 

23 


In determining the amount of a penalty under 

24 


this section for a violation, the Secretary shall 

25 


base such determination on the nature and ex-

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569 

1 


tent of the violation and the nature and extent 

2 


of the harm resulting from such violation.’’. 

3 


(2) TIERS OF PENALTIES DESCRIBED.—Section 

4 


1176(a) of such Act (42 U.S.C. 1320d-5(a)) is fur


5 


ther amended by adding at the end the following 
6 
new paragraph: 
7 
‘‘(3) TIERS OF PENALTIES DESCRIBED.—For 
8 
purposes of paragraph (1), with respect to a viola9 
tion by a person of a provision of this part— 
10 
‘‘(A) the amount described in this subpara11 
graph is $100 for each such violation, except 
12 
that the total amount imposed on the person 
13 
for all such violations of an identical require14 
ment or prohibition during a calendar year may 
15 
not exceed $25,000; 
16 
‘‘(B) the amount described in this subpara17 
graph is $1,000 for each such violation, except 
18 
that the total amount imposed on the person 
19 
for all such violations of an identical require20 
ment or prohibition during a calendar year may 
21 


not exceed $100,000; 

22 


‘‘(C) the amount described in this subpara


23 


graph is $10,000 for each such violation, except 

24 


that the total amount imposed on the person 

25 


for all such violations of an identical require-

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570 

1 


ment or prohibition during a calendar year may 

2 


not exceed $250,000; and 

3 


‘‘(D) the amount described in this sub


4 


paragraph is $50,000 for each such violation, 

5 


except that the total amount imposed on the 
6 
person for all such violations of an identical re7 
quirement or prohibition during a calendar year 
8 
may not exceed $1,500,000.’’. 
9 
(3) CONFORMING AMENDMENTS.—Section 
10 
1176(b) of such Act (42 U.S.C. 1320d-5(b)) is 
11 
amended— 
12 
(A) by striking paragraph (2) and redesig13 
nating paragraphs (3) and (4) as paragraphs 
14 
(2) and (3), respectively; and 
15 
(B) in paragraph (2), as so redesignated— 
16 
(i) in subparagraph (A), by striking 
17 
‘‘in subparagraph (B), a penalty may not 
18 
be imposed under subsection (a) if’’ and all 
19 
that follows through ‘‘the failure to comply 
20 
is corrected’’ and inserting ‘‘in subpara21 


graph (B) or subsection (a)(1)(C), a pen


22 


alty may not be imposed under subsection 

23 


(a) if the failure to comply is corrected’’; 
24 
and 

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571 

1 


(ii) in subparagraph (B), by striking 

2 


‘‘(A)(ii)’’ and inserting ‘‘(A)’’ each place it 

3 


appears. 

4 


(4) EFFECTIVE DATE.—The amendments made 

5 


by this subsection shall apply to violations occurring 
6 
after the date of the enactment of this title. 
7 
(e) ENFORCEMENT THROUGH STATE ATTORNEYS 
8 
GENERAL.— 
9 
(1) IN GENERAL.—Section 1176 of the Social 
10 
Security Act (42 U.S.C. 1320d–5) is amended by 
11 
adding at the end the following new subsection: 
12 
‘‘(c) ENFORCEMENT BY STATE ATTORNEYS GEN13 
ERAL.— 
14 
‘‘(1) CIVIL ACTION.—Except as provided in 
15 
subsection (b), in any case in which the attorney 
16 
general of a State has reason to believe that an in17 
terest of one or more of the residents of that State 
18 
has been or is threatened or adversely affected by 
19 
any person who violates a provision of this part, the 
20 
attorney general of the State, as parens patriae, may 
21 


bring a civil action on behalf of such residents of the 

22 


State in a district court of the United States of ap


23 


propriate jurisdiction— 

24 


‘‘(A) to enjoin further such violation by the 

25 


defendant; or 

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572 

1 


‘‘(B) to obtain damages on behalf of such 

2 


residents of the State, in an amount equal to 

3 


the amount determined under paragraph (2). 

4 


‘‘(2) STATUTORY DAMAGES.— 

5 


‘‘(A) IN GENERAL.—For purposes of para6 
graph (1)(B), the amount determined under 
7 
this paragraph is the amount calculated by mul8 
tiplying the number of violations by up to $100. 
9 
For purposes of the preceding sentence, in the 
10 
case of a continuing violation, the number of 
11 
violations shall be determined consistent with 
12 
the HIPAA privacy regulations (as defined in 
13 
section 1180(b)(3)) for violations of subsection 
14 
(a). 
15 
‘‘(B) LIMITATION.—The total amount of 
16 
damages imposed on the person for all viola17 
tions of an identical requirement or prohibition 
18 
during a calendar year may not exceed $25,000. 
19 
‘‘(C) REDUCTION OF DAMAGES.—In as20 
sessing damages under subparagraph (A), the 
21 


court may consider the factors the Secretary 

22 


may consider in determining the amount of a 

23 


civil money penalty under subsection (a) under 

24 


the HIPAA privacy regulations. 

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573 

1 


‘‘(3) ATTORNEY FEES.—In the case of any suc


2 


cessful action under paragraph (1), the court, in its 

3 


discretion, may award the costs of the action and 

4 


reasonable attorney fees to the State. 

5 


‘‘(4) NOTICE TO SECRETARY.—The State shall 
6 
serve prior written notice of any action under para7 
graph (1) upon the Secretary and provide the Sec8 
retary with a copy of its complaint, except in any 
9 
case in which such prior notice is not feasible, in 
10 
which case the State shall serve such notice imme11 
diately upon instituting such action. The Secretary 
12 
shall have the right— 
13 
‘‘(A) to intervene in the action; 
14 
‘‘(B) upon so intervening, to be heard on 
15 
all matters arising therein; and 
16 
‘‘(C) to file petitions for appeal. 
17 
‘‘(5) CONSTRUCTION.—For purposes of bring18 
ing any civil action under paragraph (1), nothing in 
19 
this section shall be construed to prevent an attor20 
ney general of a State from exercising the powers 
21 


conferred on the attorney general by the laws of that 
22 
State. 
23 


‘‘(6) VENUE; SERVICE OF PROCESS.— 

24 


‘‘(A) VENUE.—Any action brought under 

25 


paragraph (1) may be brought in the district 

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574 

1 


court of the United States that meets applicable 

2 


requirements relating to venue under section 

3 


1391 of title 28, United States Code. 

4 


‘‘(B) SERVICE OF PROCESS.—In an action 

5 


brought under paragraph (1), process may be 
6 
served in any district in which the defendant— 
7 
‘‘(i) is an inhabitant; or 
8 
‘‘(ii) maintains a physical place of 
9 
business. 
10 
‘‘(7) LIMITATION ON STATE ACTION WHILE 
11 
FEDERAL ACTION IS PENDING.—If the Secretary has 
12 
instituted an action against a person under sub13 
section (a) with respect to a specific violation of this 
14 
part, no State attorney general may bring an action 
15 
under this subsection against the person with re16 
spect to such violation during the pendency of that 
17 
action. 
18 
‘‘(8) APPLICATION OF CMP STATUTE OF LIMI19 
TATION.—A civil action may not be instituted with 
20 
respect to a violation of this part unless an action 
21 


to impose a civil money penalty may be instituted 

22 


under subsection (a) with respect to such violation 

23 


consistent with the second sentence of section 

24 


1128A(c)(1).’’. 

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575 


1 
(2) CONFORMING AMENDMENTS.—Subsection 
2 


(b) of such section, as amended by subsection (d)(3), 

3 


is amended— 

4 


(A) in paragraph (1), by striking ‘‘A pen


5 


alty may not be imposed under subsection (a)’’ 
6 
and inserting ‘‘No penalty may be imposed 
7 
under subsection (a) and no damages obtained 
8 
under subsection (c)’’; 
9 
(B) in paragraph (2)(A)— 
10 
(i) in the matter before clause (i), by 
11 
striking ‘‘a penalty may not be imposed 
12 
under subsection (a)’’ and inserting ‘‘no 
13 
penalty may be imposed under subsection 
14 
(a) and no damages obtained under sub15 
section (c)’’; and 
16 
(ii) in clause (ii), by inserting ‘‘or 
17 
damages’’ after ‘‘the penalty’’; 
18 
(C) in paragraph (2)(B)(i), by striking 
19 
‘‘The period’’ and inserting ‘‘With respect to 
20 
the imposition of a penalty by the Secretary 
21 


under subsection (a), the period’’; and 

22 


(D) in paragraph (3), by inserting ‘‘and 

23 


any damages under subsection (c)’’ after ‘‘any 

24 


penalty under subsection (a)’’. 

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576 

1 


(3) EFFECTIVE DATE.—The amendments made 

2 


by this subsection shall apply to violations occurring 

3 


after the date of the enactment of this Act. 

4 


(f) ALLOWING CONTINUED USE OF CORRECTIVE AC5 
TION.—Such section is further amended by adding at the 
6 
end the following new subsection: 
7 
‘‘(d) ALLOWING CONTINUED USE OF CORRECTIVE 
8 
ACTION.—Nothing in this section shall be construed as 
9 
preventing the Office of Civil Rights of the Department 
10 
of Health and Human Services from continuing, in its dis11 
cretion, to use corrective action without a penalty in cases 
12 
where the person did not know (and by exercising reason13 
able diligence would not have known) of the violation in14 
volved.’’. 
15 
SEC. 4411. AUDITS. 
16 
The Secretary shall provide for periodic audits to en17 
sure that covered entities and business associates that are 
18 
subject to the requirements of this subtitle and subparts 
19 
C and E of part 164 of title 45, Code of Federal Regula20 
tions, as such provisions are in effect as of the date of 
21 
enactment of this Act, comply with such requirements. 

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577 

1 
SEC. 4412. SPECIAL RULE FOR INFORMATION TO REDUCE 
2 


MEDICATION ERRORS AND IMPROVE PA


3 


TIENT SAFETY. 

4 


Nothing under this subtitle shall prevent a phar5 
macist from communicating with patients in order to re6 
duce medication errors and improve patient safety pro7 
vided there is no remuneration other than for the treat8 
ment of the individual and payment for such treatment 
9 
of the individual as defined in 45 CFR 164.501. The 
10 
Secretary may by regulation authorize a pharmacy to re11 
ceive remuneration that does not exceed their reasonable 
12 
out-of-pocket costs for such communications if the Sec13 
retary determines that allowing this remuneration im14 
proves patient care and protects protected health informa15 
tion. 
16 
PART II—RELATIONSHIP TO OTHER LAWS; REGU17 
LATORY REFERENCES; EFFECTIVE DATE; RE18 
PORTS 
19 
SEC. 4421. RELATIONSHIP TO OTHER LAWS. 
20 
(a) APPLICATION OF HIPAA STATE PREEMPTION.— 
21 
Section 1178 of the Social Security Act (42 U.S.C. 
22 
1320d–7) shall apply to a provision or requirement under 
23 
this subtitle in the same manner that such section applies 
24 
to a provision or requirement under part C of title XI of 
25 
such Act or a standard or implementation specification 

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578 
1 
adopted or established under sections 1172 through 1174 
2 
of such Act. 
3 
(b) HEALTH INSURANCE PORTABILITY AND AC4 
COUNTABILITY ACT.—The standards governing the pri5 
vacy and security of individually identifiable health infor6 
mation promulgated by the Secretary under sections 
7 
262(a) and 264 of the Health Insurance Portability and 
8 
Accountability Act of 1996 shall remain in effect to the 
9 
extent that they are consistent with this subtitle. The Sec10 
retary shall by rule amend such Federal regulations as re11 
quired to make such regulations consistent with this sub12 
title. 
13 
SEC. 4422. REGULATORY REFERENCES. 
14 
Each reference in this subtitle to a provision of the 
15 
Code of Federal Regulations refers to such provision as 
16 
in effect on the date of the enactment of this title (or to 
17 
the most recent update of such provision). 
18 
SEC. 4423. EFFECTIVE DATE. 
19 
Except as otherwise specifically provided, the provi20 
sions of part I shall take effect on the date that is 12 
21 
months after the date of the enactment of this title. 
22 
SEC. 4424. STUDIES, REPORTS, GUIDANCE. 
23 


(a) REPORT ON COMPLIANCE.— 

24 


(1) IN GENERAL.—For the first year beginning 

25 


after the date of the enactment of this Act and an-

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579 

1 


nually thereafter, the Secretary shall prepare and 

2 


submit to the Committee on Health, Education, 

3 


Labor, and Pensions of the Senate and the Com


4 


mittee on Ways and Means and the Committee on 

5 


Energy and Commerce of the House of Representa6 
tives a report concerning complaints of alleged viola7 
tions of law, including the provisions of this subtitle 
8 
as well as the provisions of subparts C and E of part 
9 
164 of title 45, Code of Federal Regulations, (as 
10 
such provisions are in effect as of the date of enact11 
ment of this Act) relating to privacy and security of 
12 
health information that are received by the Secretary 
13 
during the year for which the report is being pre14 
pared. Each such report shall include, with respect 
15 
to such complaints received during the year— 
16 
(A) the number of such complaints; 
17 
(B) the number of such complaints re18 
solved informally, a summary of the types of 
19 
such complaints so resolved, and the number of 
20 
covered entities that received technical assist21 


ance from the Secretary during such year in 

22 


order to achieve compliance with such provi


23 


sions and the types of such technical assistance 
24 
provided; 

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580 

1 


(C) the number of such complaints that 

2 


have resulted in the imposition of civil monetary 

3 


penalties or have been resolved through mone


4 


tary settlements, including the nature of the 

5 


complaints involved and the amount paid in 
6 
each penalty or settlement; 
7 
(D) the number of compliance reviews con8 
ducted and the outcome of each such review; 
9 
(E) the number of subpoenas or inquiries 
10 
issued; 
11 
(F) the Secretary’s plan for improving 
12 
compliance with and enforcement of such provi13 
sions for the following year; and 
14 
(G) the number of audits performed and a 
15 
summary of audit findings pursuant to section 
16 
4411. 
17 
(2) AVAILABILITY TO PUBLIC.—Each report 
18 
under paragraph (1) shall be made available to the 
19 
public on the Internet website of the Department of 
20 
Health and Human Services. 
21 


(b) STUDY AND REPORT ON APPLICATION OF PRI22 
VACY AND SECURITY REQUIREMENTS TO NON-HIPAA 
23 
COVERED ENTITIES.— 
24 


(1) STUDY.—Not later than one year after the 

25 


date of the enactment of this title, the Secretary, in 

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581 

1 


consultation with the Federal Trade Commission, 

2 


shall conduct a study, and submit a report under 

3 


paragraph (2), on privacy and security requirements 

4 


for entities that are not covered entities or business 

5 


associates as of the date of the enactment of this 
6 
title, including— 
7 
(A) requirements relating to security, pri8 
vacy, and notification in the case of a breach of 
9 
security or privacy (including the applicability 
10 
of an exemption to notification in the case of 
11 
individually identifiable health information that 
12 
has been rendered unusable, unreadable, or in13 
decipherable through technologies or methodolo14 
gies recognized by appropriate professional or15 
ganization or standard setting bodies to provide 
16 
effective security for the information) that 
17 
should be applied to— 
18 
(i) vendors of personal health records; 
19 
(ii) entities that offer products or 
20 
services through the website of a vendor of 
21 


personal health records; 

22 


(iii) entities that are not covered enti


23 


ties and that offer products or services 

24 


through the websites of covered entities 

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582 


1 
that offer individuals personal health 
2 


records; 

3 


(iv) entities that are not covered enti


4 


ties and that access information in a per


5 


sonal health record or send information to 
6 
a personal health record; and 
7 
(v) third party service providers used 
8 
by a vendor or entity described in clause 
9 
(i), (ii), (iii), or (iv) to assist in providing 
10 
personal health record products or services; 
11 
(B) a determination of which Federal gov12 
ernment agency is best equipped to enforce 
13 
such requirements recommended to be applied 
14 
to such vendors, entities, and service providers 
15 
under subparagraph (A); and 
16 
(C) a timeframe for implementing regula17 
tions based on such findings. 
18 
(2) REPORT.—The Secretary shall submit to 
19 
the Committee on Finance, the Committee on 
20 
Health, Education, Labor, and Pensions, and the 
21 


Committee on Commerce of the Senate and the 

22 


Committee on Ways and Means and the Committee 

23 


on Energy and Commerce of the House of Rep


24 


resentatives a report on the findings of the study 

25 


under paragraph (1) and shall include in such report 

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583 

1 


recommendations on the privacy and security re


2 


quirements described in such paragraph. 

3 


(c) GUIDANCE ON IMPLEMENTATION SPECIFICATION 
4 
TO DE-IDENTIFY PROTECTED HEALTH INFORMATION.— 
5 
Not later than 12 months after the date of the enactment 
6 
of this title, the Secretary shall, in consultation with stake7 
holders, issue guidance on how best to implement the re8 
quirements for the de-identification of protected health in9 
formation under section 164.514(b) of title 45, Code of 
10 
Federal Regulations. 
11 
(d) GAO REPORT ON TREATMENT DISCLOSURES.— 
12 
Not later than one year after the date of the enactment 
13 
of this title, the Comptroller General of the United States 
14 
shall submit to the Committee on Health, Education, 
15 
Labor, and Pensions of the Senate and the Committee on 
16 
Ways and Means and the Committee on Energy and Com17 
merce of the House of Representatives a report on the 
18 
best practices related to the disclosure among health care 
19 
providers of protected health information of an individual 
20 
for purposes of treatment of such individual. Such report 
21 
shall include an examination of the best practices imple22 
mented by States and by other entities, such as health 
23 
information exchanges and regional health information or24 
ganizations, an examination of the extent to which such 
25 
best practices are successful with respect to the quality 

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584 
1 
of the resulting health care provided to the individual and 
2 
with respect to the ability of the health care provider to 
3 
manage such best practices, and an examination of the 
4 
use of electronic informed consent for disclosing protected 
5 
health information for treatment, payment, and health 
6 
care operations. 
7 
Subtitle E—Miscellaneous 
8 
Medicare Provisions 
9 
SEC. 4501. MORATORIA ON CERTAIN MEDICARE REGULA10 
TIONS. 
11 
(a) DELAY IN PHASE OUT OF MEDICARE HOSPICE 
12 
BUDGET NEUTRALITY ADJUSTMENT FACTOR DURING 
13 
FISCAL YEAR 2009.—Notwithstanding any other provi14 
sion of law, including the final rule published on August 
15 
8, 2008, 73 Federal Register 46464 et seq., relating to 
16 
Medicare Program; Hospice Wage Index for Fiscal Year 
17 
2009, the Secretary of Health and Human Services shall 
18 
not phase out or eliminate the budget neutrality adjust19 
ment factor in the Medicare hospice wage index before Oc20 
tober 1, 2009, and the Secretary shall recompute and 
21 
apply the final Medicare hospice wage index for fiscal year 
22 
2009 as if there had been no reduction in the budget neu23 
trality adjustment factor. 

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585 

1 


(b) NON-APPLICATION OF PHASED-OUT INDIRECT 
2 
MEDICAL EDUCATION (IME) ADJUSTMENT FACTOR FOR 
3 
FISCAL YEAR 2009.— 
4 


(1) IN GENERAL.—Section 412.322 of title 42, 

5 


Code of Federal Regulations, shall be applied with6 
out regard to paragraph (c) of such section, and the 
7 
Secretary of Health and Human Services shall re8 
compute payments for discharges occurring on or 
9 
after October 1, 2008, as if such paragraph had 
10 
never been in effect. 
11 
(2) NO EFFECT ON SUBSEQUENT YEARS.— 
12 
Nothing in paragraph (1) shall be construed as hav13 
ing any effect on the application of paragraph (d) of 
14 
section 412.322 of title 42, Code of Federal Regula15 
tions. 
16 
(c) FUNDING FOR IMPLEMENTATION.—In addition to 
17 
funds otherwise available, for purposes of implementing 
18 
the provisions of subsections (a) and (b), including costs 
19 
incurred in reprocessing claims in carrying out such provi20 
sions, the Secretary of Health and Human Services shall 
21 
provide for the transfer from the Federal Hospital Insur22 
ance Trust Fund established under section 1817 of the 
23 
Social Security Act (42 U.S.C. 1395i) to the Centers for 
24 
Medicare & Medicaid Services Program Management Ac25 
count of $2,000,000 for fiscal year 2009. 

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586 

1 
SEC. 4502. LONG-TERM CARE HOSPITAL TECHNICAL COR2 


RECTIONS. 

3 


(a) PAYMENT.—Subsection (c) of section 114 of the 
4 
Medicare, Medicaid, and SCHIP Extension Act of 2007 
5 
(Public Law 110–173) is amended— 
6 
(1) in paragraph (1)— 
7 
(A) by amending the heading to read as 
8 
follows: ‘‘DELAY IN APPLICATION OF 25 PER9 
CENT PATIENT THRESHOLD PAYMENT ADJUST10 
MENT’’; 
11 
(B) by striking ‘‘the date of the enactment 
12 
of this Act’’ and inserting ‘‘July 1, 2007,’’; and 
13 
(C) in subparagraph (A), by inserting ‘‘or 
14 
to a long-term care hospital, or satellite facility, 
15 
that as of December 29, 2007, was co-located 
16 
with an entity that is a provider-based, off-cam17 
pus location of a subsection (d) hospital which 
18 
did not provide services payable under section 
19 
1886(d) of the Social Security Act at the off20 
campus location’’ after ‘‘freestanding long-term 
21 


care hospitals’’; and 

22 


(2) in paragraph (2)— 

23 


(A) in subparagraph (B)(ii), by inserting 

24 


‘‘or that is described in section 412.22(h)(3)(i) 

25 


of such title’’ before the period; and 

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587 

1 


(B) in subparagraph (C), by striking ‘‘the 

2 


date of the enactment of this Act’’ and insert


3 


ing ‘‘October 1, 2007 (or July 1, 2007, in the 

4 


case of a satellite facility described in section 

5 


412.22(h)(3)(i) of title 42, Code of Federal 
6 
Regulations)’’. 
7 
(b) MORATORIUM.—Subsection (d)(3)(A) of such sec8 
tion is amended by striking ‘‘if the hospital or facility’’ 
9 
and inserting ‘‘if the hospital or facility obtained a certifi10 
cate of need for an increase in beds that is in a State 
11 
for which such certificate of need is required and that was 
12 
issued on or after April 1, 2005, and before December 
13 
29, 2007, or if the hospital or facility’’. 
14 
(c) EFFECTIVE DATE.—The amendments made by 
15 
this section shall be effective and apply as if included in 
16 
the enactment of the Medicare, Medicaid, and SCHIP Ex17 
tension Act of 2007 (Public Law 110–173). 
18 
TITLE V—MEDICAID 
19 
PROVISIONS 
20 
SEC. 5000. TABLE OF CONTENTS OF TITLE. 
21 


The table of contents of this title is as follows: 

Sec. 5000. Table of contents of title. 
Sec. 5001. Temporary increase of Medicaid FMAP. 
Sec. 5002. Moratoria on certain regulations. 
Sec. 5003. Transitional Medicaid assistance (TMA). 
Sec. 5004. State eligibility option for family planning services. 
Sec. 5005. Protections for Indians under Medicaid and CHIP. 
Sec. 5006. Consultation on Medicaid and CHIP. 
Sec. 5007. Temporary increase in DSH allotments during recession. 


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588 

1 
SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP. 
2 


(a) PERMITTING MAINTENANCE OF FMAP.—Subject 
3 
to subsections (e), (f), and (g), if the FMAP determined 
4 
without regard to this section for a State for— 
5 


(1) fiscal year 2009 is less than the FMAP as 
6 
so determined for fiscal year 2008, the FMAP for 
7 
the State for fiscal year 2008 shall be substituted 
8 
for the State’s FMAP for fiscal year 2009, before 
9 
the application of this section; 
10 
(2) fiscal year 2010 is less than the FMAP as 
11 
so determined for fiscal year 2008 or fiscal year 
12 
2009 (after the application of paragraph (1)), the 
13 
greater of such FMAP for the State for fiscal year 
14 
2008 or fiscal year 2009 shall be substituted for the 
15 
State’s FMAP for fiscal year 2010, before the appli16 
cation of this section; and 
17 
(3) fiscal year 2011 is less than the FMAP as 
18 
so determined for fiscal year 2008, fiscal year 2009 
19 
(after the application of paragraph (1)), or fiscal 
20 
year 2010 (after the application of paragraph (2)), 
21 


the greatest of such FMAP for the State for fiscal 

22 


year 2008, fiscal year 2009, or fiscal year 2010 shall 

23 


be substituted for the State’s FMAP for fiscal year 

24 


2011, before the application of this section, but only 

25 


for the first calendar quarter in fiscal year 2011. 

26 


(b) GENERAL 4.9 PERCENTAGE POINT INCREASE.— 

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589 


1 


(1) IN GENERAL.—Subject to subsections (e), 

2 


(f), and (g) and paragraph (2), for each State for 

3 


calendar quarters during the recession adjustment 

4 


period (as defined in subsection (h)(2)), the FMAP 

5 


(after the application of subsection (a)) shall be in6 
creased (without regard to any limitation otherwise 
7 
specified in section 1905(b) of the Social Security 
8 
Act) by 4.9 percentage points. 
9 
(2) SPECIAL ELECTION FOR TERRITORIES.—In 
10 
the case of a State that is not one of the 50 States 
11 
or the District of Columbia, paragraph (1) shall only 
12 
apply if the State makes a one-time election, in a 
13 
form and manner specified by the Secretary and for 
14 
the entire recession adjustment period, to apply the 
15 
increase in FMAP under paragraph (1) and a 10 
16 
percent increase under subsection (d) instead of ap17 
plying a 20 percent increase under subsection (d). 
18 
(c) ADDITIONAL ADJUSTMENT TO REFLECT IN19 
CREASE IN UNEMPLOYMENT.— 
20 
(1) IN GENERAL.—Subject to subsections (e), 
21 


(f), and (g), in the case of a State that is a high 

22 


unemployment State (as defined in paragraph (2)) 

23 


for a calendar quarter during the recession adjust


24 


ment period, the FMAP (taking into account the ap


25 


plication of subsections (a) and (b)) for such quarter 

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590 

1 


shall be further increased by the high unemployment 

2 


percentage point adjustment specified in paragraph 

3 


(3) for the State for the quarter. 

4 


(2) HIGH UNEMPLOYMENT STATE.— 

5 


(A) IN GENERAL.—In this subsection, sub6 
ject to subparagraph (B), the term ‘‘high unem7 
ployment State’’ means, with respect to a cal8 
endar quarter in the recession adjustment pe9 
riod, a State that is 1 of the 50 States or the 
10 
District of Columbia and for which the State 
11 
unemployment increase percentage (as com12 
puted under paragraph (5)) for the quarter is 
13 
not less than 1.5 percentage points. 
14 
(B) MAINTENANCE OF STATUS.—If a 
15 
State is a high unemployment State for a cal16 
endar quarter, it shall remain a high unemploy17 
ment State for each subsequent calendar quar18 
ter ending before July 1, 2010. 
19 
(3) HIGH UNEMPLOYMENT PERCENTAGE POINT 
20 
ADJUSTMENT.— 
21 


(A) IN GENERAL.—The high unemploy


22 


ment percentage point adjustment specified in 

23 


this paragraph for a high unemployment State 

24 


for a quarter is equal to the product of— 

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591 

1 


(i) the SMAP for such State and 

2 


quarter (determined after the application 

3 


of subsection (a) and before the application 

4 


of subsection (b)); and 

5 


(ii) subject to subparagraph (B), the 
6 
State unemployment reduction factor spec7 
ified in paragraph (4) for the State and 
8 
quarter. 
9 
(B) MAINTENANCE OF ADJUSTMENT 
10 
LEVEL FOR CERTAIN QUARTERS.—In no case 
11 
shall the State unemployment reduction factor 
12 
applied under subparagraph (A)(ii) for a State 
13 
for a quarter (beginning on or after January 1, 
14 
2009, and ending before July 1, 2010) be less 
15 
than the State unemployment reduction factor 
16 
applied to the State for the previous quarter 
17 
(taking into account the application of this sub18 
paragraph). 
19 
(4) STATE UNEMPLOYMENT REDUCTION FAC20 
TOR.—In the case of a high unemployment State for 
21 


which the State unemployment increase percentage 

22 


(as computed under paragraph (5)) with respect to 

23 


a calendar quarter is— 

24 


(A) not less than 1.5, but is less than 2.5, 

25 


percentage points, the State unemployment re-

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592 

1 


duction factor for the State and quarter is 6 

2 


percent; 

3 


(B) not less than 2.5, but is less than 3.5, 

4 


percentage points, the State unemployment re


5 


duction factor for the State and quarter is 12 
6 
percent; or 
7 
(C) not less than 3.5 percentage points, 
8 
the State unemployment reduction factor for 
9 
the State and quarter is 14 percent. 
10 
(5) COMPUTATION OF STATE UNEMPLOYMENT 
11 
INCREASE PERCENTAGE.— 
12 
(A) IN GENERAL.—In this subsection, the 
13 
‘‘State unemployment increase percentage’’ for 
14 
a State for a calendar quarter is equal to the 
15 
number of percentage points (if any) by 
16 
which— 
17 
(i) the average monthly unemployment 
18 
rate for the State for months in the most 
19 
recent previous 3-consecutive-month period 
20 
for which data are available, subject to 
21 


subparagraph (C); exceeds 

22 


(ii) the lowest average monthly unem


23 


ployment rate for the State for any 3-con


24 


secutive-month period preceding the period 

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593 

1 


described in clause (i) and beginning on or 

2 


after January 1, 2006. 

3 


(B) AVERAGE MONTHLY UNEMPLOYMENT 

4 


RATE DEFINED.—In this paragraph, the term 

5 


‘‘average monthly unemployment rate’’ means 
6 
the average of the monthly number unemployed, 
7 
divided by the average of the monthly civilian 
8 
labor force, seasonally adjusted, as determined 
9 
based on the most recent monthly publications 
10 
of the Bureau of Labor Statistics of the De11 
partment of Labor. 
12 
(C) SPECIAL RULE.—With respect to— 
13 
(i) the first 2 calendar quarters of the 
14 
recession adjustment period, the most re15 
cent previous 3-consecutive-month period 
16 
described in subparagraph (A)(i) shall be 
17 
the 3-consecutive-month period beginning 
18 
with October 2008; and 
19 
(ii) the last 2 calendar quarters of the 
20 
recession adjustment period, the most re21 


cent previous 3-consecutive-month period 

22 


described in such subparagraph shall be 

23 


the 3-consecutive-month period beginning 

24 


with December 2009. 

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594 

1 


(d) INCREASE IN CAP ON MEDICAID PAYMENTS TO 
2 
TERRITORIES.—Subject to subsections (f) and (g) , with 
3 
respect to entire fiscal years occurring during the reces4 
sion adjustment period and with respect to fiscal years 
5 
only a portion of which occurs during such period (and 
6 
in proportion to the portion of the fiscal year that occurs 
7 
during such period), the amounts otherwise determined for 
8 
Puerto Rico, the Virgin Islands, Guam, the Northern Mar9 
iana Islands, and American Samoa under subsections (f) 
10 
and (g) of section 1108 of the Social Security Act (42 
11 
U.S.C. 1308) shall each be increased by 20 percent (or, 
12 
in the case of an election under subsection (b)(2), 10 per13 
cent). 
14 
(e) SCOPE OF APPLICATION.—The increases in the 
15 
FMAP for a State under this section shall apply for pur16 
poses of title XIX of the Social Security Act and— 
17 
(1) the increases applied under subsections (a), 
18 
(b), and (c) shall not apply with respect— 
19 
(A) to payments under parts A, B, and D 
20 
of title IV or title XXI of such Act (42 U.S.C. 
21 


601 et seq. and 1397aa et seq.); 

22 


(B) to payments under title XIX of such 

23 


Act that are based on the enhanced FMAP de


24 


scribed in section 2105(b) of such Act (42 

25 


U.S.C. 1397ee(b)); and 

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595 

1 


(C) to payments for disproportionate share 

2 


hospital (DSH) payment adjustments under 

3 


section 1923 of such Act (42 U.S.C. 1396r–4); 
4 
and 
5 


(2) the increase provided under subsection (c) 
6 
shall not apply with respect to payments under part 
7 
E of title IV of such Act. 
8 
(f) STATE INELIGIBILITY AND LIMITATION.— 
9 
(1) IN GENERAL.—Subject to paragraphs (2) 
10 
and (3), a State is not eligible for an increase in its 
11 
FMAP under subsection (a), (b), or (c), or an in12 
crease in a cap amount under subsection (d), if eligi13 
bility standards, methodologies, or procedures under 
14 
its State plan under title XIX of the Social Security 
15 
Act (including any waiver under such title or under 
16 
section 1115 of such Act (42 U.S.C. 1315)) are 
17 
more restrictive than the eligibility standards, meth18 
odologies, or procedures, respectively, under such 
19 
plan (or waiver) as in effect on July 1, 2008. 
20 
(2) STATE REINSTATEMENT OF ELIGIBILITY 
21 


PERMITTED.—Subject to paragraph (3), a State that 

22 


has restricted eligibility standards, methodologies, or 

23 


procedures under its State plan under title XIX of 

24 


the Social Security Act (including any waiver under 

25 


such title or under section 1115 of such Act (42 

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596 

1 


U.S.C. 1315)) after July 1, 2008, is no longer ineli


2 


gible under paragraph (1) beginning with the first 

3 


calendar quarter in which the State has reinstated 

4 


eligibility standards, methodologies, or procedures 

5 


that are no more restrictive than the eligibility 
6 
standards, methodologies, or procedures, respec7 
tively, under such plan (or waiver) as in effect on 
8 
July 1, 2008. 
9 
(3) SPECIAL RULES.—A State shall not be in10 
eligible under paragraph (1)— 
11 
(A) for the calendar quarters before July 
12 
1, 2009, on the basis of a restriction that was 
13 
applied after July 1, 2008, and before the date 
14 
of the enactment of this Act, if the State, prior 
15 
to July 1, 2009, reinstated eligibility standards, 
16 
methodologies, or procedures that are no more 
17 
restrictive than the eligibility standards, meth18 
odologies, or procedures, respectively, under 
19 
such plan (or waiver) as in effect on July 1, 
20 
2008; or 
21 


(B) on the basis of a restriction that was 

22 


effective under State law as of July 1, 2008, 

23 


and would have been in effect as of such date, 

24 


but for a delay (of not longer than 1 calendar 

25 


quarter) in the approval of a request for a new 

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597 

1 


waiver under section 1115 of such Act with re


2 


spect to such restriction. 

3 


(4) STATE’S APPLICATION TOWARD RAINY DAY 

4 


FUND.—A State is not eligible for an increase in its 

5 


FMAP under subsection (b) or (c), or an increase in 
6 
a cap amount under subsection (d), if any amounts 
7 
attributable (directly or indirectly) to such increase 
8 
are deposited or credited into any reserve or rainy 
9 
day fund of the State. 
10 
(5) RULE OF CONSTRUCTION.—Nothing in 
11 
paragraph (1) or (2) shall be construed as affecting 
12 
a State’s flexibility with respect to benefits offered 
13 
under the State Medicaid program under title XIX 
14 
of the Social Security Act (42 U.S.C. 1396 et seq.) 
15 
(including any waiver under such title or under sec16 
tion 1115 of such Act (42 U.S.C. 1315)). 
17 
(6) NO WAIVER AUTHORITY.—The Secretary 
18 
may not waive the application of this subsection or 
19 
subsection (g) under section 1115 of the Social Se20 
curity Act or otherwise. 
21 
(g) REQUIREMENT FOR CERTAIN STATES.—In the 
22 
case of a State that requires political subdivisions within 
23 
the State to contribute toward the non-Federal share of 
24 
expenditures under the State Medicaid plan required 
25 
under section 1902(a)(2) of the Social Security Act (42 

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598 
1 
U.S.C. 1396a(a)(2)), the State is not eligible for an in2 
crease in its FMAP under subsection (a), (b), or (c), or 
3 
an increase in a cap amount under subsection (d), if it 
4 
requires that such political subdivisions pay a greater per5 
centage of the non-Federal share of such expenditures for 
6 
quarters during the recession adjustment period, than the 
7 
percentage that would have been required by the State 
8 
under such plan on September 30, 2008, prior to applica9 
tion of this section. 
10 
(h) DEFINITIONS.—In this section, except as other11 
wise provided: 
12 
(1) FMAP.—The term ‘‘FMAP’’ means the 
13 
Federal medical assistance percentage, as defined in 
14 
section 1905(b) of the Social Security Act (42 
15 
U.S.C. 1396d(b)), as determined without regard to 
16 
this section except as otherwise specified. 
17 
(2) RECESSION ADJUSTMENT PERIOD.—The 
18 
term ‘‘recession adjustment period’’ means the pe19 
riod beginning on October 1, 2008, and ending on 
20 
December 31, 2010. 
21 


(3) SECRETARY.—The term ‘‘Secretary’’ means 

22 


the Secretary of Health and Human Services. 

23 


(4) SMAP.—The term ‘‘SMAP’’ means, for a 

24 


State, 100 percent minus the Federal medical assist


25 


ance percentage.. 

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599 

1 


(5) STATE.—The term ‘‘State’’ has the mean


2 


ing given such term in section 1101(a)(1) of the So


3 


cial Security Act (42 U.S.C. 1301(a)(1)) for pur


4 


poses of title XIX of the Social Security Act (42 

5 


U.S.C. 1396 et seq.). 
6 
(i) SUNSET.—This section shall not apply to items 
7 
and services furnished after the end of the recession ad8 
justment period. 
9 
SEC. 5002. MORATORIA ON CERTAIN REGULATIONS. 
10 
(a) EXTENSION OF MORATORIA ON CERTAIN MED11 
ICAID REGULATIONS.—The following sections are each 
12 
amended by striking ‘‘April 1, 2009’’ and inserting ‘‘July 
13 
1, 2009’’: 
14 
(1) Section 7002(a)(1) of the U.S. Troop Read15 
iness, Veterans’ Care, Katrina Recovery, and Iraq 
16 
Accountability Appropriations Act, 2007 (Public 
17 
Law 110–28), as amended by section 7001(a)(1) of 
18 
the Supplemental Appropriations Act, 2008 (Public 
19 
Law 110–252). 
20 
(2) Section 206 of the Medicare, Medicaid, and 
21 


SCHIP Extension Act of 2007 (Public Law 110


22 


173), as amended by section 7001(a)(2) of the Sup


23 


plemental Appropriations Act, 2008 (Public Law 

24 


110–252). 

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600 

1 


(3) Section 7001(a)(3)(A) of the Supplemental 

2 


Appropriations Act, 2008 (Public Law 110–252). 

3 


(b) ADDITIONAL MEDICAID MORATORIUM.—Not4 
withstanding any other provision of law, with respect to 
5 
expenditures for services furnished during the period be6 
ginning on December 8, 2008 and ending on June 30, 
7 
2009, the Secretary of Health and Human Services shall 
8 
not take any action (through promulgation of regulation, 
9 
issuance of regulatory guidance, use of Federal payment 
10 
audit procedures, or other administrative action, policy, or 
11 
practice, including a Medical Assistance Manual trans12 
mittal or letter to State Medicaid directors) to implement 
13 
the final regulation relating to clarification of the defini14 
tion of outpatient hospital facility services under the Med15 
icaid program published on November 7, 2008 (73 Federal 
16 
Register 66187). 
17 
SEC. 5003. TRANSITIONAL MEDICAID ASSISTANCE (TMA). 
18 
(a) 18-MONTH EXTENSION.— 
19 
(1) IN GENERAL.—Sections 1902(e)(1)(B) and 
20 
1925(f) of the Social Security Act (42 U.S.C. 
21 


1396a(e)(1)(B), 1396r–6(f)) are each amended by 

22 


striking ‘‘September 30, 2003’’ and inserting ‘‘De


23 


cember 31, 2010’’. 

24 


(2) EFFECTIVE DATE.—The amendments made 

25 


by this subsection shall take effect on July 1, 2009. 

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601 


1 


(b) STATE OPTION OF INITIAL 12-MONTH ELIGI2 
BILITY.—Section 1925 of the Social Security Act (42 
3 
U.S.C. 1396r–6) is amended— 
4 


(1) in subsection (a)(1), by inserting ‘‘but sub


5 


ject to paragraph (5)’’ after ‘‘Notwithstanding any 
6 
other provision of this title’’; 
7 
(2) by adding at the end of subsection (a) the 
8 
following: 
9 
‘‘(5) OPTION OF 12-MONTH INITIAL ELIGIBILITY 
10 
PERIOD.—A State may elect to treat any reference 
11 
in this subsection to a 6-month period (or 6 months) 
12 
as a reference to a 12-month period (or 12 months). 
13 
In the case of such an election, subsection (b) shall 
14 
not apply.’’; and 
15 
(3) in subsection (b)(1), by inserting ‘‘but sub16 
ject to subsection (a)(5)’’ after ‘‘Notwithstanding 
17 
any other provision of this title’’. 
18 
(c) REMOVAL OF REQUIREMENT FOR PREVIOUS RE19 
CEIPT OF MEDICAL ASSISTANCE.—Section 1925(a)(1) of 
20 
such Act (42 U.S.C. 1396r–6(a)(1)), as amended by sub21 
section (b)(1), is further amended— 
22 


(1) by inserting ‘‘subparagraph (B) and’’ before 

23 


‘‘paragraph (5)’’; 

24 


(2) by redesignating the matter after ‘‘RE


25 


QUIREMENT.—’’ as a subparagraph (A) with the 

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602 

1 


heading ‘‘IN GENERAL.—’’ and with the same inden


2 


tation as subparagraph (B) (as added by paragraph 

3 


(3)); and 

4 


(3) by adding at the end the following: 

5 


‘‘(B) STATE OPTION TO WAIVE REQUIRE6 
MENT FOR 3 MONTHS BEFORE RECEIPT OF 
7 
MEDICAL ASSISTANCE.—A State may, at its op8 
tion, elect also to apply subparagraph (A) in 
9 
the case of a family that was receiving such aid 
10 
for fewer than three months or that had applied 
11 
for and was eligible for such aid for fewer than 
12 
3 months during the 6 immediately preceding 
13 
months described in such subparagraph.’’. 
14 
(d) CMS REPORT ON ENROLLMENT AND PARTICIPA15 
TION RATES UNDER TMA.—Section 1925 of such Act (42 
16 
U.S.C. 1396r–6), as amended by this section, is further 
17 
amended by adding at the end the following new sub18 
section: 
19 
‘‘(g) COLLECTION AND REPORTING OF PARTICIPA20 
TION INFORMATION.— 
21 
‘‘(1) COLLECTION OF INFORMATION FROM 
22 


STATES.—Each State shall collect and submit to the 

23 


Secretary (and make publicly available), in a format 

24 


specified by the Secretary, information on average 

25 


monthly enrollment and average monthly participa


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603 

1 


tion rates for adults and children under this section 

2 


and of the number and percentage of children who 

3 


become ineligible for medical assistance under this 

4 


section whose medical assistance is continued under 

5 


another eligibility category or who are enrolled under 
6 
the State’s child health plan under title XXI. Such 
7 
information shall be submitted at the same time and 
8 
frequency in which other enrollment information 
9 
under this title is submitted to the Secretary. 
10 
‘‘(2) ANNUAL REPORTS TO CONGRESS.—Using 
11 
the information submitted under paragraph (1), the 
12 
Secretary shall submit to Congress annual reports 
13 
concerning enrollment and participation rates de14 
scribed in such paragraph.’’. 
15 
(e) EFFECTIVE DATE.—The amendments made by 
16 
subsections (b) through (d) shall take effect on July 1, 
17 
2009. 
18 
SEC. 5004. STATE ELIGIBILITY OPTION FOR FAMILY PLAN19 
NING SERVICES. 
20 
(a) COVERAGE AS OPTIONAL CATEGORICALLY 
21 
NEEDY GROUP.— 
22 


(1) IN GENERAL.—Section 1902(a)(10)(A)(ii) 
23 
of the Social Security Act (42 U.S.C. 
24 


1396a(a)(10)(A)(ii)), as amended by section 3003(a) 

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604 

1 


of the Health Insurance Assistance for the Unem


2 


ployed Act of 2009, is amended— 

3 


(A) in subclause (XIX), by striking ‘‘or’’ at 

4 


the end; 

5 


(B) in subclause (XX), by adding ‘‘or’’ at 
6 
the end; and 
7 
(C) by adding at the end the following new 
8 
subclause: 
9 
‘‘(XXI) who are described in subsection (ee) 
10 
(relating to individuals who meet certain income 
11 
standards);’’. 
12 
(2) GROUP DESCRIBED.—Section 1902 of such 
13 
Act (42 U.S.C. 1396a), as amended by section 
14 
3003(a) of the Health Insurance Assistance for the 
15 
Unemployed Act of 2009, is amended by adding at 
16 
the end the following new subsection: 
17 
‘‘(ee)(1) Individuals described in this subsection are 
18 
individuals— 
19 
‘‘(A) whose income does not exceed an in20 
come eligibility level established by the State 
21 


that does not exceed the highest income eligi


22 


bility level established under the State plan 

23 


under this title (or under its State child health 

24 


plan under title XXI) for pregnant women; and 

25 


‘‘(B) who are not pregnant. 

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605 

1 


‘‘(2) At the option of a State, individuals de


2 


scribed in this subsection may include individuals 

3 


who, had individuals applied on or before January 1, 

4 


2007, would have been made eligible pursuant to the 

5 


standards and processes imposed by that State for 
6 
benefits described in clause (XV) of the matter fol7 
lowing subparagraph (G) of section subsection 
8 
(a)(10) pursuant to a waiver granted under section 
9 
1115. 
10 
‘‘(3) At the option of a State, for purposes of 
11 
subsection (a)(17)(B), in determining eligibility for 
12 
services under this subsection, the State may con13 
sider only the income of the applicant or recipient.’’. 
14 
(3) LIMITATION ON BENEFITS.—Section 
15 
1902(a)(10) of the Social Security Act (42 U.S.C. 
16 
1396a(a)(10)) is amended in the matter following 
17 
subparagraph (G)— 
18 
(A) by striking ‘‘and (XIV)’’ and inserting 
19 
‘‘(XIV)’’; and 
20 
(B) by inserting ‘‘, and (XV) the medical 
21 


assistance made available to an individual de


22 


scribed in subsection (ee) shall be limited to 

23 


family planning services and supplies described 

24 


in section 1905(a)(4)(C) including medical di


25 


agnosis and treatment services that are pro-

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606 

1 


vided pursuant to a family planning service in 

2 


a family planning setting’’ after ‘‘cervical can3 
cer’’. 
4 
(4) CONFORMING AMENDMENTS.—Section 
5 


1905(a) of the Social Security Act (42 U.S.C. 
6 
1396d(a)), as amended by section 3003(c)(2) of the 
7 
Health Insurance Assistance for the Unemployed 
8 
Act of 2009, is amended in the matter preceding 
9 
paragraph (1)— 
10 
(A) in clause (xiii), by striking ‘‘or’’ at the 
11 
end; 
12 
(B) in clause (xiv), by adding ‘‘or’’ at the 
13 
end; and 
14 
(C) by inserting after clause (xiii) the fol15 
lowing: 
16 
‘‘(xv) individuals described in section 
17 
1902(ee),’’. 
18 
(b) PRESUMPTIVE ELIGIBILITY.— 
19 
(1) IN GENERAL.—Title XIX of the Social Se20 
curity Act (42 U.S.C. 1396 et seq.) is amended by 
21 


inserting after section 1920B the following: 
22 
‘‘PRESUMPTIVE ELIGIBILITY FOR FAMILY PLANNING 
23 
SERVICES 
24 


‘‘SEC. 1920C. (a) STATE OPTION.—State plan ap25 
proved under section 1902 may provide for making med26 
ical assistance available to an individual described in sec


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607 
1 
tion 1902(ee) (relating to individuals who meet certain in2 
come eligibility standard) during a presumptive eligibility 
3 
period. In the case of an individual described in section 
4 
1902(ee), such medical assistance shall be limited to fam5 
ily planning services and supplies described in 
6 
1905(a)(4)(C) and, at the State’s option, medical diag7 
nosis and treatment services that are provided in conjunc8 
tion with a family planning service in a family planning 
9 
setting. 
10 
‘‘(b) DEFINITIONS.—For purposes of this section: 
11 
‘‘(1) PRESUMPTIVE ELIGIBILITY PERIOD.—The 
12 
term ‘presumptive eligibility period’ means, with re13 
spect to an individual described in subsection (a), 
14 
the period that— 
15 
‘‘(A) begins with the date on which a 
16 
qualified entity determines, on the basis of pre17 
liminary information, that the individual is de18 
scribed in section 1902(ee); and 
19 
‘‘(B) ends with (and includes) the earlier 
20 
of— 
21 


‘‘(i) the day on which a determination 

22 


is made with respect to the eligibility of 

23 


such individual for services under the State 
24 
plan; or 

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608 

1 


‘‘(ii) in the case of such an individual 

2 


who does not file an application by the last 

3 


day of the month following the month dur


4 


ing which the entity makes the determina


5 


tion referred to in subparagraph (A), such 
6 
last day. 
7 
‘‘(2) QUALIFIED ENTITY.— 
8 
‘‘(A) IN GENERAL.—Subject to subpara9 
graph (B), the term ‘qualified entity’ means 
10 
any entity that— 
11 
‘‘(i) is eligible for payments under a 
12 
State plan approved under this title; and 
13 
‘‘(ii) is determined by the State agen14 
cy to be capable of making determinations 
15 
of the type described in paragraph (1)(A). 
16 
‘‘(B) RULE OF CONSTRUCTION.—Nothing 
17 
in this paragraph shall be construed as pre18 
venting a State from limiting the classes of en19 
tities that may become qualified entities in 
20 
order to prevent fraud and abuse. 
21 


‘‘(c) ADMINISTRATION.— 

22 


‘‘(1) IN GENERAL.—The State agency shall pro


23 


vide qualified entities with— 

24 


‘‘(A) such forms as are necessary for an 

25 


application to be made by an individual de


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609 

1 


scribed in subsection (a) for medical assistance 

2 


under the State plan; and 

3 


‘‘(B) information on how to assist such in


4 


dividuals in completing and filing such forms. 

5 


‘‘(2) NOTIFICATION REQUIREMENTS.—A quali6 
fied entity that determines under subsection 
7 
(b)(1)(A) that an individual described in subsection 
8 
(a) is presumptively eligible for medical assistance 
9 
under a State plan shall— 
10 
‘‘(A) notify the State agency of the deter11 
mination within 5 working days after the date 
12 
on which determination is made; and 
13 
‘‘(B) inform such individual at the time 
14 
the determination is made that an application 
15 
for medical assistance is required to be made by 
16 
not later than the last day of the month fol17 
lowing the month during which the determina18 
tion is made. 
19 
‘‘(3) APPLICATION FOR MEDICAL ASSIST20 
ANCE.—In the case of an individual described in 
21 


subsection (a) who is determined by a qualified enti


22 


ty to be presumptively eligible for medical assistance 

23 


under a State plan, the individual shall apply for 

24 


medical assistance by not later than the last day of 

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610 

1 


the month following the month during which the de


2 


termination is made. 

3 


‘‘(d) PAYMENT.—Notwithstanding any other provi4 
sion of law, medical assistance that— 
5 


‘‘(1) is furnished to an individual described in 
6 
subsection (a)— 
7 
‘‘(A) during a presumptive eligibility pe8 
riod; 
9 
‘‘(B) by a entity that is eligible for pay10 
ments under the State plan; and 
11 
‘‘(2) is included in the care and services covered 
12 
by the State plan, 
13 
shall be treated as medical assistance provided by such 
14 
plan for purposes of clause (4) of the first sentence of 
15 
section 1905(b).’’. 
16 
(2) CONFORMING AMENDMENTS.— 
17 
(A) Section 1902(a)(47) of the Social Se18 
curity Act (42 U.S.C. 1396a(a)(47)) is amend19 
ed by inserting before the semicolon at the end 
20 
the following: ‘‘and provide for making medical 
21 


assistance available to individuals described in 

22 


subsection (a) of section 1920C during a pre


23 


sumptive eligibility period in accordance with 

24 


such section’’. 

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611 

1 


(B) Section 1903(u)(1)(D)(v) of such Act 

2 


(42 U.S.C. 1396b(u)(1)(D)(v)) is amended— 

3 


(i) by striking ‘‘or for’’ and inserting 

4 


‘‘for’’; and 

5 


(ii) by inserting before the period the 
6 
following: ‘‘, or for medical assistance pro7 
vided to an individual described in sub8 
section (a) of section 1920C during a pre9 
sumptive eligibility period under such sec10 
tion’’. 
11 
(c) CLARIFICATION OF COVERAGE OF FAMILY PLAN12 
NING SERVICES AND SUPPLIES.—Section 1937(b) of the 
13 
Social Security Act (42 U.S.C. 1396u–7(b)) is amended 
14 
by adding at the end the following: 
15 
‘‘(5) COVERAGE OF FAMILY PLANNING SERV16 
ICES AND SUPPLIES.—Notwithstanding the previous 
17 
provisions of this section, a State may not provide 
18 
for medical assistance through enrollment of an indi19 
vidual with benchmark coverage or benchmark-equiv20 
alent coverage under this section unless such cov21 


erage includes for any individual described in section 

22 


1905(a)(4)(C), medical assistance for family plan


23 


ning services and supplies in accordance with such 
24 
section.’’. 

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612 

1 


(d) EFFECTIVE DATE.—The amendments made by 
2 
this section take effect on the date of the enactment of 
3 
this Act and shall apply to items and services furnished 
4 
on or after such date. 
5 
SEC. 5005. PROTECTIONS FOR INDIANS UNDER MEDICAID 
6 
AND CHIP. 
7 
(a) PREMIUMS AND COST SHARING PROTECTION 
8 
UNDER MEDICAID.— 
9 
(1) IN GENERAL.—Section 1916 of the Social 
10 
Security Act (42 U.S.C. 1396o) is amended— 
11 
(A) in subsection (a), in the matter pre12 
ceding paragraph (1), by striking ‘‘and (i)’’ and 
13 
inserting ‘‘, (i), and (j)’’; and 
14 
(B) by adding at the end the following new 
15 
subsection: 
16 
‘‘(j) NO PREMIUMS OR COST SHARING FOR INDIANS 
17 
FURNISHED ITEMS OR SERVICES DIRECTLY BY INDIAN 
18 
HEALTH PROGRAMS OR THROUGH REFERRAL UNDER 
19 
CONTRACT HEALTH SERVICES.— 
20 
‘‘(1) NO COST SHARING FOR ITEMS OR SERV21 


ICES FURNISHED TO INDIANS THROUGH INDIAN 

22 


HEALTH PROGRAMS.— 

23 


‘‘(A) IN GENERAL.—No enrollment fee, 

24 


premium, or similar charge, and no deduction, 

25 


copayment, cost sharing, or similar charge shall 

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613 

1 


be imposed against an Indian who is furnished 

2 


an item or service directly by the Indian Health 

3 


Service, an Indian Tribe, Tribal Organization, 

4 


or Urban Indian Organization or through refer


5 


ral under contract health services for which 
6 
payment may be made under this title. 
7 
‘‘(B) NO REDUCTION IN AMOUNT OF PAY8 
MENT TO INDIAN HEALTH PROVIDERS.—Pay9 
ment due under this title to the Indian Health 
10 
Service, an Indian Tribe, Tribal Organization, 
11 
or Urban Indian Organization, or a health care 
12 
provider through referral under contract health 
13 
services for the furnishing of an item or service 
14 
to an Indian who is eligible for assistance under 
15 
such title, may not be reduced by the amount 
16 
of any enrollment fee, premium, or similar 
17 
charge, or any deduction, copayment, cost shar18 
ing, or similar charge that would be due from 
19 
the Indian but for the operation of subpara20 
graph (A). 
21 
‘‘(2) RULE OF CONSTRUCTION.—Nothing in 
22 


this subsection shall be construed as restricting the 

23 


application of any other limitations on the imposi


24 


tion of premiums or cost sharing that may apply to 

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614 

1 


an individual receiving medical assistance under this 

2 


title who is an Indian.’’. 
3 
(2) CONFORMING AMENDMENT.—Section 
4 


1916A(b)(3) of such Act (42 U.S.C. 1396o–1(b)(3)) 

5 


is amended— 
6 
(A) in subparagraph (A), by adding at the 
7 
end the following new clause: 
8 
‘‘(vi) An Indian who is furnished an 
9 
item or service directly by the Indian 
10 
Health Service, an Indian Tribe, Tribal 
11 
Organization or Urban Indian Organiza12 
tion or through referral under contract 
13 
health services.’’; and 
14 
(B) in subparagraph (B), by adding at the 
15 
end the following new clause: 
16 
‘‘(ix) Items and services furnished to 
17 
an Indian directly by the Indian Health 
18 
Service, an Indian Tribe, Tribal Organiza19 
tion or Urban Indian Organization or 
20 
through referral under contract health 
21 


services.’’. 

22 


(3) EFFECTIVE DATE.—The amendments made 

23 


by this subsection shall take effect on October 1, 
24 
2009. 

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615 

1 


(b) TREATMENT OF CERTAIN PROPERTY FROM RE2 
SOURCES FOR MEDICAID AND CHIP ELIGIBILITY.— 
3 


(1) MEDICAID.—Section 1902 of the Social Se


4 


curity Act (42 U.S.C. 1396a), as amended by sec


5 


tion 3003(a) of the Health Insurance Assistance for 
6 
the Unemployed Act of 2009 and section 5004, is 
7 
amended by adding at the end the following new 
8 
subsection: 
9 
‘‘(ff) Notwithstanding any other requirement of this 
10 
title or any other provision of Federal or State law, a State 
11 
shall disregard the following property from resources for 
12 
purposes of determining the eligibility of an individual who 
13 
is an Indian for medical assistance under this title: 
14 
‘‘(1) Property, including real property and im15 
provements, that is held in trust, subject to Federal 
16 
restrictions, or otherwise under the supervision of 
17 
the Secretary of the Interior, located on a reserva18 
tion, including any federally recognized Indian 
19 
Tribe’s reservation, pueblo, or colony, including 
20 
former reservations in Oklahoma, Alaska Native re21 


gions established by the Alaska Native Claims Set


22 


tlement Act, and Indian allotments on or near a res


23 


ervation as designated and approved by the Bureau 

24 


of Indian Affairs of the Department of the Interior. 

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616 

1 


‘‘(2) For any federally recognized Tribe not de


2 


scribed in paragraph (1), property located within the 

3 


most recent boundaries of a prior Federal reserva4 
tion. 
5 


‘‘(3) Ownership interests in rents, leases, royal6 
ties, or usage rights related to natural resources (in7 
cluding extraction of natural resources or harvesting 
8 
of timber, other plants and plant products, animals, 
9 
fish, and shellfish) resulting from the exercise of fed10 
erally protected rights. 
11 
‘‘(4) Ownership interests in or usage rights to 
12 
items not covered by paragraphs (1) through (3) 
13 
that have unique religious, spiritual, traditional, or 
14 
cultural significance or rights that support subsist15 
ence or a traditional lifestyle according to applicable 
16 
tribal law or custom.’’. 
17 
(2) APPLICATION TO CHIP.—Section 2107(e)(1) 
18 
of such Act (42 U.S.C. 1397gg(e)(1)) is amended by 
19 
adding at the end the following new subparagraph: 
20 
‘‘(E) Section 1902(ff) (relating to dis21 


regard of certain property for purposes of mak


22 


ing eligibility determinations).’’. 

23 


(c) CONTINUATION OF CURRENT LAW PROTECTIONS 
24 
OF CERTAIN INDIAN PROPERTY FROM MEDICAID ESTATE 

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617 
1 
RECOVERY.—Section 1917(b)(3) of the Social Security 
2 
Act (42 U.S.C. 1396p(b)(3)) is amended— 
3 


(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; and 

4 


(2) by adding at the end the following new sub


5 


paragraph: 
6 
‘‘(B) The standards specified by the Sec7 
retary under subparagraph (A) shall require 
8 
that the procedures established by the State 
9 
agency under subparagraph (A) exempt income, 
10 
resources, and property that are exempt from 
11 
the application of this subsection as of April 1, 
12 
2003, under manual instructions issued to carry 
13 
out this subsection (as in effect on such date) 
14 
because of the Federal responsibility for Indian 
15 
Tribes and Alaska Native Villages. Nothing in 
16 
this subparagraph shall be construed as pre17 
venting the Secretary from providing additional 
18 
estate recovery exemptions under this title for 
19 
Indians.’’. 
20 
SEC. 5006. CONSULTATION ON MEDICAID AND CHIP. 
21 


(a) IN GENERAL.—Section 1139 of the Social Secu22 
rity Act (42 U.S.C. 1320b–9) is amended to read as fol23 
lows: 

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618 

1 


‘‘CONSULTATION WITH TRIBAL TECHNICAL ADVISORY 

2 


GROUP (TTAG) 

3 


‘‘SEC. 1139. The Secretary shall maintain within the 
4 
Centers for Medicaid & Medicare Services (CMS) a Tribal 
5 
Technical Advisory Group, which was first established in 
6 
accordance with requirements of the charter dated Sep7 
tember 30, 2003, and the Secretary shall include in such 
8 
Group a representative of the Urban Indian Organizations 
9 
and the Service. The representative of the Urban Indian 
10 
Organization shall be deemed to be an elected officer of 
11 
a tribal government for purposes of applying section 
12 
204(b) of the Unfunded Mandates Reform Act of 1995 
13 
(2 U.S.C. 1534(b)).’’. 
14 
(b) SOLICITATION OF ADVICE UNDER MEDICAID AND 
15 
CHIP.— 
16 
(1) MEDICAID STATE PLAN AMENDMENT.—Sec17 
tion 1902(a) of the Social Security Act (42 U.S.C. 
18 
1396a(a)) is amended— 
19 
(A) in paragraph (70), by striking ‘‘and’’ 
20 
at the end; 
21 


(B) in paragraph (71), by striking the pe


22 


riod at the end and inserting ‘‘; and’’; and 

23 


(C) by inserting after paragraph (71), the 

24 


following new paragraph: 

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619 

1 


‘‘(72) in the case of any State in which 1 or 

2 


more Indian Health Programs or Urban Indian Or


3 


ganizations furnishes health care services, provide 

4 


for a process under which the State seeks advice on 

5 


a regular, ongoing basis from designees of such In6 
dian Health Programs and Urban Indian Organiza7 
tions on matters relating to the application of this 
8 
title that are likely to have a direct effect on such 
9 
Indian Health Programs and Urban Indian Organi10 
zations and that— 
11 
‘‘(A) shall include solicitation of advice 
12 
prior to submission of any plan amendments, 
13 
waiver requests, and proposals for demonstra14 
tion projects likely to have a direct effect on In15 
dians, Indian Health Programs, or Urban In16 
dian Organizations; and 
17 
‘‘(B) may include appointment of an advi18 
sory committee and of a designee of such In19 
dian Health Programs and Urban Indian Orga20 
nizations to the medical care advisory com21 


mittee advising the State on its State plan 

22 


under this title.’’. 

23 


(2) APPLICATION TO CHIP.—Section 2107(e)(1) 

24 


of such Act (42 U.S.C. 1397gg(e)(1)), as amended 

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620 

1 


by section 5005(b), is amended by adding at the end 

2 


the following new subparagraph: 

3 


‘‘(F) Section 1902(a)(72) (relating to re


4 


quiring certain States to seek advice from des


5 


ignees of Indian Health Programs and Urban 
6 
Indian Organizations).’’. 
7 
(c) RULE OF CONSTRUCTION.—Nothing in the 
8 
amendments made by this section shall be construed as 
9 
superseding existing advisory committees, working groups, 
10 
guidance, or other advisory procedures established by the 
11 
Secretary of Health and Human Services or by any State 
12 
with respect to the provision of health care to Indians. 
13 
SEC. 5007. TEMPORARY INCREASE IN DSH ALLOTMENTS 
14 
DURING RECESSION. 
15 
Section 1923(f)(3) of the Social Security Act (42 
16 
U.S.C. 1396r-4(f)(3)) is amended— 
17 
(1) in subparagraph (A), by striking ‘‘para18 
graph (6)’’ and inserting ‘‘paragraph (6) and sub19 
paragraph (E)’’; and 
20 
(2) by adding at the end the following new sub21 


paragraph: 
22 
‘‘(E) TEMPORARY INCREASE IN ALLOT23 


MENTS DURING RECESSION.— 

24 


‘‘(i) IN GENERAL.—Subject to clause 

25 


(ii), the DSH allotment for any State— 

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621 

1 


‘‘(I) for fiscal year 2009 is equal 

2 


to 102.5 percent of the DSH allot


3 


ment that would be determined under 

4 


this paragraph for the State for fiscal 

5 


year 2009 without application of this 
6 
subparagraph, notwithstanding sub7 
paragraph (B); 
8 
‘‘(II) for fiscal year 2010 is equal 
9 
to 102.5 percent of the the DSH al10 
lotment for the State for fiscal year 
11 
2009, as determined under subclause 
12 
(I); and 
13 
‘‘(III) for each succeeding fiscal 
14 
year is equal to the DSH allotment 
15 
for the State under this paragraph de16 
termined without applying subclauses 
17 
(I) and (II). 
18 
‘‘(ii) APPLICATION.—Clause (i) shall 
19 
not apply to a State for a year in the case 
20 
that the DSH allotment for such State for 
21 


such year under this paragraph determined 

22 


without applying clause (i) would grow 

23 


higher than the DSH allotment specified 

24 


under clause (i) for the State for such 
25 
year.’’. 

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622 

1 


TITLE VI—BROADBAND 

2 


COMMUNICATIONS 

3 
SEC. 6001. INVENTORY OF BROADBAND SERVICE CAPA4 


BILITY AND AVAILABILITY. 

5 


(a) ESTABLISHMENT.—To provide a comprehensive 
6 
nationwide inventory of existing broadband service capa7 
bility and availability, the National Telecommunications 
8 
and Information Administration (‘‘NTIA’’) shall develop 
9 
and maintain a broadband inventory map of the United 
10 
States that identifies and depicts the geographic extent 
11 
to which broadband service capability is deployed and 
12 
available from a commercial provider or public provider 
13 
throughout each State. 
14 
(b) PUBLIC AVAILABILITY AND INTERACTIVITY.— 
15 
Not later than 2 years after the date of enactment of this 
16 
Act, the NTIA shall make the broadband inventory map 
17 
developed and maintained pursuant to this section acces18 
sible by the public on a World Wide Web site of the NTIA 
19 
in a form that is interactive and searchable. 
20 
SEC. 6002. WIRELESS AND BROADBAND DEPLOYMENT 
21 


GRANT PROGRAMS. 

22 


(a) GRANTS AUTHORIZED.— 

23 


(1) IN GENERAL.—The National Telecommuni


24 


cations and Information Administration (‘‘NTIA’’) 

25 


is authorized to carry out a program to award 

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623 

1 


grants to eligible entities for the non-recurring costs 

2 


associated with the deployment of broadband infra


3 


structure in rural, suburban, and urban areas, in ac


4 


cordance with the requirements of this section. 

5 


(2) PROGRAM WEBSITE.—The NTIA shall de6 
velop and maintain a website to make publicly avail7 
able information about the program described in 
8 
paragraph (1), including— 
9 
(A) each prioritization report submitted by 
10 
a State under subsection (b); 
11 
(B) a list of eligible entities that have ap12 
plied for a grant under this section, and the 
13 
area or areas the entity proposes to serve; and 
14 
(C) the status of each such application, 
15 
whether approved, denied, or pending. 
16 
(b) STATE PRIORITIES.— 
17 
(1) PRIORITIES REPORT SUBMISSION.—Not 
18 
later than 75 days after the date of enactment of 
19 
this section, each State intending to participate in 
20 
the program under this section shall submit to the 
21 


NTIA a report indicating the geographic areas of 

22 


the State which— 

23 


(A) for the purposes of determining the 

24 


need for Wireless Deployment Grants under 

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624 

1 


subsection (c), the State considers to have the 

2 


greatest priority for— 

3 


(i) wireless voice service in unserved 

4 


areas; and 

5 


(ii) advanced wireless broadband serv6 
ice in underserved areas; and 
7 
(B) for the purposes of determining the 
8 
need for Broadband Deployment Grants under 
9 
subsection (d), the State considers to have the 
10 
greatest priority for— 
11 
(i) basic broadband service in 
12 
unserved areas; and 
13 
(ii) advanced broadband service in un14 
derserved areas. 
15 
(2) LIMITATION.—The unserved and under16 
served areas identified by a State in the report re17 
quired by this subsection shall not represent, in the 
18 
aggregate, more than 20 percent of the population 
19 
of such State. 
20 
(c) WIRELESS DEPLOYMENT GRANTS.— 
21 


(1) AUTHORIZED ACTIVITY.—The NTIA shall 

22 


award Wireless Deployment Grants in accordance 

23 


with this subsection from amounts authorized for 

24 


Wireless Deployment Grants by this subtitle to eligi


25 


ble entities to deploy necessary infrastructure for the 

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625 

1 


provision of wireless voice service or advanced wire


2 


less broadband service to end users in designated 

3 


areas. 

4 


(2) GRANT DISTRIBUTION.—The NTIA shall 

5 


seek to distribute grants, to the extent possible, so 
6 
that 25 percent of the grants awarded under this 
7 
subsection shall be awarded to eligible entities for 
8 
providing wireless voice service to unserved areas 
9 
and 75 percent of grants awarded under this sub10 
section shall be awarded to eligible entities for pro11 
viding advanced wireless broadband service to under12 
served areas. 
13 
(d) BROADBAND DEPLOYMENT GRANTS.— 
14 
(1) AUTHORIZED ACTIVITY.—The NTIA shall 
15 
award Broadband Deployment Grants in accordance 
16 
with this subsection from amounts authorized for 
17 
Broadband Deployment Grants by this subtitle to el18 
igible entities to deploy necessary infrastructure for 
19 
the provision of basic broadband service or advanced 
20 
broadband service to end users in designated areas. 
21 


(2) GRANT DISTRIBUTION.—The NTIA shall 

22 


seek to distribute grants, to the extent possible, so 

23 


that 25 percent of the grants awarded under this 

24 


subsection shall be awarded to eligible entities for 

25 


providing basic broadband service to unserved areas 

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626 

1 


and 75 percent of grants awarded under this sub


2 


section shall be awarded to eligible entities for pro


3 


viding advanced broadband service to underserved 

4 


areas. 

5 


(e) GRANT REQUIREMENTS.—The NTIA shall— 
6 
(1) adopt rules to protect against unjust enrich7 
ment; and 
8 
(2) ensure that grant recipients— 
9 
(A) meet buildout requirements; 
10 
(B) maximize use of the supported infra11 
structure by the public; 
12 
(C) operate basic and advanced broadband 
13 
service networks on an open access basis; 
14 
(D) operate advanced wireless broadband 
15 
service on a wireless open access basis; and 
16 
(E) adhere to the principles contained in 
17 
the Federal Communications Commission’s 
18 
broadband policy statement (FCC 05-151, 
19 
adopted August 5, 2005). 
20 
(f) APPLICATIONS.— 
21 


(1) SUBMISSION.—To be considered for a grant 

22 


awarded under subsection (c) or (d), an eligible enti


23 


ty shall submit to the NTIA an application at such 

24 


time, in such manner, and containing such informa


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627 

1 


tion and assurances as the NTIA may require. Such 

2 


an application shall include— 

3 


(A) a cost-study estimate for serving the 

4 


particular geographic area to be served by the 

5 


entity; 
6 
(B) a proposed build-out schedule to resi7 
dential households and small businesses in the 
8 
area; 
9 
(C) for applicants for Wireless Deployment 
10 
Grants under subsection (c), a build-out sched11 
ule for geographic coverage of such areas; and 
12 
(D) any other requirements the NTIA 
13 
deems necessary. 
14 
(2) SELECTION.— 
15 
(A) NOTIFICATION.—The NTIA shall no16 
tify each eligible entity that has submitted a 
17 
complete application whether the entity has 
18 
been approved or denied for a grant under this 
19 
section in a timely fashion. 
20 
(B) GRANT DISTRIBUTION CONSIDER21 


ATIONS.—In awarding grants under this sec


22 


tion, the NTIA shall, to the extent practical— 

23 


(i) award not less than one grant in 

24 


each State; 

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628 

1 


(ii) give substantial weight to whether 

2 


an application is from an eligible entity to 

3 


deploy infrastructure in an area that is an 

4 


area— 

5 


(I) identified by a State in a re6 
port submitted under subsection (b); 
7 
or 
8 
(II) in which the NTIA deter9 
mines there will be a significant 
10 
amount of public safety or emergency 
11 
response use of the infrastructure; 
12 
(iii) consider whether an application 
13 
from an eligible entity to deploy infrastruc14 
ture in an area— 
15 
(I) will, if approved, increase the 
16 
affordability of, or subscribership to, 
17 
service to the greatest population of 
18 
underserved users in the area; 
19 
(II) will, if approved, enhance 
20 
service for health care delivery, edu21 


cation, or children to the greatest pop


22 


ulation of underserved users in the 
23 
area; 

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629 

1 


(III) contains concrete plans for 

2 


enhancing computer ownership or 

3 


computer literacy in the area; 

4 


(IV) is from a recipient of more 

5 


than 20 percent matching grants from 
6 
State, local, or private entities for 
7 
service in the area and the extent of 
8 
such commitment; 
9 
(V) will, if approved, result in 
10 
unjust enrichment because the eligible 
11 
entity has applied for, or intends to 
12 
apply for, support for the non-recur13 
ring costs through another Federal 
14 
program for service in the area; and 
15 
(VI) will, if approved, signifi16 
cantly improve interoperable 
17 
broadband communications systems 
18 
available for use by public safety and 
19 
emergency response; and 
20 
(iv) consider whether the eligible enti21 


ty is a socially and economically disadvan


22 


taged small business concern, as defined 

23 


under section 8(a) of the Small Business 

24 


Act (15 U.S.C. 637). 

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630 


1 
(g) COORDINATION AND CONSULTATION.—The 
2 
NTIA shall coordinate with the Federal Communications 
3 
Commission and shall consult with other appropriate Fed4 
eral agencies in implementing this section. 
5 


(h) REPORT REQUIRED.—The NTIA shall submit an 
6 
annual report to the Committee on Energy and Commerce 
7 
of the House of Representatives and the Committee on 
8 
Commerce, Science, and Transportation of the Senate for 
9 
5 years assessing the impact of the grants funded under 
10 
this section on the basis of the objectives and criteria de11 
scribed in subsection (f)(2)(B)(iii). 
12 
(i) RULEMAKING AUTHORITY.—The NTIA shall have 
13 
the authority to prescribe such rules as necessary to carry 
14 
out the purposes of this section. 
15 
(j) DEFINITIONS.—For the purpose of this section— 
16 
(1) the term ‘‘advanced broadband service’’ 
17 
means a service delivering data to the end user 
18 
transmitted at a speed of at least 45 megabits per 
19 
second downstream and at least 15 megabits per 
20 
second upstream; 
21 


(2) the term ‘‘advanced wireless broadband 

22 


service’’ means a wireless service delivering to the 

23 


end user data transmitted at a speed of at least 3 

24 


megabits per second downstream and at least 1 

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631 

1 


megabit per second upstream over an end-to-end 

2 


internet protocol wireless network; 

3 


(3) the term ‘‘basic broadband service’’ means 

4 


a service delivering data to the end user transmitted 

5 


at a speed of at least 5 megabits per second down6 
stream and at least 1 megabit per second upstream; 
7 
(4) the term ‘‘eligible entity’’ means— 
8 
(A) a provider of wireless voice service, ad9 
vanced wireless broadband service, basic 
10 
broadband service, or advanced broadband serv11 
ice, including a satellite carrier that provides 
12 
any such service; 
13 
(B) a State or unit of local government, or 
14 
agency or instrumentality thereof, that is or in15 
tends to be a provider of any such service; and 
16 
(C) any other entity, including construc17 
tion companies, tower companies, backhaul 
18 
companies, or other service providers, that the 
19 
NTIA authorizes by rule to participate in the 
20 
programs under this section, if such other enti21 


ty is required to provide access to the supported 

22 


infrastructure on a neutral, reasonable basis to 

23 


maximize use; 

24 


(5) the term ‘‘interoperable broadband commu


25 


nications systems’’ means communications systems 

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632 

1 


which enable public safety agencies to share infor


2 


mation among local, State, Federal, and tribal public 

3 


safety agencies in the same area using voice or data 

4 


signals via advanced wireless broadband service; 

5 


(6) the term ‘‘open access’’ shall be defined by 
6 
the Federal Communications Commission not later 
7 
than 45 days after the date of enactment of this sec8 
tion; 
9 
(7) the term ‘‘State’’ includes the District of 
10 
Columbia and the territories and possessions; 
11 
(8) the term ‘‘underserved area’’ shall be de12 
fined by the Federal Communications Commission 
13 
not later than 45 days after the date of enactment 
14 
of this section; 
15 
(9) the term ‘‘unserved area’’ shall be defined 
16 
by the Federal Communications Commission not 
17 
later than 45 days after the date of enactment of 
18 
this section; 
19 
(10) the term ‘‘wireless open access’’ shall be 
20 
defined by the Federal Communications Commission 
21 


not later than 45 days after the date of enactment 

22 


of this section; and 

23 


(11) the term ‘‘wireless voice service’’ means 

24 


the provision of two-way, real-time, voice commu


25 


nications using a mobile service. 

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633 
1 
(k) REVIEW OF DEFINITIONS.—Not later than 3 
2 
months after the date the NTIA makes a broadband in3 
ventory map of the United States accessible to the public 
4 
pursuant to section 6001(b), the Federal Communications 
5 
Commission shall review the definitions of ‘‘underserved 
6 
area’’ and ‘‘unserved area’’, as defined by the Commission 
7 
within 45 days after the date of enactment of this Act 
8 
(as required by paragraphs (8) and (9) of subsection (j)), 
9 
and shall revise such definitions based on the data used 
10 
by the NTIA to develop and maintain such map. 
11 
SEC. 6003. NATIONAL BROADBAND PLAN. 
12 
(a) REPORT REQUIRED.—Not later than 1 year after 
13 
the date of enactment of this section, the Federal Commu14 
nications Commission shall submit to the Committee on 
15 
Energy and Commerce of the House of Representatives 
16 
and the Committee on Commerce, Science, and Transpor17 
tation of the Senate, a report containing a national 
18 
broadband plan. 
19 
(b) CONTENTS OF PLAN.—The national broadband 
20 
plan required by this section shall seek to ensure that all 
21 
people of the United States have access to broadband ca22 
pability and shall establish benchmarks for meeting that 
23 
goal. The plan shall also include— 

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634 

1 


(1) an analysis of the most effective and effi


2 


cient mechanisms for ensuring broadband access by 

3 


all people of the United States; 

4 


(2) a detailed strategy for achieving afford


5 


ability of such service and maximum utilization of 
6 
broadband infrastructure and service by the public; 
7 
and 
8 
(3) a plan for use of broadband infrastructure 
9 
and services in advancing consumer welfare, civic 
10 
participation, public safety and homeland security, 
11 
community development, health care delivery, energy 
12 
independence and efficiency, education, worker train13 
ing, private sector investment, entrepreneurial activ14 
ity, job creation and economic growth, and other na15 
tional purposes. 

16 
TITLE VII—ENERGY 

17 
SEC. 7001. TECHNICAL CORRECTIONS TO THE ENERGY 
18 
INDEPENDENCE AND SECURITY ACT OF 2007. 
19 
(a) Section 543(a) of the Energy Independence and 
20 
Security Act of 2007 (42 U.S.C. 17153(a)) is amended— 
21 


(1) by redesignating paragraphs (2) through 

22 


(4) as paragraphs (3) through (5), respectively; and 

23 


(2) by striking paragraph (1) and inserting the 
24 
following: 

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635 

1 


‘‘(1) 34 percent to eligible units of local govern


2 


ment–alternative 1, in accordance with subsection 
3 
(b); 
4 


‘‘(2) 34 percent to eligible units of local govern


5 


ment–alternative 2, in accordance with subsection 
6 
(b);’’. 
7 
(b) Section 543(b) of the Energy Independence and 
8 
Security Act of 2007 (42 U.S.C. 17153(b)) is amended 
9 
by striking ‘‘subsection (a)(1)’’ and inserting ‘‘subsection 
10 
(a)(1) or (2)’’. 
11 
(c) Section 548(a)(1) of the Energy Independence 
12 
and Security Act of 2007 (42 U.S.C. 17158(a)(1)) is 
13 
amending by striking ‘‘; provided’’ and all that follows 
14 
through ‘‘541(3)(B)’’. 
15 
SEC. 7002. AMENDMENTS TO TITLE XIII OF THE ENERGY 
16 
INDEPENDENCE AND SECURITY ACT OF 2007. 
17 
Title XIII of the Energy Independence and Security 
18 
Act of 2007 (42 U.S.C. 17381 and following) is amended 
19 
as follows: 
20 
(1) By amending subparagraph (A) of section 
21 


1304(b)(3) to read as follows: 

22 


‘‘(A) IN GENERAL.—In carrying out the 

23 


initiative, the Secretary shall provide financial 

24 


support to smart grid demonstration projects in 

25 


urban, suburban, and rural areas, including 

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636 

1 


areas where electric system assets are controlled 

2 


by tax-exempt entities and areas where electric 

3 


system assets are controlled by investor-owned 

4 


utilities.’’. 

5 


(2) By amending subparagraph (C) of section 
6 
1304(b)(3) to read as follows: 
7 
‘‘(C) FEDERAL SHARE OF COST OF TECH8 
NOLOGY INVESTMENTS.—The Secretary shall 
9 
provide to an electric utility described in sub10 
paragraph (B) or to other parties financial as11 
sistance for use in paying an amount equal to 
12 
not more than 50 percent of the cost of quali13 
fying advanced grid technology investments 
14 
made by the electric utility or other party to 
15 
carry out a demonstration project.’’. 
16 
(3) By inserting after section 1304(b)(3)(D) 
17 
the following new subparagraphs: 
18 
‘‘(E) AVAILABILITY OF DATA.—The Sec19 
retary shall establish and maintain a smart grid 
20 
information clearinghouse in a timely manner 
21 


which will make data from smart grid dem


22 


onstration projects and other sources available 

23 


to the public. As a condition of receiving finan


24 


cial assistance under this subsection, a utility or 

25 


other participant in a smart grid demonstration 

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637 

1 


project shall provide such information as the 

2 


Secretary may require to become available 

3 


through the smart grid information clearing


4 


house in the form and within the timeframes as 

5 


directed by the Secretary. The Secretary shall 
6 
assure that business proprietary information 
7 
and individual customer information is not in8 
cluded in the information made available 
9 
through the clearinghouse. 
10 
‘‘(F) OPEN INTERNET-BASED PROTOCOLS 
11 
AND STANDARDS.—The Secretary shall require 
12 
as a condition of receiving funding under this 
13 
subsection that demonstration projects utilize 
14 
open Internet-based protocols and standards if 
15 
available.’’. 
16 
(4) By amending paragraph (2) of section 
17 
1304(c) to read as follows: 
18 
‘‘(2) to carry out subsection (b), such sums as 
19 
may be necessary.’’. 
20 
(5) By amending subsection (a) of section 1306 
21 


by striking ‘‘reimbursement of one-fifth (20 per


22 


cent)’’ and inserting ‘‘grants of up to one-half (50 

23 


percent)’’. 

24 


(6) By striking the last sentence of subsection 

25 


(b)(9) of section 1306. 

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638 

1 


(7) By striking ‘‘are eligible for’’ in subsection 

2 


(c)(1) of section 1306 and inserting ‘‘utilize’’. 

3 


(8) By amending subsection (e) of section 1306 

4 


to read as follows: 
5 
‘‘(e) PROCEDURES AND RULES.—The Secretary 
6 
shall— 
7 
‘‘(1) establish within 60 days after the enact8 
ment of the American Recovery and Reinvestment 
9 
Act of 2009 procedures by which applicants can ob10 
tain grants of not more than one-half of their docu11 
mented costs; 
12 
‘‘(2) require as a condition of receiving a grant 
13 
under this section that grant recipients utilize open 
14 
Internet-based protocols and standards if available; 
15 
‘‘(3) establish procedures to ensure that there is 
16 
no duplication or multiple payment or recovery for 
17 
the same investment or costs, that the grant goes to 
18 
the party making the actual expenditures for quali19 
fying smart grid investments, and that the grants 
20 
made have significant effect in encouraging and fa21 


cilitating the development of a smart grid; 

22 


‘‘(4) maintain public records of grants made, 

23 


recipients, and qualifying smart grid investments 

24 


which have received grants; 

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1 


‘‘(5) establish procedures to provide advance 

2 


payment of moneys up to the full amount of the 

3 


grant award; and 

4 


‘‘(6) have and exercise the discretion to deny 

5 


grants for investments that do not qualify in the 
6 
reasonable judgment of the Secretary.’’. 
7 
SEC. 7003. RENEWABLE ENERGY AND ELECTRIC POWER 
8 
TRANSMISSION LOAN GUARANTEE PROGRAM. 
9 
(a) AMENDMENT.—Title XVII of the Energy Policy 
10 
Act of 2005 (42 U.S.C. 16511 et seq.) is amended by add11 
ing the following at the end: 
12 
‘‘SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOY13 
MENT OF RENEWABLE ENERGY AND ELEC14 
TRIC POWER TRANSMISSION PROJECTS. 
15 
‘‘(a) IN GENERAL.—Notwithstanding section 1703, 
16 
the Secretary may make guarantees under this section 
17 
only for commercial technology projects under subsection 
18 
(b) that will commence construction not later than Sep19 
tember 30, 2011. 
20 
‘‘(b) CATEGORIES.—Projects from only the following 
21 
categories shall be eligible for support under this section: 
22 


‘‘(1) Renewable energy systems, including incre


23 


mental hydropower, that generate electricity. 

24 


‘‘(2) Electric power transmission systems, in


25 


cluding upgrading and reconductoring projects. 

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1 


‘‘(3) Leading edge biofuel projects that will use 

2 


technologies performing at the pilot or demonstra


3 


tion scale that the Secretary determines are likely to 

4 


become commercial technologies and will produce 

5 


transportation fuels that substantially reduce life6 
cycle greenhouse gas emissions compared to other 
7 
transportation fuels. 
8 
‘‘(c) FACTORS RELATING TO ELECTRIC POWER 
9 
TRANSMISSION SYSTEMS.—In determining to make guar10 
antees to projects described in subsection (b)(2), the Sec11 
retary shall consider the following factors: 
12 
‘‘(1) The viability of the project without guar13 
antees. 
14 
‘‘(2) The availability of other Federal and State 
15 
incentives. 
16 
‘‘(3) The importance of the project in meeting 
17 
reliability needs. 
18 
‘‘(4) The effect of the project in meeting a 
19 
State or region’s environment (including climate 
20 
change) and energy goals. 
21 
‘‘(d) WAGE RATE REQUIREMENTS.—The Secretary 
22 
shall require that each recipient of support under this sec23 
tion provide reasonable assurance that all laborers and 
24 
mechanics employed in the performance of the project for 
25 
which the assistance is provided, including those employed 

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641 
1 
by contractors or subcontractors, will be paid wages at 
2 
rates not less than those prevailing on similar work in the 
3 
locality as determined by the Secretary of Labor in accord4 
ance with subchapter IV of chapter 31 of part A of subtitle 
5 
II of title 40, United States Code (commonly referred to 
6 
as the ‘Davis-Bacon Act’). 
7 
‘‘(e) LIMITATION.—Funding under this section for 
8 
projects described in subsection (b)(3) shall not exceed 
9 
$500,000,000. 
10 
‘‘(f) SUNSET.—The authority to enter into guaran11 
tees under this section shall expire on September 30, 
12 
2011.’’. 
13 
(b) TABLE OF CONTENTS AMENDMENT.—The table 
14 
of contents for the Energy Policy Act of 2005 is amended 
15 
by inserting after the item relating to section 1704 the 
16 
following new item: 

‘‘Sec. 1705. Temporary program for rapid deployment of renewable energy and 
electric power transmission projects.’’. 

17 
SEC. 7004. WEATHERIZATION ASSISTANCE PROGRAM 
18 
AMENDMENTS. 
19 
(a) INCOME LEVEL.—Section 412(7) of the Energy 
20 
Conservation and Production Act (42 U.S.C. 6862(7)) is 
21 
amended by striking ‘‘150 percent’’ both places it appears 
22 
and inserting ‘‘200 percent’’. 
23 
(b) ASSISTANCE LEVEL PER DWELLING UNIT.— 
24 
Section 415(c)(1) of the Energy Conservation and Produc


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642 
1 
tion Act (42 U.S.C. 6865(c)(1)) is amended by striking 
2 
‘‘$2,500’’ and inserting ‘‘$5,000’’. 
3 


(c) EFFECTIVE USE OF FUNDS.—In providing funds 
4 
made available by this Act for the Weatherization Assist5 
ance Program, the Secretary may encourage States to give 
6 
priority to using such funds for the most cost-effective ef7 
ficiency activities, which may include insulation of attics, 
8 
if, in the Secretary’s view, such use of funds would in9 
crease the effectiveness of the program. 
10 
SEC. 7005. RENEWABLE ELECTRICITY TRANSMISSION 
11 
STUDY. 
12 
In completing the 2009 National Electric Trans13 
mission Congestion Study, the Secretary of Energy shall 
14 
include— 
15 
(1) an analysis of the significant potential 
16 
sources of renewable energy that are constrained in 
17 
accessing appropriate market areas by lack of ade18 
quate transmission capacity; 
19 
(2) an analysis of the reasons for failure to de20 
velop the adequate transmission capacity; 
21 


(3) recommendations for achieving adequate 

22 


transmission capacity; 

23 


(4) an analysis of the extent to which legal 

24 


challenges filed at the State and Federal level are 

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643 

1 


delaying the construction of transmission necessary 

2 


to access renewable energy; and 

3 


(5) an explanation of assumptions and projec


4 


tions made in the Study, including— 

5 


(A) assumptions and projections relating 
6 
to energy efficiency improvements in each load 
7 
center; 
8 
(B) assumptions and projections regarding 
9 
the location and type of projected new genera10 
tion capacity; and 
11 
(C) assumptions and projections regarding 
12 
projected deployment of distributed generation 
13 
infrastructure. 
14 
SEC. 7006. ADDITIONAL STATE ENERGY GRANTS. 
15 
(a) IN GENERAL.—Amounts appropriated in para16 
graph (6) under the heading ‘‘Department of Energy— 
17 
Energy Programs—Energy Efficiency and Renewable En18 
ergy’’ in title V of division A of this Act shall be available 
19 
to the Secretary of Energy for making additional grants 
20 
under part D of title III of the Energy Policy and Con21 
servation Act (42 U.S.C. 6321 et seq.). The Secretary 
22 
shall make grants under this section in excess of the base 
23 
allocation established for a State under regulations issued 
24 
pursuant to the authorization provided in section 365(f) 
25 
of such Act only if the governor of the recipient State noti


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644 
1 
fies the Secretary of Energy that the governor will seek, 
2 
to the extent of his or her authority, to ensure that each 
3 
of the following will occur: 
4 


(1) The applicable State regulatory authority 

5 


will implement the following regulatory policies for 
6 
each electric and gas utility with respect to which 
7 
the State regulatory authority has ratemaking au8 
thority: 
9 
(A) Policies that ensure that a utility’s re10 
covery of prudent fixed costs of service is timely 
11 
and independent of its retail sales, without in 
12 
the process shifting prudent costs from variable 
13 
to fixed charges. This cost shifting constraint 
14 
shall not apply to rate designs adopted prior to 
15 
the date of enactment of this Act. 
16 
(B) Cost recovery for prudent investments 
17 
by utilities in energy efficiency. 
18 
(C) An earnings opportunity for utilities 
19 
associated with cost-effective energy efficiency 
20 
savings. 
21 


(2) The State, or the applicable units of local 

22 


government that have authority to adopt building 

23 


codes, will implement the following: 

24 


(A) A building energy code (or codes) for 

25 


residential buildings that meets or exceeds the 

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645 

1 


most recently published International Energy 

2 


Conservation Code, or achieves equivalent or 

3 


greater energy savings. 

4 


(B) A building energy code (or codes) for 

5 


commercial buildings throughout the State that 
6 
meets or exceeds the ANSI/ASHRAE/IESNA 
7 
Standard 90.1-2007, or achieves equivalent or 
8 
greater energy savings. 
9 
(C) A plan for the jurisdiction achieving 
10 
compliance with the building energy code or 
11 
codes described in subparagraphs (A) and (B) 
12 
within 8 years of the date of enactment of this 
13 
Act in at least 90 percent of new and renovated 
14 
residential and commercial building space. Such 
15 
plan shall include active training and enforce16 
ment programs and measurement of the rate of 
17 
compliance each year. 
18 
(3) The State will to the extent practicable 
19 
prioritize the grants toward funding energy effi20 
ciency and renewable energy programs, including— 
21 


(A) the expansion of existing energy effi


22 


ciency programs approved by the State or the 

23 


appropriate regulatory authority, including en


24 


ergy efficiency retrofits of buildings and indus


25 


trial facilities, that are funded— 

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646 

1 


(i) by the State; or 

2 


(ii) through rates under the oversight 

3 


of the applicable regulatory authority, to 

4 


the extent applicable; 

5 


(B) the expansion of existing programs, 
6 
approved by the State or the appropriate regu7 
latory authority, to support renewable energy 
8 
projects and deployment activities, including 
9 
programs operated by entities which have the 
10 
authority and capability to manage and dis11 
tribute grants, loans, performance incentives, 
12 
and other forms of financial assistance; and 
13 
(C) cooperation and joint activities between 
14 
States to advance more efficient and effective 
15 
use of this funding to support the priorities de16 
scribed in this paragraph. 
17 
(b) STATE MATCH.—The State cost share require18 
ment under the item relating to ‘‘DEPARTMENT OF 
19 
ENERGY; energy conservation’’ in title II of the Depart20 
ment of the Interior and Related Agencies Appropriations 
21 
Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not 
22 
apply to assistance provided under this section. 
23 


(c) EQUIPMENT AND MATERIALS FOR ENERGY EFFI24 
CIENCY MEASURES.—No limitation on the percentage of 
25 
funding that may be used for the purchase and installation 

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647 
1 
of equipment and materials for energy efficiency measures 
2 
under grants provided under part D of title III of the En3 
ergy Policy and Conservation Act (42 U.S.C. 6321 et seq.) 
4 
shall apply to assistance provided under this section. 
5 
SEC. 7007. INAPPLICABILITY OF LIMITATION. 
6 
The limitations in section 399A(f)(2), (3), and (4) 
7 
of the Energy Policy and Conservation Act (42 U.S.C. 
8 
6371h-1(f)(2), (3), and (4)) shall not apply to grants 
9 
funded with appropriations provided by this Act, except 
10 
that such grant funds shall be available for not more than 
11 
an amount equal to 80 percent of the costs of the project 
12 
for which the grant is provided. 

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