[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1 Enrolled Bill (ENR)]
H.R.1
One Hundred Eleventh Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the sixth day of January, two thousand and nine
An Act
Making supplemental appropriations for job preservation and creation,
infrastructure investment, energy efficiency and science, assistance to
the unemployed, and State and local fiscal stabilization, for the fiscal
year ending September 30, 2009, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``American Recovery and Reinvestment
Act of 2009''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
DIVISION A--APPROPRIATIONS PROVISIONS
TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION,
AND RELATED AGENCIES
TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES
TITLE III--DEPARTMENT OF DEFENSE
TITLE IV--ENERGY AND WATER DEVELOPMENT
TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT
TITLE VI--DEPARTMENT OF HOMELAND SECURITY
TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES
TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND
EDUCATION, AND RELATED AGENCIES
TITLE IX--LEGISLATIVE BRANCH
TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND RELATED AGENCIES
TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS
TITLE XII--TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND RELATED
AGENCIES
TITLE XIII--HEALTH INFORMATION TECHNOLOGY
TITLE XIV--STATE FISCAL STABILIZATION FUND
TITLE XV--ACCOUNTABILITY AND TRANSPARENCY
TITLE XVI--GENERAL PROVISIONS--THIS ACT
DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER
PROVISIONS
TITLE I--TAX PROVISIONS
TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS
TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY;
MISCELLANEOUS MEDICARE PROVISIONS
TITLE V--STATE FISCAL RELIEF
TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM
TITLE VII--LIMITS ON EXECUTIVE COMPENSATION
SEC. 3. PURPOSES AND PRINCIPLES.
(a) Statement of Purposes.--The purposes of this Act include the
following:
(1) To preserve and create jobs and promote economic recovery.
(2) To assist those most impacted by the recession.
(3) To provide investments needed to increase economic
efficiency by spurring technological advances in science and
health.
(4) To invest in transportation, environmental protection, and
other infrastructure that will provide long-term economic benefits.
(5) To stabilize State and local government budgets, in order
to minimize and avoid reductions in essential services and
counterproductive state and local tax increases.
(b) General Principles Concerning Use of Funds.--The President and
the heads of Federal departments and agencies shall manage and expend
the funds made available in this Act so as to achieve the purposes
specified in subsection (a), including commencing expenditures and
activities as quickly as possible consistent with prudent management.
SEC. 4. REFERENCES.
Except as expressly provided otherwise, any reference to ``this
Act'' contained in any division of this Act shall be treated as
referring only to the provisions of that division.
SEC. 5. EMERGENCY DESIGNATIONS.
(a) In General.--Each amount in this Act is designated as an
emergency requirement and necessary to meet emergency needs pursuant to
section 204(a) of S. Con. Res. 21 (110th Congress) and section
301(b)(2) of S. Con. Res. 70 (110th Congress), the concurrent
resolutions on the budget for fiscal years 2008 and 2009.
(b) Pay-as-You-Go.--All applicable provisions in this Act are
designated as an emergency for purposes of pay-as-you-go principles.
DIVISION A--APPROPRIATIONS PROVISIONS
That the following sums are appropriated, out of any money in the
Treasury not otherwise appropriated, for the fiscal year ending
September 30, 2009, and for other purposes, namely:
TITLE I--AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION,
AND RELATED AGENCIES
DEPARTMENT OF AGRICULTURE
Agriculture Buildings and Facilities and Rental Payments
For an additional amount for ``Agriculture Buildings and Facilities
and Rental Payments'', $24,000,000, for necessary construction, repair,
and improvement activities.
office of inspector general
For an additional amount for ``Office of Inspector General'',
$22,500,000, to remain available until September 30, 2013, for
oversight and audit of programs, grants, and activities funded by this
Act and administered by the Department of Agriculture.
Agricultural Research Service
buildings and facilities
For an additional amount for ``Buildings and Facilities'',
$176,000,000, for work on deferred maintenance at Agricultural Research
Service facilities: Provided, That priority in the use of such funds
shall be given to critical deferred maintenance, to projects that can
be completed, and to activities that can commence promptly following
enactment of this Act.
Farm Service Agency
salaries and expenses
For an additional amount for ``Farm Service Agency, Salaries and
Expenses,'' $50,000,000, for the purpose of maintaining and modernizing
the information technology system.
Natural Resources Conservation Service
watershed and flood prevention operations
For an additional amount for ``Watershed and Flood Prevention
Operations'', $290,000,000, of which $145,000,000 is for necessary
expenses to purchase and restore floodplain easements as authorized by
section 403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203)
(except that no more than $30,000,000 of the amount provided for the
purchase of floodplain easements may be obligated for projects in any
one State): Provided, That such funds shall be allocated to projects
that can be fully funded and completed with the funds appropriated in
this Act, and to activities that can commence promptly following
enactment of this Act.
watershed rehabilitation program
For an additional amount for ``Watershed Rehabilitation Program'',
$50,000,000: Provided, That such funds shall be allocated to projects
that can be fully funded and completed with the funds appropriated in
this Act, and to activities that can commence promptly following
enactment of this Act.
Rural Housing Service
rural housing insurance fund program account
For an additional amount for gross obligations for the principal
amount of direct and guaranteed loans as authorized by title V of the
Housing Act of 1949, to be available from funds in the rural housing
insurance fund, as follows: $1,000,000,000 for section 502 direct
loans; and $10,472,000,000 for section 502 unsubsidized guaranteed
loans.
For an additional amount for the cost of direct and guaranteed
loans, including the cost of modifying loans, as defined in section 502
of the Congressional Budget Act of 1974, as follows: $67,000,000 for
section 502 direct loans; and $133,000,000 for section 502 unsubsidized
guaranteed loans.
rural community facilities program account
For an additional amount for the cost of direct loans and grants
for rural community facilities programs as authorized by section 306
and described in section 381E(d)(1) of the Consolidated Farm and Rural
Development Act, $130,000,000.
Rural Business--cooperative Service
rural business program account
For an additional amount for the cost of guaranteed loans and
grants as authorized by sections 310B(a)(2)(A) and 310B(c) of the
Consolidated Farm and Rural Development Act (7 U.S.C. 1932),
$150,000,000.
Rural Utilities Service
rural water and waste disposal program account
For an additional amount for the cost of direct loans and grants
for the rural water, waste water, and waste disposal programs
authorized by sections 306 and 310B and described in section 381E(d)(2)
of the Consolidated Farm and Rural Development Act, $1,380,000,000.
distance learning, telemedicine, and broadband program
For an additional amount for the cost of broadband loans and loan
guarantees, as authorized by the Rural Electrification Act of 1936 (7
U.S.C. 901 et seq.) and for grants (including for technical
assistance), $2,500,000,000: Provided, That the cost of direct and
guaranteed loans shall be as defined in section 502 of the
Congressional Budget Act of 1974: Provided further, That,
notwithstanding title VI of the Rural Electrification Act of 1936, this
amount is available for grants, loans and loan guarantees for broadband
infrastructure in any area of the United States: Provided further, That
at least 75 percent of the area to be served by a project receiving
funds from such grants, loans or loan guarantees shall be in a rural
area without sufficient access to high speed broadband service to
facilitate rural economic development, as determined by the Secretary
of Agriculture: Provided further, That priority for awarding such funds
shall be given to project applications for broadband systems that will
deliver end users a choice of more than one service provider: Provided
further, That priority for awarding funds made available under this
paragraph shall be given to projects that provide service to the
highest proportion of rural residents that do not have access to
broadband service: Provided further, That priority shall be given for
project applications from borrowers or former borrowers under title II
of the Rural Electrification Act of 1936 and for project applications
that include such borrowers or former borrowers: Provided further, That
priority for awarding such funds shall be given to project applications
that demonstrate that, if the application is approved, all project
elements will be fully funded: Provided further, That priority for
awarding such funds shall be given to project applications for
activities that can be completed if the requested funds are provided:
Provided further, That priority for awarding such funds shall be given
to activities that can commence promptly following approval: Provided
further, That no area of a project funded with amounts made available
under this paragraph may receive funding to provide broadband service
under the Broadband Technology Opportunities Program: Provided further,
That the Secretary shall submit a report on planned spending and actual
obligations describing the use of these funds not later than 90 days
after the date of enactment of this Act, and quarterly thereafter until
all funds are obligated, to the Committees on Appropriations of the
House of Representatives and the Senate.
FOOD AND NUTRITION SERVICE CHILD NUTRITION PROGRAMS
For an additional amount for the Richard B. Russell National School
Lunch Act (42 U.S.C. 1751 et. seq.), except section 21, and the Child
Nutrition Act of 1966 (42 U.S.C. 1771 et. seq.), except sections 17 and
21, $100,000,000, to carry out a grant program for National School
Lunch Program equipment assistance: Provided, That such funds shall be
provided to States administering a school lunch program in a manner
proportional with each States' administrative expense allocation:
Provided further, That the States shall provide competitive grants to
school food authorities based upon the need for equipment assistance in
participating schools with priority given to school in which not less
than 50 percent of the students are eligible for free or reduced price
meals under the Richard B. Russell National School Lunch Act.
special supplemental nutrition program for women, infants, and children
(wic)
For an additional amount for the special supplemental nutrition
program as authorized by section 17 of the Child Nutrition Act of 1966
(42 U.S.C. 1786), $500,000,000, of which $400,000,000 shall be placed
in reserve to be allocated as the Secretary deems necessary,
notwithstanding section 17(i) of such Act, to support participation
should cost or participation exceed budget estimates, and of which
$100,000,000 shall be for the purposes specified in section
17(h)(10)(B)(ii): Provided, That up to one percent of the funding
provided for the purposes specified in section 17(h)(10)(B)(ii) may be
reserved by the Secretary for Federal administrative activities in
support of those purposes.
commodity assistance program
For an additional amount for the emergency food assistance program
as authorized by section 27(a) of the Food and Nutrition Act of 2008 (7
U.S.C. 2036(a)) and section 204(a)(1) of the Emergency Food Assistance
Act of 1983 (7 U.S.C. 7508(a)(1)), $150,000,000: Provided, That of the
funds made available, the Secretary may use up to $50,000,000 for costs
associated with the distribution of commodities, of which up to
$25,000,000 shall be made available in fiscal year 2009.
GENERAL PROVISIONS--THIS TITLE
Sec. 101. Temporary Increase in Benefits Under the Supplemental
Nutrition Assistance Program. (a) Maximum Benefit Increase.--
(1) In general.--Beginning the first month that begins not less
than 25 days after the date of enactment of this Act, the value of
benefits determined under section 8(a) of the Food and Nutrition
Act of 2008 and consolidated block grants for Puerto Rico and
American Samoa determined under section 19(a) of such Act shall be
calculated using 113.6 percent of the June 2008 value of the
thrifty food plan as specified under section 3(o) of such Act.
(2) Termination.--
(A) The authority provided by this subsection shall
terminate after September 30, 2009.
(B) Notwithstanding subparagraph (A), the Secretary of
Agriculture may not reduce the value of the maximum allotments,
minimum allotments or consolidated block grants for Puerto Rico
and American Samoa below the level in effect for fiscal year
2009 as a result of paragraph (1).
(b) Requirements for the Secretary.--In carrying out this section,
the Secretary shall--
(1) consider the benefit increases described in subsection (a)
to be a ``mass change'';
(2) require a simple process for States to notify households of
the increase in benefits;
(3) consider section 16(c)(3)(A) of the Food and Nutrition Act
of 2008 (7 U.S.C. 2025(c)(3)(A)) to apply to any errors in the
implementation of this section, without regard to the 120-day limit
described in that section;
(4) disregard the additional amount of benefits that a
household receives as a result of this section in determining the
amount of overissuances under section 13 of the Food and Nutrition
Act of 2008 (7 U.S.C. 2022); and
(5) set the tolerance level for excluding small errors for the
purposes of section 16(c) of the Food and Nutrition Act of 2008 (7
U.S.C. 2025(c)) at $50 through September 30, 2009.
(c) Administrative Expenses.--
(1) In general.--For the costs of State administrative expenses
associated with carrying out this section and administering the
supplemental nutrition assistance program established under the
Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), the
Secretary shall make available $145,000,000 in fiscal year 2009 and
$150,000,000 in fiscal year 2010, of which $4,500,000 is for
necessary expenses of the Food and Nutrition Service for management
and oversight of the program and for monitoring the integrity and
evaluating the effects of the payments made under this section.
(2) Timing for fiscal year 2009.--Not later than 60 days after
the date of enactment of this Act, the Secretary shall make
available to States amounts for fiscal year 2009 under paragraph
(1).
(3) Allocation of funds.--Except as provided for management and
oversight, funds described in paragraph (1) shall be made available
as grants to State agencies for each fiscal year as follows:
(A) 75 percent of the amounts available for each fiscal
year shall be allocated to States based on the share of each
State of households that participate in the supplemental
nutrition assistance program as reported to the Department of
Agriculture for the most recent 12-month period for which data
are available, adjusted by the Secretary (as of the date of
enactment) for participation in disaster programs under section
5(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(h));
and
(B) 25 percent of the amounts available for each fiscal
year shall be allocated to States based on the increase in the
number of households that participate in the supplemental
nutrition assistance program as reported to the Department of
Agriculture over the most recent 12-month period for which data
are available, adjusted by the Secretary (as of the date of
enactment) for participation in disaster programs under section
5(h) of the Food and Nutrition Act of 2008 (7 U.S.C. 2014(h)).
(d) Food Distribution Program on Indian Reservations.--For the
costs relating to facility improvements and equipment upgrades
associated with the Food Distribution Program on Indian Reservations,
as established under section 4(b) of the Food and Nutrition Act of 2008
(7 U.S.C. 2013(b)), the Secretary shall make available $5,000,000:
Provided, That administrative cost-sharing requirements are not
applicable to funds provided in accordance with this provision.
(e) Treatment of Jobless Workers.--
(1) Remainder of fiscal year 2009 through fiscal year 2010.--
Beginning with the first month that begins not less than 25 days
after the date of enactment of this Act and for each subsequent
month through September 30, 2010, eligibility for supplemental
nutrition assistance program benefits shall not be limited under
section 6(o)(2) of the Food and Nutrition Act of 2008 unless an
individual does not comply with the requirements of a program
offered by the State agency that meets the standards of
subparagraphs (B) or (C) of that paragraph.
(2) Fiscal year 2011 and thereafter.--Beginning on October 1,
2010, for the purposes of section 6(o) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2015(o)), a State agency shall disregard any
period during which an individual received benefits under the
supplemental nutrition assistance program prior to October 1, 2010.
(f) Funding.--There are appropriated to the Secretary out of funds
of the Treasury not otherwise appropriated such sums as are necessary
to carry out this section.
Sec. 102. Agricultural Disaster Assistance Transition. (a) Federal
Crop Insurance Act. Section 531(g) of the Federal Crop Insurance Act (7
U.S.C. 1531(g)) is amended by adding at the end the following:
``(7) 2008 transition assistance.--
``(A) In general.--Eligible producers on a farm described
in subparagraph (A) of paragraph (4) that failed to timely pay
the appropriate fee described in that subparagraph shall be
eligible for assistance under this section in accordance with
subparagraph (B) if the eligible producers on the farm--
``(i) pay the appropriate fee described in paragraph
(4)(A) not later than 90 days after the date of enactment
of this paragraph; and
``(ii)(I) in the case of each insurable commodity of
the eligible producers on the farm, excluding grazing land,
agree to obtain a policy or plan of insurance under
subtitle A (excluding a crop insurance pilot program under
that subtitle) for the next insurance year for which crop
insurance is available to the eligible producers on the
farm at a level of coverage equal to 70 percent or more of
the recorded or appraised average yield indemnified at 100
percent of the expected market price, or an equivalent
coverage; and
``(II) in the case of each noninsurable commodity of
the eligible producers on the farm, agree to file the
required paperwork, and pay the administrative fee by the
applicable State filing deadline, for the noninsured crop
assistance program for the next year for which a policy is
available.
``(B) Amount of assistance.--Eligible producers on a farm
that meet the requirements of subparagraph (A) shall be
eligible to receive assistance under this section as if the
eligible producers on the farm--
``(i) in the case of each insurable commodity of the
eligible producers on the farm, had obtained a policy or
plan of insurance for the 2008 crop year at a level of
coverage not to exceed 70 percent or more of the recorded
or appraised average yield indemnified at 100 percent of
the expected market price, or an equivalent coverage; and
``(ii) in the case of each noninsurable commodity of
the eligible producers on the farm, had filed the required
paperwork, and paid the administrative fee by the
applicable State filing deadline, for the noninsured crop
assistance program for the 2008 crop year, except that in
determining the level of coverage, the Secretary shall use
70 percent of the applicable yield.
``(C) Equitable relief.--Except as provided in subparagraph
(D), eligible producers on a farm that met the requirements of
paragraph (1) before the deadline described in paragraph (4)(A)
and are eligible to receive, a disaster assistance payment
under this section for a production loss during the 2008 crop
year shall be eligible to receive an amount equal to the
greater of--
``(i) the amount that would have been calculated under
subparagraph (B) if the eligible producers on the farm had
paid the appropriate fee under that subparagraph; or
``(ii) the amount that would have been calculated under
subparagraph (A) of subsection (b)(3) if--
``(I) in clause (i) of that subparagraph, `120
percent' is substituted for `115 percent'; and
``(II) in clause (ii) of that subparagraph, `125'
is substituted for `120 percent'.
``(D) Limitation.--For amounts made available under this
paragraph, the Secretary may make such adjustments as are
necessary to ensure that no producer receives a payment under
this paragraph for an amount in excess of the assistance
received by a similarly situated producer that had purchased
the same or higher level of crop insurance prior to the date of
enactment of this paragraph.
``(E) Authority of the secretary.--The Secretary may
provide such additional assistance as the Secretary considers
appropriate to provide equitable treatment for eligible
producers on a farm that suffered production losses in the 2008
crop year that result in multiyear production losses, as
determined by the Secretary.
``(F) Lack of access.--Notwithstanding any other provision
of this section, the Secretary may provide assistance under
this section to eligible producers on a farm that--
``(i) suffered a production loss due to a natural cause
during the 2008 crop year; and
``(ii) as determined by the Secretary--
``(I)(aa) except as provided in item (bb), lack
access to a policy or plan of insurance under subtitle
A; or
``(bb) do not qualify for a written agreement
because 1 or more farming practices, which the
Secretary has determined are good farming practices, of
the eligible producers on the farm differ significantly
from the farming practices used by producers of the
same crop in other regions of the United States; and
``(II) are not eligible for the noninsured crop
disaster assistance program established by section 196
of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7333).''.
(b) Trade Act of 1974.--Section 901(g) of the Trade Act of 1974 (19
U.S.C. 2497(g)) is amended by adding at the end the following:
``(7) 2008 transition assistance.--
``(A) In general.--Eligible producers on a farm described
in subparagraph (A) of paragraph (4) that failed to timely pay
the appropriate fee described in that subparagraph shall be
eligible for assistance under this section in accordance with
subparagraph (B) if the eligible producers on the farm--
``(i) pay the appropriate fee described in paragraph
(4)(A) not later than 90 days after the date of enactment
of this paragraph; and
``(ii)(I) in the case of each insurable commodity of
the eligible producers on the farm, excluding grazing land,
agree to obtain a policy or plan of insurance under the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)
(excluding a crop insurance pilot program under that Act)
for the next insurance year for which crop insurance is
available to the eligible producers on the farm at a level
of coverage equal to 70 percent or more of the recorded or
appraised average yield indemnified at 100 percent of the
expected market price, or an equivalent coverage; and
``(II) in the case of each noninsurable commodity of
the eligible producers on the farm, agree to file the
required paperwork, and pay the administrative fee by the
applicable State filing deadline, for the noninsured crop
assistance program for the next year for which a policy is
available.
``(B) Amount of assistance.--Eligible producers on a farm
that meet the requirements of subparagraph (A) shall be
eligible to receive assistance under this section as if the
eligible producers on the farm--
``(i) in the case of each insurable commodity of the
eligible producers on the farm, had obtained a policy or
plan of insurance for the 2008 crop year at a level of
coverage not to exceed 70 percent or more of the recorded
or appraised average yield indemnified at 100 percent of
the expected market price, or an equivalent coverage; and
``(ii) in the case of each noninsurable commodity of
the eligible producers on the farm, had filed the required
paperwork, and paid the administrative fee by the
applicable State filing deadline, for the noninsured crop
assistance program for the 2008 crop year, except that in
determining the level of coverage, the Secretary shall use
70 percent of the applicable yield.
``(C) Equitable relief.--Except as provided in subparagraph
(D), eligible producers on a farm that met the requirements of
paragraph (1) before the deadline described in paragraph (4)(A)
and are eligible to receive, a disaster assistance payment
under this section for a production loss during the 2008 crop
year shall be eligible to receive an amount equal to the
greater of--
``(i) the amount that would have been calculated under
subparagraph (B) if the eligible producers on the farm had
paid the appropriate fee under that subparagraph; or
``(ii) the amount that would have been calculated under
subparagraph (A) of subsection (b)(3) if--
``(I) in clause (i) of that subparagraph, `120
percent' is substituted for `115 percent'; and
``(II) in clause (ii) of that subparagraph, `125'
is substituted for `120 percent'.
``(D) Limitation.--For amounts made available under this
paragraph, the Secretary may make such adjustments as are
necessary to ensure that no producer receives a payment under
this paragraph for an amount in excess of the assistance
received by a similarly situated producer that had purchased
the same or higher level of crop insurance prior to the date of
enactment of this paragraph.
``(E) Authority of the secretary.--The Secretary may
provide such additional assistance as the Secretary considers
appropriate to provide equitable treatment for eligible
producers on a farm that suffered production losses in the 2008
crop year that result in multiyear production losses, as
determined by the Secretary.
``(F) Lack of access.--Notwithstanding any other provision
of this section, the Secretary may provide assistance under
this section to eligible producers on a farm that--
``(i) suffered a production loss due to a natural cause
during the 2008 crop year; and
``(ii) as determined by the Secretary--
``(I)(aa) except as provided in item (bb), lack
access to a policy or plan of insurance under subtitle
A; or
``(bb) do not qualify for a written agreement
because 1 or more farming practices, which the
Secretary has determined are good farming practices, of
the eligible producers on the farm differ significantly
from the farming practices used by producers of the
same crop in other regions of the United States; and
``(II) are not eligible for the noninsured crop
disaster assistance program established by section 196
of the Federal Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7333).''.
(c) Farm Operating Loans.--
(1) In general.--For the principal amount of direct farm
operating loans under section 311 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1941), $173,367,000.
(2) Direct farm operating loans.--For the cost of direct farm
operating loans, including the cost of modifying loans, as defined
in section 502 of the Congressional Budget Act of 1974 (2 U.S.C.
661a), $20,440,000.
(d) 2008 Aquaculture Assistance.--
(1) Definitions.--In this subsection:
(A) Eligible aquaculture producer.--The term ``eligible
aquaculture producer'' means an aquaculture producer that
during the 2008 calendar year, as determined by the Secretary--
(i) produced an aquaculture species for which feed
costs represented a substantial percentage of the input
costs of the aquaculture operation; and
(ii) experienced a substantial price increase of feed
costs above the previous 5-year average.
(B) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(2) Grant program.--
(A) In general.--Of the funds of the Commodity Credit
Corporation, the Secretary shall use not more than $50,000,000,
to remain available until September 30, 2010, to carry out a
program of grants to States to assist eligible aquaculture
producers for losses associated with high feed input costs
during the 2008 calendar year.
(B) Notification.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall notify the State
department of agriculture (or similar entity) in each State of
the availability of funds to assist eligible aquaculture
producers, including such terms as determined by the Secretary
to be necessary for the equitable treatment of eligible
aquaculture producers.
(C) Provision of grants.--
(i) In general.--The Secretary shall make grants to
States under this subsection on a pro rata basis based on
the amount of aquaculture feed used in each State during
the 2007 calendar year, as determined by the Secretary.
(ii) Timing.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall make grants to
States to provide assistance under this subsection.
(D) Requirements.--The Secretary shall make grants under
this subsection only to States that demonstrate to the
satisfaction of the Secretary that the State will--
(i) use grant funds to assist eligible aquaculture
producers;
(ii) provide assistance to eligible aquaculture
producers not later than 60 days after the date on which
the State receives grant funds; and
(iii) not later than 30 days after the date on which
the State provides assistance to eligible aquaculture
producers, submit to the Secretary a report that
describes--
(I) the manner in which the State provided
assistance;
(II) the amounts of assistance provided per species
of aquaculture; and
(III) the process by which the State determined the
levels of assistance to eligible aquaculture producers.
(3) Reduction in payments.--An eligible aquaculture producer
that receives assistance under this subsection shall not be
eligible to receive any other assistance under the supplemental
agricultural disaster assistance program established under section
531 of the Federal Crop Insurance Act (7 U.S.C. 1531) and section
901 of the Trade Act of 1974 (19 U.S.C. 2497) for any losses in
2008 relating to the same species of aquaculture.
(4) Report to congress.--Not later than 180 days after the date
of enactment of this Act, the Secretary shall submit to the
appropriate committees of Congress a report that--
(A) describes in detail the manner in which this subsection
has been carried out; and
(B) includes the information reported to the Secretary
under paragraph (2)(D)(iii).
Sec. 103. For fiscal years 2009 and 2010, in the case of each
program established or amended by the Food, Conservation, and Energy
Act of 2008 (Public Law 110-246), other than by title I of such Act,
that is authorized or required to be carried out using funds of the
Commodity Credit Corporation--
(1) such funds shall be available for the purpose of covering
salaries and related administrative expenses, including technical
assistance, associated with the implementation of the program,
without regard to the limitation on the total amount of allotments
and fund transfers contained in section 11 of the Commodity Credit
Corporation Charter Act (15 U.S.C. 714i); and
(2) the use of such funds for such purpose shall not be
considered to be a fund transfer or allotment for purposes of
applying the limitation on the total amount of allotments and fund
transfers contained in such section.
Sec. 104. In addition to other available funds, of the funds made
available to the Rural Development mission area in this title, not more
than 3 percent of the funds can be used for administrative costs to
carry out loan, loan guarantee and grant activities funded in this
title, which shall be transferred to and merged with the appropriation
for ``Rural Development, Salaries and Expenses'': Provided, That of
this amount $1,750,000 shall be committed to agency projects associated
with maintaining the compliance, safety, and soundness of the portfolio
of loans guaranteed through the section 502 guaranteed loan program.
Sec. 105. Of the amounts appropriated in this title to the ``Rural
Housing Service, Rural Community Facilities Program Account'', the
``Rural Business-Cooperative Service, Rural Business Program Account'',
and the "Rural Utilities Service, Rural Water and Waste Disposal
Program Account'', at least 10 percent shall be allocated for
assistance in persistent poverty counties: Provided, That for the
purposes of this section, the term ``persistent poverty counties''
means any county that has had 20 percent or more of its population
living in poverty over the past 30 years, as measured by the 1980,
1990, and 2000 decennial censuses.
TITLE II--COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES
DEPARTMENT OF COMMERCE
Economic Development Administration
economic development assistance programs
For an additional amount for ``Economic Development Assistance
Programs'', $150,000,000: Provided, That $50,000,000 shall be for
economic adjustment assistance as authorized by section 209 of the
Public Works and Economic Development Act of 1965, as amended (42
U.S.C. 3149): Provided further, That in allocating the funds provided
in the previous proviso, the Secretary of Commerce shall give priority
consideration to areas of the Nation that have experienced sudden and
severe economic dislocation and job loss due to corporate
restructuring: Provided further, That not to exceed 2 percent of the
funds provided under this heading may be transferred to and merged with
the appropriation for ``Salaries and Expenses'' for purposes of program
administration and oversight: Provided further, That up to $50,000,000
of the funds provided under this heading may be transferred to
federally authorized regional economic development commissions.
Bureau of the Census
periodic censuses and programs
For an additional amount for ``Periodic Censuses and Programs'',
$1,000,000,000.
National Telecommunications and Information Administration
broadband technology opportunities program
For an amount for ``Broadband Technology Opportunities Program'',
$4,700,000,000: Provided, That of the funds provided under this
heading, not less than $4,350,000,000 shall be expended pursuant to
division B of this Act, of which: not less than $200,000,000 shall be
available for competitive grants for expanding public computer center
capacity, including at community colleges and public libraries; not
less than $250,000,000 shall be available for competitive grants for
innovative programs to encourage sustainable adoption of broadband
service; and $10,000,000 shall be transferred to ``Department of
Commerce, Office of Inspector General'' for the purposes of audits and
oversight of funds provided under this heading and such funds shall
remain available until expended: Provided further, That of the funds
provided under this heading, up to $350,000,000 may be expended
pursuant to Public Law 110-385 (47 U.S.C. 1301 note) and for the
purposes of developing and maintaining a broadband inventory map
pursuant to division B of this Act: Provided further, That of the funds
provided under this heading, amounts deemed necessary and appropriate
by the Secretary of Commerce, in consultation with the Federal
Communications Commission (FCC), may be transferred to the FCC for the
purposes of developing a national broadband plan or for carrying out
any other FCC responsibilities pursuant to division B of this Act, and
only if the Committees on Appropriations of the House and the Senate
are notified not less than 15 days in advance of the transfer of such
funds: Provided further, That not more than 3 percent of funds provided
under this heading may be used for administrative costs, and this
limitation shall apply to funds which may be transferred to the FCC.
digital-to-analog converter box program
For an amount for ``Digital-to-Analog Converter Box Program'',
$650,000,000, for additional coupons and related activities under the
program implemented under section 3005 of the Digital Television
Transition and Public Safety Act of 2005: Provided, That of the amounts
provided under this heading, $90,000,000 may be for education and
outreach, including grants to organizations for programs to educate
vulnerable populations, including senior citizens, minority
communities, people with disabilities, low-income individuals, and
people living in rural areas, about the transition and to provide one-
on-one assistance to vulnerable populations, including help with
converter box installation: Provided further, That the amounts provided
in the previous proviso may be transferred to the Federal
Communications Commission (FCC) if deemed necessary and appropriate by
the Secretary of Commerce in consultation with the FCC, and only if the
Committees on Appropriations of the House and the Senate are notified
not less than 5 days in advance of transfer of such funds.
National Institute of Standards and Technology
scientific and technical research and services
For an additional amount for ``Scientific and Technical Research
and Services'', $220,000,000.
construction of research facilities
For an additional amount for ``Construction of Research
Facilities'', $360,000,000, of which $180,000,000 shall be for a
competitive construction grant program for research science buildings.
National Oceanic and Atmospheric Administration
operations, research, and facilities
For an additional amount for ``Operations, Research, and
Facilities'', $230,000,000.
procurement, acquisition and construction
For an additional amount for ``Procurement, Acquisition and
Construction'', $600,000,000.
Office of Inspector General
For an additional amount for ``Office of Inspector General'',
$6,000,000, to remain available until September 30, 2013.
DEPARTMENT OF JUSTICE
General Administration
Office of Inspector General
For an additional amount for ``Office of Inspector General'',
$2,000,000, to remain available until September 30, 2013.
State and Local Law Enforcement Activities
Office on Violence Against Women
violence against women prevention and prosecution programs
For an additional amount for ``Violence Against Women Prevention
and Prosecution Programs'', $225,000,000 for grants to combat violence
against women, as authorized by part T of the Omnibus Crime Control and
Safe Streets Act of 1968 (42 U.S.C. 3796gg et seq.): Provided, That,
$50,000,000 shall be for transitional housing assistance grants for
victims of domestic violence, stalking or sexual assault as authorized
by section 40299 of the Violent Crime Control and Law Enforcement Act
of 1994 (Public Law 103-322).
Office of Justice Programs
state and local law enforcement assistance
For an additional amount for ``State and Local Law Enforcement
Assistance'', $2,000,000,000, for the Edward Byrne Memorial Justice
Assistance Grant program as authorized by subpart 1 of part E of title
I of the Omnibus Crime Control and Safe Streets Acts of 1968 (``1968
Act''), (except that section 1001(c), and the special rules for Puerto
Rico under section 505(g), of the 1968 Act, shall not apply for
purposes of this Act).
For an additional amount for ``State and Local Law Enforcement
Assistance'', $225,000,000, for competitive grants to improve the
functioning of the criminal justice system, to assist victims of crime
(other than compensation), and youth mentoring grants.
For an additional amount for ``State and Local Law Enforcement
Assistance'', $40,000,000, for competitive grants to provide assistance
and equipment to local law enforcement along the Southern border and in
High-Intensity Drug Trafficking Areas to combat criminal narcotics
activity stemming from the Southern border, of which $10,000,000 shall
be transferred to ``Bureau of Alcohol, Tobacco, Firearms and
Explosives, Salaries and Expenses'' for the ATF Project Gunrunner.
For an additional amount for ``State and Local Law Enforcement
Assistance'', $225,000,000, for assistance to Indian tribes,
notwithstanding Public Law 108-199, division B, title I, section
112(a)(1) (118 Stat. 62), which shall be available for grants under
section 20109 of subtitle A of title II of the Violent Crime Control
and Law Enforcement Act of 1994 (Public Law 103-322).
For an additional amount for ``State and Local Law Enforcement
Assistance'', $100,000,000, to be distributed by the Office for Victims
of Crime in accordance with section 1402(d)(4) of the Victims of Crime
Act of 1984 (Public Law 98-473).
For an additional amount for ``State and Local Law Enforcement
Assistance'', $125,000,000, for assistance to law enforcement in rural
States and rural areas, to prevent and combat crime, especially drug-
related crime.
For an additional amount for ``State and Local Law Enforcement
Assistance'', $50,000,000, for Internet Crimes Against Children (ICAC)
initiatives.
Community Oriented Policing Services
For an additional amount for ``Community Oriented Policing
Services'', for grants under section 1701 of title I of the 1968
Omnibus Crime Control and Safe Streets Act (42 U.S.C. 3796dd) for
hiring and rehiring of additional career law enforcement officers under
part Q of such title, notwithstanding subsection (i) of such section,
$1,000,000,000.
Salaries and Expenses
For an additional amount, not elsewhere specified in this title,
for management and administration and oversight of programs within the
Office on Violence Against Women, the Office of Justice Programs, and
the Community Oriented Policing Services Office, $10,000,000.
SCIENCE
National Aeronautics and Space Administration
science
For an additional amount for ``Science'', $400,000,000.
aeronautics
For an additional amount for ``Aeronautics'', $150,000,000.
exploration
For an additional amount for ``Exploration'', $400,000,000.
cross agency support
For an additional amount for ``Cross Agency Support'', $50,000,000.
office of inspector general
For an additional amount for ``Office of Inspector General'',
$2,000,000, to remain available until September 30, 2013.
National Science Foundation
research and related activities
For an additional amount for ``Research and Related Activities'',
$2,500,000,000: Provided, That $300,000,000 shall be available solely
for the Major Research Instrumentation program and $200,000,000 shall
be for activities authorized by title II of Public Law 100-570 for
academic research facilities modernization.
education and human resources
For an additional amount for ``Education and Human Resources'',
$100,000,000.
major research equipment and facilities construction
For an additional amount for ``Major Research Equipment and
Facilities Construction'', $400,000,000.
office of inspector general
For an additional amount for ``Office of Inspector General'',
$2,000,000, to remain available until September 30, 2013.
GENERAL PROVISION--THIS TITLE
Sec. 201. Sections 1701(g) and 1704(c) of the Omnibus Crime Control
and Safe Streets Act of 1968 (42 U.S.C. 3796dd(g) and 3796dd-3(c))
shall not apply with respect to funds appropriated in this or any other
Act making appropriations for fiscal year 2009 or 2010 for Community
Oriented Policing Services authorized under part Q of such Act of 1968.
TITLE III--DEPARTMENT OF DEFENSE
OPERATION AND MAINTENANCE
Operation and Maintenance, Army
For an additional amount for ``Operation and Maintenance, Army'',
$1,474,525,000, to remain available for obligation until September 30,
2010, to improve, repair and modernize Department of Defense
facilities, restore and modernize real property to include barracks,
and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Navy
For an additional amount for ``Operation and Maintenance, Navy'',
$657,051,000, to remain available for obligation until September 30,
2010, to improve, repair and modernize Department of Defense
facilities, restore and modernize real property to include barracks,
and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Marine Corps
For an additional amount for ``Operation and Maintenance, Marine
Corps'', $113,865,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Air Force
For an additional amount for ``Operation and Maintenance, Air
Force'', $1,095,959,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Army Reserve
For an additional amount for ``Operation and Maintenance, Army
Reserve'', $98,269,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Navy Reserve
For an additional amount for ``Operation and Maintenance, Navy
Reserve'', $55,083,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Marine Corps Reserve
For an additional amount for ``Operation and Maintenance, Marine
Corps Reserve'', $39,909,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Air Force Reserve
For an additional amount for ``Operation and Maintenance, Air Force
Reserve'', $13,187,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Army National Guard
For an additional amount for ``Operation and Maintenance, Army
National Guard'', $266,304,000, to remain available for obligation
until September 30, 2010, to improve, repair and modernize Department
of Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
Operation and Maintenance, Air National Guard
For an additional amount for ``Operation and Maintenance, Air
National Guard'', $25,848,000, to remain available for obligation until
September 30, 2010, to improve, repair and modernize Department of
Defense facilities, restore and modernize real property to include
barracks, and invest in the energy efficiency of Department of Defense
facilities.
RESEARCH, DEVELOPMENT, TEST AND EVALUATION
Research, Development, Test and Evaluation, Army
For an additional amount for ``Research, Development, Test and
Evaluation, Army'', $75,000,000, to remain available for obligation
until September 30, 2010.
Research, Development, Test and Evaluation, Navy
For an additional amount for ``Research, Development, Test and
Evaluation, Navy'', $75,000,000, to remain available for obligation
until September 30, 2010.
Research, Development, Test and Evaluation, Air Force
For an additional amount for ``Research, Development, Test and
Evaluation, Air Force'', $75,000,000, to remain available for
obligation until September 30, 2010.
Research, Development, Test and Evaluation, Defense-Wide
For an additional amount for ``Research, Development, Test and
Evaluation, Defense-Wide'', $75,000,000, to remain available for
obligation until September 30, 2010.
OTHER DEPARTMENT OF DEFENSE PROGRAMS
Defense Health Program
For an additional amount for ``Defense Health Program'',
$400,000,000 for operation and maintenance, to remain available for
obligation until September 30, 2010, to improve, repair and modernize
military medical facilities, and invest in the energy efficiency of
military medical facilities.
Office of the Inspector General
For an additional amount for ``Office of the Inspector General'',
$15,000,000 for operation and maintenance, to remain available for
obligation until September 30, 2011.
TITLE IV--ENERGY AND WATER DEVELOPMENT
DEPARTMENT OF DEFENSE--CIVIL
Department of the Army
Corps of Engineers--Civil
investigations
For an additional amount for ``Investigations'', $25,000,000:
Provided, That funds provided under this heading in this title shall
only be used for programs, projects or activities that heretofore or
hereafter receive funds provided in Acts making appropriations
available for Energy and Water Development: Provided further, That
funds provided under this heading in this title shall be used for
programs, projects or activities or elements of programs, projects or
activities that can be completed within the funds made available in
that account and that will not require new budget authority to
complete: Provided further, That for projects that are being completed
with funds appropriated in this Act that would otherwise be expired for
obligation, expired funds appropriated in this Act may be used to pay
the cost of associated supervision, inspection, overhead, engineering
and design on those projects and on subsequent claims, if any: Provided
further, That the Secretary of the Army shall submit a quarterly report
to the Committees on Appropriations of the House of Representatives and
the Senate detailing the allocation, obligation and expenditures of
these funds, beginning not later than 45 days after enactment of this
Act: Provided further, That the Secretary shall have unlimited
reprogramming authority for these funds provided under this heading.
construction
For an additional amount for ``Construction'', $2,000,000,000:
Provided, That not less than $200,000,000 of the funds provided shall
be for water-related environmental infrastructure assistance: Provided
further, That section 102 of Public Law 109-103 (33 U.S.C. 2221) shall
not apply to funds provided in this title: Provided further, That
notwithstanding any other provision of law, funds provided in this
paragraph shall not be cost shared with the Inland Waterways Trust Fund
as authorized in Public Law 99-662: Provided further, That funds
provided under this heading in this title shall only be used for
programs, projects or activities that heretofore or hereafter receive
funds provided in Acts making appropriations available for Energy and
Water Development: Provided further, That funds provided under this
heading in this title shall be used for programs, projects or
activities or elements of programs, projects or activities that can be
completed within the funds made available in that account and that will
not require new budget authority to complete: Provided further, That
the limitation concerning total project costs in section 902 of the
Water Resources Development Act of 1986, as amended (33 U.S.C. 2280),
shall not apply during fiscal year 2009 to any project that received
funds provided in this title: Provided further, That funds appropriated
under this heading may be used by the Secretary of the Army, acting
through the Chief of Engineers, to undertake work authorized to be
carried out in accordance with section 14 of the Flood Control Act of
1946 (33 U.S.C. 701r); section 205 of the Flood Control Act of 1948 (33
U.S.C. 701s); section 206 of the Water Resources Development Act of
1996 (33 U.S.C. 2330); or section 1135 of the Water Resources
Development Act of 1986 (33 U.S.C. 2309a), notwithstanding the program
cost limitations set forth in those sections: Provided further, That
for projects that are being completed with funds appropriated in this
Act that would otherwise be expired for obligation, expired funds
appropriated in this Act may be used to pay the cost of associated
supervision, inspection, overhead, engineering and design on those
projects and on subsequent claims, if any: Provided further, That the
Secretary of the Army shall submit a quarterly report to the Committees
on Appropriations of the House of Representatives and the Senate
detailing the allocation, obligation and expenditures of these funds,
beginning not later than 45 days after enactment of this Act: Provided
further, That the Secretary shall have unlimited reprogramming
authority for these funds provided under this heading.
mississippi river and tributaries
For an additional amount for ``Mississippi River and Tributaries'',
$375,000,000: Provided, That funds provided under this heading in this
title shall only be used for programs, projects or activities that
heretofore or hereafter receive funds provided in Acts making
appropriations available for Energy and Water Development: Provided
further, That funds provided under this heading in this title shall be
used for programs, projects or activities or elements of programs,
projects or activities that can be completed within the funds made
available in that account and that will not require new budget
authority to complete: Provided further, That the limitation concerning
total project costs in section 902 of the Water Resources Development
Act of 1986, as amended (33 U.S.C. 2280), shall not apply during fiscal
year 2009 to any project that received funds provided in this title:
Provided further, That for projects that are being completed with funds
appropriated in this Act that would otherwise be expired for
obligation, expired funds appropriated in this Act may be used to pay
the cost of associated supervision, inspection, overhead, engineering
and design on those projects and on subsequent claims, if any: Provided
further, That the Secretary of the Army shall submit a quarterly report
to the Committees on Appropriations of the House of Representatives and
the Senate detailing the allocation, obligation and expenditures of
these funds, beginning not later than 45 days after enactment of this
Act: Provided further, That the Secretary shall have unlimited
reprogramming authority for these funds provided under this heading.
operation and maintenance
For an additional amount for ``Operation and Maintenance'',
$2,075,000,000: Provided, That funds provided under this heading in
this title shall only be used for programs, projects or activities that
heretofore or hereafter receive funds provided in Acts making
appropriations available for Energy and Water Development: Provided
further, That funds provided under this heading in this title shall be
used for programs, projects or activities or elements of programs,
projects or activities that can be completed within the funds made
available in that account and that will not require new budget
authority to complete: Provided further, That section 9006 of Public
Law 110-114 shall not apply to funds provided in this title: Provided
further, That for projects that are being completed with funds
appropriated in this Act that would otherwise be expired for
obligation, expired funds appropriated in this Act may be used to pay
the cost of associated supervision, inspection, overhead, engineering
and design on those projects and on subsequent claims, if any: Provided
further, That the Secretary of the Army shall submit a quarterly report
to the Committees on Appropriations of the House of Representatives and
the Senate detailing the allocation, obligation and expenditures of
these funds, beginning not later than 45 days after enactment of this
Act: Provided further, That the Secretary shall have unlimited
reprogramming authority for these funds provided under this heading.
regulatory program
For an additional amount for ``Regulatory Program'', $25,000,000.
formerly utilized sites remedial action program
For an additional amount for ``Formerly Utilized Sites Remedial
Action Program'', $100,000,000: Provided, That funds provided under
this heading in this title shall be used for programs, projects or
activities or elements of programs, projects or activities that can be
completed within the funds made available in that account and that will
not require new budget authority to complete: Provided further, That
for projects that are being completed with funds appropriated in this
Act that would otherwise be expired for obligation, expired funds
appropriated in this Act may be used to pay the cost of associated
supervision, inspection, overhead, engineering and design on those
projects and on subsequent claims, if any: Provided further, That the
Secretary of the Army shall submit a quarterly report to the Committees
on Appropriations of the House of Representatives and the Senate
detailing the allocation, obligation and expenditures of these funds,
beginning not later than 45 days after enactment of this Act: Provided
further, That the Secretary shall have unlimited reprogramming
authority for these funds provided under this heading.
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
water and related resources
For an additional amount for ``Water and Related Resources'',
$1,000,000,000: Provided, That of the amount appropriated under this
heading, not less than $126,000,000 shall be used for water reclamation
and reuse projects authorized under title XVI of Public Law 102-575:
Provided further, That funds provided in this Act shall be used for
elements of projects, programs or activities that can be completed
within these funding amounts and not create budgetary obligations in
future fiscal years: Provided further, That $50,000,000 of the funds
provided under this heading may be transferred to the Department of the
Interior for programs, projects and activities authorized by the
Central Utah Project Completion Act (titles II-V of Public Law 102-
575): Provided further, That $50,000,000 of the funds provided under
this heading may be used for programs, projects, and activities
authorized by the California Bay-Delta Restoration Act (Public Law 108-
361): Provided further, That not less than $60,000,000 of the funds
provided under this heading shall be used for rural water projects and
shall be expended primarily on water intake and treatment facilities of
such projects: Provided further, That not less than $10,000,000 of the
funds provided under this heading shall be used for a bureau-wide
inspection of canals program in urbanized areas: Provided further, That
the costs of extraordinary maintenance and replacement activities
carried out with funds provided in this Act shall be repaid pursuant to
existing authority, except the length of repayment period shall be as
determined by the Commissioner, but in no case shall the repayment
period exceed 50 years and the repayment shall include interest, at a
rate determined by the Secretary of the Treasury as of the beginning of
the fiscal year in which the work is commenced, on the basis of average
market yields on outstanding marketable obligations of the United
States with the remaining periods of maturity comparable to the
applicable reimbursement period of the project adjusted to the nearest
one-eighth of 1 percent on the unamortized balance of any portion of
the loan: Provided further, That for projects that are being completed
with funds appropriated in this Act that would otherwise be expired for
obligation, expired funds appropriated in this Act may be used to pay
the cost of associated supervision, inspection, overhead, engineering
and design on those projects and on subsequent claims, if any: Provided
further, That the Secretary of the Interior shall submit a quarterly
report to the Committees on Appropriations of the House of
Representatives and the Senate detailing the allocation, obligation and
expenditures of these funds, beginning not later than 45 days after
enactment of this Act: Provided further, That the Secretary shall have
unlimited reprogramming authority for these funds provided under this
heading.
DEPARTMENT OF ENERGY
ENERGY PROGRAMS
Energy Efficiency and Renewable Energy
For an additional amount for ``Energy Efficiency and Renewable
Energy'', $16,800,000,000: Provided, That $3,200,000,000 shall be
available for Energy Efficiency and Conservation Block Grants for
implementation of programs authorized under subtitle E of title V of
the Energy Independence and Security Act of 2007 (42 U.S.C. 17151 et
seq.), of which $2,800,000,000 is available through the formula in
subtitle E: Provided further, That the Secretary may use the most
recent and accurate population data available to satisfy the
requirements of section 543(b) of the Energy Independence and Security
Act of 2007: Provided further, That the remaining $400,000,000 shall be
awarded on a competitive basis: Provided further, That $5,000,000,000
shall be for the Weatherization Assistance Program under part A of
title IV of the Energy Conservation and Production Act (42 U.S.C. 6861
et seq.): Provided further, That $3,100,000,000 shall be for the State
Energy Program authorized under part D of title III of the Energy
Policy and Conservation Act (42 U.S.C. 6321): Provided further, That
$2,000,000,000 shall be available for grants for the manufacturing of
advanced batteries and components and the Secretary shall provide
facility funding awards under this section to manufacturers of advanced
battery systems and vehicle batteries that are produced in the United
States, including advanced lithium ion batteries, hybrid electrical
systems, component manufacturers, and software designers: Provided
further, That notwithstanding section 3304 of title 5, United States
Code, and without regard to the provisions of sections 3309 through
3318 of such title 5, the Secretary of Energy, upon a determination
that there is a severe shortage of candidates or a critical hiring need
for particular positions, may from within the funds provided, recruit
and directly appoint highly qualified individuals into the competitive
service: Provided further, That such authority shall not apply to
positions in the Excepted Service or the Senior Executive Service:
Provided further, That any action authorized herein shall be consistent
with the merit principles of section 2301 of such title 5, and the
Department shall comply with the public notice requirements of section
3327 of such title 5.
Electricity Delivery and Energy Reliability
For an additional amount for ``Electricity Delivery and Energy
Reliability,'' $4,500,000,000: Provided, That funds shall be available
for expenses necessary for electricity delivery and energy reliability
activities to modernize the electric grid, to include demand responsive
equipment, enhance security and reliability of the energy
infrastructure, energy storage research, development, demonstration and
deployment, and facilitate recovery from disruptions to the energy
supply, and for implementation of programs authorized under title XIII
of the Energy Independence and Security Act of 2007 (42 U.S.C. 17381 et
seq.): Provided further, That $100,000,000 shall be available for
worker training activities: Provided further, That notwithstanding
section 3304 of title 5, United States Code, and without regard to the
provisions of sections 3309 through 3318 of such title 5, the Secretary
of Energy, upon a determination that there is a severe shortage of
candidates or a critical hiring need for particular positions, may from
within the funds provided, recruit and directly appoint highly
qualified individuals into the competitive service: Provided further,
That such authority shall not apply to positions in the Excepted
Service or the Senior Executive Service: Provided further, That any
action authorized herein shall be consistent with the merit principles
of section 2301 of such title 5, and the Department shall comply with
the public notice requirements of section 3327 of such title 5:
Provided further, That for the purpose of facilitating the development
of regional transmission plans, the Office of Electricity Delivery and
Energy Reliability within the Department of Energy is provided
$80,000,000 within the available funds to conduct a resource assessment
and an analysis of future demand and transmission requirements after
consultation with the Federal Energy Regulatory Commission: Provided
further, That the Office of Electricity Delivery and Energy Reliability
in coordination with the Federal Energy Regulatory Commission will
provide technical assistance to the North American Electric Reliability
Corporation, the regional reliability entities, the States, and other
transmission owners and operators for the formation of interconnection-
based transmission plans for the Eastern and Western Interconnections
and ERCOT: Provided further, That such assistance may include modeling,
support to regions and States for the development of coordinated State
electricity policies, programs, laws, and regulations: Provided
further, That $10,000,000 is provided to implement section 1305 of
Public Law 110-140: Provided further, That the Secretary of Energy may
use or transfer amounts provided under this heading to carry out new
authority for transmission improvements, if such authority is enacted
in any subsequent Act, consistent with existing fiscal management
practices and procedures.
Fossil Energy Research and Development
For an additional amount for ``Fossil Energy Research and
Development'', $3,400,000,000.
Non-Defense Environmental Cleanup
For an additional amount for ``Non-Defense Environmental Cleanup'',
$483,000,000.
Uranium Enrichment Decontamination and Decommissioning Fund
For an additional amount for ``Uranium Enrichment Decontamination
and Decommissioning Fund'', $390,000,000, of which $70,000,000 shall be
available in accordance with title X, subtitle A of the Energy Policy
Act of 1992.
Science
For an additional amount for ``Science'', $1,600,000,000.
Advanced Research Projects Agency--Energy
For the Advanced Research Projects Agency--Energy, $400,000,000, as
authorized under section 5012 of the America COMPETES Act (42 U.S.C.
16538).
Title 17--Innovative Technology Loan Guarantee Program
For an additional amount for the cost of guaranteed loans
authorized by section 1705 of the Energy Policy Act of 2005,
$6,000,000,000, available until expended, to pay the costs of
guarantees made under this section: Provided, That of the amount
provided for title XVII, $25,000,000 shall be used for administrative
expenses in carrying out the guaranteed loan program: Provided further,
That of the amounts provided for title XVII, $10,000,000 shall be
transferred to and available for administrative expenses for the
Advanced Technology Vehicles Manufacturing Loan Program.
Office of the Inspector General
For necessary expenses of the Office of the Inspector General in
carrying out the provisions of the Inspector General Act of 1978, as
amended, $15,000,000, to remain available until September 30, 2012.
ENVIRONMENTAL AND OTHER DEFENSE ACTIVITIES
Defense Environmental Cleanup
For an additional amount for ``Defense Environmental Cleanup,''
$5,127,000,000.
Construction, Rehabilitation, Operation, and Maintenance, Western Area
Power Administration
For carrying out the functions authorized by title III, section
302(a)(1)(E) of the Act of August 4, 1977 (42 U.S.C. 7152), and other
related activities including conservation and renewable resources
programs as authorized, $10,000,000, to remain available until
expended: Provided, That the Administrator shall establish such
personnel staffing levels as he deems necessary to economically and
efficiently complete the activities pursued under the authority granted
by section 402 of this Act: Provided further, That this appropriation
is non-reimbursable.
GENERAL PROVISIONS--THIS TITLE
Sec. 401. Bonneville Power Administration Borrowing Authority. For
the purposes of providing funds to assist in financing the
construction, acquisition, and replacement of the transmission system
of the Bonneville Power Administration and to implement the authority
of the Administrator of the Bonneville Power Administration under the
Pacific Northwest Electric Power Planning and Conservation Act (16
U.S.C. 839 et seq.), an additional $3,250,000,000 in borrowing
authority is made available under the Federal Columbia River
Transmission System Act (16 U.S.C. 838 et seq.), to remain outstanding
at any time.
Sec. 402. Western Area Power Administration Borrowing Authority.
The Hoover Power Plant Act of 1984 (Public Law 98-381) is amended by
adding at the end the following:
``TITLE III--BORROWING AUTHORITY
``SEC. 301. WESTERN AREA POWER ADMINISTRATION BORROWING AUTHORITY.
``(a) Definitions.--In this section:
``(1) Administrator.--The term `Administrator' means the
Administrator of the Western Area Power Administration.
``(2) Secretary.--The term `Secretary' means the Secretary of
the Treasury.
``(b) Authority.--
``(1) In general.--Notwithstanding any other provision of law,
subject to paragraphs (2) through (5)--
``(A) the Western Area Power Administration may borrow
funds from the Treasury; and
``(B) the Secretary shall, without further appropriation
and without fiscal year limitation, loan to the Western Area
Power Administration, on such terms as may be fixed by the
Administrator and the Secretary, such sums (not to exceed, in
the aggregate (including deferred interest), $3,250,000,000 in
outstanding repayable balances at any one time) as, in the
judgment of the Administrator, are from time to time required
for the purpose of--
``(i) constructing, financing, facilitating, planning,
operating, maintaining, or studying construction of new or
upgraded electric power transmission lines and related
facilities with at least one terminus within the area
served by the Western Area Power Administration; and
``(ii) delivering or facilitating the delivery of power
generated by renewable energy resources constructed or
reasonably expected to be constructed after the date of
enactment of this section.
``(2) Interest.--The rate of interest to be charged in
connection with any loan made pursuant to this subsection shall be
fixed by the Secretary, taking into consideration market yields on
outstanding marketable obligations of the United States of
comparable maturities as of the date of the loan.
``(3) Refinancing.--The Western Area Power Administration may
refinance loans taken pursuant to this section within the Treasury.
``(4) Participation.--The Administrator may permit other
entities to participate in the financing, construction and
ownership projects financed under this section.
``(5) Congressional review of disbursement.--Effective upon the
date of enactment of this section, the Administrator shall have the
authority to have utilized $1,750,000,000 at any one time. If the
Administrator seeks to borrow funds above $1,750,000,000, the funds
will be disbursed unless there is enacted, within 90 calendar days
of the first such request, a joint resolution that rescinds the
remainder of the balance of the borrowing authority provided in
this section.
``(c) Transmission Line and Related Facility Projects.--
``(1) In general.--For repayment purposes, each transmission
line and related facility project in which the Western Area Power
Administration participates pursuant to this section shall be
treated as separate and distinct from--
``(A) each other such project; and
``(B) all other Western Area Power Administration power and
transmission facilities.
``(2) Proceeds.--The Western Area Power Administration shall
apply the proceeds from the use of the transmission capacity from
an individual project under this section to the repayment of the
principal and interest of the loan from the Treasury attributable
to that project, after reserving such funds as the Western Area
Power Administration determines are necessary--
``(A) to pay for any ancillary services that are provided;
and
``(B) to meet the costs of operating and maintaining the
new project from which the revenues are derived.
``(3) Source of revenue.--Revenue from the use of projects
under this section shall be the only source of revenue for--
``(A) repayment of the associated loan for the project; and
``(B) payment of expenses for ancillary services and
operation and maintenance.
``(4) Limitation on authority.--Nothing in this section confers
on the Administrator any additional authority or obligation to
provide ancillary services to users of transmission facilities
developed under this section.
``(5) Treatment of certain revenues.--Revenue from ancillary
services provided by existing Federal power systems to users of
transmission projects funded pursuant to this section shall be
treated as revenue to the existing power system that provided the
ancillary services.
``(d) Certification.--
``(1) In general.--For each project in which the Western Area
Power Administration participates pursuant to this section, the
Administrator shall certify, prior to committing funds for any such
project, that--
``(A) the project is in the public interest;
``(B) the project will not adversely impact system
reliability or operations, or other statutory obligations; and
``(C) it is reasonable to expect that the proceeds from the
project shall be adequate to make repayment of the loan.
``(2) Forgiveness of balances.--
``(A) In general.--If, at the end of the useful life of a
project, there is a remaining balance owed to the Treasury
under this section, the balance shall be forgiven.
``(B) Unconstructed projects.--Funds expended to study
projects that are considered pursuant to this section but that
are not constructed shall be forgiven.
``(C) Notification.--The Administrator shall notify the
Secretary of such amounts as are to be forgiven under this
paragraph.
``(e) Public Processes.--
``(1) Policies and practices.--Prior to requesting any loans
under this section, the Administrator shall use a public process to
develop practices and policies that implement the authority granted
by this section.
``(2) Requests for interest.--In the course of selecting
potential projects to be funded under this section, the
Administrator shall seek Requests For Interest from entities
interested in identifying potential projects through one or more
notices published in the Federal Register.''
Sec. 403. Set-aside for Management and Oversight. Up to 0.5 percent
of each amount appropriated in this title may be used for the expenses
of management and oversight of the programs, grants, and activities
funded by such appropriation, and may be transferred by the head of the
Federal department or agency involved to any other appropriate account
within the department or agency for that purpose: Provided, That the
Secretary will provide a report to the Committees on Appropriations of
the House of Representatives and the Senate 30 days prior to the
transfer: Provided further, That funds set aside under this section
shall remain available for obligation until September 30, 2012.
Sec. 404. Technical Corrections to the Energy Independence and
Security Act of 2007. (a) Section 543(a) of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17153(a)) is amended--
(1) by redesignating paragraphs (2) through (4) as paragraphs
(3) through (5), respectively; and
(2) by striking paragraph (1) and inserting the following:
``(1) 34 percent to eligible units of local government--
alternative 1, in accordance with subsection (b);
``(2) 34 percent to eligible units of local government--
alternative 2, in accordance with subsection (b);''.
(b) Section 543(b) of the Energy Independence and Security Act of
2007 (42 U.S.C. 17153(b)) is amended by striking ``subsection (a)(1)''
and inserting ``subsection (a)(1) or (2)''.
(c) Section 548(a)(1) of the Energy Independence and Security Act
of 2007 (42 U.S.C. 17158(a)(1)) is amending by striking ``; provided''
and all that follows through ``541(3)(B)''.
Sec. 405. Amendments to Title XIII of the Energy Independence and
Security Act of 2007. Title XIII of the Energy Independence and
Security Act of 2007 (42 U.S.C. 17381 and following) is amended as
follows:
(1) By amending subparagraph (A) of section 1304(b)(3) to read
as follows:
``(A) In general.--In carrying out the initiative, the
Secretary shall provide financial support to smart grid
demonstration projects in urban, suburban, tribal, and rural
areas, including areas where electric system assets are
controlled by nonprofit entities and areas where electric
system assets are controlled by investor-owned utilities.''.
(2) By amending subparagraph (C) of section 1304(b)(3) to read
as follows:
``(C) Federal share of cost of technology investments.--The
Secretary shall provide to an electric utility described in
subparagraph (B) or to other parties financial assistance for
use in paying an amount equal to not more than 50 percent of
the cost of qualifying advanced grid technology investments
made by the electric utility or other party to carry out a
demonstration project.''.
(3) By inserting after section 1304(b)(3)(D) the following new
subparagraphs:
``(E) Availability of data.--The Secretary shall establish
and maintain a smart grid information clearinghouse in a timely
manner which will make data from smart grid demonstration
projects and other sources available to the public. As a
condition of receiving financial assistance under this
subsection, a utility or other participant in a smart grid
demonstration project shall provide such information as the
Secretary may require to become available through the smart
grid information clearinghouse in the form and within the
timeframes as directed by the Secretary. The Secretary shall
assure that business proprietary information and individual
customer information is not included in the information made
available through the clearinghouse.
``(F) Open protocols and standards.--The Secretary shall
require as a condition of receiving funding under this
subsection that demonstration projects utilize open protocols
and standards (including Internet-based protocols and
standards) if available and appropriate.''.
(4) By amending paragraph (2) of section 1304(c) to read as
follows:
``(2) to carry out subsection (b), such sums as may be
necessary.''.
(5) By amending subsection (a) of section 1306 by striking
``reimbursement of one-fifth (20 percent)'' and inserting ``grants
of up to one-half (50 percent)''.
(6) By striking the last sentence of subsection (b)(9) of
section 1306.
(7) By striking ``are eligible for'' in subsection (c)(1) of
section 1306 and inserting ``utilize''.
(8) By amending subsection (e) of section 1306 to read as
follows:
``(e) Procedures and Rules.--(1) The Secretary shall, within 60
days after the enactment of the American Recovery and Reinvestment Act
of 2009, by means of a notice of intent and subsequent solicitation of
grant proposals--
``(A) establish procedures by which applicants can obtain
grants of not more than one-half of their documented costs;
``(B) require as a condition of receiving funding under this
subsection that demonstration projects utilize open protocols and
standards (including Internet-based protocols and standards) if
available and appropriate;
``(C) establish procedures to ensure that there is no
duplication or multiple payment for the same investment or costs,
that the grant goes to the party making the actual expenditures for
the qualifying Smart Grid investments, and that the grants made
have a significant effect in encouraging and facilitating the
development of a smart grid;
``(D) establish procedures to ensure there will be public
records of grants made, recipients, and qualifying Smart Grid
investments which have received grants; and
``(E) establish procedures to provide advance payment of moneys
up to the full amount of the grant award.
``(2) The Secretary shall have discretion and exercise reasonable
judgment to deny grants for investments that do not qualify.''.
Sec. 406. Renewable Energy and Electric Power Transmission Loan
Guarantee Program. (a) Amendment.--Title XVII of the Energy Policy Act
of 2005 (42 U.S.C. 16511 et seq.) is amended by adding the following at
the end:
``SEC. 1705. TEMPORARY PROGRAM FOR RAPID DEPLOYMENT OF RENEWABLE ENERGY
AND ELECTRIC POWER TRANSMISSION PROJECTS.
``(a) In General.--Notwithstanding section 1703, the Secretary may
make guarantees under this section only for the following categories of
projects that commence construction not later than September 30, 2011:
``(1) Renewable energy systems, including incremental
hydropower, that generate electricity or thermal energy, and
facilities that manufacture related components.
``(2) Electric power transmission systems, including upgrading
and reconductoring projects.
``(3) Leading edge biofuel projects that will use technologies
performing at the pilot or demonstration scale that the Secretary
determines are likely to become commercial technologies and will
produce transportation fuels that substantially reduce life-cycle
greenhouse gas emissions compared to other transportation fuels.
``(b) Factors Relating to Electric Power Transmission Systems.--In
determining to make guarantees to projects described in subsection
(a)(2), the Secretary may consider the following factors:
``(1) The viability of the project without guarantees.
``(2) The availability of other Federal and State incentives.
``(3) The importance of the project in meeting reliability
needs.
``(4) The effect of the project in meeting a State or region's
environment (including climate change) and energy goals.
``(c) Wage Rate Requirements.--The Secretary shall require that
each recipient of support under this section provide reasonable
assurance that all laborers and mechanics employed in the performance
of the project for which the assistance is provided, including those
employed by contractors or subcontractors, will be paid wages at rates
not less than those prevailing on similar work in the locality as
determined by the Secretary of Labor in accordance with subchapter IV
of chapter 31 of part A of subtitle II of title 40, United States Code
(commonly referred to as the `Davis-Bacon Act').
``(d) Limitation.--Funding under this section for projects
described in subsection (a)(3) shall not exceed $500,000,000.
``(e) Sunset.--The authority to enter into guarantees under this
section shall expire on September 30, 2011.''.
(b) Table of Contents Amendment.--The table of contents for the
Energy Policy Act of 2005 is amended by inserting after the item
relating to section 1704 the following new item:
``Sec. 1705. Temporary program for rapid deployment of renewable energy
and electric power transmission projects.''.
Sec. 407. Weatherization Assistance Program Amendments. (a) Income
Level.--Section 412(7) of the Energy Conservation and Production Act
(42 U.S.C. 6862(7)) is amended by striking ``150 percent'' both places
it appears and inserting ``200 percent''.
(b) Assistance Level Per Dwelling Unit.--Section 415(c)(1) of the
Energy Conservation and Production Act (42 U.S.C. 6865(c)(1)) is
amended by striking ``$2,500'' and inserting ``$6,500''.
(c) Effective Use of Funds.--In providing funds made available by
this Act for the Weatherization Assistance Program, the Secretary may
encourage States to give priority to using such funds for the most
cost-effective efficiency activities, which may include insulation of
attics, if, in the Secretary's view, such use of funds would increase
the effectiveness of the program.
(d) Training and Technical Assistance.--Section 416 of the Energy
Conservation and Production Act (42 U.S.C. 6866) is amended by striking
``10 percent'' and inserting ``up to 20 percent''.
(e) Assistance for Previously Weatherized Dwelling Units.--Section
415(c)(2) of the Energy Conservation and Production Act (42 U.S.C.
6865(c)(2)) is amended by striking ``September 30, 1979'' and inserting
``September 30, 1994''.
Sec. 408. Technical Corrections to Public Utility Regulatory
Policies Act of 1978. (a) Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by
redesignating paragraph (16) relating to consideration of smart grid
investments (added by section 1307(a) of Public Law 110-140) as
paragraph (18) and by redesignating paragraph (17) relating to smart
grid information (added by section 1308(a) of Public Law 110-140) as
paragraph (19).
(b) Subsections (b) and (d) of section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) are each amended by
striking ``(17) through (18)'' in each place it appears and inserting
``(16) through (19)''.
Sec. 409. Renewable Electricity Transmission Study. In completing
the 2009 National Electric Transmission Congestion Study, the Secretary
of Energy shall include--
(1) an analysis of the significant potential sources of
renewable energy that are constrained in accessing appropriate
market areas by lack of adequate transmission capacity;
(2) an analysis of the reasons for failure to develop the
adequate transmission capacity;
(3) recommendations for achieving adequate transmission
capacity;
(4) an analysis of the extent to which legal challenges filed
at the State and Federal level are delaying the construction of
transmission necessary to access renewable energy; and
(5) an explanation of assumptions and projections made in the
Study, including--
(A) assumptions and projections relating to energy
efficiency improvements in each load center;
(B) assumptions and projections regarding the location and
type of projected new generation capacity; and
(C) assumptions and projections regarding projected
deployment of distributed generation infrastructure.
Sec. 410. Additional State Energy Grants. (a) In General.--Amounts
appropriated under the heading ``Department of Energy--Energy
Programs--Energy Efficiency and Renewable Energy'' in this title shall
be available to the Secretary of Energy for making additional grants
under part D of title III of the Energy Policy and Conservation Act (42
U.S.C. 6321 et seq.). The Secretary shall make grants under this
section in excess of the base allocation established for a State under
regulations issued pursuant to the authorization provided in section
365(f) of such Act only if the governor of the recipient State notifies
the Secretary of Energy in writing that the governor has obtained
necessary assurances that each of the following will occur:
(1) The applicable State regulatory authority will seek to
implement, in appropriate proceedings for each electric and gas
utility, with respect to which the State regulatory authority has
ratemaking authority, a general policy that ensures that utility
financial incentives are aligned with helping their customers use
energy more efficiently and that provide timely cost recovery and a
timely earnings opportunity for utilities associated with cost-
effective measurable and verifiable efficiency savings, in a way
that sustains or enhances utility customers' incentives to use
energy more efficiently.
(2) The State, or the applicable units of local government that
have authority to adopt building codes, will implement the
following:
(A) A building energy code (or codes) for residential
buildings that meets or exceeds the most recently published
International Energy Conservation Code, or achieves equivalent
or greater energy savings.
(B) A building energy code (or codes) for commercial
buildings throughout the State that meets or exceeds the ANSI/
ASHRAE/IESNA Standard 90.1-2007, or achieves equivalent or
greater energy savings.
(C) A plan for the jurisdiction achieving compliance with
the building energy code or codes described in subparagraphs
(A) and (B) within 8 years of the date of enactment of this Act
in at least 90 percent of new and renovated residential and
commercial building space. Such plan shall include active
training and enforcement programs and measurement of the rate
of compliance each year.
(3) The State will to the extent practicable prioritize the
grants toward funding energy efficiency and renewable energy
programs, including--
(A) the expansion of existing energy efficiency programs
approved by the State or the appropriate regulatory authority,
including energy efficiency retrofits of buildings and
industrial facilities, that are funded--
(i) by the State; or
(ii) through rates under the oversight of the
applicable regulatory authority, to the extent applicable;
(B) the expansion of existing programs, approved by the
State or the appropriate regulatory authority, to support
renewable energy projects and deployment activities, including
programs operated by entities which have the authority and
capability to manage and distribute grants, loans, performance
incentives, and other forms of financial assistance; and
(C) cooperation and joint activities between States to
advance more efficient and effective use of this funding to
support the priorities described in this paragraph.
(b) State Match.--The State cost share requirement under the item
relating to ``Department of Energy; Energy Conservation'' in title II
of the Department of the Interior and Related Agencies Appropriations
Act, 1985 (42 U.S.C. 6323a; 98 Stat. 1861) shall not apply to
assistance provided under this section.
(c) Equipment and Materials for Energy Efficiency Measures and
Renewable Energy Measures.--No limitation on the percentage of funding
that may be used for the purchase and installation of equipment and
materials for energy efficiency measures and renewable energy measures
under grants provided under part D of title III of the Energy Policy
and Conservation Act (42 U.S.C. 6321 et seq.) shall apply to assistance
provided under this section.
TITLE V--FINANCIAL SERVICES AND GENERAL GOVERNMENT
DEPARTMENT OF THE TREASURY
Treasury Inspector General for Tax Administration
SALARIES AND EXPENSES
For an additional amount for necessary expenses of the Treasury
Inspector General for Tax Administration in carrying out the Inspector
General Act of 1978, $7,000,000, to remain available until September
30, 2013, for oversight and audits of the administration of the making
work pay tax credit and economic recovery payments under the American
Recovery and Reinvestment Act of 2009.
Community Development Financial Institutions Fund Program Account
For an additional amount for ``Community Development Financial
Institutions Fund Program Account'', $100,000,000, to remain available
until September 30, 2010, for qualified applicants under the fiscal
year 2009 funding round of the Community Development Financial
Institutions Program, of which up to $8,000,000 may be for financial
assistance, technical assistance, training and outreach programs
designed to benefit Native American, Native Hawaiian, and Alaskan
Native communities and provided primarily through qualified community
development lender organizations with experience and expertise in
community development banking and lending in Indian country, Native
American organizations, tribes and tribal organizations and other
suitable providers and up to $2,000,000 may be used for administrative
expenses: Provided, That for the purpose of the fiscal year 2009
funding round, the following statutory provisions are hereby waived: 12
U.S.C. 4707(e) and 12 U.S.C. 4707(d): Provided further, That no
awardee, together with its subsidiaries and affiliates, may be awarded
more than 5 percent of the aggregate funds available during fiscal year
2009 from the Community Development Financial Institutions Program:
Provided further, That no later than 60 days after the date of
enactment of this Act, the Department of the Treasury shall submit to
the Committees on Appropriations of the House of Representatives and
the Senate a detailed expenditure plan for funds provided under this
heading.
Internal Revenue Service
HEALTH INSURANCE TAX CREDIT ADMINISTRATION
For an additional amount to implement the health insurance tax
credit under the TAA Health Coverage Improvement Act of 2009,
$80,000,000, to remain available until September 30, 2010.
GENERAL SERVICES ADMINISTRATION
Real Property Activities
federal buildings fund
limitations on availability of revenue
(including transfer of funds)
For an additional amount to be deposited in the Federal Buildings
Fund, $5,550,000,000, to carry out the purposes of the Fund, of which
not less than $750,000,000 shall be available for Federal buildings and
United States courthouses, not less than $300,000,000 shall be
available for border stations and land ports of entry, and not less
than $4,500,000,000 shall be available for measures necessary to
convert GSA facilities to High-Performance Green Buildings, as defined
in section 401 of Public Law 110-140: Provided, That not to exceed
$108,000,000 of the amounts provided under this heading may be expended
for rental of space, related to leasing of temporary space in
connection with projects funded under this heading: Provided further,
That not to exceed $127,000,000 of the amounts provided under this
heading may be expended for building operations, for the administrative
costs of completing projects funded under this heading: Provided
further, That not to exceed $3,000,000 of the funds provided shall be
for on-the-job pre-apprenticeship and apprenticeship training programs
registered with the Department of Labor, for the construction, repair,
and alteration of Federal buildings: Provided further, That not less
than $5,000,000,000 of the funds provided under this heading shall be
obligated by September 30, 2010, and the remainder of the funds
provided under this heading shall be obligated not later than September
30, 2011: Provided further, That the Administrator of General Services
is authorized to initiate design, construction, repair, alteration, and
other projects through existing authorities of the Administrator:
Provided further, That the General Services Administration shall submit
a detailed plan, by project, regarding the use of funds made available
in this Act to the Committees on Appropriations of the House of
Representatives and the Senate within 45 days of enactment of this Act,
and shall provide notification to the Committees within 15 days prior
to any changes regarding the use of these funds: Provided further,
That, hereafter, the Administrator shall report to the Committees on
the obligation of these funds on a quarterly basis beginning on June
30, 2009: Provided further, That of the amounts provided, $4,000,000
shall be transferred to and merged with ``Government-Wide Policy'', for
the Office of Federal High-Performance Green Buildings as authorized in
the Energy Independence and Security Act of 2007 (Public Law 110-140):
Provided further, That amounts provided under this heading that are
savings or cannot be used for the activity for which originally
obligated may be deobligated and, notwithstanding any other provision
of law, reobligated for the purposes identified in the plan required
under this heading not less than 15 days after notification has been
provided to the Committees on Appropriations of the House of
Representatives and the Senate.
Energy-Efficient Federal Motor Vehicle Fleet Procurement
For capital expenditures and necessary expenses of acquiring motor
vehicles with higher fuel economy, including: hybrid vehicles; electric
vehicles; and commercially-available, plug-in hybrid vehicles,
$300,000,000, to remain available until September 30, 2011: Provided,
That none of these funds may be obligated until the Administrator of
General Services submits to the Committees on Appropriations of the
House of Representatives and the Senate, within 90 days after enactment
of this Act, a plan for expenditure of the funds that details the
current inventory of the Federal fleet owned by the General Services
Administration, as well as other Federal agencies, and the strategy to
expend these funds to replace a portion of the Federal fleet with the
goal of substantially increasing energy efficiency over the current
status, including increasing fuel efficiency and reducing emissions:
Provided further, That, hereafter, the Administrator shall report to
the Committees on the obligation of these funds on a quarterly basis
beginning on September 30, 2009.
Office of Inspector General
For an additional amount for the Office of the Inspector General,
to remain available until September 30, 2013, for oversight and audit
of programs, grants, and projects funded under this title, $7,000,000.
RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY BOARD
For necessary expenses of the Recovery Act Accountability and
Transparency Board to carry out the provisions of title XV of this Act,
$84,000,000, to remain available until September 30, 2011.
SMALL BUSINESS ADMINISTRATION
Salaries and Expenses
For an additional amount, to remain available until September 30,
2010, $69,000,000, of which $24,000,000 is for marketing, management,
and technical assistance under section 7(m) of the Small Business Act
(15 U.S.C. 636(m)(4)) by intermediaries that make microloans under the
microloan program, and of which $20,000,000 is for improving,
streamlining, and automating information technology systems related to
lender processes and lender oversight: Provided, That no later than 60
days after the date of enactment of this Act, the Small Business
Administration shall submit to the Committees on Appropriations of the
House of Representatives and the Senate a detailed expenditure plan for
funds provided under the heading ``Small Business Administration'' in
this Act.
Office of Inspector General
For an additional amount for the Office of Inspector General in
carrying out the provisions of the Inspector General Act of 1978,
$10,000,000, to remain available until September 30, 2013, for
oversight and audit of programs, grants, and projects funded under this
title.
Surety Bond Guarantees Revolving Fund
For additional capital for the Surety Bond Guarantees Revolving
Fund, authorized by the Small Business Investment Act of 1958,
$15,000,000, to remain available until expended.
Business Loans Program Account
For an additional amount for the cost of direct loans, $6,000,000,
to remain available until September 30, 2010, and for an additional
amount for the cost of guaranteed loans, $630,000,000, to remain
available until September 30, 2010: Provided, That of the amount for
the cost of guaranteed loans, $375,000,000 shall be for reimbursements,
loan subsidies and loan modifications for loans to small business
concerns authorized in section 501 of this title; and $255,000,000
shall be for loan subsidies and loan modifications for loans to small
business concerns authorized in section 506 of this title: Provided
further, That such costs, including the cost of modifying such loans,
shall be as defined in section 502 of the Congressional Budget Act of
1974.
Administrative Provisions--Small Business Administration
Sec. 501. Fee Reductions. (a) Administrative Provisions Small
Business Administration.--Until September 30, 2010, and to the extent
that the cost of such elimination or reduction of fees is offset by
appropriations, with respect to each loan guaranteed under section 7(a)
of the Small Business Act (15 U.S.C. 636(a)) and section 502 of this
title, for which the application is approved on or after the date of
enactment of this Act, the Administrator shall--
(1) in lieu of the fee otherwise applicable under section
7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)),
collect no fee or reduce fees to the maximum extent possible; and
(2) in lieu of the fee otherwise applicable under section
7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)),
collect no fee or reduce fees to the maximum extent possible.
(b) Temporary Fee Elimination for the 504 Loan Program.--
(1) In general.--Until September 30, 2010, and to the extent
the cost of such elimination in fees is offset by appropriations,
with respect to each project or loan guaranteed by the
Administrator pursuant to title V of the Small Business Investment
Act of 1958 (15 U.S.C. 695 et seq.) for which an application is
approved or pending approval on or after the date of enactment of
this Act--
(A) the Administrator shall, in lieu of the fee otherwise
applicable under section 503(d)(2) of the Small Business
Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no fee;
(B) a development company shall, in lieu of the processing
fee under section 120.971(a)(1) of title 13, Code of Federal
Regulations (relating to fees paid by borrowers), or any
successor thereto, collect no fee.
(2) Reimbursement for waived fees.--
(A) In general.--To the extent that the cost of such
payments is offset by appropriations, the Administrator shall
reimburse each development company that does not collect a
processing fee pursuant to paragraph (1)(B).
(B) Amount.--The payment to a development company under
subparagraph (A) shall be in an amount equal to 1.5 percent of
the net debenture proceeds for which the development company
does not collect a processing fee pursuant to paragraph (1)(B).
(c) Application of Fee Eliminations.--
(1) To the extent that amounts are made available to the
Administrator for the purpose of fee eliminations or reductions
under subsection (a), the Administrator shall--
(A) first use any amounts provided to eliminate or reduce
fees paid by small business borrowers under clauses (i) through
(iii) of paragraph (18)(A), to the maximum extent possible; and
(B) then use any amounts provided to eliminate or reduce
fees under paragraph (23)(A) paid by small business lenders
with assets less than $1,000,000,000 as of the date of
enactment; and
(C) then use any remaining amounts appropriated under this
title to reduce fees paid by small business lenders other than
those with assets less than $1,000,000,000.
(2) The Administrator shall eliminate fees under subsections
(a) and (b) until the amount provided for such purposes, as
applicable, under the heading ``Business Loans Program Account''
under the heading ``Small Business Administration'' under this Act
are expended.
Sec. 502. Economic Stimulus Lending Program for Small Businesses.
(a) Purpose.--The purpose of this section is to permit the Small
Business Administration to guarantee up to 90 percent of qualifying
small business loans made by eligible lenders.
(b) Definitions.--For purposes of this section:
(1) The term ``Administrator'' means the Administrator of the
Small Business Administration.
(2) The term ``qualifying small business loan'' means any loan
to a small business concern pursuant to section 7(a) of the Small
Business Act (15 U.S.C. 636) or title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 and following) except for
such loans made under section 7(a)(31).
(3) The term ``small business concern'' has the same meaning as
provided by section 3 of the Small Business Act (15 U.S.C. 632).
(c) Qualified Borrowers.--
(1) Aliens unlawfully present in the united states.--A loan
guarantee may not be made under this section for a loan made to a
concern if an individual who is an alien unlawfully present in the
United States--
(A) has an ownership interest in that concern; or
(B) has an ownership interest in another concern that
itself has an ownership interest in that concern.
(2) Firms in violation of immigration laws.--No loan guarantee
may be made under this section for a loan to any entity found,
based on a determination by the Secretary of Homeland Security or
the Attorney General to have engaged in a pattern or practice of
hiring, recruiting or referring for a fee, for employment in the
United States an alien knowing the person is an unauthorized alien.
(d) Criminal Background Checks.--Prior to the approval of any loan
guarantee under this section, the Administrator may verify the
applicant's criminal background, or lack thereof, through the best
available means, including, if possible, use of the National Crime
Information Center computer system at the Federal Bureau of
Investigation.
(e) Application of Other Law.--Nothing in this section shall be
construed to exempt any activity of the Administrator under this
section from the Federal Credit Reform Act of 1990 (title V of the
Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661
and following).
(f) Sunset.--Loan guarantees may not be issued under this section
after the date 12 months after the date of enactment of this Act.
(g) Small Business Act Provisions.--The provisions of the Small
Business Act applicable to loan guarantees under section 7 of that Act
and regulations promulgated thereunder as of the date of enactment of
this Act shall apply to loan guarantees under this section except as
otherwise provided in this section.
(h) Authorization.--There are authorized to be appropriated such
sums as may be necessary to carry out this section.
Sec. 503. Establishment of SBA Secondary Market Guarantee
Authority. (a) Purpose.--The purpose of this section is to provide the
Administrator with the authority to establish the SBA Secondary Market
Guarantee Authority within the SBA to provide a Federal guarantee for
pools of first lien 504 loans that are to be sold to third-party
investors.
(b) Definitions.--For purposes of this section:
(1) The term ``Administrator'' means the Administrator of the
Small Business Administration.
(2) The term ``first lien position 504 loan'' means the first
mortgage position, non-federally guaranteed loans made by private
sector lenders made under title V of the Small Business Investment
Act.
(c) Establishment of Authority.--
(1) Organization.--
(A) The Administrator shall establish a Secondary Market
Guarantee Authority within the Small Business Administration.
(B) The Administrator shall appoint a Director of the
Authority who shall report to the Administrator.
(C) The Administrator is authorized to hire such personnel
as are necessary to operate the Authority and may contract such
operations of the Authority as necessary to qualified third
party companies or individuals.
(D) The Administrator is authorized to contract with
private sector fiduciary and custom dial agents as necessary to
operate the Authority.
(2) Guarantee process.--
(A) The Administrator shall establish, by rule, a process
in which private sector entities may apply to the
Administration for a Federal guarantee on pools of first lien
position 504 loans that are to be sold to third-party
investors.
(B) The Administrator is authorized to contract with
private sector fiduciary and custom dial agents as necessary to
operate the Authority.
(3) Responsibilities.--
(A) The Administrator shall establish, by rule, a process
in which private sector entities may apply to the SBA for a
Federal guarantee on pools of first lien position 504 loans
that are to be sold to third-party investors.
(B) The rule under this section shall provide for a process
for the Administrator to consider and make decisions regarding
whether to extend a Federal guarantee referred to in clause
(i). Such rule shall also provide that:
(i) The seller of the pools purchasing a guarantee
under this section retains not less than 5 percent of the
dollar amount of the pools to be sold to third-party
investors.
(ii) The Administrator shall charge fees, upfront or
annual, at a specified percentage of the loan amount that
is at such a rate that the cost of the program under the
Federal Credit Reform Act of 1990 (title V of the
Congressional Budget and Impoundment Control Act of 1974; 2
U.S.C. 661) shall be equal to zero.
(iii) The Administrator may guarantee not more than
$3,000,000,000 of pools under this authority.
(C) The Administrator shall establish documents, legal
covenants, and other required documentation to protect the
interests of the United States.
(D) The Administrator shall establish a process to receive
and disburse funds to entities under the authority established
in this section.
(d) Limitations.--
(1) The Administrator shall ensure that entities purchasing a
guarantee under this section are using such guarantee for the
purpose of selling 504 first lien position pools to third-party
investors.
(2) If the Administrator finds that any such guarantee was used
for a purpose other than that specified in paragraph (1), the
Administrator shall--
(A) prohibit the purchaser of the guarantee or its
affiliates (within the meaning of the regulations under 13 CFR
121.103) from using the authority of this section in the
future; and
(B) take any other actions the Administrator, in
consultation with the Attorney General of the United States
deems appropriate.
(e) Oversight.--The Administrator shall submit a report to Congress
not later than the third business day of each month setting forth each
of the following:
(1) The aggregate amount of guarantees extended under this
section during the preceding month.
(2) The aggregate amount of guarantees outstanding.
(3) Defaults and payments on defaults made under this section.
(4) The identity of each purchaser of a guarantee found by the
Administrator to have misused guarantees under this section.
(5) Any other information the Administrator deems necessary to
fully inform Congress of undue risk to the United States associated
with the issuance of guarantees under this section.
(f) Duration of Program.--The authority of this section shall
terminate on the date 2 years after the date of enactment of this
section.
(g) Funding.--Such sums as necessary are authorized to be
appropriated to carry out the provisions of this section.
(h) Budget Treatment.--Nothing in this section shall be construed
to exempt any activity of the Administrator under this section from the
Federal Credit Reform Act of 1990 (title V of the Congressional Budget
and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
(i) Emergency Rulemaking Authority.--The Administrator shall issue
regulations under this section within 15 days after the date of
enactment of this section. The notice requirements of section 553(b) of
title 5, United States Code shall not apply to the promulgation of such
regulations.
Sec. 504. Stimulus for Community Development Lending. (a) Low
Interest Refinancing Under the Local Development Business Loan
Program.--Section 502 of the Small Business Investment Act of 1958 (15
U.S.C. 696) is amended by adding at the end the following:
``(7) Permissible debt refinancing.--
``(A) In general.--Any financing approved under this title
may include a limited amount of debt refinancing.
``(B) Expansions.--If the project involves expansion of a
small business concern, any amount of existing indebtedness
that does not exceed 50 percent of the project cost of the
expansion may be refinanced and added to the expansion cost,
if--
``(i) the proceeds of the indebtedness were used to
acquire land, including a building situated thereon, to
construct a building thereon, or to purchase equipment;
``(ii) the existing indebtedness is collateralized by
fixed assets;
``(iii) the existing indebtedness was incurred for the
benefit of the small business concern;
``(iv) the financing under this title will be used only
for refinancing existing indebtedness or costs relating to
the project financed under this title;
``(v) the financing under this title will provide a
substantial benefit to the borrower when prepayment
penalties, financing fees, and other financing costs are
accounted for;
``(vi) the borrower has been current on all payments
due on the existing debt for not less than 1 year preceding
the date of refinancing; and
``(vii) the financing under section 504 will provide
better terms or rate of interest than the existing
indebtedness at the time of refinancing.''.
(b) Job Creation Goals.--Section 501(e)(1) and section 501(e)(2) of
the Small Business Investment Act (15 U.S.C. 695) are each amended by
striking ``$50,000'' and inserting ``$65,000''.
Sec. 505. Increasing Small Business Investment. (a) Simplified
Maximum Leverage Limits.--Section 303(b) of the Small Business
Investment Act of 1958 (15 U.S.C. 683(b)) is amended as follows:
(1) By striking so much of paragraph (2) as precedes
subparagraphs (C) and (D) and inserting the following:
``(2) Maximum leverage.--
``(A) In general.--The maximum amount of outstanding
leverage made available to any one company licensed under
section 301(c) of this Act may not exceed the lesser of--
``(i) 300 percent of such company's private capital; or
``(ii) $150,000,000.
``(B) Multiple licenses under common control.--The maximum
amount of outstanding leverage made available to two or more
companies licensed under section 301(c) of this Act that are
commonly controlled (as determined by the Administrator) and
not under capital impairment may not exceed $225,000,000.'';
(2) By amending paragraph (2)(C) by inserting ``(i)'' before
``In calculating'' and adding the following at the end thereof:
``(ii) The maximum amount of outstanding leverage made
available to--
``(I) any 1 company described in clause (iii) may
not exceed the lesser of 300 percent of private capital
of the company, or $175,000,000; and
``(II) 2 or more companies described in clause
(iii) that are under common control (as determined by
the Administrator) may not exceed $250,000,000.
``(iii) A company described in this clause is a company
licensed under section 301(c) in the first fiscal year
after the date of enactment of this clause or any fiscal
year thereafter that certifies in writing that not less
than 50 percent of the dollar amount of investments of that
company shall be made in companies that are located in a
low-income geographic area (as that term is defined in
section 351).''.
(3) By striking paragraph (4).
(b) Simplified Aggregate Investment Limitations.--Section 306(a) of
the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is amended
to read as follows:
``(a) Percentage Limitation on Private Capital.--If any small
business investment company has obtained financing from the
Administrator and such financing remains outstanding, the aggregate
amount of securities acquired and for which commitments may be issued
by such company under the provisions of this title for any single
enterprise shall not, without the approval of the Administrator, exceed
10 percent of the sum of--
``(1) the private capital of such company; and
``(2) the total amount of leverage projected by the company in
the company's business plan that was approved by the Administrator
at the time of the grant of the company's license.''.
(c) Investments in Smaller Enterprises.--Section 303(d) of the
Small Business Investment Act of 1958 (15 U.S.C. 683(d)) is amended to
read as follows:
``(d) Investments in Smaller Enterprises.--The Administrator shall
require each licensee, as a condition of approval of an application for
leverage, to certify in writing that not less than 25 percent of the
aggregate dollar amount of financings of that licensee shall be
provided to smaller enterprises.''.
Sec. 506. Business Stabilization Program. (a) In General.--Subject
to the availability of appropriations, the Administrator of the Small
Business Administration shall carry out a program to provide loans on a
deferred basis to viable (as such term is determined pursuant to
regulation by the Administrator of the Small Business Administration)
small business concerns that have a qualifying small business loan and
are experiencing immediate financial hardship.
(b) Eligible Borrower.--A small business concern as defined under
section 3 of the Small Business Act (15 U.S.C. 632).
(c) Qualifying Small Business Loan.--A loan made to a small
business concern that meets the eligibility standards in section 7(a)
of the Small Business Act (15 U.S.C. 636(a)) but shall not include
loans guarantees (or loan guarantee commitments made) by the
Administrator prior to the date of enactment of this Act.
(d) Loan Size.--Loans guaranteed under this section may not exceed
$35,000.
(e) Purpose.--Loans guaranteed under this program shall be used to
make periodic payment of principal and interest, either in full or in
part, on an existing qualifying small business loan for a period of
time not to exceed 6 months.
(f) Loan Terms.--Loans made under this section shall:
(1) carry a 100 percent guaranty; and
(2) have interest fully subsidized for the period of repayment.
(g) Repayment.--Repayment for loans made under this section shall--
(1) be amortized over a period of time not to exceed 5 years;
and
(2) not begin until 12 months after the final disbursement of
funds is made.
(h) Collateral.--The Administrator of the Small Business
Administration may accept any available collateral, including
subordinated liens, to secure loans made under this section.
(i) Fees.--The Administrator of the Small Business Administration
is prohibited from charging any processing fees, origination fees,
application fees, points, brokerage fees, bonus points, prepayment
penalties, and other fees that could be charged to a loan applicant for
loans under this section.
(j) Sunset.--The Administrator of the Small Business Administration
shall not issue loan guarantees under this section after September 30,
2010.
(k) Emergency Rulemaking Authority.--The Administrator of the Small
Business Administration shall issue regulations under this section
within 15 days after the date of enactment of this section. The notice
requirements of section 553(b) of title 5, United States Code shall not
apply to the promulgation of such regulations.
SEC. 507. GAO REPORT.
(a) Report.--Not later than 60 days after the enactment of this
Act, the Comptroller General of the United States shall report to the
Congress on the actions of the Administrator in implementing the
authorities established in the administrative provisions of this title.
(b) Included Item.--The report under this section shall include a
summary of the activity of the Administrator under this title and an
analysis of whether he is accomplishing the purpose of increasing
liquidity in the secondary market for Small Business Administration
loans.
SEC. 508. SURETY BONDS.
(a) Maximum Bond Amount.--Section 411(a)(1) of the Small Business
Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended--
(1) by inserting ``(A)'' after ``(1)'';
(2) by striking ``$2,000,000'' and inserting ``$5,000,000'';
and
(3) by adding at the end the following:
``(B) The Administrator may guarantee a surety under subparagraph
(A) for a total work order or contract amount that does not exceed
$10,000,000, if a contracting officer of a Federal agency certifies
that such a guarantee is necessary.''.
(b) Denial of Liability--
Section 411 of the Small Business Investment Act of 1958 (15
U.S.C. 694b) is amended--
(1) by striking subsection (e) and inserting the following:
``(e) Reimbursement of Surety; Conditions.--
Pursuant to any such guarantee or agreement, the Administration shall
reimburse the surety, as provided in subsection (c) of this section,
except that the Administration shall be relieved of liability (in whole
or in part within the discretion of the Administration) if--
(1) the surety obtained such guarantee or agreement, or applied
for such reinbursement, by fraud or material misrepresentation,
(2) the total contract amount at the time of execution of the
bond or bonds exceeds $5,000,000,
(3) the surety has breached a material term or condition of
such guarantee agreement, or
(4) the surety has substantially violated the regulations
promulgated by the Administration pursuant to subsection (d).''
(2) by adding at the end the following:
``(k) For bonds made or executed with the prior approval of the
Administration, the Administration shall not deny liability to a surety
based upon material information that was provided as part of the
guaranty application.''.
(c) Size Standards.--Section 410 of the Small Business Investment
Act of 1958 (15 U.S.C. 694a) is amended by adding at the end the
following:
``(9) Notwithstanding any other provision of law or any rule,
regulation, or order of the Administration, for purposes of
sections 410, 411, and 412 the term `small business concern' means
a business concern that meets the size standard for the primary
industry in which such business concern, and the affiliates of such
business concern, is engaged, as determined by the Administrator in
accordance with the North American Industry Classification
System.''.
(d) Study--The Administrator of the Small Business Administration
shall conduct a study of the current funding structure of the surety
bond program carried out under part B (15 U.S.C. 694a et seq.) of title
IV of the Small Business Investment Act of 1958. The study shall
include--
(1) an assessment of whether the program's current funding
framework and program fees are inhibiting the program's growth;
(2) an assessment of whether surety companies and small
business concerns could benefit from an alternative funding
structure; and
(e) Report--Not later than 180 days after the date of enactment of
this Act, the Administrator shall submit to Congress a report on the
results of the study required under subsection (d).
(f) Sunset.--The amendments made by this section shall remain in
effect until September 30, 2010.
SEC. 509. ESTABLISHMENT OF SBA SECONDARY MARKET LENDING AUTHORITY.
(a) Purpose.--The purpose of this section is to provide the Small
Business Administration with the authority to establish a Secondary
Market Lending Authority within the SBA to make loans to the
systemically important SBA secondary market broker-dealers who operate
the SBA secondary market.
(b) Definitions.--For purposes of this section:
(1) The term ``Administrator'' means the Administrator of the
SBA.
(2) The term ``SBA'' means the Small Business Administration.
(3) The terms ``Secondary Market Lending Authority'' and
``Authority'' mean the office establishedunder subsection (c).
(4) The term ``SBA secondary market'' meansthe market for the
purchase and sale of loans originated, underwritten, and closed
under the Small Business Act.
(5) The term ``Systemically Important Secondary Market Broker-
Dealers'' mean those entities designated under subsection (c)(1) as
vital to the continued operation of the SBA secondary market by
reason of their purchase and sale of the government guaranteed
portion of loans, or pools of loans,originated, underwritten, and
closed under the Small Business Act.
(c) Responsibilities, Authorities, Organization, and Limitations.--
(1) Designation of systemically important SBA secondary market
broker-dealers.--The Administrator shall establish a process to
designate, in consultation with the Board of Governors of the
Federal Reserve and the Secretary of the Treasury, Systemically
Important Secondary Market Broker-Dealers.
(2) Establishment of SBA secondary market lending authority.--
(A) Organization.--
(i) The Administrator shall establish within the SBA an
office to provide loans to Systemically Important Secondary
Market Broker-dealers to be used for the purpose of
financing the inventory of the government guaranteed
portion of loans, originated, underwritten, and closed
under the Small Business Act or pools of such loans.
(ii) The Administrator shall appoint a Director of the
Authority who shall report to the Administrator.
(iii) The Administrator is authorized to hire such
personnel as are necessary to operate the Authority.
(iv) The Administrator may contract such Authority
operations as he determines necessary to qualified third-
party companies or individuals.
(v) The Administrator is authorized to contract with
private sector fiduciary and custodial agents as necessary
to operate the Authority.
(B) Loans.--
(i) The Administrator shall establish by rule a process
under which Systemically Important SBA Secondary Market
Broker-Dealers designated under paragraph (1) may apply to
the Administrator for loans under this section.
(ii) The rule under clause (i) shall provide a process
for the Administrator to consider and make decisions
regarding whether or not to extend a loan applied for under
this section. Such rule shall include provisions to assure
each of the following:
(I) That loans made under this section are for the
sole purpose of financing the inventory of the govern
ment guaranteed portion of loans, originated,
underwritten, and closed under the Small Business Act
or pools of such loans.
(II) That loans made under this section are fully
collateralized to the satisfaction of the
Administrator.
(III) That there is no limit to the frequency in
which a borrower may borrow under this section unless
the Administrator determines that doing so would create
an undue risk of loss to the agency or the United
States.
(IV) That there is no limit on the size of a loan,
subject to the discretion of the Administrator.
(iii) Interest on loans under this section shall not
exceed the Federal Funds target rate as established by the
Federal Reserve Board of Governors plus 25 basis points.
(iv) The rule under this section shall provide for such
loan documents, legal covenants, collateral requirements
and other required documentation as necessary to protect
the interests of the agency, the United States, and the
taxpayer.
(v) The Administrator shall establish custodial
accounts to safeguard any collateral pledged to the SBA in
connection with a loan under this section.
(vi) The Administrator shall establish a process to
disburse and receive funds to and from borrowers under this
section.
(C) Limitations on use of Loan Proceeds by Systemically Important
Secondary Market Broker-Dealers.--The Administrator shall ensure that
borrowers under this section are using funds provided under this
section only for the purpose specified in subparagraph (B)(ii)(I). If
the Administrator finds that such funds were used for any other
purpose, the Administrator shall--
(i) require immediate repayment of outstanding loans;
(ii) prohibit the borrower, its affiliates, or any future
corporate manifestation of the borrower from using the Authority;
and
(iii) take any other actions the Administrator, in consultation
with the Attorney General of the United States, deemsappropriate.
(d) Report to Congress.--The Administrator shall submit a report to
Congress not later than the third business day of each month containing
a statement of each of the following:
(1) The aggregate loan amounts extended during the preceding
month under this section.
(2) The aggregate loan amounts repaid under this section during
the proceeding month.
(3) The aggregate loan amount outstanding under this section.
(4) The aggregate value of assets held as collateral under this
section;
(5) The amount of any defaults or delinquencies on loans made
under this section.
(6) The identity of any borrower found by the Administrator to
misuse funds made available under this section.
(7) Any other information the Administrator deems necessary to
fully inform Congress of undue risk of financial loss to the United
States in connection with loans made under this section.
(e) Duration.--The authority of this section shall remain in effect
for a period of 2 years after the date of enactment of this section.
(f) Fees.--The Administrator shall charge fees, up front, annual,
or both at a specified percentage of the loan amount that is at such a
rate that the cost of the program under the Federal Credit Reform Act
of 1990 ((title V of the Congressional Budget and Impoundment Control
Act of 1974; 2 U.S.C. 661) shall be equal to zero.
(h) Budget treatment.--Nothing in this section shall be construed
to exempt any activity of the Administrator under this section from the
Federal Credit Reform Act of 1990 (title V of the Congressional Budget
and Im poundment Control Act of 1974; 2 U.S.C. 661 and following).
(i) Emergency Rulemaking Authority.--The Administrator shall
promulgate regulations under this section within 30 days after the date
of enactment of enactment of this section. In promulgating these
regulations,the Administrator the notice requirements of section 553(b)
of title 5 of the United States Code shall not apply.
TITLE VI--DEPARTMENT OF HOMELAND SECURITY
Office of the Under Secretary for Management
For an additional amount for the ``Office of the Under Secretary
for Management'', $200,000,000 for planning, design, construction
costs, site security, information technology infrastructure, fixtures,
and related costs to consolidate the Department of Homeland Security
headquarters: Provided, That no later than 60 days after the date of
enactment of this Act, the Secretary of Homeland Security, in
consultation with the Administrator of General Services, shall submit
to the Committees on Appropriations of the Senate and the House of
Representatives a plan for the expenditure of these funds.
office of inspector general
For an additional amount for the ``Office of Inspector General'',
$5,000,000, to remain available until September 30, 2012, for oversight
and audit of programs, grants, and projects funded under this title.
U.S. Customs and Border Protection
salaries and expenses
For an additional amount for ``Salaries and Expenses'',
$160,000,000, of which $100,000,000 shall be for the procurement and
deployment of non-intrusive inspection systems; and of which
$60,000,000 shall be for procurement and deployment of tactical
communications equipment and radios: Provided, That no later than 45
days after the date of enactment of this Act, the Secretary of Homeland
Security shall submit to the Committees on Appropriations of the Senate
and the House of Representatives a plan for expenditure of these funds.
border security fencing, infrastructure, and technology
For an additional amount for ``Border Security Fencing,
Infrastructure, and Technology'', $100,000,000 for expedited
development and deployment of border security technology on the
Southwest border: Provided, That no later than 45 days after the date
of enactment of this Act, the Secretary of Homeland Security shall
submit to the Committees on Appropriations of the Senate and the House
of Representatives a plan for expenditure of these funds.
construction
For an additional amount for ``Construction'', $420,000,000 solely
for planning, management, design, alteration, and construction of U.S.
Customs and Border Protection owned land border ports of entry:
Provided, That no later than 45 days after the date of enactment of
this Act, the Secretary of Homeland Security shall submit to the
Committees on Appropriations of the Senate and the House of
Representatives a plan for expenditure of these funds.
U.S. Immigration and Customs Enforcement
automation modernization
For an additional amount for ``Automation Modernization'',
$20,000,000 for the procurement and deployment of tactical
communications equipment and radios: Provided, That no later than 45
days after the date of enactment of this Act, the Secretary of Homeland
Security shall submit to the Committees on Appropriations of the Senate
and the House of Representatives a plan for expenditure of these funds.
Transportation Security Administration
aviation security
For an additional amount for ``Aviation Security'', $1,000,000,000
for procurement and installation of checked baggage explosives
detection systems and checkpoint explosives detection equipment:
Provided, That the Assistant Secretary of Homeland Security
(Transportation Security Administration) shall prioritize the award of
these funds to accelerate the installations at locations with completed
design plans: Provided further, That no later than 45 days after the
date of enactment of this Act, the Secretary of Homeland Security shall
submit to the Committees on Appropriations of the Senate and the House
of Representatives a plan for the expenditure of these funds.
Coast Guard
acquisition, construction, and improvements
For an additional amount for ``Acquisition, Construction, and
Improvements'', $98,000,000 for shore facilities and aids to navigation
facilities; for priority procurements due to materials and labor cost
increases; and for costs to repair, renovate, assess, or improve
vessels: Provided, That no later than 45 days after the date of
enactment of this Act, the Secretary of Homeland Security shall submit
to the Committees on Appropriations of the Senate and the House of
Representatives a plan for the expenditure of these funds.
alteration of bridges
For an additional amount for ``Alteration of Bridges'',
$142,000,000 for alteration or removal of obstructive bridges, as
authorized by section 6 of the Truman-Hobbs Act (33 U.S.C. 516):
Provided, That the Coast Guard shall award these funds to those bridges
that are ready to proceed to construction: Provided further, That no
later than 45 days after the date of enactment of this Act, the
Secretary of Homeland Security shall submit to the Committees on
Appropriations of the Senate and the House of Representatives a plan
for the expenditure of these funds.
Federal Emergency Management Agency
state and local programs
For an additional amount for grants, $300,000,000, to be allocated
as follows:
(1) $150,000,000 for Public Transportation Security Assistance
and Railroad Security Assistance under sections 1406 and 1513 of
the Implementing Recommendations of the 9/11 Commission Act of 2007
(Public Law 110-53; 6 U.S.C. 1135 and 1163).
(2) $150,000,000 for Port Security Grants in accordance with 46
U.S.C. 70107, notwithstanding 46 U.S.C. 70107(c).
firefighter assistance grants
For an additional amount for competitive grants, $210,000,000 for
modifying, upgrading, or constructing non-Federal fire stations:
Provided, That up to 5 percent shall be for program administration:
Provided further, That no grant shall exceed $15,000,000.
disaster assistance direct loan program account
Notwithstanding section 417(b) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act, the amount of any such loan issued
pursuant to this section for major disasters occurring in calendar year
2008 may exceed $5,000,000, and may be equal to not more than 50
percent of the annual operating budget of the local government in any
case in which that local government has suffered a loss of 25 percent
or more in tax revenues: Provided, That the cost of modifying such
loans shall be as defined in section 502 of the Congressional Budget
Act of 1974 (2 U.S.C. 661a).
emergency food and shelter
For an additional amount to carry out the emergency food and
shelter program pursuant to title III of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11331 et seq.), $100,000,000: Provided, That
total administrative costs shall not exceed 3.5 percent of the total
amount made available under this heading.
GENERAL PROVISIONS--THIS TITLE
Sec. 601. Notwithstanding any other provision of law, the
President shall establish an arbitration panel under the Federal
Emergency Management Agency public assistance program to expedite the
recovery efforts from Hurricanes Katrina and Rita within the Gulf Coast
Region. The arbitration panel shall have sufficient authority regarding
the award or denial of disputed public assistance applications for
covered hurricane damage under section 403, 406, or 407 of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C.
5170b, 5172, or 5173) for a project the total amount of which is more
than $500,000.
Sec. 602. The Administrator of the Federal Emergency Management
Agency may not prohibit or restrict the use of funds designated under
the hazard mitigation grant program for damage caused by Hurricanes
Katrina and Rita if the homeowner who is an applicant for assistance
under such program commenced work otherwise eligible for hazard
mitigation grant program assistance under section 404 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170c)
without approval in writing from the Administrator.
Sec. 603. Subparagraph (E) of section 34(a)(1) of the Federal Fire
Prevention and Control Act of 1974 (15 U.S.C. 2229a(a)(1)(E)) shall not
apply with respect to funds appropriated in this or any other Act
making appropriations for fiscal year 2009 or 2010 for grants under
such section 34.
Sec. 604. (a) Requirement.--Except as provided in subsections (c)
through (g), funds appropriated or otherwise available to the
Department of Homeland Security may not be used for the procurement of
an item described in subsection (b) if the item is not grown,
reprocessed, reused, or produced in the United States.
(b) Covered Items.--An item referred to in subsection (a) is any of
the following, if the item is directly related to the national security
interests of the United States:
(1) An article or item of--
(A) clothing and the materials and components thereof,
other than sensors, electronics, or other items added to, and
not normally associated with, clothing (and the materials and
components thereof);
(B) tents, tarpaulins, covers, textile belts, bags,
protective equipment (including but not limited to body armor),
sleep systems, load carrying equipment (including but not
limited to fieldpacks), textile marine equipment, parachutes,
or bandages;
(C) cotton and other natural fiber products, woven silk or
woven silk blends, spun silk yarn for cartridge cloth,
synthetic fabric or coated synthetic fabric (including all
textile fibers and yarns that are for use in such fabrics),
canvas products, or wool (whether in the form of fiber or yarn
or contained in fabrics, materials, or manufactured articles);
or
(D) any item of individual equipment manufactured from or
containing such fibers, yarns, fabrics, or materials.
(c) Availability Exception.--Subsection (a) does not apply to the
extent that the Secretary of Homeland Security determines that
satisfactory quality and sufficient quantity of any such article or
item described in subsection (b)(1) grown, reprocessed, reused, or
produced in the United States cannot be procured as and when needed at
United States market prices. This section is not applicable to covered
items that are, or include, materials determined to be non-available in
accordance with Federal Acquisition Regulation 25.104 Nonavailable
Articles.
(d) De Minimis Exception.--Notwithstanding subsection (a), the
Secretary of Homeland Security may accept delivery of an item covered
by subsection (b) that contains non-compliant fibers if the total value
of non-compliant fibers contained in the end item does not exceed 10
percent of the total purchase price of the end item.
(e) Exception for Certain Procurements Outside the United States.--
Subsection (a) does not apply to the following:
(1) Procurements by vessels in foreign waters.
(2) Emergency procurements.
(f) Exception for Small Purchases.--Subsection (a) does not apply
to purchases for amounts not greater than the simplified acquisition
threshold referred to in section 2304(g) of title 10, United States
Code.
(g) Applicability to Contracts and Subcontracts for Procurement of
Commercial Items.--This section is applicable to contracts and
subcontracts for the procurement of commercial items not withstanding
section 34 of the Office of Federal Procurement Policy Act (41 U.S.C.
430), with the exception of commercial items listed under subsections
(b)(1)(C) and (b)(1)(D) above. For the purposes of this section,
``commercial'' shall be as defined in the Federal Acquisition
Regulation--Part 2.
(h) Geographic Coverage.--In this section, the term ``United
States'' includes the possessions of the United States.
(i) Notification Required Within 7 Days After Contract Award if
Certain Exceptions Applied.--In the case of any contract for the
procurement of an item described in subsection (b)(1), if the Secretary
of Homeland Security applies an exception set forth in subsection (c)
with respect to that contract, the Secretary shall, not later than 7
days after the award of the contract, post a notification that the
exception has been applied on the Internet site maintained by the
General Services Administration known as FedBizOps.gov (or any
successor site).
(j) Training During Fiscal Year 2009.--
(1) In general.--The Secretary of Homeland Security shall
ensure that each member of the acquisition workforce in the
Department of Homeland Security who participates personally and
substantially in the acquisition of textiles on a regular basis
receives training during fiscal year 2009 on the requirements of
this section and the regulations implementing this section.
(2) Inclusion of information in new training programs.--The
Secretary shall ensure that any training program for the
acquisition workforce developed or implemented after the date of
the enactment of this Act includes comprehensive information on the
requirements described in paragraph (1).
(k) CONSISTENCY WITH INTERNATIONAL AGREEMENTS.-- This section shall
be applied in a manner consistent with United States obligations under
international agreements.
(l) Effective Date.--This section applies with respect to contracts
entered into by the Department of Homeland Security 180 days after the
date of the enactment of this Act.
TITLE VII--INTERIOR, ENVIRONMENT, AND RELATED AGENCIES
DEPARTMENT OF THE INTERIOR
Bureau of Land Management
management of lands and resources
For an additional amount for ``Management of Lands and Resources'',
for activities on all Bureau of Land Management lands including
maintenance, rehabilitation, and restoration of facilities, property,
trails and lands and for remediation of abandoned mines and wells,
$125,000,000.
construction
For an additional amount for ``Construction'', for activities on
all Bureau of Land Management lands including construction,
reconstruction, decommissioning and repair of roads, bridges, trails,
property, and facilities and for energy efficient retrofits of existing
facilities, $180,000,000.
wildland fire management
For an additional amount for ``Wildland Fire Management'', for
hazardous fuels reduction, $15,000,000.
United States Fish and Wildlife Service
resource management
For an additional amount for ``Resource Management'', for deferred
maintenance, construction, and capital improvement projects on national
wildlife refuges and national fish hatcheries and for high priority
habitat restoration projects, $165,000,000.
construction
For an additional amount for ``Construction'', for construction,
reconstruction, and repair of roads, bridges, property, and facilities
and for energy efficient retrofits of existing facilities,
$115,000,000.
National Park Service
operation of the national park system
For an additional amount for ``Operation of the National Park
System'', for deferred maintenance of facilities and trails and for
other critical repair and rehabilitation projects, $146,000,000.
Historic Preservation Fund
For an additional amount for ``Historic Preservation Fund'', for
historic preservation projects at historically black colleges and
universities as authorized by the Historic Preservation Fund Act of
1996 and the Omnibus Parks and Public Lands Act of 1996, $15,000,000:
Provided, That any matching requirements otherwise required for such
projects are waived.
construction
For an additional amount for ``Construction'', for repair and
restoration of roads; construction of facilities, including energy
efficient retrofits of existing facilities; equipment replacement;
preservation and repair of historical resources within the National
Park System; cleanup of abandoned mine sites on park lands; and other
critical infrastructure projects, $589,000,000.
United States Geological Survey
surveys, investigations, and research
For an additional amount for ``Surveys, Investigations, and
Research'', $140,000,000, for repair, construction and restoration of
facilities; equipment replacement and upgrades including stream gages,
and seismic and volcano monitoring systems; national map activities;
and other critical deferred maintenance and improvement projects.
Bureau of Indian Affairs
operation of indian programs
For an additional amount for ``Operation of Indian Programs'', for
workforce training programs and the housing improvement program,
$40,000,000.
construction
For an additional amount for ``Construction'', for repair and
restoration of roads; replacement school construction; school
improvements and repairs; and detention center maintenance and repairs,
$450,000,000: Provided, That section 1606 of this Act shall not apply
to tribal contracts entered into by the Bureau of Indian Affairs with
this appropriation.
indian guaranteed loan program account
For an additional amount for ``Indian Guaranteed Loan Program
Account'', $10,000,000.
Office of Inspector General
salaries and expenses
For an additional amount for ``Office of Inspector General'',
$15,000,000, to remain available until September 30, 2012.
ENVIROMENTAL PROTECTION AGENCY
Office of Inspector General
For an additional amount for ``Office of Inspector General'',
$20,000,000, to remain available until September 30, 2012.
Hazardous Substance Superfund
For an additional amount for ``Hazardous Substance Superfund'',
$600,000,000, which shall be for the Superfund Remedial program:
Provided, That the Administrator of the Environmental Protection Agency
(Administrator) may retain up to 3 percent of the funds appropriated
herein for management and oversight purposes.
Leaking Underground Storage Tank Trust Fund Program
For an additional amount for ``Leaking Underground Storage Tank
Trust Fund Program'', $200,000,000, which shall be for cleanup
activities authorized by section 9003(h) of the Solid Waste Disposal
Act: Provided, That none of these funds shall be subject to cost share
requirements under section 9003(h)(7)(B) of such Act: Provided further,
That the Administrator may retain up to 1.5 percent of the funds
appropriated herein for management and oversight purposes.
State and Tribal Assistance Grants
(including transfers of funds)
For an additional amount for ``State and Tribal Assistance
Grants'', $6,400,000,000, which shall be allocated as follows:
(1) $4,000,000,000 shall be for capitalization grants for the
Clean Water State Revolving Funds under title VI of the Federal
Water Pollution Control Act and $2,000,000,000 shall be for
capitalization grants under section 1452 of the Safe Drinking Water
Act: Provided, That the Administrator may retain up to 1 percent of
the funds appropriated herein for management and oversight
purposes: Provided further, That funds appropriated herein shall
not be subject to the matching or cost share requirements of
sections 602(b)(2), 602(b)(3) or 202 of the Federal Water Pollution
Control Act nor the matching requirements of section 1452(e) of the
Safe Drinking Water Act: Provided further, That the Administrator
shall reallocate funds appropriated herein for the Clean and
Drinking Water State Revolving Funds (Revolving Funds) where
projects are not under contract or construction within 12 months of
the date of enactment of this Act: Provided further, That
notwithstanding the priority rankings they would otherwise receive
under each program, priority for funds appropriated herein shall be
given to projects on a State priority list that are ready to
proceed to construction within 12 months of the date of enactment
of this Act: Provided further, That notwithstanding the
requirements of section 603(d) of the Federal Water Pollution
Control Act or section 1452(f) of the Safe Drinking Water Act, for
the funds appropriated herein, each State shall use not less than
50 percent of the amount of its capitalization grants to provide
additional subsidization to eligible recipients in the form of
forgiveness of principal, negative interest loans or grants or any
combination of these: Provided further, That, to the extent there
are sufficient eligible project applications, not less than 20
percent of the funds appropriated herein for the Revolving Funds
shall be for projects to address green infrastructure, water or
energy efficiency improvements or other environmentally innovative
activities: Provided further, That notwithstanding the limitation
on amounts specified in section 518(c) of the Federal Water
Pollution Control Act, up to 1.5 percent of the funds appropriated
herein for the Clean Water State Revolving Funds may be reserved by
the Administrator for tribal grants under section 518(c) of such
Act: Provided further, That up to 4 percent of the funds
appropriated herein for tribal set-asides under the Revolving Funds
may be transferred to the Indian Health Service to support
management and oversight of tribal projects: Provided further, That
none of the funds appropriated herein shall be available for the
purchase of land or easements as authorized by section 603(c) of
the Federal Water Pollution Control Act or for activities
authorized by section 1452(k) of the Safe Drinking Water Act:
Provided further, That notwithstanding section 603(d)(2) of the
Federal Water Pollution Control Act and section 1452(f)(2) of the
Safe Drinking Water Act, funds may be used to buy, refinance or
restructure the debt obligations of eligible recipients only where
such debt was incurred on or after October 1, 2008;
(2) $100,000,000 shall be to carry out Brownfields projects
authorized by section 104(k) of the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980: Provided, That
the Administrator may reserve up to 3.5 percent of the funds
appropriated herein for management and oversight purposes: Provided
further, That none of the funds appropriated herein shall be
subject to cost share requirements under section 104(k)(9)(B)(iii)
of such Act; and
(3) $300,000,000 shall be for Diesel Emission Reduction Act
grants pursuant to title VII, subtitle G of the Energy Policy Act
of 2005: Provided, That the Administrator may reserve up to 2
percent of the funds appropriated herein for management and
oversight purposes: Provided further, That none of the funds
appropriated herein for Diesel Emission Reduction Act grants shall
be subject to the State Grant and Loan Program Matching Incentive
provisions of section 793(c)(3) of such Act.
Administrative Provision, Environmental Protection Agency
(Including Transfers of Funds)
Funds made available to the Environmental Protection Agency by this
Act for management and oversight purposes shall remain available until
September 30, 2011, and may be transferred to the ``Environmental
Programs and Management'' account as needed.
DEPARTMENT OF AGRICULTURE
Forest Service
capital improvement and maintenance
For an additional amount for ``Capital Improvement and
Maintenance'', $650,000,000, for priority road, bridge and trail
maintenance and decommissioning, including related watershed
restoration and ecosystem enhancement projects; facilities improvement,
maintenance and renovation; remediation of abandoned mine sites; and
support costs necessary to carry out this work.
wildland fire management
For an additional amount for ``Wildland Fire Management'',
$500,000,000, of which $250,000,000 is for hazardous fuels reduction,
forest health protection, rehabilitation and hazard mitigation
activities on Federal lands and of which $250,000,000 is for State and
private forestry activities including hazardous fuels reduction, forest
health and ecosystem improvement activities on State and private lands
using all authorities available to the Forest Service: Provided, That
up to $50,000,000 of the total funding may be used to make wood-to-
energy grants to promote increased utilization of biomass from Federal,
State and private lands: Provided further, That funds provided for
activities on State and private lands shall not be subject to matching
or cost share requirements.
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Indian Health Service
indian health services
For an additional amount for ``Indian Health Services'', for health
information technology activities, $85,000,000: Provided, That such
funds may be used for both telehealth services development and related
infrastructure requirements that are typically funded through the
``Indian Health Facilities'' account: Provided further, That
notwithstanding any other provision of law, health information
technology funds provided within this title shall be allocated at the
discretion of the Director of the Indian Health Service.
indian health facilities
For an additional amount for ``Indian Health Facilities'', for
facilities construction projects, deferred maintenance and improvement
projects, the backlog of sanitation projects and the purchase of
equipment, $415,000,000, of which $227,000,000 is provided within the
health facilities construction activity for the completion of up to two
facilities from the current priority list for which work has already
been initiated: Provided, That for the purposes of this Act, spending
caps included within the annual appropriation for ``Indian Health
Facilities'' for the purchase of medical equipment shall not apply:
Provided further, That section 1606 of this Act shall not apply to
tribal contracts entered into by the Service with this appropriation.
OTHER RELATED AGENCIES
Smithsonian Institution
Facilities Capital
For an additional amount for ``Facilities Capital'', for repair and
revitalization of existing facilities, $25,000,000.
National Foundation on the Arts and the Humanities
National Endowment for the Arts
grants and administration
For an additional amount for ``Grants and Administration'',
$50,000,000, to be distributed in direct grants to fund arts projects
and activities which preserve jobs in the non-profit arts sector
threatened by declines in philanthropic and other support during the
current economic downturn: Provided, That 40 percent of such funds
shall be distributed to State arts agencies and regional arts
organizations in a manner similar to the agency's current practice and
60 percent of such funds shall be for competitively selected arts
projects and activities according to sections 2 and 5(c) of the
National Foundation on the Arts and Humanities Act of 1965 (20 U.S.C.
951, 954(c)): Provided further, That matching requirements under
section 5(e) of such Act shall be waived.
GENERAL PROVISIONS--THIS TITLE
Sec. 701. (a) Within 30 days of enactment of this Act, each agency
receiving funds under this title shall submit a general plan for the
expenditure of such funds to the House and Senate Committees on
Appropriations.
(b) Within 90 days of enactment of this Act, each agency receiving
funds under this title shall submit to the Committees a report
containing detailed project level information associated with the
general plan submitted pursuant to subsection (a).
Sec. 702. In carrying out the work for which funds in this title
are being made available, the Secretary of the Interior and the
Secretary of Agriculture shall utilize, where practicable, the Public
Lands Corps, Youth Conservation Corps, Student Conservation
Association, Job Corps and other related partnerships with Federal,
State, local, tribal or non-profit groups that serve young adults.
Sec. 703. Each agency receiving funds under this title may transfer
up to 10 percent of the funds in any account to other appropriation
accounts within the agency, if the head of the agency (1) determines
that the transfer will enhance the efficiency or effectiveness of the
use of the funds without changing the intended purpose; and (2)
notifies the Committees on Appropriations of the House of
Representatives and the Senate 10 days prior to the transfer.
TITLE VIII--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND
EDUCATION, AND RELATED AGENCIES
DEPARTMENT OF LABOR
Employment and Training Administration
training and employment services
For an additional amount for ``Training and Employment Services''
for activities under the Workforce Investment Act of 1998 (``WIA''),
$3,950,000,000, which shall be available for obligation on the date of
enactment of this Act, as follows:
(1) $500,000,000 for grants to the States for adult employment
and training activities, including supportive services and needs-
related payments described in section 134(e)(2) and (3) of the WIA:
Provided, That a priority use of these funds shall be services to
individuals described in 134(d)(4)(E) of the WIA;
(2) $1,200,000,000 for grants to the States for youth
activities, including summer employment for youth: Provided, That
no portion of such funds shall be reserved to carry out section
127(b)(1)(A) of the WIA: Provided further, That for purposes of
section 127(b)(1)(C)(iv) of the WIA, funds available for youth
activities shall be allotted as if the total amount available for
youth activities in the fiscal year does not exceed $1,000,000,000:
Provided further, That with respect to the youth activities
provided with such funds, section 101(13)(A) of the WIA shall be
applied by substituting ``age 24'' for ``age 21'': Provided
further, That the work readiness performance indicator described in
section 136(b)(2)(A)(ii)(I) of the WIA shall be the only measure of
performance used to assess the effectiveness of summer employment
for youth provided with such funds;
(3) $1,250,000,000 for grants to the States for dislocated
worker employment and training activities;
(4) $200,000,000 for the dislocated workers assistance national
reserve;
(5) $50,000,000 for YouthBuild activities: Provided, That for
program years 2008 and 2009, the YouthBuild program may serve an
individual who has dropped out of high school and re-enrolled in an
alternative school, if that re-enrollment is part of a sequential
service strategy; and
(6) $750,000,000 for a program of competitive grants for worker
training and placement in high growth and emerging industry
sectors: Provided, That $500,000,000 shall be for research, labor
exchange and job training projects that prepare workers for careers
in energy efficiency and renewable energy as described in section
171(e)(1)(B) of the WIA: Provided further, That in awarding grants
from those funds not designated in the preceding proviso, the
Secretary of Labor shall give priority to projects that prepare
workers for careers in the health care sector:
Provided, That funds made available in this paragraph shall remain
available through June 30, 2010: Provided further, That a local board
may award a contract to an institution of higher education or other
eligible training provider if the local board determines that it would
facilitate the training of multiple individuals in high-demand
occupations, if such contract does not limit customer choice.
community service employment for older americans
For an additional amount for ``Community Service Employment for
Older Americans'' to carry out title V of the Older Americans Act of
1965, $120,000,000, which shall be available for obligation on the date
of enactment of this Act and shall remain available through June 30,
2010: Provided, That funds shall be allotted within 30 days of such
enactment to current grantees in proportion to their allotment in
program year 2008: Provided further, That funds made available under
this heading in this Act may, in accordance with section 517(c) of the
Older Americans Act of 1965, be recaptured and reobligated.
state unemployment insurance and employment service operations
For an additional amount for ``State Unemployment Insurance and
Employment Service Operations'' for grants to States in accordance with
section 6 of the Wagner-Peyser Act, $400,000,000, which may be expended
from the Employment Security Administration Account in the Unemployment
Trust Fund, and which shall be available for obligation on the date of
enactment of this Act: Provided, That such funds shall remain available
to the States through September 30, 2010: Provided further, That
$250,000,000 of such funds shall be used by States for reemployment
services for unemployment insurance claimants (including the integrated
Employment Service and Unemployment Insurance information technology
required to identify and serve the needs of such claimants): Provided
further, That the Secretary of Labor shall establish planning and
reporting procedures necessary to provide oversight of funds used for
reemployment services.
Departmental Management
salaries and expenses
(including transfer of funds)
For an additional amount for ``Departmental Management'',
$80,000,000, for the enforcement of worker protection laws and
regulations, oversight, and coordination activities related to the
infrastructure and unemployment insurance investments in this Act:
Provided, That the Secretary of Labor may transfer such sums as
necessary to ``Employment and Standards Administration'', ``Employee
Benefits Security Administration'', ``Occupational Safety and Health
Administration'', and ``Employment and Training Administration--Program
Administration'' for enforcement, oversight, and coordination
activities: Provided further, That prior to obligating any funds
proposed to be transferred from this account, the Secretary shall
provide to the Committees on Appropriations of the House of
Representatives and the Senate an operating plan describing the planned
uses of each amount proposed to be transferred.
office of job corps
For an additional amount for ``Office of Job Corps'', $250,000,000,
for construction, rehabilitation and acquisition of Job Corps Centers,
which shall be available upon the date of enactment of this Act and
remain available for obligation through June 30, 2010: Provided, That
section 1552(a) of title 31, United States Code shall not apply if
funds are used for a multi-year lease agreement that will result in
construction activities that can commence within 120 days of enactment
of this Act: Provided further, That notwithstanding section 3324(a) of
title 31, United States Code, the funds used for an agreement under the
preceding proviso may be used for advance, progress, and other
payments: Provided further, That the Secretary of Labor may transfer up
to 15 percent of such funds to meet the operational needs of such
centers, which may include training for careers in the energy
efficiency, renewable energy, and environmental protection industries:
Provided further, That the Secretary shall provide to the Committees on
Appropriations of the House of Representatives and the Senate an
operating plan describing the allocation of funds, and a report on the
actual obligations, expenditures, and unobligated balances for each
activity funded under this heading not later than September 30, 2009
and quarterly thereafter as long as funding provided under this heading
is available for obligation or expenditure.
office of inspector general
For an additional amount for the ``Office of Inspector General'',
$6,000,000, which shall remain available through September 30, 2012,
for salaries and expenses necessary for oversight and audit of
programs, grants, and projects funded in this Act.
DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Resources and Services Administration
health resources and services
For an additional amount for ``Health Resources and Services'',
$2,500,000,000 which shall be used as follows:
(1) $500,000,000 shall be for grants to health centers
authorized under section 330 of the Public Health Service Act
(``PHS Act'');
(2) $1,500,000,000 shall be available for grants for
construction, renovation and equipment, and for the acquisition of
health information technology systems, for health centers including
health center controlled networks receiving operating grants under
section 330 of the PHS Act, notwithstanding the limitation in
section 330(e)(3); and
(3) $500,000,000 to address health professions workforce
shortages, of which $75,000,000 for the National Health Service
Corps shall remain available through September 30, 2011: Provided,
That funds may be used to provide scholarships, loan repayment, and
grants to training programs for equipment as authorized in the PHS
Act, and grants authorized in sections 330L, 747, 767 and 768 of
the PHS Act: Provided further, That 20 percent of the funds
allocated to the National Health Service Corps shall be used for
field operations:
Provided, That up to 0.5 percent of funds provided in this
paragraph may used for administration of such funds: Provided further,
That the Secretary shall provide to the Committees on Appropriations of
the House of Representatives and the Senate an operating plan detailing
activities to be supported and timelines for expenditure prior to
making any Federal obligations of funds provided in this paragraph but
not later than 90 days after the date of enactment of this Act:
Provided further, That the Secretary shall provide to the Committees on
Appropriations of the House of Representatives and the Senate a report
on the actual obligations, expenditures, and unobligated balances for
each activity funded in this paragraph not later than November 1, 2009
and every 6 months thereafter as long as funding provided in this
paragraph is available for obligation or expenditure.
National Institutes of Health
national center for research resources
For an additional amount for ``National Center for Research
Resources'', $1,300,000,000, of which $1,000,000,000 shall be for
grants or contracts under section 481A of the Public Health Service Act
to construct, renovate or repair existing non-Federal research
facilities: Provided, That sections 481A(c)(1)(B)(ii), paragraphs (1),
(3), and (4) of section 481A(e), and section 481B of such Act shall not
apply to the use of such funds: Provided further, That the references
to ``20 years'' in subsections (c)(1)(B)(i) and (f) of section 481A of
such Act are deemed to be references to ``10 years'' for purposes of
using such funds: Provided further, That the National Center for
Research Resources may also use $300,000,000 to provide, under the
authority of section 301 and title IV of such Act, shared
instrumentation and other capital research equipment to recipients of
grants and contracts under section 481A of such Act and other
appropriate entities: Provided further, That the Director of the Center
shall provide to the Committees on Appropriations of the House of
Representatives and the Senate an annual report indicating the number
of institutions receiving awards of a grant or contract under section
481A of such Act, the proposed use of the funding, the average award
size, a list of grant or contract recipients, and the amount of each
award.
office of the director
(including transfer of funds)
For an additional amount for ``Office of the Director'',
$8,200,000,000: Provided, That $7,400,000,000 shall be transferred to
the Institutes and Centers of the National Institutes of Health
(``NIH'') and to the Common Fund established under section 402A(c)(1)
of the Public Health Service Act in proportion to the appropriations
otherwise made to such Institutes, Centers, and Common Fund for fiscal
year 2009: Provided further, That these funds shall be used to support
additional scientific research and shall be merged with and be
available for the same purposes as the appropriation or fund to which
transferred: Provided further, That this transfer authority is in
addition to any other transfer authority available to the NIH: Provided
further, That none of these funds may be transferred to ``National
Institutes of Health--Buildings and Facilities'', the Center for
Scientific Review, the Center for Information Technology, the Clinical
Center, or the Global Fund for HIV/AIDS, Tuberculosis and Malaria:
Provided further, That the funds provided in this Act to the NIH shall
not be subject to the provisions of 15 U.S.C. 638(f)(1) and 15 U.S.C.
638(n)(1): Provided further, That $400,000,000 may be used to carry out
section 215 of division G of Public Law 110-161.
buildings and facilities
For an additional amount for ``Buildings and Facilities'',
$500,000,000, to fund high-priority repair, construction and
improvement projects for National Institutes of Health facilities on
the Bethesda, Maryland campus and other agency locations.
Agency for Healthcare Research and Quality
healthcare research and quality
(including transfer of funds)
For an additional amount for ``Healthcare Research and Quality'' to
carry out titles III and IX of the Public Health Service Act, part A of
title XI of the Social Security Act, and section 1013 of the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003,
$700,000,000 for comparative effectiveness research: Provided, That of
the amount appropriated in this paragraph, $400,000,000 shall be
transferred to the Office of the Director of the National Institutes of
Health (``Office of the Director'') to conduct or support comparative
effectiveness research under section 301 and title IV of the Public
Health Service Act: Provided further, That funds transferred to the
Office of the Director may be transferred to the Institutes and Centers
of the National Institutes of Health and to the Common Fund established
under section 402A(c)(1) of the Public Health Service Act: Provided
further, That this transfer authority is in addition to any other
transfer authority available to the National Institutes of Health:
Provided further, That within the amount available in this paragraph
for the Agency for Healthcare Research and Quality, not more than 1
percent shall be made available for additional full-time equivalents.
In addition, $400,000,000 shall be available for comparative
effectiveness research to be allocated at the discretion of the
Secretary of Health and Human Services (``Secretary''): Provided, That
the funding appropriated in this paragraph shall be used to accelerate
the development and dissemination of research assessing the comparative
effectiveness of health care treatments and strategies, through efforts
that: (1) conduct, support, or synthesize research that compares the
clinical outcomes, effectiveness, and appropriateness of items,
services, and procedures that are used to prevent, diagnose, or treat
diseases, disorders, and other health conditions; and (2) encourage the
development and use of clinical registries, clinical data networks, and
other forms of electronic health data that can be used to generate or
obtain outcomes data: Provided further, That the Secretary shall enter
into a contract with the Institute of Medicine, for which no more than
$1,500,000 shall be made available from funds provided in this
paragraph, to produce and submit a report to the Congress and the
Secretary by not later than June 30, 2009, that includes
recommendations on the national priorities for comparative
effectiveness research to be conducted or supported with the funds
provided in this paragraph and that considers input from stakeholders:
Provided further, That the Secretary shall consider any recommendations
of the Federal Coordinating Council for Comparative Effectiveness
Research established by section 804 of this Act and any recommendations
included in the Institute of Medicine report pursuant to the preceding
proviso in designating activities to receive funds provided in this
paragraph and may make grants and contracts with appropriate entities,
which may include agencies within the Department of Health and Human
Services and other governmental agencies, as well as private sector
entities, that have demonstrated experience and capacity to achieve the
goals of comparative effectiveness research: Provided further, That the
Secretary shall publish information on grants and contracts awarded
with the funds provided under this heading within a reasonable time of
the obligation of funds for such grants and contracts and shall
disseminate research findings from such grants and contracts to
clinicians, patients, and the general public, as appropriate: Provided
further, That, to the extent feasible, the Secretary shall ensure that
the recipients of the funds provided by this paragraph offer an
opportunity for public comment on the research: Provided further, That
research conducted with funds appropriated under this paragraph shall
be consistent with Departmental policies relating to the inclusion of
women and minorities in research: Provided further, That the Secretary
shall provide the Committees on Appropriations of the House of
Representatives and the Senate, the Committee on Energy and Commerce
and the Committee on Ways and Means of the House of Representatives,
and the Committee on Health, Education, Labor, and Pensions and the
Committee on Finance of the Senate with an annual report on the
research conducted or supported through the funds provided under this
heading: Provided further, That the Secretary, jointly with the
Directors of the Agency for Healthcare Research and Quality and the
National Institutes of Health, shall provide the Committees on
Appropriations of the House of Representatives and the Senate a fiscal
year 2009 operating plan for the funds appropriated under this heading
prior to making any Federal obligations of such funds in fiscal year
2009, but not later than July 30, 2009, and a fiscal year 2010
operating plan for such funds prior to making any Federal obligations
of such funds in fiscal year 2010, but not later than November 1, 2009,
that detail the type of research being conducted or supported,
including the priority conditions addressed; and specify the allocation
of resources within the Department of Health and Human Services:
Provided further, That the Secretary, jointly with the Directors of the
Agency for Healthcare Research and Quality and the National Institutes
of Health, shall provide to the Committees on Appropriations of the
House of Representatives and the Senate a report on the actual
obligations, expenditures, and unobligated balances for each activity
funded under this heading not later than November 1, 2009, and every 6
months thereafter as long as funding provided under this heading is
available for obligation or expenditure.
Administration for Children and Families
payments to states for the child care and development block grant
For an additional amount for ``Payments to States for the Child
Care and Development Block Grant'', $2,000,000,000, which shall be used
to supplement, not supplant State general revenue funds for child care
assistance for low-income families: Provided, That, in addition to the
amounts required to be reserved by the States under section 658G of the
Child Care and Development Block Grant Act of 1990, $255,186,000 shall
be reserved by the States for activities authorized under section 658G,
of which $93,587,000 shall be for activities that improve the quality
of infant and toddler care.
children and families services programs
For an additional amount for ``Children and Families Services
Programs'', $3,150,000,000, which shall be used as follows:
(1) $1,000,000,000 for carrying out activities under the Head
Start Act.
(2) $1,100,000,000 for expansion of Early Head Start programs,
as described in section 645A of the Head Start Act: Provided, That
of the funds provided in this paragraph, up to 10 percent shall be
available for the provision of training and technical assistance to
such programs consistent with section 645A(g)(2) of such Act, and
up to 3 percent shall be available for monitoring the operation of
such programs consistent with section 641A of such Act.
(3) $1,000,000,000 for carrying out activities under sections
674 through 679 of the Community Services Block Grant Act, of which
no part shall be subject to section 674(b)(3) of such Act:
Provided, That notwithstanding section 675C(a)(1) and 675C(b) of
such Act, 1 percent of the funds made available to each State from
this additional amount shall be used for benefits enrollment
coordination activities relating to the identification and
enrollment of eligible individuals and families in Federal, State,
and local benefit programs: Provided further, That all funds
remaining available to a State from this additional amount after
application of the previous proviso shall be distributed to
eligible entities as defined in section 673(1) of such Act:
Provided further, That for services furnished under such Act during
fiscal years 2009 and 2010, States may apply the last sentence of
section 673(2) of such Act by substituting ``200 percent'' for
``125 percent''.
(4) $50,000,000 for carrying out activities under section 1110
of the Social Security Act.
Administration on Aging
aging services programs
For an additional amount for ``Aging Services Programs'' under
subparts 1 and 2 of part C, of title III, and under title VI, of the
Older Americans Act of 1965, $100,000,000, of which $65,000,000 shall
be for Congregate Nutrition Services, $32,000,000 shall be for Home-
Delivered Nutrition Services and $3,000,000 shall be for Nutrition
Services for Native Americans.
Office of the Secretary
office of the national coordinator for health information technology
(including transfer of funds)
For an additional amount for ``Office of the National Coordinator
for Health Information Technology'', $2,000,000,000, to carry out title
XIII of this Act, to remain available until expended: Provided, That of
such amount, the Secretary of Health and Human Services shall transfer
$20,000,000 to the Director of the National Institute of Standards and
Technology in the Department of Commerce for continued work on
advancing health care information enterprise integration through
activities such as technical standards analysis and establishment of
conformance testing infrastructure, so long as such activities are
coordinated with the Office of the National Coordinator for Health
Information Technology: Provided further, That $300,000,000 is to
support regional or sub-national efforts toward health information
exchange: Provided further, That 0.25 percent of the funds provided in
this paragraph may be used for administration of such funds: Provided
further, That funds available under this heading shall become available
for obligation only upon submission of an annual operating plan by the
Secretary to the Committees on Appropriations of the House of
Representatives and the Senate: Provided further, That the fiscal year
2009 operating plan shall be provided not later than 90 days after
enactment of this Act and that subsequent annual operating plans shall
be provided not later than November 1 of each year: Provided further,
That these operating plans shall describe how expenditures are aligned
with the specific objectives, milestones, and metrics of the Federal
Health Information Technology Strategic Plan, including any subsequent
updates to the Plan; the allocation of resources within the Department
of Health and Human Services and other Federal agencies; and the
identification of programs and activities that are supported: Provided
further, That the Secretary shall provide to the Committees on
Appropriations of the House of Representatives and the Senate a report
on the actual obligations, expenditures, and unobligated balances for
each major set of activities not later than November 1, 2009, and every
6 months thereafter as long as funding provided under this heading is
available for obligation or expenditure.
office of inspector general
For an additional amount for the ``Office of Inspector General'',
$17,000,000 which shall remain available until September 30, 2012.
public health and social services emergency fund
For an additional amount for ``Public Health and Social Services
Emergency Fund'' to improve information technology security at the
Department of Health and Human Services, $50,000,000.
prevention and wellness fund
(including transfer of funds)
For necessary expenses for a ``Prevention and Wellness Fund'' to be
administered through the Department of Health and Human Services,
Office of the Secretary, $1,000,000,000: Provided, That of the amount
provided in this paragraph, $300,000,000 shall be transferred to the
Centers for Disease Control and Prevention (``CDC'') as an additional
amount to carry out the immunization program (``section 317
immunization program'') authorized by section 317(a), (j), and (k)(1)
of the Public Health Service Act (``PHS Act''): Provided further, That
of the amount provided in this paragraph, $650,000,000 shall be to
carry out evidence-based clinical and community-based prevention and
wellness strategies authorized by the PHS Act, as determined by the
Secretary, that deliver specific, measurable health outcomes that
address chronic disease rates: Provided further, That funds
appropriated in the preceding proviso may be transferred to other
appropriation accounts of the Department of Health and Human Services,
as determined by the Secretary to be appropriate: Provided further,
That of the amount appropriated in this paragraph, $50,000,000 shall be
provided to States for an additional amount to carry out activities to
implement healthcare associated infections reduction strategies:
Provided further, That not more than 0.5 percent of funds made
available in this paragraph may be used for management and oversight
expenses in the office or division of the Department of Health and
Human Services administering the funds: Provided further, That the
Secretary shall, directly or through contracts with public or private
entities, provide for annual evaluations of programs carried out with
funds provided under this heading in order to determine the quality and
effectiveness of the programs: Provided further, That the Secretary
shall, not later than 1 year after the date of enactment of this Act,
submit to the Committees on Appropriations of the House of
Representatives and the Senate, the Committee on Energy and Commerce of
the House of Representatives, and the Committee on Health, Education,
Labor, and Pensions of the Senate, a report summarizing the annual
evaluations of programs from the preceding proviso: Provided further,
That the Secretary shall provide to the Committees on Appropriations of
the House of Representatives and the Senate an operating plan for the
Prevention and Wellness Fund prior to making any Federal obligations of
funds provided in this paragraph (excluding funds to carry out the
section 317 immunization program), but not later than 90 days after the
date of enactment of this Act, that indicates the prevention priorities
to be addressed; provides measurable goals for each prevention
priority; details the allocation of resources within the Department of
Health and Human Services; and identifies which programs or activities
are supported, including descriptions of any new programs or
activities: Provided further, That the Secretary shall provide to the
Committees on Appropriations of the House of Representatives and the
Senate a report on the actual obligations, expenditures, and
unobligated balances for each activity funded under this heading not
later than November 1, 2009, and every 6 months thereafter as long as
funding provided under this heading is available for obligation or
expenditure.
DEPARTMENT OF EDUCATION
Education for the Disadvantaged
For an additional amount for ``Education for the Disadvantaged'' to
carry out title I of the Elementary and Secondary Education Act of 1965
(``ESEA''), $13,000,000,000: Provided, That $5,000,000,000 shall be
available for targeted grants under section 1125 of the ESEA: Provided
further, That $5,000,000,000 shall be available for education finance
incentive grants under section 1125A of the ESEA: Provided further,
That $3,000,000,000 shall be for school improvement grants under
section 1003(g) of the ESEA: Provided further, That each local
educational agency receiving funds available under this paragraph shall
be required to file with the State educational agency, no later than
December 1, 2009, a school-by-school listing of per-pupil educational
expenditures from State and local sources during the 2008-2009 academic
year: Provided further, That each State educational agency shall report
that information to the Secretary of Education by March 31, 2010.
Impact Aid
For an additional amount for ``Impact Aid'' to carry out section
8007 of title VIII of the Elementary and Secondary Education Act of
1965, $100,000,000, which shall be expended pursuant to the
requirements of section 805.
School Improvement Programs
For an additional amount for ``School Improvement Programs'' to
carry out subpart 1, part D of title II of the Elementary and Secondary
Education Act of 1965 (``ESEA''), and subtitle B of title VII of the
McKinney-Vento Homeless Assistance Act, $720,000,000: Provided, That
$650,000,000 shall be available for subpart 1, part D of title II of
the ESEA: Provided further, That the Secretary shall allot $70,000,000
for grants under McKinney-Vento to each State in proportion to the
number of homeless students identified by the State during the 2007-
2008 school year relative to the number of such children identified
nationally during that school year: Provided further, That State
educational agencies shall subgrant the McKinney-Vento funds to local
educational agencies on a competitive basis or according to a formula
based on the number of homeless students identified by the local
educational agencies in the State: Provided further, That the Secretary
shall distribute the McKinney-Vento funds to the States not later than
60 days after the date of the enactment of this Act: Provided further,
That each State shall subgrant the McKinney-Vento funds to local
educational agencies not later than 120 days after receiving its grant
from the Secretary.
Innovation and Improvement
For an additional amount for ``Innovation and Improvement'' to
carry out subpart 1, part D of title V of the Elementary and Secondary
Education Act of 1965 (``ESEA''), $200,000,000: Provided, That these
funds shall be expended as directed in the fifth, sixth, and seventh
provisos under the heading ``Innovation and Improvement'' in the
Department of Education Appropriations Act, 2008: Provided further,
That a portion of these funds shall also be used for a rigorous
national evaluation by the Institute of Education Sciences, utilizing
randomized controlled methodology to the extent feasible, that assesses
the impact of performance-based teacher and principal compensation
systems supported by the funds provided in this Act on teacher and
principal recruitment and retention in high-need schools and subjects:
Provided further, That the Secretary may reserve up to 1 percent of the
amount made available under this heading for management and oversight
of the activities supported with those funds.
Special Education
For an additional amount for ``Special Education'' for carrying out
parts B and C of the Individuals with Disabilities Education Act
(``IDEA''), $12,200,000,000, of which $11,300,000,000 shall be
available for section 611 of the IDEA: Provided, That if every State,
as defined by section 602(31) of the IDEA, reaches its maximum
allocation under section 611(d)(3)(B)(iii) of the IDEA, and there are
remaining funds, such funds shall be proportionally allocated to each
State subject to the maximum amounts contained in section 611(a)(2) of
the IDEA: Provided further, That by July 1, 2009, the Secretary of
Education shall reserve the amount needed for grants under section
643(e) of the IDEA, with any remaining funds to be allocated in
accordance with section 643(c) of the IDEA: Provided further, That the
total amount for each of sections 611(b)(2) and 643(b)(1) of the IDEA,
under this and all other Acts, for fiscal year 2009, whenever enacted,
shall be equal to the amounts respectively available for these
activities under these sections during fiscal year 2008 increased by
the amount of inflation as specified in section 619(d)(2)(B) of the
IDEA: Provided further, That $400,000,000 shall be available for
section 619 of the IDEA and $500,000,000 shall be available for part C
of the IDEA.
Rehabilitation Services and Disability Research
For an additional amount for ``Rehabilitation Services and
Disability Research'' for providing grants to States to carry out the
Vocational Rehabilitation Services program under part B of title I and
parts B and C of chapter 1 and chapter 2 of title VII of the
Rehabilitation Act of 1973, $680,000,000: Provided, That $540,000,000
shall be available for part B of title I of the Rehabilitation Act:
Provided further, That funds provided herein shall not be considered in
determining the amount required to be appropriated under section
100(b)(1) of the Rehabilitation Act of 1973 in any fiscal year:
Provided further, That, notwithstanding section 7(14)(A), the Federal
share of the costs of vocational rehabilitation services provided with
the funds provided herein shall be 100 percent: Provided further, That
$140,000,000 shall be available for parts B and C of chapter 1 and
chapter 2 of title VII of the Rehabilitation Act: Provided further,
That $18,200,000 shall be for State Grants, $87,500,000 shall be for
independent living centers, and $34,300,000 shall be for services for
older blind individuals.
Student Financial Assistance
For an additional amount for ``Student Financial Assistance'' to
carry out subpart 1 of part A and part C of title IV of the Higher
Education Act of 1965 (``HEA''), $15,840,000,000, which shall remain
available through September 30, 2011: Provided, That $15,640,000,000
shall be available for subpart 1 of part A of title IV of the HEA:
Provided further, That $200,000,000 shall be available for part C of
title IV of the HEA.
The maximum Pell Grant for which a student shall be eligible during
award year 2009-2010 shall be $4,860.
Student Aid Administration
For an additional amount for ``Student Aid Administration'' to
carry out part D of title I, and subparts 1, 3, and 4 of part A, and
parts B, C, D, and E of title IV of the Higher Education Act of 1965,
$60,000,000.
Higher Education
For an additional amount for ``Higher Education'' to carry out part
A of title II of the Higher Education Act of 1965, $100,000,000.
Institute of Education Sciences
For an additional amount for ``Institute of Education Sciences'' to
carry out section 208 of the Educational Technical Assistance Act,
$250,000,000, which may be used for Statewide data systems that include
postsecondary and workforce information, of which up to $5,000,000 may
be used for State data coordinators and for awards to public or private
organizations or agencies to improve data coordination.
Departmental Management
office of the inspector general
For an additional amount for the ``Office of the Inspector
General'', $14,000,000, which shall remain available through September
30, 2012, for salaries and expenses necessary for oversight and audit
of programs, grants, and projects funded in this Act.
RELATED AGENCIES
Corporation for National and Community Service
Operating Expenses
(including transfer of funds)
For an additional amount for ``Operating Expenses'' to carry out
the Domestic Volunteer Service Act of 1973 (``1973 Act'') and the
National and Community Service Act of 1990 (``1990 Act''),
$160,000,000: Provided, That $89,000,000 of the funds made available in
this paragraph shall be used to make additional awards to existing
AmeriCorps grantees and may be used to provide adjustments to awards
under subtitle C of title I of the 1990 Act made prior to September 30,
2010 for which the Chief Executive Officer of the Corporation for
National and Community Service (``CEO'') determines that a waiver of
the Federal share limitation is warranted under section 2521.70 of
title 45 of the Code of Federal Regulations: Provided further, That of
the amount made available in this paragraph, not less than $6,000,000
shall be transferred to ``Salaries and Expenses'' for necessary
expenses relating to information technology upgrades, of which up to
$800,000 may be used to administer the funds provided in this
paragraph: Provided further, That of the amount provided in this
paragraph, not less than $65,000,000 shall be for programs under title
I, part A of the 1973 Act: Provided further, That funds provided in the
previous proviso shall not be made available in connection with cost-
share agreements authorized under section 192A(g)(10) of the 1990 Act:
Provided further, That of the funds available under this heading, up to
20 percent of funds allocated to grants authorized under section 124(b)
of title I, subtitle C of the 1990 Act may be used to administer,
reimburse, or support any national service program under section
129(d)(2) of the 1990 Act: Provided further, That, except as provided
herein and in addition to requirements identified herein, funds
provided in this paragraph shall be subject to the terms and conditions
under which funds were appropriated in fiscal year 2008: Provided
further, That the CEO shall provide the Committees on Appropriations of
the House of Representatives and the Senate a fiscal year 2009
operating plan for the funds appropriated in this paragraph prior to
making any Federal obligations of such funds in fiscal year 2009, but
not later than 90 days after the date of enactment of this Act, and a
fiscal year 2010 operating plan for such funds prior to making any
Federal obligations of such funds in fiscal year 2010, but not later
than November 1, 2009, that detail the allocation of resources and the
increased number of members supported by the AmeriCorps programs:
Provided further, That the CEO shall provide to the Committees on
Appropriations of the House of Representatives and the Senate a report
on the actual obligations, expenditures, and unobligated balances for
each activity funded under this heading not later than November 1,
2009, and every 6 months thereafter as long as funding provided under
this heading is available for obligation or expenditure.
Office of Inspector General
For an additional amount for the ``Office of Inspector General'',
$1,000,000, which shall remain available until September 30, 2012.
National Service Trust
(including transfer of funds)
For an additional amount for ``National Service Trust'' established
under subtitle D of title I of the National and Community Service Act
of 1990 (``1990 Act''), $40,000,000, which shall remain available until
expended: Provided, That the Corporation for National and Community
Service may transfer additional funds from the amount provided within
``Operating Expenses'' for grants made under subtitle C of title I of
the 1990 Act to this appropriation upon determination that such
transfer is necessary to support the activities of national service
participants and after notice is transmitted to the Committees on
Appropriations of the House of Representatives and the Senate: Provided
further, That the amount appropriated for or transferred to the
National Service Trust may be invested under section 145(b) of the 1990
Act without regard to the requirement to apportion funds under 31
U.S.C. 1513(b).
Social Security Administration
Limitation on Administrative Expenses
(including transfer of funds)
For an additional amount for ``Limitation on Administrative
Expenses'', $1,000,000,000 shall be available as follows:
(1) $500,000,000 shall remain available until expended for
necessary expenses of the replacement of the National Computer
Center and the information technology costs associated with such
Center: Provided, That the Commissioner of Social Security shall
notify the Committees on Appropriations of the House of
Representatives and the Senate not later than 10 days prior to each
public notice soliciting bids related to site selection and
construction and prior to the lease or purchase of such site:
Provided further, That the construction plan and site selection for
such center shall be subject to review and approval by the Office
of Management and Budget: Provided further, That such center shall
continue to be a government-operated facility; and
(2) $500,000,000 for processing disability and retirement
workloads, including information technology acquisitions and
research in support of such activities: Provided, That up to
$40,000,000 may be used by the Commissioner of Social Security for
health information technology research and activities to facilitate
the adoption of electronic medical records in disability claims,
including the transfer of funds to ``Supplemental Security Income
Program'' to carry out activities under section 1110 of the Social
Security Act.
Office of Inspector General
For an additional amount for the ``Office of Inspector General'',
$2,000,000, which shall remain available through September 30, 2012,
for salaries and expenses necessary for oversight and audit of
programs, projects, and activities funded in this Act.
GENERAL PROVISIONS--THIS TITLE
Sec. 801. (a) Up to 1 percent of the funds made available to the
Department of Labor in this title may be used for the administration,
management, and oversight of the programs, grants, and activities
funded by such appropriation, including the evaluation of the use of
such funds.
(b) Funds designated for these purposes may be available for
obligation through September 30, 2010.
(c) Not later than 30 days after enactment of this Act, the
Secretary of Labor shall provide an operating plan describing the
proposed use of funds for the purposes described in (a).
Sec. 802. Report on the Impact of Past and Future Minimum Wage
Increases. (a) In General.--Section 8104 of the U.S. Troop Readiness,
Veterans' Care, Katrina Recovery, and Iraq Accountability
Appropriations Act, 2007 (Public Law 110-28; 121 Stat. 189) is amended
to read as follows:
``SEC. 8104. REPORT ON THE IMPACT OF PAST AND FUTURE MINIMUM WAGE
INCREASES.
``(a) Study.--Beginning on the date that is 60 days after the date
of enactment of this Act, and every year thereafter until the minimum
wage in the respective territory is $7.25 per hour, the Government
Accountability Office shall conduct a study to--
``(1) assess the impact of the minimum wage increases that
occurred in American Samoa and the Commonwealth of the Northern
Mariana Islands in 2007 and 2008, as required under Public Law 110-
28, on the rates of employment and the living standards of workers,
with full consideration of the other factors that impact rates of
employment and the living standards of workers such as inflation in
the cost of food, energy, and other commodities; and
``(2) estimate the impact of any further wage increases on
rates of employment and the living standards of workers in American
Samoa and the Commonwealth of the Northern Mariana Islands, with
full consideration of the other factors that may impact the rates
of employment and the living standards of workers, including
assessing how the profitability of major private sector firms may
be impacted by wage increases in comparison to other factors such
as energy costs and the value of tax benefits.
``(b) Report.--No earlier than March 15, 2010, and not later than
April 15, 2010, the Government Accountability Office shall transmit its
first report to Congress concerning the findings of the study required
under subsection (a). The Government Accountability Office shall
transmit any subsequent reports to Congress concerning the findings of
a study required by subsection (a) between March 15 and April 15 of
each year.
``(c) Economic Information.--To provide sufficient economic data
for the conduct of the study under subsection (a) the Bureau of the
Census of the Department of Commerce shall include and separately
report on American Samoa, the Commonwealth of the Northern Mariana
Islands, Guam, and the Virgin Islands in its County Business Patterns
data with the same regularity and to the same extent as each Bureau
collects and reports such data for the 50 States. In the event that the
inclusion of American Samoa, the Commonwealth of the Northern Mariana
Islands, Guam, and the Virgin Islands in such surveys and data
compilations requires time to structure and implement, the Bureau of
the Census shall in the interim annually report the best available data
that can feasibly be secured with respect to such territories. Such
interim report shall describe the steps the Bureau will take to improve
future data collection in the territories to achieve comparability with
the data collected in the United States. The Bureau of the Census,
together with the Department of the Interior, shall coordinate their
efforts to achieve such improvements.''.
(b) Effective Date.--The amendment made by this section shall take
effect on the date of enactment of this Act.
Sec. 803. Eligible Employees in the Recreational Marine Industry.
Section 2(3)(F) of the Longshore and Harbor Workers' Compensation Act
(33 U.S.C. 902(3)(F)) is amended--
(1) by striking ``, repair or dismantle''; and
(2) by striking the semicolon and inserting ``, or individuals
employed to repair any recreational vessel, or to dismantle any
part of a recreational vessel in connection with the repair of such
vessel;''.
Sec. 804. Federal Coordinating Council for Comparative
Effectiveness Research. (a) Establishment.--There is hereby established
a Federal Coordinating Council for Comparative Effectiveness Research
(in this section referred to as the ``Council'').
(b) Purpose.--The Council shall foster optimum coordination of
comparative effectiveness and related health services research
conducted or supported by relevant Federal departments and agencies,
with the goal of reducing duplicative efforts and encouraging
coordinated and complementary use of resources.
(c) Duties.--The Council shall--
(1) assist the offices and agencies of the Federal Government,
including the Departments of Health and Human Services, Veterans
Affairs, and Defense, and other Federal departments or agencies, to
coordinate the conduct or support of comparative effectiveness and
related health services research; and
(2) advise the President and Congress on--
(A) strategies with respect to the infrastructure needs of
comparative effectiveness research within the Federal
Government; and
(B) organizational expenditures for comparative
effectiveness research by relevant Federal departments and
agencies.
(d) Membership.--
(1) Number and appointment.--The Council shall be composed of
not more than 15 members, all of whom are senior Federal officers
or employees with responsibility for health-related programs,
appointed by the President, acting through the Secretary of Health
and Human Services (in this section referred to as the
``Secretary''). Members shall first be appointed to the Council not
later than 30 days after the date of the enactment of this Act.
(2) Members.--
(A) In general.--The members of the Council shall include
one senior officer or employee from each of the following
agencies:
(i) The Agency for Healthcare Research and Quality.
(ii) The Centers for Medicare and Medicaid Services.
(iii) The National Institutes of Health.
(iv) The Office of the National Coordinator for Health
Information Technology.
(v) The Food and Drug Administration.
(vi) The Veterans Health Administration within the
Department of Veterans Affairs.
(vii) The office within the Department of Defense
responsible for management of the Department of Defense
Military Health Care System.
(B) Qualifications.--At least half of the members of the
Council shall be physicians or other experts with clinical
expertise.
(3) Chairman; vice chairman.--The Secretary shall serve as
Chairman of the Council and shall designate a member to serve as
Vice Chairman.
(e) Reports.--
(1) Initial report.--Not later than June 30, 2009, the Council
shall submit to the President and the Congress a report containing
information describing current Federal activities on comparative
effectiveness research and recommendations for such research
conducted or supported from funds made available for allotment by
the Secretary for comparative effectiveness research in this Act.
(2) Annual report.--The Council shall submit to the President
and Congress an annual report regarding its activities and
recommendations concerning the infrastructure needs, organizational
expenditures and opportunities for better coordination of
comparative effectiveness research by relevant Federal departments
and agencies.
(f) Staffing; Support.--From funds made available for allotment by
the Secretary for comparative effectiveness research in this Act, the
Secretary shall make available not more than 1 percent to the Council
for staff and administrative support.
(g) Rules of Construction.--
(1) Coverage.--Nothing in this section shall be construed to
permit the Council to mandate coverage, reimbursement, or other
policies for any public or private payer.
(2) Reports and recommendations.--None of the reports submitted
under this section or recommendations made by the Council shall be
construed as mandates or clinical guidelines for payment, coverage,
or treatment.
Sec. 805. Grants for Impact Aid Construction. (a) Reservation for
Management and Oversight.--From the funds appropriated to carry out
this section, the Secretary may reserve up to 1 percent for management
and oversight of the activities carried out with those funds.
(b) Construction Payments.--
(1) Formula grants.--(A) in general.--From 40 percent of the
amount not reserved under subsection (a), the Secretary shall make
payments in accordance with section 8007(a) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7707(a)), except that
the amount of such payments shall be determined in accordance with
subparagraph (B).
(B) Amount of payments.--The Secretary shall make a payment
to each local educational agency eligible for a payment under
section 8007(a) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7707(a)) in an amount that bears the same
relationship to the funds made available under subparagraph (A)
as the number of children determined under subparagraphs (B),
(C), and (D)(i) of section 8003(a)(1) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7703(a)(1)(B), (C),
and (D)(i)) who were in average daily attendance in the local
educational agency for the most recent year for which such
information is available bears to the number of such children
in all the local educational agencies eligible for a payment
under section 8007(a) of the Elementary and Secondary Education
Act of 1965 (20 U.S.C. 7707(a)).
(2) Competitive grants.--From 60 percent of the amount not
reserved under subsection (a), the Secretary--
(A) shall award emergency grants in accordance with section
8007(b) of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7707(b)) to eligible local educational agencies to
enable the agencies to carry out emergency repairs of school
facilities; and
(B) may award modernization grants in accordance with
section 8007(b) of the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 7707(b)) to eligible local educational
agencies to enable the agencies to carry out the modernization
of school facilities.
(3) Provisions not to apply.--Paragraphs (2), (3), (4),
(5)(A)(i), and (5)(A)(vi) of section 8007(b) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7707(b)(2), (3), (4),
(5)(A)(i), and (5)(A)(vi)) shall not apply to grants made under
paragraph (2).
(4) Eligibility.--A local educational agency is eligible to
receive a grant under paragraph (2) if the local educational
agency--
(A) was eligible to receive a payment under section 8002 or
8003 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 7702 and 7703) for fiscal year 2008; and
(B) has--
(i) a total taxable assessed value of real property
that may be taxed for school purposes of less than
$100,000,000; or
(ii) an assessed value of real property per student
that may be taxed for school purposes that is less than the
average of the assessed value of real property per student
that may be taxed for school purposes in the State in which
the local educational agency is located.
(5) Criteria for grants.--In awarding grants under paragraph
(2), the Secretary shall consider the following criteria:
(A) Whether the facility poses a health or safety threat to
students and school personnel, including noncompliance with
building codes and inaccessibility for persons with
disabilities, or whether the existing building capacity meets
the needs of the current enrollment and supports the provision
of comprehensive educational services to meet current standards
in the State in which the local educational agency is located.
(B) The extent to which the new design and proposed
construction utilize energy efficient and recyclable materials.
(C) The extent to which the new design and proposed
construction utilizes non-traditional or alternative building
methods to expedite construction and project completion and
maximize cost efficiency.
(D) The feasibility of project completion within 24 months
from award.
(E) The availability of other resources for the proposed
project.
Sec. 806. Mandatory Pell Grants. Section 401(b)(9)(A) of the Higher
Education Act of 1965 (20 U.S.C. 1070a(b)(9)(A)) is amended--
(1) in clause (ii), by striking ``$2,090,000,000'' and
inserting ``$2,733,000,000''; and
(2) in clause (iii), by striking ``$3,030,000,000'' and
inserting ``$3,861,000,000''.
Sec. 807. (a) In General.--Notwithstanding any other provision of
law, and in order to begin expenditures and activities under this Act
as quickly as possible consistent with prudent management, the
Secretary of Education may--
(1) award fiscal year 2009 funds to States and local
educational agencies on the basis of eligibility determinations
made for the award of fiscal year 2008 funds; and
(2) require States to make prompt allocations to local
educational agencies.
(b) Interest Not to Accrue.--Notwithstanding sections 3335 and 6503
of title 31, United States Code, or any other provision of law, the
United States shall not be liable to any State or other entity for any
interest or fee with respect to any funds under this Act that are
allocated by the Secretary of Education to the State or other entity
within 30 days of the date on which they are available for obligation.
TITLE IX--LEGISLATIVE BRANCH
GOVERNMENT ACCOUNTABILITY OFFICE
Salaries and Expenses
For an additional amount for ``Salaries and Expenses'' of the
Government Accountability Office, $25,000,000, to remain available
until September 30, 2010.
GENERAL PROVISIONS--THIS TITLE
Sec. 901. Government Accountability Office Reviews and Reports.
(a) Reviews and Reports.--
(1) In General.--The Comptroller General shall conduct
bimonthly reviews and prepare reports on such reviews on the use by
selected States and localities of funds made available in this Act.
Such reports, along with any audits conducted by the Comptroller
General of such funds, shall be posted on the Internet and linked
to the website established under this Act by the Recovery
Accountability and Transparency Board.
(2) Redactions.--Any portion of a report or audit under this
subsection may be redacted when made publicly available, if that
portion would disclose information that is not subject to
disclosure under section 552 of title 5, United States Code
(commonly known as the Freedom of Information Act).
(b) Examination of Records.--The Comptroller General may examine
any records related to obligations and use by any Federal, State, or
local government agency of funds made available in this Act.
Sec. 902. Access of Government Accountability Office. (a)
Access.--Each contract awarded using funds made available in this Act
shall provide that the Comptroller General and his representatives are
authorized--
(1) to examine any records of the contractor or any of its
subcontractors, or any State or local agency administering such
contract, that directly pertain to, and involve transactions
relating to, the contract or subcontract; and
(2) to interview any officer or employee of the contractor or
any of its subcontractors, or of any State or local government
agency administering the contract, regarding such transactions.
(b) Relationship to Existing Authority.--Nothing in this section
shall be interpreted to limit or restrict in any way any existing
authority of the Comptroller General.
TITLE X--MILITARY CONSTRUCTION AND VETERANS AFFAIRS
DEPARTMENT OF DEFENSE
Military Construction, Army
For an additional amount for ``Military Construction, Army'',
$180,000,000, to remain available until September 30, 2013: Provided,
That notwithstanding any other provision of law, such funds may be
obligated and expended to carry out planning and design and military
construction projects in the United States not otherwise authorized by
law: Provided further, That of the amount provided under this heading,
$80,000,000 shall be for child development centers, and $100,000,000
shall be for warrior transition complexes: Provided further, That not
later than 30 days after the date of enactment of this Act, the
Secretary of Defense shall submit to the Committees on Appropriations
of both Houses of Congress an expenditure plan for funds provided under
this heading.
Military Construction, Navy and Marine Corps
For an additional amount for ``Military Construction, Navy and
Marine Corps'', $280,000,000, to remain available until September 30,
2013: Provided, That notwithstanding any other provision of law, such
funds may be obligated and expended to carry out planning and design
and military construction projects in the United States not otherwise
authorized by law: Provided further, That of the amount provided under
this heading, $100,000,000 shall be for troop housing, $80,000,000
shall be for child development centers, and $100,000,000 shall be for
energy conservation and alternative energy projects: Provided further,
That not later than 30 days after the date of enactment of this Act,
the Secretary of Defense shall submit to the Committees on
Appropriations of both Houses of Congress an expenditure plan for funds
provided under this heading.
Military Construction, Air Force
For an additional amount for ``Military Construction, Air Force'',
$180,000,000, to remain available until September 30, 2013: Provided,
That notwithstanding any other provision of law, such funds may be
obligated and expended to carry out planning and design and military
construction projects in the United States not otherwise authorized by
law: Provided further, That of the amount provided under this heading,
$100,000,000 shall be for troop housing and $80,000,000 shall be for
child development centers: Provided further, That not later than 30
days after the date of enactment of this Act, the Secretary of Defense
shall submit to the Committees on Appropriations of both Houses of
Congress an expenditure plan for funds provided under this heading.
Military Construction, Defense-Wide
For an additional amount for ``Military Construction, Defense-
Wide'', $1,450,000,000, to remain available until September 30, 2013:
Provided, That notwithstanding any other provision of law, such funds
may be obligated and expended to carry out planning and design and
military construction projects in the United States not otherwise
authorized by law: Provided further, That of the amount provided under
this heading, $1,330,000,000 shall be for the construction of hospitals
and $120,000,000 shall be for the Energy Conservation Investment
Program: Provided further, That not later than 30 days after the date
of enactment of this Act, the Secretary of Defense shall submit to the
Committees on Appropriations of both Houses of Congress an expenditure
plan for funds provided under this heading.
Military Construction, Army National Guard
For an additional amount for ``Military Construction, Army
National Guard'', $50,000,000, to remain available until September 30,
2013: Provided, That notwithstanding any other provision of law, such
funds may be obligated and expended to carry out planning and design
and military construction projects in the United States not otherwise
authorized by law: Provided further, That not later than 30 days after
the date of enactment of this Act, the Secretary of Defense, in
consultation with the Director of the Army National Guard, shall submit
to the Committees on Appropriations of both Houses of Congress an
expenditure plan for funds provided under this heading.
Military Construction, Air National Guard
For an additional amount for ``Military Construction, Air National
Guard'', $50,000,000, to remain available until September 30, 2013:
Provided, That notwithstanding any other provision of law, such funds
may be obligated and expended to carry out planning and design and
military construction projects in the United States not otherwise
authorized by law: Provided further, That not later than 30 days after
the date of enactment of this Act, the Secretary of Defense, in
consultation with the Director of the Air National Guard, shall submit
to the Committees on Appropriations of both Houses of Congress an
expenditure plan for funds provided under this heading.
Family Housing Construction, Army
For an additional amount for ``Family Housing Construction, Army'',
$34,507,000, to remain available until September 30, 2013: Provided,
That notwithstanding any other provision of law, such funds may be
obligated and expended to carry out planning and design and military
construction projects in the United States not otherwise authorized by
law: Provided further, That within 30 days of enactment of this Act,
the Secretary of Defense shall submit to the Committees on
Appropriations of both Houses of Congress an expenditure plan for funds
provided under this heading.
Family Housing Operation and Maintenance, Army
For an additional amount for ``Family Housing Operation and
Maintenance, Army'', $3,932,000: Provided, That notwithstanding any
other provision of law, such funds may be obligated and expended for
maintenance and repair and minor construction projects in the United
States not otherwise authorized by law.
Family Housing Construction, Air Force
For an additional amount for ``Family Housing Construction, Air
Force'', $80,100,000, to remain available until September 30, 2013:
Provided, That notwithstanding any other provision of law, such funds
may be obligated and expended to carry out planning and design and
military construction projects in the United States not otherwise
authorized by law: Provided further, That within 30 days of enactment
of this Act, the Secretary of Defense shall submit to the Committees on
Appropriations of both Houses of Congress an expenditure plan for funds
provided under this heading.
Family Housing Operation and Maintenance, Air Force
For an additional amount for ``Family Housing Operation and
Maintenance, Air Force'', $16,461,000: Provided, That notwithstanding
any other provision of law, such funds may be obligated and expended
for maintenance and repair and minor construction projects in the
United States not otherwise authorized by law.
Homeowners Assistance Fund
For an additional amount for ``Homeowners Assistance Fund'',
established by section 1013 of the Demonstration Cities and
Metropolitan Development Act of 1966, as amended (42 U.S.C. 3374),
$555,000,000, to remain available until expended: Provided, That the
Secretary of Defense shall submit quarterly reports to the Committees
on Appropriations of both Houses of Congress on the expenditure of
funds made available under this heading in this or any other Act.
Administrative Provision
Sec. 1001. (a) Temporary Expansion of Homeowners Assistance Program
to Respond to Mortgage Foreclosure and Credit Crisis. Section 1013 of
the Demonstration Cities and Metropolitan Development Act of 1966 (42
U.S.C. 3374) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (1), (2), and (3) as
clauses (i), (ii), and (iii), respectively, and indenting such
subparagraphs, as so redesignated, 6 ems from the left margin;
(B) by striking ``Notwithstanding any other provision of
law'' and inserting the following:
``(1) Acquisition of property at or near military installations
that have been ordered to be closed.--Notwithstanding any other
provision of law'';
(C) by striking ``if he determines'' and inserting ``if--
``(A) the Secretary determines--'';
(D) in clause (iii), as redesignated by subparagraph (A),
by striking the period at the end and inserting ``; or''; and
(E) by adding at the end the following:
``(B) the Secretary determines--
``(i) that the conditions in clauses (i) and (ii) of
subparagraph (A) have been met;
``(ii) that the closing or realignment of the base or
installation resulted from a realignment or closure carried
out under the 2005 round of defense base closure and
realignment under the Defense Base Closure and Realignment
Act of 1990 (part XXIX of Public Law 101-510; 10 U.S.C.
2687 note);
``(iii) that the property was purchased by the owner
before July 1, 2006;
``(iv) that the property was sold by the owner between
July 1, 2006, and September 30, 2012, or an earlier end
date designated by the Secretary;
``(v) that the property is the primary residence of the
owner; and
``(vi) that the owner has not previously received
benefit payments authorized under this subsection.
``(2) Homeowner assistance for wounded members of the armed
forces, department of defense and united states coast guard
civilian employees, and their spouses.--Notwithstanding any other
provision of law, the Secretary of Defense is authorized to acquire
title to, hold, manage, and dispose of, or, in lieu thereof, to
reimburse for certain losses upon private sale of, or foreclosure
against, any property improved with a one- or two-family dwelling
which was at the time of the relevant wound, injury, or illness,
the primary residence of--
``(A) any member of the Armed Forces in medical transition
who--
``(i) incurred a wound, injury, or illness in the line
of duty during a deployment in support of the Armed Forces;
``(ii) is disabled to a degree of 30 percent or more as
a result of such wound, injury, or illness, as determined
by the Secretary of Defense; and
``(iii) is reassigned in furtherance of medical
treatment or rehabilitation, or due to medical retirement
in connection with such disability;
``(B) any civilian employee of the Department of Defense or
the United States Coast Guard who--
``(i) was wounded, injured, or became ill in the
performance of his or her duties during a forward
deployment occurring on or after September 11, 2001, in
support of the Armed Forces; and
``(ii) is reassigned in furtherance of medical
treatment, rehabilitation, or due to medical retirement
resulting from the sustained disability; or
``(C) the spouse of a member of the Armed Forces or a
civilian employee of the Department of Defense or the United
States Coast Guard if--
``(i) the member or employee was killed in the line of
duty or in the performance of his or her duties during a
deployment on or after September 11, 2001, in support of
the Armed Forces or died from a wound, injury, or illness
incurred in the line of duty during such a deployment; and
``(ii) the spouse relocates from such residence within
2 years after the death of such member or employee.
``(3) Temporary homeowner assistance for members of the armed
forces permanently reassigned during specified mortgage crisis.--
Notwithstanding any other provision of law, the Secretary of
Defense is authorized to acquire title to, hold, manage, and
dispose of, or, in lieu thereof, to reimburse for certain losses
upon private sale of, or foreclosure against, any property improved
with a one- or two-family dwelling situated at or near a military
base or installation, if the Secretary determines--
``(A) that the owner is a member of the Armed Forces
serving on permanent assignment;
``(B) that the owner is permanently reassigned by order of
the United States Government to a duty station or home port
outside a 50-mile radius of the base or installation;
``(C) that the reassignment was ordered between February 1,
2006, and September 30, 2012, or an earlier end date designated
by the Secretary;
``(D) that the property was purchased by the owner before
July 1, 2006;
``(E) that the property was sold by the owner between July
1, 2006, and September 30, 2012, or an earlier end date
designated by the Secretary;
``(F) that the property is the primary residence of the
owner; and
``(G) that the owner has not previously received benefit
payments authorized under this subsection.'';
(2) in subsection (b), by striking ``this section'' each place
it appears and inserting ``subsection (a)(1)'';
(3) in subsection (c)--
(A) by striking ``Such persons'' and inserting the
following:
``(1) Homeowner assistance related to closed military
installations.--
``(A) In general.--Such persons'';
(B) by striking ``set forth above shall elect either (1) to
receive'' and inserting the following: ``set forth in
subsection (a)(1) shall elect either--
``(i) to receive'';
(C) by striking ``difference between (A) 95 per centum''
and all that follows through ``(B) the fair market value'' and
inserting the following: ``difference between--
``(I) 95 per centum of the fair market value of
their property (as such value is determined by the
Secretary of Defense) prior to public announcement of
intention to close all or part of the military base or
installation; and
``(II) the fair market value'';
(D) by striking ``time of the sale, or (2) to receive'' and
inserting the following: ``time of the sale; or
``(ii) to receive'';
(E) by striking ``outstanding mortgages. The Secretary may
also pay a person who elects to receive a cash payment under
clause (1) of the preceding sentence an amount'' and inserting
``outstanding mortgages.
``(B) Reimbursement of expenses.--The Secretary may also
pay a person who elects to receive a cash payment under
subparagraph (A) an amount''; and
(F) by striking ``best interest of the Federal Government.
Cash payment'' and inserting the following: ``best interest of
the United States.
``(2) Homeowner assistance for wounded individuals and their
spouses.--
``(A) In general.--Persons eligible under the criteria set
forth in subsection (a)(2) may elect either--
``(i) to receive a cash payment as compensation for
losses which may be or have been sustained in a private
sale, in an amount not to exceed the difference between--
``(I) 95 per centum of prior fair market value of
their property (as such value is determined by the
Secretary of Defense); and
``(II) the fair market value of such property (as
such value is determined by the Secretary of Defense)
at the time of sale; or
``(ii) to receive, as purchase price for their property
an amount not to exceed 90 per centum of prior fair market
value as such value is determined by the Secretary of
Defense, or the amount of the outstanding mortgages.
``(B) Determination of benefits.--The Secretary may also
pay a person who elects to receive a cash payment under
subparagraph (A) an amount that the Secretary determines
appropriate to reimburse the person for the costs incurred by
the person in the sale of the property if the Secretary
determines that such payment will benefit the person and is in
the best interest of the United States.
``(3) Homeowner assistance for permanently reassigned
individuals.--
``(A) In general.--Persons eligible under the criteria set
forth in subsection (a)(3) may elect either--
``(i) to receive a cash payment as compensation for
losses which may be or have been sustained in a private
sale, in an amount not to exceed the difference between--
``(I) 95 per centum of prior fair market value of
their property (as such value is determined by the
Secretary of Defense); and
``(II) the fair market value of such property (as
such value is determined by the Secretary of Defense)
at the time of sale; or
``(ii) to receive, as purchase price for their property
an amount not to exceed 90 per centum of prior fair market
value as such value is determined by the Secretary of
Defense, or the amount of the outstanding mortgages.
``(B) Determination of benefits.--The Secretary may also
pay a person who elects to receive a cash payment under
subparagraph (A) an amount that the Secretary determines
appropriate to reimburse the person for the costs incurred by
the person in the sale of the property if the Secretary
determines that such payment will benefit the person and is in
the best interest of the United States.
``(4) Compensation and limitations related to foreclosures and
encumbrances.--Cash payment'';
(4) by striking subsection (g);
(5) in subsection (l), by striking ``(a)(2)'' and inserting
``(a)(1)(A)(ii)'';
(6) in subsection (m), by striking ``this section'' and
inserting ``subsection (a)(1)'';
(7) in subsection (n)--
(A) in paragraph (1), by striking ``this section'' and
inserting ``subsection (a)(1)''; and
(B) in paragraph (2), by striking ``this section'' and
inserting ``subsection (a)(1)'';
(8) in subsection (o)--
(A) in paragraph (1), by striking ``this section'' and
inserting ``subsection (a)(1)'';
(B) in paragraph (2), by striking ``this section'' and
inserting ``subsection (a)(1)''; and
(C) by striking paragraph (4); and
(9) by adding at the end the following new subsection:
``(p) Definitions.--In this section:
``(1) the term `Armed Forces' has the meaning given the term
`armed forces' in section 101(a) of title 10, United States Code;
``(2) the term `civilian employee' has the meaning given the
term `employee' in section 2105(a) of title 5, United States Code;
``(3) the term `medical transition', in the case of a member of
the Armed Forces, means a member who--
``(A) is in Medical Holdover status;
``(B) is in Active Duty Medical Extension status;
``(C) is in Medical Hold status;
``(D) is in a status pending an evaluation by a medical
evaluation board;
``(E) has a complex medical need requiring six or more
months of medical treatment; or
``(F) is assigned or attached to an Army Warrior Transition
Unit, an Air Force Patient Squadron, a Navy Patient
Multidisciplinary Care Team, or a Marine Patient Affairs Team/
Wounded Warrior Regiment; and
``(4) the term `nonappropriated fund instrumentality employee'
means a civilian employee who--
``(A) is a citizen of the United States; and
``(B) is paid from nonappropriated funds of Army and Air
Force Exchange Service, Navy Resale and Services Support
Office, Marine Corps exchanges, or any other instrumentality of
the United States under the jurisdiction of the Armed Forces
which is conducted for the comfort, pleasure, contentment, or
physical or mental improvement of members of the Armed
Forces.''.
(b) Clerical Amendment.--Such section is further amended in the
section heading by inserting ``and certain property owned by members of
the Armed Forces, Department of Defense and United States Coast Guard
civilian employees, and surviving spouses'' after ``ordered to be
closed''.
(c) Authority to Use Appropriated Funds.--Notwithstanding
subsection (i) of such section, amounts appropriated or otherwise made
available by this title under the heading ``Homeowners Assistance
Fund'' may be used for the Homeowners Assistance Fund established under
such section.
DEPARTMENT OF VETERANS AFFAIRS
Veterans Health Administration
medical facilities
For an additional amount for ``Medical Facilities'' for non-
recurring maintenance, including energy projects, $1,000,000,000, to
remain available until September 30, 2010: Provided, That not later
than 30 days after the date of enactment of this Act, the Secretary of
Veterans Affairs shall submit to the Committees on Appropriations of
both Houses of Congress an expenditure plan for funds provided under
this heading.
National Cemetery Administration
For an additional amount for ``National Cemetery Administration''
for monument and memorial repairs, including energy projects,
$50,000,000, to remain available until September 30, 2010: Provided,
That not later than 30 days after the date of enactment of this Act,
the Secretary of Veterans Affairs shall submit to the Committees on
Appropriations of both Houses of Congress an expenditure plan for funds
provided under this heading.
Departmental Administration
general operating expenses
For an additional amount for ``General Operating Expenses'',
$150,000,000, to remain available until September 30, 2010, for
additional expenses related to hiring and training temporary surge
claims processors.
information technology systems
For an additional amount for ``Information Technology Systems'',
$50,000,000, to remain available until September 30, 2010, for the
Veterans Benefits Administration: Provided, That not later than 30 days
after the enactment of this Act, the Secretary of Veterans Affairs
shall submit to the Committees on Appropriations of both Houses of
Congress an expenditure plan for funds provided under this heading.
office of inspector general
For an additional amount for ``Office of Inspector General'',
$1,000,000, to remain available until September 30, 2011, for oversight
and audit of programs, grants and projects funded under this title.
grants for construction of state extended care facilities
For an additional amount for ``Grants for Construction of State
Extended Care Facilities'', $150,000,000, to remain available until
September 30, 2010, for grants to assist States to acquire or construct
State nursing home and domiciliary facilities and to remodel, modify,
or alter existing hospital, nursing home, and domiciliary facilities in
State homes, for furnishing care to veterans as authorized by sections
8131 through 8137 of title 38, United States Code.
Administrative Provision
Sec. 1002. Payments to Eligible Persons Who Served in the United
States Armed Forces in the Far East During World War II. (a)
Findings.--Congress makes the following findings:
(1) The Philippine islands became a United States possession in
1898 when they were ceded from Spain following the Spanish-American
War.
(2) During World War II, Filipinos served in a variety of
units, some of which came under the direct control of the United
States Armed Forces.
(3) The regular Philippine Scouts, the new Philippine Scouts,
the Guerrilla Services, and more than 100,000 members of the
Philippine Commonwealth Army were called into the service of the
United States Armed Forces of the Far East on July 26, 1941, by an
executive order of President Franklin D. Roosevelt.
(4) Even after hostilities had ceased, wartime service of the
new Philippine Scouts continued as a matter of law until the end of
1946, and the force gradually disbanded and was disestablished in
1950.
(5) Filipino veterans who were granted benefits prior to the
enactment of the so-called Rescissions Acts of 1946 (Public Laws
79-301 and 79-391) currently receive full benefits under laws
administered by the Secretary of Veterans Affairs, but under
section 107 of title 38, United States Code, the service of certain
other Filipino veterans is deemed not to be active service for
purposes of such laws.
(6) These other Filipino veterans only receive certain benefits
under title 38, United States Code, and, depending on where they
legally reside, are paid such benefit amounts at reduced rates.
(7) The benefits such veterans receive include service-
connected compensation benefits paid under chapter 11 of title 38,
United States Code, dependency indemnity compensation survivor
benefits paid under chapter 13 of title 38, United States Code, and
burial benefits under chapters 23 and 24 of title 38, United States
Code, and such benefits are paid to beneficiaries at the rate of
$0.50 per dollar authorized, unless they lawfully reside in the
United States.
(8) Dependents' educational assistance under chapter 35 of
title 38, United States Code, is also payable for the dependents of
such veterans at the rate of $0.50 per dollar authorized,
regardless of the veterans' residency.
(b) Compensation Fund.--
(1) In General.--There is in the general fund of the Treasury a
fund to be known as the ``Filipino Veterans Equity Compensation
Fund'' (in this section referred to as the ``compensation fund'').
(2) Availability of Funds.--Subject to the availability of
appropriations for such purpose, amounts in the fund shall be
available to the Secretary of Veterans Affairs without fiscal year
limitation to make payments to eligible persons in accordance with
this section.
(c) Payments.--
(1) In General.--The Secretary may make a payment from the
compensation fund to an eligible person who, during the one-year
period beginning on the date of the enactment of this Act, submits
to the Secretary a claim for benefits under this section. The
application for the claim shall contain such information and
evidence as the Secretary may require.
(2) Payment to Surviving Spouse.--If an eligible person who has
filed a claim for benefits under this section dies before payment
is made under this section, the payment under this section shall be
made instead to the surviving spouse, if any, of the eligible
person.
(d) Eligible Persons.--An eligible person is any person who--
(1) served--
(A) before July 1, 1946, in the organized military forces
of the Government of the Commonwealth of the Philippines, while
such forces were in the service of the Armed Forces of the
United States pursuant to the military order of the President
dated July 26, 1941, including among such military forces
organized guerrilla forces under commanders appointed,
designated, or subsequently recognized by the Commander in
Chief, Southwest Pacific Area, or other competent authority in
the Army of the United States; or
(B) in the Philippine Scouts under section 14 of the Armed
Forces Voluntary Recruitment Act of 1945 (59 Stat. 538); and
(2) was discharged or released from service described in
paragraph (1) under conditions other than dishonorable.
(e) Payment Amounts.--Each payment under this section shall be--
(1) in the case of an eligible person who is not a citizen of
the United States, in the amount of $9,000; and
(2) in the case of an eligible person who is a citizen of the
United States, in the amount of $15,000.
(f) Limitation.--The Secretary may not make more than one payment
under this section for each eligible person described in subsection
(d).
(g) Clarification of Treatment of Payments Under Certain Laws.--
Amounts paid to a person under this section--
(1) shall be treated for purposes of the internal revenue laws
of the United States as damages for human suffering; and
(2) shall not be included in income or resources for purposes
of determining--
(A) eligibility of an individual to receive benefits
described in section 3803(c)(2)(C) of title 31, United States
Code, or the amount of such benefits;
(B) eligibility of an individual to receive benefits under
title VIII of the Social Security Act, or the amount of such
benefits; or
(C) eligibility of an individual for, or the amount of
benefits under, any other Federal or federally assisted
program.
(h) Release.--
(1) In General.--Except as provided in paragraph (2), the
acceptance by an eligible person or surviving spouse, as
applicable, of a payment under this section shall be final, and
shall constitute a complete release of any claim against the United
States by reason of any service described in subsection (d).
(2) Payment of Prior Eligibility Status.--Nothing in this
section shall prohibit a person from receiving any benefit
(including health care, survivor, or burial benefits) which the
person would have been eligible to receive based on laws in effect
as of the day before the date of the enactment of this Act.
(i) Recognition of Service.--The service of a person as described
in subsection (d) is hereby recognized as active military service in
the Armed Forces for purposes of, and to the extent provided in, this
section.
(j) Administration.--
(1) The Secretary shall promptly issue application forms and
instructions to ensure the prompt and efficient administration of
the provisions of this section.
(2) The Secretary shall administer the provisions of this
section in a manner consistent with applicable provisions of title
38, United States Code, and other provisions of law, and shall
apply the definitions in section 101 of such title in the
administration of such provisions, except to the extent otherwise
provided in this section.
(k) Reports.--The Secretary shall include, in documents submitted
to Congress by the Secretary in support of the President's budget for
each fiscal year, detailed information on the operation of the
compensation fund, including the number of applicants, the number of
eligible persons receiving benefits, the amounts paid out of the
compensation fund, and the administration of the compensation fund for
the most recent fiscal year for which such data is available.
(l) Authorization of Appropriation.--There is authorized to be
appropriated to the compensation fund $198,000,000, to remain available
until expended, to make payments under this section.
TITLE XI--STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS
DEPARTMENT OF STATE
Administration of Foreign Affairs
diplomatic and consular programs
For an additional amount for ``Diplomatic and Consular Programs''
for urgent domestic facilities requirements for passport and training
functions, $90,000,000: Provided, That the Secretary of State shall
submit to the Committees on Appropriations within 90 days of enactment
of this Act a detailed spending plan for funds appropriated under this
heading: Provided further, That with respect to the funds made
available for passport agencies, such plan shall be developed in
consultation with the Department of Homeland Security and the General
Services Administration and shall coordinate and co-locate, to the
extent feasible, passport agencies with other Federal facilities.
capital investment fund
(including transfer of funds)
For an additional amount for ``Capital Investment Fund'',
$290,000,000, for information technology security and upgrades to
support mission-critical operations, of which up to $38,000,000 shall
be transferred to, and merged with, funds made available under the
heading ``Capital Investment Fund'' of the United States Agency for
International Development: Provided, That the Secretary of State and
the Administrator of the United States Agency for International
Development shall coordinate information technology systems, where
appropriate, to increase efficiencies and eliminate redundancies, to
include co-location of backup information management facilities, and
shall submit to the Committees on Appropriations within 90 days of
enactment of this Act a detailed spending plan for funds appropriated
under this heading.
office of inspector general
For an additional amount for ``Office of Inspector General'' for
oversight requirements, $2,000,000.
International Commissions
International Boundary and Water Commission, United States and Mexico
construction
(including transfer of funds)
For an additional amount for ``Construction'' for the water
quantity program to meet immediate repair and rehabilitation
requirements, $220,000,000: Provided, That up to $2,000,000 may be
transferred to, and merged with, funds available under the heading
``International Boundary and Water Commission, United States and
Mexico--Salaries and Expenses'': Provided further, That the Secretary
of State shall submit to the Committees on Appropriations within 90
days of enactment of this Act a detailed spending plan for funds
appropriated under this heading.
TITLE XII--TRANSPORTATION AND HOUSING AND URBAN DEVELOPMENT, AND
RELATED AGENCIES
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
supplemental discretionary grants for a national surface
transportation system
For an additional amount for capital investments in surface
transportation infrastructure, $1,500,000,000, to remain available
through September 30, 2011: Provided, That the Secretary of
Transportation shall distribute funds provided under this heading as
discretionary grants to be awarded to State and local governments or
transit agencies on a competitive basis for projects that will have a
significant impact on the Nation, a metropolitan area, or a region:
Provided further, That projects eligible for funding provided under
this heading shall include, but not be limited to, highway or bridge
projects eligible under title 23, United States Code, including
interstate rehabilitation, improvements to the rural collector road
system, the reconstruction of overpasses and interchanges, bridge
replacements, seismic retrofit projects for bridges, and road
realignments; public transportation projects eligible under chapter 53
of title 49, United States Code, including investments in projects
participating in the New Starts or Small Starts programs that will
expedite the completion of those projects and their entry into revenue
service; passenger and freight rail transportation projects; and port
infrastructure investments, including projects that connect ports to
other modes of transportation and improve the efficiency of freight
movement: Provided further, That of the amount made available under
this paragraph, the Secretary may use an amount not to exceed
$200,000,000 for the purpose of paying the subsidy and administrative
costs of projects eligible for federal credit assistance under chapter
6 of title 23, United States Code, if the Secretary finds that such use
of the funds would advance the purposes of this paragraph: Provided
further, That in distributing funds provided under this heading, the
Secretary shall take such measures so as to ensure an equitable
geographic distribution of funds and an appropriate balance in
addressing the needs of urban and rural communities: Provided further,
That a grant funded under this heading shall be not less than
$20,000,000 and not greater than $300,000,000: Provided further, That
the Secretary may waive the minimum grant size cited in the preceding
proviso for the purpose of funding significant projects in smaller
cities, regions, or States: Provided further, That not more than 20
percent of the funds made available under this paragraph may be awarded
to projects in a single State: Provided further, That the Federal share
of the costs for which an expenditure is made under this heading may be
up to 100 percent: Provided further, That the Secretary shall give
priority to projects that require a contribution of Federal funds in
order to complete an overall financing package, and to projects that
are expected to be completed within 3 years of enactment of this Act:
Provided further, That the Secretary shall publish criteria on which to
base the competition for any grants awarded under this heading not
later than 90 days after enactment of this Act: Provided further, That
the Secretary shall require applications for funding provided under
this heading to be submitted not later than 180 days after the
publication of such criteria, and announce all projects selected to be
funded from such funds not later than 1 year after enactment of this
Act: Provided further, That projects conducted using funds provided
under this heading must comply with the requirements of subchapter IV
of chapter 31 of title 40, United States Code: Provided further, That
the Secretary may retain up to $1,500,000 of the funds provided under
this heading, and may transfer portions of those funds to the
Administrators of the Federal Highway Administration, the Federal
Transit Administration, the Federal Railroad Administration and the
Maritime Administration, to fund the award and oversight of grants made
under this heading.
Federal Aviation Administration
supplemental funding for facilities and equipment
For an additional amount for necessary investments in Federal
Aviation Administration infrastructure, $200,000,000, to remain
available through September 30, 2010: Provided, That funding provided
under this heading shall be used to make improvements to power systems,
air route traffic control centers, air traffic control towers, terminal
radar approach control facilities, and navigation and landing
equipment: Provided further, That priority be given to such projects or
activities that will be completed within 2 years of enactment of this
Act: Provided further, That amounts made available under this heading
may be provided through grants in addition to the other instruments
authorized under section 106(l)(6) of title 49, United States Code:
Provided further, That the Federal share of the costs for which an
expenditure is made under this heading shall be 100 percent: Provided
further, That amounts provided under this heading may be used for
expenses the agency incurs in administering this program: Provided
further, That not more than 60 days after enactment of this Act, the
Administrator shall establish a process for applying, reviewing and
awarding grants and cooperative and other transaction agreements,
including the form and content of an application, and requirements for
the maintenance of records that are necessary to facilitate an
effective audit of the use of the funding provided: Provided further,
That section 50101 of title 49, United States Code, shall apply to
funds provided under this heading.
Grants-In-Aid for Airports
For an additional amount for ``Grants-In-Aid for Airports'', to
enable the Secretary of Transportation to make grants for discretionary
projects as authorized by subchapter 1 of chapter 471 and subchapter 1
of chapter 475 of title 49, United States Code, and for the
procurement, installation and commissioning of runway incursion
prevention devices and systems at airports of such title,
$1,100,000,000, to remain available through September 30, 2010:
Provided, That such funds shall not be subject to apportionment
formulas, special apportionment categories, or minimum percentages
under chapter 471: Provided further, That the Secretary shall
distribute funds provided under this heading as discretionary grants to
airports, with priority given to those projects that demonstrate to his
satisfaction their ability to be completed within 2 years of enactment
of this Act, and serve to supplement and not supplant planned
expenditures from airport-generated revenues or from other State and
local sources on such activities: Provided further, That the Secretary
shall award grants totaling not less than 50 percent of the funds made
available under this heading within 120 days of enactment of this Act,
and award grants for the remaining amounts not later than 1 year after
enactment of this Act: Provided further, That the Federal share payable
of the costs for which a grant is made under this heading shall be 100
percent: Provided further, That the amount made available under this
heading shall not be subject to any limitation on obligations for the
Grants-in-Aid for Airports program set forth in any Act: Provided
further, That the Administrator of the Federal Aviation Administration
may retain up to 0.2 percent of the funds provided under this heading
to fund the award and oversight by the Administrator of grants made
under this heading.
Federal Highway Administration
highway infrastructure investment
For an additional amount for restoration, repair, construction and
other activities eligible under paragraph (b) of section 133 of title
23, United States Code, and for passenger and freight rail
transportation and port infrastructure projects eligible for assistance
under subsection 601(a)(8) of such title, $27,500,000,000, to remain
available through September 30, 2010: Provided, That, after making the
set-asides required under this heading, 50 percent of the funds made
available under this heading shall be apportioned to States using the
formula set forth in section 104(b)(3) of title 23, United States Code,
and the remaining funds shall be apportioned to States in the same
ratio as the obligation limitation for fiscal year 2008 was distributed
among the States in accordance with the formula specified in section
120(a)(6) of division K of Public Law 110-161: Provided further, That
funds made available under this heading shall be apportioned not later
than 21 days after the date of enactment of this Act: Provided further,
That in selecting projects to be carried out with funds apportioned
under this heading, priority shall be given to projects that are
projected for completion within a 3-year time frame, and are located in
economically distressed areas as defined by section 301 of the Public
Works and Economic Development Act of 1965, as amended (42 U.S.C.
3161): Provided further, That 120 days following the date of such
apportionment, the Secretary of Transportation shall withdraw from each
State an amount equal to 50 percent of the funds awarded to that State
(excluding funds suballocated within the State) less the amount of
funding obligated (excluding funds suballocated within the State), and
the Secretary shall redistribute such amounts to other States that have
had no funds withdrawn under this proviso in the manner described in
section 120(c) of division K of Public Law 110-161: Provided further,
That 1 year following the date of such apportionment, the Secretary
shall withdraw from each recipient of funds apportioned under this
heading any unobligated funds, and the Secretary shall redistribute
such amounts to States that have had no funds withdrawn under this
proviso (excluding funds suballocated within the State) in the manner
described in section 120(c) of division K of Public Law 110-161:
Provided further, That at the request of a State, the Secretary of
Transportation may provide an extension of such 1-year period only to
the extent that he feels satisfied that the State has encountered
extreme conditions that create an unworkable bidding environment or
other extenuating circumstances: Provided further, That before granting
such an extension, the Secretary shall send a letter to the House and
Senate Committees on Appropriations that provides a thorough
justification for the extension: Provided further, That 3 percent of
the funds apportioned to a State under this heading shall be set aside
for the purposes described in subsection 133(d)(2) of title 23, United
States Code (without regard to the comparison to fiscal year 2005):
Provided further, That 30 percent of the funds apportioned to a State
under this heading shall be suballocated within the State in the manner
and for the purposes described in the first sentence of subsection
133(d)(3)(A), in subsection 133(d)(3)(B), and in subsection
133(d)(3)(D): Provided further, That such suballocation shall be
conducted in every State: Provided further, That funds suballocated
within a State to urbanized areas and other areas shall not be subject
to the redistribution of amounts required 120 days following the date
of apportionment of funds provided under this heading: Provided
further, That of the funds provided under this heading, $105,000,000
shall be for the Puerto Rico highway program authorized under section
165 of title 23, United States Code, and $45,000,000 shall be for the
territorial highway program authorized under section 215 of title 23,
United States Code: Provided further, That of the funds provided under
this heading, $60,000,000 shall be for capital expenditures eligible
under section 147 of title 23, United States Code (without regard to
subsection(d)): Provided further, That the Secretary of Transportation
shall distribute such $60,000,000 as competitive discretionary grants
to States, with priority given to those projects that demonstrate to
his satisfaction their ability to be completed within 2 years of
enactment of this Act: Provided further, That of the funds provided
under this heading, $550,000,000 shall be for investments in
transportation at Indian reservations and Federal lands: Provided
further, That of the funds identified in the preceding proviso,
$310,000,000 shall be for the Indian Reservation Roads program,
$170,000,000 shall be for the Park Roads and Parkways program,
$60,000,000 shall be for the Forest Highway Program, and $10,000,000
shall be for the Refuge Roads program: Provided further, That for
investments at Indian reservations and Federal lands, priority shall be
given to capital investments, and to projects and activities that can
be completed within 2 years of enactment of this Act: Provided further,
That 1 year following the enactment of this Act, to ensure the prompt
use of the $550,000,000 provided for investments at Indian reservations
and Federal lands, the Secretary shall have the authority to
redistribute unobligated funds within the respective program for which
the funds were appropriated: Provided further, That up to 4 percent of
the funding provided for Indian Reservation Roads may be used by the
Secretary of the Interior for program management and oversight and
project-related administrative expenses: Provided further, That section
134(f)(3)(C)(ii)(II) of title 23, United States Code, shall not apply
to funds provided under this heading: Provided further, That of the
funds made available under this heading, $20,000,000 shall be for
highway surface transportation and technology training under section
140(b) of title 23, United States Code, and $20,000,000 shall be for
disadvantaged business enterprises bonding assistance under section
332(e) of title 49, United States Code: Provided further, That funds
made available under this heading shall be administered as if
apportioned under chapter 1 of title 23, United States Code, except for
funds made available for investments in transportation at Indian
reservations and Federal lands, and for the territorial highway
program, which shall be administered in accordance with chapter 2 of
title 23, United States Code, and except for funds made available for
disadvantaged business enterprises bonding assistance, which shall be
administered in accordance with chapter 3 of title 49, United States
Code: Provided further, That the Federal share payable on account of
any project or activity carried out with funds made available under
this heading shall be, at the option of the recipient, up to 100
percent of the total cost thereof: Provided further, That funds made
available by this Act shall not be obligated for the purposes
authorized under section 115(b) of title 23, United States Code:
Provided further, That funding provided under this heading shall be in
addition to any and all funds provided for fiscal years 2009 and 2010
in any other Act for ``Federal-aid Highways'' and shall not affect the
distribution of funds provided for ``Federal-aid Highways'' in any
other Act: Provided further, That the amount made available under this
heading shall not be subject to any limitation on obligations for
Federal-aid highways or highway safety construction programs set forth
in any Act: Provided further, That section 1101(b) of Public Law 109-59
shall apply to funds apportioned under this heading: Provided further,
That the Administrator of the Federal Highway Administration may retain
up to $40,000,000 of the funds provided under this heading to fund the
oversight by the Administrator of projects and activities carried out
with funds made available to the Federal Highway Administration in this
Act, and such funds shall be available through September 30, 2012.
Federal Railroad Administration
Capital Assistance for High Speed Rail Corridors and Intercity
Passenger Rail Service
For an additional amount for section 501 of Public Law 110-432 and
discretionary grants to States to pay for the cost of projects
described in paragraphs (2)(A) and (2)(B) of section 24401 of title 49,
United States Code, subsection (b) of section 24105 of such title,
$8,000,000,000, to remain available through September 30, 2012:
Provided, That the Secretary of Transportation shall give priority to
projects that support the development of intercity high speed rail
service: Provided further, That within 60 days of the enactment of this
Act, the Secretary shall submit to the House and Senate Committees on
Appropriations a strategic plan that describes how the Secretary will
use the funding provided under this heading to improve and deploy high
speed passenger rail systems: Provided further, That within 120 days of
enactment of this Act, the Secretary shall issue interim guidance to
applicants covering grant terms, conditions, and procedures until final
regulations are issued: Provided further, That such interim guidance
shall provide separate instructions for the high speed rail corridor
program, capital assistance for intercity passenger rail service
grants, and congestion grants: Provided further, That the Secretary
shall waive the requirement that a project conducted using funds
provided under this heading be in a State rail plan developed under
chapter 227 of title 49, United States Code: Provided further, That the
Federal share payable of the costs for which a grant is made under this
heading shall be, at the option of the recipient, up to 100 percent:
Provided further, That projects conducted using funds provided under
this heading must comply with the requirements of subchapter IV of
chapter 31 of title 40, United States Code: Provided further, That
section 24405 of title 49, United States Code, shall apply to funds
provided under this heading: Provided further, That the Administrator
of the Federal Railroad Administration may retain up to one-quarter of
1 percent of the funds provided under this heading to fund the award
and oversight by the Administrator of grants made under this heading,
and funds retained for said purposes shall remain available through
September 30, 2014.
capital grants to the national railroad passenger corporation
For an additional amount for the National Railroad Passenger
Corporation (Amtrak) to enable the Secretary of Transportation to make
capital grants to Amtrak as authorized by section 101(c) of the
Passenger Rail Investment and Improvement Act of 2008 (Public Law 110-
432), $1,300,000,000, to remain available through September 30, 2010,
of which $450,000,000 shall be used for capital security grants:
Provided, That priority for the use of non-security funds shall be
given to projects for the repair, rehabilitation, or upgrade of
railroad assets or infrastructure, and for capital projects that expand
passenger rail capacity including the rehabilitation of rolling stock:
Provided further, That none of the funds under this heading shall be
used to subsidize the operating losses of Amtrak: Provided further,
That funds provided under this heading shall be awarded not later than
30 days after the date of enactment of this Act: Provided further, That
the Secretary shall take measures to ensure that projects funded under
this heading shall be completed within 2 years of enactment of this
Act, and shall serve to supplement and not supplant planned
expenditures for such activities from other Federal, State, local and
corporate sources: Provided further, That the Secretary shall certify
to the House and Senate Committees on Appropriations in writing
compliance with the preceding proviso: Provided further, That not more
than 60 percent of the funds provided for non-security activities under
this heading may be used for capital projects along the Northeast
Corridor: Provided further, That of the funding provided under this
heading, $5,000,000 shall be made available for the Amtrak Office of
Inspector General and made available through September 30, 2013.
Federal Transit Administration
transit capital assistance
For an additional amount for transit capital assistance grants
authorized under section 5302(a)(1) of title 49, United States Code,
$6,900,000,000, to remain available through September 30, 2010:
Provided, That the Secretary of Transportation shall provide 80 percent
of the funds appropriated under this heading for grants under section
5307 of title 49, United States Code, and apportion such funds in
accordance with section 5336 of such title (other than subsections
(i)(1) and (j)): Provided further, That the Secretary shall apportion
10 percent of the funds appropriated under this heading in accordance
with section 5340 of such title: Provided further, That the Secretary
shall provide 10 percent of the funds appropriated under this heading
for grants under section 5311 of title 49, United States Code, and
apportion such funds in accordance with such section: Provided further,
That funds apportioned under this heading shall be apportioned not
later than 21 days after the date of enactment of this Act: Provided
further, That 180 days following the date of such apportionment, the
Secretary shall withdraw from each urbanized area or State an amount
equal to 50 percent of the funds apportioned to such urbanized areas or
States less the amount of funding obligated, and the Secretary shall
redistribute such amounts to other urbanized areas or States that have
had no funds withdrawn under this proviso utilizing whatever method he
deems appropriate to ensure that all funds redistributed under this
proviso shall be utilized promptly: Provided further, That 1 year
following the date of such apportionment, the Secretary shall withdraw
from each urbanized area or State any unobligated funds, and the
Secretary shall redistribute such amounts to other urbanized areas or
States that have had no funds withdrawn under this proviso utilizing
whatever method he deems appropriate to ensure that all funds
redistributed under this proviso shall be utilized promptly: Provided
further, That at the request of an urbanized area or State, the
Secretary of Transportation may provide an extension of such 1-year
period if he feels satisfied that the urbanized area or State has
encountered an unworkable bidding environment or other extenuating
circumstances: Provided further, That before granting such an
extension, the Secretary shall send a letter to the House and Senate
Committees on Appropriations that provides a thorough justification for
the extension: Provided further, That of the funds provided for section
5311 of title 49, United States Code, 2.5 percent shall be made
available for section 5311(c)(1): Provided further, That of the funding
provided under this heading, $100,000,000 shall be distributed as
discretionary grants to public transit agencies for capital investments
that will assist in reducing the energy consumption or greenhouse gas
emissions of their public transportation systems: Provided further,
That for such grants on energy-related investments, priority shall be
given to projects based on the total energy savings that are projected
to result from the investment, and projected energy savings as a
percentage of the total energy usage of the public transit agency:
Provided further, That applicable chapter 53 requirements shall apply
to funding provided under this heading, except that the Federal share
of the costs for which any grant is made under this heading shall be,
at the option of the recipient, up to 100 percent: Provided further,
That the amount made available under this heading shall not be subject
to any limitation on obligations for transit programs set forth in any
Act: Provided further, That section 1101(b) of Public Law 109-59 shall
apply to funds appropriated under this heading: Provided further, That
the funds appropriated under this heading shall not be comingled with
any prior year funds: Provided further, That notwithstanding any other
provision of law, three-quarters of 1 percent of the funds provided for
grants under section 5307 and section 5340, and one-half of 1 percent
of the funds provided for grants under section 5311, shall be available
for administrative expenses and program management oversight, and such
funds shall be available through September 30, 2012.
fixed guideway infrastructure investment
For an amount for capital expenditures authorized under section
5309(b)(2) of title 49, United States Code, $750,000,000, to remain
available through September 30, 2010: Provided, That the Secretary of
Transportation shall apportion funds under this heading pursuant to the
formula set forth in section 5337 of title 49, United States Code:
Provided further, That the funds appropriated under this heading shall
not be commingled with any prior year funds: Provided further, That
funds made available under this heading shall be apportioned not later
than 21 days after the date of enactment of this Act: Provided further,
That 180 days following the date of such apportionment, the Secretary
shall withdraw from each urbanized area an amount equal to 50 percent
of the funds apportioned to such urbanized area less the amount of
funding obligated, and the Secretary shall redistribute such amounts to
other urbanized areas that have had no funds withdrawn under this
proviso utilizing whatever method he or she deems appropriate to ensure
that all funds redistributed under this proviso shall be utilized
promptly: Provided further, That 1 year following the date of such
apportionment, the Secretary shall withdraw from each urbanized area
any unobligated funds, and the Secretary shall redistribute such
amounts to other urbanized areas that have had no funds withdrawn under
this proviso utilizing whatever method he or she deems appropriate to
ensure that all funds redistributed under this proviso shall be
utilized promptly: Provided further, That at the request of an
urbanized area, the Secretary of Transportation may provide an
extension of such 1-year period if he or she feels satisfied that the
urbanized area has encountered an unworkable bidding environment or
other extenuating circumstances: Provided further, That before granting
such an extension, the Secretary shall send a letter to the House and
Senate Committees on Appropriations that provides a thorough
justification for the extension: Provided further, That applicable
chapter 53 requirements shall apply except that the Federal share of
the costs for which a grant is made under this heading shall be, at the
option of the recipient, up to 100 percent: Provided further, That the
provisions of section 1101(b) of Public Law 109-59 shall apply to funds
made available under this heading: Provided further, That
notwithstanding any other provision of law, up to 1 percent of the
funds under this heading shall be available for administrative expenses
and program management oversight and shall remain available for
obligation until September 30, 2012.
capital investment grants
For an additional amount for ``Capital Investment Grants'', as
authorized under section 5338(c)(4) of title 49, United States Code,
and allocated under section 5309(m)(2)(A) of such title, to enable the
Secretary of Transportation to make discretionary grants as authorized
by section 5309(d) and (e) of such title, $750,000,000, to remain
available through September 30, 2010: Provided, That such amount shall
be allocated without regard to the limitation under section
5309(m)(2)(A)(i): Provided further, That in selecting projects to be
funded, priority shall be given to projects that are currently in
construction or are able to obligate funds within 150 days of enactment
of this Act: Provided further, That the provisions of section 1101(b)
of Public Law 109-59 shall apply to funds made available under this
heading: Provided further, That funds appropriated under this heading
shall not be commingled with any prior year funds: Provided further,
That applicable chapter 53 requirements shall apply, except that
notwithstanding any other provision of law, up to 1 percent of the
funds provided under this heading shall be available for administrative
expenses and program management oversight, and shall remain available
through September 30, 2012.
Maritime Administration
supplemental grants for assistance to small shipyards
To make grants to qualified shipyards as authorized under section
3508 of Public Law 110-417 or section 54101 of title 46, United States
Code, $100,000,000, to remain available through September 30, 2010:
Provided, That the Secretary of Transportation shall institute measures
to ensure that funds provided under this heading shall be obligated
within 180 days of the date of their distribution: Provided further,
That the Maritime Administrator may retain and transfer to ``Maritime
Administration, Operations and Training'' up to 2 percent of the funds
provided under this heading to fund the award and oversight by the
Administrator of grants made under this heading.
Office of Inspector General
salaries and expenses
For an additional amount for necessary expenses of the Office of
Inspector General to carry out the provisions of the Inspector General
Act of 1978, as amended, $20,000,000, to remain available through
September 30, 2013: Provided, That the funding made available under
this heading shall be used for conducting audits and investigations of
projects and activities carried out with funds made available in this
Act to the Department of Transportation: Provided further, That the
Inspector General shall have all necessary authority, in carrying out
the duties specified in the Inspector General Act, as amended (5 U.S.C.
App. 3), to investigate allegations of fraud, including false
statements to the Government (18 U.S.C. 1001), by any person or entity
that is subject to regulation by the Department.
GENERAL PROVISION--DEPARTMENT OF TRANSPORTATION
Sec. 1201. (a) Maintenance of Effort.--Not later than 30 days after
the date of enactment of this Act, for each amount that is distributed
to a State or agency thereof from an appropriation in this Act for a
covered program, the Governor of the State shall certify to the
Secretary of Transportation that the State will maintain its effort
with regard to State funding for the types of projects that are funded
by the appropriation. As part of this certification, the Governor shall
submit to the Secretary of Transportation a statement identifying the
amount of funds the State planned to expend from State sources as of
the date of enactment of this Act during the period beginning on the
date of enactment of this Act through September 30, 2010, for the types
of projects that are funded by the appropriation.
(b) Failure To Maintain Effort.--
If a State is unable to maintain the level of effort certified
pursuant to subsection (a), the State will be prohibited by the
Secretary of Transportation from receiving additional limitation
pursuant to the redistribution of the limitation on obligations for
Federal-aid highway and highway safety construction programs that
occurs after August 1 for fiscal year 2011.
(c) Periodic Reports.--
(1) In general.--Notwithstanding any other provision of law,
each grant recipient shall submit to the covered agency from which
they received funding periodic reports on the use of the funds
appropriated in this Act for covered programs. Such reports shall
be collected and compiled by the covered agency and transmitted to
Congress. Covered agencies may develop such reports on behalf of
grant recipients to ensure the accuracy and consistency of such
reports.
(2) Contents of Reports.--For amounts received under each
covered program by a grant recipient under this Act, the grant
recipient shall include in the periodic reports information
tracking-
(A) the amount of Federal funds appropriated, allocated,
obligated, and outlayed under the appropriation;
(B) the number of projects that have been put out to bid
under the appropriation and the amount of Federal funds
associated with such projects;
(C) the number of projects for which contracts have been
awarded under the appropriation and the amount of Federal funds
associated with such contracts;
(D) the number of projects for which work has begun under
such contracts and the amount of Federal funds associated with
such contracts;
(E) the number of projects for which work has been
completed under such contracts and the amount of Federal funds
associated with such contracts;
(F) the number of direct, on-project jobs created or
sustained by the Federal funds provided for projects under the
appropriation and, to the extent possible, the estimated
indirect jobs created or sustained in the associated supplying
industries, including the number of job-years created and the
total increase in employment since the date of enactment of
this Act; and
(G) for each covered program report information tracking
the actual aggregate expenditures by each grant recipient from
State sources for projects eligible for funding under the
program during the period beginning on the date of enactment of
this Act through September 30, 2010, as compared to the level
of such expenditures that were planned to occur during such
period as of the date of enactment of this Act.
(3) Timing of Reports.--Each grant recipient shall submit the
first of the periodic reports required under this subsection not
later than 90 days after the date of enactment of this Act and
shall submit updated reports not later than 180 days, 1 year, 2
years, and 3 years after such date of enactment.
(d) Definitions.--In this section, the following definitions apply:
(1) Covered Agency.--The term ``covered agency'' means the
Office of the Secretary of Transportation, the Federal Aviation
Administration, the Federal Highway Administration, the Federal
Railroad Administration, the Federal Transit Administration and the
Maritime Administration of the Department of Transportation.
(2) Covered Program.--The term ``covered program'' means funds
appropriated in this Act for ``Supplemental Discretionary Grants
for a National Surface Transportation System'' to the Office of the
Secretary of Transportation, for ``Supplemental Funding for
Facilities and Equipment'' and ``Grants-in-Aid for Airports'' to
the Federal Aviation Administration; for ``Highway Infrastructure
Investment'' to the Federal Highway Administration; for ``Capital
Assistance for High Speed Rail Corridors and Intercity Passenger
Rail Service'' and ``Capital Grants to the National Railroad
Passenger Corporation'' to the Federal Railroad Administration; for
``Transit Capital Assistance'', ``Fixed Guideway Infrastructure
Investment'', and ``Capital Investment Grants'' to the Federal
Transit Administration; and ``Supplemental Grants for Assistance to
Small Shipyards'' to the Maritime Administration.
(3) Grant recipient.--The term ``grant recipient'' means a
State or other recipient of assistance provided under a covered
program in this Act. Such term does not include a Federal
department or agency.
(e) Notwithstanding any other provision of law, sections 3501-3521
of title 44, United States Code, shall not apply to the provisions of
this section.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Public and Indian Housing
public housing capital fund
For an additional amount for the ``Public Housing Capital Fund'' to
carry out capital and management activities for public housing
agencies, as authorized under section 9 of the United States Housing
Act of 1937 (42 U.S.C. 1437g) (the ``Act''), $4,000,000,000, to remain
available until September 30, 2011: Provided, That the Secretary of
Housing and Urban Development shall distribute $3,000,000,000 of this
amount by the same formula used for amounts made available in fiscal
year 2008, except that the Secretary may determine not to allocate
funding to public housing agencies currently designated as troubled or
to public housing agencies that elect not to accept such funding:
Provided further, That the Secretary shall obligate funds allocated by
formula within 30 days of enactment of this Act: Provided further, That
the Secretary shall make available $1,000,000,000 by competition for
priority investments, including investments that leverage private
sector funding or financing for renovations and energy conservation
retrofit investments: Provided further, That the Secretary shall
obligate competitive funding by September 30, 2009: Provided further,
That public housing authorities shall give priority to capital projects
that can award contracts based on bids within 120 days from the date
the funds are made available to the public housing authorities:
Provided further, That public housing agencies shall give priority
consideration to the rehabilitation of vacant rental units: Provided
further, That public housing agencies shall prioritize capital projects
that are already underway or included in the 5-year capital fund plans
required by the Act (42 U.S.C. 1437c-1(a)): Provided further, That
notwithstanding any other provision of law, (1) funding provided under
this heading may not be used for operating or rental assistance
activities, and (2) any restriction of funding to replacement housing
uses shall be inapplicable: Provided further, That notwithstanding any
other provision of law, the Secretary shall institute measures to
ensure that funds provided under this heading shall serve to supplement
and not supplant expenditures from other Federal, State, or local
sources or funds independently generated by the grantee: Provided
further, That notwithstanding section 9(j), public housing agencies
shall obligate 100 percent of the funds within 1 year of the date on
which funds become available to the agency for obligation, shall expend
at least 60 percent of funds within 2 years of the date on which funds
become available to the agency for obligation, and shall expend 100
percent of the funds within 3 years of such date: Provided further,
That if a public housing agency fails to comply with the 1-year
obligation requirement, the Secretary shall recapture all remaining
unobligated funds awarded to the public housing agency and reallocate
such funds to agencies that are in compliance with those requirements:
Provided further, That if a public housing agency fails to comply with
either the 2-year or the 3-year expenditure requirement, the Secretary
shall recapture the balance of the funds awarded to the public housing
agency and reallocate such funds to agencies that are in compliance
with those requirements: Provided further, That in administering funds
appropriated or otherwise made available under this heading, the
Secretary may waive or specify alternative requirements for any
provision of any statute or regulation in connection with the
obligation by the Secretary or the use of these funds (except for
requirements related to fair housing, nondiscrimination, labor
standards, and the environment), upon a finding that such a waiver is
necessary to expedite or facilitate the use of such funds: Provided
further, That, in addition to waivers authorized under the previous
proviso, the Secretary may direct that requirements relating to the
procurement of goods and services arising under state and local laws
and regulations shall not apply to amounts made available under this
heading: Provided further, That of the funds made available under this
heading, up to .5 percent shall be available for staffing, training,
technical assistance, technology, monitoring, travel, enforcement,
research and evaluation activities: Provided further, That funds set
aside in the previous proviso shall remain available until September
30, 2012: Provided further, That any funds made available under this
heading used by the Secretary for personnel expenses related to
administering funding under this heading shall be transferred to
``Personnel Compensation and Benefits, Office of Public and Indian
Housing'' and shall retain the terms and conditions of this account,
including reprogramming provisions, except that the period of
availability set forth in the previous proviso shall govern such
transferred funds: Provided further, That any funds made available
under this heading used by the Secretary for training or other
administrative expenses shall be transferred to ``Administration,
Operations, and Management'', for non-personnel expenses of the
Department of Housing and Urban Development: Provided further, That any
funds made available under this heading used by the Secretary for
technology shall be transferred to ``Working Capital Fund''.
Native American Housing Block Grants
For an additional amount for ``Native American Housing Block
Grants'', as authorized under title I of the Native American Housing
Assistance and Self-Determination Act of 1996 (``NAHASDA'') (25 U.S.C.
4111 et seq.), $510,000,000 to remain available until September 30,
2011: Provided, That $255,000,000 of the amount provided under this
heading shall be distributed according to the same funding formula used
in fiscal year 2008: Provided further, That the Secretary shall
obligate funds allocated by formula within 30 days of enactment of this
Act: Provided further, That the amounts distributed through the formula
shall be used for new construction, acquisition, rehabilitation
including energy efficiency and conservation, and infrastructure
development: Provided further, That in selecting projects to be funded,
recipients shall give priority to projects for which contracts can be
awarded within 180 days from the date that funds are available to the
recipients: Provided further, that the Secretary may obligate
$255,000,000 of the amount provided under this heading for competitive
grants to eligible entities that apply for funds authorized under
NAHASDA: Provided further, That the Secretary shall obligate
competitive funding by September 30, 2009: Provided further, That in
awarding competitive funds, the Secretary shall give priority to
projects that will spur construction and rehabilitation and will create
employment opportunities for low-income and unemployed persons:
Provided further, That recipients of funds under this heading shall
obligate 100 percent of such funds within 1 year of the date funds are
made available to a recipient, expend at least 50 percent of such funds
within 2 years of the date on which funds become available to such
recipients for obligation and expend 100 percent of such funds within 3
years of such date: Provided further, That if a recipient fails to
comply with the 2-year expenditure requirement, the Secretary shall
recapture all remaining funds awarded to the recipient and reallocate
such funds through the funding formula to recipients that are in
compliance with these requirements: Provided further, That if a
recipient fails to comply with the 3-year expenditure requirement, the
Secretary shall recapture the balance of the funds originally awarded
to the recipient: Provided further, That notwithstanding any other
provision of law, the Secretary may set aside up to 2 percent of funds
made available under this paragraph for a housing entity eligible to
receive funding under title VIII of NAHASDA (25 U.S.C. 4221 et seq.):
Provided further, That in administering funds appropriated or otherwise
made available under this heading, the Secretary may waive or specify
alternative requirements for any provision of any statute or regulation
in connection with the obligation by the Secretary or the use of these
funds (except for requirements related to fair housing,
nondiscrimination, labor standards, and the environment), upon a
finding that such a waiver is necessary to expedite or facilitate the
use of such funds: Provided further, That of the funds made available
under this heading, up to .5 percent shall be available for staffing,
training, technical assistance, technology, monitoring, travel,
enforcement, research and evaluation activities: Provided further, That
funds set aside in the previous proviso shall remain available until
September 30, 2012: Provided further, That any funds made available
under this heading used by the Secretary for personnel expenses related
to administering funding under this heading shall be transferred to
``Personnel Compensation and Benefits, Office of Public and Indian
Housing'' and shall retain the terms and conditions of this account,
including reprogramming provisions, except that the period of
availability set forth in the previous proviso shall govern such
transferred funds: Provided further, That any funds made available
under this heading used by the Secretary for training or other
administrative expenses shall be transferred to ``Administration,
Operations, and Management'', for non-personnel expenses of the
Department of Housing and Urban Development: Provided further, That any
funds made available under this heading used by the Secretary for
technology shall be transferred to ``Working Capital Fund''.
Community Planning and Development
community development fund
For an additional amount for ``Community Development Fund''
$1,000,000,000, to remain available until September 30, 2010 to carry
out the community development block grant program under title I of the
Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.):
Provided, That the amount appropriated in this paragraph shall be
distributed pursuant to 42 U.S.C. 5306 to grantees that received
funding in fiscal year 2008: Provided further, That in administering
the funds appropriated in this paragraph, the Secretary of Housing and
Urban Development shall establish requirements to expedite the use of
the funds: Provided further, That in selecting projects to be funded,
recipients shall give priority to projects that can award contracts
based on bids within 120 days from the date the funds are made
available to the recipients: Provided further, That in administering
funds appropriated or otherwise made available under this heading, the
Secretary may waive or specify alternative requirements for any
provision of any statute or regulation in connection with the
obligation by the Secretary or the use by the recipient of these funds
(except for requirements related to fair housing, nondiscrimination,
labor standards, and the environment), upon a finding that such waiver
is necessary to expedite or facilitate the timely use of such funds and
would not be inconsistent with the overall purpose of the statute.
For the provision of emergency assistance for the redevelopment of
abandoned and foreclosed homes, as authorized under division B, title
III of the Housing and Economic Recovery Act of 2008 (``the Act'')
(Public Law 110-289) (42 U.S.C. 5301 note), $2,000,000,000, to remain
available until September 30, 2010: Provided, That grantees shall
expend at least 50 percent of allocated funds within 2 years of the
date funds become available to the grantee for obligation, and 100
percent of such funds within 3 years of such date: Provided further,
That unless otherwise noted herein, the provisions of the Act govern
the use of the additional funds made available under this heading:
Provided further, That notwithstanding the provisions of sections
2301(b) and (c)(1) and section 2302 of the Act, funding under this
paragraph shall be allocated by competitions for which eligible
entities shall be States, units of general local government, and
nonprofit entities or consortia of nonprofit entities, which may submit
proposals in partnership with for profit entities: Provided further,
That in selecting grantees, the Secretary of Housing and Urban
Development shall ensure that the grantees are in areas with the
greatest number and percentage of foreclosures and can expend funding
within the period allowed under this heading: Provided further, That
additional award criteria for such competitions shall include
demonstrated grantee capacity to execute projects, leveraging
potential, concentration of investment to achieve neighborhood
stabilization, and any additional factors determined by the Secretary
of Housing and Urban Development: Provided further, That the Secretary
may establish a minimum grant size: Provided further, That the
Secretary shall publish criteria on which to base competition for any
grants awarded under this heading not later than 75 days after the
enactment of this Act and applications shall be due to HUD not later
than 150 days after the enactment of this Act: Provided further, That
the Secretary shall obligate all funding within 1 year of enactment of
this Act: Provided further, That section 2301(d)(4) of the Act is
repealed: Provided further, That section 2301(c)(3)(C) of the Act is
amended to read ``establish and operate land banks for homes and
residential properties that have been foreclosed upon'': Provided
further, That funding used for section 2301(c)(3)(E) of the Act shall
be available only for the redevelopment of demolished or vacant
properties as housing: Provided further, That no amounts made available
from a grant under this heading may be used to demolish any public
housing (as such term is defined in section 3 of the United States
Housing Act of 1937 (42 U.S.C. 1437a)): Provided further, That a
grantee may not use more than 10 percent of its grant under this
heading for demolition activities under section 2301(c)(3)(C) and (D)
unless the Secretary determines that such use represents an appropriate
response to local market conditions: Provided further, That the
recipient of any grant or loan from amounts made available under this
heading or, after the date of enactment under division B, title III of
the Housing and Economic Recovery Act of 2008, may not refuse to lease
a dwelling unit in housing with such loan or grant to a participant
under section 8 of the United States Housing Act of 1937 (42 U.S.C
1437f) because of the status of the prospective tenant as such a
participant: Provided further, That in addition to the eligible uses in
section 2301, the Secretary may also use up to 10 percent of the funds
provided under this heading for grantees for the provision of capacity
building of and support for local communities receiving funding under
section 2301 of the Act or under this heading: Provided further, That
in administering funds appropriated or otherwise made available under
this section, the Secretary may waive or specify alternative
requirements for any provision of any statute or regulation in
connection with the obligation by the Secretary or the use of funds
except for requirements related to fair housing, nondiscrimination,
labor standards and the environment, upon a finding that such a waiver
is necessary to expedite or facilitate the use of such funds: Provided
further, That in the case of any acquisition of a foreclosed upon
dwelling or residential real property acquired after the date of
enactment with any amounts made available under this heading or under
division B, title III of the Housing and Economic Recovery Act of 2008
(Public Law 110-289), the initial successor in interest in such
property pursuant to the foreclosure shall assume such interest subject
to: (1) the provision by such successor in interest of a notice to
vacate to any bona fide tenant at least 90 days before the effective
date of such notice; and (2) the rights of any bona fide tenant, as of
the date of such notice of foreclosure: (A) under any bona fide lease
entered into before the notice of foreclosure to occupy the premises
until the end of the remaining term of the lease, except that a
successor in interest may terminate a lease effective on the date of
sale of the unit to a purchaser who will occupy the unit as a primary
residence, subject to the receipt by the tenant of the 90-day notice
under this paragraph; or (B) without a lease or with a lease terminable
at will under State law, subject to the receipt by the tenant of the
90-day notice under this paragraph, except that nothing in this
paragraph shall affect the requirements for termination of any Federal-
or State-subsidized tenancy or of any State or local law that provides
longer time periods or other additional protections for tenants:
Provided further, That, for purposes of this paragraph, a lease or
tenancy shall be considered bona fide only if: (1) the mortgagor under
the contract is not the tenant; (2) the lease or tenancy was the result
of an arms-length transaction; and (3) the lease or tenancy requires
the receipt of rent that is not substantially less than fair market
rent for the property: Provided further, That the recipient of any
grant or loan from amounts made available under this heading or, after
the date of enactment, under division B, title III of the Housing and
Economic Recovery Act of 2008 (Public Law 110-289) may not refuse to
lease a dwelling unit in housing assisted with such loan or grant to a
holder of a voucher or certificate of eligibility under section 8 of
the United States Housing Act of 1937 (42 U.S.C. 1437f) because of the
status of the prospective tenant as such a holder: Provided further,
That in the case of any qualified foreclosed housing for which funds
made available under this heading or, after the date of enactment,
under division B, title III of the Housing and Economic Recovery Act of
2008 (Public Law 110-289) are used and in which a recipient of
assistance under section 8(o) of the U.S. Housing Act of 1937 resides
at the time of foreclosure, the initial successor in interest shall be
subject to the lease and to the housing assistance payments contract
for the occupied unit: Provided further, That vacating the property
prior to sale shall not constitute good cause for termination of the
tenancy unless the property is unmarketable while occupied or unless
the owner or subsequent purchaser desires the unit for personal or
family use: Provided further, That if a public housing agency is unable
to make payments under the contract to the immediate successor in
interest after foreclosures, due to (1) an action or inaction by the
successor in interest, including the rejection of payments or the
failure of the successor to maintain the unit in compliance with
section 8(o)(8) of the United States Housing Act of 1937 (42
U.S.C.1437f) or (2) an inability to identify the successor, the agency
may use funds that would have been used to pay the rental amount on
behalf of the family--(i) to pay for utilities that are the
responsibility of the owner under the lease or applicable law, after
taking reasonable steps to notify the owner that it intends to make
payments to a utility provider in lieu of payments to the owner, except
prior notification shall not be required in any case in which the unit
will be or has been rendered uninhabitable due to the termination or
threat of termination of service, in which case the public housing
agency shall notify the owner within a reasonable time after making
such payment; or (ii) for the family's reasonable moving costs,
including security deposit costs: Provided further, That this paragraph
shall not preempt any Federal, State or local law that provides more
protections for tenants: Provided further, That of the funds made
available under this heading, up to 1 percent shall be available for
staffing, training, technical assistance, technology, monitoring,
travel, enforcement, research and evaluation activities: Provided
further, That funds set aside in the previous proviso shall remain
available until September 30, 2012: Provided further, That any funds
made available under this heading used by the Secretary for personnel
expenses related to administering funding under this heading shall be
transferred to ``Personnel Compensation and Benefits, Community
Planning and Development'' and shall retain the terms and conditions of
this account, including reprogramming provisions, except that the
period of availability set forth in the previous proviso shall govern
such transferred funds: Provided further, That any funds made available
under this heading used by the Secretary for training or other
administrative expenses shall be transferred to ``Administration,
Operations, and Management'' for non-personnel expenses of the
Department of Housing and Urban Development: Provided further, That any
funds made available under this heading used by the Secretary for
technology shall be transferred to ``Working Capital Fund''.
home investment partnerships program
For an additional amount for capital investments in low-income
housing tax credit projects, $2,250,000,000, to remain available until
September 30, 2011: Provided, That such funds shall be made available
to State housing credit agencies, as defined in section 42(h) of the
Internal Revenue Code of 1986, and shall be apportioned among the
States based on the percentage of HOME funds apportioned to each State
and the participating jurisdictions therein for Fiscal Year 2008:
Provided further, That the housing credit agencies in each State shall
distribute these funds competitively under this heading and pursuant to
their qualified allocation plan (as defined in section 42(m) of the
Internal Revenue Code of 1986) to owners of projects who have received
or receive simultaneously an award of low-income housing tax credits
under section 42(h) of the Internal Revenue Code of 1986: Provided
further, That housing credit agencies in each State shall commit not
less than 75 percent of such funds within one year of the date of
enactment of this Act, and shall demonstrate that the project owners
shall have expended 75 percent of the funds made available under this
heading within two years of the date of enactment of this Act, and
shall have expended 100 percent of the funds within 3 years of the date
of enactment of this Act: Provided further, That failure by an owner to
expend funds within the parameters required within the previous proviso
shall result in a redistribution of these funds by a housing credit
agency to a more deserving project in such State, except any funds not
expended after 3 years from enactment shall be redistributed by the
Secretary to other States that have fully utilized the funds made
available to them: Provided further, That projects awarded low income
housing tax credits under section 42(h) of the IRC of 1986 in fiscal
years 2007, 2008, or 2009 shall be eligible for funding under this
heading: Provided further, That housing credit agencies shall give
priority to projects that are expected to be completed within 3 years
of enactment: Provided further, That any assistance provided to an
eligible low income housing tax credit project under this heading shall
be made in the same manner and be subject to the same limitations
(including rent, income, and use restrictions, in lieu of corresponding
limitations under the HOME program) as required by the state housing
credit agency with respect to an award of low income housing credits
under section 42 of the IRC of 1986: Provided further, That the housing
credit agency shall perform asset management functions, or shall
contract for the performance of such services, in either case, at the
owner's expense, to ensure compliance with section 42 of the IRC of
1986, and the long term viability of buildings funded by assistance
under this heading: Provided further, That the term eligible basis (as
such term is defined in such section 42) of a qualified low-income
housing tax credit building receiving assistance under this heading
shall not be reduced by the amount of any grant described under this
heading: Provided further, That the Secretary shall be given access
upon reasonable notice to a State housing credit agency to information
related to the award of Federal funds from such housing credit agency
pursuant to this heading and shall establish an Internet site that
shall identify all projects selected for an award, including the amount
of the award and such site shall provide linkage to the housing credit
agency allocation plan which describes the process that was used to
make the award decision: Provided further, That in administering funds
under this heading, the Secretary may waive any provision of any
statute or regulation that the Secretary administers in connection with
the obligation by the Secretary or the use by the recipient of these
funds except for requirements imposed by this heading and requirements
related to fair housing, non-discrimination, labor standards and the
environment, upon a finding that such waiver is required to expedite
the use of such funds: Provided further, That for purposes of
environmental compliance review, funds under this heading that are made
available to State housing credit agencies for distribution to projects
awarded low income housing tax credits shall be treated as funds under
the HOME program and shall be subject to Section 288 of the HOME
Investment Partnership Act.
homelessness prevention fund
For homelessness prevention and rapid re-housing activities,
$1,500,000,000, to remain available until September 30, 2011: Provided,
That funds provided under this heading shall be used for the provision
of short-term or medium-term rental assistance; housing relocation and
stabilization services including housing search, mediation or outreach
to property owners, credit repair, security or utility deposits,
utility payments, rental assistance for a final month at a location,
moving cost assistance, and case management; or other appropriate
activities for homelessness prevention and rapid re-housing of persons
who have become homeless: Provided further, That grantees receiving
such assistance shall collect data on the use of the funds awarded and
persons served with this assistance in the HUD Homeless Management
Information System (``HMIS'') or other comparable database: Provided
further, That grantees may use up to 5 percent of any grant for
administrative costs: Provided further, That funding made available
under this heading shall be allocated to eligible grantees (as defined
and designated in sections 411 and 412 of subtitle B of title IV of the
McKinney-Vento Homeless Assistance Act, (the ``Act'')) pursuant to the
formula authorized by section 413 of the Act: Provided further, That
the Secretary may establish a minimum grant size: Provided further,
That grantees shall expend at least 60 percent of funds within 2 years
of the date that funds became available to them for obligation, and 100
percent of funds within 3 years of such date, and the Secretary may
recapture unexpended funds in violation of the 2-year expenditure
requirement and reallocate such funds to grantees in compliance with
that requirement: Provided further, That the Secretary may waive
statutory or regulatory provisions (except provisions for fair housing,
nondiscrimination, labor standards, and the environment) necessary to
facilitate the timely expenditure of funds: Provided further, That the
Secretary shall publish a notice to establish such requirements as may
be necessary to carry out the provisions of this section within 30 days
of enactment of this Act and that this notice shall take effect upon
issuance: Provided further, That of the funds provided under this
heading, up to .5 percent shall be available for staffing, training,
technical assistance, technology, monitoring, research and evaluation
activities: Provided further, That funds set aside under the previous
proviso shall remain available until September 30, 2012: Provided
further, That any funds made available under this heading used by the
Secretary for personnel expenses related to administering funding under
this heading shall be transferred to ``Community Planning and
Development Personnel Compensation and Benefits'' and shall retain the
terms and conditions of this account including reprogramming provisions
except that the period of availability set forth in the previous
proviso shall govern such transferred funds: Provided further, That any
funds made available under this heading used by the Secretary for
training or other administrative expenses shall be transferred to
``Administration, Operations, and Management'' for non-personnel
expenses of the Department of Housing and Urban Development: Provided
further, That any funding made available under this heading used by the
Secretary for technology shall be transferred to ``Working Capital
Fund.''
Housing Programs
assisted housing stability and energy and green retrofit investments
For assistance to owners of properties receiving project-based
assistance pursuant to section 202 of the Housing Act of 1959 (12
U.S.C. 17012), section 811 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013), or section 8 of the United States Housing
Act of 1937 as amended (42 U.S.C. 1437f), $2,250,000,000, of which
$2,000,000,000 shall be for an additional amount for paragraph (1)
under the heading ``Project-Based Rental Assistance'' in Public Law
110-161 for payments to owners for 12-month periods, and of which
$250,000,000 shall be for grants or loans for energy retrofit and green
investments in such assisted housing: Provided, That projects funded
with grants or loans provided under this heading must comply with the
requirements of subchapter IV of chapter 31 of title 40, United States
Code: Provided further, That such grants or loans shall be provided
through the policies, procedures, contracts, and transactional
infrastructure of the authorized programs administered by the Office of
Affordable Housing Preservation of the Department of Housing and Urban
Development, on such terms and conditions as the Secretary of Housing
and Urban Development deems appropriate to ensure the maintenance and
preservation of the property, the continued operation and maintenance
of energy efficiency technologies, and the timely expenditure of funds:
Provided further, That the Secretary may provide incentives to owners
to undertake energy or green retrofits as a part of such grant or loan
terms, including, but not limited to, fees to cover investment
oversight and implementation by said owner, or to encourage job
creation for low-income or very low-income individuals: Provided
further, That the Secretary may share in a portion of future property
utility savings resulting from improvements made by grants or loans
made available under this heading: Provided further, That the grants or
loans shall include a financial assessment and physical inspection of
such property: Provided further, That eligible owners must have at
least a satisfactory management review rating, be in substantial
compliance with applicable performance standards and legal
requirements, and commit to an additional period of affordability
determined by the Secretary, but of not fewer than 15 years: Provided
further, That the Secretary shall undertake appropriate underwriting
and oversight with respect to grant and loan transactions and may set
aside up to 5 percent of the funds made available under this heading
for grants or loans for such purpose: Provided further, That the
Secretary shall take steps necessary to ensure that owners receiving
funding for energy and green retrofit investments under this heading
shall expend such funding within 2 years of the date they received the
funding: Provided further, That in administering funds appropriated or
otherwise made available under this heading, the Secretary may waive or
specify alternative requirements for any provision of any statute or
regulation in connection with the obligation by the Secretary or the
use of these funds (except for requirements related to fair housing,
nondiscrimination, labor standards, and the environment), upon a
finding that such a waiver is necessary to expedite or facilitate the
use of such funds: Provided further, That of the funds provided under
this heading for grants and loans, up to 1 percent shall be available
for staffing, training, technical assistance, technology, monitoring,
research and evaluation activities: Provided further, That funds set
aside in the previous proviso shall remain available until September
30, 2012: Provided further, That funding made available under this
heading and used by the Secretary for personnel expenses related to
administering funding under this heading shall be transferred to
``Housing Personnel Compensation and Benefits'' and shall retain the
terms and conditions of this account including reprogramming provisos
except that the period of availability set forth in the previous
proviso shall govern such transferred funds: Provided further, That any
funding made available under this heading used by the Secretary for
training and other administrative expenses shall be transferred to
``Administration, Operations and Management'' for non-personnel
expenses of the Department of Housing and Urban Development: Provided
further, That any funding made available under this heading used by the
Secretary for technology shall be transferred to ``Working Capital
Fund.''
Office of Lead Hazard Control and Healthy Homes
For an additional amount for the ``Lead Hazard Reduction Program'',
as authorized by section 1011 of the Residential Lead-Based Paint
Hazard Reduction Act of 1992, and by sections 501 and 502 of the
Housing and Urban Development Act of 1974, $100,000,000, to remain
available until September 30, 2011: Provided, That for purposes of
environmental review, pursuant to the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.) and other provisions of law that
further the purposes of such Act, a grant under the Healthy Homes
Initiative, Operation Lead Elimination Action Plan (LEAP), or the Lead
Technical Studies program under this heading or under prior
appropriations Acts for such purposes under this heading, shall be
considered to be funds for a special project for purposes of section
305(e) of the Multifamily Housing Property Disposition Reform Act of
1994: Provided further, That funds shall be awarded first to applicants
which had applied under the Lead Hazard Reduction Program Notices of
Funding Availability for fiscal year 2008, and were found in the
application review to be qualified for award, but were not awarded
because of funding limitations, and that any funds which remain after
reservation of funds for such grants shall be added to the amount of
funds to be awarded under the Lead Hazard Reduction Program Notices of
Funding Availability for fiscal year 2009: Provided further, That each
applicant for the Lead Hazard Program Notices of Funding Availability
for fiscal year 2009 shall submit a detailed plan and strategy that
demonstrates adequate capacity that is acceptable to the Secretary to
carry out the proposed use of funds: Provided further, That recipients
of funds under this heading shall expend at least 50 percent of such
funds within 2 years of the date on which funds become available to
such jurisdictions for obligation, and expend 100 percent of such funds
within 3 years of such date: Provided further, That if a recipient
fails to comply with the 2-year expenditure requirement, the Secretary
shall recapture all remaining funds awarded to the recipient and
reallocate such funds to recipients that are in compliance with those
requirements: Provided further, That if a recipient fails to comply
with the 3-year expenditure requirement, the Secretary shall recapture
the balance of the funds awarded to the recipient: Provided further,
That in administering funds appropriated or otherwise made available
under this heading, the Secretary may waive or specify alternative
requirements for any provision of any statute or regulation in
connection with the obligation by the Secretary or the use of these
funds (except for requirements related to fair housing,
nondiscrimination, labor standards and the environment), upon a finding
that such a waiver is necessary to expedite or facilitate the use of
such funds: Provided further, That of the funds made available under
this heading, up to .5 percent shall be available for staffing,
training, technical assistance, technology, monitoring, travel,
enforcement, research and evaluation activities: Provided further, That
funds set aside in the previous proviso shall remain available until
September 30, 2012: Provided further, That any funds made available
under this heading used by the Secretary for personnel expenses related
to administering funding under this heading shall be transferred to
``Personnel Compensation and Benefits, Office of Lead Hazard Control
and Healthy Homes'' and shall retain the terms and conditions of this
account, including reprogramming provisions, except that the period of
availability set forth in the previous proviso shall govern such
transferred funds: Provided further, That any funds made available
under this heading used by the Secretary for training or other
administrative expenses shall be transferred to ``Administration,
Operations, and Management'', for non-personnel expenses of the
Department of Housing and Urban Development: Provided further, That any
funds made available under this heading used by the Secretary for
technology shall be transferred to ``Working Capital Fund''.
Management and Administration
office of inspector general
For an additional amount for the necessary salaries and expenses of
the Office of Inspector General in carrying out the Inspector General
Act of 1978, as amended, $15,000,000, to remain available until
September 30, 2013: Provided, That the Inspector General shall have
independent authority over all personnel issues within this office.
GENERAL PROVISIONS--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Sec. 1202. FHA Loan Limits for 2009. (a) Loan Limit Floor Based on
2008 Levels.--For mortgages for which the mortgagee issues credit
approval for the borrower during calendar year 2009, if the dollar
amount limitation on the principal obligation of a mortgage determined
under section 203(b)(2) of the National Housing Act (12 U.S.C.
1709(b)(2)) for any size residence for any area is less than such
dollar amount limitation that was in effect for such size residence for
such area for 2008 pursuant to section 202 of the Economic Stimulus Act
of 2008 (Public Law 110-185; 122 Stat. 620), notwithstanding any other
provision of law, the maximum dollar amount limitation on the principal
obligation of a mortgage for such size residence for such area for
purposes of such section 203(b)(2) shall be considered (except for
purposes of section 255(g) of such Act (12 U.S.C. 1715z-20(g))) to be
such dollar amount limitation in effect for such size residence for
such area for 2008.
(b) Discretionary Authority for Sub-Areas.--Notwithstanding any
other provision of law, if the Secretary of Housing and Urban
Development determines, for any geographic area that is smaller than an
area for which dollar amount limitations on the principal obligation of
a mortgage are determined under section 203(b)(2) of the National
Housing Act, that a higher such maximum dollar amount limitation is
warranted for any particular size or sizes of residences in such sub-
area by higher median home prices in such sub-area, the Secretary may,
for mortgages for which the mortgagee issues credit approval for the
borrower during calendar year 2009, increase the maximum dollar amount
limitation for such size or sizes of residences for such sub-area that
is otherwise in effect (including pursuant to subsection (a) of this
section), but in no case to an amount that exceeds the amount specified
in section 202(a)(2) of the Economic Stimulus Act of 2008.
Sec. 1203. GSE Conforming Loan Limits for 2009. (a) Loan Limit
Floor Based on 2008 Levels.--For mortgages originated during calendar
year 2009, if the limitation on the maximum original principal
obligation of a mortgage that may be purchased by the Federal National
Mortgage Association or the Federal Home Loan Mortgage Corporation
determined under section 302(b)(2) of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1717(b)(2)) or section 305(a)(2) of
the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1754(a)(2)),
respectively, for any size residence for any area is less than such
maximum original principal obligation limitation that was in effect for
such size residence for such area for 2008 pursuant to section 201 of
the Economic Stimulus Act of 2008 (Public Law 110-185; 122 Stat. 619),
notwithstanding any other provision of law, the limitation on the
maximum original principal obligation of a mortgage for such
Association and Corporation for such size residence for such area shall
be such maximum limitation in effect for such size residence for such
area for 2008.
(b) Discretionary Authority for Sub-Areas.--Notwithstanding any
other provision of law, if the Director of the Federal Housing Finance
Agency determines, for any geographic area that is smaller than an area
for which limitations on the maximum original principal obligation of a
mortgage are determined for the Federal National Mortgage Association
or the Federal Home Loan Mortgage Corporation, that a higher such
maximum original principal obligation limitation is warranted for any
particular size or sizes of residences in such sub-area by higher
median home prices in such sub-area, the Director may, for mortgages
originated during 2009, increase the maximum original principal
obligation limitation for such size or sizes of residences for such
sub-area that is otherwise in effect (including pursuant to subsection
(a) of this section) for such Association and Corporation, but in no
case to an amount that exceeds the amount specified in the matter
following the comma in section 201(a)(1)(B) of the Economic Stimulus
Act of 2008.
Sec. 1204. FHA Reverse Mortgage Loan Limits for 2009. For mortgages
for which the mortgagee issues credit approval for the borrower during
calendar year 2009, the second sentence of section 255(g) of the
National Housing Act (12 U.S.C. 1715z-20(g)) shall be considered to
require that in no case may the benefits of insurance under such
section 255 exceed 150 percent of the maximum dollar amount in effect
under the sixth sentence of section 305(a)(2) of the Federal Home Loan
Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).
TITLE XIII--HEALTH INFORMATION TECHNOLOGY
SEC. 13001. SHORT TITLE; TABLE OF CONTENTS OF TITLE.
(a) Short Title.--This title (and title IV of division B) may be
cited as the ``Health Information Technology for Economic and Clinical
Health Act'' or the ``HITECH Act''.
(b) Table of Contents of Title.--The table of contents of this
title is as follows:
Sec. 13001. Short title; table of contents of title.
Subtitle A--Promotion of Health Information Technology
Part 1--Improving Health Care Quality, Safety, and Efficiency
Sec. 13101. ONCHIT; standards development and adoption.
``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY
``Sec. 3000. Definitions.
``Subtitle A--Promotion of Health Information Technology
``Sec. 3001. Office of the National Coordinator for Health
Information Technology.
``Sec. 3002. HIT Policy Committee.
``Sec. 3003. HIT Standards Committee.
``Sec. 3004. Process for adoption of endorsed recommendations;
adoption of initial set of standards, implementation
specifications, and certification criteria.
``Sec. 3005. Application and use of adopted standards and
implementation specifications by Federal agencies.
``Sec. 3006. Voluntary application and use of adopted standards and
implementation specifications by private entities.
``Sec. 3007. Federal health information technology.
``Sec. 3008. Transitions.
``Sec. 3009. Miscellaneous provisions.
Sec. 13102. Technical amendment.
Part 2--Application and Use of Adopted Health Information Technology
Standards; Reports
Sec. 13111. Coordination of Federal activities with adopted standards
and implementation specifications.
Sec. 13112. Application to private entities.
Sec. 13113. Study and reports.
Subtitle B--Testing of Health Information Technology
Sec. 13201. National Institute for Standards and Technology testing.
Sec. 13202. Research and development programs.
Subtitle C--Grants and Loans Funding
Sec. 13301. Grant, loan, and demonstration programs.
``Subtitle B--Incentives for the Use of Health Information Technology
``Sec. 3011. Immediate funding to strengthen the health information
technology infrastructure.
``Sec. 3012. Health information technology implementation
assistance.
``Sec. 3013. State grants to promote health information technology.
``Sec. 3014. Competitive grants to States and Indian tribes for the
development of loan programs to facilitate the widespread
adoption of certified EHR technology.
``Sec. 3015. Demonstration program to integrate information
technology into clinical education.
``Sec. 3016. Information technology professionals in health care.
``Sec. 3017. General grant and loan provisions.
``Sec. 3018. Authorization for appropriations.
Subtitle D--Privacy
Sec. 13400. Definitions.
Part 1--Improved Privacy Provisions and Security Provisions
Sec. 13401. Application of security provisions and penalties to business
associates of covered entities; annual guidance on security
provisions.
Sec. 13402. Notification in the case of breach.
Sec. 13403. Education on health information privacy.
Sec. 13404. Application of privacy provisions and penalties to business
associates of covered entities.
Sec. 13405. Restrictions on certain disclosures and sales of health
information; accounting of certain protected health
information disclosures; access to certain information in
electronic format.
Sec. 13406. Conditions on certain contacts as part of health care
operations.
Sec. 13407. Temporary breach notification requirement for vendors of
personal health records and other non-HIPAA covered entities.
Sec. 13408. Business associate contracts required for certain entities.
Sec. 13409. Clarification of application of wrongful disclosures
criminal penalties.
Sec. 13410. Improved enforcement.
Sec. 13411. Audits.
Part 2--Relationship to Other Laws; Regulatory References; Effective
Date; Reports
Sec. 13421. Relationship to other laws.
Sec. 13422. Regulatory references.
Sec. 13423. Effective date.
Sec. 13424. Studies, reports, guidance.
Subtitle A--Promotion of Health Information Technology
PART 1--IMPROVING HEALTH CARE QUALITY, SAFETY, AND EFFICIENCY
SEC. 13101. ONCHIT; STANDARDS DEVELOPMENT AND ADOPTION.
The Public Health Service Act (42 U.S.C. 201 et seq.) is amended by
adding at the end the following:
``TITLE XXX--HEALTH INFORMATION TECHNOLOGY AND QUALITY
``SEC. 3000. DEFINITIONS.
``In this title:
``(1) Certified ehr technology.--The term `certified EHR
technology' means a qualified electronic health record that is
certified pursuant to section 3001(c)(5) as meeting standards
adopted under section 3004 that are applicable to the type of
record involved (as determined by the Secretary, such as an
ambulatory electronic health record for office-based physicians or
an inpatient hospital electronic health record for hospitals).
``(2) Enterprise integration.--The term `enterprise
integration' means the electronic linkage of health care providers,
health plans, the government, and other interested parties, to
enable the electronic exchange and use of health information among
all the components in the health care infrastructure in accordance
with applicable law, and such term includes related application
protocols and other related standards.
``(3) Health care provider.--The term `health care provider'
includes a hospital, skilled nursing facility, nursing facility,
home health entity or other long term care facility, health care
clinic, community mental health center (as defined in section
1913(b)(1)), renal dialysis facility, blood center, ambulatory
surgical center described in section 1833(i) of the Social Security
Act, emergency medical services provider, Federally qualified
health center, group practice, a pharmacist, a pharmacy, a
laboratory, a physician (as defined in section 1861(r) of the
Social Security Act), a practitioner (as described in section
1842(b)(18)(C) of the Social Security Act), a provider operated by,
or under contract with, the Indian Health Service or by an Indian
tribe (as defined in the Indian Self-Determination and Education
Assistance Act), tribal organization, or urban Indian organization
(as defined in section 4 of the Indian Health Care Improvement
Act), a rural health clinic, a covered entity under section 340B,
an ambulatory surgical center described in section 1833(i) of the
Social Security Act, a therapist (as defined in section
1848(k)(3)(B)(iii) of the Social Security Act), and any other
category of health care facility, entity, practitioner, or
clinician determined appropriate by the Secretary.
``(4) Health information.--The term `health information' has
the meaning given such term in section 1171(4) of the Social
Security Act.
``(5) Health information technology.--The term `health
information technology' means hardware, software, integrated
technologies or related licenses, intellectual property, upgrades,
or packaged solutions sold as services that are designed for or
support the use by health care entities or patients for the
electronic creation, maintenance, access, or exchange of health
information
``(6) Health plan.--The term `health plan' has the meaning
given such term in section 1171(5) of the Social Security Act.
``(7) HIT policy committee.--The term `HIT Policy Committee'
means such Committee established under section 3002(a).
``(8) HIT standards committee.--The term `HIT Standards
Committee' means such Committee established under section 3003(a).
``(9) Individually identifiable health information.--The term
`individually identifiable health information' has the meaning
given such term in section 1171(6) of the Social Security Act.
``(10) Laboratory.--The term `laboratory' has the meaning given
such term in section 353(a).
``(11) National coordinator.--The term `National Coordinator'
means the head of the Office of the National Coordinator for Health
Information Technology established under section 3001(a).
``(12) Pharmacist.--The term `pharmacist' has the meaning given
such term in section 804(2) of the Federal Food, Drug, and Cosmetic
Act.
``(13) Qualified electronic health record.--The term `qualified
electronic health record' means an electronic record of health-
related information on an individual that--
``(A) includes patient demographic and clinical health
information, such as medical history and problem lists; and
``(B) has the capacity--
``(i) to provide clinical decision support;
``(ii) to support physician order entry;
``(iii) to capture and query information relevant to
health care quality; and
``(iv) to exchange electronic health information with,
and integrate such information from other sources.
``(14) State.--The term `State' means each of the several
States, the District of Columbia, Puerto Rico, the Virgin Islands,
Guam, American Samoa, and the Northern Mariana Islands.
``Subtitle A--Promotion of Health Information Technology
``SEC. 3001. OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH INFORMATION
TECHNOLOGY.
``(a) Establishment.--There is established within the Department of
Health and Human Services an Office of the National Coordinator for
Health Information Technology (referred to in this section as the
`Office'). The Office shall be headed by a National Coordinator who
shall be appointed by the Secretary and shall report directly to the
Secretary.
``(b) Purpose.--The National Coordinator shall perform the duties
under subsection (c) in a manner consistent with the development of a
nationwide health information technology infrastructure that allows for
the electronic use and exchange of information and that--
``(1) ensures that each patient's health information is secure
and protected, in accordance with applicable law;
``(2) improves health care quality, reduces medical errors,
reduces health disparities, and advances the delivery of patient-
centered medical care;
``(3) reduces health care costs resulting from inefficiency,
medical errors, inappropriate care, duplicative care, and
incomplete information;
``(4) provides appropriate information to help guide medical
decisions at the time and place of care;
``(5) ensures the inclusion of meaningful public input in such
development of such infrastructure;
``(6) improves the coordination of care and information among
hospitals, laboratories, physician offices, and other entities
through an effective infrastructure for the secure and authorized
exchange of health care information;
``(7) improves public health activities and facilitates the
early identification and rapid response to public health threats
and emergencies, including bioterror events and infectious disease
outbreaks;
``(8) facilitates health and clinical research and health care
quality;
``(9) promotes early detection, prevention, and management of
chronic diseases;
``(10) promotes a more effective marketplace, greater
competition, greater systems analysis, increased consumer choice,
and improved outcomes in health care services; and
``(11) improves efforts to reduce health disparities.
``(c) Duties of the National Coordinator.--
``(1) Standards.--The National Coordinator shall--
``(A) review and determine whether to endorse each
standard, implementation specification, and certification
criterion for the electronic exchange and use of health
information that is recommended by the HIT Standards Committee
under section 3003 for purposes of adoption under section 3004;
``(B) make such determinations under subparagraph (A), and
report to the Secretary such determinations, not later than 45
days after the date the recommendation is received by the
Coordinator; and
``(C) review Federal health information technology
investments to ensure that Federal health information
technology programs are meeting the objectives of the strategic
plan published under paragraph (3).
``(2) HIT policy coordination.--
``(A) In general.--The National Coordinator shall
coordinate health information technology policy and programs of
the Department with those of other relevant executive branch
agencies with a goal of avoiding duplication of efforts and of
helping to ensure that each agency undertakes health
information technology activities primarily within the areas of
its greatest expertise and technical capability and in a manner
towards a coordinated national goal.
``(B) HIT policy and standards committees.--The National
Coordinator shall be a leading member in the establishment and
operations of the HIT Policy Committee and the HIT Standards
Committee and shall serve as a liaison among those two
Committees and the Federal Government.
``(3) Strategic plan.--
``(A) In general.--The National Coordinator shall, in
consultation with other appropriate Federal agencies (including
the National Institute of Standards and Technology), update the
Federal Health IT Strategic Plan (developed as of June 3, 2008)
to include specific objectives, milestones, and metrics with
respect to the following:
``(i) The electronic exchange and use of health
information and the enterprise integration of such
information.
``(ii) The utilization of an electronic health record
for each person in the United States by 2014.
``(iii) The incorporation of privacy and security
protections for the electronic exchange of an individual's
individually identifiable health information.
``(iv) Ensuring security methods to ensure appropriate
authorization and electronic authentication of health
information and specifying technologies or methodologies
for rendering health information unusable, unreadable, or
indecipherable.
``(v) Specifying a framework for coordination and flow
of recommendations and policies under this subtitle among
the Secretary, the National Coordinator, the HIT Policy
Committee, the HIT Standards Committee, and other health
information exchanges and other relevant entities.
``(vi) Methods to foster the public understanding of
health information technology.
``(vii) Strategies to enhance the use of health
information technology in improving the quality of health
care, reducing medical errors, reducing health disparities,
improving public health, increasing prevention and
coordination with community resources, and improving the
continuity of care among health care settings.
``(viii) Specific plans for ensuring that populations
with unique needs, such as children, are appropriately
addressed in the technology design, as appropriate, which
may include technology that automates enrollment and
retention for eligible individuals.
``(B) Collaboration.--The strategic plan shall be updated
through collaboration of public and private entities.
``(C) Measurable outcome goals.--The strategic plan update
shall include measurable outcome goals.
``(D) Publication.--The National Coordinator shall
republish the strategic plan, including all updates.
``(4) Website.--The National Coordinator shall maintain and
frequently update an Internet website on which there is posted
information on the work, schedules, reports, recommendations, and
other information to ensure transparency in promotion of a
nationwide health information technology infrastructure.
``(5) Certification.--
``(A) In general.--The National Coordinator, in
consultation with the Director of the National Institute of
Standards and Technology, shall keep or recognize a program or
programs for the voluntary certification of health information
technology as being in compliance with applicable certification
criteria adopted under this subtitle. Such program shall
include, as appropriate, testing of the technology in
accordance with section 13201(b) of the Health Information
Technology for Economic and Clinical Health Act.
``(B) Certification criteria described.--In this title, the
term `certification criteria' means, with respect to standards
and implementation specifications for health information
technology, criteria to establish that the technology meets
such standards and implementation specifications.
``(6) Reports and publications.--
``(A) Report on additional funding or authority needed.--
Not later than 12 months after the date of the enactment of
this title, the National Coordinator shall submit to the
appropriate committees of jurisdiction of the House of
Representatives and the Senate a report on any additional
funding or authority the Coordinator or the HIT Policy
Committee or HIT Standards Committee requires to evaluate and
develop standards, implementation specifications, and
certification criteria, or to achieve full participation of
stakeholders in the adoption of a nationwide health information
technology infrastructure that allows for the electronic use
and exchange of health information.
``(B) Implementation report.--The National Coordinator
shall prepare a report that identifies lessons learned from
major public and private health care systems in their
implementation of health information technology, including
information on whether the technologies and practices developed
by such systems may be applicable to and usable in whole or in
part by other health care providers.
``(C) Assessment of impact of hit on communities with
health disparities and uninsured, underinsured, and medically
underserved areas.--The National Coordinator shall assess and
publish the impact of health information technology in
communities with health disparities and in areas with a high
proportion of individuals who are uninsured, underinsured, and
medically underserved individuals (including urban and rural
areas) and identify practices to increase the adoption of such
technology by health care providers in such communities, and
the use of health information technology to reduce and better
manage chronic diseases.
``(D) Evaluation of benefits and costs of the electronic
use and exchange of health information.--The National
Coordinator shall evaluate and publish evidence on the benefits
and costs of the electronic use and exchange of health
information and assess to whom these benefits and costs accrue.
``(E) Resource requirements.--The National Coordinator
shall estimate and publish resources required annually to reach
the goal of utilization of an electronic health record for each
person in the United States by 2014, including--
``(i) the required level of Federal funding;
``(ii) expectations for regional, State, and private
investment;
``(iii) the expected contributions by volunteers to
activities for the utilization of such records; and
``(iv) the resources needed to establish a health
information technology workforce sufficient to support this
effort (including education programs in medical informatics
and health information management).
``(7) Assistance.--The National Coordinator may provide
financial assistance to consumer advocacy groups and not-for-profit
entities that work in the public interest for purposes of defraying
the cost to such groups and entities to participate under, whether
in whole or in part, the National Technology Transfer Act of 1995
(15 U.S.C. 272 note).
``(8) Governance for nationwide health information network.--
The National Coordinator shall establish a governance mechanism for
the nationwide health information network.
``(d) Detail of Federal Employees.--
``(1) In general.--Upon the request of the National
Coordinator, the head of any Federal agency is authorized to
detail, with or without reimbursement from the Office, any of the
personnel of such agency to the Office to assist it in carrying out
its duties under this section.
``(2) Effect of detail.--Any detail of personnel under
paragraph (1) shall--
``(A) not interrupt or otherwise affect the civil service
status or privileges of the Federal employee; and
``(B) be in addition to any other staff of the Department
employed by the National Coordinator.
``(3) Acceptance of detailees.--Notwithstanding any other
provision of law, the Office may accept detailed personnel from
other Federal agencies without regard to whether the agency
described under paragraph (1) is reimbursed.
``(e) Chief Privacy Officer of the Office of the National
Coordinator.--Not later than 12 months after the date of the enactment
of this title, the Secretary shall appoint a Chief Privacy Officer of
the Office of the National Coordinator, whose duty it shall be to
advise the National Coordinator on privacy, security, and data
stewardship of electronic health information and to coordinate with
other Federal agencies (and similar privacy officers in such agencies),
with State and regional efforts, and with foreign countries with regard
to the privacy, security, and data stewardship of electronic
individually identifiable health information.
``SEC. 3002. HIT POLICY COMMITTEE.
``(a) Establishment.--There is established a HIT Policy Committee
to make policy recommendations to the National Coordinator relating to
the implementation of a nationwide health information technology
infrastructure, including implementation of the strategic plan
described in section 3001(c)(3).
``(b) Duties.--
``(1) Recommendations on health information technology
infrastructure.--The HIT Policy Committee shall recommend a policy
framework for the development and adoption of a nationwide health
information technology infrastructure that permits the electronic
exchange and use of health information as is consistent with the
strategic plan under section 3001(c)(3) and that includes the
recommendations under paragraph (2). The Committee shall update
such recommendations and make new recommendations as appropriate.
``(2) Specific areas of standard development.--
``(A) In general.--The HIT Policy Committee shall recommend
the areas in which standards, implementation specifications,
and certification criteria are needed for the electronic
exchange and use of health information for purposes of adoption
under section 3004 and shall recommend an order of priority for
the development, harmonization, and recognition of such
standards, specifications, and certification criteria among the
areas so recommended. Such standards and implementation
specifications shall include named standards, architectures,
and software schemes for the authentication and security of
individually identifiable health information and other
information as needed to ensure the reproducible development of
common solutions across disparate entities.
``(B) Areas required for consideration.--For purposes of
subparagraph (A), the HIT Policy Committee shall make
recommendations for at least the following areas:
``(i) Technologies that protect the privacy of health
information and promote security in a qualified electronic
health record, including for the segmentation and
protection from disclosure of specific and sensitive
individually identifiable health information with the goal
of minimizing the reluctance of patients to seek care (or
disclose information about a condition) because of privacy
concerns, in accordance with applicable law, and for the
use and disclosure of limited data sets of such
information.
``(ii) A nationwide health information technology
infrastructure that allows for the electronic use and
accurate exchange of health information.
``(iii) The utilization of a certified electronic
health record for each person in the United States by 2014.
``(iv) Technologies that as a part of a qualified
electronic health record allow for an accounting of
disclosures made by a covered entity (as defined for
purposes of regulations promulgated under section 264(c) of
the Health Insurance Portability and Accountability Act of
1996) for purposes of treatment, payment, and health care
operations (as such terms are defined for purposes of such
regulations).
``(v) The use of certified electronic health records to
improve the quality of health care, such as by promoting
the coordination of health care and improving continuity of
health care among health care providers, by reducing
medical errors, by improving population health, by reducing
health disparities, by reducing chronic disease, and by
advancing research and education.
``(vi) Technologies that allow individually
identifiable health information to be rendered unusable,
unreadable, or indecipherable to unauthorized individuals
when such information is transmitted in the nationwide
health information network or physically transported
outside of the secured, physical perimeter of a health care
provider, health plan, or health care clearinghouse.
``(vii) The use of electronic systems to ensure the
comprehensive collection of patient demographic data,
including, at a minimum, race, ethnicity, primary language,
and gender information.
``(viii) Technologies that address the needs of
children and other vulnerable populations.
``(C) Other areas for consideration.--In making
recommendations under subparagraph (A), the HIT Policy
Committee may consider the following additional areas:
``(i) The appropriate uses of a nationwide health
information infrastructure, including for purposes of--
``(I) the collection of quality data and public
reporting;
``(II) biosurveillance and public health;
``(III) medical and clinical research; and
``(IV) drug safety.
``(ii) Self-service technologies that facilitate the
use and exchange of patient information and reduce wait
times.
``(iii) Telemedicine technologies, in order to reduce
travel requirements for patients in remote areas.
``(iv) Technologies that facilitate home health care
and the monitoring of patients recuperating at home.
``(v) Technologies that help reduce medical errors.
``(vi) Technologies that facilitate the continuity of
care among health settings.
``(vii) Technologies that meet the needs of diverse
populations.
``(viii) Methods to facilitate secure access by an
individual to such individual's protected health
information.
``(ix) Methods, guidelines, and safeguards to
facilitate secure access to patient information by a family
member, caregiver, or guardian acting on behalf of a
patient due to age-related and other disability, cognitive
impairment, or dementia.
``(x) Any other technology that the HIT Policy
Committee finds to be among the technologies with the
greatest potential to improve the quality and efficiency of
health care.
``(3) Forum.--The HIT Policy Committee shall serve as a forum
for broad stakeholder input with specific expertise in policies
relating to the matters described in paragraphs (1) and (2).
``(4) Consistency with evaluation conducted under mippa.--
``(A) Requirement for consistency.--The HIT Policy
Committee shall ensure that recommendations made under
paragraph (2)(B)(vi) are consistent with the evaluation
conducted under section 1809(a) of the Social Security Act.
``(B) Scope.--Nothing in subparagraph (A) shall be
construed to limit the recommendations under paragraph
(2)(B)(vi) to the elements described in section 1809(a)(3) of
the Social Security Act.
``(C) Timing.--The requirement under subparagraph (A) shall
be applicable to the extent that evaluations have been
conducted under section 1809(a) of the Social Security Act,
regardless of whether the report described in subsection (b) of
such section has been submitted.
``(c) Membership and Operations.--
``(1) In general.--The National Coordinator shall take a
leading position in the establishment and operations of the HIT
Policy Committee.
``(2) Membership.--The HIT Policy Committee shall be composed
of members to be appointed as follows:
``(A) 3 members shall be appointed by the Secretary, 1 of
whom shall be appointed to represent the Department of Health
and Human Services and 1 of whom shall be a public health
official.
``(B) 1 member shall be appointed by the majority leader of
the Senate.
``(C) 1 member shall be appointed by the minority leader of
the Senate.
``(D) 1 member shall be appointed by the Speaker of the
House of Representatives.
``(E) 1 member shall be appointed by the minority leader of
the House of Representatives.
``(F) Such other members as shall be appointed by the
President as representatives of other relevant Federal
agencies.
``(G) 13 members shall be appointed by the Comptroller
General of the United States of whom--
``(i) 3 members shall advocates for patients or
consumers;
``(ii) 2 members shall represent health care providers,
one of which shall be a physician;
``(iii) 1 member shall be from a labor organization
representing health care workers;
``(iv) 1 member shall have expertise in health
information privacy and security;
``(v) 1 member shall have expertise in improving the
health of vulnerable populations;
``(vi) 1 member shall be from the research community;
``(vii) 1 member shall represent health plans or other
third-party payers;
``(viii) 1 member shall represent information
technology vendors;
``(ix) 1 member shall represent purchasers or
employers; and
``(x) 1 member shall have expertise in health care
quality measurement and reporting.
``(3) Participation.--The members of the HIT Policy Committee
appointed under paragraph (2) shall represent a balance among
various sectors of the health care system so that no single sector
unduly influences the recommendations of the Policy Committee.
``(4) Terms.--
``(A) In general.--The terms of the members of the HIT
Policy Committee shall be for 3 years, except that the
Comptroller General shall designate staggered terms for the
members first appointed.
``(B) Vacancies.--Any member appointed to fill a vacancy in
the membership of the HIT Policy Committee that occurs prior to
the expiration of the term for which the member's predecessor
was appointed shall be appointed only for the remainder of that
term. A member may serve after the expiration of that member's
term until a successor has been appointed. A vacancy in the HIT
Policy Committee shall be filled in the manner in which the
original appointment was made.
``(5) Outside involvement.--The HIT Policy Committee shall
ensure an opportunity for the participation in activities of the
Committee of outside advisors, including individuals with expertise
in the development of policies for the electronic exchange and use
of health information, including in the areas of health information
privacy and security.
``(6) Quorum.--A majority of the member of the HIT Policy
Committee shall constitute a quorum for purposes of voting, but a
lesser number of members may meet and hold hearings.
``(7) Failure of initial appointment.--If, on the date that is
45 days after the date of enactment of this title, an official
authorized under paragraph (2) to appoint one or more members of
the HIT Policy Committee has not appointed the full number of
members that such paragraph authorizes such official to appoint,
the Secretary is authorized to appoint such members.
``(8) Consideration.--The National Coordinator shall ensure
that the relevant and available recommendations and comments from
the National Committee on Vital and Health Statistics are
considered in the development of policies.
``(d) Application of FACA.--The Federal Advisory Committee Act (5
U.S.C. App.), other than section 14 of such Act, shall apply to the HIT
Policy Committee.
``(e) Publication.--The Secretary shall provide for publication in
the Federal Register and the posting on the Internet website of the
Office of the National Coordinator for Health Information Technology of
all policy recommendations made by the HIT Policy Committee under this
section.
``SEC. 3003. HIT STANDARDS COMMITTEE.
``(a) Establishment.--There is established a committee to be known
as the HIT Standards Committee to recommend to the National Coordinator
standards, implementation specifications, and certification criteria
for the electronic exchange and use of health information for purposes
of adoption under section 3004, consistent with the implementation of
the strategic plan described in section 3001(c)(3) and beginning with
the areas listed in section 3002(b)(2)(B) in accordance with policies
developed by the HIT Policy Committee.
``(b) Duties.--
``(1) Standards development.--
``(A) In general.--The HIT Standards Committee shall
recommend to the National Coordinator standards, implementation
specifications, and certification criteria described in
subsection (a) that have been developed, harmonized, or
recognized by the HIT Standards Committee. The HIT Standards
Committee shall update such recommendations and make new
recommendations as appropriate, including in response to a
notification sent under section 3004(a)(2)(B). Such
recommendations shall be consistent with the latest
recommendations made by the HIT Policy Committee.
``(B) Harmonization.--The HIT Standards Committee recognize
harmonized or updated standards from an entity or entities for
the purpose of harmonizing or updating standards and
implementation specifications in order to achieve uniform and
consistent implementation of the standards and implementation
specifications.
``(C) Pilot testing of standards and implementation
specifications.--In the development, harmonization, or
recognition of standards and implementation specifications, the
HIT Standards Committee shall, as appropriate, provide for the
testing of such standards and specifications by the National
Institute for Standards and Technology under section 13201(a)
of the Health Information Technology for Economic and Clinical
Health Act.
``(D) Consistency.--The standards, implementation
specifications, and certification criteria recommended under
this subsection shall be consistent with the standards for
information transactions and data elements adopted pursuant to
section 1173 of the Social Security Act.
``(2) Forum.--The HIT Standards Committee shall serve as a
forum for the participation of a broad range of stakeholders to
provide input on the development, harmonization, and recognition of
standards, implementation specifications, and certification
criteria necessary for the development and adoption of a nationwide
health information technology infrastructure that allows for the
electronic use and exchange of health information.
``(3) Schedule.--Not later than 90 days after the date of the
enactment of this title, the HIT Standards Committee shall develop
a schedule for the assessment of policy recommendations developed
by the HIT Policy Committee under section 3002. The HIT Standards
Committee shall update such schedule annually. The Secretary shall
publish such schedule in the Federal Register.
``(4) Public input.--The HIT Standards Committee shall conduct
open public meetings and develop a process to allow for public
comment on the schedule described in paragraph (3) and
recommendations described in this subsection. Under such process
comments shall be submitted in a timely manner after the date of
publication of a recommendation under this subsection.
``(5) Consideration.--The National Coordinator shall ensure
that the relevant and available recommendations and comments from
the National Committee on Vital and Health Statistics are
considered in the development of standards.
``(c) Membership and Operations.--
``(1) In general.--The National Coordinator shall take a
leading position in the establishment and operations of the HIT
Standards Committee.
``(2) Membership.--The membership of the HIT Standards
Committee shall at least reflect providers, ancillary healthcare
workers, consumers, purchasers, health plans, technology vendors,
researchers, relevant Federal agencies, and individuals with
technical expertise on health care quality, privacy and security,
and on the electronic exchange and use of health information.
``(3) Participation.--The members of the HIT Standards
Committee appointed under this subsection shall represent a balance
among various sectors of the health care system so that no single
sector unduly influences the recommendations of such Committee.
``(4) Outside involvement.--The HIT Policy Committee shall
ensure an opportunity for the participation in activities of the
Committee of outside advisors, including individuals with expertise
in the development of standards for the electronic exchange and use
of health information, including in the areas of health information
privacy and security.
``(5) Balance among sectors.--In developing the procedures for
conducting the activities of the HIT Standards Committee, the HIT
Standards Committee shall act to ensure a balance among various
sectors of the health care system so that no single sector unduly
influences the actions of the HIT Standards Committee.
``(6) Assistance.--For the purposes of carrying out this
section, the Secretary may provide or ensure that financial
assistance is provided by the HIT Standards Committee to defray in
whole or in part any membership fees or dues charged by such
Committee to those consumer advocacy groups and not for profit
entities that work in the public interest as a part of their
mission.
``(d) Application of FACA.--The Federal Advisory Committee Act (5
U.S.C. App.), other than section 14, shall apply to the HIT Standards
Committee.
``(e) Publication.--The Secretary shall provide for publication in
the Federal Register and the posting on the Internet website of the
Office of the National Coordinator for Health Information Technology of
all recommendations made by the HIT Standards Committee under this
section.
``SEC. 3004. PROCESS FOR ADOPTION OF ENDORSED RECOMMENDATIONS; ADOPTION
OF INITIAL SET OF STANDARDS, IMPLEMENTATION
SPECIFICATIONS, AND CERTIFICATION CRITERIA.
``(a) Process for Adoption of Endorsed Recommendations.--
``(1) Review of endorsed standards, implementation
specifications, and certification criteria.--Not later than 90 days
after the date of receipt of standards, implementation
specifications, or certification criteria endorsed under section
3001(c), the Secretary, in consultation with representatives of
other relevant Federal agencies, shall jointly review such
standards, implementation specifications, or certification criteria
and shall determine whether or not to propose adoption of such
standards, implementation specifications, or certification
criteria.
``(2) Determination to adopt standards, implementation
specifications, and certification criteria.--If the Secretary
determines--
``(A) to propose adoption of any grouping of such
standards, implementation specifications, or certification
criteria, the Secretary shall, by regulation under section 553
of title 5, United States Code, determine whether or not to
adopt such grouping of standards, implementation
specifications, or certification criteria; or
``(B) not to propose adoption of any grouping of standards,
implementation specifications, or certification criteria, the
Secretary shall notify the National Coordinator and the HIT
Standards Committee in writing of such determination and the
reasons for not proposing the adoption of such recommendation.
``(3) Publication.--The Secretary shall provide for publication
in the Federal Register of all determinations made by the Secretary
under paragraph (1).
``(b) Adoption of Standards, Implementation Specifications, and
Certification Criteria.--
``(1) In general.--Not later than December 31, 2009, the
Secretary shall, through the rulemaking process consistent with
subsection (a)(2)(A), adopt an initial set of standards,
implementation specifications, and certification criteria for the
areas required for consideration under section 3002(b)(2)(B). The
rulemaking for the initial set of standards, implementation
specifications, and certification criteria may be issued on an
interim, final basis.
``(2) Application of current standards, implementation
specifications, and certification criteria.--The standards,
implementation specifications, and certification criteria adopted
before the date of the enactment of this title through the process
existing through the Office of the National Coordinator for Health
Information Technology may be applied towards meeting the
requirement of paragraph (1).
``(3) Subsequent standards activity.--The Secretary shall adopt
additional standards, implementation specifications, and
certification criteria as necessary and consistent with the
schedule published under section 3003(b)(2).
``SEC. 3005. APPLICATION AND USE OF ADOPTED STANDARDS AND
IMPLEMENTATION SPECIFICATIONS BY FEDERAL AGENCIES.
``For requirements relating to the application and use by Federal
agencies of the standards and implementation specifications adopted
under section 3004, see section 13111 of the Health Information
Technology for Economic and Clinical Health Act.
``SEC. 3006. VOLUNTARY APPLICATION AND USE OF ADOPTED STANDARDS AND
IMPLEMENTATION SPECIFICATIONS BY PRIVATE ENTITIES.
``(a) In General.--Except as provided under section 13112 of the
HITECH Act, nothing in such Act or in the amendments made by such Act
shall be construed--
``(1) to require a private entity to adopt or comply with a
standard or implementation specification adopted under section
3004; or
``(2) to provide a Federal agency authority, other than the
authority such agency may have under other provisions of law, to
require a private entity to comply with such a standard or
implementation specification.
``(b) Rule of Construction.--Nothing in this subtitle shall be
construed to require that a private entity that enters into a contract
with the Federal Government apply or use the standards and
implementation specifications adopted under section 3004 with respect
to activities not related to the contract.
``SEC. 3007. FEDERAL HEALTH INFORMATION TECHNOLOGY.
``(a) In General.--The National Coordinator shall support the
development and routine updating of qualified electronic health record
technology (as defined in section 3000) consistent with subsections (b)
and (c) and make available such qualified electronic health record
technology unless the Secretary determines through an assessment that
the needs and demands of providers are being substantially and
adequately met through the marketplace.
``(b) Certification.--In making such electronic health record
technology publicly available, the National Coordinator shall ensure
that the qualified electronic health record technology described in
subsection (a) is certified under the program developed under section
3001(c)(3) to be in compliance with applicable standards adopted under
section 3003(a).
``(c) Authorization To Charge a Nominal Fee.--The National
Coordinator may impose a nominal fee for the adoption by a health care
provider of the health information technology system developed or
approved under subsection (a) and (b). Such fee shall take into account
the financial circumstances of smaller providers, low income providers,
and providers located in rural or other medically underserved areas.
``(d) Rule of Construction.--Nothing in this section shall be
construed to require that a private or government entity adopt or use
the technology provided under this section.
``SEC. 3008. TRANSITIONS.
``(a) ONCHIT.--To the extent consistent with section 3001, all
functions, personnel, assets, liabilities, and administrative actions
applicable to the National Coordinator for Health Information
Technology appointed under Executive Order No. 13335 or the Office of
such National Coordinator on the date before the date of the enactment
of this title shall be transferred to the National Coordinator
appointed under section 3001(a) and the Office of such National
Coordinator as of the date of the enactment of this title.
``(b) National EHealth Collaborative.--Nothing in sections 3002 or
3003 or this subsection shall be construed as prohibiting the AHIC
Successor, Inc. doing business as the National eHealth Collaborative
from modifying its charter, duties, membership, and any other structure
or function required to be consistent with section 3002 and 3003 so as
to allow the Secretary to recognize such AHIC Successor, Inc. as the
HIT Policy Committee or the HIT Standards Committee.
``(c) Consistency of Recommendations.--In carrying out section
3003(b)(1)(A), until recommendations are made by the HIT Policy
Committee, recommendations of the HIT Standards Committee shall be
consistent with the most recent recommendations made by such AHIC
Successor, Inc.
``SEC. 3009. MISCELLANEOUS PROVISIONS.
``(a) Relation to HIPAA Privacy and Security Law.--
``(1) In general.--With respect to the relation of this title
to HIPAA privacy and security law:
``(A) This title may not be construed as having any effect
on the authorities of the Secretary under HIPAA privacy and
security law.
``(B) The purposes of this title include ensuring that the
health information technology standards and implementation
specifications adopted under section 3004 take into account the
requirements of HIPAA privacy and security law.
``(2) Definition.--For purposes of this section, the term
`HIPAA privacy and security law' means--
``(A) the provisions of part C of title XI of the Social
Security Act, section 264 of the Health Insurance Portability
and Accountability Act of 1996, and subtitle D of title IV of
the Health Information Technology for Economic and Clinical
Health Act; and
``(B) regulations under such provisions.
``(b) Flexibility.--In administering the provisions of this title,
the Secretary shall have flexibility in applying the definition of
health care provider under section 3000(3), including the authority to
omit certain entities listed in such definition when applying such
definition under this title, where appropriate.''.
SEC. 13102. TECHNICAL AMENDMENT.
Section 1171(5) of the Social Security Act (42 U.S.C. 1320d) is
amended by striking ``or C'' and inserting ``C, or D''.
PART 2--APPLICATION AND USE OF ADOPTED HEALTH INFORMATION TECHNOLOGY
STANDARDS; REPORTS
SEC. 13111. COORDINATION OF FEDERAL ACTIVITIES WITH ADOPTED STANDARDS
AND IMPLEMENTATION SPECIFICATIONS.
(a) Spending on Health Information Technology Systems.--As each
agency (as defined by the Director of the Office of Management and
Budget, in consultation with the Secretary of Health and Human
Services) implements, acquires, or upgrades health information
technology systems used for the direct exchange of individually
identifiable health information between agencies and with non-Federal
entities, it shall utilize, where available, health information
technology systems and products that meet standards and implementation
specifications adopted under section 3004 of the Public Health Service
Act, as added by section 13101.
(b) Federal Information Collection Activities.--With respect to a
standard or implementation specification adopted under section 3004 of
the Public Health Service Act, as added by section 13101, the President
shall take measures to ensure that Federal activities involving the
broad collection and submission of health information are consistent
with such standard or implementation specification, respectively,
within three years after the date of such adoption.
(c) Application of Definitions.--The definitions contained in
section 3000 of the Public Health Service Act, as added by section
13101, shall apply for purposes of this part.
SEC. 13112. APPLICATION TO PRIVATE ENTITIES.
Each agency (as defined in such Executive Order issued on August
22, 2006, relating to promoting quality and efficient health care in
Federal government administered or sponsored health care programs)
shall require in contracts or agreements with health care providers,
health plans, or health insurance issuers that as each provider, plan,
or issuer implements, acquires, or upgrades health information
technology systems, it shall utilize, where available, health
information technology systems and products that meet standards and
implementation specifications adopted under section 3004 of the Public
Health Service Act, as added by section 13101.
SEC. 13113. STUDY AND REPORTS.
(a) Report on Adoption of Nationwide System.--Not later than 2
years after the date of the enactment of this Act and annually
thereafter, the Secretary of Health and Human Services shall submit to
the appropriate committees of jurisdiction of the House of
Representatives and the Senate a report that--
(1) describes the specific actions that have been taken by the
Federal Government and private entities to facilitate the adoption
of a nationwide system for the electronic use and exchange of
health information;
(2) describes barriers to the adoption of such a nationwide
system; and
(3) contains recommendations to achieve full implementation of
such a nationwide system.
(b) Reimbursement Incentive Study and Report.--
(1) Study.--The Secretary of Health and Human Services shall
carry out, or contract with a private entity to carry out, a study
that examines methods to create efficient reimbursement incentives
for improving health care quality in Federally qualified health
centers, rural health clinics, and free clinics.
(2) Report.--Not later than 2 years after the date of the
enactment of this Act, the Secretary of Health and Human Services
shall submit to the appropriate committees of jurisdiction of the
House of Representatives and the Senate a report on the study
carried out under paragraph (1).
(c) Aging Services Technology Study and Report.--
(1) In general.--The Secretary of Health and Human Services
shall carry out, or contract with a private entity to carry out, a
study of matters relating to the potential use of new aging
services technology to assist seniors, individuals with
disabilities, and their caregivers throughout the aging process.
(2) Matters to be studied.--The study under paragraph (1) shall
include--
(A) an evaluation of--
(i) methods for identifying current, emerging, and
future health technology that can be used to meet the needs
of seniors and individuals with disabilities and their
caregivers across all aging services settings, as specified
by the Secretary;
(ii) methods for fostering scientific innovation with
respect to aging services technology within the business
and academic communities; and
(iii) developments in aging services technology in
other countries that may be applied in the United States;
and
(B) identification of--
(i) barriers to innovation in aging services technology
and devising strategies for removing such barriers; and
(ii) barriers to the adoption of aging services
technology by health care providers and consumers and
devising strategies to removing such barriers.
(3) Report.--Not later than 24 months after the date of the
enactment of this Act, the Secretary shall submit to the
appropriate committees of jurisdiction of the House of
Representatives and of the Senate a report on the study carried out
under paragraph (1).
(4) Definitions.--For purposes of this subsection:
(A) Aging services technology.--The term ``aging services
technology'' means health technology that meets the health care
needs of seniors, individuals with disabilities, and the
caregivers of such seniors and individuals.
(B) Senior.--The term ``senior'' has such meaning as
specified by the Secretary.
Subtitle B--Testing of Health Information Technology
SEC. 13201. NATIONAL INSTITUTE FOR STANDARDS AND TECHNOLOGY TESTING.
(a) Pilot Testing of Standards and Implementation Specifications.--
In coordination with the HIT Standards Committee established under
section 3003 of the Public Health Service Act, as added by section
13101, with respect to the development of standards and implementation
specifications under such section, the Director of the National
Institute for Standards and Technology shall test such standards and
implementation specifications, as appropriate, in order to assure the
efficient implementation and use of such standards and implementation
specifications.
(b) Voluntary Testing Program.--In coordination with the HIT
Standards Committee established under section 3003 of the Public Health
Service Act, as added by section 13101, with respect to the development
of standards and implementation specifications under such section, the
Director of the National Institute of Standards and Technology shall
support the establishment of a conformance testing infrastructure,
including the development of technical test beds. The development of
this conformance testing infrastructure may include a program to
accredit independent, non-Federal laboratories to perform testing.
SEC. 13202. RESEARCH AND DEVELOPMENT PROGRAMS.
(a) Health Care Information Enterprise Integration Research
Centers.--
(1) In general.--The Director of the National Institute of
Standards and Technology, in consultation with the Director of the
National Science Foundation and other appropriate Federal agencies,
shall establish a program of assistance to institutions of higher
education (or consortia thereof which may include nonprofit
entities and Federal Government laboratories) to establish
multidisciplinary Centers for Health Care Information Enterprise
Integration.
(2) Review; competition.--Grants shall be awarded under this
subsection on a merit-reviewed, competitive basis.
(3) Purpose.--The purposes of the Centers described in
paragraph (1) shall be--
(A) to generate innovative approaches to health care
information enterprise integration by conducting cutting-edge,
multidisciplinary research on the systems challenges to health
care delivery; and
(B) the development and use of health information
technologies and other complementary fields.
(4) Research areas.--Research areas may include--
(A) interfaces between human information and communications
technology systems;
(B) voice-recognition systems;
(C) software that improves interoperability and
connectivity among health information systems;
(D) software dependability in systems critical to health
care delivery;
(E) measurement of the impact of information technologies
on the quality and productivity of health care;
(F) health information enterprise management;
(G) health information technology security and integrity;
and
(H) relevant health information technology to reduce
medical errors.
(5) Applications.--An institution of higher education (or a
consortium thereof) seeking funding under this subsection shall
submit an application to the Director of the National Institute of
Standards and Technology at such time, in such manner, and
containing such information as the Director may require. The
application shall include, at a minimum, a description of--
(A) the research projects that will be undertaken by the
Center established pursuant to assistance under paragraph (1)
and the respective contributions of the participating entities;
(B) how the Center will promote active collaboration among
scientists and engineers from different disciplines, such as
information technology, biologic sciences, management, social
sciences, and other appropriate disciplines;
(C) technology transfer activities to demonstrate and
diffuse the research results, technologies, and knowledge; and
(D) how the Center will contribute to the education and
training of researchers and other professionals in fields
relevant to health information enterprise integration.
(b) National Information Technology Research and Development
Program.--The National High-Performance Computing Program established
by section 101 of the High-Performance Computing Act of 1991 (15 U.S.C.
5511) shall include Federal research and development programs related
to health information technology.
Subtitle C--Grants and Loans Funding
SEC. 13301. GRANT, LOAN, AND DEMONSTRATION PROGRAMS.
Title XXX of the Public Health Service Act, as added by section
13101, is amended by adding at the end the following new subtitle:
``Subtitle B--Incentives for the Use of Health Information Technology
``SEC. 3011. IMMEDIATE FUNDING TO STRENGTHEN THE HEALTH INFORMATION
TECHNOLOGY INFRASTRUCTURE.
``(a) In General.--The Secretary shall, using amounts appropriated
under section 3018, invest in the infrastructure necessary to allow for
and promote the electronic exchange and use of health information for
each individual in the United States consistent with the goals outlined
in the strategic plan developed by the National Coordinator (and as
available) under section 3001. The Secretary shall invest funds through
the different agencies with expertise in such goals, such as the Office
of the National Coordinator for Health Information Technology, the
Health Resources and Services Administration, the Agency for Healthcare
Research and Quality, the Centers of Medicare & Medicaid Services, the
Centers for Disease Control and Prevention, and the Indian Health
Service to support the following:
``(1) Health information technology architecture that will
support the nationwide electronic exchange and use of health
information in a secure, private, and accurate manner, including
connecting health information exchanges, and which may include
updating and implementing the infrastructure necessary within
different agencies of the Department of Health and Human Services
to support the electronic use and exchange of health information.
``(2) Development and adoption of appropriate certified
electronic health records for categories of health care providers
not eligible for support under title XVIII or XIX of the Social
Security Act for the adoption of such records.
``(3) Training on and dissemination of information on best
practices to integrate health information technology, including
electronic health records, into a provider's delivery of care,
consistent with best practices learned from the Health Information
Technology Research Center developed under section 3012(b),
including community health centers receiving assistance under
section 330, covered entities under section 340B, and providers
participating in one or more of the programs under titles XVIII,
XIX, and XXI of the Social Security Act (relating to Medicare,
Medicaid, and the State Children's Health Insurance Program).
``(4) Infrastructure and tools for the promotion of
telemedicine, including coordination among Federal agencies in the
promotion of telemedicine.
``(5) Promotion of the interoperability of clinical data
repositories or registries.
``(6) Promotion of technologies and best practices that enhance
the protection of health information by all holders of individually
identifiable health information.
``(7) Improvement and expansion of the use of health
information technology by public health departments.
``(b) Coordination.--The Secretary shall ensure funds under this
section are used in a coordinated manner with other health information
promotion activities.
``(c) Additional Use of Funds.--In addition to using funds as
provided in subsection (a), the Secretary may use amounts appropriated
under section 3018 to carry out health information technology
activities that are provided for under laws in effect on the date of
the enactment of this title.
``(d) Standards for Acquisition of Health Information Technology.--
To the greatest extent practicable, the Secretary shall ensure that
where funds are expended under this section for the acquisition of
health information technology, such funds shall be used to acquire
health information technology that meets applicable standards adopted
under section 3004. Where it is not practicable to expend funds on
health information technology that meets such applicable standards, the
Secretary shall ensure that such health information technology meets
applicable standards otherwise adopted by the Secretary.
``SEC. 3012. HEALTH INFORMATION TECHNOLOGY IMPLEMENTATION ASSISTANCE.
``(a) Health Information Technology Extension Program.--To assist
health care providers to adopt, implement, and effectively use
certified EHR technology that allows for the electronic exchange and
use of health information, the Secretary, acting through the Office of
the National Coordinator, shall establish a health information
technology extension program to provide health information technology
assistance services to be carried out through the Department of Health
and Human Services. The National Coordinator shall consult with other
Federal agencies with demonstrated experience and expertise in
information technology services, such as the National Institute of
Standards and Technology, in developing and implementing this program.
``(b) Health Information Technology Research Center.--
``(1) In general.--The Secretary shall create a Health
Information Technology Research Center (in this section referred to
as the `Center') to provide technical assistance and develop or
recognize best practices to support and accelerate efforts to
adopt, implement, and effectively utilize health information
technology that allows for the electronic exchange and use of
information in compliance with standards, implementation
specifications, and certification criteria adopted under section
3004.
``(2) Input.--The Center shall incorporate input from--
``(A) other Federal agencies with demonstrated experience
and expertise in information technology services such as the
National Institute of Standards and Technology;
``(B) users of health information technology, such as
providers and their support and clerical staff and others
involved in the care and care coordination of patients, from
the health care and health information technology industry; and
``(C) others as appropriate.
``(3) Purposes.--The purposes of the Center are to--
``(A) provide a forum for the exchange of knowledge and
experience;
``(B) accelerate the transfer of lessons learned from
existing public and private sector initiatives, including those
currently receiving Federal financial support;
``(C) assemble, analyze, and widely disseminate evidence
and experience related to the adoption, implementation, and
effective use of health information technology that allows for
the electronic exchange and use of information including
through the regional centers described in subsection (c);
``(D) provide technical assistance for the establishment
and evaluation of regional and local health information
networks to facilitate the electronic exchange of information
across health care settings and improve the quality of health
care;
``(E) provide technical assistance for the development and
dissemination of solutions to barriers to the exchange of
electronic health information; and
``(F) learn about effective strategies to adopt and utilize
health information technology in medically underserved
communities.
``(c) Health Information Technology Regional Extension Centers.--
``(1) In general.--The Secretary shall provide assistance for
the creation and support of regional centers (in this subsection
referred to as `regional centers') to provide technical assistance
and disseminate best practices and other information learned from
the Center to support and accelerate efforts to adopt, implement,
and effectively utilize health information technology that allows
for the electronic exchange and use of information in compliance
with standards, implementation specifications, and certification
criteria adopted under section 3004. Activities conducted under
this subsection shall be consistent with the strategic plan
developed by the National Coordinator, (and, as available) under
section 3001.
``(2) Affiliation.--Regional centers shall be affiliated with
any United States-based nonprofit institution or organization, or
group thereof, that applies and is awarded financial assistance
under this section. Individual awards shall be decided on the basis
of merit.
``(3) Objective.--The objective of the regional centers is to
enhance and promote the adoption of health information technology
through--
``(A) assistance with the implementation, effective use,
upgrading, and ongoing maintenance of health information
technology, including electronic health records, to healthcare
providers nationwide;
``(B) broad participation of individuals from industry,
universities, and State governments;
``(C) active dissemination of best practices and research
on the implementation, effective use, upgrading, and ongoing
maintenance of health information technology, including
electronic health records, to health care providers in order to
improve the quality of healthcare and protect the privacy and
security of health information;
``(D) participation, to the extent practicable, in health
information exchanges;
``(E) utilization, when appropriate, of the expertise and
capability that exists in Federal agencies other than the
Department; and
``(F) integration of health information technology,
including electronic health records, into the initial and
ongoing training of health professionals and others in the
healthcare industry that would be instrumental to improving the
quality of healthcare through the smooth and accurate
electronic use and exchange of health information.
``(4) Regional assistance.--Each regional center shall aim to
provide assistance and education to all providers in a region, but
shall prioritize any direct assistance first to the following:
``(A) Public or not-for-profit hospitals or critical access
hospitals.
``(B) Federally qualified health centers (as defined in
section 1861(aa)(4) of the Social Security Act).
``(C) Entities that are located in rural and other areas
that serve uninsured, underinsured, and medically underserved
individuals (regardless of whether such area is urban or
rural).
``(D) Individual or small group practices (or a consortium
thereof) that are primarily focused on primary care.
``(5) Financial support.--The Secretary may provide financial
support to any regional center created under this subsection for a
period not to exceed four years. The Secretary may not provide more
than 50 percent of the capital and annual operating and maintenance
funds required to create and maintain such a center, except in an
instance of national economic conditions which would render this
cost-share requirement detrimental to the program and upon
notification to Congress as to the justification to waive the cost-
share requirement.
``(6) Notice of program description and availability of
funds.--The Secretary shall publish in the Federal Register, not
later than 90 days after the date of the enactment of this title, a
draft description of the program for establishing regional centers
under this subsection. Such description shall include the
following:
``(A) A detailed explanation of the program and the
programs goals.
``(B) Procedures to be followed by the applicants.
``(C) Criteria for determining qualified applicants.
``(D) Maximum support levels expected to be available to
centers under the program.
``(7) Application review.--The Secretary shall subject each
application under this subsection to merit review. In making a
decision whether to approve such application and provide financial
support, the Secretary shall consider at a minimum the merits of
the application, including those portions of the application
regarding--
``(A) the ability of the applicant to provide assistance
under this subsection and utilization of health information
technology appropriate to the needs of particular categories of
health care providers;
``(B) the types of service to be provided to health care
providers;
``(C) geographical diversity and extent of service area;
and
``(D) the percentage of funding and amount of in-kind
commitment from other sources.
``(8) Biennial evaluation.--Each regional center which receives
financial assistance under this subsection shall be evaluated
biennially by an evaluation panel appointed by the Secretary. Each
evaluation panel shall be composed of private experts, none of whom
shall be connected with the center involved, and of Federal
officials. Each evaluation panel shall measure the involved
center's performance against the objective specified in paragraph
(3). The Secretary shall not continue to provide funding to a
regional center unless its evaluation is overall positive.
``(9) Continuing support.--After the second year of assistance
under this subsection, a regional center may receive additional
support under this subsection if it has received positive
evaluations and a finding by the Secretary that continuation of
Federal funding to the center was in the best interest of provision
of health information technology extension services.
``SEC. 3013. STATE GRANTS TO PROMOTE HEALTH INFORMATION TECHNOLOGY.
``(a) In General.--The Secretary, acting through the National
Coordinator, shall establish a program in accordance with this section
to facilitate and expand the electronic movement and use of health
information among organizations according to nationally recognized
standards.
``(b) Planning Grants.--The Secretary may award a grant to a State
or qualified State-designated entity (as described in subsection (f))
that submits an application to the Secretary at such time, in such
manner, and containing such information as the Secretary may specify,
for the purpose of planning activities described in subsection (d).
``(c) Implementation Grants.--The Secretary may award a grant to a
State or qualified State designated entity that--
``(1) has submitted, and the Secretary has approved, a plan
described in subsection (e) (regardless of whether such plan was
prepared using amounts awarded under subsection (b); and
``(2) submits an application at such time, in such manner, and
containing such information as the Secretary may specify.
``(d) Use of Funds.--Amounts received under a grant under
subsection (c) shall be used to conduct activities to facilitate and
expand the electronic movement and use of health information among
organizations according to nationally recognized standards through
activities that include--
``(1) enhancing broad and varied participation in the
authorized and secure nationwide electronic use and exchange of
health information;
``(2) identifying State or local resources available towards a
nationwide effort to promote health information technology;
``(3) complementing other Federal grants, programs, and efforts
towards the promotion of health information technology;
``(4) providing technical assistance for the development and
dissemination of solutions to barriers to the exchange of
electronic health information;
``(5) promoting effective strategies to adopt and utilize
health information technology in medically underserved communities;
``(6) assisting patients in utilizing health information
technology;
``(7) encouraging clinicians to work with Health Information
Technology Regional Extension Centers as described in section 3012,
to the extent they are available and valuable;
``(8) supporting public health agencies' authorized use of and
access to electronic health information;
``(9) promoting the use of electronic health records for
quality improvement including through quality measures reporting;
and
``(10) such other activities as the Secretary may specify.
``(e) Plan.--
``(1) In general.--A plan described in this subsection is a
plan that describes the activities to be carried out by a State or
by the qualified State-designated entity within such State to
facilitate and expand the electronic movement and use of health
information among organizations according to nationally recognized
standards and implementation specifications.
``(2) Required elements.--A plan described in paragraph (1)
shall--
``(A) be pursued in the public interest;
``(B) be consistent with the strategic plan developed by
the National Coordinator, (and, as available) under section
3001;
``(C) include a description of the ways the State or
qualified State-designated entity will carry out the activities
described in subsection (b); and
``(D) contain such elements as the Secretary may require.
``(f) Qualified State-Designated Entity.--For purposes of this
section, to be a qualified State-designated entity, with respect to a
State, an entity shall--
``(1) be designated by the State as eligible to receive awards
under this section;
``(2) be a not-for-profit entity with broad stakeholder
representation on its governing board;
``(3) demonstrate that one of its principal goals is to use
information technology to improve health care quality and
efficiency through the authorized and secure electronic exchange
and use of health information;
``(4) adopt nondiscrimination and conflict of interest policies
that demonstrate a commitment to open, fair, and nondiscriminatory
participation by stakeholders; and
``(5) conform to such other requirements as the Secretary may
establish.
``(g) Required Consultation.--In carrying out activities described
in subsections (b) and (c), a State or qualified State-designated
entity shall consult with and consider the recommendations of--
``(1) health care providers (including providers that provide
services to low income and underserved populations);
``(2) health plans;
``(3) patient or consumer organizations that represent the
population to be served;
``(4) health information technology vendors;
``(5) health care purchasers and employers;
``(6) public health agencies;
``(7) health professions schools, universities and colleges;
``(8) clinical researchers;
``(9) other users of health information technology such as the
support and clerical staff of providers and others involved in the
care and care coordination of patients; and
``(10) such other entities, as may be determined appropriate by
the Secretary.
``(h) Continuous Improvement.--The Secretary shall annually
evaluate the activities conducted under this section and shall, in
awarding grants under this section, implement the lessons learned from
such evaluation in a manner so that awards made subsequent to each such
evaluation are made in a manner that, in the determination of the
Secretary, will lead towards the greatest improvement in quality of
care, decrease in costs, and the most effective authorized and secure
electronic exchange of health information.
``(i) Required Match.--
``(1) In general.--For a fiscal year (beginning with fiscal
year 2011), the Secretary may not make a grant under this section
to a State unless the State agrees to make available non-Federal
contributions (which may include in-kind contributions) toward the
costs of a grant awarded under subsection (c) in an amount equal
to--
``(A) for fiscal year 2011, not less than $1 for each $10
of Federal funds provided under the grant;
``(B) for fiscal year 2012, not less than $1 for each $7 of
Federal funds provided under the grant; and
``(C) for fiscal year 2013 and each subsequent fiscal year,
not less than $1 for each $3 of Federal funds provided under
the grant.
``(2) Authority to require state match for fiscal years before
fiscal year 2011.--For any fiscal year during the grant program
under this section before fiscal year 2011, the Secretary may
determine the extent to which there shall be required a non-Federal
contribution from a State receiving a grant under this section.
``SEC. 3014. COMPETITIVE GRANTS TO STATES AND INDIAN TRIBES FOR THE
DEVELOPMENT OF LOAN PROGRAMS TO FACILITATE THE WIDESPREAD
ADOPTION OF CERTIFIED EHR TECHNOLOGY.
``(a) In General.--The National Coordinator may award competitive
grants to eligible entities for the establishment of programs for loans
to health care providers to conduct the activities described in
subsection (e).
``(b) Eligible Entity Defined.--For purposes of this subsection,
the term `eligible entity' means a State or Indian tribe (as defined in
the Indian Self-Determination and Education Assistance Act) that--
``(1) submits to the National Coordinator an application at
such time, in such manner, and containing such information as the
National Coordinator may require;
``(2) submits to the National Coordinator a strategic plan in
accordance with subsection (d) and provides to the National
Coordinator assurances that the entity will update such plan
annually in accordance with such subsection;
``(3) provides assurances to the National Coordinator that the
entity will establish a Loan Fund in accordance with subsection
(c);
``(4) provides assurances to the National Coordinator that the
entity will not provide a loan from the Loan Fund to a health care
provider unless the provider agrees to--
``(A) submit reports on quality measures adopted by the
Federal Government (by not later than 90 days after the date on
which such measures are adopted), to--
``(i) the Administrator of the Centers for Medicare &
Medicaid Services (or his or her designee), in the case of
an entity participating in the Medicare program under title
XVIII of the Social Security Act or the Medicaid program
under title XIX of such Act; or
``(ii) the Secretary in the case of other entities;
``(B) demonstrate to the satisfaction of the Secretary
(through criteria established by the Secretary) that any
certified EHR technology purchased, improved, or otherwise
financially supported under a loan under this section is used
to exchange health information in a manner that, in accordance
with law and standards (as adopted under section 3004)
applicable to the exchange of information, improves the quality
of health care, such as promoting care coordination; and
``(C) comply with such other requirements as the entity or
the Secretary may require;
``(D) include a plan on how health care providers involved
intend to maintain and support the certified EHR technology
over time;
``(E) include a plan on how the health care providers
involved intend to maintain and support the certified EHR
technology that would be purchased with such loan, including
the type of resources expected to be involved and any such
other information as the State or Indian Tribe, respectively,
may require; and
``(5) agrees to provide matching funds in accordance with
subsection (h).
``(c) Establishment of Fund.--For purposes of subsection (b)(3), an
eligible entity shall establish a certified EHR technology loan fund
(referred to in this subsection as a `Loan Fund') and comply with the
other requirements contained in this section. A grant to an eligible
entity under this section shall be deposited in the Loan Fund
established by the eligible entity. No funds authorized by other
provisions of this title to be used for other purposes specified in
this title shall be deposited in any Loan Fund.
``(d) Strategic Plan.--
``(1) In general.--For purposes of subsection (b)(2), a
strategic plan of an eligible entity under this subsection shall
identify the intended uses of amounts available to the Loan Fund of
such entity.
``(2) Contents.--A strategic plan under paragraph (1), with
respect to a Loan Fund of an eligible entity, shall include for a
year the following:
``(A) A list of the projects to be assisted through the
Loan Fund during such year.
``(B) A description of the criteria and methods established
for the distribution of funds from the Loan Fund during the
year.
``(C) A description of the financial status of the Loan
Fund as of the date of submission of the plan.
``(D) The short-term and long-term goals of the Loan Fund.
``(e) Use of Funds.--Amounts deposited in a Loan Fund, including
loan repayments and interest earned on such amounts, shall be used only
for awarding loans or loan guarantees, making reimbursements described
in subsection (g)(4)(A), or as a source of reserve and security for
leveraged loans, the proceeds of which are deposited in the Loan Fund
established under subsection (c). Loans under this section may be used
by a health care provider to--
``(1) facilitate the purchase of certified EHR technology;
``(2) enhance the utilization of certified EHR technology
(which may include costs associated with upgrading health
information technology so that it meets criteria necessary to be a
certified EHR technology);
``(3) train personnel in the use of such technology; or
``(4) improve the secure electronic exchange of health
information.
``(f) Types of Assistance.--Except as otherwise limited by
applicable State law, amounts deposited into a Loan Fund under this
section may only be used for the following:
``(1) To award loans that comply with the following:
``(A) The interest rate for each loan shall not exceed the
market interest rate.
``(B) The principal and interest payments on each loan
shall commence not later than 1 year after the date the loan
was awarded, and each loan shall be fully amortized not later
than 10 years after the date of the loan.
``(C) The Loan Fund shall be credited with all payments of
principal and interest on each loan awarded from the Loan Fund.
``(2) To guarantee, or purchase insurance for, a local
obligation (all of the proceeds of which finance a project eligible
for assistance under this subsection) if the guarantee or purchase
would improve credit market access or reduce the interest rate
applicable to the obligation involved.
``(3) As a source of revenue or security for the payment of
principal and interest on revenue or general obligation bonds
issued by the eligible entity if the proceeds of the sale of the
bonds will be deposited into the Loan Fund.
``(4) To earn interest on the amounts deposited into the Loan
Fund.
``(5) To make reimbursements described in subsection (g)(4)(A).
``(g) Administration of Loan Funds.--
``(1) Combined financial administration.--An eligible entity
may (as a convenience and to avoid unnecessary administrative
costs) combine, in accordance with applicable State law, the
financial administration of a Loan Fund established under this
subsection with the financial administration of any other revolving
fund established by the entity if otherwise not prohibited by the
law under which the Loan Fund was established.
``(2) Cost of administering fund.--Each eligible entity may
annually use not to exceed 4 percent of the funds provided to the
entity under a grant under this section to pay the reasonable costs
of the administration of the programs under this section, including
the recovery of reasonable costs expended to establish a Loan Fund
which are incurred after the date of the enactment of this title.
``(3) Guidance and regulations.--The National Coordinator shall
publish guidance and promulgate regulations as may be necessary to
carry out the provisions of this section, including--
``(A) provisions to ensure that each eligible entity
commits and expends funds allotted to the entity under this
section as efficiently as possible in accordance with this
title and applicable State laws; and
``(B) guidance to prevent waste, fraud, and abuse.
``(4) Private sector contributions.--
``(A) In general.--A Loan Fund established under this
section may accept contributions from private sector entities,
except that such entities may not specify the recipient or
recipients of any loan issued under this subsection. An
eligible entity may agree to reimburse a private sector entity
for any contribution made under this subparagraph, except that
the amount of such reimbursement may not be greater than the
principal amount of the contribution made.
``(B) Availability of information.--An eligible entity
shall make publicly available the identity of, and amount
contributed by, any private sector entity under subparagraph
(A) and may issue letters of commendation or make other awards
(that have no financial value) to any such entity.
``(h) Matching Requirements.--
``(1) In general.--The National Coordinator may not make a
grant under subsection (a) to an eligible entity unless the entity
agrees to make available (directly or through donations from public
or private entities) non-Federal contributions in cash to the costs
of carrying out the activities for which the grant is awarded in an
amount equal to not less than $1 for each $5 of Federal funds
provided under the grant.
``(2) Determination of amount of non-federal contribution.--In
determining the amount of non-Federal contributions that an
eligible entity has provided pursuant to subparagraph (A), the
National Coordinator may not include any amounts provided to the
entity by the Federal Government.
``(i) Effective Date.--The Secretary may not make an award under
this section prior to January 1, 2010.
``SEC. 3015. DEMONSTRATION PROGRAM TO INTEGRATE INFORMATION TECHNOLOGY
INTO CLINICAL EDUCATION.
``(a) In General.--The Secretary may award grants under this
section to carry out demonstration projects to develop academic
curricula integrating certified EHR technology in the clinical
education of health professionals. Such awards shall be made on a
competitive basis and pursuant to peer review.
``(b) Eligibility.--To be eligible to receive a grant under
subsection (a), an entity shall--
``(1) submit to the Secretary an application at such time, in
such manner, and containing such information as the Secretary may
require;
``(2) submit to the Secretary a strategic plan for integrating
certified EHR technology in the clinical education of health
professionals to reduce medical errors, increase access to
prevention, reduce chronic diseases, and enhance health care
quality;
``(3) be--
``(A) a school of medicine, osteopathic medicine,
dentistry, or pharmacy, a graduate program in behavioral or
mental health, or any other graduate health professions school;
``(B) a graduate school of nursing or physician assistant
studies;
``(C) a consortium of two or more schools described in
subparagraph (A) or (B); or
``(D) an institution with a graduate medical education
program in medicine, osteopathic medicine, dentistry, pharmacy,
nursing, or physician assistance studies;
``(4) provide for the collection of data regarding the
effectiveness of the demonstration project to be funded under the
grant in improving the safety of patients, the efficiency of health
care delivery, and in increasing the likelihood that graduates of
the grantee will adopt and incorporate certified EHR technology, in
the delivery of health care services; and
``(5) provide matching funds in accordance with subsection (d).
``(c) Use of Funds.--
``(1) In general.--With respect to a grant under subsection
(a), an eligible entity shall--
``(A) use grant funds in collaboration with 2 or more
disciplines; and
``(B) use grant funds to integrate certified EHR technology
into community-based clinical education.
``(2) Limitation.--An eligible entity shall not use amounts
received under a grant under subsection (a) to purchase hardware,
software, or services.
``(d) Financial Support.--The Secretary may not provide more than
50 percent of the costs of any activity for which assistance is
provided under subsection (a), except in an instance of national
economic conditions which would render the cost-share requirement under
this subsection detrimental to the program and upon notification to
Congress as to the justification to waive the cost-share requirement.
``(e) Evaluation.--The Secretary shall take such action as may be
necessary to evaluate the projects funded under this section and
publish, make available, and disseminate the results of such
evaluations on as wide a basis as is practicable.
``(f) Reports.--Not later than 1 year after the date of enactment
of this title, and annually thereafter, the Secretary shall submit to
the Committee on Health, Education, Labor, and Pensions and the
Committee on Finance of the Senate, and the Committee on Energy and
Commerce of the House of Representatives a report that--
``(1) describes the specific projects established under this
section; and
``(2) contains recommendations for Congress based on the
evaluation conducted under subsection (e).
``SEC. 3016. INFORMATION TECHNOLOGY PROFESSIONALS IN HEALTH CARE.
``(a) In General.--The Secretary, in consultation with the Director
of the National Science Foundation, shall provide assistance to
institutions of higher education (or consortia thereof) to establish or
expand medical health informatics education programs, including
certification, undergraduate, and masters degree programs, for both
health care and information technology students to ensure the rapid and
effective utilization and development of health information
technologies (in the United States health care infrastructure).
``(b) Activities.--Activities for which assistance may be provided
under subsection (a) may include the following:
``(1) Developing and revising curricula in medical health
informatics and related disciplines.
``(2) Recruiting and retaining students to the program
involved.
``(3) Acquiring equipment necessary for student instruction in
these programs, including the installation of testbed networks for
student use.
``(4) Establishing or enhancing bridge programs in the health
informatics fields between community colleges and universities.
``(c) Priority.--In providing assistance under subsection (a), the
Secretary shall give preference to the following:
``(1) Existing education and training programs.
``(2) Programs designed to be completed in less than six
months.
``SEC. 3017. GENERAL GRANT AND LOAN PROVISIONS.
``(a) Reports.--The Secretary may require that an entity receiving
assistance under this subtitle shall submit to the Secretary, not later
than the date that is 1 year after the date of receipt of such
assistance, a report that includes--
``(1) an analysis of the effectiveness of the activities for
which the entity receives such assistance, as compared to the goals
for such activities; and
``(2) an analysis of the impact of the project on health care
quality and safety.
``(b) Requirement to Improve Quality of Care and Decrease in
Costs.--The National Coordinator shall annually evaluate the activities
conducted under this subtitle and shall, in awarding grants, implement
the lessons learned from such evaluation in a manner so that awards
made subsequent to each such evaluation are made in a manner that, in
the determination of the National Coordinator, will result in the
greatest improvement in the quality and efficiency of health care.
``SEC. 3018. AUTHORIZATION FOR APPROPRIATIONS.
``For the purposes of carrying out this subtitle, there is
authorized to be appropriated such sums as may be necessary for each of
the fiscal years 2009 through 2013.''.
Subtitle D--Privacy
SEC. 13400. DEFINITIONS.
In this subtitle, except as specified otherwise:
(1) Breach.--
(A) In general.--The term ``breach'' means the unauthorized
acquisition, access, use, or disclosure of protected health
information which compromises the security or privacy of such
information, except where an unauthorized person to whom such
information is disclosed would not reasonably have been able to
retain such information.
(B) Exceptions.--The term ``breach'' does not include--
(i) any unintentional acquisition, access, or use of
protected health information by an employee or individual
acting under the authority of a covered entity or business
associate if--
(I) such acquisition, access, or use was made in
good faith and within the course and scope of the
employment or other professional relationship of such
employee or individual, respectively, with the covered
entity or business associate; and
(II) such information is not further acquired,
accessed, used, or disclosed by any person; or
(ii) any inadvertent disclosure from an individual who
is otherwise authorized to access protected health
information at a facility operated by a covered entity or
business associate to another similarly situated individual
at same facility; and
(iii) any such information received as a result of such
disclosure is not further acquired, accessed, used, or
disclosed without authorization by any person.
(2) Business associate.--The term ``business associate'' has
the meaning given such term in section 160.103 of title 45, Code of
Federal Regulations.
(3) Covered entity.--The term ``covered entity'' has the
meaning given such term in section 160.103 of title 45, Code of
Federal Regulations.
(4) Disclose.--The terms ``disclose'' and ``disclosure'' have
the meaning given the term ``disclosure'' in section 160.103 of
title 45, Code of Federal Regulations.
(5) Electronic health record.--The term ``electronic health
record'' means an electronic record of health-related information
on an individual that is created, gathered, managed, and consulted
by authorized health care clinicians and staff.
(6) Health care operations.--The term ``health care operation''
has the meaning given such term in section 164.501 of title 45,
Code of Federal Regulations.
(7) Health care provider.--The term ``health care provider''
has the meaning given such term in section 160.103 of title 45,
Code of Federal Regulations.
(8) Health plan.--The term ``health plan'' has the meaning
given such term in section 160.103 of title 45, Code of Federal
Regulations.
(9) National coordinator.--The term ``National Coordinator''
means the head of the Office of the National Coordinator for Health
Information Technology established under section 3001(a) of the
Public Health Service Act, as added by section 13101.
(10) Payment.--The term ``payment'' has the meaning given such
term in section 164.501 of title 45, Code of Federal Regulations.
(11) Personal health record.--The term ``personal health
record'' means an electronic record of PHR identifiable health
information (as defined in section 13407(f)(2)) on an individual
that can be drawn from multiple sources and that is managed,
shared, and controlled by or primarily for the individual.
(12) Protected health information.--The term ``protected health
information'' has the meaning given such term in section 160.103 of
title 45, Code of Federal Regulations.
(13) Secretary.--The term ``Secretary'' means the Secretary of
Health and Human Services.
(14) Security.--The term ``security'' has the meaning given
such term in section 164.304 of title 45, Code of Federal
Regulations.
(15) State.--The term ``State'' means each of the several
States, the District of Columbia, Puerto Rico, the Virgin Islands,
Guam, American Samoa, and the Northern Mariana Islands.
(16) Treatment.--The term ``treatment'' has the meaning given
such term in section 164.501 of title 45, Code of Federal
Regulations.
(17) Use.--The term ``use'' has the meaning given such term in
section 160.103 of title 45, Code of Federal Regulations.
(18) Vendor of personal health records.--The term ``vendor of
personal health records'' means an entity, other than a covered
entity (as defined in paragraph (3)), that offers or maintains a
personal health record.
PART 1--IMPROVED PRIVACY PROVISIONS AND SECURITY PROVISIONS
SEC. 13401. APPLICATION OF SECURITY PROVISIONS AND PENALTIES TO
BUSINESS ASSOCIATES OF COVERED ENTITIES; ANNUAL GUIDANCE
ON SECURITY PROVISIONS.
(a) Application of Security Provisions.--Sections 164.308, 164.310,
164.312, and 164.316 of title 45, Code of Federal Regulations, shall
apply to a business associate of a covered entity in the same manner
that such sections apply to the covered entity. The additional
requirements of this title that relate to security and that are made
applicable with respect to covered entities shall also be applicable to
such a business associate and shall be incorporated into the business
associate agreement between the business associate and the covered
entity.
(b) Application of Civil and Criminal Penalties.--In the case of a
business associate that violates any security provision specified in
subsection (a), sections 1176 and 1177 of the Social Security Act (42
U.S.C. 1320d-5, 1320d-6) shall apply to the business associate with
respect to such violation in the same manner such sections apply to a
covered entity that violates such security provision.
(c) Annual Guidance.--For the first year beginning after the date
of the enactment of this Act and annually thereafter, the Secretary of
Health and Human Services shall, after consultation with stakeholders,
annually issue guidance on the most effective and appropriate technical
safeguards for use in carrying out the sections referred to in
subsection (a) and the security standards in subpart C of part 164 of
title 45, Code of Federal Regulations, including the use of standards
developed under section 3002(b)(2)(B)(vi) of the Public Health Service
Act, as added by section 13101 of this Act, as such provisions are in
effect as of the date before the enactment of this Act.
SEC. 13402. NOTIFICATION IN THE CASE OF BREACH.
(a) In General.--A covered entity that accesses, maintains,
retains, modifies, records, stores, destroys, or otherwise holds, uses,
or discloses unsecured protected health information (as defined in
subsection (h)(1)) shall, in the case of a breach of such information
that is discovered by the covered entity, notify each individual whose
unsecured protected health information has been, or is reasonably
believed by the covered entity to have been, accessed, acquired, or
disclosed as a result of such breach.
(b) Notification of Covered Entity by Business Associate.--A
business associate of a covered entity that accesses, maintains,
retains, modifies, records, stores, destroys, or otherwise holds, uses,
or discloses unsecured protected health information shall, following
the discovery of a breach of such information, notify the covered
entity of such breach. Such notice shall include the identification of
each individual whose unsecured protected health information has been,
or is reasonably believed by the business associate to have been,
accessed, acquired, or disclosed during such breach.
(c) Breaches Treated as Discovered.--For purposes of this section,
a breach shall be treated as discovered by a covered entity or by a
business associate as of the first day on which such breach is known to
such entity or associate, respectively, (including any person, other
than the individual committing the breach, that is an employee,
officer, or other agent of such entity or associate, respectively) or
should reasonably have been known to such entity or associate (or
person) to have occurred.
(d) Timeliness of Notification.--
(1) In general.--Subject to subsection (g), all notifications
required under this section shall be made without unreasonable
delay and in no case later than 60 calendar days after the
discovery of a breach by the covered entity involved (or business
associate involved in the case of a notification required under
subsection (b)).
(2) Burden of proof.--The covered entity involved (or business
associate involved in the case of a notification required under
subsection (b)), shall have the burden of demonstrating that all
notifications were made as required under this part, including
evidence demonstrating the necessity of any delay.
(e) Methods of Notice.--
(1) Individual notice.--Notice required under this section to
be provided to an individual, with respect to a breach, shall be
provided promptly and in the following form:
(A) Written notification by first-class mail to the
individual (or the next of kin of the individual if the
individual is deceased) at the last known address of the
individual or the next of kin, respectively, or, if specified
as a preference by the individual, by electronic mail. The
notification may be provided in one or more mailings as
information is available.
(B) In the case in which there is insufficient, or out-of-
date contact information (including a phone number, email
address, or any other form of appropriate communication) that
precludes direct written (or, if specified by the individual
under subparagraph (A), electronic) notification to the
individual, a substitute form of notice shall be provided,
including, in the case that there are 10 or more individuals
for which there is insufficient or out-of-date contact
information, a conspicuous posting for a period determined by
the Secretary on the home page of the Web site of the covered
entity involved or notice in major print or broadcast media,
including major media in geographic areas where the individuals
affected by the breach likely reside. Such a notice in media or
web posting will include a toll-free phone number where an
individual can learn whether or not the individual's unsecured
protected health information is possibly included in the
breach.
(C) In any case deemed by the covered entity involved to
require urgency because of possible imminent misuse of
unsecured protected health information, the covered entity, in
addition to notice provided under subparagraph (A), may provide
information to individuals by telephone or other means, as
appropriate.
(2) Media notice.--Notice shall be provided to prominent media
outlets serving a State or jurisdiction, following the discovery of
a breach described in subsection (a), if the unsecured protected
health information of more than 500 residents of such State or
jurisdiction is, or is reasonably believed to have been, accessed,
acquired, or disclosed during such breach.
(3) Notice to secretary.--Notice shall be provided to the
Secretary by covered entities of unsecured protected health
information that has been acquired or disclosed in a breach. If the
breach was with respect to 500 or more individuals than such notice
must be provided immediately. If the breach was with respect to
less than 500 individuals, the covered entity may maintain a log of
any such breach occurring and annually submit such a log to the
Secretary documenting such breaches occurring during the year
involved.
(4) Posting on hhs public website.--The Secretary shall make
available to the public on the Internet website of the Department
of Health and Human Services a list that identifies each covered
entity involved in a breach described in subsection (a) in which
the unsecured protected health information of more than 500
individuals is acquired or disclosed.
(f) Content of Notification.--Regardless of the method by which
notice is provided to individuals under this section, notice of a
breach shall include, to the extent possible, the following:
(1) A brief description of what happened, including the date of
the breach and the date of the discovery of the breach, if known.
(2) A description of the types of unsecured protected health
information that were involved in the breach (such as full name,
Social Security number, date of birth, home address, account
number, or disability code).
(3) The steps individuals should take to protect themselves
from potential harm resulting from the breach.
(4) A brief description of what the covered entity involved is
doing to investigate the breach, to mitigate losses, and to protect
against any further breaches.
(5) Contact procedures for individuals to ask questions or
learn additional information, which shall include a toll-free
telephone number, an e-mail address, Web site, or postal address.
(g) Delay of Notification Authorized for Law Enforcement
Purposes.--If a law enforcement official determines that a
notification, notice, or posting required under this section would
impede a criminal investigation or cause damage to national security,
such notification, notice, or posting shall be delayed in the same
manner as provided under section 164.528(a)(2) of title 45, Code of
Federal Regulations, in the case of a disclosure covered under such
section.
(h) Unsecured Protected Health Information.--
(1) Definition.--
(A) In general.--Subject to subparagraph (B), for purposes
of this section, the term ``unsecured protected health
information'' means protected health information that is not
secured through the use of a technology or methodology
specified by the Secretary in the guidance issued under
paragraph (2).
(B) Exception in case timely guidance not issued.--In the
case that the Secretary does not issue guidance under paragraph
(2) by the date specified in such paragraph, for purposes of
this section, the term ``unsecured protected health
information'' shall mean protected health information that is
not secured by a technology standard that renders protected
health information unusable, unreadable, or indecipherable to
unauthorized individuals and is developed or endorsed by a
standards developing organization that is accredited by the
American National Standards Institute.
(2) Guidance.--For purposes of paragraph (1) and section
13407(f)(3), not later than the date that is 60 days after the date
of the enactment of this Act, the Secretary shall, after
consultation with stakeholders, issue (and annually update)
guidance specifying the technologies and methodologies that render
protected health information unusable, unreadable, or
indecipherable to unauthorized individuals, including the use of
standards developed under section 3002(b)(2)(B)(vi) of the Public
Health Service Act, as added by section 13101 of this Act.
(i) Report to Congress on Breaches.--
(1) In general.--Not later than 12 months after the date of the
enactment of this Act and annually thereafter, the Secretary shall
prepare and submit to the Committee on Finance and the Committee on
Health, Education, Labor, and Pensions of the Senate and the
Committee on Ways and Means and the Committee on Energy and
Commerce of the House of Representatives a report containing the
information described in paragraph (2) regarding breaches for which
notice was provided to the Secretary under subsection (e)(3).
(2) Information.--The information described in this paragraph
regarding breaches specified in paragraph (1) shall include--
(A) the number and nature of such breaches; and
(B) actions taken in response to such breaches.
(j) Regulations; Effective Date.--To carry out this section, the
Secretary of Health and Human Services shall promulgate interim final
regulations by not later than the date that is 180 days after the date
of the enactment of this title. The provisions of this section shall
apply to breaches that are discovered on or after the date that is 30
days after the date of publication of such interim final regulations.
SEC. 13403. EDUCATION ON HEALTH INFORMATION PRIVACY.
(a) Regional Office Privacy Advisors.--Not later than 6 months
after the date of the enactment of this Act, the Secretary shall
designate an individual in each regional office of the Department of
Health and Human Services to offer guidance and education to covered
entities, business associates, and individuals on their rights and
responsibilities related to Federal privacy and security requirements
for protected health information.
(b) Education Initiative on Uses of Health Information.--Not later
than 12 months after the date of the enactment of this Act, the Office
for Civil Rights within the Department of Health and Human Services
shall develop and maintain a multi-faceted national education
initiative to enhance public transparency regarding the uses of
protected health information, including programs to educate individuals
about the potential uses of their protected health information, the
effects of such uses, and the rights of individuals with respect to
such uses. Such programs shall be conducted in a variety of languages
and present information in a clear and understandable manner.
SEC. 13404. APPLICATION OF PRIVACY PROVISIONS AND PENALTIES TO BUSINESS
ASSOCIATES OF COVERED ENTITIES.
(a) Application of Contract Requirements.--In the case of a
business associate of a covered entity that obtains or creates
protected health information pursuant to a written contract (or other
written arrangement) described in section 164.502(e)(2) of title 45,
Code of Federal Regulations, with such covered entity, the business
associate may use and disclose such protected health information only
if such use or disclosure, respectively, is in compliance with each
applicable requirement of section 164.504(e) of such title. The
additional requirements of this subtitle that relate to privacy and
that are made applicable with respect to covered entities shall also be
applicable to such a business associate and shall be incorporated into
the business associate agreement between the business associate and the
covered entity.
(b) Application of Knowledge Elements Associated With Contracts.--
Section 164.504(e)(1)(ii) of title 45, Code of Federal Regulations,
shall apply to a business associate described in subsection (a), with
respect to compliance with such subsection, in the same manner that
such section applies to a covered entity, with respect to compliance
with the standards in sections 164.502(e) and 164.504(e) of such title,
except that in applying such section 164.504(e)(1)(ii) each reference
to the business associate, with respect to a contract, shall be treated
as a reference to the covered entity involved in such contract.
(c) Application of Civil and Criminal Penalties.--In the case of a
business associate that violates any provision of subsection (a) or
(b), the provisions of sections 1176 and 1177 of the Social Security
Act (42 U.S.C. 1320d-5, 1320d-6) shall apply to the business associate
with respect to such violation in the same manner as such provisions
apply to a person who violates a provision of part C of title XI of
such Act.
SEC. 13405. RESTRICTIONS ON CERTAIN DISCLOSURES AND SALES OF HEALTH
INFORMATION; ACCOUNTING OF CERTAIN PROTECTED HEALTH
INFORMATION DISCLOSURES; ACCESS TO CERTAIN INFORMATION IN
ELECTRONIC FORMAT.
(a) Requested Restrictions on Certain Disclosures of Health
Information.--In the case that an individual requests under paragraph
(a)(1)(i)(A) of section 164.522 of title 45, Code of Federal
Regulations, that a covered entity restrict the disclosure of the
protected health information of the individual, notwithstanding
paragraph (a)(1)(ii) of such section, the covered entity must comply
with the requested restriction if--
(1) except as otherwise required by law, the disclosure is to a
health plan for purposes of carrying out payment or health care
operations (and is not for purposes of carrying out treatment); and
(2) the protected health information pertains solely to a
health care item or service for which the health care provider
involved has been paid out of pocket in full.
(b) Disclosures Required to Be Limited to the Limited Data Set or
the Minimum Necessary.--
(1) In general.--
(A) In general.--Subject to subparagraph (B), a covered
entity shall be treated as being in compliance with section
164.502(b)(1) of title 45, Code of Federal Regulations, with
respect to the use, disclosure, or request of protected health
information described in such section, only if the covered
entity limits such protected health information, to the extent
practicable, to the limited data set (as defined in section
164.514(e)(2) of such title) or, if needed by such entity, to
the minimum necessary to accomplish the intended purpose of
such use, disclosure, or request, respectively.
(B) Guidance.--Not later than 18 months after the date of
the enactment of this section, the Secretary shall issue
guidance on what constitutes ``minimum necessary'' for purposes
of subpart E of part 164 of title 45, Code of Federal
Regulation. In issuing such guidance the Secretary shall take
into consideration the guidance under section 13424(c) and the
information necessary to improve patient outcomes and to
detect, prevent, and manage chronic disease.
(C) Sunset.--Subparagraph (A) shall not apply on and after
the effective date on which the Secretary issues the guidance
under subparagraph (B).
(2) Determination of minimum necessary.--For purposes of
paragraph (1), in the case of the disclosure of protected health
information, the covered entity or business associate disclosing
such information shall determine what constitutes the minimum
necessary to accomplish the intended purpose of such disclosure.
(3) Application of exceptions.--The exceptions described in
section 164.502(b)(2) of title 45, Code of Federal Regulations,
shall apply to the requirement under paragraph (1) as of the
effective date described in section 13423 in the same manner that
such exceptions apply to section 164.502(b)(1) of such title before
such date.
(4) Rule of construction.--Nothing in this subsection shall be
construed as affecting the use, disclosure, or request of protected
health information that has been de-identified.
(c) Accounting of Certain Protected Health Information Disclosures
Required if Covered Entity Uses Electronic Health Record.--
``(1) In general.--In applying section 164.528 of title 45,
Code of Federal Regulations, in the case that a covered entity uses
or maintains an electronic health record with respect to protected
health information--
``(A) the exception under paragraph (a)(1)(i) of such
section shall not apply to disclosures through an electronic
health record made by such entity of such information; and
``(B) an individual shall have a right to receive an
accounting of disclosures described in such paragraph of such
information made by such covered entity during only the three
years prior to the date on which the accounting is requested.
``(2) Regulations.--The Secretary shall promulgate regulations
on what information shall be collected about each disclosure
referred to in paragraph (1), not later than 6 months after the
date on which the Secretary adopts standards on accounting for
disclosure described in the section 3002(b)(2)(B)(iv) of the Public
Health Service Act, as added by section 13101. Such regulations
shall only require such information to be collected through an
electronic health record in a manner that takes into account the
interests of the individuals in learning the circumstances under
which their protected health information is being disclosed and
takes into account the administrative burden of accounting for such
disclosures.
``(3) Process.--In response to an request from an individual
for an accounting, a covered entity shall elect to provide either
an--
``(A) accounting, as specified under paragraph (1), for
disclosures of protected health information that are made by
such covered entity and by a business associate acting on
behalf of the covered entity; or
``(B) accounting, as specified under paragraph (1), for
disclosures that are made by such covered entity and provide a
list of all business associates acting on behalf of the covered
entity, including contact information for such associates (such
as mailing address, phone, and email address).
A business associate included on a list under subparagraph (B)
shall provide an accounting of disclosures (as required under
paragraph (1) for a covered entity) made by the business associate
upon a request made by an individual directly to the business
associate for such an accounting.
``(4) Effective date.--
``(A) Current users of electronic records.--In the case of
a covered entity insofar as it acquired an electronic health
record as of January 1, 2009, paragraph (1) shall apply to
disclosures, with respect to protected health information, made
by the covered entity from such a record on and after January
1, 2014.
``(B) Others.--In the case of a covered entity insofar as
it acquires an electronic health record after January 1, 2009,
paragraph (1) shall apply to disclosures, with respect to
protected health information, made by the covered entity from
such record on and after the later of the following:
``(i) January 1, 2011; or
``(ii) the date that it acquires an electronic health
record.
``(C) Later date.--The Secretary may set an effective date
that is later that the date specified under subparagraph (A) or
(B) if the Secretary determines that such later date is
necessary, but in no case may the date specified under--
``(i) subparagraph (A) be later than 2016; or
``(ii) subparagraph (B) be later than 2013.''
(d) Prohibition on Sale of Electronic Health Records or Protected
Health Information.--
(1) In general.--Except as provided in paragraph (2), a covered
entity or business associate shall not directly or indirectly
receive remuneration in exchange for any protected health
information of an individual unless the covered entity obtained
from the individual, in accordance with section 164.508 of title
45, Code of Federal Regulations, a valid authorization that
includes, in accordance with such section, a specification of
whether the protected health information can be further exchanged
for remuneration by the entity receiving protected health
information of that individual.
(2) Exceptions.--Paragraph (1) shall not apply in the following
cases:
(A) The purpose of the exchange is for public health
activities (as described in section 164.512(b) of title 45,
Code of Federal Regulations).
(B) The purpose of the exchange is for research (as
described in sections 164.501 and 164.512(i) of title 45, Code
of Federal Regulations) and the price charged reflects the
costs of preparation and transmittal of the data for such
purpose.
(C) The purpose of the exchange is for the treatment of the
individual, subject to any regulation that the Secretary may
promulgate to prevent protected health information from
inappropriate access, use, or disclosure.
(D) The purpose of the exchange is the health care
operation specifically described in subparagraph (iv) of
paragraph (6) of the definition of healthcare operations in
section 164.501 of title 45, Code of Federal Regulations.
(E) The purpose of the exchange is for remuneration that is
provided by a covered entity to a business associate for
activities involving the exchange of protected health
information that the business associate undertakes on behalf of
and at the specific request of the covered entity pursuant to a
business associate agreement.
(F) The purpose of the exchange is to provide an individual
with a copy of the individual's protected health information
pursuant to section 164.524 of title 45, Code of Federal
Regulations.
(G) The purpose of the exchange is otherwise determined by
the Secretary in regulations to be similarly necessary and
appropriate as the exceptions provided in subparagraphs (A)
through (F).
(3) Regulations.--Not later than 18 months after the date of
enactment of this title, the Secretary shall promulgate regulations
to carry out this subsection. In promulgating such regulations, the
Secretary--
(A) shall evaluate the impact of restricting the exception
described in paragraph (2)(A) to require that the price charged
for the purposes described in such paragraph reflects the costs
of the preparation and transmittal of the data for such
purpose, on research or public health activities, including
those conducted by or for the use of the Food and Drug
Administration; and
(B) may further restrict the exception described in
paragraph (2)(A) to require that the price charged for the
purposes described in such paragraph reflects the costs of the
preparation and transmittal of the data for such purpose, if
the Secretary finds that such further restriction will not
impede such research or public health activities.
(4) Effective date.--Paragraph (1) shall apply to exchanges
occurring on or after the date that is 6 months after the date of
the promulgation of final regulations implementing this subsection.
(e) Access to Certain Information in Electronic Format.--In
applying section 164.524 of title 45, Code of Federal Regulations, in
the case that a covered entity uses or maintains an electronic health
record with respect to protected health information of an individual--
(1) the individual shall have a right to obtain from such
covered entity a copy of such information in an electronic format
and, if the individual chooses, to direct the covered entity to
transmit such copy directly to an entity or person designated by
the individual, provided that any such choice is clear,
conspicuous, and specific; and
(2) notwithstanding paragraph (c)(4) of such section, any fee
that the covered entity may impose for providing such individual
with a copy of such information (or a summary or explanation of
such information) if such copy (or summary or explanation) is in an
electronic form shall not be greater than the entity's labor costs
in responding to the request for the copy (or summary or
explanation).
SEC. 13406. CONDITIONS ON CERTAIN CONTACTS AS PART OF HEALTH CARE
OPERATIONS.
(a) Marketing.--
(1) In general.--A communication by a covered entity or
business associate that is about a product or service and that
encourages recipients of the communication to purchase or use the
product or service shall not be considered a health care operation
for purposes of subpart E of part 164 of title 45, Code of Federal
Regulations, unless the communication is made as described in
subparagraph (i), (ii), or (iii) of paragraph (1) of the definition
of marketing in section 164.501 of such title.
(2) Payment for certain communications.--A communication by a
covered entity or business associate that is described in
subparagraph (i), (ii), or (iii) of paragraph (1) of the definition
of marketing in section 164.501 of title 45, Code of Federal
Regulations, shall not be considered a health care operation for
purposes of subpart E of part 164 of title 45, Code of Federal
Regulations if the covered entity receives or has received direct
or indirect payment in exchange for making such communication,
except where--
(A)(i) such communication describes only a drug or biologic
that is currently being prescribed for the recipient of the
communication; and
(ii) any payment received by such covered entity in
exchange for making a communication described in clause (i) is
reasonable in amount;
(B) each of the following conditions apply--
(i) the communication is made by the covered entity;
and
(ii) the covered entity making such communication
obtains from the recipient of the communication, in
accordance with section 164.508 of title 45, Code of
Federal Regulations, a valid authorization (as described in
paragraph (b) of such section) with respect to such
communication; or
(C) each of the following conditions apply--
(i) the communication is made by a business associate
on behalf of the covered entity; and
(ii) the communication is consistent with the written
contract (or other written arrangement described in section
164.502(e)(2) of such title) between such business
associate and covered entity.
(3) Reasonable in amount defined.--For purposes of paragraph
(2), the term ``reasonable in amount'' shall have the meaning given
such term by the Secretary by regulation.
(4) Direct or indirect payment.--For purposes of paragraph (2),
the term ``direct or indirect payment'' shall not include any
payment for treatment (as defined in section 164.501 of title 45,
Code of Federal Regulations) of an individual.
(b) Opportunity to Opt Out of Fundraising.--The Secretary shall by
rule provide that any written fundraising communication that is a
healthcare operation as defined under section 164.501 of title 45, Code
of Federal Regulations, shall, in a clear and conspicuous manner,
provide an opportunity for the recipient of the communications to elect
not to receive any further such communication. When an individual
elects not to receive any further such communication, such election
shall be treated as a revocation of authorization under section 164.508
of title 45, Code of Federal Regulations.
(c) Effective Date.--This section shall apply to written
communications occurring on or after the effective date specified under
section 13423.
SEC. 13407. TEMPORARY BREACH NOTIFICATION REQUIREMENT FOR VENDORS OF
PERSONAL HEALTH RECORDS AND OTHER NON-HIPAA COVERED
ENTITIES.
(a) In General.--In accordance with subsection (c), each vendor of
personal health records, following the discovery of a breach of
security of unsecured PHR identifiable health information that is in a
personal health record maintained or offered by such vendor, and each
entity described in clause (ii), (iii), or (iv) of section
13424(b)(1)(A), following the discovery of a breach of security of such
information that is obtained through a product or service provided by
such entity, shall--
(1) notify each individual who is a citizen or resident of the
United States whose unsecured PHR identifiable health information
was acquired by an unauthorized person as a result of such a breach
of security; and
(2) notify the Federal Trade Commission.
(b) Notification by Third Party Service Providers.--A third party
service provider that provides services to a vendor of personal health
records or to an entity described in clause (ii), (iii). or (iv) of
section 13424(b)(1)(A) in connection with the offering or maintenance
of a personal health record or a related product or service and that
accesses, maintains, retains, modifies, records, stores, destroys, or
otherwise holds, uses, or discloses unsecured PHR identifiable health
information in such a record as a result of such services shall,
following the discovery of a breach of security of such information,
notify such vendor or entity, respectively, of such breach. Such notice
shall include the identification of each individual whose unsecured PHR
identifiable health information has been, or is reasonably believed to
have been, accessed, acquired, or disclosed during such breach.
(c) Application of Requirements for Timeliness, Method, and Content
of Notifications.--Subsections (c), (d), (e), and (f) of section 13402
shall apply to a notification required under subsection (a) and a
vendor of personal health records, an entity described in subsection
(a) and a third party service provider described in subsection (b),
with respect to a breach of security under subsection (a) of unsecured
PHR identifiable health information in such records maintained or
offered by such vendor, in a manner specified by the Federal Trade
Commission.
(d) Notification of the Secretary.--Upon receipt of a notification
of a breach of security under subsection (a)(2), the Federal Trade
Commission shall notify the Secretary of such breach.
(e) Enforcement.--A violation of subsection (a) or (b) shall be
treated as an unfair and deceptive act or practice in violation of a
regulation under section 18(a)(1)(B) of the Federal Trade Commission
Act (15 U.S.C. 57a(a)(1)(B)) regarding unfair or deceptive acts or
practices.
(f) Definitions.--For purposes of this section:
(1) Breach of security.--The term ``breach of security'' means,
with respect to unsecured PHR identifiable health information of an
individual in a personal health record, acquisition of such
information without the authorization of the individual.
(2) PHR identifiable health information.--The term ``PHR
identifiable health information'' means individually identifiable
health information, as defined in section 1171(6) of the Social
Security Act (42 U.S.C. 1320d(6)), and includes, with respect to an
individual, information--
(A) that is provided by or on behalf of the individual; and
(B) that identifies the individual or with respect to which
there is a reasonable basis to believe that the information can
be used to identify the individual.
(3) Unsecured phr identifiable health information.--
(A) In general.--Subject to subparagraph (B), the term
``unsecured PHR identifiable health information'' means PHR
identifiable health information that is not protected through
the use of a technology or methodology specified by the
Secretary in the guidance issued under section 13402(h)(2).
(B) Exception in case timely guidance not issued.--In the
case that the Secretary does not issue guidance under section
13402(h)(2) by the date specified in such section, for purposes
of this section, the term ``unsecured PHR identifiable health
information'' shall mean PHR identifiable health information
that is not secured by a technology standard that renders
protected health information unusable, unreadable, or
indecipherable to unauthorized individuals and that is
developed or endorsed by a standards developing organization
that is accredited by the American National Standards
Institute.
(g) Regulations; Effective Date; Sunset.--
(1) Regulations; effective date.--To carry out this section,
the Federal Trade Commission shall promulgate interim final
regulations by not later than the date that is 180 days after the
date of the enactment of this section. The provisions of this
section shall apply to breaches of security that are discovered on
or after the date that is 30 days after the date of publication of
such interim final regulations.
(2) Sunset.--If Congress enacts new legislation establishing
requirements for notification in the case of a breach of security,
that apply to entities that are not covered entities or business
associates, the provisions of this section shall not apply to
breaches of security discovered on or after the effective date of
regulations implementing such legislation.
SEC. 13408. BUSINESS ASSOCIATE CONTRACTS REQUIRED FOR CERTAIN ENTITIES.
Each organization, with respect to a covered entity, that provides
data transmission of protected health information to such entity (or
its business associate) and that requires access on a routine basis to
such protected health information, such as a Health Information
Exchange Organization, Regional Health Information Organization, E-
prescribing Gateway, or each vendor that contracts with a covered
entity to allow that covered entity to offer a personal health record
to patients as part of its electronic health record, is required to
enter into a written contract (or other written arrangement) described
in section 164.502(e)(2) of title 45, Code of Federal Regulations and a
written contract (or other arrangement) described in section 164.308(b)
of such title, with such entity and shall be treated as a business
associate of the covered entity for purposes of the provisions of this
subtitle and subparts C and E of part 164 of title 45, Code of Federal
Regulations, as such provisions are in effect as of the date of
enactment of this title.
SEC. 13409. CLARIFICATION OF APPLICATION OF WRONGFUL DISCLOSURES
CRIMINAL PENALTIES.
Section 1177(a) of the Social Security Act (42 U.S.C. 1320d-6(a))
is amended by adding at the end the following new sentence: ``For
purposes of the previous sentence, a person (including an employee or
other individual) shall be considered to have obtained or disclosed
individually identifiable health information in violation of this part
if the information is maintained by a covered entity (as defined in the
HIPAA privacy regulation described in section 1180(b)(3)) and the
individual obtained or disclosed such information without
authorization.''.
SEC. 13410. IMPROVED ENFORCEMENT.
(a) In General.--
(1) Noncompliance due to willful neglect.--Section 1176 of the
Social Security Act (42 U.S.C. 1320d-5) is amended--
(A) in subsection (b)(1), by striking ``the act constitutes
an offense punishable under section 1177'' and inserting ``a
penalty has been imposed under section 1177 with respect to
such act''; and
(B) by adding at the end the following new subsection:
``(c) Noncompliance Due to Willful Neglect.--
``(1) In general.--A violation of a provision of this part due
to willful neglect is a violation for which the Secretary is
required to impose a penalty under subsection (a)(1).
``(2) Required investigation.--For purposes of paragraph (1),
the Secretary shall formally investigate any complaint of a
violation of a provision of this part if a preliminary
investigation of the facts of the complaint indicate such a
possible violation due to willful neglect.''.
(2) Enforcement under social security act.--Any violation by a
covered entity under thus subtitle is subject to enforcement and
penalties under section 1176 and 1177 of the Social Security Act.
(b) Effective Date; Regulations.--
(1) The amendments made by subsection (a) shall apply to
penalties imposed on or after the date that is 24 months after the
date of the enactment of this title.
(2) Not later than 18 months after the date of the enactment of
this title, the Secretary of Health and Human Services shall
promulgate regulations to implement such amendments.
(c) Distribution of Certain Civil Monetary Penalties Collected.--
(1) In general.--Subject to the regulation promulgated pursuant
to paragraph (3), any civil monetary penalty or monetary settlement
collected with respect to an offense punishable under this subtitle
or section 1176 of the Social Security Act (42 U.S.C. 1320d-5)
insofar as such section relates to privacy or security shall be
transferred to the Office for Civil Rights of the Department of
Health and Human Services to be used for purposes of enforcing the
provisions of this subtitle and subparts C and E of part 164 of
title 45, Code of Federal Regulations, as such provisions are in
effect as of the date of enactment of this Act.
(2) GAO report.--Not later than 18 months after the date of the
enactment of this title, the Comptroller General shall submit to
the Secretary a report including recommendations for a methodology
under which an individual who is harmed by an act that constitutes
an offense referred to in paragraph (1) may receive a percentage of
any civil monetary penalty or monetary settlement collected with
respect to such offense.
(3) Establishment of methodology to distribute percentage of
cmps collected to harmed individuals.--Not later than 3 years after
the date of the enactment of this title, the Secretary shall
establish by regulation and based on the recommendations submitted
under paragraph (2), a methodology under which an individual who is
harmed by an act that constitutes an offense referred to in
paragraph (1) may receive a percentage of any civil monetary
penalty or monetary settlement collected with respect to such
offense.
(4) Application of methodology.--The methodology under
paragraph (3) shall be applied with respect to civil monetary
penalties or monetary settlements imposed on or after the effective
date of the regulation.
(d) Tiered Increase in Amount of Civil Monetary Penalties.--
(1) In general.--Section 1176(a)(1) of the Social Security Act
(42 U.S.C. 1320d-5(a)(1)) is amended by striking ``who violates a
provision of this part a penalty of not more than'' and all that
follows and inserting the following: ``who violates a provision of
this part--
``(A) in the case of a violation of such provision in which
it is established that the person did not know (and by
exercising reasonable diligence would not have known) that such
person violated such provision, a penalty for each such
violation of an amount that is at least the amount described in
paragraph (3)(A) but not to exceed the amount described in
paragraph (3)(D);
``(B) in the case of a violation of such provision in which
it is established that the violation was due to reasonable
cause and not to willful neglect, a penalty for each such
violation of an amount that is at least the amount described in
paragraph (3)(B) but not to exceed the amount described in
paragraph (3)(D); and
``(C) in the case of a violation of such provision in which
it is established that the violation was due to willful
neglect--
``(i) if the violation is corrected as described in
subsection (b)(3)(A), a penalty in an amount that is at
least the amount described in paragraph (3)(C) but not to
exceed the amount described in paragraph (3)(D); and
``(ii) if the violation is not corrected as described
in such subsection, a penalty in an amount that is at least
the amount described in paragraph (3)(D).
In determining the amount of a penalty under this section for a
violation, the Secretary shall base such determination on the
nature and extent of the violation and the nature and extent of
the harm resulting from such violation.''.
(2) Tiers of penalties described.--Section 1176(a) of such Act
(42 U.S.C. 1320d-5(a)) is further amended by adding at the end the
following new paragraph:
``(3) Tiers of penalties described.--For purposes of paragraph
(1), with respect to a violation by a person of a provision of this
part--
``(A) the amount described in this subparagraph is $100 for
each such violation, except that the total amount imposed on
the person for all such violations of an identical requirement
or prohibition during a calendar year may not exceed $25,000;
``(B) the amount described in this subparagraph is $1,000
for each such violation, except that the total amount imposed
on the person for all such violations of an identical
requirement or prohibition during a calendar year may not
exceed $100,000;
``(C) the amount described in this subparagraph is $10,000
for each such violation, except that the total amount imposed
on the person for all such violations of an identical
requirement or prohibition during a calendar year may not
exceed $250,000; and
``(D) the amount described in this subparagraph is $50,000
for each such violation, except that the total amount imposed
on the person for all such violations of an identical
requirement or prohibition during a calendar year may not
exceed $1,500,000.''.
(3) Conforming amendments.--Section 1176(b) of such Act (42
U.S.C. 1320d-5(b)) is amended--
(A) by striking paragraph (2) and redesignating paragraphs
(3) and (4) as paragraphs (2) and (3), respectively; and
(B) in paragraph (2), as so redesignated--
(i) in subparagraph (A), by striking ``in subparagraph
(B), a penalty may not be imposed under subsection (a) if''
and all that follows through ``the failure to comply is
corrected'' and inserting ``in subparagraph (B) or
subsection (a)(1)(C), a penalty may not be imposed under
subsection (a) if the failure to comply is corrected''; and
(ii) in subparagraph (B), by striking ``(A)(ii)'' and
inserting ``(A)'' each place it appears.
(4) Effective date.--The amendments made by this subsection
shall apply to violations occurring after the date of the enactment
of this title.
(e) Enforcement Through State Attorneys General.--
(1) In general.--Section 1176 of the Social Security Act (42
U.S.C. 1320d-5) is amended by adding at the end the following new
subsection:
``(d) Enforcement by State Attorneys General.--
``(1) Civil action.--Except as provided in subsection (b), in
any case in which the attorney general of a State has reason to
believe that an interest of one or more of the residents of that
State has been or is threatened or adversely affected by any person
who violates a provision of this part, the attorney general of the
State, as parens patriae, may bring a civil action on behalf of
such residents of the State in a district court of the United
States of appropriate jurisdiction--
``(A) to enjoin further such violation by the defendant; or
``(B) to obtain damages on behalf of such residents of the
State, in an amount equal to the amount determined under
paragraph (2).
``(2) Statutory damages.--
``(A) In general.--For purposes of paragraph (1)(B), the
amount determined under this paragraph is the amount calculated
by multiplying the number of violations by up to $100. For
purposes of the preceding sentence, in the case of a continuing
violation, the number of violations shall be determined
consistent with the HIPAA privacy regulations (as defined in
section 1180(b)(3)) for violations of subsection (a).
``(B) Limitation.--The total amount of damages imposed on
the person for all violations of an identical requirement or
prohibition during a calendar year may not exceed $25,000.
``(C) Reduction of damages.--In assessing damages under
subparagraph (A), the court may consider the factors the
Secretary may consider in determining the amount of a civil
money penalty under subsection (a) under the HIPAA privacy
regulations.
``(3) Attorney fees.--In the case of any successful action
under paragraph (1), the court, in its discretion, may award the
costs of the action and reasonable attorney fees to the State.
``(4) Notice to secretary.--The State shall serve prior written
notice of any action under paragraph (1) upon the Secretary and
provide the Secretary with a copy of its complaint, except in any
case in which such prior notice is not feasible, in which case the
State shall serve such notice immediately upon instituting such
action. The Secretary shall have the right--
``(A) to intervene in the action;
``(B) upon so intervening, to be heard on all matters
arising therein; and
``(C) to file petitions for appeal.
``(5) Construction.--For purposes of bringing any civil action
under paragraph (1), nothing in this section shall be construed to
prevent an attorney general of a State from exercising the powers
conferred on the attorney general by the laws of that State.
``(6) Venue; service of process.--
``(A) Venue.--Any action brought under paragraph (1) may be
brought in the district court of the United States that meets
applicable requirements relating to venue under section 1391 of
title 28, United States Code.
``(B) Service of process.--In an action brought under
paragraph (1), process may be served in any district in which
the defendant--
``(i) is an inhabitant; or
``(ii) maintains a physical place of business.
``(7) Limitation on state action while federal action is
pending.--If the Secretary has instituted an action against a
person under subsection (a) with respect to a specific violation of
this part, no State attorney general may bring an action under this
subsection against the person with respect to such violation during
the pendency of that action.
``(8) Application of cmp statute of limitation.--A civil action
may not be instituted with respect to a violation of this part
unless an action to impose a civil money penalty may be instituted
under subsection (a) with respect to such violation consistent with
the second sentence of section 1128A(c)(1).''.
(2) Conforming amendments.--Subsection (b) of such section, as
amended by subsection (d)(3), is amended--
(A) in paragraph (1), by striking ``A penalty may not be
imposed under subsection (a)'' and inserting ``No penalty may
be imposed under subsection (a) and no damages obtained under
subsection (d)'';
(B) in paragraph (2)(A)--
(i) after ``subsection (a)(1)(C),'', by striking ``a
penalty may not be imposed under subsection (a)'' and
inserting ``no penalty may be imposed under subsection (a)
and no damages obtained under subsection (d)''; and
(ii) in clause (ii), by inserting ``or damages'' after
``the penalty'';
(C) in paragraph (2)(B)(i), by striking ``The period'' and
inserting ``With respect to the imposition of a penalty by the
Secretary under subsection (a), the period''; and
(D) in paragraph (3), by inserting ``and any damages under
subsection (d)'' after ``any penalty under subsection (a)''.
(3) Effective date.--The amendments made by this subsection
shall apply to violations occurring after the date of the enactment
of this Act.
(f) Allowing Continued Use of Corrective Action.--Such section is
further amended by adding at the end the following new subsection:
``(e) Allowing Continued Use of Corrective Action.--Nothing in this
section shall be construed as preventing the Office for Civil Rights of
the Department of Health and Human Services from continuing, in its
discretion, to use corrective action without a penalty in cases where
the person did not know (and by exercising reasonable diligence would
not have known) of the violation involved.''.
SEC. 13411. AUDITS.
The Secretary shall provide for periodic audits to ensure that
covered entities and business associates that are subject to the
requirements of this subtitle and subparts C and E of part 164 of title
45, Code of Federal Regulations, as such provisions are in effect as of
the date of enactment of this Act, comply with such requirements.
PART 2--RELATIONSHIP TO OTHER LAWS; REGULATORY REFERENCES; EFFECTIVE
DATE; REPORTS
SEC. 13421. RELATIONSHIP TO OTHER LAWS.
(a) Application of Hipaa State Preemption.--Section 1178 of the
Social Security Act (42 U.S.C. 1320d-7) shall apply to a provision or
requirement under this subtitle in the same manner that such section
applies to a provision or requirement under part C of title XI of such
Act or a standard or implementation specification adopted or
established under sections 1172 through 1174 of such Act.
(b) Health Insurance Portability and Accountability Act.--The
standards governing the privacy and security of individually
identifiable health information promulgated by the Secretary under
sections 262(a) and 264 of the Health Insurance Portability and
Accountability Act of 1996 shall remain in effect to the extent that
they are consistent with this subtitle. The Secretary shall by rule
amend such Federal regulations as required to make such regulations
consistent with this subtitle.
(c) Construction.--Nothing in this subtitle shall constitute a
waiver of any privilege otherwise applicable to an individual with
respect to the protected health information of such individual.
SEC. 13422. REGULATORY REFERENCES.
Each reference in this subtitle to a provision of the Code of
Federal Regulations refers to such provision as in effect on the date
of the enactment of this title (or to the most recent update of such
provision).
SEC. 13423. EFFECTIVE DATE.
Except as otherwise specifically provided, the provisions of part I
shall take effect on the date that is 12 months after the date of the
enactment of this title.
SEC. 13424. STUDIES, REPORTS, GUIDANCE.
(a) Report on Compliance.--
(1) In general.--For the first year beginning after the date of
the enactment of this Act and annually thereafter, the Secretary
shall prepare and submit to the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on Ways and
Means and the Committee on Energy and Commerce of the House of
Representatives a report concerning complaints of alleged
violations of law, including the provisions of this subtitle as
well as the provisions of subparts C and E of part 164 of title 45,
Code of Federal Regulations, (as such provisions are in effect as
of the date of enactment of this Act) relating to privacy and
security of health information that are received by the Secretary
during the year for which the report is being prepared. Each such
report shall include, with respect to such complaints received
during the year--
(A) the number of such complaints;
(B) the number of such complaints resolved informally, a
summary of the types of such complaints so resolved, and the
number of covered entities that received technical assistance
from the Secretary during such year in order to achieve
compliance with such provisions and the types of such technical
assistance provided;
(C) the number of such complaints that have resulted in the
imposition of civil monetary penalties or have been resolved
through monetary settlements, including the nature of the
complaints involved and the amount paid in each penalty or
settlement;
(D) the number of compliance reviews conducted and the
outcome of each such review;
(E) the number of subpoenas or inquiries issued;
(F) the Secretary's plan for improving compliance with and
enforcement of such provisions for the following year; and
(G) the number of audits performed and a summary of audit
findings pursuant to section 13411.
(2) Availability to public.--Each report under paragraph (1)
shall be made available to the public on the Internet website of
the Department of Health and Human Services.
(b) Study and Report on Application of Privacy and Security
Requirements to Non-Hipaa Covered Entities.--
(1) Study.--Not later than one year after the date of the
enactment of this title, the Secretary, in consultation with the
Federal Trade Commission, shall conduct a study, and submit a
report under paragraph (2), on privacy and security requirements
for entities that are not covered entities or business associates
as of the date of the enactment of this title, including--
(A) requirements relating to security, privacy, and
notification in the case of a breach of security or privacy
(including the applicability of an exemption to notification in
the case of individually identifiable health information that
has been rendered unusable, unreadable, or indecipherable
through technologies or methodologies recognized by appropriate
professional organization or standard setting bodies to provide
effective security for the information) that should be applied
to--
(i) vendors of personal health records;
(ii) entities that offer products or services through
the website of a vendor of personal health records;
(iii) entities that are not covered entities and that
offer products or services through the websites of covered
entities that offer individuals personal health records;
(iv) entities that are not covered entities and that
access information in a personal health record or send
information to a personal health record; and
(v) third party service providers used by a vendor or
entity described in clause (i), (ii), (iii), or (iv) to
assist in providing personal health record products or
services;
(B) a determination of which Federal government agency is
best equipped to enforce such requirements recommended to be
applied to such vendors, entities, and service providers under
subparagraph (A); and
(C) a timeframe for implementing regulations based on such
findings.
(2) Report.--The Secretary shall submit to the Committee on
Finance, the Committee on Health, Education, Labor, and Pensions,
and the Committee on Commerce of the Senate and the Committee on
Ways and Means and the Committee on Energy and Commerce of the
House of Representatives a report on the findings of the study
under paragraph (1) and shall include in such report
recommendations on the privacy and security requirements described
in such paragraph.
(c) Guidance on Implementation Specification to De-Identify
Protected Health Information.--Not later than 12 months after the date
of the enactment of this title, the Secretary shall, in consultation
with stakeholders, issue guidance on how best to implement the
requirements for the de-identification of protected health information
under section 164.514(b) of title 45, Code of Federal Regulations.
(d) GAO Report on Treatment Disclosures.--Not later than one year
after the date of the enactment of this title, the Comptroller General
of the United States shall submit to the Committee on Health,
Education, Labor, and Pensions of the Senate and the Committee on Ways
and Means and the Committee on Energy and Commerce of the House of
Representatives a report on the best practices related to the
disclosure among health care providers of protected health information
of an individual for purposes of treatment of such individual. Such
report shall include an examination of the best practices implemented
by States and by other entities, such as health information exchanges
and regional health information organizations, an examination of the
extent to which such best practices are successful with respect to the
quality of the resulting health care provided to the individual and
with respect to the ability of the health care provider to manage such
best practices, and an examination of the use of electronic informed
consent for disclosing protected health information for treatment,
payment, and health care operations.
(e) Report Required.--Not later than 5 years after the date of
enactment of this section, the Government Accountability Office shall
submit to Congress and the Secretary of Health and Human Services a
report on the impact of any of the provisions of this Act on health
insurance premiums, overall health care costs, adoption of electronic
health records by providers, and reduction in medical errors and other
quality improvements.
(f) Study.--The Secretary shall study the definition of
``psychotherapy notes'' in section 164.501 of title 45, Code of Federal
Regulations, with regard to including test data that is related to
direct responses, scores, items, forms, protocols, manuals, or other
materials that are part of a mental health evaluation, as determined by
the mental health professional providing treatment or evaluation in
such definitions and may, based on such study, issue regulations to
revise such definition.
TITLE XIV--STATE FISCAL STABILIZATION FUND
DEPARTMENT OF EDUCATION
State Fiscal Stabilization Fund
For necessary expenses for a State Fiscal Stabilization Fund,
$53,600,000,000, which shall be administered by the Department of
Education.
GENERAL PROVISIONS--THIS TITLE
SEC. 14001. ALLOCATIONS.
(a) Outlying Areas.--From the amount appropriated to carry out this
title, the Secretary of Education shall first allocate up to one-half
of 1 percent to the outlying areas on the basis of their respective
needs, as determined by the Secretary, in consultation with the
Secretary of the Interior, for activities consistent with this title
under such terms and conditions as the Secretary may determine.
(b) Administration and Oversight.--The Secretary may, in addition,
reserve up to $14,000,000 for administration and oversight of this
title, including for program evaluation.
(c) Reservation for Additional Programs.--After reserving funds
under subsections (a) and (b), the Secretary shall reserve
$5,000,000,000 for grants under sections 14006 and 14007.
(d) State Allocations.--After carrying out subsections (a), (b),
and (c), the Secretary shall allocate the remaining funds made
available to carry out this title to the States as follows:
(1) 61 percent on the basis of their relative population of
individuals aged 5 through 24.
(2) 39 percent on the basis of their relative total population.
(e) State Grants.--From funds allocated under subsection (d), the
Secretary shall make grants to the Governor of each State.
(f) Reallocation.--The Governor shall return to the Secretary any
funds received under subsection (e) that the Governor does not award as
subgrants or otherwise commit within two years of receiving such funds,
and the Secretary shall reallocate such funds to the remaining States
in accordance with subsection (d).
SEC. 14002. STATE USES OF FUNDS.
(a) Education Fund.--
(1) In general.--For each fiscal year, the Governor shall use
81.8 percent of the State's allocation under section 14001(d) for
the support of elementary, secondary, and postsecondary education
and, as applicable, early childhood education programs and
services.
(2) Restoring state support for education.--
(A) In general.--The Governor shall first use the funds
described in paragraph (1)--
(i) to provide the amount of funds, through the State's
primary elementary and secondary funding formulae, that is
needed--
(I) to restore, in each of fiscal years 2009, 2010,
and 2011, the level of State support provided through
such formulae to the greater of the fiscal year 2008 or
fiscal year 2009 level; and
(II) where applicable, to allow existing State
formulae increases to support elementary and secondary
education for fiscal years 2010 and 2011 to be
implemented and allow funding for phasing in State
equity and adequacy adjustments, if such increases were
enacted pursuant to State law prior to October 1, 2008.
(ii) to provide, in each of fiscal years 2009, 2010,
and 2011, the amount of funds to public institutions of
higher education in the State that is needed to restore
State support for such institutions (excluding tuition and
fees paid by students) to the greater of the fiscal year
2008 or fiscal year 2009 level.
(B) Shortfall.--If the Governor determines that the amount
of funds available under paragraph (1) is insufficient to
support, in each of fiscal years 2009, 2010, and 2011, public
elementary, secondary, and higher education at the levels
described in clauses (i) and (ii) of subparagraph (A), the
Governor shall allocate those funds between those clauses in
proportion to the relative shortfall in State support for the
education sectors described in those clauses.
(C) Fiscal year.--For purposes of this paragraph, the term
``fiscal year'' shall have the meaning given such term under
State law.
(3) Subgrants to improve basic programs operated by local
educational agencies.--After carrying out paragraph (2), the
Governor shall use any funds remaining under paragraph (1) to
provide local educational agencies in the State with subgrants
based on their relative shares of funding under part A of title I
of the Elementary and Secondary Education Act of 1965 (20 U.S.C.
6311 et seq.) for the most recent year for which data are
available.
(b) Other Government Services.--
(1) In general.--The Governor shall use 18.2 percent of the
State's allocation under section 14001 for public safety and other
government services, which may include assistance for elementary
and secondary education and public institutions of higher
education, and for modernization, renovation, or repair of public
school facilities and institutions of higher education facilities,
including modernization, renovation, and repairs that are
consistent with a recognized green building rating system.
(2) Availability to all institutions of higher education.--A
Governor shall not consider the type or mission of an institution
of higher education, and shall consider any institution for funding
for modernization, renovation, and repairs within the State that--
(A) qualifies as an institution of higher education, as
defined in subsection 14013(3); and
(B) continues to be eligible to participate in the programs
under title IV of the Higher Education Act of 1965.
(c) Rule of Construction.--Nothing in this section shall allow a
local educational agency to engage in school modernization, renovation,
or repair that is inconsistent with State law.
SEC. 14003. USES OF FUNDS BY LOCAL EDUCATIONAL AGENCIES.
(a) In General.--A local educational agency that receives funds
under this title may use the funds for any activity authorized by the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.)
(``ESEA''), the Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.) (``IDEA''), the Adult and Family Literacy Act (20 U.S.C.
1400 et seq.), or the Carl D. Perkins Career and Technical Education
Act of 2006 (20 U.S.C. 2301 et seq.) (``the Perkins Act'') or for
modernization, renovation, or repair of public school facilities,
including modernization, renovation, and repairs that are consistent
with a recognized green building rating system.
(b) Prohibition.--A local educational agency may not use funds
received under this title for--
(1) payment of maintenance costs;
(2) stadiums or other facilities primarily used for athletic
contests or exhibitions or other events for which admission is
charged to the general public;
(3) purchase or upgrade of vehicles; or
(4) improvement of stand-alone facilities whose purpose is not
the education of children, including central office administration
or operations or logistical support facilities.
(c) Rule of Construction.--Nothing in this section shall allow a
local educational agency to engage in school modernization, renovation,
or repair that is inconsistent with State law.
SEC. 14004. USES OF FUNDS BY INSTITUTIONS OF HIGHER EDUCATION.
(a) In General.--A public institution of higher education that
receives funds under this title shall use the funds for education and
general expenditures, and in such a way as to mitigate the need to
raise tuition and fees for in-State students, or for modernization,
renovation, or repair of institution of higher education facilities
that are primarily used for instruction, research, or student housing,
including modernization, renovation, and repairs that are consistent
with a recognized green building rating system.
(b) Prohibition.--An institution of higher education may not use
funds received under this title to increase its endowment.
(c) Additional Prohibition.--No funds awarded under this title may
be used for--
(1) the maintenance of systems, equipment, or facilities;
(2) modernization, renovation, or repair of stadiums or other
facilities primarily used for athletic contests or exhibitions or
other events for which admission is charged to the general public;
or
(3) modernization, renovation, or repair of facilities--
(A) used for sectarian instruction or religious worship; or
(B) in which a substantial portion of the functions of the
facilities are subsumed in a religious mission.
SEC. 14005. STATE APPLICATIONS.
(a) In General.--The Governor of a State desiring to receive an
allocation under section 14001 shall submit an application at such
time, in such manner, and containing such information as the Secretary
may reasonably require.
(b) Application.--In such application, the Governor shall--
(1) include the assurances described in subsection (d);
(2) provide baseline data that demonstrates the State's current
status in each of the areas described in such assurances; and
(3) describe how the State intends to use its allocation,
including whether the State will use such allocation to meet
maintenance of effort requirements under the ESEA and IDEA and, in
such cases, what amount will be used to meet such requirements.
(c) Incentive Grant Application.--The Governor of a State seeking a
grant under section 14006 shall--
(1) submit an application for consideration;
(2) describe the status of the State's progress in each of the
areas described in subsection (d), and the strategies the State is
employing to help ensure that students in the subgroups described
in section 1111(b)(2)(C)(v)(II) of the ESEA (20 U.S.C.
6311(b)(2)(C)(v)(II)) who have not met the State's proficiency
targets continue making progress toward meeting the State's student
academic achievement standards;
(3) describe the achievement and graduation rates (as described
in section 1111(b)(2)(C)(vi) of the ESEA (20 U.S.C.
6311(b)(2)(C)(vi)) and as clarified in section 200.19(b)(1) of
title 34, Code of Federal Regulations) of public elementary and
secondary school students in the State, and the strategies the
State is employing to help ensure that all subgroups of students
identified in section 1111(b)(2) of the ESEA (20 U.S.C. 6311(b)(2))
in the State continue making progress toward meeting the State's
student academic achievement standards;
(4) describe how the State would use its grant funding to
improve student academic achievement in the State, including how it
will allocate the funds to give priority to high-need local
educational agencies; and
(5) include a plan for evaluating the State's progress in
closing achievement gaps.
(d) Assurances.--An application under subsection (b) shall include
the following assurances:
(1) Maintenance of effort.--
(A) Elementary and secondary education.--The State will, in
each of fiscal years 2009, 2010, and 2011, maintain State
support for elementary and secondary education at least at the
level of such support in fiscal year 2006.
(B) Higher education.--The State will, in each of fiscal
years 2009, 2010, and 2011, maintain State support for public
institutions of higher education (not including support for
capital projects or for research and development or tuition and
fees paid by students) at least at the level of such support in
fiscal year 2006.
(2) Achieving equity in teacher distribution.--The State will
take actions to improve teacher effectiveness and comply with
section 1111(b)(8)(C) of the ESEA (20 U.S.C. 6311(b)(8)(C)) in
order to address inequities in the distribution of highly qualified
teachers between high- and low-poverty schools, and to ensure that
low-income and minority children are not taught at higher rates
than other children by inexperienced, unqualified, or out-of-field
teachers.
(3) Improving collection and use of data.--The State will
establish a longitudinal data system that includes the elements
described in section 6401(e)(2)(D) of the America COMPETES Act (20
U.S.C. 9871).
(4) Standards and assessments.--The State--
(A) will enhance the quality of the academic assessments it
administers pursuant to section 1111(b)(3) of the ESEA (20
U.S.C. 6311(b)(3)) through activities such as those described
in section 6112(a) of such Act (20 U.S.C. 7301a(a));
(B) will comply with the requirements of paragraphs
(3)(C)(ix) and (6) of section 1111(b) of the ESEA (20 U.S.C.
6311(b)) and section 612(a)(16) of the IDEA (20 U.S.C.
1412(a)(16)) related to the inclusion of children with
disabilities and limited English proficient students in State
assessments, the development of valid and reliable assessments
for those students, and the provision of accommodations that
enable their participation in State assessments; and
(C) will take steps to improve State academic content
standards and student academic achievement standards consistent
with section 6401(e)(1)(9)(A)(ii) of the America COMPETES Act.
(5) Supporting struggling schools.--The State will ensure
compliance with the requirements of section 1116(a)(7)(C)(iv) and
section 1116(a)(8)(B) of the ESEA with respect to schools
identified under such sections.
SEC. 14006. STATE INCENTIVE GRANTS.
(a) In General.--
(1) Reservation.--From the total amount reserved under section
14001(c) that is not used for section 14007, the Secretary may
reserve up to 1 percent for technical assistance to States to
assist them in meeting the objectives of paragraphs (2), (3), (4),
and (5) of section 14005(d).
(2) Remainder.--Of the remaining funds, the Secretary shall, in
fiscal year 2010, make grants to States that have made significant
progress in meeting the objectives of paragraphs (2), (3), (4), and
(5) of section 14005(d).
(b) Basis for Grants.--The Secretary shall determine which States
receive grants under this section, and the amount of those grants, on
the basis of information provided in State applications under section
14005 and such other criteria as the Secretary determines appropriate,
which may include a State's need for assistance to help meet the
objective of paragraphs (2), (3), (4), and (5) of section 14005(d).
(c) Subgrants to Local Educational Agencies.--Each State receiving
a grant under this section shall use at least 50 percent of the grant
to provide local educational agencies in the State with subgrants based
on their relative shares of funding under part A of title I of the ESEA
(20 U.S.C. 6311 et seq.) for the most recent year.
SEC. 14007. INNOVATION FUND.
(a) In General.--
(1) Eligible entities.--For the purposes of this section, the
term ``eligible entity'' means--
(A) a local educational agency; or
(B) a partnership between a nonprofit organization and--
(i) one or more local educational agencies; or
(ii) a consortium of schools.
(2) Program established.--From the total amount reserved under
section 14001(c), the Secretary may reserve up to $650,000,000 to
establish an Innovation Fund, which shall consist of academic
achievement awards that recognize eligible entities that meet the
requirements described in subsection (b).
(3) Basis for awards.--The Secretary shall make awards to
eligible entities that have made significant gains in closing the
achievement gap as described in subsection (b)(1)--
(A) to allow such eligible entities to expand their work
and serve as models for best practices;
(B) to allow such eligible entities to work in partnership
with the private sector and the philanthropic community; and
(C) to identify and document best practices that can be
shared, and taken to scale based on demonstrated success.
(b) Eligibility.--To be eligible for such an award, an eligible
entity shall--
(1) have significantly closed the achievement gaps between
groups of students described in section 1111(b)(2) of the ESEA (20
U.S.C. 6311(b)(2));
(2) have exceeded the State's annual measurable objectives
consistent with such section 1111(b)(2) for 2 or more consecutive
years or have demonstrated success in significantly increasing
student academic achievement for all groups of students described
in such section through another measure, such as measures described
in section 1111(c)(2) of the ESEA;
(3) have made significant improvement in other areas, such as
graduation rates or increased recruitment and placement of high-
quality teachers and school leaders, as demonstrated with
meaningful data; and
(4) demonstrate that they have established partnerships with
the private sector, which may include philanthropic organizations,
and that the private sector will provide matching funds in order to
help bring results to scale.
(c) Special Rule.--In the case of an eligible entity that includes
a nonprofit organization, the eligible entity shall be considered to
have met the eligibility requirements of paragraphs (1), (2), (3) of
subsection (b) if such nonprofit organization has a record of meeting
such requirements.
SEC. 14008. STATE REPORTS.
For each year of the program under this title, a State receiving
funds under this title shall submit a report to the Secretary, at such
time and in such manner as the Secretary may require, that describes--
(1) the uses of funds provided under this title within the
State;
(2) how the State distributed the funds it received under this
title;
(3) the number of jobs that the Governor estimates were saved
or created with funds the State received under this title;
(4) tax increases that the Governor estimates were averted
because of the availability of funds from this title;
(5) the State's progress in reducing inequities in the
distribution of highly qualified teachers, in implementing a State
longitudinal data system, and in developing and implementing valid
and reliable assessments for limited English proficient students
and children with disabilities;
(6) the tuition and fee increases for in-State students imposed
by public institutions of higher education in the State during the
period of availability of funds under this title, and a description
of any actions taken by the State to limit those increases;
(7) the extent to which public institutions of higher education
maintained, increased, or decreased enrollment of in-State
students, including students eligible for Pell Grants or other
need-based financial assistance; and
(8) a description of each modernization, renovation and repair
project funded, which shall include the amounts awarded and project
costs.
SEC. 14009. EVALUATION.
The Comptroller General of the United States shall conduct
evaluations of the programs under sections 14006 and 14007 which shall
include, but not be limited to, the criteria used for the awards made,
the States selected for awards, award amounts, how each State used the
award received, and the impact of this funding on the progress made
toward closing achievement gaps.
SEC. 14010. SECRETARY'S REPORT TO CONGRESS.
The Secretary shall submit a report to the Committee on Education
and Labor of the House of Representatives, the Committee on Health,
Education, Labor, and Pensions of the Senate, and the Committees on
Appropriations of the House of Representatives and of the Senate, not
less than 6 months following the submission of State reports, that
evaluates the information provided in the State reports under section
14008 and the information required by section 14005(b)(3) including
State-by-State information.
SEC. 14011. PROHIBITION ON PROVISION OF CERTAIN ASSISTANCE.
No recipient of funds under this title shall use such funds to
provide financial assistance to students to attend private elementary
or secondary schools.
SEC. 14012. FISCAL RELIEF.
(a) In General.--For the purpose of relieving fiscal burdens on
States and local educational agencies that have experienced a
precipitous decline in financial resources, the Secretary of Education
may waive or modify any requirement of this title relating to
maintaining fiscal effort.
(b) Duration.--A waiver or modification under this section shall be
for any of fiscal year 2009, fiscal year 2010, or fiscal year 2011, as
determined by the Secretary.
(c) Criteria.--The Secretary shall not grant a waiver or
modification under this section unless the Secretary determines that
the State or local educational agency receiving such waiver or
modification will not provide for elementary and secondary education,
for the fiscal year under consideration, a smaller percentage of the
total revenues available to the State or local educational agency than
the amount provided for such purpose in the preceding fiscal year.
(d) Maintenance of Effort.--Upon prior approval from the Secretary,
a State or local educational agency that receives funds under this
title may treat any portion of such funds that is used for elementary,
secondary, or postsecondary education as non-Federal funds for the
purpose of any requirement to maintain fiscal effort under any other
program, including part C of the Individuals with Disabilities
Education Act (20 U.S.C. 1431 et seq.), administered by the Secretary.
(e) Subsequent Level of Effort.--Notwithstanding (d), the level of
effort required by a State or local educational agency for the
following fiscal year shall not be reduced.
SEC. 14013. DEFINITIONS.
Except as otherwise provided in this title, as used in this title--
(1) the terms ``elementary education'' and ``secondary
education'' have the meaning given such terms under State law;
(2) the term ``high-need local educational agency'' means a
local educational agency--
(A) that serves not fewer than 10,000 children from
families with incomes below the poverty line; or
(B) for which not less than 20 percent of the children
served by the agency are from families with incomes below the
poverty line;
(3) the term ``institution of higher education'' has the
meaning given such term in section 101 of the Higher Education Act
of 1965 (20 U.S.C. 1001);
(4) the term ``Secretary'' means the Secretary of Education;
(5) the term ``State'' means each of the 50 States, the
District of Columbia, and the Commonwealth of Puerto Rico; and
(6) any other term used that is defined in section 9101 of the
ESEA (20 U.S.C. 7801) shall have the meaning given the term in such
section.
TITLE XV--ACCOUNTABILITY AND TRANSPARENCY
SEC. 1501. DEFINITIONS.
In this title:
(1) Agency.--The term ``agency'' has the meaning given under
section 551 of title 5, United States Code.
(2) Board.--The term ``Board'' means the Recovery
Accountability and Transparency Board established in section 1521.
(3) Chairperson.--The term ``Chairperson'' means the
Chairperson of the Board.
(4) Covered funds.--The term ``covered funds'' means any funds
that are expended or obligated from appropriations made under this
Act.
(5) Panel.--The term ``Panel'' means the Recovery Independent
Advisory Panel established in section 1541.
Subtitle A--Transparency and Oversight Requirements
SEC. 1511. CERTIFICATIONS.
With respect to covered funds made available to State or local
governments for infrastructure investments, the Governor, mayor, or
other chief executive, as appropriate, shall certify that the
infrastructure investment has received the full review and vetting
required by law and that the chief executive accepts responsibility
that the infrastructure investment is an appropriate use of taxpayer
dollars. Such certification shall include a description of the
investment, the estimated total cost, and the amount of covered funds
to be used, and shall be posted on a website and linked to the website
established by section 1526. A State or local agency may not receive
infrastructure investment funding from funds made available in this Act
unless this certification is made and posted.
SEC. 1512. REPORTS ON USE OF FUNDS.
(a) Short Title.--This section may be cited as the ``Jobs
Accountability Act''.
(b) Definitions.--In this section:
(1) Recipient.--The term ``recipient''--
(A) means any entity that receives recovery funds directly
from the Federal Government (including recovery funds received
through grant, loan, or contract) other than an individual; and
(B) includes a State that receives recovery funds.
(2) Recovery funds.--The term ``recovery funds'' means any
funds that are made available from appropriations made under this
Act.
(c) Recipient Reports.--Not later than 10 days after the end of
each calendar quarter, each recipient that received recovery funds from
a Federal agency shall submit a report to that agency that contains--
(1) the total amount of recovery funds received from that
agency;
(2) the amount of recovery funds received that were expended or
obligated to projects or activities; and
(3) a detailed list of all projects or activities for which
recovery funds were expended or obligated, including--
(A) the name of the project or activity;
(B) a description of the project or activity;
(C) an evaluation of the completion status of the project
or activity;
(D) an estimate of the number of jobs created and the
number of jobs retained by the project or activity; and
(E) for infrastructure investments made by State and local
governments, the purpose, total cost, and rationale of the
agency for funding the infrastructure investment with funds
made available under this Act, and name of the person to
contact at the agency if there are concerns with the
infrastructure investment.
(4) Detailed information on any subcontracts or subgrants
awarded by the recipient to include the data elements required to
comply with the Federal Funding Accountability and Transparency Act
of 2006 (Public Law 109-282), allowing aggregate reporting on
awards below $25,000 or to individuals, as prescribed by the
Director of the Office of Management and Budget.
(d) Agency Reports.--Not later than 30 days after the end of each
calendar quarter, each agency that made recovery funds available to any
recipient shall make the information in reports submitted under
subsection (c) publicly available by posting the information on a
website.
(e) Other Reports.--The Congressional Budget Office and the
Government Accountability Office shall comment on the information
described in subsection (c)(3)(D) for any reports submitted under
subsection (c). Such comments shall be due within 45 days after such
reports are submitted.
(f) Compliance.--Within 180 days of enactment, as a condition of
receipt of funds under this Act, Federal agencies shall require any
recipient of such funds to provide the information required under
subsection (c).
(g) Guidance.--Federal agencies, in coordination with the Director
of the Office of Management and Budget, shall provide for user-friendly
means for recipients of covered funds to meet the requirements of this
section.
(h) Registration.--Funding recipients required to report
information per subsection (c)(4) must register with the Central
Contractor Registration database or complete other registration
requirements as determined by the Director of the Office of Management
and Budget.
SEC. 1513. REPORTS OF THE COUNCIL OF ECONOMIC ADVISERS.
(a) In General.--In consultation with the Director of the Office of
Management and Budget and the Secretary of the Treasury, the
Chairperson of the Council of Economic Advisers shall submit quarterly
reports to the Committees on Appropriations of the Senate and House of
Representatives that detail the impact of programs funded through
covered funds on employment, estimated economic growth, and other key
economic indicators.
(b) Submission of Reports.--
(1) First report.--The first report submitted under subsection
(a) shall be submitted not later than 45 days after the end of the
first full quarter following the date of enactment of this Act.
(2) Last report.--The last report required to be submitted
under subsection (a) shall apply to the quarter in which the Board
terminates under section 1530.
SEC. 1514. INSPECTOR GENERAL REVIEWS.
(a) Reviews.--Any inspector general of a Federal department or
executive agency shall review, as appropriate, any concerns raised by
the public about specific investments using funds made available in
this Act. Any findings of such reviews not related to an ongoing
criminal proceeding shall be relayed immediately to the head of the
department or agency concerned. In addition, the findings of such
reviews, along with any audits conducted by any inspector general of
funds made available in this Act, shall be posted on the inspector
general's website and linked to the website established by section
1526, except that portions of reports may be redacted to the extent the
portions would disclose information that is protected from public
disclosure under sections 552 and 552a of title 5, United States Code.
SEC. 1515. ACCESS OF OFFICES OF INSPECTOR GENERAL TO CERTAIN RECORDS
AND EMPLOYEES.
(a) Access.--With respect to each contract or grant awarded using
covered funds, any representative of an appropriate inspector general
appointed under section 3 or 8G of the Inspector General Act of 1978 (5
U.S.C. App.), is authorized--
(1) to examine any records of the contractor or grantee, any of
its subcontractors or subgrantees, or any State or local agency
administering such contract, that pertain to, and involve
transactions relating to, the contract, subcontract, grant, or
subgrant; and
(2) to interview any officer or employee of the contractor,
grantee, subgrantee, or agency regarding such transactions.
(b) Relationship to Existing Authority.--Nothing in this section
shall be interpreted to limit or restrict in any way any existing
authority of an inspector general.
Subtitle B--Recovery Accountability and Transparency Board
SEC. 1521. ESTABLISHMENT OF THE RECOVERY ACCOUNTABILITY AND
TRANSPARENCY BOARD.
There is established the Recovery Accountability and Transparency
Board to coordinate and conduct oversight of covered funds to prevent
fraud, waste, and abuse.
SEC. 1522. COMPOSITION OF BOARD.
(a) Chairperson.--
(1) Designation or appointment.--The President shall--
(A) designate the Deputy Director for Management of the
Office of Management and Budget to serve as Chairperson of the
Board;
(B) designate another Federal officer who was appointed by
the President to a position that required the advice and
consent of the Senate, to serve as Chairperson of the Board; or
(C) appoint an individual as the Chairperson of the Board,
by and with the advice and consent of the Senate.
(2) Compensation.--
(A) Designation of federal officer.--If the President
designates a Federal officer under paragraph (1)(A) or (B) to
serve as Chairperson, that Federal officer may not receive
additional compensation for services performed as Chairperson.
(B) Appointment of non-federal officer.--If the President
appoints an individual as Chairperson under paragraph (1)(C),
that individual shall be compensated at the rate of basic pay
prescribed for level IV of the Executive Schedule under section
5315 of title 5, United States Code.
(b) Members.--The members of the Board shall include--
(1) the Inspectors General of the Departments of Agriculture,
Commerce, Education, Energy, Health and Human Services, Homeland
Security, Justice, Transportation, Treasury, and the Treasury
Inspector General for Tax Administration; and
(2) any other Inspector General as designated by the President
from any agency that expends or obligates covered funds.
SEC. 1523. FUNCTIONS OF THE BOARD.
(a) Functions.--
(1) In general.--The Board shall coordinate and conduct
oversight of covered funds in order to prevent fraud, waste, and
abuse.
(2) Specific functions.--The functions of the Board shall
include--
(A) reviewing whether the reporting of contracts and grants
using covered funds meets applicable standards and specifies
the purpose of the contract or grant and measures of
performance;
(B) reviewing whether competition requirements applicable
to contracts and grants using covered funds have been
satisfied;
(C) auditing or reviewing covered funds to determine
whether wasteful spending, poor contract or grant management,
or other abuses are occurring and referring matters it
considers appropriate for investigation to the inspector
general for the agency that disbursed the covered funds;
(D) reviewing whether there are sufficient qualified
acquisition and grant personnel overseeing covered funds;
(E) reviewing whether personnel whose duties involve
acquisitions or grants made with covered funds receive adequate
training; and
(F) reviewing whether there are appropriate mechanisms for
interagency collaboration relating to covered funds, including
coordinating and collaborating to the extent practicable with
the Inspectors General Council on Integrity and Efficiency
established by the Inspector General Reform Act of 2008 (Public
Law 110-409).
(b) Reports.--
(1) Flash and other reports.--The Board shall submit to the
President and Congress, including the Committees on Appropriations
of the Senate and House of Representatives, reports, to be known as
``flash reports'', on potential management and funding problems
that require immediate attention. The Board also shall submit to
Congress such other reports as the Board considers appropriate on
the use and benefits of funds made available in this Act.
(2) Quarterly reports.--The Board shall submit quarterly
reports to the President and Congress, including the Committees on
Appropriations of the Senate and House of Representatives,
summarizing the findings of the Board and the findings of
inspectors general of agencies. The Board may submit additional
reports as appropriate.
(3) Annual reports.--The Board shall submit annual reports to
the President and Congress, including the Committees on
Appropriations of the Senate and House of Representatives,
consolidating applicable quarterly reports on the use of covered
funds.
(4) Public availability.--
(A) In general.--All reports submitted under this
subsection shall be made publicly available and posted on the
website established by section 1526.
(B) Redactions.--Any portion of a report submitted under
this subsection may be redacted when made publicly available,
if that portion would disclose information that is not subject
to disclosure under sections 552 and 552a of title 5, United
States Code.
(c) Recommendations.--
(1) In general.--The Board shall make recommendations to
agencies on measures to prevent fraud, waste, and abuse relating to
covered funds.
(2) Responsive reports.--Not later than 30 days after receipt
of a recommendation under paragraph (1), an agency shall submit a
report to the President, the congressional committees of
jurisdiction, including the Committees on Appropriations of the
Senate and House of Representatives, and the Board on--
(A) whether the agency agrees or disagrees with the
recommendations; and
(B) any actions the agency will take to implement the
recommendations.
SEC. 1524. POWERS OF THE BOARD.
(a) In General.--The Board shall conduct audits and reviews of
spending of covered funds and coordinate on such activities with the
inspectors general of the relevant agency to avoid duplication and
overlap of work.
(b) Audits and Reviews.--The Board may--
(1) conduct its own independent audits and reviews relating to
covered funds; and
(2) collaborate on audits and reviews relating to covered funds
with any inspector general of an agency.
(c) Authorities.--
(1) Audits and reviews.--In conducting audits and reviews, the
Board shall have the authorities provided under section 6 of the
Inspector General Act of 1978 (5 U.S.C. App.). Additionally, the
Board may issue subpoenas to compel the testimony of persons who
are not Federal officers or employees and may enforce such
subpoenas in the same manner as provided for inspector general
subpoenas under section 6 of the Inspector General Act of 1978 (5
U.S.C. App.).
(2) Standards and guidelines.--The Board shall carry out the
powers under subsections (a) and (b) in accordance with section
4(b)(1) of the Inspector General Act of 1978 (5 U.S.C. App.).
(d) Public Hearings.--The Board may hold public hearings and Board
personnel may conduct necessary inquiries. The head of each agency
shall make all officers and employees of that agency available to
provide testimony to the Board and Board personnel. The Board may issue
subpoenas to compel the testimony of persons who are not Federal
officers or employees at such public hearings. Any such subpoenas may
be enforced in the same manner as provided for inspector general
subpoenas under section 6 of the Inspector General Act of 1978 (5
U.S.C. App.).
(e) Contracts.--The Board may enter into contracts to enable the
Board to discharge its duties under this subtitle, including contracts
and other arrangements for audits, studies, analyses, and other
services with public agencies and with private persons, and make such
payments as may be necessary to carry out the duties of the Board.
(f) Transfer of Funds.--The Board may transfer funds appropriated
to the Board for expenses to support administrative support services
and audits, reviews, or other activities related to oversight by the
Board of covered funds to any office of inspector general, the Office
of Management and Budget, the General Services Administration, and the
Panel.
SEC. 1525. EMPLOYMENT, PERSONNEL, AND RELATED AUTHORITIES.
(a) Employment and Personnel Authorities.--
(1) In general.--
(A) Authorities.--Subject to paragraph (2), the Board may
exercise the authorities of subsections (b) through (i) of
section 3161 of title 5, United States Code (without regard to
subsection (a) of that section).
(B) Application.--For purposes of exercising the
authorities described under subparagraph (A), the term
``Chairperson of the Board'' shall be substituted for the term
``head of a temporary organization''.
(C) Consultation.--In exercising the authorities described
under subparagraph (A), the Chairperson shall consult with
members of the Board.
(2) Employment authorities.--In exercising the employment
authorities under subsection (b) of section 3161 of title 5, United
States Code, as provided under paragraph (1) of this subsection--
(A) paragraph (2) of subsection (b) of section 3161 of that
title (relating to periods of appointments) shall not apply;
and
(B) no period of appointment may exceed the date on which
the Board terminates under section 1530.
(b) Information and Assistance.--
(1) In general.--Upon request of the Board for information or
assistance from any agency or other entity of the Federal
Government, the head of such entity shall, insofar as is
practicable and not in contravention of any existing law, furnish
such information or assistance to the Board, or an authorized
designee.
(2) Report of refusals.--Whenever information or assistance
requested by the Board is, in the judgment of the Board,
unreasonably refused or not provided, the Board shall report the
circumstances to the congressional committees of jurisdiction,
including the Committees on Appropriations of the Senate and House
of Representatives, without delay.
(c) Administrative Support.--The General Services Administration
shall provide the Board with administrative support services, including
the provision of office space and facilities.
SEC. 1526. BOARD WEBSITE.
(a) Establishment.--The Board shall establish and maintain, no
later than 30 days after enactment of this Act, a user-friendly,
public-facing website to foster greater accountability and transparency
in the use of covered funds.
(b) Purpose.--The website established and maintained under
subsection (a) shall be a portal or gateway to key information relating
to this Act and provide connections to other Government websites with
related information.
(c) Content and Function.--In establishing the website established
and maintained under subsection (a), the Board shall ensure the
following:
(1) The website shall provide materials explaining what this
Act means for citizens. The materials shall be easy to understand
and regularly updated.
(2) The website shall provide accountability information,
including findings from audits, inspectors general, and the
Government Accountability Office.
(3) The website shall provide data on relevant economic,
financial, grant, and contract information in user-friendly visual
presentations to enhance public awareness of the use of covered
funds.
(4) The website shall provide detailed data on contracts
awarded by the Federal Government that expend covered funds,
including information about the competitiveness of the contracting
process, information about the process that was used for the award
of contracts, and for contracts over $500,000 a summary of the
contract.
(5) The website shall include printable reports on covered
funds obligated by month to each State and congressional district.
(6) The website shall provide a means for the public to give
feedback on the performance of contracts that expend covered funds.
(7) The website shall include detailed information on Federal
Government contracts and grants that expend covered funds, to
include the data elements required to comply with the Federal
Funding Accountability and Transparency Act of 2006 (Public Law
109-282), allowing aggregate reporting on awards below $25,000 or
to individuals, as prescribed by the Director of the Office of
Management and Budget.
(8) The website shall provide a link to estimates of the jobs
sustained or created by the Act.
(9) The website shall provide a link to information about
announcements of grant competitions and solicitations for contracts
to be awarded.
(10) The website shall include appropriate links to other
government websites with information concerning covered funds,
including Federal agency and State websites.
(11) The website shall include a plan from each Federal agency
for using funds made available in this Act to the agency.
(12) The website shall provide information on Federal
allocations of formula grants and awards of competitive grants
using covered funds.
(13) The website shall provide information on Federal
allocations of mandatory and other entitlement programs by State,
county, or other appropriate geographical unit.
(14) To the extent practical, the website shall provide,
organized by the location of the job opportunities involved, links
to and information about how to access job opportunities,
including, if possible, links to or information about local
employment agencies, job banks operated by State workforce
agencies, the Department of Labor's CareerOneStop website, State,
local and other public agencies receiving Federal funding, and
private firms contracted to perform work with Federal funding, in
order to direct job seekers to job opportunities created by this
Act.
(15) The website shall be enhanced and updated as necessary to
carry out the purposes of this subtitle.
(d) Waiver.--The Board may exclude posting contractual or other
information on the website on a case-by-case basis when necessary to
protect national security or to protect information that is not subject
to disclosure under sections 552 and 552a of title 5, United States
Code.
SEC. 1527. INDEPENDENCE OF INSPECTORS GENERAL.
(a) Independent Authority.--Nothing in this subtitle shall affect
the independent authority of an inspector general to determine whether
to conduct an audit or investigation of covered funds.
(b) Requests by Board.--If the Board requests that an inspector
general conduct or refrain from conducting an audit or investigation
and the inspector general rejects the request in whole or in part, the
inspector general shall, not later than 30 days after rejecting the
request, submit a report to the Board, the head of the applicable
agency, and the congressional committees of jurisdiction, including the
Committees on Appropriations of the Senate and House of
Representatives. The report shall state the reasons that the inspector
general has rejected the request in whole or in part. The inspector
general's decision shall be final.
SEC. 1528. COORDINATION WITH THE COMPTROLLER GENERAL AND STATE
AUDITORS.
The Board shall coordinate its oversight activities with the
Comptroller General of the United States and State auditors.
SEC. 1529. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as necessary to
carry out this subtitle.
SEC. 1530. TERMINATION OF THE BOARD.
The Board shall terminate on September 30, 2013.
Subtitle C--Recovery Independent Advisory Panel
SEC. 1541. ESTABLISHMENT OF RECOVERY INDEPENDENT ADVISORY PANEL.
(a) Establishment.--There is established the Recovery Independent
Advisory Panel.
(b) Membership.--The Panel shall be composed of 5 members who shall
be appointed by the President.
(c) Qualifications.--Members shall be appointed on the basis of
expertise in economics, public finance, contracting, accounting, or any
other relevant field.
(d) Initial Meeting.--Not later than 30 days after the date on
which all members of the Panel have been appointed, the Panel shall
hold its first meeting.
(e) Meetings.--The Panel shall meet at the call of the Chairperson
of the Panel.
(f) Quorum.--A majority of the members of the Panel shall
constitute a quorum, but a lesser number of members may hold hearings.
(g) Chairperson and Vice Chairperson.--The Panel shall select a
Chairperson and Vice Chairperson from among its members.
SEC. 1542. DUTIES OF THE PANEL.
The Panel shall make recommendations to the Board on actions the
Board could take to prevent fraud, waste, and abuse relating to covered
funds.
SEC. 1543. POWERS OF THE PANEL.
(a) Hearings.--The Panel may hold such hearings, sit and act at
such times and places, take such testimony, and receive such evidence
as the Panel considers advisable to carry out this subtitle.
(b) Information From Federal Agencies.--The Panel may secure
directly from any agency such information as the Panel considers
necessary to carry out this subtitle. Upon request of the Chairperson
of the Panel, the head of such agency shall furnish such information to
the Panel.
(c) Postal Services.--The Panel may use the United States mails in
the same manner and under the same conditions as agencies of the
Federal Government.
(d) Gifts.--The Panel may accept, use, and dispose of gifts or
donations of services or property.
SEC. 1544. PANEL PERSONNEL MATTERS.
(a) Compensation of Members.--Each member of the Panel who is not
an officer or employee of the Federal Government shall be compensated
at a rate equal to the daily equivalent of the annual rate of basic pay
prescribed for level IV of the Executive Schedule under section 5315 of
title 5, United States Code, for each day (including travel time)
during which such member is engaged in the performance of the duties of
the Panel. All members of the Panel who are officers or employees of
the United States shall serve without compensation in addition to that
received for their services as officers or employees of the United
States.
(b) Travel Expenses.--The members of the Panel shall be allowed
travel expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of chapter 57
of title 5, United States Code, while away from their homes or regular
places of business in the performance of services for the Panel.
(c) Staff.--
(1) In general.--The Chairperson of the Panel may, without
regard to the civil service laws and regulations, appoint and
terminate an executive director and such other additional personnel
as may be necessary to enable the Panel to perform its duties. The
employment of an executive director shall be subject to
confirmation by the Panel.
(2) Compensation.--The Chairperson of the Panel may fix the
compensation of the executive director and other personnel without
regard to chapter 51 and subchapter III of chapter 53 of title 5,
United States Code, relating to classification of positions and
General Schedule pay rates, except that the rate of pay for the
executive director and other personnel may not exceed the rate
payable for level V of the Executive Schedule under section 5316 of
such title.
(3) Personnel as federal employees.--
(A) In general.--The executive director and any personnel
of the Panel who are employees shall be employees under section
2105 of title 5, United States Code, for purposes of chapters
63, 81, 83, 84, 85, 87, 89, 89A, 89B, and 90 of that title.
(B) Members of panel.--Subparagraph (A) shall not be
construed to apply to members of the Panel.
(d) Detail of Government Employees.--Any Federal Government
employee may be detailed to the Panel without reimbursement, and such
detail shall be without interruption or loss of civil service status or
privilege.
(e) Procurement of Temporary and Intermittent Services.--The
Chairperson of the Panel may procure temporary and intermittent
services under section 3109(b) of title 5, United States Code, at rates
for individuals which do not exceed the daily equivalent of the annual
rate of basic pay prescribed for level V of the Executive Schedule
under section 5316 of such title.
(f) Administrative Support.--The General Services Administration
shall provide the Panel with administrative support services, including
the provision of office space and facilities.
SEC. 1545. TERMINATION OF THE PANEL.
The Panel shall terminate on September 30, 2013.
SEC. 1546. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as necessary to
carry out this subtitle.
Subtitle D--Additional Accountability and Transparency Requirements
SEC. 1551. AUTHORITY TO ESTABLISH SEPARATE FUNDING ACCOUNTS.
Although this Act provides supplemental appropriations for
programs, projects, and activities in existing Treasury accounts, to
facilitate tracking these funds through Treasury and agency accounting
systems, the Secretary of the Treasury shall ensure that all funds
appropriated in this Act shall be established in separate Treasury
accounts, unless a waiver from this provision is approved by the
Director of the Office of Management and Budget.
SEC. 1552. SET-ASIDE FOR STATE AND LOCAL GOVERNMENT REPORTING AND
RECORDKEEPING.
Federal agencies receiving funds under this Act, may, after
following the notice and comment rulemaking requirements under the
Administrative Procedures Act (5 U.S.C. 500), reasonably adjust
applicable limits on administrative expenditures for Federal awards to
help award recipients defray the costs of data collection requirements
initiated pursuant to this Act.
SEC. 1553. PROTECTING STATE AND LOCAL GOVERNMENT AND CONTRACTOR
WHISTLEBLOWERS.
(a) Prohibition of Reprisals.--An employee of any non-Federal
employer receiving covered funds may not be discharged, demoted, or
otherwise discriminated against as a reprisal for disclosing, including
a disclosure made in the ordinary course of an employee's duties, to
the Board, an inspector general, the Comptroller General, a member of
Congress, a State or Federal regulatory or law enforcement agency, a
person with supervisory authority over the employee (or such other
person working for the employer who has the authority to investigate,
discover, or terminate misconduct), a court or grand jury, the head of
a Federal agency, or their representatives, information that the
employee reasonably believes is evidence of--
(1) gross mismanagement of an agency contract or grant relating
to covered funds;
(2) a gross waste of covered funds;
(3) a substantial and specific danger to public health or
safety related to the implementation or use of covered funds;
(4) an abuse of authority related to the implementation or use
of covered funds; or
(5) a violation of law, rule, or regulation related to an
agency contract (including the competition for or negotiation of a
contract) or grant, awarded or issued relating to covered funds.
(b) Investigation of Complaints.--
(1) In general.--A person who believes that the person has been
subjected to a reprisal prohibited by subsection (a) may submit a
complaint regarding the reprisal to the appropriate inspector
general. Except as provided under paragraph (3), unless the
inspector general determines that the complaint is frivolous, does
not relate to covered funds, or another Federal or State judicial
or administrative proceeding has previously been invoked to resolve
such complaint, the inspector general shall investigate the
complaint and, upon completion of such investigation, submit a
report of the findings of the investigation to the person, the
person's employer, the head of the appropriate agency, and the
Board.
(2) Time limitations for actions.--
(A) In general.--Except as provided under subparagraph (B),
the inspector general shall, not later than 180 days after
receiving a complaint under paragraph (1)--
(i) make a determination that the complaint is
frivolous, does not relate to covered funds, or another
Federal or State judicial or administrative proceeding has
previously been invoked to resolve such complaint; or
(ii) submit a report under paragraph (1).
(B) Extensions.--
(i) Voluntary extension agreed to between inspector
general and complainant.--If the inspector general is
unable to complete an investigation under this section in
time to submit a report within the 180-day period specified
under subparagraph (A) and the person submitting the
complaint agrees to an extension of time, the inspector
general shall submit a report under paragraph (1) within
such additional period of time as shall be agreed upon
between the inspector general and the person submitting the
complaint.
(ii) Extension granted by inspector general.--If the
inspector general is unable to complete an investigation
under this section in time to submit a report within the
180-day period specified under subparagraph (A), the
inspector general may extend the period for not more than
180 days without agreeing with the person submitting the
complaint to such extension, provided that the inspector
general provides a written explanation (subject to the
authority to exclude information under paragraph (4)(C))
for the decision, which shall be provided to both the
person submitting the complaint and the non-Federal
employer.
(iii) Semi-annual report on extensions.--The inspector
general shall include in semi-annual reports to Congress a
list of those investigations for which the inspector
general received an extension.
(3) Discretion not to investigate complaints.--
(A) In general.--The inspector general may decide not to
conduct or continue an investigation under this section upon
providing to the person submitting the complaint and the non-
Federal employer a written explanation (subject to the
authority to exclude information under paragraph (4)(C)) for
such decision.
(B) Assumption of rights to civil remedy.--Upon receipt of
an explanation of a decision not to conduct or continue an
investigation under subparagraph (A), the person submitting a
complaint shall immediately assume the right to a civil remedy
under subsection (c)(3) as if the 210-day period specified
under such subsection has already passed.
(C) Semi-annual report.--The inspector general shall
include in semi-annual reports to Congress a list of those
investigations the inspector general decided not to conduct or
continue under this paragraph.
(4) Access to investigative file of inspector general.--
(A) In general.--The person alleging a reprisal under this
section shall have access to the investigation file of the
appropriate inspector general in accordance with section 552a
of title 5, United States Code (commonly referred to as the
``Privacy Act''). The investigation of the inspector general
shall be deemed closed for purposes of disclosure under such
section when an employee files an appeal to an agency head or a
court of competent jurisdiction.
(B) Civil action.--In the event the person alleging the
reprisal brings suit under subsection (c)(3), the person
alleging the reprisal and the non-Federal employer shall have
access to the investigative file of the inspector general in
accordance with the Privacy Act.
(C) Exception.--The inspector general may exclude from
disclosure--
(i) information protected from disclosure by a
provision of law; and
(ii) any additional information the inspector general
determines disclosure of which would impede a continuing
investigation, provided that such information is disclosed
once such disclosure would no longer impede such
investigation, unless the inspector general determines that
disclosure of law enforcement techniques, procedures, or
information could reasonably be expected to risk
circumvention of the law or disclose the identity of a
confidential source.
(5) Privacy of information.--An inspector general investigating
an alleged reprisal under this section may not respond to any
inquiry or disclose any information from or about any person
alleging such reprisal, except in accordance with the provisions of
section 552a of title 5, United States Code, or as required by any
other applicable Federal law.
(c) Remedy and Enforcement Authority.--
(1) Burden of proof.--
(A) Disclosure as contributing factor in reprisal.--
(i) In general.--A person alleging a reprisal under
this section shall be deemed to have affirmatively
established the occurrence of the reprisal if the person
demonstrates that a disclosure described in subsection (a)
was a contributing factor in the reprisal.
(ii) Use of circumstantial evidence.--A disclosure may
be demonstrated as a contributing factor in a reprisal for
purposes of this paragraph by circumstantial evidence,
including--
(I) evidence that the official undertaking the
reprisal knew of the disclosure; or
(II) evidence that the reprisal occurred within a
period of time after the disclosure such that a
reasonable person could conclude that the disclosure
was a contributing factor in the reprisal.
(B) Opportunity for rebuttal.--The head of an agency may
not find the occurrence of a reprisal with respect to a
reprisal that is affirmatively established under subparagraph
(A) if the non-Federal employer demonstrates by clear and
convincing evidence that the non-Federal employer would have
taken the action constituting the reprisal in the absence of
the disclosure.
(2) Agency action.--Not later than 30 days after receiving an
inspector general report under subsection (b), the head of the
agency concerned shall determine whether there is sufficient basis
to conclude that the non-Federal employer has subjected the
complainant to a reprisal prohibited by subsection (a) and shall
either issue an order denying relief in whole or in part or shall
take 1 or more of the following actions:
(A) Order the employer to take affirmative action to abate
the reprisal.
(B) Order the employer to reinstate the person to the
position that the person held before the reprisal, together
with the compensation (including back pay), compensatory
damages, employment benefits, and other terms and conditions of
employment that would apply to the person in that position if
the reprisal had not been taken.
(C) Order the employer to pay the complainant an amount
equal to the aggregate amount of all costs and expenses
(including attorneys' fees and expert witnesses' fees) that
were reasonably incurred by the complainant for, or in
connection with, bringing the complaint regarding the reprisal,
as determined by the head of the agency or a court of competent
jurisdiction.
(3) Civil action.--If the head of an agency issues an order
denying relief in whole or in part under paragraph (1), has not
issued an order within 210 days after the submission of a complaint
under subsection (b), or in the case of an extension of time under
subsection (b)(2)(B)(i), within 30 days after the expiration of the
extension of time, or decides under subsection (b)(3) not to
investigate or to discontinue an investigation, and there is no
showing that such delay or decision is due to the bad faith of the
complainant, the complainant shall be deemed to have exhausted all
administrative remedies with respect to the complaint, and the
complainant may bring a de novo action at law or equity against the
employer to seek compensatory damages and other relief available
under this section in the appropriate district court of the United
States, which shall have jurisdiction over such an action without
regard to the amount in controversy. Such an action shall, at the
request of either party to the action, be tried by the court with a
jury.
(4) Judicial enforcement of order.--Whenever a person fails to
comply with an order issued under paragraph (2), the head of the
agency shall file an action for enforcement of such order in the
United States district court for a district in which the reprisal
was found to have occurred. In any action brought under this
paragraph, the court may grant appropriate relief, including
injunctive relief, compensatory and exemplary damages, and
attorneys fees and costs.
(5) Judicial review.--Any person adversely affected or
aggrieved by an order issued under paragraph (2) may obtain review
of the order's conformance with this subsection, and any
regulations issued to carry out this section, in the United States
court of appeals for a circuit in which the reprisal is alleged in
the order to have occurred. No petition seeking such review may be
filed more than 60 days after issuance of the order by the head of
the agency. Review shall conform to chapter 7 of title 5, United
States Code.
(d) Nonenforceability of Certain Provisions Waiving Rights and
Remedies or Requiring Arbitration of Disputes.--
(1) Waiver of rights and remedies.--Except as provided under
paragraph (3), the rights and remedies provided for in this section
may not be waived by any agreement, policy, form, or condition of
employment, including by any predispute arbitration agreement.
(2) Predispute arbitration agreements.--Except as provided
under paragraph (3), no predispute arbitration agreement shall be
valid or enforceable if it requires arbitration of a dispute
arising under this section.
(3) Exception for collective bargaining agreements.--
Notwithstanding paragraphs (1) and (2), an arbitration provision in
a collective bargaining agreement shall be enforceable as to
disputes arising under the collective bargaining agreement.
(e) Requirement to Post Notice of Rights and Remedies.--Any
employer receiving covered funds shall post notice of the rights and
remedies provided under this section.
(f) Rules of Construction.--
(1) No implied authority to retaliate for non-protected
disclosures.--Nothing in this section may be construed to authorize
the discharge of, demotion of, or discrimination against an
employee for a disclosure other than a disclosure protected by
subsection (a) or to modify or derogate from a right or remedy
otherwise available to the employee.
(2) Relationship to state laws.--Nothing in this section may be
construed to preempt, preclude, or limit the protections provided
for public or private employees under State whistleblower laws.
(g) Definitions.--In this section:
(1) Abuse of authority.--The term ``abuse of authority'' means
an arbitrary and capricious exercise of authority by a contracting
official or employee that adversely affects the rights of any
person, or that results in personal gain or advantage to the
official or employee or to preferred other persons.
(2) Covered funds.--The term ``covered funds'' means any
contract, grant, or other payment received by any non-Federal
employer if--
(A) the Federal Government provides any portion of the
money or property that is provided, requested, or demanded; and
(B) at least some of the funds are appropriated or
otherwise made available by this Act.
(3) Employee.--The term ``employee''--
(A) except as provided under subparagraph (B), means an
individual performing services on behalf of an employer; and
(B) does not include any Federal employee or member of the
uniformed services (as that term is defined in section
101(a)(5) of title 10, United States Code).
(4) Non-federal employer.--The term ``non-Federal employer''--
(A) means any employer--
(i) with respect to covered funds--
(I) the contractor, subcontractor, grantee, or
recipient, as the case may be, if the contractor,
subcontractor, grantee, or recipient is an employer;
and
(II) any professional membership organization,
certification or other professional body, any agent or
licensee of the Federal government, or any person
acting directly or indirectly in the interest of an
employer receiving covered funds; or
(ii) with respect to covered funds received by a State
or local government, the State or local government
receiving the funds and any contractor or subcontractor of
the State or local government; and
(B) does not mean any department, agency, or other entity
of the Federal Government.
(5) State or local government.--The term ``State or local
government'' means--
(A) the government of each of the several States, the
District of Columbia, the Commonwealth of Puerto Rico, Guam,
American Samoa, the Virgin Islands, the Commonwealth of the
Northern Mariana Islands, or any other territory or possession
of the United States; or
(B) the government of any political subdivision of a
government listed in subparagraph (A).
SEC. 1554. SPECIAL CONTRACTING PROVISIONS.
To the maximum extent possible, contracts funded under this Act
shall be awarded as fixed-price contracts through the use of
competitive procedures. A summary of any contract awarded with such
funds that is not fixed-price and not awarded using competitive
procedures shall be posted in a special section of the website
established in section 1526.
TITLE XVI--GENERAL PROVISIONS--THIS ACT
RELATIONSHIP TO OTHER APPROPRIATIONS
Sec. 1601. Each amount appropriated or made available in this Act
is in addition to amounts otherwise appropriated for the fiscal year
involved. Enactment of this Act shall have no effect on the
availability of amounts under the Continuing Appropriations Resolution,
2009 (division A of Public Law 110-329).
PREFERENCE FOR QUICK-START ACTIVITIES
Sec. 1602. In using funds made available in this Act for
infrastructure investment, recipients shall give preference to
activities that can be started and completed expeditiously, including a
goal of using at least 50 percent of the funds for activities that can
be initiated not later than 120 days after the date of the enactment of
this Act. Recipients shall also use grant funds in a manner that
maximizes job creation and economic benefit.
PERIOD OF AVAILABILITY
Sec. 1603. All funds appropriated in this Act shall remain
available for obligation until September 30, 2010, unless expressly
provided otherwise in this Act.
LIMIT ON FUNDS
Sec. 1604. None of the funds appropriated or otherwise made
available in this Act may be used by any State or local government, or
any private entity, for any casino or other gambling establishment,
aquarium, zoo, golf course, or swimming pool.
BUY AMERICAN
Sec. 1605. Use of American Iron, Steel, and Manufactured Goods.
(a) None of the funds appropriated or otherwise made available by this
Act may be used for a project for the construction, alteration,
maintenance, or repair of a public building or public work unless all
of the iron, steel, and manufactured goods used in the project are
produced in the United States.
(b) Subsection (a) shall not apply in any case or category of cases
in which the head of the Federal department or agency involved finds
that--
(1) applying subsection (a) would be inconsistent with the
public interest;
(2) iron, steel, and the relevant manufactured goods are not
produced in the United States in sufficient and reasonably
available quantities and of a satisfactory quality; or
(3) inclusion of iron, steel, and manufactured goods produced
in the United States will increase the cost of the overall project
by more than 25 percent.
(c) If the head of a Federal department or agency determines that
it is necessary to waive the application of subsection (a) based on a
finding under subsection (b), the head of the department or agency
shall publish in the Federal Register a detailed written justification
as to why the provision is being waived.
(d) This section shall be applied in a manner consistent with
United States obligations under international agreements.
WAGE RATE REQUIREMENTS
Sec. 1606. Notwithstanding any other provision of law and in a
manner consistent with other provisions in this Act, all laborers and
mechanics employed by contractors and subcontractors on projects funded
directly by or assisted in whole or in part by and through the Federal
Government pursuant to this Act shall be paid wages at rates not less
than those prevailing on projects of a character similar in the
locality as determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States Code. With
respect to the labor standards specified in this section, the Secretary
of Labor shall have the authority and functions set forth in
Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.)
and section 3145 of title 40, United States Code.
ADDITIONAL FUNDING DISTRIBUTION AND ASSURANCE OF APPROPRIATE USE OF
FUNDS
Sec. 1607. (a) Certification by Governor.--Not later than 45 days
after the date of enactment of this Act, for funds provided to any
State or agency thereof, the Governor of the State shall certify that:
(1) the State will request and use funds provided by this Act; and (2)
the funds will be used to create jobs and promote economic growth.
(b) Acceptance by State Legislature.--If funds provided to any
State in any division of this Act are not accepted for use by the
Governor, then acceptance by the State legislature, by means of the
adoption of a concurrent resolution, shall be sufficient to provide
funding to such State.
(c) Distribution.--After the adoption of a State legislature's
concurrent resolution, funding to the State will be for distribution to
local governments, councils of government, public entities, and public-
private entities within the State either by formula or at the State's
discretion.
economic stabilization contracting
Sec. 1608. Reform of Contracting Procedures Under EESA. Section
107(b) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C.
5217(b)) is amended by inserting ``and individuals with disabilities
and businesses owned by individuals with disabilities (for purposes of
this subsection the term `individual with disability' has the same
meaning as the term `handicapped individual' as that term is defined in
section 3(f) of the Small Business Act (15 U.S.C. 632(f)),'' after
``(12 U.S.C. 1441a(r)(4)),''.
Sec. 1609. (a) Findings.--
(1) The National Environmental Policy Act protects public
health, safety and environmental quality: by ensuring transparency,
accountability and public involvement in federal actions and in the
use of public funds;
(2) When President Nixon signed the National Environmental
Policy Act into law on January 1, 1970, he said that the Act
provided the ``direction'' for the country to ``regain a productive
harmony between man and nature'';
(3) The National Environmental Policy Act helps to provide an
orderly process for considering federal actions and funding
decisions and prevents ligation and delay that would otherwise be
inevitable and existed prior to the establishment of the National
Environmental Policy Act.
(b) Adequate resources within this bill must be devoted to ensuring
that applicable environmental reviews under the National Environmental
Policy Act are completed on an expeditious basis and that the shortest
existing applicable process under the National Environmental Policy Act
shall be utilized.
(c) The President shall report to the Senate Environment and Public
Works Committee and the House Natural Resources Committee every 90 days
following the date of enactment until September 30, 2011 on the status
and progress of projects and activities funded by this Act with respect
to compliance with National Environmental Policy Act requirements and
documentation.
Sec. 1610. (a) None of the funds appropriated or otherwise made
available by this Act, for projects initiated after the effective date
of this Act, may be used by an executive agency to enter into any
Federal contract unless such contract is entered into in accordance
with the Federal Property and Administrative Services Act (41 U.S.C.
253) or chapter 137 of title 10, United States Code, and the Federal
Acquisition Regulation, unless such contract is otherwise authorized by
statute to be entered into without regard to the above referenced
statutes.
(b) All projects to be conducted under the authority of the Indian
Self-Determination and Education Assistance Act, the Tribally-
Controlled Schools Act, the Sanitation and Facilities Act, the Native
American Housing and Self-Determination Assistance Act and the Buy-
Indian Act shall be identified by the appropriate Secretary and the
appropriate Secretary shall incorporate provisions to ensure that the
agreement conforms with the provisions of this Act regarding the timing
for use of funds and transparency, oversight, reporting, and
accountability, including review by the Inspectors General, the
Accountability and Transparency Board, and Government Accountability
Office, consistent with the objectives of this Act.
Sec. 1611. Hiring American Workers in Companies Receiving TARP
Funding. (a) Short Title.--This section may be cited as the ``Employ
American Workers Act''.
(b) Prohibition.--
(1) In general.--Notwithstanding any other provision of law, it
shall be unlawful for any recipient of funding under title I of the
Emergency Economic Stabilization Act of 2008 (Public Law 110-343)
or section 13 of the Federal Reserve Act (12 U.S.C. 342 et seq.) to
hire any nonimmigrant described in section 101(a)(15)(h)(i)(b) of
the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(h)(i)(b))
unless the recipient is in compliance with the requirements for an
H-1B dependent employer (as defined in section 212(n)(3) of such
Act (8 U.S.C. 1182(n)(3))), except that the second sentence of
section 212(n)(1)(E)(ii) of such Act shall not apply.
(2) Defined term.--In this subsection, the term ``hire'' means
to permit a new employee to commence a period of employment.
(c) Sunset Provision.--This section shall be effective during the
2-year period beginning on the date of the enactment of this Act.
Sec. 1612. During the current fiscal year not to exceed 1 percent
of any appropriation made available by this Act may be transferred by
an agency head between such appropriations funded in this Act of that
department or agency: Provided, That such appropriations shall be
merged with and available for the same purposes, and for the same time
period, as the appropriation to which transferred: Provided further,
That the agency head shall notify the Committees on Appropriations of
the Senate and House of Representatives of the transfer 15 days in
advance: Provided further, That notice of any transfer made pursuant to
this authority be posted on the website established by the Recovery Act
Accountability and Transparency Board 15 days following such transfer:
Provided further, That the authority contained in this section is in
addition to transfer authorities otherwise available under current law:
Provided further, That the authority provided in this section shall not
apply to any appropriation that is subject to transfer provisions
included elsewhere in this Act.
DIVISION B--TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND OTHER
PROVISIONS
TITLE I--TAX PROVISIONS
SEC. 1000. SHORT TITLE, ETC.
(a) Short Title.--This title may be cited as the ``American
Recovery and Reinvestment Tax Act of 2009''.
(b) Reference.--Except as otherwise expressly provided, whenever in
this title an amendment or repeal is expressed in terms of an amendment
to, or repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Internal
Revenue Code of 1986.
(c) Table of Contents.--The table of contents for this title is as
follows:
TITLE I--TAX PROVISIONS
Sec. 1000. Short title, etc.
Subtitle A--Tax Relief for Individuals and Families
PART I--General Tax Relief
Sec. 1001. Making work pay credit.
Sec. 1002. Temporary increase in earned income tax credit.
Sec. 1003. Temporary increase of refundable portion of child credit.
Sec. 1004. American opportunity tax credit.
Sec. 1005. Computer technology and equipment allowed as a qualified
higher education expense for section 529 accounts in 2009 and
2010.
Sec. 1006. Extension of and increase in first-time homebuyer credit;
waiver of requirement to repay.
Sec. 1007. Suspension of tax on portion of unemployment compensation.
Sec. 1008. Additional deduction for State sales tax and excise tax on
the purchase of certain motor vehicles.
PART II--Alternative Minimum Tax Relief
Sec. 1011. Extension of alternative minimum tax relief for nonrefundable
personal credits.
Sec. 1012. Extension of increased alternative minimum tax exemption
amount.
Subtitle B--Energy Incentives
PART I--Renewable Energy Incentives
Sec. 1101. Extension of credit for electricity produced from certain
renewable resources.
Sec. 1102. Election of investment credit in lieu of production credit.
Sec. 1103. Repeal of certain limitations on credit for renewable energy
property.
Sec. 1104. Coordination with renewable energy grants.
PART II--Increased Allocations of New Clean Renewable Energy Bonds and
Qualified Energy Conservation Bonds
Sec. 1111. Increased limitation on issuance of new clean renewable
energy bonds.
Sec. 1112. Increased limitation on issuance of qualified energy
conservation bonds.
PART III--Energy Conservation Incentives
Sec. 1121. Extension and modification of credit for nonbusiness energy
property.
Sec. 1122. Modification of credit for residential energy efficient
property.
Sec. 1123. Temporary increase in credit for alternative fuel vehicle
refueling property.
PART IV--Modification of Credit for Carbon Dioxide Sequestration
Sec. 1131. Application of monitoring requirements to carbon dioxide used
as a tertiary injectant.
PART V--Plug-in Electric Drive Motor Vehicles
Sec. 1141. Credit for new qualified plug-in electric drive motor
vehicles.
Sec. 1142. Credit for certain plug-in electric vehicles.
Sec. 1143. Conversion kits.
Sec. 1144. Treatment of alternative motor vehicle credit as a personal
credit allowed against AMT.
PART VI--Parity for Transportation Fringe Benefits
Sec. 1151. Increased exclusion amount for commuter transit benefits and
transit passes.
Subtitle C--Tax Incentives for Business
PART I--Temporary Investment Incentives
Sec. 1201. Special allowance for certain property acquired during 2009.
Sec. 1202. Temporary increase in limitations on expensing of certain
depreciable business assets.
PART II--Small Business Provisions
Sec. 1211. 5-year carryback of operating losses of small businesses.
Sec. 1212. Decreased required estimated tax payments in 2009 for certain
small businesses.
PART III--Incentives for New Jobs
Sec. 1221. Incentives to hire unemployed veterans and disconnected
youth.
PART IV--Rules Relating to Debt Instruments
Sec. 1231. Deferral and ratable inclusion of income arising from
business indebtedness discharged by the reacquisition of a
debt instrument.
Sec. 1232. Modifications of rules for original issue discount on certain
high yield obligations.
PART V--Qualified Small Business Stock
Sec. 1241. Special rules applicable to qualified small business stock
for 2009 and 2010.
PART VI--S Corporations
Sec. 1251. Temporary reduction in recognition period for built-in gains
tax.
PART VII--Rules Relating to Ownership Changes
Sec. 1261. Clarification of regulations related to limitations on
certain built-in losses following an ownership change.
Sec. 1262. Treatment of certain ownership changes for purposes of
limitations on net operating loss carryforwards and certain
built-in losses.
Subtitle D--Manufacturing Recovery Provisions
Sec. 1301. Temporary expansion of availability of industrial development
bonds to facilities manufacturing intangible property.
Sec. 1302. Credit for investment in advanced energy facilities.
Subtitle E--Economic Recovery Tools
Sec. 1401. Recovery zone bonds.
Sec. 1402. Tribal economic development bonds.
Sec. 1403. Increase in new markets tax credit.
Sec. 1404. Coordination of low-income housing credit and low-income
housing grants.
Subtitle F--Infrastructure Financing Tools
PART I--Improved Marketability for Tax-Exempt Bonds
Sec. 1501. De minimis safe harbor exception for tax-exempt interest
expense of financial institutions.
Sec. 1502. Modification of small issuer exception to tax-exempt interest
expense allocation rules for financial institutions.
Sec. 1503. Temporary modification of alternative minimum tax limitations
on tax-exempt bonds.
Sec. 1504. Modification to high speed intercity rail facility bonds.
PART II--Delay in Application of Withholding Tax on Government
Contractors
Sec. 1511. Delay in application of withholding tax on government
contractors.
PART III--Tax Credit Bonds for Schools
Sec. 1521. Qualified school construction bonds.
Sec. 1522. Extension and expansion of qualified zone academy bonds.
PART IV--Build America Bonds
Sec. 1531. Build America bonds.
PART V--Regulated Investment Companies Allowed to Pass-Thru Tax Credit
Bond Credits
Sec. 1541. Regulated investment companies allowed to pass-thru tax
credit bond credits.
Subtitle G--Other Provisions
Sec. 1601. Application of certain labor standards to projects financed
with certain tax-favored bonds.
Sec. 1602. Grants to States for low-income housing projects in lieu of
low-income housing credit allocations for 2009.
Sec. 1603. Grants for specified energy property in lieu of tax credits.
Sec. 1604. Increase in public debt limit.
Subtitle H--Prohibition on Collection of Certain Payments Made Under the
Continued Dumping and Subsidy Offset Act of 2000
Sec. 1701. Prohibition on collection of certain payments made under the
Continued Dumping and Subsidy Offset Act of 2000.
Subtitle I--Trade Adjustment Assistance
Sec. 1800. Short title.
PART I--Trade Adjustment Assistance for Workers
subpart a--trade adjustment assistance for service sector workers
Sec. 1801. Extension of trade adjustment assistance to service sector
and public agency workers; shifts in production.
Sec. 1802. Separate basis for certification.
Sec. 1803. Determinations by Secretary of Labor.
Sec. 1804. Monitoring and reporting relating to service sector.
subpart b--industry notifications following certain affirmative
determinations
Sec. 1811. Notifications following certain affirmative determinations.
Sec. 1812. Notification to Secretary of Commerce.
subpart c--program benefits
Sec. 1821. Qualifying Requirements for Workers.
Sec. 1822. Weekly amounts.
Sec. 1823. Limitations on trade readjustment allowances; allowances for
extended training and breaks in training.
Sec. 1824. Special rules for calculation of eligibility period.
Sec. 1825. Application of State laws and regulations on good cause for
waiver of time limits or late filing of claims.
Sec. 1826. Employment and case management services.
Sec. 1827. Administrative expenses and employment and case management
services.
Sec. 1828. Training funding.
Sec. 1829. Prerequisite education; approved training programs.
Sec. 1830. Pre-layoff and part-time training.
Sec. 1831. On-the-job training.
Sec. 1832. Eligibility for unemployment insurance and program benefits
while in training.
Sec. 1833. Job search and relocation allowances.
subpart d--reemployment trade adjustment assistance program
Sec. 1841. Reemployment trade adjustment assistance program.
subpart e--other matters
Sec. 1851. Office of Trade Adjustment Assistance.
Sec. 1852. Accountability of State agencies; collection and publication
of program data; agreements with States.
Sec. 1853. Verification of eligibility for program benefits.
Sec. 1854. Collection of data and reports; information to workers.
Sec. 1855. Fraud and recovery of overpayments.
Sec. 1856. Sense of Congress on application of trade adjustment
assistance.
Sec. 1857. Consultations in promulgation of regulations.
Sec. 1858. Technical corrections.
PART II--Trade Adjustment Assistance for Firms
Sec. 1861. Expansion to service sector firms.
Sec. 1862. Modification of requirements for certification.
Sec. 1863. Basis for determinations.
Sec. 1864. Oversight and administration; authorization of
appropriations.
Sec. 1865. Increased penalties for false statements.
Sec. 1866. Annual report on trade adjustment assistance for firms.
Sec. 1867. Technical corrections.
PART III--Trade Adjustment Assistance for Communities
Sec. 1871. Purpose.
Sec. 1872. Trade adjustment assistance for communities.
Sec. 1873. Conforming amendments.
PART IV--Trade Adjustment Assistance for Farmers
Sec. 1881. Definitions.
Sec. 1882. Eligibility.
Sec. 1883. Benefits.
Sec. 1884. Report.
Sec. 1885. Fraud and recovery of overpayments.
Sec. 1886. Determination of increases of imports for certain fishermen.
Sec. 1887. Extension of trade adjustment assistance for farmers.
PART V--General Provisions
Sec. 1891. Effective date.
Sec. 1892. Extension of trade adjustment assistance programs.
Sec. 1893. Termination; related provisions.
Sec. 1894. Government Accountability Office report.
Sec. 1895. Emergency designation.
PART VI--Health Coverage Improvement
Sec. 1899. Short title.
Sec. 1899A. Improvement of the affordability of the credit.
Sec. 1899B. Payment for monthly premiums paid prior to commencement of
advance payments of credit.
Sec. 1899C. TAA recipients not enrolled in training programs eligible
for credit.
Sec. 1899D. TAA pre-certification period rule for purposes of
determining whether there is a 63-day lapse in creditable
coverage.
Sec. 1899E. Continued qualification of family members after certain
events.
Sec. 1899F. Extension of COBRA benefits for certain TAA-eligible
individuals and PBGC recipients.
Sec. 1899G. Addition of coverage through voluntary employees'
beneficiary associations.
Sec. 1899H. Notice requirements.
Sec. 1899I. Survey and report on enhanced health coverage tax credit
program.
Sec. 1899J. Authorization of appropriations.
Sec. 1899K. Extension of national emergency grants.
Sec. 1899L. GAO study and report.
Subtitle A--Tax Relief for Individuals and Families
PART I--GENERAL TAX RELIEF
SEC. 1001. MAKING WORK PAY CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
is amended by inserting after section 36 the following new section:
``SEC. 36A. MAKING WORK PAY CREDIT.
``(a) Allowance of Credit.--In the case of an eligible individual,
there shall be allowed as a credit against the tax imposed by this
subtitle for the taxable year an amount equal to the lesser of--
``(1) 6.2 percent of earned income of the taxpayer, or
``(2) $400 ($800 in the case of a joint return).
``(b) Limitation Based on Modified Adjusted Gross Income.--
``(1) In general.--The amount allowable as a credit under
subsection (a) (determined without regard to this paragraph and
subsection (c)) for the taxable year shall be reduced (but not
below zero) by 2 percent of so much of the taxpayer's modified
adjusted gross income as exceeds $75,000 ($150,000 in the case of a
joint return).
``(2) Modified adjusted gross income.--For purposes of
subparagraph (A), the term `modified adjusted gross income' means
the adjusted gross income of the taxpayer for the taxable year
increased by any amount excluded from gross income under section
911, 931, or 933.
``(c) Reduction for Certain Other Payments.--The credit allowed
under subsection (a) for any taxable year shall be reduced by the
amount of any payments received by the taxpayer during such taxable
year under section 2201, and any credit allowed to the taxpayer under
section 2202, of the American Recovery and Reinvestment Tax Act of
2009.
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Eligible individual.--
``(A) In general.--The term `eligible individual' means any
individual other than--
``(i) any nonresident alien individual,
``(ii) any individual with respect to whom a deduction
under section 151 is allowable to another taxpayer for a
taxable year beginning in the calendar year in which the
individual's taxable year begins, and
``(iii) an estate or trust.
``(B) Identification number requirement.--Such term shall
not include any individual who does not include on the return
of tax for the taxable year--
``(i) such individual's social security account number,
and
``(ii) in the case of a joint return, the social
security account number of one of the taxpayers on such
return.
For purposes of the preceding sentence, the social security
account number shall not include a TIN issued by the Internal
Revenue Service.
``(2) Earned income.--The term `earned income' has the meaning
given such term by section 32(c)(2), except that such term shall
not include net earnings from self-employment which are not taken
into account in computing taxable income. For purposes of the
preceding sentence, any amount excluded from gross income by reason
of section 112 shall be treated as earned income which is taken
into account in computing taxable income for the taxable year.
``(e) Termination.--This section shall not apply to taxable years
beginning after December 31, 2010.''.
(b) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possession.--The Secretary of the Treasury
shall pay to each possession of the United States with a mirror
code tax system amounts equal to the loss to that possession by
reason of the amendments made by this section with respect to
taxable years beginning in 2009 and 2010. Such amounts shall be
determined by the Secretary of the Treasury based on
information provided by the government of the respective
possession.
(B) Other possessions.--The Secretary of the Treasury shall
pay to each possession of the United States which does not have
a mirror code tax system amounts estimated by the Secretary of
the Treasury as being equal to the aggregate benefits that
would have been provided to residents of such possession by
reason of the amendments made by this section for taxable years
beginning in 2009 and 2010 if a mirror code tax system had been
in effect in such possession. The preceding sentence shall not
apply with respect to any possession of the United States
unless such possession has a plan, which has been approved by
the Secretary of the Treasury, under which such possession will
promptly distribute such payments to the residents of such
possession.
(2) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United States
income taxes for any taxable year under section 36A of the Internal
Revenue Code of 1986 (as added by this section) to any person--
(A) to whom a credit is allowed against taxes imposed by
the possession by reason of the amendments made by this section
for such taxable year, or
(B) who is eligible for a payment under a plan described in
paragraph (1)(B) with respect to such taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes of this
subsection, the term ``possession of the United States''
includes the Commonwealth of Puerto Rico and the Commonwealth
of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income tax
system of such possession if the income tax liability of the
residents of such possession under such system is determined by
reference to the income tax laws of the United States as if
such possession were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments under
this subsection shall be treated in the same manner as a refund
due from the credit allowed under section 36A of the Internal
Revenue Code of 1986 (as added by this section).
(c) Refunds Disregarded in the Administration of Federal Programs
and Federally Assisted Programs.--Any credit or refund allowed or made
to any individual by reason of section 36A of the Internal Revenue Code
of 1986 (as added by this section) or by reason of subsection (b) of
this section shall not be taken into account as income and shall not be
taken into account as resources for the month of receipt and the
following 2 months, for purposes of determining the eligibility of such
individual or any other individual for benefits or assistance, or the
amount or extent of benefits or assistance, under any Federal program
or under any State or local program financed in whole or in part with
Federal funds.
(d) Authority Relating to Clerical Errors.--Section 6213(g)(2) is
amended by striking ``and'' at the end of subparagraph (L)(ii), by
striking the period at the end of subparagraph (M) and inserting ``,
and'', and by adding at the end the following new subparagraph:
``(N) an omission of the reduction required under section
36A(c) with respect to the credit allowed under section 36A or
an omission of the correct social security account number
required under section 36A(d)(1)(B).''.
(e) Conforming Amendments.--
(1) Section 6211(b)(4)(A) is amended by inserting ``36A,''
after ``36,''.
(2) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``36A,'' after ``36,''.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 is amended by inserting after the item
relating to section 36 the following new item:
``Sec. 36A. Making work pay credit.''.
(f) Effective Date.--This section, and the amendments made by this
section, shall apply to taxable years beginning after December 31,
2008.
SEC. 1002. TEMPORARY INCREASE IN EARNED INCOME TAX CREDIT.
(a) In General.--Subsection (b) of section 32 is amended by adding
at the end the following new paragraph:
``(3) Special rules for 2009 and 2010.--In the case of any
taxable year beginning in 2009 or 2010--
``(A) Increased credit percentage for 3 or more qualifying
children.--In the case of a taxpayer with 3 or more qualifying
children, the credit percentage is 45 percent.
``(B) Reduction of marriage penalty.--
``(i) In general.--The dollar amount in effect under
paragraph (2)(B) shall be $5,000.
``(ii) Inflation adjustment.--In the case of any
taxable year beginning in 2010, the $5,000 amount in clause
(i) shall be increased by an amount equal to--
``(I) such dollar amount, multiplied by
``(II) the cost of living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins determined by substituting
`calendar year 2008' for `calendar year 1992' in
subparagraph (B) thereof.
``(iii) Rounding.--Subparagraph (A) of subsection
(j)(2) shall apply after taking into account any increase
under clause (ii).''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 1003. TEMPORARY INCREASE OF REFUNDABLE PORTION OF CHILD CREDIT.
(a) In General.--Paragraph (4) of section 24(d) is amended to read
as follows:
``(4) Special rule for 2009 and 2010.--Notwithstanding
paragraph (3), in the case of any taxable year beginning in 2009 or
2010, the dollar amount in effect for such taxable year under
paragraph (1)(B)(i) shall be $3,000.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 1004. AMERICAN OPPORTUNITY TAX CREDIT.
(a) In General.--Section 25A (relating to Hope scholarship credit)
is amended by redesignating subsection (i) as subsection (j) and by
inserting after subsection (h) the following new subsection:
``(i) American Opportunity Tax Credit.--In the case of any taxable
year beginning in 2009 or 2010--
``(1) Increase in credit.--The Hope Scholarship Credit shall be
an amount equal to the sum of--
``(A) 100 percent of so much of the qualified tuition and
related expenses paid by the taxpayer during the taxable year
(for education furnished to the eligible student during any
academic period beginning in such taxable year) as does not
exceed $2,000, plus
``(B) 25 percent of such expenses so paid as exceeds $2,000
but does not exceed $4,000.
``(2) Credit allowed for first 4 years of post-secondary
education.--Subparagraphs (A) and (C) of subsection (b)(2) shall be
applied by substituting `4' for `2'.
``(3) Qualified tuition and related expenses to include
required course materials.--Subsection (f)(1)(A) shall be applied
by substituting `tuition, fees, and course materials' for `tuition
and fees'.
``(4) Increase in agi limits for hope scholarship credit.--In
lieu of applying subsection (d) with respect to the Hope
Scholarship Credit, such credit (determined without regard to this
paragraph) shall be reduced (but not below zero) by the amount
which bears the same ratio to such credit (as so determined) as--
``(A) the excess of--
``(i) the taxpayer's modified adjusted gross income (as
defined in subsection (d)(3)) for such taxable year, over
``(ii) $80,000 ($160,000 in the case of a joint
return), bears to
``(B) $10,000 ($20,000 in the case of a joint return).
``(5) Credit allowed against alternative minimum tax.--In the
case of a taxable year to which section 26(a)(2) does not apply, so
much of the credit allowed under subsection (a) as is attributable
to the Hope Scholarship Credit shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this subsection and sections 23, 25D, and 30D) and
section 27 for the taxable year.
Any reference in this section or section 24, 25, 26, 25B, 904, or
1400C to a credit allowable under this subsection shall be treated
as a reference to so much of the credit allowable under subsection
(a) as is attributable to the Hope Scholarship Credit.
``(6) Portion of credit made refundable.--40 percent of so much
of the credit allowed under subsection (a) as is attributable to
the Hope Scholarship Credit (determined after application of
paragraph (4) and without regard to this paragraph and section
26(a)(2) or paragraph (5), as the case may be) shall be treated as
a credit allowable under subpart C (and not allowed under
subsection (a)). The preceding sentence shall not apply to any
taxpayer for any taxable year if such taxpayer is a child to whom
subsection (g) of section 1 applies for such taxable year.
``(7) Coordination with midwestern disaster area benefits.--In
the case of a taxpayer with respect to whom section 702(a)(1)(B) of
the Heartland Disaster Tax Relief Act of 2008 applies for any
taxable year, such taxpayer may elect to waive the application of
this subsection to such taxpayer for such taxable year.''.
(b) Conforming Amendments.--
(1) Section 24(b)(3)(B) is amended by inserting ``25A(i),''
after ``23,''.
(2) Section 25(e)(1)(C)(ii) is amended by inserting ``25A(i),''
after ``24,''.
(3) Section 26(a)(1) is amended by inserting ``25A(i),'' after
``24,''.
(4) Section 25B(g)(2) is amended by inserting ``25A(i),'' after
``23,''.
(5) Section 904(i) is amended by inserting ``25A(i),'' after
``24,''.
(6) Section 1400C(d)(2) is amended by inserting ``25A(i),''
after ``24,''.
(7) Section 6211(b)(4)(A) is amended by inserting ``25A by
reason of subsection (i)(6) thereof,'' after ``24(d),''.
(8) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``25A,'' before ``35''.
(c) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possession.--The Secretary of the Treasury
shall pay to each possession of the United States with a mirror
code tax system amounts equal to the loss to that possession by
reason of the application of section 25A(i)(6) of the Internal
Revenue Code of 1986 (as added by this section) with respect to
taxable years beginning in 2009 and 2010. Such amounts shall be
determined by the Secretary of the Treasury based on
information provided by the government of the respective
possession.
(B) Other possessions.--The Secretary of the Treasury shall
pay to each possession of the United States which does not have
a mirror code tax system amounts estimated by the Secretary of
the Treasury as being equal to the aggregate benefits that
would have been provided to residents of such possession by
reason of the application of section 25A(i)(6) of such Code (as
so added) for taxable years beginning in 2009 and 2010 if a
mirror code tax system had been in effect in such possession.
The preceding sentence shall not apply with respect to any
possession of the United States unless such possession has a
plan, which has been approved by the Secretary of the Treasury,
under which such possession will promptly distribute such
payments to the residents of such possession.
(2) Coordination with credit allowed against united states
income taxes.--Section 25A(i)(6) of such Code (as added by this
section) shall not apply to a bona fide resident of any possession
of the United States.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes of this
subsection, the term ``possession of the United States''
includes the Commonwealth of Puerto Rico and the Commonwealth
of the Northern Mariana Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income tax
system of such possession if the income tax liability of the
residents of such possession under such system is determined by
reference to the income tax laws of the United States as if
such possession were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the payments under
this subsection shall be treated in the same manner as a refund
due from the credit allowed under section 25A of the Internal
Revenue Code of 1986 by reason of subsection (i)(6) of such
section (as added by this section).
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
(e) Application of EGTRRA Sunset.--The amendment made by subsection
(b)(1) shall be subject to title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 in the same manner as the provision
of such Act to which such amendment relates.
(f) Treasury Studies Regarding Education Incentives.--
(1) Study regarding coordination with non-tax student financial
assistance.--The Secretary of the Treasury and the Secretary of
Education, or their delegates, shall--
(A) study how to coordinate the credit allowed under
section 25A of the Internal Revenue Code of 1986 with the
Federal Pell Grant program under section 401 of the Higher
Education Act of 1965 to maximize their effectiveness at
promoting college affordability, and
(B) examine ways to expedite the delivery of the tax
credit.
(2) Study regarding inclusion of community service
requirements.--The Secretary of the Treasury and the Secretary of
Education, or their delegates, shall study the feasibility of
requiring including community service as a condition of taking
their tuition and related expenses into account under section 25A
of the Internal Revenue Code of 1986.
(3) Report.--Not later than 1 year after the date of the
enactment of this Act, the Secretary of the Treasury, or the
Secretary's delegate, shall report to Congress on the results of
the studies conducted under this paragraph.
SEC. 1005. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A QUALIFIED
HIGHER EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS IN 2009
AND 2010.
(a) In General.--Section 529(e)(3)(A) is amended by striking
``and'' at the end of clause (i), by striking the period at the end of
clause (ii), and by adding at the end the following:
``(iii) expenses paid or incurred in 2009 or 2010 for
the purchase of any computer technology or equipment (as
defined in section 170(e)(6)(F)(i)) or Internet access and
related services, if such technology, equipment, or
services are to be used by the beneficiary and the
beneficiary's family during any of the years the
beneficiary is enrolled at an eligible educational
institution.
Clause (iii) shall not include expenses for computer software
designed for sports, games, or hobbies unless the software is
predominantly educational in nature.''.
(b) Effective Date.--The amendments made by this section shall
apply to expenses paid or incurred after December 31, 2008.
SEC. 1006. EXTENSION OF AND INCREASE IN FIRST-TIME HOMEBUYER CREDIT;
WAIVER OF REQUIREMENT TO REPAY.
(a) Extension.--
(1) In general.--Section 36(h) is amended by striking ``July 1,
2009'' and inserting ``December 1, 2009''.
(2) Conforming amendment.--Section 36(g) is amended by striking
``July 1, 2009'' and inserting ``December 1, 2009''.
(b) Increase.--
(1) In general.--Section 36(b) is amended by striking
``$7,500'' each place it appears and inserting ``$8,000''.
(2) Conforming amendment.--Section 36(b)(1)(B) is amended by
striking ``$3,750'' and inserting ``$4,000''.
(c) Waiver of Recapture.--
(1) In general.--Paragraph (4) of section 36(f) is amended by
adding at the end the following new subparagraph:
``(D) Waiver of recapture for purchases in 2009.--In the
case of any credit allowed with respect to the purchase of a
principal residence after December 31, 2008, and before
December 1, 2009--
``(i) paragraph (1) shall not apply, and
``(ii) paragraph (2) shall apply only if the
disposition or cessation described in paragraph (2) with
respect to such residence occurs during the 36-month period
beginning on the date of the purchase of such residence by
the taxpayer.''.
(2) Conforming amendment.--Subsection (g) of section 36 is
amended by striking ``subsection (c)'' and inserting ``subsections
(c) and (f)(4)(D)''.
(d) Coordination With First-Time Homebuyer Credit for District of
Columbia.--
(1) In general.--Subsection (e) of section 1400C is amended by
adding at the end the following new paragraph:
``(4) Coordination with national first-time homebuyers
credit.--No credit shall be allowed under this section to any
taxpayer with respect to the purchase of a residence after December
31, 2008, and before December 1, 2009, if a credit under section 36
is allowable to such taxpayer (or the taxpayer's spouse) with
respect to such purchase.''.
(2) Conforming amendment.--Section 36(d) is amended by striking
paragraph (1).
(e) Removal of Prohibition on Financing by Mortgage Revenue
Bonds.--Section 36(d), as amended by subsection (c)(2), is amended by
striking paragraph (2) and by redesignating paragraphs (3) and (4) as
paragraphs (1) and (2), respectively.
(f) Effective Date.--The amendments made by this section shall
apply to residences purchased after December 31, 2008.
SEC. 1007. SUSPENSION OF TAX ON PORTION OF UNEMPLOYMENT COMPENSATION.
(a) In General.--Section 85 of the Internal Revenue Code of 1986
(relating to unemployment compensation) is amended by adding at the end
the following new subsection:
``(c) Special Rule for 2009.--In the case of any taxable year
beginning in 2009, gross income shall not include so much of the
unemployment compensation received by an individual as does not exceed
$2,400.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2008.
SEC. 1008. ADDITIONAL DEDUCTION FOR STATE SALES TAX AND EXCISE TAX ON
THE PURCHASE OF CERTAIN MOTOR VEHICLES.
(a) In General.--Subsection (a) of section 164 is amended by
inserting after paragraph (5) the following new paragraph:
``(6) Qualified motor vehicle taxes.''.
(b) Qualified Motor Vehicle Taxes.--Subsection (b) of section 164
is amended by adding at the end the following new paragraph:
``(6) Qualified motor vehicle taxes.--
``(A) In general.--For purposes of this section, the term
`qualified motor vehicle taxes' means any State or local sales
or excise tax imposed on the purchase of a qualified motor
vehicle.
``(B) Limitation based on vehicle price.--The amount of any
State or local sales or excise tax imposed on the purchase of a
qualified motor vehicle taken into account under subparagraph
(A) shall not exceed the portion of such tax attributable to so
much of the purchase price as does not exceed $49,500.
``(C) Income limitation.--The amount otherwise taken into
account under subparagraph (A) (after the application of
subparagraph (B)) for any taxable year shall be reduced (but
not below zero) by the amount which bears the same ratio to the
amount which is so treated as--
``(i) the excess (if any) of--
``(I) the taxpayer's modified adjusted gross income
for such taxable year, over
``(II) $125,000 ($250,000 in the case of a joint
return), bears to
``(ii) $10,000.
For purposes of the preceding sentence, the term `modified
adjusted gross income' means the adjusted gross income of the
taxpayer for the taxable year (determined without regard to
sections 911, 931, and 933).
``(D) Qualified motor vehicle.--For purposes of this
paragraph--
``(i) In general.--The term `qualified motor vehicle'
means--
``(I) a passenger automobile or light truck which
is treated as a motor vehicle for purposes of title II
of the Clean Air Act, the gross vehicle weight rating
of which is not more than 8,500 pounds, and the
original use of which commences with the taxpayer,
``(II) a motorcycle the gross vehicle weight rating
of which is not more than 8,500 pounds and the original
use of which commences with the taxpayer, and
``(III) a motor home the original use of which
commences with the taxpayer.
``(ii) Other terms.--The terms `motorcycle' and `motor
home' have the meanings given such terms under section
571.3 of title 49, Code of Federal Regulations (as in
effect on the date of the enactment of this paragraph).
``(E) Qualified motor vehicle taxes not included in cost of
acquired property.--The last sentence of subsection (a) shall
not apply to any qualified motor vehicle taxes.
``(F) Coordination with general sales tax.--This paragraph
shall not apply in the case of a taxpayer who makes an election
under paragraph (5) for the taxable year.
``(G) Termination.--This paragraph shall not apply to
purchases after December 31, 2009.''.
(c) Deduction Allowed to Nonitemizers.--
(1) In general.--Paragraph (1) of section 63(c) is amended by
striking ``and'' at the end of subparagraph (C), by striking the
period at the end of subparagraph (D) and inserting ``, and'', and
by adding at the end the following new subparagraph:
``(E) the motor vehicle sales tax deduction.''.
(2) Definition.--Section 63(c) is amended by adding at the end
the following new paragraph:
``(9) Motor vehicle sales tax deduction.--For purposes of
paragraph (1), the term `motor vehicle sales tax deduction' means
the amount allowable as a deduction under section 164(a)(6). Such
term shall not include any amount taken into account under section
62(a).''.
(d) Treatment of Deduction Under Alternative Minimum Tax.--The last
sentence of section 56(b)(1)(E) is amended by striking ``section
63(c)(1)(D)'' and inserting ``subparagraphs (D) and (E) of section
63(c)(1)''.
(e) Effective Date.--The amendments made by this section shall
apply to purchases on or after the date of the enactment of this Act in
taxable years ending after such date.
PART II--ALTERNATIVE MINIMUM TAX RELIEF
SEC. 1011. EXTENSION OF ALTERNATIVE MINIMUM TAX RELIEF FOR
NONREFUNDABLE PERSONAL CREDITS.
(a) In General.--Paragraph (2) of section 26(a) (relating to
special rule for taxable years 2000 through 2008) is amended--
(1) by striking ``or 2008'' and inserting ``2008, or 2009'',
and
(2) by striking ``2008'' in the heading thereof and inserting
``2009''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 1012. EXTENSION OF INCREASED ALTERNATIVE MINIMUM TAX EXEMPTION
AMOUNT.
(a) In General.--Paragraph (1) of section 55(d) (relating to
exemption amount) is amended--
(1) by striking ``($69,950 in the case of taxable years
beginning in 2008)'' in subparagraph (A) and inserting ``($70,950
in the case of taxable years beginning in 2009)'', and
(2) by striking ``($46,200 in the case of taxable years
beginning in 2008)'' in subparagraph (B) and inserting ``($46,700
in the case of taxable years beginning in 2009)''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
Subtitle B--Energy Incentives
PART I--RENEWABLE ENERGY INCENTIVES
SEC. 1101. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN
RENEWABLE RESOURCES.
(a) In General.--Subsection (d) of section 45 is amended--
(1) by striking ``2010'' in paragraph (1) and inserting
``2013'',
(2) by striking ``2011'' each place it appears in paragraphs
(2), (3), (4), (6), (7) and (9) and inserting ``2014'', and
(3) by striking ``2012'' in paragraph (11)(B) and inserting
``2014''.
(b) Technical Amendment.--Paragraph (5) of section 45(d) is amended
by striking ``and before'' and all that follows and inserting `` and
before October 3, 2008.''.
(c) Effective Date.--
(1) In general.--The amendments made by subsection (a) shall
apply to property placed in service after the date of the enactment
of this Act.
(2) Technical amendment.--The amendment made by subsection (b)
shall take effect as if included in section 102 of the Energy
Improvement and Extension Act of 2008.
SEC. 1102. ELECTION OF INVESTMENT CREDIT IN LIEU OF PRODUCTION CREDIT.
(a) In General.--Subsection (a) of section 48 is amended by adding
at the end the following new paragraph:
``(5) Election to treat qualified facilities as energy
property.--
``(A) In general.--In the case of any qualified property
which is part of a qualified investment credit facility--
``(i) such property shall be treated as energy property
for purposes of this section, and
``(ii) the energy percentage with respect to such
property shall be 30 percent.
``(B) Denial of production credit.--No credit shall be
allowed under section 45 for any taxable year with respect to
any qualified investment credit facility.
``(C) Qualified investment credit facility.--For purposes
of this paragraph, the term `qualified investment credit
facility' means any of the following facilities if no credit
has been allowed under section 45 with respect to such facility
and the taxpayer makes an irrevocable election to have this
paragraph apply to such facility:
``(i) Wind facilities.--Any qualified facility (within
the meaning of section 45) described in paragraph (1) of
section 45(d) if such facility is placed in service in
2009, 2010, 2011, or 2012.
``(ii) Other facilities.--Any qualified facility
(within the meaning of section 45) described in paragraph
(2), (3), (4), (6), (7), (9), or (11) of section 45(d) if
such facility is placed in service in 2009, 2010, 2011,
2012, or 2013.
``(D) Qualified property.--For purposes of this paragraph,
the term `qualified property' means property--
``(i) which is--
``(I) tangible personal property, or
``(II) other tangible property (not including a
building or its structural components), but only if
such property is used as an integral part of the
qualified investment credit facility, and
``(ii) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable.''.
(b) Effective Date.--The amendments made by this section shall
apply to facilities placed in service after December 31, 2008.
SEC. 1103. REPEAL OF CERTAIN LIMITATIONS ON CREDIT FOR RENEWABLE ENERGY
PROPERTY.
(a) Repeal of Limitation on Credit for Qualified Small Wind Energy
Property.--Paragraph (4) of section 48(c) is amended by striking
subparagraph (B) and by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C).
(b) Repeal of Limitation on Property Financed by Subsidized Energy
Financing.--
(1) In general.--Section 48(a)(4) is amended by adding at the
end the following new subparagraph:
``(D) Termination.--This paragraph shall not apply to
periods after December 31, 2008, under rules similar to the
rules of section 48(m) (as in effect on the day before the date
of the enactment of the Revenue Reconciliation Act of 1990).''.
(2) Conforming amendments.--
(A) Section 25C(e)(1) is amended by striking ``(8), and
(9)'' and inserting ``and (8)''.
(B) Section 25D(e) is amended by striking paragraph (9).
(C) Section 48A(b)(2) is amended by inserting ``(without
regard to subparagraph (D) thereof)'' after ``section
48(a)(4)''.
(D) Section 48B(b)(2) is amended by inserting ``(without
regard to subparagraph (D) thereof)'' after ``section
48(a)(4)''.
(c) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendment made by this section shall apply to periods after
December 31, 2008, under rules similar to the rules of section
48(m) of the Internal Revenue Code of 1986 (as in effect on the day
before the date of the enactment of the Revenue Reconciliation Act
of 1990).
(2) Conforming amendments.--The amendments made by
subparagraphs (A) and (B) of subsection (b)(2) shall apply to
taxable years beginning after December 31, 2008.
SEC. 1104. COORDINATION WITH RENEWABLE ENERGY GRANTS.
Section 48 is amended by adding at the end the following new
subsection:
``(d) Coordination With Department of Treasury Grants.--In the case
of any property with respect to which the Secretary makes a grant under
section 1603 of the American Recovery and Reinvestment Tax Act of
2009--
``(1) Denial of production and investment credits.--No credit
shall be determined under this section or section 45 with respect
to such property for the taxable year in which such grant is made
or any subsequent taxable year.
``(2) Recapture of credits for progress expenditures made
before grant.--If a credit was determined under this section with
respect to such property for any taxable year ending before such
grant is made--
``(A) the tax imposed under subtitle A on the taxpayer for
the taxable year in which such grant is made shall be increased
by so much of such credit as was allowed under section 38,
``(B) the general business carryforwards under section 39
shall be adjusted so as to recapture the portion of such credit
which was not so allowed, and
``(C) the amount of such grant shall be determined without
regard to any reduction in the basis of such property by reason
of such credit.
``(3) Treatment of grants.--Any such grant shall--
``(A) not be includible in the gross income of the
taxpayer, but
``(B) shall be taken into account in determining the basis
of the property to which such grant relates, except that the
basis of such property shall be reduced under section 50(c) in
the same manner as a credit allowed under subsection (a).''.
PART II--INCREASED ALLOCATIONS OF NEW CLEAN RENEWABLE ENERGY BONDS AND
QUALIFIED ENERGY CONSERVATION BONDS
SEC. 1111. INCREASED LIMITATION ON ISSUANCE OF NEW CLEAN RENEWABLE
ENERGY BONDS.
Subsection (c) of section 54C is amended by adding at the end the
following new paragraph:
``(4) Additional limitation.--The national new clean renewable
energy bond limitation shall be increased by $1,600,000,000. Such
increase shall be allocated by the Secretary consistent with the
rules of paragraphs (2) and (3).''.
SEC. 1112. INCREASED LIMITATION ON ISSUANCE OF QUALIFIED ENERGY
CONSERVATION BONDS.
(a) In General.--Section 54D(d) is amended by striking
``$800,000,000'' and inserting ``$3,200,000,000''.
(b) Clarification With Respect to Green Community Programs.--
(1) In general.--Clause (ii) of section 54D(f)(1)(A) is amended
by inserting ``(including the use of loans, grants, or other
repayment mechanisms to implement such programs)'' after ``green
community programs''.
(2) Special rules for bonds for implementing green community
programs.--Subsection (e) of section 54D is amended by adding at
the end the following new paragraph:
``(4) Special rules for bonds to implement green community
programs.--In the case of any bond issued for the purpose of
providing loans, grants, or other repayment mechanisms for capital
expenditures to implement green community programs, such bond shall
not be treated as a private activity bond for purposes of paragraph
(3).''.
PART III--ENERGY CONSERVATION INCENTIVES
SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY
PROPERTY.
(a) In General.--Section 25C is amended by striking subsections (a)
and (b) and inserting the following new subsections:
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to 30 percent of the sum of--
``(1) the amount paid or incurred by the taxpayer during such
taxable year for qualified energy efficiency improvements, and
``(2) the amount of the residential energy property
expenditures paid or incurred by the taxpayer during such taxable
year.
``(b) Limitation.--The aggregate amount of the credits allowed
under this section for taxable years beginning in 2009 and 2010 with
respect to any taxpayer shall not exceed $1,500.''.
(b) Modifications of Standards for Energy-Efficient Building
Property.--
(1) Electric heat pumps.--Subparagraph (B) of section 25C(d)(3)
is amended to read as follows:
``(B) an electric heat pump which achieves the highest
efficiency tier established by the Consortium for Energy
Efficiency, as in effect on January 1, 2009.''.
(2) Central air conditioners.--Subparagraph (C) of section
25C(d)(3) is amended by striking ``2006'' and inserting ``2009''.
(3) Water heaters.--Subparagraph (D) of section 25C(d)(3) is
amended to read as follows:
``(D) a natural gas, propane, or oil water heater which has
either an energy factor of at least 0.82 or a thermal
efficiency of at least 90 percent.''.
(4) Wood stoves.--Subparagraph (E) of section 25C(d)(3) is
amended by inserting ``, as measured using a lower heating value''
after ``75 percent''.
(c) Modifications of Standards for Oil Furnaces and Hot Water
Boilers.--
(1) In general.--Paragraph (4) of section 25C(d) is amended to
read as follows:
``(4) Qualified natural gas, propane, and oil furnaces and hot
water boilers.--
``(A) Qualified natural gas furnace.--The term `qualified
natural gas furnace' means any natural gas furnace which
achieves an annual fuel utilization efficiency rate of not less
than 95.
``(B) Qualified natural gas hot water boiler.--The term
`qualified natural gas hot water boiler' means any natural gas
hot water boiler which achieves an annual fuel utilization
efficiency rate of not less than 90.
``(C) Qualified propane furnace.--The term `qualified
propane furnace' means any propane furnace which achieves an
annual fuel utilization efficiency rate of not less than 95.
``(D) Qualified propane hot water boiler.--The term
`qualified propane hot water boiler' means any propane hot
water boiler which achieves an annual fuel utilization
efficiency rate of not less than 90.
``(E) Qualified oil furnaces.--The term `qualified oil
furnace' means any oil furnace which achieves an annual fuel
utilization efficiency rate of not less than 90.
``(F) Qualified oil hot water boiler.--The term `qualified
oil hot water boiler' means any oil hot water boiler which
achieves an annual fuel utilization efficiency rate of not less
than 90.''.
(2) Conforming amendment.--Clause (ii) of section 25C(d)(2)(A)
is amended to read as follows:
``(ii) any qualified natural gas furnace, qualified
propane furnace, qualified oil furnace, qualified natural
gas hot water boiler, qualified propane hot water boiler,
or qualified oil hot water boiler, or''.
(d) Modifications of Standards for Qualified Energy Efficiency
Improvements.--
(1) Qualifications for exterior windows, doors, and
skylights.--Subsection (c) of section 25C is amended by adding at
the end the following new paragraph:
``(4) Qualifications for exterior windows, doors, and
skylights.--Such term shall not include any component described in
subparagraph (B) or (C) of paragraph (2) unless such component is
equal to or below a U factor of 0.30 and SHGC of 0.30.''.
(2) Additional qualification for insulation.--Subparagraph (A)
of section 25C(c)(2) is amended by inserting ``and meets the
prescriptive criteria for such material or system established by
the 2009 International Energy Conservation Code, as such Code
(including supplements) is in effect on the date of the enactment
of the American Recovery and Reinvestment Tax Act of 2009'' after
``such dwelling unit''.
(e) Extension.--Section 25C(g)(2) is amended by striking ``December
31, 2009'' and inserting ``December 31, 2010''.
(f) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2008.
(2) Efficiency standards.--The amendments made by paragraphs
(1), (2), and (3) of subsection (b) and subsections (c) and (d)
shall apply to property placed in service after the date of the
enactment of this Act.
SEC. 1122. MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT
PROPERTY.
(a) Removal of Credit Limitation for Property Placed in Service.--
(1) In general.--Paragraph (1) of section 25D(b) is amended to
read as follows:
``(1) Maximum credit for fuel cells.--In the case of any
qualified fuel cell property expenditure, the credit allowed under
subsection (a) (determined without regard to subsection (c)) for
any taxable year shall not exceed $500 with respect to each half
kilowatt of capacity of the qualified fuel cell property (as
defined in section 48(c)(1)) to which such expenditure relates.''.
(2) Conforming amendment.--Paragraph (4) of section 25D(e) is
amended--
(A) by striking all that precedes subparagraph (B) and
inserting the following:
``(4) Fuel cell expenditure limitations in case of joint
occupancy.--In the case of any dwelling unit with respect to which
qualified fuel cell property expenditures are made and which is
jointly occupied and used during any calendar year as a residence
by two or more individuals, the following rules shall apply:
``(A) Maximum expenditures for fuel cells.--The maximum
amount of such expenditures which may be taken into account
under subsection (a) by all such individuals with respect to
such dwelling unit during such calendar year shall be $1,667 in
the case of each half kilowatt of capacity of qualified fuel
cell property (as defined in section 48(c)(1)) with respect to
which such expenditures relate.'', and
(B) by striking subparagraph (C).
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 1123. TEMPORARY INCREASE IN CREDIT FOR ALTERNATIVE FUEL VEHICLE
REFUELING PROPERTY.
(a) In General.--Section 30C(e) is amended by adding at the end the
following new paragraph:
``(6) Special rule for property placed in service during 2009
and 2010.--In the case of property placed in service in taxable
years beginning after December 31, 2008, and before January 1,
2011--
``(A) in the case of any such property which does not
relate to hydrogen--
``(i) subsection (a) shall be applied by substituting
`50 percent' for `30 percent',
``(ii) subsection (b)(1) shall be applied by
substituting `$50,000' for `$30,000', and
``(iii) subsection (b)(2) shall be applied by
substituting `$2,000' for `$1,000', and
``(B) in the case of any such property which relates to
hydrogen, subsection (b)(1) shall be applied by substituting
`$200,000' for `$30,000'.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2008.
PART IV--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION
SEC. 1131. APPLICATION OF MONITORING REQUIREMENTS TO CARBON DIOXIDE
USED AS A TERTIARY INJECTANT.
(a) In General.--Section 45Q(a)(2) is amended by striking ``and''
at the end of subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting ``, and'', and by adding at the end the
following new subparagraph:
``(C) disposed of by the taxpayer in secure geological
storage.''.
(b) Conforming Amendments.--
(1) Section 45Q(d)(2) is amended--
(A) by striking ``subsection (a)(1)(B)'' and inserting
``paragraph (1)(B) or (2)(C) of subsection (a)'',
(B) by striking ``and unminable coal seems'' and inserting
``, oil and gas reservoirs, and unminable coal seams'', and
(C) by inserting ``the Secretary of Energy, and the
Secretary of the Interior,'' after ``Environmental Protection
Agency''.
(2) Section 45Q(a)(1)(B) is amended by inserting ``and not used
by the taxpayer as described in paragraph (2)(B)'' after
``storage''.
(3) Section 45Q(e) is amended by striking ``captured and
disposed of or used as a tertiary injectant'' and inserting ``taken
into account in accordance with subsection (a)''.
(c) Effective Date.--The amendments made by this section shall
apply to carbon dioxide captured after the date of the enactment of
this Act.
PART V--PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES
SEC. 1141. CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR
VEHICLES.
(a) In General.--Section 30D is amended to read as follows:
``SEC. 30D. NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the sum of the credit amounts determined under subsection (b)
with respect to each new qualified plug-in electric drive motor vehicle
placed in service by the taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this subsection
with respect to any new qualified plug-in electric drive motor
vehicle is the sum of the amounts determined under paragraphs (2)
and (3) with respect to such vehicle.
``(2) Base amount.--The amount determined under this paragraph
is $2,500.
``(3) Battery capacity.--In the case of a vehicle which draws
propulsion energy from a battery with not less than 5 kilowatt
hours of capacity, the amount determined under this paragraph is
$417, plus $417 for each kilowatt hour of capacity in excess of 5
kilowatt hours. The amount determined under this paragraph shall
not exceed $5,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard to
this subsection) that is attributable to property of a character
subject to an allowance for depreciation shall be treated as a
credit listed in section 38(b) for such taxable year (and not
allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the credit
allowed under subsection (a) for any taxable year (determined
after application of paragraph (1)) shall be treated as a
credit allowable under subpart A for such taxable year.
``(B) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall not
exceed the excess of--
``(i) the sum of the regular tax liability (as defined
in section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under subpart A
(other than this section and sections 23 and 25D) and
section 27 for the taxable year.
``(d) New Qualified Plug-in Electric Drive Motor Vehicle.--For
purposes of this section--
``(1) In general.--The term `new qualified plug-in electric
drive motor vehicle' means a motor vehicle--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the taxpayer
and not for resale,
``(C) which is made by a manufacturer,
``(D) which is treated as a motor vehicle for purposes of
title II of the Clean Air Act,
``(E) which has a gross vehicle weight rating of less than
14,000 pounds, and
``(F) which is propelled to a significant extent by an
electric motor which draws electricity from a battery which--
``(i) has a capacity of not less than 4 kilowatt hours,
and
``(ii) is capable of being recharged from an external
source of electricity.
``(2) Motor vehicle.--The term `motor vehicle' means any
vehicle which is manufactured primarily for use on public streets,
roads, and highways (not including a vehicle operated exclusively
on a rail or rails) and which has at least 4 wheels.
``(3) Manufacturer.--The term `manufacturer' has the meaning
given such term in regulations prescribed by the Administrator of
the Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C. 7521 et
seq.).
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours, as
measured from a 100 percent state of charge to a 0 percent state of
charge.
``(e) Limitation on Number of New Qualified Plug-in Electric Drive
Motor Vehicles Eligible for Credit.--
``(1) In general.--In the case of a new qualified plug-in
electric drive motor vehicle sold during the phaseout period, only
the applicable percentage of the credit otherwise allowable under
subsection (a) shall be allowed.
``(2) Phaseout period.--For purposes of this subsection, the
phaseout period is the period beginning with the second calendar
quarter following the calendar quarter which includes the first
date on which the number of new qualified plug-in electric drive
motor vehicles manufactured by the manufacturer of the vehicle
referred to in paragraph (1) sold for use in the United States
after December 31, 2009, is at least 200,000.
``(3) Applicable percentage.--For purposes of paragraph (1),
the applicable percentage is--
``(A) 50 percent for the first 2 calendar quarters of the
phaseout period,
``(B) 25 percent for the 3d and 4th calendar quarters of
the phaseout period, and
``(C) 0 percent for each calendar quarter thereafter.
``(4) Controlled groups.--Rules similar to the rules of section
30B(f)(4) shall apply for purposes of this subsection.
``(f) Special Rules.--
``(1) Basis reduction.--For purposes of this subtitle, the
basis of any property for which a credit is allowable under
subsection (a) shall be reduced by the amount of such credit so
allowed.
``(2) No double benefit.--The amount of any deduction or other
credit allowable under this chapter for a new qualified plug-in
electric drive motor vehicle shall be reduced by the amount of
credit allowed under subsection (a) for such vehicle.
``(3) Property used by tax-exempt entity.--In the case of a
vehicle the use of which is described in paragraph (3) or (4) of
section 50(b) and which is not subject to a lease, the person who
sold such vehicle to the person or entity using such vehicle shall
be treated as the taxpayer that placed such vehicle in service, but
only if such person clearly discloses to such person or entity in a
document the amount of any credit allowable under subsection (a)
with respect to such vehicle (determined without regard to
subsection (c)).
``(4) Property used outside united states not qualified.--No
credit shall be allowable under subsection (a) with respect to any
property referred to in section 50(b)(1).
``(5) Recapture.--The Secretary shall, by regulations, provide
for recapturing the benefit of any credit allowable under
subsection (a) with respect to any property which ceases to be
property eligible for such credit.
``(6) Election not to take credit.--No credit shall be allowed
under subsection (a) for any vehicle if the taxpayer elects to not
have this section apply to such vehicle.
``(7) Interaction with air quality and motor vehicle safety
standards.--A motor vehicle shall not be considered eligible for a
credit under this section unless such vehicle is in compliance
with--
``(A) the applicable provisions of the Clean Air Act for
the applicable make and model year of the vehicle (or
applicable air quality provisions of State law in the case of a
State which has adopted such provision under a waiver under
section 209(b) of the Clean Air Act), and
``(B) the motor vehicle safety provisions of sections 30101
through 30169 of title 49, United States Code.''.
(b) Conforming Amendments.--
(1) Section 30B(d)(3)(D) is amended by striking ``subsection
(d) thereof'' and inserting ``subsection (c) thereof''.
(2) Section 38(b)(35) is amended by striking ``30D(d)(1)'' and
inserting ``30D(c)(1)''.
(3) Section 1016(a)(25) is amended by striking ``section
30D(e)(4)'' and inserting ``section 30D(f)(1)''.
(4) Section 6501(m) is amended by striking ``section
30D(e)(9)'' and inserting ``section 30D(e)(4)''.
(c) Effective Date.--The amendments made by this section shall
apply to vehicles acquired after December 31, 2009.
SEC. 1142. CREDIT FOR CERTAIN PLUG-IN ELECTRIC VEHICLES.
(a) In General.--Section 30 is amended to read as follows:
``SEC. 30. CERTAIN PLUG-IN ELECTRIC VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to 10 percent of the cost of any qualified plug-in electric
vehicle placed in service by the taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--The amount of the credit
allowed under subsection (a) with respect to any vehicle shall not
exceed $2,500.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard to
this subsection) that is attributable to property of a character
subject to an allowance for depreciation shall be treated as a
credit listed in section 38(b) for such taxable year (and not
allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the credit
allowed under subsection (a) for any taxable year (determined
after application of paragraph (1)) shall be treated as a
credit allowable under subpart A for such taxable year.
``(B) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall not
exceed the excess of--
``(i) the sum of the regular tax liability (as defined
in section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under subpart A
(other than this section and sections 23, 25D, and 30D) and
section 27 for the taxable year.
``(d) Qualified Plug-in Electric Vehicle.--For purposes of this
section--
``(1) In general.--The term `qualified plug-in electric
vehicle' means a specified vehicle--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the taxpayer
and not for resale,
``(C) which is made by a manufacturer,
``(D) which is manufactured primarily for use on public
streets, roads, and highways,
``(E) which has a gross vehicle weight rating of less than
14,000 pounds, and
``(F) which is propelled to a significant extent by an
electric motor which draws electricity from a battery which--
``(i) has a capacity of not less than 4 kilowatt hours
(2.5 kilowatt hours in the case of a vehicle with 2 or 3
wheels), and
``(ii) is capable of being recharged from an external
source of electricity.
``(2) Specified vehicle.--The term `specified vehicle' means
any vehicle which--
``(A) is a low speed vehicle within the meaning of section
571.3 of title 49, Code of Federal Regulations (as in effect on
the date of the enactment of the American Recovery and
Reinvestment Tax Act of 2009), or
``(B) has 2 or 3 wheels.
``(3) Manufacturer.--The term `manufacturer' has the meaning
given such term in regulations prescribed by the Administrator of
the Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C. 7521 et
seq.).
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours, as
measured from a 100 percent state of charge to a 0 percent state of
charge.
``(e) Special Rules.--
``(1) Basis reduction.--For purposes of this subtitle, the
basis of any property for which a credit is allowable under
subsection (a) shall be reduced by the amount of such credit so
allowed.
``(2) No double benefit.--The amount of any deduction or other
credit allowable under this chapter for a new qualified plug-in
electric drive motor vehicle shall be reduced by the amount of
credit allowable under subsection (a) for such vehicle.
``(3) Property used by tax-exempt entity.--In the case of a
vehicle the use of which is described in paragraph (3) or (4) of
section 50(b) and which is not subject to a lease, the person who
sold such vehicle to the person or entity using such vehicle shall
be treated as the taxpayer that placed such vehicle in service, but
only if such person clearly discloses to such person or entity in a
document the amount of any credit allowable under subsection (a)
with respect to such vehicle (determined without regard to
subsection (c)).
``(4) Property used outside united states not qualified.--No
credit shall be allowable under subsection (a) with respect to any
property referred to in section 50(b)(1).
``(5) Recapture.--The Secretary shall, by regulations, provide
for recapturing the benefit of any credit allowable under
subsection (a) with respect to any property which ceases to be
property eligible for such credit.
``(6) Election not to take credit.--No credit shall be allowed
under subsection (a) for any vehicle if the taxpayer elects to not
have this section apply to such vehicle.
``(f) Termination.--This section shall not apply to any vehicle
acquired after December 31, 2011.''.
(b) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B) is amended by inserting ``30,''
after ``25D,''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting ``30,''
after ``25D,''.
(C) Section 25B(g)(2) is amended by inserting ``30,'' after
``25D,''.
(D) Section 26(a)(1) is amended by inserting ``30,'' after
``25D,''.
(E) Section 904(i) is amended by striking ``and 25B'' and
inserting ``25B, 30, and 30D''.
(F) Section 1400C(d)(2) is amended by striking ``and 25D'' and
inserting ``25D, and 30''.
(2) Paragraph (1) of section 30B(h) is amended to read as
follows:
``(1) Motor vehicle.--The term `motor vehicle' means any
vehicle which is manufactured primarily for use on public streets,
roads, and highways (not including a vehicle operated exclusively
on a rail or rails) and which has at least 4 wheels.''.
(3) Section 30C(d)(2)(A) is amended by striking ``, 30,''.
(4)(A) Section 53(d)(1)(B) is amended by striking clause (iii)
and redesignating clause (iv) as clause (iii).
(B) Subclause (II) of section 53(d)(1)(B)(iii), as so
redesignated, is amended by striking ``increased in the manner
provided in clause (iii)''.
(5) Section 55(c)(3) is amended by striking ``30(b)(3),''.
(6) Section 1016(a)(25) is amended by striking ``section
30(d)(1)'' and inserting ``section 30(e)(1)''.
(7) Section 6501(m) is amended by striking ``section 30(d)(4)''
and inserting ``section 30(e)(6)''.
(8) The item in the table of sections for subpart B of part IV
of subchapter A of chapter 1 is amended to read as follows:
``Sec. 30. Certain plug-in electric vehicles.''.
(c) Effective Date.--The amendments made by this section shall
apply to vehicles acquired after the date of the enactment of this Act.
(d) Transitional Rule.--In the case of a vehicle acquired after the
date of the enactment of this Act and before January 1, 2010, no credit
shall be allowed under section 30 of the Internal Revenue Code of 1986,
as added by this section, if credit is allowable under section 30D of
such Code with respect to such vehicle.
(e) Application of EGTRRA Sunset.--The amendment made by subsection
(b)(1)(A) shall be subject to title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 in the same manner as the provision
of such Act to which such amendment relates.
SEC. 1143. CONVERSION KITS.
(a) In General.--Section 30B (relating to alternative motor vehicle
credit) is amended by redesignating subsections (i) and (j) as
subsections (j) and (k), respectively, and by inserting after
subsection (h) the following new subsection:
``(i) Plug-in Conversion Credit.--
``(1) In general.--For purposes of subsection (a), the plug-in
conversion credit determined under this subsection with respect to
any motor vehicle which is converted to a qualified plug-in
electric drive motor vehicle is 10 percent of so much of the cost
of the converting such vehicle as does not exceed $40,000.
``(2) Qualified plug-in electric drive motor vehicle.--For
purposes of this subsection, the term `qualified plug-in electric
drive motor vehicle' means any new qualified plug-in electric drive
motor vehicle (as defined in section 30D, determined without regard
to whether such vehicle is made by a manufacturer or whether the
original use of such vehicle commences with the taxpayer).
``(3) Credit allowed in addition to other credits.--The credit
allowed under this subsection shall be allowed with respect to a
motor vehicle notwithstanding whether a credit has been allowed
with respect to such motor vehicle under this section (other than
this subsection) in any preceding taxable year.
``(4) Termination.--This subsection shall not apply to
conversions made after December 31, 2011.''.
(b) Credit Treated as Part of Alternative Motor Vehicle Credit.--
Section 30B(a) is amended by striking ``and'' at the end of paragraph
(3), by striking the period at the end of paragraph (4) and inserting
``, and'', and by adding at the end the following new paragraph:
``(5) the plug-in conversion credit determined under subsection
(i).''.
(c) No Recapture for Vehicles Converted to Qualified Plug-in
Electric Drive Motor Vehicles.--Paragraph (8) of section 30B(h) is
amended by adding at the end the following: ``, except that no benefit
shall be recaptured if such property ceases to be eligible for such
credit by reason of conversion to a qualified plug-in electric drive
motor vehicle.''.
(d) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 1144. TREATMENT OF ALTERNATIVE MOTOR VEHICLE CREDIT AS A PERSONAL
CREDIT ALLOWED AGAINST AMT.
(a) In General.--Paragraph (2) of section 30B(g) is amended to read
as follows:
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the credit
allowed under subsection (a) for any taxable year (determined
after application of paragraph (1)) shall be treated as a
credit allowable under subpart A for such taxable year.
``(B) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall not
exceed the excess of--
``(i) the sum of the regular tax liability (as defined
in section 26(b)) plus the tax imposed by section 55, over
``(ii) the sum of the credits allowable under subpart A
(other than this section and sections 23, 25D, 30, and 30D)
and section 27 for the taxable year.''.
(b) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by this Act, is amended
by inserting ``30B,'' after ``30,''.
(B) Section 25(e)(1)(C)(ii), as amended by this Act, is amended
by inserting ``30B,'' after ``30,''.
(C) Section 25B(g)(2), as amended by this Act, is amended by
inserting ``30B,'' after ``30,''.
(D) Section 26(a)(1), as amended by this Act, is amended by
inserting ``30B,'' after ``30,''.
(E) Section 904(i), as amended by this Act, is amended by
inserting ``30B,'' after ``30''.
(F) Section 1400C(d)(2), as amended by this Act, is amended by
striking ``and 30'' and inserting ``30, and 30B''.
(2) Section 30C(d)(2)(A), as amended by this Act, is amended by
striking ``sections 27 and 30B'' and inserting ``section 27''.
(3) Section 55(c)(3) is amended by striking ``30B(g)(2),''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
(d) Application of EGTRRA Sunset.--The amendment made by subsection
(b)(1)(A) shall be subject to title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 in the same manner as the provision
of such Act to which such amendment relates.
PART VI--PARITY FOR TRANSPORTATION FRINGE BENEFITS
SEC. 1151. INCREASED EXCLUSION AMOUNT FOR COMMUTER TRANSIT BENEFITS AND
TRANSIT PASSES.
(a) In General.--Paragraph (2) of section 132(f) is amended by
adding at the end the following flush sentence:
``In the case of any month beginning on or after the date of the
enactment of this sentence and before January 1, 2011, subparagraph
(A) shall be applied as if the dollar amount therein were the same
as the dollar amount in effect for such month under subparagraph
(B).''.
(b) Effective Date.--The amendment made by this section shall apply
to months beginning on or after the date of the enactment of this
section.
Subtitle C--Tax Incentives for Business
PART I--TEMPORARY INVESTMENT INCENTIVES
SEC. 1201. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY ACQUIRED DURING 2009.
(a) Extension of Special Allowance.--
(1) In general.--Paragraph (2) of section 168(k) is amended--
(A) by striking ``January 1, 2010'' and inserting ``January
1, 2011'', and
(B) by striking ``January 1, 2009'' each place it appears
and inserting ``January 1, 2010''.
(2) Conforming amendments.--
(A) The heading for subsection (k) of section 168 is
amended by striking ``January 1, 2009'' and inserting ``January
1, 2010''.
(B) The heading for clause (ii) of section 168(k)(2)(B) is
amended by striking ``pre-january 1, 2009'' and inserting
``pre-january 1, 2010''.
(C) Subparagraph (B) of section 168(l)(5) is amended by
striking ``January 1, 2009'' and inserting ``January 1, 2010''.
(D) Subparagraph (C) of section 168(n)(2) is amended by
striking ``January 1, 2009'' and inserting ``January 1, 2010''.
(E) Subparagraph (B) of section 1400N(d)(3) is amended by
striking ``January 1, 2009'' and inserting ``January 1, 2010''.
(3) Technical amendments.--
(A) Subparagraph (D) of section 168(k)(4) is amended--
(i) by striking ``and'' at the end of clause (i),
(ii) by redesignating clause (ii) as clause (iii), and
(iii) by inserting after clause (i) the following new
clause:
``(ii) `April 1, 2008' shall be substituted for
`January 1, 2008' in subparagraph (A)(iii)(I) thereof,
and''.
(B) Subparagraph (A) of section 6211(b)(4) is amended by
inserting ``168(k)(4),'' after ``53(e),''.
(b) Extension of Election to Accelerate the Amt and Research
Credits in Lieu of Bonus Depreciation.--
(1) In general.--Section 168(k)(4) (relating to election to
accelerate the AMT and research credits in lieu of bonus
depreciation) is amended--
(A) by striking ``2009'' and inserting ``2010''in
subparagraph (D)(iii) (as redesignated by subsection (a)(3)),
and
(B) by adding at the end the following new subparagraph:
``(H) Special rules for extension property.--
``(i) Taxpayers previously electing acceleration.--In
the case of a taxpayer who made the election under
subparagraph (A) for its first taxable year ending after
March 31, 2008--
``(I) the taxpayer may elect not to have this
paragraph apply to extension property, but
``(II) if the taxpayer does not make the election
under subclause (I), in applying this paragraph to the
taxpayer a separate bonus depreciation amount, maximum
amount, and maximum increase amount shall be computed
and applied to eligible qualified property which is
extension property and to eligible qualified property
which is not extension property.
``(ii) Taxpayers not previously electing
acceleration.--In the case of a taxpayer who did not make
the election under subparagraph (A) for its first taxable
year ending after March 31, 2008--
``(I) the taxpayer may elect to have this paragraph
apply to its first taxable year ending after December
31, 2008, and each subsequent taxable year, and
``(II) if the taxpayer makes the election under
subclause (I), this paragraph shall only apply to
eligible qualified property which is extension
property.
``(iii) Extension property.--For purposes of this
subparagraph, the term `extension property' means property
which is eligible qualified property solely by reason of
the extension of the application of the special allowance
under paragraph (1) pursuant to the amendments made by
section 1201(a) of the American Recovery and Reinvestment
Tax Act of 2009 (and the application of such extension to
this paragraph pursuant to the amendment made by section
1201(b)(1) of such Act).''.
(2) Technical amendment.--Section 6211(b)(4)(A) is amended by
inserting ``168(k)(4),'' after ``53(e),''.
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property placed in
service after December 31, 2008, in taxable years ending after such
date.
(2) Technical amendments.--The amendments made by subsections
(a)(3) and (b)(2) shall apply to taxable years ending after March
31, 2008.
SEC. 1202. TEMPORARY INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN
DEPRECIABLE BUSINESS ASSETS.
(a) In General.--Paragraph (7) of section 179(b) is amended--
(1) by striking ``2008'' and inserting ``2008, or 2009'', and
(2) by striking ``2008'' in the heading thereof and inserting
``2008, and 2009''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
PART II--SMALL BUSINESS PROVISIONS
SEC. 1211. 5-YEAR CARRYBACK OF OPERATING LOSSES OF SMALL BUSINESSES.
(a) In General.--Subparagraph (H) of section 172(b)(1) is amended
to read as follows:
``(H) Carryback for 2008 net operating losses of small
businesses.--
``(i) In general.--If an eligible small business elects
the application of this subparagraph with respect to an
applicable 2008 net operating loss--
``(I) subparagraph (A)(i) shall be applied by
substituting any whole number elected by the taxpayer
which is more than 2 and less than 6 for `2',
``(II) subparagraph (E)(ii) shall be applied by
substituting the whole number which is one less than
the whole number substituted under subclause (I) for
`2', and
``(III) subparagraph (F) shall not apply.
``(ii) Applicable 2008 net operating loss.--For
purposes of this subparagraph, the term `applicable 2008
net operating loss' means--
``(I) the taxpayer's net operating loss for any
taxable year ending in 2008, or
``(II) if the taxpayer elects to have this
subclause apply in lieu of subclause (I), the
taxpayer's net operating loss for any taxable year
beginning in 2008.
``(iii) Election.--Any election under this subparagraph
shall be made in such manner as may be prescribed by the
Secretary, and shall be made by the due date (including
extension of time) for filing the taxpayer's return for the
taxable year of the net operating loss. Any such election,
once made, shall be irrevocable. Any election under this
subparagraph may be made only with respect to 1 taxable
year.
``(iv) Eligible small business.--For purposes of this
subparagraph, the term `eligible small business' has the
meaning given such term by subparagraph (F)(iii), except
that in applying such subparagraph, section 448(c) shall be
applied by substituting `$15,000,000' for `$5,000,000' each
place it appears.''.
(b) Conforming Amendment.--Section 172 is amended by striking
subsection (k) and by redesignating subsection (l) as subsection (k).
(c) Anti-Abuse Rules.--The Secretary of Treasury or the Secretary's
designee shall prescribe such rules as are necessary to prevent the
abuse of the purposes of the amendments made by this section, including
anti-stuffing rules, anti-churning rules (including rules relating to
sale-leasebacks), and rules similar to the rules under section 1091 of
the Internal Revenue Code of 1986 relating to losses from wash sales.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to net
operating losses arising in taxable years ending after December 31,
2007.
(2) Transitional rule.--In the case of a net operating loss for
a taxable year ending before the date of the enactment of this
Act--
(A) any election made under section 172(b)(3) of the
Internal Revenue Code of 1986 with respect to such loss may
(notwithstanding such section) be revoked before the applicable
date,
(B) any election made under section 172(b)(1)(H) of such
Code with respect to such loss shall (notwithstanding such
section) be treated as timely made if made before the
applicable date, and
(C) any application under section 6411(a) of such Code with
respect to such loss shall be treated as timely filed if filed
before the applicable date.
For purposes of this paragraph, the term ``applicable date'' means
the date which is 60 days after the date of the enactment of this
Act.
SEC. 1212. DECREASED REQUIRED ESTIMATED TAX PAYMENTS IN 2009 FOR
CERTAIN SMALL BUSINESSES.
Paragraph (1) of section 6654(d) is amended by adding at the end
the following new subparagraph:
``(D) Special rule for 2009.--
``(i) In general.--Notwithstanding subparagraph (C), in
the case of any taxable year beginning in 2009, clause (ii)
of subparagraph (B) shall be applied to any qualified
individual by substituting `90 percent' for `100 percent'.
``(ii) Qualified individual.--For purposes of this
subparagraph, the term `qualified individual' means any
individual if--
``(I) the adjusted gross income shown on the return
of such individual for the preceding taxable year is
less than $500,000, and
``(II) such individual certifies that more than 50
percent of the gross income shown on the return of such
individual for the preceding taxable year was income
from a small business.
A certification under subclause (II) shall be in such form
and manner and filed at such time as the Secretary may by
regulations prescribe.
``(iii) Income from a small business.--For purposes of
clause (ii), income from a small business means, with
respect to any individual, income from a trade or business
the average number of employees of which was less than 500
employees for the calendar year ending with or within the
preceding taxable year of the individual.
``(iv) Separate returns.--In the case of a married
individual (within the meaning of section 7703) who files a
separate return for the taxable year for which the amount
of the installment is being determined, clause (ii)(I)
shall be applied by substituting `$250,000' for `$500,000'.
``(v) Estates and trusts.--In the case of an estate or
trust, adjusted gross income shall be determined as
provided in section 67(e).''.
PART III--INCENTIVES FOR NEW JOBS
SEC. 1221. INCENTIVES TO HIRE UNEMPLOYED VETERANS AND DISCONNECTED
YOUTH.
(a) In General.--Subsection (d) of section 51 is amended by adding
at the end the following new paragraph:
``(14) Credit allowed for unemployed veterans and disconnected
youth hired in 2009 or 2010.--
``(A) In general.--Any unemployed veteran or disconnected
youth who begins work for the employer during 2009 or 2010
shall be treated as a member of a targeted group for purposes
of this subpart.
``(B) Definitions.--For purposes of this paragraph--
``(i) Unemployed veteran.--The term `unemployed
veteran' means any veteran (as defined in paragraph (3)(B),
determined without regard to clause (ii) thereof) who is
certified by the designated local agency as--
``(I) having been discharged or released from
active duty in the Armed Forces at any time during the
5-year period ending on the hiring date, and
``(II) being in receipt of unemployment
compensation under State or Federal law for not less
than 4 weeks during the 1-year period ending on the
hiring date.
``(ii) Disconnected youth.--The term `disconnected
youth' means any individual who is certified by the
designated local agency--
``(I) as having attained age 16 but not age 25 on
the hiring date,
``(II) as not regularly attending any secondary,
technical, or post-secondary school during the 6-month
period preceding the hiring date,
``(III) as not regularly employed during such 6-
month period, and
``(IV) as not readily employable by reason of
lacking a sufficient number of basic skills.''.
(b) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after December 31,
2008.
PART IV--RULES RELATING TO DEBT INSTRUMENTS
SEC. 1231. DEFERRAL AND RATABLE INCLUSION OF INCOME ARISING FROM
BUSINESS INDEBTEDNESS DISCHARGED BY THE REACQUISITION OF
A DEBT INSTRUMENT.
(a) In General.--Section 108 (relating to income from discharge of
indebtedness) is amended by adding at the end the following new
subsection:
``(i) Deferral and Ratable Inclusion of Income Arising From
Business Indebtedness Discharged by the Reacquisition of a Debt
Instrument.--
``(1) In general.--At the election of the taxpayer, income from
the discharge of indebtedness in connection with the reacquisition
after December 31, 2008, and before January 1, 2011, of an
applicable debt instrument shall be includible in gross income
ratably over the 5-taxable-year period beginning with--
``(A) in the case of a reacquisition occurring in 2009, the
fifth taxable year following the taxable year in which the
reacquisition occurs, and
``(B) in the case of a reacquisition occurring in 2010, the
fourth taxable year following the taxable year in which the
reacquisition occurs.
``(2) Deferral of deduction for original issue discount in debt
for debt exchanges.--
``(A) In general.--If, as part of a reacquisition to which
paragraph (1) applies, any debt instrument is issued for the
applicable debt instrument being reacquired (or is treated as
so issued under subsection (e)(4) and the regulations
thereunder) and there is any original issue discount determined
under subpart A of part V of subchapter P of this chapter with
respect to the debt instrument so issued--
``(i) except as provided in clause (ii), no deduction
otherwise allowable under this chapter shall be allowed to
the issuer of such debt instrument with respect to the
portion of such original issue discount which--
``(I) accrues before the 1st taxable year in the 5-
taxable-year period in which income from the discharge
of indebtedness attributable to the reacquisition of
the debt instrument is includible under paragraph (1),
and
``(II) does not exceed the income from the
discharge of indebtedness with respect to the debt
instrument being reacquired, and
``(ii) the aggregate amount of deductions disallowed
under clause (i) shall be allowed as a deduction ratably
over the 5-taxable-year period described in clause (i)(I).
If the amount of the original issue discount accruing before
such 1st taxable year exceeds the income from the discharge of
indebtedness with respect to the applicable debt instrument
being reacquired, the deductions shall be disallowed in the
order in which the original issue discount is accrued.
``(B) Deemed debt for debt exchanges.--For purposes of
subparagraph (A), if any debt instrument is issued by an issuer
and the proceeds of such debt instrument are used directly or
indirectly by the issuer to reacquire an applicable debt
instrument of the issuer, the debt instrument so issued shall
be treated as issued for the debt instrument being reacquired.
If only a portion of the proceeds from a debt instrument are so
used, the rules of subparagraph (A) shall apply to the portion
of any original issue discount on the newly issued debt
instrument which is equal to the portion of the proceeds from
such instrument used to reacquire the outstanding instrument.
``(3) Applicable debt instrument.--For purposes of this
subsection--
``(A) Applicable debt instrument.--The term `applicable
debt instrument' means any debt instrument which was issued
by--
``(i) a C corporation, or
``(ii) any other person in connection with the conduct
of a trade or business by such person.
``(B) Debt instrument.--The term `debt instrument' means a
bond, debenture, note, certificate, or any other instrument or
contractual arrangement constituting indebtedness (within the
meaning of section 1275(a)(1)).
``(4) Reacquisition.--For purposes of this subsection--
``(A) In general.--The term `reacquisition' means, with
respect to any applicable debt instrument, any acquisition of
the debt instrument by--
``(i) the debtor which issued (or is otherwise the
obligor under) the debt instrument, or
``(ii) a related person to such debtor.
``(B) Acquisition.--The term `acquisition' shall, with
respect to any applicable debt instrument, include an
acquisition of the debt instrument for cash, the exchange of
the debt instrument for another debt instrument (including an
exchange resulting from a modification of the debt instrument),
the exchange of the debt instrument for corporate stock or a
partnership interest, and the contribution of the debt
instrument to capital. Such term shall also include the
complete forgiveness of the indebtedness by the holder of the
debt instrument.
``(5) Other definitions and rules.--For purposes of this
subsection--
``(A) Related person.--The determination of whether a
person is related to another person shall be made in the same
manner as under subsection (e)(4).
``(B) Election.--
``(i) In general.--An election under this subsection
with respect to any applicable debt instrument shall be
made by including with the return of tax imposed by chapter
1 for the taxable year in which the reacquisition of the
debt instrument occurs a statement which--
``(I) clearly identifies such instrument, and
``(II) includes the amount of income to which
paragraph (1) applies and such other information as the
Secretary may prescribe.
``(ii) Election irrevocable.--Such election, once made,
is irrevocable.
``(iii) Pass-thru entities.--In the case of a
partnership, S corporation, or other pass-thru entity, the
election under this subsection shall be made by the
partnership, the S corporation, or other entity involved.
``(C) Coordination with other exclusions.--If a taxpayer
elects to have this subsection apply to an applicable debt
instrument, subparagraphs (A), (B), (C), and (D) of subsection
(a)(1) shall not apply to the income from the discharge of such
indebtedness for the taxable year of the election or any
subsequent taxable year.
``(D) Acceleration of deferred items.--
``(i) In general.--In the case of the death of the
taxpayer, the liquidation or sale of substantially all the
assets of the taxpayer (including in a title 11 or similar
case), the cessation of business by the taxpayer, or
similar circumstances, any item of income or deduction
which is deferred under this subsection (and has not
previously been taken into account) shall be taken into
account in the taxable year in which such event occurs (or
in the case of a title 11 or similar case, the day before
the petition is filed).
``(ii) Special rule for pass-thru entities.--The rule
of clause (i) shall also apply in the case of the sale or
exchange or redemption of an interest in a partnership, S
corporation, or other pass- thru entity by a partner,
shareholder, or other person holding an ownership interest
in such entity.
``(6) Special rule for partnerships.--In the case of a
partnership, any income deferred under this subsection shall be
allocated to the partners in the partnership immediately before the
discharge in the manner such amounts would have been included in
the distributive shares of such partners under section 704 if such
income were recognized at such time. Any decrease in a partner's
share of partnership liabilities as a result of such discharge
shall not be taken into account for purposes of section 752 at the
time of the discharge to the extent it would cause the partner to
recognize gain under section 731. Any decrease in partnership
liabilities deferred under the preceding sentence shall be taken
into account by such partner at the same time, and to the extent
remaining in the same amount, as income deferred under this
subsection is recognized.
``(7) Secretarial authority.--The Secretary may prescribe such
regulations, rules, or other guidance as may be necessary or
appropriate for purposes of applying this subsection, including--
``(A) extending the application of the rules of paragraph
(5)(D) to other circumstances where appropriate,
``(B) requiring reporting of the election (and such other
information as the Secretary may require) on returns of tax for
subsequent taxable years, and
``(C) rules for the application of this subsection to
partnerships, S corporations, and other pass-thru entities,
including for the allocation of deferred deductions.''.
(b) Effective Date.--The amendments made by this section shall
apply to discharges in taxable years ending after December 31, 2008.
SEC. 1232. MODIFICATIONS OF RULES FOR ORIGINAL ISSUE DISCOUNT ON
CERTAIN HIGH YIELD OBLIGATIONS.
(a) Suspension of Special Rules.--Section 163(e)(5) (relating to
special rules for original issue discount on certain high yield
obligations) is amended by redesignating subparagraph (F) as
subparagraph (G) and by inserting after subparagraph (E) the following
new subparagraph:
``(F) Suspension of application of paragraph.--
``(i) Temporary suspension.--This paragraph shall not
apply to any applicable high yield discount obligation
issued during the period beginning on September 1, 2008,
and ending on December 31, 2009, in exchange (including an
exchange resulting from a modification of the debt
instrument) for an obligation which is not an applicable
high yield discount obligation and the issuer (or obligor)
of which is the same as the issuer (or obligor) of such
applicable high yield discount obligation. The preceding
sentence shall not apply to any obligation the interest on
which is interest described in section 871(h)(4) (without
regard to subparagraph (D) thereof) or to any obligation
issued to a related person (within the meaning of section
108(e)(4)).
``(ii) Successive application.--Any obligation to which
clause (i) applies shall not be treated as an applicable
high yield discount obligation for purposes of applying
this subparagraph to any other obligation issued in
exchange for such obligation.
``(iii) Secretarial authority to suspend application.--
The Secretary may apply this paragraph with respect to debt
instruments issued in periods following the period
described in clause (i) if the Secretary determines that
such application is appropriate in light of distressed
conditions in the debt capital markets.''.
(b) Interest Rate Used in Determining High Yield Obligations.--The
last sentence of section 163(i)(1) is amended--
(1) by inserting ``(i)'' after ``regulation'', and
(2) by inserting ``, or (ii) permit, on a temporary basis, a
rate to be used with respect to any debt instrument which is higher
than the applicable Federal rate if the Secretary determines that
such rate is appropriate in light of distressed conditions in the
debt capital markets'' before the period at the end.
(c) Effective Date.--
(1) Suspension.--The amendments made by subsection (a) shall
apply to obligations issued after August 31, 2008, in taxable years
ending after such date.
(2) Interest rate authority.--The amendments made by subsection
(b) shall apply to obligations issued after December 31, 2009, in
taxable years ending after such date.
PART V--QUALIFIED SMALL BUSINESS STOCK
SEC. 1241. SPECIAL RULES APPLICABLE TO QUALIFIED SMALL BUSINESS STOCK
FOR 2009 AND 2010.
(a) In General.--Section 1202(a) is amended by adding at the end
the following new paragraph:
``(3) Special rules for 2009 and 2010.--In the case of
qualified small business stock acquired after the date of the
enactment of this paragraph and before January 1, 2011--
``(A) paragraph (1) shall be applied by substituting `75
percent' for `50 percent', and
``(B) paragraph (2) shall not apply.''.
(b) Effective Date.--The amendment made by this section shall apply
to stock acquired after the date of the enactment of this Act.
PART VI--S CORPORATIONS
SEC. 1251. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN GAINS
TAX.
(a) In General.--Paragraph (7) of section 1374(d) (relating to
definitions and special rules) is amended to read as follows:
``(7) Recognition period.--
``(A) In general.--The term `recognition period' means the
10-year period beginning with the 1st day of the 1st taxable
year for which the corporation was an S corporation.
``(B) Special rule for 2009 and 2010.--In the case of any
taxable year beginning in 2009 or 2010, no tax shall be imposed
on the net recognized built-in gain of an S corporation if the
7th taxable year in the recognition period preceded such
taxable year. The preceding sentence shall be applied
separately with respect to any asset to which paragraph (8)
applies.
``(C) Special rule for distributions to shareholders.--For
purposes of applying this section to any amount includible in
income by reason of distributions to shareholders pursuant to
section 593(e)--
``(i) subparagraph (A) shall be applied without regard
to the phrase `10-year', and
``(ii) subparagraph (B) shall not apply.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2008.
PART VII--RULES RELATING TO OWNERSHIP CHANGES
SEC. 1261. CLARIFICATION OF REGULATIONS RELATED TO LIMITATIONS ON
CERTAIN BUILT-IN LOSSES FOLLOWING AN OWNERSHIP CHANGE.
(a) Findings.--Congress finds as follows:
(1) The delegation of authority to the Secretary of the
Treasury under section 382(m) of the Internal Revenue Code of 1986
does not authorize the Secretary to provide exemptions or special
rules that are restricted to particular industries or classes of
taxpayers.
(2) Internal Revenue Service Notice 2008-83 is inconsistent
with the congressional intent in enacting such section 382(m).
(3) The legal authority to prescribe Internal Revenue Service
Notice 2008-83 is doubtful.
(4) However, as taxpayers should generally be able to rely on
guidance issued by the Secretary of the Treasury legislation is
necessary to clarify the force and effect of Internal Revenue
Service Notice 2008-83 and restore the proper application under the
Internal Revenue Code of 1986 of the limitation on built-in losses
following an ownership change of a bank.
(b) Determination of Force and Effect of Internal Revenue Service
Notice 2008-83 Exempting Banks From Limitation on Certain Built-in
Losses Following Ownership Change.--
(1) In general.--Internal Revenue Service Notice 2008-83--
(A) shall be deemed to have the force and effect of law
with respect to any ownership change (as defined in section
382(g) of the Internal Revenue Code of 1986) occurring on or
before January 16, 2009, and
(B) shall have no force or effect with respect to any
ownership change after such date.
(2) Binding contracts.--Notwithstanding paragraph (1), Internal
Revenue Service Notice 2008-83 shall have the force and effect of
law with respect to any ownership change (as so defined) which
occurs after January 16, 2009, if such change--
(A) is pursuant to a written binding contract entered into
on or before such date, or
(B) is pursuant to a written agreement entered into on or
before such date and such agreement was described on or before
such date in a public announcement or in a filing with the
Securities and Exchange Commission required by reason of such
ownership change.
SEC. 1262. TREATMENT OF CERTAIN OWNERSHIP CHANGES FOR PURPOSES OF
LIMITATIONS ON NET OPERATING LOSS CARRYFORWARDS AND
CERTAIN BUILT-IN LOSSES.
(a) In General.--Section 382 is amended by adding at the end the
following new subsection:
``(n) Special Rule for Certain Ownership Changes.--
``(1) In general.--The limitation contained in subsection (a)
shall not apply in the case of an ownership change which is
pursuant to a restructuring plan of a taxpayer which--
``(A) is required under a loan agreement or a commitment
for a line of credit entered into with the Department of the
Treasury under the Emergency Economic Stabilization Act of
2008, and
``(B) is intended to result in a rationalization of the
costs, capitalization, and capacity with respect to the
manufacturing workforce of, and suppliers to, the taxpayer and
its subsidiaries.
``(2) Subsequent acquisitions.--Paragraph (1) shall not apply
in the case of any subsequent ownership change unless such
ownership change is described in such paragraph.
``(3) Limitation based on control in corporation.--
``(A) In general.--Paragraph (1) shall not apply in the
case of any ownership change if, immediately after such
ownership change, any person (other than a voluntary employees'
beneficiary association under section 501(c)(9)) owns stock of
the new loss corporation possessing 50 percent or more of the
total combined voting power of all classes of stock entitled to
vote, or of the total value of the stock of such corporation.
``(B) Treatment of related persons.--
``(i) In general.--Related persons shall be treated as
a single person for purposes of this paragraph.
``(ii) Related persons.--For purposes of clause (i), a
person shall be treated as related to another person if--
``(I) such person bears a relationship to such
other person described in section 267(b) or 707(b), or
``(II) such persons are members of a group of
persons acting in concert.''.
(b) Effective Date.--The amendment made by this section shall apply
to ownership changes after the date of the enactment of this Act.
Subtitle D--Manufacturing Recovery Provisions
SEC. 1301. TEMPORARY EXPANSION OF AVAILABILITY OF INDUSTRIAL
DEVELOPMENT BONDS TO FACILITIES MANUFACTURING INTANGIBLE
PROPERTY.
(a) In General.--Subparagraph (C) of section 144(a)(12) is
amended--
(1) by striking ``For purposes of this paragraph, the term''
and inserting ``For purposes of this paragraph--
``(i) In general.--The term'', and
(2) by striking the last sentence and inserting the following
new clauses:
``(ii) Certain facilities included.--Such term includes
facilities which are directly related and ancillary to a
manufacturing facility (determined without regard to this
clause) if--
``(I) such facilities are located on the same site
as the manufacturing facility, and
``(II) not more than 25 percent of the net proceeds
of the issue are used to provide such facilities.
``(iii) Special rules for bonds issued in 2009 and
2010.--In the case of any issue made after the date of
enactment of this clause and before January 1, 2011, clause
(ii) shall not apply and the net proceeds from a bond shall
be considered to be used to provide a manufacturing
facility if such proceeds are used to provide--
``(I) a facility which is used in the creation or
production of intangible property which is described in
section 197(d)(1)(C)(iii), or
``(II) a facility which is functionally related and
subordinate to a manufacturing facility (determined
without regard to this subclause) if such facility is
located on the same site as the manufacturing
facility.''.
(b) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
SEC. 1302. CREDIT FOR INVESTMENT IN ADVANCED ENERGY FACILITIES.
(a) In General.--Section 46 (relating to amount of credit) is
amended by striking ``and'' at the end of paragraph (3), by striking
the period at the end of paragraph (4), and by adding at the end the
following new paragraph:
``(5) the qualifying advanced energy project credit.''.
(b) Amount of Credit.--Subpart E of part IV of subchapter A of
chapter 1 (relating to rules for computing investment credit) is
amended by inserting after section 48B the following new section:
``SEC. 48C. QUALIFYING ADVANCED ENERGY PROJECT CREDIT.
``(a) In General.--For purposes of section 46, the qualifying
advanced energy project credit for any taxable year is an amount equal
to 30 percent of the qualified investment for such taxable year with
respect to any qualifying advanced energy project of the taxpayer.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is the basis of eligible
property placed in service by the taxpayer during such taxable year
which is part of a qualifying advanced energy project.
``(2) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4) and
(d) of section 46 (as in effect on the day before the enactment of
the Revenue Reconciliation Act of 1990) shall apply for purposes of
this section.
``(3) Limitation.--The amount which is treated for all taxable
years with respect to any qualifying advanced energy project shall
not exceed the amount designated by the Secretary as eligible for
the credit under this section.
``(c) Definitions.--
``(1) Qualifying advanced energy project.--
``(A) In general.--The term `qualifying advanced energy
project' means a project--
``(i) which re-equips, expands, or establishes a
manufacturing facility for the production of--
``(I) property designed to be used to produce
energy from the sun, wind, geothermal deposits (within
the meaning of section 613(e)(2)), or other renewable
resources,
``(II) fuel cells, microturbines, or an energy
storage system for use with electric or hybrid-electric
motor vehicles,
``(III) electric grids to support the transmission
of intermittent sources of renewable energy, including
storage of such energy,
``(IV) property designed to capture and sequester
carbon dioxide emissions,
``(V) property designed to refine or blend
renewable fuels or to produce energy conservation
technologies (including energy-conserving lighting
technologies and smart grid technologies),
``(VI) new qualified plug-in electric drive motor
vehicles (as defined by section 30D), qualified plug-in
electric vehicles (as defined by section 30(d)), or
components which are designed specifically for use with
such vehicles, including electric motors, generators,
and power control units, or
``(VII) other advanced energy property designed to
reduce greenhouse gas emissions as may be determined by
the Secretary, and
``(ii) any portion of the qualified investment of which
is certified by the Secretary under subsection (d) as
eligible for a credit under this section.
``(B) Exception.--Such term shall not include any portion
of a project for the production of any property which is used
in the refining or blending of any transportation fuel (other
than renewable fuels).
``(2) Eligible property.--The term `eligible property' means
any property--
``(A) which is necessary for the production of property
described in paragraph (1)(A)(i),
``(B) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not including a
building or its structural components), but only if such
property is used as an integral part of the qualified
investment credit facility, and
``(C) with respect to which depreciation (or amortization
in lieu of depreciation) is allowable.
``(d) Qualifying Advanced Energy Project Program.--
``(1) Establishment.--
``(A) In general.--Not later than 180 days after the date
of enactment of this section, the Secretary, in consultation
with the Secretary of Energy, shall establish a qualifying
advanced energy project program to consider and award
certifications for qualified investments eligible for credits
under this section to qualifying advanced energy project
sponsors.
``(B) Limitation.--The total amount of credits that may be
allocated under the program shall not exceed $2,300,000,000.
``(2) Certification.--
``(A) Application period.--Each applicant for certification
under this paragraph shall submit an application containing
such information as the Secretary may require during the 2-year
period beginning on the date the Secretary establishes the
program under paragraph (1).
``(B) Time to meet criteria for certification.--Each
applicant for certification shall have 1 year from the date of
acceptance by the Secretary of the application during which to
provide to the Secretary evidence that the requirements of the
certification have been met.
``(C) Period of issuance.--An applicant which receives a
certification shall have 3 years from the date of issuance of
the certification in order to place the project in service and
if such project is not placed in service by that time period,
then the certification shall no longer be valid.
``(3) Selection criteria.--In determining which qualifying
advanced energy projects to certify under this section, the
Secretary--
``(A) shall take into consideration only those projects
where there is a reasonable expectation of commercial
viability, and
``(B) shall take into consideration which projects--
``(i) will provide the greatest domestic job creation
(both direct and indirect) during the credit period,
``(ii) will provide the greatest net impact in avoiding
or reducing air pollutants or anthropogenic emissions of
greenhouse gases,
``(iii) have the greatest potential for technological
innovation and commercial deployment,
``(iv) have the lowest levelized cost of generated or
stored energy, or of measured reduction in energy
consumption or greenhouse gas emission (based on costs of
the full supply chain), and
``(v) have the shortest project time from certification
to completion.
``(4) Review and redistribution.--
``(A) Review.--Not later than 4 years after the date of
enactment of this section, the Secretary shall review the
credits allocated under this section as of such date.
``(B) Redistribution.--The Secretary may reallocate credits
awarded under this section if the Secretary determines that--
``(i) there is an insufficient quantity of qualifying
applications for certification pending at the time of the
review, or
``(ii) any certification made pursuant to paragraph (2)
has been revoked pursuant to paragraph (2)(B) because the
project subject to the certification has been delayed as a
result of third party opposition or litigation to the
proposed project.
``(C) Reallocation.--If the Secretary determines that
credits under this section are available for reallocation
pursuant to the requirements set forth in paragraph (2), the
Secretary is authorized to conduct an additional program for
applications for certification.
``(5) Disclosure of allocations.--The Secretary shall, upon
making a certification under this subsection, publicly disclose the
identity of the applicant and the amount of the credit with respect
to such applicant.
``(e) Denial of Double Benefit.--A credit shall not be allowed
under this section for any qualified investment for which a credit is
allowed under section 48, 48A, or 48B.''.
(c) Conforming Amendments.--
(1) Section 49(a)(1)(C) is amended by striking ``and'' at the
end of clause (iii), by striking the period at the end of clause
(iv) and inserting ``, and'', and by adding after clause (iv) the
following new clause:
``(v) the basis of any property which is part of a
qualifying advanced energy project under section 48C.''.
(2) The table of sections for subpart E of part IV of
subchapter A of chapter 1 is amended by inserting after the item
relating to section 48B the following new item:
``48C. Qualifying advanced energy project credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to periods after the date of the enactment of this Act, under
rules similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the enactment
of the Revenue Reconciliation Act of 1990).
Subtitle E--Economic Recovery Tools
SEC. 1401. RECOVERY ZONE BONDS.
(a) In General.--Subchapter Y of chapter 1 is amended by adding at
the end the following new part:
``PART III--RECOVERY ZONE BONDS
``Sec. 1400U-1. Allocation of recovery zone bonds.
``Sec. 1400U-2. Recovery zone economic development bonds.
``Sec. 1400U-3. Recovery zone facility bonds.
``SEC. 1400U-1. ALLOCATION OF RECOVERY ZONE BONDS.
``(a) Allocations.--
``(1) In general.--
``(A) General allocation.--The Secretary shall allocate the
national recovery zone economic development bond limitation and
the national recovery zone facility bond limitation among the
States in the proportion that each such State's 2008 State
employment decline bears to the aggregate of the 2008 State
employment declines for all of the States.
``(B) Minimum allocation.--The Secretary shall adjust the
allocations under subparagraph (A) for any calendar year for
each State to the extent necessary to ensure that no State
receives less than 0.9 percent of the national recovery zone
economic development bond limitation and 0.9 percent of the
national recovery zone facility bond limitation.
``(2) 2008 state employment decline.--For purposes of this
subsection, the term `2008 State employment decline' means, with
respect to any State, the excess (if any) of--
``(A) the number of individuals employed in such State
determined for December 2007, over
``(B) the number of individuals employed in such State
determined for December 2008.
``(3) Allocations by states.--
``(A) In general.--Each State with respect to which an
allocation is made under paragraph (1) shall reallocate such
allocation among the counties and large municipalities in such
State in the proportion to each such county's or municipality's
2008 employment decline bears to the aggregate of the 2008
employment declines for all the counties and municipalities in
such State. A county or municipality may waive any portion of
an allocation made under this subparagraph.
``(B) Large municipalities.--For purposes of subparagraph
(A), the term `large municipality' means a municipality with a
population of more than 100,000.
``(C) Determination of local employment declines.--For
purposes of this paragraph, the employment decline of any
municipality or county shall be determined in the same manner
as determining the State employment decline under paragraph
(2), except that in the case of a municipality any portion of
which is in a county, such portion shall be treated as part of
such municipality and not part of such county.
``(4) National limitations.--
``(A) Recovery zone economic development bonds.--There is a
national recovery zone economic development bond limitation of
$10,000,000,000.
``(B) Recovery zone facility bonds.--There is a national
recovery zone facility bond limitation of $15,000,000,000.
``(b) Recovery Zone.--For purposes of this part, the term `recovery
zone' means--
``(1) any area designated by the issuer as having significant
poverty, unemployment, rate of home foreclosures, or general
distress,
``(2) any area designated by the issuer as economically
distressed by reason of the closure or realignment of a military
installation pursuant to the Defense Base Closure and Realignment
Act of 1990, and
``(3) any area for which a designation as an empowerment zone
or renewal community is in effect.
``SEC. 1400U-2. RECOVERY ZONE ECONOMIC DEVELOPMENT BONDS.
``(a) In General.--In the case of a recovery zone economic
development bond--
``(1) such bond shall be treated as a qualified bond for
purposes of section 6431, and
``(2) subsection (b) of such section shall be applied by
substituting `45 percent' for `35 percent'.
``(b) Recovery Zone Economic Development Bond.--
``(1) In general.--For purposes of this section, the term
`recovery zone economic development bond' means any build America
bond (as defined in section 54AA(d)) issued before January 1, 2011,
as part of issue if--
``(A) 100 percent of the excess of--
``(i) the available project proceeds (as defined in
section 54A) of such issue, over
``(ii) the amounts in a reasonably required reserve
(within the meaning of section 150(a)(3)) with respect to
such issue,
are to be used for one or more qualified economic development
purposes, and
``(B) the issuer designates such bond for purposes of this
section.
``(2) Limitation on amount of bonds designated.--The maximum
aggregate face amount of bonds which may be designated by any
issuer under paragraph (1) shall not exceed the amount of the
recovery zone economic development bond limitation allocated to
such issuer under section 1400U-1.
``(c) Qualified Economic Development Purpose.--For purposes of this
section, the term `qualified economic development purpose' means
expenditures for purposes of promoting development or other economic
activity in a recovery zone, including--
``(1) capital expenditures paid or incurred with respect to
property located in such zone,
``(2) expenditures for public infrastructure and construction
of public facilities, and
``(3) expenditures for job training and educational programs.
``SEC. 1400U-3. RECOVERY ZONE FACILITY BONDS.
``(a) In General.--For purposes of part IV of subchapter B
(relating to tax exemption requirements for State and local bonds), the
term `exempt facility bond' includes any recovery zone facility bond.
``(b) Recovery Zone Facility Bond.--
``(1) In general.--For purposes of this section, the term
`recovery zone facility bond' means any bond issued as part of an
issue if--
``(A) 95 percent or more of the net proceeds (as defined in
section 150(a)(3)) of such issue are to be used for recovery
zone property,
``(B) such bond is issued before January 1, 2011, and
``(C) the issuer designates such bond for purposes of this
section.
``(2) Limitation on amount of bonds designated.--The maximum
aggregate face amount of bonds which may be designated by any
issuer under paragraph (1) shall not exceed the amount of recovery
zone facility bond limitation allocated to such issuer under
section 1400U-1.
``(c) Recovery Zone Property.--For purposes of this section--
``(1) In general.--The term `recovery zone property' means any
property to which section 168 applies (or would apply but for
section 179) if--
``(A) such property was constructed, reconstructed,
renovated, or acquired by purchase (as defined in section
179(d)(2)) by the taxpayer after the date on which the
designation of the recovery zone took effect,
``(B) the original use of which in the recovery zone
commences with the taxpayer, and
``(C) substantially all of the use of which is in the
recovery zone and is in the active conduct of a qualified
business by the taxpayer in such zone.
``(2) Qualified business.--The term `qualified business' means
any trade or business except that--
``(A) the rental to others of real property located in a
recovery zone shall be treated as a qualified business only if
the property is not residential rental property (as defined in
section 168(e)(2)), and
``(B) such term shall not include any trade or business
consisting of the operation of any facility described in
section 144(c)(6)(B).
``(3) Special rules for substantial renovations and sale-
leaseback.--Rules similar to the rules of subsections (a)(2) and
(b) of section 1397D shall apply for purposes of this subsection.
``(d) Nonapplication of Certain Rules.--Sections 146 (relating to
volume cap) and 147(d) (relating to acquisition of existing property
not permitted) shall not apply to any recovery zone facility bond.''.
(b) Clerical Amendment.--The table of parts for subchapter Y of
chapter 1 of such Code is amended by adding at the end the following
new item:
``Part III. Recovery Zone Bonds.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
SEC. 1402. TRIBAL ECONOMIC DEVELOPMENT BONDS.
(a) In General.--Section 7871 is amended by adding at the end the
following new subsection:
``(f) Tribal Economic Development Bonds.--
``(1) Allocation of limitation.--
``(A) In general.--The Secretary shall allocate the
national tribal economic development bond limitation among the
Indian tribal governments in such manner as the Secretary, in
consultation with the Secretary of the Interior, determines
appropriate.
``(B) National limitation.--There is a national tribal
economic development bond limitation of $2,000,000,000.
``(2) Bonds treated as exempt from tax.--In the case of a
tribal economic development bond--
``(A) notwithstanding subsection (c), such bond shall be
treated for purposes of this title in the same manner as if
such bond were issued by a State,
``(B) the Indian tribal government issuing such bond and
any instrumentality of such Indian tribal government shall be
treated as a State for purposes of section 141, and
``(C) section 146 shall not apply.
``(3) Tribal economic development bond.--
``(A) In general.--For purposes of this section, the term
`tribal economic development bond' means any bond issued by an
Indian tribal government--
``(i) the interest on which would be exempt from tax
under section 103 if issued by a State or local government,
and
``(ii) which is designated by the Indian tribal
government as a tribal economic development bond for
purposes of this subsection.
``(B) Exceptions.--Such term shall not include any bond
issued as part of an issue if any portion of the proceeds of
such issue are used to finance--
``(i) any portion of a building in which class II or
class III gaming (as defined in section 4 of the Indian
Gaming Regulatory Act) is conducted or housed or any other
property actually used in the conduct of such gaming, or
``(ii) any facility located outside the Indian
reservation (as defined in section 168(j)(6)).
``(C) Limitation on amount of bonds designated.--The
maximum aggregate face amount of bonds which may be designated
by any Indian tribal government under subparagraph (A) shall
not exceed the amount of national tribal economic development
bond limitation allocated to such government under paragraph
(1).''.
(b) Study.--The Secretary of the Treasury, or the Secretary's
delegate, shall conduct a study of the effects of the amendment made by
subsection (a). Not later than 1 year after the date of the enactment
of this Act, the Secretary of the Treasury, or the Secretary's
delegate, shall report to Congress on the results of the study
conducted under this paragraph, including the Secretary's
recommendations regarding such amendment.
(c) Effective Date.--The amendment made by subsection (a) shall
apply to obligations issued after the date of the enactment of this
Act.
SEC. 1403. INCREASE IN NEW MARKETS TAX CREDIT.
(a) In General.--Section 45D(f)(1) is amended--
(1) by striking ``and'' at the end of subparagraph (C),
(2) by striking ``, 2007, 2008, and 2009.'' in subparagraph
(D), and inserting ``and 2007,'', and
(3) by adding at the end the following new subparagraphs:
``(E) $5,000,000,000 for 2008, and
``(F) $5,000,000,000 for 2009.''.
(b) Special Rule for Allocation of Increased 2008 Limitation.--The
amount of the increase in the new markets tax credit limitation for
calendar year 2008 by reason of the amendments made by subsection (a)
shall be allocated in accordance with section 45D(f)(2) of the Internal
Revenue Code of 1986 to qualified community development entities (as
defined in section 45D(c) of such Code) which--
(1) submitted an allocation application with respect to
calendar year 2008, and
(2)(A) did not receive an allocation for such calendar year, or
(B) received an allocation for such calendar year in an amount
less than the amount requested in the allocation application.
SEC. 1404. COORDINATION OF LOW-INCOME HOUSING CREDIT AND LOW-INCOME
HOUSING GRANTS.
Subsection (i) of section 42 is amended by adding at the end the
following new paragraph:
``(9) Coordination with low-income housing grants.--
``(A) Reduction in state housing credit ceiling for low-
income housing grants received in 2009.--For purposes of this
section, the amounts described in clauses (i) through (iv) of
subsection (h)(3)(C) with respect to any State for 2009 shall
each be reduced by so much of such amount as is taken into
account in determining the amount of any grant to such State
under section 1602 of the American Recovery and Reinvestment
Tax Act of 2009.
``(B) Special rule for basis.--Basis of a qualified low-
income building shall not be reduced by the amount of any grant
described in subparagraph (A).''.
Subtitle F--Infrastructure Financing Tools
PART I--IMPROVED MARKETABILITY FOR TAX-EXEMPT BONDS
SEC. 1501. DE MINIMIS SAFE HARBOR EXCEPTION FOR TAX-EXEMPT INTEREST
EXPENSE OF FINANCIAL INSTITUTIONS.
(a) In General.--Subsection (b) of section 265 is amended by adding
at the end the following new paragraph:
``(7) De minimis exception for bonds issued during 2009 or
2010.--
``(A) In general.--In applying paragraph (2)(A), there
shall not be taken into account tax-exempt obligations issued
during 2009 or 2010.
``(B) Limitation.--The amount of tax-exempt obligations not
taken into account by reason of subparagraph (A) shall not
exceed 2 percent of the amount determined under paragraph
(2)(B).
``(C) Refundings.--For purposes of this paragraph, a
refunding bond (whether a current or advance refunding) shall
be treated as issued on the date of the issuance of the
refunded bond (or in the case of a series of refundings, the
original bond).''.
(b) Treatment as Financial Institution Preference Item.--Clause
(iv) of section 291(e)(1)(B) is amended by adding at the end the
following: ``That portion of any obligation not taken into account
under paragraph (2)(A) of section 265(b) by reason of paragraph (7) of
such section shall be treated for purposes of this section as having
been acquired on August 7, 1986.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after December 31, 2008.
SEC. 1502. MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT
INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL
INSTITUTIONS.
(a) In General.--Paragraph (3) of section 265(b) (relating to
exception for certain tax-exempt obligations) is amended by adding at
the end the following new subparagraph:
``(G) Special rules for obligations issued during 2009 and
2010.--
``(i) Increase in limitation.--In the case of
obligations issued during 2009 or 2010, subparagraphs
(C)(i), (D)(i), and (D)(iii)(II) shall each be applied by
substituting `$30,000,000' for `$10,000,000'.
``(ii) Qualified 501(c)(3) bonds treated as issued by
exempt organization.--In the case of a qualified 501(c)(3)
bond (as defined in section 145) issued during 2009 or
2010, this paragraph shall be applied by treating the
501(c)(3) organization for whose benefit such bond was
issued as the issuer.
``(iii) Special rule for qualified financings.--In the
case of a qualified financing issue issued during 2009 or
2010--
``(I) subparagraph (F) shall not apply, and
``(II) any obligation issued as a part of such
issue shall be treated as a qualified tax-exempt
obligation if the requirements of this paragraph are
met with respect to each qualified portion of the issue
(determined by treating each qualified portion as a
separate issue which is issued by the qualified
borrower with respect to which such portion relates).
``(iv) Qualified financing issue.--For purposes of this
subparagraph, the term `qualified financing issue' means
any composite, pooled, or other conduit financing issue the
proceeds of which are used directly or indirectly to make
or finance loans to 1 or more ultimate borrowers each of
whom is a qualified borrower.
``(v) Qualified portion.--For purposes of this
subparagraph, the term `qualified portion' means that
portion of the proceeds which are used with respect to each
qualified borrower under the issue.
``(vi) Qualified borrower.--For purposes of this
subparagraph, the term `qualified borrower' means a
borrower which is a State or political subdivision thereof
or an organization described in section 501(c)(3) and
exempt from taxation under section 501(a).''.
(b) Effective Date.--The amendment made by this section shall apply
to obligations issued after December 31, 2008.
SEC. 1503. TEMPORARY MODIFICATION OF ALTERNATIVE MINIMUM TAX
LIMITATIONS ON TAX-EXEMPT BONDS.
(a) Interest on Private Activity Bonds Issued During 2009 and 2010
Not Treated as Tax Preference Item.--Subparagraph (C) of section
57(a)(5) is amended by adding at the end a new clause:
``(vi) Exception for bonds issued in 2009 and 2010.--
``(I) In general.--For purposes of clause (i), the
term `private activity bond' shall not include any bond
issued after December 31, 2008, and before January 1,
2011.
``(II) Treatment of refunding bonds.--For purposes
of subclause (I), a refunding bond (whether a current
or advance refunding) shall be treated as issued on the
date of the issuance of the refunded bond (or in the
case of a series of refundings, the original bond).
``(III) Exception for certain refunding bonds.--
Subclause (II) shall not apply to any refunding bond
which is issued to refund any bond which was issued
after December 31, 2003, and before January 1, 2009.''.
(b) No Adjustment to Adjusted Current Earnings for Interest on Tax-
Exempt Bonds Issued During 2009 and 2010.--Subparagraph (B) of section
56(g)(4) is amended by adding at the end the following new clause:
``(iv) Tax exempt interest on bonds issued in 2009 and
2010.--
``(I) In general.--Clause (i) shall not apply in
the case of any interest on a bond issued after
December 31, 2008, and before January 1, 2011.
``(II) Treatment of refunding bonds.--For purposes
of subclause (I), a refunding bond (whether a current
or advance refunding) shall be treated as issued on the
date of the issuance of the refunded bond (or in the
case of a series of refundings, the original bond).
``(III) Exception for certain refunding bonds.--
Subclause (II) shall not apply to any refunding bond
which is issued to refund any bond which was issued
after December 31, 2003, and before January 1, 2009.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after December 31, 2008.
SEC. 1504. MODIFICATION TO HIGH SPEED INTERCITY RAIL FACILITY BONDS.
(a) In General.--Paragraph (1) of section 142(i) is amended by
striking ``operate at speeds in excess of'' and inserting ``be capable
of attaining a maximum speed in excess of''.
(b) Effective Date.--The amendment made by this section shall apply
to obligations issued after the date of the enactment of this Act.
PART II--DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT
CONTRACTORS
SEC. 1511. DELAY IN APPLICATION OF WITHHOLDING TAX ON GOVERNMENT
CONTRACTORS.
Subsection (b) of section 511 of the Tax Increase Prevention and
Reconciliation Act of 2005 is amended by striking ``December 31, 2010''
and inserting ``December 31, 2011''.
PART III--TAX CREDIT BONDS FOR SCHOOLS
SEC. 1521. QUALIFIED SCHOOL CONSTRUCTION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 54F. QUALIFIED SCHOOL CONSTRUCTION BONDS.
``(a) Qualified School Construction Bond.--For purposes of this
subchapter, the term `qualified school construction bond' means any
bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for the construction, rehabilitation, or
repair of a public school facility or for the acquisition of land
on which such a facility is to be constructed with part of the
proceeds of such issue,
``(2) the bond is issued by a State or local government within
the jurisdiction of which such school is located, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds issued during any calendar year which
may be designated under subsection (a) by any issuer shall not exceed
the limitation amount allocated under subsection (d) for such calendar
year to such issuer.
``(c) National Limitation on Amount of Bonds Designated.--There is
a national qualified school construction bond limitation for each
calendar year. Such limitation is--
``(1) $11,000,000,000 for 2009,
``(2) $11,000,000,000 for 2010, and
``(3) except as provided in subsection (e), zero after 2010.
``(d) Allocation of Limitation.--
``(1) Allocation among states.--Except as provided in paragraph
(2)(C), the limitation applicable under subsection (c) for any
calendar year shall be allocated by the Secretary among the States
in proportion to the respective amounts each such State is eligible
to receive under section 1124 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6333) for the most recent fiscal
year ending before such calendar year. The limitation amount
allocated to a State under the preceding sentence shall be
allocated by the State to issuers within such State.
``(2) 40 percent of limitation allocated among largest school
districts.--
``(A) In general.--40 percent of the limitation applicable
under subsection (c) for any calendar year shall be allocated
under subparagraph (B) by the Secretary among local educational
agencies which are large local educational agencies for such
year.
``(B) Allocation formula.--The amount to be allocated under
subparagraph (A) for any calendar year shall be allocated among
large local educational agencies in proportion to the
respective amounts each such agency received under section 1124
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6333) for the most recent fiscal year ending before such
calendar year.
``(C) Reduction in state allocation.--The allocation to any
State under paragraph (1) shall be reduced by the aggregate
amount of the allocations under this paragraph to large local
educational agencies within such State.
``(D) Allocation of unused limitation to state.--The amount
allocated under this paragraph to a large local educational
agency for any calendar year may be reallocated by such agency
to the State in which such agency is located for such calendar
year. Any amount reallocated to a State under the preceding
sentence may be allocated as provided in paragraph (1).
``(E) Large local educational agency.--For purposes of this
paragraph, the term `large local educational agency' means,
with respect to a calendar year, any local educational agency
if such agency is--
``(i) among the 100 local educational agencies with the
largest numbers of children aged 5 through 17 from families
living below the poverty level, as determined by the
Secretary using the most recent data available from the
Department of Commerce that are satisfactory to the
Secretary, or
``(ii) 1 of not more than 25 local educational agencies
(other than those described in clause (i)) that the
Secretary of Education determines (based on the most recent
data available satisfactory to the Secretary) are in
particular need of assistance, based on a low level of
resources for school construction, a high level of
enrollment growth, or such other factors as the Secretary
deems appropriate.
``(3) Allocations to certain possessions.--The amount to be
allocated under paragraph (1) to any possession of the United
States other than Puerto Rico shall be the amount which would have
been allocated if all allocations under paragraph (1) were made on
the basis of respective populations of individuals below the
poverty line (as defined by the Office of Management and Budget).
In making other allocations, the amount to be allocated under
paragraph (1) shall be reduced by the aggregate amount allocated
under this paragraph to possessions of the United States.
``(4) Allocations for indian schools.--In addition to the
amounts otherwise allocated under this subsection, $200,000,000 for
calendar year 2009, and $200,000,000 for calendar year 2010, shall
be allocated by the Secretary of the Interior for purposes of the
construction, rehabilitation, and repair of schools funded by the
Bureau of Indian Affairs. In the case of amounts allocated under
the preceding sentence, Indian tribal governments (as defined in
section 7701(a)(40)) shall be treated as qualified issuers for
purposes of this subchapter.
``(e) Carryover of Unused Limitation.--If for any calendar year--
``(1) the amount allocated under subsection (d) to any State,
exceeds
``(2) the amount of bonds issued during such year which are
designated under subsection (a) pursuant to such allocation,
the limitation amount under such subsection for such State for the
following calendar year shall be increased by the amount of such
excess. A similar rule shall apply to the amounts allocated under
subsection (d)(4).''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d) is amended by striking
``or'' at the end of subparagraph (C), by inserting ``or'' at the
end of subparagraph (D), and by inserting after subparagraph (D)
the following new subparagraph:
``(E) a qualified school construction bond,''.
(2) Subparagraph (C) of section 54A(d)(2) is amended by
striking ``and'' at the end of clause (iii), by striking the period
at the end of clause (iv) and inserting ``, and'', and by adding at
the end the following new clause:
``(v) in the case of a qualified school construction
bond, a purpose specified in section 54F(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54F. Qualified school construction bonds.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
SEC. 1522. EXTENSION AND EXPANSION OF QUALIFIED ZONE ACADEMY BONDS.
(a) In General.--Section 54E(c)(1) is amended by striking ``and
2009'' and inserting ``and $1,400,000,000 for 2009 and 2010''.
(b) Effective Date.--The amendment made by this section shall apply
to obligations issued after December 31, 2008.
PART IV--BUILD AMERICA BONDS
SEC. 1531. BUILD AMERICA BONDS.
(a) In General.--Part IV of subchapter A of chapter 1 is amended by
adding at the end the following new subpart:
``Subpart J--Build America Bonds
``Sec. 54AA. Build America bonds.
``SEC. 54AA. BUILD AMERICA BONDS.
``(a) In General.--If a taxpayer holds a build America bond on one
or more interest payment dates of the bond during any taxable year,
there shall be allowed as a credit against the tax imposed by this
chapter for the taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to such dates.
``(b) Amount of Credit.--The amount of the credit determined under
this subsection with respect to any interest payment date for a build
America bond is 35 percent of the amount of interest payable by the
issuer with respect to such date .
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a) for
any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this part
(other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by paragraph
(1) for such taxable year, such excess shall be carried to the
succeeding taxable year and added to the credit allowable under
subsection (a) for such taxable year (determined before the
application of paragraph (1) for such succeeding taxable year).
``(d) Build America Bond.--
``(1) In general.--For purposes of this section, the term
`build America bond' means any obligation (other than a private
activity bond) if--
``(A) the interest on such obligation would (but for this
section) be excludable from gross income under section 103,
``(B) such obligation is issued before January 1, 2011, and
``(C) the issuer makes an irrevocable election to have this
section apply.
``(2) Applicable rules.--For purposes of applying paragraph
(1)--
``(A) for purposes of section 149(b), a build America bond
shall not be treated as federally guaranteed by reason of the
credit allowed under subsection (a) or section 6431,
``(B) for purposes of section 148, the yield on a build
America bond shall be determined without regard to the credit
allowed under subsection (a), and
``(C) a bond shall not be treated as a build America bond
if the issue price has more than a de minimis amount
(determined under rules similar to the rules of section
1273(a)(3)) of premium over the stated principal amount of the
bond.
``(e) Interest Payment Date.--For purposes of this section, the
term `interest payment date' means any date on which the holder of
record of the build America bond is entitled to a payment of interest
under such bond.
``(f) Special Rules.--
``(1) Interest on build america bonds includible in gross
income for federal income tax purposes.--For purposes of this
title, interest on any build America bond shall be includible in
gross income.
``(2) Application of certain rules.--Rules similar to the rules
of subsections (f), (g), (h), and (i) of section 54A shall apply
for purposes of the credit allowed under subsection (a).
``(g) Special Rule for Qualified Bonds Issued Before 2011.--In the
case of a qualified bond issued before January 1, 2011--
``(1) Issuer allowed refundable credit.--In lieu of any credit
allowed under this section with respect to such bond, the issuer of
such bond shall be allowed a credit as provided in section 6431.
``(2) Qualified bond.--For purposes of this subsection, the
term `qualified bond' means any build America bond issued as part
of an issue if--
``(A) 100 percent of the excess of--
``(i) the available project proceeds (as defined in
section 54A) of such issue, over
``(ii) the amounts in a reasonably required reserve
(within the meaning of section 150(a)(3)) with respect to
such issue,
are to be used for capital expenditures, and
``(B) the issuer makes an irrevocable election to have this
subsection apply.
``(h) Regulations.--The Secretary may prescribe such regulations
and other guidance as may be necessary or appropriate to carry out this
section and section 6431.''.
(b) Credit for Qualified Bonds Issued Before 2011.--Subchapter B of
chapter 65 is amended by adding at the end the following new section:
``SEC. 6431. CREDIT FOR QUALIFIED BONDS ALLOWED TO ISSUER.
``(a) In General.--In the case of a qualified bond issued before
January 1, 2011, the issuer of such bond shall be allowed a credit with
respect to each interest payment under such bond which shall be payable
by the Secretary as provided in subsection (b).
``(b) Payment of Credit.--The Secretary shall pay
(contemporaneously with each interest payment date under such bond) to
the issuer of such bond (or to any person who makes such interest
payments on behalf of the issuer) 35 percent of the interest payable
under such bond on such date.
``(c) Application of Arbitrage Rules.--For purposes of section 148,
the yield on a qualified bond shall be reduced by the credit allowed
under this section.
``(d) Interest Payment Date.--For purposes of this subsection, the
term `interest payment date' means each date on which interest is
payable by the issuer under the terms of the bond.
``(e) Qualified Bond.--For purposes of this subsection, the term
`qualified bond' has the meaning given such term in section 54AA(g).''.
(c) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by striking ``or 6428'' and inserting ``6428, or 6431,''.
(2) Section 54A(c)(1)(B) is amended by striking ``subpart C''
and inserting ``subparts C and J''.
(3) Sections 54(c)(2), 1397E(c)(2), and 1400N(l)(3)(B) are each
amended by striking ``and I'' and inserting ``, I, and J''.
(4) Section 6211(b)(4)(A) is amended by striking ``and 6428''
and inserting ``6428, and 6431''.
(5) Section 6401(b)(1) is amended by striking ``and I'' and
inserting ``I, and J''.
(6) The table of subparts for part IV of subchapter A of
chapter 1 is amended by adding at the end the following new item:
``subpart j. build america bonds.''.
(7) The table of section for subchapter B of chapter 65 is
amended by adding at the end the following new item:
``Sec. 6431. Credit for qualified bonds allowed to issuer.''.
(d) Transitional Coordination With State Law.--Except as otherwise
provided by a State after the date of the enactment of this Act, the
interest on any build America bond (as defined in section 54AA of the
Internal Revenue Code of 1986, as added by this section) and the amount
of any credit determined under such section with respect to such bond
shall be treated for purposes of the income tax laws of such State as
being exempt from Federal income tax.
(e) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
PART V--REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX CREDIT
BOND CREDITS
SEC. 1541. REGULATED INVESTMENT COMPANIES ALLOWED TO PASS-THRU TAX
CREDIT BOND CREDITS.
(a) In General.--Part I of subchapter M of chapter 1 is amended by
inserting after section 853 the following new section:
``SEC. 853A. CREDITS FROM TAX CREDIT BONDS ALLOWED TO SHAREHOLDERS.
``(a) General Rule.--A regulated investment company--
``(1) which holds (directly or indirectly) one or more tax
credit bonds on one or more applicable dates during the taxable
year, and
``(2) which meets the requirements of section 852(a) for the
taxable year,
may elect the application of this section with respect to credits
allowable to the investment company during such taxable year with
respect to such bonds.
``(b) Effect of Election.--If the election provided in subsection
(a) is in effect for any taxable year--
``(1) the regulated investment company shall not be allowed any
credits to which subsection (a) applies for such taxable year,
``(2) the regulated investment company shall--
``(A) include in gross income (as interest) for such
taxable year an amount equal to the amount that such investment
company would have included in gross income with respect to
such credits if this section did not apply, and
``(B) increase the amount of the dividends paid deduction
for such taxable year by the amount of such income, and
``(3) each shareholder of such investment company shall--
``(A) include in gross income an amount equal to such
shareholder's proportionate share of the interest income
attributable to such credits, and
``(B) be allowed the shareholder's proportionate share of
such credits against the tax imposed by this chapter.
``(c) Notice to Shareholders.--For purposes of subsection (b)(3),
the shareholder's proportionate share of--
``(1) credits described in subsection (a), and
``(2) gross income in respect of such credits,
shall not exceed the amounts so designated by the regulated investment
company in a written notice mailed to its shareholders not later than
60 days after the close of its taxable year.
``(d) Manner of Making Election and Notifying Shareholders.--The
election provided in subsection (a) and the notice to shareholders
required by subsection (c) shall be made in such manner as the
Secretary may prescribe.
``(e) Definitions and Special Rules.--
``(1) Definitions.--For purposes of this subsection--
``(A) Tax credit bond.--The term `tax credit bond' means--
``(i) a qualified tax credit bond (as defined in
section 54A(d)),
``(ii) a build America bond (as defined in section
54AA(d)), and
``(iii) any bond for which a credit is allowable under
subpart H of part IV of subchapter A of this chapter.
``(B) Applicable date.--The term `applicable date' means--
``(i) in the case of a qualified tax credit bond or a
bond described in subparagraph (A)(iii), any credit
allowance date (as defined in section 54A(e)(1)), and
``(ii) in the case of a build America bond (as defined
in section 54AA(d)), any interest payment date (as defined
in section 54AA(e)).
``(2) Stripped tax credit bonds.--If the ownership of a tax
credit bond is separated from the credit with respect to such bond,
subsection (a) shall be applied by reference to the instruments
evidencing the entitlement to the credit rather than the tax credit
bond.
``(f) Regulations, etc.--The Secretary shall prescribe such
regulations or other guidance as may be necessary or appropriate to
carry out the purposes of this section, including methods for
determining a shareholder's proportionate share of credits.''.
(b) Conforming Amendments.--
(1) Section 54(l) is amended by striking paragraph (4) and by
redesignating paragraphs (5) and (6) as paragraphs (4) and (5),
respectively.
(2) Section 54A(h) is amended to read as follows:
``(h) Bonds Held by Real Estate Investment Trusts.--If any
qualified tax credit bond is held by a real estate investment trust,
the credit determined under subsection (a) shall be allowed to
beneficiaries of such trust (and any gross income included under
subsection (f) with respect to such credit shall be distributed to such
beneficiaries) under procedures prescribed by the Secretary.''.
(3) The table of sections for part I of subchapter M of chapter
1 is amended by inserting after the item relating to section 853
the following new item:
``Sec. 853A. Credits from tax credit bonds allowed to shareholders.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
Subtitle G--Other Provisions
SEC. 1601. APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED
WITH CERTAIN TAX-FAVORED BONDS.
Subchapter IV of chapter 31 of the title 40, United States Code,
shall apply to projects financed with the proceeds of--
(1) any new clean renewable energy bond (as defined in section
54C of the Internal Revenue Code of 1986) issued after the date of
the enactment of this Act,
(2) any qualified energy conservation bond (as defined in
section 54D of the Internal Revenue Code of 1986) issued after the
date of the enactment of this Act,
(3) any qualified zone academy bond (as defined in section 54E
of the Internal Revenue Code of 1986) issued after the date of the
enactment of this Act,
(4) any qualified school construction bond (as defined in
section 54F of the Internal Revenue Code of 1986), and
(5) any recovery zone economic development bond (as defined in
section 1400U-2 of the Internal Revenue Code of 1986).
SEC. 1602. GRANTS TO STATES FOR LOW-INCOME HOUSING PROJECTS IN LIEU OF
LOW-INCOME HOUSING CREDIT ALLOCATIONS FOR 2009.
(a) In General.--The Secretary of the Treasury shall make a grant
to the housing credit agency of each State in an amount equal to such
State's low-income housing grant election amount.
(b) Low-Income Housing Grant Election Amount.--For purposes of this
section, the term ``low-income housing grant election amount'' means,
with respect to any State, such amount as the State may elect which
does not exceed 85 percent of the product of--
(1) the sum of--
(A) 100 percent of the State housing credit ceiling for
2009 which is attributable to amounts described in clauses (i)
and (iii) of section 42(h)(3)(C) of the Internal Revenue Code
of 1986, and
(B) 40 percent of the State housing credit ceiling for 2009
which is attributable to amounts described in clauses (ii) and
(iv) of such section, multiplied by
(2) 10.
(c) Subawards for Low-Income Buildings.--
(1) In general.--A State housing credit agency receiving a
grant under this section shall use such grant to make subawards to
finance the construction or acquisition and rehabilitation of
qualified low-income buildings. A subaward under this section may
be made to finance a qualified low-income building with or without
an allocation under section 42 of the Internal Revenue Code of
1986, except that a State housing credit agency may make subawards
to finance qualified low-income buildings without an allocation
only if it makes a determination that such use will increase the
total funds available to the State to build and rehabilitate
affordable housing. In complying with such determination
requirement, a State housing credit agency shall establish a
process in which applicants that are allocated credits are required
to demonstrate good faith efforts to obtain investment commitments
for such credits before the agency makes such subawards.
(2) Subawards subject to same requirements as low-income
housing credit allocations.--Any such subaward with respect to any
qualified low-income building shall be made in the same manner and
shall be subject to the same limitations (including rent, income,
and use restrictions on such building) as an allocation of housing
credit dollar amount allocated by such State housing credit agency
under section 42 of the Internal Revenue Code of 1986, except that
such subawards shall not be limited by, or otherwise affect (except
as provided in subsection (h)(3)(J) of such section), the State
housing credit ceiling applicable to such agency.
(3) Compliance and asset management.--The State housing credit
agency shall perform asset management functions to ensure
compliance with section 42 of the Internal Revenue Code of 1986 and
the long-term viability of buildings funded by any subaward under
this section. The State housing credit agency may collect
reasonable fees from a subaward recipient to cover expenses
associated with the performance of its duties under this paragraph.
The State housing credit agency may retain an agent or other
private contractor to satisfy the requirements of this paragraph.
(4) Recapture.--The State housing credit agency shall impose
conditions or restrictions, including a requirement providing for
recapture, on any subaward under this section so as to assure that
the building with respect to which such subaward is made remains a
qualified low-income building during the compliance period. Any
such recapture shall be payable to the Secretary of the Treasury
for deposit in the general fund of the Treasury and may be enforced
by means of liens or such other methods as the Secretary of the
Treasury determines appropriate.
(d) Return of Unused Grant Funds.--Any grant funds not used to make
subawards under this section before January 1, 2011, shall be returned
to the Secretary of the Treasury on such date. Any subawards returned
to the State housing credit agency on or after such date shall be
promptly returned to the Secretary of the Treasury. Any amounts
returned to the Secretary of the Treasury under this subsection shall
be deposited in the general fund of the Treasury.
(e) Definitions.--Any term used in this section which is also used
in section 42 of the Internal Revenue Code of 1986 shall have the same
meaning for purposes of this section as when used in such section 42.
Any reference in this section to the Secretary of the Treasury shall be
treated as including the Secretary's delegate.
(f) Appropriations.--There is hereby appropriated to the Secretary
of the Treasury such sums as may be necessary to carry out this
section.
SEC. 1603. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF TAX CREDITS.
(a) In General.--Upon application, the Secretary of the Treasury
shall, subject to the requirements of this section, provide a grant to
each person who places in service specified energy property to
reimburse such person for a portion of the expense of such property as
provided in subsection (b). No grant shall be made under this section
with respect to any property unless such property--
(1) is placed in service during 2009 or 2010, or
(2) is placed in service after 2010 and before the credit
termination date with respect to such property, but only if the
construction of such property began during 2009 or 2010.
(b) Grant Amount.--
(1) In general.--The amount of the grant under subsection (a)
with respect to any specified energy property shall be the
applicable percentage of the basis of such property.
(2) Applicable percentage.--For purposes of paragraph (1), the
term ``applicable percentage'' means--
(A) 30 percent in the case of any property described in
paragraphs (1) through (4) of subsection (d), and
(B) 10 percent in the case of any other property.
(3) Dollar limitations.--In the case of property described in
paragraph (2), (6), or (7) of subsection (d), the amount of any
grant under this section with respect to such property shall not
exceed the limitation described in section 48(c)(1)(B),
48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986,
respectively, with respect to such property.
(c) Time for Payment of Grant.--The Secretary of the Treasury shall
make payment of any grant under subsection (a) during the 60-day period
beginning on the later of--
(1) the date of the application for such grant, or
(2) the date the specified energy property for which the grant
is being made is placed in service.
(d) Specified Energy Property.--For purposes of this section, the
term ``specified energy property'' means any of the following:
(1) Qualified facilities.--Any qualified property (as defined
in section 48(a)(5)(D) of the Internal Revenue Code of 1986) which
is part of a qualified facility (within the meaning of section 45
of such Code) described in paragraph (1), (2), (3), (4), (6), (7),
(9), or (11) of section 45(d) of such Code.
(2) Qualified fuel cell property.--Any qualified fuel cell
property (as defined in section 48(c)(1) of such Code).
(3) Solar property.--Any property described in clause (i) or
(ii) of section 48(a)(3)(A) of such Code.
(4) Qualified small wind energy property.--Any qualified small
wind energy property (as defined in section 48(c)(4) of such Code).
(5) Geothermal property.--Any property described in clause
(iii) of section 48(a)(3)(A) of such Code.
(6) Qualified microturbine property.--Any qualified
microturbine property (as defined in section 48(c)(2) of such
Code).
(7) Combined heat and power system property.--Any combined heat
and power system property (as defined in section 48(c)(3) of such
Code).
(8) Geothermal heat pump property.--Any property described in
clause (vii) of section 48(a)(3)(A) of such Code.
Such term shall not include any property unless depreciation (or
amortization in lieu of depreciation) is allowable with respect to such
property.
(e) Credit Termination Date.--For purposes of this section, the
term ``credit termination date'' means--
(1) in the case of any specified energy property which is part
of a facility described in paragraph (1) of section 45(d) of the
Internal Revenue Code of 1986, January 1, 2013,
(2) in the case of any specified energy property which is part
of a facility described in paragraph (2), (3), (4), (6), (7), (9),
or (11) of section 45(d) of such Code, January 1, 2014, and
(3) in the case of any specified energy property described in
section 48 of such Code, January 1, 2017.
In the case of any property which is described in paragraph (3) and
also in another paragraph of this subsection, paragraph (3) shall apply
with respect to such property.
(f) Application of Certain Rules.--In making grants under this
section, the Secretary of the Treasury shall apply rules similar to the
rules of section 50 of the Internal Revenue Code of 1986. In applying
such rules, if the property is disposed of, or otherwise ceases to be
specified energy property, the Secretary of the Treasury shall provide
for the recapture of the appropriate percentage of the grant amount in
such manner as the Secretary of the Treasury determines appropriate.
(g) Exception for Certain Non-Taxpayers.--The Secretary of the
Treasury shall not make any grant under this section to--
(1) any Federal, State, or local government (or any political
subdivision, agency, or instrumentality thereof),
(2) any organization described in section 501(c) of the
Internal Revenue Code of 1986 and exempt from tax under section
501(a) of such Code,
(3) any entity referred to in paragraph (4) of section 54(j) of
such Code, or
(4) any partnership or other pass-thru entity any partner (or
other holder of an equity or profits interest) of which is
described in paragraph (1), (2) or (3).
(h) Definitions.--Terms used in this section which are also used in
section 45 or 48 of the Internal Revenue Code of 1986 shall have the
same meaning for purposes of this section as when used in such section
45 or 48. Any reference in this section to the Secretary of the
Treasury shall be treated as including the Secretary's delegate.
(i) Appropriations.--There is hereby appropriated to the Secretary
of the Treasury such sums as may be necessary to carry out this
section.
(j) Termination.--The Secretary of the Treasury shall not make any
grant to any person under this section unless the application of such
person for such grant is received before October 1, 2011.
SEC. 1604. INCREASE IN PUBLIC DEBT LIMIT.
Subsection (b) of section 3101 of title 31, United States Code, is
amended by striking out the dollar limitation contained in such
subsection and inserting ``$12,104,000,000,000''.
Subtitle H--Prohibition on Collection of Certain Payments Made Under
the Continued Dumping and Subsidy Offset Act of 2000
SEC. 1701. PROHIBITION ON COLLECTION OF CERTAIN PAYMENTS MADE UNDER THE
CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000.
(a) In General.--Notwithstanding any other provision of law,
neither the Secretary of Homeland Security nor any other person may--
(1) require repayment of, or attempt in any other way to
recoup, any payments described in subsection (b); or
(2) offset any past, current, or future distributions of
antidumping or countervailing duties assessed with respect to
imports from countries that are not parties to the North American
Free Trade Agreement in an attempt to recoup any payments described
in subsection (b).
(b) Payments Described.--Payments described in this subsection are
payments of antidumping or countervailing duties made pursuant to the
Continued Dumping and Subsidy Offset Act of 2000 (section 754 of the
Tariff Act of 1930 (19 U.S.C. 1675c; repealed by subtitle F of title
VII of the Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat.
154))) that were--
(1) assessed and paid on imports of goods from countries that
are parties to the North American Free Trade Agreement; and
(2) distributed on or after January 1, 2001, and before January
1, 2006.
(c) Payment of Funds Collected or Withheld.--Not later than the
date that is 60 days after the date of the enactment of this Act, the
Secretary of Homeland Security shall--
(1) refund any repayments, or any other recoupment, of payments
described in subsection (b); and
(2) fully distribute any antidumping or countervailing duties
that the U.S. Customs and Border Protection is withholding as an
offset as described in subsection (a)(2).
(d) Limitation.--Nothing in this section shall be construed to
prevent the Secretary of Homeland Security, or any other person, from
requiring repayment of, or attempting to otherwise recoup, any payments
described in subsection (b) as a result of--
(1) a finding of false statements or other misconduct by a
recipient of such a payment; or
(2) the reliquidation of an entry with respect to which such a
payment was made.
Subtitle I--Trade Adjustment Assistance
SEC. 1800. SHORT TITLE.
This subtitle may be cited as the ``Trade and Globalization
Adjustment Assistance Act of 2009''.
PART I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS
Subpart A--Trade Adjustment Assistance for Service Sector Workers
SEC. 1801. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE TO SERVICE SECTOR
AND PUBLIC AGENCY WORKERS; SHIFTS IN PRODUCTION.
(a) Definitions.--Section 247 of the Trade Act of 1974 (19 U.S.C.
2319) is amended--
(1) in paragraph (1)--
(A) by striking ``or appropriate subdivision of a firm'';
and
(B) by striking ``or subdivision'';
(2) in paragraph (2), by striking ``employment--'' and all that
follows and inserting ``employment, has been totally or partially
separated from such employment.'';
(3) by inserting after paragraph (2) the following:
``(3) Subject to section 222(d)(5), the term `firm' means--
``(A) a firm, including an agricultural firm, service
sector firm, or public agency; or
``(B) an appropriate subdivision thereof.'';
(4) by inserting after paragraph (6) the following:
``(7) The term `public agency' means a department or agency of
a State or local government or of the Federal Government, or a
subdivision thereof.'';
(5) in paragraph (11), by striking ``, or in a subdivision of
which,''; and
(6) by adding at the end the following:
``(18) The term `service sector firm' means a firm engaged in
the business of supplying services.''.
(b) Group Eligibility Requirements.--Section 222 of the Trade Act
of 1974 (19 U.S.C. 2272) is amended--
(1) in subsection (a)(2)--
(A) by amending subparagraph (A)(ii) to read as follows:
``(ii)(I) imports of articles or services like or directly
competitive with articles produced or services supplied by such
firm have increased;
``(II) imports of articles like or directly competitive with
articles--
``(aa) into which one or more component parts produced by
such firm are directly incorporated, or
``(bb) which are produced directly using services supplied
by such firm,
have increased; or
``(III) imports of articles directly incorporating one or more
component parts produced outside the United States that are like or
directly competitive with imports of articles incorporating one or
more component parts produced by such firm have increased; and'';
and
(B) by amending subparagraph (B) to read as follows:
``(B)(i)(I) there has been a shift by such workers' firm to a
foreign country in the production of articles or the supply of
services like or directly competitive with articles which are
produced or services which are supplied by such firm; or
``(II) such workers' firm has acquired from a foreign country
articles or services that are like or directly competitive with
articles which are produced or services which are supplied by such
firm; and
``(ii) the shift described in clause (i)(I) or the acquisition
of articles or services described in clause (i)(II) contributed
importantly to such workers' separation or threat of separation.'';
(2) by redesignating subsections (b) and (c) as subsections (c)
and (d), respectively; and
(3) by inserting after subsection (a) the following:
``(b) Adversely Affected Workers in Public Agencies.--A group of
workers in a public agency shall be certified by the Secretary as
eligible to apply for adjustment assistance under this chapter pursuant
to a petition filed under section 221 if the Secretary determines
that--
``(1) a significant number or proportion of the workers in the
public agency have become totally or partially separated, or are
threatened to become totally or partially separated;
``(2) the public agency has acquired from a foreign country
services like or directly competitive with services which are
supplied by such agency; and
``(3) the acquisition of services described in paragraph (2)
contributed importantly to such workers' separation or threat of
separation.''.
(c) Basis for Secretary's Determinations.--Section 222 of the Trade
Act of 1974 (19 U.S.C. 2272), as amended, is further amended by adding
at the end the following:
``(e) Basis for Secretary's Determinations.--
``(1) In general.--The Secretary shall, in determining whether
to certify a group of workers under section 223, obtain from the
workers' firm, or a customer of the workers' firm, information the
Secretary determines to be necessary to make the certification,
through questionnaires and in such other manner as the Secretary
determines appropriate.
``(2) Additional information.--The Secretary may seek
additional information to determine whether to certify a group of
workers under subsection (a), (b), or (c)--
``(A) by contacting--
``(i) officials or employees of the workers' firm;
``(ii) officials of customers of the workers' firm;
``(iii) officials of certified or recognized unions or
other duly authorized representatives of the group of
workers; or
``(iv) one-stop operators or one-stop partners (as
defined in section 101 of the Workforce Investment Act of
1998 (29 U.S.C. 2801)); or
``(B) by using other available sources of information.
``(3) Verification of information.--
``(A) Certification.--The Secretary shall require a firm or
customer to certify--
``(i) all information obtained under paragraph (1) from
the firm or customer (as the case may be) through
questionnaires; and
``(ii) all other information obtained under paragraph
(1) from the firm or customer (as the case may be) on which
the Secretary relies in making a determination under
section 223, unless the Secretary has a reasonable basis
for determining that such information is accurate and
complete without being certified.
``(B) Use of subpoenas.--The Secretary shall require the
workers' firm or a customer of the workers' firm to provide
information requested by the Secretary under paragraph (1) by
subpoena pursuant to section 249 if the firm or customer (as
the case may be) fails to provide the information within 20
days after the date of the Secretary's request, unless the firm
or customer (as the case may be) demonstrates to the
satisfaction of the Secretary that the firm or customer (as the
case may be) will provide the information within a reasonable
period of time.
``(C) Protection of confidential information.--The
Secretary may not release information obtained under paragraph
(1) that the Secretary considers to be confidential business
information unless the firm or customer (as the case may be)
submitting the confidential business information had notice, at
the time of submission, that the information would be released
by the Secretary, or the firm or customer (as the case may be)
subsequently consents to the release of the information.
Nothing in this subparagraph shall be construed to prohibit the
Secretary from providing such confidential business information
to a court in camera or to another party under a protective
order issued by a court.''.
(d) Penalties.--Section 244 of the Trade Act of 1974 (19 U.S.C.
2316) is amended to read as follows:
``SEC. 244. PENALTIES.
``Any person who--
``(1) makes a false statement of a material fact knowing it to
be false, or knowingly fails to disclose a material fact, for the
purpose of obtaining or increasing for that person or for any other
person any payment authorized to be furnished under this chapter or
pursuant to an agreement under section 239, or
``(2) makes a false statement of a material fact knowing it to
be false, or knowingly fails to disclose a material fact, when
providing information to the Secretary during an investigation of a
petition under section 221,
shall be imprisoned for not more than one year, or fined under title
18, United States Code, or both.''.
(e) Conforming Amendments.--
(1) Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a))
is amended--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A)--
(I) by striking ``Secretary'' and inserting
``Secretary of Labor''; and
(II) by striking ``or subdivision'' and inserting
``(as defined in section 247)''; and
(ii) in subparagraph (A), by striking ``(including
workers in an agricultural firm or subdivision of any
agricultural firm)'';
(B) in paragraph (2)(A), by striking ``rapid response
assistance'' and inserting ``rapid response activities''; and
(C) in paragraph (3), by inserting ``and on the website of
the Department of Labor'' after ``Federal Register''.
(2) Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as
amended, is further amended--
(A) by striking ``(including workers in any agricultural
firm or subdivision of an agricultural firm)'' each place it
appears;
(B) in subsection (a)--
(i) in paragraph (1), by striking ``, or an appropriate
subdivision of the firm,''; and
(ii) in paragraph (2), by striking ``or subdivision''
each place it appears;
(C) in subsection (c) (as redesignated)--
(i) in paragraph (2)--
(I) by striking ``(or subdivision)'' each place it
appears;
(II) by inserting ``or service'' after ``the
article''; and
(III) by striking ``(c) (3)'' and inserting ``(d)
(3)''; and
(ii) in paragraph (3), by striking ``(or subdivision)''
each place it appears; and
(D) in subsection (d) (as redesignated)--
(i) by striking ``For purposes'' and inserting
``Definitions.--For purposes'';
(ii) in paragraph (2), by striking ``, or appropriate
subdivision of a firm,'' each place it appears;
(iii) by amending paragraph (3) to read as follows:
``(3) Downstream producer.--
``(A) In general.--The term `downstream producer' means a
firm that performs additional, value-added production processes
or services directly for another firm for articles or services
with respect to which a group of workers in such other firm has
been certified under subsection (a).
``(B) Value-added production processes or services.--For
purposes of subparagraph (A), value-added production processes
or services include final assembly, finishing, testing,
packaging, or maintenance or transportation services.'';
(iv) in paragraph (4)--
(I) by striking ``(or subdivision)''; and
(II) by inserting ``, or services, used in the
production of articles or in the supply of services, as
the case may be,'' after ``for articles''; and
(v) by adding at the end the following:
``(5) Reference to firm.--For purposes of subsection (a), the
term `firm' does not include a public agency.''.
(3) Section 231(a)(2) of the Trade Act of 1974 (19 U.S.C.
2291(a)(2)) is amended--
(A) in the matter preceding subparagraph (A), by striking
``or subdivision of a firm''; and
(B) in subparagraph (C), by striking ``or subdivision''.
SEC. 1802. SEPARATE BASIS FOR CERTIFICATION.
Section 222 of the Trade Act of 1974 (19 U.S.C. 2272), as amended,
is further amended by adding at the end the following:
``(f) Firms Identified by the International Trade Commission.--
Notwithstanding any other provision of this chapter, a group of workers
covered by a petition filed under section 221 shall be certified under
subsection (a) as eligible to apply for adjustment assistance under
this chapter if--
``(1) the workers' firm is publicly identified by name by the
International Trade Commission as a member of a domestic industry
in an investigation resulting in--
``(A) an affirmative determination of serious injury or
threat thereof under section 202(b)(1);
``(B) an affirmative determination of market disruption or
threat thereof under section 421(b)(1); or
``(C) an affirmative final determination of material injury
or threat thereof under section 705(b)(1)(A) or 735(b)(1)(A) of
the Tariff Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and
1673d(b)(1)(A));
``(2) the petition is filed during the one-year period
beginning on the date on which--
``(A) a summary of the report submitted to the President by
the International Trade Commission under section 202(f)(1) with
respect to the affirmative determination described in paragraph
(1)(A) is published in the Federal Register under section
202(f)(3); or
``(B) notice of an affirmative determination described in
subparagraph (B) or (C) of paragraph (1) is published in the
Federal Register; and
``(3) the workers have become totally or partially separated
from the workers' firm within--
``(A) the one-year period described in paragraph (2); or
``(B) notwithstanding section 223(b), the one-year period
preceding the one-year period described in paragraph (2).''.
SEC. 1803. DETERMINATIONS BY SECRETARY OF LABOR.
Section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is amended--
(1) in subsection (b), by striking ``or appropriate subdivision
of the firm before his application'' and all that follows and
inserting ``before the worker's application under section 231
occurred more than one year before the date of the petition on
which such certification was granted.'';
(2) in subsection (c), by striking ``together with his
reasons'' and inserting ``and on the website of the Department of
Labor, together with the Secretary's reasons'';
(3) in subsection (d)--
(A) by striking ``or subdivision of the firm'' and all that
follows through ``he shall'' and inserting ``, that total or
partial separations from such firm are no longer attributable
to the conditions specified in section 222, the Secretary
shall''; and
(B) by striking ``together with his reasons'' and inserting
``and on the website of the Department of Labor, together with
the Secretary's reasons''; and
(4) by adding at the end the following:
``(e) Standards for Investigations and Determinations.--
``(1) In general.--The Secretary shall establish standards,
including data requirements, for investigations of petitions filed
under section 221 and criteria for making determinations under
subsection (a).
``(2) Consultations.--Not less than 90 days before issuing a
final rule with respect to the standards required under paragraph
(1), the Secretary shall consult with the Committee on Finance of
the Senate and the Committee on Ways and Means of the House of
Representatives with respect to such rule.''.
SEC. 1804. MONITORING AND REPORTING RELATING TO SERVICE SECTOR.
(a) In General.--Section 282 of the Trade Act of 1974 (19 U.S.C.
2393) is amended--
(1) in the heading, by striking ``system'' and inserting ``and
data collection'';
(2) in the first sentence--
(A) by striking ``The Secretary'' and inserting ``(a)
Monitoring Programs.--The Secretary'';
(B) by inserting ``and services'' after ``imports of
articles'';
(C) by inserting ``and domestic supply of services'' after
``domestic production'';
(D) by inserting ``or supplying services'' after
``producing articles''; and
(E) by inserting ``, or supply of services,'' after
``changes in production''; and
(3) by adding at the end the following:
``(b) Collection of Data and Reports on Service Sector.--
``(1) Secretary of labor.--Not later than 90 days after the
date of the enactment of this subsection, the Secretary of Labor
shall implement a system to collect data on adversely affected
workers employed in the service sector that includes the number of
workers by State and industry, and by the cause of the dislocation
of each worker, as identified in the certification.
``(2) Secretary of commerce.--Not later than 1 year after such
date of enactment, the Secretary of Commerce shall, in consultation
with the Secretary of Labor, conduct a study and submit to the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives a report on ways to improve
the timeliness and coverage of data on trade in services, including
methods to identify increased imports due to the relocation of
United States firms to foreign countries, and increased imports due
to United States firms acquiring services from firms in foreign
countries.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 282 and
inserting the following:
``Sec. 282. Trade monitoring and data collection.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
Subpart B--Industry Notifications Following Certain Affirmative
Determinations
SEC. 1811. NOTIFICATIONS FOLLOWING CERTAIN AFFIRMATIVE DETERMINATIONS.
(a) In General.--Section 224 of the Trade Act of 1974 (19 U.S.C.
2274) is amended--
(1) by amending the heading to read as follows:
``SEC. 224. STUDY AND NOTIFICATIONS REGARDING CERTAIN AFFIRMATIVE
DETERMINATIONS; INDUSTRY NOTIFICATION OF ASSISTANCE.'';
(2) in subsection (a), by striking ``Whenever'' and inserting
``Study of Domestic Industry.--Whenever'';
(3) in subsection (b)--
(A) by striking ``The report'' and inserting ``Report by
the Secretary.--The report''; and
(B) by inserting ``and on the website of the Department of
Labor'' after ``Federal Register''; and
(4) by adding at the end the following:
``(c) Notifications Following Affirmative Global Safeguard
Determinations.--Upon making an affirmative determination under section
202(b)(1), the Commission shall promptly notify the Secretary of Labor
and the Secretary of Commerce and, in the case of a determination with
respect to an agricultural commodity, the Secretary of Agriculture, of
the determination.
``(d) Notifications Following Affirmative Bilateral or Plurilateral
Safeguard Determinations.--
``(1) Notifications of determinations of market disruption.--
Upon making an affirmative determination under section 421(b)(1),
the Commission shall promptly notify the Secretary of Labor and the
Secretary of Commerce and, in the case of a determination with
respect to an agricultural commodity, the Secretary of Agriculture,
of the determination.
``(2) Notifications regarding trade agreement safeguards.--Upon
making an affirmative determination in a proceeding initiated under
an applicable safeguard provision (other than a provision described
in paragraph (3)) that is enacted to implement a trade agreement to
which the United States is a party, the Commission shall promptly
notify the Secretary of Labor and the Secretary of Commerce and, in
the case of a determination with respect to an agricultural
commodity, the Secretary of Agriculture, of the determination.
``(3) Notifications regarding textile and apparel safeguards.--
Upon making an affirmative determination in a proceeding initiated
under any safeguard provision relating to textile and apparel
articles that is enacted to implement a trade agreement to which
the United States is a party, the President shall promptly notify
the Secretary of Labor and the Secretary of Commerce of the
determination.
``(e) Notifications Following Certain Affirmative Determinations
Under Title Vii of the Tariff Act of 1930.--Upon making an affirmative
determination under section 705(b)(1)(A) or 735(b)(1)(A) of the Tariff
Act of 1930 (19 U.S.C. 1671d(b)(1)(A) and 1673d(b)(1)(A)), the
Commission shall promptly notify the Secretary of Labor and the
Secretary of Commerce and, in the case of a determination with respect
to an agricultural commodity, the Secretary of Agriculture, of the
determination.
``(f) Industry Notification of Assistance.--Upon receiving a
notification of a determination under subsection (c), (d), or (e) with
respect to a domestic industry--
``(1) the Secretary of Labor shall--
``(A) notify the representatives of the domestic industry
affected by the determination, firms publicly identified by
name during the course of the proceeding relating to the
determination, and any certified or recognized union or, to the
extent practicable, other duly authorized representative of
workers employed by such representatives of the domestic
industry, of--
``(i) the allowances, training, employment services,
and other benefits available under this chapter;
``(ii) the manner in which to file a petition and apply
for such benefits; and
``(iii) the availability of assistance in filing such
petitions;
``(B) notify the Governor of each State in which one or
more firms in the industry described in subparagraph (A) are
located of the Commission's determination and the identity of
the firms; and
``(C) upon request, provide any assistance that is
necessary to file a petition under section 221;
``(2) the Secretary of Commerce shall--
``(A) notify the representatives of the domestic industry
affected by the determination and any firms publicly identified
by name during the course of the proceeding relating to the
determination of--
``(i) the benefits available under chapter 3;
``(ii) the manner in which to file a petition and apply
for such benefits; and
``(iii) the availability of assistance in filing such
petitions; and
``(B) upon request, provide any assistance that is
necessary to file a petition under section 251; and
``(3) in the case of an affirmative determination based upon
imports of an agricultural commodity, the Secretary of Agriculture
shall--
``(A) notify representatives of the domestic industry
affected by the determination and any agricultural commodity
producers publicly identified by name during the course of the
proceeding relating to the determination of--
``(i) the benefits available under chapter 6;
``(ii) the manner in which to file a petition and apply
for such benefits; and
``(iii) the availability of assistance in filing such
petitions; and
``(B) upon request, provide any assistance that is
necessary to file a petition under section 292.
``(g) Representatives of the Domestic Industry.--For purposes of
subsection (f), the term `representatives of the domestic industry'
means the persons that petitioned for relief in connection with--
``(1) a proceeding under section 202 or 421 of this Act;
``(2) a proceeding under section 702(b) or 732(b) of the Tariff
Act of 1930 (19 U.S.C. 1671d(b) and 1673d(b)); or
``(3) any safeguard investigation described in subsection
(d)(2) or (d)(3).''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 224 and
inserting the following:
``Sec. 224. Study and notifications regarding certain affirmative
determinations; industry notification of assistance.''.
SEC. 1812. NOTIFICATION TO SECRETARY OF COMMERCE.
Section 225 of the Trade Act of 1974 (19 U.S.C. 2275) is amended by
adding at the end the following:
``(c) Upon issuing a certification under section 223, the Secretary
shall notify the Secretary of Commerce of the identity of each firm
covered by the certification.''.
Subpart C--Program Benefits
SEC. 1821. QUALIFYING REQUIREMENTS FOR WORKERS.
(a) In General.--Section 231(a)(5)(A)(ii) of the Trade Act of 1974
(19 U.S.C. 2291 (a)(5)(A)(ii)) is amended--
(1) by striking subclauses (I) and (II) and inserting the
following:
``(I) in the case of a worker whose most recent total
separation from adversely affected employment that meets
the requirements of paragraphs (1) and (2) occurs after the
date on which the Secretary issues a certification covering
the worker, the last day of the 26th week after such total
separation,
``(II) in the case of a worker whose most recent total
separation from adversely affected employment that meets
the requirements of paragraphs (1) and (2) occurs before
the date on which the Secretary issues a certification
covering the worker, the last day of the 26th week after
the date of such certification,'';
(2) in subclause (III)--
(A) by striking ``later of the dates specified in subclause
(I) or (II)'' and inserting ``date specified in subclause (I)
or (II), as the case may be''; and
(B) by striking ``or'' at the end;
(3) by redesignating subclause (IV) as subclause (V); and
(4) by inserting after subclause (III) the following:
``(IV) in the case of a worker who fails to enroll by
the date required by subclause (I), (II), or (III), as the
case may be, due to the failure to provide the worker with
timely information regarding the date specified in such
subclause, the last day of a period determined by the
Secretary, or''.
(b) Waivers of Training Requirements.--Section 231(c) of the Trade
Act of 1974 (19 U.S.C. 2291(c)) is amended--
(1) in paragraph (1)(B)--
(A) by striking ``The worker possesses'' and inserting the
following:
``(i) In general.--The worker possesses''; and
(B) by adding at the end the following:
``(ii) Marketable skills defined.--For purposes of
clause (i), the term `marketable skills' may include the
possession of a postgraduate degree from an institution of
higher education (as defined in section 102 of the Higher
Education Act of 1965 (20 U.S.C. 1002)) or an equivalent
institution, or the possession of an equivalent
postgraduate certification in a specialized field.'';
(2) in paragraph (2)(A), by striking ``A waiver'' and inserting
``Except as provided in paragraph (3)(B), a waiver''; and
(3) in paragraph (3)--
(A) in subparagraph (A), by striking ``Pursuant to an
agreement under section 239, the Secretary may authorize a''
and inserting ``An agreement under section 239 shall authorize
a'';
(B) by redesignating subparagraph (B) as subparagraph (C);
and
(C) by inserting after subparagraph (A) the following:
``(B) Review of waivers.--An agreement under section 239
shall require a cooperating State to review each waiver issued
by the State under subparagraph (A), (B), (D), (E), or (F) of
paragraph (1)--
``(i) 3 months after the date on which the State issues
the waiver; and
``(ii) on a monthly basis thereafter.''.
(c) Conforming Amendments.--
(1) Section 231 of the Trade Act of 1974 (19 U.S.C. 2291), as
amended, is further amended--
(A) in subsection (a), in the matter preceding paragraph
(1), by striking ``more than 60 days'' and all that follows
through ``section 221'' and inserting ``on or after the date of
such certification''; and
(B) in subsection (b)--
(i) by striking paragraph (2); and
(ii) in paragraph (1)--
(I) by striking ``(1)'';
(II) by redesignating subparagraphs (A) and (B) as
paragraphs (1) and (2), respectively;
(III) by redesignating clauses (i) and (ii) as
subparagraphs (A) and (B), respectively; and
(IV) by redesignating subclauses (I) and (II) as
clauses (i) and (ii), respectively.
(2) Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is
amended--
(A) by striking subsection (b); and
(B) by redesignating subsections (c) through (g) as
subsections (b) through (f), respectively.
SEC. 1822. WEEKLY AMOUNTS.
Section 232 of the Trade Act of 1974 (19 U.S.C. 2292) is amended--
(1) in subsection (a)--
(A) by striking ``subsections (b) and (c)'' and inserting
``subsections (b), (c), and (d)'';
(B) by striking ``total unemployment'' the first place it
appears and inserting ``unemployment''; and
(C) in paragraph (2), by inserting before the period the
following: ``, except that in the case of an adversely affected
worker who is participating in training under this chapter,
such income shall not include earnings from work for such week
that are equal to or less than the most recent weekly benefit
amount of the unemployment insurance payable to the worker for
a week of total unemployment preceding the worker's first
exhaustion of unemployment insurance (as determined for
purposes of section 231(a)(3)(B))''; and
(2) by adding at the end the following:
``(d) Election of Trade Readjustment Allowance or Unemployment
Insurance.--Notwithstanding section 231(a)(3)(B), an adversely affected
worker may elect to receive a trade readjustment allowance instead of
unemployment insurance during any week with respect to which the
worker--
``(1) is entitled to receive unemployment insurance as a result
of the establishment by the worker of a new benefit year under
State law, based in whole or in part upon part-time or short-term
employment in which the worker engaged after the worker's most
recent total separation from adversely affected employment; and
``(2) is otherwise entitled to a trade readjustment
allowance.''.
SEC. 1823. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES; ALLOWANCES FOR
EXTENDED TRAINING AND BREAKS IN TRAINING.
Section 233(a) of the Trade Act of 1974 (19 U.S.C. 2293(a)) is
amended--
(1) in paragraph (2), by inserting ``under paragraph (1)''
after ``trade readjustment allowance''; and
(2) in paragraph (3)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``training approved for him'' and
inserting ``a training program approved for the worker'';
(ii) by striking ``52 additional weeks'' and inserting
``78 additional weeks''; and
(iii) by striking ``52-week'' and inserting ``91-
week''; and
(B) in the matter following subparagraph (B), by striking
``52-week'' and inserting ``91-week''.
SEC. 1824. SPECIAL RULES FOR CALCULATION OF ELIGIBILITY PERIOD.
Section 233 of the Trade Act of 1974 (19 U.S.C. 2293), as amended,
is further amended by adding at the end the following:
``(g) Special Rule for Calculating Separation.--Notwithstanding any
other provision of this chapter, any period during which a judicial or
administrative appeal is pending with respect to the denial by the
Secretary of a petition under section 223 shall not be counted for
purposes of calculating the period of separation under subsection
(a)(2).
``(h) Special Rule for Justifiable Cause.--If the Secretary
determines that there is justifiable cause, the Secretary may extend
the period during which trade readjustment allowances are payable to an
adversely affected worker under paragraphs (2) and (3) of subsection
(a) (but not the maximum amounts of such allowances that are payable
under this section).
``(i) Special Rule With Respect to Military Service.--
``(1) In general.--Notwithstanding any other provision of this
chapter, the Secretary may waive any requirement of this chapter
that the Secretary determines is necessary to ensure that an
adversely affected worker who is a member of a reserve component of
the Armed Forces and serves a period of duty described in paragraph
(2) is eligible to receive a trade readjustment allowance,
training, and other benefits under this chapter in the same manner
and to the same extent as if the worker had not served the period
of duty.
``(2) Period of duty described.--An adversely affected worker
serves a period of duty described in this paragraph if, before
completing training under section 236, the worker--
``(A) serves on active duty for a period of more than 30
days under a call or order to active duty of more than 30 days;
or
``(B) in the case of a member of the Army National Guard of
the United States or Air National Guard of the United States,
performs full-time National Guard duty under section 502(f) of
title 32, United States Code, for 30 consecutive days or more
when authorized by the President or the Secretary of Defense
for the purpose of responding to a national emergency declared
by the President and supported by Federal funds.''.
SEC. 1825. APPLICATION OF STATE LAWS AND REGULATIONS ON GOOD CAUSE FOR
WAIVER OF TIME LIMITS OR LATE FILING OF CLAIMS.
Section 234 of the Trade Act of 1974 (19 U.S.C. 2294) is amended--
(1) by striking ``Except where inconsistent'' and inserting
``(a) In General.--Except where inconsistent''; and
(2) by adding at the end the following:
``(b) Special Rule With Respect to State Laws and Regulations on
Good Cause for Waiver of Time Limits or Late Filing of Claims.--Any
law, regulation, policy, or practice of a cooperating State that allows
for a waiver for good cause of any time limitation relating to the
administration of the State unemployment insurance law shall, in the
administration of the program under this chapter by the State, apply to
any time limitation with respect to an application for a trade
readjustment allowance or enrollment in training under this chapter.''.
SEC. 1826. EMPLOYMENT AND CASE MANAGEMENT SERVICES.
(a) In General.--Section 235 of the Trade Act of 1974 (19 U.S.C.
2295) is amended to read as follows:
``SEC. 235. EMPLOYMENT AND CASE MANAGEMENT SERVICES.
``The Secretary shall make available, directly or through
agreements with States under section 239, to adversely affected workers
and adversely affected incumbent workers covered by a certification
under subchapter A of this chapter the following employment and case
management services:
``(1) Comprehensive and specialized assessment of skill levels
and service needs, including through--
``(A) diagnostic testing and use of other assessment tools;
and
``(B) in-depth interviewing and evaluation to identify
employment barriers and appropriate employment goals.
``(2) Development of an individual employment plan to identify
employment goals and objectives, and appropriate training to
achieve those goals and objectives.
``(3) Information on training available in local and regional
areas, information on individual counseling to determine which
training is suitable training, and information on how to apply for
such training.
``(4) Information on how to apply for financial aid, including
referring workers to educational opportunity centers described in
section 402F of the Higher Education Act of 1965 (20 U.S.C. 1070a-
16), where applicable, and notifying workers that the workers may
request financial aid administrators at institutions of higher
education (as defined in section 102 of such Act (20 U.S.C. 1002))
to use the administrators' discretion under section 479A of such
Act (20 U.S.C. 1087tt) to use current year income data, rather than
preceding year income data, for determining the amount of need of
the workers for Federal financial assistance under title IV of such
Act (20 U.S.C. 1070 et seq.).
``(5) Short-term prevocational services, including development
of learning skills, communications skills, interviewing skills,
punctuality, personal maintenance skills, and professional conduct
to prepare individuals for employment or training.
``(6) Individual career counseling, including job search and
placement counseling, during the period in which the individual is
receiving a trade adjustment allowance or training under this
chapter, and after receiving such training for purposes of job
placement.
``(7) Provision of employment statistics information, including
the provision of accurate information relating to local, regional,
and national labor market areas, including--
``(A) job vacancy listings in such labor market areas;
``(B) information on jobs skills necessary to obtain jobs
identified in job vacancy listings described in subparagraph
(A);
``(C) information relating to local occupations that are in
demand and earnings potential of such occupations; and
``(D) skills requirements for local occupations described
in subparagraph (C).
``(8) Information relating to the availability of supportive
services, including services relating to child care,
transportation, dependent care, housing assistance, and need-
related payments that are necessary to enable an individual to
participate in training.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 235 and
inserting the following:
``235. Employment and case management services.''.
SEC. 1827. ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND CASE MANAGEMENT
SERVICES.
(a) In General.--Part II of subchapter B of chapter 2 of title II
of the Trade Act of 1974 (19 U.S.C. 2295 et seq.) is amended by
inserting after section 235 the following:
``SEC. 235A. FUNDING FOR ADMINISTRATIVE EXPENSES AND EMPLOYMENT AND
CASE MANAGEMENT SERVICES.
``(a) Funding for Administrative Expenses and Employment and Case
Management Services.--
``(1) In general.--In addition to any funds made available to a
State to carry out section 236 for a fiscal year, the State shall
receive for the fiscal year a payment in an amount that is equal to
15 percent of the amount of such funds.
``(2) Use of funds.--A State that receives a payment under
paragraph (1) shall--
``(A) use not more than \2/3\ of such payment for the
administration of the trade adjustment assistance for workers
program under this chapter, including for--
``(i) processing waivers of training requirements under
section 231;
``(ii) collecting, validating, and reporting data
required under this chapter; and
``(iii) providing reemployment trade adjustment
assistance under section 246; and
``(B) use not less than \1/3\ of such payment for
employment and case management services under section 235.
``(b) Additional Funding for Employment and Case Management
Services.--
``(1) In general.--In addition to any funds made available to a
State to carry out section 236 and the payment under subsection
(a)(1) for a fiscal year, the Secretary shall provide to the State
for the fiscal year a payment in the amount of $350,000.
``(2) Use of funds.--A State that receives a payment under
paragraph (1) shall use such payment for the purpose of providing
employment and case management services under section 235.
``(3) Voluntary return of funds.--A State that receives a
payment under paragraph (1) may decline or otherwise return such
payment to the Secretary.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by inserting after the item relating to section 235 the
following:
``Sec. 235A. Funding for administrative expenses and employment and case
management services.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 1828. TRAINING FUNDING.
(a) In General.--Section 236(a)(2) of the Trade Act of 1974 (19
U.S.C. 2296(a)(2)) is amended to read as follows:
``(2)(A) The total amount of payments that may be made under
paragraph (1) shall not exceed--
``(i) for each of the fiscal years 2009 and 2010, $575,000,000;
and
``(ii) for the period beginning October 1, 2010, and ending
December 31, 2010, $143,750,000.
``(B)(i) The Secretary shall, as soon as practicable after the
beginning of each fiscal year, make an initial distribution of the
funds made available to carry out this section, in accordance with the
requirements of subparagraph (C).
``(ii) The Secretary shall ensure that not less than 90 percent of
the funds made available to carry out this section for a fiscal year
are distributed to the States by not later than July 15 of that fiscal
year.
``(C)(i) In making the initial distribution of funds pursuant to
subparagraph (B)(i) for a fiscal year, the Secretary shall hold in
reserve 35 percent of the funds made available to carry out this
section for that fiscal year for additional distributions during the
remainder of the fiscal year.
``(ii) Subject to clause (iii), in determining how to apportion the
initial distribution of funds pursuant to subparagraph (B)(i) in a
fiscal year, the Secretary shall take into account, with respect to
each State--
``(I) the trend in the number of workers covered by
certifications of eligibility under this chapter during the most
recent 4 consecutive calendar quarters for which data are
available;
``(II) the trend in the number of workers participating in
training under this section during the most recent 4 consecutive
calendar quarters for which data are available;
``(III) the number of workers estimated to be participating in
training under this section during the fiscal year;
``(IV) the amount of funding estimated to be necessary to
provide training approved under this section to such workers during
the fiscal year; and
``(V) such other factors as the Secretary considers appropriate
relating to the provision of training under this section.
``(iii) In no case may the amount of the initial distribution to a
State pursuant to subparagraph (B)(i) in a fiscal year be less than 25
percent of the initial distribution to the State in the preceding
fiscal year.
``(D) The Secretary shall establish procedures for the distribution
of the funds that remain available for the fiscal year after the
initial distribution required under subparagraph (B)(i). Such
procedures may include the distribution of funds pursuant to requests
submitted by States in need of such funds.
``(E) If, during a fiscal year, the Secretary estimates that the
amount of funds necessary to pay the costs of training approved under
this section will exceed the dollar amount limitation specified in
subparagraph (A), the Secretary shall decide how the amount of funds
made available to carry out this section that have not been distributed
at the time of the estimate will be apportioned among the States for
the remainder of the fiscal year.''.
(b) Determinations Regarding Training.--Section 236(a)(9) of the
Trade Act of 1974 (19 U.S.C. 2296(a)(9)) is amended--
(1) by striking ``The Secretary'' and inserting ``(A) Subject
to subparagraph (B), the Secretary''; and
(2) by adding at the end the following:
``(B)(i) In determining under paragraph (1)(E) whether a worker is
qualified to undertake and complete training, the Secretary may approve
training for a period longer than the worker's period of eligibility
for trade readjustment allowances under part I if the worker
demonstrates a financial ability to complete the training after the
expiration of the worker's period of eligibility for such trade
readjustment allowances.
``(ii) In determining the reasonable cost of training under
paragraph (1)(F) with respect to a worker, the Secretary may consider
whether other public or private funds are reasonably available to the
worker, except that the Secretary may not require a worker to obtain
such funds as a condition of approval of training under paragraph
(1).''.
(c) Regulations.--Section 236 of the Trade Act of 1974 (19 U.S.C.
2296) is amended by adding at the end the following:
``(g) Regulations With Respect to Apportionment of Training Funds
to States.--
``(1) In general.--Not later than 1 year after the date of the
enactment of this subsection, the Secretary shall issue such
regulations as may be necessary to carry out the provisions of
subsection (a)(2).
``(2) Consultations.--The Secretary shall consult with the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives not less than 90 days before
issuing any regulation pursuant to paragraph (1).''.
(d) Effective Date.--This section and the amendments made by this
section shall take effect upon the expiration of the 90-day period
beginning on the date of the enactment of this Act, except that--
(1) subparagraph (A) of section 236(a)(2) of the Trade Act of
1974, as amended by subsection (a) of this section, shall take
effect on the date of the enactment of this Act; and
(2) subparagraphs (B), (C), and (D) of such section 236(a)(2)
shall take effect on October 1, 2009.
SEC. 1829. PREREQUISITE EDUCATION; APPROVED TRAINING PROGRAMS.
(a) In General.--Section 236(a)(5) of the Trade Act of 1974 (19
U.S.C. 2296(a)(5)) is amended--
(1) in subparagraph (A)--
(A) by striking ``and'' at the end of clause (i);
(B) by adding ``and'' at the end of clause (ii); and
(C) by inserting after clause (ii) the following:
``(iii) apprenticeship programs registered under the Act of
August 16, 1937 (commonly known as the `National Apprenticeship
Act'; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),'';
(2) by redesignating subparagraphs (E) and (F) as subparagraphs
(F) and (G), respectively;
(3) by inserting after subparagraph (D) the following:
``(E) any program of prerequisite education or coursework
required to enroll in training that may be approved under this
section,'';
(4) in subparagraph (F)(ii), as redesignated by paragraph (2),
by striking ``and'' at the end;
(5) in subparagraph (G), as redesignated by paragraph (2), by
striking the period at the end and inserting ``, and''; and
(6) by adding at the end the following:
``(H) any training program or coursework at an accredited
institution of higher education (described in section 102 of the
Higher Education Act of 1965 (20 U.S.C. 1002)), including a
training program or coursework for the purpose of--
``(i) obtaining a degree or certification; or
``(ii) completing a degree or certification that the worker
had previously begun at an accredited institution of higher
education.
The Secretary may not limit approval of a training program under
paragraph (1) to a program provided pursuant to title I of the
Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).''.
(b) Conforming Amendments.--Section 233 of the Trade Act of 1974
(19 U.S.C. 2293) is amended--
(1) in subsection (a)(2), by inserting ``prerequisite education
or'' after ``requires a program of''; and
(2) in subsection (f) (as redesignated by section 1821(c) of
this subtitle), by inserting ``prerequisite education or'' after
``includes a program of''.
(c) Technical Corrections.--Section 236 of the Trade Act of 1974
(19 U.S.C. 2296) is amended--
(1) in subsection (a)--
(A) in paragraph (1), in the flush text, by striking ``his
behalf'' and inserting ``the worker's behalf''; and
(B) in paragraph (3), by striking ``this paragraph (1)''
and inserting ``paragraph (1)''; and
(2) in subsection (b)(2), by striking ``, and'' and inserting a
period.
SEC. 1830. PRE-LAYOFF AND PART-TIME TRAINING.
(a) Pre-Layoff Training.--
(1) In general.--Section 236(a) of the Trade Act of 1974 (19
U.S.C. 2296(a)) is amended--
(A) in paragraph (1), by inserting after ``determines'' the
following: ``, with respect to an adversely affected worker or
an adversely affected incumbent worker,'';
(B) in paragraph (4)--
(i) in subparagraphs (A) and (B), by inserting ``or an
adversely affected incumbent worker'' after ``an adversely
affected worker'' each place it appears; and
(ii) in subparagraph (C), by inserting ``or adversely
affected incumbent worker'' after ``adversely affected
worker'' each place it appears;
(C) in paragraph (5), in the matter preceding subparagraph
(A), by striking ``The training programs'' and inserting
``Except as provided in paragraph (10), the training
programs'';
(D) in paragraph (6)(B), by inserting ``or adversely
affected incumbent worker'' after ``adversely affected
worker'';
(E) in paragraph (7)(B), by inserting ``or adversely
affected incumbent worker'' after ``adversely affected
worker''; and
(F) by inserting after paragraph (9) the following:
``(10) In the case of an adversely affected incumbent worker, the
Secretary may not approve--
``(A) on-the-job training under paragraph (5)(A)(i); or
``(B) customized training under paragraph (5)(A)(ii), unless
such training is for a position other than the worker's adversely
affected employment.
``(11) If the Secretary determines that an adversely affected
incumbent worker for whom the Secretary approved training under this
section is no longer threatened with a total or partial separation, the
Secretary shall terminate the approval of such training.''.
(2) Definitions.--Section 247 of the Trade Act of 1974 (19
U.S.C. 2319), as amended, is further amended by adding at the end
the following:
``(19) The term `adversely affected incumbent worker' means a
worker who--
``(A) is a member of a group of workers who have been
certified as eligible to apply for adjustment assistance under
subchapter A;
``(B) has not been totally or partially separated from
adversely affected employment; and
``(C) the Secretary determines, on an individual basis, is
threatened with total or partial separation.''.
(b) Part-Time Training.--Section 236 of the Trade Act of 1974 (19
U.S.C. 2296), as amended, is further amended by adding at the end the
following:
``(h) Part-Time Training.--
``(1) In general.--The Secretary may approve full-time or part-
time training for a worker under subsection (a).
``(2) Limitation.--Notwithstanding paragraph (1), a worker
participating in part-time training approved under subsection (a)
may not receive a trade readjustment allowance under section
231.''.
SEC. 1831. ON-THE-JOB TRAINING.
(a) In General.--Section 236(c) of the Trade Act of 1974 (19 U.S.C.
2296(c)) is amended--
(1) by redesignating paragraphs (1) through (10) as
subparagraphs (A) through (J) and moving such subparagraphs 2 ems
to the right;
(2) by striking ``(c) The Secretary shall'' and all that
follows through ``such costs,'' and inserting the following:
``(c) On-the-Job Training Requirements.--
``(1) In general.--The Secretary may approve on-the-job
training for any adversely affected worker if--
``(A) the worker meets the requirements for training to be
approved under subsection (a)(1);
``(B) the Secretary determines that on-the-job training--
``(i) can reasonably be expected to lead to suitable
employment with the employer offering the on-the-job
training;
``(ii) is compatible with the skills of the worker;
``(iii) includes a curriculum through which the worker
will gain the knowledge or skills to become proficient in
the job for which the worker is being trained; and
``(iv) can be measured by benchmarks that indicate that
the worker is gaining such knowledge or skills; and
``(C) the State determines that the on-the-job training
program meets the requirements of clauses (iii) and (iv) of
subparagraph (B).
``(2) Monthly payments.--The Secretary shall pay the costs of
on-the-job training approved under paragraph (1) in monthly
installments.
``(3) Contracts for on-the-job training.--
``(A) In general.--The Secretary shall ensure, in entering
into a contract with an employer to provide on-the-job training
to a worker under this subsection, that the skill requirements
of the job for which the worker is being trained, the academic
and occupational skill level of the worker, and the work
experience of the worker are taken into consideration.
``(B) Term of contract.--Training under any such contract
shall be limited to the period of time required for the worker
receiving on-the-job training to become proficient in the job
for which the worker is being trained, but may not exceed 104
weeks in any case.
``(4) Exclusion of certain employers.--The Secretary shall not
enter into a contract for on-the-job training with an employer that
exhibits a pattern of failing to provide workers receiving on-the-
job training from the employer with--
``(A) continued, long-term employment as regular employees;
and
``(B) wages, benefits, and working conditions that are
equivalent to the wages, benefits, and working conditions
provided to regular employees who have worked a similar period
of time and are doing the same type of work as workers
receiving on-the-job training from the employer.
``(5) Labor standards.--The Secretary may pay the costs of on-
the-job training,''; and
(3) in paragraph (5), as redesignated--
(A) in subparagraph (I), as redesignated by paragraph (1)
of this section, by striking ``paragraphs (1), (2), (3), (4),
(5), and (6)'' and inserting ``subparagraphs (A), (B), (C),
(D), (E), and (F)''; and
(B) in subparagraph (J), as redesignated by paragraph (1)
of this section, by striking ``paragraph (8)'' and inserting
``subparagraph (H)''.
(b) Repeal of Preference for Training on the Job.--Section
236(a)(1) of the Trade Act of 1974 (19 U.S.C. 2296(a)(1)) is amended by
striking the last sentence.
SEC. 1832. ELIGIBILITY FOR UNEMPLOYMENT INSURANCE AND PROGRAM BENEFITS
WHILE IN TRAINING.
Section 236(d) of the Trade Act of 1974 (19 U.S.C. 2296(d)) is
amended to read as follows:
``(d) Eligibility.--An adversely affected worker may not be
determined to be ineligible or disqualified for unemployment insurance
or program benefits under this subchapter--
``(1) because the worker--
``(A) is enrolled in training approved under subsection
(a);
``(B) left work--
``(i) that was not suitable employment in order to
enroll in such training; or
``(ii) that the worker engaged in on a temporary basis
during a break in such training or a delay in the
commencement of such training; or
``(C) left on-the-job training not later than 30 days after
commencing such training because the training did not meet the
requirements of subsection (c)(1)(B); or
``(2) because of the application to any such week in training
of the provisions of State law or Federal unemployment insurance
law relating to availability for work, active search for work, or
refusal to accept work.''.
SEC. 1833. JOB SEARCH AND RELOCATION ALLOWANCES.
(a) Job Search Allowances.--Section 237 of the Trade Act of 1974
(19 U.S.C. 2297) is amended--
(1) in subsection (a)(2)(C)(ii), by striking ``, unless the
worker received a waiver under section 231(c)''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``90 percent of the cost
of'' and inserting ``all''; and
(B) in paragraph (2), by striking ``$1,250'' and inserting
``$1,500''.
(b) Relocation Allowances.--Section 238 of the Trade Act of 1974
(19 U.S.C. 2298) is amended--
(1) in subsection (a)(2)(E)(ii), by striking ``, unless the
worker received a waiver under section 231(c)''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``90 percent of the'' and
inserting ``all''; and
(B) in paragraph (2), by striking ``$1,250'' and inserting
``$1,500''.
Subpart D--Reemployment Trade Adjustment Assistance Program
SEC. 1841. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.
(a) In General.--Section 246 of the Trade Act of 1974 (19 U.S.C.
2318) is amended--
(1) by amending the heading to read as follows:
``SEC. 246. REEMPLOYMENT TRADE ADJUSTMENT ASSISTANCE PROGRAM.'';
(2) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``Not later than'' and all that follows
through ``2002, the Secretary'' and inserting ``The
Secretary''; and
(ii) by striking ``an alternative trade adjustment
assistance program for older workers'' and inserting ``a
reemployment trade adjustment assistance program'';
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) in the matter preceding clause (i), by striking
``for a period not to exceed 2 years'' and inserting
``for the eligibility period under subparagraph (A) or
(B) of paragraph (4) (as the case may be)''; and
(II) by striking clauses (i) and (ii) and inserting
the following:
``(i) the wages received by the worker at the time of
separation; and
``(ii) the wages received by the worker from
reemployment.'';
(ii) in subparagraph (B)--
(I) by striking ``for a period not to exceed 2
years'' and inserting ``for the eligibility period
under subparagraph (A) or (B) of paragraph (4) (as the
case may be)''; and
(II) by striking ``, as added by section 201 of the
Trade Act of 2002''; and
(iii) by adding at the end the following:
``(C) Training and other services.--A worker described in
paragraph (3)(B) participating in the program established under
paragraph (1) is eligible to receive training approved under
section 236 and employment and case management services under
section 235.''; and
(C) by striking paragraphs (3) through (5) and inserting
the following:
``(3) Eligibility.--
``(A) In general.--A group of workers certified under
subchapter A as eligible for adjustment assistance under
subchapter A is eligible for benefits described in paragraph
(2) under the program established under paragraph (1).
``(B) Individual eligibility.--A worker in a group of
workers described in subparagraph (A) may elect to receive
benefits described in paragraph (2) under the program
established under paragraph (1) if the worker--
``(i) is at least 50 years of age;
``(ii) earns not more than $55,000 each year in wages
from reemployment;
``(iii)(I) is employed on a full-time basis as defined
by the law of the State in which the worker is employed and
is not enrolled in a training program approved under
section 236; or
``(II) is employed at least 20 hours per week and is
enrolled in a training program approved under section 236;
and
``(iv) is not employed at the firm from which the
worker was separated.
``(4) Eligibility period for payments.--
``(A) Worker who has not received trade readjustment
allowance.--In the case of a worker described in paragraph
(3)(B) who has not received a trade readjustment allowance
under part I of subchapter B pursuant to the certification
described in paragraph (3)(A), the worker may receive benefits
described in paragraph (2) for a period not to exceed 2 years
beginning on the earlier of--
``(i) the date on which the worker exhausts all rights
to unemployment insurance based on the separation of the
worker from the adversely affected employment that is the
basis of the certification; or
``(ii) the date on which the worker obtains
reemployment described in paragraph (3)(B).
``(B) Worker who has received trade readjustment
allowance.--In the case of a worker described in paragraph
(3)(B) who has received a trade readjustment allowance under
part I of subchapter B pursuant to the certification described
in paragraph (3)(A), the worker may receive benefits described
in paragraph (2) for a period of 104 weeks beginning on the
date on which the worker obtains reemployment described in
paragraph (3)(B), reduced by the total number of weeks for
which the worker received such trade readjustment allowance.
``(5) Total amount of payments.--
``(A) In general.--The payments described in paragraph
(2)(A) made to a worker may not exceed--
``(i) $12,000 per worker during the eligibility period
under paragraph (4)(A); or
``(ii) the amount described in subparagraph (B) per
worker during the eligibility period under paragraph
(4)(B).
``(B) Amount described.--The amount described in this
subparagraph is the amount equal to the product of--
``(i) $12,000, and
``(ii) the ratio of--
``(I) the total number of weeks in the eligibility
period under paragraph (4)(B) with respect to the
worker, to
``(II) 104 weeks.
``(6) Calculation of amount of payments for certain workers.--
``(A) In general.--In the case of a worker described in
paragraph (3)(B)(iii)(II), paragraph (2)(A) shall be applied by
substituting the percentage described in subparagraph (B) for
`50 percent'.
``(B) Percentage described.--The percentage described in
this subparagraph is the percentage--
``(i) equal to \1/2\ of the ratio of--
``(I) the number of weekly hours of employment of
the worker referred to in paragraph (3)(B)(iii)(II), to
``(II) the number of weekly hours of employment of
the worker at the time of separation, but
``(ii) in no case more than 50 percent.
``(7) Limitation on other benefits.--A worker described in
paragraph (3)(B) may not receive a trade readjustment allowance
under part I of subchapter B pursuant to the certification
described in paragraph (3)(A) during any week for which the worker
receives a payment described in paragraph (2)(A).''; and
(3) in subsection (b)(2), by striking ``subsection (a)(3)(B)''
and inserting ``subsection (a)(3)''.
(b) Extension of Program.--Section 246(b)(1) of the Trade Act of
1974 (19 U.S.C. 2318(b)(1)) is amended by striking ``the date that is 5
years'' and all that follows through the end period and inserting
``December 31, 2010.''.
(c) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 246 and
inserting the following:
``Sec. 246. Reemployment trade adjustment assistance program.''.
Subpart E--Other Matters
SEC. 1851. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.
(a) In General.--Subchapter C of chapter 2 of title II of the Trade
Act of 1974 (19 U.S.C. 2311 et seq.) is amended by adding at the end
the following:
``SEC. 249A. OFFICE OF TRADE ADJUSTMENT ASSISTANCE.
``(a) Establishment.--There is established in the Department of
Labor an office to be known as the Office of Trade Adjustment
Assistance (in this section referred to as the `Office').
``(b) Head of Office.--The head of the Office shall be an
administrator, who shall report directly to the Deputy Assistant
Secretary for Employment and Training.
``(c) Principal Functions.--The principal functions of the
administrator of the Office shall be--
``(1) to oversee and implement the administration of trade
adjustment assistance program under this chapter; and
``(2) to carry out functions delegated to the Secretary of
Labor under this chapter, including--
``(A) making determinations under section 223;
``(B) providing information under section 225 about trade
adjustment assistance to workers and assisting such workers to
prepare petitions or applications for program benefits;
``(C) providing assistance to employers of groups of
workers that have filed petitions under section 221 in
submitting information required by the Secretary relating to
the petitions;
``(D) ensuring workers covered by a certification of
eligibility under subchapter A receive the employment and case
management services described in section 235;
``(E) ensuring that States fully comply with agreements
entered into under section 239;
``(F) advocating for workers applying for benefits
available under this chapter;
``(G) establishing and overseeing a hotline that workers,
employers, and other entities may call to obtain information
regarding eligibility criteria, procedural requirements, and
benefits available under this chapter; and
``(H) carrying out such other duties with respect to this
chapter as the Secretary specifies for purposes of this
section.
``(d) Administration.--
``(1) Designation.--The administrator shall designate an
employee of the Department of Labor with appropriate experience and
expertise to carry out the duties described in paragraph (2).
``(2) Duties.--The employee designated under paragraph (1)
shall--
``(A) receive complaints and requests for assistance
related to the trade adjustment assistance program under this
chapter;
``(B) resolve such complaints and requests for assistance,
in coordination with other employees of the Office;
``(C) compile basic information concerning such complaints
and requests for assistance; and
``(D) carry out such other duties with respect to this
chapter as the Secretary specifies for purposes of this
section.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by inserting after the item relating to section 249 the
following:
``Sec. 249A. Office of Trade Adjustment Assistance.''.
SEC. 1852. ACCOUNTABILITY OF STATE AGENCIES; COLLECTION AND PUBLICATION
OF PROGRAM DATA; AGREEMENTS WITH STATES.
(a) In General.--Section 239(a) of the Trade Act of 1974 (19 U.S.C.
2311(a)) is amended--
(1) by amending clause (2) to read as follows: ``(2) in
accordance with subsection (f), shall make available to adversely
affected workers and adversely affected incumbent workers covered
by a certification under subchapter A the employment and case
management services described in section 235,''; and
(2) by striking ``will'' each place it appears and inserting
``shall''.
(b) Form and Manner of Data.--Section 239 of the Trade Act of 1974
(19 U.S.C. 2311) is amended--
(1) by redesignating subsections (c) through (g) as subsections
(d) through (h), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Form and Manner of Data.--Each agreement under this
subchapter shall--
``(1) provide the Secretary with the authority to collect any
data the Secretary determines necessary to meet the requirements of
this chapter; and
``(2) specify the form and manner in which any such data
requested by the Secretary shall be reported.''.
(c) State Activities.--Section 239(g) of the Trade Act of 1974 (as
redesignated) is amended--
(1) in paragraph (3), by striking ``and'' at the end;
(2) by amending paragraph (4) to read as follows:
``(4) perform outreach to, intake of, and orientation for
adversely affected workers and adversely affected incumbent workers
covered by a certification under subchapter A with respect to
assistance and benefits available under this chapter, and''; and
(3) by adding at the end the following:
``(5) make employment and case management services described in
section 235 available to adversely affected workers and adversely
affected incumbent workers covered by a certification under
subchapter A and, if funds provided to carry out this chapter are
insufficient to make such services available, make arrangements to
make such services available through other Federal programs.''.
(d) Reporting Requirement.--Section 239(h) of the Trade Act of 1974
(as redesignated) is amended by striking ``1998.'' and inserting ``1998
(29 U.S.C. 2822(b)) and a description of the State's rapid response
activities under section 221(a)(2)(A).''.
(e) Control Measures.--Section 239 of the Trade Act of 1974 (19
U.S.C. 2311), as amended, is further amended by adding at the end the
following:
``(i) Control Measures.--
``(1) In general.--The Secretary shall require each cooperating
State and cooperating State agency to implement effective control
measures and to effectively oversee the operation and
administration of the trade adjustment assistance program under
this chapter, including by means of monitoring the operation of
control measures to improve the accuracy and timeliness of the data
being collected and reported.
``(2) Definition.--For purposes of paragraph (1), the term
`control measures' means measures that--
``(A) are internal to a system used by a State to collect
data; and
``(B) are designed to ensure the accuracy and verifiability
of such data.
``(j) Data Reporting.--
``(1) In general.--Any agreement entered into under this
section shall require the cooperating State or cooperating State
agency to report to the Secretary on a quarterly basis
comprehensive performance accountability data, to consist of--
``(A) the core indicators of performance described in
paragraph (2)(A);
``(B) the additional indicators of performance described in
paragraph (2)(B), if any; and
``(C) a description of efforts made to improve outcomes for
workers under the trade adjustment assistance program.
``(2) Core indicators described.--
``(A) In general.--The core indicators of performance
described in this paragraph are--
``(i) the percentage of workers receiving benefits
under this chapter who are employed during the second
calendar quarter following the calendar quarter in which
the workers cease receiving such benefits;
``(ii) the percentage of such workers who are employed
in each of the third and fourth calendar quarters following
the calendar quarter in which the workers cease receiving
such benefits; and
``(iii) the earnings of such workers in each of the
third and fourth calendar quarters following the calendar
quarter in which the workers cease receiving such benefits.
``(B) Additional indicators.--The Secretary and a
cooperating State or cooperating State agency may agree upon
additional indicators of performance for the trade adjustment
assistance program under this chapter, as appropriate.
``(3) Standards with respect to reliability of data.--In
preparing the quarterly report required by paragraph (1), each
cooperating State or cooperating State agency shall establish
procedures that are consistent with guidelines to be issued by the
Secretary to ensure that the data reported are valid and
reliable.''.
SEC. 1853. VERIFICATION OF ELIGIBILITY FOR PROGRAM BENEFITS.
Section 239 of the Trade Act of 1974 (19 U.S.C. 2311), as amended,
is further amended by adding at the end the following:
``(k) Verification of Eligibility for Program Benefits.--
``(1) In general.--An agreement under this subchapter shall
provide that the State shall periodically redetermine that a worker
receiving benefits under this subchapter who is not a citizen or
national of the United States remains in a satisfactory immigration
status. Once satisfactory immigration status has been initially
verified through the immigration status verification system
described in section 1137(d) of the Social Security Act (42 U.S.C.
1320b-7(d)) for purposes of establishing a worker's eligibility for
unemployment compensation, the State shall reverify the worker's
immigration status if the documentation provided during initial
verification will expire during the period in which that worker is
potentially eligible to receive benefits under this subchapter. The
State shall conduct such redetermination in a timely manner,
utilizing the immigration status verification system described in
section 1137(d) of the Social Security Act (42 U.S.C. 1320b-7(d)).
``(2) Procedures.--The Secretary shall establish procedures to
ensure the uniform application by the States of the requirements of
this subsection.''.
SEC. 1854. COLLECTION OF DATA AND REPORTS; INFORMATION TO WORKERS.
(a) In General.--Subchapter C of chapter 2 of title II of the Trade
Act of 1974 (19 U.S.C. 2311 et seq.), as amended, is further amended by
adding at the end the following:
``SEC. 249B. COLLECTION AND PUBLICATION OF DATA AND REPORTS;
INFORMATION TO WORKERS.
``(a) In General.--Not later than 180 days after the date of the
enactment of this section, the Secretary shall implement a system to
collect and report the data described in subsection (b), as well as any
other information that the Secretary considers appropriate to
effectively carry out this chapter.
``(b) Data to Be Included.--The system required under subsection
(a) shall include collection of and reporting on the following data for
each fiscal year:
``(1) Data on petitions filed, certified, and denied.--
``(A) The number of petitions filed, certified, and denied
under this chapter.
``(B) The number of workers covered by petitions filed,
certified, and denied.
``(C) The number of petitions, classified by--
``(i) the basis for certification, including increased
imports, shifts in production, and other bases of
eligibility; and
``(ii) congressional district of the United States.
``(D) The average time for processing such petitions.
``(2) Data on benefits received.--
``(A) The number of workers receiving benefits under this
chapter.
``(B) The number of workers receiving each type of benefit,
including training, trade readjustment allowances, employment
and case management services, and relocation and job search
allowances, and, to the extent feasible, credits for health
insurance costs under section 35 of the Internal Revenue Code
of 1986.
``(C) The average time during which such workers receive
each such type of benefit.
``(3) Data on training.--
``(A) The number of workers enrolled in training approved
under section 236, classified by major types of training,
including classroom training, training through distance
learning, on-the-job training, and customized training.
``(B) The number of workers enrolled in full-time training
and part-time training.
``(C) The average duration of training.
``(D) The number of training waivers granted under section
231(c), classified by type of waiver.
``(E) The number of workers who complete training and the
duration of such training.
``(F) The number of workers who do not complete training.
``(4) Data on outcomes.--
``(A) A summary of the quarterly reports required under
section 239(j).
``(B) The sectors in which workers are employed after
receiving benefits under this chapter.
``(5) Data on rapid response activities.--Whether rapid
response activities were provided with respect to each petition
filed under section 221.
``(c) Classification of Data.--To the extent possible, in
collecting and reporting the data described in subsection (b), the
Secretary shall classify the data by industry, State, and national
totals.
``(d) Report.--Not later than December 15 of each year, the
Secretary shall submit to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of Representatives a
report that includes--
``(1) a summary of the information collected under this section
for the preceding fiscal year;
``(2) information on the distribution of funds to each State
pursuant to section 236(a)(2); and
``(3) any recommendations of the Secretary with respect to
changes in eligibility requirements, benefits, or training funding
under this chapter based on the data collected under this section.
``(e) Availability of Data.--
``(1) In general.--The Secretary shall make available to the
public, by publishing on the website of the Department of Labor and
by other means, as appropriate--
``(A) the report required under subsection (d);
``(B) the data collected under this section, in a
searchable format; and
``(C) a list of cooperating States and cooperating State
agencies that failed to submit the data required by this
section to the Secretary in a timely manner.
``(2) Updates.--The Secretary shall update the data under
paragraph (1) on a quarterly basis.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by inserting after the item relating to section 249A
the following:
``Sec. 249B. Collection and publication of data and reports; information
to workers.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 1855. FRAUD AND RECOVERY OF OVERPAYMENTS.
Section 243(a)(1) of the Trade Act of 1974 (19 U.S.C. 2315(a)(1))
is amended--
(1) in the matter preceding subparagraph (A)--
(A) by striking ``may waive'' and inserting ``shall
waive''; and
(B) by striking ``, in accordance with guidelines
prescribed by the Secretary,''; and
(2) in subparagraph (B), by striking ``would be contrary to
equity and good conscience'' and inserting ``would cause a
financial hardship for the individual (or the individual's
household, if applicable) when taking into consideration the income
and resources reasonably available to the individual (or household)
and other ordinary living expenses of the individual (or
household)''.
SEC. 1856. SENSE OF CONGRESS ON APPLICATION OF TRADE ADJUSTMENT
ASSISTANCE.
(a) In General.--Chapter 5 of title II of the Trade Act of 1974 (19
U.S.C. 2391 et seq.) is amended by adding at the end the following:
``SEC. 288. SENSE OF CONGRESS.
``It is the sense of Congress that the Secretaries of Labor,
Commerce, and Agriculture should apply the provisions of chapter 2
(relating to adjustment assistance for workers), chapter 3 (relating to
adjustment assistance for firms), chapter 4 (relating to adjustment
assistance for communities), and chapter 6 (relating to adjustment
assistance for farmers), respectively, with the utmost regard for the
interests of workers, firms, communities, and farmers petitioning for
benefits under such chapters.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by inserting after the item relating to section 287 the
following:
``Sec. 288. Sense of Congress.''.
SEC. 1857. CONSULTATIONS IN PROMULGATION OF REGULATIONS.
Section 248 of the Trade Act of 1974 (19 U.S.C. 2320) is amended--
(1) by striking ``The Secretary shall'' and inserting the
following:
``(a) In General.--The Secretary shall''; and
(2) by adding at the end the following:
``(b) Consultations.--Not later than 90 days before issuing a
regulation under subsection (a), the Secretary shall consult with the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives with respect to the regulation.''.
SEC. 1858. TECHNICAL CORRECTIONS.
(a) Determinations by Secretary of Labor.--Section 223(c) of the
Trade Act of 1974 (19 U.S.C. 2273(c)) is amended by striking ``his
determination'' and inserting ``a determination''.
(b) Qualifying Requirements for Workers.--Section 231(a) of the
Trade Act of 1974 (19 U.S.C. 2291(a)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by striking
``his application'' and inserting ``the worker's application'';
and
(B) in subparagraph (A), by striking ``he is covered'' and
inserting ``the worker is covered'';
(2) in paragraph (2)--
(A) in subparagraph (A), by striking the period and
inserting a comma; and
(B) in subparagraph (D), by striking ``5 U.S.C.
8521(a)(1)'' and inserting ``section 8521(a)(1) of title 5,
United States Code''; and
(3) in paragraph (3)--
(A) by striking ``he'' each place it appears and inserting
``the worker''; and
(B) in subparagraph (C), by striking ``him'' and inserting
``the worker''.
(c) Subpoena Power.--Section 249 of the Trade Act of 1974 (19
U.S.C. 2321) is amended--
(1) in the section heading, by striking ``subpena'' and
inserting ``subpoena'';
(2) by striking ``subpena'' and inserting ``subpoena'' each
place it appears; and
(3) in subsection (a), by striking ``him'' and inserting ``the
Secretary''.
(d) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 249 and
inserting the following:
``Sec. 249. Subpoena power.''.
PART II--TRADE ADJUSTMENT ASSISTANCE FOR FIRMS
SEC. 1861. EXPANSION TO SERVICE SECTOR FIRMS.
(a) In General.--Section 251 of the Trade Act of 1974 (19 U.S.C.
2341) is amended by inserting ``or service sector firm'' after
``agricultural firm'' each place it appears.
(b) Definition of Service Sector Firm.--Section 261 of the Trade
Act of 1974 (19 U.S.C. 2351) is amended--
(1) by striking ``chapter,'' and inserting ``chapter:'';
(2) by striking ``the term `firm''' and inserting the
following:
``(1) Firm.--The term `firm'''; and
(3) by adding at the end the following:
``(2) Service sector firm.--The term `service sector firm'
means a firm engaged in the business of supplying services.''.
(c) Conforming Amendments.--
(1) Section 251(c)(1)(C) of the Trade Act of 1974 (19 U.S.C.
2341(c)(1)(C)) is amended--
(A) by inserting ``or services'' after ``articles'' the
first place it appears; and
(B) by inserting ``or services which are supplied'' after
``produced''.
(2) Section 251(c)(2)(B)(ii) of such Act is amended to read as
follows:
``(ii) Any firm that engages in exploration or drilling for oil
or natural gas, or otherwise produces oil or natural gas, shall be
considered to be producing articles directly competitive with
imports of oil and with imports of natural gas.''.
SEC. 1862. MODIFICATION OF REQUIREMENTS FOR CERTIFICATION.
Section 251(c)(1)(B) of the Trade Act of 1974 (19 U.S.C.
2341(c)(1)(B)) is amended to read as follows:
``(B) that--
``(i) sales or production, or both, of the firm have
decreased absolutely,
``(ii) sales or production, or both, of an article or
service that accounted for not less than 25 percent of the
total sales or production of the firm during the 12-month
period preceding the most recent 12-month period for which date
are available have decreased absolutely,
``(iii) sales or production, or both, of the firm during
the most recent 12-month period for which data are available
have decreased compared to--
``(I) the average annual sales or production for the
firm during the 24-month period preceding that 12-month
period, or
``(II) the average annual sales or production for the
firm during the 36-month period preceding that 12-month
period, and
``(iv) sales or production, or both, of an article or
service that accounted for not less than 25 percent of the
total sales or production of the firm during the most recent
12-month period for which data are available have decreased
compared to--
``(I) the average annual sales or production for the
article or service during the 24-month period preceding
that 12-month period, or
``(II) the average annual sales or production for the
article or service during the 36-month period preceding
that 12-month period, and''.
SEC. 1863. BASIS FOR DETERMINATIONS.
Section 251 of the Trade Act of 1974 (19 U.S.C. 2341), as amended,
is further amended by adding at the end the following:
``(e) Basis for Secretary's Determinations.--For purposes of
subsection (c)(1)(C), the Secretary may determine that there are
increased imports of like or directly competitive articles or services,
if customers accounting for a significant percentage of the decrease in
the sales or production of the firm certify to the Secretary that such
customers have increased their imports of such articles or services
from a foreign country, either absolutely or relative to their
acquisition of such articles or services from suppliers located in the
United States.
``(f) Notification to Firms of Availability of Benefits.--Upon
receiving notice from the Secretary of Labor under section 225 of the
identity of a firm that is covered by a certification issued under
section 223, the Secretary of Commerce shall notify the firm of the
availability of adjustment assistance under this chapter.''.
SEC. 1864. OVERSIGHT AND ADMINISTRATION; AUTHORIZATION OF
APPROPRIATIONS.
(a) In General.--Chapter 3 of title II of the Trade Act of 1974 (19
U.S.C. 2341 et seq.) is amended--
(1) by striking sections 254, 255, 256, and 257;
(2) by redesignating sections 258, 259, 260, 261, 262, 264, and
265, as sections 256, 257, 258, 259, 260, 261, and 262,
respectively; and
(3) by inserting after section 253 the following:
``SEC. 254. OVERSIGHT AND ADMINISTRATION.
``(a) In General.--The Secretary shall, to such extent and in such
amounts as are provided in appropriations Acts, provide grants to
intermediary organizations (referred to in section 253(b)(1))
throughout the United States pursuant to agreements with such
intermediary organizations. Each such agreement shall require the
intermediary organization to provide benefits to firms certified under
section 251. The Secretary shall, to the maximum extent practicable,
provide by October 1, 2010, that contracts entered into with
intermediary organizations be for a 12-month period and that all such
contracts have the same beginning date and the same ending date.
``(b) Distribution of Funds.--
``(1) In general.--Not later than 90 days after the date of the
enactment of this subsection, the Secretary shall develop a
methodology for the distribution of funds among the intermediary
organizations described in subsection (a).
``(2) Prompt initial distribution.--The methodology described
in paragraph (1) shall ensure the prompt initial distribution of
funds and establish additional criteria governing the apportionment
and distribution of the remainder of such funds among the
intermediary organizations.
``(3) Criteria.--The methodology described in paragraph (1)
shall include criteria based on the data in the annual report on
the trade adjustment assistance for firms program described in
section 1866 of the Trade and Globalization Adjustment Assistance
Act of 2009.
``(c) Requirements for Contracts.--An agreement with an
intermediary organization described in subsection (a) shall require the
intermediary organization to contract for the supply of services to
carry out grants under this chapter in accordance with terms and
conditions that are consistent with guidelines established by the
Secretary.
``(d) Consultations.--
``(1) Consultations regarding methodology.--The Secretary shall
consult with the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives--
``(A) not less than 30 days before finalizing the
methodology described in subsection (b); and
``(B) not less than 60 days before adopting any changes to
such methodology.
``(2) Consultations regarding guidelines.--The Secretary shall
consult with the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives not
less than 60 days before finalizing the guidelines described in
subsection (c) or adopting any subsequent changes to such
guidelines.
``SEC. 255. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to the
Secretary $50,000,000 for each of the fiscal years 2009 through 2010,
and $12,501,000 for the period beginning October 1, 2010, and ending
December 31, 2010, to carry out the provisions of this chapter. Amounts
appropriated pursuant to this subsection shall--
``(1) be available to provide adjustment assistance to firms
that file a petition for such assistance pursuant to this chapter
on or before December 31, 2010; and
``(2) otherwise remain available until expended.
``(b) Personnel.--Of the amounts appropriated pursuant to this
section for each fiscal year, $350,000 shall be available for full-time
positions in the Department of Commerce to administer the provisions of
this chapter. Of such funds the Secretary shall make available to the
Economic Development Administration such sums as may be necessary to
establish the position of Director of Adjustment Assistance for Firms
and such other full-time positions as may be appropriate to administer
the provisions of this chapter.''.
(b) Residual Authority.--The Secretary of Commerce shall have the
authority to modify, terminate, resolve, liquidate, or take any other
action with respect to a loan, guarantee, contract, or any other
financial assistance that was extended under section 254, 255, 256, or
257 of the Trade Act of 1974 (19 U.S.C. 2344, 2345, 2346, and 2347), as
in effect on the day before the effective date set forth in section
1891.
(c) Conforming Amendments.--
(1) Section 256 of the Trade Act of 1974, as redesignated by
subsection (a) of this section, is amended by striking subsection
(d).
(2) Section 258 of the Trade Act of 1974, as redesignated by
subsection (a) of this section, is amended--
(A) in the first sentence, by striking ``and financial'';
and
(B) in the last sentence--
(i) by striking ``sections 253 and 254'' and inserting
``section 253''; and
(ii) by striking ``title 28 of the United States Code''
and inserting ``title 28, United States Code''.
(d) Clerical Amendments.--The table of contents of the Trade Act of
1974 is amended by striking the items relating to sections 254, 255,
256, 257, 258, 259, 260, 261, 262, 264, and 265, and inserting the
following:
``Sec. 254. Oversight and administration.
``Sec. 255. Authorization of appropriations.
``Sec. 256. Protective provisions.
``Sec. 257. Penalties.
``Sec. 258. Civil actions.
``Sec. 259. Definitions.
``Sec. 260. Regulations.
``Sec. 261. Study by Secretary of Commerce when International Trade
Commission begins investigation; action where there is
affirmative finding.
``Sec. 262. Assistance to industries.''.
(e) Effective Date.--This section and the amendments made by this
section shall take effect upon the expiration of the 90-day period
beginning on the date of the enactment of this Act, except that
subsections (b) and (d) of section 254 of the Trade Act of 1974 (as
added by subsection (a) of this section) shall take effect on such date
of enactment.
SEC. 1865. INCREASED PENALTIES FOR FALSE STATEMENTS.
Section 257 of the Trade Act of 1974, as redesignated by section
1864(a), is amended to read as follows:
``SEC. 257. PENALTIES.
``Any person who--
``(1) makes a false statement of a material fact knowing it to
be false, or knowingly fails to disclose a material fact, or
willfully overvalues any security, for the purpose of influencing
in any way a determination under this chapter, or for the purpose
of obtaining money, property, or anything of value under this
chapter, or
``(2) makes a false statement of a material fact knowing it to
be false, or knowingly fails to disclose a material fact, when
providing information to the Secretary during an investigation of a
petition under this chapter,
shall be imprisoned for not more than 2 years, or fined under title 18,
United States Code, or both.''.
SEC. 1866. ANNUAL REPORT ON TRADE ADJUSTMENT ASSISTANCE FOR FIRMS.
(a) In General.--Not later than December 15, 2009, and each year
thereafter, the Secretary of Commerce shall prepare a report containing
data regarding the trade adjustment assistance for firms program
provided for in chapter 3 of title II of the Trade Act of 1974 (19
U.S.C. 2341 et seq.) for the preceding fiscal year. The data shall
include the following:
(1) The number of firms that inquired about the program.
(2) The number of petitions filed under section 251.
(3) The number of petitions certified and denied.
(4) The average time for processing petitions.
(5) The number of petitions filed and firms certified for each
congressional district of the United States.
(6) The number of firms that received assistance in preparing
their petitions.
(7) The number of firms that received assistance developing
business recovery plans.
(8) The number of business recovery plans approved and denied
by the Secretary of Commerce.
(9) Sales, employment, and productivity at each firm
participating in the program at the time of certification.
(10) Sales, employment, and productivity at each firm upon
completion of the program and each year for the 2-year period
following completion.
(11) The financial assistance received by each firm
participating in the program.
(12) The financial contribution made by each firm participating
in the program.
(13) The types of technical assistance included in the business
recovery plans of firms participating in the program.
(14) The number of firms leaving the program before completing
the project or projects in their business recovery plans and the
reason the project was not completed.
(b) Classification of Data.--To the extent possible, in collecting
and reporting the data described in subsection (a), the Secretary shall
classify the data by intermediary organization, State, and national
totals.
(c) Report to Congress; Publication.--The Secretary of Commerce
shall--
(1) submit the report described in subsection (a) to the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives; and
(2) publish the report in the Federal Register and on the
website of the Department of Commerce.
(d) Protection of Confidential Information.--The Secretary of
Commerce may not release information described in subsection (a) that
the Secretary considers to be confidential business information unless
the person submitting the confidential business information had notice,
at the time of submission, that such information would be released by
the Secretary, or such person subsequently consents to the release of
the information. Nothing in this subsection shall be construed to
prohibit the Secretary from providing such confidential business
information to a court in camera or to another party under a protective
order issued by a court.
SEC. 1867. TECHNICAL CORRECTIONS.
(a) In General.--Section 251 of the Trade Act of 1974 (19 U.S.C.
2341), as amended, is further amended--
(1) in subsection (a), by striking ``he has'' and inserting
``the Secretary has''; and
(2) in subsection (d), by striking ``60 days'' and inserting
``40 days''.
(b) Technical Assistance.--Section 253(a)(3) of the Trade Act of
1974 (19 U.S.C. 2343(a)(3)) is amended by striking ``of a certified
firm'' and inserting ``to a certified firm''.
PART III--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES
SEC. 1871. PURPOSE.
The purpose of the amendments made by this part is to assist
communities impacted by trade with economic adjustment through the
coordination of Federal, State, and local resources, the creation of
community-based development strategies, and the development and
provision of programs that meet the training needs of workers covered
by certifications under section 223.
SEC. 1872. TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES.
(a) In General.--Chapter 4 of title II of the Trade Act of 1974 (19
U.S.C. 2371 et seq.) is amended to read as follows:
``CHAPTER 4--TRADE ADJUSTMENT ASSISTANCE FOR COMMUNITIES
``Subchapter A--Trade Adjustment Assistance for Communities
``SEC. 271. DEFINITIONS.
``In this subchapter:
``(1) Agricultural commodity producer.--The term `agricultural
commodity producer' has the meaning given that term in section 291.
``(2) Community.--The term `community' means a city, county, or
other political subdivision of a State or a consortium of political
subdivisions of a State.
``(3) Community impacted by trade.--The term `community
impacted by trade' means a community described in section
273(b)(2).
``(4) Eligible community.--The term `eligible community' means
a community that the Secretary has determined under section
273(b)(1) is eligible to apply for assistance under this
subchapter.
``(5) Secretary.--The term `Secretary' means the Secretary of
Commerce.
``SEC. 272. ESTABLISHMENT OF TRADE ADJUSTMENT ASSISTANCE FOR
COMMUNITIES PROGRAM.
``Not later than August 1, 2009, the Secretary shall establish a
trade adjustment assistance for communities program at the Department
of Commerce under which the Secretary shall--
``(1) provide technical assistance under section 274 to
communities impacted by trade to facilitate the economic adjustment
of those communities; and
``(2) award grants to communities impacted by trade to carry
out strategic plans developed under section 276.
``SEC. 273. ELIGIBILITY; NOTIFICATION.
``(a) Petition.--
``(1) In general.--A community may submit a petition to the
Secretary for an affirmative determination under subsection (b)(1)
that the community is eligible to apply for assistance under this
subchapter if--
``(A) on or after August 1, 2009, one or more
certifications described in subsection (b)(3) are made with
respect to the community; and
``(B) the community submits the petition not later than 180
days after the date of the most recent certification.
``(2) Special rule with respect to certain communities.--In the
case of a community with respect to which one or more
certifications described in subsection (b)(3) were made on or after
January 1, 2007, and before August 1, 2009, the community may
submit not later than February 1, 2010, a petition to the Secretary
for an affirmative determination under subsection (b)(1).
``(b) Affirmative Determination.--
``(1) In general.--The Secretary shall make an affirmative
determination that a community is eligible to apply for assistance
under this subchapter if the Secretary determines that the
community is a community impacted by trade.
``(2) Community impacted by trade.--A community is a community
impacted by trade if--
``(A) one or more certifications described in paragraph (3)
are made with respect to the community; and
``(B) the Secretary determines that the community is
significantly affected by the threat to, or the loss of, jobs
associated with any such certification.
``(3) Certification described.--A certification described in
this paragraph is a certification--
``(A) by the Secretary of Labor that a group of workers in
the community is eligible to apply for assistance under section
223;
``(B) by the Secretary of Commerce that a firm located in
the community is eligible to apply for adjustment assistance
under section 251; or
``(C) by the Secretary of Agriculture that a group of
agricultural commodity producers in the community is eligible
to apply for adjustment assistance under section 293.
``(c) Notifications.--
``(1) Notification to the governor.--The Governor of a State
shall be notified promptly--
``(A) by the Secretary of Labor, upon making a
determination that a group of workers in the State is eligible
for assistance under section 223;
``(B) by the Secretary of Commerce, upon making a
determination that a firm in the State is eligible for
assistance under section 251; and
``(C) by the Secretary of Agriculture, upon making a
determination that a group of agricultural commodity producers
in the State is eligible for assistance under section 293.
``(2) Notification to community.--Upon making an affirmative
determination under subsection (b)(1) that a community is eligible
to apply for assistance under this subchapter, the Secretary shall
promptly notify the community and the Governor of the State in
which the community is located--
``(A) of the affirmative determination;
``(B) of the applicable provisions of this subchapter; and
``(C) of the means for obtaining assistance under this
subchapter and other appropriate economic assistance that may
be available to the community.
``SEC. 274. TECHNICAL ASSISTANCE.
``(a) In General.--The Secretary shall provide comprehensive
technical assistance to an eligible community to assist the community
to--
``(1) diversify and strengthen the economy in the community;
``(2) identify significant impediments to economic development
that result from the impact of trade on the community; and
``(3) develop a strategic plan under section 276 to address
economic adjustment and workforce dislocation in the community,
including unemployment among agricultural commodity producers.
``(b) Coordination of Federal Response.--The Secretary shall
coordinate the Federal response to an eligible community by--
``(1) identifying Federal, State, and local resources that are
available to assist the community in responding to economic
distress; and
``(2) assisting the community in accessing available Federal
assistance and ensuring that such assistance is provided in a
targeted, integrated manner.
``(c) Interagency Community Assistance Working Group.--
``(1) In general.--The Secretary shall establish an interagency
Community Assistance Working Group, to be chaired by the Secretary
or the Secretary's designee, which shall assist the Secretary with
the coordination of the Federal response pursuant to subsection
(b).
``(2) Membership.--The Working Group shall consist of
representatives of any Federal department or agency with
responsibility for providing economic adjustment assistance,
including the Department of Agriculture, the Department of Defense,
the Department of Education, the Department of Labor, the
Department of Housing and Urban Development, the Department of
Health and Human Services, the Small Business Administration, the
Department of the Treasury, and any other Federal, State, or
regional public department or agency the Secretary determines to be
appropriate.
``SEC. 275. GRANTS FOR ELIGIBLE COMMUNITIES.
``(a) In General.--The Secretary may award a grant under this
section to an eligible community to assist the community in carrying
out any project or program that is included in a strategic plan
developed by the community under section 276.
``(b) Application.--
``(1) In general.--An eligible community seeking to receive a
grant under this section shall submit a grant application to the
Secretary that contains--
``(A) the strategic plan developed by the community under
section 276(a)(1)(A) and approved by the Secretary under
section 276(a)(1)(B); and
``(B) a description of the project or program included in
the strategic plan with respect to which the community seeks
the grant.
``(2) Coordination among grant programs.--If an entity in an
eligible community is seeking or plans to seek a Community College
and Career Training Grant under section 278 or a Sector Partnership
Grant under section 279A while the eligible community is seeking a
grant under this section, the eligible community shall include in
the grant application a description of how the eligible community
will integrate any projects or programs carried out using a grant
under this section with any projects or programs that may be
carried out using such other grants.
``(c) Limitation.--An eligible community may not be awarded more
than $5,000,000 under this section.
``(d) Cost-Sharing.--
``(1) Federal share.--The Federal share of a project or program
for which a grant is awarded under this section may not exceed 95
percent of the cost of such project or program.
``(2) Community share.--The Secretary shall require, as a
condition of awarding a grant to an eligible community under this
section, that the eligible community contribute not less than an
amount equal to 5 percent of the amount of the grant toward the
cost of the project or program for which the grant is awarded.
``(e) Grants to Small- and Medium-Sized Communities.--The Secretary
shall give priority to grant applications submitted under this section
by eligible communities that are small- and medium-sized communities.
``(f) Annual Report.--Not later than December 15 in each of the
calendar years 2009 through 2011, the Secretary shall submit to the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives a report--
``(1) describing each grant awarded under this section during
the preceding fiscal year; and
``(2) assessing the impact on the eligible community of each
such grant awarded in a fiscal year before the fiscal year referred
to in paragraph (1).
``SEC. 276. STRATEGIC PLANS.
``(a) In General.--
``(1) Development.--An eligible community that intends to apply
for a grant under section 275 shall--
``(A) develop a strategic plan for the community's economic
adjustment to the impact of trade; and
``(B) submit the plan to the Secretary for evaluation and
approval.
``(2) Involvement of private and public entities.--
``(A) In general.--To the extent practicable, an eligible
community shall consult with entities described in subparagraph
(B) in developing a strategic plan under paragraph (1).
``(B) Entities described.--Entities described in this
subparagraph are public and private entities within the
eligible community, including--
``(i) local, county, or State government agencies
serving the community;
``(ii) firms, including small- and medium-sized firms,
within the community;
``(iii) local workforce investment boards established
under section 117 of the Workforce Investment Act of 1998
(29 U.S.C. 2832);
``(iv) labor organizations, including State labor
federations and labor-management initiatives, representing
workers in the community; and
``(v) educational institutions, local educational
agencies, or other training providers serving the
community.
``(b) Contents.--The strategic plan shall, at a minimum, contain
the following:
``(1) A description and analysis of the capacity of the
eligible community to achieve economic adjustment to the impact of
trade.
``(2) An analysis of the economic development challenges and
opportunities facing the community as well as the strengths and
weaknesses of the economy of the community.
``(3) An assessment of the commitment of the eligible community
to the strategic plan over the long term and the participation and
input of members of the community affected by economic dislocation.
``(4) A description of the role and the participation of the
entities described in subsection (a)(2)(B) in developing the
strategic plan.
``(5) A description of the projects to be undertaken by the
eligible community under the strategic plan.
``(6) A description of how the strategic plan and the projects
to be undertaken by the eligible community will facilitate the
community's economic adjustment.
``(7) A description of the educational and training programs
available to workers in the eligible community and the future
employment needs of the community.
``(8) An assessment of the cost of implementing the strategic
plan, the timing of funding required by the eligible community to
implement the strategic plan, and the method of financing to be
used to implement the strategic plan.
``(9) A strategy for continuing the economic adjustment of the
eligible community after the completion of the projects described
in paragraph (5).
``(c) Grants to Develop Strategic Plans.--
``(1) In general.--The Secretary, upon receipt of an
application from an eligible community, may award a grant to the
community to assist the community in developing a strategic plan
under subsection (a)(1). A grant awarded under this paragraph shall
not exceed 75 percent of the cost of developing the strategic plan.
``(2) Funds to be used.--Of the funds appropriated pursuant to
section 277(c), the Secretary may make available not more than
$25,000,000 for each of the fiscal years 2009 and 2010, and
$6,250,000 for the period beginning October 1, 2010, and ending
December 31, 2010, to provide grants to eligible communities under
paragraph (1).
``SEC. 277. GENERAL PROVISIONS.
``(a) Regulations.--
``(1) In general.--The Secretary shall prescribe such
regulations as are necessary to carry out the provisions of this
subchapter, including--
``(A) establishing specific guidelines for the submission
and evaluation of strategic plans under section 276;
``(B) establishing specific guidelines for the submission
and evaluation of grant applications under section 275; and
``(C) administering the grant programs established under
sections 275 and 276.
``(2) Consultations.--The Secretary shall consult with the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives not less than 90 days prior
to promulgating any final rule or regulation pursuant to paragraph
(1).
``(b) Personnel.--The Secretary shall designate such staff as may
be necessary to carry out the responsibilities described in this
subchapter.
``(c) Authorization of Appropriations.--
``(1) In general.--There are authorized to be appropriated to
the Secretary $150,000,000 for each of the fiscal years 2009 and
2010, and $37,500,000 for the period beginning October 1, 2010, and
ending December 31, 2010, to carry out this subchapter.
``(2) Availability.--Amounts appropriated pursuant to this
subchapter--
``(A) shall be available to provide adjustment assistance
to communities that have been approved for assistance pursuant
to this chapter on or before December 31, 2010; and
``(B) shall otherwise remain available until expended.
``(3) Supplement not supplant.--Funds appropriated pursuant to
this subchapter shall be used to supplement and not supplant other
Federal, State, and local public funds expended to provide economic
development assistance for communities.
``Subchapter B--Community College and Career Training Grant Program
``SEC. 278. COMMUNITY COLLEGE AND CAREER TRAINING GRANT PROGRAM.
``(a) Grants Authorized.--
``(1) In general.--Beginning August 1, 2009, the Secretary may
award Community College and Career Training Grants to eligible
institutions for the purpose of developing, offering, or improving
educational or career training programs for workers eligible for
training under section 236.
``(2) Limitations.--An eligible institution may not be
awarded--
``(A) more than one grant under this section; or
``(B) a grant under this section in excess of $1,000,000.
``(b) Definitions.--In this section:
``(1) Eligible institution.--The term `eligible institution'
means an institution of higher education (as defined in section 102
of the Higher Education Act of 1965 (20 U.S.C. 1002)), but only
with respect to a program offered by the institution that can be
completed in not more than 2 years.
``(2) Secretary.--The term `Secretary' means the Secretary of
Labor.
``(c) Grant Proposals.--
``(1) In general.--An eligible institution seeking to receive a
grant under this section shall submit a grant proposal to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require.
``(2) Guidelines.--Not later than June 1, 2009, the Secretary
shall--
``(A) promulgate guidelines for the submission of grant
proposals under this section; and
``(B) publish and maintain such guidelines on the website
of the Department of Labor.
``(3) Assistance.--The Secretary shall offer assistance in
preparing a grant proposal to any eligible institution that
requests such assistance.
``(4) General requirements for grant proposals.--
``(A) In general.--A grant proposal submitted to the
Secretary under this section shall include a detailed
description of--
``(i) the specific project for which the grant proposal
is submitted, including the manner in which the grant will
be used to develop, offer, or improve an educational or
career training program that is suited to workers eligible
for training under section 236;
``(ii) the extent to which the project for which the
grant proposal is submitted will meet the educational or
career training needs of workers in the community served by
the eligible institution who are eligible for training
under section 236;
``(iii) the extent to which the project for which the
grant proposal is submitted fits within any overall
strategic plan developed by an eligible community under
section 276;
``(iv) the extent to which the project for which the
grant proposal is submitted relates to any project funded
by a Sector Partnership Grant awarded under section 279A;
and
``(v) any previous experience of the eligible
institution in providing educational or career training
programs to workers eligible for training under section
236.
``(B) Absence of experience.--The absence of any previous
experience in providing educational or career training programs
described in subparagraph (A)(v) shall not automatically
disqualify an eligible institution from receiving a grant under
this section.
``(5) Community outreach required.--In order to be considered
by the Secretary, a grant proposal submitted by an eligible
institution under this section shall--
``(A) demonstrate that the eligible institution--
``(i) reached out to employers, and other entities
described in section 276(a)(2)(B) to identify--
``(I) any shortcomings in existing educational and
career training opportunities available to workers in
the community; and
``(II) any future employment opportunities within
the community and the educational and career training
skills required for workers to meet the future
employment demand;
``(ii) reached out to other similarly situated
institutions in an effort to benefit from any best
practices that may be shared with respect to providing
educational or career training programs to workers eligible
for training under section 236; and
``(iii) reached out to any eligible partnership in the
community that has sought or received a Sector Partnership
Grant under section 279A to enhance the effectiveness of
each grant and avoid duplication of efforts; and
``(B) include a detailed description of--
``(i) the extent and outcome of the outreach conducted
under subparagraph (A);
``(ii) the extent to which the project for which the
grant proposal is submitted will contribute to meeting any
shortcomings identified under subparagraph (A)(i)(I) or any
educational or career training needs identified under
subparagraph (A)(i)(II); and
``(iii) the extent to which employers, including small-
and medium-sized firms within the community, have
demonstrated a commitment to employing workers who would
benefit from the project for which the grant proposal is
submitted.
``(d) Criteria for Award of Grants.--
``(1) In general.--Subject to the appropriation of funds, the
Secretary shall award a grant under this section based on--
``(A) a determination of the merits of the grant proposal
submitted by the eligible institution to develop, offer, or
improve educational or career training programs to be made
available to workers eligible for training under section 236;
``(B) an evaluation of the likely employment opportunities
available to workers who complete an educational or career
training program that the eligible institution proposes to
develop, offer, or improve; and
``(C) an evaluation of prior demand for training programs
by workers eligible for training under section 236 in the
community served by the eligible institution, as well as the
availability and capacity of existing training programs to meet
future demand for training programs.
``(2) Priority for certain communities.--In awarding grants
under this section, the Secretary shall give priority to an
eligible institution that serves a community that the Secretary of
Commerce has determined under section 273 is eligible to apply for
assistance under subchapter A within the 5-year period preceding
the date on which the grant proposal is submitted to the Secretary
under this section.
``(3) Matching requirements.--A grant awarded under this
section may not be used to satisfy any private matching requirement
under any other provision of law.
``(e) Annual Report.--Not later than December 15 in each of the
calendar years 2009 through 2011, the Secretary shall submit to the
Committee on Finance of the Senate and the Committee on Ways and Means
of the House of Representatives a report--
``(1) describing each grant awarded under this section during
the preceding fiscal year; and
``(2) assessing the impact of each award of a grant under this
section in a fiscal year preceding the fiscal year referred to in
paragraph (1) on workers receiving training under section 236.
``SEC. 279. AUTHORIZATION OF APPROPRIATIONS.
``(a) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Labor $40,000,000 for each of the
fiscal years 2009 and 2010, and $10,000,000 for the period beginning
October 1, 2010, and ending December 31, 2010, to fund the Community
College and Career Training Grant Program. Funds appropriated pursuant
to this section shall remain available until expended.
``(b) Supplement Not Supplant.--Funds appropriated pursuant to this
section shall be used to supplement and not supplant other Federal,
State, and local public funds expended to support community college and
career training programs.
``Subchapter C--Industry or Sector Partnership Grant Program for
Communities Impacted by Trade
``SEC. 279A. INDUSTRY OR SECTOR PARTNERSHIP GRANT PROGRAM FOR
COMMUNITIES IMPACTED BY TRADE.
``(a) Purpose.--The purpose of this subchapter is to facilitate
efforts by industry or sector partnerships to strengthen and revitalize
industries and create employment opportunities for workers in
communities impacted by trade.
``(b) Definitions.--In this subchapter:
``(1) Community impacted by trade.--The term `community
impacted by trade' has the meaning given that term in section 271.
``(2) Dislocated worker.--The term `dislocated worker' means a
worker who has been totally or partially separated, or is
threatened with total or partial separation, from employment in an
industry or sector in a community impacted by trade.
``(3) Eligible partnership.--The term `eligible partnership'
means a voluntary partnership composed of public and private
persons, firms, or other entities within a community impacted by
trade, that shall include representatives of--
``(A) an industry or sector within the community, including
an industry association;
``(B) local, county, or State government;
``(C) multiple firms in the industry or sector, including
small- and medium-sized firms, within the community;
``(D) local workforce investment boards established under
section 117 of the Workforce Investment Act of 1998 (29 U.S.C.
2832);
``(E) labor organizations, including State labor
federations and labor-management initiatives, representing
workers in the community; and
``(F) educational institutions, local educational agencies,
or other training providers serving the community.
``(4) Lead entity.--The term `lead entity' means--
``(A) an entity designated by the eligible partnership to
be responsible for submitting a grant proposal under subsection
(e) and serving as the eligible partnership's fiscal agent in
expending any Sector Partnership Grant awarded under this
section; or
``(B) a State agency designated by the Governor of the
State to carry out the responsibilities described in
subparagraph (A).
``(5) Secretary.--The term `Secretary' means the Secretary of
Labor.
``(6) Targeted industry or sector.--The term `targeted industry
or sector' means the industry or sector represented by an eligible
partnership.
``(c) Sector Partnership Grants Authorized.--Beginning on August 1,
2009, and subject to the appropriation of funds, the Secretary shall
award Sector Partnership Grants to eligible partnerships to assist the
eligible partnerships in carrying out projects, over periods of not
more than 3 years, to strengthen and revitalize industries and sectors
and create employment opportunities for dislocated workers.
``(d) Use of Sector Partnership Grants.--An eligible partnership
may use a Sector Partnership Grant to carry out any project that the
Secretary determines will further the purpose of this subchapter, which
may include--
``(1) identifying the skill needs of the targeted industry or
sector and any gaps in the available supply of skilled workers in
the community impacted by trade, and developing strategies for
filling the gaps, including by--
``(A) developing systems to better link firms in the
targeted industry or sector to available skilled workers;
``(B) helping firms in the targeted industry or sector to
obtain access to new sources of qualified job applicants;
``(C) retraining dislocated and incumbent workers; or
``(D) facilitating the training of new skilled workers by
aligning the instruction provided by local suppliers of
education and training services with the needs of the targeted
industry or sector;
``(2) analyzing the skills and education levels of dislocated
and incumbent workers and developing training to address skill gaps
that prevent such workers from obtaining jobs in the targeted
industry or sector;
``(3) helping firms, especially small- and medium-sized firms,
in the targeted industry or sector increase their productivity and
the productivity of their workers;
``(4) helping such firms retain incumbent workers;
``(5) developing learning consortia of small- and medium-sized
firms in the targeted industry or sector with similar training
needs to enable the firms to combine their purchases of training
services, and thereby lower their training costs;
``(6) providing information and outreach activities to firms in
the targeted industry or sector regarding the activities of the
eligible partnership and other local service suppliers that could
assist the firms in meeting needs for skilled workers;
``(7) seeking, applying, and disseminating best practices
learned from similarly situated communities impacted by trade in
the development and implementation of economic growth and
revitalization strategies; and
``(8) identifying additional public and private resources to
support the activities described in this subsection, which may
include the option to apply for a community grant under section 275
or a Community College and Career Training Grant under section 278
(subject to meeting any additional requirements of those sections).
``(e) Grant Proposals.--
``(1) In general.--The lead entity of an eligible partnership
seeking to receive a Sector Partnership Grant under this section
shall submit a grant proposal to the Secretary at such time, in
such manner, and containing such information as the Secretary may
require.
``(2) General requirements of grant proposals.--A grant
proposal submitted under paragraph (1) shall, at a minimum--
``(A) identify the members of the eligible partnership;
``(B) identify the targeted industry or sector for which
the eligible partnership intends to carry out projects using
the Sector Partnership Grant;
``(C) describe the goals that the eligible partnership
intends to achieve to promote the targeted industry or sector;
``(D) describe the projects that the eligible partnership
will undertake to achieve such goals;
``(E) demonstrate that the eligible partnership has the
organizational capacity to carry out the projects described in
subparagraph (D);
``(F) explain--
``(i) whether--
``(I) the community impacted by trade has sought or
received a community grant under section 275;
``(II) an eligible institution in the community has
sought or received a Community College and Career
Training Grant under section 278; or
``(III) any other entity in the community has
received funds pursuant to any other federally funded
training project; and
``(ii) how the eligible partnership will coordinate its
use of a Sector Partnership Grant with the use of such
other grants or funds in order to enhance the effectiveness
of each grant and any such funds and avoid duplication of
efforts; and
``(G) include performance measures, developed based on the
performance measures issued by the Secretary under subsection
(g)(2), and a timeline for measuring progress toward achieving
the goals described in subparagraph (C).
``(f) Award of Grants.--
``(1) In general.--Upon application by the lead entity of an
eligible partnership, the Secretary may award a Sector Partnership
Grant to the eligible partnership to assist the partnership in
carrying out any of the projects in the grant proposal that the
Secretary determines will further the purposes of this subchapter.
``(2) Limitations.--An eligible partnership may not be
awarded--
``(A) more than one Sector Partnership Grant; or
``(B) a total grant award under this subchapter in excess
of--
``(i) except as provided in clause (ii), $2,500,000; or
``(ii) in the case of an eligible partnership located
within a community impacted by trade that is not served by
an institution receiving a Community College and Career
Training Grant under section 278, $3,000,000.
``(g) Administration by the Secretary.--
``(1) Technical assistance and oversight.--
``(A) In general.--The Secretary shall provide technical
assistance to, and oversight of, the lead entity of an eligible
partnership in applying for and administering Sector
Partnership Grants awarded under this section.
``(B) Technical assistance.--Technical assistance provided
under subparagraph (A) shall include providing conferences and
such other methods of collecting and disseminating information
on best practices developed by eligible partnerships as the
Secretary determines appropriate.
``(C) Grants or contracts for technical assistance.--The
Secretary may award a grant or contract to one or more national
or State organizations to provide technical assistance to
foster the planning, formation, and implementation of eligible
partnerships.
``(2) Performance measures.--The Secretary shall issue a range
of performance measures, with quantifiable benchmarks, and
methodologies that eligible partnerships may use to measure
progress toward the goals described in subsection (e). In
developing such measures, the Secretary shall consider the benefits
of the eligible partnership and its activities for workers, firms,
industries, and communities.
``(h) Reports.--
``(1) Progress report.--Not later than 1 year after receiving a
Sector Partnership Grant, and 3 years thereafter, the lead entity
shall submit to the Secretary, on behalf of the eligible
partnership, a report containing--
``(A) a detailed description of the progress made toward
achieving the goals described in subsection (e)(2)(C), using
the performance measures required under subsection (e)(2)(G);
``(B) a detailed evaluation of the impact of the grant
award on workers and employers in the community impacted by
trade; and
``(C) a detailed description of all expenditures of funds
awarded to the eligible partnership under the Sector
Partnership Grant approved by the Secretary under this
subchapter.
``(2) Annual report.--Not later than December 15 in each of the
calendar years 2009 through 2011, the Secretary shall submit to the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives a report--
``(A) describing each Sector Partnership Grant awarded to
an eligible partnership during the preceding fiscal year; and
``(B) assessing the impact of each Sector Partnership Grant
awarded in a fiscal year preceding the fiscal year referred to
in subparagraph (A) on workers and employers in communities
impacted by trade.
``SEC. 279B. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to the
Secretary of Labor $40,000,000 for each of the fiscal years 2009 and
2010, and $10,000,000 for the period beginning October 1, 2010, and
ending December 31, 2010, to carry out the Sector Partnership Grant
program under section 279A. Funds appropriated pursuant to this section
shall remain available until expended.
``(b) Supplement Not Supplant.--Funds appropriated pursuant to this
section shall be used to supplement and not supplant other Federal,
State, and local public funds expended to support the economic
development of local communities.
``(c) Administrative Costs.--The Secretary may retain not more than
5 percent of the funds appropriated pursuant to this section for each
fiscal year to administer the Sector Partnership Grant program under
section 279A.
``Subchapter D--General Provisions
``SEC. 279C. RULE OF CONSTRUCTION.
``Nothing in this chapter prevents a worker from receiving trade
adjustment assistance under chapter 2 of this title at the same time
the worker is receiving assistance in any manner from--
``(1) a community receiving a community grant under subchapter
A;
``(2) an eligible institution receiving a Community College and
Career Training Grant under subchapter B; or
``(3) an eligible partnership receiving a Sector Partnership
Grant under subchapter C.''.
SEC. 1873. CONFORMING AMENDMENTS.
(a) Table of Contents.--The table of contents of the Trade Act of
1974 is amended by striking the items relating to chapter 4 of title II
and inserting the following:
``Chapter 4--Trade Adjustment Assistance for Communities
``Subchapter A--Trade Adjustment Assistance for Communities
``Sec. 271. Definitions.
``Sec. 272. Establishment of trade adjustment assistance for communities
program.
``Sec. 273. Eligibility; notification.
``Sec. 274. Technical assistance.
``Sec. 275. Grants for eligible communities.
``Sec. 276. Strategic plans.
``Sec. 277. General provisions.
``Subchapter B--Community College and Career Training Grant Program
``Sec. 278. Community college and career training grant program.
``Sec. 279. Authorization of appropriations.
``Subchapter C--Industry or Sector Partnership Grant Program for
Communities Impacted by Trade
``Sec. 279A. Industry or sector partnership grant program for
communities impacted by trade.
``Sec. 279B. Authorization of appropriations.
``Subchapter D--General Provisions
``Sec. 279C. Rule of construction.''
(b) Judicial Review.--
(1) Section 284(a) of the Trade Act of 1974 (19 U.S.C. 2395(a))
is amended--
(A) by inserting ``or 296'' after ``section 293'';
(B) by striking ``or any other interested domestic party''
and inserting ``or authorized representative of a community'';
and
(C) by striking ``section 271'' and inserting ``section
273''.
(2) Section 1581(d) of title 28, United States Code, is
amended--
(A) in paragraph (2), by striking ``; and'' and inserting a
semicolon;
(B) in paragraph (3)--
(i) by striking ``271'' and inserting ``273''; and
(ii) by striking the period and inserting ``; and'';
and
(C) by adding at the end the following:
``(4) any final determination of the Secretary of Agriculture
under section 293 or 296 of the Trade Act of 1974 (19 U.S.C. 2401b)
with respect to the eligibility of a group of agricultural
commodity producers for adjustment assistance under such Act.''.
PART IV--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS
SEC. 1881. DEFINITIONS.
Section 291 of the Trade Act of 1974 (19 U.S.C. 2401) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Agricultural commodity.--The term `agricultural
commodity' includes--
``(A) any agricultural commodity (including livestock) in
its raw or natural state;
``(B) any class of goods within an agricultural commodity;
and
``(C) in the case of an agricultural commodity producer
described in paragraph (2)(B), wild-caught aquatic species.'';
(2) by amending paragraph (2) to read as follows:
``(2) Agricultural commodity producer.--The term `agricultural
commodity producer' means--
``(A) a person that shares in the risk of producing an
agricultural commodity and that is entitled to a share of the
commodity for marketing, including an operator, a sharecropper,
or a person that owns or rents the land on which the commodity
is produced; or
``(B) a person that reports gain or loss from the trade or
business of fishing on the person's annual Federal income tax
return for the taxable year that most closely corresponds to
the marketing year with respect to which a petition is filed
under section 292.''; and
(3) by adding at the end the following:
``(7) Marketing year.--The term `marketing year' means--
``(A) a marketing year designated by the Secretary with
respect to an agricultural commodity; or
``(B) in the case of an agricultural commodity with respect
to which the Secretary does not designate a marketing year, a
calendar year.''.
SEC. 1882. ELIGIBILITY.
(a) In General.--Section 292 of the Trade Act of 1974 (19 U.S.C.
2401a) is amended by striking subsections (c) through (e) and inserting
the following:
``(c) Group Eligibility Requirements.--The Secretary shall certify
a group of agricultural commodity producers as eligible to apply for
adjustment assistance under this chapter if the Secretary determines
that--
``(1)(A) the national average price of the agricultural
commodity produced by the group during the most recent marketing
year for which data are available is less than 85 percent of the
average of the national average price for the commodity in the 3
marketing years preceding such marketing year;
``(B) the quantity of production of the agricultural commodity
produced by the group during such marketing year is less than 85
percent of the average of the quantity of production of the
commodity produced by the group in the 3 marketing years preceding
such marketing year;
``(C) the value of production of the agricultural commodity
produced by the group during such marketing year is less than 85
percent of the average value of production of the commodity
produced by the group in the 3 marketing years preceding such
marketing year; or
``(D) the cash receipts for the agricultural commodity produced
by the group during such marketing year are less than 85 percent of
the average of the cash receipts for the commodity produced by the
group in the 3 marketing years preceding such marketing year;
``(2) the volume of imports of articles like or directly
competitive with the agricultural commodity produced by the group
in the marketing year with respect to which the group files the
petition increased compared to the average volume of such imports
during the 3 marketing years preceding such marketing year; and
``(3) the increase in such imports contributed importantly to
the decrease in the national average price, quantity of production,
or value of production of, or cash receipts for, the agricultural
commodity, as described in paragraph (1).
``(d) Eligibility of Certain Other Producers.--An agricultural
commodity producer or group of producers that resides outside of the
State or region identified in the petition filed under subsection (a)
may file a request to become a party to that petition not later than 15
days after the date the notice is published in the Federal Register
under subsection (a) with respect to that petition.
``(e) Treatment of Classes of Goods Within a Commodity.--In any
case in which there are separate classes of goods within an
agricultural commodity, the Secretary shall treat each class as a
separate commodity in determining under subsection (c)--
``(1) group eligibility;
``(2) the national average price, quantity of production, or
value of production, or cash receipts; and
``(3) the volume of imports.''.
(b) Conforming Amendments.--Section 293 of the Trade Act of 1974
(19 U.S.C. 2401b) is amended--
(1) in subsection (a), by striking ``section 292 (c) or (d), as
the case may be,'' and inserting ``section 292(c)''; and
(2) in subsection (c), by striking ``decline in price for'' and
inserting ``decrease in the national average price, quantity of
production, or value of production of, or cash receipts for,''.
SEC. 1883. BENEFITS.
(a) In General.--Section 296 of the Trade Act of 1974 (19 U.S.C.
2401e) is amended to read as follows:
``SEC. 296. QUALIFYING REQUIREMENTS AND BENEFITS FOR AGRICULTURAL
COMMODITY PRODUCERS.
``(a) In General.--
``(1) Requirements.--
``(A) In general.--Benefits under this chapter shall be
available to an agricultural commodity producer covered by a
certification under this chapter who files an application for
such benefits not later than 90 days after the date on which
the Secretary makes a determination and issues a certification
of eligibility under section 293, if the producer submits to
the Secretary sufficient information to establish that--
``(i) the producer produced the agricultural commodity
covered by the application filed under this subsection in
the marketing year with respect to which the petition is
filed and in at least 1 of the 3 marketing years preceding
that marketing year;
``(ii)(I) the quantity of the agricultural commodity
that was produced by the producer in the marketing year
with respect to which the petition is filed has decreased
compared to the most recent marketing year preceding that
marketing year for which data are available; or
``(II)(aa) the price received for the agricultural
commodity by the producer during the marketing year with
respect to which the petition is filed has decreased
compared to the average price for the commodity received by
the producer in the 3 marketing years preceding that
marketing year; or
``(bb) the county level price maintained by the
Secretary for the agricultural commodity on the date on
which the petition is filed has decreased compared to the
average county level price for the commodity in the 3
marketing years preceding the date on which the petition is
filed; and
``(iii) the producer is not receiving--
``(I) cash benefits under chapter 2 or 3; or
``(II) benefits based on the production of an
agricultural commodity covered by another petition
filed under this chapter.
``(B) Special rule with respect to crops not grown every
year.--For purposes of subparagraph (A)(ii)(II)(aa), if a
petition is filed with respect to an agricultural commodity
that is not produced by the producer every year, an
agricultural commodity producer producing that commodity may
establish the average price received for the commodity by the
producer in the 3 marketing years preceding the year with
respect to which the petition is filed by using average price
data for the 3 most recent marketing years in which the
producer produced the commodity and for which data are
available.
``(2) Limitations based on adjusted gross income.--
``(A) In general.--Notwithstanding any other provision of
this chapter, an agricultural commodity producer shall not be
eligible for assistance under this chapter in any year in which
the average adjusted gross income (as defined in section
1001D(a) of the Food Security Act of 1985 (7 U.S.C. 1308-
3a(a))) of the producer exceeds the level set forth in
subparagraph (A) or (B) of section 1001D(b)(1) of the Food
Security Act of 1985 (7 U.S.C. 1308-3a(b)(1)), whichever is
applicable.
``(B) Demonstration of compliance.--An agricultural
commodity producer shall provide to the Secretary such
information as the Secretary determines necessary to
demonstrate that the producer is in compliance with the
limitation under subparagraph (A).
``(C) Counter-cyclical and acre payments.--The total amount
of payments made to an agricultural commodity producer under
this chapter during any crop year may not exceed the
limitations on payments set forth in subsections (b)(2),
(b)(3), (c)(2), and (c)(3) of section 1001 of the Food Security
Act of 1985 (7 U.S.C. 1308).
``(b) Technical Assistance.--
``(1) Initial technical assistance.--
``(A) In general.--An agricultural commodity producer that
files an application and meets the requirements under
subsection (a)(1) shall be entitled to receive initial
technical assistance designed to improve the competitiveness of
the production and marketing of the agricultural commodity with
respect to which the producer was certified under this chapter.
Such assistance shall include information regarding--
``(i) improving the yield and marketing of that
agricultural commodity; and
``(ii) the feasibility and desirability of substituting
one or more alternative agricultural commodities for that
agricultural commodity.
``(B) Transportation and subsistence expenses.--
``(i) In general.--The Secretary may authorize
supplemental assistance necessary to defray reasonable
transportation and subsistence expenses incurred by an
agricultural commodity producer in connection with initial
technical assistance under subparagraph (A) if such
assistance is provided at facilities that are not within
normal commuting distance of the regular place of residence
of the producer.
``(ii) Exceptions.--The Secretary may not authorize
payments to an agricultural commodity producer under clause
(i)--
``(I) for subsistence expenses that exceed the
lesser of--
``(aa) the actual per diem expenses for
subsistence incurred by the producer; or
``(bb) the prevailing per diem allowance rate
authorized under Federal travel regulations; or
``(II) for travel expenses that exceed the
prevailing mileage rate authorized under the Federal
travel regulations.
``(2) Intensive technical assistance.--A producer that has
completed initial technical assistance under paragraph (1) shall be
eligible to participate in intensive technical assistance. Such
assistance shall consist of--
``(A) a series of courses to further assist the producer in
improving the competitiveness of the producer in producing--
``(i) the agricultural commodity with respect to which
the producer was certified under this chapter; or
``(ii) another agricultural commodity; and
``(B) assistance in developing an initial business plan
based on the courses completed under subparagraph (A).
``(3) Initial business plan.--
``(A) Approval by secretary.--The Secretary shall approve
an initial business plan developed under paragraph (2)(B) if
the plan--
``(i) reflects the skills gained by the producer
through the courses described in paragraph (2)(A); and
``(ii) demonstrates how the producer will apply those
skills to the circumstances of the producer.
``(B) Financial assistance for implementing initial
business plan.--Upon approval of the producer's initial
business plan by the Secretary under subparagraph (A), a
producer shall be entitled to an amount not to exceed $4,000
to--
``(i) implement the initial business plan; or
``(ii) develop a long-term business adjustment plan
under paragraph (4).
``(4) Long-term business adjustment plan.--
``(A) In general.--A producer that has completed intensive
technical assistance under paragraph (2) and whose initial
business plan has been approved under paragraph (3)(A) shall be
eligible for, in addition to the amount under subparagraph (C),
assistance in developing a long-term business adjustment plan.
``(B) Approval of long-term business adjustment plans.--The
Secretary shall approve a long-term business adjustment plan
developed under subparagraph (A) if the Secretary determines
that the plan--
``(i) includes steps reasonably calculated to
materially contribute to the economic adjustment of the
producer to changing market conditions;
``(ii) takes into consideration the interests of the
workers employed by the producer; and
``(iii) demonstrates that the producer will have
sufficient resources to implement the business plan.
``(C) Plan implementation.--Upon approval of the producer's
long-term business adjustment plan under subparagraph (B), a
producer shall be entitled to an amount not to exceed $8,000 to
implement the long-term business adjustment plan.
``(c) Maximum Amount of Assistance.--An agricultural commodity
producer may receive not more than $12,000 under paragraphs (3) and (4)
of subsection (b) in the 36-month period following certification under
section 293.
``(d) Limitations on Other Assistance.--An agricultural commodity
producer that receives benefits under this chapter (other than initial
technical assistance under subsection (b)(1)) shall not be eligible for
cash benefits under chapter 2 or 3.''.
(b) Clerical Amendment.--The table of contents of the Trade Act of
1974 is amended by striking the item relating to section 296 and
inserting the following:
``Sec. 296. Qualifying requirements and benefits for agricultural
commodity producers.''.
SEC. 1884. REPORT.
Section 293 of the Trade Act of 1974 (19 U.S.C. 2401b) is amended
by adding at the end the following:
``(d) Report by the Secretary.--Not later than January 30, 2010,
and annually thereafter, the Secretary of Agriculture shall submit to
the Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives a report containing the following
information with respect to adjustment assistance provided under this
chapter during the preceding fiscal year:
``(1) A list of the agricultural commodities covered by a
certification under this chapter.
``(2) The States or regions in which such commodities are
produced and the aggregate amount of such commodities produced in
each such State or region.
``(3) The total number of agricultural commodity producers, by
congressional district, receiving benefits under this chapter.
``(4) The total number of agricultural commodity producers, by
congressional district, receiving technical assistance under this
chapter.''.
SEC. 1885. FRAUD AND RECOVERY OF OVERPAYMENTS.
Section 297(a)(1) of the Trade Act of 1974 (19 U.S.C. 2401f(a)(1))
is amended by inserting ``or has expended funds received under this
chapter for a purpose that was not approved by the Secretary,'' after
``entitled,''.
SEC. 1886. DETERMINATION OF INCREASES OF IMPORTS FOR CERTAIN FISHERMEN.
For purposes of chapters 2 and 6 of title II of the Trade Act of
1974 (19 U.S.C. 2251 et seq.), in the case of an agricultural commodity
producer that--
(1) is a fisherman or aquaculture producer, and
(2) is otherwise eligible for adjustment assistance under
chapter 2 or 6, as the case may be,
the increase in imports of articles like or directly competitive with
the agricultural commodity produced by such producer may be based on
imports of wild-caught seafood, farm-raised seafood, or both.
SEC. 1887. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.
Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) is
amended by striking ``fiscal years 2003 through 2007'' and all that
follows through the end period and inserting ``fiscal years 2009 and
2010, and $22,500,000 for the period beginning October 1, 2010, and
ending December 31, 2010, to carry out the purposes of this chapter,
including administrative costs, and salaries and expenses of employees
of the Department of Agriculture.''.
PART V--GENERAL PROVISIONS
SEC. 1891. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided in this subtitle, and
subsection (b) of this section, this subtitle and the amendments made
by this subtitle--
(1) shall take effect upon the expiration of the 90-day period
beginning on the date of the enactment of this Act; and
(2) shall apply to--
(A) petitions for certification filed under chapter 2, 3,
or 6 of title II of the Trade Act of 1974 on or after the
effective date described in paragraph (1); and
(B) petitions for assistance and proposals for grants filed
under chapter 4 of title II of the Trade Act of 1974 on or
after such effective date.
(b) Certifications Made Before Effective Date.--Notwithstanding
subsection (a)--
(1) a worker shall continue to receive (or be eligible to
receive) trade adjustment assistance and other benefits under
subchapter B of chapter 2 of title II of the Trade Act of 1974, as
in effect on the day before the effective date described in
subsection (a)(1), for any week for which the worker meets the
eligibility requirements of such chapter 2 as in effect on the day
before such effective date, if the worker--
(A) is certified as eligible for trade adjustment
assistance benefits under such chapter 2 pursuant to a petition
filed under section 221 of the Trade Act of 1974 on or before
such effective date; and
(B) would otherwise be eligible to receive trade adjustment
assistance benefits under such chapter as in effect on the day
before such effective date;
(2) a worker shall continue to receive (or be eligible to
receive) benefits under section 246(a)(2) of the Trade Act of 1974,
as in effect on the day before the effective date described in
subsection (a)(1), for such period for which the worker meets the
eligibility requirements of section 246 of that Act as in effect on
the day before such effective date, if the worker--
(A) is certified as eligible for benefits under such
section 246 pursuant to a petition filed under section 221 of
the Trade Act of 1974 on or before such effective date; and
(B) would otherwise be eligible to receive benefits under
such section 246(a)(2) as in effect on the day before such
effective date; and
(3) a firm shall continue to receive (or be eligible to
receive) adjustment assistance under chapter 3 of title II of the
Trade Act of 1974, as in effect on the day before the effective
date described in subsection (a)(1), for such period for which the
firm meets the eligibility requirements of such chapter 3 as in
effect on the day before such effective date, if the firm--
(A) is certified as eligible for benefits under such
chapter 3 pursuant to a petition filed under section 251 of the
Trade Act of 1974 on or before such effective date; and
(B) would otherwise be eligible to receive benefits under
such chapter 3 as in effect on the day before such effective
date.
SEC. 1892. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE PROGRAMS.
(a) For Workers.--Section 245(a) of the Trade Act of 1974 (19
U.S.C. 2317(a)) is amended by striking ``December 31, 2007'' and
inserting ``December 31, 2010''.
(b) Termination.--Section 285 of the Trade Act of 1974 (19 U.S.C.
2271 note prec.) is amended--
(1) in subsection (a), by striking ``December 31, 2007'' each
place it appears and inserting ``December 31, 2010''; and
(2) by amending subsection (b) to read as follows:
``(b) Other Assistance.--
``(1) Assistance for firms.--
``(A) In general.--Except as provided in subparagraph (B),
technical assistance and grants may not be provided under
chapter 3 after December 31, 2010.
``(B) Exception.--Notwithstanding subparagraph (A), any
technical assistance or grant approved under chapter 3 on or
before December 31, 2010, may be provided--
``(i) to the extent funds are available pursuant to
such chapter for such purpose; and
``(ii) to the extent the recipient of the technical
assistance or grant is otherwise eligible to receive such
technical assistance or grant, as the case may be.
``(2) Farmers.--
``(A) In general.--Except as provided in subparagraph (B),
technical assistance and financial assistance may not be
provided under chapter 6 after December 31, 2010.
``(B) Exception.--Notwithstanding subparagraph (A), any
technical or financial assistance approved under chapter 6 on
or before December 31, 2010, may be provided--
``(i) to the extent funds are available pursuant to
such chapter for such purpose; and
``(ii) to the extent the recipient of the technical or
financial assistance is otherwise eligible to receive such
technical or financial assistance, as the case may be.
``(3) Assistance for communities.--
``(A) In general.--Except as provided in subparagraph (B),
technical assistance and grants may not be provided under
chapter 4 after December 31, 2010.
``(B) Exception.--Notwithstanding subparagraph (A), any
technical assistance or grant approved under chapter 4 on or
before December 31, 2010, may be provided--
``(i) to the extent funds are available pursuant to
such chapter for such purpose; and
``(ii) to the extent the recipient of the technical
assistance or grant is otherwise eligible to receive such
technical assistance or grant, as the case may be.''.
SEC. 1893. TERMINATION; RELATED PROVISIONS.
(a) Sunset.--
(1) In general.--Subject to paragraph (2), the amendments made
by this subtitle to chapters 2, 3, 4, 5, and 6 of title II of the
Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall not apply on or
after January 1, 2011.
(2) Exception.--The amendments made by this subtitle to section
285 of the Trade Act of 1974 shall continue to apply on and after
January 1, 2011, with respect to--
(A) workers certified as eligible for trade adjustment
assistance benefits under chapter 2 of title II of that Act
pursuant to petitions filed under section 221 of that Act
before January 1, 2011;
(B) firms certified as eligible for technical assistance or
grants under chapter 3 of title II of that Act pursuant to
petitions filed under section 251 of that Act before January 1,
2011;
(C) recipients approved for technical assistance or grants
under chapter 4 of title II of that Act pursuant to petitions
for assistance or proposals for grants (as the case may be)
filed pursuant to such chapter before January 1, 2011; and
(D) agricultural commodity producers certified as eligible
for technical or financial assistance under chapter 6 of title
II of that Act pursuant to petitions filed under section 292 of
that Act before January 1, 2011.
(b) Application of Prior Law.--Chapters 2, 3, 4, 5, and 6 of title
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) shall be applied
and administered beginning January 1, 2011, as if the amendments made
by this subtitle (other than part VI) had never been enacted, except
that in applying and administering such chapters--
(1) section 245 of that Act shall be applied and administered
by substituting ``2011'' for ``2007'';
(2) section 246(b) of that Act shall be applied and
administered by substituting ``December 31, 2011'' for ``the date
that is 5 years'' and all that follows through ``State'';
(3) section 256(b) of that Act shall be applied and
administered by substituting ``the 1-year period beginning January
1, 2011'' for ``each of fiscal years 2003 through 2007, and
$4,000,000 for the 3-month period beginning October 1, 2007'';
(4) section 298(a) of that Act shall be applied and
administered by substituting ``the 1-year period beginning January
1, 2011'' for ``each of the fiscal years'' and all that follows
through ``October 1, 2007''; and
(5) subject to subsection (a)(2), section 285 of that Act shall
be applied and administered--
(A) in subsection (a), by substituting ``2011'' for
``2007'' each place it appears; and
(B) by applying and administering subsection (b) as if it
read as follows:
``(b) Other Assistance.--
``(1) Assistance for firms.--
``(A) In general.--Except as provided in subparagraph (B),
assistance may not be provided under chapter 3 after December
31, 2011.
``(B) Exception.--Notwithstanding subparagraph (A), any
assistance approved under chapter 3 on or before December 31,
2011, may be provided--
``(i) to the extent funds are available pursuant to
such chapter for such purpose; and
``(ii) to the extent the recipient of the assistance is
otherwise eligible to receive such assistance.
``(2) Farmers.--
``(A) In general.--Except as provided in subparagraph (B),
assistance may not be provided under chapter 6 after December
31, 2011.
``(B) Exception.--Notwithstanding subparagraph (A), any
assistance approved under chapter 6 on or before December 31,
2011, may be provided--
``(i) to the extent funds are available pursuant to
such chapter for such purpose; and
``(ii) to the extent the recipient of the assistance is
otherwise eligible to receive such assistance.''.
SEC. 1894. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.
Not later than September 30, 2012, the Comptroller General of the
United States shall prepare and submit to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House of
Representatives a comprehensive report on the operation and
effectiveness of the amendments made by this subtitle to chapters 2, 3,
4, and 6 of the Trade Act of 1974.
SEC. 1895. EMERGENCY DESIGNATION.
Amounts appropriated pursuant to this subtitle are designated as an
emergency requirement and necessary to meet emergency needs pursuant to
section 204(a) of S. Con. Res. 21 (110th Congress) and section
301(b)(2) of S. Con. Res. 70 (110th Congress), the concurrent
resolutions on the budget for fiscal years 2008 and 2009.
PART VI--HEALTH COVERAGE IMPROVEMENT
SEC. 1899. SHORT TITLE.
This part may be cited as the ``TAA Health Coverage Improvement Act
of 2009''.
SEC. 1899A. IMPROVEMENT OF THE AFFORDABILITY OF THE CREDIT.
(a) Improvement of Affordability.--
(1) In general.--Section 35(a) of the Internal Revenue Code of
1986 (relating to credit for health insurance costs of eligible
individuals) is amended by inserting ``(80 percent in the case of
eligible coverage months beginning before January 1, 2011)'' after
``65 percent''.
(2) Conforming amendment.--Section 7527(b) of such Code
(relating to advance payment of credit for health insurance costs
of eligible individuals) is amended by inserting ``(80 percent in
the case of eligible coverage months beginning before January 1,
2011)'' after ``65 percent''.
(b) Effective Date.--The amendments made by this section shall
apply to coverage months beginning on or after the first day of the
first month beginning 60 days after the date of the enactment of this
Act.
SEC. 1899B. PAYMENT FOR MONTHLY PREMIUMS PAID PRIOR TO COMMENCEMENT OF
ADVANCE PAYMENTS OF CREDIT.
(a) Payment for Premiums Due Prior to Commencement of Advance
Payments of Credit.--Section 7527 of the Internal Revenue Code of 1986
(relating to advance payment of credit for health insurance costs of
eligible individuals) is amended by adding at the end the following new
subsection:
``(e) Payment for Premiums Due Prior to Commencement of Advance
Payments.--In the case of eligible coverage months beginning before
January 1, 2011--
``(1) In general.--The program established under subsection (a)
shall provide that the Secretary shall make 1 or more retroactive
payments on behalf of a certified individual in an aggregate amount
equal to 80 percent of the premiums for coverage of the taxpayer
and qualifying family members under qualified health insurance for
eligible coverage months (as defined in section 35(b)) occurring
prior to the first month for which an advance payment is made on
behalf of such individual under subsection (a).
``(2) Reduction of payment for amounts received under national
emergency grants.--The amount of any payment determined under
paragraph (1) shall be reduced by the amount of any payment made to
the taxpayer for the purchase of qualified health insurance under a
national emergency grant pursuant to section 173(f) of the
Workforce Investment Act of 1998 for a taxable year including the
eligible coverage months described in paragraph (1).''.
(b) Effective Date.--The amendments made by this section shall
apply to coverage months beginning after December 31, 2008.
(c) Transitional Rule.--The Secretary of the Treasury shall not be
required to make any payments under section 7527(e) of the Internal
Revenue Code of 1986, as added by this section, until after the date
that is 6 months after the date of the enactment of this Act.
SEC. 1899C. TAA RECIPIENTS NOT ENROLLED IN TRAINING PROGRAMS ELIGIBLE
FOR CREDIT.
(a) In General.--Paragraph (2) of section 35(c) of the Internal
Revenue Code of 1986 (defining eligible TAA recipient) is amended to
read as follows:
``(2) Eligible taa recipient.--
``(A) In general.--Except as provided in subparagraph (B),
the term `eligible TAA recipient' means, with respect to any
month, any individual who is receiving for any day of such
month a trade readjustment allowance under chapter 2 of title
II of the Trade Act of 1974 or who would be eligible to receive
such allowance if section 231 of such Act were applied without
regard to subsection (a)(3)(B) of such section. An individual
shall continue to be treated as an eligible TAA recipient
during the first month that such individual would otherwise
cease to be an eligible TAA recipient by reason of the
preceding sentence.
``(B) Special rule.--In the case of any eligible coverage
month beginning after the date of the enactment of this
paragraph and before January 1, 2011, the term `eligible TAA
recipient' means, with respect to any month, any individual
who--
``(i) is receiving for any day of such month a trade
readjustment allowance under chapter 2 of title II of the
Trade Act of 1974,
``(ii) would be eligible to receive such allowance
except that such individual is in a break in training
provided under a training program approved under section
236 of such Act that exceeds the period specified in
section 233(e) of such Act, but is within the period for
receiving such allowances provided under section 233(a) of
such Act, or
``(iii) is receiving unemployment compensation (as
defined in section 85(b)) for any day of such month and who
would be eligible to receive such allowance for such month
if section 231 of such Act were applied without regard to
subsections (a)(3)(B) and (a)(5) thereof.
An individual shall continue to be treated as an eligible TAA
recipient during the first month that such individual would
otherwise cease to be an eligible TAA recipient by reason of
the preceding sentence.''.
(b) Effective Date.--The amendment made by this section shall apply
to coverage months beginning after the date of the enactment of this
Act.
SEC. 1899D. TAA PRE-CERTIFICATION PERIOD RULE FOR PURPOSES OF
DETERMINING WHETHER THERE IS A 63-DAY LAPSE IN CREDITABLE
COVERAGE.
(a) IRC Amendment.--Section 9801(c)(2) of the Internal Revenue Code
of 1986 (relating to not counting periods before significant breaks in
creditable coverage) is amended by adding at the end the following new
subparagraph:
``(D) TAA-eligible individuals.--In the case of plan years
beginning before January 1, 2011--
``(i) TAA pre-certification period rule.--In the case
of a TAA-eligible individual, the period beginning on the
date the individual has a TAA-related loss of coverage and
ending on the date which is 7 days after the date of the
issuance by the Secretary (or by any person or entity
designated by the Secretary) of a qualified health
insurance costs credit eligibility certificate for such
individual for purposes of section 7527 shall not be taken
into account in determining the continuous period under
subparagraph (A).
``(ii) Definitions.--The terms `TAA-eligible
individual' and `TAA-related loss of coverage' have the
meanings given such terms in section 4980B(f)(5)(C)(iv).''.
(b) ERISA Amendment.--Section 701(c)(2) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1181(c)(2)) is amended by adding
at the end the following new subparagraph:
``(C) TAA-eligible individuals.--In the case of plan years
beginning before January 1, 2011--
``(i) TAA pre-certification period rule.--In the case
of a TAA-eligible individual, the period beginning on the
date the individual has a TAA-related loss of coverage and
ending on the date that is 7 days after the date of the
issuance by the Secretary (or by any person or entity
designated by the Secretary) of a qualified health
insurance costs credit eligibility certificate for such
individual for purposes of section 7527 of the Internal
Revenue Code of 1986 shall not be taken into account in
determining the continuous period under subparagraph (A).
``(ii) Definitions.--The terms `TAA-eligible
individual' and `TAA-related loss of coverage' have the
meanings given such terms in section 605(b)(4).''.
(c) PHSA Amendment.--Section 2701(c)(2) of the Public Health
Service Act (42 U.S.C. 300gg(c)(2)) is amended by adding at the end the
following new subparagraph:
``(C) TAA-eligible individuals.--In the case of plan years
beginning before January 1, 2011--
``(i) TAA pre-certification period rule.--In the case
of a TAA-eligible individual, the period beginning on the
date the individual has a TAA-related loss of coverage and
ending on the date that is 7 days after the date of the
issuance by the Secretary (or by any person or entity
designated by the Secretary) of a qualified health
insurance costs credit eligibility certificate for such
individual for purposes of section 7527 of the Internal
Revenue Code of 1986 shall not be taken into account in
determining the continuous period under subparagraph (A).
``(ii) Definitions.--The terms `TAA-eligible
individual' and `TAA-related loss of coverage' have the
meanings given such terms in section 2205(b)(4).''.
(d) Effective Date.--The amendments made by this section shall
apply to plan years beginning after the date of the enactment of this
Act.
SEC. 1899E. CONTINUED QUALIFICATION OF FAMILY MEMBERS AFTER CERTAIN
EVENTS.
(a) In General.--Subsection (g) of section 35 of such Code is
amended by redesignating paragraph (9) as paragraph (10) and inserting
after paragraph (8) the following new paragraph:
``(9) Continued qualification of family members after certain
events.--In the case of eligible coverage months beginning before
January 1, 2011--
``(A) Medicare eligibility.--In the case of any month which
would be an eligible coverage month with respect to an eligible
individual but for subsection (f)(2)(A), such month shall be
treated as an eligible coverage month with respect to such
eligible individual solely for purposes of determining the
amount of the credit under this section with respect to any
qualifying family members of such individual (and any advance
payment of such credit under section 7527). This subparagraph
shall only apply with respect to the first 24 months after such
eligible individual is first entitled to the benefits described
in subsection (f)(2)(A).
``(B) Divorce.--In the case of the finalization of a
divorce between an eligible individual and such individual's
spouse, such spouse shall be treated as an eligible individual
for purposes of this section and section 7527 for a period of
24 months beginning with the date of such finalization, except
that the only qualifying family members who may be taken into
account with respect to such spouse are those individuals who
were qualifying family members immediately before such
finalization.
``(C) Death.--In the case of the death of an eligible
individual--
``(i) any spouse of such individual (determined at the
time of such death) shall be treated as an eligible
individual for purposes of this section and section 7527
for a period of 24 months beginning with the date of such
death, except that the only qualifying family members who
may be taken into account with respect to such spouse are
those individuals who were qualifying family members
immediately before such death, and
``(ii) any individual who was a qualifying family
member of the decedent immediately before such death (or,
in the case of an individual to whom paragraph (4) applies,
the taxpayer to whom the deduction under section 151 is
allowable) shall be treated as an eligible individual for
purposes of this section and section 7527 for a period of
24 months beginning with the date of such death, except
that in determining the amount of such credit only such
qualifying family member may be taken into account.''.
(b) Conforming Amendment.--Section 173(f) of the Workforce
Investment Act of 1998 (29 U.S.C. 2918(f)) is amended by adding at the
end the following:
``(8) Continued qualification of family members after certain
events.--In the case of eligible coverage months beginning before
January 1, 2011--
``(A) Medicare eligibility.--In the case of any month which
would be an eligible coverage month with respect to an eligible
individual but for paragraph (7)(B)(i), such month shall be
treated as an eligible coverage month with respect to such
eligible individual solely for purposes of determining the
eligibility of qualifying family members of such individual
under this subsection. This subparagraph shall only apply with
respect to the first 24 months after such eligible individual
is first entitled to the benefits described in paragraph
(7)(B)(i).
``(B) Divorce.--In the case of the finalization of a
divorce between an eligible individual and such individual's
spouse, such spouse shall be treated as an eligible individual
for purposes of this subsection for a period of 24 months
beginning with the date of such finalization, except that the
only qualifying family members who may be taken into account
with respect to such spouse are those individuals who were
qualifying family members immediately before such finalization.
``(C) Death.--In the case of the death of an eligible
individual--
``(i) any spouse of such individual (determined at the
time of such death) shall be treated as an eligible
individual for purposes of this subsection for a period of
24 months beginning with the date of such death, except
that the only qualifying family members who may be taken
into account with respect to such spouse are those
individuals who were qualifying family members immediately
before such death, and
``(ii) any individual who was a qualifying family
member of the decedent immediately before such death shall
be treated as an eligible individual for purposes this
subsection for a period of 24 months beginning with the
date of such death, except that no qualifying family
members may be taken into account with respect to such
individual.''.
(c) Effective Date.--The amendments made by this section shall
apply to months beginning after December 31, 2009.
SEC. 1899F. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE
INDIVIDUALS AND PBGC RECIPIENTS.
(a) ERISA Amendments.--Section 602(2)(A) of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) is amended--
(1) by moving clause (v) to after clause (iv) and before the
flush left sentence beginning with ``In the case of a qualified
beneficiary'';
(2) by striking ``In the case of a qualified beneficiary'' and
inserting the following:
``(vi) Special rule for disability.--In the case of a
qualified beneficiary''; and
(3) by redesignating clauses (v) and (vi), as amended by
paragraphs (1) and (2), as clauses (vii) and (viii), respectively,
and by inserting after clause (iv) the following new clauses:
``(v) Special rule for pbgc recipients.--In the case of
a qualifying event described in section 603(2) with respect
to a covered employee who (as of such qualifying event) has
a nonforfeitable right to a benefit any portion of which is
to be paid by the Pension Benefit Guaranty Corporation
under title IV, notwithstanding clause (i) or (ii), the
date of the death of the covered employee, or in the case
of the surviving spouse or dependent children of the
covered employee, 24 months after the date of the death of
the covered employee. The preceding sentence shall not
require any period of coverage to extend beyond December
31, 2010.
``(vi) Special rule for taa-eligible individuals.--In
the case of a qualifying event described in section 603(2)
with respect to a covered employee who is (as of the date
that the period of coverage would, but for this clause or
clause (vii), otherwise terminate under clause (i) or (ii))
a TAA-eligible individual (as defined in section
605(b)(4)(B)), the period of coverage shall not terminate
by reason of clause (i) or (ii), as the case may be, before
the later of the date specified in such clause or the date
on which such individual ceases to be such a TAA-eligible
individual. The preceding sentence shall not require any
period of coverage to extend beyond December 31, 2010.''.
(b) IRC Amendments.--Clause (i) of section 4980B(f)(2)(B) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``In the case of a qualified beneficiary'' and
inserting the following:
``(VI) Special rule for disability.--In the case of
a qualified beneficiary'', and
(2) by redesignating subclauses (V) and (VI), as amended by
paragraph (1), as subclauses (VII) and (VIII), respectively, and by
inserting after clause (IV) the following new subclauses:
``(V) Special rule for pbgc recipients.--In the
case of a qualifying event described in paragraph
(3)(B) with respect to a covered employee who (as of
such qualifying event) has a nonforfeitable right to a
benefit any portion of which is to be paid by the
Pension Benefit Guaranty Corporation under title IV of
the Employee Retirement Income Security Act of 1974,
notwithstanding subclause (I) or (II), the date of the
death of the covered employee, or in the case of the
surviving spouse or dependent children of the covered
employee, 24 months after the date of the death of the
covered employee. The preceding sentence shall not
require any period of coverage to extend beyond
December 31, 2010.
``(VI) Special rule for taa-eligible individuals.--
In the case of a qualifying event described in
paragraph (3)(B) with respect to a covered employee who
is (as of the date that the period of coverage would,
but for this subclause or subclause (VII), otherwise
terminate under subclause (I) or (II)) a TAA-eligible
individual (as defined in paragraph (5)(C)(iv)(II)),
the period of coverage shall not terminate by reason of
subclause (I) or (II), as the case may be, before the
later of the date specified in such subclause or the
date on which such individual ceases to be such a TAA-
eligible individual. The preceding sentence shall not
require any period of coverage to extend beyond
December 31, 2010.''.
(c) PHSA Amendments.--Section 2202(2)(A) of the Public Health
Service Act (42 U.S.C. 300bb-2(2)(A)) is amended--
(1) by striking ``In the case of a qualified beneficiary'' and
inserting the following:
``(v) Special rule for disability.--In the case of a
qualified beneficiary''; and
(2) by redesignating clauses (iv) and (v), as amended by
paragraph (1), as clauses (v) and (vi), respectively, and by
inserting after clause (iii) the following new clause:
``(iv) Special rule for taa-eligible individuals.--In
the case of a qualifying event described in section 2203(2)
with respect to a covered employee who is (as of the date
that the period of coverage would, but for this clause or
clause (v), otherwise terminate under clause (i) or (ii)) a
TAA-eligible individual (as defined in section
2205(b)(4)(B)), the period of coverage shall not terminate
by reason of clause (i) or (ii), as the case may be, before
the later of the date specified in such clause or the date
on which such individual ceases to be such a TAA-eligible
individual. The preceding sentence shall not require any
period of coverage to extend beyond December 31, 2010.''.
(d) Effective Date.--The amendments made by this section shall
apply to periods of coverage which would (without regard to the
amendments made by this section) end on or after the date of the
enactment of this Act.
SEC. 1899G. ADDITION OF COVERAGE THROUGH VOLUNTARY EMPLOYEES'
BENEFICIARY ASSOCIATIONS.
(a) In General.--Paragraph (1) of section 35(e) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(K) In the case of eligible coverage months beginning
before January 1, 2011, coverage under an employee benefit plan
funded by a voluntary employees' beneficiary association (as
defined in section 501(c)(9)) established pursuant to an order
of a bankruptcy court, or by agreement with an authorized
representative, as provided in section 1114 of title 11, United
States Code.''.
(b) Effective Date.--The amendments made by this section shall
apply to coverage months beginning after the date of the enactment of
this Act.
SEC. 1899H. NOTICE REQUIREMENTS.
(a) In General.--Subsection (d) of section 7527 of the Internal
Revenue Code of 1986 (relating to qualified health insurance costs
credit eligibility certificate) is amended to read as follows:
``(d) Qualified Health Insurance Costs Eligibility Certificate.--
``(1) In general.--For purposes of this section, the term
`qualified health insurance costs eligibility certificate' means
any written statement that an individual is an eligible individual
(as defined in section 35(c)) if such statement provides such
information as the Secretary may require for purposes of this
section and--
``(A) in the case of an eligible TAA recipient (as defined
in section 35(c)(2)) or an eligible alternative TAA recipient
(as defined in section 35(c)(3)), is certified by the Secretary
of Labor (or by any other person or entity designated by the
Secretary), or
``(B) in the case of an eligible PBGC pension recipient (as
defined in section 35(c)(4)), is certified by the Pension
Benefit Guaranty Corporation (or by any other person or entity
designated by the Secretary).
``(2) Inclusion of certain information.--In the case of any
statement described in paragraph (1) which is issued before January
1, 2011, such statement shall not be treated as a qualified health
insurance costs credit eligibility certificate unless such
statement includes--
``(A) the name, address, and telephone number of the State
office or offices responsible for providing the individual with
assistance with enrollment in qualified health insurance (as
defined in section 35(e)),
``(B) a list of the coverage options that are treated as
qualified health insurance (as so defined) by the State in
which the individual resides, and
``(C) in the case of a TAA-eligible individual (as defined
in section 4980B(f)(5)(C)(iv)(II)), a statement informing the
individual that the individual has 63 days from the date that
is 7 days after the date of the issuance of such certificate to
enroll in such insurance without a lapse in creditable coverage
(as defined in section 9801(c)).''.
(b) Effective Date.--The amendment made by this section shall apply
to certificates issued after the date that is 6 months after the date
of the enactment of this Act.
SEC. 1899I. SURVEY AND REPORT ON ENHANCED HEALTH COVERAGE TAX CREDIT
PROGRAM.
(a) Survey.--
(1) In general.--The Secretary of the Treasury shall conduct a
biennial survey of eligible individuals (as defined in section
35(c) of the Internal Revenue Code of 1986) relating to the health
coverage tax credit under section 35 of the Internal Revenue Code
of 1986 (hereinafter in this section referred to as the ``health
coverage tax credit'').
(2) Information obtained.--The survey conducted under
subsection (a) shall obtain the following information:
(A) HCTC participants.--In the case of eligible individuals
receiving the health coverage tax credit (including individuals
participating in the health coverage tax credit program under
section 7527 of such Code, hereinafter in this section referred
to as the ``HCTC program'')--
(i) demographic information of such individuals,
including income and education levels,
(ii) satisfaction of such individuals with the
enrollment process in the HCTC program,
(iii) satisfaction of such individuals with available
health coverage options under the credit, including level
of premiums, benefits, deductibles, cost-sharing
requirements, and the adequacy of provider networks, and
(iv) any other information that the Secretary
determines is appropriate.
(B) Non-HCTC participants.--In the case of eligible
individuals not receiving the health coverage tax credit--
(i) demographic information of each individual,
including income and education levels,
(ii) whether the individual was aware of the health
coverage tax credit or the HCTC program,
(iii) the reasons the individual has not enrolled in
the HCTC program, including whether such reasons include
the burden of the process of enrollment and the
affordability of coverage,
(iv) whether the individual has health insurance
coverage, and, if so, the source of such coverage, and
(v) any other information that the Secretary determines
is appropriate.
(3) Report.--Not later than December 31 of each year in which a
survey is conducted under paragraph (1) (beginning in 2010), the
Secretary of the Treasury shall report to the Committee on Finance
and the Committee on Health, Education, Labor, and Pensions of the
Senate and the Committee on Ways and Means, the Committee on
Education and Labor, and the Committee on Energy and Commerce of
the House of Representatives the findings of the most recent survey
conducted under paragraph (1).
(b) Report.--Not later than October 1 of each year (beginning in
2010), the Secretary of the Treasury (after consultation with the
Secretary of Health and Human Services, and, in the case of the
information required under paragraph (7), the Secretary of Labor) shall
report to the Committee on Finance and the Committee on Health,
Education, Labor, and Pensions of the Senate and the Committee on Ways
and Means, the Committee on Education and Labor, and the Committee on
Energy and Commerce of the House of Representatives the following
information with respect to the most recent taxable year ending before
such date:
(1) In each State and nationally--
(A) the total number of eligible individuals (as defined in
section 35(c) of the Internal Revenue Code of 1986) and the
number of eligible individuals receiving the health coverage
tax credit,
(B) the total number of such eligible individuals who
receive an advance payment of the health coverage tax credit
through the HCTC program,
(C) the average length of the time period of the
participation of eligible individuals in the HCTC program, and
(D) the total number of participating eligible individuals
in the HCTC program who are enrolled in each category of
coverage as described in section 35(e)(1) of such Code,
with respect to each category of eligible individuals described in
section 35(c)(1) of such Code.
(2) In each State and nationally, an analysis of--
(A) the range of monthly health insurance premiums, for
self-only coverage and for family coverage, for individuals
receiving the health coverage tax credit, and
(B) the average and median monthly health insurance
premiums, for self-only coverage and for family coverage, for
individuals receiving the health coverage tax credit,
with respect to each category of coverage as described in section
35(e)(1) of such Code.
(3) In each State and nationally, an analysis of the following
information with respect to the health insurance coverage of
individuals receiving the health coverage tax credit who are
enrolled in coverage described in subparagraphs (B) through (H) of
section 35(e)(1) of such Code:
(A) Deductible amounts.
(B) Other out-of-pocket cost-sharing amounts.
(C) A description of any annual or lifetime limits on
coverage or any other significant limits on coverage services,
or benefits.
The information required under this paragraph shall be reported
with respect to each category of coverage described in such
subparagraphs.
(4) In each State and nationally, the gender and average age of
eligible individuals (as defined in section 35(c) of such Code) who
receive the health coverage tax credit, in each category of
coverage described in section 35(e)(1) of such Code, with respect
to each category of eligible individuals described in such section.
(5) The steps taken by the Secretary of the Treasury to
increase the participation rates in the HCTC program among eligible
individuals, including outreach and enrollment activities.
(6) The cost of administering the HCTC program by function,
including the cost of subcontractors, and recommendations on ways
to reduce administrative costs, including recommended statutory
changes.
(7) The number of States applying for and receiving national
emergency grants under section 173(f) of the Workforce Investment
Act of 1998 (29 U.S.C. 2918(f)), the activities funded by such
grants on a State-by-State basis, and the time necessary for
application approval of such grants.
SEC. 1899J. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated $80,000,000 for the period
of fiscal years 2009 through 2010 to implement the amendments made by,
and the provisions of, sections 1899 through 1899I of this part.
SEC. 1899K. EXTENSION OF NATIONAL EMERGENCY GRANTS.
(a) In General.--Section 173(f) of the Workforce Investment Act of
1998 (29 U.S.C. 2918(f)), as amended by this Act, is amended--
(1) by striking paragraph (1) and inserting the following new
paragraph:
``(1) Use of funds.--
``(A) Health insurance coverage for eligible individuals in
order to obtain qualified health insurance that has guaranteed
issue and other consumer protections.--Funds made available to
a State or entity under paragraph (4)(A) of subsection (a) may
be used to provide an eligible individual described in
paragraph (4)(C) and such individual's qualifying family
members with health insurance coverage for the 3-month period
that immediately precedes the first eligible coverage month (as
defined in section 35(b) of the Internal Revenue Code of 1986)
in which such eligible individual and such individual's
qualifying family members are covered by qualified health
insurance that meets the requirements described in clauses (i)
through (v) of section 35(e)(2)(A) of the Internal Revenue Code
of 1986 (or such longer minimum period as is necessary in order
for such eligible individual and such individual's qualifying
family members to be covered by qualified health insurance that
meets such requirements).
``(B) Additional uses.--Funds made available to a State or
entity under paragraph (4)(A) of subsection (a) may be used by
the State or entity for the following:
``(i) Health insurance coverage.--To assist an eligible
individual and such individual's qualifying family members
with enrolling in health insurance coverage and qualified
health insurance or paying premiums for such coverage or
insurance.
``(ii) Administrative expenses and start-up expenses to
establish group health plan coverage options for qualified
health insurance.--To pay the administrative expenses
related to the enrollment of eligible individuals and such
individuals' qualifying family members in health insurance
coverage and qualified health insurance, including--
``(I) eligibility verification activities;
``(II) the notification of eligible individuals of
available health insurance and qualified health
insurance options;
``(III) processing qualified health insurance costs
credit eligibility certificates provided for under
section 7527 of the Internal Revenue Code of 1986;
``(IV) providing assistance to eligible individuals
in enrolling in health insurance coverage and qualified
health insurance;
``(V) the development or installation of necessary
data management systems; and
``(VI) any other expenses determined appropriate by
the Secretary, including start-up costs and on going
administrative expenses, in order for the State to
treat the coverage described in subparagraphs (C)
through (H) of section 35(e)(1) of the Internal Revenue
Code of 1986 as qualified health insurance under that
section.
``(iii) Outreach.--To pay for outreach to eligible
individuals to inform such individuals of available health
insurance and qualified health insurance options, including
outreach consisting of notice to eligible individuals of
such options made available after the date of enactment of
this clause and direct assistance to help potentially
eligible individuals and such individual's qualifying
family members qualify and remain eligible for the credit
established under section 35 of the Internal Revenue Code
of 1986 and advance payment of such credit under section
7527 of such Code.
``(iv) Bridge funding.--To assist potentially eligible
individuals to purchase qualified health insurance coverage
prior to issuance of a qualified health insurance costs
credit eligibility certificate under section 7527 of the
Internal Revenue Code of 1986 and commencement of advance
payment, and receipt of expedited payment, under
subsections (a) and (e), respectively, of that section.
``(C) Rule of construction.--The inclusion of a permitted
use under this paragraph shall not be construed as prohibiting
a similar use of funds permitted under subsection (g).''; and
(2) by striking paragraph (2) and inserting the following new
paragraph:
``(2) Qualified health insurance.--For purposes of this
subsection and subsection (g), the term `qualified health
insurance' has the meaning given that term in section 35(e) of the
Internal Revenue Code of 1986.''.
(b) Funding.--Section 174(c)(1) of the Workforce Investment Act of
1998 (29 U.S.C. 2919(c)(1)) is amended--
(1) in the paragraph heading, by striking ``Authorization and
appropriation for fiscal year 2002'' and inserting
``Appropriations''; and
(2) by striking subparagraph (A) and inserting the following
new subparagraph:
``(A) to carry out subsection (a)(4)(A) of section 173--
``(i) $10,000,000 for fiscal year 2002; and
``(ii) $150,000,000 for the period of fiscal years 2009
through 2010; and''.
SEC. 1899L. GAO STUDY AND REPORT.
(a) Study.--The Comptroller General of the United States shall
conduct a study regarding the health insurance tax credit allowed under
section 35 of the Internal Revenue Code of 1986.
(b) Report.--Not later than March 1, 2010, the Comptroller General
shall submit a report to Congress regarding the results of the study
conducted under subsection (a). Such report shall include an analysis
of--
(1) the administrative costs--
(A) of the Federal Government with respect to such credit
and the advance payment of such credit under section 7527 of
such Code, and
(B) of providers of qualified health insurance with respect
to providing such insurance to eligible individuals and their
qualifying family members,
(2) the health status and relative risk status of eligible
individuals and qualifying family members covered under such
insurance,
(3) participation in such credit and the advance payment of
such credit by eligible individuals and their qualifying family
members, including the reasons why such individuals did or did not
participate and the effect of the amendments made by this part on
such participation, and
(4) the extent to which eligible individuals and their
qualifying family members--
(A) obtained health insurance other than qualifying health
insurance, or
(B) went without health insurance coverage.
(c) Access to Records.--For purposes of conducting the study
required under this section, the Comptroller General and any of his
duly authorized representatives shall have access to, and the right to
examine and copy, all documents, records, and other recorded
information--
(1) within the possession or control of providers of qualified
health insurance, and
(2) determined by the Comptroller General (or any such
representative) to be relevant to the study.
The Comptroller General shall not disclose the identity of any provider
of qualified health insurance or any eligible individual in making any
information obtained under this section available to the public.
(d) Definitions.--Any term which is defined in section 35 of the
Internal Revenue Code of 1986 shall have the same meaning when used in
this section.
TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
SEC. 2000. SHORT TITLE; TABLE OF CONTENTS OF TITLE.
(a) Short Title.--This title may be cited as the ``Assistance for
Unemployed Workers and Struggling Families Act''.
(b) Table of Contents of Title.--The table of contents of this
title is as follows:
TITLE II--ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING FAMILIES
Sec. 2000. Short title; table of contents of title.
Subtitle A--Unemployment Insurance
Sec. 2001. Extension of emergency unemployment compensation program.
Sec. 2002. Increase in unemployment compensation benefits.
Sec. 2003. Special transfers for unemployment compensation
modernization.
Sec. 2004. Temporary assistance for states with advances.
Sec. 2005. Full Federal funding of extended unemployment compensation
for a limited period.
Sec. 2006. Temporary increase in extended unemployment benefits under
the Railroad Unemployment Insurance Act.
Subtitle B--Assistance for Vulnerable Individuals
Sec. 2101. Emergency fund for TANF program.
Sec. 2102. Extension of TANF supplemental grants.
Sec. 2103. Clarification of authority of States to use TANF funds
carried over from prior years to provide TANF benefits and
services.
Sec. 2104. Temporary resumption of prior child support law.
Subtitle C--Economic Recovery Payments to Certain Individuals
Sec. 2201. Economic recovery payment to recipients of social security,
supplemental security income, railroad retirement benefits,
and veterans disability compensation or pension benefits.
Sec. 2202. Special credit for certain government retirees.
Subtitle A--Unemployment Insurance
SEC. 2001. EXTENSION OF EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.
(a) In General.--Section 4007 of the Supplemental Appropriations
Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by
section 4 of the Unemployment Compensation Extension Act of 2008
(Public Law 110-449; 122 Stat. 5015), is amended--
(1) by striking ``March 31, 2009'' each place it appears and
inserting ``December 31, 2009'';
(2) in the heading for subsection (b)(2), by striking ``march
31, 2009'' and inserting ``december 31, 2009''; and
(3) in subsection (b)(3), by striking ``August 27, 2009'' and
inserting ``May 31, 2010''.
(b) Financing Provisions.--Section 4004 of such Act is amended by
adding at the end the following:
``(e) Transfer of Funds.--Notwithstanding any other provision of
law, the Secretary of the Treasury shall transfer from the general fund
of the Treasury (from funds not otherwise appropriated)--
``(1) to the extended unemployment compensation account (as
established by section 905 of the Social Security Act) such sums as
the Secretary of Labor estimates to be necessary to make payments
to States under this title by reason of the amendments made by
section 2001(a) of the Assistance for Unemployed Workers and
Struggling Families Act; and
``(2) to the employment security administration account (as
established by section 901 of the Social Security Act) such sums as
the Secretary of Labor estimates to be necessary for purposes of
assisting States in meeting administrative costs by reason of the
amendments referred to in paragraph (1).
There are appropriated from the general fund of the Treasury, without
fiscal year limitation, the sums referred to in the preceding sentence
and such sums shall not be required to be repaid.''.
SEC. 2002. INCREASE IN UNEMPLOYMENT COMPENSATION BENEFITS.
(a) Federal-State Agreements.--Any State which desires to do so may
enter into and participate in an agreement under this section with the
Secretary of Labor (hereinafter in this section referred to as the
``Secretary''). Any State which is a party to an agreement under this
section may, upon providing 30 days' written notice to the Secretary,
terminate such agreement.
(b) Provisions of Agreement.--
(1) Additional compensation.--Any agreement under this section
shall provide that the State agency of the State will make payments
of regular compensation to individuals in amounts and to the extent
that they would be determined if the State law of the State were
applied, with respect to any week for which the individual is
(disregarding this section) otherwise entitled under the State law
to receive regular compensation, as if such State law had been
modified in a manner such that the amount of regular compensation
(including dependents' allowances) payable for any week shall be
equal to the amount determined under the State law (before the
application of this paragraph) plus an additional $25.
(2) Allowable methods of payment.--Any additional compensation
provided for in accordance with paragraph (1) shall be payable
either--
(A) as an amount which is paid at the same time and in the
same manner as any regular compensation otherwise payable for
the week involved; or
(B) at the option of the State, by payments which are made
separately from, but on the same weekly basis as, any regular
compensation otherwise payable.
(c) Nonreduction Rule.--An agreement under this section shall not
apply (or shall cease to apply) with respect to a State upon a
determination by the Secretary that the method governing the
computation of regular compensation under the State law of that State
has been modified in a manner such that--
(1) the average weekly benefit amount of regular compensation
which will be payable during the period of the agreement
(determined disregarding any additional amounts attributable to the
modification described in subsection (b)(1)) will be less than
(2) the average weekly benefit amount of regular compensation
which would otherwise have been payable during such period under
the State law, as in effect on December 31, 2008.
(d) Payments to States.--
(1) In general.--
(A) Full reimbursement.--There shall be paid to each State
which has entered into an agreement under this section an
amount equal to 100 percent of--
(i) the total amount of additional compensation (as
described in subsection (b)(1)) paid to individuals by the
State pursuant to such agreement; and
(ii) any additional administrative expenses incurred by
the State by reason of such agreement (as determined by the
Secretary).
(B) Terms of payments.--Sums payable to any State by reason
of such State's having an agreement under this section shall be
payable, either in advance or by way of reimbursement (as
determined by the Secretary), in such amounts as the Secretary
estimates the State will be entitled to receive under this
section for each calendar month, reduced or increased, as the
case may be, by any amount by which the Secretary finds that
his estimates for any prior calendar month were greater or less
than the amounts which should have been paid to the State. Such
estimates may be made on the basis of such statistical,
sampling, or other method as may be agreed upon by the
Secretary and the State agency of the State involved.
(2) Certifications.--The Secretary shall from time to time
certify to the Secretary of the Treasury for payment to each State
the sums payable to such State under this section.
(3) Appropriation.--There are appropriated from the general
fund of the Treasury, without fiscal year limitation, such sums as
may be necessary for purposes of this subsection.
(e) Applicability.--
(1) In general.--An agreement entered into under this section
shall apply to weeks of unemployment--
(A) beginning after the date on which such agreement is
entered into; and
(B) ending before January 1, 2010.
(2) Transition rule for individuals remaining entitled to
regular compensation as of january 1, 2010.--In the case of any
individual who, as of the date specified in paragraph (1)(B), has
not yet exhausted all rights to regular compensation under the
State law of a State with respect to a benefit year that began
before such date, additional compensation (as described in
subsection (b)(1)) shall continue to be payable to such individual
for any week beginning on or after such date for which the
individual is otherwise eligible for regular compensation with
respect to such benefit year.
(3) Termination.--Notwithstanding any other provision of this
subsection, no additional compensation (as described in subsection
(b)(1)) shall be payable for any week beginning after June 30,
2010.
(f) Fraud and Overpayments.--The provisions of section 4005 of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 122 Stat.
2356) shall apply with respect to additional compensation (as described
in subsection (b)(1)) to the same extent and in the same manner as in
the case of emergency unemployment compensation.
(g) Application to Other Unemployment Benefits.--
(1) In general.--Each agreement under this section shall
include provisions to provide that the purposes of the preceding
provisions of this section shall be applied with respect to
unemployment benefits described in subsection (i)(3) to the same
extent and in the same manner as if those benefits were regular
compensation.
(2) Eligibility and termination rules.--Additional compensation
(as described in subsection (b)(1))--
(A) shall not be payable, pursuant to this subsection, with
respect to any unemployment benefits described in subsection
(i)(3) for any week beginning on or after the date specified in
subsection (e)(1)(B), except in the case of an individual who
was eligible to receive additional compensation (as so
described) in connection with any regular compensation or any
unemployment benefits described in subsection (i)(3) for any
period of unemployment ending before such date; and
(B) shall in no event be payable for any week beginning
after the date specified in subsection (e)(3).
(h) Disregard of Additional Compensation for Purposes of Medicaid
and SCHIP.--The monthly equivalent of any additional compensation paid
under this section shall be disregarded in considering the amount of
income of an individual for any purposes under title XIX and title XXI
of the Social Security Act.
(i) Definitions.--For purposes of this section--
(1) the terms ``compensation'', ``regular compensation'',
``benefit year'', ``State'', ``State agency'', ``State law'', and
``week'' have the respective meanings given such terms under
section 205 of the Federal-State Extended Unemployment Compensation
Act of 1970 (26 U.S.C. 3304 note);
(2) the term ``emergency unemployment compensation'' means
emergency unemployment compensation under title IV of the
Supplemental Appropriations Act, 2008 (Public Law 110-252; 122
Stat. 2353); and
(3) any reference to unemployment benefits described in this
paragraph shall be considered to refer to--
(A) extended compensation (as defined by section 205 of the
Federal-State Extended Unemployment Compensation Act of 1970);
and
(B) unemployment compensation (as defined by section 85(b)
of the Internal Revenue Code of 1986) provided under any
program administered by a State under an agreement with the
Secretary.
SEC. 2003. SPECIAL TRANSFERS FOR UNEMPLOYMENT COMPENSATION
MODERNIZATION.
(a) In General.--Section 903 of the Social Security Act (42 U.S.C.
1103) is amended by adding at the end the following:
``Special Transfers in Fiscal Years 2009, 2010, and 2011 for
Modernization
``(f)(1)(A) In addition to any other amounts, the Secretary of
Labor shall provide for the making of unemployment compensation
modernization incentive payments (hereinafter `incentive payments') to
the accounts of the States in the Unemployment Trust Fund, by transfer
from amounts reserved for that purpose in the Federal unemployment
account, in accordance with succeeding provisions of this subsection.
``(B) The maximum incentive payment allowable under this subsection
with respect to any State shall, as determined by the Secretary of
Labor, be equal to the amount obtained by multiplying $7,000,000,000 by
the same ratio as would apply under subsection (a)(2)(B) for purposes
of determining such State's share of any excess amount (as described in
subsection (a)(1)) that would have been subject to transfer to State
accounts, as of October 1, 2008, under the provisions of subsection
(a).
``(C) Of the maximum incentive payment determined under
subparagraph (B) with respect to a State--
``(i) one-third shall be transferred to the account of such
State upon a certification under paragraph (4)(B) that the State
law of such State meets the requirements of paragraph (2); and
``(ii) the remainder shall be transferred to the account of
such State upon a certification under paragraph (4)(B) that the
State law of such State meets the requirements of paragraph (3).
``(2) The State law of a State meets the requirements of this
paragraph if such State law--
``(A) uses a base period that includes the most recently
completed calendar quarter before the start of the benefit year for
purposes of determining eligibility for unemployment compensation;
or
``(B) provides that, in the case of an individual who would not
otherwise be eligible for unemployment compensation under the State
law because of the use of a base period that does not include the
most recently completed calendar quarter before the start of the
benefit year, eligibility shall be determined using a base period
that includes such calendar quarter.
``(3) The State law of a State meets the requirements of this
paragraph if such State law includes provisions to carry out at least 2
of the following subparagraphs:
``(A) An individual shall not be denied regular unemployment
compensation under any State law provisions relating to
availability for work, active search for work, or refusal to accept
work, solely because such individual is seeking only part-time work
(as defined by the Secretary of Labor), except that the State law
provisions carrying out this subparagraph may exclude an individual
if a majority of the weeks of work in such individual's base period
do not include part-time work (as so defined).
``(B) An individual shall not be disqualified from regular
unemployment compensation for separating from employment if that
separation is for any compelling family reason. For purposes of
this subparagraph, the term `compelling family reason' means the
following:
``(i) Domestic violence, verified by such reasonable and
confidential documentation as the State law may require, which
causes the individual reasonably to believe that such
individual's continued employment would jeopardize the safety
of the individual or of any member of the individual's
immediate family (as defined by the Secretary of Labor).
``(ii) The illness or disability of a member of the
individual's immediate family (as those terms are defined by
the Secretary of Labor).
``(iii) The need for the individual to accompany such
individual's spouse--
``(I) to a place from which it is impractical for such
individual to commute; and
``(II) due to a change in location of the spouse's
employment.
``(C)(i) Weekly unemployment compensation is payable under this
subparagraph to any individual who is unemployed (as determined
under the State unemployment compensation law), has exhausted all
rights to regular unemployment compensation under the State law,
and is enrolled and making satisfactory progress in a State-
approved training program or in a job training program authorized
under the Workforce Investment Act of 1998, except that such
compensation is not required to be paid to an individual who is
receiving similar stipends or other training allowances for non-
training costs.
``(ii) Each State-approved training program or job training
program referred to in clause (i) shall prepare individuals who
have been separated from a declining occupation, or who have been
involuntarily and indefinitely separated from employment as a
result of a permanent reduction of operations at the individual's
place of employment, for entry into a high-demand occupation.
``(iii) The amount of unemployment compensation payable under
this subparagraph to an individual for a week of unemployment shall
be equal to--
``(I) the individual's average weekly benefit amount
(including dependents' allowances) for the most recent benefit
year, less
``(II) any deductible income, as determined under State
law.
The total amount of unemployment compensation payable under this
subparagraph to any individual shall be equal to at least 26 times
the individual's average weekly benefit amount (including
dependents' allowances) for the most recent benefit year.
``(D) Dependents' allowances are provided, in the case of any
individual who is entitled to receive regular unemployment
compensation and who has any dependents (as defined by State law),
in an amount equal to at least $15 per dependent per week, subject
to any aggregate limitation on such allowances which the State law
may establish (but which aggregate limitation on the total
allowance for dependents paid to an individual may not be less than
$50 for each week of unemployment or 50 percent of the individual's
weekly benefit amount for the benefit year, whichever is less),
except that a State law may provide for a reasonable reduction in
the amount of any such allowance for a week of less than total
unemployment.
``(4)(A) Any State seeking an incentive payment under this
subsection shall submit an application therefor at such time, in such
manner, and complete with such information as the Secretary of Labor
may within 60 days after the date of the enactment of this subsection
prescribe (whether by regulation or otherwise), including information
relating to compliance with the requirements of paragraph (2) or (3),
as well as how the State intends to use the incentive payment to
improve or strengthen the State's unemployment compensation program.
The Secretary of Labor shall, within 30 days after receiving a complete
application, notify the State agency of the State of the Secretary's
findings with respect to the requirements of paragraph (2) or (3) (or
both).
``(B)(i) If the Secretary of Labor finds that the State law
provisions (disregarding any State law provisions which are not then
currently in effect as permanent law or which are subject to
discontinuation) meet the requirements of paragraph (2) or (3), as the
case may be, the Secretary of Labor shall thereupon make a
certification to that effect to the Secretary of the Treasury, together
with a certification as to the amount of the incentive payment to be
transferred to the State account pursuant to that finding. The
Secretary of the Treasury shall make the appropriate transfer within 7
days after receiving such certification.
``(ii) For purposes of clause (i), State law provisions which are
to take effect within 12 months after the date of their certification
under this subparagraph shall be considered to be in effect as of the
date of such certification.
``(C)(i) No certification of compliance with the requirements of
paragraph (2) or (3) may be made with respect to any State whose State
law is not otherwise eligible for certification under section 303 or
approvable under section 3304 of the Federal Unemployment Tax Act.
``(ii) No certification of compliance with the requirements of
paragraph (3) may be made with respect to any State whose State law is
not in compliance with the requirements of paragraph (2).
``(iii) No application under subparagraph (A) may be considered if
submitted before the date of the enactment of this subsection or after
the latest date necessary (as specified by the Secretary of Labor) to
ensure that all incentive payments under this subsection are made
before October 1, 2011.
``(5)(A) Except as provided in subparagraph (B), any amount
transferred to the account of a State under this subsection may be used
by such State only in the payment of cash benefits to individuals with
respect to their unemployment (including for dependents' allowances and
for unemployment compensation under paragraph (3)(C)), exclusive of
expenses of administration.
``(B) A State may, subject to the same conditions as set forth in
subsection (c)(2) (excluding subparagraph (B) thereof, and deeming the
reference to `subsections (a) and (b)' in subparagraph (D) thereof to
include this subsection), use any amount transferred to the account of
such State under this subsection for the administration of its
unemployment compensation law and public employment offices.
``(6) Out of any money in the Federal unemployment account not
otherwise appropriated, the Secretary of the Treasury shall reserve
$7,000,000,000 for incentive payments under this subsection. Any amount
so reserved shall not be taken into account for purposes of any
determination under section 902, 910, or 1203 of the amount in the
Federal unemployment account as of any given time. Any amount so
reserved for which the Secretary of the Treasury has not received a
certification under paragraph (4)(B) by the deadline described in
paragraph (4)(C)(iii) shall, upon the close of fiscal year 2011, become
unrestricted as to use as part of the Federal unemployment account.
``(7) For purposes of this subsection, the terms `benefit year',
`base period', and `week' have the respective meanings given such terms
under section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note).
``Special Transfer in Fiscal Year 2009 for Administration
``(g)(1) In addition to any other amounts, the Secretary of the
Treasury shall transfer from the employment security administration
account to the account of each State in the Unemployment Trust Fund,
within 30 days after the date of the enactment of this subsection, the
amount determined with respect to such State under paragraph (2).
``(2) The amount to be transferred under this subsection to a State
account shall (as determined by the Secretary of Labor and certified by
such Secretary to the Secretary of the Treasury) be equal to the amount
obtained by multiplying $500,000,000 by the same ratio as determined
under subsection (f)(1)(B) with respect to such State.
``(3) Any amount transferred to the account of a State as a result
of the enactment of this subsection may be used by the State agency of
such State only in the payment of expenses incurred by it for--
``(A) the administration of the provisions of its State law
carrying out the purposes of subsection (f)(2) or any subparagraph
of subsection (f)(3);
``(B) improved outreach to individuals who might be eligible
for regular unemployment compensation by virtue of any provisions
of the State law which are described in subparagraph (A);
``(C) the improvement of unemployment benefit and unemployment
tax operations, including responding to increased demand for
unemployment compensation; and
``(D) staff-assisted reemployment services for unemployment
compensation claimants.''.
(b) Regulations.--The Secretary of Labor may prescribe any
regulations, operating instructions, or other guidance necessary to
carry out the amendment made by subsection (a).
SEC. 2004. TEMPORARY ASSISTANCE FOR STATES WITH ADVANCES.
Section 1202(b) of the Social Security Act (42 U.S.C. 1322(b)) is
amended by adding at the end the following new paragraph:
``(10)(A) With respect to the period beginning on the date of
enactment of this paragraph and ending on December 31, 2010--
``(i) any interest payment otherwise due from a State under
this subsection during such period shall be deemed to have been
made by the State; and
``(ii) no interest shall accrue during such period on any
advance or advances made under section 1201 to a State.
``(B) The provisions of subparagraph (A) shall have no effect on
the requirement for interest payments under this subsection after the
period described in such subparagraph or on the accrual of interest
under this subsection after such period.''.
SEC. 2005. FULL FEDERAL FUNDING OF EXTENDED UNEMPLOYMENT COMPENSATION
FOR A LIMITED PERIOD.
(a) In General.--In the case of sharable extended compensation and
sharable regular compensation paid for weeks of unemployment beginning
after the date of the enactment of this section and before January 1,
2010, section 204(a)(1) of the Federal-State Extended Unemployment
Compensation Act of 1970 (26 U.S.C. 3304 note) shall be applied by
substituting ``100 percent of'' for ``one-half of''.
(b) Special Rule.--At the option of a State, for any weeks of
unemployment beginning after the date of the enactment of this section
and before January 1, 2010, an individual's eligibility period (as
described in section 203(c) of the Federal-State Extended Unemployment
Compensation Act of 1970) shall, for purposes of any determination of
eligibility for extended compensation under the State law of such
State, be considered to include any week which begins--
(1) after the date as of which such individual exhausts all
rights to emergency unemployment compensation; and
(2) during an extended benefit period that began on or before
the date described in paragraph (1).
(c) Limited Extension.--In the case of an individual who receives
extended compensation with respect to 1 or more weeks of unemployment
beginning after the date of the enactment of this Act and before
January 1, 2010, the provisions of subsections (a) and (b) shall, at
the option of a State, be applied by substituting ``ending before June
1, 2010'' for ``before January 1, 2010''.
(d) Extension of Temporary Federal Matching for the First Week of
Extended Benefits for States With No Waiting Week.--
(1) In general.--Section 5 of the Unemployment Compensation
Extension Act of 2008 (Public Law 110-449) is amended by striking
``December 8, 2009'' and inserting ``May 30, 2010''.
(2) Effective date.--The amendment made by paragraph (1) shall
take effect as if included in the enactment of the Unemployment
Compensation Extension Act of 2008 (Public Law 110-449).
(e) Definitions.--For purposes of this section--
(1) the terms ``sharable extended compensation'' and ``sharable
regular compensation'' have the respective meanings given such
terms under section 204 of the Federal-State Extended Unemployment
Compensation Act of 1970;
(2) the terms ``extended compensation'', ``State'', ``State
law'', and ``week'' have the respective meanings given such terms
under section 205 of the Federal-State Extended Unemployment
Compensation Act of 1970;
(3) the term ``emergency unemployment compensation'' means
benefits payable to individuals under title IV of the Supplemental
Appropriations Act, 2008 with respect to their unemployment; and
(4) the term ``extended benefit period'' means an extended
benefit period as determined in accordance with applicable
provisions of the Federal-State Extended Unemployment Compensation
Act of 1970.
(f) Regulations.--The Secretary of Labor may prescribe any
operating instructions or regulations necessary to carry out this
section.
SEC. 2006. TEMPORARY INCREASE IN EXTENDED UNEMPLOYMENT BENEFITS UNDER
THE RAILROAD UNEMPLOYMENT INSURANCE ACT.
(a) In General.--Section 2(c)(2) of the Railroad Unemployment
Insurance Act (45 U.S.C. 352(c)(2)) is amended by adding at the end the
following:
``(D) Temporary increase in extended unemployment
benefits.--
``(i) Employees with 10 or more years of service.--
Subject to clause (iii), in the case of an employee who has
10 or more years of service (as so defined), with respect
to extended unemployment benefits--
``(I) subparagraph (A) shall be applied by
substituting `130 days of unemployment' for `65 days of
unemployment'; and
``(II) subparagraph (B) shall be applied by
inserting `(or, in the case of unemployment benefits,
13 consecutive 14-day periods)' after `7 consecutive
14-day periods'.
``(ii) Employees with less than 10 years of service.--
Subject to clause (iii), in the case of an employee who has
less than 10 years of service (as so defined), with respect
to extended unemployment benefits, this paragraph shall
apply to such an employee in the same manner as this
paragraph would apply to an employee described in clause
(i) if such clause had not been enacted.
``(iii) Application.--The provisions of clauses (i) and
(ii) shall apply to an employee who received normal
benefits for days of unemployment under this Act during the
period beginning July 1, 2008, and ending on June 30, 2009,
except that no extended benefit period under this paragraph
shall begin after December 31, 2009. Notwithstanding the
preceding sentence, no benefits shall be payable under this
subparagraph and clauses (i) and (ii) shall no longer be
applicable upon the exhaustion of the funds appropriated
under clause (iv) for payment of benefits under this
subparagraph.
``(iv) Appropriation.--Out of any funds in the Treasury
not otherwise appropriated, there are appropriated
$20,000,000 to cover the cost of additional extended
unemployment benefits provided under this subparagraph, to
remain available until expended.''.
(b) Funding for Administration.--Out of any funds in the Treasury
not otherwise appropriated, there are appropriated to the Railroad
Retirement Board $80,000 to cover the administrative expenses
associated with the payment of additional extended unemployment
benefits under section 2(c)(2)(D) of the Railroad Unemployment
Insurance Act, as added by subsection (a), to remain available until
expended.
Subtitle B--Assistance for Vulnerable Individuals
SEC. 2101. EMERGENCY FUND FOR TANF PROGRAM.
(a) Temporary Fund.--
(1) In general.--Section 403 of the Social Security Act (42
U.S.C. 603) is amended by adding at the end the following:
``(c) Emergency Fund.--
``(1) Establishment.--There is established in the Treasury of
the United States a fund which shall be known as the `Emergency
Contingency Fund for State Temporary Assistance for Needy Families
Programs' (in this subsection referred to as the `Emergency Fund').
``(2) Deposits into fund.--
``(A) In general.--Out of any money in the Treasury of the
United States not otherwise appropriated, there are
appropriated for fiscal year 2009, $5,000,000,000 for payment
to the Emergency Fund.
``(B) Availability and use of funds.--The amounts
appropriated to the Emergency Fund under subparagraph (A) shall
remain available through fiscal year 2010 and shall be used to
make grants to States in each of fiscal years 2009 and 2010 in
accordance with the requirements of paragraph (3).
``(C) Limitation.--In no case may the Secretary make a
grant from the Emergency Fund for a fiscal year after fiscal
year 2010.
``(3) Grants.--
``(A) Grant related to caseload increases.--
``(i) In general.--For each calendar quarter in fiscal
year 2009 or 2010, the Secretary shall make a grant from
the Emergency Fund to each State that--
``(I) requests a grant under this subparagraph for
the quarter; and
``(II) meets the requirement of clause (ii) for the
quarter.
``(ii) Caseload increase requirement.--A State meets
the requirement of this clause for a quarter if the average
monthly assistance caseload of the State for the quarter
exceeds the average monthly assistance caseload of the
State for the corresponding quarter in the emergency fund
base year of the State.
``(iii) Amount of grant.--Subject to paragraph (5), the
amount of the grant to be made to a State under this
subparagraph for a quarter shall be an amount equal to 80
percent of the amount (if any) by which the total
expenditures of the State for basic assistance (as defined
by the Secretary) in the quarter, whether under the State
program funded under this part or as qualified State
expenditures, exceeds the total expenditures of the State
for such assistance for the corresponding quarter in the
emergency fund base year of the State.
``(B) Grant related to increased expenditures for non-
recurrent short term benefits.--
``(i) In general.--For each calendar quarter in fiscal
year 2009 or 2010, the Secretary shall make a grant from
the Emergency Fund to each State that--
``(I) requests a grant under this subparagraph for
the quarter; and
``(II) meets the requirement of clause (ii) for the
quarter.
``(ii) Non-recurrent short term expenditure
requirement.--A State meets the requirement of this clause
for a quarter if the total expenditures of the State for
non-recurrent short term benefits in the quarter, whether
under the State program funded under this part or as
qualified State expenditures, exceeds the total
expenditures of the State for non-recurrent short term
benefits in the corresponding quarter in the emergency fund
base year of the State.
``(iii) Amount of grant.--Subject to paragraph (5), the
amount of the grant to be made to a State under this
subparagraph for a quarter shall be an amount equal to 80
percent of the excess described in clause (ii).
``(C) Grant related to increased expenditures for
subsidized employment.--
``(i) In general.--For each calendar quarter in fiscal
year 2009 or 2010, the Secretary shall make a grant from
the Emergency Fund to each State that--
``(I) requests a grant under this subparagraph for
the quarter; and
``(II) meets the requirement of clause (ii) for the
quarter.
``(ii) Subsidized employment expenditure requirement.--
A State meets the requirement of this clause for a quarter
if the total expenditures of the State for subsidized
employment in the quarter, whether under the State program
funded under this part or as qualified State expenditures,
exceeds the total such expenditures of the State in the
corresponding quarter in the emergency fund base year of
the State.
``(iii) Amount of grant.--Subject to paragraph (5), the
amount of the grant to be made to a State under this
subparagraph for a quarter shall be an amount equal to 80
percent of the excess described in clause (ii).
``(4) Authority to make necessary adjustments to data and
collect needed data.--In determining the size of the caseload of a
State and the expenditures of a State for basic assistance, non-
recurrent short-term benefits, and subsidized employment, during
any period for which the State requests funds under this
subsection, and during the emergency fund base year of the State,
the Secretary may make appropriate adjustments to the data, on a
State-by-State basis, to ensure that the data are comparable with
respect to the groups of families served and the types of aid
provided. The Secretary may develop a mechanism for collecting
expenditure data, including procedures which allow States to make
reasonable estimates, and may set deadlines for making revisions to
the data.
``(5) Limitation.--The total amount payable to a single State
under subsection (b) and this subsection for fiscal years 2009 and
2010 combined shall not exceed 50 percent of the annual State
family assistance grant.
``(6) Limitations on use of funds.--A State to which an amount
is paid under this subsection may use the amount only as authorized
by section 404.
``(7) Timing of implementation.--The Secretary shall implement
this subsection as quickly as reasonably possible, pursuant to
appropriate guidance to States.
``(8) Application to indian tribes.--This subsection shall
apply to an Indian tribe with an approved tribal family assistance
plan under section 412 in the same manner as this subsection
applies to a State.
``(9) Definitions.--In this subsection:
``(A) Average monthly assistance caseload defined.--The
term `average monthly assistance caseload' means, with respect
to a State and a quarter, the number of families receiving
assistance during the quarter under the State program funded
under this part or as qualified State expenditures, subject to
adjustment under paragraph (4).
``(B) Emergency fund base year.--
``(i) In general.--The term `emergency fund base year'
means, with respect to a State and a category described in
clause (ii), whichever of fiscal year 2007 or 2008 is the
fiscal year in which the amount described by the category
with respect to the State is the lesser.
``(ii) Categories described.--The categories described
in this clause are the following:
``(I) The average monthly assistance caseload of
the State.
``(II) The total expenditures of the State for non-
recurrent short term benefits, whether under the State
program funded under this part or as qualified State
expenditures.
``(III) The total expenditures of the State for
subsidized employment, whether under the State program
funded under this part or as qualified State
expenditures.
``(C) Qualified state expenditures.--The term `qualified
State expenditures' has the meaning given the term in section
409(a)(7).''.
(2) Repeal.--Effective October 1, 2010, subsection (c) of
section 403 of the Social Security Act (42 U.S.C. 603) (as added by
paragraph (1)) is repealed, except that paragraph (9) of such
subsection shall remain in effect until October 1, 2011, but only
with respect to section 407(b)(3)(A)(i) of such Act.
(b) Temporary Modification of Caseload Reduction Credit.--Section
407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is amended by
inserting ``(or if the immediately preceding fiscal year is fiscal year
2008, 2009, or 2010, then, at State option, during the emergency fund
base year of the State with respect to the average monthly assistance
caseload of the State (within the meaning of section 403(c)(9)), except
that, if a State elects such option for fiscal year 2008, the emergency
fund base year of the State with respect to such caseload shall be
fiscal year 2007))'' before ``under the State''.
(c) Disregard From Limitation on Total Payments to Territories.--
Section 1108(a)(2) of the Social Security Act (42 U.S.C. 1308(a)(2)) is
amended by inserting ``403(c)(3),'' after ``403(a)(5),''.
(d) Sunset of Other Temporary Provisions.--
(1) Disregard from limitation on total payments to
territories.--Effective October 1, 2010, section 1108(a)(2) of the
Social Security Act (42 U.S.C. 1308(a)(2)) is amended by striking
``403(c)(3),'' (as added by subsection (c)).
(2) Caseload reduction credit.--Effective October 1, 2011,
section 407(b)(3)(A)(i) of such Act (42 U.S.C. 607(b)(3)(A)(i)) is
amended by striking ``(or if the immediately preceding fiscal year
is fiscal year 2008, 2009, or 2010, then, at State option, during
the emergency fund base year of the State with respect to the
average monthly assistance caseload of the State (within the
meaning of section 403(c)(9)), except that, if a State elects such
option for fiscal year 2008, the emergency fund base year of the
State with respect to such caseload shall be fiscal year 2007))''
(as added by subsection (b)).
SEC. 2102. EXTENSION OF TANF SUPPLEMENTAL GRANTS.
(a) Extension Through Fiscal Year 2010.--Section 7101(a) of the
Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat. 135), as
amended by section 301(a) of the Medicare Improvements for Patients and
Providers Act of 2008 (Public Law 110-275), is amended by striking
``fiscal year 2009'' and inserting ``fiscal year 2010''.
(b) Conforming Amendment.--Section 403(a)(3)(H)(ii) of the Social
Security Act (42 U.S.C. 603(a)(3)(H)(ii)) is amended to read as
follows:
``(ii) subparagraph (G) shall be applied as if `fiscal
year 2010' were substituted for `fiscal year 2001'; and''.
SEC. 2103. CLARIFICATION OF AUTHORITY OF STATES TO USE TANF FUNDS
CARRIED OVER FROM PRIOR YEARS TO PROVIDE TANF BENEFITS
AND SERVICES.
Section 404(e) of the Social Security Act (42 U.S.C. 604(e)) is
amended to read as follows:
``(e) Authority to Carry Over Certain Amounts for Benefits or
Services or for Future Contingencies.--A State or tribe may use a grant
made to the State or tribe under this part for any fiscal year to
provide, without fiscal year limitation, any benefit or service that
may be provided under the State or tribal program funded under this
part.''.
SEC. 2104. TEMPORARY RESUMPTION OF PRIOR CHILD SUPPORT LAW.
During the period that begins on October 1, 2008, and ends on
September 30, 2010, section 455(a)(1) of the Social Security Act (42
U.S.C. 655(a)(1)) shall be applied and administered as if the phrase
``from amounts paid to the State under section 458 or'' does not appear
in such section.
Subtitle C--Economic Recovery Payments to Certain Individuals
SEC. 2201. ECONOMIC RECOVERY PAYMENT TO RECIPIENTS OF SOCIAL SECURITY,
SUPPLEMENTAL SECURITY INCOME, RAILROAD RETIREMENT
BENEFITS, AND VETERANS DISABILITY COMPENSATION OR PENSION
BENEFITS.
(a) Authority to Make Payments.--
(1) Eligibility.--
(A) In general.--Subject to paragraph (5)(B), the Secretary
of the Treasury shall disburse a $250 payment to each
individual who, for any month during the 3-month period ending
with the month which ends prior to the month that includes the
date of the enactment of this Act, is entitled to a benefit
payment described in clause (i), (ii), or (iii) of subparagraph
(B) or is eligible for a SSI cash benefit described in
subparagraph (C).
(B) Benefit payment described.--For purposes of
subparagraph (A):
(i) Title ii benefit.--A benefit payment described in
this clause is a monthly insurance benefit payable (without
regard to sections 202(j)(1) and 223(b) of the Social
Security Act (42 U.S.C. 402(j)(1), 423(b)) under--
(I) section 202(a) of such Act (42 U.S.C. 402(a));
(II) section 202(b) of such Act (42 U.S.C. 402(b));
(III) section 202(c) of such Act (42 U.S.C.
402(c));
(IV) section 202(d)(1)(B)(ii) of such Act (42
U.S.C. 402(d)(1)(B)(ii));
(V) section 202(e) of such Act (42 U.S.C. 402(e));
(VI) section 202(f) of such Act (42 U.S.C. 402(f));
(VII) section 202(g) of such Act (42 U.S.C.
402(g));
(VIII) section 202(h) of such Act (42 U.S.C.
402(h));
(IX) section 223(a) of such Act (42 U.S.C. 423(a));
(X) section 227 of such Act (42 U.S.C. 427); or
(XI) section 228 of such Act (42 U.S.C. 428).
(ii) Railroad retirement benefit.--A benefit payment
described in this clause is a monthly annuity or pension
payment payable (without regard to section 5(a)(ii) of the
Railroad Retirement Act of 1974 (45 U.S.C. 231d(a)(ii)))
under--
(I) section 2(a)(1) of such Act (45 U.S.C.
231a(a)(1));
(II) section 2(c) of such Act (45 U.S.C. 231a(c));
(III) section 2(d)(1)(i) of such Act (45 U.S.C.
231a(d)(1)(i));
(IV) section 2(d)(1)(ii) of such Act (45 U.S.C.
231a(d)(1)(ii));
(V) section 2(d)(1)(iii)(C) of such Act to an adult
disabled child (45 U.S.C. 231a(d)(1)(iii)(C));
(VI) section 2(d)(1)(iv) of such Act (45 U.S.C.
231a(d)(1)(iv));
(VII) section 2(d)(1)(v) of such Act (45 U.S.C.
231a(d)(1)(v)); or
(VIII) section 7(b)(2) of such Act (45 U.S.C.
231f(b)(2)) with respect to any of the benefit payments
described in clause (i) of this subparagraph.
(iii) Veterans benefit.--A benefit payment described in
this clause is a compensation or pension payment payable
under--
(I) section 1110, 1117, 1121, 1131, 1141, or 1151
of title 38, United States Code;
(II) section 1310, 1312, 1313, 1315, 1316, or 1318
of title 38, United States Code;
(III) section 1513, 1521, 1533, 1536, 1537, 1541,
1542, or 1562 of title 38, United States Code; or
(IV) section 1805, 1815, or 1821 of title 38,
United States Code,
to a veteran, surviving spouse, child, or parent as
described in paragraph (2), (3), (4)(A)(ii), or (5) of
section 101, title 38, United States Code, who received
that benefit during any month within the 3 month period
ending with the month which ends prior to the month that
includes the date of the enactment of this Act.
(C) Ssi cash benefit described.--A SSI cash benefit
described in this subparagraph is a cash benefit payable under
section 1611 (other than under subsection (e)(1)(B) of such
section) or 1619(a) of the Social Security Act (42 U.S.C. 1382,
1382h).
(2) Requirement.--A payment shall be made under paragraph (1)
only to individuals who reside in 1 of the 50 States, the District
of Columbia, Puerto Rico, Guam, the United States Virgin Islands,
American Samoa, or the Northern Mariana Islands. For purposes of
the preceding sentence, the determination of the individual's
residence shall be based on the current address of record under a
program specified in paragraph (1).
(3) No double payments.--An individual shall be paid only 1
payment under this section, regardless of whether the individual is
entitled to, or eligible for, more than 1 benefit or cash payment
described in paragraph (1).
(4) Limitation.--A payment under this section shall not be
made--
(A) in the case of an individual entitled to a benefit
specified in paragraph (1)(B)(i) or paragraph (1)(B)(ii)(VIII)
if, for the most recent month of such individual's entitlement
in the 3-month period described in paragraph (1), such
individual's benefit under such paragraph was not payable by
reason of subsection (x) or (y) of section 202 the Social
Security Act (42 U.S.C. 402) or section 1129A of such Act (42
U.S.C. 1320a-8a);
(B) in the case of an individual entitled to a benefit
specified in paragraph (1)(B)(iii) if, for the most recent
month of such individual's entitlement in the 3 month period
described in paragraph (1), such individual's benefit under
such paragraph was not payable, or was reduced, by reason of
section 1505, 5313, or 5313B of title 38, United States Code;
(C) in the case of an individual entitled to a benefit
specified in paragraph (1)(C) if, for such most recent month,
such individual's benefit under such paragraph was not payable
by reason of subsection (e)(1)(A) or (e)(4) of section 1611 (42
U.S.C. 1382) or section 1129A of such Act (42 U.S.C. 1320a-8a);
or
(D) in the case of any individual whose date of death
occurs before the date on which the individual is certified
under subsection (b) to receive a payment under this section.
(5) Timing and manner of payments.--
(A) In general.--The Secretary of the Treasury shall
commence disbursing payments under this section at the earliest
practicable date but in no event later than 120 days after the
date of enactment of this Act. The Secretary of the Treasury
may disburse any payment electronically to an individual in
such manner as if such payment was a benefit payment or cash
benefit to such individual under the applicable program
described in subparagraph (B) or (C) of paragraph (1).
(B) Deadline.--No payments shall be disbursed under this
section after December 31, 2010, regardless of any
determinations of entitlement to, or eligibility for, such
payments made after such date.
(b) Identification of Recipients.--The Commissioner of Social
Security, the Railroad Retirement Board, and the Secretary of Veterans
Affairs shall certify the individuals entitled to receive payments
under this section and provide the Secretary of the Treasury with the
information needed to disburse such payments. A certification of an
individual shall be unaffected by any subsequent determination or
redetermination of the individual's entitlement to, or eligibility for,
a benefit specified in subparagraph (B) or (C) of subsection (a)(1).
(c) Treatment of Payments.--
(1) Payment to be disregarded for purposes of all federal and
federally assisted programs.--A payment under subsection (a) shall
not be regarded as income and shall not be regarded as a resource
for the month of receipt and the following 9 months, for purposes
of determining the eligibility of the recipient (or the recipient's
spouse or family) for benefits or assistance, or the amount or
extent of benefits or assistance, under any Federal program or
under any State or local program financed in whole or in part with
Federal funds.
(2) Payment not considered income for purposes of taxation.--A
payment under subsection (a) shall not be considered as gross
income for purposes of the Internal Revenue Code of 1986.
(3) Payments protected from assignment.--The provisions of
sections 207 and 1631(d)(1) of the Social Security Act (42 U.S.C.
407, 1383(d)(1)), section 14(a) of the Railroad Retirement Act of
1974 (45 U.S.C. 231m(a)), and section 5301 of title 38, United
States Code, shall apply to any payment made under subsection (a)
as if such payment was a benefit payment or cash benefit to such
individual under the applicable program described in subparagraph
(B) or (C) of subsection (a)(1).
(4) Payments subject to offset.--Notwithstanding paragraph (3),
for purposes of section 3716 of title 31, United States Code, any
payment made under this section shall not be considered a benefit
payment or cash benefit made under the applicable program described
in subparagraph (B) or (C) of subsection (a)(1) and all amounts
paid shall be subject to offset to collect delinquent debts.
(d) Payment to Representative Payees and Fiduciaries.--
(1) In general.--In any case in which an individual who is
entitled to a payment under subsection (a) and whose benefit
payment or cash benefit described in paragraph (1) of that
subsection is paid to a representative payee or fiduciary, the
payment under subsection (a) shall be made to the individual's
representative payee or fiduciary and the entire payment shall be
used only for the benefit of the individual who is entitled to the
payment.
(2) Applicability.--
(A) Payment on the basis of a title ii or ssi benefit.--
Section 1129(a)(3) of the Social Security Act (42 U.S.C. 1320a-
8(a)(3)) shall apply to any payment made on the basis of an
entitlement to a benefit specified in paragraph (1)(B)(i) or
(1)(C) of subsection (a) in the same manner as such section
applies to a payment under title II or XVI of such Act.
(B) Payment on the basis of a railroad retirement
benefit.--Section 13 of the Railroad Retirement Act (45 U.S.C.
231l) shall apply to any payment made on the basis of an
entitlement to a benefit specified in paragraph (1)(B)(ii) of
subsection (a) in the same manner as such section applies to a
payment under such Act.
(C) Payment on the basis of a veterans benefit.--Sections
5502, 6106, and 6108 of title 38, United States Code, shall
apply to any payment made on the basis of an entitlement to a
benefit specified in paragraph (1)(B)(iii) of subsection (a) in
the same manner as those sections apply to a payment under that
title.
(e) Appropriation.--Out of any sums in the Treasury of the United
States not otherwise appropriated, the following sums are appropriated
for the period of fiscal years 2009 through 2011, to remain available
until expended, to carry out this section:
(1) For the Secretary of the Treasury, $131,000,000 for
administrative costs incurred in carrying out this section, section
2202, section 36A of the Internal Revenue Code of 1986 (as added by
this Act), and other provisions of this Act or the amendments made
by this Act relating to the Internal Revenue Code of 1986.
(2) For the Commissioner of Social Security--
(A) such sums as may be necessary for payments to
individuals certified by the Commissioner of Social Security as
entitled to receive a payment under this section; and
(B) $90,000,000 for the Social Security Administration's
Limitation on Administrative Expenses for costs incurred in
carrying out this section.
(3) For the Railroad Retirement Board--
(A) such sums as may be necessary for payments to
individuals certified by the Railroad Retirement Board as
entitled to receive a payment under this section; and
(B) $1,400,000 to the Railroad Retirement Board's
Limitation on Administration for administrative costs incurred
in carrying out this section.
(4)(A) For the Secretary of Veterans Affairs--
(i) such sums as may be necessary for the Compensation
and Pensions account, for payments to individuals certified
by the Secretary of Veterans Affairs as entitled to receive
a payment under this section; and
(ii) $100,000 for the Information Systems Technology
account and $7,100,000 for the General Operating Expenses
account for administrative costs incurred in carrying out
this section.
(B) The Department of Veterans Affairs Compensation and
Pensions account shall hereinafter be available for payments
authorized under subsection (a)(1)(A) to individuals entitled to a
benefit payment described in subsection (a)(1)(B)(iii).
SEC. 2202. SPECIAL CREDIT FOR CERTAIN GOVERNMENT RETIREES.
(a) In General.--In the case of an eligible individual, there shall
be allowed as a credit against the tax imposed by subtitle A of the
Internal Revenue Code of 1986 for the first taxable year beginning in
2009 an amount equal $250 ($500 in the case of a joint return where
both spouses are eligible individuals).
(b) Eligible Individual.--For purposes of this section--
(1) In general.--The term ``eligible individual'' means any
individual--
(A) who receives during the first taxable year beginning in
2009 any amount as a pension or annuity for service performed
in the employ of the United States or any State, or any
instrumentality thereof, which is not considered employment for
purposes of chapter 21 of the Internal Revenue Code of 1986,
and
(B) who does not receive a payment under section 2201
during such taxable year.
(2) Identification number requirement.--Such term shall not
include any individual who does not include on the return of tax
for the taxable year--
(A) such individual's social security account number, and
(B) in the case of a joint return, the social security
account number of one of the taxpayers on such return.
For purposes of the preceding sentence, the social security account
number shall not include a TIN (as defined in section 7701(a)(41)
of the Internal Revenue Code of 1986) issued by the Internal
Revenue Service. Any omission of a correct social security account
number required under this subparagraph shall be treated as a
mathematical or clerical error for purposes of applying section
6213(g)(2) of such Code to such omission.
(c) Treatment of Credit.--
(1) Refundable credit.--
(A) In general.--The credit allowed by subsection (a) shall
be treated as allowed by subpart C of part IV of subchapter A
of chapter 1 of the Internal Revenue Code of 1986.
(B) Appropriations.--For purposes of section 1324(b)(2) of
title 31, United States Code, the credit allowed by subsection
(a) shall be treated in the same manner a refund from the
credit allowed under section 36A of the Internal Revenue Code
of 1986 (as added by this Act).
(2) Deficiency rules.--For purposes of section 6211(b)(4)(A) of
the Internal Revenue Code of 1986, the credit allowable by
subsection (a) shall be treated in the same manner as the credit
allowable under section 36A of the Internal Revenue Code of 1986
(as added by this Act).
(d) Refunds Disregarded in the Administration of Federal Programs
and Federally Assisted Programs.--Any credit or refund allowed or made
to any individual by reason of this section shall not be taken into
account as income and shall not be taken into account as resources for
the month of receipt and the following 2 months, for purposes of
determining the eligibility of such individual or any other individual
for benefits or assistance, or the amount or extent of benefits or
assistance, under any Federal program or under any State or local
program financed in whole or in part with Federal funds.
TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS
SEC. 3000. TABLE OF CONTENTS.
The table of contents of this title is as follows:
TITLE III--PREMIUM ASSISTANCE FOR COBRA BENEFITS
Sec. 3000. Table of contents.
Sec. 3001. Premium assistance for COBRA benefits.
SEC. 3001. PREMIUM ASSISTANCE FOR COBRA BENEFITS.
(a) Premium Assistance for COBRA Continuation Coverage for
Individuals and Their Families.--
(1) Provision of premium assistance.--
(A) Reduction of premiums payable.--In the case of any
premium for a period of coverage beginning on or after the date
of the enactment of this Act for COBRA continuation coverage
with respect to any assistance eligible individual, such
individual shall be treated for purposes of any COBRA
continuation provision as having paid the amount of such
premium if such individual pays (or a person other than such
individual's employer pays on behalf of such individual) 35
percent of the amount of such premium (as determined without
regard to this subsection).
(B) Plan enrollment option.--
(i) In general.--Notwithstanding the COBRA continuation
provisions, an assistance eligible individual may, not
later than 90 days after the date of notice of the plan
enrollment option described in this subparagraph, elect to
enroll in coverage under a plan offered by the employer
involved, or the employee organization involved (including,
for this purpose, a joint board of trustees of a
multiemployer trust affiliated with one or more
multiemployer plans), that is different than coverage under
the plan in which such individual was enrolled at the time
the qualifying event occurred, and such coverage shall be
treated as COBRA continuation coverage for purposes of the
applicable COBRA continuation coverage provision.
(ii) Requirements.--An assistance eligible individual
may elect to enroll in different coverage as described in
clause (i) only if--
(I) the employer involved has made a determination
that such employer will permit assistance eligible
individuals to enroll in different coverage as provided
for this subparagraph;
(II) the premium for such different coverage does
not exceed the premium for coverage in which the
individual was enrolled at the time the qualifying
event occurred;
(III) the different coverage in which the
individual elects to enroll is coverage that is also
offered to the active employees of the employer at the
time at which such election is made; and
(IV) the different coverage is not--
(aa) coverage that provides only dental,
vision, counseling, or referral services (or a
combination of such services);
(bb) a flexible spending arrangement (as
defined in section 106(c)(2) of the Internal
Revenue Code of 1986); or
(cc) coverage that provides coverage for
services or treatments furnished in an on-site
medical facility maintained by the employer and
that consists primarily of first-aid services,
prevention and wellness care, or similar care (or a
combination of such care).
(C) Premium reimbursement.--For provisions providing the
balance of such premium, see section 6432 of the Internal
Revenue Code of 1986, as added by paragraph (12).
(2) Limitation of period of premium assistance.--
(A) In general.--Paragraph (1)(A) shall not apply with
respect to any assistance eligible individual for months of
coverage beginning on or after the earlier of--
(i) the first date that such individual is eligible for
coverage under any other group health plan (other than
coverage consisting of only dental, vision, counseling, or
referral services (or a combination thereof), coverage
under a flexible spending arrangement (as defined in
section 106(c)(2) of the Internal Revenue Code of 1986), or
coverage of treatment that is furnished in an on-site
medical facility maintained by the employer and that
consists primarily of first-aid services, prevention and
wellness care, or similar care (or a combination thereof))
or is eligible for benefits under title XVIII of the Social
Security Act, or
(ii) the earliest of--
(I) the date which is 9 months after the first day
of the first month that paragraph (1)(A) applies with
respect to such individual,
(II) the date following the expiration of the
maximum period of continuation coverage required under
the applicable COBRA continuation coverage provision,
or
(III) the date following the expiration of the
period of continuation coverage allowed under paragraph
(4)(B)(ii).
(B) Timing of eligibility for additional coverage.--For
purposes of subparagraph (A)(i), an individual shall not be
treated as eligible for coverage under a group health plan
before the first date on which such individual could be covered
under such plan.
(C) Notification requirement.--An assistance eligible
individual shall notify in writing the group health plan with
respect to which paragraph (1)(A) applies if such paragraph
ceases to apply by reason of subparagraph (A)(i). Such notice
shall be provided to the group health plan in such time and
manner as may be specified by the Secretary of Labor.
(3) Assistance eligible individual.--For purposes of this
section, the term ``assistance eligible individual'' means any
qualified beneficiary if--
(A) at any time during the period that begins with
September 1, 2008, and ends with December 31, 2009, such
qualified beneficiary is eligible for COBRA continuation
coverage,
(B) such qualified beneficiary elects such coverage, and
(C) the qualifying event with respect to the COBRA
continuation coverage consists of the involuntary termination
of the covered employee's employment and occurred during such
period.
(4) Extension of election period and effect on coverage.--
(A) In general.--For purposes of applying section 605(a) of
the Employee Retirement Income Security Act of 1974, section
4980B(f)(5)(A) of the Internal Revenue Code of 1986, section
2205(a) of the Public Health Service Act, and section
8905a(c)(2) of title 5, United States Code, in the case of an
individual who does not have an election of COBRA continuation
coverage in effect on the date of the enactment of this Act but
who would be an assistance eligible individual if such election
were so in effect, such individual may elect the COBRA
continuation coverage under the COBRA continuation coverage
provisions containing such sections during the period beginning
on the date of the enactment of this Act and ending 60 days
after the date on which the notification required under
paragraph (7)(C) is provided to such individual.
(B) Commencement of coverage; no reach-back.--Any COBRA
continuation coverage elected by a qualified beneficiary during
an extended election period under subparagraph (A)--
(i) shall commence with the first period of coverage
beginning on or after the date of the enactment of this
Act, and
(ii) shall not extend beyond the period of COBRA
continuation coverage that would have been required under
the applicable COBRA continuation coverage provision if the
coverage had been elected as required under such provision.
(C) Preexisting conditions.--With respect to a qualified
beneficiary who elects COBRA continuation coverage pursuant to
subparagraph (A), the period--
(i) beginning on the date of the qualifying event, and
(ii) ending with the beginning of the period described
in subparagraph (B)(i),
shall be disregarded for purposes of determining the 63-day
periods referred to in section 701(c)(2) of the Employee
Retirement Income Security Act of 1974, section 9801(c)(2) of
the Internal Revenue Code of 1986, and section 2701(c)(2) of
the Public Health Service Act.
(5) Expedited review of denials of premium assistance.--In any
case in which an individual requests treatment as an assistance
eligible individual and is denied such treatment by the group
health plan, the Secretary of Labor (or the Secretary of Health and
Human Services in connection with COBRA continuation coverage which
is provided other than pursuant to part 6 of subtitle B of title I
of the Employee Retirement Income Security Act of 1974), in
consultation with the Secretary of the Treasury, shall provide for
expedited review of such denial. An individual shall be entitled to
such review upon application to such Secretary in such form and
manner as shall be provided by such Secretary. Such Secretary shall
make a determination regarding such individual's eligibility within
15 business days after receipt of such individual's application for
review under this paragraph. Either Secretary's determination upon
review of the denial shall be de novo and shall be the final
determination of such Secretary. A reviewing court shall grant
deference to such Secretary's determination. The provisions of this
paragraph, paragraphs (1) through (4), and paragraph (7) shall be
treated as provisions of title I of the Employee Retirement Income
Security Act of 1974 for purposes of part 5 of subtitle B of such
title.
(6) Disregard of subsidies for purposes of federal and state
programs.--Notwithstanding any other provision of law, any premium
reduction with respect to an assistance eligible individual under
this subsection shall not be considered income or resources in
determining eligibility for, or the amount of assistance or
benefits provided under, any other public benefit provided under
Federal law or the law of any State or political subdivision
thereof.
(7) Notices to individuals.--
(A) General notice.--
(i) In general.--In the case of notices provided under
section 606(a)(4) of the Employee Retirement Income
Security Act of 1974 (29 U.S.C. 1166(4)), section
4980B(f)(6)(D) of the Internal Revenue Code of 1986,
section 2206(4) of the Public Health Service Act (42 U.S.C.
300bb-6(4)), or section 8905a(f)(2)(A) of title 5, United
States Code, with respect to individuals who, during the
period described in paragraph (3)(A), become entitled to
elect COBRA continuation coverage, the requirements of such
sections shall not be treated as met unless such notices
include an additional notification to the recipient of--
(I) the availability of premium reduction with
respect to such coverage under this subsection, and
(II) the option to enroll in different coverage if
the employer permits assistance eligible individuals to
elect enrollment in different coverage (as described in
paragraph (1)(B)).
(ii) Alternative notice.--In the case of COBRA
continuation coverage to which the notice provision under
such sections does not apply, the Secretary of Labor, in
consultation with the Secretary of the Treasury and the
Secretary of Health and Human Services, shall, in
consultation with administrators of the group health plans
(or other entities) that provide or administer the COBRA
continuation coverage involved, provide rules requiring the
provision of such notice.
(iii) Form.--The requirement of the additional
notification under this subparagraph may be met by
amendment of existing notice forms or by inclusion of a
separate document with the notice otherwise required.
(B) Specific requirements.--Each additional notification
under subparagraph (A) shall include--
(i) the forms necessary for establishing eligibility
for premium reduction under this subsection,
(ii) the name, address, and telephone number necessary
to contact the plan administrator and any other person
maintaining relevant information in connection with such
premium reduction,
(iii) a description of the extended election period
provided for in paragraph (4)(A),
(iv) a description of the obligation of the qualified
beneficiary under paragraph (2)(C) to notify the plan
providing continuation coverage of eligibility for
subsequent coverage under another group health plan or
eligibility for benefits under title XVIII of the Social
Security Act and the penalty provided under section 6720C
of the Internal Revenue Code of 1986 for failure to so
notify the plan,
(v) a description, displayed in a prominent manner, of
the qualified beneficiary's right to a reduced premium and
any conditions on entitlement to the reduced premium, and
(vi) a description of the option of the qualified
beneficiary to enroll in different coverage if the employer
permits such beneficiary to elect to enroll in such
different coverage under paragraph (1)(B).
(C) Notice in connection with extended election periods.--
In the case of any assistance eligible individual (or any
individual described in paragraph (4)(A)) who became entitled
to elect COBRA continuation coverage before the date of the
enactment of this Act, the administrator of the group health
plan (or other entity) involved shall provide (within 60 days
after the date of enactment of this Act) for the additional
notification required to be provided under subparagraph (A) and
failure to provide such notice shall be treated as a failure to
meet the notice requirements under the applicable COBRA
continuation provision.
(D) Model notices.--Not later than 30 days after the date
of enactment of this Act--
(i) the Secretary of the Labor, in consultation with
the Secretary of the Treasury and the Secretary of Health
and Human Services, shall prescribe models for the
additional notification required under this paragraph
(other than the additional notification described in clause
(ii)), and
(ii) in the case of any additional notification
provided pursuant to subparagraph (A) under section
8905a(f)(2)(A) of title 5, United States Code, the Office
of Personnel Management shall prescribe a model for such
additional notification.
(8) Regulations.--The Secretary of the Treasury may prescribe
such regulations or other guidance as may be necessary or
appropriate to carry out the provisions of this subsection,
including the prevention of fraud and abuse under this subsection,
except that the Secretary of Labor and the Secretary of Health and
Human Services may prescribe such regulations (including interim
final regulations) or other guidance as may be necessary or
appropriate to carry out the provisions of paragraphs (5), (7), and
(9).
(9) Outreach.--The Secretary of Labor, in consultation with the
Secretary of the Treasury and the Secretary of Health and Human
Services, shall provide outreach consisting of public education and
enrollment assistance relating to premium reduction provided under
this subsection. Such outreach shall target employers, group health
plan administrators, public assistance programs, States, insurers,
and other entities as determined appropriate by such Secretaries.
Such outreach shall include an initial focus on those individuals
electing continuation coverage who are referred to in paragraph
(7)(C). Information on such premium reduction, including
enrollment, shall also be made available on websites of the
Departments of Labor, Treasury, and Health and Human Services.
(10) Definitions.--For purposes of this section--
(A) Administrator.--The term ``administrator'' has the
meaning given such term in section 3(16)(A) of the Employee
Retirement Income Security Act of 1974.
(B) COBRA continuation coverage.--The term ``COBRA
continuation coverage'' means continuation coverage provided
pursuant to part 6 of subtitle B of title I of the Employee
Retirement Income Security Act of 1974 (other than under
section 609), title XXII of the Public Health Service Act,
section 4980B of the Internal Revenue Code of 1986 (other than
subsection (f)(1) of such section insofar as it relates to
pediatric vaccines), or section 8905a of title 5, United States
Code, or under a State program that provides comparable
continuation coverage. Such term does not include coverage
under a health flexible spending arrangement under a cafeteria
plan within the meaning of section 125 of the Internal Revenue
Code of 1986.
(C) COBRA continuation provision.--The term ``COBRA
continuation provision'' means the provisions of law described
in subparagraph (B).
(D) Covered employee.--The term ``covered employee'' has
the meaning given such term in section 607(2) of the Employee
Retirement Income Security Act of 1974.
(E) Qualified beneficiary.--The term ``qualified
beneficiary'' has the meaning given such term in section 607(3)
of the Employee Retirement Income Security Act of 1974.
(F) Group health plan.--The term ``group health plan'' has
the meaning given such term in section 607(1) of the Employee
Retirement Income Security Act of 1974.
(G) State.--The term ``State'' includes the District of
Columbia, the Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, and the Commonwealth of the Northern
Mariana Islands.
(H) Period of coverage.--Any reference in this subsection
to a period of coverage shall be treated as a reference to a
monthly or shorter period of coverage with respect to which
premiums are charged with respect to such coverage.
(11) Reports.--
(A) Interim report.--The Secretary of the Treasury shall
submit an interim report to the Committee on Education and
Labor, the Committee on Ways and Means, and the Committee on
Energy and Commerce of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions and the
Committee on Finance of the Senate regarding the premium
reduction provided under this subsection that includes--
(i) the number of individuals provided such assistance
as of the date of the report; and
(ii) the total amount of expenditures incurred (with
administrative expenditures noted separately) in connection
with such assistance as of the date of the report.
(B) Final report.--As soon as practicable after the last
period of COBRA continuation coverage for which premium
reduction is provided under this section, the Secretary of the
Treasury shall submit a final report to each Committee referred
to in subparagraph (A) that includes--
(i) the number of individuals provided premium
reduction under this section;
(ii) the average dollar amount (monthly and annually)
of premium reductions provided to such individuals; and
(iii) the total amount of expenditures incurred (with
administrative expenditures noted separately) in connection
with premium reduction under this section.
(12) COBRA premium assistance.--
(A) In general.--Subchapter B of chapter 65 of the Internal
Revenue Code of 1986, as amended by this Act, is amended by
adding at the end the following new section:
``SEC. 6432. COBRA PREMIUM ASSISTANCE.
``(a) In General.--The person to whom premiums are payable under
COBRA continuation coverage shall be reimbursed as provided in
subsection (c) for the amount of premiums not paid by assistance
eligible individuals by reason of section 3002(a) of the Health
Insurance Assistance for the Unemployed Act of 2009.
``(b) Person Entitled to Reimbursement.--For purposes of subsection
(a), except as otherwise provided by the Secretary, the person to whom
premiums are payable under COBRA continuation coverage shall be treated
as being--
``(1) in the case of any group health plan which is a
multiemployer plan (as defined in section 3(37) of the Employee
Retirement Income Security Act of 1974), the plan,
``(2) in the case of any group health plan not described in
paragraph (1)--
``(A) which is subject to the COBRA continuation provisions
contained in--
``(i) the Internal Revenue Code of 1986,
``(ii) the Employee Retirement Income Security Act of
1974,
``(iii) the Public Health Service Act, or
``(iv) title 5, United States Code, or
``(B) under which some or all of the coverage is not
provided by insurance,
the employer maintaining the plan, and
``(3) in the case of any group health plan not described in
paragraph (1) or (2), the insurer providing the coverage under the
group health plan.
``(c) Method of Reimbursement.--Except as otherwise provided by the
Secretary--
``(1) Treatment as payment of payroll taxes.--Each person
entitled to reimbursement under subsection (a) (and filing a claim
for such reimbursement at such time and in such manner as the
Secretary may require) shall be treated for purposes of this title
and section 1324(b)(2) of title 31, United States Code, as having
paid to the Secretary, on the date that the assistance eligible
individual's premium payment is received, payroll taxes in an
amount equal to the portion of such reimbursement which relates to
such premium. To the extent that the amount treated as paid under
the preceding sentence exceeds the amount of such person's
liability for such taxes, the Secretary shall credit or refund such
excess in the same manner as if it were an overpayment of such
taxes.
``(2) Overstatements.--Any overstatement of the reimbursement
to which a person is entitled under this section (and any amount
paid by the Secretary as a result of such overstatement) shall be
treated as an underpayment of payroll taxes by such person and may
be assessed and collected by the Secretary in the same manner as
payroll taxes.
``(3) Reimbursement contingent on payment of remaining
premium.--No reimbursement may be made under this section to a
person with respect to any assistance eligible individual until
after the reduced premium required under section 3002(a)(1)(A) of
such Act with respect to such individual has been received.
``(d) Definitions.--For purposes of this section--
``(1) Payroll taxes.--The term `payroll taxes' means--
``(A) amounts required to be deducted and withheld for the
payroll period under section 3402 (relating to wage
withholding),
``(B) amounts required to be deducted for the payroll
period under section 3102 (relating to FICA employee taxes),
and
``(C) amounts of the taxes imposed for the payroll period
under section 3111 (relating to FICA employer taxes).
``(2) Person.--The term `person' includes any governmental
entity.
``(e) Reporting.--Each person entitled to reimbursement under
subsection (a) for any period shall submit such reports (at such time
and in such manner) as the Secretary may require, including--
``(1) an attestation of involuntary termination of employment
for each covered employee on the basis of whose termination
entitlement to reimbursement is claimed under subsection (a),
``(2) a report of the amount of payroll taxes offset under
subsection (a) for the reporting period and the estimated offsets
of such taxes for the subsequent reporting period in connection
with reimbursements under subsection (a), and
``(3) a report containing the TINs of all covered employees,
the amount of subsidy reimbursed with respect to each covered
employee and qualified beneficiaries, and a designation with
respect to each covered employee as to whether the subsidy
reimbursement is for coverage of 1 individual or 2 or more
individuals.
``(f) Regulations.--The Secretary shall issue such regulations or
other guidance as may be necessary or appropriate to carry out this
section, including--
``(1) the requirement to report information or the
establishment of other methods for verifying the correct amounts of
reimbursements under this section, and
``(2) the application of this section to group health plans
that are multiemployer plans (as defined in section 3(37) of the
Employee Retirement Income Security Act of 1974).''.
(B) Social security trust funds held harmless.--In
determining any amount transferred or appropriated to any fund
under the Social Security Act, section 6432 of the Internal
Revenue Code of 1986 shall not be taken into account.
(C) Clerical amendment.--The table of sections for
subchapter B of chapter 65 of the Internal Revenue Code of 1986
is amended by adding at the end the following new item:
``Sec. 6432. COBRA premium assistance.''.
(D) Effective date.--The amendments made by this paragraph
shall apply to premiums to which subsection (a)(1)(A) applies.
(E) Special rule.--
(i) In general.--In the case of an assistance eligible
individual who pays, with respect to the first period of
COBRA continuation coverage to which subsection (a)(1)(A)
applies or the immediately subsequent period, the full
premium amount for such coverage, the person to whom such
payment is payable shall--
(I) make a reimbursement payment to such individual
for the amount of such premium paid in excess of the
amount required to be paid under subsection (a)(1)(A);
or
(II) provide credit to the individual for such
amount in a manner that reduces one or more subsequent
premium payments that the individual is required to pay
under such subsection for the coverage involved.
(ii) Reimbursing employer.--A person to which clause
(i) applies shall be reimbursed as provided for in section
6432 of the Internal Revenue Code of 1986 for any payment
made, or credit provided, to the employee under such
clause.
(iii) Payment or credits.--Unless it is reasonable to
believe that the credit for the excess payment in clause
(i)(II) will be used by the assistance eligible individual
within 180 days of the date on which the person receives
from the individual the payment of the full premium amount,
a person to which clause (i) applies shall make the payment
required under such clause to the individual within 60 days
of such payment of the full premium amount. If, as of any
day within the 180-day period, it is no longer reasonable
to believe that the credit will be used during that period,
payment equal to the remainder of the credit outstanding
shall be made to the individual within 60 days of such day.
(13) Penalty for failure to notify health plan of cessation of
eligibility for premium assistance.--
(A) In general.--Part I of subchapter B of chapter 68 of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new section:
``SEC. 6720C. PENALTY FOR FAILURE TO NOTIFY HEALTH PLAN OF CESSATION OF
ELIGIBILITY FOR COBRA PREMIUM ASSISTANCE.
``(a) In General.--Any person required to notify a group health
plan under section 3002(a)(2)(C)) of the Health Insurance Assistance
for the Unemployed Act of 2009 who fails to make such a notification at
such time and in such manner as the Secretary of Labor may require
shall pay a penalty of 110 percent of the premium reduction provided
under such section after termination of eligibility under such
subsection.
``(b) Reasonable Cause Exception.--No penalty shall be imposed
under subsection (a) with respect to any failure if it is shown that
such failure is due to reasonable cause and not to willful neglect.''.
(B) Clerical amendment.--The table of sections of part I of
subchapter B of chapter 68 of such Code is amended by adding at
the end the following new item:
``Sec. 6720C. Penalty for failure to notify health plan of cessation of
eligibility for COBRA premium assistance.''.
(C) Effective date.--The amendments made by this paragraph
shall apply to failures occurring after the date of the
enactment of this Act.
(14) Coordination with hctc.--
(A) In general.--Subsection (g) of section 35 of the
Internal Revenue Code of 1986 is amended by redesignating
paragraph (9) as paragraph (10) and inserting after paragraph
(8) the following new paragraph:
``(9) COBRA premium assistance.--In the case of an assistance
eligible individual who receives premium reduction for COBRA
continuation coverage under section 3002(a) of the Health Insurance
Assistance for the Unemployed Act of 2009 for any month during the
taxable year, such individual shall not be treated as an eligible
individual, a certified individual, or a qualifying family member
for purposes of this section or section 7527 with respect to such
month.''.
(B) Effective date.--The amendment made by subparagraph (A)
shall apply to taxable years ending after the date of the
enactment of this Act.
(15) Exclusion of cobra premium assistance from gross income.--
(A) In general.--Part III of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 is amended by inserting after
section 139B the following new section:
``SEC. 139C. COBRA PREMIUM ASSISTANCE.
``In the case of an assistance eligible individual (as defined in
section 3002 of the Health Insurance Assistance for the Unemployed Act
of 2009), gross income does not include any premium reduction provided
under subsection (a) of such section.''.
(B) Clerical amendment.--The table of sections for part III
of subchapter B of chapter 1 of such Code is amended by
inserting after the item relating to section 139B the following
new item:
``Sec. 139C. COBRA premium assistance.''.
(C) Effective date.--The amendments made by this paragraph
shall apply to taxable years ending after the date of the
enactment of this Act.
(b) Elimination of Premium Subsidy for High-Income Individuals.--
(1) Recapture of subsidy for high-income individuals.--If--
(A) premium assistance is provided under this section with
respect to any COBRA continuation coverage which covers the
taxpayer, the taxpayer's spouse, or any dependent (within the
meaning of section 152 of the Internal Revenue Code of 1986,
determined without regard to subsections (b)(1), (b)(2), and
(d)(1)(B) thereof) of the taxpayer during any portion of the
taxable year, and
(B) the taxpayer's modified adjusted gross income for such
taxable year exceeds $125,000 ($250,000 in the case of a joint
return),
then the tax imposed by chapter 1 of such Code with respect to the
taxpayer for such taxable year shall be increased by the amount of
such assistance.
(2) Phase-in of recapture.--
(A) In general.--In the case of a taxpayer whose modified
adjusted gross income for the taxable year does not exceed
$145,000 ($290,000 in the case of a joint return), the increase
in the tax imposed under paragraph (1) shall not exceed the
phase-in percentage of such increase (determined without regard
to this paragraph).
(B) Phase-in percentage.--For purposes of this subsection,
the term ``phase-in percentage'' means the ratio (expressed as
a percentage) obtained by dividing--
(i) the excess of described in subparagraph (B) of
paragraph (1), by
(ii) $20,000 ($40,000 in the case of a joint return).
(3) Option for high-income individuals to waive assistance and
avoid recapture.--Notwithstanding subsection (a)(3), an individual
shall not be treated as an assistance eligible individual for
purposes of this section and section 6432 of the Internal Revenue
Code of 1986 if such individual--
(A) makes a permanent election (at such time and in such
form and manner as the Secretary of the Treasury may prescribe)
to waive the right to the premium assistance provided under
this section, and
(B) notifies the entity to whom premiums are reimbursed
under section 6432(a) of such Code of such election.
(4) Modified adjusted gross income.--For purposes of this
subsection, the term ``modified adjusted gross income'' means the
adjusted gross income (as defined in section 62 of the Internal
Revenue Code of 1986) of the taxpayer for the taxable year
increased by any amount excluded from gross income under section
911, 931, or 933 of such Code.
(5) Credits not allowed against tax, etc.--For purposes
determining regular tax liability under section 26(b) of such Code,
the increase in tax under this subsection shall not be treated as a
tax imposed under chapter 1 of such Code.
(6) Regulations.--The Secretary of the Treasury shall issue
such regulations or other guidance as are necessary or appropriate
to carry out this subsection, including requirements that the
entity to whom premiums are reimbursed under section 6432(a) of the
Internal Revenue Code of 1986 report to the Secretary, and to each
assistance eligible individual, the amount of premium assistance
provided under subsection (a) with respect to each such individual.
(7) Effective date.--The provisions of this subsection shall
apply to taxable years ending after the date of the enactment of
this Act.
TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY;
MISCELLANEOUS MEDICARE PROVISIONS
SEC. 4001. TABLE OF CONTENTS OF TITLE.
The table of contents of this title is as follows:
TITLE IV--MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY;
MISCELLANEOUS MEDICARE PROVISIONS
Sec. 4001. Table of contents of title.
Subtitle A--Medicare Incentives
Sec. 4101. Incentives for eligible professionals.
Sec. 4102. Incentives for hospitals.
Sec. 4103. Treatment of payments and savings; implementation funding.
Sec. 4104. Studies and reports on health information technology.
Subtitle B--Medicaid Incentives
Sec. 4201. Medicaid provider HIT adoption and operation payments;
implementation funding.
Subtitle C--Miscellaneous Medicare Provisions
Sec. 4301. Moratoria on certain Medicare regulations.
Sec. 4302. Long-term care hospital technical corrections.
Subtitle A--Medicare Incentives
SEC. 4101. INCENTIVES FOR ELIGIBLE PROFESSIONALS.
(a) Incentive Payments.--Section 1848 of the Social Security Act
(42 U.S.C. 1395w-4) is amended by adding at the end the following new
subsection:
``(o) Incentives for Adoption and Meaningful Use of Certified EHR
Technology.--
``(1) Incentive payments.--
``(A) In general.--
``(i) In general.--Subject to the succeeding
subparagraphs of this paragraph, with respect to covered
professional services furnished by an eligible professional
during a payment year (as defined in subparagraph (E)), if
the eligible professional is a meaningful EHR user (as
determined under paragraph (2)) for the EHR reporting
period with respect to such year, in addition to the amount
otherwise paid under this part, there also shall be paid to
the eligible professional (or to an employer or facility in
the cases described in clause (A) of section 1842(b)(6)),
from the Federal Supplementary Medical Insurance Trust Fund
established under section 1841 an amount equal to 75
percent of the Secretary's estimate (based on claims
submitted not later than 2 months after the end of the
payment year) of the allowed charges under this part for
all such covered professional services furnished by the
eligible professional during such year.
``(ii) No incentive payments with respect to years
after 2016.--No incentive payments may be made under this
subsection with respect to a year after 2016.
``(B) Limitations on amounts of incentive payments.--
``(i) In general.--In no case shall the amount of the
incentive payment provided under this paragraph for an
eligible professional for a payment year exceed the
applicable amount specified under this subparagraph with
respect to such eligible professional and such year.
``(ii) Amount.--Subject to clauses (iii) through (v),
the applicable amount specified in this subparagraph for an
eligible professional is as follows:
``(I) For the first payment year for such
professional, $15,000 (or, if the first payment year
for such eligible professional is 2011 or 2012,
$18,000).
``(II) For the second payment year for such
professional, $12,000.
``(III) For the third payment year for such
professional, $8,000.
``(IV) For the fourth payment year for such
professional, $4,000.
``(V) For the fifth payment year for such
professional, $2,000.
``(VI) For any succeeding payment year for such
professional, $0.
``(iii) Phase down for eligible professionals first
adopting ehr after 2013.--If the first payment year for an
eligible professional is after 2013, then the amount
specified in this subparagraph for a payment year for such
professional is the same as the amount specified in clause
(ii) for such payment year for an eligible professional
whose first payment year is 2013.
``(iv) Increase for certain eligible professionals.--In
the case of an eligible professional who predominantly
furnishes services under this part in an area that is
designated by the Secretary (under section 332(a)(1)(A) of
the Public Health Service Act) as a health professional
shortage area, the amount that would otherwise apply for a
payment year for such professional under subclauses (I)
through (V) of clause (ii) shall be increased by 10
percent. In implementing the preceding sentence, the
Secretary may, as determined appropriate, apply provisions
of subsections (m) and (u) of section 1833 in a similar
manner as such provisions apply under such subsection.
``(v) No incentive payment if first adopting after
2014.--If the first payment year for an eligible
professional is after 2014 then the applicable amount
specified in this subparagraph for such professional for
such year and any subsequent year shall be $0.
``(C) Non-application to hospital-based eligible
professionals.--
``(i) In general.--No incentive payment may be made
under this paragraph in the case of a hospital-based
eligible professional.
``(ii) Hospital-based eligible professional.--For
purposes of clause (i), the term `hospital-based eligible
professional' means, with respect to covered professional
services furnished by an eligible professional during the
EHR reporting period for a payment year, an eligible
professional, such as a pathologist, anesthesiologist, or
emergency physician, who furnishes substantially all of
such services in a hospital setting (whether inpatient or
outpatient) and through the use of the facilities and
equipment, including qualified electronic health records,
of the hospital. The determination of whether an eligible
professional is a hospital-based eligible professional
shall be made on the basis of the site of service (as
defined by the Secretary) and without regard to any
employment or billing arrangement between the eligible
professional and any other provider.
``(D) Payment.--
``(i) Form of payment.--The payment under this
paragraph may be in the form of a single consolidated
payment or in the form of such periodic installments as the
Secretary may specify.
``(ii) Coordination of application of limitation for
professionals in different practices.--In the case of an
eligible professional furnishing covered professional
services in more than one practice (as specified by the
Secretary), the Secretary shall establish rules to
coordinate the incentive payments, including the
application of the limitation on amounts of such incentive
payments under this paragraph, among such practices.
``(iii) Coordination with medicaid.--The Secretary
shall seek, to the maximum extent practicable, to avoid
duplicative requirements from Federal and State governments
to demonstrate meaningful use of certified EHR technology
under this title and title XIX. The Secretary may also
adjust the reporting periods under such title and such
subsections in order to carry out this clause.
``(E) Payment year defined.--
``(i) In general.--For purposes of this subsection, the
term `payment year' means a year beginning with 2011.
``(ii) First, second, etc. payment year.--The term
`first payment year' means, with respect to covered
professional services furnished by an eligible
professional, the first year for which an incentive payment
is made for such services under this subsection. The terms
`second payment year', `third payment year', `fourth
payment year', and `fifth payment year' mean, with respect
to covered professional services furnished by such eligible
professional, each successive year immediately following
the first payment year for such professional.
``(2) Meaningful ehr user.--
``(A) In general.--For purposes of paragraph (1), an
eligible professional shall be treated as a meaningful EHR user
for an EHR reporting period for a payment year (or, for
purposes of subsection (a)(7), for an EHR reporting period
under such subsection for a year) if each of the following
requirements is met:
``(i) Meaningful use of certified ehr technology.--The
eligible professional demonstrates to the satisfaction of
the Secretary, in accordance with subparagraph (C)(i), that
during such period the professional is using certified EHR
technology in a meaningful manner, which shall include the
use of electronic prescribing as determined to be
appropriate by the Secretary.
``(ii) Information exchange.--The eligible professional
demonstrates to the satisfaction of the Secretary, in
accordance with subparagraph (C)(i), that during such
period such certified EHR technology is connected in a
manner that provides, in accordance with law and standards
applicable to the exchange of information, for the
electronic exchange of health information to improve the
quality of health care, such as promoting care
coordination.
``(iii) Reporting on measures using ehr.--Subject to
subparagraph (B)(ii) and using such certified EHR
technology, the eligible professional submits information
for such period, in a form and manner specified by the
Secretary, on such clinical quality measures and such other
measures as selected by the Secretary under subparagraph
(B)(i).
The Secretary may provide for the use of alternative means for
meeting the requirements of clauses (i), (ii), and (iii) in the
case of an eligible professional furnishing covered
professional services in a group practice (as defined by the
Secretary). The Secretary shall seek to improve the use of
electronic health records and health care quality over time by
requiring more stringent measures of meaningful use selected
under this paragraph.
``(B) Reporting on measures.--
``(i) Selection.--The Secretary shall select measures
for purposes of subparagraph (A)(iii) but only consistent
with the following:
``(I) The Secretary shall provide preference to
clinical quality measures that have been endorsed by
the entity with a contract with the Secretary under
section 1890(a).
``(II) Prior to any measure being selected under
this subparagraph, the Secretary shall publish in the
Federal Register such measure and provide for a period
of public comment on such measure.
``(ii) Limitation.--The Secretary may not require the
electronic reporting of information on clinical quality
measures under subparagraph (A)(iii) unless the Secretary
has the capacity to accept the information electronically,
which may be on a pilot basis.
``(iii) Coordination of reporting of information.--In
selecting such measures, and in establishing the form and
manner for reporting measures under subparagraph (A)(iii),
the Secretary shall seek to avoid redundant or duplicative
reporting otherwise required, including reporting under
subsection (k)(2)(C).
``(C) Demonstration of meaningful use of certified ehr
technology and information exchange.--
``(i) In general.--A professional may satisfy the
demonstration requirement of clauses (i) and (ii) of
subparagraph (A) through means specified by the Secretary,
which may include--
``(I) an attestation;
``(II) the submission of claims with appropriate
coding (such as a code indicating that a patient
encounter was documented using certified EHR
technology);
``(III) a survey response;
``(IV) reporting under subparagraph (A)(iii); and
``(V) other means specified by the Secretary.
``(ii) Use of part d data.--Notwithstanding sections
1860D-15(d)(2)(B) and 1860D-15(f)(2), the Secretary may use
data regarding drug claims submitted for purposes of
section 1860D-15 that are necessary for purposes of
subparagraph (A).
``(3) Application.--
``(A) Physician reporting system rules.--Paragraphs (5),
(6), and (8) of subsection (k) shall apply for purposes of this
subsection in the same manner as they apply for purposes of
such subsection.
``(B) Coordination with other payments.--The provisions of
this subsection shall not be taken into account in applying the
provisions of subsection (m) of this section and of section
1833(m) and any payment under such provisions shall not be
taken into account in computing allowable charges under this
subsection.
``(C) Limitations on review.--There shall be no
administrative or judicial review under section 1869, section
1878, or otherwise, of--
``(i) the methodology and standards for determining
payment amounts under this subsection and payment
adjustments under subsection (a)(7)(A), including the
limitation under paragraph (1)(B) and coordination under
clauses (ii) and (iii) of paragraph (1)(D);
``(ii) the methodology and standards for determining a
meaningful EHR user under paragraph (2), including
selection of measures under paragraph (2)(B), specification
of the means of demonstrating meaningful EHR use under
paragraph (2)(C), and the hardship exception under
subsection (a)(7)(B);
``(iii) the methodology and standards for determining a
hospital-based eligible professional under paragraph
(1)(C); and
``(iv) the specification of reporting periods under
paragraph (5) and the selection of the form of payment
under paragraph (1)(D)(i).
``(D) Posting on website.--The Secretary shall post on the
Internet website of the Centers for Medicare & Medicaid
Services, in an easily understandable format, a list of the
names, business addresses, and business phone numbers of the
eligible professionals who are meaningful EHR users and, as
determined appropriate by the Secretary, of group practices
receiving incentive payments under paragraph (1).
``(4) Certified ehr technology defined.--For purposes of this
section, the term `certified EHR technology' means a qualified
electronic health record (as defined in section 3000(13) of the
Public Health Service Act) that is certified pursuant to section
3001(c)(5) of such Act as meeting standards adopted under section
3004 of such Act that are applicable to the type of record involved
(as determined by the Secretary, such as an ambulatory electronic
health record for office-based physicians or an inpatient hospital
electronic health record for hospitals).
``(5) Definitions.--For purposes of this subsection:
``(A) Covered professional services.--The term `covered
professional services' has the meaning given such term in
subsection (k)(3).
``(B) EHR reporting period.--The term `EHR reporting
period' means, with respect to a payment year, any period (or
periods) as specified by the Secretary.
``(C) Eligible professional.--The term `eligible
professional' means a physician, as defined in section
1861(r).''.
(b) Incentive Payment Adjustment.--Section 1848(a) of the Social
Security Act (42 U.S.C. 1395w-4(a)) is amended by adding at the end the
following new paragraph:
``(7) Incentives for meaningful use of certified ehr
technology.--
``(A) Adjustment.--
``(i) In general.--Subject to subparagraphs (B) and
(D), with respect to covered professional services
furnished by an eligible professional during 2015 or any
subsequent payment year, if the eligible professional is
not a meaningful EHR user (as determined under subsection
(o)(2)) for an EHR reporting period for the year, the fee
schedule amount for such services furnished by such
professional during the year (including the fee schedule
amount for purposes of determining a payment based on such
amount) shall be equal to the applicable percent of the fee
schedule amount that would otherwise apply to such services
under this subsection (determined after application of
paragraph (3) but without regard to this paragraph).
``(ii) Applicable percent.--Subject to clause (iii),
for purposes of clause (i), the term `applicable percent'
means--
``(I) for 2015, 99 percent (or, in the case of an
eligible professional who was subject to the
application of the payment adjustment under section
1848(a)(5) for 2014, 98 percent);
``(II) for 2016, 98 percent; and
``(III) for 2017 and each subsequent year, 97
percent.
``(iii) Authority to decrease applicable percentage for
2018 and subsequent years.--For 2018 and each subsequent
year, if the Secretary finds that the proportion of
eligible professionals who are meaningful EHR users (as
determined under subsection (o)(2)) is less than 75
percent, the applicable percent shall be decreased by 1
percentage point from the applicable percent in the
preceding year, but in no case shall the applicable percent
be less than 95 percent.
``(B) Significant hardship exception.--The Secretary may,
on a case-by-case basis, exempt an eligible professional from
the application of the payment adjustment under subparagraph
(A) if the Secretary determines, subject to annual renewal,
that compliance with the requirement for being a meaningful EHR
user would result in a significant hardship, such as in the
case of an eligible professional who practices in a rural area
without sufficient Internet access. In no case may an eligible
professional be granted an exemption under this subparagraph
for more than 5 years.
``(C) Application of physician reporting system rules.--
Paragraphs (5), (6), and (8) of subsection (k) shall apply for
purposes of this paragraph in the same manner as they apply for
purposes of such subsection.
``(D) Non-application to hospital-based eligible
professionals.--No payment adjustment may be made under
subparagraph (A) in the case of hospital-based eligible
professionals (as defined in subsection (o)(1)(C)(ii)).
``(E) Definitions.--For purposes of this paragraph:
``(i) Covered professional services.--The term `covered
professional services' has the meaning given such term in
subsection (k)(3).
``(ii) EHR reporting period.--The term `EHR reporting
period' means, with respect to a year, a period (or
periods) specified by the Secretary.
``(iii) Eligible professional.--The term `eligible
professional' means a physician, as defined in section
1861(r).''.
(c) Application to Certain MA-Affiliated Eligible Professionals.--
Section 1853 of the Social Security Act (42 U.S.C. 1395w-23) is amended
by adding at the end the following new subsection:
``(l) Application of Eligible Professional Incentives for Certain
MA Organizations for Adoption and Meaningful Use of Certified EHR
Technology.--
``(1) In general.--Subject to paragraphs (3) and (4), in the
case of a qualifying MA organization, the provisions of sections
1848(o) and 1848(a)(7) shall apply with respect to eligible
professionals described in paragraph (2) of the organization who
the organization attests under paragraph (6) to be meaningful EHR
users in a similar manner as they apply to eligible professionals
under such sections. Incentive payments under paragraph (3) shall
be made to and payment adjustments under paragraph (4) shall apply
to such qualifying organizations.
``(2) Eligible professional described.--With respect to a
qualifying MA organization, an eligible professional described in
this paragraph is an eligible professional (as defined for purposes
of section 1848(o)) who--
``(A)(i) is employed by the organization; or
``(ii)(I) is employed by, or is a partner of, an entity
that through contract with the organization furnishes at least
80 percent of the entity's Medicare patient care services to
enrollees of such organization; and
``(II) furnishes at least 80 percent of the professional
services of the eligible professional covered under this title
to enrollees of the organization; and
``(B) furnishes, on average, at least 20 hours per week of
patient care services.
``(3) Eligible professional incentive payments.--
``(A) In general.--In applying section 1848(o) under
paragraph (1), instead of the additional payment amount under
section 1848(o)(1)(A) and subject to subparagraph (B), the
Secretary may substitute an amount determined by the Secretary
to the extent feasible and practical to be similar to the
estimated amount in the aggregate that would be payable if
payment for services furnished by such professionals was
payable under part B instead of this part.
``(B) Avoiding duplication of payments.--
``(i) In general.--In the case of an eligible
professional described in paragraph (2)--
``(I) that is eligible for the maximum incentive
payment under section 1848(o)(1)(A) for the same
payment period, the payment incentive shall be made
only under such section and not under this subsection;
and
``(II) that is eligible for less than such maximum
incentive payment for the same payment period, the
payment incentive shall be made only under this
subsection and not under section 1848(o)(1)(A).
``(ii) Methods.--In the case of an eligible
professional described in paragraph (2) who is eligible for
an incentive payment under section 1848(o)(1)(A) but is not
described in clause (i) for the same payment period, the
Secretary shall develop a process--
``(I) to ensure that duplicate payments are not
made with respect to an eligible professional both
under this subsection and under section 1848(o)(1)(A);
and
``(II) to collect data from Medicare Advantage
organizations to ensure against such duplicate
payments.
``(C) Fixed schedule for application of limitation on
incentive payments for all eligible professionals.--In applying
section 1848(o)(1)(B)(ii) under subparagraph (A), in accordance
with rules specified by the Secretary, a qualifying MA
organization shall specify a year (not earlier than 2011) that
shall be treated as the first payment year for all eligible
professionals with respect to such organization.
``(4) Payment adjustment.--
``(A) In general.--In applying section 1848(a)(7) under
paragraph (1), instead of the payment adjustment being an
applicable percent of the fee schedule amount for a year under
such section, subject to subparagraph (D), the payment
adjustment under paragraph (1) shall be equal to the percent
specified in subparagraph (B) for such year of the payment
amount otherwise provided under this section for such year.
``(B) Specified percent.--The percent specified under this
subparagraph for a year is 100 percent minus a number of
percentage points equal to the product of--
``(i) the number of percentage points by which the
applicable percent (under section 1848(a)(7)(A)(ii)) for
the year is less than 100 percent; and
``(ii) the Medicare physician expenditure proportion
specified in subparagraph (C) for the year.
``(C) Medicare physician expenditure proportion.--The
Medicare physician expenditure proportion under this
subparagraph for a year is the Secretary's estimate of the
proportion, of the expenditures under parts A and B that are
not attributable to this part, that are attributable to
expenditures for physicians' services.
``(D) Application of payment adjustment.--In the case that
a qualifying MA organization attests that not all eligible
professionals of the organization are meaningful EHR users with
respect to a year, the Secretary shall apply the payment
adjustment under this paragraph based on the proportion of all
such eligible professionals of the organization that are not
meaningful EHR users for such year.
``(5) Qualifying ma organization defined.--In this subsection
and subsection (m), the term `qualifying MA organization' means a
Medicare Advantage organization that is organized as a health
maintenance organization (as defined in section 2791(b)(3) of the
Public Health Service Act).
``(6) Meaningful ehr user attestation.--For purposes of this
subsection and subsection (m), a qualifying MA organization shall
submit an attestation, in a form and manner specified by the
Secretary which may include the submission of such attestation as
part of submission of the initial bid under section
1854(a)(1)(A)(iv), identifying--
``(A) whether each eligible professional described in
paragraph (2), with respect to such organization is a
meaningful EHR user (as defined in section 1848(o)(2)) for a
year specified by the Secretary; and
``(B) whether each eligible hospital described in
subsection (m)(1), with respect to such organization, is a
meaningful EHR user (as defined in section 1886(n)(3)) for an
applicable period specified by the Secretary.
``(7) Posting on website.--The Secretary shall post on the
Internet website of the Centers for Medicare & Medicaid Services,
in an easily understandable format, a list of the names, business
addresses, and business phone numbers of--
``(A) each qualifying MA organization receiving an
incentive payment under this subsection for eligible
professionals of the organization; and
``(B) the eligible professionals of such organization for
which such incentive payment is based.
``(8) Limitation on review.--There shall be no administrative
or judicial review under section 1869, section 1878, or otherwise,
of--
``(A) the methodology and standards for determining payment
amounts and payment adjustments under this subsection,
including avoiding duplication of payments under paragraph
(3)(B) and the specification of rules for the fixed schedule
for application of limitation on incentive payments for all
eligible professionals under paragraph (3)(C);
``(B) the methodology and standards for determining
eligible professionals under paragraph (2); and
``(C) the methodology and standards for determining a
meaningful EHR user under section 1848(o)(2), including
specification of the means of demonstrating meaningful EHR use
under section 1848(o)(3)(C) and selection of measures under
section 1848(o)(3)(B).''.
(d) Study and Report Relating to MA Organizations.--
(1) Study.--The Secretary of Health and Human Services shall
conduct a study on the extent to which and manner in which payment
incentives and adjustments (such as under sections 1848(o) and
1848(a)(7) of the Social Security Act) could be made available to
professionals, as defined in 1861(r), who are not eligible for HIT
incentive payments under section 1848(o) and receive payments for
Medicare patient services nearly-exclusively through contractual
arrangements with one or more Medicare Advantage organizations, or
an intermediary organization or organizations with contracts with
Medicare Advantage organizations. Such study shall assess
approaches for measuring meaningful use of qualified EHR technology
among such professionals and mechanisms for delivering incentives
and adjustments to those professionals, including through incentive
payments and adjustments through Medicare Advantage organizations
or intermediary organizations.
(2) Report.--Not later than 120 days after the date of the
enactment of this Act, the Secretary of Health and Human Services
shall submit to Congress a report on the findings and the
conclusions of the study conducted under paragraph (1), together
with recommendations for such legislation and administrative action
as the Secretary determines appropriate.
(e) Conforming Amendments.--Section 1853 of the Social Security Act
(42 U.S.C. 1395w-23) is amended--
(1) in subsection (a)(1)(A), by striking ``and (i)'' and
inserting ``(i), and (l)'';
(2) in subsection (c)--
(A) in paragraph (1)(D)(i), by striking ``section 1886(h)''
and inserting ``sections 1848(o) and 1886(h)''; and
(B) in paragraph (6)(A), by inserting after ``under part
B,'' the following: ``excluding expenditures attributable to
subsections (a)(7) and (o) of section 1848,''; and
(3) in subsection (f), by inserting ``and for payments under
subsection (l)'' after ``with the organization''.
(f) Conforming Amendments to E-Prescribing.--
(1) Section 1848(a)(5)(A) of the Social Security Act (42 U.S.C.
1395w-4(a)(5)(A)) is amended--
(A) in clause (i), by striking ``or any subsequent year''
and inserting ``, 2013 or 2014''; and
(B) in clause (ii), by striking ``and each subsequent
year''.
(2) Section 1848(m)(2) of such Act (42 U.S.C. 1395w-4(m)(2)) is
amended--
(A) in subparagraph (A), by striking ``For 2009'' and
inserting ``Subject to subparagraph (D), for 2009''; and
(B) by adding at the end the following new subparagraph:
``(D) Limitation with respect to ehr incentive payments.--
The provisions of this paragraph shall not apply to an eligible
professional (or, in the case of a group practice under
paragraph (3)(C), to the group practice) if, for the EHR
reporting period the eligible professional (or group practice)
receives an incentive payment under subsection (o)(1)(A) with
respect to a certified EHR technology (as defined in subsection
(o)(4)) that has the capability of electronic prescribing.''.
SEC. 4102. INCENTIVES FOR HOSPITALS.
(a) Incentive Payment.--
(1) In general.--Section 1886 of the Social Security Act (42
U.S.C. 1395ww) is amended by adding at the end the following new
subsection:
``(n) Incentives for Adoption and Meaningful Use of Certified EHR
Technology.--
``(1) In general.--Subject to the succeeding provisions of this
subsection, with respect to inpatient hospital services furnished
by an eligible hospital during a payment year (as defined in
paragraph (2)(G)), if the eligible hospital is a meaningful EHR
user (as determined under paragraph (3)) for the EHR reporting
period with respect to such year, in addition to the amount
otherwise paid under this section, there also shall be paid to the
eligible hospital, from the Federal Hospital Insurance Trust Fund
established under section 1817, an amount equal to the applicable
amount specified in paragraph (2)(A) for the hospital for such
payment year.
``(2) Payment amount.--
``(A) In general.--Subject to the succeeding subparagraphs
of this paragraph, the applicable amount specified in this
subparagraph for an eligible hospital for a payment year is
equal to the product of the following:
``(i) Initial amount.--The sum of--
``(I) the base amount specified in subparagraph
(B); plus
``(II) the discharge related amount specified in
subparagraph (C) for a 12-month period selected by the
Secretary with respect to such payment year.
``(ii) Medicare share.--The Medicare share as specified
in subparagraph (D) for the eligible hospital for a period
selected by the Secretary with respect to such payment
year.
``(iii) Transition factor.--The transition factor
specified in subparagraph (E) for the eligible hospital for
the payment year.
``(B) Base amount.--The base amount specified in this
subparagraph is $2,000,000.
``(C) Discharge related amount.--The discharge related
amount specified in this subparagraph for a 12-month period
selected by the Secretary shall be determined as the sum of the
amount, estimated based upon total discharges for the eligible
hospital (regardless of any source of payment) for the period,
for each discharge up to the 23,000th discharge as follows:
``(i) For the first through 1,149th discharge, $0.
``(ii) For the 1,150th through the 23,000th discharge,
$200.
``(iii) For any discharge greater than the 23,000th,
$0.
``(D) Medicare share.--The Medicare share specified under
this subparagraph for an eligible hospital for a period
selected by the Secretary for a payment year is equal to the
fraction--
``(i) the numerator of which is the sum (for such
period and with respect to the eligible hospital) of--
``(I) the estimated number of inpatient-bed-days
(as established by the Secretary) which are
attributable to individuals with respect to whom
payment may be made under part A; and
``(II) the estimated number of inpatient-bed-days
(as so established) which are attributable to
individuals who are enrolled with a Medicare Advantage
organization under part C; and
``(ii) the denominator of which is the product of--
``(I) the estimated total number of inpatient-bed-
days with respect to the eligible hospital during such
period; and
``(II) the estimated total amount of the eligible
hospital's charges during such period, not including
any charges that are attributable to charity care (as
such term is used for purposes of hospital cost
reporting under this title), divided by the estimated
total amount of the hospital's charges during such
period.
Insofar as the Secretary determines that data are not available
on charity care necessary to calculate the portion of the
formula specified in clause (ii)(II), the Secretary shall use
data on uncompensated care and may adjust such data so as to be
an appropriate proxy for charity care including a downward
adjustment to eliminate bad debt data from uncompensated care
data. In the absence of the data necessary, with respect to a
hospital, for the Secretary to compute the amount described in
clause (ii)(II), the amount under such clause shall be deemed
to be 1. In the absence of data, with respect to a hospital,
necessary to compute the amount described in clause (i)(II),
the amount under such clause shall be deemed to be 0.
``(E) Transition factor specified.--
``(i) In general.--Subject to clause (ii), the
transition factor specified in this subparagraph for an
eligible hospital for a payment year is as follows:
``(I) For the first payment year for such hospital,
1.
``(II) For the second payment year for such
hospital, \3/4\.
``(III) For the third payment year for such
hospital, \1/2\.
``(IV) For the fourth payment year for such
hospital, \1/4\.
``(V) For any succeeding payment year for such
hospital, 0.
``(ii) Phase down for eligible hospitals first adopting
ehr after 2013.--If the first payment year for an eligible
hospital is after 2013, then the transition factor
specified in this subparagraph for a payment year for such
hospital is the same as the amount specified in clause (i)
for such payment year for an eligible hospital for which
the first payment year is 2013. If the first payment year
for an eligible hospital is after 2015 then the transition
factor specified in this subparagraph for such hospital and
for such year and any subsequent year shall be 0.
``(F) Form of payment.--The payment under this subsection
for a payment year may be in the form of a single consolidated
payment or in the form of such periodic installments as the
Secretary may specify.
``(G) Payment year defined.--
``(i) In general.--For purposes of this subsection, the
term `payment year' means a fiscal year beginning with
fiscal year 2011.
``(ii) First, second, etc. payment year.--The term
`first payment year' means, with respect to inpatient
hospital services furnished by an eligible hospital, the
first fiscal year for which an incentive payment is made
for such services under this subsection. The terms `second
payment year', `third payment year', and `fourth payment
year' mean, with respect to an eligible hospital, each
successive year immediately following the first payment
year for that hospital.
``(3) Meaningful ehr user.--
``(A) In general.--For purposes of paragraph (1), an
eligible hospital shall be treated as a meaningful EHR user for
an EHR reporting period for a payment year (or, for purposes of
subsection (b)(3)(B)(ix), for an EHR reporting period under
such subsection for a fiscal year) if each of the following
requirements are met:
``(i) Meaningful use of certified ehr technology.--The
eligible hospital demonstrates to the satisfaction of the
Secretary, in accordance with subparagraph (C)(i), that
during such period the hospital is using certified EHR
technology in a meaningful manner.
``(ii) Information exchange.--The eligible hospital
demonstrates to the satisfaction of the Secretary, in
accordance with subparagraph (C)(i), that during such
period such certified EHR technology is connected in a
manner that provides, in accordance with law and standards
applicable to the exchange of information, for the
electronic exchange of health information to improve the
quality of health care, such as promoting care
coordination.
``(iii) Reporting on measures using ehr.--Subject to
subparagraph (B)(ii) and using such certified EHR
technology, the eligible hospital submits information for
such period, in a form and manner specified by the
Secretary, on such clinical quality measures and such other
measures as selected by the Secretary under subparagraph
(B)(i).
The Secretary shall seek to improve the use of electronic
health records and health care quality over time by requiring
more stringent measures of meaningful use selected under this
paragraph.
``(B) Reporting on measures.--
``(i) Selection.--The Secretary shall select measures
for purposes of subparagraph (A)(iii) but only consistent
with the following:
``(I) The Secretary shall provide preference to
clinical quality measures that have been selected for
purposes of applying subsection (b)(3)(B)(viii) or that
have been endorsed by the entity with a contract with
the Secretary under section 1890(a).
``(II) Prior to any measure (other than a clinical
quality measure that has been selected for purposes of
applying subsection (b)(3)(B)(viii)) being selected
under this subparagraph, the Secretary shall publish in
the Federal Register such measure and provide for a
period of public comment on such measure.
``(ii) Limitations.--The Secretary may not require the
electronic reporting of information on clinical quality
measures under subparagraph (A)(iii) unless the Secretary
has the capacity to accept the information electronically,
which may be on a pilot basis.
``(iii) Coordination of reporting of information.--In
selecting such measures, and in establishing the form and
manner for reporting measures under subparagraph (A)(iii),
the Secretary shall seek to avoid redundant or duplicative
reporting with reporting otherwise required, including
reporting under subsection (b)(3)(B)(viii).
``(C) Demonstration of meaningful use of certified ehr
technology and information exchange.--
``(i) In general.--An eligible hospital may satisfy the
demonstration requirement of clauses (i) and (ii) of
subparagraph (A) through means specified by the Secretary,
which may include--
``(I) an attestation;
``(II) the submission of claims with appropriate
coding (such as a code indicating that inpatient care
was documented using certified EHR technology);
``(III) a survey response;
``(IV) reporting under subparagraph (A)(iii); and
``(V) other means specified by the Secretary.
``(ii) Use of part d data.--Notwithstanding sections
1860D-15(d)(2)(B) and 1860D-15(f)(2), the Secretary may use
data regarding drug claims submitted for purposes of
section 1860D-15 that are necessary for purposes of
subparagraph (A).
``(4) Application.--
``(A) Limitations on review.--There shall be no
administrative or judicial review under section 1869, section
1878, or otherwise, of--
``(i) the methodology and standards for determining
payment amounts under this subsection and payment
adjustments under subsection (b)(3)(B)(ix), including
selection of periods under paragraph (2) for determining,
and making estimates or using proxies of, discharges under
paragraph (2)(C) and inpatient-bed-days, hospital charges,
charity charges, and Medicare share under paragraph (2)(D);
``(ii) the methodology and standards for determining a
meaningful EHR user under paragraph (3), including
selection of measures under paragraph (3)(B), specification
of the means of demonstrating meaningful EHR use under
paragraph (3)(C), and the hardship exception under
subsection (b)(3)(B)(ix)(II); and
``(iii) the specification of EHR reporting periods
under paragraph (6)(B) and the selection of the form of
payment under paragraph (2)(F).
``(B) Posting on website.--The Secretary shall post on the
Internet website of the Centers for Medicare & Medicaid
Services, in an easily understandable format, a list of the
names of the eligible hospitals that are meaningful EHR users
under this subsection or subsection (b)(3)(B)(ix) (and a list
of the names of critical access hospitals to which paragraph
(3) or (4) of section 1814(l) applies), and other relevant data
as determined appropriate by the Secretary. The Secretary shall
ensure that an eligible hospital (or critical access hospital)
has the opportunity to review the other relevant data that are
to be made public with respect to the hospital (or critical
access hospital) prior to such data being made public.
``(5) Certified ehr technology defined.--The term `certified
EHR technology' has the meaning given such term in section
1848(o)(4).
``(6) Definitions.--For purposes of this subsection:
``(A) EHR reporting period.--The term `EHR reporting
period' means, with respect to a payment year, any period (or
periods) as specified by the Secretary.
``(B) Eligible hospital.--The term `eligible hospital'
means a subsection (d) hospital.''.
(2) Critical access hospitals.--Section 1814(l) of the Social
Security Act (42 U.S.C. 1395f(l)) is amended--
(A) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``the subsequent paragraphs of this subsection''; and
(B) by adding at the end the following new paragraph:
``(3)(A) The following rules shall apply in determining payment and
reasonable costs under paragraph (1) for costs described in
subparagraph (C) for a critical access hospital that would be a
meaningful EHR user (as would be determined under paragraph (3) of
section 1886(n)) for an EHR reporting period for a cost reporting
period beginning during a payment year if such critical access hospital
was treated as an eligible hospital under such section:
``(i) The Secretary shall compute reasonable costs by expensing
such costs in a single payment year and not depreciating such costs
over a period of years (and shall include as costs with respect to
cost reporting periods beginning during a payment year costs from
previous cost reporting periods to the extent they have not been
fully depreciated as of the period involved).
``(ii) There shall be substituted for the Medicare share that
would otherwise be applied under paragraph (1) a percent (not to
exceed 100 percent) equal to the sum of--
``(I) the Medicare share (as would be specified under
paragraph (2)(D) of section 1886(n)) for such critical access
hospital if such critical access hospital was treated as an
eligible hospital under such section; and
``(II) 20 percentage points.
``(B) The payment under this paragraph with respect to a critical
access hospital shall be paid through a prompt interim payment (subject
to reconciliation) after submission and review of such information (as
specified by the Secretary) necessary to make such payment, including
information necessary to apply this paragraph. In no case may payment
under this paragraph be made with respect to a cost reporting period
beginning during a payment year after 2015 and in no case may a
critical access hospital receive payment under this paragraph with
respect to more than 4 consecutive payment years.
``(C) The costs described in this subparagraph are costs for the
purchase of certified EHR technology to which purchase depreciation
(excluding interest) would apply if payment was made under paragraph
(1) and not under this paragraph.
``(D) For purposes of this paragraph, paragraph (4), and paragraph
(5), the terms `certified EHR technology', `eligible hospital', `EHR
reporting period', and `payment year' have the meanings given such
terms in sections 1886(n).''.
(b) Incentive Market Basket Adjustment.--
(1) In general.--Section 1886(b)(3)(B) of the Social Security
Act (42 U.S.C. 1395ww(b)(3)(B)) is amended--
(A) in clause (viii)(I), by inserting ``(or, beginning with
fiscal year 2015, by one-quarter)'' after ``2.0 percentage
points''; and
(B) by adding at the end the following new clause:
``(ix)(I) For purposes of clause (i) for fiscal year 2015 and each
subsequent fiscal year, in the case of an eligible hospital (as defined
in subsection (n)(6)(A)) that is not a meaningful EHR user (as defined
in subsection (n)(3)) for an EHR reporting period for such fiscal year,
three-quarters of the applicable percentage increase otherwise
applicable under clause (i) for such fiscal year shall be reduced by
33\1/3\ percent for fiscal year 2015, 66\2/3\ percent for fiscal year
2016, and 100 percent for fiscal year 2017 and each subsequent fiscal
year. Such reduction shall apply only with respect to the fiscal year
involved and the Secretary shall not take into account such reduction
in computing the applicable percentage increase under clause (i) for a
subsequent fiscal year.
``(II) The Secretary may, on a case-by-case basis, exempt a
subsection (d) hospital from the application of subclause (I) with
respect to a fiscal year if the Secretary determines, subject to annual
renewal, that requiring such hospital to be a meaningful EHR user
during such fiscal year would result in a significant hardship, such as
in the case of a hospital in a rural area without sufficient Internet
access. In no case may a hospital be granted an exemption under this
subclause for more than 5 years.
``(III) For fiscal year 2015 and each subsequent fiscal year, a
State in which hospitals are paid for services under section 1814(b)(3)
shall adjust the payments to each subsection (d) hospital in the State
that is not a meaningful EHR user (as defined in subsection (n)(3)) in
a manner that is designed to result in an aggregate reduction in
payments to hospitals in the State that is equivalent to the aggregate
reduction that would have occurred if payments had been reduced to each
subsection (d) hospital in the State in a manner comparable to the
reduction under the previous provisions of this clause. The State shall
report to the Secretary the methodology it will use to make the payment
adjustment under the previous sentence.
``(IV) For purposes of this clause, the term `EHR reporting period'
means, with respect to a fiscal year, any period (or periods) as
specified by the Secretary.''.
(2) Critical access hospitals.--Section 1814(l) of the Social
Security Act (42 U.S.C. 1395f(l)), as amended by subsection (a)(2),
is further amended by adding at the end the following new
paragraphs:
``(4)(A) Subject to subparagraph (C), for cost reporting periods
beginning in fiscal year 2015 or a subsequent fiscal year, in the case
of a critical access hospital that is not a meaningful EHR user (as
would be determined under paragraph (3) of section 1886(n) if such
critical access hospital was treated as an eligible hospital under such
section) for an EHR reporting period with respect to such fiscal year,
paragraph (1) shall be applied by substituting the applicable percent
under subparagraph (B) for the percent described in such paragraph (1).
``(B) The percent described in this subparagraph is--
``(i) for fiscal year 2015, 100.66 percent;
``(ii) for fiscal year 2016, 100.33 percent; and
``(iii) for fiscal year 2017 and each subsequent fiscal year,
100 percent.
``(C) The provisions of subclause (II) of section 1886(b)(3)(B)(ix)
shall apply with respect to subparagraph (A) for a critical access
hospital with respect to a cost reporting period beginning in a fiscal
year in the same manner as such subclause applies with respect to
subclause (I) of such section for a subsection (d) hospital with
respect to such fiscal year.
``(5) There shall be no administrative or judicial review under
section 1869, section 1878, or otherwise, of--
``(A) the methodology and standards for determining the amount
of payment and reasonable cost under paragraph (3) and payment
adjustments under paragraph (4), including selection of periods
under section 1886(n)(2) for determining, and making estimates or
using proxies of, inpatient-bed-days, hospital charges, charity
charges, and Medicare share under subparagraph (D) of section
1886(n)(2);
``(B) the methodology and standards for determining a
meaningful EHR user under section 1886(n)(3) as would apply if the
hospital was treated as an eligible hospital under section 1886(n),
and the hardship exception under paragraph (4)(C);
``(C) the specification of EHR reporting periods under section
1886(n)(6)(B) as applied under paragraphs (3) and (4); and
``(D) the identification of costs for purposes of paragraph
(3)(C).''.
(c) Application to Certain MA-Affiliated Eligible Hospitals.--
Section 1853 of the Social Security Act (42 U.S.C. 1395w-23), as
amended by section 4101(c), is further amended by adding at the end the
following new subsection:
``(m) Application of Eligible Hospital Incentives for Certain MA
Organizations for Adoption and Meaningful Use of Certified EHR
Technology.--
``(1) Application.--Subject to paragraphs (3) and (4), in the
case of a qualifying MA organization, the provisions of sections
1886(n) and 1886(b)(3)(B)(ix) shall apply with respect to eligible
hospitals described in paragraph (2) of the organization which the
organization attests under subsection (l)(6) to be meaningful EHR
users in a similar manner as they apply to eligible hospitals under
such sections. Incentive payments under paragraph (3) shall be made
to and payment adjustments under paragraph (4) shall apply to such
qualifying organizations.
``(2) Eligible hospital described.--With respect to a
qualifying MA organization, an eligible hospital described in this
paragraph is an eligible hospital (as defined in section
1886(n)(6)(A)) that is under common corporate governance with such
organization and serves individuals enrolled under an MA plan
offered by such organization.
``(3) Eligible hospital incentive payments.--
``(A) In general.--In applying section 1886(n)(2) under
paragraph (1), instead of the additional payment amount under
section 1886(n)(2), there shall be substituted an amount
determined by the Secretary to be similar to the estimated
amount in the aggregate that would be payable if payment for
services furnished by such hospitals was payable under part A
instead of this part. In implementing the previous sentence,
the Secretary--
``(i) shall, insofar as data to determine the discharge
related amount under section 1886(n)(2)(C) for an eligible
hospital are not available to the Secretary, use such
alternative data and methodology to estimate such discharge
related amount as the Secretary determines appropriate; and
``(ii) shall, insofar as data to determine the medicare
share described in section 1886(n)(2)(D) for an eligible
hospital are not available to the Secretary, use such
alternative data and methodology to estimate such share,
which data and methodology may include use of the
inpatient-bed-days (or discharges) with respect to an
eligible hospital during the appropriate period which are
attributable to both individuals for whom payment may be
made under part A or individuals enrolled in an MA plan
under a Medicare Advantage organization under this part as
a proportion of the estimated total number of patient-bed-
days (or discharges) with respect to such hospital during
such period.
``(B) Avoiding duplication of payments.--
``(i) In general.--In the case of a hospital that for a
payment year is an eligible hospital described in paragraph
(2) and for which at least one-third of their discharges
(or bed-days) of Medicare patients for the year are covered
under part A, payment for the payment year shall be made
only under section 1886(n) and not under this subsection.
``(ii) Methods.--In the case of a hospital that is an
eligible hospital described in paragraph (2) and also is
eligible for an incentive payment under section 1886(n) but
is not described in clause (i) for the same payment period,
the Secretary shall develop a process--
``(I) to ensure that duplicate payments are not
made with respect to an eligible hospital both under
this subsection and under section 1886(n); and
``(II) to collect data from Medicare Advantage
organizations to ensure against such duplicate
payments.
``(4) Payment adjustment.--
``(A) Subject to paragraph (3), in the case of a qualifying
MA organization (as defined in section 1853(l)(5)), if,
according to the attestation of the organization submitted
under subsection (l)(6) for an applicable period, one or more
eligible hospitals (as defined in section 1886(n)(6)(A)) that
are under common corporate governance with such organization
and that serve individuals enrolled under a plan offered by
such organization are not meaningful EHR users (as defined in
section 1886(n)(3)) with respect to a period, the payment
amount payable under this section for such organization for
such period shall be the percent specified in subparagraph (B)
for such period of the payment amount otherwise provided under
this section for such period.
``(B) Specified percent.--The percent specified under this
subparagraph for a year is 100 percent minus a number of
percentage points equal to the product of--
``(i) the number of the percentage point reduction
effected under section 1886(b)(3)(B)(ix)(I) for the period;
and
``(ii) the Medicare hospital expenditure proportion
specified in subparagraph (C) for the year.
``(C) Medicare hospital expenditure proportion.--The
Medicare hospital expenditure proportion under this
subparagraph for a year is the Secretary's estimate of the
proportion, of the expenditures under parts A and B that are
not attributable to this part, that are attributable to
expenditures for inpatient hospital services.
``(D) Application of payment adjustment.--In the case that
a qualifying MA organization attests that not all eligible
hospitals are meaningful EHR users with respect to an
applicable period, the Secretary shall apply the payment
adjustment under this paragraph based on a methodology
specified by the Secretary, taking into account the proportion
of such eligible hospitals, or discharges from such hospitals,
that are not meaningful EHR users for such period.
``(5) Posting on website.--The Secretary shall post on the
Internet website of the Centers for Medicare & Medicaid Services,
in an easily understandable format--
``(A) a list of the names, business addresses, and business
phone numbers of each qualifying MA organization receiving an
incentive payment under this subsection for eligible hospitals
described in paragraph (2); and
``(B) a list of the names of the eligible hospitals for
which such incentive payment is based.
``(6) Limitations on review.--There shall be no administrative
or judicial review under section 1869, section 1878, or otherwise,
of--
``(A) the methodology and standards for determining payment
amounts and payment adjustments under this subsection,
including avoiding duplication of payments under paragraph
(3)(B);
``(B) the methodology and standards for determining
eligible hospitals under paragraph (2); and
``(C) the methodology and standards for determining a
meaningful EHR user under section 1886(n)(3), including
specification of the means of demonstrating meaningful EHR use
under subparagraph (C) of such section and selection of
measures under subparagraph (B) of such section.''.
(d) Conforming Amendments.--
(1) Section 1814(b) of the Social Security Act (42 U.S.C.
1395f(b)) is amended--
(A) in paragraph (3), in the matter preceding subparagraph
(A), by inserting ``, subject to section
1886(d)(3)(B)(ix)(III),'' after ``then''; and
(B) by adding at the end the following: ``For purposes of
applying paragraph (3), there shall be taken into account
incentive payments, and payment adjustments under subsection
(b)(3)(B)(ix) or (n) of section 1886.''.
(2) Section 1851(i)(1) of the Social Security Act (42 U.S.C.
1395w-21(i)(1)) is amended by striking ``and 1886(h)(3)(D)'' and
inserting ``1886(h)(3)(D), and 1853(m)''.
(3) Section 1853 of the Social Security Act (42 U.S.C. 1395w-
23), as amended by section 4101(d), is amended--
(A) in subsection (c)--
(i) in paragraph (1)(D)(i), by striking ``1848(o)'' and
inserting ``, 1848(o), and 1886(n)''; and
(ii) in paragraph (6)(A), by inserting ``and
subsections (b)(3)(B)(ix) and (n) of section 1886'' after
``section 1848''; and
(B) in subsection (f), by inserting ``and subsection (m)''
after ``under subsection (l)''.
SEC. 4103. TREATMENT OF PAYMENTS AND SAVINGS; IMPLEMENTATION FUNDING.
(a) Premium Hold Harmless.--
(1) In general.--Section 1839(a)(1) of the Social Security Act
(42 U.S.C. 1395r(a)(1)) is amended by adding at the end the
following: ``In applying this paragraph there shall not be taken
into account additional payments under section 1848(o) and section
1853(l)(3) and the Government contribution under section
1844(a)(3).''.
(2) Payment.--Section 1844(a) of such Act (42 U.S.C. 1395w(a))
is amended--
(A) in paragraph (2), by striking the period at the end and
inserting ``; plus''; and
(B) by adding at the end the following new paragraph:
``(3) a Government contribution equal to the amount of payment
incentives payable under sections 1848(o) and 1853(l)(3).''.
(b) Medicare Improvement Fund.--Section 1898 of the Social Security
Act (42 U.S.C. 1395iii), as added by section 7002(a) of the
Supplemental Appropriations Act, 2008 (Public Law 110-252) and as
amended by section 188(a)(2) of the Medicare Improvements for Patients
and Providers Act of 2008 (Public Law 110-275; 122 Stat. 2589) and by
section 6 of the QI Program Supplemental Funding Act of 2008, is
amended--
(1) in subsection (a)--
(A) by inserting ``medicare'' before ``fee-for-service'';
and
(B) by inserting before the period at the end the
following: ``including, but not limited to, an increase in the
conversion factor under section 1848(d) to address, in whole or
in part, any projected shortfall in the conversion factor for
2014 relative to the conversion factor for 2008 and adjustments
to payments for items and services furnished by providers of
services and suppliers under such original medicare fee-for-
service program''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``during fiscal year
2014,'' and all that follows and inserting the following:
``during--
``(A) fiscal year 2014, $22,290,000,000; and
``(B) fiscal year 2020 and each subsequent fiscal year, the
Secretary's estimate, as of July 1 of the fiscal year, of the
aggregate reduction in expenditures under this title during the
preceding fiscal year directly resulting from the reduction in
payment amounts under sections 1848(a)(7), 1853(l)(4),
1853(m)(4), and 1886(b)(3)(B)(ix).''; and
(B) by adding at the end the following new paragraph:
``(4) No effect on payments in subsequent years.--In the case
that expenditures from the Fund are applied to, or otherwise
affect, a payment rate for an item or service under this title for
a year, the payment rate for such item or service shall be computed
for a subsequent year as if such application or effect had never
occurred.''.
(c) Implementation Funding.--In addition to funds otherwise
available, out of any funds in the Treasury not otherwise appropriated,
there are appropriated to the Secretary of Health and Human Services
for the Center for Medicare & Medicaid Services Program Management
Account, $100,000,000 for each of fiscal years 2009 through 2015 and
$45,000,000 for fiscal year 2016, which shall be available for purposes
of carrying out the provisions of (and amendments made by) this
subtitle. Amounts appropriated under this subsection for a fiscal year
shall be available until expended.
SEC. 4104. STUDIES AND REPORTS ON HEALTH INFORMATION TECHNOLOGY.
(a) Study and Report on Application of EHR Payment Incentives for
Providers Not Receiving Other Incentive Payments.--
(1) Study.--
(A) In general.--The Secretary of Health and Human Services
shall conduct a study to determine the extent to which and
manner in which payment incentives (such as under title XVIII
or XIX of the Social Security Act) and other funding for
purposes of implementing and using certified EHR technology (as
defined in section 1848(o)(4) of the Social Security Act, as
added by section 4101(a)) should be made available to health
care providers who are receiving minimal or no payment
incentives or other funding under this Act, under title XIII of
division A, under title XVIII or XIX of such Act, or otherwise,
for such purposes.
(B) Details of study.--Such study shall include an
examination of--
(i) the adoption rates of certified EHR technology by
such health care providers;
(ii) the clinical utility of such technology by such
health care providers;
(iii) whether the services furnished by such health
care providers are appropriate for or would benefit from
the use of such technology;
(iv) the extent to which such health care providers
work in settings that might otherwise receive an incentive
payment or other funding under this Act, under title XIII
of division A, under title XVIII or XIX of the Social
Security Act, or otherwise;
(v) the potential costs and the potential benefits of
making payment incentives and other funding available to
such health care providers; and
(vi) any other issues the Secretary deems to be
appropriate.
(2) Report.--Not later than June 30, 2010, the Secretary shall
submit to Congress a report on the findings and conclusions of the
study conducted under paragraph (1).
(b) Study and Report on Availability of Open Source Health
Information Technology Systems.--
(1) Study.--
(A) In general.--The Secretary of Health and Human Services
shall, in consultation with the Under Secretary for Health of
the Veterans Health Administration, the Director of the Indian
Health Service, the Secretary of Defense, the Director of the
Agency for Healthcare Research and Quality, the Administrator
of the Health Resources and Services Administration, and the
Chairman of the Federal Communications Commission, conduct a
study on--
(i) the current availability of open source health
information technology systems to Federal safety net
providers (including small, rural providers);
(ii) the total cost of ownership of such systems in
comparison to the cost of proprietary commercial products
available;
(iii) the ability of such systems to respond to the
needs of, and be applied to, various populations (including
children and disabled individuals); and
(iv) the capacity of such systems to facilitate
interoperability.
(B) Considerations.--In conducting the study under
subparagraph (A), the Secretary of Health and Human Services
shall take into account the circumstances of smaller health
care providers, health care providers located in rural or other
medically underserved areas, and safety net providers that
deliver a significant level of health care to uninsured
individuals, Medicaid beneficiaries, SCHIP beneficiaries, and
other vulnerable individuals.
(2) Report.--Not later than October 1, 2010, the Secretary of
Health and Human Services shall submit to Congress a report on the
findings and the conclusions of the study conducted under paragraph
(1), together with recommendations for such legislation and
administrative action as the Secretary determines appropriate.
Subtitle B--Medicaid Incentives
SEC. 4201. MEDICAID PROVIDER HIT ADOPTION AND OPERATION PAYMENTS;
IMPLEMENTATION FUNDING.
(a) In General.--Section 1903 of the Social Security Act (42 U.S.C.
1396b) is amended--
(1) in subsection (a)(3)--
(A) by striking ``and'' at the end of subparagraph (D);
(B) by striking ``plus'' at the end of subparagraph (E) and
inserting ``and''; and
(C) by adding at the end the following new subparagraph:
``(F)(i) 100 percent of so much of the sums expended during
such quarter as are attributable to payments to Medicaid
providers described in subsection (t)(1) to encourage the
adoption and use of certified EHR technology; and
``(ii) 90 percent of so much of the sums expended during
such quarter as are attributable to payments for reasonable
administrative expenses related to the administration of
payments described in clause (i) if the State meets the
condition described in subsection (t)(9); plus''; and
(2) by inserting after subsection (s) the following new
subsection:
``(t)(1) For purposes of subsection (a)(3)(F), the payments
described in this paragraph to encourage the adoption and use of
certified EHR technology are payments made by the State in accordance
with this subsection --
``(A) to Medicaid providers described in paragraph (2)(A) not
in excess of 85 percent of net average allowable costs (as defined
in paragraph (3)(E)) for certified EHR technology (and support
services including maintenance and training that is for, or is
necessary for the adoption and operation of, such technology) with
respect to such providers; and
``(B) to Medicaid providers described in paragraph (2)(B) not
in excess of the maximum amount permitted under paragraph (5) for
the provider involved.
``(2) In this subsection and subsection (a)(3)(F), the term
`Medicaid provider' means--
``(A) an eligible professional (as defined in paragraph
(3)(B))--
``(i) who is not hospital-based and has at least 30 percent
of the professional's patient volume (as estimated in
accordance with a methodology established by the Secretary)
attributable to individuals who are receiving medical
assistance under this title;
``(ii) who is not described in clause (i), who is a
pediatrician, who is not hospital-based, and who has at least
20 percent of the professional's patient volume (as estimated
in accordance with a methodology established by the Secretary)
attributable to individuals who are receiving medical
assistance under this title; and
``(iii) who practices predominantly in a Federally
qualified health center or rural health clinic and has at least
30 percent of the professional's patient volume (as estimated
in accordance with a methodology established by the Secretary)
attributable to needy individuals (as defined in paragraph
(3)(F)); and
``(B)(i) a children's hospital, or
``(ii) an acute-care hospital that is not described in clause
(i) and that has at least 10 percent of the hospital's patient
volume (as estimated in accordance with a methodology established
by the Secretary) attributable to individuals who are receiving
medical assistance under this title.
An eligible professional shall not qualify as a Medicaid provider under
this subsection unless any right to payment under sections 1848(o) and
1853(l) with respect to the eligible professional has been waived in a
manner specified by the Secretary. For purposes of calculating patient
volume under subparagraph (A)(iii), insofar as it is related to
uncompensated care, the Secretary may require the adjustment of such
uncompensated care data so that it would be an appropriate proxy for
charity care, including a downward adjustment to eliminate bad debt
data from uncompensated care. In applying subparagraphs (A) and
(B)(ii), the methodology established by the Secretary for patient
volume shall include individuals enrolled in a Medicaid managed care
plan (under section 1903(m) or section 1932).
``(3) In this subsection and subsection (a)(3)(F):
``(A) The term `certified EHR technology' means a qualified
electronic health record (as defined in 3000(13) of the Public
Health Service Act) that is certified pursuant to section
3001(c)(5) of such Act as meeting standards adopted under section
3004 of such Act that are applicable to the type of record involved
(as determined by the Secretary, such as an ambulatory electronic
health record for office-based physicians or an inpatient hospital
electronic health record for hospitals).
``(B) The term `eligible professional' means a--
``(i) physician;
``(ii) dentist;
``(iii) certified nurse mid-wife;
``(iv) nurse practitioner; and
``(v) physician assistant insofar as the assistant is
practicing in a rural health clinic that is led by a physician
assistant or is practicing in a Federally qualified health
center that is so led.
``(C) The term `average allowable costs' means, with respect to
certified EHR technology of Medicaid providers described in
paragraph (2)(A) for--
``(i) the first year of payment with respect to such a
provider, the average costs for the purchase and initial
implementation or upgrade of such technology (and support
services including training that is for, or is necessary for
the adoption and initial operation of, such technology) for
such providers, as determined by the Secretary based upon
studies conducted under paragraph (4)(C); and
``(ii) a subsequent year of payment with respect to such a
provider, the average costs not described in clause (i)
relating to the operation, maintenance, and use of such
technology for such providers, as determined by the Secretary
based upon studies conducted under paragraph (4)(C).
``(D) The term `hospital-based' means, with respect to an
eligible professional, a professional (such as a pathologist,
anesthesiologist, or emergency physician) who furnishes
substantially all of the individual's professional services in a
hospital setting (whether inpatient or outpatient) and through the
use of the facilities and equipment, including qualified electronic
health records, of the hospital. The determination of whether an
eligible professional is a hospital-based eligible professional
shall be made on the basis of the site of service (as defined by
the Secretary) and without regard to any employment or billing
arrangement between the eligible professional and any other
provider.
``(E) The term `net average allowable costs' means, with
respect to a Medicaid provider described in paragraph (2)(A),
average allowable costs reduced by any payment that is made to such
Medicaid provider from any other source (other than under this
subsection or by a State or local government) that is directly
attributable to payment for certified EHR technology or support
services described in subparagraph (C).
``(F) The term `needy individual' means, with respect to a
Medicaid provider, an individual--
``(i) who is receiving assistance under this title;
``(ii) who is receiving assistance under title XXI;
``(iii) who is furnished uncompensated care by the
provider; or
``(iv) for whom charges are reduced by the provider on a
sliding scale basis based on an individual's ability to pay.
``(4)(A) With respect to a Medicaid provider described in paragraph
(2)(A), subject to subparagraph (B), in no case shall--
``(i) the net average allowable costs under this subsection
for the first year of payment (which may not be later than
2016), which is intended to cover the costs described in
paragraph (3)(C)(i), exceed $25,000 (or such lesser amount as
the Secretary determines based on studies conducted under
subparagraph (C));
``(ii) the net average allowable costs under this
subsection for a subsequent year of payment, which is intended
to cover costs described in paragraph (3)(C)(ii), exceed
$10,000; and
``(iii) payments be made for costs described in clause (ii)
after 2021 or over a period of longer than 5 years.
``(B) In the case of Medicaid provider described in paragraph
(2)(A)(ii), the dollar amounts specified in subparagraph (A) shall be
\2/3\ of the dollar amounts otherwise specified.
``(C) For the purposes of determining average allowable costs under
this subsection, the Secretary shall study the average costs to
Medicaid providers described in paragraph (2)(A) of purchase and
initial implementation and upgrade of certified EHR technology
described in paragraph (3)(C)(i) and the average costs to such
providers of operations, maintenance, and use of such technology
described in paragraph (3)(C)(ii). In determining such costs for such
providers, the Secretary may utilize studies of such amounts submitted
by States.
``(5)(A) In no case shall the payments described in paragraph
(1)(B) with respect to a Medicaid provider described in paragraph
(2)(B) exceed--
``(i) in the aggregate the product of--
``(I) the overall hospital EHR amount for the provider
computed under subparagraph (B); and
``(II) the Medicaid share for such provider computed
under subparagraph (C);
``(ii) in any year 50 percent of the product described in
clause (i); and
``(iii) in any 2-year period 90 percent of such product.
``(B) For purposes of this paragraph, the overall hospital EHR
amount, with respect to a Medicaid provider, is the sum of the
applicable amounts specified in section 1886(n)(2)(A) for such provider
for the first 4 payment years (as estimated by the Secretary)
determined as if the Medicare share specified in clause (ii) of such
section were 1. The Secretary shall establish, in consultation with the
State, the overall hospital EHR amount for each such Medicaid provider
eligible for payments under paragraph (1)(B). For purposes of this
subparagraph in computing the amounts under section 1886(n)(2)(C) for
payment years after the first payment year, the Secretary shall assume
that in subsequent payment years discharges increase at the average
annual rate of growth of the most recent 3 years for which discharge
data are available per year.
``(C) The Medicaid share computed under this subparagraph, for a
Medicaid provider for a period specified by the Secretary, shall be
calculated in the same manner as the Medicare share under section
1886(n)(2)(D) for such a hospital and period, except that there shall
be substituted for the numerator under clause (i) of such section the
amount that is equal to the number of inpatient-bed-days (as
established by the Secretary) which are attributable to individuals who
are receiving medical assistance under this title and who are not
described in section 1886(n)(2)(D)(i). In computing inpatient-bed-days
under the previous sentence, the Secretary shall take into account
inpatient-bed-days attributable to inpatient-bed-days that are paid for
individuals enrolled in a Medicaid managed care plan (under section
1903(m) or section 1932).
``(D) In no case may the payments described in paragraph (1)(B)
with respect to a Medicaid provider described in paragraph (2)(B) be
paid--
``(i) for any year beginning after 2016 unless the provider has
been provided payment under paragraph (1)(B) for the previous year;
and
``(ii) over a period of more than 6 years of payment.
``(6) Payments described in paragraph (1) are not in accordance
with this subsection unless the following requirements are met:
``(A)(i) The State provides assurances satisfactory to the
Secretary that amounts received under subsection (a)(3)(F) with
respect to payments to a Medicaid provider are paid, subject to
clause (ii), directly to such provider (or to an employer or
facility to which such provider has assigned payments) without any
deduction or rebate.
``(ii) Amounts described in clause (i) may also be paid to an
entity promoting the adoption of certified EHR technology, as
designated by the State, if participation in such a payment
arrangement is voluntary for the eligible professional involved and
if such entity does not retain more than 5 percent of such payments
for costs not related to certified EHR technology (and support
services including maintenance and training) that is for, or is
necessary for the operation of, such technology.
``(B) A Medicaid provider described in paragraph (2)(A) is
responsible for payment of the remaining 15 percent of the net
average allowable cost.
``(C)(i) Subject to clause (ii), with respect to payments to a
Medicaid provider--
``(I) for the first year of payment to the Medicaid
provider under this subsection, the Medicaid provider
demonstrates that it is engaged in efforts to adopt, implement,
or upgrade certified EHR technology; and
``(II) for a year of payment, other than the first year of
payment to the Medicaid provider under this subsection, the
Medicaid provider demonstrates meaningful use of certified EHR
technology through a means that is approved by the State and
acceptable to the Secretary, and that may be based upon the
methodologies applied under section 1848(o) or 1886(n).
``(ii) In the case of a Medicaid provider who has completed
adopting, implementing, or upgrading such technology prior to the
first year of payment to the Medicaid provider under this
subsection, clause (i)(I) shall not apply and clause (i)(II) shall
apply to each year of payment to the Medicaid provider under this
subsection, including the first year of payment.
``(D) To the extent specified by the Secretary, the certified
EHR technology is compatible with State or Federal administrative
management systems.
For purposes of subparagraph (B), a Medicaid provider described in
paragraph (2)(A) may accept payments for the costs described in such
subparagraph from a State or local government. For purposes of
subparagraph (C), in establishing the means described in such
subparagraph, which may include clinical quality reporting to the
State, the State shall ensure that populations with unique needs, such
as children, are appropriately addressed.
``(7) With respect to Medicaid providers described in paragraph
(2)(A), the Secretary shall ensure coordination of payment with respect
to such providers under sections 1848(o) and 1853(l) and under this
subsection to assure no duplication of funding. Such coordination shall
include, to the extent practicable, a data matching process between
State Medicaid agencies and the Centers for Medicare & Medicaid
Services using national provider identifiers. For such purposes, the
Secretary may require the submission of such data relating to payments
to such Medicaid providers as the Secretary may specify.
``(8) In carrying out paragraph (6)(C), the State and Secretary
shall seek, to the maximum extent practicable, to avoid duplicative
requirements from Federal and State governments to demonstrate
meaningful use of certified EHR technology under this title and title
XVIII. In doing so, the Secretary may deem satisfaction of requirements
for such meaningful use for a payment year under title XVIII to be
sufficient to qualify as meaningful use under this subsection. The
Secretary may also specify the reporting periods under this subsection
in order to carry out this paragraph.
``(9) In order to be provided Federal financial participation under
subsection (a)(3)(F)(ii), a State must demonstrate to the satisfaction
of the Secretary, that the State--
``(A) is using the funds provided for the purposes of
administering payments under this subsection, including tracking of
meaningful use by Medicaid providers;
``(B) is conducting adequate oversight of the program under
this subsection, including routine tracking of meaningful use
attestations and reporting mechanisms; and
``(C) is pursuing initiatives to encourage the adoption of
certified EHR technology to promote health care quality and the
exchange of health care information under this title, subject to
applicable laws and regulations governing such exchange.
``(10) The Secretary shall periodically submit reports to the
Committee on Energy and Commerce of the House of Representatives and
the Committee on Finance of the Senate on status, progress, and
oversight of payments described in paragraph (1), including steps taken
to carry out paragraph (7). Such reports shall also describe the extent
of adoption of certified EHR technology among Medicaid providers
resulting from the provisions of this subsection and any improvements
in health outcomes, clinical quality, or efficiency resulting from such
adoption.''.
(b) Implementation Funding.--In addition to funds otherwise
available, out of any funds in the Treasury not otherwise appropriated,
there are appropriated to the Secretary of Health and Human Services
for the Centers for Medicare & Medicaid Services Program Management
Account, $40,000,000 for each of fiscal years 2009 through 2015 and
$20,000,000 for fiscal year 2016, which shall be available for purposes
of carrying out the provisions of (and the amendments made by) this
section. Amounts appropriated under this subsection for a fiscal year
shall be available until expended.
Subtitle C--Miscellaneous Medicare Provisions
SEC. 4301. MORATORIA ON CERTAIN MEDICARE REGULATIONS.
(a) Delay in Phase Out of Medicare Hospice Budget Neutrality
Adjustment Factor During Fiscal Year 2009.--Notwithstanding any other
provision of law, including the final rule published on August 8, 2008,
73 Federal Register 46464 et seq., relating to Medicare Program;
Hospice Wage Index for Fiscal Year 2009, the Secretary of Health and
Human Services shall not phase out or eliminate the budget neutrality
adjustment factor in the Medicare hospice wage index before October 1,
2009, and the Secretary shall recompute and apply the final Medicare
hospice wage index for fiscal year 2009 as if there had been no
reduction in the budget neutrality adjustment factor.
(b) Non-Application of Phased-Out Indirect Medical Education (IME)
Adjustment Factor for Fiscal Year 2009.--
(1) In general.--Section 412.322 of title 42, Code of Federal
Regulations, shall be applied without regard to paragraph (c) of
such section, and the Secretary of Health and Human Services shall
recompute payments for discharges occurring on or after October 1,
2008, as if such paragraph had never been in effect.
(2) No effect on subsequent years.--Nothing in paragraph (1)
shall be construed as having any effect on the application of
paragraph (d) of section 412.322 of title 42, Code of Federal
Regulations.
(c) Funding for Implementation.--In addition to funds otherwise
available, for purposes of implementing the provisions of subsections
(a) and (b), including costs incurred in reprocessing claims in
carrying out such provisions, the Secretary of Health and Human
Services shall provide for the transfer from the Federal Hospital
Insurance Trust Fund established under section 1817 of the Social
Security Act (42 U.S.C. 1395i) to the Centers for Medicare & Medicaid
Services Program Management Account of $2,000,000 for fiscal year 2009.
SEC. 4302. LONG-TERM CARE HOSPITAL TECHNICAL CORRECTIONS.
(a) Payment.--Subsection (c) of section 114 of the Medicare,
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-173) is
amended--
(1) in paragraph (1)--
(A) by amending the heading to read as follows: ``Delay in
application of 25 percent patient threshold payment
adjustment'';
(B) by striking ``the date of the enactment of this Act''
and inserting ``July 1, 2007,''; and
(C) in subparagraph (A), by inserting ``or to a long-term
care hospital, or satellite facility, that as of December 29,
2007, was co-located with an entity that is a provider-based,
off-campus location of a subsection (d) hospital which did not
provide services payable under section 1886(d) of the Social
Security Act at the off-campus location'' after ``freestanding
long-term care hospitals''; and
(2) in paragraph (2)--
(A) in subparagraph (B)(ii), by inserting ``or that is
described in section 412.22(h)(3)(i) of such title'' before the
period; and
(B) in subparagraph (C), by striking ``the date of the
enactment of this Act'' and inserting ``October 1, 2007 (or
July 1, 2007, in the case of a satellite facility described in
section 412.22(h)(3)(i) of title 42, Code of Federal
Regulations)''.
(b) Moratorium.--Subsection (d)(3)(A) of such section is amended by
striking ``if the hospital or facility'' and inserting ``if the
hospital or facility obtained a certificate of need for an increase in
beds that is in a State for which such certificate of need is required
and that was issued on or after April 1, 2005, and before December 29,
2007, or if the hospital or facility''.
(c) Effective Date.--The amendments made by this section shall be
effective and apply as if included in the enactment of the Medicare,
Medicaid, and SCHIP Extension Act of 2007 (Public Law 110-173).
TITLE V--STATE FISCAL RELIEF
SEC. 5000. PURPOSES; TABLE OF CONTENTS.
(a) Purposes.--The purposes of this title are as follows:
(1) To provide fiscal relief to States in a period of economic
downturn.
(2) To protect and maintain State Medicaid programs during a
period of economic downturn, including by helping to avert cuts to
provider payment rates and benefits or services, and to prevent
constrictions of income eligibility requirements for such programs,
but not to promote increases in such requirements.
(b) Table of Contents.--The table of contents for this title is as
follows:
TITLE V--STATE FISCAL RELIEF
Sec. 5000. Purposes; table of contents.
Sec. 5001. Temporary increase of Medicaid FMAP.
Sec. 5002. Temporary increase in DSH allotments during recession.
Sec. 5003. Extension of moratoria on certain Medicaid final regulations.
Sec. 5004. Extension of transitional medical assistance (TMA).
Sec. 5005. Extension of the qualifying individual (QI) program.
Sec. 5006. Protections for Indians under Medicaid and CHIP.
Sec. 5007. Funding for oversight and implementation.
Sec. 5008. GAO study and report regarding State needs during periods of
national economic downturn.
SEC. 5001. TEMPORARY INCREASE OF MEDICAID FMAP.
(a) Permitting Maintenance of Fmap.--Subject to subsections (e),
(f), and (g), if the FMAP determined without regard to this section for
a State for--
(1) fiscal year 2009 is less than the FMAP as so determined for
fiscal year 2008, the FMAP for the State for fiscal year 2008 shall
be substituted for the State's FMAP for fiscal year 2009, before
the application of this section;
(2) fiscal year 2010 is less than the FMAP as so determined for
fiscal year 2008 or fiscal year 2009 (after the application of
paragraph (1)), the greater of such FMAP for the State for fiscal
year 2008 or fiscal year 2009 shall be substituted for the State's
FMAP for fiscal year 2010, before the application of this section;
and
(3) fiscal year 2011 is less than the FMAP as so determined for
fiscal year 2008, fiscal year 2009 (after the application of
paragraph (1)), or fiscal year 2010 (after the application of
paragraph (2)), the greatest of such FMAP for the State for fiscal
year 2008, fiscal year 2009, or fiscal year 2010 shall be
substituted for the State's FMAP for fiscal year 2011, before the
application of this section, but only for the first calendar
quarter in fiscal year 2011.
(b) General 6.2 Percentage Point Increase.--
(1) In general.--Subject to subsections (e), (f), and (g) and
paragraph (2), for each State for calendar quarters during the
recession adjustment period (as defined in subsection (h)(3)), the
FMAP (after the application of subsection (a)) shall be increased
(without regard to any limitation otherwise specified in section
1905(b) of the Social Security Act (42 U.S.C. 1396d(b))) by 6.2
percentage points.
(2) Special election for territories.--In the case of a State
that is not one of the 50 States or the District of Columbia,
paragraph (1) shall only apply if the State makes a one-time
election, in a form and manner specified by the Secretary and for
the entire recession adjustment period, to apply the increase in
FMAP under paragraph (1) and a 15 percent increase under subsection
(d) instead of applying a 30 percent increase under subsection (d).
(c) Additional Relief Based on Increase in Unemployment.--
(1) In general.--Subject to subsections (e), (f), and (g), if a
State is a qualifying State under paragraph (2) for a calendar
quarter occurring during the recession adjustment period, the FMAP
for the State shall be further increased by the number of
percentage points equal to the product of--
(A) the State percentage applicable for the State under
section 1905(b) of the Social Security Act (42 U.S.C. 1396d(b))
after the application of subsection (a) and after the
application of \1/2\ of the increase under subsection (b); and
(B) the applicable percent determined in paragraph (3) for
the calendar quarter (or, if greater, for a previous such
calendar quarter).
(2) Qualifying criteria.--
(A) In general.--For purposes of paragraph (1), a State
qualifies for additional relief under this subsection for a
calendar quarter occurring during the recession adjustment
period if the State is 1 of the 50 States or the District of
Columbia and the State satisfies any of the following criteria
for the quarter:
(i) The State unemployment increase percentage (as
defined in paragraph (4)) for the quarter is at least 1.5
percentage points but less than 2.5 percentage points.
(ii) The State unemployment increase percentage for the
quarter is at least 2.5 percentage points but less than 3.5
percentage points.
(iii) The State unemployment increase percentage for
the quarter is at least 3.5 percentage points.
(B) Maintenance of status.--If a State qualifies for
additional relief under this subsection for a calendar quarter,
it shall be deemed to have qualified for such relief for each
subsequent calendar quarter ending before July 1, 2010.
(3) Applicable percent.--
(A) In general.--For purposes of paragraph (1), subject to
subparagraph (B), the applicable percent is--
(i) 5.5 percent, if the State satisfies the criteria
described in paragraph (2)(A)(i) for the calendar quarter;
(ii) 8.5 percent if the State satisfies the criteria
described in paragraph (2)(A)(ii) for the calendar quarter;
and
(iii) 11.5 percent if the State satisfies the criteria
described in paragraph (2)(A)(iii) for the calendar
quarter.
(B) Maintenance of higher applicable percent.--
(i) Hold harmless period.--If the percent applied to a
State under subparagraph (A) for any calendar quarter in
the recession adjustment period beginning on or after
January 1, 2009, and ending before July 1, 2010,
(determined without regard to this subparagraph) is less
than the percent applied for the preceding quarter (as so
determined), the higher applicable percent shall continue
in effect for each subsequent calendar quarter ending
before July 1, 2010.
(ii) Notice of lower applicable percent.--The Secretary
shall notify a State at least 60 days prior to applying any
lower applicable percent to the State under this paragraph.
(4) Computation of state unemployment increase percentage.--
(A) In general.--In this subsection, the ``State
unemployment increase percentage'' for a State for a calendar
quarter is equal to the number of percentage points (if any) by
which--
(i) the average monthly unemployment rate for the State
for months in the most recent previous 3-consecutive-month
period for which data are available, subject to
subparagraph (C); exceeds
(ii) the lowest average monthly unemployment rate for
the State for any 3-consecutive-month period preceding the
period described in clause (i) and beginning on or after
January 1, 2006.
(B) Average monthly unemployment rate defined.--In this
paragraph, the term ``average monthly unemployment rate'' means
the average of the monthly number unemployed, divided by the
average of the monthly civilian labor force, seasonally
adjusted, as determined based on the most recent monthly
publications of the Bureau of Labor Statistics of the
Department of Labor.
(C) Special rule.--With respect to--
(i) the first 2 calendar quarters of the recession
adjustment period, the most recent previous 3-consecutive-
month period described in subparagraph (A)(i) shall be the
3-consecutive-month period beginning with October 2008; and
(ii) the last 2 calendar quarters of the recession
adjustment period, the most recent previous 3-consecutive-
month period described in such subparagraph shall be the 3-
consecutive-month period beginning with December 2009, or,
if it results in a higher applicable percent under
paragraph (3), the 3-consecutive-month period beginning
with January 2010.
(d) Increase in Cap on Medicaid Payments to Territories.--Subject
to subsections (f) and (g), with respect to entire fiscal years
occurring during the recession adjustment period and with respect to
fiscal years only a portion of which occurs during such period (and in
proportion to the portion of the fiscal year that occurs during such
period), the amounts otherwise determined for Puerto Rico, the Virgin
Islands, Guam, the Northern Mariana Islands, and American Samoa under
subsections (f) and (g) of section 1108 of the Social Security Act (42
6 U.S.C. 1308) shall each be increased by 30 percent (or, in the case
of an election under subsection (b)(2), 15 percent). In the case of
such an election by a territory, subsection (a)(1) of such section
shall be applied without regard to any increase in payment made to the
territory under part E of title IV of such Act that is attributable to
the increase in FMAP effected under subsection (b) for the territory.
(e) Scope of Application.--The increases in the FMAP for a State
under this section shall apply for purposes of title XIX of the Social
Security Act and shall not apply with respect to--
(1) disproportionate share hospital payments described in
section 1923 of such Act (42 U.S.C. 1396r-4);
(2) payments under title IV of such Act (42 U.S.C. 601 et seq.)
(except that the increases under subsections (a) and (b) shall
apply to payments under part E of title IV of such Act (42 U.S.C.
670 et seq.) and, for purposes of the application of this section
to the District of Columbia, payments under such part shall be
deemed to be made on the basis of the FMAP applied with respect to
such District for purposes of title XIX and as increased under
subsection (b));
(3) payments under title XXI of such Act (42 U.S.C. 1397aa et
seq.);
(4) any payments under title XIX of such Act that are based on
the enhanced FMAP described in section 2105(b) of such Act (42
U.S.C. 1397ee(b)); or
(5) any payments under title XIX of such Act that are
attributable to expenditures for medical assistance provided to
individuals made eligible under a State plan under title XIX of the
Social Security Act (including under any waiver under such title or
under section 1115 of such Act (42 U.S.C. 1315)) because of income
standards (expressed as a percentage of the poverty line) for
eligibility for medical assistance that are higher than the income
standards (as so expressed) for such eligibility as in effect on
July 1, 2008, (including as such standards were proposed to be in
effect under a State law enacted but not effective as of such date
or a State plan amendment or waiver request under title XIX of such
Act that was pending approval on such date).
(f) State Ineligibility; Limitation; Special Rules.--
(1) Maintenance of eligibility requirements.--
(A) In general.--Subject to subparagraphs (B) and (C), a
State is not eligible for an increase in its FMAP under
subsection (a), (b), or (c), or an increase in a cap amount
under subsection (d), if eligibility standards, methodologies,
or procedures under its State plan under title XIX of the
Social Security Act (including any waiver under such title or
under section 1115 of such Act (42 U.S.C. 1315)) are more
restrictive than the eligibility standards, methodologies, or
procedures, respectively, under such plan (or waiver) as in
effect on July 1, 2008.
(B) State reinstatement of eligibility permitted.--Subject
to subparagraph (C), a State that has restricted eligibility
standards, methodologies, or procedures under its State plan
under title XIX of the Social Security Act (including any
waiver under such title or under section 1115 of such Act (42
U.S.C. 1315)) after July 1, 2008, is no longer ineligible under
subparagraph (A) beginning with the first calendar quarter in
which the State has reinstated eligibility standards,
methodologies, or procedures that are no more restrictive than
the eligibility standards, methodologies, or procedures,
respectively, under such plan (or waiver) as in effect on July
1, 2008.
(C) Special rules.--A State shall not be ineligible under
subparagraph (A)--
(i) for the calendar quarters before July 1, 2009, on
the basis of a restriction that was applied after July 1,
2008, and before the date of the enactment of this Act, if
the State prior to July 1, 2009, has reinstated eligibility
standards, methodologies, or procedures that are no more
restrictive than the eligibility standards, methodologies,
or procedures, respectively, under such plan (or waiver) as
in effect on July 1, 2008; or
(ii) on the basis of a restriction that was directed to
be made under State law as in effect on July 1, 2008, and
would have been in effect as of such date, but for a delay
in the effective date of a waiver under section 1115 of
such Act with respect to such restriction.
(2) Compliance with prompt pay requirements.--
(A) Application to practitioners.--
(i) In general.--Subject to the succeeding provisions
of this subparagraph, no State shall be eligible for an
increased FMAP rate as provided under this section for any
claim received by a State from a practitioner subject to
the terms of section 1902(a)(37)(A) of the Social Security
Act (42 U.S.C. 1396a(a)(37)(A)) for such days during any
period in which that State has failed to pay claims in
accordance with such section as applied under title XIX of
such Act.
(ii) Reporting requirement.--Each State shall report to
the Secretary, on a quarterly basis, its compliance with
the requirements of clause (i) as such requirements pertain
to claims made for covered services during each month of
the preceding quarter.
(iii) Waiver authority.--The Secretary may waive the
application of clause (i) to a State, or the reporting
requirement imposed under clause (ii), during any period in
which there are exigent circumstances, including natural
disasters, that prevent the timely processing of claims or
the submission of such a report.
(iv) Application to claims.--Clauses (i) and (ii) shall
only apply to claims made for covered services after the
date of enactment of this Act.
(B) Application to nursing facilities and hospitals.--
(i) In general.--Subject to clause (ii), the provisions
of subparagraph (A) shall apply with respect to a nursing
facility or hospital, insofar as it is paid under title XIX
of the Social Security Act on the basis of submission of
claims, in the same or similar manner (but within the same
timeframe) as such provisions apply to practitioners
described in such subparagraph.
(ii) Grace period.--Notwithstanding clause (i), no
period of ineligibility shall be imposed against a State
prior to June 1, 2009, on the basis of the State failing to
pay a claim in accordance with such clause.
(3) State's application toward rainy day fund.--A State is not
eligible for an increase in its FMAP under subsection (b) or (c),
or an increase in a cap amount under subsection (d), if any amounts
attributable (directly or indirectly) to such increase are
deposited or credited into any reserve or rainy day fund of the
State.
(4) No waiver authority.--Except as provided in paragraph
(2)(A)(iii), the Secretary may not waive the application of this
subsection or subsection (g) under section 1115 of the Social
Security Act or otherwise.
(5) Limitation of fmap to 100 percent.--In no case shall an
increase in FMAP under this section result in an FMAP that exceeds
100 percent.
(6) Treatment of certain expenditures.--With respect to
expenditures described in section 2105(a)(1)(B) of the Social
Security Act (42 U.S.C. 1397ee(a)(1)(B)), as in effect before April
1, 2009, that are made during the period beginning on October 1,
2008, and ending on March 31, 2009, any additional Federal funds
that are paid to a State as a result of this section that are
attributable to such expenditures shall not be counted against any
allotment under section 2104 of such Act (42 U.S.C. 1397dd).
(g) Requirements.--
(1) State reports.--Each State that is paid additional Federal
funds as a result of this section shall, not later than September
30, 2011, submit a report to the Secretary, in such form and such
manner as the Secretary shall determine, regarding how the
additional Federal funds were expended.
(2) Additional requirement for certain states.--In the case of
a State that requires political subdivisions within the State to
contribute toward the non-Federal share of expenditures under the
State Medicaid plan required under section 1902(a)(2) of the Social
Security Act (42 U.S.C. 1396a(a)(2)), the State is not eligible for
an increase in its FMAP under subsection (b) or (c), or an increase
in a cap amount under subsection (d), if it requires that such
political subdivisions pay for quarters during the recession
adjustment period a greater percentage of the non-Federal share of
such expenditures, or a greater percentage of the non-Federal share
of payments under section 1923, than the respective percentage that
would have been required by the State under such plan on September
30, 2008, prior to application of this section.
(h) Definitions.--In this section, except as otherwise provided:
(1) FMAP.--The term ``FMAP'' means the Federal medical
assistance percentage, as defined in section 1905(b) of the Social
Security Act (42 U.S.C. 1396d(b)), as determined without regard to
this section except as otherwise specified.
(2) Poverty line.--The term ``poverty line'' has the meaning
given such term in section 673(2) of the Community Services Block
Grant Act (42 U.S.C. 9902(2)), including any revision required by
such section.
(3) Recession adjustment period.--The term ``recession
adjustment period'' means the period beginning on October 1, 2008,
and ending on December 31, 2010.
(4) Secretary.--The term ``Secretary'' means the Secretary of
Health and Human Services.
(5) State.--The term ``State'' has the meaning given such term
in section 1101(a)(1) of the Social Security Act (42 U.S.C.
1301(a)(1)) for purposes of title XIX of the Social Security Act
(42 U.S.C. 1396 et seq.).
(i) Sunset.--This section shall not apply to items and services
furnished after the end of the recession adjustment period.
(j) Limitation on FMAP Change.--The increase in FMAP effected under
section 614 of the Children's Health Insurance Program Reauthorization
Act of 2009 shall not apply in the computation of the enhanced FMAP
under title XXI or XIX of the Social Security Act for any period
(notwithstanding subsection (i)).
SEC. 5002. TEMPORARY INCREASE IN DSH ALLOTMENTS DURING RECESSION.
Section 1923(f)(3) of the Social Security Act (42 U.S.C. 1396r-
4(f)(3)) is amended--
(1) in subparagraph (A), by striking ``paragraph (6)'' and
inserting ``paragraph (6) and subparagraph (E)''; and
(2) by adding at the end the following new subparagraph:
``(E) Temporary increase in allotments during recession.--
``(i) In general.--Subject to clause (ii), the DSH
allotment for any State--
``(I) for fiscal year 2009 is equal to 102.5
percent of the DSH allotment that would be determined
under this paragraph for the State for fiscal year 2009
without application of this subparagraph,
notwithstanding subparagraphs (B) and (C);
``(II) for fiscal year 2010 is equal to 102.5
percent of the DSH allotment for the State for fiscal
year 2009, as determined under subclause (I); and
``(III) for each succeeding fiscal year is equal to
the DSH allotment for the State under this paragraph
determined without applying subclauses (I) and (II).
``(ii) Application.--Clause (i) shall not apply to a
State for a year in the case that the DSH allotment for
such State for such year under this paragraph determined
without applying clause (i) would grow higher than the DSH
allotment specified under clause (i) for the State for such
year.''.
SEC. 5003. EXTENSION OF MORATORIA ON CERTAIN MEDICAID FINAL
REGULATIONS.
(a) Final Regulations Relating to Optional Case Management Services
and Allowable Provider Taxes.--Section 7001(a)(3)(A) of the
Supplemental Appropriations Act, 2008 (Public Law 110-252) is amended
by striking ``April 1, 2009'' and inserting ``July 1, 2009''.
(b) Final Regulation Relating to School-Based Administration and
School-Based Transportation.--Section 206 of the Medicare, Medicaid,
and SCHIP Extension Act of 2007 (Public Law 110-173), as amended by
section 7001(a)(2) of the Supplemental Appropriations Act, 2008 (Public
Law 110-252), is amended by inserting ``(July 1, 2009, in the case of
the final regulation relating to school-based administration and
school-based transportation)'' after ``April 1, 2009,''.
(c) Final Regulation Relating to Outpatient Hospital Facility
Services.--Notwithstanding any other provision of law, with respect to
expenditures for services furnished during the period beginning on
December 8, 2008, and ending on June 30, 2009, the Secretary of Health
and Human Services shall not take any action (through promulgation of
regulation, issuance of regulatory guidance, use of Federal payment
audit procedures, or other administrative action, policy, or practice,
including a Medical Assistance Manual transmittal or letter to State
Medicaid directors) to implement the final regulation relating to
clarification of the definition of outpatient hospital facility
services under the Medicaid program published on November 7, 2008 (73
Federal Register 66187).
(d) Sense of Congress.--It is the sense of Congress that the
Secretary of Health and Human Services should not promulgate as final
regulations any of the following proposed Medicaid regulations:
(1) Cost limits for certain providers.--The proposed regulation
published on January 18, 2007, (72 Federal Register 2236) (and the
purported final regulation published on May 29, 2007 (72 Federal
Register 29748) and determined by the United States District Court
for the District of Columbia to have been ``improperly
promulgated'', Alameda County Medical Center, et al., v. Leavitt,
et al., Civil Action No. 08-0422, Mem. at 4 (D.D.C. May 23, 2008)).
(2) Payments for graduate medical education.--The proposed
regulation published on May 23, 2007 (72 Federal Register 28930).
(3) Rehabilitative services.--The proposed regulation published
on August 13, 2007 (72 Federal Register 45201).
SEC. 5004. EXTENSION OF TRANSITIONAL MEDICAL ASSISTANCE (TMA).
(a) 18-Month Extension.--
(1) In general.--Sections 1902(e)(1)(B) and 1925(f) of the
Social Security Act (42 U.S.C. 1396a(e)(1)(B), 1396r-6(f)) are each
amended by striking ``September 30, 2003'' and inserting ``December
31, 2010''.
(2) Effective date.--The amendments made by this subsection
shall take effect on July 1, 2009.
(b) State Option of Initial 12-Month Eligibility.--Section 1925 of
the Social Security Act (42 U.S.C. 1396r-6) is amended--
(1) in subsection (a)(1), by inserting ``but subject to
paragraph (5)'' after ``Notwithstanding any other provision of this
title'';
(2) by adding at the end of subsection (a) the following:
``(5) Option of 12-month initial eligibility period.--A State
may elect to treat any reference in this subsection to a 6-month
period (or 6 months) as a reference to a 12-month period (or 12
months). In the case of such an election, subsection (b) shall not
apply.''; and
(3) in subsection (b)(1), by inserting ``but subject to
subsection (a)(5)'' after ``Notwithstanding any other provision of
this title''.
(c) Removal of Requirement for Previous Receipt of Medical
Assistance.--Section 1925(a)(1) of such Act (42 U.S.C. 1396r-6(a)(1)),
as amended by subsection (b)(1), is further amended--
(1) by inserting ``subparagraph (B) and'' before ``paragraph
(5)'';
(2) by redesignating the matter after ``Requirement.--'' as a
subparagraph (A) with the heading ``In general.--'' and with the
same indentation as subparagraph (B) (as added by paragraph (3));
and
(3) by adding at the end the following:
``(B) State option to waive requirement for 3 months before
receipt of medical assistance.--A State may, at its option,
elect also to apply subparagraph (A) in the case of a family
that was receiving such aid for fewer than three months or that
had applied for and was eligible for such aid for fewer than 3
months during the 6 immediately preceding months described in
such subparagraph.''.
(d) CMS Report on Enrollment and Participation Rates Under TMA.--
Section 1925 of such Act (42 U.S.C. 1396r-6), as amended by this
section, is further amended by adding at the end the following new
subsection:
``(g) Collection and Reporting of Participation Information.--
``(1) Collection of information from states.--Each State shall
collect and submit to the Secretary (and make publicly available),
in a format specified by the Secretary, information on average
monthly enrollment and average monthly participation rates for
adults and children under this section and of the number and
percentage of children who become ineligible for medical assistance
under this section whose medical assistance is continued under
another eligibility category or who are enrolled under the State's
child health plan under title XXI. Such information shall be
submitted at the same time and frequency in which other enrollment
information under this title is submitted to the Secretary.
``(2) Annual reports to congress.--Using the information
submitted under paragraph (1), the Secretary shall submit to
Congress annual reports concerning enrollment and participation
rates described in such paragraph.''.
(e) Effective Date.--The amendments made by subsections (b) through
(d) shall take effect on July 1, 2009.
SEC. 5005. EXTENSION OF THE QUALIFYING INDIVIDUAL (QI) PROGRAM.
(a) Extension.--Section 1902(a)(10)(E)(iv) of the Social Security
Act (42 U.S.C. 1396a(a)(10)(E)(iv)) is amended by striking ``December
2009'' and inserting ``December 2010''.
(b) Extending Total Amount Available for Allocation.--Section
1933(g) of such Act (42 U.S.C. 1396u-3(g)) is amended--
(1) in paragraph (2)--
(A) by striking ``and'' at the end of subparagraph (K);
(B) in subparagraph (L), by striking the period at the end
and inserting a semicolon; and
(C) by adding at the end the following new subparagraphs:
``(M) for the period that begins on January 1, 2010, and
ends on September 30, 2010, the total allocation amount is
$412,500,000; and
``(N) for the period that begins on October 1, 2010, and
ends on December 31, 2010, the total allocation amount is
$150,000,000.''; and
(2) in paragraph (3), in the matter preceding subparagraph (A),
by striking ``or (L)'' and inserting ``(L), or (N)''.
SEC. 5006. PROTECTIONS FOR INDIANS UNDER MEDICAID AND CHIP.
(a) Premiums and Cost Sharing Protection Under Medicaid.--
(1) In general.--Section 1916 of the Social Security Act (42
U.S.C. 1396o) is amended--
(A) in subsection (a), in the matter preceding paragraph
(1), by striking ``and (i)'' and inserting ``, (i), and (j)'';
and
(B) by adding at the end the following new subsection:
``(j) No Premiums or Cost Sharing for Indians Furnished Items or
Services Directly by Indian Health Programs or Through Referral Under
Contract Health Services.--
``(1) No cost sharing for items or services furnished to
indians through indian health programs.--
``(A) In general.--No enrollment fee, premium, or similar
charge, and no deduction, copayment, cost sharing, or similar
charge shall be imposed against an Indian who is furnished an
item or service directly by the Indian Health Service, an
Indian Tribe, Tribal Organization, or Urban Indian Organization
or through referral under contract health services for which
payment may be made under this title.
``(B) No reduction in amount of payment to indian health
providers.--Payment due under this title to the Indian Health
Service, an Indian Tribe, Tribal Organization, or Urban Indian
Organization, or a health care provider through referral under
contract health services for the furnishing of an item or
service to an Indian who is eligible for assistance under such
title, may not be reduced by the amount of any enrollment fee,
premium, or similar charge, or any deduction, copayment, cost
sharing, or similar charge that would be due from the Indian
but for the operation of subparagraph (A).
``(2) Rule of construction.--Nothing in this subsection shall
be construed as restricting the application of any other
limitations on the imposition of premiums or cost sharing that may
apply to an individual receiving medical assistance under this
title who is an Indian.''.
(2) Conforming amendment.--Section 1916A(b)(3) of such Act (42
U.S.C. 1396o-1(b)(3)) is amended--
(A) in subparagraph (A), by adding at the end the following
new clause:
``(vii) An Indian who is furnished an item or service
directly by the Indian Health Service, an Indian Tribe,
Tribal Organization or Urban Indian Organization or through
referral under contract health services.''; and
(B) in subparagraph (B), by adding at the end the following
new clause:
``(x) Items and services furnished to an Indian
directly by the Indian Health Service, an Indian Tribe,
Tribal Organization or Urban Indian Organization or through
referral under contract health services.''.
(b) Treatment of Certain Property From Resources for Medicaid and
CHIP Eligibility.--
(1) Medicaid.--Section 1902 of the Social Security Act (42
U.S.C. 1396a), as amended by sections 203(c) and 211(a)(1)(A)(ii)
of the Children's Health Insurance Program Reauthorization Act of
2009 (Public Law 111-3), is amended by adding at the end the
following new subsection:
``(ff) Notwithstanding any other requirement of this title or any
other provision of Federal or State law, a State shall disregard the
following property from resources for purposes of determining the
eligibility of an individual who is an Indian for medical assistance
under this title:
``(1) Property, including real property and improvements, that
is held in trust, subject to Federal restrictions, or otherwise
under the supervision of the Secretary of the Interior, located on
a reservation, including any federally recognized Indian Tribe's
reservation, pueblo, or colony, including former reservations in
Oklahoma, Alaska Native regions established by the Alaska Native
Claims Settlement Act, and Indian allotments on or near a
reservation as designated and approved by the Bureau of Indian
Affairs of the Department of the Interior.
``(2) For any federally recognized Tribe not described in
paragraph (1), property located within the most recent boundaries
of a prior Federal reservation.
``(3) Ownership interests in rents, leases, royalties, or usage
rights related to natural resources (including extraction of
natural resources or harvesting of timber, other plants and plant
products, animals, fish, and shellfish) resulting from the exercise
of federally protected rights.
``(4) Ownership interests in or usage rights to items not
covered by paragraphs (1) through (3) that have unique religious,
spiritual, traditional, or cultural significance or rights that
support subsistence or a traditional lifestyle according to
applicable tribal law or custom.''.
(2) Application to chip.--Section 2107(e)(1) of such Act (42
U.S.C. 1397gg(e)(1)), as amended by sections 203(a)(2), 203(d)(2),
214(b), 501(d)(2), and 503(a)(1) of the Children's Health Insurance
Program Reauthorization Act of 2009 (Public Law 111-3), is
amended--
(A) by redesignating subparagraphs (C) through (I), as
subparagraphs (D) through (J), respectively; and
(B) by inserting after subparagraph (B), the following new
subparagraph:
``(C) Section 1902(ff) (relating to disregard of certain
property for purposes of making eligibility determinations).''.
(c) Continuation of Current Law Protections of Certain Indian
Property From Medicaid Estate Recovery.--Section 1917(b)(3) of the
Social Security Act (42 U.S.C. 1396p(b)(3)) is amended--
(1) by inserting ``(A)'' after ``(3)''; and
(2) by adding at the end the following new subparagraph:
``(B) The standards specified by the Secretary under
subparagraph (A) shall require that the procedures established
by the State agency under subparagraph (A) exempt income,
resources, and property that are exempt from the application of
this subsection as of April 1, 2003, under manual instructions
issued to carry out this subsection (as in effect on such date)
because of the Federal responsibility for Indian Tribes and
Alaska Native Villages. Nothing in this subparagraph shall be
construed as preventing the Secretary from providing additional
estate recovery exemptions under this title for Indians.''.
(d) Rules Applicable Under Medicaid and Chip to Managed Care
Entities With Respect to Indian Enrollees and Indian Health Care
Providers and Indian Managed Care Entities.--
(1) In general.--Section 1932 of the Social Security Act (42
U.S.C. 1396u-2) is amended by adding at the end the following new
subsection:
``(h) Special Rules With Respect to Indian Enrollees, Indian Health
Care Providers, and Indian Managed Care Entities.--
``(1) Enrollee option to select an indian health care provider
as primary care provider.--In the case of a non-Indian Medicaid
managed care entity that--
``(A) has an Indian enrolled with the entity; and
``(B) has an Indian health care provider that is
participating as a primary care provider within the network of
the entity,
insofar as the Indian is otherwise eligible to receive services
from such Indian health care provider and the Indian health care
provider has the capacity to provide primary care services to such
Indian, the contract with the entity under section 1903(m) or under
section 1905(t)(3) shall require, as a condition of receiving
payment under such contract, that the Indian shall be allowed to
choose such Indian health care provider as the Indian's primary
care provider under the entity.
``(2) Assurance of payment to indian health care providers for
provision of covered services.--Each contract with a managed care
entity under section 1903(m) or under section 1905(t)(3) shall
require any such entity, as a condition of receiving payment under
such contract, to satisfy the following requirements:
``(A) Demonstration of access to indian health care
providers and application of alternative payment
arrangements.--Subject to subparagraph (C), to--
``(i) demonstrate that the number of Indian health care
providers that are participating providers with respect to
such entity are sufficient to ensure timely access to
covered Medicaid managed care services for those Indian
enrollees who are eligible to receive services from such
providers; and
``(ii) agree to pay Indian health care providers,
whether such providers are participating or
nonparticipating providers with respect to the entity, for
covered Medicaid managed care services provided to those
Indian enrollees who are eligible to receive services from
such providers at a rate equal to the rate negotiated
between such entity and the provider involved or, if such a
rate has not been negotiated, at a rate that is not less
than the level and amount of payment which the entity would
make for the services if the services were furnished by a
participating provider which is not an Indian health care
provider.
The Secretary shall establish procedures for applying the
requirements of clause (i) in States where there are no or few
Indian health providers.
``(B) Prompt payment.--To agree to make prompt payment
(consistent with rule for prompt payment of providers under
section 1932(f)) to Indian health care providers that are
participating providers with respect to such entity or, in the
case of an entity to which subparagraph (A)(ii) or (C) applies,
that the entity is required to pay in accordance with that
subparagraph.
``(C) Application of special payment requirements for
federally-qualified health centers and for services provided by
certain indian health care providers.--
``(i) Federally-qualified health centers.--
``(I) Managed care entity payment requirement.--To
agree to pay any Indian health care provider that is a
federally-qualified health center under this title but
not a participating provider with respect to the
entity, for the provision of covered Medicaid managed
care services by such provider to an Indian enrollee of
the entity at a rate equal to the amount of payment
that the entity would pay a federally-qualified health
center that is a participating provider with respect to
the entity but is not an Indian health care provider
for such services.
``(II) Continued application of state requirement
to make supplemental payment.--Nothing in subclause (I)
or subparagraph (A) or (B) shall be construed as
waiving the application of section 1902(bb)(5)
regarding the State plan requirement to make any
supplemental payment due under such section to a
federally-qualified health center for services
furnished by such center to an enrollee of a managed
care entity (regardless of whether the federally-
qualified health center is or is not a participating
provider with the entity).
``(ii) Payment rate for services provided by certain
indian health care providers.--If the amount paid by a
managed care entity to an Indian health care provider that
is not a federally-qualified health center for services
provided by the provider to an Indian enrollee with the
managed care entity is less than the rate that applies to
the provision of such services by the provider under the
State plan, the plan shall provide for payment to the
Indian health care provider, whether the provider is a
participating or nonparticipating provider with respect to
the entity, of the difference between such applicable rate
and the amount paid by the managed care entity to the
provider for such services.
``(D) Construction.--Nothing in this paragraph shall be
construed as waiving the application of section 1902(a)(30)(A)
(relating to application of standards to assure that payments
are consistent with efficiency, economy, and quality of care).
``(3) Special rule for enrollment for indian managed care
entities.--Regarding the application of a Medicaid managed care
program to Indian Medicaid managed care entities, an Indian
Medicaid managed care entity may restrict enrollment under such
program to Indians in the same manner as Indian Health Programs may
restrict the delivery of services to Indians.
``(4) Definitions.--For purposes of this subsection:
``(A) Indian health care provider.--The term `Indian health
care provider' means an Indian Health Program or an Urban
Indian Organization.
``(B) Indian medicaid managed care entity.--The term
`Indian Medicaid managed care entity' means a managed care
entity that is controlled (within the meaning of the last
sentence of section 1903(m)(1)(C)) by the Indian Health
Service, a Tribe, Tribal Organization, or Urban Indian
Organization, or a consortium, which may be composed of 1 or
more Tribes, Tribal Organizations, or Urban Indian
Organizations, and which also may include the Service.
``(C) Non-indian medicaid managed care entity.--The term
`non-Indian Medicaid managed care entity' means a managed care
entity that is not an Indian Medicaid managed care entity.
``(D) Covered medicaid managed care services.--The term
`covered Medicaid managed care services' means, with respect to
an individual enrolled with a managed care entity, items and
services for which benefits are available with respect to the
individual under the contract between the entity and the State
involved.
``(E) Medicaid managed care program.--The term `Medicaid
managed care program' means a program under sections 1903(m),
1905(t), and 1932 and includes a managed care program operating
under a waiver under section 1915(b) or 1115 or otherwise.''.
(2) Application to chip.--Section 2107(e)(1) of such Act (42
U.S.C. 1397gg(1)), as amended by subsection (b)(2), is amended--
(A) by redesignating subparagraph (J) as subparagraph (K);
and
(B) by inserting after subparagraph (I) the following new
subparagraph:
``(J) Subsections (a)(2)(C) and (h) of section 1932.''.
(e) Consultation on Medicaid, Chip, and Other Health Care Programs
Funded Under the Social Security Act Involving Indian Health Programs
and Urban Indian Organizations.--
(1) Consultation with tribal technical advisory group (ttag).--
The Secretary of Health and Human Services shall maintain within
the Centers for Medicaid & Medicare Services (CMS) a Tribal
Technical Advisory Group (TTAG), which was first established in
accordance with requirements of the charter dated September 30,
2003, and the Secretary of Health and Human Services shall include
in such Group a representative of a national urban Indian health
organization and a representative of the Indian Health Service. The
inclusion of a representative of a national urban Indian health
organization in such Group shall not affect the nonapplication of
the Federal Advisory Committee Act (5 U.S.C. App.) to such Group.
(2) Solicitation of advice under medicaid and chip.--
(A) Medicaid state plan amendment.--Section 1902(a) of the
Social Security Act (42 U.S.C. 1396a(a)), as amended by section
501(d)(1) of the Children's Health Insurance Program
Reauthorization Act of 2009 (Public Law 111-3), (42 U.S.C.
1396a(a)) is amended--
(i) in paragraph (71), by striking ``and'' at the end;
(ii) in paragraph (72), by striking the period at the
end and inserting ``; and''; and
(iii) by inserting after paragraph (72), the following
new paragraph:
``(73) in the case of any State in which 1 or more Indian
Health Programs or Urban Indian Organizations furnishes health care
services, provide for a process under which the State seeks advice
on a regular, ongoing basis from designees of such Indian Health
Programs and Urban Indian Organizations on matters relating to the
application of this title that are likely to have a direct effect
on such Indian Health Programs and Urban Indian Organizations and
that--
``(A) shall include solicitation of advice prior to
submission of any plan amendments, waiver requests, and
proposals for demonstration projects likely to have a direct
effect on Indians, Indian Health Programs, or Urban Indian
Organizations; and
``(B) may include appointment of an advisory committee and
of a designee of such Indian Health Programs and Urban Indian
Organizations to the medical care advisory committee advising
the State on its State plan under this title.''.
(B) Application to chip.--Section 2107(e)(1) of such Act
(42 U.S.C. 1397gg(1)), as amended by subsections (b)(2) and (d)
(2), is amended--
(i) by redesignating subparagraphs (B), (C), (D), (E),
(F), (G), (H), (I), (J), and (K) as subparagraphs (D), (F),
(B), (E), (G), (I), (H), (J), (K), and (L), respectively;
(ii) by moving such subparagraphs so as to appear in
alphabetical order; and
(iii) by inserting after subparagraph (B) (as so
redesiganted and moved) the following new subparagraph:
``(C) Section 1902(a)(73) (relating to requiring certain
States to seek advice from designees of Indian Health Programs
and Urban Indian Organizations).''.
(3) Rule of construction.--Nothing in the amendments made by
this subsection shall be construed as superseding existing advisory
committees, working groups, guidance, or other advisory procedures
established by the Secretary of Health and Human Services or by any
State with respect to the provision of health care to Indians.
(f) Effective Date.--The amendments made by this section shall take
effect on July 1, 2009.
SEC. 5007. FUNDING FOR OVERSIGHT AND IMPLEMENTATION.
(a) Oversight.--For purposes of ensuring the proper expenditure of
Federal funds under title XIX of the Social Security Act (42 U.S.C.
1396 et seq.), there is appropriated to the Office of the Inspector
General of the Department of Health and Human Services, out of any
money in the Treasury not otherwise appropriated and without further
appropriation, $31,250,000 for fiscal year 2009, which shall remain
available for expenditure until September 30, 2011, and shall be in
addition to any other amounts appropriated or made available to such
Office for such purposes.
(b) Implementation of Increased FMAP.--For purposes of carrying out
section 5001, there is appropriated to the Secretary of Health and
Human Services, out of any money in the Treasury not otherwise
appropriated and without further appropriation, $5,000,000 for fiscal
year 2009, which shall remain available for expenditure until September
30, 2011, and shall be in addition to any other amounts appropriated or
made available to such Secretary for such purposes.
SEC. 5008. GAO STUDY AND REPORT REGARDING STATE NEEDS DURING PERIODS OF
NATIONAL ECONOMIC DOWNTURN.
(a) In General.--The Comptroller General of the United States shall
study the period of national economic downturn in effect on the date of
enactment of this Act, as well as previous periods of national economic
downturn since 1974, for the purpose of developing recommendations for
addressing the needs of States during such periods. As part of such
analysis, the Comptroller General shall study the past and projected
effects of temporary increases in the Federal medical assistance
percentage under the Medicaid program with respect to such periods.
(b) Report.--Not later than April 1, 2011, the Comptroller General
of the United States shall submit a report to the appropriate
committees of Congress on the results of the study conducted under
paragraph (1). Such report shall include the following:
(1) Such recommendations as the Comptroller General determines
appropriate for modifying the national economic downturn assistance
formula for temporary adjustment of the Federal medical assistance
percentage under Medicaid (also referred to as a ``countercyclical
FMAP'') described in GAO report number GAO-07-97 to improve the
effectiveness of the application of such percentage in addressing
the needs of States during periods of national economic downturn,
including recommendations for--
(A) improvements to the factors that would begin and end
the application of such percentage;
(B) how the determination of the amount of such percentage
could be adjusted to address State and regional economic
variations during such periods; and
(C) how the determination of the amount of such percentage
could be adjusted to be more responsive to actual Medicaid
costs incurred by States during such periods.
(2) An analysis of the impact on States during such periods
of--
(A) declines in private health benefits coverage;
(B) declines in State revenues; and
(C) caseload maintenance and growth under Medicaid, the
Children's Health Insurance Program, or any other publicly-
funded programs to provide health benefits coverage for State
residents.
(3) Identification of, and recommendations for addressing, the
effects on States of any other specific economic indicators that
the Comptroller General determines appropriate.
TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM
SEC. 6000. TABLE OF CONTENTS.
The table of contents of this title is as follows:
TITLE VI--BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM
Sec. 6000. Table of contents.
Sec. 6001. Broadband Technology Opportunities Program.
SEC. 6001. BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM.
(a) The Assistant Secretary of Commerce for Communications and
Information (Assistant Secretary), in consultation with the Federal
Communications Commission (Commission), shall establish a national
broadband service development and expansion program in conjunction with
the technology opportunities program, which shall be referred to as the
Broadband Technology Opportunities Program. The Assistant Secretary
shall ensure that the program complements and enhances and does not
conflict with other Federal broadband initiatives and programs.
(b) The purposes of the program are to--
(1) provide access to broadband service to consumers residing
in unserved areas of the United States;
(2) provide improved access to broadband service to consumers
residing in underserved areas of the United States;
(3) provide broadband education, awareness, training, access,
equipment, and support to--
(A) schools, libraries, medical and healthcare providers,
community colleges and other institutions of higher education,
and other community support organizations and entities to
facilitate greater use of broadband service by or through these
organizations;
(B) organizations and agencies that provide outreach,
access, equipment, and support services to facilitate greater
use of broadband service by low-income, unemployed, aged, and
otherwise vulnerable populations; and
(C) job-creating strategic facilities located within a
State-designated economic zone, Economic Development District
designated by the Department of Commerce, Renewal Community or
Empowerment Zone designated by the Department of Housing and
Urban Development, or Enterprise Community designated by the
Department of Agriculture;
(4) improve access to, and use of, broadband service by public
safety agencies; and
(5) stimulate the demand for broadband, economic growth, and
job creation.
(c) The Assistant Secretary may consult a State, the District of
Columbia, or territory or possession of the United States with respect
to--
(1) the identification of areas described in subsection (b)(1)
or (2) located in that State; and
(2) the allocation of grant funds within that State for
projects in or affecting the State.
(d) The Assistant Secretary shall--
(1) establish and implement the grant program as expeditiously
as practicable;
(2) ensure that all awards are made before the end of fiscal
year 2010;
(3) seek such assurances as may be necessary or appropriate
from grantees under the program that they will substantially
complete projects supported by the program in accordance with
project timelines, not to exceed 2 years following an award; and
(4) report on the status of the program to the Committees on
Appropriations of the House of Representatives and the Senate, the
Committee on Energy and Commerce of the House of Representatives,
and the Committee on Commerce, Science, and Transportation of the
Senate, every 90 days.
(e) To be eligible for a grant under the program, an applicant
shall--
(1)(A) be a State or political subdivision thereof, the
District of Columbia, a territory or possession of the United
States, an Indian tribe (as defined in section 4 of the Indian
Self-Determination and Education Assistance Act (25 U.S.C. 450(b))
or native Hawaiian organization;
(B) a nonprofit--
(i) foundation,
(ii) corporation,
(iii) institution, or
(iv) association; or
(C) any other entity, including a broadband service or
infrastructure provider, that the Assistant Secretary finds by
rule to be in the public interest. In establishing such rule,
the Assistant Secretary shall to the extent practicable promote
the purposes of this section in a technologically neutral
manner;
(2) submit an application, at such time, in such form, and
containing such information as the Assistant Secretary may require;
(3) provide a detailed explanation of how any amount received
under the program will be used to carry out the purposes of this
section in an efficient and expeditious manner, including a showing
that the project would not have been implemented during the grant
period without Federal grant assistance;
(4) demonstrate, to the satisfaction of the Assistant
Secretary, that it is capable of carrying out the project or
function to which the application relates in a competent manner in
compliance with all applicable Federal, State, and local laws;
(5) demonstrate, to the satisfaction of the Assistant
Secretary, that it will appropriate (if the applicant is a State or
local government agency) or otherwise unconditionally obligate,
from non-Federal sources, funds required to meet the requirements
of subsection (f);
(6) disclose to the Assistant Secretary the source and amount
of other Federal or State funding sources from which the applicant
receives, or has applied for, funding for activities or projects to
which the application relates; and
(7) provide such assurances and procedures as the Assistant
Secretary may require to ensure that grant funds are used and
accounted for in an appropriate manner.
(f) The Federal share of any project may not exceed 80 percent,
except that the Assistant Secretary may increase the Federal share of a
project above 80 percent if--
(1) the applicant petitions the Assistant Secretary for a
waiver; and
(2) the Assistant Secretary determines that the petition
demonstrates financial need.
(g) The Assistant Secretary may make competitive grants under the
program to--
(1) acquire equipment, instrumentation, networking capability,
hardware and software, digital network technology, and
infrastructure for broadband services;
(2) construct and deploy broadband service related
infrastructure;
(3) ensure access to broadband service by community anchor
institutions;
(4) facilitate access to broadband service by low-income,
unemployed, aged, and otherwise vulnerable populations in order to
provide educational and employment opportunities to members of such
populations;
(5) construct and deploy broadband facilities that improve
public safety broadband communications services; and
(6) undertake such other projects and activities as the
Assistant Secretary finds to be consistent with the purposes for
which the program is established.
(h) The Assistant Secretary, in awarding grants under this section,
shall, to the extent practical--
(1) award not less than 1 grant in each State;
(2) consider whether an application to deploy infrastructure in
an area--
(A) will, if approved, increase the affordability of, and
subscribership to, service to the greatest population of users
in the area;
(B) will, if approved, provide the greatest broadband speed
possible to the greatest population of users in the area;
(C) will, if approved, enhance service for health care
delivery, education, or children to the greatest population of
users in the area; and
(D) will, if approved, not result in unjust enrichment as a
result of support for non-recurring costs through another
Federal program for service in the area; and
(3) consider whether the applicant is a socially and
economically disadvantaged small business concern as defined under
section 8(a) of the Small Business Act (15 U.S.C. 637).
(i) The Assistant Secretary--
(1) shall require any entity receiving a grant pursuant to this
section to report quarterly, in a format specified by the Assistant
Secretary, on such entity's use of the assistance and progress
fulfilling the objectives for which such funds were granted, and
the Assistant Secretary shall make these reports available to the
public;
(2) may establish additional reporting and information
requirements for any recipient of any assistance made available
pursuant to this section;
(3) shall establish appropriate mechanisms to ensure
appropriate use and compliance with all terms of any use of funds
made available pursuant to this section;
(4) may, in addition to other authority under applicable law,
deobligate awards to grantees that demonstrate an insufficient
level of performance, or wasteful or fraudulent spending, as
defined in advance by the Assistant Secretary, and award these
funds competitively to new or existing applicants consistent with
this section; and
(5) shall create and maintain a fully searchable database,
accessible on the Internet at no cost to the public, that contains
at least a list of each entity that has applied for a grant under
this section, a description of each application, the status of each
such application, the name of each entity receiving funds made
available pursuant to this section, the purpose for which such
entity is receiving such funds, each quarterly report submitted by
the entity pursuant to this section, and such other information
sufficient to allow the public to understand and monitor grants
awarded under the program.
(j) Concurrent with the issuance of the Request for Proposal for
grant applications pursuant to this section, the Assistant Secretary
shall, in coordination with the Commission, publish the non-
discrimination and network interconnection obligations that shall be
contractual conditions of grants awarded under this section, including,
at a minimum, adherence to the principles contained in the Commission's
broadband policy statement (FCC 05-15, adopted August 5, 2005).
(k)(1) Not later than 1 year after the date of enactment of this
section, the Commission shall submit to the Committee on Energy and
Commerce of the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate, a report containing a
national broadband plan.
(2) The national broadband plan required by this section shall
seek to ensure that all people of the United States have access to
broadband capability and shall establish benchmarks for meeting
that goal. The plan shall also include--
(A) an analysis of the most effective and efficient
mechanisms for ensuring broadband access by all people of the
United States;
(B) a detailed strategy for achieving affordability of such
service and maximum utilization of broadband infrastructure and
service by the public;
(C) an evaluation of the status of deployment of broadband
service, including progress of projects supported by the grants
made pursuant to this section; and
(D) a plan for use of broadband infrastructure and services
in advancing consumer welfare, civic participation, public
safety and homeland security, community development, health
care delivery, energy independence and efficiency, education,
worker training, private sector investment, entrepreneurial
activity, job creation and economic growth, and other national
purposes.
(3) In developing the plan, the Commission shall have access to
data provided to other Government agencies under the Broadband Data
Improvement Act (47 U.S.C. 1301 note).
(l) The Assistant Secretary shall develop and maintain a
comprehensive nationwide inventory map of existing broadband service
capability and availability in the United States that depicts the
geographic extent to which broadband service capability is deployed and
available from a commercial provider or public provider throughout each
State. Not later than 2 years after the date of the enactment of this
Act, the Assistant Secretary shall make the broadband inventory map
developed and maintained pursuant to this section accessible by the
public on a World Wide Web site of the National Telecommunications and
Information Administration in a form that is interactive and
searchable.
(m) The Assistant Secretary shall have the authority to prescribe
such rules as are necessary to carry out the purposes of this section.
TITLE VII--LIMITS ON EXECUTIVE COMPENSATION
SEC. 7000. TABLE OF CONTENTS.
The table of contents of this title is as follows:
TITLE VII--LIMITS ON EXECUTIVE COMPENSATION
Sec. 7000. Table of contents.
Sec. 7001. Executive compensation and corporate governance.
Sec. 7002. Applicability with respect to loan modifications.
SEC. 7001. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.
Section 111 of the Emergency Economic Stabilization Act of 2008 (12
U.S.C. 5221) is amended to read as follows:
``SEC. 111. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.
``(a) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Senior executive officer.--The term `senior executive
officer' means an individual who is 1 of the top 5 most highly paid
executives of a public company, whose compensation is required to
be disclosed pursuant to the Securities Exchange Act of 1934, and
any regulations issued thereunder, and non-public company
counterparts.
``(2) Golden parachute payment.--The term `golden parachute
payment' means any payment to a senior executive officer for
departure from a company for any reason, except for payments for
services performed or benefits accrued.
``(3) TARP recipient.--The term `TARP recipient' means any
entity that has received or will receive financial assistance under
the financial assistance provided under the TARP.
``(4) Commission.--The term `Commission' means the Securities
and Exchange Commission.
``(5) Period in which obligation is outstanding; rule of
construction.--For purposes of this section, the period in which
any obligation arising from financial assistance provided under the
TARP remains outstanding does not include any period during which
the Federal Government only holds warrants to purchase common stock
of the TARP recipient.
``(b) Executive Compensation and Corporate Governance.--
``(1) Establishment of standards.--During the period in which
any obligation arising from financial assistance provided under the
TARP remains outstanding, each TARP recipient shall be subject to--
``(A) the standards established by the Secretary under this
section; and
``(B) the provisions of section 162(m)(5) of the Internal
Revenue Code of 1986, as applicable.
``(2) Standards required.--The Secretary shall require each
TARP recipient to meet appropriate standards for executive
compensation and corporate governance.
``(3) Specific requirements.--The standards established under
paragraph (2) shall include the following:
``(A) Limits on compensation that exclude incentives for
senior executive officers of the TARP recipient to take
unnecessary and excessive risks that threaten the value of such
recipient during the period in which any obligation arising
from financial assistance provided under the TARP remains
outstanding.
``(B) A provision for the recovery by such TARP recipient
of any bonus, retention award, or incentive compensation paid
to a senior executive officer and any of the next 20 most
highly-compensated employees of the TARP recipient based on
statements of earnings, revenues, gains, or other criteria that
are later found to be materially inaccurate.
``(C) A prohibition on such TARP recipient making any
golden parachute payment to a senior executive officer or any
of the next 5 most highly-compensated employees of the TARP
recipient during the period in which any obligation arising
from financial assistance provided under the TARP remains
outstanding.
``(D)(i) A prohibition on such TARP recipient paying or
accruing any bonus, retention award, or incentive compensation
during the period in which any obligation arising from
financial assistance provided under the TARP remains
outstanding, except that any prohibition developed under this
paragraph shall not apply to the payment of long-term
restricted stock by such TARP recipient, provided that such
long-term restricted stock--
``(I) does not fully vest during the period in which
any obligation arising from financial assistance provided
to that TARP recipient remains outstanding;
``(II) has a value in an amount that is not greater
than \1/3\ of the total amount of annual compensation of
the employee receiving the stock; and
``(III) is subject to such other terms and conditions
as the Secretary may determine is in the public interest.
``(ii) The prohibition required under clause (i) shall
apply as follows:
``(I) For any financial institution that received
financial assistance provided under the TARP equal to less
than $25,000,000, the prohibition shall apply only to the
most highly compensated employee of the financial
institution.
``(II) For any financial institution that received
financial assistance provided under the TARP equal to at
least $25,000,000, but less than $250,000,000, the
prohibition shall apply to at least the 5 most highly-
compensated employees of the financial institution, or such
higher number as the Secretary may determine is in the
public interest with respect to any TARP recipient.
``(III) For any financial institution that received
financial assistance provided under the TARP equal to at
least$250,000,000, but less than $500,000,000, the
prohibition shall apply to the senior executive officers
and at least the 10 next most highly-compensated employees,
or such higher number as the Secretary may determine is in
the public interest with respect to any TARP recipient.
``(IV) For any financial institution that received
financial assistance provided under the TARP equal to
$500,000,000 or more, the prohibition shall apply to the
senior executive officers and at least the 20 next most
highly-compensated employees, or such higher number as the
Secretary may determine is in the public interest with
respect to any TARP recipient.
``(iii) The prohibition required under clause (i) shall not
be construed to prohibit any bonus payment required to be paid
pursuant to a written employment contract executed on or before
February 11, 2009, as such valid employment contracts are
determined by the Secretary or the designee of the Secretary.
``(E) A prohibition on any compensation plan that would
encourage manipulation of the reported earnings of such TARP
recipient to enhance the compensation of any of its employees.
``(F) A requirement for the establishment of a Board
Compensation Committee that meets the requirements of
subsection (c).
``(4) Certification of compliance.--The chief executive officer
and chief financial officer (or the equivalents thereof) of each
TARP recipient shall provide a written certification of compliance
by the TARP recipient with the requirements of this section--
``(A) in the case of a TARP recipient, the securities of
which are publicly traded, to the Securities and Exchange
Commission, together with annual filings required under the
securities laws; and
``(B) in the case of a TARP recipient that is not a
publicly traded company, to the Secretary.
``(c) Board Compensation Committee.--
``(1) Establishment of board required.--Each TARP recipient
shall establish a Board Compensation Committee, comprised entirely
of independent directors, for the purpose of reviewing employee
compensation plans.
``(2) Meetings.--The Board Compensation Committee of each TARP
recipient shall meet at least semiannually to discuss and evaluate
employee compensation plans in light of an assessment of any risk
posed to the TARP recipient from such plans.
``(3) Compliance by non-sec registrants.--In the case of any
TARP recipient, the common or preferred stock of which is not
registered pursuant to the Securities Exchange Act of 1934, and
that has received $25,000,000 or less of TARP assistance, the
duties of the Board Compensation Committee under this subsection
shall be carried out by the board of directors of such TARP
recipient.
``(d) Limitation on Luxury Expenditures.--The board of directors of
any TARP recipient shall have in place a company-wide policy regarding
excessive or luxury expenditures, as identified by the Secretary, which
may include excessive expenditures on--
``(1) entertainment or events;
``(2) office and facility renovations;
``(3) aviation or other transportation services; or
``(4) other activities or events that are not reasonable
expenditures for staff development, reasonable performance
incentives, or other similar measures conducted in the normal
course of the business operations of the TARP recipient.
``(e) Shareholder Approval of Executive Compensation.--
``(1) Annual shareholder approval of executive compensation.--
Any proxy or consent or authorization for an annual or other
meeting of the shareholders of any TARP recipient during the period
in which any obligation arising from financial assistance provided
under the TARP remains outstanding shall permit a separate
shareholder vote to approve the compensation of executives, as
disclosed pursuant to the compensation disclosure rules of the
Commission (which disclosure shall include the compensation
discussion and analysis, the compensation tables, and any related
material).
``(2) Nonbinding vote.--A shareholder vote described in
paragraph (1) shall not be binding on the board of directors of a
TARP recipient, and may not be construed as overruling a decision
by such board, nor to create or imply any additional fiduciary duty
by such board, nor shall such vote be construed to restrict or
limit the ability of shareholders to make proposals for inclusion
in proxy materials related to executive compensation.
``(3) Deadline for rulemaking.--Not later than 1 year after the
date of enactment of the American Recovery and Reinvestment Act of
2009, the Commission shall issue any final rules and regulations
required by this subsection.
``(f) Review of Prior Payments to Executives.--
``(1) In general.--The Secretary shall review bonuses,
retention awards, and other compensation paid to the senior
executive officers and the next 20 most highly-compensated
employees of each entity receiving TARP assistance before the date
of enactment of the American Recovery and Reinvestment Act of 2009,
to determine whether any such payments were inconsistent with the
purposes of this section or the TARP or were otherwise contrary to
the public interest.
``(2) Negotiations for reimbursement.--If the Secretary makes a
determination described in paragraph (1), the Secretary shall seek
to negotiate with the TARP recipient and the subject employee for
appropriate reimbursements to the Federal Government with respect
to compensation or bonuses.
``(g) No Impediment to Withdrawal by TARP Recipients.--Subject to
consultation with the appropriate Federal banking agency (as that term
is defined in section 3 of the Federal Deposit Insurance Act), if any,
the Secretary shall permit a TARP recipient to repay any assistance
previously provided under the TARP to such financial institution,
without regard to whether the financial institution has replaced such
funds from any other source or to any waiting period, and when such
assistance is repaid, the Secretary shall liquidate warrants associated
with such assistance at the current market price.
``(h) Regulations.--The Secretary shall promulgate regulations to
implement this section.''.
SEC. 7002. APPLICABILITY WITH RESPECT TO LOAN MODIFICATIONS.
Section 109(a) of the Emergency Economic Stabilization Act of 2008
(12 U.S.C. 5219(a)) is amended--
(1) by striking ``To the extent'' and inserting the following:
``(1) In general.--To the extent''; and
(2) by adding at the end the following:
``(2) Waiver of certain provisions in connection with loan
modifications.--The Secretary shall not be required to apply
executive compensation restrictions under section 111, or to
receive warrants or debt instruments under section 113, solely in
connection with any loan modification under this section.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.